UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 16, 2022
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 7.01 Regulation FD Disclosure.
Senior management of NuStar Energy L.P. is participating in meetings with members of the investment community at the 2022 Citi One-on-One Midstream / Energy Infrastructure Conference on Tuesday, August 16, 2022 and Wednesday, August 17, 2022. The slides attached to this report were prepared in connection with, and are being used during, the meetings. The slides are included in Exhibit 99.1 to this report and are incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit Number | EXHIBIT | |||||||
| Exhibit 99.1 | ||||||||
| Exhibit 104 | Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| NUSTAR ENERGY L.P. | ||||||||||||||
By: | Riverwalk Logistics, L.P. | |||||||||||||
| its general partner | ||||||||||||||
By: | NuStar GP, LLC | |||||||||||||
| its general partner | ||||||||||||||
| Date: August 16, 2022 | By: | /s/ Amy L. Perry | ||||||||||||
| Name: | Amy L. Perry | |||||||||||||
| Title: | Executive Vice President-Strategic Development and General Counsel | |||||||||||||
2022 Citi A U G U S T 1 6 - 1 7 , 2 0 2 2 One-on-One Midstream / Energy Infrastructure Conference
2 Forward-Looking Statements Statements contained in this presentation other than statements of historical fact are forward-looking statements. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will likely vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance presented or suggested in this presentation. These forward-looking statements can generally be identified by the words "anticipates," "believes," "expects," "plans," "intends," "estimates," "forecasts," "budgets," "projects," "could," "should," "may" and similar expressions. These statements reflect our current views with regard to future events and are subject to various risks, uncertainties and assumptions. We undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see NuStar Energy L.P.’s annual report on Form 10-K and quarterly reports on Form 10-Q, filed with the SEC and available on NuStar’s website at www.nustarenergy.com. We use financial measures in this presentation that are not calculated in accordance with generally accepted accounting principles (“non-GAAP”) and our reconciliations of non- GAAP financial measures to GAAP financial measures are located in the appendix to this presentation. These non-GAAP financial measures should not be considered an alternative to GAAP financial measures.
3 Our Solid Second Quarter Results Once Again Demonstrated the Strength and Resilience of Our Business 1 - Please see Appendix for reconciliations of non-GAAP financial measures to their most directly comparable GAAP measures Q2 2022 Q2 2021 ★ Last year, we delivered on our promise to fund our spending with internally generated cash flows, funding 112% of our strategic capital from excess adjusted DCF 1 in 2021, up 11% over 2020, and we are on track to increase our internally generated cash flows in 2022 and beyond Northern Mexico Refined Products Supply System Throughputs Permian Crude System Throughputs ★ Excluding the contribution from the Eastern U.S. terminals we sold in October 2021 and the Point Tupper terminal we sold in April, our second quarter 2022 EBITDA1 was comparable to 2Q21
4 We Expect Full-Year 2022 to be Even Stronger Than Last Year Even Stronger in 2022 Stronger Adjusted EBITDA $700-750MM* Stronger % of Spending Funded From Internally Generated Cash Flows * - Please see Appendix for reconciliations of non-GAAP financial measures to their most directly comparable GAAP measures. Stronger Debt-to-EBITDA Ratio Improved From 2021
5 In 2022, We Have Kicked Off an Optimization Initiative In Order to Maximize Our Internally Generated Cash Flows Earlier this year, we kicked off an initiative to optimize our spending across our business to: • Scrutinize every dollar of OPEX and G&A expenses, with the goal of making meaningful strides in our cost structure to maximize internally generated cash flows • High-grade every dollar of our strategic spending to ensure that we only execute projects that meet or beat our internal hurdles and are lean, efficient and effective In our first phase of optimization, we have already identified almost $60 million in cost and spending reductions, across 2022 and 2023 1 1 1 Up to ~$60MM Phase #1: Phase #2: In progress Kick-off: March 2022 2022 Optimization Initiative Cost and Spending Reductions Identified for 2022 and 2023, in total
6 We Believe That Our Optimization, Combined With Our Sale of Point Tupper, Will Allow NuStar to Continue to Improve Our Debt-to-EBITDA Ratio in 2022 By deploying proceeds from our recent assets sales to reduce debt, we were able to reduce our Debt-to-EBITDA ratio for year- end 2021 below 4.0x1 Optimization and the proceeds of the Point Tupper sale are expected to allow us to continue to reduce our leverage this year, and we expect to demonstrate continued meaningful improvement by year-end 2022… 1 - Please see Appendix for reconciliations of non-GAAP financial measures to their most directly comparable GAAP measures 1 1 3.99x Continued Improvement 4.24x 1 4Q20 Actual 4Q21 Actual 2022 Outlook 3.93x 2Q22 Actual 1 1 1 1
7 This Year, We are On-target to Self-fund Our $115-145 Million Strategic Growth Capital Program for Our Core Asset Footprint Crude Supply/Export Renewable Fuels Refined Products • Permian Crude System • Corpus Christi Crude System • St. James Terminal • Midcontinent • Colorado/NM/Texas • Northern Mexico • Established: • West Coast Network • Ethanol & bio-diesel blending • Developing: • Ammonia System Total Estimated 2022 Strategic Spending: 115-145MM West Coast Renewable Fuels Storage (~$10MM in 2022) Permian Crude Pipeline System (~$60MM in 2022)
8 Carbon Emissions Reduction Goals Generate Growing Demand for NuStar’s Well- positioned Midstream Logistics Now and in the Future Stockton Selby Wilmington Gulf Coast Supply Singapore Supply Exports to Canada Tacoma Portland ★ Regulatory priorities on the West Coast and in Canada continue to dramatically increase demand for renewable fuels in the region ★ At the same time, obtaining permits for greenfield projects is difficult, which increases the value of existing assets ★ Our West Coast terminals have the access and optionality to receive and distribute renewable fuels across the West Coast 0 50 100 150 200 250 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 D ie se l V o lu m e , M B P D Fossil Diesel Biomass-Based + Renewable Diesel Source: IHS Markit 2021 California’s Transportation Fuel Supply With Low- Carbon Fuel Standard Compliance From Petroleum Diesel Alternatives Renewable Fuels
9 ★ We expect our market share to increase in 2022, along with associated EBITDA, as we complete additional projects presently in planning or under construction • We intend to continue converting tankage to renewable fuels as the market demands ★ Our facilities are positioned to benefit from new production and conversion projects for renewable diesel, sustainable aviation fuel (SAF), ethanol and other renewable fuels across the region BIODIESEL ETHANOL RENEWABLE DIESEL 5% 13% 21% NuStar’s Proportionate Share of California’s Renewable Fuels Market (Total Volume for the Four Quarters Ended March 31, 20221) Source: California Air Resource Board (CARB) 1 – Most recent data available We Have Captured a Significant (and Still Growing) Proportion of the Region’s Renewable Fuels Supply… Renewable Fuels SUSTAINABLE AVIATION FUEL 87%
10 … And We Continue to Partner With Key Customers to Develop Our Renewable Fuels Network, as LCFS Mandates Expand to Additional Markets Complete Portland Convert 36,000 bbls to biodiesel Convert 57,000 bbls to renewable diesel Selby Construct truck-loading for renewable diesel Multimodal shipment of SAF Convert 208,000 to SAF Modify rail to handle renewable feedstock offloading Stockton Convert 30,000 bbls to biodiesel Convert 73,000 bbls to renewable diesel and expand renewable diesel handling to all 15 rail spots Convert 151,000 bbls to renewable diesel Connect to ethanol unit train offload facility Wilmington Convert 160,000 bbls to renewable diesel Reconfigure dock for enhanced marine capability 1H25 Est. ★ We have established ourselves as an early mover in the renewable fuels transportation market by developing and completing a number of projects to handle and store renewable fuels ★ These projects have allowed NuStar to capture market share and build on relationships with key global producers • Our facilities are positioned to benefit from new production and conversion supply projects as the renewable fuels market continues to grow * Includes biodiesel, ethanol, renewable diesel, renewable feedstock and SAF Renewable Fuels 0 1000 2000 3000 4000 5000 6000 7000 Portland Selby Stockton Wilmington NuStar’s West Coast Terminals Renewable Fuel Growth* 2017 2018 2019 2020 2021 MBPY
11 Our Ammonia Pipeline is the longest and only ammonia pipeline in the country, spanning over 2,000 miles and seven states, from Louisiana, north along the Mississippi to Missouri, and then northwest and east, to Nebraska and Indiana Today, we provide the lowest-cost option for transporting imported and domestically produced ammonia to fertilize crops in our nation’s “breadbasket” We have capacity available to transport additional volumes, including “blue” or “green” ammonia • Currently running ~30 MBPD (~3,500 STPD1), but have operating capacity close to ~50 MBPD (~5,500 STPD) Renewable Fuels We are Also Developing Near- and Long-term Opportunities for Our Ammonia System, Both Renewable and Conventional St. James Third-party terminal NuStar Energy L.P. 1 – short tons per day
12 Ammonia, the World’s Second-most Widely Used Chemical, Offers Significant “Greening” Opportunities Ammonia is the basic building block for all types of nitrogen fertilizer which is an essential nutrient for growing plants • About 90% of the 200 million tons of ammonia (worth almost $80 billion in the aggregate) produced each year is used for fertilizer • About 50% of the world’s food production depends on ammonia Traditional fossil-fuel ammonia production is estimated to contribute about 1.6% of global GHG emissions, which has driven interest in its de-carbonization • “Blue” ammonia is produced with natural gas, but the associated emissions are captured and stored • “Green” ammonia is produced using “renewable” electricity to power an electrolyser to extract hydrogen from water and an air separation unit to extract nitrogen from air, which are then combined, through a chemical reaction powered by renewable electricity, to produce ammonia In addition, “blue” and “green” ammonia have potential for use as lower-carbon alternative fuels: for engines/turbines to generate electricity, in alkaline fuel cells, as an up-to-70% blend ICE vehicles and for the maritime industry Ammonia can also be a lower-cost option for transporting hydrogen, which can be used for fuel cells or other applications. Ammonia is easier to transport and store than hydrogen, as it doesn’t require cryogenic or high-pressure storage and can be relatively easily cracked to convert it to hydrogen NH3 Gas Turbine NH3 Fuel-cell Ship 70% NH3-fueled Car 50% of World’s Food Production Depends on NH3 Sources: Science Magazine, IHS Markit, Argus, Research & Markets Global Ammonia Report Renewable Fuels
13 U.S. Gasoline and Diesel Demand was Strong Through 2021, and 2022 is Expected to Improve ★ Gasoline demand in the United States recovered throughout 2021 and is on track to remain near pre- Covid levels in 2022 ★ Diesel demand exceeded pre- Covid levels starting in the first quarter of 2022 and is on track to remain at or near those levels through the remainder of the year Source: ESAI 86% 97% 98% 96% 91% 96% 96% 94% 95% 97% 96% 94% 97% 101% 92% 94% 99% 98% 75% 80% 85% 90% 95% 100% 105% 110% 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2023 U.S. Gasoline & Diesel Demand (as a % of Pre-Covid Demand) Gasoline Diesel Refined Products
14 NuStar’s Refined Products Systems Serve Key Markets Across the Midcontinent and Texas… Refined Products Midcontinent Systems- ★ CENTRAL EAST: A 2,500-mile pipeline system with multiple delivery options • East Pipeline – This system serves important markets across the Midwest/West, with flexible refined product supply from refineries in McPherson, Kansas, El Dorado, Kansas and Ponca City, Oklahoma • North Pipeline – System flows from North Dakota to the Twin Cities, serving both rural markets and large cities with refined product supply from Mandan, North Dakota refinery ★ CENTRAL WEST: Comprised of over 2,200 miles of structurally exclusive pipeline, supplied from the McKee, Texas refinery serving markets in Texas and nearby states South Texas Systems- ★ Around 700 miles of structurally exclusive pipeline, supplied from refineries located in Corpus Christi and Three Rivers, Texas serving markets in Texas and northern Mexico
15 70% 94% 100% 95% 105% 105% 97% 99% 99% 0% 20% 40% 60% 80% 100% 120% Apr-20 Aug-20 Oct-20 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 Percentage of Pre-COVID Demand Central West Region South Texas Central East Region Overall … And Our Markets Have Proven Resilient (and are Expected to Continue to See Strong, Consistent Demand) Our resilient asset base recovered quickly from April 2020’s pandemic low Full-year 2021 refined product throughputs were approximately 105% of our full- year 2019 (pre-Covid) levels Our refined product throughputs for 2Q 2022 were approximately 100% of (pre- Covid) levels, despite operational issues at customer refineries in 2Q 2022 1 – Comparison versus 2019 demand; applicable periods adjusted for Northern Mexico projects for a comparable presentation; includes on-road product demand in our storage system 2 – Comparison versus 2020 demand; applicable periods adjusted for Northern Mexico projects; includes on-road product demand in our storage system Refined Products Total Refined Products 2 11 1 1 2 1 1 2 1 1
16Source: ESAI 84% 54% 76% PADD 1 101% 88% 97% PADD 2 93% 63% 87% PADD 4 87% 56% 78% PADD 5 96% 83% PADD 3 89% 2020 Low 2021 Avg. 95% 78% 89% 2019 Avg. U.S. ★ At the end of 2021, U.S. refinery utilization reached 89% and is currently expected to average 94% in 2022, up 5% over 2021 utilization levels ★ U.S. Gulf Coast refiners’ location is expected to continue to provide several advantages, relative to other U.S. regions: • Better access to lower- priced natural gas, which should mitigate seasonal volatility • Capacity to upgrade heavy fuel oil • Better access to export markets for refined products U.S. Refinery Utilization has Risen Along With Rebounding Product Demand Refined Products Crude Supply/Export U.S. Refinery Utilization (by PADD, 2019-2022) 94% 2022 Avg. 87% 95% 104% 93% 80%
17 The Permian Basin is Leading the U.S. Shale Rebound, With Our Permian System Continuing to Outperform ★ Because of its superior geology and low breakeven costs, the Permian Basin’s shale production: • Exited 2021 at 5.1 MMBPD, representing approximately 55% of the nation’s total shale output • Is projected to exit 2022 at 6.2 MMBPD, representing 22% growth compared to 2021 exit ★ As of July, our system’s throughput volumes are now up 49% above Covid lows, while the rest of the Permian is up 35% from Covid lows ★ We expect to exit 2022 between 560 and 570 MBPD, which is 10% higher than our 2021 exit of ~520 MBPD Source: Rystad, ESAI - Crude Supply/Export 0 3 6 9 12 M M B P D Permian Oil Production (2018-2025) WTI @ $50 WTI @ $70 WTI @ $90 WTI @ $110 327% 132% 0% 40% 80% 120% 160% 200% 240% 280% 320% C u m u la ti v e M o n th ly G ro w th ( % ) NuStar's System Throughput Growth & Recovery is Outpacing the Permian Basin NS Growth Permian Growth 4.4 4.5 4.7 5.3 5.7 5.5 6.8 0 2 4 6 8 2019 2020 2021 2022 2023 M M B P D Permian Basin Oil Production Outlook (Avg as of July 2022) ESAI Rystad
18Please see Appendix for reconciliations of non-GAAP financial measures to their most directly comparable GAAP measures Our “Core of the Core” Location has Attracted Top-tier Customers Whose Activity is Supporting Steady Growth ★ The quality of geological formations underlying our system attracts the strongest customers • ~67% of our system’s revenue is generated from investment-grade (IG) rated and Non-IG BB-rated entities1 25% 42% 34% Major Private Other Public NS System Producer-type2 (% Average Daily Volume) Producer Average Cost of Debt, Weighted by Acreage: 5.5% 3 ★ We averaged 522 MBPD in 2Q22 (our best quarter since we acquired the system in 2017) • In June and July, we averaged 535 MBPD and 555 MBPD, respectively ★ Our producers have averaged around 20-25 rigs throughout 2022, which provide an important platform for growth $7 $12 $14 $12 $19 $27 $27 $23 $31 $35 $39 $38 $33 $38 $33 $37 $43 $46 $47 $49 $56 139 159 187 211 266 314 327 349 370 395 435 453 400 423 418 402 450 502 516 510 522 0 100 200 300 400 500 $0 $10 $20 $30 $40 $50 2 Q 1 7 3 Q 1 7 4 Q 1 7 1 Q 1 8 2 Q 1 8 3 Q 1 8 4 Q 1 8 1 Q 1 9 2 Q 1 9 3 Q 1 9 4 Q 1 9 1 Q 2 0 2 Q 2 0 3 Q 2 0 4 Q 2 0 1 Q 2 1 2 Q 2 1 3 Q 2 1 4 Q 2 1 1 Q 2 2 2 Q 2 2 EBITDA ($MM) System Receipts (Avg MBPD) NS Permian Crude System Performance (by Quarter) * Adjusted * Crude Supply/Export 1 – For the six months ended June 30, 2022 3 – As of August 11, 2022 2 – For the month ended June 30, 2022
19 Producers in the Basin Are Once Again Bullish on Permian Growth, Strength & Resiliency Crude Supply/Export “As global demand recovers, we continued to invest in our portfolio and grew our year-to-date production in the Permian by about 130,000 oil equivalent barrels per day versus the first half of 2021. For the full year in the Permian, we expect to achieve 25% production growth for the second consecutive year.” “Our Permian production delivery remains very strong, with a growth of approximately 100,000 BOE per day when comparing the fourth quarter of 2021 to our implied production guidance for the fourth quarter of 2022. We expect production in the second half of 2022 to average approximately 1.2 million BOE per day, which is notably higher than the first half of the year.” “Two of our Midland Basin sites recently earned the highest ratings from Project Canary's independent certification program. Production is at record levels and growing, in-line with guidance, with our royalty position providing a distinct financial advantage for our shareholders.” “In general, the production in both the Lower 48 and in the Permian is back half- weighted, and we expect low-single digit growth year-over-year on a pro forma basis. But on an entry to exit basis, we expect Lower 48 to grow in the mid-to high-single digits, with the Permian at the higher end of that range.” Source: 2Q 2022 Earnings Call Transcripts/Press Releases
20 We are Investing in Our Permian System in Pace With Our Producers’ Growth Crude Supply/Export Dedicated Acres 500,000 AMI 4,200,000 May 2017 Current System Capacity 220,000 700,000 Receipt Points 122 332 Pipeline Miles ~600 ~993 Storage (bbls) 900,000 1,600,000 Third-party Connections NuStar Terminals NuStar Truck Unloading Facilities Delivery Locations Midland: ★ Plains Cactus I & II, Basin, Sunrise and others ★ Enterprise Midland to Echo ★ Sunoco Permian Express ★ EPIC ★ Lotus Centurion ★ Wink-to-Webster Colorado City: ★ Sunoco WTG, Permian Express ★ Bridgetex ★ Plains Basin ★ Sunrise II Other: ★ Delek Big Spring Refinery
21 As Global Demand Recovers in 2022, Corpus Christi is Expected to be the Export Hub Best Positioned to Benefit From Future Growth Corpus Christi has remained the dominant Gulf Coast crude exports hub since 2020, currently capturing 61% of the U.S. Gulf Coast’s total export volumes So far this year, recovering global demand and the ongoing war in Ukraine have increased U.S. Gulf Coast exports to pre-pandemic levels Improved global refined product demand should continue to lead the way to further recovery in global crude demand Source: RBN Energy, ESAI 99.8 90.4 96.0 98.3 101.1 102.9 103.9 104.7 85 90 95 100 105 2019 2020 2021 2022 2023 2024 2025 2026 M M b p d Global Crude Oil Demand 61%23% 8% 9% U.S. Gulf Coast Crude Exports by Hub (2022 YTD) Corpus Christi Houston Beaumont Louisiana Crude Supply/Export Global Refined Product Demand* *Comprised of gasoline and diesel demand 54.2 48.9 52.2 53.4 54.5 55.2 55.6 55.9 45 47 49 51 53 55 2019 2020 2021 2022 2023 2024 2025 2026 M M b p d
22 56% 67% 60% 63% 73% 44% 33% 40% 37% 27% 0 200 400 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 MBPD CCCS Refinery Throughputs CCCS Dock Throughputs NuStar’s Corpus Christi Crude System Average Throughputs/Quarter 340 287 379 390 314 Our Corpus Christi Crude System’s MVCs- for Export and Local Refinery Supply- Provide Strength & Stability In-bound Capacity Storage Capacity Outbound Capacity ★ Unlike most other midstream operators in the Port of Corpus Christi, NuStar provides unparalleled optionality for marine exports and extensive connectivity to local refineries ★ U.S. shale production growth and improving global demand will drive the recovery and growth in our CCCS volumes TOTAL: 3.9MMbbl • Potential expansion 0.4MMbbl TOTAL: 1.2MMBPD • South Texas Crude System 16” Pipeline - 240MBPD • Taft 30”- 720MBPD and expandable • Harvest 16” Pipeline - 240MBPD TOTAL: 1.2MMBPD • Export Docks- 750MBPD to 1.0MMBPD • Refinery Supply- 220MBPD Crude Supply/Export ★ The heart of our Corpus Christi Crude System (CCCS) is our North Beach Terminal, which receives barrels from our South Texas Crude Oil Pipeline System, our 12” Three Rivers Supply Pipeline and our 30” pipeline from Taft, as well as from third-party pipeline connections ★ In July 2022, we extended our MVC contract with Trafigura for an additional year and a half, through December 2024
23 In 2022, We Will Continue to Focus on NuStar’s Strategic Priorities Across Our Business Optimizing Our Business to Increase Cash Flow Reducing Our Debt Promoting Our ESG Excellence Our Strategic Priorities: 1. 2. 3.
APPENDIX
25 NuStar By-the-numbers N Y S E : N S •Common Unit Price(1): $15.04 •Distribution/CU/Year: $1.60 •Yield(1): 10.6% •Market Cap(1): ~$1.7 billion •Credit Ratings: ➢ Moody’s: Ba3 (Stable) ➢ S&P: BB- (Stable) ➢ Fitch: BB- (Stable) •Enterprise Value(1): ~$6.1 billion •Total Assets: ~$5.0 billion •Pipeline Miles: ~10,000 •Pipeline Volumes(2): 1.8MMBPD •Storage Capacity: ~49MMB •Storage Throughput Volumes(2): 396MBPD 1. As of August 12, 2022 2. Average daily volume for the quarter ended June 30, 2022
26 Long-term Commitments From Creditworthy Customers 60% 14% 26% Investment-grade Large Private or International (Not rated) Other NuStar Investment-grade Customers (% Pipeline/Storage 2022 Revenues) 30% 40% 30% Take-or-pay Contracts Structurally Exclusive Other Pipeline Segment Contracted1 Revenues (% 2022 Forecast – as of 2Q22) 66% 34% Take-or-pay Contracts Other Storage Segment Contracted Revenues (% 2022 Forecast – as of 2Q22) 1 - Committed through take or pay contracts or through structural exclusivity (uncommitted lines serving refinery customers with no competition)
27 $72 $600 $500 $550 $600 $322 $403 $75 $924 $4 $0 $250 $500 $750 $1,000 Liquidity 2022 2023-2024 2025 2026 2027 2028-2029 2030 2038-2041 2043 Receivables Financing Sub Notes GO Zone Financing Senior Unsecured Notes Revolver $928 LIQUIDITY ($MM)1 Liquidity and Debt Maturity Schedule ★ In January 2022, we extended the term our $1.0 billion revolver through April 2025 and our receivables financing agreement through January 2025 ★ We utilized proceeds from recent asset sales to pay-off bond maturities and further reduce debt balances ★ We now have over $900 million available on our revolver, and our debt maturity runway is cleared until 2025 Debt Maturities ($MM)1 1 – Balances as of June 30, 2022
28 Capital Structure as of June 30, 2022 ($ in Millions) $1.0B Credit Facility $ 72 NuStar Logistics Notes (5.625%) 550 NuStar Logistics Notes (5.75%) 600 NuStar Logistics Notes (6.00%) 500 NuStar Logistics Notes (6.375%) 600 NuStar Logistics Sub Notes 403 GO Zone Bonds 322 Receivables Financing 75 Finance Lease Liability 56 Other (37) Total Debt $3,141 Common Equity and AOCI $ 188 Series A, B and C Preferred Units 756 Series D Preferred Units 626 Total Equity1 1,570 Total Capitalization $4,711 ★ As of June 30, 2022: • Credit facility availability ~$924MM • Debt-to-EBITDA ratio2 3.93x 1 - Total Equity includes Partners’ and Mezzanine Equity (Series D Preferred Units) 2 - Please see Appendix for reconciliations of non-GAAP financial measures to their most directly comparable GAAP measures
29 Reconciliation of Non-GAAP Financial Information
30 Reconciliation of Non-GAAP Financial Information (continued)
31 Reconciliation of Non-GAAP Financial Information (continued)
32 Reconciliation of Non-GAAP Financial Information (continued)
33 Reconciliation of Non-GAAP Financial Information (continued)
34 NuStar Contact Information INVESTOR RELATIONS And for additional information about corporate sustainability at NuStar, visit https://sustainability.nustarenergy.com/ SUSTAINABILITY (210) 918-INVR (4687) InvestorRelations@NuStarEnergy.com Sustainability@NuStarEnergy.com