ý | QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 05-0527861 | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
Yes x | No o |
Yes x | No o |
Large accelerated filer o | Accelerated filer x |
Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o |
Yes o | No x |
Page | ||
Item 1. | Financial Statements |
June 30, 2013 | December 31, 2012 | ||||||
(Unaudited) | (Audited) | ||||||
Assets | |||||||
Cash | $ | 17 | $ | 5,162 | |||
Accounts and other receivables, less allowance for doubtful accounts of $2,856 and $2,805, respectively | 123,994 | 190,652 | |||||
Product exchange receivables | 1,722 | 3,416 | |||||
Inventories | 93,313 | 95,987 | |||||
Due from affiliates | 31,000 | 13,343 | |||||
Other current assets | 6,313 | 2,777 | |||||
Assets held for sale | 750 | 3,578 | |||||
Total current assets | 257,109 | 314,915 | |||||
Property, plant and equipment, at cost | 849,238 | 767,344 | |||||
Accumulated depreciation | (278,706 | ) | (256,963 | ) | |||
Property, plant and equipment, net | 570,532 | 510,381 | |||||
Goodwill | 19,616 | 19,616 | |||||
Investment in unconsolidated entities | 183,229 | 154,309 | |||||
Debt issuance costs, net | 17,180 | 10,244 | |||||
Other assets, net | 8,432 | 3,531 | |||||
$ | 1,056,098 | $ | 1,012,996 | ||||
Liabilities and Partners’ Capital | |||||||
Current installments of long-term debt and capital lease obligations | $ | 3,185 | $ | 3,206 | |||
Trade and other accounts payable | 110,788 | 140,045 | |||||
Product exchange payables | 10,976 | 12,187 | |||||
Due to affiliates | 3,405 | 3,316 | |||||
Income taxes payable | 1,614 | 10,239 | |||||
Accrued interest payable | 11,071 | 4,492 | |||||
Other accrued liabilities | 6,112 | 4,997 | |||||
Total current liabilities | 147,151 | 178,482 | |||||
Long-term debt and capital leases, less current installments | 565,006 | 474,992 | |||||
Other long-term obligations | 2,050 | 1,560 | |||||
Total liabilities | 714,207 | 655,034 | |||||
Partners’ capital | 341,891 | 357,962 | |||||
Commitments and contingencies | |||||||
$ | 1,056,098 | $ | 1,012,996 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2013 | 20121 | 2013 | 20121 | ||||||||||||
Revenues: | |||||||||||||||
Terminalling and storage * | $ | 27,420 | $ | 21,046 | $ | 56,311 | $ | 41,232 | |||||||
Marine transportation * | 25,497 | 20,714 | 50,477 | 41,576 | |||||||||||
Sulfur services | 3,001 | 2,925 | 6,002 | 5,851 | |||||||||||
Product sales: * | |||||||||||||||
Natural gas services | 187,200 | 164,817 | 446,309 | 336,928 | |||||||||||
Sulfur services | 57,895 | 64,168 | 125,279 | 135,794 | |||||||||||
Terminalling and storage | 57,175 | 60,176 | 107,496 | 120,791 | |||||||||||
302,270 | 289,161 | 679,084 | 593,513 | ||||||||||||
Total revenues | 358,188 | 333,846 | 791,874 | 682,172 | |||||||||||
Costs and expenses: | |||||||||||||||
Cost of products sold: (excluding depreciation and amortization) | |||||||||||||||
Natural gas services * | 181,523 | 163,043 | 430,301 | 330,242 | |||||||||||
Sulfur services * | 44,786 | 47,350 | 97,583 | 102,310 | |||||||||||
Terminalling and storage * | 50,273 | 54,464 | 94,088 | 108,110 | |||||||||||
276,582 | 264,857 | 621,972 | 540,662 | ||||||||||||
Expenses: | |||||||||||||||
Operating expenses * | 43,035 | 34,443 | 86,395 | 71,454 | |||||||||||
Selling, general and administrative * | 6,383 | 5,639 | 13,413 | 11,410 | |||||||||||
Depreciation and amortization | 12,353 | 10,070 | 24,246 | 20,023 | |||||||||||
Total costs and expenses | 338,353 | 315,009 | 746,026 | 643,549 | |||||||||||
Other operating income | 424 | 378 | 796 | 373 | |||||||||||
Operating income | 20,259 | 19,215 | 46,644 | 38,996 | |||||||||||
Other income (expense): | |||||||||||||||
Equity in earnings (loss) of unconsolidated entities | 73 | 799 | (301 | ) | 1,032 | ||||||||||
Interest expense | (10,940 | ) | (8,839 | ) | (19,998 | ) | (16,495 | ) | |||||||
Debt prepayment premium | — | (2,219 | ) | — | (2,470 | ) | |||||||||
Other, net | (14 | ) | 256 | (23 | ) | 548 | |||||||||
Total other expense | (10,881 | ) | (10,003 | ) | (20,322 | ) | (17,385 | ) | |||||||
Net income before taxes | 9,378 | 9,212 | 26,322 | 21,611 | |||||||||||
Income tax expense | (300 | ) | (1,168 | ) | (607 | ) | (2,825 | ) | |||||||
Income from continuing operations | 9,078 | 8,044 | 25,715 | 18,786 | |||||||||||
Income from discontinued operations, net of income taxes | — | 1,984 | — | 3,709 | |||||||||||
Net income | 9,078 | 10,028 | 25,715 | 22,495 | |||||||||||
Less General Partner's interest in net income | (181 | ) | (1,544 | ) | (514 | ) | (3,155 | ) | |||||||
Less pre-acquisition income allocated to Parent | — | (2,836 | ) | — | (4,774 | ) | |||||||||
Less income allocable to unvested restricted units | (23 | ) | — | (66 | ) | — | |||||||||
Limited partners' interest in net income | $ | 8,874 | $ | 5,648 | $ | 25,135 | $ | 14,566 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2013 | 20121 | 2013 | 20121 | ||||||||||||
Revenues: | |||||||||||||||
Terminalling and storage | $ | 17,485 | $ | 14,805 | $ | 34,813 | $ | 30,080 | |||||||
Marine transportation | 6,042 | 4,446 | 12,885 | 9,303 | |||||||||||
Product Sales | 1,839 | 1,958 | 3,048 | 4,147 | |||||||||||
Costs and expenses: | |||||||||||||||
Cost of products sold: (excluding depreciation and amortization) | |||||||||||||||
Natural gas services | 7,036 | 7,707 | 15,592 | 12,022 | |||||||||||
Sulfur services | 4,441 | 3,970 | 8,975 | 8,401 | |||||||||||
Terminalling and storage | 14,189 | 10,695 | 26,150 | 23,344 | |||||||||||
Expenses: | |||||||||||||||
Operating expenses | 17,534 | 14,392 | 35,508 | 28,208 | |||||||||||
Selling, general and administrative | 4,170 | 2,828 | 8,588 | 5,494 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2013 | 20121 | 2013 | 20121 | ||||||||||||
Allocation of net income attributable to: | |||||||||||||||
Limited partner interest: | |||||||||||||||
Continuing operations | $ | 8,874 | $ | 4,090 | $ | 25,135 | $ | 11,518 | |||||||
Discontinued operations | — | 1,558 | — | 3,048 | |||||||||||
$ | 8,874 | $ | 5,648 | $ | 25,135 | $ | 14,566 | ||||||||
General partner interest: | |||||||||||||||
Continuing operations | $ | 181 | $ | 1,118 | $ | 514 | $ | 2,494 | |||||||
Discontinued operations | — | 426 | — | 661 | |||||||||||
$ | 181 | $ | 1,544 | $ | 514 | $ | 3,155 | ||||||||
Net income attributable to limited partners: | |||||||||||||||
Basic: | |||||||||||||||
Continuing operations | $ | 0.33 | $ | 0.18 | $ | 0.95 | $ | 0.51 | |||||||
Discontinued operations | — | 0.07 | — | 0.13 | |||||||||||
$ | 0.33 | $ | 0.25 | $ | 0.95 | $ | 0.64 | ||||||||
Weighted average limited partner units - basic | 26,558 | 23,103 | 26,561 | 22,839 | |||||||||||
Diluted: | |||||||||||||||
Continuing operations | $ | 0.33 | $ | 0.18 | $ | 0.95 | $ | 0.51 | |||||||
Discontinued operations | — | 0.07 | — | 0.13 | |||||||||||
$ | 0.33 | $ | 0.25 | $ | 0.95 | $ | 0.64 | ||||||||
Weighted average limited partner units - diluted | 26,579 | 23,104 | 26,577 | 22,842 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2013 | 20121 | 2013 | 20121 | ||||||||||||
Net income | $ | 9,078 | $ | 10,028 | $ | 25,715 | $ | 22,495 | |||||||
Other comprehensive income adjustments: | |||||||||||||||
Changes in fair values of commodity cash flow hedges | — | — | — | 126 | |||||||||||
Commodity cash flow hedging losses reclassified to earnings | — | (499 | ) | — | (689 | ) | |||||||||
Other comprehensive income | — | (499 | ) | — | (563 | ) | |||||||||
Comprehensive income | $ | 9,078 | $ | 9,529 | $ | 25,715 | $ | 21,932 |
Partners’ Capital | ||||||||||||||||||||||
Parent Net Investment1 | Common Limited | General Partner | Accumulated Other Comprehensive Income | |||||||||||||||||||
Units | Amount | Amount | (Loss) | Total | ||||||||||||||||||
Balances - January 1, 2012 | $ | 51,571 | 20,471,776 | $ | 279,562 | $ | 5,428 | $ | 626 | $ | 337,187 | |||||||||||
Net income | 4,774 | — | 14,566 | 3,155 | — | 22,495 | ||||||||||||||||
Follow-on public offering | — | 2,645,000 | 91,361 | — | — | 91,361 | ||||||||||||||||
General partner contribution | — | — | — | 1,951 | — | 1,951 | ||||||||||||||||
Cash distributions | — | — | (35,253 | ) | (3,635 | ) | — | (38,888 | ) | |||||||||||||
Unit-based compensation | — | — | 118 | — | — | 118 | ||||||||||||||||
Purchase of treasury units | — | (221 | ) | — | — | (221 | ) | |||||||||||||||
Adjustment in fair value of derivatives | — | — | — | — | (563 | ) | (563 | ) | ||||||||||||||
Balances - June 30, 2012 | $ | 56,345 | 23,116,776 | $ | 350,133 | $ | 6,899 | $ | 63 | $ | 413,440 | |||||||||||
Balances - January 1, 2013 | $ | — | 26,566,776 | $ | 349,490 | $ | 8,472 | $ | — | $ | 357,962 | |||||||||||
Net income | — | — | 25,201 | 514 | — | 25,715 | ||||||||||||||||
Issuance of restricted units | — | 63,750 | — | — | — | — | ||||||||||||||||
Forfeiture of restricted units | — | (250 | ) | — | — | — | — | |||||||||||||||
General partner contribution | — | — | — | 37 | — | 37 | ||||||||||||||||
Cash distributions | — | — | (41,135 | ) | (917 | ) | — | (42,052 | ) | |||||||||||||
Unit-based compensation | — | — | 479 | — | — | 479 | ||||||||||||||||
Purchase of treasury units | (6,000 | ) | (250 | ) | — | — | (250 | ) | ||||||||||||||
Balances - June 30, 2013 | $ | — | 26,624,276 | $ | 333,785 | $ | 8,106 | $ | — | $ | 341,891 |
Six Months Ended | |||||||
June 30, | |||||||
2013 | 20121 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 25,715 | $ | 22,495 | |||
Less: Income from discontinued operations | — | (3,709 | ) | ||||
Net income from continuing operations | 25,715 | 18,786 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 24,246 | 20,023 | |||||
Amortization of deferred debt issuance costs | 2,075 | 1,931 | |||||
Amortization of debt discount | 153 | 427 | |||||
Deferred taxes | — | 267 | |||||
(Gain) loss on sale of property, plant and equipment | (796 | ) | 3 | ||||
Equity in (earnings) loss of unconsolidated entities | 301 | (1,032 | ) | ||||
Unit-based compensation | 479 | 118 | |||||
Other | 6 | — | |||||
Change in current assets and liabilities, excluding effects of acquisitions and dispositions: | |||||||
Accounts and other receivables | 66,658 | 21,253 | |||||
Product exchange receivables | 1,694 | 9,517 | |||||
Inventories | 4,946 | (13,866 | ) | ||||
Due from affiliates | (17,657 | ) | (16,729 | ) | |||
Other current assets | (3,530 | ) | 868 | ||||
Trade and other accounts payable | (29,256 | ) | (11,959 | ) | |||
Product exchange payables | (1,211 | ) | (21,534 | ) | |||
Due to affiliates | 89 | 11,967 | |||||
Income taxes payable | 53 | 22 | |||||
Other accrued liabilities | 1,115 | (1,282 | ) | ||||
Accrued interest payable | 6,579 | (540 | ) | ||||
Change in other non-current assets and liabilities | (563 | ) | (574 | ) | |||
Net cash provided by continuing operating activities | 81,096 | 17,666 | |||||
Net cash provided by (used in) discontinued operating activities | (8,678 | ) | 5,210 | ||||
Net cash provided by operating activities | 72,418 | 22,876 | |||||
Cash flows from investing activities: | |||||||
Payments for property, plant and equipment | (28,621 | ) | (51,373 | ) | |||
Acquisitions | (63,004 | ) | — | ||||
Payments for plant turnaround costs | — | (2,403 | ) | ||||
Proceeds from sale of property, plant and equipment | 4,719 | 23 | |||||
Milestone distributions from ECP | — | 2,208 | |||||
Return of investments from unconsolidated entities | 1,357 | 4,297 | |||||
Contributions to unconsolidated entities | (30,578 | ) | (18,123 | ) | |||
Net cash used in continuing investing activities | (116,127 | ) | (65,371 | ) | |||
Net cash used in discontinued investing activities | — | (2,003 | ) | ||||
Net cash used in investing activities | (116,127 | ) | (67,374 | ) | |||
Cash flows from financing activities: | |||||||
Payments of long-term debt | (439,000 | ) | (217,000 | ) | |||
Payments of notes payable and capital lease obligations | (160 | ) | (6,453 | ) | |||
Proceeds from long-term debt | 529,000 | 216,000 | |||||
Net proceeds from follow on offering | — | 91,361 | |||||
General partner contribution | 37 | 1,951 | |||||
Purchase of treasury units | (250 | ) | (221 | ) | |||
Decrease in affiliate funding of investments in unconsolidated entities | — | (2,208 | ) | ||||
Payment of debt issuance costs | (9,011 | ) | (204 | ) | |||
Cash distributions paid | (42,052 | ) | (38,888 | ) | |||
Net cash provided by financing activities | 38,564 | 44,338 | |||||
Net decrease in cash | (5,145 | ) | (160 | ) | |||
Cash at beginning of period | 5,162 | 266 | |||||
Cash at end of period | $ | 17 | $ | 106 |
(1) | General |
(2) | New Accounting Pronouncements |
(3) | Acquisitions |
Inventory and other current assets | $ | 1,572 | |
Property, plant and equipment | 5,964 | ||
Other assets | 5,113 | ||
Other long-term obligations | (446 | ) | |
Total | $ | 12,203 |
Purchase price paid to acquire Talen's | $ | 103,368 | |
Less proceeds received from Martin Resource Management for assets sold (described above) | (56,000 | ) | |
Less excess of carrying value of assets sold to Martin Resource Management over the purchase price paid by Martin Resource Management | (4,268 | ) | |
Total | $ | 43,100 |
Cash | $ | 5,096 | |
Accounts and other receivables, net | 2,682 | ||
Other current assets | 1,547 | ||
Assets held for sale | 3,578 | ||
Property, plant and equipment | 23,838 | ||
Goodwill | 11,279 | ||
Notes payable | (2,971 | ) | |
Current liabilities | (1,480 | ) | |
Other long-term obligations | (469 | ) | |
Total | $ | 43,100 |
Accounts and other receivables, net | $ | 20,599 | |
Inventory | 18,730 | ||
Other current assets | 769 | ||
Property, plant and equipment, net | 24,692 | ||
Current liabilities | (2,424 | ) | |
Total | $ | 62,366 |
(4) | Discontinued operations and divestitures |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Total revenues from third parties1 | $ | — | $ | 28,672 | $ | — | $ | 57,574 | |||||||
Total costs and expenses, excluding depreciation and amortization | — | (27,677 | ) | — | (56,101 | ) | |||||||||
Depreciation and amortization | — | (925 | ) | — | (2,320 | ) | |||||||||
Other operating income | — | — | — | 10 | |||||||||||
Equity in earnings of Waskom, Matagorda, and PIPE | — | 1,769 | — | 4,234 | |||||||||||
Income from discontinued operations before income taxes | — | 1,839 | — | 3,397 | |||||||||||
Income tax benefit | — | (145 | ) | — | (312 | ) | |||||||||
Income from discontinued operations, net of income taxes | $ | — | $ | 1,984 | $ | — | $ | 3,709 |
(5) | Inventories |
June 30, 2013 | December 31, 2012 | ||||||
Natural gas liquids | $ | 36,933 | $ | 33,610 | |||
Sulfur | 7,597 | 14,892 | |||||
Sulfur based products | 14,890 | 17,824 | |||||
Lubricants | 29,607 | 27,366 | |||||
Other | 4,286 | 2,295 | |||||
$ | 93,313 | $ | 95,987 |
(6) | Investments in Unconsolidated Entities and Joint Ventures |
June 30, 2013 | December 31, 2012 | ||||||
Redbird | $ | 167,392 | $ | 153,749 | |||
MET | 15,594 | — | |||||
Caliber | 243 | 560 | |||||
Total investment in unconsolidated entities | $ | 183,229 | $ | 154,309 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Equity in earnings of Waskom1 | $ | — | $ | 1,559 | $ | — | $ | 3,884 | |||||||
Equity in earnings of PIPE1 | — | (21 | ) | — | (69 | ) | |||||||||
Equity in earnings of Matagorda1 | — | 231 | — | 419 | |||||||||||
Equity in earnings of discontinued operations | — | 1,769 | — | 4,234 | |||||||||||
Equity in earnings of Redbird | (362 | ) | 832 | (578 | ) | 1,065 | |||||||||
Equity in earnings of MET | 594 | — | 594 | — | |||||||||||
Equity in earnings of Caliber | (159 | ) | (21 | ) | (317 | ) | (21 | ) | |||||||
Equity in earnings of Pecos Valley | — | (12 | ) | — | (12 | ) | |||||||||
Equity in earnings of unconsolidated entities | 73 | 799 | (301 | ) | 1,032 | ||||||||||
Total equity in earnings of unconsolidated entities | $ | 73 | $ | 2,568 | $ | (301 | ) | $ | 5,266 |
As of December 31, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
Total Assets | Partners' Capital | Revenues | Net Income | Revenues | Net Income | ||||||||||||||||||
2012 | |||||||||||||||||||||||
Waskom | $ | — | $ | — | $ | 27,207 | $ | 3,394 | $ | 58,491 | $ | 8,318 |
As of June 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
Total Assets | Partners' Capital | Revenues | Net Income | Revenues | Net Income | ||||||||||||||||||
2013 | |||||||||||||||||||||||
Cardinal | $ | 768,193 | $ | 475,541 | $ | 10,708 | $ | (392 | ) | $ | 18,795 | $ | 59 | ||||||||||
As of December 31 | |||||||||||||||||||||||
2012 | |||||||||||||||||||||||
Cardinal | $ | 694,767 | $ | 457,297 | $ | 7,898 | $ | (2,343 | ) | $ | 17,067 | $ | (1,733 | ) |
(7) | Derivative Instruments and Hedging Activities |
Effect of Derivative Instruments on the Consolidated and Condensed Statement of Operations For the Three Months Ended June 30, 2013 and 2012 | ||||||||||||||||||||||||||||
Effective Portion | Ineffective Portion and Amount Excluded from Effectiveness Testing | |||||||||||||||||||||||||||
Amount of Gain or (Loss) Recognized in OCI on Derivatives | Location of Gain or (Loss) Reclassified from Accumulated OCI into Income | Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income | Location of Gain or (Loss) Recognized in Income on Derivatives | Amount of Gain or (Loss) Recognized in Income on Derivatives | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||||||
Commodity contracts | $ | — | $ | — | Income from Discontinued Operations | $ | — | $ | 499 | Income from Discontinued Operations | $ | — | $ | — | ||||||||||||||
Total derivatives designated as hedging instruments | $ | — | $ | — | $ | — | $ | 499 | $ | — | $ | — |
Location of Gain or (Loss) Recognized in Income on Derivatives | Amount of Gain or (Loss) Recognized in Income on Derivatives | ||||||||
2013 | 2012 | ||||||||
Derivatives not designated as hedging instruments: | |||||||||
Commodity contracts | Income from Discontinued Operations | $ | — | $ | 1,768 | ||||
Total derivatives not designated as hedging instruments | $ | — | $ | 1,768 |
Effect of Derivative Instruments on the Consolidated and Condensed Statement of Operations For the Six Months Ended June 30, 2013 and 2012 | ||||||||||||||||||||||||||||
Effective Portion | Ineffective Portion and Amount Excluded from Effectiveness Testing | |||||||||||||||||||||||||||
Amount of Gain or (Loss) Recognized in OCI on Derivatives | Location of Gain or (Loss) Reclassified from Accumulated OCI into Income | Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income | Location of Gain or (Loss) Recognized in Income on Derivatives | Amount of Gain or (Loss) Recognized in Income on Derivatives | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||||||
Commodity contracts | $ | — | $ | 126 | Income from Discontinued Operations | $ | — | $ | 685 | Income from Discontinued Operations | $ | — | $ | 4 | ||||||||||||||
Total derivatives designated as hedging instruments | $ | — | $ | 126 | $ | — | $ | 685 | $ | — | $ | 4 |
Location of Gain or (Loss) Recognized in Income on Derivatives | Amount of Gain or (Loss) Recognized in Income on Derivatives | ||||||||
2013 | 2012 | ||||||||
Derivatives not designated as hedging instruments: | |||||||||
Commodity contracts | Income from Discontinued Operations | $ | — | $ | 1,641 | ||||
Total derivatives not designated as hedging instruments | $ | — | $ | 1,641 |
(8) | Fair Value Measurements |
Fair Value Measurements at Reporting Date Using | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
Description | June 30, 2013 | (Level 1) | (Level 2) | (Level 3) | |||||||||||
Liabilities | |||||||||||||||
2018 Senior unsecured notes | $ | 184,501 | $ | — | $ | 184,501 | $ | — | |||||||
2021 Senior unsecured notes | 258,105 | — | 258,105 | — | |||||||||||
Total liabilities | $ | 442,606 | $ | — | $ | 442,606 | $ | — |
Fair Value Measurements at Reporting Date Using | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
Description | December 31, 2012 | (Level 1) | (Level 2) | (Level 3) | |||||||||||
Liabilities | |||||||||||||||
2018 Senior unsecured notes | $ | 187,066 | $ | — | $ | 187,066 | $ | — | |||||||
Total liabilities | $ | 187,066 | $ | — | $ | 187,066 | $ | — |
• | Accounts and other receivables, trade and other accounts payable, accrued interest payable, other accrued liabilities, income taxes payable and due from/to affiliates: The carrying amounts approximate fair value due to the short maturity and highly liquid nature of these instruments, and as such these have been excluded from the table above. |
• | Long-term debt including current portion: The carrying amount of the revolving credit facility approximates fair value due to the debt having a variable interest rate and is in Level 2. The estimated fair value of the senior unsecured notes |
(9) | Long-Term Debt and Capital Leases |
June 30, 2013 | December 31, 2012 | ||||||
$600,000 Revolving loan facility at variable interest rate (2.97%* weighted average at June 30, 2013), due March 2018 secured by substantially all of the Partnership’s assets, including, without limitation, inventory, accounts receivable, vessels, equipment, fixed assets and the interests in the Partnership’s operating subsidiaries and equity method investees | $ | 136,000 | $ | 296,000 | |||
$200,000** Senior notes, 8.875% interest, net of unamortized discount of $1,458 and $1,612, respectively, issued March 2010 and due April 2018, unsecured | 173,542 | 173,388 | |||||
$250,000 Senior notes, 7.250% interest, issued February 2013 and due February 2021, unsecured | 250,000 | — | |||||
$3,315 Note payable to bank, interest rate at 4.75%, maturity date of October 2029, unsecured | 2,914 | 2,971 | |||||
Capital lease obligations | 5,735 | 5,839 | |||||
Total long-term debt and capital lease obligations | 568,191 | 478,198 | |||||
Less current installments | 3,185 | 3,206 | |||||
Long-term debt and capital lease obligations, net of current installments | $ | 565,006 | $ | 474,992 |
(10) | Partners' Capital |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Continuing operations: | |||||||||||||||
Net income attributable to Martin Midstream Partners L.P. | $ | 9,078 | $ | 8,044 | $ | 25,715 | $ | 18,786 | |||||||
Less pre-acquisition income allocated to Parent | — | 2,836 | — | 4,774 | |||||||||||
Less general partner’s interest in net income: | |||||||||||||||
Distributions payable on behalf of IDRs | — | 1,034 | — | 2,259 | |||||||||||
Distributions payable on behalf of general partner interest | 461 | 282 | 917 | 615 | |||||||||||
Distributions payable to the general partner interest in excess of earnings allocable to the general partner interest | (280 | ) | (198 | ) | (403 | ) | (380 | ) | |||||||
Less income allocable to unvested restricted units | 23 | — | 66 | — | |||||||||||
Limited partners’ interest in net income | $ | 8,874 | $ | 4,090 | $ | 25,135 | $ | 11,518 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Discontinued operations: | |||||||||||||||
Net income attributable to Martin Midstream Partners L.P. | $ | — | $ | 1,984 | $ | — | $ | 3,709 | |||||||
Less general partner’s interest in net income: | |||||||||||||||
Distributions payable on behalf of IDRs | — | 394 | — | 598 | |||||||||||
Distributions payable on behalf of general partner interest | — | 107 | — | 163 | |||||||||||
Distributions payable to the general partner interest in excess of earnings allocable to the general partner interest | — | (75 | ) | — | (100 | ) | |||||||||
Limited partners’ interest in net income | $ | — | $ | 1,558 | $ | — | $ | 3,048 |
(11) | Related Party Transactions |
• | providing terminalling and storage services for petroleum products and by-products including the refining, blending and packaging of finished lubricants; |
• | the ownership and/or operation on the Partnership’s behalf of any asset or group of assets owned by it or its affiliates; |
• | any business operated by Martin Resource Management, including the following: |
◦ | providing land transportation of various liquids; |
◦ | distributing fuel oil, sulfuric acid, marine fuel and other liquids; |
◦ | providing marine bunkering and other shore-based marine services in Alabama, Florida, Louisiana, Mississippi and Texas; |
◦ | operating a crude oil gathering business in Stephens, Arkansas; |
◦ | providing crude oil gathering, refining, and marketing services of base oils, asphalt, and distillate products in Smackover, Arkansas; |
◦ | operating an underground NGL storage facility in Arcadia, Louisiana; |
◦ | operating an environmental consulting company; |
◦ | operating an engineering services company; |
◦ | building and marketing sulfur processing equipment; |
◦ | supplying employees and services for the operation of the Partnership's business; |
◦ | operating, for its account and the Partnership's account, the docks, roads, loading and unloading facilities and other common use facilities or access routes at the Partnership's Stanolind terminal; and |
◦ | operating, solely for the Partnership's account, the asphalt facilities in Omaha, Nebraska, Port Neches, Texas and South Houston, Texas. |
• | any business that Martin Resource Management acquires or constructs that has a fair market value of less than $5,000; |
• | any business that Martin Resource Management acquires or constructs that has a fair market value of $5,000 or more if the Partnership has been offered the opportunity to purchase the business for fair market value and the Partnership declines to do so with the concurrence of the conflicts committee; and |
• | any business that Martin Resource Management acquires or constructs where a portion of such business includes a restricted business and the fair market value of the restricted business is $5,000 or more and represents less than 20% of the aggregate value of the entire business to be acquired or constructed; provided that, following completion of the acquisition or construction, the Partnership will be provided the opportunity to purchase the restricted business. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Revenues: | |||||||||||||||
Terminalling and storage | $ | 17,485 | $ | 14,805 | $ | 34,813 | $ | 30,080 | |||||||
Marine transportation | 6,042 | 4,446 | 12,885 | 9,303 | |||||||||||
Product sales: | |||||||||||||||
Natural gas services | — | 30 | 9 | 105 | |||||||||||
Sulfur services | 1,518 | 1,645 | 2,651 | 3,360 | |||||||||||
Terminalling and storage | 321 | 283 | 388 | 682 | |||||||||||
1,839 | 1,958 | 3,048 | 4,147 | ||||||||||||
$ | 25,366 | $ | 21,209 | $ | 50,746 | $ | 43,530 |
Cost of products sold: | |||||||||||||||
Natural gas services | $ | 7,036 | $ | 7,707 | $ | 15,592 | $ | 12,022 | |||||||
Sulfur services | 4,441 | 3,970 | 8,975 | 8,401 | |||||||||||
Terminalling and storage | 14,189 | 10,695 | 26,150 | 23,344 | |||||||||||
$ | 25,666 | $ | 22,372 | $ | 50,717 | $ | 43,767 |
Expenses: | |||||||||||||||
Operating expenses | |||||||||||||||
Marine transportation | $ | 9,505 | $ | 7,002 | $ | 19,563 | $ | 13,981 | |||||||
Natural gas services | 469 | 444 | 954 | 915 | |||||||||||
Sulfur services | 1,935 | 1,985 | 4,290 | 3,302 | |||||||||||
Terminalling and storage | 5,625 | 4,961 | 10,701 | 10,010 | |||||||||||
$ | 17,534 | $ | 14,392 | $ | 35,508 | $ | 28,208 |
Selling, general and administrative: | |||||||||||||||
Marine transportation | $ | 15 | $ | 27 | $ | 30 | $ | 32 | |||||||
Natural gas services | 409 | 382 | 988 | 686 | |||||||||||
Sulfur services | 806 | 735 | 1,612 | 1,446 | |||||||||||
Terminalling and storage | 283 | 39 | 644 | 39 | |||||||||||
Indirect overhead allocation, net of reimbursement | 2,657 | 1,645 | 5,314 | 3,291 | |||||||||||
$ | 4,170 | $ | 2,828 | $ | 8,588 | $ | 5,494 |
(12) | Income Taxes |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Current: | |||||||||||||||
Federal | $ | — | $ | 491 | $ | — | $ | 1,709 | |||||||
State | 300 | 417 | 607 | 859 | |||||||||||
300 | 908 | 607 | 2,568 | ||||||||||||
Deferred: | |||||||||||||||
Federal | — | 115 | — | (55 | ) | ||||||||||
Total income tax expense | $ | 300 | $ | 1,023 | $ | 607 | $ | 2,513 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Current: | |||||||||||||||
Federal | $ | — | $ | 487 | $ | — | $ | 1,705 | |||||||
State | 300 | 414 | 607 | 854 | |||||||||||
300 | 901 | 607 | 2,559 | ||||||||||||
Deferred: | |||||||||||||||
Federal | — | 267 | — | 266 | |||||||||||
Total income tax expense from continuing operations | $ | 300 | $ | 1,168 | $ | 607 | $ | 2,825 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Current: | |||||||||||||||
Federal | $ | — | $ | 4 | $ | — | $ | 4 | |||||||
State | — | 3 | — | 5 | |||||||||||
— | 7 | — | 9 | ||||||||||||
Deferred: | |||||||||||||||
Federal | — | (152 | ) | — | (321 | ) | |||||||||
Total income tax (benefit) from discontinued operations | $ | — | $ | (145 | ) | $ | — | $ | (312 | ) |
(13) | Business Segments |
Operating Revenues | Intersegment Revenues Eliminations | Operating Revenues after Eliminations | Depreciation and Amortization | Operating Income (loss) after eliminations | Capital Expenditures | ||||||||||||||||||
Three Months Ended June 30, 2013 | |||||||||||||||||||||||
Terminalling and storage | $ | 85,762 | $ | (1,167 | ) | $ | 84,595 | $ | 7,297 | $ | 8,635 | $ | 12,319 | ||||||||||
Natural gas services | 188,715 | — | 188,715 | 554 | 4,930 | — | |||||||||||||||||
Sulfur services | 60,896 | — | 60,896 | 1,957 | 7,701 | 422 | |||||||||||||||||
Marine transportation | 25,021 | (1,039 | ) | 23,982 | 2,545 | 2,541 | 1,165 | ||||||||||||||||
Indirect selling, general and administrative | — | — | — | — | (3,548 | ) | — | ||||||||||||||||
Total | $ | 360,394 | $ | (2,206 | ) | $ | 358,188 | $ | 12,353 | $ | 20,259 | $ | 13,906 |
Operating Revenues | Intersegment Revenues Eliminations | Operating Revenues after Eliminations | Depreciation and Amortization | Operating Income (loss) after eliminations | Capital Expenditures | ||||||||||||||||||
Three Months Ended June 30, 2012 | |||||||||||||||||||||||
Terminalling and storage | $ | 82,398 | $ | (1,176 | ) | $ | 81,222 | $ | 5,223 | $ | 6,899 | $ | 19,210 | ||||||||||
Natural gas services | 164,817 | — | 164,817 | 144 | (33 | ) | 253 | ||||||||||||||||
Sulfur services | 67,093 | — | 67,093 | 1,782 | 13,420 | 667 | |||||||||||||||||
Marine transportation | 21,466 | (752 | ) | 20,714 | 2,921 | 1,278 | 208 | ||||||||||||||||
Indirect selling, general and administrative | — | — | — | — | (2,349 | ) | — | ||||||||||||||||
Total | $ | 335,774 | $ | (1,928 | ) | $ | 333,846 | $ | 10,070 | $ | 19,215 | $ | 20,338 | ||||||||||
Six Months Ended June 30, 2013 | |||||||||||||||||||||||
Terminalling and storage | $ | 166,115 | $ | (2,308 | ) | $ | 163,807 | $ | 14,393 | $ | 18,618 | $ | 26,368 | ||||||||||
Natural gas services | 448,154 | — | 448,154 | 846 | 13,392 | 115 | |||||||||||||||||
Sulfur services | 131,281 | — | 131,281 | 3,923 | 17,045 | 623 | |||||||||||||||||
Marine transportation | 50,253 | (1,621 | ) | 48,632 | 5,084 | 5,080 | 1,515 | ||||||||||||||||
Indirect selling, general and administrative | — | — | — | — | (7,491 | ) | — | ||||||||||||||||
Total | $ | 795,803 | $ | (3,929 | ) | $ | 791,874 | $ | 24,246 | $ | 46,644 | $ | 28,621 | ||||||||||
Six Months Ended June 30, 2012 | |||||||||||||||||||||||
Terminalling and storage | $ | 164,374 | $ | (2,351 | ) | $ | 162,023 | $ | 10,199 | $ | 13,678 | $ | 43,534 | ||||||||||
Natural gas services | 336,928 | — | 336,928 | 287 | 3,187 | 268 | |||||||||||||||||
Sulfur services | 141,645 | — | 141,645 | 3,575 | 27,047 | 1,655 | |||||||||||||||||
Marine transportation | 43,033 | (1,457 | ) | 41,576 | 5,962 | (149 | ) | 5,916 | |||||||||||||||
Indirect selling, general and administrative | — | — | — | — | (4,767 | ) | — | ||||||||||||||||
Total | $ | 685,980 | $ | (3,808 | ) | $ | 682,172 | $ | 20,023 | $ | 38,996 | $ | 51,373 |
June 30, 2013 | December 31, 2012 | ||||||
Total assets: | |||||||
Terminalling and storage | $ | 406,874 | $ | 376,330 | |||
Natural gas services | 340,954 | 331,064 | |||||
Sulfur services | 147,842 | 155,639 | |||||
Marine transportation | 160,428 | 149,963 | |||||
Total assets | $ | 1,056,098 | $ | 1,012,996 |
(14) | Unit Based Awards |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Employees | $ | 155 | $ | 143 | $ | 351 | $ | 167 | |||||||
Non-employee directors | 68 | 118 | 128 | 150 | |||||||||||
Total unit-based compensation expense | $ | 223 | $ | 261 | $ | 479 | $ | 317 |
Number of Units | Weighted Average Grant-Date Fair Value Per Unit | ||||||
Non-vested, beginning of period | 13,248 | $ | 39.85 | ||||
Granted | 63,750 | $ | 32.29 | ||||
Vested | (4,500 | ) | $ | 39.46 | |||
Forfeited | (250 | ) | 31.06 | ||||
Non-Vested, end of period | 72,248 | $ | 33.23 | ||||
Aggregate intrinsic value, end of period | $ | 3,185 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Aggregate intrinsic value of units vested | $ | — | $ | 11 | $ | 153 | $ | 214 | |||||||
Fair value of units vested | $ | — | $ | — | $ | 157 | $ | 214 |
(15) | Condensed Consolidating Financial Information |
(16) | Commitments and Contingencies |
(17) | Subsequent Events |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
• | Terminalling and storage services for petroleum products and by-products including the refining, blending and packaging of finished lubricants; |
• | Natural gas liquids distribution services and natural gas storage; |
• | Sulfur and sulfur-based products gathering, processing, marketing, manufacturing and distribution; and |
• | Marine transportation services for petroleum products and by-products. |
Description | Judgments and Uncertainties | Effect if Actual Results Differ from Estimates and Assumptions | ||
Allowance for Doubtful Accounts | ||||
We evaluate our allowance for doubtful accounts on an ongoing basis and record adjustments when, in management's judgment, circumstances warrant. Reserves are recorded to reduce receivables to the amount ultimately expected to be collected. | We evaluate the collectability of our accounts receivable based on factors such as the customer's ability to pay, the age of the receivable and our historical collection experience. A deterioration in any of these factors could result in an increase in the allowance for doubtful accounts balance. | If actual collection results are not consistent with our judgments, we may experience increase in uncollectible receivables. A 10% increase in our allowance for doubtful accounts would result in a decrease in net income of approximately $0.3 million. | ||
Depreciation | ||||
Depreciation expense is computed using the straight-line method over the useful life of the assets. | Determination of depreciation expense requires judgment regarding estimated useful lives and salvage values of property, plant and equipment. As circumstances warrant, estimates are reviewed to determine if any changes in the underlying assumptions are needed. | The lives of our fixed assets range from 3 - 25 years. If the depreciable lives of our assets were decreased by 10%, we estimate that annual depreciation expense would increase approximately $5.2 million, resulting in a corresponding reduction in net income. | ||
Impairment of Long-Lived Assets | ||||
We periodically evaluate whether the carrying value of long-lived assets has been impaired when circumstances indicate the carrying value of the assets may not be recoverable. These evaluations are based on undiscounted cash flow projections over the remaining useful life of the asset. The carrying value is not recoverable if it exceeds the sum of the undiscounted cash flows. Any impairment loss is measured as the excess of the asset's carrying value over its fair value. | Our impairment analyses require management to use judgment in estimating future cash flows and useful lives, as well as assessing the probability of different outcomes. | Applying this impairment review methodology, we have recorded no impairment charges during the periods ended June 30, 2013 and 2012. If actual events are not consistent with our estimates and assumptions or our estimates and assumptions change to to new information, we may incur an impairment charge. | ||
Impairment of Goodwill | ||||
Goodwill is subject to a fair-value based impairment test on an annual basis, or more frequently if events or changes in circumstances indicate that the fair value of any of our reporting units is less than its carrying amount. | We determine fair value using accepted valuation techniques, including discounted cash flow, the guideline public company method and the guideline transaction method. These analyses require management to make assumptions and estimates regarding industry and economic factors, future operating results and discount rates. We conduct impairment testing using present economic conditions, as well as future expectations. | We completed the most recent annual review of goodwill as of August 31, 2012 and determined there was no impairment. Additionally, management is aware of no change in circumstances which indicate a need for an interim impairment evaluation. | ||
Impairment of Investments in Unconsolidated Entities | ||||
We evaluate our investments in unconsolidated entities for impairment when, in management's opinion, events or changes in circumstances indicate that the carrying value of an investment may have experienced a decline. If evidence of loss has occurred, we compare the estimated fair value of the investment to the carrying value to determine whether an impairment has occurred. | Our evaluation requires management to apply judgment in estimating future cash flows, asset fair values, useful lives of the assets, selection of a risk-adjusted discount rate and assessing the probability of differing outcomes. | Utilizing the methodology described herein, we have recorded no impairment charges on investments in unconsolidated entities during the periods ended June 30, 2013 and 2012. If our evaluation indicated the fair value is less than the carrying value, the excess amount would be recorded as an impairment. | ||
Purchase Price Allocations |
We allocate the purchase price of an acquired business to its identifiable assets (including identifiable intangible assets) and liabilities based on their fair values at the date of acquisition. Any excess of purchase price in excess of amounts allocated to identifiable assets and liabilities is recorded as goodwill. As additional information becomes available, we may adjust the preliminary allocation for a period of up to one year. | The determination of fair values of acquired assets and liabilities requires a significant level of management judgment. Fair values are estimated using various methods as deemed appropriate. For significant transactions, third party assessments may be engaged to assist in the valuation process. | If subsequent factors indicate that estimates and assumptions used to allocate costs to acquired assets and liabilities differ from actual results, the allocation between goodwill, other intangible assets and fixed assets could significantly differ. Any such differences could impact future earnings through depreciation and amortization expense. Additionally, if estimated results supporting the valuation of goodwill or other intangible assets is not achieved, impairments could result. | ||
Asset Retirement Obligations | ||||
Asset retirement obligations (“AROs”) associated with a contractual or regulatory remediation requirement are recorded at fair value in the period in which the obligation can be reasonably estimated and depreciated over the life of the related asset or contractual term. The liability is determined using a credit-adjusted risk-free interest rate and is accreted over time until the obligation is settled. | Determining the fair value of AROs requires management judgment to evaluate required remediation activities, estimate the cost of those activities and determine the appropriate interest rate. | If actual results differ from judgments and assumptions used in valuing an ARO, we may experience significant changes in ARO balances. The establishment of an ARO has no initial impact on earnings. | ||
Environmental Liabilities | ||||
We estimate environmental liabilities using both internal and external resources. Activities include feasibility studies and other evaluations management considers appropriate. Environmental liabilities are recorded in the period in which the obligation can be reasonably estimated. | Estimating environmental liabilities requires significant management judgment as well as possible use of third party specialists knowledgeable in such matters. | Environmental liabilities have not adversely affected our results of operations or financial condition in the past, and we do not anticipate that they will in the future. |
• | providing land transportation of various liquids using a fleet of trucks and road vehicles and road trailers; |
• | distributing fuel oil, asphalt, sulfuric acid, marine fuel and other liquids; |
• | providing marine bunkering and other shore-based marine services in Alabama, Louisiana, Mississippi and Texas; |
• | operating a crude oil gathering business in Stephens, Arkansas; |
• | providing crude oil gathering, refining, and marketing services of base oils, asphalt, and distillate products in Smackover, Arkansas; |
• | operating an underground NGL storage facility in Arcadia, Louisiana; |
• | operating an environmental consulting company; |
• | operating an engineering services company; |
• | building and marketing of sulfur processing equipment; |
• | supplying employees and services for the operation of our business; |
• | operating, for its account and our account, the docks, roads, loading and unloading facilities and other common use facilities or access routes at our Stanolind terminal; and |
• | operating, solely for our account, the asphalt facilities in Omaha, Nebraska, Port Neches, Texas and South Houston, Texas. |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net income | $ | 9,078 | $ | 10,028 | $ | 25,715 | $ | 22,495 | |||||||
Less: Income from discontinued operations, net of income taxes | — | (1,984 | ) | — | (3,709 | ) | |||||||||
Income from continuing operations | 9,078 | 8,044 | 25,715 | 18,786 | |||||||||||
Adjustments: | |||||||||||||||
Interest expense | 10,940 | 8,839 | 19,998 | 16,495 | |||||||||||
Income tax expense | 300 | 1,168 | 607 | 2,825 | |||||||||||
Depreciation and amortization | 12,353 | 10,070 | 24,246 | 20,023 | |||||||||||
EBITDA | 32,671 | 28,121 | 70,566 | 58,129 | |||||||||||
Adjustments: | |||||||||||||||
Equity in (earnings) loss of unconsolidated entities | (73 | ) | (799 | ) | 301 | (1,032 | ) | ||||||||
(Gain) loss on sale of property, plant and equipment | (424 | ) | (3 | ) | (796 | ) | 3 | ||||||||
Debt prepayment premium | — | 2,219 | — | 2,470 | |||||||||||
Distributions equivalents from unconsolidated entities | 1,436 | 1,206 | 1,961 | 2,278 | |||||||||||
Mont Belvieu indemnity escrow payment | — | (375 | ) | — | (375 | ) | |||||||||
Unit-based compensation | 223 | 62 | 479 | 118 | |||||||||||
Adjusted EBITDA | 33,833 | 30,431 | 72,511 | 61,591 | |||||||||||
Adjustments: | |||||||||||||||
Interest expense | (10,940 | ) | (8,839 | ) | (19,998 | ) | (16,495 | ) | |||||||
Income tax expense | (300 | ) | (1,168 | ) | (607 | ) | (2,825 | ) | |||||||
Amortization of deferred debt issuance costs | 806 | 1,241 | 2,075 | 1,931 | |||||||||||
Amortization of debt discount | 77 | 340 | 153 | 427 | |||||||||||
Payments of installment notes payable and capital lease obligations | (79 | ) | (46 | ) | (160 | ) | (176 | ) | |||||||
Deferred income taxes | — | 267 | — | 267 | |||||||||||
Payments for plant turnaround costs | — | (2,098 | ) | — | (2,403 | ) | |||||||||
Maintenance capital expenditures | (2,822 | ) | (1,088 | ) | (4,500 | ) | (2,278 | ) | |||||||
Distributable Cash Flow | $ | 20,575 | $ | 19,040 | $ | 49,474 | $ | 40,039 |
Operating Revenues | Intersegment Revenues Eliminations | Operating Revenues after Eliminations | Operating Income (loss) | Operating Income Intersegment Eliminations | Operating Income (loss) after Eliminations | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Three Months Ended June 30, 2013 | |||||||||||||||||||||||
Terminalling and storage | $ | 85,762 | $ | (1,167 | ) | $ | 84,595 | $ | 8,936 | $ | (301 | ) | $ | 8,635 | |||||||||
Natural gas services | 188,715 | — | 188,715 | 4,560 | 370 | 4,930 | |||||||||||||||||
Sulfur services | 60,896 | — | 60,896 | 8,860 | (1,159 | ) | 7,701 | ||||||||||||||||
Marine transportation | 25,021 | (1,039 | ) | 23,982 | 1,451 | 1,090 | 2,541 | ||||||||||||||||
Indirect selling, general and administrative | — | — | — | (3,548 | ) | — | (3,548 | ) | |||||||||||||||
Total | $ | 360,394 | $ | (2,206 | ) | $ | 358,188 | $ | 20,259 | $ | — | $ | 20,259 | ||||||||||
Three Months Ended June 30, 2012 | |||||||||||||||||||||||
Terminalling and storage | $ | 82,398 | $ | (1,176 | ) | $ | 81,222 | $ | 7,553 | $ | (654 | ) | $ | 6,899 | |||||||||
Natural gas services | 164,817 | — | 164,817 | (417 | ) | 384 | (33 | ) | |||||||||||||||
Sulfur services | 67,093 | — | 67,093 | 12,278 | 1,142 | 13,420 | |||||||||||||||||
Marine transportation | 21,466 | (752 | ) | 20,714 | 2,150 | (872 | ) | 1,278 | |||||||||||||||
Indirect selling, general and administrative | — | — | — | (2,349 | ) | — | (2,349 | ) | |||||||||||||||
Total | $ | 335,774 | $ | (1,928 | ) | $ | 333,846 | $ | 19,215 | $ | — | $ | 19,215 |
Operating Revenues | Intersegment Revenues Eliminations | Operating Revenues after Eliminations | Operating Income (loss) | Operating Income Intersegment Eliminations | Operating Income (loss) after Eliminations | ||||||||||||||||||
Six Months Ended June 30, 2013 | |||||||||||||||||||||||
Terminalling and storage | $ | 166,115 | $ | (2,308 | ) | $ | 163,807 | $ | 19,605 | $ | (987 | ) | $ | 18,618 | |||||||||
Natural gas services | 448,154 | — | 448,154 | 12,664 | 728 | 13,392 | |||||||||||||||||
Sulfur services | 131,281 | — | 131,281 | 18,906 | (1,861 | ) | 17,045 | ||||||||||||||||
Marine transportation | 50,253 | (1,621 | ) | 48,632 | 2,960 | 2,120 | 5,080 | ||||||||||||||||
Indirect selling, general and administrative | — | — | — | (7,491 | ) | — | (7,491 | ) | |||||||||||||||
Total | $ | 795,803 | $ | (3,929 | ) | $ | 791,874 | $ | 46,644 | $ | — | $ | 46,644 |
Operating Revenues | Intersegment Revenues Eliminations | Operating Revenues after Eliminations | Operating Income (loss) | Operating Income Intersegment Eliminations | Operating Income (loss) after Eliminations | ||||||||||||||||||
Six Months Ended June 30, 2012 | |||||||||||||||||||||||
Terminalling and storage | $ | 164,374 | $ | (2,351 | ) | $ | 162,023 | $ | 14,986 | $ | (1,308 | ) | $ | 13,678 | |||||||||
Natural gas services | 336,928 | — | 336,928 | 2,426 | 761 | 3,187 | |||||||||||||||||
Sulfur services | 141,645 | — | 141,645 | 24,813 | 2,234 | 27,047 | |||||||||||||||||
Marine transportation | 43,033 | (1,457 | ) | 41,576 | 1,538 | (1,687 | ) | (149 | ) | ||||||||||||||
Indirect selling, general and administrative | — | — | — | (4,767 | ) | — | (4,767 | ) | |||||||||||||||
Total | $ | 685,980 | $ | (3,808 | ) | $ | 682,172 | $ | 38,996 | $ | — | $ | 38,996 |
Three Months Ended June 30, | % Change | ||||||||
2013 | 2012 | ||||||||
(In thousands, except BBL per day) | |||||||||
Revenues: | |||||||||
Services | $ | 28,587 | $ | 22,222 | 29% | ||||
Products | 57,175 | 60,176 | (5)% | ||||||
Total revenues | 85,762 | 82,398 | 4% | ||||||
Cost of products sold | 51,139 | 54,987 | (7)% | ||||||
Operating expenses | 17,739 | 13,923 | 27% | ||||||
Selling, general and administrative expenses | 748 | 1,087 | (31)% | ||||||
Depreciation and amortization | 7,297 | 5,223 | 40% | ||||||
8,839 | 7,178 | 23% | |||||||
Other operating income | 97 | 375 | (74)% | ||||||
Operating income | $ | 8,936 | $ | 7,553 | 18% | ||||
Lubricant sales volumes (gallons) | 10,450 | 9,957 | 5% | ||||||
Shore-based throughput volumes (gallons) | 67,069 | 57,240 | 17% | ||||||
Smackover refinery throughput volumes (BBL per day) | 7,010 | 3,460 | 103% |
Six Months Ended June 30, | % Change | ||||||||
2013 | 2012 | ||||||||
(In thousands, except BBL per day) | |||||||||
Revenues: | |||||||||
Services | $ | 58,619 | $ | 43,583 | 34% | ||||
Products | 107,496 | 120,791 | (11)% | ||||||
Total revenues | 166,115 | 164,374 | 1% | ||||||
Cost of products sold | 95,409 | 109,153 | (13)% | ||||||
Operating expenses | 35,433 | 27,967 | 27% | ||||||
Selling, general and administrative expenses | 1,443 | 2,464 | (41)% | ||||||
Depreciation and amortization | 14,393 | 10,199 | 41% | ||||||
19,437 | 14,591 | 33% | |||||||
Other operating income | 168 | 395 | (57)% | ||||||
Operating income | $ | 19,605 | $ | 14,986 | 31% | ||||
Lubricant sales volumes (gallons) | 19,247 | 19,844 | (3)% | ||||||
Shore-based throughput volumes (gallons) | 142,017 | 110,973 | 28% | ||||||
Smackover refinery throughput volumes (BBL per day) | 6,730 | 5,076 | 33% |
Three Months Ended June 30, | % Change | ||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Revenues: | |||||||||
Marine transportation | $ | 1,515 | $ | — | |||||
Products | 187,200 | 164,817 | 14% | ||||||
Total revenues | 188,715 | 164,817 | 14% | ||||||
Cost of products sold | 181,893 | 163,427 | 11% | ||||||
Operating expenses | 990 | 804 | 23% | ||||||
Selling, general and administrative expenses | 718 | 859 | (16)% | ||||||
Depreciation and amortization | 554 | 144 | 285% | ||||||
Operating income (loss) | $ | 4,560 | $ | (417 | ) | (1,194)% | |||
Distribution equivalents from unconsolidated entities | $ | 1,436 | $ | 1,206 | 19% | ||||
NGL sales volumes (Bbls) | 3,016 | 2,436 | 24% |
Six Months Ended June 30, | % Change | ||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Revenues: | |||||||||
Marine transportation | $ | 1,845 | $ | — | |||||
Products | 446,309 | 336,928 | 32% | ||||||
Total revenues | 448,154 | 336,928 | 33% | ||||||
Cost of products sold | 431,029 | 331,003 | 30% | ||||||
Operating expenses | 1,971 | 1,756 | 12% | ||||||
Selling, general and administrative expenses | 1,644 | 1,456 | 13% | ||||||
Depreciation and amortization | 846 | 287 | 195% | ||||||
Operating income | $ | 12,664 | $ | 2,426 | 422% | ||||
Distribution equivalents from unconsolidated entities | $ | 1,961 | $ | 2,278 | (14)% | ||||
NGL sales volumes (Bbls) | 6,721 | 4,733 | 42% |
Three Months Ended June 30, | % Change | ||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Revenues: | |||||||||
Services | $ | 3,001 | $ | 2,925 | 3% | ||||
Products | 57,895 | 64,168 | (10)% | ||||||
Total revenues | 60,896 | 67,093 | (9)% | ||||||
Cost of products sold | 44,877 | 47,440 | (5)% | ||||||
Operating expenses | 4,186 | 4,614 | (9)% | ||||||
Selling, general and administrative expenses | 1,016 | 982 | 3% | ||||||
Depreciation and amortization | 1,957 | 1,782 | 10% | ||||||
8,860 | 12,275 | (28)% | |||||||
Other operating income | — | 3 | (100)% | ||||||
Operating income | $ | 8,860 | $ | 12,278 | (28)% | ||||
Sulfur (long tons) | 209.1 | 301.4 | (31)% | ||||||
Fertilizer (long tons) | 71.3 | 83.6 | (15)% | ||||||
Total sulfur services volumes (long tons) | 280.4 | 385.0 | (27)% |
Six Months Ended June 30, | % Change | ||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Revenues: | |||||||||
Services | $ | 6,002 | $ | 5,851 | 3% | ||||
Products | 125,279 | 135,794 | (8)% | ||||||
Total revenues | 131,281 | 141,645 | (7)% | ||||||
Cost of products sold | 97,764 | 102,491 | (5)% | ||||||
Operating expenses | 8,625 | 8,807 | (2)% | ||||||
Selling, general and administrative expenses | 2,063 | 1,937 | 7% | ||||||
Depreciation and amortization | 3,923 | 3,575 | 10% | ||||||
18,906 | 24,835 | (24)% | |||||||
Other operating loss | — | (22 | ) | (100)% | |||||
Operating income | $ | 18,906 | $ | 24,813 | (24)% | ||||
Sulfur (long tons) | 403.1 | 580.4 | (31)% | ||||||
Fertilizer (long tons) | 175.0 | 177.5 | (1)% | ||||||
Total sulfur services volumes (long tons) | 578.1 | 757.9 | (24)% |
Three Months Ended June 30, | % Change | ||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Revenues | $ | 25,021 | $ | 21,466 | 17% | ||||
Operating expenses | 20,999 | 16,033 | 31% | ||||||
Selling, general and administrative expenses | 353 | 362 | (2)% | ||||||
Depreciation and amortization | 2,545 | 2,921 | (13)% | ||||||
1,124 | 2,150 | (48)% | |||||||
Other operating income | 327 | — | |||||||
Operating income | $ | 1,451 | $ | 2,150 | (33)% |
Six Months Ended June 30, | % Change | ||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Revenues | $ | 50,253 | $ | 43,033 | 17% | ||||
Operating expenses | 42,065 | 34,747 | 21% | ||||||
Selling, general and administrative expenses | 772 | 786 | (2)% | ||||||
Depreciation and amortization | 5,084 | 5,962 | (15)% | ||||||
2,332 | 1,538 | 52% | |||||||
Other operating income | 628 | — | |||||||
Operating income | $ | 2,960 | $ | 1,538 | 92% |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(In thousands) | (In thousands) | ||||||||||||||
Equity in earnings of Redbird | $ | (362 | ) | $ | 832 | $ | (578 | ) | $ | 1,065 | |||||
Equity in earnings of MET | 594 | — | 594 | — | |||||||||||
Equity in earnings of Caliber | (159 | ) | (21 | ) | (317 | ) | (21 | ) | |||||||
Equity in earnings of Pecos Valley | — | (12 | ) | — | (12 | ) | |||||||||
Equity in earnings (loss) of unconsolidated entities | $ | 73 | $ | 799 | $ | (301 | ) | $ | 1,032 |
• | For the six months ended June 30, 2013, we spent $24.1 million for expansion capital expenditures and $4.5 million for maintenance capital expenditures related to continuing operations. Our expansion capital expenditures were made in connection with construction projects associated with our terminalling and storage and sulfur services segments. Our maintenance capital expenditures were primarily made in our terminalling segment for routine improvements on the facilities as well as marine transportation segment dry dockings of our vessels pursuant to the United States Coast Guard requirements. |
• | For the six months ended June 30, 2012, we spent $49.1 million for expansion capital expenditures and $2.3 million for maintenance capital expenditures related to continuing operations, and $2.4 million for plant turnaround costs related to continuing operations. Our expansion capital expenditures were made in connection with construction projects associated with our terminalling and storage and marine segments. Our maintenance capital expenditures were primarily made in our terminalling segment for routine improvements on the facilities as well as marine transportation segment dry dockings of our vessels pursuant to the United States Coast Guard requirements. For the six months ended June 30, 2012, we spent $0.5 million for expansion and $0.5 million for maintenance capital expenditures related to discontinued operations. |
Payments due by period | |||||||||||||||||||
Type of Obligation | Total Obligation | Less than One Year | 1-3 Years | 3-5 Years | Due Thereafter | ||||||||||||||
Revolving credit facility | $ | 136,000 | $ | — | $ | — | $ | 136,000 | $ | — | |||||||||
2018 Senior unsecured notes | 173,542 | — | — | 173,542 | — | ||||||||||||||
2021 Senior unsecured notes | 250,000 | — | — | — | 250,000 | ||||||||||||||
Note payable | 2,914 | 2,914 | |||||||||||||||||
Capital leases including current maturities | 5,735 | 271 | 708 | 4,756 | — | ||||||||||||||
Non-competition agreements | 50 | 50 | — | — | — | ||||||||||||||
Throughput commitment | 46,753 | 4,873 | 10,221 | 10,888 | 20,771 | ||||||||||||||
Operating leases | 52,072 | 12,196 | 21,258 | 11,281 | 7,337 | ||||||||||||||
Interest expense: ¹ | |||||||||||||||||||
Revolving credit facility | 19,131 | 4,036 | 8,073 | 7,022 | — | ||||||||||||||
2018 Senior unsecured notes | 75,067 | 15,531 | 31,062 | 28,474 | — | ||||||||||||||
2021 Senior unsecured notes | 138,958 | 18,125 | 36,250 | 36,250 | 48,333 | ||||||||||||||
Note payable | 139 | 139 | — | — | — | ||||||||||||||
Capital leases | 2,652 | 892 | 1,634 | 126 | — | ||||||||||||||
Total contractual cash obligations | $ | 903,013 | $ | 59,027 | $ | 109,206 | $ | 408,339 | $ | 326,441 |
Leverage Ratio | Base Rate Loans | Eurodollar Rate Loans | Letters of Credit | |||||
Less than 3.00 to 1.00 | 1.00 | % | 2.00 | % | 2.00 | % | ||
Greater than or equal to 3.00 to 1.00 and less than 3.50 to 1.00 | 1.25 | % | 2.25 | % | 2.25 | % | ||
Greater than or equal to 3.50 to 1.00 and less than 4.00 to 1.00 | 1.50 | % | 2.50 | % | 2.50 | % | ||
Greater than or equal to 4.00 to 1.00 and less than 4.50 to 1.00 | 1.75 | % | 2.75 | % | 2.75 | % | ||
Greater than or equal to 4.50 to 1.00 | 2.00 | % | 3.00 | % | 3.00 | % |
Item 3. | Quantitative and Qualitative Disclosures about Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 6. | Exhibits |
Martin Midstream Partners L.P. | ||||
By: | Martin Midstream GP LLC | |||
It’s General Partner | ||||
Date: August 5, 2013 | By: | /s/ Ruben S. Martin | ||
Ruben S. Martin | ||||
President and Chief Executive Officer |
Exhibit Number | Exhibit Name |
3.1 | Certificate of Limited Partnership of Martin Midstream Partners L.P. (the “Partnership”), dated June 21, 2002 (filed as Exhibit 3.1 to the Partnership's Registration Statement on Form S-1 (Reg. No. 333-91706), filed July 1, 2002, and incorporated herein by reference). |
3.2 | Second Amended and Restated Agreement of Limited Partnership of the Partnership, dated as of November 25, 2009 (filed as Exhibit 10.1 to the Partnership's Amendment to Current Report on Form 8-K/A (SEC File No. 000-50056), filed January 19, 2010, and incorporated herein by reference). |
3.3 | Amendment No. 2 to the Second Amended and Restated Agreement of Limited Partnership of the Partnership dated January 31, 2011 (filed as Exhibit 3.1 to the Partnership's Current Report on Form 8-K (SEC File No. 000-50056), filed February 1, 2011, and incorporated herein by reference). |
3.4 | Amendment No. 3 to the Second Amended and Restated Agreement of Limited Partnership of the Partnership dated October 2, 2012 (filed as Exhibit 10.5 to the Partnership's Current Report on Form 8-K (SEC File No. 000-50056), filed October 9, 2012, and incorporated herein by reference). |
3.5 | Certificate of Limited Partnership of Martin Operating Partnership L.P. (the “Operating Partnership”), dated June 21, 2002 (filed as Exhibit 3.3 to the Partnership's Registration Statement on Form S-1 (Reg. No. 333-91706), filed July 1, 2002, and incorporated herein by reference). |
3.6 | Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated November 6, 2002 (filed as Exhibit 3.2 to the Partnership's Current Report on Form 8-K (SEC File No. 000-50056), filed November 19, 2002, and incorporated herein by reference). |
3.7 | Certificate of Formation of Martin Midstream GP LLC (the “General Partner”), dated June 21, 2002 (filed as Exhibit 3.5 to the Partnership's Registration Statement on Form S-1 (Reg. No. 333-91706), filed July 1, 2002, and incorporated herein by reference). |
3.8 | Limited Liability Company Agreement of the General Partner, dated June 21, 2002 (filed as Exhibit 3.6 to the Partnership's Registration Statement on Form S-1 (Reg. No. 33-91706), filed July 1, 2002, and incorporated herein by reference). |
3.9 | Certificate of Formation of Martin Operating GP LLC (the “Operating General Partner”), dated June 21, 2002 (filed as Exhibit 3.7 to the Partnership's Registration Statement on Form S-1 (Reg. No. 333-91706), filed July 1, 2002, and incorporated herein by reference). |
3.10 | Limited Liability Company Agreement of the Operating General Partner, dated June 21, 2002 (filed as Exhibit 3.8 to the Partnership's Registration Statement on Form S-1 (Reg. No. 333-91706), filed July 1, 2002, and incorporated herein by reference). |
4.1 | Specimen Unit Certificate for Common Units (contained in Exhibit 3.2). |
4.2 | Specimen Unit Certificate for Subordinated Units (filed as Exhibit 4.2 to Amendment No. 4 to the Partnership's Registration Statement on Form S-1 (Reg. No. 333-91706), filed October 25, 2002, and incorporated herein by reference). |
4.3 | Indenture, dated as of March 26, 2010, by and among the Partnership, Martin Midstream Finance Corp., the Guarantors named therein and Wells Fargo Bank, National Association, as trustee (filed as Exhibit 4.1 to the Partnership's Current Report on Form 8-K (SEC File No. 000-50056), filed March 26, 2010, and incorporated herein by reference). |
4.4 | First Supplemental Indenture, to the Indenture dated as of March 26, 2010, dated as of February 11, 2013, by and among the Partnership, Martin Midstream Finance Corp., the Guarantors named therein and Wells Fargo Bank National Association, as trustee (filed as Exhibit 4.4 to the Partnership's Annual Report on Form 10-K (SEC File No. 000-50056), filed March 4, 2013, and incorporated herein by reference). |
4.5 | First Indenture (including form of 7.250% Senior Notes due 2021), dated as of February 11, 2013, by and among the Partnership, Martin Midstream Finance Corp., the Guarantors named therein and Wells Fargo Bank, National Association, as trustee (filed as Exhibit 4.1 to the Partnership's Current Report on Form 8-K (SEC File No. 000-50056), filed February 12, 2013, and incorporated herein by reference). |
4.6 | Registration Rights Agreement, dated as of February 11, 2013, by and among the Partnership, Martin Midstream Finance Corp., the Guarantors named therein and the Initial Purchasers named therein (filed as Exhibit 4.2 to the Partnership's Current Report on Form 8-K (SEC File no. 000-50056), filed February 12, 2013, and incorporated herein by reference). |
10.1 | Third Amended and Restated Credit Agreement, dated March 28, 2013, among the Partnership, the Operating Partnership, Royal Bank of Canada and the other Lenders set forth therein (filed as Exhibit 10.1 to the Partnership's Current Report on Form 8-K (SEC File No. 000-50056), filed April 3, 2013 and incorporated herein by reference). |
31.1* | Certifications of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.2* | Certifications of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
32.1* | Certification of Chief Executive Officer pursuant to 18 U.S.C., Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Pursuant to SEC Release 34-47551, this Exhibit is furnished to the SEC and shall not be deemed to be “filed.” |
32.2* | Certification of Chief Financial Officer pursuant to 18 U.S.C., Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Pursuant to SEC Release 34-47551, this Exhibit is furnished to the SEC and shall not be deemed to be “filed.” |
101 | Interactive Data: the following financial information from Martin Midstream Partners L.P.’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2013, formatted in Extensible Business Reporting Language: (1) the Consolidated Balance Sheets; (2) the Consolidated Statements of Income; (3) the Consolidated Statements of Cash Flows; (4) the Consolidated Statements of Capital; (5) the Consolidated Statements of Other Comprehensive Income; and (6) the Notes to Consolidated Financial Statements. |
Date: August 5, 2013 | |
/s/ Ruben S. Martin | |
Ruben S. Martin, President and | |
Chief Executive Officer of | |
Martin Midstream GP LLC, | |
the General Partner of Martin Midstream Partners L.P. |
Date: August 5, 2013 | |
/s/ Robert D. Bondurant | |
Robert D. Bondurant, Executive Vice President and | |
Chief Financial Officer of | |
Martin Midstream GP LLC, | |
the General Partner of Martin Midstream Partners L.P. |
/s/ Ruben S. Martin | ||
Ruben S. Martin, | ||
Chief Executive Officer | ||
of Martin Midstream GP LLC, | ||
General Partner of Martin Midstream Partners L.P. | ||
August 5, 2013 |
/s/ Robert D. Bondurant | ||
Robert D. Bondurant, | ||
Chief Financial Officer | ||
of Martin Midstream GP LLC, | ||
General Partner of Martin Midstream Partners L.P. | ||
August 5, 2013 |
Long-Term Debt and Capital Leases
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt and Capital Leases | Long-Term Debt and Capital Leases At June 30, 2013 and December 31, 2012, long-term debt consisted of the following:
* Interest rate fluctuates based on the LIBOR rate plus an applicable margin set on the date of each advance. The margin above LIBOR is set every three months. Indebtedness under the credit facility bears interest at LIBOR plus an applicable margin or the base prime rate plus an applicable margin. The applicable margin for revolving loans that are LIBOR loans ranges from 2.00% to 3.00% and the applicable margin for revolving loans that are base prime rate loans ranges from 1.00% to 2.00%. The applicable margin for existing LIBOR borrowings is 2.50%. Effective July 1, 2013, the applicable margin for existing LIBOR borrowings remained at 2.50%. Effective October 1, 2013, the applicable margin for existing LIBOR borrowings will remain at 2.50%. As of August 5, 2013, the Partnership's weighted average interest rate on its revolving loan facility is 3.16%. ** Pursuant to the Indenture under which the Senior Notes due in 2018 were issued, the Partnership has the option to redeem up to 35% of the aggregate principal amount at a redemption price of 108.875% of the principal amount, plus accrued and unpaid interest with the proceeds of certain equity offerings. On April 24, 2012, the Partnership notified the Trustee of its intention to exercise a partial redemption of the Partnership’s Senior Notes pursuant to the Indenture. On May 24, 2012, the Partnership redeemed $25,000 of the Senior Notes from various holders using proceeds of the Partnership’s January 2012 follow-on equity offering, which in the interim were used to pay down amounts outstanding under the Partnership’s revolving credit facility. Effective March 28, 2013, the Partnership increased the maximum amount of borrowings and letters of credit available under the Credit Facility from $400,000 to $600,000 and extended the term from April 2016 to March 2018. On February 11, 2013, the Partnership completed a private placement of $250,000 in aggregate principal amount of 7.250% senior unsecured notes due 2021 to qualified institutional buyers under Rule 144A. The Partnership has filed a registration statement on Form S-4 with the SEC to exchange the Notes for registered 7.250% senior unsecured notes due February 2021. The exchange offer was completed on July 31, 2013. The Partnership paid cash interest in the amount of $9,391 and $14,343 for the three months ended June 30, 2013 and 2012, respectively. The Partnership paid cash interest in the amount of $11,608 and $16,751 for the six months ended June 30, 2013 and 2012, respectively. Capitalized interest was $238 and $270 for the three months ended June 30, 2013 and 2012, respectively. Capitalized interest was $418 and $624 for the six months ended June 30, 2013 and 2012, respectively. |
Unit Based Awards Schedule of compensation costs relate to unit based plan (Details) (Selling, General and Administrative Expenses [Member], USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total unit-based compensation expense | $ 223 | $ 261 | $ 479 | $ 317 |
Employees [Member]
|
||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total unit-based compensation expense | 155 | 143 | 351 | 167 |
Non-employee Directors [Member]
|
||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total unit-based compensation expense | $ 68 | $ 118 | $ 128 | $ 150 |
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS (Unaudited) (USD $)
In Thousands, except Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|||||||||
Revenues: | ||||||||||||
Terminalling and storage | $ 27,420 | [1] | $ 21,046 | [1],[2] | $ 56,311 | [1] | $ 41,232 | [1],[2] | ||||
Marine transportation | 25,497 | [1] | 20,714 | [1],[2] | 50,477 | [1] | 41,576 | [1],[2] | ||||
Sulfur services | 3,001 | 2,925 | [2] | 6,002 | 5,851 | [2] | ||||||
Product sales: | ||||||||||||
Natural gas services | 187,200 | [1] | 164,817 | [1],[2] | 446,309 | [1] | 336,928 | [1],[2] | ||||
Sulfur services | 57,895 | [1] | 64,168 | [1],[2] | 125,279 | [1] | 135,794 | [1],[2] | ||||
Terminalling and storage | 57,175 | [1] | 60,176 | [1],[2] | 107,496 | [1] | 120,791 | [1],[2] | ||||
Total product sales | 302,270 | 289,161 | [2] | 679,084 | 593,513 | [2] | ||||||
Total revenues | 358,188 | 333,846 | [2] | 791,874 | 682,172 | [2] | ||||||
Cost of products sold: (excluding depreciation and amortization) | ||||||||||||
Natural gas services | 181,523 | [1] | 163,043 | [1],[2] | 430,301 | [1] | 330,242 | [1],[2] | ||||
Sulfur services | 44,786 | [1] | 47,350 | [1],[2] | 97,583 | [1] | 102,310 | [1],[2] | ||||
Terminalling and storage | 50,273 | 54,464 | [2] | 94,088 | 108,110 | [2] | ||||||
Total cost of products sold (excluding depreciation and amortization) | 276,582 | 264,857 | [2] | 621,972 | 540,662 | [2] | ||||||
Expenses: | ||||||||||||
Operating expenses | 43,035 | [1] | 34,443 | [1],[2] | 86,395 | [1] | 71,454 | [1],[2] | ||||
Selling, general and administrative | 6,383 | [1] | 5,639 | [1],[2] | 13,413 | [1] | 11,410 | [1],[2] | ||||
Depreciation and amortization | 12,353 | 10,070 | [2] | 24,246 | 20,023 | [2] | ||||||
Total costs and expenses | 338,353 | 315,009 | [2] | 746,026 | 643,549 | [2] | ||||||
Other operating income | 424 | 378 | [2] | 796 | 373 | [2] | ||||||
Operating income | 20,259 | 19,215 | [2] | 46,644 | 38,996 | [2] | ||||||
Other income (expense): | ||||||||||||
Equity in earnings (loss) of unconsolidated entities | 73 | 799 | [2] | (301) | 1,032 | [2] | ||||||
Interest expense | (10,940) | (8,839) | [2] | (19,998) | (16,495) | [2] | ||||||
Debt prepayment premium | 0 | (2,219) | [2] | 0 | (2,470) | [2] | ||||||
Other, net | (14) | 256 | [2] | (23) | 548 | [2] | ||||||
Total other expense | (10,881) | (10,003) | [2] | (20,322) | (17,385) | [2] | ||||||
Net income before taxes | 9,378 | 9,212 | [2] | 26,322 | 21,611 | [2] | ||||||
Income tax expense | (300) | (1,168) | [2] | (607) | (2,825) | [2] | ||||||
Income from continuing operations | 9,078 | 8,044 | [2] | 25,715 | 18,786 | [2] | ||||||
Income from discontinued operations, net of income taxes | 0 | 1,984 | [2] | 0 | 3,709 | [2] | ||||||
Net income | 9,078 | 10,028 | [2] | 25,715 | 22,495 | [2] | ||||||
Less General Partner's interest in net income | (181) | (1,544) | [2] | (514) | (3,155) | [2] | ||||||
Less pre-acquisition income allocated to Parent | 0 | (2,836) | [2] | 0 | (4,774) | [2] | ||||||
Less income allocable to unvested restricted units | (23) | 0 | [2] | (66) | 0 | [2] | ||||||
Limited partners' interest in net income | 8,874 | 5,648 | [2] | 25,135 | 14,566 | [2] | ||||||
Limited partner interest: | ||||||||||||
Continuing operations | 8,874 | 4,090 | [2] | 25,135 | 11,518 | [2] | ||||||
Discontinued operations | 0 | 1,558 | [2] | 0 | 3,048 | [2] | ||||||
Limited partners' interest in net income | 8,874 | 5,648 | [2] | 25,135 | 14,566 | [2] | ||||||
General partner interest: | ||||||||||||
Continuing operations | 181 | 1,118 | [2] | 514 | 2,494 | [2] | ||||||
Discontinued operations | 0 | 426 | [2] | 0 | 661 | [2] | ||||||
Less general partners' interest in net income | $ (181) | $ (1,544) | [2] | $ (514) | $ (3,155) | [2] | ||||||
Basic: | ||||||||||||
Continuing operations (in dollars per unit) | 0.33 | 0.18 | [2] | 0.95 | 0.51 | [2] | ||||||
Discontinued operations (in dollars per unit) | 0.00 | 0.07 | [2] | 0.00 | 0.13 | [2] | ||||||
Net Income, Basic (in dollars per unit) | 0.33 | 0.25 | [2] | 0.95 | 0.64 | [2] | ||||||
Weighted average limited partner units - basic (in units) | 26,558,028 | 23,102,534 | [2] | 26,561,218 | 22,839,470 | [2] | ||||||
Diluted: | ||||||||||||
Continuing operations (in dollars per unit) | 0.33 | 0.18 | [2] | 0.95 | 0.51 | [2] | ||||||
Discontinued operations (in dollars per unit) | 0.00 | 0.07 | [2] | 0.00 | 0.13 | [2] | ||||||
Net Income, Diluted (in dollars per unit) | 0.33 | 0.25 | [2] | 0.95 | 0.64 | [2] | ||||||
Weighted average limited partner units - diluted (in units) | 26,579,000 | 23,104,000 | [2] | 26,577,000 | 22,842,000 | [2] | ||||||
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New Accounting Pronouncements
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In February 2013, the Financial Accounting Standards Board (“FASB”) amended the provisions of Accounting Standards Codification (“ASC”) 220 related to accumulated other comprehensive income, which does not change the current requirements for reporting net income or other comprehensive income in financial statements. The standard requires entities to provide information about the amounts reclassified out of accumulated other comprehensive income by component. The entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. This amended guidance was adopted by the Partnership effective January 1, 2013. As this new guidance only requires enhanced disclosure, adoption did not impact the Partnership's financial position or results of operations. |
Commitments and Contingencies
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
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Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies From time to time, the Partnership is subject to various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Partnership. |
Partners' Capital
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Partners' Capital Notes [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Partners' Capital | Partners' Capital As of June 30, 2013, partners’ capital consisted of 26,624,276 common limited partner units, representing a 98% partnership interest and a 2% general partner interest. Martin Resource Management, through subsidiaries, owned 5,093,267 of the Partnership's common limited partnership units representing approximately 19.1% of the Partnership's outstanding common limited partnership units and a 2% general partnership interest. The partnership agreement of the Partnership (the “Partnership Agreement”) contains specific provisions for the allocation of net income and losses to each of the partners for purposes of maintaining their respective partner capital accounts. Issuance of Common Units On November 26, 2012, the Partnership completed a public offering of 3,450,000 common units at a price of $31.16 per common unit, before the payment of underwriters' discounts, commissions and offering expenses (per unit value is in dollars, not thousands). Total proceeds from the sale of the 3,450,000 common units, net of underwriters' discounts, commissions and offering expenses were $102,809. The Partnership's general partner contributed $2,194 in cash to the Partnership in conjunction with the issuance in order to maintain its 2% general partner interest in the Partnership. All of the net proceeds were used to reduce outstanding indebtedness of the Partnership. On January 25, 2012, the Partnership completed a public offering of 2,645,000 common units at a price of $36.15 per common unit, before the payment of underwriters’ discounts, commissions and offering expenses (per unit value is in dollars, not thousands). Total proceeds from the sale of the 2,645,000 common units, net of underwriters’ discounts, commissions and offering expenses were $91,361. The Partnership’s general partner contributed $1,951 in cash to the Partnership in conjunction with the issuance in order to maintain its 2% general partner interest in the Partnership. All of the net proceeds were used to reduce outstanding indebtedness of the Partnership. Incentive Distribution Rights The Partnership’s general partner, Martin Midstream GP LLC, holds a 2% general partner interest and certain incentive distribution rights (“IDRs”) in the Partnership. IDRs are a separate class of non-voting limited partner interest that may be transferred or sold by the general partner under the terms of the Partnership Agreement, and represent the right to receive an increasing percentage of cash distributions after the minimum quarterly distribution and any cumulative arrearages on common units once certain target distribution levels have been achieved. The Partnership is required to distribute all of its available cash from operating surplus, as defined in the Partnership Agreement. On October 2, 2012, the Partnership Agreement was amended to provide that the General Partner shall forego the next $18,000 in incentive distributions that it would otherwise be entitled to receive. No incentive distributions were allocated to the general partner from July 1, 2012 (which would have been payable to the general partner on November 14, 2012 for the third quarter of 2012 distribution) through June 30, 2013. As of June 30, 2013, the amount of incentive distributions the general partner has foregone is $5,397, resulting in an amount remaining of $12,603. The target distribution levels entitle the general partner to receive 2% of quarterly cash distributions up to $0.55 per unit, 15% of quarterly cash distributions in excess of $0.55 per unit until all unitholders have received $0.625 per unit, 25% of quarterly cash distributions in excess of $0.625 per unit until all unitholders have received $0.75 per unit and 50% of quarterly cash distributions in excess of $0.75 per unit. For the three months ended June 30, 2013 and 2012, the general partner received $0 and $1,429, respectively, in incentive distributions. For the six months ended June 30, 2013 and 2012, the general partner received $0 and $2,857, respectively, in incentive distributions. Distributions of Available Cash The Partnership distributes all of its available cash (as defined in the Partnership Agreement) within 45 days after the end of each quarter to unitholders of record and to the general partner. Available cash is generally defined as all cash and cash equivalents of the Partnership on hand at the end of each quarter less the amount of cash reserves its general partner determines in its reasonable discretion is necessary or appropriate to: (i) provide for the proper conduct of the Partnership’s business; (ii) comply with applicable law, any debt instruments or other agreements; or (iii) provide funds for distributions to unitholders and the general partner for any one or more of the next four quarters, plus all cash on the date of determination of available cash for the quarter resulting from working capital borrowings made after the end of the quarter. Net Income per Unit The Partnership follows the provisions of the FASB ASC 260-10 related to earnings per share, which addresses the application of the two-class method in determining income per unit for master limited partnerships having multiple classes of securities that may participate in partnership distributions accounted for as equity distributions. Undistributed earnings are allocated to the general partner and limited partners utilizing the contractual terms of the Partnership Agreement. Distributions to the general partner pursuant to the IDRs are limited to available cash that will be distributed as defined in the Partnership Agreement. Accordingly, the Partnership does not allocate undistributed earnings to the general partner for the IDRs because the general partner's share of available cash is the maximum amount that the general partner would be contractually entitled to receive if all earnings for the period were distributed. When current period distributions are in excess of earnings, the excess distributions for the period are to be allocated to the general partner and limited partners based on their respective sharing of losses specified in the Partnership Agreement. Additionally, as required under FASB ASC 260-10-45-61A, unvested share-based payments that entitle employees to receive non-forfeitable distributions are considered participating securities, as defined in FASB ASC 260-10-20, for earnings per unit calculations. For purposes of computing diluted net income per unit, the Partnership uses the more dilutive of the two-class and if-converted methods. Under the if-converted method, the weighted-average number of subordinated units outstanding for the period is added to the weighted-average number of common units outstanding for purposes of computing basic net income per unit and the resulting amount is compared to the diluted net income per unit computed using the two-class method. The following is a reconciliation of net income from continuing operations and net income from discontinued operations allocated to the general partner and limited partners for purposes of calculating net income attributable to limited partners per unit:
The Partnership allocates the general partner's share of earnings between continuing and discontinued operations as a proportion of net income from continuing and discontinued operations to total net income. The allocation is done at each period end on an annual basis, resulting in each quarter representing the difference between year to date of the current quarter and year to date as of the previous quarter. The weighted average units outstanding for basic net income per unit were 26,558,028 and 26,561,218 for the three and six months ended June 30, 2013, respectively, and 23,102,534 and 22,839,470 for the three and six months ended June 30, 2012, respectively. For diluted net income per unit, the weighted average units outstanding were increased by 21,284 and 15,496 for the three and six months ended June 30, 2013, respectively, and 1,562 and 2,688 for the three and six months ended June 30, 2012, respectively, due to the dilutive effect of restricted units granted under the Partnership’s long-term incentive plan. |
Partners' Capital (Details) (USD $)
In Thousands, except Share data, unless otherwise specified |
0 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 26, 2012
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Jan. 25, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
Martin Resource Management [Member]
|
Jun. 30, 2013
Martin Midstream GP LLC [Member]
|
Jun. 30, 2012
Martin Midstream GP LLC [Member]
|
Jun. 30, 2013
Martin Midstream GP LLC [Member]
|
Jun. 30, 2012
Martin Midstream GP LLC [Member]
|
Oct. 02, 2012
Martin Midstream GP LLC [Member]
|
Jun. 30, 2013
Target Level 1 [Member]
Martin Midstream GP LLC [Member]
|
Jun. 30, 2013
Target Level 2 [Member]
Martin Midstream GP LLC [Member]
|
Jun. 30, 2013
Target Level 3 [Member]
Martin Midstream GP LLC [Member]
|
Jun. 30, 2013
Target Level 4 [Member]
Martin Midstream GP LLC [Member]
|
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Limited Partners' Capital Account [Line Items] | |||||||||||||||||
Common limited partner units | 26,624,276 | 5,093,267 | |||||||||||||||
Ownership percentage | 98.00% | 19.10% | |||||||||||||||
General partner interest percentage | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | ||||||||||||
Units issued in public offering (in shares) | 3,450,000 | 2,645,000 | |||||||||||||||
Sale of stock (in dollars per share) | $ 31.16 | $ 36.15 | |||||||||||||||
Proceeds from the public offering | $ 102,809 | $ 91,361 | |||||||||||||||
General partner contribution to maintain GP interest | 2,194 | 1,951 | 37 | 1,951 | [1] | ||||||||||||
Target cash distribution, percent | 2.00% | 15.00% | 25.00% | 50.00% | |||||||||||||
Target cash distribution (in dollars per share) | $ 0.55 | $ 0.625 | $ 0.75 | ||||||||||||||
Distributions payable on behalf of IDRs | 0 | 1,429 | 0 | 2,857 | |||||||||||||
Incentive distribution foregone | 5,397 | 5,397 | 18,000 | ||||||||||||||
Incentive distribution foregone remaining remaining | $ 12,603 | $ 12,603 | |||||||||||||||
Distribution period | 45 days | ||||||||||||||||
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Subsequent Events (Details) (Subsequent Event [Member], USD $)
|
0 Months Ended |
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Jul. 25, 2013
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Subsequent Event [Member]
|
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Subsequent Event [Line Items] | |
Dividends declared | $ 0.78 |
Estimated annualized dividends | $ 3.12 |
General (Details)
|
6 Months Ended | ||
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Jun. 30, 2013
segment
|
Oct. 02, 2012
Redbird Gas Storage [Member]
Common Class A [Member]
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Oct. 02, 2012
Redbird Gas Storage [Member]
Common Class B [Member]
|
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of primary business lines | 4 | ||
Ownership percentage | 50.00% | 10.74% | 100.00% |
Discontinued operations and divestitures (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of disposal groups including discontinued operations income statement and balance sheet | The Prism Assets’ operating results, which are included within income from discontinued operations, were as follows:
1 Total revenues from third parties excludes intercompany revenues of $0, $9,713, $0, and $23,146 for the three months ended June 30, 2013 and 2012, and six months ended June 30, 2013 and 2012, respectively. |
Acquisitions Acquisitions (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Talen's Marine and Fuel, LLC [Member]
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Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Purchase Price Allocation | The remaining net assets retained by the Partnership were recorded in the Terminalling and Storage segment at fair value of $43,100 in the following preliminary purchase price allocation:
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Lubricant Packaging Assets [Member]
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Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Purchase Price Allocation | The acquisition of the Blending and Packaging assets was recorded at the historical carrying value of the assets at the acquisition date, which were as follows:
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NL Grease, LLC [Member]
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Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Purchase Price Allocation | The assets acquired by the Partnership were recorded in the Terminalling and Storage segment at fair value of $12,203 in the following preliminary purchase price allocation:
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Related Party Transactions (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The impact of Related Party Transactions | The impact of related party revenues from sales of products and services is reflected in the consolidated and condensed financial statements as follows:
The impact of related party cost of products sold is reflected in the consolidated and condensed financial statements as follows:
The impact of related party operating expenses is reflected in the consolidated and condensed financial statements as follows:
The impact of related party selling, general and administrative expenses is reflected in the consolidated and condensed financial statements as follows:
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Fair Value Measurements (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following items are measured at fair value on a recurring basis subject to the disclosure requirements of ASC 820 at June 30, 2013 and December 31, 2012:
|
Investments in Unconsolidated Entities and Joint Ventures (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
Dec. 31, 2012
|
Jun. 30, 2013
Cardinal Gas Storage Partners LLC [Member]
|
Jun. 30, 2012
Cardinal Gas Storage Partners LLC [Member]
|
Jun. 30, 2013
Cardinal Gas Storage Partners LLC [Member]
|
Jun. 30, 2012
Cardinal Gas Storage Partners LLC [Member]
|
Dec. 31, 2012
Cardinal Gas Storage Partners LLC [Member]
|
May 01, 2008
Cardinal Gas Storage Partners LLC [Member]
|
Jun. 30, 2013
Waskom [Member]
|
Jun. 30, 2012
Waskom [Member]
|
Jun. 30, 2013
Waskom [Member]
|
Jun. 30, 2012
Waskom [Member]
|
Dec. 31, 2012
Waskom [Member]
|
Jun. 30, 2013
Panther Interstate Pipeline Energy LLC [Member]
|
Jun. 30, 2012
Panther Interstate Pipeline Energy LLC [Member]
|
Jun. 30, 2013
Panther Interstate Pipeline Energy LLC [Member]
|
Jun. 30, 2012
Panther Interstate Pipeline Energy LLC [Member]
|
Jun. 30, 2013
Matagorda Offshore Gathering System [Member]
|
Jun. 30, 2012
Matagorda Offshore Gathering System [Member]
|
Jun. 30, 2013
Matagorda Offshore Gathering System [Member]
|
Jun. 30, 2012
Matagorda Offshore Gathering System [Member]
|
May 27, 2011
Redbird [Member]
|
Jun. 30, 2013
Redbird [Member]
|
Jun. 30, 2012
Redbird [Member]
|
Jun. 30, 2013
Redbird [Member]
|
Jun. 30, 2012
Redbird [Member]
|
Dec. 31, 2012
Redbird [Member]
|
May 27, 2011
Redbird [Member]
Common Class A [Member]
|
Jun. 30, 2013
Redbird [Member]
Common Class B [Member]
|
May 27, 2011
Redbird [Member]
Common Class B [Member]
|
Mar. 31, 2013
Martin Energy Trading LLC [Member]
|
Jun. 30, 2013
Martin Energy Trading LLC [Member]
|
Jun. 30, 2012
Martin Energy Trading LLC [Member]
|
Jun. 30, 2013
Martin Energy Trading LLC [Member]
|
Jun. 30, 2012
Martin Energy Trading LLC [Member]
|
Dec. 31, 2012
Martin Energy Trading LLC [Member]
|
Jun. 30, 2013
Caliber [Member]
|
Jun. 30, 2012
Caliber [Member]
|
Jun. 30, 2013
Caliber [Member]
|
Jun. 30, 2012
Caliber [Member]
|
Dec. 31, 2012
Caliber [Member]
|
Jun. 30, 2013
Pecos Valley Producer Services LLC [Member]
|
Jun. 30, 2012
Pecos Valley Producer Services LLC [Member]
|
Jun. 30, 2013
Pecos Valley Producer Services LLC [Member]
|
Jun. 30, 2012
Pecos Valley Producer Services LLC [Member]
|
Jun. 30, 2013
Waskom Matagorda and PIPE [Member]
|
|||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unconsolidated interest ownership | 50.00% | 50.00% | 50.00% | 100.00% | 42.19% | 100.00% | 100.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Difference Between Carrying Amount and Underlying Equity, Property and Equipment | $ 1,250 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Useful Life | 40 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization | 8 | 16 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of components of investment in unconsolidated entities and components of equity in earnings of unconsolidated entities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in unconsolidated entities | 183,229 | 183,229 | 154,309 | 167,392 | 167,392 | 153,749 | 15,594 | 15,594 | 0 | 243 | 243 | 560 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Investment in unconsolidated entities | 183,229 | 183,229 | 154,309 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity in earnings of discontinued operations | 0 | 1,769 | 0 | 4,234 | 0 | [1] | 1,559 | [1] | 0 | [1] | 3,884 | [1] | 0 | [1] | (21) | [1] | 0 | [1] | (69) | [1] | 0 | [1] | 231 | [1] | 0 | [1] | 419 | [1] | |||||||||||||||||||||||||||||||||||||||
Equity in earnings of unconsolidated entities | 73 | 799 | [2] | (301) | 1,032 | [2] | (362) | 832 | (578) | 1,065 | 594 | 0 | 594 | 0 | (159) | (21) | (317) | (21) | 0 | (12) | 0 | (12) | |||||||||||||||||||||||||||||||||||||||||||||
Total equity in earnings of unconsolidated entities | 73 | 2,568 | (301) | 5,266 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Select financial information for significant unconsolidated equity-method investees [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Assets | 768,193 | 768,193 | 694,767 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Partner's Capital | 475,541 | 475,541 | 457,297 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | 10,708 | 7,898 | 18,795 | 17,067 | 27,207 | 58,491 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income | (392) | (2,343) | 59 | (1,733) | 3,394 | 8,318 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Partnership's interest in cash of the unconsolidated equity-method investees | 2,996 | 2,996 | 1,265 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from sale of equity method investment | $ 59,319 | $ 15,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Subsequent Events
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Quarterly Distribution. On July 25, 2013, the Partnership declared a quarterly cash distribution of $0.78 per common unit for the second quarter of 2013, or $3.12 per common unit on an annualized basis, which will be paid on August 14, 2013 to unitholders of record as of August 7, 2013. |
CONSOLIDATED AND CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|||||
Statement of Other Comprehensive Income [Abstract] | ||||||||
Net income | $ 9,078 | $ 10,028 | [1] | $ 25,715 | $ 22,495 | [1] | ||
Other comprehensive income adjustments: | ||||||||
Changes in fair values of commodity cash flow hedges | 0 | 0 | [1] | 0 | 126 | [1] | ||
Commodity cash flow hedging losses reclassified to earnings | 0 | (499) | [1] | 0 | (689) | [1] | ||
Other comprehensive income | 0 | (499) | [1] | 0 | (563) | [1] | ||
Comprehensive income | $ 9,078 | $ 9,529 | [1] | $ 25,715 | $ 21,932 | [1] | ||
|
CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
||||
Cash flows from operating activities: | |||||
Net income | $ 25,715 | $ 22,495 | [1] | ||
Less: Income from discontinued operations | 0 | (3,709) | [1] | ||
Net income from continuing operations | 25,715 | 18,786 | [1] | ||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization | 24,246 | 20,023 | [1] | ||
Amortization of deferred debt issuance costs | 2,075 | 1,931 | [1] | ||
Amortization of debt discount | 153 | 427 | [1] | ||
Deferred taxes | 0 | 267 | [1] | ||
(Gain) loss on sale of property, plant and equipment | (796) | 3 | [1] | ||
Equity in (earnings) loss of unconsolidated entities | 301 | (1,032) | [1] | ||
Unit-based compensation | 479 | 118 | [1] | ||
Other | 6 | 0 | [1] | ||
Change in current assets and liabilities, excluding effects of acquisitions and dispositions: | |||||
Accounts and other receivables | 66,658 | 21,253 | [1] | ||
Product exchange receivables | 1,694 | 9,517 | [1] | ||
Inventories | 4,946 | (13,866) | [1] | ||
Due from affiliates | (17,657) | (16,729) | [1] | ||
Other current assets | (3,530) | 868 | [1] | ||
Trade and other accounts payable | (29,256) | (11,959) | [1] | ||
Product exchange payables | (1,211) | (21,534) | [1] | ||
Due to affiliates | 89 | 11,967 | [1] | ||
Income taxes payable | 53 | 22 | [1] | ||
Other accrued liabilities | 1,115 | (1,282) | [1] | ||
Accrued interest payable | 6,579 | (540) | [1] | ||
Change in other non-current assets and liabilities | (563) | (574) | [1] | ||
Net cash provided by continuing operating activities | 81,096 | 17,666 | [1] | ||
Net cash provided by (used in) discontinued operating activities | (8,678) | 5,210 | [1] | ||
Net cash provided by operating activities | 72,418 | 22,876 | [1] | ||
Cash flows from investing activities: | |||||
Payments for property, plant and equipment | (28,621) | (51,373) | [1] | ||
Acquisitions | (63,004) | 0 | [1] | ||
Payments for plant turnaround costs | 0 | (2,403) | [1] | ||
Proceeds from sale of property, plant and equipment | 4,719 | 23 | [1] | ||
Milestone distributions from ECP | 0 | 2,208 | [1] | ||
Return of investments from unconsolidated entities | 1,357 | 4,297 | [1] | ||
Contributions to unconsolidated entities | (30,578) | (18,123) | [1] | ||
Net cash used in continuing investing activities | (116,127) | (65,371) | [1] | ||
Net cash used in discontinued investing activities | 0 | (2,003) | [1] | ||
Net cash used in investing activities | (116,127) | (67,374) | [1] | ||
Cash flows from financing activities: | |||||
Payments of long-term debt | (439,000) | (217,000) | [1] | ||
Payments of notes payable and capital lease obligations | (160) | (6,453) | [1] | ||
Proceeds from long-term debt | 529,000 | 216,000 | [1] | ||
Net proceeds from follow on offering | 0 | 91,361 | [1] | ||
General partner contribution | 37 | 1,951 | [1] | ||
Purchase of treasury units | 250 | 221 | [1] | ||
Decrease in affiliate funding of investments in unconsolidated entities | 0 | (2,208) | [1] | ||
Payment of debt issuance costs | (9,011) | (204) | [1] | ||
Cash distributions paid | (42,052) | (38,888) | [1] | ||
Net cash provided by financing activities | 38,564 | 44,338 | [1] | ||
Net decrease in cash | (5,145) | (160) | [1] | ||
Cash at beginning of period | 5,162 | 266 | [1] | ||
Cash at end of period | $ 17 | $ 106 | [1] | ||
|
Acquisitions
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
|
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | Acquisitions NL Grease, LLC On June 13, 2013, the Partnership acquired certain assets of NL Grease, LLC (“NLG”) for $12,203. NLG is a Kansas City, Missouri based grease manufacturer that specializes in private-label packaging of commercial and industrial greases. The transaction was accounted for under the acquisition method of accounting in accordance with ASC 805 relating to business combinations. This transaction was funded by borrowings under the Partnership's revolving credit facility. The assets acquired by the Partnership were recorded in the Terminalling and Storage segment at fair value of $12,203 in the following preliminary purchase price allocation:
The purchase price allocation resulted in the recognition of $5,113 in definite-lived intangible assets with no residual value, including $2,418 of technology, $2,218 attributable to a customer list, and $477 attributable to a non-compete agreement. The amounts assigned to technology, the customer list, and the non-compete agreement are amortized over the estimated useful life of ten years, three years, and five years, respectively. The weighted average life over which these acquired intangibles will be amortized is approximatelysix years. The Partnership's results of operations included revenues of $521 and a net loss of $156 for the three and six months ended June 30, 2013 related to the NLG acquisition. The Partnership has not obtained all of the information necessary to finalize the purchase price allocation. The final purchase price allocation is expected to be completed during the third quarter of 2013. NGL Marine Equipment Purchase On February 28, 2013, the Partnership purchased from affiliates of Florida Marine Transporters, Inc. six liquefied petroleum gas pressure barges and two commercial push boats for approximately $50,801, of which the commercial push boats totaling $8,201 were allocated to property, plant and equipment in the Partnership's Marine Transportation segment and the six pressure barges totaling $42,600 were allocated to property, plant and equipment in the Partnership's Natural Gas Services segment. The purchase was funded with borrowings under the Partnership's revolving credit facility. Talen's Marine & Fuel LLC On December 31, 2012, the Partnership acquired all of the outstanding membership interests in Talen's Marine & Fuel LLC (“Talen's”) from QEP Marine Fuel Investment, LLC and QEP Marine Fuel Holdings, Inc. (collectively referred to as “Quintana Energy Partners”) for $103,368, subject to certain post-closing adjustments, including the assumption of a note payable in the amount of $2,971. The transaction was accounted for under the acquisition method of accounting in accordance with ASC 805 relating to business combinations. Additionally, as required by ASC 805, the Partnership expensed acquisition related costs, of which $58 were recorded in selling, general and administrative expenses for the six months ended June 30, 2013. Through this acquisition, the Partnership acquired certain terminalling facilities and other terminalling related assets located along the Texas and Louisiana gulf coast. The purchase was funded by borrowings under the Partnership's revolving credit facility. Simultaneous with the acquisition, the Partnership sold certain working capital-related assets and a customer relationship intangible asset to Martin Energy Services LLC (“MES”), a wholly-owned subsidiary of Martin Resource Management for $56,000. Due to the Talen's acquisition, MES entered into various service agreements with Talen's pursuant to which the Partnership provides certain terminalling and marine services to MES. The excess carrying value of the assets over the purchase price paid by Martin Resource Management at the sales date was $4,268 and was recorded as an adjustment to partners' capital. The remaining net assets retained by the Partnership were recorded in the Terminalling and Storage segment at fair value of $43,100 in the following preliminary purchase price allocation:
Goodwill recognized from the acquisition primarily relates to the expected contributions of the entity to the overall corporate strategy in addition to synergies and acquired workforce, which are not separable from goodwill. The Partnership's results of operations included revenues of $1,232 and net income of $39 for the three months ended June 30, 2013 and revenues of $2,672 and net income of $557 for the six months ended June 30, 2013 related to the Talen's acquisition. The Partnership has not obtained all of the information necessary to finalize the purchase price allocation. The final purchase price allocation is expected to be completed during 2013. Lubricant Blending and Packaging Assets On October 2, 2012, the Partnership purchased the Blending and Packaging Assets from Cross. The consideration consisted of $121,767 in cash at closing, plus a final net working capital adjustment of $907 paid in October of 2012. The purchase was funded by borrowings under the Partnership's revolving credit facility. This acquisition is considered a transfer of net assets between entities under common control. The acquisition of the Blending and Packaging assets was recorded at the historical carrying value of the assets at the acquisition date, which were as follows:
The excess purchase price over the historical carrying value of the assets at the acquisition date was $60,308 and was recorded as an adjustment to partners' capital. Redbird Class A Interests On October 2, 2012, the Partnership acquired from MUS all of the remaining Class A interests in Redbird for $150,000 in cash. The Partnership began making Class A investments in Redbird during the fourth quarter of 2011. Prior to the transaction, the Partnership owned a 10.74% Class A interest and a 100% Class B interest in Redbird. The purchase was funded by borrowings under the Partnership's revolving credit facility. This acquisition is considered a transfer of net assets between entities under common control. The acquisition of these interests was recorded at the historical carrying value of the interests at the acquisition date. The Partnership recorded an investment in unconsolidated entities of $68,233 and the excess of the purchase price over the carrying value of the Class A interests of $81,767 was recorded as an adjustment to partners' capital. |
General
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Accounting Policies [Abstract] | |
General | General Martin Midstream Partners L.P. (the “Partnership”) is a publicly traded limited partnership with a diverse set of operations focused primarily in the United States Gulf Coast region. Its four primary business lines include: terminalling and storage services for petroleum products and by-products including the refining, blending, and packaging of finished lubricants; natural gas services, including liquids distribution services and natural gas storage; sulfur and sulfur-based products processing, manufacturing, marketing and distribution; and marine transportation services for petroleum products and by-products. The Partnership’s unaudited consolidated and condensed financial statements have been prepared in accordance with the requirements of Form 10-Q and United States Generally Accepted Accounting Principles (“U.S. GAAP”) for interim financial reporting. Accordingly, these financial statements have been condensed and do not include all of the information and footnotes required by U.S. GAAP for annual audited financial statements of the type contained in the Partnership’s annual reports on Form 10-K. In the opinion of the management of the Partnership’s general partner, all adjustments and elimination of significant intercompany balances necessary for a fair presentation of the Partnership’s financial position, results of operations, and cash flows for the periods shown have been made. All such adjustments are of a normal recurring nature. Results for such interim periods are not necessarily indicative of the results of operations for the full year. These financial statements should be read in conjunction with the Partnership’s audited consolidated financial statements and notes thereto included in the Partnership’s annual report on Form 10-K for the year ended December 31, 2012, filed with the Securities and Exchange Commission (the “SEC”) on March 4, 2013, as amended by Amendment No. 1 on Form 10-K/A for the year ended December 31, 2012 filed on March 28, 2013. Management has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these consolidated financial statements in conformity with U.S. GAAP. Actual results could differ from those estimates. As discussed in Note 4, on July 31, 2012, the Partnership completed the sale of its East Texas and Northwest Louisiana natural gas gathering and processing assets owned by Prism Gas Systems I, L.P. (“Prism Gas”), a wholly-owned subsidiary of the Partnership. These assets, along with additional gathering and processing assets discussed in Note 4, are collectively referred to as the “Prism Assets.” The Partnership has retrospectively adjusted its prior period consolidated and condensed financial statements to comparably classify the amounts related to the operations and cash flows of the Prism Assets as discontinued operations. On October 2, 2012, the Partnership, which owned 10.74% of the Class A interests and 100% of the Class B interests, acquired all of the remaining Class A interests in Redbird Gas Storage LLC (“Redbird”) from Martin Underground Storage, Inc., (“MUS”) a subsidiary of Martin Resource Management Corporation (“Martin Resource Management” or “Parent”). In 2011, the Partnership and Martin Resource Management formed Redbird, a natural gas storage joint venture to invest in Cardinal Gas Storage Partners LLC (“Cardinal”). Cardinal is a joint venture between Redbird and Energy Capital Partners (“ECP”) that is focused on the development, construction, operation and management of natural gas storage facilities across northern Louisiana and Mississippi. On October 2, 2012, the Partnership acquired from Cross Oil Refining and Marketing, Inc. (“Cross”), a wholly-owned subsidiary of Martin Resource Management, certain specialty lubricant product blending and packaging assets (“Blending and Packaging Assets”). The acquisitions of the Redbird Class A interests and the Blending and Packaging Assets were considered a transfer of net assets between entities under common control. As a result, the acquisitions of the Redbird Class A interests and the Blending and Packaging Assets are recorded at amounts based on the historical carrying value of these assets at October 2, 2012, and the Partnership is required to update its historical financial statements to include the activities of the Redbird Class A interests and the Blending and Packaging Assets as of the date of common control. The Partnership’s accompanying historical financial statements have been retrospectively updated to reflect the effects on financial position, cash flows and results of operations attributable to the activities of the Redbird Class A interests and the Blending and Packaging Assets as if the Partnership owned these assets for the periods presented. Net income attributable to the Redbird Class A interests and the activities of the Blending and Packaging Assets for periods prior to the Partnership’s acquisition of the assets is not allocated to the general and limited partners for purposes of calculating net income per limited partner unit. See Note 10. |
Discontinued operations and divestitures (Details) (USD $)
In Thousands, unless otherwise specified |
0 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 18, 2012
|
Jul. 31, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
Mar. 31, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||||||||
Proceeds from Divestiture of Businesses | $ 1,530 | $ 273,269 | |||||||||||||
Unconsolidated interest ownership | 50.00% | 50.00% | |||||||||||||
Discontinued Operation, Intercompany Amounts with Discontinued Operation before Disposal Transaction, Revenue | 0 | 9,713 | 0 | 23,146 | |||||||||||
Operations [Abstract] | |||||||||||||||
Total costs and expenses, excluding depreciation and amortization | (338,353) | (315,009) | [1] | (746,026) | (643,549) | [1] | |||||||||
Depreciation and amortization | (12,353) | (10,070) | [1] | (24,246) | (20,023) | [1] | |||||||||
Equity in earnings of Waskom, Matagorda, and PIPE | 0 | 1,769 | 0 | 4,234 | |||||||||||
Income from discontinued operations, net of income taxes | 0 | 1,984 | [1] | 0 | 3,709 | [1] | |||||||||
Waskom [Member]
|
|||||||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||||||||
Unconsolidated interest ownership | 50.00% | 50.00% | |||||||||||||
Segment, Discontinued Operations [Member]
|
|||||||||||||||
Operations [Abstract] | |||||||||||||||
Total revenues from third parties | 0 | [2] | 28,672 | [2] | 0 | [2] | 57,574 | [2] | |||||||
Total costs and expenses, excluding depreciation and amortization | 0 | (27,677) | 0 | (56,101) | |||||||||||
Depreciation and amortization | 0 | (925) | 0 | (2,320) | |||||||||||
Other operating income | 0 | 0 | 0 | 10 | |||||||||||
Equity in earnings of Waskom, Matagorda, and PIPE | 0 | 1,769 | 0 | 4,234 | |||||||||||
Income from discontinued operations before income taxes | 0 | 1,839 | 0 | 3,397 | |||||||||||
Income tax benefit | 0 | (145) | 0 | (312) | |||||||||||
Income from discontinued operations, net of income taxes | $ 0 | $ 1,984 | $ 0 | $ 3,709 | |||||||||||
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Inventories (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of inventory | Components of inventories at June 30, 2013 and December 31, 2012 were as follows:
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Long-Term Debt and Capital Leases (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of long-term debt | At June 30, 2013 and December 31, 2012, long-term debt consisted of the following:
* Interest rate fluctuates based on the LIBOR rate plus an applicable margin set on the date of each advance. The margin above LIBOR is set every three months. Indebtedness under the credit facility bears interest at LIBOR plus an applicable margin or the base prime rate plus an applicable margin. The applicable margin for revolving loans that are LIBOR loans ranges from 2.00% to 3.00% and the applicable margin for revolving loans that are base prime rate loans ranges from 1.00% to 2.00%. The applicable margin for existing LIBOR borrowings is 2.50%. Effective July 1, 2013, the applicable margin for existing LIBOR borrowings remained at 2.50%. Effective October 1, 2013, the applicable margin for existing LIBOR borrowings will remain at 2.50%. As of August 5, 2013, the Partnership's weighted average interest rate on its revolving loan facility is 3.16%. ** Pursuant to the Indenture under which the Senior Notes due in 2018 were issued, the Partnership has the option to redeem up to 35% of the aggregate principal amount at a redemption price of 108.875% of the principal amount, plus accrued and unpaid interest with the proceeds of certain equity offerings. On April 24, 2012, the Partnership notified the Trustee of its intention to exercise a partial redemption of the Partnership’s Senior Notes pursuant to the Indenture. On May 24, 2012, the Partnership redeemed $25,000 of the Senior Notes from various holders using proceeds of the Partnership’s January 2012 follow-on equity offering, which in the interim were used to pay down amounts outstanding under the Partnership’s revolving credit facility. |
Unit Based Awards Unit Based Awards (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of compensation costs related to unit based plan | Amounts recognized in selling, general, and administrative expense in the consolidated and condensed financial statements with respect to these plans are as follows:
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Summary of restricted unit activity | A summary of the restricted unit activity for the six months ended June 30, 2013 is provided below:
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Summary of aggregate intrinsic value and fair value of units vested | A summary of the restricted units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) during the three and six months ended June 30, 2013 and 2012 are provided below:
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Unit Based Awards Summary of aggregate intrinsic value and fair value of units vested (Details) (Restricted Units [Member], USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2013
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Jun. 30, 2012
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Restricted Units [Member]
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate intrinsic value of units vested | $ 0 | $ 11 | $ 153 | $ 214 |
Fair value of units vested | $ 0 | $ 0 | $ 157 | $ 214 |