 Curt Anastasio, CEO and President May 26, 2011 2011 Master Limited Partnership Investor Conference Exhibit 99.1 |
 Statements contained in this presentation that state management’s expectations or predictions of the future are forward-looking statements as defined by federal securities law. 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 and NuStar GP Holdings, LLC’s respective annual reports on Form 10-K and quarterly reports on Form 10-Q, filed with the Securities and Exchange Commission and available on NuStar’s websites at www.nustarenergy.com and www.nustargpholdings.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 $4.0 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 (05/20/11): $62.09 $36.22 Annual Distribution/Unit: $4.30 $1.92 Yield (05/20/11): 6.93% 5.30% Market Capitalization: $4,012 million $1,542 million Enterprise Value $6,304 million $1,551 million Credit Ratings – Moody’s Baa3/Stable n/a S&P and Fitch BBB-/Stable n/a 82.9% Membership Interest 82.4% L.P. Interest Public Unitholders 35.3 Million NSH Units Public Unitholders 54.4 Million NS Units 17.1% Membership Interest 2.0% G.P. Interest 15.6% L.P. Interest Incentive Distribution Rights William E. Greehey 7.3 Million NSH Units NYSE: NSH NYSE: NS 4 |
 Large and Diverse Geographic Footprint with Assets in Key Locations Asset Stats: Operations in eight different countries including the U.S., Mexico, the Netherlands, including St. Eustatius in the Caribbean, England, Ireland, Scotland, Canada and Turkey. Own 90 terminal and storage facilities Over 94 million barrels of storage capacity 8,417 miles of crude oil and refined product pipelines 2 asphalt refineries and a fuels refinery capable of processing 118,500 bpd of crude oil 5 |
 43% 35% 22% Percentage of 2010 Segment Operating Income Approximately 78% of NuStar Energy’s 2010 segment operating income came from fee-based transportation and storage segments Approximately 75% of 2011 segment operating income should come from fee- based transportation and storage segments Storage: 43% Transportation: 35% Refined Product Terminals Crude Oil Storage Refined Product Pipelines* Crude Oil Pipelines Asphalt & Fuels Marketing: 22% Asphalt Fuels Marketing Product Supply, Bunkering and Fuel Oil Marketing Diversified Operations from Three Business Segments * Includes primarily distillates, gasoline, propane, jet fuel, ammonia and other light products. Does not include natural gas. 6 |
 Distributions for both NS and NSH have grown every year since IPO’s… Expect 2011 distribution growth rate to be higher than 2010 7 NS Distribution ($ per Unit) NSH Distribution ($ per Unit) ~6.6% CAGR ~9.9% CAGR * Annualized Distribution * * 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 $2.75 $2.95 $3.20 $3.37 $3.60 $3.84 $4.09 $4.245 $4.28 2006 2007 2008 2009 2010 $1.38 $1.58 $1.73 $1.87 $2.40 $1.28 |
 Storage Segment Overview 8 |
 9 Storage Segment EBITDA ($ in Millions) Storage Contract Renewals (% of Revenues) 1 Year or Less 1 to 3 Years 3 to 5 Years Greater Than 5 Years 2011 Storage Segment EBITDA Expected to be Higher than 2010 2006 2007 2008 2009 2010 $162 $177 $208 $242 $256 30% 42% 13% 15% 2011 Outlook Full year 2011 segment EBITDA expected to be $25 to $35 million higher than 2010 2 Full year of EBITDA from May 2010 Mobile, AL terminal acquisition and St. Eustatius terminal acquisition that closed in February 2011 quarter 2011 segment EBITDA should be slightly higher than 2 nd quarter 2010 project completed in 4 th quarter 2010; partial year of EBITDA from Turkey terminal Benefits from St. James Phase 1 storage project should begin in 3 rd quarter 2011 nd |
 Plan to expand our St. James, Louisiana terminal in two phases Phase 1 – Third-Party Crude Oil Storage Construct 3.2 million barrels of crude oil storage Projected CAPEX of $125 to $145 million, with projected average annual EBITDA of $15 to $25 million Expected in-service 3 rd quarter 2011 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 last half of 2012 10 |
 Plan to construct new tanks for distillate service at our St. Eustatius terminal Construct one million barrels of new storage for distillate service Interested customers include several large oil companies Projected CAPEX of $45 to $55 million, with projected average annual EBITDA of $5 to $10 million Expected in-service 3 quarter 2012 11 rd |
 Transportation Segment Overview 12 |
 13 Transportation Segment EBITDA ($ in Millions) 2010 Pipeline Receipts by Commodity Lower throughputs should cause Transportation Segment EBITDA to be down in 2011 Gasoline 29% Other* 13% *Other includes ammonia, jet fuel, propane, naphtha and light end refined products Crude Oil 40% Distillate 18% 2011 Outlook Full year 2011 segment EBITDA expected to be $10 to $20 million lower than 2010 $1-$5 million of additional EBITDA from internal growth projects. Eagle Ford shale crude project with Koch Pipeline Company should increase throughputs 30,000 BPD and should be completed in mid-2011. Throughputs projected to be down ~8%. Heavy customer refinery turnaround schedule and changing market conditions could negatively impact throughputs Tariff increase of 6.9%, effective July 1, 2011, includes a 2.65% FERC approved index adjustment factor that will be applicable on an annual basis through June 30, 2016 2 quarter 2011 segment EBITDA should be $5 to $10 million lower than 2 quarter 2010 nd nd 2006 2007 2008 2009 2010 $170 $176 $186 $190 $199 |
 Transportation Segment Assets in close proximity to key Shale Formations Shale Development Strategy should increase Transportation Segment Throughputs Shale Development Strategy There are key shale developments located in NuStar’s Mid-Continent and Gulf Coast regions, including the Eagle Ford, Bakken, Granite Wash, Barnett, and Niobrara Our strategy is to optimize and grow the existing asset base, and maximize the value of the assets located in or near shale developments 14 |
 15 Two Eagle Ford Shale Projects have been announced to date….expect to announce additional projects in the near future Previously discussed Pipeline Connection & Capacity Lease Agreement with Koch Pipeline In April 2011, announced the signing of a LOI with TexStar Midstream Services to develop a new pipeline system TexStar plans to construct a 65-mile, 12-inch pipeline to transport crude and condensate from Frio County, TX to Three Rivers, TX Pipeline should be interconnected with a new storage facility to be constructed at Three Rivers, TX by NuStar Plan to connect storage facility to NuStar’s existing 16-inch pipeline that can transport 200,000 BPD to NuStar’s Corpus Christi North Beach storage terminal Expected in-service date of system 2Q 2012 Currently in discussions with several parties regarding the potential of converting some of our underutilized assets into Eagle Ford, Granite Wash and Barnett shale service |
 Asphalt & Fuels Marketing Segment Overview 16 |
 Earnings from recent refinery acquisition as well as improved earnings in Asphalt and Fuels Marketing operations should lead to improved segment results Asphalt & Fuels Marketing U.S. East Coast Product Margin ($ per barrel) 17 2009 Actual 2008 Actual 2000-2007 Average 2011 Outlook April 2011 San Antonio refinery acquisition already contributing to 2011 earnings Comparable to slightly lower asphalt demand more than offset by tight supply Full year benefit from new U.S. heavy fuels and bunker fuels markets entered in 2010 2 nd quarter 2011 segment EBITDA should be $40 to $45 million higher than 2 nd quarter 2010 Full year 2011 segment EBITDA expected to be $45 to $55 million higher than 2010 EBITDA (MM$) 2010 Actual 2006 2007 2008 2009 2010 $80 $111 $127 $27 $22 $37 $10 $37 $90 $70 $74 Asphalt Fuels Marketing $3.78 $8.75 $6.37 $7.73 |
 18 San Antonio Refinery acquisition immediately accretive to Distributable Cash Flow Approximately 70% of current refinery production of 12,000 BPD is hedged over the next three to four years Expect refinery to generate $30 to $40 million of EBITDA and $20 to $30 million of distributable cash flow per year over the life of the hedges $18 to $22 million of EBITDA and $12 to $16 million of distributable cash flow projected for 2011 14,500 BPD refinery acquired for $41 million Processes crude and condensate from Eagle Ford shale formation Produces and sells jet fuel, ULSD, naphtha, reformate and LPG’s |
 Financial Overview 19 |
 20 3/31/11 Revolver Availability NuStar Revolver Availability close to $300 million…. Credit Metrics improving as earnings increase Total Bank Credit $1,222 Less: Borrowings (421) Letters of Credit Go Zone Financing (294) Other (5) Revolver Availability $502 Standard & Poor’s: BBB - (Stable Outlook) Moody’s: Baa3 (Stable Outlook) Fitch: BBB- (Stable Outlook) Debt/EBITDA (3/31/11): 4.4x Debt/Capitalization (3/31/11): 47% Credit Ratings/Metrics (Dollars in Millions) 5.0x Revolver Debt/EBITDA covenant limits true Revolver availability to ~$300 million at 3/31/11 |
 21 No Significant Debt Maturities Until 2012 No significant debt maturities until 2012 at which time the revolver and some senior notes become due New Credit Revolver terms & pricing seem to be improving as economy improves Current plan is to hold off closing on a new Revolver until 2012 $290 million worth of GO Zone financing matures in 2038 – 2040 Debt structure approximately 40% fixed rate – 60% variable rate Entered into $200 million Equity Distribution Agreement on May 23, 2011 Debt Maturities as of March 31, 2011 (Millions $) 0 250 500 750 1000 1 806 480 350 450 290 |
 $20 $13 $49 $107 $159 $210 $14 $20 $31 $23 $27 $73 $43 $94 2009 Actual 2010 Actual 2011 Forecast Acquisitions Corporate Asphalt & Fuels Marketing Storage Transportation 2011 Total Spending on Internal Growth Projects & Acquisitions currently projected to be around $450 million 22 ( Dollars in Millions) $164 $262 $457 |
 High quality, large and diverse asset footprint supporting energy infrastructure both in the U.S. and internationally Contracted fee-based storage and transportation assets provide stable cash flows, delivering 78% of 2010 operating income Fourth largest independent liquids terminal operator in the world Diverse and high quality customer base composed of large integrated oil companies, national oil companies and refiners Strong balance sheet, credit metrics and commitment to maintain investment grade credit ratings Lower cost of capital than majority of peers Experienced and proven management team with substantial equity ownership and industry experience Recognized nationally for safety and environmental record as well as one of the best places to work Why Invest in NuStar? 23 |
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 25 Appendix |
 Reconciliation of Non-GAAP Financial Information: Transportation Segment 26 (Unaudited, Dollars in Thousands) The following is a reconciliation of operating income to EBITDA for the Transportation Segment: 2006 2007 2008 2009 2010 Operating income 122,714 $ 126,508 $ 135,086 $ 139,869 $ 148,571 $ Plus depreciation and amortization expense 47,145 49,946 50,749 50,528 50,617 EBITDA 169,859 $ 176,454 $ 185,835 $ 190,397 $ 199,188 $ Projected incremental operating income range $ 1,000 - 4,000 Plus projected incremental depreciation and amortization expense range 0 - 1,000 Projected incremental EBITDA range $ 1,000 - 5,000 The following is a reconciliation of projected decrease in operating income to projected decrease in EBITDA: Projected decrease in operating income ($ 5,000 - 10,500) ($ 10,000 - 20,500) Plus projected incremental depreciation and amortization expense range 0 - 500 0 - 500 Projected decrease in EBITDA range ($ 5,000 - 10,000) ($ 10,000 - 20,000) Three Months Ended June 30, 2011 Year Ended December 31, 2011 Year Ended December 31, NuStar Energy L.P. utilizes two financial measures, EBITDA and distributable cash flow, which are not defined in United States generally accepted accounting principles (GAAP). Management uses these financial measures because they are widely accepted financial indicators used by investors to compare partnership performance. In addition, management believes that these measures provide investors an enhanced perspective of the operating performance of the partnership's assets and the cash that the business is generating. 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. Neither EBITDA nor distributable cash flow are intended to represent cash flows for the period, nor are they presented as an alternative to net income. They should not be considered in isolation or as a substitute for a measure of performance prepared in accordance with GAAP. Year Ended December 31, 2011 The following is a reconciliation of projected incremental operating income to projected incremental EBITDA related to our internal growth program: |
 Reconciliation of Non-GAAP Financial Information: Storage Segment 27 (Unaudited, Dollars in Thousands) The following is a reconciliation of operating income to EBITDA for the Storage Segment: 2006 2007 2008 2009 2010 Operating income 108,486 $ 114,635 $ 141,079 $ 171,245 $ 178,947 $ Plus depreciation and amortization expense 53,121 62,317 66,706 70,888 77,071 EBITDA 161,607 $ 176,952 $ 207,785 $ 242,133 $ 256,018 $ Projected incremental operating income range $ 16,500 - 25,500 Plus projected incremental depreciation and amortization expense range 8,500 - 9,500 Projected incremental EBITDA range $ 25,000 - 35,000 St. James, LA Terminal Expansion Phase 1 St. Eustatius Distillate Project Projected annual operating income range $ 11,000 - 20,000 $ 4,000 - 8,000 Plus projected annual depreciation and amortization expense range 4,000 - 5,000 1,000 - 2,000 Projected annual EBITDA range $ 15,000 - 25,000 $ 5,000 - 10,000 The following is a reconciliation of projected annual operating income to projected annual EBITDA for certain projects in our storage segment related to our internal growth program: The following is a reconciliation of projected incremental operating income to projected incremental EBITDA: Year Ended December 31, Year Ended December 31, 2011 NuStar Energy L.P. utilizes two financial measures, EBITDA and distributable cash flow, which are not defined in United States generally accepted accounting principles (GAAP). Management uses these financial measures because they are widely accepted financial indicators used by investors to compare partnership performance. In addition, management believes that these measures provide investors an enhanced perspective of the operating performance of the partnership's assets and the cash that the business is generating. 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. Neither EBITDA nor distributable cash flow are intended to represent cash flows for the period, nor are they presented as an alternative to net income. They should not be considered in isolation or as a substitute for a measure of performance prepared in accordance with GAAP. |
 Reconciliation of Non-GAAP Financial Information: Asphalt and Fuels Marketing Segment 28 (Unaudited, Dollars in Thousands) Asphalt Operations Fuels Marketing Operations Asphalt and Fuels Marketing Segment Operating income 53,977 $ 36,884 $ 90,861 $ Plus depreciation and amortization expense 20,164 93 20,257 EBITDA 74,141 $ 36,977 $ 111,118 $ Asphalt Operations Fuels Marketing Operations Asphalt and Fuels Marketing Segment Operating income 50,710 $ 9,919 $ 60,629 $ Plus depreciation and amortization expense 19,463 - 19,463 EBITDA 70,173 $ 9,919 $ 80,092 $ Year Ended December 31, 2007 Year Ended December 31, 2006 Asphalt Operations Fuels Marketing Operations Asphalt and Fuels Marketing Segment Asphalt and Fuels Marketing Segment Asphalt and Fuels Marketing Segment Operating income 76,267 $ 36,239 $ 112,506 $ 21,111 $ 26,815 $ Plus depreciation and amortization expense 14,182 552 14,734 423 - EBITDA 90,449 $ 36,791 $ 127,240 $ 21,534 $ 26,815 $ NuStar Energy L.P. utilizes two financial measures, EBITDA and distributable cash flow, which are not defined in United States generally accepted accounting principles (GAAP). Management uses these financial measures because they are widely accepted financial indicators used by investors to compare partnership performance. In addition, management believes that these measures provide investors an enhanced perspective of the operating performance of the partnership's assets and the cash that the business is generating. 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. Neither EBITDA nor distributable cash flow are intended to represent cash flows for the period, nor are they presented as an alternative to net income. They should not be considered in isolation or as a substitute for a measure of performance prepared in accordance with GAAP. The following tables reconcile operating income to EBITDA for asphalt operations and fuels marketing operations in our asphalt and fuels marketing segment: Year Ended December 31, 2010 Year Ended December 31, 2009 Year Ended December 31, 2008 |
 Reconciliation of Non-GAAP Financial Information: Asphalt and Fuels Marketing Segment (continued) 29 (Unaudited, Dollars in Thousands) The following is a reconciliation of projected incremental operating income to projected incremental EBITDA: Projected incremental operating income range $ 39,500 - 44,000 $ 43,000 - 52,000 Plus projected incremental depreciation and amortization expense range 500 - 1,000 2,000 - 3,000 Projected incremental EBITDA range $ 40,000 - 45,000 $ 45,000 - 55,000 Annually Over Life of Hedges Year Ended December 31, 2011 Projected incremental operating income range $ 26,000 - 34,000 $ 17,000 - 20,000 Plus projected incremental depreciation and amortization expense range 4,000 - 6,000 1,000 - 2,000 Projected incremental EBITDA range $ 30,000 - 40,000 $ 18,000 - 22,000 Less projected allocations for distributable cash flow purposes (10,000) (6,000) Projected incremental distributable cash flow range $ 20,000 - 30,000 $ 12,000 - 16,000 The following is a reconciliation of projected incremental operating income to projected incremental EBITDA to projected distributable cash flow for the San Antonio Refinery acquisition: Three Months Ended June 30, 2011 Year Ended December 31, 2011 NuStar Energy L.P. utilizes two financial measures, EBITDA and distributable cash flow, which are not defined in United States generally accepted accounting principles (GAAP). Management uses these financial measures because they are widely accepted financial indicators used by investors to compare partnership performance. In addition, management believes that these measures provide investors an enhanced perspective of the operating performance of the partnership's assets and the cash that the business is generating. 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. Neither EBITDA nor distributable cash flow are intended to represent cash flows for the period, nor are they presented as an alternative to net income. They should not be considered in isolation or as a substitute for a measure of performance prepared in accordance with GAAP. |