ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 46-5223743 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Large accelerated filer ý | Accelerated filer ¨ | |
Non-accelerated filer ¨ | Smaller reporting company ¨ | |
Emerging growth company o |
Page | |
June 30, 2017 | December 31, 2016 (1) | |||||||
(in millions of dollars) | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 135.4 | $ | 121.9 | ||||
Accounts receivable – third parties, net | 17.7 | 20.8 | ||||||
Accounts receivable – related parties | 23.0 | 12.1 | ||||||
Allowance oil | 8.3 | 11.7 | ||||||
Prepaid expenses | 4.5 | 6.5 | ||||||
Total current assets | 188.9 | 173.0 | ||||||
Equity method investments | 255.1 | 262.4 | ||||||
Property, plant and equipment, net | 614.3 | 610.6 | ||||||
Cost investments | 39.8 | 39.8 | ||||||
Other assets | 0.6 | 0.6 | ||||||
Total assets | $ | 1,098.7 | $ | 1,086.4 | ||||
LIABILITIES | ||||||||
Current liabilities | ||||||||
Accounts payable – third parties | $ | 3.6 | $ | 4.1 | ||||
Accounts payable – related parties | 11.4 | 5.4 | ||||||
Deferred revenue – third parties | 7.2 | 6.0 | ||||||
Deferred revenue – related parties | 15.3 | 7.9 | ||||||
Accrued liabilities – third parties | 13.5 | 6.9 | ||||||
Accrued liabilities – related parties | 6.2 | 5.1 | ||||||
Total current liabilities | 57.2 | 35.4 | ||||||
Noncurrent liabilities | ||||||||
Debt payable – related party | 1,265.4 | 686.0 | ||||||
Lease liability | 24.6 | 24.9 | ||||||
Asset retirement obligations | 1.4 | 1.4 | ||||||
Other unearned income | 2.6 | 2.1 | ||||||
Total noncurrent liabilities | 1,294.0 | 714.4 | ||||||
Total liabilities | 1,351.2 | 749.8 | ||||||
Commitments and Contingencies (Note 11) | ||||||||
EQUITY | ||||||||
Common unitholders – public (88,462,233 and 88,367,308 units issued and outstanding as of June 30, 2017 and December 31, 2016) | 2,493.2 | 2,485.7 | ||||||
Common unitholder – SPLC (88,950,136 and 21,475,068 units issued and outstanding as of June 30, 2017 and December 31, 2016) | (509.1 | ) | (124.1 | ) | ||||
Subordinated unitholder – SPLC (zero and 67,475,068 units issued and outstanding as of June 30, 2017 and December 31, 2016) | — | (389.6 | ) | |||||
General partner – SPLC (3,620,661 and 3,618,723 units issued and outstanding as of June 30, 2017 and December 31, 2016) | (2,257.5 | ) | (1,873.7 | ) | ||||
Total partners' capital | (273.4 | ) | 98.3 | |||||
Noncontrolling interest | 20.9 | 21.6 | ||||||
Net parent investment | — | 216.7 | ||||||
Total equity | (252.5 | ) | 336.6 | |||||
Total liabilities and equity | $ | 1,098.7 | $ | 1,086.4 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2017 (1) | 2016 (2) | 2017 (1) | 2016 (2) | |||||||||||||
(in millions of dollars, except per unit data) | ||||||||||||||||
Revenue | ||||||||||||||||
Third parties | $ | 55.3 | $ | 60.8 | $ | 110.8 | $ | 121.1 | ||||||||
Related parties | 31.5 | 26.0 | 60.4 | 57.9 | ||||||||||||
Total revenue | 86.8 | 86.8 | 171.2 | 179.0 | ||||||||||||
Costs and expenses | ||||||||||||||||
Operations and maintenance – third parties | 22.9 | 14.9 | 38.5 | 27.6 | ||||||||||||
Operations and maintenance – related parties | 7.1 | 7.4 | 18.2 | 15.1 | ||||||||||||
General and administrative – third parties | 2.8 | 2.0 | 4.6 | 4.2 | ||||||||||||
General and administrative – related parties | 8.2 | 7.6 | 16.6 | 14.9 | ||||||||||||
Depreciation, amortization and accretion | 9.6 | 8.9 | 19.1 | 18.0 | ||||||||||||
Property and other taxes | 3.4 | 3.3 | 7.6 | 7.7 | ||||||||||||
Total costs and expenses | 54.0 | 44.1 | 104.6 | 87.5 | ||||||||||||
Operating income | 32.8 | 42.7 | 66.6 | 91.5 | ||||||||||||
Income from equity investments | 37.2 | 25.6 | 75.9 | 48.8 | ||||||||||||
Dividend income from cost investments | 6.2 | 4.6 | 13.5 | 7.4 | ||||||||||||
Investment and dividend income | 43.4 | 30.2 | 89.4 | 56.2 | ||||||||||||
Interest expense, net | 7.5 | 2.0 | 12.3 | 5.0 | ||||||||||||
Income before income taxes | 68.7 | 70.9 | 143.7 | 142.7 | ||||||||||||
Income tax expense | — | — | — | — | ||||||||||||
Net income | 68.7 | 70.9 | 143.7 | 142.7 | ||||||||||||
Less: Net income attributable to Parent | 1.0 | 4.6 | 3.0 | 8.4 | ||||||||||||
Less: Net income attributable to noncontrolling interests | 2.2 | 2.5 | 4.4 | 15.2 | ||||||||||||
Net income attributable to the Partnership | $ | 65.5 | $ | 63.8 | $ | 136.3 | $ | 119.1 | ||||||||
General partner's interest in net income attributable to the Partnership | $ | 14.3 | $ | 5.0 | $ | 26.4 | $ | 8.1 | ||||||||
Limited Partners' interest in net income attributable to the Partnership | $ | 51.2 | $ | 58.8 | $ | 109.9 | $ | 111.0 | ||||||||
Net income per Limited Partner Unit - Basic and Diluted: | ||||||||||||||||
Common | $ | 0.29 | $ | 0.35 | $ | 0.62 | $ | 0.71 | ||||||||
Subordinated | $ | — | $ | 0.34 | $ | — | $ | 0.66 | ||||||||
Distributions per Limited Partner Unit | $ | 0.3041 | $ | 0.2500 | $ | 0.5951 | $ | 0.4850 | ||||||||
Weighted average Limited Partner Units outstanding - Basic and Diluted (in millions): | ||||||||||||||||
Common units – public | 88.4 | 81.1 | 88.4 | 72.3 | ||||||||||||
Common units – SPLC | 89.0 | 21.5 | 88.9 | 21.5 | ||||||||||||
Subordinated units – SPLC | — | 67.5 | — | 67.5 |
Six Months Ended June 30, | ||||||||
2017 (1) | 2016 (2) | |||||||
(in millions of dollars) | ||||||||
Cash flows from operating activities | ||||||||
Net income | $ | 143.7 | $ | 142.7 | ||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
Depreciation, amortization and accretion | 19.1 | 18.0 | ||||||
Non-cash interest expense | 0.1 | 0.1 | ||||||
Allowance oil reduction to net realizable value | 0.3 | — | ||||||
Undistributed equity earnings | (1.5 | ) | 1.0 | |||||
Changes in operating assets and liabilities | ||||||||
Accounts receivable | (14.2 | ) | 2.9 | |||||
Allowance oil | 0.7 | 0.4 | ||||||
Prepaid expenses | 1.8 | 4.5 | ||||||
Accounts payable | 5.2 | (4.5 | ) | |||||
Deferred revenue | 10.4 | (1.7 | ) | |||||
Accrued liabilities | 9.7 | 4.1 | ||||||
Net cash provided by operating activities | 175.3 | 167.5 | ||||||
Cash flows from investing activities | ||||||||
Capital expenditures | (20.9 | ) | (19.7 | ) | ||||
Acquisitions | (210.6 | ) | (93.7 | ) | ||||
Purchase price adjustment | 0.4 | — | ||||||
Return of investment | 8.4 | 8.0 | ||||||
April 2017 Divestiture | 0.8 | — | ||||||
Net cash used in investing activities | (221.9 | ) | (105.4 | ) | ||||
Cash flows from financing activities | ||||||||
Net proceeds from public offerings | 2.9 | 818.1 | ||||||
Borrowing under credit facility | 580.0 | 296.7 | ||||||
Contributions from general partner | 0.1 | 9.8 | ||||||
Repayment of credit facilities | — | (410.0 | ) | |||||
Capital distributions to general partner | (419.4 | ) | (599.2 | ) | ||||
Distributions to noncontrolling interest | (6.6 | ) | (14.4 | ) | ||||
Distributions to unitholders and general partner | (122.2 | ) | (77.0 | ) | ||||
Net distributions to Parent | (6.3 | ) | (10.9 | ) | ||||
Other contributions from Parent | 12.4 | 0.4 | ||||||
Proceeds from April 2017 Divestiture | 20.2 | — | ||||||
Capital lease payments | (0.3 | ) | — | |||||
Credit facility issuance costs | (0.7 | ) | — | |||||
Net cash provided by financing activities | 60.1 | 13.5 | ||||||
Net increase in cash and cash equivalents | 13.5 | 75.6 | ||||||
Cash and cash equivalents at beginning of the period | 121.9 | 93.0 | ||||||
Cash and cash equivalents at end of the period | $ | 135.4 | $ | 168.6 | ||||
Supplemental cash flow information | ||||||||
Non-cash investing and financing transactions | ||||||||
Change in accrued capital expenditures | 2.7 | (4.4 | ) | |||||
Other non-cash contributions from Parent | 1.1 | 0.1 | ||||||
Other non-cash capital distributions to general partner | — | (7.1 | ) | |||||
Other non-cash contribution from general partner | — | 7.1 | ||||||
Distribution of working capital to Parent | (2.8 | ) | — |
Partnership | |||||||||||||||||||||||||||||
(in millions of dollars) | Common Unitholders Public | Common Unitholder SPLC | Subordinated Unitholder SPLC | General Partner SPLC | Non- controlling Interest | Net Parent Investment (1) | Total (1) | ||||||||||||||||||||||
Balance as of December 31, 2016 | $ | 2,485.7 | 1,637.5 | $ | (124.1 | ) | $ | (389.6 | ) | $ | (1,873.7 | ) | $ | 21.6 | $ | 216.7 | $ | 336.6 | |||||||||||
Net income | 54.8 | 55.1 | — | 26.4 | 4.4 | 3.0 | 143.7 | ||||||||||||||||||||||
Other contributions from Parent | — | — | — | 11.9 | — | — | 11.9 | ||||||||||||||||||||||
Net proceeds from public offering | 2.9 | — | — | 0.1 | — | — | 3.0 | ||||||||||||||||||||||
Distributions to unitholders and general partner | (50.2 | ) | (31.8 | ) | (18.7 | ) | (21.5 | ) | — | — | (122.2 | ) | |||||||||||||||||
Distribution to noncontrolling interest | — | — | — | — | (6.6 | ) | — | (6.6 | ) | ||||||||||||||||||||
Proceeds from April 2017 divestiture | — | — | — | 18.7 | 1.5 | — | 20.2 | ||||||||||||||||||||||
Expiration of subordinated period | — | (408.3 | ) | 408.3 | — | — | — | — | |||||||||||||||||||||
May 2017 Acquisition | — | — | — | (419.4 | ) | — | (210.6 | ) | (630.0 | ) | |||||||||||||||||||
Net assets not contributed to the Partnership | — | — | — | — | — | (9.1 | ) | (9.1 | ) | ||||||||||||||||||||
Balance as of June 30, 2017 | $ | 2,493.2 | $ | (509.1 | ) | $ | — | $ | (2,257.5 | ) | $ | 20.9 | $ | — | $ | (252.5 | ) |
SHLX Ownership | Shell's Retained Ownership | ||||
Pecten | 100.0 | % | — | ||
Sand Dollar | 100.0 | % | — | ||
Zydeco Pipeline Company LLC (“Zydeco”) | 92.5 | % | 7.5 | % | |
Bengal Pipeline Company LLC (“Bengal”) | 50.0 | % | — | ||
Odyssey Pipeline LLC (“Odyssey”) | 49.0 | % | 22.0 | % | |
Mars Oil Pipeline Company LLC (“Mars”) | 48.6 | % | 22.9 | % | |
Poseidon Oil Pipeline Company LLC (“Poseidon”) | 36.0 | % | — | ||
Proteus Oil Pipeline Company, LLC (“Proteus”) | 10.0 | % | — | ||
Endymion Oil Pipeline Company, LLC (“Endymion”) | 10.0 | % | — | ||
Colonial Pipeline Company (“Colonial”) | 6.0 | % | 10.12 | % | |
Explorer Pipeline Company (“Explorer”) | 2.62 | % | 35.97 | % | |
Cleopatra Gas Gathering Company, LLC (“Cleopatra”) | 1.0 | % | — |
Delta | $ | 50.0 | |
Na Kika | 26.0 | ||
Refinery Gas Pipeline | 134.6 | ||
May 2017 Acquisition | $ | 210.6 |
December 31, 2016 | ||||||||||||
Shell Midstream Partners, L.P. (1) | Delta, Na Kika and Refinery Gas Pipeline Operations (2) | Consolidated Results | ||||||||||
ASSETS | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | $ | 121.9 | $ | — | $ | 121.9 | ||||||
Accounts receivable – third parties, net | 18.4 | 2.4 | 20.8 | |||||||||
Accounts receivable – related parties | 10.1 | 2.0 | 12.1 | |||||||||
Allowance oil | 9.0 | 2.7 | 11.7 | |||||||||
Prepaid expenses | 6.0 | 0.5 | 6.5 | |||||||||
Total current assets | 165.4 | 7.6 | 173.0 | |||||||||
Equity method investments | 262.4 | — | 262.4 | |||||||||
Property, plant and equipment, net | 398.0 | 212.6 | 610.6 | |||||||||
Cost investments | 39.8 | — | 39.8 | |||||||||
Other assets | — | 0.6 | 0.6 | |||||||||
Total assets | $ | 865.6 | $ | 220.8 | $ | 1,086.4 | ||||||
LIABILITIES | ||||||||||||
Current liabilities | ||||||||||||
Accounts payable – third parties | $ | 1.5 | $ | 2.6 | $ | 4.1 | ||||||
Accounts payable – related parties | 5.2 | 0.2 | 5.4 | |||||||||
Deferred revenue – third parties | 6.0 | — | 6.0 | |||||||||
Deferred revenue – related parties | 7.9 | — | 7.9 | |||||||||
Accrued liabilities – third parties | 5.6 | 1.3 | 6.9 | |||||||||
Accrued liabilities – related parties | 5.1 | — | 5.1 | |||||||||
Total current liabilities | 31.3 | 4.1 | 35.4 | |||||||||
Noncurrent liabilities | ||||||||||||
Debt payable – related party | 686.0 | — | 686.0 | |||||||||
Lease liability – related party | 24.9 | — | 24.9 | |||||||||
Asset retirement obligations | 1.4 | — | 1.4 | |||||||||
Other unearned income | 2.1 | — | 2.1 | |||||||||
Total noncurrent liabilities | 714.4 | — | 714.4 | |||||||||
Total liabilities | 745.7 | 4.1 | 749.8 | |||||||||
Commitments and Contingencies (Note 11) | ||||||||||||
EQUITY | ||||||||||||
Common unitholders – public | 2,485.7 | — | 2,485.7 | |||||||||
Common unitholder – SPLC | (124.1 | ) | — | (124.1 | ) | |||||||
Subordinated unitholder | (389.6 | ) | — | (389.6 | ) | |||||||
General partner – SPLC | (1,873.7 | ) | — | (1,873.7 | ) | |||||||
Total partners' capital | 98.3 | — | 98.3 | |||||||||
Noncontrolling interest | 21.6 | — | 21.6 | |||||||||
Net parent investment | — | 216.7 | 216.7 | |||||||||
Total equity | 119.9 | 216.7 | 336.6 | |||||||||
Total liabilities and equity | $ | 865.6 | $ | 220.8 | $ | 1,086.4 |
Three Months Ended June 30, 2016 | ||||||||||||
Shell Midstream Partners, L.P. (1) | Delta, Na Kika and Refinery Gas Pipeline Operations (2) | Consolidated Results | ||||||||||
Revenue | ||||||||||||
Third parties | $ | 52.4 | $ | 8.4 | $ | 60.8 | ||||||
Related parties | 18.7 | 7.3 | 26.0 | |||||||||
Total revenue | 71.1 | 15.7 | 86.8 | |||||||||
Costs and expenses | ||||||||||||
Operations and maintenance – third parties | 12.3 | 2.6 | 14.9 | |||||||||
Operations and maintenance – related parties | 5.2 | 2.2 | 7.4 | |||||||||
General and administrative – third parties | 1.9 | 0.1 | 2.0 | |||||||||
General and administrative – related parties | 5.9 | 1.7 | 7.6 | |||||||||
Depreciation, amortization and accretion | 5.8 | 3.1 | 8.9 | |||||||||
Property and other taxes | 1.9 | 1.4 | 3.3 | |||||||||
Total costs and expenses | 33.0 | 11.1 | 44.1 | |||||||||
Operating income | 38.1 | 4.6 | 42.7 | |||||||||
Income from equity investments | 25.6 | — | 25.6 | |||||||||
Dividend income from cost investments | 4.6 | — | 4.6 | |||||||||
Investment and dividend income | 30.2 | — | 30.2 | |||||||||
Interest expense, net | 2.0 | — | 2.0 | |||||||||
Income before income taxes | 66.3 | 4.6 | 70.9 | |||||||||
Income tax expense | — | — | — | |||||||||
Net income | 66.3 | 4.6 | 70.9 | |||||||||
Less: Net income attributable to Parent | — | 4.6 | 4.6 | |||||||||
Less: Net income attributable to noncontrolling interests | 2.5 | — | 2.5 | |||||||||
Net income attributable to the Partnership | $ | 63.8 | $ | — | $ | 63.8 |
Six Months Ended June 30, 2016 | ||||||||||||
Shell Midstream Partners, L.P. (1) | Delta, Na Kika and Refinery Gas Pipeline Operations (2) | Consolidated Results | ||||||||||
Revenue | ||||||||||||
Third parties | $ | 103.7 | $ | 17.4 | $ | 121.1 | ||||||
Related parties | 44.1 | 13.8 | 57.9 | |||||||||
Total revenue | 147.8 | 31.2 | 179.0 | |||||||||
Costs and expenses | ||||||||||||
Operations and maintenance – third parties | 21.7 | 5.9 | 27.6 | |||||||||
Operations and maintenance – related parties | 10.6 | 4.5 | 15.1 | |||||||||
General and administrative – third parties | 4.0 | 0.2 | 4.2 | |||||||||
General and administrative – related parties | 11.6 | 3.3 | 14.9 | |||||||||
Depreciation, amortization and accretion | 11.7 | 6.3 | 18.0 | |||||||||
Property and other taxes | 5.1 | 2.6 | 7.7 | |||||||||
Total costs and expenses | 64.7 | 22.8 | 87.5 | |||||||||
Operating income | 83.1 | 8.4 | 91.5 | |||||||||
Income from equity investments | 48.8 | — | 48.8 | |||||||||
Dividend income from cost investments | 7.4 | — | 7.4 | |||||||||
Investment and dividend income | 56.2 | — | 56.2 | |||||||||
Interest expense, net | 5.0 | — | 5.0 | |||||||||
Income before income taxes | 134.3 | 8.4 | 142.7 | |||||||||
Income tax expense | — | — | — | |||||||||
Net income | 134.3 | 8.4 | 142.7 | |||||||||
Less: Net income attributable to Parent | — | 8.4 | 8.4 | |||||||||
Less: Net income attributable to noncontrolling interests | 15.2 | — | 15.2 | |||||||||
Net income attributable to the Partnership | $ | 119.1 | $ | — | $ | 119.1 |
Six Months Ended June 30, 2016 | ||||||||||||
Shell Midstream Partners, L.P. (1) | Delta, Na Kika and Refinery Gas Pipeline Operations (2) | Consolidated Results | ||||||||||
Cash flows from operating activities | ||||||||||||
Net income | $ | 134.3 | $ | 8.4 | $ | 142.7 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||
Depreciation, amortization and accretion | 11.7 | 6.3 | 18.0 | |||||||||
Non-cash interest expense | 0.1 | — | 0.1 | |||||||||
Undistributed equity earnings | 1.0 | — | 1.0 | |||||||||
Changes in operating assets and liabilities | ||||||||||||
Accounts receivable | 4.3 | (1.4 | ) | 2.9 | ||||||||
Allowance oil | (0.8 | ) | 1.2 | 0.4 | ||||||||
Prepaid expenses | 3.2 | 1.3 | 4.5 | |||||||||
Accounts payable | (3.5 | ) | (1.0 | ) | (4.5 | ) | ||||||
Deferred revenue | (1.7 | ) | — | (1.7 | ) | |||||||
Accrued liabilities | 2.1 | 2.0 | 4.1 | |||||||||
Net cash provided by operating activities | 150.7 | 16.8 | 167.5 | |||||||||
Cash flows from investing activities | ||||||||||||
Capital expenditures | (13.8 | ) | (5.9 | ) | (19.7 | ) | ||||||
Acquisitions | (93.7 | ) | — | (93.7 | ) | |||||||
Return of investment | 8.0 | — | 8.0 | |||||||||
Net cash used in investing activities | (99.5 | ) | (5.9 | ) | (105.4 | ) | ||||||
Cash flows from financing activities | ||||||||||||
Net proceeds from public offerings | 818.1 | — | 818.1 | |||||||||
Borrowing under credit facility | 296.7 | — | 296.7 | |||||||||
Contributions from general partner | 9.8 | — | 9.8 | |||||||||
Repayment of credit facilities | (410.0 | ) | — | (410.0 | ) | |||||||
Capital distributions to general partner | (599.2 | ) | — | (599.2 | ) | |||||||
Distributions to noncontrolling interest | (14.4 | ) | — | (14.4 | ) | |||||||
Distributions to unitholders and general partner | (77.0 | ) | — | (77.0 | ) | |||||||
Net distributions to Parent | — | (10.9 | ) | (10.9 | ) | |||||||
Other contribution from Parent | 0.4 | — | 0.4 | |||||||||
Net cash provided by / (used in) financing activities | 24.4 | (10.9 | ) | 13.5 | ||||||||
Net increase in cash and cash equivalents | 75.6 | — | 75.6 | |||||||||
Cash and cash equivalents at beginning of the period | 93.0 | — | 93.0 | |||||||||
Cash and cash equivalents at end of the period | $ | 168.6 | $ | — | $ | 168.6 | ||||||
Supplemental Cash Flow Information | ||||||||||||
Non-cash investing and financing transactions | ||||||||||||
Change in accrued capital expenditures | $ | (0.6 | ) | $ | (3.8 | ) | $ | (4.4 | ) | |||
Other non-cash contributions from Parent | 0.1 | — | 0.1 | |||||||||
Other non-cash capital distributions to general partner | (7.1 | ) | — | (7.1 | ) | |||||||
Other non-cash contribution from general partner | 7.1 | — | 7.1 |
Cost investment (1) | $ | 5.2 | |
Equity method investments(2) | 1.5 | ||
Partner's capital (3) | 87.0 | ||
May 2016 Acquisition | $ | 93.7 |
(1) | Book value of 3.0% additional interest in Colonial contributed by SPLC. |
(2) | Book value of 1.0% additional interest in Bengal contributed by SPLC. |
(3) | Book value of 30.0% additional interest in Zydeco from SPLC’s noncontrolling interest. |
• | our payment of an annual general and administrative fee of $8.5 million for the provision of certain services by SPLC; |
• | our obligation to reimburse SPLC for certain direct or allocated costs and expenses incurred by SPLC on our behalf; |
• | our obligation to reimburse SPLC for all expenses incurred by SPLC as a result of us becoming and continuing as a publicly traded entity; we will reimburse our general partner for these expenses to the extent the fees relating to such services are not included in the general and administrative fee; and |
• | the granting of a license from Shell to us with respect to using certain Shell trademarks and trade names. |
June 30, 2017 | December 31, 2016 | |||||||
Accounts receivable | $ | 23.0 | $ | 12.1 | ||||
Prepaid expenses | 2.3 | 3.2 | ||||||
Accounts payable (1) | 11.4 | 5.4 | ||||||
Deferred revenue | 15.3 | 7.9 | ||||||
Accrued liabilities (2) | 6.2 | 5.1 | ||||||
Debt payable (3) | 1,265.4 | 686.0 | ||||||
Lease liability (4) | — | 24.9 |
Total | Less than 1 year | Years 2 to 3 | Years 4 to 5 | More than 5 years | ||||||||||||||||
Operating leases | $ | 455.3 | $ | 46.3 | $ | 92.6 | $ | 92.6 | $ | 223.8 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Operations and maintenance - related parties | $ | 7.1 | $ | 7.4 | $ | 18.2 | $ | 15.1 | ||||||||
General and administrative - related parties (1) | 8.2 | 7.6 | 16.6 | 14.9 |
June 30, 2017 | December 31, 2016 | |||||||||||
Ownership | Investment Amount | Ownership | Investment Amount | |||||||||
Bengal | 50.0% | $ | 77.7 | 50.0% | $ | 76.1 | ||||||
Odyssey | 49.0% | 3.0 | 49.0% | 3.0 | ||||||||
Mars | 48.6% | 129.4 | 48.6% | 130.2 | ||||||||
Poseidon | 36.0% | 7.1 | 36.0% | 13.2 | ||||||||
Proteus | 10.0% | 17.9 | 10.0% | 19.1 | ||||||||
Endymion | 10.0% | 20.0 | 10.0% | 20.8 | ||||||||
$ | 255.1 | $ | 262.4 |
Three Months Ended June 30, 2017 | For the Six Months Ended June 30, 2017 | |||||||||||||||||||||||
Distributions Received | Income from Equity Investments | Purchase Price Adjustment | Distributions received | Income from Equity investments | Purchase Price Adjustment | |||||||||||||||||||
Bengal | $ | 4.6 | $ | 5.4 | $ | — | $ | 9.3 | $ | 10.7 | $ | — | ||||||||||||
Odyssey | 4.5 | 4.4 | — | 8.7 | 8.7 | — | ||||||||||||||||||
Mars | 19.0 | 20.2 | — | 42.3 | 41.7 | — | ||||||||||||||||||
Poseidon | 9.2 | 6.4 | — | 19.3 | 13.2 | — | ||||||||||||||||||
Proteus | 0.8 | 0.4 | — | 1.7 | 0.8 | 0.3 | ||||||||||||||||||
Endymion | 0.8 | 0.4 | — | 1.5 | 0.8 | 0.1 | ||||||||||||||||||
$ | 38.9 | $ | 37.2 | — | $ | 82.8 | $ | 75.9 | $ | 0.4 |
Three Months Ended June 30, 2016 | Six Months Ended June 30, 2016 | |||||||||||||||
Distributions Received | Income from Equity Investments | Distributions Received | Income from Equity Investments | |||||||||||||
Bengal | $ | 7.1 | $ | 5.3 | $ | 13.4 | $ | 10.7 | ||||||||
Mars | 13.1 | 12.2 | 23.0 | 23.1 | ||||||||||||
Poseidon | 11.3 | 8.1 | 21.4 | 15.0 | ||||||||||||
$ | 31.5 | $ | 25.6 | $ | 57.8 | $ | 48.8 |
Three Months Ended June 30, 2017 | ||||||||||||||||
Total Revenues | Total Operating Expenses | Operating Income | Net Income | |||||||||||||
Statements of Income | ||||||||||||||||
Bengal | $ | 18.1 | $ | 7.1 | $ | 11.0 | $ | 10.9 | ||||||||
Odyssey | 9.9 | 1.0 | 8.9 | 8.9 | ||||||||||||
Mars | 66.4 | 24.3 | 42.1 | 42.1 | ||||||||||||
Poseidon | 28.5 | 8.5 | 20.0 | 18.6 | ||||||||||||
Proteus | 7.3 | 3.0 | 4.3 | 4.0 | ||||||||||||
Endymion | 8.5 | 3.2 | 5.3 | 4.8 |
Six Months Ended June 30, 2017 | ||||||||||||||||
Total Revenues | Total Operating Expenses | Operating Income | Net Income | |||||||||||||
Statements of Income | ||||||||||||||||
Bengal | $ | 35.9 | $ | 14.3 | $ | 21.6 | $ | 21.5 | ||||||||
Odyssey | 19.7 | 2.0 | 17.7 | 17.7 | ||||||||||||
Mars | 131.3 | 44.2 | 87.1 | 87.1 | ||||||||||||
Poseidon | 57.4 | 16.6 | 40.8 | 38.0 | ||||||||||||
Proteus | 15.2 | 6.1 | 9.1 | 8.5 | ||||||||||||
Endymion | 17.1 | 6.3 | 10.8 | 10.0 |
Three Months Ended June 30, 2016 | ||||||||||||||||
Total Revenues | Total Operating Expenses | Operating Income | Net Income | |||||||||||||
Statements of Income | ||||||||||||||||
Bengal | $ | 17.6 | $ | 7.1 | $ | 10.5 | $ | 10.4 | ||||||||
Mars | 64.2 | 20.5 | 43.7 | 43.7 | ||||||||||||
Poseidon | 32.0 | 7.7 | 24.3 | 23.0 |
Six Months Ended June 30, 2016 | ||||||||||||||||
Total Revenues | Total Operating Expenses | Operating Income | Net Income | |||||||||||||
Statements of Income | ||||||||||||||||
Bengal | $ | 35.0 | $ | 13.5 | $ | 21.5 | $ | 21.4 | ||||||||
Mars | 121.5 | 39.0 | 82.5 | 82.5 | ||||||||||||
Poseidon | 59.4 | 14.3 | 45.1 | 42.7 |
Depreciable Life | June 30, 2017 | December 31, 2016 | |||||||||
Land | — | $ | 2.0 | $ | 2.0 | ||||||
Building and improvements | 10 - 40 years | 30.3 | 29.6 | ||||||||
Pipeline and equipment (1) | 10 - 30 years | 899.9 | 895.7 | ||||||||
Other | 5 - 25 years | 17.5 | 16.9 | ||||||||
949.7 | 944.2 | ||||||||||
Accumulated depreciation and amortization (2) | (372.6 | ) | (354.8 | ) | |||||||
577.1 | 589.4 | ||||||||||
Construction in progress | 37.2 | 21.2 | |||||||||
Property, plant and equipment, net | $ | 614.3 | $ | 610.6 |
June 30, 2017 | December 31, 2016 | |||||||
Transportation, project engineering | $ | 6.0 | $ | 4.2 | ||||
Property taxes | 4.5 | 0.6 | ||||||
Professional fees | 0.5 | 0.3 | ||||||
Other accrued liabilities | 2.5 | 1.8 | ||||||
Accrued liabilities - third parties | $ | 13.5 | $ | 6.9 |
June 30, 2017 | December 31, 2016 | |||||||
Five Year Fixed Facility, fixed rate, due March 1, 2022 (1) | $ | 506.9 | $ | — | ||||
Five Year Revolver, variable rate, due October 31, 2019 (2) | 760.0 | 686.9 | ||||||
Zydeco Revolver, variable rate, due August 6, 2019 (3) | — | — | ||||||
364-Day Revolver, variable rate, expired March 1, 2017 (4) | — | — | ||||||
Unamortized debt issuance costs | (1.5 | ) | (0.9 | ) | ||||
Debt payable – related party | $ | 1,265.4 | $ | 686.0 |
(1) | As of June 30, 2017, availability under the $600.0 million Five Year Fixed Facility was $93.1 million. |
• | agreed to restrict additional indebtedness not loaned by STCW; |
• | to give the applicable facility pari passu ranking with any new indebtedness; and |
• | to refrain from securing our assets except as agreed with STCW (Five Year Fixed Facility only). |
Public | SPLC | SPLC | General | ||||||||||||
(in units) | Common | Common | Subordinated | Partner | Total | ||||||||||
Balance as of December 31, 2016 | 88,367,308 | 21,475,068 | 67,475,068 | 3,618,723 | 180,936,167 | ||||||||||
Expiration of subordination period | — | 67,475,068 | (67,475,068 | ) | — | — | |||||||||
Units issued in connection with ATM program | 94,925 | — | — | 1,938 | 96,863 | ||||||||||
Balance as of June 30, 2017 | 88,462,233 | 88,950,136 | — | 3,620,661 | 181,033,030 |
Date Paid or | Public | SPLC | SPLC | General Partner | Distributions per Limited Partner Unit | |||||||||||||||||||||||||
to be Paid | Three Months Ended | Common | Common | Subordinated | IDR's | 2% | Total | |||||||||||||||||||||||
(in millions, except per unit amounts) | ||||||||||||||||||||||||||||||
February 11, 2016 | December 31, 2015 | $ | 13.9 | $ | 4.7 | $ | 14.8 | $ | 1.2 | $ | 0.7 | $ | 35.3 | $ | 0.22000 | |||||||||||||||
May 12, 2016 | March 31, 2016 | 17.9 | 5.1 | 15.8 | 2.0 | 0.9 | 41.7 | 0.23500 | ||||||||||||||||||||||
August 12, 2016 | June 30, 2016 | 22.0 | 5.4 | 16.9 | 3.7 | 1.0 | 49.0 | 0.25000 | ||||||||||||||||||||||
November 14, 2016 | September 30, 2016 | 23.3 | 5.7 | 17.8 | 6.0 | 1.1 | 53.9 | 0.26375 | ||||||||||||||||||||||
February 14, 2017 | December 31, 2016 | 24.5 | 5.9 | 18.7 | 8.3 | 1.2 | 58.6 | 0.27700 | ||||||||||||||||||||||
May 12, 2017 | March 31, 2017 | 25.7 | 25.9 | — | 10.7 | 1.3 | 63.6 | 0.29100 | ||||||||||||||||||||||
August 14, 2017 | June 30, 2017 (1) | 26.9 | 27.0 | — | 12.9 | 1.4 | 68.2 | 0.30410 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Net income | $ | 68.7 | $ | 70.9 | $ | 143.7 | $ | 142.7 | ||||||||
Less: | ||||||||||||||||
Net income attributable to Parent | 1.0 | 4.6 | 3.0 | 8.4 | ||||||||||||
Net income attributable to noncontrolling interests | 2.2 | 2.5 | 4.4 | 15.2 | ||||||||||||
Net income attributable to the Partnership | 65.5 | 63.8 | 136.3 | 119.1 | ||||||||||||
Less: | ||||||||||||||||
General Partner's distribution declared | 14.3 | 4.7 | 26.3 | 7.6 | ||||||||||||
Limited Partners' distribution declared on common units | 53.9 | 27.4 | 105.5 | 50.4 | ||||||||||||
Limited Partners' distribution declared on subordinated units | — | 16.9 | — | 32.7 | ||||||||||||
Income (less than) / in excess of distributions | $ | (2.7 | ) | $ | 14.8 | $ | 4.5 | $ | 28.4 |
Three Months Ended June 30, 2017 | ||||||||||||
General Partner | Limited Partners' Common Units | Total | ||||||||||
(in millions of dollars, except per unit data) | ||||||||||||
Distributions declared | $ | 14.3 | $ | 53.9 | $ | 68.2 | ||||||
Distributions in excess of income | — | (2.7 | ) | (2.7 | ) | |||||||
Net income attributable to the Partnership | $ | 14.3 | $ | 51.2 | $ | 65.5 | ||||||
Weighted average units outstanding (in millions) (1): | ||||||||||||
Basic and diluted | 177.4 | |||||||||||
Net income per Limited Partner Unit (in dollars): | ||||||||||||
Basic and diluted | $ | 0.29 |
Six Months Ended June 30, 2017 | ||||||||||||
General Partner | Limited Partners' Common Units | Total | ||||||||||
(in millions of dollars, except per unit data) | ||||||||||||
Distributions declared | $ | 26.3 | $ | 105.5 | $ | 131.8 | ||||||
Income in excess of distributions | 0.1 | 4.4 | 4.5 | |||||||||
Net income attributable to the Partnership | $ | 26.4 | $ | 109.9 | $ | 136.3 | ||||||
Weighted average units outstanding (in millions) (1): | ||||||||||||
Basic and diluted | 177.3 | |||||||||||
Net income per Limited Partner Unit (in dollars): | ||||||||||||
Basic and diluted | $ | 0.62 |
Three Months Ended June 30, 2016 | ||||||||||||||||
General Partner | Limited Partners' Common Units | Limited Partners' Subordinated Units | Total | |||||||||||||
(in millions of dollars, except per unit data) | ||||||||||||||||
Distributions declared | $ | 4.7 | $ | 27.4 | $ | 16.9 | $ | 49.0 | ||||||||
Income in excess of distributions | 0.3 | 8.7 | 5.8 | 14.8 | ||||||||||||
Net income attributable to the Partnership | $ | 5.0 | $ | 36.1 | $ | 22.7 | $ | 63.8 | ||||||||
Weighted average units outstanding (in millions): | ||||||||||||||||
Basic and diluted | 102.6 | 67.5 | ||||||||||||||
Net income per Limited Partner Unit (in dollars): | ||||||||||||||||
Basic and diluted | $ | 0.35 | $ | 0.34 |
Six Months Ended June 30, 2016 | ||||||||||||||||
General Partner | Limited Partners' Common Units | Limited Partners' Subordinated Units | Total | |||||||||||||
(in millions of dollars, except per unit data) | ||||||||||||||||
Distributions declared | $ | 7.6 | $ | 50.4 | $ | 32.7 | $ | 90.7 | ||||||||
Income in excess of distributions | 0.5 | 16.2 | 11.7 | 28.4 | ||||||||||||
Net income attributable to the Partnership | $ | 8.1 | $ | 66.6 | $ | 44.4 | $ | 119.1 | ||||||||
Weighted average units outstanding (in millions): | ||||||||||||||||
Basic and diluted | 93.8 | 67.5 | ||||||||||||||
Net income per Limited Partner Unit (in dollars): | ||||||||||||||||
Basic and diluted | $ | 0.71 | $ | 0.66 |
• | Refinery Gas Pipeline. A network of approximately 100-miles of refinery gas pipeline connecting multiple refineries and plants operated along the Gulf Coast to Shell Chemical sites and the Norco and Deer Park refineries. The pipelines transport a mix of methane, natural gas liquids and olefins. |
• | Eastern Corridor Pipelines. The Delta Pipeline and Na Kika Pipeline, which connect offshore oil production in the eastern corridor of the Gulf of Mexico to key onshore markets. |
• | Delta Pipeline. An approximately 128-miles of pipeline aggregating volumes from five offshore pipelines and delivering volumes to key onshore markets. |
• | Na Kika Pipeline. A pipeline system of approximately 75-miles located in the Eastern Gulf of Mexico serving as a host to eight different subsea fields and connecting to the Delta Pipeline at Main Pass 69. |
• | Increase in Borrowing Capacity. We had a net increase in our borrowing capacity of $420.0 million. On March 1, 2017, we entered into a loan facility agreement with Shell Treasury Center (West), Inc (“STCW”) with a borrowing capacity of $600.0 million (the “Five Year Fixed Facility”). On March 1, 2017, our 364-day revolving credit facility with STCW with a borrowing capacity of $180.0 million (“364-Day Revolver”) expired. |
• | Expiration of Subordination Period. On February 15, 2017, all of the subordinated units converted into common units following the payment of the cash distribution for the fourth quarter of 2016. Each of our 67,475,068 outstanding subordinated units converted into one common unit. The converted units participate pro rata with the other common units in distributions of available cash. The conversion of the subordinated units does not impact the amount of cash distributions paid by us or the total number of outstanding units. The allocation of net income and cash distributions during the period were effected in accordance with terms of our partnership agreement. |
• | April 2017 Divestiture. On April 28, 2017, Zydeco divested a small segment of its pipeline system (the “April 2017 Divestiture”) to Equilon Enterprises LLC, a related party, as part of the Motiva JV separation. We determined that the 5.5-mile pipeline segment that connects Port Neches to the Port Arthur Refinery is not strategic to the overall Zydeco pipeline system. We received $21.0 million in cash consideration for this sale, of which $19.4 million is attributable to the Partnership. |
• | May 2017 Acquisition. On May 10, 2017, we completed the May 2017 Acquisition, including the acquisition of the refinery gas pipeline from Shell Chemical, which was our first acquisition from a Shell entity outside of SPLC. |
• | ATM Program. During the quarter ended June 30, 2017, we completed the sale of 94,925 common units under this program for $2.9 million net proceeds. We issued 1,938 general partner units to our general partner for $0.1 million in order to maintain 2.0% general partner interest in us. |
• | Operational Excellence. Our first priority is the safety, reliability and efficiency of our operations. SPLC, the operator of our Shell-operated assets, is an industry-recognized operator with over 100 years of experience in the pipeline business. We benefit from Shell’s leadership in operational excellence and leverage Shell’s industry leading operating and asset integrity processes. |
• | Fee-based businesses supported by long-term contracts with creditworthy counterparties. We are focused on generating stable and predictable cash flows by providing fee-based transportation and midstream services to Shell and third parties. We believe these agreements will substantially mitigate volatility in our cash flows by reducing our direct exposure to commodity price fluctuations. |
• | Growth through strategic acquisitions in key geographies. We plan to continue to pursue strategic acquisitions of assets from Shell and third parties. We believe our sponsor, Shell, will offer us opportunities to purchase additional midstream assets that it currently owns or that it may acquire or develop in the future. We may also have opportunities to pursue the acquisition or development of additional assets jointly with Shell. |
• | Optimize existing assets and pursue organic growth opportunities. We will seek to enhance the profitability of our existing assets by pursuing opportunities to increase throughput and storage volumes, by expanding our midstream service offerings and by managing costs and improving operating efficiencies. We also intend to consider opportunities to increase our revenues by evaluating and capitalizing on organic expansion projects. We pursue a corridor strategy in the offshore, owning the trunk pipelines that aggregate and transport produced volumes to major onshore markets. These corridors are designed to maintain relatively constant to growing volumes despite individual well and field declines by attracting new Gulf of Mexico production. Producers in new fields seek to reduce their costs and improve their market access by connecting to existing corridors. |
• | maintain utilization of and rates charged for our pipelines and storage facilities; |
• | utilize the remaining uncommitted capacity on, or add additional capacity to, our pipeline systems; |
• | increase throughput volumes on our pipeline systems by making connections to existing or new third party pipelines or other facilities, primarily driven by the anticipated supply of, and demand for, crude oil and refined products; and |
• | identify and execute organic expansion projects. |
• | our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of Adjusted EBITDA, financing methods; |
• | the ability of our business to generate sufficient cash to support our decision to make distributions to our unitholders; |
• | our ability to incur and service debt and fund capital expenditures; and |
• | the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities. |
1) | Deny index increases for any pipeline whose Form No. 6, Page 700 revenues exceed costs by 15% for both of the prior two years; |
2) | Deny index increases that exceed by 5% the cost changes reported on Page 700; and |
3) | Apply the new criteria to costs more closely associated with the pipeline’s proposed rates than with total company-wide costs and revenues now reported on Page 700. |
Results of Operations | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 (1) | 2017 | 2016 (1) | ||||||||||||
(in millions of dollars) | |||||||||||||||
Revenue | $ | 86.8 | $ | 86.8 | $ | 171.2 | $ | 179.0 | |||||||
Costs and expenses | |||||||||||||||
Operations and maintenance | 30.0 | 22.3 | 56.7 | 42.7 | |||||||||||
General and administrative | 11.0 | 9.6 | 21.2 | 19.1 | |||||||||||
Depreciation, amortization and accretion | 9.6 | 8.9 | 19.1 | 18.0 | |||||||||||
Property and other taxes | 3.4 | 3.3 | 7.6 | 7.7 | |||||||||||
Total costs and expenses | 54.0 | 44.1 | 104.6 | 87.5 | |||||||||||
Operating income | 32.8 | 42.7 | 66.6 | 91.5 | |||||||||||
Income from equity investments | 37.2 | 25.6 | 75.9 | 48.8 | |||||||||||
Dividend income from cost investments | 6.2 | 4.6 | 13.5 | 7.4 | |||||||||||
Investment and dividend income | 43.4 | 30.2 | 89.4 | 56.2 | |||||||||||
Interest expense, net | 7.5 | 2.0 | 12.3 | 5.0 | |||||||||||
Income before income taxes | 68.7 | 70.9 | 143.7 | 142.7 | |||||||||||
Income tax expense | — | — | — | — | |||||||||||
Net income | 68.7 | 70.9 | 143.7 | 142.7 | |||||||||||
Less: Net income attributable to Parent | 1.0 | 4.6 | 3.0 | 8.4 | |||||||||||
Less: Net income attributable to noncontrolling interests | 2.2 | 2.5 | 4.4 | 15.2 | |||||||||||
Net income attributable to the Partnership | $ | 65.5 | $ | 63.8 | $ | 136.3 | $ | 119.1 | |||||||
General partner's interest in net income attributable to the Partnership | $ | 14.3 | $ | 5.0 | $ | 26.4 | $ | 8.1 | |||||||
Limited Partners' interest in net income attributable to the Partnership | $ | 51.2 | $ | 58.8 | $ | 109.9 | $ | 111.0 | |||||||
Adjusted EBITDA attributable to the Partnership(2) | $ | 82.7 | $ | 84.8 | $ | 169.3 | $ | 157.3 | |||||||
Cash available for distribution(2) | $ | 88.7 | $ | 77.4 | $ | 179.2 | $ | 144.1 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Pipeline throughput (thousands of barrels per day) (1) | 2017 | 2016 | 2017 | 2016 | |||||||||||||
Zydeco – Mainlines | 589 | 541 | 590 | 550 | |||||||||||||
Zydeco – Other segments | 368 | 509 | 461 | 435 | |||||||||||||
Zydeco total system | 957 | 1,050 | 1,051 | 985 | |||||||||||||
Mars total system | 506 | 398 | 473 | 346 | |||||||||||||
Bengal total system | 608 | 544 | 594 | 555 | |||||||||||||
Poseidon total system | 257 | 275 | 259 | 262 | |||||||||||||
Auger total system | 43 | 113 | 67 | 124 | |||||||||||||
Delta total system | 218 | 262 | 227 | 269 | |||||||||||||
Na Kika total System | 38 | 51 | 42 | 52 | |||||||||||||
Odyssey total system | 115 | 104 | 114 | 106 | |||||||||||||
Other systems | 308 | — | — | 323 | — | ||||||||||||
Terminals (2) | |||||||||||||||||
Lockport terminaling throughput and storage volumes | 195 | 196 | 202 | 207 | |||||||||||||
Revenue per barrel ($ per barrel) | |||||||||||||||||
Zydeco total system (3) | $ | 0.65 | $ | 0.58 | $ | 0.59 | $ | 0.61 | |||||||||
Mars total system (3) | 1.35 | 1.41 | 1.40 | 1.57 | |||||||||||||
Bengal total system (3) | 0.32 | 0.35 | 0.33 | 0.34 | |||||||||||||
Auger total system (3) | 1.03 | 1.02 | 1.10 | 1.17 | |||||||||||||
Delta total system (3) | 0.53 | 0.52 | 0.53 | 0.50 | |||||||||||||
Na Kika total System (3) | 0.71 | 0.73 | 0.71 | 0.70 | |||||||||||||
Odyssey total system (3) | 0.95 | 0.95 | 0.95 | 0.96 | |||||||||||||
Lockport total system (4) | 0.23 | 0.26 | 0.23 | 0.25 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(in millions of dollars) | 2017 | 2016 (1) | 2017 | 2016 (1) | |||||||||||
Reconciliation of Adjusted EBITDA and Cash Available for Distribution to Net Income | |||||||||||||||
Net income | $ | 68.7 | $ | 70.9 | $ | 143.7 | $ | 142.7 | |||||||
Add: | |||||||||||||||
Allowance oil reduction to net realizable value | 0.3 | — | 0.3 | — | |||||||||||
Depreciation, amortization and accretion | 9.6 | 8.9 | 19.1 | 18.0 | |||||||||||
Interest expense, net | 7.5 | 2.0 | 12.3 | 5.0 | |||||||||||
Income tax expense | — | — | — | — | |||||||||||
Cash distribution received from equity investments | 38.9 | 31.5 | 82.8 | 57.8 | |||||||||||
Less: | |||||||||||||||
Income from equity investments | 37.2 | 25.6 | 75.9 | 48.8 | |||||||||||
Adjusted EBITDA | 87.8 | 87.7 | 182.3 | 174.7 | |||||||||||
Less: | |||||||||||||||
Adjusted EBITDA attributable to Parent | 2.5 | — | 7.8 | — | |||||||||||
Adjusted EBITDA attributable to noncontrolling interests | 2.6 | 2.9 | 5.2 | 17.4 | |||||||||||
Adjusted EBITDA attributable to the Partnership | 82.7 | 84.8 | 169.3 | 157.3 | |||||||||||
Less: | |||||||||||||||
Net interest paid attributable to the Partnership (2) | 7.5 | 1.0 | 12.3 | 3.1 | |||||||||||
Income taxes paid attributable to the Partnership | — | — | — | — | |||||||||||
Maintenance capex attributable to the Partnership (3) | 10.4 | 6.7 | 15.6 | 9.4 | |||||||||||
Add: | |||||||||||||||
Net adjustments from volume deficiency payments attributable to the Partnership | 0.4 | (0.1 | ) | 7.9 | (1.2 | ) | |||||||||
Reimbursements from Parent included in partners' capital | 4.1 | 0.4 | 10.5 | 0.5 | |||||||||||
April 2017 divestiture attributable to the Partnership | 19.4 | — | 19.4 | — | |||||||||||
Cash available for distribution attributable to the Partnership | $ | 88.7 | $ | 77.4 | $ | 179.2 | $ | 144.1 |
Six Months Ended June 30, | |||||||
2017 | 2016 (1) | ||||||
(in millions of dollars) | |||||||
Reconciliation of Adjusted EBITDA and Cash Available for Distribution to Net Cash Provided by Operating Activities | |||||||
Net cash provided by operating activities | $ | 175.3 | $ | 167.5 | |||
Add: | |||||||
Interest expense, net | 12.3 | 5.0 | |||||
Income tax expense | — | — | |||||
Return of investment | 8.4 | 8.0 | |||||
Less: | |||||||
Deferred revenue | 10.4 | (1.7 | ) | ||||
Non-cash interest expense | 0.1 | 0.1 | |||||
Change in other assets and liabilities | 3.2 | 7.4 | |||||
Adjusted EBITDA | 182.3 | 174.7 | |||||
Less: | |||||||
Adjusted EBITDA attributable to Parent | 7.8 | — | |||||
Adjusted EBITDA attributable to noncontrolling interests | 5.2 | 17.4 | |||||
Adjusted EBITDA attributable to the Partnership | 169.3 | 157.3 | |||||
Less: | |||||||
Net interest paid attributable to the Partnership (2) | 12.3 | 3.1 | |||||
Income taxes paid attributable to the Partnership | — | — | |||||
Maintenance capex attributable to the Partnership (3) | 15.6 | 9.4 | |||||
Add: | |||||||
Net adjustments from volume deficiency payments attributable to the Partnership | 7.9 | (1.2 | ) | ||||
Reimbursements from Parent included in partners' capital | 10.5 | 0.5 | |||||
April 2017 divestiture attributable to the Partnership | 19.4 | — | |||||
Cash available for distribution attributable to the Partnership | $ | 179.2 | $ | 144.1 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
(in millions of dollars) | ||||||||||||||||
Expansion capital expenditures | $ | 4.3 | $ | 2.5 | $ | 6.1 | $ | 8.2 | ||||||||
Maintenance capital expenditures | 8.6 | 7.8 | 14.8 | 11.5 | ||||||||||||
Total capital expenditures paid | 12.9 | 10.3 | 20.9 | 19.7 | ||||||||||||
(Decrease) increase in accrued capital expenditures | (2.0 | ) | (1.1 | ) | 2.7 | (4.4 | ) | |||||||||
Total capital expenditures incurred | $ | 10.9 | $ | 9.2 | $ | 23.6 | $ | 15.3 |
Actual Capital Expenditures | Expected Capital Expenditures | |||||||||||
Six Months Ended June 30, 2017 | Six Months Ended December 31, 2017 | Total Expected 2017 Capital Expenditures | ||||||||||
(in millions of dollars) | ||||||||||||
Expansion capital expenditures | ||||||||||||
Zydeco | $ | 6.1 | $ | 11.3 | $ | 17.4 | ||||||
Total expansion capital expenditures | 6.1 | 11.3 | 17.4 | |||||||||
Maintenance capital expenditures | ||||||||||||
Zydeco | 13.4 | 12.2 | 25.6 | |||||||||
Lockport | 2.0 | 1.8 | 3.8 | |||||||||
Auger | 0.3 | — | 0.3 | |||||||||
Delta | 1.8 | 2.1 | 3.9 | |||||||||
Refinery Gas Pipeline | — | 6.1 | 6.1 | |||||||||
Total maintenance capital expenditures | 17.5 | 22.2 | 39.7 | |||||||||
Total capital expenditures | $ | 23.6 | $ | 33.5 | $ | 57.1 |
Total | Less than 1 year | Years 2 to 3 | Years 4 to 5 | More than 5 years | |||||||||||||||
Operating lease for land (1) | $ | 2.8 | $ | 0.2 | $ | 0.4 | $ | 0.4 | $ | 1.8 | |||||||||
Capital lease for Port Neches storage tanks (2) | 71.5 | 5.0 | 10.1 | 10.1 | 46.3 | ||||||||||||||
Joint tariff agreement | 47.1 | 5.1 | 10.3 | 10.3 | 21.4 | ||||||||||||||
Debt obligation (3) | 1,266.9 | — | 760.0 | 506.9 | — | ||||||||||||||
Total | $ | 1,388.3 | $ | 10.3 | $ | 780.8 | $ | 527.7 | $ | 69.5 |
• | The continued ability of Shell and our non-affiliate customers to satisfy their obligations under our commercial and other agreements and the impact of lower market prices for oil, and refined products. |
• | The volume of crude oil and refined petroleum products we transport or store and the prices that we can charge our customers. |
• | The tariff rates with respect to volumes that we transport through our regulated assets, which rates are subject to review and possible adjustment imposed by federal and state regulators. |
• | Changes in revenue we realize under the loss allowance provisions of our fees and tariffs resulting from changes in underlying commodity prices. |
• | Fluctuations in the prices for crude oil and refined petroleum products. |
• | The level of onshore and offshore (including deepwater) production and demand for crude by U.S. refiners. |
• | The level of production of refinery gas by refineries and demand by chemical sites. |
• | Changes in global economic conditions and the effects of a global economic downturn on the business of Shell and the business of its suppliers, customers, business partners and credit lenders. |
• | Liabilities associated with the risks and operational hazards inherent in transporting and/or storing crude oil, refined petroleum products and refinery gas. |
• | Curtailment of operations or expansion projects due to unexpected leaks or spills, severe weather disruption; riots, strikes, lockouts or other industrial disturbances; or failure of information technology systems due to various causes, including unauthorized access or attack. |
• | Costs or liabilities associated with federal, state and local laws and regulations relating to environmental protection and safety, including spills, releases and pipeline integrity. |
• | Costs associated with compliance with evolving environmental laws and regulations on climate change. |
• | Costs associated with compliance with safety regulations and system maintenance programs, including pipeline integrity management program testing and related repairs. |
• | Changes in tax status. |
• | Changes in the cost or availability of third-party vessels, pipelines, rail cars and other means of delivering and transporting crude oil and refined petroleum products. |
• | Direct or indirect effects on our business resulting from actual or threatened terrorist incidents or acts of war. |
• | Availability of acquisitions and financing for acquisitions on our expected timing and acceptable terms. |
• | Changes in, and availability to us, of the equity and debt capital markets. |
• | The factors generally described in Part I, Item 1A. Risk Factors of our 2016 Annual Report. |
• | damages to pipelines, facilities, offshore pipeline equipment and surrounding properties caused by third parties, severe weather, natural disasters, including hurricanes, and acts of terrorism; |
• | maintenance, repairs, mechanical or structural failures at our or SPLC’s facilities or at third-party facilities on which our customers’ or our operations are dependent, including electrical shortages, power disruptions and power grid failures; |
• | damages to, loss of availability of and delays in gaining access to interconnecting third-party pipelines, terminals and other means of delivering crude oil and refined products; |
• | costs and liabilities in responding to any soil and groundwater contamination that occurs on our terminal properties, even if the contamination was caused by prior owners and operators of our terminal system; |
• | disruption or failure of information technology systems and network infrastructure due to various causes, including unauthorized access or attack of the central control room from which some of our pipelines are remotely controlled; |
• | leaks of crude oil or refined products as a result of the malfunction or age of equipment or facilities; |
• | unexpected business interruptions; |
• | curtailments of operations due to severe seasonal weather; and |
• | riots, strikes, lockouts or other industrial disturbances. |
Exhibit Number | Exhibit Description | Incorporated by Reference | Filed Herewith | Furnished Herewith | ||||||||||
Form | Exhibit | Filing Date | SEC File No. | |||||||||||
10.1 | Purchase and Sale Agreement, dated as of May 4, 2017, by and among Shell Pipeline Company LP, Shell GOM Pipeline Company LLC, Shell Chemical LP, Shell Midstream Partners, L.P., Shell Midstream Operating LLC, Pecten Midstream LLC and Sand Dollar Pipeline LLC. | 8-K | 10.1 | 5/5/2017 | 001-36710 | |||||||||
31.1 | Certification of Chief Executive Officer pursuant to Rule 13(a)-14 and 15(d)-14 under the Securities Exchange Act of 1934 | X | ||||||||||||
31.2 | Certification of Chief Financial Officer pursuant to Rule 13(a)-14 and 15(d)-14 under the Securities Exchange Act of 1934 | X | ||||||||||||
32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350 | X | ||||||||||||
32.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350 | X | ||||||||||||
101.INS | XBRL Instance Document | X | ||||||||||||
101.SCH | XBRL Taxonomy Extension Schema | X | ||||||||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase | X | ||||||||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase | X | ||||||||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase | X | ||||||||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase | X |
Date: August 3, 2017 | SHELL MIDSTREAM PARTNERS, L.P. | ||
By: | SHELL MIDSTREAM PARTNERS GP LLC | ||
By: | /s/ Shawn J. Carsten | ||
Shawn J. Carsten | |||
Vice President and Chief Financial Officer | |||
(principal financial officer and principal accounting officer) |
Exhibit Number | Exhibit Description | Incorporated by Reference | Filed Herewith | Furnished Herewith | ||||||||||
Form | Exhibit | Filing Date | SEC File No. | |||||||||||
10.1 | Purchase and Sale Agreement, dated as of May 4, 2017, by and among Shell Pipeline Company LP, Shell GOM Pipeline Company LLC, Shell Chemical LP, Shell Midstream Partners, L.P., Shell Midstream Operating LLC, Pecten Midstream LLC and Sand Dollar Pipeline LLC. | 8-K | 10.1 | 5/5/2017 | 001-36710 | |||||||||
31.1 | Certification of Chief Executive Officer pursuant to Rule 13(a)-14 and 15(d)-14 under the Securities Exchange Act of 1934 | X | ||||||||||||
31.2 | Certification of Chief Financial Officer pursuant to Rule 13(a)-14 and 15(d)-14 under the Securities Exchange Act of 1934 | X | ||||||||||||
32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350 | X | ||||||||||||
32.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350 | X | ||||||||||||
101.INS | XBRL Instance Document | X | ||||||||||||
101.SCH | XBRL Taxonomy Extension Schema | X | ||||||||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase | X | ||||||||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase | X | ||||||||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase | X | ||||||||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase | X |
1. | I have reviewed this quarterly report on Form 10-Q of Shell Midstream Partners, L.P.; |
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: |
(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; |
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): |
Date: August 3, 2017 | /s/ John H. Hollowell |
President and Chief Executive Officer | |
of Shell Midstream Partners GP LLC | |
(the general partner of Shell Midstream Partners, L.P.) |
1. | I have reviewed this quarterly report on Form 10-Q of Shell Midstream Partners, L.P.; |
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: |
(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; |
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): |
Date: August 3, 2017 | /s/ Shawn J. Carsten |
Vice President and Chief Financial Officer | |
of Shell Midstream Partners GP LLC | |
(the general partner of Shell Midstream Partners, L.P.) |
Date: August 3, 2017 | /s/ John H. Hollowell |
President and Chief Executive Officer | |
of Shell Midstream Partners GP LLC | |
(the general partner of Shell Midstream Partners, L.P.) |
Date: August 3, 2017 | /s/ Shawn J. Carsten |
Vice President and Chief Financial Officer | |
of Shell Midstream Partners GP LLC | |
(the general partner of Shell Midstream Partners, L.P.) |
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2017 |
Aug. 03, 2017 |
|
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | SHLX | |
Entity Registrant Name | Shell Midstream Partners, L.P. | |
Entity Central Index Key | 0001610466 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding (in shares) | 177,412,369 |
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
Jun. 30, 2016 |
[3] | Dec. 31, 2015 |
[3] | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Current assets | ||||||||||||||||
Cash and cash equivalents | $ 135.4 | [1] | $ 121.9 | [1],[2] | $ 168.6 | $ 93.0 | ||||||||||
Accounts receivable – third parties, net | 17.7 | 20.8 | [2] | |||||||||||||
Accounts receivable – related parties | 23.0 | 12.1 | [2] | |||||||||||||
Allowance oil | 8.3 | 11.7 | [2] | |||||||||||||
Prepaid expenses | 4.5 | 6.5 | [2] | |||||||||||||
Total current assets | 188.9 | 173.0 | [2] | |||||||||||||
Equity method investments | 255.1 | 262.4 | [2] | |||||||||||||
Property, plant and equipment, net | 614.3 | 610.6 | [2] | |||||||||||||
Cost investments | 39.8 | 39.8 | [2] | |||||||||||||
Other assets | 0.6 | 0.6 | [2] | |||||||||||||
Total assets | 1,098.7 | 1,086.4 | [2] | |||||||||||||
Current liabilities | ||||||||||||||||
Accounts payable – third parties | 3.6 | 4.1 | [2] | |||||||||||||
Accounts payable – related parties | 11.4 | 5.4 | [2] | |||||||||||||
Deferred revenue – third parties | 7.2 | 6.0 | [2] | |||||||||||||
Deferred revenue – related parties | 15.3 | 7.9 | [2] | |||||||||||||
Accrued liabilities – third parties | 13.5 | 6.9 | [2] | |||||||||||||
Accrued liabilities – related parties | 6.2 | 5.1 | [2] | |||||||||||||
Total current liabilities | 57.2 | 35.4 | [2] | |||||||||||||
Noncurrent liabilities | ||||||||||||||||
Debt payable – related party | 1,265.4 | 686.0 | [2] | |||||||||||||
Lease liability | 24.6 | 24.9 | [2] | |||||||||||||
Asset retirement obligations | 1.4 | 1.4 | [2] | |||||||||||||
Other unearned income | 2.6 | 2.1 | [2] | |||||||||||||
Total noncurrent liabilities | 1,294.0 | 714.4 | [2] | |||||||||||||
Total liabilities | 1,351.2 | 749.8 | [2] | |||||||||||||
Commitments and Contingencies (Note 11) | [2] | |||||||||||||||
EQUITY | ||||||||||||||||
Total partners' capital | (273.4) | 98.3 | [2] | |||||||||||||
Noncontrolling interest | 20.9 | 21.6 | [2] | |||||||||||||
Net parent investment | 0.0 | 216.7 | [2] | |||||||||||||
Total equity | [4] | (252.5) | 336.6 | [2] | ||||||||||||
Total liabilities and equity | 1,098.7 | 1,086.4 | [2] | |||||||||||||
Shell Pipeline Company L P | ||||||||||||||||
EQUITY | ||||||||||||||||
General partner unitholders | (2,257.5) | (1,873.7) | [2] | |||||||||||||
Common Units | General Public | ||||||||||||||||
EQUITY | ||||||||||||||||
Limited partner unitholders | 2,493.2 | 2,485.7 | [2] | |||||||||||||
Common Units | Shell Pipeline Company L P | ||||||||||||||||
EQUITY | ||||||||||||||||
Limited partner unitholders | (509.1) | (124.1) | [2] | |||||||||||||
Subordinated Units | Shell Pipeline Company L P | ||||||||||||||||
EQUITY | ||||||||||||||||
Limited partner unitholders | 0.0 | (389.6) | [2] | |||||||||||||
Total equity | $ 0.0 | $ (389.6) | ||||||||||||||
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Limited partners' capital account, units outstanding (in units) | 177,412,369 | |
Shell Pipeline Company L P | ||
General partners' capital account, units issued (in units) | 3,620,661 | 3,618,723 |
General partners' capital account, units outstanding (in units) | 3,620,661 | 3,618,723 |
Common Units | General Public | ||
Limited partners' capital account, units issued (in units) | 88,462,233 | 88,367,308 |
Limited partners' capital account, units outstanding (in units) | 88,462,233 | 88,367,308 |
Common Units | Shell Pipeline Company L P | ||
Limited partners' capital account, units issued (in units) | 88,950,136 | 21,475,068 |
Limited partners' capital account, units outstanding (in units) | 88,950,136 | 21,475,068 |
Subordinated Units | Shell Pipeline Company L P | ||
Limited partners' capital account, units issued (in units) | 0 | 67,475,068 |
Limited partners' capital account, units outstanding (in units) | 0 | 67,475,068 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|||||||||||||||
Revenue | ||||||||||||||||||
Third parties | $ 55.3 | [1] | $ 60.8 | [2] | $ 110.8 | [1] | $ 121.1 | [2] | ||||||||||
Related parties | 31.5 | [1] | 26.0 | [2] | 60.4 | [1] | 57.9 | [2] | ||||||||||
Total revenue | 86.8 | [1] | 86.8 | [2] | 171.2 | [1] | 179.0 | [2] | ||||||||||
Costs and expenses | ||||||||||||||||||
Operations and maintenance – third parties | 22.9 | [1] | 14.9 | [2] | 38.5 | [1] | 27.6 | [2] | ||||||||||
Operations and maintenance – related parties | 7.1 | [1] | 7.4 | [2] | 18.2 | [1] | 15.1 | [2] | ||||||||||
General and administrative – third parties | 2.8 | [1] | 2.0 | [2] | 4.6 | [1] | 4.2 | [2] | ||||||||||
General and administrative – related parties | 8.2 | [1] | 7.6 | [2] | 16.6 | [1] | 14.9 | [2] | ||||||||||
Depreciation, amortization and accretion | 9.6 | [1] | 8.9 | [2] | 19.1 | [1],[3] | 18.0 | [2],[4] | ||||||||||
Property and other taxes | 3.4 | [1] | 3.3 | [2] | 7.6 | [1] | 7.7 | [2] | ||||||||||
Total costs and expenses | 54.0 | [1] | 44.1 | [2] | 104.6 | [1] | 87.5 | [2] | ||||||||||
Operating income | 32.8 | [1] | 42.7 | [2] | 66.6 | [1] | 91.5 | [2] | ||||||||||
Income from equity investments | 37.2 | [1] | 25.6 | [2] | 75.9 | [1] | 48.8 | [2] | ||||||||||
Dividend income from cost investments | 6.2 | [1] | 4.6 | [2] | 13.5 | [1] | 7.4 | [2] | ||||||||||
Investment and dividend income | 43.4 | [1] | 30.2 | [2] | 89.4 | [1] | 56.2 | [2] | ||||||||||
Interest expense, net | 7.5 | [1] | 2.0 | [2] | 12.3 | [1] | 5.0 | [2] | ||||||||||
Income before income taxes | 68.7 | [1] | 70.9 | [2] | 143.7 | [1] | 142.7 | [2] | ||||||||||
Income tax expense | 0.0 | [1] | 0.0 | [2] | 0.0 | [1] | 0.0 | [2] | ||||||||||
Net income | 68.7 | [1] | 70.9 | [2] | 143.7 | [1],[3],[5] | 142.7 | [2],[4] | ||||||||||
Less: Net income attributable to noncontrolling interests | 1.0 | [1] | 4.6 | [2] | 3.0 | [1] | 8.4 | [2] | ||||||||||
Less: Net income attributable to noncontrolling interests | 2.2 | [1] | 2.5 | [2] | 4.4 | [1] | 15.2 | [2] | ||||||||||
Net income attributable to the Partnership | 65.5 | [1] | 63.8 | [2] | 136.3 | [1] | 119.1 | [2] | ||||||||||
Limited Partners' interest in net income attributable to the Partnership | $ 51.2 | [1] | $ 58.8 | [2] | $ 109.9 | [1] | $ 111.0 | [2] | ||||||||||
Net income per Limited Partner Unit - Basic and Diluted: | ||||||||||||||||||
Distributions declared per Limited Partner Unit (in dollars per share) | $ 0.30410 | [1] | $ 0.2500 | [2] | $ 0.5951 | [1] | $ 0.4850 | [2] | ||||||||||
Shell Pipeline Company L P | ||||||||||||||||||
Costs and expenses | ||||||||||||||||||
General partner's interest in net income attributable to the Partnership | $ 14.3 | [1] | $ 5.0 | [2] | $ 26.4 | [1] | $ 8.1 | [2] | ||||||||||
Common | ||||||||||||||||||
Costs and expenses | ||||||||||||||||||
Net income attributable to the Partnership | $ 51.2 | $ 36.1 | $ 109.9 | $ 66.6 | ||||||||||||||
Net income per Limited Partner Unit - Basic and Diluted: | ||||||||||||||||||
Net income per Limited Partner Unit (in dollars per share) | $ 0.29 | [1] | $ 0.35 | [2] | $ 0.62 | [1] | $ 0.71 | [2] | ||||||||||
Subordinated | ||||||||||||||||||
Costs and expenses | ||||||||||||||||||
Net income attributable to the Partnership | $ 22.7 | $ 44.4 | ||||||||||||||||
Net income per Limited Partner Unit - Basic and Diluted: | ||||||||||||||||||
Net income per Limited Partner Unit (in dollars per share) | $ 0.00 | [1] | $ 0.34 | [2] | $ 0.00 | [1] | $ 0.66 | [2] | ||||||||||
Common units – public | ||||||||||||||||||
Costs and expenses | ||||||||||||||||||
Net income | $ 54.8 | |||||||||||||||||
Weighted average Limited Partner Units outstanding - Basic and Diluted (in millions): | ||||||||||||||||||
Weighted average Limited Partner Units outstanding - Common (in shares) | 88.4 | [1] | 81.1 | [2] | 88.4 | [1] | 72.3 | [2] | ||||||||||
Common units – public | Shell Pipeline Company L P | ||||||||||||||||||
Costs and expenses | ||||||||||||||||||
Net income | $ 55.1 | |||||||||||||||||
Common units – SPLC | Shell Pipeline Company L P | ||||||||||||||||||
Weighted average Limited Partner Units outstanding - Basic and Diluted (in millions): | ||||||||||||||||||
Weighted average Limited Partner Units outstanding - Common (in shares) | 89.0 | [1] | 21.5 | [2] | 88.9 | [1] | 21.5 | [2] | ||||||||||
Subordinated units – SPLC | Shell Pipeline Company L P | ||||||||||||||||||
Weighted average Limited Partner Units outstanding - Basic and Diluted (in millions): | ||||||||||||||||||
Weighted average Limited Partner Units outstanding - Subordinated (in shares) | 0.0 | [1] | 67.5 | [2] | 0.0 | [1] | 67.5 | [2] | ||||||||||
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions |
6 Months Ended | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 |
[3] | Jun. 30, 2016 |
[5] | |||||||||||||
Cash flows from operating activities | ||||||||||||||||
Net income | $ 143.7 | [1],[2] | $ 142.7 | [4] | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||||||
Depreciation, amortization and accretion | 19.1 | [2] | 18.0 | [4] | ||||||||||||
Non-cash interest expense | 0.1 | 0.1 | ||||||||||||||
Allowance oil reduction to net realizable value | 0.3 | 0.0 | ||||||||||||||
Undistributed equity earnings | (1.5) | 1.0 | ||||||||||||||
Changes in operating assets and liabilities | ||||||||||||||||
Accounts receivable | (14.2) | 2.9 | ||||||||||||||
Allowance oil | 0.7 | 0.4 | ||||||||||||||
Prepaid expenses | 1.8 | 4.5 | ||||||||||||||
Accounts payable | 5.2 | (4.5) | ||||||||||||||
Deferred revenue | 10.4 | (1.7) | ||||||||||||||
Accrued liabilities | 9.7 | 4.1 | ||||||||||||||
Net cash provided by operating activities | 175.3 | 167.5 | ||||||||||||||
Cash flows from investing activities | ||||||||||||||||
Capital expenditures | (20.9) | (19.7) | ||||||||||||||
Acquisitions | (210.6) | (93.7) | ||||||||||||||
Purchase price adjustment | 0.4 | 0.0 | ||||||||||||||
Return of investment | 8.4 | 8.0 | ||||||||||||||
April 2017 Divestiture | 0.8 | 0.0 | ||||||||||||||
Net cash used in investing activities | (221.9) | (105.4) | ||||||||||||||
Cash flows from financing activities | ||||||||||||||||
Net proceeds from public offerings | 2.9 | 818.1 | ||||||||||||||
Borrowing under credit facility | 580.0 | 296.7 | ||||||||||||||
Contributions from general partner | 0.1 | 9.8 | ||||||||||||||
Repayment of credit facilities | 0.0 | (410.0) | ||||||||||||||
Capital distributions to general partner | (419.4) | (599.2) | ||||||||||||||
Distributions to noncontrolling interest | (6.6) | (14.4) | ||||||||||||||
Distributions to unitholders and general partner | (122.2) | (77.0) | ||||||||||||||
Net distributions to Parent | (6.3) | (10.9) | ||||||||||||||
Other contributions from Parent | 12.4 | 0.4 | ||||||||||||||
Proceeds from April 2017 Divestiture | 20.2 | 0.0 | ||||||||||||||
Capital lease payments | (0.3) | 0.0 | ||||||||||||||
Credit facility issuance costs | (0.7) | 0.0 | ||||||||||||||
Net cash provided by financing activities | 60.1 | 13.5 | ||||||||||||||
Net increase in cash and cash equivalents | 13.5 | 75.6 | ||||||||||||||
Cash and cash equivalents at beginning of the period | 121.9 | [6] | 93.0 | |||||||||||||
Cash and cash equivalents at end of the period | 135.4 | 168.6 | ||||||||||||||
Non-cash investing and financing transactions | ||||||||||||||||
Change in accrued capital expenditures | 2.7 | (4.4) | ||||||||||||||
Other non-cash contributions from Parent | 1.1 | 0.1 | ||||||||||||||
Other non-cash capital distributions to general partner | 0.0 | (7.1) | ||||||||||||||
Other non-cash contribution from general partner | 0.0 | 7.1 | ||||||||||||||
Distribution of working capital to Parent | $ (2.8) | $ 0.0 | ||||||||||||||
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - 6 months ended Jun. 30, 2017 - USD ($) $ in Millions |
Total |
Non-controlling Interest |
Net Parent Investment |
Common units – public |
Common units – public
Shell Pipeline Company L P
|
Subordinated Units
Shell Pipeline Company L P
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General Partner
Shell Pipeline Company L P
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Beginning Balance at Dec. 31, 2016 | $ 336.6 | [1],[2] | $ 21.6 | $ 216.7 | [2] | $ 2,485.7 | $ (124.1) | $ (389.6) | $ (1,873.7) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net income | 143.7 | [2],[3],[4] | 4.4 | 3.0 | [2] | 54.8 | 55.1 | 26.4 | |||||||||
Other contributions from Parent | 11.9 | [2] | 11.9 | ||||||||||||||
Net proceeds from public offering | 3.0 | [2] | 2.9 | 0.1 | |||||||||||||
Distributions to unitholders and general partner | (122.2) | [2] | (50.2) | (31.8) | (18.7) | (21.5) | |||||||||||
Distribution to noncontrolling interest | (6.6) | [2] | (6.6) | ||||||||||||||
Proceeds from April 2017 divestiture | 20.2 | [2] | 1.5 | 18.7 | |||||||||||||
Expiration of subordinated period | (408.3) | 408.3 | |||||||||||||||
May 2017 Acquisition | (630.0) | [2] | (210.6) | [2] | (419.4) | ||||||||||||
Net Assets Not Contributed To The Partnership | [2] | (9.1) | (9.1) | ||||||||||||||
Ending Balance at Jun. 30, 2017 | $ (252.5) | [2] | $ 20.9 | $ 0.0 | [2] | $ 2,493.2 | $ (509.1) | $ 0.0 | $ (2,257.5) | ||||||||
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Description of Business and Basis of Presentation |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation Shell Midstream Partners, L.P. (“we,” “us,” “our” or “the Partnership”) is a Delaware limited partnership formed on March 19, 2014 to own and operate assets, including certain assets acquired from Shell Pipeline Company LP (“SPLC”). We conduct our operations through our wholly owned subsidiary Shell Midstream Operating, LLC (“Operating Company”). Our general partner is Shell Midstream Partners GP LLC (“general partner”). References to “Shell” or “Parent” refer collectively to Royal Dutch Shell plc (“RDS”) and its controlled affiliates, other than us, our subsidiaries and our general partner. On November 3, 2014, we completed our Initial Public Offering (“IPO”), and our common units trade on the New York Stock Exchange under the symbol “SHLX.” Description of Business We are a fee-based, growth-oriented master limited partnership formed by Shell to own, operate, develop and acquire pipelines and other midstream assets. Our assets consist of interests in entities that own crude oil and refined products pipelines serving as key infrastructure to transport onshore and offshore crude oil production to Gulf Coast and Midwest refining markets and to deliver refined products from those markets to major demand centers, as well as interests in entities that own natural gas and refinery gas pipelines which transport offshore natural gas to market hubs and deliver refinery gas from refineries and plants to chemical sites along the Gulf Coast. During the second quarter of 2017, we acquired the Delta Pipeline System (“Delta”) and the Na Kika Pipeline System (“Na Kika”), which are held by Pecten Midstream LLC (“Pecten”), and the gas pipeline system (“Refinery Gas Pipeline”), which is held by Sand Dollar Pipeline LLC (“Sand Dollar”). See Note 2 - Acquisitions and Divestitures for additional information. As of June 30, 2017, we own interests in nine crude oil pipeline systems, three refined products systems, one natural gas gathering pipeline system, one gas pipeline system, and a crude tank storage and terminal system. The following table reflects our ownership, and Shell's retained ownership as of June 30, 2017.
We generate a substantial portion of our revenue under long-term agreements by charging fees for the transportation and storage of crude oil and refined products through our pipelines and storage tanks and from income from our equity and cost method investments. Our operations consist of one reportable segment. Basis of Presentation Our condensed consolidated financial statements include all subsidiaries required to be consolidated under generally accepted accounting principles in the United States (“GAAP”). Our reporting currency is U.S. dollars, and all references to dollars are U.S. dollars. The accompanying unaudited condensed consolidated financial statements and related notes have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete annual financial statements. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. During interim periods, we follow the accounting policies disclosed in our Annual Report on Form 10-K for the year ended December 31, 2016 (our “2016 Annual Report”), filed with the United States Securities and Exchange Commission (“SEC”). The unaudited condensed consolidated financial statements for the three and six months ended June 30, 2017 and 2016 include all adjustments we believe are necessary for a fair statement of the results for the interim periods. These adjustments are of a normal recurring nature unless otherwise disclosed. Operating results for the interim periods are not necessarily indicative of the results that may be expected for the full year. These unaudited condensed consolidated financial statements and other information included in this Quarterly Report on Form 10-Q should be read in conjunction with our consolidated financial statements and notes thereto included in our 2016 Annual Report. The acquisition of Delta, Na Kika and Refinery Gas Pipeline (the “Shell Delta, Na Kika and Refinery Gas Pipeline Operations” or “Delta, Na Kika and Refinery Gas Pipeline”) was a transfer of businesses between entities under common control, which requires it to be accounted for as if the transfer had occurred at the beginning of the period of transfer, with prior periods retrospectively adjusted to furnish comparative financial information. Accordingly, the accompanying financial statements and notes have been retrospectively adjusted to include the historical results and financial position of the Shell Delta, Na Kika and Refinery Gas Pipeline Operations prior to the effective date of the acquisition. See Note 2 - Acquisitions and Divestitures for additional information. Summary of Significant Accounting Policies The accounting policies are set forth in Note 2—Summary of Significant Accounting Policies in the Notes to Consolidated Financial Statements of our 2016 Annual Report. There have been no significant changes to these policies during the six months ended June 30, 2017, other than those noted below. Revenue Recognition Certain transportation services agreements with a related party are considered operating leases under GAAP. Revenues from these agreements are recorded within Revenue-related parties in the condensed consolidated statements of income. See Note 3-Related Party Transactions for additional information. Recently Adopted Accounting Pronouncements In October 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-17 to Topic 810, Consolidation, making changes on how a reporting entity should treat indirect interests in an entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of a variable interest entity. The update was effective for us as of January 1, 2017. The adoption of this update did not have a material impact on our financial statements. In March 2016, the FASB issued ASU 2016-07 to Topic 323, Investments - Equity Method and Joint Ventures, to eliminate the need for an entity to retroactively adopt the equity method of accounting when an investment becomes qualified for the use of the equity method of accounting due to an increase in level of ownership or degree of influence. The update was effective for us as of January 1, 2017. The adoption of this update did not have a material impact on our financial statements. Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which will supersede nearly all existing revenue recognition guidance under GAAP. The update's core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The update is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2017. The update allows for either “full retrospective” adoption, meaning the standard is applied to all of the periods presented, or “modified retrospective” adoption, meaning the standard is applied only to the most current period presented in the financial statements. As part of our implementation efforts to date, we have reviewed a majority of our revenue contracts to evaluate the effect of the new standard on our revenue recognition practices, including the impact of adoption on earnings from our equity method investments. Additionally, we are assessing the potential impacts to our revenue recognition policies with respect to certain contractual arrangements that involve either non-cash consideration or reimbursements of capital expenditures. We are also developing processes to generate the disclosures required under the new standard. Based on the analysis conducted to date, we do not believe the impact upon adoption will be material to our Consolidated Financial Statements but are still assessing the impact to our disclosures. Our expectation is to adopt the standard in the first quarter of 2018 under the modified retrospective transition method. For additional information on accounting pronouncements issued prior to March 2017, refer to Note 2—Summary of Significant Accounting Policies in the Notes to Consolidated Financial Statements of our 2016 Annual Report. |
Acquisitions and Divestitures |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions and Divestitures | Acquisitions and Divestitures On May 10, 2017, we acquired a 100% interest in Delta, Na Kika and Refinery Gas Pipeline for $630.0 million in consideration (the “May 2017 Acquisition”). As part of the May 2017 Acquisition, SPLC and Shell GOM Pipeline Company LP (“Shell GOM”) contributed all but the working capital of Delta and Na Kika to Pecten, and Shell Chemical LP (“Shell Chemical”) contributed all but the working capital of Refinery Gas Pipeline to Sand Dollar. The May 2017 Acquisition closed pursuant to a Purchase and Sale Agreement dated May 4, 2017 (the “May 2017 Purchase and Sale Agreement”), among the Operating Company, us, Shell Chemical, Shell GOM and SPLC. Shell Chemical, Shell GOM and SPLC are each wholly owned subsidiaries of Shell. We funded the May 2017 Acquisition with $50.0 million of cash on hand, $73.1 million in borrowings under our Five Year Revolver (as defined in Note 7—Related Party Debt), and $506.9 million in borrowings under our Five Year Fixed Facility (as defined in Note 7—Related Party Debt) with Shell Treasury Center (West) Inc. (“STCW”), an affiliate of Shell. Total transaction costs of $0.8 million were expensed as incurred. The terms of the May 2017 Acquisition were approved by the Board and by the conflicts committee of the Board, which consists entirely of independent directors. The conflicts committee engaged an independent financial advisor and legal counsel. In accordance with the May 2017 Purchase and Sale Agreement, Shell Chemical has agreed to reimburse us for costs and expenses incurred in connection with the conversion of a section of pipe from the Convent refinery to Sorrento from refinery gas service to butane service. The May 2017 Purchase and Sale Agreement contains other customary representations, warranties and covenants. In connection with the May 2017 Acquisition we acquired historical carrying value of property, plant and equipment, net and other assets under common control as follows:
We recognized $419.4 million of consideration in excess of the book value of net assets acquired as a capital distribution to our general partner in accordance with our policy for common control transactions. For the period from closing through June 30, 2017, we recognized $14.1 million in revenues and $6.3 million of net earnings related to the assets acquired. Retrospective adjusted information tables The following tables present our financial position and our results of operations giving effect to the May 2017 Acquisition of the Delta, Na Kika and Refinery Gas Pipeline Operations. The results of Delta, Na Kika and Refinery Gas Pipeline prior to the closing date of the acquisition are included in “Delta, Na Kika and Refinery Gas Pipeline Operations” and the consolidated results are included in “Consolidated Results” within the tables below:
(1) As previously reported in our Annual Report on Form 10-K for 2016. (2) The financial position of the Delta, Na Kika and Refinery Gas Pipeline Operations as of December 31, 2016.
(1) As previously reported in our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2016. (2) Our Parents' results of the Delta, Na Kika and Refinery Gas Pipeline Operations from April 1, 2016 through June 30, 2016.
(1) As previously reported in our Quarterly Report on Form 10-Q for the six month period ended June 30, 2016. (2) Our Parents' results of the Delta, Na Kika and Refinery Gas Pipeline Operations from January 1, 2016 through June 30, 2016.
(1) As previously reported in our Quarterly Report on Form 10-Q for the six month period ended June 30, 2016. (2) Our Parents' results of the Delta, Na Kika and Refinery Gas Pipeline Operations from January 1, 2016 through June 30, 2016. On April 28, 2017, Zydeco divested a small segment of its pipeline system (the “April 2017 Divestiture”) to Equilon Enterprises LLC d/b/a Shell Oil Products US (“SOPUS”) as part of the Motiva JV separation. The April 2017 Divestiture closed pursuant to a Pipeline Sale and Purchase Agreement (the “April 2017 Pipeline Sale and Purchase Agreement”) dated April 28, 2017 among Zydeco and SOPUS. We received $21.0 million in cash consideration for this sale, of which $19.4 million is attributable to the Partnership. The cash consideration represents $0.8 million for the book value of net assets divested, and $20.2 million in excess proceeds received from our Parent. The April 2017 Pipeline Sale and Purchase Agreement contained customary representations and warranties and indemnification by SOPUS. On May 23, 2016, we acquired an additional 30.0% interest in Zydeco, an additional 1.0% interest in Bengal and an additional 3.0% interest in Colonial for $700.0 million in consideration (the “May 2016 Acquisition”). The May 2016 Acquisition closed pursuant to a Contribution Agreement (the “May 2016 Contribution Agreement”) dated May 17, 2016 among us, the Operating Company and SPLC and became effective on April 1, 2016, and is accounted for as a transaction between entities under common control. We funded the May 2016 Acquisition with $345.8 million from the net proceeds of a registered public offering of 10,500,000 common units representing limited partner interests in us (the “May 2016 Offering”), $50.4 million of cash on hand and $296.7 million in borrowings under the Five Year Revolver (as defined in Note 7—Related Party Debt) with STCW, an affiliate of Shell. The remaining $7.1 million in consideration consisted of an issuance of 214,285 general partner units to our general partner in order to maintain its 2.0% general partner interest in us. Total transaction costs of $0.4 million were incurred in association with the May 2016 Acquisition. The terms of the May 2016 Acquisition were approved by the Board and by the conflicts committee of the Board, which consists entirely of independent directors. The conflicts committee engaged an independent financial advisor and legal counsel. In accordance with the May 2016 Contribution Agreement, SPLC has agreed to reimburse us for our proportionate share of certain costs and expenses incurred by Zydeco after April 1, 2016 with respect to a directional drill project to address soil erosion over a two-mile section of our 22-inch diameter pipeline under the Atchafalaya River and Bayou Shaffer in Louisiana. Such reimbursements will be treated as an additional capital contribution from the general partner at the time of payment. The May 2016 Contribution Agreement contained customary representations and warranties and indemnification by SPLC. In connection with the May 2016 Acquisition we acquired book value of net assets under common control as follows:
We recognized $606.3 million of consideration in excess of the book value of net assets acquired as a capital distribution to our general partner in accordance with our policy for common control transactions. This capital distribution was comprised of $599.2 million in cash and $7.1 million in general partner units issued. |
Related Party Transactions |
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Related Party Transactions | Related Party Transactions Related party transactions include transactions with SPLC and Shell, including those entities in which Shell has an ownership interest but does not have control. Acquisition Agreements See the description of the May 2017 Purchase and Sale Agreement related to the May 2017 Acquisition as well as the April 2017 Pipeline Sale and Purchase Agreement related to the April 2017 Divestiture as further described in Note 2—Acquisitions and Divestitures. For a discussion of all other related party acquisition agreements, see Note 4—Related Party Transactions in the Notes to Consolidated Financial Statements of our 2016 Annual Report. Commercial Agreements Omnibus Agreement On November 3, 2014, in connection with the IPO and the acquisition of Zydeco, we entered into an Omnibus Agreement with SPLC and our general partner concerning our payment of an annual general and administrative services fee to SPLC as well as our reimbursement of certain costs incurred by SPLC on our behalf. This agreement addresses the following matters:
Under the Omnibus Agreement, SPLC indemnified us against certain enumerated risks. Of those indemnity obligations, two remain. First, SPLC agreed to be responsible for unknown environmental liabilities arising out of the ownership and operation of our initial assets prior to the closing of the IPO, to the extent identified before November 3, 2017. SPLC's indemnification of us against these environmental liabilities and certain other liabilities is subject to an aggregate limit of $15.0 million, of which $10.7 million remains. Second, SPLC agreed to indemnify us against tax liabilities relating to our initial assets and identified prior to the date that is 60 days after the expiration of the statute of limitations applicable to such liabilities. This obligation has no threshold or cap. We in turn agreed to indemnify SPLC against events and conditions associated with the ownership or operation of our initial assets (other than any liabilities against which SPLC is specifically required to indemnify us as described above). During the six months ended June 30, 2017, neither we nor SPLC made any claims for indemnification under the Omnibus Agreement. Tax Sharing Agreement For a discussion of the Tax Sharing Agreement, see Note 4—Related Party Transactions in the Notes to Consolidated Financial Statements of our 2016 Annual Report. Other Agreements In connection with the IPO and our acquisitions from Shell, we have entered into several customary agreements with SPLC and Shell. These agreements include pipeline operating agreements, reimbursement agreements and services agreements. Noncontrolling Interest Noncontrolling interest consists of SPLC's 7.5% retained ownership interest in Zydeco as of June 30, 2017 and December 31, 2016. Noncontrolling interest was 57.0% at the time of IPO, decreased to 37.5% with the May 2015 Acquisition, and further decreased to 7.5% with the May 2016 Acquisition. Other Related Party Balances Other related party balances consist of the following:
(1) Accounts payable reflects amounts owed to SPLC for reimbursement of third-party expenses incurred by SPLC for our benefit. (2) As of June 30, 2017, accrued liabilities reflects $5.6 million accrued interest and $0.6 million other accrued liabilities. As of December 31, 2016, accrued liabilities reflects $2.6 million accrued interest, $1.6 million fuel accrual and $0.9 million other accrued liabilities. (3) Debt payable reflects borrowings outstanding after taking into account unamortized debt issuance costs of $1.5 million and $0.9 million as of June 30, 2017 and December 31, 2016, respectively. (4) As part of the Motiva JV separation effective May 2017, Motiva is no longer a related party. As of June 30, 2017, this is a third-party balance. Related Party Credit Facilities We have entered into three credit facilities with Shell Treasury Center West (“STCW”), an affiliate of Shell: the Five Year Revolver, the Five Year Fixed Facility and the 364-Day Revolver. The 364-Day Revolver expired as of March 1, 2017, and has not been replaced. Zydeco has also entered into the Zydeco Revolver with STCW. For definitions and additional information regarding these credit facilities, see Note 7—Related Party Debt. Related Party Revenues and Expenses We provide crude oil transportation and storage services to related parties under long-term contracts. We entered into these contracts in the normal course of our business and the services are based on terms consistent with those provided to third parties. Our transportation services revenue from related parties was $22.3 million and $49.3 million for the three and six months ended June 30, 2017, respectively, and $23.9 million and $53.7 million for the three and six months ended June 30, 2016, respectively. Storage revenues from related parties were $1.5 million and $3.4 million for the three and six months ended June 30, 2017, respectively, and $2.1 million and $4.2 million for the three and six months ended June 30, 2016, respectively. Lease revenues from related parties were $7.7 million for both the three and six months ended June 30, 2017 and zero for both the three and six months ended June 30, 2016. We have certain transportations services agreements with a related party that are considered operating leases under GAAP. Revenues from these agreements were $7.7 million for both the three and six months ended June 30, 2017 and are recorded within Revenue-related parties in the condensed consolidated statement of income. These agreements were each entered into for terms of ten years, with the option to extend for two additional five year terms. As of June 30, 2017, future minimum payments to be received under the ten year contract term of these agreements were estimated to be:
During the three and six months ended June 30, 2017, we converted excess allowance oil to cash through sales to affiliates of Shell and recognized a gain of $0.1 million and $0.7 million, respectively, and for the three and six months ended June 30, 2016 we recognized a gain of $0.6 million and $0.5 million, respectively, from such sales in Operations and maintenance expense. During the three and six months ended June 30, 2017, Zydeco, Bengal, Odyssey, Mars, Poseidon, Proteus, Endymion, Colonial, Explorer and Cleopatra paid cash distributions to us of $86.7 million and $177.7 million, of which $41.6 million and $81.4 million related to Zydeco. During the three and six months ended June 30, 2016, Zydeco, Bengal, Mars, Poseidon and Colonial paid cash distributions to us of $69.3 million and $128.8 million, of which $25.0 million and $45.6 million related to Zydeco. During the three and six months ended June 30, 2017, we were allocated $3.1 million and $5.0 million, respectively, and during the three and six months ended June 30, 2016, we were allocated $2.9 million and $5.4 million respectively, of indirect general corporate expenses incurred by SPLC and Shell which are included within general and administrative expenses in the condensed consolidated statements of income. Beginning July 1, 2014, Zydeco entered into an operating and management agreement (the “Management Agreement”) with SPLC under which SPLC provides general management and administrative services to us. As a result, we are not allocated corporate expenses from SPLC or Shell, but are allocated direct expenses and our proportionate share of field and regional expenses, including payroll expenses not covered under the Management Agreement. Beginning October 1, 2015, Pecten entered into an operating and management agreement under which we are not allocated corporate expenses from SPLC or Shell, but are allocated direct expenses and our proportionate share of field and regional expenses from SPLC. Beginning May 10, 2017, Sand Dollar entered into an operating and management agreement under which we are not allocated corporate expenses from SPLC or Shell, but are allocated direct expenses and our proportionate share of field and regional expenses from SPLC. These expenses are primarily allocated to us on the basis of headcount, labor or other measure. These expense allocations have been determined on a basis that both SPLC and we consider to be a reasonable reflection of the utilization of services provided or the benefit received by us during the periods presented. For a discussion of these agreements and other agreements between Pecten and SPLC, see Note 4—Related Party Transactions in the Notes to Consolidated Financial Statements of our 2016 Annual Report. The majority of our insurance coverage is provided by Shell with the remaining coverage provided by third-party insurers. The related party portion of insurance expense for the three and six months ended June 30, 2017 was $1.3 million and $3.0 million, respectively, and for the three and six months ended June 30, 2016, was $1.5 million and $3.1 million, respectively. The following table shows related party expenses, including personnel costs described above, incurred by Shell and SPLC on our behalf that are reflected in the accompanying condensed consolidated statements of income for the indicated periods:
(1) For the three and six months ended June 30, 2017 we incurred $2.0 million and $4.0 million under the Management Agreement and $2.1 million and $4.2 million under the Omnibus Agreement for the general and administrative fee. For the three and six months ended June 30, 2016 we incurred $1.9 million and $3.9 million under the Management Agreement and $2.1 million and $4.2 million under the Omnibus Agreement for the general and administrative fee. Pension and Retirement Savings Plans Employees who directly or indirectly support our operations participate in the pension, postretirement health and life insurance, and defined contribution benefit plans sponsored by Shell, which include other Shell subsidiaries. Our share of pension and postretirement health and life insurance costs for the three and six months ended June 30, 2017 were $0.9 million and $1.7 million, respectively, and for the three and six months ended June 30, 2016 were $0.9 million and $1.7 million, respectively. Our share of defined contribution benefit plan costs for the three and six months ended June 30, 2017 were $0.3 million and $0.6 million, respectively and for the three and six months ended June 30, 2016 were $0.4 million and $0.7 million, respectively. Pension and defined contribution benefit plan expenses are included in either general and administrative expenses or operations and maintenance expenses in the accompanying condensed consolidated statements of income, depending on the nature of the employee’s role in our operations. Equity and Cost Method Investments We have equity and cost method investments in entities, including Odyssey, Mars, Colonial and Explorer in which Shell also owns interests. In some cases we may be required to make capital contributions or other payments to these entities. See Note 4 – Equity Method Investments for additional details. Reimbursements from Our General Partner During the three and six months ended June 30, 2017, we filed claims for reimbursement from our Parent of $4.1 million and $10.5 million, respectively. This reflects our proportionate share of Zydeco directional drill project costs and expenses of $3.5 million and $9.9 million, respectively, for the three and six months ended June 30, 2017. Additionally, this includes reimbursement for the Refinery Gas Pipeline gas to butane service conversion project of $0.6 million for both the three and six months ended June 30, 2017. During the three and six months ended June 30, 2016, we received reimbursement from our Parent for our proportionate share of Zydeco directional drill costs and expenses of $0.2 million and $0.3 million, respectively. |
Equity Method Investments |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments | Equity Method Investments Equity investments in affiliates comprise the following as of the dates indicated:
Unamortized differences in the basis of the initial investments and our interest in the separate net assets within the financial statements of the investees are amortized into net income over the remaining useful lives of the underlying assets. As of June 30, 2017 and December 31, 2016, the unamortized basis differences included in our equity investments are $29.1 million and $30.9 million, respectively. For the three and six months ended June 30, 2017, the net amortization expense was $0.7 million and $1.4 million, respectively. For the three and six months ended June 30, 2016, the net amortization expense was $0.3 million and $0.8 million, respectively. Our equity investments in affiliates balance was affected by the following during the periods indicated:
The following tables present aggregated selected unaudited income statement data for our equity method investments (on a 100% basis):
The difference between operating income and net income represents interest expense or interest income. |
Property, Plant and Equipment |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consist of the following as of the dates indicated:
(1) As of June 30, 2017, includes cost of $163.4 million related to assets under operating lease (as lessor), which commenced in May 2017. As of June 30, 2017 and December 31, 2016, includes cost of $22.8 million related to assets under capital lease (as lessee). (2) As of June 30, 2017, includes accumulated depreciation of $30.5 million related to assets under operating lease (as lessor), which commenced in May 2017. As of June 30, 2017 and December 31, 2016, includes accumulated depreciation of $2.3 million and $1.6 million, respectively, related to assets under capital lease (as lessee). Depreciation and amortization expense on property, plant and equipment for the three and six months ended June 30, 2017 was $9.6 million and $19.1 million, respectively, and for the three and six months ended June 30, 2016 was $8.9 million and $18.0 million, respectively. Depreciation and amortization expense is included in cost and expenses in the accompanying condensed consolidated statements of income. Depreciation and amortization expense on property, plant and equipment includes amounts pertaining to assets under operating and capital leases. |
Accrued Liabilities - Third Parties |
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Accrued Liabilities - Third Parties | Accrued Liabilities - Third Parties Accrued liabilities - third parties consist of the following as of the dates indicated:
For a discussion of accrued liabilities - related parties, see Note 3—Related Party Transactions. |
Related Party Debt |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Debt | Related Party Debt Consolidated related party debt obligations comprise the following as of the dates indicated:
(2) As of June 30, 2017, there was no availability under the $760.0 million Five Year Revolver. (3) As of June 30, 2017, the entire $30.0 million capacity was available under the Zydeco Revolver. (4) The 364-Day Revolver expired March 1, 2017. For three and six months ended June 30, 2017, interest and fee expenses associated with our borrowings were $6.7 million and $10.7 million, respectively. For three and six months ended June 30, 2016, interest and fee expenses associated with our borrowings were $1.0 million and $3.0 million, respectively. Borrowings under our Five Year Revolver approximate fair value as the interest rates are variable and reflective of market rates, which results in a Level 2 instrument. The fair value of our Five Year Fixed Facility is estimated based on the published market prices for issues of similar risk and tenor and is categorized as a Level 2 instrument. As of June 30, 2017, the carrying amount and estimated fair value of total debt (before amortization of issuance costs) was $1,266.9 million and $1,286.7 million, respectively. On May 10, 2017, we funded the May 2017 Acquisition with $50.0 million of cash on hand, $73.1 million in borrowings under our Five Year Revolver (as defined below) and $506.9 million in borrowings under our Five Year Fixed Facility (as defined below). On May 23, 2016, we partially funded the cash portion of the May 2016 Acquisition with $296.7 million in borrowings under our Five Year Revolver. On March 29, 2016, we used cash on hand and net proceeds from sales of common units to third parties to repay $272.6 million of borrowings outstanding under the Five Year Revolver and all $137.4 million of borrowings outstanding under the 364-Day Revolver (as defined below). Credit Facility Agreements Five Year Fixed Facility On March 1, 2017, we entered into a Loan Facility Agreement with STCW with a borrowing capacity of $600.0 million (the “Five Year Fixed Facility”). The Five Year Fixed Facility provides that we may not repay or prepay amounts borrowed without the consent of the lender and amounts repaid or prepaid may not be re-borrowed. We incurred an issuance fee of $0.7 million, which was paid on March 7, 2017. The Five Year Fixed Facility bears a fixed interest rate of 3.23% per annum. The Five Year Fixed Facility matures on March 1, 2022. Five Year Revolver On November 3, 2014, we entered into a five year revolving credit facility (the "Five Year Revolver") with STCW with an initial borrowing capacity of $300.0 million. On May 12, 2015, we amended and restated the Five Year Revolver to increase the borrowing capacity amount to $400.0 million and on September 27, 2016, we further amended and restated the Five Year Revolver to increase the amount of the facility to $760.0 million. In connection with the latest amendment and restatement of the Five Year Revolver, we paid an issuance fee of $0.6 million. Additionally, the Five Year Revolver provides that loans advanced under the facility can have a term ending on or before its maturity date. Borrowings under the Five Year Revolver bear interest at the three-month LIBOR rate plus a margin. For the six months ended June 30, 2017, the weighted average interest rate for the Five Year Revolver was 2.4%. The Five Year Revolver also provides for customary fees, including administrative agent fees and commitment fees. Commitment fees began to accrue beginning on the date we entered into the Revolver agreement. The Five Year Revolver matures on October 31, 2019. 364-Day Revolver On June 29, 2015, in connection with the acquisition done in July 2015, we entered into a second revolving credit facility (the “364-Day Revolver”) with STCW as lender with an initial borrowing capacity of $100.0 million and on November 11, 2015, we amended and restated the 364-Day Revolver to increase the borrowing capacity amount to $180.0 million. The 364-Day Revolver expired as of March 1, 2017. Zydeco Revolving Credit Facility Agreement On August 6, 2014, Zydeco entered into a senior unsecured revolving credit facility agreement with STCW (the “Zydeco Revolver”). The facility has a borrowing capacity of $30.0 million. Loans advanced under the agreement have up to a six-month term. Borrowings under the credit facility bear interest at the three-month LIBOR rate plus a margin. As of June 30, 2017, the interest rate for the Zydeco Revolver was 2.7%. The Zydeco Revolver also requires payment of customary fees, including issuance and commitment fees. The Zydeco Revolver matures on August 6, 2019. Covenants Under the Five Year Fixed Facility, Five Year Revolver and Zydeco Revolver, we (and Zydeco in the case of the Zydeco Revolver) have, among other things:
The facilities also contain customary events of default, such as nonpayment of principal, interest and fees when due and violation of covenants, as well as cross-default provisions under which a default under one credit facility may trigger an event of default in another facility with the same borrower. Any breach of covenants included in our debt agreements which could result in our related party lender demanding payment of the unpaid principal and interest balances will have a material adverse effect upon us and would likely require us to seek to renegotiate these debt arrangements with our related party lender and/or obtain new financing from other sources. As of June 30, 2017, we were in compliance with the covenants contained in the Five Year Fixed Facility and the Five Year Revolver, and Zydeco was in compliance with the covenants contained in the Zydeco Revolver. |
Equity |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | Equity At-the-Market Program On March 2, 2016, we commenced an “at-the-market” equity distribution program pursuant to which we may issue and sell common units for up to $300.0 million in gross proceeds. This program is registered with the SEC on an effective registration statement on Form S-3. On February 28, 2017, we entered into an Amended and Restated Equity Distribution Agreement with the Managers named therein. During the quarter ended June 30, 2017, we completed the sale of 94,925 common units under this program for $2.9 million net proceeds ($3.0 million gross proceeds, or an average price of $31.51 per common unit, less $0.1 million of transaction fees). In connection with the issuance of the common units, we issued 1,938 general partner units to our general partner for $0.1 million in order to maintain its 2.0% general partner interest in us. We used proceeds from these sales of common units and from our general partner's proportionate capital contribution for general partnership purposes. During the quarter ended March 31, 2016, we completed the sale of 750,000 common units under this program for $25.4 million net proceeds ($25.5 million gross proceeds, or an average price of $34.00 per common unit, less $0.1 million of transaction fees). In connection with the issuance of the common units, we issued 15,307 general partner units to our general partner for $0.5 million in order to maintain its 2.0% general partner interest in us. We used the net proceeds from these sales of common units and from our general partner’s proportionate capital contribution to repay borrowings outstanding under the Five Year Revolver and the 364-Day Revolver and for general partnership purposes. Public Offerings On March 29, 2016, we completed the sale of 12,650,000 common units in a registered public offering (the “March 2016 Offering”) for $395.1 million net proceeds ($401.6 million gross proceeds, or $31.75 per common unit, less $6.3 million of underwriter's fees and $0.2 million of transaction fees). In connection with the issuance of the common units, we issued 258,163 general partner units to our general partner for $8.2 million in order to maintain its 2.0% general partner interest in us. We used the net proceeds from the March 2016 Offering and from our general partner’s proportionate capital contribution to repay borrowings outstanding under the Five Year Revolver and the 364-Day Revolver and for general partnership purposes. On May 23, 2016, in conjunction with the May 2016 Acquisition, we completed the sale of 10,500,000 common units in a registered public offering (the “May 2016 Offering”) for $345.8 million net proceeds ($349.1 million gross proceeds, or $33.25 per common unit, less $2.9 million of underwriter's fees and $0.4 million of transaction fees). In connection with the issuance of common units, we issued 214,285 general partner units to our general partner as non-cash consideration of $7.1 million in order to maintain its 2.0% general partner interest in us. We used the net proceeds from the May 2016 Offering and from our general partner's proportionate capital contribution to partially fund the May 2016 Acquisition. As part of the registered public offering on May 23, 2016, the underwriters received an option to purchase an additional 1,575,000 common units, which they exercised in full on June 9, 2016 for $51.8 million net proceeds ($52.4 million gross proceeds, or $33.25 per common unit, less $0.5 million in underwriter's fees and $0.1 million of transaction fees). In connection with this issuance of common units, we issued 32,143 general partner units to our general partner for $1.1 million in order to maintain its 2.0% general partner interest in us. Units Outstanding As of June 30, 2017, we had 177,412,369 common units outstanding, of which 88,462,233 were publicly owned. SPLC owned 88,950,136 common units, representing an aggregate 49.1% limited partner interest in us, all of the incentive distribution rights, and 3,620,661 general partner units, representing a 2.0% general partner interest in us. The changes in the number of units outstanding from December 31, 2016 through June 30, 2017 are as follows:
Expiration of Subordination Period On February 15, 2017, all of the subordinated units converted into common units following the payment of the cash distribution for the fourth quarter of 2016. Each of our 67,475,068 outstanding subordinated units converted into one common unit. As of March 31, 2017, and for any distribution of available cash in the 2017 periods, the converted units participate pro rata with the other common units in distributions of available cash. The conversion of the subordinated units does not impact the amount of cash distributions paid by us or the total number of outstanding units. The allocation of net income and cash distributions during the period were effected in accordance with terms of the partnership agreement. Distributions to our Unitholders The following table details the distributions declared and/or paid for the periods presented:
(1) For more information see Note 12— Subsequent Events. Distributions to Noncontrolling Interest Distributions to SPLC for its noncontrolling interest in Zydeco for the three and six months ended June 30, 2017 were $3.4 million and $6.6 million, respectively, and for the three and six months ended June 30, 2016 were $2.0 million and $14.4 million, respectively. See Note 3—Related Party Transactions for additional details. |
Net Income Per Limited Partner Unit |
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Partners' Capital Notes [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income Per Limited Partner Unit | Net Income Per Limited Partner Unit Net income per unit applicable to common limited partner units, and to subordinated limited partner units in periods prior to the expiration of the subordination period, is computed by dividing the respective limited partners’ interest in net income attributable to the Partnership for the period by the weighted average number of common units and subordinated units, respectively, outstanding for the period. Because we have more than one class of participating securities, we use the two-class method when calculating the net income per unit applicable to limited partners. The classes of participating securities include common units, subordinated units, general partner units and incentive distribution rights. Basic and diluted net income per unit are the same because we do not have any potentially dilutive units outstanding for the period presented. Our net income includes earnings related to businesses acquired through transactions between entities under common control for periods prior to their acquisition by us. We have allocated these pre-acquisition earnings to our Parent. The following tables show the allocation of net income attributable to the Partnership to arrive at net income per limited partner unit:
(1) The subordinated units converted into common units on February 15, 2017 and were considered outstanding common units for the entire period with respect to the weighted average number of units outstanding.
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Income Taxes |
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Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We are not a taxable entity for U.S. federal income tax purposes or for the majority of states that impose an income tax. Taxes on our net income are generally borne by our partners through the allocation of taxable income. Our income tax expense results from partnership activity in the state of Texas, as conducted by Zydeco. Income tax expense for the three and six months ended June 30, 2017 and 2016 were immaterial. |
Commitments and Contingencies |
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Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Environmental Matters We are subject to federal, state, and local environmental laws and regulations. We routinely conduct reviews of potential environmental issues and claims that could impact our assets or operations. These reviews assist us in identifying environmental issues and estimating the costs and timing of remediation efforts. In making environmental liability estimations, we consider the material effect of environmental compliance, pending legal actions against us and potential third-party liability claims. Often, as the remediation evaluation and effort progresses, additional information is obtained, requiring revisions to estimated costs. These revisions are reflected in our income in the period in which they are probable and reasonably estimable. As of June 30, 2017, and December 31, 2016, we did not have any material accrued liabilities associated with environmental clean-up costs. Legal Proceedings We are named defendants in lawsuits and governmental proceedings that arise in the ordinary course of business. For each of our outstanding legal matters, we evaluate the merits of the case, our exposure to the matter, possible legal or settlement strategies and the likelihood of an unfavorable outcome. While there are still uncertainties related to the ultimate costs we may incur, based upon our evaluation and experience to date, we do not expect that the ultimate resolution of these matters will have a material adverse effect on our financial position, operating results, or cash flows. Effective July 31, 2014, a rate case was filed against Zydeco with the FERC. The rate case was resolved by a settlement approved by FERC which established maximum rates for uncommitted (or non-contract) shippers effective December 1, 2015. The settlement also provided for rate refunds for shippers of the difference between the higher pre-settlement uncommitted (or non-contract) rates and the lower settlement rates for the period from July 31, 2014 to November 30, 2015 (plus interest). All expenses related to the FERC rate case were recognized prior to 2016. The shippers' settlements were paid in January 2016 and all related indemnifications were received. Indemnification Under our Omnibus Agreement, certain environmental liabilities, tax liabilities, litigation and other matters attributable to the ownership or operation of our assets prior to the IPO are indemnified by SPLC. For more information, see Note 3 - Related Party Transactions. Minimum Throughput On September 1, 2016, the in-service date of the capital lease for the Port Neches storage tanks, a joint tariff agreement with a third party became effective and requires monthly payments of approximately $0.4 million. The tariff will be analyzed annually and updated based on the FERC indexing adjustment to rates effective July 1 of each year. There was no FERC indexing adjustment to this rate effective July 1, 2017. The initial term of the agreement is ten years with automatic one year renewal terms with the option to cancel prior to each renewal period. |
Subsequent Events |
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Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events We have evaluated events that have occurred after June 30, 2017, through the issuance of these condensed consolidated financial statements. Any material subsequent events that occurred during this time have been properly recognized or disclosed in the consolidated financial statements and accompanying notes. Distribution On July 19, 2017, the Board declared a cash distribution of $0.30410 per limited partner unit for the three months ended June 30, 2017. The distribution will be paid on August 14, 2017 to unitholders of record as of July 31, 2017. Permian Basin Interest On August 1, 2017, we exercised the option to purchase a 50.0% equity interest in Crestwood Permian Basin LLC (the “Permian Basin Interest”) for $47.0 million from an entity jointly owned by Crestwood Equity Partners, L.P. (“Crestwood”) and an affiliate of First Reserve Management, L.P. Crestwood Permian Basin LLC owns the Nautilus gas gathering system located in the Delaware Permian Basin. The acquisition of the Permian Basin Interest is subject to confirmatory due diligence and other customary closing conditions. |
Description of Business and Basis of Presentation (Policies) |
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Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business We are a fee-based, growth-oriented master limited partnership formed by Shell to own, operate, develop and acquire pipelines and other midstream assets. Our assets consist of interests in entities that own crude oil and refined products pipelines serving as key infrastructure to transport onshore and offshore crude oil production to Gulf Coast and Midwest refining markets and to deliver refined products from those markets to major demand centers, as well as interests in entities that own natural gas and refinery gas pipelines which transport offshore natural gas to market hubs and deliver refinery gas from refineries and plants to chemical sites along the Gulf Coast. |
Basis of Presentation | Basis of Presentation Our condensed consolidated financial statements include all subsidiaries required to be consolidated under generally accepted accounting principles in the United States (“GAAP”). Our reporting currency is U.S. dollars, and all references to dollars are U.S. dollars. The accompanying unaudited condensed consolidated financial statements and related notes have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete annual financial statements. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. During interim periods, we follow the accounting policies disclosed in our Annual Report on Form 10-K for the year ended December 31, 2016 (our “2016 Annual Report”), filed with the United States Securities and Exchange Commission (“SEC”). The unaudited condensed consolidated financial statements for the three and six months ended June 30, 2017 and 2016 include all adjustments we believe are necessary for a fair statement of the results for the interim periods. These adjustments are of a normal recurring nature unless otherwise disclosed. Operating results for the interim periods are not necessarily indicative of the results that may be expected for the full year. These unaudited condensed consolidated financial statements and other information included in this Quarterly Report on Form 10-Q should be read in conjunction with our consolidated financial statements and notes thereto included in our 2016 Annual Report. The acquisition of Delta, Na Kika and Refinery Gas Pipeline (the “Shell Delta, Na Kika and Refinery Gas Pipeline Operations” or “Delta, Na Kika and Refinery Gas Pipeline”) was a transfer of businesses between entities under common control, which requires it to be accounted for as if the transfer had occurred at the beginning of the period of transfer, with prior periods retrospectively adjusted to furnish comparative financial information. Accordingly, the accompanying financial statements and notes have been retrospectively adjusted to include the historical results and financial position of the Shell Delta, Na Kika and Refinery Gas Pipeline Operations prior to the effective date of the acquisition. See Note 2 - Acquisitions and Divestitures for additional information. |
Revenue Recognition | Revenue Recognition Certain transportation services agreements with a related party are considered operating leases under GAAP. Revenues from these agreements are recorded within Revenue-related parties in the condensed consolidated statements of income. See Note 3-Related Party Transactions for additional information. |
Recently Adopted and Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements In October 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-17 to Topic 810, Consolidation, making changes on how a reporting entity should treat indirect interests in an entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of a variable interest entity. The update was effective for us as of January 1, 2017. The adoption of this update did not have a material impact on our financial statements. In March 2016, the FASB issued ASU 2016-07 to Topic 323, Investments - Equity Method and Joint Ventures, to eliminate the need for an entity to retroactively adopt the equity method of accounting when an investment becomes qualified for the use of the equity method of accounting due to an increase in level of ownership or degree of influence. The update was effective for us as of January 1, 2017. The adoption of this update did not have a material impact on our financial statements. Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which will supersede nearly all existing revenue recognition guidance under GAAP. The update's core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The update is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2017. The update allows for either “full retrospective” adoption, meaning the standard is applied to all of the periods presented, or “modified retrospective” adoption, meaning the standard is applied only to the most current period presented in the financial statements. As part of our implementation efforts to date, we have reviewed a majority of our revenue contracts to evaluate the effect of the new standard on our revenue recognition practices, including the impact of adoption on earnings from our equity method investments. Additionally, we are assessing the potential impacts to our revenue recognition policies with respect to certain contractual arrangements that involve either non-cash consideration or reimbursements of capital expenditures. We are also developing processes to generate the disclosures required under the new standard. Based on the analysis conducted to date, we do not believe the impact upon adoption will be material to our Consolidated Financial Statements but are still assessing the impact to our disclosures. Our expectation is to adopt the standard in the first quarter of 2018 under the modified retrospective transition method. For additional information on accounting pronouncements issued prior to March 2017, refer to Note 2—Summary of Significant Accounting Policies in the Notes to Consolidated Financial Statements of our 2016 Annual Report. |
Description of Business and Basis of Presentation (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Ownership Percentage | The following table reflects our ownership, and Shell's retained ownership as of June 30, 2017.
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Acquisitions and Divestitures (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Acquired Book Value of Net Assets Under Common Control | In connection with the May 2016 Acquisition we acquired book value of net assets under common control as follows:
In connection with the May 2017 Acquisition we acquired historical carrying value of property, plant and equipment, net and other assets under common control as follows:
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Schedule of Business Acquisitions | The following tables present our financial position and our results of operations giving effect to the May 2017 Acquisition of the Delta, Na Kika and Refinery Gas Pipeline Operations. The results of Delta, Na Kika and Refinery Gas Pipeline prior to the closing date of the acquisition are included in “Delta, Na Kika and Refinery Gas Pipeline Operations” and the consolidated results are included in “Consolidated Results” within the tables below:
(1) As previously reported in our Annual Report on Form 10-K for 2016. (2) The financial position of the Delta, Na Kika and Refinery Gas Pipeline Operations as of December 31, 2016.
(1) As previously reported in our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2016. (2) Our Parents' results of the Delta, Na Kika and Refinery Gas Pipeline Operations from April 1, 2016 through June 30, 2016.
(1) As previously reported in our Quarterly Report on Form 10-Q for the six month period ended June 30, 2016. (2) Our Parents' results of the Delta, Na Kika and Refinery Gas Pipeline Operations from January 1, 2016 through June 30, 2016.
(1) As previously reported in our Quarterly Report on Form 10-Q for the six month period ended June 30, 2016. (2) Our Parents' results of the Delta, Na Kika and Refinery Gas Pipeline Operations from January 1, 2016 through June 30, 2016. |
Related Party Transactions (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Related Party Balances | Other related party balances consist of the following:
(1) Accounts payable reflects amounts owed to SPLC for reimbursement of third-party expenses incurred by SPLC for our benefit. (2) As of June 30, 2017, accrued liabilities reflects $5.6 million accrued interest and $0.6 million other accrued liabilities. As of December 31, 2016, accrued liabilities reflects $2.6 million accrued interest, $1.6 million fuel accrual and $0.9 million other accrued liabilities. (3) Debt payable reflects borrowings outstanding after taking into account unamortized debt issuance costs of $1.5 million and $0.9 million as of June 30, 2017 and December 31, 2016, respectively. (4) As part of the Motiva JV separation effective May 2017, Motiva is no longer a related party. As of June 30, 2017, this is a third-party balance. |
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Schedule of Future Minimum Payments To Be Received | As of June 30, 2017, future minimum payments to be received under the ten year contract term of these agreements were estimated to be:
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Schedule Of Related Party Expenses Including Personnel Costs | The following table shows related party expenses, including personnel costs described above, incurred by Shell and SPLC on our behalf that are reflected in the accompanying condensed consolidated statements of income for the indicated periods:
(1) For the three and six months ended June 30, 2017 we incurred $2.0 million and $4.0 million under the Management Agreement and $2.1 million and $4.2 million under the Omnibus Agreement for the general and administrative fee. For the three and six months ended June 30, 2016 we incurred $1.9 million and $3.9 million under the Management Agreement and $2.1 million and $4.2 million under the Omnibus Agreement for the general and administrative fee. |
Equity Method Investments (Tables) |
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Equity Investments in Affiliates | Equity investments in affiliates comprise the following as of the dates indicated:
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Schedule of Equity Investments in Affiliates Balance Affected | Our equity investments in affiliates balance was affected by the following during the periods indicated:
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Summary of Income Statement Data for Equity Method Investments | The following tables present aggregated selected unaudited income statement data for our equity method investments (on a 100% basis):
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Property, Plant and Equipment (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Property, Plant and Equipment | Property, plant and equipment consist of the following as of the dates indicated:
(1) As of June 30, 2017, includes cost of $163.4 million related to assets under operating lease (as lessor), which commenced in May 2017. As of June 30, 2017 and December 31, 2016, includes cost of $22.8 million related to assets under capital lease (as lessee). (2) As of June 30, 2017, includes accumulated depreciation of $30.5 million related to assets under operating lease (as lessor), which commenced in May 2017. As of June 30, 2017 and December 31, 2016, includes accumulated depreciation of $2.3 million and $1.6 million, respectively, related to assets under capital lease (as lessee). |
Accrued Liabilities - Third Parties (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Liabilities | Accrued liabilities - third parties consist of the following as of the dates indicated:
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Related Party Debt (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Consolidated Related Party Debt Obligations | Consolidated related party debt obligations comprise the following as of the dates indicated:
(2) As of June 30, 2017, there was no availability under the $760.0 million Five Year Revolver. (3) As of June 30, 2017, the entire $30.0 million capacity was available under the Zydeco Revolver. (4) The 364-Day Revolver expired March 1, 2017. |
Equity (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Number of Units Outstanding | The changes in the number of units outstanding from December 31, 2016 through June 30, 2017 are as follows:
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Schedule of Distributions Declared and/or Paid | The following table details the distributions declared and/or paid for the periods presented:
(1) For more information see Note 12— Subsequent Events. |
Net Income Per Limited Partner Unit (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Partners' Capital Notes [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Allocation of Net Income to Arrive at Net Income Per Limited Partner Unit | The following tables show the allocation of net income attributable to the Partnership to arrive at net income per limited partner unit:
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Schedule of Basic and Diluted Net Income Per Unit |
(1) The subordinated units converted into common units on February 15, 2017 and were considered outstanding common units for the entire period with respect to the weighted average number of units outstanding.
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Acquisitions and Divestitures - Book Value of Assets Acquired (Details) - USD ($) $ in Millions |
May 23, 2016 |
May 10, 2017 |
---|---|---|
Delta | ||
Business Acquisition [Line Items] | ||
Book value of assets acquired | $ 50.0 | |
Interest acquired | 100.00% | |
Na Kika | ||
Business Acquisition [Line Items] | ||
Book value of assets acquired | $ 26.0 | |
Interest acquired | 100.00% | |
Refinery Gas Pipeline | ||
Business Acquisition [Line Items] | ||
Book value of assets acquired | $ 134.6 | |
Interest acquired | 100.00% | |
May 2017 Acquisition | ||
Business Acquisition [Line Items] | ||
Book value of assets acquired | $ 210.6 | |
May 2016 Acquisition | ||
Business Acquisition [Line Items] | ||
Cost investment | $ 5.2 | |
Equity method investments | 1.5 | |
Partners capital | 87.0 | |
Book value of assets acquired | $ 93.7 | |
Colonial Pipeline Company (“Colonial”) | ||
Business Acquisition [Line Items] | ||
Interest acquired | 3.00% | |
Bengal | ||
Business Acquisition [Line Items] | ||
Interest acquired | 1.00% | |
Zydeco Pipeline Company LLC (“Zydeco”) | ||
Business Acquisition [Line Items] | ||
Interest acquired | 30.00% |
Acquisitions and Divestitures - Balance Sheet (Details) - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
Jun. 30, 2016 |
Dec. 31, 2015 |
||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Current assets | ||||||||||||||||
Cash and cash equivalents | $ 135.4 | [1] | $ 121.9 | [1],[2] | $ 168.6 | [3] | $ 93.0 | [3] | ||||||||
Accounts receivable – third parties, net | 17.7 | 20.8 | [2] | |||||||||||||
Accounts receivable – related parties | 23.0 | 12.1 | [2] | |||||||||||||
Allowance oil | 8.3 | 11.7 | [2] | |||||||||||||
Prepaid expenses | 4.5 | 6.5 | [2] | |||||||||||||
Total current assets | 188.9 | 173.0 | [2] | |||||||||||||
Equity method investments | 255.1 | 262.4 | [2] | |||||||||||||
Property, plant and equipment, net | 614.3 | 610.6 | [2] | |||||||||||||
Cost investments | 39.8 | 39.8 | [2] | |||||||||||||
Other assets | 0.6 | 0.6 | [2] | |||||||||||||
Total assets | 1,098.7 | 1,086.4 | [2] | |||||||||||||
Current liabilities | ||||||||||||||||
Accounts payable – third parties | 3.6 | 4.1 | [2] | |||||||||||||
Accounts payable – related parties | 11.4 | 5.4 | [2] | |||||||||||||
Deferred revenue – third parties | 7.2 | 6.0 | [2] | |||||||||||||
Deferred revenue – related parties | 15.3 | 7.9 | [2] | |||||||||||||
Accrued liabilities – third parties | 13.5 | 6.9 | [2] | |||||||||||||
Accrued liabilities – related parties | 6.2 | 5.1 | [2] | |||||||||||||
Total current liabilities | 57.2 | 35.4 | [2] | |||||||||||||
Noncurrent liabilities | ||||||||||||||||
Debt payable – related party | 1,265.4 | 686.0 | [2] | |||||||||||||
Lease liability | 24.6 | 24.9 | [2] | |||||||||||||
Asset retirement obligations | 1.4 | 1.4 | [2] | |||||||||||||
Other unearned income | 2.6 | 2.1 | [2] | |||||||||||||
Total noncurrent liabilities | 1,294.0 | 714.4 | [2] | |||||||||||||
Total liabilities | 1,351.2 | 749.8 | [2] | |||||||||||||
Commitments and Contingencies (Note 11) | [2] | |||||||||||||||
EQUITY | ||||||||||||||||
Total partners' capital | (273.4) | 98.3 | [2] | |||||||||||||
Noncontrolling interest | 20.9 | 21.6 | [2] | |||||||||||||
Net parent investment | 0.0 | 216.7 | [2] | |||||||||||||
Total equity | [4] | (252.5) | 336.6 | [2] | ||||||||||||
Total liabilities and equity | 1,098.7 | 1,086.4 | [2] | |||||||||||||
Shell Pipeline Company L P | ||||||||||||||||
EQUITY | ||||||||||||||||
General partner unitholders | (2,257.5) | (1,873.7) | [2] | |||||||||||||
Common Units | General Public | ||||||||||||||||
EQUITY | ||||||||||||||||
Limited partner unitholders | 2,493.2 | 2,485.7 | [2] | |||||||||||||
Common Units | Shell Pipeline Company L P | ||||||||||||||||
EQUITY | ||||||||||||||||
Limited partner unitholders | (509.1) | (124.1) | [2] | |||||||||||||
Subordinated Units | Shell Pipeline Company L P | ||||||||||||||||
EQUITY | ||||||||||||||||
Limited partner unitholders | 0.0 | (389.6) | [2] | |||||||||||||
Total equity | $ 0.0 | (389.6) | ||||||||||||||
Previously Reported | ||||||||||||||||
Current assets | ||||||||||||||||
Cash and cash equivalents | 121.9 | 168.6 | 93.0 | |||||||||||||
Accounts receivable – third parties, net | 18.4 | |||||||||||||||
Accounts receivable – related parties | 10.1 | |||||||||||||||
Allowance oil | 9.0 | |||||||||||||||
Prepaid expenses | 6.0 | |||||||||||||||
Total current assets | 165.4 | |||||||||||||||
Equity method investments | 262.4 | |||||||||||||||
Property, plant and equipment, net | 398.0 | |||||||||||||||
Cost investments | 39.8 | |||||||||||||||
Other assets | 0.0 | |||||||||||||||
Total assets | 865.6 | |||||||||||||||
Current liabilities | ||||||||||||||||
Accounts payable – third parties | 1.5 | |||||||||||||||
Accounts payable – related parties | 5.2 | |||||||||||||||
Deferred revenue – third parties | 6.0 | |||||||||||||||
Deferred revenue – related parties | 7.9 | |||||||||||||||
Accrued liabilities – third parties | 5.6 | |||||||||||||||
Accrued liabilities – related parties | 5.1 | |||||||||||||||
Total current liabilities | 31.3 | |||||||||||||||
Noncurrent liabilities | ||||||||||||||||
Debt payable – related party | 686.0 | |||||||||||||||
Lease liability | 24.9 | |||||||||||||||
Asset retirement obligations | 1.4 | |||||||||||||||
Other unearned income | 2.1 | |||||||||||||||
Total noncurrent liabilities | 714.4 | |||||||||||||||
Total liabilities | 745.7 | |||||||||||||||
Commitments and Contingencies (Note 11) | ||||||||||||||||
EQUITY | ||||||||||||||||
Total partners' capital | 98.3 | |||||||||||||||
Noncontrolling interest | 21.6 | |||||||||||||||
Net parent investment | 0.0 | |||||||||||||||
Total equity | 119.9 | |||||||||||||||
Total liabilities and equity | 865.6 | |||||||||||||||
Previously Reported | Shell Pipeline Company L P | ||||||||||||||||
EQUITY | ||||||||||||||||
General partner unitholders | (1,873.7) | |||||||||||||||
Previously Reported | Common Units | General Public | ||||||||||||||||
EQUITY | ||||||||||||||||
Limited partner unitholders | 2,485.7 | |||||||||||||||
Previously Reported | Common Units | Shell Pipeline Company L P | ||||||||||||||||
EQUITY | ||||||||||||||||
Limited partner unitholders | (124.1) | |||||||||||||||
Previously Reported | Subordinated Units | Shell Pipeline Company L P | ||||||||||||||||
EQUITY | ||||||||||||||||
Limited partner unitholders | (389.6) | |||||||||||||||
Adjustment | ||||||||||||||||
Current assets | ||||||||||||||||
Cash and cash equivalents | 0.0 | $ 0.0 | $ 0.0 | |||||||||||||
Accounts receivable – third parties, net | 2.4 | |||||||||||||||
Accounts receivable – related parties | 2.0 | |||||||||||||||
Allowance oil | 2.7 | |||||||||||||||
Prepaid expenses | 0.5 | |||||||||||||||
Total current assets | 7.6 | |||||||||||||||
Equity method investments | 0.0 | |||||||||||||||
Property, plant and equipment, net | 212.6 | |||||||||||||||
Cost investments | 0.0 | |||||||||||||||
Other assets | 0.6 | |||||||||||||||
Total assets | 220.8 | |||||||||||||||
Current liabilities | ||||||||||||||||
Accounts payable – third parties | 2.6 | |||||||||||||||
Accounts payable – related parties | 0.2 | |||||||||||||||
Deferred revenue – third parties | 0.0 | |||||||||||||||
Deferred revenue – related parties | 0.0 | |||||||||||||||
Accrued liabilities – third parties | 1.3 | |||||||||||||||
Accrued liabilities – related parties | 0.0 | |||||||||||||||
Total current liabilities | 4.1 | |||||||||||||||
Noncurrent liabilities | ||||||||||||||||
Debt payable – related party | 0.0 | |||||||||||||||
Lease liability | 0.0 | |||||||||||||||
Asset retirement obligations | 0.0 | |||||||||||||||
Other unearned income | 0.0 | |||||||||||||||
Total noncurrent liabilities | 0.0 | |||||||||||||||
Total liabilities | 4.1 | |||||||||||||||
Commitments and Contingencies (Note 11) | ||||||||||||||||
EQUITY | ||||||||||||||||
Total partners' capital | 0.0 | |||||||||||||||
Noncontrolling interest | 0.0 | |||||||||||||||
Net parent investment | 216.7 | |||||||||||||||
Total equity | 216.7 | |||||||||||||||
Total liabilities and equity | 220.8 | |||||||||||||||
Adjustment | Shell Pipeline Company L P | ||||||||||||||||
EQUITY | ||||||||||||||||
General partner unitholders | 0.0 | |||||||||||||||
Adjustment | Common Units | General Public | ||||||||||||||||
EQUITY | ||||||||||||||||
Limited partner unitholders | 0.0 | |||||||||||||||
Adjustment | Common Units | Shell Pipeline Company L P | ||||||||||||||||
EQUITY | ||||||||||||||||
Limited partner unitholders | 0.0 | |||||||||||||||
Adjustment | Subordinated Units | Shell Pipeline Company L P | ||||||||||||||||
EQUITY | ||||||||||||||||
Limited partner unitholders | $ 0.0 | |||||||||||||||
|
Acquisitions and Divestitures - Statement of Income (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 |
[1] | Jun. 30, 2016 |
Jun. 30, 2017 |
[1] | Jun. 30, 2016 |
|||||||||||||
Revenue | ||||||||||||||||||
Third parties | $ 55.3 | $ 60.8 | [2] | $ 110.8 | $ 121.1 | [2] | ||||||||||||
Related parties | 31.5 | 26.0 | [2] | 60.4 | 57.9 | [2] | ||||||||||||
Total revenue | 86.8 | 86.8 | [2] | 171.2 | 179.0 | [2] | ||||||||||||
Costs and expenses | ||||||||||||||||||
Operations and maintenance – third parties | 22.9 | 14.9 | [2] | 38.5 | 27.6 | [2] | ||||||||||||
Operations and maintenance – related parties | 7.1 | 7.4 | [2] | 18.2 | 15.1 | [2] | ||||||||||||
General and administrative – third parties | 2.8 | 2.0 | [2] | 4.6 | 4.2 | [2] | ||||||||||||
General and administrative – related parties | 8.2 | 7.6 | [2] | 16.6 | 14.9 | [2] | ||||||||||||
Depreciation, amortization and accretion | 9.6 | 8.9 | [2] | 19.1 | [3] | 18.0 | [2],[4] | |||||||||||
Property and other taxes | 3.4 | 3.3 | [2] | 7.6 | 7.7 | [2] | ||||||||||||
Total costs and expenses | 54.0 | 44.1 | [2] | 104.6 | 87.5 | [2] | ||||||||||||
Operating income | 32.8 | 42.7 | [2] | 66.6 | 91.5 | [2] | ||||||||||||
Income from equity investments | 37.2 | 25.6 | [2] | 75.9 | 48.8 | [2] | ||||||||||||
Dividend income from cost investments | 6.2 | 4.6 | [2] | 13.5 | 7.4 | [2] | ||||||||||||
Investment and dividend income | 43.4 | 30.2 | [2] | 89.4 | 56.2 | [2] | ||||||||||||
Interest expense, net | 7.5 | 2.0 | [2] | 12.3 | 5.0 | [2] | ||||||||||||
Income before income taxes | 68.7 | 70.9 | [2] | 143.7 | 142.7 | [2] | ||||||||||||
Income tax expense | 0.0 | 0.0 | [2] | 0.0 | 0.0 | [2] | ||||||||||||
Net income | 68.7 | 70.9 | [2] | 143.7 | [3],[5] | 142.7 | [2],[4] | |||||||||||
Less: Net income attributable to noncontrolling interests | 1.0 | 4.6 | [2] | 3.0 | 8.4 | [2] | ||||||||||||
Less: Net income attributable to noncontrolling interests | 2.2 | 2.5 | [2] | 4.4 | 15.2 | [2] | ||||||||||||
Net income attributable to the Partnership | $ 65.5 | 63.8 | [2] | $ 136.3 | 119.1 | [2] | ||||||||||||
Previously Reported | ||||||||||||||||||
Revenue | ||||||||||||||||||
Third parties | 52.4 | 103.7 | ||||||||||||||||
Related parties | 18.7 | 44.1 | ||||||||||||||||
Total revenue | 71.1 | 147.8 | ||||||||||||||||
Costs and expenses | ||||||||||||||||||
Operations and maintenance – third parties | 12.3 | 21.7 | ||||||||||||||||
Operations and maintenance – related parties | 5.2 | 10.6 | ||||||||||||||||
General and administrative – third parties | 1.9 | 4.0 | ||||||||||||||||
General and administrative – related parties | 5.9 | 11.6 | ||||||||||||||||
Depreciation, amortization and accretion | 5.8 | 11.7 | ||||||||||||||||
Property and other taxes | 1.9 | 5.1 | ||||||||||||||||
Total costs and expenses | 33.0 | 64.7 | ||||||||||||||||
Operating income | 38.1 | 83.1 | ||||||||||||||||
Income from equity investments | 25.6 | 48.8 | ||||||||||||||||
Dividend income from cost investments | 4.6 | 7.4 | ||||||||||||||||
Investment and dividend income | 30.2 | 56.2 | ||||||||||||||||
Interest expense, net | 2.0 | 5.0 | ||||||||||||||||
Income before income taxes | 66.3 | 134.3 | ||||||||||||||||
Income tax expense | 0.0 | 0.0 | ||||||||||||||||
Net income | 66.3 | 134.3 | ||||||||||||||||
Less: Net income attributable to noncontrolling interests | 0.0 | 0.0 | ||||||||||||||||
Less: Net income attributable to noncontrolling interests | 2.5 | 15.2 | ||||||||||||||||
Net income attributable to the Partnership | 63.8 | 119.1 | ||||||||||||||||
Adjustment | ||||||||||||||||||
Revenue | ||||||||||||||||||
Third parties | 8.4 | 17.4 | ||||||||||||||||
Related parties | 7.3 | 13.8 | ||||||||||||||||
Total revenue | 15.7 | 31.2 | ||||||||||||||||
Costs and expenses | ||||||||||||||||||
Operations and maintenance – third parties | 2.6 | 5.9 | ||||||||||||||||
Operations and maintenance – related parties | 2.2 | 4.5 | ||||||||||||||||
General and administrative – third parties | 0.1 | 0.2 | ||||||||||||||||
General and administrative – related parties | 1.7 | 3.3 | ||||||||||||||||
Depreciation, amortization and accretion | 3.1 | 6.3 | ||||||||||||||||
Property and other taxes | 1.4 | 2.6 | ||||||||||||||||
Total costs and expenses | 11.1 | 22.8 | ||||||||||||||||
Operating income | 4.6 | 8.4 | ||||||||||||||||
Income from equity investments | 0.0 | 0.0 | ||||||||||||||||
Dividend income from cost investments | 0.0 | 0.0 | ||||||||||||||||
Investment and dividend income | 0.0 | 0.0 | ||||||||||||||||
Interest expense, net | 0.0 | 0.0 | ||||||||||||||||
Income before income taxes | 4.6 | 8.4 | ||||||||||||||||
Income tax expense | 0.0 | 0.0 | ||||||||||||||||
Net income | 4.6 | 8.4 | ||||||||||||||||
Less: Net income attributable to noncontrolling interests | 4.6 | 8.4 | ||||||||||||||||
Less: Net income attributable to noncontrolling interests | 0.0 | 0.0 | ||||||||||||||||
Net income attributable to the Partnership | $ 0.0 | $ 0.0 | ||||||||||||||||
|
Acquisitions and Divestitures - Statement of Cash Flows (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|||||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Net income | $ 68.7 | [1] | $ 70.9 | [2] | $ 143.7 | [1],[3],[4] | $ 142.7 | [2],[5] | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||||||||||
Depreciation, amortization and accretion | 9.6 | [1] | 8.9 | [2] | 19.1 | [1],[4] | 18.0 | [2],[5] | ||||||||||||
Non-cash interest expense | 0.1 | [4] | 0.1 | [5] | ||||||||||||||||
Undistributed equity earnings | (1.5) | [4] | 1.0 | [5] | ||||||||||||||||
Changes in operating assets and liabilities | ||||||||||||||||||||
Accounts receivable | (14.2) | [4] | 2.9 | [5] | ||||||||||||||||
Allowance oil | 0.7 | [4] | 0.4 | [5] | ||||||||||||||||
Prepaid expenses | 1.8 | [4] | 4.5 | [5] | ||||||||||||||||
Accounts payable | 5.2 | [4] | (4.5) | [5] | ||||||||||||||||
Deferred revenue | 10.4 | [4] | (1.7) | [5] | ||||||||||||||||
Accrued liabilities | 9.7 | [4] | 4.1 | [5] | ||||||||||||||||
Net cash provided by operating activities | 175.3 | [4] | 167.5 | [5] | ||||||||||||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures | (20.9) | [4] | (19.7) | [5] | ||||||||||||||||
Acquisitions | (210.6) | [4] | (93.7) | [5] | ||||||||||||||||
Return of investment | 8.4 | [4] | 8.0 | [5] | ||||||||||||||||
Net cash used in investing activities | (221.9) | [4] | (105.4) | [5] | ||||||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Net proceeds from public offerings | 2.9 | [4] | 818.1 | [5] | ||||||||||||||||
Borrowing under credit facility | 580.0 | [4] | 296.7 | [5] | ||||||||||||||||
Contributions from general partner | 0.1 | [4] | 9.8 | [5] | ||||||||||||||||
Repayment of credit facilities | 0.0 | [4] | (410.0) | [5] | ||||||||||||||||
Capital distributions to general partner | (419.4) | [4] | (599.2) | [5] | ||||||||||||||||
Distributions to noncontrolling interest | (6.6) | [4] | (14.4) | [5] | ||||||||||||||||
Distributions to unitholders and general partner | (122.2) | [4] | (77.0) | [5] | ||||||||||||||||
Net distributions to Parent | (6.3) | [4] | (10.9) | [5] | ||||||||||||||||
Other contributions from Parent | 12.4 | [4] | 0.4 | [5] | ||||||||||||||||
Net cash provided by financing activities | 60.1 | [4] | 13.5 | [5] | ||||||||||||||||
Net increase in cash and cash equivalents | 13.5 | [4] | 75.6 | [5] | ||||||||||||||||
Cash and cash equivalents at beginning of the period | 121.9 | [4],[6] | 93.0 | [5] | ||||||||||||||||
Cash and cash equivalents at end of the period | $ 135.4 | [4] | 168.6 | [5] | 135.4 | [4] | 168.6 | [5] | ||||||||||||
Change in accrued capital expenditures | 2.7 | [4] | (4.4) | [5] | ||||||||||||||||
Other non-cash contributions from Parent | 1.1 | [4] | 0.1 | [5] | ||||||||||||||||
Other non-cash capital distributions to general partner | 0.0 | [4] | (7.1) | [5] | ||||||||||||||||
Other non-cash contribution from general partner | 0.0 | [4] | 7.1 | [5] | ||||||||||||||||
Previously Reported | ||||||||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Net income | 66.3 | 134.3 | ||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||||||||||
Depreciation, amortization and accretion | 5.8 | 11.7 | ||||||||||||||||||
Non-cash interest expense | 0.1 | |||||||||||||||||||
Undistributed equity earnings | 1.0 | |||||||||||||||||||
Changes in operating assets and liabilities | ||||||||||||||||||||
Accounts receivable | 4.3 | |||||||||||||||||||
Allowance oil | (0.8) | |||||||||||||||||||
Prepaid expenses | 3.2 | |||||||||||||||||||
Accounts payable | (3.5) | |||||||||||||||||||
Deferred revenue | (1.7) | |||||||||||||||||||
Accrued liabilities | 2.1 | |||||||||||||||||||
Net cash provided by operating activities | 150.7 | |||||||||||||||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures | (13.8) | |||||||||||||||||||
Acquisitions | (93.7) | |||||||||||||||||||
Return of investment | 8.0 | |||||||||||||||||||
Net cash used in investing activities | (99.5) | |||||||||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Net proceeds from public offerings | 818.1 | |||||||||||||||||||
Borrowing under credit facility | 296.7 | |||||||||||||||||||
Contributions from general partner | 9.8 | |||||||||||||||||||
Repayment of credit facilities | (410.0) | |||||||||||||||||||
Capital distributions to general partner | (599.2) | |||||||||||||||||||
Distributions to noncontrolling interest | (14.4) | |||||||||||||||||||
Distributions to unitholders and general partner | (77.0) | |||||||||||||||||||
Net distributions to Parent | 0.0 | |||||||||||||||||||
Other contributions from Parent | 0.4 | |||||||||||||||||||
Net cash provided by financing activities | 24.4 | |||||||||||||||||||
Net increase in cash and cash equivalents | 75.6 | |||||||||||||||||||
Cash and cash equivalents at beginning of the period | 121.9 | 93.0 | ||||||||||||||||||
Cash and cash equivalents at end of the period | 168.6 | 168.6 | ||||||||||||||||||
Change in accrued capital expenditures | (0.6) | |||||||||||||||||||
Other non-cash contributions from Parent | 0.1 | |||||||||||||||||||
Other non-cash capital distributions to general partner | (7.1) | |||||||||||||||||||
Other non-cash contribution from general partner | 7.1 | |||||||||||||||||||
Adjustment | ||||||||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Net income | 4.6 | 8.4 | ||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||||||||||
Depreciation, amortization and accretion | 3.1 | 6.3 | ||||||||||||||||||
Non-cash interest expense | 0.0 | |||||||||||||||||||
Undistributed equity earnings | 0.0 | |||||||||||||||||||
Changes in operating assets and liabilities | ||||||||||||||||||||
Accounts receivable | (1.4) | |||||||||||||||||||
Allowance oil | 1.2 | |||||||||||||||||||
Prepaid expenses | 1.3 | |||||||||||||||||||
Accounts payable | (1.0) | |||||||||||||||||||
Deferred revenue | 0.0 | |||||||||||||||||||
Accrued liabilities | 2.0 | |||||||||||||||||||
Net cash provided by operating activities | 16.8 | |||||||||||||||||||
Cash flows from investing activities | ||||||||||||||||||||
Capital expenditures | (5.9) | |||||||||||||||||||
Acquisitions | 0.0 | |||||||||||||||||||
Return of investment | 0.0 | |||||||||||||||||||
Net cash used in investing activities | (5.9) | |||||||||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Net proceeds from public offerings | 0.0 | |||||||||||||||||||
Borrowing under credit facility | 0.0 | |||||||||||||||||||
Contributions from general partner | 0.0 | |||||||||||||||||||
Repayment of credit facilities | 0.0 | |||||||||||||||||||
Capital distributions to general partner | 0.0 | |||||||||||||||||||
Distributions to noncontrolling interest | 0.0 | |||||||||||||||||||
Distributions to unitholders and general partner | 0.0 | |||||||||||||||||||
Net distributions to Parent | (10.9) | |||||||||||||||||||
Other contributions from Parent | 0.0 | |||||||||||||||||||
Net cash provided by financing activities | (10.9) | |||||||||||||||||||
Net increase in cash and cash equivalents | 0.0 | |||||||||||||||||||
Cash and cash equivalents at beginning of the period | $ 0.0 | 0.0 | ||||||||||||||||||
Cash and cash equivalents at end of the period | $ 0.0 | 0.0 | ||||||||||||||||||
Change in accrued capital expenditures | (3.8) | |||||||||||||||||||
Other non-cash contributions from Parent | 0.0 | |||||||||||||||||||
Other non-cash capital distributions to general partner | 0.0 | |||||||||||||||||||
Other non-cash contribution from general partner | $ 0.0 | |||||||||||||||||||
|
Related Party Transactions - Additional Information (Details) |
3 Months Ended | 6 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 29, 2016 |
Nov. 03, 2014
USD ($)
|
Jun. 30, 2017
USD ($)
credit_facility
|
Jun. 30, 2016
USD ($)
|
Mar. 31, 2016 |
Jun. 30, 2017
USD ($)
term
credit_facility
|
Jun. 30, 2016
USD ($)
|
Dec. 31, 2016 |
May 23, 2016 |
May 31, 2015 |
|||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Aggregate liability of SPLC | $ 10,700,000 | $ 10,700,000 | ||||||||||||||||
Statute of limitations expirations, number of days | 60 days | |||||||||||||||||
Revenue from related parties | 31,500,000 | [1] | $ 26,000,000 | [2] | 60,400,000 | [1] | $ 57,900,000 | [2] | ||||||||||
Gain (loss) from sale of excess allowance oil | 100,000 | 600,000 | 700,000 | 500,000 | ||||||||||||||
Transportation Services | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Revenue from related parties | 22,300,000 | 23,900,000 | 49,300,000 | 53,700,000 | ||||||||||||||
Storage Services | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Revenue from related parties | 1,500,000 | 2,100,000 | 3,400,000 | 4,200,000 | ||||||||||||||
Transportation Services Operating Leases | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Revenue from related parties | $ 7,700,000 | 0 | $ 7,700,000 | 0 | ||||||||||||||
Initial term | 10 years | |||||||||||||||||
Number of additional terms | term | 2 | |||||||||||||||||
Additional term | 5 years | |||||||||||||||||
Shell Treasury Center West Inc | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Number of credit facilities | credit_facility | 3 | 3 | ||||||||||||||||
Zydeco, Mars, Bengal, Poseidon and Colonial | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Total distributions to general partners | $ 86,700,000 | 69,300,000 | $ 177,700,000 | 128,800,000 | ||||||||||||||
SPLC | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
General and administrative - related parties | 3,100,000 | 2,900,000 | 5,000,000 | 5,400,000 | ||||||||||||||
General insurance expense | $ 1,300,000 | 1,500,000 | $ 3,000,000 | 3,100,000 | ||||||||||||||
Five Year Revolver | Shell Treasury Center West Inc | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Debt instrument term | 5 years | 5 years | 5 years | |||||||||||||||
Five Year Fixed Facility | Shell Treasury Center West Inc | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Debt instrument term | 5 years | |||||||||||||||||
364 Day Revolver | Shell Treasury Center West Inc | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Debt instrument term | 364 days | 364 days | 364 days | |||||||||||||||
SPLC | Zydeco Pipeline Company LLC (“Zydeco”) | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Noncontrolling Interest | 57.00% | 7.50% | 7.50% | 7.50% | 7.50% | 37.50% | ||||||||||||
Maximum | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Aggregate liability of SPLC | $ 15,000,000 | |||||||||||||||||
Shell Pipeline Company L P | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Payment of general and administrative fee | $ 8,500,000 | |||||||||||||||||
Zydeco Pipeline Company LLC (“Zydeco”) | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Total distributions to general partners | $ 41,600,000 | $ 25,000,000 | $ 81,400,000 | $ 45,600,000 | ||||||||||||||
|
Related Party Transactions - Schedule of Other Related Party Balances (Details) - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
|||
---|---|---|---|---|---|
Related Party Transaction [Line Items] | |||||
Accounts receivable | $ 23.0 | $ 12.1 | [1] | ||
Prepaid expenses | 2.3 | 3.2 | |||
Accounts payable | 11.4 | 5.4 | [1] | ||
Deferred revenue | 15.3 | 7.9 | [1] | ||
Accrued liabilities | 6.2 | 5.1 | [1] | ||
Debt payable – related party | 1,265.4 | 686.0 | [1] | ||
Lease liability | 0.0 | 24.9 | |||
Accrued interest, related parties | 5.6 | 2.6 | |||
Other accrued liabilities, related parties | 0.6 | 0.9 | |||
Fuel accrual, related parties | 1.6 | ||||
Unamortized debt issuance costs | 1.5 | 0.9 | |||
Affiliated Entity | |||||
Related Party Transaction [Line Items] | |||||
Unamortized debt issuance costs | $ 1.5 | $ 0.9 | |||
|
Related Party Transactions - Future Minimum Payments Receivable (Details) $ in Millions |
Jun. 30, 2017
USD ($)
|
---|---|
Related Party Transactions [Abstract] | |
Total | $ 455.3 |
Less than 1 year | 46.3 |
Years 2 to 3 | 92.6 |
Years 4 to 5 | 92.6 |
More than 5 years | $ 223.8 |
Related Party Transactions - Schedule of Condensed Combined Statement of Operations (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|||||||||
Related Party Transaction [Line Items] | ||||||||||||
Operations and maintenance – related parties | $ 7.1 | [1] | $ 7.4 | [2] | $ 18.2 | [1] | $ 15.1 | [2] | ||||
General and administrative – related parties | 8.2 | [1] | 7.6 | [2] | 16.6 | [1] | 14.9 | [2] | ||||
Management Agreement | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Payment for general administrative services | 2.0 | 1.9 | 4.0 | 3.9 | ||||||||
Omnibus Agreement | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Payment for general administrative services | $ 2.1 | $ 2.1 | $ 4.2 | $ 4.2 | ||||||||
|
Related Party Transactions - Pension and Retirement Savings Plans (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Related Party Transactions [Abstract] | ||||
Health and life insurance costs | $ 0.9 | $ 0.9 | $ 1.7 | $ 1.7 |
Defined contribution benefit plan costs | $ 0.3 | $ 0.4 | $ 0.6 | $ 0.7 |
Related Party Transactions - Reimbursements from Our General Partner (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Related Party Transaction [Line Items] | ||||
Reimbursement of Zydeco directional drill | $ 4.1 | $ 10.5 | ||
Refinery Gas Pipeline | ||||
Related Party Transaction [Line Items] | ||||
Reimbursement of Zydeco directional drill | 0.6 | 0.6 | ||
Zydeco Pipeline Company LLC (“Zydeco”) | ||||
Related Party Transaction [Line Items] | ||||
Reimbursement of Zydeco directional drill | $ 3.5 | $ 0.2 | $ 9.9 | $ 0.3 |
Equity Method Investments - Schedule of Equity Investments in Affiliates (Details) - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
|||
---|---|---|---|---|---|
Schedule of Equity Method Investments [Line Items] | |||||
Investment Amount | $ 255.1 | $ 262.4 | [1] | ||
Bengal | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership | 50.00% | 50.00% | |||
Investment Amount | $ 77.7 | $ 76.1 | |||
Odyssey | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership | 49.00% | 49.00% | |||
Investment Amount | $ 3.0 | $ 3.0 | |||
Mars | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership | 48.60% | 48.60% | |||
Investment Amount | $ 129.4 | $ 130.2 | |||
Poseidon | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership | 36.00% | 36.00% | |||
Investment Amount | $ 7.1 | $ 13.2 | |||
Proteus | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership | 10.00% | 10.00% | |||
Investment Amount | $ 17.9 | $ 19.1 | |||
Endymion | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership | 10.00% | 10.00% | |||
Investment Amount | $ 20.0 | $ 20.8 | |||
|
Equity Method Investments - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Dec. 31, 2016 |
|
Equity Method Investments and Joint Ventures [Abstract] | |||||
Unamortized basis differences included in equity investments | $ 29.1 | $ 29.1 | $ 30.9 | ||
Amortization expense (income) | $ 0.7 | $ 0.3 | $ 1.4 | $ 0.8 |
Equity Method Investments - Schedule of Equity Investments in Affiliates Balance Affected (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Distributions Received | $ 38.9 | $ 31.5 | $ 82.8 | $ 57.8 | ||||||||||||
Income from equity investments | 37.2 | [1] | 25.6 | [2] | 75.9 | [1] | 48.8 | [2] | ||||||||
Purchase price adjustment | 0.0 | 0.4 | [3] | 0.0 | [4] | |||||||||||
Bengal | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Distributions Received | 4.6 | 7.1 | 9.3 | 13.4 | ||||||||||||
Income from equity investments | 5.4 | 5.3 | 10.7 | 10.7 | ||||||||||||
Purchase price adjustment | 0.0 | 0.0 | ||||||||||||||
Odyssey | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Distributions Received | 4.5 | 8.7 | ||||||||||||||
Income from equity investments | 4.4 | 8.7 | ||||||||||||||
Purchase price adjustment | 0.0 | 0.0 | ||||||||||||||
Mars | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Distributions Received | 19.0 | 13.1 | 42.3 | 23.0 | ||||||||||||
Income from equity investments | 20.2 | 12.2 | 41.7 | 23.1 | ||||||||||||
Purchase price adjustment | 0.0 | 0.0 | ||||||||||||||
Poseidon | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Distributions Received | 9.2 | 11.3 | 19.3 | 21.4 | ||||||||||||
Income from equity investments | 6.4 | $ 8.1 | 13.2 | $ 15.0 | ||||||||||||
Purchase price adjustment | 0.0 | 0.0 | ||||||||||||||
Proteus | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Distributions Received | 0.8 | 1.7 | ||||||||||||||
Income from equity investments | 0.4 | 0.8 | ||||||||||||||
Purchase price adjustment | 0.0 | 0.3 | ||||||||||||||
Endymion | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Distributions Received | 0.8 | 1.5 | ||||||||||||||
Income from equity investments | 0.4 | 0.8 | ||||||||||||||
Purchase price adjustment | $ 0.0 | $ 0.1 | ||||||||||||||
|
Equity Method Investments - Summary of Income Statement Data for Equity Method Investments (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Bengal | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Total Revenues | $ 18.1 | $ 17.6 | $ 35.9 | $ 35.0 |
Total Operating Expenses | 7.1 | 7.1 | 14.3 | 13.5 |
Operating Income | 11.0 | 10.5 | 21.6 | 21.5 |
Net Income | 10.9 | 10.4 | 21.5 | 21.4 |
Odyssey | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Total Revenues | 9.9 | 19.7 | ||
Total Operating Expenses | 1.0 | 2.0 | ||
Operating Income | 8.9 | 17.7 | ||
Net Income | 8.9 | 17.7 | ||
Mars | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Total Revenues | 66.4 | 64.2 | 131.3 | 121.5 |
Total Operating Expenses | 24.3 | 20.5 | 44.2 | 39.0 |
Operating Income | 42.1 | 43.7 | 87.1 | 82.5 |
Net Income | 42.1 | 43.7 | 87.1 | 82.5 |
Poseidon | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Total Revenues | 28.5 | 32.0 | 57.4 | 59.4 |
Total Operating Expenses | 8.5 | 7.7 | 16.6 | 14.3 |
Operating Income | 20.0 | 24.3 | 40.8 | 45.1 |
Net Income | 18.6 | $ 23.0 | 38.0 | $ 42.7 |
Proteus | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Total Revenues | 7.3 | 15.2 | ||
Total Operating Expenses | 3.0 | 6.1 | ||
Operating Income | 4.3 | 9.1 | ||
Net Income | 4.0 | 8.5 | ||
Endymion | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Total Revenues | 8.5 | 17.1 | ||
Total Operating Expenses | 3.2 | 6.3 | ||
Operating Income | 5.3 | 10.8 | ||
Net Income | $ 4.8 | $ 10.0 |
Property, Plant and Equipment - Components of Property, Plant and Equipment (Details) - USD ($) $ in Millions |
6 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2017 |
Dec. 31, 2016 |
||||
Property Plant And Equipment [Line Items] | |||||
Operating Leased Assets, Cost | $ 163.4 | ||||
Land | 2.0 | $ 2.0 | |||
Building and improvements | 30.3 | 29.6 | |||
Pipeline and equipment | 899.9 | 895.7 | |||
Other | 17.5 | 16.9 | |||
Property, plant and equipment, gross | 949.7 | 944.2 | |||
Accumulated depreciation and amortization | (372.6) | (354.8) | |||
Property plant and equipment excluding construction in progress | 577.1 | 589.4 | |||
Construction in progress | 37.2 | 21.2 | |||
Property, plant and equipment, net | 614.3 | 610.6 | [1] | ||
Costs related to assets under capital lease | 22.8 | 22.8 | |||
Accumulated depreciation on assets under operating lease | 30.5 | ||||
Accumulated depreciation on assets under capital lease | $ 2.3 | $ 1.6 | |||
Building and Improvements | Minimum | |||||
Property Plant And Equipment [Line Items] | |||||
Property, plant and equipment, depreciable life | 10 years | ||||
Building and Improvements | Maximum | |||||
Property Plant And Equipment [Line Items] | |||||
Property, plant and equipment, depreciable life | 40 years | ||||
Pipeline and Equipment | Minimum | |||||
Property Plant And Equipment [Line Items] | |||||
Property, plant and equipment, depreciable life | 10 years | ||||
Pipeline and Equipment | Maximum | |||||
Property Plant And Equipment [Line Items] | |||||
Property, plant and equipment, depreciable life | 30 years | ||||
Other | Minimum | |||||
Property Plant And Equipment [Line Items] | |||||
Property, plant and equipment, depreciable life | 5 years | ||||
Other | Maximum | |||||
Property Plant And Equipment [Line Items] | |||||
Property, plant and equipment, depreciable life | 25 years | ||||
|
Property, Plant and Equipment - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||
Depreciation and amortization expense | $ 9.6 | [1] | $ 8.9 | [2] | $ 19.1 | [1],[3] | $ 18.0 | [2],[4] | ||||||||
|
Accrued Liabilities - Third Parties - Schedule of Accrued Liabilities (Details) - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
|||
---|---|---|---|---|---|
Payables and Accruals [Abstract] | |||||
Transportation, project engineering | $ 6.0 | $ 4.2 | |||
Property taxes | 4.5 | 0.6 | |||
Professional fees | 0.5 | 0.3 | |||
Other accrued liabilities | 2.5 | 1.8 | |||
Accrued liabilities - third parties | $ 13.5 | $ 6.9 | [1] | ||
|
Related Party Debt - Schedule of Consolidated Related Party Debt Obligations (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Mar. 01, 2017 |
Sep. 27, 2016 |
Mar. 29, 2016 |
Nov. 11, 2015 |
Jun. 29, 2015 |
May 12, 2015 |
Nov. 03, 2014 |
Mar. 31, 2016 |
Jun. 30, 2017 |
Dec. 31, 2016 |
|
Line Of Credit Facility [Line Items] | ||||||||||
Outstanding borrowing | $ 1,265,400,000 | $ 686,000,000 | ||||||||
Unamortized debt issuance costs | $ (1,500,000) | (900,000) | ||||||||
Five Year Fixed Facility, fixed rate, due March 1, 2022 | Shell Treasury Center West Inc | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Debt instrument term | 5 years | |||||||||
Five Year Revolver, variable rate, due October 31, 2019 | Shell Treasury Center West Inc | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Debt instrument term | 5 years | 5 years | 5 years | |||||||
364-Day Revolver, variable rate, due March 1, 2017 | Shell Treasury Center West Inc | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Debt instrument term | 364 days | 364 days | 364 days | |||||||
Fixed Facility | Five Year Fixed Facility, fixed rate, due March 1, 2022 | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Outstanding borrowing | $ 506,900,000 | 0 | ||||||||
Fixed Facility | Five Year Fixed Facility, fixed rate, due March 1, 2022 | Shell Treasury Center West Inc | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Line of credit facility maximum borrowing capacity | $ 600,000,000.0 | |||||||||
Debt instrument term | 5 years | 5 years | ||||||||
Remaining borrowing capacity | $ 93,100,000 | |||||||||
Revolving Credit Facility | Zydeco Pipeline Company LLC (“Zydeco”) | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Outstanding borrowing | 0 | 0 | ||||||||
Revolving Credit Facility | Zydeco Pipeline Company LLC (“Zydeco”) | Shell Treasury Center West Inc | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Line of credit facility maximum borrowing capacity | 30,000,000 | |||||||||
Revolving Credit Facility | Five Year Revolver, variable rate, due October 31, 2019 | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Outstanding borrowing | 760,000,000 | 686,900,000 | ||||||||
Revolving Credit Facility | Five Year Revolver, variable rate, due October 31, 2019 | Shell Treasury Center West Inc | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Line of credit facility maximum borrowing capacity | $ 300,000,000.0 | $ 760,000,000.0 | ||||||||
Debt instrument term | 5 years | 5 years | 5 years | 5 years | 5 years | |||||
Remaining borrowing capacity | $ 0 | |||||||||
Revolving Credit Facility | 364-Day Revolver, variable rate, due March 1, 2017 | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Outstanding borrowing | $ 0 | $ 0 | ||||||||
Revolving Credit Facility | 364-Day Revolver, variable rate, due March 1, 2017 | Shell Treasury Center West Inc | ||||||||||
Line Of Credit Facility [Line Items] | ||||||||||
Line of credit facility maximum borrowing capacity | $ 180,000,000.0 | |||||||||
Debt instrument term | 364 days | 364 days | 364 days |
Related Party Debt - Additional Information (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 10, 2017 |
Mar. 07, 2017 |
Mar. 01, 2017 |
Sep. 27, 2016 |
May 23, 2016 |
Mar. 29, 2016 |
Nov. 11, 2015 |
Jun. 29, 2015 |
May 12, 2015 |
Nov. 03, 2014 |
Aug. 06, 2014 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||||
Interest and fee expenses | $ 6,700,000 | $ 1,000,000 | $ 10,700,000 | $ 3,000,000 | ||||||||||||||||||
Repayments of debt | 0 | [1] | $ 410,000,000 | [2] | ||||||||||||||||||
Level 2 | ||||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||||
Long-term Debt, Gross | 1,266,900,000 | 1,266,900,000 | ||||||||||||||||||||
Long-term Debt, Fair Value | 1,286,700,000 | $ 1,286,700,000 | ||||||||||||||||||||
Revolving Credit Facility | Zydeco Pipeline Company LLC (“Zydeco”) | ||||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||||
Weighted average interest rate | 2.70% | |||||||||||||||||||||
Revolving Credit Facility | Zydeco Pipeline Company LLC (“Zydeco”) | STCW | ||||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||||
Line of credit facility maximum borrowing capacity | $ 30,000,000.0 | |||||||||||||||||||||
Line of credit facility, expiration period | 6 months | |||||||||||||||||||||
Shell Treasury Center West Inc | Five Year Revolver, variable rate, due October 31, 2019 | ||||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||||
Debt instrument term | 5 years | 5 years | 5 years | |||||||||||||||||||
Shell Treasury Center West Inc | Five Year Fixed Facility, fixed rate, due March 1, 2022 | ||||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||||
Debt instrument term | 5 years | |||||||||||||||||||||
Shell Treasury Center West Inc | 364-Day Revolver, variable rate, due March 1, 2017 | ||||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||||
Debt instrument term | 364 days | 364 days | 364 days | |||||||||||||||||||
Repayments of debt | $ 137,400,000 | |||||||||||||||||||||
Shell Treasury Center West Inc | Fixed Facility | Five Year Fixed Facility, fixed rate, due March 1, 2022 | ||||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||||
Debt instrument term | 5 years | 5 years | ||||||||||||||||||||
Line of credit facility maximum borrowing capacity | 600,000,000.0 | $ 600,000,000.0 | ||||||||||||||||||||
Issuance fee paid | $ 700,000 | |||||||||||||||||||||
Fixed interest rate | 3.23% | |||||||||||||||||||||
Shell Treasury Center West Inc | Fixed Facility | Five Year Fixed Facility, fixed rate, due March 1, 2022 | STCW | ||||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||||
Line of credit facility maximum borrowing capacity | $ 600,000,000.0 | |||||||||||||||||||||
Shell Treasury Center West Inc | Revolving Credit Facility | Zydeco Pipeline Company LLC (“Zydeco”) | ||||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||||
Line of credit facility maximum borrowing capacity | 30,000,000 | $ 30,000,000 | ||||||||||||||||||||
Shell Treasury Center West Inc | Revolving Credit Facility | Five Year Revolver, variable rate, due October 31, 2019 | ||||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||||
Debt instrument term | 5 years | 5 years | 5 years | 5 years | 5 years | |||||||||||||||||
Repayments of debt | $ 272,600,000 | |||||||||||||||||||||
Line of credit facility maximum borrowing capacity | $ 300,000,000.0 | $ 760,000,000.0 | $ 760,000,000.0 | |||||||||||||||||||
Shell Treasury Center West Inc | Revolving Credit Facility | 364-Day Revolver, variable rate, due March 1, 2017 | ||||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||||
Debt instrument term | 364 days | 364 days | 364 days | |||||||||||||||||||
Line of credit facility maximum borrowing capacity | $ 180,000,000.0 | |||||||||||||||||||||
Shell Treasury Center West Inc | Revolving Credit Facility | 364-Day Revolver, variable rate, due March 1, 2017 | STCW | ||||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||||
Line of credit facility maximum borrowing capacity | $ 100,000,000.0 | |||||||||||||||||||||
Shell Treasury Center West Inc | Revolving Credit Facility | Amended And Restated Revolver | ||||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||||
Line of credit facility maximum borrowing capacity | $ 760,000,000.0 | $ 400,000,000.0 | ||||||||||||||||||||
Issuance fee paid | $ 600,000 | |||||||||||||||||||||
Weighted average interest rate | 2.40% | |||||||||||||||||||||
May 2017 Acquisition | ||||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||||
Consideration, cash on hand | $ 50,000,000 | |||||||||||||||||||||
May 2017 Acquisition | Shell Treasury Center West Inc | Five Year Revolver, variable rate, due October 31, 2019 | ||||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||||
Debt instrument term | 5 years | |||||||||||||||||||||
May 2017 Acquisition | Shell Treasury Center West Inc | Five Year Fixed Facility, fixed rate, due March 1, 2022 | ||||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||||
Debt instrument term | 5 years | |||||||||||||||||||||
May 2017 Acquisition | Shell Treasury Center West Inc | Fixed Facility | Five Year Fixed Facility, fixed rate, due March 1, 2022 | ||||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||||
Consideration, funded with borrowings | $ 506,900,000 | |||||||||||||||||||||
Debt instrument term | 5 years | |||||||||||||||||||||
May 2017 Acquisition | Shell Treasury Center West Inc | Revolving Credit Facility | Five Year Revolver, variable rate, due October 31, 2019 | ||||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||||
Consideration, funded with borrowings | $ 73,100,000 | |||||||||||||||||||||
Debt instrument term | 5 years | |||||||||||||||||||||
May 2016 Acquisition | ||||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||||
Consideration, cash on hand | $ 50,400,000 | |||||||||||||||||||||
May 2016 Acquisition | Shell Treasury Center West Inc | Five Year Revolver, variable rate, due October 31, 2019 | ||||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||||
Debt instrument term | 5 years | |||||||||||||||||||||
May 2016 Acquisition | Shell Treasury Center West Inc | Revolving Credit Facility | Five Year Revolver, variable rate, due October 31, 2019 | ||||||||||||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||||||||||||
Consideration, funded with borrowings | $ 296,700,000 | |||||||||||||||||||||
Debt instrument term | 5 years | |||||||||||||||||||||
|
Equity - At-the-Market Program (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 09, 2016 |
Mar. 29, 2016 |
Mar. 02, 2016 |
Jun. 30, 2017 |
Mar. 31, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
[2] | ||||||
Class of Stock [Line Items] | |||||||||||||
Issuance of common units, maximum (in units) | $ 300,000,000 | ||||||||||||
Consideration for units issued in connection with private placement | $ 100,000 | [1] | $ 9,800,000 | ||||||||||
Aggregate percentage of general partner interest | 2.00% | ||||||||||||
Shell Treasury Center West Inc | Five Year Revolver | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Debt instrument term | 5 years | 5 years | 5 years | ||||||||||
Shell Treasury Center West Inc | 364 Day Revolver | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Debt instrument term | 364 days | 364 days | 364 days | ||||||||||
Common Units | General Public | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Units issued in connection with private placement (in units) | 94,925 | 750,000 | |||||||||||
Net proceeds from public offerings | $ 2,900,000 | $ 25,400,000 | |||||||||||
Gross proceed issuance of private placement offering | $ 3,000,000 | $ 25,500,000 | |||||||||||
Common units per share (in units per share) | $ 33.25 | $ 31.75 | $ 31.51 | $ 34.00 | $ 31.51 | ||||||||
Placement fees | $ 100,000 | $ 200,000 | $ 100,000 | $ 100,000 | |||||||||
General Partner | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Units issued in connection with private placement (in units) | 1,938 | 15,307 | |||||||||||
Consideration for units issued in connection with private placement | $ 1,100,000 | $ 8,200,000 | $ 100,000 | $ 500,000 | |||||||||
Aggregate percentage of general partner interest | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | ||||||||
|
Equity - Public Offering (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 09, 2016 |
May 23, 2016 |
Mar. 29, 2016 |
Jun. 30, 2017 |
Mar. 31, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
[3] | ||||||||
Class of Stock [Line Items] | |||||||||||||||
Units issued in connection with public offering (in units) | 96,863 | ||||||||||||||
Net proceeds from public offering | [1] | $ 3.0 | |||||||||||||
Consideration for units issued in connection with private placement | $ 0.1 | [2] | $ 9.8 | ||||||||||||
Aggregate percentage of general partner interest | 2.00% | ||||||||||||||
Shell Treasury Center West Inc | Five Year Revolver | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Debt instrument term | 5 years | 5 years | 5 years | ||||||||||||
Shell Treasury Center West Inc | Five Year Revolver | May 2016 Acquisition | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Debt instrument term | 5 years | ||||||||||||||
Shell Treasury Center West Inc | 364 Day Revolver | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Debt instrument term | 364 days | 364 days | 364 days | ||||||||||||
Common Units | May 2016 Acquisition | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Units issued in connection with public offering (in units) | 10,500,000 | ||||||||||||||
Net proceeds from public offering | $ 345.8 | ||||||||||||||
Common Units | General Public | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Units issued in connection with public offering (in units) | 1,575,000 | 12,650,000 | 94,925 | ||||||||||||
Net proceeds from public offering | $ 51.8 | $ 395.1 | |||||||||||||
Gross proceeds from public offering | $ 52.4 | $ 401.6 | |||||||||||||
Common units per share (in units per share) | $ 33.25 | $ 31.75 | $ 31.51 | $ 34.00 | $ 31.51 | ||||||||||
Underwriter fees | $ 0.5 | $ 6.3 | |||||||||||||
Placement fees | $ 0.1 | $ 0.2 | $ 0.1 | $ 0.1 | |||||||||||
Common Units | General Public | May 2016 Acquisition | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Units issued in connection with public offering (in units) | 10,500,000 | ||||||||||||||
Net proceeds from public offering | $ 345.8 | ||||||||||||||
Gross proceeds from public offering | $ 349.1 | ||||||||||||||
Common units per share (in units per share) | $ 33.25 | ||||||||||||||
Underwriter fees | $ 2.9 | ||||||||||||||
Placement fees | $ 0.4 | ||||||||||||||
General Partner | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Units issued in connection with public offering (in units) | 32,143 | 258,163 | 1,938 | ||||||||||||
Consideration for units issued in connection with private placement | $ 1.1 | $ 8.2 | $ 0.1 | $ 0.5 | |||||||||||
Aggregate percentage of general partner interest | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | ||||||||||
General Partner | May 2016 Acquisition | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Units issued in connection with public offering (in units) | 214,285 | ||||||||||||||
Consideration for units issued in connection with private placement | $ 7.1 | ||||||||||||||
Aggregate percentage of general partner interest | 2.00% | ||||||||||||||
|
Equity - Units Outstanding (Details) - shares |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 09, 2016 |
Mar. 29, 2016 |
Jun. 30, 2017 |
Mar. 31, 2016 |
Jun. 30, 2017 |
Dec. 31, 2016 |
|
Class of Stock [Line Items] | ||||||
Limited partners' capital account, units outstanding (in units) | 177,412,369 | 177,412,369 | ||||
Capital units, publicly owned (in units) | 181,033,030 | 181,033,030 | 180,936,167 | |||
Ownership interest (in percentage) | 49.10% | |||||
Aggregate percentage of general partner interest | 2.00% | |||||
General Partner | ||||||
Class of Stock [Line Items] | ||||||
Capital units, publicly owned (in units) | 3,620,661 | 3,620,661 | 3,618,723 | |||
Aggregate percentage of general partner interest | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | |
General Public | Common Units | ||||||
Class of Stock [Line Items] | ||||||
Limited partners' capital account, units outstanding (in units) | 88,462,233 | 88,462,233 | 88,367,308 | |||
Capital units, publicly owned (in units) | 88,462,233 | 88,462,233 | 88,367,308 | |||
Shell Pipeline Company L P | Common Units | ||||||
Class of Stock [Line Items] | ||||||
Limited partners' capital account, units outstanding (in units) | 88,950,136 | 88,950,136 | 21,475,068 | |||
Capital units, publicly owned (in units) | 88,950,136 | 88,950,136 | 21,475,068 |
Equity - Schedule of Number of Units Outstanding (Details) - shares |
6 Months Ended | |||
---|---|---|---|---|
Jun. 09, 2016 |
May 23, 2016 |
Mar. 29, 2016 |
Jun. 30, 2017 |
|
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Beginning balance (in units) | 180,936,167 | |||
Expiration of subordination period (in units) | 0 | |||
Units issued in connection with ATM program (in units) | 96,863 | |||
Ending balance (in units) | 181,033,030 | |||
General Partner | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Beginning balance (in units) | 3,618,723 | |||
Expiration of subordination period (in units) | 0 | |||
Units issued in connection with ATM program (in units) | 32,143 | 258,163 | 1,938 | |
Ending balance (in units) | 3,620,661 | |||
General Public | Common Units | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Beginning balance (in units) | 88,367,308 | |||
Expiration of subordination period (in units) | 0 | |||
Units issued in connection with ATM program (in units) | 1,575,000 | 12,650,000 | 94,925 | |
Ending balance (in units) | 88,462,233 | |||
Shell Pipeline Company L P | Common Units | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Beginning balance (in units) | 21,475,068 | |||
Expiration of subordination period (in units) | 67,475,068 | |||
Units issued in connection with ATM program (in units) | 0 | |||
Ending balance (in units) | 88,950,136 | |||
Shell Pipeline Company L P | Subordinated Units | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Beginning balance (in units) | 67,475,068 | |||
Expiration of subordination period (in units) | (67,475,068) | |||
Units issued in connection with ATM program (in units) | 0 | |||
Ending balance (in units) | 0 |
Equity - Expiration of Subordination Period (Details) - Common units – public |
Feb. 15, 2017
shares
|
---|---|
Class of Stock [Line Items] | |
Shares converted (in shares) | 67,475,068 |
Conversion ratio (in common units per subordinated units) | 1 |
Equity - Schedule of Distributions Declared and/or Paid (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 09, 2016 |
Mar. 29, 2016 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Jun. 30, 2017 |
Jun. 30, 2016 |
[2] | ||||||||
Distribution Made To Limited Partner [Line Items] | |||||||||||||||||||
Aggregate percentage of general partner interest | 2.00% | ||||||||||||||||||
Distributions declared and/or paid | $ 68.2 | $ 63.6 | $ 58.6 | $ 53.9 | $ 49.0 | $ 41.7 | $ 35.3 | ||||||||||||
Distributions paid per limited partner unit (in dollars per unit) | $ 0.30410 | [1] | $ 0.291 | $ 0.27700 | $ 0.26375 | $ 0.2500 | [2] | $ 0.2350 | $ 0.2200 | $ 0.5951 | [1] | $ 0.4850 | |||||||
Shell Pipeline Company L P | |||||||||||||||||||
Distribution Made To Limited Partner [Line Items] | |||||||||||||||||||
Distributions declared and/or paid | $ 0.0 | $ 0.0 | $ 18.7 | $ 17.8 | $ 16.9 | $ 15.8 | $ 14.8 | ||||||||||||
Common Units | General Public | |||||||||||||||||||
Distribution Made To Limited Partner [Line Items] | |||||||||||||||||||
Distributions declared and/or paid | 26.9 | 25.7 | 24.5 | 23.3 | 22.0 | 17.9 | 13.9 | ||||||||||||
Common Units | Shell Pipeline Company L P | |||||||||||||||||||
Distribution Made To Limited Partner [Line Items] | |||||||||||||||||||
Distributions declared and/or paid | $ 27.0 | 25.9 | 5.9 | 5.7 | 5.4 | $ 5.1 | 4.7 | ||||||||||||
General Partner | |||||||||||||||||||
Distribution Made To Limited Partner [Line Items] | |||||||||||||||||||
Aggregate percentage of general partner interest | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | ||||||||||||||
Distributions declared and/or paid | $ 1.4 | 1.3 | 1.2 | 1.1 | 1.0 | $ 0.9 | 0.7 | ||||||||||||
General Partner | IDR's | |||||||||||||||||||
Distribution Made To Limited Partner [Line Items] | |||||||||||||||||||
Distributions declared and/or paid | $ 12.9 | $ 10.7 | $ 8.3 | $ 6.0 | $ 3.7 | $ 2.0 | $ 1.2 | ||||||||||||
|
Equity - Distributions to Noncontrolling Interest (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Zydeco Pipeline Company LLC (“Zydeco”) | ||||
Class of Stock [Line Items] | ||||
Distributions to noncontrolling interest | $ 3.4 | $ 2.0 | $ 6.6 | $ 14.4 |
Net Income Per Limited Partner Unit - Schedule of Allocation of Net Income to Arrive at Net Income Per Limited Partner Unit (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|||||||||||||||
Limited Partners Capital Account [Line Items] | ||||||||||||||||||
Net income | $ 68.7 | [1] | $ 70.9 | [2] | $ 143.7 | [1],[3],[4] | $ 142.7 | [2],[5] | ||||||||||
Less: Net income attributable to noncontrolling interests | 1.0 | [1] | 4.6 | [2] | 3.0 | [1] | 8.4 | [2] | ||||||||||
Less: Net income attributable to noncontrolling interests | 2.2 | [1] | 2.5 | [2] | 4.4 | [1] | 15.2 | [2] | ||||||||||
Net income attributable to the Partnership | 65.5 | [1] | 63.8 | [2] | 136.3 | [1] | 119.1 | [2] | ||||||||||
Distribution declared | 68.2 | 49.0 | 131.8 | 90.7 | ||||||||||||||
Income (less than) / in excess of distributions | (2.7) | 14.8 | 4.5 | 28.4 | ||||||||||||||
General Partner | ||||||||||||||||||
Limited Partners Capital Account [Line Items] | ||||||||||||||||||
Net income attributable to the Partnership | 14.3 | 5.0 | 26.4 | 8.1 | ||||||||||||||
Distribution declared | 14.3 | 4.7 | 26.3 | 7.6 | ||||||||||||||
Income (less than) / in excess of distributions | 0.0 | 0.3 | 0.1 | 0.5 | ||||||||||||||
Limited Partners' Common Units | ||||||||||||||||||
Limited Partners Capital Account [Line Items] | ||||||||||||||||||
Net income attributable to the Partnership | 51.2 | 36.1 | 109.9 | 66.6 | ||||||||||||||
Distribution declared | 53.9 | 27.4 | 105.5 | 50.4 | ||||||||||||||
Income (less than) / in excess of distributions | (2.7) | 8.7 | 4.4 | 16.2 | ||||||||||||||
Limited Partner's Subordinated Units | ||||||||||||||||||
Limited Partners Capital Account [Line Items] | ||||||||||||||||||
Net income attributable to the Partnership | 22.7 | 44.4 | ||||||||||||||||
Distribution declared | $ 0.0 | 16.9 | $ 0.0 | 32.7 | ||||||||||||||
Income (less than) / in excess of distributions | $ 5.8 | $ 11.7 | ||||||||||||||||
|
Net Income Per Limited Partner Unit - Schedule of Basic and Diluted Net Income Per Unit (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|||||||||
Distribution Made To Limited Partner [Line Items] | ||||||||||||
Distribution declared | $ 68.2 | $ 49.0 | $ 131.8 | $ 90.7 | ||||||||
Income in excess of distributions | (2.7) | 14.8 | 4.5 | 28.4 | ||||||||
Net income attributable to the Partnership | 65.5 | [1] | 63.8 | [2] | 136.3 | [1] | 119.1 | [2] | ||||
General Partner | ||||||||||||
Distribution Made To Limited Partner [Line Items] | ||||||||||||
Distribution declared | 14.3 | 4.7 | 26.3 | 7.6 | ||||||||
Income in excess of distributions | 0.0 | 0.3 | 0.1 | 0.5 | ||||||||
Net income attributable to the Partnership | 14.3 | 5.0 | 26.4 | 8.1 | ||||||||
Limited Partners' Common Units | ||||||||||||
Distribution Made To Limited Partner [Line Items] | ||||||||||||
Distribution declared | 53.9 | 27.4 | 105.5 | 50.4 | ||||||||
Income in excess of distributions | (2.7) | 8.7 | 4.4 | 16.2 | ||||||||
Net income attributable to the Partnership | $ 51.2 | $ 36.1 | $ 109.9 | $ 66.6 | ||||||||
Weighted average units outstanding (in millions): | ||||||||||||
Weighted average units outstanding, basic and diluted (in shares) | 177.4 | 102.6 | 177.3 | 93.8 | ||||||||
Net income per Limited Partner Unit (in dollars): | ||||||||||||
Net income per Limited Partner Unit, basic and diluted (in dollars per share) | $ 0.29 | [1] | $ 0.35 | [2] | $ 0.62 | [1] | $ 0.71 | [2] | ||||
Limited Partner's Subordinated Units | ||||||||||||
Distribution Made To Limited Partner [Line Items] | ||||||||||||
Distribution declared | $ 0.0 | $ 16.9 | $ 0.0 | $ 32.7 | ||||||||
Income in excess of distributions | 5.8 | 11.7 | ||||||||||
Net income attributable to the Partnership | $ 22.7 | $ 44.4 | ||||||||||
Weighted average units outstanding (in millions): | ||||||||||||
Weighted average units outstanding, basic and diluted (in shares) | 67.5 | 67.5 | ||||||||||
Net income per Limited Partner Unit (in dollars): | ||||||||||||
Net income per Limited Partner Unit, basic and diluted (in dollars per share) | $ 0.00 | [1] | $ 0.34 | [2] | $ 0.00 | [1] | $ 0.66 | [2] | ||||
|
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income tax expense | $ 0.0 | [1] | $ 0.0 | [2] | $ 0.0 | [1] | $ 0.0 | [2] | ||||
|
Commitments and Contingencies (Details) - USD ($) $ in Millions |
Sep. 01, 2016 |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|---|
Commitments and Contingencies Disclosure [Abstract] | |||
Accrual for Environmental Loss Contingencies | $ 0.0 | $ 0.0 | |
Tariff monthly payment | $ 0.4 | ||
Initial term | 10 years | ||
Renewal term | 1 year |
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 01, 2017 |
Jul. 19, 2017 |
Jun. 30, 2017 |
[1] | Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
[2] | Mar. 31, 2016 |
Dec. 31, 2015 |
Jun. 30, 2017 |
[1] | Jun. 30, 2016 |
[2] | |||||
Subsequent Event [Line Items] | |||||||||||||||||||
Distributions paid per limited partner unit (in dollars per unit) | $ 0.30410 | $ 0.291 | $ 0.27700 | $ 0.26375 | $ 0.2500 | $ 0.2350 | $ 0.2200 | $ 0.5951 | $ 0.4850 | ||||||||||
Subsequent Event | |||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||
Distributions paid per limited partner unit (in dollars per unit) | $ 0.3041 | ||||||||||||||||||
Subsequent Event | Crestwood Basin Interest | |||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||
Ownership | 50.00% | ||||||||||||||||||
Payment for equity interest | $ 47.0 | ||||||||||||||||||
|
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