NuStar Energy L.P. (NS) announced that it now has complete ownership of a refined products terminal in Linden, NJ, in the New York Harbor. The San Antonio, TX-based publicly traded partnership previously had 50% stake in the facility, the remaining being held by its joint-venture partner Linden Holding Corp., an affiliate of NIC Holding Corp. The transaction is valued at $142.5 million.
The Linden terminal has a storage capacity of 4.3 million barrels of refined products comprising gasoline, jet fuel and fuel oils. Moreover, the facility has a deep-water ship dock and one barge dock. It is linked to the Colonial and Sun pipelines for inbound and Buckeye Pipeline for outbound connections.
NuStar Energy expects the deal to be immediately accretive to 2015 earnings. Post-transaction, the partnership expects an addition of about $20 million to its earnings before interest, taxes, depreciation and amortization (“EBITDA”).
Management at NuStar Energy said that this strategic move will not only strengthen its presence in the New York Harbor and the East Coast region, but will also provide expansion opportunities.
NuStar Energy added that the Linden terminal being adjacent to the Linden NuTop terminal (fully owned by NuStar), the partnership would be able to generate greater efficiency from both the terminals. The NuTop terminal has refined product storage capacity of about 389,000 barrels.
NuStar Energy is engaged 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 partnership is the second largest independent liquids terminal operator in the nation.
Currently, NuStar Energy carries a Zacks Rank #3 (Hold).
Better-ranked players from the same industry include Spectra Energy Partners, LP (SEP), Enbridge Energy Management LLC (EEQ) and PBF Logistics LP (PBFX). Each of these stocks sports a Zacks Rank #1 (Strong Buy).
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