DEI Document
DEI Document - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 31, 2016 | |
Document Information [Abstract] | ||
Entity Registrant Name | NuStar Energy L.P. | |
Entity Central Index Key | 1,110,805 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | ns | |
Amendment Flag | false | |
Entity Partnership Units Outstanding | 78,486,144 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 32,662 | $ 118,862 |
Accounts receivable, net of allowance for doubtful accounts of $7,827 and $8,473 as of September 30, 2016 and December 31, 2015, respectively | 159,978 | 145,064 |
Receivable from related party | 83 | 0 |
Inventories | 35,051 | 38,749 |
Other current assets | 26,231 | 31,176 |
Total current assets | 254,005 | 333,851 |
Property, plant and equipment, at cost | 5,342,360 | 5,209,160 |
Accumulated depreciation and amortization | (1,669,471) | (1,525,589) |
Property, plant and equipment, net | 3,672,889 | 3,683,571 |
Intangible assets, net | 101,630 | 112,011 |
Goodwill | 696,637 | 696,637 |
Deferred income tax asset | 2,186 | 2,858 |
Other long-term assets, net | 263,071 | 296,597 |
Total assets | 4,990,418 | 5,125,525 |
Current liabilities: | ||
Accounts payable | 105,311 | 125,147 |
Payable to related party | 0 | 14,799 |
Short-term debt | 7,000 | 84,000 |
Accrued interest payable | 27,614 | 34,286 |
Accrued liabilities | 52,520 | 55,194 |
Taxes other than income tax | 16,621 | 12,810 |
Income tax payable | 2,064 | 5,977 |
Total current liabilities | 211,130 | 332,213 |
Long-term debt | 3,153,049 | 3,055,612 |
Long-term payable to related party | 0 | 32,080 |
Deferred income tax liability | 26,635 | 24,810 |
Other long-term liabilities | 129,611 | 70,966 |
Commitments and contingencies (Note 4) | ||
Partners' equity: | ||
Limited partners (78,486,144 and 77,886,078 common units outstanding as of September 30, 2016 and December 31, 2015, respectively) | 1,565,307 | 1,661,900 |
General partner | 34,086 | 36,738 |
Accumulated other comprehensive loss | (129,400) | (88,794) |
Total partners' equity | 1,469,993 | 1,609,844 |
Total liabilities and partners' equity | $ 4,990,418 | $ 5,125,525 |
CONSOLIDATED BALANCE SHEETS Non
CONSOLIDATED BALANCE SHEETS Non-Printing - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Allowance for doubtful accounts | $ 7,827 | $ 8,473 |
Limited partners common units outstanding (in units) | 78,486,144 | 77,886,078 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues: | ||||
Service revenues | $ 277,758 | $ 288,574 | $ 814,727 | $ 833,128 |
Product sales | 163,660 | 204,992 | 470,198 | 785,993 |
Total revenues | 441,418 | 493,566 | 1,284,925 | 1,619,121 |
Costs and expenses: | ||||
Cost of product sales | 155,129 | 193,958 | 441,736 | 738,074 |
Operating expenses: | ||||
Third parties | 117,432 | 87,730 | 313,634 | 254,658 |
Related party | 0 | 34,904 | 21,681 | 100,761 |
Total operating expenses | 117,432 | 122,634 | 335,315 | 355,419 |
General and administrative expenses: | ||||
Third parties | 26,957 | 8,535 | 62,906 | 25,188 |
Related party | 0 | 15,144 | 10,493 | 50,237 |
Total general and administrative expenses | 26,957 | 23,679 | 73,399 | 75,425 |
Depreciation and amortization expense | 53,946 | 52,301 | 160,739 | 157,523 |
Total costs and expenses | 353,464 | 392,572 | 1,011,189 | 1,326,441 |
Operating income | 87,954 | 100,994 | 273,736 | 292,680 |
Interest expense, net | (35,022) | (33,448) | (103,374) | (98,309) |
Other income (expense), net | 362 | 1,776 | (10) | 61,892 |
Income from continuing operations before income tax expense | 53,294 | 69,322 | 170,352 | 256,263 |
Income tax expense | 2,153 | 4,306 | 9,293 | 9,797 |
Income from continuing operations | 51,141 | 65,016 | 161,059 | 246,466 |
Income from discontinued operations, net of tax | 0 | 0 | 0 | 774 |
Net income | $ 51,141 | $ 65,016 | $ 161,059 | $ 247,240 |
Basic and diluted net income per unit applicable to limited partners: | ||||
Continuing operations | $ 0.49 | $ 0.68 | $ 1.58 | $ 2.68 |
Discontinued operations | 0 | 0 | 0 | 0.01 |
Total (Note 11) | $ 0.49 | $ 0.68 | $ 1.58 | $ 2.69 |
Basic weighted-average limited partner units outstanding | 78,031,053 | 77,886,078 | 77,934,802 | 77,886,078 |
Diluted weighted-average limited partner units outstanding | 78,062,889 | 77,886,078 | 77,981,299 | 77,886,078 |
Comprehensive income | $ 48,652 | $ 38,878 | $ 120,453 | $ 231,843 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Non-Printing - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Diluted net income per unit applicable to limited partners | ||||
Continuing operations | $ 0.49 | $ 0.68 | $ 1.58 | $ 2.68 |
Discontinued operations | 0 | 0 | 0 | 0.01 |
Total (Note 11) | $ 0.49 | $ 0.68 | $ 1.58 | $ 2.69 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash Flows from Operating Activities: | ||
Net income | $ 161,059 | $ 247,240 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 160,739 | 157,523 |
Unit-based compensation expense | 4,820 | 0 |
Amortization of debt related items | 5,762 | 6,693 |
Gain from sale or disposition of assets | (14) | (1,632) |
Gain associated with the Linden Acquisition | 0 | (56,277) |
Deferred income tax expense | 2,989 | 626 |
Distributions of equity in earnings of joint venture | 0 | 2,500 |
Changes in current assets and current liabilities (Note 12) | (12,477) | 19,803 |
Other, net | (8,329) | (352) |
Net cash provided by operating activities | 314,549 | 376,124 |
Cash Flows from Investing Activities: | ||
Capital expenditures | (145,414) | (240,671) |
Change in accounts payable related to capital expenditures | (15,504) | (7,802) |
Acquisitions | 0 | (142,500) |
Investment in other long-term assets | 0 | (3,587) |
Proceeds from sale or disposition of assets | 0 | 17,125 |
Net cash used in investing activities | (160,918) | (377,435) |
Cash Flows from Financing Activities: | ||
Proceeds from long-term debt borrowings | 523,982 | 747,779 |
Proceeds from short-term debt borrowings | 462,000 | 622,000 |
Long-term debt repayments | (410,750) | (365,410) |
Short-term debt repayments | (539,000) | (657,000) |
Proceeds from issuance of common units, net of issuance costs | 27,710 | 0 |
Contributions from general partner | 575 | 0 |
Distributions to unitholders and general partner | (294,153) | (294,153) |
Decrease in cash book overdrafts | (12,181) | (12,281) |
Other, net | (1,418) | (792) |
Net cash (used in) provided by financing activities | (243,235) | 40,143 |
Effect of foreign exchange rate changes on cash | 3,404 | (10,319) |
Net (decrease) increase in cash and cash equivalents | (86,200) | 28,513 |
Cash and cash equivalents as of the beginning of the period | 118,862 | 87,912 |
Cash and cash equivalents as of the end of the period | $ 32,662 | $ 116,425 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | ORGANIZATION AND BASIS OF PRESENTATION Organization and Operations NuStar Energy L.P. (NYSE: NS) is a publicly held Delaware limited partnership engaged in the transportation of petroleum products and anhydrous ammonia, the terminalling and storage of petroleum products and the marketing of petroleum products. Unless otherwise indicated, the terms “NuStar Energy,” “NS,” “the Partnership,” “we,” “our” and “us” are used in this report to refer to NuStar Energy L.P., to one or more of our consolidated subsidiaries or to all of them taken as a whole. NuStar GP Holdings, LLC (NuStar GP Holdings or NSH) (NYSE: NSH) owns our general partner, Riverwalk Logistics, L.P., and owns an approximate 15% total interest in us as of September 30, 2016 . We conduct our operations through our subsidiaries, primarily NuStar Logistics, L.P. (NuStar Logistics) and NuStar Pipeline Operating Partnership L.P. (NuPOP). We have three business segments: pipeline, storage and fuels marketing. Recent Developments Employee Transfer from NuStar GP, LLC. On March 1, 2016, NuStar GP, LLC, the general partner of our general partner and a wholly owned subsidiary of NuStar GP Holdings, transferred and assigned to NuStar Services Company LLC (NuStar Services Co), a wholly owned subsidiary of NuStar Energy, all of NuStar GP, LLC’s employees and related benefit plans, programs, contracts and policies (the Employee Transfer). As a result of the Employee Transfer, we pay employee costs directly and sponsor the long-term incentive plan and other employee benefit plans. Please refer to Note 7 for a discussion of this transfer and our related party agreements, Note 8 for a discussion of our employee benefit plans and Note 9 for a discussion of our long-term incentive plan. Linden Acquisition. On January 2, 2015, we acquired full ownership of ST Linden Terminal, LLC (Linden), which owns a refined products terminal in Linden, NJ with 4.3 million barrels of storage capacity (the Linden Acquisition). Prior to the Linden Acquisition, Linden operated as a joint venture between us and Linden Holding Corp., with each party owning 50% . On the acquisition date, we remeasured our existing 50% equity investment in Linden to its fair value of $128.0 million and we recognized a gain of $56.3 million in “Other income (expense), net” in the condensed consolidated statements of comprehensive income for the nine months ended September 30, 2015 . Basis of Presentation These unaudited condensed consolidated financial statements include the accounts of the Partnership and subsidiaries in which the Partnership has a controlling interest. Inter-partnership balances and transactions have been eliminated in consolidation. We account for investment in joint ventures using the equity method of accounting. These unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to the Quarterly Report on Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Act of 1934. Accordingly, they do not include all of the information and notes required by GAAP for complete consolidated financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included, and all disclosures are adequate. All such adjustments are of a normal recurring nature unless disclosed otherwise. Financial information for the three and nine months ended September 30, 2016 and 2015 included in these Condensed Notes to Consolidated Financial Statements is derived from our unaudited condensed consolidated financial statements. Operating results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 . The consolidated balance sheet as of December 31, 2015 has been derived from the audited consolidated financial statements as of that date. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2015 . Certain previously reported amounts in the 2015 consolidated financial statements and condensed notes have been reclassified to conform to 2016 presentation. |
NEW ACCOUNTING PRONCOUNCEMENTS
NEW ACCOUNTING PRONCOUNCEMENTS | 9 Months Ended |
Sep. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | NEW ACCOUNTING PRONOUNCEMENTS Statement of Cash Flows In August 2016, the Financial Accounting Standards Board (FASB) issued amended guidance that clarifies how entities should present certain cash receipts and cash payments on the statement of cash flows, including but not limited to debt prepayment or debt extinguishment costs; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims and distributions received from equity method investees. The changes are effective for annual and interim periods beginning after December 15, 2017, and amendments should be applied retrospectively. We will adopt these provisions January 1, 2018, and we do not expect the guidance to have a material impact on our statements of cash flows or disclosures. Credit Losses In June 2016, the FASB issued amended guidance that requires the use of a “current expected loss” model for financial assets measured at amortized cost and certain off-balance sheet credit exposures. Under this model, entities will be required to estimate the lifetime expected credit losses on such instruments based on historical experience, current conditions, and reasonable and supportable forecasts. This amended guidance also expands the disclosure requirements to enable users of financial statements to understand an entity’s assumptions, models and methods for estimating expected credit losses. The changes are effective for annual and interim periods beginning after December 15, 2019, and amendments should be applied using a modified retrospective approach. We are currently assessing the impact of this amended guidance on our financial position, results of operations and disclosures. Unit-Based Payments In March 2016, the FASB issued amended guidance that simplifies certain aspects of accounting for unit-based payments to employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The changes are effective for annual and interim periods beginning after December 15, 2016, and early adoption is permitted. Prior to the Employee Transfer discussed in Note 1 above, we did not sponsor a unit-based compensation plan. Upon completion of the Employee Transfer, we adopted this amended guidance effective January 1, 2016 on a prospective basis, which did not have a material impact on our financial position, results of operations or disclosures. Please refer to Note 9 for a discussion of our long-term incentive plan. Leases In February 2016, the FASB issued amended guidance that requires lessees to recognize the assets and liabilities that arise from most leases on the balance sheet. For lessors, this amended guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. The changes are effective for annual and interim periods beginning after December 15, 2018, and amendments should be applied using a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements, with the option to use certain expedients. We are currently assessing the impact of this amended guidance on our financial position, results of operations and disclosures. Financial Instruments In January 2016, the FASB issued new guidance that addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The changes are effective for annual and interim periods beginning after December 15, 2017, and amendments should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. We will adopt these provisions January 1, 2018, and we do not expect the guidance to have a material impact on our financial position, results of operations or disclosures. Inventory In July 2015, the FASB issued amended guidance that requires inventory to be measured at the lower of cost or net realizable value. The changes are effective for annual and interim periods beginning after December 15, 2016, and must be applied prospectively after the date of adoption. We will adopt these provisions January 1, 2017, and we do not expect the amended guidance to have a material impact on our financial position, results of operations or disclosures. Debt Issuance Costs In April 2015, the FASB issued amended guidance for the presentation of debt issuance costs. Under the amended guidance, debt issuance costs will be presented on the balance sheet as a deduction from the carrying value of the associated debt liability. In August 2015, the FASB issued amended guidance that would allow debt issuance costs related to line-of-credit agreements to continue to be presented as an asset on the balance sheet. The changes are effective for annual and interim periods beginning after December 15, 2015, and retrospective application is required. On January 1, 2016, we retrospectively adopted this guidance. As a result, we reclassified $23.7 million of deferred debt issuance costs from “Other long-term assets, net” to “Long-term debt” on the consolidated balance sheet as of December 31, 2015. Revenue Recognition In May 2014, the FASB and the International Accounting Standards Board jointly issued a comprehensive new revenue recognition standard. In August 2015, the FASB deferred the effective date by one year. The standard is now effective for public entities for annual and interim periods beginning after December 15, 2017, using one of two retrospective transition methods. Early adoption is permitted, but not before the original effective date. The FASB has subsequently issued several updates that amend and/or clarify the new revenue recognition standard. We are continuing to assess the impact of this new guidance on our financial position, results of operations and disclosures. However, based on our initial assessment, we do not believe the standard will significantly impact the amount or timing of revenues recognized under the vast majority of our revenue contracts. |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Revolving Credit Agreement During the nine months ended September 30, 2016 , the balance under our $1.5 billion five -year revolving credit agreement (the Revolving Credit Agreement) increased by $109.6 million , which we used for general partnership purposes and to fund our capital expenditures. The Revolving Credit Agreement matures on October 29, 2019 and bears interest, at our option, based on an alternative base rate, a LIBOR-based rate or a EURIBOR-based rate. The interest rate on the Revolving Credit Agreement is subject to adjustment if our debt rating is downgraded (or upgraded) by certain credit rating agencies. As of September 30, 2016 , our weighted-average interest rate related to borrowings under the Revolving Credit Agreement was 2.3% , and we had $992.2 million outstanding. As of September 30, 2016 , our consolidated debt coverage ratio (as defined in the Revolving Credit Agreement) could not exceed 5.00-to-1.00 . The requirement not to exceed a maximum consolidated debt coverage ratio may limit the amount we can borrow under the Revolving Credit Agreement to an amount less than the total amount available for borrowing. As of September 30, 2016 , letters of credit issued under the Revolving Credit Agreement totaled $15.8 million , and we had $491.9 million available for borrowing. Our management believes that we are in compliance with the covenants in the Revolving Credit Agreement as of September 30, 2016 . Gulf Opportunity Zone Revenue Bonds In 2008, 2010 and 2011, the Parish of St. James, Louisiana issued, pursuant to the Gulf Opportunity Zone Act of 2005, an aggregate $365.4 million of tax-exempt revenue bonds (the GoZone Bonds) associated with our St. James, Louisiana terminal expansions. The GoZone Bonds bear interest based on a weekly tax-exempt bond market interest rate, and interest is paid monthly. The weighted-average interest rate was 0.9% as of September 30, 2016 . Following the issuances, the proceeds were deposited with a trustee and are disbursed to us upon our request for reimbursement of expenditures related to our St. James terminal expansions. We include the amount remaining in trust in “Other long-term assets, net,” and we include the amount of bonds issued in “Long-term debt” on the consolidated balance sheets. For the nine months ended September 30, 2016 and 2015 , the amount received from the trustee totaled $12.0 million and $13.6 million , respectively. As of September 30, 2016 , the amount remaining in trust totaled $42.8 million . Receivables Financing Agreement NuStar Energy and NuStar Finance LLC (NuStar Finance), a special purpose entity and wholly owned subsidiary of NuStar Energy, are parties to a $125.0 million receivables financing agreement with third-party lenders (the Receivables Financing Agreement) and agreements with certain of NuStar Energy’s wholly owned subsidiaries (collectively with the Receivables Financing Agreement, the Securitization Program). NuStar Finance’s sole business consists of purchasing receivables from certain of NuStar Energy’s wholly owned subsidiaries and providing these receivables as collateral under the Securitization Program. NuStar Finance is a separate legal entity and the assets of NuStar Finance, including these accounts receivable, are not available to satisfy the claims of creditors of NuStar Energy, its subsidiaries selling receivables under the Securitization Program or their affiliates. The amount available for borrowing is based on the availability of eligible receivables and other customary factors and conditions. Borrowings by NuStar Finance under the Receivables Financing Agreement bear interest at either the applicable commercial paper rate or the applicable bank rate, each as defined under the Receivables Financing Agreement. The Securitization Program has an initial termination date of June 15, 2018, with the option to renew for additional 364-day periods thereafter. As of September 30, 2016 , $102.5 million of our accounts receivable are included in the Securitization Program. The amount of borrowings outstanding under the Receivables Financing Agreement totaled $43.2 million as of September 30, 2016 , which is included in “Long-term debt” on the consolidated balance sheet. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Contingencies We have contingent liabilities resulting from various litigation, claims and commitments. We record accruals for loss contingencies when losses are considered probable and can be reasonably estimated. Legal fees associated with defending the Partnership in legal matters are expensed as incurred. We have accrued $0.5 million and $4.8 million for contingent losses as of September 30, 2016 and December 31, 2015 , respectively. The amount that will ultimately be paid may differ from the recorded accruals, and the timing of such payments is uncertain. In addition, due to the inherent uncertainty of litigation, there can be no assurance that the resolution of any particular claim or proceeding would not have a material adverse effect on our results of operations, financial position or liquidity. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS We segregate the inputs used in measuring fair value into three levels: Level 1, defined as observable inputs such as quoted prices for identical assets or liabilities in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in markets that are not active; and Level 3, defined as unobservable inputs for which little or no market data exists. We consider counterparty credit risk and our own credit risk in the determination of all estimated fair values. Recurring Fair Value Measurements The following assets and liabilities are measured at fair value on a recurring basis: September 30, 2016 Level 1 Level 2 Level 3 Total (Thousands of Dollars) Assets: Other current assets: Product imbalances $ 1,008 $ — $ — $ 1,008 Commodity derivatives — 704 — 704 Total $ 1,008 $ 704 $ — $ 1,712 Liabilities: Accrued liabilities: Product imbalances $ (1,344 ) $ — $ — $ (1,344 ) Commodity derivatives (301 ) (701 ) — (1,002 ) Other long-term liabilities: Guarantee liability — — (1,736 ) (1,736 ) Interest rate swaps — (50,910 ) — (50,910 ) Total $ (1,645 ) $ (51,611 ) $ (1,736 ) $ (54,992 ) December 31, 2015 Level 1 Level 2 Level 3 Total (Thousands of Dollars) Assets: Other current assets: Product imbalances $ 179 $ — $ — $ 179 Commodity derivatives 11,325 77 — 11,402 Other long-term assets, net: Interest rate swaps — 2,755 — 2,755 Total $ 11,504 $ 2,832 $ — $ 14,336 Liabilities: Accrued liabilities: Product imbalances $ (419 ) $ — $ — $ (419 ) Commodity derivatives — (120 ) — (120 ) Other long-term liabilities: Guarantee liability — — (1,697 ) (1,697 ) Interest rate swaps — (1,452 ) — (1,452 ) Total $ (419 ) $ (1,572 ) $ (1,697 ) $ (3,688 ) Product Imbalances. Since we value our assets and liabilities related to product imbalances using quoted market prices in active markets as of the reporting date, we include these product imbalances in Level 1 of the fair value hierarchy. Commodity Derivatives. We base the fair value of certain of our commodity derivative instruments on quoted prices on an exchange; accordingly, we include these items in Level 1 of the fair value hierarchy. We also have derivative instruments for which we determine fair value using industry pricing services and other observable inputs, such as quoted prices on an exchange for similar derivative instruments, and we include these derivative instruments in Level 2 of the fair value hierarchy. See Note 6 for a discussion of our derivative instruments. Interest Rate Swaps. Because we estimate the fair value of our forward-starting interest rate swaps using discounted cash flows, which use observable inputs such as time to maturity and market interest rates, we include these interest rate swaps in Level 2 of the fair value hierarchy. Guarantees. In 2014, we sold our remaining 50% ownership interest in NuStar Asphalt LLC, which then changed its name to Axeon Specialty Products LLC (Axeon). We provide credit support, such as guarantees, letters of credit and cash collateral, as applicable, of up to $125.0 million to Axeon. As of September 30, 2016 , we have provided $16.7 million in letters of credit on behalf of Axeon. As of September 30, 2016 and December 31, 2015 , we provided guarantees mainly for commodity purchases, lease obligations and certain utilities for Axeon with an aggregate maximum potential exposure of $75.5 million and $71.9 million , respectively, and one guarantee that does not specify a maximum amount as of September 30, 2016 . As of December 31, 2015 , we provided two guarantees that did not specify a maximum amount. A majority of these guarantees have no expiration date. We estimated the fair value considering the probability of default by Axeon and an estimate of the amount we would be obligated to pay under the guarantees at the time of default based on the guarantees outstanding as of September 30, 2016 and December 31, 2015 . Our estimate of the fair value is based on significant inputs not observable in the market and thus falls within Level 3 of the fair value hierarchy. The following table summarizes the activity in our Level 3 liabilities: Nine Months Ended September 30, 2016 (Thousands of Dollars) Beginning balance $ 1,697 Adjustments to guarantee liability 39 Ending balance $ 1,736 Fair Value of Financial Instruments We recognize cash equivalents, receivables, payables and debt in our consolidated balance sheets at their carrying amounts. The fair values of these financial instruments, except for a $190.0 million term loan to Axeon (the Axeon Term Loan) and long-term debt, approximate their carrying amounts. The estimated fair values and carrying amounts of the long-term debt and the Axeon Term Loan were as follows: September 30, 2016 December 31, 2015 Fair Value Carrying Amount Fair Value Carrying Amount (Thousands of Dollars) Long-term debt $ 3,214,845 $ 3,153,049 $ 2,929,438 $ 3,055,612 Axeon Term Loan $ 175,717 $ 170,391 $ 172,123 $ 170,352 We estimated the fair value of our publicly traded senior notes based upon quoted prices in active markets; therefore, we determined that the fair value of our publicly traded senior notes falls in Level 1 of the fair value hierarchy. For our other debt, for which a quoted market price is not available, we estimated the fair value using a discounted cash flow analysis using current incremental borrowing rates for similar types of borrowing arrangements and determined that the fair value falls in Level 2 of the fair value hierarchy. We estimated the fair value of the Axeon Term Loan using discounted cash flows, which use observable inputs such as time to maturity and market interest rates, and determined that the fair value falls in Level 2 of the fair value hierarchy. As of September 30, 2016 , the carrying amount of the Axeon Term Loan is $170.4 million , consisting of the following: (i) the outstanding principal amount from the Axeon Term Loan of $190.0 million ; (ii) plus the fair value of guarantees of $1.7 million as of September 30, 2016 ; (iii) less equity losses from our investment in Axeon of $21.3 million incurred prior to the 2014 sale of our remaining ownership interest in Axeon and after the carrying value of our equity investment in Axeon was reduced to zero . The carrying value of the Axeon Term Loan is included in “Other long-term assets, net” on the consolidated balance sheets. We review the financial information of Axeon monthly for possible credit loss indicators. In 2015 and 2014, Axeon failed to make two scheduled principal payments, which, under the provisions of the Axeon Term Loan, increases the interest rate payable by Axeon until Axeon makes those outstanding payments. |
DERIVATIVES AND RISK MANAGEMENT
DERIVATIVES AND RISK MANAGEMENT ACTIVITIES | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND RISK MANAGEMENT ACTIVITIES | DERIVATIVES AND RISK MANAGEMENT ACTIVITIES We utilize various derivative instruments to manage our exposure to interest rate risk and commodity price risk. Our risk management policies and procedures are designed to monitor interest rates, futures and swap positions and over-the-counter positions, as well as physical commodity volumes, grades, locations and delivery schedules, to help ensure that our hedging activities address our market risks. Interest Rate Risk We are a party to certain interest rate swap agreements to manage our exposure to changes in interest rates, which include forward-starting interest rate swap agreements related to forecasted debt issuances in 2018 and 2020. We entered into these swaps in order to hedge the risk of changes in the interest payments attributable to changes in the benchmark interest rate during the period from the effective date of the swap to the issuance of the forecasted debt. Under the terms of the swaps, we pay a fixed rate and receive a rate based on three-month USD LIBOR . These swaps qualified, and we designated them, as cash flow hedges. We record the effective portion of mark-to-market adjustments as a component of “Accumulated other comprehensive income (loss)” (AOCI), and the amount in AOCI will be recognized in “Interest expense, net” as the forecasted interest payments occur or if the interest payments are probable not to occur. As of September 30, 2016 and December 31, 2015 , the aggregate notional amount of forward-starting interest rate swaps totaled $600.0 million . Commodity Price Risk We are exposed to market risks related to the volatility of crude oil and refined product prices. In order to reduce the risk of commodity price fluctuations with respect to our crude oil and finished product inventories and related firm commitments to purchase and/or sell such inventories, we utilize commodity futures and swap contracts, which qualify and we designate as fair value hedges. Derivatives that are intended to hedge our commodity price risk, but fail to qualify as fair value or cash flow hedges, are considered economic hedges, and we record associated gains and losses in net income. Our risk management committee oversees our trading controls and procedures and certain aspects of commodity and trading risk management. Our risk management committee also reviews all new commodity and trading risk management strategies in accordance with our risk management policy, as approved by our board of directors. The volume of commodity contracts is based on open derivative positions and represents the combined volume of our long and short open positions on an absolute basis, which totaled 5.9 million b arrels and 8.0 million barrels as of September 30, 2016 and December 31, 2015 , respectively. As of September 30, 2016 , we had $1.5 million of margin deposits; we had no margin deposits as of December 31, 2015 . The fair values of our derivative instruments included in our consolidated balance sheets were as follows: Asset Derivatives Liability Derivatives Balance Sheet Location September 30, December 31, September 30, December 31, (Thousands of Dollars) Derivatives Designated as Hedging Instruments: Commodity contracts Other current assets $ — $ 1,937 $ — $ (23 ) Interest rate swaps Other long-term assets, net — 2,755 — — Commodity contracts Accrued liabilities 280 — (2,543 ) — Interest rate swaps Other long-term liabilities — — (50,910 ) (1,452 ) Total 280 4,692 (53,453 ) (1,475 ) Derivatives Not Designated as Hedging Instruments: Commodity contracts Other current assets 704 34,016 — (24,528 ) Commodity contracts Accrued liabilities 7,034 117 (5,773 ) (237 ) Total 7,738 34,133 (5,773 ) (24,765 ) Total Derivatives $ 8,018 $ 38,825 $ (59,226 ) $ (26,240 ) Certain of our derivative instruments are eligible for offset in the consolidated balance sheets and subject to master netting arrangements. Under our master netting arrangements, there is a legally enforceable right to offset amounts, and we intend to settle such amounts on a net basis. The following are the net amounts presented on the consolidated balance sheets: Commodity Contracts September 30, December 31, (Thousands of Dollars) Net amounts of assets presented in the consolidated balance sheets $ 704 $ 11,402 Net amounts of liabilities presented in the consolidated balance sheets $ (1,002 ) $ (120 ) We recognize the impact of our commodity contracts on earnings in “Cost of product sales” on the condensed consolidated statements of comprehensive income, and that impact was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (Thousands of Dollars) Derivatives Designated as Fair Value Hedging Instruments: Gain (loss) recognized in income on derivative $ 558 $ 16,005 $ (6,246 ) $ 11,506 Gain (loss) recognized in income on hedged item 329 (15,479 ) 10,134 (8,748 ) Gain recognized in income for ineffective portion 887 526 3,888 2,758 Derivatives Not Designated as Hedging Instruments: (Loss) gain recognized in income on derivative $ (153 ) $ 1,151 $ (157 ) $ 1,142 Our interest rate swaps also had the following impact on earnings: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (Thousands of Dollars) Derivatives Designated as Cash Flow Hedging Instruments: (Loss) gain recognized in other comprehensive income on derivative (effective portion) $ (2,035 ) $ (16,757 ) $ (52,213 ) $ 1,996 Loss reclassified from AOCI into interest expense, net (effective portion) $ (2,011 ) $ (2,405 ) $ (6,391 ) $ (7,449 ) As of September 30, 2016 , we expect to reclassify a loss of $7.1 million to “Interest expense, net” within the next twelve months associated with unwound forward-starting interest rate swaps. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS GP Services Agreement. Prior to the Employee Transfer, our operations were managed by NuStar GP, LLC under a services agreement effective January 1, 2008 pursuant to which employees of NuStar GP, LLC performed services for our U.S. operations. Employees of NuStar GP, LLC provided services to us and NuStar GP Holdings; therefore, we reimbursed NuStar GP, LLC for all employee costs incurred prior to the Employee Transfer, other than the expenses allocated to NuStar GP Holdings, as summarized below: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (Thousands of Dollars) Operating expenses $ — $ 34,904 $ 21,681 $ 100,761 General and administrative expenses $ — $ 15,144 $ 10,493 $ 50,237 In conjunction with the Employee Transfer, we entered into an Amended and Restated Services Agreement with NuStar GP, LLC, effective March 1, 2016 (the Amended GP Services Agreement). The Amended GP Services Agreement provides that we will furnish administrative services necessary to conduct the business of NuStar GP Holdings. NuStar GP Holdings will compensate us for these services through an annual fee of $1.0 million, subject to adjustment based on the annual merit increase percentage applicable to our employees for the most recently completed fiscal year and for changes in level of service. The Amended GP Services Agreement will terminate on March 1, 2020 and will automatically renew for successive two-year terms, unless terminated by either party. Assignment and Assumption Agreement. Also on March 1, 2016 and in connection with the Employee Transfer, we entered into an Assignment and Assumption Agreement with NuStar GP, LLC (the Assignment Agreement). Under the Assignment Agreement, NuStar GP, LLC assigned all of its employee benefit plans, programs, contracts, policies, and various of its other agreements and contracts with certain employees, affiliates and third-party service providers (collectively, the Assigned Programs) to NuStar Services Co. In addition, NuStar Services Co agreed to assume the sponsorship of and all obligations relating to the ongoing maintenance and administration of each of the plans and agreements in the Assigned Programs. The following table summarizes the related party transactions and changes to amounts reported on our consolidated balance sheet as a result of the Employee Transfer on March 1, 2016 (thousands of dollars): Decrease in related party payable: Current $ 16,014 Long-term 32,656 Decrease in related party payable $ 48,670 Changes to our consolidated balance sheet: Current and long-term assets $ 2,154 Current liabilities 5,609 Other long-term liabilities 34,042 Limited partner’s equity 2,664 Accumulated other comprehensive loss 4,201 Changes to our consolidated balance sheet $ 48,670 Balance Sheet Items. We had a receivable from related party of $0.1 million as of September 30, 2016 , mainly comprised of service fees and expenses paid on behalf of NuStar GP Holdings. As of December 31, 2015 , we had a payable to related party of $14.8 million , mainly comprised of payroll, employee benefit plan expenses and unit-based compensation prior to the Employee Transfer, and none as of September 30, 2016 . We also had a long-term payable to related party as of December 31, 2015 of $32.1 million , representing long-term employee benefits prior to the Employee Transfer, and none as of September 30, 2016 . |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 9 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Prior to the Employee Transfer, NuStar GP, LLC sponsored and maintained the defined benefit plans and defined contribution plans described below. Effective March 1, 2016, in connection with the Employee Transfer, we assumed sponsorship and responsibility for these defined benefit plans and defined contribution plans, which include both qualified and nonqualified plans. The Employee Transfer did not have an impact on the benefits received by our employees. Defined Benefit Plans NuStar Pension Plan. The NuStar Pension Plan (the Pension Plan) is a qualified non-contributory defined benefit pension plan that provides eligible U.S. employees with retirement income as calculated under a cash balance formula. Under the cash balance formula, benefits are based on age, service and interest credits, and employees become fully vested in their benefits upon attaining three years of vesting service. NuStar Excess Pension Plan. The NuStar Excess Pension Plan (the Excess Pension Plan) is a nonqualified deferred compensation plan that provides benefits to a select group of management or other highly compensated employees. The Excess Pension Plan is not intended to constitute either a qualified plan under the provisions of Section 401 of the Internal Revenue Code of 1986, as amended (the Code), or a funded plan subject to the Employee Retirement Income Security Act of 1974, as amended (ERISA). The Pension Plan and Excess Pension Plan are collectively referred to as the Pension Plans. Other Postretirement Benefits. We also sponsor a contributory medical benefits plan for U.S. employees that retired prior to April 1, 2014. For employees that retire on or after April 1, 2014, we provide partial reimbursement for eligible third-party health care premiums. We estimate pension and other postretirement benefit obligations and costs from actuarial valuations. The actuarial valuations require the use of certain assumptions, including discount rates, expected long-term rates of return on plan assets and expected rates of compensation increase. The amortization of actuarial gains and losses reflects a corridor based on 10% of the greater of the projected benefit obligation or the market-related value of the pension plan assets. The annual measurement date for our pension and other postretirement benefit plans is December 31, and we recognize the overfunded or underfunded status of our defined benefit pension or other postretirement benefit plans as an asset or a liability as of the balance sheet dates. We record changes in the funded status of our plans as a component of comprehensive income in the year the changes occur. The reconciliation of funded status for the Pension Plans and other postretirement benefit plans as of December 31, 2015 was as follows: Pension Plans Other Postretirement Benefits (Thousands of Dollars) Fair value of plan assets $ 87,706 $ — Less: Benefit obligation 109,202 10,042 Funded status $ (21,496 ) $ (10,042 ) On March 1, 2016, and in conjunction with the Employee Transfer, we assumed $22.5 million and $10.2 million in benefit obligations associated with the Pension Plans and other postretirement benefits, respectively. Prior to the Employee Transfer, we reimbursed all costs incurred by NuStar GP, LLC related to these employee benefit plans at cost. The following table summarizes the components of net periodic benefit costs for the Pension Plans and other postretirement benefits on a combined basis for periods prior to the Employee Transfer and after the Employee Transfer: Pension Plans Other Postretirement Benefits 2016 2015 2016 2015 (Thousands of Dollars) For the three months ended September 30: Service cost $ 1,926 $ 1,919 $ 105 $ 118 Interest cost 1,006 1,097 100 111 Expected return on assets (1,353 ) (1,254 ) — — Amortization of prior service credit (516 ) (516 ) (286 ) (285 ) Amortization of net loss 273 461 45 67 Net periodic benefit cost (income) $ 1,336 $ 1,707 $ (36 ) $ 11 For the nine months ended September 30: Service cost $ 5,778 $ 5,757 $ 315 $ 354 Interest cost 3,018 3,291 300 334 Expected return on assets (4,056 ) (3,762 ) — — Amortization of prior service credit (1,549 ) (1,547 ) (858 ) (857 ) Amortization of net loss 819 1,383 135 201 Net periodic benefit cost (income) $ 4,010 $ 5,122 $ (108 ) $ 32 In August 2016, we contributed $15.6 million to the Pension Plans. Defined Contribution Plans NuStar Thrift Plan. The NuStar Thrift Plan (the Thrift Plan) is a qualified defined contribution plan and participation in the Thrift Plan is voluntary and open to substantially all our employees upon their date of hire. Thrift Plan participants can contribute from 1% up to 30% of their total annual compensation to the Thrift Plan in the form of pre-tax and/or after tax employee contributions. We make matching contributions in an amount equal to 100% of each participant’s employee contributions up to a maximum of 6% of the participant’s total annual compensation. NuStar Excess Thrift Plan. The NuStar Excess Thrift Plan (the Excess Thrift Plan) is a nonqualified deferred compensation plan that provides benefits to those employees whose compensation and/or annual contributions under the Thrift Plan are subject to the limitations applicable to qualified retirement plans under the Code. The Excess Thrift Plan is not intended to constitute either a qualified plan under the provisions of Section 401 of the Code or a funded plan subject to ERISA. We also sponsor several other defined contribution plans for certain international employees located in Canada, the Netherlands and the United Kingdom. |
UNIT-BASED COMPENSATION
UNIT-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
UNIT-BASED COMPENSATION | UNIT-BASED COMPENSATION Overview On January 28, 2016, our unitholders approved the Fifth Amended and Restated 2000 Long-Term Incentive Plan (the Amended 2000 LTIP) which, among other items, provides that we may use newly issued units from NuStar Energy to satisfy unit awards and extends the term of the Amended 2000 LTIP to January 28, 2026. Prior to the Employee Transfer, NuStar GP, LLC sponsored the Amended 2000 LTIP, and we reimbursed NuStar GP, LLC for awards under this plan. Upon the approval of the Amended 2000 LTIP, along with the Employee Transfer, most of our currently outstanding awards are now equity-classified awards. Effective March 1, 2016, we assumed sponsorship of the Amended 2000 LTIP, which provides the Compensation Committee of the Board of Directors of NuStar GP, LLC (the Compensation Committee) with the right to issue and award up to 3,250,000 of our common units to employees and non-employee directors. Awards available under the Amended 2000 LTIP include restricted units, performance units, unit options, unit awards and distribution equivalent rights (DER). The Compensation Committee may also include a tandem grant of a DER that will entitle the participant to receive cash equal to cash distributions made on any award prior to its vesting. As of March 1, 2016, common units that remained available to be awarded under the Amended 2000 LTIP totaled 1,200,261 . On March 1, 2016, we assumed all outstanding awards under the Amended 2000 LTIP, which represented 688,647 units. The transfer of the outstanding awards qualifies as a plan modification. Therefore, we measured the fair value of the outstanding awards based on the unit price on the transfer date. Our significant unit-based compensation awards are discussed below. Restricted Units We account for restricted units expected to result in the issuance of our common units upon vesting as equity-classified awards. These restricted units are mainly granted to domestic employees and non-employee directors and represented 604,153 units on the Employee Transfer date. The outstanding restricted units granted to domestic employees generally vest over five years beginning one year after the grant date. The fair value of a restricted unit award for domestic employees is measured at the transfer date or grant date. Restricted units granted to non-employee directors generally vest over three years and the fair value of such award is measured at each reporting period. DERs paid with respect to outstanding, unvested restricted units reduce partners’ equity, similar to cash distributions to unitholders. We record compensation expense ratably over the vesting period based on the fair value of the units at the grant date (for domestic employees) or the fair value of the units measured at each reporting period (for non-employee directors). The outstanding restricted units granted to international employees are cash-settled and accounted for as liability-classified awards. These restricted units represented 49,121 units on the Employee Transfer date and vest over three to five years. We record compensation expense over the requisite service or vesting period based on the fair value of the award measured at each reporting period. The liability for restricted units granted to international employees is included in “Accrued liabilities” on our consolidated balance sheets. Performance Units Performance units are equity-classified awards issued to certain of our key employees and represent rights to receive our common units upon achieving an objective performance measure for the performance period. The objective performance measure is determined each year by the NuStar GP, LLC Compensation Committee for the following year. Our achievement of the performance measure determines the rate at which the performance units convert into our common units, which can range from zero to 200%. The performance units represented 35,373 units on the Employee Transfer date. Performance units vest in three annual increments (tranches), based upon our achievement of the performance measure set by the Compensation Committee during the one-year performance periods that end on December 31 of each year following the date of grant. Therefore, performance units are not considered granted until the Compensation Committee has set the performance measure for each tranche of awards. The fair value of our performance units is equal to the grant date fair value reduced by expected distributions over the vesting period as these awards do not receive DERs. We record compensation expense ratably for each vesting tranche over its requisite service period (one year) if it is probable that the specified performance measure will be achieved. Additionally, changes in the actual or estimated outcomes that affect the quantity of performance units expected to be converted are recognized as a cumulative adjustment. We include compensation expense for the outstanding restricted units and performance units in “General and administrative expenses” on the condensed consolidated statements of comprehensive income. |
PARTNERS' EQUITY
PARTNERS' EQUITY | 9 Months Ended |
Sep. 30, 2016 | |
Partners' Capital Notes [Abstract] | |
PARTNERS' EQUITY | PARTNERS’ EQUITY Issuance of Common Units During the nine months ended September 30, 2016 , we issued 595,050 common units representing limited partner interests at an average price of $47.39 per unit for proceeds of $28.3 million , net of $0.5 million of issuance costs. We used these proceeds, which includes a contribution of $0.6 million from our general partner to maintain its 2% general partner interest, for general partnership purposes, including repayments of outstanding borrowings under our Revolving Credit Agreement. Partners’ Equity Activity The following table summarizes changes to our partners’ equity (in thousands of dollars): Balance as of January 1, 2016 $ 1,609,844 Net income 161,059 Unit-based compensation expense 5,564 Other comprehensive loss (40,606 ) Cash distributions to partners (294,153 ) Issuance of common units, including contribution from general partner 28,285 Balance as of September 30, 2016 $ 1,469,993 Accumulated Other Comprehensive Income (Loss) The balance of and changes in the components included in AOCI were as follows: Foreign Currency Translation Cash Flow Hedges Pension and Other Postretirement Benefits Total (Thousands of Dollars) Balance as of January 1, 2016 $ (60,826 ) $ (27,968 ) $ — $ (88,794 ) Other comprehensive income (loss): Employee Transfer — — 4,201 4,201 Deferred income tax adjustments — — 2,414 2,414 Other comprehensive loss before reclassification adjustments (270 ) (52,213 ) — (52,483 ) Net gain on pension costs reclassified into operating expense — — (839 ) (839 ) Net gain on pension costs reclassified into general and administrative expense — — (290 ) (290 ) Net loss on cash flow hedges reclassified into interest expense, net — 6,391 — 6,391 Other comprehensive (loss) income (270 ) (45,822 ) 5,486 (40,606 ) Balance as of September 30, 2016 $ (61,096 ) $ (73,790 ) $ 5,486 $ (129,400 ) Allocations of Net Income General Partner. Our partnership agreement, as amended, sets forth the calculation to be used to determine the amount and priority of cash distributions that the limited partner unitholders and the general partner will receive. The partnership agreement also contains provisions for the allocation of net income and loss to the unitholders and the general partner. For purposes of maintaining partner capital accounts, the partnership agreement specifies that items of income and loss shall be allocated among the partners in accordance with their respective percentage interests. Normal allocations according to percentage interests are made after giving effect to priority income allocations, if any, in an amount equal to incentive cash distributions allocated 100% to the general partner. The following table details the calculation of net income applicable to the general partner: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (Thousands of Dollars) Net income applicable to general partner and limited partners’ interest $ 51,141 $ 65,016 $ 161,059 $ 247,240 Less general partner incentive distribution 10,890 10,805 32,500 32,415 Net income after general partner incentive distribution 40,251 54,211 128,559 214,825 General partner interest 2 % 2 % 2 % 2 % General partner allocation of net income after general partner incentive distribution 805 1,084 2,571 4,297 General partner incentive distribution 10,890 10,805 32,500 32,415 Net income applicable to general partner $ 11,695 $ 11,889 $ 35,071 $ 36,712 Cash Distributions The following table reflects the allocation of total cash distributions to the general and limited partners applicable to the period in which the distributions were earned: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (Thousands of Dollars, Except Per Unit Data) General partner interest $ 1,976 $ 1,961 $ 5,898 $ 5,883 General partner incentive distribution 10,890 10,805 32,500 32,415 Total general partner distribution 12,866 12,766 38,398 38,298 Limited partners’ distribution 85,943 85,285 256,513 255,855 Total cash distributions $ 98,809 $ 98,051 $ 294,911 $ 294,153 Cash distributions per unit applicable to limited partners $ 1.095 $ 1.095 $ 3.285 $ 3.285 The following table summarizes information related to our quarterly cash distributions: Quarter Ended Cash Distributions Per Unit Total Cash Distributions Record Date Payment Date (Thousands of Dollars) September 30, 2016 (a) $ 1.095 $ 98,809 November 8, 2016 November 14, 2016 June 30, 2016 $ 1.095 $ 98,051 August 9, 2016 August 12, 2016 March 31, 2016 $ 1.095 $ 98,051 May 9, 2016 May 13, 2016 December 31, 2015 $ 1.095 $ 98,051 February 8, 2016 February 12, 2016 (a) The distribution was announced on October 28, 2016 . |
NET INCOME PER UNIT
NET INCOME PER UNIT | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
NET INCOME PER UNIT | NET INCOME PER UNIT Basic and diluted net income per unit is determined pursuant to the two-class method. Under this method, all earnings are allocated to our limited partner unitholders and participating securities based on their respective rights to receive distributions earned during the period. Participating securities include our general partner interest, including incentive distribution rights, and restricted units awarded under our Amended 2000 LTIP. Basic net income per unit is computed by dividing net income attributable to our limited partner unitholders by the weighted-average number of limited partner units outstanding during the period. Diluted net income per unit is computed by dividing net income attributable to our limited partner unitholders by the sum of (i) the weighted-average number of limited partner units outstanding during the period and (ii) the effect of dilutive potential limited partner units outstanding during the period. Dilutive potential limited partner units include contingently issuable performance units awarded under our Amended 2000 LTIP. The following table details the calculation of earnings per unit: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (Thousands of Dollars, Except Unit and Per Unit Data) Net income attributable to NuStar Energy L.P. $ 51,141 $ 65,016 $ 161,059 $ 247,240 Less: Distributions to general partner (including incentive distribution rights) 12,866 12,766 38,398 38,298 Less: Distributions to limited partner 85,943 85,285 256,513 255,855 Less: DERs to restricted units 650 — 1,969 — Distributions in excess of earnings $ (48,318 ) $ (33,035 ) $ (135,821 ) $ (46,913 ) Net income attributable to limited partner units: Distributions to limited partner $ 85,943 $ 85,285 $ 256,513 $ 255,855 Allocation of distributions in excess of earnings (47,351 ) (32,374 ) (133,103 ) (45,974 ) Total $ 38,592 $ 52,911 $ 123,410 $ 209,881 Basic weighted-average limited partner units outstanding 78,031,053 77,886,078 77,934,802 77,886,078 Diluted units outstanding: Basic weighted-average limited partner units outstanding 78,031,053 77,886,078 77,934,802 77,886,078 Effect of dilutive participating securities 31,836 — 46,497 — Diluted weighted-average limited partner units outstanding 78,062,889 77,886,078 77,981,299 77,886,078 Basic and diluted net income per unit applicable to limited partners $ 0.49 $ 0.68 $ 1.58 $ 2.69 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS | 9 Months Ended |
Sep. 30, 2016 | |
Statement of Cash Flows [Abstract] | |
STATEMENTS OF CASH FLOWS | STATEMENTS OF CASH FLOWS Changes in current assets and current liabilities were as follows: Nine Months Ended September 30, 2016 2015 (Thousands of Dollars) Decrease (increase) in current assets: Accounts receivable $ (15,200 ) $ 75,532 Inventories 3,767 1,654 Other current assets 4,809 1,660 Increase (decrease) in current liabilities: Accounts payable 7,706 (45,626 ) Payable to related party, net 806 743 Accrued interest payable (6,672 ) (5,424 ) Accrued liabilities (7,477 ) (12,338 ) Taxes other than income tax 3,670 3,239 Income tax payable (3,886 ) 363 Changes in current assets and current liabilities $ (12,477 ) $ 19,803 The above changes in current assets and current liabilities differ from changes between amounts reflected in the applicable consolidated balance sheets due to the change in the amount accrued for capital expenditures and the effect of foreign currency translation. In addition, see Note 7 for non-cash related party transactions associated with the Employee Transfer. Cash flows related to interest and income taxes were as follows: Nine Months Ended September 30, 2016 2015 (Thousands of Dollars) Cash paid for interest, net of amount capitalized $ 112,796 $ 105,340 Cash paid for income taxes, net of tax refunds received $ 9,873 $ 8,987 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Our reportable business segments consist of pipeline, storage and fuels marketing. Our segments represent strategic business units that offer different services and products. We evaluate the performance of each segment based on its respective operating income, before general and administrative expenses and certain non-segmental depreciation and amortization expense. General and administrative expenses are not allocated to the operating segments since those expenses relate primarily to the overall management at the entity level. Our principal operations include the transportation of petroleum products and anhydrous ammonia, the terminalling and storage of petroleum products and the marketing of petroleum products. Intersegment revenues result from storage agreements with wholly owned subsidiaries of NuStar Energy at rates consistent with the rates charged to third parties for storage. Results of operations for the reportable segments were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (Thousands of Dollars) Revenues: Pipeline $ 122,481 $ 131,395 $ 362,929 $ 378,030 Storage: Third parties 152,746 155,475 445,497 450,372 Intersegment 5,021 6,628 16,543 19,707 Total storage 157,767 162,103 462,040 470,079 Fuels marketing 166,191 206,696 476,499 790,719 Consolidation and intersegment eliminations (5,021 ) (6,628 ) (16,543 ) (19,707 ) Total revenues $ 441,418 $ 493,566 $ 1,284,925 $ 1,619,121 Operating income (loss): Pipeline $ 58,922 $ 68,536 $ 186,739 $ 201,996 Storage 58,420 59,986 166,496 161,715 Fuels marketing (337 ) (1,819 ) 282 10,756 Consolidation and intersegment eliminations (1 ) (1 ) — 41 Total segment operating income 117,004 126,702 353,517 374,508 General and administrative expenses 26,957 23,679 73,399 75,425 Other depreciation and amortization expense 2,093 2,029 6,382 6,403 Total operating income $ 87,954 $ 100,994 $ 273,736 $ 292,680 Total assets by reportable segment were as follows: September 30, December 31, (Thousands of Dollars) Pipeline $ 2,014,710 $ 2,014,098 Storage 2,462,597 2,476,389 Fuels marketing 143,438 156,866 Total segment assets 4,620,745 4,647,353 Other partnership assets 369,673 478,172 Total consolidated assets $ 4,990,418 $ 5,125,525 |
CONDENSED CONSOLIDATING FINANCI
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | 9 Months Ended |
Sep. 30, 2016 | |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS [Abstract] | |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | CONDENSED CONSOLIDATING FINANCIAL STATEMENTS NuStar Energy has no operations and its assets consist mainly of its investments in NuStar Logistics and NuPOP, both wholly owned subsidiaries. The senior and subordinated notes issued by NuStar Logistics are fully and unconditionally guaranteed by NuStar Energy and NuPOP. As a result, the following condensed consolidating financial statements are presented as an alternative to providing separate financial statements for NuStar Logistics and NuPOP. Condensed Consolidating Balance Sheets September 30, 2016 (Thousands of Dollars) NuStar Energy NuStar Logistics NuPOP Non-Guarantor Subsidiaries Eliminations Consolidated Assets Cash and cash equivalents $ 811 $ 3 $ — $ 31,848 $ — $ 32,662 Receivables, net — 257 — 159,804 — 160,061 Inventories — 2,285 3,514 29,252 — 35,051 Other current assets 107 13,749 1,496 10,880 (1 ) 26,231 Intercompany receivable — 1,495,783 — 120,677 (1,616,460 ) — Total current assets 918 1,512,077 5,010 352,461 (1,616,461 ) 254,005 Property, plant and equipment, net — 1,892,540 591,145 1,189,204 — 3,672,889 Intangible assets, net — 43,830 — 57,800 — 101,630 Goodwill — 149,453 170,652 376,532 — 696,637 Investment in wholly owned subsidiaries 2,073,996 43,185 1,281,325 899,317 (4,297,823 ) — Deferred income tax asset — — — 2,186 — 2,186 Other long-term assets, net 1,273 222,491 26,329 12,978 — 263,071 Total assets $ 2,076,187 $ 3,863,576 $ 2,074,461 $ 2,890,478 $ (5,914,284 ) $ 4,990,418 Liabilities and Partners’ Equity Payables $ 29 $ 19,939 $ 12,456 $ 72,887 $ — $ 105,311 Short-term debt — 7,000 — — — 7,000 Accrued interest payable — 27,597 — 17 — 27,614 Accrued liabilities 683 7,930 9,528 34,379 — 52,520 Taxes other than income tax 62 6,976 4,604 4,979 — 16,621 Income tax payable — 540 — 1,525 (1 ) 2,064 Intercompany payable 476,020 — 1,140,440 — (1,616,460 ) — Total current liabilities 476,794 69,982 1,167,028 113,787 (1,616,461 ) 211,130 Long-term debt — 3,110,288 — 42,761 — 3,153,049 Deferred income tax liability — 1,862 13 24,760 — 26,635 Other long-term liabilities — 80,608 8,131 40,872 — 129,611 Total partners’ equity 1,599,393 600,836 899,289 2,668,298 (4,297,823 ) 1,469,993 Total liabilities and partners’ equity $ 2,076,187 $ 3,863,576 $ 2,074,461 $ 2,890,478 $ (5,914,284 ) $ 4,990,418 Condensed Consolidating Balance Sheets December 31, 2015 (Thousands of Dollars) NuStar Energy NuStar Logistics NuPOP Non-Guarantor Subsidiaries Eliminations Consolidated Assets Cash and cash equivalents $ 885 $ 4 $ — $ 117,973 $ — $ 118,862 Receivables, net — 419 — 144,645 — 145,064 Inventories — 1,776 3,648 33,325 — 38,749 Other current assets 140 11,026 497 19,513 — 31,176 Intercompany receivable — 1,610,370 — — (1,610,370 ) — Total current assets 1,025 1,623,595 4,145 315,456 (1,610,370 ) 333,851 Property, plant and equipment, net — 1,915,370 570,415 1,197,786 — 3,683,571 Intangible assets, net — 48,961 — 63,050 — 112,011 Goodwill — 149,453 170,652 376,532 — 696,637 Investment in wholly owned subsidiaries 2,205,904 48,547 1,031,162 915,115 (4,200,728 ) — Deferred income tax asset — — — 4,037 (1,179 ) 2,858 Other long-term assets, net 933 255,957 26,329 13,378 — 296,597 Total assets $ 2,207,862 $ 4,041,883 $ 1,802,703 $ 2,885,354 $ (5,812,277 ) $ 5,125,525 Liabilities and Partners’ Equity Payables $ 12 $ 52,650 $ 11,193 $ 76,091 $ — $ 139,946 Short-term debt — 84,000 — — — 84,000 Accrued interest payable — 34,271 — 15 — 34,286 Accrued liabilities 723 32,816 5,753 15,902 — 55,194 Taxes other than income tax 126 6,452 3,325 2,907 — 12,810 Income tax payable — 1,362 9 4,606 — 5,977 Intercompany payable 508,363 — 858,018 243,989 (1,610,370 ) — Total current liabilities 509,224 211,551 878,298 343,510 (1,610,370 ) 332,213 Long-term debt — 3,002,743 — 52,869 — 3,055,612 Long-term payable to related party — 26,638 — 5,442 — 32,080 Deferred income tax liability — 1,143 36 24,810 (1,179 ) 24,810 Other long-term liabilities — 37,209 9,294 24,463 — 70,966 Total partners’ equity 1,698,638 762,599 915,075 2,434,260 (4,200,728 ) 1,609,844 Total liabilities and partners’ equity $ 2,207,862 $ 4,041,883 $ 1,802,703 $ 2,885,354 $ (5,812,277 ) $ 5,125,525 Condensed Consolidating Statements of Comprehensive Income For the Three Months Ended September 30, 2016 (Thousands of Dollars) NuStar Energy NuStar Logistics NuPOP Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ 131,696 $ 53,158 $ 256,925 $ (361 ) $ 441,418 Costs and expenses 252 79,443 37,957 236,173 (361 ) 353,464 Operating (loss) income (252 ) 52,253 15,201 20,752 — 87,954 Equity in earnings (loss) of subsidiaries 51,397 (44 ) 25,819 43,205 (120,377 ) — Interest (expense) income, net — (43,832 ) 2,165 6,645 — (35,022 ) Other (expense) income, net (4 ) 378 (8 ) (4 ) — 362 Income before income tax expense (benefit) 51,141 8,755 43,177 70,598 (120,377 ) 53,294 Income tax expense (benefit) — 588 (29 ) 1,594 — 2,153 Net income $ 51,141 $ 8,167 $ 43,206 $ 69,004 $ (120,377 ) $ 51,141 Comprehensive income $ 51,141 $ 8,143 $ 43,206 $ 66,539 $ (120,377 ) $ 48,652 Condensed Consolidating Statements of Comprehensive Income For the Three Months Ended September 30, 2015 (Thousands of Dollars) NuStar Energy NuStar Logistics NuPOP Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ 140,492 $ 53,988 $ 299,456 $ (370 ) $ 493,566 Costs and expenses 428 73,274 34,344 284,895 (369 ) 392,572 Operating (loss) income (428 ) 67,218 19,644 14,561 (1 ) 100,994 Equity in earnings (loss) of subsidiaries 65,444 (2,730 ) 16,113 36,270 (115,097 ) — Interest (expense) income, net — (35,495 ) 505 1,542 — (33,448 ) Other income, net — 500 7 1,269 — 1,776 Income before income tax expense 65,016 29,493 36,269 53,642 (115,098 ) 69,322 Income tax expense — 334 2 3,970 — 4,306 Net income $ 65,016 $ 29,159 $ 36,267 $ 49,672 $ (115,098 ) $ 65,016 Comprehensive income $ 65,016 $ 14,807 $ 36,267 $ 37,886 $ (115,098 ) $ 38,878 Condensed Consolidating Statements of Comprehensive Income (Loss) For the Nine Months Ended September 30, 2016 (Thousands of Dollars) NuStar Energy NuStar Logistics NuPOP Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ 383,836 $ 159,272 $ 742,890 $ (1,073 ) $ 1,284,925 Costs and expenses 1,204 221,839 104,958 684,261 (1,073 ) 1,011,189 Operating (loss) income (1,204 ) 161,997 54,314 58,629 — 273,736 Equity in earnings (loss) of subsidiaries 162,248 (5,362 ) 71,273 131,294 (359,453 ) — Interest (expense) income, net — (124,619 ) 5,699 15,546 — (103,374 ) Other income (expense), net 18 400 (18 ) (410 ) — (10 ) Income before income tax expense (benefit) 161,062 32,416 131,268 205,059 (359,453 ) 170,352 Income tax expense (benefit) 3 1,281 (24 ) 8,033 — 9,293 Net income $ 161,059 $ 31,135 $ 131,292 $ 197,026 $ (359,453 ) $ 161,059 Comprehensive income (loss) $ 161,059 $ (14,687 ) $ 131,292 $ 202,242 $ (359,453 ) $ 120,453 Condensed Consolidating Statements of Comprehensive Income For the Nine Months Ended September 30, 2015 (Thousands of Dollars) NuStar Energy NuStar Logistics NuPOP Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ 411,698 $ 155,284 $ 1,053,448 $ (1,309 ) $ 1,619,121 Costs and expenses 1,356 222,515 99,208 1,004,713 (1,351 ) 1,326,441 Operating (loss) income (1,356 ) 189,183 56,076 48,735 42 292,680 Equity in earnings (loss) of subsidiaries 248,596 (8,118 ) 110,448 167,207 (518,133 ) — Interest (expense) income, net — (100,448 ) 679 1,460 — (98,309 ) Other income, net — 1,175 16 60,701 — 61,892 Income from continuing operations before income tax expense 247,240 81,792 167,219 278,103 (518,091 ) 256,263 Income tax expense — 390 20 9,387 — 9,797 Income from continuing operations 247,240 81,402 167,199 268,716 (518,091 ) 246,466 Income from discontinued operations, net of tax — — — 774 — 774 Net income $ 247,240 $ 81,402 $ 167,199 $ 269,490 $ (518,091 ) $ 247,240 Comprehensive income $ 247,240 $ 90,847 $ 167,199 $ 244,648 $ (518,091 ) $ 231,843 Condensed Consolidating Statements of Cash Flows For the Nine Months Ended September 30, 2016 (Thousands of Dollars) NuStar Energy NuStar Logistics NuPOP Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by operating activities $ 292,572 $ 97,253 $ 118,436 $ 281,544 $ (475,256 ) $ 314,549 Cash flows from investing activities: Capital expenditures — (53,491 ) (43,329 ) (48,594 ) — (145,414 ) Change in accounts payable related to capital expenditures — (15,086 ) 2,645 (3,063 ) — (15,504 ) Investment in subsidiaries — — (212,900 ) — 212,900 — Net cash used in investing activities — (68,577 ) (253,584 ) (51,657 ) 212,900 (160,918 ) Cash flows from financing activities: Debt borrowings — 965,082 — 20,900 — 985,982 Debt repayments — (918,550 ) — (31,200 ) — (949,750 ) Issuance of common units, net of issuance costs 27,710 — — — — 27,710 General partner contribution 575 — — — — 575 Distributions to unitholders and general partner (294,153 ) (147,076 ) (147,077 ) (147,093 ) 441,246 (294,153 ) Contributions from (distributions to) affiliates — — — 178,890 (178,890 ) — Net intercompany activity (25,372 ) 75,165 282,226 (332,019 ) — — Other, net (1,406 ) (3,298 ) (1 ) (8,894 ) — (13,599 ) Net cash (used in) provided by financing activities (292,646 ) (28,677 ) 135,148 (319,416 ) 262,356 (243,235 ) Effect of foreign exchange rate changes on cash — — — 3,404 — 3,404 Net decrease in cash and cash equivalents (74 ) (1 ) — (86,125 ) — (86,200 ) Cash and cash equivalents as of the beginning of the period 885 4 — 117,973 — 118,862 Cash and cash equivalents as of the end of the period $ 811 $ 3 $ — $ 31,848 $ — $ 32,662 Condensed Consolidating Statements of Cash Flows For the Nine Months Ended September 30, 2015 (Thousands of Dollars) NuStar Energy NuStar Logistics NuPOP Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by operating activities $ 292,631 $ 157,684 $ 89,173 $ 277,881 $ (441,245 ) $ 376,124 Cash flows from investing activities: Capital expenditures — (156,510 ) (30,846 ) (53,315 ) — (240,671 ) Change in accounts payable related to capital expenditures — (11,797 ) 4,707 (712 ) — (7,802 ) Acquisitions — — — (142,500 ) — (142,500 ) Investment in other long-term assets — — — (3,587 ) — (3,587 ) Proceeds from sale or disposition of assets — 10,318 20 6,787 — 17,125 Net cash used in investing activities — (157,989 ) (26,119 ) (193,327 ) — (377,435 ) Cash flows from financing activities: Debt borrowings — 1,280,879 — 88,900 — 1,369,779 Debt repayments — (990,410 ) — (32,000 ) — (1,022,410 ) Distributions to unitholders and general partner (294,153 ) (147,076 ) (147,077 ) (147,092 ) 441,245 (294,153 ) Net intercompany activity 1,484 (134,701 ) 84,023 49,194 — — Other, net — (7,462 ) — (5,611 ) — (13,073 ) Net cash (used in) provided by financing activities (292,669 ) 1,230 (63,054 ) (46,609 ) 441,245 40,143 Effect of foreign exchange rate changes on cash — — — (10,319 ) — (10,319 ) Net (decrease) increase in cash and cash equivalents (38 ) 925 — 27,626 — 28,513 Cash and cash equivalents as of the beginning of the period 923 6 — 86,983 — 87,912 Cash and cash equivalents as of the end of the period $ 885 $ 931 $ — $ 114,609 $ — $ 116,425 |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT On October 14, 2016, we entered into an agreement with Martin Operating Partnership L.P. to purchase crude oil and refined product storage assets in the Port of Corpus Christi for approximately $93.0 million , net. The assets to be acquired provide 900,000 barrels of crude oil storage capacity, 250,000 barrels of refined product storage capacity and exclusive use of the port’s new crude oil dock. The acquisition is expected to close by the end of the fourth quarter of 2016, subject to customary closing conditions. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | The following assets and liabilities are measured at fair value on a recurring basis: September 30, 2016 Level 1 Level 2 Level 3 Total (Thousands of Dollars) Assets: Other current assets: Product imbalances $ 1,008 $ — $ — $ 1,008 Commodity derivatives — 704 — 704 Total $ 1,008 $ 704 $ — $ 1,712 Liabilities: Accrued liabilities: Product imbalances $ (1,344 ) $ — $ — $ (1,344 ) Commodity derivatives (301 ) (701 ) — (1,002 ) Other long-term liabilities: Guarantee liability — — (1,736 ) (1,736 ) Interest rate swaps — (50,910 ) — (50,910 ) Total $ (1,645 ) $ (51,611 ) $ (1,736 ) $ (54,992 ) December 31, 2015 Level 1 Level 2 Level 3 Total (Thousands of Dollars) Assets: Other current assets: Product imbalances $ 179 $ — $ — $ 179 Commodity derivatives 11,325 77 — 11,402 Other long-term assets, net: Interest rate swaps — 2,755 — 2,755 Total $ 11,504 $ 2,832 $ — $ 14,336 Liabilities: Accrued liabilities: Product imbalances $ (419 ) $ — $ — $ (419 ) Commodity derivatives — (120 ) — (120 ) Other long-term liabilities: Guarantee liability — — (1,697 ) (1,697 ) Interest rate swaps — (1,452 ) — (1,452 ) Total $ (419 ) $ (1,572 ) $ (1,697 ) $ (3,688 ) |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The following table summarizes the activity in our Level 3 liabilities: Nine Months Ended September 30, 2016 (Thousands of Dollars) Beginning balance $ 1,697 Adjustments to guarantee liability 39 Ending balance $ 1,736 |
Fair Value and Carrying Value of Debt and Note Receivable [Table Text Block] | The estimated fair values and carrying amounts of the long-term debt and the Axeon Term Loan were as follows: September 30, 2016 December 31, 2015 Fair Value Carrying Amount Fair Value Carrying Amount (Thousands of Dollars) Long-term debt $ 3,214,845 $ 3,153,049 $ 2,929,438 $ 3,055,612 Axeon Term Loan $ 175,717 $ 170,391 $ 172,123 $ 170,352 |
DERIVATIVES AND RISK MANAGEME23
DERIVATIVES AND RISK MANAGEMENT ACTIVITIES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The fair values of our derivative instruments included in our consolidated balance sheets were as follows: Asset Derivatives Liability Derivatives Balance Sheet Location September 30, December 31, September 30, December 31, (Thousands of Dollars) Derivatives Designated as Hedging Instruments: Commodity contracts Other current assets $ — $ 1,937 $ — $ (23 ) Interest rate swaps Other long-term assets, net — 2,755 — — Commodity contracts Accrued liabilities 280 — (2,543 ) — Interest rate swaps Other long-term liabilities — — (50,910 ) (1,452 ) Total 280 4,692 (53,453 ) (1,475 ) Derivatives Not Designated as Hedging Instruments: Commodity contracts Other current assets 704 34,016 — (24,528 ) Commodity contracts Accrued liabilities 7,034 117 (5,773 ) (237 ) Total 7,738 34,133 (5,773 ) (24,765 ) Total Derivatives $ 8,018 $ 38,825 $ (59,226 ) $ (26,240 ) |
Derivatives Assets And Liabilities Eligible for Offset Net [Table Text Block] | The following are the net amounts presented on the consolidated balance sheets: Commodity Contracts September 30, December 31, (Thousands of Dollars) Net amounts of assets presented in the consolidated balance sheets $ 704 $ 11,402 Net amounts of liabilities presented in the consolidated balance sheets $ (1,002 ) $ (120 ) |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Text Block] | We recognize the impact of our commodity contracts on earnings in “Cost of product sales” on the condensed consolidated statements of comprehensive income, and that impact was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (Thousands of Dollars) Derivatives Designated as Fair Value Hedging Instruments: Gain (loss) recognized in income on derivative $ 558 $ 16,005 $ (6,246 ) $ 11,506 Gain (loss) recognized in income on hedged item 329 (15,479 ) 10,134 (8,748 ) Gain recognized in income for ineffective portion 887 526 3,888 2,758 Derivatives Not Designated as Hedging Instruments: (Loss) gain recognized in income on derivative $ (153 ) $ 1,151 $ (157 ) $ 1,142 Our interest rate swaps also had the following impact on earnings: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (Thousands of Dollars) Derivatives Designated as Cash Flow Hedging Instruments: (Loss) gain recognized in other comprehensive income on derivative (effective portion) $ (2,035 ) $ (16,757 ) $ (52,213 ) $ 1,996 Loss reclassified from AOCI into interest expense, net (effective portion) $ (2,011 ) $ (2,405 ) $ (6,391 ) $ (7,449 ) |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions [Text Block] | Employees of NuStar GP, LLC provided services to us and NuStar GP Holdings; therefore, we reimbursed NuStar GP, LLC for all employee costs incurred prior to the Employee Transfer, other than the expenses allocated to NuStar GP Holdings, as summarized below: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (Thousands of Dollars) Operating expenses $ — $ 34,904 $ 21,681 $ 100,761 General and administrative expenses $ — $ 15,144 $ 10,493 $ 50,237 |
Schedule Of Employee Transfer [Table Text Block] | The following table summarizes the related party transactions and changes to amounts reported on our consolidated balance sheet as a result of the Employee Transfer on March 1, 2016 (thousands of dollars): Decrease in related party payable: Current $ 16,014 Long-term 32,656 Decrease in related party payable $ 48,670 Changes to our consolidated balance sheet: Current and long-term assets $ 2,154 Current liabilities 5,609 Other long-term liabilities 34,042 Limited partner’s equity 2,664 Accumulated other comprehensive loss 4,201 Changes to our consolidated balance sheet $ 48,670 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | The reconciliation of funded status for the Pension Plans and other postretirement benefit plans as of December 31, 2015 was as follows: Pension Plans Other Postretirement Benefits (Thousands of Dollars) Fair value of plan assets $ 87,706 $ — Less: Benefit obligation 109,202 10,042 Funded status $ (21,496 ) $ (10,042 ) |
Schedule of Net Benefit Costs [Table Text Block] | The following table summarizes the components of net periodic benefit costs for the Pension Plans and other postretirement benefits on a combined basis for periods prior to the Employee Transfer and after the Employee Transfer: Pension Plans Other Postretirement Benefits 2016 2015 2016 2015 (Thousands of Dollars) For the three months ended September 30: Service cost $ 1,926 $ 1,919 $ 105 $ 118 Interest cost 1,006 1,097 100 111 Expected return on assets (1,353 ) (1,254 ) — — Amortization of prior service credit (516 ) (516 ) (286 ) (285 ) Amortization of net loss 273 461 45 67 Net periodic benefit cost (income) $ 1,336 $ 1,707 $ (36 ) $ 11 For the nine months ended September 30: Service cost $ 5,778 $ 5,757 $ 315 $ 354 Interest cost 3,018 3,291 300 334 Expected return on assets (4,056 ) (3,762 ) — — Amortization of prior service credit (1,549 ) (1,547 ) (858 ) (857 ) Amortization of net loss 819 1,383 135 201 Net periodic benefit cost (income) $ 4,010 $ 5,122 $ (108 ) $ 32 |
PARTNERS' EQUITY (Tables)
PARTNERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Partners' Capital Notes [Abstract] | |
Schedule of Changes in Partners' Equity | The following table summarizes changes to our partners’ equity (in thousands of dollars): Balance as of January 1, 2016 $ 1,609,844 Net income 161,059 Unit-based compensation expense 5,564 Other comprehensive loss (40,606 ) Cash distributions to partners (294,153 ) Issuance of common units, including contribution from general partner 28,285 Balance as of September 30, 2016 $ 1,469,993 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The balance of and changes in the components included in AOCI were as follows: Foreign Currency Translation Cash Flow Hedges Pension and Other Postretirement Benefits Total (Thousands of Dollars) Balance as of January 1, 2016 $ (60,826 ) $ (27,968 ) $ — $ (88,794 ) Other comprehensive income (loss): Employee Transfer — — 4,201 4,201 Deferred income tax adjustments — — 2,414 2,414 Other comprehensive loss before reclassification adjustments (270 ) (52,213 ) — (52,483 ) Net gain on pension costs reclassified into operating expense — — (839 ) (839 ) Net gain on pension costs reclassified into general and administrative expense — — (290 ) (290 ) Net loss on cash flow hedges reclassified into interest expense, net — 6,391 — 6,391 Other comprehensive (loss) income (270 ) (45,822 ) 5,486 (40,606 ) Balance as of September 30, 2016 $ (61,096 ) $ (73,790 ) $ 5,486 $ (129,400 ) |
Schedule of Calculation of Net Income Applicable to General Partner [Text Block] | The following table details the calculation of net income applicable to the general partner: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (Thousands of Dollars) Net income applicable to general partner and limited partners’ interest $ 51,141 $ 65,016 $ 161,059 $ 247,240 Less general partner incentive distribution 10,890 10,805 32,500 32,415 Net income after general partner incentive distribution 40,251 54,211 128,559 214,825 General partner interest 2 % 2 % 2 % 2 % General partner allocation of net income after general partner incentive distribution 805 1,084 2,571 4,297 General partner incentive distribution 10,890 10,805 32,500 32,415 Net income applicable to general partner $ 11,695 $ 11,889 $ 35,071 $ 36,712 |
Schedule of Distributions To General and Limited Partners [Text Block] | The following table reflects the allocation of total cash distributions to the general and limited partners applicable to the period in which the distributions were earned: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (Thousands of Dollars, Except Per Unit Data) General partner interest $ 1,976 $ 1,961 $ 5,898 $ 5,883 General partner incentive distribution 10,890 10,805 32,500 32,415 Total general partner distribution 12,866 12,766 38,398 38,298 Limited partners’ distribution 85,943 85,285 256,513 255,855 Total cash distributions $ 98,809 $ 98,051 $ 294,911 $ 294,153 Cash distributions per unit applicable to limited partners $ 1.095 $ 1.095 $ 3.285 $ 3.285 |
Distributions Made to Limited and General Partners, by Distribution [Table Text Block] | The following table summarizes information related to our quarterly cash distributions: Quarter Ended Cash Distributions Per Unit Total Cash Distributions Record Date Payment Date (Thousands of Dollars) September 30, 2016 (a) $ 1.095 $ 98,809 November 8, 2016 November 14, 2016 June 30, 2016 $ 1.095 $ 98,051 August 9, 2016 August 12, 2016 March 31, 2016 $ 1.095 $ 98,051 May 9, 2016 May 13, 2016 December 31, 2015 $ 1.095 $ 98,051 February 8, 2016 February 12, 2016 (a) The distribution was announced on October 28, 2016 . |
NET INCOME PER UNIT (Tables)
NET INCOME PER UNIT (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Net Income Per Unit | The following table details the calculation of earnings per unit: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (Thousands of Dollars, Except Unit and Per Unit Data) Net income attributable to NuStar Energy L.P. $ 51,141 $ 65,016 $ 161,059 $ 247,240 Less: Distributions to general partner (including incentive distribution rights) 12,866 12,766 38,398 38,298 Less: Distributions to limited partner 85,943 85,285 256,513 255,855 Less: DERs to restricted units 650 — 1,969 — Distributions in excess of earnings $ (48,318 ) $ (33,035 ) $ (135,821 ) $ (46,913 ) Net income attributable to limited partner units: Distributions to limited partner $ 85,943 $ 85,285 $ 256,513 $ 255,855 Allocation of distributions in excess of earnings (47,351 ) (32,374 ) (133,103 ) (45,974 ) Total $ 38,592 $ 52,911 $ 123,410 $ 209,881 Basic weighted-average limited partner units outstanding 78,031,053 77,886,078 77,934,802 77,886,078 Diluted units outstanding: Basic weighted-average limited partner units outstanding 78,031,053 77,886,078 77,934,802 77,886,078 Effect of dilutive participating securities 31,836 — 46,497 — Diluted weighted-average limited partner units outstanding 78,062,889 77,886,078 77,981,299 77,886,078 Basic and diluted net income per unit applicable to limited partners $ 0.49 $ 0.68 $ 1.58 $ 2.69 |
STATEMENTS OF CASH FLOWS (Table
STATEMENTS OF CASH FLOWS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Statement of Cash Flows [Abstract] | |
Schedule of Changes in Current Assets and Liabilities [Text Block] | Changes in current assets and current liabilities were as follows: Nine Months Ended September 30, 2016 2015 (Thousands of Dollars) Decrease (increase) in current assets: Accounts receivable $ (15,200 ) $ 75,532 Inventories 3,767 1,654 Other current assets 4,809 1,660 Increase (decrease) in current liabilities: Accounts payable 7,706 (45,626 ) Payable to related party, net 806 743 Accrued interest payable (6,672 ) (5,424 ) Accrued liabilities (7,477 ) (12,338 ) Taxes other than income tax 3,670 3,239 Income tax payable (3,886 ) 363 Changes in current assets and current liabilities $ (12,477 ) $ 19,803 |
Schedule of Supplemental Cash Flow Information [Text Block] | Cash flows related to interest and income taxes were as follows: Nine Months Ended September 30, 2016 2015 (Thousands of Dollars) Cash paid for interest, net of amount capitalized $ 112,796 $ 105,340 Cash paid for income taxes, net of tax refunds received $ 9,873 $ 8,987 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Results of operations for the reportable segments were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (Thousands of Dollars) Revenues: Pipeline $ 122,481 $ 131,395 $ 362,929 $ 378,030 Storage: Third parties 152,746 155,475 445,497 450,372 Intersegment 5,021 6,628 16,543 19,707 Total storage 157,767 162,103 462,040 470,079 Fuels marketing 166,191 206,696 476,499 790,719 Consolidation and intersegment eliminations (5,021 ) (6,628 ) (16,543 ) (19,707 ) Total revenues $ 441,418 $ 493,566 $ 1,284,925 $ 1,619,121 Operating income (loss): Pipeline $ 58,922 $ 68,536 $ 186,739 $ 201,996 Storage 58,420 59,986 166,496 161,715 Fuels marketing (337 ) (1,819 ) 282 10,756 Consolidation and intersegment eliminations (1 ) (1 ) — 41 Total segment operating income 117,004 126,702 353,517 374,508 General and administrative expenses 26,957 23,679 73,399 75,425 Other depreciation and amortization expense 2,093 2,029 6,382 6,403 Total operating income $ 87,954 $ 100,994 $ 273,736 $ 292,680 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | Total assets by reportable segment were as follows: September 30, December 31, (Thousands of Dollars) Pipeline $ 2,014,710 $ 2,014,098 Storage 2,462,597 2,476,389 Fuels marketing 143,438 156,866 Total segment assets 4,620,745 4,647,353 Other partnership assets 369,673 478,172 Total consolidated assets $ 4,990,418 $ 5,125,525 |
CONDENSED CONSOLIDATING FINAN30
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS [Abstract] | |
Condensed Consolidating Balance Sheets [Text Block] | Condensed Consolidating Balance Sheets September 30, 2016 (Thousands of Dollars) NuStar Energy NuStar Logistics NuPOP Non-Guarantor Subsidiaries Eliminations Consolidated Assets Cash and cash equivalents $ 811 $ 3 $ — $ 31,848 $ — $ 32,662 Receivables, net — 257 — 159,804 — 160,061 Inventories — 2,285 3,514 29,252 — 35,051 Other current assets 107 13,749 1,496 10,880 (1 ) 26,231 Intercompany receivable — 1,495,783 — 120,677 (1,616,460 ) — Total current assets 918 1,512,077 5,010 352,461 (1,616,461 ) 254,005 Property, plant and equipment, net — 1,892,540 591,145 1,189,204 — 3,672,889 Intangible assets, net — 43,830 — 57,800 — 101,630 Goodwill — 149,453 170,652 376,532 — 696,637 Investment in wholly owned subsidiaries 2,073,996 43,185 1,281,325 899,317 (4,297,823 ) — Deferred income tax asset — — — 2,186 — 2,186 Other long-term assets, net 1,273 222,491 26,329 12,978 — 263,071 Total assets $ 2,076,187 $ 3,863,576 $ 2,074,461 $ 2,890,478 $ (5,914,284 ) $ 4,990,418 Liabilities and Partners’ Equity Payables $ 29 $ 19,939 $ 12,456 $ 72,887 $ — $ 105,311 Short-term debt — 7,000 — — — 7,000 Accrued interest payable — 27,597 — 17 — 27,614 Accrued liabilities 683 7,930 9,528 34,379 — 52,520 Taxes other than income tax 62 6,976 4,604 4,979 — 16,621 Income tax payable — 540 — 1,525 (1 ) 2,064 Intercompany payable 476,020 — 1,140,440 — (1,616,460 ) — Total current liabilities 476,794 69,982 1,167,028 113,787 (1,616,461 ) 211,130 Long-term debt — 3,110,288 — 42,761 — 3,153,049 Deferred income tax liability — 1,862 13 24,760 — 26,635 Other long-term liabilities — 80,608 8,131 40,872 — 129,611 Total partners’ equity 1,599,393 600,836 899,289 2,668,298 (4,297,823 ) 1,469,993 Total liabilities and partners’ equity $ 2,076,187 $ 3,863,576 $ 2,074,461 $ 2,890,478 $ (5,914,284 ) $ 4,990,418 Condensed Consolidating Balance Sheets December 31, 2015 (Thousands of Dollars) NuStar Energy NuStar Logistics NuPOP Non-Guarantor Subsidiaries Eliminations Consolidated Assets Cash and cash equivalents $ 885 $ 4 $ — $ 117,973 $ — $ 118,862 Receivables, net — 419 — 144,645 — 145,064 Inventories — 1,776 3,648 33,325 — 38,749 Other current assets 140 11,026 497 19,513 — 31,176 Intercompany receivable — 1,610,370 — — (1,610,370 ) — Total current assets 1,025 1,623,595 4,145 315,456 (1,610,370 ) 333,851 Property, plant and equipment, net — 1,915,370 570,415 1,197,786 — 3,683,571 Intangible assets, net — 48,961 — 63,050 — 112,011 Goodwill — 149,453 170,652 376,532 — 696,637 Investment in wholly owned subsidiaries 2,205,904 48,547 1,031,162 915,115 (4,200,728 ) — Deferred income tax asset — — — 4,037 (1,179 ) 2,858 Other long-term assets, net 933 255,957 26,329 13,378 — 296,597 Total assets $ 2,207,862 $ 4,041,883 $ 1,802,703 $ 2,885,354 $ (5,812,277 ) $ 5,125,525 Liabilities and Partners’ Equity Payables $ 12 $ 52,650 $ 11,193 $ 76,091 $ — $ 139,946 Short-term debt — 84,000 — — — 84,000 Accrued interest payable — 34,271 — 15 — 34,286 Accrued liabilities 723 32,816 5,753 15,902 — 55,194 Taxes other than income tax 126 6,452 3,325 2,907 — 12,810 Income tax payable — 1,362 9 4,606 — 5,977 Intercompany payable 508,363 — 858,018 243,989 (1,610,370 ) — Total current liabilities 509,224 211,551 878,298 343,510 (1,610,370 ) 332,213 Long-term debt — 3,002,743 — 52,869 — 3,055,612 Long-term payable to related party — 26,638 — 5,442 — 32,080 Deferred income tax liability — 1,143 36 24,810 (1,179 ) 24,810 Other long-term liabilities — 37,209 9,294 24,463 — 70,966 Total partners’ equity 1,698,638 762,599 915,075 2,434,260 (4,200,728 ) 1,609,844 Total liabilities and partners’ equity $ 2,207,862 $ 4,041,883 $ 1,802,703 $ 2,885,354 $ (5,812,277 ) $ 5,125,525 |
Condensed Consolidating Statements of Comprehensive Income (Loss) [Table Text Block] | Condensed Consolidating Statements of Comprehensive Income For the Three Months Ended September 30, 2016 (Thousands of Dollars) NuStar Energy NuStar Logistics NuPOP Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ 131,696 $ 53,158 $ 256,925 $ (361 ) $ 441,418 Costs and expenses 252 79,443 37,957 236,173 (361 ) 353,464 Operating (loss) income (252 ) 52,253 15,201 20,752 — 87,954 Equity in earnings (loss) of subsidiaries 51,397 (44 ) 25,819 43,205 (120,377 ) — Interest (expense) income, net — (43,832 ) 2,165 6,645 — (35,022 ) Other (expense) income, net (4 ) 378 (8 ) (4 ) — 362 Income before income tax expense (benefit) 51,141 8,755 43,177 70,598 (120,377 ) 53,294 Income tax expense (benefit) — 588 (29 ) 1,594 — 2,153 Net income $ 51,141 $ 8,167 $ 43,206 $ 69,004 $ (120,377 ) $ 51,141 Comprehensive income $ 51,141 $ 8,143 $ 43,206 $ 66,539 $ (120,377 ) $ 48,652 Condensed Consolidating Statements of Comprehensive Income For the Three Months Ended September 30, 2015 (Thousands of Dollars) NuStar Energy NuStar Logistics NuPOP Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ 140,492 $ 53,988 $ 299,456 $ (370 ) $ 493,566 Costs and expenses 428 73,274 34,344 284,895 (369 ) 392,572 Operating (loss) income (428 ) 67,218 19,644 14,561 (1 ) 100,994 Equity in earnings (loss) of subsidiaries 65,444 (2,730 ) 16,113 36,270 (115,097 ) — Interest (expense) income, net — (35,495 ) 505 1,542 — (33,448 ) Other income, net — 500 7 1,269 — 1,776 Income before income tax expense 65,016 29,493 36,269 53,642 (115,098 ) 69,322 Income tax expense — 334 2 3,970 — 4,306 Net income $ 65,016 $ 29,159 $ 36,267 $ 49,672 $ (115,098 ) $ 65,016 Comprehensive income $ 65,016 $ 14,807 $ 36,267 $ 37,886 $ (115,098 ) $ 38,878 Condensed Consolidating Statements of Comprehensive Income (Loss) For the Nine Months Ended September 30, 2016 (Thousands of Dollars) NuStar Energy NuStar Logistics NuPOP Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ 383,836 $ 159,272 $ 742,890 $ (1,073 ) $ 1,284,925 Costs and expenses 1,204 221,839 104,958 684,261 (1,073 ) 1,011,189 Operating (loss) income (1,204 ) 161,997 54,314 58,629 — 273,736 Equity in earnings (loss) of subsidiaries 162,248 (5,362 ) 71,273 131,294 (359,453 ) — Interest (expense) income, net — (124,619 ) 5,699 15,546 — (103,374 ) Other income (expense), net 18 400 (18 ) (410 ) — (10 ) Income before income tax expense (benefit) 161,062 32,416 131,268 205,059 (359,453 ) 170,352 Income tax expense (benefit) 3 1,281 (24 ) 8,033 — 9,293 Net income $ 161,059 $ 31,135 $ 131,292 $ 197,026 $ (359,453 ) $ 161,059 Comprehensive income (loss) $ 161,059 $ (14,687 ) $ 131,292 $ 202,242 $ (359,453 ) $ 120,453 Condensed Consolidating Statements of Comprehensive Income For the Nine Months Ended September 30, 2015 (Thousands of Dollars) NuStar Energy NuStar Logistics NuPOP Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ 411,698 $ 155,284 $ 1,053,448 $ (1,309 ) $ 1,619,121 Costs and expenses 1,356 222,515 99,208 1,004,713 (1,351 ) 1,326,441 Operating (loss) income (1,356 ) 189,183 56,076 48,735 42 292,680 Equity in earnings (loss) of subsidiaries 248,596 (8,118 ) 110,448 167,207 (518,133 ) — Interest (expense) income, net — (100,448 ) 679 1,460 — (98,309 ) Other income, net — 1,175 16 60,701 — 61,892 Income from continuing operations before income tax expense 247,240 81,792 167,219 278,103 (518,091 ) 256,263 Income tax expense — 390 20 9,387 — 9,797 Income from continuing operations 247,240 81,402 167,199 268,716 (518,091 ) 246,466 Income from discontinued operations, net of tax — — — 774 — 774 Net income $ 247,240 $ 81,402 $ 167,199 $ 269,490 $ (518,091 ) $ 247,240 Comprehensive income $ 247,240 $ 90,847 $ 167,199 $ 244,648 $ (518,091 ) $ 231,843 |
Condensed Consolidating Statements of Cash Flows [Text Block] | Condensed Consolidating Statements of Cash Flows For the Nine Months Ended September 30, 2016 (Thousands of Dollars) NuStar Energy NuStar Logistics NuPOP Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by operating activities $ 292,572 $ 97,253 $ 118,436 $ 281,544 $ (475,256 ) $ 314,549 Cash flows from investing activities: Capital expenditures — (53,491 ) (43,329 ) (48,594 ) — (145,414 ) Change in accounts payable related to capital expenditures — (15,086 ) 2,645 (3,063 ) — (15,504 ) Investment in subsidiaries — — (212,900 ) — 212,900 — Net cash used in investing activities — (68,577 ) (253,584 ) (51,657 ) 212,900 (160,918 ) Cash flows from financing activities: Debt borrowings — 965,082 — 20,900 — 985,982 Debt repayments — (918,550 ) — (31,200 ) — (949,750 ) Issuance of common units, net of issuance costs 27,710 — — — — 27,710 General partner contribution 575 — — — — 575 Distributions to unitholders and general partner (294,153 ) (147,076 ) (147,077 ) (147,093 ) 441,246 (294,153 ) Contributions from (distributions to) affiliates — — — 178,890 (178,890 ) — Net intercompany activity (25,372 ) 75,165 282,226 (332,019 ) — — Other, net (1,406 ) (3,298 ) (1 ) (8,894 ) — (13,599 ) Net cash (used in) provided by financing activities (292,646 ) (28,677 ) 135,148 (319,416 ) 262,356 (243,235 ) Effect of foreign exchange rate changes on cash — — — 3,404 — 3,404 Net decrease in cash and cash equivalents (74 ) (1 ) — (86,125 ) — (86,200 ) Cash and cash equivalents as of the beginning of the period 885 4 — 117,973 — 118,862 Cash and cash equivalents as of the end of the period $ 811 $ 3 $ — $ 31,848 $ — $ 32,662 Condensed Consolidating Statements of Cash Flows For the Nine Months Ended September 30, 2015 (Thousands of Dollars) NuStar Energy NuStar Logistics NuPOP Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by operating activities $ 292,631 $ 157,684 $ 89,173 $ 277,881 $ (441,245 ) $ 376,124 Cash flows from investing activities: Capital expenditures — (156,510 ) (30,846 ) (53,315 ) — (240,671 ) Change in accounts payable related to capital expenditures — (11,797 ) 4,707 (712 ) — (7,802 ) Acquisitions — — — (142,500 ) — (142,500 ) Investment in other long-term assets — — — (3,587 ) — (3,587 ) Proceeds from sale or disposition of assets — 10,318 20 6,787 — 17,125 Net cash used in investing activities — (157,989 ) (26,119 ) (193,327 ) — (377,435 ) Cash flows from financing activities: Debt borrowings — 1,280,879 — 88,900 — 1,369,779 Debt repayments — (990,410 ) — (32,000 ) — (1,022,410 ) Distributions to unitholders and general partner (294,153 ) (147,076 ) (147,077 ) (147,092 ) 441,245 (294,153 ) Net intercompany activity 1,484 (134,701 ) 84,023 49,194 — — Other, net — (7,462 ) — (5,611 ) — (13,073 ) Net cash (used in) provided by financing activities (292,669 ) 1,230 (63,054 ) (46,609 ) 441,245 40,143 Effect of foreign exchange rate changes on cash — — — (10,319 ) — (10,319 ) Net (decrease) increase in cash and cash equivalents (38 ) 925 — 27,626 — 28,513 Cash and cash equivalents as of the beginning of the period 923 6 — 86,983 — 87,912 Cash and cash equivalents as of the end of the period $ 885 $ 931 $ — $ 114,609 $ — $ 116,425 |
ORGANIZATION AND BASIS OF PRE31
ORGANIZATION AND BASIS OF PRESENTATION Narrative (Details) $ in Thousands, bbl in Millions | Sep. 30, 2016 | Jan. 02, 2015USD ($)bbl | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) |
Organization and Operations [Abstract] | ||||
Total approximate ownership interest held by general partner | 15.00% | |||
Number of business segments | 3 | |||
Business Acquisition [Line Items] | ||||
Gain associated with the Linden Acquisition | $ 0 | $ 56,277 | ||
Linden Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquired storage capacity | bbl | 4.3 | |||
Equity method investment, ownership percentage by joint venture partner | 50.00% | |||
Business combination, step acquisition, equity interest in acquiree, percentage | 50.00% | |||
Acquisition date fair value of previously held equity interest | $ 128,000 | |||
Gain associated with the Linden Acquisition | $ 56,300 |
NEW ACCOUNTING PRONCOUNCEMENTS
NEW ACCOUNTING PRONCOUNCEMENTS Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other long-term assets, net | $ 263,071 | $ 296,597 |
Long-term debt | $ 3,153,049 | 3,055,612 |
Accounting Standards Update 2015-03 [Member] | Restatement Adjustment [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other long-term assets, net | (23,700) | |
Long-term debt | $ (23,700) |
DEBT Narrative (Details)
DEBT Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
$1.5 billion revolving credit agreement | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 1,500 | |
Term | 5 years | |
Line of credit facility, increase (decrease), net | $ 109.6 | |
Interest rate at period end | 2.30% | |
Long-term debt | $ 992.2 | |
Covenant terms | our consolidated debt coverage ratio (as defined in the Revolving Credit Agreement) could not exceed 5.00-to-1.00 | |
Current remaining borrowing capacity | $ 491.9 | |
Letters of credit issued | 15.8 | |
GoZone Bonds | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 365.4 | |
Interest rate at period end | 0.90% | |
Amount received from trustee | $ 12 | $ 13.6 |
Amount remaining in trust | 42.8 | |
Receivables Financing Agreement | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 125 | |
Long-term debt | $ 43.2 | |
Borrowing capacity, description | The amount available for borrowing is based on the availability of eligible receivables and other customary factors and conditions. | |
Maturity date description | The Securitization Program has an initial termination date of June 15, 2018, with the option to renew for additional 364-day periods thereafter. | |
Collateral amount | $ 102.5 |
COMMITMENTS AND CONTINGENCIES N
COMMITMENTS AND CONTINGENCIES Narrative 1 (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Loss Contingencies [Line Items] | ||
Loss contingency accrual, at carrying value | $ 0.5 | $ 4.8 |
FAIR VALUE MEASUREMENTS Table 1
FAIR VALUE MEASUREMENTS Table 1 (Details) - Recurring Fair Value Measurements - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Assets: | ||
Total assets | $ 1,712 | $ 14,336 |
Liabilities: | ||
Total liabilities | (54,992) | (3,688) |
Fair Value Level 1 | ||
Assets: | ||
Total assets | 1,008 | 11,504 |
Liabilities: | ||
Total liabilities | (1,645) | (419) |
Fair Value Level 2 | ||
Assets: | ||
Total assets | 704 | 2,832 |
Liabilities: | ||
Total liabilities | (51,611) | (1,572) |
Fair Value Level 3 | ||
Assets: | ||
Total assets | 0 | 0 |
Liabilities: | ||
Total liabilities | (1,736) | (1,697) |
Other current assets | ||
Assets: | ||
Product imbalances - asset | 1,008 | 179 |
Commodity derivatives - assets | 704 | 11,402 |
Other current assets | Fair Value Level 1 | ||
Assets: | ||
Product imbalances - asset | 1,008 | 179 |
Commodity derivatives - assets | 0 | 11,325 |
Other current assets | Fair Value Level 2 | ||
Assets: | ||
Product imbalances - asset | 0 | 0 |
Commodity derivatives - assets | 704 | 77 |
Other current assets | Fair Value Level 3 | ||
Assets: | ||
Product imbalances - asset | 0 | 0 |
Commodity derivatives - assets | 0 | 0 |
Other long-term assets, net | ||
Assets: | ||
Interest rate swaps - assets | 2,755 | |
Other long-term assets, net | Fair Value Level 1 | ||
Assets: | ||
Interest rate swaps - assets | 0 | |
Other long-term assets, net | Fair Value Level 2 | ||
Assets: | ||
Interest rate swaps - assets | 2,755 | |
Other long-term assets, net | Fair Value Level 3 | ||
Assets: | ||
Interest rate swaps - assets | 0 | |
Accrued liabilities | ||
Liabilities: | ||
Product imbalances - liability | (1,344) | (419) |
Commodity derivatives - liabilities | (1,002) | (120) |
Accrued liabilities | Fair Value Level 1 | ||
Liabilities: | ||
Product imbalances - liability | (1,344) | (419) |
Commodity derivatives - liabilities | (301) | 0 |
Accrued liabilities | Fair Value Level 2 | ||
Liabilities: | ||
Product imbalances - liability | 0 | 0 |
Commodity derivatives - liabilities | (701) | (120) |
Accrued liabilities | Fair Value Level 3 | ||
Liabilities: | ||
Product imbalances - liability | 0 | 0 |
Commodity derivatives - liabilities | 0 | 0 |
Other long-term liabilities | ||
Liabilities: | ||
Guarantee liability | (1,736) | (1,697) |
Interest rate swaps - liabilities | (50,910) | (1,452) |
Other long-term liabilities | Fair Value Level 1 | ||
Liabilities: | ||
Guarantee liability | 0 | 0 |
Interest rate swaps - liabilities | 0 | 0 |
Other long-term liabilities | Fair Value Level 2 | ||
Liabilities: | ||
Guarantee liability | 0 | 0 |
Interest rate swaps - liabilities | (50,910) | (1,452) |
Other long-term liabilities | Fair Value Level 3 | ||
Liabilities: | ||
Guarantee liability | (1,736) | (1,697) |
Interest rate swaps - liabilities | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS Narrati
FAIR VALUE MEASUREMENTS Narrative (Details) | Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Feb. 26, 2014USD ($) | Dec. 31, 2013USD ($) |
Axeon [Member] | ||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||||
Equity method losses in excess of investment | $ 21,300,000 | |||
Investment in joint venture | $ 0 | |||
Axeon [Member] | ||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||||
Maximum amount of guarantees | $ 125,000,000 | |||
Axeon Term Loan receivable | 190,000,000 | |||
Carrying amount, Axeon Term Loan | 170,391,000 | $ 170,352,000 | ||
Guarantee liability | 1,700,000 | |||
Axeon [Member] | Financial Standby Letter of Credit [Member] | ||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||||
Amount of guarantees provided | 16,700,000 | |||
Axeon [Member] | Financial Guarantee [Member] | ||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||||
Amount of guarantees provided | $ 75,500,000 | $ 71,900,000 | ||
Number of guarantees with unlimited exposure | 1 | 2 | ||
Axeon [Member] | ||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||||
Ownership percentage of entity sold | 50.00% |
FAIR VALUE MEASUREMENTS Table 2
FAIR VALUE MEASUREMENTS Table 2 (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | $ 1,697 |
Ending balance | 1,736 |
Guarantees [Member] | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Adjustments to guarantee liability | $ 39 |
FAIR VALUE MEASUREMENTS Table 3
FAIR VALUE MEASUREMENTS Table 3 (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value and Carrying Value of Debt and Note Receivable from Counterparty [Line Items] | ||
Fair value, long-term debt | $ 3,214,845 | $ 2,929,438 |
Carrying amount, long-term debt | 3,153,049 | 3,055,612 |
Axeon [Member] | ||
Fair Value and Carrying Value of Debt and Note Receivable from Counterparty [Line Items] | ||
Fair value, Axeon Term Loan | 175,717 | 172,123 |
Carrying amount, Axeon Term Loan | $ 170,391 | $ 170,352 |
DERIVATIVES AND RISK MANAGEME39
DERIVATIVES AND RISK MANAGEMENT ACTIVITIES Narrative (Details) bbl in Millions | Sep. 30, 2016USD ($)bbl | Dec. 31, 2015USD ($)bbl | Sep. 30, 2016USD ($) |
Derivative [Line Items] | |||
Margin deposit | $ 1,500,000 | $ 0 | $ 1,500,000 |
Interest rate swaps | Cash Flow Hedges | |||
Derivative [Line Items] | |||
Interest rate swaps interest rate received | receive a rate based on three-month USD LIBOR | ||
Notional amount of forward-starting interest rate swaps | $ 600,000,000 | $ 600,000,000 | $ 600,000,000 |
Commodity contracts | |||
Derivative [Line Items] | |||
Notional amount of commodity contracts, volume (in barrels) | bbl | 5.9 | 8 |
DERIVATIVES AND RISK MANAGEME40
DERIVATIVES AND RISK MANAGEMENT ACTIVITIES Table 1 (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value | ||
Asset Derivatives | $ 8,018 | $ 38,825 |
Liability Derivatives | (59,226) | (26,240) |
Designated as Hedging Instruments | ||
Derivatives, Fair Value | ||
Asset Derivatives | 280 | 4,692 |
Liability Derivatives | (53,453) | (1,475) |
Designated as Hedging Instruments | Commodity contracts | Other current assets | ||
Derivatives, Fair Value | ||
Asset Derivatives | 0 | 1,937 |
Liability Derivatives | 0 | (23) |
Designated as Hedging Instruments | Commodity contracts | Accrued liabilities | ||
Derivatives, Fair Value | ||
Asset Derivatives | 280 | 0 |
Liability Derivatives | (2,543) | 0 |
Designated as Hedging Instruments | Interest rate swaps | Other long-term assets, net | ||
Derivatives, Fair Value | ||
Asset Derivatives | 0 | 2,755 |
Liability Derivatives | 0 | 0 |
Designated as Hedging Instruments | Interest rate swaps | Other long-term liabilities | ||
Derivatives, Fair Value | ||
Asset Derivatives | 0 | 0 |
Liability Derivatives | (50,910) | (1,452) |
Not Designated as Hedging Instruments | ||
Derivatives, Fair Value | ||
Asset Derivatives | 7,738 | 34,133 |
Liability Derivatives | (5,773) | (24,765) |
Not Designated as Hedging Instruments | Commodity contracts | Other current assets | ||
Derivatives, Fair Value | ||
Asset Derivatives | 704 | 34,016 |
Liability Derivatives | 0 | (24,528) |
Not Designated as Hedging Instruments | Commodity contracts | Accrued liabilities | ||
Derivatives, Fair Value | ||
Asset Derivatives | 7,034 | 117 |
Liability Derivatives | $ (5,773) | $ (237) |
DERIVATIVES AND RISK MANAGEME41
DERIVATIVES AND RISK MANAGEMENT ACTIVITIES Table 2 (Details) - Commodity contracts - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Derivative Assets and Liabilities Eligible for Offset, Net [Line Items] | ||
Net amounts of assets presented in the consolidated balance sheets | $ 704 | $ 11,402 |
Net amounts of liabilities presented in the consolidated balance sheets | $ (1,002) | $ (120) |
DERIVATIVES AND RISK MANAGEME42
DERIVATIVES AND RISK MANAGEMENT ACTIVITIES Table 3 (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) to be reclassified during next 12 months, forward-starting interest rate swaps | $ (7,100) | $ (7,100) | ||
Designated as Hedging Instruments | Fair Value Hedges | Commodity contracts | Cost of product sales | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) recognized in income on derivative | 558 | $ 16,005 | (6,246) | $ 11,506 |
Gain (loss) recognized in income on hedged item | 329 | (15,479) | 10,134 | (8,748) |
Gain (loss) recognized in income for ineffective portion | 887 | 526 | 3,888 | 2,758 |
Designated as Hedging Instruments | Cash Flow Hedges | Interest rate swaps | Other comprehensive income | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) recognized in other comprehensive income on derivative (effective portion) | (2,035) | (16,757) | (52,213) | 1,996 |
Designated as Hedging Instruments | Cash Flow Hedges | Interest rate swaps | Interest expense, net | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) reclassified from AOCI into interest expense, net (effective portion) | (2,011) | (2,405) | (6,391) | (7,449) |
Not Designated as Hedging Instruments | Commodity contracts | Cost of product sales | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) recognized in income on derivative | $ (153) | $ 1,151 | $ (157) | $ 1,142 |
RELATED PARTY TRANSACTIONS Tabl
RELATED PARTY TRANSACTIONS Table 1 (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Related Party Transaction [Line Items] | ||||
Operating expenses | $ 0 | $ 34,904 | $ 21,681 | $ 100,761 |
General and administrative expenses | $ 0 | $ 15,144 | $ 10,493 | $ 50,237 |
RELATED PARTY TRANSACTIONS Narr
RELATED PARTY TRANSACTIONS Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | ||
Administrative fees, description | The Amended GP Services Agreement provides that we will furnish administrative services necessary to conduct the business of NuStar GP Holdings. NuStar GP Holdings will compensate us for these services through an annual fee of $1.0 million, subject to adjustment based on the annual merit increase percentage applicable to our employees for the most recently completed fiscal year and for changes in level of service. The Amended GP Services Agreement will terminate on March 1, 2020 and will automatically renew for successive two-year terms, unless terminated by either party. | |
Receivable from related party | $ 83 | $ 0 |
Payable to related party | 0 | 14,799 |
Long-term payable to related party | $ 0 | $ 32,080 |
RELATED PARTY TRANSACTIONS Ta45
RELATED PARTY TRANSACTIONS Table 2 (Details) $ in Thousands | Mar. 01, 2016USD ($) |
Decrease in related party payable: | |
Current | $ 16,014 |
Long-term | 32,656 |
Decrease in related party payable | 48,670 |
Changes to our consolidated balance sheet: | |
Current and long-term assets | 2,154 |
Current liabilities | 5,609 |
Other long-term liabilities | 34,042 |
Limited partners' equity | 2,664 |
Accumulated other comprehensive loss | 4,201 |
Changes to our consolidated balance sheet | $ 48,670 |
EMPLOYEE BENEFIT PLANS Narrativ
EMPLOYEE BENEFIT PLANS Narrative (Details) - USD ($) $ in Millions | Mar. 01, 2016 | Sep. 30, 2016 | Sep. 30, 2016 |
Compensation and Retirement Disclosure [Abstract] | |||
Pension Plan, description | The NuStar Pension Plan (the Pension Plan) is a qualified non-contributory defined benefit pension plan that provides eligible U.S. employees with retirement income as calculated under a cash balance formula. Under the cash balance formula, benefits are based on age, service and interest credits, and employees become fully vested in their benefits upon attaining three years of vesting service. | ||
Pension and OPEB assumptions | We estimate pension and other postretirement benefit obligations and costs from actuarial valuations. The actuarial valuations require the use of certain assumptions, including discount rates, expected long-term rates of return on plan assets and expected rates of compensation increase. The amortization of actuarial gains and losses reflects a corridor based on 10% of the greater of the projected benefit obligation or the market-related value of the pension plan assets. | ||
Thrift Plan, description | The NuStar Thrift Plan (the Thrift Plan) is a qualified defined contribution plan and participation in the Thrift Plan is voluntary and open to substantially all our employees upon their date of hire. Thrift Plan participants can contribute from 1% up to 30% of their total annual compensation to the Thrift Plan in the form of pre-tax and/or after tax employee contributions. We make matching contributions in an amount equal to 100% of each participant’s employee contributions up to a maximum of 6% of the participant’s total annual compensation. | ||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Employer Contributions | $ 15.6 | ||
Pension Plans (The Pension Plan and Excess Pension Plan) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan Obligation Assumed | $ 22.5 | ||
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan Obligation Assumed | $ 10.2 |
EMPLOYEE BENEFIT PLANS Table 1
EMPLOYEE BENEFIT PLANS Table 1 (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Pension Plans (The Pension Plan and Excess Pension Plan) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Fair value of plan assets | $ 87,706 |
Less: Benefit obligation | 109,202 |
Funded status | (21,496) |
Other Postretirement Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Fair value of plan assets | 0 |
Less: Benefit obligation | 10,042 |
Funded status | $ (10,042) |
EMPLOYEE BENEFIT PLANS Table 2
EMPLOYEE BENEFIT PLANS Table 2 (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Pension Plans (The Pension Plan and Excess Pension Plan) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 1,926 | $ 1,919 | $ 5,778 | $ 5,757 |
Interest cost | 1,006 | 1,097 | 3,018 | 3,291 |
Expected return on assets | (1,353) | (1,254) | (4,056) | (3,762) |
Amortization of prior service credit | (516) | (516) | (1,549) | (1,547) |
Amortization of net loss | 273 | 461 | 819 | 1,383 |
Net periodic benefit cost (income) | 1,336 | 1,707 | 4,010 | 5,122 |
Other Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 105 | 118 | 315 | 354 |
Interest cost | 100 | 111 | 300 | 334 |
Expected return on assets | 0 | 0 | 0 | 0 |
Amortization of prior service credit | (286) | (285) | (858) | (857) |
Amortization of net loss | 45 | 67 | 135 | 201 |
Net periodic benefit cost (income) | $ (36) | $ 11 | $ (108) | $ 32 |
UNIT-BASED COMPENSATION Narrati
UNIT-BASED COMPENSATION Narrative (Details) - shares | Mar. 01, 2016 | Sep. 30, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unit-based compensation, number of outstanding awards transferred | 688,647 | |
Restricted units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unit-based compensation, number of outstanding awards transferred | 604,153 | |
Restricted units, domestic employees | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unit-based compensation, vesting period | 5 years | |
Restricted units, non-employees | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unit-based compensation, vesting period | 3 years | |
Restricted units, certain international employees | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unit-based compensation, number of outstanding awards transferred | 49,121 | |
Restricted units, certain international employees | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unit-based compensation, vesting period | 3 years | |
Restricted units, certain international employees | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unit-based compensation, vesting period | 5 years | |
Performance units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unit-based compensation, number of outstanding awards transferred | 35,373 | |
Unit-based compensation, description of performance measure | The objective performance measure is determined each year by the NuStar GP, LLC Compensation Committee for the following year. Our achievement of the performance measure determines the rate at which the performance units convert into our common units, which can range from zero to 200%. | |
Unit-based compensation, terms of performance units | Performance units vest in three annual increments (tranches), based upon our achievement of the performance measure set by the Compensation Committee during the one-year performance periods that end on December 31 of each year following the date of grant. | |
The Amended 2000 LTIP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unit-based compensation, number of units authorized | 3,250,000 | |
Unit-based compensation, number of units available to be awarded | 1,200,261 |
PARTNERS' EQUITY Narrative (Det
PARTNERS' EQUITY Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Equity [Abstract] | ||||
Number of common units issued | 595,050 | |||
Weighted average price per unit issued | $ 47.39 | |||
Net proceeds from issuance | $ 28,285 | |||
Issuance costs | 500 | |||
Contributions from general partner | $ 575 | $ 0 | ||
General partner interest | 2.00% | 2.00% | 2.00% | 2.00% |
Percentage of incentive cash distributions allocated to the general partner | 100.00% |
PARTNERS' EQUITY Table 1 (Detai
PARTNERS' EQUITY Table 1 (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Balance as of January 1, 2016 | $ 1,609,844 | |||
Net income | $ 51,141 | $ 65,016 | 161,059 | $ 247,240 |
Unit-based compensation expense | 5,564 | |||
Other comprehensive loss | (40,606) | |||
Cash distributions to partners | (294,153) | |||
Issuance of common units, including contribution from general partner | 28,285 | |||
Balance as of September 30, 2016 | $ 1,469,993 | $ 1,469,993 |
PARTNERS' EQUITY Table 2 (Detai
PARTNERS' EQUITY Table 2 (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance as of January 1, 2016 | $ (88,794) |
Other comprehensive (loss) income | (40,606) |
Balance as of September 30, 2016 | (129,400) |
Foreign Currency Translation | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance as of January 1, 2016 | (60,826) |
Employee Transfer | 0 |
Deferred income tax adjustments | 0 |
Other comprehensive loss before reclassification adjustments | (270) |
Other comprehensive (loss) income | (270) |
Balance as of September 30, 2016 | (61,096) |
Cash Flow Hedges | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance as of January 1, 2016 | (27,968) |
Employee Transfer | 0 |
Deferred income tax adjustments | 0 |
Other comprehensive loss before reclassification adjustments | (52,213) |
Other comprehensive (loss) income | (45,822) |
Balance as of September 30, 2016 | (73,790) |
Pension and Other Postretirement Benefits | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance as of January 1, 2016 | 0 |
Employee Transfer | 4,201 |
Deferred income tax adjustments | 2,414 |
Other comprehensive loss before reclassification adjustments | 0 |
Other comprehensive (loss) income | 5,486 |
Balance as of September 30, 2016 | 5,486 |
Total | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance as of January 1, 2016 | (88,794) |
Employee Transfer | 4,201 |
Deferred income tax adjustments | 2,414 |
Other comprehensive loss before reclassification adjustments | (52,483) |
Other comprehensive (loss) income | (40,606) |
Balance as of September 30, 2016 | (129,400) |
Operating expense | Foreign Currency Translation | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Reclassification from accumulated other comprehensive income, current period, net of tax | 0 |
Operating expense | Cash Flow Hedges | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Reclassification from accumulated other comprehensive income, current period, net of tax | 0 |
Operating expense | Pension and Other Postretirement Benefits | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Reclassification from accumulated other comprehensive income, current period, net of tax | (839) |
Operating expense | Total | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Reclassification from accumulated other comprehensive income, current period, net of tax | (839) |
General and administrative expense | Foreign Currency Translation | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Reclassification from accumulated other comprehensive income, current period, net of tax | 0 |
General and administrative expense | Cash Flow Hedges | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Reclassification from accumulated other comprehensive income, current period, net of tax | 0 |
General and administrative expense | Pension and Other Postretirement Benefits | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Reclassification from accumulated other comprehensive income, current period, net of tax | (290) |
General and administrative expense | Total | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Reclassification from accumulated other comprehensive income, current period, net of tax | (290) |
Interest expense, net | Foreign Currency Translation | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Reclassification from accumulated other comprehensive income, current period, net of tax | 0 |
Interest expense, net | Cash Flow Hedges | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Reclassification from accumulated other comprehensive income, current period, net of tax | 6,391 |
Interest expense, net | Pension and Other Postretirement Benefits | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Reclassification from accumulated other comprehensive income, current period, net of tax | 0 |
Interest expense, net | Total | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Reclassification from accumulated other comprehensive income, current period, net of tax | $ 6,391 |
PARTNERS' EQUITY Table 3 (Detai
PARTNERS' EQUITY Table 3 (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net Income Allocation [Abstract] | ||||
Net income applicable to general partner and limited partners' interest | $ 51,141 | $ 65,016 | $ 161,059 | $ 247,240 |
Less general partner incentive distribution | 10,890 | 10,805 | 32,500 | 32,415 |
Net income after general partner incentive distribution | $ 40,251 | $ 54,211 | $ 128,559 | $ 214,825 |
General partner interest | 2.00% | 2.00% | 2.00% | 2.00% |
General partner allocation of net income after general partner incentive distribution | $ 805 | $ 1,084 | $ 2,571 | $ 4,297 |
General partner incentive distribution | 10,890 | 10,805 | 32,500 | 32,415 |
Net income applicable to general partner | $ 11,695 | $ 11,889 | $ 35,071 | $ 36,712 |
PARTNERS' EQUITY Table 4 (Detai
PARTNERS' EQUITY Table 4 (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Distributions Made to Limited Partners and General Partner [Line Items] | |||||||
General partner interest | $ 1,976 | $ 1,961 | $ 5,898 | $ 5,883 | |||
General partner incentive distribution | 10,890 | 10,805 | 32,500 | 32,415 | |||
Total general partner distribution | 12,866 | 12,766 | 38,398 | 38,298 | |||
Limited partners' distribution | 85,943 | 85,285 | 256,513 | 255,855 | |||
Total cash distributions | $ 98,809 | $ 98,051 | $ 98,051 | $ 98,051 | $ 98,051 | $ 294,911 | $ 294,153 |
Cash distributions per unit applicable to limited partners | $ 1.095 | $ 1.095 | $ 1.095 | $ 1.095 | $ 1.095 | $ 3.285 | $ 3.285 |
PARTNERS' EQUITY Table 5 (Detai
PARTNERS' EQUITY Table 5 (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 28, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 |
Distribution Made to Limited Partner [Line Items] | ||||||||
Cash distributions per unit applicable to limited partners | $ 1.095 | $ 1.095 | $ 1.095 | $ 1.095 | $ 1.095 | $ 3.285 | $ 3.285 | |
Total cash distributions (distribution earned) | $ 98,809 | $ 98,051 | $ 98,051 | $ 98,051 | $ 98,051 | $ 294,911 | $ 294,153 | |
Distribution date of record (distribution earned) | Nov. 8, 2016 | Aug. 9, 2016 | May 9, 2016 | Feb. 8, 2016 | ||||
Distribution payment date (distribution earned) | Nov. 14, 2016 | Aug. 12, 2016 | May 13, 2016 | Feb. 12, 2016 | ||||
Subsequent Event [Member] | ||||||||
Distribution Made to Limited Partner [Line Items] | ||||||||
Distribution anouncement date (distribution earned) | Oct. 28, 2016 |
NET INCOME PER UNIT Table (Deta
NET INCOME PER UNIT Table (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to NuStar Energy L.P. | $ 51,141 | $ 65,016 | $ 161,059 | $ 247,240 |
Less: Distributions to general partner (including incentive distribution rights) | 12,866 | 12,766 | 38,398 | 38,298 |
Less: Distributions to limited partner | 85,943 | 85,285 | 256,513 | 255,855 |
Less: DERs to restricted units | 650 | 0 | 1,969 | 0 |
Distributions in excess of earnings | (48,318) | (33,035) | (135,821) | (46,913) |
Net income attributable to limited partner units: | ||||
Distributions to limited partner | 85,943 | 85,285 | 256,513 | 255,855 |
Allocation of distributions in excess of earnings | (47,351) | (32,374) | (133,103) | (45,974) |
Total | $ 38,592 | $ 52,911 | $ 123,410 | $ 209,881 |
Basic weighted-average limited partner units outstanding | 78,031,053 | 77,886,078 | 77,934,802 | 77,886,078 |
Diluted units outstanding: | ||||
Basic weighted-average limited partner units outstanding | 78,031,053 | 77,886,078 | 77,934,802 | 77,886,078 |
Effect of dilutive participating securities | 31,836 | 0 | 46,497 | 0 |
Diluted weighted-average limited partner units outstanding | 78,062,889 | 77,886,078 | 77,981,299 | 77,886,078 |
Basic net income per unit applicable to limited partners | $ 0.49 | $ 0.68 | $ 1.58 | $ 2.69 |
Diluted net income per unit applicable to limited partners | $ 0.49 | $ 0.68 | $ 1.58 | $ 2.69 |
STATEMENTS OF CASH FLOWS Table
STATEMENTS OF CASH FLOWS Table 1 (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Decrease (increase) in current assets: | ||
Accounts receivable | $ (15,200) | $ 75,532 |
Inventories | 3,767 | 1,654 |
Other current assets | 4,809 | 1,660 |
Increase (decrease) in current liabilities: | ||
Accounts payable | 7,706 | (45,626) |
Payable to related party, net | 806 | 743 |
Accrued interest payable | (6,672) | (5,424) |
Accrued liabilities | (7,477) | (12,338) |
Taxes other than income tax | 3,670 | 3,239 |
Income tax payable | (3,886) | 363 |
Changes in current assets and current liabilities | $ (12,477) | $ 19,803 |
STATEMENTS OF CASH FLOWS Tabl58
STATEMENTS OF CASH FLOWS Table 2 (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Cash Flows [Abstract] | ||
Cash paid for interest, net of amount capitalized | $ 112,796 | $ 105,340 |
Cash paid for income taxes, net of tax refunds received | $ 9,873 | $ 8,987 |
SEGMENT INFORMATION Table 1 (De
SEGMENT INFORMATION Table 1 (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues: | ||||
Revenues | $ 441,418 | $ 493,566 | $ 1,284,925 | $ 1,619,121 |
Operating income: | ||||
General and administrative expenses | 26,957 | 23,679 | 73,399 | 75,425 |
Other depreciation and amortization expense | 53,946 | 52,301 | 160,739 | 157,523 |
Operating income (loss) | 87,954 | 100,994 | 273,736 | 292,680 |
Pipeline Segment | ||||
Revenues: | ||||
Revenues | 122,481 | 131,395 | 362,929 | 378,030 |
Storage Segment | ||||
Revenues: | ||||
Revenues | 157,767 | 162,103 | 462,040 | 470,079 |
Storage Segment | Third Party Revenue [Member] | ||||
Revenues: | ||||
Revenues | 152,746 | 155,475 | 445,497 | 450,372 |
Storage Segment | Intersegment Revenue [Member] | ||||
Revenues: | ||||
Revenues | 5,021 | 6,628 | 16,543 | 19,707 |
Fuels Marketing Segment | ||||
Revenues: | ||||
Revenues | 166,191 | 206,696 | 476,499 | 790,719 |
Operating Segments [Member] | ||||
Operating income: | ||||
Operating income (loss) | 117,004 | 126,702 | 353,517 | 374,508 |
Operating Segments [Member] | Pipeline Segment | ||||
Operating income: | ||||
Operating income (loss) | 58,922 | 68,536 | 186,739 | 201,996 |
Operating Segments [Member] | Storage Segment | ||||
Operating income: | ||||
Operating income (loss) | 58,420 | 59,986 | 166,496 | 161,715 |
Operating Segments [Member] | Fuels Marketing Segment | ||||
Operating income: | ||||
Operating income (loss) | (337) | (1,819) | 282 | 10,756 |
Intersegment Eliminations [Member] | ||||
Revenues: | ||||
Revenues | (5,021) | (6,628) | (16,543) | (19,707) |
Operating income: | ||||
Operating income (loss) | (1) | (1) | 0 | 41 |
Corporate, Non-Segment [Member] | ||||
Operating income: | ||||
General and administrative expenses | 26,957 | 23,679 | 73,399 | 75,425 |
Other depreciation and amortization expense | $ 2,093 | $ 2,029 | $ 6,382 | $ 6,403 |
SEGMENT INFORMATION Table 2 (De
SEGMENT INFORMATION Table 2 (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Segment Information | ||
Total consolidated assets | $ 4,990,418 | $ 5,125,525 |
Operating Segments [Member] | ||
Segment Information | ||
Total consolidated assets | 4,620,745 | 4,647,353 |
Operating Segments [Member] | Pipeline Segment | ||
Segment Information | ||
Total consolidated assets | 2,014,710 | 2,014,098 |
Operating Segments [Member] | Storage Segment | ||
Segment Information | ||
Total consolidated assets | 2,462,597 | 2,476,389 |
Operating Segments [Member] | Fuels Marketing Segment | ||
Segment Information | ||
Total consolidated assets | 143,438 | 156,866 |
Operating Segments [Member] | Other partnership assets | ||
Segment Information | ||
Total consolidated assets | $ 369,673 | $ 478,172 |
CONDENSED CONSOLIDATING FINAN61
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS Table 1 (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||||
Cash and cash equivalents | $ 32,662 | $ 118,862 | $ 116,425 | $ 87,912 |
Receivables, net | 160,061 | 145,064 | ||
Inventories | 35,051 | 38,749 | ||
Other current assets | 26,231 | 31,176 | ||
Intercompany receivable | 0 | 0 | ||
Total current assets | 254,005 | 333,851 | ||
Property, plant and equipment, net | 3,672,889 | 3,683,571 | ||
Intangible assets, net | 101,630 | 112,011 | ||
Goodwill | 696,637 | 696,637 | ||
Investment in wholly owned subsidiaries | 0 | 0 | ||
Deferred income tax asset | 2,186 | 2,858 | ||
Other long-term assets, net | 263,071 | 296,597 | ||
Total assets | 4,990,418 | 5,125,525 | ||
Liabilities and Partners' Equity | ||||
Payables | 105,311 | 139,946 | ||
Short-term debt | 7,000 | 84,000 | ||
Accrued interest payable | 27,614 | 34,286 | ||
Accrued liabilities | 52,520 | 55,194 | ||
Taxes other than income tax | 16,621 | 12,810 | ||
Income tax payable | 2,064 | 5,977 | ||
Intercompany payable | 0 | 0 | ||
Total current liabilities | 211,130 | 332,213 | ||
Long-term debt | 3,153,049 | 3,055,612 | ||
Long-term payable to related party | 0 | 32,080 | ||
Deferred income tax liability | 26,635 | 24,810 | ||
Other long-term liabilities | 129,611 | 70,966 | ||
Total partners' equity | 1,469,993 | 1,609,844 | ||
Total liabilities and partners' equity | 4,990,418 | 5,125,525 | ||
Eliminations | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Receivables, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Other current assets | (1) | 0 | ||
Intercompany receivable | (1,616,460) | (1,610,370) | ||
Total current assets | (1,616,461) | (1,610,370) | ||
Property, plant and equipment, net | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Investment in wholly owned subsidiaries | (4,297,823) | (4,200,728) | ||
Deferred income tax asset | 0 | (1,179) | ||
Other long-term assets, net | 0 | 0 | ||
Total assets | (5,914,284) | (5,812,277) | ||
Liabilities and Partners' Equity | ||||
Payables | 0 | 0 | ||
Short-term debt | 0 | 0 | ||
Accrued interest payable | 0 | 0 | ||
Accrued liabilities | 0 | 0 | ||
Taxes other than income tax | 0 | 0 | ||
Income tax payable | (1) | 0 | ||
Intercompany payable | (1,616,460) | (1,610,370) | ||
Total current liabilities | (1,616,461) | (1,610,370) | ||
Long-term debt | 0 | 0 | ||
Long-term payable to related party | 0 | |||
Deferred income tax liability | 0 | (1,179) | ||
Other long-term liabilities | 0 | 0 | ||
Total partners' equity | (4,297,823) | (4,200,728) | ||
Total liabilities and partners' equity | (5,914,284) | (5,812,277) | ||
NuStar Energy | ||||
Assets | ||||
Cash and cash equivalents | 811 | 885 | 885 | 923 |
Receivables, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Other current assets | 107 | 140 | ||
Intercompany receivable | 0 | 0 | ||
Total current assets | 918 | 1,025 | ||
Property, plant and equipment, net | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Investment in wholly owned subsidiaries | 2,073,996 | 2,205,904 | ||
Deferred income tax asset | 0 | 0 | ||
Other long-term assets, net | 1,273 | 933 | ||
Total assets | 2,076,187 | 2,207,862 | ||
Liabilities and Partners' Equity | ||||
Payables | 29 | 12 | ||
Short-term debt | 0 | 0 | ||
Accrued interest payable | 0 | 0 | ||
Accrued liabilities | 683 | 723 | ||
Taxes other than income tax | 62 | 126 | ||
Income tax payable | 0 | 0 | ||
Intercompany payable | 476,020 | 508,363 | ||
Total current liabilities | 476,794 | 509,224 | ||
Long-term debt | 0 | 0 | ||
Long-term payable to related party | 0 | |||
Deferred income tax liability | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Total partners' equity | 1,599,393 | 1,698,638 | ||
Total liabilities and partners' equity | 2,076,187 | 2,207,862 | ||
NuStar Logistics | ||||
Assets | ||||
Cash and cash equivalents | 3 | 4 | 931 | 6 |
Receivables, net | 257 | 419 | ||
Inventories | 2,285 | 1,776 | ||
Other current assets | 13,749 | 11,026 | ||
Intercompany receivable | 1,495,783 | 1,610,370 | ||
Total current assets | 1,512,077 | 1,623,595 | ||
Property, plant and equipment, net | 1,892,540 | 1,915,370 | ||
Intangible assets, net | 43,830 | 48,961 | ||
Goodwill | 149,453 | 149,453 | ||
Investment in wholly owned subsidiaries | 43,185 | 48,547 | ||
Deferred income tax asset | 0 | 0 | ||
Other long-term assets, net | 222,491 | 255,957 | ||
Total assets | 3,863,576 | 4,041,883 | ||
Liabilities and Partners' Equity | ||||
Payables | 19,939 | 52,650 | ||
Short-term debt | 7,000 | 84,000 | ||
Accrued interest payable | 27,597 | 34,271 | ||
Accrued liabilities | 7,930 | 32,816 | ||
Taxes other than income tax | 6,976 | 6,452 | ||
Income tax payable | 540 | 1,362 | ||
Intercompany payable | 0 | 0 | ||
Total current liabilities | 69,982 | 211,551 | ||
Long-term debt | 3,110,288 | 3,002,743 | ||
Long-term payable to related party | 26,638 | |||
Deferred income tax liability | 1,862 | 1,143 | ||
Other long-term liabilities | 80,608 | 37,209 | ||
Total partners' equity | 600,836 | 762,599 | ||
Total liabilities and partners' equity | 3,863,576 | 4,041,883 | ||
NuPOP | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Receivables, net | 0 | 0 | ||
Inventories | 3,514 | 3,648 | ||
Other current assets | 1,496 | 497 | ||
Intercompany receivable | 0 | 0 | ||
Total current assets | 5,010 | 4,145 | ||
Property, plant and equipment, net | 591,145 | 570,415 | ||
Intangible assets, net | 0 | 0 | ||
Goodwill | 170,652 | 170,652 | ||
Investment in wholly owned subsidiaries | 1,281,325 | 1,031,162 | ||
Deferred income tax asset | 0 | 0 | ||
Other long-term assets, net | 26,329 | 26,329 | ||
Total assets | 2,074,461 | 1,802,703 | ||
Liabilities and Partners' Equity | ||||
Payables | 12,456 | 11,193 | ||
Short-term debt | 0 | 0 | ||
Accrued interest payable | 0 | 0 | ||
Accrued liabilities | 9,528 | 5,753 | ||
Taxes other than income tax | 4,604 | 3,325 | ||
Income tax payable | 0 | 9 | ||
Intercompany payable | 1,140,440 | 858,018 | ||
Total current liabilities | 1,167,028 | 878,298 | ||
Long-term debt | 0 | 0 | ||
Long-term payable to related party | 0 | |||
Deferred income tax liability | 13 | 36 | ||
Other long-term liabilities | 8,131 | 9,294 | ||
Total partners' equity | 899,289 | 915,075 | ||
Total liabilities and partners' equity | 2,074,461 | 1,802,703 | ||
Non-Guarantor Subsidiaries | ||||
Assets | ||||
Cash and cash equivalents | 31,848 | 117,973 | $ 114,609 | $ 86,983 |
Receivables, net | 159,804 | 144,645 | ||
Inventories | 29,252 | 33,325 | ||
Other current assets | 10,880 | 19,513 | ||
Intercompany receivable | 120,677 | 0 | ||
Total current assets | 352,461 | 315,456 | ||
Property, plant and equipment, net | 1,189,204 | 1,197,786 | ||
Intangible assets, net | 57,800 | 63,050 | ||
Goodwill | 376,532 | 376,532 | ||
Investment in wholly owned subsidiaries | 899,317 | 915,115 | ||
Deferred income tax asset | 2,186 | 4,037 | ||
Other long-term assets, net | 12,978 | 13,378 | ||
Total assets | 2,890,478 | 2,885,354 | ||
Liabilities and Partners' Equity | ||||
Payables | 72,887 | 76,091 | ||
Short-term debt | 0 | 0 | ||
Accrued interest payable | 17 | 15 | ||
Accrued liabilities | 34,379 | 15,902 | ||
Taxes other than income tax | 4,979 | 2,907 | ||
Income tax payable | 1,525 | 4,606 | ||
Intercompany payable | 0 | 243,989 | ||
Total current liabilities | 113,787 | 343,510 | ||
Long-term debt | 42,761 | 52,869 | ||
Long-term payable to related party | 5,442 | |||
Deferred income tax liability | 24,760 | 24,810 | ||
Other long-term liabilities | 40,872 | 24,463 | ||
Total partners' equity | 2,668,298 | 2,434,260 | ||
Total liabilities and partners' equity | $ 2,890,478 | $ 2,885,354 |
CONDENSED CONSOLIDATING FINAN62
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS Table 2 (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | $ 441,418 | $ 493,566 | $ 1,284,925 | $ 1,619,121 |
Costs and expenses | 353,464 | 392,572 | 1,011,189 | 1,326,441 |
Operating (loss) income | 87,954 | 100,994 | 273,736 | 292,680 |
Equity in earnings (loss) of subsidiaries | 0 | 0 | 0 | 0 |
Interest (expense) income, net | (35,022) | (33,448) | (103,374) | (98,309) |
Other income (expense), net | 362 | 1,776 | (10) | 61,892 |
Income from continuing operations before income tax expense | 53,294 | 69,322 | 170,352 | 256,263 |
Income tax expense (benefit) | 2,153 | 4,306 | 9,293 | 9,797 |
Income from continuing operations | 51,141 | 65,016 | 161,059 | 246,466 |
Income from discontinued operations, net of tax | 0 | 0 | 0 | 774 |
Net income | 51,141 | 65,016 | 161,059 | 247,240 |
Comprehensive income (loss) | 48,652 | 38,878 | 120,453 | 231,843 |
Eliminations | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | (361) | (370) | (1,073) | (1,309) |
Costs and expenses | (361) | (369) | (1,073) | (1,351) |
Operating (loss) income | 0 | (1) | 0 | 42 |
Equity in earnings (loss) of subsidiaries | (120,377) | (115,097) | (359,453) | (518,133) |
Interest (expense) income, net | 0 | 0 | 0 | 0 |
Other income (expense), net | 0 | 0 | 0 | 0 |
Income from continuing operations before income tax expense | (120,377) | (115,098) | (359,453) | (518,091) |
Income tax expense (benefit) | 0 | 0 | 0 | 0 |
Income from continuing operations | (518,091) | |||
Income from discontinued operations, net of tax | 0 | |||
Net income | (120,377) | (115,098) | (359,453) | (518,091) |
Comprehensive income (loss) | (120,377) | (115,098) | (359,453) | (518,091) |
NuStar Energy | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Costs and expenses | 252 | 428 | 1,204 | 1,356 |
Operating (loss) income | (252) | (428) | (1,204) | (1,356) |
Equity in earnings (loss) of subsidiaries | 51,397 | 65,444 | 162,248 | 248,596 |
Interest (expense) income, net | 0 | 0 | 0 | 0 |
Other income (expense), net | (4) | 0 | 18 | 0 |
Income from continuing operations before income tax expense | 51,141 | 65,016 | 161,062 | 247,240 |
Income tax expense (benefit) | 0 | 0 | 3 | 0 |
Income from continuing operations | 247,240 | |||
Income from discontinued operations, net of tax | 0 | |||
Net income | 51,141 | 65,016 | 161,059 | 247,240 |
Comprehensive income (loss) | 51,141 | 65,016 | 161,059 | 247,240 |
NuStar Logistics | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 131,696 | 140,492 | 383,836 | 411,698 |
Costs and expenses | 79,443 | 73,274 | 221,839 | 222,515 |
Operating (loss) income | 52,253 | 67,218 | 161,997 | 189,183 |
Equity in earnings (loss) of subsidiaries | (44) | (2,730) | (5,362) | (8,118) |
Interest (expense) income, net | (43,832) | (35,495) | (124,619) | (100,448) |
Other income (expense), net | 378 | 500 | 400 | 1,175 |
Income from continuing operations before income tax expense | 8,755 | 29,493 | 32,416 | 81,792 |
Income tax expense (benefit) | 588 | 334 | 1,281 | 390 |
Income from continuing operations | 81,402 | |||
Income from discontinued operations, net of tax | 0 | |||
Net income | 8,167 | 29,159 | 31,135 | 81,402 |
Comprehensive income (loss) | 8,143 | 14,807 | (14,687) | 90,847 |
NuPOP | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 53,158 | 53,988 | 159,272 | 155,284 |
Costs and expenses | 37,957 | 34,344 | 104,958 | 99,208 |
Operating (loss) income | 15,201 | 19,644 | 54,314 | 56,076 |
Equity in earnings (loss) of subsidiaries | 25,819 | 16,113 | 71,273 | 110,448 |
Interest (expense) income, net | 2,165 | 505 | 5,699 | 679 |
Other income (expense), net | (8) | 7 | (18) | 16 |
Income from continuing operations before income tax expense | 43,177 | 36,269 | 131,268 | 167,219 |
Income tax expense (benefit) | (29) | 2 | (24) | 20 |
Income from continuing operations | 167,199 | |||
Income from discontinued operations, net of tax | 0 | |||
Net income | 43,206 | 36,267 | 131,292 | 167,199 |
Comprehensive income (loss) | 43,206 | 36,267 | 131,292 | 167,199 |
Non-Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 256,925 | 299,456 | 742,890 | 1,053,448 |
Costs and expenses | 236,173 | 284,895 | 684,261 | 1,004,713 |
Operating (loss) income | 20,752 | 14,561 | 58,629 | 48,735 |
Equity in earnings (loss) of subsidiaries | 43,205 | 36,270 | 131,294 | 167,207 |
Interest (expense) income, net | 6,645 | 1,542 | 15,546 | 1,460 |
Other income (expense), net | (4) | 1,269 | (410) | 60,701 |
Income from continuing operations before income tax expense | 70,598 | 53,642 | 205,059 | 278,103 |
Income tax expense (benefit) | 1,594 | 3,970 | 8,033 | 9,387 |
Income from continuing operations | 268,716 | |||
Income from discontinued operations, net of tax | 774 | |||
Net income | 69,004 | 49,672 | 197,026 | 269,490 |
Comprehensive income (loss) | $ 66,539 | $ 37,886 | $ 202,242 | $ 244,648 |
CONDENSED CONSOLIDATING FINAN63
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS Table 3 (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net cash provided by operating activities | $ 314,549 | $ 376,124 |
Cash flows from investing activities: | ||
Capital expenditures | (145,414) | (240,671) |
Change in accounts payable related to capital expenditures | (15,504) | (7,802) |
Acquisitions | 0 | (142,500) |
Investment in other long-term assets | 0 | (3,587) |
Proceeds from sale or disposition of assets | 0 | 17,125 |
Investment in subsidiaries | 0 | |
Net cash used in investing activities | (160,918) | (377,435) |
Cash flows from financing activities: | ||
Debt borrowings | 985,982 | 1,369,779 |
Debt repayments | (949,750) | (1,022,410) |
Issuance of common units, net of issuance costs | 27,710 | 0 |
General partner contribution | 575 | 0 |
Distributions to unitholders and general partner | (294,153) | (294,153) |
Contributions from (distributions to) affiliates | 0 | |
Net intercompany activity | 0 | 0 |
Other, net | (13,599) | (13,073) |
Net cash (used in) provided by financing activities | (243,235) | 40,143 |
Effect of foreign exchange rate changes on cash | 3,404 | (10,319) |
Net increase (decrease) in cash and cash equivalents | (86,200) | 28,513 |
Cash and cash equivalents as of the beginning of the period | 118,862 | 87,912 |
Cash and cash equivalents as of the end of the period | 32,662 | 116,425 |
Eliminations | ||
Cash flows from operating activities: | ||
Net cash provided by operating activities | (475,256) | (441,245) |
Cash flows from investing activities: | ||
Capital expenditures | 0 | 0 |
Change in accounts payable related to capital expenditures | 0 | 0 |
Acquisitions | 0 | |
Investment in other long-term assets | 0 | |
Proceeds from sale or disposition of assets | 0 | |
Investment in subsidiaries | 212,900 | |
Net cash used in investing activities | 212,900 | 0 |
Cash flows from financing activities: | ||
Debt borrowings | 0 | 0 |
Debt repayments | 0 | 0 |
Issuance of common units, net of issuance costs | 0 | |
General partner contribution | 0 | |
Distributions to unitholders and general partner | 441,246 | 441,245 |
Contributions from (distributions to) affiliates | (178,890) | |
Net intercompany activity | 0 | 0 |
Other, net | 0 | 0 |
Net cash (used in) provided by financing activities | 262,356 | 441,245 |
Effect of foreign exchange rate changes on cash | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents as of the beginning of the period | 0 | 0 |
Cash and cash equivalents as of the end of the period | 0 | 0 |
NuStar Energy | ||
Cash flows from operating activities: | ||
Net cash provided by operating activities | 292,572 | 292,631 |
Cash flows from investing activities: | ||
Capital expenditures | 0 | 0 |
Change in accounts payable related to capital expenditures | 0 | 0 |
Acquisitions | 0 | |
Investment in other long-term assets | 0 | |
Proceeds from sale or disposition of assets | 0 | |
Investment in subsidiaries | 0 | |
Net cash used in investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Debt borrowings | 0 | 0 |
Debt repayments | 0 | 0 |
Issuance of common units, net of issuance costs | 27,710 | |
General partner contribution | 575 | |
Distributions to unitholders and general partner | (294,153) | (294,153) |
Contributions from (distributions to) affiliates | 0 | |
Net intercompany activity | (25,372) | 1,484 |
Other, net | (1,406) | 0 |
Net cash (used in) provided by financing activities | (292,646) | (292,669) |
Effect of foreign exchange rate changes on cash | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | (74) | (38) |
Cash and cash equivalents as of the beginning of the period | 885 | 923 |
Cash and cash equivalents as of the end of the period | 811 | 885 |
NuStar Logistics | ||
Cash flows from operating activities: | ||
Net cash provided by operating activities | 97,253 | 157,684 |
Cash flows from investing activities: | ||
Capital expenditures | (53,491) | (156,510) |
Change in accounts payable related to capital expenditures | (15,086) | (11,797) |
Acquisitions | 0 | |
Investment in other long-term assets | 0 | |
Proceeds from sale or disposition of assets | 10,318 | |
Investment in subsidiaries | 0 | |
Net cash used in investing activities | (68,577) | (157,989) |
Cash flows from financing activities: | ||
Debt borrowings | 965,082 | 1,280,879 |
Debt repayments | (918,550) | (990,410) |
Issuance of common units, net of issuance costs | 0 | |
General partner contribution | 0 | |
Distributions to unitholders and general partner | (147,076) | (147,076) |
Contributions from (distributions to) affiliates | 0 | |
Net intercompany activity | 75,165 | (134,701) |
Other, net | (3,298) | (7,462) |
Net cash (used in) provided by financing activities | (28,677) | 1,230 |
Effect of foreign exchange rate changes on cash | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | (1) | 925 |
Cash and cash equivalents as of the beginning of the period | 4 | 6 |
Cash and cash equivalents as of the end of the period | 3 | 931 |
NuPOP | ||
Cash flows from operating activities: | ||
Net cash provided by operating activities | 118,436 | 89,173 |
Cash flows from investing activities: | ||
Capital expenditures | (43,329) | (30,846) |
Change in accounts payable related to capital expenditures | 2,645 | 4,707 |
Acquisitions | 0 | |
Investment in other long-term assets | 0 | |
Proceeds from sale or disposition of assets | 20 | |
Investment in subsidiaries | (212,900) | |
Net cash used in investing activities | (253,584) | (26,119) |
Cash flows from financing activities: | ||
Debt borrowings | 0 | 0 |
Debt repayments | 0 | 0 |
Issuance of common units, net of issuance costs | 0 | |
General partner contribution | 0 | |
Distributions to unitholders and general partner | (147,077) | (147,077) |
Contributions from (distributions to) affiliates | 0 | |
Net intercompany activity | 282,226 | 84,023 |
Other, net | (1) | 0 |
Net cash (used in) provided by financing activities | 135,148 | (63,054) |
Effect of foreign exchange rate changes on cash | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents as of the beginning of the period | 0 | 0 |
Cash and cash equivalents as of the end of the period | 0 | 0 |
Non-Guarantor Subsidiaries | ||
Cash flows from operating activities: | ||
Net cash provided by operating activities | 281,544 | 277,881 |
Cash flows from investing activities: | ||
Capital expenditures | (48,594) | (53,315) |
Change in accounts payable related to capital expenditures | (3,063) | (712) |
Acquisitions | (142,500) | |
Investment in other long-term assets | (3,587) | |
Proceeds from sale or disposition of assets | 6,787 | |
Investment in subsidiaries | 0 | |
Net cash used in investing activities | (51,657) | (193,327) |
Cash flows from financing activities: | ||
Debt borrowings | 20,900 | 88,900 |
Debt repayments | (31,200) | (32,000) |
Issuance of common units, net of issuance costs | 0 | |
General partner contribution | 0 | |
Distributions to unitholders and general partner | (147,093) | (147,092) |
Contributions from (distributions to) affiliates | 178,890 | |
Net intercompany activity | (332,019) | 49,194 |
Other, net | (8,894) | (5,611) |
Net cash (used in) provided by financing activities | (319,416) | (46,609) |
Effect of foreign exchange rate changes on cash | 3,404 | (10,319) |
Net increase (decrease) in cash and cash equivalents | (86,125) | 27,626 |
Cash and cash equivalents as of the beginning of the period | 117,973 | 86,983 |
Cash and cash equivalents as of the end of the period | $ 31,848 | $ 114,609 |
SUBSEQUENT EVENT Narrative (Det
SUBSEQUENT EVENT Narrative (Details) - Subsequent Event [Member] $ in Millions | Oct. 14, 2016USD ($)bbl |
Subsequent Event [Line Items] | |
Purchase price of assets to be acquired, net | $ | $ 93 |
Crude storage capacity, in barrels | 900,000 |
Refined product storage capacity, in barrels | 250,000 |