NuStar Energy L.P.

You do have obviously offsets to that in the business itself, primarily some of the other efforts we've done to reduce spending and things like that and capital. So there are offsets. We realize that interest rates have climbed and we're doing what we can to manage all that and make sure that we continue to do that. And specifically, the FERC indexing, we got a pretty good benefit from the FERC indexing on our pipeline segments and also in some of our storage assets as well. So definitely offsets to that. So I wouldn't say we're overly concerned. We are looking at it. We are monitoring it. And we'll just see what happens with rates going forward.

Okay.

Sounds good. Thank you. Our next question comes from Gabriel Maureen with Mizzou Hole. Your line is open.

Hi. Good morning. This is Chris Jeffrey on for Gabe. Maybe just looking at the storage results for the quarter, and the release mentioned the North Beach contract, customer transitions, and St. James tank maintenance. Just curious, as you're looking into 4Q, kind of where should we expect that level, given those puts and takes? Should we kind of expect it to return to where it was 2Q, 1Q, or what's kind of the run right now?

I think there might be some slight improvement. Some of that has to do with the reset in our MVC levels in Corpus, and that will continue into Q4, but so far in Q4 we're seeing the volumes actually pick up, so back above MVC levels. So right now I'm anticipating a better Q4, but we've still got you know, a couple of months left to go.

Great. Thanks, Danny. And then maybe just looking at GNA for the quarter as well, there was kind of a modest jump in 3Q, which seems to be typical maybe in 4Q. There's a bit of a lift. I was just curious if that's a timing thing or related to the press takeout, anything that we should be aware of there.

What line item was that?

G&A.

Oh, yeah, G&A. Yeah, we had an increase in G&A this quarter. Some of that is salary-related, comp-related type expenses, which are our normal annual increases and things that we see each year. Another piece of that would be our headquarters rent. You recall that part of the proceeds or all of the proceeds that we did when we monetized our headquarter building we turned that into an operating lease. And so that kind of moves from, since we were refinancing, that kind of moved into the G&A category. So you'd see an increase due to that as well. And professional fees were up a little bit as well in G&A. So I think it was just really a combination of those three things. And remember on the headquarters lease, even though that has been reclassified, we actually get a benefit of that because the rate that we're paying on that lease is actually substantially less than what we could do in the bond market today, and certainly less than the Series Ds that were out there, and we used those proceeds to redeem the Series D. So even though you have that, we'll call it income statement category change, where it kind of goes from interest expense or distributions up to this expense, you still have a savings there. It's just a classification thing.

Got it. Thanks. And then maybe just to look at ask the Permian question in a different way, just kind of how you're thinking of the capital for 24 compared to that 35 to 45 for this year. And is that similarly, you know, flexible based on kind of how the volume progresses for the year?

We haven't given any guidance yet in 24, but I think we'll probably have some of that for you on the next call.

Yeah, what I would say is that, as we've said on every call, you know, the capital and the Permian scale is up and down with volume. And so you can expect it to be, if you have higher volume, we'll see a little bit higher capital for connections. Lower volume, you know, you'll see an offset there, which is beneficial.

Great. Thanks, everyone.

Thank you.

Again, ladies and gentlemen, if you have a question or a comment at this time, please press star 1-1 on your telephone. Our next question comes from Selma Nicole with Stiefel. Your line is open.

Thank you. Good morning. Just a couple quick ones for me. You guys talked about fuels marketing having a strong quarter, and I guess I'm just wondering how the outlook is for the fourth quarter going on.

So I think there's, you know, right now our full year outlook has us just below the near record year last year. I think there's some room for upside in Q4, given our current forecast, but just mostly around how much volume of butane we'll be able to get into the gasoline pool in the fourth quarter, but still seeing very strong margins in both our bunker marketing business and also butane blending.

Got it. Appreciate that. And then I guess in the prepared comments, you guys talked about ammonia and you talked about strong organic growth over the next and ahead several years. written in my notes here. But I'm just kind of curious, you know, you talked about 25 million of investments. And as you look out over the next several years, should we continue to think of investments into that being sort of the smaller chewable? Or as you look out and you see the growth in that business, is there going to be, you know, a real large project that's going to, you know, require a significant amount of capital?

Yeah, no, I think the former, you know, we've got a lot of operational leverage to work with. And, And that spend will be spread out over several years we've got, or a few years. We've got the OCI project, as Brad mentioned, will go into service in early 24, and that we've already announced. And then the blue and green projects that Brad was referring to will go into service in kind of a 26, 27 timeframe. So that spending will be spread out over two or three years,

The thing that I would add to Danny's comment, this is Brad, the thing that I would add to Danny's comment is because of the infrastructure that we have in the area, we're really focused on low multiple projects. And so I think we have several good small low multiple projects, and then there's other opportunities to play further out as ammonia opportunity develops.

Great. I'll leave it there. Thank you very much for the call.

Thanks, Evan.

And I'm not showing any further questions at this time. I'd like to turn the call back over to Pam for any closing remarks.

Thank you, Kevin. We would once again like to thank everyone for joining us on the call today. If anyone has additional questions, please feel free to contact New Star Investor Relations. Thanks again and have a great day.

Ladies and gentlemen, this concludes today's presentation. You may now disconnect and have a wonderful day.