News Release
NuStar Energy L.P. Reports Higher EBITDA Results in the Second Quarter of 2015
Net Income and DCF in 2015 YTD Surpass 2014 YTD
Second quarter 2015 distributable cash flow (DCF) from continuing
operations available to limited partners was
The partnership reported second quarter 2015 net income applicable to
limited partners of
Absent a gain related to our
The partnership also announced that its board of directors has declared
a second quarter 2015 distribution of
“Despite an unprecedented amount of rainfall in the
2015 Earnings Guidance
“Due to reduced volume projections for the remainder of the year on
pipelines that serve our
Barron continued, “We have updated our capital spending projections for
2015. Our 2015 strategic capital spending is now expected to be
Second Quarter 2015 Earnings Conference Call Details
A conference call with management is scheduled for
Investors interested in listening to the live presentation or a replay via the internet may access the presentation directly by clicking here or by logging on to NuStar Energy L.P.’s Web site at www.nustarenergy.com.
The presentation will disclose certain non-GAAP financial measures.
Reconciliations of certain of these non-GAAP financial measures to U.S.
GAAP may be found in this press release, with additional reconciliations
located on the Financials page of the Investors section of
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 Energy L.P.’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, such as the partnership’s future performance. 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 and
NuStar Energy L.P. and Subsidiaries |
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Consolidated Financial Information |
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(Unaudited, Thousands of Dollars, Except Unit and Per Unit Data) |
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Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
Statement of Income Data: | |||||||||||||||||||||
Revenues: | |||||||||||||||||||||
Service revenues | $ | 274,581 | $ | 259,562 | $ | 544,554 | $ | 488,900 | |||||||||||||
Product sales | 296,030 | 490,183 | 581,001 | 1,110,058 | |||||||||||||||||
Total revenues | 570,611 | 749,745 | 1,125,555 | 1,598,958 | |||||||||||||||||
Costs and expenses: | |||||||||||||||||||||
Cost of product sales | 281,610 | 473,755 | 544,116 | 1,068,714 | |||||||||||||||||
Operating expenses | 117,138 | 115,537 | 232,785 | 221,602 | |||||||||||||||||
General and administrative expenses | 26,693 | 23,163 | 51,746 | 44,019 | |||||||||||||||||
Depreciation and amortization expense | 52,765 | 47,936 | 105,222 | 94,166 | |||||||||||||||||
Total costs and expenses | 478,206 | 660,391 | 933,869 | 1,428,501 | |||||||||||||||||
Operating income | 92,405 | 89,354 | 191,686 | 170,457 | |||||||||||||||||
Equity in earnings (loss) of joint ventures | — | 3,294 | — | (1,012 | ) | ||||||||||||||||
Interest expense, net | (32,824 | ) | (33,122 | ) | (64,861 | ) | (67,539 | ) | |||||||||||||
Interest income from related party | — | — | — | 1,055 | |||||||||||||||||
Other (expense) income, net | (2,152 | ) | (474 | ) | 60,116 | 3,204 | |||||||||||||||
Income from continuing operations before income tax expense | 57,429 | 59,052 | 186,941 | 106,165 | |||||||||||||||||
Income tax expense | 3,104 | 1,865 | 5,491 | 5,982 | |||||||||||||||||
Income from continuing operations | 54,325 | 57,187 | 181,450 | 100,183 | |||||||||||||||||
(Loss) income from discontinued operations, net of tax | — | (1,788 | ) | 774 | (5,147 | ) | |||||||||||||||
Net income | $ | 54,325 | $ | 55,399 | $ | 182,224 | $ | 95,036 | |||||||||||||
Net income applicable to limited partners | $ | 42,434 | $ | 43,599 | $ | 156,970 | $ | 71,743 | |||||||||||||
Net income (loss) per unit applicable to limited partners: | |||||||||||||||||||||
Continuing operations | $ | 0.54 | $ | 0.58 | $ | 2.00 | $ | 0.98 | |||||||||||||
Discontinued operations | — | (0.02 | ) | 0.01 | (0.06 | ) | |||||||||||||||
Total | $ | 0.54 | $ | 0.56 | $ | 2.01 | $ | 0.92 | |||||||||||||
Weighted-average limited partner units outstanding | 77,886,078 | 77,886,078 | 77,886,078 | 77,886,078 | |||||||||||||||||
EBITDA from continuing operations (Note 1) | $ | 143,018 | $ | 140,110 | $ | 357,024 | $ | 266,815 | |||||||||||||
DCF from continuing operations (Note 1) | $ | 104,932 | $ | 106,321 | $ | 224,452 | $ | 197,033 | |||||||||||||
June 30, | December 31, | ||||||||||||||||||||
2015 | 2014 | 2014 | |||||||||||||||||||
Balance Sheet Data: | |||||||||||||||||||||
Total debt | $ | 3,120,616 | $ | 2,726,629 | $ | 2,826,452 | |||||||||||||||
Partners’ equity | $ | 1,713,073 | $ | 1,809,359 | $ | 1,716,210 | |||||||||||||||
Consolidated debt coverage ratio (Note 2) | 4.3x | 4.0x | 4.0x | ||||||||||||||||||
NuStar Energy L.P. and Subsidiaries |
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Consolidated Financial Information - Continued | |||||||||||||||||||||
(Unaudited, Thousands of Dollars, Except Barrel Data) | |||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
Pipeline: | |||||||||||||||||||||
Refined products pipelines throughput (barrels/day) | 499,333 | 521,391 | 502,838 | 497,315 | |||||||||||||||||
Crude oil pipelines throughput (barrels/day) | 468,431 | 427,122 | 487,246 | 393,457 | |||||||||||||||||
Total throughput (barrels/day) | 967,764 | 948,513 | 990,084 | 890,772 | |||||||||||||||||
Throughput revenues | $ | 122,210 | $ | 117,798 | $ | 246,635 | $ | 220,757 | |||||||||||||
Operating expenses | 36,634 | 38,072 | 71,942 | 69,689 | |||||||||||||||||
Depreciation and amortization expense | 20,756 | 19,490 | 41,233 | 37,842 | |||||||||||||||||
Segment operating income | $ | 64,820 | $ | 60,236 | $ | 133,460 | $ | 113,226 | |||||||||||||
Storage: | |||||||||||||||||||||
Throughput (barrels/day) | 957,452 | 894,194 | 919,075 | 857,967 | |||||||||||||||||
Throughput revenues | $ | 34,623 | $ | 31,216 | $ | 66,314 | $ | 58,686 | |||||||||||||
Storage lease revenues | 123,019 | 113,770 | 241,662 | 218,866 | |||||||||||||||||
Total revenues | 157,642 | 144,986 | 307,976 | 277,552 | |||||||||||||||||
Operating expenses | 74,004 | 69,091 | 146,632 | 134,358 | |||||||||||||||||
Depreciation and amortization expense | 29,887 | 25,888 | 59,615 | 51,180 | |||||||||||||||||
Segment operating income | $ | 53,751 | $ | 50,007 | $ | 101,729 | $ | 92,014 | |||||||||||||
Fuels Marketing: | |||||||||||||||||||||
Product sales and other revenue | $ | 297,589 | $ | 493,651 | $ | 584,023 | $ | 1,114,622 | |||||||||||||
Cost of product sales | 285,862 | 477,830 | 552,080 | 1,077,305 | |||||||||||||||||
Gross margin | 11,727 | 15,821 | 31,943 | 37,317 | |||||||||||||||||
Operating expenses | 9,077 | 10,996 | 19,368 | 22,927 | |||||||||||||||||
Depreciation and amortization expense | — | 4 | — | 11 | |||||||||||||||||
Segment operating income | $ | 2,650 | $ | 4,821 | $ | 12,575 | $ | 14,379 | |||||||||||||
Consolidation and Intersegment Eliminations: | |||||||||||||||||||||
Revenues | $ | (6,830 | ) | $ | (6,690 | ) | $ | (13,079 | ) | $ | (13,973 | ) | |||||||||
Cost of product sales | (4,252 | ) | (4,075 | ) | (7,964 | ) | (8,591 | ) | |||||||||||||
Operating expenses | (2,577 | ) | (2,622 | ) | (5,157 | ) | (5,372 | ) | |||||||||||||
Total | $ | (1 | ) | $ | 7 | $ | 42 | $ | (10 | ) | |||||||||||
Consolidated Information: | |||||||||||||||||||||
Revenues | $ | 570,611 | $ | 749,745 | $ | 1,125,555 | $ | 1,598,958 | |||||||||||||
Cost of product sales | 281,610 | 473,755 | 544,116 | 1,068,714 | |||||||||||||||||
Operating expenses | 117,138 | 115,537 | 232,785 | 221,602 | |||||||||||||||||
Depreciation and amortization expense | 50,643 | 45,382 | 100,848 | 89,033 | |||||||||||||||||
Segment operating income | 121,220 | 115,071 | 247,806 | 219,609 | |||||||||||||||||
General and administrative expenses | 26,693 | 23,163 | 51,746 | 44,019 | |||||||||||||||||
Other depreciation and amortization expense | 2,122 | 2,554 | 4,374 | 5,133 | |||||||||||||||||
Consolidated operating income | $ | 92,405 | $ | 89,354 | $ | 191,686 | $ | 170,457 | |||||||||||||
Consolidated
Financial Information - Continued
(Unaudited, Thousands of
Dollars, Except Per Unit Data)
Notes:
(1)
The following is a reconciliation of income from continuing operations to EBITDA from continuing operations and DCF from continuing operations:
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
Income from continuing operations | $ | 54,325 | $ | 57,187 | $ | 181,450 | $ | 100,183 | |||||||||||||
Plus interest expense, net and interest income from related party |
32,824 | 33,122 | 64,861 | 66,484 | |||||||||||||||||
Plus income tax expense | 3,104 | 1,865 | 5,491 | 5,982 | |||||||||||||||||
Plus depreciation and amortization expense |
52,765 | 47,936 | 105,222 | 94,166 | |||||||||||||||||
EBITDA from continuing operations | 143,018 | 140,110 | 357,024 | 266,815 | |||||||||||||||||
Equity in (earnings) loss of joint ventures | — | (3,294 | ) | — | 1,012 | ||||||||||||||||
Interest expense, net and interest income from related party |
(32,824 | ) | (33,122 | ) | (64,861 | ) | (66,484 | ) | |||||||||||||
Reliability capital expenditures | (6,029 | ) | (7,239 | ) | (12,827 | ) | (11,998 | ) | |||||||||||||
Income tax expense | (3,104 | ) | (1,865 | ) | (5,491 | ) | (5,982 | ) | |||||||||||||
Distributions from joint ventures | — | 728 | 2,500 | 3,094 | |||||||||||||||||
Other items (a) | 2,431 | 4,311 | (52,214 | ) | 3,869 | ||||||||||||||||
Mark-to-market impact of hedge transactions (b) | 1,440 | 6,692 | 321 | 6,707 | |||||||||||||||||
DCF from continuing operations | $ | 104,932 | $ | 106,321 | $ | 224,452 | $ | 197,033 | |||||||||||||
Less DCF from continuing operations available to general partner |
12,766 | 12,766 | 25,532 | 25,532 | |||||||||||||||||
DCF from continuing operations available to limited partners |
$ | 92,166 | $ | 93,555 | $ | 198,920 | $ | 171,501 | |||||||||||||
DCF from continuing operations per limited partner unit |
$ | 1.18 | $ | 1.20 | $ | 2.55 | $ | 2.20 | |||||||||||||
(a) Other items consist of a net increase in deferred revenue associated
with throughput deficiency payments and construction reimbursements. For
the six months ended
(b) DCF from continuing operations excludes the impact of unrealized mark-to-market gains and losses that arise from valuing certain derivative contracts, as well as the associated hedged inventory. The gain or loss associated with these contracts is realized in DCF from continuing operations when the contracts are settled.
Consolidated
Financial Information - Continued
(Unaudited, Thousands of
Dollars, Except Per Unit Data)
Notes (continued):
The following is a reconciliation of net income and net income per unit to adjusted net income applicable to limited partners and adjusted net income per unit:
Six Months Ended June 30, 2015 |
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Net income / net income per unit | $ | 182,224 | $ | 2.01 | |||||||
Gain on Linden terminal acquisition | (56,277 | ) | (0.71 | ) | |||||||
Adjusted net income | 125,947 | ||||||||||
GP interest and incentive | (24,129 | ) | |||||||||
Adjusted net income applicable to limited partners / adjusted net income per unit | $ | 101,818 | $ | 1.30 | |||||||
The following is a reconciliation of EBITDA from continuing operations to adjusted EBITDA from continuing operations:
Six Months Ended |
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EBITDA from continuing operations | $ | 357,024 | ||||
Gain on Linden terminal acquisition | (56,277 | ) | ||||
Adjusted EBITDA from continuing operations | $ | 300,747 | ||||
The following is a reconciliation of projected incremental operating
income to projected incremental EBITDA for the year ended
Pipeline Segment | Storage Segment | ||||||||
Projected incremental operating income | $ | 18,000 - 33,000 | $ | 10,000 - 25,000 | |||||
Plus projected incremental depreciation and amortization expense | 7,000 - 12,000 | 10,000 - 15,000 | |||||||
Projected incremental EBITDA | $ | 25,000 - 45,000 | $ | 20,000 - 40,000 | |||||
The following is a reconciliation of projected operating income to
projected EBITDA for the year ended
Fuels Marketing |
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Projected operating income | $ | 20,000 - 30,000 | |||
Plus projected depreciation and amortization expense | — | ||||
Projected EBITDA | $ | 20,000 - 30,000 | |||
(2) The consolidated debt coverage ratio is calculated as consolidated
debt to consolidated EBITDA, each as defined in our
View source version on businesswire.com: http://www.businesswire.com/news/home/20150724005346/en/
Source:
NuStar Energy, L.P., San Antonio
Investors, Chris Russell,
Treasurer and Vice President Investor Relations
Investor Relations:
210-918-3507
or
Media, Mary Rose Brown, Executive Vice
President,
Corporate Communications: 210-918-2314
Web site: http://www.nustarenergy.com