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

o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______________ to _______________

Commission file number 1-36232

VALERO ENERGY PARTNERS LP

(Exact name of registrant as specified in its charter)

Delaware	90-1006559
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

One Valero Way

San Antonio, Texas

(Address of principal executive offices)

78249

(Zip Code)

(210) 345-2000

(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 o

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 o

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.

Large accelerated filer þ Accelerated filer o Non-accelerated filer o Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes o No þ

The registrant had 37,262,986 common units, 28,789,989 subordinated units, and 1,347,702 general partner units outstanding at July 29, 2016.

VALERO ENERGY PARTNERS LP

TABLE OF CONTENTS

	Page
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets as of June 30, 2016 and December 31, 2015	1
Consolidated Statements of Income for the Three and Six Months Ended June 30, 2016 and 2015	2
Consolidated Statements of Partners’ Capital for the Six Months Ended June 30, 2016 and 2015	3
Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2016 and 2015	4
Condensed Notes to Consolidated Financial Statements	5
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	28
Item 3. Quantitative and Qualitative Disclosures About Market Risk	42
Item 4. Controls and Procedures	43
PART II – OTHER INFORMATION
Item 1. Legal Proceedings	44
Item 1A. Risk Factors	44
Item 6. Exhibits	44
SIGNATURE	45

i

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

VALERO ENERGY PARTNERS LP

CONSOLIDATED BALANCE SHEETS

(In Thousands)

(Unaudited)

	June 30, 2016			December 31, 2015 (a)
ASSETS
Current assets:
Cash and cash equivalents	$	67,167		$	80,783
Receivables from related party	23,614			18,088
Prepaid expenses and other	1,081			632
Total current assets	91,862			99,503
Property and equipment, at cost	1,132,034			1,110,399
Accumulated depreciation	(331,213		)	(310,558		)
Property and equipment, net	800,821			799,841
Deferred charges and other assets, net	2,987			3,322
Total assets	$	895,670		$	902,666
LIABILITIES AND PARTNERS’ CAPITAL
Current liabilities:
Current portion of capital lease obligations	$	250		$	913
Accounts payable	6,809			9,264
Accrued liabilities	1,276			1,062
Accrued liabilities – related party	677			628
Taxes other than income taxes	1,679			1,276
Deferred revenue from related party	1,263			129
Total current liabilities	11,954			13,272
Debt and capital lease obligations, net of current portion	314,065			175,246
Notes payable to related party	370,000			370,000
Deferred income taxes	504			320
Other long-term liabilities	1,142			1,116
Commitments and contingencies
Partners’ capital:
Common unitholders – public (21,515,609 and 21,509,651 units outstanding)	594,881			581,489
Common unitholder – Valero (15,747,377 and 15,018,602 units outstanding)	15,895			28,430
Subordinated unitholder – Valero (28,789,989 and 28,789,989 units outstanding)	(406,344		)	(313,961		)
General partner – Valero (1,347,702 and 1,332,829 units outstanding)	(6,427		)	(5,805		)
Net investment	—			52,559
Total partners’ capital	198,005			342,712
Total liabilities and partners’ capital	$	895,670		$	902,666
(a) Financial information has been retrospectively adjusted for the acquisition of the McKee Terminal Services Business from Valero Energy Corporation. See Notes 1 and 3.

See Condensed Notes to Consolidated Financial Statements.

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VALERO ENERGY PARTNERS LP

CONSOLIDATED STATEMENTS OF INCOME

(In Thousands, Except Per Unit Amounts)

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015 (a)			2016			2015 (a)
Operating revenues – related party	$	87,664		$	60,245		$	166,431		$	102,131
Costs and expenses:
Operating expenses (b)	20,520			22,191			41,397			46,487
General and administrative expenses (c)	3,578			3,312			7,806			7,024
Depreciation expense	10,622			9,904			21,243			19,343
Total costs and expenses	34,720			35,407			70,446			72,854
Operating income	52,944			24,838			95,985			29,277
Other income, net	57			26			134			137
Interest and debt expense, net of capitalized interest (d)	(3,251		)	(1,411		)	(5,910		)	(2,012		)
Income before income taxes	49,750			23,453			90,209			27,402
Income tax expense (benefit)	303			(51		)	545			(177		)
Net income	49,447			23,504			89,664			27,579
Less: Net loss attributable to Predecessor	—			(10,158		)	(3,081		)	(28,204		)
Net income attributable to partners	49,447			33,662			92,745			55,783
Less: General partner’s interest in net income	5,213			1,357			8,717			2,209
Limited partners’ interest in net income	$	44,234		$	32,305		$	84,028		$	53,574
Net income per limited partner unit – basic and diluted:
Common units	$	0.67		$	0.54		$	1.28		$	0.91
Subordinated units	$	0.67		$	0.54		$	1.28		$	0.90
Weighted-average limited partner units outstanding:
Common units – basic and diluted	37,248			30,698			36,884			30,066
Subordinated units – basic and diluted	28,790			28,790			28,790			28,790
Cash distribution declared per unit	$	0.3650		$	0.2925		$	0.7050		$	0.5700
(a) Financial information has been retrospectively adjusted for the acquisitions of the McKee Terminal Services Business and the Corpus Christi Terminal Services Business from Valero Energy Corporation. See Notes 1 and 3.
Supplemental information – each income statement line item reflected below includes expenses incurred for services or financing provided by related party as follows:
(b) Operating expenses – related party	$	10,863		$	10,643		$	21,796		$	20,478
(c) General and administrative expenses – related party	$	2,998		$	2,800		$	5,923		$	5,459
(d) Interest and debt expense – related party	$	1,584		$	578		$	3,150		$	768

See Condensed Notes to Consolidated Financial Statements.

2

VALERO ENERGY PARTNERS LP

CONSOLIDATED STATEMENTS OF PARTNERS’ CAPITAL

(In Thousands)

(Unaudited)

	Partnership
	Common Unitholders Public			Common Unitholder Valero			Subordinated Unitholder Valero			General Partner Valero			Net Investment			Total
Balance as of December 31, 2014 (a)	$	374,954		$	58,844		$	146,804		$	4,617		$	436,751		$	1,021,970
Net income (loss):
Attributable to Predecessor (b)	—			—			—			—			(28,204		)	(28,204		)
Attributable to partners	15,703			11,665			26,205			2,210			—			55,783
Net transfers from Valero Energy Corporation (b)	—			—			—			—			35,122			35,122
Allocation of Valero Energy Corporation’s net investment in the Houston and St. Charles Terminal Services Business	—			82,330			205,396			8,383			(296,109		)	—
Consideration paid to Valero Energy Corporation for the acquisition of the Houston and St. Charles Terminal Services Business	—			(186,625		)	(465,592		)	(19,003		)	—			(671,220		)
Units issued to Valero Energy Corporation in connection with the acquisition of the Houston and St. Charles Terminal Services Business	—			98,000			—			2,000			—			100,000
Noncash capital contributions from Valero Energy Corporation	—			2,273			4,866			204			—			7,343
Cash distributions to unitholders	(9,375		)	(6,802		)	(15,647		)	(1,265		)	—			(33,089		)
Distribution equivalent right payments	(6		)	—			—			—			—			(6		)
Unit-based compensation	88			—			—			—			—			88
Balance as of June 30, 2015 (b)	$	381,364		$	59,685		$	(97,968	)	$	(2,854	)	$	147,560		$	487,787
Balance as of December 31, 2015 (a)	$	581,489		$	28,430		$	(313,961	)	$	(5,805	)	$	52,559		$	342,712
Net income (loss):
Attributable to Predecessor	—			—			—			—			(3,081		)	(3,081		)
Attributable to partners	27,503			19,699			36,826			8,717			—			92,745
Net transfers from Valero Energy Corporation	—			—			—			—			1,883			1,883
Allocation of Valero Energy Corporation’s net investment in the McKee Terminal Services Business	—			17,088			32,758			1,515			(51,361		)	—
Consideration paid to Valero Energy Corporation for the acquisition of the McKee Terminal Services Business	—			(79,848		)	(153,067		)	(7,085		)	—			(240,000		)
Units issued to Valero Energy Corporation in connection with the acquisition of the McKee Terminal Services Business	—			35,280			—			720			—			36,000
Offering costs	(6		)	—			—			—			—			(6		)
Noncash capital contributions from Valero Energy Corporation	—			5,407			10,101			470			—			15,978
Cash distributions to unitholders	(14,189		)	(10,161		)	(19,001		)	(4,959		)	—			(48,310		)
Distribution equivalent right payments	(9		)	—			—			—			—			(9		)
Unit-based compensation	93			—			—			—			—			93
Balance as of June 30, 2016	$	594,881		$	15,895		$	(406,344	)	$	(6,427	)	$	—		$	198,005
(a) Financial information has been retrospectively adjusted for the acquisition of the McKee Terminal Services Business from Valero Energy Corporation. See Notes 1 and 3.
(b) Financial information has been retrospectively adjusted for the acquisitions of the McKee Terminal Services Business and the Corpus Christi Terminal Services Business from Valero Energy Corporation. See Notes 1 and 3.

See Condensed Notes to Consolidated Financial Statements.

3

VALERO ENERGY PARTNERS LP

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

(Unaudited)

	Six Months Ended June 30,
	2016			2015 (a)
Cash flows from operating activities:
Net income	$	89,664		$	27,579
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	21,243			19,343
Deferred income tax expense (benefit)	219			(395		)
Changes in current assets and current liabilities	(3,442		)	(6,073		)
Changes in deferred charges and credits and other operating activities, net	249			459
Net cash provided by operating activities	107,933			40,913
Cash flows from investing activities:
Capital expenditures	(9,325		)	(18,291		)
Acquisitions from Valero Energy Corporation	(51,361		)	(296,109		)
Other investing activities, net	18			14
Net cash used in investing activities	(60,668		)	(314,386		)
Cash flows from financing activities:
Proceeds from debt borrowings	139,000			200,000
Proceeds from note payable to related party	—			160,000
Payments of capital lease obligations	(663		)	(580		)
Payment of offering costs	(108		)	—
Excess purchase price paid to Valero Energy Corporation over the carrying value of acquired assets	(152,639		)	(275,111		)
Cash distributions to unitholders and distribution equivalent right payments	(48,319		)	(33,095		)
Net transfers from Valero Energy Corporation	1,848			37,722
Net cash provided by (used in) financing activities	(60,881		)	88,936
Net decrease in cash and cash equivalents	(13,616		)	(184,537		)
Cash and cash equivalents at beginning of period	80,783			236,579
Cash and cash equivalents at end of period	$	67,167		$	52,042
(a) Financial information has been retrospectively adjusted for the acquisitions of the McKee Terminal Services Business and the Corpus Christi Terminal Services Business from Valero Energy Corporation. See Notes 1 and 3.

See Condensed Notes to Consolidated Financial Statements.

4

VALERO ENERGY PARTNERS LP

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. BUSINESS AND BASIS OF PRESENTATION

Business

Valero Energy Partners LP (the Partnership) is a fee-based, master limited partnership formed by Valero (defined below) in July 2013 to own, operate, develop, and acquire crude oil and refined petroleum products pipelines, terminals, and other transportation and logistics assets.

References in this report to “Partnership,” “we,” “us,” or “our” refer to Valero Energy Partners LP, one or more of its subsidiaries, or all of them taken as a whole. References in this report to “Valero” refer collectively to Valero Energy Corporation and its subsidiaries, other than Valero Energy Partners LP, any of its subsidiaries, or its general partner.

We acquired the McKee Terminal Services Business, the Corpus Christi Terminal Services Business, and the Houston and St. Charles Terminal Services Business from Valero (collectively, the Acquisitions) on April 1, 2016, October 1, 2015, and March 1, 2015, respectively. See Note 3 for further discussion of the Acquisitions. Our assets consist of crude oil and refined petroleum products pipeline and terminal systems in the United States (U.S.) Gulf Coast and U.S. Mid-Continent regions that are integral to the operations of nine of Valero’s refineries.

We generate operating revenues by providing fee-based transportation and terminaling services to Valero.

Basis of Presentation

Our consolidated financial statements include the accounts of the Partnership as well as our Predecessor (defined below). All intercompany accounts and transactions have been eliminated.

The Acquisitions were accounted for as transfers of businesses between entities under the common control of Valero. As entities under the common control of Valero, we recorded the Acquisitions on our balance sheet at Valero’s carrying value rather than fair value. Transfers between entities under common control are accounted for as though the transfer occurred as of the beginning of the period of transfer, and prior period financial statements and financial information are retrospectively adjusted to furnish comparative information. Accordingly, the Partnership’s financial statements and related notes have been retrospectively adjusted to include the historical results of the Acquisitions for all periods presented prior to the effective dates of each acquisition. We refer to the historical results of the Acquisitions prior to their respective acquisition dates as those of our “Predecessor.”

The combined financial statements of our Predecessor were derived from the consolidated financial statements and accounting records of Valero and reflect the combined historical financial position, results of operations, and cash flows of our Predecessor as if the Acquisitions had been combined for periods prior to the effective dates of each acquisition.

There were no transactions between the operations of our Predecessor; therefore, there were no intercompany transactions or accounts to be eliminated in connection with the combination of those operations. In addition, our Predecessor’s statements of income include direct charges for the management and operation of our assets and certain expenses allocated by Valero for general corporate services, such as treasury, accounting, and legal services. These expenses were charged, or allocated, to our Predecessor based on the nature of the

5

VALERO ENERGY PARTNERS LP

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

expenses. Prior to the Acquisitions, our Predecessor transferred cash to Valero daily and Valero funded our Predecessor’s operating and investing activities as needed. Therefore, transfers of cash to and from Valero’s cash management system are reflected as a component of net investment and are reflected as a financing activity in our statements of cash flows. In addition, interest expense was not included on the net cash transfers from Valero.

The financial information presented for the periods after the effective dates of the Acquisitions represents the consolidated financial position, results of operations, and cash flows of the Partnership.

These unaudited financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Act of 1934. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All such adjustments are of a normal recurring nature unless disclosed otherwise. Financial information for the three and six months ended June 30, 2016 and 2015 included in these Condensed Notes to Consolidated Financial Statements is derived from our unaudited financial statements. Operating results for the three and six months endedJune 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016.

The balance sheet as of December 31, 2015 has been derived from our audited financial statements as of that date, retrospectively adjusted for the acquisition of the McKee Terminal Services Business on April 1, 2016 (see Note 3). For further information, refer to our financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2015.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. On an ongoing basis, we review our estimates based on currently available information. Changes in facts and circumstances may result in revised estimates.

Accounting Pronouncements Adopted During the Period

In April 2015, the provisions of Accounting Standards Codification (ASC) Subtopic 835-30, “Interest–Imputation of Interest,” were amended to simplify the presentation of debt issuance costs. The guidance requires that debt issuance costs related to a note be reported in the balance sheet as a direct deduction from the face amount of that note, consistent with debt discounts, and that amortization of debt issuance costs be reported as interest expense. In August 2015, these provisions were further amended with guidance from the Securities and Exchange Commission staff, which provides that the staff would not object to an entity deferring and presenting debt issuance costs related to a line-of-credit arrangement as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. These provisions were effective for annual reporting periods beginning after December 15, 2015, and interim periods within those annual periods. The adoption of this guidance effective January 1, 2016 did not affect

6

VALERO ENERGY PARTNERS LP

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

our financial position or results of operations as our debt issuance costs are associated with our revolving credit facility and therefore were not required to be reclassified.

Also in April 2015, the provisions of ASC Topic 260, “Earnings Per Share,” were amended to provide guidance on how master limited partnerships apply the two-class method of calculating earnings per unit for historical periods when they receive net assets in a dropdown transaction that is accounted for as a transaction between entities under common control as required under Subtopic 805-50, “Business Combinations–Related Issues.” The amendments specify that for purposes of calculating earnings per unit under the two-class method for periods before the date of a dropdown transaction, earnings or losses of a transferred business should be allocated entirely to the general partner. Qualitative disclosures are also required to describe how the rights to earnings or losses differ before and after the dropdown transaction for purposes of computing earnings per unit under the two-class method. These provisions were effective for annual reporting periods beginning after December 15, 2015, and interim periods within those annual periods. We have historically calculated our net income per unit after a dropdown transaction as prescribed by these provisions; therefore, the adoption of this guidance effective January 1, 2016 did not affect our financial position or results of operations, but resulted in additional disclosures as shown in Note 9.

In November 2015, the provisions of ASC Topic 740, “Income Taxes,” were amended to simplify the presentation of deferred income taxes. The amendments require that deferred tax liabilities and assets be classified as noncurrent in a classified balance sheet. The amendments are effective for financial statements for annual periods beginning after December 15, 2016, and interim periods within those annual periods, with early adoption permitted as of the beginning of any interim or annual period. Effective January 1, 2016, we adopted this guidance on a retrospective basis, but such adoption did not affect our financial position as we had no current deferred tax amounts to reclassify.

Accounting Pronouncements Not Yet Adopted

In May 2014, the ASC was amended and a new accounting standard, ASC Topic 606, “Revenue from Contracts with Customers,” was issued to clarify the principles for recognizing revenue. The standard is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual periods. We are currently evaluating the effect that adopting this standard will have on our financial statements and related disclosures.

In January 2016, the provisions of ASC Subtopic 825-10, “Financial Instruments–Overall,” were amended to enhance the reporting model for financial instruments regarding certain aspects of recognition, measurement, presentation, and disclosure. These provisions are effective for annual reporting periods beginning after December 15, 2017, and interim periods within those annual periods. We are currently evaluating the effect that adopting this standard will have on our financial statements and related disclosures.

In February 2016, the ASC was amended and a new accounting standard, ASC Topic 842, “Leases,” was issued to increase the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The new standard is effective for public companies for annual reporting periods beginning after December 15, 2018, and interim reporting periods within those annual periods, with early adoption permitted. We are currently evaluating the effect that adopting this standard will have on our financial statements and related disclosures.

7

VALERO ENERGY PARTNERS LP

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

3. ACQUISITIONS

Acquisition in 2016

McKee Terminal Services Business

Effective April 1, 2016, we acquired a subsidiary from Valero that owns and operates a crude oil, intermediates, and refined petroleum products terminal that supports Valero’s McKee Refinery (in Sunray, Texas) for total consideration of $240.0 million, which consisted of (i) a cash distribution of $204.0 million and (ii) the issuance of 728,775 common units and 14,873 general partner units having an aggregate value of $36.0 million. We funded the cash distribution to Valero with $65.0 million of our cash on hand and $139.0 million of borrowings under our revolving credit facility. See Note 6 for further discussion of the borrowings under our revolving credit facility.

Acquisitions in 2015

Corpus Christi Terminal Services Business

Effective October 1, 2015, we acquired Valero’s Corpus Christi East Terminal and Corpus Christi West Terminal (collectively, the Corpus Christi Terminal Services Business) for total consideration of $465.0 million, which consisted of (i) a cash distribution of $395.0 million and (ii) the issuance of 1,570,513 common units and 32,051 general partner units having an aggregate value of $70.0 million. We funded the cash distribution to Valero with $395.0 million of proceeds from a subordinated credit agreement with Valero. The Corpus Christi Terminal Services Business is engaged in the business of terminaling crude oil, intermediates, and refined petroleum products at terminals in Corpus Christi, Texas and supports Valero’s Corpus Christi East and West Refineries. See Note 6 for further discussion of the borrowings under this subordinated credit agreement.

Houston and St. Charles Terminal Services Business

Effective March 1, 2015, we acquired two subsidiaries from Valero that own and operate crude oil, intermediates, and refined petroleum products terminals supporting Valero’s Houston Refinery (in Houston, Texas) and St. Charles Refinery (in Norco, Louisiana) for total consideration of $671.2 million, which consisted of (i) a cash distribution of $571.2 million and (ii) the issuance of 1,908,100 common units and 38,941 general partner units having an aggregate value of $100.0 million. We funded the cash distribution to Valero with $211.2 million of our cash on hand, $200.0 million of borrowings under our revolving credit facility, and $160.0 million of proceeds from a subordinated credit agreement we entered into with Valero. See Note 6 for further discussion of the borrowings under our revolving credit facility and this subordinated credit agreement.

8

VALERO ENERGY PARTNERS LP

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Presentation of Reported Financial Information

The following table presents our previously reported balance sheet as of December 31, 2015 retrospectively adjusted for the acquisition of the McKee Terminal Services Business (in thousands). The assets and liabilities of the Houston and St. Charles Terminal Services Business and the Corpus Christi Terminal Services Business are included in our previously reported balance sheet as of December 31, 2015.

	Valero Energy Partners LP (Previously Reported)			McKee Terminal  Services Business			Valero Energy Partners LP (Currently Reported)
ASSETS
Current assets:
Cash and cash equivalents	$	80,783		$	—		$	80,783
Receivables from related party	18,088			—			18,088
Prepaid expenses and other	632			—			632
Total current assets	99,503			—			99,503
Property and equipment, at cost	1,010,881			99,518			1,110,399
Accumulated depreciation	(263,599		)	(46,959		)	(310,558		)
Property and equipment, net	747,282			52,559			799,841
Deferred charges and other assets, net	3,322			—			3,322
Total assets	$	850,107		$	52,559		$	902,666
LIABILITIES AND PARTNERS’ CAPITAL
Current liabilities:
Current portion of capital lease obligations	$	913		$	—		$	913
Accounts payable	9,264			—			9,264
Accrued liabilities	1,062			—			1,062
Accrued liabilities – related party	628			—			628
Taxes other than income taxes	1,276			—			1,276
Deferred revenue from related party	129			—			129
Total current liabilities	13,272			—			13,272
Debt and capital lease obligations, net of current portion	175,246			—			175,246
Notes payable to related party	370,000			—			370,000
Deferred income taxes	320			—			320
Other long-term liabilities	1,116			—			1,116
Partners’ capital:
Common unitholders – public	581,489			—			581,489
Common unitholder – Valero	28,430			—			28,430
Subordinated unitholder – Valero	(313,961		)	—			(313,961		)
General partner – Valero	(5,805		)	—			(5,805		)
Net investment	—			52,559			52,559
Total partners’ capital	290,153			52,559			342,712
Total liabilities and partners’ capital	$	850,107		$	52,559		$	902,666

9

VALERO ENERGY PARTNERS LP

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The following tables present our previously reported statements of income for the three and six months ended June 30, 2015 retrospectively adjusted for the acquisitions of the McKee Terminal Services Business and the Corpus Christi Terminal Services Business (in thousands). The results of operations of the Houston and St. Charles Terminal Services Business are included in our previously reported statements of income for the three and six months ended June 30, 2015.

	Three Months Ended June 30, 2015
	Valero Energy Partners LP (Previously Reported)			McKee Terminal Services Business			Corpus Christi Terminal  Services  Business			Valero Energy Partners LP (Currently Reported)
Operating revenues – related party	$	60,245		$	—		$	—		$	60,245
Costs and expenses:
Operating expenses	14,374			1,686			6,131			22,191
General and administrative expenses	3,160			63			89			3,312
Depreciation expense	7,715			1,125			1,064			9,904
Total costs and expenses	25,249			2,874			7,284			35,407
Operating income (loss)	34,996			(2,874		)	(7,284		)	24,838
Other income, net	26			—			—			26
Interest and debt expense, net of capitalized interest	(1,411		)	—			—			(1,411		)
Income (loss) before income taxes	33,611			(2,874		)	(7,284		)	23,453
Income tax benefit	(51		)	—			—			(51		)
Net income (loss)	33,662			(2,874		)	(7,284		)	23,504
Less: Net loss attributable to Predecessor	—			(2,874		)	(7,284		)	(10,158		)
Net income attributable to partners	$	33,662		$	—		$	—		$	33,662

10

VALERO ENERGY PARTNERS LP

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

	Six Months Ended June 30, 2015
	Valero Energy Partners LP (Previously Reported)			McKee Terminal Services Business			Corpus Christi Terminal  Services  Business			Valero Energy Partners LP (Currently Reported)
Operating revenues – related party	$	102,131		$	—		$	—		$	102,131
Costs and expenses:
Operating expenses	32,238			3,358			10,891			46,487
General and administrative expenses	6,725			123			176			7,024
Depreciation expense	15,203			2,254			1,886			19,343
Total costs and expenses	54,166			5,735			12,953			72,854
Operating income (loss)	47,965			(5,735		)	(12,953		)	29,277
Other income, net	137			—			—			137
Interest and debt expense, net of capitalized interest	(2,012		)	—			—			(2,012		)
Income (loss) before income taxes	46,090			(5,735		)	(12,953		)	27,402
Income tax benefit	(177		)	—			—			(177		)
Net income (loss)	46,267			(5,735		)	(12,953		)	27,579
Less: Net loss attributable to Predecessor	(9,516		)	(5,735		)	(12,953		)	(28,204		)
Net income attributable to partners	$	55,783		$	—		$	—		$	55,783

11

VALERO ENERGY PARTNERS LP

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The following table presents our previously reported statement of cash flows for the six months ended June 30, 2015 retrospectively adjusted for the acquisitions of the McKee Terminal Services Business and the Corpus Christi Terminal Services Business (in thousands). The cash flows of the Houston and St. Charles Terminal Services Business are included in our previously reported statement of cash flows for the six months ended June 30, 2015.

	Six Months Ended June 30, 2015
	Valero Energy Partners LP (Previously Reported)			McKee Terminal Services Business			Corpus Christi Terminal  Services  Business			Valero Energy Partners LP (Currently Reported)
Cash flows from operating activities:
Net income (loss)	$	46,267		$	(5,735	)	$	(12,953	)	$	27,579
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation expense	15,203			2,254			1,886			19,343
Deferred income tax benefit	(395		)	—			—			(395		)
Changes in current assets and current liabilities	(6,073		)	—			—			(6,073		)
Changes in deferred charges and credits and other operating activities, net	459			—			—			459
Net cash provided by (used in) operating activities	55,461			(3,481		)	(11,067		)	40,913
Cash flows from investing activities:
Capital expenditures	(6,052		)	(65		)	(12,174		)	(18,291		)
Acquisition of the Houston and St. Charles Terminal Services Business from Valero Energy Corporation	(296,109		)	—			—			(296,109		)
Other investing activities, net	14			—			—			14
Net cash used in investing activities	(302,147		)	(65		)	(12,174		)	(314,386		)
Cash flows from financing activities:
Proceeds from debt borrowings	200,000			—			—			200,000
Proceeds from note payable to related party	160,000			—			—			160,000
Payments of capital lease obligations	(580		)	—			—			(580		)
Excess purchase price paid to Valero Energy Corporation over the carrying value of the Houston and St. Charles Terminal Services Business	(275,111		)	—			—			(275,111		)
Cash distributions to unitholders and distribution equivalent right payments	(33,095		)	—			—			(33,095		)
Net transfers from Valero Energy Corporation	10,935			3,546			23,241			37,722
Net cash provided by financing activities	62,149			3,546			23,241			88,936
Net decrease in cash and cash equivalents	(184,537		)	—			—			(184,537		)
Cash and cash equivalents at beginning of period	236,579			—			—			236,579
Cash and cash equivalents at end of period	$	52,042		$	—		$	—		$	52,042

12

VALERO ENERGY PARTNERS LP

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

4. RELATED-PARTY TRANSACTIONS

Agreements Effective with the Acquisition of the McKee Terminal Services Business

The following agreements became effective on April 1, 2016, in connection with our acquisition of the McKee Terminal Services Business.

Commercial Agreements

We entered into an additional schedule under our existing master terminal services agreement with respect to the McKee terminal. The schedule has an initial term through April 1, 2026, provides Valero an option to renew for one additional five-year term, and contains minimum throughput requirements and inflation escalators.

Amended and Restated Omnibus Agreement

We entered into amended and restated schedules to our amended and restated omnibus agreement with Valero that include the following modifications, among others:

• the indemnification obligations of Valero and the Partnership were extended to apply to the McKee terminal;

• the administrative fee was increased from $11.2 million to $11.7 million per year, which amount is prorated for the remainder of 2016 based on the number of days from April 1, 2016 to December 31, 2016; and

• the grant to Valero of a right of first refusal with respect to the McKee terminal.

Amended and Restated Services and Secondment Agreement

Our general partner entered into amended and restated exhibits to the amended and restated services and secondment agreement with Valero to provide for the additional secondment of employees to our general partner for the provision of services with respect to the McKee terminal.

Lease and Access Agreement

We entered into a lease and access agreement with Valero with respect to the land on which the McKee terminal is located. This agreement has an initial term through April 1, 2026 with four automatic successive renewal periods of five years each. Either party may terminate the lease after the initial term by providing written notice. Initially, our base rent is $594,000 per year and is subject to an annual inflation escalator. We are also required to pay Valero a customary expense reimbursement for taxes, utilities, and similar costs incurred by Valero related to the leased premises.

13

VALERO ENERGY PARTNERS LP

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Summary of Transactions

Receivables from related party consist of the following (in thousands):

	June 30, 2016			December 31, 2015
Trade receivables – related party	$	29,033		$	26,103
Due to related party	(5,419		)	(8,015		)
Receivables from related party	$	23,614		$	18,088

The amounts shown in our balance sheets as “deferred revenue from related party” represent the unearned revenues from Valero associated with Valero’s quarterly deficiency payment, which is the result of Valero not meeting its minimum quarterly throughput commitments under our master transportation services agreement and master terminal services agreement (collectively, the commercial agreements).

All of our operating revenues are generated by providing services to Valero under our commercial agreements with Valero. The cost of services provided to us by Valero, including the cost of financing provided to us by Valero in connection with the Acquisitions as more fully described in Notes 3 and 6, are reflected in the supplemental information disclosure on our statements of income.

Concentration Risk

All of our operating revenues were derived from transactions with Valero and all of our receivables were due from Valero. Therefore, we are subject to the business risks associated with Valero’s business.

Leases

Certain schedules under our commercial agreements with Valero are considered operating leases under U.S. GAAP. These agreements contain minimum throughput requirements and escalation clauses to adjust transportation tariffs and terminaling and storage fees to reflect changes in price indices. Revenues from all lease agreements are recorded within “operating revenues – related party” in our statements of income.

The amounts shown in our statements of income as “operating revenues – related party” included revenues from our current lease arrangements as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Minimum rental revenues	$	56,277	$	31,858	$	104,526	$	47,477
Contingent rental revenues	9,224		5,666		17,561		8,982
Total lease revenues	$	65,501	$	37,524	$	122,087	$	56,459

14

VALERO ENERGY PARTNERS LP

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

As of June 30, 2016, future minimum rentals to be received related to these noncancelable lease agreements were as follows (in thousands):

Remainder of 2016	$	114,236
2017	226,610
2018	226,610
2019	226,610
2020	227,231
Thereafter	995,947
Total minimum rental payments	$	2,017,244

15

VALERO ENERGY PARTNERS LP

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

5. PROPERTY AND EQUIPMENT

Major classes of property and equipment consisted of the following (in thousands):

	June 30, 2016
	Non-Leased Assets			Assets Under Operating Leases (a)			Total
Pipelines and related assets	$	239,239		$	46,964		$	286,203
Terminals and related assets	111,037			695,871			806,908
Other	9,479			—			9,479
Land	4,672			—			4,672
Construction-in-progress	24,772			—			24,772
Property and equipment, at cost	389,199			742,835			1,132,034
Accumulated depreciation	(124,872		)	(206,341		)	(331,213		)
Property and equipment, net	$	264,327		$	536,494		$	800,821

	December 31, 2015 (b)
	Non-Leased Assets			Assets Under Operating Leases (a)			Total
Pipelines and related assets	$	228,586		$	46,739		$	275,325
Terminals and related assets	210,276			580,194			790,470
Other	9,352			—			9,352
Land	4,672			—			4,672
Construction-in-progress	30,580			—			30,580
Property and equipment, at cost	483,466			626,933			1,110,399
Accumulated depreciation	(165,539		)	(145,019		)	(310,558		)
Property and equipment, net	$	317,927		$	481,914		$	799,841
(a) Represents assets owned by us for which we are the lessor (see Note 4). Certain assets acquired in the acquisition of the McKee Terminal Services Business were reflected as assets under operating leases subsequent to the acquisition on April 1, 2016.
(b) Financial information has been retrospectively adjusted for the acquisition of the McKee Terminal Services Business.

We have certain pipeline assets under capital lease agreements totaling $14.9 million as of June 30, 2016 and December 31, 2015. Accumulated amortization on assets under capital leases was $14.7 million and $14.1 million as of June 30, 2016 and December 31, 2015, respectively.

16

VALERO ENERGY PARTNERS LP

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

6. DEBT

Revolving Credit Facility

We have a $750.0 million senior unsecured revolving credit facility agreement (the Revolver) that matures in November 2020. We have the option to increase the aggregate commitments under the Revolver to $1.0 billion, subject to certain restrictions. The Revolver also provides for the issuance of letters of credit of up to $100.0 million. Our obligations under the Revolver are jointly and severally guaranteed by our directly owned subsidiary, Valero Partners Operating Co. LLC. Borrowings on the Revolver bear interest at a variable rate, which was 1.75 percent as of June 30, 2016. Accrued interest is payable in arrears on each Interest Payment Date (as defined in the Revolver) and on the maturity date.

In connection with the acquisition of the McKee Terminal Services Business, we borrowed $139.0 million under the Revolver on April 1, 2016. In connection with the acquisition of the Houston and St. Charles Terminal Services Business, we borrowed $200.0 million under the Revolver on March 2, 2015. See Note 3 for information about our acquisitions from Valero.

During the six months ended June 30, 2016 and 2015, we had no repayments under the Revolver. As of June 30, 2016, we had $314.0 million of borrowings outstanding and no letters of credit outstanding under the Revolver. As of December 31, 2015, we had $175.0 million of borrowings outstanding and no letters of credit outstanding under the Revolver.

Subordinated Credit Agreements

During 2015, we entered into two subordinated credit agreements with Valero (the Loan Agreements), under which we borrowed $395.0 million and $160.0 million (collectively, the loans) to finance a portion of the acquisitions of the Corpus Christi Terminal Services Business and the Houston and St. Charles Terminal Services Business, respectively, as described in Note 3. The loans mature on March 1 and October 1, 2020, respectively, and may be prepaid at any time without penalty; we are not permitted to reborrow amounts. The loans bear interest at the LIBO Rate (as defined in the Loan Agreements) plus the applicable margin. Accrued interest is payable in arrears on each Interest Payment Date (as defined in the Loan Agreements) and on each maturity date. As of June 30, 2016, the interest rate on each of the loans was 1.71 percent.

During the six months ended June 30, 2016 and 2015, we had no repayments under the loans. As of June 30, 2016 and December 31, 2015, we had $370.0 million outstanding under the Loan Agreements.

Capitalized Interest

Capitalized interest was $3,000 and $1,000 for the three months ended June 30, 2016 and 2015, respectively, and $35,000 and $6,000 for the six months endedJune 30, 2016 and 2015, respectively.

17

VALERO ENERGY PARTNERS LP

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

7. OPERATING LEASES

We have long-term operating lease commitments primarily with Valero for land used in the terminaling and transportation of crude oil and refined petroleum products. Certain leases contain escalation clauses and renewal options that allow for the same rental payment over the lease term or a revised rental payment based on fair rental value or negotiated value. Currently, one of our land leases with Valero does not contain a renewal option. We expect that, in the normal course of business, our leases will be renewed or replaced by other leases.

As of June 30, 2016, our future minimum rentals for leases having initial or remaining noncancelable lease terms in excess of one year were as follows (in thousands):

Remainder of 2016	$	4,409
2017	8,823
2018	8,780
2019	8,780
2020	8,780
Thereafter	38,707
Total minimum rental payments	$	78,279

Rental expense for all operating leases was $2.3 million and $1.9 million for the three months ended June 30, 2016 and 2015, respectively, and $4.6 million and $2.7 million for the six months ended June 30, 2016 and 2015, respectively. Rental expense for the three and six months ended June 30, 2015 has been retrospectively adjusted for the acquisitions of the McKee Terminal Services Business and the Corpus Christi Terminal Services Business.

18

VALERO ENERGY PARTNERS LP

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

8. CASH DISTRIBUTIONS

Our partnership agreement prescribes the amount and priority of cash distributions that the common and subordinated unitholders and general partner will receive. Our distributions are declared subsequent to quarter end. The table below summarizes information related to our quarterly cash distributions that have been declared since January 1, 2015:

Quarterly Period Ended	Total Quarterly Distribution (Per Unit)		Total Cash Distribution (In Thousands)		Declaration Date	Record Date	Distribution Date
June 30, 2016	$	0.3650	$	28,912	July 21, 2016	August 1, 2016	August 9, 2016
March 31, 2016	0.3400		25,608		April 21, 2016	May 2, 2016	May 10, 2016
December 31, 2015	0.3200		22,711		January 25, 2016	February 4, 2016	February 11, 2016
September 30, 2015	0.3075		20,164		October 15, 2015	November 2, 2015	November 10, 2015
June 30, 2015	0.2925		18,456		July 24, 2015	August 3, 2015	August 11, 2015
March 31, 2015	0.2775		17,266		April 21, 2015	May 1, 2015	May 12, 2015
December 31, 2014	0.2660		15,829		January 26, 2015	February 5, 2015	February 12, 2015

The following table reflects the allocation of total cash distributions to the general and limited partners and distribution equivalent right (DER) payments applicable to the period in which the distributions and DERs were earned (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
General partner’s distributions:
General partner’s distributions	$	578	$	369	$	1,090	$	714
General partner’s incentive distribution rights (IDRs)	4,224		684		6,862		1,094
Total general partner’s distributions	4,802		1,053		7,952		1,808
Limited partners’ distributions:
Common – public	7,849		5,045		15,159		9,832
Common – Valero	5,747		3,934		11,102		7,666
Subordinated – Valero	10,509		8,421		20,297		16,410
Total limited partners’ distributions	24,105		17,400		46,558		33,908
DERs	5		3		10		6
Total cash distributions, including DERs	$	28,912	$	18,456	$	54,520	$	35,722

19

VALERO ENERGY PARTNERS LP

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

9. NET INCOME PER LIMITED PARTNER UNIT

Distributions 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 net income per limited partner unit.

We calculate net income available to limited partners based on the distributions pertaining to each period’s net income. After considering the appropriate period’s distributions, the remaining undistributed earnings or excess distributions over earnings, if any, are allocated to the general partner, limited partners, and other participating securities in accordance with the contractual terms of our partnership agreement and as prescribed under the two-class method. Participating securities include IDRs and awards under our Valero Energy Partners LP 2013 Incentive Compensation Plan (2013 ICP) that receive DERs. However, the terms of our partnership agreement limit the general partner’s incentive distribution to the amount of available cash, which, as defined in our partnership agreement, is net of reserves deemed appropriate. As such, IDRs are not allocated undistributed earnings or distributions in excess of earnings in the calculation of net income per limited partner unit.

Net losses of our Predecessor are allocated to the general partner. Subsequent to the effective dates of the Acquisitions, we calculate net income available to limited partners based on the methodology described above.

Basic net income per limited partner unit is determined pursuant to the two-class method for master limited partnerships. The two-class method is an earnings allocation formula that is used to determine earnings to our general partner, common unitholders, and participating securities according to (i) distributions pertaining to each period’s net income and (ii) participation rights in undistributed earnings.

Diluted net income per limited partner unit is also determined using the two-class method, unless the treasury stock method is more dilutive. For the three and six months ended June 30, 2016 and 2015, we used the two-class method to determine diluted net income per limited partner unit. We did not have any potentially dilutive instruments outstanding during the three and six months ended June 30, 2016 and 2015.

20

VALERO ENERGY PARTNERS LP

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Net income per unit was computed as follows (in thousands, except per unit amounts):

	Three Months Ended June 30, 2016
			Limited Partners
	General Partner		Common Units		Subordinated Units		Restricted Units		Total
Allocation of net income to determine net income available to limited partners:
Distributions, excluding general partner’s IDRs	$	578	$	13,596	$	10,509	$	—	$	24,683
General partner’s IDRs	4,224		—		—		—		4,224
DERs	—		—		—		5		5
Distributions and DERs declared	4,802		13,596		10,509		5		28,912
Undistributed earnings	411		11,348		8,772		4		20,535
Net income available to limited partners – basic and diluted	$	5,213	$	24,944	$	19,281	$	9	$	49,447
Net income per limited partner unit – basic and diluted:
Weighted-average units outstanding			37,248		28,790
Net income per limited partner unit – basic and diluted			$	0.67	$	0.67

21

VALERO ENERGY PARTNERS LP

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

	Three Months Ended June 30, 2015
			Limited Partners
	General Partner		Common Units		Subordinated Units		Restricted Units		Total
Allocation of net income to determine net income available to limited partners:
Distributions, excluding general partner’s IDRs	$	369	$	8,979	$	8,421	$	—	$	17,769
General partner’s IDRs	684		—		—		—		684
DERs	—		—		—		3		3
Distributions and DERs declared	1,053		8,979		8,421		3		18,456
Undistributed earnings	304		7,688		7,211		3		15,206
Net income available to limited partners – basic and diluted	$	1,357	$	16,667	$	15,632	$	6	$	33,662
Net income per limited partner unit – basic and diluted:
Weighted-average units outstanding			30,698		28,790
Net income per limited partner unit – basic and diluted			$	0.54	$	0.54

22

VALERO ENERGY PARTNERS LP

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

	Six Months Ended June 30, 2016
			Limited Partners
	General Partner		Common Units		Subordinated Units		Restricted Units		Total
Allocation of net income to determine net income available to limited partners:
Distributions, excluding general partner’s IDRs	$	1,090	$	26,261	$	20,297	$	—	$	47,648
General partner’s IDRs	6,862		—		—		—		6,862
DERs	—		—		—		10		10
Distributions and DERs declared	7,952		26,261		20,297		10		54,520
Undistributed earnings	765		21,034		16,418		8		38,225
Net income available to limited partners – basic and diluted	$	8,717	$	47,295	$	36,715	$	18	$	92,745
Net income per limited partner unit – basic and diluted:
Weighted-average units outstanding			36,884		28,790
Net income per limited partner unit – basic and diluted			$	1.28	$	1.28

23

VALERO ENERGY PARTNERS LP

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

	Six Months Ended June 30, 2015
			Limited Partners
	General Partner		Common Units		Subordinated Units		Restricted Units		Total
Allocation of net income to determine net income available to limited partners:
Distributions, excluding general partner’s IDRs	$	714	$	17,498	$	16,410	$	—	$	34,622
General partner’s IDRs	1,094		—		—		—		1,094
DERs	—		—		—		6		6
Distributions and DERs declared	1,808		17,498		16,410		6		35,722
Undistributed earnings	401		10,042		9,615		3		20,061
Net income available to limited partners – basic and diluted	$	2,209	$	27,540	$	26,025	$	9	$	55,783
Net income per limited partner unit – basic and diluted:
Weighted-average units outstanding			30,066		28,790
Net income per limited partner unit – basic and diluted			$	0.91	$	0.90

10. UNIT ACTIVITY

Activity in the number of units was as follows:

	Common			General Partner
	Public	Valero	Subordinated		Total
Balance as of December 31, 2014	17,255,208	11,539,989	28,789,989	1,175,102	58,760,288
Unit-based compensation	4,443	—	—	—	4,443
Units issued in connection with the acquisition of the Houston and St. Charles Terminal Services Business (see Note 3)	—	1,908,100	—	38,941	1,947,041
Balance as of June 30, 2015	17,259,651	13,448,089	28,789,989	1,214,043	60,711,772
Balance as of December 31, 2015	21,509,651	15,018,602	28,789,989	1,332,829	66,651,071
Unit-based compensation	5,958	—	—	—	5,958
Units issued in connection with the acquisition of the McKee Terminal Services Business (see Note 3)	—	728,775	—	14,873	743,648
Balance as of June 30, 2016	21,515,609	15,747,377	28,789,989	1,347,702	67,400,677

24

VALERO ENERGY PARTNERS LP

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

11. SUPPLEMENTAL CASH FLOW INFORMATION

In order to determine net cash provided by operating activities, net income is adjusted by, among other things, changes in current assets and current liabilities as follows (in thousands):

	Six Months Ended June 30,
	2016			2015
Decrease (increase) in current assets:
Receivables from related party	$	(5,526	)	$	(6,817	)
Prepaid expenses and other	(449		)	20
Increase in current liabilities:
Accounts payable	733			31
Accrued liabilities	214			183
Accrued liabilities – related party	49			183
Taxes other than income taxes	403			139
Deferred revenue from related party	1,134			188
Changes in current assets and current liabilities	$	(3,442	)	$	(6,073	)

The above changes in current assets and current liabilities differ from changes between amounts reflected in the applicable balance sheets for the respective periods for the following reasons:

• amounts accrued for capital expenditures are reflected in investing activities when such amounts are paid; and

• amounts accrued for offering costs and debt issuance costs are reflected in financing activities when paid.

We attributed $51.4 million of the total $204.0 million cash consideration paid for the acquisition of the McKee Terminal Services Business to the historical carrying value of this acquisition (an investing cash outflow). The remaining $152.6 million of the cash consideration represents the excess purchase price paid over the carrying value of this acquisition (a financing cash outflow).

We attributed $296.1 million of the total $571.2 million cash consideration paid for the acquisition of the Houston and St. Charles Terminal Services Business to the historical carrying value of this acquisition (an investing cash outflow). The remaining $275.1 million of cash consideration represents the excess purchase price paid over the carrying value of this acquisition (a financing cash outflow).

Noncash investing and financing activities for the six months ended June 30, 2016 included:

• a capital contribution of $16.0 million for projects that were funded by Valero related primarily to the Houston, St. Charles, and Corpus Christi terminals. Valero agreed to fund these projects in connection with the Acquisitions; and

25

VALERO ENERGY PARTNERS LP

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

• the issuance of 728,775 common units and 14,873 general partner units having an aggregate value of $36.0 million in connection with the acquisition of the McKee Terminal Services Business described in Note 3.

Noncash investing and financing activities for the six months ended June 30, 2015 included:

• a capital contribution of $7.3 million for projects that were funded by Valero related to the Houston and St. Charles terminals. Valero agreed to fund these projects as part of the acquisition of the Houston and St. Charles Terminal Services Business; and

• the issuance of 1,908,100 common units and 38,941 general partner units having an aggregate value of $100.0 million in connection with the acquisition of the Houston and St. Charles Terminal Services Business described in Note 3.

The following is a reconciliation of the amounts presented as net transfers from Valero on our statement of partners’ capital and statement of cash flows (in thousands):

	Six Months Ended June 30,
	2016		2015 (a)
Net transfers from Valero per statements of partners’ capital	$	1,883	$	35,122
Less: Noncash transfers from (to) Valero	35		(2,600		)
Net transfers from Valero per statements of cash flows	$	1,848	$	37,722
(a) Financial information has been retrospectively adjusted for the acquisitions of the McKee Terminal Services Business and the Corpus Christi Terminal Services Business.

Noncash transfers from (to) Valero primarily represent the change in amounts accrued by our Predecessor for capital expenditures as we do not reflect capital expenditures in our statements of cash flows until such amounts are paid.

Cash flows related to interest and income taxes paid were as follows (in thousands):

	Six Months Ended June 30,
	2016		2015
Interest paid	$	5,484	$	1,578
Income taxes paid	496		441

26

VALERO ENERGY PARTNERS LP

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

12. FAIR VALUE OF FINANCIAL INSTRUMENTS

The fair value of cash and cash equivalents approximates the carrying value due to the low level of credit risk of these assets combined with their market interest rates. The fair value measurement for cash and cash equivalents is categorized as Level 1 in the fair value hierarchy. Fair values determined by Level 1 inputs utilize unadjusted quoted prices in active markets for identical assets.

The fair values of our debt and notes payable to related party approximate their carrying values as our borrowings bear interest based upon short-term floating market interest rates. The fair value measurement for these liabilities is categorized as Level 2 in the fair value hierarchy. Fair values determined by Level 2 utilize inputs that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

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

References in this report to “Partnership,” “we,” “us,” or “our” refer to Valero Energy Partners LP, one or more of its subsidiaries, or all of them taken as a whole. References in this report to “Valero” refer collectively to Valero Energy Corporation and its subsidiaries, other than Valero Energy Partners LP, any of its subsidiaries, or its general partner.

CAUTIONARY STATEMENT FOR THE PURPOSE OF SAFE HARBOR PROVISIONS OF THE

PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This Form 10-Q, including without limitation our disclosures below under the heading “OUTLOOK,” includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You can identify our forward-looking statements by the words “anticipate,” “believe,” “expect,” “plan,” “intend,” “estimate,” “project,” “projection,” “predict,” “budget,” “forecast,” “goal,” “guidance,” “target,” “could,” “should,” “may,” and similar expressions.

Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. The matters discussed in these forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results and trends to differ materially from those made, projected, or implied in or by the forward-looking statements depending on a variety of uncertainties or other factors including, but not limited to:

• the suspension, reduction, or termination of Valero’s obligation under our commercial agreements and our services and secondment agreement;

• changes in global economic conditions and the effects of the global economic downturn on Valero’s business and the business of its suppliers, customers, business partners, and credit lenders;

• a material decrease in Valero’s profitability;

• disruptions due to equipment interruption or failure at our facilities, Valero’s facilities, or third-party facilities on which our business or Valero’s business is dependent;

• the risk of contract cancellation, non-renewal, or failure to perform by Valero’s customers, and Valero’s inability to replace such contracts and/or customers;

• Valero’s ability to remain in compliance with the terms of its outstanding indebtedness;

• the timing and extent of changes in commodity prices and demand for Valero’s refined petroleum products;

• our ability to obtain credit and financing on acceptable terms in light of uncertainty and illiquidity in credit and capital markets;

• actions of customers and competitors;

• changes in our cash flows from operations;

• state and federal environmental, economic, health and safety, energy, and other policies and regulations, including those related to climate change and any changes therein, and any legal or regulatory investigations, delays, or other factors beyond our control;

• operational hazards inherent in refining operations and in transporting and storing crude oil and refined petroleum products;

• earthquakes or other natural disasters affecting operations;

• changes in capital requirements or in execution of planned capital projects;

• the availability and costs of crude oil, other refinery feedstocks, and refined petroleum products;

28

• changes in the cost or availability of third-party vessels, pipelines, and other means of delivering and transporting crude oil, feedstocks, and refined products;

• direct or indirect effects on our business resulting from actual or threatened terrorist incidents or acts of war;

• weather conditions affecting our or Valero’s operations or the areas in which Valero markets its refined petroleum products;

• seasonal variations in demand for refined petroleum products;

• adverse rulings, judgments, or settlements in litigation or other legal or tax matters, including unexpected environmental remediation costs in excess of any accruals, which affect us or Valero;

• risks related to labor relations and workplace safety;

• changes in insurance markets impacting costs and the level and types of coverage available; and

• political developments.

Any one of these factors, or a combination of these factors, could materially affect our future results of operations and affect whether any forward-looking statements ultimately prove to be accurate. Our forward-looking statements are not guarantees of future performance, and actual results and future performance may differ materially from those suggested in any forward-looking statements. We do not intend to update these statements unless we are required by the securities laws to do so.

All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing. We undertake no obligation to publicly release any revisions to any such forward-looking statements that may be made to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated events.

OVERVIEW

We are a fee-based master limited partnership that owns and operates crude oil and refined petroleum products pipeline and terminal systems in the U.S. Gulf Coast and U.S. Mid-Continent regions that are integral to the operations of nine of Valero’s refineries. Since our formation in 2013, we have acquired several businesses from Valero and began receiving fees for services provided by those businesses commencing on each respective acquisition date. The following businesses (collectively, the Acquisitions) were acquired from Valero in 2016 and 2015 and are further described in Note 3 of Condensed Notes to Consolidated Financial Statements:

• On April 1, 2016, we acquired the McKee Terminal Services Business for total consideration of $240.0 million.

• On October 1, 2015, we acquired the Corpus Christi Terminal Services Business for total consideration of $465.0 million.

• On March 1, 2015, we acquired the Houston and St. Charles Terminal Services Business for total consideration of $671.2 million.

The Acquisitions were accounted for as transfers of businesses between entities under the common control of Valero. Accordingly, the Partnership’s financial statements have been retrospectively adjusted to include the historical results of the acquired businesses for all periods presented prior to the effective date of each acquisition. We refer to the historical results of the acquired businesses prior to their respective acquisition dates as those of our “Predecessor.” See Notes 1 and 3 of Condensed Notes to Consolidated Financial Statements for a discussion of the basis of this presentation.

29

In connection with the Acquisitions, we entered into commercial agreements with Valero and began recognizing terminaling revenues. We had not charged fees for services provided to Valero prior to each acquisition; therefore, our results of operations subsequent to the Acquisitions are not comparable to our historical results of operations.

For the second quarter of 2016, we reported net income and net income attributable to partners of $49.4 million and net income per common unit of $0.67. This compares to net income of $23.5 million, net income attributable to partners of $33.7 million, and net income per common unit of $0.54 for the second quarter of 2015.

• The increase in net income of $25.9 million in the second quarter of 2016 compared to the second quarter of 2015 was due primarily to $28.2 million of revenues generated by our McKee and Corpus Christi terminals in the second quarter of 2016. As previously noted, the McKee Terminal Services Business and the Corpus Christi Terminal Services Business did not charge Valero for services provided, and therefore, did not generate revenues prior to our acquisition of those businesses on April 1, 2016 and October 1, 2015, respectively.

• Net income attributable to partners represents our results of operations and only includes the results of an acquired business for the period subsequent to the effective date of its acquisition. Therefore, the increase in net income attributable to partners of $15.8 million in the second quarter of 2016 compared to the second quarter of 2015 was due primarily to the comparable periods reflecting the results of operations of the McKee Terminal Services Business and the Corpus Christi Terminal Services Business from the date of their respective acquisition.

For the first six months of 2016, we reported net income of $89.7 million, net income attributable to partners of $92.7 million, and net income per common unit of $1.28. This compares to net income of $27.6 million, net income attributable to partners of $55.8 million, and net income per common unit of $0.91 for the first six months of 2015.

• The increase in net income of $62.1 million in the first six months of 2016 compared to the first six months of 2015 was due primarily to higher revenues of $65.1 million generated by our McKee, Corpus Christi, Houston, and St. Charles terminals. As previously noted, the McKee Terminal Services Business, the Corpus Christi Terminal Services Business, and the Houston and St. Charles Terminal Services Business did not charge Valero for services provided, and therefore, did not generate revenues prior to our acquisition of those businesses on April 1, 2016, October 1, 2015, and March 1, 2015, respectively.

• Net income attributable to partners represents our results of operations and only includes the results of an acquired business for the period subsequent to the effective date of its acquisition. Therefore, the increase in net income attributable to partners of $37.0 million in the first six months of 2016 compared to the first six months of 2015 was due primarily to the comparable periods reflecting the results of operations of the Houston and St. Charles Terminal Services Business, the Corpus Christi Terminal Services Business, and the McKee Terminal Services Business from the date of their respective acquisition.

Additional analysis of the changes in the components of net income is provided below under “RESULTS OF OPERATIONS.”

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OUTLOOK

Because our operating revenues are generated from fee-based arrangements with Valero, the amount of operating revenues we generate primarily depends on the volumes of crude oil and refined petroleum products that we transport through our pipelines and handle at our terminals. These volumes are primarily affected by refinery reliability and the supply of, and demand for, crude oil and refined petroleum products in the markets served by our assets. For 2016, we expect that Valero will transport volumes through our pipelines and throughput volumes at our terminals generally consistent with historical levels.

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RESULTS OF OPERATIONS

The following tables highlight our results of operations and our operating performance. The financial results for the three and six months ended June 30, 2016 and 2015 represent our consolidated results of operations, adjusted for the Acquisitions for the periods presented prior to the effective date of each acquisition. See Notes 1 and 3 of Condensed Notes to Consolidated Financial Statements for a discussion of the basis of this presentation. The narrative following these tables provides an analysis of our results of operations.

Results of Operations

(in thousands, except per unit amounts)

	Three Months Ended June 30,
	2016			2015			Change
Operating revenues – related party	$	87,664		$	60,245		$	27,419
Costs and expenses:
Operating expenses	20,520			22,191			(1,671		)
General and administrative expenses	3,578			3,312			266
Depreciation expense	10,622			9,904			718
Total costs and expenses	34,720			35,407			(687		)
Operating income	52,944			24,838			28,106
Other income, net	57			26			31
Interest and debt expense, net of capitalized interest	(3,251		)	(1,411		)	(1,840		)
Income before income taxes	49,750			23,453			26,297
Income tax expense (benefit)	303			(51		)	354
Net income	49,447			23,504			25,943
Less: Net loss attributable to Predecessor	—			(10,158		)	10,158
Net income attributable to partners	49,447			33,662			15,785
Less: General partner’s interest in net income	5,213			1,357			3,856
Limited partners’ interest in net income	$	44,234		$	32,305		$	11,929
Net income per limited partner unit – basic and diluted:
Common units	$	0.67		$	0.54
Subordinated units	$	0.67		$	0.54
Weighted-average limited partner units outstanding – basic and diluted:
Common units	37,248			30,698
Subordinated units	28,790			28,790

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Operating Highlights and Other Financial Information

(in thousands, except throughput, per barrel, and per unit amounts)

	Three Months Ended June 30,
	2016		2015		Change
Operating highlights:
Pipeline transportation:
Pipeline transportation revenues	$	19,318	$	19,967	$	(649	)
Pipeline transportation throughput (BPD) (a)	850,516		953,123		(102,607		)
Average pipeline transportation revenue per barrel (b)	$	0.25	$	0.23	$	0.02
Terminaling:
Terminaling revenues	$	68,211	$	40,143	$	28,068
Terminaling throughput (BPD)	2,146,293		1,379,757		766,536
Average terminaling revenue per barrel (b)	$	0.35	$	0.32	$	0.03
Storage revenues	$	135	$	135	$	—
Total operating revenues – related party	$	87,664	$	60,245	$	27,419
Capital expenditures:
Maintenance	$	1,518	$	2,129	$	(611	)
Expansion	1,540		4,174		(2,634		)
Total capital expenditures	3,058		6,303		(3,245		)
Less: Capital expenditures attributable to Predecessor	—		5,229		(5,229		)
Capital expenditures attributable to Partnership	$	3,058	$	1,074	$	1,984
Other financial information:
Distribution declared per unit	$	0.3650	$	0.2925
Distribution declared:
Limited partner units – public	$	7,854	$	5,048
Limited partner units – Valero	16,256		12,355
General partner units – Valero	4,802		1,053
Total distribution declared	$	28,912	$	18,456

____________________

(a) Represents the sum of volumes transported through each separately tariffed pipeline segment.

(b) Average revenue per barrel is calculated as revenue divided by throughput for the period. Throughput is derived by multiplying the throughput barrels per day (BPD) by the number of days in the period.

33

Operating revenues increased$27.4 million, or 46 percent, in the second quarter of 2016 compared to the second quarter of 2015. The increase was due to higher revenues of $28.2 million generated by the McKee and Corpus Christi terminals in the second quarter of 2016 compared to the second quarter of 2015. Prior to being acquired by us, the McKee Terminal Services Business and the Corpus Christi Terminal Services Business did not charge Valero for services provided and, therefore, did not generate revenues. Effective with the acquisition dates, we entered into additional schedules to our commercial agreements with Valero with respect to the services we provide to Valero using the assets of the acquired businesses and began generating revenues with respect to these assets.

Operating expenses decreased$1.7 million, or 8 percent, in the second quarter of 2016 compared to the second quarter of 2015 due primarily to lower maintenance expense of $1.6 million at the Corpus Christi terminals related to inspection activity.

General and administrative expenses increased$266,000, or 8 percent, in the second quarter of 2016 compared to the second quarter of 2015 due primarily to incremental costs of $198,000 related to the management fee charged to us by Valero for the McKee Terminal Services Business and the Corpus Christi Terminal Services Business.

Depreciation expense increased$718,000, or 7 percent, in the second quarter of 2016 compared to the second quarter of 2015 due primarily to additional depreciation expense associated with assets placed into service in 2015, including expansion and improvement projects at our Corpus Christi and St. Charles terminals.

“Interest and debt expense, net of capitalized interest” increased$1.8 million in the second quarter of 2016 compared to the second quarter of 2015 due primarily to interest expense incurred on borrowings under our revolving credit facility and the subordinated credit agreements with Valero entered into in connection with the acquisitions of the McKee Terminal Services Business and the Corpus Christi Terminal Services Business. Interest expense on these incremental borrowings was approximately $1.5 million in the second quarter of 2016.

Our income tax expense (benefit) is associated with the Texas margin tax. In June 2015, the Texas margin tax rate was reduced from 1 percent to 0.75 percent, which resulted in a tax benefit in the second quarter of 2015.

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Results of Operations

(in thousands, except per unit amounts)

	Six Months Ended June 30,
	2016			2015			Change
Operating revenues – related party	$	166,431		$	102,131		$	64,300
Costs and expenses:
Operating expenses	41,397			46,487			(5,090		)
General and administrative expenses	7,806			7,024			782
Depreciation expense	21,243			19,343			1,900
Total costs and expenses	70,446			72,854			(2,408		)
Operating income	95,985			29,277			66,708
Other income, net	134			137			(3		)
Interest and debt expense, net of capitalized interest	(5,910		)	(2,012		)	(3,898		)
Income before income taxes	90,209			27,402			62,807
Income tax expense (benefit)	545			(177		)	722
Net income	89,664			27,579			62,085
Less: Net loss attributable to Predecessor	(3,081		)	(28,204		)	25,123
Net income attributable to partners	92,745			55,783			36,962
Less: General partner’s interest in net income	8,717			2,209			6,508
Limited partners’ interest in net income	$	84,028		$	53,574		$	30,454
Net income per limited partner unit –basic and diluted:
Common units	$	1.28		$	0.91
Subordinated units	$	1.28		$	0.90
Weighted-average limited partner units outstanding –basic and diluted:
Common units	36,884			30,066
Subordinated units	28,790			28,790

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Operating Highlights and Other Financial Information

(in thousands, except throughput, per barrel, and per unit amounts)

	Six Months Ended June 30,
	2016		2015		Change
Operating highlights:
Pipeline transportation:
Pipeline transportation revenues	$	39,563	$	39,842	$	(279	)
Pipeline transportation throughput (BPD) (a)	884,725		966,399		(81,674		)
Average pipeline transportation revenue per barrel (b)	$	0.25	$	0.23	$	0.02
Terminaling:
Terminaling revenues	$	126,598	$	62,019	$	64,579
Terminaling throughput (BPD)	1,998,077		1,095,173		902,904
Average terminaling revenue per barrel (b)	$	0.35	$	0.31	$	0.04
Storage revenues	$	270	$	270	$	—
Total operating revenues – related party	$	166,431	$	102,131	$	64,300
Capital expenditures:
Maintenance	$	3,520	$	6,649	$	(3,129	)
Expansion	5,805		11,642		(5,837		)
Total capital expenditures	9,325		18,291		(8,966		)
Less: Capital expenditures attributable to Predecessor	—		15,932		(15,932		)
Capital expenditures attributable to Partnership	$	9,325	$	2,359	$	6,966
Other financial information:
Distribution declared per unit	$	0.7050	$	0.5700
Distribution declared:
Limited partner units – public	$	15,169	$	9,838
Limited partner units – Valero	31,399		24,076
General partner units – Valero	7,952		1,808
Total distribution declared	$	54,520	$	35,722

____________________

(a) Represents the sum of volumes transported through each separately tariffed pipeline segment.

(b) Average revenue per barrel is calculated as revenue divided by throughput for the period. Throughput is derived by multiplying the throughput barrels per day (BPD) by the number of days in the period.

36

Operating revenues increased$64.3 million, or 63 percent, for the first six months of 2016 compared to the first six months of 2015. The increase was due primarily to higher revenues of $65.1 million generated by the McKee, Corpus Christi, Houston, and St.Charles terminals. Prior to being acquired by us, the McKee Terminal Services Business, the Corpus Christi Terminal Services Business, and the Houston and St. Charles Terminal Services Business did not charge Valero for services provided and, therefore, did not generate revenues. Effective with the acquisition dates, we entered into additional schedules to our commercial agreements with Valero with respect to the services we provide to Valero using the assets of the acquired businesses and began generating revenues with respect to these assets.

Operating expenses decreased$5.1 million, or 11 percent, for the first six months of 2016 compared to the first six months of 2015 due primarily to a decrease in maintenance expense of $3.9 million at our Corpus Christi and St. Charles terminals related to inspection activity. Additionally, waste handling costs at the Corpus Christi and St. Charles terminals decreased $2.0 million in the first six months of 2016. The decrease in these expenses was partially offset by an increase in insurance expense of $867,000 as a result of the acquired assets being covered under our own insurance policies. Prior to the acquisitions, our Predecessor was allocated a portion of Valero’s insurance costs.

General and administrative expenses increased$782,000, or 11 percent, for the first six months of 2016 compared to the first six months of 2015 due primarily to incremental costs of $464,000 related to the management fee charged to us by Valero and an increase of $476,000 in costs related to being a separate publicly traded limited partnership. These increases were offset by lower transaction costs (legal and investment advisor fees) of $159,000 associated with the acquisition of businesses from Valero. In 2016, we incurred transaction costs of $387,000 in connection with the April 1, 2016 acquisition of the McKee Terminal Services Business. In 2015, we incurred $546,000 in connection with the March 1, 2015 acquisition of the Houston and St. Charles Terminal Services Business.

Depreciation expense increased$1.9 million, or 10 percent, for the first six months of 2016 compared to the first six months of 2015 due to additional depreciation expense associated with assets placed into service in 2015, including expansion and improvement projects at our Corpus Christi and St. Charles terminals.

“Interest and debt expense, net of capitalized interest” increased$3.9 million for the first six months of 2016 compared to the first six months of 2015 due primarily to interest expense incurred on borrowings under our revolving credit facility and the subordinated credit agreement with Valero entered into in connection with the Acquisitions. Interest expense on this indebtedness was $5.3 million in the first six months of 2016 compared to $1.7 million in the first six months of 2015.

Our income tax expense (benefit) is associated with the Texas margin tax. During the first six months of 2015, we reduced our deferred income tax liabilities due to a reduction in the relative amount of revenue we generate in Texas compared to our total revenue. This reduction was a result of the acquisition of the Houston and St. Charles Terminal Services Business (which includes operations in Louisiana). In addition, in June 2015, the Texas margin tax rate was reduced from 1 percent to 0.75 percent.

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LIQUIDITY AND CAPITAL RESOURCES

Sources of Liquidity

We expect our ongoing sources of liquidity to include cash generated from operations, borrowings under our revolving credit facility, and issuances of additional debt and equity securities. We may also enter into financing transactions with Valero in connection with acquisitions. 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 and to make quarterly cash distributions.

Distributions

On July 21, 2016, the board of directors of our general partner declared a distribution of $0.3650 per unit applicable to the second quarter of 2016, which equates to $28.9 million in total distributions to unitholders of record as of August 1, 2016. This quarterly distribution per unit is more than the minimum quarterly distribution of $0.2125 per unit.

Our distributions are declared subsequent to quarter end. The table below summarizes information related to our quarterly cash distributions that have been declared since January 1, 2015:

Quarterly Period Ended	Total Quarterly Distribution (Per Unit)		Total Cash Distribution (In Thousands)		Declaration Date	Record Date	Distribution Date
June 30, 2016	$	0.3650	$	28,912	July 21, 2016	August 1, 2016	August 9, 2016
March 31, 2016	0.3400		25,608		April 21, 2016	May 2, 2016	May 10, 2016
December 31, 2015	0.3200		22,711		January 25, 2016	February 4, 2016	February 11, 2016
September 30, 2015	0.3075		20,164		October 15, 2015	November 2, 2015	November 10, 2015
June 30, 2015	0.2925		18,456		July 24, 2015	August 3, 2015	August 11, 2015
March 31, 2015	0.2775		17,266		April 21, 2015	May 1, 2015	May 12, 2015
December 31, 2014	0.2660		15,829		January 26, 2015	February 5, 2015	February 12, 2015

Revolving Credit Facility

We have a $750.0 million senior unsecured revolving credit facility agreement (the Revolver) with a group of lenders that matures in November 2020. The Revolver includes a letter of credit sub-facility. Effective April 1, 2016, we borrowed $139.0 million under the Revolver in connection with the acquisition of the McKee Terminal Services Business. As of June 30, 2016, we had $314.0 million of borrowings outstanding under the Revolver. See Note 6 of Condensed Notes to Consolidated Financial Statements for a description of the Revolver.

Subordinated Credit Agreements

During 2015, we entered into two subordinated credit agreements with Valero (the Loan Agreements) under which we borrowed $395.0 million and $160.0 million to finance a portion of the acquisitions of the Corpus Christi Terminal Services Business and the Houston and St. Charles Terminal Services Business, respectively.

As of June 30, 2016, we had $370.0 million outstanding under the Loan Agreements. See Note 6 of Condensed Notes to Consolidated Financial Statements for a description of the Loan Agreements.

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Cash Flows Summary

Components of our cash flows are set forth below (in thousands):

	Six Months Ended June 30,
	2016			2015 (a)
Cash flows provided by (used in):
Operating activities	$	107,933		$	40,913
Investing activities	(60,668		)	(314,386		)
Financing activities	(60,881		)	88,936
Net increase (decrease) in cash and cash equivalents	$	(13,616	)	$	(184,537	)
(a) Financial information has been retrospectively adjusted for the acquisition of the McKee Terminal Services Business and the Corpus Christi Terminal Services Business.

Operating Activities

Net cash provided by operating activities in the first six months of 2016 was $107.9 million, which included net income of $89.7 million plus noncash adjustments (primarily for depreciation expense) of $21.7 million, partially offset by unfavorable changes in working capital of $3.4 million. See “RESULTS OF OPERATIONS” for further discussion of our operating results. The change in working capital was composed primarily of anincrease in receivables from related party (net of offsetting payables to related party) of $5.5 million, as shown in Note 11 of Condensed Notes to Consolidated Financial Statements.The increase in receivables from related party was attributed primarily to billings related to our newly acquired McKee terminal and a decrease in the offsetting payables resulting from the timing of invoices from Valero for services provided to our general partner under our amended and restated services and secondment agreement.

Net cash provided by operating activities in the first six months of 2015 was $40.9 million, which included net income of $27.6 million plus noncash adjustments (primarily for depreciation expense) of $19.4 million, partially offset by unfavorable changes in working capital of $6.1 million. See “RESULTS OF OPERATIONS” for further discussion of our operating results. The change in working capital was composed primarily of an increase in receivables from related party of $6.8 million, as shown in Note 11 of Condensed Notes to Consolidated Financial Statements. The increase in receivables from related party was attributed primarily to an increase in billings related to the Houston and St. Charles Terminal Services Business, which had been recently acquired from Valero.

Investing Activities

Cash used for investing activities in the first six months of 2016 was $60.7 million, which was primarily impacted by the acquisition of the McKee Terminal Services Business on April 1, 2016. In connection with the acquisition, we paid $204.0 million in cash to Valero, and of this amount, $51.4 million represented Valero’s carrying value in the net assets transferred to us, which was reflected as an investing activity. The remaining cash paid of $152.6 million represented the excess purchase price paid over the carrying value and was reflected as a financing activity as described below.

Cash used for investing activities in the first six months of 2015 was $314.4 million, which was primarily impacted by the acquisition of the Houston and St. Charles Terminal Services Business on March 1, 2015. In connection with the acquisition, we paid $571.2 million in cash to Valero, and of this amount, $296.1 million represented Valero’s carrying value in the net assets transferred to us, which was reflected

39

as an investing activity. The remaining cash paid of $275.1 million represented the excess purchase price paid over the carrying value and was reflected as a financing activity as described below.

In addition, we and our Predecessor incurred capital expenditures of $9.3 million and $18.3 million for the first six months of 2016 and 2015, respectively. See “Capital Expenditures” below for a discussion of the various maintenance and expansion projects.

Financing Activities

Cash used for financing activities in the first six months of 2016 was $60.9 million, which consisted primarily of the $152.6 million of excess purchase price paid over the carrying value for the acquisition of the McKee Terminal Services Business as described above under “Investing Activities”, offset by the $139.0 million of borrowings under the Revolver in connection with this acquisition. In addition, we paid $48.3 million in cash distributions to limited partners and our general partner.

In the first six months of 2015, our financing activities provided cash of $88.9 million, which consisted primarily of the $200.0 million of borrowings under the Revolver and $160.0 million of proceeds from the loan agreement entered into in connection with the acquisition of the Houston and St. Charles Terminal Services Business. These cash inflows were offset by the $275.1 million of excess purchase price paid over the carrying value for the acquisition of the Houston and St. Charles Terminal Services Business as described above under “Investing Activities,” and we reflected a net transfer from Valero of $37.7 million related to the cash flows associated with our Predecessor. In addition, we paid $33.1 million of cash distributions to limited partners and our general partner.

See Notes 3 and 11 of Condensed Notes to Consolidated Financial Statements for additional information on the acquisitions discussed above, including consideration paid and the cash and noncash elements of the acquisitions.

Capital Expenditures

Our operations can be capital intensive, requiring investments to expand, upgrade, or enhance existing operations and to meet environmental and operational regulations. Our capital requirements consist of maintenance capital expenditures and expansion capital expenditures as those terms are defined in our partnership agreement. Examples of maintenance capital expenditures are those made to replace partially or fully depreciated assets, to maintain the existing operating capacity of our assets and to extend their useful lives, or other capital expenditures that are incurred in maintaining existing system volumes and related cash flows. In contrast, examples of expansion capital expenditures include those made to expand and upgrade our systems and facilities and to construct or acquire new systems or facilities to grow our business.

40

Our capital expenditures were as follows (in thousands):

	Six Months Ended June 30,
	2016		2015 (a)
Maintenance	$	3,520	$	6,649
Expansion (b)	5,805		11,642
Total capital expenditures	$	9,325	$	18,291
(a) Financial information has been retrospectively adjusted for the acquisition of the McKee Terminal Services Business and the Corpus Christi Terminal Services Business.
(b) This table excludes amounts paid to Valero for the acquired businesses. See Note 3 of Condensed Notes to Consolidated Financial Statements for further discussion of our acquisitions.

Our capital expenditures in the first six months of 2016 were primarily for:

• the construction of a connection to receive crude oil from the Seaway pipeline into our Lucas crude system;

• the improvement of assets at our St. Charles and Houston terminals to extend the useful lives of the tanks; and

• the improvement of assets at our Lucas crude system for enhanced monitoring of pipeline shipments.

Our capital expenditures in the first six months of 2015 were primarily for:

• the expansion and improvement of assets at the Corpus Christi, St. Charles, and Houston terminals; and

• the enhancement of pipeline and terminal monitoring systems at our Memphis products system.

For the full year 2016, we expect our capital expenditures to be approximately $19.0 million. Our estimate consists of approximately $11.0 million for maintenance capital expenditures and approximately $8.0 million for expansion capital expenditures. We continuously evaluate our capital budget and make changes as conditions warrant. We anticipate that these capital expenditures will be funded from cash flows from operations. The foregoing capital expenditure estimate does not include any amounts related to strategic business acquisitions.

In addition to the above-mentioned capital expenditures, Valero funded $16.0 million of capital projects primarily related to the Houston, St. Charles, and Corpus Christi terminals. Valero agreed to fund these projects in connection with the Acquisitions. See Note 11 of Condensed Notes to Consolidated Financial Statements for further description of these noncash activities.

Contractual Obligations

As of June 30, 2016, our contractual obligations included debt and capital lease obligations, operating leases, purchase obligations, and other long-term liabilities. In April 2016, we borrowed $139.0 million under the Revolver in connection with the acquisition of the McKee Terminal Services Business. In addition, we entered into a lease and access agreement with Valero with respect to the land on which the McKee terminal is located. See Notes 4 and 6 of Condensed Notes to Consolidated Financial Statements for a full description

41

of the lease and access agreement and the Revolver. There were no material changes outside the ordinary course of business with respect to our contractual obligations during the six months endedJune 30, 2016.

Regulatory Matters

Rate and Other Regulations

Our interstate common carrier crude oil and refined petroleum products pipeline operations are subject to rate regulation by the Federal Energy Regulatory Commission under the Interstate Commerce Act and Energy Policy Act. Our pipelines and terminal operations are also subject to safety regulations adopted by the Department of Transportation, as well as to state regulations. For more information on federal and state regulations affecting our business, please read our annual report on Form 10-K for the year ended December 31, 2015.

Environmental Matters and Compliance Costs

We are subject to extensive federal, state, and local environmental laws and regulations. These laws, which change frequently, regulate the discharge of materials into the environment or otherwise relate to protection of the environment. Compliance with these laws and regulations may require us to remediate environmental damage from any discharge of petroleum or chemical substances from our facilities or require us to install additional pollution control equipment on our equipment and facilities. Our failure to comply with these or any other environmental or safety-related regulations could result in the assessment of administrative, civil, or criminal penalties, the imposition of investigatory and remedial liabilities, and the issuance of injunctions that may subject us to additional operational constraints.

There were no significant changes to our environmental matters and compliance costs during the six months endedJune 30, 2016.

CRITICAL ACCOUNTING ESTIMATES

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. As of June 30, 2016, there were no significant changes to our critical accounting estimates since the date our annual report on Form 10-K for the year ended December 31, 2015 was filed.

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. Because we do not take ownership of or receive any payments based on the value of the crude oil or refined petroleum products that we handle and do not engage in the trading of any commodities, we have no direct exposure to commodity price fluctuations.

Our commercial agreements with Valero are indexed to inflation to mitigate our exposure to increases in the cost of labor and materials used in our business.

Debt incurred under our Revolver and our Loan Agreement bears interest at a variable rate and exposes us to interest rate risk. Unless interest rates increase significantly in the future, our exposure to interest rate risk should be minimal. We had debt of $314.0 million and notes payable to related party totaling $370 million as of June 30, 2016.

42

Item 4. Controls and Procedures

(a) Evaluation of disclosure controls and procedures

Our management has evaluated, with the participation of our principal executive officer and principal financial officer, the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15 (e) under the Securities Exchange Act of 1934) as of the end of the period covered by this report, and has concluded that our disclosure controls and procedures were effective as of June 30, 2016.

(b) Changes in internal control over financial reporting

There has been no change in our internal control over financial reporting that occurred during our last fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

43

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

None.

Item 1A. Risk Factors

There have been no material changes from the risk factors disclosed in our annual report on Form 10-K for the year ended December 31, 2015.

Item 6. Exhibits

Exhibit No.	Description
*31.01	Rule 13a-14(a) Certification (under Section 302 of the Sarbanes-Oxley Act of 2002) of principal executive officer.
*31.02	Rule 13a-14(a) Certification (under Section 302 of the Sarbanes-Oxley Act of 2002) of principal financial officer.
**32.01	Section 1350 Certifications (as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002).
***101	Interactive Data Files

______________

* Filed herewith.

** Furnished herewith.

*** Submitted electronically herewith.

44

SIGNATURE

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.

VALERO ENERGY PARTNERS LP
(Registrant)
By:	Valero Energy Partners GP LLC
	its general partner
By:	/s/ Donna M. Titzman
	Donna M. Titzman
	Senior Vice President,
	Chief Financial Officer and Treasurer
	(Duly Authorized Officer and Principal
	Financial and Accounting Officer)

Date: August 4, 2016

45

EX-31.01

Exhibit 31.01

CERTIFICATION PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Joseph W. Gorder, certify that:

1.    I have reviewed this quarterly report on Form 10-Q of Valero Energy Partners LP;

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 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 officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) 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 (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 4, 2016

/s/ Joseph W. Gorder

Joseph W. Gorder

Chief Executive Officer, Valero Energy Partners GP LLC

(the general partner of Valero Energy Partners LP)

EX-31.02

Exhibit 31.02

CERTIFICATION PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Donna M. Titzman, certify that:

1.    I have reviewed this quarterly report on Form 10-Q of Valero Energy Partners LP;

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 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 officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) 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 (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 4, 2016

/s/ Donna M. Titzman

Donna M. Titzman

Senior Vice President, Chief Financial Officer and Treasurer, Valero Energy Partners GP LLC

(the general partner of Valero Energy Partners LP)

EX-32.01

Exhibit 32.01

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Valero Energy Partners LP (the Company) on Form 10-Q for the quarter ended June 30, 2016, as filed with the Securities and Exchange Commission on the date hereof (the Report), the undersigned hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

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

/s/ Joseph W. Gorder

Joseph W. Gorder

Chief Executive Officer

Valero Energy Partners GP LLC

(the general partner of Valero Energy Partners LP)

August 4, 2016

A signed original of the written statement required by Section 906 has been provided to Valero Energy Partners LP and will be retained by Valero Energy Partners LP and furnished to the Securities and Exchange Commission or its staff upon request.

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Valero Energy Partners LP (the Company) on Form 10-Q for the quarter ended June 30, 2016, as filed with the Securities and Exchange Commission on the date hereof (the Report), the undersigned hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

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

/s/ Donna M. Titzman

Donna M. Titzman

Senior Vice President, Chief Financial Officer and Treasurer

Valero Energy Partners GP LLC

(the general partner of Valero Energy Partners LP)

August 4, 2016

A signed original of the written statement required by Section 906 has been provided to Valero Energy Partners LP and will be retained by Valero Energy Partners LP and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 29, 2016
Entity Information
Entity Registrant Name	VALERO ENERGY PARTNERS LP
Entity Central Index Key	0001583103
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Common Unitholders Public [Member]
Entity Information
Entity Common Stock, Units Outstanding		37,262,986
Subordinated Unitholder Valero [Member]
Entity Information
Entity Common Stock, Units Outstanding		28,789,989
General Partner Valero [Member]
Entity Information
Entity Common Stock, Units Outstanding		1,347,702

XML

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015	[1]
Current assets:
Cash and cash equivalents	$ 67,167	$ 80,783
Receivables from related party	23,614	18,088
Prepaid expenses and other	1,081	632
Total current assets	91,862	99,503
Property and equipment, at cost	1,132,034	1,110,399	[2]
Accumulated depreciation	(331,213)	(310,558)	[2]
Property and equipment, net	800,821	799,841	[2]
Deferred charges and other assets, net	2,987	3,322
Total assets	895,670	902,666
Current liabilities:
Current portion of capital lease obligations	250	913
Accounts payable	6,809	9,264
Accrued liabilities	1,276	1,062
Accrued liabilities – related party	677	628
Taxes other than income taxes	1,679	1,276
Deferred revenue from related party	1,263	129
Total current liabilities	11,954	13,272
Debt and capital lease obligations, net of current portion	314,065	175,246
Notes payable to related party	370,000	370,000
Deferred income taxes	504	320
Other long-term liabilities	1,142	1,116
Commitments and contingencies
Partners' capital:
Common unitholders – public (21,515,609 and 21,509,651 units outstanding)	594,881	581,489
Common unitholder – Valero (15,747,377 and 15,018,602 units outstanding)	15,895	28,430
Subordinated unitholder – Valero (28,789,989 and 28,789,989 units outstanding)	(406,344)	(313,961)
General partner – Valero (1,347,702 and 1,332,829 units outstanding)	(6,427)	(5,805)
Net investment	0	52,559
Total partners’ capital	198,005	342,712
Total liabilities and partners’ capital	$ 895,670	$ 902,666

[1] Financial information has been retrospectively adjusted for the acquisition of the McKee Terminal Services Business from Valero Energy Corporation. See Notes 1 and 3.

[2] Financial information has been retrospectively adjusted for the acquisition of the McKee Terminal Services Business.

XML

Consolidated Balance Sheets (Parenthetical) - shares	Jun. 30, 2016	Dec. 31, 2015
Partners' capital:
Common unitholders – public, units outstanding	21,515,609	21,509,651
Common unitholder – Valero, units outstanding	15,747,377	15,018,602
Subordinated unitholder – Valero, units outstanding	28,789,989	28,789,989
General partner – Valero, units outstanding	1,347,702	1,332,829

XML

Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands		3 Months Ended			6 Months Ended
		Jun. 30, 2016	Jun. 30, 2015		Jun. 30, 2016	Jun. 30, 2015
Operating revenues – related party		$ 87,664	$ 60,245	[1]	$ 166,431	$ 102,131	[1]
Costs and expenses:
Operating expenses (b)	[2]	20,520	22,191	[1]	41,397	46,487	[1]
General and administrative expenses (c)	[3]	3,578	3,312	[1]	7,806	7,024	[1]
Depreciation expense		10,622	9,904	[1]	21,243	19,343	[1]
Total costs and expenses		34,720	35,407	[1]	70,446	72,854	[1]
Operating income		52,944	24,838	[1]	95,985	29,277	[1]
Other income, net		57	26	[1]	134	137	[1]
Interest and debt expense, net of capitalized interest (d)	[4]	(3,251)	(1,411)	[1]	(5,910)	(2,012)	[1]
Income before income taxes		49,750	23,453	[1]	90,209	27,402	[1]
Income tax expense (benefit)		303	(51)	[1]	545	(177)	[1]
Net income		49,447	23,504	[1]	89,664	27,579	[1]
Less: Net loss attributable to Predecessor		0	(10,158)	[1]	(3,081)	(28,204)	[1]
Net income attributable to partners		49,447	33,662		92,745	55,783
Less: General partner’s interest in net income		5,213	1,357		8,717	2,209
Limited partners’ interest in net income		$ 44,234	$ 32,305		$ 84,028	$ 53,574
Net income per limited partner unit – basic and diluted:
Common units		$ 0.67	$ 0.54		$ 1.28	$ 0.91
Subordinated units		$ 0.67	$ 0.54		$ 1.28	$ 0.90
Weighted-average limited partner units outstanding:
Common units – basic and diluted		37,248	30,698		36,884	30,066
Subordinated units – basic and diluted		28,790	28,790		28,790	28,790
Cash distribution declared per unit		$ 0.3650	$ 0.2925		$ 0.7050	$ 0.5700

[1] Financial information has been retrospectively adjusted for the acquisitions of the McKee Terminal Services Business and the Corpus Christi Terminal Services Business from Valero Energy Corporation. See Notes 1 and 3.

[2] Includes operating expenses – related party of $10,863 thousand and $10,643 thousand for the three months ended June 30, 2016 and 2015, respectively, and $21,796 thousand and $20,478 thousand for the six months ended June 30, 2016 and 2015, respectively.

[3] Includes general and administrative expenses – related party of $2,998 thousand and $2,800 thousand for the three months ended June 30, 2016 and 2015, respectively, and $5,923 thousand and $5,459 thousand for the six months ended June 30, 2016 and 2015, respectively.

[4] Includes interest and debt expense – related party of $1,584 thousand and $578 thousand for the three months ended June 30, 2016 and 2015, respectively, and $3,150 thousand and $768 thousand for the six months ended June 30, 2016 and 2015, respectively.

XML

Consolidated Statements of Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Supplemental information:
(b) Operating expenses – related party	$ 10,863	$ 10,643	$ 21,796	$ 20,478
(c) General and administrative expenses – related party	2,998	2,800	5,923	5,459
(d) Interest and debt expense – related party	$ 1,584	$ 578	$ 3,150	$ 768

XML

Consolidated Statements of Partners' Capital (Unaudited) - USD ($) $ in Thousands		Total	Common Unitholders Public [Member]	Common Unitholder Valero [Member]	Subordinated Unitholder Valero [Member]	General Partner Valero [Member]	Net Investment [Member]
Beginning balance at Dec. 31, 2014	[1]	$ 1,021,970	$ 374,954	$ 58,844	$ 146,804	$ 4,617	$ 436,751
Increase (Decrease) in Partners' Capital Roll Forward
Net loss attributable to Predecessor	[2]	(28,204)	0	0	0	0	(28,204)
Net income attributable to partners		55,783	15,703	11,665	26,205	2,210	0
Net transfers from Valero Energy Corporation	[2]	35,122	0	0	0	0	35,122
Allocation of Valero Energy Corporation’s net investment in acquisitions		0	0	82,330	205,396	8,383	(296,109)
Consideration paid to Valero Energy Corporation for acquisitions		(671,220)	0	(186,625)	(465,592)	(19,003)	0
Units issued to Valero Energy Corporation in connection with acquisitions		100,000	0	98,000	0	2,000	0
Noncash capital contributions from Valero Energy Corporation		7,343	0	2,273	4,866	204	0
Cash distributions to unitholders		(33,089)	(9,375)	(6,802)	(15,647)	(1,265)	0
Distribution equivalent right payments		(6)	(6)	0	0	0	0
Unit-based compensation		88	88	0	0	0	0
Ending balance at Jun. 30, 2015	[2]	487,787	381,364	59,685	(97,968)	(2,854)	147,560
Beginning balance at Dec. 31, 2015	[1]	342,712	581,489	28,430	(313,961)	(5,805)	52,559
Increase (Decrease) in Partners' Capital Roll Forward
Net loss attributable to Predecessor		(3,081)	0	0	0	0	(3,081)
Net income attributable to partners		92,745	27,503	19,699	36,826	8,717	0
Net transfers from Valero Energy Corporation		1,883	0	0	0	0	1,883
Allocation of Valero Energy Corporation’s net investment in acquisitions		0	0	17,088	32,758	1,515	(51,361)
Consideration paid to Valero Energy Corporation for acquisitions		(240,000)	0	(79,848)	(153,067)	(7,085)	0
Units issued to Valero Energy Corporation in connection with acquisitions		36,000	0	35,280	0	720	0
Offering costs		(6)	(6)	0	0	0	0
Noncash capital contributions from Valero Energy Corporation		15,978	0	5,407	10,101	470	0
Cash distributions to unitholders		(48,310)	(14,189)	(10,161)	(19,001)	(4,959)	0
Distribution equivalent right payments		(9)	(9)	0	0	0	0
Unit-based compensation		93	93	0	0	0	0
Ending balance at Jun. 30, 2016		$ 198,005	$ 594,881	$ 15,895	$ (406,344)	$ (6,427)	$ 0

[1] Financial information has been retrospectively adjusted for the acquisition of the McKee Terminal Services Business from Valero Energy Corporation. See Notes 1 and 3.

[2] Financial information has been retrospectively adjusted for the acquisitions of the McKee Terminal Services Business and the Corpus Christi Terminal Services Business from Valero Energy Corporation. See Notes 1 and 3.

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016		Jun. 30, 2015	[1]
Cash flows from operating activities:
Net income	$ 89,664		$ 27,579
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	21,243		19,343
Deferred income tax expense (benefit)	219		(395)
Changes in current assets and current liabilities	(3,442)		(6,073)
Changes in deferred charges and credits and other operating activities, net	249		459
Net cash provided by operating activities	107,933		40,913
Cash flows from investing activities:
Capital expenditures	(9,325)		(18,291)
Acquisitions from Valero Energy Corporation	(51,361)		(296,109)
Other investing activities, net	18		14
Net cash used in investing activities	(60,668)		(314,386)
Cash flows from financing activities:
Proceeds from debt borrowings	139,000		200,000
Proceeds from note payable to related party	0		160,000
Payments of capital lease obligations	(663)		(580)
Payment of offering costs	(108)		0
Excess purchase price paid to Valero Energy Corporation over the carrying value of acquired assets	(152,639)		(275,111)
Cash distributions to unitholders and distribution equivalent right payments	(48,319)		(33,095)
Net transfers from Valero Energy Corporation	1,848		37,722
Net cash provided by (used in) financing activities	(60,881)		88,936
Net decrease in cash and cash equivalents	(13,616)		(184,537)
Cash and cash equivalents at beginning of period	80,783	[2]	236,579
Cash and cash equivalents at end of period	$ 67,167		$ 52,042

[1] Financial information has been retrospectively adjusted for the acquisitions of the McKee Terminal Services Business and the Corpus Christi Terminal Services Business from Valero Energy Corporation. See Notes 1 and 3.

[2] Financial information has been retrospectively adjusted for the acquisition of the McKee Terminal Services Business from Valero Energy Corporation. See Notes 1 and 3.

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Business and Basis of Presentation

6 Months Ended

Jun. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BUSINESS AND BASIS OF PRESENTATION

1. BUSINESS AND BASIS OF PRESENTATION

Business

Valero Energy Partners LP (the Partnership) is a fee-based, master limited partnership formed by Valero (defined below) in July 2013 to own, operate, develop, and acquire crude oil and refined petroleum products pipelines, terminals, and other transportation and logistics assets.

References in this report to “Partnership,” “we,” “us,” or “our” refer to Valero Energy Partners LP, one or more of its subsidiaries, or all of them taken as a whole. References in this report to “Valero” refer collectively to Valero Energy Corporation and its subsidiaries, other than Valero Energy Partners LP, any of its subsidiaries, or its general partner.

We acquired the McKee Terminal Services Business, the Corpus Christi Terminal Services Business, and the Houston and St. Charles Terminal Services Business from Valero (collectively, the Acquisitions) on April 1, 2016, October 1, 2015, and March 1, 2015, respectively. See Note 3 for further discussion of the Acquisitions. Our assets consist of crude oil and refined petroleum products pipeline and terminal systems in the United States (U.S.) Gulf Coast and U.S. Mid-Continent regions that are integral to the operations of nine of Valero’s refineries.

We generate operating revenues by providing fee-based transportation and terminaling services to Valero.

Basis of Presentation

Our consolidated financial statements include the accounts of the Partnership as well as our Predecessor (defined below). All intercompany accounts and transactions have been eliminated.

The Acquisitions were accounted for as transfers of businesses between entities under the common control of Valero. As entities under the common control of Valero, we recorded the Acquisitions on our balance sheet at Valero’s carrying value rather than fair value. Transfers between entities under common control are accounted for as though the transfer occurred as of the beginning of the period of transfer, and prior period financial statements and financial information are retrospectively adjusted to furnish comparative information. Accordingly, the Partnership’s financial statements and related notes have been retrospectively adjusted to include the historical results of the Acquisitions for all periods presented prior to the effective dates of each acquisition. We refer to the historical results of the Acquisitions prior to their respective acquisition dates as those of our “Predecessor.”

The combined financial statements of our Predecessor were derived from the consolidated financial statements and accounting records of Valero and reflect the combined historical financial position, results of operations, and cash flows of our Predecessor as if the Acquisitions had been combined for periods prior to the effective dates of each acquisition.

There were no transactions between the operations of our Predecessor; therefore, there were no intercompany transactions or accounts to be eliminated in connection with the combination of those operations. In addition, our Predecessor’s statements of income include direct charges for the management and operation of our assets and certain expenses allocated by Valero for general corporate services, such as treasury, accounting, and legal services. These expenses were charged, or allocated, to our Predecessor based on the nature of the expenses. Prior to the Acquisitions, our Predecessor transferred cash to Valero daily and Valero funded our Predecessor’s operating and investing activities as needed. Therefore, transfers of cash to and from Valero’s cash management system are reflected as a component of net investment and are reflected as a financing activity in our statements of cash flows. In addition, interest expense was not included on the net cash transfers from Valero.

The financial information presented for the periods after the effective dates of the Acquisitions represents the consolidated financial position, results of operations, and cash flows of the Partnership.

These unaudited financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Act of 1934. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All such adjustments are of a normal recurring nature unless disclosed otherwise. Financial information for the three and six months ended June 30, 2016 and 2015 included in these Condensed Notes to Consolidated Financial Statements is derived from our unaudited financial statements. Operating results for the three and six months endedJune 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016.

The balance sheet as of December 31, 2015 has been derived from our audited financial statements as of that date, retrospectively adjusted for the acquisition of the McKee Terminal Services Business on April 1, 2016 (see Note 3). For further information, refer to our financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2015.

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. On an ongoing basis, we review our estimates based on currently available information. Changes in facts and circumstances may result in revised estimates.

Accounting Pronouncements Adopted During the Period

In April 2015, the provisions of Accounting Standards Codification (ASC) Subtopic 835-30, “Interest–Imputation of Interest,” were amended to simplify the presentation of debt issuance costs. The guidance requires that debt issuance costs related to a note be reported in the balance sheet as a direct deduction from the face amount of that note, consistent with debt discounts, and that amortization of debt issuance costs be reported as interest expense. In August 2015, these provisions were further amended with guidance from the Securities and Exchange Commission staff, which provides that the staff would not object to an entity deferring and presenting debt issuance costs related to a line-of-credit arrangement as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. These provisions were effective for annual reporting periods beginning after December 15, 2015, and interim periods within those annual periods. The adoption of this guidance effective January 1, 2016 did not affect our financial position or results of operations as our debt issuance costs are associated with our revolving credit facility and therefore were not required to be reclassified.

Also in April 2015, the provisions of ASC Topic 260, “Earnings Per Share,” were amended to provide guidance on how master limited partnerships apply the two-class method of calculating earnings per unit for historical periods when they receive net assets in a dropdown transaction that is accounted for as a transaction between entities under common control as required under Subtopic 805-50, “Business Combinations–Related Issues.” The amendments specify that for purposes of calculating earnings per unit under the two-class method for periods before the date of a dropdown transaction, earnings or losses of a transferred business should be allocated entirely to the general partner. Qualitative disclosures are also required to describe how the rights to earnings or losses differ before and after the dropdown transaction for purposes of computing earnings per unit under the two-class method. These provisions were effective for annual reporting periods beginning after December 15, 2015, and interim periods within those annual periods. We have historically calculated our net income per unit after a dropdown transaction as prescribed by these provisions; therefore, the adoption of this guidance effective January 1, 2016 did not affect our financial position or results of operations, but resulted in additional disclosures as shown in Note 9.

In November 2015, the provisions of ASC Topic 740, “Income Taxes,” were amended to simplify the presentation of deferred income taxes. The amendments require that deferred tax liabilities and assets be classified as noncurrent in a classified balance sheet. The amendments are effective for financial statements for annual periods beginning after December 15, 2016, and interim periods within those annual periods, with early adoption permitted as of the beginning of any interim or annual period. Effective January 1, 2016, we adopted this guidance on a retrospective basis, but such adoption did not affect our financial position as we had no current deferred tax amounts to reclassify.

Accounting Pronouncements Not Yet Adopted

In May 2014, the ASC was amended and a new accounting standard, ASC Topic 606, “Revenue from Contracts with Customers,” was issued to clarify the principles for recognizing revenue. The standard is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual periods. We are currently evaluating the effect that adopting this standard will have on our financial statements and related disclosures.

In January 2016, the provisions of ASC Subtopic 825-10, “Financial Instruments–Overall,” were amended to enhance the reporting model for financial instruments regarding certain aspects of recognition, measurement, presentation, and disclosure. These provisions are effective for annual reporting periods beginning after December 15, 2017, and interim periods within those annual periods. We are currently evaluating the effect that adopting this standard will have on our financial statements and related disclosures.

In February 2016, the ASC was amended and a new accounting standard, ASC Topic 842, “Leases,” was issued to increase the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The new standard is effective for public companies for annual reporting periods beginning after December 15, 2018, and interim reporting periods within those annual periods, with early adoption permitted. We are currently evaluating the effect that adopting this standard will have on our financial statements and related disclosures.

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Acquisitions

6 Months Ended

Jun. 30, 2016

Business Combinations [Abstract]

ACQUISITIONS

3. ACQUISITIONS

Acquisition in 2016

McKee Terminal Services Business

Effective April 1, 2016, we acquired a subsidiary from Valero that owns and operates a crude oil, intermediates, and refined petroleum products terminal that supports Valero’s McKee Refinery (in Sunray, Texas) for total consideration of $240.0 million, which consisted of (i) a cash distribution of $204.0 million and (ii) the issuance of 728,775 common units and 14,873 general partner units having an aggregate value of $36.0 million. We funded the cash distribution to Valero with $65.0 million of our cash on hand and $139.0 million of borrowings under our revolving credit facility. See Note 6 for further discussion of the borrowings under our revolving credit facility.

Acquisitions in 2015

Corpus Christi Terminal Services Business

Effective October 1, 2015, we acquired Valero’s Corpus Christi East Terminal and Corpus Christi West Terminal (collectively, the Corpus Christi Terminal Services Business) for total consideration of $465.0 million, which consisted of (i) a cash distribution of $395.0 million and (ii) the issuance of 1,570,513 common units and 32,051 general partner units having an aggregate value of $70.0 million. We funded the cash distribution to Valero with $395.0 million of proceeds from a subordinated credit agreement with Valero. The Corpus Christi Terminal Services Business is engaged in the business of terminaling crude oil, intermediates, and refined petroleum products at terminals in Corpus Christi, Texas and supports Valero’s Corpus Christi East and West Refineries. See Note 6 for further discussion of the borrowings under this subordinated credit agreement.

Houston and St. Charles Terminal Services Business

Effective March 1, 2015, we acquired two subsidiaries from Valero that own and operate crude oil, intermediates, and refined petroleum products terminals supporting Valero’s Houston Refinery (in Houston, Texas) and St. Charles Refinery (in Norco, Louisiana) for total consideration of $671.2 million, which consisted of (i) a cash distribution of $571.2 million and (ii) the issuance of 1,908,100 common units and 38,941 general partner units having an aggregate value of $100.0 million. We funded the cash distribution to Valero with $211.2 million of our cash on hand, $200.0 million of borrowings under our revolving credit facility, and $160.0 million of proceeds from a subordinated credit agreement we entered into with Valero. See Note 6 for further discussion of the borrowings under our revolving credit facility and this subordinated credit agreement.

Presentation of Reported Financial Information

The following table presents our previously reported balance sheet as of December 31, 2015 retrospectively adjusted for the acquisition of the McKee Terminal Services Business (in thousands). The assets and liabilities of the Houston and St. Charles Terminal Services Business and the Corpus Christi Terminal Services Business are included in our previously reported balance sheet as of December 31, 2015.

	Valero Energy Partners LP (Previously Reported)			McKee Terminal  Services Business			Valero Energy Partners LP (Currently Reported)
ASSETS
Current assets:
Cash and cash equivalents	$	80,783		$	—		$	80,783
Receivables from related party	18,088			—			18,088
Prepaid expenses and other	632			—			632
Total current assets	99,503			—			99,503
Property and equipment, at cost	1,010,881			99,518			1,110,399
Accumulated depreciation	(263,599		)	(46,959		)	(310,558		)
Property and equipment, net	747,282			52,559			799,841
Deferred charges and other assets, net	3,322			—			3,322
Total assets	$	850,107		$	52,559		$	902,666
LIABILITIES AND PARTNERS’ CAPITAL
Current liabilities:
Current portion of capital lease obligations	$	913		$	—		$	913
Accounts payable	9,264			—			9,264
Accrued liabilities	1,062			—			1,062
Accrued liabilities – related party	628			—			628
Taxes other than income taxes	1,276			—			1,276
Deferred revenue from related party	129			—			129
Total current liabilities	13,272			—			13,272
Debt and capital lease obligations, net of current portion	175,246			—			175,246
Notes payable to related party	370,000			—			370,000
Deferred income taxes	320			—			320
Other long-term liabilities	1,116			—			1,116
Partners’ capital:
Common unitholders – public	581,489			—			581,489
Common unitholder – Valero	28,430			—			28,430
Subordinated unitholder – Valero	(313,961		)	—			(313,961		)
General partner – Valero	(5,805		)	—			(5,805		)
Net investment	—			52,559			52,559
Total partners’ capital	290,153			52,559			342,712
Total liabilities and partners’ capital	$	850,107		$	52,559		$	902,666

The following tables present our previously reported statements of income for the three and six months ended June 30, 2015 retrospectively adjusted for the acquisitions of the McKee Terminal Services Business and the Corpus Christi Terminal Services Business (in thousands). The results of operations of the Houston and St. Charles Terminal Services Business are included in our previously reported statements of income for the three and six months ended June 30, 2015.

	Three Months Ended June 30, 2015
	Valero Energy Partners LP (Previously Reported)			McKee Terminal Services Business			Corpus Christi Terminal  Services  Business			Valero Energy Partners LP (Currently Reported)
Operating revenues – related party	$	60,245		$	—		$	—		$	60,245
Costs and expenses:
Operating expenses	14,374			1,686			6,131			22,191
General and administrative expenses	3,160			63			89			3,312
Depreciation expense	7,715			1,125			1,064			9,904
Total costs and expenses	25,249			2,874			7,284			35,407
Operating income (loss)	34,996			(2,874		)	(7,284		)	24,838
Other income, net	26			—			—			26
Interest and debt expense, net of capitalized interest	(1,411		)	—			—			(1,411		)
Income (loss) before income taxes	33,611			(2,874		)	(7,284		)	23,453
Income tax benefit	(51		)	—			—			(51		)
Net income (loss)	33,662			(2,874		)	(7,284		)	23,504
Less: Net loss attributable to Predecessor	—			(2,874		)	(7,284		)	(10,158		)
Net income attributable to partners	$	33,662		$	—		$	—		$	33,662

	Six Months Ended June 30, 2015
	Valero Energy Partners LP (Previously Reported)			McKee Terminal Services Business			Corpus Christi Terminal  Services  Business			Valero Energy Partners LP (Currently Reported)
Operating revenues – related party	$	102,131		$	—		$	—		$	102,131
Costs and expenses:
Operating expenses	32,238			3,358			10,891			46,487
General and administrative expenses	6,725			123			176			7,024
Depreciation expense	15,203			2,254			1,886			19,343
Total costs and expenses	54,166			5,735			12,953			72,854
Operating income (loss)	47,965			(5,735		)	(12,953		)	29,277
Other income, net	137			—			—			137
Interest and debt expense, net of capitalized interest	(2,012		)	—			—			(2,012		)
Income (loss) before income taxes	46,090			(5,735		)	(12,953		)	27,402
Income tax benefit	(177		)	—			—			(177		)
Net income (loss)	46,267			(5,735		)	(12,953		)	27,579
Less: Net loss attributable to Predecessor	(9,516		)	(5,735		)	(12,953		)	(28,204		)
Net income attributable to partners	$	55,783		$	—		$	—		$	55,783

The following table presents our previously reported statement of cash flows for the six months ended June 30, 2015 retrospectively adjusted for the acquisitions of the McKee Terminal Services Business and the Corpus Christi Terminal Services Business (in thousands). The cash flows of the Houston and St. Charles Terminal Services Business are included in our previously reported statement of cash flows for the six months ended June 30, 2015.

	Six Months Ended June 30, 2015
	Valero Energy Partners LP (Previously Reported)			McKee Terminal Services Business			Corpus Christi Terminal  Services  Business			Valero Energy Partners LP (Currently Reported)
Cash flows from operating activities:
Net income (loss)	$	46,267		$	(5,735	)	$	(12,953	)	$	27,579
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation expense	15,203			2,254			1,886			19,343
Deferred income tax benefit	(395		)	—			—			(395		)
Changes in current assets and current liabilities	(6,073		)	—			—			(6,073		)
Changes in deferred charges and credits and other operating activities, net	459			—			—			459
Net cash provided by (used in) operating activities	55,461			(3,481		)	(11,067		)	40,913
Cash flows from investing activities:
Capital expenditures	(6,052		)	(65		)	(12,174		)	(18,291		)
Acquisition of the Houston and St. Charles Terminal Services Business from Valero Energy Corporation	(296,109		)	—			—			(296,109		)
Other investing activities, net	14			—			—			14
Net cash used in investing activities	(302,147		)	(65		)	(12,174		)	(314,386		)
Cash flows from financing activities:
Proceeds from debt borrowings	200,000			—			—			200,000
Proceeds from note payable to related party	160,000			—			—			160,000
Payments of capital lease obligations	(580		)	—			—			(580		)
Excess purchase price paid to Valero Energy Corporation over the carrying value of the Houston and St. Charles Terminal Services Business	(275,111		)	—			—			(275,111		)
Cash distributions to unitholders and distribution equivalent right payments	(33,095		)	—			—			(33,095		)
Net transfers from Valero Energy Corporation	10,935			3,546			23,241			37,722
Net cash provided by financing activities	62,149			3,546			23,241			88,936
Net decrease in cash and cash equivalents	(184,537		)	—			—			(184,537		)
Cash and cash equivalents at beginning of period	236,579			—			—			236,579
Cash and cash equivalents at end of period	$	52,042		$	—		$	—		$	52,042

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Related-Party Transactions

6 Months Ended

Jun. 30, 2016

Related Party Transactions [Abstract]

RELATED-PARTY TRANSACTIONS

4. RELATED-PARTY TRANSACTIONS

Agreements Effective with the Acquisition of the McKee Terminal Services Business

The following agreements became effective on April 1, 2016, in connection with our acquisition of the McKee Terminal Services Business.

Commercial Agreements

We entered into an additional schedule under our existing master terminal services agreement with respect to the McKee terminal. The schedule has an initial term through April 1, 2026, provides Valero an option to renew for one additional five-year term, and contains minimum throughput requirements and inflation escalators.

Amended and Restated Omnibus Agreement

We entered into amended and restated schedules to our amended and restated omnibus agreement with Valero that include the following modifications, among others:

• the indemnification obligations of Valero and the Partnership were extended to apply to the McKee terminal;

• the administrative fee was increased from $11.2 million to $11.7 million per year, which amount is prorated for the remainder of 2016 based on the number of days from April 1, 2016 to December 31, 2016; and

• the grant to Valero of a right of first refusal with respect to the McKee terminal.

Amended and Restated Services and Secondment Agreement

Our general partner entered into amended and restated exhibits to the amended and restated services and secondment agreement with Valero to provide for the additional secondment of employees to our general partner for the provision of services with respect to the McKee terminal.

Lease and Access Agreement

We entered into a lease and access agreement with Valero with respect to the land on which the McKee terminal is located. This agreement has an initial term through April 1, 2026 with four automatic successive renewal periods of five years each. Either party may terminate the lease after the initial term by providing written notice. Initially, our base rent is $594,000 per year and is subject to an annual inflation escalator. We are also required to pay Valero a customary expense reimbursement for taxes, utilities, and similar costs incurred by Valero related to the leased premises.

Summary of Transactions

Receivables from related party consist of the following (in thousands):

	June 30, 2016			December 31, 2015
Trade receivables – related party	$	29,033		$	26,103
Due to related party	(5,419		)	(8,015		)
Receivables from related party	$	23,614		$	18,088

The amounts shown in our balance sheets as “deferred revenue from related party” represent the unearned revenues from Valero associated with Valero’s quarterly deficiency payment, which is the result of Valero not meeting its minimum quarterly throughput commitments under our master transportation services agreement and master terminal services agreement (collectively, the commercial agreements).

All of our operating revenues are generated by providing services to Valero under our commercial agreements with Valero. The cost of services provided to us by Valero, including the cost of financing provided to us by Valero in connection with the Acquisitions as more fully described in Notes 3 and 6, are reflected in the supplemental information disclosure on our statements of income.

Concentration Risk

All of our operating revenues were derived from transactions with Valero and all of our receivables were due from Valero. Therefore, we are subject to the business risks associated with Valero’s business.

Leases

Certain schedules under our commercial agreements with Valero are considered operating leases under U.S. GAAP. These agreements contain minimum throughput requirements and escalation clauses to adjust transportation tariffs and terminaling and storage fees to reflect changes in price indices. Revenues from all lease agreements are recorded within “operating revenues – related party” in our statements of income.

The amounts shown in our statements of income as “operating revenues – related party” included revenues from our current lease arrangements as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Minimum rental revenues	$	56,277	$	31,858	$	104,526	$	47,477
Contingent rental revenues	9,224		5,666		17,561		8,982
Total lease revenues	$	65,501	$	37,524	$	122,087	$	56,459

As of June 30, 2016, future minimum rentals to be received related to these noncancelable lease agreements were as follows (in thousands):

Remainder of 2016	$	114,236
2017	226,610
2018	226,610
2019	226,610
2020	227,231
Thereafter	995,947
Total minimum rental payments	$	2,017,244

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Property and Equipment

6 Months Ended

Jun. 30, 2016

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

5. PROPERTY AND EQUIPMENT

Major classes of property and equipment consisted of the following (in thousands):

	June 30, 2016
	Non-Leased Assets			Assets Under Operating Leases (a)			Total
Pipelines and related assets	$	239,239		$	46,964		$	286,203
Terminals and related assets	111,037			695,871			806,908
Other	9,479			—			9,479
Land	4,672			—			4,672
Construction-in-progress	24,772			—			24,772
Property and equipment, at cost	389,199			742,835			1,132,034
Accumulated depreciation	(124,872		)	(206,341		)	(331,213		)
Property and equipment, net	$	264,327		$	536,494		$	800,821

	December 31, 2015 (b)
	Non-Leased Assets			Assets Under Operating Leases (a)			Total
Pipelines and related assets	$	228,586		$	46,739		$	275,325
Terminals and related assets	210,276			580,194			790,470
Other	9,352			—			9,352
Land	4,672			—			4,672
Construction-in-progress	30,580			—			30,580
Property and equipment, at cost	483,466			626,933			1,110,399
Accumulated depreciation	(165,539		)	(145,019		)	(310,558		)
Property and equipment, net	$	317,927		$	481,914		$	799,841
(a) Represents assets owned by us for which we are the lessor (see Note 4). Certain assets acquired in the acquisition of the McKee Terminal Services Business were reflected as assets under operating leases subsequent to the acquisition on April 1, 2016.
(b) Financial information has been retrospectively adjusted for the acquisition of the McKee Terminal Services Business.

We have certain pipeline assets under capital lease agreements totaling $14.9 million as of June 30, 2016 and December 31, 2015. Accumulated amortization on assets under capital leases was $14.7 million and $14.1 million as of June 30, 2016 and December 31, 2015, respectively.

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Debt

6 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

DEBT

6. DEBT

Revolving Credit Facility

We have a $750.0 million senior unsecured revolving credit facility agreement (the Revolver) that matures in November 2020. We have the option to increase the aggregate commitments under the Revolver to $1.0 billion, subject to certain restrictions. The Revolver also provides for the issuance of letters of credit of up to $100.0 million. Our obligations under the Revolver are jointly and severally guaranteed by our directly owned subsidiary, Valero Partners Operating Co. LLC. Borrowings on the Revolver bear interest at a variable rate, which was 1.75 percent as of June 30, 2016. Accrued interest is payable in arrears on each Interest Payment Date (as defined in the Revolver) and on the maturity date.

In connection with the acquisition of the McKee Terminal Services Business, we borrowed $139.0 million under the Revolver on April 1, 2016. In connection with the acquisition of the Houston and St. Charles Terminal Services Business, we borrowed $200.0 million under the Revolver on March 2, 2015. See Note 3 for information about our acquisitions from Valero.

During the six months ended June 30, 2016 and 2015, we had no repayments under the Revolver. As of June 30, 2016, we had $314.0 million of borrowings outstanding and no letters of credit outstanding under the Revolver. As of December 31, 2015, we had $175.0 million of borrowings outstanding and no letters of credit outstanding under the Revolver.

Subordinated Credit Agreements

During 2015, we entered into two subordinated credit agreements with Valero (the Loan Agreements), under which we borrowed $395.0 million and $160.0 million (collectively, the loans) to finance a portion of the acquisitions of the Corpus Christi Terminal Services Business and the Houston and St. Charles Terminal Services Business, respectively, as described in Note 3. The loans mature on March 1 and October 1, 2020, respectively, and may be prepaid at any time without penalty; we are not permitted to reborrow amounts. The loans bear interest at the LIBO Rate (as defined in the Loan Agreements) plus the applicable margin. Accrued interest is payable in arrears on each Interest Payment Date (as defined in the Loan Agreements) and on each maturity date. As of June 30, 2016, the interest rate on each of the loans was 1.71 percent.

During the six months ended June 30, 2016 and 2015, we had no repayments under the loans. As of June 30, 2016 and December 31, 2015, we had $370.0 million outstanding under the Loan Agreements.

Capitalized Interest

Capitalized interest was $3,000 and $1,000 for the three months ended June 30, 2016 and 2015, respectively, and $35,000 and $6,000 for the six months endedJune 30, 2016 and 2015, respectively.

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Operating Leases

6 Months Ended

Jun. 30, 2016

Leases, Operating [Abstract]

OPERATING LEASES

7. OPERATING LEASES

We have long-term operating lease commitments primarily with Valero for land used in the terminaling and transportation of crude oil and refined petroleum products. Certain leases contain escalation clauses and renewal options that allow for the same rental payment over the lease term or a revised rental payment based on fair rental value or negotiated value. Currently, one of our land leases with Valero does not contain a renewal option. We expect that, in the normal course of business, our leases will be renewed or replaced by other leases.

As of June 30, 2016, our future minimum rentals for leases having initial or remaining noncancelable lease terms in excess of one year were as follows (in thousands):

Remainder of 2016	$	4,409
2017	8,823
2018	8,780
2019	8,780
2020	8,780
Thereafter	38,707
Total minimum rental payments	$	78,279

Rental expense for all operating leases was $2.3 million and $1.9 million for the three months ended June 30, 2016 and 2015, respectively, and $4.6 million and $2.7 million for the six months ended June 30, 2016 and 2015, respectively. Rental expense for the three and six months ended June 30, 2015 has been retrospectively adjusted for the acquisitions of the McKee Terminal Services Business and the Corpus Christi Terminal Services Business.

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Cash Distributions

6 Months Ended

Jun. 30, 2016

Partners' Capital [Abstract]

CASH DISTRIBUTIONS

8. CASH DISTRIBUTIONS

Our partnership agreement prescribes the amount and priority of cash distributions that the common and subordinated unitholders and general partner will receive. Our distributions are declared subsequent to quarter end. The table below summarizes information related to our quarterly cash distributions that have been declared since January 1, 2015:

Quarterly Period Ended	Total Quarterly Distribution (Per Unit)		Total Cash Distribution (In Thousands)		Declaration Date	Record Date	Distribution Date
June 30, 2016	$	0.3650	$	28,912	July 21, 2016	August 1, 2016	August 9, 2016
March 31, 2016	0.3400		25,608		April 21, 2016	May 2, 2016	May 10, 2016
December 31, 2015	0.3200		22,711		January 25, 2016	February 4, 2016	February 11, 2016
September 30, 2015	0.3075		20,164		October 15, 2015	November 2, 2015	November 10, 2015
June 30, 2015	0.2925		18,456		July 24, 2015	August 3, 2015	August 11, 2015
March 31, 2015	0.2775		17,266		April 21, 2015	May 1, 2015	May 12, 2015
December 31, 2014	0.2660		15,829		January 26, 2015	February 5, 2015	February 12, 2015

The following table reflects the allocation of total cash distributions to the general and limited partners and distribution equivalent right (DER) payments applicable to the period in which the distributions and DERs were earned (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
General partner’s distributions:
General partner’s distributions	$	578	$	369	$	1,090	$	714
General partner’s incentive distribution rights (IDRs)	4,224		684		6,862		1,094
Total general partner’s distributions	4,802		1,053		7,952		1,808
Limited partners’ distributions:
Common – public	7,849		5,045		15,159		9,832
Common – Valero	5,747		3,934		11,102		7,666
Subordinated – Valero	10,509		8,421		20,297		16,410
Total limited partners’ distributions	24,105		17,400		46,558		33,908
DERs	5		3		10		6
Total cash distributions, including DERs	$	28,912	$	18,456	$	54,520	$	35,722

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Net Income Per Limited Partner Unit

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

NET INCOME PER LIMITED PARTNER UNIT

9. NET INCOME PER LIMITED PARTNER UNIT

Distributions 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 net income per limited partner unit.

We calculate net income available to limited partners based on the distributions pertaining to each period’s net income. After considering the appropriate period’s distributions, the remaining undistributed earnings or excess distributions over earnings, if any, are allocated to the general partner, limited partners, and other participating securities in accordance with the contractual terms of our partnership agreement and as prescribed under the two-class method. Participating securities include IDRs and awards under our Valero Energy Partners LP 2013 Incentive Compensation Plan (2013 ICP) that receive DERs. However, the terms of our partnership agreement limit the general partner’s incentive distribution to the amount of available cash, which, as defined in our partnership agreement, is net of reserves deemed appropriate. As such, IDRs are not allocated undistributed earnings or distributions in excess of earnings in the calculation of net income per limited partner unit.

Net losses of our Predecessor are allocated to the general partner. Subsequent to the effective dates of the Acquisitions, we calculate net income available to limited partners based on the methodology described above.

Basic net income per limited partner unit is determined pursuant to the two-class method for master limited partnerships. The two-class method is an earnings allocation formula that is used to determine earnings to our general partner, common unitholders, and participating securities according to (i) distributions pertaining to each period’s net income and (ii) participation rights in undistributed earnings.

Diluted net income per limited partner unit is also determined using the two-class method, unless the treasury stock method is more dilutive. For the three and six months ended June 30, 2016 and 2015, we used the two-class method to determine diluted net income per limited partner unit. We did not have any potentially dilutive instruments outstanding during the three and six months ended June 30, 2016 and 2015.

Net income per unit was computed as follows (in thousands, except per unit amounts):

	Three Months Ended June 30, 2016
			Limited Partners
	General Partner		Common Units		Subordinated Units		Restricted Units		Total
Allocation of net income to determine net income available to limited partners:
Distributions, excluding general partner’s IDRs	$	578	$	13,596	$	10,509	$	—	$	24,683
General partner’s IDRs	4,224		—		—		—		4,224
DERs	—		—		—		5		5
Distributions and DERs declared	4,802		13,596		10,509		5		28,912
Undistributed earnings	411		11,348		8,772		4		20,535
Net income available to limited partners – basic and diluted	$	5,213	$	24,944	$	19,281	$	9	$	49,447
Net income per limited partner unit – basic and diluted:
Weighted-average units outstanding			37,248		28,790
Net income per limited partner unit – basic and diluted			$	0.67	$	0.67

	Three Months Ended June 30, 2015
			Limited Partners
	General Partner		Common Units		Subordinated Units		Restricted Units		Total
Allocation of net income to determine net income available to limited partners:
Distributions, excluding general partner’s IDRs	$	369	$	8,979	$	8,421	$	—	$	17,769
General partner’s IDRs	684		—		—		—		684
DERs	—		—		—		3		3
Distributions and DERs declared	1,053		8,979		8,421		3		18,456
Undistributed earnings	304		7,688		7,211		3		15,206
Net income available to limited partners – basic and diluted	$	1,357	$	16,667	$	15,632	$	6	$	33,662
Net income per limited partner unit – basic and diluted:
Weighted-average units outstanding			30,698		28,790
Net income per limited partner unit – basic and diluted			$	0.54	$	0.54

	Six Months Ended June 30, 2016
			Limited Partners
	General Partner		Common Units		Subordinated Units		Restricted Units		Total
Allocation of net income to determine net income available to limited partners:
Distributions, excluding general partner’s IDRs	$	1,090	$	26,261	$	20,297	$	—	$	47,648
General partner’s IDRs	6,862		—		—		—		6,862
DERs	—		—		—		10		10
Distributions and DERs declared	7,952		26,261		20,297		10		54,520
Undistributed earnings	765		21,034		16,418		8		38,225
Net income available to limited partners – basic and diluted	$	8,717	$	47,295	$	36,715	$	18	$	92,745
Net income per limited partner unit – basic and diluted:
Weighted-average units outstanding			36,884		28,790
Net income per limited partner unit – basic and diluted			$	1.28	$	1.28

	Six Months Ended June 30, 2015
			Limited Partners
	General Partner		Common Units		Subordinated Units		Restricted Units		Total
Allocation of net income to determine net income available to limited partners:
Distributions, excluding general partner’s IDRs	$	714	$	17,498	$	16,410	$	—	$	34,622
General partner’s IDRs	1,094		—		—		—		1,094
DERs	—		—		—		6		6
Distributions and DERs declared	1,808		17,498		16,410		6		35,722
Undistributed earnings	401		10,042		9,615		3		20,061
Net income available to limited partners – basic and diluted	$	2,209	$	27,540	$	26,025	$	9	$	55,783
Net income per limited partner unit – basic and diluted:
Weighted-average units outstanding			30,066		28,790
Net income per limited partner unit – basic and diluted			$	0.91	$	0.90

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Unit Activity

6 Months Ended

Jun. 30, 2016

Partners' Capital Notes [Abstract]

UNIT ACTIVITY

10. UNIT ACTIVITY

Activity in the number of units was as follows:

	Common			General Partner
	Public	Valero	Subordinated		Total
Balance as of December 31, 2014	17,255,208	11,539,989	28,789,989	1,175,102	58,760,288
Unit-based compensation	4,443	—	—	—	4,443
Units issued in connection with the acquisition of the Houston and St. Charles Terminal Services Business (see Note 3)	—	1,908,100	—	38,941	1,947,041
Balance as of June 30, 2015	17,259,651	13,448,089	28,789,989	1,214,043	60,711,772
Balance as of December 31, 2015	21,509,651	15,018,602	28,789,989	1,332,829	66,651,071
Unit-based compensation	5,958	—	—	—	5,958
Units issued in connection with the acquisition of the McKee Terminal Services Business (see Note 3)	—	728,775	—	14,873	743,648
Balance as of June 30, 2016	21,515,609	15,747,377	28,789,989	1,347,702	67,400,677

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Supplemental Cash Flow Information

6 Months Ended

Jun. 30, 2016

Supplemental Cash Flow Information [Abstract]

SUPPLEMENTAL CASH FLOW INFORMATION

11. SUPPLEMENTAL CASH FLOW INFORMATION

In order to determine net cash provided by operating activities, net income is adjusted by, among other things, changes in current assets and current liabilities as follows (in thousands):

	Six Months Ended June 30,
	2016			2015
Decrease (increase) in current assets:
Receivables from related party	$	(5,526	)	$	(6,817	)
Prepaid expenses and other	(449		)	20
Increase in current liabilities:
Accounts payable	733			31
Accrued liabilities	214			183
Accrued liabilities – related party	49			183
Taxes other than income taxes	403			139
Deferred revenue from related party	1,134			188
Changes in current assets and current liabilities	$	(3,442	)	$	(6,073	)

The above changes in current assets and current liabilities differ from changes between amounts reflected in the applicable balance sheets for the respective periods for the following reasons:

• amounts accrued for capital expenditures are reflected in investing activities when such amounts are paid; and

• amounts accrued for offering costs and debt issuance costs are reflected in financing activities when paid.

We attributed $51.4 million of the total $204.0 million cash consideration paid for the acquisition of the McKee Terminal Services Business to the historical carrying value of this acquisition (an investing cash outflow). The remaining $152.6 million of the cash consideration represents the excess purchase price paid over the carrying value of this acquisition (a financing cash outflow).

We attributed $296.1 million of the total $571.2 million cash consideration paid for the acquisition of the Houston and St. Charles Terminal Services Business to the historical carrying value of this acquisition (an investing cash outflow). The remaining $275.1 million of cash consideration represents the excess purchase price paid over the carrying value of this acquisition (a financing cash outflow).

Noncash investing and financing activities for the six months ended June 30, 2016 included:

• a capital contribution of $16.0 million for projects that were funded by Valero related primarily to the Houston, St. Charles, and Corpus Christi terminals. Valero agreed to fund these projects in connection with the Acquisitions; and

• the issuance of 728,775 common units and 14,873 general partner units having an aggregate value of $36.0 million in connection with the acquisition of the McKee Terminal Services Business described in Note 3.

Noncash investing and financing activities for the six months ended June 30, 2015 included:

• a capital contribution of $7.3 million for projects that were funded by Valero related to the Houston and St. Charles terminals. Valero agreed to fund these projects as part of the acquisition of the Houston and St. Charles Terminal Services Business; and

• the issuance of 1,908,100 common units and 38,941 general partner units having an aggregate value of $100.0 million in connection with the acquisition of the Houston and St. Charles Terminal Services Business described in Note 3.

The following is a reconciliation of the amounts presented as net transfers from Valero on our statement of partners’ capital and statement of cash flows (in thousands):

	Six Months Ended June 30,
	2016		2015 (a)
Net transfers from Valero per statements of partners’ capital	$	1,883	$	35,122
Less: Noncash transfers from (to) Valero	35		(2,600		)
Net transfers from Valero per statements of cash flows	$	1,848	$	37,722
(a) Financial information has been retrospectively adjusted for the acquisitions of the McKee Terminal Services Business and the Corpus Christi Terminal Services Business.

Noncash transfers from (to) Valero primarily represent the change in amounts accrued by our Predecessor for capital expenditures as we do not reflect capital expenditures in our statements of cash flows until such amounts are paid.

Cash flows related to interest and income taxes paid were as follows (in thousands):

	Six Months Ended June 30,
	2016		2015
Interest paid	$	5,484	$	1,578
Income taxes paid	496		441

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Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

FAIR VALUE OF FINANCIAL INSTRUMENTS

12. FAIR VALUE OF FINANCIAL INSTRUMENTS

The fair value of cash and cash equivalents approximates the carrying value due to the low level of credit risk of these assets combined with their market interest rates. The fair value measurement for cash and cash equivalents is categorized as Level 1 in the fair value hierarchy. Fair values determined by Level 1 inputs utilize unadjusted quoted prices in active markets for identical assets.

The fair values of our debt and notes payable to related party approximate their carrying values as our borrowings bear interest based upon short-term floating market interest rates. The fair value measurement for these liabilities is categorized as Level 2 in the fair value hierarchy. Fair values determined by Level 2 utilize inputs that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

Our consolidated financial statements include the accounts of the Partnership as well as our Predecessor (defined below). All intercompany accounts and transactions have been eliminated.

The Acquisitions were accounted for as transfers of businesses between entities under the common control of Valero. As entities under the common control of Valero, we recorded the Acquisitions on our balance sheet at Valero’s carrying value rather than fair value. Transfers between entities under common control are accounted for as though the transfer occurred as of the beginning of the period of transfer, and prior period financial statements and financial information are retrospectively adjusted to furnish comparative information. Accordingly, the Partnership’s financial statements and related notes have been retrospectively adjusted to include the historical results of the Acquisitions for all periods presented prior to the effective dates of each acquisition. We refer to the historical results of the Acquisitions prior to their respective acquisition dates as those of our “Predecessor.”

The combined financial statements of our Predecessor were derived from the consolidated financial statements and accounting records of Valero and reflect the combined historical financial position, results of operations, and cash flows of our Predecessor as if the Acquisitions had been combined for periods prior to the effective dates of each acquisition.

There were no transactions between the operations of our Predecessor; therefore, there were no intercompany transactions or accounts to be eliminated in connection with the combination of those operations. In addition, our Predecessor’s statements of income include direct charges for the management and operation of our assets and certain expenses allocated by Valero for general corporate services, such as treasury, accounting, and legal services. These expenses were charged, or allocated, to our Predecessor based on the nature of the expenses. Prior to the Acquisitions, our Predecessor transferred cash to Valero daily and Valero funded our Predecessor’s operating and investing activities as needed. Therefore, transfers of cash to and from Valero’s cash management system are reflected as a component of net investment and are reflected as a financing activity in our statements of cash flows. In addition, interest expense was not included on the net cash transfers from Valero.

The financial information presented for the periods after the effective dates of the Acquisitions represents the consolidated financial position, results of operations, and cash flows of the Partnership.

These unaudited financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Act of 1934. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All such adjustments are of a normal recurring nature unless disclosed otherwise. Financial information for the three and six months ended June 30, 2016 and 2015 included in these Condensed Notes to Consolidated Financial Statements is derived from our unaudited financial statements. Operating results for the three and six months endedJune 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016.

The balance sheet as of December 31, 2015 has been derived from our audited financial statements as of that date, retrospectively adjusted for the acquisition of the McKee Terminal Services Business on April 1, 2016 (see Note 3). For further information, refer to our financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2015.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. On an ongoing basis, we review our estimates based on currently available information. Changes in facts and circumstances may result in revised estimates.

Debt Issuance Costs

In April 2015, the provisions of Accounting Standards Codification (ASC) Subtopic 835-30, “Interest–Imputation of Interest,” were amended to simplify the presentation of debt issuance costs. The guidance requires that debt issuance costs related to a note be reported in the balance sheet as a direct deduction from the face amount of that note, consistent with debt discounts, and that amortization of debt issuance costs be reported as interest expense. In August 2015, these provisions were further amended with guidance from the Securities and Exchange Commission staff, which provides that the staff would not object to an entity deferring and presenting debt issuance costs related to a line-of-credit arrangement as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. These provisions were effective for annual reporting periods beginning after December 15, 2015, and interim periods within those annual periods. The adoption of this guidance effective January 1, 2016 did not affect our financial position or results of operations as our debt issuance costs are associated with our revolving credit facility and therefore were not required to be reclassified.

Net Income per Limited Partner Unit

Also in April 2015, the provisions of ASC Topic 260, “Earnings Per Share,” were amended to provide guidance on how master limited partnerships apply the two-class method of calculating earnings per unit for historical periods when they receive net assets in a dropdown transaction that is accounted for as a transaction between entities under common control as required under Subtopic 805-50, “Business Combinations–Related Issues.” The amendments specify that for purposes of calculating earnings per unit under the two-class method for periods before the date of a dropdown transaction, earnings or losses of a transferred business should be allocated entirely to the general partner. Qualitative disclosures are also required to describe how the rights to earnings or losses differ before and after the dropdown transaction for purposes of computing earnings per unit under the two-class method. These provisions were effective for annual reporting periods beginning after December 15, 2015, and interim periods within those annual periods. We have historically calculated our net income per unit after a dropdown transaction as prescribed by these provisions; therefore, the adoption of this guidance effective January 1, 2016 did not affect our financial position or results of operations, but resulted in additional disclosures as shown in Note 9.

Income Taxes

In November 2015, the provisions of ASC Topic 740, “Income Taxes,” were amended to simplify the presentation of deferred income taxes. The amendments require that deferred tax liabilities and assets be classified as noncurrent in a classified balance sheet. The amendments are effective for financial statements for annual periods beginning after December 15, 2016, and interim periods within those annual periods, with early adoption permitted as of the beginning of any interim or annual period. Effective January 1, 2016, we adopted this guidance on a retrospective basis, but such adoption did not affect our financial position as we had no current deferred tax amounts to reclassify.

Accounting Pronouncements Not Yet Adopted

In May 2014, the ASC was amended and a new accounting standard, ASC Topic 606, “Revenue from Contracts with Customers,” was issued to clarify the principles for recognizing revenue. The standard is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual periods. We are currently evaluating the effect that adopting this standard will have on our financial statements and related disclosures.

In January 2016, the provisions of ASC Subtopic 825-10, “Financial Instruments–Overall,” were amended to enhance the reporting model for financial instruments regarding certain aspects of recognition, measurement, presentation, and disclosure. These provisions are effective for annual reporting periods beginning after December 15, 2017, and interim periods within those annual periods. We are currently evaluating the effect that adopting this standard will have on our financial statements and related disclosures.

In February 2016, the ASC was amended and a new accounting standard, ASC Topic 842, “Leases,” was issued to increase the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The new standard is effective for public companies for annual reporting periods beginning after December 15, 2018, and interim reporting periods within those annual periods, with early adoption permitted. We are currently evaluating the effect that adopting this standard will have on our financial statements and related disclosures.

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Acquisitions (Tables)

6 Months Ended

Jun. 30, 2016

Business Combinations [Abstract]

Consolidated balance sheet, statements of income, and statement of cash flows

The following table presents our previously reported balance sheet as of December 31, 2015 retrospectively adjusted for the acquisition of the McKee Terminal Services Business (in thousands). The assets and liabilities of the Houston and St. Charles Terminal Services Business and the Corpus Christi Terminal Services Business are included in our previously reported balance sheet as of December 31, 2015.

	Valero Energy Partners LP (Previously Reported)			McKee Terminal  Services Business			Valero Energy Partners LP (Currently Reported)
ASSETS
Current assets:
Cash and cash equivalents	$	80,783		$	—		$	80,783
Receivables from related party	18,088			—			18,088
Prepaid expenses and other	632			—			632
Total current assets	99,503			—			99,503
Property and equipment, at cost	1,010,881			99,518			1,110,399
Accumulated depreciation	(263,599		)	(46,959		)	(310,558		)
Property and equipment, net	747,282			52,559			799,841
Deferred charges and other assets, net	3,322			—			3,322
Total assets	$	850,107		$	52,559		$	902,666
LIABILITIES AND PARTNERS’ CAPITAL
Current liabilities:
Current portion of capital lease obligations	$	913		$	—		$	913
Accounts payable	9,264			—			9,264
Accrued liabilities	1,062			—			1,062
Accrued liabilities – related party	628			—			628
Taxes other than income taxes	1,276			—			1,276
Deferred revenue from related party	129			—			129
Total current liabilities	13,272			—			13,272
Debt and capital lease obligations, net of current portion	175,246			—			175,246
Notes payable to related party	370,000			—			370,000
Deferred income taxes	320			—			320
Other long-term liabilities	1,116			—			1,116
Partners’ capital:
Common unitholders – public	581,489			—			581,489
Common unitholder – Valero	28,430			—			28,430
Subordinated unitholder – Valero	(313,961		)	—			(313,961		)
General partner – Valero	(5,805		)	—			(5,805		)
Net investment	—			52,559			52,559
Total partners’ capital	290,153			52,559			342,712
Total liabilities and partners’ capital	$	850,107		$	52,559		$	902,666

The following tables present our previously reported statements of income for the three and six months ended June 30, 2015 retrospectively adjusted for the acquisitions of the McKee Terminal Services Business and the Corpus Christi Terminal Services Business (in thousands). The results of operations of the Houston and St. Charles Terminal Services Business are included in our previously reported statements of income for the three and six months ended June 30, 2015.

	Three Months Ended June 30, 2015
	Valero Energy Partners LP (Previously Reported)			McKee Terminal Services Business			Corpus Christi Terminal  Services  Business			Valero Energy Partners LP (Currently Reported)
Operating revenues – related party	$	60,245		$	—		$	—		$	60,245
Costs and expenses:
Operating expenses	14,374			1,686			6,131			22,191
General and administrative expenses	3,160			63			89			3,312
Depreciation expense	7,715			1,125			1,064			9,904
Total costs and expenses	25,249			2,874			7,284			35,407
Operating income (loss)	34,996			(2,874		)	(7,284		)	24,838
Other income, net	26			—			—			26
Interest and debt expense, net of capitalized interest	(1,411		)	—			—			(1,411		)
Income (loss) before income taxes	33,611			(2,874		)	(7,284		)	23,453
Income tax benefit	(51		)	—			—			(51		)
Net income (loss)	33,662			(2,874		)	(7,284		)	23,504
Less: Net loss attributable to Predecessor	—			(2,874		)	(7,284		)	(10,158		)
Net income attributable to partners	$	33,662		$	—		$	—		$	33,662

	Six Months Ended June 30, 2015
	Valero Energy Partners LP (Previously Reported)			McKee Terminal Services Business			Corpus Christi Terminal  Services  Business			Valero Energy Partners LP (Currently Reported)
Operating revenues – related party	$	102,131		$	—		$	—		$	102,131
Costs and expenses:
Operating expenses	32,238			3,358			10,891			46,487
General and administrative expenses	6,725			123			176			7,024
Depreciation expense	15,203			2,254			1,886			19,343
Total costs and expenses	54,166			5,735			12,953			72,854
Operating income (loss)	47,965			(5,735		)	(12,953		)	29,277
Other income, net	137			—			—			137
Interest and debt expense, net of capitalized interest	(2,012		)	—			—			(2,012		)
Income (loss) before income taxes	46,090			(5,735		)	(12,953		)	27,402
Income tax benefit	(177		)	—			—			(177		)
Net income (loss)	46,267			(5,735		)	(12,953		)	27,579
Less: Net loss attributable to Predecessor	(9,516		)	(5,735		)	(12,953		)	(28,204		)
Net income attributable to partners	$	55,783		$	—		$	—		$	55,783

The following table presents our previously reported statement of cash flows for the six months ended June 30, 2015 retrospectively adjusted for the acquisitions of the McKee Terminal Services Business and the Corpus Christi Terminal Services Business (in thousands). The cash flows of the Houston and St. Charles Terminal Services Business are included in our previously reported statement of cash flows for the six months ended June 30, 2015.

	Six Months Ended June 30, 2015
	Valero Energy Partners LP (Previously Reported)			McKee Terminal Services Business			Corpus Christi Terminal  Services  Business			Valero Energy Partners LP (Currently Reported)
Cash flows from operating activities:
Net income (loss)	$	46,267		$	(5,735	)	$	(12,953	)	$	27,579
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation expense	15,203			2,254			1,886			19,343
Deferred income tax benefit	(395		)	—			—			(395		)
Changes in current assets and current liabilities	(6,073		)	—			—			(6,073		)
Changes in deferred charges and credits and other operating activities, net	459			—			—			459
Net cash provided by (used in) operating activities	55,461			(3,481		)	(11,067		)	40,913
Cash flows from investing activities:
Capital expenditures	(6,052		)	(65		)	(12,174		)	(18,291		)
Acquisition of the Houston and St. Charles Terminal Services Business from Valero Energy Corporation	(296,109		)	—			—			(296,109		)
Other investing activities, net	14			—			—			14
Net cash used in investing activities	(302,147		)	(65		)	(12,174		)	(314,386		)
Cash flows from financing activities:
Proceeds from debt borrowings	200,000			—			—			200,000
Proceeds from note payable to related party	160,000			—			—			160,000
Payments of capital lease obligations	(580		)	—			—			(580		)
Excess purchase price paid to Valero Energy Corporation over the carrying value of the Houston and St. Charles Terminal Services Business	(275,111		)	—			—			(275,111		)
Cash distributions to unitholders and distribution equivalent right payments	(33,095		)	—			—			(33,095		)
Net transfers from Valero Energy Corporation	10,935			3,546			23,241			37,722
Net cash provided by financing activities	62,149			3,546			23,241			88,936
Net decrease in cash and cash equivalents	(184,537		)	—			—			(184,537		)
Cash and cash equivalents at beginning of period	236,579			—			—			236,579
Cash and cash equivalents at end of period	$	52,042		$	—		$	—		$	52,042

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Related-Party Transactions (Tables)

6 Months Ended

Jun. 30, 2016

Related Party Transactions [Abstract]

Summary of related-party transactions

Receivables from related party consist of the following (in thousands):

	June 30, 2016			December 31, 2015
Trade receivables – related party	$	29,033		$	26,103
Due to related party	(5,419		)	(8,015		)
Receivables from related party	$	23,614		$	18,088

Lessor disclosure of operating leases

As of June 30, 2016, future minimum rentals to be received related to these noncancelable lease agreements were as follows (in thousands):

Remainder of 2016	$	114,236
2017	226,610
2018	226,610
2019	226,610
2020	227,231
Thereafter	995,947
Total minimum rental payments	$	2,017,244

The amounts shown in our statements of income as “operating revenues – related party” included revenues from our current lease arrangements as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Minimum rental revenues	$	56,277	$	31,858	$	104,526	$	47,477
Contingent rental revenues	9,224		5,666		17,561		8,982
Total lease revenues	$	65,501	$	37,524	$	122,087	$	56,459

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Property and Equipment (Tables)

6 Months Ended

Jun. 30, 2016

Property, Plant and Equipment [Abstract]

Major classes of property and equipment

Major classes of property and equipment consisted of the following (in thousands):

	June 30, 2016
	Non-Leased Assets			Assets Under Operating Leases (a)			Total
Pipelines and related assets	$	239,239		$	46,964		$	286,203
Terminals and related assets	111,037			695,871			806,908
Other	9,479			—			9,479
Land	4,672			—			4,672
Construction-in-progress	24,772			—			24,772
Property and equipment, at cost	389,199			742,835			1,132,034
Accumulated depreciation	(124,872		)	(206,341		)	(331,213		)
Property and equipment, net	$	264,327		$	536,494		$	800,821

	December 31, 2015 (b)
	Non-Leased Assets			Assets Under Operating Leases (a)			Total
Pipelines and related assets	$	228,586		$	46,739		$	275,325
Terminals and related assets	210,276			580,194			790,470
Other	9,352			—			9,352
Land	4,672			—			4,672
Construction-in-progress	30,580			—			30,580
Property and equipment, at cost	483,466			626,933			1,110,399
Accumulated depreciation	(165,539		)	(145,019		)	(310,558		)
Property and equipment, net	$	317,927		$	481,914		$	799,841
(a) Represents assets owned by us for which we are the lessor (see Note 4). Certain assets acquired in the acquisition of the McKee Terminal Services Business were reflected as assets under operating leases subsequent to the acquisition on April 1, 2016.
(b) Financial information has been retrospectively adjusted for the acquisition of the McKee Terminal Services Business.

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Operating Leases (Tables)

6 Months Ended

Jun. 30, 2016

Leases, Operating [Abstract]

Future minimum rentals for leases having initial or remaining noncancelable lease terms in excess of one year

As of June 30, 2016, our future minimum rentals for leases having initial or remaining noncancelable lease terms in excess of one year were as follows (in thousands):

Remainder of 2016	$	4,409
2017	8,823
2018	8,780
2019	8,780
2020	8,780
Thereafter	38,707
Total minimum rental payments	$	78,279

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Cash Distributions (Tables)

6 Months Ended

Jun. 30, 2016

Partners' Capital [Abstract]

Distributions made to unitholders

The table below summarizes information related to our quarterly cash distributions that have been declared since January 1, 2015:

Quarterly Period Ended	Total Quarterly Distribution (Per Unit)		Total Cash Distribution (In Thousands)		Declaration Date	Record Date	Distribution Date
June 30, 2016	$	0.3650	$	28,912	July 21, 2016	August 1, 2016	August 9, 2016
March 31, 2016	0.3400		25,608		April 21, 2016	May 2, 2016	May 10, 2016
December 31, 2015	0.3200		22,711		January 25, 2016	February 4, 2016	February 11, 2016
September 30, 2015	0.3075		20,164		October 15, 2015	November 2, 2015	November 10, 2015
June 30, 2015	0.2925		18,456		July 24, 2015	August 3, 2015	August 11, 2015
March 31, 2015	0.2775		17,266		April 21, 2015	May 1, 2015	May 12, 2015
December 31, 2014	0.2660		15,829		January 26, 2015	February 5, 2015	February 12, 2015

The following table reflects the allocation of total cash distributions to the general and limited partners and distribution equivalent right (DER) payments applicable to the period in which the distributions and DERs were earned (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
General partner’s distributions:
General partner’s distributions	$	578	$	369	$	1,090	$	714
General partner’s incentive distribution rights (IDRs)	4,224		684		6,862		1,094
Total general partner’s distributions	4,802		1,053		7,952		1,808
Limited partners’ distributions:
Common – public	7,849		5,045		15,159		9,832
Common – Valero	5,747		3,934		11,102		7,666
Subordinated – Valero	10,509		8,421		20,297		16,410
Total limited partners’ distributions	24,105		17,400		46,558		33,908
DERs	5		3		10		6
Total cash distributions, including DERs	$	28,912	$	18,456	$	54,520	$	35,722

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Net Income Per Limited Partner Unit (Tables)

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Computation of net income per unit

Net income per unit was computed as follows (in thousands, except per unit amounts):

	Three Months Ended June 30, 2016
			Limited Partners
	General Partner		Common Units		Subordinated Units		Restricted Units		Total
Allocation of net income to determine net income available to limited partners:
Distributions, excluding general partner’s IDRs	$	578	$	13,596	$	10,509	$	—	$	24,683
General partner’s IDRs	4,224		—		—		—		4,224
DERs	—		—		—		5		5
Distributions and DERs declared	4,802		13,596		10,509		5		28,912
Undistributed earnings	411		11,348		8,772		4		20,535
Net income available to limited partners – basic and diluted	$	5,213	$	24,944	$	19,281	$	9	$	49,447
Net income per limited partner unit – basic and diluted:
Weighted-average units outstanding			37,248		28,790
Net income per limited partner unit – basic and diluted			$	0.67	$	0.67

	Three Months Ended June 30, 2015
			Limited Partners
	General Partner		Common Units		Subordinated Units		Restricted Units		Total
Allocation of net income to determine net income available to limited partners:
Distributions, excluding general partner’s IDRs	$	369	$	8,979	$	8,421	$	—	$	17,769
General partner’s IDRs	684		—		—		—		684
DERs	—		—		—		3		3
Distributions and DERs declared	1,053		8,979		8,421		3		18,456
Undistributed earnings	304		7,688		7,211		3		15,206
Net income available to limited partners – basic and diluted	$	1,357	$	16,667	$	15,632	$	6	$	33,662
Net income per limited partner unit – basic and diluted:
Weighted-average units outstanding			30,698		28,790
Net income per limited partner unit – basic and diluted			$	0.54	$	0.54

	Six Months Ended June 30, 2016
			Limited Partners
	General Partner		Common Units		Subordinated Units		Restricted Units		Total
Allocation of net income to determine net income available to limited partners:
Distributions, excluding general partner’s IDRs	$	1,090	$	26,261	$	20,297	$	—	$	47,648
General partner’s IDRs	6,862		—		—		—		6,862
DERs	—		—		—		10		10
Distributions and DERs declared	7,952		26,261		20,297		10		54,520
Undistributed earnings	765		21,034		16,418		8		38,225
Net income available to limited partners – basic and diluted	$	8,717	$	47,295	$	36,715	$	18	$	92,745
Net income per limited partner unit – basic and diluted:
Weighted-average units outstanding			36,884		28,790
Net income per limited partner unit – basic and diluted			$	1.28	$	1.28

	Six Months Ended June 30, 2015
			Limited Partners
	General Partner		Common Units		Subordinated Units		Restricted Units		Total
Allocation of net income to determine net income available to limited partners:
Distributions, excluding general partner’s IDRs	$	714	$	17,498	$	16,410	$	—	$	34,622
General partner’s IDRs	1,094		—		—		—		1,094
DERs	—		—		—		6		6
Distributions and DERs declared	1,808		17,498		16,410		6		35,722
Undistributed earnings	401		10,042		9,615		3		20,061
Net income available to limited partners – basic and diluted	$	2,209	$	27,540	$	26,025	$	9	$	55,783
Net income per limited partner unit – basic and diluted:
Weighted-average units outstanding			30,066		28,790
Net income per limited partner unit – basic and diluted			$	0.91	$	0.90

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Unit Activity (Tables)

6 Months Ended

Jun. 30, 2016

Partners' Capital Notes [Abstract]

Unit rollforward

Activity in the number of units was as follows:

	Common			General Partner
	Public	Valero	Subordinated		Total
Balance as of December 31, 2014	17,255,208	11,539,989	28,789,989	1,175,102	58,760,288
Unit-based compensation	4,443	—	—	—	4,443
Units issued in connection with the acquisition of the Houston and St. Charles Terminal Services Business (see Note 3)	—	1,908,100	—	38,941	1,947,041
Balance as of June 30, 2015	17,259,651	13,448,089	28,789,989	1,214,043	60,711,772
Balance as of December 31, 2015	21,509,651	15,018,602	28,789,989	1,332,829	66,651,071
Unit-based compensation	5,958	—	—	—	5,958
Units issued in connection with the acquisition of the McKee Terminal Services Business (see Note 3)	—	728,775	—	14,873	743,648
Balance as of June 30, 2016	21,515,609	15,747,377	28,789,989	1,347,702	67,400,677

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Supplemental Cash Flow Information (Tables)

6 Months Ended

Jun. 30, 2016

Supplemental Cash Flow Information [Abstract]

Supplemental cash flow disclosures

In order to determine net cash provided by operating activities, net income is adjusted by, among other things, changes in current assets and current liabilities as follows (in thousands):

	Six Months Ended June 30,
	2016			2015
Decrease (increase) in current assets:
Receivables from related party	$	(5,526	)	$	(6,817	)
Prepaid expenses and other	(449		)	20
Increase in current liabilities:
Accounts payable	733			31
Accrued liabilities	214			183
Accrued liabilities – related party	49			183
Taxes other than income taxes	403			139
Deferred revenue from related party	1,134			188
Changes in current assets and current liabilities	$	(3,442	)	$	(6,073	)

Cash flows related to interest and income taxes paid were as follows (in thousands):

	Six Months Ended June 30,
	2016		2015
Interest paid	$	5,484	$	1,578
Income taxes paid	496		441

Reconciliation of net transfers from Valero

The following is a reconciliation of the amounts presented as net transfers from Valero on our statement of partners’ capital and statement of cash flows (in thousands):

	Six Months Ended June 30,
	2016		2015 (a)
Net transfers from Valero per statements of partners’ capital	$	1,883	$	35,122
Less: Noncash transfers from (to) Valero	35		(2,600		)
Net transfers from Valero per statements of cash flows	$	1,848	$	37,722
(a) Financial information has been retrospectively adjusted for the acquisitions of the McKee Terminal Services Business and the Corpus Christi Terminal Services Business.

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Business and Basis of Presentation (Details) - Majority Shareholder [Member]	6 Months Ended
	Jun. 30, 2016 refineries
Business and Basis of Presentation (Textual)
Number of Valero owned refineries	9
McKee Terminal Services Business [Member]
Business and Basis of Presentation (Textual)
Effective date of acquisition	Apr. 01, 2016
Corpus Christi Terminal Services Business [Member]
Business and Basis of Presentation (Textual)
Effective date of acquisition	Oct. 01, 2015
Houston and St. Charles Terminal Services Business [Member]
Business and Basis of Presentation (Textual)
Effective date of acquisition	Mar. 01, 2015

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Acquisitions (Details) $ in Thousands					3 Months Ended			6 Months Ended				12 Months Ended
		Apr. 01, 2016 USD ($) subsidiaries shares	Oct. 01, 2015 USD ($) shares	Mar. 01, 2015 USD ($) subsidiaries shares	Jun. 30, 2016 USD ($)	Jun. 30, 2015 USD ($)		Jun. 30, 2016 USD ($) shares		Jun. 30, 2015 USD ($) shares		Dec. 31, 2015 USD ($)		Jun. 30, 2016 USD ($)	Dec. 31, 2015 USD ($)		Jun. 30, 2015 USD ($)		Dec. 31, 2014 USD ($)
Current assets:
Cash and cash equivalents					$ 67,167	$ 52,042	[1]	$ 80,783	[2]	$ 236,579	[1]	$ 236,579	[1]	$ 67,167	$ 80,783	[2]	$ 52,042	[1]	$ 236,579	[1]
Receivables from related party														23,614	18,088	[2]
Prepaid expenses and other														1,081	632	[2]
Total current assets														91,862	99,503	[2]
Property and equipment, at cost														1,132,034	1,110,399	[2],[3]
Accumulated depreciation														(331,213)	(310,558)	[2],[3]
Property and equipment, net														800,821	799,841	[2],[3]
Deferred charges and other assets, net														2,987	3,322	[2]
Total assets														895,670	902,666	[2]
Current liabilities:
Current portion of capital lease obligations														250	913	[2]
Accounts payable														6,809	9,264	[2]
Accrued liabilities														1,276	1,062	[2]
Accrued liabilities – related party														677	628	[2]
Taxes other than income taxes														1,679	1,276	[2]
Deferred revenue from related party														1,263	129	[2]
Total current liabilities														11,954	13,272	[2]
Debt and capital lease obligations, net of current portion														314,065	175,246	[2]
Notes payable to related party														370,000	370,000	[2]
Deferred income taxes														504	320	[2]
Other long-term liabilities														1,142	1,116	[2]
Partners' Capital [Abstract]
Common unitholders – public (21,515,609 and 21,509,651 units outstanding)														594,881	581,489	[2]
Common unitholder – Valero (15,747,377 and 15,018,602 units outstanding)														15,895	28,430	[2]
Subordinated unitholder – Valero (28,789,989 and 28,789,989 units outstanding)														(406,344)	(313,961)	[2]
General partner – Valero (1,347,702 and 1,332,829 units outstanding)														(6,427)	(5,805)	[2]
Net investment														0	52,559	[2]
Total partners’ capital														198,005	342,712	[2]	487,787	[1]	1,021,970	[2]
Total liabilities and partners’ capital														895,670	902,666	[2]
Consolidated Statements of Income
Operating revenues – related party					87,664	60,245	[1]	166,431		102,131	[1]
Costs and expenses:
Operating expenses	[4]				20,520	22,191	[1]	41,397		46,487	[1]
General and administrative expenses	[5]				3,578	3,312	[1]	7,806		7,024	[1]
Depreciation expense					10,622	9,904	[1]	21,243		19,343	[1]
Total costs and expenses					34,720	35,407	[1]	70,446		72,854	[1]
Operating income					52,944	24,838	[1]	95,985		29,277	[1]
Other income, net					57	26	[1]	134		137	[1]
Interest and debt expense, net of capitalized interest	[6]				(3,251)	(1,411)	[1]	(5,910)		(2,012)	[1]
Income before income taxes					49,750	23,453	[1]	90,209		27,402	[1]
Income tax expense					303	(51)	[1]	545		(177)	[1]
Net income					49,447	23,504	[1]	89,664		27,579	[1]
Less: Net loss attributable to Predecessor					0	(10,158)	[1]	(3,081)		(28,204)	[1]
Net income attributable to partners					49,447	33,662		92,745		55,783
Cash flows from operating activities:
Net income (loss)					49,447	23,504	[1]	89,664		27,579	[1]
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation expense					10,622	9,904	[1]	21,243		19,343	[1]
Deferred income tax benefit								219		(395)	[1]
Changes in current assets and current liabilities								(3,442)		(6,073)	[1]
Changes in deferred charges and credits and other operating activities, net								249		459	[1]
Net cash provided by operating activities								107,933		40,913	[1]
Cash flows from investing activities:
Capital expenditures								(9,325)		(18,291)	[1]
Acquisitions from Valero Energy Corporation								(51,361)		(296,109)	[1]
Other investing activities, net								18		14	[1]
Net cash used in investing activities								(60,668)		(314,386)	[1]
Cash flows from financing activities:
Proceeds from debt borrowings								139,000		200,000	[1]
Proceeds from note payable to related party								0		160,000	[1]
Payments of capital lease obligations								(663)		(580)	[1]
Excess purchase price paid to Valero Energy Corporation over the carrying value of acquired assets								(152,639)		(275,111)	[1]
Cash distributions to unitholders and distribution equivalent right payments								(48,319)		(33,095)	[1]
Net transfers from Valero Energy Corporation								1,848		37,722	[1]
Net cash provided by (used in) financing activities								(60,881)		88,936	[1]
Net decrease in cash and cash equivalents								(13,616)		(184,537)	[1]
Cash and cash equivalents at beginning of period								80,783	[2]	236,579	[1]	236,579	[1]
Cash and cash equivalents at end of period					$ 67,167	52,042	[1]	$ 67,167		$ 52,042	[1]	80,783	[2]
Acquisitions (Textual)
Units issued in connection with acquisitions | shares								743,648		1,947,041
Valero Energy Partners LP [Member]
Current assets:
Cash and cash equivalents						52,042		$ 80,783		$ 236,579		236,579			80,783		52,042		236,579
Receivables from related party															18,088
Prepaid expenses and other															632
Total current assets															99,503
Property and equipment, at cost															1,010,881
Accumulated depreciation															(263,599)
Property and equipment, net															747,282
Deferred charges and other assets, net															3,322
Total assets															850,107
Current liabilities:
Current portion of capital lease obligations															913
Accounts payable															9,264
Accrued liabilities															1,062
Accrued liabilities – related party															628
Taxes other than income taxes															1,276
Deferred revenue from related party															129
Total current liabilities															13,272
Debt and capital lease obligations, net of current portion															175,246
Notes payable to related party															370,000
Deferred income taxes															320
Other long-term liabilities															1,116
Partners' Capital [Abstract]
Common unitholders – public (21,515,609 and 21,509,651 units outstanding)															581,489
Common unitholder – Valero (15,747,377 and 15,018,602 units outstanding)															28,430
Subordinated unitholder – Valero (28,789,989 and 28,789,989 units outstanding)															(313,961)
General partner – Valero (1,347,702 and 1,332,829 units outstanding)															(5,805)
Net investment															0
Total partners’ capital															290,153
Total liabilities and partners’ capital															850,107
Consolidated Statements of Income
Operating revenues – related party						60,245				102,131
Costs and expenses:
Operating expenses						14,374				32,238
General and administrative expenses						3,160				6,725
Depreciation expense						7,715				15,203
Total costs and expenses						25,249				54,166
Operating income						34,996				47,965
Other income, net						26				137
Interest and debt expense, net of capitalized interest						(1,411)				(2,012)
Income before income taxes						33,611				46,090
Income tax expense						(51)				(177)
Net income						33,662				46,267
Less: Net loss attributable to Predecessor						0				(9,516)
Net income attributable to partners						33,662				55,783
Cash flows from operating activities:
Net income (loss)						33,662				46,267
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation expense						7,715				15,203
Deferred income tax benefit										(395)
Changes in current assets and current liabilities										(6,073)
Changes in deferred charges and credits and other operating activities, net										459
Net cash provided by operating activities										55,461
Cash flows from investing activities:
Capital expenditures										(6,052)
Acquisitions from Valero Energy Corporation										(296,109)
Other investing activities, net										14
Net cash used in investing activities										(302,147)
Cash flows from financing activities:
Proceeds from debt borrowings										200,000
Proceeds from note payable to related party										160,000
Payments of capital lease obligations										(580)
Excess purchase price paid to Valero Energy Corporation over the carrying value of acquired assets										(275,111)
Cash distributions to unitholders and distribution equivalent right payments										(33,095)
Net transfers from Valero Energy Corporation										10,935
Net cash provided by (used in) financing activities										62,149
Net decrease in cash and cash equivalents										(184,537)
Cash and cash equivalents at beginning of period								80,783		236,579		236,579
Cash and cash equivalents at end of period						52,042				52,042		80,783
Common Unitholder Valero [Member]
Partners' Capital [Abstract]
Total partners’ capital														15,895	28,430	[2]	59,685	[1]	58,844	[2]
Costs and expenses:
Less: Net loss attributable to Predecessor								0		0	[1]
Net income attributable to partners								$ 19,699		$ 11,665
Acquisitions (Textual)
Units issued in connection with acquisitions | shares								728,775		1,908,100
General Partner Valero [Member]
Partners' Capital [Abstract]
Total partners’ capital														(6,427)	(5,805)	[2]	(2,854)	[1]	4,617	[2]
Costs and expenses:
Less: Net loss attributable to Predecessor								$ 0		$ 0	[1]
Net income attributable to partners								$ 8,717		$ 2,210
Acquisitions (Textual)
Units issued in connection with acquisitions | shares								14,873		38,941
McKee Terminal Services Business [Member] | Adjustments for Acquisitions of Businesses Under Common Control [Member]
Current assets:
Cash and cash equivalents						0		$ 0		$ 0		0			0		0		0
Receivables from related party															0
Prepaid expenses and other															0
Total current assets															0
Property and equipment, at cost															99,518
Accumulated depreciation															(46,959)
Property and equipment, net															52,559
Deferred charges and other assets, net															0
Total assets															52,559
Current liabilities:
Current portion of capital lease obligations															0
Accounts payable															0
Accrued liabilities															0
Accrued liabilities – related party															0
Taxes other than income taxes															0
Deferred revenue from related party															0
Total current liabilities															0
Debt and capital lease obligations, net of current portion															0
Notes payable to related party															0
Deferred income taxes															0
Other long-term liabilities															0
Partners' Capital [Abstract]
Common unitholders – public (21,515,609 and 21,509,651 units outstanding)															0
Common unitholder – Valero (15,747,377 and 15,018,602 units outstanding)															0
Subordinated unitholder – Valero (28,789,989 and 28,789,989 units outstanding)															0
General partner – Valero (1,347,702 and 1,332,829 units outstanding)															0
Net investment															52,559
Total partners’ capital															52,559
Total liabilities and partners’ capital															52,559
Consolidated Statements of Income
Operating revenues – related party						0				0
Costs and expenses:
Operating expenses						1,686				3,358
General and administrative expenses						63				123
Depreciation expense						1,125				2,254
Total costs and expenses						2,874				5,735
Operating income						(2,874)				(5,735)
Other income, net						0				0
Interest and debt expense, net of capitalized interest						0				0
Income before income taxes						(2,874)				(5,735)
Income tax expense						0				0
Net income						(2,874)				(5,735)
Less: Net loss attributable to Predecessor						(2,874)				(5,735)
Net income attributable to partners						0				0
Cash flows from operating activities:
Net income (loss)						(2,874)				(5,735)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation expense						1,125				2,254
Deferred income tax benefit										0
Changes in current assets and current liabilities										0
Changes in deferred charges and credits and other operating activities, net										0
Net cash provided by operating activities										(3,481)
Cash flows from investing activities:
Capital expenditures										(65)
Acquisitions from Valero Energy Corporation										0
Other investing activities, net										0
Net cash used in investing activities										(65)
Cash flows from financing activities:
Proceeds from debt borrowings										0
Proceeds from note payable to related party										0
Payments of capital lease obligations										0
Excess purchase price paid to Valero Energy Corporation over the carrying value of acquired assets										0
Cash distributions to unitholders and distribution equivalent right payments										0
Net transfers from Valero Energy Corporation										3,546
Net cash provided by (used in) financing activities										3,546
Net decrease in cash and cash equivalents										0
Cash and cash equivalents at beginning of period								0		0		0
Cash and cash equivalents at end of period						0				0		0
Corpus Christi Terminal Services Business [Member] | Adjustments for Acquisitions of Businesses Under Common Control [Member]
Current assets:
Cash and cash equivalents						0				0		0					$ 0		$ 0
Consolidated Statements of Income
Operating revenues – related party						0				0
Costs and expenses:
Operating expenses						6,131				10,891
General and administrative expenses						89				176
Depreciation expense						1,064				1,886
Total costs and expenses						7,284				12,953
Operating income						(7,284)				(12,953)
Other income, net						0				0
Interest and debt expense, net of capitalized interest						0				0
Income before income taxes						(7,284)				(12,953)
Income tax expense						0				0
Net income						(7,284)				(12,953)
Less: Net loss attributable to Predecessor						(7,284)				(12,953)
Net income attributable to partners						0				0
Cash flows from operating activities:
Net income (loss)						(7,284)				(12,953)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation expense						1,064				1,886
Deferred income tax benefit										0
Changes in current assets and current liabilities										0
Changes in deferred charges and credits and other operating activities, net										0
Net cash provided by operating activities										(11,067)
Cash flows from investing activities:
Capital expenditures										(12,174)
Acquisitions from Valero Energy Corporation										0
Other investing activities, net										0
Net cash used in investing activities										(12,174)
Cash flows from financing activities:
Proceeds from debt borrowings										0
Proceeds from note payable to related party										0
Payments of capital lease obligations										0
Excess purchase price paid to Valero Energy Corporation over the carrying value of acquired assets										0
Cash distributions to unitholders and distribution equivalent right payments										0
Net transfers from Valero Energy Corporation										23,241
Net cash provided by (used in) financing activities										23,241
Net decrease in cash and cash equivalents										0
Cash and cash equivalents at beginning of period										0		$ 0
Cash and cash equivalents at end of period						$ 0				0
Majority Shareholder [Member]
Current assets:
Receivables from related party														$ 23,614	$ 18,088
Cash flows from financing activities:
Net transfers from Valero Energy Corporation								1,848		37,722
Majority Shareholder [Member] | McKee Terminal Services Business [Member]
Cash flows from investing activities:
Acquisitions from Valero Energy Corporation								(51,400)
Cash flows from financing activities:
Proceeds from debt borrowings		$ 139,000
Excess purchase price paid to Valero Energy Corporation over the carrying value of acquired assets								$ (152,600)
Acquisitions (Textual)
Effective date of acquisition								Apr. 01, 2016
Number of subsidiaries acquired | subsidiaries		1
Value of consideration transferred for acquisition		$ 240,000
Cash consideration transferred to acquire businesses		204,000
Consideration transferred for acquisition, units issued		36,000						$ 36,000
Payments to acquire business, cash on hand		$ 65,000
Majority Shareholder [Member] | McKee Terminal Services Business [Member] | Common Unitholder Valero [Member]
Acquisitions (Textual)
Units issued in connection with acquisitions | shares		728,775						728,775
Majority Shareholder [Member] | McKee Terminal Services Business [Member] | General Partner Valero [Member]
Acquisitions (Textual)
Units issued in connection with acquisitions | shares		14,873						14,873
Majority Shareholder [Member] | Corpus Christi Terminal Services Business [Member]
Cash flows from financing activities:
Proceeds from note payable to related party			$ 395,000
Acquisitions (Textual)
Effective date of acquisition								Oct. 01, 2015
Value of consideration transferred for acquisition			465,000
Cash consideration transferred to acquire businesses			395,000
Consideration transferred for acquisition, units issued			$ 70,000
Majority Shareholder [Member] | Corpus Christi Terminal Services Business [Member] | Common Unitholder Valero [Member]
Acquisitions (Textual)
Units issued in connection with acquisitions | shares			1,570,513
Majority Shareholder [Member] | Corpus Christi Terminal Services Business [Member] | General Partner Valero [Member]
Acquisitions (Textual)
Units issued in connection with acquisitions | shares			32,051
Majority Shareholder [Member] | Houston and St. Charles Terminal Services Business [Member]
Cash flows from investing activities:
Acquisitions from Valero Energy Corporation										(296,100)
Cash flows from financing activities:
Proceeds from debt borrowings				$ 200,000
Proceeds from note payable to related party				$ 160,000
Excess purchase price paid to Valero Energy Corporation over the carrying value of acquired assets										(275,100)
Acquisitions (Textual)
Effective date of acquisition								Mar. 01, 2015
Number of subsidiaries acquired | subsidiaries				2
Value of consideration transferred for acquisition				$ 671,200
Cash consideration transferred to acquire businesses				571,200
Consideration transferred for acquisition, units issued				100,000						$ 100,000
Payments to acquire business, cash on hand				$ 211,200
Majority Shareholder [Member] | Houston and St. Charles Terminal Services Business [Member] | Common Unitholder Valero [Member]
Acquisitions (Textual)
Units issued in connection with acquisitions | shares				1,908,100						1,908,100.0
Majority Shareholder [Member] | Houston and St. Charles Terminal Services Business [Member] | General Partner Valero [Member]
Acquisitions (Textual)
Units issued in connection with acquisitions | shares				38,941						38,941.000

[1] Financial information has been retrospectively adjusted for the acquisitions of the McKee Terminal Services Business and the Corpus Christi Terminal Services Business from Valero Energy Corporation. See Notes 1 and 3.

[2] Financial information has been retrospectively adjusted for the acquisition of the McKee Terminal Services Business from Valero Energy Corporation. See Notes 1 and 3.

[3] Financial information has been retrospectively adjusted for the acquisition of the McKee Terminal Services Business.

[4] Includes operating expenses – related party of $10,863 thousand and $10,643 thousand for the three months ended June 30, 2016 and 2015, respectively, and $21,796 thousand and $20,478 thousand for the six months ended June 30, 2016 and 2015, respectively.

[5] Includes general and administrative expenses – related party of $2,998 thousand and $2,800 thousand for the three months ended June 30, 2016 and 2015, respectively, and $5,923 thousand and $5,459 thousand for the six months ended June 30, 2016 and 2015, respectively.

[6] Includes interest and debt expense – related party of $1,584 thousand and $578 thousand for the three months ended June 30, 2016 and 2015, respectively, and $3,150 thousand and $768 thousand for the six months ended June 30, 2016 and 2015, respectively.

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Related-Party Transactions (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2016 USD ($) lease_agreements renewal	Jun. 30, 2015 USD ($)	Jun. 30, 2016 USD ($) lease_agreements renewal	Jun. 30, 2015 USD ($)	Apr. 01, 2016 USD ($)	Dec. 31, 2015 USD ($)		Oct. 01, 2015 USD ($)
Receivables from Related Party
Receivables from related party	$ 23,614,000		$ 23,614,000			$ 18,088,000	[1]
Majority Shareholder [Member]
Receivables from Related Party
Trade receivables – related party	29,033,000		29,033,000			26,103,000
Due to related party	(5,419,000)		(5,419,000)			(8,015,000)
Receivables from related party	23,614,000		23,614,000			$ 18,088,000
Operating Leases, Lease Revenue
Minimum rental revenues	56,277,000	$ 31,858,000	104,526,000	$ 47,477,000
Contingent rental revenues	9,224,000	5,666,000	17,561,000	8,982,000
Total lease revenues	65,501,000	$ 37,524,000	122,087,000	$ 56,459,000
Future Minimum Rentals to be Received on Noncancelable Lease Agreements
Remainder of 2016	114,236,000		114,236,000
2017	226,610,000		226,610,000
2018	226,610,000		226,610,000
2019	226,610,000		226,610,000
2020	227,231,000		227,231,000
Thereafter	995,947,000		995,947,000
Total minimum rental payments	$ 2,017,244,000		$ 2,017,244,000
Omnibus Agreement [Member] | Majority Shareholder [Member]
Related Party Agreements and Transactions (Textual)
Annual administrative fee					$ 11,700,000			$ 11,200,000
McKee Terminal Agreement [Member] | Commercial Agreements [Member] | Majority Shareholder [Member]
Related Party Agreements and Transactions (Textual)
Agreement expiration date, initial term			Apr. 01, 2026
Number of renewal options | renewal	1		1
Duration of renewal option			5 years
McKee Terminal Agreement [Member] | Lease Agreements [Member] | Majority Shareholder [Member]
Related Party Agreements and Transactions (Textual)
Agreement expiration date, initial term			Apr. 01, 2026
Number of renewal options | renewal	4		4
Number of lease agreements | lease_agreements	1		1
Duration of renewal option, lease and access agreement			5 years
Base rent for lease agreement	$ 594,000		$ 594,000

[1] Financial information has been retrospectively adjusted for the acquisition of the McKee Terminal Services Business from Valero Energy Corporation. See Notes 1 and 3.

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Property and Equipment (Details) - USD ($) $ in Thousands		Jun. 30, 2016	Dec. 31, 2015
Non-Leased Assets
Property and equipment excluding assets subject to operating lease, at cost		$ 389,199	$ 483,466	[1]
Accumulated depreciation, property and equipment excluding assets subject to operating lease		(124,872)	(165,539)	[1]
Property and equipment excluding assets subject to operating lease, net		264,327	317,927	[1]
Assets Under Operating Leases
Assets under operating leases, at cost	[2]	742,835	626,933	[1]
Accumulated depreciation, assets under operating leases	[2]	(206,341)	(145,019)	[1]
Assets under operating leases, net	[2]	536,494	481,914	[1]
Property and Equipment, Total
Property and equipment, at cost		1,132,034	1,110,399	[1],[3]
Accumulated depreciation		(331,213)	(310,558)	[1],[3]
Property and equipment, net		800,821	799,841	[1],[3]
Capital Leases (Textual)
Assets under capital lease agreements		14,900	14,900
Accumulated amortization on assets under capital lease agreements		14,700	14,100
Pipelines and Related Assets [Member]
Non-Leased Assets
Property and equipment excluding assets subject to operating lease, at cost		239,239	228,586	[1]
Assets Under Operating Leases
Assets under operating leases, at cost	[2]	46,964	46,739	[1]
Property and Equipment, Total
Property and equipment, at cost		286,203	275,325	[1]
Terminals and Related Assets [Member]
Non-Leased Assets
Property and equipment excluding assets subject to operating lease, at cost		111,037	210,276	[1]
Assets Under Operating Leases
Assets under operating leases, at cost	[2]	695,871	580,194	[1]
Property and Equipment, Total
Property and equipment, at cost		806,908	790,470	[1]
Other [Member]
Non-Leased Assets
Property and equipment excluding assets subject to operating lease, at cost		9,479	9,352	[1]
Assets Under Operating Leases
Assets under operating leases, at cost	[2]	0	0	[1]
Property and Equipment, Total
Property and equipment, at cost		9,479	9,352	[1]
Land [Member]
Non-Leased Assets
Property and equipment excluding assets subject to operating lease, at cost		4,672	4,672	[1]
Assets Under Operating Leases
Assets under operating leases, at cost	[2]	0	0	[1]
Property and Equipment, Total
Property and equipment, at cost		4,672	4,672	[1]
Construction-in-Progress [Member]
Non-Leased Assets
Property and equipment excluding assets subject to operating lease, at cost		24,772	30,580	[1]
Assets Under Operating Leases
Assets under operating leases, at cost	[2]	0	0	[1]
Property and Equipment, Total
Property and equipment, at cost		$ 24,772	$ 30,580	[1]

[1] Financial information has been retrospectively adjusted for the acquisition of the McKee Terminal Services Business.

[2] Represents assets owned by us for which we are the lessor (see Note 4). Certain assets acquired in the acquisition of the McKee Terminal Services Business were reflected as assets under operating leases subsequent to the acquisition on April 1, 2016.

[3] Financial information has been retrospectively adjusted for the acquisition of the McKee Terminal Services Business from Valero Energy Corporation. See Notes 1 and 3.

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Debt, Revolving Credit Facility (Details) - USD ($)			6 Months Ended
	Apr. 01, 2016	Mar. 02, 2015	Jun. 30, 2016	Jun. 30, 2015		Dec. 31, 2015
Revolving Credit Facility (Textual)
Borrowings under the Revolver			$ 139,000,000	$ 200,000,000	[1]
Line of Credit [Member] | Revolving Credit Facility [Member]
Revolving Credit Facility (Textual)
Line of credit facility, maximum borrowing capacity			$ 750,000,000
Line of credit facility, expiration date			Nov. 20, 2020
Line of credit facility, higher borrowing capacity option			$ 1,000,000,000
Line of credit facility, interest rate at period end			1.75%
Borrowings under the Revolver	$ 139,000,000	$ 200,000,000
Repayment on the Revolver			$ 0	$ 0
Line of credit facility, amount outstanding			314,000,000			$ 175,000,000
Line of Credit [Member] | Letter of Credit [Member]
Revolving Credit Facility (Textual)
Line of credit facility, maximum borrowing capacity			100,000,000
Line of credit facility, amount outstanding			$ 0

[1] Financial information has been retrospectively adjusted for the acquisitions of the McKee Terminal Services Business and the Corpus Christi Terminal Services Business from Valero Energy Corporation. See Notes 1 and 3.

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Debt, Subordinated Credit Agreements (Details)			6 Months Ended			12 Months Ended
	Oct. 01, 2015 USD ($)	Mar. 01, 2015 USD ($)	Jun. 30, 2016 USD ($)	Jun. 30, 2015 USD ($)		Dec. 31, 2015 USD ($) loan_agreements
Subordinated Credit Agreement (Textual)
Subordinated credit agreements, borrowings			$ 0	$ 160,000,000	[1]
Subordinated credit agreements, amounts outstanding			370,000,000			$ 370,000,000	[2]
Majority Shareholder [Member] | Corpus Christi Terminal Services Business [Member]
Subordinated Credit Agreement (Textual)
Subordinated credit agreements, borrowings	$ 395,000,000
Majority Shareholder [Member] | Houston and St. Charles Terminal Services Business [Member]
Subordinated Credit Agreement (Textual)
Subordinated credit agreements, borrowings		$ 160,000,000
Subordinated Debt [Member] | Majority Shareholder [Member]
Subordinated Credit Agreement (Textual)
Number of subordinated credit agreements entered | loan_agreements						2
Subordinated credit agreements, repayments			0	$ 0
Subordinated credit agreements, amounts outstanding			$ 370,000,000			$ 370,000,000
Subordinated Debt [Member] | Majority Shareholder [Member] | Corpus Christi Terminal Services Business [Member]
Subordinated Credit Agreement (Textual)
Subordinated credit agreements, borrowings						395,000,000
Subordinated credit agreements, maturity date			Oct. 01, 2020
Subordinated credit agreements, rate at period end			1.71%
Subordinated Debt [Member] | Majority Shareholder [Member] | Houston and St. Charles Terminal Services Business [Member]
Subordinated Credit Agreement (Textual)
Subordinated credit agreements, borrowings						$ 160,000,000
Subordinated credit agreements, maturity date			Mar. 01, 2020
Subordinated credit agreements, rate at period end			1.71%

[1] Financial information has been retrospectively adjusted for the acquisitions of the McKee Terminal Services Business and the Corpus Christi Terminal Services Business from Valero Energy Corporation. See Notes 1 and 3.

[2] Financial information has been retrospectively adjusted for the acquisition of the McKee Terminal Services Business from Valero Energy Corporation. See Notes 1 and 3.

XML

Debt, Capitalized Interest (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Capitalized Interest (Textual)
Interest costs incurred, capitalized	$ 3,000	$ 1,000	$ 35,000	$ 6,000

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Operating Leases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Future Minimum Rentals on Operating Leases
Remainder of 2016	$ 4,409		$ 4,409
2017	8,823		8,823
2018	8,780		8,780
2019	8,780		8,780
2020	8,780		8,780
Thereafter	38,707		38,707
Total minimum rental payments	78,279		78,279
Operating Leases (Textual)
Rental expense for operating leases	$ 2,300	$ 1,900	$ 4,600	$ 2,700

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Cash Distributions (Details) - USD ($) $ / shares in Units, $ in Thousands								3 Months Ended		6 Months Ended
	Jul. 21, 2016	May 10, 2016	Feb. 11, 2016	Nov. 10, 2015	Aug. 11, 2015	May 12, 2015	Feb. 12, 2015	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Quarterly Cash Distributions
Total quarterly distribution (per unit)		$ 0.3400	$ 0.3200	$ 0.3075	$ 0.2925	$ 0.2775	$ 0.2660	$ 0.3650	$ 0.2925	$ 0.7050	$ 0.5700
Distributions		$ 25,608	$ 22,711	$ 20,164	$ 18,456	$ 17,266	$ 15,829	$ 28,912	$ 18,456	$ 54,520	$ 35,722
General Partner’s Distribution, Including Incentive Distribution Rights [Member]
Quarterly Cash Distributions
Distributions								4,802	1,053	7,952	1,808
General Partner Valero [Member]
Quarterly Cash Distributions
Distributions								578	369	1,090	714
General Partner IDRs [Member]
Quarterly Cash Distributions
Distributions								4,224	684	6,862	1,094
Limited Partner, Common and Subordinated Units [Member]
Quarterly Cash Distributions
Distributions								24,105	17,400	46,558	33,908
Common Unitholders Public [Member]
Quarterly Cash Distributions
Distributions								7,849	5,045	15,159	9,832
Common Unitholder Valero [Member]
Quarterly Cash Distributions
Distributions								5,747	3,934	11,102	7,666
Subordinated Unitholder Valero [Member]
Quarterly Cash Distributions
Distributions								10,509	8,421	20,297	16,410
Distribution Equivalent Rights [Member]
Quarterly Cash Distributions
Distributions								$ 5	$ 3	$ 10	$ 6
Subsequent Event [Member]
Quarterly Cash Distributions
Total quarterly distribution (per unit)	$ 0.3650
Distributions	$ 28,912

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Net Income Per Limited Partner Unit (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Allocation of net income to determine net income available to limited partners:
Distributions, excluding general partner's IDRs	$ 24,683	$ 17,769	$ 47,648	$ 34,622
General partner’s IDRs	4,224	684	6,862	1,094
DERs	5	3	10	6
Distributions and DERs declared	28,912	18,456	54,520	35,722
Undistributed earnings	20,535	15,206	38,225	20,061
Net income available to limited partners – basic and diluted	$ 49,447	$ 33,662	$ 92,745	$ 55,783
Net income per limited partner unit – basic and diluted:
Weighted-average units outstanding	37,248	30,698	36,884	30,066
Net income per limited partner unit – basic and diluted	$ 0.67	$ 0.54	$ 1.28	$ 0.91
General Partner Valero [Member]
Allocation of net income to determine net income available to limited partners:
Distributions, excluding general partner's IDRs	$ 578	$ 369	$ 1,090	$ 714
General partner’s IDRs	4,224	684	6,862	1,094
Distributions and DERs declared	4,802	1,053	7,952	1,808
Undistributed earnings	411	304	765	401
Net income available to limited partners – basic and diluted	5,213	1,357	8,717	2,209
Limited Partner, Common Units [Member]
Allocation of net income to determine net income available to limited partners:
Distributions, excluding general partner's IDRs	13,596	8,979	26,261	17,498
Distributions and DERs declared	13,596	8,979	26,261	17,498
Undistributed earnings	11,348	7,688	21,034	10,042
Net income available to limited partners – basic and diluted	$ 24,944	$ 16,667	$ 47,295	$ 27,540
Net income per limited partner unit – basic and diluted:
Weighted-average units outstanding	37,248	30,698	36,884	30,066
Net income per limited partner unit – basic and diluted	$ 0.67	$ 0.54	$ 1.28	$ 0.91
Subordinated Unitholder Valero [Member]
Allocation of net income to determine net income available to limited partners:
Distributions, excluding general partner's IDRs	$ 10,509	$ 8,421	$ 20,297	$ 16,410
Distributions and DERs declared	10,509	8,421	20,297	16,410
Undistributed earnings	8,772	7,211	16,418	9,615
Net income available to limited partners – basic and diluted	$ 19,281	$ 15,632	$ 36,715	$ 26,025
Net income per limited partner unit – basic and diluted:
Weighted-average units outstanding	28,790	28,790	28,790	28,790
Net income per limited partner unit – basic and diluted	$ 0.67	$ 0.54	$ 1.28	$ 0.90
Restricted Units [Member]
Allocation of net income to determine net income available to limited partners:
DERs	$ 5	$ 3	$ 10	$ 6
Distributions and DERs declared	5	3	10	6
Undistributed earnings	4	3	8	3
Net income available to limited partners – basic and diluted	$ 9	$ 6	$ 18	$ 9

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Unit Activity (Details) - shares	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Partners' Capital Roll Forward (Units)
Beginning balance	66,651,071	58,760,288
Unit-based compensation	5,958	4,443
Units issued in connection with acquisitions	743,648	1,947,041
Ending balance	67,400,677	60,711,772
Common Unitholders Public [Member]
Partners' Capital Roll Forward (Units)
Beginning balance	21,509,651	17,255,208
Unit-based compensation	5,958	4,443
Ending balance	21,515,609	17,259,651
Common Unitholder Valero [Member]
Partners' Capital Roll Forward (Units)
Beginning balance	15,018,602	11,539,989
Units issued in connection with acquisitions	728,775	1,908,100
Ending balance	15,747,377	13,448,089
Subordinated Unitholder Valero [Member]
Partners' Capital Roll Forward (Units)
Beginning balance	28,789,989	28,789,989
Ending balance	28,789,989	28,789,989
General Partner Valero [Member]
Partners' Capital Roll Forward (Units)
Beginning balance	1,332,829	1,175,102
Units issued in connection with acquisitions	14,873	38,941
Ending balance	1,347,702	1,214,043

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Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands			6 Months Ended
	Apr. 01, 2016	Mar. 01, 2015	Jun. 30, 2016	Jun. 30, 2015
Decrease (increase) in current assets:
Receivables from related party			$ (5,526)	$ (6,817)
Prepaid expenses and other			(449)	20
Increase in current liabilities:
Accounts payable			733	31
Accrued liabilities			214	183
Accrued liabilities – related party			49	183
Taxes other than income taxes			403	139
Deferred revenue from related party			1,134	188
Changes in current assets and current liabilities			(3,442)	(6,073)	[1]
Reconciliation of Net Transfers from/to Valero
Net transfers from Valero per statements of cash flows			1,848	37,722	[1]
Cash Flows Related to Interest and Income Taxes Paid
Interest paid			5,484	1,578
Income taxes paid			496	441
Supplemental Cash Flow Elements (Textual)
Cash consideration paid attributed to the historical carrying value of assets acquired			51,361	296,109	[1]
Cash consideration paid in excess of the carrying value of assets acquired			152,639	275,111	[1]
Noncash capital contributions from Valero Energy Corporation			$ 15,978	$ 7,343
Units issued in connection with acquisitions			743,648	1,947,041
General Partner Valero [Member]
Supplemental Cash Flow Elements (Textual)
Noncash capital contributions from Valero Energy Corporation			$ 470	$ 204
Units issued in connection with acquisitions			14,873	38,941
Common Unitholder Valero [Member]
Supplemental Cash Flow Elements (Textual)
Noncash capital contributions from Valero Energy Corporation			$ 5,407	$ 2,273
Units issued in connection with acquisitions			728,775	1,908,100
Majority Shareholder [Member]
Reconciliation of Net Transfers from/to Valero
Net transfers from Valero per statements of partners’ capital			$ 1,883	$ 35,122
Less: Noncash transfers from Valero			35
Less: Noncash transfers to Valero				(2,600)
Net transfers from Valero per statements of cash flows			1,848	37,722
Supplemental Cash Flow Elements (Textual)
Noncash capital contributions from Valero Energy Corporation			16,000
Majority Shareholder [Member] | McKee Terminal Services Business [Member]
Supplemental Cash Flow Elements (Textual)
Cash consideration paid attributed to the historical carrying value of assets acquired			51,400
Cash consideration transferred to acquire businesses	$ 204,000
Cash consideration paid in excess of the carrying value of assets acquired			152,600
Consideration transferred for acquisition, units issued	$ 36,000		$ 36,000
Majority Shareholder [Member] | McKee Terminal Services Business [Member] | General Partner Valero [Member]
Supplemental Cash Flow Elements (Textual)
Units issued in connection with acquisitions	14,873		14,873
Majority Shareholder [Member] | McKee Terminal Services Business [Member] | Common Unitholder Valero [Member]
Supplemental Cash Flow Elements (Textual)
Units issued in connection with acquisitions	728,775		728,775
Majority Shareholder [Member] | Houston and St. Charles Terminal Services Business [Member]
Supplemental Cash Flow Elements (Textual)
Cash consideration paid attributed to the historical carrying value of assets acquired				296,100
Cash consideration transferred to acquire businesses		$ 571,200
Cash consideration paid in excess of the carrying value of assets acquired				275,100
Noncash capital contributions from Valero Energy Corporation				7,300
Consideration transferred for acquisition, units issued		$ 100,000		$ 100,000
Majority Shareholder [Member] | Houston and St. Charles Terminal Services Business [Member] | General Partner Valero [Member]
Supplemental Cash Flow Elements (Textual)
Units issued in connection with acquisitions		38,941		38,941.000
Majority Shareholder [Member] | Houston and St. Charles Terminal Services Business [Member] | Common Unitholder Valero [Member]
Supplemental Cash Flow Elements (Textual)
Units issued in connection with acquisitions		1,908,100		1,908,100.0

[1] Financial information has been retrospectively adjusted for the acquisitions of the McKee Terminal Services Business and the Corpus Christi Terminal Services Business from Valero Energy Corporation. See Notes 1 and 3.