10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2016

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________

Commission file number: 001-36049

World Point Terminals, LP

(Exact Name of Registrant as Specified in Its Charter)

Delaware	46-2598540
(State or Other Jurisdiction of	(IRS Employer Identification No.)
Incorporation or Organization)

8235 Forsyth Blvd., Suite 400

St. Louis, Missouri 63105

(Address of Principal Executive Offices)

(314) 889-9660

(Registrant’s Telephone Number, Including Area Code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes  þ    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes  þ   No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	¨	Accelerated filer	þ
Non-accelerated filer	¨	Smaller reporting company	¨
(do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  ¨   No  þ

On August 9, 2016, the Registrant had 18,375,507 Common Units and 16,485,507 Subordinated Units outstanding.

WORLD POINT TERMINALS, LP
INDEX TO FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2016

	Part I. Financial Information
Item 1.	Financial Statements (Unaudited):
	Condensed Consolidated Balance Sheets as of June 30, 2016 and December 31, 2015	3
	Condensed Consolidated Statements of Income for the Three and Six Months Ended June 30, 2016 and June 30, 2015	4
	Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2016 and June 30, 2015	5
	Condensed Consolidated Statement of Partners’ Equity for Year ended December 31, 2015 and the Six Months Ended June 30, 2016	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	33
Item 4.	Controls and Procedures	33
	PART II. Other Information
Item 1.	Legal Proceedings	33
Item 1A.	Risk Factors	34
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	34
Item 3.	Defaults Upon Senior Securities	34
Item 4.	Mine Safety Disclosures	34
Item 5.	Other Information	34
Item 6.	Exhibits	35

PART I

FINANCIAL INFORMATION

Item 1. Financial Statements.

World Point Terminals, LP

Condensed Consolidated Balance Sheets

As of June 30, 2016 and December 31, 2015

(Dollars in thousands)

(Unaudited)

	June 30, 2016		December 31, 2015
Assets
Current Assets
Cash and cash equivalents	$	11,964	$	12,186
Accounts receivable, net of allowances of $66 and $25, respectively		3,729		2,603
Accounts receivable – affiliates		1,204		810
Short-term investments		3,938		3,857
Prepaid insurance		24		161
Prepaid insurance – affiliates		729		110
Income tax receivable		55		54
Other current assets		705		553
Total current assets		22,348		20,334
Property, plant and equipment, net		172,136		171,488
Goodwill		559		559
Acquired customer contracts, net		3,990		4,560
Investment in joint venture		8,162		8,961
Other assets		429		521
Total Assets	$	207,624	$	206,423
Liabilities and Partners’ Equity
Current Liabilities
Accounts payable	$	3,531	$	4,274
Accrued liabilities		1,603		1,195
Due to affiliate companies		284		1,431
Deferred revenue – short-term – affiliates		1,608		802
Income taxes payable		101		102
Total current liabilities		7,127		7,804
Deferred revenue – long-term		340		254
Deferred revenue – long-term – affiliates		4,692		2,071
Other noncurrent liabilities		1,086		1,253
Total liabilities		13,245		11,382
Commitments and contingencies (Notes 9 and 17)		-		-
Partners’ Equity
Common units (18,375,507 units issued and outstanding at June 30, 2016 and December 31, 2015)		139,632		139,380
Subordinated units (16,485,507 units issued and outstanding at June 30, 2016 and December 31, 2015)		54,747		55,661
General partner interest (0% interest)		-		-
Total partners’ equity		194,379		195,041
Total Liabilities and Partners’ Equity	$	207,624	$	206,423

The accompanying notes are an integral part of these financial statements.

3 

World Point Terminals, LP

Condensed Consolidated Statements of Income

For the Three Months and Six Months Ended June 30, 2016 and June 30, 2015

(Dollars in thousands, except per unit amounts)

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
REVENUES
Third parties	$	14,707		$	15,183		$	28,687		$	30,457
Affiliates		10,403			9,254			20,988			19,123
		25,110			24,437			49,675			49,580
OPERATING COSTS, EXPENSES AND OTHER
Operating expenses		7,247			7,324			13,881			14,650
Operating expenses reimbursed to affiliates		1,015			653			1,986			1,386
Selling, general and administrative expenses		850			923			1,891			1,960
Selling, general and administrative expenses reimbursed to affiliates		574			441			1,186			891
Depreciation and amortization		5,984			6,285			11,893			12,458
Income from joint venture		(197	)		(61	)		(417	)		(170	)
Total operating costs, expenses and other		15,473			15,565			30,420			31,175
INCOME FROM OPERATIONS		9,637			8,872			19,255			18,405
OTHER INCOME/(EXPENSE)
Interest expense		(207	)		(206	)		(414	)		(411	)
Interest and dividend income		54			92			110			177
Gain (loss) on investments and other-net		121			(162	)		125			(68	)
Income before income taxes		9,605			8,596			19,076			18,103
Provision for income taxes		43			22			92			30
NET INCOME	$	9,562		$	8,574		$	18,984		$	18,073
BASIC AND DILUTED EARNINGS PER UNIT ATTRIBUTABLE TO UNITHOLDERS
Common	$	0.27		$	0.25		$	0.54		$	0.52
Subordinated	$	0.27		$	0.25		$	0.54		$	0.52
WEIGHTED AVERAGE NUMBER OF UNITS OUTSTANDING
Common		18,375,507			18,375,507			18,375,507			18,375,507
Subordinated		16,485,507			16,485,507			16,485,507			16,485,507

The accompanying notes are an integral part of these financial statements.

4 

World Point Terminals, LP

Condensed Consolidated Statements of Cash Flows

For the Six Months Ended June 30, 2016 and June 30, 2015

(Dollars in thousands)

(Unaudited)

	For the Six Months Ended June 30,
	2016			2015
Cash flows provided by operating activities
Net income	$	18,984		$	18,073
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		11,893			12,458
Amortization of deferred financing costs		92			92
Loss (gain) on marketable securities		(81	)		98
Equity based compensation		1,271			1,270
Income from joint venture		(417	)		(170	)
Changes in operating assets and liabilities (net of effects of acquisitions):
Accounts receivable		(1,126	)		(440	)
Prepaid insurance		(482	)		(269	)
Other current assets and other assets		(152	)		(89	)
Accounts payable		(1,192	)		(2,325	)
Accrued liabilities		407			372
Deferred revenue		3,513			1,766
Income taxes payable/receivable		(2	)		(187	)
Due to affiliated companies		(1,541	)		(2,229	)
Other noncurrent liabilities		(167	)		18
Net cash provided by operating activities		31,000			28,438
Cash flows from investing activities
Purchase of short-term investments		-			(129	)
Proceeds from sale of short-term investments		-			1,872
Distribution from CENEX joint venture		1,216			-
Capital expenditures		(11,522	)		(11,128	)
Net cash used in investing activities		(10,306	)		(9,385	)
Cash flows from financing activities
Distributions to unitholders		(20,916	)		(20,916	)
Net cash used in financing activities		(20,916	)		(20,916	)
Net change in cash and cash equivalents		(222	)		(1,863	)
Cash and cash equivalents at beginning of year		12,186			18,429
Cash and cash equivalents at end of period	$	11,964		$	16,566
Cash paid for interest	$	303		$	302
Cash paid for income taxes	$	97		$	217
Noncash investing transactions – property and equipment additions included in accounts payable	$	1,622		$	1,215
Noncash financing and investing transactions – issuance of units for acquisition of terminal business	$	-		$	31,186

The accompanying notes are an integral part of these financial statements.

5 

World Point Terminals, LP

Condensed Consolidated Statement of Partners’ Equity

For the Year Ended December 31, 2015 and the Six Months Ended June 30, 2016

(Dollars in thousands)

(Unaudited)

	Partnership
	Limited Partner Common Units			Limited Partner Subordinated Units			General Partner (non- economic interest)
BALANCE – DECEMBER 31, 2014	$	110,241		$	59,777		$	-
Equity based compensation expense		2,540			-			-
Net income		17,463			15,666			-
Distributions		(22,050	)		(19,782	)		-
Issuance of units for acquisition of terminal assets		31,186			-			-
BALANCE – DECEMBER 31, 2015	$	139,380		$	55,661		$	-
Equity based compensation expense		1,270			-			-
Net income		10,007			8,977			-
Distributions		(11,025	)		(9,891	)		-
BALANCE – JUNE 30, 2016	$	139,632		$	54,747		$	-

The accompanying notes are an integral part of these financial statements.

6 

Notes to Condensed Consolidated Financial Statements of World Point Terminals, LP

(Dollars in thousands, except per unit amounts)

(Unaudited)

1) BUSINESS AND BASIS OF PRESENTATION

Organization

World Point Terminals, LP (the “Partnership”) is a Delaware limited partnership that was formed on April 19, 2013 by World Point Terminals, Inc. (our “Parent”) and WPT GP, LLC (the “General Partner”). The Partnership, through its wholly owned subsidiary Center Point Terminal Company, LLC (“Center Point”), owns, operates, develops and acquires liquid bulk storage terminals and related assets primarily for the storage of petroleum based products, including light refined products, heavy refined products and crude oil. We operate fee-based facilities located along the East Coast, Gulf Coast and Midwest regions of the United States.

Basis of Presentation

These unaudited interim condensed consolidated financial statements were prepared under the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) and in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements. Accordingly, these financial statements do not include all of the disclosures required by GAAP and should be read along with the Partnership’s 2015 audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2015. The Partnership’s financial statements as of June 30, 2016, and for the three and six months ended June 30, 2016 and 2015, are unaudited and have been prepared on the same basis as the annual consolidated financial statements. All intercompany accounts and transactions have been eliminated in the preparation of the accompanying financial statements.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

In management’s opinion, the accompanying unaudited condensed consolidated financial statements include all adjustments consisting of normal recurring accruals necessary for the fair presentation of the results of operations for the three and six months ended June 30, 2016 and 2015. Information for interim periods may not be indicative of the Partnership’s operating results for the entire year.

2) EARNINGS PER UNIT AND CASH DISTRIBUTIONS

Earnings per unit applicable to limited partners (including subordinated unitholders) is computed by dividing limited partners’ interest in net income, after deducting amounts due pursuant to Incentive Distribution Rights (“IDRs”) by the weighted-average number of outstanding common and subordinated units. Our net income is allocated to the limited partners in accordance with their respective ownership interests, after giving effect to priority income allocations, including incentive distributions, if any, to the holders of IDRs, pursuant to our partnership agreement. Earnings in excess of distributions are allocated to the limited partners based on their respective ownership interests. Payments made to our unitholders are determined in relation to actual distributions declared and are not based on the net income allocations used in the calculation of earnings per unit. The weighted-average number of units outstanding was as follows:

	Three Months Ended June 30, 2016		Six Months Ended June 30, 2016
Common Units		18,375,507		18,375,507
Subordinated Units		16,485,507		16,485,507

7 

Notes to Condensed Consolidated Financial Statements of World Point Terminals, LP

(Dollars in thousands, except per unit amounts)

(Unaudited)

In addition to the common and subordinated units, we have also identified the IDRs as participating securities and use the two-class method when calculating the earnings per unit applicable to limited partners, which is based on the weighted-average number of common and subordinated units outstanding during the period. Basic and diluted earnings per unit applicable to limited partners are the same because we do not have any potentially dilutive units outstanding.

The calculation of earnings per unit is as follows:

	Three Months Ended June 30, 2016						Six Months Ended June 30, 2016
	Common		Subordinated		Total		Common		Subordinated		Total
Net income attributable to unitholders	$	5,041	$	4,521	$	9,562	$	10,007	$	8,977	$	18,984
Less:
Distributions payable on behalf of IDRs		-		-		-		-		-		-
Distributions payable on behalf of general partner interest		-		-		-		-		-		-
Net income attributable to unitholders	$	5,041	$	4,521	$	9,562	$	10,007	$	8,977	$	18,984
Weighted average limited partner units outstanding:
Common Units – Public1		11,952,500						11,952,500
Common Units – Parent		6,423,007						6,423,007
Subordinated Units – Parent				16,485,507						16,485,507
Earnings per unit	$	0.27	$	0.27			$	0.54	$	0.54

¹ As of June 30, 2016, Apex Oil Company, Inc. (“Apex”) owns 1,550,000 of the total 11,952,500 common units – public.

Cash Distributions

Our partnership agreement generally provides that we will make our distributions, if any, each quarter in the following manner:

· first, to all unitholders, pro rata, until each unitholder receives a total of $0.345  per unit for that quarter (the “first target distribution”);

· second, 85.0% to all unitholders, pro rata, and 15.0% to the holders of the IDRs, pro rata, until each unitholder receives a total of $0.375 per unit for that quarter (the “second target distribution”);

· third, 75.0% to all unitholders, pro rata, and 25.0% to the holders of the IDRs, pro rata, until each unitholder receives a total of $0.45 per unit for that quarter (the “third target distribution”); and

· thereafter, 50.0% to all unitholders, pro rata, and 50.0% to the holders of the IDRs, pro rata.

In each case, the amount of the target distribution set forth above is exclusive of any distributions to common unitholders to eliminate any cumulative arrearages in payment of the minimum quarterly distribution. The percentage interests set forth above assume that we do not issue additional classes of equity securities.

8 

Notes to Condensed Consolidated Financial Statements of World Point Terminals, LP

(Dollars in thousands, except per unit amounts)

(Unaudited)

Our unitholders and the holders of our IDRs will receive distributions according to the following percentage allocations:

	Total Quarterly Distribution	Marginal Percentage Interest in Distributions
	Target Amount	Unitholders			Holders of IDRs
Minimum Quarterly Distribution	$0.30		100	%		-
First Target Distribution	above $0.30 up to $0.345		100	%		-
Second Target Distribution	above $0.345 up to $0.375		85	%		15	%
Third Target Distribution	above $0.375 up to $0.450		75	%		25	%
Thereafter	above $0.450		50	%		50	%

The following table sets forth the distribution declared in total and per limited partner unit attributable to the periods indicated:

		Distributions
Period	Date Declared	Amount		Per Unit
January 1, 2015 through March 31, 2015	April 21, 2015	$	10,458	$	0.3000
April 1, 2015 through June 30, 2015	July 16, 2015	$	10,458	$	0.3000
July 1, 2015 through September 30, 2015	October 14, 2015	$	10,458	$	0.3000
October 1, 2015 through December 31, 2015	January 14, 2016	$	10,458	$	0.3000
January 1, 2016 through March 31, 2016	April 14, 2016	$	10,458	$	0.3000
April 1, 2016 through June 30, 2016	July 15, 2016	$	10,458	$	0.3000

3) FINANCIAL INSTRUMENTS

The Partnership’s financial assets and liabilities consist primarily of cash and cash equivalents, accounts receivable, short-term investments, accounts payable and accrued liabilities.

The Partnership has exposure to counterparty credit risk, liquidity risk, interest rate risk, and other price risk with its financial assets and liabilities. The Partnership’s risk management program seeks to minimize potential adverse effects on the Partnership’s financial performance and ultimately shareholder value. The Partnership manages its risks and risk exposures through a combination of sound business practices, derivative instruments and a system of internal controls.

Credit Risk — Credit risk arises from cash held with banks, credit exposure to customers (including outstanding accounts receivable), and counterparty risk associated with certain of the Partnership’s short-term investments.

Cash and cash equivalents consist of bank balances. Credit risk associated with cash is minimized by ensuring that these financial assets are held at high quality financial institutions.

9 

Notes to Condensed Consolidated Financial Statements of World Point Terminals, LP

(Dollars in thousands, except per unit amounts)

(Unaudited)

Accounts receivable consists primarily of trade accounts receivable from storage related revenues. The Partnership’s credit risk arises from the possibility that a counterparty which owes the Partnership money is unable or unwilling to meet its obligations in accordance with the terms and conditions of the contracts with the Partnership, which would result in a financial loss for the Partnership. Credit risk associated with accounts receivable is minimized by the business model and collection policies of the Partnership. Most of the Partnership’s customers prepay their obligations at the beginning of each month and/or the Partnership has custody of customer assets at its facilities. The assets held by the Partnership belonging to its customers generally carry a market value well in excess of the accounts receivable balances due. The Partnership conducts business with a relatively few number of customers, including one affiliated customer that comprised approximately 42% and 38% of the Partnership’s first six months 2016 and 2015 revenues, respectively, and another customer that comprised approximately 11% of the Partnership’s first six months 2016 and 2015 revenues, under both short-term and long-term contracts. A large portion of the Partnership’s annual expenses are fixed and, accordingly, the Partnership’s ability to meet its ongoing obligations is dependent upon its ability to retain existing customers and/or attract new ones.

The carrying amounts of accounts receivable are reduced through the use of an allowance for doubtful accounts and the amount of the loss is recognized in the consolidated statements of income. The allowance for doubtful accounts is determined by specific customer balance analysis. When a receivable balance is considered uncollectable, it is written off against the allowance for accounts receivable. Subsequent recoveries of amounts previously written off reduce expenses in the consolidated statements of income. Historically trade credit losses have been minimal.

The Partnership has equity investments in marketable securities, including certain preferred and trust preferred stocks and debt securities. The Partnership seeks to mitigate risk of a financial loss by investing in what it considers to be high-quality instruments with quality counterparties.

4) FAIR VALUE MEASUREMENTS

The Partnership adopted the amendments to Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures, for the consolidated financial statements. The amendments require the use of a fair value hierarchy in order to classify the fair value disclosures related to the Partnership’s financial assets and financial liabilities that are recognized in the balance sheets at fair value.

The fair value hierarchy has the following levels:

Level 1 — Values based on unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities.

Level 2 — Values based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, or model based valuation techniques for which all significant assumptions are observable in the market.

Level 3 — Values are generated from model based techniques that use significant assumptions not observable in the market. Valuation techniques could include use of option pricing models, discounted cash flow models and similar techniques. The Partnership does not currently have any instruments with fair value determined using Level 3 inputs.

The level in the fair value hierarchy within which the fair value measurement is categorized in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety.

10 

Notes to Condensed Consolidated Financial Statements of World Point Terminals, LP

(Dollars in thousands, except per unit amounts)

(Unaudited)

The financial assets and financial liabilities, measured at fair value in the consolidated balance sheets, consisted of the following as of June 30, 2016 and December 31, 2015:

June 30, 2016	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	11,964	$	-	$	-	$	11,964
Short-term investments
Exchange traded debt securities		533		-		-		533
Preferred stocks		3,405		-		-		3,405
Total short-term investments		3,938		-		-		3,938
Total assets at fair value	$	15,902	$	-	$	-	$	15,902
Long-term incentive plan liability	$	-	$	5	$	-	$	5

December 31, 2015	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	12,186	$	-	$	-	$	12,186
Short-term investments
Exchange traded debt securities		517		-		-		517
Preferred stocks		3,340		-		-		3,340
Total short-term investments	$	3,857	$	-	$	-	$	3,857
Total assets at fair value	$	16,043	$	-	$	-	$	16,043
Long-term incentive plan liability	$	-	$	4	$	-	$	4

For assets and liabilities that are measured using quoted prices in active markets, the total fair value is the published market price per unit multiplied by the number of units held without consideration of transaction costs. The following methods and assumptions were used to estimate the fair value of each class of financial instrument:

Cash Equivalents — The carrying value of cash equivalents represents fair value as it is based on active market quotes available for these assets and is classified as Level 1.

Short-Term Investments— The short-term investments consist of investments in listed exchange traded debt securities, preferred stocks and trust preferred securities. The securities are valued using quoted prices from the various public markets. The securities trade on public exchanges, both domestic and foreign, and can be accurately described as active markets. The observable valuation inputs are unadjusted quoted prices that represent active market trades and are classified as Level 1.

Long-Term Incentive Plan Liability – The long-term incentive plan liability is the estimated value of unit appreciation rights granted to our employees, as calculated by the Black-Scholes model. The liability is valued using significant assumptions that are observable in the market including an expected risk-free rate, distribution yield, volatility rate, and life to maturity. The liability is classified as Level 2.

11 

Notes to Condensed Consolidated Financial Statements of World Point Terminals, LP

(Dollars in thousands, except per unit amounts)

(Unaudited)

5) ALLOWANCE FOR DOUBTFUL RECEIVABLES

The following table displays a roll forward of the allowance for doubtful trade receivables for the six months ended June 30, 2016 and the year ended December 31, 2015:

	June 30, 2016		December 31, 2015
Allowance for doubtful receivable at January 1	$	25	$	8
Additions charged to expense		41		28
Subtractions included in income		-		(11	)
	$	66	$	25

6) PROPERTY, PLANT AND EQUIPMENT

Property, plant, and equipment consisted of the following as of June 30, 2016 and December 31, 2015:

June 30, 2016	Cost		Accumulated Depreciation		Net Book Value
Land	$	32,564	$	-	$	32,564
Tanks and appenditures		246,798		144,166		102,632
Docks and jetties		17,943		7,482		10,461
Machinery and equipment		10,251		7,749		2,502
Buildings		2,710		960		1,750
Other		11,847		4,666		7,181
Assets under construction		15,046		-		15,046
	$	337,159	$	165,023	$	172,136

December 31, 2015	Cost		Accumulated Depreciation		Net Book Value
Land	$	32,564	$	-	$	32,564
Tanks and appenditures		241,985		135,031		106,954
Docks and jetties		17,937		6,634		11,303
Machinery and equipment		10,081		7,026		3,055
Buildings		2,628		897		1,731
Other		11,153		4,117		7,036
Assets under construction		8,845		-		8,845
	$	325,193	$	153,705	$	171,488

7) TERMINAL ACQUISITIONS

On September 14, 2015, the Partnership acquired a terminal facility in Salisbury, Maryland which has a total shell capacity of 177,000 barrels for the storage of gasoline, ultra-low-sulfur diesel, heating oil and ethanol. The terminal is served by truck and barge. The total fair value of the terminal was $965 and was allocated to property, plant and equipment. There were no other identifiable assets or liabilities included in this acquisition.

12 

Notes to Condensed Consolidated Financial Statements of World Point Terminals, LP

(Dollars in thousands, except per unit amounts)

(Unaudited)

On January 1, 2015, the Partnership acquired a terminal facility in Greensboro, North Carolina which has a total shell capacity of 684,000 barrels for the storage of gasoline, distillate, ethanol and jet fuel. The terminal is served by truck and connection to the Colonial Pipeline. The Partnership entered into a contribution agreement with Apex Oil Company, Inc. and one of its subsidiaries, whereby the Partnership issued 1,550,000 common units to Apex in exchange for the terminal. Based on the closing price of the Partnership’s common units on December 31, 2014, the value of the units issued represented approximately $31,186 in total consideration. The acquisition of the Greensboro terminal qualifies as a business under the Business Combinations topic of the ASC. The allocation of the contribution consideration to the assets acquired and liabilities assumed was accounted for under the acquisition method of accounting. Assets acquired and liabilities assumed in the transaction were recorded at their estimated acquisition date fair values, while transaction costs associated with the acquisition were expensed as incurred, other than $48 in closing costs which were recorded as property, plant and equipment.

The Partnership has allocated the contribution consideration to the assets acquired as follows:

Contribution consideration
Property, plant and equipment	$	25,304
Goodwill		182
Acquired customer contracts		5,700
Total consideration		31,186
Closing costs		48
Additive inventory		53
Total terminal cost	$	31,287

8) ACQUIRED CUSTOMER CONTRACTS

In connection with the acquisition of the terminal facility in Greensboro, North Carolina, the Partnership allocated $5,700 of the consideration to acquired customer contracts. The cost will be amortized on a straight-line basis over a period of five years.

Acquired customer contracts consisted of the following at June 30, 2016 and December 31, 2015:

	June 30, 2016			December 31, 2015
Cost	$	5,700		$	5,700
Less accumulated amortization		(1,710	)		(1,140	)
	$	3,990		$	4,560

13 

Notes to Condensed Consolidated Financial Statements of World Point Terminals, LP

(Dollars in thousands, except per unit amounts)

(Unaudited)

9) COMMITMENTS

The Partnership leases land and other use rights at some of its facilities. These leases expire from March 31, 2017 through February 1, 2061. In accordance with the terms of its lease with the Galveston port authority, in lieu of periodic lease payments, the Partnership is responsible for the maintenance of the dock. Lease expense for the periods indicated were:

Three Months Ended June 30,				Six Months Ended June 30,
2016		2015		2016		2015
$	244	$	304	$	546	$	577

Minimum rental commitments for all storage facilities of the Partnership under existing non-cancelable operating leases for the remainder of 2016 and for the years ending December 31 thereafter are as follows:

2016	$	269
2017		577
2018		570
2019		479
2020		43
Thereafter		5
	$	1,943

10) DEBT

On August 14, 2013, Center Point entered into a $200,000 senior secured revolving credit facility with The Bank of Tokyo-Mitsubishi UFJ, Ltd., as administrative agent, and a syndicate of lenders (the “Credit Facility”), which has an initial maturity date of August 14, 2018. The Credit Facility is available, subject to certain conditions, for working capital, capital expenditures, permitted acquisitions and general partnership purposes, including distributions and unit repurchases. In addition, the Credit Facility includes a sublimit of up to $20,000 for swing line loans and permits the Partnership to enter into a pari passu credit facility for the provision of letters of credit in an aggregate principal amount not to exceed $20,000 at any time. The Credit Facility also includes an accordion feature permitting increases in the commitments under the Credit Facility by an aggregate amount up to $100,000. Substantially all of the Partnership’s assets are pledged as collateral under the Credit Facility, and the Partnership and its other subsidiaries entered into guarantees of payment on behalf of Center Point for amounts outstanding under the Credit Facility.

Center Point incurred costs of $910 associated with the Credit Facility which will be amortized over the five year term of the facility. Borrowings under the Credit Facility bear interest at LIBOR plus an applicable margin. The terms of the Credit Facility contain certain covenants and conditions including an interest coverage ratio and a total leverage ratio. Center Point was in compliance with such covenants as of June 30, 2016 and December 31, 2015. In addition to interest associated with the borrowings, Center Point is obligated to pay a commitment fee calculated on the balance of the unused portion of the Credit Facility. There have not been any borrowings on the credit facility. As of June 30, 2016 and December 31, 2015, Center Point had future estimated minimum loan commitment fees of $1,290 and $1,593, respectively. Center Point incurred commitment fees, which have been recorded as interest expense, for the periods indicated as follows:

Three Months Ended June 30,				Six Months Ended June 30,
2016		2015		2016		2015
$	151	$	152	$	303	$	302

14 

Notes to Condensed Consolidated Financial Statements of World Point Terminals, LP

(Dollars in thousands, except per unit amounts)

(Unaudited)

11) ASSET RETIREMENT OBLIGATIONS

The Partnership has recorded a liability for the estimated costs of removing its terminal assets from those terminals located on leased land where the landowners have the right to require the Partnership to remove the assets. The recorded liability was $677 and $658 at June 30, 2016 and December 31, 2015, respectively, which represents the present value of the estimated costs of removal. The maximum undiscounted liability is estimated to be $10,135. This amount was discounted utilizing the Partnership’s estimated, credit adjusted risk-free rate and further adjusted by probability factors based on management’s assessment of the likelihood of being required to demolish certain assets. Should the landowners exercise their rights to require the Partnership to remove the terminal assets, the cash outflows required to settle these obligations will occur on or around lease expiration dates ranging from July 13, 2034 to February 1, 2061.

12) SEGMENT REPORTING

The Partnership derives revenues from operating its eighteen liquid bulk storage and terminal facilities. The eighteen operating segments have been aggregated into one reportable segment because the facilities have similar long-term economic characteristics, products and types of customers.

13) EMPLOYEE BENEFIT PLANS

The Partnership offers a defined contribution savings plan. Under this plan, the Partnership matches the amount of employee contributions to specified limits. The Partnership’s employee benefit plan related expenses for the periods indicated were:

Three Months Ended June 30,				Six Months Ended June 30,
2016		2015		2016		2015
$	69	$	62	$	121	$	119

14) INCOME TAXES

The Partnership’s taxable income flows through to its partners, who generally will be responsible for the appropriate taxes due on the taxable income. However, the Partnership or its subsidiaries continue to be treated as taxable entities and pay taxes in some state and local jurisdictions.

The provision for income taxes from operations consists of the following:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2016		2015		2016		2015
Current	$	43	$	22	$	92	$	30

The Partnership and its subsidiaries file income tax returns in the U.S. and various states. With few exceptions, the Partnership is no longer subject to U.S. federal, state, and local income tax examinations by tax authorities for years before 2012. As of June 30, 2016 and December 31, 2015, the Partnership did not have any unrecognized tax benefits recorded in the consolidated balance sheets.

15) RELATED PARTY TRANSACTIONS AND BALANCES

The Partnership enters into transactions with companies in which our parent, and its affiliates, are significant owners (“affiliate” or “affiliated company”). The amounts shown below have been recorded at their exchange value, which is the amount of consideration agreed to by the related parties.

Affiliated companies provide management and marketing services to the Partnership’s facilities and are reimbursed for direct and indirect costs associated with those services, which includes compensation of its employees and payment for supplies and equipment. Total charges for related party services were as follows:

15 

Notes to Condensed Consolidated Financial Statements of World Point Terminals, LP

(Dollars in thousands, except per unit amounts)

(Unaudited)

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2016		2015		2016		2015
Operating costs	$	1,015	$	653	$	1,986	$	1,386
Reimbursement for management and marketing services		574		441		1,186		891
	$	1,589	$	1,094	$	3,172	$	2,277

The Partnership earned storage revenue from affiliate companies for the periods indicated of:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2016		2015		2016		2015
Affiliate revenues	$	10,403	$	9,254	$	20,988	$	19,123

The Partnerships assets and liabilities included the following related party balances:

	June 30, 2016		December 31, 2015
Accounts receivable – affiliates	$	1,204	$	810
Prepaid insurance – affiliates		729		110
Due to affiliates		284		1,431
Deferred revenue – short-term – affiliates		1,608		802
Deferred revenue – long-term – affiliates		4,692		2,071

16) DEFERRED REVENUE

The Partnership has entered into arrangements with Apex to provide certain terminaling services at the Partnership’s facilities. The arrangements establish the pricing and require Apex to prepay for a portion of future services. The Partnership has recorded the prepayments as deferred revenue - affiliate.

The non-affiliate deferred revenue balance is related to storage service fees received in advance from terminal customers.

The following table summarizes the Partnership’s deferred revenue activity:

	June 30, 2016			December 31, 2015
Balance at January 1	$	3,127		$	1,762
Additions		4,115			2,001
Amortization		(602	)		(636	)
Balance at period end	$	6,640		$	3,127
Deferred revenue – short-term – affiliates	$	1,608		$	802
Deferred revenue – long-term	$	340		$	254
Deferred revenue – long-term - affiliates	$	4,692		$	2,071

16 

Notes to Condensed Consolidated Financial Statements of World Point Terminals, LP

(Dollars in thousands, except per unit amounts)

(Unaudited)

17) CONTINGENCIES

The Partnership is subject to extensive environmental laws and regulations in the jurisdictions in which it operates. Additionally, the Partnership has contingent liabilities with respect to other lawsuits and other potential matters arising in the ordinary course of business. In management’s opinion, the ultimate outcome of these contingencies will not have a material impact on the results of operations, cash flows or financial condition of the Partnership. As a result, the Partnership has not accrued for any loss contingencies in 2016 and 2015.

18) EQUITY-BASED COMPENSATION

The Partnership has a Long-Term Incentive Plan (the “LTIP”) for providing long-term incentives to our employees, directors and consultants who provide services to us.  The plan is administered by the board of directors of our General Partner (the “Board of Directors”).  The Board of Directors has authority to: (i) designate participants; (ii) determine types of awards; (iii) determine number of units covered by the award; (iv) determine terms and conditions of awards; (v) determine how and when awards might be settled; and (vi) interpret and administer the plan and take other such actions as might be necessary for the proper administration of the plan.  The LTIP provides for the issuance of an aggregate of up to 3,000,000 Common Units to be granted either as options, restricted units, phantom units, distribution equivalent rights, unit appreciation rights (“UARs”), unit awards, profits interest units or other unit-based award granted under the plan.  As of June 30, 2016, we have granted awards totaling 340,000 restricted units and 25,000 UARs.

The restricted units vest over three years subject to customary forfeiture provisions. Restricted units are included in the number of common units outstanding as presented on our unaudited Condensed Consolidated Balance Sheets and are entitled to cash distributions, which are nonforfeitable, on the same basis as the Common Units. The Partnership recorded non-cash compensation expense related to the restricted units as follows:

Three Months Ended June 30,				Six Months Ended June 30,
2016		2015		2016		2015
$	635	$	635	$	1,270	$	1,270

The UARs vest over five years subject to customary forfeiture provisions, and are not included in the number of common units outstanding as presented on our unaudited condensed consolidated balance sheets or entitled to cash distributions. Non-cash compensation expense related to the UARs has been estimated using the Black Scholes model. Because the UARs may be settled in units or cash at the option of the participant, they have been recorded utilizing the liability method. Non-cash compensation expense relating to the UARs was $2 for the three months ended June 30, 2016 and $1 for the six months ended June 30, 2016. The exercise price of the UARs is the fair market value of a unit on the grant date.

The following table summarizes awards granted pursuant to the LTIP through June 30, 2016. There were no forfeitures through June 30, 2016. 

	UARs Awarded		Restricted Units Awarded		Vested Units		Fair Value at Award Date
September 24, 20131		-		90,000		33,330	$	20.21
April 23, 20142		-		250,000		-	$	23.20
July 6, 20153		25,000		-		-	$	16.95

¹ Units awarded to directors of General Partner and Parent

² Units awarded to the chairman of General Partner

3 UARs awarded to an employee of the General Partner

As of June 30, 2016, the Partnership had unrecognized compensation expense of $1,727.

19) SUBSEQUENT EVENTS

On July 15, 2016 the Board of Directors declared a cash distribution of $0.30 per unit for the period from April 1, 2016 through June 30, 2016. The distribution is payable on August 12, 2016 to unitholders of record on July 28, 2016.

17 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read together with our unaudited consolidated financial statements, including the notes thereto, set forth herein. The following information and such unaudited consolidated financial statements should also be read in conjunction with our 2015 audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2015.

Cautionary Note Regarding Forward-Looking Statements

This discussion and analysis contains forward-looking statements that involve risks and uncertainties. You can identify our forward-looking statements by the words “anticipate,” “estimate,” “believe,” “budget,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “seek,” “should,” “will,” “would,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target” and similar expressions.

Without limiting the generality of the foregoing, these statements are based on certain assumptions made by the Partnership based on management’s experience, expectations and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Accordingly, our actual outcomes and results may differ materially from what we have expressed or forecast in the forward-looking statements. Any differences could result from a variety of factors, including the following:

· the volumes of light refined products, heavy refined products and crude oil we handle;

· the terminaling and storage fees with respect to volumes that we handle;

· damage to pipelines facilities, related equipment and surrounding properties caused by hurricanes, earthquakes, floods, fires, severe weather, explosions and other natural disasters and acts of terrorism;

· leaks or accidental releases of products or other materials into the environment, whether as a result of human error or otherwise;

· planned or unplanned shutdowns of the refineries and industrial production facilities owned by or supplying our customers;

· prevailing economic and market conditions;

· difficulties in collecting our receivables because of credit or financial problems of customers;

· fluctuations in the prices for crude oil and refined petroleum products;

· liabilities associated with the risks and operational hazards inherent in gathering, storing, handling and transporting crude oil and refined petroleum products;

· curtailment of operations due to severe weather disruption; riots, strikes, lockouts or other industrial disturbances; or failure of information technology systems due to various causes, including unauthorized access or attack;

· costs or liabilities associated with federal, state, and local laws and regulations relating to environmental protection and safety, including spills, releases and pipeline integrity;

· costs associated with compliance with evolving environmental laws and regulations on climate change; and

· other factors discussed below and elsewhere in “Risk Factors” in our 2015 Form 10-K.

When considering forward-looking statements, you should keep in mind the known material risk factors and other cautionary statements set forth in our Annual Report on Form 10-K for the year ended December 31, 2015 in Part 1, Item 1A,“Risk Factors.” Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether because of new information, future events or otherwise.

18 

Overview of Business

We are a fee-based, growth-oriented Delaware limited partnership formed to own, operate, develop and acquire terminals and other assets relating to the storage of light refined products, heavy refined products and crude oil. Our storage terminals are strategically located in the East Coast, Gulf Coast and Midwest regions of the United States and, as of June 30, 2016, had a combined available storage capacity of 15.5 million barrels. On January 1, 2015, we acquired a terminal in Greensboro, North Carolina (0.7 million barrels), increasing our storage capacity 5%. On September 14, 2015, we acquired a terminal in Salisbury, Maryland (0.2 million barrels), increasing our storage capacity an additional 1%. Most of our terminal facilities are strategically located on major waterways, providing ship or barge access for the movement of petroleum products, and have truck racks with efficient loading logistics. Several of our terminal facilities also have rail or pipeline access.

The following discussion analyzes our financial condition and results of operations and should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2015, as well as historical condensed consolidated financial statements and notes included elsewhere in this Quarterly Report.

Recent Developments

We have recently completed construction of two tanks totaling 178,000 barrels of capacity at our North Little Rock terminal and expect to place the tanks in service during the third quarter of 2016.

On September 14, 2015, we acquired a terminal in Salisbury, Maryland with a storage capacity of 177,000 barrels for the storage of gasoline, ultra-low-sulfur-diesel, heating oil and ethanol. The terminal was purchased for $1.0 million and is served by truck and barge. Approximately 83% of the terminal capacity is under contract with Apex Oil Company, Inc. (“Apex”) through at least September 30, 2018.

On January 1, 2015, we acquired a terminal in Greensboro, North Carolina with a storage capacity of 684,000 barrels for the storage of gasoline, distillate, biodiesel and jet fuel. The terminal is served by truck and the Colonial Pipeline. We entered into a contribution agreement with Apex and one of its subsidiaries whereby we issued 1,550,000 common units to Apex in exchange for the terminal. Based on the closing price of our common units on December 31, 2014, the value of the units issued represented approximately $31.2 million in total consideration.

How We Generate Revenues

We operate in a single reportable segment consisting primarily of the fee-based storage and terminaling services we perform under contracts with our customers. We generally do not take title to the products we store or handle on behalf of our customers. For each of the six months ended June 30, 2016 and 2015, we generated approximately 84% and 83%, respectively, of our revenue from storage services fees. Of our revenue for the six months ended June 30, 2016 and 2015, approximately 83% and 81%, respectively, consisted of base storage services fees, which are fixed monthly fees paid at the beginning of each month to reserve dedicated tanks or storage space and to compensate us for handling up to a base amount of product volume at our terminals. Our customers are required to pay these base storage services fees to us regardless of the actual storage capacity they use or the volume of products that we receive. Our customers also pay us excess storage fees for volumes handled in excess of the amount attributable to their base storage services fees. The remainder of our revenues were generated from (1) ancillary fees for services such as heating, mixing and blending products, transferring products between tanks, rail car loading and dock operations and (2) fees for injecting additives, some of which are mandated by federal, state and local regulations.

19 

Refiners typically use our terminals because they prefer to subcontract terminaling and storage services or their facilities do not have adequate storage capacity, dock infrastructure or do not meet specialized handling requirements for a particular product. We also provide storage services to distributors, marketers and traders that require access to large, strategically located storage capacity in close proximity to demand markets, export markets, transportation infrastructure and refineries. Our combination of geographic location, efficient and well maintained storage assets and access to multiple modes of transportation gives us the flexibility to meet the evolving demands of our existing customers, as well as the demands of prospective customers seeking terminaling and storage services throughout our areas of operation.

As of June 30, 2016, approximately 92% of our total available storage capacity was under contract. During the five years ended December 31, 2015, more than 91% of our available storage capacity has been under contract, on average. While many of our contracts provide for a termination right after the expiration of the initial contract period, our long-standing relationships with our customers, including major integrated oil companies, have provided stable revenue. Our top ten customers including Apex, which represent approximately 82% of our revenue for the six months ended June 30, 2016, have used our services for an average of more than ten years.

Factors That Impact Our Business

The revenues generated by our storage business are generally driven by our aggregate storage capacity under contract, the commercial utilization of our terminal facilities in relation to their capacity and the prices we receive for our services, which in turn are driven by the demand for the products being shipped through or stored in our facilities. Though substantially all of our terminal service agreements require a customer to pay for tank capacity regardless of use, our revenues can be affected by (1) the length of the underlying service contracts and pricing changes and shifts in the products handled when the underlying storage capacity is recontracted, (2) fluctuations in product volumes to the extent revenues under the contracts are a function of the amount of product stored or transported, (3) changes in demand for additive services, (4) inflation adjustments in storage services contracts and (5) changes in the demand for ancillary services such as product heating, mixing or blending, transferring our customers’ products between our tanks, rail car loading and dock operations.

We believe key factors that influence our business are (1) the long-term demand for and supply of refined products and crude oil, (2) the indirect impact that changes in refined product and crude oil pricing has on terminal and storage demand and supply, (3) the needs of our customers together with the competitiveness of our service offerings with respect to location, price, reliability and flexibility and (4) our ability and the ability of our competitors to capitalize on growth opportunities and changing market dynamics.

Supply and Demand for Refined Products and Crude Oil

Our results of operations are dependent upon the volumes of refined products and crude oil we have contracted to handle and store and, to a lesser extent, on the actual volumes of refined products and crude oil we handle and store for our customers. An important factor in such contracting is the amount of production and demand for refined products and crude oil. The production of and demand for refined products and crude oil are driven by many factors, including the price for crude oil and general economic conditions. To the extent practicable and economically feasible, we generally attempt to mitigate the risk of reduced volumes and pricing by negotiating contracts with minimum payments based on available capacity and with multi-year terms. However, an increase or decrease in the demand for refined products and crude oil in the areas served by our terminals will have a corresponding effect on (1) the volumes we actually terminal and store and (2) the volumes we contract to terminal and store if we are not able to extend or replace our existing customer contracts.

20 

Refined Product and Crude Oil Prices

Because we generally do not own the refined products or crude oil that we handle and do not engage in the trading of refined products or crude oil, we have minimal direct exposure to risks associated with fluctuating commodity prices. In addition, extended periods of depressed or elevated refined product and crude oil prices can lead producers to increase or decrease production of refined products and crude oil, which can impact supply and demand dynamics.

Effective January 1, 2016 we entered into a profit sharing agreement with Apex at one of our terminals. In addition to the base storage services fees, we receive a percentage of the profit Apex realizes on the stored product. The profit sharing revenues received under this arrangement could be affected by changes in the commodity price as well as other market factors such as demand for the commodity. Profit sharing revenues of $0.2 million were generated during the six months ended June 30, 2016.

If the future prices of refined products and crude oil are substantially higher than the then-current prices, also called market contango, our customers’ demand for excess storage generally increases. If the future prices of refined products and crude oil are lower than the then-current prices, also called market backwardation, our customers’ demand for excess storage capacity generally decreases. We seek to mitigate the impact of near-term commodity market price dynamics by generally entering into long-term agreements with our customers that have significant base storage services fee components. However, the market has experienced long periods of contango and backwardation that can impact the demand for and supply of refined product and crude oil terminaling and storage services.

Customers and Competition

We provide storage and terminaling services for a broad mix of customers, including major integrated oil companies, marketers, distributors and chemical and petrochemical companies. In general, the mix of services we provide to our customers varies depending on market conditions, expectations for future market conditions and the overall competitiveness of our service offerings. The terminaling and storage markets in which we operate are very competitive, and we compete with operators of other terminaling facilities on the basis of rates, terms of service, types of service, supply and market access and flexibility and reliability of service. In addition, we also compete with major integrated oil companies, many of whom are also our customers, that own terminals. We continuously monitor the competitive environment, the evolving needs of our customers, current and forecasted market conditions and the competitiveness of our service offerings in order to maintain the proper balance between optimizing near-term earnings and cash flow and positioning the business for sustainable long-term growth. Because of the significant investments we have made in maintaining high quality assets and because terminaling and storage are our core business, we believe that we can be more flexible and responsive to the needs of our customers than many of our competitors.

Organic Growth Opportunities

Regional refined products and crude oil supply and demand dynamics shift over time, which can lead to rapid and significant increases in demand for terminaling and storage services. At such times, we believe the terminaling companies that have positioned themselves for organic growth will be at a competitive advantage in capitalizing on the shifting market dynamics. Where feasible, we have designed the infrastructure at our terminals to facilitate future expansion, which we expect to both reduce our overall capital costs per additional barrel of storage capacity and shorten the duration and enhance the predictability of development timelines. Some of the specific infrastructure investments we have made that will facilitate incremental expansion include dock capacity capable of handling various products and easily expandable piping and manifolds to handle additional storage capacity. Our Galveston terminal has over fifty acres of available land that will allow us to greatly increase our storage capacity should market conditions warrant. Accordingly, we believe that we are well positioned to grow organically in response to changing market conditions.

21 

We have recently completed construction of two tanks totaling 178,000 barrels of capacity at our North Little Rock terminal and expect to place the tanks in service during the third quarter of 2016.

Factors Impacting the Comparability of Our Financial Results

Our future results of operations may not be comparable to our historical results of operations for the following reasons:

· In June 2014 when we acquired the Chickasaw terminal all of the acquired tankage was not available for use. Some additional tankage has been made available for service and additional tankage is expected to be made available in future reporting periods.

· In June 2014 when we acquired the Blakeley Island terminal all of the acquired tankage was not available for use. The Blakeley Island terminal had no customers when it was acquired and had no revenue in 2014. Beginning in January 2015, a portion of the tankage was placed under contract and additional tankage is expected to be available for service in future reporting periods.

· We acquired the Salisbury terminal September 14, 2015, and did not have any customers until October 1, 2015, and therefore we received no revenue from that facility prior to the fourth quarter of 2015.

Overview of Our Results of Operations

Our management uses a variety of financial measurements to analyze our performance, including the following key measures:

· revenues derived from (i) storage services fees, including excess storage services fees, (ii) ancillary services and (iii) additive services; and

· our operating and selling, general and administrative expenses.

We do not utilize depreciation and amortization expense in our key measures because we focus our performance management on cash flow generation and our assets have long useful lives. In our period to period comparisons of our revenues and expenses set forth below, we analyze the following revenue and expense components:

Revenues

We characterize our revenues into three different types, as follows:

Storage Services Fees. Our customers pay base storage services fees, which are fixed monthly fees paid at the beginning of each month to reserve storage capacity in our tanks and to compensate us for receiving up to a base product volume on their behalf. Our customers are required to pay these base storage services fees to us regardless of the actual storage capacity they use or the amount of product that we receive. Our customers also pay us additional fees when we handle product volume on their behalf that exceeds the volume contemplated in their monthly base storage services fee.

Ancillary Services Fees. We charge ancillary services fees to our customers for providing services such as (i) heating, mixing and blending our customers’ products that are stored in our tanks, (ii) transferring our customers’ products between our tanks, (iii) at our Granite City terminal, adding polymer to liquid asphalt and (iv) rail car loading and dock operations. The revenues we generate from ancillary services fees vary based upon the activity levels of our customers.

Additive Services Fees. We generate revenue from fees for injecting generic gasoline, proprietary gasoline, lubricity, red dye and cold flow additives to our customers’ products. Certain of these additives are mandated by applicable federal, state and local regulations for all light refined products, and other additives, such as cold flow additive, are required to meet customer specifications. The revenues we generate from additive services fees vary based upon the activity levels of our customers.

22 

Operating Expenses

Our operating expenses are comprised primarily of labor expenses, utility costs, insurance premiums, repairs and maintenance expenses, environmental compliance and property taxes. A large portion of these operating expenses are fixed, but can fluctuate from period to period depending on the mix of activities performed during that period and the timing of these expenses. We seek to manage our maintenance expenses by scheduling maintenance over time to avoid significant variability in our maintenance expenses and minimize their impact on our cash flow.

Selling, General and Administrative Expenses

Selling, general and administrative expenses include costs not directly attributable to the operations of our facilities and include costs such as professional services, compensation of non-operating personnel and expenses of the overall administration of the Partnership. We incur additional personnel and related costs and incremental external general and administrative expenses as a result of being a publicly traded partnership, including costs associated with SEC reporting requirements, tax return and Schedule K-1 preparation and distribution, registered independent auditor fees, investor relations activities, Sarbanes-Oxley Act compliance, stock exchange listing, registrar and transfer agent fees, incremental director and officer liability insurance and director compensation.

23 

Results of Operations

The following tables and discussion are a summary of our results of operations for the periods indicated:

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2016			2015			2016			2015
	(Dollars in thousands)
REVENUES
Third parties	$	14,707		$	15,183		$	28,687		$	30,457
Affiliates		10,403			9,254			20,988			19,123
		25,110			24,437			49,675			49,580
Operating costs, expenses and other
Operating expenses		7,247			7,324			13,881			14,650
Operating expenses reimbursed to affiliates		1,015			653			1,986			1,386
Selling, general and administrative expenses		850			923			1,891			1,960
Selling, general and administrative expenses reimbursed to affiliates		574			441			1,186			891
Depreciation and amortization		5,984			6,285			11,893			12,458
Income from joint venture		(197	)		(61	)		(417	)		(170	)
Total operating costs, expenses and other		15,473			15,565			30,420			31,175
INCOME FROM OPERATIONS		9,637			8,872			19,255			18,405
OTHER INCOME (EXPENSE)
Interest expense		(207	)		(206	)		(414	)		(411	)
Interest and dividend income		54			92			110			177
Gain (loss) on investments and other-net		121			(162	)		125			(68	)
Income before income taxes		9,605			8,596			19,076			18,103
Provision for income taxes		43			22			92			30
NET INCOME	$	9,562		$	8,574		$	18,984		$	18,073
Operating Data:
Available storage capacity, end of period (mbbls)		15,452			15,275			15,452			15,275
Average daily terminal throughput (mbbls)		167			194			157			193

The following table details the types and amounts of revenues generated for the periods indicated:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2016		2015		2016		2015
	(in thousands)
Storage services fees:
Base storage services fees	$	20,949	$	19,810	$	41,244	$	40,335
Excess storage services fees		271		306		366		615
Ancillary services fees		3,207		3,660		6,524		7,066
Additive services fees		683		661		1,541		1,564
Revenue	$	25,110	$	24,437	$	49,675	$	49,580

24 

The following table details the types and amounts of our operating expenses for the periods indicated:

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2016			2015			2016			2015
	(in thousands)
Operating expenses:
Labor	$	3,431		$	3,462		$	6,691		$	6,775
Utilities		1,207			1,169			2,507			2,406
Insurance premiums		397			515			833			1,024
Repairs and maintenance		1,046			1,138			1,870			2,269
Property taxes		676			637			1,344			1,265
Other		1,505			1,056			2,622			2,297
Total operating expenses	$	8,262		$	7,977		$	15,867		$	16,036
Less operating expenses reimbursed to affiliates		(1,015	)		(653	)		(1,986	)		(1,386	)
Operating expenses	$	7,247		$	7,324		$	13,881		$	14,650

Three Months Ended June 30, 2016 Compared to Three Months Ended June 30, 2015

Revenues. Revenues for the three months ended June 30, 2016 increased $0.7 million, or 3%, compared to the three months ended June 30, 2015.

Storage Services Fees. Storage services fees increased $1.1 million, or 5%, for the three months ended June 30, 2016 compared to the three months ended June 30, 2015.

· Base storage services fees. Base storage services fees for the three months ended June 30, 2016 increased $1.1 million, or 6%, from the three months ended June 30, 2015, primarily as a result of the addition of new customers at the Blakeley Island terminal and Galveston terminals, increased terminaling activity at the Glenmont terminal and the addition of the Salisbury terminal in the fourth quarter of 2015, partially offset by reduced base storage fees at the St. Louis terminal.

· Excess storage services fees. Excess storage services fees for the three months ended June 30, 2016 decreased slightly compared to the three months ended June 30, 2015.

Ancillary and Additive Services Fees. Ancillary and additive services for the three months ended June 30, 2016 decreased $0.4 million, or 10%, compared to the three months ended June 30, 2015, primarily as a result of reduced polymer processing activity at the Granite City terminal caused by a disruption in the Keystone Pipeline.

Operating Expenses. Total operating expenses for the three months ended June 30, 2016 increased $0.3 million, or 4%, compared to the three months ended June 30, 2015. This increase was primarily attributable to a (i) $0.4 million increase in other expense due to environmental compliance costs incurred at the Newark terminal, and (ii) $0.1 million increase in property taxes and utilities, offset by a (i) $0.1 million decrease in insurance expense and (ii) $0.1 million decrease in repairs and maintenance primarily due to periodic tank cleaning and repairs completed in the second quarter of 2015.

Selling, General and Administrative Expenses. Selling, general and administrative expenses, including reimbursements to affiliates, for the three months ended June 30, 2016 increased $0.1 million, or 4%, compared to the three months ended June 30, 2015 primarily as a result of higher audit and tax preparation fees in 2016.

Depreciation and Amortization Expense. Depreciation and amortization expense for the three months ended June 30, 2016 decreased $0.3 million, or 5%, compared to the three months ended June 30, 2015. This decrease is primarily due to terminal assets that became fully depreciated in December of 2015 and January of 2016 at the Baltimore and Newark terminals.

25 

Interest Expense. Interest expense for the three months ended June 30, 2016 increased slightly compared to the three months ended June 30, 2015.

Interest and Dividend Income. Interest and dividend income for the three months ended June 30, 2016 decreased slightly compared to the three months ended June 30, 2015. This decrease was attributable to lower amounts of short-term investments held during the second quarter of 2016.

Gain (Loss) on Investments and Other—Net. Gain (loss) on investments for the three months ended June 30, 2016 increased $0.3 million compared to the three months ended June 30, 2015. The increase was primarily attributable to a mark-to market gain on investments recorded at June 30, 2016 as opposed to a small loss at June 30, 2015.

Income Tax Expense. Income tax expense for the three months ended June 30, 2016 increased slightly compared with the three months ended June 30, 2015.

Net Income. Net income for the three months ended June 30, 2016 increased $1.0 million, or 12%, compared to the three months ended June 30, 2015.

Average Daily Terminal Throughput. Average daily terminal throughput for the three months ended June 30, 2016 decreased 27 mbbls or, 14%, compared to the three months ended June 30, 2015 primarily as a result of decreased throughput at the Galveston and Weirton terminals.

Six months Ended June 30, 2016 Compared to Six months Ended June 30, 2015

Revenues. Revenues for the six months ended June 30, 2016 increased $0.1 million, or less than 1%, compared to the six months ended June 30, 2015.

Storage Services Fees. Storage services fees increased $0.7 million, or 2%, for the six months ended June 30, 2016 compared to the six months ended June 30, 2015.

· Base storage services fees. Base storage services fees for the six months ended June 30, 2016 increased $0.9 million, or 2%, from the six months ended June 30, 2015, primarily as a result of additional tanks at the Blakeley Island terminal that were placed under contract during the first half of 2016, increased terminaling activity at the Glenmont terminal, and the addition of the Salisbury terminal in the fourth quarter of 2015, partially offset by reduced base storage fees at the St. Louis terminal.

· Excess storage services fees. Excess storage services fees decreased $0.2 million, or 40%, for the six months ended June 30, 2016 compared to the six months ended June 30, 2015.

Ancillary and Additive Services Fees. Ancillary and additive services for the six months ended June 30, 2016 decreased $0.6 million, or 7%, compared to the six months ended June 30, 2015, primarily as a result of reduced polymer processing activity at the Granite City terminal caused by a disruption in the Keystone Pipeline, reduced barge loading fees at the Newark terminal and reduced heating fees at the Pine Bluff terminal.

Operating Expenses. Total operating expenses for the six months ended June 30, 2016 decreased $0.2 million, or 1%, compared to the six months ended June 30, 2015. This decrease was primarily attributable to a (i) $0.4 million decrease in repairs and maintenance primarily due to periodic tank cleaning and repairs completed in the first half of 2015, (ii) $0.1 million decrease in labor costs, and (iii) $0.2 million decrease in insurance expense, offset by a (i) $0.3 million increase in other expense due to $0.4 million in environmental compliance costs incurred at the Newark terminal offset by $0.1 million in operational efficiencies achieved at the Chickasaw terminal, and (ii) $0.2 million increase in property taxes and utilities.

26 

Selling, General and Administrative Expenses. Selling, general and administrative expenses, including reimbursements to affiliates, for the six months ended June 30, 2016 increased $0.2 million, or 8%, compared to the six months ended June 30, 2015 as a result of a (i) $0.3 million increase in audit and tax preparation expenses and (ii) $0.1 million increase in directors’ fees, offset by a $0.2 million decrease in insurance and professional fees.

Depreciation and Amortization Expense. Depreciation and amortization expense for the six months ended June 30, 2016 decreased $0.6 million, or 5%, compared to the six months ended June 30, 2015. This decrease is primarily due to terminal assets that became fully depreciated in December of 2015 and January of 2016 at the Baltimore and Newark terminals.

Interest Expense. Interest expense for the six months ended June 30, 2016 increased slightly compared to the six months ended June 30, 2015.

Interest and Dividend Income. Interest and dividend income for the six months ended June 30, 2016 decreased $0.1 million compared to the six months ended June 30, 2015. This decrease was attributable to lower amounts of short-term investments held during the first half of 2016.

Gain (Loss) on Investments and Other—Net. Gain (loss) on investments for the six months ended June 30, 2016 increased $0.2 million compared to the six months ended June 30, 2015. The increase was primarily attributable to a mark-to market gain on investments recorded at June 30, 2016 as opposed to a small loss at June 30, 2015.

Income Tax Expense. Income tax expense for the six months ended June 30, 2016 increased slightly compared with the six months ended June 30, 2015.

Net Income. Net income for the six months ended June 30, 2016 increased $1.0 million, or 5%, compared to the six months ended June 30, 2015.

Average Daily Terminal Throughput. Average daily terminal throughput for the six months ended June 30, 2016 decreased 36 mbbls or, 19%, compared to the six months ended June 30, 2015 primarily as a result of decreased throughput at the Galveston, Newark and Weirton terminals.

Non-GAAP Financial Measure. In addition to the GAAP results provided in this quarterly report on Form 10-Q, we provide a non-GAAP financial measure, Adjusted EBITDA. A reconciliation from the most directly comparable GAAP financial measures to the non-GAAP measurement is provided below. We define Adjusted EBITDA as net income (loss) before net interest expense, income tax expense, depreciation and amortization expense and equity based compensation expense as further adjusted to remove gain or loss on investments and on the disposition of assets and non-recurring items.

Adjusted EBITDA is a non-GAAP supplemental financial measure that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:

· 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 in various opportunities.

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We believe that the presentation of Adjusted EBITDA will provide useful information to investors in assessing our financial condition and results of operations. The GAAP measures most directly comparable to Adjusted EBITDA are net income and net cash provided by operating activities. Our non-GAAP financial measure of Adjusted EBITDA should not be considered as an alternative to GAAP net income or net cash provided by operating activities. Adjusted EBITDA has important limitations as an analytical tool because it excludes some but not all items that affect net income. You should not consider Adjusted EBITDA in isolation or as a substitute for analysis of our results as reported under GAAP. Because Adjusted EBITDA may be defined differently by other companies in our industry, our definition of Adjusted EBITDA may not be comparable to similarly titled measures of other companies, thereby diminishing its utility.

The following table presents a reconciliation of Adjusted EBITDA to the most directly comparable GAAP financial measures for each of the periods indicated:

	For the Three Months Ended June 30,						For the Six months Ended June 30,
	2016			2015			2016			2015
	(in thousands)
Reconciliation of Net Income to Adjusted EBITDA:
Net income	$	9,562		$	8,574		$	18,984		$	18,073
Depreciation and amortization		5,984			6,285			11,893			12,458
Depreciation and amortization – CENEX joint venture		129			113			258			223
Provision for income taxes		43			22			92			30
Interest expense		207			206			414			411
Interest and dividend income		(54	)		(92	)		(110	)		(177	)
Equity based compensation expense		637			635			1,271			1,270
(Gain) loss on investments and other - net		(121	)		162			(125	)		68
Adjusted EBITDA	$	16,387		$	15,905		$	32,677		$	32,356
Reconciliation of net cash provided by operating activities to Adjusted EBITDA:
Net cash flows from operating activities	$	19,423		$	15,568		$	31,000		$	28,438
Changes in assets and liabilities that provided cash		(3,469	)		91			742			3,383
Amortization of deferred financing costs		(46	)		(46	)		(92	)		(92	)
Income from CENEX joint venture		197			61			417			170
Depreciation and amortization – CENEX joint venture		129			113			258			223
Provision for income taxes		43			22			92			30
Interest expense		207			206			414			411
Interest and dividend income		(54	)		(92	)		(110	)		(177	)
Realized gain (loss) on investments and other – net		(43	)		(18	)		(44	)		(30	)
Adjusted EBITDA	$	16,387		$	15,905		$	32,677		$	32,356

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Liquidity and Capital Resources

Liquidity

Our principal liquidity requirements are to finance current operations, fund capital expenditures, including acquisitions from time to time, and to service our debt. Our sources of liquidity include cash generated by our operations, borrowings under our revolving credit facility and issuances of equity and debt securities. We believe that cash generated from these sources will be sufficient to meet our short-term working capital requirements and long-term capital expenditure requirements.

Revolving Credit Facility

On August 14, 2013, we entered into a $200 million senior secured revolving credit facility. The revolving credit facility is available to fund working capital and to finance acquisitions and other capital expenditures. Our obligations under the revolving credit facility are secured by a first priority lien on substantially all of our assets. Borrowings under our revolving credit facility bear interest at a rate equal to LIBOR plus an applicable margin. LIBOR and the applicable margin are defined in our revolving credit facility. The unused portion of the revolving credit facility is subject to an annual commitment fee.

The revolving credit facility contains covenants and conditions that, among other things, limit our ability to make cash distributions, incur indebtedness, create liens, make investments and enter into a merger or sale of substantially all of our assets. We are also subject to certain financial covenants, including a consolidated leverage ratio and an interest coverage ratio, and customary events of default under the revolving credit facility. We were in compliance with such covenants as of June 30, 2016.

Capital Expenditures

The terminaling and storage business is capital-intensive, requiring significant investment for the maintenance of existing assets and the acquisition or development of new systems and facilities. We categorize our capital expenditures as either:

· maintenance capital expenditures, which are cash expenditures (including expenditures for the construction or development of new capital assets or the replacement, improvement or expansion of existing capital assets) made to maintain our long-term operating capacity or operating income; or

· expansion capital expenditures, which are cash expenditures incurred for acquisitions or capital improvements that we expect will increase our operating capacity or operating income over the long term.

For the six months ended June 30, 2016, our capital expenditures were $11.5 million. Our capital spending program is focused on expanding our existing terminals where sufficient demand exists for our services and maintaining our facilities. Capital expenditure plans are generally evaluated based on regulatory requirements, return on investment and estimated incremental cash flow. We develop annual capital spending plans based on historical trends for maintenance capital, plus identified projects for expansion, technology and revenue-generating capital. In addition to the annually recurring capital expenditures, potential acquisition opportunities are evaluated based on their anticipated return on invested capital, accretive impact to operating results, and strategic fit.

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Our capital expenditures for the periods indicated were as follows:

	For the Three Months Ended June 30,				For the Six months Ended June 30,
	2016		2015		2016		2015
	(in thousands)
Maintenance capital expenditures	$	2,198	$	2,731	$	3,871	$	3,828
Expansion capital expenditures		3,972		3,082		7,651		7,300
Total	$	6,170	$	5,813	$	11,522	$	11,128

Of the $7.7 million of expansion capital expenditures during the first six months of 2016, $1.0 million was used to modify terminal assets in order to have the ability to accept additional products from customers and $6.7 million was used to add additional capacity at our terminals, including $4.7 million used to bring additional tanks into service at the Chickasaw and Blakeley Island terminals and $2.0 million used to construct additional tanks at the North Little Rock terminal. During the quarter ended June 30, 2016 all capital expenditures were funded from operations.

We anticipate that maintenance capital expenditures will continue to be funded primarily with cash from operations. We expect that we will utilize external financing sources, including borrowings under our revolving credit facility and the issuance of debt and equity securities, in addition to cash from operations to fund some of our future expansion capital expenditures.

Cash Flows

Six months Ended June 30, 2016 Compared to Six months Ended June 30, 2015

Net cash provided by (used in) operating activities, investing activities and financing activities for the six months ended June 30, 2016 and 2015 were as follows:

	Six months Ended June 30,
	2016			2015
	(in thousands)
Net cash provided by operating activities	$	31,000		$	28,438
Net cash used in investing activities	$	(10,306	)	$	(9,385	)
Net cash used in financing activities	$	(20,916	)	$	(20,916	)

Cash Flows From Operating Activities. Net cash flows from operating activities for the six months ended June 30, 2016 increased $2.6 million, compared to the six months ended June 30, 2015. The increase was primarily attributable to a (i) $1.7 million increase in cash generated from working capital, (ii) $1.2 million increase in the change in long-term deferred revenue and other liabilities and (iii) $0.9 million increase in net income, offset by a (i) $0.6 million decrease in depreciation, (ii) $0.2 million decrease in income from joint venture, (iii) $0.2 million decrease in the loss on investments, and (iv) $0.2 million decrease in the change in prepaid insurance

Cash Flows From Investing Activities. Net cash flows used in investing activities for the six months ended June 30, 2016 increased $0.9 million, or 10%, compared to the six months ended June 30, 2015. This increase was primarily attributable to a (i) $1.8 million decrease in cash proceeds for the sale of short-term investments and (ii) $0.4 million increase in capital expenditures, offset by a (i) $1.2 million distribution received from the CENEX joint venture and (ii) decrease in purchase of short-term investments of $0.1 million.

30 

Cash Flows From Financing Activities. Cash flows used in financing activities consist of distributions paid to our unitholders totaling $20.9 million for each of the six months ended June 30, 2016 and June 30, 2015.

Contractual Obligations

We have contractual obligations that are required to be settled in cash. Our contractual obligations as of

June 30, 2016 were as follows:

	Payments Due by Period
	(in thousands)
	Total		Less than 1 year		1-3 years		4-5 years		More than 5 years
Unrecorded contractual obligations:
Loan commitment fee	$	1,290	$	608	$	682	$	-	$	-
Operating lease obligations		1,943		592		1,088		263		-
Total	$	3,233	$	1,200	$	1,770	$	263	$	-

Future Trends and Outlook

We expect that certain trends and economic or industry-wide factors will continue to affect our business, both in the short and long term. We have based our expectations described below on assumptions made by us and on the basis of information currently available to us. To the extent our underlying assumptions about or interpretation of available information prove to be incorrect, our actual results may vary materially from our expected results. Please read “Risk Factors” for additional information about the risks associated with purchasing our common units.

Existing Base Storage Contracts

Some of our terminal services agreements currently in effect are operating in the automatic renewal phase of the contract that begins upon the expiration of the primary contract term. While a significant portion of our tankage may only be subject to a one year commitment, historically these customers have continued to renew or expand their business. Our top ten customers have used our services for an average of more than ten years.

During 2015, some customers did not renew their contracts. As a result, approximately 580,000 barrels of tankage was placed under “spot” (month-to-month) contracts at the Galveston terminal. During the second quarter of 2016, some spot contracts were terminated. As of June 30, 2016, 203,000 barrels of tankage remain under spot contracts, and 421,000 barrels of tankage are unutilized at the Galveston terminal. There is no certainty that we will be able to keep the remaining tanks under contract throughout 2016. In addition, there is no certainty that contracts expiring in 2016 will be extended or that any extension or recontracting will result in the same level of revenue to the Partnership.

The following table details the base storage services fees expected to be generated over the next five years ending December 31, 2020 based on remaining contract terms at June 30, 2016 excluding any consumer price index adjustments.

Year ending December 31,	Expected Revenue under Base Storage Contracts
	(in thousands)
2016	$	31,391
2017		49,407
2018		14,955
2019		7,585
2020		3,383

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Supply of Storage Capacity

An important factor in determining the value of storage capacity and therefore the rates we are able to charge for new contracts or contract renewals is whether a surplus or shortfall of storage capacity exists relative to the overall demand for storage services in a given market area. We monitor local developments around each of our facilities closely. We believe that significant barriers to entry exist in the refined product and crude oil terminaling and storage business. These barriers include significant costs and execution risk, a lengthy permitting and development cycle, shortage of personnel with the requisite expertise and the finite number of sites that are suitable for development.

Entry of Competitors into the Markets in Which We Operate

The competitiveness of our service offerings could be significantly impacted by the entry of new competitors into the markets in which our terminals operate. We believe that significant barriers to entry exist in the refined products and crude oil terminaling and storage business, particularly for marine terminals. These barriers include significant costs and execution risk, a lengthy permitting and development cycle, such as environmental permitting, financing challenges, shortage of personnel with the requisite expertise and the finite number of sites with comparable connectivity suitable for development. Despite these barriers, there has been significant new construction of residual fuel storage facilities along the Gulf Coast in recent years, which we believe may account for the need to utilize spot storage at the Galveston terminal.

Economic Conditions

The condition of credit markets may adversely affect our liquidity. In the recent past, world financial markets experienced a severe reduction in the availability of credit. Although we were not substantially impacted by this situation because of the long-term nature of our customer contracts, possible negative impacts in the future could include a decrease in the availability of credit. In addition, we could experience a tightening of trade credit from our suppliers and our customers’ businesses may be affected by their access to credit.

Growth Opportunities

We expect to expand the storage capacity at our current terminal facilities over the near and medium term. In addition, we will selectively pursue strategic asset acquisitions from Apex and third parties that complement our existing asset base or provide attractive potential returns in new areas within our geographic footprint. Our long-term strategy includes operating fee-based, qualifying income producing infrastructure assets throughout North America. Recent evidence of this strategy includes the January 2015 acquisition of the Greensboro, North Carolina terminal from Apex, as well as the September 2015 acquisition of the Salisbury, Maryland terminal and the construction of additional tanks at our North Little Rock terminal. We believe that we will be well positioned to acquire assets from third parties should such opportunities arise, and identifying and executing acquisitions will be a key part of our strategy. However, if we do not make acquisitions on economically acceptable terms, our future growth will be limited, and it is possible that any acquisitions we do make will reduce, rather than increase, our cash available for distribution per unit.

Demand for Refined Products and Crude Oil

In the near-term, we expect demand for refined products and crude oil to remain stable. Even if demand for refined products and crude oil decreases sharply, however, our historical experience during recessionary periods has been that our results of operations are not materially impacted in the near term. We believe this is because of several factors, including: (i) we mitigate the risk of reduced volumes and pricing by negotiating contracts with minimum payments based on available capacity and with multi-year terms; as more of our contracts convert to annual agreements, some of that mitigation is lost, and (ii) sharp decreases in demand for refined products and crude oil generally increase the short and medium-term need for storage of those products, as customers search for buyers at appropriate prices. While the recent decline in the prices of crude oil and petroleum prices may affect demand for those products and related demand for storage capacity, we believe it is too soon to draw any conclusions as to what effect there may be on our business.

32 

Off-Balance Sheet Arrangements

Other than the unrecorded contractual obligations noted above, we do not have any off-balance sheet arrangements.

Critical Accounting Policies and Estimates

As of June 30, 2016, there have been no significant changes to our critical accounting policies and estimates disclosed in the Partnership’s 2015 Annual Report on Form 10-K.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Market risk is the risk of loss arising from adverse changes in market rates and prices. We do not take title to the crude oil, refined petroleum products and other products we handle and store, and therefore, we do not have direct exposure to risks associated with fluctuating commodity prices. In addition, our terminal services agreements with our storage customers are generally indexed to inflation and may contain fuel surcharge provisions designed to substantially mitigate our exposure to increases in fuel prices and the cost of other supplies used in our business.

At June 30, 2016, we did not have any borrowing under our revolving credit facility, which carries a variable rate. We may use certain derivative instruments to hedge our exposure to variable interest rates in the future, but we do not currently have in place any risk management contracts.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of management of our general partner, including the general partner’s Chief Executive Officer and Chief Financial Officer, an evaluation of the Partnership’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), was conducted as of the end of the period covered by this report. Based on this evaluation, management of our general partner concluded that the Partnership’s disclosure controls and procedures as of the period covered by this report were effective to ensure that the information required to be disclosed by us in the reports we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during our last fiscal quarter that materially affected, or were reasonably likely to materially affect, our internal control over financial reporting.

PART II

OTHER INFORMATION

Item 1. Legal Proceedings.

We are not a party to, nor is any of our property subject to, any material pending legal proceedings, other than ordinary routine litigation incidental to our business. However, from time to time, we may be a party to, or a target of, lawsuits, claims, investigations, and proceedings, including product liability, personal injury, asbestos, patent and intellectual property, commercial, contract, environmental, antitrust, health and safety, and employment matters, which we expect to be handled and defended in the ordinary course of business. While we are unable to predict the outcome of any matters currently pending, we do not believe that the ultimate resolution of any such pending matters will have a material adverse effect on our overall financial condition, results of operations, or cash flows.

33 

Item 1A. Risk Factors.

In addition to the other information set forth in this report, you should carefully consider the risks set forth in Part 1, Item, 1A, “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2015. There has been no material change in our risk factors from those described in the Annual Report. These risks are not the only risks that we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may materially adversely affect our business, financial condition or results of operations.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

None.

Item 5. Other Information.

None.

34 

Item 6. Exhibits.

Exhibit	Description
3.1	Certificate of Limited Partnership of World Point Terminals, LP (incorporated herein by reference to Exhibit 3.1 to the Registration on Form S-1 (SEC File No. 333-189396) filed on June 17, 2013).
3.2	First Amended and Restated Agreement of Limited Partnership of World Point Terminals, LP (incorporated herein by reference to Exhibit 3.1 of the Current Report on Form 8-K (SEC File No. 001-36049) filed on August 20, 2013).
3.3	Amendment No. 1 to First Amended and Restated Agreement of Limited Partnership of World Point Terminals, LP (incorporated herein by reference to Exhibit 3.1 of the Current Report on Form 8-K (SEC File No. 001-36049) filed on September 4, 2015).
31.1*	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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.

** Furnished herewith.

35 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	WORLD POINT TERMINALS, LP
	By:	WPT GP, LLC, its General Partner
Date:  August 9, 2016	By:	/s/ Jonathan Q. Affleck
		Jonathan Q. Affleck
		Vice President and Chief Financial Officer

36 

EX-31.1

Exhibit 31.1

Certification

I, Paul A. Novelly, certify that:

1. I have reviewed this report on Form 10-Q of World Point Terminals, LP (the “registrant”).

2. Based on my knowledge, this 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 report.

3. Based on my knowledge, the financial statements, and the other financial information included in this 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 report.

4. The registrant’s other certifying officers 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)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) 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 report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control 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 report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

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:

(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 9, 2016

/s/ Paul A. Novelly

Paul A. Novelly, Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification

I, Jonathan Q. Affleck, certify that:

1. I have reviewed this report on Form 10-Q of World Point Terminals, LP. (the “registrant”).

2. Based on my knowledge, this 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 report.

3. Based on my knowledge, the financial statements, and the other financial information included in this 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 report.

4. The registrant’s other certifying officers 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)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) 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 report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control 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 report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

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:

(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 9, 2016

/s/ Jonathan Q. Affleck

Jonathan Q. Affleck, Chief Financial Officer

EX-32.1

Exhibit 32.1

 Certification

Pursuant to 18 U.S.C. §1350,

As Adopted Pursuant to

§906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of World Point Terminals, LP (the “Company”) on Form 10-Q for the period ended June 30, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned hereby certify pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of §13(a) of the Securities Exchange Act of 1934, as amended.

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

August 9, 2016

/s/ Paul A. Novelly

Paul A. Novelly,

Chief Executive Officer

EX-32.2

Exhibit 32.2

Certification

Pursuant to 18 U.S.C. §1350,

As Adopted Pursuant to

§906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of World Point Terminals, LP (the “Company”) on Form 10-Q for the period ended June 30, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned hereby certify pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of §13(a) of the Securities Exchange Act of 1934, as amended.

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

August 9, 2016

/s/ Jonathan Q. Affleck

Jonathan Q. Affleck,

Chief Financial Officer

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Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 09, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Entity Registrant Name	World Point Terminals, LP
Entity Central Index Key	0001574963
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Trading Symbol	WPT
Entity Common Stock, Shares Outstanding		18,375,507

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Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current Assets
Cash and cash equivalents	$ 11,964	$ 12,186
Accounts receivable, net of allowances of $66 and $25, respectively	3,729	2,603
Accounts receivable - affiliates	1,204	810
Short-term investments	3,938	3,857
Prepaid insurance	24	161
Prepaid insurance - affiliates	729	110
Income tax receivable	55	54
Other current assets	705	553
Total current assets	22,348	20,334
Property, plant and equipment, net	172,136	171,488
Goodwill	559	559
Acquired customer contracts, net	3,990	4,560
Investment in joint venture	8,162	8,961
Other assets	429	521
Total Assets	207,624	206,423
Current Liabilities
Accounts payable	3,531	4,274
Accrued liabilities	1,603	1,195
Due to affiliate companies	284	1,431
Deferred revenue - short-term - affiliates	1,608	802
Income taxes payable	101	102
Total current liabilities	7,127	7,804
Deferred revenue - long-term	340	254
Deferred revenue - long-term - affiliates	4,692	2,071
Other noncurrent liabilities	1,086	1,253
Total liabilities	13,245	11,382
Commitments and contingencies (Notes 9 and 17)
Partners’ Equity
Common units (18,375,507 units issued and outstanding at June 30, 2016 and December 31, 2015)	139,632	139,380
Subordinated units (16,485,507 units issued and outstanding at June 30, 2016 and December 31, 2015)	54,747	55,661
General partner interest (0% interest)	0	0
Total partners’ equity	194,379	195,041
Total Liabilities and Partners’ Equity	$ 207,624	$ 206,423

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Condensed Consolidated Balance Sheets [Parenthetical] - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Accounts receivable, net of allowances	$ 66	$ 25
Common Unit, Issued (in units)	18,375,507	18,375,507
Common Unit, Outstanding (in units)	18,375,507	18,375,507
Subordinate Units, Issued (in units)	16,485,507	16,485,507
Subordinate Units, Outstanding (in units)	16,485,507	16,485,507

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Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
REVENUES
Third parties	$ 14,707	$ 15,183	$ 28,687	$ 30,457
Affiliates	10,403	9,254	20,988	19,123
Revenues, Total	25,110	24,437	49,675	49,580
OPERATING COSTS, EXPENSES AND OTHER
Operating expenses	7,247	7,324	13,881	14,650
Operating expenses reimbursed to affiliates	1,015	653	1,986	1,386
Selling, general and administrative expenses	850	923	1,891	1,960
Selling, general and administrative expenses reimbursed to affiliates	574	441	1,186	891
Depreciation and amortization	5,984	6,285	11,893	12,458
Income from joint venture	(197)	(61)	(417)	(170)
Total operating costs, expenses and other	15,473	15,565	30,420	31,175
INCOME FROM OPERATIONS	9,637	8,872	19,255	18,405
OTHER INCOME/(EXPENSE)
Interest expense	(207)	(206)	(414)	(411)
Interest and dividend income	54	92	110	177
Gain (loss) on investments and other-net	121	(162)	125	(68)
Income before income taxes	9,605	8,596	19,076	18,103
Provision for income taxes	43	22	92	30
NET INCOME	$ 9,562	$ 8,574	$ 18,984	$ 18,073
BASIC AND DILUTED EARNINGS PER UNIT ATTRIBUTABLE TO UNITHOLDERS
Common (in dollars per share)	$ 0.27	$ 0.25	$ 0.54	$ 0.52
Subordinated (in dollars per share)	$ 0.27	$ 0.25	$ 0.54	$ 0.52
WEIGHTED AVERAGE NUMBER OF UNITS OUTSTANDING
Common (in shares)	18,375,507	18,375,507	18,375,507	18,375,507
Subordinated (in shares)	16,485,507	16,485,507	16,485,507	16,485,507

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows provided by operating activities
Net income	$ 18,984	$ 18,073
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	11,893	12,458
Amortization of deferred financing costs	92	92
Loss (gain) on marketable securities	(81)	98
Equity based compensation	1,271	1,270
Income from joint venture	(417)	(170)
Changes in operating assets and liabilities (net of effects of acquisitions):
Accounts receivable	(1,126)	(440)
Prepaid insurance	(482)	(269)
Other current assets and other assets	(152)	(89)
Accounts payable	(1,192)	(2,325)
Accrued liabilities	407	372
Deferred revenue	3,513	1,766
Income taxes payable/receivable	(2)	(187)
Due to affiliated companies	(1,541)	(2,229)
Other noncurrent liabilities	(167)	18
Net cash provided by operating activities	31,000	28,438
Cash flows from investing activities
Purchase of short-term investments	0	(129)
Proceeds from sale of short-term investments	0	1,872
Distribution from CENEX joint venture	1,216	0
Capital expenditures	(11,522)	(11,128)
Net cash used in investing activities	(10,306)	(9,385)
Cash flows from financing activities
Distributions to unitholders	(20,916)	(20,916)
Net cash used in financing activities	(20,916)	(20,916)
Net change in cash and cash equivalents	(222)	(1,863)
Cash and cash equivalents at beginning of year	12,186	18,429
Cash and cash equivalents at end of period	11,964	16,566
Cash paid for interest	303	302
Cash paid for income taxes	97	217
Noncash investing transactions - property and equipment additions included in accounts payable	1,622	1,215
Noncash financing and investing transactions - issuance of units for acquisition of terminal business	$ 0	$ 31,186

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Condensed Consolidated Statement of Partners' Equity - USD ($) $ in Thousands	Total	Limited Partner Common Units [Member]	Limited Partner Subordinated Units [Member]	General Partner [Member]
BALANCE at Dec. 31, 2014		$ 110,241	$ 59,777	$ 0
Equity based compensation expense		2,540	0	0
Net income		17,463	15,666	0
Distributions		(22,050)	(19,782)	0
Issuance of units for acquisition of terminal assets		31,186	0	0
BALANCE at Dec. 31, 2015		139,380	55,661	0
Equity based compensation expense		1,270	0	0
Net income	$ 18,984	10,007	8,977	0
Distributions		(11,025)	(9,891)	0
BALANCE at Jun. 30, 2016		$ 139,632	$ 54,747	$ 0

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BUSINESS AND BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Business Description and Basis of Presentation [Text Block]

1) BUSINESS AND BASIS OF PRESENTATION

Organization

World Point Terminals, LP (the “Partnership”) is a Delaware limited partnership that was formed on April 19, 2013 by World Point Terminals, Inc. (our “Parent”) and WPT GP, LLC (the “General Partner”). The Partnership, through its wholly owned subsidiary Center Point Terminal Company, LLC (“Center Point”), owns, operates, develops and acquires liquid bulk storage terminals and related assets primarily for the storage of petroleum based products, including light refined products, heavy refined products and crude oil. We operate fee-based facilities located along the East Coast, Gulf Coast and Midwest regions of the United States.

Basis of Presentation

These unaudited interim condensed consolidated financial statements were prepared under the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) and in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements. Accordingly, these financial statements do not include all of the disclosures required by GAAP and should be read along with the Partnership’s 2015 audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2015. The Partnership’s financial statements as of June 30, 2016, and for the three and six months ended June 30, 2016 and 2015, are unaudited and have been prepared on the same basis as the annual consolidated financial statements. All intercompany accounts and transactions have been eliminated in the preparation of the accompanying financial statements.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

In management’s opinion, the accompanying unaudited condensed consolidated financial statements include all adjustments consisting of normal recurring accruals necessary for the fair presentation of the results of operations for the three and six months ended June 30, 2016 and 2015. Information for interim periods may not be indicative of the Partnership’s operating results for the entire year.

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EARNINGS PER UNIT AND CASH DISTRIBUTIONS

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

2) EARNINGS PER UNIT AND CASH DISTRIBUTIONS

Earnings per unit applicable to limited partners (including subordinated unitholders) is computed by dividing limited partners’ interest in net income, after deducting amounts due pursuant to Incentive Distribution Rights (“IDRs”) by the weighted-average number of outstanding common and subordinated units. Our net income is allocated to the limited partners in accordance with their respective ownership interests, after giving effect to priority income allocations, including incentive distributions, if any, to the holders of IDRs, pursuant to our partnership agreement. Earnings in excess of distributions are allocated to the limited partners based on their respective ownership interests. Payments made to our unitholders are determined in relation to actual distributions declared and are not based on the net income allocations used in the calculation of earnings per unit. The weighted-average number of units outstanding was as follows:

	Three Months Ended June 30, 2016		Six Months Ended June 30, 2016
Common Units		18,375,507		18,375,507
Subordinated Units		16,485,507		16,485,507

In addition to the common and subordinated units, we have also identified the IDRs as participating securities and use the two-class method when calculating the earnings per unit applicable to limited partners, which is based on the weighted-average number of common and subordinated units outstanding during the period. Basic and diluted earnings per unit applicable to limited partners are the same because we do not have any potentially dilutive units outstanding.

The calculation of earnings per unit is as follows:

	Three Months Ended June 30, 2016						Six Months Ended June 30, 2016
	Common		Subordinated		Total		Common		Subordinated		Total
Net income attributable to unitholders	$	5,041	$	4,521	$	9,562	$	10,007	$	8,977	$	18,984
Less:
Distributions payable on behalf of IDRs		-		-		-		-		-		-
Distributions payable on behalf of general partner interest		-		-		-		-		-		-
Net income attributable to unitholders	$	5,041	$	4,521	$	9,562	$	10,007	$	8,977	$	18,984
Weighted average limited partner units outstanding:
Common Units – Public1		11,952,500						11,952,500
Common Units – Parent		6,423,007						6,423,007
Subordinated Units – Parent				16,485,507						16,485,507
Earnings per unit	$	0.27	$	0.27			$	0.54	$	0.54

¹ As of June 30, 2016, Apex Oil Company, Inc. (“Apex”) owns 1,550,000 of the total 11,952,500 common units – public.

Cash Distributions

Our partnership agreement generally provides that we will make our distributions, if any, each quarter in the following manner:

⋅	first, to all unitholders, pro rata, until each unitholder receives a total of $0.345  per unit for that quarter (the “first target distribution”);
⋅	second, 85.0% to all unitholders, pro rata, and 15.0% to the holders of the IDRs, pro rata, until each unitholder receives a total of $0.375 per unit for that quarter (the “second target distribution”);
⋅	third, 75.0% to all unitholders, pro rata, and 25.0% to the holders of the IDRs, pro rata, until each unitholder receives a total of $0.45 per unit for that quarter (the “third target distribution”); and
⋅	thereafter, 50.0% to all unitholders, pro rata, and 50.0% to the holders of the IDRs, pro rata.

In each case, the amount of the target distribution set forth above is exclusive of any distributions to common unitholders to eliminate any cumulative arrearages in payment of the minimum quarterly distribution. The percentage interests set forth above assume that we do not issue additional classes of equity securities.

Our unitholders and the holders of our IDRs will receive distributions according to the following percentage allocations:

	Total Quarterly Distribution	Marginal Percentage Interest in Distributions
	Target Amount	Unitholders			Holders of IDRs
Minimum Quarterly Distribution	$0.30		100	%		-
First Target Distribution	above $0.30 up to $0.345		100	%		-
Second Target Distribution	above $0.345 up to $0.375		85	%		15	%
Third Target Distribution	above $0.375 up to $0.450		75	%		25	%
Thereafter	above $0.450		50	%		50	%

The following table sets forth the distribution declared in total and per limited partner unit attributable to the periods indicated:

		Distributions
Period	Date Declared	Amount		Per Unit
January 1, 2015 through March 31, 2015	April 21, 2015	$	10,458	$	0.3000
April 1, 2015 through June 30, 2015	July 16, 2015	$	10,458	$	0.3000
July 1, 2015 through September 30, 2015	October 14, 2015	$	10,458	$	0.3000
October 1, 2015 through December 31, 2015	January 14, 2016	$	10,458	$	0.3000
January 1, 2016 through March 31, 2016	April 14, 2016	$	10,458	$	0.3000
April 1, 2016 through June 30, 2016	July 15, 2016	$	10,458	$	0.3000

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FINANCIAL INSTRUMENTS

6 Months Ended

Jun. 30, 2016

Investments, All Other Investments [Abstract]

Financial Instruments Disclosure [Text Block]

3) FINANCIAL INSTRUMENTS

The Partnership’s financial assets and liabilities consist primarily of cash and cash equivalents, accounts receivable, short-term investments, accounts payable and accrued liabilities.

The Partnership has exposure to counterparty credit risk, liquidity risk, interest rate risk, and other price risk with its financial assets and liabilities. The Partnership’s risk management program seeks to minimize potential adverse effects on the Partnership’s financial performance and ultimately shareholder value. The Partnership manages its risks and risk exposures through a combination of sound business practices, derivative instruments and a system of internal controls.

Credit Risk — Credit risk arises from cash held with banks, credit exposure to customers (including outstanding accounts receivable), and counterparty risk associated with certain of the Partnership’s short-term investments.

Cash and cash equivalents consist of bank balances. Credit risk associated with cash is minimized by ensuring that these financial assets are held at high quality financial institutions.

Accounts receivable consists primarily of trade accounts receivable from storage related revenues. The Partnership’s credit risk arises from the possibility that a counterparty which owes the Partnership money is unable or unwilling to meet its obligations in accordance with the terms and conditions of the contracts with the Partnership, which would result in a financial loss for the Partnership. Credit risk associated with accounts receivable is minimized by the business model and collection policies of the Partnership. Most of the Partnership’s customers prepay their obligations at the beginning of each month and/or the Partnership has custody of customer assets at its facilities. The assets held by the Partnership belonging to its customers generally carry a market value well in excess of the accounts receivable balances due. The Partnership conducts business with a relatively few number of customers, including one affiliated customer that comprised approximately 42% and 38% of the Partnership’s first six months 2016 and 2015 revenues, respectively, and another customer that comprised approximately 11% of the Partnership’s first six months 2016 and 2015 revenues, under both short-term and long-term contracts. A large portion of the Partnership’s annual expenses are fixed and, accordingly, the Partnership’s ability to meet its ongoing obligations is dependent upon its ability to retain existing customers and/or attract new ones.

The carrying amounts of accounts receivable are reduced through the use of an allowance for doubtful accounts and the amount of the loss is recognized in the consolidated statements of income. The allowance for doubtful accounts is determined by specific customer balance analysis. When a receivable balance is considered uncollectable, it is written off against the allowance for accounts receivable. Subsequent recoveries of amounts previously written off reduce expenses in the consolidated statements of income. Historically trade credit losses have been minimal.

The Partnership has equity investments in marketable securities, including certain preferred and trust preferred stocks and debt securities. The Partnership seeks to mitigate risk of a financial loss by investing in what it considers to be high-quality instruments with quality counterparties.

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FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

4) FAIR VALUE MEASUREMENTS

The Partnership adopted the amendments to Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures, for the consolidated financial statements. The amendments require the use of a fair value hierarchy in order to classify the fair value disclosures related to the Partnership’s financial assets and financial liabilities that are recognized in the balance sheets at fair value.

The fair value hierarchy has the following levels:

Level 1 — Values based on unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities.

Level 2 — Values based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, or model based valuation techniques for which all significant assumptions are observable in the market.

Level 3 — Values are generated from model based techniques that use significant assumptions not observable in the market. Valuation techniques could include use of option pricing models, discounted cash flow models and similar techniques. The Partnership does not currently have any instruments with fair value determined using Level 3 inputs.

The level in the fair value hierarchy within which the fair value measurement is categorized in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety.

The financial assets and financial liabilities, measured at fair value in the consolidated balance sheets, consisted of the following as of June 30, 2016 and December 31, 2015:

June 30, 2016	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	11,964	$	-	$	-	$	11,964
Short-term investments
Exchange traded debt securities		533		-		-		533
Preferred stocks		3,405		-		-		3,405
Total short-term investments		3,938		-		-		3,938
Total assets at fair value	$	15,902	$	-	$	-	$	15,902
Long-term incentive plan liability	$	-	$	5	$	-	$	5
December 31, 2015	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	12,186	$	-	$	-	$	12,186
Short-term investments
Exchange traded debt securities		517		-		-		517
Preferred stocks		3,340		-		-		3,340
Total short-term investments	$	3,857	$	-	$	-	$	3,857
Total assets at fair value	$	16,043	$	-	$	-	$	16,043
Long-term incentive plan liability	$	-	$	4	$	-	$	4

For assets and liabilities that are measured using quoted prices in active markets, the total fair value is the published market price per unit multiplied by the number of units held without consideration of transaction costs. The following methods and assumptions were used to estimate the fair value of each class of financial instrument:

Cash Equivalents — The carrying value of cash equivalents represents fair value as it is based on active market quotes available for these assets and is classified as Level 1.

Short-Term Investments— The short-term investments consist of investments in listed exchange traded debt securities, preferred stocks and trust preferred securities. The securities are valued using quoted prices from the various public markets. The securities trade on public exchanges, both domestic and foreign, and can be accurately described as active markets. The observable valuation inputs are unadjusted quoted prices that represent active market trades and are classified as Level 1.

Long-Term Incentive Plan Liability – The long-term incentive plan liability is the estimated value of unit appreciation rights granted to our employees, as calculated by the Black-Scholes model. The liability is valued using significant assumptions that are observable in the market including an expected risk-free rate, distribution yield, volatility rate, and life to maturity. The liability is classified as Level 2.

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ALLOWANCE FOR DOUBTFUL RECEIVABLES

6 Months Ended

Jun. 30, 2016

Receivables [Abstract]

Allowance For Doubtful Accounts Receivable Disclosure [Text Block]

5) ALLOWANCE FOR DOUBTFUL RECEIVABLES

The following table displays a roll forward of the allowance for doubtful trade receivables for the six months ended June 30, 2016 and the year ended December 31, 2015:

	June 30, 2016		December 31, 2015
Allowance for doubtful receivable at January 1	$	25	$	8
Additions charged to expense		41		28
Subtractions included in income		-		(11)
	$	66	$	25

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PROPERTY, PLANT AND EQUIPMENT

6 Months Ended

Jun. 30, 2016

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

6) PROPERTY, PLANT AND EQUIPMENT

Property, plant, and equipment consisted of the following as of June 30, 2016 and December 31, 2015:

June 30, 2016	Cost		Accumulated Depreciation		Net Book Value
Land	$	32,564	$	-	$	32,564
Tanks and appenditures		246,798		144,166		102,632
Docks and jetties		17,943		7,482		10,461
Machinery and equipment		10,251		7,749		2,502
Buildings		2,710		960		1,750
Other		11,847		4,666		7,181
Assets under construction		15,046		-		15,046
	$	337,159	$	165,023	$	172,136
December 31, 2015	Cost		Accumulated Depreciation		Net Book Value
Land	$	32,564	$	-	$	32,564
Tanks and appenditures		241,985		135,031		106,954
Docks and jetties		17,937		6,634		11,303
Machinery and equipment		10,081		7,026		3,055
Buildings		2,628		897		1,731
Other		11,153		4,117		7,036
Assets under construction		8,845		-		8,845
	$	325,193	$	153,705	$	171,488

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TERMINAL ACQUISITIONS

6 Months Ended

Jun. 30, 2016

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

7) TERMINAL ACQUISITIONS

On September 14, 2015, the Partnership acquired a terminal facility in Salisbury, Maryland which has a total shell capacity of 177,000 barrels for the storage of gasoline, ultra-low-sulfur diesel, heating oil and ethanol. The terminal is served by truck and barge. The total fair value of the terminal was $965 and was allocated to property, plant and equipment. There were no other identifiable assets or liabilities included in this acquisition.

On January 1, 2015, the Partnership acquired a terminal facility in Greensboro, North Carolina which has a total shell capacity of 684,000 barrels for the storage of gasoline, distillate, ethanol and jet fuel. The terminal is served by truck and connection to the Colonial Pipeline. The Partnership entered into a contribution agreement with Apex Oil Company, Inc. and one of its subsidiaries, whereby the Partnership issued 1,550,000 common units to Apex in exchange for the terminal. Based on the closing price of the Partnership’s common units on December 31, 2014, the value of the units issued represented approximately $31,186 in total consideration. The acquisition of the Greensboro terminal qualifies as a business under the Business Combinations topic of the ASC. The allocation of the contribution consideration to the assets acquired and liabilities assumed was accounted for under the acquisition method of accounting. Assets acquired and liabilities assumed in the transaction were recorded at their estimated acquisition date fair values, while transaction costs associated with the acquisition were expensed as incurred, other than $48 in closing costs which were recorded as property, plant and equipment.

The Partnership has allocated the contribution consideration to the assets acquired as follows:

Contribution consideration
Property, plant and equipment	$	25,304
Goodwill		182
Acquired customer contracts		5,700
Total consideration		31,186
Closing costs		48
Additive inventory		53
Total terminal cost	$	31,287

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ACQUIRED CUSTOMER CONTRACTS

6 Months Ended

Jun. 30, 2016

Business Combinations [Abstract]

Intangible Assets Disclosure [Text Block]

8) ACQUIRED CUSTOMER CONTRACTS  

In connection with the acquisition of the terminal facility in Greensboro, North Carolina, the Partnership allocated $5,700 of the consideration to acquired customer contracts. The cost will be amortized on a straight-line basis over a period of five years.

Acquired customer contracts consisted of the following at June 30, 2016 and December 31, 2015:

	June 30, 2016		December 31, 2015
Cost	$	5,700	$	5,700
Less accumulated amortization		(1,710)		(1,140)
	$	3,990	$	4,560

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COMMITMENTS

6 Months Ended

Jun. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments Disclosure [Text Block]

9) COMMITMENTS  

The Partnership leases land and other use rights at some of its facilities. These leases expire from March 31, 2017 through February 1, 2061. In accordance with the terms of its lease with the Galveston port authority, in lieu of periodic lease payments, the Partnership is responsible for the maintenance of the dock. Lease expense for the periods indicated were:

Three Months Ended June 30,				Six Months Ended June 30,
2016		2015		2016		2015
$	244	$	304	$	546	$	577

Minimum rental commitments for all storage facilities of the Partnership under existing non-cancelable operating leases for the remainder of 2016 and for the years ending December 31 thereafter are as follows:

2016	$	269
2017		577
2018		570
2019		479
2020		43
Thereafter		5
	$	1,943

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DEBT

6 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

10) DEBT

On August 14, 2013, Center Point entered into a $200,000 senior secured revolving credit facility with The Bank of Tokyo-Mitsubishi UFJ, Ltd., as administrative agent, and a syndicate of lenders (the “Credit Facility”), which has an initial maturity date of August 14, 2018. The Credit Facility is available, subject to certain conditions, for working capital, capital expenditures, permitted acquisitions and general partnership purposes, including distributions and unit repurchases. In addition, the Credit Facility includes a sublimit of up to $20,000 for swing line loans and permits the Partnership to enter into a pari passu credit facility for the provision of letters of credit in an aggregate principal amount not to exceed $20,000 at any time. The Credit Facility also includes an accordion feature permitting increases in the commitments under the Credit Facility by an aggregate amount up to $100,000. Substantially all of the Partnership’s assets are pledged as collateral under the Credit Facility, and the Partnership and its other subsidiaries entered into guarantees of payment on behalf of Center Point for amounts outstanding under the Credit Facility.

Center Point incurred costs of $910 associated with the Credit Facility which will be amortized over the five year term of the facility. Borrowings under the Credit Facility bear interest at LIBOR plus an applicable margin. The terms of the Credit Facility contain certain covenants and conditions including an interest coverage ratio and a total leverage ratio. Center Point was in compliance with such covenants as of June 30, 2016 and December 31, 2015. In addition to interest associated with the borrowings, Center Point is obligated to pay a commitment fee calculated on the balance of the unused portion of the Credit Facility. There have not been any borrowings on the credit facility. As of June 30, 2016 and December 31, 2015, Center Point had future estimated minimum loan commitment fees of $1,290 and $1,593, respectively. Center Point incurred commitment fees, which have been recorded as interest expense, for the periods indicated as follows: 

Three Months Ended June 30,				Six Months Ended June 30,
2016		2015		2016		2015
$	151	$	152	$	303	$	302

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ASSET RETIREMENT OBLIGATIONS

6 Months Ended

Jun. 30, 2016

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligation Disclosure [Text Block]

11) ASSET RETIREMENT OBLIGATIONS

The Partnership has recorded a liability for the estimated costs of removing its terminal assets from those terminals located on leased land where the landowners have the right to require the Partnership to remove the assets. The recorded liability was $677 and $658 at June 30, 2016 and December 31, 2015, respectively, which represents the present value of the estimated costs of removal. The maximum undiscounted liability is estimated to be $10,135. This amount was discounted utilizing the Partnership’s estimated, credit adjusted risk-free rate and further adjusted by probability factors based on management’s assessment of the likelihood of being required to demolish certain assets. Should the landowners exercise their rights to require the Partnership to remove the terminal assets, the cash outflows required to settle these obligations will occur on or around lease expiration dates ranging from July 13, 2034 to February 1, 2061.

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SEGMENT REPORTING

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

12) SEGMENT REPORTING

The Partnership derives revenues from operating its eighteen liquid bulk storage and terminal facilities. The eighteen operating segments have been aggregated into one reportable segment because the facilities have similar long-term economic characteristics, products and types of customers.

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EMPLOYEE BENEFIT PLANS

6 Months Ended

Jun. 30, 2016

Compensation and Retirement Disclosure [Abstract]

Compensation and Employee Benefit Plans [Text Block]

13) EMPLOYEE BENEFIT PLANS

The Partnership offers a defined contribution savings plan. Under this plan, the Partnership matches the amount of employee contributions to specified limits. The Partnership’s employee benefit plan related expenses for the periods indicated were:

Three Months Ended June 30,				Six Months Ended June 30,
2016		2015		2016		2015
$	69	$	62	$	121	$	119

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INCOME TAXES

6 Months Ended

Jun. 30, 2016

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

14) INCOME TAXES

The Partnership’s taxable income flows through to its partners, who generally will be responsible for the appropriate taxes due on the taxable income. However, the Partnership or its subsidiaries continue to be treated as taxable entities and pay taxes in some state and local jurisdictions.

The provision for income taxes from operations consists of the following:

	For the Three Months  Ended June 30,				For the Six Months  Ended June 30,
	2016		2015		2016		2015
Current	$	43	$	22	$	92	$	30

The Partnership and its subsidiaries file income tax returns in the U.S. and various states. With few exceptions, the Partnership is no longer subject to U.S. federal, state, and local income tax examinations by tax authorities for years before 2012. As of June 30, 2016 and December 31, 2015, the Partnership did not have any unrecognized tax benefits recorded in the consolidated balance sheets.

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RELATED PARTY TRANSACTIONS AND BALANCES

6 Months Ended

Jun. 30, 2016

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

15) RELATED PARTY TRANSACTIONS AND BALANCES

The Partnership enters into transactions with companies in which our parent, and its affiliates, are significant owners (“affiliate” or “affiliated company”). The amounts shown below have been recorded at their exchange value, which is the amount of consideration agreed to by the related parties.

Affiliated companies provide management and marketing services to the Partnership’s facilities and are reimbursed for direct and indirect costs associated with those services, which includes compensation of its employees and payment for supplies and equipment. Total charges for related party services were as follows:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2016		2015		2016		2015
Operating costs	$	1,015	$	653	$	1,986	$	1,386
Reimbursement for management and marketing services		574		441		1,186		891
	$	1,589	$	1,094	$	3,172	$	2,277

The Partnership earned storage revenue from affiliate companies for the periods indicated of:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2016		2015		2016		2015
Affiliate revenues	$	10,403	$	9,254	$	20,988	$	19,123

The Partnerships assets and liabilities included the following related party balances:

	June 30,  2016		December 31,  2015
Accounts receivable – affiliates	$	1,204	$	810
Prepaid insurance – affiliates		729		110
Due to affiliates		284		1,431
Deferred revenue – short-term – affiliates		1,608		802
Deferred revenue – long-term – affiliates		4,692		2,071

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DEFERRED REVENUE

6 Months Ended

Jun. 30, 2016

Deferred Revenue Disclosure [Abstract]

Deferred Revenue Disclosure [Text Block]

16) DEFERRED REVENUE

The Partnership has entered into arrangements with Apex to provide certain terminaling services at the Partnership’s facilities. The arrangements establish the pricing and require Apex to prepay for a portion of future services. The Partnership has recorded the prepayments as deferred revenue - affiliate.

The non-affiliate deferred revenue balance is related to storage service fees received in advance from terminal customers.

The following table summarizes the Partnership’s deferred revenue activity:

	June 30,  2016		December 31, 2015
Balance at January 1	$	3,127	$	1,762
Additions		4,115		2,001
Amortization		(602)		(636)
Balance at period end	$	6,640	$	3,127
Deferred revenue – short-term – affiliates	$	1,608	$	802
Deferred revenue – long-term	$	340	$	254
Deferred revenue – long-term - affiliates	$	4,692	$	2,071

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CONTINGENCIES

6 Months Ended

Jun. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Contingencies Disclosure [Text Block]

17) CONTINGENCIES

The Partnership is subject to extensive environmental laws and regulations in the jurisdictions in which it operates. Additionally, the Partnership has contingent liabilities with respect to other lawsuits and other potential matters arising in the ordinary course of business. In management’s opinion, the ultimate outcome of these contingencies will not have a material impact on the results of operations, cash flows or financial condition of the Partnership. As a result, the Partnership has not accrued for any loss contingencies in 2016 and 2015.

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EQUITY-BASED COMPENSATION

6 Months Ended

Jun. 30, 2016

Equity [Abstract]

Shareholders Equity and Share-based Payments [Text Block]

18) EQUITY-BASED COMPENSATION

The Partnership has a Long-Term Incentive Plan (the “LTIP”) for providing long-term incentives to our employees, directors and consultants who provide services to us.  The plan is administered by the board of directors of our General Partner (the “Board of Directors”).  The Board of Directors has authority to: (i) designate participants; (ii) determine types of awards; (iii) determine number of units covered by the award; (iv) determine terms and conditions of awards; (v) determine how and when awards might be settled; and (vi) interpret and administer the plan and take other such actions as might be necessary for the proper administration of the plan.  The LTIP provides for the issuance of an aggregate of up to 3,000,000 Common Units to be granted either as options, restricted units, phantom units, distribution equivalent rights, unit appreciation rights (“UARs”), unit awards, profits interest units or other unit-based award granted under the plan.  As of June 30, 2016, we have granted awards totaling 340,000 restricted units and 25,000 UARs.

The restricted units vest over three years subject to customary forfeiture provisions. Restricted units are included in the number of common units outstanding as presented on our unaudited Condensed Consolidated Balance Sheets and are entitled to cash distributions, which are nonforfeitable, on the same basis as the Common Units.  The Partnership recorded non-cash compensation expense related to the restricted units as follows:

Three Months Ended June 30,				Six Months Ended June 30,
2016		2015		2016		2015
$	635	$	635	$	1,270	$	1,270

The UARs vest over five years subject to customary forfeiture provisions, and are not included in the number of common units outstanding as presented on our unaudited condensed consolidated balance sheets or entitled to cash distributions. Non-cash compensation expense related to the UARs has been estimated using the Black Scholes model. Because the UARs may be settled in units or cash at the option of the participant, they have been recorded utilizing the liability method. Non-cash compensation expense relating to the UARs was $2 for the three months ended June 30, 2016 and $1 for the six months ended June 30, 2016. The exercise price of the UARs is the fair market value of a unit on the grant date.

 

The following table summarizes awards granted pursuant to the LTIP through June 30, 2016. There were no forfeitures through June 30, 2016. 

	UARs Awarded		Restricted  Units Awarded		Vested  Units		Fair Value at Award Date
September 24, 20131		-		90,000		33,330	$	20.21
April 23, 20142		-		250,000		-	$	23.20
July 6, 20153		25,000		-		-	$	16.95

¹ Units awarded to directors of General Partner and Parent

² Units awarded to the chairman of General Partner

3 UARs awarded to an employee of the General Partner

As of June 30, 2016, the Partnership had unrecognized compensation expense of $1,727.

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SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2016

Subsequent Events [Abstract]

Subsequent Events [Text Block]

19) SUBSEQUENT EVENTS

On July 15, 2016 the Board of Directors declared a cash distribution of $0.30 per unit for the period from April 1, 2016 through June 30, 2016. The distribution is payable on August 12, 2016 to unitholders of record on July 28, 2016.

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EARNINGS PER UNIT AND CASH DISTRIBUTIONS (Tables)

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Schedule of Weighted Average Number of Shares [Table Text Block]

The weighted-average number of units outstanding was as follows:

	Three Months Ended June 30, 2016		Six Months Ended June 30, 2016
Common Units		18,375,507		18,375,507
Subordinated Units		16,485,507		16,485,507

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

The calculation of earnings per unit is as follows:

	Three Months Ended June 30, 2016						Six Months Ended June 30, 2016
	Common		Subordinated		Total		Common		Subordinated		Total
Net income attributable to unitholders	$	5,041	$	4,521	$	9,562	$	10,007	$	8,977	$	18,984
Less:
Distributions payable on behalf of IDRs		-		-		-		-		-		-
Distributions payable on behalf of general partner interest		-		-		-		-		-		-
Net income attributable to unitholders	$	5,041	$	4,521	$	9,562	$	10,007	$	8,977	$	18,984
Weighted average limited partner units outstanding:
Common Units – Public1		11,952,500						11,952,500
Common Units – Parent		6,423,007						6,423,007
Subordinated Units – Parent				16,485,507						16,485,507
Earnings per unit	$	0.27	$	0.27			$	0.54	$	0.54

¹ As of June 30, 2016, Apex Oil Company, Inc. (“Apex”) owns 1,550,000 of the total 11,952,500 common units – public.

Schedule of Incentive Distributions Made to Managing Members or General Partners by Distribution [Table Text Block]

Our unitholders and the holders of our IDRs will receive distributions according to the following percentage allocations:

	Total Quarterly Distribution	Marginal Percentage Interest in Distributions
	Target Amount	Unitholders			Holders of IDRs
Minimum Quarterly Distribution	$0.30		100	%		-
First Target Distribution	above $0.30 up to $0.345		100	%		-
Second Target Distribution	above $0.345 up to $0.375		85	%		15	%
Third Target Distribution	above $0.375 up to $0.450		75	%		25	%
Thereafter	above $0.450		50	%		50	%

Distributions Made to Limited Partner, by Distribution [Table Text Block]

The following table sets forth the distribution declared in total and per limited partner unit attributable to the periods indicated:

		Distributions
Period	Date Declared	Amount		Per Unit
January 1, 2015 through March 31, 2015	April 21, 2015	$	10,458	$	0.3000
April 1, 2015 through June 30, 2015	July 16, 2015	$	10,458	$	0.3000
July 1, 2015 through September 30, 2015	October 14, 2015	$	10,458	$	0.3000
October 1, 2015 through December 31, 2015	January 14, 2016	$	10,458	$	0.3000
January 1, 2016 through March 31, 2016	April 14, 2016	$	10,458	$	0.3000
April 1, 2016 through June 30, 2016	July 15, 2016	$	10,458	$	0.3000

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FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]

The financial assets and financial liabilities, measured at fair value in the consolidated balance sheets, consisted of the following as of June 30, 2016 and December 31, 2015:

June 30, 2016	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	11,964	$	-	$	-	$	11,964
Short-term investments
Exchange traded debt securities		533		-		-		533
Preferred stocks		3,405		-		-		3,405
Total short-term investments		3,938		-		-		3,938
Total assets at fair value	$	15,902	$	-	$	-	$	15,902
Long-term incentive plan liability	$	-	$	5	$	-	$	5
December 31, 2015	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	12,186	$	-	$	-	$	12,186
Short-term investments
Exchange traded debt securities		517		-		-		517
Preferred stocks		3,340		-		-		3,340
Total short-term investments	$	3,857	$	-	$	-	$	3,857
Total assets at fair value	$	16,043	$	-	$	-	$	16,043
Long-term incentive plan liability	$	-	$	4	$	-	$	4

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ALLOWANCE FOR DOUBTFUL RECEIVABLES (Tables)

6 Months Ended

Jun. 30, 2016

Receivables [Abstract]

Schedule of Allowance For Doubtful Accounts [Table Text Block]

The following table displays a roll forward of the allowance for doubtful trade receivables for the six months ended June 30, 2016 and the year ended December 31, 2015:

	June 30, 2016		December 31, 2015
Allowance for doubtful receivable at January 1	$	25	$	8
Additions charged to expense		41		28
Subtractions included in income		-		(11)
	$	66	$	25

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PROPERTY, PLANT AND EQUIPMENT (Tables)

6 Months Ended

Jun. 30, 2016

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]

Property, plant, and equipment consisted of the following as of June 30, 2016 and December 31, 2015:

June 30, 2016	Cost		Accumulated Depreciation		Net Book Value
Land	$	32,564	$	-	$	32,564
Tanks and appenditures		246,798		144,166		102,632
Docks and jetties		17,943		7,482		10,461
Machinery and equipment		10,251		7,749		2,502
Buildings		2,710		960		1,750
Other		11,847		4,666		7,181
Assets under construction		15,046		-		15,046
	$	337,159	$	165,023	$	172,136
December 31, 2015	Cost		Accumulated Depreciation		Net Book Value
Land	$	32,564	$	-	$	32,564
Tanks and appenditures		241,985		135,031		106,954
Docks and jetties		17,937		6,634		11,303
Machinery and equipment		10,081		7,026		3,055
Buildings		2,628		897		1,731
Other		11,153		4,117		7,036
Assets under construction		8,845		-		8,845
	$	325,193	$	153,705	$	171,488

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TERMINAL ACQUISITIONS (Tables)

6 Months Ended

Jun. 30, 2016

Business Combinations [Abstract]

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

The Partnership has allocated the contribution consideration to the assets acquired as follows:

Contribution consideration
Property, plant and equipment	$	25,304
Goodwill		182
Acquired customer contracts		5,700
Total consideration		31,186
Closing costs		48
Additive inventory		53
Total terminal cost	$	31,287

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ACQUIRED CUSTOMER CONTRACTS (Tables)

6 Months Ended

Jun. 30, 2016

Business Combinations [Abstract]

Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block]

Acquired customer contracts consisted of the following at June 30, 2016 and December 31, 2015:

	June 30, 2016		December 31, 2015
Cost	$	5,700	$	5,700
Less accumulated amortization		(1,710)		(1,140)
	$	3,990	$	4,560

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COMMITMENTS (Tables)

6 Months Ended

Jun. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Schedule of Rent Expense [Table Text Block]

 Lease expense for the periods indicated were:

Three Months Ended June 30,				Six Months Ended June 30,
2016		2015		2016		2015
$	244	$	304	$	546	$	577

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

Minimum rental commitments for all storage facilities of the Partnership under existing non-cancelable operating leases for the remainder of 2016 and for the years ending December 31 thereafter are as follows:

2016	$	269
2017		577
2018		570
2019		479
2020		43
Thereafter		5
	$	1,943

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DEBT (Tables)

6 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

Interest Income and Interest Expense Disclosure [Table Text Block]

Center Point incurred commitment fees, which have been recorded as interest expense, for the periods indicated as follows: 

Three Months Ended June 30,				Six Months Ended June 30,
2016		2015		2016		2015
$	151	$	152	$	303	$	302

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EMPLOYEE BENEFIT PLANS (Tables)

6 Months Ended

Jun. 30, 2016

Compensation and Retirement Disclosure [Abstract]

Schedule of Defined Benefit Plans Disclosures [Table Text Block]

The Partnership’s employee benefit plan related expenses for the periods indicated were:

Three Months Ended June 30,				Six Months Ended June 30,
2016		2015		2016		2015
$	69	$	62	$	121	$	119

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INCOME TAXES (Tables)

6 Months Ended

Jun. 30, 2016

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The provision for income taxes from operations consists of the following:

	For the Three Months  Ended June 30,				For the Six Months  Ended June 30,
	2016		2015		2016		2015
Current	$	43	$	22	$	92	$	30

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RELATED PARTY TRANSACTIONS AND BALANCES (Tables)

6 Months Ended

Jun. 30, 2016

Charges For Related Party Services [Member]

Related Party Transaction [Line Items]

Schedule of Related Party Transactions [Table Text Block]

Total charges for related party services were as follows:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2016		2015		2016		2015
Operating costs	$	1,015	$	653	$	1,986	$	1,386
Reimbursement for management and marketing services		574		441		1,186		891
	$	1,589	$	1,094	$	3,172	$	2,277

Revenue From Affiliate Companies [Member]

Related Party Transaction [Line Items]

Schedule of Related Party Transactions [Table Text Block]

The Partnership earned storage revenue from affiliate companies for the periods indicated of:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2016		2015		2016		2015
Affiliate revenues	$	10,403	$	9,254	$	20,988	$	19,123

Assets and Liabilities [Member]

Related Party Transaction [Line Items]

Schedule of Related Party Transactions [Table Text Block]

The Partnerships assets and liabilities included the following related party balances:

	June 30,  2016		December 31,  2015
Accounts receivable – affiliates	$	1,204	$	810
Prepaid insurance – affiliates		729		110
Due to affiliates		284		1,431
Deferred revenue – short-term – affiliates		1,608		802
Deferred revenue – long-term – affiliates		4,692		2,071

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DEFERRED REVENUE (Tables)

6 Months Ended

Jun. 30, 2016

Deferred Revenue Disclosure [Abstract]

Deferred Revenue, by Arrangement, Disclosure [Table Text Block]

The following table summarizes the Partnership’s deferred revenue activity:

	June 30,  2016		December 31, 2015
Balance at January 1	$	3,127	$	1,762
Additions		4,115		2,001
Amortization		(602)		(636)
Balance at period end	$	6,640	$	3,127
Deferred revenue – short-term – affiliates	$	1,608	$	802
Deferred revenue – long-term	$	340	$	254
Deferred revenue – long-term - affiliates	$	4,692	$	2,071

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EQUITY-BASED COMPENSATION (Tables)

6 Months Ended

Jun. 30, 2016

Equity [Abstract]

Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block]

The Partnership recorded non-cash compensation expense related to the restricted units as follows:

Three Months Ended June 30,				Six Months Ended June 30,
2016		2015		2016		2015
$	635	$	635	$	1,270	$	1,270

Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block]

The following table summarizes awards granted pursuant to the LTIP through June 30, 2016. There were no forfeitures through June 30, 2016. 

	UARs Awarded		Restricted  Units Awarded		Vested  Units		Fair Value at Award Date
September 24, 20131		-		90,000		33,330	$	20.21
April 23, 20142		-		250,000		-	$	23.20
July 6, 20153		25,000		-		-	$	16.95

¹ Units awarded to directors of General Partner and Parent

² Units awarded to the chairman of General Partner

3 UARs awarded to an employee of the General Partner

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EARNINGS PER UNIT AND CASH DISTRIBUTIONS (Details) - shares	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016
Earning Per Share and Cash Distributions [Line Items]
Weighted Average Number of Shares Outstanding, Basic		11,952,500
Common Units [Member]
Earning Per Share and Cash Distributions [Line Items]
Weighted Average Number of Shares Outstanding, Basic	18,375,507	18,375,507
Subordinated Units [Member]
Earning Per Share and Cash Distributions [Line Items]
Weighted Average Number of Shares Outstanding, Basic	16,485,507	16,485,507

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EARNINGS PER UNIT AND CASH DISTRIBUTIONS (Details 1) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Earning Per Share and Cash Distributions [Line Items]
Net income attributable to unitholders		$ 9,562	$ 8,574	$ 18,984	$ 18,073
Distributions payable on behalf of IDRs		0		0
Distributions payable on behalf of general partner interest		0		0
Net income attributable to unitholders		9,562		18,984
Common Stock [Member]
Earning Per Share and Cash Distributions [Line Items]
Net income attributable to unitholders		5,041		10,007
Distributions payable on behalf of IDRs		0		0
Distributions payable on behalf of general partner interest		0		0
Net income attributable to unitholders		$ 5,041		$ 10,007
Weighted average limited partner units outstanding:		6,423,007		6,423,007
Earnings per unit		$ 0.27		$ 0.54
Subordinated Units [Member]
Earning Per Share and Cash Distributions [Line Items]
Net income attributable to unitholders		$ 4,521		$ 8,977
Distributions payable on behalf of IDRs		0		0
Distributions payable on behalf of general partner interest		0		0
Net income attributable to unitholders		$ 4,521		$ 8,977
Weighted average limited partner units outstanding:		16,485,507		16,485,507
Earnings per unit		$ 0.27		$ 0.54
IPO [Member] | Common Stock [Member]
Earning Per Share and Cash Distributions [Line Items]
Weighted average limited partner units outstanding:	[1]	11,952,500		11,952,500

[1] As of June 30, 2016, Apex Oil Company, Inc. ("Apex") owns 1,550,000 of the total 11,952,500 common units - public.

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EARNINGS PER UNIT AND CASH DISTRIBUTIONS (Details 2)	6 Months Ended
	Jun. 30, 2016
Minimum Quarterly Distribution [Member]
Earning Per Share and Cash Distributions [Line Items]
Total Quarterly Distribution Target Amount Description	$0.30
Marginal Percentage Interest In Distributions To Unitholders	100.00%
Marginal Percentage Interest In Distributions To Holders Of IDRs	0.00%
First Target Distribution [Member]
Earning Per Share and Cash Distributions [Line Items]
Total Quarterly Distribution Target Amount Description	above $0.30 up to $0.345
Marginal Percentage Interest In Distributions To Unitholders	100.00%
Marginal Percentage Interest In Distributions To Holders Of IDRs	0.00%
Second Target Distribution [Member]
Earning Per Share and Cash Distributions [Line Items]
Total Quarterly Distribution Target Amount Description	above $0.345 up to $0.375
Marginal Percentage Interest In Distributions To Unitholders	85.00%
Marginal Percentage Interest In Distributions To Holders Of IDRs	15.00%
Third Target Distribution [Member]
Earning Per Share and Cash Distributions [Line Items]
Total Quarterly Distribution Target Amount Description	above $0.375 up to $0.450
Marginal Percentage Interest In Distributions To Unitholders	75.00%
Marginal Percentage Interest In Distributions To Holders Of IDRs	25.00%
Thereafter [Member]
Earning Per Share and Cash Distributions [Line Items]
Total Quarterly Distribution Target Amount Description	above $0.450
Marginal Percentage Interest In Distributions To Unitholders	50.00%
Marginal Percentage Interest In Distributions To Holders Of IDRs	50.00%

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EARNINGS PER UNIT AND CASH DISTRIBUTIONS (Details 3) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015
Earning Per Share and Cash Distributions [Line Items]
Distribution Made to Limited Partner, Declaration Date	Jul. 15, 2016	Apr. 14, 2016	Jan. 14, 2016	Oct. 14, 2015	Jul. 16, 2015	Apr. 21, 2015
Distribution Made to Limited Partner, Cash Distributions Declared	$ 10,458	$ 10,458	$ 10,458	$ 10,458	$ 10,458	$ 10,458
Distribution Made to Limited Partner, Distributions Declared, Per Unit	$ 0.3000	$ 0.3000	$ 0.3000	$ 0.3000	$ 0.3000	$ 0.3000

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EARNINGS PER UNIT AND CASH DISTRIBUTIONS (Details Textual) - $ / shares	3 Months Ended						6 Months Ended
	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2016
Earning Per Share and Cash Distributions [Line Items]
Weighted Average Number of Shares Outstanding, Basic							11,952,500
Distribution Made to Limited Partner, Distributions Declared, Per Unit	$ 0.3000	$ 0.3000	$ 0.3000	$ 0.3000	$ 0.3000	$ 0.3000
First Target Distribution [Member]
Earning Per Share and Cash Distributions [Line Items]
Marginal Percentage Interest In Distribution To Unit Holders							100.00%
Marginal Percentage Interest In Distribution To Holder Of Idrs							0.00%
Distribution Made to Limited Partner, Distributions Declared, Per Unit							$ 0.345
Second Target Distribution [Member]
Earning Per Share and Cash Distributions [Line Items]
Marginal Percentage Interest In Distribution To Unit Holders							85.00%
Marginal Percentage Interest In Distribution To Holder Of Idrs							15.00%
Distribution Made to Limited Partner, Distributions Declared, Per Unit							$ 0.375
Third Target Distribution [Member]
Earning Per Share and Cash Distributions [Line Items]
Marginal Percentage Interest In Distribution To Unit Holders							75.00%
Marginal Percentage Interest In Distribution To Holder Of Idrs							25.00%
Distribution Made to Limited Partner, Distributions Declared, Per Unit							$ 0.45
Thereafter [Member]
Earning Per Share and Cash Distributions [Line Items]
Marginal Percentage Interest In Distribution To Unit Holders							50.00%
Marginal Percentage Interest In Distribution To Holder Of Idrs							50.00%
Apex Oil Company, Inc [Member]
Earning Per Share and Cash Distributions [Line Items]
Weighted Average Number of Shares Outstanding, Basic							1,550,000

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FINANCIAL INSTRUMENTS (Details Textual) - Sales Revenue, Net [Member]	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Customer One [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Concentration Risk, Percentage	42.00%	38.00%
Third-party customer [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Concentration Risk, Percentage	11.00%	11.00%

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FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	$ 3,938	$ 3,857
Total assets at fair value	15,902	16,043
Long-term incentive plan liability	5	4
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	3,938	3,857
Total assets at fair value	15,902	16,043
Long-term incentive plan liability	0	0
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	0	0
Total assets at fair value	0	0
Long-term incentive plan liability	5	4
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	0	0
Total assets at fair value	0	0
Long-term incentive plan liability	0	0
Exchange traded debt securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	533	517
Exchange traded debt securities [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	533	517
Exchange traded debt securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	0	0
Exchange traded debt securities [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	0	0
Preferred stocks [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	3,405	3,340
Preferred stocks [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	3,405	3,340
Preferred stocks [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	0	0
Preferred stocks [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total short-term investments	0	0
Cash and cash equivalents [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	11,964	12,186
Cash and cash equivalents [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	11,964	12,186
Cash and cash equivalents [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	0	0
Cash and cash equivalents [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	$ 0	$ 0

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ALLOWANCE FOR DOUBTFUL RECEIVABLES (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Allowance For Doubtful Receivables [Line Items]
Allowance for doubtful receivable at January 1	$ 25	$ 8
Additions charged to expense	41	28
Subtractions included in income	0	(11)
Allowance for doubtful receivable ending value	$ 66	$ 25

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PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Cost	$ 337,159	$ 325,193
Accumulated Depreciation	165,023	153,705
Net Book Value	172,136	171,488
Land [Member]
Property, Plant and Equipment [Line Items]
Cost	32,564	32,564
Accumulated Depreciation	0	0
Net Book Value	32,564	32,564
Tanks and appenditures [Member]
Property, Plant and Equipment [Line Items]
Cost	246,798	241,985
Accumulated Depreciation	144,166	135,031
Net Book Value	102,632	106,954
Docks and jetties [Member]
Property, Plant and Equipment [Line Items]
Cost	17,943	17,937
Accumulated Depreciation	7,482	6,634
Net Book Value	10,461	11,303
Machinery and equipment [Member]
Property, Plant and Equipment [Line Items]
Cost	10,251	10,081
Accumulated Depreciation	7,749	7,026
Net Book Value	2,502	3,055
Buildings [Member]
Property, Plant and Equipment [Line Items]
Cost	2,710	2,628
Accumulated Depreciation	960	897
Net Book Value	1,750	1,731
Other [Member]
Property, Plant and Equipment [Line Items]
Cost	11,847	11,153
Accumulated Depreciation	4,666	4,117
Net Book Value	7,181	7,036
Assets under construction [Member]
Property, Plant and Equipment [Line Items]
Cost	15,046	8,845
Accumulated Depreciation	0	0
Net Book Value	$ 15,046	$ 8,845

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TERMINAL ACQUISITIONS (Details) $ in Thousands	Jun. 30, 2016 USD ($)
Contribution consideration
Property, plant and equipment	$ 25,304
Goodwill	182
Acquired customer contracts	5,700
Total consideration	31,186
Closing costs	48
Additive inventory	53
Total terminal cost	$ 31,287

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TERMINAL ACQUISITIONS (Details Textual) $ in Thousands	12 Months Ended
	Dec. 31, 2015 shares bbl	Dec. 31, 2014 USD ($)	Jun. 30, 2016 USD ($)	Sep. 14, 2015 USD ($) bbl
Business Acquisition [Line Items]
Business Acquisition, Transaction Costs			$ 48
Maryland [Member]
Business Acquisition [Line Items]
Total Storage capacity of terminals (In Actuals) | bbl				177,000
Property, Plant, and Equipment, Fair Value Disclosure				$ 965
North Carolina [Member]
Business Acquisition [Line Items]
Total Storage capacity of terminals (In Actuals) | bbl	684,000
Stock Issued During Period, Shares, Acquisitions | shares	1,550,000
Business Combination, Consideration Transferred		$ 31,186
Business Acquisition, Transaction Costs		$ 48

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ACQUIRED CUSTOMER CONTRACTS (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Acquired Finite-Lived Intangible Assets [Line Items]
Cost	$ 5,700	$ 5,700
Less accumulated amortization	(1,710)	(1,140)
Acquired customer contracts, Total	$ 3,990	$ 4,560

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ACQUIRED CUSTOMER CONTRACTS (Details Textual) $ in Thousands	Jun. 30, 2016 USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	$ 5,700

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COMMITMENTS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Commitments [Line Items]
Operating Leases, Rent Expense	$ 244	$ 304	$ 546	$ 577

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COMMITMENTS (Details 1) $ in Thousands	Jun. 30, 2016 USD ($)
Commitments [Line Items]
2016	$ 269
2017	577
2018	570
2019	479
2020	43
Thereafter	5
Operating Leases, Future Minimum Payments Due, Total	$ 1,943

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COMMITMENTS (Details Textual)	6 Months Ended
	Jun. 30, 2016
Commitments [Line Items]
Lease Expiration Term	expire from March31, 2017 through February1, 2061

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DEBT (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Line of Credit Facility, Periodic Payment, Interest	$ 151	$ 152	$ 303	$ 302

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DEBT (Details Textual) - USD ($) $ in Thousands	Aug. 14, 2013	Jun. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Debt Instrument, Future Estimated Minimum Loan Commitment Fees		$ 1,290	$ 1,593
Swing Line Loans [Member]
Debt Instrument [Line Items]
Letters of Credit Outstanding, Amount	$ 20,000
Bank of Tokyo-Mitsubishi UFJ, Ltd [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	200,000
Letters of Credit Outstanding, Amount	20,000
Line of Credit Facility, Collateral Fees, Amount	910
Line Of Credit Facility Increase In Commitment Maximum Limit	$ 100,000

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ASSET RETIREMENT OBLIGATIONS (Details Textual) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Asset Retirement Obligations [Line Items]
Asset Retirement Obligations, Noncurrent	$ 677	$ 658
Credit Derivative, Maximum Exposure, Undiscounted	$ 10,135
Maximum [Member]
Asset Retirement Obligations [Line Items]
Lease Expiration Date	Feb. 01, 2061
Minimum [Member]
Asset Retirement Obligations [Line Items]
Lease Expiration Date	Jul. 13, 2034

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EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Defined Benefit Plan Disclosure [Line Items]
Defined Contribution Plan, Cost Recognized	$ 69	$ 62	$ 121	$ 119

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INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Tax Disclosure [Line Items]
Current	$ 43	$ 22	$ 92	$ 30

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RELATED PARTY TRANSACTIONS AND BALANCES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Related Party Transaction [Line Items]
Operating costs	$ 1,015	$ 653	$ 1,986	$ 1,386
Reimbursement for management and marketing services	574	441	1,186	891
Total Charges For Related Party Services	$ 1,589	$ 1,094	$ 3,172	$ 2,277

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RELATED PARTY TRANSACTIONS AND BALANCES (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Related Party Transaction [Line Items]
Affiliate revenues	$ 10,403	$ 9,254	$ 20,988	$ 19,123

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RELATED PARTY TRANSACTIONS AND BALANCES (Details 2) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Accounts receivable - affiliates	$ 1,204	$ 810
Prepaid insurance - affiliates	729	110
Due to affiliates	284	1,431
Deferred revenue - short-term - affiliates	1,608	802
Deferred revenue - long-term - affiliates	$ 4,692	$ 2,071

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DEFERRED REVENUE (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Deferred Revenue [Line Items]
Balance at January 1	$ 3,127	$ 1,762
Additions	4,115	2,001
Amortization	(602)	(636)
Balance at period end	6,640	3,127
Deferred revenue - short-term - affiliates	1,608	802
Deferred revenue - long-term	340	254
Deferred revenue - long-term - affiliates	$ 4,692	$ 2,071

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EQUITY-BASED COMPENSATION (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Restricted Stock Units (RSUs) [Member]
Equity Based Compensation Non Cash Compensaion Expense [Line Items]
Non-cash compensation expense	$ 635	$ 635	$ 1,270	$ 1,270

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EQUITY-BASED COMPENSATION (Details 1)	6 Months Ended
	Jun. 30, 2016 $ / shares shares
September 24, 2013 [Memeber]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
UARs Awarded	0	[1]
Restricted Units Awarded	90,000	[1]
Vested Units	33,330	[1]
Fair Value at Award Date | $ / shares	$ 20.21	[1]
April 23, 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
UARs Awarded	0	[2]
Restricted Units Awarded	250,000	[2]
Vested Units	0	[2]
Fair Value at Award Date | $ / shares	$ 23.2	[2]
July 6, 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
UARs Awarded	25,000	[3]
Restricted Units Awarded	0	[3]
Vested Units	0	[3]
Fair Value at Award Date | $ / shares	$ 16.95	[3]

[1] Units awarded to directors of General Partner and Parent

[2] Units awarded to the chairman of General Partner

[3] UARs awarded to an employee of the General Partner

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EQUITY-BASED COMPENSATION (Details Textual) - USD ($) $ in Thousands		3 Months Ended	6 Months Ended
		Jun. 30, 2016	Jun. 30, 2016	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized				3,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			340,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total		$ 1,727	$ 1,727
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			3 years
July 6, 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unit Appreciation Rights Awarded	[1]		25,000
unit appreciation rights [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock or Unit Option Plan Expense		$ 2	$ 1

[1] UARs awarded to an employee of the General Partner

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SUBSEQUENT EVENTS (Details Textual) - $ / shares		3 Months Ended
	Jul. 15, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015
Subsequent Event [Line Items]
Distribution Made to Limited Partner, Distributions Declared, Per Unit		$ 0.3000	$ 0.3000	$ 0.3000	$ 0.3000	$ 0.3000	$ 0.3000
Subsequent Event [Member] | Board of Directors [Member]
Subsequent Event [Line Items]
Distribution Made to Limited Partner, Distributions Declared, Per Unit	$ 0.30