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 99.01 | Press Release dated November 2, 2016. |
NUSTAR ENERGY L.P. | ||||
By: | Riverwalk Logistics, L.P. | |||
its general partner | ||||
By: | NuStar GP, LLC | |||
its general partner | ||||
Date: November 2, 2016 | 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 99.01 | Press Release dated November 2, 2016. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Statement of Income Data: | |||||||||||||||
Revenues: | |||||||||||||||
Service revenues | $ | 277,758 | $ | 288,574 | $ | 814,727 | $ | 833,128 | |||||||
Product sales | 163,660 | 204,992 | 470,198 | 785,993 | |||||||||||
Total revenues | 441,418 | 493,566 | 1,284,925 | 1,619,121 | |||||||||||
Costs and expenses: | |||||||||||||||
Cost of product sales | 155,129 | 193,958 | 441,736 | 738,074 | |||||||||||
Operating expenses | 117,432 | 122,634 | 335,315 | 355,419 | |||||||||||
General and administrative expenses | 26,957 | 23,679 | 73,399 | 75,425 | |||||||||||
Depreciation and amortization expense | 53,946 | 52,301 | 160,739 | 157,523 | |||||||||||
Total costs and expenses | 353,464 | 392,572 | 1,011,189 | 1,326,441 | |||||||||||
Operating income | 87,954 | 100,994 | 273,736 | 292,680 | |||||||||||
Interest expense, net | (35,022 | ) | (33,448 | ) | (103,374 | ) | (98,309 | ) | |||||||
Other income (expense), net | 362 | 1,776 | (10 | ) | 61,892 | ||||||||||
Income from continuing operations before income tax expense | 53,294 | 69,322 | 170,352 | 256,263 | |||||||||||
Income tax expense | 2,153 | 4,306 | 9,293 | 9,797 | |||||||||||
Income from continuing operations | 51,141 | 65,016 | 161,059 | 246,466 | |||||||||||
Income from discontinued operations, net of tax | — | — | — | 774 | |||||||||||
Net income | $ | 51,141 | $ | 65,016 | $ | 161,059 | $ | 247,240 | |||||||
Net income applicable to limited partners | $ | 38,592 | $ | 52,911 | $ | 123,410 | $ | 209,881 | |||||||
Basic and diluted net income per unit applicable to limited partners: | |||||||||||||||
Continuing operations | $ | 0.49 | $ | 0.68 | $ | 1.58 | $ | 2.68 | |||||||
Discontinued operations | — | — | — | 0.01 | |||||||||||
Total | $ | 0.49 | $ | 0.68 | $ | 1.58 | $ | 2.69 | |||||||
Basic weighted-average limited partner units outstanding | 78,031,053 | 77,886,078 | 77,934,802 | 77,886,078 | |||||||||||
Other Data (Note 1): | |||||||||||||||
EBITDA from continuing operations | $ | 142,262 | $ | 155,071 | $ | 434,465 | $ | 512,095 | |||||||
DCF from continuing operations available to limited partners | $ | 87,613 | $ | 89,360 | $ | 277,460 | $ | 288,280 | |||||||
September 30, | December 31, | ||||||||||||||
2016 | 2015 | 2015 | |||||||||||||
Balance Sheet Data: | |||||||||||||||
Total debt | $ | 3,160,049 | $ | 3,151,359 | $ | 3,139,612 | |||||||||
Partners’ equity | $ | 1,469,993 | $ | 1,653,900 | $ | 1,609,844 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Pipeline: | |||||||||||||||
Refined products pipelines throughput (barrels/day) | 536,509 | 531,034 | 532,275 | 512,340 | |||||||||||
Crude oil pipelines throughput (barrels/day) | 384,359 | 477,537 | 398,229 | 483,974 | |||||||||||
Total throughput (barrels/day) | 920,868 | 1,008,571 | 930,504 | 996,314 | |||||||||||
Throughput revenues | $ | 122,481 | $ | 131,395 | $ | 362,929 | $ | 378,030 | |||||||
Operating expenses | 41,331 | 41,199 | 110,494 | 113,141 | |||||||||||
Depreciation and amortization expense | 22,228 | 21,660 | 65,696 | 62,893 | |||||||||||
Segment operating income | $ | 58,922 | $ | 68,536 | $ | 186,739 | $ | 201,996 | |||||||
Storage: | |||||||||||||||
Throughput (barrels/day) | 810,470 | 872,877 | 788,963 | 903,506 | |||||||||||
Throughput terminal revenues | $ | 30,239 | $ | 32,051 | $ | 88,307 | $ | 98,365 | |||||||
Storage terminal revenues | 127,528 | 130,052 | 373,733 | 371,714 | |||||||||||
Total revenues | 157,767 | 162,103 | 462,040 | 470,079 | |||||||||||
Operating expenses | 69,722 | 73,505 | 206,883 | 220,137 | |||||||||||
Depreciation and amortization expense | 29,625 | 28,612 | 88,661 | 88,227 | |||||||||||
Segment operating income | $ | 58,420 | $ | 59,986 | $ | 166,496 | $ | 161,715 | |||||||
Fuels Marketing: | |||||||||||||||
Product sales and other revenue | $ | 166,191 | $ | 206,696 | $ | 476,499 | $ | 790,719 | |||||||
Cost of product sales | 157,567 | 198,006 | 450,705 | 750,086 | |||||||||||
Gross margin | 8,624 | 8,690 | 25,794 | 40,633 | |||||||||||
Operating expenses | 8,961 | 10,509 | 25,512 | 29,877 | |||||||||||
Segment operating (loss) income | $ | (337 | ) | $ | (1,819 | ) | $ | 282 | $ | 10,756 | |||||
Consolidation and Intersegment Eliminations: | |||||||||||||||
Revenues | $ | (5,021 | ) | $ | (6,628 | ) | $ | (16,543 | ) | $ | (19,707 | ) | |||
Cost of product sales | (2,438 | ) | (4,048 | ) | (8,969 | ) | (12,012 | ) | |||||||
Operating expenses | (2,582 | ) | (2,579 | ) | (7,574 | ) | (7,736 | ) | |||||||
Total | $ | (1 | ) | $ | (1 | ) | $ | — | $ | 41 | |||||
Consolidated Information: | |||||||||||||||
Revenues | $ | 441,418 | $ | 493,566 | $ | 1,284,925 | $ | 1,619,121 | |||||||
Cost of product sales | 155,129 | 193,958 | 441,736 | 738,074 | |||||||||||
Operating expenses | 117,432 | 122,634 | 335,315 | 355,419 | |||||||||||
Depreciation and amortization expense | 51,853 | 50,272 | 154,357 | 151,120 | |||||||||||
Segment operating income | 117,004 | 126,702 | 353,517 | 374,508 | |||||||||||
General and administrative expenses | 26,957 | 23,679 | 73,399 | 75,425 | |||||||||||
Other depreciation and amortization expense | 2,093 | 2,029 | 6,382 | 6,403 | |||||||||||
Consolidated operating income | $ | 87,954 | $ | 100,994 | $ | 273,736 | $ | 292,680 |
(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 and (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. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Income from continuing operations | $ | 51,141 | $ | 65,016 | $ | 161,059 | $ | 246,466 | |||||||
Interest expense, net | 35,022 | 33,448 | 103,374 | 98,309 | |||||||||||
Income tax expense | 2,153 | 4,306 | 9,293 | 9,797 | |||||||||||
Depreciation and amortization expense | 53,946 | 52,301 | 160,739 | 157,523 | |||||||||||
EBITDA from continuing operations | 142,262 | 155,071 | 434,465 | 512,095 | |||||||||||
Interest expense, net | (35,022 | ) | (33,448 | ) | (103,374 | ) | (98,309 | ) | |||||||
Reliability capital expenditures | (8,512 | ) | (9,239 | ) | (25,834 | ) | (22,066 | ) | |||||||
Income tax expense | (2,153 | ) | (4,306 | ) | (9,293 | ) | (9,797 | ) | |||||||
Distributions from joint venture | — | — | — | 2,500 | |||||||||||
Mark-to-market impact of hedge transactions (a) | (3,954 | ) | (4,852 | ) | 6,492 | (4,531 | ) | ||||||||
Unit-based compensation (b) | 1,291 | — | 3,499 | — | |||||||||||
Other items (c) | 6,567 | (1,100 | ) | 9,903 | (53,314 | ) | |||||||||
DCF from continuing operations | $ | 100,479 | $ | 102,126 | $ | 315,858 | $ | 326,578 | |||||||
Less DCF from continuing operations available to general partner | 12,866 | 12,766 | 38,398 | 38,298 | |||||||||||
DCF from continuing operations available to limited partners | $ | 87,613 | $ | 89,360 | $ | 277,460 | $ | 288,280 | |||||||
Distributions applicable to limited partners | $ | 85,943 | $ | 85,285 | $ | 256,513 | $ | 255,855 | |||||||
Distribution coverage ratio (d) | 1.02x | 1.05x | 1.08x | 1.13x |
(a) | 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. |
(b) | In connection with the employee transfer from NuStar GP, LLC on March 1, 2016, we assumed obligations related to awards issued under a long-term incentive plan, and we intend to satisfy the vestings of equity-based awards with the issuance of our 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. |
(c) | Other items consist of (i) adjustments for throughput deficiency payments and construction reimbursements for all periods presented and (ii) in 2015, a $56.3 million non-cash gain associated with the Linden terminal acquisition on January 2, 2015. |
(d) | Distribution coverage ratio is calculated by dividing DCF from continuing operations available to limited partners by distributions applicable to limited partners. |