Tudor, Pickering Holt & Co. MLP Meetings January 28, 2009 Steve Blank – Senior VP, CFO & Treasurer Exhibit 99.1 |
This presentation contains certain estimates, predictions, projections, assumptions and other forward-looking statements that involve various risks and uncertainties. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested in this report. These forward-looking statements can generally be identified by the words "anticipates," "believes," "expects," "plans," "intends," "estimates," "forecasts," "budgets," "projects," "will," "could," "should," "may" and similar expressions. These statements reflect our current views with regard to future events and are subject to various risks, uncertainties and assumptions. For a discussion of certain of those risks, please read "Risk Factors" in Item 1A of both NuStar Energy L.P's and NuStar GP Holdings, LLC's respective annual reports on Form 10-K for the year ended December 31, 2007 and each entity’s subsequent quarterly reports as filed with the Securities and Exchange Commission. Forward Looking Statements 2 |
NuStar Energy L.P. is a leading publicly traded growth-oriented partnership (NYSE: NS) General partner owned by NuStar GP Holdings, LLC (NYSE: NSH) One of the largest independent petroleum pipeline and terminal operators in the U.S. One of the largest asphalt refiners and marketers in the U.S. Large and diverse asset footprint with operations in seven different countries Listed on the Fortune 500 for the first time ever based on 2008 results Experienced management team with substantial equity ownership NuStar Overview 3 NS NSH IPO Date: 4/16/2001 7/19/2006 Unit Price (1/23/09): $44.80 $18.81 Annual Distribution/Unit: $4.23 $1.72 Yield (1/23/09): 9.44% 9.14% Market Equity Capitalization: $2,440 million $800 million Enterprise Value: $4,289 million $804 million Total Assets (9/30/08): $4,932 million $586 million Debt/Capitalization (12/31/08): 46.2% n/a Debt/EBITDA (12/31/08): 3.99x n/a 83.8% Membership Interest 79.6% L.P. Interest Public Unitholders 35,669,951 NSH Units Public Unitholders 44,210,016 NS Units 16.2% Membership Interest 2.0% G.P. Interest 18.4% L.P. Interest Incentive Distribution Rights William E. Greehey 6,878,920 NSH Units NYSE: NSH NYSE: NS |
Assets Stats: 8,491 miles of crude oil and refined product pipelines 82 terminal facilities and four crude oil storage tank facilities Over 90 million barrels of storage capacity 2 asphalt refineries capable of processing 104,000 bpd of crude oil Asset Overview 4 |
37% 35% 28% Percent of 2008 Segment Operating Income Diversification of operations provide various earnings streams and reduces risk Approximately 72% of NuStar Energy’s operating income in 2008 comes from stable, fee- based operations Remainder of operating income relates to margin-based asphalt and fuels marketing operations Storage (~37%) Transportation (~35%) Refined Product Terminals Crude Oil Storage Refined Product Pipelines Crude Oil Pipelines Asphalt & Fuels Marketing (~28%) Asphalt Fuels Marketing Product Supply, Wholesale and Fuel Oil Marketing Bunkering/Other Diversified Operations 5 |
Independent Liquids Storage Capacity (Millions of Barrels) 8 8 10 12 16 18 20 21 29 33 33 35 37 57 82 91 103 167 Global Leader in Independent Liquids Storage NuStar is the third largest independent liquids terminal operator in the world The CITGO Asphalt Refining Co. acquisition added 4.8 million barrels of storage Finished with majority of expansion projects under our $400 million construction program, which contributed around 8.5 million barrels of incremental storage capacity Source: Company Websites & Management Presentations 6 |
Consistent Distribution Growth Since IPO $4.085 $3.835 $3.60 $3.365 $3.20 $2.95 $2.75 $2.40 2001 2002 2003 2004 2005 2006 2007 2008 NuStar Energy L.P. Annual Distribution Increases Since IPO (Dollar Per Unit) Met previously stated 2008 distribution target for NuStar Energy L.P. by increasing the 2008 distribution by nearly 7 percent over 2007 Maintained a strong coverage ratio of 1.33 times applicable to the limited partners for 2008 Exceeded previously stated 2008 distribution target for NuStar GP Holdings, LLC by increasing the 2008 distribution by nearly 15 percent over 2007 Previous target was around 12 percent ~8.0% CAGR * * Based on NS annualized distribution of $0.60 per unit in 2001 ** Based on NSH annualized distribution of $0.32 per unit in 2006 NuStar GP Holdings, LLC Annual Distribution Increases Since IPO (Dollar Per Unit) $1.58 $1.38 $1.28 2006 2007 2008 ~11% CAGR ** 7 |
Recently reported record earnings, distributable cash flow and EBITDA for 2008 Increase in earnings year over year primarily due to addition of asphalt operations Looking ahead to 2009, we are optimistic on the outlook for our three business segments and expect all of them to perform better than 2008 Storage segment should see better results in 2009 as we benefit from a full year’s contribution from the projects completed under our $400 million construction program Pipeline segment should benefit from expected 7.5 percent increase in tariffs effective July 1, 2009 Expect 2009 throughput volumes to be comparable to 2008 throughput volumes Gradual recovery in refined product demand by the second half of this year due to lower prices and an improving economy could result in higher throughput volumes Results from our asphalt operations should be better in 2009 versus 2008 as we continue to benefit from tightening supply and better-than-historic margins Have not taken into account at this time, any impact from the proposed economic stimulus package, which could result in higher asphalt demand in 2009 Financial Outlook 8 |
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