CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables)

Condensed Consolidating Balance Sheets

September 30, 2014

(Thousands of Dollars)



	NuStar Energy		NuStar Logistics		NuPOP		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	913	$	7	$	—	$	24,766	$	—		$	25,686
Receivables, net	—		44,063		14,384		162,439		—			220,886
Inventories	—		2,187		8,765		107,029		(44		)	117,937
Income tax receivable	—		—		—		3,661		—			3,661
Other current assets	—		13,537		3,349		20,637		—			37,523
Assets held for sale	—		—		—		2,256		—			2,256
Intercompany receivable	—		1,296,459		—		—		(1,296,459		)	—
Total current assets	913		1,356,253		26,498		320,788		(1,296,503		)	407,949
Property, plant and equipment, net	—		1,743,433		558,646		1,089,351		—			3,391,430
Intangible assets, net	—		57,511		—		4,304		—			61,815
Goodwill	—		149,453		170,652		297,324		—			617,429
Investment in wholly owned subsidiaries	2,333,931		175,150		907,661		925,563		(4,342,305		)	—
Investment in joint venture	—		—		—		72,872		—			72,872
Deferred income tax asset	—		—		—		4,902		—			4,902
Other long-term assets, net	673		287,358		26,329		6,610		—			320,970
Total assets	$	2,335,517	$	3,769,158	$	1,689,786	$	2,721,714	$	(5,638,808	)	$	4,877,367
Liabilities and Partners’ Equity
Payables	$	39	$	59,565	$	8,032	$	124,444	$	—		$	192,080
Short-term debt	—		21,400		—		—		—			21,400
Accrued interest payable	—		27,465		—		36		—			27,501
Accrued liabilities	747		17,352		7,514		13,440		—			39,053
Taxes other than income tax	63		7,234		3,909		3,847		—			15,053
Income tax payable	—		613		5		3,417		—			4,035
Intercompany payable	505,889		—		742,623		47,947		(1,296,459		)	—
Total current liabilities	506,738		133,629		762,083		193,131		(1,296,459		)	299,122
Long-term debt	—		2,731,551		—		—		—			2,731,551
Long-term payable to related party	—		25,047		—		5,442		—			30,489
Deferred income tax liability	—		—		—		27,785		—			27,785
Other long-term liabilities	—		12,433		2,192		5,150		—			19,775
Total partners’ equity	1,828,779		866,498		925,511		2,490,206		(4,342,349		)	1,768,645
Total liabilities and partners’ equity	$	2,335,517	$	3,769,158	$	1,689,786	$	2,721,714	$	(5,638,808	)	$	4,877,367

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 September 30, 2014

(Thousands of Dollars)



	NuStar Energy			NuStar Logistics			NuPOP			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	134,345		$	54,431		$	606,307		$	(661	)	$	794,422
Costs and expenses	479			72,363			36,710			590,409			(637		)	699,324
Operating (loss) income	(479		)	61,982			17,721			15,898			(24		)	95,098
Equity in earnings (loss) of subsidiaries	62,600			(1,952		)	18,402			36,119			(115,169		)	—
Equity in earnings of joint venture	—			—			—			2,749			—			2,749
Interest (expense) income, net	—			(33,306		)	16			283			—			(33,007		)
Other loss, net	—			(18		)	(20		)	(1,350		)	—			(1,388		)
Income from continuing operations before income tax expense	62,121			26,706			36,119			53,699			(115,193		)	63,452
Income tax expense	—			220			2			4,113			—			4,335
Income from continuing operations	62,121			26,486			36,117			49,586			(115,193		)	59,117
(Loss) income from discontinued operations, net of tax	—			(13		)	—			2,844			—			2,831
Net income	62,121			26,473			36,117			52,430			(115,193		)	61,948
Less net loss attributable to noncontrolling interest	—			—			—			(173		)	—			(173		)
Net income attributable to NuStar Energy L.P.	$	62,121		$	26,473		$	36,117		$	52,603		$	(115,193	)	$	62,121

Comprehensive income	$	62,121		$	33,515		$	36,117		$	41,607		$	(115,193	)	$	58,167
Less comprehensive loss attributable to noncontrolling interest	—			—			—			(159		)	—			(159		)
Comprehensive income attributable to NuStar Energy L.P.	$	62,121		$	33,515		$	36,117		$	41,766		$	(115,193	)	$	58,326

Condensed Consolidating Statements of Comprehensive Income

For the Three Months Ended September 30, 2013

(Thousands of Dollars)



	NuStar Energy			NuStar Logistics			NuPOP		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	106,892		$	50,669	$	629,335		$	(8,751	)	$	778,145
Costs and expenses	507			66,288			32,274		619,156			(8,831		)	709,394
Operating (loss) income	(507		)	40,604			18,395		10,179			80			68,751
Equity in earnings of subsidiaries	33,904			8,136			4,992		23,449			(70,481		)	—
Equity in (loss) earnings of joint ventures	—			(8,202		)	—		2,844			—			(5,358		)
Interest (expense) income, net	—			(29,451		)	76		380			—			(28,995		)
Other income, net	—			—			8		1,381			—			1,389
Income from continuing operations before income tax expense	33,397			11,087			23,471		38,233			(70,401		)	35,787
Income tax expense (benefit)	—			146			1		(42		)	—			105
Income from continuing operations	33,397			10,941			23,470		38,275			(70,401		)	35,682
Loss from discontinued operations, net of tax	—			(543		)	—		(1,903		)	—			(2,446		)
Net income	33,397			10,398			23,470		36,372			(70,401		)	33,236
Less net loss attributable to noncontrolling interest	—			—			—		(161		)	—			(161		)
Net income attributable to NuStar Energy L.P.	$	33,397		$	10,398		$	23,470	$	36,533		$	(70,401	)	$	33,397

Comprehensive income	$	33,397		$	12,746		$	23,470	$	39,578		$	(70,401	)	$	38,790
Less comprehensive loss attributable to noncontrolling interest	—			—			—		(729		)	—			(729		)
Comprehensive income attributable to NuStar Energy L.P.	$	33,397		$	12,746		$	23,470	$	40,307		$	(70,401	)	$	39,519

Condensed Consolidating Statements of Comprehensive Income

For the Nine Months Ended September 30, 2014

(Thousands of Dollars)



	NuStar Energy			NuStar Logistics			NuPOP			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	369,308		$	163,890		$	1,869,240		$	(9,058	)	$	2,393,380
Costs and expenses	1,352			204,415			105,473			1,825,609			(9,024		)	2,127,825
Operating (loss) income	(1,352		)	164,893			58,417			43,631			(34		)	265,555
Equity in earnings (loss) of subsidiaries	158,732			(2,811		)	46,874			105,293			(308,088		)	—
Equity in (loss) earnings of joint venture	—			(8,278		)	—			10,015			—			1,737
Interest (expense) income, net	—			(100,121		)	38			592			—			(99,491		)
Other income (expense), net	—			524			(36		)	1,328			—			1,816
Income from continuing operations before income tax expense	157,380			54,207			105,293			160,859			(308,122		)	169,617
Income tax expense	1			628			5			9,683			—			10,317
Income from continuing operations	157,379			53,579			105,288			151,176			(308,122		)	159,300
Loss from discontinued operations, net of tax	—			(181		)	—			(2,135		)	—			(2,316		)
Net income	157,379			53,398			105,288			149,041			(308,122		)	156,984
Less net loss attributable to noncontrolling interest	—			—			—			(395		)	—			(395		)
Net income attributable to NuStar Energy L.P.	$	157,379		$	53,398		$	105,288		$	149,436		$	(308,122	)	$	157,379

Comprehensive income	$	157,379		$	65,183		$	105,288		$	140,083		$	(308,122	)	$	159,811
Less comprehensive loss attributable to noncontrolling interest	—			—			—			(828		)	—			(828		)
Comprehensive income attributable to NuStar Energy L.P.	$	157,379		$	65,183		$	105,288		$	140,911		$	(308,122	)	$	160,639

Condensed Consolidating Statements of Comprehensive Income

For the Nine Months Ended September 30, 2013

(Thousands of Dollars)



	NuStar Energy			NuStar Logistics			NuPOP			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	308,414		$	151,189		$	2,244,549		$	(25,807	)	$	2,678,345
Costs and expenses	1,438			179,298			104,311			2,209,992			(25,775		)	2,469,264
Operating (loss) income	(1,438		)	129,116			46,878			34,557			(32		)	209,081
Equity in earnings of subsidiaries	92,486			15,779			20,750			62,614			(191,629		)	—
Equity in (loss) earnings of joint ventures	—			(31,713		)	—			5,084			—			(26,629		)
Interest (expense) income, net	—			(83,788		)	(4,941		)	440			—			(88,289		)
Other income (loss), net	—			2,466			(65		)	1,516			—			3,917
Income from continuing operations before income tax expense	91,048			31,860			62,622			104,211			(191,661		)	98,080
Income tax expense	—			420			4			7,663			—			8,087
Income from continuing operations	91,048			31,440			62,618			96,548			(191,661		)	89,993
(Loss) income from discontinued operations, net of tax	—			(1,624		)	—			2,240			—			616
Net income	91,048			29,816			62,618			98,788			(191,661		)	90,609
Less net loss attributable to noncontrolling interest	—			—			—			(439		)	—			(439		)
Net income attributable to NuStar Energy L.P.	$	91,048		$	29,816		$	62,618		$	99,227		$	(191,661	)	$	91,048

Comprehensive income	$	91,048		$	43,306		$	62,618		$	84,731		$	(191,661	)	$	90,042
Less comprehensive loss attributable to noncontrolling interest	—			—			—			(2,206		)	—			(2,206		)
Comprehensive income attributable to NuStar Energy L.P.	$	91,048		$	43,306		$	62,618		$	86,937		$	(191,661	)	$	92,248

Condensed Consolidating Statements of Cash Flows

For the Nine Months Ended September 30, 2014

(Thousands of Dollars)



	NuStar Energy			NuStar Logistics			NuPOP			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by operating activities	$	292,757		$	133,967		$	76,913		$	203,783		$	(392,225	)	$	315,195
Cash flows from investing activities:
Capital expenditures	—			(174,296		)	(6,308		)	(48,944		)	—			(229,548		)
Change in accounts payable related to capital expenditures	—			18,470			81			(7,641		)	—			10,910
Proceeds from sale or disposition of assets	—			651			13			25,311			—			25,975
Increase in note receivable from related party	—			(13,328		)	—			—			—			(13,328		)
Other, net	—			(46		)	—			(830		)	23			(853		)
Net cash used in investing activities	—			(168,549		)	(6,214		)	(32,104		)	23			(206,844		)
Cash flows from financing activities:
Debt borrowings	—			742,636			—			—			—			742,636
Debt repayments	—			(635,069		)	—			—			—			(635,069		)
Distributions to unitholders and general partner	(294,153		)	(196,101		)	(98,052		)	(98,072		)	392,225			(294,153		)
Net intercompany borrowings (repayments)	1,405			100,930			27,353			(129,688		)	—			—
Other, net	—			(114		)	—			2,677			(23		)	2,540
Net cash (used in) provided by financing activities	(292,748		)	12,282			(70,699		)	(225,083		)	392,202			(184,046		)
Effect of foreign exchange rate changes on cash	—			—			—			638			—			638
Net increase (decrease) in cash and cash equivalents	9			(22,300		)	—			(52,766		)	—			(75,057		)
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		$	—		$	24,766		$	—		$	25,686

Condensed Consolidating Statements of Cash Flows

For the Nine Months Ended September 30, 2013

(Thousands of Dollars)



	NuStar Energy			NuStar Logistics			NuPOP			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by operating activities	$	292,499		$	159,157		$	50,587		$	170,479		$	(294,182	)	$	378,540
Cash flows from investing activities:
Capital expenditures	—			(181,580		)	(13,449		)	(65,672		)	—			(260,701		)
Change in accounts payable related to capital expenditures	—			(5,419		)	1,534			1,006			—			(2,879		)
Proceeds from sale or disposition of assets	—			116,348			28			91			—			116,467
Increase in note receivable from related party	—			(50,761		)	—			—			—			(50,761		)
Other, net	—			15			—			—			141			156
Net cash used in investing activities	—			(121,397		)	(11,887		)	(64,575		)	141			(197,718		)
Cash flows from financing activities:
Debt borrowings	—			1,299,220			—			—			—			1,299,220
Note offering, net	—			687,151			—			—			—			687,151
Debt repayments	—			(1,647,182		)	(250,000		)	—			—			(1,897,182		)
Distributions to unitholders and general partner	(294,153		)	(294,153		)	—			(29		)	294,182			(294,153		)
Payments for termination of interest rate swaps	—			(33,697		)	—			—			—			(33,697		)
Net intercompany borrowings (repayments)	(5,047		)	(53,557		)	211,300			(152,696		)	—			—
Other, net	(46		)	3,355			—			—			(141		)	3,168
Net cash used in financing activities	(299,246		)	(38,863		)	(38,700		)	(152,725		)	294,041			(235,493		)
Effect of foreign exchange rate changes on cash	—			—			—			(4,412		)	—			(4,412		)
Net decrease in cash and cash equivalents	(6,747		)	(1,103		)	—			(51,233		)	—			(59,083		)
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	$	286		$	9		$	—		$	24,224		$	—		$	24,519