Publicly traded energy master limited partnership
NuStar Energy L.P.
) completed the sale of its San Antonio refinery and associated
terminal in Elmendorf, Texas to North American specialty
Calumet Specialty Products Partners LP
CALUMET SPECLTY (CLMT): Free Stock Analysis
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Per the deal, NuStar sold the refinery, a terminal in Elmendorf
and a 12-mile pipeline that links the refinery to the terminal.
Indianapolis-based Calumet also acquired the operating and
logistics assets and inventories of NuStar Refining LLC and
NuStar Logistics LP. Calumet paid $100 million for the purchase
along with $15 million for the inventory.
The San Antonio refinery was purchased by NuStar in April 2011,
and has a capacity of 14,500 barrels per day of crude oil. Jet
fuels, ultra-low sulfur diesel, naphtha, reformates, liquefied
petroleum gas and specialty solvents are also produced at the
NuStar will use the proceeds of this transaction to promote its
fee-based pipeline and storage operations. Both the companies
also entered into a transition services contract which entails
NuStar to provide operational and administrative support for the
coming few months.
San Antonio, Texas-based NuStar Energy engages in the
transportation and storage of crude oil as well as refined
products in the U.S., the Netherlands Antilles, Canada, Mexico,
and the U.K. The company has three business segments: Storage,
Transportation and Asphalt and Fuels Marketing.
Acquisitions have historically played a major role in the
partnership's growth profile and are expected to remain
significant in the future. NuStar may find it difficult to
complete accretive transactions moving forward, which could
restrict its growth rate.
NuStar - which was spun off from the U.S. refiner
Valero Energy Corp.
) in 2006 - currently retains a Zacks #3 Rank (short-term Hold