CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables)

Condensed Consolidating Balance Sheets

June 30, 2014

(Thousands of Dollars)



	NuStar Energy		NuStar Logistics		NuPOP		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	913	$	7	$	—	$	48,156	$	—		$	49,076
Receivables, net	2		61,517		9,880		198,658		(15,089		)	254,968
Inventories	—		2,355		2,221		108,282		(20		)	112,838
Income tax receivable	—		—		—		4,551		—			4,551
Other current assets	—		21,954		2,636		15,675		—			40,265
Assets held for sale	—		—		—		6,420		—			6,420
Intercompany receivable	—		1,308,837		—		—		(1,308,837		)	—
Total current assets	915		1,394,670		14,737		381,742		(1,323,946		)	468,118
Property, plant and equipment, net	—		1,674,650		563,406		1,107,080		—			3,345,136
Intangible assets, net	—		59,221		—		5,738		—			64,959
Goodwill	—		149,453		170,652		297,324		—			617,429
Investment in wholly owned subsidiaries	2,369,382		177,102		889,259		938,475		(4,374,218		)	—
Investment in joint venture	—		—		—		72,908		—			72,908
Deferred income tax asset	—		—		—		5,057		—			5,057
Other long-term assets, net	611		288,385		26,331		6,845		—			322,172
Total assets	$	2,370,908	$	3,743,481	$	1,664,385	$	2,815,169	$	(5,698,164	)	$	4,895,779
Liabilities and Partners’ Equity
Payables	$	—	$	30,926	$	17,496	$	153,847	$	(15,089	)	$	187,180
Accrued interest payable	—		33,582		—		42		—			33,624
Accrued liabilities	589		16,849		5,044		14,774		—			37,256
Taxes other than income tax	—		5,254		2,886		2,675		—			10,815
Income tax payable	—		393		3		2,477		—			2,873
Intercompany payable	505,610		—		699,947		103,280		(1,308,837		)	—
Total current liabilities	506,199		87,004		725,376		277,095		(1,323,926		)	271,748
Long-term debt	—		2,726,629		—		—		—			2,726,629
Long-term payable to related party	—		34,990		—		5,442		—			40,432
Deferred income tax liability	—		—		—		29,152		—			29,152
Other long-term liabilities	—		12,850		588		5,021		—			18,459
Total partners’ equity	1,864,709		882,008		938,421		2,498,459		(4,374,238		)	1,809,359
Total liabilities and partners’ equity	$	2,370,908	$	3,743,481	$	1,664,385	$	2,815,169	$	(5,698,164	)	$	4,895,779

Condensed Consolidating Balance Sheets

December 31, 2013

(Thousands of Dollars)



	NuStar Energy		NuStar Logistics		NuPOP		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	904	$	22,307	$	—	$	77,532	$	—		$	100,743
Receivables, net	—		87,899		13,281		231,220		(6		)	332,394
Inventories	—		2,083		2,879		133,195		(10		)	138,147
Income tax receivable	—		—		—		826		—			826
Other current assets	—		18,109		2,334		19,009		—			39,452
Assets held for sale	—		—		—		21,987		—			21,987
Intercompany receivable	—		1,521,552		—		—		(1,521,552		)	—
Total current assets	904		1,651,950		18,494		483,769		(1,521,568		)	633,549
Property, plant and equipment, net	—		1,556,893		573,694		1,180,066		—			3,310,653
Intangible assets, net	—		16,993		—		54,256		—			71,249
Goodwill	—		149,453		170,652		297,324		—			617,429
Investment in wholly owned subsidiaries	2,469,331		177,961		860,787		918,339		(4,426,418		)	—
Investment in joint ventures	—		—		—		68,735		—			68,735
Deferred income tax asset	—		—		—		5,769		—			5,769
Note receivable from related party	—		165,440		—		—		—			165,440
Other long-term assets, net	611		118,254		26,331		14,166		—			159,362
Total assets	$	2,470,846	$	3,836,944	$	1,649,958	$	3,022,424	$	(5,947,986	)	$	5,032,186
Liabilities and Partners’ Equity
Payables	$	123	$	84,533	$	7,517	$	214,909	$	(6	)	$	307,076
Accrued interest payable	—		33,066		—		47		—			33,113
Accrued liabilities	585		18,850		6,133		13,064		—			38,632
Taxes other than income tax	125		6,272		2,873		475		—			9,745
Income tax payable	—		618		6		3,382		—			4,006
Intercompany payable	504,483		—		714,847		302,222		(1,521,552		)	—
Total current liabilities	505,316		143,339		731,376		534,099		(1,521,558		)	392,572
Long-term debt	—		2,655,553		—		—		—			2,655,553
Long-term payable to related party	—		35,696		—		5,443		—			41,139
Deferred income tax liability	—		—		—		27,350		—			27,350
Other long-term liabilities	—		4,961		306		6,511		—			11,778
Total partners’ equity	1,965,530		997,395		918,276		2,449,021		(4,426,428		)	1,903,794
Total liabilities and partners’ equity	$	2,470,846	$	3,836,944	$	1,649,958	$	3,022,424	$	(5,947,986	)	$	5,032,186

Condensed Consolidating Statements of Comprehensive Income

For the Three Months Ended June 30, 2014

(Thousands of Dollars)



	NuStar Energy			NuStar Logistics			NuPOP		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	126,744		$	57,038	$	566,369		$	(406	)	$	749,745
Costs and expenses	400			71,471			35,808		553,124			(412		)	660,391
Operating (loss) income	(400		)	55,273			21,230		13,245			6			89,354
Equity in earnings (loss) of subsidiaries	55,914			(3,643		)	16,018		37,259			(105,548		)	—
Equity in earnings of joint venture	—			—			—		3,294			—			3,294
Interest (expense) income, net	—			(33,318		)	8		188			—			(33,122		)
Other income (loss), net	—			549			3		(1,026		)	—			(474		)
Income from continuing operations before income tax expense	55,514			18,861			37,259		52,960			(105,542		)	59,052
Income tax expense	—			217			2		1,646			—			1,865
Income from continuing operations	55,514			18,644			37,257		51,314			(105,542		)	57,187
Loss from discontinued operations, net of tax	—			—			—		(1,788		)	—			(1,788		)
Net income	55,514			18,644			37,257		49,526			(105,542		)	55,399
Less net loss attributable to noncontrolling interest	—			—			—		(115		)	—			(115		)
Net income attributable to NuStar Energy L.P.	$	55,514		$	18,644		$	37,257	$	49,641		$	(105,542	)	$	55,514

Comprehensive income	$	55,514		$	20,914		$	37,257	$	55,783		$	(105,542	)	$	63,926
Less comprehensive loss attributable to noncontrolling interest	—			—			—		(117		)	—			(117		)
Comprehensive income attributable to NuStar Energy L.P.	$	55,514		$	20,914		$	37,257	$	55,900		$	(105,542	)	$	64,043

Condensed Consolidating Statements of Comprehensive Income

For the Three Months Ended June 30, 2013

(Thousands of Dollars)



	NuStar Energy			NuStar Logistics			NuPOP			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	102,833		$	47,894		$	760,318		$	(9,031	)	$	902,014
Costs and expenses	440			47,612			36,028			749,893			(8,931		)	825,042
Operating (loss) income	(440		)	55,221			11,866			10,425			(100		)	76,972
Equity in earnings of subsidiaries	33,526			1,145			7,733			17,599			(60,003		)	—
Equity in (loss) earnings of joint ventures	—			(11,970		)	—			1,842			—			(10,128		)
Interest (expense) income, net	—			(27,547		)	(1,994		)	116			—			(29,425		)
Other (expense) income, net	—			(342		)	11			2,515			—			2,184
Income from continuing operations before income tax expense	33,086			16,507			17,616			32,497			(60,103		)	39,603
Income tax expense	—			88			1			4,802			—			4,891
Income from continuing operations	33,086			16,419			17,615			27,695			(60,103		)	34,712
Loss from discontinued operations, net of tax	—			(565		)	—			(1,178		)	—			(1,743		)
Net income	33,086			15,854			17,615			26,517			(60,103		)	32,969
Less net loss attributable to noncontrolling interest	—			—			—			(117		)	—			(117		)
Net income attributable to NuStar Energy L.P.	$	33,086		$	15,854		$	17,615		$	26,634		$	(60,103	)	$	33,086

Comprehensive income	$	33,086		$	20,028		$	17,615		$	18,612		$	(60,103	)	$	29,238
Less comprehensive loss attributable to noncontrolling interest	—			—			—			(1,029		)	—			(1,029		)
Comprehensive income attributable to NuStar Energy L.P.	$	33,086		$	20,028		$	17,615		$	19,641		$	(60,103	)	$	30,267

Condensed Consolidating Statements of Comprehensive Income

For the Six Months Ended June 30, 2014

(Thousands of Dollars)



	NuStar Energy			NuStar Logistics			NuPOP			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	234,963		$	109,459		$	1,262,933		$	(8,397	)	$	1,598,958
Costs and expenses	873			132,052			68,763			1,235,200			(8,387		)	1,428,501
Operating (loss) income	(873		)	102,911			40,696			27,733			(10		)	170,457
Equity in earnings (loss) of subsidiaries	96,132			(859		)	28,472			69,174			(192,919		)	—
Equity in (loss) earnings of joint venture	—			(8,278		)	—			7,266			—			(1,012		)
Interest (expense) income, net	—			(66,815		)	22			309			—			(66,484		)
Other income (expense), net	—			542			(16		)	2,678			—			3,204
Income from continuing operations before income tax expense	95,259			27,501			69,174			107,160			(192,929		)	106,165
Income tax expense	1			408			3			5,570			—			5,982
Income from continuing operations	95,258			27,093			69,171			101,590			(192,929		)	100,183
Loss from discontinued operations, net of tax	—			(168		)	—			(4,979		)	—			(5,147		)
Net income	95,258			26,925			69,171			96,611			(192,929		)	95,036
Less net loss attributable to noncontrolling interest	—			—			—			(222		)	—			(222		)
Net income attributable to NuStar Energy L.P.	$	95,258		$	26,925		$	69,171		$	96,833		$	(192,929	)	$	95,258

Comprehensive income	$	95,258		$	31,668		$	69,171		$	98,476		$	(192,929	)	$	101,644
Less comprehensive loss attributable to noncontrolling interest	—			—			—			(669		)	—			(669		)
Comprehensive income attributable to NuStar Energy L.P.	$	95,258		$	31,668		$	69,171		$	99,145		$	(192,929	)	$	102,313

Condensed Consolidating Statements of Comprehensive Income

For the Six Months Ended June 30, 2013

(Thousands of Dollars)



	NuStar Energy			NuStar Logistics			NuPOP			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	201,522		$	100,520		$	1,615,214		$	(17,056	)	$	1,900,200
Costs and expenses	931			113,010			72,037			1,590,836			(16,944		)	1,759,870
Operating (loss) income	(931		)	88,512			28,483			24,378			(112		)	140,330
Equity in earnings of subsidiaries	58,582			7,643			15,758			39,165			(121,148		)	—
Equity in (loss) earnings of joint ventures	—			(23,511		)	—			2,240			—			(21,271		)
Interest (expense) income, net	—			(54,337		)	(5,017		)	60			—			(59,294		)
Other income (loss), net	—			2,466			(73		)	135			—			2,528
Income from continuing operations before income tax expense	57,651			20,773			39,151			65,978			(121,260		)	62,293
Income tax expense	—			274			3			7,705			—			7,982
Income from continuing operations	57,651			20,499			39,148			58,273			(121,260		)	54,311
(Loss) income from discontinued operations, net of tax	—			(1,081		)	—			4,143			—			3,062
Net income	57,651			19,418			39,148			62,416			(121,260		)	57,373
Less net loss attributable to noncontrolling interest	—			—			—			(278		)	—			(278		)
Net income attributable to NuStar Energy L.P.	$	57,651		$	19,418		$	39,148		$	62,694		$	(121,260	)	$	57,651

Comprehensive income	$	57,651		$	30,560		$	39,148		$	45,153		$	(121,260	)	$	51,252
Less comprehensive loss attributable to noncontrolling interest	—			—			—			(1,477		)	—			(1,477		)
Comprehensive income attributable to NuStar Energy L.P.	$	57,651		$	30,560		$	39,148		$	46,630		$	(121,260	)	$	52,729

Condensed Consolidating Statements of Cash Flows

For the Six Months Ended June 30, 2014

(Thousands of Dollars)



	NuStar Energy			NuStar Logistics			NuPOP			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by operating activities	$	194,985		$	57,932		$	68,634		$	123,974		$	(245,143	)	$	200,382
Cash flows from investing activities:
Capital expenditures	—			(82,959		)	(3,927		)	(31,986		)	—			(118,872		)
Change in accounts payable related to capital expenditures	—			(4,182		)	(500		)	(9,133		)	—			(13,815		)
Proceeds from sale or disposition of assets	—			651			5			13,785			—			14,441
Increase in note receivable from related party	—			(13,328		)	—			—			—			(13,328		)
Other, net	—			(46		)	—			—			23			(23		)
Net cash used in investing activities	—			(99,864		)	(4,422		)	(27,334		)	23			(131,597		)
Cash flows from financing activities:
Debt borrowings	—			439,717			—			—			—			439,717
Debt repayments	—			(366,433		)	—			—			—			(366,433		)
Distributions to unitholders and general partner	(196,102		)	(147,076		)	(49,026		)	(49,041		)	245,143			(196,102		)
Net intercompany borrowings (repayments)	1,126			90,600			(15,186		)	(76,540		)	—			—
Other, net	—			2,824			—			197			(23		)	2,998
Net cash (used in) provided by financing activities	(194,976		)	19,632			(64,212		)	(125,384		)	245,120			(119,820		)
Effect of foreign exchange rate changes on cash	—			—			—			(632		)	—			(632		)
Net increase (decrease) in cash and cash equivalents	9			(22,300		)	—			(29,376		)	—			(51,667		)
Cash and cash equivalents as of the beginning of the period	904			22,307			—			77,532			—			100,743
Cash and cash equivalents as of the end of the period	$	913		$	7		$	—		$	48,156		$	—		$	49,076

Condensed Consolidating Statements of Cash Flows

For the Six Months Ended June 30, 2013

(Thousands of Dollars)



	NuStar Energy			NuStar Logistics			NuPOP			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by operating activities	$	194,754		$	89,580		$	48,178		$	95,165		$	(196,122	)	$	231,555
Cash flows from investing activities:
Capital expenditures	—			(123,253		)	(5,664		)	(34,278		)	—			(163,195		)
Proceeds from sale or disposition of assets	—			116,322			20			105			—			116,447
Increase in note receivable from related party	—			(97,961		)	—			—			—			(97,961		)
Investment in subsidiaries	(166		)	—			—			—			166			—
Other, net	166			(34		)	—			—			—			132
Net cash used in investing activities	—			(104,926		)	(5,644		)	(34,173		)	166			(144,577		)
Cash flows from financing activities:
Debt borrowings	—			1,045,406			—			—			—			1,045,406
Note offering, net	—			391,059			—			—			—			391,059
Debt repayments	—			(1,084,532		)	(250,000		)	—			—			(1,334,532		)
Distributions to unitholders and general partner	(196,102		)	(196,102		)	—			(20		)	196,122			(196,102		)
Payments for termination of interest rate swaps	—			(33,697		)	—			—			—			(33,697		)
Net intercompany borrowings (repayments)	1,395			(111,226		)	207,466			(97,635		)	—			—
Other, net	(45		)	3,335			—			196			(166		)	3,320
Net cash (used in) provided by financing activities	(194,752		)	14,243			(42,534		)	(97,459		)	195,956			(124,546		)
Effect of foreign exchange rate changes on cash	—			—			—			(3,907		)	—			(3,907		)
Net increase (decrease) in cash and cash equivalents	2			(1,103		)	—			(40,374		)	—			(41,475		)
Cash and cash equivalents as of the beginning of the period	7,033			1,112			—			75,457			—			83,602
Cash and cash equivalents as of the end of the period	$	7,035		$	9		$	—		$	35,083		$	—		$	42,127