NuStar Energy L.P.

And thank you for standing by. Welcome to the New Star Energy second quarter 2022 earnings call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advise that your hand is raised. Please be advised that today's conference call is being recorded, and I would now like to hand the conference call over to Dave's speaker Pam Schmidt, Vice President of Investor Relations.

Good morning and welcome to today's call. On the call today are Newstart Energy LP's President and CEO, Brad Barron, and our Executive Vice President and CFO, Tom Schoaf, as well as other members of our management team. Before we get started, we would like to remind you that during the course of this call, NewSTAR management will make statements about our current views concerning the future performance of NewSTAR 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. During the course of this call, we will also refer 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 investor section of our website at newstartenergy.com. With that, I will turn the call over to Brad.

Good morning. Thank you all for joining us today. I'm pleased to report that once again, we delivered solid results in the second quarter. After taking into account the impact of the sale of our eastern U.S. terminal facilities in late 2021, into Point Tupper in April, our second quarter EBITDA was comparable to 2Q21 EBITDA, despite some timing and transition issues, as Tom will talk about in a few minutes. Our pipeline segment EBITDA was up in the second quarter, thanks in large part to a strong performance from our Permian crude system. We're happy to report that our Permian system's volumes grew to a record-breaking average of 522,000 barrels per day in 2Q. That's up 16% over the same quarter last year and up 2% for the first quarter of 22. I want to note that June's monthly average was up to nearly 535,000 barrels per day, and in July, our Permian volumes continued to grow, rising to an average of 555,000 barrels per day. While overall U.S. oil production has faced supply chain and other challenges this year, our top-tier Permian producers have continued to successfully execute on their drilling plans. The steady, strong volume growth we saw in the first half of 2022 and continued ramp up this quarter is a testament to our producers and the quality and strength of our acreage. Because of the growth we've seen so far this year and what we expect for the rest of the year, based on our producer's drilling plans, we continue to expect to exit 2022 between 560,000 to 570,000 barrels per day. We're about 10% above our 2021 exit. Moving on from the Permian to our refined products pipeline systems, Even though some short-term operational issues at customer refineries reduced our Q2 volumes compared to Q2 21, our refined product volumes this past quarter were up compared to the first quarter of 2022. Our volumes continue to track at pre-pandemic levels, reflecting the strength of our assets and the stability of demand in the markets we serve across the mid-continent and throughout Texas. Our Northern Mexico refined product system also continued to perform well. with volumes above our average for 2021, with throughput this quarter up 20% over the same quarter last year. Moving on to our West Coast Renewable Fuels Network, we expect our West Coast region's contributions to continue to grow in the second half of 22. That's mainly from two more renewable fuels projects we've recently brought into service, which increase our renewable diesel storage capacity and augment our ethanol transportation logistics capabilities at our Stockton, California facility. Those two projects should further solidify the significant role that NuSTAR plays in facilitating California's transition to low-carbon renewable fuels, where we already handle 5% of the state's biodiesel, 13% of its ethanol, 21% of its renewable diesel, and almost 90% of the sustainable aviation fuel sold in the state. Moving on to our Corpus Christi crude system, our throughputs averaged around 290,000 barrels per day in the second quarter, slightly below our MVCs for that system, but we've been encouraged by the rebound in July as our average volumes rose to almost 340,000 barrels per day for the month. We're also pleased to announce that we reached an agreement with Trafigura to extend the term of our contract for transportation, storage, and export services on our Corpus Christi crude system from mid-2023 through the end of 2024 with two one-year extensions. As you will recall, in 2019, We completed projects that made NuSTAR one of the early movers transporting Permian Basin WTI from Cactus II and Gray Oak through our systems in South Texas for Trafalgar for regional supply and for export from Corpus Christi. By extending this contract, we're building on an established relationship that facilitates production of refined products on the Gulf Coast and provides export of U.S. crude oil to supply locations around the globe. And with that, I'll turn the call over to Tom for some more details on our results.