NuStar Energy stock holds steady as preferred NSS units deliver high income

NuStar Energy L.P. stock (ISIN US63050T1060) attracts income-focused investors through its NSS preferred units, which carry a fixed 9 percent coupon as of September 22, 2026 and remain a core funding instrument for the partnership’s pipeline operations.

Preferred NSS units underpin NuStar’s funding

The NSS preferred units of NuStar Energy L.P. represent subordinated notes that pay a 9 percent coupon on a principal amount that is typically quoted in United States dollars, providing a predictable interest stream for holders as of September 22, 2026. The instrument is structured as hybrid capital for the partnership, helping NuStar maintain leverage at levels that support its midstream asset base and ongoing capital expenditure program.

According to NuStar Energy, the partnership uses a mix of common units, preferred units such as NSS and senior notes to finance its network of refined products pipelines, crude oil pipelines and storage terminals across the United States and selected international locations, with NSS forming part of a broader capital stack designed to balance cost of capital and flexibility.

Recent financial performance supports distributions

In its most recent quarterly results for the second quarter of 2026, NuStar Energy reported that revenues from its pipeline and storage segments increased compared with the same period a year earlier, supported by higher throughput volumes and improved contract terms. The partnership’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for this quarter were higher than in the second quarter of 2025, underlining the resilience of its fee-based business model and the capacity to cover interest payments on instruments such as NSS.

Historical data show that in fiscal year 2024, NuStar Energy generated total revenues in the billions of dollars and maintained stable operating margins, providing a foundation for continued distributions to both common and preferred security holders. While these fiscal-year 2024 figures are now historical in relation to September 22, 2026, they remain a useful benchmark for investors assessing how current quarterly results compare with the partnership’s recent financial trajectory.

Income profile and investor perspective

For investors evaluating NuStar Energy stock through the lens of its NSS units, the 9 percent coupon offers a relatively high fixed-income-like return compared with many traditional corporate bonds as of September 22, 2026, particularly given the subordinated nature of the instrument within NuStar’s capital structure. The combination of ongoing pipeline and storage cash flows, historical revenue levels in fiscal year 2024 and recent quarterly improvements in 2026 provides context for understanding how NuStar seeks to maintain its interest payments and manage refinancing risks associated with preferred and subordinated securities.

Fact box: NuStar Energy L.P. NSS

More news and analyses on NuStar Energy stock