NuStar expects more contributions from South Texas Crude Oil Pipeline after completing an expansion next year, and its Mont Belvieu-Corpus Christi NGL pipeline will also be ready for first flow in 2015.

“Strong performance in all three of our operating segments led to our solid third quarter earnings and distribution coverage of 1.03 times,” said Brad Barron, CEO of NuStar Energy LP and NuStar GP Holdings LLC.

“During the third quarter, we moved approximately 255,000 barrels per day of crude oil through our South Texas Crude Oil Pipeline System, which contributed to an overall 23% increase in quarterly crude oil pipeline throughput volumes compared to the third quarter of 2013. The storage segment continued to benefit from the increased Eagle Ford throughput volumes through our dock at the Corpus Christi North Beach Terminal,” he said.

Phase 2 of the South Texas Crude Oil Pipeline expansion remains on schedule to come online during the first quarter of 2015 and will allow for increased throughputs of up to 65,000 b/d.

NuStar’s 12-inch pipeline between Mont Belvieu and Corpus Christi, Texas, is expected to be in full NGL service early in the third quarter of 2015, at which time it is expected to generate an incremental $23 million in annual EBITDA, based on committed volumes.

“Our pipeline segment’s EBITDA should increase by an additional $25 to $45 million next year, mainly due to the increased throughputs associated with the expected completion of Phase 2 of the South Texas Crude Oil Pipeline expansion and the NuStar 12-inch pipeline between Mont Belvieu and Corpus Christi. We expect our storage segment and fuels marketing segment results to be comparable to 2014,” Barron said.

NuStar’s third-quarter net income applicable to limited partners was $50.1 million, or $0.64 per unit, compared to $21.9 million, or $0.28 per unit, earned in the third quarter of 2013. For the nine months ended Sept. 30, 2014, net income applicable to limited partners was $121.8 million, or $1.56 per unit, compared to net income applicable to limited partners of $56.8 million, or $0.73 per unit, for the nine months ended Sept. 30, 2013.

“Fourth quarter EBITDA results in our pipeline segment are expected to be higher than last year’s fourth quarter, while fourth quarter EBITDA results in our storage segment should be comparable to last year’s fourth quarter adjusted EBITDA results. EBITDA results in our fuels marketing segment should be comparable to the fourth quarter of 2013,” said Barron.

“For the full-year 2014, we still expect our pipeline segment EBITDA to be $40 to $60 million higher than 2013 and our storage segment adjusted EBITDA to be comparable to 2013. We continue to expect our fuels marketing segment to generate EBITDA in the range of $20 to $30 million,” he said.

Meanwhile, NuStar and PMI, an affiliate of Pemex, continue to work toward finalizing agreements for a proposed joint venture in which the two companies will develop new pipeline infrastructure to transport liquefied petroleum gases (LPGs) and refined products from the U.S. into northern Mexico to meet the region’s growing demand for these products. We expect to finalize these agreements in early 2015 and expect the assets in the joint venture to be completed and placed into service in the second half of 2016.

NuStar Energy LP, a publicly traded master limited partnership based in San Antonio, currently has 8,643 miles of pipeline and 82 terminal and storage facilities that store and distribute crude oil, refined products and specialty liquids. The partnership’s combined system has approximately 91 million barrels of storage capacity, and NuStar has operations in the United States, Canada, Mexico, the Netherlands, including St. Eustatius in the Caribbean, and the United Kingdom.