Delaware | 001-32940 | 85-0470977 |
(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 August 2, 2016. |
NuStar GP Holdings, LLC | |||
Date: August 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 99.1 | Press Release dated August 2, 2016. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Statement of Income Data: | |||||||||||||||
Equity in earnings of NuStar Energy L.P. | $ | 16,280 | $ | 16,568 | $ | 33,295 | $ | 44,090 | |||||||
General and administrative expenses | (841 | ) | (921 | ) | (1,673 | ) | (1,872 | ) | |||||||
Other income, net | — | 77 | 613 | 539 | |||||||||||
Interest expense, net | (267 | ) | (214 | ) | (513 | ) | (427 | ) | |||||||
Income before income tax (expense) benefit | 15,172 | 15,510 | 31,722 | 42,330 | |||||||||||
Income tax (expense) benefit | (99 | ) | 17 | 27 | 2 | ||||||||||
Net income | $ | 15,073 | $ | 15,527 | $ | 31,749 | $ | 42,332 | |||||||
Basic and diluted net income per unit | $ | 0.35 | $ | 0.37 | $ | 0.74 | $ | 0.99 | |||||||
Equity in Earnings of NuStar Energy L.P.: | |||||||||||||||
General partner interest | $ | 834 | $ | 871 | $ | 1,766 | $ | 3,213 | |||||||
General partner incentive distribution | 10,805 | 10,805 | 21,610 | 21,610 | |||||||||||
General partner’s interest in earnings and incentive distributions of NuStar Energy L.P. | 11,639 | 11,676 | 23,376 | 24,823 | |||||||||||
Limited partner interest in earnings of NuStar Energy L.P. | 5,362 | 5,613 | 11,361 | 20,709 | |||||||||||
Amortization of step-up in basis related to NuStar Energy L.P.’s assets and liabilities | (721 | ) | (721 | ) | (1,442 | ) | (1,442 | ) | |||||||
Equity in earnings of NuStar Energy L.P. | $ | 16,280 | $ | 16,568 | $ | 33,295 | $ | 44,090 | |||||||
Weighted average number of common units outstanding | 42,931,059 | 42,913,771 | 42,930,804 | 42,913,526 | |||||||||||
Cash Flow Data: | |||||||||||||||
Net cash provided by operating activities | $ | 12,967 | $ | 17,943 | $ | 27,350 | $ | 40,338 | |||||||
Net cash provided by investing activities | $ | 7,670 | $ | 4,553 | $ | 15,766 | $ | 3,931 | |||||||
Net cash used in financing activities | $ | (23,438 | ) | $ | (23,388 | ) | $ | (42,835 | ) | $ | (46,776 | ) | |||
Distributable Cash Flow (Note 1): | |||||||||||||||
Cash distributions from NuStar Energy L.P. associated with: | |||||||||||||||
General partner interest | $ | 1,961 | $ | 1,961 | $ | 3,922 | $ | 3,922 | |||||||
General partner incentive distribution | 10,805 | 10,805 | 21,610 | 21,610 | |||||||||||
Limited partner interest – common units | 11,185 | 11,212 | 22,329 | 22,528 | |||||||||||
Total cash distributions expected from NuStar Energy L.P. | 23,951 | 23,978 | 47,861 | 48,060 | |||||||||||
Adjustments: | |||||||||||||||
General and administrative expenses | (841 | ) | (921 | ) | (1,673 | ) | (1,872 | ) | |||||||
Income tax (expense) benefit | (99 | ) | 17 | 27 | 2 | ||||||||||
Interest expense, net | (267 | ) | (214 | ) | (513 | ) | (427 | ) | |||||||
Unit-based compensation (Note 2) | 131 | — | 245 | — | |||||||||||
DCF | $ | 22,875 | $ | 22,860 | $ | 45,947 | $ | 45,763 | |||||||
Total distributions to unitholders | $ | 23,398 | $ | 23,388 | $ | 46,795 | $ | 46,776 |
(1) | NuStar GP Holdings, LLC utilizes distributable cash flow (DCF) as a financial measure, although it is not defined in U.S. generally accepted accounting principles. Management believes DCF provides useful information to investors and other external users of our financial information because (i) DCF provides additional information about 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 measure being utilized by management and our board of directors when making financial and planning decisions. Our board of directors and management use DCF when assessing our ability to fund distributions and our ability to service debt. DCF is a widely accepted financial indicator used by our industry’s investment community to compare company performance. DCF is used by our industry’s investment community, in part, because the value of our company’s units is partially based on its yield, and its yield is based on the cash distributions a company can pay its unitholders. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income | $ | 15,073 | $ | 15,527 | $ | 31,749 | $ | 42,332 | |||||||
Less equity in earnings of NuStar Energy L.P. | (16,280 | ) | (16,568 | ) | (33,295 | ) | (44,090 | ) | |||||||
Plus cash distributions expected from NuStar Energy L.P. | 23,951 | 23,978 | 47,861 | 48,060 | |||||||||||
Unit-based compensation items | 131 | (77 | ) | (368 | ) | (539 | ) | ||||||||
DCF | 22,875 | 22,860 | 45,947 | 45,763 | |||||||||||
Less cash distributions expected from NuStar Energy L.P. | (23,951 | ) | (23,978 | ) | (47,861 | ) | (48,060 | ) | |||||||
Distributions of equity in earnings of NuStar Energy L.P. | 16,280 | 20,122 | 33,295 | 44,090 | |||||||||||
Changes in current assets and liabilities | (2,422 | ) | (1,136 | ) | (4,413 | ) | (1,637 | ) | |||||||
Changes in noncurrent assets and liabilities and other items (a) | 185 | 75 | 382 | 182 | |||||||||||
Net cash provided by operating activities | $ | 12,967 | $ | 17,943 | $ | 27,350 | $ | 40,338 |
(a) | Other items consist of adjustments for (i) the amortization of deferred debt costs, (ii) the provision/benefit for deferred income taxes and (iii) payments made in connection with distribution equivalent rights. |
(2) | 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. These awards include distribution equivalent rights (DERs). Payments made in connection with DERs are deducted from DCF. |