We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
NuStar Energy (NS) Beats on Q4 Earnings and Revenues
Read MoreHide Full Article
NuStar Energy reported fourth-quarter adjusted earnings per unit of 34 cents, which was above the Zacks Consensus Estimate of 27 cents and improved significantly from the year-ago figure of 14 cents. This was primarily on account of all-time high Permian volumes, which averaged 584000 daily during the quarter.
NuStar Energy reported revenues of $430 million that also beat the consensus mark of $350 million and edged up 3.1% year over year.
NuStar recorded an operating income of $129.4 million, up from $101.7 million in the last year’s corresponding quarter.
NuStar Energy L.P. Price, Consensus and EPS Surprise
Pipeline: Total quarterly throughput volumes were 2,021,977 barrels per day (Bbl/d), down 0.2% from the year-ago period. Throughput from Refined products and ammonia pipelines decreased to 611,011 Bbl/d from 624,209 Bbl/d.
However, a record-breaking quarter from its Permian Crude System led to a 12.8% rise in the segment’s revenues to $229.9 million and surpassed the consensus mark of $151 million. Moreover, the operating profit of $131.6 million increased 24.9% year over year due to higher sales and lower operating expenses.
Storage: Throughput volumes fell to 512,504 Bbl/d from 557,448 Bbl/d in the prior-year quarter but outperformed the Zacks Consensus Estimate of 449,231 Bbl/d.
Moreover, the segment reported an operating income of $22.2 million, down 17.8% from $27 million in the fourth quarter of 2021.
Fuels Marketing: Product sales decreased to $120.6 million from $121.9 million, recorded in the year-ago quarter. Notwithstanding a 6.9% downtick in the cost of goods, the segment recorded earnings of $ 11,842 million, a surge from $5,203 million in the year-ago period, primarily due to higher fuel margins.
Cash Flow, & Debt
Fourth-quarter 2022 distributable cash flow available to limited partners was $89 million (providing 2.01x distribution coverage), higher than $63 million (41.3X) in the year-ago period. In addition to a year-over-year increase, the coverage ratio, far in excess of 1, implies that the partnership is generating more than enough cash to cover its distribution.
As of Dec 31, the partnership’s long-term debt was $3.3 billion. NuStar continues to improve its debt-to-EBITDA ratio to 3.98 in the fourth quarter (compared with 3.99 a year ago).
Guidance
NuStar expects to spend between $130 and $150 million on capital projects this year ($60 million on the Permian system), while maintenance expenditure is pegged in the range of $25 million-$35 million.
Net income and adjusted EBITA guidance are expected in the range of $202-$240 million and $700-$760 million, respectively. Finally, the partnership wants to focus on the identified areas of cost control to lessen the effect of inflation and strengthen the free cash flow position.
Zacks Rank and Key Picks
Based in San Antonio, TX, NuStar Energy, L.P. is a master limited partnership ("MLP") that transports and stores crude oil and refined products in Canada, Mexico, the United States, the Netherlands Antilles, and the United Kingdom.
Currently, NuStar Energy carries a Zacks Rank #4 (Sell).
Patterson-UTI Energy: PTEN beat the Zacks Consensus Estimate for earnings in three of the last four quarters. The company has a trailing four-quarter earnings surprise of roughly 169.23%, on average.
Patterson-UTI is worth approximately $3.44 billion. Its shares have gained 47.2% in the past year.
Halliburton: Halliburtonis valued at around $4.74 billion. In the past year, HP stock has increased by 40.2%.
Houston, TX-based Halliburton Company is one of the largest oilfield service providers in the world with a trailing four-quarter earnings surprise of roughly 130.98 %, on average
Calumet Specialty Products Partners: Calumet Specialty Products Partners is worth approximately $1.36 billion. Its shares have gained 16.1% in the past year.
Calumet Specialty Products Partners, L.P. is a leading independent producer of high-quality, specialty hydrocarbon products in North America.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
NuStar Energy (NS) Beats on Q4 Earnings and Revenues
NuStar Energy reported fourth-quarter adjusted earnings per unit of 34 cents, which was above the Zacks Consensus Estimate of 27 cents and improved significantly from the year-ago figure of 14 cents. This was primarily on account of all-time high Permian volumes, which averaged 584000 daily during the quarter.
NuStar Energy reported revenues of $430 million that also beat the consensus mark of $350 million and edged up 3.1% year over year.
NuStar recorded an operating income of $129.4 million, up from $101.7 million in the last year’s corresponding quarter.
NuStar Energy L.P. Price, Consensus and EPS Surprise
NuStar Energy L.P. price-consensus-eps-surprise-chart | NuStar Energy L.P. Quote
Segmental Performance
Pipeline: Total quarterly throughput volumes were 2,021,977 barrels per day (Bbl/d), down 0.2% from the year-ago period. Throughput from Refined products and ammonia pipelines decreased to 611,011 Bbl/d from 624,209 Bbl/d.
However, a record-breaking quarter from its Permian Crude System led to a 12.8% rise in the segment’s revenues to $229.9 million and surpassed the consensus mark of $151 million. Moreover, the operating profit of $131.6 million increased 24.9% year over year due to higher sales and lower operating expenses.
Storage: Throughput volumes fell to 512,504 Bbl/d from 557,448 Bbl/d in the prior-year quarter but outperformed the Zacks Consensus Estimate of 449,231 Bbl/d.
Moreover, the segment reported an operating income of $22.2 million, down 17.8% from $27 million in the fourth quarter of 2021.
Fuels Marketing: Product sales decreased to $120.6 million from $121.9 million, recorded in the year-ago quarter. Notwithstanding a 6.9% downtick in the cost of goods, the segment recorded earnings of $ 11,842 million, a surge from $5,203 million in the year-ago period, primarily due to higher fuel margins.
Cash Flow, & Debt
Fourth-quarter 2022 distributable cash flow available to limited partners was $89 million (providing 2.01x distribution coverage), higher than $63 million (41.3X) in the year-ago period. In addition to a year-over-year increase, the coverage ratio, far in excess of 1, implies that the partnership is generating more than enough cash to cover its distribution.
As of Dec 31, the partnership’s long-term debt was $3.3 billion. NuStar continues to improve its debt-to-EBITDA ratio to 3.98 in the fourth quarter (compared with 3.99 a year ago).
Guidance
NuStar expects to spend between $130 and $150 million on capital projects this year ($60 million on the Permian system), while maintenance expenditure is pegged in the range of $25 million-$35 million.
Net income and adjusted EBITA guidance are expected in the range of $202-$240 million and $700-$760 million, respectively. Finally, the partnership wants to focus on the identified areas of cost control to lessen the effect of inflation and strengthen the free cash flow position.
Zacks Rank and Key Picks
Based in San Antonio, TX, NuStar Energy, L.P. is a master limited partnership ("MLP") that transports and stores crude oil and refined products in Canada, Mexico, the United States, the Netherlands Antilles, and the United Kingdom.
Currently, NuStar Energy carries a Zacks Rank #4 (Sell).
Meanwhile, investors interested in the energy sector might look at stocks like Patterson-UTI Energy (PTEN - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and Calumet Specialty Products Partners (CLMT - Free Report) ) and Halliburton (HAL - Free Report) both holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Patterson-UTI Energy: PTEN beat the Zacks Consensus Estimate for earnings in three of the last four quarters. The company has a trailing four-quarter earnings surprise of roughly 169.23%, on average.
Patterson-UTI is worth approximately $3.44 billion. Its shares have gained 47.2% in the past year.
Halliburton: Halliburtonis valued at around $4.74 billion. In the past year, HP stock has increased by 40.2%.
Houston, TX-based Halliburton Company is one of the largest oilfield service providers in the world with a trailing four-quarter earnings surprise of roughly 130.98 %, on average
Calumet Specialty Products Partners: Calumet Specialty Products Partners is worth approximately $1.36 billion. Its shares have gained 16.1% in the past year.
Calumet Specialty Products Partners, L.P. is a leading independent producer of high-quality, specialty hydrocarbon products in North America.