x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended March 31, 2013 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from _______ to _______ |
Delaware | 74-2956831 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
19003 IH-10 West San Antonio, Texas | 78257 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | x | Accelerated filer | £ | ||
Non-accelerated filer | o (Do not check if a smaller reporting company) | Smaller reporting company | £ |
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 1. | ||
Item 6. | ||
Item 1. | Financial Statements |
March 31, 2013 | December 31, 2012 | ||||||
(Unaudited) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 116,513 | $ | 83,602 | |||
Accounts receivable, net of allowance for doubtful accounts of $837 and $808 as of March 31, 2013 and December 31, 2012, respectively | 336,759 | 387,943 | |||||
Receivable from related parties | 89,366 | 109,833 | |||||
Inventories | 227,626 | 173,228 | |||||
Income tax receivable | 1,186 | 1,265 | |||||
Other current assets | 46,351 | 65,238 | |||||
Assets held for sale | 2,847 | 118,334 | |||||
Total current assets | 820,648 | 939,443 | |||||
Property, plant and equipment, at cost | 4,319,606 | 4,287,859 | |||||
Accumulated depreciation and amortization | (1,080,051 | ) | (1,049,399 | ) | |||
Property, plant and equipment, net | 3,239,555 | 3,238,460 | |||||
Intangible assets, net | 88,935 | 92,435 | |||||
Goodwill | 950,586 | 951,024 | |||||
Investment in joint ventures | 87,572 | 102,945 | |||||
Deferred income tax asset | 3,832 | 3,108 | |||||
Note receivable from related party | 159,200 | 95,711 | |||||
Other long-term assets, net | 196,702 | 189,963 | |||||
Total assets | $ | 5,547,030 | $ | 5,613,089 | |||
Liabilities and Partners’ Equity | |||||||
Current liabilities: | |||||||
Current portion of long-term debt | $ | 282,245 | $ | 286,422 | |||
Accounts payable | 428,843 | 397,633 | |||||
Payable to related party | 11,758 | 1,408 | |||||
Accrued interest payable | 30,538 | 23,741 | |||||
Accrued liabilities | 80,401 | 124,203 | |||||
Taxes other than income tax | 7,772 | 9,893 | |||||
Income tax payable | 4,813 | 2,671 | |||||
Total current liabilities | 846,370 | 845,971 | |||||
Long-term debt, less current portion | 2,136,072 | 2,124,582 | |||||
Long-term payable to related party | 18,806 | 18,071 | |||||
Deferred income tax liability | 30,288 | 32,114 | |||||
Other long-term liabilities | 6,314 | 7,356 | |||||
Commitments and contingencies (Note 5) | |||||||
Partners’ equity: | |||||||
Limited partners (77,886,078 common units outstanding as of March 31, 2012 and December 31, 2012) | 2,501,684 | 2,573,263 | |||||
General partner | 56,301 | 57,986 | |||||
Accumulated other comprehensive loss | (60,968 | ) | (58,865 | ) | |||
Total NuStar Energy L.P. partners’ equity | 2,497,017 | 2,572,384 | |||||
Noncontrolling interest | 12,163 | 12,611 | |||||
Total partners’ equity | 2,509,180 | 2,584,995 | |||||
Total liabilities and partners’ equity | $ | 5,547,030 | $ | 5,613,089 |
Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
Revenues: | |||||||
Service revenues: | |||||||
Third parties | $ | 225,272 | $ | 209,022 | |||
Related party | 2,011 | 697 | |||||
Total service revenues | 227,283 | 209,719 | |||||
Product sales | 772,427 | 1,399,686 | |||||
Total revenues | 999,710 | 1,609,405 | |||||
Costs and expenses: | |||||||
Cost of product sales | 752,254 | 1,354,530 | |||||
Operating expenses: | |||||||
Third parties | 84,583 | 88,337 | |||||
Related party | 32,991 | 36,777 | |||||
Total operating expenses | 117,574 | 125,114 | |||||
General and administrative expenses: | |||||||
Third parties | 8,710 | 8,018 | |||||
Related party | 18,784 | 19,149 | |||||
Total general and administrative expenses | 27,494 | 27,167 | |||||
Depreciation and amortization expense | 42,926 | 43,575 | |||||
Total costs and expenses | 940,248 | 1,550,386 | |||||
Operating income | 59,462 | 59,019 | |||||
Equity in (loss) earnings of joint ventures | (11,143 | ) | 2,386 | ||||
Interest expense, net | (31,235 | ) | (21,377 | ) | |||
Interest income from related party | 1,122 | — | |||||
Other income, net | 368 | 1,367 | |||||
Income from continuing operations before income tax expense | 18,574 | 41,395 | |||||
Income tax expense | 2,536 | 3,443 | |||||
Income from continuing operations | 16,038 | 37,952 | |||||
Income (loss) from discontinued operations, net of tax | 8,366 | (11,698 | ) | ||||
Net income | 24,404 | 26,254 | |||||
Less net loss attributable to noncontrolling interest | (161 | ) | (97 | ) | |||
Net income attributable to NuStar Energy L.P. | $ | 24,565 | $ | 26,351 | |||
Net income (loss) per unit applicable to limited partners: | |||||||
Continuing operations | $ | 0.06 | $ | 0.39 | |||
Discontinued operations | 0.11 | (0.16 | ) | ||||
Total (Note 10) | $ | 0.17 | $ | 0.23 | |||
Weighted-average limited partner units outstanding | 77,886,078 | 70,756,078 | |||||
Comprehensive income (loss) | $ | 22,014 | $ | (10,772 | ) | ||
Less comprehensive (loss) income attributable to noncontrolling interest | (448 | ) | 1,022 | ||||
Comprehensive income (loss) attributable to NuStar Energy L.P. | $ | 22,462 | $ | (11,794 | ) |
Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
Cash Flows from Operating Activities: | |||||||
Net income | $ | 24,404 | $ | 26,254 | |||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||
Depreciation and amortization expense | 42,926 | 44,681 | |||||
Amortization of debt related items | (1,173 | ) | (2,912 | ) | |||
Gain from sale or disposition of assets | (9,204 | ) | (137 | ) | |||
Deferred income tax benefit | (1,192 | ) | (1,042 | ) | |||
Equity in loss (earnings) of joint ventures | 11,143 | (2,386 | ) | ||||
Distributions of equity in earnings of joint ventures | 4,652 | — | |||||
Changes in current assets and current liabilities (Note 11) | 73,586 | (76,458 | ) | ||||
Other, net | (742 | ) | 2,387 | ||||
Net cash provided by (used in) operating activities | 144,400 | (9,613 | ) | ||||
Cash Flows from Investing Activities: | |||||||
Reliability capital expenditures | (5,742 | ) | (6,805 | ) | |||
Strategic capital expenditures | (46,822 | ) | (93,479 | ) | |||
Investment in other long-term assets | — | (94 | ) | ||||
Proceeds from the San Antonio Refinery Sale | 112,715 | — | |||||
Increase in note receivable from related party | (63,489 | ) | — | ||||
Other, net | 220 | 164 | |||||
Net cash used in investing activities | (3,118 | ) | (100,214 | ) | |||
Cash Flows from Financing Activities: | |||||||
Proceeds from long-term debt borrowings | 334,226 | 454,118 | |||||
Proceeds from short-term debt borrowings | — | 56,430 | |||||
Proceeds from note offering, net of issuance costs | 391,217 | 247,408 | |||||
Long-term debt repayments | (718,205 | ) | (453,944 | ) | |||
Short-term debt repayments | (577 | ) | (56,430 | ) | |||
Distributions to unitholders and general partner | (98,051 | ) | (89,076 | ) | |||
Payments for termination of interest rate swaps | (16,255 | ) | (25,358 | ) | |||
Other, net | 76 | (3,228 | ) | ||||
Net cash (used in) provided by financing activities | (107,569 | ) | 129,920 | ||||
Effect of foreign exchange rate changes on cash | (802 | ) | 106 | ||||
Net increase in cash and cash equivalents | 32,911 | 20,199 | |||||
Cash and cash equivalents as of the beginning of the period | 83,602 | 17,497 | |||||
Cash and cash equivalents as of the end of the period | $ | 116,513 | $ | 37,696 |
Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
(Thousands of Dollars) | |||||||
Revenues | $ | 185 | $ | 126,287 | |||
Income (loss) before income tax expense | $ | 8,366 | $ | (11,670 | ) |
December 31, 2012 | |||
(Thousands of Dollars) | |||
Inventories | $ | 15,939 | |
Property, plant and equipment, net | 93,899 | ||
Other long-term assets, net | 5,650 | ||
Assets held for sale | $ | 115,488 | |
Accrued liabilities (environmental reserve) | $ | 289 | |
Other long-term liabilities (environmental reserve) | 7,621 | ||
Liabilities held for sale | $ | 7,910 |
March 31, 2013 | December 31, 2012 | ||||||
(Thousands of Dollars) | |||||||
Crude oil | $ | 973 | $ | 447 | |||
Finished products | 218,631 | 164,894 | |||||
Materials and supplies | 8,022 | 7,887 | |||||
Total | $ | 227,626 | $ | 173,228 |
March 31, 2013 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(Thousands of Dollars) | |||||||||||||||
Other current assets: | |||||||||||||||
Product imbalances | $ | 264 | $ | — | $ | — | $ | 264 | |||||||
Commodity derivatives | — | 7,753 | — | 7,753 | |||||||||||
Other long-term assets, net: | |||||||||||||||
Commodity derivatives | — | 8,802 | — | 8,802 | |||||||||||
Accrued liabilities: | |||||||||||||||
Product imbalances | (183 | ) | — | — | (183 | ) | |||||||||
Commodity derivatives | (3,097 | ) | (15,644 | ) | — | (18,741 | ) | ||||||||
Interest rate swaps | — | (19,968 | ) | — | (19,968 | ) | |||||||||
Other long-term liabilities: | |||||||||||||||
Commodity derivatives | — | (506 | ) | — | (506 | ) | |||||||||
Total | $ | (3,016 | ) | $ | (19,563 | ) | $ | — | $ | (22,579 | ) |
December 31, 2012 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(Thousands of Dollars) | |||||||||||||||
Other current assets: | |||||||||||||||
Product imbalances | $ | 1,232 | $ | — | $ | — | $ | 1,232 | |||||||
Commodity derivatives | 1,001 | 8,357 | — | 9,358 | |||||||||||
Other long-term assets, net: | |||||||||||||||
Commodity derivatives | — | 9,206 | — | 9,206 | |||||||||||
Accrued liabilities: | |||||||||||||||
Product imbalances | (1,686 | ) | — | — | (1,686 | ) | |||||||||
Commodity derivatives | — | (19,210 | ) | — | (19,210 | ) | |||||||||
Interest rate swaps | — | (40,911 | ) | — | (40,911 | ) | |||||||||
Total | $ | 547 | $ | (42,558 | ) | $ | — | $ | (42,011 | ) |
March 31, 2013 | December 31, 2012 | ||||||||||||||
Fair Value | Carrying Amount | Fair Value | Carrying Amount | ||||||||||||
(Thousands of Dollars) | |||||||||||||||
Debt | $ | 2,448,108 | $ | 2,418,317 | $ | 2,377,120 | $ | 2,411,004 | |||||||
Note receivable from related party | $ | 115,379 | $ | 159,200 | $ | 91,705 | $ | 95,711 |
Asset Derivatives | Liability Derivatives | ||||||||||||||||
Balance Sheet Location | March 31, 2013 | December 31, 2012 | March 31, 2013 | December 31, 2012 | |||||||||||||
(Thousands of Dollars) | |||||||||||||||||
Derivatives Designated as Hedging Instruments: | |||||||||||||||||
Commodity contracts | Other current assets | $ | — | $ | 1,471 | $ | — | $ | (811 | ) | |||||||
Commodity contracts | Accrued liabilities | 182 | — | (1,446 | ) | — | |||||||||||
Interest rate swaps | Accrued liabilities | — | — | (19,968 | ) | (40,911 | ) | ||||||||||
Total | 182 | 1,471 | (21,414 | ) | (41,722 | ) | |||||||||||
Derivatives Not Designated as Hedging Instruments: | |||||||||||||||||
Commodity contracts | Other current assets | 12,019 | 22,269 | (4,266 | ) | (13,571 | ) | ||||||||||
Commodity contracts | Other long-term assets, net | 23,867 | 39,322 | (15,065 | ) | (30,116 | ) | ||||||||||
Commodity contracts | Accrued liabilities | 27,650 | 17,406 | (45,127 | ) | (36,616 | ) | ||||||||||
Commodity contracts | Other long-term liabilities | 8,829 | — | (9,335 | ) | — | |||||||||||
Total | 72,365 | 78,997 | (73,793 | ) | (80,303 | ) | |||||||||||
Total Derivatives | $ | 72,547 | $ | 80,468 | $ | (95,207 | ) | $ | (122,025 | ) |
Commodity Contracts | March 31, 2013 | December 31, 2012 | ||||||
(Thousands of Dollars) | ||||||||
Net amounts of assets presented in the consolidated balance sheets | $ | 16,555 | $ | 18,564 | ||||
Net amounts of liabilities presented in the consolidated balance sheets | $ | (19,247 | ) | $ | (19,210 | ) |
Derivatives Designated as Fair Value Hedging Instruments | Income Statement Location | Amount of Gain (Loss) Recognized in Income on Derivative (Effective Portion) | Amount of Gain (Loss) Recognized in Income on Hedged Item | Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | ||||||||||
(Thousands of Dollars) | ||||||||||||||
Three months ended March 31, 2013: | ||||||||||||||
Commodity contracts | Cost of product sales | $ | (1,276 | ) | $ | 1,636 | $ | 360 | ||||||
Three months ended March 31, 2012: | ||||||||||||||
Interest rate swaps | Interest expense, net | $ | 2,228 | $ | (2,228 | ) | $ | — | ||||||
Commodity contracts | Cost of product sales | (2,587 | ) | 2,390 | (197 | ) | ||||||||
Total | $ | (359 | ) | $ | 162 | $ | (197 | ) |
Derivatives Designated as Cash Flow Hedging Instruments | Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | Income Statement Location (a) | Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | ||||||||||
(Thousands of Dollars) | (Thousands of Dollars) | |||||||||||||
Three months ended March 31, 2013: | ||||||||||||||
Interest rate swaps | $ | 4,687 | Interest expense, net | $ | (487 | ) | $ | — | ||||||
Three months ended March 31, 2012: | ||||||||||||||
Interest rate swaps | $ | 3,298 | Interest expense, net | $ | (423 | ) | $ | — | ||||||
Commodity contracts | (57,121 | ) | Income (loss) from discontinued operations | (7,344 | ) | 4,010 | ||||||||
Total | $ | (53,823 | ) | $ | (7,767 | ) | $ | 4,010 |
(a) | Amounts are included in specified location for both the gain (loss) reclassified from accumulated other comprehensive income (OCI) into income (effective portion) and the gain (loss) recognized in income on derivative (ineffective portion). |
Derivatives Not Designated as Hedging Instruments | Income Statement Location | Amount of Gain (Loss) Recognized in Income | ||||
(Thousands of Dollars) | ||||||
Three months ended March 31, 2013: | ||||||
Commodity contracts | Cost of product sales | $ | (6,827 | ) | ||
Commodity contracts | Operating expenses | (1 | ) | |||
Commodity contracts | Income (loss) from discontinued operations | (218 | ) | |||
Total | $ | (7,046 | ) | |||
Three months ended March 31, 2012: | ||||||
Commodity contracts | Revenues | $ | 510 | |||
Commodity contracts | Cost of product sales | 4,161 | ||||
Commodity contracts | Income (loss) from discontinued operations | (8,479 | ) | |||
Total | $ | (3,808 | ) |
Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
(Thousands of Dollars) | |||||||
Revenues | $ | 2,011 | $ | 697 | |||
Operating expenses | $ | 32,991 | $ | 36,777 | |||
General and administrative expenses | $ | 18,784 | $ | 19,149 | |||
Interest income | $ | 1,122 | $ | — | |||
Expenses included in discontinued operations, net of tax | $ | 382 | $ | 2,175 |
Three Months Ended March 31, 2013 | Three Months Ended March 31, 2012 | ||||||||||||||||||||||
NuStar Energy L.P. Partners’ Equity | Noncontrolling Interest | Total Partners’ Equity | NuStar Energy L.P. Partners’ Equity | Noncontrolling Interest | Total Partners’ Equity | ||||||||||||||||||
(Thousands of Dollars) | |||||||||||||||||||||||
Beginning balance | $ | 2,572,384 | $ | 12,611 | $ | 2,584,995 | $ | 2,852,201 | $ | 12,134 | $ | 2,864,335 | |||||||||||
Net (loss) income | 24,565 | (161 | ) | 24,404 | 26,351 | (97 | ) | 26,254 | |||||||||||||||
Other comprehensive (loss) income: | |||||||||||||||||||||||
Foreign currency translation adjustment | (7,277 | ) | (287 | ) | (7,564 | ) | 7,911 | 1,119 | 9,030 | ||||||||||||||
Net unrealized gain (loss) on cash flow hedges | 4,687 | — | 4,687 | (53,823 | ) | — | (53,823 | ) | |||||||||||||||
Net loss reclassified on cash flow hedges into interest expense, net | 487 | — | 487 | 423 | — | 423 | |||||||||||||||||
Net loss reclassified on cash flow hedges into income (loss) from discontinued operations | — | — | — | 7,344 | — | 7,344 | |||||||||||||||||
Total other comprehensive (loss) income | (2,103 | ) | (287 | ) | (2,390 | ) | (38,145 | ) | 1,119 | (37,026 | ) | ||||||||||||
Cash distributions to partners | (98,051 | ) | — | (98,051 | ) | (89,076 | ) | — | (89,076 | ) | |||||||||||||
Other | 222 | — | 222 | (269 | ) | — | (269 | ) | |||||||||||||||
Ending balance | $ | 2,497,017 | $ | 12,163 | $ | 2,509,180 | $ | 2,751,062 | $ | 13,156 | $ | 2,764,218 |
Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
(Thousands of Dollars) | |||||||
Net income attributable to NuStar Energy L.P. | $ | 24,565 | $ | 26,351 | |||
Less general partner incentive distribution | 10,805 | 9,816 | |||||
Net income after general partner incentive distribution | 13,760 | 16,535 | |||||
General partner interest | 2 | % | 2 | % | |||
General partner allocation of net income after general partner incentive distribution | 276 | 331 | |||||
General partner incentive distribution | 10,805 | 9,816 | |||||
Net income applicable to general partner | $ | 11,081 | $ | 10,147 |
Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
(Thousands of Dollars, Except Per Unit Data) | |||||||
General partner interest | $ | 1,961 | $ | 1,782 | |||
General partner incentive distribution | 10,805 | 9,816 | |||||
Total general partner distribution | 12,766 | 11,598 | |||||
Limited partners’ distribution | 85,285 | 77,478 | |||||
Total cash distributions | $ | 98,051 | $ | 89,076 | |||
Cash distributions per unit applicable to limited partners | $ | 1.095 | $ | 1.095 |
Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
(Thousands of Dollars, Except Unit and Per Unit Data) | |||||||
Net income attributable to NuStar Energy L.P. | $ | 24,565 | $ | 26,351 | |||
Less general partner distribution (including IDR) | 12,766 | 11,598 | |||||
Less limited partner distribution | 85,285 | 77,478 | |||||
Distributions in excess of earnings | $ | (73,486 | ) | $ | (62,725 | ) | |
General partner earnings: | |||||||
Distributions | $ | 12,766 | $ | 11,598 | |||
Allocation of distributions in excess of earnings (2%) | (1,469 | ) | (1,255 | ) | |||
Total | $ | 11,297 | $ | 10,343 | |||
Limited partner earnings: | |||||||
Distributions | $ | 85,285 | $ | 77,478 | |||
Allocation of distributions in excess of earnings (98%) | (72,017 | ) | (61,470 | ) | |||
Total | $ | 13,268 | $ | 16,008 | |||
Weighted-average limited partner units outstanding | 77,886,078 | 70,756,078 | |||||
Net income per unit applicable to limited partners | $ | 0.17 | $ | 0.23 |
Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
(Thousands of Dollars) | |||||||
Decrease (increase) in current assets: | |||||||
Accounts receivable | $ | 50,811 | $ | 52,418 | |||
Receivable from related parties | 20,448 | — | |||||
Inventories | (54,416 | ) | (186,135 | ) | |||
Income tax receivable | 50 | (4,989 | ) | ||||
Other current assets | 18,678 | (9,677 | ) | ||||
Increase (decrease) in current liabilities: | |||||||
Accounts payable | 31,318 | 76,683 | |||||
Payable to related party | 10,369 | 8,566 | |||||
Accrued interest payable | 6,797 | (5,550 | ) | ||||
Accrued liabilities | (10,491 | ) | (8,513 | ) | |||
Taxes other than income tax | (2,136 | ) | (664 | ) | |||
Income tax payable | 2,158 | 1,403 | |||||
Changes in current assets and current liabilities | $ | 73,586 | $ | (76,458 | ) |
Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
(Thousands of Dollars) | |||||||
Cash paid for interest, net of amount capitalized | $ | 24,698 | $ | 31,961 | |||
Cash paid for income taxes, net of tax refunds received | $ | 1,750 | $ | 8,106 |
Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
(Thousands of Dollars) | |||||||
Revenues: | |||||||
Storage: | |||||||
Third parties | $ | 131,414 | $ | 127,687 | |||
Intersegment | 10,894 | 17,045 | |||||
Related party | 2,011 | 697 | |||||
Total storage | 144,319 | 145,429 | |||||
Pipeline | 93,277 | 77,761 | |||||
Fuels marketing | 773,008 | 1,403,260 | |||||
Consolidation and intersegment eliminations | (10,894 | ) | (17,045 | ) | |||
Total revenues | $ | 999,710 | $ | 1,609,405 | |||
Operating income: | |||||||
Storage | $ | 51,178 | $ | 56,147 | |||
Pipeline | 39,881 | 37,216 | |||||
Fuels marketing | (1,593 | ) | (5,393 | ) | |||
Consolidation and intersegment eliminations | (12 | ) | 30 | ||||
Total segment operating income | 89,454 | 88,000 | |||||
General and administrative expenses | 27,494 | 27,167 | |||||
Other depreciation and amortization expense | 2,498 | 1,814 | |||||
Total operating income | $ | 59,462 | $ | 59,019 |
March 31, 2013 | December 31, 2012 | ||||||
(Thousands of Dollars) | |||||||
Storage | $ | 2,606,020 | $ | 2,627,946 | |||
Pipeline | 1,690,820 | 1,720,711 | |||||
Fuels marketing | 822,603 | 885,661 | |||||
Total segment assets | 5,119,443 | 5,234,318 | |||||
Other partnership assets | 427,587 | 378,771 | |||||
Total consolidated assets | $ | 5,547,030 | $ | 5,613,089 |
NuStar Energy | NuStar Logistics | NuPOP | Non-Guarantor Subsidiaries (a) | Eliminations | Consolidated | ||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | 7,033 | $ | 26,799 | $ | — | $ | 82,681 | $ | — | $ | 116,513 | |||||||||||
Receivables, net | — | 151,979 | 5,994 | 286,773 | (18,621 | ) | 426,125 | ||||||||||||||||
Inventories | — | 2,324 | 4,380 | 220,965 | (43 | ) | 227,626 | ||||||||||||||||
Income tax receivable | — | — | — | 1,186 | — | 1,186 | |||||||||||||||||
Other current assets | — | 18,550 | 365 | 27,436 | — | 46,351 | |||||||||||||||||
Assets held for sale | — | 2,847 | — | — | — | 2,847 | |||||||||||||||||
Intercompany receivable | — | 171,904 | 628,671 | — | (800,575 | ) | — | ||||||||||||||||
Total current assets | 7,033 | 374,403 | 639,410 | 619,041 | (819,239 | ) | 820,648 | ||||||||||||||||
Property, plant and equipment, net | — | 1,446,695 | 576,891 | 1,215,969 | — | 3,239,555 | |||||||||||||||||
Intangible assets, net | — | 18,298 | — | 70,637 | — | 88,935 | |||||||||||||||||
Goodwill | — | 145,990 | 170,652 | 633,944 | — | 950,586 | |||||||||||||||||
Investment in wholly owned subsidiaries | 3,060,312 | 168,455 | 1,216,620 | 2,352,293 | (6,797,680 | ) | — | ||||||||||||||||
Investment in joint ventures | — | 24,764 | — | 62,808 | — | 87,572 | |||||||||||||||||
Deferred income tax asset | — | — | — | 3,832 | — | 3,832 | |||||||||||||||||
Note receivable from related party | — | 159,200 | — | — | — | 159,200 | |||||||||||||||||
Other long-term assets, net | 490 | 155,680 | 26,329 | 14,203 | — | 196,702 | |||||||||||||||||
Total assets | $ | 3,067,835 | $ | 2,493,485 | $ | 2,629,902 | $ | 4,972,727 | $ | (7,616,919 | ) | $ | 5,547,030 | ||||||||||
Liabilities and Partners’ Equity | |||||||||||||||||||||||
Current portion of long-term debt | $ | — | $ | — | $ | 250,390 | $ | 31,855 | $ | — | $ | 282,245 | |||||||||||
Payables | 6 | 123,670 | 14,380 | 321,166 | (18,621 | ) | 440,601 | ||||||||||||||||
Accrued interest payable | — | 25,625 | 4,896 | 17 | — | 30,538 | |||||||||||||||||
Accrued liabilities | 772 | 38,982 | 5,258 | 35,389 | — | 80,401 | |||||||||||||||||
Taxes other than income tax | 188 | 3,792 | 3,524 | 268 | — | 7,772 | |||||||||||||||||
Income tax payable | — | 477 | 4 | 4,332 | — | 4,813 | |||||||||||||||||
Intercompany payable | 508,884 | — | — | 291,691 | (800,575 | ) | — | ||||||||||||||||
Total current liabilities | 509,850 | 192,546 | 278,452 | 684,718 | (819,196 | ) | 846,370 | ||||||||||||||||
Long-term debt, less current portion | — | 2,136,072 | — | — | — | 2,136,072 | |||||||||||||||||
Long-term payable to related party | — | 13,364 | — | 5,442 | — | 18,806 | |||||||||||||||||
Deferred income tax liability | — | — | — | 30,288 | — | 30,288 | |||||||||||||||||
Other long-term liabilities | — | 887 | 322 | 5,105 | — | 6,314 | |||||||||||||||||
Total partners’ equity | 2,557,985 | 150,616 | 2,351,128 | 4,247,174 | (6,797,723 | ) | 2,509,180 | ||||||||||||||||
Total liabilities and partners’ equity | $ | 3,067,835 | $ | 2,493,485 | $ | 2,629,902 | $ | 4,972,727 | $ | (7,616,919 | ) | $ | 5,547,030 |
NuStar Energy | NuStar Logistics | NuPOP | Non-Guarantor Subsidiaries (a) | Eliminations | Consolidated | ||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | 7,033 | $ | 1,112 | $ | — | $ | 75,457 | $ | — | $ | 83,602 | |||||||||||
Receivables, net | — | 157,452 | 10,561 | 340,144 | (10,381 | ) | 497,776 | ||||||||||||||||
Inventories | — | 2,320 | 5,590 | 165,349 | (31 | ) | 173,228 | ||||||||||||||||
Income tax receivable | — | — | — | 1,265 | — | 1,265 | |||||||||||||||||
Other current assets | — | 26,353 | 1,468 | 37,417 | — | 65,238 | |||||||||||||||||
Assets held for sale | — | 35,337 | — | 82,997 | — | 118,334 | |||||||||||||||||
Intercompany receivable | — | 353,384 | 599,599 | — | (952,983 | ) | — | ||||||||||||||||
Total current assets | 7,033 | 575,958 | 617,218 | 702,629 | (963,395 | ) | 939,443 | ||||||||||||||||
Property, plant and equipment, net | — | 1,423,991 | 582,299 | 1,232,170 | — | 3,238,460 | |||||||||||||||||
Intangible assets, net | — | 18,733 | — | 73,702 | — | 92,435 | |||||||||||||||||
Goodwill | — | 145,990 | 170,652 | 634,382 | — | 951,024 | |||||||||||||||||
Investment in wholly owned subsidiaries | 3,133,097 | 161,957 | 1,208,595 | 2,329,595 | (6,833,244 | ) | — | ||||||||||||||||
Investment in joint ventures | — | 35,883 | — | 67,062 | — | 102,945 | |||||||||||||||||
Deferred income tax asset | — | — | — | 3,108 | — | 3,108 | |||||||||||||||||
Note receivable from related party | — | 95,711 | — | — | — | 95,711 | |||||||||||||||||
Other long-term assets, net | 490 | 148,384 | 26,330 | 14,759 | — | 189,963 | |||||||||||||||||
Total assets | $ | 3,140,620 | $ | 2,606,607 | $ | 2,605,094 | $ | 5,057,407 | $ | (7,796,639 | ) | $ | 5,613,089 | ||||||||||
Liabilities and Partners’ Equity | |||||||||||||||||||||||
Current portion of long-term debt | $ | — | $ | 1,313 | $ | 250,967 | $ | 34,142 | $ | — | $ | 286,422 | |||||||||||
Payables | 15 | 122,706 | 12,657 | 274,044 | (10,381 | ) | 399,041 | ||||||||||||||||
Accrued interest payable | — | 22,512 | 1,224 | 5 | — | 23,741 | |||||||||||||||||
Accrued liabilities | 862 | 76,322 | 7,542 | 39,477 | — | 124,203 | |||||||||||||||||
Taxes other than income tax | 129 | 5,671 | 2,830 | 1,263 | — | 9,893 | |||||||||||||||||
Income tax payable | — | 247 | — | 2,424 | — | 2,671 | |||||||||||||||||
Intercompany payable | 508,365 | — | — | 444,618 | (952,983 | ) | — | ||||||||||||||||
Total current liabilities | 509,371 | 228,771 | 275,220 | 795,973 | (963,364 | ) | 845,971 | ||||||||||||||||
Long-term debt, less current portion | — | 2,124,582 | — | — | — | 2,124,582 | |||||||||||||||||
Long-term payable to related party | — | 12,629 | — | 5,442 | — | 18,071 | |||||||||||||||||
Deferred income tax liability | — | — | — | 32,114 | — | 32,114 | |||||||||||||||||
Other long-term liabilities | — | 2,701 | 279 | 4,376 | — | 7,356 | |||||||||||||||||
Total partners’ equity | 2,631,249 | 237,924 | 2,329,595 | 4,219,502 | (6,833,275 | ) | 2,584,995 | ||||||||||||||||
Total liabilities and partners’ equity | $ | 3,140,620 | $ | 2,606,607 | $ | 2,605,094 | $ | 5,057,407 | $ | (7,796,639 | ) | $ | 5,613,089 |
(a) | Non-guarantor subsidiaries are wholly owned by NuStar Energy, NuStar Logistics or NuPOP. |
NuStar Energy | NuStar Logistics | NuPOP | Non-Guarantor Subsidiaries (a) | Eliminations | Consolidated | ||||||||||||||||||
Revenues | $ | — | $ | 98,863 | $ | 52,626 | $ | 856,246 | $ | (8,025 | ) | $ | 999,710 | ||||||||||
Costs and expenses | 491 | 66,113 | 36,009 | 845,648 | (8,013 | ) | 940,248 | ||||||||||||||||
Operating (loss) income | (491 | ) | 32,750 | 16,617 | 10,598 | (12 | ) | 59,462 | |||||||||||||||
Equity in earnings (loss) of subsidiaries | 25,056 | 6,498 | 8,025 | 21,566 | (61,145 | ) | — | ||||||||||||||||
Equity in (loss) earnings of joint ventures | — | (11,541 | ) | — | 398 | — | (11,143 | ) | |||||||||||||||
Interest expense, net | — | (26,790 | ) | (3,023 | ) | (300 | ) | — | (30,113 | ) | |||||||||||||
Other income (expense), net | — | 2,808 | (84 | ) | (2,356 | ) | — | 368 | |||||||||||||||
Income from continuing operations before income tax expense | 24,565 | 3,725 | 21,535 | 29,906 | (61,157 | ) | 18,574 | ||||||||||||||||
Income tax expense | — | 186 | 2 | 2,348 | — | 2,536 | |||||||||||||||||
Income from continuing operations | 24,565 | 3,539 | 21,533 | 27,558 | (61,157 | ) | 16,038 | ||||||||||||||||
Loss from discontinued operations, net of tax | — | 25 | — | 8,341 | — | 8,366 | |||||||||||||||||
Net income | 24,565 | 3,564 | 21,533 | 35,899 | (61,157 | ) | 24,404 | ||||||||||||||||
Less net loss attributable to noncontrolling interest | — | — | — | (161 | ) | — | (161 | ) | |||||||||||||||
Net income attributable to NuStar Energy L.P. | $ | 24,565 | $ | 3,564 | $ | 21,533 | $ | 36,060 | $ | (61,157 | ) | $ | 24,565 | ||||||||||
Comprehensive income | $ | 24,565 | $ | 10,532 | $ | 21,533 | $ | 26,541 | $ | (61,157 | ) | $ | 22,014 | ||||||||||
Less comprehensive loss attributable to noncontrolling interest | — | — | — | (448 | ) | — | (448 | ) | |||||||||||||||
Comprehensive income attributable to NuStar Energy L.P. | $ | 24,565 | $ | 10,532 | $ | 21,533 | $ | 26,989 | $ | (61,157 | ) | $ | 22,462 |
(a) | Non-guarantor subsidiaries are wholly owned by NuStar Energy, NuStar Logistics or NuPOP. |
NuStar Energy | NuStar Logistics | NuPOP | Non-Guarantor Subsidiaries (a) | Eliminations | Consolidated | ||||||||||||||||||
Revenues | $ | — | $ | 80,221 | $ | 49,092 | $ | 1,486,187 | $ | (6,095 | ) | $ | 1,609,405 | ||||||||||
Costs and expenses | 435 | 46,098 | 34,957 | 1,475,019 | (6,123 | ) | 1,550,386 | ||||||||||||||||
Operating (loss) income | (435 | ) | 34,123 | 14,135 | 11,168 | 28 | 59,019 | ||||||||||||||||
Equity in earnings of subsidiaries | 26,786 | (25,171 | ) | 25,905 | 36,057 | (63,577 | ) | — | |||||||||||||||
Equity in earnings of joint venture | — | — | — | 2,386 | — | 2,386 | |||||||||||||||||
Interest expense, net | — | (17,105 | ) | (4,171 | ) | (101 | ) | — | (21,377 | ) | |||||||||||||
Other income, net | — | 189 | 182 | 996 | — | 1,367 | |||||||||||||||||
Income (loss) from continuing operations before income tax expense | 26,351 | (7,964 | ) | 36,051 | 50,506 | (63,549 | ) | 41,395 | |||||||||||||||
Income tax expense | — | 90 | 2 | 3,351 | — | 3,443 | |||||||||||||||||
Income (loss) from continuing operations | 26,351 | (8,054 | ) | 36,049 | 47,155 | (63,549 | ) | 37,952 | |||||||||||||||
Loss from discontinued operations, net of tax | — | (1,249 | ) | — | (10,418 | ) | (31 | ) | (11,698 | ) | |||||||||||||
Net income (loss) | 26,351 | (9,303 | ) | 36,049 | 36,737 | (63,580 | ) | 26,254 | |||||||||||||||
Less net income attributable to noncontrolling interest | — | — | — | (97 | ) | — | (97 | ) | |||||||||||||||
Net income (loss) attributable to NuStar Energy L.P. | $ | 26,351 | $ | (9,303 | ) | $ | 36,049 | $ | 36,834 | $ | (63,580 | ) | $ | 26,351 | |||||||||
Comprehensive income (loss) | $ | 26,351 | $ | (5,582 | ) | $ | 36,049 | $ | (4,010 | ) | $ | (63,580 | ) | $ | (10,772 | ) | |||||||
Less comprehensive income attributable to noncontrolling interest | — | — | — | 1,022 | — | 1,022 | |||||||||||||||||
Comprehensive income (loss) attributable to NuStar Energy L.P. | $ | 26,351 | $ | (5,582 | ) | $ | 36,049 | $ | (5,032 | ) | $ | (63,580 | ) | $ | (11,794 | ) |
(a) | Non-guarantor subsidiaries are wholly owned by NuStar Energy, NuStar Logistics or NuPOP. |
NuStar Energy | NuStar Logistics | NuPOP | Non-Guarantor Subsidiaries (a) | Eliminations | Consolidated | ||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 97,520 | $ | 25,327 | $ | 30,733 | $ | 88,881 | $ | (98,061 | ) | $ | 144,400 | ||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Capital expenditures | — | (39,277 | ) | (1,478 | ) | (11,809 | ) | — | (52,564 | ) | |||||||||||||
Proceeds from San Antonio Refinery Sale | — | 112,715 | — | — | — | 112,715 | |||||||||||||||||
Increase in note receivable from related party | — | (63,489 | ) | — | — | — | (63,489 | ) | |||||||||||||||
Investment in subsidiaries | (211 | ) | — | — | — | 211 | — | ||||||||||||||||
Other, net | 211 | (66 | ) | 6 | 69 | — | 220 | ||||||||||||||||
Net cash (used in) provided by investing activities | — | 9,883 | (1,472 | ) | (11,740 | ) | 211 | (3,118 | ) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Debt borrowings | — | 334,226 | — | — | — | 334,226 | |||||||||||||||||
Debt repayments | — | (718,782 | ) | — | — | — | (718,782 | ) | |||||||||||||||
Note offering, net | — | 391,217 | — | — | — | 391,217 | |||||||||||||||||
Distributions to unitholders and general partner | (98,051 | ) | (98,051 | ) | — | (10 | ) | 98,061 | (98,051 | ) | |||||||||||||
Payments for termination of interest rate swaps | — | (16,255 | ) | — | — | — | (16,255 | ) | |||||||||||||||
Contributions from (distributions to) affiliates | — | 211 | — | — | (211 | ) | — | ||||||||||||||||
Net intercompany borrowings (repayments) | 520 | 98,175 | (29,261 | ) | (69,434 | ) | — | — | |||||||||||||||
Other, net | 11 | (264 | ) | — | 329 | — | 76 | ||||||||||||||||
Net cash provided by (used in) financing activities | (97,520 | ) | (9,523 | ) | (29,261 | ) | (69,115 | ) | 97,850 | (107,569 | ) | ||||||||||||
Effect of foreign exchange rate changes on cash | — | — | — | (802 | ) | — | (802 | ) | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | — | 25,687 | — | 7,224 | — | 32,911 | |||||||||||||||||
Cash and cash equivalents as of the beginning of the period | 7,033 | 1,112 | — | 75,457 | — | 83,602 | |||||||||||||||||
Cash and cash equivalents as of the end of the period | $ | 7,033 | $ | 26,799 | $ | — | $ | 82,681 | $ | — | $ | 116,513 |
(a) | Non-guarantor subsidiaries are wholly owned by NuStar Energy, NuStar Logistics or NuPOP. |
NuStar Energy | NuStar Logistics | NuPOP | Non-Guarantor Subsidiaries (a) | Eliminations | Consolidated | ||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 88,503 | $ | 5,831 | $ | 13,470 | $ | (28,340 | ) | $ | (89,077 | ) | $ | (9,613 | ) | ||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Capital expenditures | — | (75,008 | ) | (2,285 | ) | (22,991 | ) | — | (100,284 | ) | |||||||||||||
Investment in other long-term assets | — | — | — | (94 | ) | — | (94 | ) | |||||||||||||||
Other, net | — | 135 | 7 | 22 | — | 164 | |||||||||||||||||
Net cash used in investing activities | — | (74,873 | ) | (2,278 | ) | (23,063 | ) | — | (100,214 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Debt borrowings | — | 510,548 | — | — | — | 510,548 | |||||||||||||||||
Debt repayments | — | (260,374 | ) | (250,000 | ) | — | — | (510,374 | ) | ||||||||||||||
Note offering, net | — | 247,408 | — | — | — | 247,408 | |||||||||||||||||
Distributions to unitholders and general partner | (89,076 | ) | (89,076 | ) | — | (9 | ) | 89,085 | (89,076 | ) | |||||||||||||
Payments for termination of interest rate swaps | — | (25,358 | ) | — | — | — | (25,358 | ) | |||||||||||||||
Net intercompany borrowings (repayments) | 838 | (312,383 | ) | 238,808 | 72,745 | (8 | ) | — | |||||||||||||||
Other, net | (269 | ) | (3,598 | ) | — | 639 | — | (3,228 | ) | ||||||||||||||
Net cash (used in) provided by financing activities | (88,507 | ) | 67,167 | (11,192 | ) | 73,375 | 89,077 | 129,920 | |||||||||||||||
Effect of foreign exchange rate changes on cash | — | 1,881 | — | (1,775 | ) | — | 106 | ||||||||||||||||
Net (decrease) increase in cash and cash equivalents | (4 | ) | 6 | — | 20,197 | — | 20,199 | ||||||||||||||||
Cash and cash equivalents as of the beginning of the period | 139 | 14 | — | 17,344 | — | 17,497 | |||||||||||||||||
Cash and cash equivalents as of the end of the period | $ | 135 | $ | 20 | $ | — | $ | 37,541 | $ | — | $ | 37,696 |
(a) | Non-guarantor subsidiaries are wholly owned by NuStar Energy, NuStar Logistics or NuPOP. |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
• | Overview |
• | Results of Operations |
• | Trends and Outlook |
• | Liquidity and Capital Resources |
• | Related Party Transactions |
• | Critical Accounting Policies |
• | company-specific factors, such as facility integrity issues and maintenance requirements that impact the throughput rates of our assets; |
• | seasonal factors that affect the demand for products transported by and/or stored in our assets and the demand for products we sell; |
• | industry factors, such as changes in the prices of petroleum products, that affect demand and operations of our competitors; |
• | factors such as commodity price volatility that impact our fuels marketing segment; and |
• | other factors, such as refinery utilization rates and maintenance turnaround schedules, that impact the operations of refineries served by our storage and pipeline assets. |
Three Months Ended March 31, | Change | ||||||||||
2013 | 2012 | ||||||||||
Statement of Income Data: | |||||||||||
Revenues: | |||||||||||
Services revenues | $ | 227,283 | $ | 209,719 | $ | 17,564 | |||||
Product sales | 772,427 | 1,399,686 | (627,259 | ) | |||||||
Total revenues | 999,710 | 1,609,405 | (609,695 | ) | |||||||
Costs and expenses: | |||||||||||
Cost of product sales | 752,254 | 1,354,530 | (602,276 | ) | |||||||
Operating expenses | 117,574 | 125,114 | (7,540 | ) | |||||||
General and administrative expenses | 27,494 | 27,167 | 327 | ||||||||
Depreciation and amortization expense | 42,926 | 43,575 | (649 | ) | |||||||
Total costs and expenses | 940,248 | 1,550,386 | (610,138 | ) | |||||||
Operating income | 59,462 | 59,019 | 443 | ||||||||
Equity in (loss) earnings of joint ventures | (11,143 | ) | 2,386 | (13,529 | ) | ||||||
Interest expense, net | (31,235 | ) | (21,377 | ) | (9,858 | ) | |||||
Interest income from related party | 1,122 | — | 1,122 | ||||||||
Other income, net | 368 | 1,367 | (999 | ) | |||||||
Income from continuing operations before income tax expense | 18,574 | 41,395 | (22,821 | ) | |||||||
Income tax expense | 2,536 | 3,443 | (907 | ) | |||||||
Income from continuing operations | 16,038 | 37,952 | (21,914 | ) | |||||||
Income (loss) from discontinued operations, net of tax | 8,366 | (11,698 | ) | 20,064 | |||||||
Net income | $ | 24,404 | $ | 26,254 | $ | (1,850 | ) | ||||
Net (loss) income per unit applicable to limited partners: | |||||||||||
Continuing operations | $ | 0.06 | $ | 0.39 | $ | (0.33 | ) | ||||
Discontinued operations | 0.11 | (0.16 | ) | 0.27 | |||||||
Total | $ | 0.17 | $ | 0.23 | $ | (0.06 | ) | ||||
Weighted-average limited partner units outstanding | 77,886,078 | 70,756,078 | 7,130,000 |
Three Months Ended March 31, | Change | ||||||||||
2013 | 2012 | ||||||||||
Storage: | |||||||||||
Throughput (barrels/day) | 669,604 | 739,076 | (69,472 | ) | |||||||
Throughput revenues | $ | 22,361 | $ | 22,264 | $ | 97 | |||||
Storage lease revenues | 121,958 | 123,165 | (1,207 | ) | |||||||
Total revenues | 144,319 | 145,429 | (1,110 | ) | |||||||
Operating expenses | 68,710 | 65,982 | 2,728 | ||||||||
Depreciation and amortization expense | 24,431 | 23,300 | 1,131 | ||||||||
Segment operating income | $ | 51,178 | $ | 56,147 | $ | (4,969 | ) | ||||
Pipeline: | |||||||||||
Refined products pipelines throughput (barrels/day) | 471,294 | 491,570 | (20,276 | ) | |||||||
Crude oil pipelines throughput (barrels/day) | 351,193 | 330,081 | 21,112 | ||||||||
Total throughput (barrels/day) | 822,487 | 821,651 | 836 | ||||||||
Throughput revenues | $ | 93,277 | $ | 77,761 | $ | 15,516 | |||||
Operating expenses | 37,406 | 27,564 | 9,842 | ||||||||
Depreciation and amortization expense | 15,990 | 12,981 | 3,009 | ||||||||
Segment operating income | $ | 39,881 | $ | 37,216 | $ | 2,665 | |||||
Fuels Marketing: | |||||||||||
Product sales | $ | 773,008 | $ | 1,403,260 | $ | (630,252 | ) | ||||
Cost of product sales | 758,732 | 1,360,518 | (601,786 | ) | |||||||
Gross margin | 14,276 | 42,742 | (28,466 | ) | |||||||
Operating expenses | 15,862 | 42,655 | (26,793 | ) | |||||||
Depreciation and amortization expense | 7 | 5,480 | (5,473 | ) | |||||||
Segment operating loss | $ | (1,593 | ) | $ | (5,393 | ) | $ | 3,800 | |||
Consolidation and Intersegment Eliminations: | |||||||||||
Revenues | $ | (10,894 | ) | $ | (17,045 | ) | $ | 6,151 | |||
Cost of product sales | (6,478 | ) | (5,988 | ) | (490 | ) | |||||
Operating expenses | (4,404 | ) | (11,087 | ) | 6,683 | ||||||
Total | $ | (12 | ) | $ | 30 | $ | (42 | ) | |||
Consolidated Information: | |||||||||||
Revenues | $ | 999,710 | $ | 1,609,405 | $ | (609,695 | ) | ||||
Cost of product sales | 752,254 | 1,354,530 | (602,276 | ) | |||||||
Operating expenses | 117,574 | 125,114 | (7,540 | ) | |||||||
Depreciation and amortization expense | 40,428 | 41,761 | (1,333 | ) | |||||||
Segment operating income | 89,454 | 88,000 | 1,454 | ||||||||
General and administrative expenses | 27,494 | 27,167 | 327 | ||||||||
Other depreciation and amortization expense | 2,498 | 1,814 | 684 | ||||||||
Consolidated operating income | $ | 59,462 | $ | 59,019 | $ | 443 |
• | a decrease of $5.3 million at various domestic terminals, mainly as a result of reduced demand in several markets; |
• | a decrease of $4.9 million at our Point Tupper and St. Eustatius terminal facilities, mainly due to decreased reimbursable revenue and throughputs, as well as decreased dockage at our Point Tupper terminal facility; |
• | a decrease of $2.4 million due to the sale of five refined product terminals in April 2012; |
• | a decrease of $2.1 million at our Corpus Christi crude storage tank facility due to the change to throughput-based fees in July 2012; and |
• | a decrease of $1.5 million at our UK, Amsterdam and Turkey terminals, mainly due to a decrease in customer product movements and reimbursable revenues. |
• | an increase of $2.0 million resulting from lower capitalized overhead consistent with the decline in capital expenditures; |
• | an increase of $1.7 million in maintenance and regulatory expenses associated with tank inspections and repairs, mainly at refined product terminals in our central west and northeast regions; and |
• | an increase of $1.3 million in salaries and wages, mainly due to a collective labor agreement that became effective in mid-2012 associated with our St. Eustatius terminal. |
• | an increase in revenues of $11.9 million and an increase in throughputs of 55,549 barrels per day on crude oil pipelines that serve Eagle Ford Shale production in South Texas, mainly resulting from the TexStar Asset Acquisition; |
• | an increase in revenues of $2.3 million and an increase in throughputs of 4,485 barrels per day on the North Pipeline, mainly due to the completion of an expansion project at the Mandan refinery in June 2012 and higher average tariffs resulting from an increase in the annual index adjustment in July 2012; |
• | an increase in revenues of $1.7 million, while throughputs remained flat, on the East Pipeline due to higher average tariffs resulting from increased long-haul deliveries and an increase in the annual index adjustment in July 2012; and |
• | an increase in revenues of $1.0 million, despite a decrease in throughputs of 8,010 barrels per day, on the crude oil and refined product pipelines serving the McKee refinery due to increased volumes on certain pipelines with higher tariffs and an increase in the annual index adjustment in July 2012; however, the throughputs decreased due to operating issues at the McKee refinery in the latter part of the first quarter, prior to a turnaround in April 2013. |
Three Months Ended March 31, | Change | ||||||||||
2013 | 2012 | ||||||||||
(Thousands of Dollars) | |||||||||||
Product sales | $ | 773,008 | $ | 1,198,629 | $ | (425,621 | ) | ||||
Cost of product sales | 758,732 | 1,168,034 | (409,302 | ) | |||||||
Gross margin | 14,276 | 30,595 | (16,319 | ) | |||||||
Operating expenses | 15,862 | 14,785 | 1,077 | ||||||||
Depreciation and amortization expense | 7 | 43 | (36 | ) | |||||||
Segment operating loss | $ | (1,593 | ) | $ | 15,767 | $ | (17,360 | ) |
Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
(Thousands of Dollars) | |||||||
Net cash provided by (used in): | |||||||
Operating activities | $ | 144,400 | $ | (9,613 | ) | ||
Investing activities | (3,118 | ) | (100,214 | ) | |||
Financing activities | (107,569 | ) | 129,920 | ||||
Effect of foreign exchange rate changes on cash | (802 | ) | 106 | ||||
Net increase in cash and cash equivalents | $ | 32,911 | $ | 20,199 |
• | reliability capital expenditures, such as those required to maintain equipment reliability and safety; and |
• | strategic capital expenditures, such as those to expand and upgrade pipeline capacity or terminal facilities and to construct new pipelines, terminals and storage tanks. In addition, strategic capital expenditures may include acquisitions of pipelines, terminals or storage tank assets, as well as certain capital expenditures related to support functions. |
Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
(Thousands of Dollars, Except Per Unit Data) | |||||||
General partner interest | $ | 1,961 | $ | 1,782 | |||
General partner incentive distribution | 10,805 | 9,816 | |||||
Total general partner distribution | 12,766 | 11,598 | |||||
Limited partners’ distribution | 85,285 | 77,478 | |||||
Total cash distributions | $ | 98,051 | $ | 89,076 | |||
Cash distributions per unit applicable to limited partners | $ | 1.095 | $ | 1.095 |
• | the 2012 Revolving Credit Agreement due May 2, 2017, with a balance of $280.3 million as of March 31, 2013; |
• | NuStar Logistics’ 7.65% senior notes due April 15, 2018 with a face value of $350.0 million; 4.80% senior notes due September 1, 2020 with a face value of $450.0 million; 4.75% senior notes due February 1, 2022 with a face value of $250.0 million; and 7.625% fixed-to-floating rate subordinated notes due January 15, 2043 with a face value of $402.5 million; |
• | NuPOP’s 5.875% senior notes due June 1, 2013 with a face value of $250.0 million; |
• | NuStar Logistics’ $365.4 million Gulf Opportunity Zone Revenue Bonds due from 2038 to 2041; and |
• | NuStar Terminals Limited’s £21 million term loan due December 10, 2013 (the UK Term Loan). |
Notional Amount | Fair Value Asset (Liability) | ||||||||||||||
March 31, 2013 | December 31, 2012 | March 31, 2013 | December 31, 2012 | ||||||||||||
(Thousands of Dollars) | |||||||||||||||
Forward-starting | $ | 150,000 | $ | 275,000 | $ | (19,968 | ) | $ | (40,911 | ) |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
March 31, 2013 | |||||||||||||||||||||||||||||||
Expected Maturity Dates | |||||||||||||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | There- after | Total | Fair Value | ||||||||||||||||||||||||
(Thousands of Dollars, Except Interest Rates) | |||||||||||||||||||||||||||||||
Long-term Debt: | |||||||||||||||||||||||||||||||
Fixed rate | $ | 281,855 | $ | — | $ | — | $ | — | $ | — | $ | 1,452,500 | $ | 1,734,355 | $ | 1,802,044 | |||||||||||||||
Weighted-average interest rate | 5.5 | % | — | — | — | — | 6.4 | % | 6.2 | % | |||||||||||||||||||||
Variable rate | $ | — | $ | — | $ | — | $ | — | $ | 280,263 | $ | 365,440 | $ | 645,703 | $ | 646,064 | |||||||||||||||
Weighted-average interest rate | — | — | — | — | 2.2 | % | 0.1 | % | 1.0 | % |
December 31, 2012 | |||||||||||||||||||||||||||||||
Expected Maturity Dates | |||||||||||||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | There- after | Total | Fair Value | ||||||||||||||||||||||||
(Thousands of Dollars, Except Interest Rates) | |||||||||||||||||||||||||||||||
Long-term Debt: | |||||||||||||||||||||||||||||||
Fixed rate | $ | 514,651 | $ | — | $ | — | $ | — | $ | — | $ | 1,050,000 | $ | 1,564,651 | $ | 1,601,985 | |||||||||||||||
Weighted-average interest rate | 5.7 | % | — | — | — | — | 5.8 | % | 5.8 | % | |||||||||||||||||||||
Variable rate | $ | — | $ | — | $ | — | $ | — | $ | 440,330 | $ | 365,440 | $ | 805,770 | $ | 775,135 | |||||||||||||||
Weighted-average interest rate | — | — | — | — | 1.9 | % | 0.1 | % | 1.1 | % |
Notional Amount | Period of Hedge | Weighted-Average Fixed Rate | Fair Value | ||||||||||||||||
March 31, 2013 | December 31, 2012 | March 31, 2013 | March 31, 2013 | December 31, 2012 | |||||||||||||||
(Thousands of Dollars) | (Thousands of Dollars) | ||||||||||||||||||
$ | — | $ | 125,000 | 06/13 - 06/23 | 3.5 | % | $ | — | $ | (18,921 | ) | ||||||||
150,000 | 150,000 | 06/13 - 06/23 | 3.5 | % | (19,968 | ) | (21,990 | ) | |||||||||||
$ | 150,000 | $ | 275,000 | 3.5 | % | $ | (19,968 | ) | $ | (40,911 | ) |
March 31, 2013 | ||||||||||||||
Contract Volumes | Weighted Average | Fair Value of Current Asset (Liability) | ||||||||||||
Pay Price | Receive Price | |||||||||||||
(Thousands of Barrels) | (Thousands of Dollars) | |||||||||||||
Fair Value Hedges: | ||||||||||||||
Futures – short: | ||||||||||||||
(refined products) | 45 | N/A | $ | 127.19 | $ | (35 | ) | |||||||
Swaps – long: | ||||||||||||||
(refined products) | 90 | $ | 95.56 | N/A | $ | 26 | ||||||||
Swaps – short: | ||||||||||||||
(refined products) | 1,955 | N/A | $ | 95.00 | $ | (1,645 | ) | |||||||
Economic Hedges and Other Derivatives: | ||||||||||||||
Futures – long: | ||||||||||||||
(crude oil and refined products) | 15 | $ | 120.11 | N/A | $ | 26 | ||||||||
Futures – short: | ||||||||||||||
(crude oil and refined products) | 648 | N/A | $ | 101.45 | $ | (1,330 | ) | |||||||
Swaps – long: | ||||||||||||||
(refined products) | 2,261 | $ | 91.26 | N/A | $ | 1,377 | ||||||||
Swaps – short: | ||||||||||||||
(refined products) | 2,576 | N/A | $ | 99.16 | $ | 4,663 | ||||||||
Forward purchase contracts: | ||||||||||||||
(crude oil) | 2,890 | $ | 104.28 | N/A | $ | 7,133 | ||||||||
Forward sales contracts: | ||||||||||||||
(crude oil) | 2,890 | N/A | $ | 103.25 | $ | (5,733 | ) | |||||||
Total fair value of open positions exposed to commodity price risk | $ | 4,482 |
December 31, 2012 | ||||||||||||||
Contract Volumes | Weighted Average | Fair Value of Current Asset (Liability) | ||||||||||||
Pay Price | Receive Price | |||||||||||||
(Thousands of Barrels) | (Thousands of Dollars) | |||||||||||||
Fair Value Hedges: | ||||||||||||||
Futures – long: | ||||||||||||||
(refined products) | 10 | $ | 127.47 | N/A | $ | (1 | ) | |||||||
Futures – short: | ||||||||||||||
(refined products) | 55 | N/A | $ | 127.99 | $ | 36 | ||||||||
Swaps – long: | ||||||||||||||
(refined products) | 11 | $ | 97.76 | N/A | $ | 2 | ||||||||
Swaps – short: | ||||||||||||||
(refined products) | 36 | N/A | $ | 96.58 | $ | (51 | ) | |||||||
Economic Hedges and Other Derivatives: | ||||||||||||||
Futures – long: | ||||||||||||||
(crude oil and refined products) | 88 | $ | 97.60 | N/A | $ | 202 | ||||||||
Futures – short: | ||||||||||||||
(crude oil and refined products) | 94 | N/A | $ | 100.13 | $ | (142 | ) | |||||||
Swaps – long: | ||||||||||||||
(crude oil and refined products) | 5,196 | $ | 93.75 | N/A | $ | (2,329 | ) | |||||||
Swaps – short: | ||||||||||||||
(crude oil and refined products) | 6,952 | N/A | $ | 94.43 | $ | (2,033 | ) | |||||||
Forward purchase contracts: | ||||||||||||||
(crude oil) | 2,998 | $ | 100.03 | N/A | $ | 12,574 | ||||||||
Forward sales contracts: | ||||||||||||||
(crude oil) | 2,998 | N/A | $ | 99.68 | $ | (9,365 | ) | |||||||
Total fair value of open positions exposed to commodity price risk | $ | (1,107 | ) |
Item 4. | Controls and Procedures |
(a) | Evaluation of disclosure controls and procedures. |
(b) | Changes in internal control over financial reporting. |
Item 6. | Exhibits |
Exhibit Number | Description | |
*12.01 | Statement of Computation of Ratio of Earnings to Fixed Charges | |
*31.01 | Rule 13a-14(a) Certification (under Section 302 of the Sarbanes-Oxley Act of 2002) of principal executive officer | |
*31.02 | Rule 13a-14(a) Certification (under Section 302 of the Sarbanes-Oxley Act of 2002) of principal financial officer | |
*32.01 | Section 1350 Certification (under Section 906 of the Sarbanes-Oxley Act of 2002) of principal executive officer | |
*32.02 | Section 1350 Certification (under Section 906 of the Sarbanes-Oxley Act of 2002) of principal financial officer | |
*101.INS | XBRL Instance Document | |
*101.SCH | XBRL Taxonomy Extension Schema Document | |
*101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
*101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
*101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
*101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |
* | Filed herewith. | |
By: | /s/ Curtis V. Anastasio | |
Curtis V. Anastasio | ||
President and Chief Executive Officer | ||
May 8, 2013 | ||
By: | /s/ Steven A. Blank | |
Steven A. Blank | ||
Executive Vice President and Chief Financial Officer | ||
May 8, 2013 | ||
By: | /s/ Thomas R. Shoaf | |
Thomas R. Shoaf | ||
Senior Vice President and Controller | ||
May 8, 2013 |
Three Months | |||||||||||||||||||||||
Ended | |||||||||||||||||||||||
March 31, | Years Ended December 31, | ||||||||||||||||||||||
2013 | 2012 | 2011 (d) | 2010 | 2009 | 2008 | ||||||||||||||||||
Earnings: | |||||||||||||||||||||||
Income (loss) from continuing operations before income tax expense, minority interest in net income of consolidated subsidiaries, and income from equity investees | $ | 29,717 | $ | (146,260 | ) | $ | 216,742 | $ | 240,211 | $ | 225,791 | $ | 256,994 | ||||||||||
Add: | |||||||||||||||||||||||
Fixed charges | 36,333 | 128,067 | 113,220 | 103,390 | 102,781 | 113,959 | |||||||||||||||||
Amortization of capitalized interest | 288 | 1,012 | 793 | 642 | 553 | 440 | |||||||||||||||||
Distributions from joint ventures | 4,652 | 6,364 | 14,374 | 9,625 | 9,700 | 2,835 | |||||||||||||||||
Less: Interest capitalized | (691 | ) | (7,737 | ) | (5,388 | ) | (3,701 | ) | (1,650 | ) | (5,108 | ) | |||||||||||
Total earnings | $ | 70,299 | $ | (18,554 | ) | $ | 339,741 | $ | 350,167 | $ | 337,175 | $ | 369,120 | ||||||||||
Fixed charges: | |||||||||||||||||||||||
Interest expense (a) | $ | 29,649 | $ | 93,371 | $ | 82,758 | $ | 77,343 | $ | 78,622 | $ | 92,971 | |||||||||||
Amortization of debt issuance costs | 665 | 2,313 | 1,738 | 1,118 | 910 | 815 | |||||||||||||||||
Interest capitalized | 691 | 7,737 | 5,388 | 3,701 | 1,650 | 5,108 | |||||||||||||||||
Rental expense interest factor (b) | 5,328 | 24,646 | 23,336 | 21,228 | 21,599 | 15,065 | |||||||||||||||||
Total fixed charges | $ | 36,333 | $ | 128,067 | $ | 113,220 | $ | 103,390 | $ | 102,781 | $ | 113,959 | |||||||||||
Ratio of earnings to fixed charges | 1.9x | (c) | 3.0x | 3.4x | 3.3x | 3.2x |
(a) | The “Interest expense, net” reported in NuStar Energy L.P.'s consolidated statement of comprehensive income for includes investment income for the quarter ended March 31, 2013 of $0.2 million and for years ended December 31, 2012, 2011 and 2010 of $0.9 million, $0.8 million and $0.2 million, respectively. |
(b) | The interest portion of rental expense represents one-third of rents, which is deemed representative of the interest portion of rental expense. |
(c) | For the year ended December 31, 2012, earnings were insufficient to cover fixed charges by $146.6 million. The deficiency included the effect of $271.8 million of impairment losses mainly resulting from the write-down of the carrying value of our long-lived assets related to our asphalt operations, including fixed assets, goodwill, intangible assets and other long-term assets. |
(d) | Revised for discontinued operations in pre-tax income of subsidiaries that have not incurred fixed charges. |
/s/ Curtis V. Anastasio |
Curtis V. Anastasio |
President and Chief Executive Officer |
/s/ Steven A. Blank |
Steven A. Blank |
Executive Vice President and Chief Financial Officer |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership. |
/s/ Curtis V. Anastasio |
Curtis V. Anastasio |
President and Chief Executive Officer |
May 8, 2013 |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership. |
/s/ Steven A. Blank |
Steven A. Blank |
Executive Vice President and Chief Financial Officer |
May 8, 2013 |
NET INCOME PER UNIT Table (Details) (USD $)
In Thousands, except Share data, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
Schedule Of Net Income Per Unit [Line Items] | ||
Net income (loss) attributable to NuStar Energy L.P. | $ 24,565 | $ 26,351 |
Less general partner distribution (including IDR) | 12,766 | 11,598 |
Less limited partner distribution | 85,285 | 77,478 |
Distributions less than (in excess of) earnings | (73,486) | (62,725) |
General partner earnings: | ||
Distributions | 12,766 | 11,598 |
Allocation of distributions less than (in excess of) earnings (2%) | (1,469) | (1,255) |
Total | 11,297 | 10,343 |
Limited partner earnings: | ||
Limited partners' distribution | 85,285 | 77,478 |
Allocation of distributions less than (in excess of) earnings (98%) | (72,017) | (61,470) |
Total | $ 13,268 | $ 16,008 |
Weighted-average limited partner units outstanding | 77,886,078 | 70,756,078 |
Net income (loss) per unit applicable to limited partners | $ 0.17 | $ 0.23 |
PARTNERS' EQUITY Table 3 (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
Distributions Made to Limited Partners and General Partner [Line Items] | ||
General partner interest | $ 1,961 | $ 1,782 |
General partner incentive distribution | 10,805 | 9,816 |
Total general partner distribution | 12,766 | 11,598 |
Limited partners' distribution | 85,285 | 77,478 |
Total cash distributions | $ 98,051 | $ 89,076 |
Cash distributions per unit applicable to limited partners | $ 1.095 | $ 1.095 |
INVENTORIES Table (Details) (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
---|---|---|
Schedule of Inventory [Line Items] | ||
Crude oil | $ 973 | $ 447 |
Finished products | 218,631 | 164,894 |
Materials and supplies | 8,022 | 7,887 |
Total | $ 227,626 | $ 173,228 |
NET INCOME PER UNIT (Tables)
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NET INCOME PER UNIT [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Income Per Unit [Text Block] | The following table details the calculation of earnings per unit:
|
STATEMENTS OF CASH FLOWS Table 1 (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
Decrease (increase) in current assets: | ||
Accounts receivable | $ 50,811 | $ 52,418 |
Receivable from related parties | 20,448 | 0 |
Inventories | (54,416) | (186,135) |
Income tax receivable | 50 | (4,989) |
Other current assets | 18,678 | (9,677) |
Increase (decrease) in current liabilities: | ||
Accounts payable | 31,318 | 76,683 |
Payable to related party | 10,369 | 8,566 |
Accrued interest payable | 6,797 | (5,550) |
Accrued liabilities | (10,491) | (8,513) |
Taxes other than income tax | (2,136) | (664) |
Income tax payable | 2,158 | 1,403 |
Changes in current assets and current liabilities | $ (73,586) | $ 76,458 |
RELATED PARTY TRANSACTIONS Table (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
Related Party Transaction [Line Items] | ||
Revenues | $ 2,011 | $ 697 |
Operating expenses | 32,991 | 36,777 |
General and administrative expenses | 18,784 | 19,149 |
Interest income | 1,122 | 0 |
Expenses included in discontinued operations, net of tax | $ 382 | $ 2,175 |
FAIR VALUE MEASUREMENTS Table 2 (Details) (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
---|---|---|
Fair Value and Carrying Value of Debt and Note Receivable from Related Party [Line Items] | ||
Fair value, debt | $ 2,448,108 | $ 2,377,120 |
Fair value, note receivable from related party | 115,379 | 91,705 |
Carrying amount, debt | 2,418,317 | 2,411,004 |
Carrying amount, note receivable from related party | $ 159,200 | $ 95,711 |
SEGMENT INFORMATION Table 1 (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
Revenues: | ||
Related party | $ 2,011 | $ 697 |
Total revenues | 999,710 | 1,609,405 |
Operating income: | ||
Consolidation and intersegment eliminations | (12) | 30 |
Total segment operating income | 89,454 | 88,000 |
General and administrative expenses | 27,494 | 27,167 |
Other depreciation and amortization expense | 2,498 | 1,814 |
Total operating income (loss) | 59,462 | 59,019 |
Storage Segment
|
||
Revenues: | ||
Third parties | 131,414 | 127,687 |
Intersegment | 10,894 | 17,045 |
Related party | 2,011 | 697 |
Total | 144,319 | 145,429 |
Operating income: | ||
Operating income (loss) | 51,178 | 56,147 |
Pipeline Segment
|
||
Revenues: | ||
Third parties | 93,277 | 77,761 |
Operating income: | ||
Operating income (loss) | 39,881 | 37,216 |
Fuels Marketing Segment
|
||
Revenues: | ||
Third parties | 773,008 | 1,403,260 |
Operating income: | ||
Operating income (loss) | (1,593) | (5,393) |
Intersegment Elimination
|
||
Revenues: | ||
Intersegment | $ (10,894) | $ (17,045) |
PARTNERS' EQUITY Narrative 1 (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
Distributions Made to Limited Partners and General Partner [Line Items] | ||
Distribution paid date | Feb. 14, 2013 | |
Cash distributions paid to partners | $ 98,051 | $ 89,076 |
Distribution paid per limited partnership unit | $ 1.095 | |
Cash distributions per unit applicable to limited partners (distribution earned) | $ 1.095 | $ 1.095 |
Distribution payment date (distribution earned) | May 10, 2013 | |
Distribution date of record (distribution earned) | May 06, 2013 | |
Total cash distributions (distribution earned) | $ 98,051 | $ 89,076 |
DEBT
|
3 Months Ended |
---|---|
Mar. 31, 2013
|
|
DEBT [Abstract] | |
DEBT | DEBT Revolving Credit Agreement During the three months ended March 31, 2013, we borrowed an aggregate $330.0 million under our $1.5 billion five-year revolving credit agreement (the 2012 Revolving Credit Agreement) to fund our capital expenditures and repay our $229.9 million 6.05% senior notes due March 15, 2013. Additionally, we repaid $488.3 million of the outstanding borrowings under the 2012 Revolving Credit Agreement during the three months ended March 31, 2013. The 2012 Revolving Credit Agreement bears interest, at our option, based on either an alternative base rate or a LIBOR-based rate. The interest rate on the 2012 Revolving Credit Agreement is subject to adjustment if our debt rating is downgraded (or subsequently upgraded) by certain credit rating agencies. As of March 31, 2013, our weighted average interest rate was 2.2%, which reflects current interest rate adjustments, including a credit rating downgrade by Moody’s Investor Service (Moody’s) in January 2013. The 2012 Revolving Credit Agreement contains customary restrictive covenants, including requiring us to maintain, as of the end of each rolling period, which consists of any period of four consecutive fiscal quarters, a consolidated debt coverage ratio (consolidated indebtedness to consolidated EBITDA, as defined in the 2012 Revolving Credit Agreement) not to exceed 5.00-to-1.00. However, if we consummate an acquisition for an aggregate net consideration of at least $50.0 million, the maximum consolidated debt coverage ratio will increase to 5.50-to-1.00 for two rolling periods. As of March 31, 2013, our consolidated debt coverage ratio could not exceed 5.50-to-1.00, as a result of our acquisition of certain crude oil assets from TexStar Midstream Services, LP and certain of its affiliates for approximately $325.0 million in December 2012. The requirement not to exceed a maximum consolidated debt coverage ratio may limit the amount we can borrow under the 2012 Revolving Credit Agreement to an amount less than the total amount available for borrowing. As of March 31, 2013, our consolidated debt coverage ratio was 4.3x, and we had $902.1 million available for borrowing. NuStar Logistics’ 6.05% Senior Notes In March 2013, we repaid the $229.9 million of 6.05% senior notes due March 15, 2013 with borrowings under our 2012 Revolving Credit Agreement. 7.625% Fixed-to-Floating Rate Subordinated Notes On January 22, 2013, NuStar Logistics issued $402.5 million of 7.625% fixed-to-floating rate subordinated notes due January 15, 2043 (the Subordinated Notes), including the underwriters’ option to purchase up to an additional $52.5 million principal amount of the notes, which was exercised in full. We received proceeds of approximately $391.2 million, net of $11.3 million of deferred issuance costs, which were used for general partnership purposes, including repayment of outstanding borrowings under our 2012 Revolving Credit Agreement. The Subordinated Notes are fully and unconditionally guaranteed on an unsecured and subordinated basis by NuStar Energy and NuPOP. The Subordinated Notes bear interest at a fixed annual rate of 7.625%, payable quarterly in arrears on January 15, April 15, July 15 and October 15 of each year beginning on April 15, 2013 and ending on January 15, 2018. Thereafter, the Subordinated Notes will bear interest at an annual rate equal to the sum of the three-month LIBOR rate for the related quarterly interest period plus 6.734% payable quarterly on January 15, April 15, July 15 and October 15 of each year, commencing April 15, 2018, unless payment is deferred in accordance with the terms of the notes. NuStar Logistics may elect to defer interest payments on the Subordinated Notes on one or more occasions for up to five consecutive years. Deferred interest will accumulate additional interest at a rate equal to the interest rate then applicable to the Subordinated Notes until paid. If NuStar Logistics elects to defer interest payments, NuStar Energy cannot declare or make cash distributions to its unitholders during the period interest is deferred. The Subordinated Notes do not have sinking fund requirements and are subordinated to existing senior unsecured indebtedness of NuStar Logistics and NuPOP. The Subordinated Notes do not contain restrictions on NuStar Logistics’ ability to incur additional indebtedness, including debt that ranks senior in priority of payment to the notes. In addition, the Subordinated Notes do not limit NuStar Logistics’ ability to incur indebtedness secured by certain liens or to engage in certain sale-leaseback transactions. At the option of NuStar Logistics, the Subordinated Notes may be redeemed in whole or in part at any time at a redemption price, which may include a make-whole premium, plus accrued and unpaid interest to the redemption date. Gulf Opportunity Zone Revenue Bonds In 2008, 2010 and 2011, the Parish of St. James, Louisiana issued, pursuant to the Gulf Opportunity Zone Act of 2005, tax-exempt revenue bonds (GoZone Bonds) associated with our St. James, Louisiana terminal expansions. The GoZone Bonds bear interest based on a weekly tax-exempt bond market interest rate, and we pay interest monthly. The interest rate was 0.1% as of March 31, 2013. Following the issuance, the proceeds were deposited with a trustee and are disbursed to us upon our request for reimbursement of expenditures related to our St. James terminal expansions. We include the amount remaining in trust in “Other long-term assets, net,” and we include the amount of bonds issued in “Long-term debt, less current portion” on the consolidated balance sheets. For the three months ended March 31, 2013, we received $4.2 million from the trustee. As of March 31, 2013, the amount remaining in trust totaled $122.3 million. Port Authority of Corpus Christi Note Payable In February 2013, we repaid the remaining principal balance of $0.6 million on our $12.0 million note payable due to the Port of Corpus Christi Authority of Nueces County, Texas. Other In January 2013, Moody’s lowered our credit rating to Ba1 from Baa3. This downgrade caused the interest rates on the 2012 Revolving Credit Agreement, NuStar Terminals Limited’s £21 million amended and restated term loan agreement and NuStar Logistics’ $350.0 million of 7.65% senior notes due 2018 to increase by 0.375%, 0.375% and 0.25%, respectively, effective January 2013. This downgrade may also require us to provide additional credit support for certain contracts. |