Michael Fitzsimmons • 56 Comments
Michael Fitzsimmons • 11 Comments
Fri, Aug. 12, 2:47 PM
- NuStar Energy (NS +1.3%) and NuStar GP Holdings (NSH +2.8%) are both upgraded to Buy from Neutral at Citigroup, driven mostly by increased Mexican refined product demand and future crude exports.
- Citi's bullish thesis on NuStar also is centered on RINs and ethanol blending capability, less burdensome IDRs and improving cost of capital, as well as downside risk protection due to contracts and strategic assets.
- The firm expects NuStar to raise equity, delever and resume its distribution growth over the next few years on favorable fund flows, improving capital markets and a 23% IDR cap; it projects ~3% distribution growth at NS and ~5% at NSH through 2020.
Wed, Apr. 27, 1:56 PM
- NuStar Energy (NS +5.1%) is sharply higher after reporting better than expected Q1 earnings and a distribution coverage ratio exceeding 1x for the eighth straight quarter.
- NS maintains its quarterly distribution of $1.095/unit, with Q1 distribution coverage of 1.14x, and says it expects to cover its distribution in 2016 for the third straight year.
- NS says its FY 2016 guidance remains unchanged, expecting EBITDA of $335M-$355M in its pipeline segment, $310M-$330M in its storage segment, and $15M-$35M in its fuels marketing segment.
- NS also says 2016 strategic capital spending has cut roughly in half to $180M-$200M.
- NSH +4.8%.
- Now read High dividend stock yields 9%, reports this week, insiders buying
Nov. 4, 2015, 12:45 PM
- NuStar Energy (NS -4.4%) is downgraded to Hold from Buy at Stifel, which cites weaker than expected 2016 EBITDA guidance as Eagle Ford production declines, which impacts the company's pipeline and storage segments.
- Stifel notes NuStar's sixth consecutive quarter with distribution coverage above 1x, supported by $102M in distributable cash flow vs. its $96.5M estimate, and the firm continues to expect the partnership to cover its flat $1.095/quarter distribution in 2016, although at a less robust coverage ratio.
- Earlier: NuStar beats by $0.09, misses on revenue (Nov. 3)
Oct. 15, 2014, 10:29 AM
- NuStar Energy (NS +4.6%) and Mexico's state-run Pemex sign a letter of intent to form a joint venture to develop pipeline infrastructure to transport liquefied petroleum gases and refined products from the U.S. into Mexico.
- Under the proposed JV, the companies will jointly fund construction of new pipeline and storage assets, and NS would manage construction and operation of the assets.
- LPGs and refined products will be delivered from Mont Belvieu and Corpus Christi in Texas to Nuevo Laredo and Burgos-Reynosa in Mexico.
Mar. 14, 2014, 10:42 AM
- NuStar Energy (NS +2.9%) is upgraded to Buy from Neutral with a $62 price target, up from $49, at Goldman Sachs as project-driven cash flow growth visibility improves throughout 2014.
- Following 10 consecutive quarters of no distribution growth, including nine in which distributions exceeded cash flow, Goldman believes fee-based growth driven by its Eagle Ford project backlog will put NS back on track for positive distribution coverage in H2 2014 and increases by mid-2015.
- The firm lowers earnings estimates for 2014 by 2.5% to $1.95 but raises 2015 and 2016 to $2.70 and $2.90 respectively.
Feb. 28, 2014, 5:40 PM
Feb. 5, 2014, 9:55 AM
- NuStar Energy (NS +4.8%) signs a long-term agreement allowing Occidental Petroleum (OXY) to ship natural gas liquids on NuStar’s currently idled 200-mile pipeline between Mont Belvieu and Corpus Christi, Texas.
- NS has begun work to reactivate the line, reverse its flow and convert it from refined products service to NGL service; the pipeline has capacity to move ~110K bbl/day.
- The project is scheduled to be completed and in full operation in Q2 2015, although the pipeline may flow at reduced rates this year; once the line is in service, it is expected to generate ~$23M/year of incremental EBITDA for NS.
Nov. 27, 2013, 3:48 PM
- NuStar (NS +3.1%) CEO Curt Anastasio, 56, plans to retire at year's end. EVP/general counsel Brad Barron will replace him. (PR)
- Anastasio has been NuStar's CEO since 2001. the year the oil terminal/pipeline owner went public. Shares performed quite well over the first six years of his tenure, but haven't done as well over the last six.
- NuStar has gradually rallied today, and is close to its 52-week high of $54.95.
Nov. 12, 2013, 10:31 AM
- NuStar Energy (NS +5.5%) reported Q3 earnings and revenue below analyst expectations, but an upbeat outlook is sending shares higher.
- Q4 EBITDA for all three NS segments should be higher than last year’s Q4, the company says, adding that its pipeline segment EBITDA should be $60M-$70M higher than last year.
- Looking ahead to 2014, increased crude oil throughputs in the Eagle Ford region should increase the pipeline segment's EBITDA by an additional $40M-$60M; NS says it expect to fully cover its distribution in 2014.
- Says it is in advanced talks with asphalt joint venture partner Lindsay Goldberg to exit its stake, which NS says would allow it to materially reduce its $250M credit facility and $150M of credit support.
Nov. 8, 2013, 3:12 PM
- NuStar Energy (NS +2.6%) announces an early termination of its crude oil supply contract with Venezuela's PDVSA, effective Jan. 1 and ahead of the original March 2015 termination date.
- NU says the move will significantly reduce its financial liability by eliminating the obligation to purchase 30K bbl/day of PDVSA crude.
Apr. 24, 2013, 9:38 AM
More on NuStar's (NS -1.9%) Q1 results: Results may not be comparable. Fuels marketing segment generated a loss, blamed on weak demand for bunkers and fuel oil plus increased competition in the Caribbean. Expects full-year 2013 EBITDA for all three segments to finish higher Y/Y. Sees 2013 capex at $400M-$425M, primarily on Eagle Ford projects.| Apr. 24, 2013, 9:38 AM | 1 Comment
Mar. 4, 2013, 11:35 AMNuStar Energy (NS -5.4%) is downgraded to Neutral from Outperform at Credit Suisse, which believes the company's distribution is again at risk to a cut following TexStar's termination of the NGL acquisition. Given the material impact of the failed transaction, the firm expects shares again will reflect the risk of a distribution cut. | Mar. 4, 2013, 11:35 AM | 8 Comments
Feb. 1, 2013, 9:46 AM
More on NuStar's (NS) Q4 results: Includes $0.52 per unit of expense items not reflected in initial Q4 guidance, roughly half relating to hedge losses recorded following the decision to sell the San Antonio refinery. Expects 2013 EBITDA results for all three segments to improve vs. 2012. Capital spending projected at $600M-$625M for 2013. Shares -1.4%.| Feb. 1, 2013, 9:46 AM
Nov. 29, 2012, 11:03 AM
NuStar Energy (NS +4.2%) shares pop higher following a management update (Briefing.com): NS is in advanced talks with an interested buyer for its San Antonio refinery; four internal growth projects in the Eagle Ford shale have been completed; interest from its Niobrara Shale play could increase as additional production comes online in future years.| Nov. 29, 2012, 11:03 AM | 1 Comment
Nov. 13, 2012, 2:21 PM
NuStar Energy (NS +5.8%) is upgraded to Neutral from Underperform at Credit Suisse, which says its concerns regarding the sustainability of NS' distribution are now reflected in the unit price. The firm thinks units are fairly valued based upon the cash flow power of NS' underlying fee-based pipeline and storage assets.| Nov. 13, 2012, 2:21 PM
Oct. 26, 2012, 3:22 PM