R | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 27‑4151603 | |
(State or other jurisdiction of | (I.R.S. Employer | |
incorporation or organization) | Identification No.) | |
19100 Ridgewood Pkwy, San Antonio, Texas 78259-1828 | ||
(Address of principal executive offices) (Zip Code) | ||
210-626-6000 | ||
(Registrant's telephone number, including area code) |
Large accelerated filer £ | Accelerated filer R |
Non-accelerated filer £ (Do not check if a smaller reporting company) | Smaller reporting company £ |
PART I. FINANCIAL INFORMATION | Page | |
PART II. OTHER INFORMATION | ||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(Dollars in thousands, except unit and per unit amounts) | |||||||||||||||
REVENUES | |||||||||||||||
Affiliate | $ | 54,102 | $ | 32,458 | $ | 101,994 | $ | 58,811 | |||||||
Third-party | 5,773 | 4,427 | 9,503 | 6,337 | |||||||||||
Total Revenues | 59,875 | 36,885 | 111,497 | 65,148 | |||||||||||
COSTS AND EXPENSES | |||||||||||||||
Operating and maintenance expenses | 24,235 | 16,566 | 43,724 | 32,142 | |||||||||||
Imbalance settlement gains | (2,576 | ) | (2,557 | ) | (5,000 | ) | (5,047 | ) | |||||||
Depreciation and amortization expenses | 6,338 | 2,879 | 10,419 | 5,690 | |||||||||||
General and administrative expenses | 6,604 | 3,732 | 12,657 | 7,307 | |||||||||||
Loss on asset disposals | — | — | 164 | 236 | |||||||||||
Total Costs and Expenses | 34,601 | 20,620 | 61,964 | 40,328 | |||||||||||
OPERATING INCOME | 25,274 | 16,265 | 49,533 | 24,820 | |||||||||||
Interest and financing costs, net | (6,571 | ) | (1,039 | ) | (12,175 | ) | (1,550 | ) | |||||||
Interest income | 470 | — | 493 | — | |||||||||||
NET INCOME | 19,173 | 15,226 | 37,851 | 23,270 | |||||||||||
Loss (income) attributable to Predecessors | — | (2,141 | ) | — | 1,371 | ||||||||||
Net income attributable to partners | 19,173 | 13,085 | 37,851 | 24,641 | |||||||||||
General partner's interest in net income, including incentive distribution rights | (1,978 | ) | (364 | ) | (3,514 | ) | (594 | ) | |||||||
Limited partners' interest in net income | $ | 17,195 | $ | 12,721 | $ | 34,337 | $ | 24,047 | |||||||
Net income per limited partner unit: | |||||||||||||||
Common - basic and diluted | $ | 0.38 | $ | 0.41 | $ | 0.77 | $ | 0.79 | |||||||
Subordinated - basic and diluted | $ | 0.36 | $ | 0.41 | $ | 0.73 | $ | 0.78 | |||||||
Weighted average limited partner units outstanding: | |||||||||||||||
Common units - basic | 30,752,989 | 15,464,686 | 29,812,337 | 15,359,788 | |||||||||||
Common units - diluted | 30,863,138 | 15,489,008 | 29,903,780 | 15,393,016 | |||||||||||
Subordinated units - basic and diluted | 15,254,890 | 15,254,890 | 15,254,890 | 15,254,890 | |||||||||||
Cash distributions per unit | $ | 0.51 | $ | 0.41 | $ | 1.00 | $ | 0.7875 |
June 30, 2013 | December 31, 2012 | ||||||
(Dollars in thousands) | |||||||
ASSETS | |||||||
CURRENT ASSETS | |||||||
Cash and cash equivalents | $ | 75,837 | $ | 19,290 | |||
Receivables | |||||||
Trade | 2,049 | 343 | |||||
Affiliate | 24,738 | 17,660 | |||||
Prepayments | 1,732 | 1,130 | |||||
Other current assets | 4,903 | — | |||||
Total Current Assets | 109,259 | 38,423 | |||||
NET PROPERTY, PLANT AND EQUIPMENT | 1,053,173 | 274,372 | |||||
DEPOSITS | 62 | 40,041 | |||||
GOODWILL | 8,738 | — | |||||
OTHER NONCURRENT ASSETS | 16,658 | 10,342 | |||||
Total Assets | $ | 1,187,890 | $ | 363,178 | |||
LIABILITIES AND EQUITY (DEFICIT) | |||||||
CURRENT LIABILITIES | |||||||
Accounts payable | |||||||
Trade | $ | 15,423 | $ | 9,005 | |||
Affiliate | 8,578 | 7,089 | |||||
Deferred revenue - affiliate | 2,088 | 2,027 | |||||
Accrued interest and financing costs | 5,248 | 6,116 | |||||
Other current liabilities | 16,528 | 3,095 | |||||
Total Current Liabilities | 47,865 | 27,332 | |||||
OTHER NONCURRENT LIABILITIES | 5,394 | 47 | |||||
DEBT | 902,556 | 353,922 | |||||
COMMITMENTS AND CONTINGENCIES (NOTE H) | |||||||
EQUITY (DEFICIT) | |||||||
Common unitholders; 31,722,352 units issued and outstanding (20,495,254 in 2012) | 405,692 | 153,037 | |||||
Subordinated unitholders; 15,254,890 units issued and outstanding (15,254,890 in 2012) | (152,313 | ) | (144,162 | ) | |||
General partner; 958,587 units issued and outstanding (729,596 in 2012) | (21,304 | ) | (26,998 | ) | |||
Total Equity (Deficit) | 232,075 | (18,123 | ) | ||||
Total Liabilities and Equity (Deficit) | $ | 1,187,890 | $ | 363,178 |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES: | (Dollars in thousands) | ||||||
Net income | $ | 37,851 | $ | 23,270 | |||
Adjustments to reconcile net income to net cash from (used in) operating activities: | |||||||
Depreciation and amortization expenses | 10,419 | 5,690 | |||||
Amortization of debt issuance costs | 822 | 384 | |||||
Unit-based compensation expense | 934 | 712 | |||||
Loss on asset disposals | 164 | 236 | |||||
Changes in current assets: | |||||||
Receivables - trade | (1,706 | ) | 47 | ||||
Receivables - affiliate | (6,315 | ) | (311 | ) | |||
Prepayments and other | (386 | ) | (829 | ) | |||
Changes in current liabilities: | |||||||
Accounts payable - trade | 1,210 | 228 | |||||
Accounts payable - affiliate | 1,421 | 696 | |||||
Deferred revenue - affiliate | 61 | 173 | |||||
Other current liabilities | 125 | 101 | |||||
Changes in other noncurrent assets and liabilities | 646 | 1,464 | |||||
Net cash from operating activities | 45,246 | 31,861 | |||||
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: | |||||||
Capital expenditures | (26,347 | ) | (32,499 | ) | |||
Capital expenditure reimbursements by affiliate | 320 | 4,204 | |||||
Acquisitions | (314,757 | ) | — | ||||
Net cash used in investing activities | (340,784 | ) | (28,295 | ) | |||
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: | |||||||
Proceeds from issuance of common units, net of issuance costs | 391,348 | — | |||||
Proceeds from issuance of general partner units, net of issuance costs | 8,319 | — | |||||
Quarterly distributions to unitholders | (43,838 | ) | (22,665 | ) | |||
Quarterly distributions to general partner | (3,066 | ) | (462 | ) | |||
Distributions in connection with acquisitions | (544,000 | ) | (67,500 | ) | |||
Borrowings under revolving credit agreement | 544,000 | 68,000 | |||||
Payments on capital lease | (162 | ) | — | ||||
Financing costs | (3,294 | ) | (593 | ) | |||
Capital contributions by affiliate | 2,778 | 1,119 | |||||
Sponsor contributions of equity to the Predecessors | — | 21,617 | |||||
Net cash from (used in) financing activities | 352,085 | (484 | ) | ||||
INCREASE IN CASH AND CASH EQUIVALENTS | 56,547 | 3,082 | |||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 19,290 | 18,326 | |||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 75,837 | $ | 21,408 |
• | the short term duration of the instruments (none of our trade payables or trade receivables have been outstanding for greater than 90 days); and |
• | the expected future insignificance of bad debt expense, which includes an evaluation of counterparty credit risk. |
Prepayments and other | $ | 208 | |
Property, plant and equipment | 400,000 | ||
Capital lease obligation | (1,185 | ) | |
Preliminary value of Carson Terminal Assets | $ | 399,023 |
Prepayments and other | $ | 53 | |
Property, plant and equipment | 358,362 | ||
Goodwill | 8,738 | ||
Other noncurrent assets | 4,500 | ||
Other current liabilities | (12,196 | ) | |
Noncurrent liabilities | (4,700 | ) | |
Preliminary purchase price | $ | 354,757 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(Dollars in thousands, except per unit amounts) | |||||||||||||||
Revenues | $ | 69,960 | $ | 49,240 | $ | 133,236 | $ | 89,518 | |||||||
Net income | 20,486 | 18,145 | 42,010 | 28,502 | |||||||||||
Net income attributable to partners | 20,486 | 16,004 | 42,010 | 29,873 | |||||||||||
Net income per limited partner unit: | |||||||||||||||
Common - basic and diluted | $ | 0.41 | $ | 0.44 | $ | 0.84 | $ | 0.78 | |||||||
Subordinated - basic and diluted | $ | 0.39 | $ | 0.28 | $ | 0.83 | $ | 0.62 |
• | historical revenues and direct operating expenses for the Northwest Products System; |
• | the indemnification of remediation efforts in response to the Diesel Pipeline Release; see Note H for additional discussion on the Diesel Pipeline Release; |
• | depreciation expense based on the acquisition date fair value of the Northwest Products System; and |
• | the impact of units issued in the January Offering to the weighted average units outstanding. |
Six Months Ended June 30, 2013 | |||
Carson Terminal Assets: | |||
Total operating revenues | $ | 7,180 | |
Net income attributable to partners | 2,783 | ||
Costs associated with the acquisition (a) | 1,267 | ||
Northwest Products System: | |||
Total operating revenues | 1,715 | ||
Net income attributable to partners | 449 | ||
Costs associated with the acquisition (a) | 2,730 |
(a) | Costs associated with the acquisitions, including costs to integrate the business, are included in the general and administrative expenses of TLLP in our condensed statements of combined consolidated operations. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Revenues | $ | 54,102 | $ | 32,458 | $ | 101,994 | $ | 58,811 | |||||||
Operating and maintenance expenses (a) | 5,087 | 3,883 | 8,525 | 8,413 | |||||||||||
General and administrative expenses | 3,800 | 3,071 | 6,626 | 5,829 |
(a) | Operating and maintenance expenses include imbalance settlement gains of $2.6 million and $2.5 million for the three months ended June 30, 2013 and 2012, respectively, and $5.0 million for the six months ended June 30, 2013 and 2012. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net income attributable to partners | $ | 19,173 | $ | 13,085 | $ | 37,851 | $ | 24,641 | |||||||
General partner's distributions (including IDRs) (a) | (2,149 | ) | (363 | ) | (3,815 | ) | (599 | ) | |||||||
Limited partners' distributions on common units | (16,179 | ) | (6,343 | ) | (31,014 | ) | (12,178 | ) | |||||||
Limited partner's distributions on subordinated units | (7,780 | ) | (6,254 | ) | (15,255 | ) | (12,013 | ) | |||||||
Distributions less than (greater than) earnings | $ | (6,935 | ) | $ | 125 | $ | (12,233 | ) | $ | (149 | ) | ||||
General partner's earnings: | |||||||||||||||
Distributions (including IDRs) (a) | $ | 2,149 | $ | 363 | $ | 3,815 | $ | 599 | |||||||
Allocation of distributions less than (greater than) earnings | (139 | ) | 3 | (245 | ) | (3 | ) | ||||||||
Total general partner's earnings | $ | 2,010 | $ | 366 | $ | 3,570 | $ | 596 | |||||||
Limited partners' earnings on common units: | |||||||||||||||
Distributions | $ | 16,179 | $ | 6,343 | $ | 31,014 | $ | 12,178 | |||||||
Allocation of distributions less than (greater than) earnings | (4,543 | ) | 61 | (7,930 | ) | (73 | ) | ||||||||
Total limited partners' earnings on common units | $ | 11,636 | $ | 6,404 | $ | 23,084 | $ | 12,105 | |||||||
Limited partner's earnings on subordinated units: | |||||||||||||||
Distributions | $ | 7,780 | $ | 6,254 | $ | 15,255 | $ | 12,013 | |||||||
Allocation of distributions less than (greater than) earnings | (2,253 | ) | 61 | (4,058 | ) | (73 | ) | ||||||||
Total limited partner's earnings on subordinated units | $ | 5,527 | $ | 6,315 | $ | 11,197 | $ | 11,940 | |||||||
Weighted average limited partner units outstanding: | |||||||||||||||
Common units - basic | 30,752,989 | 15,464,686 | 29,812,337 | 15,359,788 | |||||||||||
Common unit equivalents | 110,149 | 24,322 | 91,443 | 33,228 | |||||||||||
Common units - diluted | 30,863,138 | 15,489,008 | 29,903,780 | 15,393,016 | |||||||||||
Subordinated units - basic and diluted | 15,254,890 | 15,254,890 | 15,254,890 | 15,254,890 | |||||||||||
Net income per limited partner unit (b): | |||||||||||||||
Common - basic and diluted | $ | 0.38 | $ | 0.41 | $ | 0.77 | $ | 0.79 | |||||||
Subordinated - basic and diluted | $ | 0.36 | $ | 0.41 | $ | 0.73 | $ | 0.78 |
(a) | General partner's distributions (including IDRs) consist of an approximate 2% general partner interest and IDRs, which entitle the general partner to receive increasing percentages, up to 50%, of quarterly distributions in excess of $0.388125 per unit per quarter. See the Annual Report on Form 10-K for the year ended December 31, 2012 for further discussion related to IDRs. |
(b) | We base our calculation of net income per unit, including the allocation of distributions greater than earnings, on the weighted-average number of common and subordinated limited partner units outstanding during the period. Therefore, as a result of the January Offering and common units issued to Tesoro in the Carson Terminal Assets Acquisition, net income per common and subordinated limited partner units will not agree. |
June 30, 2013 | December 31, 2012 | ||||||
Crude Oil Gathering | $ | 139,463 | $ | 116,744 | |||
Terminalling, Transportation and Storage | 1,016,203 | 254,381 | |||||
Gross Property, Plant and Equipment | 1,155,666 | 371,125 | |||||
Accumulated depreciation | (102,493 | ) | (96,753 | ) | |||
Net Property, Plant and Equipment | $ | 1,053,173 | $ | 274,372 |
Debt, including current maturities: | June 30, 2013 | December 31, 2012 | |||||
Revolving Credit Facility | $ | 544,000 | $ | — | |||
5.875% TLLP Senior Notes due 2020 | 350,000 | 350,000 | |||||
Capital lease obligations | 8,870 | 4,032 | |||||
Total Debt | 902,870 | 354,032 | |||||
Current maturities | (314 | ) | (110 | ) | |||
Debt, less current maturities | $ | 902,556 | $ | 353,922 |
Credit Facility | 30 day Eurodollar (LIBOR) Rate | Eurodollar Margin | Base Rate | Base Rate Margin | Commitment Fee (unused portion) | |||||
TLLP Revolving Credit Facility (a) | 0.19% | 2.00% | 3.25% | 1.00% | 0.375% |
Common | Subordinated | General Partner | Total | ||||||||
Balance at December 31, 2012 | 20,495,254 | 15,254,890 | 729,596 | 36,479,740 | |||||||
Equity offering (a) | 9,775,000 | — | 199,490 | 9,974,490 | |||||||
Unit-based compensation awards (b) | 6,537 | — | — | 6,537 | |||||||
Units issued for the Carson Terminal Assets Acquisition | 1,445,561 | — | 29,501 | 1,475,062 | |||||||
Balance at June 30, 2013 | 31,722,352 | 15,254,890 | 958,587 | 47,935,829 |
Partnership | |||||||||||||||
Common | Subordinated | General Partner | Total | ||||||||||||
Balance at December 31, 2012 | $ | 153,037 | $ | (144,162 | ) | $ | (26,998 | ) | $ | (18,123 | ) | ||||
Allocation of net assets acquired by the unitholders | 391,043 | — | 7,980 | 399,023 | |||||||||||
Equity offering, net of issuance costs | 397,169 | (5,268 | ) | 7,998 | 399,899 | ||||||||||
Quarterly distributions | (29,155 | ) | (14,683 | ) | (3,066 | ) | (46,904 | ) | |||||||
Distributions to unitholders and general partner related to acquisitions | (533,120 | ) | — | (10,880 | ) | (544,000 | ) | ||||||||
Net income attributable to partners | 22,732 | 11,605 | 3,514 | 37,851 | |||||||||||
Other | 3,986 | 195 | 148 | 4,329 | |||||||||||
Balance at June 30, 2013 | $ | 405,692 | $ | (152,313 | ) | $ | (21,304 | ) | $ | 232,075 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net income attributable to partners | $ | 19,173 | $ | 13,085 | $ | 37,851 | $ | 24,641 | |||||||
General partner's IDRs | (1,627 | ) | (103 | ) | (2,813 | ) | (103 | ) | |||||||
Net income available to partners | $ | 17,546 | $ | 12,982 | $ | 35,038 | $ | 24,538 | |||||||
General partner's ownership interest | 2.0 | % | 2.0 | % | 2.0 | % | 2.0 | % | |||||||
General partner's allocated interest in net income | $ | 351 | $ | 261 | $ | 701 | $ | 491 | |||||||
General partner's IDRs | 1,627 | 103 | 2,813 | 103 | |||||||||||
Total general partner's interest in net income | $ | 1,978 | $ | 364 | $ | 3,514 | $ | 594 |
Quarter Ended | Total Quarterly Distribution Per Unit | Total Cash Distribution including general partner IDRs (in thousands) | Date of Distribution | Unitholders Record Date | ||||||||
December 31, 2012 | $ | 0.4725 | $ | 22,911 | February 14, 2013 | February 4, 2013 | ||||||
March 31, 2013 | 0.49 | 23,976 | May 14, 2013 | May 3, 2013 | ||||||||
June 30, 2013 (c) | 0.51 | 26,108 | August 14, 2013 | August 2, 2013 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
General partner's distributions: | |||||||||||||||
General partner's distributions | $ | 522 | $ | 260 | $ | 1,002 | $ | 496 | |||||||
General partner's IDRs | 1,627 | 103 | 2,813 | 103 | |||||||||||
Total general partner's distributions | 2,149 | 363 | 3,815 | 599 | |||||||||||
Limited partners' distributions: | |||||||||||||||
Common | 16,179 | 6,343 | 31,014 | 12,178 | |||||||||||
Subordinated | 7,780 | 6,254 | 15,255 | 12,013 | |||||||||||
Total limited partners' distributions | 23,959 | 12,597 | 46,269 | 24,191 | |||||||||||
Total Cash Distributions | $ | 26,108 | $ | 12,960 | $ | 50,084 | $ | 24,790 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Performance phantom units | $ | 440 | $ | 273 | $ | 841 | $ | 622 | |||||||
Service phantom units | 52 | 61 | 93 | 90 | |||||||||||
Total Unit-Based Compensation Expense | $ | 492 | $ | 334 | $ | 934 | $ | 712 |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
Assets received for deposit paid in prior period | $ | 40,000 | $ | — | |||
Capital expenditures included in accounts payable | 11,157 | 21,086 | |||||
Capital lease obligations | 5,026 | — | |||||
Receivable from affiliate for capital expenditures | 1,120 | — | |||||
Working capital requirements retained by Sponsor | — | 4,196 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Capital Expenditures | |||||||||||||||
Crude Oil Gathering | $ | 14,924 | $ | 6,328 | $ | 18,869 | $ | 8,949 | |||||||
Terminalling, Transportation and Storage | 7,319 | 30,251 | 13,610 | 40,612 | |||||||||||
Total Capital Expenditures | $ | 22,243 | $ | 36,579 | $ | 32,479 | $ | 49,561 |
Identifiable Assets | June 30, 2013 | December 31, 2012 | |||||
Crude Oil Gathering | $ | 106,221 | $ | 87,194 | |||
Terminalling, Transportation and Storage | 990,743 | 205,246 | |||||
Other | 90,926 | 70,738 | |||||
Total Identifiable Assets | $ | 1,187,890 | $ | 363,178 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
REVENUES | |||||||||||||||
Crude Oil Gathering: | |||||||||||||||
Affiliate | $ | 20,529 | $ | 15,959 | $ | 41,906 | $ | 29,938 | |||||||
Third-party | 416 | 114 | 730 | 237 | |||||||||||
Total Crude Oil Gathering | 20,945 | 16,073 | 42,636 | 30,175 | |||||||||||
Terminalling, Transportation and Storage: | |||||||||||||||
Affiliate (a) | 33,573 | 16,499 | 60,088 | 28,873 | |||||||||||
Third-party | 5,357 | 4,313 | 8,773 | 6,100 | |||||||||||
Total Terminalling, Transportation and Storage | 38,930 | 20,812 | 68,861 | 34,973 | |||||||||||
Total Segment Revenues | $ | 59,875 | $ | 36,885 | $ | 111,497 | $ | 65,148 | |||||||
OPERATING AND MAINTENANCE EXPENSES | |||||||||||||||
Crude Oil Gathering | $ | 12,995 | $ | 10,055 | $ | 25,355 | $ | 18,178 | |||||||
Terminalling, Transportation and Storage | 11,240 | 6,511 | 18,369 | 13,964 | |||||||||||
Total Segment Operating and Maintenance Expenses | $ | 24,235 | $ | 16,566 | $ | 43,724 | $ | 32,142 | |||||||
IMBALANCE SETTLEMENT GAINS | |||||||||||||||
Crude Oil Gathering | $ | (1,528 | ) | $ | (1,217 | ) | $ | (2,924 | ) | $ | (2,496 | ) | |||
Terminalling, Transportation and Storage | (1,048 | ) | (1,340 | ) | (2,076 | ) | (2,551 | ) | |||||||
Total Segment Imbalance Settlement Gains | $ | (2,576 | ) | $ | (2,557 | ) | $ | (5,000 | ) | $ | (5,047 | ) | |||
DEPRECIATION AND AMORTIZATION EXPENSES | |||||||||||||||
Crude Oil Gathering | $ | 1,029 | $ | 783 | $ | 2,035 | $ | 1,566 | |||||||
Terminalling, Transportation and Storage | 5,309 | 2,096 | 8,384 | 4,124 | |||||||||||
Total Segment Depreciation and Amortization Expenses | $ | 6,338 | $ | 2,879 | $ | 10,419 | $ | 5,690 | |||||||
GENERAL AND ADMINISTRATIVE EXPENSES | |||||||||||||||
Crude Oil Gathering | $ | 761 | $ | 607 | $ | 1,455 | $ | 1,318 | |||||||
Terminalling, Transportation and Storage | 1,739 | 660 | 2,781 | 1,365 | |||||||||||
Total Segment General and Administrative Expenses | $ | 2,500 | $ | 1,267 | $ | 4,236 | $ | 2,683 | |||||||
LOSS ON ASSET DISPOSALS | |||||||||||||||
Crude Oil Gathering | $ | — | $ | — | $ | — | $ | — | |||||||
Terminalling, Transportation and Storage | — | — | 164 | 236 | |||||||||||
Total Segment Loss on Asset Disposals | $ | — | $ | — | $ | 164 | $ | 236 | |||||||
OPERATING INCOME | |||||||||||||||
Crude Oil Gathering | $ | 7,688 | $ | 5,845 | $ | 16,715 | $ | 11,609 | |||||||
Terminalling, Transportation and Storage | 21,690 | 12,885 | 41,239 | 17,835 | |||||||||||
Total Segment Operating Income | 29,378 | 18,730 | 57,954 | 29,444 | |||||||||||
Unallocated general and administrative expenses | (4,104 | ) | (2,465 | ) | (8,421 | ) | (4,624 | ) | |||||||
Interest and financing costs, net | (6,571 | ) | (1,039 | ) | (12,175 | ) | (1,550 | ) | |||||||
Interest income | 470 | — | 493 | — | |||||||||||
NET INCOME | $ | 19,173 | $ | 15,226 | $ | 37,851 | $ | 23,270 |
(a) | Our Predecessors did not record revenue for transactions with Tesoro in the Terminalling, Transportation and Storage segment for assets acquired in the Acquisitions from Tesoro prior to the effective date of each acquisition. |
• | focus on opportunities to provide committed fee-based logistics services to Tesoro and third parties; |
• | evaluate investment opportunities that may arise from the growth of Tesoro's refining and marketing business or from increased third-party activity to make capital investments to expand our existing asset base; |
• | pursue accretive acquisitions of complementary assets from Tesoro as well as third parties; and |
• | seek to enhance the profitability of our existing assets by pursuing opportunities to add Tesoro and third-party volumes, improve operating efficiencies and increase utilization. |
• | completed the Carson Terminal Assets Acquisition, effective June 1, 2013, which delivered an average of approximately 145,000 bpd through the terminals in 2012 and has added approximately 6.4 million barrels of total storage capacity; |
• | completed the Northwest Products System Acquisition, effective June 19, 2013, which delivered an average of approximately 55,000 bpd through the terminals in 2012 and is expected to add transportation throughput capacity of approximately 85,000 bpd and total storage capacity of 1.3 million barrels; |
• | increased our terminal volumes by expanding capacity at our Vancouver and Stockton terminals; and |
• | reversed a segment of our High Plains pipeline to allow for the optimization of the pipeline's capacity to meet shipper demand to transport crude oil from areas of increasing production to new outlets. |
• | expand our assets on the High Plains System in support of growing third-party demand for transportation services and Tesoro's increased demand for Bakken crude oil in the mid-continent and west coast refining systems, including: |
◦ | expanding our proprietary truck fleet, which should generate cost and operating efficiencies; |
◦ | increasing tank capacity to provide new storage services to shippers; |
◦ | adding other origin and destination points on the High Plains System to increase volumes; and |
◦ | expanding capacity on the recently reversed segment of our High Plains pipeline. |
• | increase our terminalling volumes by expanding capacity and growing our third-party services at certain of our terminals; |
• | optimize Tesoro volumes and grow third-party volumes at our recently acquired Carson Terminal Assets; |
• | complete the construction of a waxy crude oil unloading facility in Salt Lake City; and |
• | complete additional acquisitions of assets included in the integrated logistics system Tesoro acquired from BP on June 1, 2013. The remaining integrated logistics system assets include 2 marine terminals and over 100 miles of pipelines, and Tesoro has indicated that it intends to offer us these assets in multiple transactions during the first twelve months following their acquisition on June 1, 2013. Although Tesoro has indicated it will offer us these assets, it is not obligated to do so, and we are not obligated to purchase the assets. |
• | our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or financing methods; |
• | the ability of our assets to generate sufficient cash flow to make distributions to our unitholders; |
• | our ability to incur and service debt and fund capital expenditures; and |
• | the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
REVENUES | (including Predecessors) | (including Predecessors) | |||||||||||||
Crude Oil Gathering | $ | 20,945 | $ | 16,073 | $ | 42,636 | $ | 30,175 | |||||||
Terminalling, Transportation and Storage (a) | 38,930 | 20,812 | 68,861 | 34,973 | |||||||||||
Total Revenues | 59,875 | 36,885 | 111,497 | 65,148 | |||||||||||
COSTS AND EXPENSES | |||||||||||||||
Operating and maintenance expenses (b) | 21,659 | 14,009 | 38,724 | 27,095 | |||||||||||
Depreciation and amortization expenses | 6,338 | 2,879 | 10,419 | 5,690 | |||||||||||
General and administrative expenses | 6,604 | 3,732 | 12,657 | 7,307 | |||||||||||
Loss on asset disposals | — | — | 164 | 236 | |||||||||||
Total Costs and Expenses | 34,601 | 20,620 | 61,964 | 40,328 | |||||||||||
OPERATING INCOME | 25,274 | 16,265 | 49,533 | 24,820 | |||||||||||
Interest and financing costs, net | (6,571 | ) | (1,039 | ) | (12,175 | ) | (1,550 | ) | |||||||
Interest income | 470 | — | 493 | — | |||||||||||
NET INCOME | 19,173 | 15,226 | 37,851 | 23,270 | |||||||||||
Loss (income) attributable to Predecessors | — | (2,141 | ) | — | 1,371 | ||||||||||
Net income attributable to partners | 19,173 | 13,085 | 37,851 | 24,641 | |||||||||||
General partner's interest in net income, including incentive distribution rights | (1,978 | ) | (364 | ) | (3,514 | ) | (594 | ) | |||||||
Limited partners' interest in net income | $ | 17,195 | $ | 12,721 | $ | 34,337 | $ | 24,047 | |||||||
Net income per limited partner unit: | |||||||||||||||
Common - basic and diluted | $ | 0.38 | $ | 0.41 | $ | 0.77 | $ | 0.79 | |||||||
Subordinated - basic and diluted | $ | 0.36 | $ | 0.41 | $ | 0.73 | $ | 0.78 | |||||||
Weighted average limited partner units outstanding: | |||||||||||||||
Common units - basic | 30,752,989 | 15,464,686 | 29,812,337 | 15,359,788 | |||||||||||
Common units - diluted | 30,863,138 | 15,489,008 | 29,903,780 | 15,393,016 | |||||||||||
Subordinated units - basic and diluted | 15,254,890 | 15,254,890 | 15,254,890 | 15,254,890 | |||||||||||
EBITDA (c) | $ | 31,612 | $ | 19,144 | $ | 59,952 | $ | 30,510 | |||||||
Distributable Cash Flow (c) | $ | 24,903 | $ | 17,548 | $ | 47,925 | $ | 27,953 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Reconciliation of EBITDA and Distributable Cash Flow to Net Income: | (including Predecessors) | (including Predecessors) | |||||||||||||
Net income | $ | 19,173 | $ | 15,226 | $ | 37,851 | $ | 23,270 | |||||||
Depreciation and amortization expenses | 6,338 | 2,879 | 10,419 | 5,690 | |||||||||||
Interest and financing costs, net | 6,571 | 1,039 | 12,175 | 1,550 | |||||||||||
Interest income | (470 | ) | — | (493 | ) | — | |||||||||
EBITDA (c) | $ | 31,612 | $ | 19,144 | $ | 59,952 | $ | 30,510 | |||||||
Maintenance capital expenditures (d) | (4,246 | ) | (1,690 | ) | (6,142 | ) | (2,754 | ) | |||||||
Interest and financing costs, net | (6,571 | ) | (1,039 | ) | (12,175 | ) | (1,550 | ) | |||||||
Reimbursement for maintenance capital expenditures (d) | 2,404 | 532 | 3,587 | 532 | |||||||||||
Non-cash unit-based compensation expense | 488 | 334 | 918 | 712 | |||||||||||
Loss on asset disposals | — | — | 164 | 236 | |||||||||||
Change in deferred revenue related to shortfall payments | 585 | 267 | 484 | 267 | |||||||||||
Change in other deferred revenue | 161 | — | 644 | — | |||||||||||
Interest income | 470 | — | 493 | — | |||||||||||
Distributable Cash Flow (c) (e) | $ | 24,903 | $ | 17,548 | $ | 47,925 | $ | 27,953 | |||||||
Reconciliation of EBITDA to Net Cash from Operating Activities: | |||||||||||||||
Net cash from operating activities | $ | 15,541 | $ | 17,280 | $ | 45,246 | $ | 31,861 | |||||||
Changes in assets and liabilities | 10,868 | 1,384 | 4,944 | (1,569 | ) | ||||||||||
Amortization of debt issuance costs | (406 | ) | (225 | ) | (822 | ) | (384 | ) | |||||||
Unit-based compensation expense | (492 | ) | (334 | ) | (934 | ) | (712 | ) | |||||||
Loss on asset disposals | — | — | (164 | ) | (236 | ) | |||||||||
Interest income | (470 | ) | — | (493 | ) | — | |||||||||
Interest and financing costs, net | 6,571 | 1,039 | 12,175 | 1,550 | |||||||||||
EBITDA (c) | $ | 31,612 | $ | 19,144 | $ | 59,952 | $ | 30,510 |
(a) | Our Predecessors did not record revenue for transactions with Tesoro in the Terminalling, Transportation and Storage segment for assets acquired in the Acquisitions from Tesoro prior to the effective date of each acquisition. |
(b) | Operating and maintenance expenses include imbalance settlement gains of $2.6 million and $2.5 million in the three months ended June 30, 2013 and 2012, respectively, and $5.0 million in the six months ended June 30, 2013 and 2012. |
(c) | For a definition of EBITDA and distributable cash flow, see "Non-GAAP Financial Measures." |
(d) | Maintenance capital expenditures include expenditures required to maintain equipment, ensure the reliability, integrity and safety of our tankage and pipelines and address environmental regulations. |
• | an increase in operating and maintenance expenses of $7.7 million, or 55%, mainly related to higher contract trucking expenses and increased labor and operating costs associated with operations at the Carson Terminal Assets and Anacortes Rail Facility; |
• | an increase in general and administrative expenses of $2.9 million, or 77%, primarily related to $1.8 million of costs related to the Northwest Products System Acquisition and the Carson Terminal Assets Acquisition, including costs to integrate the businesses; and |
• | an increase in net interest and financing costs of $5.5 million related to the 5.875% Senior Notes issued in September 2012 ("Senior Notes due 2020") and borrowings on the Revolving Credit Facility to fund the Carson Terminal Assets Acquisition. |
• | an increase in operating and maintenance expenses of $11.6 million, or 43%, mainly related to higher contract trucking expenses and increased costs associated with operations at the Carson Terminal Assets and Anacortes Rail Facility; |
• | an increase in general and administrative expenses of $5.4 million, or 73%, primarily related to $4.0 million of costs related to the Northwest Products System Acquisition and the Carson Terminal Assets Acquisition, including costs to integrate the businesses; and |
• | an increase in net interest and financing costs of $10.6 million related to the Senior Notes due 2020 and borrowings on the Revolving Credit Facility to fund the Carson Terminal Assets Acquisition. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
REVENUES | |||||||||||||||
Pipeline revenues | $ | 9,048 | $ | 7,217 | $ | 18,489 | $ | 14,629 | |||||||
Trucking revenues | 11,897 | 8,856 | 24,147 | 15,546 | |||||||||||
Total Revenues | 20,945 | 16,073 | 42,636 | 30,175 | |||||||||||
COSTS AND EXPENSES | |||||||||||||||
Operating and maintenance expenses (a) | 11,467 | 8,838 | 22,431 | 15,682 | |||||||||||
Depreciation and amortization expenses | 1,029 | 783 | 2,035 | 1,566 | |||||||||||
General and administrative expenses | 761 | 607 | 1,455 | 1,318 | |||||||||||
Total Costs and Expenses | 13,257 | 10,228 | 25,921 | 18,566 | |||||||||||
CRUDE OIL GATHERING SEGMENT OPERATING INCOME | $ | 7,688 | $ | 5,845 | $ | 16,715 | $ | 11,609 | |||||||
VOLUMES (bpd) | |||||||||||||||
Pipeline throughput (b) | 80,543 | 59,960 | 81,445 | 59,852 | |||||||||||
Average pipeline revenue per barrel (c) | $ | 1.23 | $ | 1.32 | $ | 1.25 | $ | 1.34 | |||||||
Trucking volume | 42,084 | 35,336 | 43,497 | 30,350 | |||||||||||
Average trucking revenue per barrel (c) | $ | 3.11 | $ | 2.75 | $ | 3.07 | $ | 2.81 |
(a) | Operating and maintenance expenses include imbalance settlement gains of $1.5 million and $1.2 million for the three months ended June 30, 2013 and 2012, respectively, and $2.9 million and $2.5 million in the six months ended June 30, 2013 and 2012, respectively. |
(b) | Also includes barrels that were gathered and then delivered into our High Plains System by truck. |
(c) | Management uses average revenue per barrel to evaluate performance and compare profitability to other companies in the industry. There are a variety of ways to calculate average revenue per barrel; different companies may calculate it in different ways. We calculate average revenue per barrel as revenue divided by the number of days in the period divided by throughput (bpd). Investors and analysts use this financial measure to help analyze and compare companies in the industry on the basis of operating performance. This financial measure should not be considered as an alternative to segment operating income, revenues and operating expenses or any other measure of financial performance presented in accordance with U.S. GAAP. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
REVENUES (a) | (including Predecessors) | (including Predecessors) | |||||||||||||
Terminalling revenues | $ | 32,879 | $ | 17,703 | $ | 59,422 | $ | 28,917 | |||||||
Pipeline transportation revenues | 2,834 | 1,770 | 4,841 | 3,378 | |||||||||||
Storage revenues | 3,217 | 1,339 | 4,598 | 2,678 | |||||||||||
Total Revenues | 38,930 | 20,812 | 68,861 | 34,973 | |||||||||||
COSTS AND EXPENSES | |||||||||||||||
Operating and maintenance expenses (b) | 10,192 | 5,171 | 16,293 | 11,413 | |||||||||||
Depreciation and amortization expenses | 5,309 | 2,096 | 8,384 | 4,124 | |||||||||||
General and administrative expenses | 1,739 | 660 | 2,781 | 1,365 | |||||||||||
Loss on asset disposals | — | — | 164 | 236 | |||||||||||
Total Costs and Expenses | 17,240 | 7,927 | 27,622 | 17,138 | |||||||||||
TERMINALLING, TRANSPORTATION AND STORAGE SEGMENT OPERATING INCOME | $ | 21,690 | $ | 12,885 | $ | 41,239 | $ | 17,835 | |||||||
VOLUMES (bpd) | |||||||||||||||
Terminalling throughput | 429,880 | 357,061 | 410,818 | 307,174 | |||||||||||
Average terminalling revenue per barrel (a) (c) | $ | 0.84 | $ | 0.54 | $ | 0.80 | $ | 0.52 | |||||||
Pipeline transportation throughput | 85,476 | 95,451 | 88,005 | 93,053 | |||||||||||
Average pipeline transportation revenue per barrel (a) (c) | $ | 0.36 | $ | 0.20 | $ | 0.30 | $ | 0.20 | |||||||
Storage capacity reserved (shell capacity barrels) | 1,511,000 | 878,000 | 1,196,000 | 878,000 | |||||||||||
Storage revenue per barrel on shell capacity (per month) (c) | $ | 0.71 | $ | 0.51 | $ | 0.64 | $ | 0.51 |
(a) | Our Predecessors did not record revenue for transactions with Tesoro in the Terminalling, Transportation and Storage segment for assets acquired in the Acquisitions from Tesoro prior to the effective date of each acquisition. Volumes for all periods presented include both affiliate and third-party throughput. |
(b) | Operating and maintenance expenses include imbalance settlement gains of $1.1 million and $1.3 million for the three months ended June 30, 2013 and 2012, respectively, and $2.1 million and $2.5 million in the six months ended June 30, 2013 and 2012, respectively. |
(c) | Management uses average revenue per barrel and storage revenue per barrel on shell capacity to evaluate performance and compare profitability to other companies in the industry. There are a variety of ways to calculate average revenue per barrel; different companies may calculate it in different ways. We calculate average revenue per barrel as revenue divided by the number of days in the period divided by throughput (bpd). We calculate storage revenue per barrel on shell capacity as revenue divided by number of months in the period divided by shell capacity barrels. Investors and analysts use these financial measures to help analyze and compare companies in the industry on the basis of operating performance. These financial measures should not be considered as an alternative to segment operating income, revenues and operating expenses or any other measure of financial performance presented in accordance with U.S. GAAP. |
Quarter Ended | Total Quarterly Distribution Per Unit | Total Quarterly Distribution Per Unit, Annualized | Total Cash Distribution including general partner IDRs (in thousands) | Date of Distribution | Unitholders Record Date | |||||||||||
December 31, 2012 | $ | 0.4725 | $ | 1.89 | $ | 22,911 | February 14, 2013 | February 4, 2013 | ||||||||
March 31, 2013 | 0.49 | 1.96 | 23,976 | May 14, 2013 | May 3, 2013 | |||||||||||
June 30, 2013 (a) | 0.51 | 2.04 | 26,108 | August 14, 2013 | August 2, 2013 |
Debt, including current maturities: | June 30, 2013 | ||
Revolving Credit Facility | $ | 544,000 | |
5.875% TLLP Senior Notes due 2020 | 350,000 | ||
Capital lease obligations | 8,870 | ||
Total Debt | $ | 902,870 |
Credit Facility | 30 day Eurodollar (LIBOR) Rate | Eurodollar Margin | Base Rate | Base Rate Margin | Commitment Fee (unused portion) | |||||
TLLP Revolving Credit Facility (a) | 0.19% | 2.00% | 3.25% | 1.00% | 0.375% |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
Cash Flows From (Used In): | |||||||
Operating Activities | $ | 45,246 | $ | 31,861 | |||
Investing Activities | (340,784 | ) | (28,295 | ) | |||
Financing Activities (a) | 352,085 | (484 | ) | ||||
Increase in Cash and Cash Equivalents | $ | 56,547 | $ | 3,082 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Expansion | $ | 17,997 | $ | 34,889 | $ | 26,337 | $ | 46,807 | |||||||
Maintenance | 4,246 | 1,690 | 6,142 | 2,754 | |||||||||||
Total Capital Expenditures | $ | 22,243 | $ | 36,579 | $ | 32,479 | $ | 49,561 |
Three Months Ended June 30, 2012 Total Tesoro Logistics LP | ||||||||||||
Tesoro Logistics LP (Partnership) (a) | Predecessors | |||||||||||
Expansion | $ | 7,519 | $ | 27,370 | $ | 34,889 | ||||||
Maintenance | 1,184 | 506 | 1,690 | |||||||||
Total Capital Expenditures | $ | 8,703 | $ | 27,876 | $ | 36,579 |
Six Months Ended June 30, 2012 Total Tesoro Logistics LP | ||||||||||||
Tesoro Logistics LP (Partnership) (a) | Predecessors | |||||||||||
Expansion | $ | 11,148 | $ | 35,659 | $ | 46,807 | ||||||
Maintenance | 1,114 | 1,640 | 2,754 | |||||||||
Total Capital Expenditures | $ | 12,262 | $ | 37,299 | $ | 49,561 |
Project Category | Percent of 2013 Quarter Capital Expenditures | Percent of 2013 Period Capital Expenditures | Percent of 2013 Expected Capital Expenditures | ||
Expansion | 81% | 81% | 85% | ||
Maintenance | 19% | 19% | 15% |
Expansion Capital Expenditures 2013 Period | Expected Capital Expenditures for Remainder of 2013 | Expected In-service Date | |||||||
OPERATING SEGMENTS | |||||||||
CRUDE OIL GATHERING | |||||||||
High Plains reversal project (a) | $ | 0.2 | $ | 15.0 | 2014 | ||||
Various growth plan projects (b) | 17.2 | 40.0 | 2013-2014 | ||||||
CRUDE OIL GATHERING SEGMENT EXPANSION PROJECTS | $ | 17.4 | $ | 55.0 | |||||
TERMINALLING, TRANSPORTATION AND STORAGE | |||||||||
Stockton terminal expansion (c) | $ | 3.5 | $ | — | Complete | ||||
Terminal expansion projects (d) | 5.4 | 13.0 | 2013-2014 | ||||||
TERMINALLING, TRANSPORTATION AND STORAGE SEGMENT EXPANSION PROJECTS | 8.9 | 13.0 | |||||||
TOTAL EXPANSION PROJECTS | $ | 26.3 | $ | 68.0 |
(a) | The High Plains reversal project is expected to drive higher throughput on the pipeline by optimizing the pipeline's capacity to meet shipper demand to transport crude oil from areas of increasing production to new outlets. The project is expected to cost approximately $35.0 million and be completed in 2014. |
(b) | Includes various projects to expand our pipeline gathering system and increase our ability to store and deliver volumes to Tesoro's North Dakota refinery and to third-party destinations. |
(c) | The Stockton terminal expansion added storage capacity that will allow for an increase in volume delivered through the terminal for a total investment of approximately $11.5 million. The project was completed in the second quarter of 2013. |
(d) | The terminal expansion projects include approximately $17.5 million of capital in 2013 for projects to expand the throughput capacity and offer additional services at several of our terminals. |
• | the suspension, reduction or termination of Tesoro's obligation under our commercial agreements and our operational services agreement; |
• | changes in global economic conditions and the effects of the global economic downturn on Tesoro's business and the business of its suppliers, customers, business partners and credit lenders; |
• | changes in the expected spending related to the responsibility the Partnership assumed for performing testing and associated pipeline repairs pursuant to the Corrective Action Order in the Northwest Products System Acquisition; |
• | a material decrease in Tesoro's profitability; |
• | a material decrease in the crude oil produced in the Bakken Region; |
• | disruptions due to equipment interruption or failure at our facilities, Tesoro's facilities or third-party facilities on which Tesoro's business is dependent; |
• | changes in the expected benefits and timing of our transactions relating to our acquisitions from Tesoro and third parties including Chevron; |
• | changes in the expected benefits from the Carson Terminal Assets Acquisition or changes in the timing, value of assets and benefits from the anticipated offer from Tesoro Refining & Marketing Company LLC ("TRMC") to us of the remaining portion of the integrated logistics system that TRMC acquired as part of its acquisition of the Carson refining and marketing business; |
• | the risk of contract cancellation, non-renewal or failure to perform by Tesoro's customers, and Tesoro's inability to replace such contracts and/or customers; |
• | Tesoro's ability to remain in compliance with the terms of its outstanding indebtedness; |
• | the timing and extent of changes in commodity prices and demand for Tesoro's refined products; |
• | actions of customers and competitors; |
• | changes in our cash flow from operations; |
• | state and federal environmental, economic, health and safety, energy and other policies and regulations, including those related to climate change and any changes therein, and any legal or regulatory investigations, delays or other factors beyond our control; |
• | operational hazards inherent in refining operations and in transporting and storing crude oil and refined products; |
• | earthquakes or other natural disasters affecting operations; |
• | changes in capital requirements or in execution of planned capital projects; |
• | the availability and costs of crude oil, other refinery feedstocks and refined products; |
• | changes in the cost or availability of third-party vessels, pipelines and other means of delivering and transporting crude oil, feedstocks and refined products; |
• | direct or indirect effects on our business resulting from actual or threatened terrorist incidents or acts of war; |
• | weather conditions affecting our or Tesoro's operations or the areas in which Tesoro markets its refined products; |
• | seasonal variations in demand for refined products; |
• | adverse rulings, judgments, or settlements in litigation or other legal or tax matters, including unexpected environmental remediation costs in excess of any accruals, which affect us or Tesoro; |
• | risks related to labor relations and workplace safety; |
• | changes in insurance markets impacting costs and the level and types of coverage available; and |
• | political developments. |
Exhibit Number | Description of Exhibit | |
2.1 | Amendment to Northwest Products System - Terminal Interests Asset Sale and Purchase Agreement, dated as of March 28, 2013, by and between Tesoro Logistics Operations LLC and Northwest Terminalling Company (incorporated by reference herein to Exhibit 2.1 to the Partnership's Current Report on Form 8-K filed on April 1, 2013, File No. 1-35143). | |
2.2 | Amendment to Northwest Products Pipeline System Asset Sale and Purchase Agreement, dated as of March 28, 2013, by and between Tesoro Logistics Northwest Pipeline LLC and Chevron Pipe Line Company (incorporated by reference herein to Exhibit 2.2 to the Partnership's Current Report on Form 8-K filed on April 1, 2013, File No. 1-35143). | |
2.3 | Contribution, Conveyance and Assumption Agreement, dated as of May 17, 2013, among Tesoro Logistics LP, Tesoro Logistics GP, LLC, Tesoro Logistics Operations LLC, Tesoro Corporation and Tesoro Refining & Marketing Company LLC (incorporated by reference herein to Exhibit 2.1 to the Partnership's Current Report on Form 8-K filed on May 17, 2013, File No. 1-35143). | |
2.4 | Agreement Concerning Northwest Products System Asset Sale and Purchase Agreements among Chevron Pipe Line Company, Northwest Terminalling Company, Tesoro Logistics Northwest Pipeline LLC and Tesoro Logistics Operations LLC, dated as of May 17, 2013 (incorporated by reference herein to Exhibit 2.1 to the Partnership's Current Report on Form 8-K filed on May 20, 2013, File No. 1-35143). | |
3.1 | Amendment No. 4 to the Amended and Restated Limited Liability Company Agreement of Tesoro Logistics GP, LLC, dated as of June 1, 2013, between Tesoro Corporation and Tesoro Refining & Marketing Company LLC (incorporated by reference herein to Exhibit 3.1 to the Partnership's Current Report on Form 8-K filed on June 3, 2013, File No. 1-35143). | |
4.1 | Indenture, dated as of August 1, 2013, among Tesoro Logistics LP, Tesoro Logistics Finance Corp., the guarantors named therein and U.S. Bank National Association, as trustee (incorporated by reference herein to Exhibit 4.1 to the Partnership's Current Report on Form 8-K filed on August 2, 2013, File No. 1-35143). | |
4.2 | Registration Rights Agreement, dated as of August 1, 2013, among Tesoro Logistics LP, Tesoro Logistics Finance Corp., the guarantors named therein and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as representative of the several initial purchasers (incorporated by reference herein to Exhibit 4.2 to the Partnership's Current Report on Form 8-K filed on August 2, 2013, File No. 1-35143). | |
10.1 | Second Amended and Restated Trucking Transportation Services Agreement, dated as of March 26, 2013, among Tesoro Logistics Operations, LLC and Tesoro Refining & Marketing Company LLC (incorporated by reference herein to Exhibit 10.1 to the Partnership's Current Report on Form 8-K filed on April 1, 2013, File No. 1-35143). | |
Exhibit Number | Description of Exhibit | |
10.2 | Second Amended and Restated Master Terminalling Services Agreement, dated as of May 3, 2013, among Tesoro Refining and Marketing Company LLC, Tesoro Alaska Company and Tesoro Logistics Operations LLC (incorporated by reference herein to Exhibit 10.2 to the Partnership's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2013, File No. 1-35143). | |
10.3 | Amendment No. 1 to Credit Agreement, dated as of May 22, 2013, among Tesoro Logistics LP, Bank of America, N.A., as administrative agent, letter of credit issuer and lender, the other lenders party thereto, and the subsidiaries of Tesoro Logistics LP party thereto (incorporated by reference herein to Exhibit 10.1 to the Partnership's Current Report on Form 8-K filed on May 23, 2013, File No. 1-35143). | |
10.4 | Amendment No. 1 to the Second Amended and Restated Omnibus Agreement, dated as of June 1, 2013, among Tesoro Corporation, Tesoro Refining & Marketing Company LLC, Tesoro Companies, Inc., Tesoro Alaska Company, Tesoro Logistics LP, and Tesoro Logistics GP, LLC (incorporated by reference herein to Exhibit 10.1 to the Partnership's Current Report on Form 8-K filed on June 3, 2013, File No. 1-35143). | |
10.5 | Amended and Restated Schedules to the Second Amended and Restated Omnibus Agreement, dated as of June 1, 2013, among Tesoro Corporation, Tesoro Refining & Marketing Company LLC, Tesoro Companies, Inc., Tesoro Alaska Company, Tesoro Logistics LP, and Tesoro Logistics GP, LLC (incorporated by reference herein to Exhibit 10.2 to the Partnership's Current Report on Form 8-K filed on June 3, 2013, File No. 1-35143). | |
10.6 | Amendment and Restatement of Schedules to the Amended and Restated Operational Services Agreement, dated as of June 1, 2013, among Tesoro Companies, Inc., Tesoro Refining & Marketing Company LLC, Tesoro Alaska Company, Tesoro Logistics GP, LLC, Tesoro Logistics Operations LLC and Tesoro High Plains Pipeline Company LLC (incorporated by reference herein to Exhibit 10.3 to the Partnership's Current Report on Form 8-K filed on June 3, 2013, File No. 1-35143). | |
10.7 | Master Terminalling Services Agreement - Southern California, dated as of June 1, 2013, among Tesoro Logistics LP, Tesoro Logistics GP, LLC, Tesoro Refining & Marketing Company LLC and Tesoro Logistics Operations LLC (incorporated by reference herein to Exhibit 10.4 to the Partnership's Current Report on Form 8-K filed on June 3, 2013, File No. 1-35143). | |
10.8 | Carson Storage Services Agreement, dated as of June 1, 2013, among Tesoro Logistics LP, Tesoro Logistics GP, LLC, Tesoro Refining & Marketing Company LLC and Tesoro Logistics Operations LLC (incorporated by reference herein to Exhibit 10.5 to the Partnership's Current Report on Form 8-K filed on June 3, 2013, File No. 1-35143). | |
*10.9 | Tesoro Logistics LP Non-Employee Director Compensation Program. | |
*31.1 | Certification by Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
*31.2 | Certification by Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
*32.1 | Certification by Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
*32.2 | Certification by Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
**101.INS | XBRL Instance Document | |
**101.SCH | XBRL Taxonomy Extension Schema Document | |
**101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
**101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
**101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
**101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
* | Filed herewith |
** | Submitted electronically herewith |
TESORO LOGISTICS LP | |||
By: | Tesoro Logistics GP, LLC | ||
Its general partner | |||
Date: | August 7, 2013 | By: | /s/ GREGORY J. GOFF |
Gregory J. Goff | |||
Chairman of the Board of Directors and Chief Executive Officer | |||
Date: | August 7, 2013 | By: | /s/ G. SCOTT SPENDLOVE |
G. Scott Spendlove | |||
Director, Vice President and Chief Financial Officer |
Board of Directors Annual Retainer (b) | $ | 121,000 | |
Annual Retainer for Audit and Conflicts Committee Chairs | 15,000 | ||
Board and Committee Meeting Fees (c) | 1,500 per meeting |
(a) | In addition to the retainers set forth above, we reimburse our non-employee directors for travel and lodging expenses that they incur in connection with attending meetings of the board of directors or its committees. |
(b) | Beginning October 1, 2013, the annual retainer is payable $58,000 in cash and $63,000 in an award of service phantom units. Unit-based awards granted to non-employee directors under the annual compensation package or upon first election to the board of directors under our long-term incentive plan, vest one year from the date of grant, contingent on continued service by the director. Cash distribution equivalent rights accrue with respect to equity-based awards and are distributed at the time such awards vest. The number of units granted will be determined by dividing $63,000 by the average closing price of our common units on the NYSE over a ten business-day period ending on the third business day prior to the grant date and rounding any resulting fractional units to the nearest whole unit. The plan provides that unit-based awards to directors will be granted annually in conjunction with the Board's approval of our Annual Report on Form 10-K, and that any new non-employee director will receive a pro rata award of service phantom units when commencing his or her services as a board member. Because the unit-based awards are granted annually and the annual compensation was increased effective October 1, 2013, each of our non-employee directors will receive an incremental grant of units valued at $2000 (rounded up to the next whole unit) effective October 1, 2013 for the service during the fourth quarter of the calendar year. |
(c) | A meeting fee is paid to a non-employee director for attendance in person or by telephone. |
1. | I have reviewed this quarterly report on Form 10-Q of Tesoro Logistics LP; |
2. | Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this quarterly report based on such evaluation; and |
(d) | Disclosed in this quarterly report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | August 7, 2013 | /s/ GREGORY J. GOFF |
Gregory J. Goff | ||
Chief Executive Officer of Tesoro Logistics GP, LLC | ||
(the general partner of Tesoro Logistics LP) |
1. | I have reviewed this quarterly report on Form 10-Q of Tesoro Logistics LP; |
2. | Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this quarterly report based on such evaluation; and |
(d) | Disclosed in this quarterly report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | August 7, 2013 | /s/ G. SCOTT SPENDLOVE |
G. Scott Spendlove | ||
Chief Financial Officer of Tesoro Logistics GP, LLC | ||
(the general partner of Tesoro Logistics LP) |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership. |
/s/ GREGORY J. GOFF | |||
Gregory J. Goff | |||
Chief Executive Officer of Tesoro Logistics GP, LLC (the general partner of Tesoro Logistics LP) | |||
August 7, 2013 |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership. |
/s/ G. SCOTT SPENDLOVE | |||
G. Scott Spendlove | |||
Chief Financial Officer of Tesoro Logistics GP, LLC (the general partner of Tesoro Logistics LP) | |||
August 7, 2013 |
Segment Disclosures (Notes)
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Jun. 30, 2013
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Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Disclosures | SEGMENT DISCLOSURES Our revenues are derived from two operating segments: Crude Oil Gathering and Terminalling, Transportation and Storage. The recently acquired operations of the Carson Terminal Assets and the Northwest Products System are reported in our Terminalling, Transportation and Storage segment. Our Crude Oil Gathering segment consists of a crude oil gathering system in the Bakken Shale/Williston Basin area of North Dakota and Montana. Our Terminalling, Transportation and Storage segment consists of the Northwest Products Pipeline, a jet fuel pipeline to the Salt Lake City International Airport, 16 refined products and storage terminals in the Western and Midwestern U.S., 2 storage facilities in Southern California and Salt Lake City, Utah, 2 marine terminals in California, a rail-car unloading facility in Washington, and other pipelines which transport products and crude oil from Tesoro's refineries in Salt Lake City and Los Angeles to nearby facilities, including the Northwest Product Pipeline. Our revenues are generated from existing third-party contracts and from commercial agreements we have entered into with Tesoro under which Tesoro pays us fees for gathering crude oil and distributing, transporting and storing crude oil and refined products. The commercial agreements with Tesoro are described in Note C. We do not have any foreign operations. Our operating segments are strategic business units that offer different services in different geographical locations. We evaluate the performance of each segment based on its respective operating income. Certain general and administrative expenses and interest and financing costs are excluded from segment operating income as they are not directly attributable to a specific operating segment. Identifiable assets are those used by the segment, whereas other assets are principally cash, deposits and other assets that are not associated with a specific operating segment. Capital expenditures by operating segment were as follows (in thousands):
Identifiable assets by operating segment were as follows (in thousands):
Segment information is as follows (in thousands):
____________
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Condensed Consolidated Balance Sheets (Unaudited), (Parenthetical)
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Jun. 30, 2013
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Dec. 31, 2012
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EQUITY (DEFICIT) | ||
Common units issued (units) | 31,722,352 | 20,495,254 |
Subordinated units issued (units) | 15,254,890 | 15,254,890 |
General partner units issued (units) | 958,587 | 729,596 |
Common units outstanding (units) | 31,722,352 | 20,495,254 |
Subordinated units outstanding (units) | 15,254,890 | 15,254,890 |
General partner units outstanding (units) | 958,587 | 729,596 |
Property, Plant and Equipment (Notes)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, at cost, is as follows (in thousands):
See Note B for more information regarding the property, plant and equipment balances acquired in the Carson Terminal Assets Acquisition and the Northwest Products System Acquisition. |
Debt (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Long-term Debt, Unclassified [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of debt | Our total debt at June 30, 2013 and December 31, 2012 was comprised of the following (in thousands):
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Schedule of line of credit facilities | The Revolving Credit Facility, at June 30, 2013, was subject to the following expenses and fees:
____________ (a) We have the option to elect if the borrowings will bear interest at either a base rate plus the base rate margin, or a Eurodollar rate, for the applicable period, plus the Eurodollar margin at the time of the borrowing. The applicable margin varies based upon a certain leverage ratio, as defined by the Revolving Credit Facility. We also incur commitment fees for the unused portion of the Revolving Credit Facility at an annual rate. Letters of credit outstanding under the Revolving Credit Facility incur fees at the Eurodollar margin rate. |
Organization and Basis of Presentation (Policies)
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6 Months Ended |
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Jun. 30, 2013
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of accounting, policy | U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. |
Goodwill impairment testing, policy | Goodwill represents the amount the purchase price exceeds the fair value of net assets acquired in a business combination. We do not amortize goodwill. We are required, however, to review goodwill for impairment annually, or more frequently if events or changes in business circumstances indicate the book value of the assets may not be recoverable. In such circumstances, we record the impairment in loss on asset disposals and impairments in our statement of combined consolidated operations. We review the carrying value of goodwill for impairment on November 1st of each year, or sooner if events or changes in circumstances indicate the carrying amount of a reporting unit may exceed fair value. |
Major Customer and Concentrations of Credit Risk (Details)
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3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2013
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Jun. 30, 2012
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Major Customer and Concentrations of Credit Risk [Abstract] | ||||
Concentration risk, percentage | 90.00% | 88.00% | 91.00% | 90.00% |
Supplemental Cash Flow Information (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of cash flow, supplemental disclosures | Supplemental disclosure of non-cash activities is as follows (in thousands):
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Equity-Based Compensation (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of unit-based compensation arrangements by unit-based payment award | Unit-based compensation expense related to the Partnership that was included in our condensed statements of combined consolidated operations was as follows (in thousands):
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Equity, Cash Distributions (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||
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Jun. 30, 2013
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Mar. 31, 2013
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Dec. 31, 2012
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Jun. 30, 2012
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Jun. 30, 2013
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Jun. 30, 2012
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Jul. 18, 2013
Cash distribution
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Jun. 30, 2013
Cash distribution
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Jun. 30, 2013
Cash distribution
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Distribution Made to Member or Limited Partner | ||||||||||||||
Total Quarterly Distribution Per Unit paid (dollars per unit) | $ 0.4900 | $ 0.4725 | ||||||||||||
Total Quarterly Distribution Per Unit declared (dollars per unit) | $ 0.51 | $ 0.4100 | $ 1.00 | $ 0.7875 | $ 0.51 | [1] | $ 0.51 | [1] | ||||||
Total Cash Distribution including general partner IDRs paid | $ 23,976 | $ 22,911 | ||||||||||||
Total Cash Distribution including general partner IDRs declared | $ 26,108 | $ 12,960 | $ 50,084 | $ 24,790 | $ 26,108 | [1] | ||||||||
Date of Distribution | May 14, 2013 | Feb. 14, 2013 | Aug. 14, 2013 | [1] | ||||||||||
Unitholders Record Date | May 03, 2013 | Feb. 04, 2013 | Aug. 02, 2013 | [1] | ||||||||||
Declaration date | Jul. 18, 2013 | |||||||||||||
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Related-Party Transactions, Agreements (Details) (USD $)
In Millions, unless otherwise specified |
0 Months Ended | 3 Months Ended | 6 Months Ended | |
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Jun. 01, 2013
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Mar. 31, 2013
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Jun. 30, 2013
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Dec. 31, 2012
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Related Party Transactions [Abstract] | ||||
Length of time to apply shortfall payments (months) | 3 months | |||
Deferred revenue related to shortfall billings | $ 0.4 | $ 0.3 | ||
Related Party Transactions | ||||
Omnibus agreement annual fee | 4.0 | 2.5 | ||
Operational services agreement annual fee | $ 3.5 | $ 1.6 | ||
Master Terminalling and Services Agreement - Southern California
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Related Party Transactions | ||||
Term (years) | 10 years | |||
Renewals, number (options) | 2 | |||
Renewals, term (years) | 5 years | |||
Carson Storage Services Agreement
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Related Party Transactions | ||||
Term (years) | 10 years | |||
Renewals, number (options) | 2 | |||
Renewals, term (years) | 5 years |
Debt, Revolving Credit Facility (Details) (USD $)
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6 Months Ended | 6 Months Ended | |||||||||||
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Jun. 30, 2013
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Dec. 31, 2012
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Jun. 30, 2013
Revolving Credit Facility
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May 30, 2013
Revolving Credit Facility
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Jun. 30, 2013
Revolving Credit Facility
Eurodollar
|
Jun. 30, 2013
Revolving Credit Facility
Base Rate
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Jan. 04, 2013
Revolving Credit Facility
Minimum
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Jan. 04, 2013
Revolving Credit Facility
Maximum
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Line of Credit Facility | |||||||||||||
Total loan availability | $ 575,000,000 | ||||||||||||
Maximum loan availability | 650,000,000 | ||||||||||||
Decrease in margin range, minimum, percentage | 0.50% | 1.00% | |||||||||||
Borrowing capacity, description | Borrowings are available under the Revolving Credit Facility up to the total loan availability of the facility. | ||||||||||||
Revolving Credit Facility, collateral | The Revolving Credit Facility is non-recourse to Tesoro, except for TLGP, and is guaranteed by all of our subsidiaries and secured by substantially all of our assets. | ||||||||||||
Borrowings under Revolving Credit Facility | 544,000,000 | 0 | 544,000,000 | 544,000,000 | |||||||||
Initial borrowing rate | 2.19% | ||||||||||||
Letters of credit, amount outstanding | 300,000 | ||||||||||||
Unused loan availability | $ 30,700,000 | ||||||||||||
Remaining percentage of eligible borrowing base | 5.00% | ||||||||||||
Revolver maturity date | Dec. 31, 2017 | ||||||||||||
Eurodollar or Base Rate | 0.19% | [1] | 3.25% | [1] | |||||||||
Eurodollar or Base Rate Margin | 2.00% | [1] | 1.00% | [1] | |||||||||
Commitment Fee (unused portion) | 0.375% | [1] | |||||||||||
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Supplemental Cash Flow Information (Details) (USD $)
|
6 Months Ended | |
---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Supplemental Cash Flow Elements [Abstract] | ||
Interest paid, net of capitalized interest | $ 12,000,000 | $ 900,000 |
Assets received for deposit paid in prior period | 40,000,000 | 0 |
Capital expenditures included in accounts payable | 11,157,000 | 21,086,000 |
Capital lease obligations | 5,026,000 | 0 |
Receivable from affiliate for capital expenditures | 1,120,000 | 0 |
Working capital requirements retained by Sponsor | $ 0 | $ 4,196,000 |
Acquisitions, Carson Terminal Assets (Details) (USD $)
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0 Months Ended | 6 Months Ended | 0 Months Ended | ||
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Apr. 26, 2011
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Jun. 01, 2013
Carson Terminal Assets
terminals
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Jun. 30, 2013
Carson Terminal Assets
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Jun. 01, 2013
Carson Terminal Assets
Common
|
Jun. 01, 2013
Carson Terminal Assets
General Partner
|
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Acquisition, Description | |||||
Effective date of acquisition | Jun. 01, 2013 | ||||
Purchase price | $ 640,000,000 | ||||
Cash consideration | 544,000,000 | ||||
Equity consideration, value | 96,000,000 | ||||
Equity consideration, number of units (units) | 1,445,561 | 29,501 | |||
Number of assets (assets) | 6 | ||||
Years to identify conditions for indemnification (years) | 5 years | 5 years | |||
Acquisition, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | |||||
Prepayments and other | 208,000 | ||||
Property, plant and equipment | 400,000,000 | ||||
Capital lease obligation | (1,185,000) | ||||
Preliminary value of Carson Terminal Assets | $ 399,023,000 | ||||
Business Acquisition, Pro Forma Information | |||||
Carson acquisition pro forma disclosure impracticality | We have not provided disclosure of pro forma revenues and earnings as if the Carson Terminal Assets had been operating as part of our operations during all periods presented in these financial statements. BP managed and operated the Carson Terminal Assets as part of its refining operations and historical U.S. GAAP financial information specific to the Carson Terminal Assets is not available. As a result, preparing pro forma information was determined to be impracticable. |
Equity, Units Rollforward (Details) (USD $)
In Millions, except Share data, unless otherwise specified |
6 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | 6 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||||||
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Jun. 30, 2013
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Dec. 31, 2012
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Jun. 30, 2013
Tesoro
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Jan. 14, 2013
Common
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Jun. 30, 2013
Common
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Jun. 30, 2013
Public common units
|
Jun. 30, 2013
Tesoro common units
|
Jun. 30, 2013
Subordinated
|
Jan. 14, 2013
General Partner
|
Jun. 30, 2013
General Partner
|
Jun. 30, 2012
General Partner
|
Jun. 30, 2013
General Partner
|
Jun. 30, 2012
General Partner
|
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Common units outstanding (units) | 31,722,352 | 20,495,254 | 28,992,876 | 2,729,476 | |||||||||||||||||
Subordinated units outstanding (units) | 15,254,890 | 15,254,890 | 15,254,890 | ||||||||||||||||||
General partner units outstanding (units) | 958,587 | 729,596 | 958,587 | 958,587 | |||||||||||||||||
General partner's ownership interest | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | |||||||||||||||
Tesoro's ownership interest | 40.00% | ||||||||||||||||||||
Increase (Decrease) In Partners' Capital, Units | |||||||||||||||||||||
Balance at December 31, 2012 | 36,479,740 | 20,495,254 | 15,254,890 | 729,596 | |||||||||||||||||
Equity offering (a) | 9,974,490 | [1] | 9,775,000 | 9,775,000 | [1] | 0 | [1] | 199,490 | [1] | ||||||||||||
Unit-based compensation awards (b) | 6,537 | [2] | 6,537 | [2] | 0 | [2] | 0 | [2] | |||||||||||||
Units issued for the Carson Terminal Assets Acquisition | 1,475,062 | 1,445,561 | 0 | 29,501 | |||||||||||||||||
Balance at June 30, 2013 | 47,935,829 | 31,722,352 | 15,254,890 | 958,587 | 958,587 | ||||||||||||||||
Price per unit issued in January Offering (dollars per unit) | $ 41.70 | ||||||||||||||||||||
Net proceeds from issuance of units in January Offering | $ 391.6 | ||||||||||||||||||||
Amount contributed in exchange for general partner units in January Offering | $ 8.3 | ||||||||||||||||||||
General partner units issued in January Offering (units) | 958,587 | 729,596 | 199,490 | ||||||||||||||||||
Equity-based compensation units withheld for taxes (units) | 1,306 | ||||||||||||||||||||
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Equity (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of partners' capital | The table below summarizes changes in the number of units outstanding from December 31, 2012 through June 30, 2013 (in units):
_____________ (a) As a result of the January Offering, we closed a registered public offering of 9,775,000 common units representing limited partner interests, at a public offering price of $41.70 per unit and received net proceeds of $391.6 million. In addition, TLGP contributed $8.3 million in exchange for 199,490 general partner units to maintain a 2% general partnership interest. (b) Unit-based compensation awards are presented net of 1,306 units withheld for taxes. The summarized changes in the carrying amount of our equity are as follows (in thousands):
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Schedule of calculation of net income applicable to partners | The following table presents the allocation of the general partner's interest in net income (in thousands, except percentage of ownership interest):
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Schedule of cash distributions | The table below summarizes the quarterly distributions related to our quarterly financial results:
_____________ (c) This distribution was declared on July 18, 2013 and will be paid on the date of distribution. |
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Schedule of distributions earned by general and limited partners | The allocation of total quarterly cash distributions to general and limited partners is as follows for the three and six months ended June 30, 2013 and 2012 (in thousands). Our distributions are declared subsequent to quarter end; therefore, the table represents total cash distributions applicable to the period in which the distributions are earned.
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Organization and Basis of Presentation (Notes)
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6 Months Ended | ||||||||
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Jun. 30, 2013
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||
Organization and Basis of Presentation | ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES As used in this report, the terms "Tesoro Logistics LP," "TLLP," the "Partnership," "we," "us," or "our" refer to Tesoro Logistics LP, one or more of its consolidated subsidiaries or all of them taken as a whole. References in this report to "Tesoro" or our "Sponsor" refer collectively to Tesoro Corporation and any of its subsidiaries, other than Tesoro Logistics LP, its subsidiaries and its general partner. Organization TLLP is a Delaware limited partnership formed in December 2010 by Tesoro and its wholly owned subsidiary, Tesoro Logistics GP, LLC ("TLGP"), our general partner. Effective June 1, 2013, we entered into a transaction with Tesoro and TLGP pursuant to which we acquired six marketing and storage terminals located in Southern California and certain assets and properties related thereto (the "Carson Terminal Assets") from Tesoro (the "Carson Terminal Assets Acquisition"). In addition, we acquired the northwest products system assets (the "Northwest Products System") on June 19, 2013 (the "Northwest Products System Acquisition") from Chevron Pipe Line Company and Northwest Terminalling Company (collectively, "Chevron"). In 2012, we entered into the following transactions with Tesoro and TLGP, pursuant to which we acquired from Tesoro: the Martinez crude oil marine terminal assets (collectively, the "Martinez Crude Oil Marine Terminal"), effective April 1, 2012 (the "Martinez Marine Terminal Acquisition"); the Long Beach marine terminal and related short-haul pipelines, including the Los Angeles short-haul pipelines (collectively, the "Long Beach Assets"), effective September 14, 2012 (the "Long Beach Assets Acquisition"); and the Anacortes rail car unloading facility assets (collectively, the "Anacortes Rail Facility"), effective November 15, 2012 (the "Anacortes Rail Facility Acquisition"). These transactions along with the Carson Terminal Assets Acquisition are collectively referred to as "Acquisitions from Tesoro." Principles of Combination and Consolidation and Basis of Presentation The Acquisitions from Tesoro were transfers between entities under common control. As an entity under common control with Tesoro, we record the assets that we acquire from Tesoro on our balance sheet at Tesoro's historical basis instead of fair value. Transfers of businesses between entities under common control are accounted for as if the transfer occurred at the beginning of the period, and prior periods are retrospectively adjusted to furnish comparative information. Accordingly, the accompanying financial statements and related notes of TLLP have been retrospectively adjusted to include the historical results of the assets acquired in the Acquisitions from Tesoro for the three and six months ended June 30, 2012 with the exception of the Carson Terminal Assets since they were not operated by Tesoro prior to their acquisition by TLLP. We refer to the historical results of the Martinez Crude Oil Marine Terminal, the Long Beach Assets and the Anacortes Rail Facility, prior to each acquisition date, collectively as our "Predecessors." The See Note B for additional information regarding the acquisitions. The accompanying financial statements and related notes present the combined results of operations and cash flows of our Predecessors at historical cost. The financial statements of our Predecessors have been prepared from the separate records maintained by Tesoro and may not necessarily be indicative of the conditions that would have existed or the results of operations if our Predecessors had been operated as an unaffiliated entity. Our Predecessors did not record revenue for transactions with Tesoro in the Terminalling, Transportation and Storage segment for assets acquired in the Acquisitions from Tesoro prior to the effective date of each acquisition. All intercompany accounts and transactions have been eliminated. The interim condensed combined consolidated financial statements and notes thereto have been prepared by management without audit according to the rules and regulations of the Securities and Exchange Commission ("SEC") and reflect all adjustments that, in the opinion of management, are necessary for a fair presentation of results for the periods presented. Such adjustments are of a normal recurring nature, unless otherwise disclosed. Certain information and notes normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") have been condensed or omitted pursuant to the SEC's rules and regulations. However, management believes that the disclosures presented herein are adequate to present the information fairly. The accompanying interim condensed combined consolidated financial statements and notes should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2012. U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. We review our estimates on an ongoing basis using currently available information. Changes in facts and circumstances may result in revised estimates, and actual results could differ from those estimates. The results of operations of the Partnership, or our Predecessors, for any interim period are not necessarily indicative of results for the full year. Certain prior year balances have been disaggregated in order to conform to the current year presentation. We have evaluated subsequent events through the filing of this Form 10-Q. See Note G for further information regarding the issuance of senior notes on August 1, 2013. We record our financial instruments including cash and cash equivalents, receivables, accounts payable and certain accrued liabilities at their carrying value. We believe the carrying value of these financial instruments approximates fair value. Our fair value assessment incorporates a variety of considerations, including:
The fair value of our senior notes is based on prices from recent trade activity and is categorized in level 2 of the fair value hierarchy. The borrowings under our amended revolving credit facility (the "Revolving Credit Facility"), which includes a variable interest rate, approximate fair value. The carrying value and fair value of our total debt were $902.9 million and $900.8 million, respectively, as of June 30, 2013, and $354.0 million and $368.7 million, respectively, as of December 31, 2012. Significant Accounting Policies - Goodwill Goodwill represents the amount the purchase price exceeds the fair value of net assets acquired in a business combination. We do not amortize goodwill. We are required, however, to review goodwill for impairment annually, or more frequently if events or changes in business circumstances indicate the book value of the assets may not be recoverable. In such circumstances, we record the impairment in loss on asset disposals and impairments in our statement of combined consolidated operations. We review the carrying value of goodwill for impairment on November 1st of each year, or sooner if events or changes in circumstances indicate the carrying amount of a reporting unit may exceed fair value. We perform a qualitative analysis to determine whether it is more likely than not that the fair value of goodwill is less than its carrying value. Some of the impairment indicators we consider include significant differences between the carrying amount and the estimated fair value of our assets and liabilities; macroeconomic conditions such as a deterioration in general economic condition or limitations on accessing capital; industry and market considerations such as a deterioration in the environment in which we operate and an increased competitive environment; cost factors such as increases in labor or other costs that have a negative effect on earnings and cash flows; overall financial performance such as negative or declining cash flows or a decline in actual or planned revenue or earnings compared with actual and projected results of relevant prior periods; other relevant events such as litigation, changes in management, key personnel, strategy or customers; the testing for recoverability of our long-lived assets and a potential decrease in share price. We evaluate the significance of identified events and circumstances on the basis of the weight of evidence along with how they could affect the relationship between the reporting unit's fair value and carrying value, including positive mitigating events and circumstances. If we determine it is more likely than not that the fair value of goodwill is less than its carrying amount, then a second step is performed to quantify the amount of goodwill impairment. If impairment is indicated, a goodwill impairment charge is recorded to write the goodwill down to its implied fair value. See Note B for additional information regarding goodwill associated with the Northwest Products System Acquisition. |
Related-Party Transactions (Notes)
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Jun. 30, 2013
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related-Party Transactions | RELATED-PARTY TRANSACTIONS Affiliate Agreements The Partnership has various long-term, fee-based commercial agreements with Tesoro under which we provide pipeline transportation, trucking, terminal distribution and storage services to Tesoro, and Tesoro commits to provide us with minimum monthly throughput volumes of crude oil and refined products and minimum fees for dedicated storage. If, in any calendar month, Tesoro fails to meet its minimum volume commitments under these agreements, it will be required to pay us a shortfall payment equal to the revenue associated with the difference between the actual throughput and the minimum throughput commitment. These shortfall payments may be applied as a credit against any amounts due above their minimum volume commitments for up to three months after the shortfall occurs. The balance of deferred revenue-affiliate in our condensed consolidated balance sheets at June 30, 2013 and December 31, 2012 includes $0.4 million and $0.3 million, respectively, related to shortfall billings to Tesoro and the remaining amount represents advanced billings. We believe the terms and conditions under these agreements, as well as our other agreements with Tesoro are generally no less favorable to either party than those that could have been negotiated with unaffiliated parties with respect to similar services. See our Annual Report on Form 10-K for the year ended December 31, 2012 for a description of our commercial agreements and other agreements with Tesoro. We entered into or amended the following agreements with Tesoro in 2013: Amended and Restated Master Terminalling Services Agreement. The Partnership entered into a master terminalling services agreement with Tesoro at the closing of the initial public offering (the "Initial Offering") in April 2011. The agreement was amended and restated on February 22, 2013, to allow for changes to ancillary services and related costs and fees to be made by purchase orders executed among the parties. Second Amended and Restated Trucking Transportation Services Agreement. The Partnership entered into a trucking transportation services agreement with Tesoro at the closing of the Initial Offering. The agreement was amended and restated on March 26, 2013 to allow for changes to ancillary services and related costs and fees to be made by purchase orders executed among the parties. In addition, the amendment adjusted the comparison of competitive rates to include more market participants in determining future fee adjustments, and it allows for a quarterly rate adjustment in lieu of the previously established annual adjustment. Master Terminalling and Services Agreement - Southern California. The Partnership entered into a ten-year master terminalling services agreement for Southern California (the "MTSA-Southern California") with Tesoro at the closing of the Carson Terminal Assets Acquisition on June 1, 2013. Tesoro has the option to extend the term for up to two renewal terms of five years each. Pursuant to the MTSA-Southern California, Tesoro pays the Partnership fees for certain terminalling, storage and ancillary services at the Partnership's Colton, Hynes, Hathaway, San Diego and Vinvale terminals, which were acquired as part of the Carson Terminal Assets Acquisition. Carson Storage Services Agreement. The Partnership entered into a ten-year storage services agreement (the "CSSA") with Tesoro with respect to the Carson crude terminal, which was acquired as part of the Carson Terminal Assets Acquisition on June 1, 2013. Tesoro has the option to extend the term for up to two renewal terms of five years each. Under the CSSA, Tesoro pays the Partnership fees for storage and handling services for crude oil, refinery feedstocks and refined products at the Carson crude terminal. Second Amended and Restated Omnibus Agreement. The Partnership entered into an omnibus agreement with Tesoro at the closing of the Initial Offering. The agreement has been amended for each acquisition from Tesoro including the most recent June 1, 2013 amendment, which was entered into in connection with the Carson Terminal Assets Acquisition (the "Amended Omnibus Agreement"). In addition, the schedules to the Amended Omnibus Agreement were amended and restated (the "Amended Omnibus Schedules"), effective June 1, 2013. The Amended Omnibus Schedules include the Carson Terminal Assets, establish indemnification by Tesoro for certain matters including environmental, title and tax matters associated with the Carson Terminal Assets and increase the annual administrative fee payable by the Partnership to Tesoro under the Amended Omnibus Agreement from $2.5 million to $4.0 million. Amended and Restated Operational Services Agreement. The Partnership entered into an operational services agreement with Tesoro at the closing of the Initial Offering, which has subsequently been amended for each acquisition from Tesoro (the "Amended Operational Services Agreement"). The schedules to the Amended Operational Services Agreement were most recently amended on June 1, 2013, in connection with the Carson Terminal Assets Acquisition, to include the Carson Terminal Assets, which increased the annual fee we pay to Tesoro for certain operational services by $1.6 million to $3.5 million. Affiliate Transactions Summary of Transactions. A summary of revenue and expense transactions with Tesoro, including expenses directly charged and allocated to our Predecessors, are as follows (in thousands):
____________
In accordance with our partnership agreement, our common, subordinated and general partner interests are entitled to receive quarterly distributions of available cash. In February and May 2013, we paid quarterly cash distributions, of which $19.0 million was paid to Tesoro and TLGP, including incentive distribution rights ("IDRs"). On July 18, 2013, we declared a quarterly cash distribution of $0.51 per unit, which will be paid on August 14, 2013. The distribution will consist of $11.3 million to Tesoro and TLGP, including IDRs. |
Major Customer and Concentrations of Credit Risk (Notes)
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6 Months Ended |
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Jun. 30, 2013
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Major Customer and Concentrations of Credit Risk [Abstract] | |
Major Customer and Concentrations of Credit Risk | MAJOR CUSTOMER AND CONCENTRATIONS OF CREDIT RISK Tesoro accounted for 90% and 91% of our total revenues for the three and six months ended June 30, 2013, respectively, and 88% and 90% of our total revenues for the three and six months ended June 30, 2012, respectively. The revenues for each period are not comparable as no revenue was recorded by the Predecessors for transactions with Tesoro in the Terminalling, Transportation and Storage segment that were associated with the Acquisitions from Tesoro. |
Net Income Per Unit (Notes)
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Jun. 30, 2013
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Net Income (Loss), Per Outstanding Limited Partnership and General Partnership Unit, Basic and Diluted, Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income Per Unit | NET INCOME PER UNIT We use the two-class method when calculating the net income per unit applicable to limited partners, because we have more than one participating security. Our participating securities consist of common units, subordinated units, general partner units and IDRs. Net income attributable to the Partnership is allocated between the limited (both common and subordinated) and general partners in accordance with our partnership agreement. Diluted net income per unit includes the effects of potentially dilutive units on our common units, which consist of unvested service and performance phantom units. Basic and diluted net income per unit applicable to subordinated limited partners are the same, as there are no potentially dilutive subordinated units outstanding. The calculation of net income per unit is as follows (in thousands, except unit and per unit amounts):
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Debt, Senior Notes (Details) (6.125% Senior Notes due 2021, USD $)
In Millions, unless otherwise specified |
0 Months Ended | 6 Months Ended |
---|---|---|
Aug. 01, 2013
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Jun. 30, 2013
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Debt Instrument | ||
Maturity date | Oct. 15, 2021 | |
Aggregate principal amount | $ 550.0 | |
Interest rate | 6.125% | |
6.125% Senior Notes due 2021, collateral | The Senior Notes due 2021 also contain customary terms, events of default and covenants for an issuance of non-investment debt grade securities. The Senior Notes due 2021 are unsecured and guaranteed by all of our domestic subsidiaries, except Tesoro Logistics Finance Corp., the co-issuer of the Senior Notes due 2021, and are non-recourse to Tesoro, except for TLGP. | |
On or after October 15, 2016 through October 15, 2017
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Debt Instrument | ||
Redemption premium, percentage of face value | 104.594% | |
October 15, 2017 through October 15, 2018
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Debt Instrument | ||
Redemption premium, percentage of face value | 103.063% | |
October 15, 2018 through October 15, 2019
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Debt Instrument | ||
Redemption premium, percentage of face value | 101.531% | |
Up through October 15, 2016
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Debt Instrument | ||
Redemption price, percentage of principal amount | 35.00% | |
Redemption premium, percentage of face value | 106.125% |
Segment Disclosures (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of segment reporting information, by segment | Capital expenditures by operating segment were as follows (in thousands):
Identifiable assets by operating segment were as follows (in thousands):
Segment information is as follows (in thousands):
____________
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Acquisitions, Northwest Products System (Details) (USD $)
|
6 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Dec. 31, 2012
|
Jun. 19, 2013
Northwest Products System
|
Jun. 30, 2013
Northwest Products System
|
Jun. 30, 2012
Northwest Products System
|
Jun. 30, 2013
Northwest Products System
|
Jun. 30, 2012
Northwest Products System
|
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Acquisition, Description | ||||||||
Effective date of acquisition | Jun. 19, 2013 | |||||||
Purchase price | $ 354,800,000 | |||||||
Deposit | 544,000,000 | 67,500,000 | 40,000,000 | |||||
Chevron environmental remediation indemnification period (years) | 2 years | |||||||
Divestiture agreement term (months) | 6 months | |||||||
Acquisition, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | ||||||||
Prepayments and other | 53,000 | 53,000 | ||||||
Property, plant and equipment | 358,362,000 | 358,362,000 | ||||||
Goodwill | 8,738,000 | 0 | 8,738,000 | 8,738,000 | ||||
Other noncurrent assets | 4,500,000 | 4,500,000 | ||||||
Other current liabilities | (12,196,000) | (12,196,000) | ||||||
Noncurrent liabilities | (4,700,000) | (4,700,000) | ||||||
Preliminary purchase price | 354,757,000 | 354,757,000 | ||||||
Environmental liability accrual | 16,600,000 | 16,600,000 | ||||||
Business Acquisition, Pro Forma Information | ||||||||
Revenues | 69,960,000 | 49,240,000 | 133,236,000 | 89,518,000 | ||||
Net income | 20,486,000 | 18,145,000 | 42,010,000 | 28,502,000 | ||||
Net income attributable to partners | $ 20,486,000 | $ 16,004,000 | $ 42,010,000 | $ 29,873,000 | ||||
Common - basic and diluted | $ 0.41 | $ 0.44 | $ 0.84 | $ 0.78 | ||||
Subordinated - basic and diluted | $ 0.39 | $ 0.28 | $ 0.83 | $ 0.62 |
Property, Plant and Equipment (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Property, Plant and Equipment | ||
Gross Property, Plant and Equipment | $ 1,155,666 | $ 371,125 |
Accumulated depreciation | (102,493) | (96,753) |
Net Property, Plant and Equipment | 1,053,173 | 274,372 |
Crude Oil Gathering
|
||
Property, Plant and Equipment | ||
Gross Property, Plant and Equipment | 139,463 | 116,744 |
Terminalling, Transportation and Storage
|
||
Property, Plant and Equipment | ||
Gross Property, Plant and Equipment | $ 1,016,203 | $ 254,381 |