NuStar Energy L.P. (NS) Tops Q4 EPS by 5c

NuStar Energy L.P. (NYSE: NS) reported Q4 EPS of $0.61, $0.05 better than the analyst estimate of $0.56. Revenue for the quarter came in at $464.9 million versus the consensus estimate of $525.86 million.

Q4 earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations were $150.6 million, compared to fourth quarter 2014 EBITDA of $136.0 million.

2016 Earnings Guidance

“Our overall expectations for 2016 are essentially unchanged from what we conveyed to you previously, but we have adjusted our EBITDA expectations for our storage and pipeline segments. We now expect our storage segment 2016 EBITDA to be $310 to $330 million, up approximately $15 million from previous guidance, due to an increase in our expected storage rates and throughput activity at some of our terminals.

“Pipeline segment 2016 EBITDA is now expected to be $335 to $355 million, lower than our previous guidance due to reduced Eagle Ford volume projections for 2016. Fuels marketing segment EBITDA is still projected to be in the range of $15 to $35 million,” said Barron.

Barron went on to say, “Our 2016 capital spending projections remain unchanged. We have budgeted to spend $360 to $380 million for strategic capital and $35 to $45 million on reliability capital spending. However, we are in the process of prioritizing all capital spending for 2016 to avoid accessing the public debt and equity markets. We plan to finance 2016 spending with excess cash on our balance sheet, borrowings from our $1.5 billion credit facility and possibly by accessing the convertible preferred market.”

Barron concluded by saying, “Based on these projections we expect to once again cover our current distribution in 2016.”

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

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