NuStar Energy L.P.

Ladies and gentlemen, thank you for standing by, and welcome to the Q3 2022 New Star Energy Earnings Call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you need to press star 11 on your telephone. I would now like to turn the call over to your host, Pam Schmidt, Vice President of Investor Relations. You may begin.

Good morning, and welcome to today's call. On the call today are New Star Energy LP's Chairman 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, New Star Management will make statements about our current views concerning the future performance of New Star that are forward-looking statements. These statements are subject to the various risk, uncertainties, and assumptions described in our filings with the Security 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, and if applicable, additional reconciliations may be located on the financials page of the investor section of our website at NewStarEnergy.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 we once again delivered a quarter of solid results. After taking into account the impact of our sale of the eastern U.S. terminal facilities in late 2021 and our sale of Point Tupper in April, we generated 6% higher EBITDA in third quarter 22 than adjusted EBITDA in third quarter 21. Our pipeline segment EBITDA was up in the third quarter, thanks in large part to the continued strong performance of our Permian crude system. We're happy to report that our Permian systems volumes hit another high in the third quarter, handing in a record-breaking average of 580,000 barrels per day. That's up 15% over the same quarter last year and up 11% over second quarter 2022. The steady, strong volume growth we've seen in 2022 is a testament to our producers and to the quality and strength of our acreage. We now expect to exit 2022 around 600,000 barrels per day which is about 15% above our 2021 exit. Moving on from the Permian to our refined products pipeline systems, even though a planned turnaround at a customer refinery reduced our third quarter volumes compared to third quarter of 21, 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 third quarter throughput up 26% over the same quarter last year. And our Valley refined products pipeline throughputs were also up, with third quarter 2020 throughput 14% above third quarter of 21. Moving on to our West Coast Renewable Fuels Network, our West Coast region's contribution to revenue continues to grow in 2022 from two more renewable fuels projects we brought into service at the end of last quarter. These projects increased our renewable diesel storage capacity and augmented our ethanol transportation logistics capabilities at our Stockton, California facility. Those 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, 9% of the ethanol, 19% of the renewable diesel, and 77% of all the sustainable aviation fuels sold in the state. Moving on to our Corpus Christi crude system, our throughputs averaged over 341,000 barrels per day in the third quarter. That's above our MVCs for that system, and we're encouraged by the continued growth in October as our average volumes rose to almost 390,000 barrels per day for the month. And with that, I'll turn the call over to Tom for some more details on our results.