Calumet Specialty Products Partners, L.P. Announces Agreement to Acquire San Antonio, Texas Refinery Assets from NuStar Energy,

abarrelfullabarrelfull wrote on 17 Dec 2012 14:49
Tags: calumet deals n-america nustar refinery texas usa


Calumet Specialty Products Partners, L.P. ("Calumet") (NASDAQ:CLMT) announced today that it has signed a definitive agreement to acquire the San Antonio, Texas refinery and associated crude oil pipeline, crude oil terminal, other operating and logistics assets and inventories (the "San Antonio Assets") of NuStar Refining, LLC and NuStar Logistics, L.P., both wholly owned subsidiaries of NuStar Energy L.P. (NYSE:NS), for aggregate consideration of approximately $100 million, plus an amount for closing date inventory estimated to be $15 million, subject to customary purchase price adjustments (the "NuStar Acquisition"). Closing of the transaction is expected to occur in January 2013, subject to customary closing conditions.

Highlights of the San Antonio Assets include the following:

  • Refinery crude oil throughput capacity of approximately 14,500 barrels per day;
  • Refinery currently produces ultra-low sulfur diesel, jet fuel, specialty solvents, reformates, naphtha, and vacuum gas oil;
  • Approximately 0.2 million barrels of storage capacity at the San Antonio refinery and approximately 0.2 million barrels of crude oil storage capacity at a crude oil terminal located in Elmendorf, Texas; and
  • Crude oil feedstocks sourced from South Texas, primarily the Eagle Ford Shale.

"We are pleased to announce the acquisition of the San Antonio refinery into our portfolio of assets, giving us further geographic reach with a refinery strategically located near the Eagle Ford Shale. We expect to complete the refinery's current initiative to add finished gasoline to its product mix in the near term and plan to evaluate a potential capacity expansion for the refinery as well as explore various crude oil sourcing opportunities," said Calumet's Vice Chairman and Chief Executive Officer Bill Grube. "We expect the acquisition to be immediately accretive to distributable cash flow," said Grube.

Calumet intends to finance the NuStar Acquisition through a combination of borrowings under its senior secured revolving credit facility and cash on hand. Calumet's obligation to consummate the NuStar Acquisition is not conditioned upon the receipt of financing.

Latham & Watkins LLP is acting as legal counsel to Calumet.


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