NuStar Energy LP agreed to sell its terminal in Nova Scotia, Canada to EverWind Fuels for $60 million, according to a Feb. 14 release from the San Antonio-based company.

“This divestiture, at an attractive valuation in line with prior transactions, is yet another step in our strategic plan to continue optimizing our business, building our financial flexibility and strengthening our balance sheet,” Brad Barron, president and CEO of NuStar, commented in a company release.

The 7.8 million-barrel storage terminal is located at Point Tupper on the Strait of Canso, near Port Hawkesbury, Nova Scotia. The sale to EverWind Fuels, a subsidiary of Houston-headquartered TDL Partners and private developer of green hydrogen and ammonia production, storage facilities and associated transportation assets, is expected to close in the first half of 2022.

NuStar on Feb. 14 said that it 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.

“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 multiyear optimization initiative,” Barron added. “By continuing to focus on optimizing 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.”

Barclays served as exclusive financial adviser to NuStar on the sale of the Nova Scotia terminal.

Comments