Reconciliation of Non-GAAP Financial Information: Storage Segment 28 (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 $ 11,000 - 20,000 Plus projected incremental depreciation and amortization expense range 9,000 - 10,000 Projected incremental EBITDA range $ 20,000 - 30,000 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 a financial measure, EBITDA, that 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 partnership performance. In addition, management believes that this measure provides investors an enhanced perspective of the operating performance of the partnership's assets. EBITDA is not intended nor presented as an alternative to net income. EBITDA should not be considered in isolation or as a substitute for a measure of performance prepared in accordance with United States generally accepted accounting principles. |
