Exhibit 99.1
NuStar GP Holdings, LLC
Consolidated Financial Information
March 31, 2008 and 2007
(unaudited, thousands of dollars, except unit data and per unit data)
| | | | | | | | |
| | | Three Months Ended
March 31, | |
| | | 2008 | | | 2007 | |
| | | REVISED | | | | |
Statement of Income Data: | | | | | | | | |
Equity in earnings of NuStar Energy L.P. | | $ | 15,754 | | | $ | 9,557 | |
General and administrative expenses | | | (742 | ) | | | (796 | ) |
Other expense, net | | | — | | | | (26 | ) |
Interest expense, net | | | (29 | ) | | | (4 | ) |
| | | | | | | | |
Income before income tax benefit | | | 14,983 | | | | 8,731 | |
Income tax benefit | | | 20 | | | | 40 | |
| | | | | | | | |
Net income | | $ | 15,003 | | | $ | 8,771 | |
| | | | | | | | |
Basic and diluted net income per unit | | $ | 0.35 | | | $ | 0.21 | |
| | | | | | | | |
Equity in Earnings of NuStar Energy L.P.: | | | | | | | | |
General partner interest (2%) | | $ | 1,014 | | | $ | 544 | |
General partner incentive distribution | | | 5,188 | | | | 3,910 | |
| | | | | | | | |
General partner's interest in earnings of NuStar Energy L.P. | | | 6,202 | | | | 4,454 | |
Limited partner interest in earnings of NuStar Energy L.P. | | | 10,273 | | | | 5,824 | |
Amortization of step-up in basis related to NuStar Energy L.P.'s assets and liabilities | | | (721 | ) | | | (721 | ) |
| | | | | | | | |
Equity in earnings of NuStar Energy L.P. | | $ | 15,754 | | | $ | 9,557 | |
| | | | | | | | |
Distributable Cash Flow (Note 1): | | | | | | | | |
Cash distributions from NuStar Energy L.P. associated with: | | | | | | | | |
General partner interest (2%) | | $ | 1,211 | | | $ | 954 | |
Incentive distribution rights (Note 2): | | | 5,718 | | | | 3,910 | |
Limited partner interest-common units | | | 10,067 | | | | 9,359 | |
| | | | | | | | |
Total cash distributions from NuStar Energy L.P. | | | 16,996 | | | | 14,223 | |
Deduct expenses of NuStar GP Holdings, LLC: | | | | | | | | |
General and administrative expenses | | | (742 | ) | | | (796 | ) |
Income tax benefit | | | 20 | | | | 40 | |
Interest expense, net | | | (29 | ) | | | (4 | ) |
| | | | | | | | |
Distributable cash flow | | $ | 16,245 | | | $ | 13,463 | |
| | | | | | | | |
Units outstanding | | | 42,500,990 | | | | 42,500,000 | |
Distributable cash flow per unit | | $ | 0.38 | | | $ | 0.32 | |
| | | | | | | | |
Cash distributions to be paid to the unitholders of NuStar GP Holdings, LLC: | | | | | | | | |
Distribution per unit | | $ | 0.36 | | | $ | 0.32 | |
| | | | | | | | |
Total distribution | | $ | 15,300 | | | $ | 13,600 | |
| | | | | | | | |
NuStar GP Holdings, LLC
Consolidated Financial Information
March 31, 2008 and 2007
(unaudited, thousands of dollars)
Notes:
| | 1. | NuStar GP Holdings, LLC utilizes distributable cash flow as a financial measure which is not defined in United States generally accepted accounting principles. Management uses this financial measure because it is a widely accepted financial indicator used by investors to compare general partner performance. In addition, management believes that this measure provides investors an enhanced perspective of the ability to make a minimum quarterly distribution. Distributable cash flow is not intended to represent cash flows for the period, nor is it presented as an alternative to net income. It should not be considered in isolation or as substitutes for a measure of performance prepared in accordance with United States generally accepted accounting principles. |
The following is a reconciliation of net income to distributable cash to net cash provided by operating activities:
| | | | | | | | |
| | | Three Months Ended
March 31, | |
| | | 2008 | | | 2007 | |
| | | REVISED | | | | |
Net Income | | $ | 15,003 | | | $ | 8,771 | |
Adjustments to derive Distributable Cash Flow: | | | | | | | | |
Equity in earnings of NuStar Energy L.P. | | | (15,754 | ) | | | (9,557 | ) |
Quarterly distribution from NuStar Energy L.P. | | | 16,996 | | | | 14,223 | |
Other expense, net | | | — | | | | 26 | |
| | | | | | | | |
Distributable cash Flow | | | 16,245 | | | | 13,463 | |
Adjustments to Distributable Cash Flow to derive Net Cash Provided by Operating Activities: | | | | | | | | |
Quarterly distribution from NuStar Energy L.P. | | | (16,996 | ) | | | (14,223 | ) |
Cash distribution of equity earnings received from NuStar Energy L.P. | | | 15,754 | | | | 9,557 | |
Net effect of changes in operating accounts | | | (849 | ) | | | 1,216 | |
| | | | | | | | |
Net cash provided by operating activities | | $ | 14,154 | | | $ | 10,013 | |
| | | | | | | | |
| | 2. | NuStar Energy L.P.'s net income allocation to general and limited partners reflected total cash distributions based upon the partnership interests outstanding as of March 31, 2008. NuStar Energy L.P. issued approximately 5.1 million common units in April 2008. Actual distribution payments are made within 45 days after the end of each quarter as of a record date that is set after the end of each quarter. As such, the general partner’s portion of the actual cash payment made with respect to the first quarter 2008, including the incentive distribution rights, will be greater than the net income allocation to the general partner. |
