INVESTMENT IN NUSTAR ENERGY (Tables)

12 Months Ended

Dec. 31, 2017

The following is a summary of NuStar Energy’s preferred units outstanding as of December 31, 2017:



Units	Original Issuance Date	Number of Units Issued and Outstanding	Fixed Distribution Rate per Annum (as a Percentage of the $25.00 Liquidation Preference per Unit)		Fixed Distribution Rate per Unit per Annum		Date at Which Distribution Rate Becomes Floating	Floating Annual Rate (as a Percentage of the $25.00 Liquidation Preference per Unit)
Series A Preferred Units	November 25, 2016	9,060,000	8.50	%	$	2.125	December 15, 2021	Three-month LIBOR plus 6.766%
Series B Preferred Units	April 28, 2017	15,400,000	7.625	%	$	1.90625	June 15, 2022	Three-month LIBOR plus 5.643%
Series C Preferred Units	November 30, 2017	6,900,000	9.00	%	$	2.25	December 15, 2022	Three-month LIBOR plus 6.88%

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



	December 31,
	2017		2016
	(Thousands of Dollars)
Balance Sheet Information:
Current assets	$	250,432	$	377,183
Property, plant and equipment, net	4,300,933		3,722,283
Goodwill	1,097,475		696,637
Other non-current assets	886,393		234,442
Total assets	$	6,535,233	$	5,030,545
Current liabilities	$	651,506	$	289,396
Long-term debt	3,263,069		3,014,364
Other non-current liabilities	140,569		115,168
Total liabilities	4,055,144		3,418,928
NuStar Energy partners’ equity	2,480,089		1,611,617
Total liabilities and partners’ equity	$	6,535,233	$	5,030,545

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



	Year Ended December 31,
	2017		2016		2015
	(Thousands of Dollars)
Statement of Income Information:
Revenues	$	1,814,019	$	1,756,682	$	2,084,040
Operating income	$	336,278	$	359,109	$	390,704

Income from continuing operations	$	147,964	$	150,003	$	305,946
Income from discontinued operations, net of tax	—		—		774
Net income	$	147,964	$	150,003	$	306,720

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



	December 31,
	2017			2016
	(Thousands of Dollars, Except Percentage Data)
NuStar Energy’s partners’ equity	$	2,480,089		$	1,611,617
Less NuStar Energy’s preferred limited partners’ equity	756,603			218,400
NuStar Energy’s partners’ equity, excluding preferred limited partners’ equity	1,723,486			1,393,217
NuStar GP Holdings’ ownership interest in NuStar Energy	12.8		%	14.7		%
NuStar GP Holdings’ share of NuStar Energy’s partners’ equity	220,606			204,803
Step-up in basis related to NuStar Energy’s assets and liabilities, including equity method goodwill, and other	59,115			63,939
Investment in NuStar Energy	$	279,721		$	268,742

The following table summarizes our equity in earnings of NuStar Energy:



	Year Ended December 31,
	2017			2016			2015
	(Thousands of Dollars)
NuStar GP Holdings’ Equity in Earnings of NuStar Energy:
General partner interest	$	1,237		$	2,091		$	5,270
General partner incentive distribution rights	45,669			43,407			43,220
General partner’s interest in earnings and incentive distributions of NuStar Energy	46,906			45,498			48,490
Common limited partner interest in earnings of NuStar Energy	7,534			13,482			34,067
Amortization of step-up in basis related to NuStar Energy’s assets and liabilities	(2,884		)	(2,884		)	(2,884		)
Equity in earnings of NuStar Energy	$	51,556		$	56,096		$	79,673