CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables)

Condensed Consolidating Balance Sheets

June 30, 2018

(Thousands of Dollars)



	NuStar Energy		NuStar Logistics		NuPOP		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	896	$	1,777	$	—	$	17,671	$	—		$	20,344
Receivables, net	204		61		—		141,886		—			142,151
Inventories	—		1,913		8,408		17,750		—			28,071
Other current assets	78		16,119		1,838		8,491		—			26,526
Intercompany receivable	56,954		2,825,858		—		—		(2,882,812		)	—
Total current assets	58,132		2,845,728		10,246		185,798		(2,882,812		)	217,092
Property, plant and equipment, net	—		1,857,862		622,399		1,979,420		—			4,459,681
Intangible assets, net	—		53,819		—		704,948		—			758,767
Goodwill	—		149,453		170,652		774,556		—			1,094,661
Investment in wholly owned subsidiaries	2,837,072		20,557		1,436,981		861,102		(5,155,712		)	—
Other long-term assets, net	3,391		73,591		26,944		12,842		—			116,768
Total assets	$	2,898,595	$	5,001,010	$	2,267,222	$	4,518,666	$	(8,038,524	)	$	6,646,969
Liabilities, Mezzanine Equity and Partners’ Equity
Accounts payable	$	4,169	$	25,949	$	6,810	$	90,873	$	—		$	127,801
Short-term debt	—		63,000		—		—		—			63,000
Accrued interest payable	—		36,144		—		48		—			36,192
Accrued liabilities	608		21,666		8,016		34,429		—			64,719
Taxes other than income tax	6		5,368		4,828		6,018		—			16,220
Income tax payable	—		231		—		3,126		—			3,357
Intercompany payable	—		—		1,372,863		1,509,949		(2,882,812		)	—
Total current liabilities	4,783		152,358		1,392,517		1,644,443		(2,882,812		)	311,289
Long-term debt, less current portion	—		3,324,389		—		55,977		—			3,380,366
Deferred income tax liability	—		1,262		12		21,839		—			23,113
Other long-term liabilities	—		44,622		13,793		46,598		—			105,013
Series D preferred units	370,711		—		—		—		—			370,711
Total partners’ equity	2,523,101		1,478,379		860,900		2,749,809		(5,155,712		)	2,456,477
Total liabilities, mezzanine equity and partners’ equity	$	2,898,595	$	5,001,010	$	2,267,222	$	4,518,666	$	(8,038,524	)	$	6,646,969

Condensed Consolidating Balance Sheets

December 31, 2017

(Thousands of Dollars)



	NuStar Energy		NuStar Logistics		NuPOP		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	885	$	29	$	—	$	23,378	$	—		$	24,292
Receivables, net	—		280		—		176,495		—			176,775
Inventories	—		1,686		8,611		16,560		—			26,857
Other current assets	61		11,412		4,191		6,844		—			22,508
Intercompany receivable	—		3,112,164		—		—		(3,112,164		)	—
Total current assets	946		3,125,571		12,802		223,277		(3,112,164		)	250,432
Property, plant and equipment, net	—		1,893,720		591,070		1,816,143		—			4,300,933
Intangible assets, net	—		58,530		—		725,949		—			784,479
Goodwill	—		149,453		170,652		777,370		—			1,097,475
Investment in wholly owned subsidiaries	2,891,371		24,162		1,301,717		790,882		(5,008,132		)	—
Deferred income tax asset	—		—		—		233		—			233
Other long-term assets, net	303		65,684		27,493		8,201		—			101,681
Total assets	$	2,892,620	$	5,317,120	$	2,103,734	$	4,342,055	$	(8,120,296	)	$	6,535,233
Liabilities and Partners’ Equity
Accounts payable	$	4,078	$	27,642	$	13,160	$	101,052	$	—		$	145,932
Short-term debt	—		35,000		—		—		—			35,000
Current portion of long-term debt	—		349,990		—		—		—			349,990
Accrued interest payable	—		40,402		—		47		—			40,449
Accrued liabilities	1,105		17,628		9,450		33,395		—			61,578
Taxes other than income tax	125		7,110		3,794		3,356		—			14,385
Income tax payable	—		732		4		3,436		—			4,172
Intercompany payable	322,296		—		1,277,691		1,512,177		(3,112,164		)	—
Total current liabilities	327,604		478,504		1,304,099		1,653,463		(3,112,164		)	651,506
Long-term debt, less current portion	—		3,201,220		—		61,849		—			3,263,069
Deferred income tax liability	—		1,262		12		20,998		—			22,272
Other long-term liabilities	—		58,806		8,861		50,630		—			118,297
Total partners’ equity	2,565,016		1,577,328		790,762		2,555,115		(5,008,132		)	2,480,089
Total liabilities and partners’ equity	$	2,892,620	$	5,317,120	$	2,103,734	$	4,342,055	$	(8,120,296	)	$	6,535,233

Condensed Consolidating Statements of Comprehensive Income

For the Three Months Ended June 30, 2018

(Thousands of Dollars)



	NuStar Energy			NuStar Logistics			NuPOP			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	117,862		$	66,505		$	301,984		$	(147	)	$	486,204
Costs and expenses	538			86,588			42,324			277,063			(147		)	406,366
Operating (loss) income	(538		)	31,274			24,181			24,921			—			79,838
Equity in earnings of subsidiaries	29,900			1,692			23,145			45,673			(100,410		)	—
Interest income (expense), net	37			(50,357		)	(1,724		)	3,108			—			(48,936		)
Other income (expense), net	—			1,848			73			(509		)	—			1,412
Income (loss) before income tax expense	29,399			(15,543		)	45,675			73,193			(100,410		)	32,314
Income tax expense	—			61			—			2,854			—			2,915
Net income (loss)	$	29,399		$	(15,604	)	$	45,675		$	70,339		$	(100,410	)	$	29,399

Comprehensive income (loss)	$	29,399		$	(9,336	)	$	45,675		$	61,450		$	(100,410	)	$	26,778

Condensed Consolidating Statements of Comprehensive Income

For the Three Months Ended June 30, 2017

(Thousands of Dollars)



	NuStar Energy			NuStar Logistics			NuPOP			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Revenues	$	—		$	128,895		$	50,577		$	256,363	$	(347	)	$	435,488
Costs and expenses	486			83,096			37,781			241,068		(347		)	362,084
Operating (loss) income	(486		)	45,799			12,796			15,295		—			73,404
Equity in earnings (loss) of subsidiaries	26,732			(7,177		)	22,746			34,141		(76,442		)	—
Interest income (expense), net	4			(46,390		)	(1,401		)	2,175		—			(45,612		)
Other income, net	—			62			3			23		—			88
Income (loss) before income tax (benefit) expense	26,250			(7,706		)	34,144			51,634		(76,442		)	27,880
Income tax (benefit) expense	—			(365		)	1			1,994		—			1,630
Net income (loss)	$	26,250		$	(7,341	)	$	34,143		$	49,640	$	(76,442	)	$	26,250

Comprehensive income (loss)	$	26,250		$	(13,592	)	$	34,143		$	57,022	$	(76,442	)	$	27,381

Condensed Consolidating Statements of Comprehensive Income

For the Six Months Ended June 30, 2018

(Thousands of Dollars)



	NuStar Energy			NuStar Logistics			NuPOP			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Revenues	$	—		$	237,556		$	122,779		$	602,099	$	(349	)	$	962,085
Costs and expenses	1,150			159,004			77,505			546,457		(349		)	783,767
Operating (loss) income	(1,150		)	78,552			45,274			55,642		—			178,318
Equity in earnings (loss) of subsidiaries	156,613			(557		)	135,148			177,312		(468,516		)	—
Interest income (expense), net	69			(100,383		)	(3,295		)	6,901		—			(96,708		)
Other income, net	—			2,324			188			78,652		—			81,164
Income (loss) before income tax expense	155,532			(20,064		)	177,315			318,507		(468,516		)	162,774
Income tax expense	—			231			1			7,010		—			7,242
Net income (loss)	$	155,532		$	(20,295	)	$	177,314		$	311,497	$	(468,516	)	$	155,532

Comprehensive income	$	155,532		$	4,784		$	177,314		$	304,721	$	(468,516	)	$	173,835

Condensed Consolidating Statements of Comprehensive Income

For the Six Months Ended June 30, 2017

(Thousands of Dollars)



	NuStar Energy			NuStar Logistics			NuPOP			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Revenues	$	—		$	252,524		$	102,818		$	568,210	$	(634	)	$	922,918
Costs and expenses	995			159,418			67,587			525,009		(634		)	752,375
Operating (loss) income	(995		)	93,106			35,231			43,201		—			170,543
Equity in earnings (loss) of subsidiaries	85,177			(6,067		)	48,961			81,494		(209,565		)	—
Interest income (expense), net	8			(83,304		)	(2,705		)	3,975		—			(82,026		)
Other income, net	—			83			9			136		—			228
Income before income tax (benefit) expense	84,190			3,818			81,496			128,806		(209,565		)	88,745
Income tax (benefit) expense	—			(34		)	2			4,587		—			4,555
Net income	$	84,190		$	3,852		$	81,494		$	124,219	$	(209,565	)	$	84,190

Comprehensive income (loss)	$	84,190		$	(561	)	$	81,494		$	133,526	$	(209,565	)	$	89,084

Condensed Consolidating Statements of Cash Flows

For the Six Months Ended June 30, 2018

(Thousands of Dollars)



	NuStar Energy			NuStar Logistics			NuPOP			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by operating activities	$	200,803		$	31,209		$	58,105		$	261,300		$	(307,567	)	$	243,850
Cash flows from investing activities:
Capital expenditures	—			(17,136		)	(8,164		)	(223,221		)	—			(248,521		)
Change in accounts payable related to capital expenditures	—			495			(5,173		)	(14,642		)	—			(19,320		)
Proceeds from sale or disposition of assets	—			1,385			16			696			—			2,097
Proceeds from insurance recoveries	—			—			—			78,419			—			78,419
Acquisitions	—			—			(37,502		)	—			—			(37,502		)
Net cash used in investing activities	—			(15,256		)	(50,823		)	(158,748		)	—			(224,827		)
Cash flows from financing activities:
Debt borrowings	—			1,122,272			—			11,000			—			1,133,272
Debt repayments	—			(1,316,621		)	—			(16,900		)	—			(1,333,521		)
Issuance of Series D preferred units	400,000			—			—			—			—			400,000
Payment of issuance costs for Series D preferred units	(29,289		)	—			—			—			—			(29,289		)
Issuance of common units	10,000			—			—			—			—			10,000
Distributions to preferred unitholders	(32,713		)	(16,356		)	(16,357		)	(16,358		)	49,071			(32,713		)
Distributions to common unitholders and general partner	(172,324		)	(86,162		)	(86,162		)	(86,172		)	258,496			(172,324		)
Proceeds from termination of interest rate swaps	—			8,048			—			—			—			8,048
Net intercompany activity	(374,973		)	279,080			95,237			656			—			—
Other, net	(1,493		)	(4,466		)	—			(64		)	—			(6,023		)
Net cash used in financing activities	(200,792		)	(14,205		)	(7,282		)	(107,838		)	307,567			(22,550		)
Effect of foreign exchange rate changes on cash	—			—			—			(421		)	—			(421		)
Net increase (decrease) in cash and cash equivalents	11			1,748			—			(5,707		)	—			(3,948		)
Cash and cash equivalents as of the beginning of the period	885			29			—			23,378			—			24,292
Cash and cash equivalents as of the end of the period	$	896		$	1,777		$	—		$	17,671		$	—		$	20,344

Condensed Consolidating Statements of Cash Flows

For the Six Months Ended June 30, 2017

(Thousands of Dollars)



	NuStar Energy			NuStar Logistics			NuPOP			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by operating activities	$	225,566		$	85,203		$	45,790		$	192,692		$	(340,263	)	$	208,988
Cash flows from investing activities:
Capital expenditures	—			(19,639		)	(5,588		)	(83,622		)	—			(108,849		)
Change in accounts payable related to capital expenditures	—			(2,823		)	(35		)	9,709			—			6,851
Proceeds from sale or disposition of assets	—			1,898			12			56			—			1,966
Investment in subsidiaries	(1,262,000		)	—			—			(126		)	1,262,126			—
Proceeds from Axeon term loan	—			110,000			—			—			—			110,000
Acquisitions	—			—			—			(1,476,719		)	—			(1,476,719		)
Net cash (used in) provided by investing activities	(1,262,000		)	89,436			(5,611		)	(1,550,702		)	1,262,126			(1,466,751		)
Cash flows from financing activities:
Debt borrowings	—			1,536,761			—			65,400			—			1,602,161
Debt repayments	—			(1,625,739		)	—			(70,500		)	—			(1,696,239		)
Note offering, net of issuance costs	—			543,313			—			—			—			543,313
Issuance of other preferred units, net of issuance costs	371,802			—			—			—			—			371,802
Issuance of common units, net of issuance costs	643,858			—			—			—			—			643,858
General partner contribution	13,597			—			—			—			—			13,597
Distributions to preferred unitholders	(10,696		)	(5,348		)	(5,348		)	(5,348		)	16,044			(10,696		)
Distributions to common unitholders and general partner	(216,139		)	(108,070		)	(108,069		)	(108,080		)	324,219			(216,139		)
Contributions from affiliates	—			1,262,000			—			126			(1,262,126		)	—
Net intercompany activity	236,622			(1,778,816		)	73,237			1,468,957			—			—
Other, net	(2,613		)	1,319			1			(1		)	—			(1,294		)
Net cash provided by (used) in financing activities	1,036,431			(174,580		)	(40,179		)	1,350,554			(921,863		)	1,250,363
Effect of foreign exchange rate changes on cash	—			—			—			649			—			649
Net (decrease) increase in cash and cash equivalents	(3		)	59			—			(6,807		)	—			(6,751		)
Cash and cash equivalents as of the beginning of the period	870			5			—			35,067			—			35,942
Cash and cash equivalents as of the end of the period	$	867		$	64		$	—		$	28,260		$	—		$	29,191