Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 27, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-16335 | |
Entity Registrant Name | Magellan Midstream Partners, L.P. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 73-1599053 | |
Entity Address, Address Line One | One Williams Center | |
Entity Address, Address Line Two | P.O. Box 22186 | |
Entity Address, City or Town | Tulsa | |
Entity Address, State or Province | OK | |
Entity Address, Postal Zip Code | 74121-2186 | |
City Area Code | 918 | |
Local Phone Number | 574-7000 | |
Title of 12(b) Security | Common Units | |
Trading Symbol | MMP | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 207,684,248 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001126975 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Total revenue | $ 788.6 | $ 653.6 | $ 1,463.3 | $ 1,284.7 |
Costs and expenses: | ||||
Operating | 180.1 | 149.1 | 304.3 | 276.4 |
Cost of product sales | 282.3 | 171.8 | 525.7 | 342.7 |
Depreciation, amortization and impairment | 58.8 | 52.3 | 116.5 | 106.9 |
General and administrative | 56.9 | 56.1 | 119.7 | 102.1 |
Total costs and expenses | 578.1 | 429.3 | 1,066.2 | 828.1 |
Other operating income (expense) | 3 | 1.9 | 1 | 1.5 |
Earnings of non-controlled entities | 26.5 | 40.6 | 61.9 | 79.7 |
Operating profit | 240 | 266.8 | 460 | 537.8 |
Interest expense | 57.8 | 57.1 | 115.1 | 114.1 |
Interest capitalized | (0.3) | (0.5) | (0.7) | (1) |
Interest income | (0.2) | (0.2) | (0.3) | (0.3) |
Gain on disposition of assets | 0 | (69.7) | (0.2) | (69.7) |
Other (income) expense | 0.6 | 14.8 | 1.2 | 15.9 |
Income from continuing operations before provision for income taxes | 182.1 | 265.3 | 344.9 | 478.8 |
Provision for income taxes | 0.3 | 0.4 | 1.1 | 1.2 |
Income from continuing operations | 181.8 | 264.9 | 343.8 | 477.6 |
Income from discontinued operations (including gain on disposition of assets of $162.4 million in June 2022) | 172.1 | 15.5 | 175.6 | 24.1 |
Net income | $ 353.9 | $ 280.4 | $ 519.4 | $ 501.7 |
Earnings per common unit | ||||
Basic income from continuing operations per common unit (in dollars per share) | $ 0.86 | $ 1.19 | $ 1.62 | $ 2.14 |
Basic income from discontinued operations per common unit (in dollars per share) | 0.81 | 0.07 | 0.83 | 0.11 |
Basic net income per common unit (in dollars per share) | $ 1.67 | $ 1.26 | $ 2.45 | $ 2.25 |
Weighted average number of common units outstanding used for basic net income per unit calculation (in shares) | 211.6 | 222.7 | 212.3 | 223.2 |
Diluted income from continuing operations per common unit (in dollars per share) | $ 0.86 | $ 1.19 | $ 1.62 | $ 2.14 |
Diluted income from discontinued operations per common unit (in dollars per share) | 0.81 | 0.07 | 0.83 | 0.11 |
Diluted net income per common unit (in dollars per share) | $ 1.67 | $ 1.26 | $ 2.45 | $ 2.25 |
Weighted average number of common units outstanding used for diluted net income per unit calculation (in shares) | 211.7 | 222.9 | 212.3 | 223.2 |
Transportation and terminals revenue | ||||
Total revenue | $ 469.3 | $ 455.4 | $ 892.2 | $ 867.4 |
Product sales revenue | ||||
Total revenue | 313.7 | 193 | 559.8 | 406.7 |
Affiliate management fee revenue | ||||
Total revenue | $ 5.6 | $ 5.2 | $ 11.3 | $ 10.6 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 353.9 | $ 280.4 | $ 519.4 | $ 501.7 |
Other comprehensive income: | ||||
Reclassification of net loss on cash flow hedges to income | 0.9 | 0.9 | 1.8 | 1.8 |
Net actuarial gain (loss) | 1.1 | 10.8 | 1.1 | 10.8 |
Recognition of prior service credit amortization in income | (0.1) | (0.1) | (0.1) | (0.1) |
Recognition of actuarial loss amortization in income | 1.2 | 1.5 | 2.4 | 3.1 |
Recognition of settlement cost in income | 0 | 1.5 | 0 | 1.5 |
Total other comprehensive income | 3.1 | 14.6 | 5.2 | 17.1 |
Comprehensive income | $ 357 | $ 295 | $ 524.6 | $ 518.8 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 4.6 | $ 2 |
Trade accounts receivable | 140.3 | 135.2 |
Other accounts receivable | 39.5 | 34.6 |
Inventory | 329 | 281.1 |
Commodity derivatives contracts, net | 2.5 | 1.4 |
Commodity derivatives deposits | 95.5 | 46.3 |
Assets held for sale | 0 | 299.5 |
Other current assets | 58.1 | 43.1 |
Total current assets | 669.5 | 843.2 |
Property, plant and equipment | 8,109.4 | 8,045.9 |
Less: accumulated depreciation | 2,239.3 | 2,141.2 |
Net property, plant and equipment | 5,870.1 | 5,904.7 |
Investments in non-controlled entities | 965.1 | 980.8 |
Right-of-use asset, operating leases | 162.1 | 174.2 |
Long-term receivables | 9.3 | 10.1 |
Goodwill | 50.4 | 50.1 |
Other intangibles (less accumulated amortization of $11.9 and $13.3 at December 31, 2021 and June 30, 2022, respectively) | 42.4 | 43.2 |
Restricted cash | 6.3 | 7 |
Other noncurrent assets | 17.2 | 16.7 |
Total assets | 7,792.4 | 8,030 |
Current liabilities: | ||
Accounts payable | 138.8 | 109.5 |
Accrued payroll and benefits | 58 | 74.9 |
Accrued interest payable | 59 | 59 |
Accrued taxes other than income | 63.6 | 76.5 |
Deferred revenue | 85.9 | 92.5 |
Accrued product liabilities | 186.6 | 153.5 |
Commodity derivatives contracts, net | 35 | 18.6 |
Current portion of operating lease liability | 30.8 | 25.8 |
Liabilities held for sale | 0 | 15.8 |
Other current liabilities | 31.1 | 53.5 |
Total current liabilities | 688.8 | 679.6 |
Long-term debt, net | 5,000.9 | 5,088.8 |
Long-term operating lease liability | 134.3 | 147.3 |
Long-term pension and benefits | 140 | 145 |
Other noncurrent liabilities | 69 | 69.5 |
Commitments and contingencies | ||
Partners’ capital: | ||
Common unitholders (212.4 units and 207.7 units outstanding at December 31, 2021 and June 30, 2022, respectively) | 1,909.2 | 2,054.8 |
Accumulated other comprehensive loss | (149.8) | (155) |
Total partners’ capital | 1,759.4 | 1,899.8 |
Total liabilities and partners’ capital | $ 7,792.4 | $ 8,030 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Finite-lived intangible assets, accumulated amortization | $ 13.3 | $ 11.9 |
Limited partner unitholders, units outstanding (in shares) | 207,684,248 | 212,387,990 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Operating Activities: | ||
Net income | $ 519.4 | $ 501.7 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Income from discontinued operations (including gain on disposition of assets of $162.4 million in June 2022) | (175.6) | (24.1) |
Depreciation, amortization and impairment expense | 116.5 | 106.9 |
Gain on disposition of assets | (0.2) | (69.7) |
Earnings of non-controlled entities | (61.9) | (79.7) |
Distributions from operations of non-controlled entities | 78.9 | 94.5 |
Equity-based incentive compensation expense | 22.9 | 10.1 |
Settlement cost, amortization of prior service credit and actuarial loss | 2.3 | 4.5 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable and other accounts receivable | (10) | (32.5) |
Inventory | (47.9) | (58.7) |
Accounts payable | 6.1 | 29.2 |
Accrued payroll and benefits | (16.9) | 5.6 |
Accrued taxes other than income | (12.9) | (15.4) |
Accrued product liabilities | 33.1 | 53.3 |
Deferred revenue | (6.6) | 2.9 |
Other current and noncurrent assets and liabilities | (73.4) | 37.2 |
Net cash provided by operating activities of continuing operations | 373.8 | 565.8 |
Net cash provided by operating activities of discontinued operations | 23.5 | 27.3 |
Net cash provided by operating activities | 397.3 | 593.1 |
Investing Activities: | ||
Additions to property, plant and equipment, net | (86.1) | (67.4) |
Proceeds from sale and disposition of assets | 0.2 | 271.8 |
Investments in non-controlled entities | (0.9) | (5.6) |
Net cash provided (used) by investing activities of continuing operations | (86.8) | 198.8 |
Net cash provided (used) by investing activities of discontinued operations | 448.4 | (1) |
Net cash provided by investing activities | 361.6 | 197.8 |
Financing Activities: | ||
Distributions paid | (440.1) | (458.4) |
Repurchases of common units, net | 219 | 82.3 |
Net commercial paper payments | (89) | 0 |
Payments associated with settlement of equity-based incentive compensation | (8.9) | (6.2) |
Net cash used by financing activities | (757) | (546.9) |
Change in cash, cash equivalents and restricted cash | 1.9 | 244 |
Cash, cash equivalents and restricted cash at beginning of period | 9 | 22.4 |
Cash, cash equivalents and restricted cash at end of period | 10.9 | 266.4 |
Supplemental non-cash investing and financing activities: | ||
Additions to property, plant and equipment | (85.3) | (60.1) |
Changes in accounts payable and other current liabilities related to capital expenditures | (0.8) | (7.3) |
Additions to property, plant and equipment, net | (86.1) | (67.4) |
Repurchases of common units | (239.6) | (82.3) |
Changes in accounts payable related to repurchases of common units | 20.6 | 0 |
Repurchases of common units, net | $ (219) | $ (82.3) |
Consolidated Statements of Part
Consolidated Statements of Partners' Capital - USD ($) $ in Millions | Total | Common Unitholders | Accumulated Other Comprehensive Loss |
Beginning balance at Dec. 31, 2020 | $ 2,303.8 | $ 2,487 | $ (183.2) |
Comprehensive income: | |||
Net income | 501.7 | 501.7 | |
Total other comprehensive income | 17.1 | 17.1 | |
Total comprehensive income | 518.8 | 501.7 | 17.1 |
Distributions | (458.4) | (458.4) | |
Repurchases of common units | (82.3) | (82.3) | |
Equity-based incentive compensation expense | 10.1 | 10.1 | |
Issuance of common units in settlement of equity-based incentive plan awards | 0.1 | 0.1 | |
Payments associated with settlement of equity-based incentive compensation | (6.2) | (6.2) | |
Other | (0.1) | (0.1) | |
Ending balance at Jun. 30, 2021 | 2,285.8 | 2,451.9 | (166.1) |
Beginning balance at Mar. 31, 2021 | 2,297 | 2,477.7 | (180.7) |
Comprehensive income: | |||
Net income | 280.4 | 280.4 | |
Total other comprehensive income | 14.6 | 14.6 | |
Total comprehensive income | 295 | 280.4 | 14.6 |
Distributions | (229) | (229) | |
Repurchases of common units | (82.3) | (82.3) | |
Equity-based incentive compensation expense | 5.4 | 5.4 | |
Other | (0.3) | (0.3) | |
Ending balance at Jun. 30, 2021 | 2,285.8 | 2,451.9 | (166.1) |
Beginning balance at Dec. 31, 2021 | 1,899.8 | 2,054.8 | (155) |
Comprehensive income: | |||
Net income | 519.4 | 519.4 | |
Total other comprehensive income | 5.2 | 5.2 | |
Total comprehensive income | 524.6 | 519.4 | 5.2 |
Distributions | (440.1) | (440.1) | |
Repurchases of common units | (239.6) | (239.6) | |
Equity-based incentive compensation expense | 22.9 | 22.9 | |
Issuance of common units in settlement of equity-based incentive plan awards | 1.1 | 1.1 | |
Payments associated with settlement of equity-based incentive compensation | (8.9) | (8.9) | |
Other | (0.4) | (0.4) | |
Ending balance at Jun. 30, 2022 | 1,759.4 | 1,909.2 | (149.8) |
Beginning balance at Mar. 31, 2022 | 1,802.7 | 1,955.6 | (152.9) |
Comprehensive income: | |||
Net income | 353.9 | 353.9 | |
Total other comprehensive income | 3.1 | 3.1 | |
Total comprehensive income | 357 | 353.9 | 3.1 |
Distributions | (219.5) | (219.5) | |
Repurchases of common units | (189.6) | (189.6) | |
Equity-based incentive compensation expense | 8.5 | 8.5 | |
Issuance of common units in settlement of equity-based incentive plan awards | 0.4 | 0.4 | |
Other | (0.1) | (0.1) | |
Ending balance at Jun. 30, 2022 | $ 1,759.4 | $ 1,909.2 | $ (149.8) |
Consolidated Statements Of In_2
Consolidated Statements Of Income (Parenthetical) $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Income Statement [Abstract] | |
Gain on disposition of assets | $ 162.4 |
Organization, Description of Bu
Organization, Description of Business and Basis Of Presentation | 6 Months Ended |
Jun. 30, 2022 | |
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 our common units are traded on the New York Stock Exchange under the ticker symbol “MMP.” Magellan GP, LLC, a wholly owned Delaware limited liability company, serves as our general partner. The board of directors of our general partner is referred to herein as our “board.” Description of Business We are principally engaged in the transportation, storage and distribution of refined petroleum products and crude oil. As of June 30, 2022, our asset portfolio consisted of: • our refined products segment, comprised of our approximately 9,800-mile refined petroleum products pipeline system with 54 terminals and two marine storage terminals (one of which is owned through a joint venture); and • our crude oil segment, comprised of approximately 2,200 miles of crude oil pipelines, a condensate splitter and 39 million barrels of aggregate storage capacity, of which approximately 29 million barrels are used for contract storage. Approximately 1,000 miles of these pipelines, the condensate splitter and 31 million barrels of this storage capacity (including 25 million barrels used for contract storage) are wholly-owned, with the remainder owned through joint ventures. The following terms are commonly used in our industry to describe products that we transport, store, distribute or otherwise handle through our petroleum pipelines and terminals: • refined products are the output from crude oil refineries that are primarily used as fuels by consumers. Refined products include gasoline, diesel fuel, aviation fuel, kerosene and heating oil. Diesel fuel, kerosene and heating oil are also referred to as distillates; • transmix is a mixture that forms when different refined products are transported in pipelines. Transmix is fractionated and blended into usable refined products; • LPGs are liquids produced as by-products of the crude oil refining process and in connection with natural gas production. LPGs include gas liquids such as butane, natural gasoline and propane; • blendstocks are products blended with refined products to change or enhance their characteristics such as increasing a gasoline’s octane or oxygen content. Blendstocks include alkylates and oxygenates; and • crude oil, which includes condensate, is a naturally occurring unrefined petroleum product recovered from underground that is used as feedstock by refineries, splitters and petrochemical facilities. We use the term petroleum products to describe any, or a combination, of the above-noted products. In addition, we handle, store and distribute renewable fuels, such as ethanol and biodiesel. 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, 2021, which is derived from our audited financial statements, include all normal and recurring adjustments necessary to present fairly our financial position as of June 30, 2022, the results of operations for the three and six months ended June 30, 2021 and 2022 and cash flows for the six months ended June 30, 2021 and 2022. The results of operations for the six months ended June 30, 2022 are not necessarily indicative of the results to be expected for the full year ending December 31, 2022 for several reasons. Profits from our gas liquids 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 refined products pipeline system, generally trends higher during the summer driving months. Further, the volatility of commodity prices impacts the profits from our commodity activities and 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 have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. 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, 2021. Discontinued Operations On June 8, 2022, we completed the sale of our independent terminals network comprised of 26 refined petroleum products terminals in the southeastern U.S. to Buckeye Partners, L.P. (“Buckeye”) for $446.9 million, including working capital adjustments. The related results of operations, financial position and cash flows have been classified as discontinued operations for all periods presented (see Note 2 – Discontinued Operations and Assets Held for Sale for additional details). Unless indicated otherwise, the information in the Notes to Consolidated Financial Statements relates to continuing 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 We evaluate new Accounting Standards Codifications (“ASC”) and updates issued by the Financial Accounting Standards Board on an ongoing basis. There are no new accounting pronouncements that we anticipate will have a material impact on our financial statements. |
Discontinued Operations and Ass
Discontinued Operations and Assets Held for Sale | 6 Months Ended |
Jun. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations and Assets Held for Sale | Discontinued Operations and Assets Held for Sale Summarized Results of Discontinued Operations The following table provides the summarized results that have been presented as discontinued operations on the consolidated statements of income (in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2022 2021 2022 Transportation and terminals revenue $ 13.7 $ 9.0 $ 26.8 $ 21.1 Product sales revenue 27.7 23.7 44.6 30.0 Total revenue 41.4 32.7 71.4 51.1 Costs and expenses: Operating 3.8 4.2 7.2 8.0 Cost of product sales 17.9 18.3 31.8 28.8 Depreciation, amortization and impairment 3.5 — 7.0 — General and administrative 0.7 0.5 1.3 1.1 Total costs and expenses 25.9 23.0 47.3 37.9 Gain on disposition of assets — (162.4) — (162.4) Income from discontinued operations $ 15.5 $ 172.1 $ 24.1 $ 175.6 Summarized Assets and Liabilities of Discontinued Operations The following table provides the summarized assets and liabilities that were classified as held for sale on the consolidated balance sheet as of December 31, 2021 (in millions). Subsequent to the sale of our independent terminals network on June 8, 2022, no assets or liabilities were classified as held for sale. December 31, 2021 Assets: Trade accounts receivable $ 6.3 Inventory 17.0 Net property, plant and equipment 272.0 Goodwill 2.7 Other assets 1.5 Total assets classified as held for sale $ 299.5 Liabilities: Accounts payable $ 3.7 Accrued product liabilities 8.4 Other liabilities 3.7 Total liabilities classified as held for sale $ 15.8 |
Segment Disclosures
Segment Disclosures | 6 Months Ended |
Jun. 30, 2022 | |
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 because each segment requires different marketing strategies and business knowledge. Management evaluates performance based on segment operating margin, which includes revenue from affiliates and third-party customers, intersegment transactions, operating expense, cost of product sales, other operating (income) expense 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, amortization and impairment 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 June 30, 2021 (in millions) Refined Products Crude Oil Intersegment Total Transportation and terminals revenue $ 337.9 $ 118.7 $ (1.2) $ 455.4 Product sales revenue 149.6 43.4 — 193.0 Affiliate management fee revenue 1.6 3.6 — 5.2 Total revenue 489.1 165.7 (1.2) 653.6 Operating expense 108.2 43.8 (2.9) 149.1 Cost of product sales 125.1 46.7 — 171.8 Other operating (income) expense (3.2) 1.3 — (1.9) Earnings of non-controlled entities (8.2) (32.4) — (40.6) Operating margin 267.2 106.3 1.7 375.2 Depreciation, amortization and impairment expense 34.1 16.5 1.7 52.3 G&A expense 40.3 15.8 — 56.1 Operating profit $ 192.8 $ 74.0 $ — $ 266.8 Three Months Ended June 30, 2022 (in millions) Refined Products Crude Oil Intersegment Total Transportation and terminals revenue $ 349.2 $ 121.4 $ (1.3) $ 469.3 Product sales revenue 291.0 22.7 — 313.7 Affiliate management fee revenue 1.7 3.9 — 5.6 Total revenue 641.9 148.0 (1.3) 788.6 Operating expense 136.3 46.6 (2.8) 180.1 Cost of product sales 260.6 21.7 — 282.3 Other operating (income) expense (3.0) — — (3.0) (Earnings) losses of non-controlled entities 2.0 (28.5) — (26.5) Operating margin 246.0 108.2 1.5 355.7 Depreciation, amortization and impairment expense 39.2 18.1 1.5 58.8 G&A expense 40.3 16.6 — 56.9 Operating profit $ 166.5 $ 73.5 $ — $ 240.0 Six Months Ended June 30, 2021 (in millions) Refined Products Crude Oil Intersegment Total Transportation and terminals revenue $ 635.5 $ 234.9 $ (3.0) $ 867.4 Product sales revenue 334.1 72.6 — 406.7 Affiliate management fee revenue 3.2 7.4 — 10.6 Total revenue 972.8 314.9 (3.0) 1,284.7 Operating expense 199.7 83.0 (6.3) 276.4 Cost of product sales 265.9 76.8 — 342.7 Other operating (income) expense (3.5) 2.0 — (1.5) Earnings of non-controlled entities (17.4) (62.3) — (79.7) Operating margin 528.1 215.4 3.3 746.8 Depreciation, amortization and impairment expense 70.2 33.4 3.3 106.9 G&A expense 73.3 28.8 — 102.1 Operating profit $ 384.6 $ 153.2 $ — $ 537.8 Six Months Ended June 30, 2022 (in millions) Refined Products Crude Oil Intersegment Total Transportation and terminals revenue $ 658.7 $ 236.1 $ (2.6) $ 892.2 Product sales revenue 532.6 27.2 — 559.8 Affiliate management fee revenue 3.5 7.8 — 11.3 Total revenue 1,194.8 271.1 (2.6) 1,463.3 Operating expense 224.5 85.4 (5.6) 304.3 Cost of product sales 493.7 32.0 — 525.7 Other operating (income) expense (3.1) 2.1 — (1.0) Earnings of non-controlled entities (1.7) (60.2) — (61.9) Operating margin 481.4 211.8 3.0 696.2 Depreciation, amortization and impairment expense 78.8 34.7 3.0 116.5 G&A expense 86.0 33.7 — 119.7 Operating profit $ 316.6 $ 143.4 $ — $ 460.0 |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Statements of Income Disclosures The following tables provide details of our revenue disaggregated by key activities that comprise our performance obligations by operating segment (in millions): Three Months Ended June 30, 2021 Refined Products Crude Oil Intersegment Eliminations Total Transportation $ 232.1 $ 59.8 $ — $ 291.9 Terminalling 25.2 3.2 — 28.4 Storage 44.6 29.7 (1.2) 73.1 Ancillary services 32.0 7.6 — 39.6 Lease revenue 4.0 18.4 — 22.4 Transportation and terminals revenue 337.9 118.7 (1.2) 455.4 Product sales revenue 149.6 43.4 — 193.0 Affiliate management fee revenue 1.6 3.6 — 5.2 Total revenue 489.1 165.7 (1.2) 653.6 Revenue not under the guidance of ASC 606, Revenue from Contracts with Customers: Lease revenue (4.0) (18.4) — (22.4) (Gains) losses from futures contracts included in product sales revenue 34.3 6.1 — 40.4 Affiliate management fee revenue (1.6) (3.6) — (5.2) Total revenue from contracts with customers under ASC 606 $ 517.8 $ 149.8 $ (1.2) $ 666.4 Three Months Ended June 30, 2022 Refined Products Crude Oil Intersegment Eliminations Total Transportation $ 249.3 $ 62.1 $ — $ 311.4 Terminalling 29.1 12.8 — 41.9 Storage 38.0 24.6 (1.3) 61.3 Ancillary services 26.3 3.5 — 29.8 Lease revenue 6.5 18.4 — 24.9 Transportation and terminals revenue 349.2 121.4 (1.3) 469.3 Product sales revenue 291.0 22.7 — 313.7 Affiliate management fee revenue 1.7 3.9 — 5.6 Total revenue 641.9 148.0 (1.3) 788.6 Revenue not under the guidance of ASC 606, Revenue from Contracts with Customers: Lease revenue (6.5) (18.4) — (24.9) (Gains) losses from futures contracts included in product sales revenue 86.2 2.8 — 89.0 Affiliate management fee revenue (1.7) (3.9) — (5.6) Total revenue from contracts with customers under ASC 606 $ 719.9 $ 128.5 $ (1.3) $ 847.1 Six Months Ended June 30, 2021 Refined Products Crude Oil Intersegment Eliminations Total Transportation $ 425.5 $ 114.8 $ — $ 540.3 Terminalling 47.8 9.3 — 57.1 Storage 93.6 59.0 (3.0) 149.6 Ancillary services 60.5 15.6 — 76.1 Lease revenue 8.1 36.2 — 44.3 Transportation and terminals revenue 635.5 234.9 (3.0) 867.4 Product sales revenue 334.1 72.6 — 406.7 Affiliate management fee revenue 3.2 7.4 — 10.6 Total revenue 972.8 314.9 (3.0) 1,284.7 Revenue not under the guidance of ASC 606, Revenue from Contracts with Customers : Lease revenue (8.1) (36.2) — (44.3) (Gains) losses from futures contracts included in product sales revenue 81.6 11.5 — 93.1 Affiliate management fee revenue (3.2) (7.4) — (10.6) Total revenue from contracts with customers under ASC 606 $ 1,043.1 $ 282.8 $ (3.0) $ 1,322.9 Six Months Ended June 30, 2022 Refined Products Crude Oil Intersegment Eliminations Total Transportation $ 462.6 $ 117.1 $ — $ 579.7 Terminalling 52.4 19.1 — 71.5 Storage 77.5 51.6 (2.6) 126.5 Ancillary services 53.9 11.4 — 65.3 Lease revenue 12.3 36.9 — 49.2 Transportation and terminals revenue 658.7 236.1 (2.6) 892.2 Product sales revenue 532.6 27.2 — 559.8 Affiliate management fee revenue 3.5 7.8 — 11.3 Total revenue 1,194.8 271.1 (2.6) 1,463.3 Revenue not under the guidance of ASC 606, Revenue from Contracts with Customers : Lease revenue (12.3) (36.9) — (49.2) (Gains) losses from futures contracts included in product sales revenue 194.4 11.0 — 205.4 Affiliate management fee revenue (3.5) (7.8) — (11.3) Total revenue from contracts with customers under ASC 606 $ 1,373.4 $ 237.4 $ (2.6) $ 1,608.2 Balance Sheet Disclosures The following table summarizes our accounts receivable, contract assets and contract liabilities resulting from contracts with customers (in millions): December 31, 2021 June 30, 2022 Accounts receivable from contracts with customers $ 134.8 $ 140.2 Contract assets $ 12.5 $ 10.6 Contract liabilities $ 100.1 $ 92.8 For the respective three and six months ended June 30, 2022, we recognized $1.4 million and $69.0 million of transportation and terminals revenue that was recorded in deferred revenue as of December 31, 2021. Unfulfilled Performance Obligations The following table provides the aggregate amount of the transaction price allocated to our unfulfilled performance obligations (“UPOs”) as of June 30, 2022 by operating segment, including the range of years remaining on our contracts with customers and an estimate of revenues expected to be recognized over the next 12 months (dollars in millions): Refined Products Crude Oil Total Balances at June 30, 2022 $ 1,697.0 $ 954.1 $ 2,651.1 Remaining terms 1 - 16 years 1 - 10 years Estimated revenues from UPOs to be recognized in the next 12 months $ 349.2 $ 232.1 $ 581.3 |
Investments in Non-Controlled E
Investments in Non-Controlled Entities | 6 Months Ended |
Jun. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Non-Controlled Entities | Investments in Non-Controlled Entities Our equity investments in non-controlled entities at June 30, 2022 were comprised of: Entity Ownership Interest BridgeTex Pipeline Company, LLC (“BridgeTex”) 30% Double Eagle Pipeline LLC (“Double Eagle”) 50% HoustonLink Pipeline Company, LLC (“HoustonLink”) 50% MVP Terminalling, LLC (“MVP”) 25% Powder Springs Logistics, LLC (“Powder Springs”) 50% Saddlehorn Pipeline Company, LLC (“Saddlehorn”) 30% Seabrook Logistics, LLC (“Seabrook”) 50% Texas Frontera, LLC (“Texas Frontera”) 50% . 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 receive 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 $0.7 million and $1.9 million during the three months ended June 30, 2021 and 2022, respectively, and $1.2 million and $3.8 million during the six months ended June 30, 2021 and 2022, respectively. We recorded the following revenue and expense transactions from certain of these non-controlled entities in our consolidated statements of income (in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2022 2021 2022 Transportation and terminals revenue: BridgeTex, pipeline capacity and storage $ 13.0 $ 11.6 $ 23.7 $ 22.6 Double Eagle, throughput revenue $ 0.8 $ 0.3 $ 1.8 $ 1.0 Saddlehorn, storage revenue $ 0.6 $ 0.6 $ 1.2 $ 1.2 Operating expense: Seabrook, storage lease and ancillary services $ 5.6 $ 4.5 $ 10.9 $ 8.7 Other operating income: Seabrook, gain on sale of air emission credits $ 0.4 $ — $ 0.4 $ — Our consolidated balance sheets reflected the following balances related to transactions with our non-controlled entities (in millions): December 31, 2021 Trade Accounts Receivable Other Accounts Receivable Other Accounts Payable BridgeTex $ 1.2 $ — $ 0.3 Double Eagle $ 0.2 $ — $ — HoustonLink $ — $ — $ 0.2 MVP $ — $ 0.6 $ 2.2 Saddlehorn $ — $ 0.2 $ — Seabrook $ — $ 0.1 $ 3.2 June 30, 2022 Trade Accounts Receivable Other Accounts Receivable Other Accounts Payable BridgeTex $ 4.1 $ — $ — Double Eagle $ 0.1 $ — $ — HoustonLink $ — $ — $ 0.1 MVP $ — $ 0.6 $ — Saddlehorn $ — $ 0.1 $ — Seabrook $ 0.3 $ — $ 1.1 We entered into a long-term terminalling and storage contract with Seabrook for our exclusive use of dedicated tankage that provides our customers with crude oil storage capacity and dock access for crude oil imports and exports on the Texas Gulf Coast (see Note 8 – Leases for more details regarding this lease). The financial results from MVP, Powder Springs and Texas Frontera are included in our refined products segment and the financial results from BridgeTex, Double Eagle, HoustonLink, Saddlehorn and Seabrook are included in our crude oil segment, each as earnings of non-controlled entities. A summary of our investments in non-controlled entities (representing only our proportionate interest) follows (in millions): Investments at December 31, 2021 $ 980.8 Additional investment 0.9 Other adjustments 0.4 Earnings of non-controlled entities: Proportionate share of earnings 62.8 Amortization of excess investment and capitalized interest (0.9) Earnings of non-controlled entities 61.9 Less: Distributions from operations of non-controlled entities 78.9 Investments at June 30, 2022 $ 965.1 |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventory at December 31, 2021 and June 30, 2022 was as follows (in millions): December 31, 2021 June 30, Refined products $ 138.0 $ 153.6 Transmix 72.4 85.9 LPGs 42.0 40.8 Crude oil 25.4 45.0 Additives 3.3 3.7 Total inventory $ 281.1 $ 329.0 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt at December 31, 2021 and June 30, 2022 was as follows (in millions): December 31, June 30, Commercial paper $ 108.0 $ 19.0 3.20% Notes due 2025 250.0 250.0 5.00% Notes due 2026 650.0 650.0 3.25% Notes due 2030 500.0 500.0 6.40% Notes due 2037 250.0 250.0 4.20% Notes due 2042 250.0 250.0 5.15% Notes due 2043 550.0 550.0 4.20% Notes due 2045 250.0 250.0 4.25% Notes due 2046 500.0 500.0 4.20% Notes due 2047 500.0 500.0 4.85% Notes due 2049 500.0 500.0 3.95% Notes due 2050 800.0 800.0 Face value of long-term debt 5,108.0 5,019.0 Unamortized debt issuance costs (1) (37.8) (36.6) Net unamortized debt premium (1) 18.6 18.5 Long-term debt, net $ 5,088.8 $ 5,000.9 (1) Debt issuance costs, note discounts and premiums 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. Other Debt Revolving Credit Facility. At June 30, 2022, the total borrowing capacity under our revolving credit facility maturing in May 2024 was $1.0 billion. Any borrowings outstanding under this facility are classified as long-term debt on our consolidated balance sheets. Borrowings under the facility are unsecured and bear interest at LIBOR plus a spread ranging from 0.875% to 1.500% based on our credit ratings. Additionally, an unused commitment fee is assessed at a rate between 0.075% and 0.200% depending on our credit ratings. The unused commitment fee was 0.125% at June 30, 2022. Borrowings under this facility may be used for general purposes, including capital expenditures. As of December 31, 2021 and June 30, 2022, there were no borrowings outstanding under this facility and $3.5 million was 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. Our revolving credit facility requires us to maintain a specified ratio of consolidated debt to EBITDA (as defined in the credit agreement) of no greater than 5.0 to 1.0. In addition, the revolving credit facility and the indentures under which our senior notes were issued contain covenants that limit our ability to, among other things, incur indebtedness secured by certain liens or encumber our assets, engage in certain sale-leaseback transactions and consolidate, merge or dispose of all or substantially all of our assets. We were in compliance with these covenants as of and during the six months ended June 30, 2022. 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 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Leases | Leases We entered into a long-term terminalling and storage contract with Seabrook for our exclusive use of dedicated tankage that provides our customers with crude oil storage capacity and dock access for crude oil imports and exports on the Texas Gulf Coast. The following tables provide information about our third-party and Seabrook operating leases (in millions): Three Months Ended June 30, 2021 Three Months Ended June 30, 2022 Third-Party Leases Seabrook Lease All Leases Third-Party Leases Seabrook Lease All Leases Total lease expense $ 6.9 $ 5.6 $ 12.5 $ 6.3 $ 4.5 $ 10.8 Six Months Ended June 30, 2021 Six Months Ended June 30, 2022 Third-Party Leases Seabrook Lease All Leases Third-Party Leases Seabrook Lease All Leases Total lease expense $ 13.9 $ 10.9 $ 24.8 $ 12.5 $ 8.7 $ 21.2 December 31, 2021 June 30, 2022 Third-Party Leases Seabrook Lease All Leases Third-Party Leases Seabrook Lease All Leases Current lease liability $ 17.8 $ 8.0 $ 25.8 $ 21.1 $ 9.7 $ 30.8 Long-term lease liability $ 102.8 $ 44.5 $ 147.3 $ 95.5 $ 38.8 $ 134.3 Right-of-use asset $ 121.7 $ 52.5 $ 174.2 $ 113.5 $ 48.6 $ 162.1 |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2022 | |
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, including expense related to discontinued operations, were $2.3 million and $2.5 million for the three months ended June 30, 2021 and 2022, respectively, and $5.4 million and $6.6 million for the six months ended June 30, 2021 and 2022, respectively. In addition, we sponsor two pension plans, including one for non-union employees and one that covers union employees, and a postretirement benefit plan for certain employees. The following disclosures related to these plans include amounts related to discontinued operations. Net periodic benefit expense for the three and six months ended June 30, 2021 and 2022 were as follows (in millions): Three Months Ended Three Months Ended June 30, 2021 June 30, 2022 Pension Other Postretirement Pension Other Postretirement Components of net periodic benefit costs: Service cost $ 6.9 $ 0.1 $ 6.6 $ — Interest cost 2.3 0.1 2.6 0.1 Expected return on plan assets (2.9) — (3.1) — Amortization of prior service credit (0.1) — (0.1) — Amortization of actuarial loss 1.3 0.2 1.1 0.1 Settlement cost 1.5 — — — Net periodic benefit cost $ 9.0 $ 0.4 $ 7.1 $ 0.2 Six Months Ended Six Months Ended June 30, 2021 June 30, 2022 Pension Other Postretirement Pension Other Postretirement Components of net periodic benefit costs: Service cost $ 14.3 $ 0.2 $ 13.7 $ 0.1 Interest cost 4.7 0.2 5.3 0.2 Expected return on plan assets (6.0) — (6.5) — Amortization of prior service credit (0.1) — (0.1) — Amortization of actuarial loss 2.8 0.3 2.2 0.2 Settlement cost 1.5 — — — Net periodic benefit cost $ 17.2 $ 0.7 $ 14.6 $ 0.5 The service component of our net periodic benefit costs is presented in operating expense and G&A expense, and the non-service components are presented in other (income) expense in our consolidated statements of income. The changes in accumulated other comprehensive loss (“AOCL”) related to employee benefit plan assets and benefit obligations for the three and six months ended June 30, 2021 and 2022 were as follows (in millions): Three Months Ended Three Months Ended June 30, 2021 June 30, 2022 Gains (Losses) Included in AOCL Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits Beginning balance $ (116.3) $ (10.3) $ (91.7) $ (10.6) Net actuarial gain (loss) 12.4 (1.6) (1.3) 2.4 Recognition of prior service credit amortization in income (0.1) — (0.1) — Recognition of actuarial loss amortization in income 1.3 0.2 1.1 0.1 Recognition of settlement cost in income 1.5 — — — Ending balance $ (101.2) $ (11.7) $ (92.0) $ (8.1) Six Months Ended Six Months Ended June 30, 2021 June 30, 2022 Gains (Losses) Included in AOCL Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits Beginning balance $ (117.8) $ (10.4) $ (92.8) $ (10.7) Net actuarial gain (loss) 12.4 (1.6) (1.3) 2.4 Recognition of prior service credit amortization in income (0.1) — (0.1) — Recognition of actuarial loss amortization in income 2.8 0.3 2.2 0.2 Recognition of settlement cost in income 1.5 — — — Ending balance $ (101.2) $ (11.7) $ (92.0) $ (8.1) Contributions estimated to be paid into the plans in 2022 are $39.0 million and $0.5 million for the pension plans and other postretirement benefit plan, respectively. |
Long-Term Incentive Plan
Long-Term Incentive Plan | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Long-Term Incentive Plan | Long-Term Incentive Plan The compensation committee of our board administers our long-term incentive plan (“LTIP”) covering certain of our employees and the independent directors of our board. The LTIP primarily consists of phantom units and permits the grant of awards covering an aggregate payout of 13.7 million of our common units. The estimated units remaining available under the LTIP at June 30, 2022 totaled approximately 1.8 million. Equity-based incentive compensation expense for the three and six months ended June 30, 2021 and 2022, primarily recorded as G&A expense on our consolidated statements of income, was as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2022 2021 2022 Performance-based awards $ 2.7 $ 4.6 $ 4.9 $ 12.6 Time-based awards 2.7 3.9 5.2 10.3 Total $ 5.4 $ 8.5 $ 10.1 $ 22.9 On February 9, 2022, 622,986 unit awards were granted pursuant to our LTIP. These awards included both performance-based and time-based awards and have a three-year vesting period that will end on December 31, 2024. Basic and Diluted Net Income Per Common Unit The difference between our actual common units outstanding and our weighted average number of common units outstanding used to calculate net income per common unit is due to the impact of: (i) the phantom units issued to our independent directors, (ii) unit awards granted to retirees or employees of retirement age and (iii) the weighted average effect of units actually issued or repurchased during a period. The difference between the weighted average number of common 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 awards granted pursuant to our LTIP, which have not yet vested in periods where contingent performance metrics have been met. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Commodity Derivatives Our open futures contracts at June 30, 2022 were as follows: Type of Contract/Accounting Methodology Product Represented by the Contract and Associated Barrels Maturity Dates Commodity derivatives contract - Economic hedges 5.1 million barrels of refined products and crude oil Between July 2022 and April 2023 Commodity derivatives contract - Economic hedges 1.5 million barrels of gas liquids Between July 2022 and April 2023 Commodity Derivatives Contracts and Deposits Offsets At December 31, 2021 and June 30, 2022, we had made margin deposits of $46.3 million and $95.5 million, respectively, for our commodity derivatives contracts with our counterparties, which were recorded as current assets under commodity derivatives deposits on our consolidated balance sheets. We have the right to offset the combined fair values of our open derivatives 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 derivatives contracts separately from the related margin deposits on our consolidated balance sheets. Additionally, we have the right to offset the fair values of our derivatives 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 master netting arrangements are provided below as of December 31, 2021 and June 30, 2022 (in millions): 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) As of December 31, 2021 $ (22.3) $ 5.1 $ (17.2) $ 46.3 $ 29.1 As of June 30, 2022 $ (39.7) $ 7.2 $ (32.5) $ 95.5 $ 63.0 (1) Amount represents the maximum loss we would incur if all of our counterparties failed to perform on their derivative contracts. Basis Derivative Agreement During 2019, we entered into a basis derivative agreement with a joint venture co-owner’s affiliate, and, contemporaneously, that affiliate entered into an intrastate transportation services agreement with the joint venture. Settlements under the basis derivative agreement were determined based on the basis differential of crude oil prices at different market locations and a notional volume of 30,000 barrels per day. As a result, we accounted for this agreement as a derivative and recognized the changes in fair value based on forward price curves for crude oil in West Texas and the Houston Gulf Coast in other operating income (expense) in our consolidated statements of income. The liability for this agreement at December 31, 2021 was $1.5 million. Impact of Derivatives on Our Financial Statements Comprehensive Income The changes in derivative activity included in AOCL for the three and six months ended June 30, 2021 and 2022 were as follows (in millions): Three Months Ended Six Months Ended June 30, June 30, Derivative Losses Included in AOCL 2021 2022 2021 2022 Beginning balance $ (54.1) $ (50.6) $ (55.0) $ (51.5) Reclassification of net loss on cash flow hedges to income 0.9 0.9 1.8 1.8 Ending balance $ (53.2) $ (49.7) $ (53.2) $ (49.7) The following is a summary of the effect on our consolidated statements of income for the three and six months ended June 30, 2021 and 2022 of derivatives that were designated as cash flow hedges (in millions): Interest Rate Contracts Location of Loss Reclassified from AOCL into Income Amount of Loss Reclassified from AOCL into Income Three Months Ended June 30, 2021 and 2022 Interest expense $ (0.9) Six Months Ended June 30, 2021 and 2022 Interest expense $ (1.8) As of June 30, 2022, the net loss estimated to be classified to interest expense over the next twelve months from AOCL is approximately $3.5 million. This amount relates to the amortization of losses on interest rate contracts over the life of the related debt instruments. The following table provides a summary of the effect on our consolidated statements of income for the three and six months ended June 30, 2021 and 2022 of derivatives that were not designated as hedging instruments (in millions): Amount of Gain (Loss) Recognized on Derivatives Three Months Ended Six Months Ended Location of Gain (Loss) June 30, June 30, Derivative Instrument 2021 2022 2021 2022 Commodity derivatives contracts Product sales revenue $ (40.4) $ (89.0) $ (93.1) $ (205.4) Commodity derivatives contracts Cost of product sales 6.2 (7.4) 7.6 1.2 Basis derivative agreement Other operating income (expense) (1.2) — (1.9) (2.1) Total $ (35.4) $ (96.4) $ (87.4) $ (206.3) 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 , which are presented on a net basis in our consolidated balance sheets, that were not designated as hedging instruments as of December 31, 2021 and June 30, 2022 (in millions): December 31, 2021 Asset Derivatives Liability Derivatives Derivative Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value Commodity derivatives contracts Commodity derivatives contracts, net $ 5.1 Commodity derivatives contracts, net $ 22.3 Basis derivative agreement Other current assets — Other current liabilities 1.5 Total $ 5.1 Total $ 23.8 June 30, 2022 Asset Derivatives Liability Derivatives Derivative Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value Commodity derivatives contracts Commodity derivatives contracts, net $ 7.2 Commodity derivatives contracts, net $ 39.7 |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2022 | |
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: • Commodity derivatives contracts . These include exchange-traded and over-the-counter derivative contracts related to petroleum products. These contracts are carried at fair value on our consolidated balance sheets. The exchange-traded contracts are valued based on quoted prices in active markets, while the over-the-counter contracts are valued based on observable market data inputs including published commodity pricing data. See Note 11 – Derivative Financial Instruments for further disclosures regarding these contracts. • Basis derivative agreement. During 2019, we entered into a basis derivative agreement with a joint venture co-owner’s affiliate, and, contemporaneously, that affiliate entered into an intrastate transportation services agreement with the joint venture. Settlements under the basis derivative agreement were determined based on the basis differential of crude oil prices at different market locations and a notional volume of 30,000 barrels per day (see Note 11 - Derivative Financial Instruments for further disclosures regarding this agreement). The fair value of this derivative was calculated based on observable market data inputs, including published commodity pricing data and market interest rates. The key inputs in the fair value calculation include the forward price curves for crude oil, the implied forward correlation in crude oil prices between West Texas and the Houston Gulf Coast, and the implied forward volatility for crude oil futures contracts. • Long-term receivables. These include payments receivable under a sales-type leasing arrangement and payments due to us for environmental liability insurance. 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. • Contractual obligations. At June 30, 2022, these primarily included a long-term contractual obligation we entered into in connection with the 2020 sale of three marine terminals to a subsidiary of Buckeye. This obligation requires us to perform certain environmental remediation work on Buckeye’s behalf at the New Haven, Connecticut terminal. This contractual obligation was recorded at fair value on our consolidated balance sheets upon initial recognition and was calculated using our best estimate of potential outcome scenarios to determine our liability for the remediation costs required in this agreement. • Debt. The fair value of our publicly traded notes was based on the prices of those notes at December 31, 2021 and June 30, 2022; 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, 2021 and June 30, 2022 based on the three levels established by ASC 820, Fair Value Measurements and Disclosures (in millions): Assets (Liabilities) Fair Value Measurements as of Carrying Amount Fair Value Quoted Prices in Active Markets Significant Significant Commodity derivatives contracts $ (17.2) $ (17.2) $ (18.6) $ 1.4 $ — Basis derivative agreement $ (1.5) $ (1.5) $ — $ (1.5) $ — Long-term receivables $ 10.1 $ 10.1 $ — $ — $ 10.1 Contractual obligations $ (9.8) $ (9.8) $ — $ — $ (9.8) Debt $ (5,088.8) $ (5,711.5) $ — $ (5,711.5) $ — Assets (Liabilities) Fair Value Measurements as of Carrying Amount Fair Value Quoted Prices in Active Markets Significant Significant Commodity derivatives contracts $ (32.5) $ (32.5) $ (26.9) $ (5.6) $ — Long-term receivables $ 9.3 $ 9.3 $ — $ — $ 9.3 Contractual obligations $ (9.9) $ (9.9) $ — $ — $ (9.9) Debt $ (5,000.9) $ (4,460.2) $ — $ (4,460.2) $ — |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Corpus Christi Terminal Proceeding. On April 11, 2022, the State of Texas, through its Attorney General on behalf of the Texas Commission on Environmental Quality (“TCEQ”), brought an action for alleged violations of the Texas Clean Air Act in connection with a December 2020 fire at our Corpus Christi, Texas terminal. The TCEQ is seeking statutory civil penalties and statutory attorney’s fees over $0.5 million but not more than $1.0 million. While the outcome cannot be predicted with certainty, we believe the ultimate resolution of this matter will not have a material adverse effect on our business. Hurricane Harvey Enforcement Proceeding. In July 2018, we received a Notice of Enforcement letter from the TCEQ alleging two air emission violations at our Galena Park, Texas terminal that occurred during Hurricane Harvey in third quarter 2017. This matter was settled in June 2022 for approximately $0.4 million. Butane Blending Patent Infringement Proceeding. In October 2017, Sunoco Partners Marketing & Terminals L.P. (“Sunoco”) brought an action for patent infringement in the U.S. District Court for the District of Delaware alleging Magellan Midstream Partners, L.P. (“Magellan”) and Powder Springs Logistics, LLC (“Powder Springs”) were infringing patents relating to butane blending at the Powder Springs facility located in Powder Springs, Georgia. Sunoco subsequently submitted pleadings alleging that Magellan was also infringing various patents related to butane blending at eight Magellan facilities, in addition to Powder Springs. Sunoco sought monetary damages, attorneys’ fees and a permanent injunction enjoining Powder Springs from infringing the subject patents. A jury trial concluded on December 6, 2021, at which the jury found Magellan willfully infringed the three patents in suit and awarded damages of approximately $9.4 million against Magellan relating to the eight Magellan facilities at issue. The jury further found that Powder Springs willfully infringed the one patent at issue relating to the Powder Springs facility and awarded approximately $2.8 million against Magellan and Powder Springs relating to that facility. Sunoco requested that the court enhance the damages award based upon the jury’s finding of willfulness, and that the court award additional damages and pre- and post-judgment interest. Magellan and Powder Springs have filed post-trial pleadings opposing Sunoco’s request for enhanced damages and challenging the findings of liability and willfulness. The final determination of the trial court is subject to potential future appeals by either or both parties to the litigation. The amounts we have accrued in relation to the claims are immaterial, and although it is not possible to predict the ultimate outcome, we believe the final resolution of this matter will not have a material adverse effect on our business. Environmental Liabilities Liabilities recognized for estimated environmental costs were $9.8 million at December 31, 2021 and June 30, 2022. 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 included in operating expenses on our consolidated statements of income. Environmental expenses were $0.9 million and $0.6 million for the three months ended June 30, 2021 and 2022, respectively, and $2.0 million and $1.5 million for the six months ended June 30, 2021 and 2022, respectively. Other In first quarter 2020, we entered into a long-term contractual obligation in connection with the sale of three marine terminals to Buckeye. This obligation requires us to perform certain environmental remediation work on Buckeye’s behalf at the New Haven, Connecticut terminal. At December 31, 2021, our balance sheet included a current liability of $0.5 million and a noncurrent liability of $8.9 million, and as of June 30, 2022, our balance sheet included a current liability of $0.2 million and a noncurrent liability of $8.9 million, reflecting the fair values of these obligations. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party TransactionsStacy Methvin is an independent member of our board and also serves as a director of one of our customers. We received tariff, terminalling and other ancillary revenue from this customer of $17.3 million and $14.9 million for the three months ended June 30, 2021 and 2022, respectively, and $28.4 million and $30.0 million for the six months ended June 30, 2021 and 2022, respectively. We recorded receivables of $5.4 million and $6.2 million from this customer at December 31, 2021 and June 30, 2022, respectively. See Note 5 – Investments in Non-Controlled Entities and Note 8 – Leases |
Partners' Capital and Distribut
Partners' Capital and Distributions | 6 Months Ended |
Jun. 30, 2022 | |
Partners' Capital [Abstract] | |
Partners' Capital and Distributions | Partners’ Capital and Distributions Partners ’ Capital Our board authorized the repurchase of up to $1.5 billion of our common units through 2024. The timing, price and actual number of common units repurchased will depend on a number of factors including our expected expansion capital spending needs, excess cash available, balance sheet metrics, legal and regulatory requirements, market conditions and the trading price of our common units. The repurchase program does not obligate us to acquire any particular amount of common units and may be suspended or discontinued at any time. The following table details the changes in the number of our common units outstanding from December 31, 2021 through June 30, 2022: Common units outstanding on December 31, 2021 212,387,990 Units repurchased during 2022 (4,928,091) January 2022—Settlement of employee LTIP awards 200,949 During 2022—Other (1) 23,400 Common units outstanding on June 30, 2022 207,684,248 (1) Common units issued to settle the equity-based retainers paid to certain independent directors of our board. Distributions Distributions we paid during 2021 and 2022 were as follows (in millions, except per unit amounts): Payment Date Per Unit Total Distribution 2/12/2021 $ 1.0275 $ 229.4 5/14/2021 1.0275 229.0 8/13/2021 1.0275 226.6 11/12/2021 1.0375 221.4 Total $ 4.1200 $ 906.4 2/14/2022 $ 1.0375 $ 220.6 5/13/2022 1.0375 219.5 Through 06/30/2022 2.0750 440.1 8/12/2022 (a) 1.0375 215.5 Total $ 3.1125 $ 655.6 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Recognizable events No recognizable events occurred subsequent to June 30, 2022. Non-recognizable events Distribution. In July 2022, our board declared a quarterly distribution of $1.0375 per unit for the period of April 1, 2022 through June 30, 2022. This quarterly distribution will be paid on August 12, 2022 to unitholders of record on August 5, 2022. |
Organization, Description of _2
Organization, Description of Business and Basis Of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [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, 2021, which is derived from our audited financial statements, include all normal and recurring adjustments necessary to present fairly our financial position as of June 30, 2022, the results of operations for the three and six months ended June 30, 2021 and 2022 and cash flows for the six months ended June 30, 2021 and 2022. The results of operations for the six months ended June 30, 2022 are not necessarily indicative of the results to be expected for the full year ending December 31, 2022 for several reasons. Profits from our gas liquids 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 refined products pipeline system, generally trends higher during the summer driving months. Further, the volatility of commodity prices impacts the profits from our commodity activities and 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 have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. 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, 2021. Discontinued Operations On June 8, 2022, we completed the sale of our independent terminals network comprised of 26 refined petroleum products terminals in the southeastern U.S. to Buckeye Partners, L.P. (“Buckeye”) for $446.9 million, including working capital adjustments. The related results of operations, financial position and cash flows have been classified as discontinued operations for all periods presented (see Note 2 – Discontinued Operations and Assets Held for Sale for additional details). Unless indicated otherwise, the information in the Notes to Consolidated Financial Statements relates to continuing operations. |
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 We evaluate new Accounting Standards Codifications (“ASC”) and updates issued by the Financial Accounting Standards Board on an ongoing basis. There are no new accounting pronouncements that we anticipate will have a material impact on our financial statements. |
Discontinued Operations and A_2
Discontinued Operations and Assets Held for Sale (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | Summarized Results of Discontinued Operations The following table provides the summarized results that have been presented as discontinued operations on the consolidated statements of income (in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2022 2021 2022 Transportation and terminals revenue $ 13.7 $ 9.0 $ 26.8 $ 21.1 Product sales revenue 27.7 23.7 44.6 30.0 Total revenue 41.4 32.7 71.4 51.1 Costs and expenses: Operating 3.8 4.2 7.2 8.0 Cost of product sales 17.9 18.3 31.8 28.8 Depreciation, amortization and impairment 3.5 — 7.0 — General and administrative 0.7 0.5 1.3 1.1 Total costs and expenses 25.9 23.0 47.3 37.9 Gain on disposition of assets — (162.4) — (162.4) Income from discontinued operations $ 15.5 $ 172.1 $ 24.1 $ 175.6 Summarized Assets and Liabilities of Discontinued Operations The following table provides the summarized assets and liabilities that were classified as held for sale on the consolidated balance sheet as of December 31, 2021 (in millions). Subsequent to the sale of our independent terminals network on June 8, 2022, no assets or liabilities were classified as held for sale. December 31, 2021 Assets: Trade accounts receivable $ 6.3 Inventory 17.0 Net property, plant and equipment 272.0 Goodwill 2.7 Other assets 1.5 Total assets classified as held for sale $ 299.5 Liabilities: Accounts payable $ 3.7 Accrued product liabilities 8.4 Other liabilities 3.7 Total liabilities classified as held for sale $ 15.8 |
Segment Disclosures (Tables)
Segment Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Business Segment Reporting Information | 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, amortization and impairment 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 June 30, 2021 (in millions) Refined Products Crude Oil Intersegment Total Transportation and terminals revenue $ 337.9 $ 118.7 $ (1.2) $ 455.4 Product sales revenue 149.6 43.4 — 193.0 Affiliate management fee revenue 1.6 3.6 — 5.2 Total revenue 489.1 165.7 (1.2) 653.6 Operating expense 108.2 43.8 (2.9) 149.1 Cost of product sales 125.1 46.7 — 171.8 Other operating (income) expense (3.2) 1.3 — (1.9) Earnings of non-controlled entities (8.2) (32.4) — (40.6) Operating margin 267.2 106.3 1.7 375.2 Depreciation, amortization and impairment expense 34.1 16.5 1.7 52.3 G&A expense 40.3 15.8 — 56.1 Operating profit $ 192.8 $ 74.0 $ — $ 266.8 Three Months Ended June 30, 2022 (in millions) Refined Products Crude Oil Intersegment Total Transportation and terminals revenue $ 349.2 $ 121.4 $ (1.3) $ 469.3 Product sales revenue 291.0 22.7 — 313.7 Affiliate management fee revenue 1.7 3.9 — 5.6 Total revenue 641.9 148.0 (1.3) 788.6 Operating expense 136.3 46.6 (2.8) 180.1 Cost of product sales 260.6 21.7 — 282.3 Other operating (income) expense (3.0) — — (3.0) (Earnings) losses of non-controlled entities 2.0 (28.5) — (26.5) Operating margin 246.0 108.2 1.5 355.7 Depreciation, amortization and impairment expense 39.2 18.1 1.5 58.8 G&A expense 40.3 16.6 — 56.9 Operating profit $ 166.5 $ 73.5 $ — $ 240.0 Six Months Ended June 30, 2021 (in millions) Refined Products Crude Oil Intersegment Total Transportation and terminals revenue $ 635.5 $ 234.9 $ (3.0) $ 867.4 Product sales revenue 334.1 72.6 — 406.7 Affiliate management fee revenue 3.2 7.4 — 10.6 Total revenue 972.8 314.9 (3.0) 1,284.7 Operating expense 199.7 83.0 (6.3) 276.4 Cost of product sales 265.9 76.8 — 342.7 Other operating (income) expense (3.5) 2.0 — (1.5) Earnings of non-controlled entities (17.4) (62.3) — (79.7) Operating margin 528.1 215.4 3.3 746.8 Depreciation, amortization and impairment expense 70.2 33.4 3.3 106.9 G&A expense 73.3 28.8 — 102.1 Operating profit $ 384.6 $ 153.2 $ — $ 537.8 Six Months Ended June 30, 2022 (in millions) Refined Products Crude Oil Intersegment Total Transportation and terminals revenue $ 658.7 $ 236.1 $ (2.6) $ 892.2 Product sales revenue 532.6 27.2 — 559.8 Affiliate management fee revenue 3.5 7.8 — 11.3 Total revenue 1,194.8 271.1 (2.6) 1,463.3 Operating expense 224.5 85.4 (5.6) 304.3 Cost of product sales 493.7 32.0 — 525.7 Other operating (income) expense (3.1) 2.1 — (1.0) Earnings of non-controlled entities (1.7) (60.2) — (61.9) Operating margin 481.4 211.8 3.0 696.2 Depreciation, amortization and impairment expense 78.8 34.7 3.0 116.5 G&A expense 86.0 33.7 — 119.7 Operating profit $ 316.6 $ 143.4 $ — $ 460.0 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from External Customers by Products and Services | The following tables provide details of our revenue disaggregated by key activities that comprise our performance obligations by operating segment (in millions): Three Months Ended June 30, 2021 Refined Products Crude Oil Intersegment Eliminations Total Transportation $ 232.1 $ 59.8 $ — $ 291.9 Terminalling 25.2 3.2 — 28.4 Storage 44.6 29.7 (1.2) 73.1 Ancillary services 32.0 7.6 — 39.6 Lease revenue 4.0 18.4 — 22.4 Transportation and terminals revenue 337.9 118.7 (1.2) 455.4 Product sales revenue 149.6 43.4 — 193.0 Affiliate management fee revenue 1.6 3.6 — 5.2 Total revenue 489.1 165.7 (1.2) 653.6 Revenue not under the guidance of ASC 606, Revenue from Contracts with Customers: Lease revenue (4.0) (18.4) — (22.4) (Gains) losses from futures contracts included in product sales revenue 34.3 6.1 — 40.4 Affiliate management fee revenue (1.6) (3.6) — (5.2) Total revenue from contracts with customers under ASC 606 $ 517.8 $ 149.8 $ (1.2) $ 666.4 Three Months Ended June 30, 2022 Refined Products Crude Oil Intersegment Eliminations Total Transportation $ 249.3 $ 62.1 $ — $ 311.4 Terminalling 29.1 12.8 — 41.9 Storage 38.0 24.6 (1.3) 61.3 Ancillary services 26.3 3.5 — 29.8 Lease revenue 6.5 18.4 — 24.9 Transportation and terminals revenue 349.2 121.4 (1.3) 469.3 Product sales revenue 291.0 22.7 — 313.7 Affiliate management fee revenue 1.7 3.9 — 5.6 Total revenue 641.9 148.0 (1.3) 788.6 Revenue not under the guidance of ASC 606, Revenue from Contracts with Customers: Lease revenue (6.5) (18.4) — (24.9) (Gains) losses from futures contracts included in product sales revenue 86.2 2.8 — 89.0 Affiliate management fee revenue (1.7) (3.9) — (5.6) Total revenue from contracts with customers under ASC 606 $ 719.9 $ 128.5 $ (1.3) $ 847.1 Six Months Ended June 30, 2021 Refined Products Crude Oil Intersegment Eliminations Total Transportation $ 425.5 $ 114.8 $ — $ 540.3 Terminalling 47.8 9.3 — 57.1 Storage 93.6 59.0 (3.0) 149.6 Ancillary services 60.5 15.6 — 76.1 Lease revenue 8.1 36.2 — 44.3 Transportation and terminals revenue 635.5 234.9 (3.0) 867.4 Product sales revenue 334.1 72.6 — 406.7 Affiliate management fee revenue 3.2 7.4 — 10.6 Total revenue 972.8 314.9 (3.0) 1,284.7 Revenue not under the guidance of ASC 606, Revenue from Contracts with Customers : Lease revenue (8.1) (36.2) — (44.3) (Gains) losses from futures contracts included in product sales revenue 81.6 11.5 — 93.1 Affiliate management fee revenue (3.2) (7.4) — (10.6) Total revenue from contracts with customers under ASC 606 $ 1,043.1 $ 282.8 $ (3.0) $ 1,322.9 Six Months Ended June 30, 2022 Refined Products Crude Oil Intersegment Eliminations Total Transportation $ 462.6 $ 117.1 $ — $ 579.7 Terminalling 52.4 19.1 — 71.5 Storage 77.5 51.6 (2.6) 126.5 Ancillary services 53.9 11.4 — 65.3 Lease revenue 12.3 36.9 — 49.2 Transportation and terminals revenue 658.7 236.1 (2.6) 892.2 Product sales revenue 532.6 27.2 — 559.8 Affiliate management fee revenue 3.5 7.8 — 11.3 Total revenue 1,194.8 271.1 (2.6) 1,463.3 Revenue not under the guidance of ASC 606, Revenue from Contracts with Customers : Lease revenue (12.3) (36.9) — (49.2) (Gains) losses from futures contracts included in product sales revenue 194.4 11.0 — 205.4 Affiliate management fee revenue (3.5) (7.8) — (11.3) Total revenue from contracts with customers under ASC 606 $ 1,373.4 $ 237.4 $ (2.6) $ 1,608.2 |
Contract with Customer, Asset and Liability | The following table summarizes our accounts receivable, contract assets and contract liabilities resulting from contracts with customers (in millions): December 31, 2021 June 30, 2022 Accounts receivable from contracts with customers $ 134.8 $ 140.2 Contract assets $ 12.5 $ 10.6 Contract liabilities $ 100.1 $ 92.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | The following table provides the aggregate amount of the transaction price allocated to our unfulfilled performance obligations (“UPOs”) as of June 30, 2022 by operating segment, including the range of years remaining on our contracts with customers and an estimate of revenues expected to be recognized over the next 12 months (dollars in millions): Refined Products Crude Oil Total Balances at June 30, 2022 $ 1,697.0 $ 954.1 $ 2,651.1 Remaining terms 1 - 16 years 1 - 10 years Estimated revenues from UPOs to be recognized in the next 12 months $ 349.2 $ 232.1 $ 581.3 |
Investments in Non-Controlled_2
Investments in Non-Controlled Entities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Our equity investments in non-controlled entities at June 30, 2022 were comprised of: Entity Ownership Interest BridgeTex Pipeline Company, LLC (“BridgeTex”) 30% Double Eagle Pipeline LLC (“Double Eagle”) 50% HoustonLink Pipeline Company, LLC (“HoustonLink”) 50% MVP Terminalling, LLC (“MVP”) 25% Powder Springs Logistics, LLC (“Powder Springs”) 50% Saddlehorn Pipeline Company, LLC (“Saddlehorn”) 30% Seabrook Logistics, LLC (“Seabrook”) 50% Texas Frontera, LLC (“Texas Frontera”) 50% We recorded the following revenue and expense transactions from certain of these non-controlled entities in our consolidated statements of income (in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2022 2021 2022 Transportation and terminals revenue: BridgeTex, pipeline capacity and storage $ 13.0 $ 11.6 $ 23.7 $ 22.6 Double Eagle, throughput revenue $ 0.8 $ 0.3 $ 1.8 $ 1.0 Saddlehorn, storage revenue $ 0.6 $ 0.6 $ 1.2 $ 1.2 Operating expense: Seabrook, storage lease and ancillary services $ 5.6 $ 4.5 $ 10.9 $ 8.7 Other operating income: Seabrook, gain on sale of air emission credits $ 0.4 $ — $ 0.4 $ — Our consolidated balance sheets reflected the following balances related to transactions with our non-controlled entities (in millions): December 31, 2021 Trade Accounts Receivable Other Accounts Receivable Other Accounts Payable BridgeTex $ 1.2 $ — $ 0.3 Double Eagle $ 0.2 $ — $ — HoustonLink $ — $ — $ 0.2 MVP $ — $ 0.6 $ 2.2 Saddlehorn $ — $ 0.2 $ — Seabrook $ — $ 0.1 $ 3.2 June 30, 2022 Trade Accounts Receivable Other Accounts Receivable Other Accounts Payable BridgeTex $ 4.1 $ — $ — Double Eagle $ 0.1 $ — $ — HoustonLink $ — $ — $ 0.1 MVP $ — $ 0.6 $ — Saddlehorn $ — $ 0.1 $ — Seabrook $ 0.3 $ — $ 1.1 A summary of our investments in non-controlled entities (representing only our proportionate interest) follows (in millions): Investments at December 31, 2021 $ 980.8 Additional investment 0.9 Other adjustments 0.4 Earnings of non-controlled entities: Proportionate share of earnings 62.8 Amortization of excess investment and capitalized interest (0.9) Earnings of non-controlled entities 61.9 Less: Distributions from operations of non-controlled entities 78.9 Investments at June 30, 2022 $ 965.1 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory at December 31, 2021 and June 30, 2022 was as follows (in millions): December 31, 2021 June 30, Refined products $ 138.0 $ 153.6 Transmix 72.4 85.9 LPGs 42.0 40.8 Crude oil 25.4 45.0 Additives 3.3 3.7 Total inventory $ 281.1 $ 329.0 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Consolidated Debt | Long-term debt at December 31, 2021 and June 30, 2022 was as follows (in millions): December 31, June 30, Commercial paper $ 108.0 $ 19.0 3.20% Notes due 2025 250.0 250.0 5.00% Notes due 2026 650.0 650.0 3.25% Notes due 2030 500.0 500.0 6.40% Notes due 2037 250.0 250.0 4.20% Notes due 2042 250.0 250.0 5.15% Notes due 2043 550.0 550.0 4.20% Notes due 2045 250.0 250.0 4.25% Notes due 2046 500.0 500.0 4.20% Notes due 2047 500.0 500.0 4.85% Notes due 2049 500.0 500.0 3.95% Notes due 2050 800.0 800.0 Face value of long-term debt 5,108.0 5,019.0 Unamortized debt issuance costs (1) (37.8) (36.6) Net unamortized debt premium (1) 18.6 18.5 Long-term debt, net $ 5,088.8 $ 5,000.9 (1) Debt issuance costs, note discounts and premiums are being amortized or accreted to the applicable notes over the respective lives of those notes. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Operating Leases | The following tables provide information about our third-party and Seabrook operating leases (in millions): Three Months Ended June 30, 2021 Three Months Ended June 30, 2022 Third-Party Leases Seabrook Lease All Leases Third-Party Leases Seabrook Lease All Leases Total lease expense $ 6.9 $ 5.6 $ 12.5 $ 6.3 $ 4.5 $ 10.8 Six Months Ended June 30, 2021 Six Months Ended June 30, 2022 Third-Party Leases Seabrook Lease All Leases Third-Party Leases Seabrook Lease All Leases Total lease expense $ 13.9 $ 10.9 $ 24.8 $ 12.5 $ 8.7 $ 21.2 December 31, 2021 June 30, 2022 Third-Party Leases Seabrook Lease All Leases Third-Party Leases Seabrook Lease All Leases Current lease liability $ 17.8 $ 8.0 $ 25.8 $ 21.1 $ 9.7 $ 30.8 Long-term lease liability $ 102.8 $ 44.5 $ 147.3 $ 95.5 $ 38.8 $ 134.3 Right-of-use asset $ 121.7 $ 52.5 $ 174.2 $ 113.5 $ 48.6 $ 162.1 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Consolidated Net Periodic Benefit Costs | Net periodic benefit expense for the three and six months ended June 30, 2021 and 2022 were as follows (in millions): Three Months Ended Three Months Ended June 30, 2021 June 30, 2022 Pension Other Postretirement Pension Other Postretirement Components of net periodic benefit costs: Service cost $ 6.9 $ 0.1 $ 6.6 $ — Interest cost 2.3 0.1 2.6 0.1 Expected return on plan assets (2.9) — (3.1) — Amortization of prior service credit (0.1) — (0.1) — Amortization of actuarial loss 1.3 0.2 1.1 0.1 Settlement cost 1.5 — — — Net periodic benefit cost $ 9.0 $ 0.4 $ 7.1 $ 0.2 Six Months Ended Six Months Ended June 30, 2021 June 30, 2022 Pension Other Postretirement Pension Other Postretirement Components of net periodic benefit costs: Service cost $ 14.3 $ 0.2 $ 13.7 $ 0.1 Interest cost 4.7 0.2 5.3 0.2 Expected return on plan assets (6.0) — (6.5) — Amortization of prior service credit (0.1) — (0.1) — Amortization of actuarial loss 2.8 0.3 2.2 0.2 Settlement cost 1.5 — — — Net periodic benefit cost $ 17.2 $ 0.7 $ 14.6 $ 0.5 |
Schedule of Amounts Recognized in Other Comprehensive Loss | The changes in accumulated other comprehensive loss (“AOCL”) related to employee benefit plan assets and benefit obligations for the three and six months ended June 30, 2021 and 2022 were as follows (in millions): Three Months Ended Three Months Ended June 30, 2021 June 30, 2022 Gains (Losses) Included in AOCL Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits Beginning balance $ (116.3) $ (10.3) $ (91.7) $ (10.6) Net actuarial gain (loss) 12.4 (1.6) (1.3) 2.4 Recognition of prior service credit amortization in income (0.1) — (0.1) — Recognition of actuarial loss amortization in income 1.3 0.2 1.1 0.1 Recognition of settlement cost in income 1.5 — — — Ending balance $ (101.2) $ (11.7) $ (92.0) $ (8.1) Six Months Ended Six Months Ended June 30, 2021 June 30, 2022 Gains (Losses) Included in AOCL Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits Beginning balance $ (117.8) $ (10.4) $ (92.8) $ (10.7) Net actuarial gain (loss) 12.4 (1.6) (1.3) 2.4 Recognition of prior service credit amortization in income (0.1) — (0.1) — Recognition of actuarial loss amortization in income 2.8 0.3 2.2 0.2 Recognition of settlement cost in income 1.5 — — — Ending balance $ (101.2) $ (11.7) $ (92.0) $ (8.1) |
Long-Term Incentive Plan (Table
Long-Term Incentive Plan (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Equity-Based Incentive Compensation Expense | Equity-based incentive compensation expense for the three and six months ended June 30, 2021 and 2022, primarily recorded as G&A expense on our consolidated statements of income, was as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2021 2022 2021 2022 Performance-based awards $ 2.7 $ 4.6 $ 4.9 $ 12.6 Time-based awards 2.7 3.9 5.2 10.3 Total $ 5.4 $ 8.5 $ 10.1 $ 22.9 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule Of NYMEX Contracts And Butane Price Swap Purchase Agreements | Our open futures contracts at June 30, 2022 were as follows: Type of Contract/Accounting Methodology Product Represented by the Contract and Associated Barrels Maturity Dates Commodity derivatives contract - Economic hedges 5.1 million barrels of refined products and crude oil Between July 2022 and April 2023 Commodity derivatives contract - Economic hedges 1.5 million barrels of gas liquids Between July 2022 and April 2023 |
Derivatives and Offset Amounts | A schedule of the derivative amounts we have offset and the deposit amounts we could offset under master netting arrangements are provided below as of December 31, 2021 and June 30, 2022 (in millions): 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) As of December 31, 2021 $ (22.3) $ 5.1 $ (17.2) $ 46.3 $ 29.1 As of June 30, 2022 $ (39.7) $ 7.2 $ (32.5) $ 95.5 $ 63.0 (1) Amount represents the maximum loss we would incur if all of our counterparties failed to perform on their derivative contracts. |
Derivatives and Hedging-Cash Flow Hedges | The changes in derivative activity included in AOCL for the three and six months ended June 30, 2021 and 2022 were as follows (in millions): Three Months Ended Six Months Ended June 30, June 30, Derivative Losses Included in AOCL 2021 2022 2021 2022 Beginning balance $ (54.1) $ (50.6) $ (55.0) $ (51.5) Reclassification of net loss on cash flow hedges to income 0.9 0.9 1.8 1.8 Ending balance $ (53.2) $ (49.7) $ (53.2) $ (49.7) The following is a summary of the effect on our consolidated statements of income for the three and six months ended June 30, 2021 and 2022 of derivatives that were designated as cash flow hedges (in millions): Interest Rate Contracts Location of Loss Reclassified from AOCL into Income Amount of Loss Reclassified from AOCL into Income Three Months Ended June 30, 2021 and 2022 Interest expense $ (0.9) Six Months Ended June 30, 2021 and 2022 Interest expense $ (1.8) |
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 six months ended June 30, 2021 and 2022 of derivatives that were not designated as hedging instruments (in millions): Amount of Gain (Loss) Recognized on Derivatives Three Months Ended Six Months Ended Location of Gain (Loss) June 30, June 30, Derivative Instrument 2021 2022 2021 2022 Commodity derivatives contracts Product sales revenue $ (40.4) $ (89.0) $ (93.1) $ (205.4) Commodity derivatives contracts Cost of product sales 6.2 (7.4) 7.6 1.2 Basis derivative agreement Other operating income (expense) (1.2) — (1.9) (2.1) Total $ (35.4) $ (96.4) $ (87.4) $ (206.3) |
Derivatives and Hedging-Designated | The following tables provide a summary of the fair value of derivatives , which are presented on a net basis in our consolidated balance sheets, that were not designated as hedging instruments as of December 31, 2021 and June 30, 2022 (in millions): December 31, 2021 Asset Derivatives Liability Derivatives Derivative Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value Commodity derivatives contracts Commodity derivatives contracts, net $ 5.1 Commodity derivatives contracts, net $ 22.3 Basis derivative agreement Other current assets — Other current liabilities 1.5 Total $ 5.1 Total $ 23.8 June 30, 2022 Asset Derivatives Liability Derivatives Derivative Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value Commodity derivatives contracts Commodity derivatives contracts, net $ 7.2 Commodity derivatives contracts, net $ 39.7 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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, 2021 and June 30, 2022 based on the three levels established by ASC 820, Fair Value Measurements and Disclosures (in millions): Assets (Liabilities) Fair Value Measurements as of Carrying Amount Fair Value Quoted Prices in Active Markets Significant Significant Commodity derivatives contracts $ (17.2) $ (17.2) $ (18.6) $ 1.4 $ — Basis derivative agreement $ (1.5) $ (1.5) $ — $ (1.5) $ — Long-term receivables $ 10.1 $ 10.1 $ — $ — $ 10.1 Contractual obligations $ (9.8) $ (9.8) $ — $ — $ (9.8) Debt $ (5,088.8) $ (5,711.5) $ — $ (5,711.5) $ — Assets (Liabilities) Fair Value Measurements as of Carrying Amount Fair Value Quoted Prices in Active Markets Significant Significant Commodity derivatives contracts $ (32.5) $ (32.5) $ (26.9) $ (5.6) $ — Long-term receivables $ 9.3 $ 9.3 $ — $ — $ 9.3 Contractual obligations $ (9.9) $ (9.9) $ — $ — $ (9.9) Debt $ (5,000.9) $ (4,460.2) $ — $ (4,460.2) $ — |
Partners' Capital and Distrib_2
Partners' Capital and Distributions (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Partners' Capital [Abstract] | |
Schedule of Capital Units | The following table details the changes in the number of our common units outstanding from December 31, 2021 through June 30, 2022: Common units outstanding on December 31, 2021 212,387,990 Units repurchased during 2022 (4,928,091) January 2022—Settlement of employee LTIP awards 200,949 During 2022—Other (1) 23,400 Common units outstanding on June 30, 2022 207,684,248 (1) Common units issued to settle the equity-based retainers paid to certain independent directors of our board. |
Schedule of Distributions | Distributions we paid during 2021 and 2022 were as follows (in millions, except per unit amounts): Payment Date Per Unit Total Distribution 2/12/2021 $ 1.0275 $ 229.4 5/14/2021 1.0275 229.0 8/13/2021 1.0275 226.6 11/12/2021 1.0375 221.4 Total $ 4.1200 $ 906.4 2/14/2022 $ 1.0375 $ 220.6 5/13/2022 1.0375 219.5 Through 06/30/2022 2.0750 440.1 8/12/2022 (a) 1.0375 215.5 Total $ 3.1125 $ 655.6 |
Organization, Description of _3
Organization, Description of Business and Basis of Presentation (Narrative) (Details) barrel in Millions, $ in Millions | Jun. 08, 2022 USD ($) terminal | Jun. 30, 2022 barrel terminal mi |
Independent Terminals Network | ||
Organization and Description of Business [Line Items] | ||
Proceeds from Sale of Property Held-for-sale | $ | $ 446.9 | |
Independent Terminals Network | Discontinued Operations, Held-for-sale | ||
Organization and Description of Business [Line Items] | ||
Number of independent terminals | terminal | 26 | |
Refined Products | ||
Organization and Description of Business [Line Items] | ||
Pipeline length | mi | 9,800 | |
Number of pipeline terminals | terminal | 54 | |
Number of marine terminals | terminal | 2 | |
Number of marine terminals, owned through joint venture | terminal | 1 | |
Crude Oil | ||
Organization and Description of Business [Line Items] | ||
Pipeline length | mi | 2,200 | |
Storage capacity | barrel | 39 | |
Contracted storage | barrel | 29 | |
Pipeline length - wholly owned | mi | 1,000 | |
Storage capacity - wholly owned | barrel | 31 | |
Contracted storage - wholly owned | barrel | 25 |
Discontinued Operations and A_3
Discontinued Operations and Assets Held for Sale - Disposal Groups, Including Discontinued Operations (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 09, 2022 | Dec. 31, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Total revenue | $ 32,700,000 | $ 41,400,000 | $ 51,100,000 | $ 71,400,000 | ||
Costs and expenses: | ||||||
Operating | 4,200,000 | 3,800,000 | 8,000,000 | 7,200,000 | ||
Cost of product sales | 18,300,000 | 17,900,000 | 28,800,000 | 31,800,000 | ||
Depreciation, amortization and impairment | 0 | 3,500,000 | 0 | 7,000,000 | ||
General and administrative | 500,000 | 700,000 | 1,100,000 | 1,300,000 | ||
Total costs and expenses | 23,000,000 | 25,900,000 | 37,900,000 | 47,300,000 | ||
Gain on disposition of assets | (162,400,000) | 0 | (162,400,000) | 0 | ||
Income from discontinued operations (including gain on disposition of assets of $162.4 million in June 2022) | 172,100,000 | 15,500,000 | 175,600,000 | 24,100,000 | ||
Assets: | ||||||
Trade accounts receivable | $ 6,300,000 | |||||
Inventory | 17,000,000 | |||||
Net property, plant and equipment | 272,000,000 | |||||
Goodwill | 2,700,000 | |||||
Other assets | 1,500,000 | |||||
Total assets classified as held for sale | $ 0 | 299,500,000 | ||||
Liabilities: | ||||||
Accounts payable | 3,700,000 | |||||
Accrued product liabilities | 8,400,000 | |||||
Other liabilities | 3,700,000 | |||||
Total liabilities classified as held for sale | $ 0 | $ 15,800,000 | ||||
Transportation and terminals revenue | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Total revenue | 9,000,000 | 13,700,000 | 21,100,000 | 26,800,000 | ||
Product sales revenue | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Total revenue | $ 23,700,000 | $ 27,700,000 | $ 30,000,000 | $ 44,600,000 |
Segment Disclosures - Schedule
Segment Disclosures - Schedule Of Business Segment Reporting Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 788.6 | $ 653.6 | $ 1,463.3 | $ 1,284.7 |
Operating expense | 180.1 | 149.1 | 304.3 | 276.4 |
Cost of product sales | 282.3 | 171.8 | 525.7 | 342.7 |
Other operating (income) expense | (3) | (1.9) | (1) | (1.5) |
Earnings of non-controlled entities | (26.5) | (40.6) | (61.9) | (79.7) |
Operating margin | 355.7 | 375.2 | 696.2 | 746.8 |
Depreciation, amortization and impairment | 58.8 | 52.3 | 116.5 | 106.9 |
G&A expense | 56.9 | 56.1 | 119.7 | 102.1 |
Operating profit | 240 | 266.8 | 460 | 537.8 |
Operating Segments | Refined Products | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 641.9 | 489.1 | 1,194.8 | 972.8 |
Operating expense | 136.3 | 108.2 | 224.5 | 199.7 |
Cost of product sales | 260.6 | 125.1 | 493.7 | 265.9 |
Other operating (income) expense | (3) | (3.2) | (3.1) | (3.5) |
Earnings of non-controlled entities | 2 | (8.2) | (1.7) | (17.4) |
Operating margin | 246 | 267.2 | 481.4 | 528.1 |
Depreciation, amortization and impairment | 39.2 | 34.1 | 78.8 | 70.2 |
G&A expense | 40.3 | 40.3 | 86 | 73.3 |
Operating profit | 166.5 | 192.8 | 316.6 | 384.6 |
Operating Segments | Crude Oil | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 148 | 165.7 | 271.1 | 314.9 |
Operating expense | 46.6 | 43.8 | 85.4 | 83 |
Cost of product sales | 21.7 | 46.7 | 32 | 76.8 |
Other operating (income) expense | 0 | 1.3 | 2.1 | 2 |
Earnings of non-controlled entities | (28.5) | (32.4) | (60.2) | (62.3) |
Operating margin | 108.2 | 106.3 | 211.8 | 215.4 |
Depreciation, amortization and impairment | 18.1 | 16.5 | 34.7 | 33.4 |
G&A expense | 16.6 | 15.8 | 33.7 | 28.8 |
Operating profit | 73.5 | 74 | 143.4 | 153.2 |
Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | (1.3) | (1.2) | (2.6) | (3) |
Operating expense | (2.8) | (2.9) | (5.6) | (6.3) |
Cost of product sales | 0 | 0 | 0 | 0 |
Other operating (income) expense | 0 | 0 | 0 | 0 |
Earnings of non-controlled entities | 0 | 0 | 0 | 0 |
Operating margin | 1.5 | 1.7 | 3 | 3.3 |
Depreciation, amortization and impairment | 1.5 | 1.7 | 3 | 3.3 |
G&A expense | 0 | 0 | 0 | 0 |
Operating profit | 0 | 0 | 0 | 0 |
Transportation and terminals revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 469.3 | 455.4 | 892.2 | 867.4 |
Transportation and terminals revenue | Operating Segments | Refined Products | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 349.2 | 337.9 | 658.7 | 635.5 |
Transportation and terminals revenue | Operating Segments | Crude Oil | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 121.4 | 118.7 | 236.1 | 234.9 |
Transportation and terminals revenue | Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | (1.3) | (1.2) | (2.6) | (3) |
Product sales revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 313.7 | 193 | 559.8 | 406.7 |
Product sales revenue | Operating Segments | Refined Products | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 291 | 149.6 | 532.6 | 334.1 |
Product sales revenue | Operating Segments | Crude Oil | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 22.7 | 43.4 | 27.2 | 72.6 |
Product sales revenue | Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Affiliate management fee revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 5.6 | 5.2 | 11.3 | 10.6 |
Affiliate management fee revenue | Operating Segments | Refined Products | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 1.7 | 1.6 | 3.5 | 3.2 |
Affiliate management fee revenue | Operating Segments | Crude Oil | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 3.9 | 3.6 | 7.8 | 7.4 |
Affiliate management fee revenue | Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 0 | $ 0 | $ 0 | $ 0 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 788.6 | $ 653.6 | $ 1,463.3 | $ 1,284.7 |
Lease revenue | (24.9) | (22.4) | (49.2) | (44.3) |
(Gains) losses from futures contracts included in product sales revenue | 89 | 40.4 | 205.4 | 93.1 |
Affiliate management fee revenue | (5.6) | (5.2) | (11.3) | (10.6) |
Total revenue from contracts with customers under ASC 606 | 847.1 | 666.4 | 1,608.2 | 1,322.9 |
Transportation and terminals revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 469.3 | 455.4 | 892.2 | 867.4 |
Product sales revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 313.7 | 193 | 559.8 | 406.7 |
Affiliate management fee revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 5.6 | 5.2 | 11.3 | 10.6 |
Operating Segments | Refined Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 641.9 | 489.1 | 1,194.8 | 972.8 |
Lease revenue | (6.5) | (4) | (12.3) | (8.1) |
(Gains) losses from futures contracts included in product sales revenue | 86.2 | 34.3 | 194.4 | 81.6 |
Affiliate management fee revenue | (1.7) | (1.6) | (3.5) | (3.2) |
Total revenue from contracts with customers under ASC 606 | 719.9 | 517.8 | 1,373.4 | 1,043.1 |
Operating Segments | Crude Oil | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 148 | 165.7 | 271.1 | 314.9 |
Lease revenue | (18.4) | (18.4) | (36.9) | (36.2) |
(Gains) losses from futures contracts included in product sales revenue | 2.8 | 6.1 | 11 | 11.5 |
Affiliate management fee revenue | (3.9) | (3.6) | (7.8) | (7.4) |
Total revenue from contracts with customers under ASC 606 | 128.5 | 149.8 | 237.4 | 282.8 |
Operating Segments | Transportation and terminals revenue | Refined Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 349.2 | 337.9 | 658.7 | 635.5 |
Operating Segments | Transportation and terminals revenue | Crude Oil | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 121.4 | 118.7 | 236.1 | 234.9 |
Operating Segments | Product sales revenue | Refined Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 291 | 149.6 | 532.6 | 334.1 |
Operating Segments | Product sales revenue | Crude Oil | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 22.7 | 43.4 | 27.2 | 72.6 |
Operating Segments | Affiliate management fee revenue | Refined Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1.7 | 1.6 | 3.5 | 3.2 |
Operating Segments | Affiliate management fee revenue | Crude Oil | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 3.9 | 3.6 | 7.8 | 7.4 |
Intersegment Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | (1.3) | (1.2) | (2.6) | (3) |
Lease revenue | 0 | 0 | 0 | 0 |
(Gains) losses from futures contracts included in product sales revenue | 0 | 0 | 0 | 0 |
Affiliate management fee revenue | 0 | 0 | 0 | 0 |
Total revenue from contracts with customers under ASC 606 | (1.3) | (1.2) | (2.6) | (3) |
Intersegment Eliminations | Transportation and terminals revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | (1.3) | (1.2) | (2.6) | (3) |
Intersegment Eliminations | Product sales revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Intersegment Eliminations | Affiliate management fee revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Transferred over Time | Transportation and terminals revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 469.3 | 455.4 | 892.2 | 867.4 |
Transferred over Time | Transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 311.4 | 291.9 | 579.7 | 540.3 |
Transferred over Time | Terminalling | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 41.9 | 28.4 | 71.5 | 57.1 |
Transferred over Time | Storage | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 61.3 | 73.1 | 126.5 | 149.6 |
Transferred over Time | Ancillary services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 29.8 | 39.6 | 65.3 | 76.1 |
Transferred over Time | Lease revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 24.9 | 22.4 | 49.2 | 44.3 |
Transferred over Time | Operating Segments | Transportation and terminals revenue | Refined Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 349.2 | 337.9 | 658.7 | 635.5 |
Transferred over Time | Operating Segments | Transportation and terminals revenue | Crude Oil | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 121.4 | 118.7 | 236.1 | 234.9 |
Transferred over Time | Operating Segments | Transportation | Refined Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 249.3 | 232.1 | 462.6 | 425.5 |
Transferred over Time | Operating Segments | Transportation | Crude Oil | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 62.1 | 59.8 | 117.1 | 114.8 |
Transferred over Time | Operating Segments | Terminalling | Refined Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 29.1 | 25.2 | 52.4 | 47.8 |
Transferred over Time | Operating Segments | Terminalling | Crude Oil | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 12.8 | 3.2 | 19.1 | 9.3 |
Transferred over Time | Operating Segments | Storage | Refined Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 38 | 44.6 | 77.5 | 93.6 |
Transferred over Time | Operating Segments | Storage | Crude Oil | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 24.6 | 29.7 | 51.6 | 59 |
Transferred over Time | Operating Segments | Ancillary services | Refined Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 26.3 | 32 | 53.9 | 60.5 |
Transferred over Time | Operating Segments | Ancillary services | Crude Oil | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 3.5 | 7.6 | 11.4 | 15.6 |
Transferred over Time | Operating Segments | Lease revenue | Refined Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 6.5 | 4 | 12.3 | 8.1 |
Transferred over Time | Operating Segments | Lease revenue | Crude Oil | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 18.4 | 18.4 | 36.9 | 36.2 |
Transferred over Time | Intersegment Eliminations | Transportation and terminals revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | (1.3) | (1.2) | (2.6) | (3) |
Transferred over Time | Intersegment Eliminations | Transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Transferred over Time | Intersegment Eliminations | Terminalling | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Transferred over Time | Intersegment Eliminations | Storage | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | (1.3) | (1.2) | (2.6) | (3) |
Transferred over Time | Intersegment Eliminations | Ancillary services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Transferred over Time | Intersegment Eliminations | Lease revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Transferred at Point in Time | Product sales revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 313.7 | 193 | 559.8 | 406.7 |
Transferred at Point in Time | Operating Segments | Product sales revenue | Refined Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 291 | 149.6 | 532.6 | 334.1 |
Transferred at Point in Time | Operating Segments | Product sales revenue | Crude Oil | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 22.7 | 43.4 | 27.2 | 72.6 |
Transferred at Point in Time | Intersegment Eliminations | Product sales revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 0 | $ 0 | $ 0 | $ 0 |
Revenue - Assets and Liabilitie
Revenue - Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable from contracts with customers | $ 140.2 | $ 134.8 |
Contract assets | 10.6 | 12.5 |
Contract liabilities | $ 92.8 | $ 100.1 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue, revenue recognized | $ 1.4 | $ 69 |
Revenue - Performance Obligatio
Revenue - Performance Obligations in Next 12 Months (Details) $ in Millions | Jun. 30, 2022 USD ($) |
Segment Reporting Information [Line Items] | |
Revenue, remaining performance obligation | $ 2,651.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Segment Reporting Information [Line Items] | |
Revenue, remaining performance obligation | $ 581.3 |
Remaining terms | 12 months |
Refined Products | |
Segment Reporting Information [Line Items] | |
Revenue, remaining performance obligation | $ 1,697 |
Refined Products | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Segment Reporting Information [Line Items] | |
Revenue, remaining performance obligation | 349.2 |
Crude Oil | |
Segment Reporting Information [Line Items] | |
Revenue, remaining performance obligation | 954.1 |
Crude Oil | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Segment Reporting Information [Line Items] | |
Revenue, remaining performance obligation | $ 232.1 |
Minimum | Refined Products | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Segment Reporting Information [Line Items] | |
Remaining terms | 1 year |
Minimum | Crude Oil | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Segment Reporting Information [Line Items] | |
Remaining terms | 1 year |
Maximum | Refined Products | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Segment Reporting Information [Line Items] | |
Remaining terms | 16 years |
Maximum | Crude Oil | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Segment Reporting Information [Line Items] | |
Remaining terms | 10 years |
Investments in Non-Controlled_3
Investments in Non-Controlled Entities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||||
Total revenue | $ 788.6 | $ 653.6 | $ 1,463.3 | $ 1,284.7 | |
Operating | 180.1 | 149.1 | 304.3 | 276.4 | |
Other operating income (expense) | 3 | 1.9 | 1 | 1.5 | |
Trade accounts receivable | 140.3 | 140.3 | $ 135.2 | ||
Other accounts receivable | 39.5 | 39.5 | 34.6 | ||
Change in Equity Method Investments [Roll Forward] | |||||
Investments, beginning balance | 980.8 | ||||
Additional investment | 0.9 | ||||
Other adjustments | 0.4 | ||||
Proportionate share of earnings | 62.8 | ||||
Amortization of excess investment and capitalized interest | (0.9) | ||||
Earnings of non-controlled entities | 26.5 | 40.6 | 61.9 | 79.7 | |
Distributions from operations of non-controlled entities | 78.9 | 94.5 | |||
Investments, ending balance | 965.1 | 965.1 | |||
Transportation and terminals revenue | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total revenue | 469.3 | 455.4 | 892.2 | 867.4 | |
Equity Method Investee | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Cost reimbursements | $ 1.9 | 0.7 | $ 3.8 | 1.2 | |
BridgeTex | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in equity method investment | 30% | 30% | |||
BridgeTex | Equity Method Investee | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Trade accounts receivable | $ 4.1 | $ 4.1 | 1.2 | ||
Other accounts receivable | 0 | 0 | 0 | ||
Other Accounts Payable | 0 | 0 | 0.3 | ||
BridgeTex | Equity Method Investee | Transportation and terminals revenue | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total revenue | $ 11.6 | 13 | $ 22.6 | 23.7 | |
Double Eagle | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in equity method investment | 50% | 50% | |||
Double Eagle | Equity Method Investee | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Trade accounts receivable | $ 0.1 | $ 0.1 | 0.2 | ||
Other accounts receivable | 0 | 0 | 0 | ||
Other Accounts Payable | 0 | 0 | 0 | ||
Double Eagle | Equity Method Investee | Transportation and terminals revenue | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total revenue | $ 0.3 | 0.8 | $ 1 | 1.8 | |
HoustonLink | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in equity method investment | 50% | 50% | |||
HoustonLink | Equity Method Investee | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Trade accounts receivable | $ 0 | $ 0 | 0 | ||
Other accounts receivable | 0 | 0 | 0 | ||
Other Accounts Payable | $ 0.1 | $ 0.1 | 0.2 | ||
MVP | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in equity method investment | 25% | 25% | |||
MVP | Equity Method Investee | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Trade accounts receivable | $ 0 | $ 0 | 0 | ||
Other accounts receivable | 0.6 | 0.6 | 0.6 | ||
Other Accounts Payable | $ 0 | $ 0 | 2.2 | ||
Powder Springs Logistics, LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in equity method investment | 50% | 50% | |||
Saddlehorn | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in equity method investment | 30% | 30% | |||
Saddlehorn | Equity Method Investee | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Trade accounts receivable | $ 0 | $ 0 | 0 | ||
Other accounts receivable | 0.1 | 0.1 | 0.2 | ||
Other Accounts Payable | 0 | 0 | 0 | ||
Saddlehorn | Equity Method Investee | Transportation and terminals revenue | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total revenue | $ 0.6 | 0.6 | $ 1.2 | 1.2 | |
Seabrook | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in equity method investment | 50% | 50% | |||
Seabrook | Equity Method Investee | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Operating | $ 4.5 | 5.6 | $ 8.7 | 10.9 | |
Other operating income (expense) | 0 | $ 0.4 | 0 | $ 0.4 | |
Trade accounts receivable | 0.3 | 0.3 | 0 | ||
Other accounts receivable | 0 | 0 | 0.1 | ||
Other Accounts Payable | $ 1.1 | $ 1.1 | $ 3.2 | ||
Texas Frontera LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in equity method investment | 50% | 50% |
Inventory (Details)
Inventory (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Refined products | $ 153.6 | $ 138 |
Transmix | 85.9 | 72.4 |
LPGs | 40.8 | 42 |
Crude oil | 45 | 25.4 |
Additives | 3.7 | 3.3 |
Total inventory | $ 329 | $ 281.1 |
Debt - Consolidated Debt (Detai
Debt - Consolidated Debt (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Face value of long-term debt | $ 5,019 | $ 5,108 |
Unamortized debt issuance costs | (36.6) | (37.8) |
Net unamortized debt premium | 18.5 | 18.6 |
Long-term debt, net | 5,000.9 | 5,088.8 |
Commercial paper | ||
Debt Instrument [Line Items] | ||
Face value of long-term debt | $ 19 | 108 |
3.20% Notes due 2025 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 3.20% | |
Face value of long-term debt | $ 250 | 250 |
5.00% Notes due 2026 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 5% | |
Face value of long-term debt | $ 650 | 650 |
3.25% Notes due 2030 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 3.25% | |
Face value of long-term debt | $ 500 | 500 |
6.40% Notes due 2037 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 6.40% | |
Face value of long-term debt | $ 250 | 250 |
4.20% Notes due 2042 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 4.20% | |
Face value of long-term debt | $ 250 | 250 |
5.15% Notes due 2043 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 5.15% | |
Face value of long-term debt | $ 550 | 550 |
4.20% Notes due 2045 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 4.20% | |
Face value of long-term debt | $ 250 | 250 |
4.25% Notes due 2046 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 4.25% | |
Face value of long-term debt | $ 500 | 500 |
4.20% Notes due 2047 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 4.20% | |
Face value of long-term debt | $ 500 | 500 |
4.85% Notes due 2049 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 4.85% | |
Face value of long-term debt | $ 500 | 500 |
3.95% Notes due 2050 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 3.95% | |
Face value of long-term debt | $ 800 | $ 800 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 6 Months Ended | |
Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Debt Instrument [Line Items] | ||
Face value of long-term debt | $ 5,019,000,000 | $ 5,108,000,000 |
Maximum | ||
Debt Instrument [Line Items] | ||
Debt to EBITDA ratio | 5 | |
Commercial paper | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 | |
Face value of long-term debt | $ 19,000,000 | 108,000,000 |
Weighted average interest rate | 0.80% | |
Commercial paper | Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument, term | 397 days | |
Senior Notes | Revolving Credit Facility | ||
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 | $ 3,500,000 | $ 3,500,000 |
Senior Notes | Revolving Credit Facility | Minimum | ||
Debt Instrument [Line Items] | ||
Unused commitment fee | 0.075% | |
Senior Notes | Revolving Credit Facility | Maximum | ||
Debt Instrument [Line Items] | ||
Unused commitment fee | 0.20% | |
London Interbank Offered Rate (LIBOR) | Senior Notes | Revolving Credit Facility | Minimum | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 0.875% | |
London Interbank Offered Rate (LIBOR) | Senior Notes | Revolving Credit Facility | Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.50% |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||||
Total lease expense | $ 10.8 | $ 12.5 | $ 21.2 | $ 24.8 | |
Current lease liability | 30.8 | 30.8 | $ 25.8 | ||
Long-term lease liability | 134.3 | 134.3 | 147.3 | ||
Right-of-use asset | 162.1 | 162.1 | 174.2 | ||
Third-Party Leases | |||||
Related Party Transaction [Line Items] | |||||
Total lease expense | 6.3 | 6.9 | 12.5 | 13.9 | |
Current lease liability | 21.1 | 21.1 | 17.8 | ||
Long-term lease liability | 95.5 | 95.5 | 102.8 | ||
Right-of-use asset | 113.5 | 113.5 | 121.7 | ||
Seabrook | Equity Method Investee | |||||
Related Party Transaction [Line Items] | |||||
Total lease expense | 4.5 | $ 5.6 | 8.7 | $ 10.9 | |
Current lease liability | 9.7 | 9.7 | 8 | ||
Long-term lease liability | 38.8 | 38.8 | 44.5 | ||
Right-of-use asset | $ 48.6 | $ 48.6 | $ 52.5 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 USD ($) plan | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) plan | Jun. 30, 2021 USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined contribution plan cost | $ | $ 2.5 | $ 2.3 | $ 6.6 | $ 5.4 |
Number of sponsored pension plans | plan | 2 | 2 | ||
Number of sponsored pension plans, non-union employees | plan | 1 | 1 | ||
Number of sponsored pension plans, union employees | plan | 1 | 1 | ||
Pension Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Expected future employer contributions | $ | $ 39 | $ 39 | ||
Other Postretirement Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Expected future employer contributions | $ | $ 0.5 | $ 0.5 |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule Of Consolidated Net Periodic Benefit Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Pension Benefits | ||||
Components of net periodic benefit costs: | ||||
Service cost | $ 6.6 | $ 6.9 | $ 13.7 | $ 14.3 |
Interest cost | 2.6 | 2.3 | 5.3 | 4.7 |
Expected return on plan assets | (3.1) | (2.9) | (6.5) | (6) |
Amortization of prior service credit | (0.1) | (0.1) | (0.1) | (0.1) |
Amortization of actuarial loss | 1.1 | 1.3 | 2.2 | 2.8 |
Settlement cost | 0 | 1.5 | 0 | 1.5 |
Net periodic benefit cost | 7.1 | 9 | 14.6 | 17.2 |
Other Postretirement Benefits | ||||
Components of net periodic benefit costs: | ||||
Service cost | 0 | 0.1 | 0.1 | 0.2 |
Interest cost | 0.1 | 0.1 | 0.2 | 0.2 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service credit | 0 | 0 | 0 | 0 |
Amortization of actuarial loss | 0.1 | 0.2 | 0.2 | 0.3 |
Settlement cost | 0 | 0 | 0 | 0 |
Net periodic benefit cost | $ 0.2 | $ 0.4 | $ 0.5 | $ 0.7 |
Employee Benefit Plans - Sche_2
Employee Benefit Plans - Schedule of Amounts Recognized in Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Changes in AOCL [Roll Forward] | ||||
Beginning balance | $ (1,802.7) | $ (2,297) | $ (1,899.8) | $ (2,303.8) |
Net actuarial gain (loss) | 1.1 | 10.8 | 1.1 | 10.8 |
Recognition of prior service credit amortization in income | (0.1) | (0.1) | (0.1) | (0.1) |
Recognition of actuarial loss amortization in income | 1.2 | 1.5 | 2.4 | 3.1 |
Recognition of settlement cost in income | 0 | 1.5 | 0 | 1.5 |
Ending balance | (1,759.4) | (2,285.8) | (1,759.4) | (2,285.8) |
Pension Benefits | ||||
Changes in AOCL [Roll Forward] | ||||
Net actuarial gain (loss) | (1.3) | 12.4 | (1.3) | 12.4 |
Recognition of prior service credit amortization in income | (0.1) | (0.1) | (0.1) | (0.1) |
Recognition of actuarial loss amortization in income | 1.1 | 1.3 | 2.2 | 2.8 |
Recognition of settlement cost in income | 0 | 1.5 | 0 | 1.5 |
Other Postretirement Benefits | ||||
Changes in AOCL [Roll Forward] | ||||
Net actuarial gain (loss) | 2.4 | (1.6) | 2.4 | (1.6) |
Recognition of prior service credit amortization in income | 0 | 0 | 0 | 0 |
Recognition of actuarial loss amortization in income | 0.1 | 0.2 | 0.2 | 0.3 |
Recognition of settlement cost in income | 0 | 0 | 0 | 0 |
Accumulated Other Comprehensive Loss | Pension Benefits | ||||
Changes in AOCL [Roll Forward] | ||||
Beginning balance | (91.7) | (116.3) | (92.8) | (117.8) |
Ending balance | (92) | (101.2) | (92) | (101.2) |
Accumulated Other Comprehensive Loss | Other Postretirement Benefits | ||||
Changes in AOCL [Roll Forward] | ||||
Beginning balance | (10.6) | (10.3) | (10.7) | (10.4) |
Ending balance | $ (8.1) | $ (11.7) | $ (8.1) | $ (11.7) |
Long-Term Incentive Plan - Narr
Long-Term Incentive Plan - Narrative (Details) - shares | Feb. 09, 2022 | Jun. 30, 2022 |
Share-Based Payment Arrangement [Abstract] | ||
Limited partners' capital account, units authorized for issuance (in shares) | 13,700,000 | |
Limited partner unitholders, units remaining available (in shares) | 1,800,000 | |
Share-based compensation arrangement by share-based payment award, grants in period (in shares) | 622,986 | |
Vesting period | 3 years |
Long-Term Incentive Plan - Equi
Long-Term Incentive Plan - Equity-Based Incentive Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||||
Allocation of LTIP expense on consolidated statements of income | $ 8.5 | $ 5.4 | $ 22.9 | $ 10.1 |
Performance-based awards | ||||
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||||
Allocation of LTIP expense on consolidated statements of income | 4.6 | 2.7 | 12.6 | 4.9 |
Time-based awards | ||||
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||||
Allocation of LTIP expense on consolidated statements of income | $ 3.9 | $ 2.7 | $ 10.3 | $ 5.2 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Schedule Of NYMEX Contracts And Butane Price Swap Purchase Agreements (Details) barrel in Millions | Jun. 30, 2022 barrel |
Economic Hedges | |
Derivative [Line Items] | |
Nonmonetary notional amount | 5.1 |
Economic Hedges Futures | |
Derivative [Line Items] | |
Nonmonetary notional amount | 1.5 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Narrative (Details) $ in Millions | Jun. 30, 2022 USD ($) barrel | Dec. 31, 2021 USD ($) |
Derivative [Line Items] | ||
Margin deposits | $ 95.5 | $ 46.3 |
Cash flow hedge loss to be reclassified within twelve months | $ (3.5) | |
Energy Related Derivative | ||
Derivative [Line Items] | ||
Nonmonetary notional amount | barrel | 30,000 | |
Derivative liability | $ 1.5 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of Derivative Offset Amounts (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Commodity derivatives deposits | $ 95.5 | $ 46.3 |
Exchange Traded | ||
Derivative [Line Items] | ||
Gross Amounts of Recognized Liabilities | (39.7) | (22.3) |
Gross Amounts of Assets Offset in the Consolidated Balance Sheets | 7.2 | 5.1 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheets | (32.5) | (17.2) |
Commodity derivatives deposits | 95.5 | 46.3 |
Net Asset Amount | $ 63 | $ 29.1 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Derivatives and Hedging-Cash Flow Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative Gains Included in AOCI [Roll Forward] | ||||
Beginning balance | $ 1,802.7 | $ 2,297 | $ 1,899.8 | $ 2,303.8 |
Reclassification of net loss on cash flow hedges to income | 0.9 | 0.9 | 1.8 | 1.8 |
Ending balance | 1,759.4 | 2,285.8 | 1,759.4 | 2,285.8 |
Derivative Losses Included in AOCL | ||||
Derivative Gains Included in AOCI [Roll Forward] | ||||
Beginning balance | (50.6) | (54.1) | (51.5) | (55) |
Ending balance | $ (49.7) | $ (53.2) | $ (49.7) | $ (53.2) |
Derivative Financial Instrume_7
Derivative Financial Instruments - Derivatives and Hedging Effect on Consolidated Statements of Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative [Line Items] | ||||
Reclassification of net loss on cash flow hedges to income | $ (0.9) | $ (0.9) | $ (1.8) | $ (1.8) |
Interest Rate Contract | Cash Flow Hedging | Designated as Hedging Instrument | Interest Expense | ||||
Derivative [Line Items] | ||||
Reclassification of net loss on cash flow hedges to income | $ (0.9) | $ (0.9) | $ (1.8) | $ (1.8) |
Derivative Financial Instrume_8
Derivative Financial Instruments - Derivatives And Hedging-Overall-Subsequent Measurement (Details) - Not Designated as Hedging Instrument - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized on Derivatives | $ (96.4) | $ (35.4) | $ (206.3) | $ (87.4) |
Commodity Contract | Product sales revenue | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized on Derivatives | (89) | (40.4) | (205.4) | (93.1) |
Commodity Contract | Cost of product sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized on Derivatives | (7.4) | 6.2 | 1.2 | 7.6 |
Energy Related Derivative | Other operating income (expense) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized on Derivatives | $ 0 | $ (1.2) | $ (2.1) | $ (1.9) |
Derivative Financial Instrume_9
Derivative Financial Instruments - Derivatives and Hedging - Designated (Details) - Not Designated as Hedging Instrument - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | $ 5.1 | |
Derivative liability, fair value | 23.8 | |
Commodity Contract | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | $ 7.2 | 5.1 |
Commodity Contract | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | $ 39.7 | 22.3 |
Energy Related Derivative | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 0 | |
Energy Related Derivative | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | $ 1.5 |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) | 3 Months Ended | 6 Months Ended |
Mar. 31, 2020 terminal | Jun. 30, 2022 barrel terminal | |
Derivative [Line Items] | ||
Number of marine terminals sold | terminal | 3 | 3 |
Energy Related Derivative | ||
Derivative [Line Items] | ||
Nonmonetary notional amount | barrel | 30,000 |
Fair Value - Schedule Of Carryi
Fair Value - Schedule Of Carrying Amounts And Fair Values Of Financial Assets/Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Energy Related Derivative | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | $ (1.5) | |
Fair Value, Inputs, Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term receivables | $ 0 | 0 |
Contractual obligations | 0 | 0 |
Debt | 0 | 0 |
Fair Value, Inputs, Level 1 | Commodity Contract | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | (26.9) | (18.6) |
Fair Value, Inputs, Level 1 | Energy Related Derivative | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | 0 | |
Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term receivables | 0 | 0 |
Contractual obligations | 0 | 0 |
Debt | (4,460.2) | (5,711.5) |
Fair Value, Inputs, Level 2 | Commodity Contract | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | (5.6) | 1.4 |
Fair Value, Inputs, Level 2 | Energy Related Derivative | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | (1.5) | |
Fair Value, Inputs, Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term receivables | 9.3 | 10.1 |
Contractual obligations | (9.9) | (9.8) |
Debt | 0 | 0 |
Fair Value, Inputs, Level 3 | Commodity Contract | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | 0 | 0 |
Fair Value, Inputs, Level 3 | Energy Related Derivative | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | 0 | |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term receivables | 9.3 | 10.1 |
Contractual obligations | (9.9) | (9.8) |
Debt | (5,000.9) | (5,088.8) |
Carrying Amount | Commodity Contract | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | (32.5) | (17.2) |
Carrying Amount | Energy Related Derivative | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | (1.5) | |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term receivables | 9.3 | 10.1 |
Contractual obligations | (9.9) | (9.8) |
Debt | (4,460.2) | (5,711.5) |
Fair Value | Commodity Contract | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | $ (32.5) | (17.2) |
Fair Value | Energy Related Derivative | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liability | $ (1.5) |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||||
Dec. 06, 2021 USD ($) patent facility | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2020 terminal | Jun. 30, 2022 USD ($) terminal | Jun. 30, 2021 USD ($) | Apr. 11, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jul. 31, 2018 USD ($) | Oct. 31, 2017 facility | |
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, estimate of possible loss | $ 0.5 | |||||||||
Liabilities recognized for estimated environmental costs | $ 9.8 | $ 9.8 | $ 9.8 | |||||||
Environmental expenses | 0.6 | $ 0.9 | $ 1.5 | $ 2 | ||||||
Number of marine terminals sold | terminal | 3 | 3 | ||||||||
Powder Springs Logistics, LLC | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | 100 | $ 100 | ||||||||
Performance Guarantee | Other current liabilities | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Contractual obligations | 0.2 | 0.2 | 0.5 | |||||||
Performance Guarantee | Other Noncurrent Liabilities | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Contractual obligations | $ 8.9 | $ 8.9 | $ 8.9 | |||||||
Powder Springs Logistics, LLC | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Interest in equity method investment | 50% | 50% | ||||||||
Powder Springs Logistics, LLC | Guarantee of Indebtedness of Others | Equity Method Investee | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Contractual obligations | $ 0.8 | $ 0.8 | ||||||||
Interest in equity method investment | 50% | 50% | ||||||||
Guarantor obligations, maximum exposure, undiscounted | $ 50 | $ 50 | ||||||||
Settled Litigation | Unfavorable Regulatory Action | Sunoco v.s. Magellan | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Alleged patent infringement, number of facilities | facility | 8 | |||||||||
Patents found infringed, number | patent | 3 | |||||||||
Damages awarded | $ 9.4 | |||||||||
Patents found infringed, number of facilities | facility | 8 | |||||||||
Settled Litigation | Unfavorable Regulatory Action | Powder Springs Logistics, LLC | Sunoco v.s. Magellan | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Patents found infringed, number | patent | 1 | |||||||||
Damages awarded | $ 2.8 | |||||||||
Maximum | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, estimate of possible loss | $ 1 | $ 0.4 |
Related Party Transactions (Det
Related Party Transactions (Details) - Director - Methvin Company - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||||
Other revenues from transactions with related party | $ 14.9 | $ 17.3 | $ 30 | $ 28.4 | |
Accounts receivable, related parties, current | $ 6.2 | $ 6.2 | $ 5.4 |
Partners' Capital and Distrib_3
Partners' Capital and Distributions - Narrative (Details) $ in Billions | Jun. 30, 2022 USD ($) |
Partners' Capital [Abstract] | |
Stock repurchase program, authorized amount | $ 1.5 |
Partners' Capital and Distrib_4
Partners' Capital and Distributions - Schedule of Capital Units (Details) | 6 Months Ended |
Jun. 30, 2022 shares | |
Increase (Decrease) in Partners' Capital [Roll Forward] | |
Limited partner units outstanding, beginning balance (in shares) | 212,387,990 |
Units repurchased (in shares) | (4,928,091) |
Limited partner units outstanding, ending balance (in shares) | 207,684,248 |
Management | |
Increase (Decrease) in Partners' Capital [Roll Forward] | |
Units issued (in shares) | 200,949 |
Director | |
Increase (Decrease) in Partners' Capital [Roll Forward] | |
Units issued (in shares) | 23,400 |
Partners' Capital and Distrib_5
Partners' Capital and Distributions - Schedule Of Distributions (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | 12 Months Ended | ||||||||
Aug. 12, 2022 | May 13, 2022 | Feb. 14, 2022 | Nov. 12, 2021 | Aug. 13, 2021 | May 14, 2021 | Feb. 12, 2021 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Distribution Made to Limited Partner [Line Items] | ||||||||||
Cash distribution per unit (in dollars per share) | $ 1.0375 | $ 1.0375 | $ 1.0375 | $ 1.0275 | $ 1.0275 | $ 1.0275 | $ 2.0750 | $ 4.1200 | ||
Total cash distribution to limited partners | $ 219.5 | $ 220.6 | $ 221.4 | $ 226.6 | $ 229 | $ 229.4 | $ 440.1 | $ 906.4 | ||
Scenario, Forecast | ||||||||||
Distribution Made to Limited Partner [Line Items] | ||||||||||
Cash distribution per unit (in dollars per share) | $ 1.0375 | $ 3.1125 | ||||||||
Total cash distribution to limited partners | $ 215.5 | $ 655.6 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | Dec. 31, 2022 | Aug. 12, 2022 | Jul. 28, 2022 | Jun. 30, 2022 | May 13, 2022 | Feb. 14, 2022 | Dec. 31, 2021 | Nov. 12, 2021 | Aug. 13, 2021 | May 14, 2021 | Feb. 12, 2021 |
Subsequent Event [Line Items] | |||||||||||
Cash distribution per unit (in dollars per share) | $ 2.0750 | $ 1.0375 | $ 1.0375 | $ 4.1200 | $ 1.0375 | $ 1.0275 | $ 1.0275 | $ 1.0275 | |||
Scenario, Forecast | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Cash distribution per unit (in dollars per share) | $ 3.1125 | $ 1.0375 | |||||||||
Subsequent Event | Scenario, Forecast | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Cash distribution per unit (in dollars per share) | $ 1.0375 |