NuStar Energy Covers Distribution in the Fourth Quarter and for the Full-Year 2015
NuStar Energy L.P. (NYSE: NS) announced fourth quarter 2015 earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations were $150.6 million, compared to fourth quarter 2014 EBITDA of $136.0 million. For the year ended December 31, 2015, the partnership reported $662.7 million of EBITDA from continuing operations, an increase of 21% over the $547.9 million reported for the year ended December 31, 2014 and the highest reported in the partnership’s history.
Fourth quarter 2015 distributable cash flow (DCF) from continuing operations available to limited partners was $89.6 million, or $1.15 per unit, compared to 2014 fourth quarter DCF from continuing operations available to limited partners of $95.4 million, or $1.23 per unit. For the year ended December 31, 2015, DCF from continuing operations available to limited partners was $377.9 million, or $4.85 per unit, which was higher than the $354.8 million, or $4.56 per unit, earned in 2014.
“2015 was another great year for NuStar, despite challenging industry fundamentals,” said Brad Barron, President and Chief Executive Officer of NuStar Energy L.P. and NuStar GP Holdings, LLC. “We were able to exceed a one-to-one distribution coverage ratio for a second year in a row.
“Key contributions from our Linden terminal acquisition, increased storage renewal rates at many of our terminal locations, higher utilization across our terminal system and strong South Texas crude volumes across our docks at our Corpus Christi North Beach facility provided for an 11% increase in storage revenues compared to 2014. Our pipeline segment continued to benefit from our investments in our South Texas Crude Oil Pipeline system, as pipeline revenues increased 7% year over year.”
Barron went on to say, “DCF from continuing operations available to limited partners covers the distribution to the limited partners by 1.05 times for the fourth quarter of 2015 and by 1.11 times for the full-year 2015, our highest annual distribution coverage since 2009.”
The partnership reported fourth quarter net income applicable to limited partners of $47.5 million, or $0.61 per unit, compared to net income applicable to limited partners of $41.5 million, or $0.54 per unit, for the fourth quarter of 2014. For the year ended December 31, 2015, the partnership reported net income applicable to limited partners of $257.4 million, or $3.30 per unit, compared to net income applicable to limited partners of $163.3 million, or $2.10 per unit, in 2014.
Absent a gain related to the January 2, 2015 acquisition of the remaining 50% ownership in the Linden terminal, adjusted EBITDA from continuing operations for the year ended December 31, 2015 would have been $606.5 million, still a record for the partnership, while adjusted net income applicable to limited partners would have been $202.2 million, or $2.59 per unit.
The partnership also announced that its board of directors has declared a fourth quarter 2015 distribution of $1.095 per unit. The fourth quarter 2015 distribution will be paid on February 12, 2016 to holders of record as of February 8, 2016.
More: Fourth Quarter Earnings Conference Call Details
Source: NuStar Energy