Supply Agreement Positions NuStar To Remain In A Competitive
Position as a Bunker Marketer While Significantly Reducing Working
Capital Requirements
SAN ANTONIO--(BUSINESS WIRE)--Aug. 23, 2013--
As part of its announced strategy to review and strengthen its bunker
fuel marketing operations, NuStar Energy L.P. (NYSE: NS) today announced
it has signed a fuel oil supply agreement with a major fuel oil trading
company. This agreement enables NuStar to create a “back-to-back”
trading model in which NuStar purchases bunker fuel supply from this
company to fulfill the needs of its customers in St. Eustatius and the
Caribbean. This trading model will allow NuStar to reduce working
capital tied to inventory, reduce exposure to price volatility and hedge
ineffectiveness, and better manage operating expenses. In fact, the
agreement will help NuStar lower its working capital expenses by $40 to
$50 million, and save the company related attendant interest and hedging
costs.
“This agreement is a very positive step in our efforts to strengthen the
bunker marketing operations within our fuels marketing segment, which
has been impacted by weak demand and difficult market conditions,” said
NuStar President and CEO Curt Anastasio. “This agreement allows us to
remain in a competitive position as a bunker fuel marketer, while
reducing our exposure to price risks and dramatically reducing our
working capital expenses related to our bunker marketing operations. We
also believe that it creates opportunities to grow our fuel oil business
in the Caribbean.”
About NuStar Energy L.P.
NuStar Energy L.P., a publicly traded master limited partnership based
in San Antonio, is one of the largest independent liquids terminal and
pipeline operators in the nation. The partnership currently has 8,621
miles of pipeline; 87 terminal and storage facilities that store and
distribute crude oil, refined products and specialty liquids; and a 50%
ownership in a joint venture that owns a terminal and an asphalt
refinery with a throughput capacity of 74,000 barrels per day. The
partnership’s combined system has approximately 97 million barrels of
storage capacity, and NuStar has operations in the United States,
Canada, Mexico, the Netherlands, including St. Eustatius in the
Caribbean, the United Kingdom and Turkey.
Source: NuStar Energy L.P.
NuStar Energy, L.P., San Antonio
Investors, Chris Russell,
Treasurer and Vice President Investor Relations
Investor Relations:
210-918-3507
or
Media, Mary Rose Brown, Executive Vice
President,
Corporate Communications: 210-918-2314
Web site: http://www.nustarenergy.com