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Fair Value
 3 Months Ended
Mar. 31, 2019
Fair Value Disclosures [Abstract]  
Fair Value
Fair Value

Fair Value Methods and Assumptions - Financial Assets and Liabilities.

We used the following methods and assumptions in estimating fair value of our financial assets and liabilities:

•
Energy commodity derivatives contracts. These include exchange-traded futures contracts related to petroleum products. These contracts are carried at fair value on our consolidated balance sheets and are valued based on quoted prices in active markets. See Note 9 – Derivative Financial Instruments for further disclosures regarding these contracts.

•
Interest rate contracts. These include forward-starting interest rate hedge agreements to protect against the risk of variability of interest payments on future debt. These contracts are carried at fair value on our consolidated balance sheets and are valued based on an assumed exchange, at the end of each period, in an orderly transaction with a participant in the market in which the financial instrument is traded. The exchange value was calculated using present value techniques on estimated future cash flows based on forward interest rate curves. See Note 9 – Derivative Financial Instruments for further disclosures regarding these contracts.

•
Long-term receivables. These primarily include payments receivable under a sales-type leasing arrangement and cost reimbursement payments receivable. These receivables were recorded at fair value on our consolidated balance sheets, using then-current market rates to estimate the present value of future cash flows.

•
Guarantees. At December 31, 2018, these guarantees primarily included an indemnity agreement we entered into with an affiliate of OMERS in connection with the partial sale of our interest in BridgeTex. This indemnification was recorded at fair value on our consolidated balance sheets upon initial recognition, using probability-weighted potential outcome scenarios to estimate our possible liability for specific events covered by this indemnification. During first quarter 2019, certain litigation subject to the indemnity agreement was settled.

•
Debt. The fair value of our publicly traded notes was based on the prices of those notes at December 31, 2018 and March 31, 2019; however, where recent observable market trades were not available, prices were determined using adjustments to the last traded value for that debt issuance or by adjustments to the prices of similar debt instruments of peer entities that are actively traded. The carrying amount of borrowings, if any, under our revolving credit facility and our commercial paper program approximates fair value due to the frequent repricing of these obligations.

Fair Value Measurements - Financial Assets and Liabilities

The following tables summarize the carrying amounts, fair values and fair value measurements recorded or disclosed as of December 31, 2018 and March 31, 2019 based on the three levels established by ASC 820, Fair Value Measurements and Disclosures (in thousands):
 
 
December 31, 2018
Assets (Liabilities)
 
 
 
 
 
Fair Value Measurements using:
 
Carrying Amount
 
Fair Value
 
Quoted Prices  in Active Markets
for Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Energy commodity derivatives contracts
 
$
55,011

 
$
55,011

 
$
55,011

 
$
—

 
$
—

Interest rate contracts
 
$
(8,126
)
 
$
(8,126
)
 
$
—

 
$
(8,126
)
 
$
—

Long-term receivables
 
$
20,844

 
$
20,844

 
$
—

 
$
—

 
$
20,844

Guarantees
 
$
(16,409
)
 
$
(16,409
)
 
$
—

 
$
—

 
$
(16,409
)
Debt
 
$
(4,270,869
)
 
$
(4,224,373
)
 
$
—

 
$
(4,224,373
)
 
$
—


 
 
March 31, 2019
Assets (Liabilities)
 
 
 
 
 
Fair Value Measurements using:
 
Carrying Amount
 
Fair Value
 
Quoted Prices in Active Markets
for Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Energy commodity derivatives contracts
 
$
(13,272
)
 
$
(13,272
)
 
$
(13,272
)
 
$
—

 
$
—

Interest rate contracts
 
$
(4,474
)
 
$
(4,474
)
 
$
—

 
$
(4,474
)
 
$
—

Long-term receivables
 
$
20,646

 
$
20,646

 
$
—

 
$
—

 
$
20,646

Guarantees
 
$
(408
)
 
$
(408
)
 
$
—

 
$
—

 
$
(408
)
Debt
 
$
(4,279,676
)
 
$
(4,449,954
)
 
$
—

 
$
(4,449,954
)
 
$
—