NuStar first quarter profit off 7.9 percent; NuStar GP net up 8.5 percent

SAN ANTONIO, Texas - NuStar Energy LP's (NS) first-quarter profit fell a greater-than-expected 7.9 percent on weak asphalt demand, while NuStar GP Holdings LLC (NSH), which holds a general-partner and limited-partner interest in NuStar Energy, reported 8.5 percent higher earnings.

President and Chief Executive Curt Anastasio said weak asphalt demand and high crude oil costs pressuring the company's asphalt business and San Antonio refinery more than offset improved results from the company's crude-oil trading operations.

NuStar Energy reported a profit of $26.3 million, down from $28.5 million a year earlier.

On a per-unit basis attributable to limited partners, the company earned 23 cents, compared with 30 cents a year ago. Excluding early termination costs, earnings reached 40 cents in the year-earlier quarter.

Revenue increased 41 percent to $1.74 billion.

Analysts polled by Thomson Reuters expected a 29-cent per-share profit on $1.25 billion of revenue.

NuStar GP reported a profit of $11 million, or 26 cents a unit, up from $10.2 million, or 24 cents a unit, a year earlier. Adjusted earnings reached 27 cents a share a year earlier. Analysts polled by Thomson Reuters were looking for 30 cents in the latest quarter.

NuStar Energy L.P. reports higher than anticipated third Quarter 2011 earnings

SAN ANTONIO, Texas - NuStar Energy L.P. (NYSE: NS) on  Oct. 28 announced its third quarter net income applicable to limited partners was $59.8 million, or $0.92 per unit, compared to $58.4 million, or $0.90 per unit, earned in the third quarter of 2010.

For the nine months ended Sept. 30, net income applicable to limited partners was $160.9 million, or $2.49 per unit, compared to $159.0 million, or $2.55 per unit, for the nine months ended Sept. 30, 2010.

Earnings before interest, taxes, depreciation and amortization (EBITDA) were $138.8 million for the third quarter of 2011 compared to $131.0 million for the third quarter of 2010. For the nine months ended Sept. 30, EBITDA was $391.7 million, higher than the $369.2 million for the nine months ended Sept. 30, 2010.

Distributable cash flow available to limited partners for the third quarter was $80.3 million, or $1.24 per unit, compared to 2010 third quarter distributable cash flow of $84.0 million, or $1.30 per unit. For the nine months ended Sept. 30, distributable cash flow available to limited partners was $244.8 million, or $3.79 per unit, compared to $214.0 million, or $3.40 per unit for the nine months ended Sept. 30, 2010.

NuStar also declared a distribution of $1.095 per unit, which would equate to $4.38 per unit on an annual basis. The third quarter 2011 distribution will be paid on Nov. 14, to holders of record as of Nov. 8. Distributable cash flow available to limited partners covers the distribution to the limited partners by 1.13 times for the third quarter of 2011.

NuStar, Valero to build South Texas pipeline system serving Eagle Ford

SAN ANTONIO, Texas - NuStar Energy L.P. announced on Sept. 7 that it has entered into an agreement with Valero Energy Corp. in which NuStar will modify existing sections within its South Texas pipeline system and build new sections to transport Eagle Ford and other crude oils.

The projects will help Valero improve transportation of crude and condensate to supply its refineries in Three Rivers and Corpus Christi, Texas.

NuStar will reverse an eight-inch refined products pipeline that currently runs from Corpus Christi to Three Rivers and will convert it to crude oil service. The pipeline will provide capacity to transport Eagle Ford crude and condensate to Valero's Corpus Christi refinery. The line is expected to be in full service by the end of September 2011.

NuStar will also build 55 miles of new 12-inch pipeline that will connect to existing pipeline segments to move crude oil from Corpus Christi to Valero's Three Rivers refinery. This system is expected to be completed and in service by the second quarter of 2012.

NuStar gets first-quarter earnings lift

SAN ANTONIO, Texas - NuStar Energy LP (NYSE: NS) concluded the first quarter with improved results in all of the company’s business segments.

NuStar reported first-quarter net income applicable to limited partners of $19.4 million, or 30 cents per unit, on revenues of $1.23 billion for the quarter ended March 31, 2011.

This compares to net income applicable to limited partners of $11.5 million, or 19 cents per unit, on revenues of $945.5 million for the same period a year ago.

NuStar has declared a first-quarter 2011 distribution of $1.075 per unit, which will be paid on May 13.

NuStar to reactivate Eagle Ford oil pipeline as part of deal with Koch

SAN ANTIONIO, Texas - San Antonio-based NuStar Energy LP will reactivate an idled 60-mile pipeline and lease it to Wichita, Kan.-based Koch Pipeline Co. LP to convey oil from the Eagle Ford shale formation to Corpus Christi refineries.

The reactivation is part of an already-announced plan by Koch to transport more oil from the Eagle Ford shale to the Koch Flint Hills refinery at Corpus Christi, Texas.

The Pettus South Pipeline extends from Pettus, in Goliad County, to Corpus Christi.

NuStar Logistics, a NuStar Energy subsidiary, will operate the pipeline. Koch Pipeline will lease the capacity and combine it with its existing gathering systems to move increasing crude oil production in the Eagle Ford shale that crosses South Texas.

NuStar Energy and Koch Pipeline expect the project to be completed and in service in the second quarter of 2011.

NuStar reports decline in first quarter 2009, income, announces distribution

SAN ANTONIO. Texas - NuStar Energy L.P. (NYSE: NS) on April 30 announced net income applicable to limited partners of $31.6 million, or $0.58 per unit, for the first quarter of 2009, compared to $49.6 million, or $1.01 per unit, earned in the first quarter of 2008.
"However, a year-over-year quarterly comparison is largely meaningless as NuStar's business changed dramatically with its acquisition of the former CITGO asphalt refining and marketing operations near the end of the first quarter of 2008," said Curt Anastasio, CEO and president of NuStar Energy L.P. and NuStar GP Holdings, LLC. "Because of the inherent seasonality of the asphalt business, our first quarter 2009 results are burdened with all of the additional cost and expense of that operation while the vast majority of the financial benefit will be generated during the second and third quarters. The important takeaway for our unitholders is that the financial results of our transportation and storage segments during the first quarter of 2009 were actually better than last year. And, for the full year 2009, the asphalt operations are expected to provide an even bigger boost to earnings and cash flow than they did in 2008.
Included in NuStar Energy L.P.'s earnings results for the first quarter of 2009 is a $4.7 million, or $0.08 per unit, gain, net of tax, related to property insurance proceeds received due to damage incurred from Hurricane Ike that occurred at the Texas City, Texas, terminal in the third quarter of 2008. Excluding the effect of the Hurricane and other items, first quarter 2009 adjusted earnings would have been $25.8 million, or $0.47 per unit.
NuStar Energy L.P. also announced that its board has declared a distribution of $1.0575 per unit, which would equate to $4.23 per unit on an annual basis. The quarterly distribution represents an increase of $0.0725 per unit, or 7.4 percent, over the $0.985 distribution for the first quarter of 2008, but is unchanged from the fourth quarter of 2008. The first quarter 2009 distribution will be paid on May 15 to holders of record on May 8.
Distributable cash flow available to limited partners for the first quarter of 2009 was $69.4 million, or $1.28 per unit, compared to $72.0 million, or $1.46 per unit, for the first quarter of 2008. This was the third best quarterly distributable cash flow performance since NuStar Energy L.P. went public in 2001.