Published on 20 Jan 2024 on Zacks via Yahoo Finance

NuStar Energy L.P. (NS) Stock Jumps 18.3%: Will It Continue to Soar?

NuStar Energy L.P. (NS) shares ended the last trading session 18.3% higher at $21.32. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1.5% loss over the past four weeks.

NuStar Energy L.P. shares rose last intra-day following the announcement of its acquisition by Sunoco LP in an all-equity transaction valued at $7.3 billion, including assumed debt. Under the terms of the agreement, NuStar common unitholders will receive 0.4 Sunoco units for every common unit they own. This exchange ratio represents a 24% premium based on the 30-day Volume Weighted Average Prices of both partnerships as of Jan 19, and a 31% premium over NuStar's most recent closing price. The boards of both partnerships have approved the acquisition. They expect to achieve at least $150 million in run-rate synergies by the third year after following the deal's closure.

This company is expected to post quarterly earnings of $0.27 per share in its upcoming report, which represents a year-over-year change of -20.6%. Revenues are expected to be $362.28 million, down 15.7% from the year-ago quarter.