NuStar Energy L.P. has announced robust results for the fourth quarter and full-year 2023, driven by strong revenues and volumes in its refined products pipelines and impressive performance in its Fuels Marketing Segment.
In the fourth quarter of 2023, NuStar reported a net income of $70 million, or $0.37 per unit, compared to $92 million, or $0.18 per unit, in the fourth quarter of 2022. The results for the fourth quarter of 2022 included a gain from insurance proceeds for tank reconstruction at its Selby terminal. Adjusted net income for the fourth quarter of 2022, excluding these items, stood at $75 million, or $0.34 per unit. For the full year 2023, NuStar reported a net income of $274 million, or $0.72 per unit, compared to $223 million, or $0.36 per unit, in 2022.
Noteworthy is the fact that earnings before interest, taxes, depreciation, and amortization (EBITDA) remained unaffected by the premium associated with the accelerated repurchase of the Series D preferred units. NuStar reported EBITDA of $199 million for the fourth quarter of 2023, up from $197 million in the fourth quarter of 2022. The adjusted EBITDA for full-year 2023 was $735 million, an improvement from $722 million in 2022.
The Distributable Cash Flow (DCF) for the fourth quarter of 2023 was $87 million, with a distribution coverage ratio of 1.73 times. The adjusted DCF for the full year 2023 was $354 million, with an adjusted distribution coverage ratio of 1.86 times.
NuStar chairman and CEO Brad Barron expressed satisfaction with the company’s performance, highlighting significant progress on strategic initiatives in 2023. The Pipeline Segment generated operating income of $130 million and EBITDA of $174 million in the fourth quarter of 2023. The Storage Segment reported operating income of $26 million and EBITDA of $45 million, driven by solid performance in the West Coast region.
Looking ahead to 2024, NuStar expects to continue its strong financial performance, with a focus on self-funding operational expenses, growth capital, and distributions. The company anticipates a healthy year-end debt-to-EBITDA ratio below four times and aims to generate net income in the range of $220 to $260 million and EBITDA in the range of $720 to $780 million for the full year 2024.
NuStar’s positive outlook and commitment to financial sustainability position the company for continued success in the evolving energy landscape.
For more information visit www.nustarenergy.com
