NuStar Energy Results Miss Estimates

(RTTNews) - NuStar Energy L.P. (NS), a liquids terminal and pipeline operator, on Friday reported second-quarter net income to limited partners of $42.4 million or $0.54 per unit compared with $43.6 million or $0.56 per unit last year.

Revenues for the quarter were lower at $570.6 million compared with $749.7 million in the prior year.

Analysts polled by Thomson Reuters estimated earnings of $0.58 per share on revenues of $583.5 million for the quarter. Analysts' estimates typically exclude special items.

The company said that due to reduced volume projections for the remainder of the year on pipelines that serve its Gulf Coast markets, it now expects its fiscal-year 2015 pipeline segment EBITDA to be $25 million to $45 million higher than 2014; earlier it estimated an increase of $35 million to $55 million.

NuStar now expects 2015 storage segment EBITDA to be $20 million to $40 million higher than 2014; earlier it projected an increase of $10 million to $30 million.

Its 2015 fuels marketing segment EBITDA is still projected to be in the range of $20 million to $30 million.

The company now expects 2015 strategic capital spending of $430 million to $450 million, compared with prior guidance of $400 million to $420 million.

Its 2015 reliability capital spending is now expected in the range of $35 million to $45 million, compared with prior range of $45 million to $55 million range.