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NuStar Energy L.P. Acquires Asphalt Holdings, Inc. and its Subsidiaries from Private Equity Firm Denham Capital

Company's Three Storage Terminals in Mobile County, Alabama Provide NuStar with Additional Fee-Based Contribution Facilities Have Capacity for 1.8 million Barrels of Crude Oil, Fuel Oil, Diesel and Asphalt

SAN ANTONIO & BOSTON, May 24, 2010 (BUSINESS WIRE) --NuStar Energy L.P. (NYSE: NS) today announced that it has reached an agreement with Denham Capital, an energy- and commodities-focused global private equity firm, to acquire Denham's equity holdings in Asphalt Holdings, Inc. for $44.1 million. The acquisition is expected to be immediately accretive to NuStar Energy's distributable cash flow per unit.

The acquired operations involve the receipt, storage, and distribution of asphalt and crude oil via marine vessels, barges, tank trucks, and rail cars. The acquisition provides NuStar with three storage terminals that include 24 storage tanks with a total capacity of approximately 1.8 million barrels. Additionally, the terminals have rail- and truck-loading facilities and three docks with barge or ship access. The facilities are located in Alabama on 17 acres of land on Blakeley Island on the east bank of the Mobile River and another 28.5 acres at the Port of Chickasaw.

"I am excited to announce the acquisition of Asphalt Holdings and its three storage terminals," said Curt Anastasio, chief executive officer and president of NuStar Energy L.P. and NuStar GP Holdings, LLC. "Acquiring the three storage terminals allows us to add to our already attractive set of fee-based assets in the U.S. Through this acquisition, we expand our terminal presence into a new market in the U.S. Gulf Coast and have the opportunity to expand into new asphalt markets as well."

"We continue to see an active exit environment for our businesses," commented Bill Zartler, managing partner and head of Denham's Energy Infrastructure Group. "With today's announcement, Denham has successfully exited six investments already in 2010. We are pleased that NuStar recognizes the valuable assets we were able to develop and that this sale meets Denham's targeted returns."

About NuStar Energy L.P.

NuStar Energy L.P. is a publicly traded, limited partnership based in San Antonio, with 8,417 miles of pipeline, 89 storage facilities and two asphalt refineries with a combined throughput capacity of 104,000 barrels per day. One of the largest asphalt refiners and marketers in the U.S. and the second largest independent liquids terminal operator in the nation, NuStar has operations in the United States, the Netherlands Antilles, Canada, Mexico, the Netherlands and the United Kingdom. The partnership's combined system has over 93 million barrels of storage capacity, and includes two asphalt refineries, crude oil and refined product pipelines, refined product terminals, a petroleum and specialty liquids storage and terminaling business, as well as crude oil storage facilities. For more information, visit NuStar Energy L.P.'s Web site at www.nustarenergy.com.

About Denham Capital

Denham Capital is a leading global private equity firm, with offices in Boston, Houston, Short Hills, New Jersey and London. With approximately $4.3 billion of invested and committed capital, Denham makes direct investments in all segments of the energy and commodities value chain, including oil and gas, mining, timber, power, carbon assets and energy-related infrastructure and services. The firm invests globally, with investments currently in the U.S., Canada, South America, Europe, Russia/CIS, Asia and Australia, and across all parts of the capital structure and all stages of the corporate and asset lifecycle, from development projects to mature, operating businesses. Denham typically targets investments between $50 million and $250 million. For more information about Denham Capital, visit www.denhamcapital.com. Denham Capital does not provide investment advisory services to the public.

Cautionary Statement Regarding Forward-Looking Statements

This press release includes forward-looking statements regarding future events.All forward-looking statements are based on the partnership and company's beliefs as well as assumptions made by and information currently available to the partnership and company.These statements reflect the partnership and company's current views with respect to future events and are subject to various risks, uncertainties and assumptions.These risks, uncertainties and assumptions are discussed in NuStar Energy L.P. and NuStar GP Holdings, LLC's 2009 annual reports on Form 10-K and subsequent filings with the Securities and Exchange Commission.NuStar Energy L.P. undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.

SOURCE: NuStar Energy L.P.

NuStar Energy
Chris C. Russell, 210-918-3507
Vice President - Investor Relations
Chris.Russell@NuStarenergy.com
or
Mary Rose Brown, 210-918-2314
Senior Vice President - Administration
Maryrose.brown@nustarenergy.com
or
Denham Capital
Gina M. Sorice, 212-279-3115, ext. 243
gsorice@cjpcom.com