Undervalued-Stock.com issues BUY rating for NuStar Energy LP (NYSE:NS)
NuStar Energy LP NYSE:NS
NuStar Energy L.P. (NuStar Energy), a Delaware limited partnership, completed its initial public offering of common units on April 16, 2001. Our common units are traded on the New York Stock Exchange (NYSE) under the symbol “NS.” Our principal executive offices are located at 2330 North Loop 1604 West, San Antonio, Texas 78248 and our telephone number is (210) 918-2000.
We are engaged in the terminalling and storage of petroleum products, the transportation of petroleum products and anhydrous ammonia, and petroleum refining and marketing. We divide our operations into the following three reportable business segments: storage, transportation, and asphalt and fuels marketing. As of December 31, 2011, our assets included:
• | 66 terminal and storage facilities providing 84.6 million barrels of storage capacity; |
• | 5,480 miles of refined product pipelines with 21 associated terminals providing storage capacity of 4.5 million barrels and two tank farms providing storage capacity of 1.2 million barrels; |
• | 2,000 miles of anhydrous ammonia pipelines; |
• | 940 miles of crude oil pipelines with 1.9 million barrels of associated storage capacity; |
• | two asphalt refineries with a combined throughput capacity of 104,000 barrels per day and two associated terminal facilities with a combined storage capacity of 5.0 million barrels; and |
• | a fuels refinery with a throughput capacity of 14,500 barrels per day and 0.4 million barrels of aggregate storage capacity. |
We conduct our operations through our wholly owned subsidiaries, primarily NuStar Logistics, L.P. (NuStar Logistics) and NuStar Pipeline Operating Partnership L.P. (NuPOP). Our revenues include:
• | tariffs for transporting crude oil, refined products and anhydrous ammonia through our pipelines; |
• | fees for the use of our terminal and storage facilities and related ancillary services; and |
• | sales of asphalt and other refined petroleum products. |
Our business strategy is to increase per unit cash distributions to our partners through:
• | continuous improvement of our operations by improving safety and environmental stewardship, cost controls and asset reliability and integrity; |
• | internal growth through enhancing the utilization of our existing assets by expanding our business with current and new customers, as well as investments in strategic expansion projects; |
• | external growth from acquisitions that meet our financial and strategic criteria; |
• | identification of non-core assets that do not meet our financial and strategic criteria and evaluation of potential dispositions; |
• | complementary operations such as our fuels marketing operations, which provide us the opportunity to optimize the use and profitability of our assets; and |
• | growth and improvement of our asphalt operations to benefit from anticipated decreases in overall asphalt supply and higher asphalt margins. |
The term “throughput” as used in this document generally refers to the crude oil or refined product barrels or tons of ammonia, as applicable, that pass through our pipelines, terminals, storage tanks or refineries.
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