NET INCOME PER UNIT

We have identified the general partner interest and incentive distribution rights (IDR) as participating securities and use the two-class method when calculating the net income per unit applicable to limited partners, which is based on the weighted-average number of common units outstanding during the period. Basic and diluted net income per unit applicable to limited partners are the same because we have no potentially dilutive securities outstanding.

The following table details the calculation of earnings per unit:



	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
	(Thousands of Dollars, Except Unit and Per Unit Data)
Net income attributable to NuStar Energy L.P.	$	55,514		$	33,086		$	95,258		$	57,651
Less general partner distribution (including IDR)	12,766			12,766			25,532			25,532
Less limited partner distribution	85,285			85,285			170,570			170,570
Distributions in excess of earnings	$	(42,537	)	$	(64,965	)	$	(100,844	)	$	(138,451	)

General partner earnings:
Distributions	$	12,766		$	12,766		$	25,532		$	25,532
Allocation of distributions in excess of earnings (2%)	(851		)	(1,299		)	(2,017		)	(2,768		)
Total	$	11,915		$	11,467		$	23,515		$	22,764

Limited partner earnings:
Distributions	$	85,285		$	85,285		$	170,570		$	170,570
Allocation of distributions in excess of earnings (98%)	(41,686		)	(63,666		)	(98,827		)	(135,683		)
Total	$	43,599		$	21,619		$	71,743		$	34,887

Weighted-average limited partner units outstanding	77,886,078			77,886,078			77,886,078			77,886,078

Net income per unit applicable to limited partners	$	0.56		$	0.28		$	0.92		$	0.45