NuStar Energy L.P. (NS) has once again exceeded market expectations, proving its mettle in the fiercely competitive energy sector. The company’s fourth-quarter 2023 adjusted earnings per unit of 37 cents not only trumped the Zacks Consensus Estimate of 26 cents but also marked a significant improvement from the previous year’s figure of 34 cents. This stellar performance can be attributed to robust contributions from the Storage segment. NuStar Energy also reported revenues of $451.7 million, surpassing the consensus mark of $362 million and demonstrating a 5% year-over-year increase.
NuStar Energy L.P. Price, Consensus and EPS Surprise
NuStar Energy L.P. price-consensus-eps-surprise-chart | NuStar Energy L.P. Quote
Segmental Performance
NuStar Energy’s Pipeline throughput volumes saw a marginal decline, but the company’s Permian Crude System experienced a decrease from the year-ago quarter figures. Meanwhile, the Storage segment reported decreased throughput volumes but managed to achieve an increase in total revenues. The Fuels Marketing segment recorded increased product sales and costs, resulting in a mixed earnings performance.
Financial Highlights
The distributable cash flow available to limited partners for the reported quarter stood at $87.3 million, providing a healthy adjusted distribution coverage of 1.73x. Furthermore, the partnership continues to improve its debt-to-EBITDA ratio, signaling a positive trajectory for its financial position. NuStar Energy has provided a guidance range for net income and adjusted EBITDA for the full-year 2024, showcasing management’s confidence in the company’s future prospects.
Market Outlook
NuStar Energy’s upcoming merger with Sunoco LP in 2024 is a testament to its strategic growth initiatives, indicating a promising outlook for the company and its stakeholders. With a Zacks Rank #3 (Hold), NuStar Energy remains a steady player in the energy sector. However, investors seeking other opportunities in the energy sector may consider better-ranked stocks like Subsea 7 S.A., Energy Transfer LP, and Murphy USA Inc., which offer distinctive value propositions and growth potential.
Subsea 7 is valued at $4.07 billion, with a dividend of 38 cents per share annually. It specializes in offshore project services for the energy industry. Energy Transfer, valued at $45.76 billion, offers attractive dividends and is involved in the exploration and production of crude oil and natural gas. Murphy USA, valued at around $8.47 billion, has exhibited strong stock performance and engages in the marketing of retail motor fuel products, operating retail stores under several popular brands.
Just Released: Zacks Top 10 Stocks for 2024
Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
NuStar Energy L.P. (NS) : Free Stock Analysis Report
Murphy USA Inc. (MUSA) : Free Stock Analysis Report
Energy Transfer LP (ET) : Free Stock Analysis Report
Subsea 7 SA (SUBCY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
