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|NuStar GP Holdings, LLC Reports Increase in First Quarter 2011 Distributable Cash Flows|
NuStar Energy L.P. Internal Growth Projects and Recent Acquisition Expected to Lead to Increased Distributions in 2011
SAN ANTONIO, Apr 27, 2011 (BUSINESS WIRE) -- NuStar GP Holdings, LLC (NYSE: NSH) today announced that distributable cash flow available to unitholders for the first quarter of 2011 was $20.6 million, or $0.49 per unit, compared to $19.2 million, or $0.45 per unit, for the first quarter of 2010.
First quarter 2011 net income was $10.2 million, or $0.24 per unit, compared to $8.5 million, or $0.20 per unit, for the first quarter of 2010. The first quarter 2011 results include $1.2 million, or $0.03 per unit, of NuStar GP Holdings, LLC's portion of one-time expense items incurred by NuStar Energy L.P. Expenses related to the early termination of a 3rd party storage agreement at NuStar Energy L.P.'s Paulsboro, New Jersey asphalt refinery accounted for the majority of these one-time expense items. Excluding the effect of these early termination costs and other items incurred by NuStar Energy L.P., first quarter 2011 adjusted net income for NuStar GP Holdings, LLC would have been $11.4 million, or $0.27 per unit.
With respect to the quarterly distribution to unitholders for the first quarter of 2011, NuStar GP Holdings, LLC announced that its board of directors has declared a distribution of $0.48 per unit. This quarterly distribution represents an increase of $0.03 per unit, or 6.7 percent, over the $0.45 distribution for the first quarter of 2010. The first quarter 2011 distribution will be paid on May 18, 2011, to holders of record as of May 9, 2011.
"NuStar GP Holdings, LLC's 2011 results should benefit from NuStar Energy L.P.'s increased EBITDA and distributable cash flow projections for 2011," said Curt Anastasio, Chief Executive Officer and President of NuStar Energy L.P. and NuStar GP Holdings, LLC. "These improved results should allow us to recommend a distribution increase for NuStar GP Holdings, LLC to our Board of Directors again in 2011."
A conference call with management is scheduled for 10:00 a.m. ET (9:00 a.m. CT) today, April 27, 2011, to discuss the financial results for the first quarter of 2011. Investors interested in listening to the presentation may call 800/622-7620, passcode 55981834. International callers may access the presentation by dialing 706/645-0327, passcode 55981834. The company intends to have a playback available following the presentation, which may be accessed by calling 800/642-1687, passcode 55981834. A live broadcast of the conference call will also be available on the company's Web site at www.nustargpholdings.com.
NuStar GP Holdings, LLC is a publicly traded limited liability company that owns the two percent general partner interest, a 15.6 percent limited partner interest and the incentive distribution rights in NuStar Energy L.P., one of the largest asphalt refiners and marketers in the U.S. and the second largest independent liquids terminal operator in the nation with operations in the United States, Canada, Mexico, the Netherlands, the United Kingdom and Turkey. For more information, visit NuStar GP Holdings, LLC's Web site at www.nustargpholdings.com.
This release serves as qualified notice to nominees under Treasury Regulation Sections 1.1446-4(b)(4) and (d). Please note that 100% of NuStar's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, all of NuStar's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate for individuals and corporations, as applicable. Nominees, and not NuStar, are treated as the withholding agents responsible for withholding on the distributions received by them on behalf of foreign investors.
Cautionary Statement Regarding Forward-Looking Statements
This press release includes forward-looking statements regarding future events.All forward-looking statements are based on the company's beliefs as well as assumptions made by and information currently available to the company.These statements reflect the company's current views with respect to future events and are subject to various risks, uncertainties and assumptions.These risks, uncertainties and assumptions are discussed in NuStar Energy L.P. and NuStar GP Holdings, LLC's 2010 annual reports on Form 10-K and subsequent filings with the Securities and Exchange Commission.
SOURCE: NuStar GP Holdings, LLC
NuStar Energy, L.P., San Antonio