J.P. Morgans Mid-West Energy Infrastructure/MLP 1x1 Forum September 20, 2018
Overview
Our Newly Simplified Structure: One Public Company, No IDRs IPO Date: 4/16/2001 Common Unit Price (9/18/18): 27.78 Annualized Distribution/Common Unit: 2.40 Yield (9/18/18): 8.6% Market Capitalization: 3.0 billion…
NuStar Has a Broad, Diverse Portfolio of Assets Current Profile Total Pipeline Miles: 9,700 Total Storage Capacity:97MM bbls Volumes Handled(1): 1.4MM BPD pipeline volumes 330M BPD storage throughput terminal volumes Total…
NuStars Assets are Well-Balanced and Have Performed Consistently, Through Market Challenges 2017 EBITDA1, By Segment Historical Pipeline and Storage Segment EBITDA1 ( in millions) 707 690 671 610 Oil Price Crash 554 50% 49%…
With Our Simplification Complete, We Have Achieved the Five Characteristics Critical to MLP Success as Markets Recover Minimal Capital Needs Simplified Structure/ Lower Leverage Transparent Governance Strong, Strong…
We Are Well-Positioned to Build on Our Foundational Strengths Expected 2018 Debt/EBITDA1 of about 4.7x Simplified Structure & No IDRs Lower Leverage & Strong Coverage + Expected 2018 distribution coverage1 in the range of…
Permian Crude System Growth Platform
The Permian Phenomenon A massive oil basin of epic proportions A pool of more recoverable oil than any field in the world except for Saudi Arabias Ghawar 250 miles wide, 300 miles long (75,000 square miles) The Wolfcamp Formation,…
Advances in Drilling Activity and Technology Are Driving the Basins Unparalleled Growth Permian Basin rig count, now 485, Midland Basin Production 3.31 has grown from 342 or 42%, since (MMBOE/D) we acquired our system last May1…
Producers Remain Bullish on Permian Growth, Strength & Resiliency August 2, 2018 Second Quarter 2018 Conference Call August 9, 2018 Second Quarter 2018 Conference Call With nearly half the drilling rigs and completion crews in the…
Our Permian Crude System Continues to Prove Itself Core of the Core Our system throughput is now 330,000 BPD, up 164% since the System is located in 5 of the 6 most active counties in the acquisition prolific Midland Basin Permian…
We are Focused on Three Key Objectives to Continue to Realize Our Systems Growth Potential Working to match producers with downstream markets with firm space Providing Identifying new shippers and marketers with downstream pipeline…
Growth Projects Outside the Permian
Outside the Permian, We Have Developed Projects to Utilize Our Existing Assets to Enhance Unitholder Value South Texas Crude & Northern Mexico Corpus Christi-North Refined Product Beach Dock Supply Connections West Coast St.…
Permian Shippers/Producers are Incentivized to Take Advantage of the Price Dislocation Between WTI-Midland and WTI-Houston The basins greater-than-expected production ramp-up has widened the differential as the market anticipates…
Completions of Long-Haul Capacity Are Expected to Narrow the Price Dislocation, But Permian Production is Projected to Drive Strong Growth in Exports According to EIA, the U.S. is now the largest crude oil producer, surpassing Russia…
And NuStars CCNB Dock Facility is Uniquely Positioned to Benefit From That Growth With between 1.4 and 2.0 million BPD of additional Permian long-haul pipeline capacity coming into service over the next two years and headed…
We Have Also Recently Renewed T&D Commitments in South Texas We now have T&D contracts for 116,000 BPD Renewed commitments totaling 50,000 BPD with existing customers Maintaining throughput by offering industry-leading service options…
Our Northern Mexico Supply Projects Are Progressing On Schedule Nuevo Laredo Project - Valero Energy has recently announced their plans related to our projects to supply refined products to Nuevo Laredo via our Odem and Laredo pipeline…
Our Northern Mexico Supply Projects Are Progressing On Schedule (continued) These long-term throughput & deficiency contracts will support a series of healthy-return capital projects to: Connect to pipelines and third-party rail…
The Council Bluffs System That We Acquired in April is Performing Well as We Complete Our Integration In April, we closed on an immediately accretive 38 million acquisition of CHS Council Bluffs system, consisting of a 227-mile…
NuStar is Executing Our West Coast Bio-Fuel Strategy With Multiple Projects Across the Region Bio- and low-carbon fuel mandates in West Coast states have created opportunities for clean products storage in our assets in the…
Our St. James Terminal is Also Benefiting From Price Dislocations We executed new contract for unit train off-loading due to widening differentials out of the Permian (expect 3- 10 trains per month) St. James is likely to be among…
Finance Update
We Project 2018 Strategic Capital Spending Needs In the Range of 360 to 390 Million 2,000 1,789 1,500 Majority of 2018 spending relates to: Permian Crude Permian Crude System (190) 1,000 System 1,462 Northern Mexico…
Debt Maturity Schedule (as of June 30, 2018) We have no significant maturities until 2020 1,750 Receivables Financing 1,524 Sub Notes 1,500 56 GO Zone Financing 1,250 450 Senior Unsecured Notes Revolver 1,000 750 500…
Capital Structure as of June 30, 2018 ( in Millions) 1.75 billion Credit Facility 1,018 NuStar Logistics Notes (4.75%) 250 Series D Preferred Units Mezzanine2 371 NuStar Logistics Notes (4.80%) 450 NuStar Logistics Notes (5.625%)…
Appendix
Reconciliation of Non-GAAP Financial Information 32
Reconciliation of Non-GAAP Financial Information (continued) 33
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