San Antonio-based pipeline and terminal operator NuStar Energy LP announced Monday a $60 million agreement to sell its Nova Scotia, Canada, terminal to EverWind Fuels.
The terminal, near Port Hawkesbury, Nova Scotia, holds 7.8 million barrels in crude oil and petroleum storage.
NuStar President and CEO Brad Barron said in a news release the sale was intended to help NuStar pay down debt and improve its leverage in future transactions.
The sale comes on the heels of an $11 million hit the company took to its February earnings last year during winter storm Uri, though it still reported a profitable 2021 first quarter of $42.3 million. Its 2021 comeback was in stark contrast with the nearly $200 million net loss it suffered in 2020 due to pandemic-fueled upheaval in the oil and gas industry.
EverWind Fuels is a subsidiary of Houston-headquartered TDL Partners, is a private producer of hydrogen and ammonia that owns storage facilities and related transport assets.
Barclays Bank served as financial advisor to NuStar in the sale, which is expected to close sometime in the first half of 2022.
NuStar has operations in the United States, Canada and Mexico. The company owns roughly 10,000 miles of pipeline and 64 terminal and storage facilities for crude oil, refined products, renewable fuels, ammonia and specialty liquids with a combined storage capacity of 57 million barrels.
