Aug. 07–NuStar Energy’s second quarter profits more than tripled compared to the same period in 2017 as more crude oil flowed through the company’s West Texas pipelines.
The San Antonio pipeline company earned $13.7 million in the three months ended June 30, or 15 cents a unit, up 214 percent from the $4.4 million or 5 cents a unit during the same period last year. The result beat Wall Street expectations. Analysts surveyed by Bloomberg expected the company would make 13 cents a share.
“Our Permian Crude System continues to grow and perform and was the primary contributor to a strong second quarter for NuStar,” said President and CEO Brad Barron. “During the second quarter of 2018, the Permian Crude System averaged pipeline receipts of over 266,000 barrels per day and exited July at over 300,000 barrels per day. Since our acquisition of the Permian Crude System in May of 2017 volumes are up 140 percent.”
The midstream company bought the West Texas pipeline system in May 2017 for $1.5 billion. The purchase included around 500 miles of pipelines with a daily capacity of 412,000 barrels a day, and a million barrels of storage capacity.
NuStar Energy recently completed its merger with its general partner, NuStar GP Holdings, in a bid to stabilize its balance sheet. The merger is supposed to help the midstream company operate within its own cash flow rather than relying on outside investments.
NuStar Energy operates more than 9,400 miles of pipelines and 97 million barrels of storage capacity in the U.S. and around the world.
(c)2018 the San Antonio Express-News
Visit the San Antonio Express-News at www.mysanantonio.com
Distributed by Tribune Content Agency, LLC.