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.