SunocoCorp LLC (SUNC) 2018 Q1 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the First Quarter 2018 NuStar Energy L.P. and NuStar GP Holdings, LLC Earnings Conference Call. (Operator Instructions) As a reminder, this call is being recorded.

各位女士、各位先生，大家好，歡迎參加 NuStar Energy L.P. 與 NuStar GP Holdings, LLC 2018 年第一季財報電話會議。（接線員指示）提醒各位，本次電話會議將被錄音。

I would now like to introduce your host for today's conference, Mr. Chris Russell, Treasurer and Vice President, Investor Relations. Please go ahead, sir.

現在我想介紹今天會議的主持人，投資人關係財務主管暨副總裁 Chris Russell 先生。先生，請開始。

Thank you, [Christie]. Good morning, everyone, and welcome to today's call. On the call today are Brad Barron, NuStar Energy L.P. and NuStar GP Holdings, LLC's President and CEO; and Tom Shoaf, Executive Vice President and CFO, along with other members of our management team.

謝謝你，[Christie]。各位早安，歡迎參加今天的電話會議。今天與會者包括 NuStar Energy L.P. 與 NuStar GP Holdings, LLC 的總裁兼執行長 Brad Barron，以及執行副總裁兼財務長 Tom Shoaf，並有我們管理團隊的其他成員一同參與。

Before we get started, we'd like to remind you that during the course of this call, NuStar management will make statements about our current views concerning the future performance of NuStar that are forward-looking statements. These statements are subject to the various risks, uncertainties and assumptions described in our filings with the Securities and Exchange Commission. Actual results may differ materially from those described in the forward-looking statements.

在開始之前，我們想提醒各位，在本次電話會議過程中，NuStar 管理層將就我們目前對 NuStar 未來表現的看法發表陳述，這些陳述屬於前瞻性聲明。這些聲明受我們向美國證券交易委員會提交之文件中所述的各項風險、不確定性與假設影響。實際結果可能與前瞻性聲明所描述者存在重大差異。

During the course of this call, we will also make reference to certain non-GAAP financial measures. These non-GAAP financial measures should not be considered as alternatives to GAAP measures. Reconciliations of certain of these non-GAAP financial measures to U.S. GAAP may be found in our earnings press release with additional reconciliations located on the Financials page of the Investors sections of our websites at nustarenergy.com and nustargpholdings.com. Now I'm going to turn the call over to Brad Barron.

在本次電話會議過程中，我們也會提及若干非 GAAP 財務衡量指標。這些非 GAAP 財務衡量指標不應被視為 GAAP 指標的替代。部分非 GAAP 財務衡量指標與美國 GAAP 的調節表可在我們的財報新聞稿中找到，更多調節表則位於我們網站 nustarenergy.com 與 nustargpholdings.com 之投資人專區的 Financials（財務）頁面。現在我將把電話交給 Brad Barron。

Good morning. Thank you joining us today. Have a lot of good news to share with you. To those of you who listened in February, you know that our last earnings call laid out a path forward to financial health and growth, as well as adjustments to our 2018 forecast. On our call today, I'm going to start by talking about our progress on our execution of the comprehensive plan we laid out. Then, before I turn it over to Tom for an overview of our quarterly results, and update on our view of 2018, I'll take you to several pieces of good news about our business, including some new growth projects, a small but immediately accretive bolt-on acquisition with a major customer in our Central East system, and update on our view on our Permian system 1 year after acquisition, and last, some encouraging developments at our St. Eustatius facility. Of all that as a preview, let's get started.

各位早安。感謝各位今天加入我們。我有很多好消息要與各位分享。二月有收聽的各位都知道，我們上一次的財報電話會議已勾勒出一條通往財務健全與成長的前進路徑，並對我們 2018 年的預測做了調整。在今天的電話會議中，我將先談談我們在執行所提出之全面性計畫方面的進展。接著，在我把電話交給 Tom 之前，讓他概述本季業績並更新我們對 2018 年的看法，我會先分享幾項關於我們業務的好消息，包括一些新的成長專案、一項規模不大但可立即增益的附加式收購（bolt-on acquisition），其對象為我們 Central East 系統中的一位主要客戶；並在收購滿一年之際更新我們對 Permian 系統的看法；最後，還有我們在 St. Eustatius 設施的一些令人鼓舞的進展。以上作為預告，讓我們開始吧。

During most recent earnings call, we laid out a comprehensive staged approach to best position NuStar for long-term financial strength and sustainable growth, which include simplifying our structure, restoring our coverage, lowering our leverage and minimizing our need to access the equity capital markets. Since then we made substantial progress on our simplification. In mid-March, we filed a joint Form S-4 preliminary proxy statement to seek NSH unitholder approval and issue NS units to effectuate the simplification. We're in the process of responding to SEC comments to the Form S-4, and we expect to be positioned to schedule our unitholder vote and close by the end second quarter. We're happy with the progress we've made on the simplification, but we know that operating and developing our business in our diverse asset base is just as important and we are proud to report good news that demonstrates we're doing just that.

在最近一次的財報電話會議中，我們提出一套全面且分階段的方法，以使 NuStar 在長期財務實力與可持續成長方面處於最佳位置，其中包括簡化我們的架構、恢復配息覆蓋率、降低槓桿，並將我們進入股權資本市場的需求降至最低。自那之後，我們在簡化方面已取得重大進展。三月中旬，我們提交了聯合 Form S-4 初步委託書聲明，以尋求 NSH 單位持有人核准並發行 NS 單位來完成簡化。我們正在回覆 SEC 對 Form S-4 的意見，並預期可在第二季末前安排單位持有人投票並完成交易。我們對簡化所取得的進展感到滿意，但我們也知道，在多元資產基礎上營運並發展業務同樣重要；我們也很自豪地報告一些好消息，證明我們確實正在做到這一點。

First, on projects and acquisitions. We're pleased to announce that we will be expanding on our existing pipeline assets in South Texas, as well as our terminal in Nuevo Laredo, Mexico, with projects to supply refined products to growing markets in Mexico. For those of you who have followed NuStar over the years, you know that, since Mexico's energy reforms began, we've been excited about the new opportunities those reforms present for us. Since then, we worked to position NuStar to take advantage of these opportunities by utilizing our existing assets in South Texas and Mexico to supply products to Mexico market. I'm happy to say, we have accomplished just that.

首先談專案與收購。我們很高興宣布，將擴建我們在南德州既有的管線資產，以及我們位於墨西哥 Nuevo Laredo 的終端設施，透過相關專案向墨西哥成長中的市場供應成品油。多年來持續關注 NuStar 的各位都知道，自墨西哥能源改革啟動以來，我們一直對改革為我們帶來的新機會感到振奮。此後，我們致力於運用我們在南德州與墨西哥的既有資產，讓 NuStar 能夠把產品供應到墨西哥市場，以掌握這些機會。我很高興地說，我們已經做到了。

I am pleased to announce that we have signed several long-term T&D agreements with strong, creditworthy customers to support a series of healthy-return capital projects to connect to third-party rail facilities in Corpus Christi, expand certain South Texas products pipeline systems and expand our Nuevo Laredo terminal. We expect to benefit from incremental revenue from these projects starting as soon as late 2018. We believe that Mexico market presents significant opportunities for future growth and I'm proud of our team's perseverance and creativity in developing these projects. We believe we'll establish NuStar as one of the primary logistics providers for this burgeoning market.

我很高興宣布，我們已與多家實力雄厚、信用良好的客戶簽署數份長期運輸與配送（T&D）協議，以支持一系列具備良好報酬的資本專案，包括連接 Corpus Christi 的第三方鐵路設施、擴建南德州部分成品油管線系統，以及擴建我們的 Nuevo Laredo 終端。我們預期最早可自 2018 年底開始，從這些專案帶來的增量收入中受益。我們相信墨西哥市場為未來成長提供了重大機會，我也為團隊在開發這些專案時展現的毅力與創意感到自豪。我們相信，NuStar 將能在這個蓬勃發展的市場中，建立為主要物流服務提供者之一。

On the acquisition front, in mid-April, we closed on an immediately accretive, $38 million acquisition of CHS' Council Bluffs system, consisting of a 227-mile pipeline and 18 storage tanks at a very attractive multiple. This bolt-on system enhances our existing Central East System by increasing our overall system flexibility and allowing expansion into new markets, while at the same time enhancing our role as a key logistics provider to CHS.

在收購方面，四月中旬，我們完成了一項可立即增益的收購，以 3,800 萬美元收購 CHS 的 Council Bluffs 系統，該系統包含一條 227 英里的管線以及 18 座儲槽，估值倍數非常具吸引力。這項附加式系統可提升我們既有 Central East 系統的效能，增加整體系統的彈性並使我們得以拓展至新市場，同時也強化我們作為 CHS 重要物流服務提供者的角色。

It's hard to believe, but next week, we will mark our first anniversary as owner of the Permian system. And we're happy to report that growth in the Permian Basin continues to exceed expectations. The Permian Basin overall has continued to outpace all of the U.S. shale play and growth, development and efficiency. There are now 453 rigs in the Permian, up over 30% from 342 when we acquired the system last May, and our Permian System has consistently outpaced overall growth in the basin. Since last May, our system throughput is up 117%, 250,000 barrels per day with May nominations coming in at 275,000 barrels per day, significantly higher than the overall growth in the Permian volumes of 33% during the same period. Based on our producers' projections, we expect to exit 2018 between approximately 360,000 barrels to 300,000 barrels per day. I'm also happy to report strong interest for our open season, for second capacity expansion on our Permian Crude System, which will increase our total system capacity by approximately 70,000 barrels per day to 460,000 barrels per day. We expect this project to be completed by the end of July 2018. As you can see while one year end, we remain extremely bullish on the Permian Basin in general and our Permian Crude System in particular. In addition to the Mexico's power projects and our Permian system, we are working on additional opportunities to expand utilization of our existing assets, notably our first-class terminal in dock in Corpus Christi and our unit train and dock facilities in St. James.

很難相信，但下週我們將迎來成為 Permian 系統所有者的一週年。我們也很高興報告，Permian 盆地的成長仍持續超出預期。整體而言，Permian 盆地在美國所有頁岩油氣區塊中，仍在成長、開發與效率方面領先。目前 Permian 有 453 座鑽機，較我們去年五月收購該系統時的 342 座增加逾 30%，而我們的 Permian 系統吞吐量也持續超越盆地整體成長。自去年五月以來，我們系統的吞吐量增加 117%，約增加至每日 250,000 桶；而五月提報量（nominations）達到每日 275,000 桶，顯著高於同期 Permian 總量僅成長 33% 的幅度。根據我們生產商的預測，我們預期 2018 年底的出場量約介於每日 360,000 桶至 300,000 桶之間。我也很高興報告，我們針對 Permian 原油系統第二次擴容的公開招標（open season）獲得強勁興趣；該擴容將使我們的總系統產能增加約每日 70,000 桶，達到每日 460,000 桶。我們預期此專案將於 2018 年 7 月底前完成。如各位所見，在滿一年之際，我們對 Permian 盆地整體以及我們的 Permian 原油系統仍然極度看多。除了墨西哥的相關專案與我們的 Permian 系統之外，我們也在尋求更多機會，以提高既有資產的使用率，尤其是我們在 Corpus Christi 的一流終端與碼頭，以及我們在 St. James 的單元列車與碼頭設施。

Moving on to some encouraging developments in St. Eustatius, in our last call, we told you we have reduced our expectations for PDVSA's utilization of the terminal in 2018 due to a significant reduction in activity at the terminal in late 2017 and early 2018. I'm happy to report Q1 saw an uptick in PDVSA's activity, which is reflected in our first quarter results and we are continuing to benefit from that activity. As the year progresses, we are hopeful this trend will continue. I think this offers a good segue to steal from [Tom's] thunder on our 2018 expectations. In part because of this uptick, we are up -- we are raising our adjusted EBITDA expectations for this year by $20 million. I believe our results demonstrate both the soundness of our plan to reposition NuStar and how hard all of our employees are working to operate our assets and develop our business. In fact, you may notice that EBITDA in all of our business segments, storage, pipeline and fuels marketing are up quarter-over-quarter, underscoring the continuing strength of our base business.

接著談 St. Eustatius 的一些令人鼓舞的進展。在上一次電話會議中，我們告訴各位，由於 2017 年底與 2018 年初該終端活動大幅減少，我們已下調對 PDVSA 在 2018 年使用該終端的預期。我很高興報告，第一季 PDVSA 的活動有所回升，這也反映在我們第一季的業績中，而我們也持續從該活動中受益。隨著年度推進，我們希望這一趨勢能持續。我想這也提供一個很好的銜接點，先「搶走」[Tom] 對我們 2018 年展望的風采。部分因為這次回升，我們將今年調整後 EBITDA 的預期上調 2,000 萬美元。我相信我們的結果同時展現了我們重新定位 NuStar 計畫的健全性，以及所有員工為營運資產與發展業務所付出的努力。事實上，各位可能注意到，我們所有業務部門——儲存、管線與燃料行銷——的 EBITDA 皆較上一季成長，凸顯我們基礎業務持續的強勁表現。

With that, I'll turn the call over to Thomas Shoaf, NuStar's Executive Vice President and CFO, to discuss our results and projections.

接下來，我將把電話會議交給 NuStar 執行副總裁兼財務長 Thomas Shoaf，請他說明我們的業績與展望。

Thanks, Brad, and good morning, everyone. Turning to overall first quarter 2018 results, we generated net income of $126 million and EBITDA of $250 million, up significantly from the first quarter of 2017, mostly due to the contributions from our Permian Crude System acquisition and a $79 million gain associated with our January 2018 receipt of hurricane-related insurance proceeds. We have received $100 million of insurance proceeds related to 2017 hurricane damage at our St. Eustatius terminal. We received $12.5 million in the fourth quarter of 2017 and the remaining $87.5 million in January 2018. We expect these proceeds to fully cover the cost of repairing the damage -- property damage, as well as most of our lost revenue over $5 million insurance deductible. While the gain was reflected in our first quarter net income and EBITDA, it is important to note that the gain will only be recognized in DCF as the proceeds are spent over the next couple of years to repair the damage caused from the hurricane. Our DCF available to common limited partners was $92 million and our distribution coverage ratio to the common limited partners for the first quarter was 1.64x.

謝謝你，Brad，各位早安。先看 2018 年第一季整體業績，我們創造淨利 1.26 億美元、EBITDA 2.50 億美元，較 2017 年第一季大幅成長，主要來自我們收購 Permian Crude System 的貢獻，以及與我們於 2018 年 1 月收到與颶風相關的保險理賠款所認列的 7,900 萬美元收益。我們已收到與 2017 年颶風造成 St. Eustatius 終端受損相關的 1 億美元保險理賠款：2017 年第四季收到 1,250 萬美元，剩餘 8,750 萬美元於 2018 年 1 月收到。我們預期這些理賠款將足以完全涵蓋修復損害的成本——包含財產損失，以及在 500 萬美元保險自負額以上的大部分營收損失。雖然該項收益已反映在第一季的淨利與 EBITDA 中，但重要的是要注意，該收益僅會在未來幾年隨著理賠款實際支出、用於修復颶風造成的損害時，才會在 DCF 中予以認列。我們可分配給普通有限合夥人的 DCF 為 9,200 萬美元，第一季對普通有限合夥人的配息覆蓋倍數為 1.64 倍。

The first quarter 2018 EBITDA in our Pipeline segment was $94 million, up $6 million from the first quarter of 2017, largely due to contributions from our Permian Crude System that were partially offset by the negative impact of longer than usual winter season on our ammonia pipeline throughputs. First quarter 2018 EBITDA in our Storage segment was $90 million, $4 million higher than the first quarter of 2017. Increased storage rates at our St. Eustatius terminal, as a result of the terminal enhancements we made to the facility last year and a contract early termination payment from a storage customer replaced at our Linden terminal will partially offset by decrease in revenues at our St. James terminal facility.

2018 年第一季我們管線事業部的 EBITDA 為 9,400 萬美元，較 2017 年第一季增加 600 萬美元，主要是 Permian Crude System 的貢獻，但部分被冬季時間較往常更長、對我們氨管線輸送量造成的負面影響所抵銷。2018 年第一季我們儲存事業部的 EBITDA 為 9,000 萬美元，較 2017 年第一季高 400 萬美元。St. Eustatius 終端的儲存費率提高（源於我們去年對該設施所做的終端強化），以及 Linden 終端一位儲存客戶提前終止合約所支付的款項，部分抵銷了 St. James 終端設施營收下滑的影響。

Since our fourth quarter earnings call, as Brad said, we saw encouraging uptick in PDVSA's [income] vessel activity and inventory balances at St. Eustatius terminal. And we were recognized short -- able to recognize short storage revenue owed to us under the contract from PDVSA in the first quarter.

自我們第四季財報電話會議以來，如 Brad 所說，我們看到 PDVSA 的船舶活動與 St. Eustatius 終端的庫存水位出現令人鼓舞的回升。而且我們在第一季也得以認列 PDVSA 依合約應付給我們的短期（short）儲存收入。

On March 31 debt balance was $3.7 billion while our debt to EBITDA ratio was 5.1x, below our credit agreement covenant threshold of 5.5x. On March 28, we amended our 5-year revolving credit amendment -- agreement, which among other things sets our covenant threshold at 5.25x for the remainder of 2018. On April 24, NuStar Energy declared the first quarter Series A preferred unit distribution of $53.125 per unit, the first quarter Series B preferred unit distribution of $47.657 per unit, and the first quarter Series C preferred unit distribution of $56.25 per unit, all 3 of which will be paid on June 15.

截至 3 月 31 日，債務餘額為 37 億美元，而債務對 EBITDA 比率為 5.1 倍，低於我們信貸協議的契約門檻 5.5 倍。3 月 28 日，我們修訂了 5 年期循環信用額度修訂案——協議，其中包括將 2018 年剩餘期間的契約門檻設定為 5.25 倍。4 月 24 日，NuStar Energy 宣布第一季 A 系列優先單位配息每單位 53.125 美元、B 系列優先單位配息每單位 47.657 美元，以及 C 系列優先單位配息每單位 56.25 美元，以上三項皆將於 6 月 15 日支付。

As we anticipated -- on April 24, NuStar Energy declared a first quarter common unit distribution of $0.60 per unit, which will be paid on May 14. In addition, NuStar GP Holdings or NSH declared first quarter distribution of $0.33 per unit, which will be paid on May 16. The NSH distribution was calculated assuming that NSH unitholders are expected to receive 0.55 units NS for each NSH unit they own after the closing of the upcoming simplification transaction.

如我們所預期——4 月 24 日，NuStar Energy 宣布第一季普通單位配息每單位 0.60 美元，將於 5 月 14 日支付。此外，NuStar GP Holdings（NSH）宣布第一季配息每單位 0.33 美元，將於 5 月 16 日支付。NSH 的配息計算係假設在即將完成的簡化交易交割後，NSH 單位持有人預期每持有 1 單位 NSH 將可獲得 0.55 單位 NS。

Turning to our 2018 projections, we now expect NuStar's 2018 EBITDA to be in the range of $700 million to $750 million, which includes the $79 million gain associated with the cash received of hurricane-related insurance proceeds I mentioned earlier. However, if you exclude the gain, we expect our 2018 adjusted EBITDA to be higher by approximately $20 million and in the range of $620 million to $670 million. We increased our guidance primarily to reflect the contribution from PDVSA-related storage revenues at our St. Eustatius terminal along with incremental EBITDA related to the Pipeline and Terminal acquisition from CHS, partly offset by lower pipeline revenue projections for the year as a rollout of change in accounting standards for revenue recognition and some softness in our storage segment due to continued backwardation in the forward pricing curve.

接著談 2018 年展望，我們目前預期 NuStar 2018 年 EBITDA 將落在 7.00 億至 7.50 億美元區間，其中包含我先前提到、與收到颶風相關保險理賠現金所認列的 7,900 萬美元收益。然而，若排除該項收益，我們預期 2018 年調整後 EBITDA 將約增加 2,000 萬美元，並落在 6.20 億至 6.70 億美元區間。我們上調指引主要反映：St. Eustatius 終端與 PDVSA 相關的儲存收入貢獻，以及自 CHS 收購管線與終端資產所帶來的增量 EBITDA；但部分被我們對全年管線收入較低的預估所抵銷，原因包括收入認列會計準則變更的推行，以及由於遠期價格曲線持續呈現逆價差（backwardation）而使儲存事業部略顯疲弱。

With regard to 2018 capital spending, we continue to plan to spend $360 million to $390 million on strategic and other capital, with approximately $190 million relating to the Permian Crude System. Our 2018 spending guidance also includes about $50 million of spending associated with the new strategic projects to supply refined products to Mexico that Brad mentioned earlier. Another $120 million is expected to be spent in 2019 to get these projects completed in the back half of 2019. These projects are expected to generate EBITDA multiples in the range of 5x to 7x and I'm very excited about these projects. While we have added the Mexico supply projects to our 2018 plan, we have not increased our total strategic capital spending for the year. This is just one example of how we are strategically managing our spending. As always, we are developing good projects to generate strong returns now and in the future, but we are focused on ensuring we spent only within our means.

就 2018 年資本支出而言，我們仍計畫在策略性及其他資本支出上投入 3.60 億至 3.90 億美元，其中約 1.90 億美元與 Permian Crude System 相關。我們 2018 年的支出指引亦包含約 5,000 萬美元，用於 Brad 先前提到、向墨西哥供應成品油的新策略性專案。另預期 2019 年將再投入 1.20 億美元，以在 2019 年下半年完成這些專案。這些專案預期可帶來約 5 倍至 7 倍的 EBITDA 倍數，我對這些專案感到非常振奮。雖然我們已將墨西哥供應專案納入 2018 年計畫，但並未提高本年度策略性資本支出的總額。這正是我們如何策略性管理支出的一個例子。一如既往，我們正在開發能在現在與未來創造強勁報酬的優質專案，但我們也專注於確保支出僅在我們可負擔的範圍內。

Regarding our reliability capital spending for 2018, we continue to expect to spend $80 million to $100 million, of which approximately $35 million related to hurricane repair spending at St. Eustatius, which is paid with insurance proceeds. Based on these projections, we now expect our coverage ratio for 2018 to be in the range of 1.2x to 1.3x and we are still targeting a coverage ratio in the range of 1.3x to 1.4x in 2019. We expect our debt to EBITDA ratio to be around 4.7x by the end of 2018 and in the 4.0x to 4.3x range by the end of 2019.

關於 2018 年的可靠度資本支出，我們仍預期投入 8,000 萬至 1.00 億美元，其中約 3,500 萬美元與 St. Eustatius 的颶風修復支出相關，並以保險理賠款支付。基於這些預估，我們目前預期 2018 年的配息覆蓋倍數將落在 1.2 倍至 1.3 倍區間，而我們仍以 2019 年達到 1.3 倍至 1.4 倍區間為目標。我們預期債務對 EBITDA 比率在 2018 年底約為 4.7 倍，並在 2019 年底降至 4.0 倍至 4.3 倍區間。

And with that, I'll turn it over -- call back over to Brad for his closing remarks.

接下來，我把電話會議——再交回給 Brad，請他做結語。

Thank you, Tom. On our last call, we set out in detail our stepped, comprehensive plan to strategically position the company for sustainable future growth, strength, flexibility and unitholder value. And as we have described, we are executing on our plan to simplify our structure, reduce our leverage, and maximize our ability to fund our future growth. At the same time, our employees have continued to work hard, operate safely and efficiently to provide world-class service and develop projects to drive growth and provide logistical solutions at competitive rates. We're making progress and we believe that all we've accomplished this quarter, up in every segment, quarter-over-quarter, demonstrates that NuStar is on the path of financial strength and flexibility and growth. We're excited about our future and after hearing all our good news, we hope our investors are too.

謝謝你，Tom。在上一次電話會議中，我們已詳細說明我們分階段、全面性的計畫，以策略性地讓公司在未來具備可持續成長、實力、彈性以及單位持有人價值。正如我們所描述的，我們正在執行簡化架構、降低槓桿，並最大化我們為未來成長提供資金的能力。同時，我們的員工持續努力，以安全且高效率的方式營運，提供世界級服務，並開發專案以推動成長，並以具競爭力的費率提供物流解決方案。我們正在取得進展，且我們相信本季在各事業部皆較前一季成長的成果，證明 NuStar 正走在財務實力、彈性與成長的道路上。我們對未來感到振奮，也希望投資人在聽到我們所有好消息後同樣如此。

With that, we'll open up the call for Q&A.

接下來，我們將開放問答。

(Operator Instructions) And our first question comes from the line of Jeremy Tonet of JPMorgan.

（接線員指示）我們的第一個問題來自摩根大通（JPMorgan）的 Jeremy Tonet。

This is Bill on for Jeremy. What was the Navigator EBITDA during the quarter and can you refresh us on the CapEx needed to hit the targets outlined at the acquisition?

我是 Bill，代 Jeremy 提問。本季 Navigator 的 EBITDA 是多少？另外，能否請你們更新一下，為達成收購時所概述的目標，所需的資本支出（CapEx）是多少？

The Permian EBITDA was $12 million for the quarter and the capital to hit the targets stand about $500 million in total over the next -- 2017 and 2020.

Permian 本季的 EBITDA 為 1,200 萬美元，而為達成目標所需的資本支出總額約為 5.00 億美元，分布在接下來——2017 年到 2020 年期間。

And then, what was the amount for the Linden termination payment that you mentioned?

另外，你剛才提到的 Linden 提前終止付款金額是多少？

$6 million.

600萬美元。

We really can't get into too many specifics on that, because this is customer specific, but the deal, as a whole, was a net -- on a net present value basis better for us than leaving them where they were. We were able to lease -- re-lease the tanks to another party.

我們確實無法就此提供太多具體細節，因為這是特定客戶的情況；但就整體交易而言，從淨現值的角度來看，這比讓他們維持原狀對我們更有利。我們也能將這些槽罐出租——再出租給另一方。

And then can you share more detail on the projects to Mexico and will those all go into service at the end of 2018? As you mentioned, some of the revenue will come on then or would they be more staggered?

另外，你能否分享更多關於墨西哥專案的細節？這些是否都會在2018年底投入服務？如你提到的，部分營收會在那時開始認列，還是會更分階段？

A little more staggered than that. There's some interim service that we'll provide at the end of 2018, but the projects -- the full effect of the projects will occur starting in mid-2019 through the end of 2019. Our customers are going to come out with their more specific announcements, probably pretty soon. And we're going to wait and let them do that. But I think, given the $180 million in capital that Tom shared with you, the 5x to 7x EBITDA multiple that he shared with you and of course mentioned that they are all supported by long-term take or pay agreements with these customers, I think we'll help you model that.

會比那樣更分階段一些。我們會在2018年底提供一些過渡性的服務，但這些專案——其完整效益將從2019年年中開始一路到2019年底才會顯現。我們的客戶很可能很快就會發布更具體的公告；我們會等他們先發布。我想，考量到Tom跟你分享的1.8億美元資本投入、他提到的5倍到7倍EBITDA倍數，當然也提到這些專案都由與客戶簽訂的長期take-or-pay（保量付費）協議支持，我想這會有助於你建立模型。

One thing I want to emphasize about that capital spend, there is about $50 million of that in 2018 and we've lowered our overall capital spend to accommodate those projects, so this does not increase our capital spend in 2018.

我想強調的是，這筆資本支出中約有5,000萬美元會發生在2018年，而我們已下調整體資本支出以容納這些專案，因此這不會增加我們2018年的資本支出。

Our next question is from Theresa Chen of Barclays.

下一個問題來自Barclays的Theresa Chen。

Just to clarify on the Permian Gathering System, what was the run rate for the quarter and where is it currently now?

想釐清一下Permian集輸系統，本季的run rate是多少？目前又是多少？

We're at 250,000 barrels a day right now, that's been about the last week of activity.

我們現在是每日25萬桶，這大概是過去一週的活動水準。

The run rate for the quarter [crease] was about 210.

本季的run rate（[crease]）大約是210。

We've got nominations in May of 275.

我們在5月的提名量（nominations）是275。

On the St. Eustatius facility, I understand that you saw an uptick in activity and revenue was booked. I was just curious to know if the customer actually paid the cash or were you able to monetize some of the inventory?

關於St. Eustatius設施，我了解你們看到活動量上升並已認列營收。我只是好奇客戶是否實際支付了現金，或是你們能否將部分庫存變現？

No, we don't get into details. We don't want to get into deep details about each of our customers as [Danny] said on the Linden thing. What I can tell you is that our customers are current and we value the relationship.

不，我們不會談細節。正如[Danny]在Linden那件事上所說，我們不想就每位客戶深入談太多細節。我能告訴你的是，我們的客戶目前都按期履約，我們也很重視這段關係。

On the CHS acquisition -- so in terms of the accretive multiple, can give a range of what that was and if the $38 million is included in your strategic CapEx or is it --

關於收購CHS——就增益倍數（accretive multiple）而言，你能否給一個區間？另外，3,800萬美元是否包含在你們的策略性CapEx中，還是——

Yes, the $38 million is not included in the strategic CapEx and the range of multiple on that was about -- it was a very attractive multiple, I don't know that we will only give out the exact multiple, but it was very attractive.

是的，這3,800萬美元不包含在策略性CapEx中；至於該交易的倍數區間，大約——那是一個非常有吸引力的倍數。我不確定我們是否會提供精確倍數，但它非常有吸引力。

In terms of year ETE cash fit that came out in your S-4, Can you talk about your thought process on that and maybe why you didn't consider at least having conversation just in the context of fiduciary responsibility and such.

關於你們S-4中披露的年初ETE現金提案（cash fit），你能談談你們的思考過程嗎？以及為什麼至少沒有考慮進行對話——至少在受託責任等背景下？

So with regard to the ETE letter and the details of that are fully disclosed in our S-4 and if you can understand, we have an ongoing and active merger agreement and active S-4 and so I would direct you to the S-4 for details about any of that and we'd like to keep the focus of this call in this quarter and the outlook for 2018.

關於ETE來函，其相關細節已在我們的S-4中完整披露；也請你理解，我們目前有一份持續有效且正在進行的合併協議，以及正在生效的S-4，因此我會請你參閱S-4以了解任何相關細節。我們也希望本次電話會議的重點放在本季表現以及2018年的展望。

Theresa, this is Tom. On the CHS acquisition, I think we're expecting 2018 EBITDA contribution of about $5.6 million, and on an annualized basis, that would be about $8 million of EBITDA…

Theresa，我是Tom。關於收購CHS，我們預期2018年的EBITDA貢獻約為560萬美元；若以年化計算，EBITDA大約是800萬美元……

And actually, if I can flip another one in there, for your funding needs this year, how -- what are you seeing in the press market today?

另外，如果我再補問一題：就你們今年的資金需求而言——你們目前在媒體市場（press market）看到的情況如何？

Well, I mean the press market is there, right. And so we'll continue to work on our financing plan that we laid out last quarter. The common equity markets are still challenged. We're considering [negotiating] securities in the second quarter in the public and/or the private markets to help us recharge debt leverage targets by the end of the year. So we're seeing that they are there.

嗯，我的意思是，媒體市場是存在的，對吧。因此我們會持續推進上季所提出的融資計畫。普通股權市場仍然具挑戰。我們正考慮在第二季於公開及／或私募市場發行[可協商]證券，以協助我們在年底前重新達成負債槓桿目標。所以我們看到市場是有的。

Our next question is from Shneur Gershuni of UBS.

下一個問題來自UBS的Shneur Gershuni。

Just wanted to confirm a couple of things here. First, the CapEx range, has it changed to $300 million to $500 million that you put out at the beginning of the year with respect to some of the new projects, which you've laid out there, are we within the range?

我想確認幾件事。第一，CapEx區間是否仍是你們年初提出的3億到5億美元？就你們剛提到的一些新專案而言，我們是否仍在該區間內？

We're still within that range there. The $360 million or $390 million we talked about today, that's the same guidance range that's from the -- on the fourth quarter call as well.

我們仍在該區間內。今天提到的3.6億或3.9億美元，與第四季電話會議時的指引區間相同。

So everything incremental now today was kind of contemplated just not specifically outlined, is that the way to think about it?

所以今天新增的內容其實先前已大致納入考量，只是沒有具體列出——可以這樣理解嗎？

No. What we've done is, we've adjusted our overall capital spending to make room for these particular projects.

不。我們所做的是調整整體資本支出，以便為這些特定專案騰出空間。

And then secondly, if I may have missed this, but did you say that you are at 5.25x leverage metrics with respect to your covenant compliance?

第二，如果我沒聽錯的話，你們是否說就契約遵循（covenant compliance）而言，你們的槓桿指標是5.25倍？

No, I didn't say. We were at 5.1x and we're allowed 5.5x this quarter.

不，我沒有那樣說。我們是5.1倍，而本季允許到5.5倍。

In calculating that number with the insurance proceeds, would that count in EBITDA in terms of how we would calculate that on a go-forward basis?

在計算該數字時，保險理賠款是否會計入EBITDA，以便我們在未來期間計算時納入？

No. The insurance proceeds don't count.

不。保險理賠款不計入。

And is there anything that -- obviously, there is a difference in how banks calculate compliance with leverage covenants versus how we will look at it from a GAAP perspective. Can you walk us through some of the difference and adjustments that we would be thinking about?

另外，顯然銀行計算槓桿契約遵循的方式，與我們從GAAP角度看的方式不同。你能否帶我們了解一些差異與我們需要考慮的調整？

On the debt side (inaudible) issuance that is excluded, that's treated with equity [under] the bank facility. That's the big thing on the debt side and then on the EBITDA side, we get material project adjustments for any large material projects we spent money of over $25 million and we also get to pro forma the EBITDA for any large acquisitions or any acquisitions we make for that matter. So we're still pro-forming an EBITDA for the Permian acquisition, small amount and will be pro-forming EBITDA on the CHS acquisition.

在負債端，（聽不清）發行是被排除的；在銀行授信下，它被視為權益處理。這是負債端最大的差異。然後在EBITDA端，對於任何我們投入超過2,500萬美元的大型重大專案，我們可以做重大專案調整；此外，對於任何大型收購或我們進行的任何收購，我們也可以將EBITDA做成備考（pro forma）。因此我們仍在對Permian收購做備考EBITDA（金額不大），也會對CHS收購做備考EBITDA。

So putting that together there -- and that you've got a little bit of room at 5.1x versus 5.5x, do you feel comfortable, especially given Q1 performance that the distribution cut was adequate that was announced last quarter?

綜合來看——你們在5.1倍相對於5.5倍還有一些空間；你們是否覺得有把握，特別是考量第一季表現，上季宣布的配息下調幅度是足夠的？

Yes, we factored all of this in determining the right distribution and so, yes -- I would say, yes. I mean, we -- like I said, we've got a financing plan where we plan to execute on, and with all that, we plan to lower our leverage this year from where it is currently.

是的，我們在決定適當的配息時已把這些都納入考量，所以，是——我會說是的。我的意思是——如我所說，我們有一個融資計畫並打算執行；在此基礎上，我們計畫在今年把槓桿從目前水準降下來。

Our next question is from Ryan Levine of Citi.

下一個問題來自Citi的Ryan Levine。

Which South Texas project system is NuStar planning on expanding? Is it only the 8-inch Laredo line at this point or is that also the Mont Belvieu to Corpus line that was in Oxy dispute?

NuStar計畫擴建的是哪一個南德州專案系統？目前是否只有8吋的Laredo管線？還是也包含先前與Oxy有爭議的Mont Belvieu到Corpus管線？

The Mont Belvieu to Corpus line isn't part of this spread. Several of our pipeline certainly that Laredo pipeline is one of them, but we've got several more coming out of Corpus heading that way that are being expanded as well.

Mont Belvieu到Corpus那條管線不在這次擴建範圍內。我們有幾條管線；當然Laredo管線是其中之一，但我們還有幾條從Corpus往那個方向延伸的管線也在擴建。

Is it also at South of the border or only in the U.S.?

這也包含邊境以南嗎？還是只在美國境內？

We only have only one pipeline involved in this project that crosses the border. That's a pipeline that crosses from Laredo to Nuevo Laredo, that will be expanded and then we're also expanding the terminal in the way Laredo adding storage and truck rack capabilities there.

這個專案中只有一條管線會跨境。那是一條從Laredo跨到Nuevo Laredo的管線，將會擴建；此外我們也會擴建Laredo端站，增加儲存與裝車架（truck rack）能力。

Is there seems to be any political risks with the election coming up, especially with these projects?

鑑於即將到來的選舉，尤其是就這些專案而言，是否看起來存在任何政治風險？

We don't believe so and our contracts cover that.

我們不這麼認為，而且我們的合約也涵蓋了這一點。

And then on financing front --

接著在融資方面——

Just a moment, one point -- our projects here are backed by long-term throughput and efficiency agreements.

稍等一下，有一點——我們在這裡的專案有長期的吞吐量與效率協議作為支撐。

So in change in administration won't impact that. Is what you say?

所以政府更迭不會影響到這些。你的意思是這樣嗎？

Right.

沒錯。

And then on financing plan, the $400 million target -- if the EBITDA is going up by $20 million, part of which is the recent acquisition, does that reduce your capital needs by directionally $100 million or is the $400 million target still appropriate?

那在融資計畫上，4億美元的目標——如果EBITDA增加2,000萬美元，其中一部分來自近期收購，這是否會在方向上把你們的資金需求降低約1億美元，還是4億美元的目標仍然合適？

I think we've given a range out there that we're targeting. And so I don't think it necessarily decreases what we're looking for in our financing plan. So I think we're still on target with what we have said.

我認為我們已經給出我們鎖定的目標區間。因此我不認為這必然會降低我們在融資計畫中所尋求的金額。我想我們仍然符合我們所說的目標。

And for the St. Eustatius PDVSA contract, you highlighted $20 million increase in EBITDA for 2018, is the whole $20 million associated with the St. Eustatius or is that only about $15 million and that the acquisitions also [accompanied]?

關於聖尤斯特歇斯（St. Eustatius）的PDVSA合約，你們提到2018年EBITDA增加2,000萬美元，這整個2,000萬美元都與聖尤斯特歇斯相關嗎？還是只有大約1,500萬美元，另外收購也有[帶來]？

The $20 million is various different items, Ryan. Part of that is the St. Eustatius one we talked about, part of it is the CHS -- (inaudible) and CHS acquisition and there are some offsets going the other way, we've got some weakness in the storage market that we're taking into account going forward and we also had some impacts from revenue recognition accounting adjustments.

Ryan，這2,000萬美元來自多個不同項目。其中一部分是我們談到的聖尤斯特歇斯，另一部分是CHS——（聽不清）以及CHS收購；同時也有一些相反方向的抵銷，我們考量到儲存市場有些疲弱並納入未來展望，另外我們也受到收入認列會計調整的一些影響。

And my last question, on the financing plan, is there any potential to monetize less core assets or is that no longer on the table?

我最後一個問題，關於融資計畫，是否有任何可能將較非核心資產變現，還是這已不再考慮？

I mean, yes, there is the potential of that, sure.

我的意思是，有的，當然有這種可能。

Our next question is from Robert Balsamo of B Riley FBR.

下一個問題來自B Riley FBR的Robert Balsamo。

Congrats on a strong quarter. Just a couple quick questions, a lot has been answered already. To elaborate on Shneur's question on CapEx, so I understand the CapEx is not changing, some of the stuff is basically being prioritized, but those projects that were pulled out of '18, were those canceled or pushed to 2019, they still on the table for future investment?

恭喜本季表現強勁。我只有幾個簡短問題，很多已經回答過了。延伸Shneur關於資本支出（CapEx）的问题，我理解CapEx沒有改變，有些事項基本上只是重新排定優先順序；但那些從2018年拉出來的專案，是取消了還是延後到2019年？未來投資仍在考慮範圍內嗎？

Some are still on the table. I wouldn't say we canceled anything. We just prioritized our continued development.

有些仍在考慮範圍內。我不會說我們取消了任何專案。我們只是對持續開發做了優先排序。

And then just kind of a modeling question. When I'm looking at the Pipeline segment and revenue per barrel -- average revenue per barrel for the quarter, looks like it's dipped down a little bit with higher volumes. How do we think about those revenues -- those margins moving forward? Just a good run rate or is it --

接著是一個建模問題。我在看管線（Pipeline）部門以及每桶收入——本季平均每桶收入，看起來在量增加的情況下略有下滑。我們該如何看待未來這些收入——這些利潤率的走勢？是合理的常態水準，還是——

Robert, I don't know. Let's us take that one offline. I'm not sure -- I'm trying to think out loud here. Let's take that one offline.

Robert，我不確定。我們私下再跟你討論這題。我不太確定——我先口頭想一下。我們私下再談。

Our next question is from Michael Blum of Wells Fargo.

下一個問題來自Wells Fargo的Michael Blum。

Can you -- really can you expand a little bit, you've mentioned in the Storage segment seeing a little weakness due to backwardation. Can you just talk about maybe the magnitude of that and in terms of the rate structure, how that works in terms of when contracts roll over, how real-time do those tariffs adjust based on the shape of the curve?

你能——你們提到在儲存（Storage）部門因為逆價差（backwardation）而看到一些疲弱。能否談談其幅度大概如何？以及在費率結構方面，當合約到期續約時，這些費率會依曲線形狀即時調整到什麼程度？

Yes. So, first of all, as is always the case in Storage, it is very regional. We have some regions that have been really completely unaffected. Specifically in the U.K. we haven't seen a significant softening or really any softening of rates there, plus we have some new project going online beginning of this year, so we're seeing EBITDA increase in the U.K. We are seeing the same thing on the West Coast, no deterioration of pricing, some small, but very good projects coming online throughout the year. So we're seeing increases in the EBITDA there as well. But we see -- where we've seen really the bulk of the headwinds is in on the East Coast, specifically at our Linden terminal. We had a couple of contracts up for renewal early this year. And then also at St. James, we had a contract come up at the end of the first quarter and rates are different there today. But it has been, for the most part, kind of limited to those areas, but the renewals in the effects of that backwardation is fully baked into the guidance that we've given.

可以。首先，一如儲存業務一貫的情況，它非常區域性。我們有些地區幾乎完全不受影響。具體來說，在英國我們沒有看到費率明顯走軟，甚至幾乎沒有走軟；而且我們今年年初有一些新專案上線，所以我們看到英國的EBITDA在增加。西岸也是同樣情況，定價沒有惡化，全年有一些規模不大但非常不錯的專案陸續上線，因此我們也看到那裡的EBITDA增加。不過，我們看到——真正大部分逆風出現在東岸，特別是在我們的Linden碼頭。我們今年年初有幾份合約到期續約；另外在St. James，我們在第一季末也有一份合約到期，現在那裡的費率已不同。但大致上影響主要限於那些區域，而且續約以及逆價差的影響都已完整反映在我們提供的指引之中。

So, Michael, you asked how responsive this is to the shape of the curve, I think you have to look at how your renewals are spread out over time. So ours are about 1/3 within a year, another 1/3 that's 1 to 3 years and the remainder are greater than 3 years. So it doesn't respond -- the entire segment doesn't respond immediately either up or down.

Michael，你問到它對曲線形狀的反應有多快，我認為你得看你的續約在時間上的分布。我們大約有三分之一在一年內續約，另外三分之一在1到3年，剩下的則超過3年。因此它不會——整個部門不會立刻對上行或下行做出反應。

And even in that 1/3, say that's in the first year, not all of them are impacted by market structure.

即便是在那三分之一、也就是第一年內的部分，也不是全部都會受到市場結構的影響。

(Operator Instructions) Our next question is from Selman Akyol of Stifel.

（接線員指示）下一個問題來自Stifel的Selman Akyol。

Just one quick one. Can you guys talk a little bit about re-contracting how that's going in St. Eustatius and in the Eagle Ford in particular?

只有一個簡短問題。你們能否談談重新簽約（re-contracting）的情況，特別是在聖尤斯特歇斯以及Eagle Ford？

Well, at St. Eustatius, we're always talking to potential customers about coming into the terminal. I think our -- we really don't want to re-contract there. We think that we've been able to whether what's been going on in Venezuela with PDVSA and certainly their rates justify a little additional handholding that we do with them. So while we're talking to new customers about coming into the terminal, we prefer to continue to work with PDVSA at St. Eustatius. As far as Eagle Ford goes, we are having success and re-contracting the first part of commitments that is up for renewal in August of this year. We've got about 45% of our overall Eagle Ford commitments coming up this year, another 20% in summer of next year, about 10% in the summer of '20, and then another roughly 25% out in 2023. But these that are coming up for renewal in August of this year, we are having success in re-contracting those volumes albeit at different rates than the initial open seasons given the capacity that's available in South Texas.

在聖尤斯特歇斯，我們一直都在與潛在客戶洽談進入該碼頭。我想我們——其實我們並不太想在那裡重新簽約。我們認為，面對委內瑞拉PDVSA目前的狀況，我們已經能夠挺過去，而且他們的費率也足以合理化我們對他們提供一些額外的協助。因此，雖然我們也在與新客戶洽談進入碼頭，但我們更傾向於在聖尤斯特歇斯繼續與PDVSA合作。至於Eagle Ford，我們在重新簽約方面進展順利：今年8月將到期續約的第一部分承諾，我們已成功重新簽下。我們整體Eagle Ford承諾中約45%會在今年到期，另外20%在明年夏天，約10%在2020年夏天，然後約25%在2023年到期。對於今年8月到期的這些量，我們在重新簽約上是成功的，儘管由於南德州可用產能的情況，費率與最初公開招標（open seasons）時不同。

And then just kind of going back to your comments on Eustatius, I mean, it sounds like a different tone than what it was last quarter. Would you say you are more optimistic in relationship to PDVSA now?

再回到你對Eustatius的評論，我的意思是，聽起來語氣跟上季不太一樣。你會說你們現在對與PDVSA的關係更樂觀嗎？

I would say -- yes, I would say, we are much more optimistic is -- as I think Tom alluded to, when we were -- the end of 2017 and early 2018, we have seen some volumes drop off and we're concerned about that. And -- but after the end of the year, as we got into the first quarter a bit in 2018, we saw those volumes really ramping up and willingness of PDVSA to work with us to continue that business.

我會說——是的，我會說我們樂觀得多。正如我想Tom提到的，在2017年底到2018年初，我們看到一些量下滑，對此感到擔憂。但是在年底之後，進入2018年第一季一段時間後，我們看到那些量確實回升，而且PDVSA也願意與我們合作以延續這項業務。

And that does conclude our Q&A session for today. I would like to turn the call back over to Mr. Chris Russell for any further remarks.

以上即為今天的問答環節。我想把電話交回給Chris Russell先生，請他做進一步的補充。

Thank you, [Christie]. I would like to thank everybody for joining us on the call today. If anybody has any additional questions, please feel free to reach out at NuStar's Investor Relations Department. Thank you and have a great day.

謝謝你，[Christie]。感謝各位今天參與我們的電話會議。如果任何人還有其他問題，歡迎隨時聯繫NuStar的投資人關係部門。謝謝，祝各位有美好的一天。

Ladies and gentlemen, thank you for participating in today's conference. This does conclude today's program and you may all disconnect. Everyone, have a great day.

各位女士先生，感謝參與今天的電話會議。今天的議程到此結束，您可以掛線。各位，祝有美好的一天。