Third Quarter 2018 Distributable Cash Flow Available to Common Limited Partners Increases 32%
Pending Sale of European Assets to Accelerate Improvement of Debt Metrics
2018 Permian Crude System Exit Rate Remains on Pace for 360,000 to 380,000 Barrels Per Day
Long-Term Agreement with Trafigura to Transport WTI on NuStar’s South Texas Crude System to NuStar’s Corpus Christi North Beach Export Terminal for Storage and Dock Services
NuStar Energy L.P. (NYSE: NS) today announced net income of $48 million for the third quarter of 2018, up 25% from $39 million in the third quarter of 2017. Earnings before interest, taxes, depreciation and amortization (EBITDA) were $172 million, up $16 million or 10% from $156 million for the third quarter 2017.
The earnings per unit (EPU) for the third quarter were a net loss of $3.49 per common unit, due to a one-time, non-cash charge of $377.1 million related to the recent completion of the simplification transaction, which merged NuStar GP Holdings, LLC and NuStar Energy. This non-cash charge did not impact net income, EBITDA or distributable cash flow (DCF). Excluding this charge from the calculation of EPU, third quarter adjusted earnings per common unit were $0.13.
DCF available to common limited partners was $88 million for the third quarter of 2018, up $22 million or 32% compared to $67 million in the third quarter of 2017. The distribution coverage ratio to the common limited partners was 1.38 times for the third quarter and 1.42 times for the nine months ended September 30, 2018.
“Our strong third quarter 2018 results were primarily driven by continued volume ramp on our Permian Crude System, as well as a significant contribution from our East Pipeline System due to our acquisition of the assets in Council Bluffs, Iowa from CHS earlier this year,” said Brad Barron, President and Chief Executive Officer of NuStar Energy L.P.
https://seekingalpha.com/pr/17321929-nustar-energy-l-p-reports-25-percent-increase-net-income