NuStar Energy L.P. Declares First Quarter 2020 Unit Distributions

NuStar Energy L.P. (NYSE: NS) announced that its Board of Directors declared a first quarter 2020 common unit distribution of $0.40 per unit, which is a 33 percent reduction from last quarter’s distribution. This reduction is expected to preserve approximately $88 million per year to support NuStar’s balance sheet. The first quarter common unit distribution will be paid on May 15, 2020 to holders of record as of May 11, 2020.

“The change in our distribution policy is the most recent of several actions we have taken to preserve cash and strengthen our balance sheet in light of the many challenges resulting from the COVID-19 pandemic. We have also entered into a $750 million loan facility to pay down our revolver, bolster our liquidity and address our near-term debt maturities and made significant cuts to our 2020 CAPEX and other controllable expenses to help us weather this challenging market,” said Brad Barron, NuStar president and CEO.

In addition to this distribution policy change, NuStar previously announced significant cuts to capital spending and expenses, including a 45 percent reduction in its 2020 strategic capital program and a reduction of between $20 - $30 million of controllable expenses for the full year of 2020.

“Through these trying times, we have been focused on our primary goals: protecting our employees by making sure they stay safe, healthy and productive; protecting our communities by continuing to provide the critical energy frontline workers need to fight the pandemic effectively; and protecting our business by ensuring we have the financial flexibility to navigate through these difficult market conditions.

“While these are unprecedented times and in the short term we need to do everything possible to ensure that we have the liquidity to succeed in these difficult circumstances, we strongly believe that NuStar’s `best-in-class,' diversified assets combine to create a very resilient company capable of weathering this storm and recovering quickly once the economy gets going again,” said Barron. “Of course, this is only strengthened by our strong, creditworthy customers, along with the cash preservation measures we have implemented over the past few weeks.