Delaware | 001-16417 | 74-2956831 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
19003 IH-10 West San Antonio, Texas 78257 | ||
(Address of principal executive offices) | ||
(210) 918-2000 | ||
(Registrant’s telephone number, including area code) | ||
Not applicable | ||
(Former name or former address, if changed since last report.) |
Exhibit Number | EXHIBIT | |
Exhibit 99.1 | Press Release dated July 25, 2014. |
NUSTAR ENERGY L.P. | ||||
By: | Riverwalk Logistics, L.P. | |||
its general partner | ||||
By: | NuStar GP, LLC | |||
its general partner | ||||
Date: July 25, 2014 | By: | /s/ Amy L. Perry | ||
Name: | Amy L. Perry | |||
Title: | Senior Vice President, General Counsel-Corporate & Commercial Law and Corporate Secretary |
Exhibit Number | EXHIBIT | |
Exhibit 99.1 | Press Release dated July 25, 2014. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Statement of Income Data: | |||||||||||||||
Revenues: | |||||||||||||||
Service revenues | $ | 259,562 | $ | 231,451 | $ | 488,900 | $ | 457,210 | |||||||
Product sales | 490,183 | 670,563 | 1,110,058 | 1,442,990 | |||||||||||
Total revenues | 749,745 | 902,014 | 1,598,958 | 1,900,200 | |||||||||||
Costs and expenses: | |||||||||||||||
Cost of product sales | 473,755 | 648,766 | 1,068,714 | 1,401,020 | |||||||||||
Operating expenses | 115,537 | 111,315 | 221,602 | 224,832 | |||||||||||
General and administrative expenses | 23,163 | 19,653 | 44,019 | 47,147 | |||||||||||
Depreciation and amortization expense | 47,936 | 45,308 | 94,166 | 86,871 | |||||||||||
Total costs and expenses | 660,391 | 825,042 | 1,428,501 | 1,759,870 | |||||||||||
Operating income | 89,354 | 76,972 | 170,457 | 140,330 | |||||||||||
Equity in earnings (loss) of joint ventures | 3,294 | (10,128 | ) | (1,012 | ) | (21,271 | ) | ||||||||
Interest expense, net | (33,122 | ) | (31,035 | ) | (67,539 | ) | (62,026 | ) | |||||||
Interest income from related party | — | 1,610 | 1,055 | 2,732 | |||||||||||
Other (expense) income, net | (474 | ) | 2,184 | 3,204 | 2,528 | ||||||||||
Income from continuing operations before income tax expense | 59,052 | 39,603 | 106,165 | 62,293 | |||||||||||
Income tax expense | 1,865 | 4,891 | 5,982 | 7,982 | |||||||||||
Income from continuing operations | 57,187 | 34,712 | 100,183 | 54,311 | |||||||||||
(Loss) income from discontinued operations, net of tax (Note 1) | (1,788 | ) | (1,743 | ) | (5,147 | ) | 3,062 | ||||||||
Net income | $ | 55,399 | $ | 32,969 | $ | 95,036 | $ | 57,373 | |||||||
Net income applicable to limited partners | $ | 43,599 | $ | 21,619 | $ | 71,743 | $ | 34,887 | |||||||
Net income (loss) per unit applicable to limited partners: | |||||||||||||||
Continuing operations | $ | 0.58 | $ | 0.30 | $ | 0.98 | $ | 0.40 | |||||||
Discontinued operations (Note 1) | (0.02 | ) | (0.02 | ) | (0.06 | ) | 0.05 | ||||||||
Total | $ | 0.56 | $ | 0.28 | $ | 0.92 | $ | 0.45 | |||||||
Weighted-average limited partner units outstanding | 77,886,078 | 77,886,078 | 77,886,078 | 77,886,078 | |||||||||||
EBITDA from continuing operations (Note 2) | $ | 140,110 | $ | 114,336 | $ | 266,815 | $ | 208,458 | |||||||
DCF from continuing operations (Note 2) | $ | 106,321 | $ | 69,565 | $ | 197,033 | $ | 139,451 | |||||||
June 30, | December 31, | ||||||||||||||
2014 | 2013 | 2013 | |||||||||||||
Balance Sheet Data: | |||||||||||||||
Long-term debt | $ | 2,726,629 | $ | 2,500,948 | $ | 2,655,553 | |||||||||
Partners’ equity | $ | 1,809,359 | $ | 2,440,266 | $ | 1,903,794 | |||||||||
Consolidated debt coverage ratio (Note 3) | 4.0x | 4.3x | 4.4x |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Pipeline: | |||||||||||||||
Refined products pipelines throughput (barrels/day) | 521,391 | 459,663 | 497,315 | 465,446 | |||||||||||
Crude oil pipelines throughput (barrels/day) | 427,122 | 350,850 | 393,457 | 351,021 | |||||||||||
Total throughput (barrels/day) | 948,513 | 810,513 | 890,772 | 816,467 | |||||||||||
Throughput revenues | $ | 117,798 | $ | 96,976 | $ | 220,757 | $ | 190,253 | |||||||
Operating expenses | 38,072 | 29,101 | 69,689 | 66,507 | |||||||||||
Depreciation and amortization expense | 19,490 | 16,648 | 37,842 | 32,638 | |||||||||||
Segment operating income | $ | 60,236 | $ | 51,227 | $ | 113,226 | $ | 91,108 | |||||||
Storage: | |||||||||||||||
Throughput (barrels/day) | 894,194 | 813,345 | 857,967 | 741,872 | |||||||||||
Throughput revenues | $ | 31,216 | $ | 26,626 | $ | 58,686 | $ | 48,987 | |||||||
Storage lease revenues | 113,770 | 116,053 | 218,866 | 235,369 | |||||||||||
Total revenues | 144,986 | 142,679 | 277,552 | 284,356 | |||||||||||
Operating expenses | 69,091 | 72,212 | 134,358 | 136,865 | |||||||||||
Depreciation and amortization expense | 25,888 | 26,055 | 51,180 | 49,123 | |||||||||||
Segment operating income | $ | 50,007 | $ | 44,412 | $ | 92,014 | $ | 98,368 | |||||||
Fuels Marketing: | |||||||||||||||
Product sales and other revenue | $ | 493,651 | $ | 670,604 | $ | 1,114,622 | $ | 1,443,612 | |||||||
Cost of product sales | 477,830 | 654,202 | 1,077,305 | 1,412,934 | |||||||||||
Gross margin | 15,821 | 16,402 | 37,317 | 30,678 | |||||||||||
Operating expenses | 10,996 | 12,964 | 22,927 | 28,826 | |||||||||||
Depreciation and amortization expense | 4 | 6 | 11 | 13 | |||||||||||
Segment operating income | $ | 4,821 | $ | 3,432 | $ | 14,379 | $ | 1,839 | |||||||
Consolidation and Intersegment Eliminations: | |||||||||||||||
Revenues | $ | (6,690 | ) | $ | (8,245 | ) | $ | (13,973 | ) | $ | (18,021 | ) | |||
Cost of product sales | (4,075 | ) | (5,436 | ) | (8,591 | ) | (11,914 | ) | |||||||
Operating expenses | (2,622 | ) | (2,962 | ) | (5,372 | ) | (7,366 | ) | |||||||
Total | $ | 7 | $ | 153 | $ | (10 | ) | $ | 1,259 | ||||||
Consolidated Information: | |||||||||||||||
Revenues | $ | 749,745 | $ | 902,014 | $ | 1,598,958 | $ | 1,900,200 | |||||||
Cost of product sales | 473,755 | 648,766 | 1,068,714 | 1,401,020 | |||||||||||
Operating expenses | 115,537 | 111,315 | 221,602 | 224,832 | |||||||||||
Depreciation and amortization expense | 45,382 | 42,709 | 89,033 | 81,774 | |||||||||||
Segment operating income | 115,071 | 99,224 | 219,609 | 192,574 | |||||||||||
General and administrative expenses | 23,163 | 19,653 | 44,019 | 47,147 | |||||||||||
Other depreciation and amortization expense | 2,554 | 2,599 | 5,133 | 5,097 | |||||||||||
Consolidated operating income | $ | 89,354 | $ | 76,972 | $ | 170,457 | $ | 140,330 |
(1) | The results of operations for the following have been reported as discontinued operations for all periods presented: (i) the San Antonio Refinery and related assets, which we sold on January 1, 2013, and (ii) certain storage assets that were classified as “Assets held for sale” on the consolidated balance sheet as of December 31, 2013. |
(2) | NuStar Energy L.P. utilizes financial measures, earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations, distributable cash flow (DCF) from continuing operations and DCF from continuing operations per unit, which are not defined in U.S. generally accepted accounting principles. Management uses these financial measures because they are widely accepted financial indicators used by investors to compare partnership performance. In addition, management believes that these measures provide investors an enhanced perspective of the operating performance of the partnership’s assets and the cash that the business is generating. None of EBITDA from continuing operations, DCF from continuing operations or DCF from continuing operations per unit are intended to represent cash flows from operations for the period, nor are they presented as an alternative to net income or income from continuing operations. They should not be considered in isolation or as substitutes for a measure of performance prepared in accordance with U.S. generally accepted accounting principles. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Income from continuing operations | $ | 57,187 | $ | 34,712 | $ | 100,183 | $ | 54,311 | |||||||
Plus interest expense, net and interest income from related party | 33,122 | 29,425 | 66,484 | 59,294 | |||||||||||
Plus income tax expense | 1,865 | 4,891 | 5,982 | 7,982 | |||||||||||
Plus depreciation and amortization expense | 47,936 | 45,308 | 94,166 | 86,871 | |||||||||||
EBITDA from continuing operations | 140,110 | 114,336 | 266,815 | 208,458 | |||||||||||
Equity in (earnings) loss of joint ventures | (3,294 | ) | 10,128 | 1,012 | 21,271 | ||||||||||
Interest expense, net and interest income from related party | (33,122 | ) | (29,425 | ) | (66,484 | ) | (59,294 | ) | |||||||
Reliability capital expenditures | (7,239 | ) | (10,987 | ) | (11,998 | ) | (16,464 | ) | |||||||
Income tax expense | (1,865 | ) | (4,891 | ) | (5,982 | ) | (7,982 | ) | |||||||
Distributions from joint ventures | 728 | — | 3,094 | 4,652 | |||||||||||
Other items (a) | 4,311 | (6,500 | ) | 3,869 | (6,500 | ) | |||||||||
Mark-to-market impact of hedge transactions (b) | 6,692 | (3,096 | ) | 6,707 | (4,690 | ) | |||||||||
DCF from continuing operations | $ | 106,321 | $ | 69,565 | $ | 197,033 | $ | 139,451 | |||||||
Less DCF from continuing operations available to general partner | 12,766 | 12,766 | 25,532 | 25,532 | |||||||||||
DCF from continuing operations available to limited partners | $ | 93,555 | $ | 56,799 | $ | 171,501 | $ | 113,919 | |||||||
DCF from continuing operations per limited partner unit | $ | 1.20 | $ | 0.73 | $ | 2.20 | $ | 1.46 |
(a) | For 2014, other items consist of a net increase in deferred revenue associated with throughput deficiency payments and construction reimbursements. For 2013, other items consist of a $6.5 million reduction of the contingent consideration recorded in association with an acquisition. |
(b) | DCF from continuing operations excludes the impact of unrealized mark-to-market gains and losses that arise from valuing certain derivative contracts, as well as the associated hedged inventory. The gain or loss associated with these contracts is realized in DCF from continuing operations when the contracts are settled. |
(3) | The consolidated debt coverage ratio is calculated as consolidated indebtedness to consolidated EBITDA, as defined in our $1.5 billion five-year revolving credit agreement. |