A Message
From the CEO

Shining the Light on a Sustainable Future

Given how 2022’s historic inflation and volatility made for a bumpy ride around the globe and across financial markets, I am particularly proud of everything that NuStar Energy L.P. accomplished in 2022 and the stability and strength of our business.

Nothing is more important to us than safety, so I am pleased that NuStar once again outperformed our industry peers in terms of safety stewardship with a Total Recordable Incident Rate that was over 17 times better than the bulk terminal industry average and more than two times better than the pipeline industry average. We are also proud to have been awarded the International Liquids Terminal Association’s Safety Excellence Award for the 13th time. And our environmental performance continues to be excellent as well with releases accounting for just 0.00028% of our total annual throughput of 868 million barrels. A large pillar of our company’s culture is a strong commitment to environmental, health and safety excellence, so we will continue to strive to go above and beyond our previous successes in protecting the environment and ensuring the safety of our employees and contractors, as well as the communities in which we operate.

It takes great employees to make a great company and at NuStar, we have the best of the best. We are fortunate that we have a strong, employee-first corporate culture that was created by our Chairman Emeritus Bill Greehey, which helps us recruit and retain such an outstanding workforce. We have always believed that if you take care of your employees, they will take care of the company, our unitholders and our communities.

We are pleased that our employees continue to lead the way in supporting the communities where we operate. Thanks to our employees’ and directors’ generous gifts and our company match, we pledged approximately $4 million to United Way in 2022. Moreover, our headquarters average per capita contribution is the highest corporate rate in the nation. In addition, the 2022 NuStar NuHope Golf Classic was another huge success and contibuted to the more than $52 million that it has raised to help Haven for Hope in its fight against homelessness since the first event in 2007.

At NuStar, we take great pride in the important role we play in delivering the essential energy our country needs and the quality of life it allows Americans to enjoy. We are motivated by the opportunities we see to optimize our business to thrive as energy systems evolve. Accordingly, we are leading the way in the delivery of sustainable energy through our West Coast Renewable Fuels Network and projects in development on our Ammonia Pipeline, both of which will accommodate lower-emission energy products and will generate solid returns for our investors. In fact, we will continue to lead by spending around $25 million to expand our West Coast Renewable Fuels Network in 2023. And with the growing interest in ammonia – to reduce emissions and supply the globe – we are excited about the potential opportunities for attractive-return, low-spend projects that we are confident will increase our Ammonia Pipeline System’s utilization significantly over the next decade.

I’d like to thank our employees for their hard work and continued focus on successfully executing our strategy which has allowed us to achieve great success despite the significant economic challenges set in motion by the pandemic over the last several years. We remain steadfast in our commitment to safely and reliably deliver the energy that keeps America running.

As you read this year’s Sustainability Report, you’ll learn much more about our culture of responsibility that has distinguished NuStar throughout our history. Thank you for your interest in NuStar!

Sincerely,

Brad Barron, President and CEO