NuStar Energy Closes on Sale of Its San Antonio Refinery and Related Assets to Calumet Specialty Products Partners, L.P.

  NuStar Energy Closes on Sale of Its San Antonio Refinery and Related Assets
  to Calumet Specialty Products Partners, L.P.

Business Wire

SAN ANTONIO -- January 2, 2013

NuStar Energy L.P. (NYSE: NS) announced today that it has closed on the sale
of its San Antonio refinery and related assets, including a terminal in
Elmendorf, TX and a pipeline connecting the terminal and refinery, to Calumet
Specialty Products Partners, L.P.(“Calumet”) for $100 million, plus closing
date inventory of approximately $15 million. NuStar purchased the refinery and
terminal out of bankruptcy in April 2011 for $41 million, and the company has
invested approximately $54 million since then on improvements.

NuStar sold the refinery as part of its strategic redirection away from the
earnings volatility associated with the margin-based refining business in
order to further grow its more stable, fee-based pipeline and storage
operations through internal growth projects and acquisitions, especially in
the Eagle Ford Shale region and other U.S. shale plays, where NuStar already
has extensive pipeline and storage operations. NuStar will use proceeds from
the transaction to fund the growth of those fee-based pipeline and storage
operations.

“The purchase of the refinery was an excellent opportunity for NuStar, but
with our strategic direction to focus on and grow our pipeline and storage
operations, it was the right time to sell it, and we are pleased that we found
the right buyer in Calumet because they are a solid operator and they will
continue the momentum we started by investing in the refinery and its
employees,” said NuStar President and CEO Curt Anastasio. “The refinery has an
outstanding group of employees who worked very hard to make tremendous
improvements in the refinery’s safety, environmental performance, reliability,
and efficiency, and Calumet is fortunate to be bringing them aboard.”

To facilitate the transition of the facilities from NuStar to Calumet, the two
companies have entered into a transition services agreement in which NuStar
will continue providing operational and administrative support for the next
few months. Mike Milam, vice president and plant manager, announced that he
has accepted an offer with Calumet and will continue in his leadership role at
the refinery.

“While we will miss Mike at NuStar, he is very well-liked and respected by the
refinery employees and I know they will be pleased that he is staying on to
continue the many improvements planned for that facility,” said Anastasio.

Located on the South Side of San Antonio, the 14,500-barrel-per-day refinery
produces and sells various products, including jet fuels, ultra-low sulfur
diesel (ULSD), naphtha, reformates, liquefied petroleum gas (LPG), specialty
solvents and other highly specialized fuels, to commercial and retail
customers and the U.S. military.The Elmendorf terminal, which is
approximately 12 miles away from the refinery, stores the crude oil that is
processed at the refinery.

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 8,573 miles of pipeline; 87
terminal and storage facilities that store and distribute crude oil, refined
products and specialty liquids; and 50% ownership in two asphalt refineries
with a combined throughput capacity of 104,000 barrels per day. The
Partnership’s combined system has approximately 95 million barrels of storage
capacity, and NuStar has operations in the United States, Canada, Mexico, the
Netherlands, including St. Eustatius in the Caribbean, the United Kingdom and
Turkey. For more information, visit NuStar Energy L.P.'s Web site at
www.nustarenergy.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release includes forward-looking statements within the meaning of
the Securities Litigation Reform Act of 1995 regarding future events and the
future financial performance of NuStar Energy L.P. All forward-looking
statements are based on the partnership's beliefs as well as assumptions made
by and information currently available to the partnership. These statements
reflect the partnership's current views with respect to future events and are
subject to various risks, uncertainties and assumptions. These risks,
uncertainties and assumptions are discussed in NuStar Energy L.P.'s 2010
annual report on Form 10-K and subsequent filings with the Securities and
Exchange Commission.

Contact:

NuStar Energy, L.P., San Antonio
Investors, Chris Russell, Vice President,
Investor Relations: 210-918-3057
chris.russell@nustarenergy.com
or
Media, Mary Rose Brown, Senior Vice President,
Administration: 210-918-2314
maryrose.brown@nustarenergy.com
Web site: http://www.nustarenergy.com