NuStar Energy Q2 Profit Rises - Quick Facts

(RTTNews) - NuStar Energy L.P. (NS) reported second quarter net income applicable to limited partners of $43.6 million or $0.56 per unit, up from $21.6 million or $0.28 per unit, earned in the second quarter of 2013. Analysts polled by Thomson Reuters expected the company to report earnings of $0.46 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter dropped to $749.75 million from $902.01 million last year. Wall Street analysts had a consensus revenue estimate of $843.04 million for the quarter.

The partnership also announced that its board of directors has declared a second quarter 2014 distribution of $1.095 per unit. The second quarter 2014 distribution will be paid on August 11, 2014, to holders of record as of August 6, 2014.

Phase 2 of the South Texas Crude Oil Pipeline expansion is expected to come on line during the first quarter of 2015 and will allow for increased throughputs of up to 65,000 barrels per day. NuStar's 12-inch pipeline between Mont Belvieu and Corpus Christi, Texas began generating distributable cash flow in the second quarter and is expected to be in full NGL service in the second quarter of 2015, at which time it is expected to generate an incremental $23 million in annual EBITDA, based on committed volumes.

In regard to full year 2014 guidance, the company still expects its pipeline segment EBITDA to be $40 million to $60 million higher than 2013 and its storage segment adjusted EBITDA to be comparable to 2013. However, the company now expects its fuels marketing segment to generate EBITDA in the range of $20 million to $30 million. Based on these projections, the company expects to cover its distributions for the full year 2014.

The company noted that its 2014 internal growth spending projections have been reduced slightly to reflect the deferral of spending on some of its key growth projects into 2015. Spending is now expected to be in the range of $330 million to $350 million, the majority of which will be spent on projects in its pipeline segment.