Sign In  |  Register  |  About Daly City  |  Contact Us

Daly City, CA
September 01, 2020 1:20pm
7-Day Forecast | Traffic
  • Search Hotels in Daly City

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

NuStar Energy L.P. Reports Solid Third Quarter of 2022 Earnings Results

Permian Crude System Volumes Hit Record-Breaking Average of 580,000 Barrels Per Day/Expect to Exit 2022 at Approximately 600,000 Barrels Per Day

Refined Product Volumes Still Tracking at Pre-Pandemic Levels

West Coast Renewable Fuels Network Continues to Grow with Two New Renewable Fuel Projects

Debt Metrics Continue to Improve Significantly

Full-Year Guidance/Positive Update on Optimization Initiative

NuStar Energy L.P. (NYSE: NS) today announced solid results for the third quarter of 2022 fueled by record-breaking volumes in its Permian Crude System.

NuStar reported net income of $60 million for the third quarter of 2022, or $0.20 per unit, compared to a net loss of $125 million, or $1.48 per unit, for the third quarter of 2021.

NuStar also reported earnings before interest, taxes, depreciation and amortization (EBITDA) of $178 million for the third quarter of 2022, compared to third quarter of 2021 adjusted EBITDA of $177 million.

“On an ‘apples-to-apples’ basis, excluding the contribution of the Eastern U.S. terminals we sold in October of 2021, and the Point Tupper terminal we sold in April of this year, our third quarter 2022 EBITDA increased $9.3 million, a 6 percent increase compared to adjusted EBITDA in the third quarter of 2021,” said NuStar Chairman and CEO Brad Barron.

Distributable cash flow (DCF) available to common limited partners was $93 million for the third quarter of 2022, compared to DCF of $92 million in the third quarter of 2021. The distribution coverage ratio to common limited partners was a strong 2.12 times for the third quarter of 2022.

Permian Crude System Hits Record-Breaking Volumes

NuStar’s Permian Crude System’s volumes hit another high in the third quarter of 2022 with a record-breaking average of 580,000 barrels per day (BPD), an increase of 15 percent over third quarter of 2021 volumes and an increase of 11 percent over the second quarter of 2022.

“The steady, strong volume growth we have seen in 2022 is a testament to our producers and to the quality and strength of our acreage,” said Barron. “We now expect to exit 2022 at around 600,000 BPD, or about 15 percent above our 2021 exit.”

Refined Product Volumes Still Tracking at Pre-Pandemic Levels

Barron stated that while a planned turnaround at a customer refinery reduced NuStar’s third quarter of 2022 volumes compared to the third quarter of 2021, its refined product volumes continue to track at pre-pandemic levels, which he said reflects the strength of its assets and the stability of demand in the markets NuStar serves across the mid-Continent and throughout Texas.

Barron added, “In addition, our Northern Mexico refined products supply system continues to perform well, with third quarter of 2022 throughput up 26 percent compared to the third quarter of 2021. And our Valley refined product pipeline throughputs were also up, with third quarter of 2022 throughput 14 percent above the third quarter of 2021.”

Corpus Christi Crude System Averaging Above Minimum Volume Commitments/Fuels Marketing Segment Performing Well

Barron commented that throughputs on NuStar’s Corpus Christi Crude System averaged over 341,000 BPD in the third quarter of 2022, which is above its minimum volume commitments for the system.

“We are encouraged by the continued growth in October, as our average volumes rose to almost 390,000 BPD for the month,” said Barron.

Barron also noted that operating income and EBITDA in NuStar’s Fuels Marketing Segment were $9 million in the third quarter of 2022, an $8 million increase compared to the third quarter of 2021, largely due to stronger margins.

West Coast Renewable Fuels Network Continues to Grow with Two Renewable Fuel Projects

Barron once again highlighted the growth of NuStar’s West Coast Renewable Fuels Network, which plays an integral role in facilitating the low-carbon renewable fuels that significantly reduce emissions from transportation.

“Our West Coast region’s revenues were up 20 percent in the third quarter of 2022 compared to the third quarter of 2021. And we are pleased to report that two new renewable fuel projects were brought into service at the end of the last quarter, which increased our renewable diesel storage capacity and augmented our ethanol transportation logistics capabilities at our Stockton, California terminal.

“Those two projects should further solidify the significant role that NuStar plays in facilitating California’s transition to low-carbon renewable fuels, where we already handle 77 percent of California’s sustainable aviation fuel; 19 percent of the state’s renewable diesel volumes; 9 percent of its ethanol; and 5 percent of its biodiesel,” said Barron.

Debt Metrics Continue to Improve Significantly

NuStar Executive Vice President and Chief Financial Officer Tom Shoaf gave an update on the company’s continued progress in reducing its debt and building its financial strength and flexibility.

“At the end of the third quarter of 2022, our total debt balance was $3.1 billion, and by continuing to pay down our revolving credit facility balance last quarter, we increased our facility availability to $993 million of the facility’s $1.0 billion capacity,” said Shoaf.

Shoaf continued, “Thanks to the progress we have made in reducing our debt balance, our interest expense in the third quarter of 2022 was $1 million lower than in the third quarter of 2021, despite higher interest rates on our variable rate debt.

“We ended the third quarter of 2022 with a debt-to-EBITDA ratio of 3.79 times, which is substantially improved from our ratio of above 4 times in the third quarter of 2021, and also improved from our ratio of 3.93 times in the second quarter of 2022."

Full-Year Guidance/Positive Update on Optimization Initiative

Shoaf also gave full-year guidance for net income and EBITDA, as well as strategic capital and reliability capital for 2022.

“We expect to generate full-year 2022 net income in the range of $193 to $206 million and full-year 2022 adjusted EBITDA in the range of $700 to $730 million,” said Shoaf.

He also noted that NuStar now plans to spend $105 to $125 million in strategic capital in 2022.

“We still expect to allocate almost $60 million to growing our Permian system and plan to spend about $10 million to expand our West Coast Renewable Fuels Network,” said Shoaf. “In addition, we now expect to spend between $30 and $40 million on reliability in 2022.”

Barron then provided an update on NuStar’s optimization initiative that was kicked off earlier this year with the goal of making meaningful reductions in NuStar’s expenses and capital spending to increase the company’s free cash flow in 2022 and beyond.

“In August, we told you we had identified almost $60 million in reductions across 2022 and 2023,” said Barron. “And I am happy to report that total is now up to almost $100 million. We have successfully reduced our full-year 2022 capital spending and expenses by over $40 million and our total 2023 spending and expenses by over $50 million. Thanks to our optimization initiative, we have been able to mitigate the impact of 2022’s historic inflation rate and maximize our free cash flows.

“Because of the meaningful progress we have made, we are now positioned to accelerate our time frame for addressing the Series D preferred units by completing the redemption in 2024, which is several years ahead of our previously scheduled timeframe. We are currently in discussions with the holders to repurchase approximately one-third of the Series D preferred units by the end of this year. We then plan to redeem approximately another third of them in 2023, and complete the redemption in 2024, while continuing to target our debt metric at about 4 times. This redemption is another important step in our ongoing optimization and will meaningfully increase our cash flow over the next few years.”

Barron closed by mentioning his appreciation for Bill Greehey, who stepped down from his position as NuStar’s chairman of the board last week to become chairman emeritus.

“I have had the privilege of working for Bill for over 20 years, and I am deeply grateful for the opportunity to learn from him and bear witness to his vision and leadership,” said Barron. “Here at NuStar, we are thankful to be able to carry forward the strong corporate culture Bill established. Because of Bill, we have an ethical culture that prioritizes safety, environmental responsibility, fiscal stewardship and giving back to our communities.

“We are committed to working hard to demonstrate our gratitude to Bill by nourishing the corporate culture he built and by generating long-term, stable value for Bill and all of our unitholders.”

Conference Call Details

A conference call with management is scheduled for 9:00 a.m. CT on Thursday, November 3, 2022. The partnership plans to discuss the third quarter 2022 earnings results, which will be released earlier that day. Persons interested in Q&A participation may pre-register for the conference call and obtain a dial-in number and passcode at https://register.vevent.com/register/BI1554769b53db4165b0ca04dc6997524b. Persons interested in listen-only participation may access the conference call directly at https://edge.media-server.com/mmc/p/cignyz9w. A recorded version will be available under the same link two hours after the conclusion of the conference call.

The conference call may also be accessed through the “Investors” section of NuStar Energy L.P.’s website at https://investor.nustarenergy.com.

NuStar Energy L.P., a publicly traded master limited partnership based in San Antonio, Texas, is one of the largest independent liquids terminal and pipeline operators in the nation. NuStar currently has approximately 10,000 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 the United States and Mexico. For more information, visit NuStar Energy L.P.’s website at www.nustarenergy.com and its Sustainability page at https://sustainability.nustarenergy.com/.

Cautionary Statement Regarding Forward-Looking Statements

This press release includes, and the related conference call will include, 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 2021 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 September 30,

 

Nine Months Ended September 30,

 

2022

 

2021

 

2022

 

2021

Statement of Income Data:

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

Service revenues

$

277,380

 

 

$

296,473

 

 

$

820,752

 

 

$

869,144

 

Product sales

 

135,863

 

 

 

115,872

 

 

 

432,511

 

 

 

331,940

 

Total revenues

 

413,243

 

 

 

412,345

 

 

 

1,253,263

 

 

 

1,201,084

 

Costs and expenses:

 

 

 

 

 

 

 

Costs associated with service revenues:

 

 

 

 

 

 

 

Operating expenses

 

91,286

 

 

 

100,143

 

 

 

272,636

 

 

 

287,923

 

Depreciation and amortization expense

 

63,140

 

 

 

66,126

 

 

 

188,683

 

 

 

203,508

 

Total costs associated with service revenues

 

154,426

 

 

 

166,269

 

 

 

461,319

 

 

 

491,431

 

Costs associated with product sales

 

117,324

 

 

 

107,047

 

 

 

378,217

 

 

 

300,801

 

Goodwill impairment loss

 

 

 

 

34,060

 

 

 

 

 

 

34,060

 

Other impairment losses

 

 

 

 

154,908

 

 

 

46,122

 

 

 

154,908

 

General and administrative expenses

 

27,676

 

 

 

27,365

 

 

 

82,656

 

 

 

79,334

 

Other depreciation and amortization expense

 

1,935

 

 

 

1,881

 

 

 

5,582

 

 

 

5,841

 

Total costs and expenses

 

301,361

 

 

 

491,530

 

 

 

973,896

 

 

 

1,066,375

 

Operating income (loss)

 

111,882

 

 

 

(79,185

)

 

 

279,367

 

 

 

134,709

 

Interest expense, net

 

(52,294

)

 

 

(53,513

)

 

 

(153,053

)

 

 

(162,211

)

Other income, net

 

1,475

 

 

 

8,450

 

 

 

7,158

 

 

 

11,744

 

Income (loss) before income tax expense

 

61,063

 

 

 

(124,248

)

 

 

133,472

 

 

 

(15,758

)

Income tax expense

 

1,430

 

 

 

685

 

 

 

2,328

 

 

 

3,535

 

Net income (loss)

$

59,633

 

 

$

(124,933

)

 

$

131,144

 

 

$

(19,293

)

 

 

 

 

 

 

 

 

Basic and diluted net income (loss) per common unit

$

0.20

 

 

$

(1.48

)

 

$

0.18

 

 

$

(1.18

)

Basic and diluted weighted-average common units outstanding

 

110,310,921

 

 

 

109,532,381

 

 

 

110,265,359

 

 

 

109,522,849

 

 

 

 

 

 

 

 

 

Other Data (Note 1):

 

 

 

 

 

 

 

Adjusted net income

$

59,633

 

$

54,663

 

 

$

174,558

 

$

160,303

Adjusted net income per common unit

$

0.20

 

$

0.16

 

 

$

0.58

 

$

0.46

EBITDA

$

178,432

 

$

(2,728

)

 

$

480,790

 

$

355,802

Adjusted EBITDA

$

178,432

 

$

176,868

 

 

$

525,348

 

$

535,398

DCF

$

93,485

 

$

92,067

 

 

$

267,545

 

$

269,987

Distribution coverage ratio

 

2.12x

 

 

2.10x

 

 

 

2.02x

 

 

2.05x

 

For the Four Quarters Ended September 30,

 

2022

 

2021

Consolidated Debt Coverage Ratio

3.79x

 

4.10x

NuStar Energy L.P. and Subsidiaries

Consolidated Financial Information - Continued

(Unaudited, Thousands of Dollars, Except Barrel Data)

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2022

 

2021

 

2022

 

2021

Pipeline:

 

 

 

 

 

 

 

 

Crude oil pipelines throughput (barrels/day)

 

1,335,336

 

 

 

1,374,909

 

 

 

1,288,489

 

 

 

1,241,152

 

Refined products and ammonia pipelines throughput (barrels/day)

 

560,202

 

 

 

599,423

 

 

 

568,533

 

 

 

572,040

 

Total throughput (barrels/day)

 

1,895,538

 

 

 

1,974,332

 

 

 

1,857,022

 

 

 

1,813,192

 

 

 

 

 

 

 

 

 

 

Throughput and other revenues

$

209,008

 

 

$

196,207

 

 

$

598,256

 

 

$

558,341

 

Operating expenses

 

53,837

 

 

 

51,303

 

 

 

157,110

 

 

 

147,762

 

Depreciation and amortization expense

 

44,806

 

 

 

45,506

 

 

 

134,076

 

 

 

135,290

 

Other impairment loss

 

 

 

 

59,197

 

 

 

 

 

 

59,197

 

Segment operating income

$

110,365

 

 

$

40,201

 

 

$

307,070

 

 

$

216,092

 

Storage:

 

 

 

 

 

 

 

 

Throughput (barrels/day)

 

439,239

 

 

 

462,094

 

 

 

410,594

 

 

 

416,288

 

 

 

 

 

 

 

 

 

 

Throughput terminal revenues

$

26,933

 

 

$

30,771

 

 

$

84,303

 

 

$

90,708

 

Storage terminal revenues

 

51,459

 

 

 

77,371

 

 

 

170,793

 

 

 

245,256

 

Total revenues

 

78,392

 

 

 

108,142

 

 

 

255,096

 

 

 

335,964

 

Operating expenses

 

37,449

 

 

 

48,840

 

 

 

115,526

 

 

 

140,161

 

Depreciation and amortization expense

 

18,334

 

 

 

20,620

 

 

 

54,607

 

 

 

68,218

 

Goodwill impairment loss

 

 

 

 

34,060

 

 

 

 

 

 

34,060

 

Other impairment loss

 

 

 

 

95,711

 

 

 

46,122

 

 

 

95,711

 

Segment operating income (loss)

$

22,609

 

 

$

(91,089

)

 

$

38,841

 

 

$

(2,186

)

Fuels Marketing:

 

 

 

 

 

 

 

 

Product sales

$

125,843

 

 

$

107,996

 

 

$

399,912

 

 

$

306,790

 

Cost of goods

 

116,763

 

 

 

106,478

 

 

 

376,627

 

 

 

300,944

 

Gross margin

 

9,080

 

 

 

1,518

 

 

 

23,285

 

 

 

5,846

 

Operating expenses

 

561

 

 

 

569

 

 

 

1,591

 

 

 

(132

)

Segment operating income

$

8,519

 

 

$

949

 

 

$

21,694

 

 

$

5,978

 

Consolidation and Intersegment Eliminations:

 

 

 

 

 

 

 

 

Revenues

$

 

 

$

 

 

$

(1

)

 

$

(11

)

Cost of goods

 

 

 

 

 

 

 

(1

)

 

 

(11

)

Total

$

 

 

$

 

 

$

 

 

$

 

Consolidated Information:

 

 

 

 

 

 

 

 

Revenues

$

413,243

 

 

$

412,345

 

 

$

1,253,263

 

 

$

1,201,084

 

Costs associated with service revenues:

 

 

 

 

 

 

 

 

Operating expenses

 

91,286

 

 

 

100,143

 

 

 

272,636

 

 

 

287,923

 

Depreciation and amortization expense

 

63,140

 

 

 

66,126

 

 

 

188,683

 

 

 

203,508

 

Total costs associated with service revenues

 

154,426

 

 

 

166,269

 

 

 

461,319

 

 

 

491,431

 

Costs associated with product sales

 

117,324

 

 

 

107,047

 

 

 

378,217

 

 

 

300,801

 

Goodwill impairment loss

 

 

 

 

34,060

 

 

 

 

 

 

34,060

 

Other impairment losses

 

 

 

 

154,908

 

 

 

46,122

 

 

 

154,908

 

Segment operating income (loss)

 

141,493

 

 

 

(49,939

)

 

 

367,605

 

 

 

219,884

 

General and administrative expenses

 

27,676

 

 

 

27,365

 

 

 

82,656

 

 

 

79,334

 

Other depreciation and amortization expense

 

1,935

 

 

 

1,881

 

 

 

5,582

 

 

 

5,841

 

Consolidated operating income (loss)

$

111,882

 

 

$

(79,185

)

 

$

279,367

 

 

$

134,709

 

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. 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 U.S. generally accepted accounting principles (GAAP). Management believes these financial measures provide useful information to investors and other external users of our financial information because (i) they provide additional information about the operating performance of the partnership’s assets and the cash the business is generating, (ii) investors and other external users of our financial statements benefit from having access to the same financial measures being utilized by management and our board of directors when making financial, operational, compensation and planning decisions and (iii) they highlight the impact of significant transactions. We may also adjust these measures to enhance the comparability of our performance across periods.

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 (loss) to EBITDA, DCF and distribution coverage ratio.

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2022

 

2021

 

2022

 

2021

Net income (loss)

$

59,633

 

 

$

(124,933

)

 

$

131,144

 

 

$

(19,293

)

Interest expense, net

 

52,294

 

 

 

53,513

 

 

 

153,053

 

 

 

162,211

 

Income tax expense

 

1,430

 

 

 

685

 

 

 

2,328

 

 

 

3,535

 

Depreciation and amortization expense

 

65,075

 

 

 

68,007

 

 

 

194,265

 

 

 

209,349

 

EBITDA

 

178,432

 

 

 

(2,728

)

 

 

480,790

 

 

 

355,802

 

Interest expense, net

 

(52,294

)

 

 

(53,513

)

 

 

(153,053

)

 

 

(162,211

)

Reliability capital expenditures

 

(11,252

)

 

 

(10,806

)

 

 

(24,657

)

 

 

(28,238

)

Income tax expense

 

(1,430

)

 

 

(685

)

 

 

(2,328

)

 

 

(3,535

)

Long-term incentive equity awards (a)

 

2,534

 

 

 

2,730

 

 

 

8,097

 

 

 

8,737

 

Preferred unit distributions

 

(32,463

)

 

 

(31,889

)

 

 

(95,078

)

 

 

(95,663

)

Goodwill impairment loss

 

 

 

 

34,060

 

 

 

 

 

 

34,060

 

Other impairment losses

 

 

 

 

154,908

 

 

 

46,122

 

 

 

154,908

 

Income tax benefit related to the impairment loss for the nine months ended September 30, 2022

 

 

 

 

 

 

 

(1,144

)

 

 

 

Other items

 

9,958

 

 

 

(10

)

 

 

8,796

 

 

 

6,127

 

DCF

$

93,485

 

 

$

92,067

 

 

$

267,545

 

 

$

269,987

 

 

 

 

 

 

 

 

 

Distributions applicable to common limited partners

$

44,125

 

 

$

43,814

 

 

$

132,418

 

 

$

131,462

 

Distribution coverage ratio (b)

2.12x

 

2.10x

 

2.02x

 

2.05x

(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 per Unit and Ratio 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).

 

For the Four Quarters Ended September 30,

 

For the Four

Quarters Ended

June 30, 2022

 

2022

 

2021

 

Operating income

$

381,112

 

 

$

239,125

 

 

$

190,045

 

Depreciation and amortization expense

 

259,296

 

 

 

280,233

 

 

 

262,228

 

Goodwill impairment loss

 

 

 

 

34,060

 

 

 

34,060

 

Other impairment losses

 

46,122

 

 

 

154,908

 

 

 

201,030

 

Equity awards (a)

 

13,607

 

 

 

13,842

 

 

 

13,801

 

Pro forma effects of dispositions (b)

 

(1,613

)

 

 

(1,802

)

 

 

(10,077

)

Other

 

(15

)

 

 

7,616

 

 

 

481

 

Consolidated EBITDA, as defined in the Revolving Credit Agreement

$

698,509

 

 

$

727,982

 

 

$

691,568

 

 

 

 

 

 

 

Long-term debt, less current portion of finance leases

$

3,068,055

 

 

$

3,400,794

 

 

$

3,137,275

 

Finance leases (long-term)

 

(51,619

)

 

 

(52,834

)

 

 

(51,959

)

Net fair value adjustments, unamortized discounts and unamortized debt issuance costs

 

34,604

 

 

 

39,280

 

 

 

35,924

 

NuStar Logistics' floating rate subordinated notes

 

(402,500

)

 

 

(402,500

)

 

 

(402,500

)

Consolidated Debt, as defined in the Revolving Credit Agreement

$

2,648,540

 

 

$

2,984,740

 

 

$

2,718,740

 

 

 

 

 

 

 

Consolidated Debt Coverage Ratio (Consolidated Debt to Consolidated EBITDA)

3.79x

 

4.10x

 

3.93x

(a)

This adjustment represents the non-cash expense related to the vestings of equity-based awards with the issuance of our common units.

(b)

For the four quarters ended September 30, 2022, this adjustment represents the pro forma effects of the dispositions of the Point Tupper and Eastern U.S. terminals. For the four quarters ended September 30, 2021, this adjustment represents the pro forma effect of the disposition of the Texas City terminals. For the four quarters ended June 30, 2022, this adjustment represents the pro forma effects of the dispositions of the Point Tupper and Eastern U.S. terminals.

The following is a reconciliation of net (loss) income / net (loss) income per common unit to adjusted net income / adjusted net income per common unit, for the applicable periods.

 

Three Months Ended

September 30, 2021

 

Nine Months Ended September 30,

 

 

2022

 

2021

Net (loss) income / net (loss) income per common unit

$

(124,933

)

 

$

(1.48

)

 

$

131,144

 

 

$

0.18

 

 

$

(19,293

)

 

$

(1.18

)

Goodwill impairment loss

 

34,060

 

 

 

0.31

 

 

 

 

 

 

 

 

 

34,060

 

 

 

0.31

 

Other impairment losses

 

154,908

 

 

 

1.41

 

 

 

46,122

 

 

 

0.42

 

 

 

154,908

 

 

 

1.41

 

Gain from insurance recoveries

 

(9,372

)

 

 

(0.08

)

 

 

 

 

 

 

 

 

(9,372

)

 

 

(0.08

)

Gain on sale

 

 

 

 

 

 

 

(1,564

)

 

 

(0.01

)

 

 

 

 

 

 

Income tax benefit related to impairment loss

 

 

 

 

 

 

 

(1,144

)

 

 

(0.01

)

 

 

 

 

 

 

Adjusted net income / adjusted net income per common unit

$

54,663

 

 

$

0.16

 

 

$

174,558

 

 

$

0.58

 

 

$

160,303

 

 

$

0.46

 

NuStar Energy L.P. and Subsidiaries

Reconciliation of Non-GAAP Financial Information - Continued

(Unaudited, Thousands of Dollars)

The following is a reconciliation of EBITDA to adjusted EBITDA, and for the applicable period, to adjusted EBITDA, excluding the Point Tupper terminal and the Eastern U.S. terminals, which were sold in April 2022 and October 2021, respectively.

 

Three Months Ended September 30,

 

2022

2021

EBITDA

$

178,432

 

$

(2,728

)

Goodwill impairment loss

 

 

 

34,060

 

Other impairment losses

 

 

 

154,908

 

Gain from insurance recoveries

 

 

 

(9,372

)

Gain on sale

 

 

 

 

Adjusted EBITDA

$

178,432

 

$

176,868

 

 

 

 

 

Divested assets:

 

 

 

Operating loss

 

 

$

(124,855

)

Depreciation and amortization expense

 

 

 

3,516

 

Other expense, net

 

 

 

(682

)

EBITDA of divested assets

 

 

 

(122,021

)

Goodwill and other impairment losses

 

 

 

129,771

 

Adjusted EBITDA of divested assets

 

 

$

7,750

 

 

 

 

 

Adjusted EBITDA, excluding divested assets

 

 

$

169,118

 

The following is a reconciliation of EBITDA to adjusted EBITDA.

 

Nine Months Ended September 30,

 

2022

 

2021

EBITDA

$

480,790

 

 

$

355,802

 

Goodwill impairment loss

 

 

 

 

34,060

 

Other impairment losses

 

46,122

 

 

 

154,908

 

Gain from insurance recoveries

 

 

 

 

(9,372

)

Gain on sale

 

(1,564

)

 

 

 

Adjusted EBITDA

$

525,348

 

 

$

535,398

 

The following is a reconciliation of projected net income to EBITDA and adjusted EBITDA.

 

Projected for the Year Ended December 31, 2022

Net income

 $

193,000 - 206,000

Interest expense, net

 

205,000 - 215,000

Income tax expense

 

2,500 - 4,500

Depreciation and amortization expense

 

255,000 - 260,000

EBITDA

 

655,500 - 685,500

Gain on sale

 

(1,600)

Impairment loss

 

46,100

Adjusted EBITDA

$

700,000 - 730,000

NuStar Energy L.P. and Subsidiaries

Reconciliation of Non-GAAP Financial Information - Continued

(Unaudited, Thousands of Dollars)

The following are reconciliations for our reported segments of operating income (loss) to segment EBITDA, adjusted segment EBITDA, and for the applicable segment, to adjusted segment EBITDA, excluding the Eastern U.S. terminals and Point Tupper terminal, which were sold in October 2021 and April 2022, respectively.

 

Three Months Ended September 30, 2022

 

Pipeline

 

Storage

 

Fuels Marketing

Operating income

$

110,365

 

$

22,609

 

 

$

8,519

Depreciation and amortization expense

 

44,806

 

 

18,334

 

 

 

Segment EBITDA

$

155,171

 

$

40,943

 

 

$

8,519

 

 

 

 

 

 

 

Three Months Ended September 30, 2021

 

Pipeline

 

Storage

 

Fuels Marketing

Operating income (loss)

$

40,201

 

$

(91,089

)

 

$

949

Depreciation and amortization expense

 

45,506

 

 

20,620

 

 

 

Segment EBITDA

 

85,707

 

 

(70,469

)

 

 

949

Impairment losses

 

59,197

 

 

129,771

 

 

 

Adjusted segment EBITDA

$

144,904

 

$

59,302

 

 

$

949

 

 

 

 

 

 

Divested assets:

 

 

 

 

 

Operating loss

 

 

$

(124,825

)

 

 

Depreciation and amortization expense

 

 

 

3,516

 

 

 

Segment EBITDA of divested assets

 

 

 

(121,309

)

 

 

Impairment losses

 

 

 

129,771

 

 

 

Adjusted segment EBITDA of divested assets

 

 

$

8,462

 

 

 

 

 

 

 

 

 

Adjusted segment EBITDA, excluding divested assets

 

 

$

50,840

 

 

 

 

Contacts

Investors, Pam Schmidt, Vice President, Investor Relations

Investor Relations: 210-918-INVR (4687)

or

Media, Mary Rose Brown, Executive Vice President and Chief Administrative Officer,

Corporate Communications: 210-918-2314 / 210-410-8926

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 DalyCity.com & California Media Partners, LLC. All rights reserved.