INVESTMENT IN NUSTAR ENERGY

9 Months Ended

Sep. 30, 2011

INVESTMENT IN NUSTAR ENERGY [Abstract]

Summary Financial Information

Condensed consolidated financial information reported by NuStar Energy is presented below (in thousands of dollars):



	September 30, 2011		December 31, 2010
	(Unaudited)
Balance Sheet Information:
Current assets	$	1,199,910	$	939,507
Property, plant and equipment, net	3,385,436		3,187,457
Goodwill	846,526		813,270
Other long-term assets, net	416,276		446,159
Total assets	$	5,848,148	$	5,386,393
Current liabilities	$	983,059	$	393,229
Long-term debt, less current portion	2,170,010		2,136,248
Other long-term liabilities	170,030		154,216
Total liabilities	3,323,099		2,683,693
NuStar Energy partners' equity	2,512,367		2,702,700
Noncontrolling interest	12,682		—
Total liabilities and partners’ equity	$	5,848,148	$	5,386,393



	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
	(Thousands of Dollars)
Statement of Income Information:
Revenues	$	1,824,350	$	1,138,379	$	4,648,150	$	3,208,849
Operating income	92,977		90,290		266,059		232,093
Net income	70,281		68,310		191,402		187,435

Other

Our investment in NuStar Energy reconciles to NuStar Energy’s total partners’ equity as follows:



	September 30, 2011			December 31, 2010
	(Thousands of Dollars)
NuStar Energy’s total partners’ equity	$	2,512,367		$	2,702,700
NuStar GP Holdings’ ownership interest in NuStar Energy	17.6		%	17.6		%
NuStar GP Holdings’ share of NuStar Energy’s partners’ equity	442,177			475,675
Step-up in basis related to NuStar Energy’s assets and liabilities, including equity method goodwill, and other	88,017			91,001
Investment in NuStar Energy	$	530,194		$	566,676

- Definition

The entire disclosure for equity investment, or group of investments, for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20 percent of the voting stock and the investment is accounted for using the equity method, and the reasons why it is.

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