In the keynote address at the Greater San Antonio Chamber of Commerce Economic Outlook Conference today, Valero founder Bill Greehey will announce that Valero L.P. (NYSE: VLI) and Valero GP Holdings, LLC (NYSE: VEH) will change their names to NuStar Energy, L.P. and NuStar GP Holdings, LLC, respectively, as a result of the separation from Valero Energy Corporation.
“Our new name says it all,” said Greehey, who serves as the Chairman of both companies. “We are the new star in the energy business, but we’re also the same great company that has achieved stellar success by hiring the best employees and maintaining the best corporate culture.”
The NuStar name and eye-catching, blue-and-yellow logo, which features a shooting star, will begin being used externally on April 2, 2007. The introduction will coincide with the launch of the newly rebranded web sites and the first day that both companies’ units begin trading under new ticker symbols – NS for NuStar Energy, L.P. and NGP for NuStar GP Holdings, LLC – on the New York Stock Exchange.
The name change also dovetails with the L.P.’s move from Valero Energy’s campus to a new corporate office in north San Antonio. The company will occupy an 84,000-square-foot building under construction at Loop 1604 and Bitters Road in the Inwood Heritage Oaks development. The Class A building is in a highly visible location in one of the fastest-growing areas of the city.
“We are excited about working with our employees to continue expanding our presence, improving our assets, increasing our unitholder value, making the company an even greater place to work, and making a positive difference in our communities,” said Valero L.P.’s President and CEO Curt Anastasio.
Valero L.P. Won’t Be San Antonio’s Best-Kept Secret for Long
Greehey talked about the dramatic growth of Valero L.P., which owns a pipeline and terminals network that stretches from the U.S. to the U.K. and ranks among the largest in the world. He said Valero L.P. has been referred to as San Antonio’s “best-kept secret” because the company’s tremendous success has been overshadowed by Valero Energy to date. But he noted, “that’s all about to change!”
In the past five years, Valero L.P. has grown from 160 employees to 1,300; from $387 million in assets to nearly $3.5 billion; and from $46 million in net income to $133 million in 2006. Combined, Valero GP Holdings and Valero L.P. have a market cap of over $4 billion, making it the 5th largest public company in San Antonio. Valero L.P.’s units have had a total return of over 260 percent since the company’s initial public offering in 2001.
“Because of our employees’ contributions to our success, we are at a very important turning point in the history of our company,” said Greehey. “With our newfound independence, we are now in a better position to continue growing and achieving even greater success in the years ahead.”
Valero GP Holdings Generates Strong Returns Since IPO
Last year, Valero GP Holdings completed two public offerings selling all of Valero Energy’s interest in Valero L.P. In July, 41 percent of Valero Energy’s interest in the holding company was sold in an initial public offering, and in December, Valero Energy’s remaining 59 percent interest in the holding company was sold in a follow-on offering. As a result, Valero Energy no longer owns any financial interest in Valero L.P. or Valero GP Holdings. Since the initial public offering, Valero GP Holdings has had a total return of over 25 percent.
About Valero L.P.
Valero L.P. is a publicly traded, limited partnership based in San Antonio, with 9,303 miles of pipeline, 87 terminal facilities and four crude oil storage facilities. One of the largest independent terminal and petroleum liquids pipeline operators in the nation, the partnership has operations in the United States, the Netherlands Antilles, Canada, Mexico, the Netherlands and the United Kingdom. The partnership's combined system has approximately 80 million barrels of storage capacity, and includes crude oil and refined product pipelines, refined product terminals, a petroleum and specialty liquids storage and terminaling business, as well as crude oil storage tank facilities. For more information, visit Valero L.P.'s web site at www.nustarenergy.com.
About Valero GP Holdings, LLC
Valero GP Holdings, LLC is a publicly traded limited liability company that owns the two percent general partner interest, a 21.4 percent limited partner interest and the incentive distribution rights in Valero L.P., one of the largest independent terminal and petroleum liquids pipeline operators in the nation with operations in the United States, the Netherlands Antilles, Canada, Mexico, the Netherlands and the United Kingdom. For more information, visit Valero GP Holdings, LLC's web site at www.nustargpholdings.com.
Contact: Valero L.P., San Antonio
Investor Relations: 210-345-2895
Mary Rose Brown
Senior Vice President
Corporate Communications: 210-345-2314