NavSight (NSH) 8-K/A Results of Operations and Financial Condition

NuStar GP Holdings, LLC

Consolidated Financial Information

(Unaudited, Thousands of Dollars, Except Unit and Per Unit Data)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
Statement of Income Data:
Equity in earnings of NuStar Energy L.P.	$	18,996		$	18,332		$	53,257		$	51,443
General and administrative expenses		(749	)		(671	)		(2,235	)		(2,121	)
Other income (expense), net		108			15			(557	)		8,035
Interest expense, net		(116	)		(245	)		(459	)		(902	)
Income before income tax benefit		18,239			17,431			50,006			56,455
Income tax benefit		123			346			600			701
Net income	$	18,362		$	17,777		$	50,606		$	57,156
Basic and diluted net income per unit	$	0.43		$	0.42		$	1.19		$	1.35
Equity in Earnings of NuStar Energy L.P.:
General partner interest	$	1,223		$	1,195		$	3,294		$	3,254
General partner incentive distribution		8,972			8,568			26,503			24,736
General partner's interest in earnings and incentive distributions of NuStar Energy L.P.		10,195			9,763			29,797			27,990
Limited partner interest in earnings of NuStar Energy L.P.		9,522			9,290			25,623			25,616
Amortization of step-up in basis related to NuStar Energy L.P.'s assets and liabilities		(721	)		(721	)		(2,163	)		(2,163	)
Equity in earnings of NuStar Energy L.P.	$	18,996		$	18,332		$	53,257		$	51,443
Distributable Cash Flow (Note 1):
Cash distributions from NuStar Energy L.P. associated with:
General partner interest	$	1,628		$	1,592		$	4,847		$	4,635
General partner incentive distribution		8,972			8,568			26,503			24,736
Limited partner interest—common units		11,271			11,114			33,506			32,886
Total distributions from NuStar Energy L.P.		21,871			21,274			64,856			62,257
Deduct expenses of NuStar GP Holdings, LLC:
General and administrative expenses		(749	)		(671	)		(2,235	)		(2,121	)
Income tax benefit		123			346			600			701
Interest expense, net		(116	)		(245	)		(459	)		(902	)
Distributable cash flow	$	21,129		$	20,704		$	62,762		$	59,935
Weighted average number of common units outstanding		42,544,659			42,514,494			42,544,659			42,514,494
Distributable cash flow per unit	$	0.50		$	0.49		$	1.48		$	1.41
Cash distributions to be paid to the unitholders of NuStar GP Holdings, LLC:
Distribution per unit	$	0.495		$	0.480		$	1.470		$	1.390
Total distribution	$	21,059		$	20,407		$	62,540		$	59,095

NuStar GP Holdings, LLC

Consolidated Financial Information – Continued

(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 a substitute 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 flow and net cash provided by operating activities:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
Net Income	$	18,362		$	17,777		$	50,606		$	57,156
Less equity in earnings of NuStar Energy L.P.		(18,996	)		(18,332	)		(53,257	)		(51,443	)
Plus cash distributions from NuStar Energy L.P.		21,871			21,274			64,856			62,257
Other (income) expense, net		(108	)		(15	)		557			(8,035	)
Distributable cash flow		21,129			20,704			62,762			59,935
Less cash distributions from NuStar Energy L.P.		(21,871	)		(21,274	)		(64,856	)		(62,257	)
Plus distributions of equity in earnings of NuStar Energy L.P.		18,996			18,332			53,257			51,443
Net effect of changes in operating accounts		1,465			10,782			1,772			8,831
Net cash provided by operating activities	$	19,719		$	28,544		$	52,935		$	57,952