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NuStar Energy L.P.

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NuStar has successfully weathered crude's historic decline through its large and diverse asset portfolio that provides healthy distributable cash flows. The partnership's merger with its general partner has resulted in the elimination of IDRs and boosted the future growth prospects. NuStar's  acquisition of Dallas-based private pipeline company, Navigator Energy Services, marks its entry into the Permian Basin and is likely to boost its revenue. The recent agreement to sell its UK assets in a bid to improve its leverage metrics also bode well. However, NuStar's reduction of the 2018 EBITDA guidance has raised concerns. Weaker performance from its storage unit over the past few quarters is another cause of worry. Further, partnership’s high leverage remains a major headwind. As such, NuStar warrants a cautious stance as of now.

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