NuStar in Martin Corpus deal

NuStar Energy is buying crude oil and refined product storage assets in the Port of Corpus Christi, Texas, from Martin Midstream Partners LP for a net US$93 million.
The acquisition, which is expected to close by the end of the fourth quarter of 2016, is expected to be immediately accretive to NuStar’s earnings based on the terminal’s current, actual volumes. It also reflects a seven times multiple based on the forecasted four-year average EBITDA attributable to the assets of $13.5 million a year.
When combined with NuStar’s existing terminal operations in Corpus Christi, the acquisition will give NuStar over 3.6 million barrels of total storage in the port, including 3.1 million barrels of crude oil storage and 577,000 barrels of refined product storage.
The terminal NuStar is acquiring includes 1.15 million barrels of total storage, which is comprised of 900,000 barrels of crude oil storage and 250,000 barrels of refined product storage. The terminal has direct connectivity to Eagle Ford crude oil production and receives crude oil and condensate via its connection to the Harvest Pipeline and through a six-bay truck rack. It also has access to two of the port’s deepwater crude oil docks, including exclusive use of the new crude oil dock, and a barge dock. The terminal is located on 25 acres, and has room for further expansion.
NuStar expects to achieve significant operational synergies between its existing North Beach Terminal and the Martin terminal, which are located adjacent to each other in the Corpus Christi port.