NuStar buying Navigator Energy for $1.5 billion

San Antonio-based NuStar Energy is buying Navigator Energy Services for $1.5 billion to establish its pipeline presence in West Texas’ Permian Basin.

The Permian is booming again and NuStar is seeking to build a foothold there with pipeline, processing and storage capacity. Dallas-based Navigator is backed financially by the private equity First Reserve Energy Infrastructure Fund.

The deal includes about 500 miles of crude oil pipelines, 1 million barrels of crude storage capacity, and a pipeline gathering system over 500,000 acres. The deal is expected to close in May.

“We are excited about starting 2017 with a strategic acquisition, and the addition of Navigator’s Permian assets marks NuStar’s entry into one of the most prolific basins in the United States,” said NuStar President and CEO Bradley Barron.

SHOW MORE