NuStar Energy Covers Distribution in the Fourth Quarter and for the Full-Year 2015
Quarterly Distribution Remains at $1.095 per Unit
Highest Annual Distribution Coverage Since 2009
2015 EBITDA and DCF Highest in Partnership’s History
NuStar Energy L.P. (NYSE: NS) today announced fourth quarter 2015
earnings before interest, taxes, depreciation and amortization (EBITDA)
from continuing operations were $150.6 million, compared to fourth
quarter 2014 EBITDA of $136.0 million. For the year ended December 31,
2015, the partnership reported $662.7 million of EBITDA from continuing
operations, an increase of 21% over the $547.9 million reported for the
year ended December 31, 2014 and the highest reported in the
partnership’s history.
Fourth quarter 2015 distributable cash flow (DCF) from continuing
operations available to limited partners was $89.6 million, or $1.15 per
unit, compared to 2014 fourth quarter DCF from continuing operations
available to limited partners of $95.4 million, or $1.23 per unit. For
the year ended December 31, 2015, DCF from continuing operations
available to limited partners was $377.9 million, or $4.85 per unit,
which was higher than the $354.8 million, or $4.56 per unit, earned in
2014.
“2015 was another great year for NuStar, despite challenging industry
fundamentals,” said Brad Barron, President and Chief Executive Officer
of NuStar Energy L.P. and NuStar GP Holdings, LLC. “We were able to
exceed a one-to-one distribution coverage ratio for a second year in a
row.
“Key contributions from our Linden terminal acquisition, increased
storage renewal rates at many of our terminal locations, higher
utilization across our terminal system and strong South Texas crude
volumes across our docks at our Corpus Christi North Beach facility
provided for an 11% increase in storage revenues compared to 2014. Our
pipeline segment continued to benefit from our investments in our South
Texas Crude Oil Pipeline system, as pipeline revenues increased 7% year
over year.”
Barron went on to say, “DCF from continuing operations available to
limited partners covers the distribution to the limited partners by 1.05
times for the fourth quarter of 2015 and by 1.11 times for the full-year
2015, our highest annual distribution coverage since 2009.”
The partnership reported fourth quarter net income applicable to limited
partners of $47.5 million, or $0.61 per unit, compared to net income
applicable to limited partners of $41.5 million, or $0.54 per unit, for
the fourth quarter of 2014. For the year ended December 31, 2015, the
partnership reported net income applicable to limited partners of $257.4
million, or $3.30 per unit, compared to net income applicable to limited
partners of $163.3 million, or $2.10 per unit, in 2014.
Absent a gain related to the January 2, 2015 acquisition of the
remaining 50% ownership in the Linden terminal, adjusted EBITDA from
continuing operations for the year ended December 31, 2015 would have
been $606.5 million, still a record for the partnership, while adjusted
net income applicable to limited partners would have been $202.2
million, or $2.59 per unit.
The partnership also announced that its board of directors has declared
a fourth quarter 2015 distribution of $1.095 per unit. The fourth
quarter 2015 distribution will be paid on February 12, 2016 to holders
of record as of February 8, 2016.
2016 Earnings Guidance
“Our overall expectations for 2016 are essentially unchanged from what
we conveyed to you previously, but we have adjusted our EBITDA
expectations for our storage and pipeline segments. We now expect our
storage segment 2016 EBITDA to be $310 to $330 million, up approximately
$15 million from previous guidance, due to an increase in our expected
storage rates and throughput activity at some of our terminals.
“Pipeline segment 2016 EBITDA is now expected to be $335 to $355
million, lower than our previous guidance due to reduced Eagle Ford
volume projections for 2016. Fuels marketing segment EBITDA is still
projected to be in the range of $15 to $35 million,” said Barron.
Barron went on to say, “Our 2016 capital spending projections remain
unchanged. We have budgeted to spend $360 to $380 million for strategic
capital and $35 to $45 million on reliability capital spending. However,
we are in the process of prioritizing all capital spending for 2016 to
avoid accessing the public debt and equity markets. We plan to finance
2016 spending with excess cash on our balance sheet, borrowings from our
$1.5 billion credit facility and possibly by accessing the convertible
preferred market.”
Barron concluded by saying, “Based on these projections we expect to
once again cover our current distribution in 2016.”
Fourth Quarter Earnings Conference Call
Details
A conference call with management is scheduled for 9:00 a.m. CT today,
January 29, 2016, to discuss the financial and operational results for
the fourth quarter of 2015. Investors interested in listening to the
presentation may call 800/622-7620, passcode 22232103. International
callers may access the presentation by dialing 706/645-0327, passcode
22232103. The partnership intends to have a playback available following
the presentation, which may be accessed by calling 800/585-8367,
passcode 22232103. International callers may access the playback by
calling 404/537-3406, passcode 22232103. The playback will be available
until 10:59 p.m. CT on February 29, 2016.
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 NuStar Energy
L.P.’s Web site at www.nustarenergy.com.
NuStar Energy L.P., a publicly traded master limited partnership based
in San Antonio, is one of the largest independent liquids terminal and
pipeline operators in the nation. NuStar currently has approximately
8,700 miles of pipeline and 79 terminal and storage facilities that
store and distribute crude oil, refined products and specialty liquids.
The partnership’s combined system has approximately 93 million barrels
of storage capacity, and NuStar has operations in the United States,
Canada, Mexico, the Netherlands, including St. Eustatius in the
Caribbean, and the United Kingdom. For more information, visit NuStar
Energy L.P.'s Web site at www.nustarenergy.com.
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 United States trade or
business. Accordingly, all of NuStar Energy L.P.’s distributions to
foreign investors are subject to federal income tax withholding at the
highest effective tax rate for individuals and corporations, as
applicable. Nominees, and not NuStar Energy L.P., are treated as the
withholding agents responsible for withholding on the distributions
received by them on behalf of foreign investors.
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 GP
Holdings, LLC’s 2014 annual reports 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.
|
|
|
|
|
|
|
|
NuStar Energy L.P. and Subsidiaries
|
Consolidated Financial Information
|
(Unaudited, Thousands of Dollars, Except Unit and Per Unit Data)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
Year Ended December 31,
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
Statement of Income Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service revenues
|
|
|
$
|
281,025
|
|
|
|
$
|
270,895
|
|
|
|
|
$
|
1,114,153
|
|
|
|
$
|
1,026,446
|
|
Product sales
|
|
|
|
183,894
|
|
|
|
|
410,843
|
|
|
|
|
|
969,887
|
|
|
|
|
2,048,672
|
|
Total revenues
|
|
|
|
464,919
|
|
|
|
|
681,738
|
|
|
|
|
|
2,084,040
|
|
|
|
|
3,075,118
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of product sales
|
|
|
|
169,500
|
|
|
|
|
389,020
|
|
|
|
|
|
907,574
|
|
|
|
|
1,967,528
|
|
Operating expenses
|
|
|
|
117,612
|
|
|
|
|
135,359
|
|
|
|
|
|
473,031
|
|
|
|
|
472,925
|
|
General and administrative expenses
|
|
|
|
27,096
|
|
|
|
|
27,070
|
|
|
|
|
|
102,521
|
|
|
|
|
96,056
|
|
Depreciation and amortization expense
|
|
|
|
52,687
|
|
|
|
|
48,943
|
|
|
|
|
|
210,210
|
|
|
|
|
191,708
|
|
Total costs and expenses
|
|
|
|
366,895
|
|
|
|
|
600,392
|
|
|
|
|
|
1,693,336
|
|
|
|
|
2,728,217
|
|
Operating income
|
|
|
|
98,024
|
|
|
|
|
81,346
|
|
|
|
|
|
390,704
|
|
|
|
|
346,901
|
|
Equity in earnings of joint ventures
|
|
|
|
—
|
|
|
|
|
3,059
|
|
|
|
|
|
—
|
|
|
|
|
4,796
|
|
Interest expense, net
|
|
|
|
(33,559
|
)
|
|
|
|
(31,735
|
)
|
|
|
|
|
(131,868
|
)
|
|
|
|
(131,226
|
)
|
Other (expense) income, net
|
|
|
|
(70
|
)
|
|
|
|
2,683
|
|
|
|
|
|
61,822
|
|
|
|
|
4,499
|
|
Income from continuing operations before income tax expense
|
|
|
|
64,395
|
|
|
|
|
55,353
|
|
|
|
|
|
320,658
|
|
|
|
|
224,970
|
|
Income tax expense
|
|
|
|
4,915
|
|
|
|
|
484
|
|
|
|
|
|
14,712
|
|
|
|
|
10,801
|
|
Income from continuing operations
|
|
|
|
59,480
|
|
|
|
|
54,869
|
|
|
|
|
|
305,946
|
|
|
|
|
214,169
|
|
(Loss) income from discontinued operations, net of tax
|
|
|
|
—
|
|
|
|
|
(1,475
|
)
|
|
|
|
|
774
|
|
|
|
|
(3,791
|
)
|
Net income
|
|
|
$
|
59,480
|
|
|
|
$
|
53,394
|
|
|
|
|
$
|
306,720
|
|
|
|
$
|
210,378
|
|
Net income applicable to limited partners
|
|
|
$
|
47,485
|
|
|
|
$
|
41,522
|
|
|
|
|
$
|
257,366
|
|
|
|
$
|
163,339
|
|
Net income (loss) per unit applicable to limited partners:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
0.61
|
|
|
|
$
|
0.55
|
|
|
|
|
$
|
3.29
|
|
|
|
$
|
2.14
|
|
Discontinued operations
|
|
|
|
—
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
0.01
|
|
|
|
|
(0.04
|
)
|
Total
|
|
|
$
|
0.61
|
|
|
|
$
|
0.54
|
|
|
|
|
$
|
3.30
|
|
|
|
$
|
2.10
|
|
Weighted-average limited partner units outstanding
|
|
|
|
77,886,078
|
|
|
|
|
77,886,078
|
|
|
|
|
|
77,886,078
|
|
|
|
|
77,886,078
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA from continuing operations (Note 1)
|
|
|
$
|
150,641
|
|
|
|
$
|
136,031
|
|
|
|
|
$
|
662,736
|
|
|
|
$
|
547,904
|
|
DCF from continuing operations (Note 1)
|
|
|
$
|
102,393
|
|
|
|
$
|
108,173
|
|
|
|
|
$
|
428,971
|
|
|
|
$
|
405,890
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt
|
|
|
$
|
3,163,349
|
|
|
|
$
|
2,826,452
|
|
|
|
|
|
|
|
|
Partners’ equity
|
|
|
|
1,609,844
|
|
|
|
|
1,716,210
|
|
|
|
|
|
|
|
|
Consolidated debt coverage ratio (Note 2)
|
|
|
4.5
|
x
|
|
|
4.0
|
x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NuStar Energy L.P. and Subsidiaries
|
Consolidated Financial Information - Continued
|
(Unaudited, Thousands of Dollars, Except Barrel Data)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
Year Ended December 31,
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
Pipeline:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refined products pipelines throughput (barrels/day)
|
|
|
|
551,246
|
|
|
|
|
533,521
|
|
|
|
|
|
522,146
|
|
|
|
|
510,737
|
|
Crude oil pipelines throughput (barrels/day)
|
|
|
|
435,007
|
|
|
|
|
490,969
|
|
|
|
|
|
471,632
|
|
|
|
|
437,757
|
|
Total throughput (barrels/day)
|
|
|
|
986,253
|
|
|
|
|
1,024,490
|
|
|
|
|
|
993,778
|
|
|
|
|
948,494
|
|
Throughput revenues
|
|
|
$
|
130,492
|
|
|
|
$
|
130,812
|
|
|
|
|
$
|
508,522
|
|
|
|
$
|
477,030
|
|
Operating expenses
|
|
|
|
40,081
|
|
|
|
|
44,421
|
|
|
|
|
|
153,222
|
|
|
|
|
154,106
|
|
Depreciation and amortization expense
|
|
|
|
22,058
|
|
|
|
|
20,036
|
|
|
|
|
|
84,951
|
|
|
|
|
77,691
|
|
Segment operating income
|
|
|
$
|
68,353
|
|
|
|
$
|
66,355
|
|
|
|
|
$
|
270,349
|
|
|
|
$
|
245,233
|
|
Storage:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Throughput (barrels/day)
|
|
|
|
888,033
|
|
|
|
|
918,929
|
|
|
|
|
|
899,606
|
|
|
|
|
887,607
|
|
Throughput revenues
|
|
|
$
|
31,762
|
|
|
|
$
|
31,867
|
|
|
|
|
$
|
130,127
|
|
|
|
$
|
123,051
|
|
Storage lease revenues
|
|
|
|
123,067
|
|
|
|
|
111,142
|
|
|
|
|
|
494,781
|
|
|
|
|
441,455
|
|
Total revenues
|
|
|
|
154,829
|
|
|
|
|
143,009
|
|
|
|
|
|
624,908
|
|
|
|
|
564,506
|
|
Operating expenses
|
|
|
|
70,185
|
|
|
|
|
74,952
|
|
|
|
|
|
290,322
|
|
|
|
|
277,554
|
|
Depreciation and amortization expense
|
|
|
|
28,541
|
|
|
|
|
26,368
|
|
|
|
|
|
116,768
|
|
|
|
|
103,848
|
|
Segment operating income
|
|
|
$
|
56,103
|
|
|
|
$
|
41,689
|
|
|
|
|
$
|
217,818
|
|
|
|
$
|
183,104
|
|
Fuels Marketing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product sales and other revenue
|
|
|
$
|
185,497
|
|
|
|
$
|
414,205
|
|
|
|
|
$
|
976,216
|
|
|
|
$
|
2,060,017
|
|
Cost of product sales
|
|
|
|
172,820
|
|
|
|
|
392,734
|
|
|
|
|
|
922,906
|
|
|
|
|
1,983,339
|
|
Gross margin
|
|
|
|
12,677
|
|
|
|
|
21,471
|
|
|
|
|
|
53,310
|
|
|
|
|
76,678
|
|
Operating expenses
|
|
|
|
9,926
|
|
|
|
|
18,563
|
|
|
|
|
|
39,803
|
|
|
|
|
51,857
|
|
Depreciation and amortization expense
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
16
|
|
Segment operating income
|
|
|
$
|
2,751
|
|
|
|
$
|
2,908
|
|
|
|
|
$
|
13,507
|
|
|
|
$
|
24,805
|
|
Consolidation and Intersegment Eliminations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
$
|
(5,899
|
)
|
|
|
$
|
(6,288
|
)
|
|
|
|
$
|
(25,606
|
)
|
|
|
$
|
(26,435
|
)
|
Cost of product sales
|
|
|
|
(3,320
|
)
|
|
|
|
(3,714
|
)
|
|
|
|
|
(15,332
|
)
|
|
|
|
(15,811
|
)
|
Operating expenses
|
|
|
|
(2,580
|
)
|
|
|
|
(2,577
|
)
|
|
|
|
|
(10,316
|
)
|
|
|
|
(10,592
|
)
|
Total
|
|
|
$
|
1
|
|
|
|
$
|
3
|
|
|
|
|
$
|
42
|
|
|
|
$
|
(32
|
)
|
Consolidated Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
$
|
464,919
|
|
|
|
$
|
681,738
|
|
|
|
|
$
|
2,084,040
|
|
|
|
$
|
3,075,118
|
|
Cost of product sales
|
|
|
|
169,500
|
|
|
|
|
389,020
|
|
|
|
|
|
907,574
|
|
|
|
|
1,967,528
|
|
Operating expenses
|
|
|
|
117,612
|
|
|
|
|
135,359
|
|
|
|
|
|
473,031
|
|
|
|
|
472,925
|
|
Depreciation and amortization expense
|
|
|
|
50,599
|
|
|
|
|
46,404
|
|
|
|
|
|
201,719
|
|
|
|
|
181,555
|
|
Segment operating income
|
|
|
|
127,208
|
|
|
|
|
110,955
|
|
|
|
|
|
501,716
|
|
|
|
|
453,110
|
|
General and administrative expenses
|
|
|
|
27,096
|
|
|
|
|
27,070
|
|
|
|
|
|
102,521
|
|
|
|
|
96,056
|
|
Other depreciation and amortization expense
|
|
|
|
2,088
|
|
|
|
|
2,539
|
|
|
|
|
|
8,491
|
|
|
|
|
10,153
|
|
Consolidated operating income
|
|
|
$
|
98,024
|
|
|
|
$
|
81,346
|
|
|
|
|
$
|
390,704
|
|
|
|
$
|
346,901
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 financial measures such as earnings
before interest, taxes, depreciation and amortization (EBITDA),
distributable cash flow (DCF), adjusted net income and adjusted
net income per unit (collectively, financial measures), which are
not defined in U.S. generally accepted accounting principles
(GAAP). 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 financial measures provide investors an enhanced perspective
of the operating performance of the partnership’s assets and/or
the cash that the business is generating. None of these financial
measures are presented as an alternative to net income or income
from continuing operations. They should not be considered in
isolation or as substitutes for a measure of performance prepared
in accordance with GAAP. For purposes of segment reporting, we do
not allocate general and administrative expenses to our reported
operating segments because those expenses relate primarily to the
overall management at the entity level. Therefore, EBITDA
reflected in the segment reconciliations exclude any allocation of
general and administrative expenses consistent with our policy for
determining segmental operating income, the most directly
comparable GAAP measure.
|
|
|
|
|
|
The following is a reconciliation of income from continuing
operations to EBITDA from continuing operations and DCF from
continuing operations:
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
Year Ended December 31,
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
Income from continuing operations
|
|
|
$
|
59,480
|
|
|
|
$
|
54,869
|
|
|
|
|
$
|
305,946
|
|
|
|
$
|
214,169
|
|
Plus interest expense, net
|
|
|
|
33,559
|
|
|
|
|
31,735
|
|
|
|
|
|
131,868
|
|
|
|
|
131,226
|
|
Plus income tax expense
|
|
|
|
4,915
|
|
|
|
|
484
|
|
|
|
|
|
14,712
|
|
|
|
|
10,801
|
|
Plus depreciation and amortization expense
|
|
|
|
52,687
|
|
|
|
|
48,943
|
|
|
|
|
|
210,210
|
|
|
|
|
191,708
|
|
EBITDA from continuing operations
|
|
|
|
150,641
|
|
|
|
|
136,031
|
|
|
|
|
|
662,736
|
|
|
|
|
547,904
|
|
Equity in earnings of joint ventures
|
|
|
|
—
|
|
|
|
|
(3,059
|
)
|
|
|
|
|
—
|
|
|
|
|
(4,796
|
)
|
Interest expense, net
|
|
|
|
(33,559
|
)
|
|
|
|
(31,735
|
)
|
|
|
|
|
(131,868
|
)
|
|
|
|
(131,226
|
)
|
Reliability capital expenditures
|
|
|
|
(17,936
|
)
|
|
|
|
(10,373
|
)
|
|
|
|
|
(40,002
|
)
|
|
|
|
(28,635
|
)
|
Income tax expense
|
|
|
|
(4,915
|
)
|
|
|
|
(484
|
)
|
|
|
|
|
(14,712
|
)
|
|
|
|
(10,801
|
)
|
Distributions from joint ventures
|
|
|
|
—
|
|
|
|
|
1,708
|
|
|
|
|
|
2,500
|
|
|
|
|
7,587
|
|
Other items (a)
|
|
|
|
9,282
|
|
|
|
|
11,686
|
|
|
|
|
|
(44,032
|
)
|
|
|
|
19,732
|
|
Mark-to-market impact on hedge transactions (b)
|
|
|
|
(1,120
|
)
|
|
|
|
4,399
|
|
|
|
|
|
(5,651
|
)
|
|
|
|
6,125
|
|
DCF from continuing operations
|
|
|
$
|
102,393
|
|
|
|
$
|
108,173
|
|
|
|
|
$
|
428,971
|
|
|
|
$
|
405,890
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less DCF from continuing operations available to general partner
|
|
|
|
12,766
|
|
|
|
|
12,766
|
|
|
|
|
|
51,064
|
|
|
|
|
51,064
|
|
DCF from continuing operations available to limited partners
|
|
|
$
|
89,627
|
|
|
|
$
|
95,407
|
|
|
|
|
$
|
377,907
|
|
|
|
$
|
354,826
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DCF from continuing operations per limited partner unit
|
|
|
$
|
1.15
|
|
|
|
$
|
1.23
|
|
|
|
|
$
|
4.85
|
|
|
|
$
|
4.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
Other items mainly consist of (i) a ($56.3 million) non-cash gain
and insurance proceeds of $7.8 million mainly received in the fourth
quarter of 2015, associated with the Linden terminal acquisition on
January 2, 2015; (ii) a lower of cost or market adjustment of $3.8
million for the three months and year ended December 31, 2014 and
(iii) the net change in deferred revenue associated with throughput
deficiency payments and construction reimbursements for all periods
presented.
|
|
|
|
(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 net income per unit
to adjusted net income applicable to limited partners and adjusted net
income per unit:
|
|
|
Year Ended December 31, 2015
|
Net income / net income per unit
|
|
|
$
|
306,720
|
|
|
|
$
|
3.30
|
|
Gain on Linden terminal acquisition
|
|
|
|
(56,277
|
)
|
|
|
|
(0.71
|
)
|
Adjusted net income
|
|
|
|
250,443
|
|
|
|
|
GP interest and incentive
|
|
|
|
(48,228
|
)
|
|
|
|
Adjusted net income applicable to limited partners / adjusted net
income per unit
|
|
|
$
|
202,215
|
|
|
|
$
|
2.59
|
|
|
|
|
|
|
|
|
|
|
|
|
The following is a reconciliation of EBITDA from continuing operations
to adjusted EBITDA from continuing operations:
|
|
|
Year Ended December 31, 2015
|
EBITDA from continuing operations
|
|
|
$
|
662,736
|
|
Gain on Linden terminal acquisition
|
|
|
|
(56,277
|
)
|
Adjusted EBITDA from continuing operations
|
|
|
$
|
606,459
|
|
|
|
|
|
|
|
The following are reconciliations of projected operating income to
projected EBITDA for our reported segments:
|
|
|
Year Ended December 31, 2016
|
|
|
|
Pipeline
|
|
|
Storage
|
|
|
Fuels Marketing
|
Projected operating income
|
|
|
$ 250,000 - 265,000
|
|
|
$ 195,000 - 210,000
|
|
|
$ 15,000 - 35,000
|
Plus projected depreciation and amortization expense
|
|
|
85,000 - 90,000
|
|
|
115,000 - 120,000
|
|
|
—
|
Projected EBITDA
|
|
|
$ 335,000 - 355,000
|
|
|
$ 310,000 - 330,000
|
|
|
$ 15,000 - 35,000
|
|
|
|
|
|
|
|
|
|
|
(2) The consolidated debt coverage ratio is calculated as consolidated
debt to consolidated EBITDA, each as defined in our $1.5 billion
five-year revolving credit agreement.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160129005274/en/ Copyright Business Wire 2016
Source: Business Wire
(January 29, 2016 - 6:40 AM EST)
News by QuoteMedia
www.quotemedia.com
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