NuStar Energy Closes on Sale of Its European Operations to Inter Pipeline

NuStar Energy L.P. (NYSE: NS) announced today that it has closed on the
sale of its European terminals and related assets to Inter Terminals
Ltd., which is Inter Pipeline Ltd.’s European storage subsidiary, for
$270 million, plus normal closing adjustments. The operations include
six liquids storage terminals in the United Kingdom and one facility in
Amsterdam.

"This was a very important strategic decision for NuStar but also a
difficult one given the quality of the assets and workforce," said
NuStar President and CEO Brad Barron. "But as we have said, the assets
were not synergistic with our other operations, and the sale helps us
achieve the final component of our comprehensive plan launched earlier
this year to position NuStar for long-term success by significantly
lowering our debt metrics in order to deliver strong, sustainable
distribution coverage for the future."

Barron outlined other transformative actions of the plan that included
simplifying NuStar's corporate structure and eliminating the incentive
distribution rights to lower the company's cost of capital and allow it
to continue to build on the strength of its asset base with less
dependence on the equity capital markets. NuStar will use proceeds from
the transaction to pay down debt and fund the growth of its core
operations.

"We are very pleased with the progress we have made in implementing our
plan and the results we have seen," Barron said. "All of this was
necessary due to a fundamental shift in the Master Limited Partnership
(MLP) sector this past year that required the transformative actions we
have taken to ensure the long-term financial strength of the company.

"And we are pleased that these operations and employees are now part of
another strong company with more operational and geographical synergies,
which should create more growth opportunities for the operations and
more advancement opportunities for the employees," Barron added.

Wells Fargo Securities, LLC served as NuStar’s exclusive financial
advisor on this transaction.

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. NuStar currently has more than 9,700
miles of pipeline and 75 terminal and storage facilities that store and
distribute crude oil, refined products and specialty liquids. The
partnership’s combined system has more than 88 million barrels of
storage capacity, and NuStar has operations in the United States,
Canada, Mexico and St. Eustatius in the Caribbean. For more information,
visit NuStar Energy L.P.’s website at www.nustarenergy.com.

About Inter Pipeline Ltd.

Inter Terminals Ltd. is a wholly owned subsidiary of Inter Pipeline
Ltd., a major petroleum transportation, natural gas liquids processing,
and bulk liquid storage business based in Calgary, Alberta, Canada.
Inter Pipeline owns and operates energy infrastructure assets in western
Canada and Europe. Inter Pipeline is a member of the S&P/TSX 60 Index
and its common shares trade on the Toronto Stock Exchange under the
symbol IPL. www.interpipeline.com

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