| CONDENSED CONSOLIDATING FINANCIAL STATEMENTS |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS
NuStar Energy has no operations and its assets consist mainly of its investments in NuStar Logistics and NuPOP, both wholly owned subsidiaries. The senior and subordinated notes issued by NuStar Logistics are fully and unconditionally guaranteed by NuStar Energy and NuPOP. As a result, the following condensed consolidating financial statements are presented as an alternative to providing separate financial statements for NuStar Logistics and NuPOP.
Condensed Consolidating Balance Sheets March 31, 2016 (Thousands of Dollars) | | | | | | | | | | | | | | | | | | | | | | | | | | NuStar Energy | | NuStar Logistics | | NuPOP | | Non-Guarantor Subsidiaries | | Eliminations | | Consolidated | Assets | | | | | | | | | | | | Cash and cash equivalents | $ | 879 |
| | $ | 4 |
| | $ | — |
| | $ | 130,034 |
| | $ | — |
| | $ | 130,917 |
| Receivables, net | — |
| | 727 |
| | — |
| | 135,037 |
| | — |
| | 135,764 |
| Inventories | — |
| | 1,929 |
| | 5,755 |
| | 33,489 |
| | — |
| | 41,173 |
| Other current assets | 93 |
| | 8,088 |
| | 4,402 |
| | 13,136 |
| | — |
| | 25,719 |
| Intercompany receivable | — |
| | 1,574,862 |
| | — |
| | — |
| | (1,574,862 | ) | | — |
| Total current assets | 972 |
| | 1,585,610 |
| | 10,157 |
| | 311,696 |
| | (1,574,862 | ) | | 333,573 |
| Property, plant and equipment, net | — |
| | 1,919,232 |
| | 568,355 |
| | 1,199,100 |
| | — |
| | 3,686,687 |
| Intangible assets, net | — |
| | 47,251 |
| | — |
| | 61,300 |
| | — |
| | 108,551 |
| Goodwill | — |
| | 149,453 |
| | 170,652 |
| | 376,532 |
| | — |
| | 696,637 |
| Investment in wholly owned subsidiaries | 2,165,781 |
| | 45,432 |
| | 1,056,445 |
| | 909,821 |
| | (4,177,479 | ) | | — |
| Deferred income tax asset | — |
| | — |
| | — |
| | 1,681 |
| | (1,179 | ) | | 502 |
| Other long-term assets, net | 939 |
| | 228,901 |
| | 26,329 |
| | 13,430 |
| | — |
| | 269,599 |
| Total assets | $ | 2,167,692 |
| | $ | 3,975,879 |
| | $ | 1,831,938 |
| | $ | 2,873,560 |
| | $ | (5,753,520 | ) | | $ | 5,095,549 |
| Liabilities and Partners’ Equity | | | | | | | | | | | | Payables | $ | — |
| | $ | 25,923 |
| | $ | 7,470 |
| | $ | 67,389 |
| | $ | — |
| | $ | 100,782 |
| Short-term debt | — |
| | 81,000 |
| | — |
| | — |
| | — |
| | 81,000 |
| Accrued interest payable | — |
| | 27,874 |
| | — |
| | 23 |
| | — |
| | 27,897 |
| Accrued liabilities | 645 |
| | 7,778 |
| | 8,235 |
| | 26,697 |
| | — |
| | 43,355 |
| Taxes other than income tax | 189 |
| | 4,128 |
| | 4,345 |
| | 4,937 |
| | — |
| | 13,599 |
| Income tax payable | — |
| | 1,708 |
| | 12 |
| | 4,437 |
| | — |
| | 6,157 |
| Intercompany payable | 505,634 |
| | — |
| | 894,589 |
| | 174,639 |
| | (1,574,862 | ) | | — |
| Total current liabilities | 506,468 |
| | 148,411 |
| | 914,651 |
| | 278,122 |
| | (1,574,862 | ) | | 272,790 |
| Long-term debt | — |
| | 3,077,717 |
| | — |
| | 47,933 |
| | — |
| | 3,125,650 |
| Deferred income tax liability | — |
| | 1,143 |
| | 36 |
| | 25,841 |
| | (1,179 | ) | | 25,841 |
| Other long-term liabilities | — |
| | 48,194 |
| | 7,460 |
| | 57,962 |
| | — |
| | 113,616 |
| Total partners’ equity | 1,661,224 |
| | 700,414 |
| | 909,791 |
| | 2,463,702 |
| | (4,177,479 | ) | | 1,557,652 |
| Total liabilities and partners’ equity | $ | 2,167,692 |
| | $ | 3,975,879 |
| | $ | 1,831,938 |
| | $ | 2,873,560 |
| | $ | (5,753,520 | ) | | $ | 5,095,549 |
|
Condensed Consolidating Balance Sheets December 31, 2015 (Thousands of Dollars) | | | | | | | | | | | | | | | | | | | | | | | | | | NuStar Energy | | NuStar Logistics | | NuPOP | | Non-Guarantor Subsidiaries | | Eliminations | | Consolidated | Assets | | | | | | | | | | | | Cash and cash equivalents | $ | 885 |
| | $ | 4 |
| | $ | — |
| | $ | 117,973 |
| | $ | — |
| | $ | 118,862 |
| Receivables, net | — |
| | 419 |
| | — |
| | 144,645 |
| | — |
| | 145,064 |
| Inventories | — |
| | 1,776 |
| | 3,648 |
| | 33,325 |
| | — |
| | 38,749 |
| Other current assets | 140 |
| | 11,026 |
| | 497 |
| | 19,513 |
| | — |
| | 31,176 |
| Intercompany receivable | — |
| | 1,610,370 |
| | — |
| | — |
| | (1,610,370 | ) | | — |
| Total current assets | 1,025 |
| | 1,623,595 |
| | 4,145 |
| | 315,456 |
| | (1,610,370 | ) | | 333,851 |
| Property, plant and equipment, net | — |
| | 1,915,370 |
| | 570,415 |
| | 1,197,786 |
| | — |
| | 3,683,571 |
| Intangible assets, net | — |
| | 48,961 |
| | — |
| | 63,050 |
| | — |
| | 112,011 |
| Goodwill | — |
| | 149,453 |
| | 170,652 |
| | 376,532 |
| | — |
| | 696,637 |
| Investment in wholly owned subsidiaries | 2,205,904 |
| | 48,547 |
| | 1,031,162 |
| | 915,115 |
| | (4,200,728 | ) | | — |
| Deferred income tax asset | — |
| | — |
| | — |
| | 4,037 |
| | (1,179 | ) | | 2,858 |
| Other long-term assets, net | 933 |
| | 255,957 |
| | 26,329 |
| | 13,378 |
| | — |
| | 296,597 |
| Total assets | $ | 2,207,862 |
| | $ | 4,041,883 |
| | $ | 1,802,703 |
| | $ | 2,885,354 |
| | $ | (5,812,277 | ) | | $ | 5,125,525 |
| Liabilities and Partners’ Equity | | | | | | | | | | | | Payables | $ | 12 |
| | $ | 52,650 |
| | $ | 11,193 |
| | $ | 76,091 |
| | $ | — |
| | $ | 139,946 |
| Short-term debt | — |
| | 84,000 |
| | — |
| | — |
| | — |
| | 84,000 |
| Accrued interest payable | — |
| | 34,271 |
| | — |
| | 15 |
| | — |
| | 34,286 |
| Accrued liabilities | 723 |
| | 32,816 |
| | 5,753 |
| | 15,902 |
| | — |
| | 55,194 |
| Taxes other than income tax | 126 |
| | 6,452 |
| | 3,325 |
| | 2,907 |
| | — |
| | 12,810 |
| Income tax payable | — |
| | 1,362 |
| | 9 |
| | 4,606 |
| | — |
| | 5,977 |
| Intercompany payable | 508,363 |
| | — |
| | 858,018 |
| | 243,989 |
| | (1,610,370 | ) | | — |
| Total current liabilities | 509,224 |
| | 211,551 |
| | 878,298 |
| | 343,510 |
| | (1,610,370 | ) | | 332,213 |
| Long-term debt | — |
| | 3,002,743 |
| | — |
| | 52,869 |
| | — |
| | 3,055,612 |
| Long-term payable to related party | — |
| | 26,638 |
| | — |
| | 5,442 |
| | — |
| | 32,080 |
| Deferred income tax liability | — |
| | 1,143 |
| | 36 |
| | 24,810 |
| | (1,179 | ) | | 24,810 |
| Other long-term liabilities | — |
| | 37,209 |
| | 9,294 |
| | 24,463 |
| | — |
| | 70,966 |
| Total partners’ equity | 1,698,638 |
| | 762,599 |
| | 915,075 |
| | 2,434,260 |
| | (4,200,728 | ) | | 1,609,844 |
| Total liabilities and partners’ equity | $ | 2,207,862 |
| | $ | 4,041,883 |
| | $ | 1,802,703 |
| | $ | 2,885,354 |
| | $ | (5,812,277 | ) | | $ | 5,125,525 |
|
Condensed Consolidating Statements of Comprehensive Income For the Three Months Ended March 31, 2016 (Thousands of Dollars) | | | | | | | | | | | | | | | | | | | | | | | | | | NuStar Energy | | NuStar Logistics | | NuPOP | | Non-Guarantor Subsidiaries | | Eliminations | | Consolidated | Revenues | $ | — |
| | $ | 126,578 |
| | $ | 47,985 |
| | $ | 231,476 |
| | $ | (336 | ) | | $ | 405,703 |
| Costs and expenses | 518 |
| | 68,891 |
| | 31,015 |
| | 211,050 |
| | (336 | ) | | 311,138 |
| Operating (loss) income | (518 | ) | | 57,687 |
| | 16,970 |
| | 20,426 |
| | — |
| | 94,565 |
| Equity in earnings (loss) of subsidiaries | 57,922 |
| | (3,115 | ) | | 25,283 |
| | 43,743 |
| | (123,833 | ) | | — |
| Interest (expense) income, net | — |
| | (39,632 | ) | | 1,508 |
| | 8,352 |
| | (4,351 | ) | | (34,123 | ) | Other income (expense), net | — |
| | 1 |
| | (17 | ) | | (155 | ) | | — |
| | (171 | ) | Income before income tax expense | 57,404 |
| | 14,941 |
| | 43,744 |
| | 72,366 |
| | (128,184 | ) | | 60,271 |
| Income tax expense | 3 |
| | 346 |
| | 2 |
| | 2,519 |
| | — |
| | 2,870 |
| Net income | $ | 57,401 |
| | $ | 14,595 |
| | $ | 43,742 |
| | $ | 69,847 |
| | $ | (128,184 | ) | | $ | 57,401 |
| | | | | | | | | | | | | Comprehensive income (loss) | $ | 57,401 |
| | $ | (13,161 | ) | | $ | 43,742 |
| | $ | 82,825 |
| | $ | (128,184 | ) | | $ | 42,623 |
|
Condensed Consolidating Statements of Comprehensive Income For the Three Months Ended March 31, 2015 (Thousands of Dollars) | | | | | | | | | | | | | | | | | | | | | | | | | | NuStar Energy | | NuStar Logistics | | NuPOP | | Non-Guarantor Subsidiaries | | Eliminations | | Consolidated | Revenues | $ | — |
| | $ | 134,036 |
| | $ | 52,574 |
| | $ | 368,661 |
| | $ | (327 | ) | | $ | 554,944 |
| Costs and expenses | 490 |
| | 72,906 |
| | 33,124 |
| | 349,512 |
| | (369 | ) | | 455,663 |
| Operating (loss) income | (490 | ) | | 61,130 |
| | 19,450 |
| | 19,149 |
| | 42 |
| | 99,281 |
| Equity in earnings (loss) of subsidiaries | 128,389 |
| | (4,164 | ) | | 81,699 |
| | 101,273 |
| | (307,197 | ) | | — |
| Interest (expense) income, net | — |
| | (32,174 | ) | | 119 |
| | 18 |
| | — |
| | (32,037 | ) | Other income, net | — |
| | 1,340 |
| | 2 |
| | 60,926 |
| | — |
| | 62,268 |
| Income from continuing operations before income tax (benefit) expense | 127,899 |
| | 26,132 |
| | 101,270 |
| | 181,366 |
| | (307,155 | ) | | 129,512 |
| Income tax (benefit) expense | — |
| | (1,026 | ) | | — |
| | 3,413 |
| | — |
| | 2,387 |
| Income from continuing operations | 127,899 |
| | 27,158 |
| | 101,270 |
| | 177,953 |
| | (307,155 | ) | | 127,125 |
| Income from discontinued operations, net of tax | — |
| | — |
| | — |
| | 774 |
| | — |
| | 774 |
| Net income | $ | 127,899 |
| | $ | 27,158 |
| | $ | 101,270 |
| | $ | 178,727 |
| | $ | (307,155 | ) | | $ | 127,899 |
| | | | | | | | | | | | | Comprehensive income | $ | 127,899 |
| | $ | 27,661 |
| | $ | 101,270 |
| | $ | 158,123 |
| | $ | (307,155 | ) | | $ | 107,798 |
|
Condensed Consolidating Statements of Cash Flows For the Three Months Ended March 31, 2016 (Thousands of Dollars) | | | | | | | | | | | | | | | | | | | | | | | | | | NuStar Energy | | NuStar Logistics | | NuPOP | | Non-Guarantor Subsidiaries | | Eliminations | | Consolidated | Net cash provided by operating activities | $ | 97,539 |
| | $ | 7,958 |
| | $ | 18,028 |
| | $ | 129,635 |
| | $ | (151,433 | ) | | $ | 101,727 |
| Cash flows from investing activities: | | | | | | | | | | | | Capital expenditures | — |
| | (28,899 | ) | | (5,442 | ) | | (11,835 | ) | | — |
| | (46,176 | ) | Change in accounts payable related to capital expenditures | — |
| | (7,637 | ) | | (74 | ) | | (4,952 | ) | | — |
| | (12,663 | ) | Net cash used in investing activities | — |
| | (36,536 | ) | | (5,516 | ) | | (16,787 | ) | | — |
| | (58,839 | ) | Cash flows from financing activities: | | | | | | | | | | | | Debt borrowings | — |
| | 296,089 |
| | — |
| | 6,000 |
| | — |
| | 302,089 |
| Debt repayments | — |
| | (219,709 | ) | | — |
| | (11,000 | ) | | — |
| | (230,709 | ) | Distributions to unitholders and general partner | (98,051 | ) | | (49,026 | ) | | (49,025 | ) | | (49,031 | ) | | 147,082 |
| | (98,051 | ) | Net intercompany activity | 507 |
| | 2,998 |
| | 36,513 |
| | (44,369 | ) | | 4,351 |
| | — |
| Other, net | (1 | ) | | (1,774 | ) | | — |
| | (7,029 | ) | | — |
| | (8,804 | ) | Net cash (used in) provided by financing activities | (97,545 | ) | | 28,578 |
| | (12,512 | ) | | (105,429 | ) | | 151,433 |
| | (35,475 | ) | Effect of foreign exchange rate changes on cash | — |
| | — |
| | — |
| | 4,642 |
| | — |
| | 4,642 |
| Net (decrease) increase in cash and cash equivalents | (6 | ) | | — |
| | — |
| | 12,061 |
| | — |
| | 12,055 |
| Cash and cash equivalents as of the beginning of the period | 885 |
| | 4 |
| | — |
| | 117,973 |
| | — |
| | 118,862 |
| Cash and cash equivalents as of the end of the period | $ | 879 |
| | $ | 4 |
| | $ | — |
| | $ | 130,034 |
| | $ | — |
| | $ | 130,917 |
|
Condensed Consolidating Statements of Cash Flows For the Three Months Ended March 31, 2015 (Thousands of Dollars) | | | | | | | | | | | | | | | | | | | | | | | | | | NuStar Energy | | NuStar Logistics | | NuPOP | | Non-Guarantor Subsidiaries | | Eliminations | | Consolidated | Net cash provided by operating activities | $ | 97,235 |
| | $ | 40,425 |
| | $ | 35,918 |
| | $ | 96,086 |
| | $ | (147,082 | ) | | $ | 122,582 |
| Cash flows from investing activities: | | | | | | | | | | | | Capital expenditures | — |
| | (58,476 | ) | | (4,651 | ) | | (9,753 | ) | | — |
| | (72,880 | ) | Change in accounts payable related to capital expenditures | — |
| | (8,554 | ) | | (516 | ) | | (4,394 | ) | | — |
| | (13,464 | ) | Acquisitions | — |
| | — |
| | — |
| | (142,500 | ) | | — |
| | (142,500 | ) | Investment in other long-term assets | — |
| | — |
| | — |
| | (2,177 | ) | | — |
| | (2,177 | ) | Proceeds from sale or disposition of assets | — |
| | 9 |
| | 4 |
| | 1,172 |
| | — |
| | 1,185 |
| Net cash used in investing activities | — |
| | (67,021 | ) | | (5,163 | ) | | (157,652 | ) | | — |
| | (229,836 | ) | Cash flows from financing activities: | | | | | | | | | | | | Debt borrowings | — |
| | 493,532 |
| | — |
| | — |
| | — |
| | 493,532 |
| Debt repayments | — |
| | (277,166 | ) | | — |
| | — |
| | — |
| | (277,166 | ) | Distributions to unitholders and general partner | (98,051 | ) | | (49,025 | ) | | (49,026 | ) | | (49,031 | ) | | 147,082 |
| | (98,051 | ) | Net intercompany activity | 816 |
| | (134,700 | ) | | 18,271 |
| | 115,613 |
| | — |
| | — |
| Other, net | — |
| | (6,045 | ) | | — |
| | (8,259 | ) | | — |
| | (14,304 | ) | Net cash (used in) provided by financing activities | (97,235 | ) | | 26,596 |
| | (30,755 | ) | | 58,323 |
| | 147,082 |
| | 104,011 |
| Effect of foreign exchange rate changes on cash | — |
| | — |
| | — |
| | (6,486 | ) | | — |
| | (6,486 | ) | Net decrease in cash and cash equivalents | — |
| | — |
| | — |
| | (9,729 | ) | | — |
| | (9,729 | ) | Cash and cash equivalents as of the beginning of the period | 923 |
| | 6 |
| | — |
| | 86,983 |
| | — |
| | 87,912 |
| Cash and cash equivalents as of the end of the period | $ | 923 |
| | $ | 6 |
| | $ | — |
| | $ | 77,254 |
| | $ | — |
| | $ | 78,183 |
|
|