Forward Looking Statements

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2 Forward Looking Statements This presentation contains certain estimates, predictions, projections, assumptions and other forward-looking statements that involve various risks and uncertainties. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested in this report. These forward-looking statements can generally be identified by the words "anticipates," "believes," "expects," "plans," "intends," "estimates," "forecasts," "budgets," "projects," "will," "could," "should," "may" and similar expressions. These statements reflect our current views with regard to future events and are subject to various risks, uncertainties and assumptions. For a discussion of certain of those risks, please read "Risk Factors" in Item 1A of NuStar Energy L.P's and NuStar GP Holdings, LLC's Form 10-K for the year ended December 31, 2006 and subsequent quarterly reports as filed with the Securities and Exchange Commission. 2

3 Conference Call Agenda Topic Page NuStar 3 rd Quarter 2007 Results: NS & NSH Distribution Increases 5 Recap of 3Q07 Results: 6 Strategic Project Update 7 Acquisition of CITGO Asphalt Refining Co. 8 Appendix 16 3

4 3 rd Quarter 2007 Results Curt Anastasio President and CEO 4

5 NuStar Energy L.P. (NS) Quarterly Distribution Increases $0.915 $0.915 $ Q07 Distribution Increases for NS and NSH $0.95 $0.985 NuStar GP Holdings, LLC (NSH) Quarterly Distribution Increases $0.32 $0.32 $0.34 $0.36 $0.885 $ * 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 3Q06 4Q06 1Q07 2Q07 3Q07 NuStar Energy L.P. increased the 3 rd quarter 2007 distribution to $0.985 per unit Increase of 7 cents per unit, or 7.7% over the $0.915 distribution for the 3 rd quarter of 2006 Strong coverage ratio of 1.36 times applicable to the limited partners for the 3 rd quarter of 2007 NuStar GP Holdings, LLC increased the 3 rd quarter 2007 distribution to $0.36 per unit * Increase of 4 cents per unit, or 12.5%, over the initial quarterly distribution of $0.32 per unit * Initial quarterly distribution for NSH is prorated for the period from closing of the initial public offering on July 19, 2006 to September 30, 2006 and is based on an initial quarterly distribution of $0.32 per unit. 5

6 (Dollars in Thousands, Except Per Unit Amounts) NuStar Energy L.P. Third Quarter 2007 Performance 3Q07 3Q06 % Inc / (Dec) EPU Guidance (Provided in 2Q07 conference call) $0.75 to $0.80 As Reported Net Income Applicable to Limited Partners $45,371 $36, % Net Income per Limited Partner Unit $0.97 $ % Distributable Cash Flow Available to Limited Partners from continuing ops. $1.34 $ % EBITDA from continuing ops. $103,699 $82, % Excluding Special Items*: Adj. Net Income Applicable to Limited Partners $38,034 $36, % Adj. Net Income per Limited Partner Unit $0.81 $ % * 3Q07 Special Items Impacting Comparability: Earnings EPU Gain on Sale of Interest in Wyoming Coal Property $ (7,250) $(0.15) Impact of Valero Energy McKee Refinery Fire Business Interruption Insurance: Plus: Estimated Losses in 3rd quarter 2007 $2,123 Less: Income Recognized for 2 nd quarter 2007 losses (5,400) (3,277) (0.07) Foreign Exchange Loss (Interco. Debt with Canadian sub.) 2, Other GP Interest Total Adjustments $(7,337) $(0.16) 6

7 Total Capital In-Service Dates Major Projects Investment 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 (Dollars in Millions) St. Eustatius Expansion - P1 $14.0 COMPLETED Savannah, GA Expansion 4.3 COMPLETED St. Eustatius Expansion P COMPLETED Portland, OR Expansion 8.9 COMPLETED Texas City, TX Expansion 8.4 COMPLETED Linden, NJ Expansion 5.8 COMPLETED Stockton, CA Expansion 8.0 COMPLETED Ammonia P/L Expansion 4.7 COMPLETED Vancouver Expansion 13.7 COMPLETED Amsterdam Expansion P St. Eustatius Expansion P Amsterdam Expansion P2 5.4 Linden, NJ Optimization 6.2 Texas City, TX Expansion 33.1 St. James, LA Expansion 53.4 Amsterdam Expansion P Texas City, TX Expansion 14.0 Jacksonville Expansion 28.2 Point Tupper* 50 to 70* Total $395 to $416 Strategic Project Update P = Phase * Project still under evaluation 7

8 Acquisition of CITGO Asphalt Refining Company Curt Anastasio President and CEO 8

9 NuStar the Winning Bidder on the CITGO Asphalt Refining Co. NuStar announced as the winning bidder of the CITGO Asphalt Refining Company for $450 million, plus an estimated $100 million for working capital With this acquisition, NuStar is expected to become the largest asphalt producer on the U.S. East Coast Expect to take advantage of higher asphalt margins due to increasing number of U.S. refinery upgrading expansion projects and high crude prices Expect transaction to close around yearend

10 Asset Overview Company Description Business comprised of two refineries, three owned terminals, and leases on 20 third-party terminals Paulsboro, New Jersey refinery/terminal capable of processing 74 mbpd of Venezuelan crude oil Asphalt production is sold via the on-site rack system and is shipped to ten terminals in the Northeast U.S Total storage capacity of 3.4 million barrels in 24 tanks Savannah, Georgia refinery/terminal capable of processing 30 mbpd of Venezuelan crude oil Asphalt production is sold via the on-site rack system and is shipped to ten terminals in the Southeast U.S The only refinery and asphalt producer on the Southeast seaboard Total storage capacity of 1.2 million barrels in 22 tanks Wilmington, North Carolina terminal Total storage capacity of 240,000 barrels 20 third-party terminals are on leases that vary from one to five years in length, with total capacity of 3.8 million total barrels of asphalt storage Includes leases at NuStar owned terminals Bid includes commitment to purchase annual average of 75,000 bpd of crude and 9 million barrels per year of asphalt over minimum 7 year period In 2006, produced and marketed over 27 million barrels of asphalt and 9 million barrels of light products Asset Overview 10

11 Strategic Rationale Asphalt assets continue to trade at discounts to replacement cost Asphalt assets have been ignored by refinery consolidators and trade at discounts to replacement cost Two asphalt refineries being acquired at around 50% of replacement value Global supply/demand fundamentals for asphalt expected to benefit U.S. asphalt market Expect to see sustained increase in asphalt margins due to a tightening market Expected to add attractive level of accretion to cash flows Continues to diversify NuStar s customer base and expands geographic presence Expect to provide opportunities for marketing, supply and trading businesses 11

12 Asphalt supply expected to tighten with increased demand for Coker feedstock Several planned coker projects are expected to compete with asphalt for Vacuum Tower Bottoms ( VTBs ) Refiners continue to have financial incentive to upgrade vacuum tower bottoms in cokers to produce lighter/higher value products rather than to produce asphalt Higher crude prices and larger netbacks on lighter products should continue to incentivize upgrading capacity investments that will reduce asphalt supply Reduced VTB supply expected to result in increased import dependence to meet U.S. asphalt requirements Domestic asphalt demand continues to grow Tight Supply/Demand Fundamentals Expected to Drive a Strong Asphalt Market Asphalt paving demand (representing 86% of total asphalt demand) is expected to grow with appropriations for highway projects Roofing demand (representing 11% of total asphalt demand) is expected to exhibit steady growth driven by residential and commercial construction Global asphalt demand is expected to grow at a rate of 1.8% per year Assuming cokers are operating close to capacity over the next five years, domestic asphalt market expected to be significantly dependent on imports leading to higher asphalt margins Sources: Asphalt demand from The Freedonia Group, Inc Global Vacuum Tower Bottoms Consumption Fuel Oil/ Bunker 52% 2012 Global Vacuum Tower Bottoms Consumption Fuel Oil/ Bunker 49% Asphalt 12% Asphalt 11% Coker Feed 36% Coker Feed 40%

13 East Coast and West Coast are currently net short asphalt Excess production in Mid-Continent and Gulf Coast used to meet current demand East Coast is also supplemented by imports Coker projects in Gulf Coast and Midcontinent expected to reduce asphalt supply Resulting imbalance expected to result in higher imports and/or sparing coker capacity Shifting trade patterns expected to affect logistics requirements Shifting trade flows expected to create opportunities for NuStar Coker Additions Expected to Shift U.S. Asphalt Trade Patterns 2006 U.S. Inter-PADD Trade Flows 8 3 (thousands of barrels per day) Imports from: Latin America Canada Europe Africa Projected 2012 U.S. Inter-PADD Trade Flows (thousands of barrels per day) Imports from: Latin America Canada Europe Africa Sources: Poten & Partners; PIRA Refinery Database, Energy Information Agency 13 Note: Assumes no reduction in coker utilization rates and fuel oil production

14 CITGO Asphalt Acquisition Expected to be Distributable Cash Flow Accretive Financial projections for the asphalt business are based on our projected economics Assumed average net working capital of around $225 million Expect to finance acquisition with at least 50% equity, including potentially a hybrid security Based on our forward projections, purchase price (including $225 million of average inventories) is at a multiple of expected EBITDA typical for a refining business Expect to holdback 50% of asphalt cash flow to account for volatility Maintaining a 2.0 times coverage ratio on cash flows from asphalt business Asphalt business is seasonal with the first and fourth quarters being the weakest Assuming the deal closes by the end of 2007, do not expect to see a material contribution to cash flows until the second quarter of 2008 Distributable cash flow per unit accretion, assuming 50% holdback, expected to be in the range of mid-to-high single digit percent for NuStar Energy L.P. and given the incentive distribution rights, expected to be close to double that for NuStar GP Holdings, LLC 14

15 Summary Provides one-step entry into attractive U.S. East Coast asphalt market Expect to take advantage of higher asphalt margins due to increasing number of U.S. refinery upgrading expansion projects Excellent opportunity to acquire asphalt assets at an attractive price, significantly less than their replacement value Provides internal growth opportunities for marketing, supply and trading businesses NuStar well positioned to manage asphalt business Added asphalt team who have the asphalt refining and marketing experience to manage the business Transaction expected to be distributable cash flow accretive 15

16 Appendix 16

17 Reconciliation of Net Income to EBITDA to Distributable Cash Flow 3Q07 vs. 3Q06 The following is a reconciliation of NuStar Energy L.P. s net income to EBITDA from continuing operations and distributable cash from continuing operations (Dollars in thousands, except per unit amounts): Three Months Ended September 30, 2007 September 30, 2006 Net Income $51,213 $41,169 Plus net interest expense 19,381 16,606 Plus income tax expense 3,571 (614) Plus depreciation & amortization 29,534 24,994 EBITDA from continuing ops. $103,699 $82,155 Less equity earnings from joint ventures (1,613) (1,464) Less interest expense, net (19,381) (16,606) Less reliability capital expenditures (11,597) (6,601) Less income tax (expense) benefit (3,571) 614 Plus general partner reimbursable charges Plus distributions from joint ventures - 1,963 Plus mark-to-market impact on hedge transactions 1,153 - Distributable cash flow from continuing operations $68,690 $60,413 General partner's interest in distributable cash flow from continuing operations (5,956) (4,864) Limited partner's interest in distributable cash flow from continuing operations $62,734 $55,549 Weighted average number of limited partnership 46,809,749 46,809,749 units outstanding Distributable cash flow from continuing operations per limited partner unit $1.340 $