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 |
Emerging growth company o |
Yes o | No x |
Page | |
Item 1. | Financial Statements |
June 30, 2017 | December 31, 2016 | ||||||
(Unaudited) | (Audited) | ||||||
Assets | |||||||
Cash | $ | $ | |||||
Accounts and other receivables, less allowance for doubtful accounts of $238 and $372, respectively | |||||||
Product exchange receivables | |||||||
Inventories | |||||||
Due from affiliates | |||||||
Fair value of derivatives | |||||||
Other current assets | |||||||
Assets held for sale | |||||||
Total current assets | |||||||
Property, plant and equipment, at cost | |||||||
Accumulated depreciation | ( | ) | ( | ) | |||
Property, plant and equipment, net | |||||||
Goodwill | |||||||
Investment in WTLPG | |||||||
Note receivable - affiliate | |||||||
Other assets, net | |||||||
Total assets | $ | $ | |||||
Liabilities and Partners’ Capital | |||||||
Trade and other accounts payable | $ | $ | |||||
Product exchange payables | |||||||
Due to affiliates | |||||||
Income taxes payable | |||||||
Fair value of derivatives | |||||||
Other accrued liabilities | |||||||
Total current liabilities | |||||||
Long-term debt, net | |||||||
Other long-term obligations | |||||||
Total liabilities | |||||||
Commitments and contingencies (Note 17) | |||||||
Partners’ capital | |||||||
Total partners’ capital | |||||||
Total liabilities and partners' capital | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues: | |||||||||||||||
Terminalling and storage * | $ | $ | $ | $ | |||||||||||
Marine transportation * | |||||||||||||||
Natural gas services* | |||||||||||||||
Sulfur services | |||||||||||||||
Product sales: * | |||||||||||||||
Natural gas services | |||||||||||||||
Sulfur services | |||||||||||||||
Terminalling and storage | |||||||||||||||
Total revenues | |||||||||||||||
Costs and expenses: | |||||||||||||||
Cost of products sold: (excluding depreciation and amortization) | |||||||||||||||
Natural gas services * | |||||||||||||||
Sulfur services * | |||||||||||||||
Terminalling and storage * | |||||||||||||||
Expenses: | |||||||||||||||
Operating expenses * | |||||||||||||||
Selling, general and administrative * | |||||||||||||||
Loss on impairment of goodwill | |||||||||||||||
Depreciation and amortization | |||||||||||||||
Total costs and expenses | |||||||||||||||
Other operating income (loss) | ( | ) | ( | ) | ( | ) | |||||||||
Operating income | |||||||||||||||
Other income (expense): | |||||||||||||||
Equity in earnings of WTLPG | |||||||||||||||
Interest expense, net | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Other, net | |||||||||||||||
Total other expense | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Net income (loss) before taxes | ( | ) | |||||||||||||
Income tax expense | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Net income (loss) | ( | ) | |||||||||||||
Less general partner's interest in net income | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Less (income) loss allocable to unvested restricted units | ( | ) | ( | ) | ( | ) | |||||||||
Limited partners' interest in net income (loss) | $ | $ | ( | ) | $ | $ | |||||||||
Net income (loss) per unit attributable to limited partners - basic | $ | $ | ( | ) | $ | $ | |||||||||
Net income (loss) per unit attributable to limited partners - diluted | $ | $ | ( | ) | $ | $ | |||||||||
Weighted average limited partner units - basic | |||||||||||||||
Weighted average limited partner units - diluted |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues:* | |||||||||||||||
Terminalling and storage | $ | $ | $ | $ | |||||||||||
Marine transportation | |||||||||||||||
Natural gas services | |||||||||||||||
Product Sales | |||||||||||||||
Costs and expenses:* | |||||||||||||||
Cost of products sold: (excluding depreciation and amortization) | |||||||||||||||
Natural gas services | |||||||||||||||
Sulfur services | |||||||||||||||
Terminalling and storage | |||||||||||||||
Expenses: | |||||||||||||||
Operating expenses | |||||||||||||||
Selling, general and administrative |
Partners’ Capital | ||||||||||||||
Common Limited | General Partner Amount | |||||||||||||
Units | Amount | Total | ||||||||||||
Balances - January 1, 2016 | $ | $ | $ | |||||||||||
Net income | — | |||||||||||||
Issuance of restricted units | — | — | — | |||||||||||
Forfeiture of restricted units | ( | ) | — | — | — | |||||||||
Cash distributions | — | ( | ) | ( | ) | ( | ) | |||||||
Reimbursement of excess purchase price over carrying value of acquired assets | — | — | ||||||||||||
Unit-based compensation | — | — | ||||||||||||
Purchase of treasury units | ( | ) | ( | ) | — | ( | ) | |||||||
Balances - June 30, 2016 | $ | $ | $ | |||||||||||
Balances - January 1, 2017 | $ | $ | $ | |||||||||||
Net income | — | |||||||||||||
Issuance of common units, net of issuance related costs | — | |||||||||||||
Issuance of restricted units | — | — | — | |||||||||||
Forfeiture of restricted units | ( | ) | — | — | — | |||||||||
General partner contribution | — | — | ||||||||||||
Cash distributions | — | ( | ) | ( | ) | ( | ) | |||||||
Unit-based compensation | — | — | ||||||||||||
Excess purchase price over carrying value of acquired assets | — | ( | ) | — | ( | ) | ||||||||
Reimbursement of excess purchase price over carrying value of acquired assets | — | — | ||||||||||||
Purchase of treasury units | ( | ) | ( | ) | — | ( | ) | |||||||
Balances - June 30, 2017 | $ | $ | $ |
Six Months Ended | |||||||
June 30, | |||||||
2017 | 2016 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | $ | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | |||||||
Amortization of deferred debt issuance costs | |||||||
Amortization of premium on notes payable | ( | ) | ( | ) | |||
Loss on sale of property, plant and equipment | |||||||
Loss on impairment of goodwill | |||||||
Equity in earnings of WTLPG | ( | ) | ( | ) | |||
Derivative (income) loss | ( | ) | |||||
Net cash (paid) received for commodity derivatives | ( | ) | |||||
Net cash received for interest rate derivatives | |||||||
Net premiums received on derivatives that settled during the year on interest rate swaption contracts | |||||||
Unit-based compensation | |||||||
Cash distributions from WTLPG | |||||||
Change in current assets and liabilities, excluding effects of acquisitions and dispositions: | |||||||
Accounts and other receivables | |||||||
Product exchange receivables | ( | ) | |||||
Inventories | ( | ) | ( | ) | |||
Due from affiliates | ( | ) | |||||
Other current assets | ( | ) | |||||
Trade and other accounts payable | ( | ) | ( | ) | |||
Product exchange payables | ( | ) | |||||
Due to affiliates | ( | ) | ( | ) | |||
Income taxes payable | ( | ) | ( | ) | |||
Other accrued liabilities | ( | ) | |||||
Change in other non-current assets and liabilities | ( | ) | |||||
Net cash provided by operating activities | |||||||
Cash flows from investing activities: | |||||||
Payments for property, plant and equipment | ( | ) | ( | ) | |||
Acquisitions | ( | ) | |||||
Acquisition of intangible assets | ( | ) | |||||
Payments for plant turnaround costs | ( | ) | ( | ) | |||
Proceeds from sale of property, plant and equipment | |||||||
Proceeds from involuntary conversion of property, plant and equipment | |||||||
Proceeds from repayment of Note receivable - affiliate | |||||||
Contributions to WTLPG | ( | ) | |||||
Net cash used in investing activities | ( | ) | ( | ) | |||
Cash flows from financing activities: | |||||||
Payments of long-term debt | ( | ) | ( | ) | |||
Proceeds from long-term debt | |||||||
Proceeds from issuance of common units, net of issuance related costs | |||||||
General partner contribution | |||||||
Purchase of treasury units | ( | ) | ( | ) | |||
Payment of debt issuance costs | ( | ) | ( | ) | |||
Excess purchase price over carrying value of acquired assets | ( | ) | |||||
Reimbursement of excess purchase price over carrying value of acquired assets | |||||||
Cash distributions paid | ( | ) | ( | ) | |||
Net cash used in financing activities | ( | ) | ( | ) | |||
Net increase (decrease) in cash | ( | ) | |||||
Cash at beginning of period | |||||||
Cash at end of period | $ | $ | |||||
Non-cash additions to property, plant and equipment | $ | $ |
(1) |
(2) |
(3) |
Purchase price | $ | ||
Historical carrying value of assets allocated to "Property, plant and equipment" | |||
Excess purchase price over carrying value of acquired assets | $ |
(4) |
June 30, 2017 | December 31, 2016 | ||||||
Terminalling and storage | $ | $ | |||||
Marine transportation | |||||||
Assets held for sale | $ | $ |
(5) |
June 30, 2017 | December 31, 2016 | ||||||
Natural gas liquids | $ | $ | |||||
Sulfur | |||||||
Sulfur based products | |||||||
Lubricants | |||||||
Other | |||||||
$ | $ |
(6) |
As of June 30, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||
Total Assets | Long-Term Debt | Members' Equity | Revenues | Net Income | Revenues | Net Income | ||||||||||||||||||||
2017 | ||||||||||||||||||||||||||
WTLPG | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||
As of December 31, | ||||||||||||||||||||||||||
2016 | ||||||||||||||||||||||||||
WTLPG | $ | $ | $ | $ | $ | $ | $ |
(7) |
Fair Values of Derivative Instruments in the Consolidated Balance Sheets | ||||||||||||||||
Derivative Assets | Derivative Liabilities | |||||||||||||||
Fair Values | Fair Values | |||||||||||||||
Balance Sheet Location | June 30, 2017 | December 31, 2016 | Balance Sheet Location | June 30, 2017 | December 31, 2016 | |||||||||||
Derivatives not designated as hedging instruments: | Current: | |||||||||||||||
Commodity contracts | Fair value of derivatives | $ | $ | Fair value of derivatives | $ | $ | ||||||||||
Total derivatives not designated as hedging instruments | $ | $ | $ | $ |
Location of Gain (Loss) Recognized in Income on Derivatives | Amount of Gain (Loss) Recognized in Income on Derivatives | |||||||
2017 | 2016 | |||||||
Derivatives not designated as hedging instruments: | ||||||||
Commodity contracts | Cost of products sold | $ | $ | ( | ) | |||
Total effect of derivatives not designated as hedging instruments | $ | $ | ( | ) |
Location of Gain (Loss) Recognized in Income on Derivatives | Amount of Gain (Loss) Recognized in Income on Derivatives | |||||||
2017 | 2016 | |||||||
Derivatives not designated as hedging instruments: | ||||||||
Interest rate swaption contracts | Interest expense | $ | $ | |||||
Interest rate contracts | Interest expense | |||||||
Commodity contracts | Cost of products sold | ( | ) | |||||
Total effect of derivatives not designated as hedging instruments | $ | ( | ) | $ |
(8) |
Level 2 | |||||||
June 30, 2017 | December 31, 2016 | ||||||
Commodity derivative contracts, net | $ | $ | ( | ) |
• | 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 below. There is negligible credit risk associated with these instruments. |
• |
June 30, 2017 | December 31, 2016 | ||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
Note receivable - affiliates | $ | $ | $ | $ | |||||||||||
2021 Senior unsecured notes |
(9) |
June 30, 2017 | December 31, 2016 | ||||||
Customer contracts and relationships, net | $ | $ | |||||
Other intangible assets | |||||||
Other | |||||||
$ | $ |
June 30, 2017 | December 31, 2016 | ||||||
Accrued interest | $ | $ | |||||
Asset retirement obligations | |||||||
Property and other taxes payable | |||||||
Accrued payroll | |||||||
Other | |||||||
$ | $ |
(10) |
June 30, 2017 | December 31, 2016 | ||||||
$664,444 Revolving credit facility at variable interest rate (3.97%1 weighted average at June 30, 2017), due March 2020 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, net of unamortized debt issuance costs of $6,069 and $7,132, respectively2 | $ | $ | |||||
$400,000 Senior notes, 7.25% interest, net of unamortized debt issuance costs of $2,481 and $2,823, respectively, including unamortized premium of $1,109 and $1,262, respectively, issued $250,000 February 2013 and $150,000 April 2014, $26,200 repurchased during 2015, due February 2021, unsecured2,3 | |||||||
Total long-term debt, net | $ | $ |
(11) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income (loss) | $ | $ | ( | ) | $ | $ | |||||||||
Less general partner’s interest in net income (loss): | |||||||||||||||
Distributions payable on behalf of IDRs | |||||||||||||||
Distributions payable on behalf of general partner interest | |||||||||||||||
General partner interest in undistributed loss | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Less income (loss) allocable to unvested restricted units | ( | ) | |||||||||||||
Limited partners’ interest in net income (loss) | $ | $ | ( | ) | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
Basic weighted average limited partner units outstanding | |||||||||||
Dilutive effect of restricted units issued | |||||||||||
Total weighted average limited partner diluted units outstanding |
(12) |
• | 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 Texas, Louisiana, Mississippi, Alabama, and Florida; |
◦ | 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; |
◦ | providing crude oil marketing and transportation from the well head to the end market; |
◦ | operating an environmental consulting company; |
◦ | operating an engineering services company; |
◦ | supplying employees and services for the operation of the Partnership's business; |
◦ | operating a crude oil, natural gas, natural gas liquids, and biofuels optimization business; and |
◦ | operating, solely for the Partnership's account, the asphalt facilities in Omaha, Nebraska, Port Neches, Texas, Hondo, Texas, and South Houston, Texas. |
• | any business that Martin Resource Management acquires or constructs that has a fair market value of less than $ |
• | any business that Martin Resource Management acquires or constructs that has a fair market value of $ |
• | 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 $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues: | |||||||||||||||
Terminalling and storage | $ | $ | $ | $ | |||||||||||
Marine transportation | |||||||||||||||
Natural gas services | |||||||||||||||
Product sales: | |||||||||||||||
Natural gas services | |||||||||||||||
Sulfur services | |||||||||||||||
Terminalling and storage | |||||||||||||||
$ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Cost of products sold: | |||||||||||||||
Natural gas services | $ | $ | $ | $ | |||||||||||
Sulfur services | |||||||||||||||
Terminalling and storage | |||||||||||||||
$ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Operating expenses: | |||||||||||||||
Marine transportation | $ | $ | $ | $ | |||||||||||
Natural gas services | |||||||||||||||
Sulfur services | |||||||||||||||
Terminalling and storage | |||||||||||||||
$ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Selling, general and administrative: | |||||||||||||||
Marine transportation | $ | $ | $ | $ | |||||||||||
Natural gas services | |||||||||||||||
Sulfur services | |||||||||||||||
Terminalling and storage | |||||||||||||||
Indirect, including overhead allocation | |||||||||||||||
$ | $ | $ | $ |
(13) |
(14) |
Three Months Ended June 30, 2017 | Operating Revenues | Intersegment Revenues Eliminations | Operating Revenues after Eliminations | Depreciation and Amortization | Operating Income (Loss) after Eliminations | Capital Expenditures and Plant Turnaround Costs | |||||||||||||||||
Terminalling and storage | $ | $ | ( | ) | $ | $ | $ | $ | |||||||||||||||
Natural gas services | |||||||||||||||||||||||
Sulfur services | |||||||||||||||||||||||
Marine transportation | ( | ) | |||||||||||||||||||||
Indirect selling, general and administrative | — | — | — | ( | ) | ||||||||||||||||||
Total | $ | $ | ( | ) | $ | $ | $ | $ |
Three Months Ended June 30, 2016 | Operating Revenues | Intersegment Revenues Eliminations | Operating Revenues after Eliminations | Depreciation and Amortization | Operating Income (Loss) after Eliminations | Capital Expenditures and Plant Turnaround Costs | |||||||||||||||||
Terminalling and storage | $ | $ | ( | ) | $ | $ | $ | $ | |||||||||||||||
Natural gas services | |||||||||||||||||||||||
Sulfur services | |||||||||||||||||||||||
Marine transportation | ( | ) | ( | ) | |||||||||||||||||||
Indirect selling, general and administrative | — | — | — | ( | ) | ||||||||||||||||||
Total | $ | $ | ( | ) | $ | $ | $ | $ |
Six Months Ended June 30, 2017 | Operating Revenues | Intersegment Revenues Eliminations | Operating Revenues after Eliminations | Depreciation and Amortization | Operating Income (Loss) after Eliminations | Capital Expenditures and Plant Turnaround Costs | |||||||||||||||||
Terminalling and storage | $ | $ | ( | ) | $ | $ | $ | $ | |||||||||||||||
Natural gas services | |||||||||||||||||||||||
Sulfur services | |||||||||||||||||||||||
Marine transportation | ( | ) | |||||||||||||||||||||
Indirect selling, general and administrative | — | — | — | ( | ) | ||||||||||||||||||
Total | $ | $ | ( | ) | $ | $ | $ | $ |
Six Months Ended June 30, 2016 | Operating Revenues | Intersegment Revenues Eliminations | Operating Revenues after Eliminations | Depreciation and Amortization | Operating Income (Loss) after Eliminations | Capital Expenditures and Plant Turnaround Costs | |||||||||||||||||
Terminalling and storage | $ | $ | ( | ) | $ | $ | $ | $ | |||||||||||||||
Natural gas services | |||||||||||||||||||||||
Sulfur services | |||||||||||||||||||||||
Marine transportation | ( | ) | ( | ) | |||||||||||||||||||
Indirect selling, general and administrative | — | — | — | ( | ) | ||||||||||||||||||
Total | $ | $ | ( | ) | $ | $ | $ | $ |
June 30, 2017 | December 31, 2016 | ||||||
Total assets: | |||||||
Terminalling and storage | $ | $ | |||||
Natural gas services | |||||||
Sulfur services | |||||||
Marine transportation | |||||||
Total assets | $ | $ |
(15) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Employees | $ | $ | $ | $ | |||||||||||
Non-employee directors | |||||||||||||||
Total unit-based compensation expense | $ | $ | $ | $ |
Number of Units | Weighted Average Grant-Date Fair Value Per Unit | ||||||
Non-vested, beginning of period | $ | ||||||
Granted | $ | ||||||
Vested | ( | ) | $ | ||||
Forfeited | ( | ) | $ | ||||
Non-Vested, end of period | $ | ||||||
Aggregate intrinsic value, end of period | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Aggregate intrinsic value of units vested | $ | $ | $ | $ | |||||||||||
Fair value of units vested |
(16) |
(17) |
(18) |
(19) |
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 of naphthenic crude oil and the blending and packaging of finished lubricants; |
• | Natural gas liquids transportation and 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 an increase in uncollectible receivables. A 10% increase in our allowance for doubtful accounts would not significantly impact net income. | ||
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 - 50 years. If the depreciable lives of our assets were decreased by 10%, we estimate that annual depreciation expense would increase approximately $8.5 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. | No impairment of long-lived assets was recorded during the three and six months ended June 30, 2017 or 2016. | ||
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. | During the three months ended June 30, 2016, we determined that based on a continued decrease in the demand for utilization and transportation day rates forecasted in our Marine Transportation reporting unit, an impairment of goodwill may exist. Based on the results of our impairment analysis, we determined that a $4.1 million impairment loss of all goodwill in the Marine Transportation reporting unit was incurred during the three months ended June 30, 2016. See note 18 for more information. We completed the most recent annual review of goodwill as of August 31, 2016. Management is aware of no change in circumstances which indicate a need for an interim impairment evaluation. | ||
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 are 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, ammonia, asphalt, sulfuric acid, marine fuel and other liquids; |
• | providing marine bunkering and other shore-based marine services in Texas, Louisiana, Mississippi, Alabama, and Florida; |
• | 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; |
• | providing crude oil marketing and transportation from the well head to the end market; |
• | operating an environmental consulting company; |
• | operating an engineering services company; |
• | supplying employees and services for the operation of our business; |
• | operating a crude oil, natural gas, natural gas liquids, and biofuels optimization business; and |
• | operating, solely for our account, the asphalt facilities in Omaha, Nebraska, Port Neches, Texas, Hondo, Texas, and South Houston, Texas. |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in thousands) | |||||||||||||||
Net income (loss) | $ | 989 | $ | (1,211 | ) | $ | 14,572 | $ | 14,703 | ||||||
Adjustments: | |||||||||||||||
Interest expense, net | 11,219 | 12,155 | 22,139 | 22,267 | |||||||||||
Income tax expense | 13 | 191 | 193 | 242 | |||||||||||
Depreciation and amortization | 20,326 | 22,089 | 45,662 | 44,137 | |||||||||||
EBITDA | 32,547 | 33,224 | 82,566 | 81,349 | |||||||||||
Adjustments: | |||||||||||||||
Equity in earnings of WTLPG | (853 | ) | (805 | ) | (1,758 | ) | (2,482 | ) | |||||||
(Gain) loss on sale of property, plant and equipment | (15 | ) | 1,679 | 140 | 1,595 | ||||||||||
Loss on impairment of goodwill | — | 4,145 | — | 4,145 | |||||||||||
Unrealized mark-to-market on commodity derivatives | (200 | ) | 1,327 | (4,037 | ) | 1,537 | |||||||||
Distributions from WTLPG | 1,300 | 1,800 | 2,500 | 4,300 | |||||||||||
Unit-based compensation | 219 | 264 | 405 | 486 | |||||||||||
Adjusted EBITDA | 32,998 | 41,634 | 79,816 | 90,930 | |||||||||||
Adjustments: | |||||||||||||||
Interest expense, net | (11,219 | ) | (12,155 | ) | (22,139 | ) | (22,267 | ) | |||||||
Income tax expense | (13 | ) | (191 | ) | (193 | ) | (242 | ) | |||||||
Amortization of debt premium | (76 | ) | (76 | ) | (153 | ) | (153 | ) | |||||||
Amortization of deferred debt issuance costs | 724 | 1,532 | 1,445 | 2,247 | |||||||||||
Non-cash mark-to-market on interest rate derivatives | — | — | — | (206 | ) | ||||||||||
Payments for plant turnaround costs | (197 | ) | (193 | ) | (1,591 | ) | (1,184 | ) | |||||||
Maintenance capital expenditures | (2,618 | ) | (5,165 | ) | (7,286 | ) | (11,209 | ) | |||||||
Distributable Cash Flow | $ | 19,599 | $ | 25,386 | $ | 49,899 | $ | 57,916 |
Operating Revenues | Intersegment Revenues Eliminations | Operating Revenues after Eliminations | Operating Income (Loss) | Operating Income (Loss) Intersegment Eliminations | Operating Income (Loss) after Eliminations | ||||||||||||||||||
Three Months Ended June 30, 2017 | (in thousands) | ||||||||||||||||||||||
Terminalling and storage | $ | 59,561 | $ | (1,453 | ) | $ | 58,108 | $ | 4,128 | $ | (876 | ) | $ | 3,252 | |||||||||
Natural gas services | 88,504 | — | 88,504 | 3,619 | 805 | 4,424 | |||||||||||||||||
Sulfur services | 34,877 | — | 34,877 | 7,126 | (831 | ) | 6,295 | ||||||||||||||||
Marine transportation | 13,144 | (711 | ) | 12,433 | 247 | 902 | 1,149 | ||||||||||||||||
Indirect selling, general and administrative | — | — | — | (4,272 | ) | — | (4,272 | ) | |||||||||||||||
Total | $ | 196,086 | $ | (2,164 | ) | $ | 193,922 | $ | 10,848 | $ | — | $ | 10,848 |
Three Months Ended June 30, 2016 | |||||||||||||||||||||||
Terminalling and storage | $ | 60,721 | $ | (1,302 | ) | $ | 59,419 | $ | 8,440 | $ | (765 | ) | $ | 7,675 | |||||||||
Natural gas services | 74,302 | — | 74,302 | 3,045 | 653 | 3,698 | |||||||||||||||||
Sulfur services | 42,288 | — | 42,288 | 11,099 | (813 | ) | 10,286 | ||||||||||||||||
Marine transportation | 15,032 | (693 | ) | 14,339 | (8,086 | ) | 925 | (7,161 | ) | ||||||||||||||
Indirect selling, general and administrative | — | — | — | (4,242 | ) | — | (4,242 | ) | |||||||||||||||
Total | $ | 192,343 | $ | (1,995 | ) | $ | 190,348 | $ | 10,256 | $ | — | $ | 10,256 |
Operating Revenues | Intersegment Revenues Eliminations | Operating Revenues after Eliminations | Operating Income (Loss) | Operating Income (Loss) Intersegment Eliminations | Operating Income (Loss) after Eliminations | ||||||||||||||||||
Six Months Ended June 30, 2017 | (in thousands) | ||||||||||||||||||||||
Terminalling and storage | $ | 118,139 | $ | (3,226 | ) | $ | 114,913 | $ | 3,235 | $ | (2,084 | ) | $ | 1,151 | |||||||||
Natural gas services | 229,826 | — | 229,826 | 20,768 | 1,929 | 22,697 | |||||||||||||||||
Sulfur services | 77,254 | — | 77,254 | 18,606 | (1,544 | ) | 17,062 | ||||||||||||||||
Marine transportation | 26,558 | (1,304 | ) | 25,254 | 679 | 1,699 | 2,378 | ||||||||||||||||
Indirect selling, general and administrative | — | — | — | (8,692 | ) | — | (8,692 | ) | |||||||||||||||
Total | $ | 451,777 | $ | (4,530 | ) | $ | 447,247 | $ | 34,596 | $ | — | $ | 34,596 |
Operating Revenues | Intersegment Revenues Eliminations | Operating Revenues after Eliminations | Operating Income (Loss) | Operating Income (Loss) Intersegment Eliminations | Operating Income (Loss) after Eliminations | ||||||||||||||||||
Six Months Ended June 30, 2016 | (in thousands) | ||||||||||||||||||||||
Terminalling and storage | $ | 122,071 | $ | (2,756 | ) | $ | 119,315 | $ | 15,726 | $ | (1,701 | ) | $ | 14,025 | |||||||||
Natural gas services | 181,490 | — | 181,490 | 16,088 | 1,457 | 17,545 | |||||||||||||||||
Sulfur services | 84,463 | — | 84,463 | 19,958 | (1,487 | ) | 18,471 | ||||||||||||||||
Marine transportation | 31,934 | (1,249 | ) | 30,685 | (8,708 | ) | 1,731 | (6,977 | ) | ||||||||||||||
Indirect selling, general and administrative | — | — | — | (8,470 | ) | — | (8,470 | ) | |||||||||||||||
Total | $ | 419,958 | $ | (4,005 | ) | $ | 415,953 | $ | 34,594 | $ | — | $ | 34,594 |
Three Months Ended June 30, | Variance | Percent Change | ||||||||||||
2017 | 2016 | |||||||||||||
(In thousands, except BBL per day) | ||||||||||||||
Revenues: | ||||||||||||||
Services | $ | 26,148 | $ | 32,392 | $ | (6,244 | ) | (19 | )% | |||||
Products | 33,413 | 28,329 | 5,084 | 18 | % | |||||||||
Total revenues | 59,561 | 60,721 | (1,160 | ) | (2 | )% | ||||||||
Cost of products sold | 28,591 | 23,471 | 5,120 | 22 | % | |||||||||
Operating expenses | 15,081 | 17,725 | (2,644 | ) | (15 | )% | ||||||||
Selling, general and administrative expenses | 1,444 | 1,007 | 437 | 43 | % | |||||||||
Depreciation and amortization | 10,327 | 10,078 | 249 | 2 | % | |||||||||
4,118 | 8,440 | (4,322 | ) | (51 | )% | |||||||||
Other operating income | 10 | — | 10 | |||||||||||
Operating income | $ | 4,128 | $ | 8,440 | $ | (4,312 | ) | (51 | )% | |||||
Lubricant sales volumes (gallons) | 5,361 | 5,194 | 167 | 3 | % | |||||||||
Shore-based throughput volumes (guaranteed minimum) (gallons) | 41,666 | 50,000 | (8,334 | ) | (17 | )% | ||||||||
Smackover refinery throughput volumes (guaranteed minimum BBL per day) | 6,500 | 6,500 | — | — | % | |||||||||
Corpus Christi crude terminal (BBL per day) | — | 74,565 | (74,565 | ) | (100 | )% |
Six Months Ended June 30, | Variance | Percent Change | ||||||||||||
2017 | 2016 | |||||||||||||
(In thousands, except BBL per day) | ||||||||||||||
Revenues: | ||||||||||||||
Services | $ | 52,579 | $ | 65,549 | $ | (12,970 | ) | (20 | )% | |||||
Products | 65,560 | 56,522 | 9,038 | 16 | % | |||||||||
Total revenues | 118,139 | 122,071 | (3,932 | ) | (3 | )% | ||||||||
Cost of products sold | 55,602 | 47,821 | 7,781 | 16 | % | |||||||||
Operating expenses | 30,726 | 36,441 | (5,715 | ) | (16 | )% | ||||||||
Selling, general and administrative expenses | 2,769 | 2,107 | 662 | 31 | % | |||||||||
Depreciation and amortization | 25,804 | 20,076 | 5,728 | 29 | % | |||||||||
3,238 | 15,626 | (12,388 | ) | (79 | )% | |||||||||
Other operating income (loss) | (3 | ) | 100 | (103 | ) | (103 | )% | |||||||
Operating income | $ | 3,235 | $ | 15,726 | $ | (12,491 | ) | (79 | )% | |||||
Lubricant sales volumes (gallons) | 10,695 | 10,340 | 355 | 3 | % | |||||||||
Shore-based throughput volumes (guaranteed minimum) (gallons) | 83,333 | 100,000 | (16,667 | ) | (17 | )% | ||||||||
Smackover refinery throughput volumes (guaranteed minimum) (BBL per day) | 6,500 | 6,500 | — | — | % | |||||||||
Corpus Christi crude terminal (BBL per day) | — | 83,600 | (83,600 | ) | (100 | )% |
Three Months Ended June 30, | Variance | Percent Change | ||||||||||||
2017 | 2016 | |||||||||||||
(In thousands) | ||||||||||||||
Revenues: | ||||||||||||||
Services | $ | 14,838 | $ | 15,403 | $ | (565 | ) | (4 | )% | |||||
Products | 73,666 | 58,899 | 14,767 | 25 | % | |||||||||
Total revenues | 88,504 | 74,302 | 14,202 | 19 | % | |||||||||
Cost of products sold | 71,003 | 56,233 | 14,770 | 26 | % | |||||||||
Operating expenses | 5,567 | 6,138 | (571 | ) | (9 | )% | ||||||||
Selling, general and administrative expenses | 2,115 | 1,807 | 308 | 17 | % | |||||||||
Depreciation and amortization | 6,205 | 6,983 | (778 | ) | (11 | )% | ||||||||
3,614 | 3,141 | 473 | 15 | % | ||||||||||
Other operating income (loss) | 5 | (96 | ) | 101 | (105 | )% | ||||||||
Operating income | $ | 3,619 | $ | 3,045 | $ | 574 | 19 | % | ||||||
Distributions from WTLPG | $ | 1,300 | $ | 1,800 | $ | (500 | ) | (28 | )% | |||||
NGL sales volumes (Bbls) | 1,794 | 1,726 | 68 | 4 | % |
Six Months Ended June 30, | Variance | Percent Change | ||||||||||||
2017 | 2016 | |||||||||||||
(In thousands) | ||||||||||||||
Revenues: | ||||||||||||||
Services | $ | 29,503 | $ | 31,500 | $ | (1,997 | ) | (6 | )% | |||||
Products | 200,323 | 149,990 | 50,333 | 34 | % | |||||||||
Total revenues | 229,826 | 181,490 | 48,336 | 27 | % | |||||||||
Cost of products sold | 180,306 | 135,581 | 44,725 | 33 | % | |||||||||
Operating expenses | 11,225 | 11,657 | (432 | ) | (4 | )% | ||||||||
Selling, general and administrative expenses | 5,166 | 4,111 | 1,055 | 26 | % | |||||||||
Depreciation and amortization | 12,366 | 13,957 | (1,591 | ) | (11 | )% | ||||||||
20,763 | 16,184 | 4,579 | 28 | % | ||||||||||
Other operating income (loss) | 5 | (96 | ) | 101 | (105 | )% | ||||||||
Operating income | $ | 20,768 | $ | 16,088 | $ | 4,680 | 29 | % | ||||||
Distributions from WTLPG | $ | 2,500 | $ | 4,300 | $ | (1,800 | ) | (42 | )% | |||||
NGL sales volumes (Bbls) | 4,604 | 4,928 | (324 | ) | (7 | )% |
Three Months Ended June 30, | Variance | Percent Change | ||||||||||||
2017 | 2016 | |||||||||||||
(In thousands) | ||||||||||||||
Revenues: | ||||||||||||||
Services | $ | 2,850 | $ | 2,700 | $ | 150 | 6 | % | ||||||
Products | 32,027 | 39,588 | (7,561 | ) | (19 | )% | ||||||||
Total revenues | 34,877 | 42,288 | (7,411 | ) | (18 | )% | ||||||||
Cost of products sold | 21,297 | 24,790 | (3,493 | ) | (14 | )% | ||||||||
Operating expenses | 3,417 | 3,442 | (25 | ) | (1 | )% | ||||||||
Selling, general and administrative expenses | 1,007 | 930 | 77 | 8 | % | |||||||||
Depreciation and amortization | 2,030 | 2,011 | 19 | 1 | % | |||||||||
7,126 | 11,115 | (3,989 | ) | (36 | )% | |||||||||
Other operating loss | — | (16 | ) | 16 | (100 | )% | ||||||||
Operating income | $ | 7,126 | $ | 11,099 | $ | (3,973 | ) | (36 | )% | |||||
Sulfur (long tons) | 192 | 181 | 11 | 6 | % | |||||||||
Fertilizer (long tons) | 71 | 87 | (16 | ) | (18 | )% | ||||||||
Total sulfur services volumes (long tons) | 263 | 268 | (5 | ) | (2 | )% |
Six Months Ended June 30, | Variance | Percent Change | ||||||||||||
2017 | 2016 | |||||||||||||
(In thousands) | ||||||||||||||
Revenues: | ||||||||||||||
Services | $ | 5,700 | $ | 5,400 | $ | 300 | 6 | % | ||||||
Products | 71,554 | 79,063 | (7,509 | ) | (9 | )% | ||||||||
Total revenues | 77,254 | 84,463 | (7,209 | ) | (9 | )% | ||||||||
Cost of products sold | 45,871 | 52,405 | (6,534 | ) | (12 | )% | ||||||||
Operating expenses | 6,664 | 6,199 | 465 | 8 | % | |||||||||
Selling, general and administrative expenses | 2,028 | 1,888 | 140 | 7 | % | |||||||||
Depreciation and amortization | 4,063 | 3,981 | 82 | 2 | % | |||||||||
18,628 | 19,990 | (1,362 | ) | (7 | )% | |||||||||
Other operating loss | (22 | ) | (32 | ) | 10 | (31 | )% | |||||||
Operating income | $ | 18,606 | $ | 19,958 | $ | (1,352 | ) | (7 | )% | |||||
Sulfur (long tons) | 409 | 338 | 71 | 21 | % | |||||||||
Fertilizer (long tons) | 165 | 170 | (5 | ) | (3 | )% | ||||||||
Total sulfur services volumes (long tons) | 574 | 508 | 66 | 13 | % |
Three Months Ended June 30, | Variance | Percent Change | |||||||||||
2017 | 2016 | ||||||||||||
(In thousands) | |||||||||||||
Revenues | $ | 13,144 | $ | 15,032 | $ | (1,888 | ) | (13)% | |||||
Operating expenses | 11,062 | 14,231 | (3,169 | ) | (22)% | ||||||||
Selling, general and administrative expenses | 71 | 158 | (87 | ) | (55)% | ||||||||
Loss on impairment of goodwill | — | 4,145 | (4,145 | ) | (100)% | ||||||||
Depreciation and amortization | 1,764 | 3,017 | (1,253 | ) | (42)% | ||||||||
247 | (6,519 | ) | 6,766 | (104)% | |||||||||
Other operating loss | — | (1,567 | ) | 1,567 | (100)% | ||||||||
Operating income (loss) | $ | 247 | $ | (8,086 | ) | $ | 8,333 | (103)% |
Six Months Ended June 30, | Variance | Percent Change | |||||||||||
2017 | 2016 | ||||||||||||
(In thousands) | |||||||||||||
Revenues | $ | 26,558 | $ | 31,934 | $ | (5,376 | ) | (17)% | |||||
Operating expenses | 22,155 | 29,068 | (6,913 | ) | (24)% | ||||||||
Selling, general and administrative expenses | 175 | (261 | ) | 436 | (167)% | ||||||||
Loss on impairment of goodwill | — | 4,145 | (4,145 | ) | (100)% | ||||||||
Depreciation and amortization | 3,429 | 6,123 | (2,694 | ) | (44)% | ||||||||
$ | 799 | $ | (7,141 | ) | $ | 7,940 | (111)% | ||||||
Other operating loss | (120 | ) | (1,567 | ) | 1,447 | (92)% | |||||||
Operating income (loss) | $ | 679 | $ | (8,708 | ) | $ | 9,387 | (108)% |
Three Months Ended June 30, | Variance | Percent Change | |||||||||||
2017 | 2016 | ||||||||||||
(In thousands) | |||||||||||||
Equity in earnings of WTLPG | $ | 853 | $ | 805 | $ | 48 | 6% |
Three Months Ended June 30, | Variance | Percent Change | |||||||||||
2017 | 2016 | ||||||||||||
(In thousands) | |||||||||||||
Distributions from WTLPG | $ | 1,300 | $ | 1,800 | $ | (500 | ) | (28)% |
Six Months Ended June 30, | Variance | Percent Change | ||||||||||||
2017 | 2016 | |||||||||||||
(In thousands) | ||||||||||||||
Equity in earnings of WTLPG | $ | 1,758 | $ | 2,482 | $ | (724 | ) | (29 | )% |
Six Months Ended June 30, | Variance | Percent Change | ||||||||||||
2017 | 2016 | |||||||||||||
(In thousands) | ||||||||||||||
Distributions from WTLPG | $ | 2,500 | $ | 4,300 | $ | (1,800 | ) | (42 | )% |
Three Months Ended June 30, | Variance | Percent Change | |||||||||||
2017 | 2016 | ||||||||||||
(In thousands) | |||||||||||||
Revolving loan facility | $ | 3,954 | $ | 4,550 | $ | (596 | ) | (13)% | |||||
7.25% Senior notes | 6,851 | 6,851 | — | —% | |||||||||
Amortization of deferred debt issuance costs | 724 | 1,532 | (808 | ) | (53)% | ||||||||
Amortization of debt discount | (76 | ) | (76 | ) | — | —% | |||||||
Other | 376 | 217 | 159 | 73% | |||||||||
Capitalized interest | (222 | ) | (358 | ) | 136 | (38)% | |||||||
Interest income | (388 | ) | (561 | ) | 173 | (31)% | |||||||
Total interest expense, net | $ | 11,219 | $ | 12,155 | $ | (936 | ) | (8)% |
Six Months Ended June 30, | Variance | Percent Change | |||||||||||
2017 | 2016 | ||||||||||||
(In thousands) | |||||||||||||
Revolving loan facility | $ | 8,099 | $ | 8,726 | $ | (627 | ) | (7)% | |||||
7.25% Senior notes | 13,325 | 13,626 | (301 | ) | (2)% | ||||||||
Amortization of deferred debt issuance costs | 1,445 | 2,247 | (802 | ) | (36)% | ||||||||
Amortization of debt premium | (153 | ) | (153 | ) | — | —% | |||||||
Impact of interest rate derivative activity, including cash settlements | — | (995 | ) | 995 | (100)% | ||||||||
Other | 811 | 620 | 191 | 31% | |||||||||
Capitalized interest | (445 | ) | (682 | ) | 237 | (35)% | |||||||
Interest income | (943 | ) | (1,122 | ) | 179 | (16)% | |||||||
Total interest expense, net | $ | 22,139 | $ | 22,267 | $ | (128 | ) | (1)% |
Three Months Ended June 30, | Variance | Percent Change | Six Months Ended June 30, | Variance | Percent Change | ||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||||||||
Indirect selling, general and administrative expenses | $ | 4,272 | $ | 4,242 | $ | 30 | 1% | $ | 8,692 | $ | 8,470 | $ | 222 | 3% |
Three Months Ended June 30, | Variance | Percent Change | Six Months Ended June 30, | Variance | Percent Change | ||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||||||||
Conflicts Committee approved reimbursement amount | $ | 4,104 | $ | 3,257 | $ | 847 | 26% | $ | 8,208 | $ | 6,516 | $ | 1,692 | 26% |
Six Months Ended June 30, | Variance | Percent Change | |||||||||||
2017 | 2016 | ||||||||||||
(In thousands) | |||||||||||||
Net cash provided by (used in): | |||||||||||||
Operating activities | $ | 45,788 | $ | 74,803 | $ | (29,015 | ) | (39)% | |||||
Investing activities | (24,428 | ) | (21,423 | ) | (3,005 | ) | 14% | ||||||
Financing activities | (21,343 | ) | (53,383 | ) | 32,040 | (60)% | |||||||
Net increase (decrease) in cash and cash equivalents | $ | 17 | $ | (3 | ) | $ | 20 | (667)% |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(In thousands) | |||||||||||||||
Expansion capital expenditures | $ | 11,065 | $ | 3,078 | $ | 14,317 | $ | 11,620 | |||||||
Maintenance capital expenditures | 2,618 | 5,164 | 7,286 | 11,209 | |||||||||||
Plant turnaround costs | 197 | 193 | 1,591 | 1,184 | |||||||||||
Total | $ | 13,880 | $ | 8,435 | $ | 23,194 | $ | 24,013 |
Payments due by period | |||||||||||||||||||
Type of Obligation | Total Obligation | Less than One Year | 1-3 Years | 3-5 Years | Due Thereafter | ||||||||||||||
Revolving credit facility | $ | 414,000 | $ | — | $ | 414,000 | $ | — | $ | — | |||||||||
2021 Senior unsecured notes | 373,800 | — | — | 373,800 | — | ||||||||||||||
Throughput commitment | 24,986 | 6,234 | 12,947 | 5,805 | — | ||||||||||||||
Operating leases | 29,983 | 7,278 | 10,180 | 4,369 | 8,156 | ||||||||||||||
Interest payable on fixed long-term debt obligations | 98,240 | 27,101 | 54,201 | 16,938 | — | ||||||||||||||
Total contractual cash obligations | $ | 941,009 | $ | 40,613 | $ | 491,328 | $ | 400,912 | $ | 8,156 |
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 | |||
Its General Partner | ||||
Date: 7/26/2017 | By: | /s/ Robert D. Bondurant | ||
Robert D. Bondurant | ||||
Executive Vice President, Treasurer, Chief Financial Officer, and Principal Accounting Officer |
Exhibit Number | Exhibit Name | |
10.1 | ||
31.1* | ||
31.2* | ||
32.1* | ||
32.2* | ||
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 March 31, 2017, formatted in Extensible Business Reporting Language: (1) the Consolidated and Condensed Balance Sheets; (2) the Consolidated and Condensed Statements of Income; (3) the Consolidated and Condensed Statements of Cash Flows; (4) the Consolidated and Condensed Statements of Capital; and (5) the Notes to Consolidated and Condensed Financial Statements. |
Date: 7/26/2017 | |
/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: 7/26/2017 | |
/s/ Robert D. Bondurant | |
Robert D. Bondurant, Executive Vice President, Treasurer, Chief Financial Officer and Principal Accounting 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, | ||
the General Partner of Martin Midstream Partners L.P. | ||
July 26, 2017 |
/s/ Robert D. Bondurant | ||
Robert D. Bondurant, | ||
Chief Financial Officer | ||
of Martin Midstream GP LLC, | ||
the General Partner of Martin Midstream Partners L.P. | ||
July 26, 2017 |
Document and Entity Information - shares |
6 Months Ended | |
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Jun. 30, 2017 |
Jul. 26, 2017 |
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Document and Entity Information [Abstract] | ||
Entity Registrant Name | MARTIN MIDSTREAM PARTNERS LP | |
Entity Central Index Key | 0001176334 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding (in shares) | 38,452,112 |
CONSOLIDATED AND CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Dec. 31, 2016 |
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Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 238 | $ 372 |
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
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Revenues: | |||||||
Terminalling and storage | [1] | $ 24,695 | $ 31,090 | $ 49,353 | $ 62,795 | ||
Marine transportation | [1] | 12,433 | 14,339 | 25,254 | 30,685 | ||
Natural gas services | [1] | 14,838 | 15,403 | 29,503 | 31,500 | ||
Sulfur services | 2,850 | 2,700 | 5,700 | 5,400 | |||
Product sales: | |||||||
Natural gas services | [1] | 73,666 | 58,899 | 200,323 | 149,990 | ||
Sulfur services | [1] | 32,027 | 39,588 | 71,554 | 79,063 | ||
Terminalling and storage | [1] | 33,413 | 28,329 | 65,560 | 56,520 | ||
Total product sales | [1] | 139,106 | 126,816 | 337,437 | 285,573 | ||
Total revenues | 193,922 | 190,348 | 447,247 | 415,953 | |||
Cost of products sold: (excluding depreciation and amortization) | |||||||
Natural gas services | [1] | 70,198 | 55,579 | 178,377 | 134,123 | ||
Sulfur services | [1] | 21,207 | 24,700 | 45,690 | 52,224 | ||
Terminalling and storage | [1] | 28,014 | 22,934 | 54,460 | 46,766 | ||
Total cost of products sold (excluding depreciation and amortization) | [1] | 119,419 | 103,213 | 278,527 | 233,113 | ||
Expenses: | |||||||
Operating expenses | [1] | 34,435 | 40,822 | 69,492 | 82,054 | ||
Selling, general and administrative | [1] | 8,909 | 8,144 | 18,830 | 16,315 | ||
Loss on impairment of goodwill | 0 | 4,145 | 0 | 4,145 | |||
Depreciation and amortization | 20,326 | 22,089 | 45,662 | 44,137 | |||
Total costs and expenses | 183,089 | 178,413 | 412,511 | 379,764 | |||
Other operating income (loss) | 15 | (1,679) | (140) | (1,595) | |||
Operating income | 10,848 | 10,256 | 34,596 | 34,594 | |||
Other income (expense): | |||||||
Equity in earnings of WTLPG | 853 | 805 | 1,758 | 2,482 | |||
Interest expense, net | (11,219) | (12,155) | (22,139) | (22,267) | |||
Other, net | 520 | 74 | 550 | 136 | |||
Total other expense | (9,846) | (11,276) | (19,831) | (19,649) | |||
Net income (loss) before taxes | 1,002 | (1,020) | 14,765 | 14,945 | |||
Income tax expense | (13) | (191) | (193) | (242) | |||
Net income (loss) | 989 | (1,211) | 14,572 | 14,703 | |||
Less general partner's interest in net income | (19) | (3,869) | (291) | (8,080) | |||
Less (income) loss allocable to unvested restricted units | (3) | 4 | (38) | (39) | |||
Limited partners' interest in net income (loss) | $ 967 | $ (5,076) | $ 14,243 | $ 6,584 | |||
Net income per unit attributable to limited partners - basic (USD per share) | $ 0.03 | $ (0.14) | $ 0.38 | $ 0.19 | |||
Net income per unit attributable to limited partners - diluted (USD per share) | $ 0.03 | $ (0.14) | $ 0.38 | $ 0.19 | |||
Weighted average limited partner units - basic (in shares) | 38,357,293 | 35,346,412 | 37,842,140 | 35,366,038 | |||
Weighted average limited partner units - diluted (in shares) | 38,413,911 | 35,346,412 | 37,894,616 | 35,379,918 | |||
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CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - Related Party Transactions - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Revenues: | ||||
Terminalling and storage | $ 20,331 | $ 20,590 | $ 40,035 | $ 41,548 |
Marine transportation | 4,187 | 6,036 | 8,512 | 12,447 |
Natural gas services | 6 | 129 | 118 | 442 |
Product Sales | 724 | 968 | 2,154 | 1,668 |
Cost of products sold: (excluding depreciation and amortization) | ||||
Natural gas services | 2,909 | 4,498 | 11,803 | 7,883 |
Sulfur services | 3,767 | 3,810 | 7,442 | 7,622 |
Terminalling and storage | 4,119 | 4,081 | 9,186 | 7,466 |
Expenses: | ||||
Operating expenses | 16,452 | 18,088 | 32,828 | 35,445 |
Selling, general and administrative | $ 6,500 | $ 6,911 | $ 14,068 | $ 12,343 |
General |
6 Months Ended |
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Jun. 30, 2017 | |
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 ("U.S.") Gulf Coast region. Its four primary business lines include: natural gas services, including liquids transportation and distribution services and natural gas storage; terminalling and storage services for petroleum products and by-products including the refining of naphthenic crude oil, blending and packaging of finished lubricants; 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 U.S. 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, 2016, filed with the Securities and Exchange Commission (the "SEC") on February 15, 2017, as amended by Amendment No. 1 on Form 10-K/A for the year ended December 31, 2016 filed on March 31, 2017. |
New Accounting Pronouncements |
6 Months Ended |
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Jun. 30, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2017-04 “Intangibles-Goodwill and other: Simplifying the test for goodwill impairment.” This ASU removes the second step of the two-step test currently required under the current guidance. An entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. This ASU is effective for financial statements issued for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The Partnership elected to early adopt this amended guidance effective January 1, 2017. The Partnership expects that adoption of this standard will change its approach for testing goodwill for impairment; however, this standard requires prospective application and therefore will only impact periods subsequent to adoption. In August 2016, the Financial Accounting Standards Board FASB issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments. This ASU is intended to clarify the presentation of cash receipts and payments in specific situations. The amendments in this ASU are effective for financial statements issued for annual periods beginning after December 15, 2017, including interim periods within those annual periods, and early application is permitted. The Partnership does not anticipate that ASU 2016-15 will have a material effect on its consolidated and condensed financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, Leases. This ASU amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. Early adoption of this standard is permitted. The standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Partnership is evaluating the effect that ASU 2016-02 will have on its consolidated and condensed financial statements and related disclosures. |
Acquisitions |
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Jun. 30, 2017 | |||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||
Acquisitions | Acquisitions Acquisition of Terminalling Assets. On February 22, 2017, the Partnership acquired 100% of the membership interests of MEH South Texas Terminals LLC (“MEH”), a subsidiary of Martin Resource Management, for a purchase price of $27,420 (the “Hondo Acquisition”), which was was funded with borrowings under the Partnership's revolving credit facility. At the date of acquisition, MEH was in the process of constructing an asphalt terminal facility in Hondo, Texas (the "Hondo Terminal”), which will serve the asphalt market in San Antonio, Texas and surrounding areas. The Partnership will spend $8,580 to finalize construction of the Hondo Terminal with substantial completion expected to be on or about August 31, 2017. Martin Resource Management is obligated to pay the Partnership the amount required to complete the construction of the Hondo Terminal in excess of $8,580, if any. As of June 30, 2017, the Partnership has spent $4,779 towards project construction since the acquisition on February 22, 2017. This acquisition is considered a transfer of net assets between entities under common control. The acquisition of these assets was recorded at the historical carrying value of the assets at the acquisition date. The excess of the purchase price over the carrying value of the assets of $7,887 was recorded as an adjustment to "Partners' capital."
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Divestitures and discontinued operations |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Divestitures and discontinued operations | Divestitures and discontinued operations Long-Lived Assets Held for Sale In the fourth quarter of 2016, the Partnership identified certain assets that were no longer deemed core to the operations of the Partnership in the Smackover refinery and Martin Lubricants divisions of the Terminalling and Storage segment as well as the inland and offshore divisions of the Marine Transportation segment. At June 30, 2017 and December 31, 2016, the assets met the criteria to be classified as held for sale in accordance with ASC 360-10 and are presented at the lower of the assets' carrying amount or fair value less cost to sell by segment in current assets as follows:
The non-core assets discussed above did not qualify for discontinued operations presentation under the guidance of ASC 205-20. Divestitures Divestiture of Terminalling Assets. On December 21, 2016, the Partnership sold its 900,000 barrel crude oil storage terminal, refined product barge terminal, certain pipelines and related easements as well as dockage and trans-loading assets located in Corpus Christi, Texas (collectively the "CCCT Assets") to NuStar Logistics, L.P. (“NuStar”) for gross consideration of $107,000 plus the reimbursement of certain capital expenditures and prepaid items of $2,057. The Partnership received net proceeds of approximately $93,347 after transaction fees and expenses as well as the application of certain net cash payments previously received by the Partnership in conjunction with its mandated relocation of certain dockage assets to the purchase price in the amount of $13,400. Proceeds from the sale were used to reduce outstanding borrowings under the Partnership's revolving credit facility. The Partnership recorded a gain from the divestiture of $37,345, which was included in "Other operating income, net" on the Partnership's Consolidated Statements of Operations for the year ended December 31, 2016. Net income attributable to the CCCT Assets included in the Partnership's Consolidated Statements of Operations was $1,697 and $3,513 for the three and six months ended June 30, 2016, respectively. |
Inventories |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Components of inventories at June 30, 2017 and December 31, 2016 were as follows:
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Investment in West Texas LPG Pipeline L.P. |
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Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in West Texas LPG Pipeline L.P. | Investment in West Texas LPG Pipeline L.P. The Partnership owns a 19.8% limited partnership and 0.2% general partnership interest in West Texas LPG Pipeline L.P. ("WTLPG"). A wholly-owned subsidiary of ONEOK, Inc. is the operator of the assets. WTLPG owns an approximate 2,300 mile common-carrier pipeline system that primarily transports NGLs from New Mexico and Texas to Mont Belvieu, Texas for fractionation. The Partnership recognizes its 20% interest in WTLPG as "Investment in WTLPG" on its Consolidated and Condensed Balance Sheets. The Partnership accounts for its ownership interest in WTLPG under the equity method of accounting. Selected financial information for WTLPG is as follows:
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Derivative Instruments and Hedging Activities |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Partnership’s revenues and cost of products sold are materially impacted by changes in NGL prices. Additionally, the Partnership's results of operations are materially impacted by changes in interest rates. In an effort to manage its exposure to these risks, the Partnership periodically enters into various derivative instruments, including commodity and interest rate hedges. All derivatives and hedging instruments are included on the balance sheet as an asset or a liability measured at fair value and changes in fair value are recognized currently in earnings. All of the Partnership's derivatives are non-hedge derivatives and therefore all changes in fair values are recognized as gains and losses in the earnings of the periods in which they occur. (a) Commodity Derivative Instruments The Partnership from time to time has used derivatives to manage the risk of commodity price fluctuation. Commodity risk is the adverse effect on the value of a liability or future purchase that results from a change in commodity price. The Partnership has established a hedging policy and monitors and manages the commodity market risk associated with potential commodity risk exposure. In addition, the Partnership has focused on utilizing counterparties for these transactions whose financial condition is appropriate for the credit risk involved in each specific transaction. The Partnership has entered into hedging transactions as of June 30, 2017 to protect a portion of its commodity price risk exposure. These hedging arrangements are in the form of swaps for NGLs. The Partnership has instruments totaling a gross notional quantity of 128,000 barrels settling during the period from July 1, 2017 through December 29, 2017. At December 31, 2016, the Partnership had instruments totaling a gross notional quantity of 2,589 barrels settling during the period from January 1, 2017 through June 30, 2017. These instruments settle against the applicable pricing source for each grade and location. Martin Energy Trading LLC ("MET"), an affiliate of Martin Resource Management, serves as the counterparty for all positions outstanding at June 30, 2017. (b) Interest Rate Derivative Instruments The Partnership is exposed to market risks associated with interest rates. Market risk is the adverse effect on the value of a financial instrument that results from a change in interest rates. We minimize this market risk by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken. The Partnership enters into interest rate swaps to manage interest rate risk associated with the Partnership’s variable rate credit facility and its fixed rate senior unsecured notes. At June 30, 2017, the Partnership did not have any outstanding interest rate derivative instruments. During the six months ended June 30, 2016, the Partnership entered into contracts which provided the counterparty the option to enter into swap contracts to hedge the Partnership's exposure to changes in the fair value of its senior unsecured notes ("interest rate swaptions") through June 30, 2016. In connection with the interest rate swaption contracts, the Partnership received premiums of $630, which represented their fair value on the date the transactions were initiated and were initially recorded as derivative liabilities on the Partnership's Consolidated and Condensed Balance Sheets, during the six months ended June 30, 2016. Each of the interest rate swaptions were fully amortized as of June 30, 2016. Interest rate swaption contract premiums received are amortized over the period from initiation of the contract through their termination date. For the six months ended June 30, 2016, the Partnership recognized $630 of premiums in "Interest expense, net" on the Partnership's Consolidated and Condensed Statements of Operations related to the interest rate swaption contracts. On January 7, 2016, the Partnership terminated a fixed-to-variable interest rate swap position with a notional principal amount of $50,000, resulting in a benefit of $366, which was recorded in "Interest expense, net" on the Partnership's Consolidated and Condensed Statement of Operations. For information regarding gains and losses on interest rate derivative instruments, see "Tabular Presentation of Gains and Losses on Derivative Instruments" below. (c) Tabular Presentation of Gains and Losses on Derivative Instruments The following table summarizes the fair value and classification of the Partnership’s derivative instruments in its Consolidated and Condensed Balance Sheets:
Effect of Derivative Instruments on the Consolidated and Condensed Statements of Operations For the Three Months Ended June 30, 2017 and 2016
Effect of Derivative Instruments on the Consolidated and Condensed Statements of Operations For the Six Months Ended June 30, 2017 and 2016
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements The Partnership uses a valuation framework based upon inputs that market participants use in pricing certain assets and liabilities. These inputs are classified into two categories: observable inputs and unobservable inputs. Observable inputs represent market data obtained from independent sources. Unobservable inputs represent the Partnership's own market assumptions. Unobservable inputs are used only if observable inputs are unavailable or not reasonably available without undue cost and effort. The two types of inputs are further prioritized into the following hierarchy: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that reflect the entity's own assumptions and are not corroborated by market data. Assets and liabilities measured at fair value on a recurring basis are summarized below:
The Partnership is required to disclose estimated fair values for its financial instruments. Fair value estimates are set forth below for these financial instruments. The following methods and assumptions were used to estimate the fair value of each class of financial instrument:
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Supplemental Balance Sheet Information |
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Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information Components of "Other assets, net" were as follows:
Accumulated amortization of intangible assets was $56,082 and $48,876 at June 30, 2017 and December 31, 2016, respectively. Components of "Other accrued liabilities" were as follows:
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Long-Term Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | Long-Term Debt At June 30, 2017 and December 31, 2016, long-term debt consisted of the following:
1 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. All amounts outstanding at June 30, 2017 and December 31, 2016 were at LIBOR 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 at June 30, 2017 is 2.75%. The credit facility contains various covenants which limit the Partnership’s ability to make certain investments and acquisitions; enter into certain agreements; incur indebtedness; sell assets; and make certain amendments to the Partnership's omnibus agreement with Martin Resource Management (the "Omnibus Agreement"). The Partnership is permitted to make quarterly distributions so long as no event of default exists. 2 The Partnership is in compliance with all debt covenants as of June 30, 2017 and December 31, 2016, respectively. 3 The 2021 indenture restricts the Partnership’s ability to sell assets; pay distributions or repurchase units or redeem or repurchase subordinated debt; make investments; incur or guarantee additional indebtedness or issue preferred units; and consolidate, merge or transfer all or substantially all of its assets. Many of these covenants will terminate if the notes achieve an investment grade rating from each of Moody’s Investors Service, Inc. and Standard & Poor’s Ratings Services and no default (as defined in the indenture) has occurred. |
Partners' Capital |
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Partners' Capital Notes [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Partners' Capital | Partners' Capital As of June 30, 2017, Partners’ capital consisted of 38,452,112 common limited partner units, representing a 98% partnership interest, and a 2% general partner interest. Martin Resource Management, through subsidiaries, owns 6,264,532 of the Partnership's common limited partner units representing approximately 16.3% of the Partnership's outstanding common limited partner units. Martin Midstream GP LLC ("MMGP"), the Partnership's general partner, owns the 2% general partnership interest. Martin Resource Management controls the Partnership's general partner, by virtue of its 51% voting interest in MMGP Holdings, LLC ("Holdings"), the sole member of the Partnership's general partner. 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 February 22, 2017, the Partnership completed a public offering of 2,990,000 common units at a price of $18.00 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 2,990,000 common units, net of underwriters' discounts, commissions and offering expenses, were $51,071. Additionally, the Partnership's general partner contributed $1,098 in cash to the Partnership in conjunction with the issuance in order to maintain its 2.0% general partner interest in the Partnership. All of the net proceeds were used to pay down outstanding amounts under the Partnership's revolving credit facility. Incentive Distribution Rights MMGP 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. The general partner was allocated $0 and $3,893 in incentive distributions during the three months ended June 30, 2017 and 2016, respectively. The general partner was allocated $0 and $7,786 in incentive distributions during the six months ended June 30, 2017 and 2016, respectively. The target distribution levels entitle the general partner to receive 2% of quarterly cash distributions from the minimum of $0.50 per unit 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. 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 income and 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 allocated to the general partner and limited partners for purposes of calculating net income attributable to limited partners per unit:
The following are the unit amounts used to compute the basic and diluted earnings per limited partner unit for the periods presented:
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Related Party Transactions |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions | Related Party Transactions As of June 30, 2017, Martin Resource Management owns 6,264,532 of the Partnership’s common units representing approximately 16.3% of the Partnership’s outstanding limited partner units. Martin Resource Management controls the Partnership's general partner by virtue of its 51% voting interest in Holdings, the sole member of the Partnership's general partner. The Partnership’s general partner, MMGP, owns a 2% general partner interest in the Partnership and the Partnership’s IDRs. The Partnership’s general partner’s ability, as general partner, to manage and operate the Partnership, and Martin Resource Management’s ownership as of June 30, 2017, of approximately 16.3% of the Partnership’s outstanding limited partner units, effectively gives Martin Resource Management the ability to veto some of the Partnership’s actions and to control the Partnership’s management. The following is a description of the Partnership’s material related party agreements and transactions: Omnibus Agreement Omnibus Agreement. The Partnership and its general partner are parties to the Omnibus Agreement dated November 1, 2002, with Martin Resource Management that governs, among other things, potential competition and indemnification obligations among the parties to the agreement, related party transactions, the provision of general administration and support services by Martin Resource Management and the Partnership’s use of certain Martin Resource Management trade names and trademarks. The Omnibus Agreement was amended on November 25, 2009, to include processing crude oil into finished products including naphthenic lubricants, distillates, asphalt and other intermediate cuts. The Omnibus Agreement was amended further on October 1, 2012, to permit the Partnership to provide certain lubricant packaging products and services to Martin Resource Management. Non-Competition Provisions. Martin Resource Management has agreed for so long as it controls the general partner of the Partnership, not to engage in the business of:
•providing marine transportation of petroleum products and by-products; •distributing NGLs; and •manufacturing and selling sulfur-based fertilizer products and other sulfur-related products. This restriction does not apply to:
Services. Under the Omnibus Agreement, Martin Resource Management provides the Partnership with corporate staff, support services, and administrative services necessary to operate the Partnership’s business. The Omnibus Agreement requires the Partnership to reimburse Martin Resource Management for all direct expenses it incurs or payments it makes on the Partnership’s behalf or in connection with the operation of the Partnership’s business. There is no monetary limitation on the amount the Partnership is required to reimburse Martin Resource Management for direct expenses. In addition to the direct expenses, under the Omnibus Agreement, the Partnership is required to reimburse Martin Resource Management for indirect general and administrative and corporate overhead expenses. Effective January 1, 2017, through December 31, 2017, the Conflicts Committee approved an annual reimbursement amount for indirect expenses of $16,416. The Partnership reimbursed Martin Resource Management for $4,104 and $3,257 of indirect expenses for the three months ended June 30, 2017 and 2016, respectively. The Partnership reimbursed Martin Resource Management for $8,208 and $6,516 of indirect expenses for the six months ended June 30, 2017 and 2016, respectively. The Conflicts Committee will review and approve future adjustments in the reimbursement amount for indirect expenses, if any, annually. These indirect expenses are intended to cover the centralized corporate functions Martin Resource Management provides for the Partnership, such as accounting, treasury, clerical, engineering, legal, billing, information technology, administration of insurance, general office expenses and employee benefit plans and other general corporate overhead functions the Partnership shares with Martin Resource Management retained businesses. The provisions of the Omnibus Agreement regarding Martin Resource Management’s services will terminate if Martin Resource Management ceases to control the general partner of the Partnership. Related Party Transactions. The Omnibus Agreement prohibits the Partnership from entering into any material agreement with Martin Resource Management without the prior approval of the Conflicts Committee. For purposes of the Omnibus Agreement, the term "material agreements" means any agreement between the Partnership and Martin Resource Management that requires aggregate annual payments in excess of the then-applicable agreed upon reimbursable amount of indirect general and administrative expenses. Please read "Services" above. License Provisions. Under the Omnibus Agreement, Martin Resource Management has granted the Partnership a nontransferable, nonexclusive, royalty-free right and license to use certain of its trade names and marks, as well as the trade names and marks used by some of its affiliates. Amendment and Termination. The Omnibus Agreement may be amended by written agreement of the parties; provided, however, that it may not be amended without the approval of the Conflicts Committee if such amendment would adversely affect the unitholders. The Omnibus Agreement was first amended on November 25, 2009, to permit the Partnership to provide refining services to Martin Resource Management. The Omnibus Agreement was amended further on October 1, 2012, to permit the Partnership to provide certain lubricant packaging products and services to Martin Resource Management. Such amendments were approved by the Conflicts Committee. The Omnibus Agreement, other than the indemnification provisions and the provisions limiting the amount for which the Partnership will reimburse Martin Resource Management for general and administrative services performed on its behalf, will terminate if the Partnership is no longer an affiliate of Martin Resource Management. Motor Carrier Agreement Motor Carrier Agreement. The Partnership is a party to a motor carrier agreement effective January 1, 2006, as amended, with Martin Transport, Inc., a wholly owned subsidiary of Martin Resource Management through which Martin Transport, Inc. operates its land transportation operations. Under the agreement, Martin Transport, Inc. agreed to transport the Partnership's NGLs as well as other liquid products. Term and Pricing. The agreement has an initial term that expired in December 2007 but automatically renews for consecutive one year periods unless either party terminates the agreement by giving written notice to the other party at least 30 days prior to the expiration of the then-applicable term. The Partnership has the right to terminate this agreement at any time by providing 90 days prior notice. These rates are subject to any adjustments which are mutually agreed upon or in accordance with a price index. Additionally, during the term of the agreement, shipping charges are also subject to fuel surcharges determined on a weekly basis in accordance with the U.S. Department of Energy’s national diesel price list. Indemnification. Martin Transport, Inc. has indemnified the Partnership against all claims arising out of the negligence or willful misconduct of Martin Transport, Inc. and its officers, employees, agents, representatives and subcontractors. The Partnership has indemnified Martin Transport, Inc. against all claims arising out of the negligence or willful misconduct of the Partnership and its officers, employees, agents, representatives and subcontractors. In the event a claim is the result of the joint negligence or misconduct of Martin Transport, Inc. and the Partnership, indemnification obligations will be shared in proportion to each party’s allocable share of such joint negligence or misconduct. Marine Agreements Marine Transportation Agreement. The Partnership is a party to a marine transportation agreement effective January 1, 2006, as amended, under which the Partnership provides marine transportation services to Martin Resource Management on a spot-contract basis at applicable market rates. Effective each January 1, this agreement automatically renews for consecutive one year periods unless either party terminates the agreement by giving written notice to the other party at least 60 days prior to the expiration of the then applicable term. The fees the Partnership charges Martin Resource Management are based on applicable market rates. Marine Fuel. The Partnership is a party to an agreement with Martin Resource Management dated November 1, 2002, under which Martin Resource Management provides the Partnership with marine fuel from its locations in the Gulf of Mexico at a fixed rate in excess of the Platt’s U.S. Gulf Coast Index for #2 Fuel Oil. Under this agreement, the Partnership agreed to purchase all of its marine fuel requirements that occur in the areas serviced by Martin Resource Management. Terminal Services Agreements Diesel Fuel Terminal Services Agreement. Effective January 1, 2016, the Partnership entered into a new terminalling services agreement under which the Partnership provides terminal services to Martin Resource Management for marine fuel distribution. The per gallon throughput fee the Partnership charges under this agreement was increased when compared to the previous agreement and may be adjusted annually based on a price index. This agreement was amended on January 1, 2017 to reduce the minimum throughput requirements under such agreement. This agreement, as amended, will remain in place until the Partnership terminates it by providing 60 days’ written notice. Miscellaneous Terminal Services Agreements. The Partnership is currently party to several terminal services agreements and from time to time the Partnership may enter into other terminal service agreements for the purpose of providing terminal services to related parties. Individually, each of these agreements is immaterial but when considered in the aggregate they could be deemed material. These agreements are throughput based with a minimum volume commitment. Generally, the fees due under these agreements are adjusted annually based on a price index. Other Agreements Cross Tolling Agreement. The Partnership is a party to an amended and restated tolling agreement with Cross Oil Refining and Marketing, Inc. ("Cross") dated October 28, 2014, under which the Partnership processes crude oil into finished products, including naphthenic lubricants, distillates, asphalt and other intermediate cuts for Cross. The tolling agreement expires November 25, 2031. Under this tolling agreement, Cross agreed to process a minimum of 6,500 barrels per day of crude oil at the facility at a fixed price per barrel. Any additional barrels are processed at a modified price per barrel. In addition, Cross agreed to pay a monthly reservation fee and a periodic fuel surcharge fee based on certain parameters specified in the tolling agreement. All of these fees (other than the fuel surcharge) are subject to escalation annually based upon the greater of 3% or the increase in the Consumer Price Index for a specified annual period. In addition, on the third, sixth and ninth anniversaries of the agreement, the parties can negotiate an upward or downward adjustment in the fees subject to their mutual agreement. Sulfuric Acid Sales Agency Agreement. The Partnership is party to a second amended and restated sulfuric acid sales agency agreement dated August 5, 2013, under which Martin Resource Management purchases and markets the sulfuric acid produced by the Partnership’s sulfuric acid production plant at Plainview, Texas, that is not consumed by the Partnership’s internal operations. This agreement, as amended, will remain in place until the Partnership terminates it by providing 180 days’ written notice. Under this agreement, the Partnership sells all of its excess sulfuric acid to Martin Resource Management. Martin Resource Management then markets such acid to third-parties and the Partnership shares in the profit of Martin Resource Management’s sales of the excess acid to such third parties. Other Miscellaneous Agreements. From time to time the Partnership enters into other miscellaneous agreements with Martin Resource Management for the provision of other services or the purchase of other goods. The tables below summarize the related party transactions that are included in the related financial statement captions on the face of the Partnership’s Consolidated and Condensed Statements of Operations. The revenues, costs and expenses reflected in these tables are tabulations of the related party transactions that are recorded in the corresponding captions of the consolidated and condensed financial statements and do not reflect a statement of profits and losses for 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:
Other Related Party Transactions The Partnership had a $15,000 note receivable from an affiliate of Martin Resource Management which previously bore an annual interest rate of 15% and had a maturity date of August 31, 2026, the balance of which could be prepaid on or after September 1, 2016. On February 14, 2017, the Partnership notified Martin Resource Management that it would be requesting voluntary repayment of the long-term Note Receivable plus accrued interest. During second quarter of 2017, the Note Receivable was fully repaid. The note has historically been recorded in "Note receivable - affiliates" on the Partnership's Consolidated and Condensed Balance Sheets. Interest income for the three months ended June 30, 2017 and 2016 was $388 and $561, respectively, and is included in "Interest expense, net" in the Consolidated and Condensed Statements of Operations. Interest income for the six months ended June 30, 2017 and 2016 was $943 and $1,122, respectively, and is included in "Interest expense, net" in the Consolidated and Condensed Statements of Operations. |
Income Taxes |
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Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The operations of a partnership are generally not subject to income taxes because its income is taxed directly to its partners. The Partnership is subject to the Texas margin tax, which is considered a state income tax, and is included in income tax expense on the Consolidated Statements of Operations. Since the tax base on the Texas margin tax is derived from an income-based measure, the margin tax is construed as an income tax and, therefore, the recognition of deferred taxes applies to the margin tax. The impact on deferred taxes as a result of this provision is immaterial. State income taxes attributable to the Texas margin tax of $13 and $191 were recorded in income tax expense for the three months ended June 30, 2017 and 2016, respectively. State income taxes attributable to the Texas margin tax of $193 and $242 were recorded in income tax expense for the six months ended June 30, 2017 and 2016, respectively. |
Business Segments |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segments | Business Segments The Partnership has four reportable segments: terminalling and storage, natural gas services, sulfur services and marine transportation. The Partnership’s reportable segments are strategic business units that offer different products and services. The operating income of these segments is reviewed by the chief operating decision maker to assess performance and make business decisions. The accounting policies of the operating segments are the same as those described in Note 2 in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2016, filed with the SEC on February 15, 2017, as amended, by Amendment No. 1 on Form 10-K/A filed on March 31, 2017. The Partnership evaluates the performance of its reportable segments based on operating income. There is no allocation of administrative expenses or interest expense.
The Partnership's assets by reportable segment as of June 30, 2017 and December 31, 2016, are as follows:
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Unit Based Awards |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unit Based Awards | Unit Based Awards The Partnership recognizes compensation cost related to unit-based awards to employees in its consolidated financial statements in accordance with certain provisions of ASC 718. The Partnership recognizes compensation costs related to unit-based awards to directors under certain provisions of ASC 505-50-55 related to equity-based payments to non-employees. Amounts recognized in selling, general, and administrative expense in the consolidated and condensed financial statements with respect to these plans are as follows:
Long-Term Incentive Plans The Partnership's general partner has a long-term incentive plan for employees and directors of the general partner and its affiliates who perform services for the Partnership. On May 26, 2017, the unitholders of the Partnership approved the Martin Midstream Partners L.P. 2017 Restricted Unit Plan. The plan currently permits the grant of awards covering an aggregate of 3,000,000 common units, all of which can be awarded in the form of restricted units. The plan is administered by the compensation committee of the general partner’s board of directors (the "Compensation Committee"). A restricted unit is a unit that is granted to grantees with certain vesting restrictions. Once these restrictions lapse, the grantee is entitled to full ownership of the unit without restrictions. In addition, the restricted units will vest upon a change of control of the Partnership, the general partner or Martin Resource Management or if the general partner ceases to be an affiliate of Martin Resource Management. The Partnership intends the issuance of the common units upon vesting of the restricted units under the plan to serve as a means of incentive compensation for performance and not primarily as an opportunity to participate in the equity appreciation of the common units. Therefore, plan participants will not pay any consideration for the common units they receive, and the Partnership will receive no remuneration for the units. The restricted units issued to directors generally vest in equal annual installments over a four-year period. Restricted units issued to employees generally cliff vest after three years of service. The restricted units are valued at their fair value at the date of grant which is equal to the market value of common units on such date. A summary of the restricted unit activity for the six months ended June 30, 2017 is provided below:
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 six months ended June 30, 2017 and 2016 is provided below:
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Condensed Consolidating Financial Information |
6 Months Ended |
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Jun. 30, 2017 | |
Consolidating Financial Statements [Abstract] | |
Condensed Consolidating Financial Information | Condensed Consolidating Financial Information |
Commitments and Contingencies |
6 Months Ended |
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Jun. 30, 2017 | |
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. Pursuant to a Purchase Price Reimbursement Agreement between the Partnership and Martin Resource Management related to the Partnership’s acquisition of the Redbird Gas Storage LLC ("Redbird") Class A interests on October 2, 2012, beginning in the second quarter of 2015, Martin Resource Management will reimburse the Partnership $750 each quarter for four consecutive quarters as a reduction in the purchase price of the Redbird Class A interests. These payments are a result of Cardinal not achieving certain financial targets set forth in the Purchase Price Reimbursement Agreement. These payments are considered a reduction of the excess of the purchase price over the carrying value of the assets transferred to the Partnership from Martin Resource Management and will be recorded as an adjustment to "Partners' capital" in each quarter the payments are made. The agreement further provides for purchase price reimbursements of up to $4,500 in 2016 in the event certain financial conditions are not met. For the six months ended June 30, 2017 and 2016, the Partnership received $1,125 and $1,875, respectively, related to the Purchase Price Reimbursement Agreement. The amount received in the first quarter of 2017 represented the final payment under the Purchase Price Reimbursement Agreement. Certain shippers filed complaints with the Railroad Commission of Texas (“RRC”) challenging the increased rates WTLPG implemented effective July 1, 2015. The complainants requested that the rate increase be suspended until the RRC has determined appropriate new rates. On March 8, 2016, the RRC issued an order directing that WTLPG’s rates “in effect prior to July 1, 2015, are the lawful rates for the duration of this docket unless changed by Commission order.” A hearing on the merits was held in front of a hearings examiner during the week of March 27, 2017. A resolution of this matter is expected near the end of 2017. In 2015, the Partnership was named as a defendant in the cause J. A. Davis Properties, LLC v. Martin Operating Partnership L.P., in the 38th Judicial District Court, Cameron Parish, Louisiana. The plaintiff alleges that the Partnership has breached a lease agreement by failing to perform work to the plaintiff's property as required under the lease agreement. The plaintiff originally sought to evict the Partnership from the leased property and to recover damages. Presently, the plaintiff is only pursuing damages. The Partnership intends to vigorously defend this matter and has asserted appropriate counterclaims against the plaintiff. At this time, the Partnership is unable to ascertain the damages that could ultimately be awarded against it. A trial on the merits is scheduled for September 2017. |
Impairment and other charges |
6 Months Ended |
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Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairment and other charges | Impairments and other charges Marine Transportation Goodwill Impairment During the three months ended June 30, 2016, the Partnership determined that the state of market conditions in the Marine Transportation reporting unit, including the demand for utilization, day rates and the current oversupply of inland tank barges, indicated that an impairment of goodwill may exist. As a result, the Partnership assessed qualitative factors and determined that the Partnership could not conclude it was more likely than not that the fair value of goodwill exceeded its carrying value. In turn, the Partnership prepared a quantitative analysis of the fair value of the goodwill as of June 30, 2016, based on the weighted average valuation of the aforementioned income and market based valuation approaches. The underlying results of the valuation were driven by our actual results during the six months ended June 30, 2016 and the pricing and market conditions existing as of June 30, 2016, which were below our forecasts at the time of the previous goodwill assessments. Other key estimates, assumptions and inputs used in the valuation included long-term growth rates, discounts rates, terminal values, valuation multiples and relative valuations when comparing the reporting unit to similar businesses or asset bases. Upon completion of the analysis, a $4,145 impairment of all goodwill in the Marine Transportation reporting unit was incurred during the second quarter of 2016. The Partnership did not recognize any other goodwill impairment losses for the six months ended June 30, 2017 and 2016. Divestiture of Non-Core Marine Equipment |
Subsequent Events |
6 Months Ended |
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Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
New Accounting Pronouncements (Policies) |
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Jun. 30, 2017 | |||||
Accounting Changes and Error Corrections [Abstract] | |||||
New Accounting Pronouncements | New Accounting Pronouncements In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2017-04 “Intangibles-Goodwill and other: Simplifying the test for goodwill impairment.” This ASU removes the second step of the two-step test currently required under the current guidance. An entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. This ASU is effective for financial statements issued for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The Partnership elected to early adopt this amended guidance effective January 1, 2017. The Partnership expects that adoption of this standard will change its approach for testing goodwill for impairment; however, this standard requires prospective application and therefore will only impact periods subsequent to adoption. In August 2016, the Financial Accounting Standards Board FASB issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments. This ASU is intended to clarify the presentation of cash receipts and payments in specific situations. The amendments in this ASU are effective for financial statements issued for annual periods beginning after December 15, 2017, including interim periods within those annual periods, and early application is permitted. The Partnership does not anticipate that ASU 2016-15 will have a material effect on its consolidated and condensed financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, Leases. This ASU amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. Early adoption of this standard is permitted. The standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Partnership is evaluating the effect that ASU 2016-02 will have on its consolidated and condensed financial statements and related disclosures. |
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Fair Value Measurement | The Partnership uses a valuation framework based upon inputs that market participants use in pricing certain assets and liabilities. These inputs are classified into two categories: observable inputs and unobservable inputs. Observable inputs represent market data obtained from independent sources. Unobservable inputs represent the Partnership's own market assumptions. Unobservable inputs are used only if observable inputs are unavailable or not reasonably available without undue cost and effort. The two types of inputs are further prioritized into the following hierarchy: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that reflect the entity's own assumptions and are not corroborated by market data.
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Fair Value of Financial Instruments | The Partnership is required to disclose estimated fair values for its financial instruments. Fair value estimates are set forth below for these financial instruments. The following methods and assumptions were used to estimate the fair value of each class of financial instrument:
• Note receivable and 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 Partnership has not had any indicators which represent a change in the market spread associated with its variable interest rate debt. The estimated fair value of the senior unsecured notes is considered Level 1, as the fair value is based on quoted market prices in active markets. The estimated fair value of the note receivable - affiliates was determined by calculating the net present value of the payments over the life of the note. The note is considered Level 3 due to the lack of observable inputs for similar transactions between related parties.
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Acquisitions (Tables) |
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Jun. 30, 2017 | |||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||
Schedule of Business Acquisitions, by Acquisition |
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Divestitures and discontinued operations (Tables) |
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Long Lived Assets Held-for-sale | At June 30, 2017 and December 31, 2016, the assets met the criteria to be classified as held for sale in accordance with ASC 360-10 and are presented at the lower of the assets' carrying amount or fair value less cost to sell by segment in current assets as follows:
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Inventories (Tables) |
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of inventory | Components of inventories at June 30, 2017 and December 31, 2016 were as follows:
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Investment in West Texas LPG Pipeline L.P. (Tables) |
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Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Select Financial Information for Significant Unconsolidated Equity Method Investees | Selected financial information for WTLPG is as follows:
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Derivative Instruments and Hedging Activities (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of derivative instruments on the Consolidated Balance Sheets | The following table summarizes the fair value and classification of the Partnership’s derivative instruments in its Consolidated and Condensed Balance Sheets:
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Effect of derivative instruments on the Consolidated Statement of Operations | Effect of Derivative Instruments on the Consolidated and Condensed Statements of Operations For the Three Months Ended June 30, 2017 and 2016
Effect of Derivative Instruments on the Consolidated and Condensed Statements of Operations For the Six Months Ended June 30, 2017 and 2016
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Fair Value Measurements (Tables) |
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis |
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Supplemental Balance Sheet Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Assets | Components of "Other assets, net" were as follows:
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Schedule of Other Accrued Liabilities | Components of "Other accrued liabilities" were as follows:
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Long-Term Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of long-term debt | At June 30, 2017 and December 31, 2016, long-term debt consisted of the following:
1 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. All amounts outstanding at June 30, 2017 and December 31, 2016 were at LIBOR 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 at June 30, 2017 is 2.75%. The credit facility contains various covenants which limit the Partnership’s ability to make certain investments and acquisitions; enter into certain agreements; incur indebtedness; sell assets; and make certain amendments to the Partnership's omnibus agreement with Martin Resource Management (the "Omnibus Agreement"). The Partnership is permitted to make quarterly distributions so long as no event of default exists. 2 The Partnership is in compliance with all debt covenants as of June 30, 2017 and December 31, 2016, respectively. 3 The 2021 indenture restricts the Partnership’s ability to sell assets; pay distributions or repurchase units or redeem or repurchase subordinated debt; make investments; incur or guarantee additional indebtedness or issue preferred units; and consolidate, merge or transfer all or substantially all of its assets. Many of these covenants will terminate if the notes achieve an investment grade rating from each of Moody’s Investors Service, Inc. and Standard & Poor’s Ratings Services and no default (as defined in the indenture) has occurred. |
Partners' Capital (Tables) |
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Partners' Capital Notes [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of net income to partners interest in net income | The following is a reconciliation of net income allocated to the general partner and limited partners for purposes of calculating net income attributable to limited partners per unit:
The following are the unit amounts used to compute the basic and diluted earnings per limited partner unit for the periods presented:
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Related Party Transactions (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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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Business Segments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment reporting by segment |
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Assets by segment | The Partnership's assets by reportable segment as of June 30, 2017 and December 31, 2016, are as follows:
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Unit Based Awards (Tables) |
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 2017 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 six months ended June 30, 2017 and 2016 is provided below:
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General (Details) |
6 Months Ended |
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Jun. 30, 2017
segment
| |
Accounting Policies [Abstract] | |
Number of primary business lines (in segments) | 4 |
Acquisitions - Purchase Price (Details) - USD ($) $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Feb. 22, 2017 |
Jun. 30, 2017 |
Jun. 30, 2016 |
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Business Acquisition [Line Items] | |||
Excess purchase price over carrying value of acquired assets | $ 7,887 | $ 0 | |
MEH South Texas Terminals LLC | |||
Business Acquisition [Line Items] | |||
Purchase price | $ 27,420 | ||
Historical carrying value of assets allocated to Property, plant and equipment | 19,533 | ||
Excess purchase price over carrying value of acquired assets | $ 7,887 |
Divestitures and discontinued operations - (Long-Lived Assets Held-for-Sale) (Details) - Disposal Group, Held-for-sale, Not Discontinued Operations - USD ($) $ in Thousands |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Long lived assets held-for-sale fair value disclosure | $ 13,764 | $ 15,779 |
Terminalling and storage | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Long lived assets held-for-sale fair value disclosure | 10,537 | 10,852 |
Marine transportation | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Long lived assets held-for-sale fair value disclosure | $ 3,227 | $ 4,927 |
Divestitures and discontinued operations - Narrative (Details) - CCCT Assets $ in Thousands, bbl in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | |
---|---|---|---|---|
Dec. 21, 2016
USD ($)
bbl
|
Jun. 30, 2016
USD ($)
|
Jun. 30, 2016
USD ($)
|
Dec. 31, 2016
USD ($)
|
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from dock relocation | $ 13,400 | |||
Gain from divestiture | $ 37,345 | |||
Net income | $ 1,697 | $ 3,513 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Number of barrels in crude oil storage terminal (in bbl) | bbl | 0.9 | |||
Sale price | $ 107,000 | |||
Reimbursement of capital expenditures and prepaid Items | 2,057 | |||
Proceeds from divestiture of businesses | $ 93,347 |
Inventories (Details) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Natural gas liquids | $ 55,435 | $ 33,656 |
Sulfur | 7,955 | 8,521 |
Sulfur based products | 16,503 | 19,107 |
Lubricants | 18,972 | 18,276 |
Other | 2,831 | 3,071 |
Inventories | $ 101,696 | $ 82,631 |
Investment in West Texas LPG Pipeline L.P. - Narrative (Details) $ in Thousands |
Jun. 30, 2017
USD ($)
mi
|
Dec. 31, 2016
USD ($)
|
---|---|---|
Schedule of Equity Method Investments [Line Items] | ||
Partnership's interest in cash of the unconsolidated equity-method investees | $ | $ 523 | $ 631 |
West Texas LPG Pipeline L.P. | ||
Schedule of Equity Method Investments [Line Items] | ||
Length of common-carrier pipeline system (in miles) | mi | 2,300 | |
Unconsolidated interest ownership (percentage) | 20.00% | |
West Texas LPG Pipeline L.P. | General Partner Amount | ||
Schedule of Equity Method Investments [Line Items] | ||
Remaining ownership percentage in investment | 19.80% | |
West Texas LPG Pipeline L.P. | Common Limited | ||
Schedule of Equity Method Investments [Line Items] | ||
Remaining ownership percentage in investment | 0.20% |
Investment in West Texas LPG Pipeline L.P. (Selected Financial Information for Equity Method Investees) (Details) - West Texas LPG Pipeline L.P. - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Dec. 31, 2016 |
|
Schedule of Equity Method Investments [Line Items] | |||||
Total Assets | $ 805,854 | $ 805,854 | $ 812,464 | ||
Long-Term Debt | 0 | 0 | 0 | ||
Members' Equity | 787,420 | 787,420 | $ 790,406 | ||
Revenues | 21,420 | $ 20,166 | 41,139 | $ 45,021 | |
Net Income | $ 4,264 | $ 4,027 | $ 8,789 | $ 12,725 |
Derivative Instruments and Hedging Activities - Narrative (Details) |
6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Jan. 07, 2016
USD ($)
|
Jun. 30, 2017
bbl
|
Jun. 30, 2016
USD ($)
|
Dec. 31, 2016
bbl
|
|
Commodity contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional quantity (in bbl) | bbl | 128,000 | 2,589 | ||
Interest Rate Swaption | ||||
Derivatives, Fair Value [Line Items] | ||||
Premiums received | $ 630,000 | |||
Interest Rate Swaption | Interest expense | ||||
Derivatives, Fair Value [Line Items] | ||||
Premiums received | $ 630,000 | |||
Interest Rate Swap | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional principal amount | $ 50,000,000 | |||
Fair value of derivatives | Interest Rate Swap | ||||
Derivatives, Fair Value [Line Items] | ||||
Benefit from termination of position | $ 366,000 |
Derivative Instruments and Hedging Activities - Balance Sheet Derivatives (Details) - Derivatives not designated as hedging instruments - USD ($) $ in Thousands |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 133 | $ 0 |
Derivative Liabilities | 0 | 3,904 |
Commodity contracts | Fair value of derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 133 | 0 |
Derivative Liabilities | $ 0 | $ 3,904 |
Derivative Instruments and Hedging Activities - Statement of Operations Derivatives (Details) - Derivatives not designated as hedging instruments - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives | $ 103 | $ (876) | $ (2,392) | $ 1,125 |
Commodity contracts | Cost of products sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives | $ 103 | $ (876) | (2,392) | 129 |
Interest rate swaption contracts | Interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives | 0 | 630 | ||
Interest rate contracts | Interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives | $ 0 | $ 366 |
Supplemental Balance Sheet Information - Other Assets (Details) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||
Customer contracts and relationships, net | $ 30,881 | $ 36,528 |
Other intangible assets | 2,011 | 2,280 |
Other | 5,899 | 6,066 |
Other assets, net | 38,791 | 44,874 |
Accumulated amortization of intangible assets | $ 56,082 | $ 48,876 |
Supplemental Balance Sheet Information - Other Accrued Liabilities (Details) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||
Accrued interest | $ 10,354 | $ 10,629 |
Asset retirement obligations | 9,042 | 7,953 |
Property and other taxes payable | 5,812 | 6,443 |
Accrued payroll | 1,475 | 1,672 |
Other | 6 | 20 |
Total Other Accrued Liabilities | $ 26,689 | $ 26,717 |
Partners' Capital (Details) - USD ($) |
6 Months Ended | ||
---|---|---|---|
Feb. 22, 2017 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Limited Partners' Capital Account [Line Items] | |||
Common limited partner units (in shares) | 38,452,112 | ||
Ownership percentage | 98.00% | ||
General partner interest percentage | 2.00% | ||
Common units sold in public offering (in shares) | 2,990,000 | ||
Share price (USD per share) | $ 18.00 | ||
Proceeds from the sale of common units, net of offering costs | $ 51,071 | ||
General partner contribution | $ 1,098,000 | $ 1,098,000 | $ 0 |
Martin Resource Management | |||
Limited Partners' Capital Account [Line Items] | |||
Voting interest percentage | 51.00% | ||
Martin Resource Management | |||
Limited Partners' Capital Account [Line Items] | |||
Common limited partner units (in shares) | 6,264,532 | ||
Ownership percentage | 16.30% | ||
General partner interest percentage | 2.00% | ||
Voting interest percentage | 16.30% |
Partners' Capital - Net Income Per Unit (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Partners' Capital Notes [Abstract] | ||||
Net income (loss) | $ 989 | $ (1,211) | $ 14,572 | $ 14,703 |
Less general partner’s interest in net income (loss): | ||||
Distributions payable on behalf of IDRs | 0 | 3,893 | 0 | 7,786 |
Distributions payable on behalf of general partner interest | 393 | 668 | 785 | 1,335 |
General partner interest in undistributed loss | (374) | (692) | (494) | (1,041) |
Less income (loss) allocable to unvested restricted units | 3 | (4) | 38 | 39 |
Limited partners' interest in net income (loss) | $ 967 | $ (5,076) | $ 14,243 | $ 6,584 |
Basic weighted average limited partner units outstanding (in shares) | 38,357,293 | 35,346,412 | 37,842,140 | 35,366,038 |
Dilutive effect of restricted units issued (in shares) | 56,618 | 0 | 52,476 | 13,880 |
Total weighted average limited partner diluted units outstanding (in shares) | 38,413,911 | 35,346,412 | 37,894,616 | 35,379,918 |
Related Party Transactions - Omnibus Agreement (Details) - Omnibus Agreement - Martin Resource Management - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Related Party Transaction [Line Items] | ||||
Noncompete restriction threshold | $ 5,000,000 | $ 5,000,000 | ||
Noncompete restriction ownership option opportunity threshold minimum | 5,000,000 | 5,000,000 | ||
Noncompete restriction ownership option opportunity threshold minimum with equity limitation | $ 5,000,000 | $ 5,000,000 | ||
Equity limitation on ownership restriction percentage | 20.00% | 20.00% | ||
Approved annual reimbursements for indirect expenses | $ 16,416,000 | |||
Indirect expenses reimbursed | $ 4,104,000 | $ 3,257,000 | $ 8,208,000 | $ 6,516,000 |
Related Party Transactions - Motor Carrier Agreement (Details) - Motor Carrier Agreement - Martin Resource Management |
6 Months Ended |
---|---|
Jun. 30, 2017 | |
Related Party Transaction [Line Items] | |
Automatic consecutive term renewal period (in years) | 1 year |
Termination written notice, minimum (in days) | 30 days |
Partnership notice period to terminate agreement (in days) | 90 days |
Related Party Transactions - Marine Agreements (Details) - Marine Transportation Agreement - Martin Resource Management |
6 Months Ended |
---|---|
Jun. 30, 2017 | |
Related Party Transaction [Line Items] | |
Automatic consecutive term renewal period (in years) | 1 year |
Termination written notice, minimum (in days) | 60 days |
Related Party Transactions - Terminal Services Agreements (Details) |
6 Months Ended |
---|---|
Jun. 30, 2017 | |
Martin Resource Management | |
Related Party Transaction [Line Items] | |
Termination written notice, minimum (in days) | 60 days |
Related Party Transactions - Other Agreements (Details) - Martin Resource Management |
6 Months Ended |
---|---|
Jun. 30, 2017
bbl
| |
Cross Tolling Agreement | |
Related Party Transaction [Line Items] | |
Production minimum per day (in bbl) | 6,500 |
Annual escalation benchmark percentage | 3.00% |
Sulfuric Acid Sales Agency Agreement | |
Related Party Transaction [Line Items] | |
Partnership notice period to terminate agreement (in days) | 180 days |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
State and Local Jurisdiction | Texas | ||||
Income Tax Contingency [Line Items] | ||||
State income taxes | $ 13 | $ 191 | $ 193 | $ 242 |
Unit Based Awards - Schedule of Compensation Costs (Details) - Selling, General and Administrative Expenses - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total unit-based compensation expense | $ 219 | $ 264 | $ 405 | $ 486 |
Employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total unit-based compensation expense | 182 | 209 | 341 | 410 |
Non-employee directors | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total unit-based compensation expense | $ 37 | $ 55 | $ 64 | $ 76 |
Unit Based Awards - Narrative (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2017 |
May 26, 2017 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized (in shares) | 3,000,000 | |
Restricted Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost related to non-vested restricted units | $ 821 | |
Weighted average period for recognition (in years) | 1 year 2 months 12 days | |
Restricted Units | Non-employee directors | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period (in years) | 4 years | |
Restricted Units | Employees | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period (in years) | 3 years |
Unit Based Awards - Intrinsic and Fair Value (Details) - Restricted Units - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate intrinsic value of units vested | $ 10 | $ 0 | $ 135 | $ 1,183 |
Fair value of units vested | $ 20 | $ 0 | $ 190 | $ 1,685 |
Commitments and Contingencies (Details) |
6 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2015
lawsuit
|
Oct. 02, 2012
USD ($)
|
Jun. 30, 2017
USD ($)
|
Jun. 30, 2016
USD ($)
|
Dec. 31, 2016
USD ($)
|
|
Martin Resource Management | |||||
Loss Contingencies [Line Items] | |||||
Quarterly purchase price reimbursement for non compliance | $ 750,000 | $ 1,125,000 | $ 1,875,000 | ||
Maximum purchase price reimbursement for non compliance | $ 4,500,000 | ||||
Lubricants Packaging Business for Defense and Indemnity | |||||
Loss Contingencies [Line Items] | |||||
Number of lawsuits filed (in lawsuits) | lawsuit | 5 |
Impairment and other charges (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017
USD ($)
|
Jun. 30, 2016
USD ($)
push_boat
barge
|
Jun. 30, 2017
USD ($)
|
Jun. 30, 2016
USD ($)
|
|
Finite-Lived Intangible Assets [Line Items] | ||||
Loss on impairment of goodwill | $ 0 | $ 4,145 | $ 0 | $ 4,145 |
Marine transportation | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Loss on impairment of goodwill | $ 4,145 | |||
Number of inland tank barges disposed of | barge | 8 | |||
Number of inland push boats disposed of | push_boat | 2 | |||
Loss on disposition of assets | $ 1,567 |
Subsequent Events (Details) - Subsequent Event |
Jul. 20, 2017
$ / shares
|
---|---|
Subsequent Event [Line Items] | |
Dividends declared (USD per share) | $ 0.50 |
Estimated annualized dividends (USD per share) | $ 2.00 |
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