Presentation Slides

Statements contained in this presentation that state management’s

expectations or predictions of the future are forward-looking statements

intended to be covered by the safe harbor provisions of the Securities Act of

1933

and

the

Securities

Exchange

Act

1934.

The

words

“believe,”

“expect,”

“should,”

“targeting,”

“estimates,”

and

other

similar

expressions

identify

forward-looking

statements.

important

note

that

actual

results

could

differ materially from those projected in such forward-looking statements. We

undertake no duty to update any forward-looking statement to conform the

statement to actual results or changes in the company’s expectations. For

more information concerning factors that could cause actual results to differ

from those expressed or forecasted, see NuStar

Energy L.P.’s annual report on

Form 10-K and quarterly reports on Form 10-Q, filed with the Securities and

Exchange

Commission

and

available

NuStar’s

website

www.nustarenergy.com.

Forward Looking Statements

Agenda

Topic

Presenter*

Page #

NuStar

Overview (15 minutes)

Curt Anastasio

Storage Segment Overview (15 minutes)

Danny Oliver

Transportation Segment Overview (10 minutes)

Danny Oliver

Asphalt Industry Outlook (5 minutes)

Mike Hoeltzel

Asphalt & Fuels Marketing Overview

(15 Minutes)

Paul Brattlof

Acquisition & Divestiture Opportunities

(10 minutes)

Mike Hoeltzel

Continuous Improvement & Operations

(5 minutes)

Rick Bluntzer

Finance Overview (5 minutes)

Steve Blank

Texas City Terminal Overview (15 minutes)

Kyle Oppliger

Closing Remarks

Curt Anastasio

Q&A

Break/Board Bus for Texas City Terminal

Bios

management

team

can

found

the

appendix

starting

page

UPDATE TIMES

When

created

the

2010

budget

the

Fall

2009,

knew

that

2010

would

“transitional”

year

because

our

decision

the

Fall

2008

cut

2009

growth

capex

meant

less

projects

coming

on-line

2010.

Nonetheless,

entered

2010

with

budget

that

assumed

improved

profitability

our

Asphalt

business

and

some incremental EBITDA from several internal growth projects. Those earnings improvements were

expected to be partially offset by reduced pipeline tariffs in the last half of 2010 and increased power costs

due to rising natural gas prices.

Through June 2010 actual earnings results exceeded budget targets due to better throughputs and power costs that were only

modestly higher

As we entered the 3rd quarter it became apparent that asphalt demand was substantially less than we had

anticipated. As a result, earnings guidance for the last half of 2010 and the full year 2010 was reduced for

asphalt operations.

Federal Stimulus spending in 2010 will be close to expected levels

Demand in the private sector, primarily residential and commercial real estate, is much lower than expected

In late August, NS started seeing stronger results in our Transportation and Asphalt & Fuels Marketing

businesses.

3rd quarter throughput on our refined products and ammonia pipelines were higher than anticipated

Revenue enhancement plans and cost control initiatives improved earnings in the Asphalt business

Tight asphalt supply in the Upper Midwest and Northeast due to heavy crude oil supply issues and improving crack spreads

also contributed to improved margins

Based on this improved outlook, we expect 2010 EBITDA for NS to be $20 to $40 million higher than 2009.

2010 EBITDA Expected to Exceed 2009 Results….

Stronger

than

Expected

Results

the

2nd

Half

the

Year

have

led

Improved Outlook for 2010

In May we closed on the acquisition of three storage terminals in Mobile County, Alabama. By

December we expect to close the acquisition of a majority, operating interest in two terminals in

Mersin, Turkey. Total purchase price for both acquisitions is ~$100 million.

Ten internal growth projects totaling an investment of approximately $135 million, which are

expected to generate an additional $35-$40 million of annual EBITDA going forward, will be

completed this year. Larger EBITDA projects (St. Eustatius project and Texas City project) will not be

on-line until 4

Quarter of 2010.

Accessed

the

Capital

markets

twice

during

the

year

improve

our

balance

sheet

and

increase

our

revolver availability

Issued $240 million of equity in May. Proceeds were used to finance the May terminal acquisition and to improve

our balance sheet by paying off a portion of the borrowings outstanding under our revolver.

Issued $450 million of Senior Notes in August with a coupon of 4.8%. Proceeds were used to pay down a significant

portion of our revolver.

Continued to maintain an outstanding safety record and obtain results far superior to our industry

peers.

Obtained VPP Star Site status in our Central West Region South.

Continue to be ranked nationally, regionally and locally as one of the top places to work in America.

During 2010 NuStar

has grown through Acquisitions and Internal Growth

Projects…Improved the Condition of our Balance Sheet…Continued to

Receive Recognition for Outstanding Safety Results and being a Great

Place to Work

EBITDA ($ in Millions)

Weaker than expected asphalt and fuels marketing results caused 2009 EBITDA to drop.

2010 EBITDA expected to exceed 2009 levels by $20 to $40 million.

All of our segments should perform better than last year.

2011 EBITDA projected to be higher than 2010.

Internal growth projects in storage segment alone should increase 2011 EBITDA by $30 to $40 million

EBITDA Expected to restart growth trend

in 2010 and continue into 2011

2002

2003

2004

2005

2006

2007

2008

2009

$77

$112

$133

$219

$322

$353

$492

$461

Majority of 2011 Internal Growth Capital

Will to be spent in the Storage Segment

2011

Total

CAPEX

Asphalt

Fuels

Marketing

Paulsboro Alternative Crude Project

$11

Storage:

St. James Crude Oil Expansion-Phase 1

$88

$120

St. James Crude Oil Expansion-Phase 2

$23

$129

St. Eustatius Tank Expansion & Conversion for Diesel Storage$27

$45

Jacksonville Terminal Expansion

$10

$25

Turkey Terminal Expansions (Giresun

& Mersin)

$20

Denver Terminal Expansion

$11

$13

Transportation

Pettus

South Eagle Ford Crude

Corporate

New Office Building

$54

$95

Major Projects >$5 Million:

Annual Internal Growth Spending By Business Segment

(Dollars in Millions)

$146

$222

$325

$164

$22

2006

2007

2008

2009

$1.28

$1.38

$1.58

$1.73

** Based on NSH annualized distribution of $0.32 per unit in 2006

NSH

Distribution

increased

10.6%

CAGR

since

IPO

NSH

increased

the

quarter

2010

distribution

$0.48

per

unit

2010

distribution

will

total

$1.87

per

unit

$0.48

per

unit

distribution

held

flat

quarter. Total 2010 distribution ~8% higher than total 2009 distribution.

2010 distribution increases driven mostly by higher general partner distributions and higher

incentive distribution rights paid to general partner as a result of NS November 2009 and May

2010 equity offerings

Safety and Environmental Performance in 2010

Continues to Exceed Industry Benchmarks

NuStar

Injury Incident Frequency Rates

*Through September 2010

NuStar

2010 Safety and Environmental Awards

Independent

Liquid Terminals

Association

Safety Excellence

Award

NPRA Distinguished

Safety Award

Savannah Refinery

Perfect Record

Award -

National

Safety Council

Million Hours

Award -

National

Safety Council

Safety Leadership

Award -

National

Safety Council

Occupational

Excellence Award-

National Safety

Council

Texas General Land

Office-2009 Oil Spill

Prevention &

Response Program

Award

Industry Benchmarks

1.49

1.36

0.76

0.31

0.72

0.14

0.19

0.15

0.00

0.07

2006

2007

2008

2009

2010

TRIR

LTIR

TRIR

2006

2007

2008

Refineries

1.4

1.6

1.1

Pipelines

2.2

2.0

1.6

Terminals

5.6

5.8

6.4

LTIR

2006

2007

2008

Refineries

0.5

0.3

0.2

Pipelines

0.6

0.5

Terminals

1.1

1.7

1.8

TRIR – Total Recordable Incidents Rate LTIR – Lost Time Incidents Rate

Recognized for our significant growth over the past

few years

Ranked No. 1 among large companies for growth, Fast

Track Awards, San Antonio Business Journal

Placed 2

among

the Top 50 Fastest Growing Energy

Companies in the World, Platts

Earned recognition on a national, state and local level

for being a great place to work

Recently named #1 large employer in San Antonio

Strengthened organization by adding key

management team members and reorganizing a

couple of departments

Improved service to internal customers through changes in

the IS and HR departments

Positioned organization so it’s better able to evaluate,

acquire and integrate new assets

Expanded

training

programs

improve

employees’

skills

and develop managers’

leadership abilities

NuStar

Continues to be a World-Class Organization

Earned a reputation as a great corporate citizen in

all of our communities in just three years

Set new records for charitable giving and volunteerism to

the United Way, Haven for Hope and countless charities

in our communities

2010 Storage Segment Results Should be Improved over 2009..

2011 EBITDA Expected to be Higher than

2010 due to Benefits from Internal Growth Program

Storage Segment EBITDA

(in Millions)

2010 Summary

Results should be $14-$18 million higher than 2009.

Storage tank renewals and escalations increased revenues significantly during the year.

Two acquisitions should be closed during the year. (Mobile, AL. and Mersin, Turkey)

St. Eustatius terminal reconfiguration project and Texas City Strategic Ike project to be completed in

Dec. 2010.

2011 Outlook

Demand for storage should remain strong

Internal growth projects should increase EBITDA by $30 to $40 million

St. James storage expansion project to be completed in August 2011 through January 2012.

Full year of EBITDA from two acquisitions, St. Eustatius and Texas City 2010 projects.

2006

2007

2008

2009

$162

$177

$208

$242

Demand for Storage Continues to be strong…

33% of Existing customer storage leases have remaining lives

of three years or more

Storage Contract Renewals (% of Revenues)

NuStar continues to enter into storage agreements with large credit worthy customers

Current customers and potential new customers continue to approach us about

constructing new tankage at several of our terminal locations.

Storage rate increases not expected to be as large in 2011 as the rate increases we saw

in 2010.

< 1 Year

1 to 3 Years

3 to 5 Years

> 5 Years

28%

39%

21%

12%

Conversion Project

Convert 600,000 barrels of storage from fuel oil to distillate service to capture

higher storage fees

Expansion Project

Construct 900,000 barrels of new storage for distillate service

Interested customers include several national oil companies

Combined conversion and expansion projected CAPEX of $40 to $50 million, with

average annual EBITDA of $5 to $10 million

Expected in-service by February 2012 (Conversion Project) and September 2012

(Expansion Project)

St. Eustatius project will convert existing tanks and

construct new tanks for distillate service

Jacksonville Storage Expansion

Construct 500,000 barrels of clean products storage to support

a major refiner’s expansion

Projected CAPEX of $20 to $30 million, with average annual

EBITDA of $5 to 10 million

Expected in-service by March 2012

Denver Terminal Expansion

Construct a new truck loading rack to serve a Denver refiner’s

refined product output and attract incremental volumes from

other new customers

Projected CAPEX of $10 to $15 million, with average annual

EBITDA of $1 to $5 million

Expected in-service by January 2012

Jacksonville expansion constructs new tankage

…Denver expansion constructs new loading rack

Linden Fuel Oil Conversion (Joint Venture Terminal)

Convert two, 320,000 barrel tanks currently in fuel oil service to clean light

products service to capture higher storage fees and reduce anticipated

maintenance capital and operating expenses

Projected CAPEX $1 to $5 million, with average annual EBITDA of $1 to $3 million

EBITDA will be included in equity in earnings of the Joint Venture

Expected in-service by February 2011

Selby Truck Rack Expansion

Add an additional loading position to the existing loading rack to support additional

light clean products and ethanol throughput

Projected CAPEX $2 to $5 million, with average annual EBITDA of $3 to $5 million

Expected in-service by June 2011

South Texas Valley System Ethanol

Convert Edinburg and Harlingen Terminals to ethanol blending, and create a Rio

Grande Valley ethanol distribution Hub at Harlingen Terminal

Projected CAPEX $4 to $8 million, with average annual EBITDA of $2 to $4 million

Expected in-service by July 2011

Additional projects with spend of less than $10

million planned…should be in service by end of 2011

2006

2007

2008

2009

$170

$176

$186

$190

2010

Transportation

Segment

Results

Should

Improved

over

2009..

2011 EBITDA Expected to be slightly less than 2010

Transportation Segment EBITDA

(in Millions)

2010 Summary

Results $5-$10 million higher than 2009.

Throughputs higher than 2009. Improving economy and customer turnaround delayed into

2011.

July 1, 2010 tariff decrease 1.3%. Tariffs were 7.6% higher than 2009 for the first half of 2010.

2011 Outlook

$1-$5 million of additional EBITDA from internal growth projects. Recently announced Eagle

Ford shale crude project to be completed in mid-2011.

Revised FERC Escalator in place July 1, 2011. Tariffs budgeted up 4.5%. (Assumed 1.3% FERC

Escalator)

Throughputs budgeted down 1.6%.

Segment EBITDA down slightly in 2011.

Clawson to McKee Pipeline Expansion planned for 2011

Increase capacity of the Clawson to McKee crude oil pipeline by 6,000 barrels per

day to deliver additional regional crude oil production to customer’s McKee

refinery

Projected CAPEX of $1 to $3 million, with average annual EBITDA of almost $ 1

million

Expected in-service by July 2011

Projects being evaluated:

San Antonio, TX Expansion

Southlake System Service Conversion

Colorado crude gathering, and Southlake and Ardmore crude delivery systems

Bakken Shale Propane to North System Terminals

Additional projects planned or being evaluated in

the Transportation Segment

U.S. Asphalt Supply Outlook Continues to be

Shaped by New Cokers

During 2011-2013

Lower Coker utilization rates have been positive for asphalt margins

In the 2003-2006 “Golden Age of Refining,”

heavy crude supply exceeded the ability of

Cokers

to convert to light products

During this period, asphalt sold at a slight premium to its fuel

oil blending value –

well below Coker yield values

Starting

2007,

new

Cokers

combined

with

declining

heavy

crude

(primarily

Mexican

Maya) resulted in sparing of less efficient Cokers

U.S. Coker utilization dropped from 83% in 2006 to recent 72% level (August 2009 through July 2010)

Despite

asphalt

demand

destruction,

asphalt

prices

have

averaged

30-40%

Coker

yield

values

vs.

fuel

oil

blending value

A significant volume of current PADD 2 asphalt production will be consumed by

new Cokers

at Wood River, Whiting and Detroit by late 2012

Midwest region will transition from a net exporter to a net importer from adjacent

regions

Imports from East Coast and Gulf Coast areas represent the logical supply sources to make up this shortfall

Existing

NuStar

refineries

can

cover

portion

this

shortfall

2010 NuStar

crude runs are 58,000 bpd vs. nameplate capacity of 104,000 bpd

Remaining shortfall satisfied from various sources:

New or restarted on-purpose asphalt refineries

Imports from Caribbean, European or Canadian refiners that can redirect production

from fuel oil

Further sparing of Coker capacity, diverting heavy crude to asphalt production in fuels

refineries

Shortfall expected to drive asphalt margins toward Coker yield values

Start-up Dates for most of the Coker Projects

have not changed significantly

Announced Capacity MBPD

No.

Refinery

PADD

Coker

Crude

Start Up

Status

Previous Time-line

Cenex -

Laurel, Montana

15.0

1Q 2008

Complete

Frontier -

El Dorado, Kansas

3.0

11.0

2Q 2008

Complete

Tesoro -

Martinez, CA

4.4

2Q 2008

Complete

ConocoPhillips -

LA, CA

5.0

4Q 2008

Complete

Marathon -

Garyville, Louisiana

III

44.0

180.0

1Q 2010

Complete

Previous 4Q2009

Hunt -

Tuscaloosa, Alabama

III

18.5

15.0

4Q 2010

Firm

Previous 3Q2010

ConocoP -

Wood River, IL

65.0

55.0

2Q 2011

Firm

Previous 1Q011

Atofina -

Port Arthur, Texas

III

50.0

1Q 2011

Firm

BP -

Whiting, Indiana

95.0

30.0

1Q 2012

Firm

Motiva -

Port Arthur, Texas

III

95.0

325.0

3Q 2012

Firm

Previous 4Q 2010

Marathon -

Detroit, Michigan

28.0

13.0

2012 2nd Half

Firm

Total US Expansion

422.9

629.0

Expansions through 2009

27.4

11.0

Firm Expansions 2010-2013

395.5

618.0

Highlighted facilities with asphalt production capabilities

Asphalt Business Environment is Challenging in

2011 Before Significantly Improving in 2012+

2011 Outlook

Early year asphalt supply/demand balance will mirror 2010 as demand remains depressed and

fuels refinery throughputs and asphalt production are on par with 2010

Expect slight uptick in asphalt demand, particularly related to residential construction as

housing starts begin to recover from the recession

Tightening of supply/demand balance is expected; mid-year start up of Conoco Wood River

Coker can provide an opportunity for improved asphalt margins late in year

Export opportunities will be comparable to 2010 with primary focus on stable demand in

Caribbean and South American markets

2012 Outlook

Asphalt supply/demand balance will tighten further as demand recovers and fuels refinery

asphalt production shrinks with full year impact of Conoco Wood River Coker

Additional

reduction

asphalt

supply

expected

with

start

Whiting

and

Marathon

Detroit Cokers

Wholesale asphalt pricing is expected to achieve a higher percentage of Coker yield value

Export opportunities are expected to improve with tightening global supply/demand balance

New asphalt suppliers are expected to be positioning to enter market

2013-2015 Outlook

Asphalt supply will continue to tighten as demand recovers with U.S. economic recovery and

continued moderate growth in private residential asphalt demand market

Fuels

refinery

asphalt

production

will

reflect

full

year

impacts

Whiting

and

Marathon

Detroit Coker projects

Although wholesale asphalt pricing should continue to achieve a high percentage of Coker yield

value, this may taper off with increased Western Canadian heavy crude production

Expect new asphalt suppliers to enter market

$3.78

$8.78

$6.37

Improved Earnings in Bunkering, Heavy Fuel, Product and Crude

Trading Businesses Should Improve Segment in 2010…Segment

Should See Slightly Improved Results in 2011

Asphalt & Fuels Marketing

U.S. East Coast Product Margin ($ per barrel)

2009

Actual

2008

Actual

2000-2007

Average

2010 Summary

Asphalt results expected to be comparable to 2009.

Due to weak demand in the residential and commercial real estate markets, private sector industry asphalt demand was

down substantially in 2010

Higher refinery margins increased refinery utilization rates higher than expected, causing VTB and asphalt supply to

increase during the year.

During the 3

quarter, pipeline disruptions of Canadian crude reduced heavy crude runs in the Northeast reducing

asphalt supply.

However, the Fuels Marketing portion of segment will be $25 to $35 million higher than 2009.

Increased Bunker Marketing earnings are due to the consistent activity at St. Eustatius and higher sales volumes and

increased margins from our Texas City facility.

Fuel Oil Trading business also at Texas City, expected to contribute to year over year increase by blending supply for

Bunker Marketing group

2011 Outlook

Tighter Asphalt supply in the last half of 2011, due to Conoco Wood River coker

coming on-line, should cause asphalt

operations EBITDA to be improved.

Other operations in this segment should realize comparable results to 2010.

EBITDA (MM$)

2006

2007

2008

2009

$27

$22

$37

$10

$90

$70

Asphalt

Fuels Marketing

$127

$80

Supply Initiatives: Address Crude Availability/Price

and Asphalt Supply Cost

Working to Diversify our Crude Slate from Dependence on Venezuelan

crudes

Current PDV contract ends in the first quarter of 2015

are

the

process

negotiating

contract

secure

future

volume

heavy

asphaltic crude from non-Venezuelan source

Mid-Continent and Gulf Coast Asphalt Marketing dependent on purchases of

finished asphalt and asphalt component blending

Strategy is to negotiate asphalt off-take agreement with regional suppliers to reduce

supply cost and assure availability

Product Initiatives: Develop Alliances with Emulsion Customers and

Specialty Product Suppliers to Increase Maintenance Product Sales

NuStar product mix is historically weighted with Hot Mix Asphalt

products (new construction) versus Emulsion products (maintenance)

Downturn in Private/Commercial markets relative to Public Spending since

2005 has resulted in lower hot mix sales relative to maintenance

products

Private and Commercial paving markets are primarily hot mix asphalt

Public Highway spending is shifting toward maintenance products

We are developing alliances to increase our sales of Emulsions and

specialty maintenance products

Recent alliance with Road Science (RS) is a major step towards increasing

sales of specialty maintenance products

Initiatives active to increase sales with regional emulsion and maintenance

customers in all market areas

Heavy Oil Trading –

Texas City Rail Blending

Hub has become dependable outlet for Midwest Refiners

Market Update

In our first year of operation at Texas City,

the Domestic Heavy Oil Gathering Strategy

is on pace to meet 2010 goals even in the

current challenging margin environment

We started slow as refinery utilization rates

in 4Q09 and 1Q10 averaged 81.4% keeping

VTB

supply

tight.

The 2Q10 and 3Q10 utilization rates were

over 87% increasing VTB supply and

margins, full year 2011 rates are projected

to be over 86%

Currently buying product from 20 out of 34

identified refiners in the Midwest and

Rockies, becoming a reliable and

dependable outlet for their production

Most of the Heavy Oil bought is blended

into Bunker Fuel and sold internally to our

Bunker Marketing Group at Texas City; the

remainder is sold into the Houston area

spot market

Source:

Energy

Information

Administration

Market Update

Currently selling 1,300 m bbls

per month of

bunkers from 4 locations:

St. Eustatius

800 m bbls

per month plus 180 m

bbls

per month Bulk

Pt. Tupper

80 m bbls

per month

Texas City

350 m bbls

per month

Los Angeles

150 m bbls

per month

On July 1

new 1% Low Sulfur was required for

all Sulfur Emission Control Areas (SECA) mainly

in areas around Europe and in U.S. waters

are

seeing

incremental

demand

St.Eustatius

and

Texas City where we can make both High and Low

Sulfur grades available

Overall demand is up 3% over last year but

showing up mainly at the larger ports

Small ports are still seeing less traffic

Bunker Marketing –

2010 Looks to be

Best Year Ever

St.

Eustatius

Texas

City

Tupper

Los

Angeles

Upon Projected November Closing, Acquired Assets in Turkey

Provide Platform for Internal Growth

Turkey Geopolitical Highlights

Major constitutional referendum was

approved September 12, 2010

Further shifts Turkey to a western-style democratic

system

Turkey’s military’s empowerment weakened

Potential now for full rewrite of current

constitution in 2011

Recognized candidate for full EU membership

in 1999

Began process for admission into the EU in 2005

Expectation is full EU member status by 2015

NATO member and strong U.S. ally

Projected 6% to 7% GDP growth per annum

Joint Venture (JV) Overview

NuStar entered into a $50-$60 million

JV agreement with S-Oil and Aves Oil,

two Turkish companies

The JV will own 100% of two terminals

in Mersin and land in Giresun and

Ceyhan

NuStar will own 75% of the JV and will

operate the terminals

Both terminals connect via pipeline to

an offshore platform (SAVKA) 5 km off

the Turkish coastline

The JV will own 67% of SAVKA

Growth Opportunities

Expansion project under development at Mersin

Expands existing storage by about 70 percent

Potential to tie into NATO Pipeline

Provides access to markets for military fuels

New terminal at Giresun

37 acre site with access to Black Sea ports

200,000 barrel fuel oil terminal under development

Second phase build-out to 1.9 million barrels under

evaluation

New terminal at Ceyhan

Ceyhan is the destination for pipelines delivering

crude from northern Iraq and the Caspian area to the

Mediterranean

173 acre property is well-suited for building up to 6.3

million barrels of storage and marine jetty

Adjacent oil terminals in Mersin, Turkey

(100% owned by the JV)

One terminal built in 2003, other completed this

year

Combined sites of approximately 26 acres

1.35 million barrels of storage

Five pipelines to SAVKA docks

Each terminal has truck racks to serve local light

products market

SAVKA (67% owned by JV)

Fixed platform 5 km off the coast of Turkey

Can handle up to two Aframax size vessels

(80,000 dwt each) simultaneously

Maximum draft of 12.8 meters (39 feet)

Started operations in April 2010

Acquisition includes Two Terminals

in Mersin, Turkey

Ongoing Acquisition Strategy to Focus on

Large Fee-Based Acquisitions

Our primary targets are fee-based acquisitions to add immediate accretion to

distributable cash flow with minimum margin volatility

Domestic opportunities include pipeline and storage assets that are synergistic

with current assets

We continue to evaluate international expansion in hub storage locations

Primary target is Amsterdam-Rotterdam-Antwerp (“ARA”) region

Acquisition in Turkey provides synergies for further expansion in Mediterranean and

Middle East

We are looking at expanding Caribbean presence in locations in shipping lanes that are

expanding by changing trade flows

Increasing crude oil production from Brazil may provide storage and bunkering opportunities

Increased bunker demand from expansion of Panama Canal

Operational Improvement & Stewardship

Safety and Environmental

Attained OSHA’s Voluntary Protection Program (VPP) Star Status for the Central

West Region

Additional VPP compliance audits scheduled throughout 2011 in each region and the

Paulsboro Refinery

Continue Process Safety Management (PSM) implementation system wide

Improve our overall emergency response and incident command capabilities

Implement

“Safety

Behavioral

Awareness”

training

programs

Ensure operating and environmental permit compliance through audit programs

Continue refinement of our pipeline and tank integrity management program

Continue spill prevention and mitigation programs

Operations Stewardship & Continuous Improvement

Reliability

Continue to identify and improve on equipment bad actors program

Progression of the IMP program; third generation tool runs, allows for better

integrity analysis and development of a proactive improvement plan

Adhere to API 650 and 653 guidelines and inspection plan

Evaluate current Preventive Maintenance Program to ensure schedule

compliance and effectiveness

Improve cathodic protection with equipment upgrades, enhanced monitoring

program and frequencies

Enhanced Pipeline Leak Detection project for Control Center in progress

Implement full Distributed Controls Systems (DCS) at both refineries; optimize

margins and energy efficiency and improves operational reliability and

troubleshooting

Transportation

Continuous Improvement & EBITDA Initiatives

Crude Oil Transportation

2010

spot

freight

market

rates

increased

slightly,

but

continued

favorable

for

charters

Average 2010 base freight rate = $1.85/bbl vs. 2009 average of $1.46/bbl

Time charter update

Time charter rates have remained at the low levels reached in late 2009 with minimal activity

2010

fleet

strategy

was

monitor

and

potentially

charter

one

Panamax

and

one

Aframax

vessel

2011 strategy will be modified to fit changing long term crude sourcing

Reduce fleet size, if new crude contracts are set up to purchase on delivered basis

Potential

look

specialized

vessel(s)

meet

current

port

restrictions

Will continue to monitor spot vs. time charter rates

Over the long term time charters have opportunity for significant annual freight cost savings ($1.25 million)

Current spot and time charter rates at 10 year lows

Time charter rates are currently in excess of spot rate charter rate by $5,000-$10,000/day

Freight market expected to improve with increase oil demand in 2011

Strategy to lock in longer rate due to multi year lows and achieve maximum upside benefit

Demurrage

Maintain focus on rebillable demurrage

Continued biannual meetings to settle claims

Implement demurrage reduction projects at Texas City for intermediates

Work with Texas City Operations and Supply and Marketing to identify issues

Explore options for loading bunker barges on less used berths

Back cast performance of Paulsboro demurrage reduction project after construction

completion

Continue integration of rail car fleet across commercial department business lines

Expand and develop fleet requirements for existing new commercial trade flows

Texas City Fuel Oil Blending

St. James Crude Oil blending to include unit train operations

Continue to bring on younger/more efficient cars into the fleet on East Coast

Transportation

Continuous Improvement & EBITDA Initiatives

Since November of 2009 NuStar

has issued $529 million of equity

$289

million

November

2009

and

$240

million

May

2010

Proceeds were used to pay off borrowings under the Revolver and fund terminal acquisitions

Issued $450 million of Senior Notes in August 2010

Notes issued at a 4.8% coupon

Proceeds used to pay off borrowings under the Revolver

Notes swapped to floating to maintain 50/50 fixed to floating rate debt structure

date

swaps

have

also

minimized

negative

carry

associated

with

bonds

approximately

2.5%

Entered

into

$500

million

forward

starting

interest

rate

swaps

Qtr.

2010

Swaps relate to approximately 60% of our 2012 and 2013 senior note maturities

Locked

3.34%

average

year

treasury

rates

for

2012

and

2013

maturities

Issued $150 million of Go Zone Bonds during 2010

Bonds are tax-exempt Municipal bonds issued by St. James Parish Louisiana

Proceeds will be used to finance a portion of the St. James storage expansion project

NuStar

took Advantage of the Open Equity Capital Markets

and the Strong Bond Market in late 2009 and 2010

9/30/10 Revolver Availability

NuStar

Revolver Availability has increased due to

Equity

Issuances

and

Senior

Note

Issuance

Credit

Ratings

and

Metrics have Improved as a Result

Total Bank Credit

$1,210

Less:

Borrowings

(138)

Letters of Credit

Go Zone Financing

(157)

Other

(10)

Revolver Availability

$905

Standard

Poor’s:

BBB-

(Stable

Outlook)

Moody’s:

Baa3

(Stable

Outlook)

Fitch: BBB-

(Stable Outlook)

Debt/EBITDA (9/30/10): 4.6x

Debt/Capitalization (9/30/10): 42.5%

Credit Ratings/Metrics

(Dollars in Millions)

5.0x Revolver Debt/EBITDA covenant limits true Revolver availability to ~$200

million at 9/30/10

All

three

Rating

Agencies

upgraded

NuStar

Stable

Outlook

from

Negative

Outlook

during 2010

$1.2 billion Credit Facility

$138

NuStar

Logistics Notes (4.80%)

452

NuStar

Logistics Notes (7.65%)

349

NuStar

Logistics Notes (6.875%)

104

NuStar

Logistics Notes (6.05%)

239

NuStar

Pipeline Notes(5.875%)

256

NuStar

Pipeline Notes (7.75%)

261

Other Debt

192

Total Debt

$1,991

(Dollars in Millions)

No Significant Debt Maturities Until 2012

2010

$0.8

2011

$0.8

2012

$536*

2013

$496

2014

Thereafter

$957

* Primarily includes maturity of $138 million revolver balance

and $366 million of senior notes

9/30/10 Debt Structure

9/30/10 Debt Structure Maturities

No significant debt maturities until 2012 at which time the revolver and some senior notes

become due

New Credit Revolver terms and pricing seem to be improving as economy improves

Current plan is to hold off closing on a new Revolver until 2012

All Three Segments see EBITDA growth in

2010….Total NuStar

EBITDA should be higher in

2011

EBITDA Guidance Summary

Transportation

$10

million

2010.

Down

slightly

2011.

Storage up $14 to $18 million in 2010. Internal growth projects should add $30 to

$40 million to 2011 EBITDA.

Asphalt & Fuels Marketing

Asphalt Refining & Marketing operations for 2010 comparable to 2009. 2011

results should be slightly higher than 2010

Fuels

Marketing

2010

results

should

$25

$35

million

higher

than

2009.

2011 results comparable to 2010

2010 NuStar

EBITDA projected to be in the $480 to $500 million range. 2011

EBITDA higher, mostly driven by storage internal growth projects.

Texas City, TX. Terminal then…

July 1, 2005

Tanks

128

tanks

Capacity: 2,003,000 barrels

Employees 55 employees

Utilization Rate 98%

Size Range 1,000 to 112,000 barrels

Products Chemicals & Petroleum

Modes

Served

Vessel,

Barge,

Pipeline,

Rail,

Truck

3 Ship/Barge Docks (2 have

vessel capacity)

78 Rail Load/Unload Spots

53 Truck Load/Unload spots

Rail/Spur Data Over 3,000 feet of private and leased

track served by the Texas City

Terminal Railway, Burlington Northern

Santa Fe and Union Pacific

Commitment and Focus on Safety

NuStar

Culture –

Employees are #1 Asset!

Process Safety Management (PSM)

Best-

in-Class safety equipment & tools

Improved Safety Performance

Pre-merger Lost Time Injury Rate = 57

Current Lost Time Injury Rate = 0

3 years without a lost time injury (Oct 6

)

Improved Environmental Performance

Reportable spills –

Zero in 2009, 2 in 2010

Compliance calendar and audits

Modern tank integrity program –

API 653 driven

Equipment upgrades and preventive maintenance programs

Implemented NuStar

Culture…Improved

Safety & Environmental Performance

PSM Elements:

1.Employee participation

2.Hazard analysis

3.Training

4.Pre-start safety review

5.Permit to Work

6.Incident investigation

7.Compliance audits

8.Process safety info

9.Operating procedures

10.Contractor control

11.Mechanical integrity

12.Management of change

13.Emergency planning and

response

14.Trade secrets

Improved Customer Service

Established central control room for managing operation of facility

Implemented new movement and inventory tracking software along

with platform for controlling terminal’s automated equipment

Systems include integrated on-line interface for customers

Focus on strategic customers

Improved operability, flexibility, and reliability through

strategic projects

Striving for Operational Excellence

Creation of piping infrastructure that

maximizes ability for intra-terminal trading

Increase pumping rates to maximize marine

dock utilization

Investing in our community and employees:

Investing in our Community & Employees

Community

On pace to exceed 4,000 volunteer

hours in 2010!

United Way recognized NuStar

employees with highest per capita

contribution award

Several terminal employees on

Service Organization boards

Employees

Best in class benefits / security

Health assessments and wellness challenge programs

Focus on employee development associated with terminal transition

Operations, maintenance and business system training

Equip our personnel with quality tools to do the job

Improved communication programs via roundtables, safety

committees

Texas City, Texas Terminal today…..

October 27, 2010

Tanks

tanks

Capacity: 2,815,000 barrels

Employees 57 employees

Utilization Rate 98%

Size Range 8,000 to 200,000 barrels

Products Petroleum & Petrochemicals

Modes

Served

Vessel,

Barge,

Pipeline,

Rail,

Truck

3 Ship/Barge

Docks

have

vessel

capacity)

68 Petroleum (heated) Rail unload spots

11 Chemical Rail Load/ unload spots

2 Centralized Truck Load/ unload spots

Connectivity to BP, Marathon, Valero

Rail/Spur Data Over 7,000 feet of private and leased

track served by the Texas City

Terminal Railway, Burlington Northern

Santa Fe and Union Pacific

In 5 short years, NuStar

has transformed the Texas City terminal

into to a premier black oil blending and trading location asset

Upgraded approximately 450,000 barrels of existing tankage

Constructed in excess of 1.1 million barrels of new tankage

Constructed premier Gulf Coast heated railcar off-loading facility

Demonstrating best-in-class operations, excellence in safety and

environmental performance, customer service and community

involvement

Texas City’s future is bright as customer interest remains strong

with industry recognition of hub strategy

Summary

Management Bios

Curt Anastasio, CEO & President

President

and

CEO

NuStar

Energy

(NYSE:

NS)

and

NuStar

Holdings,

LLC

(NYSE: NSH)

Anastasio

has

been

President

NuStar

Energy

L.P.

and

its

predecessors

since

December

1999,

and

assumed

the

position

CEO

NuStar

Holdings,

LLC in

2006.

Prior

becoming

President

NuStar

GP,

LLC

1999,

Anastasio

held

various

positions in supply, trading, transportation, marketing, development and legal. He

has 22 years of industry experience.

Curt serves on the Board of the National Association of Publicly Traded

Partnerships.

In addition to participating in various volunteer activities, Curt serves on the Board

of Trustees of the United Way of San Antonio and Bexar County, and is the

communitywide United Way Campaign Chairman for 2011. He also serves as

board

member

the

San

Antonio

Medical

Foundation,

Southwest

Research

Institute, the Southwest Foundation for Biomedical Research, the Greater San

Antonio Chamber of Commerce, the Alamo Area Council of the Boy Scouts of

America,

and

the

Economic

Development

Foundation

–

all

San

Antonio.

addition, Anastasio

belongs to various professional organizations and has lectured

and written on legal and business topics.

Curt received a Juris

Doctorate degree from Harvard Law School in 1981 and a

Bachelor of Arts degree, Magna cum Laude, from Cornell University in 1978. After

graduation, he practiced law in New York City.

Management Bios

Steve Blank, Senior VP -

CFO & Treasurer

Chief

Financial

Officer,

Senior

Vice

President

and

Treasurer

NuStar

Energy L.P. In this position, he is responsible for corporate finance,

external reporting, accounting, budgeting and forecasting, investor

relations, risk management, tax, treasury and credit.

Before that, Steve held a variety of positions with Ultramar Diamond

Shamrock and Valero Energy in New York, London and San Antonio,

including Director, Planning and Development (1980-83); Assistant

Treasurer –

Corporate Finance (1983-90); Vice President of Investor

Relations

(1991-95);

Vice

President

–

Information

Technology

(1996);

and

Vice

President

–

Finance

and

Treasurer

(1996-01).

Before joining Ultramar Diamond Shamrock in 1980, Steve worked for

two years with National Westminster Bank in New York.

Steve received a BA in History from the State of University of New York in

1976. He went on to obtain a Master’s in International Affairs, with a

specialization in Business, from Columbia University in 1978.

Management Bios

Rick Bluntzer, Senior VP -

Operations

Rick Bluntzer, Senior Vice President of Operations oversees NuStar Energy

L.P.’s extensive pipeline, terminal, international and asphalt refining

operations. Additionally he oversees NuStar’s engineering, information

systems (operations) and procurement organizations.

Rick began his career with Valero Refining Company in 1976, serving in

various operating and management systems until 1979, when he became a

part of Valero’s refinery acquisition team.

Rick joined the Valero L.P. organization after the Valero/UDS merger and

held various senior operating and management positions, contributing to

the success and transition of today’s NuStar organization.

Management Bios

Brad

Barron,

Senior

General

Counsel

Brad

Barron

serves

Senior

Vice

President

and

General

Counsel

NuStar

Energy L.P. and NuStar

GP Holdings, LLC, both of which are headquartered

in San Antonio, TX. As such, he provides legal counsel on all major

transactions, assures compliance with securities laws, provides legal

counsel to the boards of directors and principal officers, manages real

estate and right-of-way issues, and oversees health, safety and

environmental compliance.

Prior to joining the company, Mr. Barron was with Valero Energy

Corporation. Mr. Barron began his legal career with Vinson & Elkins LLP

and continued in private practice until he joined Valero in 2001.

A committed volunteer, Mr. Barron is also active in the San Antonio

community. He serves on the boards of directors of the Witte Museum,

Alamo Bowl and Family Service Association, and he previously volunteered

board

member

the

Boys

and

Girls

Club

San

Antonio.

also

serves on the Texas Tech Foundation Board.

Mr.

Barron

holds

B.B.A.

from

Texas

Tech

University

and

J.D.

from

the

University of Texas School of Law. In addition, Mr. Barron holds a M.L.A.

from St. John’s College.

Management Bios

Paul

Brattlof,

Senior

Supply

and

Trading

Paul Brattlof

leads NuStar

Energy L.P.’s Marketing, Supply and

Trading organization, which includes products trading, crude supply &

trading, heavy fuels trading bunker marketing and asphalt marketing.

Under

Mr.

Brattlof’s

leadership,

this

organization

capitalizes

opportunities to optimize the use and profitability of the company’s

worldwide

portfolio

assets,

manages

risk

NuStar

diversifies

its

business, and enhances the company’s competitive position when

pursuing acquisitions.

Mr. Brattlof

has more than two decades of experience in cash

markets, futures markets and derivatives trading. Previously, he

served as Vice President of Trading for Valero Energy Corporation,

where he worked for 10 years. Prior to that, he spent 11 years with

Kerr-McGee Refining and two years with Mieco, a Long Beach-based

trading company. A graduate of Rice University, Mr. Brattlof

holds a

Bachelor of Arts degree in Managerial Studies.

Management Bios

Mike Hoeltzel, Senior VP -

Corporate Development

Senior Vice President of Corporate Development for NuStar

Energy L.P.

Joined NuStar

in February 2007 with 30 years refinery experience.

Valero Energy's Corporate Development Department from 2000 to

2007.

Primary

responsibility

was

valuation

refinery

acquisitions

during

this

period

growth

from

refineries.

Also

supported

growth

Valero

L.P.

during

2002-2006

when

M&A

opportunities

for

both companies

were developed in a common department.

Worked in

CITGO's Corpus Christi refinery from 1991-2000 in various Project

Management, Planning & Economics, and Strategic Planning positions.

Worked in Kerr-McKee's Corpus Christi refinery from 1977-1991 in Project

Management and Planning & Economics positions.

Worked

for

Exxon

Oil

Production

from

1971-1973

and

Dupont

from

1973-

1977,

project engineering assignments with both companies.

Graduated from Oklahoma State University in 1971 with BS and MS

degrees

Mechanical

Engineering.

Also

received

MBA

from

Corpus Christi

State University (now Texas A&M Corpus Christi) in 1983

Management Bios

Danny

Oliver,

Senior

Marketing

and

Business

Development

Danny Oliver, Senior Vice President of Marketing & Business Development

for NuStar

Energy L.P., oversees the company’s commercial activities for its

pipelines

and

terminals

business.

Previously,

served

Vice

President

Product

Supply

Trading

for

NuStar

where

was

instrumental

building

the company’s successful trading operations from the ground up. He brings

nearly

years

industry

experience

–

the

majority

which

was

spent

trading energy commodities.

Prior to joining NuStar

in 2007, Mr. Oliver spent 10 years at Valero Energy

holding management positions in Product Supply & Trading where he helped

to build a world-class refined product trading organization and played a key

role in the company’s aggressive acquisition of refinery and logistics assets.

previously

worked

Enron

Corp.

the

International

Trading

division

where he was responsible for the company’s worldwide MTBE and Methanol

trading activities, and also held several positions at Kerr-McGee Refining &

Marketing

products

scheduling

and

accounting,

with

emphasis

reporting and analyzing trading activities.

Mr. Oliver graduated from Texas State University with a B.B.A. in Accounting.

Committed to the community in which he works and lives, Mr. Oliver

currently serves on the boards of directors of San Antonio Sports and the

Harmony Ridge Association. He is also actively involved with his church and

the United Way of Bexar County.

Management Bios

Kyle Oppliger, VP GM -

Operations

Kyle Oppliger

serves as the Vice President and General Manager of the

NuStar

Gulf Coast region. As such, he manages all aspects of the region’s

operations, maintenance, capital projects, safety and environmental

compliance, quality assurance and security initiatives for NuStar

terminal

assets in Texas, Louisiana, Alabama, Georgia and Florida. He brings over 15

years of experience in refining and terminal operations.

Prior to joining NuStar

in 2006, Mr. Oppliger

spent 10 years at Valero Energy

holding leadership roles in operations, planning and economics and laboratory

departments. He has played a key role in the aggressive integration and

development of acquired assets in NuStar’s

Gulf Coast region. He previously

worked for Phibro

and Basis refining companies, and prior to working in the

refining industry, Mr. Oppliger

worked as a chemist in research and

development.

As a committed volunteer, Mr. Oppliger

has been active in communities in

which NuStar

does business, including United Way organizations throughout

the Gulf region. Additionally he has been active in youth mentoring programs,

Big Brothers & Big Sisters and Boy Scouts of America.

Mr.

Oppliger

received

his

undergraduate

degree

Chemistry

from

Sam

Houston State University and his Master’s degree in Business from University

of Houston.

Reconciliation of Non-GAAP Financial

Information: EBITDA

(Unaudited, Dollars in Thousands)

The following is a reconciliation of net income to EBITDA:

2002

2003

2004

2005

2006

2007

2008

2009

Net income

55,143

69,593

78,418

107,675

149,906

150,298

254,018

224,875

Plus interest expense, net

4,880

15,860

20,950

41,388

66,266

76,516

90,818

79,384

Plus income tax expense

395

4,713

5,861

11,448

11,006

10,531

Plus depreciation and amortization expense

16,440

26,267

33,149

64,895

100,266

114,293

135,709

145,743

EBITDA

76,858

111,720

132,517

218,671

322,299

352,555

491,551

460,533

Note: 2005 and 2006 EBITDA are from continuing operations.

Projected net income range

Plus projected interest expense range

Plus projected income tax expense range

Plus projected depreciation and

amortization expense range

Projected EBITDA range

Less year ended December 31, 2009

EBITDA (a)

Projected incremental EBITDA range

(a) As filed in NuStar Energy L.P.'s Current Report on Form 8-K filed January 29, 2010.

Year Ended

December 31, 2010

Year Ended December 31,

NuStar

Energy

L.P.

utilizes

EBITDA,

which

not

defined

United

States

generally

accepted

accounting

principles.

Management

uses

this

financial

measure

because

widely

accepted

financial

indicator

used

investors

compare

partnership

performance.

addition,

management

believes

that

this

measure

provides

investors

enhanced

perspective

the

operating

performance

the

partnership's

assets

and

the

cash

that

the

business

generating.

EBITDA

not

intended

represent

cash

flows

for

the

period

alternative

net

income.

EBITDA

should

not

considered

isolation

or as a substitute for a measure of performance prepared in accordance with United States generally accepted accounting principles.

The following is a reconciliation of the projected net income to projected EBITDA and projected incremental EBITDA for the year ended December 31, 2010:

$ 19,467 - 39,467

77,000 - 78,000

$ 236,000 - 253,000

14,000 - 15,000

153,000 - 154,000

$ 480,000 - 500,000

(460,533)

Reconciliation of Non-GAAP Financial

Information: EBITDA (continued)

(Unaudited, Dollars in Thousands)

Total Internal

Growth Program

Projected annual operating income range

$ 30,000 - 33,000

Plus projected annual depreciation and

amortization expense range

5,000 - 7,000

Projected annual adjusted EBITDA range

$ 35,000 - 40,000

The following is a reconciliation of projected annual operating income to projected annual adjusted EBITDA related to our internal growth program:

EBITDA

the

following

reconciliation

relates

our

reportable

segments

portion

reportable

segment.

not

allocate

general

and

administrative

expenses

our

reportable

segments

because

those

expenses

relate

primarily

the

overall

management

the

entity

level.

Therefore,

EBITDA

reflected

the

following

reconciliation

excludes

any

allocation

general

and

administrative

expenses

consistent

with

our

policy

for

determining

segmental

operating

income,

the

most

directly

comparable

GAAP

measure.

EBITDA

should

not

considered

isolation

substitute

for

measure

of performance prepared in accordance with GAAP.

Reconciliation of Non-GAAP Financial

Information: Storage Segment

(Unaudited, Dollars in Thousands)

The following is a reconciliation of operating income to EBITDA for the Storage Segment:

2006

2007

2008

2009

Operating income

108,486

114,635

141,079

171,245

Plus depreciation and amortization expense

53,121

62,317

66,706

70,888

EBITDA

161,607

176,952

207,785

242,133

Projected incremental operating income range

$ 8,000 - 11,000

Plus projected incremental depreciation and

amortization expense range

6,000 - 7,000

Projected incremental adjusted EBITDA range

$ 14,000 - 18,000

Projected incremental operating income range

$ 26,000 - 33,000

Plus projected incremental depreciation and

amortization expense range

4,000 - 7,000

Projected incremental adjusted EBITDA range

$ 30,000 - 40,000

The

following

reconciliation

projected

incremental

operating

income

projected

incremental

adjusted

EBITDA

our

internal

growth

program for the year ended December 31, 2011 comparred to the year ended December 31, 2010:

Storage

Segment

EBITDA

the

following

reconciliations

relate

our

reportable

segments

portion

reportable

segment.

not

allocate

general

and

administrative

expenses

our

reportable

segments

because

those

expenses

relate

primarily

the

overall

management

the

entity

level.

Therefore,

EBITDA

reflected

the

following

reconciliations

excludes

any

allocation

general

and

administrative

expenses

consistent

with

our

policy

for

determining

segmental

operating

income,

the

most

directly

comparable

GAAP

measure.

EBITDA

should

not

considered

isolation

substitute

for

measure

of performance prepared in accordance with GAAP.

Year Ended December 31,

The following is a reconciliation of projected incremental operating income to projected incremental adjusted EBITDA for the year ended December 31, 2010:

Storage

Segment

Reconciliation of Non-GAAP Financial

Information: Transportation Segment

(Unaudited, Dollars in Thousands)

The following is a reconciliation of operating income to EBITDA for the Transportation Segment:

2006

2007

2008

2009

Operating income

122,714

126,508

135,086

139,869

Plus depreciation and amortization expense

47,145

49,946

50,749

50,528

EBITDA

169,859

176,454

185,835

190,397

Projected incremental operating income range

$ 5,000 - 9,000

Plus projected incremental depreciation and

amortization expense range

0 - 1,000

Projected incremental adjusted EBITDA range

$ 5,000 - 10,000

Projected incremental operating income range

$ 1,000 - 4,000

Plus projected incremental depreciation and

amortization expense range

0 - 1,000

Projected incremental adjusted EBITDA range

$ 1,000 - 5,000

The

following

reconciliation

projected

incremental

operating

income

projected

incremental

adjusted

EBITDA

our

internal

growth

program for the year ended December 31, 2011 comparred to the year ended December 31, 2010:

Transportation

Segment

EBITDA

the

following

reconciliations

relate

our

reportable

segments

portion

reportable

segment.

not

allocate

general

and

administrative

expenses

our

reportable

segments

because

those

expenses

relate

primarily

the

overall

management

the

entity

level.

Therefore,

EBITDA

reflected

the

following

reconciliations

excludes

any

allocation

general

and

administrative

expenses

consistent

with

our

policy

for

determining

segmental

operating

income,

the

most

directly

comparable

GAAP

measure.

EBITDA

should

not

considered

isolation

substitute

for

measure

of performance prepared in accordance with GAAP.

Transportation

Segment

Year Ended December 31,

The following is a reconciliation of projected incremental operating income to projected incremental adjusted EBITDA for the year ended December 31, 2010:

Reconciliation of Non-GAAP Financial

Information: Internal Growth Program

(Unaudited, Dollars in Thousands)

St. James, LA

Terminal

Expansion Phase 1

St. James, LA

Terminal

Expansion

Phases 1 & 2

St. Eustatius

Distillate Project

Jacksonville

Storage Expansion

Projected annual operating income range

$ 11,000 - 20,000

$ 26,000 - 34,000

$ 4,000 - 8,000

$ 4,500 - 9,000

Plus projected annual depreciation and

amortization expense range

4,000 - 5,000

9,000 - 11,000

1,000 - 2,000

500 - 1,000

Projected annual adjusted EBITDA range

$ 15,000 - 25,000

$ 35,000 - 45,000

$ 5,000 - 10,000

Denver Terminal

Expansion

Linden Fuel Oil

Conversion

Selby Truck Rack

Expansion

South Texas Valley

System Ethanol

Projected annual operating income range

$ 500 - 4,000

$ 900 - 2,500

$ 2,900 - 4,500

$ 1,900 - 3,500

Plus projected annual depreciation and

amortization expense range

500 - 1,000

100 - 500

Projected annual adjusted EBITDA range

$ 1,000 - 5,000

$ 1,000 - 3,000

$ 3,000 - 5,000

$ 2,000 - 4,000

Clawson to McKee

Pipeline Expansion

Projected annual operating income range

$ 400 - 800

Plus projected annual depreciation and

amortization expense range

100 - 200

Projected annual adjusted EBITDA range

$ 500 - 1,000

The

following

reconciliation

projected

annual

operating

income

projected

annual

adjusted

EBITDA

for

project

our

transportation

segment

related to our internal growth program:

EBITDA

the

following

reconciliations

relate

our

reportable

segments

portion

reportable

segment.

not

allocate

general

and

administrative

expenses

our

reportable

segments

because

those

expenses

relate

primarily

the

overall

management

the

entity

level.

Therefore,

EBITDA

reflected

the

following

reconciliations

excludes

any

allocation

general

and

administrative

expenses

consistent

with

our

policy

for

determining

segmental

operating

income,

the

most

directly

comparable

GAAP

measure.

EBITDA

should

not

considered

isolation

substitute

for

measure

performance

prepared

in accordance with GAAP.

The

following

reconciliation

projected

annual

operating

income

projected

annual

adjusted

EBITDA

for

certain

projects

our

storage

segment

related to our internal growth program:

Reconciliation of Non-GAAP Financial

Information: Asphalt & Fuels Marketing Segment

(Unaudited, Dollars in Thousands)

The following are reconciliations of operating income to EBITDA for the Asphalt and Fuels Marketing Segment:

Fuels Marketing

Operations

Asphalt Operations

Asphalt and

Fuels Marketing

Segment

Operating income

9,919

50,710

60,629

Plus depreciation and amortization expense

19,463

EBITDA

9,919

70,173

80,092

Fuels Marketing

Operations

Asphalt Operations

Asphalt and

Fuels Marketing

Segment

Operating income

36,239

76,267

112,506

Plus depreciation and amortization expense

552

14,182

14,734

EBITDA

36,791

90,449

127,240

Year Ended

December 31, 2007

Year Ended

December 31, 2006

Operating income

21,111

26,915

Plus depreciation and amortization expense

423

EBITDA

21,534

26,915

Fuels Marketing

Operations

Asphalt Operations

Asphalt and

Fuels Marketing

Segment

Projected incremental operating income range

$ 25,000 - 35,000

Plus projected incremental depreciation and

amortization expense range

Projected incremental adjusted EBITDA range

$ 25,000 - 35,000

Year Ended December 31, 2010 Compared

to the Year Ended December 31, 2009

Year Ended December 31, 2009

Year Ended December 31, 2008

EBITDA

the

following

reconciliations

relate

our

reportable

segments

portion

reportable

segment.

not

allocate

general

and

administrative

expenses

our

reportable

segments

because

those

expenses

relate

primarily

the

overall

management

the

entity

level.

Therefore,

EBITDA

reflected

the

following

reconciliations

excludes

any

allocation

general

and

administrative

expenses

consistent

with

our

policy

for

determining

segmental

operating

income,

the

most

directly

comparable GAAP measure. EBITDA should not be considered in isolation or as a substitute for a measure of performance prepared in accordance with GAAP.

The following is a reconciliation of projected incremental operating income to projected incremental adjusted EBITDA for the asphalt and fuels marketing segment:

The

following

are

reconciliations

operating

income

EBITDA

for

the

Asphalt

and

Fuels

Marketing

Segment.

had

asphalt

operations

prior

2008,

the

following amounts relate solely to our Fuels Marketing Operations: