![]() RBC Capital Markets – 2010 MLP Conference November 18, 2010 Exhibit 99.1 |
![]() Statements contained in this presentation that state management’s expectations or predictions of the future are forward-looking statements intended to be covered by the safe harbor provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The words “believe,” “expect,” “should,” “targeting,” “estimates,” and other similar expressions identify forward-looking statements. It is important to note that actual results could differ materially from those projected in such forward-looking statements. We undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see NuStar Energy L.P.’s annual report on Form 10-K and quarterly reports on Form 10- Q, filed with the Securities and Exchange Commission and available on NuStar’s website at www.nustarenergy.com. Forward Looking Statements 2 |
![]() NuStar Overview 3 |
![]() NuStar Energy L.P. (NYSE: NS) is a leading publicly traded partnership with a market capitalization of around $4.4 billion and an enterprise value of approximately $6.3 billion NuStar GP Holdings, LLC (NYSE: NSH) holds the 2% general partner interest, incentive distribution rights and 15.6% of the common units in NuStar Energy L.P. with a market capitalization of around $1.5 billion Two Publicly Traded Companies NS NSH IPO Date: 4/16/2001 7/19/2006 Unit Price (11/11/10): $67.71 $35.63 Annual Distribution/Unit: $4.30 $1.92 Yield (11/11/10): 6.35% 5.39% Debt Balance (9/30/10) $1,991 million $19.5 million Market Capitalization: (9/30/10) $4,375 million $1,516 million Enterprise Value (9/30/10) $6,279 million $1,528 million Total Assets (9/30/10) $5,191 million $618 million Debt/Cap. (9/30/10) 42.5% n/a Credit Ratings – Moody’s Baa3/Stable n/a S&P and Fitch BBB-/Stable n/a 83.1% Membership Interest 82.4% L.P. Interest Public Unitholders 35.4 Million NSH Units Public Unitholders 54.3 Million NS Units 16.9% Membership Interest 2.0% G.P. Interest 15.6% L.P. Interest Incentive Distribution Rights William E. Greehey 7.2 Million NSH Units NYSE: NSH NYSE: NS 4 |
![]() Large and Diverse Geographic Footprint with Assets in Key Locations Asset Stats: Operations in eight different countries including the U.S., Mexico, Netherlands, Netherlands Antilles (i.e. Caribbean), England, Ireland, Scotland and Canada 8,417 miles of crude oil and refined product pipelines Own 88 terminal and storage facilities Over 93 million barrels of storage capacity 2 asphalt refineries on the U.S. East Coast capable of processing 104,000 bpd of crude oil 5 |
![]() Percentage of 2009 Segment Operating Income Approximately 84% of NuStar Energy’s segment operating income in 2009 came from fee-based transportation and storage segments Remainder of 2009 segment operating income related to margin-based asphalt and fuels marketing segment Storage: 46% Transportation: 38% Refined Product Terminals Crude Oil Storage Refined Product Pipelines* Crude Oil Pipelines Asphalt & Fuels Marketing: 16% Asphalt Fuels Marketing Product Supply, Wholesale, Fuel Oil Marketing and Bunkering Diversified Operations from Three Business Segments * Includes primarily distillates, gasoline, propane, jet fuel, ammonia and other light products. Does not include natural gas. 6 |
![]() Organic Growth in Refined Product Infrastructure 7 |
![]() Transportation Segment Assets in close proximity to key Shale Formations Transportation Segment Assets in close proximity to key Shale Formations Shale Development Strategy There are four key shale developments located in NuStar’s Mid-Continent and Gulf Coast regions, including the Bakken, Niobrara, Barnett, and Eagle Ford developments Our strategy is to optimize and grow the existing asset base, and maximize the value of the assets located in or near shale developments 8 |
![]() Recently announced agreement with Koch Pipeline first NuStar project in Eagle Ford Shale Companies agreed to a pipeline connection and capacity lease agreement Allows NuStar to reactivate a 60 mile pipeline that has been idle since November 2005 Project connects our existing Pettus, Texas to Corpus Christi pipeline segment to Koch’s existing pipeline Initial capacity agreement for 30 thousand BPD, could grow to 50 thousand BPD Project cost $5 to $10 million Expected in-service date mid-2011 9 |
![]() Plan to continue to optimize and grow our existing storage asset base St. James, LA. Terminal Expansion St. Eustatius Terminal Expansion Denver Terminal Expansion Jacksonville Terminal Expansion 10 |
![]() St. James, Louisiana terminal expansion expected to occur in two phases Phase 1 – Third-Party Crude Oil Storage Construct 3.1 million barrels of crude oil storage Projected CAPEX of $110 to $130 million, with projected average annual EBITDA of $15 to $25 million Expected in-service August 2011 through January 2012 Phase 2 – Third-Party Crude Oil Storage Project in early planning stages Should be similar in size to Phase 1 project Could grow in size based on customer demand Expected in-service in 2013 11 |
![]() St. Eustatius project planned to convert existing tanks and construct new tanks for distillate service Conversion Project Convert 600,000 barrels of storage from fuel oil to distillate service to capture higher storage fees Expansion Project Construct 900,000 barrels of new storage for distillate service Interested customers include several national oil companies Combined conversion and expansion projected CAPEX of $40 to $50 million, with projected average annual EBITDA of $5 to $10 million Expected in-service by February 2012 (Conversion Project) and September 2012 (Expansion Project) 12 |
![]() Jacksonville expansion constructs new tankage …Denver expansion constructs new loading rack Jacksonville Storage Expansion Construct 500,000 barrels of clean products storage to support a major refiner’s expansion Projected CAPEX of $20 to $30 million, with projected average annual EBITDA of $5 to 10 million Expected in-service by March 2012 Denver Terminal Expansion Construct a new truck loading rack to serve a Denver refiner’s refined product output and attract incremental volumes from other new customers Projected CAPEX of $10 to $15 million, with projected average annual EBITDA of $1 to $5 million Expected in-service by January 2012 13 |
![]() Majority of 2011 Internal Growth Capital Will to be spent in the Storage Segment 14 ( Dollars in Millions) Annual Internal Growth Spending By Business Segment $11 $20 $13 $8 $128 $107 $153 $218 $3 $14 $20 $19 $36 $80 2008 Actual 2009 Actual 2010 Forecast 2011 Forecast Corporate Asphalt & Fuels Marketing Storage Transportation $146 $164 $325 $222 $4 $23 |
![]() Acquisition Growth in Refined Product Infrastructure 15 |
![]() Joint Venture (JV) Overview NuStar entered into a $50-$60 million JV agreement with S-Oil and Aves Oil, two Turkish companies The JV should own 100% of two terminals in Mersin and land in Giresun and Ceyhan NuStar should own 75% of the JV and operate the terminals Both terminals connect via pipeline to an offshore platform (SAVKA) 5 km off the Turkish coastline The JV should own 67% of SAVKA Upon Projected December Closing, Acquired Assets in Turkey Provide Platform for Internal Growth Growth Opportunities Expansion project under development at Mersin Expands existing storage by about 70 percent Potential to tie into NATO Pipeline Provides access to markets for military fuels New terminal at Giresun 37-acre site with access to Black Sea ports 200,000 barrel fuel oil terminal under development Second phase build-out to 1.9 million barrels under evaluation New terminal at Ceyhan Ceyhan is the destination for pipelines delivering crude from northern Iraq and the Caspian area to the Mediterranean 173 acre property is well-suited for building up to 6.3 million barrels of storage and marine jetty 16 |
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![]() Reconciliation of Non-GAAP Financial Information Internal Growth Program 18 (Unaudited, Dollars in Thousands) St. James, LA Terminal Expansion Phase 1 St. Eustatius Distillate Project Jacksonville Storage Expansion Denver Terminal Expansion Projected annual operating income range $ 11,000 - 20,000 $ 4,000 - 8,000 $ 4,500 - 9,000 $ 500 - 4,000 Plus projected annual depreciation and amortization expense range 4,000 - 5,000 1,000 - 2,000 500 - 1,000 500 - 1,000 Projected annual adjusted EBITDA range $ 15,000 - 25,000 $ 5,000 - 10,000 $ 5,000 - 10,000 $ 1,000 - 5,000 EBITDA in the following reconciliations relate to our reportable segments or a portion of a reportable segment. We do not allocate general and administrative expenses to our reportable segments because those expenses relate primarily to the overall management at the entity level. Therefore, EBITDA reflected in the following reconciliations excludes any allocation of general and administrative expenses consistent with our policy for determining segmental operating income, the most directly comparable GAAP measure. EBITDA should not be considered in isolation or as a substitute for a measure of performance prepared in accordance with GAAP. The following is a reconciliation of projected annual operating income to projected annual adjusted EBITDA for certain projects in our storage segment related to our internal growth program: |