Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 02, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | MAGELLAN MIDSTREAM PARTNERS LP | |
Entity Central Index Key | 1,126,975 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 227,427,247 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Transportation and terminals revenue | $ 400,944 | $ 360,517 | $ 1,120,560 | $ 1,031,722 | |
Product sales revenue | 172,731 | 155,865 | 455,827 | 589,585 | |
Affiliate management fee revenue | 3,557 | 5,219 | 10,478 | 15,346 | |
Total revenue | 577,232 | 521,601 | 1,586,865 | 1,636,653 | |
Costs and expenses: | |||||
Operating | 137,906 | 132,387 | 367,834 | 330,758 | |
Cost of product sales | 85,522 | 91,591 | 316,208 | 398,734 | |
Depreciation and amortization | 42,043 | 38,054 | 124,180 | 122,462 | |
General and administrative | 37,612 | 35,377 | 111,052 | 109,621 | |
Total costs and expenses | 303,083 | 297,409 | 919,274 | 961,575 | |
Earnings of non-controlled entities | 15,521 | 1,645 | 49,653 | 4,066 | |
Operating profit | 289,670 | 225,837 | 717,244 | 679,144 | |
Interest expense | 39,779 | 34,993 | 116,142 | 108,674 | |
Interest income | (310) | (374) | (993) | (1,171) | |
Interest capitalized | (3,984) | (9,205) | (9,037) | (21,358) | |
Debt placement fee amortization expense | 640 | 566 | 1,867 | 1,767 | |
Other expense (income) | 1,706 | 0 | (4,554) | 0 | |
Income before provision for income taxes | 251,839 | 199,857 | 613,819 | 591,232 | |
Provision for income taxes | 867 | 1,237 | 1,820 | 3,798 | |
Net income | $ 250,972 | $ 198,620 | $ 611,999 | $ 587,434 | |
Basic net income per limited partner unit | $ 1.10 | $ 0.87 | $ 2.69 | $ 2.59 | |
Diluted net income per limited partner unit | $ 1.10 | $ 0.87 | $ 2.69 | $ 2.58 | |
Weighted average number of limited partner units outstanding used for basic net income per unit calculation | [1] | 227,580 | 227,294 | 227,540 | 227,242 |
Weighted average number of limited partner units outstanding used for diluted net income per unit calculation | [1] | 227,945 | 227,830 | 227,702 | 227,422 |
[1] | See Note 10–Long-Term Incentive Plan for additional information regarding our weighted average unit calculations. |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Net income | $ 250,972 | $ 198,620 | $ 611,999 | $ 587,434 | |
Other comprehensive income: | |||||
Net loss on cash flow hedges(1) | [1] | (3,410) | (1,830) | (16,939) | (5,443) |
Reclassification of net loss (gain) on cash flow hedges to income(1) | [1] | 388 | 119 | 976 | (60) |
Amortization of prior service credit(2) | [2] | (928) | (928) | (2,784) | (2,751) |
Amortization of actuarial loss(2) | [2] | 1,798 | 985 | 5,393 | 3,001 |
Settlement cost(2) | [2] | 0 | 30 | 0 | 1,599 |
Total other comprehensive loss | (2,152) | (1,624) | (13,354) | (3,654) | |
Comprehensive income | $ 248,820 | $ 196,996 | $ 598,645 | $ 583,780 | |
[1] | See Note 8–Derivative Financial Instruments for details of the amount of gain/loss recognized in accumulated other comprehensive loss ("AOCL") for derivative financial instruments and the amount of gain/loss reclassified from AOCL into income. | ||||
[2] | See Note 6–Employee Benefit Plans for details of the changes in employee benefit plan assets and benefit obligations recognized in AOCL. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and cash equivalents | $ 9,007 | $ 17,063 |
Trade accounts receivable | 113,760 | 84,465 |
Other accounts receivable | 11,099 | 15,711 |
Inventory | 135,181 | 157,762 |
Energy commodity derivatives contracts, net | 49,172 | 87,151 |
Energy commodity derivatives deposits | 0 | 6,184 |
Other current assets | 39,937 | 34,331 |
Total current assets | 358,156 | 402,667 |
Property, plant and equipment | 5,998,280 | 5,533,935 |
Less: Accumulated depreciation | 1,317,630 | 1,204,601 |
Net property, plant and equipment | 4,680,650 | 4,329,334 |
Investments in non-controlled entities | 753,568 | 613,867 |
Long-term receivables | 22,055 | 28,611 |
Goodwill | 53,260 | 53,260 |
Other intangibles (less accumulated amortization of $11,526 and $13,029 at December 31, 2014 and September 30, 2015, respectively) | 2,535 | 4,573 |
Debt placement costs (less accumulated amortization of $8,952 and $10,819 at December 31, 2014 and September 30, 2015, respectively) | 20,971 | 18,084 |
Tank bottoms and linefill | 36,491 | 42,585 |
Other noncurrent assets | 38,497 | 24,304 |
Total assets | 5,966,183 | 5,517,285 |
LIABILITIES AND PARTNERS' CAPITAL | ||
Accounts payable | 123,813 | 97,131 |
Accrued payroll and benefits | 48,750 | 48,298 |
Accrued interest payable | 45,132 | 45,973 |
Accrued taxes other than income | 54,222 | 47,888 |
Environmental liabilities | 16,575 | 10,564 |
Deferred revenue | 75,283 | 71,142 |
Accrued product purchases | 20,408 | 44,355 |
Energy commodity derivatives contracts, net | 0 | 5,413 |
Energy commodity derivatives deposits | 49,447 | 84,463 |
Other current liabilities | 34,932 | 80,928 |
Total current liabilities | 468,562 | 536,155 |
Long-term debt | 3,407,114 | 2,982,895 |
Long-term pension and benefits | 68,681 | 75,155 |
Other noncurrent liabilities | 24,846 | 29,069 |
Environmental liabilities | $ 14,903 | $ 25,778 |
Commitments and contingencies | ||
Partners’ capital: | ||
Limited partner unitholders (227,068 units and 227,427 units outstanding at December 31, 2014 and September 30, 2015, respectively) | $ 2,076,971 | $ 1,949,773 |
Accumulated other comprehensive loss | (94,894) | (81,540) |
Total partners’ capital | 1,982,077 | 1,868,233 |
Total liabilities and partners' capital | $ 5,966,183 | $ 5,517,285 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowance for doubtful accounts | $ 0 | $ 0 |
Other intangibles, accumulated amortization | 13,029 | 11,526 |
Debt placement costs, accumulated amortization | $ 10,819 | $ 8,952 |
Limited partner unitholders, units outstanding | 227,427,247 | 227,068,257 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Activities: | ||
Net income | $ 611,999 | $ 587,434 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 124,180 | 122,462 |
Debt placement fee amortization expense | 1,867 | 1,767 |
Loss on sale and retirement of assets | 4,378 | 4,830 |
Earnings of non-controlled entities | (49,653) | (4,066) |
Distributions from investments in non-controlled entities | 47,236 | 2,398 |
Equity-based incentive compensation expense | 15,226 | 17,731 |
Amortization of prior service credit, actuarial loss and pension settlement | 2,609 | 1,849 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable and other accounts receivable | (24,601) | 10,929 |
Inventory | 22,581 | (15,251) |
Energy commodity derivatives contracts, net of derivatives deposits | (11,402) | (17,540) |
Accounts payable | 12,226 | 6,483 |
Accrued payroll and benefits | 452 | (669) |
Accrued interest payable | (841) | (574) |
Accrued taxes other than income | 6,334 | 6,596 |
Accrued product purchases | (23,947) | (8,584) |
Deferred revenue | 4,141 | 7,484 |
Current and noncurrent environmental liabilities | (4,864) | (1,172) |
Other current and noncurrent assets and liabilities | (13,817) | (8,792) |
Net cash provided by operating activities | 724,104 | 713,315 |
Investing Activities: | ||
Additions to property, plant and equipment, net(1) | (431,260) | (234,763) |
Proceeds from sale and disposition of assets | 3,178 | 264 |
Acquisition of business | (54,678) | 0 |
Investments in non-controlled entities | (133,373) | (378,220) |
Distributions in excess of earnings of non-controlled entities | 9,341 | 3,918 |
Net cash used by investing activities | (606,792) | (608,801) |
Financing Activities: | ||
Distributions paid | (489,535) | (417,238) |
Net commercial paper borrowings (repayments) | (69,976) | 315,967 |
Borrowings under long-term notes | 499,589 | 257,713 |
Payments on notes | 0 | (250,000) |
Debt placement costs | (4,754) | (2,912) |
Net payment on financial derivatives | (42,908) | (3,613) |
Settlement of tax withholdings on long-term incentive compensation | (17,784) | (14,813) |
Net cash used by financing activities | (125,368) | (114,896) |
Change in cash and cash equivalents | (8,056) | (10,382) |
Cash and cash equivalents at beginning of period | 17,063 | 25,235 |
Cash and cash equivalents at end of period | 9,007 | 14,853 |
Supplemental non-cash investing and financing activities: | ||
Contribution of property, plant and equipment to a non-controlled entity | 13,252 | 0 |
Issuance of limited partner units in settlement of equity-based incentive plan awards | 8,045 | 7,315 |
Additions to property, plant and equipment | (439,721) | (237,240) |
Changes in accounts payable and other current liabilities related to capital expenditures | 8,461 | 2,477 |
Additions to property, plant and equipment | $ (431,260) | $ (234,763) |
Organization, Description of Bu
Organization, Description of Business And Basis Of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Description of Business and Basis of Presentation | Organization, Description of Business and Basis of Presentation Organization Unless indicated otherwise, the terms “our,” “we,” “us” and similar language refer to Magellan Midstream Partners, L.P. together with its subsidiaries. We are a Delaware limited partnership and our limited partner units are traded on the New York Stock Exchange under the ticker symbol “MMP.” Magellan GP, LLC, a wholly-owned Delaware limited liability company, serves as our general partner. Description of Business We are principally engaged in the transportation, storage and distribution of refined petroleum products and crude oil. As of September 30, 2015 , our asset portfolio, including the assets of our joint ventures, consisted of: • our refined products segment, comprised of our 9,500 -mile refined products pipeline system with 52 terminals as well as 28 independent terminals not connected to our pipeline system and our 1,100 -mile ammonia pipeline system; • our crude oil segment, comprised of approximately 1,600 miles of crude oil pipelines and storage facilities with an aggregate storage capacity of approximately 21 million barrels, of which 13 million barrels are used for leased storage; and • our marine storage segment, consisting of five marine terminals located along coastal waterways with an aggregate storage capacity of approximately 26 million barrels. Products transported, stored or distributed through our pipelines and terminals include: • refined products are the output from refineries and are primarily used as fuels by consumers. Refined products include gasoline, diesel fuel, aviation fuel, kerosene and heating oil. Collectively, diesel fuel and heating oil are referred to as distillates; • liquefied petroleum gases, or LPGs, are produced as by-products of the crude oil refining process and in connection with natural gas production. LPGs include butane and propane; • blendstocks are blended with refined products to change or enhance their characteristics such as increasing a gasoline's octane or oxygen content. Blendstocks include alkylates, oxygenates and natural gasoline; • heavy oils and feedstocks are used as burner fuels or feedstocks for further processing by refineries and petrochemical facilities. Heavy oils and feedstocks include No. 6 fuel oil and vacuum gas oil; • crude oil and condensate are used as feedstocks by refineries and petrochemical facilities; • biofuels , such as ethanol and biodiesel, are increasingly required by government mandates; and • ammonia is primarily used as a nitrogen fertilizer. Except for ammonia, we use the term petroleum products to describe any, or a combination, of the above-noted products. Basis of Presentation In the opinion of management, our accompanying consolidated financial statements which are unaudited, except for the consolidated balance sheet as of December 31, 2014 which is derived from our audited financial statements, include all normal and recurring adjustments necessary to present fairly our financial position as of September 30, 2015 , the results of operations for the three and nine months ended September 30, 2014 and 2015 and cash flows for the nine months ended September 30, 2014 and 2015 . The results of operations for the nine months ended September 30, 2015 are not necessarily indicative of the results to be expected for the full year ending December 31, 2015 as profits from our blending activities are realized largely during the first and fourth quarters of each year. Additionally, gasoline demand, which drives transportation volumes and revenues on our pipeline systems, generally trends higher during the summer driving months. Further, the volatility of commodity prices impact the profits from our commodity activities and, to a lesser extent, the volume of petroleum products we ship on our pipelines. Pursuant to the rules and regulations of the Securities and Exchange Commission, the financial statements in this report do not include all of the information and notes normally included with financial statements prepared in accordance with accounting principles generally accepted in the United States. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2014 . Use of Estimates The preparation of our consolidated financial statements in conformity with generally accepted accounting principles in the U.S. ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities that exist at the date of our consolidated financial statements, as well as their impact on the reported amounts of revenue and expense during the reporting periods. Actual results could differ from those estimates. |
Product Sales Revenues
Product Sales Revenues | 9 Months Ended |
Sep. 30, 2015 | |
Product Sales Revenue [Abstract] | |
Product Sales Revenues | Product Sales Revenue The amounts reported as product sales revenue on our consolidated statements of income include revenue from the physical sale of petroleum products and from mark-to-market adjustments from New York Mercantile Exchange ("NYMEX") contracts. See Note 8 – Derivative Financial Instruments for a discussion of our commodity hedging strategies and how our NYMEX contracts impact product sales revenue. All of the petroleum products inventory we physically sell associated with our butane blending and fractionation activities, as well as the barrels from product gains we obtain from our independent and marine terminals, are reported as product sales revenue on our consolidated statements of income. The physical sale of the petroleum products inventory from product gains obtained from our pipeline operations and related activities from terminals physically connected to our pipeline system are reported as adjustments to operating expense. For the three and nine months ended September 30, 2014 and 2015 , product sales revenue included the following (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2014 2015 2014 2015 Physical sale of petroleum products $ 108,320 $ 100,829 $ 555,870 $ 403,395 NYMEX contract adjustments: Change in value of NYMEX contracts that were not designated as hedging instruments associated with our butane blending and fractionation activities 47,546 71,902 33,703 52,432 Other (1 ) — 12 — Total NYMEX contract adjustments 47,545 71,902 33,715 52,432 Total product sales revenue $ 155,865 $ 172,731 $ 589,585 $ 455,827 |
Segment Disclosures
Segment Disclosures | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Disclosures | Segment Disclosures Our reportable segments are strategic business units that offer different products and services. Our segments are managed separately as each segment requires different marketing strategies and business knowledge. Management evaluates performance based on segment operating margin, which includes revenue from affiliates and external customers, operating expenses, cost of product sales and earnings of non-controlled entities. We believe that investors benefit from having access to the same financial measures used by management. Operating margin, which is presented in the following tables, is an important measure used by management to evaluate the economic performance of our core operations. Operating margin is not a GAAP measure, but the components of operating margin are computed using amounts that are determined in accordance with GAAP. A reconciliation of operating margin to operating profit, which is its nearest comparable GAAP financial measure, is included in the tables below. Operating profit includes depreciation and amortization expense and general and administrative ("G&A") expenses that management does not consider when evaluating the core profitability of our separate operating segments. On May 1, 2015, we acquired a refined products terminal in Atlanta, Georgia for net cash consideration of $54.7 million . As this acquired business is not significant to our consolidated operating results and financial position, pro forma financial information and the purchase price allocation of acquired assets and liabilities have not been presented. The results of the acquired operations subsequent to the acquisition date have been included in the accompanying consolidated financial statements and in the tables below in our refined products operating segment. Three Months Ended September 30, 2014 (in thousands) Refined Products Crude Oil Marine Storage Intersegment Eliminations Total Transportation and terminals revenue $ 237,972 $ 78,839 $ 43,706 $ — $ 360,517 Product sales revenue 155,134 — 731 — 155,865 Affiliate management fee revenue — 4,902 317 — 5,219 Total revenue 393,106 83,741 44,754 — 521,601 Operating expenses 101,206 14,375 17,691 (885 ) 132,387 Cost of product sales 91,407 — 184 — 91,591 Earnings of non-controlled entities — (959 ) (686 ) — (1,645 ) Operating margin 200,493 70,325 27,565 885 299,268 Depreciation and amortization expense 23,050 6,918 7,201 885 38,054 G&A expenses 22,600 7,635 5,142 — 35,377 Operating profit $ 154,843 $ 55,772 $ 15,222 $ — $ 225,837 Three Months Ended September 30, 2015 (in thousands) Refined Products Crude Oil Marine Storage Intersegment Eliminations Total Transportation and terminals revenue $ 259,806 $ 96,029 $ 45,109 $ — $ 400,944 Product sales revenue 171,775 — 956 — 172,731 Affiliate management fee revenue — 3,211 346 — 3,557 Total revenue 431,581 99,240 46,411 — 577,232 Operating expenses 104,622 19,479 14,700 (895 ) 137,906 Cost of product sales 85,341 — 181 — 85,522 Losses (earnings) of non-controlled entities 48 (14,906 ) (663 ) — (15,521 ) Operating margin 241,570 94,667 32,193 895 369,325 Depreciation and amortization expense 24,333 9,502 7,313 895 42,043 G&A expenses 22,238 9,818 5,556 — 37,612 Operating profit $ 194,999 $ 75,347 $ 19,324 $ — $ 289,670 Nine Months Ended September 30, 2014 (in thousands) Refined Products Crude Oil Marine Storage Intersegment Eliminations Total Transportation and terminals revenue $ 680,697 $ 226,298 $ 124,727 $ — $ 1,031,722 Product sales revenue 585,178 — 4,407 — 589,585 Affiliate management fee revenue — 14,399 947 — 15,346 Total revenue 1,265,875 240,697 130,081 — 1,636,653 Operating expenses 249,665 35,300 48,321 (2,528 ) 330,758 Cost of product sales 397,980 — 754 — 398,734 Earnings of non-controlled entities — (1,667 ) (2,399 ) — (4,066 ) Operating margin 618,230 207,064 83,405 2,528 911,227 Depreciation and amortization expense 78,305 20,106 21,523 2,528 122,462 G&A expenses 70,993 21,326 17,302 — 109,621 Operating profit $ 468,932 $ 165,632 $ 44,580 $ — $ 679,144 Nine Months Ended September 30, 2015 (in thousands) Refined Products Crude Oil Marine Storage Intersegment Eliminations Total Transportation and terminals revenue $ 710,294 $ 278,345 $ 131,921 $ — $ 1,120,560 Product sales revenue 453,737 — 2,090 — 455,827 Affiliate management fee revenue — 9,449 1,029 — 10,478 Total revenue 1,164,031 287,794 135,040 — 1,586,865 Operating expenses 275,403 49,354 45,916 (2,839 ) 367,834 Cost of product sales 315,301 — 907 — 316,208 Losses (earnings) of non-controlled entities 146 (47,735 ) (2,064 ) — (49,653 ) Operating margin 573,181 286,175 90,281 2,839 952,476 Depreciation and amortization expense 71,742 25,995 23,604 2,839 124,180 G&A expenses 68,730 26,935 15,387 — 111,052 Operating profit $ 432,709 $ 233,245 $ 51,290 $ — $ 717,244 |
Investments in Non-Controlled E
Investments in Non-Controlled Entities (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Non-Controlled Entities | Investments in Non-Controlled Entities Our investments in non-controlled entities at September 30, 2015 were comprised of: Entity Ownership Interest BridgeTex Pipeline Company, LLC ("BridgeTex") 50% Double Eagle Pipeline LLC ("Double Eagle") 50% Osage Pipe Line Company, LLC ("Osage") 50% Powder Springs Logistics, LLC ("Powder Springs") 50% Saddlehorn Pipeline Company, LLC ("Saddlehorn") 40% Seabrook Logistics, LLC ("Seabrook") 50% Texas Frontera, LLC ("Texas Frontera") 50% The management fees we have recognized or will recognize from BridgeTex, Osage, Powder Springs, Saddlehorn, Seabrook and Texas Frontera are or will be reported as affiliate management fee revenue on our consolidated statements of income. At December 31, 2014 and September 30, 2015 , we recognized liabilities of $2.2 million and $0.5 million , respectively, to BridgeTex primarily for pre-paid construction management fees. For the three and nine months ended September 30, 2015 , we recognized pipeline capacity lease revenue from BridgeTex of $8.9 million and $25.8 million , respectively, which we included in transportation and terminals revenue on our consolidated statements of income. We recognized a $2.6 million receivable from BridgeTex at December 31, 2014 . There was no receivable at September 30, 2015 . In third quarter 2015, we purchased surplus pipe from BridgeTex for the amount of $0.6 million . We sold a portion of the pipe purchased from BridgeTex to Saddlehorn for $0.2 million . We recognized throughput revenue from Double Eagle for the three months ended September 30, 2014 and 2015 of $0.7 million and $0.8 million , respectively, and for the nine months ended September 30, 2014 and 2015 of $2.0 million and $2.6 million , respectively, which we included in transportation and terminals revenue. At December 31, 2014 and September 30, 2015 , respectively, we recognized a $0.3 million trade accounts receivable from Double Eagle. The financial results from Texas Frontera are included in our marine storage segment, the financial results from BridgeTex, Double Eagle, Osage, Saddlehorn and Seabrook are included in our crude oil segment and the financial results from Powder Springs are included in our refined products segment as earnings/losses of non-controlled entities. A summary of our investments in non-controlled entities follows (in thousands): BridgeTex All Others Consolidated Investments at December 31, 2014 $ 489,348 $ 124,519 $ 613,867 Additional investment 16,608 130,017 146,625 Earnings of non-controlled entities: Proportionate share of earnings 45,903 5,842 51,745 Amortization of excess investment and capitalized interest (1,529 ) (563 ) (2,092 ) Earnings of non-controlled entities 44,374 5,279 49,653 Less: Distributions of earnings from investments in non-controlled entities 44,374 2,862 47,236 Distributions in excess of earnings of non-controlled entities 9,341 — 9,341 Investments at September 30, 2015 $ 496,615 $ 256,953 $ 753,568 Summarized financial information of our non-controlled entities for the three and nine months ended September 30, 2014 and 2015 follows (in thousands): Three Months Ended September 30, 2014 Three Months Ended September 30, 2015 BridgeTex All Others Consolidated BridgeTex All Others Consolidated Revenue $ 428 $ 8,882 $ 9,310 $ 47,555 $ 12,530 $ 60,085 Net income $ 297 $ 3,370 $ 3,667 $ 28,150 $ 4,151 $ 32,301 Nine Months Ended September 30, 2014 Nine Months Ended September 30, 2015 BridgeTex All Others Consolidated BridgeTex All Others Consolidated Revenue $ 428 $ 27,346 $ 27,774 $ 146,320 $ 33,677 $ 179,997 Net income $ 17 $ 9,241 $ 9,258 $ 91,806 $ 11,525 $ 103,331 |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventory at December 31, 2014 and September 30, 2015 was as follows (in thousands): December 31, 2014 September 30, Refined products $ 67,055 $ 27,864 Liquefied petroleum gases 37,642 42,984 Transmix 36,867 28,608 Crude oil 10,015 29,626 Additives 6,183 6,099 Total inventory $ 157,762 $ 135,181 |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans We sponsor two pension plans for certain union employees and a pension plan primarily for non-union employees, a postretirement benefit plan for selected employees and a defined contribution plan. The following tables present our consolidated net periodic benefit costs related to the pension and postretirement benefit plans for the three and nine months ended September 30, 2014 and 2015 (in thousands): Three Months Ended Three Months Ended September 30, 2014 September 30, 2015 Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits Components of net periodic benefit costs: Service cost $ 3,348 $ 57 $ 4,723 $ 61 Interest cost 1,332 126 1,938 109 Expected return on plan assets (1,588 ) — (2,009 ) — Amortization of prior service credit — (928 ) — (928 ) Amortization of actuarial loss 756 229 1,577 221 Settlement cost 30 — — — Net periodic benefit cost (credit) $ 3,878 $ (516 ) $ 6,229 $ (537 ) Nine Months Ended Nine Months Ended September 30, 2014 September 30, 2015 Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits Components of net periodic benefit costs: Service cost $ 10,052 $ 171 $ 14,168 $ 183 Interest cost 5,021 379 5,815 328 Expected return on plan assets (4,775 ) — (6,028 ) — Amortization of prior service cost (credit) 33 (2,784 ) — (2,784 ) Amortization of actuarial loss 2,315 686 4,730 663 Settlement cost 1,599 — — — Net periodic benefit cost (credit) $ 14,245 $ (1,548 ) $ 18,685 $ (1,610 ) Contributions estimated to be paid into the plans in 2015 are $21.1 million and $1.2 million for the pension and other postretirement benefit plans, respectively. We match our employees' qualifying contributions to our defined contribution plan, resulting in expense to us. Expenses related to the defined contribution plan were $1.7 million and $1.8 million , respectively, for the three months ended September 30, 2014 and 2015 , and $6.3 million and $6.8 million , respectively, for the nine months ended September 30, 2014 and 2015 . Amounts Included in AOCL The changes in AOCL related to employee benefit plan assets and benefit obligations for the three and nine months ended September 30, 2014 and 2015 were as follows (in thousands): Three Months Ended Three Months Ended September 30, 2014 September 30, 2015 Gains (Losses) Included in AOCL Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits Beginning balance $ (33,023 ) $ 1,654 $ (60,104 ) $ (3,110 ) Amortization of prior service credit — (928 ) — (928 ) Amortization of actuarial loss 756 229 1,577 221 Settlement cost 30 — — — Ending balance $ (32,237 ) $ 955 $ (58,527 ) $ (3,817 ) Nine Months Ended Nine Months Ended September 30, 2014 September 30, 2015 Gains (Losses) Included in AOCL Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits Beginning balance $ (36,184 ) $ 3,053 $ (63,257 ) $ (1,696 ) Amortization of prior service cost (credit) 33 (2,784 ) — (2,784 ) Amortization of actuarial loss 2,315 686 4,730 663 Settlement cost 1,599 — — — Ending balance $ (32,237 ) $ 955 $ (58,527 ) $ (3,817 ) |
Debt
Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt Consolidated debt at December 31, 2014 and September 30, 2015 was as follows (in thousands, except as otherwise noted): December 31, 2014 September 30, Weighted-Average Interest Rate for the Nine Months Ended September 30, 2015 (1) Commercial paper (2) $ 296,942 $ 226,966 0.5% $250.0 million of 5.65% Notes due 2016 250,758 250,440 5.7% $250.0 million of 6.40% Notes due 2018 257,280 255,731 5.4% $550.0 million of 6.55% Notes due 2019 567,868 565,064 5.7% $550.0 million of 4.25% Notes due 2021 556,304 555,601 4.0% $250.0 million of 3.20% Notes due 2025 (2) — 249,694 3.2% $250.0 million of 6.40% Notes due 2037 249,017 249,031 6.4% $250.0 million of 4.20% Notes due 2042 248,406 248,429 4.2% $550.0 million of 5.15% Notes due 2043 556,320 556,245 5.1% $250.0 million of 4.20% Notes due 2045 (2) — 249,913 4.6% Total debt $ 2,982,895 $ 3,407,114 4.7% (1) Weighted-average interest rate includes the amortization/accretion of discounts, premiums and gains/losses realized on historical cash flow and fair value hedges recognized as interest expense. (2) These borrowings were outstanding for only a portion of the nine -month period ending September 30, 2015 . The weighted-average interest rate for these borrowings was calculated based on the number of days the borrowings were outstanding during the noted period. All of the instruments detailed in the table above are senior indebtedness. The face value of our debt at December 31, 2014 and September 30, 2015 was $2.9 billion and $3.4 billion , respectively. The difference between the face value and carrying value of our debt outstanding is the unamortized portion of terminated fair value hedges and the unamortized discounts and premiums on debt issuances. Realized gains and losses on fair value hedges and note discounts and premiums are being amortized or accreted to the applicable notes over the respective lives of those notes. 2015 Debt Offerings In March 2015, we issued $250.0 million of our 3.20% notes due 2025 in an underwritten public offering. The notes were issued at 99.871% of par. Net proceeds from this offering were $247.6 million , after underwriting discounts and offering expenses of $2.1 million . Also in March 2015, we issued $250.0 million of our 4.20% notes due 2045 in an underwritten public offering. The notes were issued at 99.965% of par. Net proceeds from this offering were $247.3 million , after underwriting discounts and offering expenses of $2.6 million . The net proceeds from these offerings were used to repay borrowings outstanding under our commercial paper program and for general partnership purposes, including expansion capital. Other Debt Revolving Credit Facility. At September 30, 2015, the total borrowing capacity under our revolving credit facility, with a maturity date of November 2018, was $1.0 billion . Borrowings outstanding under the facility were classified as long-term debt on our consolidated balance sheets. Borrowings under the facility were unsecured and bore interest at LIBOR plus a spread ranging from 1.0% to 1.75% based on our credit ratings. Additionally, an unused commitment fee was assessed at a rate from 0.10% to 0.28% , depending on our credit ratings. The unused commitment fee was 0.125% at September 30, 2015 . Borrowings under this facility could be used for general partnership purposes, including capital expenditures. As of September 30, 2015 , there were no borrowings outstanding under this facility; however, $5.6 million was obligated for letters of credit. Amounts obligated for letters of credit were not reflected as debt on our consolidated balance sheets but decreased our borrowing capacity under the facility. See Note 14 – Subsequent Events for information about amendments made to our revolving credit facility and a new 364 -day credit facility entered into after September 30, 2015. Commercial Paper Program. The maturities of our commercial paper notes vary, but may not exceed 397 days from the date of issuance. The commercial paper notes are sold under customary terms in the commercial paper market and are issued at a discount from par, or alternatively, are sold at par and bear varying interest rates on a fixed or floating basis. The commercial paper we can issue is limited by the amounts available under our revolving credit facility up to an aggregate principal amount of $1.0 billion and, therefore, is classified as long-term debt. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Interest Rate Derivatives We periodically enter into interest rate derivatives to hedge the fair value of our debt or interest on expected debt issuances, and we have historically designated these derivatives as cash flow or fair value hedges for accounting purposes. Adjustments resulting from discontinued hedges continue to be recognized in accordance with their historic hedging relationships. Through September 30, 2015 , we entered into $150.0 million of forward-starting interest rate swap agreements to hedge against the risk of variability of future interest payments on a portion of debt we anticipate issuing in 2016. The fair value of these contracts at September 30, 2015 was recorded on our balance sheet as an other noncurrent asset of $0.6 million and as an other noncurrent liability of $1.1 million , with the offsets recorded to other comprehensive income. We account for these agreements as cash flow hedges. During 2014, we entered into $250.0 million of forward-starting interest rate swap agreements to hedge against the risk of variability of future interest payments on a portion of debt we anticipated issuing in 2015. We accounted for these agreements as cash flow hedges. When we issued the $250.0 million of 4.20% notes due 2045 in first quarter 2015, we settled the associated interest rate swap agreements for a loss of $42.9 million . The loss was recorded to other comprehensive income ( $26.5 million and $16.4 million recorded in 2014 and 2015, respectively) and will be recognized into earnings as an adjustment to our periodic interest expense accruals over the life of the associated notes. This loss was also reported as a net payment on financial derivatives in the financing activities of our consolidated statements of cash flows in 2015. Commodity Derivatives Hedging Strategies Our butane blending activities produce gasoline products, and we can reasonably estimate the timing and quantities of sales of these products. We use a combination of NYMEX and forward purchase and sale contracts to help manage commodity price changes, which is intended to mitigate the risk of decline in the product margin realized from our butane blending activities that we choose to hedge. Further, certain of our other commercial operations generate petroleum products. We use NYMEX contracts to hedge against future price changes for some of these commodities. We account for the forward physical purchase and sale contracts we use in our butane blending and fractionation activities as normal purchases and sales. Forward contracts that qualify for and are elected as normal purchases and sales are accounted for using traditional accrual accounting. As of September 30, 2015 , we had commitments under these forward purchase and sale contracts as follows (in millions): Notional Value Barrels Forward purchase contracts $ 137.5 3.9 Forward sale contracts $ 0.3 — The NYMEX contracts that we enter into fall into one of three hedge categories: Hedge Category Hedge Purpose Accounting Treatment Qualifies For Hedge Accounting Treatment Cash Flow Hedge To hedge the variability in cash flows related to a forecasted transaction. The effective portion of changes in the value of the hedge is recorded to accumulated other comprehensive income/loss and reclassified to earnings when the forecasted transaction occurs. Any ineffectiveness is recognized currently in earnings. Fair Value Hedge To hedge against changes in the fair value of a recognized asset or liability. The effective portion of changes in the value of the hedge is recorded as adjustments to the asset or liability being hedged. Any ineffectiveness and amounts excluded from the assessment of hedge effectiveness is recognized currently in earnings. Does Not Qualify For Hedge Accounting Treatment Economic Hedge To effectively serve as either a fair value or a cash flow hedge; however, the derivative agreement does not qualify for hedge accounting treatment under Accounting Standards Codification ("ASC") 815, Derivatives and Hedging . Changes in the fair value of these agreements are recognized currently in earnings. During the three and nine months ended September 30, 2014 and 2015 , none of the commodity hedging contracts we entered into qualified for or were designated as cash flow hedges. Period changes in the fair value of NYMEX agreements that are accounted for as economic hedges (other than those economic hedges of our butane purchases and our pipeline product overages as discussed below), the effective portion of changes in the fair value of cash flow hedges that are reclassified from AOCL and any ineffectiveness associated with hedges related to our commodity activities are recognized currently in earnings as adjustments to product sales. We also use NYMEX contracts, which are not designated as hedges for accounting purposes, to economically hedge against changes in the price of butane we expect to purchase in the future. Period changes in the fair value of these agreements are recognized currently in earnings as adjustments to cost of product sales. We currently hold petroleum product inventories that we obtained from overages on our pipeline systems. We use NYMEX contracts that are not designated as hedges for accounting purposes to help manage price changes related to these overage inventory barrels. Period changes in the fair value of these agreements are recognized currently in earnings as adjustments to operating expense. Additionally, we hold crude oil barrels that we use for operational purposes, which we classify as noncurrent assets on our balance sheet as tank bottoms and linefill. We use NYMEX contracts to hedge against changes in the price of these crude oil barrels. We record the effective portion of the gains or losses for those contracts that qualify as fair value hedges as adjustments to the assets being hedged and the ineffective portions as well as amounts excluded from the assessment of hedge effectiveness as adjustments to other income or expense. As outlined in the table below, our open NYMEX contracts at September 30, 2015 were as follows: Type of Contract/Accounting Methodology Product Represented by the Contract and Associated Barrels Maturity Dates NYMEX - Fair Value Hedges 0.7 million barrels of crude oil Between December 2015 and November 2016 NYMEX - Economic Hedges 5.4 million barrels of refined products and crude oil (1) Between October 2015 and December 2016 NYMEX - Economic Hedges 1.2 million barrels of future purchases of butane Between October 2015 and December 2016 (1) Of the 5.4 million barrels of products we have economically hedged at September 30, 2015 , we had open agreements which swap the pricing on 1.2 million of those barrels from New York Harbor to Platts Group 3 or Platts Gulf Coast, which are the geographic locations where these barrels will be sold. Energy Commodity Derivatives Contracts and Deposits Offsets At September 30, 2015 , we had received margin deposits of $49.4 million for our NYMEX contracts with our counterparties, which were recorded as a current liability under energy commodity derivatives deposits on our consolidated balance sheet. We have the right to offset the combined fair values of our open NYMEX contracts against our margin deposits under a master netting arrangement for each counterparty; however, we have elected to present the combined fair values of our open NYMEX contracts separately from the related margin deposits on our consolidated balance sheets. Additionally, we have the right to offset the fair values of our NYMEX agreements together for each counterparty, which we have elected to do, and we report the combined net balances on our consolidated balance sheets. A schedule of the derivative amounts we have offset and the deposit amounts we could offset under a master netting arrangement are provided below as of December 31, 2014 and September 30, 2015 (in thousands): December 31, 2014 Description Gross Amounts of Recognized Assets Gross Amounts of Liabilities Offset in the Consolidated Balance Sheet Net Amounts of Assets Presented in the Consolidated Balance Sheet (1) Margin Deposit Amounts Not Offset in the Consolidated Balance Sheet Net Asset Amount (3) Energy commodity derivatives $ 106,764 $ (10,622 ) $ 96,142 $ (78,279 ) $ 17,863 September 30, 2015 Description Gross Amounts of Recognized Assets Gross Amounts of Liabilities Offset in the Consolidated Balance Sheet Net Amounts of Assets Presented in the Consolidated Balance Sheet (2) Margin Deposit Amounts Not Offset in the Consolidated Balance Sheet Net Asset Amount (3) Energy commodity derivatives $ 89,138 $ (10,695 ) $ 78,443 $ (49,447 ) $ 28,996 (1) Net amount includes energy commodity derivative contracts classified as current assets, net, of $87,151 , current liabilities of $5,413 and noncurrent assets of $14,404 . (2) Net amount includes energy commodity derivative contracts classified as current assets, net, of $49,172 and noncurrent assets of $29,271 . (3) This represents the maximum amount of loss we would incur if all of our counterparties failed to perform on their derivative contracts. Impact of Derivatives on Our Financial Statements Comprehensive Income The changes in derivative activity included in AOCL for the three and nine months ended September 30, 2014 and 2015 were as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, Derivative Gains (Losses) Included in AOCL 2014 2015 2014 2015 Beginning balance $ 9,835 $ (29,528 ) $ 13,627 $ (16,587 ) Net loss on interest rate contract cash flow hedges (1,830 ) (3,410 ) (5,443 ) (16,939 ) Reclassification of net loss (gain) on cash flow hedges to income 119 388 (60 ) 976 Ending balance $ 8,124 $ (32,550 ) $ 8,124 $ (32,550 ) Income Statement The following tables provide a summary of the effect on our consolidated statements of income for the three and nine months ended September 30, 2014 and 2015 of derivatives accounted for under ASC 815-30, Derivatives and Hedging—Cash Flow Hedges , that were designated as cash flow hedging instruments (in thousands): Three Months Ended September 30, 2014 Amount of Loss Recognized in AOCL on Derivative Location of Loss Reclassified from AOCL into Income Amount of Loss Reclassified from AOCL into Income Derivative Instrument Effective Portion Ineffective Portion Interest rate contracts $ (1,830 ) Interest expense $ (119 ) $ — Three Months Ended September 30, 2015 Amount of Loss Recognized in AOCL on Derivative Location of Loss Reclassified from AOCL into Income Amount of Loss Reclassified from AOCL into Income Derivative Instrument Effective Portion Ineffective Portion Interest rate contracts $ (3,410 ) Interest expense $ (388 ) $ — Nine Months Ended September 30, 2014 Amount of Loss Recognized in AOCL on Derivative Location of Gain (Loss) Reclassified from AOCL into Income Amount of Gain (Loss) Reclassified from AOCL into Income Derivative Instrument Effective Portion Ineffective Portion Interest rate contracts $ (5,443 ) Interest expense $ (123 ) $ 183 Nine Months Ended September 30, 2015 Amount of Loss Recognized in AOCL on Derivative Location of Loss Reclassified from AOCL into Income Amount of Loss Reclassified from AOCL into Income Derivative Instrument Effective Portion Ineffective Portion Interest rate contracts $ (16,939 ) Interest expense $ (976 ) $ — As of September 30, 2015 , the net loss estimated to be classified to interest expense over the next twelve months from AOCL is approximately $1.5 million . During 2014 and 2015 , we had open NYMEX contracts on 0.7 million barrels of crude oil that were designated as fair value hedges. Because there was no ineffectiveness recognized on these hedges, the cumulative gains at December 31, 2014 and September 30, 2015 of $13.3 million and $19.4 million , respectively, from these agreements were offset by a cumulative decrease to tank bottoms and linefill. The differential between the current spot price and forward price is excluded from the assessment of hedge effectiveness for these fair value hedges. For the three and nine months ended September 30, 2015 , we recognized a gain (loss) of $(1.7) million and $4.6 million , respectively, for the amounts we excluded from the assessment of effectiveness of these fair value hedges, which we reported as other expense/income on our consolidated statements of income. The following table provides a summary of the effect on our consolidated statements of income for the three and nine months ended September 30, 2014 and 2015 of derivatives accounted for under ASC 815, Derivatives and Hedging , that were not designated as hedging instruments (in thousands): Amount of Gain (Loss) Recognized on Derivatives Three Months Ended Nine Months Ended Location of Gain (Loss) Recognized on Derivatives September 30, September 30, Derivative Instruments 2014 2015 2014 2015 NYMEX commodity contracts Product sales revenue $ 47,545 $ 71,902 $ 33,715 $ 52,432 NYMEX commodity contracts Operating expenses 4,350 14,761 447 7,181 NYMEX commodity contracts Cost of product sales (3,913 ) (3,767 ) (3,137 ) (5,847 ) Total $ 47,982 $ 82,896 $ 31,025 $ 53,766 The impact of the derivatives in the above table was reflected as cash from operations on our consolidated statements of cash flows. Balance Sheet The following tables provide a summary of the fair value of derivatives accounted for under ASC 815, Derivatives and Hedging, which are presented on a net basis in our consolidated balance sheets, that were designated as hedging instruments as of December 31, 2014 and September 30, 2015 (in thousands): December 31, 2014 Asset Derivatives Liability Derivatives Derivative Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value NYMEX commodity contracts Energy commodity derivatives contracts, net $ 360 Energy commodity derivatives contracts, net $ — NYMEX commodity contracts Other noncurrent assets 14,404 Other noncurrent liabilities — Interest rate contracts Other current assets — Other current liabilities 26,478 Total $ 14,764 Total $ 26,478 September 30, 2015 Asset Derivatives Liability Derivatives Derivative Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value NYMEX commodity contracts Energy commodity derivatives contracts, net $ 913 Energy commodity derivatives contracts, net $ — NYMEX commodity contracts Other noncurrent assets 24,499 Other noncurrent liabilities — Interest rate contracts Other noncurrent assets 574 Other noncurrent liabilities 1,082 Total $ 25,986 Total $ 1,082 The following tables provide a summary of the fair value of derivatives accounted for under ASC 815, Derivatives and Hedging, which are presented on a net basis in our consolidated balance sheets, that were not designated as hedging instruments as of December 31, 2014 and September 30, 2015 (in thousands): December 31, 2014 Asset Derivatives Liability Derivatives Derivative Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value NYMEX commodity contracts Energy commodity derivatives contracts, net $ 92,000 Energy commodity derivatives contracts, net $ 10,622 September 30, 2015 Asset Derivatives Liability Derivatives Derivative Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value NYMEX commodity contracts Energy commodity derivatives contracts, net $ 58,685 Energy commodity derivatives contracts, net $ 10,426 NYMEX commodity contracts Other noncurrent assets 5,041 Other noncurrent liabilities 269 Total $ 63,726 Total $ 10,695 |
Commitments And Contingencies
Commitments And Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Environmental Liabilities Liabilities recognized for estimated environmental costs were $36.3 million and $31.5 million at December 31, 2014 and September 30, 2015 , respectively. We have classified environmental liabilities as current or noncurrent based on management’s estimates regarding the timing of actual payments. Management estimates that expenditures associated with these environmental liabilities will be paid over the next 10 years . Environmental expenditures recognized as a result of changes in our environmental liabilities are generally included in operating expenses on our consolidated statements of income. Environmental expenses for the three and nine months ended September 30, 2014 were $3.7 million and $4.1 million , respectively. Environmental expenses for the three and nine months ended September 30, 2015 were $1.3 million and $5.6 million , respectively. Environmental Receivables Receivables from insurance carriers and other third parties related to environmental matters were $5.1 million at December 31, 2014 , of which $1.3 million and $3.8 million were recorded to other accounts receivable and long-term receivables, respectively, on our consolidated balance sheet. Receivables from insurance carriers and other third parties related to environmental matters were $2.6 million at September 30, 2015 , of which $0.9 million and $1.7 million were recorded to other accounts receivable and long-term receivables, respectively, on our consolidated balance sheet. Other We are a party to various other claims, legal actions and complaints arising in the ordinary course of business, including without limitation those disclosed in Item 1, Legal Proceedings of Part II of this report on Form 10-Q. While the results cannot be predicted with certainty, management believes the ultimate resolution of these claims, legal actions and complaints after consideration of amounts accrued, insurance coverage or other indemnification arrangements will not have a material adverse effect on our results of operations, financial position or cash flows. |
Long-Term Incentive Plan
Long-Term Incentive Plan | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Long-Term Incentive Plan | Long-Term Incentive Plan We have a long-term incentive plan (“LTIP”) for certain of our employees and directors of our general partner. The LTIP primarily consists of phantom units and permits the grant of awards covering an aggregate payout of 9.4 million of our limited partner units. The estimated units available under the LTIP at September 30, 2015 total 1.0 million . The compensation committee of our general partner’s board of directors administers our LTIP. Our equity-based incentive compensation expense was as follows (in thousands): Three Months Ended Nine Months Ended September 30, 2014 September 30, 2014 Equity Method Liability Method Total Equity Method Liability Method Total Performance/market-based awards: 2012 awards $ 1,022 $ 651 $ 1,673 $ 3,066 $ 3,192 $ 6,258 2013 awards 1,350 558 1,908 4,726 2,411 7,137 2014 awards 1,101 — 1,101 3,233 — 3,233 Retention awards 296 — 296 1,103 — 1,103 Total $ 3,769 $ 1,209 $ 4,978 $ 12,128 $ 5,603 $ 17,731 Allocation of LTIP expense on our consolidated statements of income: G&A expense $ 4,862 $ 17,322 Operating expense 116 409 Total $ 4,978 $ 17,731 Three Months Ended Nine Months Ended September 30, 2015 September 30, 2015 Equity Method Liability Method Total Equity Method Liability Method Total Performance/market-based awards: 2013 awards $ 1,673 $ (590 ) $ 1,083 $ 6,246 $ 501 $ 6,747 2014 awards 1,497 — 1,497 3,980 — 3,980 2015 awards 1,727 — 1,727 3,687 — 3,687 Retention awards 380 — 380 812 — 812 Total $ 5,277 $ (590 ) $ 4,687 $ 14,725 $ 501 $ 15,226 Allocation of LTIP expense on our consolidated statements of income: G&A expense $ 4,643 $ 15,016 Operating expense 44 210 Total $ 4,687 $ 15,226 In February 2015, 166,189 phantom unit awards were issued pursuant to our LTIP. These grants included both performance-based and retention awards. In January 2015, we issued 354,529 limited partner units to settle unit award grants to certain employees that vested on December 31, 2014. Further, 4,461 limited partner units were issued during 2015 to settle the equity-based retainer paid to certain members of our general partner's board of directors. Basic and Diluted Net Income Per Limited Partner Unit The difference between our actual limited partner units outstanding and our weighted-average number of limited partner units outstanding used to calculate earnings per unit, is due to the impact of: (i) the phantom units issued to non-employee directors which is included in the calculation of basic and diluted weighted average units outstanding, and (ii) the weighted average effect of units actually issued during a period. The difference between the weighted-average number of limited partner units outstanding used for basic and diluted net income per unit calculations on our consolidated statements of income is primarily the dilutive effect of phantom unit grants associated with our LTIP. |
Distributions
Distributions | 9 Months Ended |
Sep. 30, 2015 | |
Distributions Made to Members or Limited Partners [Abstract] | |
Distributions | Distributions Distributions we paid during 2014 and 2015 were as follows (in thousands, except per unit amounts): Payment Date Per Unit Cash Distribution Amount Total Cash Distribution to Limited Partners 02/14/2014 $ 0.5850 $ 132,835 05/15/2014 0.6125 139,079 08/14/2014 0.6400 145,324 Through 09/30/2014 1.8375 417,238 11/14/2014 0.6675 151,568 Total $ 2.5050 $ 568,806 02/13/2015 $ 0.6950 $ 158,061 05/15/2015 0.7175 163,178 08/14/2015 0.7400 168,296 Through 09/30/2015 2.1525 489,535 11/13/2015 (1) 0.7625 173,413 Total $ 2.9150 $ 662,948 (1) Our general partner's board of directors declared this cash distribution on October 22, 2015 to be paid on November 13, 2015 to unitholders of record at the close of business on November 2, 2015 . |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Recurring Fair Value Methods and Assumptions - Financial Assets and Liabilities. We used the following methods and assumptions in estimating fair value for our financial assets and liabilities: • Energy commodity derivatives contracts . These include NYMEX futures agreements related to petroleum products. These contracts are carried at fair value on our consolidated balance sheets and are valued based on quoted prices in active markets. See Note 8 – Derivative Financial Instruments for further disclosures regarding these contracts. • Interest rate contracts. These include forward-starting interest rate swap agreements to hedge against the risk of variability of interest payments on future debt. These contracts are carried at fair value on our consolidated balance sheets and are valued based on an assumed exchange, at the end of each period, in an orderly transaction with a market participant in the market in which the financial instrument is traded. The exchange value was calculated using present value techniques on estimated future cash flows based on forward interest rate curves. See Note 8 – Derivative Financial Instruments for further disclosures regarding these contracts. • Long-term receivables. These include lease payments receivable under a direct-financing leasing arrangement and insurance receivables. Fair value was determined by estimating the present value of future cash flows using current market rates. • Debt. The fair value of our publicly traded notes was based on the prices of those notes at December 31, 2014 and September 30, 2015 ; however, where recent observable market trades were not available, prices were determined using adjustments to the last traded value for that debt issuance or by adjustments to the prices of similar debt instruments of peer entities that are actively traded. The carrying amount of borrowings, if any, under our revolving credit facility and our commercial paper program approximates fair value due to the frequent repricing of these obligations. Fair Value Measurements - Financial Assets and Liabilities The following tables summarize the carrying amounts, fair values and recurring fair value measurements recorded or disclosed as of December 31, 2014 and September 30, 2015 , based on the three levels established by ASC 820, Fair Value Measurements and Disclosures (in thousands): As of December 31, 2014 Assets (Liabilities) Fair Value Measurements using: Carrying Amount Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Energy commodity derivatives contracts – assets $ 96,142 $ 96,142 $ 96,142 $ — $ — Interest rate contracts – liabilities $ (26,478 ) $ (26,478 ) $ — $ (26,478 ) $ — Long-term receivables $ 28,611 $ 30,200 $ — $ — $ 30,200 Debt $ (2,982,895 ) $ (3,212,462 ) $ — $ (3,212,462 ) $ — As of September 30, 2015 Assets (Liabilities) Fair Value Measurements using: Carrying Amount Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Energy commodity derivatives contracts – assets $ 78,443 $ 78,443 $ 78,443 $ — $ — Interest rate contracts – liabilities $ (508 ) $ (508 ) $ — $ (508 ) $ — Long-term receivables $ 22,055 $ 21,681 $ — $ — $ 21,681 Debt $ (3,407,114 ) $ (3,420,351 ) $ — $ (3,420,351 ) $ — |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Barry R. Pearl is an independent member of our general partner's board of directors and is also a director of the general partner of Targa Resources Partners, L.P. ("Targa"). In the normal course of business, we purchase butane from subsidiaries of Targa. For the three months ended September 30, 2014 and 2015 , we made purchases of butane from subsidiaries of Targa of $0.1 million and $1.5 million , respectively. For the nine months ended September 30, 2014 and 2015 , we made purchases of butane from subsidiaries of Targa of $13.9 million and $14.3 million , respectively. These purchases were based on the then-current index prices. We had recognized payables to Targa of $0.9 million and $1.0 million at December 31, 2014 and September 30, 2015 , respectively. Stacy P. Methvin was elected as an independent member of our general partner's board of directors on April 23, 2015 and is also a director of one of our customers. We received tariff revenue of $4.1 million and $6.7 million for the three months ended September 30, 2015 and for the period of April 23, 2015 through September 30, 2015 , respectively, and have recorded a $1.3 million receivable from this customer at September 30, 2015 . The tariff revenue we recognized from this customer was in the normal course of business, with rates determined in accordance with published tariffs. See Note 4 – Investments in Non-Controlled Entities for a discussion of affiliate joint venture transactions we account for under the equity method. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Recognizable events No recognizable events occurred subsequent to September 30, 2015 . Non-recognizable events Cash Distribution. In October 2015, our general partner's board of directors declared a quarterly distribution of $0.7625 per unit to be paid on November 13, 2015 to unitholders of record at the close of business on November 2, 2015 . The total cash distributions expected to be paid under this declaration are approximately $173.4 million . Credit Facilities . On October 27, 2015, we entered into a $1.0 billion amended and restated revolving credit facility and a new $250.0 million 364 -day revolving credit facility. The $1.0 billion facility matures on October 27, 2020, while the 364 -day facility matures on October 25, 2016, subject to a term-out option. We may exercise the term-out option no later than 30 days prior to October 25, 2016 and elect to have all outstanding borrowings converted into a term loan due and payable on October 25, 2018, subject to the payment of a term-out fee. Borrowings under our new credit facilities will be unsecured and bear interest at LIBOR, plus a spread ranging from 1.00% to 1.625% based on our credit ratings and amounts outstanding. Additionally, commitment fees are assessed on undrawn amounts under our $1.0 billion facility at a rate between 0.100% and 0.275% and under our 364 -day facility at a rate between 0.080% and 0.225% , subject to our credit ratings. Our commitment fee was 0.125% on our $1.0 billion facility and 0.100% on our 364 -day facility at October 27, 2015. Debt placement costs related to our $1.0 billion facility and our 364 -day facility of $1.4 million and $0.1 million , respectively, will be amortized over the term of the credit facilities. Borrowings from the credit facilities will be used for general purposes, including capital expenditures. |
Product Sales Revenues (Tables)
Product Sales Revenues (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Product Sales Revenue [Abstract] | |
Components of Product Sales Revenues | For the three and nine months ended September 30, 2014 and 2015 , product sales revenue included the following (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2014 2015 2014 2015 Physical sale of petroleum products $ 108,320 $ 100,829 $ 555,870 $ 403,395 NYMEX contract adjustments: Change in value of NYMEX contracts that were not designated as hedging instruments associated with our butane blending and fractionation activities 47,546 71,902 33,703 52,432 Other (1 ) — 12 — Total NYMEX contract adjustments 47,545 71,902 33,715 52,432 Total product sales revenue $ 155,865 $ 172,731 $ 589,585 $ 455,827 |
Segment Disclosures (Tables)
Segment Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Business Segment Reporting Information | he results of the acquired operations subsequent to the acquisition date have been included in the accompanying consolidated financial statements and in the tables below in our refined products operating segment. Three Months Ended September 30, 2014 (in thousands) Refined Products Crude Oil Marine Storage Intersegment Eliminations Total Transportation and terminals revenue $ 237,972 $ 78,839 $ 43,706 $ — $ 360,517 Product sales revenue 155,134 — 731 — 155,865 Affiliate management fee revenue — 4,902 317 — 5,219 Total revenue 393,106 83,741 44,754 — 521,601 Operating expenses 101,206 14,375 17,691 (885 ) 132,387 Cost of product sales 91,407 — 184 — 91,591 Earnings of non-controlled entities — (959 ) (686 ) — (1,645 ) Operating margin 200,493 70,325 27,565 885 299,268 Depreciation and amortization expense 23,050 6,918 7,201 885 38,054 G&A expenses 22,600 7,635 5,142 — 35,377 Operating profit $ 154,843 $ 55,772 $ 15,222 $ — $ 225,837 Three Months Ended September 30, 2015 (in thousands) Refined Products Crude Oil Marine Storage Intersegment Eliminations Total Transportation and terminals revenue $ 259,806 $ 96,029 $ 45,109 $ — $ 400,944 Product sales revenue 171,775 — 956 — 172,731 Affiliate management fee revenue — 3,211 346 — 3,557 Total revenue 431,581 99,240 46,411 — 577,232 Operating expenses 104,622 19,479 14,700 (895 ) 137,906 Cost of product sales 85,341 — 181 — 85,522 Losses (earnings) of non-controlled entities 48 (14,906 ) (663 ) — (15,521 ) Operating margin 241,570 94,667 32,193 895 369,325 Depreciation and amortization expense 24,333 9,502 7,313 895 42,043 G&A expenses 22,238 9,818 5,556 — 37,612 Operating profit $ 194,999 $ 75,347 $ 19,324 $ — $ 289,670 Nine Months Ended September 30, 2014 (in thousands) Refined Products Crude Oil Marine Storage Intersegment Eliminations Total Transportation and terminals revenue $ 680,697 $ 226,298 $ 124,727 $ — $ 1,031,722 Product sales revenue 585,178 — 4,407 — 589,585 Affiliate management fee revenue — 14,399 947 — 15,346 Total revenue 1,265,875 240,697 130,081 — 1,636,653 Operating expenses 249,665 35,300 48,321 (2,528 ) 330,758 Cost of product sales 397,980 — 754 — 398,734 Earnings of non-controlled entities — (1,667 ) (2,399 ) — (4,066 ) Operating margin 618,230 207,064 83,405 2,528 911,227 Depreciation and amortization expense 78,305 20,106 21,523 2,528 122,462 G&A expenses 70,993 21,326 17,302 — 109,621 Operating profit $ 468,932 $ 165,632 $ 44,580 $ — $ 679,144 Nine Months Ended September 30, 2015 (in thousands) Refined Products Crude Oil Marine Storage Intersegment Eliminations Total Transportation and terminals revenue $ 710,294 $ 278,345 $ 131,921 $ — $ 1,120,560 Product sales revenue 453,737 — 2,090 — 455,827 Affiliate management fee revenue — 9,449 1,029 — 10,478 Total revenue 1,164,031 287,794 135,040 — 1,586,865 Operating expenses 275,403 49,354 45,916 (2,839 ) 367,834 Cost of product sales 315,301 — 907 — 316,208 Losses (earnings) of non-controlled entities 146 (47,735 ) (2,064 ) — (49,653 ) Operating margin 573,181 286,175 90,281 2,839 952,476 Depreciation and amortization expense 71,742 25,995 23,604 2,839 124,180 G&A expenses 68,730 26,935 15,387 — 111,052 Operating profit $ 432,709 $ 233,245 $ 51,290 $ — $ 717,244 |
Investments in Non-Controlled23
Investments in Non-Controlled Entities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Our investments in non-controlled entities at September 30, 2015 were comprised of: Entity Ownership Interest BridgeTex Pipeline Company, LLC ("BridgeTex") 50% Double Eagle Pipeline LLC ("Double Eagle") 50% Osage Pipe Line Company, LLC ("Osage") 50% Powder Springs Logistics, LLC ("Powder Springs") 50% Saddlehorn Pipeline Company, LLC ("Saddlehorn") 40% Seabrook Logistics, LLC ("Seabrook") 50% Texas Frontera, LLC ("Texas Frontera") 50% The management fees we have recognized or will recognize from BridgeTex, Osage, Powder Springs, Saddlehorn, Seabrook and Texas Frontera are or will be reported as affiliate management fee revenue on our consolidated statements of income. At December 31, 2014 and September 30, 2015 , we recognized liabilities of $2.2 million and $0.5 million , respectively, to BridgeTex primarily for pre-paid construction management fees. For the three and nine months ended September 30, 2015 , we recognized pipeline capacity lease revenue from BridgeTex of $8.9 million and $25.8 million , respectively, which we included in transportation and terminals revenue on our consolidated statements of income. We recognized a $2.6 million receivable from BridgeTex at December 31, 2014 . There was no receivable at September 30, 2015 . In third quarter 2015, we purchased surplus pipe from BridgeTex for the amount of $0.6 million . We sold a portion of the pipe purchased from BridgeTex to Saddlehorn for $0.2 million . We recognized throughput revenue from Double Eagle for the three months ended September 30, 2014 and 2015 of $0.7 million and $0.8 million , respectively, and for the nine months ended September 30, 2014 and 2015 of $2.0 million and $2.6 million , respectively, which we included in transportation and terminals revenue. At December 31, 2014 and September 30, 2015 , respectively, we recognized a $0.3 million trade accounts receivable from Double Eagle. The financial results from Texas Frontera are included in our marine storage segment, the financial results from BridgeTex, Double Eagle, Osage, Saddlehorn and Seabrook are included in our crude oil segment and the financial results from Powder Springs are included in our refined products segment as earnings/losses of non-controlled entities. A summary of our investments in non-controlled entities follows (in thousands): BridgeTex All Others Consolidated Investments at December 31, 2014 $ 489,348 $ 124,519 $ 613,867 Additional investment 16,608 130,017 146,625 Earnings of non-controlled entities: Proportionate share of earnings 45,903 5,842 51,745 Amortization of excess investment and capitalized interest (1,529 ) (563 ) (2,092 ) Earnings of non-controlled entities 44,374 5,279 49,653 Less: Distributions of earnings from investments in non-controlled entities 44,374 2,862 47,236 Distributions in excess of earnings of non-controlled entities 9,341 — 9,341 Investments at September 30, 2015 $ 496,615 $ 256,953 $ 753,568 Summarized financial information of our non-controlled entities for the three and nine months ended September 30, 2014 and 2015 follows (in thousands): Three Months Ended September 30, 2014 Three Months Ended September 30, 2015 BridgeTex All Others Consolidated BridgeTex All Others Consolidated Revenue $ 428 $ 8,882 $ 9,310 $ 47,555 $ 12,530 $ 60,085 Net income $ 297 $ 3,370 $ 3,667 $ 28,150 $ 4,151 $ 32,301 Nine Months Ended September 30, 2014 Nine Months Ended September 30, 2015 BridgeTex All Others Consolidated BridgeTex All Others Consolidated Revenue $ 428 $ 27,346 $ 27,774 $ 146,320 $ 33,677 $ 179,997 Net income $ 17 $ 9,241 $ 9,258 $ 91,806 $ 11,525 $ 103,331 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory at December 31, 2014 and September 30, 2015 was as follows (in thousands): December 31, 2014 September 30, Refined products $ 67,055 $ 27,864 Liquefied petroleum gases 37,642 42,984 Transmix 36,867 28,608 Crude oil 10,015 29,626 Additives 6,183 6,099 Total inventory $ 157,762 $ 135,181 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule Of Consolidated Net Periodic Benefit Costs | The following tables present our consolidated net periodic benefit costs related to the pension and postretirement benefit plans for the three and nine months ended September 30, 2014 and 2015 (in thousands): Three Months Ended Three Months Ended September 30, 2014 September 30, 2015 Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits Components of net periodic benefit costs: Service cost $ 3,348 $ 57 $ 4,723 $ 61 Interest cost 1,332 126 1,938 109 Expected return on plan assets (1,588 ) — (2,009 ) — Amortization of prior service credit — (928 ) — (928 ) Amortization of actuarial loss 756 229 1,577 221 Settlement cost 30 — — — Net periodic benefit cost (credit) $ 3,878 $ (516 ) $ 6,229 $ (537 ) Nine Months Ended Nine Months Ended September 30, 2014 September 30, 2015 Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits Components of net periodic benefit costs: Service cost $ 10,052 $ 171 $ 14,168 $ 183 Interest cost 5,021 379 5,815 328 Expected return on plan assets (4,775 ) — (6,028 ) — Amortization of prior service cost (credit) 33 (2,784 ) — (2,784 ) Amortization of actuarial loss 2,315 686 4,730 663 Settlement cost 1,599 — — — Net periodic benefit cost (credit) $ 14,245 $ (1,548 ) $ 18,685 $ (1,610 ) |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | The changes in AOCL related to employee benefit plan assets and benefit obligations for the three and nine months ended September 30, 2014 and 2015 were as follows (in thousands): Three Months Ended Three Months Ended September 30, 2014 September 30, 2015 Gains (Losses) Included in AOCL Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits Beginning balance $ (33,023 ) $ 1,654 $ (60,104 ) $ (3,110 ) Amortization of prior service credit — (928 ) — (928 ) Amortization of actuarial loss 756 229 1,577 221 Settlement cost 30 — — — Ending balance $ (32,237 ) $ 955 $ (58,527 ) $ (3,817 ) Nine Months Ended Nine Months Ended September 30, 2014 September 30, 2015 Gains (Losses) Included in AOCL Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits Beginning balance $ (36,184 ) $ 3,053 $ (63,257 ) $ (1,696 ) Amortization of prior service cost (credit) 33 (2,784 ) — (2,784 ) Amortization of actuarial loss 2,315 686 4,730 663 Settlement cost 1,599 — — — Ending balance $ (32,237 ) $ 955 $ (58,527 ) $ (3,817 ) |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Consolidated Debt | Consolidated debt at December 31, 2014 and September 30, 2015 was as follows (in thousands, except as otherwise noted): December 31, 2014 September 30, Weighted-Average Interest Rate for the Nine Months Ended September 30, 2015 (1) Commercial paper (2) $ 296,942 $ 226,966 0.5% $250.0 million of 5.65% Notes due 2016 250,758 250,440 5.7% $250.0 million of 6.40% Notes due 2018 257,280 255,731 5.4% $550.0 million of 6.55% Notes due 2019 567,868 565,064 5.7% $550.0 million of 4.25% Notes due 2021 556,304 555,601 4.0% $250.0 million of 3.20% Notes due 2025 (2) — 249,694 3.2% $250.0 million of 6.40% Notes due 2037 249,017 249,031 6.4% $250.0 million of 4.20% Notes due 2042 248,406 248,429 4.2% $550.0 million of 5.15% Notes due 2043 556,320 556,245 5.1% $250.0 million of 4.20% Notes due 2045 (2) — 249,913 4.6% Total debt $ 2,982,895 $ 3,407,114 4.7% (1) Weighted-average interest rate includes the amortization/accretion of discounts, premiums and gains/losses realized on historical cash flow and fair value hedges recognized as interest expense. (2) These borrowings were outstanding for only a portion of the nine -month period ending September 30, 2015 . The weighted-average interest rate for these borrowings was calculated based on the number of days the borrowings were outstanding during the noted period. |
Derivative Financial Instrume27
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule Of Forward Purchase And Sales Contracts | As of September 30, 2015 , we had commitments under these forward purchase and sale contracts as follows (in millions): Notional Value Barrels Forward purchase contracts $ 137.5 3.9 Forward sale contracts $ 0.3 — |
Schedule Of NYMEX Contracts And Butane Price Swap Purchase Agreements | As outlined in the table below, our open NYMEX contracts at September 30, 2015 were as follows: Type of Contract/Accounting Methodology Product Represented by the Contract and Associated Barrels Maturity Dates NYMEX - Fair Value Hedges 0.7 million barrels of crude oil Between December 2015 and November 2016 NYMEX - Economic Hedges 5.4 million barrels of refined products and crude oil (1) Between October 2015 and December 2016 NYMEX - Economic Hedges 1.2 million barrels of future purchases of butane Between October 2015 and December 2016 (1) Of the 5.4 million barrels of products we have economically hedged at September 30, 2015 , we had open agreements which swap the pricing on 1.2 million of those barrels from New York Harbor to Platts Group 3 or Platts Gulf Coast, which are the geographic locations where these barrels will be sold. |
Derivatives and Offset Amounts [Table Text Block] | A schedule of the derivative amounts we have offset and the deposit amounts we could offset under a master netting arrangement are provided below as of December 31, 2014 and September 30, 2015 (in thousands): December 31, 2014 Description Gross Amounts of Recognized Assets Gross Amounts of Liabilities Offset in the Consolidated Balance Sheet Net Amounts of Assets Presented in the Consolidated Balance Sheet (1) Margin Deposit Amounts Not Offset in the Consolidated Balance Sheet Net Asset Amount (3) Energy commodity derivatives $ 106,764 $ (10,622 ) $ 96,142 $ (78,279 ) $ 17,863 September 30, 2015 Description Gross Amounts of Recognized Assets Gross Amounts of Liabilities Offset in the Consolidated Balance Sheet Net Amounts of Assets Presented in the Consolidated Balance Sheet (2) Margin Deposit Amounts Not Offset in the Consolidated Balance Sheet Net Asset Amount (3) Energy commodity derivatives $ 89,138 $ (10,695 ) $ 78,443 $ (49,447 ) $ 28,996 (1) Net amount includes energy commodity derivative contracts classified as current assets, net, of $87,151 , current liabilities of $5,413 and noncurrent assets of $14,404 . (2) Net amount includes energy commodity derivative contracts classified as current assets, net, of $49,172 and noncurrent assets of $29,271 . (3) This represents the maximum amount of loss we would incur if all of our counterparties failed to perform on their derivative contracts. |
Derivative Gains Included In Accumulated Other Comprehensive Loss (AOCL) | The changes in derivative activity included in AOCL for the three and nine months ended September 30, 2014 and 2015 were as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, Derivative Gains (Losses) Included in AOCL 2014 2015 2014 2015 Beginning balance $ 9,835 $ (29,528 ) $ 13,627 $ (16,587 ) Net loss on interest rate contract cash flow hedges (1,830 ) (3,410 ) (5,443 ) (16,939 ) Reclassification of net loss (gain) on cash flow hedges to income 119 388 (60 ) 976 Ending balance $ 8,124 $ (32,550 ) $ 8,124 $ (32,550 ) |
Derivatives And Hedging-Cash Flow Hedges | The following tables provide a summary of the effect on our consolidated statements of income for the three and nine months ended September 30, 2014 and 2015 of derivatives accounted for under ASC 815-30, Derivatives and Hedging—Cash Flow Hedges , that were designated as cash flow hedging instruments (in thousands): Three Months Ended September 30, 2014 Amount of Loss Recognized in AOCL on Derivative Location of Loss Reclassified from AOCL into Income Amount of Loss Reclassified from AOCL into Income Derivative Instrument Effective Portion Ineffective Portion Interest rate contracts $ (1,830 ) Interest expense $ (119 ) $ — Three Months Ended September 30, 2015 Amount of Loss Recognized in AOCL on Derivative Location of Loss Reclassified from AOCL into Income Amount of Loss Reclassified from AOCL into Income Derivative Instrument Effective Portion Ineffective Portion Interest rate contracts $ (3,410 ) Interest expense $ (388 ) $ — |
Derivatives And Hedging-Overall-Subsequent Measurement | The following table provides a summary of the effect on our consolidated statements of income for the three and nine months ended September 30, 2014 and 2015 of derivatives accounted for under ASC 815, Derivatives and Hedging , that were not designated as hedging instruments (in thousands): Amount of Gain (Loss) Recognized on Derivatives Three Months Ended Nine Months Ended Location of Gain (Loss) Recognized on Derivatives September 30, September 30, Derivative Instruments 2014 2015 2014 2015 NYMEX commodity contracts Product sales revenue $ 47,545 $ 71,902 $ 33,715 $ 52,432 NYMEX commodity contracts Operating expenses 4,350 14,761 447 7,181 NYMEX commodity contracts Cost of product sales (3,913 ) (3,767 ) (3,137 ) (5,847 ) Total $ 47,982 $ 82,896 $ 31,025 $ 53,766 |
Derivatives And Hedging-Designated | The following tables provide a summary of the fair value of derivatives accounted for under ASC 815, Derivatives and Hedging, which are presented on a net basis in our consolidated balance sheets, that were designated as hedging instruments as of December 31, 2014 and September 30, 2015 (in thousands): December 31, 2014 Asset Derivatives Liability Derivatives Derivative Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value NYMEX commodity contracts Energy commodity derivatives contracts, net $ 360 Energy commodity derivatives contracts, net $ — NYMEX commodity contracts Other noncurrent assets 14,404 Other noncurrent liabilities — Interest rate contracts Other current assets — Other current liabilities 26,478 Total $ 14,764 Total $ 26,478 September 30, 2015 Asset Derivatives Liability Derivatives Derivative Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value NYMEX commodity contracts Energy commodity derivatives contracts, net $ 913 Energy commodity derivatives contracts, net $ — NYMEX commodity contracts Other noncurrent assets 24,499 Other noncurrent liabilities — Interest rate contracts Other noncurrent assets 574 Other noncurrent liabilities 1,082 Total $ 25,986 Total $ 1,082 The following tables provide a summary of the fair value of derivatives accounted for under ASC 815, Derivatives and Hedging, which are presented on a net basis in our consolidated balance sheets, that were not designated as hedging instruments as of December 31, 2014 and September 30, 2015 (in thousands): December 31, 2014 Asset Derivatives Liability Derivatives Derivative Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value NYMEX commodity contracts Energy commodity derivatives contracts, net $ 92,000 Energy commodity derivatives contracts, net $ 10,622 September 30, 2015 Asset Derivatives Liability Derivatives Derivative Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value NYMEX commodity contracts Energy commodity derivatives contracts, net $ 58,685 Energy commodity derivatives contracts, net $ 10,426 NYMEX commodity contracts Other noncurrent assets 5,041 Other noncurrent liabilities 269 Total $ 63,726 Total $ 10,695 |
Long-Term Incentive Plan (Table
Long-Term Incentive Plan (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity-Based Incentive Compensation Expense | Our equity-based incentive compensation expense was as follows (in thousands): Three Months Ended Nine Months Ended September 30, 2014 September 30, 2014 Equity Method Liability Method Total Equity Method Liability Method Total Performance/market-based awards: 2012 awards $ 1,022 $ 651 $ 1,673 $ 3,066 $ 3,192 $ 6,258 2013 awards 1,350 558 1,908 4,726 2,411 7,137 2014 awards 1,101 — 1,101 3,233 — 3,233 Retention awards 296 — 296 1,103 — 1,103 Total $ 3,769 $ 1,209 $ 4,978 $ 12,128 $ 5,603 $ 17,731 Allocation of LTIP expense on our consolidated statements of income: G&A expense $ 4,862 $ 17,322 Operating expense 116 409 Total $ 4,978 $ 17,731 Three Months Ended Nine Months Ended September 30, 2015 September 30, 2015 Equity Method Liability Method Total Equity Method Liability Method Total Performance/market-based awards: 2013 awards $ 1,673 $ (590 ) $ 1,083 $ 6,246 $ 501 $ 6,747 2014 awards 1,497 — 1,497 3,980 — 3,980 2015 awards 1,727 — 1,727 3,687 — 3,687 Retention awards 380 — 380 812 — 812 Total $ 5,277 $ (590 ) $ 4,687 $ 14,725 $ 501 $ 15,226 Allocation of LTIP expense on our consolidated statements of income: G&A expense $ 4,643 $ 15,016 Operating expense 44 210 Total $ 4,687 $ 15,226 |
Distributions (Tables)
Distributions (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Distributions Made to Members or Limited Partners [Abstract] | |
Schedule Of Distributions | Distributions we paid during 2014 and 2015 were as follows (in thousands, except per unit amounts): Payment Date Per Unit Cash Distribution Amount Total Cash Distribution to Limited Partners 02/14/2014 $ 0.5850 $ 132,835 05/15/2014 0.6125 139,079 08/14/2014 0.6400 145,324 Through 09/30/2014 1.8375 417,238 11/14/2014 0.6675 151,568 Total $ 2.5050 $ 568,806 02/13/2015 $ 0.6950 $ 158,061 05/15/2015 0.7175 163,178 08/14/2015 0.7400 168,296 Through 09/30/2015 2.1525 489,535 11/13/2015 (1) 0.7625 173,413 Total $ 2.9150 $ 662,948 (1) Our general partner's board of directors declared this cash distribution on October 22, 2015 to be paid on November 13, 2015 to unitholders of record at the close of business on November 2, 2015 . |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables summarize the carrying amounts, fair values and recurring fair value measurements recorded or disclosed as of December 31, 2014 and September 30, 2015 , based on the three levels established by ASC 820, Fair Value Measurements and Disclosures (in thousands): As of December 31, 2014 Assets (Liabilities) Fair Value Measurements using: Carrying Amount Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Energy commodity derivatives contracts – assets $ 96,142 $ 96,142 $ 96,142 $ — $ — Interest rate contracts – liabilities $ (26,478 ) $ (26,478 ) $ — $ (26,478 ) $ — Long-term receivables $ 28,611 $ 30,200 $ — $ — $ 30,200 Debt $ (2,982,895 ) $ (3,212,462 ) $ — $ (3,212,462 ) $ — As of September 30, 2015 Assets (Liabilities) Fair Value Measurements using: Carrying Amount Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Energy commodity derivatives contracts – assets $ 78,443 $ 78,443 $ 78,443 $ — $ — Interest rate contracts – liabilities $ (508 ) $ (508 ) $ — $ (508 ) $ — Long-term receivables $ 22,055 $ 21,681 $ — $ — $ 21,681 Debt $ (3,407,114 ) $ (3,420,351 ) $ — $ (3,420,351 ) $ — |
Organization, Description of 31
Organization, Description of Business and Basis of Presentation (Narrative) (Details) bbl in Millions | Sep. 30, 2015Terminalbblmi |
Refined Products [Member] | |
Organization and Description of Business [Line Items] | |
Number of Pipeline Terminals | 52 |
Number of Independent Terminals | 28 |
Refined Products [Member] | Refined Products Transportation Services [Member] | |
Organization and Description of Business [Line Items] | |
Pipeline Length | mi | 9,500 |
Refined Products [Member] | Ammonia Transportation Services [Member] | |
Organization and Description of Business [Line Items] | |
Pipeline Length | mi | 1,100 |
Crude Oil Pipeline and Terminals [Member] | |
Organization and Description of Business [Line Items] | |
Pipeline Length | mi | 1,600 |
Storage Capacity | bbl | 21 |
Leaseable Storage Capacity | bbl | 13 |
Marine Storage [Member] | |
Organization and Description of Business [Line Items] | |
Number of Independent Terminals | 5 |
Storage Capacity | bbl | 26 |
Product Sales Revenues (Compone
Product Sales Revenues (Components Of Product Sales Revenues) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Product Sales Revenue [Line Items] | ||||
Physical sale of petroleum products | $ 100,829 | $ 108,320 | $ 403,395 | $ 555,870 |
NYMEX Adjustments Included in Product Sales | 71,902 | 47,545 | 52,432 | 33,715 |
Sales Revenue from Energy Commodities and Services | 172,731 | 155,865 | 455,827 | 589,585 |
Other Product Sale Revenue [Member] | ||||
Product Sales Revenue [Line Items] | ||||
NYMEX Adjustments Included in Product Sales | 0 | (1) | 0 | 12 |
Butane Blending And Fractionation Activities [Member] | ||||
Product Sales Revenue [Line Items] | ||||
NYMEX Adjustments Included in Product Sales | $ 71,902 | $ 47,546 | $ 52,432 | $ 33,703 |
Segment Disclosures (Schedule O
Segment Disclosures (Schedule Of Business Segment Reporting Information) (Details) - USD ($) $ in Thousands | May. 01, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 |
Segment Reporting Information [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 54,678 | $ 0 | |||
Transportation and terminals revenue | $ 400,944 | $ 360,517 | 1,120,560 | 1,031,722 | |
Product sales revenue | 172,731 | 155,865 | 455,827 | 589,585 | |
Affiliate management fee revenue | 3,557 | 5,219 | 10,478 | 15,346 | |
Total revenue | 577,232 | 521,601 | 1,586,865 | 1,636,653 | |
Operating expenses | 137,906 | 132,387 | 367,834 | 330,758 | |
Cost of product sales | 85,522 | 91,591 | 316,208 | 398,734 | |
Earnings of non-controlled entities | (15,521) | (1,645) | (49,653) | (4,066) | |
Operating margin | 369,325 | 299,268 | 952,476 | 911,227 | |
Depreciation and amortization expense | 42,043 | 38,054 | 124,180 | 122,462 | |
G&A expenses | 37,612 | 35,377 | 111,052 | 109,621 | |
Operating profit | 289,670 | 225,837 | 717,244 | 679,144 | |
Operating Segments [Member] | Refined Products [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 54,678 | ||||
Transportation and terminals revenue | 259,806 | 237,972 | 710,294 | 680,697 | |
Product sales revenue | 171,775 | 155,134 | 453,737 | 585,178 | |
Affiliate management fee revenue | 0 | 0 | 0 | 0 | |
Total revenue | 431,581 | 393,106 | 1,164,031 | 1,265,875 | |
Operating expenses | 104,622 | 101,206 | 275,403 | 249,665 | |
Cost of product sales | 85,341 | 91,407 | 315,301 | 397,980 | |
Earnings of non-controlled entities | 48 | 0 | 146 | 0 | |
Operating margin | 241,570 | 200,493 | 573,181 | 618,230 | |
Depreciation and amortization expense | 24,333 | 23,050 | 71,742 | 78,305 | |
G&A expenses | 22,238 | 22,600 | 68,730 | 70,993 | |
Operating profit | 194,999 | 154,843 | 432,709 | 468,932 | |
Operating Segments [Member] | Crude Oil Pipeline and Terminals [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Transportation and terminals revenue | 96,029 | 78,839 | 278,345 | 226,298 | |
Product sales revenue | 0 | 0 | 0 | 0 | |
Affiliate management fee revenue | 3,211 | 4,902 | 9,449 | 14,399 | |
Total revenue | 99,240 | 83,741 | 287,794 | 240,697 | |
Operating expenses | 19,479 | 14,375 | 49,354 | 35,300 | |
Cost of product sales | 0 | 0 | 0 | 0 | |
Earnings of non-controlled entities | (14,906) | (959) | (47,735) | (1,667) | |
Operating margin | 94,667 | 70,325 | 286,175 | 207,064 | |
Depreciation and amortization expense | 9,502 | 6,918 | 25,995 | 20,106 | |
G&A expenses | 9,818 | 7,635 | 26,935 | 21,326 | |
Operating profit | 75,347 | 55,772 | 233,245 | 165,632 | |
Operating Segments [Member] | Marine Storage [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Transportation and terminals revenue | 45,109 | 43,706 | 131,921 | 124,727 | |
Product sales revenue | 956 | 731 | 2,090 | 4,407 | |
Affiliate management fee revenue | 346 | 317 | 1,029 | 947 | |
Total revenue | 46,411 | 44,754 | 135,040 | 130,081 | |
Operating expenses | 14,700 | 17,691 | 45,916 | 48,321 | |
Cost of product sales | 181 | 184 | 907 | 754 | |
Earnings of non-controlled entities | (663) | (686) | (2,064) | (2,399) | |
Operating margin | 32,193 | 27,565 | 90,281 | 83,405 | |
Depreciation and amortization expense | 7,313 | 7,201 | 23,604 | 21,523 | |
G&A expenses | 5,556 | 5,142 | 15,387 | 17,302 | |
Operating profit | 19,324 | 15,222 | 51,290 | 44,580 | |
Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Transportation and terminals revenue | 0 | 0 | 0 | 0 | |
Product sales revenue | 0 | 0 | 0 | 0 | |
Affiliate management fee revenue | 0 | 0 | 0 | 0 | |
Total revenue | 0 | 0 | 0 | 0 | |
Operating expenses | (895) | (885) | (2,839) | (2,528) | |
Cost of product sales | 0 | 0 | 0 | 0 | |
Earnings of non-controlled entities | 0 | 0 | 0 | 0 | |
Operating margin | 895 | 885 | 2,839 | 2,528 | |
Depreciation and amortization expense | 895 | 885 | 2,839 | 2,528 | |
G&A expenses | 0 | 0 | 0 | 0 | |
Operating profit | $ 0 | $ 0 | $ 0 | $ 0 |
Investments in Non-Controlled34
Investments in Non-Controlled Entities (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Change in Equity Method Investments [Roll Forward] | |||||
Investments at December 31, 2014 | $ 613,867,000 | ||||
Additional Investment in NonControlled Entities | 146,625,000 | ||||
Proportionate share of earnings | 51,745,000 | ||||
Amortization of excess investment and capitalized interest | (2,092,000) | ||||
Earnings of non-controlled entities | $ 15,521,000 | $ 1,645,000 | 49,653,000 | $ 4,066,000 | |
Distributions of earnings from investments in non-controlled entities | 47,236,000 | 2,398,000 | |||
Distributions in excess of earnings of non-controlled entities | 9,341,000 | 3,918,000 | |||
Investments at September 30, 2015 | 753,568,000 | 753,568,000 | |||
Equity Method Investment, Summarized Financial Information, Revenue | 60,085,000 | 9,310,000 | 179,997,000 | 27,774,000 | |
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | $ 32,301,000 | 3,667,000 | $ 103,331,000 | 9,258,000 | |
Texas Frontera Llc [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in equity method investment | 50.00% | 50.00% | |||
Powder Springs Logistics, LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in equity method investment | 50.00% | 50.00% | |||
Saddlehorn Pipeline Company [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in equity method investment | 40.00% | 40.00% | |||
Seabrook Logistics, LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in equity method investment | 50.00% | 50.00% | |||
Osage Pipeline Co [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in equity method investment | 50.00% | 50.00% | |||
Double Eagle Pipeline Llc [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in equity method investment | 50.00% | 50.00% | |||
BridgeTex [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in equity method investment | 50.00% | 50.00% | |||
Change in Equity Method Investments [Roll Forward] | |||||
Investments at December 31, 2014 | $ 489,348,000 | ||||
Additional Investment in NonControlled Entities | 16,608,000 | ||||
Proportionate share of earnings | 45,903,000 | ||||
Amortization of excess investment and capitalized interest | (1,529,000) | ||||
Earnings of non-controlled entities | 44,374,000 | ||||
Distributions of earnings from investments in non-controlled entities | 44,374,000 | ||||
Distributions in excess of earnings of non-controlled entities | 9,341,000 | ||||
Investments at September 30, 2015 | $ 496,615,000 | 496,615,000 | |||
Equity Method Investment, Summarized Financial Information, Revenue | 47,555,000 | 428,000 | 146,320,000 | 428,000 | |
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | 28,150,000 | 297,000 | 91,806,000 | 17,000 | |
All Other Equity Investments [Member] | |||||
Change in Equity Method Investments [Roll Forward] | |||||
Investments at December 31, 2014 | 124,519,000 | ||||
Additional Investment in NonControlled Entities | 130,017,000 | ||||
Proportionate share of earnings | 5,842,000 | ||||
Amortization of excess investment and capitalized interest | (563,000) | ||||
Earnings of non-controlled entities | 5,279,000 | ||||
Distributions of earnings from investments in non-controlled entities | 2,862,000 | ||||
Distributions in excess of earnings of non-controlled entities | 0 | ||||
Investments at September 30, 2015 | 256,953,000 | 256,953,000 | |||
Equity Method Investment, Summarized Financial Information, Revenue | 12,530,000 | 8,882,000 | 33,677,000 | 27,346,000 | |
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | 4,151,000 | 3,370,000 | 11,525,000 | 9,241,000 | |
Equity Method Investee [Member] | Saddlehorn Pipeline Company [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Related Party Transaction, Amounts of Transaction | (200,000) | ||||
Equity Method Investee [Member] | Double Eagle Pipeline Llc [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Related Party Transaction, Other Revenues from Transactions with Related Party | 800,000 | $ 700,000 | 2,600,000 | $ 2,000,000 | |
Accounts Receivable, Related Parties, Current | 300,000 | 300,000 | $ 300,000 | ||
Equity Method Investee [Member] | BridgeTex [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Accounts Payable, Related Parties, Current | 500,000 | 500,000 | 2,200,000 | ||
Related Party Transaction, Other Revenues from Transactions with Related Party | 8,900,000 | 25,800,000 | |||
Accounts Receivable, Related Parties, Current | 0 | $ 0 | $ 2,600,000 | ||
Related Party Transaction, Amounts of Transaction | $ 600,000 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Refined products | $ 27,864 | $ 67,055 |
Liquefied petroleum gases | 42,984 | 37,642 |
Transmix | 28,608 | 36,867 |
Crude oil | 29,626 | 10,015 |
Additives | 6,099 | 6,183 |
Total inventory | $ 135,181 | $ 157,762 |
Schedule Of Consolidated Net Pe
Schedule Of Consolidated Net Periodic Benefit Costs (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)pension_plan | Sep. 30, 2014USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of Union Pension Plans | pension_plan | 2 | |||
Defined Contribution Plan, Cost Recognized | $ 1,800 | $ 1,700 | $ 6,800 | $ 6,300 |
Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | 21,100 | |||
Components of net periodic benefit costs: | ||||
Service cost | 4,723 | 3,348 | 14,168 | 10,052 |
Interest cost | 1,938 | 1,332 | 5,815 | 5,021 |
Expected return on plan assets | (2,009) | (1,588) | (6,028) | (4,775) |
Amortization of prior service credit | 0 | 0 | 0 | 33 |
Amortization of actuarial loss | 1,577 | 756 | 4,730 | 2,315 |
Settlement cost | 0 | 30 | 0 | 1,599 |
Net periodic benefit cost (credit) | 6,229 | 3,878 | 18,685 | 14,245 |
Other Postretirement Benefit Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | 1,200 | |||
Components of net periodic benefit costs: | ||||
Service cost | 61 | 57 | 183 | 171 |
Interest cost | 109 | 126 | 328 | 379 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service credit | (928) | (928) | (2,784) | (2,784) |
Amortization of actuarial loss | 221 | 229 | 663 | 686 |
Settlement cost | 0 | 0 | 0 | 0 |
Net periodic benefit cost (credit) | $ (537) | $ (516) | $ (1,610) | $ (1,548) |
Employee Benefit Plans Schedule
Employee Benefit Plans Schedule of Amounts Recognized in Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Changes in AOCL [Roll Forward] | |||||
Accumulated other comprehensive loss (Beginning Bal) | $ (81,540) | ||||
Amortization of prior service credit | [1] | $ (928) | $ (928) | (2,784) | $ (2,751) |
Amortization of actuarial loss | [1] | 1,798 | 985 | 5,393 | 3,001 |
Settlement cost | [1] | 0 | 30 | 0 | 1,599 |
Accumulated other comprehensive loss (Ending Bal) | (94,894) | (94,894) | |||
Pension Plan [Member] | |||||
Changes in AOCL [Roll Forward] | |||||
Accumulated other comprehensive loss (Beginning Bal) | (60,104) | (33,023) | (63,257) | (36,184) | |
Amortization of prior service credit | 0 | 0 | 0 | 33 | |
Amortization of actuarial loss | 1,577 | 756 | 4,730 | 2,315 | |
Settlement cost | 0 | 30 | 0 | 1,599 | |
Accumulated other comprehensive loss (Ending Bal) | (58,527) | (32,237) | (58,527) | (32,237) | |
Other Postretirement Benefit Plan [Member] | |||||
Changes in AOCL [Roll Forward] | |||||
Accumulated other comprehensive loss (Beginning Bal) | (3,110) | 1,654 | (1,696) | 3,053 | |
Amortization of prior service credit | (928) | (928) | (2,784) | (2,784) | |
Amortization of actuarial loss | 221 | 229 | 663 | 686 | |
Settlement cost | 0 | 0 | 0 | 0 | |
Accumulated other comprehensive loss (Ending Bal) | $ (3,817) | $ 955 | $ (3,817) | $ 955 | |
[1] | See Note 6–Employee Benefit Plans for details of the changes in employee benefit plan assets and benefit obligations recognized in AOCL. |
Debt (Consolidated Debt) (Detai
Debt (Consolidated Debt) (Details) - USD ($) | Sep. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||||
Total debt | $ 3,407,114,000 | $ 2,982,895,000 | ||
Weighted-Average Interest Rate | [1] | 4.70% | ||
Debt Instrument, Face Amount | $ 3,400,000,000 | 2,900,000,000 | ||
Senior Notes [Member] | 5.65% Notes Due 2016 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | $ 250,440,000 | 250,758,000 | ||
Weighted-Average Interest Rate | [1] | 5.70% | ||
Debt Instrument, Face Amount | $ 250,000,000 | $ 250,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.65% | 5.65% | ||
Senior Notes [Member] | 6.40% Notes Due 2018 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | $ 255,731,000 | $ 257,280,000 | ||
Weighted-Average Interest Rate | [1] | 5.40% | ||
Debt Instrument, Face Amount | $ 250,000,000 | $ 250,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.40% | 6.40% | ||
Senior Notes [Member] | 6.55% Notes Due 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | $ 565,064,000 | $ 567,868,000 | ||
Weighted-Average Interest Rate | [1] | 5.70% | ||
Debt Instrument, Face Amount | $ 550,000,000 | $ 550,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.55% | 6.55% | ||
Senior Notes [Member] | 4.25% Notes Due 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | $ 555,601,000 | $ 556,304,000 | ||
Weighted-Average Interest Rate | [1] | 4.00% | ||
Debt Instrument, Face Amount | $ 550,000,000 | $ 550,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.25% | 4.25% | ||
Senior Notes [Member] | 3.20% Notes Due 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | $ 249,694,000 | $ 0 | ||
Weighted-Average Interest Rate | [1],[2] | 3.20% | ||
Debt Instrument, Face Amount | $ 250,000,000 | $ 250,000,000 | $ 0 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.20% | 3.20% | 0.00% | |
Senior Notes [Member] | 6.40% Notes Due 2037 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | $ 249,031,000 | $ 249,017,000 | ||
Weighted-Average Interest Rate | [1] | 6.40% | ||
Debt Instrument, Face Amount | $ 250,000,000 | $ 250,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.40% | 6.40% | ||
Senior Notes [Member] | 4.20% Notes Due 2042 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | $ 248,429,000 | $ 248,406,000 | ||
Weighted-Average Interest Rate | [1] | 4.20% | ||
Debt Instrument, Face Amount | $ 250,000,000 | $ 250,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.20% | 4.20% | ||
Senior Notes [Member] | 5.15% Notes Due 2043 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | $ 556,245,000 | $ 556,320,000 | ||
Weighted-Average Interest Rate | [1] | 5.10% | ||
Debt Instrument, Face Amount | $ 550,000,000 | $ 550,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.15% | 5.15% | ||
Senior Notes [Member] | 4.20% Notes Due 2045 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | $ 249,913,000 | $ 0 | ||
Weighted-Average Interest Rate | [1],[2] | 4.60% | ||
Debt Instrument, Face Amount | $ 250,000,000 | $ 250,000,000 | $ 0 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.20% | 4.20% | 0.00% | |
Commercial Paper [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt | $ 226,966,000 | $ 296,942,000 | ||
Weighted-Average Interest Rate | [1],[2] | 0.50% | ||
[1] | Weighted-average interest rate includes the amortization/accretion of discounts, premiums and gains/losses realized on historical cash flow and fair value hedges recognized as interest expense. | |||
[2] | These borrowings were outstanding for only a portion of the nine-month period ending September 30, 2015. The weighted-average interest rate for these borrowings was calculated based on the number of days the borrowings were outstanding during the noted period. |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | Oct. 31, 2015 | Mar. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 |
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 3,400,000,000 | $ 2,900,000,000 | |||
Debt placement costs | 4,754,000 | $ 2,912,000 | |||
Long-term Debt | 3,407,114,000 | 2,982,895,000 | |||
Senior Notes [Member] | 3.20% Notes Due 2025 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 250,000,000 | $ 250,000,000 | $ 0 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.20% | 3.20% | 0.00% | ||
Notes At Price | 99.871% | ||||
After Underwriting Discounts | $ 247,600,000 | ||||
Debt placement costs | 2,100,000 | ||||
Long-term Debt | $ 249,694,000 | $ 0 | |||
Senior Notes [Member] | 4.20% Notes Due 2045 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 250,000,000 | $ 250,000,000 | $ 0 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.20% | 4.20% | 0.00% | ||
Notes At Price | 99.965% | ||||
After Underwriting Discounts | $ 247,300,000 | ||||
Debt placement costs | $ 2,600,000 | ||||
Long-term Debt | $ 249,913,000 | $ 0 | |||
Revolving Credit Facility [Member] | Subsequent Event [Member] | Notes Payable to Banks [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt placement costs | $ 100,000 | ||||
Borrowing capacity | $ 250,000,000 | ||||
Unused commitment fee | 0.10% | ||||
Debt Instrument, Term | 364 days | ||||
Revolving Credit Facility [Member] | Minimum [Member] | Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||||
Revolving Credit Facility [Member] | Minimum [Member] | Subsequent Event [Member] | Notes Payable to Banks [Member] | |||||
Debt Instrument [Line Items] | |||||
Unused commitment fee | 0.08% | ||||
Revolving Credit Facility [Member] | Maximum [Member] | Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.625% | ||||
Revolving Credit Facility [Member] | Maximum [Member] | Subsequent Event [Member] | Notes Payable to Banks [Member] | |||||
Debt Instrument [Line Items] | |||||
Unused commitment fee | 0.225% | ||||
Revolving Credit Facility [Member] | Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Borrowing capacity | $ 1,000,000,000 | ||||
Unused commitment fee | 0.125% | ||||
Long-term Debt | $ 0 | ||||
Obligation for letters of credit | $ 5,600,000 | ||||
Revolving Credit Facility [Member] | Senior Notes [Member] | Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt placement costs | $ 1,400,000 | ||||
Borrowing capacity | $ 1,000,000,000 | ||||
Unused commitment fee | 0.125% | ||||
Revolving Credit Facility [Member] | Senior Notes [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||||
Unused commitment fee | 0.10% | ||||
Revolving Credit Facility [Member] | Senior Notes [Member] | Minimum [Member] | Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Unused commitment fee | 0.10% | ||||
Revolving Credit Facility [Member] | Senior Notes [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||||
Unused commitment fee | 0.28% | ||||
Revolving Credit Facility [Member] | Senior Notes [Member] | Maximum [Member] | Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Unused commitment fee | 0.275% | ||||
Commercial Paper [Member] | Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Borrowing capacity | $ 1,000,000,000 | ||||
Long-term Debt | $ 226,966,000 | $ 296,942,000 | |||
Commercial Paper [Member] | Senior Notes [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Term | 397 days |
Derivative Financial Instrume40
Derivative Financial Instruments (Narrative) (Details) bbl in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2015USD ($)bbl | Mar. 31, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)bbl | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($)bbl | ||
Derivative [Line Items] | |||||||
Debt Instrument, Face Amount | $ 3,400,000,000 | $ 3,400,000,000 | $ 2,900,000,000 | ||||
Net payment on financial derivatives | (42,908,000) | $ (3,613,000) | |||||
Net loss on cash flow hedges(1) | [1] | (3,410,000) | $ (1,830,000) | (16,939,000) | $ (5,443,000) | ||
Energy commodity derivatives deposits | 49,447,000 | 49,447,000 | 84,463,000 | ||||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | (1,500,000) | ||||||
Tank bottoms and linefill | $ 36,491,000 | $ 36,491,000 | $ 42,585,000 | ||||
Fair Value Hedging [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative, Nonmonetary Notional Amount | bbl | 0.7 | 0.7 | |||||
Fair Value Hedging [Member] | NYMEX Commodity Contracts [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative, Nonmonetary Notional Amount | bbl | 0.7 | 0.7 | 0.7 | ||||
Tank bottoms and linefill | $ (19,400,000) | $ (19,400,000) | $ (13,300,000) | ||||
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | (1,700,000) | 4,600,000 | |||||
Two Thousand Fifteen Interest Rate Swaps [Member] | Cash Flow Hedging [Member] | Interest Rate Contract [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative, Notional Amount | 150,000,000 | 150,000,000 | |||||
Derivative Asset, Fair Value, Gross Asset | 600,000 | 600,000 | |||||
Derivative Liability, Fair Value, Gross Liability | $ 1,100,000 | $ 1,100,000 | |||||
Two Thousand Fourteen Interest Rate Swaps [Member] | Cash Flow Hedging [Member] | Interest Rate Contract [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative, Notional Amount | $ 250,000,000 | ||||||
Debt Instrument, Face Amount | $ 250,000,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.20% | ||||||
Net payment on financial derivatives | $ (42,900,000) | ||||||
Net loss on cash flow hedges(1) | $ (16,400,000) | $ (26,500,000) | |||||
[1] | See Note 8–Derivative Financial Instruments for details of the amount of gain/loss recognized in accumulated other comprehensive loss ("AOCL") for derivative financial instruments and the amount of gain/loss reclassified from AOCL into income. |
Derivative Financial Instrume41
Derivative Financial Instruments (Schedule Of Forward Purchase And Sales Contracts) (Details) - Forward Contracts [Member] bbl in Millions, $ in Millions | Sep. 30, 2015USD ($)bbl |
Derivative [Line Items] | |
Forward purchase contracts, Amount | $ 137.5 |
Forward purchase contracts, Barrels | bbl | 3.9 |
Forward sale contracts, Amount | $ 0.3 |
Forward sale contracts, Barrels | bbl | 0 |
Derivative Financial Instrume42
Derivative Financial Instruments (Schedule Of NYMEX Contracts And Butane Price Swap Purchase Agreements) (Details) bbl in Millions | Sep. 30, 2015bbl | |
Fair Value Hedging [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 0.7 | |
Economic Hedges [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 5.4 | [1] |
Economic Hedges Futures [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 1.2 | |
Basis Swap [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 1.2 | |
[1] | Of the 5.4 million barrels of products we have economically hedged at September 30, 2015, we had open agreements which swap the pricing on 1.2 million of those barrels from New York Harbor to Platts Group 3 or Platts Gulf Coast, which are the geographic locations where these barrels will be sold. |
Derivative Financial Instrume43
Derivative Financial Instruments Schedule of Derivative Offset Amounts (Details) - Exchange Traded [Member] - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |||
Derivative [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | $ 89,138 | $ 106,764 | |||
Derivative Liability, Fair Value, Gross Liability | (10,695) | (10,622) | |||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 78,443 | [1] | 96,142 | [2] | |
Derivative, Collateral, Obligation to Return Cash | (49,447) | (78,279) | |||
Amount After Offset | [3] | 28,996 | 17,863 | ||
Other Current Liabilities [Member] | |||||
Derivative [Line Items] | |||||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | (5,413) | ||||
Other Noncurrent Assets [Member] | |||||
Derivative [Line Items] | |||||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 29,271 | 14,404 | |||
Other Current Assets [Member] | |||||
Derivative [Line Items] | |||||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | $ 49,172 | $ 87,151 | |||
[1] | Net amount includes energy commodity derivative contracts classified as current assets, net, of $49,172 and noncurrent assets of $29,271. | ||||
[2] | Net amount includes energy commodity derivative contracts classified as current assets, net, of $87,151, current liabilities of $5,413 and noncurrent assets of $14,404. | ||||
[3] | This represents the maximum amount of loss we would incur if all of our counterparties failed to perform on their derivative contracts. |
Derivative Financial Instrume44
Derivative Financial Instruments (Derivative Gains Included In Accumulated Other Comprehensive Loss (AOCL) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | ||
Derivative Gains Included in AOCI [Roll Forward] | ||||||
Beginning balance | $ (29,528) | $ 9,835 | $ (16,587) | $ 13,627 | $ 13,627 | |
Net gain (loss) on cash flow hedges | [1] | (3,410) | (1,830) | (16,939) | (5,443) | |
Reclassification of net loss (gain) on cash flow hedges to income | [1] | 388 | 119 | 976 | (60) | |
Ending balance | $ (32,550) | $ 8,124 | $ (32,550) | $ 8,124 | $ (16,587) | |
[1] | See Note 8–Derivative Financial Instruments for details of the amount of gain/loss recognized in accumulated other comprehensive loss ("AOCL") for derivative financial instruments and the amount of gain/loss reclassified from AOCL into income. |
Derivative Financial Instrume45
Derivative Financial Instruments (Derivatives And Hedging-Cash Flow Hedges) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net gain (loss) on cash flow hedges | [1] | $ (3,410) | $ (1,830) | $ (16,939) | $ (5,443) |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest Rate Contract [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net gain (loss) on cash flow hedges | (3,410) | (1,830) | (16,939) | (5,443) | |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest Rate Contract [Member] | Interest Expense [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (388) | (119) | (976) | (123) | |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | $ 0 | $ 0 | $ 0 | $ 183 | |
[1] | See Note 8–Derivative Financial Instruments for details of the amount of gain/loss recognized in accumulated other comprehensive loss ("AOCL") for derivative financial instruments and the amount of gain/loss reclassified from AOCL into income. |
Derivative Financial Instrume46
Derivative Financial Instruments (Derivatives And Hedging-Overall-Subsequent Measurement) (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 82,896 | $ 47,982 | $ 53,766 | $ 31,025 |
NYMEX Commodity Contracts [Member] | Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 71,902 | 47,545 | 52,432 | 33,715 |
NYMEX Commodity Contracts [Member] | Operating Expenses [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 14,761 | 4,350 | 7,181 | 447 |
NYMEX Commodity Contracts [Member] | Cost of Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ (3,767) | $ (3,913) | $ (5,847) | $ (3,137) |
Derivative Financial Instrume47
Derivative Financial Instruments (Derivatives and Hedging - Designated) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 25,986 | $ 14,764 |
Derivative Liability, Fair Value, Gross Liability | 1,082 | 26,478 |
Designated as Hedging Instrument [Member] | NYMEX Commodity Contracts [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 913 | 360 |
Designated as Hedging Instrument [Member] | NYMEX Commodity Contracts [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Designated as Hedging Instrument [Member] | NYMEX Commodity Contracts [Member] | Other Noncurrent Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 24,499 | 14,404 |
Designated as Hedging Instrument [Member] | NYMEX Commodity Contracts [Member] | Other Noncurrent Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | |
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 26,478 | |
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Other Noncurrent Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 574 | |
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Other Noncurrent Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 1,082 | |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 63,726 | |
Derivative Liability, Fair Value, Gross Liability | 10,695 | |
Not Designated as Hedging Instrument [Member] | NYMEX Commodity Contracts [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 58,685 | 92,000 |
Not Designated as Hedging Instrument [Member] | NYMEX Commodity Contracts [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 10,426 | $ 10,622 |
Not Designated as Hedging Instrument [Member] | NYMEX Commodity Contracts [Member] | Other Noncurrent Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 5,041 | |
Not Designated as Hedging Instrument [Member] | NYMEX Commodity Contracts [Member] | Other Noncurrent Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ 269 |
Commitments And Contingencies (
Commitments And Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Loss Contingencies [Line Items] | |||||
Liabilities recognized for estimated environmental costs | $ 31.5 | $ 31.5 | $ 36.3 | ||
Estimated environmental liabilities, years | 10 years | ||||
Environmental expenses | 1.3 | $ 3.7 | $ 5.6 | $ 4.1 | |
Receivables from insurance carriers related to environmental matters | 2.6 | 2.6 | 5.1 | ||
Accounts Receivable [Member] | |||||
Loss Contingencies [Line Items] | |||||
Receivables from insurance carriers related to environmental matters | 0.9 | 0.9 | 1.3 | ||
Other Noncurrent Assets [Member] | |||||
Loss Contingencies [Line Items] | |||||
Receivables from insurance carriers related to environmental matters | $ 1.7 | $ 1.7 | $ 3.8 |
Long-Term Incentive Plan (Narra
Long-Term Incentive Plan (Narrative) (Details) - shares | 1 Months Ended | 9 Months Ended | |
Feb. 28, 2015 | Jan. 31, 2015 | Sep. 30, 2015 | |
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Limited partners' capital account, units authorized for issuance | 9,400,000 | ||
Limited partner unitholders, units remaining available | 1,000,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 166,189 | ||
Management [Member] | |||
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Partners' Capital Account, Units, Unit-based Compensation | 354,529 | ||
Director [Member] | |||
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Partners' Capital Account, Units, Unit-based Compensation | 4,461 |
Long-Term Incentive Plan (Equit
Long-Term Incentive Plan (Equity-Based Incentive Compensation Expense) (Details) - Management [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||||
Allocation of LTIP expense on consolidated statements of income | $ 4,687 | $ 4,978 | $ 15,226 | $ 17,731 |
G&A Expense [Member] | ||||
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||||
Allocation of LTIP expense on consolidated statements of income | 4,643 | 4,862 | 15,016 | 17,322 |
Operating Expenses [Member] | ||||
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||||
Allocation of LTIP expense on consolidated statements of income | 44 | 116 | 210 | 409 |
Equity Method [Member] | ||||
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||||
Allocation of LTIP expense on consolidated statements of income | 5,277 | 3,769 | 14,725 | 12,128 |
Liability Method [Member] | ||||
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||||
Allocation of LTIP expense on consolidated statements of income | (590) | 1,209 | 501 | 5,603 |
Performance Based Awards [Member] | Two Thousand Twelve Awards [Member] | ||||
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||||
Allocation of LTIP expense on consolidated statements of income | 1,673 | 6,258 | ||
Performance Based Awards [Member] | Two Thousand Twelve Awards [Member] | Equity Method [Member] | ||||
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||||
Allocation of LTIP expense on consolidated statements of income | 1,022 | 3,066 | ||
Performance Based Awards [Member] | Two Thousand Twelve Awards [Member] | Liability Method [Member] | ||||
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||||
Allocation of LTIP expense on consolidated statements of income | 651 | 3,192 | ||
Performance Based Awards [Member] | Two Thousand Thirteen Awards [Member] | ||||
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||||
Allocation of LTIP expense on consolidated statements of income | 1,083 | 1,908 | 6,747 | 7,137 |
Performance Based Awards [Member] | Two Thousand Thirteen Awards [Member] | Equity Method [Member] | ||||
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||||
Allocation of LTIP expense on consolidated statements of income | 1,673 | 1,350 | 6,246 | 4,726 |
Performance Based Awards [Member] | Two Thousand Thirteen Awards [Member] | Liability Method [Member] | ||||
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||||
Allocation of LTIP expense on consolidated statements of income | (590) | 558 | 501 | 2,411 |
Performance Based Awards [Member] | Two Thousand Fourteen Awards [Member] | ||||
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||||
Allocation of LTIP expense on consolidated statements of income | 1,497 | 1,101 | 3,980 | 3,233 |
Performance Based Awards [Member] | Two Thousand Fourteen Awards [Member] | Equity Method [Member] | ||||
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||||
Allocation of LTIP expense on consolidated statements of income | 1,497 | 1,101 | 3,980 | 3,233 |
Performance Based Awards [Member] | Two Thousand Fourteen Awards [Member] | Liability Method [Member] | ||||
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||||
Allocation of LTIP expense on consolidated statements of income | 0 | 0 | 0 | 0 |
Performance Based Awards [Member] | Two Thousand Fifteen Awards [Member] | ||||
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||||
Allocation of LTIP expense on consolidated statements of income | 1,727 | 3,687 | ||
Performance Based Awards [Member] | Two Thousand Fifteen Awards [Member] | Equity Method [Member] | ||||
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||||
Allocation of LTIP expense on consolidated statements of income | 1,727 | 3,687 | ||
Performance Based Awards [Member] | Two Thousand Fifteen Awards [Member] | Liability Method [Member] | ||||
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||||
Allocation of LTIP expense on consolidated statements of income | 0 | 0 | ||
Retention Awards [Member] | ||||
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||||
Allocation of LTIP expense on consolidated statements of income | 380 | 296 | 812 | 1,103 |
Retention Awards [Member] | Equity Method [Member] | ||||
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||||
Allocation of LTIP expense on consolidated statements of income | 380 | 296 | 812 | 1,103 |
Retention Awards [Member] | Liability Method [Member] | ||||
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||||
Allocation of LTIP expense on consolidated statements of income | $ 0 | $ 0 | $ 0 | $ 0 |
Distributions (Schedule Of Dist
Distributions (Schedule Of Distributions) (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 13, 2015 | [1] | Aug. 14, 2015 | May. 15, 2015 | Feb. 13, 2015 | Nov. 14, 2014 | Aug. 14, 2014 | May. 15, 2014 | Feb. 14, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 |
Per Unit Cash Distribution Amount | $ 0.7400 | $ 0.7175 | $ 0.6950 | $ 0.6675 | $ 0.64 | $ 0.6125 | $ 0.585 | $ 2.1525 | $ 1.8375 | $ 2.505 | |||
Total Cash Distribution to Limited Partners | $ 168,296 | $ 163,178 | $ 158,061 | $ 151,568 | $ 145,324 | $ 139,079 | $ 132,835 | $ 489,535 | $ 417,238 | $ 568,806 | |||
Scenario, Forecast | |||||||||||||
Per Unit Cash Distribution Amount | $ 0.7625 | $ 2.915 | |||||||||||
Total Cash Distribution to Limited Partners | $ 173,413 | $ 662,948 | |||||||||||
[1] | Our general partner's board of directors declared this cash distribution on October 22, 2015 to be paid on November 13, 2015 to unitholders of record at the close of business on November 2, 2015. |
Fair Value (Schedule Of Carryin
Fair Value (Schedule Of Carrying Amounts And Fair Values Of Financial Assets/Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | NYMEX Commodity Contracts [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | $ 78,443 | $ 96,142 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | (3,420,351) | (3,212,462) |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Interest Rate Contract [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | (508) | (26,478) |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term receivables | 21,681 | 30,200 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term receivables | 21,681 | 30,200 |
Debt | (3,420,351) | (3,212,462) |
Estimate of Fair Value Measurement [Member] | NYMEX Commodity Contracts [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 78,443 | 96,142 |
Estimate of Fair Value Measurement [Member] | Interest Rate Contract [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | (508) | (26,478) |
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term receivables | 22,055 | 28,611 |
Debt | (3,407,114) | (2,982,895) |
Reported Value Measurement [Member] | NYMEX Commodity Contracts [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 78,443 | 96,142 |
Reported Value Measurement [Member] | Interest Rate Contract [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | $ (508) | $ (26,478) |
Related Party Transactions (Det
Related Party Transactions (Details) - Director [Member] - USD ($) $ in Millions | 3 Months Ended | 5 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Targa Resource Partners L P [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 1.5 | $ 0.1 | $ 14.3 | $ 13.9 | ||
Accounts Payable, Related Parties | 1 | $ 1 | 1 | $ 0.9 | ||
Methvin Company [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related Party Transaction, Other Revenues from Transactions with Related Party | 4.1 | 6.7 | ||||
Accounts Receivable, Related Parties, Current | $ 1.3 | $ 1.3 | $ 1.3 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Nov. 13, 2015 | [1] | Oct. 31, 2015 | Aug. 14, 2015 | May. 15, 2015 | Feb. 13, 2015 | Nov. 14, 2014 | Aug. 14, 2014 | May. 15, 2014 | Feb. 14, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 |
Subsequent Event [Line Items] | ||||||||||||||
Cash distribution per unit | $ 0.7400 | $ 0.7175 | $ 0.6950 | $ 0.6675 | $ 0.64 | $ 0.6125 | $ 0.585 | $ 2.1525 | $ 1.8375 | $ 2.505 | ||||
Total cash distributions | $ 168,296,000 | $ 163,178,000 | $ 158,061,000 | $ 151,568,000 | $ 145,324,000 | $ 139,079,000 | $ 132,835,000 | $ 489,535,000 | $ 417,238,000 | $ 568,806,000 | ||||
Debt placement costs | 4,754,000 | $ 2,912,000 | ||||||||||||
Revolving Credit Facility [Member] | Senior Notes [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Borrowing capacity | $ 1,000,000,000 | |||||||||||||
Unused commitment fee | 0.125% | |||||||||||||
Revolving Credit Facility [Member] | Senior Notes [Member] | Minimum [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||||||||||
Unused commitment fee | 0.10% | |||||||||||||
Revolving Credit Facility [Member] | Senior Notes [Member] | Maximum [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |||||||||||||
Unused commitment fee | 0.28% | |||||||||||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | Minimum [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||||||||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | Maximum [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.625% | |||||||||||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | Notes Payable to Banks [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Borrowing capacity | $ 250,000,000 | |||||||||||||
Debt Instrument, Term | 364 days | |||||||||||||
Unused commitment fee | 0.10% | |||||||||||||
Debt placement costs | $ 100,000 | |||||||||||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | Notes Payable to Banks [Member] | Minimum [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Unused commitment fee | 0.08% | |||||||||||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | Notes Payable to Banks [Member] | Maximum [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Unused commitment fee | 0.225% | |||||||||||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | Senior Notes [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Borrowing capacity | $ 1,000,000,000 | |||||||||||||
Unused commitment fee | 0.125% | |||||||||||||
Debt placement costs | $ 1,400,000 | |||||||||||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | Senior Notes [Member] | Minimum [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Unused commitment fee | 0.10% | |||||||||||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | Senior Notes [Member] | Maximum [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Unused commitment fee | 0.275% | |||||||||||||
Scenario, Forecast | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Cash distribution per unit | $ 0.7625 | $ 2.915 | ||||||||||||
Total cash distributions | $ 173,413,000 | $ 662,948,000 | ||||||||||||
[1] | Our general partner's board of directors declared this cash distribution on October 22, 2015 to be paid on November 13, 2015 to unitholders of record at the close of business on November 2, 2015. |