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NuStar Energy (NS) Q2 Earnings, Revenues Miss Estimates
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San Antonio-based publicly traded partnership NuStar Energy L.P. (NS - Free Report) reported second-quarter earnings per limited partner unit of 5 cents, way off the Zacks Consensus Estimate of 33 cents and the year-ago quarter profit of 52 cents.
The owner and operator of crude oil and refined products pipelines and storage facilities’ bottom line suffered due to a light quarter from the ‘Pipeline’ and ‘Fuels marketing’ businesses.
Quarterly revenues of $435.5 million missed the Zacks Consensus Estimate of $520 million and was also below the year-ago level of $437.8 million.
Nustar Energy L.P. Price, Consensus and EPS Surprise
NuStar – whose general partner is NuStar GP Holdings LLC – announced a quarterly distribution of $1.095 per unit ($4.38 per unit annualized) that remains unchanged from the year-earlier as well as previous-quarter distributions. The distribution is payable on Aug 11 to unitholders of record as on Aug 7, 2017.
As per NuStar’s earnings release, distributable cash flow (DCF) available to limited partners for the second quarter was $60.3 million (providing 0.59x distribution coverage), compared with $92.8 million (providing 1.09x distribution coverage).
Segmental Performance
Pipeline: Total quarterly throughput volumes in the segment were 1,089,711 barrels per day (Bbl/d), up 16% from the year-ago period. While throughput volumes in the crude oil pipelines jumped 40% from the year-ago quarter to 558,182 Bbl/d, refined product pipelines throughput edged down 1% to 531,529 Bbl/d. As a result, throughput revenues rose 4% year-over-year to $126.7 million.
However, the segment’s operating income – at $52.9 million – was down 17% from the year-ago figure of $63.6 million, primarily due to the effects of turnaround and operational issue at some of NuStar’s customer refineries.
Storage: Throughput volumes in the Storage segment plunged 54% year over year to 337,518 Bbl/d. Nevertheless, higher renewal storage rates, increased terminal station fees and acquisition contributions meant a 4% increase in the unit’s quarterly revenues – from $151.9 million in the second quarter of 2016 to $158.6 million.
Moreover, the segment's operating income came in at $56.0 million, which marks a 10% improvement from $51.1 million earned in the year-ago quarter.
Fuels Marketing: The unit reported operating income of $289,000, dropping significantly from the year-ago profit of $1.4 million. Results were hampered by a 9% dip in revenues from product sales.
Costs & Expenses
The Zacks Rank #3 (Hold) partnership – which counts Magellan Midstream partners L.P. among its competitors – incurred total costs of $362.1 million, up 4% year-over-year. In particular, operating expenses came in at $116.4 million - 3% higher from the corresponding period of last year.
Balance Sheet
As of Jun 30, 2017, the partnership had total debt of $3,521.9 million, which represents a debt-to-capitalization ratio of 58.5%.
Guidance
NuStar – a spinoff of refiner Valero Energy Corp. (VLO - Free Report) – estimates growth spending for the year in the $380-$420 million range, while reliability expenses are expected to be between $35 million and $55 million. Total EBITDA for 2017 is expected to be $600 million to $650 million, with $110-$120 million in general and other expenses.
Stock Performance
Units of NuStar have lost 10.3% during the second quarter versus the 9.6% decline of the industry.
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NuStar Energy (NS) Q2 Earnings, Revenues Miss Estimates
San Antonio-based publicly traded partnership NuStar Energy L.P. (NS - Free Report) reported second-quarter earnings per limited partner unit of 5 cents, way off the Zacks Consensus Estimate of 33 cents and the year-ago quarter profit of 52 cents.
The owner and operator of crude oil and refined products pipelines and storage facilities’ bottom line suffered due to a light quarter from the ‘Pipeline’ and ‘Fuels marketing’ businesses.
Quarterly revenues of $435.5 million missed the Zacks Consensus Estimate of $520 million and was also below the year-ago level of $437.8 million.
Nustar Energy L.P. Price, Consensus and EPS Surprise
Nustar Energy L.P. Price, Consensus and EPS Surprise | Nustar Energy L.P. Quote
Quarterly Distribution
NuStar – whose general partner is NuStar GP Holdings LLC – announced a quarterly distribution of $1.095 per unit ($4.38 per unit annualized) that remains unchanged from the year-earlier as well as previous-quarter distributions. The distribution is payable on Aug 11 to unitholders of record as on Aug 7, 2017.
As per NuStar’s earnings release, distributable cash flow (DCF) available to limited partners for the second quarter was $60.3 million (providing 0.59x distribution coverage), compared with $92.8 million (providing 1.09x distribution coverage).
Segmental Performance
Pipeline: Total quarterly throughput volumes in the segment were 1,089,711 barrels per day (Bbl/d), up 16% from the year-ago period. While throughput volumes in the crude oil pipelines jumped 40% from the year-ago quarter to 558,182 Bbl/d, refined product pipelines throughput edged down 1% to 531,529 Bbl/d. As a result, throughput revenues rose 4% year-over-year to $126.7 million.
However, the segment’s operating income – at $52.9 million – was down 17% from the year-ago figure of $63.6 million, primarily due to the effects of turnaround and operational issue at some of NuStar’s customer refineries.
Storage: Throughput volumes in the Storage segment plunged 54% year over year to 337,518 Bbl/d. Nevertheless, higher renewal storage rates, increased terminal station fees and acquisition contributions meant a 4% increase in the unit’s quarterly revenues – from $151.9 million in the second quarter of 2016 to $158.6 million.
Moreover, the segment's operating income came in at $56.0 million, which marks a 10% improvement from $51.1 million earned in the year-ago quarter.
Fuels Marketing: The unit reported operating income of $289,000, dropping significantly from the year-ago profit of $1.4 million. Results were hampered by a 9% dip in revenues from product sales.
Costs & Expenses
The Zacks Rank #3 (Hold) partnership – which counts Magellan Midstream partners L.P. among its competitors – incurred total costs of $362.1 million, up 4% year-over-year. In particular, operating expenses came in at $116.4 million - 3% higher from the corresponding period of last year.
Balance Sheet
As of Jun 30, 2017, the partnership had total debt of $3,521.9 million, which represents a debt-to-capitalization ratio of 58.5%.
Guidance
NuStar – a spinoff of refiner Valero Energy Corp. (VLO - Free Report) – estimates growth spending for the year in the $380-$420 million range, while reliability expenses are expected to be between $35 million and $55 million. Total EBITDA for 2017 is expected to be $600 million to $650 million, with $110-$120 million in general and other expenses.
Stock Performance
Units of NuStar have lost 10.3% during the second quarter versus the 9.6% decline of the industry.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>