Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 01, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
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 | 228,024,556 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Income Statement [Abstract] | |||||
Transportation and terminals revenue | $ 446,935 | $ 413,433 | $ 1,272,845 | $ 1,175,748 | |
Product sales revenue | 121,010 | 133,356 | 548,634 | 403,607 | |
Affiliate management fee revenue | 4,903 | 4,993 | 12,883 | 11,140 | |
Total revenue | 572,848 | 551,782 | 1,834,362 | 1,590,495 | |
Costs and expenses: | |||||
Operating | 165,368 | 134,915 | 442,254 | 392,011 | |
Cost of product sales | 121,819 | 118,242 | 440,670 | 327,530 | |
Depreciation and amortization | 49,909 | 47,081 | 146,103 | 134,137 | |
General and administrative | 37,202 | 35,584 | 120,876 | 110,814 | |
Total costs and expenses | 374,298 | 335,822 | 1,149,903 | 964,492 | |
Earnings of non-controlled entities | 31,151 | 18,576 | 78,173 | 51,543 | |
Operating profit | 229,701 | 234,536 | 762,632 | 677,546 | |
Interest expense | 51,895 | 50,163 | 154,653 | 142,573 | |
Interest income | (240) | (302) | (788) | (1,067) | |
Interest capitalized | (3,424) | (7,877) | (10,804) | (21,143) | |
Gain on sale of terminal | (18,505) | 0 | (18,505) | 0 | |
Gain on exchange of interest in non-controlled entity | 0 | 0 | 0 | (28,144) | |
Other expense (income) | 549 | (2,737) | 3,762 | (6,447) | |
Income before provision for income taxes | 199,426 | 195,289 | 634,314 | 591,774 | |
Provision for income taxes | 926 | 738 | 2,678 | 2,294 | |
Net income | $ 198,500 | $ 194,551 | $ 631,636 | $ 589,480 | |
Basic net income per limited partner unit (in dollars per share) | $ 0.87 | $ 0.85 | $ 2.77 | $ 2.59 | |
Diluted net income per limited partner unit (in dollars per share) | $ 0.87 | $ 0.85 | $ 2.77 | $ 2.59 | |
Weighted average number of limited partner units outstanding used for basic net income per unit calculation (in dollars per share) | [1] | 228,199 | 227,960 | 228,167 | 227,913 |
Weighted average number of limited partner units outstanding used for diluted net income per unit calculation (in dollars per share) | [1] | 228,260 | 227,999 | 228,222 | 227,947 |
[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, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 198,500 | $ 194,551 | $ 631,636 | $ 589,480 | |
Other comprehensive income: | |||||
Net gain (loss) on cash flow hedges(1) | [1] | (228) | (3,169) | (1,735) | (24,278) |
Reclassification of net (gain) loss on cash flow hedges to income(1) | [1] | 740 | 512 | 2,219 | 1,288 |
Amortization of prior service credit(2) | [2] | (45) | (973) | (136) | (2,920) |
Amortization of actuarial loss(2) | [2] | 1,568 | 1,452 | 4,779 | 4,145 |
Settlement cost(2) | [2] | 289 | 202 | 2,015 | 202 |
Total other comprehensive income (loss) | 2,324 | (1,976) | 7,142 | (21,563) | |
Comprehensive income | $ 200,824 | $ 192,575 | $ 638,778 | $ 567,917 | |
[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, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 1,381 | $ 14,701 |
Trade accounts receivable | 128,765 | 105,689 |
Other accounts receivable | 13,349 | 25,761 |
Inventory | 168,762 | 134,378 |
Energy commodity derivatives contracts, net | 1,189 | 0 |
Energy commodity derivatives deposits | 31,735 | 49,899 |
Other current assets | 62,247 | 39,966 |
Total current assets | 407,428 | 370,394 |
Property, plant and equipment | 7,121,856 | 6,783,737 |
Less: Accumulated depreciation | 1,638,351 | 1,507,996 |
Net property, plant and equipment | 5,483,505 | 5,275,741 |
Investments in non-controlled entities | 1,066,940 | 931,255 |
Long-term receivables | 27,166 | 23,870 |
Goodwill | 53,260 | 53,260 |
Other intangibles (less accumulated amortization of $2,136 and $1,308 at December 31, 2016 and September 30, 2017, respectively) | 52,845 | 51,976 |
Other noncurrent assets | 12,303 | 65,577 |
Total assets | 7,103,447 | 6,772,073 |
LIABILITIES AND PARTNERS’ CAPITAL | ||
Accounts payable | 120,990 | 77,248 |
Accrued payroll and benefits | 40,082 | 45,690 |
Accrued interest payable | 42,257 | 65,643 |
Accrued taxes other than income | 49,844 | 50,166 |
Environmental liabilities | 9,870 | 10,249 |
Deferred revenue | 116,697 | 101,891 |
Accrued product liabilities | 119,572 | 51,600 |
Energy commodity derivatives contracts, net | 14,898 | 30,738 |
Current portion of long-term debt, net | 251,439 | 0 |
Other current liabilities | 44,065 | 48,431 |
Total current liabilities | 809,714 | 481,656 |
Long-term debt, net | 4,051,411 | 4,087,192 |
Long-term pension and benefits | 66,410 | 71,461 |
Other noncurrent liabilities | 29,799 | 25,868 |
Environmental liabilities | 10,818 | 13,791 |
Commitments and contingencies | ||
Partners’ capital: | ||
Limited partner unitholders (227,784 units and 228,025 units outstanding at December 31, 2016 and September 30, 2017, respectively) | 2,229,394 | 2,193,346 |
Accumulated other comprehensive loss | (94,099) | (101,241) |
Total partners’ capital | 2,135,295 | 2,092,105 |
Total liabilities and partners’ capital | $ 7,103,447 | $ 6,772,073 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Other intangibles, accumulated amortization | $ 1,308 | $ 2,136 |
Limited partner unitholders, units outstanding (in dollars per share) | 228,024,556 | 227,783,916 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | ||
Operating Activities: | |||
Net income | $ 631,636 | $ 589,480 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization expense | 146,103 | 134,137 | |
Loss (gain) on sale and retirement of assets | (10,924) | 5,397 | |
Earnings of non-controlled entities | (78,173) | (51,543) | |
Distributions of earnings from investments in non-controlled entities | 78,562 | 50,047 | |
Equity-based incentive compensation expense | 14,183 | 14,737 | |
Settlement cost, amortization of prior service credit and actuarial loss | 6,658 | 1,427 | |
Gain on sale of terminal | (18,505) | 0 | |
Gain on exchange of interest in non-controlled entity | 0 | (28,144) | |
Changes in operating assets and liabilities: | |||
Trade accounts receivable and other accounts receivable | (14,413) | (49,014) | |
Inventory | (34,384) | 7,857 | |
Energy commodity derivatives contracts, net of derivatives deposits | 1,135 | 637 | |
Accounts payable | 15,576 | 5,850 | |
Accrued payroll and benefits | (5,608) | (12,725) | |
Accrued interest payable | (23,386) | (2,393) | |
Accrued taxes other than income | (322) | 2,115 | |
Accrued product liabilities | 67,972 | (6,183) | |
Deferred revenue | 14,806 | 17,191 | |
Current and noncurrent environmental liabilities | (3,352) | (5,649) | |
Other current and noncurrent assets and liabilities | (11,497) | (34,229) | |
Net cash provided by operating activities | 794,572 | 638,995 | |
Investing Activities: | |||
Additions to property, plant and equipment, net | (418,239) | (517,810) | |
Proceeds from sale and disposition of assets | 44,303 | 6,098 | |
Investments in non-controlled entities | (114,078) | (174,900) | |
Distributions in excess of earnings of non-controlled entities | 71,867 | [1] | 4,500 |
Net cash used by investing activities | (416,147) | (682,112) | |
Financing Activities: | |||
Distributions paid | (596,854) | (548,388) | |
Net commercial paper borrowings (repayments) | 218,984 | (244,963) | |
Borrowings under long-term notes | 0 | 1,142,997 | |
Debt placement costs | 0 | (10,500) | |
Net payment on financial derivatives | 0 | (19,287) | |
Payments associated with settlement of equity-based incentive compensation | (13,875) | (14,376) | |
Net cash provided (used) by financing activities | (391,745) | 305,483 | |
Change in cash and cash equivalents | (13,320) | 262,366 | |
Cash and cash equivalents at beginning of period | 14,701 | 28,731 | |
Cash and cash equivalents at end of period | 1,381 | 291,097 | |
Supplemental non-cash investing and financing activities: | |||
Contribution of property, plant and equipment to a non-controlled entity | 93,051 | 0 | |
Issuance of limited partner units in settlement of equity-based incentive plan awards | 1,669 | 7,092 | |
Additions to property, plant and equipment | (443,439) | (514,205) | |
Changes in accounts payable and other current liabilities related to capital expenditures | 25,200 | (3,605) | |
Additions to property, plant and equipment, net | $ (418,239) | $ (517,810) | |
[1] | Includes the $46.5 million distribution to us from MVP as reimbursement for the PP&E we contributed, as well as an additional distribution of $6.2 million not related to the ongoing operations of non-controlled entities. |
Organization, Description of Bu
Organization, Description of Business And Basis Of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
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. Magellan Midstream Partners, L.P. is a Delaware limited partnership and its 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 its 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, 2017 , our asset portfolio, including the assets of our joint ventures, consisted of: • our refined products segment, comprised of our 9,700 -mile refined products pipeline system with 53 terminals as well as 26 independent terminals not connected to our pipeline system and our 1,100 -mile ammonia pipeline system; • our crude oil segment, comprised of approximately 2,200 miles of crude oil pipelines, our condensate splitter and storage facilities with an aggregate storage capacity of approximately 27 million barrels, of which approximately 16 million barrels are used for contract 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. Terminology common in our industry includes the following terms, which describe products that we transport, store and distribute through our pipelines and terminals: • 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, 2016 , 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, 2017 , the results of operations for the three and nine months ended September 30, 2016 and 2017 and cash flows for the nine months ended September 30, 2016 and 2017 . The results of operations for the nine months ended September 30, 2017 are not necessarily indicative of the results to be expected for the full year ending December 31, 2017 for several reasons. Profits from our butane 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 impacts the profits from our commodity activities and, to a lesser extent, the volume of petroleum products we transport 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 U.S. generally accepted accounting principles (“GAAP”). 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, 2016 . In September 2017, we recognized an $18.5 million gain in connection with the sale of an inactive terminal in Chicago, Illinois, which is not included in operating profit because the gain is not related to our ongoing operations. Use of Estimates The preparation of our consolidated financial statements in conformity with 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. New Accounting Pronouncements In March 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . This ASU requires companies that offer postretirement benefits to present the service cost, which is the amount an employer has to set aside each period to cover the benefits, in the same line item with other employee compensation costs. Other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. Additionally, only the service cost component will be eligible for capitalization when applicable. Public companies must comply with the new requirements under ASU 2017-07 for fiscal years that start after December 15, 2017, and the amendments must be applied retrospectively except for the capitalization change, which should be applied prospectively. Early adoption is allowed, and we elected to adopt ASU 2017-07 as of January 1, 2017. Prior to adoption, we expensed all components of pension expense through salaries and wages, which impacted operating income. We are now recording only the service component of pension expense to salaries and wages, with the remainder of the expense being recorded to other income and expense below operating profit. Comparative prior periods have been restated for this change. The changes were not material to our financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This ASU requires lessees to recognize a right of use asset and lease liability on the balance sheet for all leases, with the exception of short-term leases. The new accounting model for lessors remains largely the same, although some changes have been made to align it with the new lessee model and the new revenue recognition guidance. This update also requires companies to include additional disclosures regarding their lessee and lessor agreements. Public companies are required to adopt the standard for financial reporting periods that start after December 15, 2018, although early adoption is permitted. We are currently in the process of evaluating the impact this new standard will have on our financial statements. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory . Prior to this update, reporting entities were required to measure inventory at the lower of cost or market. Market could be replacement cost, net realizable value or net realizable value less an approximately normal profit margin. Under this update, inventory is to be measured at the lower of cost or net realizable value, which is defined as the estimated selling price in the ordinary course of business, less reasonable predictable costs of completion, disposal and transportation. This ASU became effective for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. We adopted this standard on January 1, 2017, and it did not have a material impact on our results of operations, financial position or cash flows as we have historically measured our inventory at the lower of cost or net realizable value, as described above. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. This ASU amends the existing accounting standards for revenue recognition and is based on the principle that revenue should be recognized to depict the transfer of goods or services to a customer at an amount that reflects the consideration a company expects to receive in exchange for those goods or services. We will adopt this ASU as required on January 1, 2018, and we expect to use the modified retrospective method that will result in a cumulative effect adjustment as of the date of adoption. We do not expect the adoption of this ASU to have a material impact on our consolidated financial statements. |
Product Sales Revenues
Product Sales Revenues | 9 Months Ended |
Sep. 30, 2017 | |
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 mark-to-market adjustments from exchange-based futures contracts. See Note 8 – Derivative Financial Instruments for a discussion of our commodity hedging strategies and how our futures contracts impact product sales revenue. For the three and nine months ended September 30, 2016 and 2017 , product sales revenue included the following (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2017 2016 2017 Physical sale of petroleum products $ 146,006 $ 168,346 $ 412,045 $ 553,076 Change in value of futures contracts (12,650 ) (47,336 ) (8,438 ) (4,442 ) Total product sales revenue $ 133,356 $ 121,010 $ 403,607 $ 548,634 |
Segment Disclosures
Segment Disclosures | 9 Months Ended |
Sep. 30, 2017 | |
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”) expense that management does not consider when evaluating the core profitability of our separate operating segments. Three Months Ended September 30, 2016 (in thousands) Refined Products Crude Oil Marine Storage Intersegment Eliminations Total Transportation and terminals revenue $ 267,339 $ 100,113 $ 46,182 $ (201 ) $ 413,433 Product sales revenue 105,834 24,750 2,772 — 133,356 Affiliate management fee revenue 218 4,416 359 — 4,993 Total revenue 373,391 129,279 49,313 (201 ) 551,782 Operating expenses 95,535 24,547 16,325 (1,492 ) 134,915 Cost of product sales 93,761 24,108 373 — 118,242 (Earnings) losses of non-controlled entities 272 (18,180 ) (668 ) — (18,576 ) Operating margin 183,823 98,804 33,283 1,291 317,201 Depreciation and amortization expense 28,432 9,333 8,025 1,291 47,081 G&A expense 22,853 8,445 4,286 — 35,584 Operating profit $ 132,538 $ 81,026 $ 20,972 $ — $ 234,536 Three Months Ended September 30, 2017 (in thousands) Refined Products Crude Oil Marine Storage Intersegment Eliminations Total Transportation and terminals revenue $ 289,030 $ 116,305 $ 42,501 $ (901 ) $ 446,935 Product sales revenue 107,175 12,370 1,465 — 121,010 Affiliate management fee revenue 353 3,703 847 — 4,903 Total revenue 396,558 132,378 44,813 (901 ) 572,848 Operating expenses 118,665 31,163 17,723 (2,183 ) 165,368 Cost of product sales 103,391 16,630 1,798 — 121,819 (Earnings) losses of non-controlled entities 700 (31,244 ) (607 ) — (31,151 ) Operating margin 173,802 115,829 25,899 1,282 316,812 Depreciation and amortization expense 27,469 12,584 8,574 1,282 49,909 G&A expense 23,808 9,266 4,128 — 37,202 Operating profit $ 122,525 $ 93,979 $ 13,197 $ — $ 229,701 Nine Months Ended September 30, 2016 (in thousands) Refined Products Crude Oil Marine Storage Intersegment Eliminations Total Transportation and terminals revenue $ 739,931 $ 303,181 $ 132,837 $ (201 ) $ 1,175,748 Product sales revenue 372,061 26,465 5,081 — 403,607 Affiliate management fee revenue 422 9,686 1,032 — 11,140 Total revenue 1,112,414 339,332 138,950 (201 ) 1,590,495 Operating expenses 279,822 66,228 49,808 (3,847 ) 392,011 Cost of product sales 300,009 26,469 1,052 — 327,530 (Earnings) losses of non-controlled entities 352 (49,870 ) (2,025 ) — (51,543 ) Operating margin 532,231 296,505 90,115 3,646 922,497 Depreciation and amortization expense 78,523 28,264 23,704 3,646 134,137 G&A expense 68,589 27,333 14,892 — 110,814 Operating profit $ 385,119 $ 240,908 $ 51,519 $ — $ 677,546 Nine Months Ended September 30, 2017 (in thousands) Refined Products Crude Oil Marine Storage Intersegment Eliminations Total Transportation and terminals revenue $ 808,818 $ 329,813 $ 136,702 $ (2,488 ) $ 1,272,845 Product sales revenue 509,068 34,876 4,690 — 548,634 Affiliate management fee revenue 1,035 10,311 1,537 — 12,883 Total revenue 1,318,921 375,000 142,929 (2,488 ) 1,834,362 Operating expenses 312,911 89,991 45,753 (6,401 ) 442,254 Cost of product sales 396,292 37,814 6,564 — 440,670 (Earnings) losses of non-controlled entities 167 (76,388 ) (1,952 ) — (78,173 ) Operating margin 609,551 323,583 92,564 3,913 1,029,611 Depreciation and amortization expense 81,440 35,947 24,803 3,913 146,103 G&A expense 75,429 30,376 15,071 — 120,876 Operating profit $ 452,682 $ 257,260 $ 52,690 $ — $ 762,632 |
Investments in Non-Controlled E
Investments in Non-Controlled Entities | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017 were comprised of: Entity Ownership Interest BridgeTex Pipeline Company, LLC (“BridgeTex”) 50% Double Eagle Pipeline LLC (“Double Eagle”) 50% HoustonLink Pipeline Company, LLC (“HoustonLink”) 50% MVP Terminalling, LLC (“MVP”) 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% Recently-Formed Company MVP was formed in September 2017 to construct and develop a refined products marine storage facility along the Houston Ship Channel in Pasadena, Texas. We own a 50% equity interest in MVP, with an affiliate of Valero Energy Corporation (“Valero”) owning the other 50% interest. We serve as construction manager and operator of the MVP facility. The initial phase of this facility is expected to be operational in early 2019. Upon formation of MVP, we contributed $93.1 million of property, plant and equipment (“PP&E”) to this entity. Concurrently, Valero contributed cash of $46.5 million , which was distributed to us as reimbursement for its portion of the PP&E we contributed. The $46.5 million is reflected as distributions in excess of earnings of non-controlled entities on our consolidated statement of cash flows. We serve as operator of BridgeTex, HoustonLink, MVP, Powder Springs, Saddlehorn, Texas Frontera and the pipeline activities of Seabrook. We receive fees for management services as well as reimbursement or payment to us for certain direct operational payroll and other overhead costs. The management fees we have received are reported as affiliate management fee revenue on our consolidated statements of income. Cost reimbursements we receive from these entities in connection with our operating services are included as reductions to costs and expenses on our consolidated statements of income and totaled $1.2 million and $0.7 million during the three months ended September 30, 2016 and 2017 , respectively, and $2.7 million and $3.1 million during the nine months ended September 30, 2016 and 2017 , respectively. We recorded the following revenue from certain of these non-controlled entities in our consolidated statements of income (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2016 2017 2016 2017 Transportation and terminals revenue: BridgeTex, capacity lease $ 8.9 $ 9.1 $ 26.6 $ 27.0 Double Eagle, throughput revenue $ 0.9 $ 1.3 $ 2.5 $ 3.1 Saddlehorn, storage revenue $ — $ 0.5 $ — $ 1.6 Our consolidated balance sheets reflected the following balances related to our investments in non-controlled entities (in millions): December 31, 2016 September 30, 2017 Trade Accounts Receivable Other Accounts Receivable Trade Accounts Receivable Other Accounts Receivable Double Eagle $ 0.3 $ — $ 0.5 $ — MVP $ — $ — $ — $ 0.5 Saddlehorn $ — $ 0.1 $ — $ 0.1 In addition to the transactions noted above, we incurred charges of $9.0 million and $12.9 million for transportation of crude oil at published spot tariff rates on the BridgeTex pipeline during the three and nine months ended September 30, 2017 , respectively. We recorded these charges as cost of product sales in our consolidated statements of income. We also purchased inventory from BridgeTex valued at $2.8 million in September 2017. We recognized an affiliate payable to BridgeTex on our consolidated balance sheets as of September 30, 2017 in the amount of $5.6 million in connection with this activity. In January 2017, we entered into an agreement to guarantee our 50% pro rata share, up to $50.0 million , of obligations under Powder Springs’ credit facility. As of September 30, 2017 , our consolidated balance sheet reflected a $0.8 million other current liability and a corresponding increase in our investment in non-controlled entities on our consolidated balance sheet to reflect the fair value of this guarantee. In February 2016, we transferred a 50% membership interest in Osage Pipe Line Company, LLC (“Osage”) to an affiliate of HollyFrontier Corporation. In conjunction with this transaction, we entered into several commercial agreements with affiliates of HollyFrontier Corporation, which we recorded at that time as a $43.7 million intangible asset and an $8.3 million other receivable on our consolidated balance sheets. The intangible asset will be amortized over the 20 -year life of the contracts received. We recognized a $28.1 million non-cash gain in 2016 in relation to this transaction. The financial results from MVP and Texas Frontera are included in our marine storage segment, the financial results from BridgeTex, Double Eagle, HoustonLink, 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, each as earnings of non-controlled entities. A summary of our investments in non-controlled entities follows (in thousands): Investments at December 31, 2016 $ 931,255 Additional investment (1) 207,941 Earnings of non-controlled entities: Proportionate share of earnings 79,949 Amortization of excess investment and capitalized interest (1,776 ) Earnings of non-controlled entities 78,173 Less: Distributions of earnings from investments in non-controlled entities 78,562 Distributions in excess of earnings of non-controlled entities (2) 71,867 Investments at September 30, 2017 $ 1,066,940 (1) Includes our $93.1 million contribution of PP&E to MVP. (2) Includes the $46.5 million distribution to us from MVP as reimbursement for the PP&E we contributed, as well as an additional distribution of $6.2 million not related to the ongoing operations of non-controlled entities. |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventory at December 31, 2016 and September 30, 2017 was as follows (in thousands): December 31, 2016 September 30, Refined products $ 54,285 $ 51,667 Transmix 28,319 45,160 Liquefied petroleum gases 24,868 51,540 Crude oil 20,839 13,884 Additives 6,067 6,511 Total inventory $ 134,378 $ 168,762 |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans We sponsor a defined contribution plan in which we match our employees' qualifying contributions, resulting in additional expense to us. Expenses related to the defined contribution plan were $2.4 million and $2.0 million for the three months ended September 30, 2016 and 2017 , respectively, and $7.8 million and $7.4 million for the nine months ended September 30, 2016 and 2017 , respectively. Additionally, we sponsor two union pension plans that cover certain union employees and a pension plan for all non-union employees, and a postretirement benefit plan for selected employees. Net periodic benefit expense for the three and nine months ended September 30, 2016 and 2017 was as follows (in thousands): Three Months Ended Three Months Ended September 30, 2016 September 30, 2017 Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits Components of net periodic benefit costs: Service cost $ 4,555 $ 53 $ 5,125 $ 51 Interest cost (1) 1,992 148 2,466 111 Expected return on plan assets (1) (2,235 ) — (2,566 ) — Amortization of prior service credit (1) (45 ) (928 ) (45 ) — Amortization of actuarial loss (1) 1,161 291 1,406 162 Settlement cost (1) 202 — 289 — Net periodic benefit cost (credit) $ 5,630 $ (436 ) $ 6,675 $ 324 Nine Months Ended Nine Months Ended September 30, 2016 September 30, 2017 Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits Components of net periodic benefit costs: Service cost $ 13,648 $ 176 $ 15,373 $ 182 Interest cost (1) 5,970 368 7,398 356 Expected return on plan assets (1) (6,694 ) — (7,699 ) — Amortization of prior service credit (1) (135 ) (2,785 ) (136 ) — Amortization of actuarial loss (1) 3,485 660 4,217 562 Settlement cost (1) 202 — 2,015 — Net periodic benefit cost (credit) $ 16,476 $ (1,581 ) $ 21,168 $ 1,100 (1) Upon adoption of ASU 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , these components of net periodic benefit cost (credit) are reported on the consolidated statements of income as other expense (income). See Note 1 – Organization, Description of Business and Basis of Presentation - New Accounting Pronouncements for further details about this accounting change. The changes in AOCL related to employee benefit plan assets and benefit obligations for the three and nine months ended September 30, 2016 and 2017 were as follows (in thousands): Three Months Ended Three Months Ended September 30, 2016 September 30, 2017 Gains (Losses) Included in AOCL Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits Beginning balance $ (60,045 ) $ (5,433 ) $ (54,138 ) $ (7,481 ) Amortization of prior service credit (45 ) (928 ) (45 ) — Amortization of actuarial loss 1,161 291 1,406 162 Settlement cost 202 — 289 — Ending balance $ (58,727 ) $ (6,070 ) $ (52,488 ) $ (7,319 ) Nine Months Ended Nine Months Ended September 30, 2016 September 30, 2017 Gains (Losses) Included in AOCL Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits Beginning balance $ (62,279 ) $ (3,945 ) $ (58,584 ) $ (7,881 ) Amortization of prior service credit (135 ) (2,785 ) (136 ) — Amortization of actuarial loss 3,485 660 4,217 562 Settlement cost 202 — 2,015 — Ending balance $ (58,727 ) $ (6,070 ) $ (52,488 ) $ (7,319 ) Contributions estimated to be paid into the plans in 2017 are $26.5 million and $0.4 million for the pension and other postretirement benefit plans, respectively. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt at December 31, 2016 and September 30, 2017 was as follows (in thousands): December 31, September 30, Commercial paper $ 50,000 $ 269,000 6.40% Notes due 2018 250,000 250,000 6.55% Notes due 2019 550,000 550,000 4.25% Notes due 2021 550,000 550,000 3.20% Notes due 2025 250,000 250,000 5.00% Notes due 2026 650,000 650,000 6.40% Notes due 2037 250,000 250,000 4.20% Notes due 2042 250,000 250,000 5.15% Notes due 2043 550,000 550,000 4.20% Notes due 2045 250,000 250,000 4.25% Notes due 2046 500,000 500,000 Face value of long-term debt 4,100,000 4,319,000 Unamortized debt issuance costs (1) (26,948 ) (25,106 ) Net unamortized debt premium (1) 6,530 4,241 Net unamortized amount of gains from historical fair value hedges (1) 7,610 4,715 Long-term debt, net, including current portion 4,087,192 4,302,850 Less: Current portion of long-term debt, net — 251,439 Long-term debt, net $ 4,087,192 $ 4,051,411 (1) Debt issuance costs, note discounts and premiums and realized gains and losses of historical fair value hedges are being amortized or accreted to the applicable notes over the respective lives of those notes. All of the instruments detailed in the table above are senior indebtedness. 2017 Debt Offering See Note 14 – Subsequent Events for information about our October 2017 debt issuance. Other Debt Revolving Credit Facilities. At September 30, 2017 , the total borrowing capacity under our revolving credit facility with a maturity date of October 27, 2020 was $1.0 billion . Any borrowings outstanding under this facility are classified as long-term debt on our consolidated balance sheets. Borrowings under this facility are unsecured and bear interest at LIBOR plus a spread ranging from 1.000% to 1.625% based on our credit ratings. Additionally, an unused commitment fee is assessed at a rate between 0.100% and 0.275% depending on our credit ratings. The unused commitment fee was 0.125% at September 30, 2017 . Borrowings under this facility may be used for general partnership purposes, including capital expenditures. As of both December 31, 2016 and September 30, 2017 , there were no borrowings outstanding under this facility, with $6.3 million obligated for letters of credit. Amounts obligated for letters of credit are not reflected as debt on our consolidated balance sheets, but decrease our borrowing capacity under this facility. In October 2017, we extended the maturity date of this facility (see Note 14 – Subsequent Events , for further information). At September 30, 2017 , the total borrowing capacity under our 364 -day credit facility was $250.0 million , and the unused commitment fee was 0.1% . As of both December 31, 2016 and September 30, 2017 , there were no borrowings outstanding under this facility. This credit facility matured on October 19, 2017 and was not renewed. Commercial Paper Program. We have a commercial paper program under which we may issue commercial paper notes in an amount up to the available capacity under our $1.0 billion revolving credit facility. The maturities of the commercial paper notes vary, but may not exceed 397 days from the date of issuance. Because the commercial paper we can issue is limited to amounts available under our revolving credit facility, amounts outstanding under the program are classified as long-term debt. 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 weighted-average interest rate for commercial paper borrowings based on the number of days outstanding was 0.8% for the year ended December 31, 2016 and 1.3% for the nine months ended September 30, 2017 . |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2017 | |
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 debt or hedge against variability in interest rates, and we have historically designated these derivatives as fair value or cash flow hedges for accounting purposes. Adjustments resulting from discontinued hedges continue to be recognized in accordance with their historic hedging relationships. We have entered into $100.0 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 2018. The fair values of these contracts at September 30, 2017 were recorded on our balance sheets as other current assets of $12.4 million , with the offset recorded to other comprehensive income. We account for these agreements as cash flow hedges. Commodity Derivatives Hedging Strategies Our butane blending activities produce gasoline, and we can reasonably estimate the timing and quantities of sales of these products. We use a combination of exchange-based commodities futures contracts and forward purchase and sale contracts to help manage commodity price changes and mitigate the risk of decline in the product margin realized from our butane blending activities. Further, certain of our other commercial operations generate petroleum products, and we also use futures contracts to hedge against price changes for some of these commodities. Forward physical purchase and sale contracts that qualify for and are elected as normal purchases and sales are accounted for using traditional accrual accounting. The futures 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 fair 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 fair 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 are 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 nine months ended September 30, 2016 and 2017 , none of the commodity hedging contracts we entered into qualified for or were designated as cash flow hedges. We use futures contracts designated as economic hedges for accounting purposes to hedge against changes in the price of petroleum products that we expect to sell in the future. Period changes in the fair value of these agreements are recognized currently in earnings as adjustments to product sales revenue. We also use futures contracts designated as economic hedges for accounting purposes to hedge against changes in the price of butane and natural gasoline 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. Additionally, we held certain crude oil tank bottoms which we classified as noncurrent assets and included with other noncurrent assets on our consolidated balance sheets. We used futures contracts to hedge against changes in the fair value of these assets. We recorded the effective portion of the gains or losses for those contracts that qualify as fair value hedges as adjustments to the asset being hedged and the ineffective portions as well as amounts excluded from the assessment of hedge effectiveness as adjustments to other income or expense. During September 2017, as a result of contract renegotiation, we sold a portion of the tank bottoms, settled the related hedges and transferred the remaining tank bottoms from noncurrent assets to PP&E. As outlined in the table below, our open futures contracts at September 30, 2017 were as follows: Type of Contract/Accounting Methodology Product Represented by the Contract and Associated Barrels Maturity Dates Futures - Economic Hedges 5.5 million barrels of refined products and crude oil Between October 2017 and April 2018 Futures - Economic Hedges 2.1 million barrels of butane and natural gasoline Between October 2017 and April 2018 Energy Commodity Derivatives Contracts and Deposits Offsets At December 31, 2016 , we had made margin deposits of $49.9 million for our future contracts with our counterparties, which were recorded as current assets under energy commodity derivatives deposits on our consolidated balance sheets. At September 30, 2017 , we had made margin deposits of $31.7 million for our future contracts with our counterparties, which were recorded as current assets under energy commodity derivatives deposits on our consolidated balance sheets. We have the right to offset the combined fair values of our open futures 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 futures contracts separately from the related margin deposits on our consolidated balance sheets. Additionally, we have the right to offset the fair values of our futures contracts 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, 2016 and September 30, 2017 (in thousands): December 31, 2016 Description Gross Amounts of Recognized Liabilities Gross Amounts of Assets Offset in the Consolidated Balance Sheets Net Amounts of Liabilities Presented in the Consolidated Balance Sheets Margin Deposit Amounts Not Offset in the Consolidated Balance Sheets Net Asset Amount (1) Energy commodity derivatives $ (36,798 ) $ 6,060 $ (30,738 ) $ 49,899 $ 19,161 September 30, 2017 Description Gross Amounts of Recognized Liabilities Gross Amounts of Assets Offset in the Consolidated Balance Sheets Net Amounts of Liabilities Presented in the Consolidated Balance Sheets Margin Deposit Amounts Not Offset in the Consolidated Balance Sheets Net Asset Amount (1) Energy commodity derivatives $ (32,685 ) $ 18,976 $ (13,709 ) $ 31,735 $ 18,026 (1) Amount represents the maximum 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, 2016 and 2017 were as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, Derivative Losses Included in AOCL 2016 2017 2016 2017 Beginning balance $ (50,459 ) $ (34,804 ) $ (30,126 ) $ (34,776 ) Net gain (loss) on cash flow hedges (3,169 ) (228 ) (24,278 ) (1,735 ) Reclassification of net loss on cash flow hedges to income 512 740 1,288 2,219 Ending balance $ (53,116 ) $ (34,292 ) $ (53,116 ) $ (34,292 ) Income Statements The following tables provide a summary of the effect on our consolidated statements of income for the three and nine months ended September 30, 2016 and 2017 of derivatives accounted for under ASC 815-30, Derivatives and Hedging—Cash Flow Hedges , that were designated as hedging instruments (in thousands): Interest Rate Contracts Amount of Loss Recognized in AOCL on Derivative Location of Loss Reclassified from AOCL into Income Amount of Loss Reclassified from AOCL into Income Effective Portion Ineffective Portion Three Months Ended September 30, 2016 $ (3,169 ) Interest expense $ (512 ) $ — Three Months Ended September 30, 2017 $ (228 ) Interest expense $ (740 ) $ — Nine Months Ended September 30, 2016 $ (24,278 ) Interest expense $ (1,288 ) $ — Nine Months Ended September 30, 2017 $ (1,735 ) Interest expense $ (2,219 ) $ — As of September 30, 2017 , the net loss estimated to be classified to interest expense over the next twelve months from AOCL is approximately $3.0 million . Until September 2017, we had used futures contracts designated as fair value hedges under ASC 815-25, Derivatives and Hedging–Fair Value Hedges , to hedge against changes in the fair value of crude oil that was contractually reserved as tank bottoms and included with other noncurrent assets on our consolidated balance sheets. The effective portions of the fair value gains or losses on these futures contracts were offset by fair value gains or losses on the tank bottoms. There was no ineffectiveness recognized on these hedges. The cash flows from settled contracts were recorded in operating activities in our consolidated statements of cash flows. The gains (losses) on these futures contracts and the underlying tank bottoms were as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2016 2017 2016 2017 Gain (loss) recognized in other income/expense on derivatives (futures contracts) 0.4 (1.7 ) (5.8 ) 5.1 Loss (gain) recognized in other income/expense on hedged item (tank bottoms) (0.4 ) 1.7 5.8 (5.1 ) The differential between the current spot price and forward price was excluded from the assessment of hedge effectiveness for these fair value hedges. For the three months ended September 30, 2016 and 2017 , we recognized a gain of $0.3 million and $0.7 million , respectively, and for the nine months ended September 30, 2016 and 2017 , we recognized a gain of $4.5 million and $2.4 million , respectively, for the amounts we excluded from the assessment of effectiveness of these fair value hedges, which we reported as other (income) expense 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, 2016 and 2017 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 Instrument 2016 2017 2016 2017 Futures contracts Product sales revenue $ (12,650 ) $ (47,336 ) $ (8,438 ) $ (4,442 ) Futures contracts Operating expenses 4,212 663 (1,192 ) 663 Futures contracts Cost of product sales 831 19,660 3,643 19,713 Total $ (7,607 ) $ (27,013 ) $ (5,987 ) $ 15,934 The impact of the derivatives in the above table was reflected as cash from operations on our consolidated statements of cash flows. Balance Sheets 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, 2016 and September 30, 2017 (in thousands): December 31, 2016 Asset Derivatives Liability Derivatives Derivative Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value Futures contracts Energy commodity derivatives contracts, net $ — Energy commodity derivatives contracts, net $ 3,079 Interest rate contracts Other noncurrent assets 14,114 Other noncurrent liabilities — Total $ 14,114 Total $ 3,079 September 30, 2017 Asset Derivatives Liability Derivatives Derivative Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value Futures contracts Energy commodity derivatives contracts, net $ 18 Energy commodity derivatives contracts, net $ — Interest rate contracts Other current assets 12,379 Other current liabilities — Total $ 12,397 Total $ — 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, 2016 and September 30, 2017 (in thousands): December 31, 2016 Asset Derivatives Liability Derivatives Derivative Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value Futures contracts Energy commodity derivatives contracts, net $ 6,060 Energy commodity derivatives contracts, net $ 33,719 September 30, 2017 Asset Derivatives Liability Derivatives Derivative Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value Futures contracts Energy commodity derivatives contracts, net $ 18,958 Energy commodity derivatives contracts, net $ 32,685 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Environmental Liabilities Liabilities recognized for estimated environmental costs were $24.0 million and $20.7 million at December 31, 2016 and September 30, 2017 , respectively. We have classified environmental liabilities as current or noncurrent based on management’s estimates regarding the timing of actual payments. Environmental expenses recognized as a result of changes in our environmental liabilities are generally included in operating expenses on our consolidated statements of income. Environmental expenses were $0.3 million and $3.0 million for the three months ended September 30, 2016 and 2017 , respectively, and $4.6 million and $7.5 million for the nine months ended September 30, 2016 and 2017 , respectively. Environmental Receivables Receivables from insurance carriers and other third parties related to environmental matters were $4.1 million at December 31, 2016 , of which $0.6 million and $3.5 million were recorded to other accounts receivable and long-term receivables, respectively, on our consolidated balance sheets. Receivables from insurance carriers and other third parties related to environmental matters were $6.3 million at September 30, 2017 , of which $0.7 million and $5.6 million were recorded to other accounts receivable and long-term receivables, respectively, on our consolidated balance sheets. Other See Note 4 – Investments in Non-Controlled Entities for detail of our guarantee on behalf of Powder Springs. We are a party to various other claims, legal actions and complaints arising in the ordinary course of business. 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, 2017 | |
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 11.9 million of our limited partner units. The compensation committee of our general partner’s board of directors administers our LTIP. The estimated units remaining available under the LTIP at September 30, 2017 total 2.6 million . Our equity-based incentive compensation expense was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2017 2016 2017 Performance-based awards: 2014 awards $ 1,780 $ — $ 6,168 $ 28 2015 awards 1,208 164 3,679 3,388 2016 awards 1,097 1,266 3,240 4,907 2017 awards — 1,298 — 3,796 Time-based awards 593 738 1,650 2,064 Total $ 4,678 $ 3,466 $ 14,737 $ 14,183 Allocation of LTIP expense on our consolidated statements of income: G&A expense $ 4,637 $ 3,430 $ 14,623 $ 14,062 Operating expense 41 36 114 121 Total $ 4,678 $ 3,466 $ 14,737 $ 14,183 On February 2, 2017, 207,445 phantom unit awards were issued pursuant to our LTIP. These grants included both performance-based and time-based phantom unit awards and have a three -year vesting period that will end on December 31, 2019. 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 basic net income per unit is due to the impact of: (i) the phantom units issued to non-employee directors 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 that have not yet vested. |
Partners' Capital and Distribut
Partners' Capital and Distributions | 9 Months Ended |
Sep. 30, 2017 | |
Partners' Capital Notes [Abstract] | |
Partners' Capital and Distributions | Partners’ Capital and Distributions Partners’ Capital In May 2017, we filed a prospectus supplement to the shelf registration statement for our continuous equity offering program (which we refer to as an at-the-market program, or “ATM”) pursuant to which we may issue up to $750.0 million of common units in amounts, at prices and on terms to be determined by market conditions at the time. The net proceeds from any sales under the ATM, after deducting the sales agents’ commissions and our offering expenses, will be used for general partnership purposes, including repayment of indebtedness or capital expenditures. No units were issued pursuant to this program during the current period. The following table details the changes in the number of our limited partner units outstanding from January 1, 2017 through September 30, 2017 : Limited partner units outstanding on January 1, 2017 227,783,916 January 2017–Settlement of 2014 awards (a) 216,679 During 2017–Other (b) 23,961 Limited partner units outstanding on September 30, 2017 228,024,556 (a) Limited partner units issued to settle long-term incentive plan awards to certain employees that vested on December 31, 2016. (b) Limited partner units issued to settle the equity-based retainers paid to certain independent directors of our general partner and the final payment of deferred director compensation to a former director. Distributions Distributions we paid during 2016 and 2017 were as follows (in thousands, except per unit amounts): Payment Date Per Unit Cash Distribution Amount Total Cash Distribution to Limited Partners 02/12/2016 $ 0.7850 $ 178,808 05/13/2016 0.8025 182,797 08/12/2016 0.8200 186,783 Through 09/30/2016 2.4075 548,388 11/14/2016 0.8375 190,769 Total $ 3.2450 $ 739,157 02/14/2017 $ 0.8550 $ 194,961 05/15/2017 0.8725 198,951 08/14/2017 0.8900 202,942 Through 09/30/2017 2.6175 596,854 11/14/2017 (1) 0.9050 206,362 Total $ 3.5225 $ 803,216 (a) Our general partner’s board of directors declared this cash distribution in October 2017 to be paid on November 14, 2017 to unitholders of record at the close of business on November 2, 2017 . |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Fair Value Methods and Assumptions - Financial Assets and Liabilities. We used the following methods and assumptions in estimating fair value of our financial assets and liabilities: • Energy commodity derivatives contracts . These include exchange-traded futures contracts 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 primarily include payments receivable under a direct-financing leasing arrangement and cost reimbursement payments receivable. These receivables were recorded at fair value on our consolidated balance sheets, using then-current market rates to estimate the present value of future cash flows. • Debt. The fair value of our publicly traded notes was based on the prices of those notes at December 31, 2016 and September 30, 2017 ; 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 fair value measurements recorded or disclosed as of December 31, 2016 and September 30, 2017 based on the three levels established by ASC 820, Fair Value Measurements and Disclosures (in thousands): December 31, 2016 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 $ (30,738 ) $ (30,738 ) $ (30,738 ) $ — $ — Interest rate contracts $ 14,114 $ 14,114 $ — $ 14,114 $ — Long-term receivables $ 23,870 $ 23,870 $ — $ — $ 23,870 Debt $ (4,087,192 ) $ (4,262,321 ) $ — $ (4,262,321 ) $ — September 30, 2017 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 $ (13,709 ) $ (13,709 ) $ (13,709 ) $ — $ — Interest rate contracts $ 12,379 $ 12,379 $ — $ 12,379 $ — Long-term receivables $ 27,166 $ 27,166 $ — $ — $ 27,166 Debt $ (4,302,850 ) $ (4,562,570 ) $ — $ (4,562,570 ) $ — |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Stacy P. Methvin is an independent member of our general partner’s board of directors and is also a director of one of our customers. We received tariff revenue from this customer of $4.3 million and $4.1 million for the three months ended September 30, 2016 and 2017 , respectively, and $12.0 million and $12.5 million for the nine months ended September 30, 2016 and 2017 , respectively. We recorded receivables of $1.4 million from this customer at both December 31, 2016 and September 30, 2017 . 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 transactions with our joint ventures. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Recognizable events No recognizable events occurred subsequent to September 30, 2017 . Non-recognizable events Cash Distribution. In October 2017, our general partner’s board of directors declared a quarterly distribution of $0.905 per unit for the period of July 1, 2017 through September 30, 2017. This quarterly cash distribution will be paid on November 14, 2017 to unitholders of record on November 2, 2017 . The total cash distributions expected to be paid under this declaration are approximately $206.4 million . Debt Offering. On October 3, 2017, we issued $500.0 million of 4.20% notes due 2047 in an underwritten public offering. The notes were issued at 99.341% of par. Net proceeds from this offering were approximately $491.6 million , after underwriting discounts and offering expenses of $5.1 million . The net proceeds from this offering were used to repay borrowings outstanding under our commercial paper program. The remaining proceeds may be used for general partnership purposes, including capital expenditures. Credit Facility Extension. On October 26, 2017, we extended the maturity date of our revolving credit facility with a total borrowing capacity of $1.0 billion to October 26, 2022. All other terms remain the same. |
Organization, Description of 21
Organization, Description of Business And Basis Of Presentation (Accounting Policies) (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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, 2016 , 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, 2017 , the results of operations for the three and nine months ended September 30, 2016 and 2017 and cash flows for the nine months ended September 30, 2016 and 2017 . The results of operations for the nine months ended September 30, 2017 are not necessarily indicative of the results to be expected for the full year ending December 31, 2017 for several reasons. Profits from our butane 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 impacts the profits from our commodity activities and, to a lesser extent, the volume of petroleum products we transport 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 U.S. generally accepted accounting principles (“GAAP”). 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, 2016 . |
Use of Estimates | Use of Estimates The preparation of our consolidated financial statements in conformity with 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. |
New Accounting Pronouncements | New Accounting Pronouncements In March 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . This ASU requires companies that offer postretirement benefits to present the service cost, which is the amount an employer has to set aside each period to cover the benefits, in the same line item with other employee compensation costs. Other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. Additionally, only the service cost component will be eligible for capitalization when applicable. Public companies must comply with the new requirements under ASU 2017-07 for fiscal years that start after December 15, 2017, and the amendments must be applied retrospectively except for the capitalization change, which should be applied prospectively. Early adoption is allowed, and we elected to adopt ASU 2017-07 as of January 1, 2017. Prior to adoption, we expensed all components of pension expense through salaries and wages, which impacted operating income. We are now recording only the service component of pension expense to salaries and wages, with the remainder of the expense being recorded to other income and expense below operating profit. Comparative prior periods have been restated for this change. The changes were not material to our financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This ASU requires lessees to recognize a right of use asset and lease liability on the balance sheet for all leases, with the exception of short-term leases. The new accounting model for lessors remains largely the same, although some changes have been made to align it with the new lessee model and the new revenue recognition guidance. This update also requires companies to include additional disclosures regarding their lessee and lessor agreements. Public companies are required to adopt the standard for financial reporting periods that start after December 15, 2018, although early adoption is permitted. We are currently in the process of evaluating the impact this new standard will have on our financial statements. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory . Prior to this update, reporting entities were required to measure inventory at the lower of cost or market. Market could be replacement cost, net realizable value or net realizable value less an approximately normal profit margin. Under this update, inventory is to be measured at the lower of cost or net realizable value, which is defined as the estimated selling price in the ordinary course of business, less reasonable predictable costs of completion, disposal and transportation. This ASU became effective for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. We adopted this standard on January 1, 2017, and it did not have a material impact on our results of operations, financial position or cash flows as we have historically measured our inventory at the lower of cost or net realizable value, as described above. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. This ASU amends the existing accounting standards for revenue recognition and is based on the principle that revenue should be recognized to depict the transfer of goods or services to a customer at an amount that reflects the consideration a company expects to receive in exchange for those goods or services. We will adopt this ASU as required on January 1, 2018, and we expect to use the modified retrospective method that will result in a cumulative effect adjustment as of the date of adoption. We do not expect the adoption of this ASU to have a material impact on our consolidated financial statements. |
Product Sales Revenues (Tables)
Product Sales Revenues (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Product Sales Revenue [Abstract] | |
Components of Product Sales Revenues | For the three and nine months ended September 30, 2016 and 2017 , product sales revenue included the following (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2017 2016 2017 Physical sale of petroleum products $ 146,006 $ 168,346 $ 412,045 $ 553,076 Change in value of futures contracts (12,650 ) (47,336 ) (8,438 ) (4,442 ) Total product sales revenue $ 133,356 $ 121,010 $ 403,607 $ 548,634 |
Segment Disclosures (Tables)
Segment Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Business Segment Reporting Information | Three Months Ended September 30, 2016 (in thousands) Refined Products Crude Oil Marine Storage Intersegment Eliminations Total Transportation and terminals revenue $ 267,339 $ 100,113 $ 46,182 $ (201 ) $ 413,433 Product sales revenue 105,834 24,750 2,772 — 133,356 Affiliate management fee revenue 218 4,416 359 — 4,993 Total revenue 373,391 129,279 49,313 (201 ) 551,782 Operating expenses 95,535 24,547 16,325 (1,492 ) 134,915 Cost of product sales 93,761 24,108 373 — 118,242 (Earnings) losses of non-controlled entities 272 (18,180 ) (668 ) — (18,576 ) Operating margin 183,823 98,804 33,283 1,291 317,201 Depreciation and amortization expense 28,432 9,333 8,025 1,291 47,081 G&A expense 22,853 8,445 4,286 — 35,584 Operating profit $ 132,538 $ 81,026 $ 20,972 $ — $ 234,536 Three Months Ended September 30, 2017 (in thousands) Refined Products Crude Oil Marine Storage Intersegment Eliminations Total Transportation and terminals revenue $ 289,030 $ 116,305 $ 42,501 $ (901 ) $ 446,935 Product sales revenue 107,175 12,370 1,465 — 121,010 Affiliate management fee revenue 353 3,703 847 — 4,903 Total revenue 396,558 132,378 44,813 (901 ) 572,848 Operating expenses 118,665 31,163 17,723 (2,183 ) 165,368 Cost of product sales 103,391 16,630 1,798 — 121,819 (Earnings) losses of non-controlled entities 700 (31,244 ) (607 ) — (31,151 ) Operating margin 173,802 115,829 25,899 1,282 316,812 Depreciation and amortization expense 27,469 12,584 8,574 1,282 49,909 G&A expense 23,808 9,266 4,128 — 37,202 Operating profit $ 122,525 $ 93,979 $ 13,197 $ — $ 229,701 Nine Months Ended September 30, 2016 (in thousands) Refined Products Crude Oil Marine Storage Intersegment Eliminations Total Transportation and terminals revenue $ 739,931 $ 303,181 $ 132,837 $ (201 ) $ 1,175,748 Product sales revenue 372,061 26,465 5,081 — 403,607 Affiliate management fee revenue 422 9,686 1,032 — 11,140 Total revenue 1,112,414 339,332 138,950 (201 ) 1,590,495 Operating expenses 279,822 66,228 49,808 (3,847 ) 392,011 Cost of product sales 300,009 26,469 1,052 — 327,530 (Earnings) losses of non-controlled entities 352 (49,870 ) (2,025 ) — (51,543 ) Operating margin 532,231 296,505 90,115 3,646 922,497 Depreciation and amortization expense 78,523 28,264 23,704 3,646 134,137 G&A expense 68,589 27,333 14,892 — 110,814 Operating profit $ 385,119 $ 240,908 $ 51,519 $ — $ 677,546 Nine Months Ended September 30, 2017 (in thousands) Refined Products Crude Oil Marine Storage Intersegment Eliminations Total Transportation and terminals revenue $ 808,818 $ 329,813 $ 136,702 $ (2,488 ) $ 1,272,845 Product sales revenue 509,068 34,876 4,690 — 548,634 Affiliate management fee revenue 1,035 10,311 1,537 — 12,883 Total revenue 1,318,921 375,000 142,929 (2,488 ) 1,834,362 Operating expenses 312,911 89,991 45,753 (6,401 ) 442,254 Cost of product sales 396,292 37,814 6,564 — 440,670 (Earnings) losses of non-controlled entities 167 (76,388 ) (1,952 ) — (78,173 ) Operating margin 609,551 323,583 92,564 3,913 1,029,611 Depreciation and amortization expense 81,440 35,947 24,803 3,913 146,103 G&A expense 75,429 30,376 15,071 — 120,876 Operating profit $ 452,682 $ 257,260 $ 52,690 $ — $ 762,632 |
Investments in Non-Controlled24
Investments in Non-Controlled Entities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Our investments in non-controlled entities at September 30, 2017 were comprised of: Entity Ownership Interest BridgeTex Pipeline Company, LLC (“BridgeTex”) 50% Double Eagle Pipeline LLC (“Double Eagle”) 50% HoustonLink Pipeline Company, LLC (“HoustonLink”) 50% MVP Terminalling, LLC (“MVP”) 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% Recently-Formed Company MVP was formed in September 2017 to construct and develop a refined products marine storage facility along the Houston Ship Channel in Pasadena, Texas. We own a 50% equity interest in MVP, with an affiliate of Valero Energy Corporation (“Valero”) owning the other 50% interest. We serve as construction manager and operator of the MVP facility. The initial phase of this facility is expected to be operational in early 2019. Upon formation of MVP, we contributed $93.1 million of property, plant and equipment (“PP&E”) to this entity. Concurrently, Valero contributed cash of $46.5 million , which was distributed to us as reimbursement for its portion of the PP&E we contributed. The $46.5 million is reflected as distributions in excess of earnings of non-controlled entities on our consolidated statement of cash flows. We serve as operator of BridgeTex, HoustonLink, MVP, Powder Springs, Saddlehorn, Texas Frontera and the pipeline activities of Seabrook. We receive fees for management services as well as reimbursement or payment to us for certain direct operational payroll and other overhead costs. The management fees we have received are reported as affiliate management fee revenue on our consolidated statements of income. Cost reimbursements we receive from these entities in connection with our operating services are included as reductions to costs and expenses on our consolidated statements of income and totaled $1.2 million and $0.7 million during the three months ended September 30, 2016 and 2017 , respectively, and $2.7 million and $3.1 million during the nine months ended September 30, 2016 and 2017 , respectively. We recorded the following revenue from certain of these non-controlled entities in our consolidated statements of income (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2016 2017 2016 2017 Transportation and terminals revenue: BridgeTex, capacity lease $ 8.9 $ 9.1 $ 26.6 $ 27.0 Double Eagle, throughput revenue $ 0.9 $ 1.3 $ 2.5 $ 3.1 Saddlehorn, storage revenue $ — $ 0.5 $ — $ 1.6 Our consolidated balance sheets reflected the following balances related to our investments in non-controlled entities (in millions): December 31, 2016 September 30, 2017 Trade Accounts Receivable Other Accounts Receivable Trade Accounts Receivable Other Accounts Receivable Double Eagle $ 0.3 $ — $ 0.5 $ — MVP $ — $ — $ — $ 0.5 Saddlehorn $ — $ 0.1 $ — $ 0.1 In addition to the transactions noted above, we incurred charges of $9.0 million and $12.9 million for transportation of crude oil at published spot tariff rates on the BridgeTex pipeline during the three and nine months ended September 30, 2017 , respectively. We recorded these charges as cost of product sales in our consolidated statements of income. We also purchased inventory from BridgeTex valued at $2.8 million in September 2017. We recognized an affiliate payable to BridgeTex on our consolidated balance sheets as of September 30, 2017 in the amount of $5.6 million in connection with this activity. In January 2017, we entered into an agreement to guarantee our 50% pro rata share, up to $50.0 million , of obligations under Powder Springs’ credit facility. As of September 30, 2017 , our consolidated balance sheet reflected a $0.8 million other current liability and a corresponding increase in our investment in non-controlled entities on our consolidated balance sheet to reflect the fair value of this guarantee. In February 2016, we transferred a 50% membership interest in Osage Pipe Line Company, LLC (“Osage”) to an affiliate of HollyFrontier Corporation. In conjunction with this transaction, we entered into several commercial agreements with affiliates of HollyFrontier Corporation, which we recorded at that time as a $43.7 million intangible asset and an $8.3 million other receivable on our consolidated balance sheets. The intangible asset will be amortized over the 20 -year life of the contracts received. We recognized a $28.1 million non-cash gain in 2016 in relation to this transaction. The financial results from MVP and Texas Frontera are included in our marine storage segment, the financial results from BridgeTex, Double Eagle, HoustonLink, 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, each as earnings of non-controlled entities. A summary of our investments in non-controlled entities follows (in thousands): Investments at December 31, 2016 $ 931,255 Additional investment (1) 207,941 Earnings of non-controlled entities: Proportionate share of earnings 79,949 Amortization of excess investment and capitalized interest (1,776 ) Earnings of non-controlled entities 78,173 Less: Distributions of earnings from investments in non-controlled entities 78,562 Distributions in excess of earnings of non-controlled entities (2) 71,867 Investments at September 30, 2017 $ 1,066,940 (1) Includes our $93.1 million contribution of PP&E to MVP. (2) Includes the $46.5 million distribution to us from MVP as reimbursement for the PP&E we contributed, as well as an additional distribution of $6.2 million not related to the ongoing operations of non-controlled entities. |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory at December 31, 2016 and September 30, 2017 was as follows (in thousands): December 31, 2016 September 30, Refined products $ 54,285 $ 51,667 Transmix 28,319 45,160 Liquefied petroleum gases 24,868 51,540 Crude oil 20,839 13,884 Additives 6,067 6,511 Total inventory $ 134,378 $ 168,762 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Schedule of Consolidated Net Periodic Benefit Costs | Net periodic benefit expense for the three and nine months ended September 30, 2016 and 2017 was as follows (in thousands): Three Months Ended Three Months Ended September 30, 2016 September 30, 2017 Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits Components of net periodic benefit costs: Service cost $ 4,555 $ 53 $ 5,125 $ 51 Interest cost (1) 1,992 148 2,466 111 Expected return on plan assets (1) (2,235 ) — (2,566 ) — Amortization of prior service credit (1) (45 ) (928 ) (45 ) — Amortization of actuarial loss (1) 1,161 291 1,406 162 Settlement cost (1) 202 — 289 — Net periodic benefit cost (credit) $ 5,630 $ (436 ) $ 6,675 $ 324 Nine Months Ended Nine Months Ended September 30, 2016 September 30, 2017 Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits Components of net periodic benefit costs: Service cost $ 13,648 $ 176 $ 15,373 $ 182 Interest cost (1) 5,970 368 7,398 356 Expected return on plan assets (1) (6,694 ) — (7,699 ) — Amortization of prior service credit (1) (135 ) (2,785 ) (136 ) — Amortization of actuarial loss (1) 3,485 660 4,217 562 Settlement cost (1) 202 — 2,015 — Net periodic benefit cost (credit) $ 16,476 $ (1,581 ) $ 21,168 $ 1,100 (1) Upon adoption of ASU 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , these components of net periodic benefit cost (credit) are reported on the consolidated statements of income as other expense (income). See Note 1 – Organization, Description of Business and Basis of Presentation - New Accounting Pronouncements for further details about this accounting change. |
Schedule of Amounts Recognized in Other Comprehensive Loss | The changes in AOCL related to employee benefit plan assets and benefit obligations for the three and nine months ended September 30, 2016 and 2017 were as follows (in thousands): Three Months Ended Three Months Ended September 30, 2016 September 30, 2017 Gains (Losses) Included in AOCL Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits Beginning balance $ (60,045 ) $ (5,433 ) $ (54,138 ) $ (7,481 ) Amortization of prior service credit (45 ) (928 ) (45 ) — Amortization of actuarial loss 1,161 291 1,406 162 Settlement cost 202 — 289 — Ending balance $ (58,727 ) $ (6,070 ) $ (52,488 ) $ (7,319 ) Nine Months Ended Nine Months Ended September 30, 2016 September 30, 2017 Gains (Losses) Included in AOCL Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits Beginning balance $ (62,279 ) $ (3,945 ) $ (58,584 ) $ (7,881 ) Amortization of prior service credit (135 ) (2,785 ) (136 ) — Amortization of actuarial loss 3,485 660 4,217 562 Settlement cost 202 — 2,015 — Ending balance $ (58,727 ) $ (6,070 ) $ (52,488 ) $ (7,319 ) |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Consolidated Debt | Long-term debt at December 31, 2016 and September 30, 2017 was as follows (in thousands): December 31, September 30, Commercial paper $ 50,000 $ 269,000 6.40% Notes due 2018 250,000 250,000 6.55% Notes due 2019 550,000 550,000 4.25% Notes due 2021 550,000 550,000 3.20% Notes due 2025 250,000 250,000 5.00% Notes due 2026 650,000 650,000 6.40% Notes due 2037 250,000 250,000 4.20% Notes due 2042 250,000 250,000 5.15% Notes due 2043 550,000 550,000 4.20% Notes due 2045 250,000 250,000 4.25% Notes due 2046 500,000 500,000 Face value of long-term debt 4,100,000 4,319,000 Unamortized debt issuance costs (1) (26,948 ) (25,106 ) Net unamortized debt premium (1) 6,530 4,241 Net unamortized amount of gains from historical fair value hedges (1) 7,610 4,715 Long-term debt, net, including current portion 4,087,192 4,302,850 Less: Current portion of long-term debt, net — 251,439 Long-term debt, net $ 4,087,192 $ 4,051,411 (1) Debt issuance costs, note discounts and premiums and realized gains and losses of historical fair value hedges are being amortized or accreted to the applicable notes over the respective lives of those notes. |
Derivative Financial Instrume28
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule Of NYMEX Contracts And Butane Price Swap Purchase Agreements | As outlined in the table below, our open futures contracts at September 30, 2017 were as follows: Type of Contract/Accounting Methodology Product Represented by the Contract and Associated Barrels Maturity Dates Futures - Economic Hedges 5.5 million barrels of refined products and crude oil Between October 2017 and April 2018 Futures - Economic Hedges 2.1 million barrels of butane and natural gasoline Between October 2017 and April 2018 |
Derivatives and Offset Amounts | 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, 2016 and September 30, 2017 (in thousands): December 31, 2016 Description Gross Amounts of Recognized Liabilities Gross Amounts of Assets Offset in the Consolidated Balance Sheets Net Amounts of Liabilities Presented in the Consolidated Balance Sheets Margin Deposit Amounts Not Offset in the Consolidated Balance Sheets Net Asset Amount (1) Energy commodity derivatives $ (36,798 ) $ 6,060 $ (30,738 ) $ 49,899 $ 19,161 September 30, 2017 Description Gross Amounts of Recognized Liabilities Gross Amounts of Assets Offset in the Consolidated Balance Sheets Net Amounts of Liabilities Presented in the Consolidated Balance Sheets Margin Deposit Amounts Not Offset in the Consolidated Balance Sheets Net Asset Amount (1) Energy commodity derivatives $ (32,685 ) $ 18,976 $ (13,709 ) $ 31,735 $ 18,026 (1) Amount represents the maximum 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, 2016 and 2017 were as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, Derivative Losses Included in AOCL 2016 2017 2016 2017 Beginning balance $ (50,459 ) $ (34,804 ) $ (30,126 ) $ (34,776 ) Net gain (loss) on cash flow hedges (3,169 ) (228 ) (24,278 ) (1,735 ) Reclassification of net loss on cash flow hedges to income 512 740 1,288 2,219 Ending balance $ (53,116 ) $ (34,292 ) $ (53,116 ) $ (34,292 ) |
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, 2016 and 2017 of derivatives accounted for under ASC 815-30, Derivatives and Hedging—Cash Flow Hedges , that were designated as hedging instruments (in thousands): Interest Rate Contracts Amount of Loss Recognized in AOCL on Derivative Location of Loss Reclassified from AOCL into Income Amount of Loss Reclassified from AOCL into Income Effective Portion Ineffective Portion Three Months Ended September 30, 2016 $ (3,169 ) Interest expense $ (512 ) $ — Three Months Ended September 30, 2017 $ (228 ) Interest expense $ (740 ) $ — Nine Months Ended September 30, 2016 $ (24,278 ) Interest expense $ (1,288 ) $ — Nine Months Ended September 30, 2017 $ (1,735 ) Interest expense $ (2,219 ) $ — |
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The gains (losses) on these futures contracts and the underlying tank bottoms were as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2016 2017 2016 2017 Gain (loss) recognized in other income/expense on derivatives (futures contracts) 0.4 (1.7 ) (5.8 ) 5.1 Loss (gain) recognized in other income/expense on hedged item (tank bottoms) (0.4 ) 1.7 5.8 (5.1 ) |
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, 2016 and 2017 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 Instrument 2016 2017 2016 2017 Futures contracts Product sales revenue $ (12,650 ) $ (47,336 ) $ (8,438 ) $ (4,442 ) Futures contracts Operating expenses 4,212 663 (1,192 ) 663 Futures contracts Cost of product sales 831 19,660 3,643 19,713 Total $ (7,607 ) $ (27,013 ) $ (5,987 ) $ 15,934 |
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, 2016 and September 30, 2017 (in thousands): December 31, 2016 Asset Derivatives Liability Derivatives Derivative Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value Futures contracts Energy commodity derivatives contracts, net $ — Energy commodity derivatives contracts, net $ 3,079 Interest rate contracts Other noncurrent assets 14,114 Other noncurrent liabilities — Total $ 14,114 Total $ 3,079 September 30, 2017 Asset Derivatives Liability Derivatives Derivative Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value Futures contracts Energy commodity derivatives contracts, net $ 18 Energy commodity derivatives contracts, net $ — Interest rate contracts Other current assets 12,379 Other current liabilities — Total $ 12,397 Total $ — 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, 2016 and September 30, 2017 (in thousands): December 31, 2016 Asset Derivatives Liability Derivatives Derivative Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value Futures contracts Energy commodity derivatives contracts, net $ 6,060 Energy commodity derivatives contracts, net $ 33,719 September 30, 2017 Asset Derivatives Liability Derivatives Derivative Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value Futures contracts Energy commodity derivatives contracts, net $ 18,958 Energy commodity derivatives contracts, net $ 32,685 |
Long-Term Incentive Plan (Table
Long-Term Incentive Plan (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 September 30, Nine Months Ended September 30, 2016 2017 2016 2017 Performance-based awards: 2014 awards $ 1,780 $ — $ 6,168 $ 28 2015 awards 1,208 164 3,679 3,388 2016 awards 1,097 1,266 3,240 4,907 2017 awards — 1,298 — 3,796 Time-based awards 593 738 1,650 2,064 Total $ 4,678 $ 3,466 $ 14,737 $ 14,183 Allocation of LTIP expense on our consolidated statements of income: G&A expense $ 4,637 $ 3,430 $ 14,623 $ 14,062 Operating expense 41 36 114 121 Total $ 4,678 $ 3,466 $ 14,737 $ 14,183 |
Partners' Capital and Distrib30
Partners' Capital and Distributions (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Partners' Capital Notes [Abstract] | |
Schedule of Capital Units | The following table details the changes in the number of our limited partner units outstanding from January 1, 2017 through September 30, 2017 : Limited partner units outstanding on January 1, 2017 227,783,916 January 2017–Settlement of 2014 awards (a) 216,679 During 2017–Other (b) 23,961 Limited partner units outstanding on September 30, 2017 228,024,556 (a) Limited partner units issued to settle long-term incentive plan awards to certain employees that vested on December 31, 2016. (b) Limited partner units issued to settle the equity-based retainers paid to certain independent directors of our general partner and the final payment of deferred director compensation to a former director. |
Schedule of Distributions | Distributions we paid during 2016 and 2017 were as follows (in thousands, except per unit amounts): Payment Date Per Unit Cash Distribution Amount Total Cash Distribution to Limited Partners 02/12/2016 $ 0.7850 $ 178,808 05/13/2016 0.8025 182,797 08/12/2016 0.8200 186,783 Through 09/30/2016 2.4075 548,388 11/14/2016 0.8375 190,769 Total $ 3.2450 $ 739,157 02/14/2017 $ 0.8550 $ 194,961 05/15/2017 0.8725 198,951 08/14/2017 0.8900 202,942 Through 09/30/2017 2.6175 596,854 11/14/2017 (1) 0.9050 206,362 Total $ 3.5225 $ 803,216 (a) Our general partner’s board of directors declared this cash distribution in October 2017 to be paid on November 14, 2017 to unitholders of record at the close of business on November 2, 2017 . |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 fair value measurements recorded or disclosed as of December 31, 2016 and September 30, 2017 based on the three levels established by ASC 820, Fair Value Measurements and Disclosures (in thousands): December 31, 2016 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 $ (30,738 ) $ (30,738 ) $ (30,738 ) $ — $ — Interest rate contracts $ 14,114 $ 14,114 $ — $ 14,114 $ — Long-term receivables $ 23,870 $ 23,870 $ — $ — $ 23,870 Debt $ (4,087,192 ) $ (4,262,321 ) $ — $ (4,262,321 ) $ — September 30, 2017 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 $ (13,709 ) $ (13,709 ) $ (13,709 ) $ — $ — Interest rate contracts $ 12,379 $ 12,379 $ — $ 12,379 $ — Long-term receivables $ 27,166 $ 27,166 $ — $ — $ 27,166 Debt $ (4,302,850 ) $ (4,562,570 ) $ — $ (4,562,570 ) $ — |
Organization, Description of 32
Organization, Description of Business and Basis of Presentation (Narrative) (Details) $ in Thousands, bbl in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017USD ($)Terminalbblmi | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)Terminalbblmi | Sep. 30, 2016USD ($) | |
Organization and Description of Business [Line Items] | ||||
Gain (Loss) on Disposition of Assets | $ | $ 18,505 | $ 0 | $ 18,505 | $ 0 |
Chicago, Illinois | ||||
Organization and Description of Business [Line Items] | ||||
Gain (Loss) on Disposition of Assets | $ | $ 18,500 | |||
Refined Products [Member] | ||||
Organization and Description of Business [Line Items] | ||||
Number of Pipeline Terminals | Terminal | 53 | 53 | ||
Number of Independent Terminals | Terminal | 26 | 26 | ||
Refined Products [Member] | Refined Products Transportation Services [Member] | ||||
Organization and Description of Business [Line Items] | ||||
Pipeline Length | mi | 9,700 | 9,700 | ||
Refined Products [Member] | Ammonia Transportation Services [Member] | ||||
Organization and Description of Business [Line Items] | ||||
Pipeline Length | mi | 1,100 | 1,100 | ||
Crude Oil Pipeline and Terminals [Member] | ||||
Organization and Description of Business [Line Items] | ||||
Pipeline Length | mi | 2,200 | 2,200 | ||
Storage Capacity | bbl | 27 | 27 | ||
Contracted Storage | bbl | 16 | 16 | ||
Marine Storage [Member] | ||||
Organization and Description of Business [Line Items] | ||||
Number of Independent Terminals | Terminal | 5 | 5 | ||
Storage Capacity | bbl | 26 | 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, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Product Sales Revenue [Abstract] | ||||
Physical sale of petroleum products | $ 168,346 | $ 146,006 | $ 553,076 | $ 412,045 |
Change in value of futures contracts | (47,336) | (12,650) | (4,442) | (8,438) |
Total product sales revenue | $ 121,010 | $ 133,356 | $ 548,634 | $ 403,607 |
Segment Disclosures (Schedule O
Segment Disclosures (Schedule Of Business Segment Reporting Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Transportation and terminals revenue | $ 446,935 | $ 413,433 | $ 1,272,845 | $ 1,175,748 |
Product sales revenue | 121,010 | 133,356 | 548,634 | 403,607 |
Affiliate management fee revenue | 4,903 | 4,993 | 12,883 | 11,140 |
Total revenue | 572,848 | 551,782 | 1,834,362 | 1,590,495 |
Operating expenses | 165,368 | 134,915 | 442,254 | 392,011 |
Cost of product sales | 121,819 | 118,242 | 440,670 | 327,530 |
(Earnings) losses of non-controlled entities | (31,151) | (18,576) | (78,173) | (51,543) |
Operating margin | 316,812 | 317,201 | 1,029,611 | 922,497 |
Depreciation and amortization expense | 49,909 | 47,081 | 146,103 | 134,137 |
G&A expense | 37,202 | 35,584 | 120,876 | 110,814 |
Operating profit | 229,701 | 234,536 | 762,632 | 677,546 |
Operating Segments [Member] | Refined Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Transportation and terminals revenue | 289,030 | 267,339 | 808,818 | 739,931 |
Product sales revenue | 107,175 | 105,834 | 509,068 | 372,061 |
Affiliate management fee revenue | 353 | 218 | 1,035 | 422 |
Total revenue | 396,558 | 373,391 | 1,318,921 | 1,112,414 |
Operating expenses | 118,665 | 95,535 | 312,911 | 279,822 |
Cost of product sales | 103,391 | 93,761 | 396,292 | 300,009 |
(Earnings) losses of non-controlled entities | 700 | 272 | 167 | 352 |
Operating margin | 173,802 | 183,823 | 609,551 | 532,231 |
Depreciation and amortization expense | 27,469 | 28,432 | 81,440 | 78,523 |
G&A expense | 23,808 | 22,853 | 75,429 | 68,589 |
Operating profit | 122,525 | 132,538 | 452,682 | 385,119 |
Operating Segments [Member] | Crude Oil Pipeline and Terminals [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Transportation and terminals revenue | 116,305 | 100,113 | 329,813 | 303,181 |
Product sales revenue | 12,370 | 24,750 | 34,876 | 26,465 |
Affiliate management fee revenue | 3,703 | 4,416 | 10,311 | 9,686 |
Total revenue | 132,378 | 129,279 | 375,000 | 339,332 |
Operating expenses | 31,163 | 24,547 | 89,991 | 66,228 |
Cost of product sales | 16,630 | 24,108 | 37,814 | 26,469 |
(Earnings) losses of non-controlled entities | (31,244) | (18,180) | (76,388) | (49,870) |
Operating margin | 115,829 | 98,804 | 323,583 | 296,505 |
Depreciation and amortization expense | 12,584 | 9,333 | 35,947 | 28,264 |
G&A expense | 9,266 | 8,445 | 30,376 | 27,333 |
Operating profit | 93,979 | 81,026 | 257,260 | 240,908 |
Operating Segments [Member] | Marine Storage [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Transportation and terminals revenue | 42,501 | 46,182 | 136,702 | 132,837 |
Product sales revenue | 1,465 | 2,772 | 4,690 | 5,081 |
Affiliate management fee revenue | 847 | 359 | 1,537 | 1,032 |
Total revenue | 44,813 | 49,313 | 142,929 | 138,950 |
Operating expenses | 17,723 | 16,325 | 45,753 | 49,808 |
Cost of product sales | 1,798 | 373 | 6,564 | 1,052 |
(Earnings) losses of non-controlled entities | (607) | (668) | (1,952) | (2,025) |
Operating margin | 25,899 | 33,283 | 92,564 | 90,115 |
Depreciation and amortization expense | 8,574 | 8,025 | 24,803 | 23,704 |
G&A expense | 4,128 | 4,286 | 15,071 | 14,892 |
Operating profit | 13,197 | 20,972 | 52,690 | 51,519 |
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Transportation and terminals revenue | (901) | (201) | (2,488) | (201) |
Product sales revenue | 0 | 0 | 0 | 0 |
Affiliate management fee revenue | 0 | 0 | 0 | 0 |
Total revenue | (901) | (201) | (2,488) | (201) |
Operating expenses | (2,183) | (1,492) | (6,401) | (3,847) |
Cost of product sales | 0 | 0 | 0 | 0 |
(Earnings) losses of non-controlled entities | 0 | 0 | 0 | 0 |
Operating margin | 1,282 | 1,291 | 3,913 | 3,646 |
Depreciation and amortization expense | 1,282 | 1,291 | 3,913 | 3,646 |
G&A expense | 0 | 0 | 0 | 0 |
Operating profit | $ 0 | $ 0 | $ 0 | $ 0 |
Investments in Non-Controlled35
Investments in Non-Controlled Entities (Details) - USD ($) $ in Thousands | Feb. 29, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | ||
Schedule of Equity Method Investments [Line Items] | ||||||||
Contribution of property, plant and equipment to a non-controlled entity | $ 93,051 | $ 0 | ||||||
Distributions in excess of earnings of non-controlled entities | 71,867 | [1] | 4,500 | |||||
Transportation and terminals revenue | $ 446,935 | $ 413,433 | 1,272,845 | 1,175,748 | ||||
Trade accounts receivable | 128,765 | 128,765 | $ 105,689 | |||||
Other accounts receivable | 13,349 | 13,349 | 25,761 | |||||
Cost of product sales | 121,819 | 118,242 | 440,670 | 327,530 | ||||
Accounts payable | 120,990 | 120,990 | 77,248 | |||||
Intangible Assets, Net (Excluding Goodwill) | 52,845 | 52,845 | 51,976 | |||||
Equity Method Investment, Realized Gain (Loss) on Disposal | 0 | 0 | 0 | 28,144 | ||||
Change in Equity Method Investments [Roll Forward] | ||||||||
Investments at December 31, 2016 | 931,255 | |||||||
Additional investment | [2] | 207,941 | ||||||
Proportionate share of earnings | 79,949 | |||||||
Amortization of excess investment and capitalized interest | (1,776) | |||||||
Earnings of non-controlled entities | 31,151 | 18,576 | 78,173 | 51,543 | ||||
Distributions of earnings from investments in non-controlled entities | 78,562 | 50,047 | ||||||
Distributions in excess of earnings of non-controlled entities | 71,867 | [1] | 4,500 | |||||
Investments at September 30, 2017 | 1,066,940 | 1,066,940 | ||||||
Equity Method Investee [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Related Party Transaction, Other Revenues from Transactions with Related Party | $ 700 | 1,200 | $ 3,100 | 2,700 | ||||
BridgeTex [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Interest in equity method investment | 50.00% | 50.00% | ||||||
Distributions in excess of earnings of non-controlled entities | $ 6,200 | |||||||
Change in Equity Method Investments [Roll Forward] | ||||||||
Distributions in excess of earnings of non-controlled entities | 6,200 | |||||||
BridgeTex [Member] | Equity Method Investee [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Transportation and terminals revenue | $ 9,100 | 8,900 | 27,000 | 26,600 | ||||
Cost of product sales | 9,000 | 12,900 | ||||||
Related Party Transaction, Purchases from Related Party | 2,800 | |||||||
Accounts payable | $ 5,600 | $ 5,600 | ||||||
Double Eagle Pipeline Llc [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Interest in equity method investment | 50.00% | 50.00% | ||||||
Double Eagle Pipeline Llc [Member] | Equity Method Investee [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Transportation and terminals revenue | $ 1,300 | 900 | $ 3,100 | 2,500 | ||||
Trade accounts receivable | $ 500 | $ 500 | 300 | |||||
HoustonLink Pipeline Company LLC [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Interest in equity method investment | 50.00% | 50.00% | ||||||
MVP Terminalling, LLC [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Interest in equity method investment | 50.00% | 50.00% | ||||||
Joint Venture Partner Interest in Investment | 50.00% | 50.00% | ||||||
Contribution of property, plant and equipment to a non-controlled entity | $ 93,100 | |||||||
Distributions in excess of earnings of non-controlled entities | 46,500 | |||||||
Change in Equity Method Investments [Roll Forward] | ||||||||
Distributions in excess of earnings of non-controlled entities | 46,500 | |||||||
MVP Terminalling, LLC [Member] | Equity Method Investee [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Other accounts receivable | $ 500 | $ 500 | 0 | |||||
Powder Springs Logistics, LLC [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Interest in equity method investment | 50.00% | 50.00% | ||||||
Powder Springs Logistics, LLC [Member] | Equity Method Investee [Member] | Guarantee of Indebtedness of Others [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Interest in equity method investment | 50.00% | 50.00% | ||||||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 50,000 | $ 50,000 | ||||||
Guarantees, Fair Value Disclosure | $ 800 | $ 800 | ||||||
Saddlehorn Pipeline Company [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Interest in equity method investment | 40.00% | 40.00% | ||||||
Saddlehorn Pipeline Company [Member] | Equity Method Investee [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Transportation and terminals revenue | $ 500 | $ 0 | $ 1,600 | 0 | ||||
Other accounts receivable | $ 100 | $ 100 | $ 100 | |||||
Seabrook Logistics, LLC [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Interest in equity method investment | 50.00% | 50.00% | ||||||
Texas Frontera 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% | |||||||
Intangible Assets, Net (Excluding Goodwill) | $ 43,700 | |||||||
Nontrade Receivables | $ 8,300 | |||||||
Finite-Lived Intangible Asset, Useful Life | 20 years | |||||||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 28,100 | |||||||
[1] | Includes the $46.5 million distribution to us from MVP as reimbursement for the PP&E we contributed, as well as an additional distribution of $6.2 million not related to the ongoing operations of non-controlled entities. | |||||||
[2] | Includes our $93.1 million contribution of PP&E to MVP. |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Refined products | $ 51,667 | $ 54,285 |
Transmix | 45,160 | 28,319 |
Liquefied petroleum gases | 51,540 | 24,868 |
Crude oil | 13,884 | 20,839 |
Additives | 6,511 | 6,067 |
Total inventory | $ 168,762 | $ 134,378 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017USD ($)pension_plan | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)pension_plan | Sep. 30, 2016USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Contribution Plan, Cost | $ 2 | $ 2.4 | $ 7.4 | $ 7.8 |
Number Of Company Sponsored Union Pension Plans | pension_plan | 2 | 2 | ||
Pension Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 26.5 | $ 26.5 | ||
Other Postretirement Benefits Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 0.4 | $ 0.4 |
Schedule Of Consolidated Net Pe
Schedule Of Consolidated Net Periodic Benefit Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Pension Plan [Member] | ||||
Components of net periodic benefit costs: | ||||
Service cost | $ 5,125 | $ 4,555 | $ 15,373 | $ 13,648 |
Interest cost | 2,466 | 1,992 | 7,398 | 5,970 |
Expected return on plan assets | (2,566) | (2,235) | (7,699) | (6,694) |
Amortization of prior service credit | (45) | (45) | (136) | (135) |
Amortization of actuarial loss | 1,406 | 1,161 | 4,217 | 3,485 |
Settlement cost | 289 | 202 | 2,015 | 202 |
Net periodic benefit cost (credit) | 6,675 | 5,630 | 21,168 | 16,476 |
Other Postretirement Benefits Plan [Member] | ||||
Components of net periodic benefit costs: | ||||
Service cost | 51 | 53 | 182 | 176 |
Interest cost | 111 | 148 | 356 | 368 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service credit | 0 | (928) | 0 | (2,785) |
Amortization of actuarial loss | 162 | 291 | 562 | 660 |
Settlement cost | 0 | 0 | 0 | 0 |
Net periodic benefit cost (credit) | $ 324 | $ (436) | $ 1,100 | $ (1,581) |
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, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Changes in AOCL [Roll Forward] | |||||
Accumulated other comprehensive loss (Beginning Bal) | $ (101,241) | ||||
Amortization of prior service credit | [1] | $ (45) | $ (973) | (136) | $ (2,920) |
Amortization of actuarial loss | [1] | 1,568 | 1,452 | 4,779 | 4,145 |
Settlement cost | [1] | 289 | 202 | 2,015 | 202 |
Accumulated other comprehensive loss (Ending Bal) | (94,099) | (94,099) | |||
Pension Plan [Member] | |||||
Changes in AOCL [Roll Forward] | |||||
Accumulated other comprehensive loss (Beginning Bal) | (54,138) | (60,045) | (58,584) | (62,279) | |
Amortization of prior service credit | (45) | (45) | (136) | (135) | |
Amortization of actuarial loss | 1,406 | 1,161 | 4,217 | 3,485 | |
Settlement cost | 289 | 202 | 2,015 | 202 | |
Accumulated other comprehensive loss (Ending Bal) | (52,488) | (58,727) | (52,488) | (58,727) | |
Other Postretirement Benefits Plan [Member] | |||||
Changes in AOCL [Roll Forward] | |||||
Accumulated other comprehensive loss (Beginning Bal) | (7,481) | (5,433) | (7,881) | (3,945) | |
Amortization of prior service credit | 0 | (928) | 0 | (2,785) | |
Amortization of actuarial loss | 162 | 291 | 562 | 660 | |
Settlement cost | 0 | 0 | 0 | 0 | |
Accumulated other comprehensive loss (Ending Bal) | $ (7,319) | $ (6,070) | $ (7,319) | $ (6,070) | |
[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, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 4,319,000,000 | $ 4,100,000,000 |
Debt Issuance Costs, Net | (25,106,000) | (26,948,000) |
Debt Instrument, Unamortized Discount (Premium), Net | 4,241,000 | 6,530,000 |
Deferred Gain (Loss) on Discontinuation of Interest Rate Fair Value Hedge | 4,715,000 | 7,610,000 |
Long-term Debt | 4,302,850,000 | 4,087,192,000 |
Current portion of long-term debt, net | 251,439,000 | 0 |
Long-term debt, net | 4,051,411,000 | 4,087,192,000 |
6.40% Notes Due 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 250,000,000 | 250,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 6.40% | |
6.55% Notes Due 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 550,000,000 | 550,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 6.55% | |
4.25% Notes Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 550,000,000 | 550,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 4.25% | |
3.20% Notes Due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 250,000,000 | 250,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 3.20% | |
5.00% Notes Due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 650,000,000 | 650,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |
6.40% Notes Due 2037 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 250,000,000 | 250,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 6.40% | |
4.20% Notes Due 2042 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 250,000,000 | 250,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 4.20% | |
5.15% Notes Due 2043 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 550,000,000 | 550,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.15% | |
4.20% Notes Due 2045 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 250,000,000 | 250,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 4.20% | |
4.25% Notes Due 2046 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 500,000,000 | 500,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 4.25% | |
Commercial Paper [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 269,000,000 | $ 50,000,000 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Long term debt | $ 4,302,850,000 | $ 4,087,192,000 |
Revolving Credit Facility [Member] | Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 250,000,000 | |
Unused commitment fee | 0.10% | |
Debt Instrument, Term | 364 days | |
Short-term Debt | $ 0 | 0 |
Revolving Credit Facility [Member] | Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000,000 | |
Unused commitment fee | 0.125% | |
Long term debt | $ 0 | 0 |
Obligation for letters of credit | $ 6,300,000 | $ 6,300,000 |
Revolving Credit Facility [Member] | Line of Credit [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] | Line of Credit [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.625% | |
Unused commitment fee | 0.275% | |
Commercial Paper [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000,000 | |
Long-term Debt, Weighted Average Interest Rate, over Time | 1.30% | 0.80% |
Commercial Paper [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Term | 397 days |
Derivative Financial Instrume42
Derivative Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Derivative [Line Items] | |||||
Energy commodity derivatives deposits, current asset | $ 31,735 | $ 31,735 | $ 49,899 | ||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | (3,000) | ||||
Commodity Contract [Member] | |||||
Derivative [Line Items] | |||||
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 700 | $ 300 | 2,400 | $ 4,500 | |
Future Debt Issuance 2018 [Member] | Cash Flow Hedging [Member] | Interest Rate Contract [Member] | |||||
Derivative [Line Items] | |||||
Derivative, Notional Amount | 100,000 | 100,000 | |||
Derivative Asset, Fair Value, Gross Asset | $ 12,400 | $ 12,400 |
Derivative Financial Instrume43
Derivative Financial Instruments (Schedule Of NYMEX Contracts And Butane Price Swap Purchase Agreements) (Details) bbl in Millions | Sep. 30, 2017bbl |
Economic Hedges [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | 5.5 |
Economic Hedges Futures [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | 2.1 |
Derivative Financial Instrume44
Derivative Financial Instruments (Schedule of Derivative Offset Amounts) (Details) - Exchange Traded [Member] - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | |||
Derivative Liability, Fair Value, Gross Liability | $ (32,685) | $ (36,798) | |
Derivative Asset, Fair Value, Gross Asset | 18,976 | 6,060 | |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | (13,709) | (30,738) | |
Derivative, Collateral, Right to Reclaim Cash | 31,735 | 49,899 | |
Amount After Offset | [1] | $ 18,026 | $ 19,161 |
[1] | Amount represents the maximum loss we would incur if all of our counterparties failed to perform on their derivative contracts. |
Derivative Financial Instrume45
Derivative Financial Instruments (Derivative Gains Included In Accumulated Other Comprehensive Loss (AOCL) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Derivative Gains Included in AOCI [Roll Forward] | |||||
Beginning balance | $ (34,804) | $ (50,459) | $ (34,776) | $ (30,126) | |
Net gain (loss) on cash flow hedges | [1] | (228) | (3,169) | (1,735) | (24,278) |
Reclassification of net loss (gain) on cash flow hedges to income | [1] | 740 | 512 | 2,219 | 1,288 |
Ending balance | $ (34,292) | $ (53,116) | $ (34,292) | $ (53,116) | |
[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-Cash Flow Hedges) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net gain (loss) on cash flow hedges | [1] | $ (228) | $ (3,169) | $ (1,735) | $ (24,278) |
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 | (228) | (3,169) | (1,735) | (24,278) | |
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 | (740) | (512) | (2,219) | (1,288) | |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | $ 0 | $ 0 | $ 0 | $ 0 | |
[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 Instrume47
Derivative Financial Instruments (Derivatives and Hedging-Fair Value Hedges) (Details) - Commodity Contract [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Increase (Decrease) in Fair Value of Price Risk Fair Value Hedging Instruments | $ (1.7) | $ 0.4 | $ 5.1 | $ (5.8) |
Increase (Decrease) in Fair Value of Hedged Item in Price Risk Fair Value Hedge | $ 1.7 | $ (0.4) | $ (5.1) | $ 5.8 |
Derivative Financial Instrume48
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, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ (27,013) | $ (7,607) | $ 15,934 | $ (5,987) |
Commodity Contract [Member] | Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | (47,336) | (12,650) | (4,442) | (8,438) |
Commodity Contract [Member] | Operating Expenses [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 663 | 4,212 | 663 | (1,192) |
Commodity Contract [Member] | Cost of Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 19,660 | $ 831 | $ 19,713 | $ 3,643 |
Derivative Financial Instrume49
Derivative Financial Instruments (Derivatives and Hedging - Designated) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 12,397 | $ 14,114 |
Derivative Liability, Fair Value, Gross Liability | 0 | 3,079 |
Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 18 | 0 |
Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 3,079 |
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 12,379 | |
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | |
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Other Noncurrent Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 14,114 | |
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Other Noncurrent Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | |
Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 18,958 | 6,060 |
Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ 32,685 | $ 33,719 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Loss Contingencies [Line Items] | |||||
Liabilities recognized for estimated environmental costs | $ 20.7 | $ 20.7 | $ 24 | ||
Environmental expenses | 3 | $ 0.3 | 7.5 | $ 4.6 | |
Receivables from insurance carriers related to environmental matters | 6.3 | 6.3 | 4.1 | ||
Accounts Receivable [Member] | |||||
Loss Contingencies [Line Items] | |||||
Receivables from insurance carriers related to environmental matters | 0.7 | 0.7 | 0.6 | ||
Other Noncurrent Assets [Member] | |||||
Loss Contingencies [Line Items] | |||||
Receivables from insurance carriers related to environmental matters | $ 5.6 | $ 5.6 | $ 3.5 |
Long-Term Incentive Plan (Narra
Long-Term Incentive Plan (Narrative) (Details) - shares | Feb. 02, 2017 | Sep. 30, 2017 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Limited partners' capital account, units authorized for issuance | 11,900,000 | |
Limited partner unitholders, units remaining available (in shares) | 2,600,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 207,445 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years |
Long-Term Incentive Plan (Equit
Long-Term Incentive Plan (Equity-Based Incentive Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||||
Allocation of LTIP expense on consolidated statements of income | $ 3,466 | $ 4,678 | $ 14,183 | $ 14,737 |
G&A Expense [Member] | ||||
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||||
Allocation of LTIP expense on consolidated statements of income | 3,430 | 4,637 | 14,062 | 14,623 |
Operating Expenses [Member] | ||||
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||||
Allocation of LTIP expense on consolidated statements of income | 36 | 41 | 121 | 114 |
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 | 0 | 1,780 | 28 | 6,168 |
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 | 164 | 1,208 | 3,388 | 3,679 |
Performance Based Awards [Member] | Two Thousand Sixteen Awards [Member] | ||||
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||||
Allocation of LTIP expense on consolidated statements of income | 1,266 | 1,097 | 4,907 | 3,240 |
Performance Based Awards [Member] | Two Thousand Seventeen Awards [Member] | ||||
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||||
Allocation of LTIP expense on consolidated statements of income | 1,298 | 0 | 3,796 | 0 |
Time-Based Awards [Member] | ||||
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||||
Allocation of LTIP expense on consolidated statements of income | $ 738 | $ 593 | $ 2,064 | $ 1,650 |
Partners' Capital and Distrib53
Partners' Capital and Distributions (Narrative) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Partners' Capital [Abstract] | |
Amount Authorized Under Equity Distribution Agreement | $ 750 |
Partners' Capital and Distrib54
Partners' Capital and Distributions Partners' Capital and Distributions (Schedule of Capital Units) (Details) | 9 Months Ended |
Sep. 30, 2017shares | |
Increase (Decrease) in Partners' Capital [Roll Forward] | |
Limited partner units outstanding on January 1, 2017 | 227,783,916 |
Limited partner units outstanding on September 30, 2017 | 228,024,556 |
Management [Member] | |
Increase (Decrease) in Partners' Capital [Roll Forward] | |
Partners' Capital Account, Units, Unit-based Compensation | 216,679 |
Director [Member] | |
Increase (Decrease) in Partners' Capital [Roll Forward] | |
Partners' Capital Account, Units, Unit-based Compensation | 23,961 |
Partners' Capital and Distrib55
Partners' Capital and Distributions (Schedule Of Distributions) (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 14, 2017 | Aug. 14, 2017 | May 15, 2017 | Feb. 14, 2017 | Nov. 14, 2016 | Aug. 12, 2016 | May 13, 2016 | Feb. 12, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 |
Cash distribution per unit (in dollars per share) | $ 0.8900 | $ 0.8725 | $ 0.8550 | $ 0.8375 | $ 0.8200 | $ 0.8025 | $ 0.785 | $ 2.6175 | $ 2.4075 | $ 3.245 | ||
Total Cash Distribution to Limited Partners | $ 202,942 | $ 198,951 | $ 194,961 | $ 190,769 | $ 186,783 | $ 182,797 | $ 178,808 | $ 596,854 | $ 548,388 | $ 739,157 | ||
Scenario, Forecast | ||||||||||||
Cash distribution per unit (in dollars per share) | $ 0.905 | $ 3.5225 | ||||||||||
Total Cash Distribution to Limited Partners | $ 206,362 | $ 803,216 |
Fair Value (Schedule Of Carryin
Fair Value (Schedule Of Carrying Amounts And Fair Values Of Financial Assets/Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Inputs, Level 1 [Member] | Commodity Contract [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Liability | $ (13,709) | $ (30,738) |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | (4,562,570) | (4,262,321) |
Significant Other Observable Inputs (Level 2) [Member] | Interest Rate Contract [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 12,379 | 14,114 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term receivables | 27,166 | 23,870 |
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term receivables | 27,166 | 23,870 |
Debt | (4,302,850) | (4,087,192) |
Reported Value Measurement [Member] | Commodity Contract [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Liability | (13,709) | (30,738) |
Reported Value Measurement [Member] | Interest Rate Contract [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 12,379 | 14,114 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term receivables | 27,166 | 23,870 |
Debt | (4,562,570) | (4,262,321) |
Estimate of Fair Value Measurement [Member] | Commodity Contract [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Liability | (13,709) | (30,738) |
Estimate of Fair Value Measurement [Member] | Interest Rate Contract [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | $ 12,379 | $ 14,114 |
Related Party Transactions (Det
Related Party Transactions (Details) - Director [Member] - Methvin Company [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||||
Related Party Transaction, Other Revenues from Transactions with Related Party | $ 4.1 | $ 4.3 | $ 12.5 | $ 12 | |
Accounts Receivable, Related Parties, Current | $ 1.4 | $ 1.4 | $ 1.4 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Nov. 14, 2017 | Oct. 02, 2017 | Aug. 14, 2017 | May 15, 2017 | Feb. 14, 2017 | Nov. 14, 2016 | Aug. 12, 2016 | May 13, 2016 | Feb. 12, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Oct. 26, 2017 | Oct. 03, 2017 |
Subsequent Event [Line Items] | |||||||||||||||
Cash distribution per unit (in dollars per share) | $ 0.8900 | $ 0.8725 | $ 0.8550 | $ 0.8375 | $ 0.8200 | $ 0.8025 | $ 0.785 | $ 2.6175 | $ 2.4075 | $ 3.245 | |||||
Total cash distributions | $ 202,942,000 | $ 198,951,000 | $ 194,961,000 | $ 190,769,000 | $ 186,783,000 | $ 182,797,000 | $ 178,808,000 | $ 596,854,000 | $ 548,388,000 | $ 739,157,000 | |||||
Debt Instrument, Face Amount | 4,319,000,000 | $ 4,100,000,000 | |||||||||||||
Borrowings under long-term notes | 0 | 1,142,997,000 | |||||||||||||
Payments of Debt Issuance Costs | 0 | $ 10,500,000 | |||||||||||||
Subsequent Event [Member] | Four Point Two Zero Percentage Notes Due Two Thousand Forty Seven [Member] | |||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||
Debt Instrument, Face Amount | $ 500,000,000 | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.20% | ||||||||||||||
Notes At Price | 99.341% | ||||||||||||||
Borrowings under long-term notes | $ 491,600,000 | ||||||||||||||
Payments of Debt Issuance Costs | $ 5,100,000 | ||||||||||||||
Scenario, Forecast | |||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||
Cash distribution per unit (in dollars per share) | $ 0.905 | $ 3.5225 | |||||||||||||
Total cash distributions | $ 206,362,000 | $ 803,216,000 | |||||||||||||
Revolving Credit Facility [Member] | Line of Credit [Member] | |||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000,000 | ||||||||||||||
Revolving Credit Facility [Member] | Line of Credit [Member] | Subsequent Event [Member] | |||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000,000 |