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 December 31, 2019 (Thousands of Dollars) NuStar Energy NuStar Logistics NuPOP Non-Guarantor Subsidiaries Eliminations Consolidated Assets Cash and cash equivalents $ 176 $ 24 $ — $ 15,992 $ — $ 16,192 Receivables, net — 317 4 152,209 — 152,530 Inventories — 1,953 4,821 5,619 — 12,393 Prepaid and other current assets 61 16,325 600 4,947 — 21,933 Intercompany receivable — 1,276,839 — 610,298 (1,887,137 ) — Total current assets 237 1,295,458 5,425 789,065 (1,887,137 ) 203,048 Property, plant and equipment, net — 2,058,530 612,128 1,448,321 — 4,118,979 Intangible assets, net — 39,683 — 641,949 — 681,632 Goodwill — 149,453 170,652 685,748 — 1,005,853 Investment in wholly owned subsidiaries 2,871,540 1,743,066 1,155,855 490,826 (6,261,287 ) — Other long-term assets, net 98 111,362 32,121 32,899 — 176,480 Total assets $ 2,871,875 $ 5,397,552 $ 1,976,181 $ 4,088,808 $ (8,148,424 ) $ 6,185,992 Liabilities, Mezzanine Equity and Partners’ Equity Accounts payable $ 5,427 $ 42,064 $ 8,379 $ 53,964 $ — $ 109,834 Short-term debt and current portion of finance leases — 9,722 299 25 — 10,046 Current portion of long-term debt — 452,367 — — — 452,367 Accrued interest payable — 37,888 4 33 — 37,925 Accrued liabilities 1,425 40,514 8,461 53,885 — 104,285 Taxes other than income tax 125 7,311 5,160 185 — 12,781 Income tax payable — 492 2 3,831 — 4,325 Intercompany payable 438,857 — 1,448,280 — (1,887,137 ) — Total current liabilities 445,834 590,358 1,470,585 111,923 (1,887,137 ) 731,563 Long-term debt, less current portion — 2,871,786 1,127 62,005 — 2,934,918 Deferred income tax liability — 1,499 10 10,918 — 12,427 Other long-term liabilities — 65,577 13,774 69,588 — 148,939 Series D preferred units 581,935 — — — — 581,935 Total partners’ equity 1,844,106 1,868,332 490,685 3,834,374 (6,261,287 ) 1,776,210 Total liabilities, mezzanine equity and partners’ equity $ 2,871,875 $ 5,397,552 $ 1,976,181 $ 4,088,808 $ (8,148,424 ) $ 6,185,992 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 $ — $ 10,223 $ — $ 11,529 Receivables, net — 2,212 — 108,205 — 110,417 Inventories — 1,741 5,237 1,456 — 8,434 Prepaid and other current assets 61 14,422 908 1,983 — 17,374 Assets held for sale — — — 599,347 — 599,347 Intercompany receivable — 1,327,833 — 500,583 (1,828,416 ) — Total current assets 1,316 1,346,259 6,145 1,221,797 (1,828,416 ) 747,101 Property, plant and equipment, net — 1,858,264 615,549 1,300,989 — 3,774,802 Intangible assets, net — 49,107 — 683,949 — 733,056 Goodwill — 149,453 170,652 685,748 — 1,005,853 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 $ 50,651 $ — $ 103,122 Short-term debt — 18,500 — — — 18,500 Accrued interest payable — 36,253 — 40 — 36,293 Accrued liabilities 1,280 24,858 8,082 40,198 — 74,418 Taxes other than income tax 125 7,285 4,718 4,695 — 16,823 Income tax payable — 457 2 3,986 — 4,445 Liabilities held for sale — — — 69,834 — 69,834 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 (Loss) Income For the Year Ended December 31, 2019 (Thousands of Dollars) NuStar Energy NuStar Logistics NuPOP Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ 545,863 $ 258,420 $ 694,485 $ (747 ) $ 1,498,021 Costs and expenses 2,574 338,291 159,376 607,611 (747 ) 1,107,105 Operating (loss) income (2,574 ) 207,572 99,044 86,874 — 390,916 Equity in earnings of subsidiaries 208,995 42,139 51,537 144,366 (447,037 ) — Interest income (expense), net 415 (187,337 ) (6,961 ) 10,813 — (183,070 ) Other income (expense), net — 3,002 744 (4 ) — 3,742 Income from continuing operations before income tax expense (benefit) 206,836 65,376 144,364 242,049 (447,037 ) 211,588 Income tax expense (benefit) 2 (230 ) 3 4,979 — 4,754 Income from continuing operations, net of tax 206,834 65,606 144,361 237,070 (447,037 ) 206,834 (Loss) income from discontinued operations, net of tax (a) (312,527 ) 7,912 (320,439 ) (640,877 ) 953,404 (312,527 ) Net (loss) income $ (105,693 ) $ 73,518 $ (176,078 ) $ (403,807 ) $ 506,367 $ (105,693 ) (a) Includes equity in earnings (loss) of subsidiaries related to discontinued operations. Condensed Consolidating Statements of Income (Loss) For the Year Ended December 31, 2018 (Thousands of Dollars) NuStar Energy NuStar Logistics NuPOP Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ 485,603 $ 260,679 $ 774,685 $ (705 ) $ 1,520,262 Costs and expenses 2,407 317,286 163,667 701,879 (705 ) 1,184,534 Operating (loss) income (2,407 ) 168,317 97,012 72,806 — 335,728 Equity in earnings of subsidiaries 148,554 17,167 62,494 152,830 (381,045 ) — Interest income (expense), net 228 (191,835 ) (7,127 ) 14,336 — (184,398 ) Other income, net — 3,876 446 880 — 5,202 Income (loss) from continuing operations before income tax expense (benefit) 146,375 (2,475 ) 152,825 240,852 (381,045 ) 156,532 Income tax expense (benefit) — 588 (3 ) 9,572 — 10,157 Income (loss) from continuing operations, net of tax 146,375 (3,063 ) 152,828 231,280 (381,045 ) 146,375 Income from discontinued operations, net of tax (a) 59,419 — 59,419 118,838 (178,257 ) 59,419 Net income (loss) $ 205,794 $ (3,063 ) $ 212,247 $ 350,118 $ (559,302 ) $ 205,794 (a) Includes equity in earnings (loss) of subsidiaries related to discontinued operations. Condensed Consolidating Statements of Income (Loss) For the Year Ended December 31, 2017 (Thousands of Dollars) NuStar Energy NuStar Logistics NuPOP Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ 496,454 $ 221,125 $ 728,211 $ (1,018 ) $ 1,444,772 Costs and expenses 1,868 317,871 146,243 689,298 (1,018 ) 1,154,262 Operating (loss) income (1,868 ) 178,583 74,882 38,913 — 290,510 Equity in earnings (loss) of subsidiaries 112,706 (10,616 ) 52,336 121,631 (276,057 ) — Interest income (expense), net 57 (176,897 ) (5,587 ) 10,653 — (171,774 ) Other income (expense), net — 145 3 (216 ) — (68 ) Income (loss) from continuing operations before income tax (benefit) expense 110,895 (8,785 ) 121,634 170,981 (276,057 ) 118,668 Income tax (benefit) expense — (820 ) 2 8,591 — 7,773 Income (loss) from continuing operations, net of tax 110,895 (7,965 ) 121,632 162,390 (276,057 ) 110,895 Income from discontinued operations, net of tax (a) 37,069 — 37,069 74,138 (111,207 ) 37,069 Net income (loss) $ 147,964 $ (7,965 ) $ 158,701 $ 236,528 $ (387,264 ) $ 147,964 (a) Includes equity in earnings (loss) of subsidiaries related to discontinued operations. Condensed Consolidating Statements of Comprehensive (Loss) Income For the Year Ended December 31, 2019 (Thousands of Dollars) NuStar Energy NuStar Logistics NuPOP Non-Guarantor Subsidiaries Eliminations Consolidated Net (loss) income $ (105,693 ) $ 73,518 $ (176,078 ) $ (403,807 ) $ 506,367 $ (105,693 ) Other comprehensive income (loss): Foreign currency translation adjustment — — — 3,527 — 3,527 Net loss on pension and other postretirement benefit adjustments, net of tax benefit — — — (1,314 ) — (1,314 ) Net loss on cash flow hedges — (15,231 ) — — — (15,231 ) Total other comprehensive (loss) income — (15,231 ) — 2,213 — (13,018 ) Comprehensive (loss) income $ (105,693 ) $ 58,287 $ (176,078 ) $ (401,594 ) $ 506,367 $ (118,711 ) Condensed Consolidating Statements of Comprehensive Income For the Year Ended December 31, 2018 (Thousands of Dollars) NuStar Energy NuStar Logistics NuPOP Non-Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ 205,794 $ (3,063 ) $ 212,247 $ 350,118 $ (559,302 ) $ 205,794 Other comprehensive income: Foreign currency translation adjustment — — — 4,304 — 4,304 Net gain on pension and other postretirement benefit adjustments, net of tax expense — — — 2,334 — 2,334 Net gain on cash flow hedges — 23,411 — — — 23,411 Total other comprehensive income — 23,411 — 6,638 — 30,049 Comprehensive income $ 205,794 $ 20,348 $ 212,247 $ 356,756 $ (559,302 ) $ 235,843 Condensed Consolidating Statements of Comprehensive Income (Loss) For the Year Ended December 31, 2017 (Thousands of Dollars) NuStar Energy NuStar Logistics NuPOP Non-Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ 147,964 $ (7,965 ) $ 158,701 $ 236,528 $ (387,264 ) $ 147,964 Other comprehensive income (loss): Foreign currency translation adjustment — — — 17,466 — 17,466 Net loss on pension and other postretirement benefit adjustments, net of tax benefit — — — (6,170 ) — (6,170 ) Net loss on cash flow hedges — (2,046 ) — — — (2,046 ) Total other comprehensive (loss) income — (2,046 ) — 11,296 — 9,250 Comprehensive income (loss) $ 147,964 $ (10,011 ) $ 158,701 $ 247,824 $ (387,264 ) $ 157,214 Condensed Consolidating Statements of Cash Flows For the Year Ended December 31, 2019 (Thousands of Dollars) NuStar Energy NuStar Logistics NuPOP Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by operating activities $ 376,999 $ 166,005 $ 126,728 $ 409,115 $ (570,090 ) $ 508,757 Cash flows from investing activities: Capital expenditures — (257,117 ) (28,592 ) (247,859 ) — (533,568 ) Change in accounts payable related to capital expenditures — 1,369 1,212 (15,312 ) — (12,731 ) Proceeds from sale or disposition of assets — 247 90 227,815 — 228,152 Investment in subsidiaries — (11,999 ) — — 11,999 — Other, net — — — (1,100 ) — (1,100 ) Net cash used in investing activities — (267,500 ) (27,290 ) (36,456 ) 11,999 (319,247 ) Cash flows from financing activities: Debt borrowings — 1,415,580 — 42,800 — 1,458,380 Debt repayments — (1,207,000 ) — (42,400 ) — (1,249,400 ) Issuance of common units, net of issuance costs 15,000 — — — — 15,000 Distributions to preferred unitholders (121,693 ) (60,846 ) (60,847 ) (60,853 ) 182,546 (121,693 ) Distributions to common unitholders (258,354 ) (129,177 ) (129,177 ) (129,190 ) 387,544 (258,354 ) Contributions from affiliates — — — 11,999 (11,999 ) — Net intercompany activity (2,010 ) 101,980 90,734 (190,704 ) — — Other, net (11,021 ) (10,281 ) (148 ) (133 ) — (21,583 ) Net cash (used in) provided by financing activities (378,078 ) 110,256 (99,438 ) (368,481 ) 558,091 (177,650 ) Effect of foreign exchange rate changes on cash — — — (524 ) — (524 ) Net (decrease) increase in cash, cash equivalents and restricted cash (1,079 ) 8,761 — 3,654 — 11,336 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 $ 176 $ 8,812 $ — $ 15,992 $ — $ 24,980 Condensed Consolidating Statements of Cash Flows For the Year Ended December 31, 2018 (Thousands of Dollars) NuStar Energy NuStar Logistics NuPOP Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by operating activities $ 444,233 $ 100,385 $ 179,512 $ 514,936 $ (694,859 ) $ 544,207 Cash flows from investing activities: Capital expenditures — (71,044 ) (19,152 ) (367,256 ) — (457,452 ) Change in accounts payable related to capital expenditures — 11,101 (5,161 ) (13,623 ) — (7,683 ) Acquisitions — — (37,502 ) — — (37,502 ) Proceeds from insurance recoveries — — — 78,419 — 78,419 Proceeds from sale or disposition of assets — 2,674 31 267,735 — 270,440 Investment in subsidiaries (708,600 ) (1,711,975 ) (54,600 ) (54,665 ) 2,529,840 — Net cash used in investing activities (708,600 ) (1,769,244 ) (116,384 ) (89,390 ) 2,529,840 (153,778 ) Cash flows from financing activities: Debt borrowings — 1,840,853 — 31,800 — 1,872,653 Debt repayments — (2,349,476 ) — (32,300 ) — (2,381,776 ) Issuance of Series D preferred units 590,000 — — — — 590,000 Payment of issuance costs for (34,203 ) — — — — (34,203 ) Issuance of common units, net of 10,000 — — — — 10,000 General partner contribution 204 — — — — 204 Distributions to preferred unitholders (90,670 ) (45,336 ) (45,336 ) (45,335 ) 136,007 (90,670 ) Distributions to common unitholders and general partner (300,777 ) (150,388 ) (150,388 ) (150,408 ) 451,184 (300,777 ) Cash consideration for Merger (67,936 ) — — 141 — (67,795 ) Proceeds from termination of interest rate swaps — 8,048 — — — 8,048 Contributions from affiliates — 599,400 54,600 1,768,172 (2,422,172 ) — Net intercompany activity 162,498 1,766,881 77,996 (2,007,375 ) — — Other, net (4,379 ) (1,101 ) — (71 ) — (5,551 ) Net cash provided by (used in) financing activities 264,737 1,668,881 (63,128 ) (435,376 ) (1,834,981 ) (399,867 ) Effect of foreign exchange rate changes on cash — — — (1,210 ) — (1,210 ) Net increase (decrease) in cash and cash equivalents 370 22 — (11,040 ) — (10,648 ) 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 $ 1,255 $ 51 $ — $ 12,338 $ — $ 13,644 Condensed Consolidating Statements of Cash Flows For the Year Ended December 31, 2017 (Thousands of Dollars) NuStar Energy NuStar Logistics NuPOP Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by operating activities $ 483,481 $ 152,101 $ 102,405 $ 405,950 $ (737,138 ) $ 406,799 Cash flows from investing activities: Capital expenditures — (47,600 ) (35,041 ) (301,997 ) — (384,638 ) Change in accounts payable related to capital expenditures — (1,988 ) 5,964 32,927 — 36,903 Acquisitions — — — (1,461,719 ) — (1,461,719 ) Proceeds from Axeon term loan — 110,000 — — — 110,000 Proceeds from insurance recoveries — — — 977 — 977 Proceeds from sale or disposition of assets — 1,955 18 63 — 2,036 Investment in subsidiaries (1,262,000 ) — — (126 ) 1,262,126 — Net cash (used in) provided by investing activities (1,262,000 ) 62,367 (29,059 ) (1,729,875 ) 1,262,126 (1,696,441 ) Cash flows from financing activities: Debt borrowings — 2,969,400 — 90,700 — 3,060,100 Debt repayments — (2,400,739 ) — (86,800 ) — (2,487,539 ) Issuance of preferred units, net of 538,560 — — — — 538,560 Issuance of common units, net of 643,878 — — — — 643,878 General partner contribution 13,737 — — — — 13,737 Distributions to preferred unitholders (38,833 ) (19,417 ) (19,416 ) (19,418 ) 58,251 (38,833 ) Distributions to common unitholders and general partner (446,306 ) (223,153 ) (223,153 ) (223,176 ) 669,482 (446,306 ) Contributions from — 1,262,000 — (9,279 ) (1,252,721 ) — Net intercompany activity 73,206 (1,801,218 ) 169,223 1,558,789 — — Other, net (5,708 ) (1,317 ) — (300 ) — (7,325 ) Net cash provided by (used in) financing activities 778,534 (214,444 ) (73,346 ) 1,310,516 (524,988 ) 1,276,272 Effect of foreign exchange rate changes on cash — — — 1,720 — 1,720 Net increase (decrease) in cash and cash equivalents 15 24 — (11,689 ) — (11,650 ) Cash and cash equivalents as of the beginning of the period 870 5 — 35,067 — 35,942 Cash and cash equivalents as of the end of the period $ 885 $ 29 $ — $ 23,378 $ — $ 24,292 |