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NuStar Energy L.P. has announced that first quarter 2015 net income was $114.5 million, or $1.47 per unit, compared to $28.1 million, or $0.36 per unit, posted in the opening three months of 2014.

First quarter 2015 earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations was $214.0 million compared to $126.7 million during the corresponding period last year.

The company points out, however, that if it were not for a gain related to its January 2, 2015 acquisition of the remaining 50 percent ownership in the Linden terminal, first quarter 2015 adjusted EBITDA from continuing operations would have been $157.7 million, while adjusted net income would have been $59.4 million, or $0.76 per unit.

In fact, total revenues declined by $294,269,000, or 34.7 percent, to $554,944,000 between January and March, down from $849,213,000 during the prior-year quarter.

However, compared to last year, the cost of product sales during the first quarter of 2015 was $332,453,000 (55.88 percent) lower at $594,959,000, which resulted in total costs and expenses being $455,663,000 compared to $768,110,000 during the first three months of 2014.

The partnership also announced that its board of directors has declared a first quarter 2015 distribution of $1.095 per unit. The first quarter 2015 distribution is to be paid on May 14, 2015, to holders of record as of May 8, 2015.

"The South Texas Crude Oil Pipeline expansion led to record, and higher-than-anticipated, Eagle Ford throughput volumes during the quarter," said Brad Barron, President and Chief Executive Officer of NuStar Energy L.P. and NuStar GP Holdings, LLC. "During the first quarter, approximately 290,000 barrels per day of crude oil were moved through our South Texas Crude Oil Pipeline System.

"These record Eagle Ford crude oil throughput volumes and stronger-than-expected margins in our fuels marketing segment helped us attain a quarterly distribution coverage ratio of 1.25 times."

Internal growth project update

Barron added: "We have completed construction on NuStar's 12-inch pipeline between Mont Belvieu and Corpus Christi, Texas and expect to begin line fill next month. The pipeline is expected to generate an incremental $23 million in annual EBITDA upon reaching full NGL service, based on committed volumes."

2015 earnings guidance

"Due to higher than expected first quarter throughputs for our South Texas Crude Oil Pipeline System, we now anticipate our pipeline segment EBITDA to be $35 to $55 million higher than 2014. Our storage segment EBITDA is still expected to be $10 to $30 million higher than 2014, while our fuels marketing segment is still projected to be in the range of $20 to $30 million," said Barron.

Barron continued: "With regard to capital spending for 2015, our projected strategic capital spending remains at $400 to $420 million, while our 2015 reliability capital spending is now projected to be in the $45 to $55 million range."