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MLP and Energy Infrastructure Conference – Nustar Energy L.P.

Nustar Energy L.P. · May 15, 2019 · 43 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. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 1
    MLP & Energy Infrastructure Conference May 15 16, 2019
  2. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 2
    The Permian Basin: Introduction Phenomenal Growth Driving Midstream Opportunities
  3. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 3
    Last Year, NuStar Completed Its Stepped Plan to Achieve the Characteristics Demanded by the MLP Sector Strong Coverage Lower Leverage Simplified Structure/ Governance NYSE: NS No IDR Burden Maximized Self- Funding 4
  4. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 4
    In 2018, We Met, or Surpassed, All of Our Goals We surpassed our year-end coverage target We lowered our leverage to our three-year target in a single year We executed on our 2018 strategic capital program, efficiently and…
  5. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 5
    With Our High-Quality Assets, NuStar is Now Poised to Execute on Permian-Driven Growth Opportunities and to Continue Optimizing Our Legacy Assets Current Profile Total Enterprise Value: 7 B Total Assets: 6 B Total Pipeline Miles:…
  6. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 6
    The Permian Basin: Phenomenal Growth Driving Midstream Opportunities
  7. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 7
    The U.S. is Now the Global Leader in Crude Production, Thanks in Large Part to the Permian Basins Tremendous Growth U.S. total crude production grew U.S. Shale Production 2015-2023 to 12.0 MMBPD by the end of 12 MMBPD 2018,…
  8. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 8
    The Breadth and Depth of the Permians Growth Potential is Unprecedented If the Permian Basin were a country, it would rank 7 among the worlds top liquids producers A pool of more recoverable oil than any field in the world except…
  9. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 9
    And the Basins Resiliency and Efficiency Should Drive Strong Growth, in 2019 and Beyond Geopolitical factors have and continue to drive volatility in forecasted oil prices Despite volatility, analysts are projecting WTI prices…
  10. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 10
    Producers in the Basin Remain Bullish on Permian Growth, Strength & Resiliency I think the main point on the slide is the fact that we've The Permian continues to dominate global activity had 6% increase from fourth quarter, and…
  11. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 11
    The Permians Track Record, Along With Its Projected Growth, is Driving Midstream Growth Opportunities, In the Basin and Beyond With a track record like the Permians, its no surprise the Basin is the genesis for the majority of, as well as…
  12. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 12
    INTRA-BASIN OPPORTUNITIES : Our Permian Crude System Continues to Outpace the Permian Basin and Prove Itself Core of the Core LOCATION: System Throughput Growth is Outpacing the Permian Basin CORE OF THE CORE 5 of the 6 most…
  13. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 13
    INTRA-BASIN OPPORTUNITIES: Our Permian Systems Receipts and EBITDA Are Growing Rapidly We expect to achieve throughput of 450MBPD by year-end 2019 400 35 NuStars Permian 349 327 350 Crude System Performance 314 30 (by Quarter)…
  14. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 14
    EXPORT OPPORTUNITIES: Long-Haul Pipelines Will Bring an Additional 2.1MMBPD Capacity to Corpus Christi For now, Gulf Coast export facilities, like Permian Basin Permian Crude Takeaway vs. Production (thousand barrels per day)…
  15. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 15
    EXPORT OPPORTUNITIES: By Mid 2020, the Port of Corpus Christi is Expected to Become the Largest U.S. Crude Export Hub Regional refiners consumption has U.S. Gulf Coast Oil Exports by Hub topped out, which means that a 7.0 (MMBPD)…
  16. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 16
    EXPORT OPPORTUNITIES : NuStars Corpus Christi North Beach (CCNB) Facility has the Capacity to Handle the Leading Edge of the Impending Wave of Permian Long-haul Barrels NuStars CCNB Export Facility 100 Series 1.0MMbbl 400 Series…
  17. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 17
    EXPORT OPPORTUNITIES : ...And Our Project for Trafigura Utilizes Our Existing Assets While Expanding Our Ability to Meet Growing Export Demand Trafiguras four-year commitment to transport and store WTI on our South Texas System and…
  18. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 18
    EXPORT OPPORTUNITIES: Our Connection Facility in Taft Will Establish Our Footprint in Taft, Texas, the Emerging South Texas Crude Oil Hub The Permian long-haul pipeline 2MMbpd Taft projects were developed to from the maximize shippers…
  19. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 19
    SPILLOVER OPPORTUNITIES: Beyond Its Role in Our Corpus Export Project, Our South Texas Crude System Benefits Not Only From the Inland WTI Price Differentials, But the Systems Contracted Eagle Ford T&D Volumes Differentials widened…
  20. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 20
    SPILLOVER OPPORTUNITIES : We Are Supplying Permian Barrels to the Ardmore and McKee Refineries from Plains Sunrise II Pipeline We provide our customer with optionality to supply the Ardmore and McKee refineries with Permian barrels…
  21. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 21
    SPILLOVER plus EXPORT OPPORTUNITIES: Our St. James Terminal is a World-class Terminal Located in the Heart of the St. James Hub NuStars St. James facility has the capacity to handle the changing crude flows in the region with:…
  22. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 22
    ST. JAMES EMERGING OPPORTUNITIES: Dramatic Changes in Crude Flows From Shale Production are Driving Additional Crude to St. James Rapid growth in U.S. shale production has allowed refiners to replace much of crude imports with…
  23. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 23
    ST. JAMES EMERGING OPPORTUNITIES: St. James is Benefiting From Price Dislocations Now and is Positioned to Participate in Export Growth in the Future We have executed contracts and expect 10 trains per month for unit train off-loading…
  24. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 24
    Optimizing The Permian Basin: Our LegacyGrowth Phenomenal AssetsDriving Midstream Opportunities
  25. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 25
    We Are Also Optimizing Our Mature Systems to Profit From Evolving Market Demand We continue to identify micro-dislocations on our mature systems, and augment underutilized assets with projects and bolt-on acquisitions West Coast…
  26. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 26
    Mexicos Refined Product Demand is Expected to Continue to Exceed Its Infrastructures Capacity Mexico refineries currently operate around 30% of nameplate capacity due to weak returns and historical under-investment With limited…
  27. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 27
    Our Projects to Facilitate Export of Refined Products to Supply Northern Mexico Are Progressing on Schedule We developed projects to fulfill Northern Mexico that growing demand and Supply: Estimated expand use of underutilized…
  28. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 28
    The West Coasts Aggressive Carbon Emissions Reduction Goals Have Catalyzed Market Dislocations That Our West Coast Assets Are Well-Positioned to Address Regulatory priorities on the West Coast are dramatically West Coast increasing…
  29. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 29
    We Have Worked With Key Customers to Develop Low-Capital Renewable Fuels Storage Projects at Several of Our West Coast Facilities to Meet Regional LCFS Mandates Together, these projects comprise a renewable diesel/biodiesel…
  30. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 30
    We Have Increased EBITDA and Market Share For Our Central East- Refined Products System With Targeted, Low-Capital Projects In the past six years, we have been able to increase the systems EBITDA by over 60%, with limited capital…
  31. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 31
    In the 2H 2019 and Early 2020, We Could Benefit From Additional Segregations at Certain Locations While the full implications remain to be seen, IMO 2020 may present storage opportunities, through additional segregations, that we have…
  32. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 32
    Good Corporate Citizenship has Always Been the Foundation of NuStars Culture of Excellence, and We Remain Committed to Responsible Stewardship Safe and responsible operations : Our statistics reflect our commitment In 2018, we had an…
  33. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 33
    Continued Improvement: Our 2019 Plan Continued Improvement: Our 2019 Plan
  34. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 34
    Our Work in 2018 Positioned NuStar For Growth; in 2019, We Are Focused on Discipline, Execution and Continued Improvement We are carefully managing our capital spending to ensure we maintain our financial strength and further lower…
  35. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 35
    By Selling Our St. Eustatius Facility, We Will Focus All Our Resources on Lowering Our Debt Metrics and Our High-Return Growth Projects in North America Since January, when the U.S. imposed PDVSA-specific sanctions, it has become…
  36. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 36
    This Sale is an Important Step in our Successful Implementation of our 2019 Plan to Ensure Strong, Stable Growth in the Future Strong Coverage Low Leverage Maximum Self-Funding Simplified Structure No IDRs Disciplined Project…
  37. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 37
    Appendix
  38. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 38
    Our Permian Crude System is Core of the Core PAA SUNRISE II (3Q-2019) NS COLORADO PAA BASIN CITY TERMINAL BRIDGETEX, SUNOCO PE & WTG TRUCK LOADING CENTURION DELEK BIG SPRING PIPELINE REFINERY 3rd Party Connections…
  39. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 39
    We Have No Significant Debt Maturities Until Late 2020 Debt Maturities 1,500 (As of 3/31/2019) 1 1,371 (MM) 1 Receivables Financing 1,250 Sub Notes 450 GO Zone Financing 1,000 Senior Unsecured Notes Revolver 750 500…
  40. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 40
    Capital Structure as of March 31, 2019 ( in Millions) 1.4B Credit Facility 921 Series D Preferred Units 568 NuStar Logistics Notes (4.75%) 250 Series A, B and C Preferred Units 756 NuStar Logistics Notes (4.80%) 450 Common Equity…
  41. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 41
    Reconciliation of Non-GAAP Financial Information 42
  42. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 42
    Reconciliation of Non-GAAP Financial Information (continued) 43
  43. MLP and Energy Infrastructure Conference – Nustar Energy L.P. – slide 43
    Reconciliation of Non-GAAP Financial Information (continued) 44

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