NuStar GP Holdings, LLC Reports Increase in First Quarter 2013 Distributable Cash Flows

  NuStar GP Holdings, LLC Reports Increase in First Quarter 2013 Distributable
  Cash Flows

Business Wire

SAN ANTONIO -- April 24, 2013

NuStar GP Holdings, LLC (NYSE: NSH) today announced that distributable cash
flow available to unitholders for the first quarter of 2013 was $22.9 million,
or $0.54 per unit, compared to $21.9 million, or $0.52 per unit, for the first
quarter of 2012. First quarter 2013 net income was $11.1 million, or $0.26 per
unit, compared to $11.0 million, or $0.26 per unit, for the first quarter of
2012.

With respect to the quarterly distribution to unitholders for the first
quarter of 2013, NuStar GP Holdings, LLC announced that its board of directors
has declared a distribution of $0.545 per unit. The first quarter 2013
distribution will be paid on May 15, 2013, to holders of record as of May 6,
2013.

“NuStar GP Holdings, LLC should benefit from NuStar Energy L.P.’s projections
of increased distributable cash flow and EBITDA in 2013,” said Curt Anastasio,
President and Chief Executive Officer of NuStar Energy L.P. and NuStar GP
Holdings, LLC. “NuStar Energy L.P.’s large internal growth program for 2013,
primarily in the Eagle Ford Shale region, should have a positive impact on the
future growth of NuStar GP Holdings, LLC’s distributable cash flow and
distributions.”

A conference call with management is scheduled for 10:00 a.m. ET (9:00 a.m.
CT) today, April 24, 2013, to discuss the financial results for the first
quarter of 2013. Investors interested in listening to the presentation may
call 800/622-7620, passcode 31554334. International callers may access the
presentation by dialing 706/645-0327, passcode 31554334. The company intends
to have a playback available following the presentation, which may be accessed
by calling 800/585-8367, passcode 31554334. International callers may access
the playback by calling 404/537-3406, passcode 31554334. 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 and pipeline 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 2012 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
                                             March 31,
                                             2013               2012
Statement of Income Data:
Equity in earnings of NuStar Energy L.P.     $ 12,144           $ 11,772
                                                                
General and administrative expenses            (800       )       (857       )
Other income, net                              81                 136
Interest expense, net                         (173       )      (133       )
                                                                
Income before income tax (expense)             11,252             10,918
benefit
Income tax (expense) benefit                  (177       )      128        
Net income                                   $ 11,075          $ 11,046     
                                                                
Basic and diluted net income per unit        $ 0.26            $ 0.26       
                                                                
Equity in Earnings of NuStar Energy
L.P.:
General partner interest                     $ 276              $ 331
General partner incentive distribution        10,805           9,816      
General partner's interest in earnings
and incentive
distributions of NuStar Energy L.P.            11,081             10,147
Limited partner interest in earnings of        1,784              2,346
NuStar Energy L.P.
Amortization of step-up in basis related
to NuStar
Energy L.P.'s assets and liabilities          (721       )      (721       )
Equity in earnings of NuStar Energy L.P.     $ 12,144          $ 11,772     
                                                                
                                                                
Distributable Cash Flow (Note 1):
Cash distributions expected from NuStar
Energy L.P. associated with:
General partner interest                     $ 1,961            $ 1,782
General partner incentive distribution         10,805             9,816
Limited partner interest - common units       11,280           11,211     
Total cash distributions expected from         24,046             22,809
NuStar Energy L.P.
Deduct expenses of NuStar GP Holdings,
LLC:
General and administrative expenses            (800       )       (857       )
Income tax (expense) benefit                   (177       )       128
Interest expense, net                         (173       )      (133       )
Distributable cash flow                      $ 22,896          $ 21,947     
                                                                
Weighted average number of common units        42,605,668         42,574,419
outstanding
                                                                
Distributable cash flow per unit             $ 0.54            $ 0.52       
                                                                
Cash distributions to be paid to the
unitholders of
NuStar GP Holdings, LLC:
Distribution per unit                        $ 0.545           $ 0.510      
                                                                
Total distribution                           $ 23,222          $ 21,720     
                                                                             


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 provided by operating activities:
       

                                              Three Months Ended
                                                   March 31,
                                                   2013          2012
      Net Income                                   $ 11,075        $ 11,046
      Less equity in earnings of NuStar Energy       (12,144 )       (11,772 )
      L.P.
      Plus cash distributions expected from          24,046          22,809
      NuStar Energy L.P.
      Other income, net                             (81     )      (136    )
      Distributable cash flow                        22,896          21,947
      Less cash distributions expected from          (24,046 )       (22,809 )
      NuStar Energy L.P.
      Plus distributions of equity in earnings       12,144          11,772
      of NuStar Energy L.P.
      Net effect of changes in operating            671           (2,714  )
      accounts
      Net cash provided by operating               $ 11,665       $ 8,196   
      activities

Contact:

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