NuStar Energy's Quandary

Feb. 22, 2022 5:40 AM ETNuStar Energy L.P. (NS)53 Comments
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Summary

  • NuStar's business is humming, but preferred share issues cloud the future.
  • The company has options for managing the Series D preferred which go draconian next year.
  • Investors shouldn't expect any changes in distribution in the next 2-4 years.
  • We continue to use short calls to enhance yields and returns.

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NuStar Energy L.P.'s (NYSE:NS) reported slightly weaker results than expected at its last conference. But, on the other side, strong energy demands with its steady price increase, leave investors considering balancing acts to further understand NuStar's rewards vs. risks.

NuStar Balance Sheet

NuStar Energy

NuStar stock Weekly Chart

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This article was written by

Patient Tech Investor profile picture
2.59K Followers
I have been an investor for several decades enduring the 87 crash, 2000 crash, and 08 crash. I do use trading systems developed with TradeStation. I have enjoyed the rewards from both buy and hold and trading. My professional experiences includes several decades as a process control engineer. I hold a JD from an eastern law school.

Disclosure: I/we have a beneficial long position in the shares of NS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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