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x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the quarterly period ended September 30, 2015
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from _______ to _______
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Delaware
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74-2956831
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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|
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19003 IH-10 West
San Antonio, Texas
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78257
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer
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x
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Accelerated filer
|
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o
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|
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Non-accelerated filer
|
|
o
(Do not check if a smaller reporting company)
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Smaller reporting company
|
|
o
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|
|
|
|
|
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||
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Item 1.
|
|
|
|
|
|
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||
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|
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||
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|
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Item 2.
|
||
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Item 3.
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||
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Item 4.
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||
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||
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Item 2.
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||
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Item 6.
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||
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Item 1.
|
Financial Statements
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
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2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Service revenues
|
$
|
288,574
|
|
|
$
|
266,651
|
|
|
$
|
833,128
|
|
|
$
|
755,551
|
|
Product sales
|
204,992
|
|
|
527,771
|
|
|
785,993
|
|
|
1,637,829
|
|
||||
Total revenues
|
493,566
|
|
|
794,422
|
|
|
1,619,121
|
|
|
2,393,380
|
|
||||
Costs and expenses:
|
|
|
|
|
|
|
|
||||||||
Cost of product sales
|
193,958
|
|
|
509,794
|
|
|
738,074
|
|
|
1,578,508
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
||||||||
Third parties
|
87,730
|
|
|
84,570
|
|
|
254,658
|
|
|
246,541
|
|
||||
Related party
|
34,904
|
|
|
31,394
|
|
|
100,761
|
|
|
91,025
|
|
||||
Total operating expenses
|
122,634
|
|
|
115,964
|
|
|
355,419
|
|
|
337,566
|
|
||||
General and administrative expenses:
|
|
|
|
|
|
|
|
||||||||
Third parties
|
8,535
|
|
|
7,567
|
|
|
25,188
|
|
|
20,044
|
|
||||
Related party
|
15,144
|
|
|
17,400
|
|
|
50,237
|
|
|
48,942
|
|
||||
Total general and administrative expenses
|
23,679
|
|
|
24,967
|
|
|
75,425
|
|
|
68,986
|
|
||||
Depreciation and amortization expense
|
52,301
|
|
|
48,599
|
|
|
157,523
|
|
|
142,765
|
|
||||
Total costs and expenses
|
392,572
|
|
|
699,324
|
|
|
1,326,441
|
|
|
2,127,825
|
|
||||
Operating income
|
100,994
|
|
|
95,098
|
|
|
292,680
|
|
|
265,555
|
|
||||
Equity in earnings of joint ventures
|
—
|
|
|
2,749
|
|
|
—
|
|
|
1,737
|
|
||||
Interest expense, net
|
(33,448
|
)
|
|
(33,007
|
)
|
|
(98,309
|
)
|
|
(100,546
|
)
|
||||
Interest income from related party
|
—
|
|
|
—
|
|
|
—
|
|
|
1,055
|
|
||||
Other income (expense), net
|
1,776
|
|
|
(1,388
|
)
|
|
61,892
|
|
|
1,816
|
|
||||
Income from continuing operations before income tax
expense
|
69,322
|
|
|
63,452
|
|
|
256,263
|
|
|
169,617
|
|
||||
Income tax expense
|
4,306
|
|
|
4,335
|
|
|
9,797
|
|
|
10,317
|
|
||||
Income from continuing operations
|
65,016
|
|
|
59,117
|
|
|
246,466
|
|
|
159,300
|
|
||||
Income (loss) from discontinued operations, net of tax
|
—
|
|
|
2,831
|
|
|
774
|
|
|
(2,316
|
)
|
||||
Net income
|
65,016
|
|
|
61,948
|
|
|
247,240
|
|
|
156,984
|
|
||||
Less net loss attributable to noncontrolling interest
|
—
|
|
|
(173
|
)
|
|
—
|
|
|
(395
|
)
|
||||
Net income attributable to NuStar Energy L.P.
|
$
|
65,016
|
|
|
$
|
62,121
|
|
|
$
|
247,240
|
|
|
$
|
157,379
|
|
Net income (loss) per unit applicable to limited partners:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
0.68
|
|
|
$
|
0.61
|
|
|
$
|
2.68
|
|
|
$
|
1.59
|
|
Discontinued operations
|
—
|
|
|
0.03
|
|
|
0.01
|
|
|
(0.03
|
)
|
||||
Total
(Note 10)
|
$
|
0.68
|
|
|
$
|
0.64
|
|
|
$
|
2.69
|
|
|
$
|
1.56
|
|
Weighted-average limited partner units outstanding
|
77,886,078
|
|
|
77,886,078
|
|
|
77,886,078
|
|
|
77,886,078
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Comprehensive income
|
$
|
38,878
|
|
|
$
|
58,167
|
|
|
$
|
231,843
|
|
|
$
|
159,811
|
|
Less comprehensive loss attributable to
noncontrolling interest
|
—
|
|
|
(159
|
)
|
|
—
|
|
|
(828
|
)
|
||||
Comprehensive income attributable to
NuStar Energy L.P.
|
$
|
38,878
|
|
|
$
|
58,326
|
|
|
$
|
231,843
|
|
|
$
|
160,639
|
|
|
Nine Months Ended September 30,
|
||||||
|
2015
|
|
2014
|
||||
Cash Flows from Operating Activities:
|
|
|
|
||||
Net income
|
$
|
247,240
|
|
|
$
|
156,984
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization expense
|
157,523
|
|
|
142,765
|
|
||
Amortization of debt related items
|
6,693
|
|
|
7,015
|
|
||
Gain from sale or disposition of assets
|
(1,632
|
)
|
|
(3,840
|
)
|
||
Gain associated with the Linden Acquisition
|
(56,277
|
)
|
|
—
|
|
||
Asset impairment loss
|
—
|
|
|
2,067
|
|
||
Deferred income tax expense
|
626
|
|
|
2,453
|
|
||
Equity in earnings of joint ventures
|
—
|
|
|
(1,737
|
)
|
||
Distributions of equity in earnings of joint ventures
|
2,500
|
|
|
5,879
|
|
||
Changes in current assets and current liabilities (Note 11)
|
19,803
|
|
|
1,080
|
|
||
Other, net
|
(352
|
)
|
|
2,529
|
|
||
Net cash provided by operating activities
|
376,124
|
|
|
315,195
|
|
||
Cash Flows from Investing Activities:
|
|
|
|
||||
Capital expenditures
|
(240,671
|
)
|
|
(229,548
|
)
|
||
Change in accounts payable related to capital expenditures
|
(7,802
|
)
|
|
10,910
|
|
||
Acquisitions
|
(142,500
|
)
|
|
—
|
|
||
Increase in other long-term assets
|
(3,587
|
)
|
|
—
|
|
||
Proceeds from sale or disposition of assets
|
17,125
|
|
|
25,975
|
|
||
Increase in note receivable from Axeon
|
—
|
|
|
(13,328
|
)
|
||
Other, net
|
—
|
|
|
(853
|
)
|
||
Net cash used in investing activities
|
(377,435
|
)
|
|
(206,844
|
)
|
||
Cash Flows from Financing Activities:
|
|
|
|
||||
Proceeds from long-term debt borrowings
|
747,779
|
|
|
537,436
|
|
||
Proceeds from short-term debt borrowings
|
622,000
|
|
|
205,200
|
|
||
Long-term debt repayments
|
(365,410
|
)
|
|
(451,269
|
)
|
||
Short-term debt repayments
|
(657,000
|
)
|
|
(183,800
|
)
|
||
Distributions to unitholders and general partner
|
(294,153
|
)
|
|
(294,153
|
)
|
||
(Decrease) increase in cash book overdrafts
|
(12,281
|
)
|
|
3,470
|
|
||
Other, net
|
(792
|
)
|
|
(930
|
)
|
||
Net cash provided by (used in) financing activities
|
40,143
|
|
|
(184,046
|
)
|
||
Effect of foreign exchange rate changes on cash
|
(10,319
|
)
|
|
638
|
|
||
Net increase (decrease) in cash and cash equivalents
|
28,513
|
|
|
(75,057
|
)
|
||
Cash and cash equivalents as of the beginning of the period
|
87,912
|
|
|
100,743
|
|
||
Cash and cash equivalents as of the end of the period
|
$
|
116,425
|
|
|
$
|
25,686
|
|
Cash paid for the Linden Acquisition
|
$
|
142,500
|
|
Fair value of liabilities assumed
|
22,865
|
|
|
Consideration
|
165,365
|
|
|
Acquisition date fair value of previously held equity interest
|
128,000
|
|
|
Total
|
$
|
293,365
|
|
|
|
||
Current assets
|
$
|
1,746
|
|
Property, plant and equipment
|
134,484
|
|
|
Goodwill
|
86,975
|
|
|
Intangible assets (a)
|
70,050
|
|
|
Other long-term assets
|
110
|
|
|
Purchase price allocation
|
$
|
293,365
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
(Thousands of Dollars)
|
||||||||||||||
Revenues
|
$
|
—
|
|
|
$
|
276
|
|
|
$
|
208
|
|
|
$
|
3,456
|
|
Income (loss) before income tax expense
|
$
|
—
|
|
|
$
|
2,831
|
|
|
$
|
774
|
|
|
$
|
(2,316
|
)
|
|
September 30,
2015 |
|
December 31,
2014 |
||||
|
(Thousands of Dollars)
|
||||||
Crude oil
|
$
|
2,326
|
|
|
$
|
3,527
|
|
Finished products
|
42,721
|
|
|
43,206
|
|
||
Materials and supplies
|
8,829
|
|
|
8,980
|
|
||
Total
|
$
|
53,876
|
|
|
$
|
55,713
|
|
|
September 30, 2015
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
(Thousands of Dollars)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Other current assets:
|
|
|
|
|
|
|
|
||||||||
Product imbalances
|
$
|
462
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
462
|
|
Commodity derivatives
|
7,927
|
|
|
1,181
|
|
|
—
|
|
|
9,108
|
|
||||
Other long-term assets, net:
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
—
|
|
|
2,925
|
|
|
—
|
|
|
2,925
|
|
||||
Total
|
$
|
8,389
|
|
|
$
|
4,106
|
|
|
$
|
—
|
|
|
$
|
12,495
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Accrued liabilities:
|
|
|
|
|
|
|
|
||||||||
Product imbalances
|
$
|
(1,592
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1,592
|
)
|
Commodity derivatives
|
—
|
|
|
(1,041
|
)
|
|
—
|
|
|
(1,041
|
)
|
||||
Other long-term liabilities:
|
|
|
|
|
|
|
|
||||||||
Guarantee liability
|
—
|
|
|
—
|
|
|
(1,286
|
)
|
|
(1,286
|
)
|
||||
Interest rate swaps
|
—
|
|
|
(929
|
)
|
|
—
|
|
|
(929
|
)
|
||||
Total
|
$
|
(1,592
|
)
|
|
$
|
(1,970
|
)
|
|
$
|
(1,286
|
)
|
|
$
|
(4,848
|
)
|
|
December 31, 2014
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
(Thousands of Dollars)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Other current assets:
|
|
|
|
|
|
|
|
||||||||
Product imbalances
|
$
|
117
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
117
|
|
Commodity derivatives
|
11,009
|
|
|
5,353
|
|
|
—
|
|
|
16,362
|
|
||||
Total
|
$
|
11,126
|
|
|
$
|
5,353
|
|
|
$
|
—
|
|
|
$
|
16,479
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Accrued liabilities:
|
|
|
|
|
|
|
|
||||||||
Product imbalances
|
$
|
(1,388
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1,388
|
)
|
Commodity derivatives
|
—
|
|
|
(4,623
|
)
|
|
—
|
|
|
(4,623
|
)
|
||||
Other long-term liabilities:
|
|
|
|
|
|
|
|
||||||||
Guarantee liability
|
—
|
|
|
—
|
|
|
(580
|
)
|
|
(580
|
)
|
||||
Total
|
$
|
(1,388
|
)
|
|
$
|
(4,623
|
)
|
|
$
|
(580
|
)
|
|
$
|
(6,591
|
)
|
|
Nine Months Ended September 30, 2015
|
||
|
(Thousands of Dollars)
|
||
Beginning balance
|
$
|
580
|
|
Adjustments to guarantee liability
|
706
|
|
|
Ending balance
|
$
|
1,286
|
|
|
September 30, 2015
|
|
December 31, 2014
|
||||||||||||
|
Fair Value
|
|
Carrying Amount
|
|
Fair Value
|
|
Carrying Amount
|
||||||||
|
(Thousands of Dollars)
|
||||||||||||||
Long-term debt
|
$
|
3,073,330
|
|
|
$
|
3,109,359
|
|
|
$
|
2,764,242
|
|
|
$
|
2,749,452
|
|
Axeon Term Loan
|
$
|
169,607
|
|
|
$
|
169,941
|
|
|
$
|
164,386
|
|
|
$
|
169,235
|
|
|
|
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||||||
|
Balance Sheet Location
|
|
September 30,
2015 |
|
December 31, 2014
|
|
September 30,
2015 |
|
December 31, 2014
|
||||||||
|
|
|
(Thousands of Dollars)
|
||||||||||||||
Derivatives Designated as
Hedging Instruments:
|
|
|
|
|
|
|
|
|
|
||||||||
Commodity contracts
|
Other current assets
|
|
$
|
1,262
|
|
|
$
|
5,609
|
|
|
$
|
(261
|
)
|
|
$
|
—
|
|
Interest rate swaps - cash flow hedges
|
Other long-term assets, net
|
|
2,925
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Interest rate swaps - cash flow hedges
|
Other long-term liabilities
|
|
—
|
|
|
—
|
|
|
(929
|
)
|
|
—
|
|
||||
Total
|
|
|
4,187
|
|
|
5,609
|
|
|
(1,190
|
)
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
Derivatives Not Designated
as Hedging Instruments:
|
|
|
|
|
|
|
|
|
|
||||||||
Commodity contracts
|
Other current assets
|
|
15,922
|
|
|
38,704
|
|
|
(7,815
|
)
|
|
(27,951
|
)
|
||||
Commodity contracts
|
Accrued liabilities
|
|
4,272
|
|
|
13,081
|
|
|
(5,313
|
)
|
|
(17,704
|
)
|
||||
Total
|
|
|
20,194
|
|
|
51,785
|
|
|
(13,128
|
)
|
|
(45,655
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
Total Derivatives
|
|
|
$
|
24,381
|
|
|
$
|
57,394
|
|
|
$
|
(14,318
|
)
|
|
$
|
(45,655
|
)
|
Commodity Contracts
|
|
September 30,
2015 |
|
December 31, 2014
|
||||
|
|
(Thousands of Dollars)
|
||||||
Net amounts of assets presented in the consolidated balance sheets
|
|
$
|
9,108
|
|
|
$
|
16,362
|
|
Net amounts of liabilities presented in the consolidated balance sheets
|
|
$
|
(1,041
|
)
|
|
$
|
(4,623
|
)
|
Derivatives Designated as Fair Value Hedging Instruments
|
|
Income Statement
Location
|
|
Amount of Gain
(Loss) Recognized
in Income on
Derivative
(Effective Portion)
|
|
Amount of Gain
(Loss)
Recognized in
Income on
Hedged Item
|
|
Amount of Gain
(Loss) Recognized
in Income on
Derivative
(Ineffective Portion)
|
||||||
|
|
|
|
(Thousands of Dollars)
|
||||||||||
Three months ended September 30, 2015:
|
|
|
|
|
|
|
|
|
||||||
Commodity contracts
|
|
Cost of product sales
|
|
$
|
16,005
|
|
|
$
|
(15,479
|
)
|
|
$
|
526
|
|
|
|
|
|
|
|
|
|
|
||||||
Three months ended September 30, 2014:
|
|
|
|
|
|
|
|
|
||||||
Commodity contracts
|
|
Cost of product sales
|
|
$
|
1,219
|
|
|
$
|
(1,058
|
)
|
|
$
|
161
|
|
|
|
|
|
|
|
|
|
|
||||||
Nine months ended September 30, 2015:
|
|
|
|
|
|
|
|
|
||||||
Commodity contracts
|
|
Cost of product sales
|
|
$
|
11,506
|
|
|
$
|
(8,748
|
)
|
|
$
|
2,758
|
|
|
|
|
|
|
|
|
|
|
||||||
Nine months ended September 30, 2014:
|
|
|
|
|
|
|
|
|
||||||
Commodity contracts
|
|
Cost of product sales
|
|
$
|
2,178
|
|
|
$
|
(2,840
|
)
|
|
$
|
(662
|
)
|
Derivatives Designated as Cash Flow Hedging Instruments
|
|
Amount of Gain
(Loss) Recognized
in Other Comprehensive Income on Derivative(Effective Portion)
|
|
Amount of Gain
(Loss) Reclassified
from AOCI
into Interest expense, net
(Effective Portion) (a)
|
||||
|
|
(Thousands of Dollars)
|
||||||
Three months ended September 30, 2015:
|
|
|
|
|
||||
Interest rate swaps
|
|
$
|
(16,757
|
)
|
|
$
|
—
|
|
Unwound interest rate swaps
|
|
—
|
|
|
(2,405
|
)
|
||
|
|
|
|
|
||||
Three months ended September 30, 2014:
|
|
|
|
|
||||
Unwound interest rate swaps
|
|
$
|
—
|
|
|
$
|
(2,625
|
)
|
|
|
|
|
|
||||
Nine months ended September 30, 2015:
|
|
|
|
|
||||
Interest rate swaps
|
|
$
|
1,996
|
|
|
$
|
—
|
|
Unwound interest rate swaps
|
|
—
|
|
|
(7,449
|
)
|
||
|
|
|
|
|
||||
Nine months ended September 30, 2014:
|
|
|
|
|
||||
Unwound interest rate swaps
|
|
$
|
—
|
|
|
$
|
(8,062
|
)
|
(a)
|
As of
September 30, 2015
, we expect to reclassify a loss of
$8.7 million
to “Interest expense, net” within the next twelve months associated with unwound forward-starting interest rate swaps.
|
Derivatives Not Designated as Hedging Instruments
|
|
Income Statement Location
|
|
Amount of Gain (Loss)
Recognized in Income
|
||
|
|
|
|
(Thousands of Dollars)
|
||
Three months ended September 30, 2015:
|
|
|
|
|
||
Commodity contracts
|
|
Cost of product sales
|
|
$
|
1,151
|
|
|
|
|
|
|
||
Three months ended September 30, 2014:
|
|
|
|
|
||
Commodity contracts
|
|
Cost of product sales
|
|
$
|
6,680
|
|
|
|
|
|
|
||
Nine months ended September 30, 2015:
|
|
|
|
|
||
Commodity contracts
|
|
Cost of product sales
|
|
$
|
1,142
|
|
|
|
|
|
|
||
Nine months ended September 30, 2014:
|
|
|
|
|
||
Commodity contracts
|
|
Cost of product sales
|
|
$
|
2,270
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
(Thousands of Dollars)
|
||||||||||||||
Revenues
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
929
|
|
Operating expenses
|
$
|
34,904
|
|
|
$
|
31,394
|
|
|
$
|
100,761
|
|
|
$
|
91,025
|
|
General and administrative expenses
|
$
|
15,144
|
|
|
$
|
17,400
|
|
|
$
|
50,237
|
|
|
$
|
48,942
|
|
Interest income
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,055
|
|
Revenues included in discontinued operations, net of tax
|
$
|
—
|
|
|
$
|
36
|
|
|
$
|
—
|
|
|
$
|
528
|
|
Expenses included in discontinued operations, net of tax
|
$
|
—
|
|
|
$
|
184
|
|
|
$
|
2
|
|
|
$
|
1,596
|
|
|
Three Months Ended September 30, 2015
|
|
Three Months Ended September 30, 2014
|
||||||||||||
|
Total Partners’
Equity
|
|
NuStar Energy L.P. Partners’ Equity
|
|
Noncontrolling Interest
|
|
Total Partners’
Equity
|
||||||||
|
(Thousands of Dollars)
|
||||||||||||||
Beginning balance
|
$
|
1,713,073
|
|
|
$
|
1,808,370
|
|
|
$
|
989
|
|
|
$
|
1,809,359
|
|
Net income (loss)
|
65,016
|
|
|
62,121
|
|
|
(173
|
)
|
|
61,948
|
|
||||
Other comprehensive (loss) income:
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation
adjustment
|
(11,786
|
)
|
|
(6,420
|
)
|
|
14
|
|
|
(6,406
|
)
|
||||
Net unrealized loss on cash flow
hedges
|
(16,757
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net loss on cash flow hedges
reclassified into interest expense, net
|
2,405
|
|
|
2,625
|
|
|
—
|
|
|
2,625
|
|
||||
Total other comprehensive
(loss) income
|
(26,138
|
)
|
|
(3,795
|
)
|
|
14
|
|
|
(3,781
|
)
|
||||
Cash distributions to partners
|
(98,051
|
)
|
|
(98,051
|
)
|
|
—
|
|
|
(98,051
|
)
|
||||
Other
|
—
|
|
|
—
|
|
|
(830
|
)
|
|
(830
|
)
|
||||
Ending balance
|
$
|
1,653,900
|
|
|
$
|
1,768,645
|
|
|
$
|
—
|
|
|
$
|
1,768,645
|
|
|
Nine Months Ended September 30, 2015
|
|
Nine Months Ended September 30, 2014
|
||||||||||||
|
Total Partners’
Equity
|
|
NuStar Energy L.P. Partners’ Equity
|
|
Noncontrolling Interest
|
|
Total Partners’
Equity
|
||||||||
|
(Thousands of Dollars)
|
||||||||||||||
Beginning balance
|
$
|
1,716,210
|
|
|
$
|
1,902,136
|
|
|
$
|
1,658
|
|
|
$
|
1,903,794
|
|
Net income (loss)
|
247,240
|
|
|
157,379
|
|
|
(395
|
)
|
|
156,984
|
|
||||
Other comprehensive (loss) income:
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation
adjustment
|
(24,842
|
)
|
|
(4,802
|
)
|
|
(433
|
)
|
|
(5,235
|
)
|
||||
Net unrealized gain on cash flow
hedges
|
1,996
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net loss on cash flow hedges
reclassified into interest expense, net
|
7,449
|
|
|
8,062
|
|
|
—
|
|
|
8,062
|
|
||||
Total other comprehensive
(loss) income
|
(15,397
|
)
|
|
3,260
|
|
|
(433
|
)
|
|
2,827
|
|
||||
Cash distributions to partners
|
(294,153
|
)
|
|
(294,153
|
)
|
|
—
|
|
|
(294,153
|
)
|
||||
Other
|
—
|
|
|
23
|
|
|
(830
|
)
|
|
(807
|
)
|
||||
Ending balance
|
$
|
1,653,900
|
|
|
$
|
1,768,645
|
|
|
$
|
—
|
|
|
$
|
1,768,645
|
|
|
Foreign
Currency
Translation
|
|
Cash Flow Hedges
|
|
Total
|
||||||
|
(Thousands of Dollars)
|
||||||||||
Balance as of January 1, 2015
|
$
|
(28,839
|
)
|
|
$
|
(39,073
|
)
|
|
$
|
(67,912
|
)
|
Activity
|
(24,842
|
)
|
|
9,445
|
|
|
(15,397
|
)
|
|||
Balance as of September 30, 2015
|
$
|
(53,681
|
)
|
|
$
|
(29,628
|
)
|
|
$
|
(83,309
|
)
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
(Thousands of Dollars)
|
||||||||||||||
Net income attributable to NuStar Energy L.P.
|
$
|
65,016
|
|
|
$
|
62,121
|
|
|
$
|
247,240
|
|
|
$
|
157,379
|
|
Less general partner incentive distribution
|
10,805
|
|
|
10,805
|
|
|
32,415
|
|
|
32,415
|
|
||||
Net income after general partner incentive distribution
|
54,211
|
|
|
51,316
|
|
|
214,825
|
|
|
124,964
|
|
||||
General partner interest
|
2
|
%
|
|
2
|
%
|
|
2
|
%
|
|
2
|
%
|
||||
General partner allocation of net income after general
partner incentive distribution
|
1,084
|
|
|
1,025
|
|
|
4,297
|
|
|
2,498
|
|
||||
General partner incentive distribution
|
10,805
|
|
|
10,805
|
|
|
32,415
|
|
|
32,415
|
|
||||
Net income applicable to general partner
|
$
|
11,889
|
|
|
$
|
11,830
|
|
|
$
|
36,712
|
|
|
$
|
34,913
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
(Thousands of Dollars, Except Per Unit Data)
|
||||||||||||||
General partner interest
|
$
|
1,961
|
|
|
$
|
1,961
|
|
|
$
|
5,883
|
|
|
$
|
5,883
|
|
General partner incentive distribution
|
10,805
|
|
|
10,805
|
|
|
32,415
|
|
|
32,415
|
|
||||
Total general partner distribution
|
12,766
|
|
|
12,766
|
|
|
38,298
|
|
|
38,298
|
|
||||
Limited partners’ distribution
|
85,285
|
|
|
85,285
|
|
|
255,855
|
|
|
255,855
|
|
||||
Total cash distributions
|
$
|
98,051
|
|
|
$
|
98,051
|
|
|
$
|
294,153
|
|
|
$
|
294,153
|
|
|
|
|
|
|
|
|
|
||||||||
Cash distributions per unit applicable to limited partners
|
$
|
1.095
|
|
|
$
|
1.095
|
|
|
$
|
3.285
|
|
|
$
|
3.285
|
|
Quarter Ended
|
|
Cash Distributions Per Unit
|
|
Total Cash Distributions
|
|
Record Date
|
|
Payment Date
|
||||
|
|
|
|
(Thousands of Dollars)
|
|
|
|
|
||||
September 30, 2015 (a)
|
|
$
|
1.095
|
|
|
$
|
98,051
|
|
|
November 9, 2015
|
|
November 13, 2015
|
June 30, 2015
|
|
$
|
1.095
|
|
|
$
|
98,051
|
|
|
August 7, 2015
|
|
August 13, 2015
|
March 31, 2015
|
|
$
|
1.095
|
|
|
$
|
98,051
|
|
|
May 8, 2015
|
|
May 14, 2015
|
December 31, 2014
|
|
$
|
1.095
|
|
|
$
|
98,051
|
|
|
February 9, 2015
|
|
February 13, 2015
|
(a)
|
The distribution was announced on
October 30, 2015
.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
(Thousands of Dollars, Except Unit and Per Unit Data)
|
||||||||||||||
Net income attributable to NuStar Energy L.P.
|
$
|
65,016
|
|
|
$
|
62,121
|
|
|
$
|
247,240
|
|
|
$
|
157,379
|
|
Less general partner distribution (including incentive
distribution rights)
|
12,766
|
|
|
12,766
|
|
|
38,298
|
|
|
38,298
|
|
||||
Less limited partner distribution
|
85,285
|
|
|
85,285
|
|
|
255,855
|
|
|
255,855
|
|
||||
Distributions in excess of earnings
|
$
|
(33,035
|
)
|
|
$
|
(35,930
|
)
|
|
$
|
(46,913
|
)
|
|
$
|
(136,774
|
)
|
|
|
|
|
|
|
|
|
||||||||
General partner earnings:
|
|
|
|
|
|
|
|
||||||||
Distributions
|
$
|
12,766
|
|
|
$
|
12,766
|
|
|
$
|
38,298
|
|
|
$
|
38,298
|
|
Allocation of distributions in excess of earnings (2%)
|
(661
|
)
|
|
(719
|
)
|
|
(939
|
)
|
|
(2,736
|
)
|
||||
Total
|
$
|
12,105
|
|
|
$
|
12,047
|
|
|
$
|
37,359
|
|
|
$
|
35,562
|
|
|
|
|
|
|
|
|
|
||||||||
Limited partner earnings:
|
|
|
|
|
|
|
|
||||||||
Distributions
|
$
|
85,285
|
|
|
$
|
85,285
|
|
|
$
|
255,855
|
|
|
$
|
255,855
|
|
Allocation of distributions in excess of earnings (98%)
|
(32,374
|
)
|
|
(35,211
|
)
|
|
(45,974
|
)
|
|
(134,038
|
)
|
||||
Total
|
$
|
52,911
|
|
|
$
|
50,074
|
|
|
$
|
209,881
|
|
|
$
|
121,817
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average limited partner units outstanding
|
77,886,078
|
|
|
77,886,078
|
|
|
77,886,078
|
|
|
77,886,078
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income per unit applicable to limited partners
|
$
|
0.68
|
|
|
$
|
0.64
|
|
|
$
|
2.69
|
|
|
$
|
1.56
|
|
|
Nine Months Ended September 30,
|
||||||
|
2015
|
|
2014
|
||||
|
(Thousands of Dollars)
|
||||||
Decrease (increase) in current assets:
|
|
|
|
||||
Accounts receivable
|
$
|
75,532
|
|
|
$
|
60,010
|
|
Receivable from related parties
|
—
|
|
|
51,037
|
|
||
Inventories
|
1,654
|
|
|
19,865
|
|
||
Other current assets
|
1,660
|
|
|
(1,302
|
)
|
||
Increase (decrease) in current liabilities:
|
|
|
|
||||
Accounts payable
|
(45,626
|
)
|
|
(134,932
|
)
|
||
Payable to related party
|
743
|
|
|
5,841
|
|
||
Accrued interest payable
|
(5,424
|
)
|
|
(5,611
|
)
|
||
Accrued liabilities
|
(12,338
|
)
|
|
807
|
|
||
Taxes other than income tax
|
3,239
|
|
|
5,319
|
|
||
Income tax payable
|
363
|
|
|
46
|
|
||
Changes in current assets and current liabilities
|
$
|
19,803
|
|
|
$
|
1,080
|
|
|
Nine Months Ended September 30,
|
||||||
|
2015
|
|
2014
|
||||
|
(Thousands of Dollars)
|
||||||
Cash paid for interest, net of amount capitalized
|
$
|
105,340
|
|
|
$
|
103,832
|
|
Cash paid for income taxes, net of tax refunds received
|
$
|
8,987
|
|
|
$
|
9,826
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
(Thousands of Dollars)
|
||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Pipeline
|
$
|
131,395
|
|
|
$
|
125,461
|
|
|
$
|
378,030
|
|
|
$
|
346,218
|
|
Storage:
|
|
|
|
|
|
|
|
||||||||
Third parties
|
155,475
|
|
|
137,771
|
|
|
450,372
|
|
|
400,421
|
|
||||
Intersegment
|
6,628
|
|
|
6,174
|
|
|
19,707
|
|
|
20,147
|
|
||||
Related party
|
—
|
|
|
—
|
|
|
—
|
|
|
929
|
|
||||
Total storage
|
162,103
|
|
|
143,945
|
|
|
470,079
|
|
|
421,497
|
|
||||
Fuels Marketing
|
206,696
|
|
|
531,190
|
|
|
790,719
|
|
|
1,645,812
|
|
||||
Consolidation and intersegment eliminations
|
(6,628
|
)
|
|
(6,174
|
)
|
|
(19,707
|
)
|
|
(20,147
|
)
|
||||
Total revenues
|
$
|
493,566
|
|
|
$
|
794,422
|
|
|
$
|
1,619,121
|
|
|
$
|
2,393,380
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income:
|
|
|
|
|
|
|
|
||||||||
Pipeline
|
$
|
68,536
|
|
|
$
|
65,652
|
|
|
$
|
201,996
|
|
|
$
|
178,878
|
|
Storage
|
59,986
|
|
|
49,401
|
|
|
161,715
|
|
|
141,415
|
|
||||
Fuels marketing
|
(1,819
|
)
|
|
7,518
|
|
|
10,756
|
|
|
21,897
|
|
||||
Consolidation and intersegment eliminations
|
(1
|
)
|
|
(25
|
)
|
|
41
|
|
|
(35
|
)
|
||||
Total segment operating income
|
126,702
|
|
|
122,546
|
|
|
374,508
|
|
|
342,155
|
|
||||
General and administrative expenses
|
23,679
|
|
|
24,967
|
|
|
75,425
|
|
|
68,986
|
|
||||
Other depreciation and amortization expense
|
2,029
|
|
|
2,481
|
|
|
6,403
|
|
|
7,614
|
|
||||
Total operating income
|
$
|
100,994
|
|
|
$
|
95,098
|
|
|
$
|
292,680
|
|
|
$
|
265,555
|
|
|
September 30,
2015 |
|
December 31,
2014 |
||||
|
(Thousands of Dollars)
|
||||||
Pipeline
|
$
|
2,029,115
|
|
|
$
|
1,962,821
|
|
Storage
|
2,445,403
|
|
|
2,241,573
|
|
||
Fuels marketing
|
156,434
|
|
|
227,642
|
|
||
Total segment assets
|
4,630,952
|
|
|
4,432,036
|
|
||
Other partnership assets
|
504,179
|
|
|
486,760
|
|
||
Total consolidated assets
|
$
|
5,135,131
|
|
|
$
|
4,918,796
|
|
|
NuStar
Energy
|
|
NuStar
Logistics
|
|
NuPOP
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
885
|
|
|
$
|
931
|
|
|
$
|
—
|
|
|
$
|
114,609
|
|
|
$
|
—
|
|
|
$
|
116,425
|
|
Receivables, net
|
—
|
|
|
465
|
|
|
—
|
|
|
133,508
|
|
|
—
|
|
|
133,973
|
|
||||||
Inventories
|
—
|
|
|
2,157
|
|
|
3,669
|
|
|
48,050
|
|
|
—
|
|
|
53,876
|
|
||||||
Other current assets
|
109
|
|
|
15,015
|
|
|
1,307
|
|
|
17,652
|
|
|
—
|
|
|
34,083
|
|
||||||
Intercompany receivable
|
—
|
|
|
1,591,877
|
|
|
—
|
|
|
—
|
|
|
(1,591,877
|
)
|
|
—
|
|
||||||
Total current assets
|
994
|
|
|
1,610,445
|
|
|
4,976
|
|
|
313,819
|
|
|
(1,591,877
|
)
|
|
338,357
|
|
||||||
Property, plant and equipment, net
|
—
|
|
|
1,895,471
|
|
|
569,231
|
|
|
1,191,571
|
|
|
—
|
|
|
3,656,273
|
|
||||||
Intangible assets, net
|
—
|
|
|
50,671
|
|
|
—
|
|
|
64,800
|
|
|
—
|
|
|
115,471
|
|
||||||
Goodwill
|
—
|
|
|
149,453
|
|
|
170,652
|
|
|
384,299
|
|
|
—
|
|
|
704,404
|
|
||||||
Investment in wholly owned
subsidiaries
|
2,244,115
|
|
|
47,686
|
|
|
1,020,841
|
|
|
933,458
|
|
|
(4,246,100
|
)
|
|
—
|
|
||||||
Deferred income tax asset
|
—
|
|
|
—
|
|
|
—
|
|
|
4,323
|
|
|
(1,179
|
)
|
|
3,144
|
|
||||||
Other long-term assets, net
|
799
|
|
|
275,954
|
|
|
26,329
|
|
|
14,400
|
|
|
—
|
|
|
317,482
|
|
||||||
Total assets
|
$
|
2,245,908
|
|
|
$
|
4,029,680
|
|
|
$
|
1,792,029
|
|
|
$
|
2,906,670
|
|
|
$
|
(5,839,156
|
)
|
|
$
|
5,135,131
|
|
Liabilities and Partners’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Payables
|
$
|
26
|
|
|
$
|
41,513
|
|
|
$
|
11,348
|
|
|
$
|
61,414
|
|
|
$
|
—
|
|
|
$
|
114,301
|
|
Short-term debt
|
—
|
|
|
42,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42,000
|
|
||||||
Accrued interest payable
|
—
|
|
|
27,902
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
27,921
|
|
||||||
Accrued liabilities
|
962
|
|
|
24,005
|
|
|
7,199
|
|
|
18,636
|
|
|
—
|
|
|
50,802
|
|
||||||
Taxes other than income tax
|
63
|
|
|
6,527
|
|
|
4,506
|
|
|
6,464
|
|
|
—
|
|
|
17,560
|
|
||||||
Income tax payable
|
—
|
|
|
288
|
|
|
6
|
|
|
2,495
|
|
|
—
|
|
|
2,789
|
|
||||||
Intercompany payable
|
507,648
|
|
|
—
|
|
|
826,286
|
|
|
257,943
|
|
|
(1,591,877
|
)
|
|
—
|
|
||||||
Total current liabilities
|
508,699
|
|
|
142,235
|
|
|
849,345
|
|
|
346,971
|
|
|
(1,591,877
|
)
|
|
255,373
|
|
||||||
Long-term debt
|
—
|
|
|
3,052,459
|
|
|
—
|
|
|
56,900
|
|
|
—
|
|
|
3,109,359
|
|
||||||
Long-term payable to related party
|
—
|
|
|
25,107
|
|
|
—
|
|
|
5,443
|
|
|
—
|
|
|
30,550
|
|
||||||
Deferred income tax liability
|
—
|
|
|
1,143
|
|
|
36
|
|
|
24,497
|
|
|
(1,179
|
)
|
|
24,497
|
|
||||||
Other long-term liabilities
|
—
|
|
|
28,086
|
|
|
9,097
|
|
|
24,269
|
|
|
—
|
|
|
61,452
|
|
||||||
Total partners’ equity
|
1,737,209
|
|
|
780,650
|
|
|
933,551
|
|
|
2,448,590
|
|
|
(4,246,100
|
)
|
|
1,653,900
|
|
||||||
Total liabilities and
partners’ equity
|
$
|
2,245,908
|
|
|
$
|
4,029,680
|
|
|
$
|
1,792,029
|
|
|
$
|
2,906,670
|
|
|
$
|
(5,839,156
|
)
|
|
$
|
5,135,131
|
|
|
NuStar
Energy
|
|
NuStar
Logistics
|
|
NuPOP
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
923
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
86,983
|
|
|
$
|
—
|
|
|
$
|
87,912
|
|
Receivables, net
|
—
|
|
|
47,038
|
|
|
18,347
|
|
|
143,093
|
|
|
—
|
|
|
208,478
|
|
||||||
Inventories
|
—
|
|
|
1,998
|
|
|
3,768
|
|
|
49,989
|
|
|
(42
|
)
|
|
55,713
|
|
||||||
Other current assets
|
—
|
|
|
10,403
|
|
|
418
|
|
|
25,239
|
|
|
(116
|
)
|
|
35,944
|
|
||||||
Assets held for sale
|
—
|
|
|
—
|
|
|
—
|
|
|
1,100
|
|
|
—
|
|
|
1,100
|
|
||||||
Intercompany receivable
|
—
|
|
|
1,438,675
|
|
|
—
|
|
|
—
|
|
|
(1,438,675
|
)
|
|
—
|
|
||||||
Total current assets
|
923
|
|
|
1,498,120
|
|
|
22,533
|
|
|
306,404
|
|
|
(1,438,833
|
)
|
|
389,147
|
|
||||||
Property, plant and equipment, net
|
—
|
|
|
1,820,126
|
|
|
559,808
|
|
|
1,080,798
|
|
|
—
|
|
|
3,460,732
|
|
||||||
Intangible assets, net
|
—
|
|
|
55,801
|
|
|
—
|
|
|
2,869
|
|
|
—
|
|
|
58,670
|
|
||||||
Goodwill
|
—
|
|
|
149,453
|
|
|
170,652
|
|
|
297,324
|
|
|
—
|
|
|
617,429
|
|
||||||
Investment in wholly owned
subsidiaries
|
2,289,673
|
|
|
37,179
|
|
|
910,394
|
|
|
913,343
|
|
|
(4,150,589
|
)
|
|
—
|
|
||||||
Investment in joint venture
|
—
|
|
|
—
|
|
|
—
|
|
|
74,223
|
|
|
—
|
|
|
74,223
|
|
||||||
Deferred income tax asset
|
—
|
|
|
—
|
|
|
—
|
|
|
4,429
|
|
|
—
|
|
|
4,429
|
|
||||||
Other long-term assets, net
|
673
|
|
|
279,058
|
|
|
26,329
|
|
|
8,106
|
|
|
—
|
|
|
314,166
|
|
||||||
Total assets
|
$
|
2,291,269
|
|
|
$
|
3,839,737
|
|
|
$
|
1,689,716
|
|
|
$
|
2,687,496
|
|
|
$
|
(5,589,422
|
)
|
|
$
|
4,918,796
|
|
Liabilities and Partners’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Payables
|
$
|
—
|
|
|
$
|
60,687
|
|
|
$
|
8,211
|
|
|
$
|
108,286
|
|
|
$
|
—
|
|
|
$
|
177,184
|
|
Short-term debt
|
—
|
|
|
77,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
77,000
|
|
||||||
Accrued interest payable
|
—
|
|
|
33,340
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
33,345
|
|
||||||
Accrued liabilities
|
862
|
|
|
32,178
|
|
|
6,965
|
|
|
21,020
|
|
|
—
|
|
|
61,025
|
|
||||||
Taxes other than income tax
|
125
|
|
|
7,896
|
|
|
3,099
|
|
|
3,001
|
|
|
—
|
|
|
14,121
|
|
||||||
Income tax payable
|
—
|
|
|
—
|
|
|
4
|
|
|
2,629
|
|
|
(116
|
)
|
|
2,517
|
|
||||||
Intercompany payable
|
506,160
|
|
|
—
|
|
|
751,023
|
|
|
181,492
|
|
|
(1,438,675
|
)
|
|
—
|
|
||||||
Total current liabilities
|
507,147
|
|
|
211,101
|
|
|
769,302
|
|
|
316,433
|
|
|
(1,438,791
|
)
|
|
365,192
|
|
||||||
Long-term debt
|
—
|
|
|
2,749,452
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,749,452
|
|
||||||
Long-term payable to related party
|
—
|
|
|
28,094
|
|
|
—
|
|
|
5,443
|
|
|
—
|
|
|
33,537
|
|
||||||
Deferred income tax liability
|
—
|
|
|
528
|
|
|
22
|
|
|
26,758
|
|
|
—
|
|
|
27,308
|
|
||||||
Other long-term liabilities
|
—
|
|
|
13,681
|
|
|
6,963
|
|
|
6,453
|
|
|
—
|
|
|
27,097
|
|
||||||
Total partners’ equity
|
1,784,122
|
|
|
836,881
|
|
|
913,429
|
|
|
2,332,409
|
|
|
(4,150,631
|
)
|
|
1,716,210
|
|
||||||
Total liabilities and
partners’ equity
|
$
|
2,291,269
|
|
|
$
|
3,839,737
|
|
|
$
|
1,689,716
|
|
|
$
|
2,687,496
|
|
|
$
|
(5,589,422
|
)
|
|
$
|
4,918,796
|
|
|
NuStar
Energy
|
|
NuStar
Logistics
|
|
NuPOP
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues
|
$
|
—
|
|
|
$
|
140,492
|
|
|
$
|
53,988
|
|
|
$
|
299,456
|
|
|
$
|
(370
|
)
|
|
$
|
493,566
|
|
Costs and expenses
|
428
|
|
|
73,274
|
|
|
34,344
|
|
|
284,895
|
|
|
(369
|
)
|
|
392,572
|
|
||||||
Operating (loss) income
|
(428
|
)
|
|
67,218
|
|
|
19,644
|
|
|
14,561
|
|
|
(1
|
)
|
|
100,994
|
|
||||||
Equity in earnings (loss) of
subsidiaries
|
65,444
|
|
|
(2,730
|
)
|
|
16,113
|
|
|
36,270
|
|
|
(115,097
|
)
|
|
—
|
|
||||||
Interest (expense) income, net
|
—
|
|
|
(35,495
|
)
|
|
505
|
|
|
1,542
|
|
|
—
|
|
|
(33,448
|
)
|
||||||
Other income, net
|
—
|
|
|
500
|
|
|
7
|
|
|
1,269
|
|
|
—
|
|
|
1,776
|
|
||||||
Income from continuing
operations before income tax
expense
|
65,016
|
|
|
29,493
|
|
|
36,269
|
|
|
53,642
|
|
|
(115,098
|
)
|
|
69,322
|
|
||||||
Income tax expense
|
—
|
|
|
334
|
|
|
2
|
|
|
3,970
|
|
|
—
|
|
|
4,306
|
|
||||||
Net income
|
$
|
65,016
|
|
|
$
|
29,159
|
|
|
$
|
36,267
|
|
|
$
|
49,672
|
|
|
$
|
(115,098
|
)
|
|
$
|
65,016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income
|
$
|
65,016
|
|
|
$
|
14,807
|
|
|
$
|
36,267
|
|
|
$
|
37,886
|
|
|
$
|
(115,098
|
)
|
|
$
|
38,878
|
|
|
NuStar
Energy
|
|
NuStar
Logistics
|
|
NuPOP
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues
|
$
|
—
|
|
|
$
|
134,345
|
|
|
$
|
54,431
|
|
|
$
|
606,307
|
|
|
$
|
(661
|
)
|
|
$
|
794,422
|
|
Costs and expenses
|
479
|
|
|
72,363
|
|
|
36,710
|
|
|
590,409
|
|
|
(637
|
)
|
|
699,324
|
|
||||||
Operating (loss) income
|
(479
|
)
|
|
61,982
|
|
|
17,721
|
|
|
15,898
|
|
|
(24
|
)
|
|
95,098
|
|
||||||
Equity in earnings (loss) of
subsidiaries
|
62,600
|
|
|
(1,952
|
)
|
|
18,402
|
|
|
36,119
|
|
|
(115,169
|
)
|
|
—
|
|
||||||
Equity in earnings of joint venture
|
—
|
|
|
—
|
|
|
—
|
|
|
2,749
|
|
|
—
|
|
|
2,749
|
|
||||||
Interest (expense) income, net
|
—
|
|
|
(33,306
|
)
|
|
16
|
|
|
283
|
|
|
—
|
|
|
(33,007
|
)
|
||||||
Other expense, net
|
—
|
|
|
(18
|
)
|
|
(20
|
)
|
|
(1,350
|
)
|
|
—
|
|
|
(1,388
|
)
|
||||||
Income from continuing
operations before income tax
expense
|
62,121
|
|
|
26,706
|
|
|
36,119
|
|
|
53,699
|
|
|
(115,193
|
)
|
|
63,452
|
|
||||||
Income tax expense
|
—
|
|
|
220
|
|
|
2
|
|
|
4,113
|
|
|
—
|
|
|
4,335
|
|
||||||
Income from continuing
operations
|
62,121
|
|
|
26,486
|
|
|
36,117
|
|
|
49,586
|
|
|
(115,193
|
)
|
|
59,117
|
|
||||||
(Loss) income from discontinued
operations, net of tax
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
2,844
|
|
|
—
|
|
|
2,831
|
|
||||||
Net income
|
62,121
|
|
|
26,473
|
|
|
36,117
|
|
|
52,430
|
|
|
(115,193
|
)
|
|
61,948
|
|
||||||
Less net loss attributable to
noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
(173
|
)
|
|
—
|
|
|
(173
|
)
|
||||||
Net income attributable to
NuStar Energy L.P.
|
$
|
62,121
|
|
|
$
|
26,473
|
|
|
$
|
36,117
|
|
|
$
|
52,603
|
|
|
$
|
(115,193
|
)
|
|
$
|
62,121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income
|
$
|
62,121
|
|
|
$
|
33,515
|
|
|
$
|
36,117
|
|
|
$
|
41,607
|
|
|
$
|
(115,193
|
)
|
|
$
|
58,167
|
|
Less comprehensive loss
attributable to
noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
(159
|
)
|
|
—
|
|
|
(159
|
)
|
||||||
Comprehensive income
attributable to NuStar Energy L.P.
|
$
|
62,121
|
|
|
$
|
33,515
|
|
|
$
|
36,117
|
|
|
$
|
41,766
|
|
|
$
|
(115,193
|
)
|
|
$
|
58,326
|
|
|
NuStar
Energy
|
|
NuStar
Logistics
|
|
NuPOP
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues
|
$
|
—
|
|
|
$
|
411,698
|
|
|
$
|
155,284
|
|
|
$
|
1,053,448
|
|
|
$
|
(1,309
|
)
|
|
$
|
1,619,121
|
|
Costs and expenses
|
1,356
|
|
|
222,515
|
|
|
99,208
|
|
|
1,004,713
|
|
|
(1,351
|
)
|
|
1,326,441
|
|
||||||
Operating (loss) income
|
(1,356
|
)
|
|
189,183
|
|
|
56,076
|
|
|
48,735
|
|
|
42
|
|
|
292,680
|
|
||||||
Equity in earnings (loss) of
subsidiaries
|
248,596
|
|
|
(8,118
|
)
|
|
110,448
|
|
|
167,207
|
|
|
(518,133
|
)
|
|
—
|
|
||||||
Interest (expense) income, net
|
—
|
|
|
(100,448
|
)
|
|
679
|
|
|
1,460
|
|
|
—
|
|
|
(98,309
|
)
|
||||||
Other income, net
|
—
|
|
|
1,175
|
|
|
16
|
|
|
60,701
|
|
|
—
|
|
|
61,892
|
|
||||||
Income from continuing
operations before income tax
expense
|
247,240
|
|
|
81,792
|
|
|
167,219
|
|
|
278,103
|
|
|
(518,091
|
)
|
|
256,263
|
|
||||||
Income tax expense
|
—
|
|
|
390
|
|
|
20
|
|
|
9,387
|
|
|
—
|
|
|
9,797
|
|
||||||
Income from continuing
operations
|
247,240
|
|
|
81,402
|
|
|
167,199
|
|
|
268,716
|
|
|
(518,091
|
)
|
|
246,466
|
|
||||||
Income from discontinued
operations, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
774
|
|
|
—
|
|
|
774
|
|
||||||
Net income
|
$
|
247,240
|
|
|
$
|
81,402
|
|
|
$
|
167,199
|
|
|
$
|
269,490
|
|
|
$
|
(518,091
|
)
|
|
$
|
247,240
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income
|
$
|
247,240
|
|
|
$
|
90,847
|
|
|
$
|
167,199
|
|
|
$
|
244,648
|
|
|
$
|
(518,091
|
)
|
|
$
|
231,843
|
|
|
NuStar
Energy
|
|
NuStar
Logistics
|
|
NuPOP
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues
|
$
|
—
|
|
|
$
|
369,308
|
|
|
$
|
163,890
|
|
|
$
|
1,869,240
|
|
|
$
|
(9,058
|
)
|
|
$
|
2,393,380
|
|
Costs and expenses
|
1,352
|
|
|
204,415
|
|
|
105,473
|
|
|
1,825,609
|
|
|
(9,024
|
)
|
|
2,127,825
|
|
||||||
Operating (loss) income
|
(1,352
|
)
|
|
164,893
|
|
|
58,417
|
|
|
43,631
|
|
|
(34
|
)
|
|
265,555
|
|
||||||
Equity in earnings (loss) of
subsidiaries
|
158,732
|
|
|
(2,811
|
)
|
|
46,874
|
|
|
105,293
|
|
|
(308,088
|
)
|
|
—
|
|
||||||
Equity in (loss) earnings of
joint ventures
|
—
|
|
|
(8,278
|
)
|
|
—
|
|
|
10,015
|
|
|
—
|
|
|
1,737
|
|
||||||
Interest (expense) income, net
|
—
|
|
|
(100,121
|
)
|
|
38
|
|
|
592
|
|
|
—
|
|
|
(99,491
|
)
|
||||||
Other income (expense), net
|
—
|
|
|
524
|
|
|
(36
|
)
|
|
1,328
|
|
|
—
|
|
|
1,816
|
|
||||||
Income from continuing
operations before income tax
expense
|
157,380
|
|
|
54,207
|
|
|
105,293
|
|
|
160,859
|
|
|
(308,122
|
)
|
|
169,617
|
|
||||||
Income tax expense
|
1
|
|
|
628
|
|
|
5
|
|
|
9,683
|
|
|
—
|
|
|
10,317
|
|
||||||
Income from continuing
operations
|
157,379
|
|
|
53,579
|
|
|
105,288
|
|
|
151,176
|
|
|
(308,122
|
)
|
|
159,300
|
|
||||||
Loss from discontinued
operations, net of tax
|
—
|
|
|
(181
|
)
|
|
—
|
|
|
(2,135
|
)
|
|
—
|
|
|
(2,316
|
)
|
||||||
Net income
|
157,379
|
|
|
53,398
|
|
|
105,288
|
|
|
149,041
|
|
|
(308,122
|
)
|
|
156,984
|
|
||||||
Less net loss attributable to
noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
(395
|
)
|
|
—
|
|
|
(395
|
)
|
||||||
Net income attributable to
NuStar Energy L.P.
|
$
|
157,379
|
|
|
$
|
53,398
|
|
|
$
|
105,288
|
|
|
$
|
149,436
|
|
|
$
|
(308,122
|
)
|
|
$
|
157,379
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income
|
$
|
157,379
|
|
|
$
|
65,183
|
|
|
$
|
105,288
|
|
|
$
|
140,083
|
|
|
$
|
(308,122
|
)
|
|
$
|
159,811
|
|
Less comprehensive loss
attributable to
noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
(828
|
)
|
|
—
|
|
|
(828
|
)
|
||||||
Comprehensive income
attributable to NuStar Energy L.P.
|
$
|
157,379
|
|
|
$
|
65,183
|
|
|
$
|
105,288
|
|
|
$
|
140,911
|
|
|
$
|
(308,122
|
)
|
|
$
|
160,639
|
|
|
NuStar
Energy
|
|
NuStar
Logistics
|
|
NuPOP
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Net cash provided by (used in)
operating activities
|
$
|
292,631
|
|
|
$
|
157,684
|
|
|
$
|
89,173
|
|
|
$
|
277,881
|
|
|
$
|
(441,245
|
)
|
|
$
|
376,124
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital expenditures
|
—
|
|
|
(156,510
|
)
|
|
(30,846
|
)
|
|
(53,315
|
)
|
|
—
|
|
|
(240,671
|
)
|
||||||
Change in accounts payable
related to capital expenditures
|
—
|
|
|
(11,797
|
)
|
|
4,707
|
|
|
(712
|
)
|
|
—
|
|
|
(7,802
|
)
|
||||||
Acquisitions
|
—
|
|
|
—
|
|
|
—
|
|
|
(142,500
|
)
|
|
—
|
|
|
(142,500
|
)
|
||||||
Increase in other long-term
assets
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,587
|
)
|
|
—
|
|
|
(3,587
|
)
|
||||||
Proceeds from sale or disposition
of assets
|
—
|
|
|
10,318
|
|
|
20
|
|
|
6,787
|
|
|
—
|
|
|
17,125
|
|
||||||
Net cash used in investing activities
|
—
|
|
|
(157,989
|
)
|
|
(26,119
|
)
|
|
(193,327
|
)
|
|
—
|
|
|
(377,435
|
)
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Debt borrowings
|
—
|
|
|
1,280,879
|
|
|
—
|
|
|
88,900
|
|
|
—
|
|
|
1,369,779
|
|
||||||
Debt repayments
|
—
|
|
|
(990,410
|
)
|
|
—
|
|
|
(32,000
|
)
|
|
—
|
|
|
(1,022,410
|
)
|
||||||
Distributions to unitholders
and general partner
|
(294,153
|
)
|
|
(147,076
|
)
|
|
(147,077
|
)
|
|
(147,092
|
)
|
|
441,245
|
|
|
(294,153
|
)
|
||||||
Net intercompany activity
|
1,484
|
|
|
(134,701
|
)
|
|
84,023
|
|
|
49,194
|
|
|
—
|
|
|
—
|
|
||||||
Other, net
|
—
|
|
|
(7,462
|
)
|
|
—
|
|
|
(5,611
|
)
|
|
—
|
|
|
(13,073
|
)
|
||||||
Net cash (used in) provided by
financing activities
|
(292,669
|
)
|
|
1,230
|
|
|
(63,054
|
)
|
|
(46,609
|
)
|
|
441,245
|
|
|
40,143
|
|
||||||
Effect of foreign exchange rate
changes on cash
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,319
|
)
|
|
—
|
|
|
(10,319
|
)
|
||||||
Net (decrease) increase in cash
and cash equivalents
|
(38
|
)
|
|
925
|
|
|
—
|
|
|
27,626
|
|
|
—
|
|
|
28,513
|
|
||||||
Cash and cash equivalents as of the
beginning of the period
|
923
|
|
|
6
|
|
|
—
|
|
|
86,983
|
|
|
—
|
|
|
87,912
|
|
||||||
Cash and cash equivalents as of the
end of the period
|
$
|
885
|
|
|
$
|
931
|
|
|
$
|
—
|
|
|
$
|
114,609
|
|
|
$
|
—
|
|
|
$
|
116,425
|
|
|
NuStar
Energy
|
|
NuStar
Logistics
|
|
NuPOP
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Net cash provided by operating
activities
|
$
|
292,757
|
|
|
$
|
133,967
|
|
|
$
|
76,913
|
|
|
$
|
203,783
|
|
|
$
|
(392,225
|
)
|
|
$
|
315,195
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital expenditures
|
—
|
|
|
(174,296
|
)
|
|
(6,308
|
)
|
|
(48,944
|
)
|
|
—
|
|
|
(229,548
|
)
|
||||||
Change in accounts payable
related to capital expenditures
|
—
|
|
|
18,470
|
|
|
81
|
|
|
(7,641
|
)
|
|
—
|
|
|
10,910
|
|
||||||
Proceeds from sale or disposition
of assets
|
—
|
|
|
651
|
|
|
13
|
|
|
25,311
|
|
|
—
|
|
|
25,975
|
|
||||||
Increase in note receivable from
Axeon
|
—
|
|
|
(13,328
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(13,328
|
)
|
||||||
Other, net
|
—
|
|
|
(46
|
)
|
|
—
|
|
|
(830
|
)
|
|
23
|
|
|
(853
|
)
|
||||||
Net cash used in investing activities
|
—
|
|
|
(168,549
|
)
|
|
(6,214
|
)
|
|
(32,104
|
)
|
|
23
|
|
|
(206,844
|
)
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Debt borrowings
|
—
|
|
|
742,636
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
742,636
|
|
||||||
Debt repayments
|
—
|
|
|
(635,069
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(635,069
|
)
|
||||||
Distributions to unitholders and
general partner
|
(294,153
|
)
|
|
(196,101
|
)
|
|
(98,052
|
)
|
|
(98,072
|
)
|
|
392,225
|
|
|
(294,153
|
)
|
||||||
Net intercompany activity
|
1,405
|
|
|
100,930
|
|
|
27,353
|
|
|
(129,688
|
)
|
|
—
|
|
|
—
|
|
||||||
Other, net
|
—
|
|
|
(114
|
)
|
|
—
|
|
|
2,677
|
|
|
(23
|
)
|
|
2,540
|
|
||||||
Net cash (used in) provided by
financing activities
|
(292,748
|
)
|
|
12,282
|
|
|
(70,699
|
)
|
|
(225,083
|
)
|
|
392,202
|
|
|
(184,046
|
)
|
||||||
Effect of foreign exchange rate
changes on cash
|
—
|
|
|
—
|
|
|
—
|
|
|
638
|
|
|
—
|
|
|
638
|
|
||||||
Net increase (decrease) in cash and
cash equivalents
|
9
|
|
|
(22,300
|
)
|
|
—
|
|
|
(52,766
|
)
|
|
—
|
|
|
(75,057
|
)
|
||||||
Cash and cash equivalents as of the
beginning of the period
|
904
|
|
|
22,307
|
|
|
—
|
|
|
77,532
|
|
|
—
|
|
|
100,743
|
|
||||||
Cash and cash equivalents as of the
end of the period
|
$
|
913
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
24,766
|
|
|
$
|
—
|
|
|
$
|
25,686
|
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
•
|
Overview
|
•
|
Results of Operations
|
•
|
Trends and Outlook
|
•
|
Liquidity and Capital Resources
|
•
|
Related Party Transactions
|
•
|
Critical Accounting Policies
|
•
|
New Accounting Pronouncements
|
•
|
company-specific factors, such as facility integrity issues and maintenance requirements that impact the throughput rates of our assets;
|
•
|
seasonal factors that affect the demand for products transported by and/or stored in our assets and the demand for products we sell;
|
•
|
industry factors, such as changes in the prices of petroleum products that affect demand and operations of our competitors;
|
•
|
factors such as commodity price volatility that impact our fuels marketing segment; and
|
•
|
other factors, such as refinery utilization rates and maintenance turnaround schedules, that impact the operations of refineries served by our pipeline and storage assets.
|
|
Three Months Ended September 30,
|
|
Change
|
||||||||
|
2015
|
|
2014
|
|
|||||||
Statement of Income Data:
|
|
|
|
|
|
||||||
Revenues:
|
|
|
|
|
|
||||||
Service revenues
|
$
|
288,574
|
|
|
$
|
266,651
|
|
|
$
|
21,923
|
|
Product sales
|
204,992
|
|
|
527,771
|
|
|
(322,779
|
)
|
|||
Total revenues
|
493,566
|
|
|
794,422
|
|
|
(300,856
|
)
|
|||
|
|
|
|
|
|
||||||
Costs and expenses:
|
|
|
|
|
|
||||||
Cost of product sales
|
193,958
|
|
|
509,794
|
|
|
(315,836
|
)
|
|||
Operating expenses
|
122,634
|
|
|
115,964
|
|
|
6,670
|
|
|||
General and administrative expenses
|
23,679
|
|
|
24,967
|
|
|
(1,288
|
)
|
|||
Depreciation and amortization expense
|
52,301
|
|
|
48,599
|
|
|
3,702
|
|
|||
Total costs and expenses
|
392,572
|
|
|
699,324
|
|
|
(306,752
|
)
|
|||
|
|
|
|
|
|
||||||
Operating income
|
100,994
|
|
|
95,098
|
|
|
5,896
|
|
|||
Equity in earnings of joint ventures
|
—
|
|
|
2,749
|
|
|
(2,749
|
)
|
|||
Interest expense, net
|
(33,448
|
)
|
|
(33,007
|
)
|
|
(441
|
)
|
|||
Other income (expense), net
|
1,776
|
|
|
(1,388
|
)
|
|
3,164
|
|
|||
Income from continuing operations before income tax expense
|
69,322
|
|
|
63,452
|
|
|
5,870
|
|
|||
Income tax expense
|
4,306
|
|
|
4,335
|
|
|
(29
|
)
|
|||
Income from continuing operations
|
65,016
|
|
|
59,117
|
|
|
5,899
|
|
|||
Income from discontinued operations, net of tax
|
—
|
|
|
2,831
|
|
|
(2,831
|
)
|
|||
Net income
|
$
|
65,016
|
|
|
$
|
61,948
|
|
|
$
|
3,068
|
|
Net income per unit applicable to limited partners:
|
|
|
|
|
|
||||||
Continuing operations
|
$
|
0.68
|
|
|
$
|
0.61
|
|
|
$
|
0.07
|
|
Discontinued operations
|
—
|
|
|
0.03
|
|
|
(0.03
|
)
|
|||
Total
|
$
|
0.68
|
|
|
$
|
0.64
|
|
|
$
|
0.04
|
|
Weighted-average limited partner units outstanding
|
77,886,078
|
|
|
77,886,078
|
|
|
—
|
|
|
Three Months Ended September 30,
|
|
Change
|
||||||||
|
2015
|
|
2014
|
|
|||||||
Pipeline:
|
|
|
|
|
|
||||||
Refined products pipelines throughput (barrels/day)
|
531,034
|
|
|
514,361
|
|
|
16,673
|
|
|||
Crude oil pipelines throughput (barrels/day)
|
477,537
|
|
|
471,698
|
|
|
5,839
|
|
|||
Total throughput (barrels/day)
|
1,008,571
|
|
|
986,059
|
|
|
22,512
|
|
|||
Throughput revenues
|
$
|
131,395
|
|
|
$
|
125,461
|
|
|
$
|
5,934
|
|
Operating expenses
|
41,199
|
|
|
39,996
|
|
|
1,203
|
|
|||
Depreciation and amortization expense
|
21,660
|
|
|
19,813
|
|
|
1,847
|
|
|||
Segment operating income
|
$
|
68,536
|
|
|
$
|
65,652
|
|
|
$
|
2,884
|
|
Storage:
|
|
|
|
|
|
||||||
Throughput (barrels/day)
|
872,877
|
|
|
914,599
|
|
|
(41,722
|
)
|
|||
Throughput revenues
|
$
|
32,051
|
|
|
$
|
32,498
|
|
|
$
|
(447
|
)
|
Storage lease revenues
|
130,052
|
|
|
111,447
|
|
|
18,605
|
|
|||
Total revenues
|
162,103
|
|
|
143,945
|
|
|
18,158
|
|
|||
Operating expenses
|
73,505
|
|
|
68,244
|
|
|
5,261
|
|
|||
Depreciation and amortization expense
|
28,612
|
|
|
26,300
|
|
|
2,312
|
|
|||
Segment operating income
|
$
|
59,986
|
|
|
$
|
49,401
|
|
|
$
|
10,585
|
|
Fuels Marketing:
|
|
|
|
|
|
||||||
Product sales and other revenue
|
$
|
206,696
|
|
|
$
|
531,190
|
|
|
$
|
(324,494
|
)
|
Cost of product sales
|
198,006
|
|
|
513,300
|
|
|
(315,294
|
)
|
|||
Gross margin
|
8,690
|
|
|
17,890
|
|
|
(9,200
|
)
|
|||
Operating expenses
|
10,509
|
|
|
10,367
|
|
|
142
|
|
|||
Depreciation and amortization expense
|
—
|
|
|
5
|
|
|
(5
|
)
|
|||
Segment operating (loss) income
|
$
|
(1,819
|
)
|
|
$
|
7,518
|
|
|
$
|
(9,337
|
)
|
Consolidation and Intersegment Eliminations:
|
|
|
|
|
|
||||||
Revenues
|
$
|
(6,628
|
)
|
|
$
|
(6,174
|
)
|
|
$
|
(454
|
)
|
Cost of product sales
|
(4,048
|
)
|
|
(3,506
|
)
|
|
(542
|
)
|
|||
Operating expenses
|
(2,579
|
)
|
|
(2,643
|
)
|
|
64
|
|
|||
Total
|
$
|
(1
|
)
|
|
$
|
(25
|
)
|
|
$
|
24
|
|
Consolidated Information:
|
|
|
|
|
|
||||||
Revenues
|
$
|
493,566
|
|
|
$
|
794,422
|
|
|
$
|
(300,856
|
)
|
Cost of product sales
|
193,958
|
|
|
509,794
|
|
|
(315,836
|
)
|
|||
Operating expenses
|
122,634
|
|
|
115,964
|
|
|
6,670
|
|
|||
Depreciation and amortization expense
|
50,272
|
|
|
46,118
|
|
|
4,154
|
|
|||
Segment operating income
|
126,702
|
|
|
122,546
|
|
|
4,156
|
|
|||
General and administrative expenses
|
23,679
|
|
|
24,967
|
|
|
(1,288
|
)
|
|||
Other depreciation and amortization expense
|
2,029
|
|
|
2,481
|
|
|
(452
|
)
|
|||
Consolidated operating income
|
$
|
100,994
|
|
|
$
|
95,098
|
|
|
$
|
5,896
|
|
•
|
an increase in revenues of $2.7 million and an increase in throughputs of 4,103 barrels per day on the Ammonia Pipeline, due to increased long-haul deliveries, the annual index adjustment in July 2015 and higher volumes shipped as a result of low inventory levels and in anticipation of a heavy fall application season;
|
•
|
an increase in revenues of $2.2 million and an increase in throughputs of 6,598 barrels per day on our McKee systems due to higher demand in markets served by those pipelines;
|
•
|
an increase in revenues of $1.2 million and an increase in throughputs of 8,600 barrels per day on our Eagle Ford System, mainly due to the increase of throughputs to a customer’s refinery in preparation for planned maintenance; and
|
•
|
an increase in revenues of $0.4 million and an increase in throughputs of 8,113 barrels per day on our Burgos pipeline as a result of a project completed in 2015.
|
•
|
an increase of $10.8 million as a result of the Linden Acquisition; and
|
•
|
an increase of $6.0 million at our domestic terminal facilities, due to increased throughput and related handling fees, storage rate escalations, new customers and increased reimbursable revenues, mainly at our Texas City and asphalt terminal facilities.
|
•
|
an increase of $3.8 million as a result of the Linden Acquisition; and
|
•
|
an increase of $1.9 million in reimbursable expenses, mainly at our Texas City and Point Tupper terminal facilities.
|
|
Nine Months Ended September 30,
|
|
Change
|
||||||||
|
2015
|
|
2014
|
|
|||||||
Statement of Income Data:
|
|
|
|
|
|
||||||
Revenues:
|
|
|
|
|
|
||||||
Service revenues
|
$
|
833,128
|
|
|
$
|
755,551
|
|
|
$
|
77,577
|
|
Product sales
|
785,993
|
|
|
1,637,829
|
|
|
(851,836
|
)
|
|||
Total revenues
|
1,619,121
|
|
|
2,393,380
|
|
|
(774,259
|
)
|
|||
|
|
|
|
|
|
||||||
Costs and expenses:
|
|
|
|
|
|
||||||
Cost of product sales
|
738,074
|
|
|
1,578,508
|
|
|
(840,434
|
)
|
|||
Operating expenses
|
355,419
|
|
|
337,566
|
|
|
17,853
|
|
|||
General and administrative expenses
|
75,425
|
|
|
68,986
|
|
|
6,439
|
|
|||
Depreciation and amortization expense
|
157,523
|
|
|
142,765
|
|
|
14,758
|
|
|||
Total costs and expenses
|
1,326,441
|
|
|
2,127,825
|
|
|
(801,384
|
)
|
|||
|
|
|
|
|
|
||||||
Operating income
|
292,680
|
|
|
265,555
|
|
|
27,125
|
|
|||
Equity in earnings of joint ventures
|
—
|
|
|
1,737
|
|
|
(1,737
|
)
|
|||
Interest expense, net
|
(98,309
|
)
|
|
(100,546
|
)
|
|
2,237
|
|
|||
Interest income from related party
|
—
|
|
|
1,055
|
|
|
(1,055
|
)
|
|||
Other income, net
|
61,892
|
|
|
1,816
|
|
|
60,076
|
|
|||
Income from continuing operations before income tax expense
|
256,263
|
|
|
169,617
|
|
|
86,646
|
|
|||
Income tax expense
|
9,797
|
|
|
10,317
|
|
|
(520
|
)
|
|||
Income from continuing operations
|
246,466
|
|
|
159,300
|
|
|
87,166
|
|
|||
Income (loss) from discontinued operations, net of tax
|
774
|
|
|
(2,316
|
)
|
|
3,090
|
|
|||
Net income
|
$
|
247,240
|
|
|
$
|
156,984
|
|
|
$
|
90,256
|
|
|
|
|
|
|
|
||||||
Net income (loss) per unit applicable to limited partners:
|
|
|
|
|
|
||||||
Continuing operations
|
$
|
2.68
|
|
|
$
|
1.59
|
|
|
$
|
1.09
|
|
Discontinued operations
|
0.01
|
|
|
(0.03
|
)
|
|
0.04
|
|
|||
Total
|
$
|
2.69
|
|
|
$
|
1.56
|
|
|
$
|
1.13
|
|
Weighted-average limited partner units outstanding
|
77,886,078
|
|
|
77,886,078
|
|
|
—
|
|
|
Nine Months Ended September 30,
|
|
Change
|
||||||||
|
2015
|
|
2014
|
|
|||||||
Pipeline:
|
|
|
|
|
|
||||||
Refined products pipelines throughput (barrels/day)
|
512,340
|
|
|
503,059
|
|
|
9,281
|
|
|||
Crude oil pipelines throughput (barrels/day)
|
483,974
|
|
|
419,824
|
|
|
64,150
|
|
|||
Total throughput (barrels/day)
|
996,314
|
|
|
922,883
|
|
|
73,431
|
|
|||
Throughput revenues
|
$
|
378,030
|
|
|
$
|
346,218
|
|
|
$
|
31,812
|
|
Operating expenses
|
113,141
|
|
|
109,685
|
|
|
3,456
|
|
|||
Depreciation and amortization expense
|
62,893
|
|
|
57,655
|
|
|
5,238
|
|
|||
Segment operating income
|
$
|
201,996
|
|
|
$
|
178,878
|
|
|
$
|
23,118
|
|
Storage:
|
|
|
|
|
|
||||||
Throughput (barrels/day)
|
903,506
|
|
|
877,052
|
|
|
26,454
|
|
|||
Throughput revenues
|
$
|
98,365
|
|
|
$
|
91,184
|
|
|
$
|
7,181
|
|
Storage lease revenues
|
371,714
|
|
|
330,313
|
|
|
41,401
|
|
|||
Total revenues
|
470,079
|
|
|
421,497
|
|
|
48,582
|
|
|||
Operating expenses
|
220,137
|
|
|
202,602
|
|
|
17,535
|
|
|||
Depreciation and amortization expense
|
88,227
|
|
|
77,480
|
|
|
10,747
|
|
|||
Segment operating income
|
$
|
161,715
|
|
|
$
|
141,415
|
|
|
$
|
20,300
|
|
Fuels Marketing:
|
|
|
|
|
|
||||||
Product sales and other revenue
|
$
|
790,719
|
|
|
$
|
1,645,812
|
|
|
$
|
(855,093
|
)
|
Cost of product sales
|
750,086
|
|
|
1,590,605
|
|
|
(840,519
|
)
|
|||
Gross margin
|
40,633
|
|
|
55,207
|
|
|
(14,574
|
)
|
|||
Operating expenses
|
29,877
|
|
|
33,294
|
|
|
(3,417
|
)
|
|||
Depreciation and amortization expense
|
—
|
|
|
16
|
|
|
(16
|
)
|
|||
Segment operating income
|
$
|
10,756
|
|
|
$
|
21,897
|
|
|
$
|
(11,141
|
)
|
Consolidation and Intersegment Eliminations:
|
|
|
|
|
|
||||||
Revenues
|
$
|
(19,707
|
)
|
|
$
|
(20,147
|
)
|
|
$
|
440
|
|
Cost of product sales
|
(12,012
|
)
|
|
(12,097
|
)
|
|
85
|
|
|||
Operating expenses
|
(7,736
|
)
|
|
(8,015
|
)
|
|
279
|
|
|||
Total
|
$
|
41
|
|
|
$
|
(35
|
)
|
|
$
|
76
|
|
Consolidated Information:
|
|
|
|
|
|
||||||
Revenues
|
$
|
1,619,121
|
|
|
$
|
2,393,380
|
|
|
$
|
(774,259
|
)
|
Cost of product sales
|
738,074
|
|
|
1,578,508
|
|
|
(840,434
|
)
|
|||
Operating expenses
|
355,419
|
|
|
337,566
|
|
|
17,853
|
|
|||
Depreciation and amortization expense
|
151,120
|
|
|
135,151
|
|
|
15,969
|
|
|||
Segment operating income
|
374,508
|
|
|
342,155
|
|
|
32,353
|
|
|||
General and administrative expenses
|
75,425
|
|
|
68,986
|
|
|
6,439
|
|
|||
Other depreciation and amortization expense
|
6,403
|
|
|
7,614
|
|
|
(1,211
|
)
|
|||
Consolidated operating income
|
$
|
292,680
|
|
|
$
|
265,555
|
|
|
$
|
27,125
|
|
•
|
an increase in revenues of $21.4 million and an increase in throughputs of 57,108 barrels per day on our Eagle Ford System, primarily resulting from completion of expansion projects that increased our overall capacity; and
|
•
|
an increase in revenues of $10.3 million and an increase in throughputs of 22,232 barrels per day mainly as a
result of a turnaround during the first quarter of 2014 at the refinery served by our McKee systems.
|
•
|
an increase in revenues of $3.5 million and an increase in throughputs of 38,294 barrels per day at our Corpus Christi North Beach terminal due to an increase in Eagle Ford Shale crude oil being shipped to Corpus Christi and the completion of related expansion projects;
|
•
|
an increase in revenues of $2.8 million and an increase in throughputs of 17,089 barrels per day as a result of turnarounds during the first quarter of 2014 at the refineries served by our Benicia crude oil storage tank facility and McKee system terminals; and
|
•
|
an increase in revenues of $1.6 million and an increase in throughputs of 4,777 barrels per day at our Corpus Christi System and Paulsboro terminals due to increased demand.
|
•
|
an increase of $30.9 million as a result of the Linden Acquisition;
|
•
|
an increase of $11.6 million at our St. Eustatius terminal facility, mainly due to increased demand for storage and higher ancillary activity; and
|
•
|
an increase of $5.7 million at our domestic terminal facilities, mainly due to storage rate escalations, new customers and increased reimbursable revenues at our Texas City and asphalt terminal facilities.
|
•
|
an increase of $10.6 million as a result of the Linden Acquisition;
|
•
|
an increase of $5.2 million in regulatory and maintenance expenses, mainly at our St. James and St. Eustatius terminal facilities; and
|
•
|
an increase of $2.8 million associated with property taxes at our St. Eustatius terminal facility.
|
•
|
an $8.2 million increase in salaries and wages mainly due to increased headcount and higher employee benefit costs;
|
•
|
a $3.1 million increase as a result of the termination of a services agreement between Axeon and NuStar GP, LLC in June 2014, under which Axeon reimbursed us for certain corporate support services; and
|
•
|
a $2.3 million increase in outside legal costs.
|
|
Nine Months Ended September 30,
|
||||||
|
2015
|
|
2014
|
||||
|
(Thousands of Dollars)
|
||||||
Net cash provided by (used in):
|
|
|
|
||||
Operating activities
|
$
|
376,124
|
|
|
$
|
315,195
|
|
Investing activities
|
(377,435
|
)
|
|
(206,844
|
)
|
||
Financing activities
|
40,143
|
|
|
(184,046
|
)
|
||
Effect of foreign exchange rate changes on cash
|
(10,319
|
)
|
|
638
|
|
||
Net increase (decrease) in cash and cash equivalents
|
$
|
28,513
|
|
|
$
|
(75,057
|
)
|
•
|
reliability capital expenditures, such as those required to maintain equipment reliability and safety; and
|
•
|
strategic capital expenditures, such as those to expand and upgrade pipeline capacity or terminal facilities and to construct new pipelines, terminals and storage tanks. In addition, strategic capital expenditures may include acquisitions of pipelines, terminals or storage tank assets, as well as certain capital expenditures related to support functions.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
(Thousands of Dollars, Except Per Unit Data)
|
||||||||||||||
General partner interest
|
$
|
1,961
|
|
|
$
|
1,961
|
|
|
$
|
5,883
|
|
|
$
|
5,883
|
|
General partner incentive distribution
|
10,805
|
|
|
10,805
|
|
|
32,415
|
|
|
32,415
|
|
||||
Total general partner distribution
|
12,766
|
|
|
12,766
|
|
|
38,298
|
|
|
38,298
|
|
||||
Limited partners’ distribution
|
85,285
|
|
|
85,285
|
|
|
255,855
|
|
|
255,855
|
|
||||
Total cash distributions
|
$
|
98,051
|
|
|
$
|
98,051
|
|
|
$
|
294,153
|
|
|
$
|
294,153
|
|
|
|
|
|
|
|
|
|
||||||||
Cash distributions per unit applicable to limited partners
|
$
|
1.095
|
|
|
$
|
1.095
|
|
|
$
|
3.285
|
|
|
$
|
3.285
|
|
Quarter Ended
|
|
Cash Distributions Per Unit
|
|
Total Cash Distributions
|
|
Record Date
|
|
Payment Date
|
||||
|
|
|
|
(Thousands of Dollars)
|
|
|
|
|
||||
September 30, 2015 (a)
|
|
$
|
1.095
|
|
|
$
|
98,051
|
|
|
November 9, 2015
|
|
November 13, 2015
|
June 30, 2015
|
|
$
|
1.095
|
|
|
$
|
98,051
|
|
|
August 7, 2015
|
|
August 13, 2015
|
March 31, 2015
|
|
$
|
1.095
|
|
|
$
|
98,051
|
|
|
May 8, 2015
|
|
May 14, 2015
|
December 31, 2014
|
|
$
|
1.095
|
|
|
$
|
98,051
|
|
|
February 9, 2015
|
|
February 13, 2015
|
(a)
|
The distribution was announced on
October 30, 2015
.
|
•
|
revolving credit agreement due October 29, 2019, with a balance of $908.1 million as of
September 30, 2015
;
|
•
|
7.65% senior notes due April 15, 2018 with a face value of $350.0 million; 4.80% senior notes due September 1, 2020 with a face value of $450.0 million; 6.75% senior notes due February 1, 2021 with a face value of $300.0 million; 4.75% senior notes due February 1, 2022 with a face value of $250.0 million; and 7.625% subordinated notes due January 15, 2043 with a face value of $402.5 million;
|
•
|
$365.4 million Gulf Opportunity Zone Revenue Bonds due from 2038 to 2041;
|
•
|
$80.0 million line of credit agreements with
$42.0 million
outstanding as of
September 30, 2015
; and
|
•
|
Receivables Financing Agreement due June 15, 2018, with
$56.9 million
of borrowings outstanding as of
September 30, 2015
.
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
|
September 30, 2015
|
||||||||||||||||||||||||||||||
|
Expected Maturity Dates
|
|
|
|
|
||||||||||||||||||||||||||
|
2015
|
|
2016
|
|
2017
|
|
2018
|
|
2019
|
|
There-
after
|
|
Total
|
|
Fair
Value
|
||||||||||||||||
|
(Thousands of Dollars, Except Interest Rates)
|
||||||||||||||||||||||||||||||
Long-term Debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Fixed rate
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
350,000
|
|
|
$
|
—
|
|
|
$
|
1,402,500
|
|
|
$
|
1,752,500
|
|
|
$
|
1,741,843
|
|
Weighted-average
interest rate
|
—
|
|
|
—
|
|
|
—
|
|
|
8.2
|
%
|
|
—
|
|
|
6.0
|
%
|
|
6.4
|
%
|
|
|
|||||||||
Variable rate
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
56,900
|
|
|
$
|
908,059
|
|
|
$
|
365,440
|
|
|
$
|
1,330,399
|
|
|
$
|
1,331,487
|
|
Weighted-average
interest rate
|
—
|
|
|
—
|
|
|
—
|
|
|
1.1
|
%
|
|
2.0
|
%
|
|
0.1
|
%
|
|
1.4
|
%
|
|
|
|
December 31, 2014
|
||||||||||||||||||||||||||||||
|
Expected Maturity Dates
|
|
|
|
|
||||||||||||||||||||||||||
|
2015
|
|
2016
|
|
2017
|
|
2018
|
|
2019
|
|
There-
after
|
|
Total
|
|
Fair
Value
|
||||||||||||||||
|
(Thousands of Dollars, Except Interest Rates)
|
||||||||||||||||||||||||||||||
Long-term Debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Fixed rate
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
350,000
|
|
|
$
|
—
|
|
|
$
|
1,402,500
|
|
|
$
|
1,752,500
|
|
|
$
|
1,796,536
|
|
Weighted-average
interest rate
|
—
|
|
|
—
|
|
|
—
|
|
|
8.2
|
%
|
|
—
|
|
|
6.0
|
%
|
|
6.4
|
%
|
|
|
|||||||||
Variable rate
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
601,496
|
|
|
$
|
365,440
|
|
|
$
|
966,936
|
|
|
$
|
967,706
|
|
Weighted-average
interest rate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.0
|
%
|
|
0.1
|
%
|
|
1.2
|
%
|
|
|
Notional Amount
|
|
Period of Hedge
|
|
Weighted-Average Fixed Rate
|
|
Fair Value
|
|||||
September 30, 2015
|
|
|
|
|
|
September 30, 2015
|
|||||
(Thousands of Dollars)
|
|
|
|
|
|
(Thousands of Dollars)
|
|||||
$
|
200,000
|
|
|
04/2018 - 04/2028
|
|
2.6
|
%
|
|
$
|
(236
|
)
|
250,000
|
|
|
09/2020 - 09/2030
|
|
2.8
|
%
|
|
2,232
|
|
||
$
|
450,000
|
|
|
|
|
2.7
|
%
|
|
$
|
1,996
|
|
|
September 30, 2015
|
|||||||||||||
|
Contract
Volumes
|
|
Weighted Average
|
|
Fair Value of
Current
Asset (Liability)
|
|||||||||
Pay Price
|
|
Receive Price
|
|
|||||||||||
|
(Thousands
of Barrels)
|
|
|
|
|
|
(Thousands of
Dollars)
|
|||||||
Fair Value Hedges:
|
|
|
|
|
|
|
|
|||||||
Futures – long:
|
|
|
|
|
|
|
|
|||||||
(crude oil and refined products)
|
105
|
|
|
$
|
59.38
|
|
|
N/A
|
|
|
$
|
(5
|
)
|
|
Futures – short:
|
|
|
|
|
|
|
|
|||||||
(crude oil and refined products)
|
263
|
|
|
N/A
|
|
|
$
|
55.35
|
|
|
$
|
39
|
|
|
Swaps - long:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
346
|
|
|
$
|
35.15
|
|
|
N/A
|
|
|
$
|
(168
|
)
|
|
Swaps - short:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
1,152
|
|
|
N/A
|
|
|
$
|
35.66
|
|
|
$
|
1,135
|
|
|
|
|
|
|
|
|
|
|
|||||||
Economic Hedges and Other Derivatives:
|
|
|
|
|
|
|
|
|||||||
Futures – long:
|
|
|
|
|
|
|
|
|||||||
(crude oil and refined products)
|
636
|
|
|
$
|
46.61
|
|
|
N/A
|
|
|
$
|
331
|
|
|
Futures – short:
|
|
|
|
|
|
|
|
|||||||
(crude oil and refined products)
|
638
|
|
|
N/A
|
|
|
$
|
48.06
|
|
|
$
|
559
|
|
|
Swaps – long:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
997
|
|
|
$
|
36.12
|
|
|
N/A
|
|
|
$
|
(2,003
|
)
|
|
Swaps – short:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
1,038
|
|
|
N/A
|
|
|
$
|
41.90
|
|
|
$
|
8,058
|
|
|
Forward purchase contracts:
|
|
|
|
|
|
|
|
|||||||
(crude oil)
|
298
|
|
|
$
|
47.21
|
|
|
N/A
|
|
|
$
|
(132
|
)
|
|
Forward sales contracts:
|
|
|
|
|
|
|
|
|||||||
(crude oil)
|
298
|
|
|
N/A
|
|
|
$
|
47.26
|
|
|
$
|
147
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total fair value of open positions exposed to
commodity price risk
|
|
|
|
|
|
|
$
|
7,961
|
|
|
December 31, 2014
|
|||||||||||||
|
Contract
Volumes
|
|
Weighted Average
|
|
Fair Value of
Current
Asset (Liability)
|
|||||||||
Pay Price
|
|
Receive Price
|
|
|||||||||||
|
(Thousands
of Barrels)
|
|
|
|
|
|
(Thousands of
Dollars)
|
|||||||
Fair Value Hedges:
|
|
|
|
|
|
|
|
|||||||
Futures – long:
|
|
|
|
|
|
|
|
|||||||
(crude oil)
|
162
|
|
|
$
|
59.82
|
|
|
N/A
|
|
|
$
|
(1,060
|
)
|
|
Futures – short:
|
|
|
|
|
|
|
|
|||||||
(crude oil)
|
169
|
|
|
N/A
|
|
|
$
|
59.56
|
|
|
$
|
1,064
|
|
|
Swaps – long:
|
|
|
|
|
|
|
|
|||||||
(crude oil and refined products)
|
251
|
|
|
$
|
48.86
|
|
|
N/A
|
|
|
$
|
(1,341
|
)
|
|
Swaps – short:
|
|
|
|
|
|
|
|
|||||||
(crude oil and refined products)
|
1,005
|
|
|
N/A
|
|
|
$
|
55.66
|
|
|
$
|
11,861
|
|
|
|
|
|
|
|
|
|
|
|||||||
Economic Hedges and Other Derivatives:
|
|
|
|
|
|
|
|
|||||||
Futures – long:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
24
|
|
|
$
|
75.91
|
|
|
N/A
|
|
|
$
|
26
|
|
|
Swaps – long:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
106
|
|
|
$
|
44.97
|
|
|
N/A
|
|
|
$
|
(120
|
)
|
|
Swaps – short:
|
|
|
|
|
|
|
|
|||||||
(crude oil and refined products)
|
50
|
|
|
N/A
|
|
|
$
|
54.98
|
|
|
$
|
553
|
|
|
Forward purchase contracts:
|
|
|
|
|
|
|
|
|||||||
(crude oil)
|
812
|
|
|
$
|
65.81
|
|
|
N/A
|
|
|
$
|
(11,624
|
)
|
|
Forward sales contracts:
|
|
|
|
|
|
|
|
|||||||
(crude oil)
|
812
|
|
|
N/A
|
|
|
$
|
65.95
|
|
|
$
|
12,109
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total fair value of open positions exposed to
commodity price risk
|
|
|
|
|
|
|
$
|
11,468
|
|
Item 4.
|
Controls and Procedures
|
(a)
|
Evaluation of disclosure controls and procedures.
|
(b)
|
Changes in internal control over financial reporting.
|
Period
|
|
Total Number of Units Purchased
(1)
|
|
Average Price Paid per Unit
(1)
|
|
Total Number of Units Purchased as Part of Publicly Announced Plans or Programs
|
|
Maximum Number (or Approximate Dollar Value) of Units that May Yet Be Purchased Under the Plans or Programs
|
||||||
July 1 through July 31
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
August 1 through August 31
|
|
90,000
|
|
|
51.02
|
|
|
—
|
|
|
—
|
|
||
September 1 through September 30
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Total
|
|
90,000
|
|
|
$
|
51.02
|
|
|
—
|
|
|
$
|
—
|
|
Item 6.
|
Exhibits
|
By:
|
|
/s/ Bradley C. Barron
|
|
|
Bradley C. Barron
|
|
|
President and Chief Executive Officer
|
|
|
November 5, 2015
|
|
|
|
By:
|
|
/s/ Thomas R. Shoaf
|
|
|
Thomas R. Shoaf
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
November 5, 2015
|
|
|
|
By:
|
|
/s/ Jorge A. del Alamo
|
|
|
Jorge A. del Alamo
|
|
|
Senior Vice President and Controller
|
|
|
November 5, 2015
|
Subsidiary
|
Jurisdiction of
Formation |
Restricted/
Unrestricted/Material
|
Ownership
Percentage |
Bicen Development Corporation N.V.
|
Sint Eustatius
|
Restricted
|
100%
|
Cooperatie NuStar Holdings U.A.
|
Netherlands
|
Restricted
|
100%
|
Diamond K Limited
|
Bermuda
|
Restricted
|
100%
|
NuStar Pipeline Company, LLC
|
Delaware
|
Restricted
|
100%
|
NuStar Pipeline Holding Company, LLC
|
Delaware
|
Restricted
|
100%
|
NuStar Pipeline Operating Partnership L.P.
|
Delaware
|
Restricted - Material
|
100%
|
NuStar Pipeline Partners L.P.
|
Delaware
|
Restricted
|
100%
|
LegacyStarServices, LLC
|
Delaware
|
Restricted
|
100%
|
NS Security Services, LLC
|
Delaware
|
Restricted
|
100%
|
NuStar Asphalt Chickasaw, LLC
|
Texas
|
Restricted
|
100%
|
NuStar Asphalt Holdings, Inc.
|
Delaware
|
Restricted
|
100%
|
NuStar Asphalt Holdings, LLC
|
Delaware
|
Restricted
|
100%
|
NuStar Refining, LLC
|
Delaware
|
Restricted
|
100%
|
NuStar Supply & Trading LLC
|
Delaware
|
Restricted
|
100%
|
NuStar Terminals B.V.
|
Netherlands
|
Restricted
|
100%
|
NuStar Eastham Limited
|
England
|
Restricted
|
100%
|
NuStar Terminals Limited
|
England
|
Restricted
|
100%
|
NuStar Energy Services, Inc.
|
Delaware
|
Restricted
|
100%
|
NuStar Burgos, LLC
|
Delaware
|
Restricted
|
100%
|
NuStar GP, Inc.
|
Delaware
|
Restricted
|
100%
|
NuStar Holdings B.V.
|
Netherlands
|
Restricted
|
100%
|
NuStar Internacioncal, S. deR.L. de C.V.
|
Mexico
|
Restricted
|
100%
|
NuStar Logistics, L.P.
|
Delaware
|
Restricted - Material
|
100%
|
Petroburgos, S. de R.L. de C.V.
|
Mexico
|
Restricted
|
100%
|
Point Tupper Marine Services Co.
|
Nova Scotia
|
Restricted
|
100%
|
NuStar Grangemouth Limited
|
England
|
Restricted
|
100%
|
Saba Company N.V.
|
Sint Eustatius
|
Restricted
|
100%
|
Seven Seas Steamship Company (Sint Eustatius) N.V.
|
Sint Eustatius
|
Restricted
|
100%
|
Shore Terminals LLC
|
Delaware
|
Restricted
|
100%
|
NuStar Texas Holdings, Inc.
|
Delaware
|
Restricted
|
100%
|
NuStar Terminals Texas, Inc.
|
Delaware
|
Restricted
|
100%
|
NuStar Terminals Partners TX L.P.
|
Delaware
|
Restricted
|
100%
|
NuStar Terminals Antilles N.V.
|
Curacao
|
Restricted
|
100%
|
NuStar Terminals Canada Co.
|
Nova Scotia
|
Restricted
|
100%
|
NuStar Terminals Canada Holdings Co
|
Nova Scotia
|
Restricted
|
100%
|
NuStar Terminals Canada Partnership
|
Nova Scotia
|
Restricted
|
100%
|
Subsidiary
|
Jurisdiction of
Formation |
Restricted/
Unrestricted/Material
|
Ownership
Percentage |
NuStar Terminals Corporation N.V.
|
Curacao/
Netherlands
|
Restricted
|
100%
|
NuStar Terminals Delaware, Inc.
|
Delaware
|
Restricted
|
100%
|
NuStar Caribe Terminals, Inc.
|
Delaware
|
Restricted
|
100%
|
NuStar Terminals International N.V.
|
Curacao
|
Restricted
|
100%
|
NuStar Terminals Marine Services N.V.
|
Sint Eustatius
|
Restricted
|
100%
|
NuStar Terminals New Jersey, Inc.
|
Delaware
|
Restricted
|
100%
|
NuStar Terminals N.V.
|
Sint Eustatius
|
Restricted
|
100%
|
NuStar Terminals Operations Partnership L.P.
|
Delaware
|
Restricted
|
100%
|
NuStar Terminals Services, Inc.
|
Delaware
|
Restricted
|
100%
|
ST Linden Terminal, LLC
|
Delaware
|
Restricted
|
100%
|
NuStar Finance LLC
|
Delaware
|
Restricted
|
100%
|
Star Creek Ranch, LLC
|
Delaware
|
Restricted
|
100%
|
|
Nine Months
|
|
|
||||||||||||||||||||
|
Ended
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
September 30,
|
|
Years Ended December 31,
|
||||||||||||||||||||
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
||||||||||||
Earnings:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) from continuing operations before provision for income taxes and income from equity investees
|
$
|
256,263
|
|
|
$
|
220,174
|
|
|
$
|
(132,786
|
)
|
|
$
|
(132,173
|
)
|
|
$
|
225,771
|
|
|
$
|
244,917
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed charges
|
113,130
|
|
|
153,236
|
|
|
149,090
|
|
|
122,286
|
|
|
109,825
|
|
|
102,642
|
|
||||||
Amortization of capitalized interest
|
1,168
|
|
|
1,385
|
|
|
1,216
|
|
|
1,012
|
|
|
793
|
|
|
642
|
|
||||||
Distributions from joint ventures
|
2,500
|
|
|
7,587
|
|
|
7,956
|
|
|
6,364
|
|
|
14,374
|
|
|
9,625
|
|
||||||
Less: Interest capitalized
|
(4,613
|
)
|
|
(5,667
|
)
|
|
(4,501
|
)
|
|
(7,737
|
)
|
|
(5,388
|
)
|
|
(3,701
|
)
|
||||||
Total earnings
|
$
|
368,448
|
|
|
$
|
376,715
|
|
|
$
|
20,975
|
|
|
$
|
(10,248
|
)
|
|
$
|
345,375
|
|
|
$
|
354,125
|
|
Fixed charges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense, net
|
$
|
98,309
|
|
|
$
|
132,281
|
|
|
$
|
127,119
|
|
|
$
|
90,535
|
|
|
$
|
81,539
|
|
|
$
|
77,764
|
|
Interest capitalized
|
4,613
|
|
|
5,667
|
|
|
4,501
|
|
|
7,737
|
|
|
5,388
|
|
|
3,701
|
|
||||||
Rental expense interest factor (a)
|
10,208
|
|
|
15,288
|
|
|
17,470
|
|
|
24,014
|
|
|
22,898
|
|
|
21,177
|
|
||||||
Total fixed charges
|
$
|
113,130
|
|
|
$
|
153,236
|
|
|
$
|
149,090
|
|
|
$
|
122,286
|
|
|
$
|
109,825
|
|
|
$
|
102,642
|
|
Ratio of earnings to fixed charges
|
3.3x
|
|
|
2.5x
|
|
|
(b)
|
|
|
(c)
|
|
|
3.1x
|
|
|
3.5x
|
|
(a)
|
The interest portion of rental expense represents one-third of rents, which is deemed representative of the interest portion of rental expense.
|
(b)
|
For the year ended December 31, 2013, earnings were insufficient to cover fixed charges by $128.1 million. The deficiency included a goodwill impairment loss of $304.5 million related to the Statia terminals reporting unit.
|
(c)
|
For the year ended December 31, 2012, earnings were insufficient to cover fixed charges by $132.5 million. The deficiency included the effect of $271.8 million of impairment losses mainly resulting from the write-down of the carrying value of our long-lived assets related to our asphalt operations, including fixed assets, goodwill, intangible assets and other long-term assets.
|
/s/ Bradley C. Barron
|
Bradley C. Barron
|
President and Chief Executive Officer
|
/s/ Thomas R. Shoaf
|
Thomas R. Shoaf
|
Executive Vice President and Chief Financial Officer
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.
|
/s/ Bradley C. Barron
|
Bradley C. Barron
|
President and Chief Executive Officer
|
November 5, 2015
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.
|
/s/ Thomas R. Shoaf
|
Thomas R. Shoaf
|
Executive Vice President and Chief Financial Officer
|
November 5, 2015
|