INVESTMENT IN NUSTAR ENERGY

3 Months Ended

Mar. 31, 2017

Equity Method Investments and Joint Ventures [Abstract]

Summary Financial Information

Condensed consolidated financial information reported by NuStar Energy is presented below:



	March 31, 2017		December 31, 2016
	(Thousands of Dollars)
Balance Sheet Information:
Current assets	$	253,666	$	377,183
Property, plant and equipment, net	3,723,268		3,722,283
Goodwill	696,637		696,637
Other non-current assets	221,845		234,442
Total assets	$	4,895,416	$	5,030,545
Current liabilities	$	254,492	$	289,396
Long-term debt	2,951,980		3,014,364
Other non-current liabilities	118,601		115,168
Total liabilities	3,325,073		3,418,928
NuStar Energy partners’ equity	1,570,343		1,611,617
Total liabilities and partners’ equity	$	4,895,416	$	5,030,545



	Three Months Ended March 31,
	2017		2016
	(Thousands of Dollars)
Statement of Comprehensive Income Information:
Revenues	$	487,430	$	405,703
Operating income	$	97,139	$	94,565
Net income	$	57,940	$	57,401

Other

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



	March 31, 2017			December 31, 2016
	(Thousands of Dollars)
NuStar Energy’s partners’ equity	$	1,570,343		$	1,611,617
Less NuStar Energy’s preferred limited partners’ equity	218,307			218,400
NuStar Energy’s partners’ equity, excluding preferred limited partners’ equity	1,352,036			1,393,217
NuStar GP Holdings’ ownership interest in NuStar Energy	14.7		%	14.7		%
NuStar GP Holdings’ share of NuStar Energy’s partners’ equity	198,749			204,803
Step-up in basis related to NuStar Energy’s assets and liabilities, including equity method goodwill, and other	64,588			63,939
Investment in NuStar Energy	$	263,337		$	268,742

We do not own any NuStar Energy preferred limited partner units. Accordingly, we subtract NuStar Energy’s preferred limited partners’ equity from its total equity and apply our ownership percentage of NuStar Energy’s remaining equity when reconciling to our investment in NuStar Energy above.