During the course of this call, we’ll also make reference to certain non-GAAP financial measures. Our non-GAAP financial measures should not be considered as alternatives to GAAP measures. Reconciliations of these non-GAAP financial measures to U.S. GAAP may be found either in our earnings call press release or on our website.
Now let me turn the call over to Curt.
Good morning, and thanks for joining us. The recently completed second quarter and the few weeks that followed were very active period for NuStar.In April we completed a unit train offloading facility at our St. James, Louisiana, terminal. That facility constructed jointly with EOG Resources can offload at least one 70,000 barrel unit train per day. To date, the facility is operating better than we had anticipated and should provide EBITDA to our storage segment in 2012 and for years to come.In early May, NuStar closed on a new five-year $1.5 billion credit facility that replaced our previous $1.25 billion facility. The larger revolver gives us access to additional capital to fund our increasing internal growth capital program. Late in May, we put hedges back on in our heavy fuel oil and bunker fuel inventory that had been on hedge for about two months during the quarter. We estimated that second quarter results would have been about $32 million or $0.44 per unit higher if these hedges had remained in place.Shortly after the inventory hedges were put back in place, we unwound the remaining $470 million of fixed-to-floating rate interest rate swaps that were in place on a portion of our 2020 and 2022 senior note maturities. With 10-year treasury rates falling to near record low levels, we decided to unwind the swaps. $22 million in cash proceeds were received as a result of unwinding the swap.
Select the service that is right for you!COMPARE ALL SERVICES
- $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
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV