NuStar Reports Record Amount of Crude Oil from Permian Pipeline

San Antonio-based pipeline and terminal operator NuStar Energy LP reported a slight decline in second-quarter profits, but the company improved debt and saw record amounts of crude oil flow through its pipeline system. Permian pipelines during the period.

NuStar posted adjusted earnings of $57.6 million, or 19 cents per unit, in the three months ending June 30. That was a 9% drop from a year ago.

Over the past year, NuStar has sold eight storage terminals on the East Coast and one in Nova Scotia, resulting in lower second-quarter profits from a year ago, when the company was still these terminals in his portfolio. The company sold the storage terminals for over $300 million and used the proceeds to pay down debt.

Revenue rose slightly to $430 million from $427 million a year ago. Its results were broadly in line with Wall Street analysts’ expectations.

Brad Barron, president and CEO of NuStar Energy LP, speaks Tuesday, April 22, 2019, during the company’s annual meeting at the company’s headquarters in San Antonio.

William Luther, staff member / staff photographer

NuStar said it had $3.18 billion in debt at the end of June, up from $3.49 billion in the same period last year.

“We are pleased that our recent divestitures have allowed us to continue to make progress toward our stated goal of significantly improving our debt metrics and strengthening our financial strength and flexibility,” said Chairman and Chief Executive Officer Brad Barron. in a press release.

Total throughput – or the daily volume of fuel flowing through a pipeline – through NuStar’s 10,000-mile pipeline network fell nearly 3% from a year ago to 1.8 million barrels of crude oil and refined products. He attributed the decline to operational issues at customer refineries.

Still, NuStar’s Permian crude oil pipeline system processed a record 522,000 barrels per day, a 16% increase over the same period last year, the company said.

The company’s pipeline business generated revenue of $101 million, up from $96.5 million a year ago.

“While overall U.S. oil production faced supply chain issues and other challenges this year, our key Permian producers continued to successfully execute their drilling plans,” Barron said.

NuStar’s storage terminals recorded throughput of 396,000 barrels per day, an increase of nearly 3% over last year. Segment revenue fell to $31.2 million from $46.2 million last year.

On the West Coast, NuStar operates an extensive network of pipelines to supply low-carbon fuels such as renewable diesel and ethanol. The company recently expanded its ability to store and transport cleaner fuels, which “should further reinforce the important role NuStar is playing in facilitating California’s transition to low-carbon renewable fuels,” the company said. society.

NuStar currently manages 87% of California’s sustainable aviation fuel, as well as 21% of its renewable diesel and 13% of its ethanol.

The company declared a quarterly cash distribution of 40 cents per share. NuStar’s distributed cash flow this quarter was $83 million, down 15%.

On Thursday, stock analysts at Wells Fargo and Barclays both set price targets of $18 per NuStar unit.

NuStar units were trading at $15.05 on Thursday afternoon, down 4.5% from Wednesday’s close.

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