August 8, 2019 - 6:45 AM EDT
Print Email Article Font Down Font Up Charts

NuStar Energy L.P. Reports Strong Second Quarter 2019 Earnings Results

SAN ANTONIO

Net Income, EBITDA and DCF All Up Quarter over Quarter

Closed on Sale of St. Eustatius Terminal for $250 Million

Early Service of Corpus Christi Export Project is Complete and Ready for Service

Permian Crude System Volumes Currently Approaching 400,000 Barrels Per Day; Quarterly Average Up 200% Since System Acquisition in May 2017

South Texas Crude Oil Pipeline System Records Throughput Volumes Near Historical Highs

NuStar Energy L.P. (NYSE:NS) reported strong second quarter 2019 earnings results, highlighted NuStar’s significant progress on its 2019 capital projects program and outlined NuStar’s expectations for the second half of 2019 and beyond.

“We generated great results this quarter,” said Brad Barron, president and chief executive officer of NuStar Energy L.P. “All our key indicators were up in the second quarter, including net income, total pipeline and storage segment revenue, earnings before interest, taxes, depreciation and amortization (EBITDA), and distributable cash flow (DCF) available to common limited partners.”

Barron noted that NuStar has continued to substantially improve its debt metrics, pointing to a second quarter 2019 Debt-to-EBITDA ratio of 3.95 times, which is a significant improvement over the 4.72 times ratio at the end of the second quarter of 2018.

“I am very pleased that we were able to close on our sale of the St. Eustatius operations at a healthy double-digit multiple in July, and that sale, along with the EBITDA improvement evident in our results for the quarter, has allowed us to lower our year-end 2019 Debt-to-EBITDA ratio projection to 4.1 times,” Barron said. “What’s more, the sale of the St. Eustatius operations not only lowered our leverage; it also simplified our business, reduced our risk profile, lowered our 2019 reliability capital, and allows us to focus 100% on our core business here in North America.”

Barron explained that the majority of NuStar’s 2019 spending is earmarked for the build-out of its Permian Crude System, as well as its projects to deploy under-utilized assets to supply refined products to Northern Mexico and its Corpus Christi export project.

He also announced that the first stage of NuStar’s Corpus export project, which utilizes its 16” pipeline in South Texas to receive and transport WTI volumes from a connection to Cactus II to its Corpus Christi export facility, is now complete and ready for service.

“We are excited to report that, starting as soon as next week, our Corpus Christi dock facility will be the first in the Port of Corpus Christi to export barrels transported to South Texas via one of three large Permian long-haul pipeline projects. The second stage of our export project, a new 8-mile 30” pipeline to transport WTI volumes from a connection to Cactus II in Taft, Texas to our Corpus Christi terminal is also on-schedule to be in service this quarter, as are our two projects to supply refined products to Northern Mexico,” Barron said.

Commenting on the full-year and beyond, Barron said, “We expect NuStar to continue to generate solid results this year, as we continue to expect adjusted EBITDA in the range of $665-$715 million, and we expect our DCF coverage for the year to be a strong 1.3 times to 1.4 times. And in 2020, when the cash flows from our current capital projects are fully ramped up and we plan to spend significantly less strategic capital, we expect our results to be even stronger,” said Barron.

Second Quarter 2019 Results, Impact of Non-Cash Impairment and Full-Year Projections

NuStar Executive Vice President and Chief Financial Officer, Tom Shoaf, outlined NuStar’s financial results for the second quarter of 2019.

“In connection with the sale of our St. Eustatius operations to Prostar Capital, the results for the St. Eustatius operations for all periods presented in our earnings tables are now reported within discontinued operations. Further, discontinued operations for the prior year periods include the results for our European operations, which were sold in late 2018. Our reported second quarter results, which include adjusted net income, adjusted EPU, adjusted EBITDA, DCF and related metrics, include results for both continuing and discontinued operations. Excluded from these measures is a non-cash impairment charge totaling $8.4 million, related to the St. Eustatius divestiture,” Shoaf noted.

 

Three Months Ended June 30, 2019

 

Three Months Ended June 30, 2018

 

Unadjusted

 

Adjusted

 

Unadjusted

 

Adjusted

 

(thousands of dollars, except per unit data)

Net income

$

45,951

 

 

$

54,349

 

 

$

29,399

 

 

$

29,399

 

EPU

$

0.10

 

 

$

0.18

 

 

$

0.15

 

 

$

0.15

 

EBITDA

$

160,808

 

 

$

169,206

 

 

$

157,114

 

 

$

157,114

 

Distributable cash flow available to common limited partners

$

89,755

 

 

$

89,755

 

 

$

82,057

 

 

$

82,057

 

“NuStar’s adjusted net income was $54 million for the second quarter of 2019, up $25 million or 85% compared to net income of $29 million for the second quarter of 2018. Second quarter 2019 adjusted earnings per unit (EPU) were $0.18 per unit, higher than EPU of $0.15 in the second quarter of 2018, even with the dilutive impact of our merger to simplify our structure and eliminate our IDRs.

“For the second quarter of 2019, we generated adjusted EBITDA of $169 million, up $12 million or 8% over second quarter 2018 EBITDA of $157 million.”

Shoaf also noted that NuStar’s second quarter 2019 earnings benefited from strong pipeline segment results due to the continued throughput volume ramp on its Permian Crude System, and increased crude volumes on its Ardmore system resulting from its recent connection to the Sunrise pipeline at Wichita Falls. He also stated that the storage side of NuStar’s business saw increased storage and dock fee revenues at its Corpus Christi North Beach terminal from increased quarterly volume receipts on its South Texas Crude System, as well as the start-up of revenue from some recently completed West Coast biofuel storage projects.

Shoaf went on to say that, “Second quarter 2019 distributable cash flow (DCF) available to common limited partners was $90 million, up $8 million from second quarter 2018 DCF available to common limited partners of $82 million. And he further noted that, “The distribution coverage ratio to the common limited partners was a strong 1.39 times for the second quarter of 2019.”

Conference Call Details

A conference call with management is scheduled for 10:00 a.m. CT today, August 8, 2019. The conference call may be accessed by dialing toll-free 844/889-7787, reservation passcode 9899738. International callers may access the conference call by dialing 661/378-9931, reservation passcode 9899738. The Partnership intends to have a playback available following the conference call, which may be accessed by dialing toll-free 855/859-2056, reservation passcode 9899738. International callers may access the playback by dialing 404/537-3406, reservation passcode 9899738. The playback will be available until 1:00 p.m. CT on September 7, 2019.

Investors interested in listening to the live discussion or a replay via the internet may access the discussion directly at https://edge.media-server.com/mmc/p/eiae9hed or by logging on to NuStar Energy L.P.’s website at www.nustarenergy.com.

The discussion 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 website 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 9,800 miles of pipeline and 74 terminal and storage facilities that store and distribute crude oil, refined products and specialty liquids. The partnership’s combined system has approximately 74 million barrels of storage capacity, and NuStar has operations in the United States, Canada and Mexico. For more information, visit NuStar Energy L.P.’s website at www.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, 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 2018 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.

 

NuStar Energy L.P. and Subsidiaries

Consolidated Financial Information

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

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2019

 

2018

 

2019

 

2018

Statement of Income Data:

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

Service revenues

$

282,472

 

 

$

259,599

 

 

$

541,499

 

 

$

507,668

 

Product sales

89,973

 

 

129,657

 

 

178,772

 

 

258,315

 

Total revenues

372,445

 

 

389,256

 

 

720,271

 

 

765,983

 

Costs and expenses:

 

 

 

 

 

 

 

Costs associated with service revenues:

 

 

 

 

 

 

 

Operating expenses

101,095

 

 

102,241

 

 

196,506

 

 

190,320

 

Depreciation and amortization expense

64,991

 

 

61,777

 

 

129,809

 

 

121,601

 

Total costs associated with service revenues

166,086

 

 

164,018

 

 

326,315

 

 

311,921

 

Cost of product sales

86,389

 

 

119,939

 

 

172,571

 

 

245,089

 

General and administrative expenses

24,868

 

 

26,754

 

 

50,559

 

 

44,896

 

Other depreciation and amortization expense

1,819

 

 

2,158

 

 

3,938

 

 

4,197

 

Total costs and expenses

279,162

 

 

312,869

 

 

553,383

 

 

606,103

 

Operating income

93,283

 

 

76,387

 

 

166,888

 

 

159,880

 

Interest expense, net

(45,693

)

 

(48,389

)

 

(89,984

)

 

(95,777

)

Other income, net

621

 

 

1,607

 

 

1,412

 

 

2,623

 

Income from continuing operations before income tax expense

48,211

 

 

29,605

 

 

78,316

 

 

66,726

 

Income tax expense

1,296

 

 

2,696

 

 

2,478

 

 

6,584

 

Income from continuing operations, net of tax

46,915

 

 

26,909

 

 

75,838

 

 

60,142

 

(Loss) income from discontinued operations, net of tax

(964

)

 

2,490

 

 

(307,750

)

 

95,390

 

Net income (loss)

$

45,951

 

 

$

29,399

 

 

$

(231,912

)

 

$

155,532

 

 

 

 

 

 

 

 

 

Basic net income (loss) per common unit:

 

 

 

 

 

 

 

Continuing operations

$

0.11

 

 

$

0.12

 

 

$

0.05

 

 

$

0.30

 

Discontinued operations

(0.01

)

 

0.03

 

 

(2.86

)

 

1.00

 

Total net income (loss) per common unit

$

0.10

 

 

$

0.15

 

 

$

(2.81

)

 

$

1.30

 

 

 

 

 

 

 

 

 

Basic weighted-average common units outstanding

107,763,016

 

 

93,192,238

 

 

107,647,957

 

 

93,187,038

 

 

 

 

 

 

 

 

 

Other Data:

 

 

 

 

 

 

 

EBITDA (Note 1)

$

160,808

 

 

$

157,114

 

 

$

2,902

 

 

$

407,361

 

DCF available to common limited partners (Note 1)

$

89,755

 

 

$

82,057

 

 

$

184,806

 

 

$

173,789

 

Adjusted EBITDA (Note 2)

$

169,206

 

 

$

157,114

 

 

$

339,740

 

 

$

328,605

 

Adjusted net income (Note 3)

$

54,349

 

 

$

29,399

 

 

$

104,926

 

 

$

76,776

 

Adjusted EPU (Note 3)

$

0.18

 

 

$

0.15

 

 

$

0.32

 

 

$

0.48

 

 
 

 

June 30,

 

December 31,

 

2019

 

2018

 

2018

Balance Sheet Data:

 

 

 

 

 

Total debt

$

3,466,548

 

 

$

3,443,366

 

 

$

3,130,496

 

Partners’ equity and series D preferred units

$

2,401,900

 

 

$

2,827,188

 

 

$

2,821,723

 

 
 

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,

 

2019

 

2018

 

2019

 

2018

Pipeline:

 

 

 

 

 

 

 

Crude oil pipelines throughput (barrels/day)

1,089,848

 

 

839,574

 

 

1,054,425

 

 

815,568

 

Refined products and ammonia pipelines throughput (barrels/day)

569,820

 

 

565,740

 

 

536,836

 

 

548,910

 

Total throughput (barrels/day)

1,659,668

 

 

1,405,314

 

 

1,591,261

 

 

1,364,478

 

Throughput and other revenues

$

172,493

 

 

$

150,276

 

 

$

328,744

 

 

$

287,066

 

Operating expenses

52,930

 

 

48,706

 

 

101,028

 

 

91,047

 

Depreciation and amortization expense

40,851

 

 

38,591

 

 

81,700

 

 

75,246

 

Segment operating income

$

78,712

 

 

$

62,979

 

 

$

146,016

 

 

$

120,773

 

Storage:

 

 

 

 

 

 

 

Throughput (barrels/day)

395,512

 

 

331,917

 

 

380,267

 

 

337,892

 

Throughput terminal revenues

$

23,170

 

 

$

20,141

 

 

$

44,856

 

 

$

40,157

 

Storage terminal revenues

87,233

 

 

94,679

 

 

169,047

 

 

186,083

 

Total revenues

110,403

 

 

114,820

 

 

213,903

 

 

226,240

 

Operating expenses

48,165

 

 

52,853

 

 

95,478

 

 

98,017

 

Depreciation and amortization expense

24,140

 

 

23,186

 

 

48,109

 

 

46,355

 

Segment operating income

$

38,098

 

 

$

38,781

 

 

$

70,316

 

 

$

81,868

 

Fuels Marketing:

 

 

 

 

 

 

 

Product sales

$

89,549

 

 

$

124,293

 

 

$

177,628

 

 

$

252,951

 

Cost of goods

85,802

 

 

119,942

 

 

171,303

 

 

245,107

 

Gross margin

3,747

 

 

4,351

 

 

6,325

 

 

7,844

 

Operating expenses

587

 

 

815

 

 

1,240

 

 

1,512

 

Segment operating income

$

3,160

 

 

$

3,536

 

 

$

5,085

 

 

$

6,332

 

Consolidation and Intersegment Eliminations:

 

 

 

 

 

 

 

Revenues

$

 

 

$

(133

)

 

$

(4

)

 

$

(274

)

Cost of goods

 

 

(3

)

 

28

 

 

(18

)

Operating expenses

 

 

(133

)

 

 

 

(256

)

Total

$

 

 

$

3

 

 

$

(32

)

 

$

 

Consolidated Information:

 

 

 

 

 

 

 

Revenues

$

372,445

 

 

$

389,256

 

 

$

720,271

 

 

$

765,983

 

Costs associated with service revenues:

 

 

 

 

 

 

 

Operating expenses

101,095

 

 

102,241

 

 

196,506

 

 

190,320

 

Depreciation and amortization expense

64,991

 

 

61,777

 

 

129,809

 

 

121,601

 

Total costs associated with service revenues

166,086

 

 

164,018

 

 

326,315

 

 

311,921

 

Cost of product sales

86,389

 

 

119,939

 

 

172,571

 

 

245,089

 

Segment operating income

119,970

 

 

105,299

 

 

221,385

 

 

208,973

 

General and administrative expenses

24,868

 

 

26,754

 

 

50,559

 

 

44,896

 

Other depreciation and amortization expense

1,819

 

 

2,158

 

 

3,938

 

 

4,197

 

Consolidated operating income

$

93,283

 

 

$

76,387

 

 

$

166,888

 

 

$

159,880

 

 

NuStar Energy L.P. and Subsidiaries

Consolidated Financial Information - Continued

(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 also use adjusted measures of net income, net income per common unit and EBITDA, which are not defined in GAAP, to enhance the comparability of 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 a distribution coverage ratio, which is calculated based on DCF, as one of the factors in its compensation determinations. DCF is a widely accepted 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 (loss) to EBITDA, DCF and distribution coverage ratio; therefore, the reconciling items include activity from continuing and discontinued operations on a combined basis.

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2019

 

2018

 

2019

 

2018

Net income (loss)

$

45,951

 

 

$

29,399

 

 

$

(231,912

)

 

$

155,532

 

Interest expense, net

45,684

 

 

48,936

 

 

89,952

 

 

96,708

 

Income tax expense

1,296

 

 

2,915

 

 

2,579

 

 

7,242

 

Depreciation and amortization expense

67,877

 

 

75,864

 

 

142,283

 

 

147,879

 

EBITDA

160,808

 

 

157,114

 

 

2,902

 

 

407,361

 

Interest expense, net

(45,684

)

 

(48,936

)

 

(89,952

)

 

(96,708

)

Reliability capital expenditures

(17,632

)

 

(21,913

)

 

(27,176

)

 

(41,795

)

Income tax expense

(1,296

)

 

(2,915

)

 

(2,579

)

 

(7,242

)

Long-term incentive equity awards (a)

2,168

 

 

1,783

 

 

4,535

 

 

3,120

 

Preferred unit distributions

(30,423

)

 

(16,245

)

 

(60,846

)

 

(32,235

)

Insurance gain adjustment (b)

10,379

 

 

10,609

 

 

15,512

 

 

(55,753

)

Impairment losses (c)

8,398

 

 

 

 

336,838

 

 

 

Other items

3,037

 

 

2,560

 

 

5,572

 

 

(1,818

)

DCF

$

89,755

 

 

$

82,057

 

 

$

184,806

 

 

$

174,930

 

Less DCF available to general partner

 

 

 

 

 

 

1,141

 

DCF available to common limited partners

$

89,755

 

 

$

82,057

 

 

$

184,806

 

 

$

173,789

 

 

 

 

 

 

 

 

 

Distributions applicable to common limited partners

$

64,658

 

 

$

64,205

 

 

$

129,348

 

 

$

120,121

 

Distribution coverage ratio (d)

1.39

x

 

1.28

x

 

1.43

x

 

1.45

x
 
 

NuStar Energy L.P. and Subsidiaries

Consolidated Financial Information - Continued

(Unaudited, Thousands of Dollars, Except Ratio Data)

 

 

Projected for the Year
Ended December 31, 2019

Net loss

$ (127,000 - 102,000)

Interest expense, net

180,000 - 190,000

Income tax expense

5,000 - 10,000

Depreciation and amortization expense

270,000 - 280,000

EBITDA

328,000 - 378,000

Interest expense, net

(180,000) - (190,000)

Reliability capital expenditures

(60,000) - (80,000)

Income tax expense

(5,000) - (10,000)

Long-term incentive equity awards (a)

5,000 - 10,000

Preferred unit distributions

(120,000) - (125,000)

Insurance gain adjustment (b)

15,000 - 20,000

Impairment losses (c)

337,000

Other items

5,000 - 15,000

DCF available to common limited partners

$ 325,000 - 355,000

 

 

Distributions applicable to common limited partners

$ 255,000 - 260,000

Distribution coverage ratio (d)

1.3x - 1.4x

  1. 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.
  2. For the six months ended June 30, 2018, DCF includes an adjustment for insurance proceeds received related to hurricane damage at our St. Eustatius terminal. Each quarter we add an amount to DCF to offset the amount of reliability capital expenditures incurred related to hurricane damage.
  3. Represents non-cash impairment losses associated with long-lived assets and goodwill at our St. Eustatius terminal.
  4. Distribution coverage ratio is calculated by dividing DCF available to common limited partners by distributions applicable to common limited partners.

Note 2: The following is a reconciliation of EBITDA to adjusted EBITDA:

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

Projected for the Year
Ended December 31, 2019

 

2019

 

2018

 

2019

 

2018

 

EBITDA

$

160,808

 

 

$

157,114

 

 

$

2,902

 

 

$

407,361

 

 

$ 328,000 - 378,000

Impairment losses

8,398

 

 

 

 

336,838

 

 

 

 

337,000

Gain from hurricane insurance proceeds

 

 

 

 

 

 

(78,756

)

 

Adjusted EBITDA

$

169,206

 

 

$

157,114

 

 

$

339,740

 

 

$

328,605

 

 

$ 665,000 - 715,000

 

NuStar Energy L.P. and Subsidiaries

Consolidated Financial Information - Continued

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

Note 3: The following is a reconciliation of net income (loss) and net income (loss) per common unit to adjusted net income applicable to common limited partners and adjusted net income per common unit:

 

Three Months Ended June 30,

 

2019

 

2018

Net income / net income per common unit

$

45,951

 

 

$

0.10

 

 

$

29,399

 

 

$

0.15

 

Impairment loss

8,398

 

 

0.08

 

 

 

 

 

Adjusted net income

54,349

 

 

 

 

29,399

 

 

 

Net income applicable to preferred limited partners, general partner and other

(35,511

)

 

 

 

(15,694

)

 

 

Adjusted net income applicable to common limited partners / adjusted net income per common unit

$

18,838

 

 

$

0.18

 

 

$

13,705

 

 

$

0.15

 

 

Six Months Ended June 30,

 

2019

 

2018

Net (loss) income / net (loss) income per common unit

$

(231,912

)

 

$

(2.81

)

 

$

155,532

 

 

$

1.30

 

Impairment losses

336,838

 

 

3.13

 

 

 

 

 

Gain from hurricane insurance proceeds

 

 

 

 

(78,756

)

 

(0.82

)

Adjusted net income

104,926

 

 

 

 

76,776

 

 

 

Net income applicable to preferred limited partners, general partner and other

(70,879

)

 

 

 

(32,748

)

 

 

Adjusted net income applicable to common limited partners / adjusted net income per common unit

$

34,047

 

 

$

0.32

 

 

$

44,028

 

 

$

0.48

 

 

NuStar Energy L.P. and Subsidiaries

Consolidated Financial Information - Continued

(Unaudited, Thousands of Dollars, Except Ratio Data)

Note 4: 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,

 

Projected for the
Year Ended December 31, 2019

 

2019

 

2018

 

Net (loss) income

$

(181,650

)

 

$

219,306

 

 

$ (127,000 - 102,000

)

Interest expense, net

179,481

 

 

187,765

 

 

180,000 - 190,000

Income tax expense

6,745

 

 

12,624

 

 

5,000 - 10,000

Depreciation and amortization expense

292,278

 

 

287,646

 

 

270,000 - 280,000

EBITDA

296,854

 

 

707,341

 

 

328,000 - 378,000

Impairment losses (a)

336,838

 

 

 

 

 

Other expense (income) (b)

38,709

 

 

(75,642

)

 

 

Equity awards (c)

12,140

 

 

7,292

 

 

5,000 - 10,000

Pro forma effect of disposition (d)

(7,638

)

 

 

 

295,000 - 305,000

Material project adjustments and other items (e)

79,901

 

 

(1,637

)

 

50,000 - 70,000

Consolidated EBITDA, as defined in the Revolving Credit Agreement

$

756,804

 

 

$

637,354

 

 

$ 678,000 - 763,000

 

 

 

 

 

 

Total consolidated debt

$

3,429,740

 

 

$

3,454,998

 

 

$ 3,250,000 - 3,550,000

NuStar Logistics' floating rate subordinated notes

(402,500

)

 

(402,500

)

 

(402,500

)

Proceeds held in escrow associated with the Gulf Opportunity Zone Revenue Bonds

(41,476

)

 

(41,476

)

 

(41,500

)

Consolidated Debt, as defined in the Revolving Credit Agreement

$

2,985,764

 

 

$

3,011,022

 

 

$ 2,806,000 - 3,106,000

 

 

 

 

 

 

Consolidated Debt Coverage Ratio (Consolidated Debt to

Consolidated EBITDA)

3.95

x

 

4.72

x

 

4.1

x

  1. Represents non-cash impairment losses associated with long-lived assets and goodwill at our St. Eustatius terminal.
  2. Other expense is excluded for purposes of calculating Consolidated EBITDA, as defined in the Revolving Credit Agreement.
  3. This adjustment represents the non-cash expense related to the vestings of equity-based awards with the issuance of our common units.
  4. For the four quarters ended June 30, 2018, this adjustment represents the pro forma effects of the sale of our European operations as if we had completed the sale on January 1, 2018. For the year ended December 31, 2019, this adjustment represents the pro forma effects of the sale of our St. Eustatius operations as if we had completed the sale on January 1, 2019.
  5. This adjustment represents the percentage of the projected Consolidated EBITDA attributable to any Material Project and other noncash items, as defined in the Revolving Credit Agreement.

 

NuStar Energy, L.P., San Antonio
Investors, Tim Delagarza, Manager, 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
website: http://www.nustarenergy.com


Source: Business Wire (August 8, 2019 - 6:45 AM EDT)

News by QuoteMedia
www.quotemedia.com

Legal Notice