NuStar Energy L.P. Reduces Debt as Alamo Group Reaches Record Sales in Q2 Financial Reports
August 9, 2023
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NUSTAR ($NYSE:NS): NuStar Energy L.P. is a publicly traded master limited partnership based in San Antonio, Texas. This week’s second-quarter financial reports included NuStar Energy and Victory Capital Holdings, as well as Seguin-based Alamo Group. This was done through improved financial performance and asset sales.
The strong performance of both NuStar Energy and Alamo Group are a good indicator of economic resilience during these uncertain times. Both companies are well-positioned for continued success as the economy recovers.
Price History
On Monday, NUSTAR ENERGY L.P stock opened at $17.0 and closed at $17.1, down by 2.0% from prior closing price of 17.4. The success of Alamo Group’s financial report is indicative of the positive performance of the agricultural sector in the past few quarters. The increased demand for agricultural equipment and infrastructure maintenance products has helped to bolster revenues for NuStar Energy L.P., as well as other related businesses. This positive trend in the agricultural sector has been beneficial for NUSTAR ENERGY L.P. as it has enabled them to reduce its debt burden.
Overall, the reduction in debt for NuStar Energy L.P. is a strong indicator of financial stability and a positive sign for the future of the company. As Alamo Group continues to experience record sales during this time, it is likely that NuStar will be able to benefit from the increased demand for agricultural products and services, and will be able to continue reducing its debt burden in the coming months. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for NS. More…
| Total Revenues | Net Income | Net Margin |
| 1.62k | 120.28 | 16.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for NS. More…
| Operations | Investing | Financing |
| 557.57 | -7.48 | -550.62 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for NS. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.89k | 3.79k | 9.91 |
Key Ratios Snapshot
Some of the financial key ratios for NS are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 2.3% | 1.1% | 32.9% |
| FCF Margin | ROE | ROA |
| 26.6% | 26.8% | 6.8% |
Analysis
GoodWhale has conducted an analysis of NUSTAR ENERGY L.P’s wellbeing and classified the company as ‘rhino’ in its star chart. This type of company has achieved moderate revenue or earnings growth. As such, conservative investors may be interested in NUSTAR ENERGY L.P, as it is strong in other categories such as dividend and profitability. However, it is weaker in asset growth and this should be taken into consideration when investing. Furthermore, GoodWhale has given NUSTAR ENERGY L.P an intermediate health score of 6/10 with regard to its cashflows and debt- carrying capacity which suggests that it might be able to sustain future operations in times of crisis. All in all, NUSTAR ENERGY L.P looks to be a decent choice for conservative investors looking for moderate growth opportunities. More…
Peers
The company also owns a 50% interest in a joint venture that owns a pipeline system transporting crude oil from Cushing, Oklahoma to the U.S. Gulf Coast. Competitors to NuStar Energy LP include: Adams Resources & Energy Inc, Martin Midstream Partners LP, Gibson Energy Inc.
– Adams Resources & Energy Inc ($NYSEAM:AE)
Adams Resources & Energy, Inc. is a publicly traded crude oil marketing and transportation company headquartered in Houston, Texas. The Company markets, transports, and stores crude oil and refined products in the United States. Adams also owns and operates a fleet of barges and tankers.
Adams Resources & Energy Inc has a market cap of 94.42M as of 2022. The company’s Return on Equity is 6.55%. Adams Resources & Energy, Inc. is a publicly traded crude oil marketing and transportation company headquartered in Houston, Texas. The Company markets, transports, and stores crude oil and refined products in the United States. Adams also owns and operates a fleet of barges and tankers.
– Martin Midstream Partners LP ($NASDAQ:MMLP)
The company’s market cap as of 2022 is 121.21M, and its ROE is -140.7%. The company is involved in the transportation, storage, and distribution of crude oil and refined products.
– Gibson Energy Inc ($TSX:GEI)
Gibson Energy is a Canadian midstream energy company that owns and operates a network of fuel storage and transportation assets across North America. The company has a market cap of $3.44 billion and a return on equity of 32.72%. Gibson Energy’s assets include a network of crude oil pipelines, storage tanks, and rail cars. The company also owns and operates a fleet of tanker trucks and barges. Gibson Energy’s customers include major oil companies, refiners, and marketers.
Summary
NuStar’s increased earnings were driven by higher storage demand and higher storage rental rates, as well as improved crude oil pipeline, export terminal, and refined product pipeline revenue, partially offset by lower fuel oil volumes and lower terminal revenue. Moreover, the company’s strategic investments in pipeline systems and new storage tank facility contributed to its impressive financial results. With its strong balance sheet and ample liquidity, NuStar is well-positioned to continue to capitalize on growth opportunities and return value to shareholders through dividends.
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