NuStar Energy L.P. (NS) Tops Q3 EPS by 9c, Offers Guidance

NuStar Energy L.P. (NYSE: NS) reported Q3 EPS of $0.68, $0.09 better than the analyst estimate of $0.59. Revenue for the quarter came in at $493.6 million versus the consensus estimate of $577.5 million.

Earnings Guidance

Barron continued, “We haven’t changed our overall view of 2015 from what we conveyed to you in the past, but we have adjusted our expectations for each segment. We now expect our pipeline segment EBITDA to be $25 to $35 million higher than 2014, which is less than prior guidance, due to lower expected throughputs on our crude oil pipeline system as a result of recent Eagle Ford shale production declines. Our 2015 storage segment EBITDA, on the other hand, should be $40 to $50 million over 2014, higher than we previously anticipated, due to better than expected throughput activity and renewals, as well as insurance proceeds related to our Linden terminal that we expect to receive in the fourth quarter.” Barron then said, “Our fuels marketing segment EBITDA is now projected to be in the range of $10 to $20 million, less than previous guidance, due to weaker than expected margins across the segment.

“We expect our 2015 strategic capital spending, which includes internal growth and acquisition spending, to be $435 to $445 million. Our anticipated 2015 reliability capital spending has been reduced slightly to reflect estimated savings and is now expected to be $30 to $40 million.”

Looking ahead to 2016, Barron commented, “We expect increased throughputs on our refined product pipelines to be largely offset by lower projected Eagle Ford crude oil system volumes. As a result, our pipeline segment’s 2016 EBITDA should be comparable to slightly higher than 2015. We expect 2016 storage segment EBITDA to decrease $15 to $35 million compared to 2015, primarily due to lower projected storage throughputs at our North Beach terminal that serves our South Texas Pipeline System and the absence of expected current year insurance proceeds in 2016. We project 2016 EBITDA in our fuels marketing segment to be $15 to $35 million.

“With regard to capital spending projections for 2016, we plan to spend $360 to $380 million on strategic capital spending and $35 to $45 million on reliability capital spending.”

Barron concluded by saying, “Based on our current projections, we expect to cover our distribution again for the full-year 2016.”

For earnings history and earnings-related data on NuStar Energy L.P. (NS) click here.

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