| CONDENSED CONSOLIDATING FINANCIAL STATEMENTS |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS
NuStar Energy has no operations, and its assets consist mainly of its investments in 100% indirectly owned subsidiaries, NuStar Logistics and NuPOP. 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, 2020 (Thousands of Dollars) | | | | | | | | | | | | | | | | | | | | | | | | | | NuStar Energy | | NuStar Logistics | | NuPOP | | Non-Guarantor Subsidiaries | | Eliminations | | Consolidated | Assets | | | | | | | | | | | | Cash and cash equivalents | $ | 251 |
| | $ | 1,666 |
| | $ | — |
| | $ | 15,777 |
| | $ | — |
| | $ | 17,694 |
| Receivables, net | — |
| | 29 |
| | — |
| | 149,142 |
| | (4,504 | ) | | 144,667 |
| Inventories | — |
| | 2,033 |
| | 4,919 |
| | 3,768 |
| | — |
| | 10,720 |
| Prepaid and other current assets | 216 |
| | 10,331 |
| | 634 |
| | 3,594 |
| | — |
| | 14,775 |
| Intercompany receivable | — |
| | 1,284,697 |
| | — |
| | 374,851 |
| | (1,659,548 | ) | | — |
| Total current assets | 467 |
| | 1,298,756 |
| | 5,553 |
| | 547,132 |
| | (1,664,052 | ) | | 187,856 |
| Property, plant and equipment, net | — |
| | 2,045,134 |
| | 605,311 |
| | 1,455,196 |
| | — |
| | 4,105,641 |
| Intangible assets, net | — |
| | 37,327 |
| | — |
| | 631,449 |
| | — |
| | 668,776 |
| Goodwill | — |
| | 50,453 |
| | 170,652 |
| | 559,748 |
| | — |
| | 780,853 |
| Investment in wholly owned subsidiaries | 2,628,960 |
| | 1,624,851 |
| | 942,556 |
| | 484,606 |
| | (5,680,973 | ) | | — |
| Other long-term assets, net | 103 |
| | 70,845 |
| | 32,329 |
| | 31,417 |
| | — |
| | 134,694 |
| Total assets | $ | 2,629,530 |
| | $ | 5,127,366 |
| | $ | 1,756,401 |
| | $ | 3,709,548 |
| | $ | (7,345,025 | ) | | $ | 5,877,820 |
| Liabilities, Mezzanine Equity and Partners’ Equity | | | | | | | | | | | | Accounts payable | $ | 5,817 |
| | $ | 22,459 |
| | $ | 6,300 |
| | $ | 39,456 |
| | $ | — |
| | $ | 74,032 |
| Short-term debt and current portion of finance leases | — |
| | 14,366 |
| | 426 |
| | 77 |
| | — |
| | 14,869 |
| Accrued interest payable | — |
| | 40,569 |
| | 6 |
| | 30 |
| | — |
| | 40,605 |
| Accrued liabilities | 1,054 |
| | 71,282 |
| | 8,266 |
| | 23,575 |
| | — |
| | 104,177 |
| Taxes other than income tax | — |
| | 4,531 |
| | 6,337 |
| | 2,365 |
| | (4,504 | ) | | 8,729 |
| Income tax payable | — |
| | 621 |
| | 2 |
| | 4,827 |
| | — |
| | 5,450 |
| Intercompany payable | 423,799 |
| | — |
| | 1,235,749 |
| | — |
| | (1,659,548 | ) | | — |
| Total current liabilities | 430,670 |
| | 153,828 |
| | 1,257,086 |
| | 70,330 |
| | (1,664,052 | ) | | 247,862 |
| Long-term debt, less current portion | — |
| | 3,305,258 |
| | 1,688 |
| | 67,801 |
| | — |
| | 3,374,747 |
| Deferred income tax liability | — |
| | 1,499 |
| | 10 |
| | 9,164 |
| | — |
| | 10,673 |
| Other long-term liabilities | — |
| | 63,851 |
| | 13,128 |
| | 72,908 |
| | — |
| | 149,887 |
| Series D preferred units | 586,837 |
| | — |
| | — |
| | — |
| | — |
| | 586,837 |
| Total partners’ equity | 1,612,023 |
| | 1,602,930 |
| | 484,489 |
| | 3,489,345 |
| | (5,680,973 | ) | | 1,507,814 |
| Total liabilities, mezzanine equity and partners’ equity | $ | 2,629,530 |
| | $ | 5,127,366 |
| | $ | 1,756,401 |
| | $ | 3,709,548 |
| | $ | (7,345,025 | ) | | $ | 5,877,820 |
|
Condensed Consolidating Balance Sheets December 31, 2019 (Thousands of Dollars) | | | | | | | | | | | | | | | | | | | | | | | | | | NuStar Energy | | NuStar Logistics | | NuPOP | | Non-Guarantor Subsidiaries | | Eliminations | | Consolidated | Assets | | | | | | | | | | | | Cash and cash equivalents | $ | 176 |
| | $ | 24 |
| | $ | — |
| | $ | 15,992 |
| | $ | — |
| | $ | 16,192 |
| Receivables, net | — |
| | 317 |
| | 4 |
| | 152,209 |
| | — |
| | 152,530 |
| Inventories | — |
| | 1,953 |
| | 4,821 |
| | 5,619 |
| | — |
| | 12,393 |
| Prepaid and other current assets | 61 |
| | 16,325 |
| | 600 |
| | 4,947 |
| | — |
| | 21,933 |
| Intercompany receivable | — |
| | 1,276,839 |
| | — |
| | 610,298 |
| | (1,887,137 | ) | | — |
| Total current assets | 237 |
| | 1,295,458 |
| | 5,425 |
| | 789,065 |
| | (1,887,137 | ) | | 203,048 |
| Property, plant and equipment, net | — |
| | 2,058,530 |
| | 612,128 |
| | 1,448,321 |
| | — |
| | 4,118,979 |
| Intangible assets, net | — |
| | 39,683 |
| | — |
| | 641,949 |
| | — |
| | 681,632 |
| Goodwill | — |
| | 149,453 |
| | 170,652 |
| | 685,748 |
| | — |
| | 1,005,853 |
| Investment in wholly owned subsidiaries | 2,871,540 |
| | 1,743,066 |
| | 1,155,855 |
| | 490,826 |
| | (6,261,287 | ) | | — |
| Other long-term assets, net | 98 |
| | 111,362 |
| | 32,121 |
| | 32,899 |
| | — |
| | 176,480 |
| Total assets | $ | 2,871,875 |
| | $ | 5,397,552 |
| | $ | 1,976,181 |
| | $ | 4,088,808 |
| | $ | (8,148,424 | ) | | $ | 6,185,992 |
| Liabilities, Mezzanine Equity and Partners’ Equity | | | | | | | | | | | | Accounts payable | $ | 5,427 |
| | $ | 42,064 |
| | $ | 8,379 |
| | $ | 53,964 |
| | $ | — |
| | $ | 109,834 |
| Short-term debt and current portion of finance leases | — |
| | 9,722 |
| | 299 |
| | 25 |
| | — |
| | 10,046 |
| Current portion of long-term debt | — |
| | 452,367 |
| | — |
| | — |
| | — |
| | 452,367 |
| Accrued interest payable | — |
| | 37,888 |
| | 4 |
| | 33 |
| | — |
| | 37,925 |
| Accrued liabilities | 1,425 |
| | 40,514 |
| | 8,461 |
| | 53,885 |
| | — |
| | 104,285 |
| Taxes other than income tax | 125 |
| | 7,311 |
| | 5,160 |
| | 185 |
| | — |
| | 12,781 |
| Income tax payable | — |
| | 492 |
| | 2 |
| | 3,831 |
| | — |
| | 4,325 |
| Intercompany payable | 438,857 |
| | — |
| | 1,448,280 |
| | — |
| | (1,887,137 | ) | | — |
| Total current liabilities | 445,834 |
| | 590,358 |
| | 1,470,585 |
| | 111,923 |
| | (1,887,137 | ) | | 731,563 |
| Long-term debt, less current portion | — |
| | 2,871,786 |
| | 1,127 |
| | 62,005 |
| | — |
| | 2,934,918 |
| Deferred income tax liability | — |
| | 1,499 |
| | 10 |
| | 10,918 |
| | — |
| | 12,427 |
| Other long-term liabilities | — |
| | 65,577 |
| | 13,774 |
| | 69,588 |
| | — |
| | 148,939 |
| Series D preferred units | 581,935 |
| | — |
| | — |
| | — |
| | — |
| | 581,935 |
| Total partners’ equity | 1,844,106 |
| | 1,868,332 |
| | 490,685 |
| | 3,834,374 |
| | (6,261,287 | ) | | 1,776,210 |
| Total liabilities, mezzanine equity and partners’ equity | $ | 2,871,875 |
| | $ | 5,397,552 |
| | $ | 1,976,181 |
| | $ | 4,088,808 |
| | $ | (8,148,424 | ) | | $ | 6,185,992 |
|
Condensed Consolidating Statements of Comprehensive (Loss) Income For the Three Months Ended March 31, 2020 (Thousands of Dollars) | | | | | | | | | | | | | | | | | | | | | | | | | | NuStar Energy | | NuStar Logistics | | NuPOP | | Non-Guarantor Subsidiaries | | Eliminations | | Consolidated | Revenues | $ | — |
| | $ | 161,302 |
| | $ | 62,664 |
| | $ | 168,961 |
| | $ | (136 | ) | | $ | 392,791 |
| Costs and expenses | 728 |
| | 184,171 |
| | 37,779 |
| | 263,308 |
| | (136 | ) | | 485,850 |
| Operating (loss) income | (728 | ) | | (22,869 | ) | | 24,885 |
| | (94,347 | ) | | — |
| | (93,059 | ) | Equity in (loss) earnings of subsidiaries | (146,988 | ) | | (118,215 | ) | | 16,787 |
| | 41,579 |
| | 206,837 |
| | — |
| Interest income (expense), net | 75 |
| | (48,070 | ) | | (319 | ) | | 820 |
| | — |
| | (47,494 | ) | Other income (expense), net | — |
| | 859 |
| | 247 |
| | (7,595 | ) | | — |
| | (6,489 | ) | (Loss) income before income tax expense | (147,641 | ) | | (188,295 | ) | | 41,600 |
| | (59,543 | ) | | 206,837 |
| | (147,042 | ) | Income tax expense | — |
| | 129 |
| | — |
| | 470 |
| | — |
| | 599 |
| Net (loss) income | $ | (147,641 | ) | | $ | (188,424 | ) | | $ | 41,600 |
| | $ | (60,013 | ) | | $ | 206,837 |
| | $ | (147,641 | ) | | | | | | | | | | | | | Comprehensive (loss) income | $ | (147,641 | ) | | $ | (217,607 | ) | | $ | 41,600 |
| | $ | (67,143 | ) | | $ | 206,837 |
| | $ | (183,954 | ) |
Condensed Consolidating Statements of Comprehensive Loss For the Three Months Ended March 31, 2019 (Thousands of Dollars) | | | | | | | | | | | | | | | | | | | | | | | | | | NuStar Energy | | NuStar Logistics | | NuPOP | | Non-Guarantor Subsidiaries | | Eliminations | | Consolidated | Revenues | $ | — |
| | $ | 117,555 |
| | $ | 58,353 |
| | $ | 172,105 |
| | $ | (187 | ) | | $ | 347,826 |
| Costs and expenses | 676 |
| | 77,411 |
| | 36,050 |
| | 160,271 |
| | (187 | ) | | 274,221 |
| Operating (loss) income | (676 | ) | | 40,144 |
| | 22,303 |
| | 11,834 |
| | — |
| | 73,605 |
| Equity in earnings of subsidiaries | 29,491 |
| | 1,339 |
| | 12,738 |
| | 33,285 |
| | (76,853 | ) | | — |
| Interest income (expense), net | 108 |
| | (45,456 | ) | | (1,933 | ) | | 2,990 |
| | — |
| | (44,291 | ) | Other income (expense), net | — |
| | 754 |
| | 177 |
| | (140 | ) | | — |
| | 791 |
| Income (loss) from continuing operations before income tax expense | 28,923 |
| | (3,219 | ) | | 33,285 |
| | 47,969 |
| | (76,853 | ) | | 30,105 |
| Income tax expense | — |
| | 117 |
| | — |
| | 1,065 |
| | — |
| | 1,182 |
| Income (loss) from continuing operations | 28,923 |
| | (3,336 | ) | | 33,285 |
| | 46,904 |
| | (76,853 | ) | | 28,923 |
| Loss from discontinued
operations, net of tax (a) | (306,786 | ) | | — |
| | (306,786 | ) | | (613,572 | ) | | 920,358 |
| | (306,786 | ) | Net loss | $ | (277,863 | ) | | $ | (3,336 | ) | | $ | (273,501 | ) | | $ | (566,668 | ) | | $ | 843,505 |
| | $ | (277,863 | ) | | | | | | | | | | | | | Comprehensive loss | $ | (277,863 | ) | | $ | (9,066 | ) | | $ | (273,501 | ) | | $ | (565,764 | ) | | $ | 843,505 |
| | $ | (282,689 | ) |
(a) Includes equity in earnings (loss) of subsidiaries related to discontinued operations.
Condensed Consolidating Statements of Cash Flows For the Three Months Ended March 31, 2020 (Thousands of Dollars) | | | | | | | | | | | | | | | | | | | | | | | | | | NuStar Energy | | NuStar Logistics | | NuPOP | | Non-Guarantor Subsidiaries | | Eliminations | | Consolidated | Net cash provided by operating activities | $ | 94,676 |
| | $ | 64,365 |
| | $ | 265,236 |
| | $ | 100,630 |
| | $ | (373,479 | ) | | $ | 151,428 |
| Cash flows from investing activities: | | | | | | | | | | | | Capital expenditures | — |
| | (14,674 | ) | | (1,506 | ) | | (40,103 | ) | | — |
| | (56,283 | ) | Change in accounts payable related to capital expenditures | — |
| | (12,807 | ) | | (3,390 | ) | | 491 |
| | — |
| | (15,706 | ) | Proceeds from sale or disposition of assets | — |
| | 299 |
| | 48 |
| | 218 |
| | — |
| | 565 |
| Net cash used in investing activities | — |
| | (27,182 | ) | | (4,848 | ) | | (39,394 | ) | | — |
| | (71,424 | ) | Cash flows from financing activities: | | | | | | | | | | | | Debt borrowings | — |
| | 178,000 |
| | — |
| | 9,200 |
| | — |
| | 187,200 |
| Debt repayments | — |
| | (148,515 | ) | | — |
| | (3,600 | ) | | — |
| | (152,115 | ) | Distributions to preferred unitholders | (30,423 | ) | | (15,212 | ) | | (15,212 | ) | | (15,212 | ) | | 45,636 |
| | (30,423 | ) | Distributions to common unitholders | (65,169 | ) | | (32,584 | ) | | (32,584 | ) | | (32,589 | ) | | 97,757 |
| | (65,169 | ) | Distributions to affiliates | — |
| | — |
| | — |
| | (230,086 | ) | | 230,086 |
| | — |
| Net intercompany activity | 10,469 |
| | (10,246 | ) | | (212,484 | ) | | 212,261 |
| | — |
| | — |
| Payment of tax withholding for unit-based compensation | (8,820 | ) | | — |
| | — |
| | — |
| | — |
| | (8,820 | ) | Other, net | (658 | ) | | (6,974 | ) | | (108 | ) | | (22 | ) | | — |
| | (7,762 | ) | Net cash used in financing activities | (94,601 | ) | | (35,531 | ) | | (260,388 | ) | | (60,048 | ) | | 373,479 |
| | (77,089 | ) | Effect of foreign exchange rate changes on cash | — |
| | — |
| | — |
| | (1,403 | ) | | — |
| | (1,403 | ) | Net increase (decrease) in cash, cash equivalents and restricted cash | 75 |
| | 1,652 |
| | — |
| | (215 | ) | | — |
| | 1,512 |
| Cash, cash equivalents, and restricted cash as of the beginning of the period | 176 |
| | 8,812 |
| | — |
| | 15,992 |
| | — |
| | 24,980 |
| Cash, cash equivalents and restricted cash as of the end of the period | $ | 251 |
| | $ | 10,464 |
| | $ | — |
| | $ | 15,777 |
| | $ | — |
| | $ | 26,492 |
|
Condensed Consolidating Statements of Cash Flows For the Three Months Ended March 31, 2019 (Thousands of Dollars) | | | | | | | | | | | | | | | | | | | | | | | | | | NuStar Energy | | NuStar Logistics | | NuPOP | | Non-Guarantor Subsidiaries | | Eliminations | | Consolidated | Net cash provided by operating activities | $ | 93,209 |
| | $ | 26,732 |
| | $ | 11,953 |
| | $ | 113,864 |
| | $ | (142,190 | ) | | $ | 103,568 |
| Cash flows from investing activities: | | | | | | | | | | | | Capital expenditures | — |
| | (87,696 | ) | | (2,253 | ) | | (69,480 | ) | | — |
| | (159,429 | ) | Change in accounts payable related to capital expenditures | — |
| | 14,894 |
| | 15,532 |
| | (11,025 | ) | | — |
| | 19,401 |
| Proceeds from sale or disposition of assets | — |
| | 46 |
| | 1 |
| | 32 |
| | — |
| | 79 |
| Net cash (used in) provided by investing activities | — |
| | (72,756 | ) | | 13,280 |
| | (80,473 | ) | | — |
| | (139,949 | ) | Cash flows from financing activities: | | | | | | | | | | | | Debt borrowings | — |
| | 306,500 |
| | — |
| | 5,000 |
| | — |
| | 311,500 |
| Debt repayments | — |
| | (143,500 | ) | | — |
| | (14,600 | ) | | — |
| | (158,100 | ) | Distributions to preferred unitholders | (30,423 | ) | | (15,212 | ) | | (15,212 | ) | | (15,211 | ) | | 45,635 |
| | (30,423 | ) | Distributions to common unitholders | (64,367 | ) | | (32,183 | ) | | (32,183 | ) | | (32,189 | ) | | 96,555 |
| | (64,367 | ) | Net intercompany activity | 8,948 |
| | (55,453 | ) | | 22,164 |
| | 24,341 |
| | — |
| | — |
| Payment of tax withholding for unit-based compensation | (6,366 | ) | | — |
| | — |
| | — |
| | — |
| | (6,366 | ) | Other, net | (893 | ) | | (4,227 | ) | | (2 | ) | | (5 | ) | | — |
| | (5,127 | ) | Net cash (used in) provided by financing activities | (93,101 | ) | | 55,925 |
| | (25,233 | ) | | (32,664 | ) | | 142,190 |
| | 47,117 |
| Effect of foreign exchange rate changes on cash | — |
| | — |
| | — |
| | 154 |
| | — |
| | 154 |
| Net increase in cash, cash equivalents and restricted cash | 108 |
| | 9,901 |
| | — |
| | 881 |
| | — |
| | 10,890 |
| Cash, cash equivalents and restricted cash as of the beginning of the period | 1,255 |
| | 51 |
| | — |
| | 12,338 |
| | — |
| | 13,644 |
| Cash, cash equivalents and restricted cash as of the end of the period | $ | 1,363 |
| | $ | 9,952 |
| | $ | — |
| | $ | 13,219 |
| | $ | — |
| | $ | 24,534 |
|
|