By MELODIE WARNER
NuStar Energy agreed to sell its San Antonio refinery and a related terminal in Elmendorf, Texas, to Calumet Specialty Products Partners for $100 million, plus inventory currently estimated at $15 million.
NuStar, a pipeline-and-storage company, had put the refinery and terminal up for sale in November as part of its plans to shift away from the margin-based refining and marketing business in order to further grow its fee-based pipeline and storage operations.
The 14,500-bpd refinery produces and sells various products, including jet fuels, ultra-low sulfur diesel, and other highly specialized fuels. The Elmendorf terminal, located about 12 miles away from the refinery, stores the crude oil that is processed at the refinery.
The company said it purchased the refinery and terminal out of bankruptcy in April 2011 for $41 million and said it has spent about $54 million on improvements to the refinery.
NuStar, which is also one of the largest US asphalt companies, has posted mixed results over the past year as high oil prices add to some of its costs and asphalt demand has been weak.
In October, the company said it swung to a third-quarter loss amid inventory write-downs related to its sale of a stake in its asphalt business.
Dow Jones Newswires