NSH
$29.00
Nustar Gp Holdings Llc
($.25)
(.85%)
Earnings Details
4th Quarter December 2016
Tuesday, January 31, 2017 6:45:05 AM
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Summary

Nustar Gp Holdings Llc (NSH) Recent Earnings

Nustar Gp Holdings Llc (NSH) reported 4th Quarter December 2016 earnings of $0.14 per share on revenue of $6.7 million. The consensus earnings estimate was $0.39 per share. Revenue fell 61.6% compared to the same quarter a year ago.

NuStar GP Holdings LLC is engaged in refining, marketing and operating petroleum product terminals and petroleum liquids pipelines. It manages its operations through the three operating segments, storage, pipeline and marketing.

Results
Reported Earnings
$0.14
Earnings Whisper
-
Consensus Estimate
$0.39
Reported Revenue
$6.7 Mil
Revenue Estimate
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

NuStar GP Holdings, LLC Reports Earnings for the Fourth Quarter and Full-Year 2016

NuStar GP Holdings, LLC (NSH) today announced fourth quarter 2016 net income of $6.0 million, or $0.14 per unit, which was impacted by a reduction of $8.7 million in equity in earnings of NuStar Energy L.P. related to NuStar Energy L.P.’s $58.7 million non-cash charge to reduce the value of its term loan to Axeon due to the announced sale of Axeon’s asphalt marketing business that NuStar Energy L.P. sold to Axeon in 2014. For the year ended December 31, 2016, net income was $55.1 million, or $1.28 per unit.

Distributable cash flow (DCF) available to unitholders for the fourth quarter of 2016 and for the year ended December 31, 2016 was $23.3 million and $92.5 million, respectively.

As previously announced on January 27, 2017, the fourth quarter 2016 distribution of $0.545 per unit will be paid on February 15, 2017 to holders of record as of February 8, 2017.

"NuStar GP Holdings, LLC’s fourth quarter and full year 2016 results were primarily driven by strong performance from NuStar Energy L.P.’s base pipeline and storage operations," said Brad Barron, President and Chief Executive Officer of NuStar Energy L.P. and NuStar GP Holdings, LLC.

A conference call with management is scheduled for 9:00 a.m. CT today, January 31, 2017, to discuss the financial and operational results for the fourth quarter of 2016. Investors interested in listening to the discussion may dial toll-free 844/889-7787, passcode 48334486. International callers may access the discussion by dialing 661/378-9931, passcode 48334486. The company intends to have a playback available following the discussion, which may be accessed by dialing toll-free 855/859-2056, passcode 48334486. International callers may access the playback by dialing 404/537-3406, passcode 48334486. The playback will be available until 1:00 p.m. CT on March 2, 2017.

Investors interested in listening to the live discussion or a replay via the internet may access the discussion directly at http://edge.media-server.com/m/p/9594wmas or by logging on to NuStar GP Holdings, LLC’s website at www.nustargpholdings.com.

The discussion will disclose certain non-GAAP financial measures. Reconciliations of certain of these non-GAAP financial measures to U.S. GAAP may be found in this press release, with additional reconciliations located on the Financials page of the Investors section of NuStar GP Holdings, LLC’s website at www.nustargpholdings.com.

NuStar GP Holdings, LLC is a publicly traded limited liability company that owns the general partner interest, an approximate 13 percent common limited partner interest and the incentive distribution rights in NuStar Energy L.P., one of the largest independent liquids terminal and pipeline operators in the nation. NuStar has operations in the United States, Canada, Mexico, the Netherlands, including St. Eustatius in the Caribbean, and the United Kingdom. For more information, visit NuStar GP Holdings, LLC’s website at www.nustargpholdings.com.

This release serves as qualified notice to nominees under Treasury Regulation Sections 1.1446-4(b)(4) and (d). Please note that 100% of NuStar GP Holdings, LLC’s distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, all of NuStar GP Holdings, LLC’s distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate for individuals and corporations, as applicable. Nominees, and not NuStar GP Holdings, LLC, are treated as the withholding agents responsible for withholding on the distributions received by them on behalf of foreign investors.

Cautionary Statement Regarding Forward-Looking Statements

This press release includes and/or the related conference call will include forward-looking statements regarding future events, such as the future performance of NuStar Energy L.P. and NuStar GP Holdings, LLC. All forward-looking statements are based on the company’s beliefs as well as assumptions made by and information currently available to the company. These statements reflect the company’s current views with respect to future events and are subject to various risks, uncertainties and assumptions. These risks, uncertainties and assumptions are discussed in NuStar Energy L.P.’s and NuStar GP Holdings, LLC’s 2015 annual reports on Form 10-K and subsequent filings with the Securities and Exchange Commission. Actual results may differ materially from those described in the forward-looking statements.

NuStar GP Holdings, LLC and Subsidiaries
Consolidated Financial Information
(Unaudited, Thousands of Dollars, Except Unit and Per Unit Data)
Three Months Ended December 31,
Year Ended December 31,
2016
2015
2016
2015
Statement of Income Data:
Equity in earnings of NuStar Energy L.P.
$
6,671
$
17,389
$ 56,096
$
79,673
General and administrative expenses
(669 )
(641 )
(3,046 )
(3,338 )
Other income (expense), net
266
(2,869 )
3,021
(2,333 )
Interest expense, net
(280 )
(232 )
(1,069 )
(893 )
Income before income tax benefit (expense)
5,988
13,647
55,002
73,109
Income tax benefit (expense)
11
(688 )
66
(901 )
Net income
$
5,999
$
12,959
$ 55,068
$
72,208
Basic and diluted net income per unit
$
0.14
$
0.30
$
1.28
$
1.68
Equity in Earnings of NuStar Energy L.P.:
General partner interest
$
(480 )
$
973
$
2,091
$
5,270
10,907
10,805
43,407
43,220
General partner incentive distribution
10,427
11,778
45,498
48,490
General partner’s interest in earnings and incentive distributions
of NuStar Energy L.P.
(3,035 )
6,332
13,482
34,067
Limited partner interest in earnings of NuStar Energy L.P.
(721 )
(721 )
(2,884 )
(2,884 )
Amortization of step-up in basis related to NuStar Energy L.P.’s
assets and liabilities
Equity in earnings of NuStar Energy L.P.
$
6,671
$
17,389
$ 56,096
$
79,673
Weighted average number of common units outstanding
42,936,397
42,916,143
42,932,320
42,914,297
Cash Flow Data:
Net cash provided by operating activities
6,162
13,509
49,751
75,899
Net cash provided by investing activities
17,273
9,648
40,286
14,848
Net cash used in financing activities
(23,588 )
(23,389 )
(89,864 )
(93,553 )
Distributable Cash Flow (Note 1):
Cash distributions from NuStar Energy L.P. associated with:
General partner interest
$
1,979
$
1,961
$
7,877
$
7,844
General partner incentive distribution
10,907
10,805
43,407
43,220
Limited partner interest - common units
11,185
11,227
44,699
45,073
Total cash distributions expected from NuStar Energy L.P.
24,071
23,993
95,983
96,137
Adjustments:
General and administrative expenses
(669 )
(641 )
(3,046 )
(3,338 )
Income tax benefit (expense)
11
(688 )
66
(901 )
Interest expense, net
(280 )
(232 )
(1,069 )
(893 )
Unit-based compensation
$
159
$ --
$
535
$ --
DCF
$ 23,292
$
22,432
$ 92,469
$
91,005
Total distribution to unitholders
$ 23,408
$
23,397
$ 93,601
$
93,561
NuStar GP Holdings, LLC and Subsidiaries
Consolidated Financial Information - Continued
(Unaudited, Thousands of Dollars)
Note 1: NuStar GP Holdings, LLC utilizes distributable cash
flow (DCF) as a financial measure, although it is not defined in
U.S. generally accepted accounting principles. Management believes
DCF provides useful information to investors and other external
users of our financial information because (i) DCF provides
additional information about the cash the business is generating
and (ii) investors and other external users of our financial
statements benefit from having access to the same financial
measure being utilized by management and our board of directors
when making financial and planning decisions. Our board of
directors and management use DCF when assessing our ability to
fund distributions and our ability to service debt. DCF is a
widely accepted financial indicator used by our industry’s
investment community to compare company performance. DCF is used
by our industry’s investment community, in part, because the value
of our company’s units is partially based on its yield, and its
yield is based on the cash distributions a company can pay its
unitholders.
DCF is not intended to represent cash flows from operations, and is
not presented as an alternative to net income. DCF should not be
considered in isolation or as a substitute for a measure of
performance prepared in accordance with U.S. generally accepted
accounting principles. The following is a reconciliation of net
income to DCF and net cash provided by operating activities:
Three Months Ended December 31,
Year Ended December 31,
2016
2015
2016
2015
Net income
$ 5,999
$
12,959
$ 55,068
$
72,208
Less equity in earnings of NuStar Energy L.P.
(6,671 )
(17,389 )
(56,096 )
(79,673 )
Plus cash distributions expected from NuStar Energy L.P.
24,071
23,993
95,983
96,137
Gain related to NuStar Energy L.P.’s issuance of common limited
(266 )
--
(2,408 )
--
partner units
Unit-based compensation items (a)
159
2,869
(78 )
2,333
DCF
23,292
22,432
92,469
91,005
Less cash distributions expected from NuStar Energy L.P.
(24,071 )
(23,993 )
(95,983 )
(96,137 )
Distributions of equity in earnings of NuStar Energy L.P.
6,671
17,389
56,096
79,673
Changes in current assets and liabilities
196
(2,834 )
(3,336 )
296
Changes in noncurrent assets and liabilities
74
515
505
1,062
and other items
Net cash provided by operating activities
$ 6,162
$
13,509
$ 49,751
$
75,899
(a)
We intend to satisfy the vestings of equity-based awards with the
issuance of our units. As such, the expenses related to these awards
are considered non-cash and added back to DCF. These awards include
distribution equivalent rights (DERs). Payments made in connection
with DERs are deducted from DCF. Also included in this item are
gains and losses resulting from the satisfaction of certain
long-term incentive awards prior to the employee transfer on March
1, 2016.

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SOURCE: NuStar GP Holdings, LLC

NuStar Energy, L.P., San Antonio
Investors, Chris Russell, Treasurer and Vice President Investor Relations
Investor Relations: 210-918-3507
or
Media, Mary Rose Brown, Executive Vice President,
Corporate Communications: 210-918-2314