News Release
NuStar Energy L.P. Reports Highest First Quarter EBITDA in Partnership’s History
Highest First Quarter DCF and Distribution Coverage Since 2008
Covers Distribution for Fourth Consecutive Quarter
South Texas Crude Oil Pipeline Expansion Leads to Record Quarterly Eagle Ford Shale Throughput Volumes
Construction Completed on Mt. Belvieu 12”
The partnership reported first quarter 2015 net income applicable to
limited partners of
The partnership also announced that its board of directors has declared
a first quarter 2015 distribution of
“The South Texas Crude Oil Pipeline expansion led to record, and higher
than anticipated, Eagle Ford throughput volumes during the quarter,”
said
“These record Eagle Ford crude oil throughput volumes and stronger than expected margins in our fuels marketing segment helped us attain a quarterly distribution coverage ratio of 1.25 times.”
Internal Growth Project Update
Barron went on to say, “We have completed construction on NuStar’s
12-inch pipeline between
2015 Earnings Guidance
“Due to higher than expected first quarter throughputs for our South
Texas Crude Oil Pipeline System, we now anticipate our pipeline segment
EBITDA to be
Barron continued, “With regard to capital spending for 2015, our
projected strategic capital spending remains at
First 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 | ||||||||||
| Consolidated Financial Information | ||||||||||
| (Unaudited, Thousands of Dollars, Except Unit and Per Unit Data) | ||||||||||
| Three Months Ended March 31, | ||||||||||
| 2015 | 2014 | |||||||||
| Statement of Income Data: | ||||||||||
| Revenues: | ||||||||||
| Service revenues | $ | 269,973 | $ | 229,338 | ||||||
| Product sales | 284,971 | 619,875 | ||||||||
| Total revenues | 554,944 | 849,213 | ||||||||
| Costs and expenses: | ||||||||||
| Cost of product sales | 262,506 | 594,959 | ||||||||
| Operating expenses | 115,647 | 106,065 | ||||||||
| General and administrative expenses | 25,053 | 20,856 | ||||||||
| Depreciation and amortization expense | 52,457 | 46,230 | ||||||||
| Total costs and expenses | 455,663 | 768,110 | ||||||||
| Operating income | 99,281 | 81,103 | ||||||||
| Equity in loss of joint ventures | — | (4,306 | ) | |||||||
| Interest expense, net | (32,037 | ) | (34,417 | ) | ||||||
| Interest income from related party | — | 1,055 | ||||||||
| Other income, net | 62,268 | 3,678 | ||||||||
| Income from continuing operations before income tax expense | 129,512 | 47,113 | ||||||||
| Income tax expense | 2,387 | 4,117 | ||||||||
| Income from continuing operations | 127,125 | 42,996 | ||||||||
| Income (loss) from discontinued operations, net of tax | 774 | (3,359 | ) | |||||||
| Net income | $ | 127,899 | $ | 39,637 | ||||||
| Net income applicable to limited partners | $ | 114,536 | $ | 28,144 | ||||||
| Net income (loss) per unit applicable to limited partners: | ||||||||||
| Continuing operations | $ | 1.46 | $ | 0.40 | ||||||
| Discontinued operations | 0.01 | (0.04 | ) | |||||||
| Total | $ | 1.47 | $ | 0.36 | ||||||
| Weighted-average limited partner units outstanding | 77,886,078 | 77,886,078 | ||||||||
| EBITDA from continuing operations (Note 1) | $ | 214,006 | $ | 126,705 | ||||||
| DCF from continuing operations (Note 1) | $ | 119,520 | $ | 90,712 | ||||||
|
March 31, |
December 31, |
|||||||||
| Balance Sheet Data: | ||||||||||
| Total debt | $ | 3,033,413 | $ | 2,826,452 | ||||||
| Partners’ equity | $ | 1,725,957 | $ | 1,716,210 | ||||||
| Consolidated debt coverage ratio (Note 2) |
4.1 |
x |
4.0 |
x |
||||||
| NuStar Energy L.P. and Subsidiaries | ||||||||||
| Consolidated Financial Information - Continued | ||||||||||
| (Unaudited, Thousands of Dollars, Except Barrel Data) | ||||||||||
| Three Months Ended March 31, | ||||||||||
| 2015 | 2014 | |||||||||
| Pipeline: | ||||||||||
| Refined products pipelines throughput (barrels/day) | 506,381 | 472,971 | ||||||||
| Crude oil pipelines throughput (barrels/day) | 506,272 | 359,418 | ||||||||
| Total throughput (barrels/day) | 1,012,653 | 832,389 | ||||||||
| Throughput revenues | $ | 124,425 | $ | 102,959 | ||||||
| Operating expenses | 35,308 | 31,617 | ||||||||
| Depreciation and amortization expense | 20,477 | 18,352 | ||||||||
| Segment operating income | $ | 68,640 | $ | 52,990 | ||||||
| Storage: | ||||||||||
| Throughput (barrels/day) | 880,271 | 821,338 | ||||||||
| Throughput revenues | $ | 31,691 | $ | 27,470 | ||||||
| Storage lease revenues | 118,643 | 105,096 | ||||||||
| Total revenues | 150,334 | 132,566 | ||||||||
| Operating expenses | 72,628 | 65,267 | ||||||||
| Depreciation and amortization expense | 29,728 | 25,292 | ||||||||
| Segment operating income | $ | 47,978 | $ | 42,007 | ||||||
| Fuels Marketing: | ||||||||||
| Product sales and other revenue | $ | 286,434 | $ | 620,971 | ||||||
| Cost of product sales | 266,218 | 599,475 | ||||||||
| Gross margin | 20,216 | 21,496 | ||||||||
| Operating expenses | 10,291 | 11,931 | ||||||||
| Depreciation and amortization expense | — | 7 | ||||||||
| Segment operating income | $ | 9,925 | $ | 9,558 | ||||||
| Consolidation and Intersegment Eliminations: | ||||||||||
| Revenues | $ | (6,249 | ) | $ | (7,283 | ) | ||||
| Cost of product sales | (3,712 | ) | (4,516 | ) | ||||||
| Operating expenses | (2,580 | ) | (2,750 | ) | ||||||
| Total | $ | 43 | $ | (17 | ) | |||||
| Consolidated Information: | ||||||||||
| Revenues | $ | 554,944 | $ | 849,213 | ||||||
| Cost of product sales | 262,506 | 594,959 | ||||||||
| Operating expenses | 115,647 | 106,065 | ||||||||
| Depreciation and amortization expense | 50,205 | 43,651 | ||||||||
| Segment operating income | 126,586 | 104,538 | ||||||||
| General and administrative expenses | 25,053 | 20,856 | ||||||||
| Other depreciation and amortization expense | 2,252 | 2,579 | ||||||||
| Consolidated operating income | $ | 99,281 | $ | 81,103 | ||||||
|
NuStar Energy L.P. and Subsidiaries |
|
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 March 31, | ||||||||||
| 2015 | 2014 | |||||||||
| Income from continuing operations | $ | 127,125 | $ | 42,996 | ||||||
| Plus interest expense, net and interest income from related party | 32,037 | 33,362 | ||||||||
| Plus income tax expense | 2,387 | 4,117 | ||||||||
| Plus depreciation and amortization expense | 52,457 | 46,230 | ||||||||
| EBITDA from continuing operations | 214,006 | 126,705 | ||||||||
| Equity in loss of joint ventures | — | 4,306 | ||||||||
| Interest expense, net and interest income from related party | (32,037 | ) | (33,362 | ) | ||||||
| Reliability capital expenditures | (6,798 | ) | (4,759 | ) | ||||||
| Income tax expense | (2,387 | ) | (4,117 | ) | ||||||
| Distributions from joint ventures | 2,500 | 2,366 | ||||||||
| Other items (a) | (54,645 | ) | (442 | ) | ||||||
| Mark-to-market impact of hedge transactions (b) | (1,119 | ) | 15 | |||||||
| DCF from continuing operations | $ | 119,520 | $ | 90,712 | ||||||
| Less DCF from continuing operations available to general partner | 12,766 | 12,766 | ||||||||
| DCF from continuing operations available to limited partners | $ | 106,754 | $ | 77,946 | ||||||
| DCF from continuing operations per limited partner unit | $ | 1.37 | $ | 1.00 | ||||||
(a) Other items for the three 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.
|
NuStar Energy L.P. and Subsidiaries |
|
Consolidated Financial Information - Continued |
|
(Unaudited, Thousands of Dollars, Except Per Unit Data) |
Notes (continued):
The following is a reconciliation of net income and EPU to adjusted net income applicable to limited partners and Adjusted EPU:
|
Three Months Ended March 31, 2015 |
||||||||||
| Net income / EPU | $ | 127,899 | $ | 1.47 | ||||||
| Gain on Linden terminal acquisition | (56,277 | ) | (0.71 | ) | ||||||
| Adjusted net income | 71,622 | |||||||||
| GP interest and incentive | (12,237 | ) | ||||||||
| Adjusted net income applicable to limited partners / Adjusted EPU | $ | 59,385 | $ | 0.76 | ||||||
The following is a reconciliation of EBITDA from continuing operations to adjusted EBITDA from continuing operations:
|
Three Months Ended |
|||||
| EBITDA from continuing operations | $ | 214,006 | |||
| Gain on Linden terminal acquisition | (56,277 | ) | |||
| Adjusted EBITDA from continuing operations | $ | 157,729 | |||
The following is a reconciliation of projected annual operating income to projected annual EBITDA for a certain project in the pipeline segment:
|
Mont Belvieu |
||||
| Projected operating income | $ | 15,000 | ||
| Plus projected depreciation and amortization expense | 8,000 | |||
| Projected EBITDA | $ | 23,000 | ||
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 | $ | 25,000 - 40,000 | $ | 3,000 - 15,000 | |||||
| Plus projected incremental depreciation and amortization expense | 10,000 - 15,000 | 7,000 - 15,000 | |||||||
| Projected incremental EBITDA | $ | 35,000 - 55,000 | $ | 10,000 - 30,000 | |||||
The following is a reconciliation of projected operating income to
projected EBITDA for the year ended
| Fuels Marketing Segment | ||||
| 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
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
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210-918-INVR (4687)
