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 June 30, 2017
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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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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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Non-accelerated filer
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o
(Do not check if a smaller reporting company)
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Smaller reporting company
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o
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Emerging growth company
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o
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Item 1.
|
|
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Item 2.
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Item 3.
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Item 4.
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Item 6.
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Item 1.
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Financial Statements
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June 30,
2017 |
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December 31,
2016 |
||||
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(Unaudited)
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|
|
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
29,191
|
|
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$
|
35,942
|
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Accounts receivable, net of allowance for doubtful accounts of $7,768
and $7,756 as of June 30, 2017 and December 31, 2016, respectively
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147,548
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|
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170,293
|
|
||
Receivable from related party
|
86
|
|
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317
|
|
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Inventories
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25,772
|
|
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37,945
|
|
||
Other current assets
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28,265
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|
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132,686
|
|
||
Total current assets
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230,862
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|
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377,183
|
|
||
Property, plant and equipment, at cost
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5,974,427
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|
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5,435,278
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|
||
Accumulated depreciation and amortization
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(1,827,094
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)
|
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(1,712,995
|
)
|
||
Property, plant and equipment, net
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4,147,333
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|
|
3,722,283
|
|
||
Intangible assets, net
|
857,616
|
|
|
127,083
|
|
||
Goodwill
|
1,023,359
|
|
|
696,637
|
|
||
Deferred income tax asset
|
1,359
|
|
|
2,051
|
|
||
Other long-term assets, net
|
98,795
|
|
|
105,308
|
|
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Total assets
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$
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6,359,324
|
|
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$
|
5,030,545
|
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Liabilities and Partners’ Equity
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
92,668
|
|
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$
|
118,686
|
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Short-term debt
|
45,000
|
|
|
54,000
|
|
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Current portion of long-term debt
|
403,075
|
|
|
—
|
|
||
Accrued interest payable
|
40,232
|
|
|
34,030
|
|
||
Accrued liabilities
|
55,986
|
|
|
60,485
|
|
||
Taxes other than income tax
|
16,709
|
|
|
15,685
|
|
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Income tax payable
|
847
|
|
|
6,510
|
|
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Total current liabilities
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654,517
|
|
|
289,396
|
|
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Long-term debt
|
3,073,864
|
|
|
3,014,364
|
|
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Deferred income tax liability
|
22,863
|
|
|
22,204
|
|
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Other long-term liabilities
|
107,031
|
|
|
92,964
|
|
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Commitments and contingencies (Note 5)
|
|
|
|
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Partners’ equity:
|
|
|
|
||||
Series A preferred limited partners (9,060,000 preferred units outstanding as of June 30, 2017 and December 31, 2016)
|
218,340
|
|
|
218,400
|
|
||
Series B preferred limited partners (15,400,000 preferred units outstanding as of June 30, 2017)
|
371,613
|
|
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—
|
|
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Common limited partners (93,030,988 and 78,616,228 common units outstanding
as of June 30, 2017 and December 31, 2016, respectively)
|
1,958,435
|
|
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1,455,642
|
|
||
General partner
|
41,944
|
|
|
31,752
|
|
||
Accumulated other comprehensive loss
|
(89,283
|
)
|
|
(94,177
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)
|
||
Total partners’ equity
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2,501,049
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|
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1,611,617
|
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Total liabilities and partners’ equity
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$
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6,359,324
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|
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$
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5,030,545
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Three Months Ended June 30,
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Six Months Ended June 30,
|
||||||||||||
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2017
|
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2016
|
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2017
|
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2016
|
||||||||
Revenues:
|
|
|
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|
|
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|
||||||||
Service revenues
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$
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283,700
|
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$
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270,403
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$
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550,162
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$
|
536,969
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Product sales
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151,788
|
|
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167,401
|
|
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372,756
|
|
|
306,538
|
|
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Total revenues
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435,488
|
|
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437,804
|
|
|
922,918
|
|
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843,507
|
|
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Costs and expenses:
|
|
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Cost of product sales
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144,479
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|
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157,617
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|
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352,285
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|
|
286,607
|
|
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Operating expenses:
|
|
|
|
|
|
|
|
||||||||
Third parties
|
116,400
|
|
|
112,662
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|
|
217,426
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|
|
196,202
|
|
||||
Related party
|
—
|
|
|
—
|
|
|
—
|
|
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21,681
|
|
||||
Total operating expenses
|
116,400
|
|
|
112,662
|
|
|
217,426
|
|
|
217,883
|
|
||||
General and administrative expenses:
|
|
|
|
|
|
|
|
||||||||
Third parties
|
33,604
|
|
|
22,657
|
|
|
58,199
|
|
|
35,949
|
|
||||
Related party
|
—
|
|
|
—
|
|
|
—
|
|
|
10,493
|
|
||||
Total general and administrative expenses
|
33,604
|
|
|
22,657
|
|
|
58,199
|
|
|
46,442
|
|
||||
Depreciation and amortization expense
|
67,601
|
|
|
53,651
|
|
|
124,465
|
|
|
106,793
|
|
||||
Total costs and expenses
|
362,084
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|
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346,587
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|
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752,375
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|
657,725
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|
||||
Operating income
|
73,404
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|
|
91,217
|
|
|
170,543
|
|
|
185,782
|
|
||||
Interest expense, net
|
(45,612
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)
|
|
(34,229
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)
|
|
(82,026
|
)
|
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(68,352
|
)
|
||||
Other income (expense), net
|
88
|
|
|
(201
|
)
|
|
228
|
|
|
(372
|
)
|
||||
Income before income tax expense
|
27,880
|
|
|
56,787
|
|
|
88,745
|
|
|
117,058
|
|
||||
Income tax expense
|
1,630
|
|
|
4,270
|
|
|
4,555
|
|
|
7,140
|
|
||||
Net income
|
$
|
26,250
|
|
|
$
|
52,517
|
|
|
$
|
84,190
|
|
|
$
|
109,918
|
|
|
|
|
|
|
|
|
|
||||||||
Basic and diluted net income per common unit (Note 11)
|
$
|
0.05
|
|
|
$
|
0.52
|
|
|
$
|
0.51
|
|
|
$
|
1.09
|
|
Basic weighted-average common units outstanding
|
90,345,469
|
|
|
77,886,219
|
|
|
84,526,506
|
|
|
77,886,148
|
|
||||
Diluted weighted-average common units outstanding
|
90,345,469
|
|
|
77,939,279
|
|
|
84,526,506
|
|
|
77,943,702
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Comprehensive income
|
$
|
27,381
|
|
|
$
|
29,178
|
|
|
$
|
89,084
|
|
|
$
|
71,801
|
|
|
Six Months Ended June 30,
|
||||||
|
2017
|
|
2016
|
||||
Cash Flows from Operating Activities:
|
|
|
|
||||
Net income
|
$
|
84,190
|
|
|
$
|
109,918
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization expense
|
124,465
|
|
|
106,793
|
|
||
Unit-based compensation expense
|
5,117
|
|
|
2,869
|
|
||
Amortization of debt related items
|
3,146
|
|
|
3,965
|
|
||
Gain from sale or disposition of assets
|
(36
|
)
|
|
(2
|
)
|
||
Deferred income tax expense
|
23
|
|
|
2,562
|
|
||
Changes in current assets and current liabilities (Note 12)
|
(15,344
|
)
|
|
(15,274
|
)
|
||
Other, net
|
7,427
|
|
|
4,202
|
|
||
Net cash provided by operating activities
|
208,988
|
|
|
215,033
|
|
||
Cash Flows from Investing Activities:
|
|
|
|
||||
Capital expenditures
|
(108,849
|
)
|
|
(95,361
|
)
|
||
Change in accounts payable related to capital expenditures
|
6,851
|
|
|
(12,674
|
)
|
||
Proceeds from sale or disposition of assets
|
1,966
|
|
|
—
|
|
||
Proceeds from Axeon term loan
|
110,000
|
|
|
—
|
|
||
Acquisitions
|
(1,476,719
|
)
|
|
—
|
|
||
Net cash used in investing activities
|
(1,466,751
|
)
|
|
(108,035
|
)
|
||
Cash Flows from Financing Activities:
|
|
|
|
||||
Proceeds from long-term debt borrowings
|
1,037,161
|
|
|
348,904
|
|
||
Proceeds from short-term debt borrowings
|
565,000
|
|
|
279,000
|
|
||
Proceeds from note offering, net of issuance costs
|
543,313
|
|
|
—
|
|
||
Long-term debt repayments
|
(1,122,239
|
)
|
|
(184,192
|
)
|
||
Short-term debt repayments
|
(574,000
|
)
|
|
(363,000
|
)
|
||
Proceeds from issuance of preferred units, net of issuance costs
|
371,802
|
|
|
—
|
|
||
Proceeds from issuance of common units, net of issuance costs
|
643,858
|
|
|
—
|
|
||
Contributions from general partner
|
13,597
|
|
|
—
|
|
||
Distributions to preferred unitholders
|
(10,696
|
)
|
|
—
|
|
||
Distributions to common unitholders and general partner
|
(216,139
|
)
|
|
(196,102
|
)
|
||
Increase (decrease) in cash book overdrafts
|
1,321
|
|
|
(11,166
|
)
|
||
Other, net
|
(2,615
|
)
|
|
(674
|
)
|
||
Net cash provided by (used in) financing activities
|
1,250,363
|
|
|
(127,230
|
)
|
||
Effect of foreign exchange rate changes on cash
|
649
|
|
|
4,389
|
|
||
Net decrease in cash and cash equivalents
|
(6,751
|
)
|
|
(15,843
|
)
|
||
Cash and cash equivalents as of the beginning of the period
|
35,942
|
|
|
118,862
|
|
||
Cash and cash equivalents as of the end of the period
|
$
|
29,191
|
|
|
$
|
103,019
|
|
|
Preliminary Purchase Price Allocation
|
||
|
(Thousands of Dollars)
|
||
Accounts receivable
|
$
|
4,916
|
|
Other current assets
|
2,476
|
|
|
Property, plant and equipment, net
|
396,603
|
|
|
Intangible assets (a)
|
750,000
|
|
|
Goodwill (b)
|
326,722
|
|
|
Other long-term assets, net
|
2,125
|
|
|
Current liabilities
|
(26,971
|
)
|
|
Preliminary purchase price allocation, net of cash acquired
|
1,455,871
|
|
|
Pending closing adjustment
|
20,848
|
|
|
Cash disbursed at closing
|
$
|
1,476,719
|
|
(a)
|
Intangible assets, which consist of customer contracts and relationships, are expected to be amortized over a weighted average period of
20 years
.
|
(b)
|
The goodwill acquired represents the expected benefit from entering new geographic areas and the anticipated opportunities to generate future cash flows from the assets acquired and potential future projects.
|
•
|
we issued approximately
14.4 million
common units;
|
•
|
we received a contribution from our general partner of
$13.6 million
to maintain its
2%
interest;
|
•
|
we issued
15.4 million
Series B Preferred Units;
|
•
|
we issued
$550.0 million
of
5.625%
senior notes;
|
•
|
additional depreciation and amortization that would have been incurred assuming the fair value adjustments to property, plant and equipment and intangible assets reflected in the preliminary purchase price allocation above have been applied; and
|
•
|
we satisfied Navigator’s outstanding obligations under its revolving credit agreement.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(Thousands of Dollars, Except Per Unit Data)
|
||||||||||||||
Revenues
|
$
|
439,933
|
|
|
$
|
443,314
|
|
|
$
|
937,317
|
|
|
$
|
852,169
|
|
Net income
|
$
|
21,211
|
|
|
$
|
33,378
|
|
|
$
|
63,659
|
|
|
$
|
70,118
|
|
|
|
|
|
|
|
|
|
||||||||
Basic and diluted net (loss) income per common unit
|
$
|
(0.03
|
)
|
|
$
|
0.15
|
|
|
$
|
0.16
|
|
|
$
|
0.34
|
|
|
June 30, 2017
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
(Thousands of Dollars)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Other current assets:
|
|
|
|
|
|
|
|
||||||||
Product imbalances
|
$
|
5,249
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,249
|
|
Total
|
$
|
5,249
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,249
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Accrued liabilities:
|
|
|
|
|
|
|
|
||||||||
Product imbalances
|
$
|
(3,031
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(3,031
|
)
|
Commodity derivatives
|
(451
|
)
|
|
—
|
|
|
—
|
|
|
(451
|
)
|
||||
Interest rate swaps
|
—
|
|
|
(6,392
|
)
|
|
—
|
|
|
(6,392
|
)
|
||||
Other long-term liabilities:
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
—
|
|
|
(2,867
|
)
|
|
—
|
|
|
(2,867
|
)
|
||||
Total
|
$
|
(3,482
|
)
|
|
$
|
(9,259
|
)
|
|
$
|
—
|
|
|
$
|
(12,741
|
)
|
|
December 31, 2016
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
(Thousands of Dollars)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Other current assets:
|
|
|
|
|
|
|
|
||||||||
Product imbalances
|
$
|
1,551
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,551
|
|
Commodity derivatives
|
—
|
|
|
155
|
|
|
—
|
|
|
155
|
|
||||
Other long-term assets, net:
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
—
|
|
|
1,314
|
|
|
—
|
|
|
1,314
|
|
||||
Total
|
$
|
1,551
|
|
|
$
|
1,469
|
|
|
$
|
—
|
|
|
$
|
3,020
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Accrued liabilities:
|
|
|
|
|
|
|
|
||||||||
Product imbalances
|
$
|
(1,577
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1,577
|
)
|
Commodity derivatives
|
(4,887
|
)
|
|
(165
|
)
|
|
—
|
|
|
(5,052
|
)
|
||||
Other long-term liabilities:
|
|
|
|
|
|
|
|
||||||||
Guarantee liability
|
—
|
|
|
—
|
|
|
(1,230
|
)
|
|
(1,230
|
)
|
||||
Interest rate swaps
|
—
|
|
|
(2,632
|
)
|
|
—
|
|
|
(2,632
|
)
|
||||
Total
|
$
|
(6,464
|
)
|
|
$
|
(2,797
|
)
|
|
$
|
(1,230
|
)
|
|
$
|
(10,491
|
)
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||
|
Long-term Debt
|
|
Long-term Debt
|
|
Axeon Term Loan
|
||||||
|
(Thousands of Dollars)
|
||||||||||
Fair value
|
$
|
3,591,708
|
|
|
$
|
3,084,762
|
|
|
$
|
110,000
|
|
Carrying amount
|
$
|
3,476,939
|
|
|
$
|
3,014,364
|
|
|
$
|
110,000
|
|
|
|
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||||||
|
Balance Sheet Location
|
|
June 30,
2017 |
|
December 31,
2016 |
|
June 30,
2017 |
|
December 31,
2016 |
||||||||
|
|
|
(Thousands of Dollars)
|
||||||||||||||
Derivatives Designated as
Hedging Instruments:
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
Other long-term assets, net
|
|
$
|
—
|
|
|
$
|
1,314
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Commodity contracts
|
Accrued liabilities
|
|
162
|
|
|
144
|
|
|
(188
|
)
|
|
(3,566
|
)
|
||||
Interest rate swaps
|
Accrued liabilities
|
|
—
|
|
|
—
|
|
|
(6,392
|
)
|
|
—
|
|
||||
Interest rate swaps
|
Other long-term liabilities
|
|
—
|
|
|
—
|
|
|
(2,867
|
)
|
|
(2,632
|
)
|
||||
Total
|
|
|
162
|
|
|
1,458
|
|
|
(9,447
|
)
|
|
(6,198
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
Derivatives Not Designated
as Hedging Instruments:
|
|
|
|
|
|
|
|
|
|
||||||||
Commodity contracts
|
Other current assets
|
|
—
|
|
|
265
|
|
|
—
|
|
|
(110
|
)
|
||||
Commodity contracts
|
Accrued liabilities
|
|
1,387
|
|
|
9,128
|
|
|
(1,812
|
)
|
|
(10,758
|
)
|
||||
Total
|
|
|
1,387
|
|
|
9,393
|
|
|
(1,812
|
)
|
|
(10,868
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
Total Derivatives
|
|
|
$
|
1,549
|
|
|
$
|
10,851
|
|
|
$
|
(11,259
|
)
|
|
$
|
(17,066
|
)
|
Commodity Contracts
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
|
|
(Thousands of Dollars)
|
||||||
Net amounts of assets presented in the consolidated balance sheets
|
|
$
|
—
|
|
|
$
|
155
|
|
Net amounts of liabilities presented in the consolidated balance sheets
|
|
$
|
(451
|
)
|
|
$
|
(5,052
|
)
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(Thousands of Dollars)
|
||||||||||||||
Derivatives Designated as Fair Value Hedging Instruments:
|
|
|
|
|
|
|
|
||||||||
Gain (loss) recognized in income on derivative
|
$
|
364
|
|
|
$
|
(5,792
|
)
|
|
$
|
2,461
|
|
|
$
|
(6,804
|
)
|
(Loss) gain recognized in income on hedged item
|
(313
|
)
|
|
6,938
|
|
|
(2,147
|
)
|
|
9,804
|
|
||||
Gain recognized in income for ineffective portion
|
51
|
|
|
1,146
|
|
|
314
|
|
|
3,000
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Derivatives Not Designated as Hedging Instruments:
|
|
|
|
|
|
|
|
||||||||
Gain (loss) recognized in income on derivative
|
$
|
52
|
|
|
$
|
(724
|
)
|
|
$
|
(86
|
)
|
|
$
|
(4
|
)
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(Thousands of Dollars)
|
||||||||||||||
Derivatives Designated as Cash Flow Hedging Instruments:
|
|
|
|
|
|
|
|
||||||||
Loss recognized in other comprehensive income on derivative (effective portion)
|
$
|
(7,980
|
)
|
|
$
|
(20,200
|
)
|
|
$
|
(7,941
|
)
|
|
$
|
(50,178
|
)
|
Loss reclassified from AOCI into interest expense, net (effective portion)
|
$
|
(1,729
|
)
|
|
$
|
(2,158
|
)
|
|
$
|
(3,528
|
)
|
|
$
|
(4,380
|
)
|
|
Pension Plans
|
|
Other Postretirement
Benefits
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(Thousands of Dollars)
|
||||||||||||||
For the three months ended June 30:
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
2,239
|
|
|
$
|
1,926
|
|
|
$
|
113
|
|
|
$
|
105
|
|
Interest cost
|
1,127
|
|
|
1,006
|
|
|
108
|
|
|
100
|
|
||||
Expected return on assets
|
(1,602
|
)
|
|
(1,351
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of prior service credit
|
(516
|
)
|
|
(516
|
)
|
|
(286
|
)
|
|
(286
|
)
|
||||
Amortization of net loss
|
371
|
|
|
273
|
|
|
48
|
|
|
45
|
|
||||
Net periodic benefit cost (income)
|
$
|
1,619
|
|
|
$
|
1,338
|
|
|
$
|
(17
|
)
|
|
$
|
(36
|
)
|
|
|
|
|
|
|
|
|
||||||||
For the six months ended June 30:
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
4,478
|
|
|
$
|
3,852
|
|
|
$
|
226
|
|
|
$
|
210
|
|
Interest cost
|
2,254
|
|
|
2,012
|
|
|
216
|
|
|
200
|
|
||||
Expected return on assets
|
(3,205
|
)
|
|
(2,703
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of prior service credit
|
(1,031
|
)
|
|
(1,033
|
)
|
|
(572
|
)
|
|
(572
|
)
|
||||
Amortization of net loss
|
742
|
|
|
546
|
|
|
96
|
|
|
90
|
|
||||
Net periodic benefit cost (income)
|
$
|
3,238
|
|
|
$
|
2,674
|
|
|
$
|
(34
|
)
|
|
$
|
(72
|
)
|
Balance as of January 1, 2017
|
$
|
1,611,617
|
|
Net income
|
84,190
|
|
|
Unit-based compensation expense
|
2,564
|
|
|
Other comprehensive income
|
4,894
|
|
|
Distributions to partners
|
(230,902
|
)
|
|
Issuance of preferred and common units, including contribution from general partner
|
1,029,257
|
|
|
Other
|
(571
|
)
|
|
Balance as of June 30, 2017
|
$
|
2,501,049
|
|
|
Foreign
Currency
Translation
|
|
Cash Flow
Hedges
|
|
Pension and
Other
Postretirement
Benefits
|
|
Total
|
||||||||
|
(Thousands of Dollars)
|
||||||||||||||
Balance as of January 1, 2017
|
$
|
(69,069
|
)
|
|
$
|
(22,258
|
)
|
|
$
|
(2,850
|
)
|
|
$
|
(94,177
|
)
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss) before
reclassification adjustments
|
10,072
|
|
|
(7,941
|
)
|
|
—
|
|
|
2,131
|
|
||||
Net gain on pension costs reclassified into operating
expense
|
—
|
|
|
—
|
|
|
(572
|
)
|
|
(572
|
)
|
||||
Net gain on pension costs reclassified into general and
administrative expense
|
—
|
|
|
—
|
|
|
(193
|
)
|
|
(193
|
)
|
||||
Net loss on cash flow hedges reclassified into interest
expense, net
|
—
|
|
|
3,528
|
|
|
—
|
|
|
3,528
|
|
||||
Other comprehensive income (loss)
|
10,072
|
|
|
(4,413
|
)
|
|
(765
|
)
|
|
4,894
|
|
||||
Balance as of June 30, 2017
|
$
|
(58,997
|
)
|
|
$
|
(26,671
|
)
|
|
$
|
(3,615
|
)
|
|
$
|
(89,283
|
)
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(Thousands of Dollars, Except Percentage Data)
|
||||||||||||||
Net income attributable to NuStar Energy L.P.
|
$
|
26,250
|
|
|
$
|
52,517
|
|
|
$
|
84,190
|
|
|
$
|
109,918
|
|
Less preferred limited partner interest
|
9,950
|
|
|
—
|
|
|
14,763
|
|
|
—
|
|
||||
Less general partner incentive distribution
|
10,912
|
|
|
10,805
|
|
|
23,824
|
|
|
21,610
|
|
||||
Net income after general partner incentive distribution and preferred limited partner interest
|
5,388
|
|
|
41,712
|
|
|
45,603
|
|
|
88,308
|
|
||||
General partner interest allocation
|
2
|
%
|
|
2
|
%
|
|
2
|
%
|
|
2
|
%
|
||||
General partner interest allocation of net income
|
108
|
|
|
834
|
|
|
912
|
|
|
1,766
|
|
||||
General partner incentive distribution
|
10,912
|
|
|
10,805
|
|
|
23,824
|
|
|
21,610
|
|
||||
Net income applicable to general partner
|
$
|
11,020
|
|
|
$
|
11,639
|
|
|
$
|
24,736
|
|
|
$
|
23,376
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(Thousands of Dollars, Except Per Unit Data)
|
||||||||||||||
General partner interest
|
$
|
2,302
|
|
|
$
|
1,961
|
|
|
$
|
4,645
|
|
|
$
|
3,922
|
|
General partner incentive distribution
|
10,912
|
|
|
10,805
|
|
|
23,824
|
|
|
21,610
|
|
||||
Total general partner distribution
|
13,214
|
|
|
12,766
|
|
|
28,469
|
|
|
25,532
|
|
||||
Common limited partners’ distribution
|
101,869
|
|
|
85,285
|
|
|
203,782
|
|
|
170,570
|
|
||||
Total cash distributions
|
$
|
115,083
|
|
|
$
|
98,051
|
|
|
$
|
232,251
|
|
|
$
|
196,102
|
|
|
|
|
|
|
|
|
|
||||||||
Cash distributions per unit applicable to common limited partners
|
$
|
1.095
|
|
|
$
|
1.095
|
|
|
$
|
2.190
|
|
|
$
|
2.190
|
|
Quarter Ended
|
|
Cash
Distributions
Per Unit
|
|
Total Cash
Distributions
|
|
Record Date
|
|
Payment Date
|
||||
|
|
|
|
(Thousands of Dollars)
|
|
|
|
|
||||
June 30, 2017 (a)
|
|
$
|
1.095
|
|
|
$
|
115,083
|
|
|
August 7, 2017
|
|
August 11, 2017
|
March 31, 2017
|
|
$
|
1.095
|
|
|
$
|
117,168
|
|
|
May 8, 2017
|
|
May 12, 2017
|
December 31, 2016
|
|
$
|
1.095
|
|
|
$
|
98,971
|
|
|
February 8, 2017
|
|
February 13, 2017
|
(a)
|
The distribution was announced on
July 28, 2017
.
|
Period
|
|
Cash
Distributions
Per Unit
|
|
Total Cash
Distributions
|
|
Record Date
|
|
Payment Date
|
||||
|
|
|
|
(Thousands of Dollars)
|
|
|
|
|
||||
Series A Preferred Units:
|
|
|
|
|
|
|
|
|
||||
June 15, 2017 - September 14, 2017 (a)
|
|
$
|
0.53125
|
|
|
$
|
4,813
|
|
|
September 1, 2017
|
|
September 15, 2017
|
March 15, 2017 - June 14, 2017
|
|
$
|
0.53125
|
|
|
$
|
4,813
|
|
|
June 1, 2017
|
|
June 15, 2017
|
November 25, 2016 - March 14, 2017
|
|
$
|
0.64930556
|
|
|
$
|
5,883
|
|
|
March 1, 2017
|
|
March 15, 2017
|
|
|
|
|
|
|
|
|
|
||||
Series B Preferred Units:
|
|
|
|
|
|
|
|
|
||||
April 28, 2017 - September 14, 2017 (a)
|
|
$
|
0.725434028
|
|
|
$
|
11,172
|
|
|
September 1, 2017
|
|
September 15, 2017
|
(a)
|
The distribution was announced on
July 28, 2017
.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(Thousands of Dollars, Except Unit and Per Unit Data)
|
||||||||||||||
Net income attributable to NuStar Energy L.P.
|
$
|
26,250
|
|
|
$
|
52,517
|
|
|
$
|
84,190
|
|
|
$
|
109,918
|
|
Less: Distributions to general partner (including incentive
distribution rights)
|
13,214
|
|
|
12,766
|
|
|
28,469
|
|
|
25,532
|
|
||||
Less: Distributions to common limited partners
|
101,869
|
|
|
85,285
|
|
|
203,782
|
|
|
170,570
|
|
||||
Less: Distributions to preferred limited partners
|
9,950
|
|
|
—
|
|
|
14,763
|
|
|
—
|
|
||||
Less: Distribution equivalent rights to restricted units
|
712
|
|
|
657
|
|
|
1,427
|
|
|
1,319
|
|
||||
Distributions in excess of earnings
|
$
|
(99,495
|
)
|
|
$
|
(46,191
|
)
|
|
$
|
(164,251
|
)
|
|
$
|
(87,503
|
)
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to common units:
|
|
|
|
|
|
|
|
||||||||
Distributions to common limited partners
|
$
|
101,869
|
|
|
$
|
85,285
|
|
|
$
|
203,782
|
|
|
$
|
170,570
|
|
Allocation of distributions in excess of earnings
|
(97,505
|
)
|
|
(45,267
|
)
|
|
(160,966
|
)
|
|
(85,752
|
)
|
||||
Total
|
$
|
4,364
|
|
|
$
|
40,018
|
|
|
$
|
42,816
|
|
|
$
|
84,818
|
|
|
|
|
|
|
|
|
|
||||||||
Basic weighted-average common units outstanding
|
90,345,469
|
|
|
77,886,219
|
|
|
84,526,506
|
|
|
77,886,148
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Diluted common units outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic weighted-average common units outstanding
|
90,345,469
|
|
|
77,886,219
|
|
|
84,526,506
|
|
|
77,886,148
|
|
||||
Effect of dilutive potential common units
|
—
|
|
|
53,060
|
|
|
—
|
|
|
57,554
|
|
||||
Diluted weighted-average common units outstanding
|
90,345,469
|
|
|
77,939,279
|
|
|
84,526,506
|
|
|
77,943,702
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Basic and diluted net income per common unit
|
$
|
0.05
|
|
|
$
|
0.52
|
|
|
$
|
0.51
|
|
|
$
|
1.09
|
|
|
Six Months Ended June 30,
|
||||||
|
2017
|
|
2016
|
||||
|
(Thousands of Dollars)
|
||||||
Decrease (increase) in current assets:
|
|
|
|
||||
Accounts receivable
|
$
|
48,875
|
|
|
$
|
(572
|
)
|
Receivable from related party
|
231
|
|
|
—
|
|
||
Inventories
|
13,005
|
|
|
99
|
|
||
Other current assets
|
(2,388
|
)
|
|
5,064
|
|
||
Increase (decrease) in current liabilities:
|
|
|
|
||||
Accounts payable
|
(57,822
|
)
|
|
(4,717
|
)
|
||
Payable to related party, net
|
—
|
|
|
697
|
|
||
Accrued interest payable
|
6,234
|
|
|
(393
|
)
|
||
Accrued liabilities
|
(14,703
|
)
|
|
(12,321
|
)
|
||
Taxes other than income tax
|
(3,094
|
)
|
|
(348
|
)
|
||
Income tax payable
|
(5,682
|
)
|
|
(2,783
|
)
|
||
Changes in current assets and current liabilities
|
$
|
(15,344
|
)
|
|
$
|
(15,274
|
)
|
•
|
current assets and current liabilities acquired during the period;
|
•
|
the change in the amount accrued for capital expenditures; and
|
•
|
the effect of foreign currency translation.
|
|
Six Months Ended June 30,
|
||||||
|
2017
|
|
2016
|
||||
|
(Thousands of Dollars)
|
||||||
Cash paid for interest, net of amount capitalized
|
$
|
70,119
|
|
|
$
|
70,280
|
|
Cash paid for income taxes, net of tax refunds received
|
$
|
9,556
|
|
|
$
|
8,826
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(Thousands of Dollars)
|
||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Pipeline
|
$
|
126,740
|
|
|
$
|
121,575
|
|
|
$
|
247,980
|
|
|
$
|
240,448
|
|
Storage:
|
|
|
|
|
|
|
|
||||||||
Third parties
|
154,830
|
|
|
146,367
|
|
|
298,318
|
|
|
292,751
|
|
||||
Intersegment
|
3,729
|
|
|
5,507
|
|
|
7,672
|
|
|
11,522
|
|
||||
Total storage
|
158,559
|
|
|
151,874
|
|
|
305,990
|
|
|
304,273
|
|
||||
Fuels marketing
|
153,918
|
|
|
169,862
|
|
|
376,620
|
|
|
310,308
|
|
||||
Consolidation and intersegment eliminations
|
(3,729
|
)
|
|
(5,507
|
)
|
|
(7,672
|
)
|
|
(11,522
|
)
|
||||
Total revenues
|
$
|
435,488
|
|
|
$
|
437,804
|
|
|
$
|
922,918
|
|
|
$
|
843,507
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income:
|
|
|
|
|
|
|
|
||||||||
Pipeline
|
$
|
52,868
|
|
|
$
|
63,552
|
|
|
$
|
117,896
|
|
|
$
|
127,817
|
|
Storage
|
56,049
|
|
|
51,063
|
|
|
109,808
|
|
|
108,076
|
|
||||
Fuels marketing
|
289
|
|
|
1,392
|
|
|
5,429
|
|
|
619
|
|
||||
Consolidation and intersegment eliminations
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
||||
Total segment operating income
|
109,207
|
|
|
116,008
|
|
|
233,134
|
|
|
236,513
|
|
||||
General and administrative expenses
|
33,604
|
|
|
22,657
|
|
|
58,199
|
|
|
46,442
|
|
||||
Other depreciation and amortization expense
|
2,199
|
|
|
2,134
|
|
|
4,392
|
|
|
4,289
|
|
||||
Total operating income
|
$
|
73,404
|
|
|
$
|
91,217
|
|
|
$
|
170,543
|
|
|
$
|
185,782
|
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
|
(Thousands of Dollars)
|
||||||
Pipeline
|
$
|
3,458,700
|
|
|
$
|
2,024,633
|
|
Storage
|
2,605,122
|
|
|
2,522,586
|
|
||
Fuels marketing
|
103,623
|
|
|
168,347
|
|
||
Total segment assets
|
6,167,445
|
|
|
4,715,566
|
|
||
Other partnership assets
|
191,879
|
|
|
314,979
|
|
||
Total consolidated assets
|
$
|
6,359,324
|
|
|
$
|
5,030,545
|
|
|
NuStar
Energy
|
|
NuStar
Logistics
|
|
NuPOP
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
867
|
|
|
$
|
64
|
|
|
$
|
—
|
|
|
$
|
28,260
|
|
|
$
|
—
|
|
|
$
|
29,191
|
|
Receivables, net
|
—
|
|
|
93
|
|
|
—
|
|
|
147,541
|
|
|
—
|
|
|
147,634
|
|
||||||
Inventories
|
—
|
|
|
1,977
|
|
|
3,254
|
|
|
20,541
|
|
|
—
|
|
|
25,772
|
|
||||||
Other current assets
|
69
|
|
|
12,623
|
|
|
5,475
|
|
|
10,134
|
|
|
(36
|
)
|
|
28,265
|
|
||||||
Intercompany receivable
|
—
|
|
|
3,088,723
|
|
|
—
|
|
|
—
|
|
|
(3,088,723
|
)
|
|
—
|
|
||||||
Total current assets
|
936
|
|
|
3,103,480
|
|
|
8,729
|
|
|
206,476
|
|
|
(3,088,759
|
)
|
|
230,862
|
|
||||||
Property, plant and equipment, net
|
—
|
|
|
1,911,890
|
|
|
578,504
|
|
|
1,656,939
|
|
|
—
|
|
|
4,147,333
|
|
||||||
Intangible assets, net
|
—
|
|
|
63,163
|
|
|
—
|
|
|
794,453
|
|
|
—
|
|
|
857,616
|
|
||||||
Goodwill
|
—
|
|
|
149,453
|
|
|
170,652
|
|
|
703,254
|
|
|
—
|
|
|
1,023,359
|
|
||||||
Investment in wholly owned
subsidiaries
|
3,085,078
|
|
|
28,711
|
|
|
1,270,678
|
|
|
842,841
|
|
|
(5,227,308
|
)
|
|
—
|
|
||||||
Deferred income tax asset
|
—
|
|
|
—
|
|
|
—
|
|
|
1,359
|
|
|
—
|
|
|
1,359
|
|
||||||
Other long-term assets, net
|
378
|
|
|
60,588
|
|
|
28,039
|
|
|
9,790
|
|
|
—
|
|
|
98,795
|
|
||||||
Total assets
|
$
|
3,086,392
|
|
|
$
|
5,317,285
|
|
|
$
|
2,056,602
|
|
|
$
|
4,215,112
|
|
|
$
|
(8,316,067
|
)
|
|
$
|
6,359,324
|
|
Liabilities and Partners’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accounts payable
|
$
|
6,330
|
|
|
$
|
21,064
|
|
|
$
|
5,573
|
|
|
$
|
59,701
|
|
|
$
|
—
|
|
|
$
|
92,668
|
|
Short-term debt
|
—
|
|
|
45,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
45,000
|
|
||||||
Current portion of long-term debt
|
—
|
|
|
350,021
|
|
|
—
|
|
|
53,054
|
|
|
—
|
|
|
403,075
|
|
||||||
Accrued interest payable
|
—
|
|
|
40,206
|
|
|
—
|
|
|
26
|
|
|
—
|
|
|
40,232
|
|
||||||
Accrued liabilities
|
720
|
|
|
19,929
|
|
|
11,434
|
|
|
23,903
|
|
|
—
|
|
|
55,986
|
|
||||||
Taxes other than income tax
|
8
|
|
|
5,867
|
|
|
3,819
|
|
|
7,015
|
|
|
—
|
|
|
16,709
|
|
||||||
Income tax payable
|
—
|
|
|
—
|
|
|
2
|
|
|
881
|
|
|
(36
|
)
|
|
847
|
|
||||||
Intercompany payable
|
489,002
|
|
|
—
|
|
|
1,182,082
|
|
|
1,417,639
|
|
|
(3,088,723
|
)
|
|
—
|
|
||||||
Total current liabilities
|
496,060
|
|
|
482,087
|
|
|
1,202,910
|
|
|
1,562,219
|
|
|
(3,088,759
|
)
|
|
654,517
|
|
||||||
Long-term debt
|
—
|
|
|
3,073,864
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,073,864
|
|
||||||
Deferred income tax liability
|
—
|
|
|
1,862
|
|
|
13
|
|
|
20,988
|
|
|
—
|
|
|
22,863
|
|
||||||
Other long-term liabilities
|
—
|
|
|
43,538
|
|
|
10,973
|
|
|
52,520
|
|
|
—
|
|
|
107,031
|
|
||||||
Total partners’ equity
|
2,590,332
|
|
|
1,715,934
|
|
|
842,706
|
|
|
2,579,385
|
|
|
(5,227,308
|
)
|
|
2,501,049
|
|
||||||
Total liabilities and
partners’ equity
|
$
|
3,086,392
|
|
|
$
|
5,317,285
|
|
|
$
|
2,056,602
|
|
|
$
|
4,215,112
|
|
|
$
|
(8,316,067
|
)
|
|
$
|
6,359,324
|
|
|
NuStar
Energy
|
|
NuStar
Logistics
|
|
NuPOP
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
870
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
35,067
|
|
|
$
|
—
|
|
|
$
|
35,942
|
|
Receivables, net
|
—
|
|
|
3,040
|
|
|
—
|
|
|
167,570
|
|
|
—
|
|
|
170,610
|
|
||||||
Inventories
|
—
|
|
|
2,216
|
|
|
2,005
|
|
|
33,724
|
|
|
—
|
|
|
37,945
|
|
||||||
Other current assets
|
61
|
|
|
120,350
|
|
|
1,829
|
|
|
10,446
|
|
|
—
|
|
|
132,686
|
|
||||||
Intercompany receivable
|
—
|
|
|
1,308,415
|
|
|
—
|
|
|
57,785
|
|
|
(1,366,200
|
)
|
|
—
|
|
||||||
Total current assets
|
931
|
|
|
1,434,026
|
|
|
3,834
|
|
|
304,592
|
|
|
(1,366,200
|
)
|
|
377,183
|
|
||||||
Property, plant and equipment, net
|
—
|
|
|
1,935,172
|
|
|
589,139
|
|
|
1,197,972
|
|
|
—
|
|
|
3,722,283
|
|
||||||
Intangible assets, net
|
—
|
|
|
71,033
|
|
|
—
|
|
|
56,050
|
|
|
—
|
|
|
127,083
|
|
||||||
Goodwill
|
—
|
|
|
149,453
|
|
|
170,652
|
|
|
376,532
|
|
|
—
|
|
|
696,637
|
|
||||||
Investment in wholly owned
subsidiaries
|
1,964,736
|
|
|
34,778
|
|
|
1,221,717
|
|
|
874,649
|
|
|
(4,095,880
|
)
|
|
—
|
|
||||||
Deferred income tax asset
|
—
|
|
|
—
|
|
|
—
|
|
|
2,051
|
|
|
—
|
|
|
2,051
|
|
||||||
Other long-term assets, net
|
1,255
|
|
|
63,586
|
|
|
28,587
|
|
|
11,880
|
|
|
—
|
|
|
105,308
|
|
||||||
Total assets
|
$
|
1,966,922
|
|
|
$
|
3,688,048
|
|
|
$
|
2,013,929
|
|
|
$
|
2,823,726
|
|
|
$
|
(5,462,080
|
)
|
|
$
|
5,030,545
|
|
Liabilities and Partners’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accounts payable
|
$
|
2,436
|
|
|
$
|
24,272
|
|
|
$
|
7,124
|
|
|
$
|
84,854
|
|
|
$
|
—
|
|
|
$
|
118,686
|
|
Short-term debt
|
—
|
|
|
54,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
54,000
|
|
||||||
Accrued interest payable
|
—
|
|
|
34,008
|
|
|
—
|
|
|
22
|
|
|
—
|
|
|
34,030
|
|
||||||
Accrued liabilities
|
1,070
|
|
|
7,118
|
|
|
10,766
|
|
|
41,531
|
|
|
—
|
|
|
60,485
|
|
||||||
Taxes other than income tax
|
125
|
|
|
6,854
|
|
|
3,253
|
|
|
5,453
|
|
|
—
|
|
|
15,685
|
|
||||||
Income tax payable
|
—
|
|
|
1,326
|
|
|
5
|
|
|
5,179
|
|
|
—
|
|
|
6,510
|
|
||||||
Intercompany payable
|
257,497
|
|
|
—
|
|
|
1,108,703
|
|
|
—
|
|
|
(1,366,200
|
)
|
|
—
|
|
||||||
Total current liabilities
|
261,128
|
|
|
127,578
|
|
|
1,129,851
|
|
|
137,039
|
|
|
(1,366,200
|
)
|
|
289,396
|
|
||||||
Long-term debt
|
—
|
|
|
2,956,338
|
|
|
—
|
|
|
58,026
|
|
|
—
|
|
|
3,014,364
|
|
||||||
Deferred income tax liability
|
—
|
|
|
1,862
|
|
|
13
|
|
|
20,329
|
|
|
—
|
|
|
22,204
|
|
||||||
Other long-term liabilities
|
—
|
|
|
34,358
|
|
|
9,436
|
|
|
49,170
|
|
|
—
|
|
|
92,964
|
|
||||||
Total partners’ equity
|
1,705,794
|
|
|
567,912
|
|
|
874,629
|
|
|
2,559,162
|
|
|
(4,095,880
|
)
|
|
1,611,617
|
|
||||||
Total liabilities and
partners’ equity
|
$
|
1,966,922
|
|
|
$
|
3,688,048
|
|
|
$
|
2,013,929
|
|
|
$
|
2,823,726
|
|
|
$
|
(5,462,080
|
)
|
|
$
|
5,030,545
|
|
|
NuStar
Energy
|
|
NuStar
Logistics
|
|
NuPOP
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues
|
$
|
—
|
|
|
$
|
128,895
|
|
|
$
|
50,577
|
|
|
$
|
256,363
|
|
|
$
|
(347
|
)
|
|
$
|
435,488
|
|
Costs and expenses
|
486
|
|
|
83,096
|
|
|
37,781
|
|
|
241,068
|
|
|
(347
|
)
|
|
362,084
|
|
||||||
Operating (loss) income
|
(486
|
)
|
|
45,799
|
|
|
12,796
|
|
|
15,295
|
|
|
—
|
|
|
73,404
|
|
||||||
Equity in earnings (loss) of subsidiaries
|
26,732
|
|
|
(7,177
|
)
|
|
22,746
|
|
|
34,141
|
|
|
(76,442
|
)
|
|
—
|
|
||||||
Interest income (expense), net
|
4
|
|
|
(46,390
|
)
|
|
(1,401
|
)
|
|
2,175
|
|
|
—
|
|
|
(45,612
|
)
|
||||||
Other income, net
|
—
|
|
|
62
|
|
|
3
|
|
|
23
|
|
|
—
|
|
|
88
|
|
||||||
Income (loss) before income tax
(benefit) expense
|
26,250
|
|
|
(7,706
|
)
|
|
34,144
|
|
|
51,634
|
|
|
(76,442
|
)
|
|
27,880
|
|
||||||
Income tax (benefit) expense
|
—
|
|
|
(365
|
)
|
|
1
|
|
|
1,994
|
|
|
—
|
|
|
1,630
|
|
||||||
Net income (loss)
|
$
|
26,250
|
|
|
$
|
(7,341
|
)
|
|
$
|
34,143
|
|
|
$
|
49,640
|
|
|
$
|
(76,442
|
)
|
|
$
|
26,250
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income (loss)
|
$
|
26,250
|
|
|
$
|
(13,592
|
)
|
|
$
|
34,143
|
|
|
$
|
57,022
|
|
|
$
|
(76,442
|
)
|
|
$
|
27,381
|
|
|
NuStar
Energy
|
|
NuStar
Logistics
|
|
NuPOP
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues
|
$
|
—
|
|
|
$
|
125,562
|
|
|
$
|
58,129
|
|
|
$
|
254,489
|
|
|
$
|
(376
|
)
|
|
$
|
437,804
|
|
Costs and expenses
|
434
|
|
|
73,505
|
|
|
35,986
|
|
|
237,038
|
|
|
(376
|
)
|
|
346,587
|
|
||||||
Operating (loss) income
|
(434
|
)
|
|
52,057
|
|
|
22,143
|
|
|
17,451
|
|
|
—
|
|
|
91,217
|
|
||||||
Equity in earnings (loss) of subsidiaries
|
52,929
|
|
|
(2,203
|
)
|
|
20,171
|
|
|
44,346
|
|
|
(115,243
|
)
|
|
—
|
|
||||||
Interest (expense) income, net
|
—
|
|
|
(41,155
|
)
|
|
2,026
|
|
|
549
|
|
|
4,351
|
|
|
(34,229
|
)
|
||||||
Other income (expense), net
|
22
|
|
|
21
|
|
|
7
|
|
|
(251
|
)
|
|
—
|
|
|
(201
|
)
|
||||||
Income before income tax
expense
|
52,517
|
|
|
8,720
|
|
|
44,347
|
|
|
62,095
|
|
|
(110,892
|
)
|
|
56,787
|
|
||||||
Income tax expense
|
—
|
|
|
347
|
|
|
3
|
|
|
3,920
|
|
|
—
|
|
|
4,270
|
|
||||||
Net income
|
$
|
52,517
|
|
|
$
|
8,373
|
|
|
$
|
44,344
|
|
|
$
|
58,175
|
|
|
$
|
(110,892
|
)
|
|
$
|
52,517
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income (loss)
|
$
|
52,517
|
|
|
$
|
(9,669
|
)
|
|
$
|
44,344
|
|
|
$
|
52,878
|
|
|
$
|
(110,892
|
)
|
|
$
|
29,178
|
|
|
NuStar
Energy
|
|
NuStar
Logistics
|
|
NuPOP
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues
|
$
|
—
|
|
|
$
|
252,524
|
|
|
$
|
102,818
|
|
|
$
|
568,210
|
|
|
$
|
(634
|
)
|
|
$
|
922,918
|
|
Costs and expenses
|
995
|
|
|
159,418
|
|
|
67,587
|
|
|
525,009
|
|
|
(634
|
)
|
|
752,375
|
|
||||||
Operating (loss) income
|
(995
|
)
|
|
93,106
|
|
|
35,231
|
|
|
43,201
|
|
|
—
|
|
|
170,543
|
|
||||||
Equity in earnings (loss) of
subsidiaries
|
85,177
|
|
|
(6,067
|
)
|
|
48,961
|
|
|
81,494
|
|
|
(209,565
|
)
|
|
—
|
|
||||||
Interest income (expense), net
|
8
|
|
|
(83,304
|
)
|
|
(2,705
|
)
|
|
3,975
|
|
|
—
|
|
|
(82,026
|
)
|
||||||
Other income, net
|
—
|
|
|
83
|
|
|
9
|
|
|
136
|
|
|
—
|
|
|
228
|
|
||||||
Income before income tax
(benefit) expense
|
84,190
|
|
|
3,818
|
|
|
81,496
|
|
|
128,806
|
|
|
(209,565
|
)
|
|
88,745
|
|
||||||
Income tax (benefit) expense
|
—
|
|
|
(34
|
)
|
|
2
|
|
|
4,587
|
|
|
—
|
|
|
4,555
|
|
||||||
Net income
|
$
|
84,190
|
|
|
$
|
3,852
|
|
|
$
|
81,494
|
|
|
$
|
124,219
|
|
|
$
|
(209,565
|
)
|
|
$
|
84,190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income (loss)
|
$
|
84,190
|
|
|
$
|
(561
|
)
|
|
$
|
81,494
|
|
|
$
|
133,526
|
|
|
$
|
(209,565
|
)
|
|
$
|
89,084
|
|
|
NuStar
Energy
|
|
NuStar
Logistics
|
|
NuPOP
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues
|
$
|
—
|
|
|
$
|
252,140
|
|
|
$
|
106,114
|
|
|
$
|
485,965
|
|
|
$
|
(712
|
)
|
|
$
|
843,507
|
|
Costs and expenses
|
952
|
|
|
142,396
|
|
|
67,001
|
|
|
448,088
|
|
|
(712
|
)
|
|
657,725
|
|
||||||
Operating (loss) income
|
(952
|
)
|
|
109,744
|
|
|
39,113
|
|
|
37,877
|
|
|
—
|
|
|
185,782
|
|
||||||
Equity in earnings (loss) of
subsidiaries
|
110,851
|
|
|
(5,318
|
)
|
|
45,454
|
|
|
88,089
|
|
|
(239,076
|
)
|
|
—
|
|
||||||
Interest (expense) income, net
|
—
|
|
|
(80,787
|
)
|
|
3,534
|
|
|
8,901
|
|
|
—
|
|
|
(68,352
|
)
|
||||||
Other income (expense), net
|
22
|
|
|
22
|
|
|
(10
|
)
|
|
(406
|
)
|
|
—
|
|
|
(372
|
)
|
||||||
Income before income tax expense
|
109,921
|
|
|
23,661
|
|
|
88,091
|
|
|
134,461
|
|
|
(239,076
|
)
|
|
117,058
|
|
||||||
Income tax expense
|
3
|
|
|
693
|
|
|
5
|
|
|
6,439
|
|
|
—
|
|
|
7,140
|
|
||||||
Net income
|
$
|
109,918
|
|
|
$
|
22,968
|
|
|
$
|
88,086
|
|
|
$
|
128,022
|
|
|
$
|
(239,076
|
)
|
|
$
|
109,918
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income (loss)
|
$
|
109,918
|
|
|
$
|
(22,830
|
)
|
|
$
|
88,086
|
|
|
$
|
135,703
|
|
|
$
|
(239,076
|
)
|
|
$
|
71,801
|
|
|
NuStar
Energy
|
|
NuStar
Logistics
|
|
NuPOP
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Net cash provided by operating
activities
|
$
|
225,566
|
|
|
$
|
85,203
|
|
|
$
|
45,790
|
|
|
$
|
192,692
|
|
|
$
|
(340,263
|
)
|
|
$
|
208,988
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital expenditures
|
—
|
|
|
(19,639
|
)
|
|
(5,588
|
)
|
|
(83,622
|
)
|
|
—
|
|
|
(108,849
|
)
|
||||||
Change in accounts payable
related to capital expenditures
|
—
|
|
|
(2,823
|
)
|
|
(35
|
)
|
|
9,709
|
|
|
—
|
|
|
6,851
|
|
||||||
Acquisitions
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,476,719
|
)
|
|
—
|
|
|
(1,476,719
|
)
|
||||||
Proceeds from sale or disposition
of assets
|
—
|
|
|
1,898
|
|
|
12
|
|
|
56
|
|
|
—
|
|
|
1,966
|
|
||||||
Investment in subsidiaries
|
(1,262,000
|
)
|
|
—
|
|
|
—
|
|
|
(126
|
)
|
|
1,262,126
|
|
|
—
|
|
||||||
Proceeds from Axeon term loan
|
—
|
|
|
110,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
110,000
|
|
||||||
Net cash (used in) provided by investing activities
|
(1,262,000
|
)
|
|
89,436
|
|
|
(5,611
|
)
|
|
(1,550,702
|
)
|
|
1,262,126
|
|
|
(1,466,751
|
)
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Debt borrowings
|
—
|
|
|
1,536,761
|
|
|
—
|
|
|
65,400
|
|
|
—
|
|
|
1,602,161
|
|
||||||
Debt repayments
|
—
|
|
|
(1,625,739
|
)
|
|
—
|
|
|
(70,500
|
)
|
|
—
|
|
|
(1,696,239
|
)
|
||||||
Note offering, net of
issuance costs
|
—
|
|
|
543,313
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
543,313
|
|
||||||
Issuance of preferred units,
net of issuance costs
|
371,802
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
371,802
|
|
||||||
Issuance of common units,
net of issuance costs
|
643,858
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
643,858
|
|
||||||
General partner contribution
|
13,597
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,597
|
|
||||||
Distributions to preferred unitholders
|
(10,696
|
)
|
|
(5,348
|
)
|
|
(5,348
|
)
|
|
(5,348
|
)
|
|
16,044
|
|
|
(10,696
|
)
|
||||||
Distributions to common unitholders and general partner
|
(216,139
|
)
|
|
(108,070
|
)
|
|
(108,069
|
)
|
|
(108,080
|
)
|
|
324,219
|
|
|
(216,139
|
)
|
||||||
Contributions from affiliates
|
—
|
|
|
1,262,000
|
|
|
—
|
|
|
126
|
|
|
(1,262,126
|
)
|
|
—
|
|
||||||
Net intercompany activity
|
236,622
|
|
|
(1,778,816
|
)
|
|
73,237
|
|
|
1,468,957
|
|
|
—
|
|
|
—
|
|
||||||
Other, net
|
(2,613
|
)
|
|
1,319
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
(1,294
|
)
|
||||||
Net cash provided by (used in) financing activities
|
1,036,431
|
|
|
(174,580
|
)
|
|
(40,179
|
)
|
|
1,350,554
|
|
|
(921,863
|
)
|
|
1,250,363
|
|
||||||
Effect of foreign exchange rate changes on cash
|
—
|
|
|
—
|
|
|
—
|
|
|
649
|
|
|
—
|
|
|
649
|
|
||||||
Net (decrease) increase in cash
and cash equivalents
|
(3
|
)
|
|
59
|
|
|
—
|
|
|
(6,807
|
)
|
|
—
|
|
|
(6,751
|
)
|
||||||
Cash and cash equivalents as of the
beginning of the period
|
870
|
|
|
5
|
|
|
—
|
|
|
35,067
|
|
|
—
|
|
|
35,942
|
|
||||||
Cash and cash equivalents as of the
end of the period
|
$
|
867
|
|
|
$
|
64
|
|
|
$
|
—
|
|
|
$
|
28,260
|
|
|
$
|
—
|
|
|
$
|
29,191
|
|
|
NuStar
Energy
|
|
NuStar
Logistics
|
|
NuPOP
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Net cash provided by operating
activities
|
$
|
194,793
|
|
|
$
|
58,160
|
|
|
$
|
79,728
|
|
|
$
|
201,026
|
|
|
$
|
(318,674
|
)
|
|
$
|
215,033
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital expenditures
|
—
|
|
|
(47,672
|
)
|
|
(19,474
|
)
|
|
(28,215
|
)
|
|
—
|
|
|
(95,361
|
)
|
||||||
Change in accounts payable
related to capital expenditures
|
—
|
|
|
(12,230
|
)
|
|
3,357
|
|
|
(3,801
|
)
|
|
—
|
|
|
(12,674
|
)
|
||||||
Net cash used in investing activities
|
—
|
|
|
(59,902
|
)
|
|
(16,117
|
)
|
|
(32,016
|
)
|
|
—
|
|
|
(108,035
|
)
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Debt borrowings
|
—
|
|
|
610,504
|
|
|
—
|
|
|
17,400
|
|
|
—
|
|
|
627,904
|
|
||||||
Debt repayments
|
—
|
|
|
(532,992
|
)
|
|
—
|
|
|
(14,200
|
)
|
|
—
|
|
|
(547,192
|
)
|
||||||
Distributions to common unitholders and general partner
|
(196,102
|
)
|
|
(98,051
|
)
|
|
(98,051
|
)
|
|
(98,062
|
)
|
|
294,164
|
|
|
(196,102
|
)
|
||||||
Distributions to affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
(24,510
|
)
|
|
24,510
|
|
|
—
|
|
||||||
Net intercompany activity
|
1,755
|
|
|
24,561
|
|
|
34,440
|
|
|
(60,756
|
)
|
|
—
|
|
|
—
|
|
||||||
Other, net
|
(668
|
)
|
|
(2,281
|
)
|
|
—
|
|
|
(8,891
|
)
|
|
—
|
|
|
(11,840
|
)
|
||||||
Net cash (used in) provided by
financing activities
|
(195,015
|
)
|
|
1,741
|
|
|
(63,611
|
)
|
|
(189,019
|
)
|
|
318,674
|
|
|
(127,230
|
)
|
||||||
Effect of foreign exchange rate
changes on cash
|
—
|
|
|
—
|
|
|
—
|
|
|
4,389
|
|
|
—
|
|
|
4,389
|
|
||||||
Net decrease in cash and
cash equivalents
|
(222
|
)
|
|
(1
|
)
|
|
—
|
|
|
(15,620
|
)
|
|
—
|
|
|
(15,843
|
)
|
||||||
Cash and cash equivalents as of the
beginning of the period
|
885
|
|
|
4
|
|
|
—
|
|
|
117,973
|
|
|
—
|
|
|
118,862
|
|
||||||
Cash and cash equivalents as of the
end of the period
|
$
|
663
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
102,353
|
|
|
$
|
—
|
|
|
$
|
103,019
|
|
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;
|
•
|
economic factors, such as commodity price volatility that impact our fuels marketing segment and the drilling activity by our crude oil production customers; and
|
•
|
factors that impact the operations served by our pipeline and storage assets, such as utilization rates and maintenance turnaround schedules of our refining company customers and drilling activity by our crude oil production customers.
|
|
Three Months Ended June 30,
|
|
Change
|
||||||||
|
2017
|
|
2016
|
|
|||||||
Statement of Income Data:
|
|
|
|
|
|
||||||
Revenues:
|
|
|
|
|
|
||||||
Service revenues
|
$
|
283,700
|
|
|
$
|
270,403
|
|
|
$
|
13,297
|
|
Product sales
|
151,788
|
|
|
167,401
|
|
|
(15,613
|
)
|
|||
Total revenues
|
435,488
|
|
|
437,804
|
|
|
(2,316
|
)
|
|||
|
|
|
|
|
|
||||||
Costs and expenses:
|
|
|
|
|
|
||||||
Cost of product sales
|
144,479
|
|
|
157,617
|
|
|
(13,138
|
)
|
|||
Operating expenses
|
116,400
|
|
|
112,662
|
|
|
3,738
|
|
|||
General and administrative expenses
|
33,604
|
|
|
22,657
|
|
|
10,947
|
|
|||
Depreciation and amortization expense
|
67,601
|
|
|
53,651
|
|
|
13,950
|
|
|||
Total costs and expenses
|
362,084
|
|
|
346,587
|
|
|
15,497
|
|
|||
|
|
|
|
|
|
||||||
Operating income
|
73,404
|
|
|
91,217
|
|
|
(17,813
|
)
|
|||
Interest expense, net
|
(45,612
|
)
|
|
(34,229
|
)
|
|
(11,383
|
)
|
|||
Other income (expense), net
|
88
|
|
|
(201
|
)
|
|
289
|
|
|||
Income before income tax expense
|
27,880
|
|
|
56,787
|
|
|
(28,907
|
)
|
|||
Income tax expense
|
1,630
|
|
|
4,270
|
|
|
(2,640
|
)
|
|||
Net income
|
$
|
26,250
|
|
|
$
|
52,517
|
|
|
$
|
(26,267
|
)
|
Basic and diluted net income per common unit
|
$
|
0.05
|
|
|
$
|
0.52
|
|
|
$
|
(0.47
|
)
|
Basic weighted-average common units outstanding
|
90,345,469
|
|
|
77,886,219
|
|
|
12,459,250
|
|
|
Three Months Ended June 30,
|
|
Change
|
||||||||
|
2017
|
|
2016
|
|
|||||||
Pipeline:
|
|
|
|
|
|
||||||
Refined products pipelines throughput (barrels/day)
|
531,529
|
|
|
538,996
|
|
|
(7,467
|
)
|
|||
Crude oil pipelines throughput (barrels/day)
|
558,182
|
|
|
399,372
|
|
|
158,810
|
|
|||
Total throughput (barrels/day)
|
1,089,711
|
|
|
938,368
|
|
|
151,343
|
|
|||
Throughput revenues
|
$
|
126,740
|
|
|
$
|
121,575
|
|
|
$
|
5,165
|
|
Operating expenses
|
40,197
|
|
|
36,159
|
|
|
4,038
|
|
|||
Depreciation and amortization expense
|
33,675
|
|
|
21,864
|
|
|
11,811
|
|
|||
Segment operating income
|
$
|
52,868
|
|
|
$
|
63,552
|
|
|
$
|
(10,684
|
)
|
Storage:
|
|
|
|
|
|
||||||
Throughput (barrels/day)
|
337,518
|
|
|
727,857
|
|
|
(390,339
|
)
|
|||
Throughput terminal revenues
|
$
|
22,122
|
|
|
$
|
28,668
|
|
|
$
|
(6,546
|
)
|
Storage terminal revenues
|
136,437
|
|
|
123,206
|
|
|
13,231
|
|
|||
Total revenues
|
158,559
|
|
|
151,874
|
|
|
6,685
|
|
|||
Operating expenses
|
70,783
|
|
|
71,158
|
|
|
(375
|
)
|
|||
Depreciation and amortization expense
|
31,727
|
|
|
29,653
|
|
|
2,074
|
|
|||
Segment operating income
|
$
|
56,049
|
|
|
$
|
51,063
|
|
|
$
|
4,986
|
|
Fuels Marketing:
|
|
|
|
|
|
||||||
Product sales and other revenue
|
$
|
153,918
|
|
|
$
|
169,862
|
|
|
$
|
(15,944
|
)
|
Cost of product sales
|
147,013
|
|
|
160,557
|
|
|
(13,544
|
)
|
|||
Gross margin
|
6,905
|
|
|
9,305
|
|
|
(2,400
|
)
|
|||
Operating expenses
|
6,616
|
|
|
7,913
|
|
|
(1,297
|
)
|
|||
Segment operating income
|
$
|
289
|
|
|
$
|
1,392
|
|
|
$
|
(1,103
|
)
|
Consolidation and Intersegment Eliminations:
|
|
|
|
|
|
||||||
Revenues
|
$
|
(3,729
|
)
|
|
$
|
(5,507
|
)
|
|
$
|
1,778
|
|
Cost of product sales
|
(2,534
|
)
|
|
(2,940
|
)
|
|
406
|
|
|||
Operating expenses
|
(1,196
|
)
|
|
(2,568
|
)
|
|
1,372
|
|
|||
Total
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
—
|
|
Consolidated Information:
|
|
|
|
|
|
||||||
Revenues
|
$
|
435,488
|
|
|
$
|
437,804
|
|
|
$
|
(2,316
|
)
|
Cost of product sales
|
144,479
|
|
|
157,617
|
|
|
(13,138
|
)
|
|||
Operating expenses
|
116,400
|
|
|
112,662
|
|
|
3,738
|
|
|||
Depreciation and amortization expense
|
65,402
|
|
|
51,517
|
|
|
13,885
|
|
|||
Segment operating income
|
109,207
|
|
|
116,008
|
|
|
(6,801
|
)
|
|||
General and administrative expenses
|
33,604
|
|
|
22,657
|
|
|
10,947
|
|
|||
Other depreciation and amortization expense
|
2,199
|
|
|
2,134
|
|
|
65
|
|
|||
Consolidated operating income
|
$
|
73,404
|
|
|
$
|
91,217
|
|
|
$
|
(17,813
|
)
|
•
|
an increase in revenues of $9.5 million and an increase in throughputs of 169,196 barrels per day resulting from our Permian Crude System acquired in the Navigator Acquisition;
|
•
|
an increase in revenues of $3.4 million and an increase in throughputs of 12,749 barrels per day on our East Pipeline due to the completion of various storage projects along the pipeline;
|
•
|
an increase in revenues of $1.7 million and an increase in throughputs of 29,610 barrels per day due to increased production at the refinery served by our McKee System pipelines; and
|
•
|
an increase in revenues of $1.4 million and an increase in throughputs of 24,619 barrels per day on our Ardmore System due to increased production at the refinery served by this system, as well as increased long-haul deliveries in 2017 due to the completion of a pipeline project in the third quarter of 2016.
|
•
|
an increase in revenues of $2.8 million at our North East Terminals, mainly resulting from increased throughput and related handling fees, new customer contracts and higher reimbursable revenues;
|
•
|
an increase in revenues of $2.3 million at our St. Eustatius terminal, mainly due to new customer contracts and rate escalations, partially offset by decreased lower throughput and related handling fees; and
|
•
|
an increase in revenues of $2.2 million at our West Coast Terminals primarily due an increase in customer base and rate escalations.
|
|
Six Months Ended June 30,
|
|
Change
|
||||||||
|
2017
|
|
2016
|
|
|||||||
Statement of Income Data:
|
|
|
|
|
|
||||||
Revenues:
|
|
|
|
|
|
||||||
Service revenues
|
$
|
550,162
|
|
|
$
|
536,969
|
|
|
$
|
13,193
|
|
Product sales
|
372,756
|
|
|
306,538
|
|
|
66,218
|
|
|||
Total revenues
|
922,918
|
|
|
843,507
|
|
|
79,411
|
|
|||
|
|
|
|
|
|
||||||
Costs and expenses:
|
|
|
|
|
|
||||||
Cost of product sales
|
352,285
|
|
|
286,607
|
|
|
65,678
|
|
|||
Operating expenses
|
217,426
|
|
|
217,883
|
|
|
(457
|
)
|
|||
General and administrative expenses
|
58,199
|
|
|
46,442
|
|
|
11,757
|
|
|||
Depreciation and amortization expense
|
124,465
|
|
|
106,793
|
|
|
17,672
|
|
|||
Total costs and expenses
|
752,375
|
|
|
657,725
|
|
|
94,650
|
|
|||
|
|
|
|
|
|
||||||
Operating income
|
170,543
|
|
|
185,782
|
|
|
(15,239
|
)
|
|||
Interest expense, net
|
(82,026
|
)
|
|
(68,352
|
)
|
|
(13,674
|
)
|
|||
Other income (expense), net
|
228
|
|
|
(372
|
)
|
|
600
|
|
|||
Income before income tax expense
|
88,745
|
|
|
117,058
|
|
|
(28,313
|
)
|
|||
Income tax expense
|
4,555
|
|
|
7,140
|
|
|
(2,585
|
)
|
|||
Net income
|
$
|
84,190
|
|
|
$
|
109,918
|
|
|
$
|
(25,728
|
)
|
Basic and diluted net income per common unit
|
$
|
0.51
|
|
|
$
|
1.09
|
|
|
$
|
(0.58
|
)
|
Basic weighted-average common units outstanding
|
84,526,506
|
|
|
77,886,148
|
|
|
6,640,358
|
|
|
Six Months Ended June 30,
|
|
Change
|
||||||||
|
2017
|
|
2016
|
|
|||||||
Pipeline:
|
|
|
|
|
|
||||||
Refined products pipelines throughput (barrels/day)
|
522,820
|
|
|
530,134
|
|
|
(7,314
|
)
|
|||
Crude oil pipelines throughput (barrels/day)
|
483,909
|
|
|
405,241
|
|
|
78,668
|
|
|||
Total throughput (barrels/day)
|
1,006,729
|
|
|
935,375
|
|
|
71,354
|
|
|||
Throughput revenues
|
$
|
247,980
|
|
|
$
|
240,448
|
|
|
$
|
7,532
|
|
Operating expenses
|
73,271
|
|
|
69,163
|
|
|
4,108
|
|
|||
Depreciation and amortization expense
|
56,813
|
|
|
43,468
|
|
|
13,345
|
|
|||
Segment operating income
|
$
|
117,896
|
|
|
$
|
127,817
|
|
|
$
|
(9,921
|
)
|
Storage:
|
|
|
|
|
|
||||||
Throughput (barrels/day)
|
326,327
|
|
|
778,092
|
|
|
(451,765
|
)
|
|||
Throughput terminal revenues
|
$
|
42,812
|
|
|
$
|
58,068
|
|
|
$
|
(15,256
|
)
|
Storage terminal revenues
|
263,178
|
|
|
246,205
|
|
|
16,973
|
|
|||
Total revenues
|
305,990
|
|
|
304,273
|
|
|
1,717
|
|
|||
Operating expenses
|
132,922
|
|
|
137,161
|
|
|
(4,239
|
)
|
|||
Depreciation and amortization expense
|
63,260
|
|
|
59,036
|
|
|
4,224
|
|
|||
Segment operating income
|
$
|
109,808
|
|
|
$
|
108,076
|
|
|
$
|
1,732
|
|
Fuels Marketing:
|
|
|
|
|
|
||||||
Product sales and other revenue
|
$
|
376,620
|
|
|
$
|
310,308
|
|
|
$
|
66,312
|
|
Cost of product sales
|
357,612
|
|
|
293,138
|
|
|
64,474
|
|
|||
Gross margin
|
19,008
|
|
|
17,170
|
|
|
1,838
|
|
|||
Operating expenses
|
13,579
|
|
|
16,551
|
|
|
(2,972
|
)
|
|||
Segment operating income
|
$
|
5,429
|
|
|
$
|
619
|
|
|
$
|
4,810
|
|
Consolidation and Intersegment Eliminations:
|
|
|
|
|
|
||||||
Revenues
|
$
|
(7,672
|
)
|
|
$
|
(11,522
|
)
|
|
$
|
3,850
|
|
Cost of product sales
|
(5,327
|
)
|
|
(6,531
|
)
|
|
1,204
|
|
|||
Operating expenses
|
(2,346
|
)
|
|
(4,992
|
)
|
|
2,646
|
|
|||
Total
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
—
|
|
Consolidated Information:
|
|
|
|
|
|
||||||
Revenues
|
$
|
922,918
|
|
|
$
|
843,507
|
|
|
$
|
79,411
|
|
Cost of product sales
|
352,285
|
|
|
286,607
|
|
|
65,678
|
|
|||
Operating expenses
|
217,426
|
|
|
217,883
|
|
|
(457
|
)
|
|||
Depreciation and amortization expense
|
120,073
|
|
|
102,504
|
|
|
17,569
|
|
|||
Segment operating income
|
233,134
|
|
|
236,513
|
|
|
(3,379
|
)
|
|||
General and administrative expenses
|
58,199
|
|
|
46,442
|
|
|
11,757
|
|
|||
Other depreciation and amortization expense
|
4,392
|
|
|
4,289
|
|
|
103
|
|
|||
Consolidated operating income
|
$
|
170,543
|
|
|
$
|
185,782
|
|
|
$
|
(15,239
|
)
|
•
|
an increase in revenues of $9.5 million and an increase in throughputs of 85,066 barrels per day from our recently acquired Permian Crude System;
|
•
|
an increase in revenues of $4.8 million and an increase in throughputs of 5,218 barrels per day on our Ammonia Pipeline mainly due to an early planting season resulting from warmer weather;
|
•
|
an increase in revenues of $4.6 million and an increase in throughputs of 3,201 barrels per day on our East Pipeline due to the completion of various storage projects along the pipeline; and
|
•
|
an increase in revenues of $2.2 million and an increase in throughputs of 17,838 barrels per day due to increased production at the refinery served by our McKee System pipelines.
|
•
|
a decrease of $3.1 million in reimbursable expenses, mainly at our Texas City terminals, consistent with the decrease in reimbursable revenues at Texas City;
|
•
|
a decrease of $3.0 million in maintenance expenses primarily at terminals in our northeast region and at our Point Tupper terminal; and
|
•
|
a decrease of $1.9 million in compensation expenses resulting from changes in our revenue agreements for our crude refinery storage tanks and lower employee benefit costs.
|
|
Six Months Ended June 30,
|
||||||
|
2017
|
|
2016
|
||||
|
(Thousands of Dollars)
|
||||||
Net cash provided by (used in):
|
|
|
|
||||
Operating activities
|
$
|
208,988
|
|
|
$
|
215,033
|
|
Investing activities
|
(1,466,751
|
)
|
|
(108,035
|
)
|
||
Financing activities
|
1,250,363
|
|
|
(127,230
|
)
|
||
Effect of foreign exchange rate changes on cash
|
649
|
|
|
4,389
|
|
||
Net decrease in cash and cash equivalents
|
$
|
(6,751
|
)
|
|
$
|
(15,843
|
)
|
•
|
$365.4 million
in revenue bonds pursuant to the Gulf Opportunity Zone Act of 2005 (the GoZone Bonds), with
$42.4 million
remaining in the trust as of
June 30, 2017
, supported by $370.2 million in letters of credit;
|
•
|
a $125.0 million receivables financing agreement between NuStar Energy, NuStar Finance LLC and third-party lenders (the Receivables Financing Agreement), with the amount available for borrowing based on the availability of eligible receivables and other customary factors and conditions; and
|
•
|
two short-term line of credit agreements with an uncommitted borrowing capacity of up to $60.0 million, with
$45.0 million
of borrowings outstanding as of
June 30, 2017
.
|
•
|
strategic capital expenditures, such as those to expand or upgrade the operating capacity, increase efficiency or increase the earnings potential of existing assets, whether through construction or acquisition, as well as certain capital expenditures related to support functions; and
|
•
|
reliability capital expenditures, such as those required to maintain the existing operating capacity of existing assets or extend their useful lives, as well as those required to maintain equipment reliability and safety.
|
|
Strategic Capital
Expenditures
|
|
Reliability Capital
Expenditures
|
|
Total
|
||||||
|
(Thousands of Dollars)
|
||||||||||
For the six months ended June 30:
|
|
|
|
|
|
||||||
2017
|
$
|
93,447
|
|
|
$
|
15,402
|
|
|
$
|
108,849
|
|
2016
|
$
|
78,039
|
|
|
$
|
17,322
|
|
|
$
|
95,361
|
|
|
|
|
|
|
|
||||||
Expected for the year ended December 31, 2017 (a)
|
$ 380,000 - 420,000
|
|
|
$ 35,000 - 55,000
|
|
|
$ 415,000 - 475,000
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(Thousands of Dollars, Except Per Unit Data)
|
||||||||||||||
General partner interest
|
$
|
2,302
|
|
|
$
|
1,961
|
|
|
$
|
4,645
|
|
|
$
|
3,922
|
|
General partner incentive distribution
|
10,912
|
|
|
10,805
|
|
|
23,824
|
|
|
21,610
|
|
||||
Total general partner distribution
|
13,214
|
|
|
12,766
|
|
|
28,469
|
|
|
25,532
|
|
||||
Common limited partners’ distribution
|
101,869
|
|
|
85,285
|
|
|
203,782
|
|
|
170,570
|
|
||||
Total cash distributions
|
$
|
115,083
|
|
|
$
|
98,051
|
|
|
$
|
232,251
|
|
|
$
|
196,102
|
|
|
|
|
|
|
|
|
|
||||||||
Cash distributions per unit applicable to common limited partners
|
$
|
1.095
|
|
|
$
|
1.095
|
|
|
$
|
2.190
|
|
|
$
|
2.190
|
|
Quarter Ended
|
|
Cash
Distributions
Per Unit
|
|
Total Cash
Distributions
|
|
Record Date
|
|
Payment Date
|
||||
|
|
|
|
(Thousands of Dollars)
|
|
|
|
|
||||
June 30, 2017 (a)
|
|
$
|
1.095
|
|
|
$
|
115,083
|
|
|
August 7, 2017
|
|
August 11, 2017
|
March 31, 2017
|
|
$
|
1.095
|
|
|
$
|
117,168
|
|
|
May 8, 2017
|
|
May 12, 2017
|
December 31, 2016
|
|
$
|
1.095
|
|
|
$
|
98,971
|
|
|
February 8, 2017
|
|
February 13, 2017
|
(a)
|
The distribution was announced on
July 28, 2017
.
|
Period
|
|
Cash
Distributions
Per Unit
|
|
Total Cash
Distributions
|
|
Record Date
|
|
Payment Date
|
||||
|
|
|
|
(Thousands of Dollars)
|
|
|
|
|
||||
Series A Preferred Units:
|
|
|
|
|
|
|
|
|
||||
June 15, 2017 - September 14, 2017 (a)
|
|
$
|
0.53125
|
|
|
$
|
4,813
|
|
|
September 1, 2017
|
|
September 15, 2017
|
March 15, 2017 - June 14, 2017
|
|
$
|
0.53125
|
|
|
$
|
4,813
|
|
|
June 1, 2017
|
|
June 15, 2017
|
November 25, 2016 - March 14, 2017
|
|
$
|
0.64930556
|
|
|
$
|
5,883
|
|
|
March 1, 2017
|
|
March 15, 2017
|
|
|
|
|
|
|
|
|
|
||||
Series B Preferred Units:
|
|
|
|
|
|
|
|
|
||||
April 28, 2017 - September 14, 2017 (a)
|
|
$
|
0.725434028
|
|
|
$
|
11,172
|
|
|
September 1, 2017
|
|
September 15, 2017
|
(a)
|
The distribution was announced on
July 28, 2017
.
|
•
|
Revolving credit agreement due October 29, 2019, with
$764.8 million
of borrowings outstanding as of
June 30, 2017
;
|
•
|
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;
5.625%
senior notes due
April 28, 2027
with a face value of $550.0 million; and
7.625% subordinated notes due January 15, 2043 with a face value of $402.5 million.
|
•
|
$365.4 million in GoZone Bonds due from 2038 to 2041;
|
•
|
Line of credit agreements with
$45.0 million
of borrowings outstanding as of
June 30, 2017
; and
|
•
|
Receivables Financing Agreement due June 15, 2018, with
$53.3 million
of borrowings outstanding as of
June 30, 2017
.
|
|
Standard & Poor’s
Ratings Services
|
|
Moody’s Investor
Service Inc.
|
|
Fitch, Inc.
|
|
|
|
|
|
|
Ratings
|
BB+
|
|
Ba1
|
|
BB
|
Outlook
|
Stable
|
|
Negative
|
|
Stable
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
|
June 30, 2017
|
||||||||||||||||||||||||||||||
|
Expected Maturity Dates
|
|
|
|
|
||||||||||||||||||||||||||
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
2021
|
|
There-
after
|
|
Total
|
|
Fair
Value
|
||||||||||||||||
|
(Thousands of Dollars, Except Interest Rates)
|
||||||||||||||||||||||||||||||
Long-term Debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Fixed-rate
|
$
|
—
|
|
|
$
|
350,000
|
|
|
$
|
—
|
|
|
$
|
450,000
|
|
|
$
|
300,000
|
|
|
$
|
1,202,500
|
|
|
$
|
2,302,500
|
|
|
$
|
2,407,522
|
|
Weighted-average
interest rate
|
—
|
|
|
8.2
|
%
|
|
—
|
|
|
4.8
|
%
|
|
6.8
|
%
|
|
6.1
|
%
|
|
6.2
|
%
|
|
|
|||||||||
Variable-rate
|
$
|
—
|
|
|
$
|
53,300
|
|
|
$
|
764,821
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
365,440
|
|
|
$
|
1,183,561
|
|
|
$
|
1,184,186
|
|
Weighted-average
interest rate
|
—
|
|
|
2.1
|
%
|
|
2.8
|
%
|
|
—
|
|
|
—
|
|
|
0.9
|
%
|
|
2.2
|
%
|
|
|
|
December 31, 2016
|
||||||||||||||||||||||||||||||
|
Expected Maturity Dates
|
|
|
|
|
||||||||||||||||||||||||||
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
2021
|
|
There-
after
|
|
Total
|
|
Fair
Value
|
||||||||||||||||
|
(Thousands of Dollars, Except Interest Rates)
|
||||||||||||||||||||||||||||||
Long-term Debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Fixed-rate
|
$
|
—
|
|
|
$
|
350,000
|
|
|
$
|
—
|
|
|
$
|
450,000
|
|
|
$
|
300,000
|
|
|
$
|
652,500
|
|
|
$
|
1,752,500
|
|
|
$
|
1,821,261
|
|
Weighted-average
interest rate
|
—
|
|
|
8.2
|
%
|
|
—
|
|
|
4.8
|
%
|
|
6.8
|
%
|
|
6.5
|
%
|
|
6.4
|
%
|
|
|
|||||||||
Variable-rate
|
$
|
—
|
|
|
$
|
58,400
|
|
|
$
|
838,992
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
365,440
|
|
|
$
|
1,262,832
|
|
|
$
|
1,263,501
|
|
Weighted-average
interest rate
|
—
|
|
|
1.6
|
%
|
|
2.5
|
%
|
|
—
|
|
|
—
|
|
|
0.7
|
%
|
|
1.9
|
%
|
|
|
Notional Amount
|
|
|
|
Weighted-Average Fixed Rate
|
|
Fair Value
|
||||||||||||||||
June 30, 2017
|
|
December 31, 2016
|
|
Period of Hedge
|
|
June 30, 2017
|
|
December 31, 2016
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||
(Thousands of Dollars)
|
|
|
|
|
|
|
|
(Thousands of Dollars)
|
||||||||||||||
$
|
350,000
|
|
|
$
|
350,000
|
|
|
04/2018 - 04/2028
|
|
2.6
|
%
|
|
2.6
|
%
|
|
$
|
(6,392
|
)
|
|
$
|
(1,333
|
)
|
250,000
|
|
|
250,000
|
|
|
09/2020 - 09/2030
|
|
2.8
|
%
|
|
2.8
|
%
|
|
(2,867
|
)
|
|
15
|
|
||||
$
|
600,000
|
|
|
$
|
600,000
|
|
|
|
|
2.7
|
%
|
|
2.7
|
%
|
|
$
|
(9,259
|
)
|
|
$
|
(1,318
|
)
|
|
June 30, 2017
|
|||||||||||||
|
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:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
7
|
|
|
$
|
61.64
|
|
|
N/A
|
|
|
$
|
4
|
|
|
Futures – short:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
65
|
|
|
N/A
|
|
|
$
|
59.91
|
|
|
$
|
(154
|
)
|
|
Swaps – long:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
60
|
|
|
$
|
41.10
|
|
|
N/A
|
|
|
$
|
158
|
|
|
Swaps – short:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
101
|
|
|
N/A
|
|
|
$
|
43.39
|
|
|
$
|
(34
|
)
|
|
|
|
|
|
|
|
|
|
|||||||
Economic Hedges and Other Derivatives:
|
|
|
|
|
|
|
|
|||||||
Futures – short:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
5
|
|
|
N/A
|
|
|
$
|
59.79
|
|
|
$
|
(13
|
)
|
|
Swaps – long:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
337
|
|
|
$
|
42.52
|
|
|
N/A
|
|
|
$
|
486
|
|
|
Swaps – short:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
339
|
|
|
N/A
|
|
|
$
|
42.17
|
|
|
$
|
(608
|
)
|
|
|
|
|
|
|
|
|
|
|||||||
Total fair value of open positions exposed to
commodity price risk
|
|
|
|
|
|
|
$
|
(161
|
)
|
|
December 31, 2016
|
|||||||||||||
|
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)
|
47
|
|
|
$
|
55.53
|
|
|
N/A
|
|
|
$
|
2
|
|
|
Futures – short:
|
|
|
|
|
|
|
|
|||||||
(crude oil and refined products)
|
107
|
|
|
N/A
|
|
|
$
|
58.79
|
|
|
$
|
(243
|
)
|
|
Swaps – long:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
84
|
|
|
$
|
45.99
|
|
|
N/A
|
|
|
$
|
141
|
|
|
Swaps – short:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
573
|
|
|
N/A
|
|
|
$
|
41.87
|
|
|
$
|
(3,322
|
)
|
|
|
|
|
|
|
|
|
|
|||||||
Economic Hedges and Other Derivatives:
|
|
|
|
|
|
|
|
|||||||
Futures – long:
|
|
|
|
|
|
|
|
|||||||
(crude oil and refined products)
|
18
|
|
|
$
|
72.06
|
|
|
N/A
|
|
|
$
|
10
|
|
|
Futures – short:
|
|
|
|
|
|
|
|
|||||||
(crude oil and refined products)
|
9
|
|
|
N/A
|
|
|
$
|
71.88
|
|
|
$
|
(7
|
)
|
|
Swaps – long:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
869
|
|
|
$
|
42.20
|
|
|
N/A
|
|
|
$
|
4,737
|
|
|
Swaps – short:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
874
|
|
|
N/A
|
|
|
$
|
41.40
|
|
|
$
|
(5,459
|
)
|
|
Forward purchase contracts:
|
|
|
|
|
|
|
|
|||||||
(crude oil)
|
310
|
|
|
$
|
52.78
|
|
|
N/A
|
|
|
$
|
499
|
|
|
Forward sales contracts:
|
|
|
|
|
|
|
|
|||||||
(crude oil)
|
310
|
|
|
N/A
|
|
|
$
|
52.76
|
|
|
$
|
(507
|
)
|
|
|
|
|
|
|
|
|
|
|||||||
Total fair value of open positions exposed to
commodity price risk
|
|
|
|
|
|
|
$
|
(4,149
|
)
|
Item 4.
|
Controls and Procedures
|
(a)
|
Evaluation of disclosure controls and procedures.
|
(b)
|
Changes in internal control over financial reporting.
|
Item 6.
|
Exhibits
|
By:
|
|
/s/ Bradley C. Barron
|
|
|
Bradley C. Barron
|
|
|
President and Chief Executive Officer
|
|
|
August 8, 2017
|
|
|
|
By:
|
|
/s/ Thomas R. Shoaf
|
|
|
Thomas R. Shoaf
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
August 8, 2017
|
|
|
|
By:
|
|
/s/ Jorge A. del Alamo
|
|
|
Jorge A. del Alamo
|
|
|
Senior Vice President and Controller
|
|
|
August 8, 2017
|
|
|
|
1251 Avenue of the Americas
New York, NY 10020
|
Exhibit 10.02
|
By:
|
/s/ Anastasiya Haurylenia
|
Name:
|
Anastasiya Haurylenia
|
Title:
|
Vice President, Portfolio Management
|
Subsidiary
|
Jurisdiction of Formation
|
Restricted/
Unrestricted/Material
|
Ownership Percentage
|
Bicen Development Corporation N.V.
|
Netherlands
|
Restricted
|
100%
|
Cooperatie NuStar Holdings U.A.
|
Netherlands
|
Restricted
|
100%
|
LegacyStar Services, LLC
|
Delaware
|
Restricted
|
100%
|
NS Security Services, LLC
|
Delaware
|
Restricted
|
100%
|
NuStar Burgos, LLC
|
Delaware
|
Restricted
|
100%
|
NuStar Caribe Terminals, Inc.
|
Delaware
|
Restricted
|
100%
|
NuStar Eastham Limited
|
England
|
Restricted
|
100%
|
NuStar Energy Services, Inc.
|
Delaware
|
Restricted
|
100%
|
NuStar Finance LLC
|
Delaware
|
Restricted
|
100%
|
NuStar GP, Inc.
|
Delaware
|
Restricted
|
100%
|
NuStar Grangemouth Limited
|
England
|
Restricted
|
100%
|
NuStar Holdings B.V.
|
Netherlands
|
Restricted
|
100%
|
NuStar Internacional, S de R.L. de C.V.
|
Mexico
|
Restricted
|
100%
|
NuStar Logistics, L.P.
|
Delaware
|
Restricted - Material
|
100%
|
NuStar Permian CC Storage, LLC
|
Delaware
|
Restricted
|
100%
|
NuStar Permian Crude Logistics, LLC
|
Delaware
|
Restricted
|
100%
|
NuStar Permian Crude Storage, LLC
|
Delaware
|
Restricted
|
100%
|
NuStar Permian Field Services, LLC
|
Delaware
|
Restricted
|
100%
|
NuStar Permian Holdings, LLC
|
Delaware
|
Restricted
|
100%
|
NuStar Permian Operating, LLC
|
Delaware
|
Restricted
|
100%
|
NuStar Permian Services, LLC
|
Delaware
|
Restricted
|
100%
|
NuStar Permian Transportation and Storage, LLC
|
Delaware
|
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%
|
NuStar Refining, LLC
|
Delaware
|
Restricted
|
100%
|
NuStar Services Company LLC
|
Delaware
|
Restricted
|
100%
|
NuStar Supply & Trading LLC
|
Delaware
|
Restricted
|
100%
|
NuStar Terminals Antilles N.V.
|
Curacao
|
Restricted
|
100%
|
NuStar Terminals B.V.
|
Netherlands
|
Restricted
|
100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsidiary
|
Jurisdiction of Formation
|
Restricted/
Unrestricted/Material
|
Ownership Percentage
|
NuStar Terminals Canada Co.
|
Canada
|
Restricted
|
100%
|
NuStar Terminals Canada Holdings Co.
|
Canada
|
Restricted
|
100%
|
NuStar Terminals Canada Partnership
|
Canada
|
Restricted
|
100%
|
NuStar Terminals Corporation N.V.
|
Curacao
|
Restricted
|
100%
|
NuStar Terminals Delaware, Inc.
|
Delaware
|
Restricted
|
100%
|
NuStar Terminals International N.V.
|
Curacao
|
Restricted
|
100%
|
NuStar Terminals Limited
|
England
|
Restricted
|
100%
|
NuStar Terminals Marine Services N.V.
|
Netherlands
|
Restricted
|
100%
|
NuStar Terminals New Jersey, Inc.
|
Delaware
|
Restricted
|
100%
|
NuStar Terminals N.V.
|
Netherlands
|
Restricted - Material
|
100%
|
NuStar Terminals Operations Partnership L.P.
|
Delaware
|
Restricted
|
100%
|
NuStar Terminals Partners TX L.P.
|
Delaware
|
Restricted
|
100%
|
NuStar Terminals Services, Inc.
|
Delaware
|
Restricted
|
100%
|
NuStar Terminals Texas, Inc.
|
Delaware
|
Restricted
|
100%
|
NuStar Texas Holdings, Inc.
|
Delaware
|
Restricted
|
100%
|
Petroburgos, S. de R.L. de C.V.
|
Mexico
|
Restricted
|
100%
|
Point Tupper Marine Services Co.
|
Canada
|
Restricted
|
100%
|
Saba Company N.V.
|
Netherlands
|
Restricted
|
100%
|
Seven Seas Steamship Company (Sint
Eustatius) N.V.
|
Netherlands
|
Restricted
|
100%
|
Shore Terminals LLC
|
Delaware
|
Restricted
|
100%
|
ST Linden Terminal, LLC
|
Delaware
|
Restricted
|
100%
|
Star Creek Ranch, LLC
|
Delaware
|
Restricted
|
100%
|
Acknowledged and Agreed:
|
|
|
|
NUST
AR
LOGISTICS,
L.P.
|
|
|
|
By:
|
NuStar GP, Inc., its General Partner
|
|
|
By:
|
/s/ Thomas R. Shoaf
|
Name:
|
Thomas R. Shoaf
|
Title:
|
Executive Vice President and Chief Financial Officer
|
NUSTAR ENERGY L.P.
|
|
|
|
By:
|
Riverwalk Logistics, L.P., its General Partner
|
|
|
By:
|
NuStar GP, LLC, its General Partner
|
|
|
By:
|
/s/ Thomas R. Shoaf
|
Name:
|
Thomas R. Shoaf
|
Title:
|
Executive Vice President and Chief Financial Officer
|
GUARANTORS
|
|
|
|
NUSTAR PIPELINE OPERATING PARTNERSHIP L.P.
|
|
|
|
By:
|
NuStar Pipeline Company, LLC, its General Partner
|
|
|
By:
|
/s/ Thomas R. Shoaf
|
Name:
|
Thomas R. Shoaf
|
Title:
|
Executive Vice President and Chief Financial Officer
|
By:
|
/s/ James D. Weinstein
|
Name:
|
James D. Weinstein
|
Title:
|
Managing Director
|
By:
|
/s/ Anastasiya Haurylenia
|
Name:
|
Anastasiya Haurylenia
|
Title:
|
Vice President, Portfolio Management
|
By:
|
/s/ Lawrence Blat
|
Name:
|
Lawrence Blat
|
Title:
|
Vice President Syndications
|
|
Six Months
|
|
|
||||||||||||||||||||
|
Ended
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
June 30,
|
|
Years Ended December 31,
|
||||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||||
Earnings:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) from continuing operations before provision for income taxes and income from equity investees
|
$
|
88,745
|
|
|
$
|
161,976
|
|
|
$
|
320,658
|
|
|
$
|
220,174
|
|
|
$
|
(132,786
|
)
|
|
$
|
(132,173
|
)
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed charges
|
89,890
|
|
|
154,085
|
|
|
150,661
|
|
|
153,236
|
|
|
149,090
|
|
|
122,286
|
|
||||||
Amortization of capitalized interest
|
904
|
|
|
1,722
|
|
|
1,573
|
|
|
1,385
|
|
|
1,216
|
|
|
1,012
|
|
||||||
Distributions from joint ventures
|
—
|
|
|
—
|
|
|
2,500
|
|
|
7,587
|
|
|
7,956
|
|
|
6,364
|
|
||||||
Less:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest capitalized
|
(1,675
|
)
|
|
(3,414
|
)
|
|
(5,549
|
)
|
|
(5,667
|
)
|
|
(4,501
|
)
|
|
(7,737
|
)
|
||||||
Total earnings
|
$
|
177,864
|
|
|
$
|
314,369
|
|
|
$
|
469,843
|
|
|
$
|
376,715
|
|
|
$
|
20,975
|
|
|
$
|
(10,248
|
)
|
Fixed charges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense, net
|
$
|
82,026
|
|
|
$
|
138,350
|
|
|
$
|
131,868
|
|
|
$
|
132,281
|
|
|
$
|
127,119
|
|
|
$
|
90,535
|
|
Interest capitalized
|
1,675
|
|
|
3,414
|
|
|
5,549
|
|
|
5,667
|
|
|
4,501
|
|
|
7,737
|
|
||||||
Rental expense interest factor (a)
|
6,189
|
|
|
12,321
|
|
|
13,244
|
|
|
15,288
|
|
|
17,470
|
|
|
24,014
|
|
||||||
Total fixed charges
|
$
|
89,890
|
|
|
$
|
154,085
|
|
|
$
|
150,661
|
|
|
$
|
153,236
|
|
|
$
|
149,090
|
|
|
$
|
122,286
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Preferred unit distributions (b)
|
$
|
14,763
|
|
|
$
|
1,925
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total fixed charges plus preferred unit distributions (b)
|
$
|
104,653
|
|
|
$
|
156,010
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Ratio of earnings to fixed charges
|
2.0x
|
|
|
2.0x
|
|
|
3.1x
|
|
|
2.5x
|
|
|
(c)
|
|
|
(d)
|
|
||||||
Ratio of earnings to fixed charges plus preferred unit distributions (b)
|
1.7x
|
|
|
2.0x
|
|
|
|
|
|
|
|
|
|
(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 years ended December 31, 2015, 2014, 2013 and 2012, we had no preferred units outstanding.
|
(c)
|
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.
|
(d)
|
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
|
August 8, 2017
|
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
|
August 8, 2017
|