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Citi MLP Infrastructure Conference – Nustar Energy L.P.

Nustar Energy L.P. · Aug 14, 2019 · 40 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 MLP Infrastructure Conference – Nustar Energy L.P. – slide 1
    2019 Citi O n e - o n - O n e M i d s t re a m / E n e r g y I n f ra s t r u c t u r e C o n fe r e n c e August 14 15, 2019
  2. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 2
    The Permian Basin: Introduction Phenomenal Growth Driving Midstream Opportunities
  3. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 3
    This Year, We Have Continued to Build on the Strong Foundation We Established in 2018 Common Unit Price(1): 27.15 Distribution/CU/Year: 2.40 Yield(1): 8.8% Market Cap(1): 3 billion Credit Ratings: Fitch: BB/Stable NYSE: NS Moodys:…
  4. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 4
    NuStars Second Quarter 2019 Results Illustrate Our Progress and Growth Q2 Q2 2018 2019 Pipeline Adjusted DCF Q218 Throughputs EBITDA Q219 Debt-to- Debt-to- EBITDA EBITDA 4.72X 3.95X 1 - Please see Appendix for…
  5. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 5
    Much of NuStars Growth Has Emerged From Opportunities Driven by Continued Strong Shale Production Growth AP Master 8-12-19 6
  6. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 6
    Our Recent Divestitures Have Had a Substantial Positive Impact on Our Financial Strength, and the St. Eustatius Sale Provided Benefits Even Beyond Our Balance Sheet Q4 2018 Q3 2019 Over Sale of Sale of St. Eustatius…
  7. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 7
    We Have Improved Our Expected Full-Year 2019 Coverage and Leverage, While Keeping Our 2019 Strategic Capital Spending Range Steady Prior Revised 2019 DCF COVERAGE 1.2-1.3X 1.3-1.4X 2019 Debt-to-EBITDA 4.3X 4.1X 2019…
  8. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 8
    2019 Capital Project Program Update
  9. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 9
    We Continue to Expect to Spend 500-550MM This Year to Execute on Our 2019 Capital Spending Program Our 2019 project program is primarily devoted to spending for: Shale Production Growth Projects Across Texas: Permian Crude System…
  10. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 10
    Texas Shale Pipeline + Export Projects: We Are Continuing to EXPAND and CONNECT Our Permian Crude System- to New Wells and to Third-Party Pipelines- in Step With Our Customers Needs Storage: 1,000,000 BBLs Pipeline: 870 Miles PAA…
  11. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 11
    Texas Shale Pipeline + Export Projects: Our Permian Crude Systems Receipts and EBITDA Continue to Grow Rapidly We are currently moving nearly 400MBPD 400 370 35 349 NuStars Permian 327 350 Crude System Performance 314 30 (by…
  12. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 12
    Texas Shale Pipeline + Export Projects : The Permian Basins Resiliency and Efficiency Should Drive Strong Growth, for the Rest of 2019 and Beyond Geopolitical factors have 2019-2020 Pricing Forecasts 70.00 and continue to drive 65.00…
  13. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 13
    Texas Shale Pipeline + Export Projects: Our South Texas Crude System and Corpus Export Assets Utilization Has Grown, and We Expect Throughput to Grow, For Both Permian WTI and Eagle Ford Barrels We are currently seeing pipeline receipts…
  14. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 14
    Texas Shale Pipeline + Export Projects: We Have Seen Our South Texas Crude System Utilization Improve to Near 2015 Levels We expect receipts and EBITDA to continue to rise in the second half of 2019 and into 2020 as we see benefit…
  15. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 15
    Texas Shale Pipeline + Export Projects: We Are Now Transporting Permian Barrels From a Connection With Plains Sunrise II Pipeline We provide our customer with optionality to supply the Ardmore and McKee refineries with Permian barrels…
  16. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 16
    Texas Shale Pipeline + Export Projects: NuStars Corpus Facility is Now Handling the Leading Edge of the Impending Wave of Permian Long-haul Barrels 100 Series NuStars Corpus Export Facility 1.0MMbbl 400 Series 200 Series 1.7MMbbl…
  17. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 17
    Texas Shale Pipeline + Export Projects: Our Project for Trafigura Utilizes Our Existing Assets and Expands Our Ability to Facilitate Growing Gulf Coast Exports Trafiguras four-year commitment to transport and store WTI on our South…
  18. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 18
    Northern Mexico Refined Products Supply: Mexicos Refined Product Demand is Expected to Continue to Exceed Its Infrastructures Capacity 1,200 Mexico refineries currently operate around 30% of 1,155 nameplate capacity due to weak returns…
  19. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 19
    The Permian Beyond 2019:Basin: Increased EBITDA + Phenomenal Growth Decreased Capital Driving Midstream Opportunities Spending AP Master 8-12-19
  20. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 20
    In 2020, With Our 2019 Capital Projects Complete, We Expect a Significant Ramp-Down in Spending We intend to focus on low-spend, low-multiple projects to enhance our existing footprint to take advantage of market opportunities,…
  21. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 21
    North American Shale Play Production Growth has Reversed Crude Flows, Which is Now Driving Additional Shale Crude to St. James, LA As rapid growth in U.S. shale production has allowed refiners to replace much of crude imports with…
  22. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 22
    Our St. James Terminal has the Capacity, Connectivity and Potential Expandability to Take Maximum Advantage of Changing Regional Crude Flows as They Develop We have executed contracts for 20MBPD and expect over 30MBPD per month for…
  23. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 23
    We Will Continue to Develop Bio-Fuels Logistics Projects for Our Customers to Address Market Dislocations Driven by Aggressive Carbon Emissions Reduction Goals in West Coast States Regulatory priorities on the West Coast are…
  24. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 24
    2019 Project Completion for Steady Future Continued Growth Improvement: Our 2019 Plan AP Master 8-12-19
  25. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 25
    In the Meantime, We Continue to Focus on Completing Our 2019 Project Program to Generate Solid, Consistent Growth, as Demonstrated by Our Second Quarter Results Project execution 2019 Projects List: Selby Renewable Diesel Stockton…
  26. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 26
    We Will Continue to Make Safe, Responsible and Efficient Operations NuStars 1 Priority Our safety statistics reflect our commitment to safe, responsible operations In 2018, as in years past, our safety statistics were substantially…
  27. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 27
    And We Will Remain Committed to our Employees and our Communities Across North America NuStar has been recognized with numerous awards for its strong corporate culture NuStar employees contributed 90,000 volunteer hours in 2018…
  28. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 28
    Appendix Continued Improvement: Our 2019 Plan
  29. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 29
    Producers in the Basin Remain Bullish on Permian Growth, Strength & Resiliency When we first described the cadence over the next The 2019 drilling programs should exhibit a significant two years, we described 2020 as production…
  30. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 30
    Long-Haul Pipelines Will Bring an Additional 2.1MMBPD Capacity to Corpus Christi For now, Gulf Coast export Permian Crude Pipeline Takeaway vs. Production facilities, like Permian Basin 8,000 (thousand barrels per day) producers and…
  31. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 31
    By Mid-2020, the Port of Corpus Christi is Expected to Become the Largest U.S. Crude Export Hub Regional refiners consumption has topped U.S. Gulf Coast Oil Exports by Hub out, which means that a significant (MMBPD) 7.0 Cactus II,…
  32. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 32
    Our New Connections in Taft, Texas Will Establish Our Footprint in This Emerging South Texas Crude Oil Hub The long-haul pipeline projects 2MMbpd Taft from the Permian to South from the Texas were developed to 15 miles to Permian…
  33. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 33
    West Coast Bio-Fuel Strategy Projects (Scheduled for Completion in 2019-2021) Together, these projects comprise a renewable diesel/biodiesel distribution system that allows us to capture market share, build important customer…
  34. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 34
    Historic and 2019 Estimated Capital Spending We are carefully managing our capital spending to ensure we maintain our financial strength and further lower our leverage and continue to grow our EBITDA with high-return projects Next…
  35. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 35
    Debt Maturity Schedule We have applied the proceeds from recent dispositions to our revolver balance, which has allowed us to reduce leverage and redeploy capital to invest in low-multiple projects 234MM of proceeds from our sale of…
  36. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 36
    Capital Structure as of June 30, 2019 ( in Millions) 1.4B Credit Facility 543 Series D Preferred Units 573 NuStar Logistics Notes (4.75%) 250 Series A, B and C Preferred Units 756 NuStar Logistics Notes (4.80%) 450 Common Equity…
  37. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 37
    Reconciliation of Non-GAAP Financial Information 38
  38. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 38
    Reconciliation of Non-GAAP Financial Information (continued) 39
  39. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 39
    Reconciliation of Non-GAAP Financial Information (continued) 40
  40. Citi MLP Infrastructure Conference – Nustar Energy L.P. – slide 40
    Reconciliation of Non-GAAP Financial Information (continued) 41

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