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Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P.

Nustar Energy L.P. · Aug 16, 2017 · 39 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 1
    2017 Citi One-on-One MLP / Midstream Infrastructure Conference Aug 16 17, 2017
  2. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 2
    NuStar Overview
  3. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 3
    Two Publicly Traded Companies Other William E. Greehey Public Unitholders 9.1 million NSH Units 33.9 million NSH Units 21.1% Membership Interest 79.0% Membership Interest IPO Date: 4/16/2001 G.P. Interest in NS Common Unit…
  4. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 4
    Large and Diverse Geographic Footprint with Assets in Key Locations Pt. Tupper, Nova Scotia 7.8MM bbls Linden, NJ 4.6MM bbls St. James, LA 9.9MM bbls Permian Crude System (Midland Basin) Crude Oil Gathering,…
  5. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 5
    Focus Has Been on De-Risking the Business and Restoring Coverage
  6. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 6
    De-Risking the Business and Restoring Coverage For the last 3 years, we have been focused on... De-Risking Our Refocusing On Restoring Our Strengthening Business Our Core Distribution Our Balance Pipeline and Coverage Sheet…
  7. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 7
    Successfully De-Risked the Partnership - Exited the Majority of our Margin-Based Businesses Percentage of Annual Segment EBITDA1 2011 2014 2016 4% 17% 50% 51% 34% 45% 49% 49% Pipeline Storage Refined Product Pipelines…
  8. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 8
    Pipeline Segment Committed and Diversified Pipeline Receipts by Commodity Committed Pipeline Revenues TTM as of 6/30/17 (6/30/17 annual forecast) Other - Other 9% - 8% Take or Pay 92% committed Contractual - through take or pay…
  9. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 9
    Storage Segment Effectively Full Storage Lease Utilization Storage Lease Renewals (as of 6/30/2017) (% as of 6/30/2017) 44% 38% 18% 95% of Leasable Storage Effectively Full < 1 Year 1 to 3 Years 3 Years 10
  10. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 10
    Base Business EBITDA Consistent Performance in Various Market Conditions Historical Pipeline and Storage Segment EBITDA1 ( in millions) Oil Price Crash 690 671 610 Great Recession 554 355 338 498 477 323 455 432 211 277…
  11. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 11
    Coverage Restored in the Midst of Low Crude Oil Price Environment Putting Us in a Position to Participate in Acquisitions Coverage Ratio1 (Trailing Twelve Months) vs Price of Crude (October 2013 March 2017) 1.3 110 100 1.2 90…
  12. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 12
    Permian Crude System Overview
  13. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 13
    Permian Crude System Overview On May 4th, NuStar acquired the Permian Crude System by acquiring 100% of the membership interests in Navigator Energy Services, LLC from First Reserve Energy Infrastructure Fund for 1.5 billion in cash…
  14. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 14
    Permian Crude System Overview (continued) Significant growth prospects through volume ramp from existing producers, bolt-on acquisitions and larger takeaway capacity opportunities Diversified, high-quality producer portfolio with…
  15. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 15
    Permian Crude System Highlights Permian Crude System located in 5 of the 6 most active counties in the Midland Basin Core of the Midland is one of the most economic, resilient and fastest growing basins in the U.S. Core of the…
  16. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 16
    Our Permian Crude System is in the Most Active Areas of the Midland Permian Basin has Rigs by Permian Rigs by Midland 379 rigs operating, Rigs by Top U.S. Play Sub-Basin Counties representing 40% of all U.S. onshore rig Midland 47…
  17. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 17
    Our Permian Crude System is an Integrated Crude System 18
  18. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 18
    Permian Basin Continues to be the U.S. Basin With the Strongest Growth Rig counts in the Permian are up 275% (245% increase in the Midland) since the low in May 2016 Producers have realized lower break-evens due to multi-stack pay…
  19. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 19
    NuStars Permian Crude System Rig Counts Much Higher than Initially Expected Acquisition Current Announcement July 31, 2017 Ship-or-pay Volume Commitments (Mbpd) 74,000 92,000 Dedicated Acreage 500,000 514,000 Dedicated Rig Count…
  20. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 20
    Permian Crude System Acquisition Financing The acquisition purchase price was funded by a combination of equity and debt offerings, consistent with NuStar's targeted credit profile Common Equity Offering On April 18, NuStar issued…
  21. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 21
    Permian Crude System Acquisition Financing (continued) Senior Notes Offering On April 28, we raised 550 million by issuing 5.625% 10-year senior notes due April 28, 2027 NuStar GP Holdings IDR Waiver To demonstrate its strong…
  22. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 22
    Permian Crude System Financial Projections Expect assets to contribute 30 to 50 million of EBITDA1 in 2017 Partially offset by 14 million of transaction related costs associated with closing the acquisition 2018 EBITDA multiple…
  23. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 23
    South Texas Crude Pipeline System Update
  24. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 24
    South Texas Crude Pipeline System Update As expected, the Eagle Ford has seen a modest recovery, with rig counts up a significant 45 rigs from its low on July 29, 2016 Even with this recovery, pipeline capacity in the Eagle Ford…
  25. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 25
    Return to Growth
  26. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 26
    Expect 380 to 420 Million of Internal Growth Spending in 2017 (Dollars in Millions) 2,000 Navigator Acquisition 1,500 2012 to 2017 Average Internal Growth Martin Spend 310 Million per Year Terminal Acquisition 1,500 TexStar…
  27. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 27
    Base Business Projects and Growth Opportunities Included in 2017 Guidance Permian Crude Purchased for 1.5 billion System Growth capital spending projected to be 250 million over the next five years Expansion 123 million of spend to…
  28. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 28
    Growth Projects Currently Evaluating 1.0 to 1.5 Billion Crude Oil Expansion of our Permian Crude System operations Pipeline Expansion of our South Texas Crude Oil Pipeline System Expansion Pursuing a solution to link the two systems…
  29. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 29
    Additional Permian Takeaway Capacity Still Needed Even with many completions delayed, the Permian Basin is on track to add 540 MBPD over the course of this year Several new infrastructure projects have been announced recently to…
  30. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 30
    Finance Update
  31. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 31
    No Debt Maturities until 2018 ( in Millions) 1,250 Receivables Financing Callable in 2018, but Sub Notes 1,000 final maturity in 2043 GO Zone Financing 806 53 Senior Unsecured Notes 750 Revolver 403 500 765 250 550 450…
  32. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 32
    2017 Guidance Summary G&A Reliability Capital Strategic Capital ( in Millions) Annual EBITDA1 Expenses Spending Spending Previous Guidance 620 - 670 100 - 120 35 - 55 400 - 440 Delayed volume ramp on Permian Crude (20) System, lower…
  33. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 33
    Appendix
  34. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 34
    Capital Structure ( in Millions) As of June 30, 2017 (Unaudited) 1.5 billion Credit Facility 765 NuStar Logistics Notes (4.75%) 250 NuStar Logistics Notes (4.80%) 450 NuStar Logistics Notes (5.63%) 550 NuStar Logistics Notes…
  35. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 35
    Reconciliation of Non-GAAP Financial Information NuStar Energy L.P. utilizes financial measures, such as earnings before interest, taxes, depreciation and amortization (EBITDA), distributable cash flow (DCF) and distribution coverage…
  36. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 36
    Reconciliation of Non-GAAP Financial Information (continued) The following is a reconciliation of operating income to EBITDA for the pipeline segment (in thousands of dollars): Year Ended December 31, 2008 2009 2010 2011 2012 2013…
  37. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 37
    Reconciliation of Non-GAAP Financial Information (continued) The following are the non-GAAP reconciliations of income from continuing operations to EBITDA from continuing operations and for the calculation of EBITDA for each of our…
  38. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 38
    Reconciliation of Non-GAAP Financial Information (continued) The following is a reconciliation of (loss) income from continuing operations to EBITDA from continuing operations and DCF from continuing operations (in thousands of dollars,…
  39. Citi One on One MLP and Midstream Infrastructure Conference – Nustar Energy L.P. – slide 39
    Reconciliation of Non-GAAP Financial Information (continued) The following are reconciliations of projected net income to projected EBITDA (in thousands of dollars): Year Ended December 31, 2017 Current Guidance Previous Guidance *…

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