NuStar Energy L.P. Announces Bunker Fuel Marketing Agreement

  NuStar Energy L.P. Announces Bunker Fuel Marketing Agreement

  Supply Agreement Positions NuStar To Remain In A Competitive Position as a
  Bunker Marketer While Significantly Reducing Working Capital Requirements

Business Wire

SAN ANTONIO -- August 23, 2013

As part of its announced strategy to review and strengthen its bunker fuel
marketing operations, NuStar Energy L.P. (NYSE: NS) today announced it has
signed a fuel oil supply agreement with a major fuel oil trading company. This
agreement enables NuStar to create a “back-to-back” trading model in which
NuStar purchases bunker fuel supply from this company to fulfill the needs of
its customers in St. Eustatius and the Caribbean. This trading model will
allow NuStar to reduce working capital tied to inventory, reduce exposure to
price volatility and hedge ineffectiveness, and better manage operating
expenses. In fact, the agreement will help NuStar lower its working capital
expenses by $40 to $50 million, and save the company related attendant
interest and hedging costs.

“This agreement is a very positive step in our efforts to strengthen the
bunker marketing operations within our fuels marketing segment, which has been
impacted by weak demand and difficult market conditions,” said NuStar
President and CEO Curt Anastasio. “This agreement allows us to remain in a
competitive position as a bunker fuel marketer, while reducing our exposure to
price risks and dramatically reducing our working capital expenses related to
our bunker marketing operations. We also believe that it creates opportunities
to grow our fuel oil business in the Caribbean.”

About NuStar Energy L.P.

NuStar Energy L.P., a publicly traded master limited partnership based in San
Antonio, is one of the largest independent liquids terminal and pipeline
operators in the nation. The partnership currently has 8,621 miles of
pipeline; 87 terminal and storage facilities that store and distribute crude
oil, refined products and specialty liquids; and a 50% ownership in a joint
venture that owns a terminal and an asphalt refinery with a throughput
capacity of 74,000 barrels per day. The partnership’s combined system has
approximately 97 million barrels of storage capacity, and NuStar has
operations in the United States, Canada, Mexico, the Netherlands, including
St. Eustatius in the Caribbean, the United Kingdom and Turkey.

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
 
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