|
|
|
|
|
|
|
|
Delaware
|
001-16417
|
74-2956831
|
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(I.R.S. Employer Identification No.)
|
|
|
|
|
19003 IH-10 West
San Antonio, Texas 78257
|
|
|
(Address of principal executive offices)
|
|
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|
|
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(210) 918-2000
|
|
|
(Registrant’s telephone number, including area code)
|
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|
Not applicable
|
|
|
(Former name or former address, if changed since last report.)
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|
Exhibit Number
|
|
Exhibit
|
|
|
|
|
Press Release dated August 7, 2018.
|
|
NUSTAR ENERGY L.P.
|
|
||
|
|
|
|
|
|
By:
|
Riverwalk Logistics, L.P.
|
||
|
|
its general partner
|
||
|
|
|
|
|
|
|
By:
|
NuStar GP, LLC
|
|
|
|
|
its general partner
|
|
|
|
|
|
|
Date: August 7, 2018
|
|
|
By:
|
/s/ Amy L. Perry
|
|
|
|
Name:
|
Amy L. Perry
|
|
|
|
Title:
|
Senior Vice President, General Counsel-Corporate & Commercial Law and Corporate Secretary
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Statement of Income Data:
|
|
|
|
|
|
|
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Service revenues
|
$
|
302,131
|
|
|
$
|
283,700
|
|
|
$
|
593,544
|
|
|
$
|
550,162
|
|
Product sales
|
184,073
|
|
|
151,788
|
|
|
368,541
|
|
|
372,756
|
|
||||
Total revenues
|
486,204
|
|
|
435,488
|
|
|
962,085
|
|
|
922,918
|
|
||||
Costs and expenses:
|
|
|
|
|
|
|
|
||||||||
Costs associated with service revenues:
|
|
|
|
|
|
|
|
||||||||
Operating expenses (excluding depreciation and amortization expense)
|
131,672
|
|
|
116,400
|
|
|
240,556
|
|
|
217,426
|
|
||||
Depreciation and amortization expense
|
73,613
|
|
|
65,402
|
|
|
143,510
|
|
|
120,073
|
|
||||
Total costs associated with service revenues
|
205,285
|
|
|
181,802
|
|
|
384,066
|
|
|
337,499
|
|
||||
Cost of product sales
|
170,849
|
|
|
144,479
|
|
|
347,577
|
|
|
352,285
|
|
||||
General and administrative expenses
|
27,981
|
|
|
33,604
|
|
|
47,755
|
|
|
58,199
|
|
||||
Other depreciation and amortization expense
|
2,251
|
|
|
2,199
|
|
|
4,369
|
|
|
4,392
|
|
||||
Total costs and expenses
|
406,366
|
|
|
362,084
|
|
|
783,767
|
|
|
752,375
|
|
||||
Operating income
|
79,838
|
|
|
73,404
|
|
|
178,318
|
|
|
170,543
|
|
||||
Interest expense, net
|
(48,936
|
)
|
|
(45,612
|
)
|
|
(96,708
|
)
|
|
(82,026
|
)
|
||||
Other income, net
|
1,412
|
|
|
88
|
|
|
81,164
|
|
|
228
|
|
||||
Income before income tax expense
|
32,314
|
|
|
27,880
|
|
|
162,774
|
|
|
88,745
|
|
||||
Income tax expense
|
2,915
|
|
|
1,630
|
|
|
7,242
|
|
|
4,555
|
|
||||
Net income
|
$
|
29,399
|
|
|
$
|
26,250
|
|
|
$
|
155,532
|
|
|
$
|
84,190
|
|
|
|
|
|
|
|
|
|
||||||||
Net income applicable to common limited partners
|
$
|
13,705
|
|
|
$
|
4,364
|
|
|
$
|
121,200
|
|
|
$
|
42,816
|
|
Basic net income per common unit
|
$
|
0.15
|
|
|
$
|
0.05
|
|
|
$
|
1.30
|
|
|
$
|
0.51
|
|
Basic weighted-average common units outstanding
|
93,192,238
|
|
|
90,345,469
|
|
|
93,187,038
|
|
|
84,526,506
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Other Data (Note 1):
|
|
|
|
|
|
|
|
||||||||
EBITDA
|
$
|
157,114
|
|
|
$
|
141,093
|
|
|
$
|
407,361
|
|
|
$
|
295,236
|
|
DCF available to common limited partners
|
$
|
82,057
|
|
|
$
|
60,267
|
|
|
$
|
173,789
|
|
|
$
|
149,209
|
|
|
June 30,
|
|
December 31,
|
||||||||
|
2018
|
|
2017
|
|
2017
|
||||||
Balance Sheet Data:
|
|
|
|
|
|
||||||
Total debt
|
$
|
3,443,366
|
|
|
$
|
3,521,939
|
|
|
$
|
3,648,059
|
|
Partners’ equity and series D preferred units
|
$
|
2,827,188
|
|
|
$
|
2,501,049
|
|
|
$
|
2,480,089
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Pipeline:
|
|
|
|
|
|
|
|
||||||||
Refined products pipelines throughput (barrels/day)
|
565,740
|
|
|
531,529
|
|
|
548,910
|
|
|
522,820
|
|
||||
Crude oil pipelines throughput (barrels/day):
|
839,574
|
|
|
558,182
|
|
|
815,568
|
|
|
483,909
|
|
||||
Total throughput (barrels/day)
|
1,405,314
|
|
|
1,089,711
|
|
|
1,364,478
|
|
|
1,006,729
|
|
||||
Throughput and other revenues
|
$
|
150,276
|
|
|
$
|
126,740
|
|
|
$
|
287,066
|
|
|
$
|
247,980
|
|
Operating expenses
|
48,706
|
|
|
40,197
|
|
|
91,047
|
|
|
73,271
|
|
||||
Depreciation and amortization expense
|
38,591
|
|
|
33,675
|
|
|
75,246
|
|
|
56,813
|
|
||||
Segment operating income
|
$
|
62,979
|
|
|
$
|
52,868
|
|
|
$
|
120,773
|
|
|
$
|
117,896
|
|
Storage:
|
|
|
|
|
|
|
|
||||||||
Throughput (barrels/day)
|
331,917
|
|
|
337,518
|
|
|
337,892
|
|
|
326,327
|
|
||||
Throughput terminal revenues
|
$
|
20,141
|
|
|
$
|
22,122
|
|
|
$
|
40,157
|
|
|
$
|
42,812
|
|
Storage terminal revenues
|
137,309
|
|
|
136,437
|
|
|
272,621
|
|
|
263,178
|
|
||||
Total revenues
|
157,450
|
|
|
158,559
|
|
|
312,778
|
|
|
305,990
|
|
||||
Operating expenses
|
78,244
|
|
|
70,783
|
|
|
144,069
|
|
|
132,922
|
|
||||
Depreciation and amortization expense
|
35,022
|
|
|
31,727
|
|
|
68,264
|
|
|
63,260
|
|
||||
Segment operating income
|
$
|
44,184
|
|
|
$
|
56,049
|
|
|
$
|
100,445
|
|
|
$
|
109,808
|
|
Fuels Marketing:
|
|
|
|
|
|
|
|
||||||||
Product sales and other revenue
|
$
|
180,483
|
|
|
$
|
153,918
|
|
|
$
|
366,321
|
|
|
$
|
376,620
|
|
Cost of product sales
|
172,724
|
|
|
147,013
|
|
|
351,401
|
|
|
357,612
|
|
||||
Gross margin
|
7,759
|
|
|
6,905
|
|
|
14,920
|
|
|
19,008
|
|
||||
Operating expenses
|
4,855
|
|
|
6,616
|
|
|
5,696
|
|
|
13,579
|
|
||||
Segment operating income
|
$
|
2,904
|
|
|
$
|
289
|
|
|
$
|
9,224
|
|
|
$
|
5,429
|
|
Consolidation and Intersegment Eliminations:
|
|
|
|
|
|
|
|
||||||||
Revenues
|
$
|
(2,005
|
)
|
|
$
|
(3,729
|
)
|
|
$
|
(4,080
|
)
|
|
$
|
(7,672
|
)
|
Cost of product sales
|
(1,875
|
)
|
|
(2,534
|
)
|
|
(3,824
|
)
|
|
(5,327
|
)
|
||||
Operating expenses
|
(133
|
)
|
|
(1,196
|
)
|
|
(256
|
)
|
|
(2,346
|
)
|
||||
Total
|
$
|
3
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
Consolidated Information:
|
|
|
|
|
|
|
|
||||||||
Revenues
|
$
|
486,204
|
|
|
$
|
435,488
|
|
|
$
|
962,085
|
|
|
$
|
922,918
|
|
Costs associated with service revenues:
|
|
|
|
|
|
|
|
||||||||
Operating expenses
|
131,672
|
|
|
116,400
|
|
|
240,556
|
|
|
217,426
|
|
||||
Depreciation and amortization expense
|
73,613
|
|
|
65,402
|
|
|
143,510
|
|
|
120,073
|
|
||||
Total costs associated with service revenues
|
205,285
|
|
|
181,802
|
|
|
384,066
|
|
|
337,499
|
|
||||
Cost of product sales
|
170,849
|
|
|
144,479
|
|
|
347,577
|
|
|
352,285
|
|
||||
Segment operating income
|
110,070
|
|
|
109,207
|
|
|
230,442
|
|
|
233,134
|
|
||||
General and administrative expenses
|
27,981
|
|
|
33,604
|
|
|
47,755
|
|
|
58,199
|
|
||||
Other depreciation and amortization expense
|
2,251
|
|
|
2,199
|
|
|
4,369
|
|
|
4,392
|
|
||||
Consolidated operating income
|
$
|
79,838
|
|
|
$
|
73,404
|
|
|
$
|
178,318
|
|
|
$
|
170,543
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net income
|
$
|
29,399
|
|
|
$
|
26,250
|
|
|
$
|
155,532
|
|
|
$
|
84,190
|
|
Interest expense, net
|
48,936
|
|
|
45,612
|
|
|
96,708
|
|
|
82,026
|
|
||||
Income tax expense
|
2,915
|
|
|
1,630
|
|
|
7,242
|
|
|
4,555
|
|
||||
Depreciation and amortization expense
|
75,864
|
|
|
67,601
|
|
|
147,879
|
|
|
124,465
|
|
||||
EBITDA
|
157,114
|
|
|
141,093
|
|
|
407,361
|
|
|
295,236
|
|
||||
Interest expense, net
|
(48,936
|
)
|
|
(45,612
|
)
|
|
(96,708
|
)
|
|
(82,026
|
)
|
||||
Reliability capital expenditures
|
(21,913
|
)
|
|
(10,380
|
)
|
|
(41,795
|
)
|
|
(15,402
|
)
|
||||
Income tax expense
|
(2,915
|
)
|
|
(1,630
|
)
|
|
(7,242
|
)
|
|
(4,555
|
)
|
||||
Mark-to-market impact of hedge transactions (a)
|
(437
|
)
|
|
(563
|
)
|
|
(231
|
)
|
|
(3,149
|
)
|
||||
Unit-based compensation (b)
|
1,783
|
|
|
1,618
|
|
|
3,120
|
|
|
3,706
|
|
||||
Preferred unit distributions
|
(16,245
|
)
|
|
(9,950
|
)
|
|
(32,235
|
)
|
|
(14,763
|
)
|
||||
Insurance gain adjustment (c)
|
10,609
|
|
|
—
|
|
|
(55,753
|
)
|
|
—
|
|
||||
Other items
|
2,997
|
|
|
(1,095
|
)
|
|
(1,587
|
)
|
|
(1,369
|
)
|
||||
DCF
|
$
|
82,057
|
|
|
$
|
73,481
|
|
|
$
|
174,930
|
|
|
$
|
177,678
|
|
Less DCF available to general partner
|
—
|
|
|
13,214
|
|
|
1,141
|
|
|
28,469
|
|
||||
DCF available to common limited partners
|
$
|
82,057
|
|
|
$
|
60,267
|
|
|
$
|
173,789
|
|
|
$
|
149,209
|
|
|
|
|
|
|
|
|
|
||||||||
Distributions applicable to common limited partners
|
$
|
64,205
|
|
|
$
|
101,869
|
|
|
$
|
120,121
|
|
|
$
|
203,782
|
|
Distribution coverage ratio (d)
|
1.28x
|
|
|
0.59x
|
|
|
1.45x
|
|
|
0.73x
|
|
(a)
|
DCF excludes the impact of unrealized mark-to-market gains and losses that arise from valuing certain derivative contracts, as well as the associated hedged inventory. The gain or loss associated with these contracts is realized in DCF when the contracts are settled.
|
(b)
|
We intend to satisfy the vestings of equity-based awards with the issuance of our common units. As such, the expenses related to these awards are considered non-cash and added back to DCF. Certain awards include distribution equivalent rights (DERs). Payments made in connection with DERs are deducted from DCF.
|
(c)
|
For the second quarter of 2018, DCF includes an adjustment for reliability capital expenditures incurred for hurricane repairs at our St. Eustatius terminal that were offset by insurance proceeds received in the first quarter.
|
(d)
|
Distribution coverage ratio is calculated by dividing DCF available to common limited partners by distributions applicable to common limited partners.
|