NuStar GP Holdings, LLC (NYSE:NSH) today announced first quarter
2017 net income of $17.0 million, or $0.39 per unit. Distributable
cash flow (DCF) available to unitholders for the first quarter of
2017 was $25.5 million.
With respect to the quarterly distribution to unitholders for
the first quarter of 2017, NuStar GP Holdings, LLC announced that
its board of directors has declared a distribution of $0.545 per
unit. The first quarter 2017 distribution will be paid on May 16,
2017 to holders of record as of May 8, 2017.
“NuStar GP Holdings, LLC’s first quarter 2017 results were
positively impacted by NuStar Energy L.P.’s recent upsized equity
offering of 14,375,000 common units,” 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 10:00 a.m. CT
today, April 24, 2017, to discuss the financial and operational
results for the first quarter of 2017. Investors interested in
listening to the discussion may dial toll-free 844/889-7787,
passcode 8863375. International callers may access the discussion
by dialing 661/378-9931, passcode 8863375. The company intends to
have a playback available following the discussion, which may be
accessed by dialing toll-free 855/859-2056, passcode 8863375.
International callers may access the playback by dialing
404/537-3406, passcode 8863375. The playback will be available
until 1:00 p.m. CT on May 24, 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/8beg7bko 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., including the
consummation of NuStar Energy L.P.’s recently announced acquisition
of Navigator Energy Services, LLC, 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 March 31,
2017 2016 Statement of Income Data:
Equity in earnings of NuStar Energy L.P. $ 18,112 $ 17,015
General and administrative expenses (828 ) (832 ) Other income, net
— 613 Interest expense, net (292 ) (246 ) Income before
income tax benefit 16,992 16,550 Income tax benefit — 126
Net income $ 16,992 $ 16,676 Net
income per unit $ 0.39 $ 0.39 Weighted average number of common
units outstanding 42,951,749 42,930,549
Equity in
Earnings of NuStar Energy L.P.:
General partner interest $ 804 $ 932 General partner incentive
distribution 12,912 10,805 General partner’s interest
in earnings and incentive distributions of NuStar Energy L.P.
13,716 11,737 Limited partner interest in earnings of NuStar Energy
L.P. 5,117 5,999 Amortization of step-up in basis related to NuStar
Energy L.P.’s assets and liabilities (721 ) (721 ) Equity in
earnings of NuStar Energy L.P. $ 18,112 $ 17,015
Cash Flow Data: Net cash provided by operating
activities $ 16,875 $ 14,383 Net cash provided by investing
activities $ 5,965 $ 8,096 Net cash used in financing activities $
(22,459 ) $ (19,397 )
Distributable Cash Flow (Note
1): Cash distributions from NuStar Energy L.P. associated with:
General partner interest $ 2,343 $ 1,961 General partner incentive
distribution 12,912 10,805 Limited partner interest – common units
11,185 11,144 Total cash distributions expected from
NuStar Energy L.P. 26,440 23,910 Adjustments: General and
administrative expenses (828 ) (832 ) Income tax benefit — 126
Interest expense, net (292 ) (246 ) Unit-based compensation 152
114 DCF $ 25,472 $ 23,072 Total
distribution to unitholders $ 23,409 $ 23,397
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 March 31, 2017
2016 Net income $ 16,992 $ 16,676 Less equity in
earnings of NuStar Energy L.P. (18,112 ) (17,015 ) Plus cash
distributions expected from NuStar Energy L.P. 26,440 23,910
Unit-based compensation items (a) 152 (499 ) DCF 25,472
23,072 Less cash distributions expected from NuStar Energy L.P.
(26,440 ) (23,910 ) Distributions of equity in earnings of NuStar
Energy L.P. 18,112 17,015 Changes in current assets and liabilities
(362 ) (1,991 ) Changes in noncurrent assets and liabilities and
other items 93 197 Net cash provided by operating
activities $ 16,875 $ 14,383 (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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version on businesswire.com: http://www.businesswire.com/news/home/20170424005441/en/
NuStar Energy, L.P., San AntonioInvestors, Chris Russell,
Treasurer and Vice President Investor RelationsInvestor Relations:
210-918-3507orMedia, Mary Rose Brown, Executive Vice President and
Chief Administrative Officer,Corporate Communications:
210-918-2314website: http://www.nustarenergy.com
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