SAN ANTONIO--(BUSINESS WIRE)--April 25, 2007--NuStar Energy L.P. (NYSE:NS) (formerly Valero L.P.) today announced net income applicable to limited partners of $26.7 million, or $0.57 per unit, for the first quarter of 2007 compared to $35.3 million, or $0.75 per unit, for the first quarter of 2006.
Distributable cash flow available to limited partners from continuing operations for the first quarter of 2007 was $47.4 million, or $1.01 per unit, compared to $53.4 million, or $1.14 per unit, for the first quarter of 2006. As of March 31, 2007, the partnership's debt-to-capitalization ratio was 42.8 percent compared to 41.9 percent as of December 31, 2006.
Results were lower in the first quarter of 2007 compared to the first quarter of 2006 primarily due to the shutdown of Valero Energy's McKee refinery in the Texas Panhandle from complications of a fire that started at their propane deasphalting unit in mid-February and the impact of planned turnarounds at several of the refineries served by NuStar Energy L.P.
With respect to the quarterly distribution to unitholders payable for the first quarter of 2007, NuStar Energy L.P. also announced that it has declared a distribution of $0.915 per unit, or $3.66 per unit on an annual basis, which will be paid on May 14, 2007, to holders of record as of May 7, 2007. This distribution represents an increase of $0.03 per unit, or around 3 percent, over the distribution for the first quarter of 2006. Distributable cash flow available to limited partners covers the distribution to the limited partners by 1.11 times for the first quarter of 2007.
"This quarter has truly been a defining moment in the company's history with our new name, the move to our new San Antonio headquarters and our new independence resulting from Valero Energy's sale of our general partner, NuStar GP Holdings, LLC, which should position us for even greater growth and success in the future," said Curt Anastasio, NuStar Energy L.P.'s Chief Executive Officer.
"With regard to the status of our construction projects, we have recently completed phase one of the St. Eustatius tank expansion for one of our customers. This project increased the storage capacity at our terminal by 500,000 barrels at an expected cost of $15.2 million. The other two expansion phases at St. Eustatius continue and are expected to be finished later this year and early next year. We have also recently completed a project at our terminal in Savannah, Georgia having returned to service around 400,000 barrels at an expected cost of $4.3 million. We continue to make progress on other projects underway at our terminals in Amsterdam, St. James, Texas City, Linden (New York Harbor), Vancouver, Portland and Stockton and expect these will be completed on time and on budget.
"Looking ahead to the full year of 2007, we expect earnings before interest, taxes, depreciation and amortization ("EBITDA") will be higher in 2007 compared to 2006 driven primarily by the Burgos pipeline project completed in July 2006, the acquisition of our St. James crude oil terminal in December 2006 and the ramp-up of terminal expansion projects," said Anastasio.
A conference call with management is scheduled for 2:30 p.m. ET (1:30 p.m. CT) today to discuss the financial and operational results for the first quarter of 2007. Investors interested in listening to the presentation may call 800-622-7620, passcode 5342060. International callers may access the presentation by dialing 706-645-0327, passcode 5342060. The company intends to have a playback available following the presentation, which may be accessed by calling 800-642-1687, passcode 5342060. A live broadcast of the conference call will also be available on the partnership's Web site at www.nustarenergy.com.
NuStar Energy L.P. is a publicly traded, limited partnership based in San Antonio, with 9,113 miles of pipeline, 87 terminal facilities and four crude oil storage tank facilities. One of the largest independent terminal and petroleum liquids pipeline operators in the nation, the partnership has operations in the United States, the Netherlands Antilles, Canada, Mexico, the Netherlands and the United Kingdom. The partnership's combined system has approximately 80 million barrels of storage capacity, and includes crude oil and refined product pipelines, refined product terminals, a petroleum and specialty liquids storage and terminaling business, as well as crude oil storage facilities. For more information, visit NuStar Energy L.P.'s Web site at www.nustarenergy.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995 regarding future events and the future financial performance of NuStar Energy L.P. All forward-looking statements are based on the partnership's beliefs as well as assumptions made by and information currently available to the partnership. These statements reflect the partnership'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.'s 2006 annual report on Form 10-K and subsequent filings with the Securities and Exchange Commission.