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Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P.

Nustar Energy L.P. · Dec 11, 2019 · 41 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 Midstream and Utilities Symposium – Nustar Energy L.P. – slide 1
    2019 Wells Fargo M i d s t re a m & U t i l i t i e s S y m p o s i u m December 11-12, 2019
  2. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 2
    The Permian Basin: Introduction Phenomenal Growth Driving Midstream Opportunities
  3. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 3
    In 2018, NuStar Completed Its Stepped Plan to Achieve the Characteristics Demanded by the MLP Sector Strong Coverage Lower Leverage Common Unit Price(1): 28.29 Distribution/CU/Year: 2.40 Yield(1): 8.5% Market Cap(1): 3 billion…
  4. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 4
    We are on Target to Accomplish Our Three Core Operational Goals for 2019 2019 Project Completion: Selby Renewable Diesel 1- Project Stockton Biodiesel execution Permian (CO City)/Sunrise Connection Midland Connection Projects…
  5. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 5
    And We Expect to Meet or Surpass All Our 2019 Financial Goals as Well In July, we closed on the sale of the St. Eustatius operations for a healthy double-digit multiple, and we deployed those proceeds to lower our debt further and…
  6. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 6
    NuStars Third Quarter 2019 Results Demonstrated Our Consistent Progress and Solid Growth in 2019 Q3 Q3 2018 2019 Pipeline EBITDA DCF (Continuing (Continuing Q318 Throughputs Operations) Operations) Q319 Debt-to- Debt-to- EBITDA…
  7. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 7
    We Expect to Turn in a Strong 2019, and Even Stronger 2020 2019 2020 EBITDA from 715-765MM 625-675MM 14% Continuing Operations DCF Coverage 1.3-1.4X 1.4-1.6X 11% Strategic Capital 485-515MM 300-350MM 35% 1 - Please see…
  8. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 8
    In 2020, We Plan a Smaller Capital Program That Will Continue to Focus on Our Key Opportunities With our 2019 project program complete, we plan to spend about 35% less in 2020, as our planned strategic capex returns to our historic…
  9. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 9
    Permian Crude System
  10. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 10
    The U.S. is Now the Global Leader in Crude Production, Thanks in Large Part to the Permian Basins Tremendous Growth Permian (shale + conv) U.S. Crude Production U.S. total crude Annual Average-2014 - 2024 Rest of Major Shale…
  11. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 11
    The Permian is Expected to Continue to Drive the Lions Share of U.S. Shale Production Growth, Across Price Scenarios Even with widely publicized concerns MMBPD Projected Permian Production regarding E&P capital spending cuts, the 7…
  12. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 12
    Despite Declining Rig Counts, Permian Production Growth Remains Robust, Thanks to Improved Rig Efficiency and Well Performance Permian rig counts are down of rigs 700 U.S./Permian % growth 7% 14.5% YoY, less than the rest of Rig…
  13. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 13
    Our System Continues to Outpace the Permian Basin and Prove Itself Core of the Core Our systems volumes are up 253% NuStars Permian Crude System Performance 395 450 since acquisition, compared to 103% 35 for Permian Basin (by…
  14. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 14
    The Diversity of Our Customer Slate in the Permian Supports Continued Growth Across Cycles Permian Crude System Our producers and by Producer Type shippers include November 2019 majors, independent % Average Daily Volume refiners…
  15. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 15
    We Plan to Continue to Expand and Connect Our Permian Crude System, in Step With Our Customers May 2017 Current Projected Dedicated Acres 500,000 2021 AMI 5,000,000 System Capacity 220,000 560,000 700,000 PAA SUNRISE II Receipt…
  16. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 16
    Gulf Coast Exports: Corpus Christi Continued & St. James Improvement: Our 2019 Plan
  17. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 17
    U.S. Crude Exports are Expected to Ramp Dramatically as Permian Production Exceeds U.S. Refiners Demands U.S. Export Growth 2.2MMbpd New capacity from Permian 2019 - 2024 long-haul projects in-service late 2019 and early 2020…
  18. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 18
    By Mid-2020, the Port of Corpus Christi is Expected to Become the Largest U.S. Crude Export Hub Regional refiners consumption has MMBPD U.S. Gulf Coast Oil Exports by Hub topped out, which means that a 7 significant proportion of…
  19. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 19
    We Have Expanded on Our Existing Assets in South Texas to Export Permian Barrels for Trafigura From Our Corpus Christi Facility We have completed our project for Trafigura to connect our existing South Texas Crude System with PAAs…
  20. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 20
    NuStars Corpus Christi North Beach Terminal is Now Exporting Permian Long-haul Barrels 100 Series 1.0MMbbl 400 Series 200 Series 1.7MMbbl 0.6MMbbl +0.4MMbbl Remaining Footprint +0.6MMbbl Under Construction Dock 15 Dock 16 Dock 2…
  21. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 21
    Our Connection Facility Establishes Our Footprint in Taft, Texas, the Emerging South Texas Crude Oil Hub The Permian long-haul 2.1MMbpd Taft pipeline projects were from the developed to maximize 15 miles to Permian shippers…
  22. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 22
    St. James, Formerly the Heart of U.S. Crude Import Infrastructure, has Evolved as North American Shale Production is Reversing Crude Flows to Favor Regional Supply and Export Pre-shale play revolution, St. James, LA became the heart…
  23. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 23
    Our St. James Terminal is a World-class Facility That We Continue to Connect and Equip for the Next Opportunities as the Hub Evolves St. James is evolving into a hub for regional crude distribution and storage and for U.S. exports…
  24. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 24
    Our St. James Facility is Benefiting From Price Dislocations in the Near-Term and Positioned to Participate in Export Growth in the Future A major dislocation between WCS production and the Gulf Coast from a lack of long-haul…
  25. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 25
    Northern Mexico Refined Products Supply
  26. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 26
    Mexicos Refined Product Demand is Expected to Continue to Exceed Its Infrastructures Capacity Mexico refineries currently operate around 35% of nameplate capacity due to weak returns and historical under- investment In 2019,…
  27. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 27
    We Have Completed Two Projects in 2019, and Will Bring Another Into Service in Early 2020, to Help Remedy This Supply Imbalance In 3Q 2019, we completed service on two projects we developed to address the supply imbalance in…
  28. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 28
    West Coast Bio-Fuels
  29. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 29
    Aggressive Carbon Emissions Reduction Goals in the West Coast Region Continue to Generate Growing Demand and Market Dislocations That Require Midstream Solutions Regulatory priorities on the West Coast are dramatically International…
  30. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 30
    NuStar is Partnering With Key Customers to Develop Necessary Bio-Fuels Storage at Several of Our West Coast Facilities We have developed and completed a number NS West Coast Terminals' Bio-fuel Growth of bio-fuels projects with our…
  31. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 31
    HSE Excellence is NuStars 1 Priority 32
  32. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 32
    Safe, Responsible and Efficient Operations are NuStars 1 Priority Our safety statistics reflect our commitment to safe, responsible operations In 2018, as in years past, our safety statistics were substantially better than our…
  33. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 33
    And, in 2020, We Will Continue to Take Care of Our Employees and Our Communities Across North America NuStar has been recognized for its strong corporate culture with numerous awards NuStar employees contributed 90,000 volunteer…
  34. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 34
    APPENDIX 35
  35. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 35
    Debt Maturity Schedule We have applied 500MM proceeds from recent dispositions to our revolver balance, which has allowed us to reduce leverage and redeploy capital to invest in low-multiple projects Receivables Financing 1,000…
  36. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 36
    Capital Structure as of September 30, 2019 ( in Millions) 1.2B Credit Facility 445 Series D Preferred Units 577 NuStar Logistics Notes (4.80%) 450 Series A, B and C Preferred Units 756 NuStar Logistics Notes (4.75%) 250 Common…
  37. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 37
    Reconciliation of Non-GAAP Financial Information 38
  38. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 38
    Reconciliation of Non-GAAP Financial Information (continued) 39
  39. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 39
    Reconciliation of Non-GAAP Financial Information (continued) 40
  40. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 40
    Reconciliation of Non-GAAP Financial Information (continued) 41
  41. Wells Fargo Securities Midstream and Utilities Symposium – Nustar Energy L.P. – slide 41
    Reconciliation of Non-GAAP Financial Information (continued) 42

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