NuStar Buying Eagle Ford Midstream Assets - Selling San Antonio Refinery

TexStar Eagle Ford Crude Oil System
TexStar Eagle Ford Crude Oil System

NuStar Energy has agreed to buy Eagle Ford midstream assets from TexStar Midstream for $425 million. The deal will be completed in two pieces - crude oil assets then NGL assets.The crude oil system moves through La Salle, Frio, and Live Oak counties moving 60,000 b/d, with the potential to move as much as 100,000 b/d.

NuStar will also sell its San Antonio refinery and associated terminal in Elmnedorf, TX. The refinery refines a little more than 14,000 b/d of crude and is being sold as part of the company's strategy to move away from margin based businesses. NuStar has approximately $90 million invested in the refinery to date.

“The TexStar acquisition and refinery divestiture are the next critical steps in our strategic redirection of NuStar away from the margin-based refining and marketing business in order to further grow our fee-based pipeline and storage operations through internal growth projects and acquisitions,” said NuStar President and CEO Curt Anastasio. “NuStar was actually the first company to move Eagle Ford crude by pipeline, and we are fortunate to have extensive pipeline and terminal assets already in operation throughout the Eagle Ford region.

NuStar see's a very bright investment climate in South Texas. The company stated there are more high return opportunities in fee based transportation and storage projects than they have ever had in the history of the company. Expect to hear more from NuStar as the company builds additional pipelines in infrastructure in the region.