U.S. pipeline operator NuStar Energy LP (NS.N) said on Tuesday it would buy privately held Navigator Energy Services LLC for about $1.48 billion (1.19 billion pounds), as it seeks to expand into the Permian basin.
Navigator Energy owns and operates crude oil transportation, pipeline gathering and storage assets in the PermianBasin in West Texas.
The assets include about 500 miles of crude oil mainline transportation pipelines and about 1 million barrels of crude oil storage capacity with 440,000 barrels leased to third parties.
Other pipeline companies such as Plains All American Pipeline LP (PAA.N) and Kinder Morgan Inc (KMI.N) have also signed deals to expand in the Permian — the biggest shale play in the United States — as oil producers make a beeline for the basin.
NuStar on Tuesday also announced a public stock offering of 10.5 million units to fund a portion of the purchase price for the deal.
UBS is NuStar's financial adviser, while Deutsche Bank advised Navigator.
The acquisition is expected to close by mid- to late-May, NuStar said.
(Reporting by John Benny in Bengaluru; Editing by Sai Sachin Ravikumar)