NSH
$22.15
Nustar Gp Holdings Llc
$.15
.68%
Earnings Details
2nd Quarter June 2017
Friday, July 28, 2017 6:45:01 AM
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Summary

Nustar Gp Holdings Llc (NSH) Recent Earnings

Nustar Gp Holdings Llc (NSH) reported 2nd Quarter June 2017 earnings of $0.56 per share on revenue of $11.0 million. The consensus earnings estimate was $0.35 per share on revenue of $19.2 million. Revenue fell 32.7% 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
$0.56
Earnings Whisper
-
Consensus Estimate
$0.35
Reported Revenue
$11.0 Mil
Revenue Estimate
$19.2 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

NuStar GP Holdings, LLC Reports Earnings Results for the Second Quarter of 2017

NuStar GP Holdings, LLC (NSH) today announced second quarter 2017 net income of $51.3 million, or $1.19 per unit. Distributable cash flow (DCF) available to unitholders for the second quarter of 2017 was $23.3 million.

With respect to the quarterly distribution to unitholders for the second quarter of 2017, NuStar GP Holdings, LLC announced that its board of directors has declared a distribution of $0.545 per unit. The second quarter 2017 distribution will be paid on August 15, 2017 to holders of record as of August 7, 2017.

"NuStar GP Holdings, LLC’s second quarter 2017 net income was positively impacted by NuStar Energy L.P.’s common equity offering in April, to finance a portion of NuStar Energy L.P.’s May 4, 2017 acquisition of Navigator Energy Services, LLC. This equity offering resulted in a non-cash gain of $41.6 million related to the increase in value of NuStar GP Holdings, LLC’s proportionate share of NuStar Energy L.P.’s capital," said Brad Barron, President and Chief Executive Officer of NuStar Energy L.P. and NuStar GP Holdings, LLC.

Barron then added, "To demonstrate our strong support for NuStar Energy L.P.’s acquisition of Navigator, NuStar GP Holdings, LLC agreed to temporarily forgo the Incentive Distribution Rights, or IDRs, to which it would otherwise be entitled for any NuStar Energy L.P. common equity that will be issued from the date the acquisition agreement was signed and through the 10 quarters thereafter, which begins with the distribution for the second quarter of 2017. The waiver is capped at $22 million."

Barron went on to say, "In the future NuStar GP Holdings, LLC should benefit from NuStar Energy L.P.’s acquisition of Navigator Energy Services, LLC. This acquisition provides NuStar Energy L.P. with a platform for future distribution growth, which in the long run should also translate into distribution growth for NuStar GP Holdings, LLC as well."

A conference call with management is scheduled for 9:00 a.m. CT today, July 28, 2017, to discuss the financial and operational results for the second quarter of 2017. Investors interested in listening to the discussion may dial toll-free 844/889-7787, passcode 48213974. International callers may access the discussion by dialing 661/378-9931, passcode 48213974. The company intends to have a playback available following the discussion, which may be accessed by dialing toll-free 855/859-2056, passcode 48213974. International callers may access the playback by dialing 404/537-3406, passcode 48213974. The playback will be available until 12:00 p.m. CT on August 27, 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/kcc929bt 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 11 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 2016 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 June 30,
Six Months Ended June 30,
2017
2016
2017
2016
Statement of Income Data:
Equity in earnings of NuStar Energy L.P.
$
10,963
$
16,280
$
29,075
$
33,295
General and administrative expenses
(855 )
(841 )
(1,683 )
(1,673 )
Other income, net
41,603
--
41,603
613
Interest expense, net
(394 )
(267 )
(686 )
(513 )
Income before income tax (expense) benefit
51,317
15,172
68,309
31,722
Income tax (expense) benefit
(6 )
(99 )
(6 )
27
Net income
$
51,311
$
15,073
$
68,303
$
31,749
Net income per unit
$
1.19
$
0.35
$
1.58
$
0.74
Weighted average number of common units outstanding
42,951,749
42,931,059
42,951,749
42,930,804
Equity in Earnings of NuStar Energy L.P.:
General partner interest
$
108
$
834
$
912
$
1,766
General partner incentive distribution
10,912
10,805
23,824
21,610
General partner’s interest in earnings and incentive distributions
11,020
11,639
24,736
23,376
of NuStar Energy L.P.
Limited partner interest in earnings of NuStar Energy L.P.
664
5,362
5,781
11,361
Amortization of step-up in basis related to NuStar Energy L.P.’s
(721 )
(721 )
(1,442 )
(1,442 )
assets and liabilities
Equity in earnings of NuStar Energy L.P.
$
10,963
$
16,280
$
29,075
$
33,295
Cash Flow Data:
Net cash provided by operating activities
$
9,951
$
12,967
$
26,826
$
27,350
Net cash provided by investing activities
$
1,874
$
7,670
$
7,839
$
15,766
Net cash used in financing activities
$ (12,126 )
$ (23,438 )
$ (34,585 )
$ (42,835 )
Distributable Cash Flow (Note 1):
Cash distributions from NuStar Energy L.P. associated with:
General partner interest
$
2,302
$
1,961
$
4,645
$
3,922
General partner incentive distribution
10,912
10,805
23,824
21,610
Limited partner interest - common units
11,185
11,185
22,370
22,329
Total cash distributions expected from NuStar Energy L.P.
24,399
23,951
50,839
47,861
Adjustments:
General and administrative expenses
(855 )
(841 )
(1,683 )
(1,673 )
Income tax (expense) benefit
(6 )
(99 )
(6 )
27
Interest expense, net
(394 )
(267 )
(686 )
(513 )
Unit-based compensation
153
131
305
245
DCF
$
23,297
$
22,875
$
48,769
$
45,947
Total distribution to unitholders
$
23,408
$
23,398
$
46,817
$
46,795
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 June 30,
Six Months Ended June 30,
2017
2016
2017
2016
Net income
$ 51,311
$
15,073
$ 68,303
$ 31,749
Less equity in earnings of NuStar Energy L.P.
(10,963 )
(16,280 )
(29,075 )
(33,295 )
Plus cash distributions expected from NuStar Energy L.P.
24,399
23,951
50,839
47,861
Gain related to NuStar Energy L.P.’s issuance of common limited
(41,603 )
--
(41,603 )
partner units
Unit-based compensation items (a)
153
131
305
(368 )
DCF
23,297
22,875
48,769
45,947
Less cash distributions expected from NuStar Energy L.P.
(24,399 )
(23,951 )
(50,839 )
(47,861 )
Distributions of equity in earnings of NuStar Energy L.P.
10,963
16,280
29,075
33,295
Changes in current assets and liabilities
(11 )
(2,422 )
(373 )
(4,413 )
Changes in noncurrent assets and liabilities and other items
101
185
194
382
Net cash provided by operating activities
$
9,951
$
12,967
$ 26,826
$ 27,350
(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 and Chief Administrative Officer,
Corporate Communications: 210-918-2314