(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||
( | |||||
(Address of principal executive offices, including zip code) | (Registrant’s telephone number, including area code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Large Accelerated Filer o | |||||
Non-Accelerated Filer ¨ | |||||
Page | ||||||||
Green Plains Partners LP, Subsidiaries, and Partners: | |||||
Green Plains Operating Company | Green Plains Operating Company LLC | ||||
Green Plains Partners; the partnership | Green Plains Partners LP and its subsidiaries | ||||
NLR | NLR Energy Logistics LLC | ||||
Green Plains Inc. and Subsidiaries: | |||||
Green Plains; the parent or sponsor | Green Plains Inc. and its subsidiaries | ||||
Green Plains Holdings, the general partner | Green Plains Holdings LLC | ||||
Green Plains Trade | Green Plains Trade Group LLC | ||||
Other Defined Terms: | |||||
2021 annual report | The partnership’s annual report on Form 10-K for the year ended December 31, 2021, filed February 18, 2022 | ||||
ARO | Asset retirement obligation | ||||
ASC | Accounting Standards Codification | ||||
Bgy | Billion gallons per year | ||||
BlackRock | Funds and accounts managed by BlackRock | ||||
Conflicts committee | The partnership’s committee responsible for reviewing situations involving certain transactions with affiliates or other potential conflicts of interest | ||||
COVID-19 | Coronavirus Disease 2019 | ||||
D.C. | District of Columbia | ||||
DOE | Department of Energy | ||||
E10 | Gasoline blended with up to 10% ethanol by volume | ||||
E15 | Gasoline blended with up to 15% ethanol by volume | ||||
E85 | Gasoline blended with up to 85% ethanol by volume | ||||
EBITDA | Earnings before interest, taxes, depreciation and amortization | ||||
EIA | U.S. Energy Information Administration | ||||
EPA | U.S. Environmental Protection Agency | ||||
Exchange Act | Securities Exchange Act of 1934, as amended | ||||
FASB | Financial Accounting Standards Board | ||||
FFV | Flexible-fuel vehicle | ||||
GAAP | U.S. Generally Accepted Accounting Principles | ||||
LIBOR | London Interbank Offered Rate | ||||
LTIP | Green Plains Partners LP 2015 Long-Term Incentive Plan | ||||
MSCTM | Maximized Stillage Coproducts produced using process technology developed by Fluid Quip Technologies LLC | ||||
Mmg | Million gallons | ||||
MTBE | Methyl tertiary-butyl ether | ||||
Partnership agreement | First Amended and Restated Agreement of Limited Partnership of Green Plains Partners LP, dated as of July 1, 2015, between Green Plains Holdings LLC and Green Plains Inc. | ||||
RFS | Renewable Fuels Standard | ||||
RIN | Renewable identification number | ||||
RVO | Renewable volume obligation | ||||
SEC | Securities and Exchange Commission | ||||
SRE | Small refinery exemption | ||||
USDA | U.S. Department of Agriculture |
September 30, 2022 | December 31, 2021 | ||||||||||
(unaudited) | |||||||||||
ASSETS | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable | |||||||||||
Accounts receivable from affiliates | |||||||||||
Prepaid expenses and other | |||||||||||
Total current assets | |||||||||||
Property and equipment, net of accumulated depreciation and amortization of $ | |||||||||||
Operating lease right-of-use assets | |||||||||||
Goodwill | |||||||||||
Investment in equity method investee | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND PARTNERS' EQUITY | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | $ | |||||||||
Accounts payable to affiliates | |||||||||||
Accrued and other liabilities | |||||||||||
Asset retirement obligations | |||||||||||
Operating lease current liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Asset retirement obligations | |||||||||||
Operating lease long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 9) | |||||||||||
Partners' equity | |||||||||||
Common unitholders - public ( | |||||||||||
Common unitholders - Green Plains ( | ( | ( | |||||||||
General partner interests | |||||||||||
Total partners' equity | |||||||||||
Total liabilities and partners' equity | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Affiliate | $ | $ | $ | $ | |||||||||||||||||||
Non-affiliate | |||||||||||||||||||||||
Total revenues | |||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Operations and maintenance (excluding depreciation and amortization reflected below) | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Operating income | |||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Income before income taxes and income from equity method investee | |||||||||||||||||||||||
Income tax expense | ( | ( | ( | ( | |||||||||||||||||||
Income from equity method investee | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Net income attributable to partners' ownership interests: | |||||||||||||||||||||||
General partner | $ | $ | $ | $ | |||||||||||||||||||
Limited partners - common unitholders | |||||||||||||||||||||||
Earnings per limited partner unit (basic and diluted): | |||||||||||||||||||||||
Common units | $ | $ | $ | $ | |||||||||||||||||||
Weighted average limited partner units outstanding (basic and diluted): | |||||||||||||||||||||||
Common units |
Nine Months Ended September 30, | |||||||||||
2022 | 2021 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Accretion | ( | ||||||||||
Amortization of debt issuance costs | |||||||||||
Loss on extinguishment of debt | |||||||||||
Unit-based compensation | |||||||||||
Income from equity method investee | ( | ( | |||||||||
Other | ( | ||||||||||
Changes in operating assets and liabilities before effects of asset dispositions: | |||||||||||
Accounts receivable | |||||||||||
Accounts receivable from affiliates | ( | ||||||||||
Prepaid expenses and other assets | ( | ( | |||||||||
Accounts payable and accrued liabilities | ( | ( | |||||||||
Accounts payable to affiliates | ( | ( | |||||||||
Operating lease liabilities and right-of-use assets | |||||||||||
Other | |||||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property and equipment | ( | ( | |||||||||
Disposition of assets | |||||||||||
Net cash provided by (used in) investing activities | ( | ||||||||||
Cash flows from financing activities: | |||||||||||
Payments of distributions | ( | ( | |||||||||
Proceeds from revolving credit facility | |||||||||||
Payments on revolving credit facility | ( | ||||||||||
Proceeds from issuance of long-term debt | |||||||||||
Principal payments on long-term debt | ( | ( | |||||||||
Payments of loan fees | ( | ||||||||||
Other | |||||||||||
Net cash used in financing activities | ( | ( | |||||||||
Net change in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents, beginning of period | |||||||||||
Cash and cash equivalents, end of period | $ | $ | |||||||||
Supplemental disclosures of cash flow: | |||||||||||
Cash paid for income taxes | $ | $ | |||||||||
Cash paid for interest | $ | $ | |||||||||
Non-cash investing activities: | |||||||||||
Assets disposed of in sale | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Service revenues | |||||||||||||||||||||||
Terminal services | $ | $ | $ | $ | |||||||||||||||||||
Trucking and other | |||||||||||||||||||||||
Total service revenues | |||||||||||||||||||||||
Leasing revenues (1) | |||||||||||||||||||||||
Storage and throughput services | |||||||||||||||||||||||
Railcar transportation services | |||||||||||||||||||||||
Terminal services | |||||||||||||||||||||||
Total leasing revenues | |||||||||||||||||||||||
Total revenues | $ | $ | $ | $ |
Amount | |||||
Balance at January 1, 2022 | $ | ||||
Revenue recognized included in beginning balance | ( | ||||
Net additions | |||||
Balance at March 31, 2022 | |||||
Revenue recognized included in beginning balance | ( | ||||
Net additions | |||||
Balance at June 30, 2022 | |||||
Revenue recognized included in beginning balance | ( | ||||
Net additions | |||||
Balance at September 30, 2022 | $ |
Total consideration | $ | ||||
Identifiable assets and liabilities disposed of: | |||||
Property and equipment, net | |||||
Operating lease right-of-use assets | |||||
Operating lease current liabilities | ( | ||||
Operating lease long-term liabilities | ( | ||||
Total identifiable net assets | |||||
Partners' equity effect | $ |
Non-Vested Units | Weighted-Average Grant-Date Fair Value | Weighted-Average Remaining Vesting Term (in years) | |||||||||||||||
Non-vested at December 31, 2021 | $ | ||||||||||||||||
Granted | |||||||||||||||||
Vested | ( | ||||||||||||||||
Non-vested at September 30, 2022 | $ |
Limited Partners | General Partner | Total | |||||||||||||||||||||
Common Units- Public | Common Units- Green Plains | ||||||||||||||||||||||
Balance, December 31, 2021 | $ | $ | ( | $ | $ | ||||||||||||||||||
Quarterly cash distributions to unitholders ($ | ( | ( | ( | ( | |||||||||||||||||||
Net income | |||||||||||||||||||||||
Unit-based compensation, including general partner net contributions | |||||||||||||||||||||||
Balance, March 31, 2022 | $ | $ | ( | $ | $ | ||||||||||||||||||
Quarterly cash distributions to unitholders ($ | ( | ( | ( | ( | |||||||||||||||||||
Net income | |||||||||||||||||||||||
Unit-based compensation, including general partner net contributions | |||||||||||||||||||||||
Balance, June 30, 2022 | $ | $ | ( | $ | $ | ||||||||||||||||||
Quarterly cash distributions to unitholders ($ | ( | ( | ( | ( | |||||||||||||||||||
Net income | |||||||||||||||||||||||
Unit-based compensation, including general partner net contributions | |||||||||||||||||||||||
Balance, September 30, 2022 | $ | $ | ( | $ | $ |
Limited Partners | General Partner | Total | |||||||||||||||||||||
Common Units- Public | Common Units- Green Plains | ||||||||||||||||||||||
Balance, December 31, 2020 | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Quarterly cash distributions to unitholders ($ | ( | ( | ( | ( | |||||||||||||||||||
Net income | |||||||||||||||||||||||
Ord disposition | |||||||||||||||||||||||
Unit-based compensation, including general partner net contributions | |||||||||||||||||||||||
Balance, March 31, 2021 | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Quarterly cash distributions to unitholders ($ | ( | ( | ( | ( | |||||||||||||||||||
Net income | |||||||||||||||||||||||
Unit-based compensation, including general partner net contributions | |||||||||||||||||||||||
Balance, June 30, 2021 | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Quarterly cash distributions to unitholders ($ | ( | ( | ( | ( | |||||||||||||||||||
Net income | |||||||||||||||||||||||
Unit-based compensation, including general partner net contributions | |||||||||||||||||||||||
Balance, September 30, 2021 | $ | $ | ( | $ | $ |
Common Units- Public | Common Units- Green Plains | Total | |||||||||||||||
Units, December 31, 2021 | |||||||||||||||||
Units issued under the LTIP | |||||||||||||||||
Units surrendered for tax purposes | ( | ( | |||||||||||||||
Units, September 30, 2022 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
General partner distributions | $ | $ | $ | $ | |||||||||||||||||||
Limited partner common units - public | |||||||||||||||||||||||
Limited partner common units - Green Plains | |||||||||||||||||||||||
Total distributions to limited partners | |||||||||||||||||||||||
Total distributions declared | $ | $ | $ | $ |
Three Months Ended September 30, 2022 | |||||||||||||||||
Limited Partner Common Units | General Partner | Total | |||||||||||||||
Net income: | |||||||||||||||||
Distributions declared | $ | $ | $ | ||||||||||||||
Earnings less than distributions | ( | ( | ( | ||||||||||||||
Total net income | $ | $ | $ | ||||||||||||||
Weighted-average units outstanding - basic and diluted | |||||||||||||||||
Earnings per limited partner unit - basic and diluted | $ |
Nine Months Ended September 30, 2022 | |||||||||||||||||
Limited Partner Common Units | General Partner | Total | |||||||||||||||
Net income: | |||||||||||||||||
Distributions declared | $ | $ | $ | ||||||||||||||
Earnings less than distributions | ( | ( | ( | ||||||||||||||
Total net income | $ | $ | $ | ||||||||||||||
Weighted-average units outstanding - basic and diluted | |||||||||||||||||
Earnings per limited partner unit - basic and diluted | $ |
Three Months Ended September 30, 2021 | |||||||||||||||||
Limited Partner Common Units | General Partner | Total | |||||||||||||||
Net income: | |||||||||||||||||
Distributions declared | $ | $ | $ | ||||||||||||||
Earnings less than distributions | ( | ( | ( | ||||||||||||||
Total net income | $ | $ | $ | ||||||||||||||
Weighted-average units outstanding - basic and diluted | |||||||||||||||||
Earnings per limited partner unit - basic and diluted | $ |
Nine Months Ended September 30, 2021 | |||||||||||||||||
Limited Partner Common Units | General Partner | Total | |||||||||||||||
Net income: | |||||||||||||||||
Distributions declared | $ | $ | $ | ||||||||||||||
Earnings in excess of distributions | |||||||||||||||||
Total net income | $ | $ | $ | ||||||||||||||
Weighted-average units outstanding - basic and diluted | |||||||||||||||||
Earnings per limited partner unit - basic and diluted | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Lease expense | |||||||||||||||||||||||
Operating lease expense | $ | $ | $ | $ | |||||||||||||||||||
Variable lease expense (benefit) (1) | ( | ||||||||||||||||||||||
Total lease expense | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||||||||
Operating cash flows from operating leases | $ | $ | $ | $ | |||||||||||||||||||
Right-of-use assets obtained in exchange for lease obligations: | |||||||||||||||||||||||
Operating leases | |||||||||||||||||||||||
Right-of-use assets and lease obligations derecognized due to lease modifications: | |||||||||||||||||||||||
Operating leases |
September 30, 2022 | December 31, 2021 | ||||||||||
Weighted average remaining lease term | |||||||||||
Weighted average discount rate | % | % |
Year Ending December 31, | Amount | ||||
2022 | $ | ||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
Thereafter | |||||
Total | |||||
Less: Present value discount | ( | ||||
Operating lease liabilities | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Lease revenue | |||||||||||||||||||||||
Operating lease revenue | $ | $ | $ | $ | |||||||||||||||||||
Variable lease revenue (1) | |||||||||||||||||||||||
Total lease revenue | $ | $ | $ | $ |
Year Ending December 31, | Amount | ||||
2022 | $ | ||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
Thereafter | |||||
Total | $ |
Year Ending December 31, | Amount | ||||
2022 | $ | ||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
Thereafter | |||||
Total | $ |
Year Ending December 31, | Amount | ||||
2022 | $ | ||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
Thereafter | |||||
Total | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Reconciliations to Non-GAAP Financial Measures: | |||||||||||||||||||||||
Net income | $ | 10,166 | $ | 9,425 | $ | 31,035 | $ | 30,450 | |||||||||||||||
Interest expense | 1,516 | 2,781 | 4,139 | 6,120 | |||||||||||||||||||
Income tax expense | 37 | 77 | 114 | 229 | |||||||||||||||||||
Depreciation and amortization | 1,194 | 1,089 | 2,915 | 2,771 | |||||||||||||||||||
Transaction costs | — | — | — | 5 | |||||||||||||||||||
Unit-based compensation expense | 61 | 60 | 180 | 219 | |||||||||||||||||||
Proportional share of EBITDA adjustments of equity method investee (1) | 45 | 45 | 135 | 139 | |||||||||||||||||||
Adjusted EBITDA | 13,019 | 13,477 | 38,518 | 39,933 | |||||||||||||||||||
Interest paid or payable | (1,516) | (1,781) | (4,139) | (5,120) | |||||||||||||||||||
Income taxes paid or payable | (37) | (77) | (114) | (229) | |||||||||||||||||||
Maintenance capital expenditures | (124) | (137) | (382) | (139) | |||||||||||||||||||
Distributable cash flow (2) | $ | 11,342 | $ | 11,482 | $ | 33,883 | $ | 34,445 | |||||||||||||||
Distributions declared (3) | $ | 10,793 | $ | 10,310 | $ | 32,015 | $ | 15,996 | |||||||||||||||
Coverage ratio | 1.05 | x | 1.11 | x | 1.06 | x | 2.15 | x |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2022 | 2021 | % Var. | 2022 | 2021 | % Var. | ||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||
Storage and throughput services | $ | 11,565 | $ | 11,564 | — | % | $ | 34,693 | $ | 35,389 | (2.0) | % | |||||||||||||||||||||||
Railcar transportation services | 5,615 | 4,688 | 19.8 | 15,386 | 14,525 | 5.9 | |||||||||||||||||||||||||||||
Terminal services | 1,864 | 1,998 | (6.7) | 5,984 | 6,258 | (4.4) | |||||||||||||||||||||||||||||
Trucking and other | 1,022 | 1,001 | 2.1 | 2,757 | 3,186 | (13.5) | |||||||||||||||||||||||||||||
Total revenues | 20,066 | 19,251 | 4.2 | 58,820 | 59,358 | (0.9) | |||||||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||||||
Operations and maintenance (excluding depreciation and amortization reflected below) | 6,287 | 5,161 | 21.8 | 18,012 | 17,153 | 5.0 | |||||||||||||||||||||||||||||
General and administrative | 949 | 892 | 6.4 | 3,059 | 3,152 | (3.0) | |||||||||||||||||||||||||||||
Depreciation and amortization | 1,194 | 1,089 | 9.6 | 2,915 | 2,771 | 5.2 | |||||||||||||||||||||||||||||
Total operating expenses | 8,430 | 7,142 | 18.0 | 23,986 | 23,076 | 3.9 | |||||||||||||||||||||||||||||
Operating income | $ | 11,636 | $ | 12,109 | (3.9) | % | $ | 34,834 | $ | 36,282 | (4.0) | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2022 | 2021 | % Var. | 2022 | 2021 | % Var. | ||||||||||||||||||||||||||||||
Product volumes (mmg) | |||||||||||||||||||||||||||||||||||
Storage and throughput services | 219.7 | 182.2 | 20.6% | 649.4 | 553.1 | 17.4% | |||||||||||||||||||||||||||||
Terminal services: | |||||||||||||||||||||||||||||||||||
Affiliate | 24.2 | 22.1 | 9.5 | 79.2 | 62.1 | 27.5 | |||||||||||||||||||||||||||||
Non-affiliate | 23.7 | 26.2 | (9.5) | 68.9 | 77.7 | (11.3) | |||||||||||||||||||||||||||||
47.9 | 48.3 | (0.8) | 148.1 | 139.8 | 5.9 | ||||||||||||||||||||||||||||||
Railcar capacity billed (daily avg.) | 74.7 | 68.6 | 8.9 | 73.0 | 70.3 | 3.8 |
Period | Total Number of Shares Withheld | Average Price per Share | ||||||||||||
July 1 - July 31 | 538 | $ | 12.18 | |||||||||||
August 1 - August 31 | — | — | ||||||||||||
September 1 - September 30 | — | — | ||||||||||||
Total | 538 | $ | 12.18 |
Exhibit No. | Description of Exhibit | ||||
10.1 | |||||
31.1 | |||||
31.2 | |||||
32.1 | |||||
32.2 | |||||
101 | The following information from Green Plains Partners LP Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2022, formatted in Inline Extensible Business Reporting Language (iXBRL): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Cash Flows, and (v) the Notes to Consolidated Financial Statements | ||||
104 | The cover page from Green Plains Partners LP Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2022, formatted in iXBRL. |
GREEN PLAINS PARTNERS LP | ||||||||
(Registrant) | ||||||||
By: | Green Plains Holdings LLC, its general partner | |||||||
Date: November 3, 2022 | By: | /s/ Todd A. Becker | ||||||
Todd A. Becker | ||||||||
President and Chief Executive Officer | ||||||||
(Principal Executive Officer) | ||||||||
Date: November 3, 2022 | By: | /s/ James E. Stark | ||||||
James E. Stark | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial Officer) |
Date: November 3, 2022 | /s/ Todd A. Becker | |||||||||||||
Todd A. Becker | ||||||||||||||
President and Chief Executive Officer | ||||||||||||||
(Principal Executive Officer) |
Date: November 3, 2022 | /s/ James E. Stark | |||||||||||||
James E. Stark | ||||||||||||||
Chief Financial Officer | ||||||||||||||
(Principal Financial Officer) |
Date: November 3, 2022 | /s/ Todd A. Becker | |||||||||||||
Todd A. Becker | ||||||||||||||
President and Chief Executive Officer |
Date: November 3, 2022 | /s/ James E. Stark | |||||||||||||
James E. Stark | ||||||||||||||
Chief Financial Officer |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Property and equipment, accumulated depreciation and amortization | $ 35,145 | $ 35,215 |
Common Units- Public | ||
Units issued (in shares) | 11,660,274 | 11,660,274 |
Units outstanding (in shares) | 11,641,105 | 11,641,105 |
Common Units- Green Plains | ||
Units issued (in shares) | 11,586,548 | 11,586,548 |
Units outstanding (in shares) | 11,586,548 | 11,586,548 |
Basis of Presentation, Description of Business and Summary of Significant Accounting Policies |
9 Months Ended |
---|---|
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation, Description of Business and Summary of Significant Accounting Policies | BASIS OF PRESENTATION, DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization References to “we,” “our,” “us” or “the partnership” in the consolidated financial statements and notes to the consolidated financial statements refer to Green Plains Partners LP and its subsidiaries. Green Plains Holdings LLC, a wholly owned subsidiary of Green Plains Inc., serves as the general partner of the partnership. References to (i) “the general partner” and “Green Plains Holdings” refer to Green Plains Holdings LLC; (ii) “the parent,” “the sponsor” and “Green Plains” refer to Green Plains Inc.; and (iii) “Green Plains Trade” refers to Green Plains Trade Group LLC, a wholly owned subsidiary of Green Plains. Consolidated Financial Statements The consolidated financial statements include the accounts of the partnership and its controlled subsidiaries. All significant intercompany balances and transactions are eliminated on a consolidated basis for reporting purposes. Results for the interim periods presented are not necessarily indicative of the expected results for the entire year. The accompanying unaudited consolidated financial statements are prepared in accordance with GAAP for interim financial information and instructions to Form 10-Q and Article 10 of Regulation S-X. Because they do not include all of the information and footnotes required by GAAP, the consolidated financial statements should be read in conjunction with the partnership’s 2021 annual report on Form 10-K for the year ended December 31, 2021, as filed with the SEC on February 18, 2022. The partnership accounts for its interest in joint ventures using the equity method of accounting, with its investment recorded at the acquisition cost plus the partnership’s share of equity in undistributed earnings and reduced by the partnership’s share of equity in undistributed losses and distributions received. Use of Estimates in the Preparation of Consolidated Financial Statements Preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and revenues and expenses during the reporting period. The partnership bases its estimates on historical experience and assumptions it believes are proper and reasonable under the circumstances. The partnership regularly evaluates the appropriateness of these estimates and assumptions. Actual results could differ from those estimates. Key accounting policies, including, but not limited to, those related to leases, depreciation of property and equipment, asset retirement obligations, and impairment of long-lived assets and goodwill are impacted by judgments, assumptions and estimates used to prepare the consolidated financial statements. Description of Business The partnership provides fuel storage and transportation services by owning, operating, developing and acquiring ethanol and fuel storage terminals, transportation assets and other related assets and businesses. The partnership is its parent’s primary downstream logistics provider to support the parent’s approximately 1.0 bgy ethanol marketing and distribution business since the partnership’s assets are the principal method of storing and delivering the ethanol the parent produces. The ethanol produced by the parent is fuel grade, made principally from starch extracted from corn, and is primarily used for blending with gasoline. Ethanol currently comprises approximately 10% of the U.S. gasoline market and is an economical source of octane and oxygenates for blending into the fuel supply. The partnership does not take ownership of, or receive any payments based on the value of the ethanol or other fuels it handles; as a result, the partnership does not have any direct exposure to fluctuations in commodity prices. Revenue Recognition The partnership recognizes revenue when obligations under the terms of a contract with a customer are satisfied. Generally, this occurs with the completion of services or the transfer of control of products to the customer or another specified third party. For contracts with customers in which a take-or-pay commitment exists, any minimum volume deficiency charges are recognized as revenue in the period incurred and are not allowed to be credited towards excess volumes in future periods. The partnership generates a substantial portion of its revenues under fee-based commercial agreements with Green Plains Trade. Operating lease revenue related to minimum volume commitments is recognized on a straight-line basis over the term of the lease. Under the terms of the storage and throughput agreement with Green Plains Trade, to the extent shortfalls associated with minimum volume commitments in the previous four quarters continue to exist, volumes in excess of the minimum volume commitment are applied to those shortfalls. Remaining excess volumes generating operating lease revenue are recognized as incurred. Please refer to Note 2 - Revenue to the consolidated financial statements for further details. Operations and Maintenance Expenses The partnership’s operations and maintenance expenses consist primarily of lease expenses related to the transportation assets, labor expenses, outside contractor expenses, insurance premiums, repairs and maintenance expenses, and utility costs. These expenses also include fees for certain management, maintenance and operational services to support the storage and terminal facilities, trucks, and leased railcar fleet allocated by Green Plains under the operational services and secondment agreement. Concentrations of Credit Risk In the normal course of business, the partnership is exposed to credit risk resulting from the possibility a loss may occur due to failure of another party to perform according to the terms of their contract. The partnership provides fuel storage and transportation services for various parties with a significant portion of its revenues earned from Green Plains Trade. The partnership continually monitors its credit risk exposure and concentrations. Please refer to Note 2 – Revenue and Note 10 – Related Party Transactions to the consolidated financial statements for additional information. Impairment of Long-Lived Assets and Goodwill The partnership reviews its long-lived assets, currently consisting primarily of property and equipment and operating lease right-of-use assets, for impairment when events or changes in circumstances indicate that the carrying amount of a long-lived asset may not be recoverable. Recoverability of assets to be held and used is measured by comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. No impairment charges were recorded for the periods reported. The partnership’s goodwill currently is comprised of amounts recognized by the MLP predecessor related to terminal services assets. The partnership reviews goodwill at the reporting unit level for impairment at least annually, as of October 1, or more frequently when events or changes in circumstances indicate that impairment may have occurred. Leases The partnership leases certain facilities, parcels of land, and railcars. These leases are accounted for as operating leases, with lease expense recognized on a straight-line basis over the lease term. The term of the lease may include options to extend or terminate the lease when it is reasonably certain that such options will be exercised. For leases with initial terms greater than 12 months, the partnership records operating lease right-of-use assets and corresponding operating lease liabilities. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. The partnership had $0.1 million short-term lease expense for the three and nine months ended September 30, 2022 and no short term lease expense for the three and nine months ended September 30, 2021. Operating lease right-of-use assets represent the right to control an underlying asset for the lease term and operating lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the partnership’s leases do not provide an implicit rate, the incremental borrowing rate is used based on information available at the commencement date to determine the present value of future payments. The partnership utilizes a portfolio approach for lease classification, which allows for an entity to group together leases with similar characteristics, provided that its application does not create a material difference when compared to accounting for the leases at a contract level. For the partnership’s railcar leases, the partnership combines the railcars within each contract rider and accounts for each contract rider as an individual lease. From a lessee perspective, the partnership combines both the lease and non-lease components and accounts for them as one lease component. Certain of the partnership’s railcar agreements provide for maintenance costs to be the responsibility of the partnership as incurred or charged by the lessor. This maintenance cost is a non-lease component that the partnership combines with the monthly rental payment and accounts for the total cost as operating lease expense. In addition, the partnership has a land lease that contains a non-lease component for the handling and unloading services the landlord provides. The partnership combines the cost of services with the land lease cost and accounts for the total as operating lease expense. The partnership records operating lease revenue as part of its operating lease agreements for storage and throughput services, rail transportation services, and certain terminal services. In addition, the partnership may sublease certain of its railcars to third parties on a short-term basis. These subleases are classified as operating leases, with the associated sublease revenue recognized on a straight-line basis over the sublease lease term. From a lessor perspective, the partnership classifies certain costs as lease costs for accounting purposes, which may differ from a tax or legal perspective. The partnership combines both the lease and non-lease components and accounts for them as one lease component. The storage and throughput agreement consists of costs paid by Green Plains Trade for the rental of the terminal facilities, which for accounting purposes are treated as lease costs, as well as other costs for the throughput services provided by the partnership, which are treated as non-lease costs. For this agreement, the partnership combines the facility rental revenue and the service revenue and accounts for the total as leasing revenue. Similarly, the railcar transportation services agreement consists of costs paid by Green Plains Trade for the use of the partnership’s railcar assets, which are treated as lease costs for accounting purposes, as well as costs for logistical operations management and other services, which are treated as non-lease costs. For this agreement, the partnership combines the railcar rental revenue and the service revenue and accounts for the total as leasing revenue. Please refer to Note 9 – Commitments and Contingencies to the consolidated financial statements for further details on operating lease expense and revenue. Please refer to Note 2 - Revenue to the consolidated financial statements for further details on the operating lease agreements in which the partnership is a lessor. Asset Retirement Obligations The partnership records an ARO for the fair value of the estimated costs to retire a tangible long-lived asset in the period incurred if it can be reasonably estimated, which is subsequently adjusted for accretion expense. Corresponding asset retirement costs are capitalized as a long-lived asset and depreciated on a straight-line basis over the asset’s remaining useful life. The expected present value technique used to calculate the fair value of the AROs includes assumptions about costs, settlement dates, interest accretion, and inflation. Changes in assumptions, such as the amount or timing of estimated cash flows, could increase or decrease the AROs. The partnership’s AROs are based on legal obligations to perform remedial activity related to land, machinery and equipment when certain operating leases expire. Segment Reporting The partnership accounts for segment reporting in accordance with ASC 280, Segment Reporting, which establishes standards for entities reporting information about the operating segments and geographic areas in which they operate. Management evaluated how its chief operating decision maker has organized the partnership for purposes of making operating decisions and assessing performance, and concluded it has one reportable segment. Recent Accounting Pronouncements In March 2020, the FASB issued amended guidance in ASC 848, Reference Rate Reform, and subsequent updates in January 2021 and October 2022, which provide optional expedients and exceptions to U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burden related to the expected market transition from LIBOR and other interbank offered rates to alternative reference rates. The expedients and exceptions provided by the amended guidance do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2024, except for hedging relationships existing as of December 31, 2024, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The guidance is effective upon issuance and to be applied prospectively from any date beginning March 12, 2020, through December 31, 2024. The partnership does not have any hedges and the amended guidance is not expected to have a material impact on the partnership’s consolidated financial statements.
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Revenue |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | REVENUE Revenue Recognition The partnership recognizes revenue when obligations under the terms of a contract with a customer are satisfied. Generally, this occurs with the completion of services or the transfer of control of products to the customer or another specified third party. Revenue is measured as the amount of consideration expected to be received in exchange for providing services. Revenue by Source The following table disaggregates our revenue by major source (in thousands):
(1) Leasing revenues do not represent revenues recognized from contracts with customers under ASC 606, Revenue from Contracts with Customers, and are accounted for under ASC 842, Leases. Terminal Services Revenue The partnership provides terminal services and logistics solutions to Green Plains Trade, and other customers, through its fuel terminal facilities under various terminal service agreements, some of which have minimum volume commitments. Revenue generated by these terminals is disaggregated between service revenue and leasing revenue. If Green Plains Trade, or other customers, fail to meet their minimum volume commitments during the applicable term, a deficiency payment equal to the deficient volume multiplied by the applicable fee is charged. Deficiency payments related to the partnership’s terminal services revenue may not be utilized as credits toward future volumes. At terminals where customers have shared use of terminal and tank storage assets, revenue is generated from contracts with customers and accounted for as service revenue. This service revenue is recognized at the point in time when product is withdrawn from tank storage. At terminals where a customer is predominantly provided exclusive use of the terminal or tank storage assets, the partnership is considered a lessor as part of an operating lease agreement. Revenue is recognized over the term of the lease based on the minimum volume commitment or total actual throughput if in excess of the minimum volume commitment. Trucking and Other Revenue The partnership transports ethanol, natural gasoline, other refined fuels and feedstocks by truck from identified receipt points to various delivery points. Trucking revenue is recognized over time based on the percentage of total miles traveled, which is on average less than 100 miles. Railcar Transportation Services Revenue Under the rail transportation services agreement, Green Plains Trade is obligated to use the partnership to transport ethanol and other fuels from receipt points identified by Green Plains Trade to nominated delivery points. Green Plains Trade is required to pay the partnership fees for the minimum railcar volumetric capacity provided, regardless of utilization of that capacity. However, Green Plains Trade is not charged for railcar volumetric capacity that is not available for use due to inspections, upgrades or routine repairs and maintenance. Revenue associated with the rail transportation services fee is considered leasing revenue and is recognized over the term of the lease based on the actual average daily railcar volumetric capacity provided. The partnership may also charge Green Plains Trade a related services fee for logistical operations management of railcar volumetric capacity utilized by Green Plains Trade which is not provided by the partnership. Revenue associated with the related services fee is also considered leasing revenue and recognized over the term of the lease based on the average volumetric capacity for which services are provided. Storage and Throughput Revenue The partnership generates leasing revenue from its storage and throughput agreement with Green Plains Trade based on contractual rates charged for the handling, storage and throughput of ethanol. Under this agreement, Green Plains Trade is required to pay the partnership a fee for a minimum volume commitment regardless of the actual volume delivered. If Green Plains Trade fails to meet its minimum volume commitment during any quarter, the partnership charges Green Plains Trade a deficiency payment equal to the deficient volume multiplied by the applicable fee. The deficiency payment may be applied as a credit toward volumes delivered by Green Plains Trade in excess of the minimum volume commitment during the following four quarters, after which time any unused credits will expire. Revenue is recognized over the term of the lease based on the minimum volume commitment or total actual throughput if in excess of the minimum volume commitment. Payment Terms The partnership has standard payment terms, which vary depending on the nature of the services provided, with the majority of terms falling within 10 to 30 days after transfer of control or completion of services. Contracts generally do not include a significant financing component in instances where the timing of revenue recognition differs from the timing of invoicing. Major Customers Revenue from Green Plains Trade Group was $19.0 million and $55.9 million for the three and nine months ended September 30, 2022, respectively, and $18.3 million and $56.1 million for the three and nine months ended September 30, 2021, respectively, which exceeds 10% of the partnership’s total revenue. Contract Liabilities The partnership records unearned revenue when consideration is received, or such consideration is unconditionally due, from a customer prior to transferring goods or services to the customer under the terms of service and lease agreements. Unearned revenue from service agreements, which represents a contract liability, is recorded for fees that have been charged to the customer prior to the completion of performance obligations, and is generally recognized in the subsequent quarter. The following table reflects the changes in our unearned revenue from service agreements, which is recorded in accrued and other liabilities on the consolidated balance sheets, for the three and nine months ended September 30, 2022 (in thousands):
The partnership expects to recognize all of the unearned revenue associated with service agreements from contracts with customers as of September 30, 2022, in the subsequent quarter when the product is withdrawn from tank storage.
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Debt |
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Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Term Loan Facility Green Plains Operating Company has a term loan to fund working capital, capital expenditures and other general partnership purposes. On July 20, 2021, the credit facility was amended, decreasing the total amount available to $60.0 million, extending the maturity from December 31, 2021 to July 20, 2026, and converting the credit facility to a term loan. Under the terms of the amended agreement, BlackRock purchased the outstanding balance of the prior credit facility from the previous lenders. On February 11, 2022, the Amended Credit Facility was modified to allow Green Plains Partners and its affiliates to repurchase outstanding notes and in conjunction, the partnership repurchased $1.0 million of the outstanding notes and subsequently retired the notes. Interest on the term loan is based on three-month LIBOR plus 8.00%, with a 0% LIBOR floor. Interest is payable on the 15th day of each March, June, September and December during the term, which commenced September 15, 2021. The amended term loan does not require any principal payments; however, the partnership has the option to prepay $1.5 million per quarter beginning twelve months after the closing date. During the nine months ended September 30, 2021, the partnership made $50.0 million in principal payments on the term loan, including $19.5 million of scheduled repayments, $27.5 million related to the sale of the storage assets located adjacent to the Ord, Nebraska ethanol plant, and a $3.0 million prepayment made with excess cash. As of September 30, 2022, the term loan had an outstanding balance of $59.0 million and an interest rate of 11.19%. The partnership’s obligations under the term loan are secured by a first priority lien on (i) the equity interests of the partnership’s present and future subsidiaries, (ii) all of the partnership’s present and future personal property, such as investment property, general intangibles and contract rights, including rights under any agreements with Green Plains Trade, (iii) all proceeds and products of the equity interests of the partnership’s present and future subsidiaries and its personal property and (iv) substantially all of the partnership’s real property and material leases of real property. The terms impose affirmative and negative covenants, including restrictions on the partnership’s ability to incur additional debt, acquire and sell assets, create liens, invest capital, pay distributions and materially amend the partnership’s commercial agreements with Green Plains Trade. The term loan also requires the partnership to maintain a maximum consolidated leverage ratio and a minimum consolidated debt service coverage ratio, each of which is calculated on a pro forma basis with respect to acquisitions and divestitures occurring during the applicable period. As of the end of any fiscal quarter, the maximum consolidated leverage ratio required is no more than 2.50x and the minimum debt service coverage ratio required is no less 1.10x. The consolidated leverage ratio is calculated by dividing total funded indebtedness by the sum of the four preceding fiscal quarters’ consolidated EBITDA. The consolidated debt service coverage ratio is calculated by taking the sum of the four preceding fiscal quarters’ consolidated EBITDA minus income taxes and consolidated capital expenditures for such period divided by the sum of the four preceding fiscal quarters’ consolidated interest charges plus consolidated scheduled funded debt payments for such period. Under the amended terms of the loan, the partnership has no restrictions on the amount of quarterly distribution payments, so long as (i) no default has occurred and is continuing, or would result from payment of the distribution, and (ii) the partnership and its subsidiaries are in compliance with its financial covenants and remain in compliance after payment of the distribution. The partnership had $59.0 million and $60.0 million of borrowings outstanding as of September 30, 2022, and December 31, 2021, respectively. In addition, the partnership had $0.5 million of unamortized debt issuance costs recorded as a direct reduction of the carrying value of the partnership’s long-term debt as of September 30, 2022 and December 31, 2021. The partnership believes the carrying amount of its debt approximated fair value at both September 30, 2022 and December 31, 2021. Covenant Compliance The partnership, including all of its subsidiaries, was in compliance with its debt covenants as of September 30, 2022.
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Dispositions |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dispositions | DISPOSITIONS Ord Disposition On March 22, 2021, Green Plains completed the sale of its ethanol plant located in Ord, Nebraska to GreenAmerica Biofuels Ord LLC. Correspondingly, the partnership’s storage assets located adjacent to the Ord plant were sold to Green Plains for $27.5 million, along with the transfer of associated railcar operating leases. This transaction was accounted for as a transfer between entities under common control and was approved by the conflicts committee. There were no material transaction costs recorded for the disposition. The following is a summary of assets and liabilities disposed of or assumed (in thousands):
In conjunction with the disposition, the partnership amended the 1) operational services agreement, 2) ethanol storage and throughput agreement, and 3) rail transportation services agreement. Please refer to Note 10 – Related Party Transactions to the consolidated financial statements for additional information.
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Unit-Based Compensation |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unit-Based Compensation | UNIT-BASED COMPENSATIONThe partnership has a long-term incentive plan (LTIP) intended to promote the interests of the partnership, its general partner and affiliates by providing unit-based incentive compensation awards to employees, consultants and directors to encourage superior performance. The LTIP reserves 2,500,000 common limited partner units for issuance in the form of options, restricted units, phantom units, distribution equivalent rights, substitute awards, unit appreciation rights, unit awards, profit interest units or other unit-based awards. The partnership measures unit-based compensation at fair value on the grant date, with no adjustments for estimated forfeitures. The partnership records noncash compensation expense related to the awards over the requisite service period on a straight-line basis. The non-vested unit-based award activity for the nine months ended September 30, 2022, is as follows:
Compensation costs related to the unit-based awards of $61 thousand and $180 thousand were recognized during the three and nine months ended September 30, 2022, respectively. Compensation costs related to the unit-based awards of $60 thousand and $219 thousand were recognized during the three and nine months ended September 30, 2021, respectively. As of September 30, 2022, there was $180 thousand of unrecognized compensation costs from unit-based compensation awards.
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Partners' Equity |
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Partners' Equity | PARTNERS’ EQUITY Changes in partners’ equity are as follows (in thousands):
A roll forward of the number of common limited partner units outstanding is as follows:
Issuance of Additional Securities The partnership agreement authorizes the partnership to issue unlimited additional partnership interests on the terms and conditions determined by the general partner without unitholder approval. Cash Distribution Policy Quarterly distributions are made from available cash within 45 days after the end of each calendar quarter, assuming the partnership has available cash. Available cash generally means all cash and cash equivalents on hand at the end of that quarter less cash reserves established by the general partner, including those for future capital expenditures, future acquisitions and anticipated future debt service requirements, plus all or any portion of the cash on hand resulting from working capital borrowings made subsequent to the end of that quarter. The general partner also holds incentive distribution rights that entitle it to receive increasing percentages, up to 48%, of available cash distributed from operating surplus, as defined in the partnership agreement, in excess of $0.46 per unit per quarter. The maximum distribution of 48% does not include any distributions the general partner or its affiliates may receive on its general partner interest or common units. On February 11, 2022, the partnership distributed $10.4 million to unitholders of record as of February 4, 2022, related to the quarterly cash distribution of $0.44 per unit that was declared on January 20, 2022, for the quarter ended December 31, 2021. On May 13, 2022, the partnership distributed $10.5 million to unitholders of record as of May 6, 2022, related to the quarterly cash distribution of $0.445 per unit that was declared on April 21, 2022, for the quarter ended March 31, 2022. On August 12, 2022, the partnership distributed $10.7 million to unitholders of record as of August 5, 2022, related to the quarterly cash distribution of $0.45 per unit that was declared on July 21, 2022, for the quarter ended June 30, 2022. On October 20, 2022, the board of directors of the general partner declared a quarterly cash distribution of $0.455 per unit, or approximately $10.8 million, for the quarter ended September 30, 2022. The distribution is payable on November 14, 2022, to unitholders of record at the close of business on November 4, 2022. The total cash distributions declared for the three and nine months ended September 30, 2022 and 2021, are as follows (in thousands):
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Earnings Per Unit |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Unit | EARNINGS PER UNIT The partnership computes earnings per unit using the two-class method. Earnings per unit applicable to common units is calculated by dividing the respective limited partners’ interest in net income by the weighted average number of common units outstanding during the period, adjusted for the dilutive effect of any outstanding dilutive securities. Diluted earnings per limited partner unit was the same as basic earnings per limited partner unit as there were no potentially dilutive common units outstanding as of September 30, 2022. The following tables show the calculation of earnings per limited partner unit – basic and diluted (in thousands, except for per unit data):
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Income Taxes |
9 Months Ended |
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Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The partnership is a limited partnership, which is not subject to federal income taxes. However, the partnership is subject to state income taxes in certain states. As a result, the financial statements reflect a provision or benefit for such income taxes. The general partner and the unitholders are responsible for paying federal and state income taxes on their share of the partnership’s taxable income. The partnership’s income tax balances did not have a material impact on the financial statements. The partnership recognizes uncertainties in income taxes based upon the technical merits of the position, and measures the maximum benefit and degree of likelihood to determine the tax liability in the financial statements. The partnership does not have any material uncertain tax positions as of September 30, 2022.
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Operating Lease Expense The partnership leases certain facilities, parcels of land, and railcars with remaining terms ranging from less than one year to approximately 9.1 years, including renewal options reasonably certain to be exercised for the land and facility leases. Railcar agreement renewals are not considered reasonably certain to be exercised as they typically renew with different underlying terms. The components of lease expense for the three and nine months ended September 30, 2022 and 2021, are as follows (in thousands):
(1) Represents railcar lease abatements provided by the lessor when railcars are out of service during periods of maintenance or upgrade, offset by amounts incurred in excess of the minimum payments required for the handling and unloading of railcars for a certain lease. Supplemental cash flow information related to operating leases is as follows (in thousands):
Supplemental balance sheet information related to operating leases is as follows:
Aggregate minimum lease payments under the operating lease agreements for the remainder of 2022 and in future years are as follows (in thousands):
The partnership has additional railcar operating leases that will commence within the next twelve months, with undiscounted future lease payments of approximately $4.4 million and lease terms of five years. This amount is not included in the tables above. Lease Revenue The components of lease revenue for the three and nine months ended September 30, 2022 and 2021, are as follows (in thousands):
(1) Represents amounts charged to Green Plains Trade under the storage and throughput agreement in excess of the initial rate of $0.05 per gallon, amounts delivered by Green Plains Trade and other customers in excess of various minimum volume commitments, and the difference between the contracted railcar volumetric capacity and the actual amount provided to Green Plains Trade during the period. In accordance with the amended storage and throughput agreement, Green Plains Trade is obligated to deliver a minimum volume of 217.7 mmg per calendar quarter to the partnership’s storage facilities and pay $0.05312 per gallon on all volume it throughputs associated with the agreement. The minimum volume commitment decreased from 232.5 mmg per calendar quarter to 217.7 mmg per calendar quarter as of March 22, 2021, in conjunction with the Ord disposition. The remaining lease term for the storage and throughput agreement is 6.8 years with automatic one year renewal periods in which either party has the right to terminate the contract. Due to the unilateral right to termination during the renewal period, the lease contract would no longer contain enforceable rights or obligations. Therefore, the lease term does not include the successive one year renewal periods. Anticipated minimum operating lease revenue under this agreement assuming a consistent rate of $0.05312 per gallon for the remainder of 2022 and in future years, is as follows (in thousands):
In accordance with the amended rail transportation services agreement with Green Plains Trade, Green Plains Trade is required to pay the rail transportation services fee for railcar volumetric capacity provided by the partnership. The remaining lease term for this agreement is 6.8 years, with automatic one year renewal periods in which either party has the right to terminate the contract. Due to the unilateral right to termination during the renewal period, the lease contract would no longer contain enforceable rights or obligations. Therefore, the lease term does not include the successive one year renewal periods. Under the terms of the agreement, Green Plains Trade is not required to pay for volumetric capacity that is not available due to inspections, upgrades, or routine repairs and maintenance. As a result, the actual volumetric capacity billed may be reduced based on the amount of volumetric capacity available for use during any applicable period. Anticipated minimum operating lease revenue under this agreement for the remainder of 2022 and in future years is as follows (in thousands):
Other Commitments and Contingencies The partnership has agreements for contracted services with certain vendors that require the partnership to pay minimum monthly amounts, which expire on various dates. These agreements do not contain an identified asset and therefore are not considered operating leases. The partnership satisfied the minimum commitments under these agreements during the three and nine months ended September 30, 2022 and 2021. Aggregate minimum payments under these agreements for the remainder of 2022 and in future years are as follows (in thousands):
Legal The partnership may be involved in litigation that arises during the ordinary course of business. Currently, the partnership is not a party to any material litigation.
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Related Party Transactions |
9 Months Ended |
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Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS The partnership engages in various related party transactions with Green Plains and subsidiaries of Green Plains. Green Plains provides a variety of shared services to the partnership, including general management, accounting and finance, payroll and human resources, information technology, legal, communications and treasury activities. These costs are proportionally allocated by Green Plains to its subsidiaries based on common financial metrics management believes are reasonable. The partnership recorded expenses related to these shared services of $0.8 million and $2.5 million for the three and nine months ended September 30, 2022, respectively, and $0.8 million and $2.4 million for the three and nine months ended September 30, 2021, respectively. In addition, the partnership reimburses Green Plains for wages and benefit costs of employees directly performing services on its behalf. Green Plains may also pay certain direct costs on behalf of the partnership, which are reimbursed by the partnership. The partnership believes the consolidated financial statements reflect all material costs of doing business related to its operations, including expenses incurred by other entities on its behalf. Omnibus Agreement The partnership has entered into an omnibus agreement, as amended, with Green Plains and its affiliates which, among other terms and conditions, addresses the partnership’s obligation to reimburse Green Plains for direct or allocated costs and expenses incurred by Green Plains for general and administrative services; the prohibition of Green Plains and its subsidiaries from owning, operating or investing in any business that owns or operates fuel terminals or fuel transportation assets; the partnership’s right of first offer to acquire assets if Green Plains decides to sell them; a nontransferable, nonexclusive, royalty-free license to use the Green Plains trademark and name; the allocation of taxes among the parent, the partnership and its affiliates and the parent’s preparation and filing of tax returns; and an indemnity by Green Plains for certain environmental and other liabilities. If Green Plains or its affiliates cease to control the general partner, then either Green Plains or the partnership may terminate the omnibus agreement, provided that (i) the indemnification obligations of the parties survive according to their respective terms; and (ii) Green Plains’ obligation to reimburse the partnership for operational failures survives according to its terms. Operating Services and Secondment Agreement The general partner has entered into an operational services and secondment agreement, as amended, with Green Plains. Under the terms of the agreement, Green Plains seconds employees to the general partner to provide management, maintenance and operational functions for the partnership, including regulatory matters, health, environment, safety and security programs, operational services, emergency response, employee training, finance and administration, human resources, business operations and planning. The seconded personnel are under the direct management and supervision of the general partner who reimburses the parent for the cost of the seconded employees, including wages and benefits. If a seconded employee does not devote 100% of his or her time providing services to the general partner, the general partner reimburses the parent for a prorated portion of the employee’s overall wages and benefits based on the percentage of time the employee spent working for the general partner. Under the operational services and secondment agreement, Green Plains will indemnify the partnership from any claims, losses or liabilities incurred by the partnership, including third-party claims, arising from their performance of the operational services secondment agreement; provided, however, that Green Plains will not be obligated to indemnify the partnership for any claims, losses or liabilities arising out of the partnership’s gross negligence, willful misconduct or bad faith with respect to any services provided under the operational services and secondment agreement. Commercial Agreements The partnership has various fee-based commercial agreements with Green Plains Trade, including: •Storage and throughput agreement, expiring on June 30, 2029; •Rail transportation services agreement, expiring on June 30, 2029; •Trucking transportation agreement, expiring on May 31, 2023; •Terminal services agreement for the Birmingham, Alabama unit train terminal, expiring on December 31, 2023; and •Terminal services agreement for the Collins, Mississippi terminal, expiring on December 31, 2023. The storage and throughput, rail transportation services, and trucking transportation agreements have various automatic renewal terms if not cancelled by either party within specified timeframes. Refer to Item 15 - Exhibits, Financial Statement Schedules in our 2021 annual report for further details. The storage and throughput agreement and terminal services agreements are supported by minimum volume commitments. The rail transportation services agreement is supported by minimum take-or-pay volumetric capacity commitments. Under the storage and throughput agreement, as amended, Green Plains Trade is obligated to deliver a minimum volume of 217.7 mmg of product per calendar quarter to the partnership’s storage facilities and pay $0.05312 per gallon on all volume it throughputs associated with the agreement. The minimum volume commitment decreased from 232.5 mmg per calendar quarter to 217.7 mmg per calendar quarter as of March 22, 2021, in conjunction with the Ord disposition. In addition, the storage and throughput agreement with Green Plains Trade was extended an additional year to June 30, 2029 as part of this transaction. If Green Plains Trade fails to meet its minimum volume commitment during any quarter, Green Plains Trade will pay the partnership a deficiency payment equal to the deficient volume multiplied by the applicable fee. The deficiency payment may be applied as a credit toward payments due on future volumes delivered by Green Plains Trade in excess of the minimum volume commitment during the following four quarters, after which time this option will expire. For the three months ended September 30, 2022, Green Plains Trade exceeded the minimum volume commitment and utilized a prior period deficiency credit of $0.1 million toward the excess volume. Prior year credits of $1.8 million expired unused, leaving a cumulative balance of minimum volume deficiency credits available to Green Plains Trade of $1.9 million. These credits expire, if unused, as follows: • $0.8 million, expiring on December 31, 2022; and • $1.1 million, expiring on March 31, 2023. The above credits have been previously recognized as revenue by the partnership, and as such, future volumes throughput by Green Plains Trade in excess of the quarterly minimum volume commitment, up to the amount of these credits, will not be recognized in revenue in future periods prior to expiration. Under the rail transportation services agreement, Green Plains Trade is obligated to use the partnership to transport ethanol and other fuels from receipt points identified by Green Plains Trade to nominated delivery points. The average daily railcar volumetric capacity provided by the partnership was 74.7 mmg and 73.0 mmg, respectively, and the associated average monthly fee was approximately $0.0250 and $0.0236 per gallon, respectively, during the three and nine months ended September 30, 2022. The average daily railcar volumetric capacity provided by the partnership was 68.6 mmg and 70.3 mmg, respectively, and the associated monthly fee was approximately $0.0228 and $0.0230 per gallon, respectively, during the three and nine months ended September 30, 2021. The partnership’s leased railcar fleet consisted of approximately 2,500 and 2,300 railcars as of September 30, 2022 and 2021, respectively. Green Plains Trade is also obligated to use the partnership for logistical operations management and other services related to average daily railcar volumetric capacity provided by Green Plains Trade, which was approximately 0.7 mmg during the three and nine months ended September 30, 2022 and 2021. Green Plains Trade is obligated to pay a monthly fee of approximately $0.0013 per gallon for these services. In addition, Green Plains Trade reimburses the partnership for costs related to: (1) railcar switching and unloading fees; (2) increased costs related to changes in law or governmental regulation related to the specification, operation or maintenance of railcars; (3) demurrage charges, except when the charges are due to the partnership’s gross negligence or willful misconduct; and (4) fees related to rail transportation services under transportation contracts with third-party common carriers. As needed, Green Plains Trade contracts with the partnership for additional railcar volumetric capacity during the normal course of business at comparable margins. Under the trucking transportation agreement, Green Plains Trade pays the partnership to transport ethanol and other fuels by truck from identified receipt points to various delivery points. Green Plains Trade is obligated to pay a monthly trucking transportation services fee equal to the aggregate volume transported in a calendar month by the partnership’s trucks, multiplied by the applicable rate for each truck lane. A truck lane is defined as a specific and routine route of travel between a point of origin and point of destination. Rates for each truck lane are negotiated based on product, location, mileage and other factors. Green Plains Trade reimburses the partnership for costs related to: (1) truck switching and unloading fees; (2) increased costs related to changes in law or governmental regulation related to the specification, operation and maintenance of trucks; and (3) fees related to trucking transportation services under transportation contracts with third-party common carriers. Under the existing Birmingham terminal services agreement, effective through December 31, 2023, Green Plains Trade is obligated to throughput a minimum volume commitment of approximately 8.3 mmg per month and pay associated throughput fees, as well as fees for ancillary services. The partnership recorded revenues from Green Plains Trade under the storage and throughput agreement and rail transportation services agreement of $17.2 million and $50.1 million for the three and nine months ended September 30, 2022, respectively, and $16.2 million and $49.9 million for the three and nine months ended September 30, 2021, respectively. In addition, the partnership recorded revenues from Green Plains Trade and other Green Plains subsidiaries related to trucking and terminal services of $1.9 million and $5.8 million for the three and nine months ended September 30, 2022, respectively, and $2.0 million and $6.2 million for the three and nine months ended September 30, 2021, respectively. Cash Distributions The partnership distributed $5.4 million and $16.1 million to Green Plains related to the quarterly cash distribution paid for the three and nine months ended September 30, 2022, respectively, and $1.4 million and $4.3 million for the three and nine months ended September 30, 2021, respectively.
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Equity Method Investment |
9 Months Ended |
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Sep. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investment | EQUITY METHOD INVESTMENT NLR Energy Logistics LLC The partnership and Delek Renewables LLC have a 50/50 joint venture, NLR Energy Logistics LLC, which operates a unit train terminal in the Little Rock, Arkansas area with capacity to unload 110-car unit trains and provide approximately 100,000 barrels of storage. As of September 30, 2022, the partnership’s investment balance in the joint venture was $3.6 million. The partnership does not consolidate any part of the assets or liabilities or operating results of its equity method investee. The partnership’s share of net income or loss in the investee increases or decreases, as applicable, the carrying value of the investment. With respect to NLR, the partnership determined that this entity does not represent a variable interest entity and consolidation is not required. In addition, although the partnership has the ability to exercise significant influence over the joint venture through board representation and voting rights, all significant decisions require the consent of the other investor without regard to economic interest.
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Basis of Presentation, Description of Business and Summary of Significant Accounting Policies (Policies) |
9 Months Ended |
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Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization References to “we,” “our,” “us” or “the partnership” in the consolidated financial statements and notes to the consolidated financial statements refer to Green Plains Partners LP and its subsidiaries. Green Plains Holdings LLC, a wholly owned subsidiary of Green Plains Inc., serves as the general partner of the partnership. References to (i) “the general partner” and “Green Plains Holdings” refer to Green Plains Holdings LLC; (ii) “the parent,” “the sponsor” and “Green Plains” refer to Green Plains Inc.; and (iii) “Green Plains Trade” refers to Green Plains Trade Group LLC, a wholly owned subsidiary of Green Plains.
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Consolidated Financial Statements | Consolidated Financial Statements The consolidated financial statements include the accounts of the partnership and its controlled subsidiaries. All significant intercompany balances and transactions are eliminated on a consolidated basis for reporting purposes. Results for the interim periods presented are not necessarily indicative of the expected results for the entire year. The accompanying unaudited consolidated financial statements are prepared in accordance with GAAP for interim financial information and instructions to Form 10-Q and Article 10 of Regulation S-X. Because they do not include all of the information and footnotes required by GAAP, the consolidated financial statements should be read in conjunction with the partnership’s 2021 annual report on Form 10-K for the year ended December 31, 2021, as filed with the SEC on February 18, 2022. The partnership accounts for its interest in joint ventures using the equity method of accounting, with its investment recorded at the acquisition cost plus the partnership’s share of equity in undistributed earnings and reduced by the partnership’s share of equity in undistributed losses and distributions received.
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Use of Estimates in the Preparation of Consolidated Financial Statements | Use of Estimates in the Preparation of Consolidated Financial Statements Preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and revenues and expenses during the reporting period. The partnership bases its estimates on historical experience and assumptions it believes are proper and reasonable under the circumstances. The partnership regularly evaluates the appropriateness of these estimates and assumptions. Actual results could differ from those estimates. Key accounting policies, including, but not limited to, those related to leases, depreciation of property and equipment, asset retirement obligations, and impairment of long-lived assets and goodwill are impacted by judgments, assumptions and estimates used to prepare the consolidated financial statements.
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Description of Business | Description of Business The partnership provides fuel storage and transportation services by owning, operating, developing and acquiring ethanol and fuel storage terminals, transportation assets and other related assets and businesses. The partnership is its parent’s primary downstream logistics provider to support the parent’s approximately 1.0 bgy ethanol marketing and distribution business since the partnership’s assets are the principal method of storing and delivering the ethanol the parent produces. The ethanol produced by the parent is fuel grade, made principally from starch extracted from corn, and is primarily used for blending with gasoline. Ethanol currently comprises approximately 10% of the U.S. gasoline market and is an economical source of octane and oxygenates for blending into the fuel supply. The partnership does not take ownership of, or receive any payments based on the value of the ethanol or other fuels it handles; as a result, the partnership does not have any direct exposure to fluctuations in commodity prices. |
Revenue Recognition | Revenue Recognition The partnership recognizes revenue when obligations under the terms of a contract with a customer are satisfied. Generally, this occurs with the completion of services or the transfer of control of products to the customer or another specified third party. For contracts with customers in which a take-or-pay commitment exists, any minimum volume deficiency charges are recognized as revenue in the period incurred and are not allowed to be credited towards excess volumes in future periods. The partnership generates a substantial portion of its revenues under fee-based commercial agreements with Green Plains Trade. Operating lease revenue related to minimum volume commitments is recognized on a straight-line basis over the term of the lease. Under the terms of the storage and throughput agreement with Green Plains Trade, to the extent shortfalls associated with minimum volume commitments in the previous four quarters continue to exist, volumes in excess of the minimum volume commitment are applied to those shortfalls. Remaining excess volumes generating operating lease revenue are recognized as incurred.
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Operations and Maintenance Expenses | Operations and Maintenance Expenses The partnership’s operations and maintenance expenses consist primarily of lease expenses related to the transportation assets, labor expenses, outside contractor expenses, insurance premiums, repairs and maintenance expenses, and utility costs. These expenses also include fees for certain management, maintenance and operational services to support the storage and terminal facilities, trucks, and leased railcar fleet allocated by Green Plains under the operational services and secondment agreement.
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Concentrations of Credit Risk | Concentrations of Credit Risk In the normal course of business, the partnership is exposed to credit risk resulting from the possibility a loss may occur due to failure of another party to perform according to the terms of their contract. The partnership provides fuel storage and transportation services for various parties with a significant portion of its revenues earned from Green Plains Trade. The partnership continually monitors its credit risk exposure and concentrations. Please refer to Note 2 – Revenue and Note 10 – Related Party Transactions to the consolidated financial statements for additional information. |
Impairment of Long-Lived Assets and Goodwill | Impairment of Long-Lived Assets and Goodwill The partnership reviews its long-lived assets, currently consisting primarily of property and equipment and operating lease right-of-use assets, for impairment when events or changes in circumstances indicate that the carrying amount of a long-lived asset may not be recoverable. Recoverability of assets to be held and used is measured by comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. No impairment charges were recorded for the periods reported. The partnership’s goodwill currently is comprised of amounts recognized by the MLP predecessor related to terminal services assets. The partnership reviews goodwill at the reporting unit level for impairment at least annually, as of October 1, or more frequently when events or changes in circumstances indicate that impairment may have occurred.
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Leases | Leases The partnership leases certain facilities, parcels of land, and railcars. These leases are accounted for as operating leases, with lease expense recognized on a straight-line basis over the lease term. The term of the lease may include options to extend or terminate the lease when it is reasonably certain that such options will be exercised. For leases with initial terms greater than 12 months, the partnership records operating lease right-of-use assets and corresponding operating lease liabilities. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. The partnership had $0.1 million short-term lease expense for the three and nine months ended September 30, 2022 and no short term lease expense for the three and nine months ended September 30, 2021. Operating lease right-of-use assets represent the right to control an underlying asset for the lease term and operating lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the partnership’s leases do not provide an implicit rate, the incremental borrowing rate is used based on information available at the commencement date to determine the present value of future payments. The partnership utilizes a portfolio approach for lease classification, which allows for an entity to group together leases with similar characteristics, provided that its application does not create a material difference when compared to accounting for the leases at a contract level. For the partnership’s railcar leases, the partnership combines the railcars within each contract rider and accounts for each contract rider as an individual lease. From a lessee perspective, the partnership combines both the lease and non-lease components and accounts for them as one lease component. Certain of the partnership’s railcar agreements provide for maintenance costs to be the responsibility of the partnership as incurred or charged by the lessor. This maintenance cost is a non-lease component that the partnership combines with the monthly rental payment and accounts for the total cost as operating lease expense. In addition, the partnership has a land lease that contains a non-lease component for the handling and unloading services the landlord provides. The partnership combines the cost of services with the land lease cost and accounts for the total as operating lease expense. The partnership records operating lease revenue as part of its operating lease agreements for storage and throughput services, rail transportation services, and certain terminal services. In addition, the partnership may sublease certain of its railcars to third parties on a short-term basis. These subleases are classified as operating leases, with the associated sublease revenue recognized on a straight-line basis over the sublease lease term. From a lessor perspective, the partnership classifies certain costs as lease costs for accounting purposes, which may differ from a tax or legal perspective. The partnership combines both the lease and non-lease components and accounts for them as one lease component. The storage and throughput agreement consists of costs paid by Green Plains Trade for the rental of the terminal facilities, which for accounting purposes are treated as lease costs, as well as other costs for the throughput services provided by the partnership, which are treated as non-lease costs. For this agreement, the partnership combines the facility rental revenue and the service revenue and accounts for the total as leasing revenue. Similarly, the railcar transportation services agreement consists of costs paid by Green Plains Trade for the use of the partnership’s railcar assets, which are treated as lease costs for accounting purposes, as well as costs for logistical operations management and other services, which are treated as non-lease costs. For this agreement, the partnership combines the railcar rental revenue and the service revenue and accounts for the total as leasing revenue.
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Asset Retirement Obligations | Asset Retirement ObligationsThe partnership records an ARO for the fair value of the estimated costs to retire a tangible long-lived asset in the period incurred if it can be reasonably estimated, which is subsequently adjusted for accretion expense. Corresponding asset retirement costs are capitalized as a long-lived asset and depreciated on a straight-line basis over the asset’s remaining useful life. The expected present value technique used to calculate the fair value of the AROs includes assumptions about costs, settlement dates, interest accretion, and inflation. Changes in assumptions, such as the amount or timing of estimated cash flows, could increase or decrease the AROs. The partnership’s AROs are based on legal obligations to perform remedial activity related to land, machinery and equipment when certain operating leases expire. |
Segment Reporting | Segment Reporting The partnership accounts for segment reporting in accordance with ASC 280, Segment Reporting, which establishes standards for entities reporting information about the operating segments and geographic areas in which they operate. Management evaluated how its chief operating decision maker has organized the partnership for purposes of making operating decisions and assessing performance, and concluded it has one reportable segment.
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Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2020, the FASB issued amended guidance in ASC 848, Reference Rate Reform, and subsequent updates in January 2021 and October 2022, which provide optional expedients and exceptions to U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burden related to the expected market transition from LIBOR and other interbank offered rates to alternative reference rates. The expedients and exceptions provided by the amended guidance do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2024, except for hedging relationships existing as of December 31, 2024, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The guidance is effective upon issuance and to be applied prospectively from any date beginning March 12, 2020, through December 31, 2024. The partnership does not have any hedges and the amended guidance is not expected to have a material impact on the partnership’s consolidated financial statements.
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Revenue (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disaggregation of Revenue by Major Source | The following table disaggregates our revenue by major source (in thousands):
(1) Leasing revenues do not represent revenues recognized from contracts with customers under ASC 606, Revenue from Contracts with Customers, and are accounted for under ASC 842, Leases.
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Schedule of Changes in Unearned Revenue from Service Agreements | The following table reflects the changes in our unearned revenue from service agreements, which is recorded in accrued and other liabilities on the consolidated balance sheets, for the three and nine months ended September 30, 2022 (in thousands):
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Dispositions (Tables) |
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Schedule of Assets and Liabilities Disposed of | The following is a summary of assets and liabilities disposed of or assumed (in thousands):
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Unit-Based Compensation (Tables) |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Non-Vested Unit Based Activity | The non-vested unit-based award activity for the nine months ended September 30, 2022, is as follows:
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Partners' Equity (Tables) |
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Partners' Deficit | Changes in partners’ equity are as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Rollforward of the Number of Common Limited Partner Units Outstanding | A roll forward of the number of common limited partner units outstanding is as follows:
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||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Total Cash Distributions Declared | The total cash distributions declared for the three and nine months ended September 30, 2022 and 2021, are as follows (in thousands):
|
Earnings Per Unit (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Calculation of Earnings Per Limited Partner Unit - Basic and Diluted | The following tables show the calculation of earnings per limited partner unit – basic and diluted (in thousands, except for per unit data):
|
Commitments and Contingencies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Lease Expense | The components of lease expense for the three and nine months ended September 30, 2022 and 2021, are as follows (in thousands):
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Schedule of Supplemental Cash Flow Information Related to Operating Leases | Supplemental cash flow information related to operating leases is as follows (in thousands):
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Schedule of Supplemental Balance Sheet Information Related to Operating Leases | Supplemental balance sheet information related to operating leases is as follows:
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Schedule of Aggregate Minimum Lease Payments | Aggregate minimum lease payments under the operating lease agreements for the remainder of 2022 and in future years are as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Lease Revenue | The components of lease revenue for the three and nine months ended September 30, 2022 and 2021, are as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Minimum Future Rental Revenue | Anticipated minimum operating lease revenue under this agreement assuming a consistent rate of $0.05312 per gallon for the remainder of 2022 and in future years, is as follows (in thousands):
Anticipated minimum operating lease revenue under this agreement for the remainder of 2022 and in future years is as follows (in thousands):
|
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Schedule of Contractual Obligation | Aggregate minimum payments under these agreements for the remainder of 2022 and in future years are as follows (in thousands):
|
Basis of Presentation, Description of Business and Summary of Significant Accounting Policies (Details) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022
USD ($)
|
Sep. 30, 2021
USD ($)
|
Sep. 30, 2022
USD ($)
segment
|
Sep. 30, 2021
USD ($)
|
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Impairment charges | $ 0 | $ 0 | $ 0 | $ 0 |
Short-term lease expense | $ 100,000 | $ 0 | $ 100,000 | $ 0 |
Number of reportable segments | segment | 1 |
Revenue - Disaggregation of Revenue by Major Source (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 20,066 | $ 19,251 | $ 58,820 | $ 59,358 |
Service revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 2,886 | 2,988 | 8,741 | 9,382 |
Terminal services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 1,864 | 1,987 | 5,984 | 6,196 |
Trucking and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 1,022 | 1,001 | 2,757 | 3,186 |
Leasing revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 17,180 | 16,263 | 50,079 | 49,976 |
Storage and throughput services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 11,565 | 11,564 | 34,693 | 35,389 |
Railcar transportation services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 5,615 | 4,688 | 15,386 | 14,525 |
Terminal services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 0 | $ 11 | $ 0 | $ 62 |
Revenue - Narrative (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022
USD ($)
|
Sep. 30, 2021
USD ($)
|
Sep. 30, 2022
USD ($)
mi
|
Sep. 30, 2021
USD ($)
|
|
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 20,066 | $ 19,251 | $ 58,820 | $ 59,358 |
Green Plains Trade Group LLC | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 19,000 | $ 18,300 | $ 55,900 | $ 56,100 |
Minimum | ||||
Disaggregation of Revenue [Line Items] | ||||
Payment terms (in days) | 10 days | |||
Percent of partnership's revenue, major customers benchmark (as a percent) | 10.00% | 10.00% | 10.00% | 10.00% |
Maximum | ||||
Disaggregation of Revenue [Line Items] | ||||
Average trucking miles traveled from receipt point to delivery point (in miles) | mi | 100 | |||
Payment terms (in days) | 30 days |
Revenue - Changes in Unearned Revenue From Service Agreements (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Sep. 30, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
|
Contract with Customer, Liability [Roll Forward] | |||
Beginning balance | $ 132 | $ 112 | $ 210 |
Revenue recognized included in beginning balance | (132) | (112) | (210) |
Net additions | 204 | 132 | 112 |
Ending balance | $ 204 | $ 132 | $ 112 |
Dispositions - Narrative (Details) $ in Millions |
Mar. 22, 2021
USD ($)
|
---|---|
Ethanol Plant In Ord, Nebraska | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Total consideration received | $ 27.5 |
Dispositions - Summary of Assets and Liabilities Disposed of (Details) - Storage Assets Located Adjacent To Ord Plant $ in Thousands |
Mar. 22, 2021
USD ($)
|
---|---|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Total consideration | $ 27,500 |
Property and equipment, net | 542 |
Operating lease right-of-use assets | 1,811 |
Operating lease current liabilities | (1,021) |
Operating lease long-term liabilities | (790) |
Total identifiable net assets | 542 |
Partners' equity effect | $ 26,958 |
Unit-Based Compensation - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | 2,500,000 | 2,500,000 | ||
Limited Partner Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost (benefit) | $ 61 | $ 60 | $ 180 | $ 219 |
Unrecognized compensation costs | $ 180 | $ 180 |
Unit-Based Compensation - Non-Vested Unit Based Activity (Details) |
9 Months Ended |
---|---|
Sep. 30, 2022
$ / shares
shares
| |
Non-Vested Units | |
Non-vested, beginning balance (in shares) | shares | 19,482 |
Granted (in shares) | shares | 19,707 |
Vested (in shares) | shares | (19,482) |
Non-vested, ending balance (in shares) | shares | 19,707 |
Weighted-Average Grant-Date Fair Value | |
Non-vested, beginning balance (in dollars per share) | $ / shares | $ 12.32 |
Granted (in dollars per share) | $ / shares | 12.18 |
Vested (in dollars per share) | $ / shares | 12.32 |
Non-vested, ending balance (in dollars per share) | $ / shares | $ 12.18 |
Weighted-Average Remaining Vesting Term (in years) | 9 months 18 days |
Partners' Equity - Changes in Partners' Deficit (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Aug. 12, 2022 |
May 13, 2022 |
Feb. 11, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Sep. 30, 2021 |
Jun. 30, 2021 |
Mar. 31, 2021 |
|
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||
Beginning balance | $ 2,315 | $ 2,283 | $ 2,303 | $ (4,004) | $ (11,540) | $ (46,462) | |||
Quarterly cash distributions to unitholders | $ (10,700) | $ (10,500) | $ (10,400) | $ (10,674) | $ (10,547) | $ (10,429) | $ (2,844) | $ (2,842) | $ (2,842) |
Quarterly distribution paid (in dollars per share) | $ 0.45 | $ 0.445 | $ 0.44 | $ 0.45 | $ 0.445 | $ 0.44 | $ 0.12 | $ 0.12 | $ 0.12 |
Net income | $ 10,166 | $ 10,519 | $ 10,350 | $ 9,425 | $ 10,298 | $ 10,727 | |||
Ord disposition | 26,958 | ||||||||
Unit-based compensation, including general partner net contributions | 61 | 60 | 59 | 65 | 80 | 79 | |||
Ending balance | 1,868 | 2,315 | 2,283 | 2,642 | (4,004) | (11,540) | |||
Limited Partners | Common Units- Public | |||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||
Beginning balance | 135,733 | 135,686 | 135,666 | 132,510 | 128,771 | 124,823 | |||
Quarterly cash distributions to unitholders | (5,247) | (5,180) | (5,122) | (1,397) | (1,395) | (1,395) | |||
Net income | 4,997 | 5,167 | 5,083 | 4,630 | 5,054 | 5,264 | |||
Ord disposition | 0 | ||||||||
Unit-based compensation, including general partner net contributions | 61 | 60 | 59 | 60 | 80 | 79 | |||
Ending balance | 135,544 | 135,733 | 135,686 | 135,803 | 132,510 | 128,771 | |||
Limited Partners | Common Units- Green Plains | |||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||
Beginning balance | (133,472) | (133,458) | (133,420) | (136,443) | (140,091) | (170,368) | |||
Quarterly cash distributions to unitholders | (5,214) | (5,156) | (5,098) | (1,390) | (1,390) | (1,390) | |||
Net income | 4,965 | 5,142 | 5,060 | 4,607 | 5,038 | 5,248 | |||
Ord disposition | 26,419 | ||||||||
Unit-based compensation, including general partner net contributions | 0 | 0 | 0 | 0 | 0 | 0 | |||
Ending balance | (133,721) | (133,472) | (133,458) | (133,226) | (136,443) | (140,091) | |||
General Partner | |||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||
Beginning balance | 54 | 55 | 57 | (71) | (220) | (917) | |||
Quarterly cash distributions to unitholders | (213) | (211) | (209) | (57) | (57) | (57) | |||
Net income | 204 | 210 | 207 | 188 | 206 | 215 | |||
Ord disposition | 539 | ||||||||
Unit-based compensation, including general partner net contributions | 0 | 0 | 0 | 5 | 0 | 0 | |||
Ending balance | $ 45 | $ 54 | $ 55 | $ 65 | $ (71) | $ (220) |
Partners' Equity -Rollforward of the Number of Common Limited Partner Units Outstanding (Details) |
9 Months Ended |
---|---|
Sep. 30, 2022
shares
| |
Increase (Decrease) in Partners' Capital [Roll Forward] | |
Units, Beginning of period | 23,227,653 |
Units issued under the LTIP | 19,707 |
Units surrendered for tax purposes | (538) |
Units, Ending of period | 23,246,822 |
Common Units- Public | |
Increase (Decrease) in Partners' Capital [Roll Forward] | |
Units issued under the LTIP | 19,707 |
Units surrendered for tax purposes | (538) |
Units, Ending of period | 11,660,274 |
Common Units- Green Plains | |
Increase (Decrease) in Partners' Capital [Roll Forward] | |
Units, Beginning of period | 11,586,548 |
Units issued under the LTIP | 0 |
Units surrendered for tax purposes | 0 |
Units, Ending of period | 11,586,548 |
Partners' Equity - Total Cash Distributions Declared (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Distribution Made to Limited Partner [Line Items] | ||||
Total distributions declared | $ 10,793 | $ 10,310 | $ 32,015 | $ 15,996 |
General Partner | ||||
Distribution Made to Limited Partner [Line Items] | ||||
Total distributions declared | 216 | 206 | 640 | 320 |
Limited Partners | Limited partner common units - public | ||||
Distribution Made to Limited Partner [Line Items] | ||||
Total distributions declared | 5,305 | 5,064 | 15,733 | 7,856 |
Limited Partners | Limited partner common units - Green Plains | ||||
Distribution Made to Limited Partner [Line Items] | ||||
Total distributions declared | 5,272 | 5,040 | 15,642 | 7,820 |
Limited Partners | Total distributions to limited partners | ||||
Distribution Made to Limited Partner [Line Items] | ||||
Total distributions declared | $ 10,577 | $ 10,104 | $ 31,375 | $ 15,676 |
Earnings Per Unit - Narrative (Details) |
9 Months Ended |
---|---|
Sep. 30, 2022
shares
| |
Earnings Per Share [Abstract] | |
Potentially dilutive common or subordinated units outstanding (in shares) | 0 |
Commitments and Contingencies - Components of Lease Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Commitments and Contingencies Disclosure [Abstract] | ||||
Operating lease expense | $ 3,680 | $ 3,276 | $ 10,849 | $ 10,631 |
Variable lease expense (benefit) | 172 | 33 | 334 | (124) |
Total lease expense | $ 3,852 | $ 3,309 | $ 11,183 | $ 10,507 |
Commitments and Contingencies - Supplemental Cash Flow Information Related to Operating Leases (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Commitments and Contingencies Disclosure [Abstract] | ||||
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases | $ 3,357 | $ 3,188 | $ 10,044 | $ 10,373 |
Right-of-use assets obtained in exchange for lease obligations: Operating leases | 0 | 2,959 | 7,740 | 12,641 |
Right-of-use assets and lease obligations derecognized due to lease modifications: Operating leases | $ 0 | $ 1,838 | $ 0 | $ 1,889 |
Commitments and Contingencies - Supplemental Balance Sheet Information Related to Operating Leases (Details) |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
Weighted average remaining lease term | 3 years 10 months 24 days | 4 years 1 month 6 days |
Weighted average discount rate | 3.53% | 3.65% |
Commitments and Contingencies - Aggregate Minimum Lease Payments (Details) $ in Thousands |
Sep. 30, 2022
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
2022 | $ 3,759 |
2023 | 12,576 |
2024 | 10,533 |
2025 | 7,962 |
2026 | 3,078 |
Thereafter | 3,236 |
Total | 41,144 |
Less: Present value discount | (2,706) |
Operating lease liabilities | $ 38,438 |
Commitments and Contingencies - Components of Lease Revenue (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Jul. 01, 2020
$ / gal
|
Sep. 30, 2022
USD ($)
|
Sep. 30, 2021
USD ($)
|
Sep. 30, 2022
USD ($)
$ / gal
|
Sep. 30, 2021
USD ($)
|
|
Related Party Transaction [Line Items] | |||||
Operating lease revenue | $ 16,656 | $ 15,631 | $ 48,247 | $ 48,191 | |
Variable lease revenue | 524 | 632 | 1,832 | 1,785 | |
Total lease revenue | $ 17,180 | $ 16,263 | $ 50,079 | $ 49,976 | |
Fee-based Storage and Throughput Agreement | Green Plains Trade | |||||
Related Party Transaction [Line Items] | |||||
Agreement rate (in dollars per gallon) | $ / gal | 0.05 | 0.05312 |
Commitments and Contingencies - Minimum Future Rental Revenue (Details) $ in Thousands |
9 Months Ended | |
---|---|---|
Jul. 01, 2020
$ / gal
|
Sep. 30, 2022
USD ($)
$ / gal
|
|
Fee-based Storage and Throughput Agreement | Green Plains Trade | ||
Lessor, Lease, Description [Line Items] | ||
Agreement rate (in dollars per gallon) | $ / gal | 0.05 | 0.05312 |
Amended Storage And Throughput Agreement | ||
Lessor, Lease, Description [Line Items] | ||
2022 | $ 11,564 | |
2023 | 46,257 | |
2024 | 46,257 | |
2025 | 46,257 | |
2026 | 46,257 | |
Thereafter | 115,642 | |
Total | 312,234 | |
Amended Rail Transportation Services Agreement | ||
Lessor, Lease, Description [Line Items] | ||
2022 | 5,564 | |
2023 | 16,771 | |
2024 | 12,714 | |
2025 | 19,831 | |
2026 | 2,743 | |
Thereafter | 1,203 | |
Total | $ 58,826 |
Commitments and Contingencies - Aggregate Minimum Agreement Payments (Details) $ in Thousands |
Sep. 30, 2022
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
2022 | $ 165 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
Thereafter | 0 |
Total | $ 165 |
Equity Method Investment (Details) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2022
USD ($)
train_car_unit
bbl
|
Dec. 31, 2021
USD ($)
|
|
Related Party Transaction [Line Items] | ||
Investment in equity method investee | $ 3,647 | $ 3,193 |
NLR Energy Logistics LLC | ||
Related Party Transaction [Line Items] | ||
Joint venture, partnership ownership percentage (as a percent) | 50.00% | |
Delek Renewables LLC | NLR Energy Logistics LLC | ||
Related Party Transaction [Line Items] | ||
Joint venture, partnership ownership percentage (as a percent) | 50.00% | |
NLR Energy Logistics LLC | ||
Related Party Transaction [Line Items] | ||
Number of train car units (in units) | train_car_unit | 110 | |
Number of barrels of storage (in barrels) | bbl | 100,000 | |
Investment in equity method investee | $ 3,600 |