NuStar GP Holdings, LLC Reports Fourth Quarter and Full Year 2012 Earnings Results

  NuStar GP Holdings, LLC Reports Fourth Quarter and Full Year 2012 Earnings
  Results

              Declares Quarterly Distribution of $0.545 per unit

   2013 Results Should Benefit from NuStar Energy’s Recent Eagle Ford Asset
                                 Acquisition

Business Wire

SAN ANTONIO -- February 1, 2013

NuStar GP Holdings, LLC (NYSE: NSH) today announced that distributable cash
flow available to unitholders for the fourth quarter of 2012 was $23.3
million, or $0.55 per unit, compared to $21.5 million, or $0.51 per unit, for
the fourth quarter of 2011. For the year ended December 31, 2012,
distributable cash flow available to unitholders was $90.8 million, or $2.13
per unit, compared to $84.3 million, or $1.98 per unit in 2011.

Fourth quarter 2012 net income was $5.1 million, or $0.12 per unit, compared
to $19.0 million, or $0.45 per unit, for the fourth quarter of 2011. For the
year ended December 31, 2012, net income was $2.1 million, or $0.05 per unit,
compared to $69.6 million, or $1.64 per unit in 2011.

With respect to the quarterly distribution to unitholders for the fourth
quarter of 2012, NuStar GP Holdings, LLC announced that its board of directors
has declared a distribution of $0.545 per unit. The fourth quarter 2012
distribution will be paid on February 19, 2013, to holders of record as of
February 11, 2013.

“Due primarily to the cash flow benefits realized as a result of NuStar Energy
L.P. issuing equity during the third quarter of 2012, NuStar GP Holdings, LLC
was able to increase its 2012 total distributions by 6.6%. Total 2012 declared
distributions of $2.11 per unit were $0.13 per unit higher than the $1.98 per
unit distribution declared in 2011,” said Curt Anastasio, President and Chief
Executive Officer of NuStar Energy L.P. and NuStar GP Holdings, LLC.

In regard to NuStar GP Holdings, LLC future results Anastasio stated, “NuStar
Energy’s recent crude oil asset acquisition and upcoming natural gas liquids
asset acquisition from TexStar Midstream Services LP should provide NuStar GP
Holdings, LLC with increased net income and distributable cash flow over the
next couple of years which should lead to additional future distribution
growth.”

A conference call with management is scheduled for 3:00 p.m. ET (2:00 p.m. CT)
today, February 1, 2013, to discuss the financial and operational results for
the fourth quarter of 2012. Investors interested in listening to the
presentation may call 800/622-7620, passcode 84162009. International callers
may access the presentation by dialing 706/645-0327, passcode 84162009. The
company intends to have a playback available following the presentation, which
may be accessed by calling 800/585-8367, passcode 84162009. International
callers may access the playback by calling 404/537-3406, passcode 84162009. A
live broadcast of the conference call will also be available on the company’s
Web site at www.nustargpholdings.com.

NuStar GP Holdings, LLC is a publicly traded limited liability company that
owns the two percent general partner interest, a 13.0 percent limited partner
interest and the incentive distribution rights in NuStar Energy L.P., one of
the largest independent liquids terminal operators in the nation. NuStar has
operations in the United States, Canada, Mexico, the Netherlands, including
St. Eustatius in the Caribbean, the United Kingdom and Turkey. For more
information, visit NuStar GP Holdings, LLC’s Web site at
www.nustargpholdings.com.

This release serves as qualified notice to nominees under Treasury Regulation
Sections 1.1446-4(b)(4) and (d). Please note that 100% of NuStar’s
distributions to foreign investors are attributable to income that is
effectively connected with a United States trade or business. Accordingly, all
of NuStar’s distributions to foreign investors are subject to federal income
tax withholding at the highest effective tax rate for individuals and
corporations, as applicable. Nominees, and not NuStar, are treated as the
withholding agents responsible for withholding on the distributions received
by them on behalf of foreign investors.

Cautionary Statement Regarding Forward-Looking Statements

This press release includes forward-looking statements regarding future
events. All forward-looking statements are based on the company's beliefs as
well as assumptions made by and information currently available to the
company. These statements reflect the company's current views with respect to
future events and are subject to various risks, uncertainties and assumptions.
These risks, uncertainties and assumptions are discussed in NuStar Energy L.P.
and NuStar GP Holdings, LLC’s 2011 annual reports on Form 10-K and subsequent
filings with the Securities and Exchange Commission.

NuStar GP Holdings, LLC
Consolidated Financial Information
(Unaudited, Thousands of Dollars, Except Unit and Per Unit Data)
                                                                   
                 Three Months Ended                      Year Ended
                 December 31,                            December 31,
                 2012               2011                 2012               2011
Statement of
Income Data:
Equity in
earnings
(loss) of        $ 6,893            $ 12,526             $ (4,578     )     $ 65,783
NuStar Energy
L.P.
                                                                            
General and
administrative     (1,031     )       (1,063     )         (3,337     )       (3,298     )
expenses
Other
(expense)          (1,007     )       7,877                9,801              7,320
income, net
Interest          (182       )      (111       )        (624       )      (570       )
expense, net
                                                                            
Income before
income tax         4,673              19,229               1,262              69,235
benefit
(expense)
Income tax
benefit           452              (199       )        866              401        
(expense)
Net income       $ 5,125           $ 19,030            $ 2,128           $ 69,636     
                                                                            
Basic and
diluted net      $ 0.12            $ 0.45              $ 0.05            $ 1.64       
income per
unit
                                                                            
Equity in
Earnings
(Loss) of
NuStar Energy
L.P.:
General
partner          $ (428       )     $ 409                $ (5,356     )     $ 3,703
interest
General
partner           10,805           9,816              41,242           36,319     
incentive
distribution
General
partner's
interest in
(loss)
earnings and       10,377             10,225               35,886             40,022
incentive
distributions
of NuStar
Energy L.P.
Limited
partner
interest in
(loss)             (2,763     )       3,022                (37,580    )       28,645
earnings of
NuStar Energy
L.P.
Amortization
of step-up in
basis related
to NuStar         (721       )      (721       )        (2,884     )      (2,884     )
Energy L.P.'s
assets and
liabilities
Equity in
earnings
(loss) of        $ 6,893           $ 12,526            $ (4,578     )     $ 65,783     
NuStar Energy
L.P.
                                                                            
                                                                            
Distributable
Cash Flow
(Note 1):
Cash
distributions
from NuStar
Energy L.P.
associated
with:
General
partner          $ 1,961            $ 1,782              $ 7,486            $ 6,630
interest
General
partner            10,805             9,816                41,242             36,326
incentive
distribution
Limited
partner           11,344           11,292             45,152           44,842     
interest -
common units
Total cash
distributions
expected from      24,110             22,890               93,880             87,798
NuStar Energy
L.P.
Deduct
expenses of
NuStar GP
Holdings, LLC:
General and
administrative     (1,031     )       (1,063     )         (3,337     )       (3,298     )
expenses
Income tax
benefit            452                (199       )         866                401
(expense)
Interest          (182       )      (111       )        (624       )      (570       )
expense, net
Distributable    $ 23,349          $ 21,517            $ 90,785          $ 84,331     
cash flow
                                                                            
Weighted
average number
of common          42,581,848         42,550,358           42,576,858         42,546,096
units
outstanding
                                                                            
Distributable
cash flow per    $ 0.548           $ 0.506             $ 2.131           $ 1.982      
unit
                                                                            
Cash
distributions
to be paid to
the
unitholders of
NuStar GP
Holdings, LLC:
Distribution     $ 0.545           $ 0.510             $ 2.110           $ 1.980      
per unit
                                                                            
Total            $ 23,223          $ 21,708            $ 89,860          $ 84,252     
distribution
                                                                                         


NuStar GP Holdings, LLC
Consolidated Financial Information - Continued
(Unaudited, Thousands of Dollars)
    
Notes:
       
       NuStar GP Holdings, LLC utilizes distributable cash flow as a financial
       measure, which is not defined in United States generally accepted
       accounting principles. Management uses this financial measure because
       it is a widely accepted financial indicator used by investors to
       compare general partner performance. In addition, management believes
  1.   that this measure provides investors an enhanced perspective of the
       ability to make a minimum quarterly distribution. Distributable cash
       flow is not intended to represent cash flows for the period, nor is it
       presented as an alternative to net income. It should not be considered
       in isolation or as a substitute for a measure of performance prepared
       in accordance with United States generally accepted accounting
       principles.
       
       The following is a reconciliation of net income to distributable cash
       flow and net cash (used in) provided by operating activities:
       

                  Three Months Ended             Year Ended
                      December 31,                      December 31,
                      2012          2011              2012          2011
      Net income      $ 5,125         $ 19,030          $ 2,128         $ 69,636
      Less equity
      in (earnings)
      loss of           (6,893  )       (12,526 )         4,578           (65,783 )
      NuStar Energy
      L.P.
      Plus cash
      distributions
      expected from     24,110          22,890            93,880          87,798
      NuStar Energy
      L.P.
      Other
      (income)         1,007         (7,877  )        (9,801  )      (7,320  )
      expense, net
      Distributable     23,349          21,517            90,785          84,331
      cash flow
      Less cash
      distributions
      expected from     (24,110 )       (22,890 )         (93,880 )       (87,798 )
      NuStar Energy
      L.P.
      Distributions
      of equity in
      earnings of       -               12,526            -               65,783
      NuStar Energy
      L.P.
      Net effect of
      changes in       (1,966  )      215             5,640         2,014   
      operating
      accounts
      Net cash
      (used in)
      provided by     $ (2,727  )     $ 11,368         $ 2,545        $ 64,330  
      operating
      activities

Contact:

NuStar Energy, L.P., San Antonio
Investors, Chris Russell, Vice President
Investor Relations: 210-918-3507
or
Media, Mary Rose Brown, Executive Vice President,
Corporate Communications: 210-918-2314
Web site: http://www.nustarenergy.com