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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______ to _______
Commission File Number 1-16417
_________________________________________
ns-20220930_g1.jpg
NuStar Energy L.P.
(Exact name of registrant as specified in its charter)
_________________________________________
Delaware74-2956831
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
19003 IH-10 West
San Antonio, Texas
(Address of principal executive offices)
78257
(Zip Code)
Registrant’s telephone number, including area code (210918-2000
 _______________________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common UnitsNSNew York Stock Exchange
8.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred UnitsNSprANew York Stock Exchange
7.625% Series B Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred UnitsNSprBNew York Stock Exchange
9.00% Series C Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred UnitsNSprCNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes þ    No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes þ    No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:
Large accelerated filerþAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    o   
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes    No þ

The number of common units outstanding as of October 31, 2022 was 110,313,685.


NUSTAR ENERGY L.P.
FORM 10-Q
TABLE OF CONTENTS
Item 1.
Item 2.
Item 3.
Item 4.
Item 6.
2

PART I – FINANCIAL INFORMATION

Item 1.Financial Statements
NUSTAR ENERGY L.P. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited, Thousands of Dollars, Except Unit Data)
September 30,
2022
December 31,
2021
Assets
Current assets:
Cash and cash equivalents$7,544 $5,637 
Accounts receivable138,874 135,126 
Inventories15,249 16,644 
Prepaid and other current assets27,885 27,135 
Total current assets189,552 184,542 
Property, plant and equipment, at cost5,703,532 5,728,848 
Accumulated depreciation and amortization(2,277,490)(2,187,206)
Property, plant and equipment, net3,426,042 3,541,642 
Intangible assets, net524,467 557,785 
Goodwill732,356 732,356 
Other long-term assets, net130,563 140,007 
Total assets$5,002,980 $5,156,332 
Liabilities, Mezzanine Equity and Partners’ Equity
Current liabilities:
Accounts payable$80,805 $82,446 
Current portion of finance leases4,297 3,848 
Accrued interest payable74,410 34,139 
Accrued liabilities60,692 79,818 
Taxes other than income tax16,424 14,475 
Total current liabilities236,628 214,726 
Long-term debt, less current portion of finance leases3,068,055 3,183,555 
Deferred income tax liability2,845 11,831 
Other long-term liabilities139,369 147,956 
Total liabilities3,446,897 3,558,068 
Commitments and contingencies (Note 6)
Series D preferred limited partners (23,246,650 preferred units outstanding as of
September 30, 2022 and December 31, 2021) (Note 8)
630,641 616,439 
Partners’ equity (Note 9):
 Preferred limited partners
Series A (9,060,000 units outstanding as of September 30, 2022 and December 31, 2021)
218,307 218,307 
Series B (15,400,000 units outstanding as of September 30, 2022 and December 31, 2021)
371,476 371,476 
Series C (6,900,000 units outstanding as of September 30, 2022 and December 31, 2021)
166,518 166,518 
Common limited partners (110,313,685 and 109,986,273 common units outstanding
as of September 30, 2022 and December 31, 2021, respectively)
201,200 299,502 
Accumulated other comprehensive loss(32,059)(73,978)
Total partners’ equity925,442 981,825 
Total liabilities, mezzanine equity and partners’ equity$5,002,980 $5,156,332 
See Condensed Notes to Consolidated Financial Statements.
3

NUSTAR ENERGY L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited, Thousands of Dollars, Except Unit and Per Unit Data)
 Three Months Ended September 30,Nine Months Ended September 30,
 2022202120222021
Revenues:
Service revenues$277,380 $296,473 $820,752 $869,144 
Product sales135,863 115,872 432,511 331,940 
Total revenues413,243 412,345 1,253,263 1,201,084 
Costs and expenses:
Costs associated with service revenues:
Operating expenses (excluding depreciation and amortization expense)
91,286 100,143 272,636 287,923 
Depreciation and amortization expense63,140 66,126 188,683 203,508 
Total costs associated with service revenues154,426 166,269 461,319 491,431 
Costs associated with product sales117,324 107,047 378,217 300,801 
Goodwill impairment loss 34,060  34,060 
Other impairment losses 154,908 46,122 154,908 
General and administrative expenses (excluding depreciation and amortization expense)
27,676 27,365 82,656 79,334 
Other depreciation and amortization expense1,935 1,881 5,582 5,841 
Total costs and expenses301,361 491,530 973,896 1,066,375 
Operating income (loss)111,882 (79,185)279,367 134,709 
Interest expense, net(52,294)(53,513)(153,053)(162,211)
Other income, net1,475 8,450 7,158 11,744 
Income (loss) before income tax expense61,063 (124,248)133,472 (15,758)
Income tax expense1,430 685 2,328 3,535 
Net income (loss)$59,633 $(124,933)$131,144 $(19,293)
Basic and diluted net income (loss) per common unit (Note 10)
$0.20 $(1.48)$0.18 $(1.18)
Basic and diluted weighted-average common units outstanding110,310,921 109,532,381 110,265,359 109,522,849 
Comprehensive income (loss)$59,746 $(125,459)$173,063 $(15,455)
See Condensed Notes to Consolidated Financial Statements.

4

NUSTAR ENERGY L.P. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, Thousands of Dollars)
 Nine Months Ended September 30,
 20222021
Cash flows from operating activities:
Net income (loss)$131,144 $(19,293)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense194,265 209,349 
Amortization of unit-based compensation9,861 10,463 
Amortization of debt related items7,663 9,021 
Gain from insurance recoveries(625)(9,372)
Goodwill impairment loss 34,060 
Other impairment losses46,122 154,908 
Changes in current assets and current liabilities (Note 11)
32,839 15,678 
(Increase) decrease in other long-term assets(2,332)8,183 
Increase (decrease) in other long-term liabilities525 (5,574)
Other, net(5,684)(324)
Net cash provided by operating activities413,778 407,099 
Cash flows from investing activities:
Capital expenditures(111,437)(130,966)
Change in accounts payable related to capital expenditures(9,716)(5,464)
Proceeds from insurance recoveries5,805 9,372 
Proceeds from sale or disposition of assets59,643 339 
Net cash used in investing activities(55,705)(126,719)
Cash flows from financing activities:
Proceeds from long-term debt borrowings588,100 649,000 
Long-term debt repayments(706,000)(843,400)
Distributions to preferred unitholders(94,493)(95,663)
Distributions to common unitholders(132,288)(131,436)
Other, net(12,207)(4,740)
Net cash used in financing activities(356,888)(426,239)
Effect of foreign exchange rate changes on cash750 183 
Net increase (decrease) in cash, cash equivalents and restricted cash1,935 (145,676)
Cash, cash equivalents and restricted cash as of the beginning of the period14,439 162,426 
Cash, cash equivalents and restricted cash as of the end of the period$16,374 $16,750 
See Condensed Notes to Consolidated Financial Statements.
5

NUSTAR ENERGY L.P. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF PARTNERS’ EQUITY AND MEZZANINE EQUITY
Three Months Ended September 30, 2022 and 2021
(Unaudited, Thousands of Dollars, Except Per Unit Data)
Limited PartnersMezzanine Equity
 PreferredCommonAccumulated
Other
Comprehensive
Loss
Total Partners’ Equity
(Note 9)
Series D Preferred Limited Partners (Note 8)
Total
Balance as of July 1, 2022$756,301 $220,511 $(32,172)$944,640 $625,751 $1,570,391 
Net income16,608 27,170  43,778 15,855 59,633 
Other comprehensive income— — 113 113 — 113 
Distributions to partners:
Series A, B and C preferred
(16,608)— — (16,608)— (16,608)
Common ($0.40 per unit)
— (44,124)— (44,124)— (44,124)
Series D preferred
— — — — (15,855)(15,855)
Unit-based compensation
— 2,542 — 2,542 — 2,542 
Series D preferred unit accretion
— (4,890)— (4,890)4,890  
Other (9) (9) (9)
Balance as of September 30, 2022$756,301 $201,200 $(32,059)$925,442 $630,641 $1,556,083 

Balance as of July 1, 2021$756,301 $523,711 $(92,292)$1,187,720 $607,718 $1,795,438 
Net income (loss)16,034 (156,822) (140,788)15,855 (124,933)
Other comprehensive loss— — (526)(526)— (526)
Distributions to partners:
Series A, B and C preferred
(16,034)— — (16,034)— (16,034)
Common ($0.40 per unit)
— (43,813)— (43,813)— (43,813)
Series D preferred
— — — — (15,855)(15,855)
Unit-based compensation
— 2,721 — 2,721 — 2,721 
Series D Preferred Unit accretion
— (4,292)— (4,292)4,292  
Balance as of September 30, 2021$756,301 $321,505 $(92,818)$984,988 $612,010 $1,596,998 
See Condensed Notes to Consolidated Financial Statements.













6

NUSTAR ENERGY L.P. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF PARTNERS’ EQUITY AND MEZZANINE EQUITY
Nine Months Ended September 30, 2022 and 2021
(Unaudited, Thousands of Dollars, Except Per Unit Data)
Limited PartnersMezzanine Equity
 PreferredCommonAccumulated
Other
Comprehensive
Loss
Total Partners’ Equity
(Note 9)
Series D Preferred Limited Partners (Note 8)
Total
Balance as of January 1, 2022$756,301 $299,502 $(73,978)$981,825 $616,439 $1,598,264 
Net income47,515 36,066  83,581 47,563 131,144 
Other comprehensive income— — 41,919 41,919 — 41,919 
Distributions to partners:
Series A, B and C preferred
(47,515)— — (47,515)— (47,515)
Common ($1.20 per unit)
— (132,288)— (132,288)— (132,288)
Series D preferred
— — — — (47,563)(47,563)
Unit-based compensation
— 12,133 — 12,133 — 12,133 
Series D preferred unit accretion
— (14,205)— (14,205)14,205  
Other (8) (8)(3)(11)
Balance as of September 30, 2022$756,301 $201,200 $(32,059)$925,442 $630,641 $1,556,083 
Balance as of January 1, 2021$756,301 $572,314 $(96,656)$1,231,959 $599,542 $1,831,501 
Net income (loss)48,100 (114,956) (66,856)47,563 (19,293)
Other comprehensive income— — 3,838 3,838 — 3,838 
Distributions to partners:
Series A, B and C preferred
(48,100)— — (48,100)— (48,100)
Common ($1.20 per unit)
— (131,436)— (131,436)— (131,436)
Series D preferred
— — — — (47,563)(47,563)
Unit-based compensation
— 8,051 — 8,051 — 8,051 
Series D Preferred Unit accretion
— (12,468)— (12,468)12,468  
Balance as of September 30, 2021$756,301 $321,505 $(92,818)$984,988 $612,010 $1,596,998 
See Condensed Notes to Consolidated Financial Statements.
7

NUSTAR ENERGY L.P. AND SUBSIDIARIES
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. ORGANIZATION AND BASIS OF PRESENTATION

Organization and Operations
NuStar Energy L.P. (NYSE: NS) is a Delaware limited partnership primarily engaged in the transportation, terminalling and storage of petroleum products and renewable fuels and the transportation of anhydrous ammonia. Unless otherwise indicated, the terms “NuStar Energy,” “NS,” “the Partnership,” “we,” “our” and “us” are used in this report to refer to NuStar Energy L.P., to one or more of our consolidated subsidiaries or to all of them taken as a whole. Our business is managed under the direction of the board of directors of NuStar GP, LLC, the general partner of our general partner, Riverwalk Logistics, L.P., both of which are indirectly wholly owned subsidiaries of ours.

We conduct our operations through our subsidiaries, primarily NuStar Logistics, L.P. (NuStar Logistics) and NuStar Pipeline Operating Partnership L.P. (NuPOP). We have three business segments: pipeline, storage and fuels marketing.

Recent Development
On April 29, 2022, we sold the equity interests in our wholly owned subsidiaries that owned our Point Tupper terminal facility to EverWind Fuels for $60.0 million (the Point Tupper Terminal Disposition). Please refer to Note 3 for more information.

Other Events
Debt Amendments. On January 28, 2022, we amended and restated our $1.0 billion unsecured revolving credit agreement to extend the maturity to April 27, 2025, replace the LIBOR-based interest rate and modify other terms. Also on January 28, 2022, we amended our $100.0 million receivables financing agreement to extend the scheduled termination date to January 31, 2025, replace the LIBOR-based interest rate and modify other terms. Please refer to Note 5 for more information.

Selby Terminal Fire. On October 15, 2019, our terminal facility in Selby, California experienced a fire that destroyed two storage tanks and temporarily shut down the terminal. We received insurance proceeds of $5.8 million and $28.5 million for the nine months ended September 30, 2022 and 2021, respectively. We recorded a gain from business interruption insurance of $4.0 million for the nine months ended September 30, 2021, which is included in “Operating expenses” in the condensed consolidated statements of comprehensive income (loss). We believe we have adequate insurance to offset additional costs.

Basis of Presentation
These unaudited condensed consolidated financial statements include the accounts of the Partnership and subsidiaries in which the Partnership has a controlling interest. Inter-partnership balances and transactions have been eliminated in consolidation.

These unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to the Quarterly Report on Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Act of 1934. Accordingly, they do not include all of the information and notes required by GAAP for complete consolidated financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included, and all disclosures are adequate. All such adjustments are of a normal recurring nature unless disclosed otherwise. Operating results for the nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2021.

We have reclassified certain previously reported amounts in the consolidated financial statements and notes to conform to current-period presentation.

2. NEW ACCOUNTING PRONOUNCEMENT

In March 2020, the Financial Accounting Standards Board (FASB) issued guidance intended to provide relief to companies impacted by reference rate reform, which is the transition away from LIBOR as its publication is expected to cease after June 30, 2023. The amended guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The guidance is effective as of March 12, 2020 through December 31, 2022, and, in October 2022, the FASB affirmed a decision to extend the relief through December 31, 2024. We adopted the guidance on a prospective basis on the effective date, and it did not have an impact on our financial position, results of operations or disclosures at transition. We will continue to evaluate the impact on contracts modified on or before December 31, 2022 or the extension date prescribed by the FASB, whichever is later.

8

NUSTAR ENERGY L.P. AND SUBSIDIARIES
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
Pursuant to the Adjustable Interest Rate (LIBOR) Act (the LIBOR Act) signed into law in the U.S. on March 15, 2022, the Board of Governors of the Federal Reserve System has been directed to enact rules selecting a benchmark replacement rate to automatically replace LIBOR in LIBOR-based contracts that lack adequate fallback provisions upon cessation. The proposed benchmark replacement rate has not been finalized. As of September 30, 2022, $402.5 million of our variable-rate debt uses LIBOR as a benchmark for establishing the interest rate. In addition, the distribution rates on our 8.50% Series A and 7.625% Series B Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units are floating rates based on LIBOR, and the distribution rate on our 9.00% Series C Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units converts from a fixed rate to a floating rate based on LIBOR in December 2022.

3. DISPOSITIONS AND IMPAIRMENTS

Point Tupper Terminal Disposition
On April 29, 2022, we sold the equity interests in our wholly owned subsidiaries that owned our Point Tupper terminal facility in Nova Scotia, Canada (the Point Tupper Terminal Operations) to EverWind Fuels for $60.0 million. The terminal facility had a storage capacity of 7.8 million barrels and was included in the storage segment. We utilized the sales proceeds to reduce debt and thereby improve our debt metrics.

During the first quarter of 2022, we determined the Point Tupper Terminal Operations met the criteria to be classified as held for sale. We compared the carrying value of the Point Tupper Terminal Operations, which included $42.2 million in cumulative foreign currency translation losses accumulated since our acquisition of the Point Tupper terminal facility in 2005, to its fair value less costs to sell, and we recognized a pre-tax impairment loss of $46.1 million in the first quarter of 2022, which is presented in "Other impairment losses" on the condensed consolidated statements of comprehensive income (loss). We believe that the sales price of $60.0 million provided a reasonable indication of the fair value of the Point Tupper Terminal Operations as it represented an exit price in an orderly transaction between market participants. The sales price was a quoted price for identical assets and liabilities in a market that was not active and, thus, our fair value estimate fell within Level 2 of the fair value hierarchy. In the second quarter of 2022, we recorded a gain on the sale of $1.6 million, which is presented in “Other income, net” on the condensed consolidated statements of comprehensive income (loss).

Eastern U.S. Terminals Disposition
On August 1, 2021, we entered into an agreement (the Purchase Agreement) to sell the Eastern U.S. Terminal Operations to Sunoco LP for $250.0 million. The Eastern U.S. Terminal Operations included terminals in the following locations; Jacksonville, Florida; Andrews Air Force Base, Maryland; Baltimore, Maryland; Piney Point, Maryland; Virginia Beach, Virginia; Paulsboro, New Jersey; and Blue Island, Illinois, as well as both Linden, New Jersey terminals. The Eastern U.S. Terminal Operations had an aggregate storage capacity of 14.8 million barrels and were included in the storage segment. We determined these assets were no longer synergistic with our core assets. The Eastern U.S. Terminal Operations did not qualify for reporting as discontinued operations, as the sale did not represent a strategic shift that would have a major effect on our operations or financial results. We closed the sale on October 8, 2021 and used the proceeds from the sale to reduce debt and thereby improve our debt metrics.

The Eastern U.S. Terminal Operations met the criteria to be classified as held for sale upon our entrance into the Purchase Agreement during the third quarter of 2021. At that time, we allocated goodwill of $34.1 million to the Eastern U.S. Terminal Operations based on its fair value relative to the terminals reporting unit, with which it had been fully integrated. We tested the allocated goodwill for impairment by comparing the fair value of the Eastern U.S. Terminal Operations to its carrying value. The results of our goodwill impairment test indicated that the carrying value of the Eastern U.S. Terminal Operations exceeded its fair value, and we recognized a related goodwill impairment charge of $34.1 million in the third quarter of 2021 to reduce the allocated goodwill to $0. The goodwill impairment loss is reported in “Goodwill impairment loss” on the condensed consolidated statements of comprehensive income (loss). We believe that the sales price of $250.0 million provided a reasonable indication of the fair value of the Eastern U.S. Terminal Operations as it represented an exit price in an orderly transaction between market participants. The sales price was a quoted price for identical assets and liabilities in a market that was not active and, thus, our fair value estimate fell within Level 2 of the fair value hierarchy.

We compared the remaining carrying value of the Eastern U.S. Terminal Operations, after its goodwill impairment, to its fair value less costs to sell. We recognized an asset impairment loss of $95.7 million in the third quarter of 2021, which is reported in “Other impairment losses” on the condensed consolidated statements of comprehensive income (loss). The asset impairment loss included $23.9 million related to intangible assets representing customer contracts and relationships.

9

NUSTAR ENERGY L.P. AND SUBSIDIARIES
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
Houston Pipeline Impairment
In the third quarter of 2021, we recorded a long-lived asset impairment charge of $59.2 million within our pipeline segment related to our refined product pipeline extending from Mt. Belvieu, Texas to Corpus Christi, Texas (the Houston Pipeline). During the third quarter of 2021, we identified an indication of impairment related to the southern section of the Houston Pipeline, specifically that its physical condition would require significant investment in order to pursue commercial opportunities. Consequently, we separated the pipeline into two distinct assets: the northern and southern sections. Our estimate of the undiscounted cash flows associated with the southern section indicated it was not recoverable. Due to the factors described above, we determined the carrying value of the southern section exceeded its fair value, and reduced its carrying value to $0. We recorded the asset impairment charge in “Other impairment losses” on the condensed consolidated statements of comprehensive income (loss) for the three and nine months ended September 30, 2021. We determined that the northern portion of the pipeline was not impaired.

4. REVENUE FROM CONTRACTS WITH CUSTOMERS

Contract Assets and Contract Liabilities
The following table provides information about contract assets and contract liabilities from contracts with customers:
20222021
Contract AssetsContract LiabilitiesContract AssetsContract Liabilities
(Thousands of Dollars)
Balances as of January 1:
Current portion$2,336 $(15,443)$2,694 $(22,019)
Noncurrent portion504 (46,027)932 (47,537)
Total 2,840 (61,470)3,626 (69,556)
Activity:
Additions3,806 (32,895)1,924 (29,874)
Transfer to accounts receivable(4,224)— (3,907)— 
Transfer to revenues(83)38,158 (375)37,159 
Total (501)5,263 (2,358)7,285 
Balances as of September 30:
Current portion1,977 (14,327)486 (15,194)
Noncurrent portion362 (41,880)585 (46,056)
Held for sale  197 (1,021)
Total $2,339 $(56,207)$1,268 $(62,271)

Remaining Performance Obligations
The following table presents our estimated revenue from contracts with customers for remaining performance obligations that has not yet been recognized, representing our contractually committed revenue as of September 30, 2022 (in thousands of dollars):
2022 (remaining)$100,360 
2023330,534 
2024234,335 
2025147,234 
2026100,218 
Thereafter103,036 
Total$1,015,717 

10

NUSTAR ENERGY L.P. AND SUBSIDIARIES
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
Our contractually committed revenue, for purposes of the tabular presentation above, is limited to customer service contracts that have fixed pricing and fixed volume terms and conditions.

Disaggregation of Revenues
The following table disaggregates our revenues:
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
(Thousands of Dollars)
Pipeline segment:
Crude oil pipelines $101,865 $86,140 $281,999 $242,762 
Refined products and ammonia pipelines107,143 110,067 316,257 315,579 
Total pipeline segment revenues from contracts with customers209,008 196,207 598,256 558,341 
Storage segment:
Throughput terminals26,933 30,771 84,303 90,708 
Storage terminals (excluding lessor revenues)40,694 67,008 138,502 214,166 
Total storage segment revenues from contracts with customers
67,627 97,779 222,805 304,874 
Lessor revenues10,765 10,363 32,291 31,090 
Total storage segment revenues78,392 108,142 255,096 335,964 
Fuels marketing segment:
Revenues from contracts with customers
125,843 107,996 399,912 306,790 
Consolidation and intersegment eliminations  (1)(11)
Total revenues$413,243 $412,345 $1,253,263 $1,201,084 

5. DEBT

Revolving Credit Agreement
On January 28, 2022, NuStar Logistics amended and restated its $1.0 billion unsecured revolving credit agreement (the Revolving Credit Agreement) primarily to: (i) extend the maturity date from October 27, 2023 to April 27, 2025; (ii) increase the maximum amount of letters of credit capable of being issued from $400.0 million to $500.0 million; (iii) replace LIBOR benchmark provisions with customary secured overnight financing rate, or SOFR, benchmark provisions; (iv) remove the 0.50x increase permitted in our consolidated debt coverage ratio for certain rolling periods in which an acquisition for aggregate net consideration of at least $50.0 million occurs; and (v) add baskets and exceptions to certain negative covenants.

As of September 30, 2022, we had $2.0 million of borrowings outstanding and $993.3 million available for borrowing under the Revolving Credit Agreement. Letters of credit issued under the Revolving Credit Agreement totaled $4.7 million as of September 30, 2022 and limit the amount we can borrow under the Revolving Credit Agreement. Obligations under the Revolving Credit Agreement are guaranteed by NuStar Energy and NuPOP. The Revolving Credit Agreement provides for U.S. dollar borrowings, which bear interest, at our option, based on an alternative base rate or a SOFR-based rate. The Revolving Credit Agreement and certain fees under the Receivables Financing Agreement, defined below, are the only debt arrangements with interest rates that are subject to adjustment if our debt rating is downgraded (or upgraded) by certain credit rating agencies. As of September 30, 2022, our weighted-average interest rate related to borrowings under the Revolving Credit Agreement was 7.8%.

The Revolving Credit Agreement is subject to maximum consolidated debt coverage ratio and minimum consolidated interest coverage ratio requirements, which may limit the amount we can borrow to an amount that is less than the total amount available for borrowing. For a rolling period of four quarters, the consolidated debt coverage ratio (as defined in the Revolving
11

NUSTAR ENERGY L.P. AND SUBSIDIARIES
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
Credit Agreement) cannot exceed 5.00-to-1.00, and the consolidated interest coverage ratio (as defined in the Revolving Credit Agreement) must not be less than 1.75-to-1.00. As of September 30, 2022, we believe that we are in compliance with the covenants in the Revolving Credit Agreement.

Receivables Financing Agreement
NuStar Energy and NuStar Finance LLC (NuStar Finance), a special purpose entity and wholly owned subsidiary of NuStar Energy, are parties to a $100.0 million receivables financing agreement with a third-party lender, with a scheduled termination date of January 31, 2025 (the Receivables Financing Agreement) and agreements with certain of NuStar Energy’s wholly owned subsidiaries (collectively with the Receivables Financing Agreement, the Securitization Program). NuStar Energy provides a performance guarantee in connection with the Securitization Program. Under the Securitization Program, certain of NuStar Energy’s wholly owned subsidiaries sell their accounts receivable to NuStar Finance on an ongoing basis, and NuStar Finance provides the newly acquired accounts receivable as collateral for its revolving borrowings under the Receivables Financing Agreement. NuStar Finance is a separate legal entity and the assets of NuStar Finance, including these accounts receivable, are not available to satisfy the claims of creditors of NuStar Energy, its subsidiaries selling receivables under the Securitization Program or their affiliates. The amount available for borrowing is based on the availability of eligible receivables and other customary factors and conditions. On January 28, 2022, the Receivables Financing Agreement was amended primarily to: (i) extend the scheduled termination date from September 20, 2023 to January 31, 2025; (ii) reduce the floor rate in the calculation of our borrowing rates; and (iii) replace provisions related to the LIBOR rate of interest with references to SOFR rates of interest.

Borrowings under the Receivables Financing Agreement bear interest, at NuStar Finance’s option, at a base rate or a SOFR rate, each as defined in the Receivables Financing Agreement. As of September 30, 2022, the amount of borrowings outstanding under the Receivables Financing Agreement totaled $74.4 million, the interest rate related to outstanding borrowings was 4.7% and $123.4 million of our accounts receivable was included in the Securitization Program.

Fair Value of Long-Term Debt
The estimated fair values and carrying amounts of long-term debt, excluding finance leases, were as follows:
September 30, 2022December 31, 2021
 (Thousands of Dollars)
Fair value$2,825,140 $3,459,153 
Carrying amount$3,016,436 $3,130,625 

We have estimated the fair value of our publicly traded notes based upon quoted prices in active markets; therefore, we determined that the fair value of our publicly traded notes falls in Level 1 of the fair value hierarchy. With regard to our other debt, for which a quoted market price is not available, we have estimated the fair value using a discounted cash flow analysis using current incremental borrowing rates for similar types of borrowing arrangements and determined that the fair value falls in Level 2 of the fair value hierarchy. The carrying amount includes unamortized debt issuance costs.

6. COMMITMENTS AND CONTINGENCIES

We have contingent liabilities resulting from various litigation, claims and commitments. We record accruals for loss contingencies when losses are considered probable and can be reasonably estimated. Legal fees associated with defending the Partnership in legal matters are expensed as incurred. We accrued $1.2 million and $0.1 million for contingent losses as of September 30, 2022 and December 31, 2021, respectively. The amount that will ultimately be paid related to such matters may differ from the recorded accruals, and the timing of such payments is uncertain. We evaluate each contingent loss at least quarterly, and more frequently as each matter progresses and develops over time, and we do not believe that the resolution of any particular claim or proceeding, or all matters in the aggregate, would have a material adverse effect on our results of operations, financial position or liquidity.

12

NUSTAR ENERGY L.P. AND SUBSIDIARIES
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
7. DERIVATIVES

We utilize various derivative instruments to manage our exposure to interest rate risk and commodity price risk. Our risk management policies and procedures are designed to monitor interest rates, futures and swap positions and over-the-counter positions, as well as physical commodity volumes, grades, locations and delivery schedules, to help ensure that our hedging activities address our market risks. Derivative financial instruments associated with commodity price risk with respect to our petroleum product inventories and related firm commitments to purchase and/or sell such inventories were not material for any periods presented.

We were a party to certain interest rate swap agreements to manage our exposure to changes in interest rates, which included forward-starting interest rate swap agreements that qualified as cash flow hedges prior to their termination. We reclassify the mark-to-market adjustments related to these cash flows hedges that were recorded in “Accumulated other comprehensive loss” (AOCI) into “Interest expense, net” as the underlying forecasted interest payments occur or if the interest payments are probable not to occur. We reclassified losses on cash flow hedges to “Interest expense, net” of $0.5 million and $1.3 million for the three months ended September 30, 2022 and 2021, respectively, and losses of $1.6 million and $4.0 million for the nine months ended September 30, 2022 and 2021, respectively. As of September 30, 2022, we expect to reclassify a loss of $2.3 million to “Interest expense, net” within the next twelve months associated with unwound forward-starting interest rate swaps.

8. SERIES D CUMULATIVE CONVERTIBLE PREFERRED UNITS

Distributions on the Series D Cumulative Convertible Preferred Units (Series D Preferred Units) are payable out of any legally available funds, accrue and are cumulative from the original issuance dates, and are payable on the 15th day (or next business day) of each of March, June, September and December, to holders of record on the first business day of each payment month. The number of Series D Preferred Units issued and outstanding as of September 30, 2022 and December 31, 2021 totaled 23,246,650. The distribution rates on the Series D Preferred Units are as follows: (i) 9.75%, or $57.6 million, per annum ($0.619 per unit per distribution period) for the first two years (beginning with the September 17, 2018 distribution); (ii) 10.75%, or $63.4 million, per annum ($0.682 per unit per distribution period) for years three through five; and (iii) the greater of 13.75%, or $81.1 million, per annum ($0.872 per unit per distribution period) or the distribution per common unit thereafter. While the Series D Preferred Units are outstanding, the Partnership will be prohibited from paying distributions on any junior securities, including the common units, unless full cumulative distributions on the Series D Preferred Units (and any parity securities) have been, or contemporaneously are being, paid or set aside for payment through the most recent Series D Preferred Unit distribution payment date. Any Series D Preferred Unit distributions in excess of $0.635 per unit may be paid, in the Partnership’s sole discretion, in additional Series D Preferred Units, with the remainder paid in cash.

In October 2022, our board of directors declared distributions of $0.682 per Series D Preferred Unit to be paid on December 15, 2022.

9. PARTNERS' EQUITY

Series A, B and C Preferred Units
We allocate net income to our 8.50% Series A, 7.625% Series B and 9.00% Series C Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units (collectively, the Series A, B and C Preferred Units) equal to the amount of distributions earned during the period. Distributions on our Series A, B and C Preferred Units are payable out of any legally available funds, accrue and are cumulative from the original issuance dates, and are payable on the 15th day (or next business day) of each of March, June, September and December of each year to holders of record on the first business day of each payment month.

Information on our Series A, B and C Preferred Units is shown below:
Units
Units Issued and Outstanding as of September 30, 2022
Optional Redemption Date/Date When Distribution Rate Becomes Floating
Floating Annual Rate (as a Percentage of the $25.00 Liquidation Preference per Unit)
Series A Preferred Units9,060,000December 15, 2021
Three-month LIBOR plus 6.766%
Series B Preferred Units15,400,000June 15, 2022
Three-month LIBOR plus 5.643%
Series C Preferred Units6,900,000December 15, 2022
Three-month LIBOR plus 6.88%

13

NUSTAR ENERGY L.P. AND SUBSIDIARIES
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
Distribution information on our Series A, B and C Preferred Units is as follows:
Series A Preferred UnitsSeries B Preferred UnitsSeries C Preferred Units
Distribution PeriodDistribution Rate per UnitTotal DistributionDistribution Rate per UnitTotal DistributionDistribution Rate per UnitTotal Distribution
(Thousands of Dollars)(Thousands of Dollars)(Thousands of Dollars)
September 15, 2022 - December 14, 2022$0.64059 $5,804 $0.57040 $8,784 $0.56250 $3,881 
June 15, 2022 - September 14, 2022$0.54808 $4,966 $0.47789 $7,360 $0.56250 $3,881 
March 15, 2022 - June 14, 2022$0.47817 $4,332 $0.47657 $7,339 $0.56250 $3,881 
December 15, 2021 - March 14, 2022$0.43606 $3,951 $0.47657 $7,339 $0.56250 $3,881 

In October 2022, our board of directors declared distributions with respect to the Series A, B and C Preferred Units to be paid on December 15, 2022.

Common Limited Partners
We make quarterly distributions to common unitholders of 100% of our “Available Cash,” generally defined as cash receipts less cash disbursements, including distributions to our preferred units, and cash reserves established by the general partner, in its sole discretion. These quarterly distributions are declared and paid within 45 days subsequent to each quarter-end. The common unitholders receive a distribution each quarter as determined by the board of directors, subject to limitation by the distributions in arrears, if any, on our preferred units. In October 2022, our board of directors declared distributions with respect to our common units for the quarter ended September 30, 2022.

The following table summarizes information about cash distributions to our common limited partners applicable to the period in which the distributions were earned:
Quarter EndedCash Distributions
Per Unit
Total Cash
Distributions
Record DatePayment Date
(Thousands of Dollars)
September 30, 2022$0.40 $44,125 November 7, 2022November 14, 2022
June 30, 2022$0.40 $44,128 August 8, 2022August 12, 2022
March 31, 2022$0.40 $44,165 May 9, 2022May 13, 2022
December 31, 2021$0.40 $44,008 February 8, 2022February 14, 2022

14

NUSTAR ENERGY L.P. AND SUBSIDIARIES
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
Accumulated Other Comprehensive Income (Loss)
The balance of and changes in the components included in AOCI were as follows:
Three Months Ended September 30,
20222021
Foreign Currency TranslationCash Flow HedgesPension and Other Postretirement BenefitsTotalForeign Currency TranslationCash Flow HedgesPension and Other Postretirement BenefitsTotal
(Thousands of Dollars)
Balance as of July 1$(153)$(35,436)$3,417 $(32,172)$(40,311)$(39,467)$(12,514)$(92,292)
Other comprehensive income (loss) before reclassification adjustments15