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 |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Large accelerated filer | ☐ | ☒ | ||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||
Emerging growth company | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(unaudited; in thousands of US dollars, except per unit amounts) | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Terminalling services | $ | $ | $ | $ | |||||||||||||||||||
Terminalling services — related party | |||||||||||||||||||||||
Fleet leases — related party | |||||||||||||||||||||||
Fleet services | |||||||||||||||||||||||
Fleet services — related party | |||||||||||||||||||||||
Freight and other reimbursables | |||||||||||||||||||||||
Freight and other reimbursables — related party | |||||||||||||||||||||||
Total revenues | |||||||||||||||||||||||
Operating costs | |||||||||||||||||||||||
Subcontracted rail services | |||||||||||||||||||||||
Pipeline fees | |||||||||||||||||||||||
Freight and other reimbursables | |||||||||||||||||||||||
Operating and maintenance | |||||||||||||||||||||||
Operating and maintenance — related party | |||||||||||||||||||||||
Selling, general and administrative | |||||||||||||||||||||||
Selling, general and administrative — related party | |||||||||||||||||||||||
Goodwill impairment loss | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Total operating costs | |||||||||||||||||||||||
Operating income (loss) | ( | ||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Loss associated with derivative instruments | |||||||||||||||||||||||
Foreign currency transaction loss (gain) | ( | ||||||||||||||||||||||
Other income, net | ( | ( | ( | ( | |||||||||||||||||||
Income (loss) before income taxes | ( | ||||||||||||||||||||||
Provision for (benefit from) income taxes | ( | ( | |||||||||||||||||||||
Net income (loss) | $ | $ | $ | ( | $ | ||||||||||||||||||
Net income (loss) attributable to limited partner interests | $ | $ | $ | ( | $ | ||||||||||||||||||
Net income (loss) per common unit (basic and diluted) | $ | $ | $ | ( | $ | ||||||||||||||||||
Weighted average common units outstanding | |||||||||||||||||||||||
Net income (loss) per subordinated unit (basic and diluted) | $ | $ | $ | ( | $ | ||||||||||||||||||
Weighted average subordinated units outstanding |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(unaudited; in thousands of US dollars) | |||||||||||||||||||||||
Net income (loss) | $ | $ | $ | ( | $ | ||||||||||||||||||
Other comprehensive income (loss) — foreign currency translation | ( | ( | |||||||||||||||||||||
Comprehensive income (loss) | $ | $ | $ | ( | $ |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
(unaudited; in thousands of US dollars) | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | ( | $ | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Loss associated with derivative instruments | |||||||||||
Settlement of derivative contracts | ( | ||||||||||
Unit based compensation expense | |||||||||||
Deferred income taxes | ( | ( | |||||||||
Other | |||||||||||
Goodwill impairment loss | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | |||||||||||
Accounts receivable — related party | ( | ( | |||||||||
Prepaid expenses and other assets | ( | ||||||||||
Other assets — related party | ( | ( | |||||||||
Accounts payable and accrued expenses | ( | ( | |||||||||
Accounts payable and accrued expenses — related party | ( | ||||||||||
Deferred revenue and other liabilities | |||||||||||
Deferred revenue — related party | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Additions of property and equipment | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Distributions | ( | ( | |||||||||
Payments for deferred financing costs | ( | ||||||||||
Vested phantom units used for payment of participant taxes | ( | ( | |||||||||
Proceeds from long-term debt | |||||||||||
Repayments of long-term debt | ( | ( | |||||||||
Other financing activities | ( | ||||||||||
Net cash used in financing activities | ( | ( | |||||||||
Effect of exchange rates on cash | |||||||||||
Net change in cash, cash equivalents and restricted cash | |||||||||||
Cash, cash equivalents and restricted cash — beginning of period | |||||||||||
Cash, cash equivalents and restricted cash — end of period | $ | $ |
September 30, 2020 | December 31, 2019 | ||||||||||
(unaudited; in thousands of US dollars, except unit amounts) | |||||||||||
ASSETS | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Accounts receivable, net | |||||||||||
Accounts receivable — related party | |||||||||||
Prepaid expenses | |||||||||||
Other current assets | |||||||||||
Other current assets — related party | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Intangible assets, net | |||||||||||
Goodwill | |||||||||||
Operating lease right-of-use assets | |||||||||||
Other non-current assets | |||||||||||
Other non-current assets — related party | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND PARTNERS’ CAPITAL | |||||||||||
Current liabilities | |||||||||||
Accounts payable and accrued expenses | $ | $ | |||||||||
Accounts payable and accrued expenses — related party | |||||||||||
Deferred revenue | |||||||||||
Deferred revenue — related party | |||||||||||
Operating lease liabilities, current | |||||||||||
Other current liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term debt, net | |||||||||||
Deferred income tax liabilities, net | |||||||||||
Operating lease liabilities, non-current | |||||||||||
Other non-current liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies | |||||||||||
Partners’ capital | |||||||||||
Common units ( | ( | ||||||||||
Subordinated units ( | ( | ||||||||||
General partner units ( December 31, 2019) | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total partners’ capital | ( | ||||||||||
Total liabilities and partners’ capital | $ | $ |
Three Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
Units | Amount | Units | Amount | ||||||||||||||||||||
(unaudited; in thousands of US dollars, except unit amounts) | |||||||||||||||||||||||
Common units | |||||||||||||||||||||||
Beginning balance at July 1, | $ | ( | $ | ||||||||||||||||||||
Common units issued for vested phantom units | ( | ( | |||||||||||||||||||||
Net income | — | — | |||||||||||||||||||||
Unit based compensation expense | — | — | |||||||||||||||||||||
Distributions | — | ( | — | ( | |||||||||||||||||||
Ending balance at September 30, | ( | ||||||||||||||||||||||
Subordinated units | |||||||||||||||||||||||
Beginning balance at July 1, | ( | ||||||||||||||||||||||
Net income | — | — | |||||||||||||||||||||
Distributions | — | — | ( | ||||||||||||||||||||
Ending balance at September 30, | ( | ||||||||||||||||||||||
General Partner units | |||||||||||||||||||||||
Beginning balance at July 1, | |||||||||||||||||||||||
Net income | — | — | |||||||||||||||||||||
Distributions | — | ( | — | ( | |||||||||||||||||||
Ending balance at September 30, | |||||||||||||||||||||||
Accumulated other comprehensive loss | |||||||||||||||||||||||
Beginning balance at July 1, | ( | ( | |||||||||||||||||||||
Cumulative translation adjustment | ( | ||||||||||||||||||||||
Ending balance at September 30, | ( | ( | |||||||||||||||||||||
Total partners’ capital at September 30, | $ | ( | $ |
Nine Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
Units | Amount | Units | Amount | ||||||||||||||||||||
(unaudited; in thousands of US dollars, except unit amounts) | |||||||||||||||||||||||
Common units | |||||||||||||||||||||||
Beginning balance at January 1, | $ | $ | |||||||||||||||||||||
Conversion of units | ( | ( | |||||||||||||||||||||
Common units issued for vested phantom units | ( | ( | |||||||||||||||||||||
Net income (loss) | — | ( | — | ||||||||||||||||||||
Unit based compensation expense | — | — | |||||||||||||||||||||
Distributions | — | ( | — | ( | |||||||||||||||||||
Ending balance at September 30, | ( | ||||||||||||||||||||||
Class A units | |||||||||||||||||||||||
Beginning balance at January 1, | |||||||||||||||||||||||
Conversion of units | ( | ( | |||||||||||||||||||||
Unit based compensation expense | — | — | |||||||||||||||||||||
Distributions | — | — | ( | ||||||||||||||||||||
Ending balance at September 30, | |||||||||||||||||||||||
Subordinated units | |||||||||||||||||||||||
Beginning balance at January 1, | ( | ( | |||||||||||||||||||||
Conversion of units | ( | ( | |||||||||||||||||||||
Net income (loss) | — | ( | — | ||||||||||||||||||||
Unit based compensation expense | — | — | |||||||||||||||||||||
Distributions | — | ( | — | ( | |||||||||||||||||||
Ending balance at September 30, | ( | ||||||||||||||||||||||
General Partner units | |||||||||||||||||||||||
Beginning balance at January 1, | |||||||||||||||||||||||
Net income (loss) | — | ( | — | ||||||||||||||||||||
Unit based compensation expense | — | — | |||||||||||||||||||||
Distributions | — | ( | — | ( | |||||||||||||||||||
Ending balance at September 30, | |||||||||||||||||||||||
Accumulated other comprehensive loss | |||||||||||||||||||||||
Beginning balance at January 1, | ( | ( | |||||||||||||||||||||
Cumulative translation adjustment | ( | ||||||||||||||||||||||
Ending balance at September 30, | ( | ( | |||||||||||||||||||||
Total partners’ capital at September 30, | $ | ( | $ |
Distribution Targets | Portion of Quarterly Distribution Per Unit | Percentage Distributed to Limited Partners | Percentage Distributed to General Partner (including IDRs) (1) | |||||||||||||||||
Minimum Quarterly Distribution | Up to $0.2875 | |||||||||||||||||||
First Target Distribution | > $0.2875 to $0.330625 | |||||||||||||||||||
Second Target Distribution | > $0.330625 to $0.359375 | |||||||||||||||||||
Third Target Distribution | > $0.359375 to $0.431250 | |||||||||||||||||||
Thereafter | Amounts above $0.431250 |
For the Three Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||
Common Units | Subordinated Units (7) | Class A Units (7) | General Partner Units | Total | ||||||||||||||||||||||||||||
(in thousands, except per unit amounts) | ||||||||||||||||||||||||||||||||
Net income attributable to general and limited partner interests in USD Partners LP (1) | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Less: Distributable earnings (2) | ||||||||||||||||||||||||||||||||
Excess net income | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Weighted average units outstanding (3) | ||||||||||||||||||||||||||||||||
Distributable earnings per unit (4) | $ | $ | $ | |||||||||||||||||||||||||||||
Underdistributed earnings per unit (5) | ||||||||||||||||||||||||||||||||
Net income per limited partner unit (basic and diluted) (6) | $ | $ | $ |
For the Three Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||
Common Units | Subordinated Units | Class A Units (7) | General Partner Units | Total | ||||||||||||||||||||||||||||
(in thousands, except per unit amounts) | ||||||||||||||||||||||||||||||||
Net income attributable to general and limited partner interests in USD Partners LP (1) | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Less: Distributable earnings (2) | ||||||||||||||||||||||||||||||||
Distributions in excess of earnings | $ | ( | $ | ( | $ | $ | ( | $ | ( | |||||||||||||||||||||||
Weighted average units outstanding (3) | ||||||||||||||||||||||||||||||||
Distributable earnings per unit (4) | $ | $ | $ | |||||||||||||||||||||||||||||
Overdistributed earnings per unit (5) | ( | ( | ||||||||||||||||||||||||||||||
Net income per limited partner unit (basic and diluted) (6) | $ | $ | $ |
For the Nine Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||
Common Units | Subordinated Units (7) | Class A Units (7) | General Partner Units | Total | ||||||||||||||||||||||||||||
(in thousands, except per unit amounts) | ||||||||||||||||||||||||||||||||
Net loss attributable to general and limited partner interests in USD Partners LP (1) | $ | ( | $ | ( | $ | $ | ( | $ | ( | |||||||||||||||||||||||
Less: Distributable earnings (2) | ||||||||||||||||||||||||||||||||
Distributions in excess of earnings | $ | ( | $ | ( | $ | $ | ( | $ | ( | |||||||||||||||||||||||
Weighted average units outstanding (3) | ||||||||||||||||||||||||||||||||
Distributable earnings per unit (4) | $ | $ | $ | |||||||||||||||||||||||||||||
Overdistributed earnings per unit (5) | ( | ( | ||||||||||||||||||||||||||||||
Net loss per limited partner unit (basic and diluted) (6) | $ | ( | $ | ( | $ |
For the Nine Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||
Common Units | Subordinated Units | Class A Units (7) | General Partner Units | Total | ||||||||||||||||||||||||||||
(in thousands, except per unit amounts) | ||||||||||||||||||||||||||||||||
Net income attributable to general and limited partner interests in USD Partners LP (1) | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Less: Distributable earnings (2) | ||||||||||||||||||||||||||||||||
Distributions in excess of earnings | $ | ( | $ | ( | $ | $ | ( | $ | ( | |||||||||||||||||||||||
Weighted average units outstanding (3) | ||||||||||||||||||||||||||||||||
Distributable earnings per unit (4) | $ | $ | $ | |||||||||||||||||||||||||||||
Overdistributed earnings per unit (5) | ( | ( | ||||||||||||||||||||||||||||||
Net income per limited partner unit (basic and diluted)(6) | $ | $ | $ |
Three Months Ended September 30, 2020 | |||||||||||||||||
U.S. | Canada | Total | |||||||||||||||
(in thousands) | |||||||||||||||||
Third party | $ | $ | $ | ||||||||||||||
Related party | $ | $ | $ |
Three Months Ended September 30, 2019 | |||||||||||||||||
U.S. | Canada | Total | |||||||||||||||
(in thousands) | |||||||||||||||||
Third party | $ | $ | $ | ||||||||||||||
Related party | $ | $ | $ |
Nine Months Ended September 30, 2020 | |||||||||||||||||
U.S. | Canada | Total | |||||||||||||||
(in thousands) | |||||||||||||||||
Third party | $ | $ | $ | ||||||||||||||
Related party | $ | $ | $ |
Nine Months Ended September 30, 2019 | |||||||||||||||||
U.S. | Canada | Total | |||||||||||||||
(in thousands) | |||||||||||||||||
Third party | $ | $ | $ | ||||||||||||||
Related party | $ | $ | $ |
For the three months ending December 31, 2020 | 2021 | 2022 | 2023 | Thereafter | Total | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Terminalling Services (1) (2) (3) | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Fleet Services | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
September 30, 2020 | December 31, 2019 | ||||||||||
(in thousands) | |||||||||||
Other current assets | $ | $ | |||||||||
Other current assets — related party | $ | $ | |||||||||
December 31, 2019 | Cash Additions for Customer Prepayments | Revenue Recognized | September 30, 2020 | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Deferred revenue | $ | $ | $ | ( | $ | |||||||||||||||||||||
Deferred revenue — related party (1) | $ | $ | $ | ( | $ | |||||||||||||||||||||
Other non-current liabilities (2) | $ | $ | $ | $ |
September 30, | |||||||||||
2020 | 2019 | ||||||||||
(in thousands) | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted Cash | |||||||||||
Total cash, cash equivalents and restricted cash | $ | $ |
September 30, 2020 | December 31, 2019 | Estimated Depreciable Lives (Years) | ||||||||||||
(in thousands) | ||||||||||||||
Land | $ | $ | N/A | |||||||||||
Trackage and facilities | 10-30 | |||||||||||||
Pipeline | 20-30 | |||||||||||||
Equipment | 3-20 | |||||||||||||
Furniture | 5-10 | |||||||||||||
Total property and equipment | ||||||||||||||
Accumulated depreciation | ( | ( | ||||||||||||
Construction in progress (1) | ||||||||||||||
Property and equipment, net | $ | $ |
Nine Months Ended September 30, 2020 | ||||||||
Weighted-average discount rate | % | |||||||
Weighted average remaining lease term in years |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Operating lease cost | $ | $ | $ | $ | ||||||||||||||||||||||
Short term lease cost | ||||||||||||||||||||||||||
Variable lease cost | ||||||||||||||||||||||||||
Sublease income | ( | ( | ( | ( | ||||||||||||||||||||||
Total | $ | $ | $ | $ |
2020 | $ | ||||
2021 | |||||
2022 | |||||
2023 | |||||
Total lease payments | $ | ||||
Less: imputed interest | ( | ||||
Present value of lease liabilities | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
(in thousands, except weighted average term) | ||||||||||||||||||||||||||
Lease income (1) | $ | $ | $ | $ | ||||||||||||||||||||||
Weighted average remaining lease term in years |
2020 | $ | ||||
2021 | |||||
2022 | |||||
Total | $ |
September 30, 2020 | December 31, 2019 | ||||||||||
(in thousands) | |||||||||||
Carrying amount: | |||||||||||
Customer service agreements | $ | $ | |||||||||
Other | |||||||||||
Total carrying amount | |||||||||||
Accumulated amortization: | |||||||||||
Customer service agreements | ( | ( | |||||||||
Other | ( | ( | |||||||||
Total accumulated amortization | ( | ( | |||||||||
Total intangible assets, net | $ | $ |
September 30, 2020 | December 31, 2019 | ||||||||||
(in thousands) | |||||||||||
Revolving Credit Facility | $ | $ | |||||||||
Less: Deferred financing costs, net | ( | ( | |||||||||
Total long-term debt, net | $ | $ |
September 30, 2020 | December 31, 2019 | ||||||||||
(in millions) | |||||||||||
Aggregate borrowing capacity under Credit Agreement | $ | $ | |||||||||
Less: Revolving Credit Facility amounts outstanding | |||||||||||
Available under the Credit Agreement based on capacity | $ | $ | |||||||||
Available under the Credit Agreement based on covenants (1) | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Interest expense on the Credit Agreement | $ | $ | $ | $ | |||||||||||||||||||
Capitalized interest on construction in progress | ( | ( | |||||||||||||||||||||
Amortization of deferred financing costs | |||||||||||||||||||||||
Total interest expense | $ | $ | $ | $ |
September 30, 2020 | |||||||||||||||||
Total assets | Total liabilities | Maximum exposure to loss | |||||||||||||||
(in thousands) | |||||||||||||||||
Accounts receivable | $ | $ | $ | ||||||||||||||
Deferred revenue | |||||||||||||||||
$ | $ | $ |
December 31, 2019 | |||||||||||||||||
Total assets | Total liabilities | Maximum exposure to loss | |||||||||||||||
(in thousands) | |||||||||||||||||
Accounts receivable | $ | $ | $ | ||||||||||||||
Deferred revenue | |||||||||||||||||
$ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Terminalling services — related party | $ | $ | $ | $ | |||||||||||||||||||
Fleet leases — related party | |||||||||||||||||||||||
Fleet services — related party | |||||||||||||||||||||||
Freight and other reimbursables — related party | |||||||||||||||||||||||
$ | $ | $ | $ |
September 30, 2020 | December 31, 2019 | ||||||||||
(in thousands) | |||||||||||
Accounts receivable — related party | $ | $ | |||||||||
Accounts payable and accrued expenses — related party (1) | $ | $ | |||||||||
Other current and non-current assets — related party (2) | $ | $ | |||||||||
Deferred revenue — related party (3) | $ | $ |
Distribution Declaration Date | Record Date | Distribution Payment Date | Amount Paid to USDG | Amount Paid to USD Partners GP LLC | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
January 30, 2020 | February 10, 2020 | February 19, 2020 | $ | $ | ||||||||||||||||||||||
April 23, 2020 | May 5, 2020 | May 15, 2020 | $ | $ | ||||||||||||||||||||||
July 23, 2020 | August 4, 2020 | August 14, 2020 | $ | $ |
Three Months Ended September 30, 2020 | |||||||||||||||||||||||
Terminalling services | Fleet services | Corporate | Total | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Terminalling services | $ | $ | — | $ | $ | ||||||||||||||||||
Terminalling services — related party | — | ||||||||||||||||||||||
Fleet leases — related party | |||||||||||||||||||||||
Fleet services | — | ||||||||||||||||||||||
Fleet services — related party | — | ||||||||||||||||||||||
Freight and other reimbursables | |||||||||||||||||||||||
Freight and other reimbursables — related party | |||||||||||||||||||||||
Total revenues | |||||||||||||||||||||||
Operating costs | |||||||||||||||||||||||
Subcontracted rail services | |||||||||||||||||||||||
Pipeline fees | |||||||||||||||||||||||
Freight and other reimbursables | |||||||||||||||||||||||
Operating and maintenance | |||||||||||||||||||||||
Selling, general and administrative | |||||||||||||||||||||||
Goodwill impairment loss | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Total operating costs | |||||||||||||||||||||||
Operating income (loss) | ( | ||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Loss associated with derivative instruments | |||||||||||||||||||||||
Foreign currency transaction loss (gain) | ( | ( | |||||||||||||||||||||
Other income, net | ( | ( | ( | ||||||||||||||||||||
Benefit from income taxes | ( | ( | ( | ||||||||||||||||||||
Net income (loss) | $ | $ | $ | ( | $ | ||||||||||||||||||
Three Months Ended September 30, 2019 | |||||||||||||||||||||||
Terminalling services | Fleet services | Corporate | Total | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Terminalling services | $ | $ | — | $ | $ | ||||||||||||||||||
Terminalling services — related party | — | ||||||||||||||||||||||
Fleet leases — related party | |||||||||||||||||||||||
Fleet services | — | ||||||||||||||||||||||
Fleet services — related party | — | ||||||||||||||||||||||
Freight and other reimbursables | |||||||||||||||||||||||
Freight and other reimbursables — related party | |||||||||||||||||||||||
Total revenues | |||||||||||||||||||||||
Operating costs | |||||||||||||||||||||||
Subcontracted rail services | |||||||||||||||||||||||
Pipeline fees | |||||||||||||||||||||||
Freight and other reimbursables | |||||||||||||||||||||||
Operating and maintenance | |||||||||||||||||||||||
Selling, general and administrative | |||||||||||||||||||||||
Goodwill impairment loss | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Total operating costs | |||||||||||||||||||||||
Operating income (loss) | ( | ||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Loss associated with derivative instruments | |||||||||||||||||||||||
Foreign currency transaction loss (gain) | ( | ||||||||||||||||||||||
Other income, net | ( | ( | ( | ||||||||||||||||||||
Provision for income taxes | |||||||||||||||||||||||
Net income (loss) | $ | $ | $ | ( | $ | ||||||||||||||||||
Nine Months Ended September 30, 2020 | |||||||||||||||||||||||
Terminalling services | Fleet services | Corporate | Total | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Terminalling services | $ | $ | — | $ | $ | ||||||||||||||||||
Terminalling services — related party | — | ||||||||||||||||||||||
Fleet leases — related party | |||||||||||||||||||||||
Fleet services | — | ||||||||||||||||||||||
Fleet services — related party | — | ||||||||||||||||||||||
Freight and other reimbursables | |||||||||||||||||||||||
Freight and other reimbursables — related party | |||||||||||||||||||||||
Total revenues | |||||||||||||||||||||||
Operating costs | |||||||||||||||||||||||
Subcontracted rail services | |||||||||||||||||||||||
Pipeline fees | |||||||||||||||||||||||
Freight and other reimbursables | |||||||||||||||||||||||
Operating and maintenance | |||||||||||||||||||||||
Selling, general and administrative | |||||||||||||||||||||||
Goodwill impairment loss | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Total operating costs | |||||||||||||||||||||||
Operating loss | ( | ( | ( | ( | |||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Loss associated with derivative instruments | |||||||||||||||||||||||
Foreign currency transaction loss (gain) | ( | ||||||||||||||||||||||
Other income, net | ( | ( | ( | ( | |||||||||||||||||||
Benefit from income taxes | ( | ( | ( | ||||||||||||||||||||
Net income (loss) | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
Nine Months Ended September 30, 2019 | |||||||||||||||||||||||
Terminalling services | Fleet services | Corporate | Total | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Terminalling services | $ | $ | — | $ | $ | ||||||||||||||||||
Terminalling services — related party | — | ||||||||||||||||||||||
Fleet leases — related party | |||||||||||||||||||||||
Fleet services | — | ||||||||||||||||||||||
Fleet services — related party | — | ||||||||||||||||||||||
Freight and other reimbursables | |||||||||||||||||||||||
Freight and other reimbursables — related party | |||||||||||||||||||||||
Total revenues | |||||||||||||||||||||||
Operating costs | |||||||||||||||||||||||
Subcontracted rail services | |||||||||||||||||||||||
Pipeline fees | |||||||||||||||||||||||
Freight and other reimbursables | |||||||||||||||||||||||
Operating and maintenance | |||||||||||||||||||||||
Selling, general and administrative | |||||||||||||||||||||||
Goodwill impairment loss | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Total operating costs | |||||||||||||||||||||||
Operating income (loss) | ( | ||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Loss associated with derivative instruments | |||||||||||||||||||||||
Foreign currency transaction loss (gain) | ( | ||||||||||||||||||||||
Other income, net | ( | ( | ( | ||||||||||||||||||||
Provision for income taxes | |||||||||||||||||||||||
Net income (loss) | $ | $ | $ | ( | $ | ||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
Terminalling Services Segment | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Net income (loss) | $ | $ | $ | ( | $ | ||||||||||||||||||
Interest income (1) | ( | ( | ( | ( | |||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Provision for (benefit from) income taxes | ( | ( | |||||||||||||||||||||
Foreign currency transaction loss (gain) (2) | ( | ||||||||||||||||||||||
Loss associated with disposal of assets | |||||||||||||||||||||||
Goodwill impairment loss | |||||||||||||||||||||||
Other income | ( | ( | |||||||||||||||||||||
Non-cash deferred amounts (3) | ( | ||||||||||||||||||||||
Segment Adjusted EBITDA | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
Fleet Services Segment | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Provision for (benefit from) income taxes | ( | ( | |||||||||||||||||||||
Interest income (1) | ( | ( | |||||||||||||||||||||
Foreign currency transaction loss (gain) (2) | ( | ( | |||||||||||||||||||||
Segment Adjusted EBITDA | $ | $ | $ | ( | $ | ||||||||||||||||||
September 30, 2020 | December 31, 2019 | ||||||||||
(in thousands) | |||||||||||
Other current liabilities | $ | ( | $ | ( | |||||||
Other non-current liabilities | ( | ( | |||||||||
$ | ( | $ | ( |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Loss associated with derivative instruments | $ | $ | $ | $ |
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||
Notional | Interest Rate Parameters | Fair Value | Fair Value | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Swap Agreements | ||||||||||||||||||||||||||
Swap maturing August 2025 | $ | % | $ | ( | $ |
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||
Notional | Interest Rate Parameters | Fair Value | Fair Value | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Collar Agreements | ||||||||||||||||||||||||||
Ceiling | $ | % | $ | $ | ||||||||||||||||||||||
Floor | $ | % | ( | |||||||||||||||||||||||
Total | $ | $ | ( |
December 31, 2019 | ||||||||||||||||||||||||||||||||
Current assets | Non-current assets | Current liabilities | Non-current liabilities | Total | ||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Fair value of derivatives — gross presentation | $ | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||
Effects of netting arrangements | ( | |||||||||||||||||||||||||||||||
Fair value of derivatives — net presentation | $ | $ | $ | ( | $ | ( | $ | ( |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Class A units outstanding at beginning of period | ||||||||||||||||||||||||||
Vested | ( | |||||||||||||||||||||||||
Forfeited | ||||||||||||||||||||||||||
Class A units outstanding at end of period |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Selling, general and administrative | $ | $ | $ | $ |
Director and Independent Consultant Phantom Units | Employee Phantom Units | Weighted-Average Grant Date Fair Value Per Phantom Unit | |||||||||||||||
Phantom Unit awards at December 31, 2019 | $ | ||||||||||||||||
Granted | $ | ||||||||||||||||
Vested | ( | ( | $ | ||||||||||||||
Forfeited | ( | $ | |||||||||||||||
Phantom Unit awards at September 30, 2020 | $ |
Director and Independent Consultant Phantom Units | Employee Phantom Units | Weighted-Average Grant Date Fair Value Per Phantom Unit | |||||||||||||||
Phantom Unit awards at December 31, 2018 | $ | ||||||||||||||||
Granted | $ | ||||||||||||||||
Vested | ( | ( | $ | ||||||||||||||
Forfeited | ( | $ | |||||||||||||||
Phantom Unit awards at September 30, 2019 | $ |
Director and Independent Consultant Phantom Units | Employee Phantom Units | Weighted-Average Grant Date Fair Value Per Phantom Unit | |||||||||||||||
Phantom Unit awards at December 31, 2019 | $ | ||||||||||||||||
Granted | $ | ||||||||||||||||
Vested | ( | $ | |||||||||||||||
Phantom Unit awards at September 30, 2020 | $ |
Director and Independent Consultant Phantom Units | Employee Phantom Units | Weighted-Average Grant Date Fair Value Per Phantom Unit | |||||||||||||||
Phantom Unit awards at December 31, 2018 | $ | ||||||||||||||||
Granted | $ | ||||||||||||||||
Vested | ( | $ | |||||||||||||||
Phantom Unit awards at September 30, 2019 | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Equity-classified Phantom Units (1) | $ | $ | $ | $ | |||||||||||||||||||
Liability-classified Phantom Units | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
(in thousands) | |||||||||||
Cash paid for income taxes | $ | $ | |||||||||
Cash paid for interest | $ | $ | |||||||||
Cash paid for operating leases | $ | $ |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
(in thousands) | |||||||||||
Loss associated with disposal of assets | $ | $ | |||||||||
Amortization of deferred financing costs | |||||||||||
$ | $ |
Nine months ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
(in thousands) | |||||||||||
Property and equipment financed through accounts payable accrued liabilities | $ | ( | $ | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Reconciliation of Net cash provided by operating activities to Adjusted EBITDA and Distributable cash flow: | |||||||||||||||||||||||
Net cash provided by operating activities | $ | 16,634 | $ | 14,648 | $ | 33,760 | $ | 34,155 | |||||||||||||||
Add (deduct): | |||||||||||||||||||||||
Amortization of deferred financing costs | (208) | (208) | (622) | (865) | |||||||||||||||||||
Deferred income taxes | 722 | (104) | 1,263 | 299 | |||||||||||||||||||
Changes in accounts receivable and other assets | (69) | (2,498) | 2,068 | (200) | |||||||||||||||||||
Changes in accounts payable and accrued expenses | (545) | (9) | 687 | (2,018) | |||||||||||||||||||
Changes in deferred revenue and other liabilities | (2,365) | (2,666) | (5,187) | (5,128) | |||||||||||||||||||
Interest expense, net | 2,036 | 2,983 | 7,004 | 9,133 | |||||||||||||||||||
Provision for (benefit from) income taxes | (307) | 414 | (626) | 612 | |||||||||||||||||||
Foreign currency transaction loss (gain) (1) | (246) | 35 | 812 | 237 | |||||||||||||||||||
Other income | — | (27) | — | (69) | |||||||||||||||||||
Non-cash deferred amounts (2) | (16) | 1,435 | 1,540 | 1,545 | |||||||||||||||||||
Adjusted EBITDA | 15,636 | 14,003 | 40,699 | 37,701 | |||||||||||||||||||
Add (deduct): | |||||||||||||||||||||||
Cash paid for income taxes | (190) | (297) | (623) | (904) | |||||||||||||||||||
Cash paid for interest | (1,880) | (3,045) | (6,837) | (8,860) | |||||||||||||||||||
Maintenance capital expenditures | (16) | (131) | (130) | (176) | |||||||||||||||||||
Distributable cash flow | $ | 13,550 | $ | 10,530 | $ | 33,109 | $ | 27,761 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Operating income (loss) | |||||||||||||||||||||||
Terminalling services | $ | 11,590 | $ | 8,466 | $ | (6,899) | $ | 25,165 | |||||||||||||||
Fleet services | 39 | 25 | (9) | 30 | |||||||||||||||||||
Corporate and other | (2,733) | (2,760) | (8,695) | (8,882) | |||||||||||||||||||
Total operating income (loss) | 8,896 | 5,731 | (15,603) | 16,313 | |||||||||||||||||||
Interest expense | 2,045 | 3,005 | 7,040 | 9,174 | |||||||||||||||||||
Loss associated with derivative instruments | 1,200 | 220 | 4,405 | 1,966 | |||||||||||||||||||
Foreign currency transaction loss (gain) | (246) | 35 | 812 | 237 | |||||||||||||||||||
Other income, net | (33) | (49) | (876) | (52) | |||||||||||||||||||
Provision for (benefit from) income taxes | (307) | 414 | (626) | 612 | |||||||||||||||||||
Net income (loss) | $ | 6,237 | $ | 2,106 | $ | (26,358) | $ | 4,376 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Terminalling services | $ | 29,946 | $ | 28,168 | $ | 84,378 | $ | 79,059 | |||||||||||||||
Freight and other reimbursables | 32 | 220 | 681 | 748 | |||||||||||||||||||
Total revenues | 29,978 | 28,388 | 85,059 | 79,807 | |||||||||||||||||||
Operating costs | |||||||||||||||||||||||
Subcontracted rail services | 2,300 | 3,689 | 8,433 | 10,953 | |||||||||||||||||||
Pipeline fees | 5,936 | 5,411 | 17,678 | 15,374 | |||||||||||||||||||
Freight and other reimbursables | 32 | 220 | 681 | 748 | |||||||||||||||||||
Operating and maintenance | 3,375 | 3,934 | 11,067 | 7,622 | |||||||||||||||||||
Selling, general and administrative | 1,315 | 1,368 | 4,455 | 4,628 | |||||||||||||||||||
Goodwill impairment loss | — | — | 33,589 | — | |||||||||||||||||||
Depreciation and amortization | 5,430 | 5,300 | 16,055 | 15,317 | |||||||||||||||||||
Total operating costs | 18,388 | 19,922 | 91,958 | 54,642 | |||||||||||||||||||
Operating income (loss) | 11,590 | 8,466 | (6,899) | 25,165 | |||||||||||||||||||
Foreign currency transaction loss (gain) | 46 | 33 | 53 | (62) | |||||||||||||||||||
Other income, net | (25) | (45) | (864) | (44) | |||||||||||||||||||
Provision for (benefit from) income taxes | (293) | 406 | (132) | 596 | |||||||||||||||||||
Net income (loss) | $ | 11,862 | $ | 8,072 | $ | (5,956) | $ | 24,675 | |||||||||||||||
Average daily terminal throughput (bpd) | 18,143 | 131,482 | 71,649 | 110,829 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Fleet leases | $ | 984 | $ | 984 | $ | 2,951 | $ | 2,951 | |||||||||||||||
Fleet services | 278 | 277 | 834 | 840 | |||||||||||||||||||
Freight and other reimbursables | 97 | 245 | 135 | 479 | |||||||||||||||||||
Total revenues | 1,359 | 1,506 | 3,920 | 4,270 | |||||||||||||||||||
Operating costs | |||||||||||||||||||||||
Freight and other reimbursables | 97 | 245 | 135 | 479 | |||||||||||||||||||
Operating and maintenance | 1,026 | 1,018 | 3,071 | 3,051 | |||||||||||||||||||
Selling, general and administrative | 197 | 218 | 723 | 710 | |||||||||||||||||||
Total operating costs | 1,320 | 1,481 | 3,929 | 4,240 | |||||||||||||||||||
Operating income (loss) | 39 | 25 | (9) | 30 | |||||||||||||||||||
Foreign currency transaction loss (gain) | 1 | (2) | (2) | 6 | |||||||||||||||||||
Other income, net | (8) | — | (8) | — | |||||||||||||||||||
Provision for (benefit from) income taxes | (14) | 8 | (494) | 16 | |||||||||||||||||||
Net income | $ | 60 | $ | 19 | $ | 495 | $ | 8 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Operating costs | |||||||||||||||||||||||
Selling, general and administrative | $ | 2,733 | $ | 2,760 | $ | 8,695 | $ | 8,882 | |||||||||||||||
Operating loss | (2,733) | (2,760) | (8,695) | (8,882) | |||||||||||||||||||
Interest expense | 2,045 | 3,005 | 7,040 | 9,174 | |||||||||||||||||||
Loss associated with derivative instruments | 1,200 | 220 | 4,405 | 1,966 | |||||||||||||||||||
Foreign currency transaction loss (gain) | (293) | 4 | 761 | 293 | |||||||||||||||||||
Other income, net | — | (4) | (4) | (8) | |||||||||||||||||||
Net loss | $ | (5,685) | $ | (5,985) | $ | (20,897) | $ | (20,307) |
September 30, 2020 | December 31, 2019 | ||||||||||
(in millions) | |||||||||||
Cash and cash equivalents (1) | $ | 6.9 | $ | 3.1 | |||||||
Aggregate borrowing capacity under Credit Agreement | 385.0 | 385.0 | |||||||||
Less: Revolving Credit Facility amounts outstanding | 209.0 | 220.0 | |||||||||
Available liquidity based on Credit Agreement capacity (2) | $ | 182.9 | $ | 168.1 | |||||||
Available liquidity based on Credit Agreement covenants (2) | $ | 44.1 | $ | 31.9 |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
(in thousands) | |||||||||||
Net cash provided by (used in): | |||||||||||
Operating activities | $ | 33,760 | $ | 34,155 | |||||||
Investing activities | (395) | (7,072) | |||||||||
Financing activities | (29,809) | (25,840) | |||||||||
Effect of exchange rates on cash | 293 | 497 | |||||||||
Net change in cash, cash equivalents and restricted cash | $ | 3,849 | $ | 1,740 |
Index of Exhibits | ||||||||
Exhibit Number | Description | |||||||
3.1 | ||||||||
3.2 | ||||||||
31.1* | ||||||||
31.2* | ||||||||
32.1** | ||||||||
32.2** | ||||||||
101.INS* | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |||||||
101.SCH* | Inline XBRL Schema Document | |||||||
101.CAL* | Inline XBRL Calculation Linkbase Document | |||||||
101.LAB* | Inline XBRL Label Linkbase Document | |||||||
101.PRE* | Inline XBRL Presentation Linkbase Document | |||||||
101.DEF* | Inline XBRL Definition Linkbase Document | |||||||
104* | The cover page of the USD Partners LP Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, formatted in Inline XBRL (included within the Exhibit 101 attachments) |
USD PARTNERS LP (Registrant) | |||||||||||
By: | USD Partners GP LLC, its General Partner | ||||||||||
Date: | November 5, 2020 | By: | /s/ Dan Borgen | ||||||||
Dan Borgen Chief Executive Officer and President (Principal Executive Officer) | |||||||||||
Date: | November 5, 2020 | By: | /s/ Adam Altsuler | ||||||||
Adam Altsuler Senior Vice President and Chief Financial Officer (Principal Financial Officer) |
Date: | November 5, 2020 | /s/ Dan Borgen | |||||||||
Dan Borgen | |||||||||||
Chief Executive Officer and President (Principal Executive Officer) |
Date: | November 5, 2020 | /s/ Adam Altsuler | |||||||||
Adam Altsuler | |||||||||||
Senior Vice President and Chief Financial Officer (Principal Financial Officer) |
Date: | November 5, 2020 | /s/ Dan Borgen | |||||||||
Dan Borgen | |||||||||||
Chief Executive Officer and President (Principal Executive Officer) |
Date: | November 5, 2020 | /s/ Adam Altsuler | |||||||||
Adam Altsuler | |||||||||||
Senior Vice President and Chief Financial Officer (Principal Financial Officer) |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 6,237 | $ 2,106 | $ (26,358) | $ 4,376 |
Other comprehensive income (loss) — foreign currency translation | 689 | (652) | (916) | 1,903 |
Comprehensive income (loss) | $ 6,926 | $ 1,454 | $ (27,274) | $ 6,279 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
General partners' units outstanding (in shares) | 461,136 | 461,136 |
Common units | ||
Limited partners' units outstanding (in shares) | 26,844,337 | 24,411,892 |
Subordinated units | ||
Limited partners' units outstanding (in shares) | 2,092,709 |
ORGANIZATION AND BASIS OF PRESENTATION |
9 Months Ended |
---|---|
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | ORGANIZATION AND BASIS OF PRESENTATION USD Partners LP and its consolidated subsidiaries, collectively referred to herein as we, us, our, the Partnership and USDP, is a fee-based, growth-oriented master limited partnership formed in 2014 by US Development Group, LLC, or USD, through its wholly-owned subsidiary, USD Group LLC, or USDG. We were formed to acquire, develop and operate midstream infrastructure and complementary logistics solutions for crude oil, biofuels and other energy-related products. We generate substantially all of our operating cash flows from multi-year, take-or-pay contracts with primarily investment grade customers, including major integrated oil companies, refiners and marketers. Our network of crude oil terminals facilitate the transportation of heavy crude oil from Western Canada to key demand centers across North America. Our operations include railcar loading and unloading, storage and blending in onsite tanks, inbound and outbound pipeline connectivity, truck transloading, as well as other related logistics services. We also provide our customers with leased railcars and fleet services to facilitate the transportation of liquid hydrocarbons and biofuels by rail. We do not generally take ownership of the products that we handle, nor do we receive any payments from our customers based on the value of such products. We may, on occasion, enter into buy-sell arrangements in which we take temporary title to commodities while in our terminals. These arrangements are typically at fixed prices where we do not take commodity price exposure. A substantial amount of the operating cash flows related to the terminalling services that we provide are generated from take-or-pay contracts with minimum monthly commitment fees and, as a result, are not directly related to actual throughput volumes at our crude oil terminals. Throughput volumes at our terminals are primarily influenced by the difference in price between Western Canadian Select, or WCS, and other grades of crude oil, commonly referred to as spreads, rather than absolute price levels. WCS spreads are influenced by several market factors, including the availability of supplies relative to the level of demand from refiners and other end users, the price and availability of alternative grades of crude oil, the availability of takeaway capacity, as well as transportation costs from supply areas to demand centers. Recent Events In December 2019, a novel coronavirus disease (“COVID-19”) was reported and in March 2020, the World Health Organization declared that the spread of COVID-19 qualified as a global pandemic. The COVID-19 pandemic has adversely affected the global economy, disrupted global supply chains and created significant volatility in the financial markets. In addition, the pandemic has resulted in travel restrictions, business closures and the institution of quarantining and other restrictions on movement worldwide. In addition, in March 2020, members of the Organization of the Petroleum Exporting Countries (“OPEC”) and other oil producing countries (“OPEC+”) failed to agree on oil production levels, which led to a substantial decline in oil prices and an increasingly volatile market. In April 2020, even though OPEC+ announced that it had reached an agreement to cut production by 9.7 million barrels per day, or Mmbpd, oil prices did not meaningfully increase. Governments in the United States and Canada have limited movement of people and functioning of businesses in an effort to contain the spread of COVID-19. Mandatory and voluntary closures continue and their duration and impact remains unknown. As a result of these factors, there has been a significant reduction in demand for and prices of crude oil and natural gas liquids. Even when commodity prices have increased, they have remained highly volatile and at relatively low levels that have caused many oil and gas producers to suspend or reduce development programs. In July 2020, OPEC+ agreed to taper oil production cuts, which will scale back production cuts from 9.7 Mmbpd to 7.7 Mmbpd between August 2020 and January 2021. While COVID-19 is still a global pandemic, parts of the world have started to recover and some economies have started to reopen. However, certain jurisdictions that began re-opening have returned to restrictions in light of increased numbers of new COVID-19 cases. There still remains considerable uncertainty about the ultimate impact and duration of the pandemic and its effects on the global economy. As a result of the overall downturn in the crude market and the decline in the demand for petroleum products, we tested the goodwill associated with our Casper terminal for impairment as of March 31, 2020, which resulted in an impairment loss recognized for the nine months ended September 30, 2020. Refer to Note 8. Goodwill and Intangible Assets for further discussion of the impairment loss at the Casper terminal. If the current depressed pricing environment continues for an extended period, it may lead to a potential additional impairment of long-lived assets and customer demand for our services may also be negatively impacted. Any material non-payment or nonperformance by any of our key customers resulting from the current market conditions could have a material adverse effect on our business, financial condition, and results of operations in future periods. In addition, in March 2020, United States legislation referred to as the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), was signed into law. The CARES Act is an emergency economic stimulus package enacted in response to the coronavirus outbreak which, among other measures, contains numerous income tax provisions. Refer to Note 15. Income Taxes for further discussion of the impact of the CARES Act to our income taxes. Basis of Presentation Our accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or GAAP, for interim consolidated financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all the information and disclosures required by GAAP for complete consolidated financial statements. In the opinion of our management, they contain all adjustments, including adjustments made associated with the provisions of the CARES Act discussed above, and consisting only of normal recurring adjustments, which our management considers necessary to present fairly our financial position as of September 30, 2020, our results of operations for the three and nine months ended September 30, 2020 and 2019, and our cash flows for the nine months ended September 30, 2020 and 2019. We derived our consolidated balance sheet as of December 31, 2019 from the audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019. Our results of operations for the three and nine months ended September 30, 2020 and 2019 should not be taken as indicative of the results to be expected for the full year due to fluctuations in the supply of and demand for crude oil and biofuels, timing and completion of acquisitions, if any, changes in the fair market value of our derivative instruments and the impact of fluctuations in foreign currency exchange rates. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto presented in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019. Foreign Currency Translation We conduct a substantial portion of our operations in Canada, which we account for in the local currency, the Canadian dollar. We translate most Canadian dollar denominated balance sheet accounts into our reporting currency, the U.S. dollar, at the end of period exchange rate, while most accounts in our statement of operations are translated into our reporting currency based on the average exchange rate for each monthly period. Fluctuations in the exchange rate between the Canadian dollar and the U.S. dollar can create variability in the amounts we translate and report in U.S. dollars. Within these consolidated financial statements, we denote amounts denominated in Canadian dollars with “C$” immediately prior to the stated amount. US Development Group, LLC USD and its affiliates are engaged in designing, developing, owning and managing large-scale multi-modal logistics centers and energy-related infrastructure across North America. USD is the indirect owner of our general partner through its direct ownership of USDG and is currently owned by Energy Capital Partners, Goldman Sachs and certain of USD’s management team members.
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RECENT ACCOUNTING PROUNOUNCEMENTS |
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Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
RECENT ACCOUNTING PROUNOUNCEMENTS | RECENT ACCOUNTING PROUNOUNCEMENTS Recently Adopted Accounting Pronouncements Intangibles - Goodwill and Other (ASU 2017-04) In January 2017, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update No. 2017-04, or ASU 2017-04, which amends ASC Topic 350 to modify the concept of impairment from the condition that exists when the carrying amount of goodwill exceeds its implied fair value to the condition that exists when the carrying amount of a reporting unit exceeds its fair value. Pursuant to the provisions of ASU 2017-04, an entity will no longer determine goodwill impairment by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. Rather, an entity will recognize an impairment loss for the amount by which the carrying amount of a reporting unit exceeds the reporting unit’s fair value. However, the loss recognized cannot exceed the total amount of goodwill allocated to that reporting unit. The pronouncement is effective for fiscal years beginning after December 15, 2019, or for any interim impairment testing within those fiscal years and is required to be applied prospectively, with early adoption permitted. We adopted the provisions of ASU 2017-04 on January 1, 2020. In March 2020, we tested the goodwill associated with our Casper terminal for impairment due to there being circumstances that suggested the fair value of the Casper reporting unit was less than its carrying amount. The circumstances identified related to the overall downturn in the crude market and the decline in the demand for petroleum products, which could lead to delays or reductions of expected throughput levels and changes in expectations for current and future contracts at the Casper terminal. Refer to Note 1. Organization and Basis of Presentation — Recent Events for more information. This standard requires us to recognize an impairment loss for the amount by which the carrying amount of our Casper terminal exceeds the fair value of the terminal. Accordingly, we have recognized an impairment loss in our goodwill asset for the nine months ended September 30, 2020. Refer to Note 8. Goodwill and Intangible assets for more information. Recent Accounting Pronouncements Not Yet Adopted Income Taxes (ASU 2019-12) In December 2019, the FASB issued Accounting Standards Update No. 2019-12, or ASU 2019-12, which amends ASC Topic 740 by removing certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. It also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. In addition, under the provisions of ASU 2019-12, single-member limited liability companies and similar disregarded entities that are not subject to income tax are not required to recognize an allocation of consolidated income tax expense in their separate financial statements, but they could elect to do so. The pronouncement is effective for fiscal years beginning after December 15, 2020, or for any interim periods within those fiscal years, with early adoption permitted. We do not expect to early adopt the provisions of this standard, nor do we anticipate that our adoption of this standard will have a material impact on our financial statements.
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NET INCOME (LOSS) PER LIMITED PARTNER INTEREST |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NET INCOME (LOSS) PER LIMITED PARTNER INTEREST | NET INCOME (LOSS) PER LIMITED PARTNER INTEREST We allocate our net income or loss among our general partner and limited partners using the two-class method in accordance with applicable authoritative accounting guidance. Under the two-class method, we allocate our net income or loss and any net income or loss in excess of distributions to our limited partners, our general partner and the holder of the incentive distribution rights, or IDRs, according to the distribution formula for available cash as set forth in our partnership agreement. We allocate any distributions in excess of earnings for the period to our limited partners and general partner based on their respective proportionate ownership interests in us, as set forth in our partnership agreement after taking into account distributions to be paid with respect to the IDRs. The formula for distributing available cash as set forth in our partnership agreement is as follows:
(1)Calculated as if our general partner holds the original 2% general partner interest in us, which is currently at 1.7%. We determined basic and diluted net income (loss) per limited partner unit as set forth in the following tables:
(1)Represents net income allocated to each class of units based on the actual ownership of the Partnership during the period. There were no amounts attributed to the general partner for its incentive distribution rights. (2)Represents the distributions payable for the period based upon the quarterly distribution amounts of $0.111 per unit or $0.444 on an annualized basis. Amounts presented for each class of units include a proportionate amount of the $152 thousand distributable to holders of the Equity classified Phantom Units pursuant to the distribution equivalent rights granted under the USD Partners LP 2014 Amended and Restated Long-Term Incentive Plan. (3)Represents the weighted average units outstanding for the period. (4)Represents the total distributable earnings divided by the weighted average number of units outstanding for the period. (5)Represents the additional amount per unit necessary to distribute the excess net income for the period among our limited partners and our general partners according to the distribution formula for available cash as set forth in our partnership agreement.. (6)Our computation of net income per limited partner unit excludes the effects of 1,366,355 equity-classified phantom unit awards outstanding as they were anti-dilutive for the period presented. (7)In February 2019, pursuant to the terms set forth in our partnership agreement, the fourth and final vesting tranche of 38,750 Class A units vested and were converted into Common units. Additionally, in February 2020, the final tranche of 2,092,709 subordinated units were converted into common units. Refer to Note 17. Partners Capital for more information.
(1)Represents net income allocated to each class of units based on the actual ownership of the Partnership during the period. The net income for each class of limited partner has been reduced by its proportionate amount of the $181 thousand attributed to the general partner for its incentive distribution rights. (2)Represents the distributions paid for the period based upon the quarterly distribution amount of $0.3675 per unit or $1.47 per unit on an annualized basis. Amounts presented for each class of units include a proportionate amount of the $474 thousand distributable to holders of the Equity classified Phantom Units pursuant to the distribution equivalent rights granted under the USD Partners Amended and Restated LP 2014 Long-Term Incentive Plan. (3)Represents the weighted average units outstanding for the period. (4)Represents the total distributable earnings divided by the weighted average number of units outstanding for the period. (5)Represents the distributions in excess of earnings divided by the weighted average number of units outstanding for the period. (6)Our computation of net income per limited partner unit excludes the effects of 1,290,558 equity-classified phantom unit awards outstanding as they were anti-dilutive for the period presented. (7)In February 2019, pursuant to the terms set forth in our partnership agreement, the fourth and final vesting tranche of 38,750 Class A units vested and were converted into Common units. Refer to Note 17. Partners Capital for more information.
(1)Represents net loss allocated to each class of units based on the actual ownership of the Partnership during the period. There were no amounts attributed to the general partner for its incentive distribution rights. (2)Represents the per unit distribution paid of $0.111 per unit for the three months ended March 31, 2020 and June 30, 2020 and $0.111 per unit distributable for the three months ended September 30, 2020, representing a year-to-date distribution of $0.333 per unit. Amounts presented for each class of units include a proportionate amount of the $304 thousand distributed and $152 thousand distributable to holders of the Equity classified Phantom Units pursuant to the distribution equivalent rights granted under the USD Partners Amended and Restated LP 2014 Long-Term Incentive Plan. (3)Represents the weighted average units outstanding for the period. (4)Represents the total distributable earnings divided by the weighted average number of units outstanding for the period. (5)Represents the distributions in excess of earnings divided by the weighted average number of units outstanding for the period. (6)Our computation of net loss per limited partner unit excludes the effects of 1,366,355 equity-classified phantom unit awards outstanding as they were anti-dilutive for the period presented. (7)In February 2019, pursuant to the terms set forth in our partnership agreement, the fourth and final vesting tranche of 38,750 Class A units vested and were converted into Common units. Additionally, in February 2020, the final tranche of 2,092,709 subordinated units were converted into common units. Refer to Note 17. Partners Capital for more information.
(1)Represents net income allocated to each class of units based on the actual ownership of the Partnership during the period. The net income for each class of limited partner interest has been reduced by its proportionate amount of the approximate $483 thousand attributed to the general partner for its incentive distribution rights. (2)Represents the per unit distributions paid of $0.3625 per unit for the three months ended March 31, 2019, the per unit distribution of $0.365 per unit for the three months ended June 30, 2019, and the per unit distribution of $0.3675 for the three months ended September 30, 2019, representing a year-to-date distribution amount of $1.095 per unit. Amounts presented for each class of units include a proportionate amount of the $1.4 million distributed to holders of the Equity-classified Phantom Units pursuant to the distribution equivalent rights granted under the USD Partners Amended and Restated LP 2014 Long-Term Incentive Plan. (3)Represents the weighted average units outstanding for the period. (4)Represents the total distributable earnings divided by the weighted average number of units outstanding for the period. (5)Represents the distributions in excess of earnings divided by the weighted average number of units outstanding for the period. (6)Our computation of net income per limited partner unit excludes the effects of 1,290,558 equity-classified phantom unit awards outstanding as they were anti-dilutive for the period presented. (7)In February 2019, pursuant to the terms set forth in our partnership agreement, the fourth and final vesting tranche of 38,750 Class A units vested and were converted into Common units. Refer to Note 17. Partners Capital for more information.
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REVENUES |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUES | REVENUES Disaggregated Revenues We manage our business in two reportable segments: Terminalling services and Fleet services. Our segments offer different services and are managed accordingly. Our chief operating decision maker, or CODM, regularly reviews financial information about both segments in order to allocate resources and evaluate performance. As such, we have concluded that disaggregating revenue by reporting segments appropriately depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Refer to Note 14. Segment Reporting for our disaggregated revenues by segment. Additionally, the below tables summarize the geographic data for our revenues:
Remaining Performance Obligations The transaction price allocated to the remaining performance obligations associated with our terminalling and fleet services agreements as of September 30, 2020 are as follows for the periods indicated:
(1)A significant portion of our terminalling services agreements are denominated in Canadian dollars. We have converted the remaining performance obligations associated with these Canadian dollar-denominated contracts using the year-to-date average exchange rate of 0.7392 U.S. dollars per each Canadian dollar at September 30, 2020. (2)Includes fixed monthly minimum commitment fees per contracts and excludes constrained estimates of variable consideration for rate-escalations associated with an index, such as the consumer price index, as well as any incremental revenue associated with volume activity above the minimum volumes set forth within the contracts. Also excludes estimated constrained variable consideration included in certain of our terminalling services agreements that is based on crude oil pricing index differentials. (3)Assumes USD’s Diluent Recovery Unit project goes into service in the second half of 2021, which will result in certain terminalling services agreements of our Hardisty terminal being automatically extended through mid-2031 and certain agreements at our Stroud terminal having a termination right in June 2022. We have applied the practical expedient that allows us to exclude disclosure of performance obligations that are part of a contract that has an expected duration of one year or less. Contract Assets Our contract assets represent cumulative revenue that has been recognized in advance of billing the customer due to tiered billing provisions. In such arrangements, revenue is recognized using a blended rate based on the billing tiers of the agreement, as the services are consistently provided throughout the duration of the contractual arrangement. We had the following amounts outstanding associated with our contract assets on our consolidated balance sheets in the financial statement line items presented below in the following table for the indicated periods:
Deferred Revenue Our deferred revenue is a form of a contract liability and consists of amounts collected in advance from customers associated with their terminalling and fleet services agreements and deferred revenues associated with make-up rights, which will be recognized as revenue when earned pursuant to the terms of our contractual arrangements. We currently recognize substantially all of the amounts we receive for minimum volume commitments as revenue when collected, since breakage associated with these make-up rights is currently 100% based on our experience and expectations around usage of these options. Accordingly, we had no deferred revenues at September 30, 2020 for estimated breakage associated with the make-up rights options we granted to our customers. There were $1.1 million of deferred revenues associated with make-up rights at December 31, 2019. We also have deferred revenue that represents cumulative revenue that has been deferred due to tiered billing provisions. In such arrangements, revenue is recognized using a blended rate based on the billing tiers of the agreement, as the services are consistently provided throughout the duration of the contractual arrangement, which we included in “Other non-current liabilities” on our consolidated balance sheets. The following table presents the amounts outstanding on our consolidated balance sheets and changes associated with the balance of our deferred revenue for the nine months ended September 30, 2020:
(1) Includes deferred revenue associated with customer prepayments from related parties. Refer to Note 12. Transactions with Related Parties for additional discussion of deferred revenues associated with related parties. Excludes deferred revenue from related parties associated with our fleet leases discussed below. (2) Includes cumulative revenue that has been deferred due to tiered billing provisions included in certain of our Canadian dollar-denominated contracts, as discussed above. As such, the change in “Other non-current liabilities” presented has been reduced by approximately $88 thousand due to the impact of the change in the end of period exchange rate between December 31, 2019 and September 30, 2020. Deferred Revenue — Fleet Leases Our deferred revenue also includes advance payments from customers of our Fleet services business, which will be recognized as Fleet leases revenue when earned pursuant to the terms of our contractual arrangements. We have included $0.4 million at each of September 30, 2020 and December 31, 2019 in “Deferred revenue — related party” on our consolidated balance sheets associated with customer prepayments for our fleet lease agreements. Refer to Note 7. Leases for additional discussion of our lease revenues.
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RESTRICTED CASH |
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Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESTRICTED CASH | RESTRICTED CASH We include in restricted cash amounts representing a cash account for which the use of funds is restricted by a facilities connection agreement among us and Gibson Energy Inc., or Gibson, that we entered into during 2014 in connection with the development of our Hardisty terminal. The collaborative arrangement is further discussed in Note 10. Collaborative Arrangement. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within our consolidated balance sheets to the amounts shown in our consolidated statements of cash flows for the specified periods:
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PROPERTY AND EQUIPMENT |
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Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Our property and equipment is comprised of the following asset classifications as of the dates indicated:
(1)The amounts classified as “Construction in progress” are excluded from amounts being depreciated. These amounts represent property that has not been placed into productive service as of the respective consolidated balance sheet date. We had no capitalized interest costs for the three and nine months ended September 30, 2020, and $170 thousand and $439 thousand for the three and nine months ended September 30, 2019, respectively Depreciation expense associated with property and equipment totaled $2.3 million and $2.1 million for the three months ended September 30, 2020 and 2019, respectively, and $6.6 million and $5.9 million for the nine months ended September 30, 2020 and 2019, respectively. Our depreciation expense reflects a reduction to our asset retirement obligation, or ARO, of $0.2 million and $0.6 million for the nine months ended September 30, 2020 and 2019, respectively, due to refinement of our estimates. We had no change in our estimates for the three months ended September 30, 2020 and 2019. The ARO was associated with restoration of the property at our San Antonio facility. All remediation activities associated with the ARO are now deemed complete and this position has not been disputed by the property owner. There is no remaining balance related to ARO on our consolidated balance sheet at September 30, 2020.
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LEASES |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES | LEASES We have noncancellable operating leases for railcars, buildings, storage tanks, offices, railroad tracks, and land.
Our total lease cost consisted of the following items for the dates indicated:
The maturity analysis below presents the undiscounted cash payments we expect to make each period for property that we lease from others under noncancellable operating leases as of September 30, 2020 (in thousands):
We serve as an intermediary to assist our customers with obtaining railcars. In connection with our leasing of railcars from third parties, we simultaneously enter into lease agreements with our customers for noncancellable terms that are designed to recover our costs associated with leasing the railcars plus a fee for providing this service. In addition to these leases, we also have lease income from storage tanks.
(1)Lease income associated with crude oil storage tanks we lease to customers of our terminals totaling $1.5 million and $1.4 million for the three months ended September 30, 2020 and 2019, and $4.1 million and $4.5 million for the nine months ended September 30, 2020 and 2019, respectively, is included in “Terminalling services” revenues on our consolidated statements of operations. The maturity analysis below presents the undiscounted future minimum lease payments we expect to receive from customers each period for property they lease from us under noncancellable operating leases as of September 30, 2020 (in thousands):
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LEASES | LEASES We have noncancellable operating leases for railcars, buildings, storage tanks, offices, railroad tracks, and land.
Our total lease cost consisted of the following items for the dates indicated:
The maturity analysis below presents the undiscounted cash payments we expect to make each period for property that we lease from others under noncancellable operating leases as of September 30, 2020 (in thousands):
We serve as an intermediary to assist our customers with obtaining railcars. In connection with our leasing of railcars from third parties, we simultaneously enter into lease agreements with our customers for noncancellable terms that are designed to recover our costs associated with leasing the railcars plus a fee for providing this service. In addition to these leases, we also have lease income from storage tanks.
(1)Lease income associated with crude oil storage tanks we lease to customers of our terminals totaling $1.5 million and $1.4 million for the three months ended September 30, 2020 and 2019, and $4.1 million and $4.5 million for the nine months ended September 30, 2020 and 2019, respectively, is included in “Terminalling services” revenues on our consolidated statements of operations. The maturity analysis below presents the undiscounted future minimum lease payments we expect to receive from customers each period for property they lease from us under noncancellable operating leases as of September 30, 2020 (in thousands):
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GOODWILL AND INTANGIBLE ASSETS |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill Goodwill represents the excess of the purchase price of an entity over the estimated fair value of the assets acquired and liabilities assumed. Our goodwill originated from our acquisition of the Casper terminal, which is included in our Terminalling services segment. In March 2020, we tested the goodwill associated with our Casper terminal for impairment due to the overall downturn in the crude market and the decline in the demand for petroleum products, which could lead to delays or reductions of expected throughput levels and changes in expectations for current and future contracts at the Casper terminal. Refer to Note 1. Organization and Basis of Presentation — Current Events for more information. The critical assumptions used in our analysis include the following: 1)a weighted average cost of capital of 12%; 2)a capital structure consisting of approximately 65% debt and 35% equity based on the capital structure of market participants; 3)a range of EBITDA multiples derived from equity prices of public companies with similar operating and investment characteristics, from 7.25x to 8.25x; 4)a range of EBITDA multiples for transactions based on actual sales and purchases of comparable businesses, from 8.0x to 9.0x; and 5)a range of incremental volumes expected at our Casper terminal of approximately 4,000 to 25,000 bpd for terminalling and storage services resulting from the anticipated successful completion of the Enbridge DRA project in the second half of 2020. We measured the fair value of our Casper terminal reporting unit by using an income analysis, market analysis and transaction analysis with weightings of 50%, 25% and 25%, respectively. Our estimate of fair value required us to use significant unobservable inputs representative of a Level 3 fair value measurement, including assumptions related to the future performance of our Casper terminal. We determined that the carrying amount of our Casper terminal reporting unit exceeded its fair value at March 31, 2020. Accordingly, we recognized an impairment loss of $33.6 million in our goodwill asset and included this charge in “Goodwill impairment loss” within our consolidated statement of operations for the nine months ended September 30, 2020. For additional information see Note 2. Recent Accounting Pronouncements. At September 30, 2020, we had no goodwill balance in our consolidated balance sheet. Intangible Assets The composition, gross carrying amount and accumulated amortization of our identifiable intangible assets are as follows as of the dates indicated:
Amortization expense associated with intangible assets totaled $3.2 million for the three months ended September 30, 2020 and 2019, and $9.5 million for the nine months ended September 30, 2020 and 2019. We determined the overall downturn in the crude market and the decline in the demand for petroleum products, which could lead to delays or reduction of expected throughput levels and changes in expectations for current and future contracts in our terminalling services at the Casper terminal, was an event that required us to evaluate our Casper terminal asset group for impairment. We measured the fair value of our Casper terminal assets at March 31, 2020, by using projections of the undiscounted cash flows expected to be derived from the operation and disposition of the Casper terminal asset. The critical assumptions underlying our projections included the following: 1)a range of incremental volumes expected at our Casper terminal of approximately 4,000 to 25,000 bpd for terminalling and storage services resulting from the anticipated successful completion of the Enbridge DRA project in the second half of 2020; 2)expected volumes for our blended services business for distribution to local refiners; 3)a 15 year remaining useful life of the primary asset, represented by our property and equipment of the Casper terminal asset group; and 4)a residual value of 8.0x projected cash flows for the Casper terminal at the end of the 15 year remaining life of the primary asset. Our projections of the undiscounted cash flows expected to be derived from the operation and disposition of the Casper terminal asset group exceeded the carrying amount of the asset group as of March 31, 2020, the date of our evaluation, indicating cash flows were expected to be sufficient to recover the carrying amount of the Casper terminal asset group. Accordingly, we did not recognize any impairment of our asset. We have not observed any events or circumstances subsequent to our analysis that would suggest the fair value of our Casper terminal is below its carrying amount as of September 30, 2020.
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DEBT |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEBT | DEBT In November 2018, we amended and restated our senior secured credit agreement, which we originally established at the time of our initial public offering in October 2014. We refer to the amended and restated senior secured credit agreement executed in November 2018 as the Credit Agreement and the original senior secured credit agreement as the Previous Credit Agreement. Our Credit Agreement is a $385 million revolving credit facility (subject to limits set forth therein) with Citibank, N.A., as administrative agent, and a syndicate of lenders. Our Credit Agreement amends and restates in its entirety our Previous Credit Agreement. Our Credit Agreement is a four year committed facility that initially matures on November 2, 2022. Our Credit Agreement provides us with the ability to request two one-year maturity date extensions, subject to the satisfaction of certain conditions, and allows us the option to increase the maximum amount of credit available up to a total facility size of $500 million, subject to receiving increased commitments from lenders and satisfaction of certain conditions. Our Credit Agreement and any issuances of letters of credit are available for working capital, capital expenditures, general partnership purposes and continue the indebtedness outstanding under the Previous Credit Agreement. The Credit Agreement includes an aggregate $20 million sublimit for standby letters of credit and a $20 million sublimit for swingline loans. Obligations under the Credit Agreement are guaranteed by our restricted subsidiaries (as such term is defined therein) and are secured by a first priority lien on our assets and those of our restricted subsidiaries, other than certain excluded assets. Our long-term debt balances included the following components as of the specified dates:
We determined the capacity available to us under the terms of our Credit Agreement was as follows as of the specified dates:
(1) Pursuant to the terms of our Credit Agreement, our borrowing capacity, currently, is limited to 4.5 times our trailing 12-month consolidated EBITDA, which equates to $37.2 million and $28.8 million of borrowing capacity available at September 30, 2020 and December 31, 2019, respectively. The weighted average interest rate on our outstanding indebtedness was 2.91% and 4.24% at September 30, 2020 and December 31, 2019, respectively, without consideration to the effect of our derivative contracts. In addition to the interest we incur on our outstanding indebtedness, we pay commitment fees of 0.50% on unused commitments, which rate will vary based on our consolidated net leverage ratio, as defined in our Credit Agreement. At September 30, 2020, we were in compliance with the covenants set forth in our Credit Agreement. Interest expense associated with our outstanding indebtedness was as follows for the specified periods:
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COLLABORATIVE ARRANGEMENT |
9 Months Ended |
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Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
COLLABORATIVE ARRANGEMENT | COLLABORATIVE ARRANGEMENTWe entered into a facilities connection agreement in 2014 with Gibson under which Gibson developed, constructed and operates a pipeline and related facilities connected to our Hardisty terminal. Gibson’s storage terminal is the exclusive means by which our Hardisty terminal receives crude oil. Subject to certain limited exceptions regarding manifest train facilities, our Hardisty terminal is the exclusive means by which crude oil from Gibson’s Hardisty storage terminal may be transported by rail. We remit pipeline fees to Gibson for the transportation of crude oil to our Hardisty terminal based on a predetermined formula. Pursuant to our arrangement with Gibson, we incurred pipeline fees of $5.9 million and $5.4 million for the three months ended September 30, 2020 and 2019, and $17.7 million and $15.4 million for the nine months ended September 30, 2020 and 2019, respectively, which are presented as “Pipeline fees” in our consolidated statements of operations. We have included a liability related to this agreement in “Other Current Liabilities” on our consolidated balance sheets of $3.1 million and $1.2 million at September 30, 2020 and December 31, 2019. |
NONCONSOLIDATED VARIABLE INTEREST ENTITIES |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NONCONSOLIDATED VARIABLE INTEREST ENTITIES | NONCONSOLIDATED VARIABLE INTEREST ENTITIES We have entered into purchase, assignment and assumption agreements to assign payment and performance obligations for certain operating lease agreements with lessors, as well as customer fleet service payments related to these operating leases, with unconsolidated entities in which we have variable interests. These variable interest entities, or VIEs, include LRT Logistics Funding LLC, USD Fleet Funding LLC, USD Fleet Funding Canada Inc., and USD Logistics Funding Canada Inc. We treat these entities as variable interests under the applicable accounting guidance due to their having an insufficient amount of equity invested at risk to finance their activities without additional subordinated financial support. We are not the primary beneficiary of the VIEs, as we do not have the power to direct the activities that most significantly affect the economic performance of the VIEs, nor do we have the power to remove the managing member under the terms of the VIEs’ limited liability company agreements. Accordingly, we do not consolidate the results of the VIEs in our consolidated financial statements. The following table summarizes the total assets and liabilities between us and the VIEs as reflected in our consolidated balance sheets at September 30, 2020 and December 31, 2019, as well as our maximum exposure to losses from entities in which we have a variable interest, but are not the primary beneficiary. Generally, our maximum exposure to losses is limited to amounts receivable for services we provided, reduced by any deferred revenues.
We have assigned certain payment and performance obligations under the leases and master fleet service agreements for 1,232 railcars to the VIEs, but we have retained certain rights and obligations with respect to the servicing of these railcars. During the quarter ended September 30, 2020, we provided no explicit or implicit financial or other support to these VIEs that were not previously contractually required.
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TRANSACTIONS WITH RELATED PARTIES |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TRANSACTIONS WITH RELATED PARTIES | TRANSACTIONS WITH RELATED PARTIES Nature of Relationship with Related Parties USD is engaged in designing, developing, owning and managing large-scale multi-modal logistics centers and other energy-related infrastructure across North America. USD is also the sole owner of USDG and the ultimate parent of our general partner. USD is owned by Energy Capital Partners, Goldman Sachs and certain members of its management. USDG is the sole owner of our general partner and at September 30, 2020, owns 11,557,090 of our common units representing a 42.3% limited partner interest in us. As of September 30, 2020, a value of up to $10.0 million of these common units were pledged as collateral under USDG’s letter of credit facility. USDG also provides us with general and administrative support services necessary for the operation and management of our business. USD Partners GP LLC, our general partner, currently owns all 461,136 of our general partner units representing a 1.7% general partner interest in us, as well as all of our incentive distribution rights. Pursuant to our partnership agreement, our general partner is responsible for our overall governance and operations. However, our general partner has no obligation to, does not intend to and has not implied that it would, provide financial support to or fund cash flow deficits of the Partnership. USD Marketing LLC, or USDM, is a wholly-owned subsidiary of USDG organized to promote contracting for services provided by our terminals and to facilitate the marketing of customer products. USD Terminals Canada II ULC, or USDTC II, is an indirect, wholly-owned Canadian subsidiary of USDG, organized for the purposes of pursuing expansion and other development opportunities associated with our Hardisty Terminal, pursuant to the Development Rights and Cooperation agreement between our wholly-owned subsidiary USD Terminals Canada ULC, or USDTC, and USDG. USDTC owns the legacy crude oil loading facility we refer to as the Hardisty terminal. USDTC II completed construction of the Hardisty South expansion (“Hardisty South”) which commenced operations in January 2019. Hardisty South, which is owned and operated by USDTC II, added one and one-half 120-railcar unit trains of transloading capacity per day, or approximately 112,500 barrels per day, of takeaway capacity to the terminal by modifying the existing loading rack and building additional infrastructure and trackage. Omnibus Agreement We are party to an omnibus agreement with USD, USDG and certain of their subsidiaries, or Omnibus Agreement, including our general partner, pursuant to which we obtain and make payments for specified services provided to us and for out-of-pocket costs incurred on our behalf. We pay USDG, in equal monthly installments, the annual amount USDG estimates will be payable by us during the calendar year for providing services for our benefit. The Omnibus Agreement provides that this amount may be adjusted annually to reflect, among other things, changes in the scope of the general and administrative services provided to us due to a contribution, acquisition or disposition of assets by us or our subsidiaries, or for changes in any law, rule or regulation applicable to us, which affects the cost of providing the general and administrative services. We also reimburse USDG for any out-of-pocket costs and expenses incurred on our behalf in providing general and administrative services to us. This reimbursement is in addition to the amounts we pay to reimburse our general partner and its affiliates for certain costs and expenses incurred on our behalf for managing our business and operations, as required by our partnership agreement. The total amounts charged to us under the Omnibus Agreement for the three months ended September 30, 2020 and 2019 was $1.7 million and $1.4 million, respectively, and for the nine months ended September 30, 2020 and 2019 was $5.6 million and $6.1 million, respectively, which amounts are included in “Selling, general and administrative — related party” in our consolidated statements of operations. We had a payable balance of $0.3 million and $0.4 million with respect to these costs at September 30, 2020 and December 31, 2019, respectively included in “Accounts payable and accrued expenses — related party” in our consolidated balance sheets. Marketing Services Agreement In connection with our purchase of the Stroud terminal, we entered into a Marketing Services Agreement with USDM, in May 2017, whereby we granted USDM the right to market the capacity at the Stroud terminal in excess of the original capacity of our initial customer in exchange for a nominal per barrel fee. USDM is obligated to fund any related capital costs associated with increasing the throughput or efficiency of the terminal to handle additional throughput. Upon expiration of our contract with the initial Stroud customer in June 2020, the same marketing rights now apply to all throughput at the Stroud terminal in excess of the throughput necessary for the Stroud terminal to generate Adjusted EBITDA that is at least equal to the average monthly Adjusted EBITDA derived from the initial Stroud customer during the 12 months prior to expiration. We also granted USDG the right to develop other projects at the Stroud terminal in exchange for the payment to us of market-based compensation for the use of our property for such development projects. Any such development projects would be wholly-owned by USDG and would be subject to our existing right of first offer with respect to midstream projects developed by USDG. Payments made under the Marketing Services Agreement during the periods presented in this Report are discussed below under the heading “Related Party Revenue and Deferred Revenue.” Hardisty Terminal Services Agreement We entered into a terminal services agreement with USDTC II during the third quarter of 2019, whereby Hardisty South will provide terminalling services for a third-party customer of our Hardisty terminal for contracted capacity that exceeds the transloading capacity currently available. We incurred $2.1 million and $6.2 million of expenses pursuant to the arrangement for the three and nine months ended September 30, 2020 and $2.5 million for the three and nine months ended September 30, 2019, which amounts are included in “Operating and maintenance expense — related party” in our consolidated statements of operations. These costs represent the same rate, on a per barrel basis, that we received as revenue from our third-party customer, which is included in “Terminalling Services” revenue in our consolidated statements of operations. Additionally, in conjunction with this agreement, we recorded a contract asset of $1.2 million at September 30, 2020 on our consolidated balance sheet in “Other non-current assets — related party”, representing long-term prepaid expense associated with this agreement due to tiered billing provisions in the related terminalling services agreements. We had no recorded asset at December 31, 2019, associated with this agreement. Hardisty Shared Facilities Agreement USDTC facilitates the provision of services on behalf of USDTC II pursuant to the terms of a shared facilities agreement, which includes all subcontracted railcar loading, operating, maintenance, pipeline and management services for the entire Hardisty terminal, including Hardisty South owned by USDTC II. USDTC passes through a proportionate amount of the cost of such services to USDTC II. Our financial statements only reflect the cost incurred by USDTC. Related Party Revenue and Deferred Revenue We have agreements to provide terminalling and fleet services for USDM with respect to our Hardisty terminal and terminalling services with respect to our Stroud terminal, which also include reimbursement to us for certain out-of-pocket expenses we incur. USDM assumed the rights and obligations for terminalling capacity at our Hardisty terminal from another customer in June 2017 to facilitate the origination of crude oil barrels by the Stroud customer from our Hardisty terminal for delivery to the Stroud terminal. As a result of USDM assuming these rights and obligations and in order to accommodate the needs of the Stroud customer, the contracted term for the capacity held by USDM at our Hardisty terminal was extended from June 30, 2019 to June 30, 2020. The terms and conditions of these agreements were similar to the terms and conditions of agreements we have with other parties at the Hardisty terminal that are not related to us. USDM’s agreement with the third party customer was renewed and extended, effective July 1, 2020, and USDM subsequently assigned its terminalling services agreement with the third party customer directly to us and is therefore no longer a customer at our Hardisty terminal. USDM controlled approximately 25% of the available monthly capacity of the Hardisty terminal through June 30, 2020. In connection with our purchase of the Stroud terminal, we also entered into a Marketing Services Agreement with USDM, as discussed above. Pursuant to the terms of the agreement, we receive a fixed amount per barrel from USDM in exchange for marketing the additional capacity available at the Stroud terminal. We also received revenue for providing additional terminalling services at our Hardisty terminal to USDM pursuant to the terms of its existing agreements with us. Additionally, effective January 2019, we entered into a six month terminalling services agreement with USDM at our Casper terminal to maximize utilization of available terminalling and storage capacity by offering these services to customers on an uncommitted basis at current market rates. This agreement automatically renews for successive periods of six months on an evergreen basis unless otherwise canceled by either party. We include amounts received pursuant to these arrangements as revenue in the table below under “Terminalling services — related party” in our consolidated statements of operations. Additionally, we received revenue from USDM for the lease of 200 railcars pursuant to the terms of an existing agreement with us, which is included in the table below under “Fleet leases — related party” and “Fleet services — related party” and in our consolidated statements of operations. Our related party revenues from USD and affiliates are presented below in the following table for the indicated periods:
We had the following amounts outstanding with USD and affiliates on our consolidated balance sheets as presented below in the following table for the indicated periods:
(1)Includes amounts payable to a related party pursuant to the Hardisty Terminal Services Agreement, discussed above, as well as other accounts payable related party amounts associated with our terminalling services business. Does not include amounts payable to related parties associated with the Omnibus Agreement, as discussed above. (2)Includes a contract asset associated with a lease agreement with USDM and cumulative revenue that has been recognized in advance of billing the customer due to tiered billing provisions. Refer to Note 4. Revenue for further discussion. Also includes a contract asset associated with the Hardisty Terminal Services Agreement with USDTC II, as discussed above. (3)Represents deferred revenues associated with our terminalling and fleet services agreements with USD and affiliates for amounts we have collected from them for their prepaid leases and prepaid minimum volume commitment fees. Cash Distributions We paid the following aggregate cash distributions to USDG as a holder of our common units, and with respect to the February 2020 payment date, the sole owner of our subordinated units and to USD Partners GP LLC as sole holder of our general partner interest and IDRs.
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COMMITMENTS AND CONTINGENCIES |
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Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIESFrom time to time, we may be involved in legal, tax, regulatory and other proceedings in the ordinary course of business. We do not believe that we are currently a party to any such proceedings that will have a material adverse impact on our financial condition or results of operations. |
SEGMENT REPORTING |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT REPORTING | SEGMENT REPORTING We manage our business in two reportable segments: Terminalling services and Fleet services. The Terminalling services segment charges minimum monthly commitment fees under multi-year take-or-pay contracts to load and unload various grades of crude oil into and from railcars, as well as fixed fees per gallon to transload ethanol from railcars, including related logistics services. We also facilitate rail-to-pipeline shipments of crude oil. Our Terminalling services segment also charges minimum monthly fees to store crude oil in tanks that are leased to our customers. The Fleet services segment provides customers with railcars and fleet services related to the transportation of liquid hydrocarbons and biofuels under multi-year, take-or-pay contracts. Corporate activities are not considered a reportable segment, but are included to present shared services and financing activities which are not allocated to our established reporting segments. Our segments offer different services and are managed accordingly. Our chief operating decision maker, or CODM, regularly reviews financial information about both segments in order to allocate resources and evaluate performance. Our CODM assesses segment performance based on the cash flows produced by our established reporting segments using Segment Adjusted EBITDA. Segment Adjusted EBITDA is a measure calculated in accordance with GAAP. We define Segment Adjusted EBITDA as “Net income (loss)” of each segment adjusted for depreciation and amortization, interest, income taxes, changes in contract assets and liabilities, deferred revenues, foreign currency transaction gains and losses and other items which do not affect the underlying cash flows produced by our businesses. As such, we have concluded that disaggregating revenue by reporting segments appropriately depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.
Segment Adjusted EBITDA The following tables present the computation of Segment Adjusted EBITDA, which is a measure determined in accordance with GAAP, for each of our segments for the periods indicated:
(1) Represents interest income associated with our Terminalling Services segment that is included in “Other income, net” in our consolidated statements of operations. (2) Represents foreign exchange transaction amounts associated with activities between our U.S. and Canadian subsidiaries. (3) Represents the change in non-cash contract assets and liabilities associated with revenue recognized at blended rates based on tiered rate structures in certain of our customer contracts and deferred revenue associated with deficiency credits that are expected to be used in the future prior to their expiration. Amounts presented are net of the corresponding prepaid Gibson pipeline fee that will be recognized as expense concurrently with the recognition of revenue.
(1) Represents interest income associated with our Fleet Services segment that is included in “Other income, net” in our consolidated statements of operations. (2) Represents foreign exchange transaction amounts associated with activities between our U.S. and Canadian subsidiaries.
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INCOME TAXES |
9 Months Ended |
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Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES CARES Act On March 27, 2020, the CARES Act was signed into law. The CARES Act is an emergency economic stimulus package enacted in response to the coronavirus outbreak which, among other measures, contains numerous income tax provisions. Some of these tax provisions are expected to be effective retroactively for tax years ending before the date of enactment. For us, the most significant change included in the CARES Act was the impact to U.S. net operating loss carryback provisions. U.S. net operating losses incurred in tax years 2018, 2019, and 2020 can now be carried back to the preceding five tax years and may be used to fully offset taxable income (i.e. they are not subject to the 80 percent net income offset limitation of Section 172 of the U.S. Tax Code). As a result of these CARES Act changes, for the three and nine months ended September 30, 2020 we recognized a current tax benefit of $3 thousand and $533 thousand, respectively, for a claimable tax refund by carrying back U.S. net operating losses incurred in 2018, 2019, and the first nine months of 2020. We also recognized a one-time deferred tax expense of $46 thousand in the first quarter of 2020 due to the net effect of utilizing all U.S. net operating loss deferred tax assets and releasing the corresponding U.S. valuation allowance as of December 31, 2019. We expect to recognize an additional tax benefit in 2020 due to anticipated tax losses. The tax impacts of the CARES Act were computed with the best available information, and will be adjusted after the 2020 U.S. tax return is finalized. However, we do not expect these adjustments to result in a material change to the tax provision in future periods. Goodwill Impairment Tax Impact For the nine months ended September 30, 2020, we recognized a loss before income taxes of $27.0 million due primarily to a goodwill impairment loss recognized during the first quarter of 2020 associated with our Casper terminal included in our terminalling services segment. Refer to Note 8. Goodwill and Intangible Assets for more information. Our tax provision for the nine months ended September 30, 2020 was not impacted by the goodwill impairment loss as our terminalling services activities in the U.S. are treated as a partnership for U.S. federal and most state income tax purposes, with each partner being separately taxed on their share of our taxable income. Refer to Note 19. Supplemental Cash Flow Information for information regarding amounts paid for income taxes.
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DERIVATIVE FINANCIAL INSTRUMENTS |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS Our net income, or loss, and cash flows are subject to fluctuations resulting from changes in interest rates on our variable rate debt obligations and from changes in foreign currency exchange rates, particularly with respect to the U.S. dollar and the Canadian dollar. In limited circumstances, we may also hold long positions in the commodities we handle on behalf of our customers, which exposes us to commodity price risk. We use derivative financial instruments, including futures, forwards, swaps, options and other financial instruments with similar characteristics, to manage the risks associated with market fluctuations in interest rates, foreign currency exchange rates and commodity prices, as well as to reduce volatility in our cash flows. We have not historically designated, nor do we expect to designate, our derivative financial instruments as hedges of the underlying risk exposure. All of our financial instruments are employed in connection with an underlying asset, liability and/or forecasted transaction and are not entered into for speculative purposes. Interest Rate Derivatives We use interest rate derivative financial instruments to partially mitigate our exposure to interest rate fluctuations on our variable rate debt. Under our Credit Agreement, one-month LIBOR is used as the index rate for the interest we are charged on amounts borrowed under our Revolving Credit Facility. In November 2017, we entered into a five-year interest rate collar contract with a $100 million notional value. The collar established a range where we paid the counterparty if the one-month Overnight Index Swap, or OIS, fell below the established floor rate of 1.70%, and the counterparty paid us if the one-month OIS rate exceeded the established ceiling rate of 2.50%. The collar settled monthly through the termination date. No payments or receipts were exchanged on the interest rate collar contracts unless interest rates rose above or fell below the predetermined ceiling or floor rate. Prior to February 2019, our interest rate collar contract discussed above was based on one-month LIBOR, which is being phased out by financial institutions in the United States. In September 2020, we terminated our existing interest rate collar discussed above and simultaneously entered into a new interest rate swap that was made effective as of August 2020. In lieu of settling the liability value of the existing interest rate collar agreement of $3.5 million that existed at the time the agreement was terminated, the value of the liability was rolled into the fixed rate of the new interest rate swap agreement. The new interest rate swap is a five-year contract with a $150 million notional value that fixes our one-month LIBOR to 0.84% for the notional value of the swap agreement instead of the variable rate that we pay under our Credit Agreement. The swap settles monthly through the termination date in August 2025. Derivative Positions We record all of our derivative financial instruments at their fair values in the line items specified below within our consolidated balance sheets, the amounts of which were as follows at the dates indicated:
We have not designated our derivative financial instruments as hedges of our interest rate exposure. As a result, changes in the fair value of these derivatives are recorded as “Loss associated with derivative instruments” in our consolidated statements of operations. The gains or losses associated with changes in the fair value of our derivative contracts do not affect our cash flows until the underlying contract is settled by making or receiving a payment to or from the counterparty. In connection with our derivative activities, we recognized the following amounts during the periods presented:
We determine the fair value of our derivative financial instruments using third party pricing information that is derived from observable market inputs, which we classify as level 2 with respect to the fair value hierarchy. The following table presents summarized information about the fair values of our outstanding interest rate contracts for the periods indicated:
We record the fair market value of our derivative financial instruments in our consolidated balance sheets as current and non-current assets or liabilities on a net basis by counterparty. The terms of the International Swaps and Derivatives Association Master Agreement, which governs our financial contracts, include master netting agreements that allow the parties to our derivative contracts to elect net settlement in respect of all transactions under the agreements. The effect of the rights of offset are presented in the tables below as of the dates indicated.
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PARTNERS' CAPITAL |
9 Months Ended |
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Sep. 30, 2020 | |
Equity [Abstract] | |
PARTNERS' CAPITAL | PARTNERS’ CAPITAL Our common units represent and subordinated units represented limited partner interests in us. The holders of common units are and subordinated units were entitled to participate in partnership distributions and to exercise the rights and privileges available to limited partners under our partnership agreement. In February 2019, pursuant to the terms set forth in our partnership agreement, the fourth and final vesting tranche of 38,750 Class A units vested and was converted into our common units. We determined that each vested Class A unit would receive one common unit at conversion based upon our distributions paid for the four preceding quarters. As a result, the final tranche of 38,750 Class A units were converted into 38,750 common units and no Class A units remain outstanding at September 30, 2020. Our Class A units were limited partner interests in us that entitled the holders to nonforfeitable distributions that were equivalent to the distributions paid with respect to our common units (excluding any arrearages of unpaid minimum quarterly distributions from prior quarters) and, as a result, were considered participating securities. Our Class A units did not have voting rights and vested in four equal annual installments over the four years following the consummation of our initial public offering, or IPO, only if we grew our annualized distributions each year. If we did not achieve positive distribution growth in any of those years, the Class A units that would otherwise vest for that year would be forfeited. The Class A units contained a conversion feature, which, upon vesting, provided for the conversion of the Class A units into common units based on a conversion factor that was tied to the level of our distribution growth for the applicable year. The conversion factor was 1.00 for the first vesting tranche, 1.50 for the second vesting tranche, 1.00 for the third vesting tranche and 1.00 for the fourth vesting tranche. All of our subordinated units converted into common units on a one-for-one basis in separate sequential tranches. Each tranche was comprised of 20.0% of the subordinated units issued in conjunction with our IPO. Each separate tranche was eligible to convert on or after December 31, 2015 (but no more frequently than once in any twelve-month period), provided on such date: (i) distributions of available cash from operating surplus on each of the outstanding common units, Class A units, subordinated units and general partner units equaled or exceeded $1.15 per unit (the annualized minimum quarterly distribution) for the four quarter period immediately preceding that date; (ii) the adjusted operating surplus generated during the four quarter period immediately preceding that date equaled or exceeded the sum of $1.15 per unit (the annualized minimum quarterly distribution) on all of the common units, Class A units, subordinated units and general partner units outstanding during that period on a fully diluted basis; and (iii) there were no arrearages in the payment of the minimum quarterly distribution on our common units. For each successive tranche, the four quarter period specified in clauses (i) and (ii) above must have commenced after the four quarter period applicable to any prior tranche of subordinated units. In February 2020, pursuant to the terms set forth in our partnership agreement, we converted the fifth and final tranche of 2,092,709 of our subordinated units into common units upon satisfaction of the conditions established for conversion. Our partnership agreement provides that, while any subordinated units remained outstanding, holders of our common units had the right to receive distributions of available cash from operating surplus each quarter in an amount equal to our minimum quarterly distribution per unit, plus (with respect to the common units) any arrearages in the payment of the minimum quarterly distribution on the common units from prior quarters, before any distributions of available cash from operating surplus were made on the subordinated units. Pursuant to the terms of the USD Partners LP Amended and Restated 2014 Long-Term Incentive Plan, which we refer to as the A/R LTIP, our phantom unit awards, or Phantom Units, granted to directors and employees of our general partner and its affiliates, which are classified as equity, are converted into our common units upon vesting. Equity-classified Phantom Units totaling 519,350 vested during the first nine months in 2020, of which 339,736 were converted into our common units after 179,614 Phantom Units were withheld from participants for the payment of applicable employment-related withholding taxes. The conversion of these Phantom Units did not have any economic impact on Partners’ Capital, since the economic impact is recognized over the vesting period. Additional information and discussion regarding our unit based compensation plans is included below in Note 18. Unit Based Compensation. The board of directors of our general partner has adopted a cash distribution policy pursuant to which we intend to distribute at least the minimum quarterly distribution of $0.2875 per unit ($1.15 per unit on an annualized basis) on all of our units to the extent we have sufficient available cash after the establishment of cash reserves and the payment of our expenses, including payments to our general partner and its affiliates. The board of directors of our general partner may change our distribution policy at any time and from time to time. Our partnership agreement does not require us to pay cash distributions on a quarterly or other basis. The amount of distributions we pay under our cash distribution policy and the decision to make any distribution are determined by our general partner. For the quarter ended September 30, 2020, the board of directors of our general partner determined that we had sufficient available cash after the establishment of cash reserves and the payment of our expenses to distribute $0.111 per unit on all of our units.
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UNIT BASED COMPENSATION |
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Share-based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
UNIT BASED COMPENSATION | UNIT BASED COMPENSATION Class A units Our Class A units vested annually over a four year period when established distribution growth target thresholds were met during each year of the four year vesting period. In February 2019, pursuant to the terms set forth in our partnership agreement, the fourth and final vesting tranche of 38,750 Class A units vested based upon our distributions paid for the four preceding quarters and were converted on a basis of one common unit for each Class A unit. As a result, we converted 38,750 Class A units into 38,750 common units in 2019 and no Class A units remain outstanding at September 30, 2020.
We recognized compensation expense in “Selling, general and administrative” with regard to our Class A units for the following amounts during the periods presented:
For the three and nine months ended September 30, 2020 and 2019 we had no forfeitures of Class A units. We elected to account for actual forfeitures as they occurred rather than applying an estimated forfeiture rate when determining compensation expense. Each holder of a Class A unit was entitled to nonforfeitable cash distributions equal to the product of the number of Class A units outstanding for the participant and the cash distribution per unit paid to our common unitholders. These distributions were included in “Distributions” as presented in our consolidated statements of cash flows and our consolidated statements of partners’ capital. However, any distributions paid on Class A units that were forfeited were reclassified to unit based compensation expense when we determined that the Class A units were not expected to vest. We recognized no compensation expense for the three and nine months ended September 30, 2020 or 2019, for distributions paid on Class A units that were forfeited. Long-term Incentive Plan In 2020 and 2019, the board of directors of our general partner, acting in its capacity as our general partner, approved the grant of 694,140 and 633,637 Phantom Units, respectively, to directors and employees of our general partner and its affiliates under our A/R LTIP. At September 30, 2020, we had 943,489 Phantom Units remaining available for issuance. The Phantom Units are subject to all of the terms and conditions of the A/R LTIP and the Phantom Unit award agreements, which are collectively referred to as the Award Agreements. Award amounts for each of the grants are generally determined by reference to a specified dollar amount based on an allocation formula which included a percentage multiplier of the grantee’s base salary, among other factors, converted to a number of units based on the closing price of one of our common units preceding the grant date, as determined by the board of directors of our general partner and quoted on the NYSE. Phantom Unit awards generally represent rights to receive our common units upon vesting. However, with respect to the awards granted to directors and employees of our general partner and its affiliates domiciled in Canada, for each Phantom Unit that vests, a participant is entitled to receive cash for an amount equivalent to the closing market price of one of our common units on the vesting date. Each Phantom Unit granted under the Award Agreements includes an accompanying distribution equivalent right, or DER, which entitles each participant to receive payments at a per unit rate equal in amount to the per unit rate for any distributions we make with respect to our common units. The Award Agreements granted to employees of our general partner and its affiliates generally contemplate that the individual grants of Phantom Units will vest in equal annual installments based on the grantee’s continued employment through the vesting dates specified in the Award Agreements, subject to acceleration upon the grantee’s death or disability, or involuntary termination in connection with a change in control of the Partnership or our general partner. Awards to independent directors of the board of our general partner and an independent consultant typically vest over a one year period following the grant date. The following tables present the award activity for our Equity-classified Phantom Units:
The following tables present the award activity for our Liability-classified Phantom Units:
The fair value of each Phantom Unit on the grant date is equal to the closing market price of our common units on the grant date. We account for the Phantom Unit grants to independent directors and employees of our general partner and its affiliates domiciled in Canada that are paid out in cash upon vesting, throughout the requisite vesting period, by revaluing the unvested Phantom Units outstanding at the end of each reporting period and recording a charge to compensation expense in “Selling, general and administrative” in our consolidated statements of operations and recognizing a liability in “Other current liabilities” in our consolidated balance sheets. With respect to the Phantom Units granted to consultants, independent directors and employees of our general partner and its affiliates domiciled in the United States, we amortize the initial grant date fair value over the requisite service period using the straight-line method with a charge to compensation expense in “Selling, general and administrative” in our consolidated statements of operations, with an offset to common units within the Partners’ Capital section of our consolidated balance sheet. For the three months ended September 30, 2020 and 2019, we recognized $1.6 million and $1.5 million, respectively, and for the nine months ended September 30, 2020 and 2019, we recognized $4.9 million and $4.5 million, respectively, of compensation expense associated with outstanding Phantom Units. As of September 30, 2020, we have unrecognized compensation expense associated with our outstanding Phantom Units totaling $11.3 million, which we expect to recognize over a weighted average period of 2.52 years. We have elected to account for actual forfeitures as they occur rather than using an estimated forfeiture rate to determine the number of awards we expect to vest. We made payments to holders of the Phantom Units pursuant to the associated DERs we granted to them under the Award Agreements as follows:
(1) We had no significant reclassifications to unit based compensation expense for DERs paid in relation to Phantom Units that have been forfeited for the three months ended September 30, 2020 and 2019. We reclassified $57 thousand and $8 thousand for the nine months ended September 30, 2020 and 2019, respectively, for forfeitures.
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SUPPLEMENTAL CASH FLOW INFORMATION |
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SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION The following table provides supplemental cash flow information for the periods indicated:
The following table provides supplemental information for the item labeled “Other” in the “Net cash provided by operating activities” section of our consolidated statements of cash flows:
Non-cash activities Leases We recorded $3.1 million of right-of-use lease assets and the associated liabilities on our consolidated balance sheet as of September 30, 2020, representing non-cash activities resulting from new or extended lease agreements. See Note 7. Leases for further discussion. Non-cash Investing Activities For the nine months ended September 30, 2020 and 2019, we had non-cash investing activities for capital expenditures for property and equipment that were financed through accounts payable and accrued expenses as presented in the table below for the periods indicated:
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SUBSEQUENT EVENTS |
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Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Distribution to Partners On October 22, 2020, the board of directors of USD Partners GP LLC, acting in its capacity as our general partner, declared a quarterly cash distribution payable of $0.111 per unit, or $0.444 per unit on an annualized basis, for the three months ended September 30, 2020. Consistent with the distribution declared for the first quarter of 2020, the distribution represents a decrease of $0.259 per unit, or 70.0% below the distribution with respect to the fourth quarter of 2019. The distribution will be paid on November 13, 2020, to unitholders of record at the close of business on November 3, 2020. The distribution will include payment of $1.7 million to our public common unitholders, $1.3 million to USDG as a holder of our common units and $51 thousand to USD Partners GP LLC as a holder of the general partner interest. Revolving Credit Facility Activity Subsequent to September 30, 2020, we made additional repayments of $4.0 million under the terms of our existing $385 million Revolving Credit Facility. The Credit Agreement provides for borrowings of up to $385.0 million, expandable to $500.0 million, with lender consent, and expires on November 2, 2022. As of November 2, 2020, we had amounts outstanding of $205.0 million under the Revolving Credit Facility and $180.0 million available for borrowings under the Revolving Credit Facility based on capacity that is subject to certain covenants. Refer to Note 9. Debt for more information.
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ORGANIZATION AND BASIS OF PRESENTATION (Policies) |
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Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of PresentationOur accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or GAAP, for interim consolidated financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all the information and disclosures required by GAAP for complete consolidated financial statements. In the opinion of our management, they contain all adjustments, including adjustments made associated with the provisions of the CARES Act discussed above, and consisting only of normal recurring adjustments, which our management considers necessary to present fairly our financial position as of September 30, 2020, our results of operations for the three and nine months ended September 30, 2020 and 2019, and our cash flows for the nine months ended September 30, 2020 and 2019. We derived our consolidated balance sheet as of December 31, 2019 from the audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019. Our results of operations for the three and nine months ended September 30, 2020 and 2019 should not be taken as indicative of the results to be expected for the full year due to fluctuations in the supply of and demand for crude oil and biofuels, timing and completion of acquisitions, if any, changes in the fair market value of our derivative instruments and the impact of fluctuations in foreign currency exchange rates. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto presented in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019. |
Foreign Currency Translation | Foreign Currency Translation We conduct a substantial portion of our operations in Canada, which we account for in the local currency, the Canadian dollar. We translate most Canadian dollar denominated balance sheet accounts into our reporting currency, the U.S. dollar, at the end of period exchange rate, while most accounts in our statement of operations are translated into our reporting currency based on the average exchange rate for each monthly period. Fluctuations in the exchange rate between the Canadian dollar and the U.S. dollar can create variability in the amounts we translate and report in U.S. dollars. Within these consolidated financial statements, we denote amounts denominated in Canadian dollars with “C$” immediately prior to the stated amount.
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Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements Intangibles - Goodwill and Other (ASU 2017-04) In January 2017, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update No. 2017-04, or ASU 2017-04, which amends ASC Topic 350 to modify the concept of impairment from the condition that exists when the carrying amount of goodwill exceeds its implied fair value to the condition that exists when the carrying amount of a reporting unit exceeds its fair value. Pursuant to the provisions of ASU 2017-04, an entity will no longer determine goodwill impairment by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. Rather, an entity will recognize an impairment loss for the amount by which the carrying amount of a reporting unit exceeds the reporting unit’s fair value. However, the loss recognized cannot exceed the total amount of goodwill allocated to that reporting unit. The pronouncement is effective for fiscal years beginning after December 15, 2019, or for any interim impairment testing within those fiscal years and is required to be applied prospectively, with early adoption permitted. We adopted the provisions of ASU 2017-04 on January 1, 2020. In March 2020, we tested the goodwill associated with our Casper terminal for impairment due to there being circumstances that suggested the fair value of the Casper reporting unit was less than its carrying amount. The circumstances identified related to the overall downturn in the crude market and the decline in the demand for petroleum products, which could lead to delays or reductions of expected throughput levels and changes in expectations for current and future contracts at the Casper terminal. Refer to Note 1. Organization and Basis of Presentation — Recent Events for more information. This standard requires us to recognize an impairment loss for the amount by which the carrying amount of our Casper terminal exceeds the fair value of the terminal. Accordingly, we have recognized an impairment loss in our goodwill asset for the nine months ended September 30, 2020. Refer to Note 8. Goodwill and Intangible assets for more information. Recent Accounting Pronouncements Not Yet Adopted Income Taxes (ASU 2019-12) In December 2019, the FASB issued Accounting Standards Update No. 2019-12, or ASU 2019-12, which amends ASC Topic 740 by removing certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. It also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. In addition, under the provisions of ASU 2019-12, single-member limited liability companies and similar disregarded entities that are not subject to income tax are not required to recognize an allocation of consolidated income tax expense in their separate financial statements, but they could elect to do so. The pronouncement is effective for fiscal years beginning after December 15, 2020, or for any interim periods within those fiscal years, with early adoption permitted. We do not expect to early adopt the provisions of this standard, nor do we anticipate that our adoption of this standard will have a material impact on our financial statements.
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NET INCOME (LOSS) PER LIMITED PARTNER INTEREST (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of distribution method to limited and general partners | The formula for distributing available cash as set forth in our partnership agreement is as follows:
(1)Calculated as if our general partner holds the original 2% general partner interest in us, which is currently at 1.7%.
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Schedule of earnings per share, basic and diluted | We determined basic and diluted net income (loss) per limited partner unit as set forth in the following tables:
(1)Represents net income allocated to each class of units based on the actual ownership of the Partnership during the period. There were no amounts attributed to the general partner for its incentive distribution rights. (2)Represents the distributions payable for the period based upon the quarterly distribution amounts of $0.111 per unit or $0.444 on an annualized basis. Amounts presented for each class of units include a proportionate amount of the $152 thousand distributable to holders of the Equity classified Phantom Units pursuant to the distribution equivalent rights granted under the USD Partners LP 2014 Amended and Restated Long-Term Incentive Plan. (3)Represents the weighted average units outstanding for the period. (4)Represents the total distributable earnings divided by the weighted average number of units outstanding for the period. (5)Represents the additional amount per unit necessary to distribute the excess net income for the period among our limited partners and our general partners according to the distribution formula for available cash as set forth in our partnership agreement.. (6)Our computation of net income per limited partner unit excludes the effects of 1,366,355 equity-classified phantom unit awards outstanding as they were anti-dilutive for the period presented. (7)In February 2019, pursuant to the terms set forth in our partnership agreement, the fourth and final vesting tranche of 38,750 Class A units vested and were converted into Common units. Additionally, in February 2020, the final tranche of 2,092,709 subordinated units were converted into common units. Refer to Note 17. Partners Capital for more information.
(1)Represents net income allocated to each class of units based on the actual ownership of the Partnership during the period. The net income for each class of limited partner has been reduced by its proportionate amount of the $181 thousand attributed to the general partner for its incentive distribution rights. (2)Represents the distributions paid for the period based upon the quarterly distribution amount of $0.3675 per unit or $1.47 per unit on an annualized basis. Amounts presented for each class of units include a proportionate amount of the $474 thousand distributable to holders of the Equity classified Phantom Units pursuant to the distribution equivalent rights granted under the USD Partners Amended and Restated LP 2014 Long-Term Incentive Plan. (3)Represents the weighted average units outstanding for the period. (4)Represents the total distributable earnings divided by the weighted average number of units outstanding for the period. (5)Represents the distributions in excess of earnings divided by the weighted average number of units outstanding for the period. (6)Our computation of net income per limited partner unit excludes the effects of 1,290,558 equity-classified phantom unit awards outstanding as they were anti-dilutive for the period presented. (7)In February 2019, pursuant to the terms set forth in our partnership agreement, the fourth and final vesting tranche of 38,750 Class A units vested and were converted into Common units. Refer to Note 17. Partners Capital for more information.
(1)Represents net loss allocated to each class of units based on the actual ownership of the Partnership during the period. There were no amounts attributed to the general partner for its incentive distribution rights. (2)Represents the per unit distribution paid of $0.111 per unit for the three months ended March 31, 2020 and June 30, 2020 and $0.111 per unit distributable for the three months ended September 30, 2020, representing a year-to-date distribution of $0.333 per unit. Amounts presented for each class of units include a proportionate amount of the $304 thousand distributed and $152 thousand distributable to holders of the Equity classified Phantom Units pursuant to the distribution equivalent rights granted under the USD Partners Amended and Restated LP 2014 Long-Term Incentive Plan. (3)Represents the weighted average units outstanding for the period. (4)Represents the total distributable earnings divided by the weighted average number of units outstanding for the period. (5)Represents the distributions in excess of earnings divided by the weighted average number of units outstanding for the period. (6)Our computation of net loss per limited partner unit excludes the effects of 1,366,355 equity-classified phantom unit awards outstanding as they were anti-dilutive for the period presented. (7)In February 2019, pursuant to the terms set forth in our partnership agreement, the fourth and final vesting tranche of 38,750 Class A units vested and were converted into Common units. Additionally, in February 2020, the final tranche of 2,092,709 subordinated units were converted into common units. Refer to Note 17. Partners Capital for more information.
(1)Represents net income allocated to each class of units based on the actual ownership of the Partnership during the period. The net income for each class of limited partner interest has been reduced by its proportionate amount of the approximate $483 thousand attributed to the general partner for its incentive distribution rights. (2)Represents the per unit distributions paid of $0.3625 per unit for the three months ended March 31, 2019, the per unit distribution of $0.365 per unit for the three months ended June 30, 2019, and the per unit distribution of $0.3675 for the three months ended September 30, 2019, representing a year-to-date distribution amount of $1.095 per unit. Amounts presented for each class of units include a proportionate amount of the $1.4 million distributed to holders of the Equity-classified Phantom Units pursuant to the distribution equivalent rights granted under the USD Partners Amended and Restated LP 2014 Long-Term Incentive Plan. (3)Represents the weighted average units outstanding for the period. (4)Represents the total distributable earnings divided by the weighted average number of units outstanding for the period. (5)Represents the distributions in excess of earnings divided by the weighted average number of units outstanding for the period. (6)Our computation of net income per limited partner unit excludes the effects of 1,290,558 equity-classified phantom unit awards outstanding as they were anti-dilutive for the period presented. (7)In February 2019, pursuant to the terms set forth in our partnership agreement, the fourth and final vesting tranche of 38,750 Class A units vested and were converted into Common units. Refer to Note 17. Partners Capital for more information.
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REVENUES (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of disaggregation of revenues | Additionally, the below tables summarize the geographic data for our revenues:
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Schedule of remaining performance obligations | The transaction price allocated to the remaining performance obligations associated with our terminalling and fleet services agreements as of September 30, 2020 are as follows for the periods indicated:
(1)A significant portion of our terminalling services agreements are denominated in Canadian dollars. We have converted the remaining performance obligations associated with these Canadian dollar-denominated contracts using the year-to-date average exchange rate of 0.7392 U.S. dollars per each Canadian dollar at September 30, 2020. (2)Includes fixed monthly minimum commitment fees per contracts and excludes constrained estimates of variable consideration for rate-escalations associated with an index, such as the consumer price index, as well as any incremental revenue associated with volume activity above the minimum volumes set forth within the contracts. Also excludes estimated constrained variable consideration included in certain of our terminalling services agreements that is based on crude oil pricing index differentials. (3)Assumes USD’s Diluent Recovery Unit project goes into service in the second half of 2021, which will result in certain terminalling services agreements of our Hardisty terminal being automatically extended through mid-2031 and certain agreements at our Stroud terminal having a termination right in June 2022.
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Schedule of changes of balance of contract liabilities | We had the following amounts outstanding associated with our contract assets on our consolidated balance sheets in the financial statement line items presented below in the following table for the indicated periods:
The following table presents the amounts outstanding on our consolidated balance sheets and changes associated with the balance of our deferred revenue for the nine months ended September 30, 2020:
(1) Includes deferred revenue associated with customer prepayments from related parties. Refer to Note 12. Transactions with Related Parties for additional discussion of deferred revenues associated with related parties. Excludes deferred revenue from related parties associated with our fleet leases discussed below. (2) Includes cumulative revenue that has been deferred due to tiered billing provisions included in certain of our Canadian dollar-denominated contracts, as discussed above. As such, the change in “Other non-current liabilities” presented has been reduced by approximately $88 thousand due to the impact of the change in the end of period exchange rate between December 31, 2019 and September 30, 2020.
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RESTRICTED CASH (Tables) |
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restrictions on cash and cash equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within our consolidated balance sheets to the amounts shown in our consolidated statements of cash flows for the specified periods:
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Schedule of cash and cash equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within our consolidated balance sheets to the amounts shown in our consolidated statements of cash flows for the specified periods:
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PROPERTY AND EQUIPMENT (Tables) |
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Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of property and equipment | Our property and equipment is comprised of the following asset classifications as of the dates indicated:
(1)The amounts classified as “Construction in progress” are excluded from amounts being depreciated. These amounts represent property that has not been placed into productive service as of the respective consolidated balance sheet date. We had no capitalized interest costs for the three and nine months ended September 30, 2020, and $170 thousand and $439 thousand for the three and nine months ended September 30, 2019, respectively
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LEASES (Tables) |
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Sep. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of lease cost | We have noncancellable operating leases for railcars, buildings, storage tanks, offices, railroad tracks, and land.
Our total lease cost consisted of the following items for the dates indicated:
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Future minimum rental commitments under noncancelable operating leases | The maturity analysis below presents the undiscounted cash payments we expect to make each period for property that we lease from others under noncancellable operating leases as of September 30, 2020 (in thousands):
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Schedule of lease income |
(1)Lease income associated with crude oil storage tanks we lease to customers of our terminals totaling $1.5 million and $1.4 million for the three months ended September 30, 2020 and 2019, and $4.1 million and $4.5 million for the nine months ended September 30, 2020 and 2019, respectively, is included in “Terminalling services” revenues on our consolidated statements of operations.
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Schedule of operating lease income to be received | The maturity analysis below presents the undiscounted future minimum lease payments we expect to receive from customers each period for property they lease from us under noncancellable operating leases as of September 30, 2020 (in thousands):
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GOODWILL AND INTANGIBLE ASSETS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of identifiable intangible assets | The composition, gross carrying amount and accumulated amortization of our identifiable intangible assets are as follows as of the dates indicated:
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DEBT (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of long-term debt | Our long-term debt balances included the following components as of the specified dates:
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Schedule of line of credit facilities | We determined the capacity available to us under the terms of our Credit Agreement was as follows as of the specified dates:
(1) Pursuant to the terms of our Credit Agreement, our borrowing capacity, currently, is limited to 4.5 times our trailing 12-month consolidated EBITDA, which equates to $37.2 million and $28.8 million of borrowing capacity available at September 30, 2020 and December 31, 2019, respectively.
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Schedule of interest expense, net | Interest expense associated with our outstanding indebtedness was as follows for the specified periods:
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NONCONSOLIDATED VARIABLE INTEREST ENTITIES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of variable interest entities | The following table summarizes the total assets and liabilities between us and the VIEs as reflected in our consolidated balance sheets at September 30, 2020 and December 31, 2019, as well as our maximum exposure to losses from entities in which we have a variable interest, but are not the primary beneficiary. Generally, our maximum exposure to losses is limited to amounts receivable for services we provided, reduced by any deferred revenues.
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TRANSACTIONS WITH RELATED PARTIES (Tables) |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of deferred revenue, current portion - related party | Our related party revenues from USD and affiliates are presented below in the following table for the indicated periods:
We had the following amounts outstanding with USD and affiliates on our consolidated balance sheets as presented below in the following table for the indicated periods:
(1)Includes amounts payable to a related party pursuant to the Hardisty Terminal Services Agreement, discussed above, as well as other accounts payable related party amounts associated with our terminalling services business. Does not include amounts payable to related parties associated with the Omnibus Agreement, as discussed above. (2)Includes a contract asset associated with a lease agreement with USDM and cumulative revenue that has been recognized in advance of billing the customer due to tiered billing provisions. Refer to Note 4. Revenue for further discussion. Also includes a contract asset associated with the Hardisty Terminal Services Agreement with USDTC II, as discussed above. (3)Represents deferred revenues associated with our terminalling and fleet services agreements with USD and affiliates for amounts we have collected from them for their prepaid leases and prepaid minimum volume commitment fees.
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Distributions made to general and limited partner, by distribution | We paid the following aggregate cash distributions to USDG as a holder of our common units, and with respect to the February 2020 payment date, the sole owner of our subordinated units and to USD Partners GP LLC as sole holder of our general partner interest and IDRs.
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SEGMENT REPORTING (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of reportable segment data for continuing operations |
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Reconciliation of adjusted EBITDA to loss from continuing operations | The following tables present the computation of Segment Adjusted EBITDA, which is a measure determined in accordance with GAAP, for each of our segments for the periods indicated:
(1) Represents interest income associated with our Terminalling Services segment that is included in “Other income, net” in our consolidated statements of operations. (2) Represents foreign exchange transaction amounts associated with activities between our U.S. and Canadian subsidiaries. (3) Represents the change in non-cash contract assets and liabilities associated with revenue recognized at blended rates based on tiered rate structures in certain of our customer contracts and deferred revenue associated with deficiency credits that are expected to be used in the future prior to their expiration. Amounts presented are net of the corresponding prepaid Gibson pipeline fee that will be recognized as expense concurrently with the recognition of revenue.
(1) Represents interest income associated with our Fleet Services segment that is included in “Other income, net” in our consolidated statements of operations. (2) Represents foreign exchange transaction amounts associated with activities between our U.S. and Canadian subsidiaries.
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DERIVATIVE FINANCIAL INSTRUMENTS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of derivative positions included in the consolidated balance sheets at fair value | We record all of our derivative financial instruments at their fair values in the line items specified below within our consolidated balance sheets, the amounts of which were as follows at the dates indicated:
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Schedule of gain (loss) on derivative instruments | In connection with our derivative activities, we recognized the following amounts during the periods presented:
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Schedule of derivative instruments | The following table presents summarized information about the fair values of our outstanding interest rate contracts for the periods indicated:
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Offsetting assets | The effect of the rights of offset are presented in the tables below as of the dates indicated.
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Offsetting liabilities | The effect of the rights of offset are presented in the tables below as of the dates indicated.
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UNIT BASED COMPENSATION (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of selling general and administrative expense | We recognized compensation expense in “Selling, general and administrative” with regard to our Class A units for the following amounts during the periods presented:
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Schedule of share-based compensation, activity | The following tables present the award activity for our Equity-classified Phantom Units:
The following tables present the award activity for our Liability-classified Phantom Units:
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Schedule of phantom units granted | We made payments to holders of the Phantom Units pursuant to the associated DERs we granted to them under the Award Agreements as follows:
(1) We had no significant reclassifications to unit based compensation expense for DERs paid in relation to Phantom Units that have been forfeited for the three months ended September 30, 2020 and 2019. We reclassified $57 thousand and $8 thousand for the nine months ended September 30, 2020 and 2019, respectively, for forfeitures.
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Class A units | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of class A units outstanding |
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SUPPLEMENTAL CASH FLOW INFORMATION (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of supplemental cash flow disclosures | The following table provides supplemental cash flow information for the periods indicated:
The following table provides supplemental information for the item labeled “Other” in the “Net cash provided by operating activities” section of our consolidated statements of cash flows:
For the nine months ended September 30, 2020 and 2019, we had non-cash investing activities for capital expenditures for property and equipment that were financed through accounts payable and accrued expenses as presented in the table below for the periods indicated:
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REVENUES (Details) |
9 Months Ended | |
---|---|---|
Sep. 30, 2020
USD ($)
segment
|
Dec. 31, 2019
USD ($)
|
|
Disaggregation of Revenue [Line Items] | ||
Number of reportable segments | segment | 2 | |
Contract duration | one year or less | |
Breakage rate (in percentage) | 100.00% | |
Deferred revenue | $ 5,607,000 | $ 6,104,000 |
Estimated breakage bssociated with the make-upright options | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | 0 | 1,100,000 |
Related party | Fleet leases | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | $ 400,000 | $ 400,000 |
REVENUES - Schedule of Geographic Revenues (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
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Third party | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 29,020 | $ 24,031 | $ 76,351 | $ 64,568 |
Related party | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,317 | 5,863 | 12,628 | 19,509 |
U.S. | Third party | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 8,799 | 7,963 | 22,501 | 25,405 |
U.S. | Related party | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,317 | 2,320 | 6,737 | 6,902 |
Canada | Third party | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 20,221 | 16,068 | 53,850 | 39,163 |
Canada | Related party | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 0 | $ 3,543 | $ 5,891 | $ 12,607 |
REVENUES - Schedule of Contract Assets (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Disaggregation of Revenue [Line Items] | ||
Other current assets | $ 1,044 | $ 171 |
Other current asset with related party | ||
Disaggregation of Revenue [Line Items] | ||
Other current assets | $ 0 | $ 264 |
REVENUES - Schedule of Deferred Revenue (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $ 5,607 | $ 6,104 |
Deferred revenue — related party | 410 | 1,482 |
Related party | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue — related party | 0 | 1,072 |
Third party | ||
Deferred Revenue Arrangement [Line Items] | ||
Other non-current liabilities | $ 8,572 | $ 3,391 |
RESTRICTED CASH (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
Sep. 30, 2019 |
Dec. 31, 2018 |
---|---|---|---|---|
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 6,928 | $ 3,083 | $ 6,479 | |
Restricted Cash | 7,605 | 7,601 | 7,644 | |
Total cash, cash equivalents and restricted cash | $ 14,533 | $ 10,684 | $ 14,123 | $ 12,383 |
PROPERTY AND EQUIPMENT - Narrative (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
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Property, Plant and Equipment [Abstract] | ||||
Depreciation and amortization | $ 2,300,000 | $ 2,100,000 | $ 6,600,000 | $ 5,900,000 |
Asset retirement obligation | $ 0 | 0 | ||
Asset Retirement Obligation, Revision of Estimate | $ 200,000 | $ 600,000 |
LEASES - Lease Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
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Leases [Abstract] | ||||
Weighted average discount rate (in percentage) | 5.80% | 5.80% | ||
Weighted average remaining lease term in years | 2 years 1 month 2 days | 2 years 1 month 2 days | ||
Operating lease cost | $ 1,483 | $ 1,483 | $ 4,461 | $ 4,451 |
Short term lease cost | 46 | 48 | 138 | 147 |
Variable lease cost | 1 | 0 | 12 | 0 |
Sublease income | (1,341) | (1,332) | (4,024) | (4,002) |
Total | $ 189 | $ 199 | $ 587 | $ 596 |
LEASES - Future payments (Details) $ in Thousands |
Sep. 30, 2020
USD ($)
|
---|---|
Leases [Abstract] | |
2020 | $ 1,527 |
2021 | 5,714 |
2022 | 4,507 |
2023 | 22 |
Total lease payments | 11,770 |
Less: imputed interest | (714) |
Present value of lease liabilities | $ 11,056 |
LEASES - Lease Income Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
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Lessee, Lease, Description [Line Items] | ||||
Lease income | $ 2,545 | $ 2,363 | $ 7,097 | $ 7,512 |
Weighted average remaining lease term in years | 2 years 21 days | |||
Terminalling services | ||||
Lessee, Lease, Description [Line Items] | ||||
Revenue from contract with a customer excluding assessed tax | 28,905 | 23,709 | $ 75,449 | 63,437 |
Terminalling services | Crude oil storage tanks | ||||
Lessee, Lease, Description [Line Items] | ||||
Revenue from contract with a customer excluding assessed tax | $ 1,500 | $ 1,400 | $ 4,100 | $ 4,500 |
LEASES - Future Lease Income (Details) $ in Thousands |
Sep. 30, 2020
USD ($)
|
---|---|
Leases [Abstract] | |
2020 | $ 2,186 |
2021 | 8,290 |
2022 | 5,354 |
Total | $ 15,830 |
GOODWILL AND INTANGIBLE ASSETS - Intangible Assets (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Carrying amount: | ||
Total carrying amount | $ 126,066 | $ 126,066 |
Accumulated amortization: | ||
Total accumulated amortization | (61,422) | (51,967) |
Total intangible assets, net | 64,644 | 74,099 |
Customer service agreements | ||
Carrying amount: | ||
Total carrying amount | 125,960 | 125,960 |
Accumulated amortization: | ||
Total accumulated amortization | (61,371) | (51,923) |
Other | ||
Carrying amount: | ||
Total carrying amount | 106 | 106 |
Accumulated amortization: | ||
Total accumulated amortization | $ (51) | $ (44) |
DEBT - Narrative (Details) - Credit Facility - Secured Debt |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2020
USD ($)
matuirty_date_extension
|
Dec. 31, 2019
USD ($)
|
|
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 385,000,000.0 | $ 385,000,000.0 |
Term of agreement | 4 years | |
Number of maturity date extensions | matuirty_date_extension | 2 | |
Period of extension of maturity date | 1 year | |
Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 385,000,000 | |
Line of credit facility, accordion feature, higher borrowing capacity option | $ 500,000,000 | |
Average interest rate (in percentage) | 2.91% | 4.24% |
Commitment fee percentage (in percentage) | 0.50% | |
Standby Letters of Credit | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 20,000,000 | |
Swingline Sub-facility | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 20,000,000 |
DEBT - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Debt Instrument [Line Items] | ||
Total long-term debt, net | $ 207,273 | $ 217,651 |
Secured Debt | Credit Facility | ||
Debt Instrument [Line Items] | ||
Less: Deferred financing costs, net | (1,727) | (2,349) |
Revolving Credit Facility | Secured Debt | Credit Facility | ||
Debt Instrument [Line Items] | ||
Revolving Credit Facility | $ 209,000 | $ 220,000 |
DEBT - Schedule of Line of Credit Facilities (Details) - Secured Debt - Credit Facility |
9 Months Ended | |
---|---|---|
Sep. 30, 2020
USD ($)
|
Dec. 31, 2019
USD ($)
|
|
Line of Credit Facility [Line Items] | ||
Aggregate borrowing capacity under Credit Agreement | $ 385,000,000.0 | $ 385,000,000.0 |
Available under the Credit Agreement based on capacity | 176,000,000.0 | 165,000,000.0 |
EBITDA multiple cap | $ 37,200,000 | 28,800,000 |
Borrowing capacity limit multiple of EBITDA | 4.5 | |
Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Aggregate borrowing capacity under Credit Agreement | $ 385,000,000 | |
Less: Revolving Credit Facility amounts outstanding | $ 209,000,000.0 | $ 220,000,000.0 |
DEBT - Schedule of Interest Expense, Net (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Debt Disclosure [Abstract] | ||||
Interest expense on the Credit Agreement | $ 1,837 | $ 2,967 | $ 6,418 | $ 8,748 |
Capitalized interest on construction in progress | 0 | (170) | 0 | (439) |
Amortization of deferred financing costs | 208 | 208 | 622 | 865 |
Total interest expense | $ 2,045 | $ 3,005 | $ 7,040 | $ 9,174 |
COLLABORATIVE ARRANGEMENT (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
|
Disaggregation of Revenue [Line Items] | |||||
Other current liabilities | $ 5,495 | $ 5,495 | $ 3,150 | ||
Facilities Agreement with Gibson | |||||
Disaggregation of Revenue [Line Items] | |||||
Other current liabilities | 3,100 | 3,100 | $ 1,200 | ||
Pipeline fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Operating costs | $ 5,936 | $ 5,411 | $ 17,678 | $ 15,374 |
NONCONSOLIDATED VARIABLE INTEREST ENTITIES (Details) $ in Thousands |
Sep. 30, 2020
USD ($)
railcar
|
Dec. 31, 2019
USD ($)
|
---|---|---|
Variable Interest Entity [Line Items] | ||
Assets | $ 244,283 | $ 289,566 |
Liabilities | 244,560 | 248,510 |
Variable interest entity, not primary beneficiary | ||
Variable Interest Entity [Line Items] | ||
Assets | 10 | 11 |
Liabilities | 10 | 10 |
Maximum exposure to loss | $ 0 | 1 |
Number of railcars with payment and performance obligations | railcar | 1,232 | |
Variable interest entity, not primary beneficiary | Accounts receivable | ||
Variable Interest Entity [Line Items] | ||
Assets | $ 10 | 11 |
Liabilities | 0 | 0 |
Maximum exposure to loss | 0 | 1 |
Variable interest entity, not primary beneficiary | Deferred revenue | ||
Variable Interest Entity [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 10 | 10 |
Maximum exposure to loss | $ 0 | $ 0 |
TRANSACTIONS WITH RELATED PARTIES - Schedule of Cash Distributions (Details) - USD ($) $ in Thousands |
Aug. 14, 2020 |
May 15, 2020 |
Feb. 19, 2020 |
---|---|---|---|
USDG | |||
Related Party Transaction [Line Items] | |||
Amount Paid to USDG | $ 1,283 | $ 1,283 | $ 4,276 |
USD Group LLC | |||
Related Party Transaction [Line Items] | |||
Amount Paid to USD Partners GP LLC | $ 51 | $ 51 | $ 372 |
SEGMENT REPORTING - Narrative (Details) |
9 Months Ended |
---|---|
Sep. 30, 2020
segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2020 |
Mar. 31, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Income Tax Disclosure [Abstract] | |||||
CARES act, current income tax benefit | $ 3 | $ 533 | |||
CARES act, deferred tax expense | $ 46 | ||||
Loss before income taxes | $ 5,930 | $ 2,520 | $ (26,984) | $ 4,988 |
DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) |
1 Months Ended | |
---|---|---|
Nov. 30, 2017 |
Sep. 30, 2020 |
|
Interest Rate Collar | ||
Derivative [Line Items] | ||
Derivative, term of contract | 5 years | |
Notional amount | $ 100,000,000 | |
Derivative, floor interest rate (in percentage) | 1.70% | |
Derivative, cap interest rate (in percentage) | 2.50% | |
Derivative liability | $ 3,500,000 | |
Swap maturing August 2025 | ||
Derivative [Line Items] | ||
Notional amount | $ 150,000,000 | |
Derivative, fixed interest rate | 0.84% |
DERIVATIVE FINANCIAL INSTRUMENTS - Derivative Positions Included in the Consolidated Balance Sheets at Fair Value (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Derivative [Line Items] | ||
Fair Value | $ (4,599) | $ (826) |
Other current liabilities | ||
Derivative [Line Items] | ||
Fair Value | (1,060) | (139) |
Other non-current liabilities | ||
Derivative [Line Items] | ||
Fair Value | $ (3,539) | $ (687) |
DERIVATIVE FINANCIAL INSTRUMENTS - Gain (Loss) on Derivative Instruments (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Loss associated with derivative instruments | $ 1,200 | $ 220 | $ 4,405 | $ 1,966 |
DERIVATIVE FINANCIAL INSTRUMENTS - Summary of Fair Values of Outstanding Foreign Currency Options (Details) - USD ($) |
Sep. 30, 2020 |
Dec. 31, 2019 |
Nov. 30, 2017 |
---|---|---|---|
Derivative [Line Items] | |||
Fair Value | $ (4,599,000) | $ (826,000) | |
Swap maturing August 2025 | |||
Derivative [Line Items] | |||
Notional amount | $ 150,000,000 | ||
Derivative, fixed interest rate | 0.84% | ||
Fair Value | $ (4,599,000) | 0 | |
Ceiling | |||
Derivative [Line Items] | |||
Notional amount | $ 100,000,000 | ||
Interest rate parameters, ceiling (in percentage) | 2.50% | ||
Fair Value | $ 0 | 83,000 | |
Floor | |||
Derivative [Line Items] | |||
Notional amount | $ 100,000,000 | ||
Interest rate parameters, floor (in percentage) | 1.70% | ||
Fair Value | $ 0 | (909,000) | |
Total | |||
Derivative [Line Items] | |||
Notional amount | $ 100,000,000 | ||
Interest rate parameters, ceiling (in percentage) | 2.50% | ||
Interest rate parameters, floor (in percentage) | 1.70% | ||
Fair Value | $ 0 | $ (826,000) |
UNIT BASED COMPENSATION - Class A Units (Details) - Class A Units - shares |
1 Months Ended | 3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|---|
Feb. 28, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||
Beginning balance (in shares) | 0 | 0 | 0 | 38,750 | |
Forfeited (in shares) | 0 | 0 | 0 | 0 | |
Ending balance (in shares) | 0 | 0 | 0 | 0 | |
Limited Partner | |||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||
Beginning balance (in shares) | 0 | 38,750 | |||
Vested (in shares) | (38,750) | 0 | 0 | 0 | (38,750) |
Ending balance (in shares) | 0 | 0 | 0 | 0 |
UNIT BASED COMPENSATION - Selling General And Administrative Expense Related To Unit Based Compensation (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Class A Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Selling, general and administrative | $ 0 | $ 0 | $ 0 | $ 14 |
UNIT BASED COMPENSATION - Phantom Units Pursuant to Associated DERs (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Distribution Equivalent Right | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-classified phantom units | $ 152,000 | $ 471,000 | $ 781,000 | $ 1,358,000 |
Liability-classified Phantom Units | 12,000 | 30,000 | 45,000 | 74,000 |
Total | 164,000 | 501,000 | 826,000 | 1,432,000 |
Share-based compensation, forfeited | $ 0 | $ 0 | ||
Phantom share units (PSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-classified phantom units | 304,000 | 1,400,000 | ||
Share-based compensation, forfeited | $ 57,000 | $ 8,000 |
SUPPLEMENTAL CASH FLOW INFORMATION - Schedule of Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
|
Lessee, Lease, Description [Line Items] | |||||
Cash paid for income taxes | $ 623 | $ 904 | |||
Cash paid for interest | 6,837 | 8,860 | |||
Cash paid for operating leases | 4,607 | 4,526 | |||
Loss associated with disposal of assets | 0 | 50 | |||
Amortization of deferred financing costs | $ 208 | $ 208 | 622 | 865 | |
Other | 622 | 915 | |||
Operating lease right-of-use assets | 10,956 | 10,956 | $ 11,804 | ||
Present value of lease liabilities | 11,056 | 11,056 | |||
Property and equipment financed through accounts payable accrued liabilities | (229) | $ 1,044 | |||
New Or Extended Lease Agreements | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating lease right-of-use assets | 3,100 | 3,100 | |||
Present value of lease liabilities | $ 3,100 | $ 3,100 |
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