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First Reserve to sell Navigator Energy Services for $1.48bn

Staff Writer |
NuStar Energy has entered into a definitive agreement to acquire Navigator Energy Services for approximately $1.475 billion, subject to purchase price adjustments.

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Navigator owns and operates crude oil transportation, pipeline gathering and storage assets located in the Midland Basin of West Texas consisting of:

- approximately 500 miles of crude oil mainline transportation pipelines with approximately 74,000 barrels per day, ship-or-pay volume commitments and deliverability of approximately 412,000 barrels per day through multiple outbound interconnects;

- a pipeline gathering system with more than 200 connected producer tank batteries capable of more than 400,000 barrels per day of pumping capacity covering over 500,000 dedicated acres; and

- approximately 1 million barrels of crude oil storage capacity with 440,000 barrels leased to third parties.

The acquisition is expected to close in mid- to late-May 2017, subject to customary closing conditions, including the receipt of regulatory approvals.

Because the acquisition is subject to customary closing conditions, the Partnership can give no assurance that the transaction will be consummated on the terms described or at all.

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