NuStar GP Holdings, LLC (NYSE:NSH) recently reported its fourth quarter earnings and discussed the following topics in its earnings conference call.
Eagle Ford Performance
Brian Zarahn – Barclays: You don’t have the assets for little while, but can you talk about the performance maybe in terms of volumes of the Eagle Ford crude pipe?
Curt Anastasio – CEO and President: Yes, it’s going even better than expected and I’ll turn it over to Danny Oliver, our Senior VP for Business Development to expand on that.
Danny Oliver – SVP, Marketing and Business Development: Sure. As you may remember this TexStar line and the lines that we’ve contributed to that project is really the third line that we have going into Eagle Ford service, but that one in particular running about 70,000 barrels a day on that line alone today, that’s just ahead of expectations. We expect to be near 100,000 barrels a day sometime here in the next month or two probably March.
Brian Zarahn – Barclays: On the NGL assets, can you give a little more color as to where discussions are with shippers on contracts?
Danny Oliver – SVP, Marketing and Business Development: Yeah, we are completing final negotiations on many of those agreements. It entails both the supply of the Y-grade also the off-take of the purity grades and then, of course, we have to finish constructing the fractionators. The two fractionators exist. They are being refurbished and reconstructed.
Curt Anastasio – CEO and President: I know you probably know this but just for the benefit of everybody on the call, we’re getting into this NGL transportation and fractionation solely on fee basis, these are deals backed by long-term contracts we never take ownership of the commodity. There’s no price risk. We’re not exposing ourself to any margin risk and so I’m sure you know that, but I just wanted to reiterate that when I had an opportunity to do so.