The partnership also announced that its third quarter 2009 earnings were slightly better than analysts' consensus estimates and were the third best in the partnership's history. Earnings before interest, taxes, depreciation and amortization (EBITDA) were $124.4 million for the third quarter of 2009, which compared to $214.4 million for the third quarter of 2008 - NuStar's highest quarter ever. Net income applicable to limited partners was $56.1 million, or $1.03 per unit, for the third quarter of 2009, compared to $141.3 million, or $2.60 per unit, earned in the third quarter of 2008.

NuStar Energy L.P. also announced that its board of directors has increased its distribution to $1.065 per unit, which would equate to $4.26 per unit on an annual basis. The distribution per unit for the first three quarters of 2009 is over five percent higher than the distribution for the same period in 2008. The third quarter 2009 distribution also represents an increase over the $1.0575 distribution for the second quarter of 2009 and the third quarter of 2008. The third quarter 2009 distribution will be paid on November 12, 2009, to holders of record as of November 5, 2009. Distributable cash flow from the non-asphalt operations covers the distribution payment for the nine months ended September 30, 2009.

"While third quarter 2009 earnings were lower than last year's record third quarter primarily due to weaker asphalt margins, they were in line with our guidance and still represented the third best earnings in the partnership's history," said Curt Anastasio, Chief Executive Officer and President of NuStar Energy L.P. and NuStar GP Holdings, LLC. "We were pleased with the strong performances from our fee-based storage and transportation segments, which partially offset the weaker relative performance from our asphalt and fuels marketing segment. As a result, we were able to provide an increase in the distribution payment in 2009."

Distributable cash flow available to limited partners covers the distribution to the limited partners by 1.06 times for the third quarter of 2009 and 1.47 times for the nine months ended September 30, 2009. Distributable cash flow from the non-asphalt operations of $246.9 million more than covers the distribution payment of $198.1 million for the nine months ended September 30, 2009.

"In this difficult economy, we are fortunate to continue to benefit from our fee-based storage and transportation segments that generated a combined operating income of nearly $80 million, significantly higher than the $59 million generated in the third quarter of 2008 and the nearly $69 million generated in the second quarter of 2009," said Anastasio.

"Operating income in our storage segment increased by 46 percent compared to the third quarter of last year, as renewals of lease contracts at higher rates and projects completed under our previous $400 million construction program continue to benefit this stable, cash flowing business.

"Transportation segment operating income was over 22 percent higher in the third quarter of 2009 compared to last year's third quarter despite lower throughputs. While pipeline throughputs were lower due to the sale of low-performance pipeline assets as well as planned turnarounds and unplanned operational outages at several of our customers' refineries, our per-barrel revenue and operating income have increased. This is primarily due to the 7.6 percent tariff increase that became effective July 1, 2009 and lower operating expenses partially due to lower power costs.

"Results from our asphalt and fuels marketing segment were significantly lower compared to last year's record when margins were among the highest in history at $16.44 per barrel. As a result of soft demand, primarily due to the lack of federal stimulus construction work and weak private sector activity, due to the sluggish economy, margins averaged $5.03 per barrel in the third quarter of 2009 as asphalt prices failed to keep pace with the nearly 60 percent run-up in crude oil prices. While the $5.03 per barrel margin was much lower than last year's record margin, it is still better than historic averages and resulted in approximately $25 million of EBITDA being generated from our asphalt operations in the third quarter of 2009.

"Payments made for federal stimulus construction work have been ramping up recently to approximately $3 billion this year and we continue to believe that most of the approximately $27.5 billion available for projects will be spent in 2010 and 2011. As we've said before, it is not a matter of if, but a matter of when this money will be spent and we expect our asphalt operations will benefit from this spending.

"With our recently approved strategic plan and budget, I am excited to say that we now have a renewed focus on high-growth opportunities with the next phase coming from a combination of fee-based and margin-based projects totaling over $500 million over the next two to three years. The largest portion of this growth capital program will consist of investment at storage facilities to construct new tank storage for third parties at strategic domestic and international terminals, to blend crude oil and heavy fuel oil at certain terminals and to develop and improve logistics at key terminals. We will also fund growth projects that expand our pipeline systems in fast-growing regions and that put in place the necessary infrastructure to allow us to capture incremental ethanol and biofuel volumes at various terminals. A large portion of these projects have very attractive internal rates of return of 20 percent or higher and are supported by fee-based, long-term contracts ranging between five and eight years.

"For the fourth quarter of 2009, we continue to expect our fee-based storage and transportation segments to perform well. Higher throughputs as a result of a lighter refinery maintenance schedule should bode well for our transportation segment, while our storage segment will continue to benefit from higher renewal rates and previously completed projects. In our asphalt operations, we expect fourth quarter 2009 earnings to follow the typical seasonal pattern of decline as sales volumes and margins taper off and we start winter-filling for the next asphalt season. Based on our current forecast, we expect the partnership's fourth quarter 2009 EBITDA to be in the range of $80 to $100 million," said Anastasio.

A conference call with management is scheduled for 11:00 a.m. ET (10:00 a.m. CT) today, October 27, 2009, to discuss the financial and operational results for the third quarter of 2009. Investors interested in listening to the presentation may call 800-622-7620, passcode 33734891. International callers may access the presentation by dialing 706-645-0327, passcode 33734891. The company intends to have a playback available following the presentation, which may be accessed by calling 800-642-1687, passcode 33734891. A live broadcast of the conference call will also be available on the company's Web site at www.nustarenergy.com.

NuStar Energy L.P. is a publicly traded, limited partnership based in San Antonio, with 8,407 miles of crude oil and refined product pipelines; 82 terminal facilities that store and distribute crude oil, refined products and specialty liquids; four crude oil storage tank facilities; and two asphalt refineries with a combined throughput capacity of 104,000 barrels per day. The partnership's combined system has over 91 million barrels of storage capacity. One of the largest asphalt refiners and marketers in the U.S. and the second largest independent liquids terminal operator in the nation, NuStar has operations in the United States, the Netherlands Antilles, Canada, Mexico, the Netherlands and the United Kingdom. For more information, visit NuStar Energy L.P.'s Web site at www.nustarenergy.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release includes forward-looking statements regarding future events. All forward-looking statements are based on the partnership's beliefs as well as assumptions made by and information currently available to the partnership. These statements reflect the partnership's current views with respect to future events and are subject to various risks, uncertainties and assumptions. These risks, uncertainties and assumptions are discussed in NuStar Energy L.P.'s 2008 annual report on Form 10-K and subsequent filings with the Securities and Exchange Commission. All information in this release is as of the date hereof, and we undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in the partnership's operations.

 NuStar Energy L.P. and Subsidiaries                                                                                                     
 Consolidated Financial Information                                                                                                      
 (Unaudited, Thousands of Dollars, Except Unit Data and Per Unit Data)                                                                   
                                                                                                                                         
                                                               Three Months Ended                    Nine Months Ended                   
                                                               September 30,                         September 30,                       
                                                               2009               2008               2009               2008             
                                                                                                                                         
 Statement of Income Data:                                                                                                               
 Revenues:                                                                                                                               
 Services revenues                                             $  190,439         $  187,104         $  549,133         $  547,775       
 Product sales                                                    1,060,808          1,638,122          2,323,960          3,247,805     
 Total revenues                                                   1,251,247          1,825,226          2,873,093          3,795,580     
                                                                                                                                         
 Costs and expenses:                                                                                                                     
 Cost of product sales                                            989,868            1,467,152          2,138,524          3,036,077     
 Operating expenses                                               118,190            127,095            332,017            322,473       
 General and administrative expenses                              19,213             20,358             67,529             55,985        
 Depreciation and amortization expense                            36,786             35,143             108,323            100,019       
 Total costs and expenses                                         1,164,057          1,649,748          2,646,393          3,514,554     
 Operating income                                                 87,190             175,478            226,700            281,026       
 Equity earnings from joint ventures                              2,374              2,122              7,698              6,072         
 Interest expense, net                                            (19,791     )      (25,228     )      (60,526     )      (67,027     ) 
 Other (expense) income, net                                      (1,961      )      1,696              25,883             12,236        
 Income before income tax expense                                 67,812             154,068            199,755            232,307       
 Income tax expense                                               3,372              2,791              12,225             11,071        
 Net income                                                    $  64,440          $  151,277         $  187,530         $  221,236       
                                                                                                                                         
 Net income applicable to limited partners                     $  56,097          $  141,321         $  162,865         $  198,975       
                                                                                                                                         
 Net income per unit applicable to limited partners (Note 1)   $  1.03            $  2.60            $  2.99            $  3.77          
                                                                                                                                         
 Weighted average limited partner units outstanding               54,460,549         54,460,549         54,460,549         52,753,696    
                                                                                                                                         
 EBITDA (Note 2)                                               $  124,389         $  214,439         $  368,604         $  399,353       
                                                                                                                                         
 Distributable cash flow (Note 2)                              $  69,920          $  164,649         $  279,292         $  282,007       
                                                                                                                                         
                                                                                                                                         
                                                                                                                                         
                                                               September 30,      September 30,                         December 31,     
                                                               2009               2008                                  2008             
 Balance Sheet Data:                                                                                                                     
 Debt, including current portion (a)                           $  1,925,792       $  2,051,486                          $  1,894,848     
 Partners' equity (b)                                             2,217,240          2,266,187                             2,206,997     
 Debt-to-capitalization ratio (a) / ((a)+(b))                     46.5        %      47.5        %                         46.2        % 


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 NuStar Energy L.P.