- NuStar Energy (NS +6.3%) surges after Q3 earnings missed estimates but topped expectations on revenues, which rose +11% Y/Y to $490M.
- Q3 unadjusted earnings were a net loss of $3.49/unit due to a one-time $377M non-cash charge related to the recent completion of the merger of NuStar GP Holdings and NuStar Energy, which did not impact net income, EBITDA or distributable cash flow; adjusted Q3 earnings per unit was $0.13.
- NS says the distribution coverage ratio was 1.38x for the quarter and 1.42x for the nine months ended Sept. 30.
- NS cites a volume ramp-up in the Permian Crude System and significant contributions from its East Pipeline System following asset acquisitions for its strong Q3 results, and says its FY 2018 Permian Crude exit rate remains on pace for 360K-380K bbl/day.