Delaware | 001-16417 | 74-2956831 |
(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 January 29, 2016. |
NUSTAR ENERGY L.P. | ||||
By: | Riverwalk Logistics, L.P. | |||
its general partner | ||||
By: | NuStar GP, LLC | |||
its general partner | ||||
Date: January 29, 2016 | By: | /s/ Amy L. Perry | ||
Name: | Amy L. Perry | |||
Title: | Senior Vice President, General Counsel–Corporate & Commercial and Corporate Secretary |
Exhibit Number | Exhibit | |
Exhibit 99.1 | Press Release dated January 29, 2016. |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Statement of Income Data: | |||||||||||||||
Revenues: | |||||||||||||||
Service revenues | $ | 281,025 | $ | 270,895 | $ | 1,114,153 | $ | 1,026,446 | |||||||
Product sales | 183,894 | 410,843 | 969,887 | 2,048,672 | |||||||||||
Total revenues | 464,919 | 681,738 | 2,084,040 | 3,075,118 | |||||||||||
Costs and expenses: | |||||||||||||||
Cost of product sales | 169,500 | 389,020 | 907,574 | 1,967,528 | |||||||||||
Operating expenses | 117,612 | 135,359 | 473,031 | 472,925 | |||||||||||
General and administrative expenses | 27,096 | 27,070 | 102,521 | 96,056 | |||||||||||
Depreciation and amortization expense | 52,687 | 48,943 | 210,210 | 191,708 | |||||||||||
Total costs and expenses | 366,895 | 600,392 | 1,693,336 | 2,728,217 | |||||||||||
Operating income | 98,024 | 81,346 | 390,704 | 346,901 | |||||||||||
Equity in earnings of joint ventures | — | 3,059 | — | 4,796 | |||||||||||
Interest expense, net | (33,559 | ) | (31,735 | ) | (131,868 | ) | (131,226 | ) | |||||||
Other (expense) income, net | (70 | ) | 2,683 | 61,822 | 4,499 | ||||||||||
Income from continuing operations before income tax expense | 64,395 | 55,353 | 320,658 | 224,970 | |||||||||||
Income tax expense | 4,915 | 484 | 14,712 | 10,801 | |||||||||||
Income from continuing operations | 59,480 | 54,869 | 305,946 | 214,169 | |||||||||||
(Loss) income from discontinued operations, net of tax | — | (1,475 | ) | 774 | (3,791 | ) | |||||||||
Net income | $ | 59,480 | $ | 53,394 | $ | 306,720 | $ | 210,378 | |||||||
Net income applicable to limited partners | $ | 47,485 | $ | 41,522 | $ | 257,366 | $ | 163,339 | |||||||
Net income (loss) per unit applicable to limited partners: | |||||||||||||||
Continuing operations | $ | 0.61 | $ | 0.55 | $ | 3.29 | $ | 2.14 | |||||||
Discontinued operations | — | (0.01 | ) | 0.01 | (0.04 | ) | |||||||||
Total | $ | 0.61 | $ | 0.54 | $ | 3.30 | $ | 2.10 | |||||||
Weighted-average limited partner units outstanding | 77,886,078 | 77,886,078 | 77,886,078 | 77,886,078 | |||||||||||
EBITDA from continuing operations (Note 1) | $ | 150,641 | $ | 136,031 | $ | 662,736 | $ | 547,904 | |||||||
DCF from continuing operations (Note 1) | $ | 102,393 | $ | 108,173 | $ | 428,971 | $ | 405,890 | |||||||
December 31, | |||||||||||||||
2015 | 2014 | ||||||||||||||
Balance Sheet Data: | |||||||||||||||
Total debt | $ | 3,163,349 | $ | 2,826,452 | |||||||||||
Partners’ equity | 1,609,844 | 1,716,210 | |||||||||||||
Consolidated debt coverage ratio (Note 2) | 4.5x | 4.0x |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Pipeline: | |||||||||||||||
Refined products pipelines throughput (barrels/day) | 551,246 | 533,521 | 522,146 | 510,737 | |||||||||||
Crude oil pipelines throughput (barrels/day) | 435,007 | 490,969 | 471,632 | 437,757 | |||||||||||
Total throughput (barrels/day) | 986,253 | 1,024,490 | 993,778 | 948,494 | |||||||||||
Throughput revenues | $ | 130,492 | $ | 130,812 | $ | 508,522 | $ | 477,030 | |||||||
Operating expenses | 40,081 | 44,421 | 153,222 | 154,106 | |||||||||||
Depreciation and amortization expense | 22,058 | 20,036 | 84,951 | 77,691 | |||||||||||
Segment operating income | $ | 68,353 | $ | 66,355 | $ | 270,349 | $ | 245,233 | |||||||
Storage: | |||||||||||||||
Throughput (barrels/day) | 888,033 | 918,929 | 899,606 | 887,607 | |||||||||||
Throughput revenues | $ | 31,762 | $ | 31,867 | $ | 130,127 | $ | 123,051 | |||||||
Storage lease revenues | 123,067 | 111,142 | 494,781 | 441,455 | |||||||||||
Total revenues | 154,829 | 143,009 | 624,908 | 564,506 | |||||||||||
Operating expenses | 70,185 | 74,952 | 290,322 | 277,554 | |||||||||||
Depreciation and amortization expense | 28,541 | 26,368 | 116,768 | 103,848 | |||||||||||
Segment operating income | $ | 56,103 | $ | 41,689 | $ | 217,818 | $ | 183,104 | |||||||
Fuels Marketing: | |||||||||||||||
Product sales and other revenue | $ | 185,497 | $ | 414,205 | $ | 976,216 | $ | 2,060,017 | |||||||
Cost of product sales | 172,820 | 392,734 | 922,906 | 1,983,339 | |||||||||||
Gross margin | 12,677 | 21,471 | 53,310 | 76,678 | |||||||||||
Operating expenses | 9,926 | 18,563 | 39,803 | 51,857 | |||||||||||
Depreciation and amortization expense | — | — | — | 16 | |||||||||||
Segment operating income | $ | 2,751 | $ | 2,908 | $ | 13,507 | $ | 24,805 | |||||||
Consolidation and Intersegment Eliminations: | |||||||||||||||
Revenues | $ | (5,899 | ) | $ | (6,288 | ) | $ | (25,606 | ) | $ | (26,435 | ) | |||
Cost of product sales | (3,320 | ) | (3,714 | ) | (15,332 | ) | (15,811 | ) | |||||||
Operating expenses | (2,580 | ) | (2,577 | ) | (10,316 | ) | (10,592 | ) | |||||||
Total | $ | 1 | $ | 3 | $ | 42 | $ | (32 | ) | ||||||
Consolidated Information: | |||||||||||||||
Revenues | $ | 464,919 | $ | 681,738 | $ | 2,084,040 | $ | 3,075,118 | |||||||
Cost of product sales | 169,500 | 389,020 | 907,574 | 1,967,528 | |||||||||||
Operating expenses | 117,612 | 135,359 | 473,031 | 472,925 | |||||||||||
Depreciation and amortization expense | 50,599 | 46,404 | 201,719 | 181,555 | |||||||||||
Segment operating income | 127,208 | 110,955 | 501,716 | 453,110 | |||||||||||
General and administrative expenses | 27,096 | 27,070 | 102,521 | 96,056 | |||||||||||
Other depreciation and amortization expense | 2,088 | 2,539 | 8,491 | 10,153 | |||||||||||
Consolidated operating income | $ | 98,024 | $ | 81,346 | $ | 390,704 | $ | 346,901 |
(1) | NuStar Energy L.P. utilizes financial measures such as earnings before interest, taxes, depreciation and amortization (EBITDA), distributable cash flow (DCF), adjusted net income and adjusted net income per unit (collectively, financial measures), which are not defined in U.S. generally accepted accounting principles (GAAP). Management uses these financial measures because they are widely accepted financial indicators used by investors to compare partnership performance. In addition, management believes that these financial measures provide investors an enhanced perspective of the operating performance of the partnership’s assets and/or the cash that the business is generating. None of these financial measures are presented as an alternative to net income or income from continuing operations. They should not be considered in isolation or as substitutes for a measure of performance prepared in accordance with GAAP. For purposes of segment reporting, we do not allocate general and administrative expenses to our reported operating segments because those expenses relate primarily to the overall management at the entity level. Therefore, EBITDA reflected in the segment reconciliations exclude any allocation of general and administrative expenses consistent with our policy for determining segmental operating income, the most directly comparable GAAP measure. |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Income from continuing operations | $ | 59,480 | $ | 54,869 | $ | 305,946 | $ | 214,169 | |||||||
Plus interest expense, net | 33,559 | 31,735 | 131,868 | 131,226 | |||||||||||
Plus income tax expense | 4,915 | 484 | 14,712 | 10,801 | |||||||||||
Plus depreciation and amortization expense | 52,687 | 48,943 | 210,210 | 191,708 | |||||||||||
EBITDA from continuing operations | 150,641 | 136,031 | 662,736 | 547,904 | |||||||||||
Equity in earnings of joint ventures | — | (3,059 | ) | — | (4,796 | ) | |||||||||
Interest expense, net | (33,559 | ) | (31,735 | ) | (131,868 | ) | (131,226 | ) | |||||||
Reliability capital expenditures | (17,936 | ) | (10,373 | ) | (40,002 | ) | (28,635 | ) | |||||||
Income tax expense | (4,915 | ) | (484 | ) | (14,712 | ) | (10,801 | ) | |||||||
Distributions from joint ventures | — | 1,708 | 2,500 | 7,587 | |||||||||||
Other items (a) | 9,282 | 11,686 | (44,032 | ) | 19,732 | ||||||||||
Mark-to-market impact on hedge transactions (b) | (1,120 | ) | 4,399 | (5,651 | ) | 6,125 | |||||||||
DCF from continuing operations | $ | 102,393 | $ | 108,173 | $ | 428,971 | $ | 405,890 | |||||||
Less DCF from continuing operations available to general partner | 12,766 | 12,766 | 51,064 | 51,064 | |||||||||||
DCF from continuing operations available to limited partners | $ | 89,627 | $ | 95,407 | $ | 377,907 | $ | 354,826 | |||||||
DCF from continuing operations per limited partner unit | $ | 1.15 | $ | 1.23 | $ | 4.85 | $ | 4.56 |
(a) | Other items mainly consist of (i) a ($56.3 million) non-cash gain and insurance proceeds of $7.8 million mainly received in the fourth quarter of 2015, associated with the Linden terminal acquisition on January 2, 2015; (ii) a lower of cost or market adjustment of $3.8 million for the three months and year ended December 31, 2014 and (iii) the net change in deferred revenue associated with throughput deficiency payments and construction reimbursements for all periods presented. |
(b) | DCF from continuing operations excludes the impact of unrealized mark-to-market gains and losses that arise from valuing certain derivative contracts, as well as the associated hedged inventory. The gain or loss associated with these contracts is realized in DCF from continuing operations when the contracts are settled. |
The following is a reconciliation of net income and net income per unit to adjusted net income applicable to limited partners and adjusted net income per unit: |
Year Ended December 31, 2015 | |||||||
Net income / net income per unit | $ | 306,720 | $ | 3.30 | |||
Gain on Linden terminal acquisition | (56,277 | ) | (0.71 | ) | |||
Adjusted net income | 250,443 | ||||||
GP interest and incentive | (48,228 | ) | |||||
Adjusted net income applicable to limited partners / adjusted net income per unit | $ | 202,215 | $ | 2.59 |
Year Ended December 31, 2015 | |||
EBITDA from continuing operations | $ | 662,736 | |
Gain on Linden terminal acquisition | (56,277 | ) | |
Adjusted EBITDA from continuing operations | $ | 606,459 |
Year Ended December 31, 2016 | ||||||
Pipeline | Storage | Fuels Marketing | ||||
Projected operating income | $ 250,000 - 265,000 | $ 195,000 - 210,000 | $ 15,000 - 35,000 | |||
Plus projected depreciation and amortization expense | 85,000 - 90,000 | 115,000 - 120,000 | — | |||
Projected EBITDA | $ 335,000 - 355,000 | $ 310,000 - 330,000 | $ 15,000 - 35,000 |
(2) | The consolidated debt coverage ratio is calculated as consolidated debt to consolidated EBITDA, each as defined in our $1.5 billion five-year revolving credit agreement. |