News Release
NuStar Energy Reports Earnings Results for Third Quarter of 2012
Storage and Transportation Segments Continue to Perform Better Than Last Year
Declared Distribution of
Earnings before interest, taxes, depreciation and amortization (EBITDA)
was
The company reported a third quarter net loss applicable to limited
partners of
The partnership also announced that its board of directors has declared
a third quarter 2012 distribution of
“Our storage and transportation segments continue to perform better than
last year as we realize the benefits of completing several internal
growth capital projects over the past year," said
Anastasio added, "The
Third Quarter and Year to Date Adjustments
The third quarter 2012 results included
Results for the nine months ended
Internal Growth Project Update
“Early in October we completed the construction of a fifty-five mile
twelve-inch pipeline that will transport Eagle Ford crude to the
Anastasio went on to say, “We also expect to complete a one million barrel tank expansion project at our St. Eustatius terminal facility later this quarter. This will expand the storage capacity of this facility to close to fourteen million barrels.”
Earnings Outlook for the Fourth Quarter of 2012
In regard to the fourth quarter 2012 outlook for NuStar Energy L.P.’s
business segments Anastasio commented, “We expect EBITDA in both our
transportation and asphalt and fuels marketing segments to be higher
than last year. The transportation segment should continue to benefit
from our
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 | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||||||
Statement of Income Data: | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Services revenues | $ | 221,821 | $ | 210,681 | $ | 636,548 | $ | 608,689 | ||||||||||||
Product sales | 1,522,945 | 1,613,669 | 4,745,815 | 4,039,461 | ||||||||||||||||
Total revenues |
1,744,766 | 1,824,350 | 5,382,363 | 4,648,150 | ||||||||||||||||
Costs and expenses: | ||||||||||||||||||||
Cost of product sales | 1,486,985 | 1,535,609 | 4,638,011 | 3,797,424 | ||||||||||||||||
Operating expenses | 142,419 | 135,615 | 403,348 | 390,480 | ||||||||||||||||
General and administrative expenses | 24,954 | 17,731 | 75,276 | 69,833 | ||||||||||||||||
Depreciation and amortization expense | 39,686 | 42,418 | 129,943 | 124,354 | ||||||||||||||||
Asset impairment loss | - | - | 249,646 | - | ||||||||||||||||
Goodwill impairment loss | - | - | 22,132 | - | ||||||||||||||||
Gain on legal settlement | - | - | (28,738 | ) | - | |||||||||||||||
Total costs and expenses | 1,694,044 | 1,731,373 | 5,489,618 | 4,382,091 | ||||||||||||||||
Operating income (loss) | 50,722 | 92,977 | (107,255 | ) | 266,059 | |||||||||||||||
Equity in (loss) earnings of joint venture | (951 | ) | 2,599 | 3,816 | 6,997 | |||||||||||||||
Interest expense, net | (24,867 | ) | (21,565 | ) | (71,037 | ) | (62,644 | ) | ||||||||||||
Other (expense) income, net | (19,940 | ) | 767 | (21,384 | ) | (5,699 | ) | |||||||||||||
Income (loss) before income tax expense | 4,964 | 74,778 | (195,860 | ) | 204,713 | |||||||||||||||
Income tax expense | 622 | 4,497 | 20,354 | 13,311 | ||||||||||||||||
Net income (loss) | $ | 4,342 | $ | 70,281 | $ | (216,214 | ) | $ | 191,402 | |||||||||||
Net (loss) income applicable to limited partners | $ | (6,503 | ) | $ | 59,783 | $ | (242,113 | ) | $ | 160,932 | ||||||||||
Net (loss) income per unit applicable to limited partners | $ | (0.09 | ) | $ | 0.92 | $ | (3.40 | ) | $ | 2.49 | ||||||||||
Weighted average limited partner units outstanding | 72,383,578 | 64,612,423 | 71,302,538 | 64,611,181 | ||||||||||||||||
EBITDA (Note 1) | $ | 69,517 | $ | 138,761 | $ | 5,120 | $ | 391,711 | ||||||||||||
Distributable cash flow (Note 1) | $ | 67,378 | $ | 90,970 | $ | 150,178 | $ | 276,524 | ||||||||||||
September 30, | September 30, | December 31, | ||||||||||||||||||
2012 | 2011 | 2011 | ||||||||||||||||||
Balance Sheet Data: | ||||||||||||||||||||
Debt, including current portion (a) | $ | 2,036,406 | $ | 2,525,655 | $ | 2,293,030 | ||||||||||||||
Partners' equity (b) | 2,672,099 | 2,525,049 | 2,864,335 | |||||||||||||||||
Debt-to-capitalization ratio (a) / ((a)+(b)) | 43.2 | % | 50.0 | % | 44.5 | % | ||||||||||||||
NuStar Energy L.P. and Subsidiaries | ||||||||||||||||||||
Consolidated Financial Information - Continued | ||||||||||||||||||||
(Unaudited, Thousands of Dollars, Except Barrel Data) | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||||||
Segment Data: | ||||||||||||||||||||
Storage: | ||||||||||||||||||||
Throughput (barrels/day) | 780,560 | 721,618 | 755,893 | 679,031 | ||||||||||||||||
Throughput revenues | $ | 23,222 | $ | 21,743 | $ | 67,679 | $ | 58,388 | ||||||||||||
Storage lease revenues | 125,708 | 120,146 | 379,473 | 359,820 | ||||||||||||||||
Total revenues | 148,930 | 141,889 | 447,152 | 418,208 | ||||||||||||||||
Operating expenses | 75,210 | 71,386 | 214,605 | 213,230 | ||||||||||||||||
Depreciation and amortization expense | 23,298 | 21,725 | 69,725 | 64,656 | ||||||||||||||||
Asset impairment loss | - | - | 2,126 | - | ||||||||||||||||
Segment operating income | $ | 50,422 | $ | 48,778 | $ | 160,696 | $ | 140,322 | ||||||||||||
Transportation: | ||||||||||||||||||||
Refined products pipelines throughput (barrels/day) | 521,255 | 523,279 | 490,775 | 509,354 | ||||||||||||||||
Crude oil pipelines throughput (barrels/day) | 368,846 | 319,103 | 333,859 | 304,554 | ||||||||||||||||
Total throughput (barrels/day) | 890,101 | 842,382 | 824,634 | 813,908 | ||||||||||||||||
Revenues | $ | 93,730 | $ | 81,899 | $ | 247,109 | $ | 226,471 | ||||||||||||
Operating expenses | 37,788 | 30,796 | 96,084 | 85,381 | ||||||||||||||||
Depreciation and amortization expense | 13,345 | 12,855 | 39,607 | 38,282 | ||||||||||||||||
Segment operating income | $ | 42,597 | $ | 38,248 | $ | 111,418 | $ | 102,808 | ||||||||||||
Asphalt and fuels marketing: | ||||||||||||||||||||
Product sales | $ | 1,523,044 | $ | 1,618,693 | $ | 4,746,221 | $ | 4,049,079 | ||||||||||||
Cost of product sales | 1,495,312 | 1,545,340 | 4,659,912 | 3,821,379 | ||||||||||||||||
Gross margin | 27,732 | 73,353 | 86,309 | 227,700 | ||||||||||||||||
Operating expenses | 42,010 | 41,862 | 128,829 | 113,506 | ||||||||||||||||
Depreciation and amortization expense | 1,404 | 6,073 | 15,119 | 16,505 | ||||||||||||||||
Asset and goodwill impairment loss | - | - | 266,357 | - | ||||||||||||||||
Segment operating (loss) income | $ | (15,682 | ) | $ | 25,418 | $ | (323,996 | ) | $ | 97,689 | ||||||||||
Consolidation and intersegment eliminations: | ||||||||||||||||||||
Revenues | $ | (20,938 | ) | $ | (18,131 | ) | $ | (58,119 | ) | $ | (45,608 | ) | ||||||||
Cost of product sales | (8,327 | ) | (9,731 | ) | (21,901 | ) | (23,955 | ) | ||||||||||||
Operating expenses | (12,589 | ) | (8,429 | ) | (36,170 | ) | (21,637 | ) | ||||||||||||
Total | $ | (22 | ) | $ | 29 | $ | (48 | ) | $ | (16 | ) | |||||||||
Consolidated Information: | ||||||||||||||||||||
Revenues | $ | 1,744,766 | $ | 1,824,350 | $ | 5,382,363 | $ | 4,648,150 | ||||||||||||
Cost of product sales | 1,486,985 | 1,535,609 | 4,638,011 | 3,797,424 | ||||||||||||||||
Operating expenses | 142,419 | 135,615 | 403,348 | 390,480 | ||||||||||||||||
Depreciation and amortization expense | 38,047 | 40,653 | 124,451 | 119,443 | ||||||||||||||||
Asset and goodwill impairment loss | - | - | 268,483 | - | ||||||||||||||||
Segment operating income (loss) | 77,315 | 112,473 | (51,930 | ) | 340,803 | |||||||||||||||
General and administrative expenses | (24,954 | ) | (17,731 | ) | (75,276 | ) | (69,833 | ) | ||||||||||||
Other depreciation and amortization expense | (1,639 | ) | (1,765 | ) | (5,492 | ) | (4,911 | ) | ||||||||||||
Other asset impairment loss | - | - | (3,295 | ) | - | |||||||||||||||
Gain on legal settlement | - | - | 28,738 | - | ||||||||||||||||
Consolidated operating income (loss) | $ | 50,722 | $ | 92,977 | $ | (107,255 | ) | $ | 266,059 | |||||||||||
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 | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||||||
Net income | $ | 4,342 | $ | 70,281 | $ | (216,214 | ) | $ | 191,402 | |||||||||||
Plus interest expense, net | 24,867 | 21,565 | 71,037 | 62,644 | ||||||||||||||||
Plus income tax expense | 622 | 4,497 | 20,354 | 13,311 | ||||||||||||||||
Plus depreciation and amortization expense | 39,686 | 42,418 | 129,943 | 124,354 | ||||||||||||||||
EBITDA | 69,517 | 138,761 | 5,120 | 391,711 | ||||||||||||||||
Less equity in loss (earnings) of joint ventures | 951 | (2,599 | ) | (3,816 | ) | (6,997 | ) | |||||||||||||
Less interest expense, net | (24,867 | ) | (21,565 | ) | (71,037 | ) | (62,644 | ) | ||||||||||||
Less reliability capital expenditures | (8,780 | ) | (15,104 | ) | (23,784 | ) | (41,257 | ) | ||||||||||||
Less income tax expense | (622 | ) | (4,497 | ) | (20,354 | ) | (13,311 | ) | ||||||||||||
Plus distributions from joint venture | 3,098 | 2,668 | 6,364 | 9,397 | ||||||||||||||||
Plus other non-cash items (a) | 21,579 | - | 274,677 | 5,093 | ||||||||||||||||
Mark-to-market impact on hedge transactions (b) | 6,502 | (9,944 | ) | (16,992 | ) | (8,718 | ) | |||||||||||||
Contingent loss adjustment | - | 3,250 | - | 3,250 | ||||||||||||||||
Distributable cash flow | $ | 67,378 | $ | 90,970 | $ | 150,178 | $ | 276,524 | ||||||||||||
EBITDA | $ | 69,517 | $ | 138,761 | $ | 5,120 | $ | 391,711 | ||||||||||||
EBITDA attributable to noncontrolling interest | (66 | ) | 100 | (79 | ) | 386 | ||||||||||||||
EBITDA attributable to NuStar Energy L.P. | $ | 69,583 | $ | 138,661 | $ | 5,199 | $ | 391,325 | ||||||||||||
Distributable cash flow | $ | 67,378 | $ | 90,970 | $ | 150,178 | $ | 276,524 | ||||||||||||
Distributable cash flow attributable to noncontrolling interest | 30 | 87 | 44 | 388 | ||||||||||||||||
Distributable cash flow attributable to NuStar Energy L.P. | $ | 67,348 | $ | 90,883 | $ | 150,134 | $ | 276,136 | ||||||||||||
General partner's interest in distributable cash flow | 12,766 | 10,608 | 35,962 | 31,358 | ||||||||||||||||
Limited partners' interest in distributable cash flow | $ | 54,582 | $ | 80,275 | $ | 114,172 | $ | 244,778 | ||||||||||||
Distributable cash flow per limited partner unit | $ | 0.75 | $ | 1.24 | $ | 1.59 | $ | 3.79 | ||||||||||||
(a) | Other non-cash items for the three months ended September 30, 2012 consist of a $21.6 million loss mainly associated with inventory related to the sale of 50% of our asphalt operations on September 28, 2012. | |||
(b) | Distributable cash flow 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 distributable cash flow when the contracts are settled. |
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