Jackson Walker Represents NuStar Energy in a $100+ Million Deal Involving NuStar’s Acquisition of Crude Oil and Refined Product Terminal Assets from Martin Midstream Partners
Jackson Walker partner Stephanie Chandler of the San Antonio office has successfully negotiated on behalf of NuStar Energy L.P. (NYSE:NS) (NuStar) the acquisition of terminal assets with the capacity for 1.15 million barrels of total storage, including 900,000 barrels of crude oil storage and 250,000 barrels of refined product storage, from Martin Midstream Partners L.P. (NASDAQ:MMPL) for approximately $93 million in net proceeds, as well as over $14 million in reimbursements, prepaid items, and previously paid cash payments.
The deal was signed on October 21, 2016, and is expected to close by the end of the year.
The MMPL terminal, located in the Port of Corpus Christi, has direct connectivity to Eagle Ford crude oil production and has access to two of the port’s deep-water crude oil docks, including exclusive use of the port’s new crude oil dock. This acquisition is expected to significantly increase operational synergies between NuStar’s existing North Beach Terminal and the MMPL terminal, especially given their proximity to each other in the Port of Corpus Christi. Combined, the two terminals will give NuStar over 3.6 million barrels of total storage in the Port of Corpus Christi, including 3.1 million barrels of crude oil storage and 577,000 barrels of refined product storage.
“Corpus Christi has been a strategic hub for NuStar for many years, and we are very pleased to make this acquisition that will not only solidify our presence there, but also give us the ability to serve a new pipeline and new customers, and provide us greater connectivity to domestic and international crude oil and refined products markets,” said NuStar President and CEO Brad Barron. “And this terminal fits perfectly within our acquisition criteria as it is synergistic with our existing assets, is immediately accretive to earnings and has additional upside growth potential,” Barron added.
NuStar Energy L.P. is a publicly traded master limited partnership based in San Antonio and is one of the largest independent liquids terminal and pipeline operators in the nation. NuStar currently has approximately 8,700 miles of pipeline and 79 terminal and storage facilities that store and distribute crude oil, refined products, and specialty liquids. The partnership’s combined system has approximately 94 million barrels of storage capacity with operations in the United States, Canada, Mexico, the Netherlands, including St. Eustatius in the Caribbean, and the United Kingdom.
About Jackson Walker
Jackson Walker’s corporate and securities group has extensive experience representing clients in mergers, acquisitions, dispositions, joint ventures, and other strategic alliances, as well as securities offerings, corporate governance, executive compensation, and securities laws compliance. Jackson Walker’s successful representation of its client in this transaction reflects over 100 years of leadership in the Texas Energy sector.
About the Team
Stephanie Chandler is a San Antonio transactional lawyer with experience in mergers and acquisitions and transactions in the energy industry. It is her unique grasp of the underlying fundamentals of the energy industry, together with her deep-seated work ethic and client commitment, that makes her a sought after professional in complex acquisitions such as those involved in midstream assets. Stephanie received her B.S.B.A. from the University of Nebraska in Finance and her J.D. from the University of Virginia School of Law.
Other team members included Brad Anderson, Andrew Baumgardner, Noah Galton, and Alexine Friedman.
Andrew Baumgardner chairs the real estate practice in San Antonio where he advises clients on the acquisition and divestiture of real property assets.
Alexine Friedman is an associate in the corporate group at Jackson Walker L.L.P. where she advises clients with respect to their acquisitions and divestitures.