NuStar Energy LP has announced that it has entered into an agreement to sell its terminal in Nova Scotia, Canada to EverWind Fuels for $60 million.
The 7.8-million-barrel storage terminal is located at Point Tupper on the Strait of Canso, near Port Hawkesbury, Nova Scotia. The sale is expected to close in the first half of 2022, subject to the satisfaction of customary closing conditions.
“This divestiture, at an attractive valuation in line with prior transactions, is yet another step in our strategic plan to continue optimising our business, building our financial flexibility and strengthening our balance sheet,” said Brad Barron, president and CEO of NuStar.
“We continue to expect to fund our spending from our internally generated cash flows in 2022, just as we did in 2021, which reflects the success of our multi-year optimisation initiative,” Barron added. “By continuing to focus on optimising our spending across our business, we are building a solid foundation that, along with these divestiture proceeds, will position NuStar for future opportunities and allow us to continue to pay down debt and improve our leverage.”
NuStar now expects to spend $130 to $160 million on strategic capital and continues to expect to spend $35 to $45 million on reliability capital for the year, all of which will be funded by internally generated cash flows.
Furthermore, NuStar reiterated its guidance for full year adjusted EBITDA (Earnings Before Interest, Taxes Depreciation and Amortisation) of $700 to $750 million.
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