NuStar Energy looking to expand into Permian Basin
NuStar Energy LP announced on Tuesday that it is buying privately held Navigator Energy Services LLC for approximately $1.48 billion.
The company says with the purchase of the Dallas-based pipeline company it is expanding its operation into the Permian Basin.
Navigator Energy owns and operates crude oil transportation, pipeline gathering and storage assets located in the Midland Basin of West Texas.
Its assets include about 500 miles of crude oil pipelines with about 74,000 b/d ship-or-pay volume commitments and deliverability of 412,000 b/d. Navigator also operates a pipeline gathering system with a capacity of over 400,000 b/d of pumping capacity over 500,000 dedicated acres and about 1 million barrels of crude oil storage capacity.
“We are excited about starting 2017 with a strategic acquisition, and the addition of Navigator’s Permian assets marks NuStar’s entry into one of the most prolific basins in the United States,” said NuStar President and CEO Bradley C. Barron.
Navigator Energy CEO John O’Shea said “We could not be more excited for all of Navigator’s stakeholders in finding a future owner in NuStar that shares our commitment to exceptional customer and employee relations.”
The deal is expected to close in mid-to-late May.
Other pipeline companies including Plains All American Pipeline and Kinder Morgan have also expanded their operations in the Permian Basin, the largest shale play in the US.