NuStar Energy L.P. (NS) Misses Q1 EPS by 3c, Revenues Miss

NuStar Energy L.P. (NYSE: NS) reported Q1 EPS of $0.39, $0.03 worse than the analyst estimate of $0.42. Revenue for the quarter came in at $392.79 million versus the consensus estimate of $422.53 million.

Updated 2020 Outlook

NuStar Executive Vice President and Chief Financial Officer Tom Shoaf noted that NuStar's 2020 range for full-year guidance has been adjusted to account for the impact from the COVID-19 pandemic and volatile crude markets on its business.

“We now expect NuStar’s 2020 Adjusted EBITDA to be $665 to $735 million, a decrease of less than 6 percent at the midpoint under our previous 2020 guidance. We expect strong contango uplift in our storage segment as a result of new business and favorable renewals to be more than offset by a decrease in gasoline and crude demand in our pipeline segment as a result of current market conditions.

“With regard to 2020 capital spending estimates, we plan to spend $165 to $195 million on strategic and other capital, a 45 percent reduction from previous guidance. In addition, we continue to expect about $40 to $50 million of reliability capital spending in 2020.

“Based on these projections, we expect our common unit distribution coverage ratio for 2020 to be in the range of 1.6 to 1.8 times,” said Shoaf.

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

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