NuStar Energy L.P. Reports Solid Fourth Quarter and Full-Year 2023 Earnings Results
- NuStar reported strong financial results for Q4 and full-year 2023.
- Net income for Q4 was $70 million and $274 million for full-year 2023.
- Adjusted net income was $75 million for Q4 and $233 million for the full year.
- EBITDA for Q4 was $199 million and $735 million for the full year.
- DCF for Q4 was $87 million and $354 million for the full year.
- Positive performance in Pipeline, Storage, and Fuels Marketing segments.
- Expectations for 2024 include net income of $220-$260 million and EBITDA of $720-$780 million.
- None.
Insights
The financial results released by NuStar Energy L.P. showcase a mixed picture. While the net income for the fourth quarter of 2023 has decreased from $92 million to $70 million compared to the same quarter in the previous year, the adjusted net income shows a slight improvement when the gain from insurance proceeds and other non-recurring items are excluded. This indicates that the core business operations may be performing better than the raw numbers suggest.
Furthermore, the year-over-year increase in full-year net income from $223 million to $274 million demonstrates growth in profitability. However, it's critical to note the impact of non-cash charges and the sale of assets on these figures. The adjusted net income provides a clearer picture of the operational performance, standing at $233 million for 2023, slightly below the $250 million of the previous year. This suggests a stable performance but warrants attention to the factors contributing to the slight decline.
The consistent Earnings Per Unit (EPU) of $0.92 after adjustments for both years indicates a steady return to unitholders. The debt-to-EBITDA ratio of 3.85 times, although slightly higher than the industry's ideal benchmark of 3 times or less, is still within a manageable range and reflects a relatively healthy balance sheet.
The distribution coverage ratios above 1.0 for both the quarter and full year suggest that NuStar is generating sufficient cash flow to cover its distributions, which is a positive signal for investors looking for stable income.
NuStar’s performance in the Pipeline and Storage Segments provides insights into the broader energy market trends. The increase in operating income and EBITDA for both segments year-over-year indicates that there is robust demand for refined products and storage facilities. The mention of annual rate escalations linked to the FERC index or PPI suggests that NuStar is effectively leveraging regulatory frameworks and inflationary adjustments to maintain revenue growth.
The decrease in volumes from the Permian Crude System, a key area for oil production, could be a sign of broader industry challenges or company-specific issues. The resolution of these issues and a slight uptick in volumes from the third to the fourth quarter may indicate a potential for recovery in this segment. The solid performance of the Ammonia System and the McKee System, with higher revenues and throughputs, points towards successful operations in specific niches of the market.
Additionally, the growth of the West Coast Renewables Strategy aligns with the industry's shift towards renewable energy sources and could position NuStar favorably in the long term as the energy transition progresses.
The pending merger with Sunoco LP is a significant event that could have substantial implications for NuStar's future operations and financial performance. The merger, expected to close in the second quarter of 2024, will likely result in operational synergies, cost savings and potentially enhanced market positioning. However, it also introduces integration risks and potential regulatory hurdles that need to be navigated carefully.
Investors should closely monitor the progress of this merger as it could affect NuStar's standalone financial expectations for 2024, which forecast net income in the range of $220 to $260 million and EBITDA between $720 to $780 million. These projections are crucial for evaluating the company’s performance potential post-merger.
The decision not to host an earnings call in light of the merger announcement may limit the immediate availability of detailed management insights into the company's performance and outlook, which could impact investor sentiment in the short term.
NuStar reported net income of
Excluding the gain related to the sale of a portion of NuStar’s corporate headquarters in 2023, non-cash charges and insurance proceeds in 2022, as well as the EPU impact from the repurchases of the Series D preferred units in 2023 and 2022, our full-year 2023 adjusted net income was
It is important to note that earnings before interest, taxes, depreciation and amortization (EBITDA) were not impacted by the premium associated with the accelerated repurchase of the Series D preferred units, and we reported EBITDA of
Distributable Cash Flow (DCF) was
Adjusted DCF was
“I am pleased to report that we have delivered another quarter of solid earnings results and made significant progress on many of our strategic initiatives in 2023,” said NuStar Chairman and CEO Brad Barron.
Operations Continue to Perform Well
NuStar’s Pipeline Segment generated operating income of
The Permian Crude System’s fourth quarter of 2023 volumes averaged 528,000 BPD, down compared to the fourth quarter of 2022 but up slightly from the third quarter of 2023.
“As we have said on prior calls, our Permian volumes reflected some producer-specific operational issues and delays in 2023, which were largely resolved over the course of the year,” said Barron.
For full-year 2023, NuStar’s Pipeline Segment generated operating income of
“Our refined products systems, along with our Ammonia System, generated solid, dependable revenue in 2023 as total throughputs were up compared to 2022, reflecting the strength of these assets and our strong position in the markets we serve in the mid-Continent and throughout Texas,” said Barron.
“Our McKee System also performed very well this year, with higher revenues and throughputs versus last year, and almost all our pipeline systems benefitted from annual rate escalations linked to either the FERC index or PPI.”
NuStar’s Storage Segment generated operating income of
For full-year 2023, NuStar’s Storage Segment generated operating income of
Barron also highlighted the strong performance of NuStar’s Fuels Marketing Segment.
“After a near record-breaking 2022, our Fuels Marketing Segment has turned in another strong quarter, generating operating income and EBITDA of
Even with the acceleration of our Series D redemptions in 2023, we ended the fourth quarter of 2023 with a healthy debt-to-EBITDA ratio of 3.85 times and
Positive Outlook for 2024
Although the pending merger with Sunoco LP is expected to close as early as the second quarter of 2024, we want to provide our 2024 financial expectations for NuStar on a stand-alone basis. We expect to generate full-year 2024 net income in the range of
NuStar once again expects to self-fund all of its operational expenses, growth capital and distributions, and continues to target a healthy year-end debt-to-EBITDA ratio below four times.
Conference Call Details
In light of the merger announced on January 22, 2024, NuStar no longer plans to host its previously scheduled earnings call.
About NuStar Energy L.P.
NuStar Energy L.P., through its subsidiaries (collectively, “NuStar” or the “Partnership”), is an independent liquids terminal and pipeline operator. NuStar 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
Cautionary Statement Regarding Forward-Looking Statements
This press release includes forward-looking statements regarding future events and expectations, such as NuStar’s future performance, plans and expenditures. All forward-looking statements are based on NuStar’s beliefs as well as assumptions made by and information currently available to NuStar. These statements reflect NuStar’s current views with respect to future events and are subject to various risks, uncertainties and assumptions. These risks, uncertainties and assumptions are discussed in NuStar Energy L.P.’s 2022 annual report on Form 10-K and subsequent filings with the Securities and Exchange Commission. Actual results may differ materially from those described in the forward-looking statements. Except as required by law, NuStar does not intend, or undertake any obligation, to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.
NuStar Energy L.P. and Subsidiaries Consolidated Financial Information (Unaudited, Thousands of Dollars, Except Unit, Per Unit and Ratio Data) |
|||||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Statement of Income Data: |
|
|
|
|
|
|
|
||||||||
Revenues: |
|
|
|
|
|
|
|
||||||||
Service revenues |
$ |
304,989 |
|
|
$ |
299,497 |
|
|
$ |
1,155,567 |
|
|
$ |
1,120,249 |
|
Product sales |
|
146,697 |
|
|
|
130,463 |
|
|
|
478,620 |
|
|
|
562,974 |
|
Total revenues |
|
451,686 |
|
|
|
429,960 |
|
|
|
1,634,187 |
|
|
|
1,683,223 |
|
Costs and expenses: |
|
|
|
|
|
|
|
||||||||
Costs associated with service revenues: |
|
|
|
|
|
|
|
||||||||
Operating expenses |
|
95,112 |
|
|
|
92,353 |
|
|
|
371,689 |
|
|
|
364,989 |
|
Depreciation and amortization expense |
|
63,183 |
|
|
|
63,195 |
|
|
|
250,982 |
|
|
|
251,878 |
|
Total costs associated with service revenues |
|
158,295 |
|
|
|
155,548 |
|
|
|
622,671 |
|
|
|
616,867 |
|
Costs associated with product sales |
|
125,846 |
|
|
|
108,730 |
|
|
|
407,793 |
|
|
|
486,947 |
|
Impairment loss |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
46,122 |
|
General and administrative expenses |
|
34,418 |
|
|
|
34,460 |
|
|
|
129,846 |
|
|
|
117,116 |
|
Other depreciation and amortization expense |
|
1,056 |
|
|
|
1,776 |
|
|
|
4,728 |
|
|
|
7,358 |
|
Total costs and expenses |
|
319,615 |
|
|
|
300,514 |
|
|
|
1,165,038 |
|
|
|
1,274,410 |
|
Gain on sale of assets |
|
— |
|
|
|
— |
|
|
|
41,075 |
|
|
|
— |
|
Operating income |
|
132,071 |
|
|
|
129,446 |
|
|
|
510,224 |
|
|
|
408,813 |
|
Interest expense, net |
|
(62,698 |
) |
|
|
(55,956 |
) |
|
|
(241,364 |
) |
|
|
(209,009 |
) |
Other income, net |
|
2,917 |
|
|
|
19,024 |
|
|
|
10,215 |
|
|
|
26,182 |
|
Income before income tax expense |
|
72,290 |
|
|
|
92,514 |
|
|
|
279,075 |
|
|
|
225,986 |
|
Income tax expense |
|
1,899 |
|
|
|
911 |
|
|
|
5,412 |
|
|
|
3,239 |
|
Net income |
$ |
70,391 |
|
|
$ |
91,603 |
|
|
$ |
273,663 |
|
|
$ |
222,747 |
|
|
|
|
|
|
|
|
|
||||||||
Basic and diluted net income per common unit |
$ |
0.37 |
|
|
$ |
0.18 |
|
|
$ |
0.72 |
|
|
$ |
0.36 |
|
Basic and diluted weighted-average common units outstanding |
|
126,205,999 |
|
|
|
110,566,272 |
|
|
|
116,851,373 |
|
|
|
110,341,206 |
|
Non-GAAP Data (Note 1): |
|
|
|
|
|
|
|
||||||||
Adjusted net income |
$ |
70,391 |
|
$ |
75,237 |
|
$ |
232,588 |
|
$ |
249,795 |
||||
Adjusted net income per common unit |
$ |
0.37 |
|
$ |
0.34 |
|
$ |
0.92 |
|
$ |
0.92 |
||||
EBITDA |
$ |
199,227 |
|
$ |
213,441 |
|
$ |
776,149 |
|
$ |
694,231 |
||||
Adjusted EBITDA |
$ |
199,227 |
|
$ |
197,075 |
|
$ |
735,074 |
|
$ |
722,423 |
||||
DCF |
$ |
87,337 |
|
$ |
69,937 |
|
$ |
287,061 |
|
$ |
337,482 |
||||
Adjusted DCF |
$ |
87,337 |
|
$ |
89,216 |
|
$ |
353,756 |
|
$ |
356,761 |
||||
Distribution coverage ratio |
1.73x |
|
1.58x |
|
1.51x |
|
1.91x |
||||||||
Adjusted distribution coverage ratio |
1.73x |
|
2.01x |
|
1.86x |
|
2.02x |
||||||||
|
For the Four Quarters Ended December 31, |
||
|
2023 |
|
2022 |
Consolidated Debt Coverage Ratio |
3.85x |
|
3.98x |
NuStar Energy L.P. and Subsidiaries Consolidated Financial Information - Continued (Unaudited, Thousands of Dollars, Except Barrel Data) |
|||||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Pipeline: |
|
|
|
|
|
|
|
||||||||
Crude oil pipelines throughput (barrels/day) |
|
1,299,866 |
|
|
|
1,410,966 |
|
|
|
1,234,051 |
|
|
|
1,319,360 |
|
Refined products and ammonia pipelines throughput (barrels/day) |
|
617,909 |
|
|
|
611,011 |
|
|
|
602,913 |
|
|
|
579,240 |
|
Total throughput (barrels/day) |
|
1,917,775 |
|
|
|
2,021,977 |
|
|
|
1,836,964 |
|
|
|
1,898,600 |
|
|
|
|
|
|
|
|
|
||||||||
Throughput and other revenues |
$ |
228,621 |
|
|
$ |
229,935 |
|
|
$ |
873,869 |
|
|
$ |
828,191 |
|
Operating expenses |
|
54,754 |
|
|
|
53,609 |
|
|
|
214,751 |
|
|
|
210,719 |
|
Depreciation and amortization expense |
|
44,294 |
|
|
|
44,726 |
|
|
|
175,930 |
|
|
|
178,802 |
|
Segment operating income |
$ |
129,573 |
|
|
$ |
131,600 |
|
|
$ |
483,188 |
|
|
$ |
438,670 |
|
Storage: |
|
|
|
|
|
|
|
||||||||
Throughput (barrels/day) |
|
489,206 |
|
|
|
512,504 |
|
|
|
448,331 |
|
|
|
480,129 |
|
|
|
|
|
|
|
|
|
||||||||
Throughput terminal revenues |
$ |
31,473 |
|
|
$ |
26,288 |
|
|
$ |
104,495 |
|
|
$ |
110,591 |
|
Storage terminal revenues |
|
54,056 |
|
|
|
53,165 |
|
|
|
215,104 |
|
|
|
223,958 |
|
Total revenues |
|
85,529 |
|
|
|
79,453 |
|
|
|
319,599 |
|
|
|
334,549 |
|
Operating expenses |
|
40,358 |
|
|
|
38,744 |
|
|
|
156,938 |
|
|
|
154,270 |
|
Depreciation and amortization expense |
|
18,889 |
|
|
|
18,469 |
|
|
|
75,052 |
|
|
|
73,076 |
|
Impairment loss |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
46,122 |
|
Segment operating income |
$ |
26,282 |
|
|
$ |
22,240 |
|
|
$ |
87,609 |
|
|
$ |
61,081 |
|
Fuels Marketing: |
|
|
|
|
|
|
|
||||||||
Product sales |
$ |
137,540 |
|
|
$ |
120,574 |
|
|
$ |
440,725 |
|
|
$ |
520,486 |
|
Cost of goods |
|
125,401 |
|
|
|
107,850 |
|
|
|
405,992 |
|
|
|
484,477 |
|
Gross margin |
|
12,139 |
|
|
|
12,724 |
|
|
|
34,733 |
|
|
|
36,009 |
|
Operating expenses |
|
449 |
|
|
|
882 |
|
|
|
1,807 |
|
|
|
2,473 |
|
Segment operating income |
$ |
11,690 |
|
|
$ |
11,842 |
|
|
$ |
32,926 |
|
|
$ |
33,536 |
|
Consolidation and Intersegment Eliminations: |
|
|
|
|
|
|
|
||||||||
Revenues |
$ |
(4 |
) |
|
$ |
(2 |
) |
|
$ |
(6 |
) |
|
$ |
(3 |
) |
Cost of goods |
|
(4 |
) |
|
|
(2 |
) |
|
|
(6 |
) |
|
|
(3 |
) |
Total |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Consolidated Information: |
|
|
|
|
|
|
|
||||||||
Revenues |
$ |
451,686 |
|
|
$ |
429,960 |
|
|
$ |
1,634,187 |
|
|
$ |
1,683,223 |
|
Costs associated with service revenues: |
|
|
|
|
|
|
|
||||||||
Operating expenses |
|
95,112 |
|
|
|
92,353 |
|
|
|
371,689 |
|
|
|
364,989 |
|
Depreciation and amortization expense |
|
63,183 |
|
|
|
63,195 |
|
|
|
250,982 |
|
|
|
251,878 |
|
Total costs associated with service revenues |
|
158,295 |
|
|
|
155,548 |
|
|
|
622,671 |
|
|
|
616,867 |
|
Costs associated with product sales |
|
125,846 |
|
|
|
108,730 |
|
|
|
407,793 |
|
|
|
486,947 |
|
Impairment loss |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
46,122 |
|
Segment operating income |
|
167,545 |
|
|
|
165,682 |
|
|
|
603,723 |
|
|
|
533,287 |
|
Gain on sale of assets |
|
— |
|
|
|
— |
|
|
|
41,075 |
|
|
|
— |
|
General and administrative expenses |
|
34,418 |
|
|
|
34,460 |
|
|
|
129,846 |
|
|
|
117,116 |
|
Other depreciation and amortization expense |
|
1,056 |
|
|
|
1,776 |
|
|
|
4,728 |
|
|
|
7,358 |
|
Consolidated operating income |
$ |
132,071 |
|
|
$ |
129,446 |
|
|
$ |
510,224 |
|
|
$ |
408,813 |
|
NuStar Energy L.P. and Subsidiaries
Reconciliation of Non-GAAP Financial Information
(Unaudited, Thousands of Dollars, Except Ratio Data)
Note 1: NuStar Energy L.P. (the Partnership) 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
Our board of directors and management use EBITDA and/or DCF when assessing the following: (i) the performance of our assets, (ii) the viability of potential projects, (iii) our ability to fund distributions, (iv) our ability to fund capital expenditures and (v) our ability to service debt. In addition, our board of directors uses EBITDA, DCF and a distribution coverage ratio, which is calculated based on DCF, as some of the factors in its compensation determinations. DCF is a financial indicator used by the master limited partnership (MLP) investment community to compare partnership performance. DCF is used by the MLP investment community, in part, because the value of a partnership unit is partially based on its yield, and its yield is based on the cash distributions a partnership can pay its unitholders.
None of these financial measures are presented as an alternative to net income. They should not be considered in isolation or as substitutes for a measure of performance prepared in accordance with GAAP.
The following is a reconciliation of net income to EBITDA, DCF and distribution coverage ratio.
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net income |
$ |
70,391 |
|
|
$ |
91,603 |
|
|
$ |
273,663 |
|
|
$ |
222,747 |
|
Interest expense, net |
|
62,698 |
|
|
|
55,956 |
|
|
|
241,364 |
|
|
|
209,009 |
|
Income tax expense |
|
1,899 |
|
|
|
911 |
|
|
|
5,412 |
|
|
|
3,239 |
|
Depreciation and amortization expense |
|
64,239 |
|
|
|
64,971 |
|
|
|
255,710 |
|
|
|
259,236 |
|
EBITDA |
|
199,227 |
|
|
|
213,441 |
|
|
|
776,149 |
|
|
|
694,231 |
|
Interest expense, net |
|
(62,698 |
) |
|
|
(55,956 |
) |
|
|
(241,364 |
) |
|
|
(209,009 |
) |
Reliability capital expenditures |
|
(7,504 |
) |
|
|
(8,118 |
) |
|
|
(27,995 |
) |
|
|
(32,775 |
) |
Income tax expense |
|
(1,899 |
) |
|
|
(911 |
) |
|
|
(5,412 |
) |
|
|
(3,239 |
) |
Long-term incentive equity awards (a) |
|
3,242 |
|
|
|
3,337 |
|
|
|
12,919 |
|
|
|
11,434 |
|
Preferred unit distributions |
|
(23,335 |
) |
|
|
(32,511 |
) |
|
|
(114,729 |
) |
|
|
(127,589 |
) |
Impairment loss |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
46,122 |
|
Income tax benefit related to impairment loss |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,144 |
) |
Premium on redemption/repurchase of Series D Cumulative Convertible Preferred Units |
|
— |
|
|
|
(49,600 |
) |
|
|
(107,770 |
) |
|
|
(49,600 |
) |
Other items |
|
(19,696 |
) |
|
|
255 |
|
|
|
(4,737 |
) |
|
|
9,051 |
|
DCF |
$ |
87,337 |
|
|
$ |
69,937 |
|
|
$ |
287,061 |
|
|
$ |
337,482 |
|
|
|
|
|
|
|
|
|
||||||||
Distributions applicable to common limited partners |
$ |
50,607 |
|
|
$ |
44,328 |
|
|
$ |
189,724 |
|
|
$ |
176,746 |
|
Distribution coverage ratio (b) |
1.73x |
|
1.58x |
|
1.51x |
|
1.91x |
||||||||
(a) |
We intend to satisfy the vestings of these equity-based awards with the issuance of our common 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. |
(b) |
Distribution coverage ratio is calculated by dividing DCF by distributions applicable to common limited partners. |
NuStar Energy L.P. and Subsidiaries
Reconciliation of Non-GAAP Financial Information - Continued
(Unaudited, Thousands of Dollars, Except Ratio and Per Unit Data)
The following is the reconciliation for the calculation of our Consolidated Debt Coverage Ratio, as defined in our revolving credit agreement (the Revolving Credit Agreement).
|
Year Ended December 31, |
||||||
|
|
2023 |
|
|
|
2022 |
|
Operating income |
$ |
510,224 |
|
|
$ |
408,813 |
|
Depreciation and amortization expense |
|
255,710 |
|
|
|
259,236 |
|
Impairment loss |
|
— |
|
|
|
46,122 |
|
Amortization expense of equity-based awards |
|
15,547 |
|
|
|
13,781 |
|
Pro forma effect of disposition (a) |
|
— |
|
|
|
(1,760 |
) |
Other |
|
(6,087 |
) |
|
|
(3,607 |
) |
Consolidated EBITDA, as defined in the Revolving Credit Agreement |
$ |
775,394 |
|
|
$ |
722,585 |
|
|
|
|
|
||||
Long-term debt, less current portion of finance leases |
$ |
3,410,338 |
|
|
$ |
3,293,415 |
|
Long-term portion of finance leases |
|
(50,707 |
) |
|
|
(51,127 |
) |
Unamortized debt issuance costs |
|
27,809 |
|
|
|
33,252 |
|
NuStar Logistics’ floating rate subordinated notes |
|
(402,500 |
) |
|
|
(402,500 |
) |
Consolidated Debt, as defined in the Revolving Credit Agreement |
$ |
2,984,940 |
|
|
$ |
2,873,040 |
|
|
|
|
|
||||
Consolidated Debt Coverage Ratio (Consolidated Debt to Consolidated EBITDA) |
3.85x |
|
3.98x |
||||
(a) |
This adjustment represents the pro forma effect of the disposition of the Point Tupper terminal, which was sold in April 2022. |
The following are reconciliations of net income / net income per common unit to adjusted net income / adjusted net income per common unit.
|
|
Three Months Ended December 31, |
||||||||||||||
|
|
2023 |
|
|
2022 |
|
||||||||||
Net income / net income per common unit |
|
$ |
70,391 |
|
$ |
0.37 |
|
$ |
91,603 |
|
|
$ |
0.18 |
|
||
Gain from insurance recoveries |
|
|
— |
|
|
— |
|
|
(16,366 |
) |
|
|
(0.15 |
) |
||
Premium on repurchase of Series D Cumulative Convertible Preferred Units |
|
|
— |
|
|
— |
|
|
— |
|
|
|
0.31 |
|
||
Adjusted net income / adjusted net income per common unit |
|
$ |
70,391 |
|
$ |
0.37 |
|
$ |
75,237 |
|
|
$ |
0.34 |
|
||
|
|
Year Ended December 31, |
||||||||||||||
|
|
2023 |
|
|
2022 |
|
||||||||||
Net income / net income per common unit |
|
$ |
273,663 |
|
|
$ |
0.72 |
|
|
$ |
222,747 |
|
|
$ |
0.36 |
|
Premium on redemption/repurchase of Series D Cumulative Convertible Preferred Units |
|
|
— |
|
|
|
0.55 |
|
|
|
— |
|
|
|
0.31 |
|
Gain on sale of assets |
|
|
(41,075 |
) |
|
|
(0.35 |
) |
|
|
— |
|
|
|
— |
|
Impairment loss |
|
|
— |
|
|
|
— |
|
|
|
46,122 |
|
|
|
0.42 |
|
Income tax benefit related to impairment loss |
|
|
— |
|
|
|
— |
|
|
|
(1,144 |
) |
|
|
(0.01 |
) |
Gain from insurance recoveries |
|
|
— |
|
|
|
— |
|
|
|
(16,366 |
) |
|
|
(0.15 |
) |
Other |
|
|
— |
|
|
|
— |
|
|
|
(1,564 |
) |
|
|
(0.01 |
) |
Adjusted net income / adjusted net income per common unit |
|
$ |
232,588 |
|
|
$ |
0.92 |
|
|
$ |
249,795 |
|
|
$ |
0.92 |
|
NuStar Energy L.P. and Subsidiaries
Reconciliation of Non-GAAP Financial Information - Continued
(Unaudited, Thousands of Dollars, Except Ratio Data)
The following is a reconciliation of EBITDA to adjusted EBITDA.
|
Three Months Ended
|
|
Year Ended
|
|||||||||||
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
EBITDA |
$ |
199,227 |
|
$ |
213,441 |
|
|
$ |
776,149 |
|
|
$ |
694,231 |
|
Gain on sale of assets |
|
— |
|
|
— |
|
|
|
(41,075 |
) |
|
|
— |
|
Gain from insurance recoveries |
|
— |
|
|
(16,366 |
) |
|
|
— |
|
|
|
(16,366 |
) |
Impairment loss |
|
— |
|
|
— |
|
|
|
— |
|
|
|
46,122 |
|
Other |
|
— |
|
|
— |
|
|
|
— |
|
|
|
(1,564 |
) |
Adjusted EBITDA |
$ |
199,227 |
|
$ |
197,075 |
|
|
$ |
735,074 |
|
|
$ |
722,423 |
|
The following is a reconciliation of DCF to adjusted DCF and adjusted distribution coverage ratio.
|
Three Months Ended
|
|
Year Ended December 31, |
|||||||||||
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
DCF |
$ |
87,337 |
|
$ |
69,937 |
|
|
$ |
287,061 |
|
|
$ |
337,482 |
|
Premium on repurchase/redemption of Series D Cumulative Convertible Preferred Units |
|
— |
|
|
49,600 |
|
|
|
107,770 |
|
|
|
49,600 |
|
Gain from insurance recoveries |
|
— |
|
|
(16,366 |
) |
|
|
— |
|
|
|
(16,366 |
) |
Gain on sale of assets |
|
— |
|
|
— |
|
|
|
(41,075 |
) |
|
|
— |
|
Other |
|
— |
|
|
(13,955 |
) |
|
|
— |
|
|
|
(13,955 |
) |
Adjusted DCF |
$ |
87,337 |
|
$ |
89,216 |
|
|
$ |
353,756 |
|
|
$ |
356,761 |
|
|
|
|
|
|
|
|
|
|||||||
Distributions applicable to common limited partners |
$ |
50,607 |
|
$ |
44,328 |
|
|
$ |
189,724 |
|
|
$ |
176,746 |
|
Adjusted distribution coverage ratio (a) |
1.73x |
|
2.01x |
|
1.86x |
|
2.02x |
|||||||
(a) |
Adjusted distribution coverage ratio is calculated by dividing adjusted DCF by distributions applicable to common limited partners. |
NuStar Energy L.P.
Reconciliation of Non-GAAP Financial Information - Continued
(Unaudited, Thousands of Dollars)
The following are reconciliations for our reported segments of operating income to segment EBITDA and adjusted segment EBITDA.
|
Three Months Ended December 31, 2023 |
|||||||
|
Pipeline |
|
Storage |
|
Fuels Marketing |
|||
Operating income |
$ |
129,573 |
|
$ |
26,282 |
|
$ |
11,690 |
Depreciation and amortization expense |
|
44,294 |
|
|
18,889 |
|
|
— |
Segment EBITDA |
$ |
173,867 |
|
$ |
45,171 |
|
$ |
11,690 |
|
|
|
|
|
|
|||
|
Three Months Ended December 31, 2022 |
|||||||
|
Pipeline |
|
Storage |
|
Fuels Marketing |
|||
Operating income |
$ |
131,600 |
|
$ |
22,240 |
|
$ |
11,842 |
Depreciation and amortization expense |
|
44,726 |
|
|
18,469 |
|
|
— |
Segment EBITDA |
$ |
176,326 |
|
$ |
40,709 |
|
$ |
11,842 |
|
|
|
|
|
|
|||
|
Year Ended December 31, 2023 |
|||||||
|
Pipeline |
|
Storage |
|
Fuels Marketing |
|||
Operating income |
$ |
483,188 |
|
$ |
87,609 |
|
$ |
32,926 |
Depreciation and amortization expense |
|
175,930 |
|
|
75,052 |
|
|
— |
Segment EBITDA |
$ |
659,118 |
|
$ |
162,661 |
|
$ |
32,926 |
|
|
|
|
|
|
|||
|
Year Ended December 31, 2022 |
|||||||
|
Pipeline |
|
Storage |
|
Fuels Marketing |
|||
Operating income |
$ |
438,670 |
|
$ |
61,081 |
|
$ |
33,536 |
Depreciation and amortization expense |
|
178,802 |
|
|
73,076 |
|
|
— |
Segment EBITDA |
|
617,472 |
|
|
134,157 |
|
|
33,536 |
Impairment loss |
|
— |
|
|
46,122 |
|
|
— |
Adjusted segment EBITDA |
$ |
617,472 |
|
$ |
180,279 |
|
$ |
33,536 |
The following is a reconciliation of projected net income to EBITDA.
|
Projected for the Year Ended
|
|
Net income |
$ |
220,000 - 260,000 |
Interest expense, net |
242,000 - 249,000 |
|
Income tax expense |
3,000 - 6,000 |
|
Depreciation and amortization expense |
255,000 - 265,000 |
|
EBITDA |
$ |
720,000 - 780,000 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240214468139/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 was NuStar Energy L.P.'s (NS) net income for the fourth quarter of 2023?
What was NuStar Energy L.P.'s (NS) adjusted net income for the full-year 2023?
What was NuStar Energy L.P.'s (NS) EBITDA for the fourth quarter of 2023?
What was NuStar Energy L.P.'s (NS) Distributable Cash Flow (DCF) for the full-year 2023?
How did NuStar Energy L.P.'s (NS) Pipeline Segment perform in Q4 2023?
What were the financial expectations provided by NuStar Energy L.P. (NS) for 2024?
