CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | CONDENSED CONSOLIDATING FINANCIAL STATEMENTS NuStar Energy has no operations, and its assets consist mainly of its 100% indirectly owned subsidiaries, NuStar Logistics and NuPOP. 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 March 31, 2019 (Thousands of Dollars) NuStar Energy NuStar Logistics NuPOP Non-Guarantor Subsidiaries Eliminations Consolidated Assets Cash and cash equivalents $ 1,363 $ 1,240 $ — $ 13,219 $ — $ 15,822 Receivables, net — 427 1,071 162,241 — 163,739 Inventories — 1,890 5,563 17,570 — 25,023 Prepaid and other current assets 98 17,932 899 2,432 — 21,361 Intercompany receivable — 1,380,677 — 458,238 (1,838,915 ) — Total current assets 1,461 1,402,166 7,533 653,700 (1,838,915 ) 225,945 Property, plant and equipment, net — 1,972,639 608,975 1,562,651 — 4,144,265 Intangible assets, net — 46,751 — 673,449 — 720,200 Goodwill — 149,453 170,652 685,748 — 1,005,853 Investment in wholly owned subsidiaries 2,983,036 1,751,576 1,130,709 536,042 (6,401,363 ) — Other long-term assets, net 329 113,954 32,779 73,574 — 220,636 Total assets $ 2,984,826 $ 5,436,539 $ 1,950,648 $ 4,185,164 $ (8,240,278 ) $ 6,316,899 Liabilities, Mezzanine Equity and Partners’ Equity Accounts payable $ 5,996 $ 52,993 $ 5,258 $ 112,624 $ — $ 176,871 Short-term debt and current portion of finance leases — 9,302 17 16 — 9,335 Accrued interest payable — 31,121 — 41 — 31,162 Accrued liabilities 895 27,683 8,805 45,351 — 82,734 Taxes other than income tax 42 4,967 6,371 4,759 — 16,139 Income tax payable — 573 2 4,570 — 5,145 Intercompany payable 461,219 — 1,377,696 — (1,838,915 ) — Total current liabilities 468,152 126,639 1,398,149 167,361 (1,838,915 ) 321,386 Long-term debt — 3,281,179 66 51,975 — 3,333,220 Deferred income tax liability — 1,675 9 10,103 — 11,787 Other long-term liabilities — 83,436 16,534 93,566 — 193,536 Series D preferred units 568,293 — — — — 568,293 Total partners’ equity 1,948,381 1,943,610 535,890 3,862,159 (6,401,363 ) 1,888,677 Total liabilities, mezzanine equity and partners’ equity $ 2,984,826 $ 5,436,539 $ 1,950,648 $ 4,185,164 $ (8,240,278 ) $ 6,316,899 Condensed Consolidating Balance Sheets December 31, 2018 (Thousands of Dollars) NuStar Energy NuStar Logistics NuPOP Non-Guarantor Subsidiaries Eliminations Consolidated Assets Cash and cash equivalents $ 1,255 $ 51 $ — $ 12,338 $ — $ 13,644 Receivables, net — 2,212 — 146,096 — 148,308 Inventories — 1,741 5,237 15,735 — 22,713 Prepaid and other current assets 61 14,422 908 2,102 — 17,493 Intercompany receivable — 1,327,833 — 500,583 (1,828,416 ) — Total current assets 1,316 1,346,259 6,145 676,854 (1,828,416 ) 202,158 Property, plant and equipment, net — 1,858,264 615,549 1,814,809 — 4,288,622 Intangible assets, net — 49,107 — 683,949 — 733,056 Goodwill — 149,453 170,652 716,871 — 1,036,976 Investment in wholly owned subsidiaries 3,355,636 1,750,256 1,425,283 857,485 (7,388,660 ) — Other long-term assets, net 304 54,429 26,716 6,879 — 88,328 Total assets $ 3,357,256 $ 5,207,768 $ 2,244,345 $ 4,756,847 $ (9,217,076 ) $ 6,349,140 Liabilities, Mezzanine Equity and Partners’ Equity Accounts payable $ 6,460 $ 39,680 $ 6,331 $ 90,650 $ — $ 143,121 Short-term debt — 18,500 — — — 18,500 Accrued interest payable — 36,253 — 40 — 36,293 Accrued liabilities 1,280 24,858 8,082 67,773 — 101,993 Taxes other than income tax 125 7,285 4,718 6,955 — 19,083 Income tax payable — 457 2 3,986 — 4,445 Intercompany payable 472,790 — 1,355,626 — (1,828,416 ) — Total current liabilities 480,655 127,033 1,374,759 169,404 (1,828,416 ) 323,435 Long-term debt — 3,050,531 — 61,465 — 3,111,996 Deferred income tax liability — 1,675 9 10,744 — 12,428 Other long-term liabilities — 28,392 12,348 38,818 — 79,558 Series D preferred units 563,992 — — — — 563,992 Total partners’ equity 2,312,609 2,000,137 857,229 4,476,416 (7,388,660 ) 2,257,731 Total liabilities, mezzanine equity and partners’ equity $ 3,357,256 $ 5,207,768 $ 2,244,345 $ 4,756,847 $ (9,217,076 ) $ 6,349,140 Condensed Consolidating Statements of Comprehensive Loss For the Three Months Ended March 31, 2019 (Thousands of Dollars) NuStar Energy NuStar Logistics NuPOP Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ 117,555 $ 58,353 $ 310,748 $ (187 ) $ 486,469 Costs and expenses 676 77,411 36,050 605,618 (187 ) 719,568 Operating (loss) income (676 ) 40,144 22,303 (294,870 ) — (233,099 ) Equity in (loss) earnings of subsidiaries (277,295 ) 1,339 (294,048 ) (274,174 ) 844,178 — Interest income (expense), net 108 (45,456 ) (1,933 ) 3,013 — (44,268 ) Other income (expense), net — 754 177 (144 ) — 787 Loss before income tax expense (277,863 ) (3,219 ) (273,501 ) (566,175 ) 844,178 (276,580 ) Income tax expense — 117 — 1,166 — 1,283 Net loss $ (277,863 ) $ (3,336 ) $ (273,501 ) $ (567,341 ) $ 844,178 $ (277,863 ) Comprehensive loss $ (277,863 ) $ (9,066 ) $ (273,501 ) $ (566,437 ) $ 844,178 $ (282,689 ) Condensed Consolidating Statements of Comprehensive Income For the Three Months Ended March 31, 2018 (Thousands of Dollars) NuStar Energy NuStar Logistics NuPOP Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ 119,694 $ 56,274 $ 300,115 $ (202 ) $ 475,881 Costs and expenses 612 72,416 35,181 269,394 (202 ) 377,401 Operating (loss) income (612 ) 47,278 21,093 30,721 — 98,480 Equity in earnings (loss) of subsidiaries 126,713 (2,249 ) 112,003 131,639 (368,106 ) — Interest income (expense), net 32 (50,026 ) (1,571 ) 3,793 — (47,772 ) Other income, net — 476 115 79,161 — 79,752 Income (loss) before income tax expense 126,133 (4,521 ) 131,640 245,314 (368,106 ) 130,460 Income tax expense — 170 1 4,156 — 4,327 Net income (loss) $ 126,133 $ (4,691 ) $ 131,639 $ 241,158 $ (368,106 ) $ 126,133 Comprehensive income $ 126,133 $ 14,120 $ 131,639 $ 243,271 $ (368,106 ) $ 147,057 Condensed Consolidating Statements of Cash Flows For the Three Months Ended March 31, 2019 (Thousands of Dollars) NuStar Energy NuStar Logistics NuPOP Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by operating activities $ 93,209 $ 26,732 $ 11,953 $ 113,864 $ (142,190 ) $ 103,568 Cash flows from investing activities: Capital expenditures — (87,696 ) (2,253 ) (69,480 ) — (159,429 ) Change in accounts payable related to capital expenditures — 14,894 15,532 (11,025 ) — 19,401 Proceeds from sale or disposition of assets — 46 1 32 — 79 Net cash (used in) provided by investing activities — (72,756 ) 13,280 (80,473 ) — (139,949 ) Cash flows from financing activities: Debt borrowings — 306,500 — 5,000 — 311,500 Debt repayments — (143,500 ) — (14,600 ) — (158,100 ) Distributions to preferred unitholders (30,423 ) (15,212 ) (15,212 ) (15,211 ) 45,635 (30,423 ) Distributions to common unitholders (64,367 ) (32,183 ) (32,183 ) (32,189 ) 96,555 (64,367 ) Net intercompany activity 8,948 (55,453 ) 22,164 24,341 — — Payment of tax withholding for unit-based compensation (6,366 ) — — — — (6,366 ) Other, net (893 ) (4,227 ) (2 ) (5 ) — (5,127 ) Net cash (used in) provided by financing activities (93,101 ) 55,925 (25,233 ) (32,664 ) 142,190 47,117 Effect of foreign exchange rate changes on cash — — — 154 — 154 Net increase in cash, cash equivalents and restricted cash 108 9,901 — 881 — 10,890 Cash, cash equivalents, and restricted cash as of the beginning of the period 1,255 51 — 12,338 — 13,644 Cash, cash equivalents and restricted cash as of the end of the period $ 1,363 $ 9,952 $ — $ 13,219 $ — $ 24,534 Condensed Consolidating Statements of Cash Flows For the Three Months Ended March 31, 2018 (Thousands of Dollars) NuStar Energy NuStar Logistics NuPOP Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by operating activities $ 130,847 $ 16,855 $ 25,112 $ 148,287 $ (197,937 ) $ 123,164 Cash flows from investing activities: Capital expenditures — (6,815 ) (2,440 ) (128,619 ) — (137,874 ) Change in accounts payable related to capital expenditures — (1,946 ) (5,700 ) (4,372 ) — (12,018 ) Proceeds from sale or disposition of assets — 6 4 9 — 19 Proceeds from insurance recoveries — — — 78,419 — 78,419 Net cash used in investing activities — (8,755 ) (8,136 ) (54,563 ) — (71,454 ) Cash flows from financing activities: Debt borrowings — 348,411 — 1,300 — 349,711 Debt repayments — (268,621 ) — (5,800 ) — (274,421 ) Distributions to preferred unitholders (16,680 ) (8,341 ) (8,340 ) (8,340 ) 25,021 (16,680 ) Distributions to common unitholders and general partner (115,272 ) (57,636 ) (57,635 ) (57,645 ) 172,916 (115,272 ) Net intercompany activity 2,053 (18,769 ) 48,999 (32,283 ) — — Other, net (975 ) (3,147 ) — (62 ) — (4,184 ) Net cash used in financing activities (130,874 ) (8,103 ) (16,976 ) (102,830 ) 197,937 (60,846 ) Effect of foreign exchange rate changes on cash — — — (28 ) — (28 ) Net decrease in cash and cash equivalents (27 ) (3 ) — (9,134 ) — (9,164 ) Cash and cash equivalents as of the beginning of the period 885 29 — 23,378 — 24,292 Cash and cash equivalents as of the end of the period $ 858 $ 26 $ — $ 14,244 $ — $ 15,128 |