Bloomberg News

NuStar Falls After Analyst Says Dividend in Peril: Dallas Mover

March 04, 2013

NuStar Energy LP, (NS:US) the pipeline operator that sold its refining business this year, fell the most in more than three months after an analyst said a canceled pipeline purchase put the company at risk of cutting its dividend.

The shares fell 7.4 percent to $46.77 at 3:41 p.m. in New York, the most intraday since Nov. 12.

NuStar may have to cut the distribution it pays to unit holders afters its plan to buy a petroleum-liquids pipeline was canceled, Credit Suisse Group AG analyst Brett Reilly said in a note to clients today. Credit Suisse downgraded the shares to the equivalent of sell from hold.

NuStar, based in San Antonio, in November to buy TexStar Midstream Services LP for $425 million. The company received a letter from TexStar on Feb. 18 purporting to cancel the deal, according to a March 1 filing.

“We are evaluating all of our legal options,” NuStar said in the filing. TexStar doesn’t have the right to end the deal, NuStar said in the filing. NuStar closed on the $325 million sale Dec. 14.

Mary Rose Brown, a spokeswoman for NuStar, didn’t immediately respond to a request for comments.

To contact the reporter on this story: Mike Lee in Dallas at mlee326@bloomberg.net

To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net


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Companies Mentioned

  • NS
    (NuStar Energy LP)
    • $64.2 USD
    • -0.07
    • -0.11%
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