NuStar Energy L.P. Declares Fourth Quarter 2023 Common Unit Distribution and Series A, Series B and Series C Preferred Units Distributions

Rhea-AI Summary

NuStar Energy L.P. (NS) declares a fourth quarter 2023 common unit distribution of $0.40 per unit and preferred unit distributions for Series A, B, and C. The company is an independent liquids terminal and pipeline operator with operations in the United States and Mexico, boasting approximately 9,500 miles of pipeline and 63 terminal and storage facilities. The release also addresses federal income tax withholding for foreign investors.

Insights

Financial Analyst

The declaration of a quarterly common unit distribution is a significant event for current and potential investors, as it directly affects shareholder returns. The announced distribution of $0.40 per unit is a critical figure used to calculate the yield of the investment, which is a fundamental aspect when assessing the attractiveness of NuStar Energy L.P. compared to other investment opportunities. Investors will often look at this in the context of the company's historical distribution levels and industry benchmarks to determine if the company is maintaining, increasing, or decreasing its shareholder payouts.

Furthermore, the announcement of distributions for Series A, B and C preferred units indicates a structured approach to fulfilling obligations to different classes of equity, which could be indicative of the company's financial health and its ability to manage cash flows effectively. The specific amounts, $0.77533, $0.70515 and $0.78246 per unit respectively, also reflect the contractual preferences associated with these securities. It's important for investors to understand that preferred units typically have priority over common units in terms of distributions, which can be a safer, albeit potentially less lucrative, investment.

Tax Specialist

For international investors, the tax implications of the distributions are of paramount importance. The statement that 100% of the distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate signifies a substantial tax burden that must be accounted for when calculating net returns. This withholding is a mechanism to ensure that the United States collects the appropriate taxes on income generated within its borders by foreign entities.

It's also noteworthy that nominees are designated as withholding agents, which implies that the administrative responsibility for tax withholding falls on intermediaries, such as brokers or banks, that hold the units on behalf of foreign investors. This can affect the ease of investment for foreign parties and might influence their decision to invest in NuStar Energy L.P.

Energy Sector Analyst

NuStar Energy L.P.'s role as an independent liquids terminal and pipeline operator is a critical piece of information for understanding the context in which this distribution is taking place. The company's extensive infrastructure, boasting approximately 9,500 miles of pipeline and 63 terminal and storage facilities, is a testament to its scale and operational capacity. This infrastructure underpins the company's ability to generate revenue and, by extension, pay distributions to unit holders.

The focus on not just crude oil, but also refined products, renewable fuels, ammonia and specialty liquids, suggests a diversified product portfolio that may provide some resilience against sector-specific downturns. Additionally, the mention of operations in the United States and Mexico expands the geographical diversification, which can be a buffer against region-specific economic or regulatory risks.

SAN ANTONIO--(BUSINESS WIRE)-- NuStar Energy L.P. (NYSE: NS) today announced that its Board of Directors has declared a fourth quarter 2023 common unit distribution of $0.40 per unit. The fourth quarter common unit distribution will be paid on February 13, 2024 to holders of record as of February 7, 2024.

NuStar Energy L.P.’s Board of Directors also declared a fourth quarter 2023 Series A preferred unit distribution of $0.77533 per unit, a Series B preferred unit distribution of $0.70515 per unit and a Series C preferred unit distribution of $0.78246 per unit. The preferred unit distributions will be paid on March 15, 2024 to holders of record as of March 1, 2024.

NuStar Energy L.P., through its subsidiaries (collectively, “NuStar” or the “Partnership”), is an independent liquids terminal and pipeline operator. NuStar currently has approximately 9,500 miles of pipeline and 63 terminal and storage facilities that store and distribute crude oil, refined products, renewable fuels, ammonia and specialty liquids. The Partnership’s combined system has approximately 49 million barrels of storage capacity, and NuStar has operations in the United States and Mexico. For more information, visit NuStar Energy L.P.’s website at www.nustarenergy.com and its Sustainability page at https://sustainability.nustarenergy.com/.

This release serves as qualified notice to nominees under Treasury Regulation Sections 1.1446-4(b)(4) and (d) and 1.1446(f). Please note that 100% of NuStar Energy L.P.’s distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. 100% of the distribution is in excess of cumulative net income for purposes of Treasury Regulation Section 1.1446(f)-4(c)(2)(iii). Accordingly, all of NuStar Energy L.P.’s distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate for individuals and corporations, as applicable. Nominees, and not NuStar Energy L.P., are treated as the withholding agents responsible for withholding on the distributions received by them on behalf of foreign investors.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240125948300/en/

Media: Mary Rose Brown

210-918-2314

maryrose.brown@nustarenergy.com

Investors: Pam Schmidt

210-918-2854

pam.schmidt@nustarenergy.com

Source: NuStar Energy L.P.

FAQ

What is the common unit distribution declared by NuStar Energy L.P. for the fourth quarter of 2023?

NuStar Energy L.P. has declared a common unit distribution of $0.40 per unit for the fourth quarter of 2023.

When will the fourth quarter common unit distribution be paid to holders of record?

The fourth quarter common unit distribution will be paid on February 13, 2024, to holders of record as of February 7, 2024.

What are the declared distributions for the Series A, B, and C preferred units for the fourth quarter of 2023?

The Series A preferred unit distribution is $0.77533 per unit, the Series B preferred unit distribution is $0.70515 per unit, and the Series C preferred unit distribution is $0.78246 per unit.

How many miles of pipeline does NuStar Energy L.P. currently have?

NuStar Energy L.P. currently has approximately 9,500 miles of pipeline.

Where does NuStar Energy L.P. have operations?

NuStar Energy L.P. has operations in the United States and Mexico.

What is the total storage capacity of NuStar Energy L.P.'s combined system?

The Partnership's combined system has approximately 49 million barrels of storage capacity.

What is the website for more information about NuStar Energy L.P.?

For more information, visit NuStar Energy L.P.'s website at www.nustarenergy.com.

What is the website for NuStar Energy L.P.'s Sustainability page?

Visit NuStar Energy L.P.'s Sustainability page at https://sustainability.nustarenergy.com/.

What is the federal income tax withholding situation for foreign investors of NuStar Energy L.P.?

100% of NuStar Energy L.P.'s distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate for individuals and corporations, as applicable.