NuStar shares gain a second straight session on Tuesday, company to acquire Navigator Energy in a deal valued at $1.48 billion

According to an April 11th statement by NuStar Energy LP (NS), in an attempt to expand its presence into the Permian basin, the pipeline operator intends to acquire Navigator Energy Services LLC in a deal estimated at about $1.48 billion. In addition, a public stock offering of 10.5 million units was announced by the pipeline operator in order to finance a portion of the acquisition price. The deal is expected to be finalized by mid- to late-May.

NuStar shares closed higher for a second consecutive trading session on Tuesday. The stock edged up 0.10% ($0.05) to $51.47, with the intraday high and the intraday low being at $51.75 and $51.24 respectively. In the week ended on April 9th the shares of the US pipeline operator lost 1.48% of their market value compared to a week ago, which marked the fourth drop in the past five weeks and also the worst performance since the week ended on March 19th. However, the stock has pared its slump to 0.98% so far during the current month, following a 0.50% drop in March. The latter has been a second straight month of decline. For the entire past year, NuStar shares gained 24.19%.

Navigator Energys assets in West Texas include 500 miles of crude oil mainline transportation pipelines and approximately 1 million barrels of crude oil storage capacity, of which 440 000 barrels are leased to third parties, as reported by Reuters.

According to CNN Money, the 10 analysts, offering 12-month forecasts regarding NuStar’s stock price, have a median target of $54.00, with a high estimate of $58.00 and a low estimate of $52.00. The median estimate is a 4.92% surge compared to the closing price of $51.47 on April 11th.

The same media also reported that 9 out of 13 surveyed investment analysts had rated NuStar Energy’s stock as “Hold”, while 2 – as “Buy”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the NuStar stock are presented as follows:

R1 – $51.52
R2 – $51.56
R3 (Range Resistance – Sell) – $51.61
R4 (Long Breakout) – $51.75
R5 (Breakout Target 1) – $51.91
R6 (Breakout Target 2) – $51.98

S1 – $51.42
S2 – $51.38
S3 (Range Support – Buy) – $51.33
S4 (Short Breakout) – $51.19
S5 (Breakout Target 1) – $51.03
S6 (Breakout Target 2) – $50.96

By using the traditional method of calculation, the weekly levels of importance for NuStar Energy LP (NS) are presented as follows:

Central Pivot Point – $51.63
R1 – $52.26
R2 – $53.31
R3 – $53.94
R4 – $54.57

S1 – $50.58
S2 – $49.95
S3 – $48.90
S4 – $47.85