NuStar Energy Signs NGL Transport Deal With Occidental Petroleum
NuStar Energy had a busy day today. The company announced that it signed a long-term deal with Occidental Petroleum for the shipment of natural gas liquids through the former's pipeline in Texas. The terms of the arrangement were not disclosed.
The pipeline is a 200-mile, 12-inch conduit located in Southeast Texas with a capacity of roughly 110,000 barrels per day. It is currently idle; NuStar said it would repurpose it from its current configuration for refined products to NGLs.
Occidental will utilize much of the pipeline's capacity to move NGLs, via an interconnect, to its Ingleside Energy Center export facility located in the Texas municipality of the same name.
NuStar estimates that the project is slated to begin operation in Q2 2015. Once the pipeline is in service, it will bring in around $23 million in EBITDA annually for the company.
Separately, the company announced its Q4 and fiscal 2013 results. For the quarter, revenues dropped to $785 million from the $983 million in the same period the previous year. The attributable bottom line deficit deepened to $368 million ($4.73 per unit), from the $21 million ($0.27) shortfall of Q4 2012.
For the full year, top line was $3.5 billion, against 2012's $5.9 billion. Attributable net loss was $311 million ($4.00 per unit); the 2012 shortfall was $263 million ($3.61).
The article NuStar Energy Signs NGL Transport Deal With Occidental Petroleum originally appeared on Fool.com.Eric Volkman has no position in any stocks mentioned. Nor does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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