November 7, 2016 [BusinessWire] - NuStar Energy L.P. announced that the partnership reported net income applicable to limited partners of $38.6 million, or $0.49 per unit, for the third quarter of 2016 and $123.4 million, or $1.58 per unit, for the nine months ended September 30, 2016.
Distributable cash flow (DCF) from continuing operations available to limited partners was $87.6 million for the third quarter of 2016, which allowed NuStar to cover its distribution to the limited partners by 1.02 times. For the nine months ended September 30, 2016, DCF from continuing operations available to limited partners was $277.5 million, which covered the distribution to the limited partners by 1.08 times.
Third quarter 2016 earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations were $142.3 million. For the nine months ended September 30, 2016, the partnership reported $434.5 million of EBITDA from continuing operations.
As previously announced on October 28, 2016, the third quarter 2016 distribution of $1.095 per unit will be paid on November 14, 2016 to holders of record as of November 8, 2016.
“We continued to benefit from strong refined product pipeline throughput volumes during the third quarter,” said Brad Barron, President and Chief Executive Officer of NuStar Energy L.P. and NuStar GP Holdings, LLC. “In addition, 1.8 million barrels of recently leased storage at our Piney Point, Maryland facility and higher revenues at some of our terminal locations contributed to solid results from our storage segment.”
Barron went on to say, “These strong results from our base business, in combination with lower than expected operating expenses across all of our businesses during the quarter, allowed us to cover our distribution for the tenth consecutive quarter and we are on track to cover our distribution for a third consecutive year.”
Barron closed by saying, “By the end of the fourth quarter, we plan to close on the 1.15 million barrel terminal acquisition from Martin Midstream Partners L.P. in the Port of Corpus Christi that we announced on October 21, 2016. We are very pleased to make this acquisition that will not only solidify our presence in Corpus Christi, but will also give us the ability to serve a new pipeline as part of our Eagle Ford operations and provide us greater connectivity to domestic and international crude oil and refined products markets.”
