San Antonio-based NuStar Energy LP on Feb. 15 reported fourth-quarter net income of $70.4 million on revenues of $451.7 million, down from the year-ago $91.6 million and $430 million, respectively. EBITDA was $199.2 million, down from $213.4 million.
“I am pleased to report that we have delivered another quarter of solid earnings results and made significant progress on many of our strategic initiatives in 2023,” said NuStar Chairman and CEO Brad Barron. The company singled out the strong revenues and volumes of its refined products pipelines, which include anhydrous ammonia, and a strong performance by the Fuels Marketing segment.
NuStar’s Pipeline segment generated fourth-quarter operating income of $129.6 million and EBITDA of $174 million, compared to the year-ago $131.6 million and $176 million, as increased revenues and throughputs across refined products systems were offset by decreases from the Permian Crude System and Corpus Christi Crude System.
“As we have said on prior calls, our Permian volumes reflected some producer-specific operational issues and delays in 2023, which were largely resolved over the course of the year,” Barron said. Fourth-quarter revenues were $228.6 million, nearly level with the year-ago $229.9 million.
For full-year 2023, NuStar’s Pipeline generated operating income of $483.2 million and EBITDA of $659 million, compared to operating income of $438.7 million and EBITDA of $617 million in 2022. Revenues were $873.9 million, up from $828.2 million.
“Our refined products systems, along with our ammonia system, generated solid, dependable revenue in 2023 as total throughputs were up compared to 2022, reflecting the strength of these assets and our strong position in the markets we serve in the mid-Continent and throughout Texas,” Barron said.
NuStar reported full-year net income of $273.7 million on revenues of $1.63 billion, up from the year-ago $222.7 million and $1.68 billion, respectively. EBITDA was $776.1 million, up from $694.2 million.
Although the pending $7.3 billion acquisition by Sunoco LP (GM Jan. 26, p. 1) is expected to close as early as second-quarter 2024, 2024 financial expectations were provided for NuStar on a stand-alone basis. The company expects to generate full-year 2024 net income in the range of $220-$260 million and full-year 2024 EBITDA in the range of $720-$780 million.
Sunoco CEO Joseph Kim told analysts in January that the company would be able to accelerate expansion opportunities within the NuStar Ammonia System’s 2,000-mile ammonia pipeline. The company sees the potential due to the growing low carbon ammonia capacity, which benefit the pipeline and storage and export out of its St. James, La., facility.