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NuStar GP Holdings, LLC Increases Third Quarter 2012 Distribution

Distribution 10% Higher than Last Year’s Third Quarter Distribution

Future Results Should Benefit from NuStar Energy’s Internal Growth Capital Program

SAN ANTONIO--(BUSINESS WIRE)-- NuStar GP Holdings, LLC (NYSE: NSH) today announced that distributable cash flow available to unitholders for the third quarter of 2012 was $23.4, or $0.55 per unit, compared to $21.1 million, or $0.50 per unit, for the third quarter of 2011. In addition, the company announced that its board of directors has declared a third quarter distribution of $0.545 per unit. This distribution represents an increase of $0.05 per unit, or 10.1 percent, over the $0.495 distribution for the third quarter of 2011. The third quarter 2012 distribution will be paid on November 16, 2012, to holders of record as of November 9, 2012.

Third quarter net income was $19.2 million, or $0.45 per unit, compared to net income of $18.4 million, or $0.43 per unit, earned in the third quarter of 2011.

“Due primarily to the cash flow benefits realized as a result of NuStar Energy L.P. issuing equity during the third quarter of 2012, NuStar GP Holdings, LLC was able to increase its third quarter distribution,” said Curt Anastasio, President and Chief Executive Officer of NuStar Energy L.P. and NuStar GP Holdings, LLC.

Anastasio added, “NuStar GP Holdings, LLC's future distributable cash flow and distributions should benefit from the internal growth capital programs NuStar Energy recently completed in the Eagle Ford shale.”

A conference call with management is scheduled for 10:00 a.m. ET (9:00 a.m. CT) today, October 25, 2012, to discuss the financial results for the third quarter of 2012. Investors interested in listening to the presentation may call 800/622-7620, passcode 35510410. International callers may access the presentation by dialing 706/645-0327, passcode 35510410. The company intends to have a playback available following the presentation, which may be accessed by calling 800/585-8367, passcode 35510410. A live broadcast of the conference call will also be available on the company’s Web site at www.nustargpholdings.com.

NuStar GP Holdings, LLC is a publicly traded limited liability company that owns the two percent general partner interest, a 13.1 percent limited partner interest and the incentive distribution rights in NuStar Energy L.P., one of the largest independent liquids terminal operators in the nation, NuStar has operations in the United States, Canada, Mexico, the Netherlands, including St. Eustatius in the Caribbean, the United Kingdom and Turkey. For more information, visit NuStar GP Holdings, LLC’s Web site at www.nustargpholdings.com.

This release serves as qualified notice to nominees under Treasury Regulation Sections 1.1446-4(b)(4) and (d). Please note that 100% of NuStar’s distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, all of NuStar’s distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate for individuals and corporations, as applicable. Nominees, and not NuStar, are treated as the withholding agents responsible for withholding on the distributions received by them on behalf of foreign investors.

Cautionary Statement Regarding Forward-Looking Statements

This press release includes forward-looking statements regarding future events. All forward-looking statements are based on the company's beliefs as well as assumptions made by and information currently available to the company. These statements reflect the company'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. and NuStar GP Holdings, LLC’s 2011 annual reports on Form 10-K and subsequent filings with the Securities and Exchange Commission.

NuStar GP Holdings, LLC Consolidated Financial Information (Unaudited, Thousands of Dollars, Except Unit and Per Unit Data) Three Months Ended Nine Months Ended September 30, September 30, 2012 2011 2012 2011 Statement of Income Data: Net income (loss) Equity in Earnings (Loss) of NuStar Energy L.P.: Distributable Cash Flow (Note 1): Cash distributions to be paid to the unitholders of NuStar GP Holdings, LLC:

NuStar GP Holdings, LLC
Consolidated Financial Information - Continued
(Unaudited, Thousands of Dollars)

Notes:

1. NuStar GP Holdings, LLC utilizes distributable cash flow as a financial measure, which is not defined in United States generally accepted accounting principles. Management uses this financial measure because it is a widely accepted financial indicator used by investors to compare general partner performance. In addition, management believes that this measure provides investors an enhanced perspective of the ability to make a minimum quarterly distribution. Distributable cash flow is not intended to represent cash flows for the period, nor is it presented as an alternative to net income. It should not be considered in isolation or as a substitute for a measure of performance prepared in accordance with United States generally accepted accounting principles.

The following is a reconciliation of net income (loss) to distributable cash flow and net cash provided by operating activities:

Three Months Ended Nine Months Ended September 30, September 30, 2012 2011 2012 2011

NuStar Energy, L.P., San Antonio
Investors, Chris Russell, Vice President
Investor Relations: 210-918-3507
or
Media, Mary Rose Brown, Senior Vice President,
Corporate Communications: 210-918-2314
Web site: http://www.nustarenergy.com

Source: NuStar GP Holdings, LLC