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NuStar Energy L.P. Reports Solid Second Quarter of 2022 Earnings Results

Permian Crude System Volumes Hit Record-Breaking Average of 522,000 Barrels Per Day/Expect to Exit 2022 between 560,000 to 570,000 Barrels Per Day

Refined Product Volumes Continue to Track at Pre-Pandemic Levels

West Coast Renewable Fuels Network Continues to Grow with Two More Projects in Service

Contract with Trafigura for Services on Corpus Christi Crude System Extended to December 2024

Lower Debt Balances Result in Significant Improvement to Debt Metrics

SAN ANTONIO--(BUSINESS WIRE)--Aug. 4, 2022-- NuStar Energy L.P. (NYSE: NS) today announced solid results for the second quarter of 2022 fueled by strong volumes in its Permian Crude System.

NuStar reported net income of $59 million for the second quarter of 2022, or $0.20 per unit, compared to net income of $63 million, or $0.25 per unit, for the second quarter of 2021.

NuStar also reported earnings before interest, taxes, depreciation and amortization (EBITDA) of $175 million for the second quarter of 2022, compared to second quarter of 2021 EBITDA of $189 million.

“On an ‘apples-to-apples’ basis, excluding the contribution of the Eastern U.S. terminals we sold in October, and the Point Tupper terminal we sold in April, our second quarter 2022 EBITDA was comparable to the second quarter of 2021 despite customer transitions and related tank maintenance at our St. James terminal, and the timing of minimum volume commitment settlements at our Corpus Christi North Beach terminal,” said NuStar President and CEO Brad Barron.

Debt Metrics Improve Significantly

“We are pleased that our recent divestitures have enabled us to continue to move toward our stated goal of significantly improving our debt metrics and building our financial strength and flexibility,” said Barron.

“Thanks to the progress we have made in lowering our debt balance, our interest expense in the second quarter of 2022 was $3 million lower than in the second quarter of 2021, and we had over $900 million available on our $1.0 billion unsecured revolving credit facility.

“We also ended the second quarter of 2022 with a debt-to-EBITDA ratio of 3.93 times, which is substantially better than our ratio of 4.27 times at the end of the second quarter of 2021, and we expect to continue to improve that ratio through the end of the year.

“And our distribution coverage ratio to common limited partners was a strong 1.88 times for the second quarter of 2022,” said Barron.

Distributable cash flow (DCF) available to common limited partners was $83 million for the second quarter of 2022, compared to DCF of $97 million in the second quarter of 2021. Barron noted that the decline in DCF was also largely a result of NuStar’s recent divestitures, which helped NuStar strengthen its balance sheet.

Permian Crude System Hits Record-Breaking Volumes

NuStar’s Permian Crude System’s volumes grew to a record-breaking average of 522,000 barrels per day (BPD) in the second quarter of 2022, an increase of 16 percent over second quarter 2021 volumes and an increase of 2 percent over the first quarter of 2022.

“While overall U.S. oil production has faced supply chain and other challenges this year, our top-tier Permian producers have continued to successfully execute on their drilling plans,” said Barron. “The steady, strong volume growth we saw in the first half of 2022 and continue to see ramping up this quarter is a testament to our producers and the quality and strength of our acreage.”

Barron mentioned that the Permian Crude System’s monthly average in June was up to nearly 535,000 BPD, and in July, its volumes continued to grow, rising to an average of 555,000 BPD.

“Because of the growth we have seen so far this year, and what we expect for the rest of the year, we continue to expect to exit 2022 between 560,000 to 570,000 BPD, or about 10 percent above our 2021 exit, based on our producers’ drilling plans,” Barron added.

Refined Product Volumes Continue to Track at Pre-Pandemic Levels

Barron stated that while some short-term operational issues at customer refineries reduced NuStar’s second quarter of 2022 volumes compared to the second quarter of 2021, its refined product volumes this past quarter were up compared to the first quarter of 2022.

“Our volumes continue to track at pre-pandemic levels, reflecting the strength of our assets and the stability of demand in the markets we serve across the mid-Continent and throughout Texas,” said Barron. “In addition, our Northern Mexico refined products supply system continues to perform well, with volumes above our average for 2021, and second quarter 2022 throughput up 20 percent compared to the second quarter of 2021.”

West Coast Renewable Fuels Network Continues to Grow

Barron once again highlighted the growth of NuStar’s West Coast Renewable Fuels Network, which plays an integral role in facilitating the low-carbon renewable fuels that significantly reduce emissions from transportation.

“We expect our West Coast region’s contribution to continue to grow in the second half of 2022 from two more renewable fuel projects we recently brought into service, which increase our renewable diesel storage capacity and augment our ethanol transportation logistics capabilities at our Stockton, California facility.

“Those two projects should further solidify the significant role that NuStar plays in facilitating California’s transition to low-carbon renewable fuels, where we already handle 87 percent of California’s sustainable aviation fuel; 21 percent of the state’s renewable diesel volumes; 13 percent of its ethanol; and 5 percent of its biodiesel,” said Barron.

Contract with Trafigura for Services on Corpus Christi Crude System Extended to December 2024

Barron commented that throughputs on NuStar’s Corpus Christi Crude System averaged around 290,000 BPD in the second quarter of 2022, which is slightly below its minimum volume commitments for the system, but that average volumes rose to almost 340,000 BPD in July, which is comparable with first quarter 2022 average throughputs.

“We are also pleased to announce that we reached an agreement with Trafigura to extend the term of our contract for transportation, storage and export services on our Corpus Christi Crude System from mid-2023 for an additional 18 months, to December 31, 2024, with two one-year extensions.

“As you will recall, in 2019 we completed projects that made NuStar one of the early movers transporting Permian Basin WTI from Cactus II and Grey Oak through our systems in South Texas for Trafigura, for regional supply and for export from Corpus Christi. By extending this contract, we are building on an established relationship that facilitates production of the refined products on the Gulf Coast and provides export of the U.S. crude oil to supply locations around the globe,” said Barron.

Full-Year Guidance

NuStar Executive Vice President and Chief Financial Officer Tom Shoaf also gave full-year net income and EBITDA guidance for 2022.

“We expect to generate full-year 2022 net income in the range of $193 to $226 million and continue to expect to generate full-year 2022 adjusted EBITDA in the range of $700 to $750 million,” said Shoaf.

Shoaf added that NuStar continues to plan to spend $115 to $145 million in strategic capital in 2022.

“We still expect to allocate about $60 million to growing our Permian system and plan to spend about $10 million to expand our West Coast Renewable Fuels Network,” said Shoaf. “In addition, we continue to expect to spend between $35 and $45 million on reliability in 2022.”

Barron then provided an update on NuStar’s optimization initiative that was kicked off earlier this year with the goal of making meaningful reductions in NuStar’s expenses and capital spending to increase the company’s free cash flow in 2022 and beyond.

“In May, we told you we had identified over $50 million in reductions across 2022 and 2023,” said Barron. “And I am happy to report that total is now up to almost $60 million. We have successfully reduced our full-year 2022 capital spending and expenses by almost $20 million and our 2023 spending by over $40 million. By focusing on our spending, we are mitigating the impact of inflation and increasing our free cash flows, so that NuStar is solidly positioned for the challenges and opportunities we see in 2023 and beyond,” Barron concluded.

Conference Call Details

A conference call with management is scheduled for 9:00 a.m. CT on Thursday, August 4, 2022. The partnership plans to discuss the second quarter 2022 earnings results, which will be released earlier that day. Persons interested in Q&A participation may pre-register for the conference call and obtain a dial-in number and passcode at https://register.vevent.com/register/BI551c68c87b4e4d8db8b4cef5569668c5. Persons interested in listen-only participation may access the conference call directly at https://edge.media-server.com/mmc/p/n66bhyhc. A recorded version will be available under the same link two hours after the conclusion of the conference call.

The conference call may also be accessed through the “Investors” section of NuStar Energy L.P.’s website at https://investor.nustarenergy.com.

NuStar Energy L.P., a publicly traded master limited partnership based in San Antonio, Texas, is one of the largest independent liquids terminal and pipeline operators in the nation. NuStar currently has approximately 10,000 miles of pipeline and 63 terminal and storage facilities that store and distribute crude oil, refined products, renewable fuels, ammonia and specialty liquids. The partnership’s combined system has approximately 49 million barrels of storage capacity, and NuStar has operations in the United States and Mexico. For more information, visit NuStar Energy L.P.’s website at www.nustarenergy.com and its Sustainability page at https://sustainability.nustarenergy.com/.

Cautionary Statement Regarding Forward-Looking Statements

This press release includes, and the related conference call will include, forward-looking statements regarding future events and expectations, such as NuStar’s future performance, plans and expenditures. All forward-looking statements are based on NuStar’s beliefs as well as assumptions made by and information currently available to NuStar. These statements reflect NuStar’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 2021 annual report on Form 10-K and subsequent filings with the Securities and Exchange Commission. Actual results may differ materially from those described in the forward-looking statements. Except as required by law, NuStar does not intend, or undertake any obligation, to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

NuStar Energy L.P. and Subsidiaries

Consolidated Financial Information

(Unaudited, Thousands of Dollars, Except Unit, Per Unit and Ratio Data)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Statement of Income Data:

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

Service revenues

$

278,067

 

 

$

300,788

 

 

$

543,372

 

 

$

572,671

 

Product sales

 

152,090

 

 

 

126,305

 

 

 

296,648

 

 

 

216,068

 

Total revenues

 

430,157

 

 

 

427,093

 

 

 

840,020

 

 

 

788,739

 

Costs and expenses:

 

 

 

 

 

 

 

Costs associated with service revenues:

 

 

 

 

 

 

 

Operating expenses

 

94,948

 

 

 

100,493

 

 

 

181,350

 

 

 

187,780

 

Depreciation and amortization expense

 

62,240

 

 

 

68,964

 

 

 

125,543

 

 

 

137,382

 

Total costs associated with service revenues

 

157,188

 

 

 

169,457

 

 

 

306,893

 

 

 

325,162

 

Costs associated with product sales

 

134,178

 

 

 

112,641

 

 

 

260,893

 

 

 

193,754

 

Impairment loss

 

 

 

 

 

 

 

46,122

 

 

 

 

General and administrative expenses

 

27,909

 

 

 

27,477

 

 

 

54,980

 

 

 

51,969

 

Other depreciation and amortization expense

 

1,823

 

 

 

1,913

 

 

 

3,647

 

 

 

3,960

 

Total costs and expenses

 

321,098

 

 

 

311,488

 

 

 

672,535

 

 

 

574,845

 

Operating income

 

109,059

 

 

 

115,605

 

 

 

167,485

 

 

 

213,894

 

Interest expense, net

 

(50,941

)

 

 

(53,780

)

 

 

(100,759

)

 

 

(108,698

)

Other income, net

 

2,012

 

 

 

2,896

 

 

 

5,683

 

 

 

3,294

 

Income before income tax expense

 

60,130

 

 

 

64,721

 

 

 

72,409

 

 

 

108,490

 

Income tax expense

 

931

 

 

 

1,338

 

 

 

898

 

 

 

2,850

 

Net income

$

59,199

 

 

$

63,383

 

 

$

71,511

 

 

$

105,640

 

 

 

 

 

 

 

 

 

Basic and diluted net income (loss) per common unit

$

0.20

 

 

$

0.25

 

 

$

(0.02

)

 

$

0.30

 

Basic and diluted weighted-average common units outstanding

 

110,306,641

 

 

 

109,529,658

 

 

 

110,242,201

 

 

 

109,518,004

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Data (Note 1):

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income

$

57,635

 

 

$

63,383

 

 

$

114,925

 

 

$

105,640

 

Adjusted net income per common unit

$

0.19

 

 

$

0.25

 

 

$

0.38

 

 

$

0.30

 

EBITDA

$

175,134

 

 

$

189,378

 

 

$

302,358

 

 

$

358,530

 

Adjusted EBITDA

$

173,570

 

 

$

189,378

 

 

$

346,916

 

 

$

358,530

 

DCF

$

83,002

 

 

$

97,375

 

 

$

174,060

 

 

$

177,920

 

Distribution coverage ratio

1.88x

 

 

2.22x

 

 

1.97x

 

 

2.03x

 

 

For the Four Quarters Ended June 30,

 

2022

 

2021

Consolidated Debt Coverage Ratio

3.93x

 

4.27x

NuStar Energy L.P. and Subsidiaries

Consolidated Financial Information - Continued

(Unaudited, Thousands of Dollars, Except Barrel Data)

   

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Pipeline:

 

 

 

 

 

 

 

 

 

Crude oil pipelines throughput (barrels/day)

 

1,220,758

 

 

 

1,244,215

 

 

 

1,264,678

 

 

 

1,173,166

 

Refined products and ammonia pipelines throughput (barrels/day)

 

582,182

 

 

 

606,973

 

 

 

572,767

 

 

 

558,121

 

Total throughput (barrels/day)

 

1,802,940

 

 

 

1,851,188

 

 

 

1,837,445

 

 

 

1,731,287

 

 

 

 

 

 

 

 

 

 

 

Throughput and other revenues

$

200,565

 

 

$

192,906

 

 

$

389,248

 

 

$

362,134

 

Operating expenses

 

55,170

 

 

 

51,404

 

 

 

103,273

 

 

 

96,459

 

Depreciation and amortization expense

 

44,442

 

 

 

44,990

 

 

 

89,270

 

 

 

89,784

 

Segment operating income

$

100,953

 

 

$

96,512

 

 

$

196,705

 

 

$

175,891

 

Storage:

 

 

 

 

 

 

 

 

 

Throughput (barrels/day)

 

396,262

 

 

 

385,790

 

 

 

396,034

 

 

 

393,006

 

 

 

 

 

 

 

 

 

 

 

Throughput terminal revenues

$

30,929

 

 

$

35,143

 

 

$

57,370

 

 

$

59,937

 

Storage terminal revenues

 

57,854

 

 

 

84,105

 

 

 

119,334

 

 

 

167,885

 

Total revenues

 

88,783

 

 

 

119,248

 

 

 

176,704

 

 

 

227,822

 

Operating expenses

 

39,778

 

 

 

49,089

 

 

 

78,077

 

 

 

91,321

 

Depreciation and amortization expense

 

17,798

 

 

 

23,974

 

 

 

36,273

 

 

 

47,598

 

Impairment loss

 

 

 

 

 

 

 

46,122

 

 

 

 

Segment operating income

$

31,207

 

 

$

46,185

 

 

$

16,232

 

 

$

88,903

 

Fuels Marketing:

 

 

 

 

 

 

 

 

 

Product sales

$

140,809

 

 

$

114,939

 

 

$

274,069

 

 

$

198,794

 

Cost of goods

 

133,741

 

 

 

112,063

 

 

 

259,864

 

 

 

194,466

 

Gross margin

 

7,068

 

 

 

2,876

 

 

 

14,205

 

 

 

4,328

 

Operating expenses

 

437

 

 

 

578

 

 

 

1,030

 

 

 

(701

)

Segment operating income

$

6,631

 

 

$

2,298

 

 

$

13,175

 

 

$

5,029

 

Consolidation and Intersegment Eliminations:

 

 

 

 

 

 

 

 

 

Revenues

$

 

 

$

 

 

$

(1

)

 

$

(11

)

Cost of goods

 

 

 

 

 

 

 

(1

)

 

 

(11

)

Total

$

 

 

$

 

 

$

 

 

$

 

Consolidated Information:

 

 

 

 

 

 

 

 

 

Revenues

$

430,157

 

 

$

427,093

 

 

$

840,020

 

 

$

788,739

 

Costs associated with service revenues:

 

 

 

 

 

 

 

 

 

Operating expenses

 

94,948

 

 

 

100,493

 

 

 

181,350

 

 

 

187,780

 

Depreciation and amortization expense

 

62,240

 

 

 

68,964

 

 

 

125,543

 

 

 

137,382

 

Total costs associated with service revenues

 

157,188

 

 

 

169,457

 

 

 

306,893

 

 

 

325,162

 

Costs associated with product sales

 

134,178

 

 

 

112,641

 

 

 

260,893

 

 

 

193,754

 

Impairment loss

 

 

 

 

 

 

 

46,122

 

 

 

 

Segment operating income

 

138,791

 

 

 

144,995

 

 

 

226,112

 

 

 

269,823

 

General and administrative expenses

 

27,909

 

 

 

27,477

 

 

 

54,980

 

 

 

51,969

 

Other depreciation and amortization expense

 

1,823

 

 

 

1,913

 

 

 

3,647

 

 

 

3,960

 

Consolidated operating income

$

109,059

 

 

$

115,605

 

 

$

167,485

 

 

$

213,894

 

NuStar Energy L.P. and Subsidiaries
Reconciliation of Non-GAAP Financial Information
(Unaudited, Thousands of Dollars, Except Ratio Data)

Note 1: NuStar Energy L.P. utilizes financial measures, such as earnings before interest, taxes, depreciation and amortization (EBITDA), distributable cash flow (DCF) and distribution coverage ratio, which are not defined in U.S. generally accepted accounting principles (GAAP). Management believes these financial measures provide useful information to investors and other external users of our financial information because (i) they provide additional information about the operating performance of the partnership’s assets and the cash the business is generating, (ii) investors and other external users of our financial statements benefit from having access to the same financial measures being utilized by management and our board of directors when making financial, operational, compensation and planning decisions and (iii) they highlight the impact of significant transactions. We may also adjust these measures to enhance the comparability of our performance across periods.

Our board of directors and management use EBITDA and/or DCF when assessing the following: (i) the performance of our assets, (ii) the viability of potential projects, (iii) our ability to fund distributions, (iv) our ability to fund capital expenditures and (v) our ability to service debt. In addition, our board of directors uses EBITDA, DCF and a distribution coverage ratio, which is calculated based on DCF, as some of the factors in its compensation determinations. DCF is a financial indicator used by the master limited partnership (MLP) investment community to compare partnership performance. DCF is used by the MLP investment community, in part, because the value of a partnership unit is partially based on its yield, and its yield is based on the cash distributions a partnership can pay its unitholders.

None of these financial measures are 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 GAAP.

The following is a reconciliation of net income to EBITDA, DCF and distribution coverage ratio.

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Net income

$

59,199

 

 

$

63,383

 

 

$

71,511

 

 

$

105,640

 

Interest expense, net

 

50,941

 

 

 

53,780

 

 

 

100,759

 

 

 

108,698

 

Income tax expense

 

931

 

 

 

1,338

 

 

 

898

 

 

 

2,850

 

Depreciation and amortization expense

 

64,063

 

 

 

70,877

 

 

 

129,190

 

 

 

141,342

 

EBITDA

 

175,134

 

 

 

189,378

 

 

 

302,358

 

 

 

358,530

 

Interest expense, net

 

(50,941

)

 

 

(53,780

)

 

 

(100,759

)

 

 

(108,698

)

Reliability capital expenditures

 

(6,696

)

 

 

(8,943

)

 

 

(13,405

)

 

 

(17,432

)

Income tax expense

 

(931

)

 

 

(1,338

)

 

 

(898

)

 

 

(2,850

)

Long-term incentive equity awards (a)

 

2,734

 

 

 

2,720

 

 

 

5,563

 

 

 

6,007

 

Preferred unit distributions

 

(31,523

)

 

 

(31,887

)

 

 

(62,615

)

 

 

(63,774

)

Impairment loss

 

 

 

 

 

 

 

46,122

 

 

 

 

Income tax benefit related to impairment loss

 

 

 

 

 

 

 

(1,144

)

 

 

 

Other items

 

(4,775

)

 

 

1,225

 

 

 

(1,162

)

 

 

6,137

 

DCF

$

83,002

 

 

$

97,375

 

 

$

174,060

 

 

$

177,920

 

 

 

 

 

 

 

 

 

Distributions applicable to common limited partners

 

44,128

 

 

 

43,814

 

 

$

88,293

 

 

$

87,648

 

Distribution coverage ratio (b)

1.88x

 

2.22x

 

1.97x

 

2.03x

(a)

 

We intend to satisfy the vestings of these equity-based awards with the issuance of our common units. As such, the expenses related to these awards are considered non-cash and added back to DCF. Certain awards include distribution equivalent rights (DERs). Payments made in connection with DERs are deducted from DCF.

(b)

 

Distribution coverage ratio is calculated by dividing DCF by distributions applicable to common limited partners.

NuStar Energy L.P. and Subsidiaries
Reconciliation of Non-GAAP Financial Information - Continued
(Unaudited, Thousands of Dollars, Except per Unit and Ratio Data)

The following is the reconciliation for the calculation of our Consolidated Debt Coverage Ratio, as defined in our revolving credit agreement (the Revolving Credit Agreement).

 

For the Four Quarters Ended June 30,

 

 

2022

 

 

 

2021

 

Operating income

$

190,045

 

 

$

423,354

 

Depreciation and amortization expense

 

262,228

 

 

 

284,811

 

Goodwill impairment loss

 

34,060

 

 

 

 

Other impairment losses

 

201,030

 

 

 

 

Equity awards (a)

 

13,801

 

 

 

13,438

 

Pro forma effects of dispositions (b)

 

(10,077

)

 

 

(4,063

)

Other

 

481

 

 

 

4,307

 

Consolidated EBITDA, as defined in the Revolving Credit Agreement

$

691,568

 

 

$

721,847

 

 

 

 

 

Long-term debt, less current portion of finance leases

$

3,137,275

 

 

$

3,496,933

 

Finance leases (long-term)

 

(51,959

)

 

 

(53,403

)

Net fair value adjustments, unamortized discounts and unamortized debt issuance costs

 

35,924

 

 

 

40,310

 

NuStar Logistics' floating rate subordinated notes

 

(402,500

)

 

 

(402,500

)

Consolidated Debt, as defined in the Revolving Credit Agreement

$

2,718,740

 

 

$

3,081,340

 

 

 

 

 

Consolidated Debt Coverage Ratio (Consolidated Debt to Consolidated EBITDA)

3.93x

 

4.27x

(a)

 

This adjustment represents the non-cash expense related to the vestings of equity-based awards with the issuance of our common units.

(b)

 

For the four quarters ended June 30, 2022, this adjustment represents the pro forma effects of the dispositions of the Point Tupper and Eastern U.S. terminals. For the four quarters ended June 30, 2021, this adjustment represents the pro forma effect of the disposition of the Texas City terminals.

The following is a reconciliation of net income / net income (loss) per common unit to adjusted net income / adjusted net income per common unit.

 

Three Months Ended June 30, 2022

 

Six Months Ended June 30, 2022

Net income / net income (loss) per common unit

$

59,199

 

 

$

0.20

 

 

$

71,511

 

 

$

(0.02

)

Gain on sale

 

(1,564

)

 

 

(0.01

)

 

 

(1,564

)

 

 

(0.01

)

Impairment loss

 

 

 

 

 

 

 

46,122

 

 

 

0.42

 

Income tax benefit related to impairment loss

 

 

 

 

 

 

 

(1,144

)

 

 

(0.01

)

Adjusted net income / adjusted net income per common unit

$

57,635

 

 

$

0.19

 

 

$

114,925

 

 

$

0.38

 

The following is a reconciliation of EBITDA to adjusted EBITDA.

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

 

2021

 

 

2022

 

 

 

2021

EBITDA

$

175,134

 

 

$

189,378

 

$

302,358

 

 

$

358,530

Gain on sale

 

(1,564

)

 

 

 

 

(1,564

)

 

 

Impairment loss

 

 

 

 

 

 

46,122

 

 

 

Adjusted EBITDA

$

173,570

 

 

$

189,378

 

$

346,916

 

 

$

358,530

NuStar Energy L.P. and Subsidiaries
Reconciliation of Non-GAAP Financial Information - Continued
(Unaudited, Thousands of Dollars)

The following is a reconciliation of EBITDA to EBITDA, excluding the Point Tupper terminal and the Eastern U.S. terminals, which were sold in April 2022 and October 2021, respectively.

 

Three Months Ended June 30,

 

2022

 

2021

EBITDA

$

175,134

 

 

$

189,378

 

 

 

 

Divested assets:

 

 

 

Operating (loss) income

$

(14

)

 

$

2,245

Depreciation and amortization expense

 

 

 

 

7,817

Other income, net

 

1,608

 

 

 

292

EBITDA of divested assets

$

1,594

 

 

$

10,354

 

 

 

 

EBITDA, excluding divested assets

$

173,540

 

 

$

179,024

The following is a reconciliation of net income to EBITDA and adjusted EBITDA (projected).

 

Projected for the Year Ended December 31, 2022

Net income

$ 193,000 - 226,000

Interest expense, net

205,000 - 215,000

Income tax expense

2,500 - 4,500

Depreciation and amortization expense

255,000 - 260,000

EBITDA

655,500 - 705,500

Gain on sale

(1,600)

Impairment loss

46,100

Adjusted EBITDA

$ 700,000 - 750,000

NuStar Energy L.P. and Subsidiaries
Reconciliation of Non-GAAP Financial Information - Continued
(Unaudited, Thousands of Dollars)

The following are reconciliations of operating income to segment EBITDA for our pipeline and fuels marketing segments.

 

Three Months Ended June 30, 2022

 

Pipeline

 

Fuels Marketing

Operating income

$

100,953

 

$

6,631

Depreciation and amortization expense

 

44,442

 

 

Segment EBITDA

$

145,395

 

$

6,631

 

 

 

 

 

Three Months Ended June 30, 2021

 

Pipeline

 

Fuels Marketing

Operating income

$

96,512

 

$

2,298

Depreciation and amortization expense

 

44,990

 

 

Segment EBITDA

$

141,502

 

$

2,298

The following are reconciliations for our storage segment of operating income to segment EBITDA and segment EBITDA, excluding the Point Tupper terminal and the Eastern U.S. terminals, which were sold in April 2022 and October 2021, respectively.

 

Storage

 

Three Months Ended June 30,

 

2022

 

2021

Operating income

$

31,207

 

 

$

46,185

Depreciation and amortization expense

 

17,798

 

 

 

23,974

Segment EBITDA

$

49,005

 

 

$

70,159

 

 

 

 

Divested assets:

 

 

 

Operating (loss) income

$

(4

)

 

$

2,277

Depreciation and amortization expense

 

 

 

 

7,817

Segment EBITDA of divested assets

$

(4

)

 

$

10,094

 

 

 

 

Segment EBITDA, excluding divested assets

$

49,009

 

 

$

60,065

 

Investors, Pam Schmidt, Vice President, Investor Relations
Investor Relations: 210-918-INVR (4687)
or
Media, Mary Rose Brown, Executive Vice President and Chief Administrative Officer,
Corporate Communications: 210-918-2314 / 210-410-8926

Source: NuStar Energy L.P.

Sustainability

Stock Information

NUSTAR ENERGY, L.P ()

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