NuStar GP Holdings, LLC Reports Third Quarter 2013 Results

  NuStar GP Holdings, LLC Reports Third Quarter 2013 Results

Business Wire

SAN ANTONIO -- November 12, 2013

NuStar GP Holdings, LLC (NYSE: NSH) today announced that distributable cash
flow available to unitholders for the third quarter of 2013 was $22.6 million,
or $0.53 per unit, compared to $23.4 million, or $0.55 per unit, for the third
quarter of 2012.

The company reported third quarter net income of $12.0 million, or $0.29 per
unit, compared to net income of $19.2 million, or $0.45 per unit, in the third
quarter of 2012. The third quarter 2012 results included $10.7 million, or
$0.25 per unit, of a non-cash gain resulting from NuStar Energy L.P.’s
issuance of limited partner units in September 2012. Excluding this gain,
third quarter 2012 adjusted net income would have been $8.5 million, or $0.20
per unit.

As previously announced on October 31, 2013, the third quarter 2013
distribution of $0.545 per unit will be paid on November 19, 2013 to holders
of record as of November 11, 2013.

“NuStar GP Holdings, LLC’s results should improve in the fourth quarter of
2013 and into 2014 as NuStar Energy L.P. continues to complete internal growth
projects, primarily in the Eagle Ford Shale region,” said Curt Anastasio,
President and Chief Executive Officer of NuStar Energy L.P. and NuStar GP
Holdings, LLC.

A conference call with management is scheduled for 10:00 a.m. ET (9:00 a.m.
CT) today, November 12, 2013, to discuss the financial results for the third
quarter of 2013. Investors interested in listening to the presentation may
call 800/622-7620, passcode 77504322. International callers may access the
presentation by dialing 706/645-0327, passcode 77504322. The company intends
to have a playback available following the presentation, which may be accessed
by calling 800/585-8367, passcode 77504322. International callers may access
the playback by calling 404/537-3406, passcode 77504322. 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

Condensed Financial Information

(Unaudited, Thousands of Dollars, Except Unit and Per Unit Data)
                                                   
                   Three Months Ended              Nine Months Ended September
                   September 30,                   30,
                   2013          2012             2013          2012
Statement of
Income Data:
Equity in
earnings
(loss) of          $  13,462      $  9,185         $  39,023      $  (11,471 )
NuStar Energy
L.P.
                                                                  
General and
administrative     (941       )   (654       )     (2,359     )   (2,306     )
expenses
Other
(expense)          (9         )   10,702           90             10,808
income, net
Interest           (191       )   (158       )     (534       )   (442       )
expense, net
                                                                  
Income (loss)
before income      12,321         19,075           36,220         (3,411     )
tax (expense)
benefit
Income tax
(expense)          (286       )   90              (551       )   414        
benefit
Net income         $  12,035     $  19,165       $  35,669     $  (2,997  )
(loss)
                                                                  
Basic and
diluted net        $  0.29       $  0.45         $  0.84       $  (0.07   )
income (loss)
per unit
                                                                  
Equity in
Earnings
(Loss) of
NuStar Energy
L.P.:
General
partner            $  452         $  (128    )     $  1,174       $  (4,928  )
interest
General
partner            10,805        10,805          32,415        30,437     
incentive
distribution
General
partner’s
interest in
earnings
(loss) and         11,257         10,677           33,589         25,509
incentive
distributions
of NuStar
Energy L.P.
Limited
partner
interest in
earnings           2,926          (771       )     7,597          (34,817    )
(loss) of
NuStar Energy
L.P.
Amortization
of step-up in
basis related
to NuStar          (721       )   (721       )     (2,163     )   (2,163     )
Energy L.P.’s
assets and
liabilities
Equity in
earnings
(loss) of          $  13,462     $  9,185        $  39,023     $  (11,471 )
NuStar Energy
L.P.
                                                                  
Distributable
Cash Flow
(Note 1):
Cash
distributions
from NuStar
Energy L.P.
associated
with:
General
partner            $  1,961       $  1,961         $  5,883       $  5,525
interest
General
partner            10,805         10,805           32,415         30,437
incentive
distribution
Limited
partner            11,268        11,374          33,820        33,808     
interest –
common units
Total cash
distributions
expected from      24,034         24,140           72,118         69,770
NuStar Energy
L.P.
Deduct
expenses of
NuStar GP
Holdings, LLC:
General and
administrative     (941       )   (654       )     (2,359     )   (2,306     )
expenses
Income tax
(expense)          (286       )   90               (551       )   414
benefit
Interest           (191       )   (158       )     (534       )   (442       )
expense, net
DCF                $  22,616     $  23,418       $  68,674     $  67,436  
                                                                  
Weighted
average number
of common          42,624,518     42,575,563       42,616,256     42,575,183
units
outstanding
                                                                  
DCF per unit       $  0.53        $  0.55          1.61           1.58
(Note 1)
                                                                  


Cash
distributions
to be paid to
the
unitholders of
NuStar GP
Holdings, LLC:
Distribution       $  0.545       $  0.545         $  1.635       $  1.565
per unit
                                                                  
Total              $  23,231      $  23,204        $  69,689      $  66,637
distribution

     
        NuStar GP Holdings, LLC
        Consolidated Financial Information - Continued
        (Unaudited, Thousands of Dollars, Except Per Unit Data)
        
  Notes:
        NuStar GP Holdings, LLC utilizes financial measures, distributable
        cash flow (DCF) and DCF per unit, which are not defined in
        U.S.generally accepted accounting principles.Management uses these
        financial measures because they are widely accepted financial
        indicators used by investors to compare company performance.In
        addition, management believes that these measures provide investors an
  (1)   enhanced perspective of the ability to make a minimum quarterly
        distribution.DCF and DCF per unit are not intended to represent cash
        flows from operations for the period, nor are they presented as an
        alternative to net income.They should not be considered in isolation
        or as a substitute for a measure of performance in accordance with
        U.S. generally accepted accounting principles

        
        
        The following is a reconciliation of net income (loss) to DCF and net
        cash provided by operating activities:

                                                 
                   Three Months Ended September       Nine Months Ended
                   30,                                September 30,
                   2013            2012              2013         2012
Net income         $  12,035        $  19,165         $  35,669     $ (2,997 )
(loss)
Less equity in
(earnings)         (13,462    )     (9,185     )      (39,023   )   11,471
loss of NuStar
Energy L.P.
Plus cash
distributions
expected from      24,034           24,140            72,118        69,770
NuStar Energy
L.P.
Other (income)     9               (10,702    )      (90       )   (10,808  )
expense, net
DCF                22,616           23,418            68,674        67,436
Less cash
distributions
expected from      (24,034    )     (24,140    )      (72,118   )   (69,770  )
NuStar Energy
L.P.
Distributions
of equity in
earnings of        13,462           —                 39,023        —
NuStar Energy
L.P.
Net effect of
changes in         (7,842     )     10,198           (7,782    )   7,606    
operating
accounts
Net cash
provided by        $  4,202        $  9,476         $  27,797    $ 5,272  
operating
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
 
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