NuStar GP Holdings, LLC (NYSE: NSH) today announced that second quarter earnings per unit results are expected to be negatively impacted by NuStar Energy’s guidance that second quarter EBITDA results would be significantly lower than the $160 million earned in the second quarter of 2011. However, NuStar GP Holdings, LLC distributable cash flow available to unitholders for the second quarter of 2012 should be slightly higher than the same quarter in 2011.
Negative EBITDA in NuStar Energy’s asphalt and fuels marketing segment caused by continued weak demand for asphalt, reduced asphalt gross margins and lower margins on the sales of products in the company’s fuels marketing operations are the main causes for the lower second quarter earnings per unit projections. NuStar Energy’s second quarter should also be negatively impacted by a substantial amount of non-cash charges related primarily to the sale of 50% of the company’s asphalt operations.
As a result of these anticipated lower second quarter projections, effective June 29, 2012, NuStar GP Holdings, LLC and NuStar Energy obtained amendments to the debt to EBITDA covenant in their respective debt agreements for the second and third quarters of 2012.
In regard to performance for the last half of 2012, NuStar GP Holdings, LLC expects to benefit from the completion of two NuStar Energy pipeline projects in the Eagle Ford shale. These projects should contribute to improved distributable cash flow results for NuStar GP Holdings, LLC in the last half of 2012 when compared to the last half of 2011. Based on the company’s distributable cash flow expectations for the remainder of the year and 2013, NuStar GP Holdings plans to recommend that its Board of Directors approve a distribution of $0.51 per unit for the second quarter of 2012.As previously announced, the company will host a conference call on Friday, July 27, 2012 at 9:00 a.m. Central Time to discuss the second quarter 2012 earnings results, which will be released earlier that day.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV