News Release
NuStar Energy L.P. 2011 Full Year Distributable Cash Flow, EBITDA and Operating Income Higher than 2010
Fourth Quarter 2011 Results Benefit from the Completion of Internal Growth Projects
Expect Results to Continue to Improve in 2012
Earnings before interest, taxes, depreciation and amortization (EBITDA) were
Operating income was
Net income applicable to limited partners for the fourth quarter was
The partnership also announced that its board of directors has declared a fourth quarter 2011 distribution of
"Even though the U.S. and global economic conditions continued to be very challenging this past year and oil and gas volatility remained high, NuStar was able to generate more distributable cash flow, EBITDA and operating income in 2011 than in 2010," said
With regard to fourth quarter 2011 results Anastasio added, “Results in both our storage and transportation segments were higher than last year’s fourth quarter. Our storage segment benefited primarily from the 3rd quarter 2011 completion of a storage expansion project at our
Anastasio noted that, “While lower results in our asphalt and fuels marketing segment, primarily due to lower margins in our asphalt operations, offset the increased fourth quarter results in our storage and transportation segments, the non-recurring hedging gains associated with our
2012 Outlook
Commenting on the 2012 outlook for
In regard to internal growth spending Anastasio added, “NuStar continues to identify internal growth projects that should contribute to our EBITDA growth over the next several years. Currently we expect to spend
A conference call with management is scheduled for
This release serves as qualified notice to nominees under Treasury Regulation Sections 1.1446-4(b)(4) and (d). Please note that 100% of NuStar’s distributions to foreign investors are attributable to income that is effectively connected with a
Cautionary Statement Regarding Forward-Looking Statements
This press release includes forward-looking statements regarding future events. All forward-looking statements are based on the partnership and company's beliefs as well as assumptions made by and information currently available to the partnership and company. These statements reflect the partnership and company'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. and Subsidiaries | ||||||||||||||||||||||
Consolidated Financial Information | ||||||||||||||||||||||
(Unaudited, Thousands of Dollars, Except Unit Data and Per Unit Data) | ||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||||||||
Statement of Income Data: | ||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||
Services revenues | $ | 217,249 | $ | 205,542 | $ | 825,938 | $ | 791,314 | ||||||||||||||
Product sales | 1,709,856 | 988,670 | 5,749,317 | 3,611,747 | ||||||||||||||||||
Total revenues | 1,927,105 | 1,194,212 | 6,575,255 | 4,403,061 | ||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||
Cost of product sales | 1,663,096 | 927,678 | 5,460,520 | 3,350,429 | ||||||||||||||||||
Operating expenses | 138,522 | 123,004 | 529,002 | 486,032 | ||||||||||||||||||
General and administrative expenses | 33,620 | 33,917 | 103,453 | 110,241 | ||||||||||||||||||
Depreciation and amortization expense | 43,932 | 39,149 | 168,286 | 153,802 | ||||||||||||||||||
Total costs and expenses | 1,879,170 | 1,123,748 | 6,261,261 | 4,100,504 | ||||||||||||||||||
Operating income | 47,935 | 70,464 | 313,994 | 302,557 | ||||||||||||||||||
Equity in earnings of joint venture | 4,461 | 2,929 | 11,458 | 10,500 | ||||||||||||||||||
Interest expense, net | (21,037 | ) | (20,221 | ) | (83,681 | ) | (78,280 | ) | ||||||||||||||
Other income (expense), net | 2,408 | 1,052 | (3,291 | ) | 15,934 | |||||||||||||||||
Income before income tax expense | 33,767 | 54,224 | 238,480 | 250,711 | ||||||||||||||||||
Income tax expense | 3,568 | 2,689 | 16,879 | 11,741 | ||||||||||||||||||
Net income | $ | 30,199 | $ | 51,535 | $ | 221,601 | $ | 238,970 | ||||||||||||||
Net income applicable to limited partners | $ | 19,782 | $ | 41,936 | $ | 180,714 | $ | 200,886 | ||||||||||||||
Net income per unit applicable to limited partners: | $ | 0.30 | $ | 0.65 | $ | 2.78 | $ | 3.19 | ||||||||||||||
Weighted average limited partner units outstanding | 66,226,386 | 64,610,549 | 65,018,301 | 62,946,987 | ||||||||||||||||||
EBITDA (Note 1) | $ | 98,736 | $ | 113,594 | $ | 490,447 | $ | 482,793 | ||||||||||||||
Distributable cash flow (Note 1) | $ | 74,739 | $ | 76,854 | $ | 351,263 | $ | 320,226 | ||||||||||||||
December 31, |
December 31, |
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2011 | 2010 | |||||||||||||||||||||
Balance Sheet Data: | ||||||||||||||||||||||
Debt, including current portion (a) | $ | 2,293,030 | $ | 2,137,080 | ||||||||||||||||||
Partners' equity (b) | 2,864,335 | 2,702,700 | ||||||||||||||||||||
Debt-to-capitalization ratio (a) / ((a)+(b)) | 44.5 | % | 44.2 | % |
NuStar Energy L.P. and Subsidiaries | ||||||||||||||||||||||
Consolidated Financial Information - Continued | ||||||||||||||||||||||
(Unaudited, Thousands of Dollars, Except Barrel Data) | ||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||||||||
Segment Data: | ||||||||||||||||||||||
Storage: | ||||||||||||||||||||||
Throughput (barrels/day) | 735,521 | 677,736 | 693,269 | 669,435 | ||||||||||||||||||
Throughput revenues | $ | 21,858 | $ | 19,520 | $ | 80,246 | $ | 75,605 | ||||||||||||||
Storage lease revenues | 126,705 | 113,740 | 486,525 | 444,233 | ||||||||||||||||||
Total revenues | 148,563 | 133,260 | 566,771 | 519,838 | ||||||||||||||||||
Operating expenses | 72,409 | 65,634 | 285,639 | 263,820 | ||||||||||||||||||
Depreciation and amortization expense | 23,081 | 20,067 | 87,737 | 77,071 | ||||||||||||||||||
Segment operating income | $ | 53,073 | $ | 47,559 | $ | 193,395 | $ | 178,947 | ||||||||||||||
Transportation: | ||||||||||||||||||||||
Refined products pipelines throughput (barrels/day) | 528,818 | 531,626 | 514,261 | 529,946 | ||||||||||||||||||
Crude oil pipelines throughput (barrels/day) | 333,899 | 342,417 | 305,890 | 371,726 | ||||||||||||||||||
Total throughput (barrels/day) | 862,717 | 874,043 | 820,151 | 901,672 | ||||||||||||||||||
Revenues | $ | 85,043 | $ | 83,255 | $ | 311,514 | $ | 316,072 | ||||||||||||||
Operating expenses | 29,345 | 28,100 | 114,726 | 116,884 | ||||||||||||||||||
Depreciation and amortization expense | 12,893 | 12,588 | 51,175 | 50,617 | ||||||||||||||||||
Segment operating income | $ | 42,805 | $ | 42,567 | $ | 145,613 | $ | 148,571 | ||||||||||||||
Asphalt and fuels marketing: | ||||||||||||||||||||||
Product sales | $ | 1,710,020 | $ | 989,896 | $ | 5,759,099 | $ | 3,615,890 | ||||||||||||||
Cost of product sales | 1,669,005 | 933,151 | 5,490,384 | 3,371,854 | ||||||||||||||||||
Gross margin | 41,015 | 56,745 | 268,715 | 244,036 | ||||||||||||||||||
Operating expenses | 47,344 | 35,994 | 160,850 | 132,918 | ||||||||||||||||||
Depreciation and amortization expense | 6,131 | 5,003 | 22,636 | 20,257 | ||||||||||||||||||
Segment operating (loss) income | $ | (12,460 | ) | $ | 15,748 | $ | 85,229 | $ | 90,861 | |||||||||||||
Consolidation and intersegment eliminations: | ||||||||||||||||||||||
Revenues | $ | (16,521 | ) | $ | (12,199 | ) | $ | (62,129 | ) | $ | (48,739 | ) | ||||||||||
Cost of product sales | (5,909 | ) | (5,473 | ) | (29,864 | ) | (21,425 | ) | ||||||||||||||
Operating expenses | (10,576 | ) | (6,724 | ) | (32,213 | ) | (27,590 | ) | ||||||||||||||
Total | $ | (36 | ) | $ | (2 | ) | $ | (52 | ) | $ | 276 | |||||||||||
Consolidated Information: | ||||||||||||||||||||||
Revenues | $ | 1,927,105 | $ | 1,194,212 | $ | 6,575,255 | $ | 4,403,061 | ||||||||||||||
Cost of product sales | 1,663,096 | 927,678 | 5,460,520 | 3,350,429 | ||||||||||||||||||
Operating expenses | 138,522 | 123,004 | 529,002 | 486,032 | ||||||||||||||||||
Depreciation and amortization expense | 42,105 | 37,658 | 161,548 | 147,945 | ||||||||||||||||||
Segment operating income | 83,382 | 105,872 | 424,185 | 418,655 | ||||||||||||||||||
General and administrative expenses | 33,620 | 33,917 | 103,453 | 110,241 | ||||||||||||||||||
Other depreciation and amortization expense | 1,827 | 1,491 | 6,738 | 5,857 | ||||||||||||||||||
Consolidated operating income | $ | 47,935 | $ | 70,464 | $ | 313,994 | $ | 302,557 |
NuStar Energy L.P. and Subsidiaries | ||||||||||||||||||||||
Consolidated Financial Information - Continued | ||||||||||||||||||||||
(Unaudited, Thousands of Dollars, Except Per Unit Data) | ||||||||||||||||||||||
Notes: | ||||||||||||||||||||||
1. |
NuStar Energy L.P. utilizes two financial measures, EBITDA and distributable cash flow, which are not defined in United States generally accepted accounting principles. Management uses these financial measures because they are widely accepted financial indicators used by investors to compare partnership performance. In addition, management believes that these measures provide investors an enhanced perspective of the operating performance of the partnership's assets and the cash that the business is generating. Neither EBITDA nor distributable cash flow are intended to represent cash flows for the period, nor are they presented as an alternative to net income. They should not be considered in isolation or as substitutes for a measure of performance prepared in accordance with United States generally accepted accounting principles. | |||||||||||||||||||||
The following is a reconciliation of net income to EBITDA and distributable cash flow: | ||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||||||||
Net income | $ | 30,199 | $ | 51,535 | $ | 221,601 | $ | 238,970 | ||||||||||||||
Plus interest expense, net | 21,037 | 20,221 | 83,681 | 78,280 | ||||||||||||||||||
Plus income tax expense | 3,568 | 2,689 | 16,879 | 11,741 | ||||||||||||||||||
Plus depreciation and amortization expense | 43,932 | 39,149 | 168,286 | 153,802 | ||||||||||||||||||
EBITDA | 98,736 | 113,594 | 490,447 | 482,793 | ||||||||||||||||||
Less equity in earnings of joint venture |
(4,461 | ) | (2,929 | ) | (11,458 | ) | (10,500 | ) | ||||||||||||||
Less interest expense, net | (21,037 | ) | (20,221 | ) | (83,681 | ) | (78,280 | ) | ||||||||||||||
Less reliability capital expenditures | (9,082 | ) | (15,704 | ) | (50,339 | ) | (54,031 | ) | ||||||||||||||
Less income tax expense | (3,568 | ) | (2,689 | ) | (16,879 | ) | (11,741 | ) | ||||||||||||||
Plus distributions from joint venture | 4,977 | 2,125 | 14,374 | 9,625 | ||||||||||||||||||
Mark-to-market impact on hedge transactions (a) | 9,174 | 2,678 | 456 | (17,640 | ) | |||||||||||||||||
Contingent loss adjustment | - | - | 3,250 | - | ||||||||||||||||||
Other non-cash items | - | - | 5,093 | - | ||||||||||||||||||
Distributable cash flow | $ | 74,739 | $ | 76,854 | $ | 351,263 | $ | 320,226 | ||||||||||||||
EBITDA | $ | 98,736 | $ | 113,594 | $ | 490,447 | $ | 482,793 | ||||||||||||||
EBITDA attributable to noncontrolling interest | 29 | - | 415 | - | ||||||||||||||||||
EBITDA attributable to NuStar Energy L.P. | $ | 98,707 | $ | 113,594 | $ | 490,032 | $ | 482,793 | ||||||||||||||
Distributable cash flow | $ | 74,739 | $ | 76,854 | $ | 351,263 | $ | 320,226 | ||||||||||||||
Distributable cash flow attributable to noncontrolling interest | 53 | - | 441 | - | ||||||||||||||||||
Distributable cash flow attributable to NuStar Energy L.P. | $ | 74,686 | $ | 76,854 | $ | 350,822 | $ | 320,226 | ||||||||||||||
General partner's interest in distributable cash flow | 11,598 | 10,160 | 42,956 | 39,531 | ||||||||||||||||||
Limited partners' interest in distributable cash flow | $ | 63,088 | $ | 66,694 | $ | 307,866 | $ | 280,695 | ||||||||||||||
Distributable cash flow per limited partner unit | $ | 0.95 | $ | 1.03 | $ | 4.74 | $ | 4.43 | ||||||||||||||
(a) Distributable cash flow excludes the impact of unrealized mark-to-market gains and losses that arise from valuing certain derivative |
Source:
NuStar Energy, L.P., San Antonio
Investors, Chris Russell, Vice President
Investor Relations: 210-918-3507
or
Media, Mary Rose Brown, Senior Vice President,
Corporate Communications: 210-918-2314
Web site: http://www.nustarenergy.com