---

Terminal operator, asphalt refiner and bunker supplier, NuStar Energy L.P., reports that fuels marketing sales declined by 18.5 percent in 2014 compared to the previous year.

Total fuels marketing sales fell by $467,681,000 last year to $2,060,017,000, down from $2,527,698,000 in 2013. However, despite the drop in product sales, segment operating income rose to $24,805,000 in 2014 from a loss of $126,000 in 2013. This was principally due to a $491,273,000 reduction in the cost of product sales, from $2,474,612,000 in 2013 to $1,983,339,000 last year.

During the last three months of 2014, fuels marketing sales were down by $134,962,000, or 24,6 percent, to $414,205,000, from $549,167,000 the previous year. Operating income also declined, to $2,908,000, down from $7,114,000 during the corresponding period in 2013.

Distributable cash flow

Distributable cash flow from continuing operations in the final quarter of 2014 was $95.4 million, which equates to $1.23 per unit. This represents an increase of more than 25 percent on 2013, when distributable cash flow from continuing operations available to limited partners was $75.3 million ($0.97 per unit).

Distributable cash flow from continuing operations available to limited partners saw an even bigger increase, growing from $257.8 million in 2013 to $354.8 million in 2014.

Brad Barron, NuStar Energy's CEO, described 2014 as a "great year for NuStar", and attributed the company's ability to cover its full-year distribution to "a renewed focus on our core, fee-based pipeline and terminals businesses" as well as a policy of "significantly reducing our exposure to margin-based operations".

The San Antonio company saw record throughput volumes in both its storage and pipeline segments. A new ultra-modern dock in Corpus Christi, Texas, was also completed in 2014. As a result, the company saw its highest annual distribution coverage since 2011.

Earnings results

Earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations were $136.0 million in the fourth quarter of 2014, a marked improvement on the negative EBITDA of $192.3 million posted in the fourth quarter of 2013. NuStar Energy reported EBITDA of $547.9 million for the full year ending on December 31, 2014, the highest figure in the company's history.

Net income applicable to limited partners was $41.5 million for the final quarter of 2014. The corresponding result in 2013 was a net loss of $368.3 million, or a profit of $16.6 million discounting certain adjustments.

Full-year net income applicable to limited partners for the year ending on December 31, 2014 was $163.3 million. The company posted a net loss applicable to limited partners of $311.5 million in 2013, or a profit of $58.8 million discounting adjustments.

NuStar Energy's board of directors has declared a distribution of $1.095 per unit for the final quarter of 2014, which is due to be paid on February 13, 2015 to those holding a record from February 9, 2015.

Earnings guidance for 2015

Barron also released earnings guidance for the coming year. He stated that the company expects first quarter EBITDA results to be higher in 2015 than 2013, due in part to increased throughput volumes from the first stage of the company's South Texas Crude Oil Pipeline System, which was completed in 2014.

Baron also stated that the company has forecast EBITDA from their pipeline segment to be between $25 and $45 million higher than in 2014, and EBITDA from their storage segment to be between $10 and $30 million higher. The company expects to cover its distribution again for 2015, and to invest around $400 million on growth projects and acquisitions during 2015.

The full release can be found on the company's website.