NuStar Logistics LP, a fully owned affiliate of San
Antonio-based publicly traded partnership
NuStar Energy LP
), is set to offer senior notes. NuStar Energy will be the parent
guarantor of the notes while NuStar Pipeline Operating
Partnership LP, another subsidiary of NuStar Energy, will remain
the affiliate guarantor.
The net proceeds from the notes will be utilized for general
partnership issues which includes the settlement of part of the
outstanding debt under the revolving credit facility of NuStar
Logistics. The debt was used for capital expenditures, working
capital needs along with the repayment of senior notes.
On Jul 26, 2013, NuStar Energy announced better-than-expected
second-quarter 2013 earnings, mainly due to higher contribution
from Pipeline and Fuels marketing businesses. NuStar
Energy's earnings per unit (EPU) from continuing operations came
in at 27 cents, ahead of the Zacks Consensus Estimate of 21
cents. The results also came well ahead of the year-ago adjusted
profit of 6 cents.
NuStar Energy is a master limited partnership (MLP) that engages
in the transportation and storage of crude oil as well as refined
products in the U.S., the Netherlands Antilles, Canada, Mexico,
and the U.K.
Over the last few years, NuStar Energy has consolidated its
business through a combination of organic efforts and accretive
acquisitions. We believe that the higher operating expenses
associated with this expanded asset base may lead to reduced
returns, going forward.
The partnership currently retains a Zacks Rank #5 (Strong Sell),
implying that it is expected to significantly underperform the
broader U.S. equity market over the next 1 to 3 months.
However, one can look at oil and gas production pipeline MLPs
Magellan Midstream Partners LP
Delek Logistics Partners LP
Pioneer Southwest Energy Partners LP
) that offer value. Magellan Midstream retains a Zacks Rank #1
(Strong Buy), while Delek Logistics and Pioneer Southwest Energy
sport a Zacks Rank #2 (Buy).
DELEK LOGISTICS (DKL): Free Stock Analysis
MAGELLAN MDSTRM (MMP): Free Stock Analysis
NUSTAR ENERGY (NS): Free Stock Analysis
PIONEER SW EGY (PSE): Free Stock Analysis
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