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Wells Fargo Securities Research Economics and Strategy Midstream and Utility Symposium – Nustar Energy L.P.

Nustar Energy L.P. · Dec 5, 2018 · 34 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. Wells Fargo Securities Research Economics and Strategy Midstream and Utility Symposium – Nustar Energy L.P. – slide 1
    Wells Fargo WELLS FARGO Securities Research, Economics & Strategy Midstream and Utility Symposium Securities Research, Economics & Strategy Midstream and Utility Symposium December 5, 2018 December 5, 2018
  2. Wells Fargo Securities Research Economics and Strategy Midstream and Utility Symposium – Nustar Energy L.P. – slide 2
    Introduction
  3. Wells Fargo Securities Research Economics and Strategy Midstream and Utility Symposium – Nustar Energy L.P. – slide 3
    This Year, We Have Worked Hard to Complete Our Stepped Plan to Achieve the Characteristics Demanded by the MLP Sector Strong Coverage Lower Leverage IPO Date: 4/16/2001 Common Unit Price (12/3/18): 25.33 Annualized…
  4. Wells Fargo Securities Research Economics and Strategy Midstream and Utility Symposium – Nustar Energy L.P. – slide 4
    With Our High-Quality Assets, NuStar is Poised to Both Execute on Permian- Driven Growth Opportunities and Optimize Legacy Assets as Recovery Continues Current Profile Total Pipeline Miles: 9,700 Total Storage Capacity:88 MM bbls…
  5. Wells Fargo Securities Research Economics and Strategy Midstream and Utility Symposium – Nustar Energy L.P. – slide 5
    The Permian Basin: Phenomenal Growth Driving Midstream Opportunities
  6. Wells Fargo Securities Research Economics and Strategy Midstream and Utility Symposium – Nustar Energy L.P. – slide 6
    Since the Shale Boom Began, the Permian Basin Has Grown Faster Than Any Other and Driven U.S. Production Growth Overall U.S. Shale Crude Production The Permian Basins growth MMBD (2015-2023) and growth expectations are…
  7. Wells Fargo Securities Research Economics and Strategy Midstream and Utility Symposium – Nustar Energy L.P. – slide 7
    If the Permian Basin Were a Country, It Would Rank 7 Among the Worlds Top Liquids Producers 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…
  8. Wells Fargo Securities Research Economics and Strategy Midstream and Utility Symposium – Nustar Energy L.P. – slide 8
    While Experts Continue to Predict Stronger Oil Prices in 2019, Even at 50 WTI, the Permian Would Continue to Grow Forecasted 2019 oil prices remain above, and in some cases, well above, current prices MBPD Permian Basin oil…
  9. Wells Fargo Securities Research Economics and Strategy Midstream and Utility Symposium – Nustar Energy L.P. – slide 9
    Producers Remain Bullish on Permian Growth, Strength & Resiliency November 7, 2018 Third Quarter 2018 Conference Call October 31, 2018 Third Quarter 2018 Conference Call We were also able to close multiple significant The Permian…
  10. Wells Fargo Securities Research Economics and Strategy Midstream and Utility Symposium – Nustar Energy L.P. – slide 10
    Permian Opportunities
  11. Wells Fargo Securities Research Economics and Strategy Midstream and Utility Symposium – Nustar Energy L.P. – slide 11
    Because of the Permians Track Record and Expected Growth, It is the Genesis for Most Midstream Growth Opportunities, In and Out of the Basin Itself With statistics like the Permians, its no surprise the Basin is the genesis for the…
  12. Wells Fargo Securities Research Economics and Strategy Midstream and Utility Symposium – Nustar Energy L.P. – slide 12
    Intra-Basin Opportunities: We Acquired Our Permian Crude System to Participate, and It Continues to Prove Itself Core of the Core System is located in 5 of the 6 most active counties in the prolific Based on our producer projections, we…
  13. Wells Fargo Securities Research Economics and Strategy Midstream and Utility Symposium – Nustar Energy L.P. – slide 13
    Intra-Basin Opportunities: Our Permian Systems Receipts and EBITDA Are Growing Rapidly 35 360-380 400 30 350 314 300 25 266 250 20 211 187 200 15 159 139 29 27 150 10 19 100 14 12 12 5 50 7 0 0 2Q 2017 3Q 2017 4Q…
  14. Wells Fargo Securities Research Economics and Strategy Midstream and Utility Symposium – Nustar Energy L.P. – slide 14
    Export Opportunities: Incremental Permian Barrels, Over and Above Regional Refiners Needs, Will Move Out of the Gulf Coast Through Export Facilities While the Gulf Coast is home to 45% of U.S. refining capacity, regional refiners…
  15. Wells Fargo Securities Research Economics and Strategy Midstream and Utility Symposium – Nustar Energy L.P. – slide 15
    Export Opportunities: NuStars CCNB Dock Facility is Uniquely Positioned to Benefit From Export Growth With around 2.0 million BPD of additional Permian long-haul pipeline capacity coming into service over the next two years and headed…
  16. Wells Fargo Securities Research Economics and Strategy Midstream and Utility Symposium – Nustar Energy L.P. – slide 16
    Export Opportunities: Our Agreement With Trafigura Leverages Our South Texas System and Our CCNB Asset Platform for Permian Exports, in the Near- and Long- Term Trafiguras four-year commitment to transport and store WTI on PAAs Cactus…
  17. Wells Fargo Securities Research Economics and Strategy Midstream and Utility Symposium – Nustar Energy L.P. – slide 17
    Spillover Opportunities: Our South Texas Crude System is Uniquely Positioned to Benefit From the Inland WTI Price Differentials, Which Create Opportunities for Both Shippers and Resourceful Midstream Operators Differentials have widened…
  18. Wells Fargo Securities Research Economics and Strategy Midstream and Utility Symposium – Nustar Energy L.P. – slide 18
    Spillover Opportunities: We Are Also Working to Supply Permian Barrels to the Ardmore and McKee Refineries from Plains Sunrise II Pipeline Starting in November, our customer will have the optionality to supply the Ardmore and McKee…
  19. Wells Fargo Securities Research Economics and Strategy Midstream and Utility Symposium – Nustar Energy L.P. – slide 19
    Spillover Opportunities PLUS Export Opportunities: Our St. James Terminal is Benefiting From Price Dislocations Now and Plan to Capitalize on Export Growth in the Future St. James Terminal: 9.9 million barrels of crude oil storage We…
  20. Wells Fargo Securities Research Economics and Strategy Midstream and Utility Symposium – Nustar Energy L.P. – slide 20
    Optimizing Our Legacy Assets
  21. Wells Fargo Securities Research Economics and Strategy Midstream and Utility Symposium – Nustar Energy L.P. – slide 21
    We Are Optimizing Our Mature Systems, As Markets Evolve We identifying micro-dislocations on our mature systems, and West Coast Biofuel: augmenting Estimated Investment: Central East- Council underutilized assets 72.1 MM Bluffs:…
  22. Wells Fargo Securities Research Economics and Strategy Midstream and Utility Symposium – Nustar Energy L.P. – slide 22
    Our Projects to Facilitate Export of Refined Products to Supply Northern Mexico Are Progressing on Schedule Several years back, we recognized Northern Mexico Supply: Estimated Investment: the growing need for refined 192.3 MM…
  23. Wells Fargo Securities Research Economics and Strategy Midstream and Utility Symposium – Nustar Energy L.P. – slide 23
    Our Central East- Council Bluffs System Offers Multiple Opportunities to Increase Our Share of a Mature Market Our Council Bluffs acquisition provides us with expanded pipeline connectivity to offer our customers additional options for…
  24. Wells Fargo Securities Research Economics and Strategy Midstream and Utility Symposium – Nustar Energy L.P. – slide 24
    The West Coast Presents the Most Challenging Regulatory Environment for the U.S. Energy Industry, But Our Biofuel Strategy Leverages Regulations to Develop Opportunities Tacoma Renewable fuels, including renewable diesel, biodiesel,…
  25. Wells Fargo Securities Research Economics and Strategy Midstream and Utility Symposium – Nustar Energy L.P. – slide 25
    Looking Ahead to 2019
  26. Wells Fargo Securities Research Economics and Strategy Midstream and Utility Symposium – Nustar Energy L.P. – slide 26
    With the Closing of Our UK/Europe Sale, We Have Completed Our 2018 Plan to Achieve the Characteristics Demanded by the MLP Sector Last week, we closed on the sale of our UK/European assets for 270 million, and, with that, completed our…
  27. Wells Fargo Securities Research Economics and Strategy Midstream and Utility Symposium – Nustar Energy L.P. – slide 27
    Executing Our Plan Positioned NuStar to Take Advantage of Growth Opportunities, But We Are Rigorously Evaluating Each Project and Exercising Capital Discipline We are carefully evaluating projects and managing costs to ensure two…
  28. Wells Fargo Securities Research Economics and Strategy Midstream and Utility Symposium – Nustar Energy L.P. – slide 28
    In 2019, We Plan to Continue Building on Our Foundational Strengths to Ensure Strong, Stable Growth in the Future Strong Coverage Lower Leverage Disciplined Project Management + Maximized Self-Funding Simplified Structure +…
  29. Wells Fargo Securities Research Economics and Strategy Midstream and Utility Symposium – Nustar Energy L.P. – slide 29
    Appendix
  30. Wells Fargo Securities Research Economics and Strategy Midstream and Utility Symposium – Nustar Energy L.P. – slide 30
    Debt Maturity Schedule (as of September 30, 2018) We have no significant maturities until 2020 1,750 Receivables Financing 1,521 Sub Notes 1,500 64 GO Zone Financing 1,250 450 Senior Unsecured Notes Revolver 1,000 750 500…
  31. Wells Fargo Securities Research Economics and Strategy Midstream and Utility Symposium – Nustar Energy L.P. – slide 31
    Capital Structure as of September 30, 2018 ( in Millions) 1.75 billion Credit Facility 1,007 Series D Preferred Units 560 NuStar Logistics Notes (4.75%) 250 Series A, B and C Preferred Units 756 Common Equity, General Partner and…
  32. Wells Fargo Securities Research Economics and Strategy Midstream and Utility Symposium – Nustar Energy L.P. – slide 32
    Reconciliation of Non-GAAP Financial Information 33
  33. Wells Fargo Securities Research Economics and Strategy Midstream and Utility Symposium – Nustar Energy L.P. – slide 33
    Reconciliation of Non-GAAP Financial Information (continued) 34
  34. Wells Fargo Securities Research Economics and Strategy Midstream and Utility Symposium – Nustar Energy L.P. – slide 34
    Reconciliation of Non-GAAP Financial Information (continued) 35

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