Discontinued Operations, Divestitures, and Assets Held for Sale

12 Months Ended

Dec. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations, Divestitures, and Assets Held for Sale

DISCONTINUED OPERATIONS, DIVESTITURES, AND ASSETS HELD FOR SALE

    Divestitures

Divestiture of Mega Lubricants. On December 22, 2020, the Partnership completed the sale of Mega Lubricants for $22,400. Mega Lubricants is engaged in the business of blending, manufacturing and delivering various marine application lubricants, sub-sea specialty fluids, and proprietary developed commercial and industrial products. The Partnership recorded a gain on the disposition of $10,101, which was included in "Other operating income, net" on the Partnership's Consolidated Statements of Operations. The proceeds from the transaction were used to reduce outstanding borrowings under the Partnership’s revolving credit facility. The divestiture of Mega Lubricants did not qualify for discontinued operations presentation under the guidance of ASC 205-20.

Divestiture of East Texas Pipeline. On August 12, 2019, the Partnership completed the sale of its East Texas Pipeline for $17,500. The Partnership recorded a gain on the disposition of $16,154, which was included in "Other operating income, net" on the Partnership's Consolidated Statements of Operations. The net proceeds were used to reduce outstanding borrowings under the Partnership's revolving credit facility. The divestiture of the East Texas Pipeline assets did not qualify for discontinued operations presentation under the guidance of ASC 205-20.

Divestiture of Natural Gas Storage Assets. On June 28, 2019, the Partnership completed the sale of the Natural Gas Storage Assets to Hartree, a subsidiary of Hartree Bulk Storage, LLC. The Natural Gas Storage Assets consist of approximately 50 billion cubic feet of working capacity located in northern Louisiana and Mississippi. In consideration of the sale of these assets, the Partnership received cash proceeds of $210,067 after transaction fees and expenses. The net proceeds were used to reduce outstanding borrowings under the Partnership's revolving credit facility. The Partnership concluded the disposition represents a strategic shift and will have a major effect on its financial results going forward. As a result, the Partnership has presented the results of operations and cash flows relating to the Natural Gas Storage Assets as discontinued operations for the years ended December 31, 2019 and 2018.

    The operating results, which are included in income (loss) from discontinued operations, were as follows:

	For the Year Ended December 31,
	2019		2018
Total revenues	$	22,836	$	52,108
Total costs and expenses and other, net, excluding depreciation and amortization	(15,360)		(20,703)
Depreciation and amortization	(8,161)		(18,795)
Other operating loss, net1	(178,781)		(824)
Other, net	—		—
Income (loss) from discontinued operations before income taxes	(179,466)		11,786
Income tax expense	—		—
Income (loss) from discontinued operations, net of income taxes	$	(179,466)	$	11,786

    1 The year ended December 31, 2019 includes a loss on the disposition of the Natural Gas Storage Assets of $178,781.

    Divestiture of WTLPG Partnership Interest. On July 31, 2018, the Partnership completed the sale of its 20 percent non-operating interest in WTLPG to ONEOK. 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. A wholly-owned subsidiary of ONEOK is the operator of the assets. In consideration for the sale of these assets, the Partnership received cash proceeds of $193,705, after transaction fees and expenses. The proceeds from the sale were used to reduce outstanding borrowings under the Partnership's revolving credit facility.  The Partnership concluded the disposition represents a strategic shift and will have a major effect on its financial results going forward. As a result, the Partnership has presented the results of operations and cash flows relating to its equity method investment in WTLPG as discontinued operations for the years ended December 31, 2018 and 2017.

    The operating results, which are included in income from discontinued operations, were as follows:

	For the Year Ended December 31,
	2018
Total costs and expenses and other, net, excluding depreciation and amortization1	$	(247)
Other operating income2	48,564
Equity in earnings	3,383
Income from discontinued operations before income taxes	51,700
Income tax expense	—
Income from discontinued operations, net of income taxes	$	51,700

1 These expenses represent direct operating expenses as a result of the Partnership's ownership interest in WTLPG.

2 Other operating income represents the gain on the disposition of the investment in WTLPG.

Long-Lived Assets Held for Sale

At December 31, 2019, certain terminalling and storage and transportation 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 in the table below. These assets are considered non-core assets to the Partnership's operations and did not qualify for discontinued operations presentation under the guidance of ASC 205-20.

	December 31, 2020		December 31, 2019
Terminalling and storage	$	—	$	3,552
Transportation	—		1,500
Assets held for sale	$	—	$	5,052

In the first quarter of 2020, the Partnership identified a triggering event related to a decline in the fair value related to the assets classified as held for sale at December 31, 2019. As a result, an impairment charge of $3,052 and $1,300 was recorded in the Terminalling and Storage and Transportation segments, respectively, during the year ended December 31, 2020 and was recorded in "Other operating income (loss)" in the Partnership's Consolidated Statements of Operations. At December 31, 2020, the remaining assets previously classified as held for sale in the amount of $700 no longer met the criteria to be classified as held for sale in accordance with ASC 360-10.

The non-core assets discussed above did not qualify for discontinued operations presentation under the guidance of ASC 205-20.