Summary
NuStar has a large crude oil gathering and terminalling system and is one of the few exclusive oil-focused MLPs in the United States.
The company's earnings are completely independent of oil prices and have been steadily rising over the past ten years.
The company is working to expand its Permian system as that region offers significant growth potential of up to 200%.
NuStar also recently got some new contracts in Mexico that is causing the company to make some investments there as well.
The company has a high leverage ratio and a significant amount of debt maturing in 2020.
On Thursday, August 16, 2018, pipeline and terminal operator NuStar Energy, L.P. (NS) gave a presentation at the Citi One-on-One MLP/Midstream Infrastructure Conference. The usual practice with these presentations is for the company to give an overview of its current operations, its growth plans, and its value proposition to investors. In this regard, NuStar does not disappoint as the company provided all three of these things as part of its presentation. I generally recommend that investors review presentations like this for themselves as part of their due diligence and I will do the same here. I will, however, naturally provide a summary of the company's presentation below as well as add my own thoughts and analysis to the discussion.
NuStar is a mid-sized master limited partnership boasting a market cap of $2.96 billion at the current unit price. Its size allows it to have exposure to multiple resource basins and, in fact, the company's crude oil terminals and pipelines cover much of the central United States.
