Company Quick10K Filing
NuStar Energy
Price1.00 EPS181,975,000
Shares-0 P/E0
MCap-0 P/FCF-0
Net Debt3,272 EBIT-174
TEV3,272 TEV/EBIT-19
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-03-31 Filed 2020-05-08
10-K 2019-12-31 Filed 2020-02-27
10-Q 2019-09-30 Filed 2019-11-08
10-Q 2019-06-30 Filed 2019-08-09
10-Q 2019-03-31 Filed 2019-05-10
10-K 2018-12-31 Filed 2019-02-28
10-Q 2018-09-30 Filed 2018-11-06
10-Q 2018-06-30 Filed 2018-08-07
10-Q 2018-03-31 Filed 2018-05-08
10-K 2017-12-31 Filed 2018-02-28
10-Q 2017-09-30 Filed 2017-11-08
10-Q 2017-06-30 Filed 2017-08-08
10-Q 2017-03-31 Filed 2017-05-09
10-K 2016-12-31 Filed 2017-02-23
10-Q 2016-09-30 Filed 2016-11-07
10-Q 2016-06-30 Filed 2016-08-08
10-Q 2016-03-31 Filed 2016-05-05
10-K 2015-12-31 Filed 2016-02-25
10-Q 2015-09-30 Filed 2015-11-05
10-Q 2015-06-30 Filed 2015-08-06
10-Q 2015-03-31 Filed 2015-05-07
10-K 2014-12-31 Filed 2015-02-26
10-Q 2014-09-30 Filed 2014-11-06
10-Q 2014-06-30 Filed 2014-08-05
10-Q 2014-03-31 Filed 2014-05-08
10-K 2013-12-31 Filed 2014-03-03
10-Q 2013-09-30 Filed 2013-11-12
10-Q 2013-06-30 Filed 2013-08-07
10-Q 2013-03-31 Filed 2013-05-08
10-K 2012-12-31 Filed 2013-03-01
10-Q 2012-09-30 Filed 2012-11-08
10-Q 2012-06-30 Filed 2012-08-07
10-Q 2012-03-31 Filed 2012-04-25
10-K 2011-12-31 Filed 2012-02-28
10-Q 2011-09-30 Filed 2011-11-07
10-Q 2011-06-30 Filed 2011-08-04
10-Q 2011-03-31 Filed 2011-05-05
10-K 2010-12-31 Filed 2011-02-25
10-Q 2010-09-30 Filed 2010-11-04
10-Q 2010-06-30 Filed 2010-08-05
10-Q 2010-03-31 Filed 2010-05-06
10-K 2009-12-31 Filed 2010-02-26
8-K 2020-06-03
8-K 2020-05-19
8-K 2020-05-05
8-K 2020-04-28
8-K 2020-04-19
8-K 2020-04-06
8-K 2020-03-06
8-K 2020-03-03
8-K 2020-02-05
8-K 2020-01-14
8-K 2019-12-11
8-K 2019-11-25
8-K 2019-11-20
8-K 2019-11-05
8-K 2019-09-12
8-K 2019-08-14
8-K 2019-08-08
8-K 2019-07-29
8-K 2019-05-16
8-K 2019-05-15
8-K 2019-05-10
8-K 2019-05-09
8-K 2019-04-29
8-K 2019-04-23
8-K 2019-04-01
8-K 2019-03-05
8-K 2019-01-31
8-K 2018-12-05
8-K 2018-11-05
8-K 2018-09-20
8-K 2018-08-15
8-K 2018-08-07
8-K 2018-07-23
8-K 2018-07-20
8-K 2018-06-26
8-K 2018-04-26
8-K 2018-03-28
8-K 2018-02-08
8-K 2018-02-07

NS 10Q Quarterly Report

Part I - Financial Information
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1A. Risk Factors
Item 6. Exhibits
EX-10.03 ns1q2010-qex1003.htm
EX-31.01 ns1q2010-qex3101.htm
EX-31.02 ns1q2010-qex3102.htm
EX-32.01 ns1q2010-qex3201.htm
EX-32.02 ns1q2010-qex3202.htm

NuStar Energy Earnings 2020-03-31

Balance SheetIncome StatementCash Flow
10.08.06.04.02.00.02012201420172020
Assets, Equity
1.00.70.40.2-0.1-0.42012201420172020
Rev, G Profit, Net Income
1.50.90.3-0.4-1.0-1.62012201420172020
Ops, Inv, Fin

Document
false--12-31Q1202000011108050.87272000610002500000000.600.60108527806109194072P3Y37000000.137590600001540000069000009060000154000006900000P0Y9MP1YP1YP1YP1Y12324665023246650 0001110805 2020-01-01 2020-03-31 0001110805 ns:CommonLimitedPartnerMember 2020-01-01 2020-03-31 0001110805 ns:PreferredLimitedPartnerMember 2020-01-01 2020-03-31 0001110805 ns:SeriesBPreferredLimitedPartnerMember 2020-01-01 2020-03-31 0001110805 ns:SeriesAPreferredLimitedPartnerMember 2020-01-01 2020-03-31 0001110805 ns:SeriesCPreferredLimitedPartnerMember 2020-01-01 2020-03-31 0001110805 ns:CommonLimitedPartnerMember 2020-01-01 2020-03-31 0001110805 2020-04-30 0001110805 2020-03-31 0001110805 2019-12-31 0001110805 ns:SeriesBPreferredLimitedPartnerMember 2020-03-31 0001110805 ns:SeriesBPreferredLimitedPartnerMember 2019-12-31 0001110805 ns:SeriesAPreferredLimitedPartnerMember 2020-03-31 0001110805 ns:SeriesAPreferredLimitedPartnerMember 2019-12-31 0001110805 ns:SeriesCPreferredLimitedPartnerMember 2020-03-31 0001110805 ns:SeriesCPreferredLimitedPartnerMember 2019-12-31 0001110805 us-gaap:ServiceMember 2019-01-01 2019-03-31 0001110805 2019-01-01 2019-03-31 0001110805 us-gaap:ProductMember 2019-01-01 2019-03-31 0001110805 us-gaap:ProductMember 2020-01-01 2020-03-31 0001110805 us-gaap:ServiceMember 2020-01-01 2020-03-31 0001110805 2018-12-31 0001110805 2019-03-31 0001110805 ns:PreferredLimitedPartnerMember 2019-01-01 2019-03-31 0001110805 ns:CommonLimitedPartnerMember 2019-01-01 2019-03-31 0001110805 ns:SeriesDPreferredLimitedPartnerMember 2019-01-01 2019-03-31 0001110805 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0001110805 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-03-31 0001110805 ns:PreferredLimitedPartnerMember 2019-03-31 0001110805 ns:PreferredLimitedPartnerMember 2018-12-31 0001110805 ns:CommonLimitedPartnerMember 2019-03-31 0001110805 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0001110805 ns:CommonLimitedPartnerMember 2018-12-31 0001110805 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-03-31 0001110805 ns:SeriesDPreferredLimitedPartnerMember 2020-01-01 2020-03-31 0001110805 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0001110805 ns:PreferredLimitedPartnerMember 2020-03-31 0001110805 ns:PreferredLimitedPartnerMember 2019-12-31 0001110805 ns:CommonLimitedPartnerMember 2020-03-31 0001110805 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-31 0001110805 ns:CommonLimitedPartnerMember 2019-12-31 0001110805 2019-10-15 2019-10-15 0001110805 ns:SelbyCaliforniaFireMember 2019-10-01 2019-12-31 0001110805 ns:BusinessInterruptionLossfromSelbyCaliforniaFireMember ns:SelbyCaliforniaFireMember 2020-01-01 2020-03-31 0001110805 us-gaap:SubsequentEventMember ns:SelbyCaliforniaFireMember 2020-04-01 2020-04-30 0001110805 ns:CrudeOilPipelinesMember 2020-01-01 2020-03-31 0001110805 ns:SelbyCaliforniaFireMember 2020-01-01 2020-03-31 0001110805 us-gaap:DiscontinuedOperationsHeldForSaleOrDisposedOfBySaleMember 2019-01-01 2019-03-31 0001110805 2019-04-01 2019-06-30 0001110805 ns:TheSt.EustatiusDispositionMember 2019-07-29 2019-07-29 0001110805 ns:St.EustatiusBunkersMember 2019-01-01 2019-03-31 0001110805 ns:St.EustatiusBunkersMember 2019-03-31 0001110805 ns:PipelineSegmentMember 2020-01-01 2020-03-31 0001110805 ns:ThroughputTerminalMember ns:StorageSegmentMember 2019-01-01 2019-03-31 0001110805 ns:ThroughputTerminalMember ns:StorageSegmentMember 2020-01-01 2020-03-31 0001110805 ns:StorageTerminalMember ns:StorageSegmentMember 2020-01-01 2020-03-31 0001110805 ns:StorageSegmentMember 2019-01-01 2019-03-31 0001110805 ns:PipelineSegmentMember 2019-01-01 2019-03-31 0001110805 ns:StorageSegmentMember 2020-01-01 2020-03-31 0001110805 ns:CrudeOilPipelinesMember ns:PipelineSegmentMember 2020-01-01 2020-03-31 0001110805 ns:RefinedProductsandAmmoniaPipelinesMember ns:PipelineSegmentMember 2020-01-01 2020-03-31 0001110805 us-gaap:IntersegmentEliminationMember 2019-01-01 2019-03-31 0001110805 ns:StorageTerminalMember ns:StorageSegmentMember 2019-01-01 2019-03-31 0001110805 ns:FuelsMarketingSegmentMember 2020-01-01 2020-03-31 0001110805 ns:FuelsMarketingSegmentMember 2019-01-01 2019-03-31 0001110805 us-gaap:IntersegmentEliminationMember 2020-01-01 2020-03-31 0001110805 ns:RefinedProductsandAmmoniaPipelinesMember ns:PipelineSegmentMember 2019-01-01 2019-03-31 0001110805 ns:CrudeOilPipelinesMember ns:PipelineSegmentMember 2019-01-01 2019-03-31 0001110805 us-gaap:OtherCurrentAssetsMember 2018-12-31 0001110805 ns:LiabilitiesHeldforSaleMember 2019-12-31 0001110805 us-gaap:AccruedLiabilitiesMember 2019-03-31 0001110805 ns:AssetsHeldforSaleMember 2019-12-31 0001110805 ns:LiabilitiesHeldforSaleMember 2018-12-31 0001110805 us-gaap:OtherCurrentAssetsMember 2020-03-31 0001110805 us-gaap:AccruedLiabilitiesMember 2020-03-31 0001110805 us-gaap:AccruedLiabilitiesMember 2018-12-31 0001110805 ns:AssetsHeldforSaleMember 2018-12-31 0001110805 us-gaap:OtherCurrentAssetsMember 2019-03-31 0001110805 us-gaap:OtherCurrentAssetsMember 2019-12-31 0001110805 us-gaap:AccruedLiabilitiesMember 2019-12-31 0001110805 2024-01-01 2020-03-31 0001110805 2025-01-01 2020-03-31 0001110805 2021-01-01 2020-03-31 0001110805 2020-04-01 2020-03-31 0001110805 2023-01-01 2020-03-31 0001110805 2022-01-01 2020-03-31 0001110805 ns:PetroleosdeVenezuelaS.A.PDVSAMember 2019-01-01 2019-03-31 0001110805 ns:AmendedReceivablesFinancingAgreementMember 2020-03-31 0001110805 ns:GozoneBondsMember 2020-01-01 2020-03-31 0001110805 ns:LogisticsRevolvingCreditAgreementMember 2020-01-01 2020-03-31 0001110805 ns:GozoneBondsMember 2019-12-31 0001110805 ns:LogisticsRevolvingCreditAgreementMember 2020-03-31 0001110805 ns:GozoneBondsMember 2020-03-04 2020-03-04 0001110805 ns:LogisticsRevolvingCreditAgreementMember 2019-12-31 0001110805 us-gaap:OtherCurrentLiabilitiesMember us-gaap:InterestRateContractMember us-gaap:FairValueInputsLevel2Member us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-31 0001110805 us-gaap:InterestRateContractMember us-gaap:CashFlowHedgingMember 2020-03-31 0001110805 us-gaap:InterestRateContractMember us-gaap:CashFlowHedgingMember 2020-01-01 2020-03-31 0001110805 us-gaap:OtherCurrentLiabilitiesMember us-gaap:InterestRateContractMember us-gaap:FairValueInputsLevel2Member us-gaap:DesignatedAsHedgingInstrumentMember 2020-03-31 0001110805 us-gaap:InterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:OtherComprehensiveIncomeMember 2020-01-01 2020-03-31 0001110805 us-gaap:InterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:InterestExpenseMember 2020-01-01 2020-03-31 0001110805 us-gaap:InterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:OtherComprehensiveIncomeMember 2019-01-01 2019-03-31 0001110805 us-gaap:InterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:InterestExpenseMember 2019-01-01 2019-03-31 0001110805 us-gaap:InterestRateContractMember us-gaap:CashFlowHedgingMember 2019-12-31 0001110805 ns:PreferredStockDistributionsPeriodDuringWhichRateIsEffectiveJune292020toJune282023Member ns:SeriesDPreferredLimitedPartnerMember 2020-01-01 2020-03-31 0001110805 ns:PreferredStockDistributionsPeriodJune162019andthereafterMember ns:SeriesDPreferredLimitedPartnerMember 2020-01-01 2020-03-31 0001110805 ns:PreferredStockDistributionsPeriodDuringWhichRateIsEffectiveJune292018toJune282020Member ns:SeriesDPreferredLimitedPartnerMember 2020-01-01 2020-03-31 0001110805 ns:SeriesDPreferredLimitedPartnerMember us-gaap:SubsequentEventMember 2020-04-01 2020-06-30 0001110805 ns:PreferredStockDistributionsPeriodPeriodDuringWhichRateIsEffectiveJune292023andthereafterMember ns:SeriesDPreferredLimitedPartnerMember 2020-01-01 2020-03-31 0001110805 ns:PreferredStockDistributionsPeriodPeriodDuringWhichRateIsEffectiveJune292023andthereafterMember srt:MinimumMember ns:SeriesDPreferredLimitedPartnerMember 2020-01-01 2020-03-31 0001110805 ns:SeriesCPreferredLimitedPartnerMember 2020-01-01 2020-03-31 0001110805 ns:SeriesBPreferredLimitedPartnerMember 2020-01-01 2020-03-31 0001110805 ns:SeriesAPreferredLimitedPartnerMember 2020-01-01 2020-03-31 0001110805 ns:CommonLimitedPartnerMember 2019-10-01 2019-12-31 0001110805 us-gaap:AccumulatedTranslationAdjustmentMember 2020-01-01 2020-03-31 0001110805 us-gaap:ParentMember 2020-01-01 2020-03-31 0001110805 us-gaap:InterestExpenseMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-01-01 2020-03-31 0001110805 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-03-31 0001110805 us-gaap:ParentMember 2019-12-31 0001110805 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-12-31 0001110805 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-01-01 2020-03-31 0001110805 us-gaap:OtherIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-01-01 2020-03-31 0001110805 us-gaap:ParentMember 2020-03-31 0001110805 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-01-01 2020-03-31 0001110805 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-03-31 0001110805 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-12-31 0001110805 us-gaap:InterestExpenseMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-01-01 2020-03-31 0001110805 us-gaap:OtherIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-01-01 2020-03-31 0001110805 us-gaap:InterestExpenseMember us-gaap:ParentMember 2020-01-01 2020-03-31 0001110805 us-gaap:InterestExpenseMember us-gaap:AccumulatedTranslationAdjustmentMember 2020-01-01 2020-03-31 0001110805 us-gaap:AccumulatedTranslationAdjustmentMember 2019-12-31 0001110805 us-gaap:OtherIncomeMember us-gaap:AccumulatedTranslationAdjustmentMember 2020-01-01 2020-03-31 0001110805 us-gaap:AccumulatedTranslationAdjustmentMember 2020-03-31 0001110805 us-gaap:OtherIncomeMember us-gaap:ParentMember 2020-01-01 2020-03-31 0001110805 us-gaap:CashAndCashEquivalentsMember 2020-03-31 0001110805 us-gaap:OtherNoncurrentAssetsMember 2019-12-31 0001110805 us-gaap:CashAndCashEquivalentsMember 2019-12-31 0001110805 us-gaap:OtherNoncurrentAssetsMember 2020-03-31 0001110805 us-gaap:CorporateNonSegmentMember 2019-01-01 2019-03-31 0001110805 us-gaap:OperatingSegmentsMember ns:PipelineSegmentMember 2019-01-01 2019-03-31 0001110805 us-gaap:OperatingSegmentsMember ns:PipelineSegmentMember 2020-01-01 2020-03-31 0001110805 us-gaap:CorporateNonSegmentMember 2020-01-01 2020-03-31 0001110805 us-gaap:OperatingSegmentsMember 2020-01-01 2020-03-31 0001110805 us-gaap:OperatingSegmentsMember ns:FuelsMarketingSegmentMember 2019-01-01 2019-03-31 0001110805 us-gaap:OperatingSegmentsMember 2019-01-01 2019-03-31 0001110805 us-gaap:OperatingSegmentsMember ns:FuelsMarketingSegmentMember 2020-01-01 2020-03-31 0001110805 us-gaap:OperatingSegmentsMember ns:StorageSegmentMember 2020-01-01 2020-03-31 0001110805 us-gaap:OperatingSegmentsMember ns:StorageSegmentMember 2019-01-01 2019-03-31 0001110805 us-gaap:OperatingSegmentsMember ns:StorageSegmentMember 2019-12-31 0001110805 us-gaap:OperatingSegmentsMember ns:PipelineSegmentMember 2020-03-31 0001110805 us-gaap:OperatingSegmentsMember 2019-12-31 0001110805 us-gaap:OperatingSegmentsMember ns:PipelineSegmentMember 2019-12-31 0001110805 us-gaap:OperatingSegmentsMember 2020-03-31 0001110805 us-gaap:CorporateNonSegmentMember 2020-03-31 0001110805 us-gaap:OperatingSegmentsMember ns:StorageSegmentMember 2020-03-31 0001110805 us-gaap:OperatingSegmentsMember ns:FuelsMarketingSegmentMember 2019-12-31 0001110805 us-gaap:CorporateNonSegmentMember 2019-12-31 0001110805 us-gaap:OperatingSegmentsMember ns:FuelsMarketingSegmentMember 2020-03-31 0001110805 ns:NustarEnergyLpMember ns:NustarLogisticsLpMember 2020-01-01 2020-03-31 0001110805 ns:NustarEnergyLpMember ns:NustarPipelineOperatingPartnershipLpMember 2020-01-01 2020-03-31 0001110805 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2020-03-31 0001110805 ns:NustarLogisticsLpMember srt:SubsidiaryIssuerMember srt:ReportableLegalEntitiesMember 2020-03-31 0001110805 srt:ConsolidationEliminationsMember 2020-03-31 0001110805 ns:NustarPipelineOperatingPartnershipLpMember srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2020-03-31 0001110805 ns:NustarEnergyLpMember ns:ParentCompanyGuarantorMember srt:ReportableLegalEntitiesMember 2020-03-31 0001110805 srt:ConsolidationEliminationsMember 2019-12-31 0001110805 ns:NustarLogisticsLpMember srt:SubsidiaryIssuerMember srt:ReportableLegalEntitiesMember 2019-12-31 0001110805 ns:NustarPipelineOperatingPartnershipLpMember srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2019-12-31 0001110805 ns:NustarEnergyLpMember ns:ParentCompanyGuarantorMember srt:ReportableLegalEntitiesMember 2019-12-31 0001110805 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2019-12-31 0001110805 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2019-01-01 2019-03-31 0001110805 ns:NustarEnergyLpMember ns:ParentCompanyGuarantorMember srt:ReportableLegalEntitiesMember 2019-01-01 2019-03-31 0001110805 ns:NustarPipelineOperatingPartnershipLpMember srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2019-01-01 2019-03-31 0001110805 ns:NustarLogisticsLpMember srt:SubsidiaryIssuerMember srt:ReportableLegalEntitiesMember 2019-01-01 2019-03-31 0001110805 srt:ConsolidationEliminationsMember 2019-01-01 2019-03-31 0001110805 srt:ConsolidationEliminationsMember 2020-01-01 2020-03-31 0001110805 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2020-01-01 2020-03-31 0001110805 ns:NustarEnergyLpMember ns:ParentCompanyGuarantorMember srt:ReportableLegalEntitiesMember 2020-01-01 2020-03-31 0001110805 ns:NustarPipelineOperatingPartnershipLpMember srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2020-01-01 2020-03-31 0001110805 ns:NustarLogisticsLpMember srt:SubsidiaryIssuerMember srt:ReportableLegalEntitiesMember 2020-01-01 2020-03-31 0001110805 srt:ConsolidationEliminationsMember 2018-12-31 0001110805 ns:NustarEnergyLpMember ns:ParentCompanyGuarantorMember srt:ReportableLegalEntitiesMember 2019-03-31 0001110805 ns:NustarLogisticsLpMember srt:SubsidiaryIssuerMember srt:ReportableLegalEntitiesMember 2018-12-31 0001110805 ns:NustarPipelineOperatingPartnershipLpMember srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-12-31 0001110805 ns:NustarEnergyLpMember ns:ParentCompanyGuarantorMember srt:ReportableLegalEntitiesMember 2018-12-31 0001110805 ns:NustarLogisticsLpMember srt:SubsidiaryIssuerMember srt:ReportableLegalEntitiesMember 2019-03-31 0001110805 srt:ConsolidationEliminationsMember 2019-03-31 0001110805 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-12-31 0001110805 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2019-03-31 0001110805 ns:NustarPipelineOperatingPartnershipLpMember srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2019-03-31 0001110805 ns:UnsecuredTermLoanCreditAgreementMember us-gaap:SubsequentEventMember 2020-04-21 0001110805 ns:UnsecuredTermLoanCreditAgreementMember us-gaap:SubsequentEventMember 2020-04-21 2020-04-21 iso4217:USD xbrli:shares iso4217:USD xbrli:shares xbrli:pure


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 March 31, 2020
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
  _________________________________________
nslogoa04.jpg
NuStar Energy L.P.
(Exact name of registrant as specified in its charter)
  _________________________________________
Delaware
 
74-2956831
(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 class
 
Trading Symbol(s)
 
Name of each exchange on which registered
Common units
 
NS
 
New York Stock Exchange
Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units
 
NSprA
 
New York Stock Exchange
Series B Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units
 
NSprB
 
New York Stock Exchange
Series C Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units
 
NSprC
 
New 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 filer
 
þ
Accelerated filer
 
 
 
 
 
 
 
Non-accelerated filer
 
Smaller 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 April 30, 2020 was 109,194,144.




NUSTAR ENERGY L.P.
FORM 10-Q
TABLE OF CONTENTS
 
 
 
 
 
Item 1.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Item 2.
 
 
 
Item 3.
 
 
 
Item 4.
 
 
 
 
 
 
Item 1A.
 
 
 
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)
 
March 31,
2020
 
December 31,
2019
Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
17,694

 
$
16,192

Accounts receivable, net of allowance for doubtful accounts of $61 and $72
as of March 31, 2020 and December 31, 2019, respectively
144,667

 
152,530

Inventories
10,720

 
12,393

Prepaid and other current assets
14,775

 
21,933

Total current assets
187,856

 
203,048

Property, plant and equipment, at cost
6,224,005

 
6,187,144

Accumulated depreciation and amortization
(2,118,364
)
 
(2,068,165
)
Property, plant and equipment, net
4,105,641

 
4,118,979

Intangible assets, net
668,776

 
681,632

Goodwill
780,853

 
1,005,853

Other long-term assets, net
134,694

 
176,480

Total assets
$
5,877,820

 
$
6,185,992

Liabilities, Mezzanine Equity and Partners’ Equity
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
74,032

 
$
109,834

Short-term debt and current portion of finance leases
14,869

 
10,046

Current portion of long-term debt

 
452,367

Accrued interest payable
40,605

 
37,925

Accrued liabilities
104,177

 
104,285

Taxes other than income tax
8,729

 
12,781

Income tax payable
5,450

 
4,325

Total current liabilities
247,862

 
731,563

Long-term debt, less current portion
3,374,747

 
2,934,918

Deferred income tax liability
10,673

 
12,427

Other long-term liabilities
149,887

 
148,939

Total liabilities
3,783,169

 
3,827,847

 
 
 
 
Commitments and contingencies (Note 6)

 

 
 
 
 
Series D preferred limited partners (23,246,650 preferred units outstanding as of
March 31, 2020 and December 31, 2019) (Note 8)
586,837

 
581,935

 
 
 
 
Partners’ equity (Note 9):
 
 
 
Preferred limited partners
 
 
 
Series A (9,060,000 units outstanding as of March 31, 2020 and December 31, 2019)
218,307

 
218,307

Series B (15,400,000 units outstanding as of March 31, 2020 and December 31, 2019)
371,476

 
371,476

Series C (6,900,000 units outstanding as of March 31, 2020 and December 31, 2019)
166,518

 
166,518

Common limited partners (109,194,072 and 108,527,806 common units outstanding
as of March 31, 2020 and December 31, 2019, respectively)
855,722

 
1,087,805

Accumulated other comprehensive loss
(104,209
)
 
(67,896
)
Total partners’ equity
1,507,814

 
1,776,210

Total liabilities, mezzanine equity and partners’ equity
$
5,877,820

 
$
6,185,992

See Condensed Notes to Consolidated Financial Statements.

3



NUSTAR ENERGY L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Unaudited, Thousands of Dollars, Except Unit and Per Unit Data)
 
Three Months Ended March 31,
 
2020
 
2019
Revenues:
 
 
 
Service revenues
$
316,746

 
$
259,027

Product sales
76,045

 
88,799

Total revenues
392,791

 
347,826

Costs and expenses:
 
 
 
Costs associated with service revenues:
 
 
 
Operating expenses (excluding depreciation and amortization expense)
100,182

 
95,411

Depreciation and amortization expense
68,061


64,818

Total costs associated with service revenues
168,243

 
160,229

Cost of product sales
67,450


86,182

Goodwill impairment loss
225,000

 

General and administrative expenses (excluding depreciation and amortization expense)
22,971

 
25,691

Other depreciation and amortization expense
2,186

 
2,119

Total costs and expenses
485,850

 
274,221

Operating (loss) income
(93,059
)
 
73,605

Interest expense, net
(47,494
)
 
(44,291
)
Other (expense) income, net
(6,489
)
 
791

(Loss) income from continuing operations before income tax expense
(147,042
)
 
30,105

Income tax expense
599

 
1,182

(Loss) income from continuing operations
(147,641
)
 
28,923

Loss from discontinued operations, net of tax

 
(306,786
)
Net loss
$
(147,641
)
 
$
(277,863
)
 
 
 
 
Basic net loss per common unit:
 
 
 
Continuing operations
$
(1.68
)
 
$
(0.06
)
Discontinued operations

 
(2.85
)
Total (Note 10)
$
(1.68
)
 
$
(2.91
)
 
 
 
 
Basic weighted-average common units outstanding
108,897,400

 
107,531,619

 
 
 
 
Comprehensive loss
$
(183,954
)
 
$
(282,689
)
See Condensed Notes to Consolidated Financial Statements.

4



NUSTAR ENERGY L.P. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, Thousands of Dollars)
 
Three Months Ended March 31,
 
2020
 
2019
Cash Flows from Operating Activities:
 
 
 
Net loss
$
(147,641
)
 
$
(277,863
)
Adjustments to reconcile net loss to net cash provided by operating activities:
 
 
 
Depreciation and amortization expense
70,247

 
74,406

Amortization of unit-based compensation
2,585

 
2,982

Amortization of debt related items
1,462

 
1,310

Asset and goodwill impairment losses
225,000

 
328,440

Deferred income tax benefit
(999
)
 
(847
)
Changes in current assets and current liabilities (Note 11)
(9,785
)
 
(33,403
)
Decrease (increase) in other long-term assets
2,303

 
(74
)
Increase in other long-term liabilities
948

 
9,275

Other, net
7,308

 
(658
)
Net cash provided by operating activities
151,428

 
103,568

Cash Flows from Investing Activities:
 
 
 
Capital expenditures
(56,283
)
 
(159,429
)
Change in accounts payable related to capital expenditures
(15,706
)
 
19,401

Proceeds from sale or disposition of assets
565

 
79

Net cash used in investing activities
(71,424
)
 
(139,949
)
Cash Flows from Financing Activities:
 
 
 
Proceeds from long-term debt borrowings
135,200

 
230,000

Proceeds from short-term debt borrowings
52,000

 
81,500

Long-term debt repayments
(104,615
)
 
(63,600
)
Short-term debt repayments
(47,500
)
 
(94,500
)
Distributions to preferred unitholders
(30,423
)
 
(30,423
)
Distributions to common unitholders
(65,169
)
 
(64,367
)
Payment of tax withholding for unit-based compensation
(8,820
)
 
(6,366
)
Decrease in cash book overdrafts
(1,194
)
 
(3,608
)
Other, net
(6,568
)
 
(1,519
)
Net cash (used in) provided by financing activities
(77,089
)
 
47,117

Effect of foreign exchange rate changes on cash
(1,403
)
 
154

Net increase in cash, cash equivalents and restricted cash
1,512

 
10,890

Cash, cash equivalents and restricted cash as of the beginning of the period
24,980

 
13,644

Cash, cash equivalents and restricted cash as of the end of the period
$
26,492

 
$
24,534

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 March 31, 2020 and 2019
 
(Unaudited, Thousands of Dollars, Except Per Unit Data)
 
 
Limited Partners
 
 
 
 
 
Mezzanine Equity
 
 
 
Preferred
 
Common
 
Accumulated
Other
Comprehensive
Loss
 
Total Partners’ Equity
(Note 9)
 
Series D Preferred Limited Partners (Note 8)
 
Total
Balance as of January 1, 2020
$
756,301

 
$
1,087,805

 
$
(67,896
)
 
$
1,776,210

 
$
581,935

 
$
2,358,145

Net income (loss)
16,033

 
(178,064
)
 

 
(162,031
)
 
14,390

 
(147,641
)
Other comprehensive loss

 

 
(36,313
)
 
(36,313
)
 

 
(36,313
)
Distributions to partners:
 
 
 
 
 
 

 
 
 

Series A, B and C preferred
(16,033
)
 

 

 
(16,033
)
 

 
(16,033
)
Common ($0.60 per unit)

 
(65,169
)
 

 
(65,169
)
 

 
(65,169
)
Series D preferred

 

 

 

 
(14,390
)
 
(14,390
)
Unit-based compensation

 
16,051

 

 
16,051

 

 
16,051

Series D preferred unit accretion

 
(4,902
)
 

 
(4,902
)
 
4,902

 

Other

 
1

 

 
1

 

 
1

Balance as of March 31, 2020
$
756,301

 
$
855,722

 
$
(104,209
)
 
$
1,507,814

 
$
586,837

 
$
2,094,651

 
 
 
 
 
 
 
 
 
 
 
 
Balance as of January 1, 2019
$
756,301

 
$
1,556,308

 
$
(54,878
)
 
$
2,257,731

 
$
563,992

 
$
2,821,723

Net income (loss)
16,033

 
(308,286
)
 

 
(292,253
)
 
14,390

 
(277,863
)
Other comprehensive loss

 

 
(4,826
)
 
(4,826
)
 

 
(4,826
)
Distributions to partners:
 
 
 
 
 
 

 
 
 


Series A, B and C preferred
(16,033
)
 

 

 
(16,033
)
 

 
(16,033
)
Common ($0.60 per unit)

 
(64,367
)
 

 
(64,367
)
 

 
(64,367
)
Series D preferred

 

 

 

 
(14,390
)
 
(14,390
)
Unit-based compensation

 
13,540

 

 
13,540

 

 
13,540

Series D Preferred Unit accretion

 
(4,302
)
 

 
(4,302
)
 
4,302

 

Other

 
(813
)
 

 
(813
)
 
(1
)
 
(814
)
Balance as of March 31, 2019
$
756,301

 
$
1,192,080

 
$
(59,704
)
 
$
1,888,677

 
$
568,293

 
$
2,456,970

See Condensed Notes to Consolidated Financial Statements.

6



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 publicly held Delaware limited partnership engaged in the transportation of petroleum products and anhydrous ammonia, and the terminalling, storage and marketing of petroleum products. 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 Developments
COVID-19 and OPEC+ Actions. In March 2020, the World Health Organization declared the coronavirus, or COVID-19, a pandemic as the illness spread across the globe. COVID-19 has had a severe impact on global economic activity, as government authorities have instituted stay-home orders and other measures to reduce the spread of COVID-19, and billions of people around the world have ceased their usual day-to-day activities. The scale of this decrease has significantly reduced demand for petroleum products. In March, the negative economic impact of the COVID-19 pandemic and demand deterioration was exacerbated by disputes among the Organization of Petroleum Exporting Countries and other oil producing nations
(OPEC+) regarding their agreed production rates that contributed to a significant over-supply in crude, resulting in a sharp decline in, and increase in the volatility of, crude oil prices.
 
The effects of the COVID-19 pandemic, combined with actions by OPEC+, led to a decline in our unit price and market capitalization, and we recorded a goodwill impairment charge of $225.0 million associated with our crude oil pipelines in the first quarter of 2020. Please refer to Note 3 for additional 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. The property damage was isolated, and in the fourth quarter of 2019, we incurred losses of $5.4 million, which represent the aggregate amount of our deductibles under various insurance policies. We received insurance proceeds of $11.9 million in the first quarter of 2020 and $13.1 million in April 2020. Gains from business interruption insurance of $3.1 million for the three months ended March 31, 2020 are included in “Operating expenses” in the condensed consolidated statement of comprehensive loss. Insurance proceeds relate to cleanup costs and business interruption and are therefore included in “Cash flows from operating activities” in the consolidated statement of cash flows. We believe we have adequate insurance to offset additional costs in excess of the insurance deductibles.

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 three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. 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, 2019.

We have reclassified certain previously reported amounts in the consolidated financial statements and notes to conform to current-period presentation. In the second quarter of 2019, we determined the St. Eustatius terminal and bunkering operations sold on July 29, 2019 met the requirements to be reported as discontinued operations, and as a result, we reclassified certain revenues and expenses to discontinued operations for all applicable periods presented, as further discussed in Note 3.


7

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

2. NEW ACCOUNTING PRONOUNCEMENTS

Reference Rate Reform
In March 2020, the Financial Accounting Standards Board (FASB) issued guidance intended to provide relief to companies impacted by reference rate reform. The amended guidance provides optional expedients and exceptions for applying generally accepted accounting principles 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. We adopted the guidance for the quarter ended March 31, 2020 on a prospective basis. The guidance did not have an impact on our financial position, results of operations or disclosures at transition, but we will continue to evaluate its impact on contracts and hedging relationships entered into or modified on or before December 31, 2022.

Financial Disclosures about Guarantors and Issuers of Guaranteed Securities
In March 2020, the Securities and Exchange Commission (SEC) issued final rules regarding presentation of financial information for guarantor subsidiaries. The final rules reduce the number of periods for which guarantor financial information is required and allow presentation of summarized financial information in lieu of separate financial statements. The guidance is effective for fiscal periods ending after January 4, 2021, with early adoption permitted. We are currently evaluating whether we will adopt these provisions early. We expect the guidance will reduce our disclosures related to guarantor financial information.

Simplifying the Accounting for Income Taxes
In December 2019, the FASB issued amended guidance that simplifies the accounting for income taxes, including enacted changes in tax laws in interim periods. The guidance is effective for annual and interim periods beginning after December 15, 2020, with early adoption permitted. These provisions should be applied retrospectively, prospectively, or on a modified retrospective basis depending on the area affected by the amended guidance. We are currently evaluating the impact of this amended guidance on our financial position, results of operations or disclosures and whether we will adopt these provisions early.

Cloud Computing Arrangements
In August 2018, the FASB issued guidance addressing a customer’s accounting for implementation costs incurred in a cloud computing arrangement (CCA) that is considered a service contract. The new guidance specifies that an entity would apply the capitalization criteria for implementation costs related to internal-use software to determine which implementation costs related to a CCA that is a service contract should be capitalized and which should be expensed. The amendments also require that capitalized implementation costs be classified in the same balance sheet line item as prepayments related to the CCA and, generally, amortized on a straight-line basis over the term of the CCA. Amortization of capitalized implementation costs should be presented in the same income statement line item as CCA service fees, and cash flows for capitalized implementation costs should be presented consistently with those related to the CCA service. The guidance is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. Prospective adoption for eligible costs incurred on or after the date of adoption or retrospective adoption is permitted. We adopted the guidance on January 1, 2020 on a prospective basis, and the guidance did not have a material impact on our financial position, results of operations or disclosures.

Disclosures for Defined Benefit Plans
In August 2018, the FASB issued amended guidance that makes minor changes to the disclosure requirements for employers that sponsor defined benefit pension and/or other postretirement benefit plans. The guidance is effective for annual periods beginning after December 15, 2020, with early adoption permitted, using a retrospective approach. We are currently evaluating whether we will adopt these provisions early, but we do not expect the guidance to have a material impact on our disclosures.

Credit Losses
In June 2016, the FASB issued amended guidance that replaces the incurred loss model for the measurement of financial assets with the current expected credit losses (CECL) model. Under the CECL model, entities are required to consider a broader range of information to estimate expected credit losses, including historical experience, current conditions, and reasonable and supportable forecasts, which may result in earlier recognition of credit losses. The changes are effective for annual and interim periods beginning after December 15, 2019, and amendments should be applied using a modified retrospective approach. We adopted the amended guidance on January 1, 2020, and the amended guidance did not have a material impact on our financial position, results of operations or disclosures at the transition date.

8

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

3. IMPAIRMENTS AND DISCONTINUED OPERATIONS

2020 Impairment
In March 2020, the COVID-19 pandemic and actions taken by OPEC+ resulted in severe disruptions in the capital and commodities markets, which led to significant decline in our unit price. As a result, our equity market capitalization fell significantly. The decline in crude oil prices and demand for petroleum products also led to a decline in expected earnings from some of our goodwill reporting units. These factors and others related to COVID-19 and OPEC+ caused us to conclude there were triggering events that occurred in March that required us to perform a goodwill impairment test as of March 31, 2020.

The decline in our equity market capitalization resulted in a decline in the estimated fair value of the crude oil pipelines reporting unit. Therefore, we recognized a goodwill impairment charge of $225.0 million in the first quarter of 2020, which is reported in the pipeline segment. Our assessment did not identify any other reporting units at risk of a goodwill impairment.

We calculated the estimated fair value of each of our reporting units using a weighted-average of values determined from an income approach and a market approach. The income approach involves estimating the fair value of each reporting unit by discounting its estimated future cash flows using a discount rate that would be consistent with a market participant’s assumption. The market approach bases the fair value measurement on information obtained from observed stock prices of public companies and recent merger and acquisition transaction data of comparable entities.
In order to estimate the fair value of goodwill, management must make certain estimates and assumptions that affect the total fair value of the reporting unit including, among other things, an assessment of market conditions, projected cash flows, discount rates and growth rates. Management’s estimates of projected cash flows related to the reporting unit include, but are not limited to, future earnings of the reporting unit, assumptions about the use or disposition of the asset, estimated remaining life of the asset, and future expenditures necessary to maintain the asset’s existing service potential. The assumptions in the fair value measurement reflect the current market environment, industry-specific factors and company-specific factors.

The decline in expected earnings from certain of our long-lived assets was also an indicator that the carrying values of these long-lived assets may not be recoverable. Prior to performing the goodwill impairment test, we tested these long-lived assets for recoverability and determined they were fully recoverable as of March 31, 2020.

Management’s estimates are based on numerous assumptions about future operations and market conditions, which we believe to be reasonable but are inherently uncertain. The uncertainties underlying our assumptions and estimates could differ significantly from actual results, including with respect to the duration and severity of the COVID-19 pandemic. In the current volatile economic environment and to the extent conditions further deteriorate, we may identify additional triggering events that may require future evaluations of the recoverability of the carrying value of our long-lived assets and goodwill, which could result in further impairment charges that could be material to our results of operations.

2019 Impairments and Discontinued Operations
On July 29, 2019, we sold our St. Eustatius terminal and bunkering operations (the St. Eustatius Operations) for net proceeds of approximately $230.0 million (the St. Eustatius Disposition). During the second quarter of 2019, we determined the assets and liabilities associated with the St. Eustatius Operations met the criteria to be classified as held for sale, and as a result, we reclassified certain revenues and expenses to discontinued operations for all applicable periods presented. We determined the St. Eustatius Operations and the European operations, which we sold on November 30, 2018, met the requirements to be reported as discontinued operations since the St. Eustatius Disposition and the sale of the European operations together represented a strategic shift that would have a major impact on our operations and financial results. These sales were part of our plan to improve our debt metrics and partially fund capital projects to grow our core business in North America. We previously reported the terminal operations in our storage segment and the bunkering operations in our fuels marketing segment.

On January 28, 2019, the U.S. Department of the Treasury’s Office of Foreign Assets Control added Petroleos de Venezuela, S.A. (PDVSA), at the time a customer at the St. Eustatius facility, to its List of Specially Designated Nationals and Blocked Persons (the SDN List). The inclusion of PDVSA on the SDN List required us to wind down our contracts with PDVSA. Prior to winding down such contracts, PDVSA was the St. Eustatius terminal’s largest customer. The effect of the sanctions issued against PDVSA, combined with the progression in the sale negotiations that occurred during March 2019, resulted in triggering events that caused us to evaluate the long-lived assets and goodwill associated with the St. Eustatius terminal and bunkering operations for potential impairment.

With respect to the terminal operations long-lived assets, our estimates of future expected cash flows included the possibility of a near-term sale, as well as continuing to operate the terminal. The carrying value of the terminal’s long-lived assets exceeded

9

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

our estimate of the total expected cash flows, indicating the long-lived assets were potentially impaired. To determine an impairment amount, we estimated the fair value of the long-lived assets for comparison to the carrying amount of those assets. Our estimate of the fair value considered the expected sales price as well as estimates generated from income and market approaches using a market participant’s assumptions. The estimated fair values resulting from the market and income approaches were consistent with the expected sales price. Therefore, we concluded that the estimated sales price, which was less than the carrying amount of the long-lived assets, represented the best estimate of fair value at March 31, 2019, and we recorded a long-lived asset impairment charge of $297.3 million in the first quarter of 2019 to reduce the carrying value of the assets to their estimated fair value. We recorded an additional impairment charge of $8.4 million in the second quarter of 2019, mainly due to additional capital expenditures incurred in the second quarter.

With respect to the goodwill in the Statia Bunkering reporting unit, which consisted of our bunkering operations at the St. Eustatius terminal facility, we estimated the fair value based on the expected sales price discussed above, which is inclusive of the bunkering operations. As a result, we concluded the goodwill was impaired. Consistent with FASB’s amended goodwill impairment guidance, which we adopted in the first quarter of 2019, we measured the goodwill impairment as the difference between the reporting unit’s carrying value and its fair value. Therefore, we recognized a goodwill impairment charge of $31.1 million in the first quarter of 2019 to reduce the goodwill to $0 for the Statia Bunkering reporting unit.

The impairment charges are included in “Loss from discontinued operations, net of tax” on the condensed consolidated statement of comprehensive loss.

Discontinued Operations
The following is a reconciliation of the major classes of line items included in “Loss from discontinued operations, net of tax” on the condensed consolidated statement of comprehensive loss:
 
Three Months Ended March 31, 2019
 
(Thousands of Dollars)
Revenues
$
138,643

Costs and expenses:
 
Cost of revenues
116,602

Impairment losses
328,440

General and administrative expenses (excluding depreciation and amortization expense)
305

Total costs and expenses
445,347

Operating loss
(306,704
)
Interest income, net
23

Other expense, net
(4
)
Loss from discontinued operations before income tax expense
(306,685
)
Income tax expense
101

Loss from discontinued operations, net of tax
$
(306,786
)


10

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

The consolidated statement of cash flows has not been adjusted to separately disclose cash flows related to discontinued operations. The following table presents selected cash flow information associated with our discontinued operations:
 
Three Months Ended March 31, 2019
 
(Thousands of Dollars)
Capital expenditures
$
(8,935
)
 
 
Significant noncash operating activities:
 
Depreciation and amortization expense
$
7,469

Asset impairment loss
$
297,317

Goodwill impairment loss
$
31,123



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:
 
2020
 
2019
 
Contract Assets
 
Contract Liabilities
 
Contract Assets
 
Contract Liabilities
 
(Thousands of Dollars)
Balances as of January 1:
 
 
 
 
 
 
 
Current portion
$
2,140

 
$
(21,083
)
 
$
2,066

 
$
(21,579
)
Noncurrent portion
1,003

 
(40,289
)
 
539

 
(38,945
)
Held for sale

 

 

 
(25,357
)
Total
3,143

 
(61,372
)
 
2,605

 
(85,881
)
 
 
 
 
 
 
 
 
Activity:
 
 
 
 
 
 
 
Additions
1,357

 
(11,883
)
 
941

 
(11,094
)
Transfer to accounts receivable
(1,289
)
 

 
(1,272
)
 

Transfer to revenues, including amounts
reported in discontinued operations

 
10,765

 

 
34,714

Total
68

 
(1,118
)
 
(331
)
 
23,620

 
 
 
 
 
 
 
 
Balances as of March 31:
 
 
 
 
 
 
 
Current portion
1,812

 
(20,421
)
 
1,381

 
(21,798
)
Noncurrent portion
1,399

 
(42,069
)
 
893

 
(40,463
)
Total
$
3,211

 
$
(62,490
)
 
$
2,274

 
$
(62,261
)


As previously discussed in Note 3, the inclusion of PDVSA on the SDN List prevented us from providing services to PDVSA unless the sanctions were lifted or otherwise modified. As a result, in the first quarter of 2019 we accelerated the recognition of revenue totaling $16.3 million, representing the amount remaining from a third quarter 2018 settlement we entered into with PDVSA.


11

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

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 March 31, 2020 (in thousands of dollars):
2020 (remaining)
 
$
407,852

2021
 
410,418

2022
 
332,087

2023
 
251,772

2024
 
185,094

Thereafter
 
274,160

Total
 
$
1,861,383



Our contractually committed revenue, for purposes of the tabular presentation above, is generally limited to customer service contracts that have fixed pricing and fixed volume terms and conditions, generally including contracts with payment obligations for take-or-pay minimum volume commitments.

Disaggregation of Revenues
The following table disaggregates our revenues:
 
Three Months Ended March 31,
 
2020
 
2019
 
(Thousands of Dollars)
Pipeline segment:
 
 
 
Crude oil pipelines
$
91,722

 
$
68,478

Refined products and ammonia pipelines (excluding lessor revenues)
103,134

 
85,106

Total pipeline segment revenues from contracts with customers
194,856

 
153,584

Lessor revenues
825

 
2,667

Total pipeline segment revenues
195,681

 
156,251

 
 
 
 
Storage segment:
 
 
 
Throughput terminals
38,723

 
21,686

Storage terminals (excluding lessor revenues)
74,166

 
71,621

Total storage segment revenues from contracts with customers
112,889

 
93,307

Lessor revenues
10,328

 
10,193

Total storage segment revenues
123,217

 
103,500

 
 
 
 
Fuels marketing segment:
 
 
 
Revenues from contracts with customers
73,902

 
88,079

 
 
 
 
Consolidation and intersegment eliminations
(9
)
 
(4
)
 
 
 
 
Total revenues
$
392,791

 
$
347,826




12

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

5. DEBT

Revolving Credit Agreement
On March 6, 2020, NuStar Logistics amended its revolving credit agreement (the Revolving Credit Agreement) to, among other things, extend the maturity date from October 29, 2021 to October 27, 2023, reduce the total amount available for borrowing from $1.2 billion to $1.0 billion and increase the rates included in the definition of Applicable Rate contained in the Revolving Credit Agreement. On April 6, 2020, NuStar Logistics amended the Revolving Credit Agreement to allow for certain transactions related to the GoZone Bonds, as defined below.

As of March 31, 2020, we had $500.0 million outstanding under the Revolving Credit Agreement. The Revolving Credit Agreement provides for U.S. dollar borrowings, which bear interest, at our option, based on an alternative base rate or a LIBOR-based rate. The interest rate on the Revolving Credit Agreement is subject to adjustment if our debt rating is downgraded (or upgraded) by certain credit rating agencies. In March 2020, S&P Global Ratings changed our rating outlook from stable to negative, and back to stable in April 2020. In April 2020, Fitch, Inc. downgraded our credit rating from BB to BB- and placed our rating on Rating Watch Negative and Moody’s Investor Service Inc. placed our rating under review for downgrade. These actions did not impact the interest rate on our Revolving Credit Agreement, which is the only debt arrangement with an interest rate that is subject to adjustment if our debt rating is downgraded (or upgraded) by certain credit rating agencies. As of March 31, 2020, our weighted-average interest rate related to borrowings under the Revolving Credit Agreement was 3.0%.

For the rolling period of four quarters ending March 31, 2020, the consolidated debt coverage ratio (as defined in the Revolving Credit Agreement) could not 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. The maximum consolidated debt coverage ratio and minimum consolidated interest coverage ratio requirements may limit the amount we can borrow under the Revolving Credit Agreement to an amount less than the total amount available for borrowing. As of March 31, 2020, we had $495.9 million available for borrowing, and 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 $125.0 million receivables financing agreement with third-party lenders (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 Finance’s sole activity consists of purchasing receivables from NuStar Energy’s wholly owned subsidiaries that participate in the Securitization Program and providing these receivables as collateral for NuStar Finance’s revolving borrowings under the Securitization Program. 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.

Borrowings by NuStar Finance under the Receivables Financing Agreement bear interest at the applicable bank rate, as defined under the Receivables Financing Agreement. The weighted average interest rate related to outstanding borrowings under the Securitization Program as of March 31, 2020 was 1.8%. As of March 31, 2020, $105.9 million of our accounts receivable is included in the Securitization Program. The amount of borrowings outstanding under the Receivables Financing Agreement totaled $67.8 million as of March 31, 2020, which is included in “Long-term debt, less current portion” on the consolidated balance sheet.
Gulf Opportunity Zone Revenue Bonds
In 2008, 2010 and 2011, the Parish of St. James, Louisiana issued Revenue Bonds Series 2008, Series 2010, Series 2010A, Series 2010B and Series 2011 associated with our St. James terminal expansions pursuant to the Gulf Opportunity Zone Act of 2005 (collectively, GoZone Bonds) for an aggregate $365.4 million. The interest rates on these bonds are currently based on a weekly tax-exempt bond market interest rate. Following the issuances, the proceeds were deposited with a trustee and were disbursed to us upon our request for reimbursement of expenditures related to our St. James terminal expansions. At the option of NuStar Logistics, during any period when the bonds bear interest at a daily or weekly rate, the GoZone Bonds may be redeemed in whole or in part on any interest payment date for 100% of the outstanding principal amount plus accrued interest to the redemption date. On March 4, 2020, NuStar Logistics repaid $43.3 million of GoZone Bonds with amounts that had not been used on our St. James terminal expansions and remained in trust. In addition, the holders of the GoZone Bonds may periodically require that the GoZone Bonds be repurchased, in whole or in part, requiring us to remarket the bonds.


13

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

Current Maturities
We expect to fund senior note maturities in 2020 and 2021 by utilizing senior note issuances in the capital markets, borrowings under our Revolving Credit Agreement or the Term Loan we entered into in April 2020, which is defined and described in Note 14. Therefore, the senior note maturities in 2020 and 2021 are classified as long-term debt. Although the Term Loan provides us the financial flexibility to fund these maturities in the near term, we plan to continue to monitor the debt capital markets for opportunities to raise additional capital at favorable terms.

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 $3.7 million for contingent losses as of March 31, 2020 and December 31, 2019. 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.

7. DERIVATIVES AND FAIR VALUE MEASUREMENTS

Derivative Instruments
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.

Interest Rate Risk. We are a party to certain interest rate swap agreements that terminate in September 2020 to manage our exposure to changes in interest rates, which consist of forward-starting interest rate swap agreements related to a forecasted debt issuance in 2020. We entered into these swaps in order to hedge the risk of fluctuations in the required interest payments attributable to changes in the benchmark interest rate during the period from the effective date of the swap to the issuance of the forecasted debt. Under the terms of the swaps, we pay a weighted-average fixed rate of 2.8% and receive a rate based on the three-month USD LIBOR. These swaps qualify as cash flow hedges, and we designate them as such. We record mark-to-market adjustments as a component of “Accumulated other comprehensive loss” (AOCI), and the amount in AOCI will be recognized in “Interest expense, net” as the forecasted interest payments occur or if the interest payments are probable not to occur. As of March 31, 2020 and December 31, 2019, the aggregate notional amount of forward-starting interest rate swaps totaled $250.0 million.

The fair values of our interest rate swap agreements included in “Accrued liabilities” on our consolidated balance sheets were $49.0 million and $19.2 million as of March 31, 2020 and December 31, 2019, respectively.

Our forward-starting interest rate swaps had the following impact on earnings:
 
Three Months Ended March 31,
 
2020
 
2019
 
(Thousands of Dollars)
Loss recognized in other comprehensive income (loss) on derivative
$
(29,830
)
 
$
(6,808
)
Loss reclassified from AOCI into interest expense, net
$
(647
)
 
$
(1,078
)


As of March 31, 2020, we expect to reclassify a loss of $2.2 million to “Interest expense, net” within the next twelve months associated with unwound forward-starting interest rate swaps.

Fair Value Measurements
We segregate the inputs used in measuring fair value into three levels: Level 1, defined as observable inputs, such as quoted prices for identical assets or liabilities in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in markets that are not active; and Level 3, defined as unobservable inputs for which

14

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

little or no market data exists. We consider counterparty credit risk and our own credit risk in the determination of all estimated fair values.

Recurring Fair Value Measurements. Because we estimate the fair value of our forward-starting interest rate swaps using discounted cash flows, which use observable inputs such as time to maturity and market interest rates, we include interest rate swaps in Level 2 of the fair value hierarchy.

Fair Value of Financial Instruments
We recognize cash equivalents, receivables, payables and debt in our consolidated balance sheets at their carrying amounts. The fair values of these financial instruments, except for long-term debt other than finance leases, approximate their carrying amounts. The estimated fair values and carrying amounts of long-term debt, including the current portion and excluding finance leases, were as follows:
 
March 31, 2020
 
December 31, 2019
 
(Thousands of Dollars)
Fair value
$
2,688,613

 
$
3,442,001

Carrying amount
$
3,319,248

 
$
3,331,839



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.

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 distribution rate on the Series D Preferred Units is: (i) 9.75% per annum (or $0.619 per unit per distribution period) for the first two years (beginning with the September 17, 2018 distribution); (ii) 10.75% per annum (or $0.682 per unit per distribution period) for years three through five; and (iii) the greater of 13.75% per annum (or $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 April 2020, our board of directors declared distributions of $0.619 per Series D Preferred Unit to be paid on June 15, 2020.


15

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

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 as follows (until the distribution rate changes to a floating rate):

Units
 
Fixed Distribution Rate Per Unit Per Quarter
 
Fixed Distribution
Per Quarter
 
Date at Which Distribution
Rate Becomes Floating
 
 
 
 
(Thousands of Dollars)
 
 
Series A Preferred Units
 
$
0.53125

 
$
4,813

 
December 15, 2021
Series B Preferred Units
 
$
0.47657

 
$
7,339

 
June 15, 2022
Series C Preferred Units
 
$
0.56250

 
$
3,881

 
December 15, 2022


In April 2020, our board of directors declared distributions with respect to the Series A, B and C Preferred Units to be paid on June 15, 2020.

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.

The following table summarizes information about quarterly cash distributions declared for our common limited partners:
Quarter Ended
 
Cash
Distributions
Per Unit
 
Total Cash
Distributions
 
Record Date
 
Payment Date
 
 
 
 
(Thousands of Dollars)
 
 
 
 
March 31, 2020
 
$
0.40

 
$
43,730

 
May 11, 2020
 
May 15, 2020
December 31, 2019
 
$
0.60

 
$
65,128

 
February 10, 2020
 
February 14, 2020


Accumulated Other Comprehensive Income (Loss)
The balance of and changes in the components included in AOCI were as follows:
 
Foreign
Currency
Translation
 
Cash Flow
Hedges
 
Pension and
Other
Postretirement
Benefits
 
Total
 
(Thousands of Dollars)
Balance as of January 1, 2020
$
(43,772
)
 
$
(16,124
)
 
$
(8,000
)
 
$
(67,896
)
Other comprehensive (loss) income:
 
 
 
 
 
 
 
Other comprehensive loss before reclassification adjustments
(6,828
)
 
(29,830
)
 

 
(36,658
)
Net gain on pension costs reclassified into other income, net

 

 
(305
)
 
(305
)
Net loss on cash flow hedges reclassified into interest
expense, net

 
647

 

 
647

Other

 

 
3

 
3

Other comprehensive loss
(6,828
)
 
(29,183
)
 
(302
)
 
(36,313
)
Balance as of March 31, 2020
$
(50,600
)
 
$
(45,307
)
 
$
(8,302
)
 
$
(104,209
)


16

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

10. NET INCOME (LOSS) PER COMMON UNIT

Basic net income (loss) per common unit is determined pursuant to the two-class method. Under this method, all earnings are allocated to our limited partners and participating securities based on their respective rights to receive distributions earned during the period. Participating securities include restricted units awarded under our long-term incentive plans. We compute basic net income (loss) per common unit by dividing net income (loss) attributable to common units by the weighted-average number of common units outstanding during the period.

Diluted net income (loss) per common unit is computed by dividing net income (loss) attributable to common units by the sum of (i) the weighted average number of common units outstanding during the period and (ii) the effect of dilutive potential common units outstanding during the period. Dilutive potential common units may include contingently issuable performance unit awards and the Series D Preferred Units.

The Series D Preferred Units are convertible into common units at the option of the holder at any time on or after June 29, 2028. As such, we calculated the dilutive effect of the Series D Preferred Units using the if-converted method. The effect of the assumed conversion of the Series D Preferred Units outstanding as of the end of each period presented was antidilutive; therefore, we did not include such conversion in the computation of diluted net income (loss) per common unit.

The following table details the calculation of net loss per common unit:
 
Three Months Ended March 31,
 
2020
 
2019
 
(Thousands of Dollars, Except Unit and Per Unit Data)
Net loss
$
(147,641
)
 
$
(277,863
)
Distributions to preferred limited partners
(30,423
)
 
(30,423
)
Distributions to common limited partners
(43,730
)
 
(64,690
)
Distribution equivalent rights to restricted units
(506
)
 
(643
)
Distributions in excess of loss
$
(222,300
)

$
(373,619
)
 
 
 
 
Distributions to common limited partners
$
43,730

 
$
64,690

Allocation of distributions in excess of loss
(222,300
)

(373,619
)
Series D Preferred Unit accretion
(4,902
)
 
(4,302
)
Net loss attributable to common units
$
(183,472
)
 
$
(313,231
)
 
 
 
 
Basic weighted-average common units outstanding
108,897,400

 
107,531,619

 
 
 
 
Basic net loss per common unit
$
(1.68
)
 
$
(2.91
)



17

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

11. STATEMENTS OF CASH FLOWS

Changes in current assets and current liabilities were as follows:
 
Three Months Ended March 31,
 
2020
 
2019
 
(Thousands of Dollars)
Decrease (increase) in current assets:
 
 
 
Accounts receivable
$
7,778

 
$
(15,028
)
Inventories
1,648

 
(2,302
)
Other current assets
7,007

 
4,191

Increase (decrease) in current liabilities:
 
 
 
Accounts payable
(18,082
)
 
17,851

Accrued interest payable
2,680

 
(4,948
)
Accrued liabilities
(6,804
)
 
(30,908
)
Taxes other than income tax
(5,137
)
 
(2,954
)
Income tax payable
1,125

 
695

Changes in current assets and current liabilities
$
(9,785
)
 
$
(33,403
)

The above changes in current assets and current liabilities differ from changes between amounts reflected in the applicable consolidated balance sheets due to:
the change in the amount accrued for capital expenditures;
the effect of foreign currency translation;
changes in the fair values of our interest rate swap agreements; and
the recognition of lease liabilities upon the adoption of ASC Topic 842.

Cash flows related to interest and income taxes were as follows:
 
Three Months Ended March 31,
 
2020
 
2019
 
(Thousands of Dollars)
Cash paid for interest, net of amount capitalized
$
43,172