We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
NuStar Energy (NS) to Offload Texas City Terminals for $106M
Read MoreHide Full Article
NuStar Energy, L.P. (NS - Free Report) announced the divestment of its Texas City Terminals to Houston's BWC Terminals for $106 million. As part of this transaction, the partnership agreed to sell its 80 tanks in its two Texas City terminals. The deal is expected to end in the fourth quarter of 2020 upon completion of customary closing conditions.
NuStar Energy intends to use the sale proceeds to mitigate its debt obligations and self-finance its capital expenditures as a means to its strategic action to adapt to the prevalent situations of the oil and gas industry. Even though the partnership accepts this as a difficult decision, it expects the employees of the to-be-sold facilities to access a fast-growing entity with a business model that is more operationally synergistic. This, in turn, will create ample possibilities of operational growth and also offer the extended staff a steady path of progress.
The terminal in Texas City has a storage capacity of worth 2.6 million barrels of blend stocks, chemicals, vacuum gas oil and refined petroleum products. Per Brad Barron, president/CEO at NuStar Energy, despite being a valuable resource with notable activities and efficient laborers, the positioning of the Texas City Terminal and its unique configuration failed to synchronize with NuStar Energy’s strategies for other Gulf Coast assets. Therefore, the best option to expedite the development process of these facilities and NuStar is by putting the company along with its assets under another organization’s control that can utilize the terminals’ petrochemical and petroleum capabilities.
As per BWC, which stores bulk liquids like hydrocarbons, chemicals and agricultural products, the Texas City units will be a natural fit to its assets.
Company Profile & Price Performance
Headquartered in San Antonio, TX, NuStar Energy LP is a midstream energy service provider. It is a master limited partnership (MLP) in the United States. The firm’s units have outperformed the industry in the past six months. The stock has lost 13.2% compared with the 15.5% decline of its industry.
Zacks Rank & Other Stocks to Consider
NuStar Energy currently carries a Zack Rank #2 (Buy). Some other top-ranked players in the energy space are Equitrans Midstream Corporation (ETRN - Free Report) , presently sporting a Zacks Rank #1 (Strong Buy), besides Equinor ASA (EQNR - Free Report) and MPLX LP (MPLX - Free Report) , each carrying the same Zacks Rank as NuStar Energy at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 6 months, the Zacks Consensus Estimate for Equitrans’ 2020 earnings has been raised 18.9%.
Equinor is expected to see earnings growth of 77.4% in 2021 whereas MPLX is likely to see earnings growth of 373.7% in 2021.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
Image: Bigstock
NuStar Energy (NS) to Offload Texas City Terminals for $106M
NuStar Energy, L.P. (NS - Free Report) announced the divestment of its Texas City Terminals to Houston's BWC Terminals for $106 million. As part of this transaction, the partnership agreed to sell its 80 tanks in its two Texas City terminals. The deal is expected to end in the fourth quarter of 2020 upon completion of customary closing conditions.
NuStar Energy intends to use the sale proceeds to mitigate its debt obligations and self-finance its capital expenditures as a means to its strategic action to adapt to the prevalent situations of the oil and gas industry. Even though the partnership accepts this as a difficult decision, it expects the employees of the to-be-sold facilities to access a fast-growing entity with a business model that is more operationally synergistic. This, in turn, will create ample possibilities of operational growth and also offer the extended staff a steady path of progress.
The terminal in Texas City has a storage capacity of worth 2.6 million barrels of blend stocks, chemicals, vacuum gas oil and refined petroleum products. Per Brad Barron, president/CEO at NuStar Energy, despite being a valuable resource with notable activities and efficient laborers, the positioning of the Texas City Terminal and its unique configuration failed to synchronize with NuStar Energy’s strategies for other Gulf Coast assets. Therefore, the best option to expedite the development process of these facilities and NuStar is by putting the company along with its assets under another organization’s control that can utilize the terminals’ petrochemical and petroleum capabilities.
As per BWC, which stores bulk liquids like hydrocarbons, chemicals and agricultural products, the Texas City units will be a natural fit to its assets.
Company Profile & Price Performance
Headquartered in San Antonio, TX, NuStar Energy LP is a midstream energy service provider. It is a master limited partnership (MLP) in the United States. The firm’s units have outperformed the industry in the past six months. The stock has lost 13.2% compared with the 15.5% decline of its industry.
Zacks Rank & Other Stocks to Consider
NuStar Energy currently carries a Zack Rank #2 (Buy). Some other top-ranked players in the energy space are Equitrans Midstream Corporation (ETRN - Free Report) , presently sporting a Zacks Rank #1 (Strong Buy), besides Equinor ASA (EQNR - Free Report) and MPLX LP (MPLX - Free Report) , each carrying the same Zacks Rank as NuStar Energy at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 6 months, the Zacks Consensus Estimate for Equitrans’ 2020 earnings has been raised 18.9%.
Equinor is expected to see earnings growth of 77.4% in 2021 whereas MPLX is likely to see earnings growth of 373.7% in 2021.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
Download Marijuana Moneymakers FREE >>