NuStar GP Holdings, LLC Reports Increased EPU in the Second Quarter of 2014 Business Wire SAN ANTONIO -- July 25, 2014 NuStar GP Holdings, LLC (NYSE: NSH) today announced that net income for the second quarter of 2014 was $15.8 million, or $0.37 per unit, compared to $12.6 million, or $0.29 per unit, for the second quarter of 2013. Second quarter 2014 distributable cash flow available to unitholders was $22.8 million, or $0.54 per unit, compared to $23.2 million, or $0.54 per unit, for the second quarter of 2013. With respect to the quarterly distribution to unitholders for the second quarter of 2014, NuStar GP Holdings, LLC announced that its board of directors has declared a distribution of $0.545 per unit. The second quarter 2014 distribution will be paid on August 14, 2014, to holders of record as of August 6, 2014. “NuStar GP Holdings, LLC benefitted from NuStar Energy L.P.’s strong second quarter results and remains well positioned given NuStar Energy L.P.’s strategic re-direction,” said Brad Barron, 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, July 25, 2014, to discuss the financial results for the second quarter of 2014. Investors interested in listening to the presentation may call 800/622-7620, passcode 63499232. International callers may access the presentation by dialing 706/645-0327, passcode 63499232. The company intends to have a playback available following the presentation, which may be accessed by calling 800/585-8367, passcode 63499232. International callers may access the playback by calling 404/537-3406, passcode 63499232. Investors interested in listening to the live presentation or a replay via the internet may access the presentation directly by clicking here or by logging on to NuStar GP Holdings, LLC’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 12.9 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 2013 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 June 30, Six Months Ended June 30, 2014 2013 2014 2013 Statement of Income Data: Equity in earnings of $ 16,739 $ 13,417 $ 31,129 $ 25,561 NuStar Energy L.P. General and administrative (880 ) (618 ) (1,752 ) (1,418 ) expenses Other income, 196 18 213 99 net Interest (231 ) (170 ) (453 ) (343 ) expense, net Income before income tax 15,824 12,647 29,137 23,899 (expense) benefit Income tax (expense) (56 ) (88 ) 277 (265 ) benefit Net income $ 15,768 $ 12,559 $ 29,414 $ 23,634 Basic and diluted net $ 0.37 $ 0.29 $ 0.69 $ 0.55 income per unit Equity in Earnings of NuStar Energy L.P.: General partner $ 894 $ 446 $ 1,473 $ 722 interest General partner 10,805 10,805 21,610 21,610 incentive distribution General partner’s interest in earnings and 11,699 11,251 23,083 22,332 incentive distributions of NuStar Energy L.P. Limited partner interest in 5,761 2,887 9,488 4,671 earnings of NuStar Energy L.P. Amortization of step-up in basis related to NuStar (721 ) (721 ) (1,442 ) (1,442 ) Energy L.P.’s assets and liabilities Equity in earnings of $ 16,739 $ 13,417 $ 31,129 $ 25,561 NuStar Energy L.P. Distributable Cash Flow (Note 1): Cash distributions from NuStar Energy L.P. associated with: General partner $ 1,961 $ 1,961 $ 3,922 $ 3,922 interest General partner 10,805 10,805 21,610 21,610 incentive distribution Limited partner 11,223 11,272 22,434 22,552 interest – common units Total cash distributions expected from 23,989 24,038 47,966 48,084 NuStar Energy L.P. Deduct expenses of NuStar GP Holdings, LLC: General and administrative (880 ) (618 ) (1,752 ) (1,418 ) expenses Income tax (expense) (56 ) (88 ) 277 (265 ) benefit Interest (231 ) (170 ) (453 ) (343 ) expense, net DCF $ 22,822 $ 23,162 $ 46,038 $ 46,058 Weighted average number of common 42,658,178 42,618,376 42,657,235 42,612,057 units outstanding DCF per unit $ 0.54 $ 0.54 $ 1.08 $ 1.08 (Note 1) Cash distributions to be paid to the unitholders of NuStar GP Holdings, LLC: Distribution $ 0.545 $ 0.545 $ 1.090 $ 1.090 per unit Total $ 23,250 $ 23,236 $ 46,498 $ 46,458 distribution NuStar GP Holdings, LLC Consolidated Financial Information - Continued (Unaudited, Thousands of Dollars, Except Per Unit Data) Notes: (1) 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 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 to DCF and net cash provided by operating activities: Three Months Ended June 30, Six Months Ended June 30, 2014 2013 2014 2013 Net income $ 15,768 $ 12,559 $ 29,414 $ 23,634 Less equity in earnings of NuStar (16,739 ) (13,417 ) (31,129 ) (25,561 ) Energy L.P. Plus cash distributions 23,989 24,038 47,966 48,084 expected from NuStar Energy L.P. Other income, net (196 ) (18 ) (213 ) (99 ) DCF 22,822 23,162 46,038 46,058 Less cash distributions (23,989 ) (24,038 ) (47,966 ) (48,084 ) expected from NuStar Energy L.P. Distributions of equity in earnings 16,739 13,417 31,129 25,561 of NuStar Energy L.P. Net effect of changes in operating 1,223 (611 ) 1,747 60 accounts Net cash provided by $ 16,795 $ 11,930 $ 30,948 $ 23,595 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
NuStar GP Holdings, LLC Reports Increased EPU in the Second Quarter of 2014
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