Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 2-May-14 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'MARTIN MIDSTREAM PARTNERS LP | ' |
Entity Central Index Key | '0001176334 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 27,039,432 |
Entity Well-known Seasoned Issuer | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
CONSOLIDATED_AND_CONDENSED_BAL
CONSOLIDATED AND CONDENSED BALANCE SHEETS (Unaudited) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash | $4,371 | $16,542 |
Accounts and other receivables, less allowance for doubtful accounts of $2,129 and $2,492, respectively | 133,579 | 163,855 |
Product exchange receivables | 901 | 2,727 |
Inventories | 94,771 | 94,902 |
Due from affiliates | 16,448 | 12,099 |
Other current assets | 7,734 | 7,353 |
Total current assets | 257,804 | 297,478 |
Property, plant and equipment, at cost | 946,784 | 929,183 |
Accumulated depreciation | -314,352 | -304,808 |
Property, plant and equipment, net | 632,432 | 624,375 |
Goodwill | 23,802 | 23,802 |
Investment in unconsolidated entities | 129,336 | 128,662 |
Debt issuance costs, net | 15,190 | 15,659 |
Other assets, net | 9,048 | 7,943 |
Total Assets | 1,067,612 | 1,097,919 |
Liabilities and Partners’ Capital | ' | ' |
Trade and other accounts payable | 128,149 | 142,951 |
Product exchange payables | 17,504 | 9,595 |
Due to affiliates | 3,044 | 2,596 |
Income taxes payable | 1,504 | 1,204 |
Other accrued liabilities | 15,565 | 20,242 |
Total current liabilities | 165,766 | 176,588 |
Long-term debt and capital lease obligations, less current installments | 643,772 | 658,695 |
Other long-term obligations | 1,981 | 2,219 |
Total liabilities | 811,519 | 837,502 |
Commitments and contingencies | ' | ' |
Partners’ capital | 256,093 | 260,417 |
Total Liabilities and Partners' Capital | $1,067,612 | $1,097,919 |
CONSOLIDATED_AND_CONDENSED_BAL1
CONSOLIDATED AND CONDENSED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Accounts and other receivables, allowance for doubtful accounts | $2,129 | $2,492 |
CONSOLIDATED_AND_CONDENSED_STA
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Revenues: | ' | ' | ||
Terminalling and storage | $31,801 | [1] | $28,891 | [1] |
Marine transportation | 23,410 | [1] | 24,980 | [1] |
Sulfur services | 3,037 | 3,001 | ||
Product sales: | ' | ' | ||
Natural gas services | 333,337 | [1] | 259,109 | [1] |
Sulfur services | 51,170 | [1] | 67,384 | [1] |
Terminalling and storage | 54,273 | [1] | 50,321 | [1] |
Total product sales | 438,780 | [1] | 376,814 | [1] |
Total revenues | 497,028 | 433,686 | ||
Cost of products sold: (excluding depreciation and amortization) | ' | ' | ||
Natural gas services | 320,698 | [1] | 248,778 | [1] |
Sulfur services | 37,853 | [1] | 52,797 | [1] |
Terminalling and storage | 48,029 | [1] | 43,815 | [1] |
Total cost of products sold (excluding depreciation and amortization) | 406,580 | 345,390 | ||
Expenses: | ' | ' | ||
Operating expenses | 43,896 | [1] | 43,360 | [1] |
Selling, general and administrative | 8,606 | [1] | 7,030 | [1] |
Depreciation and amortization | 13,992 | 11,893 | ||
Total costs and expenses | 473,074 | 407,673 | ||
Other operating (expense) income | -45 | 372 | ||
Operating income | 23,909 | 26,385 | ||
Other income (expense): | ' | ' | ||
Equity in loss of unconsolidated entities | -296 | -374 | ||
Interest expense | -11,451 | -9,058 | ||
Other, net | -67 | -9 | ||
Total other expense | -11,814 | -9,441 | ||
Net income before taxes | 12,095 | 16,944 | ||
Income tax expense | -300 | -307 | ||
Net income | 11,795 | 16,637 | ||
Less general partner's interest in net income | -236 | -333 | ||
Less income allocable to unvested restricted units | -32 | -43 | ||
Limited partners' interest in net income | $11,527 | $16,261 | ||
Net income per unit attributable to limited partners - basic (in dollars per unit) | $0.43 | $0.61 | ||
Weighted average limited partner units - basic (in units) | 26,571,666 | 26,560,654 | ||
Net income per unit attributable to limited partners - diluted (in dollars per unit) | $0.43 | $0.61 | ||
Weighted average limited partner units - diluted (in units) | 26,605,000 | 26,569,000 | ||
[1] | Related Party Transactions Shown Above - Revenues: Terminalling and Storage $18,010 and $17,328, Marine Transportation $5,849 and $6,843, Product Sales $1,892 and $1,209 for the three months ended March 31, 2014 and 2013 , respectively. Costs and Expenses: Cost of products sold: (excluding depreciation and amortization) - Natural gas services $8,453 and $8,556, Sulfur services $4,865 and $4,534, Terminalling and storage $9,844 and $11,961, Expenses: Operating expenses $18,239 and $17,974, Selling, general and administrative $5,384 and $4,418 for the three months ended March 31, 2014 and 2013, respectively. |
CONSOLIDATED_AND_CONDENSED_STA1
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues: | ' | ' |
Terminalling and storage | $18,010 | $17,328 |
Marine transportation | 5,849 | 6,843 |
Product Sales | 1,892 | 1,209 |
Cost of products sold: (excluding depreciation and amortization) | ' | ' |
Natural gas services | 8,453 | 8,556 |
Sulfur services | 4,865 | 4,534 |
Terminalling and storage | 9,844 | 11,961 |
Expenses: | ' | ' |
Operating expenses | 18,239 | 17,974 |
Selling, general and administrative | $5,384 | $4,418 |
CONSOLIDATED_AND_CONDENSED_STA2
CONSOLIDATED AND CONDENSED STATEMENTS OF CAPITAL (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Increase (Decrease) in Partners' Capital [Roll Forward] | ' | ' |
Beginning Balance | $260,417 | $357,962 |
Net income | 11,795 | 16,637 |
Issuance of common units | 5,235 | ' |
General partner contribution | 114 | 37 |
Cash distributions | -21,370 | -20,957 |
Unit-based compensation | 179 | 256 |
Purchase of treasury units | -277 | ' |
Ending Balance | 256,093 | 353,935 |
Limited Partner [Member] | Common Limited [Member] | ' | ' |
Increase (Decrease) in Partners' Capital [Roll Forward] | ' | ' |
Beginning Balance (in units) | 26,625,026 | 26,566,776 |
Beginning Balance | 254,028 | 349,490 |
Net income | 11,559 | 16,304 |
Issuance of common units (in units) | 132,580 | ' |
Issuance of common units | 5,235 | ' |
Issuance of restricted units (in units) | 6,400 | 57,750 |
Forfeiture of restricted units (in units) | -2,750 | ' |
Cash distributions | -20,898 | -20,501 |
Unit-based compensation | 179 | 256 |
Purchase of treasury units (in units) | -6,400 | ' |
Purchase of treasury units | -277 | ' |
Ending Balance (in units) | 26,754,856 | 26,624,526 |
Ending Balance | 249,826 | 345,549 |
General Partner [Member] | ' | ' |
Increase (Decrease) in Partners' Capital [Roll Forward] | ' | ' |
Beginning Balance | 6,389 | 8,472 |
Net income | 236 | 333 |
General partner contribution | 114 | 37 |
Cash distributions | -472 | -456 |
Ending Balance | $6,267 | $8,386 |
CONSOLIDATED_AND_CONDENSED_STA3
CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $11,795 | $16,637 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 13,992 | 11,893 |
Amortization of deferred debt issuance costs | 810 | 1,269 |
Amortization of debt discount | 77 | 76 |
Loss (gain) on sale of property, plant and equipment | 45 | -372 |
Equity in loss of unconsolidated entities | 296 | 374 |
Unit-based compensation | 179 | 256 |
Other | 0 | 6 |
Change in current assets and liabilities, excluding effects of acquisitions and dispositions: | ' | ' |
Accounts and other receivables | 27,801 | 56,639 |
Product exchange receivables | 1,826 | -2,625 |
Inventories | 131 | 25,494 |
Due from affiliates | -4,349 | -25,635 |
Other current assets | -381 | -1,046 |
Trade and other accounts payable | -19,635 | -24,429 |
Product exchange payables | 7,909 | 8,445 |
Due to affiliates | 448 | 2,394 |
Income taxes payable | 300 | 484 |
Other accrued liabilities | -4,677 | 4,185 |
Change in other non-current assets and liabilities | -43 | 26 |
Net cash provided by continuing operating activities | 36,524 | 74,071 |
Net cash used in discontinued operating activities | 0 | -8,678 |
Net cash provided by operating activities | 36,524 | 65,393 |
Cash flows from investing activities: | ' | ' |
Payments for property, plant and equipment | -16,642 | -14,715 |
Acquisitions | 0 | -50,801 |
Payments for plant turnaround costs | -2,164 | 0 |
Proceeds from sale of property, plant and equipment | 245 | 3,610 |
Proceeds from involuntary conversion of property, plant and equipment | 2,475 | 0 |
Investment in unconsolidated subsidiaries | 0 | -15,000 |
Return of investments from unconsolidated entities | 225 | 525 |
Contributions to unconsolidated entities | -1,195 | -9,365 |
Net cash used in investing activities | -17,056 | -85,746 |
Cash flows from financing activities: | ' | ' |
Payments of long-term debt | -91,000 | -373,000 |
Payments of notes payable and capital lease obligations | 0 | -81 |
Proceeds from long-term debt | 76,000 | 418,000 |
Net proceeds from issuance of common units | 5,235 | 0 |
General partner contribution | 114 | 37 |
Purchase of treasury units | -277 | 0 |
Payment of debt issuance costs | -341 | -8,761 |
Cash distributions paid | -21,370 | -20,957 |
Net cash (used in) provided by financing activities | -31,639 | 15,238 |
Net decrease in cash | -12,171 | -5,115 |
Cash at beginning of period | 16,542 | 5,162 |
Cash at end of period | 4,371 | 47 |
Non-cash additions to property, plant and equipment | $4,833 | $0 |
General
General | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
General | ' |
General | |
Martin Midstream Partners L.P. (the “Partnership”) is a publicly traded limited partnership with a diverse set of operations focused primarily in the United States “U.S.” Gulf Coast region. Its four primary business lines include: terminalling and storage services for petroleum products and by-products including the refining, blending and packaging of finished lubricants; natural gas services, including liquids distribution services and natural gas storage; sulfur and sulfur-based products processing, manufacturing, marketing and distribution; and marine transportation services for petroleum products and by-products. | |
The Partnership’s unaudited consolidated and condensed financial statements have been prepared in accordance with the requirements of Form 10-Q and United States Generally Accepted Accounting Principles (“U.S. GAAP”) for interim financial reporting. Accordingly, these financial statements have been condensed and do not include all of the information and footnotes required by U.S. GAAP for annual audited financial statements of the type contained in the Partnership’s annual reports on Form 10-K. In the opinion of the management of the Partnership’s general partner, all adjustments and elimination of significant intercompany balances necessary for a fair presentation of the Partnership’s financial position, results of operations, and cash flows for the periods shown have been made. All such adjustments are of a normal recurring nature. Results for such interim periods are not necessarily indicative of the results of operations for the full year. These financial statements should be read in conjunction with the Partnership’s audited consolidated financial statements and notes thereto included in the Partnership’s annual report on Form 10-K for the year ended December 31, 2013, filed with the Securities and Exchange Commission (the “SEC”) on March 3, 2014, as amended by Amendment No. 1 on Form 10-K/A for the year ended December 31, 2013 filed on March 28, 2014. | |
Management has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these consolidated and condensed financial statements in conformity with U.S. GAAP. Actual results could differ from those estimates. | |
Prior to August 30, 2013, Martin Resource Management owned 100% of the Partnership's general partner. On August 30, 2013, Martin Resource Management completed the sale of a 49% non-controlling voting interest (50% economic interest) in MMGP Holdings, LLC (“Holdings”), a newly-formed sole member of Martin Midstream GP LLC (“MMGP”), the general partner of the Partnership, to certain affiliated investment funds managed by Alinda Capital Partners (“Alinda”). Upon closing the transaction, Alinda appointed two representatives to serve as directors of the general partner. |
New_Accounting_Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Changes and Error Corrections [Abstract] | ' |
New Accounting Pronouncements | ' |
New Accounting Pronouncements | |
In February 2013, the Financial Accounting Standards Board (“FASB”) amended the provisions of Accounting Standards Codification (“ASC”) 220 related to accumulated other comprehensive income, which does not change the current requirements for reporting net income or other comprehensive income in financial statements. The standard requires entities to provide information about the amounts reclassified out of accumulated other comprehensive income by component. The entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. This amended guidance was adopted by the Partnership effective January 1, 2013. As this new guidance only requires enhanced disclosure, adoption did not impact the Partnership's financial position or results of operations. |
Acquisitions
Acquisitions | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Business Combinations [Abstract] | ' | |||
Acquisitions | ' | |||
Acquisitions | ||||
Marine Transportation Equipment Purchase | ||||
On September 30, 2013, the Partnership acquired two previously leased inland tank barges from Martin Resource Management for $7,100. This acquisition is considered a transfer of net assets between entities under common control. The acquisition of these assets was recorded at the historical carrying value of the assets at the acquisition date. The Partnership recorded $6,799 to property, plant and equipment in the Marine Transportation segment and the excess of the purchase price over the carrying value of the assets of $301 was recorded as an adjustment to partners' capital. This transaction was funded with borrowings under the Partnership's revolving credit facility. | ||||
Sulfur Production Facility | ||||
On August 5, 2013, the Partnership acquired a plant nutrient sulfur production facility in Cactus, Texas (“Cactus”) for $4,118. The transaction was accounted for under the acquisition method of accounting in accordance with ASC 805 relating to business combinations. This transaction was funded by borrowings under the Partnership's revolving credit facility. Assets acquired and liabilities assumed were recorded in the Sulfur Services segment at fair value as follows: | ||||
Inventory | $ | 162 | ||
Property, plant and equipment | 4,000 | |||
Current liabilities | (44 | ) | ||
Total | $ | 4,118 | ||
The Partnership's results of operations from these assets included revenues of $667 and net income of $191 for the three months ended March 31, 2014 related to the Cactus acquisition. | ||||
NL Grease, LLC | ||||
On June 13, 2013, the Partnership acquired certain assets of NL Grease, LLC (“NLG”) for $12,148. NLG is a Kansas City, Missouri based grease manufacturer that specializes in private-label packaging of commercial and industrial greases. The transaction was accounted for under the acquisition method of accounting in accordance with ASC 805 relating to business combinations. This transaction was funded by borrowings under the Partnership's revolving credit facility. The assets acquired by the Partnership were recorded in the Terminalling and Storage segment at fair value of $12,148 in the following purchase price allocation: | ||||
Inventory and other current assets | $ | 1,513 | ||
Property, plant and equipment | 6,136 | |||
Other assets | 5,113 | |||
Other accrued liabilities | (168 | ) | ||
Other long-term obligations | (446 | ) | ||
Total | $ | 12,148 | ||
The purchase price allocation resulted in the recognition of $5,113 in definite-lived intangible assets with no residual value, including $2,418 of technology, $2,218 attributable to a customer list, and $477 attributable to a non-compete agreement. The amounts assigned to technology, the customer list, and the non-compete agreement are amortized over the estimated useful life of ten years, three years, and five years, respectively. The weighted average life over which these acquired intangibles will be amortized is approximately six years. | ||||
The Partnership completed the purchase price allocation during the third quarter of 2013, which resulted in an adjustment to working capital from the preliminary purchase price allocation in the amount of $55. | ||||
The Partnership's results of operations included revenues of $3,652 and net income of $162 for the three months ended March 31, 2014 related to the NLG acquisition. | ||||
NGL Marine Equipment Purchase | ||||
On February 28, 2013, the Partnership purchased from affiliates of Florida Marine Transporters, Inc. six liquefied petroleum gas pressure barges and two commercial push boats for approximately $50,801, of which the commercial push boats totaling $8,201 were allocated to property, plant and equipment in the Partnership's Marine Transportation segment and the six pressure barges totaling $42,600 were allocated to property, plant and equipment in the Partnership's Natural Gas Services segment. This transaction was funded with borrowings under the Partnership's revolving credit facility. |
Discontinued_operations_and_di
Discontinued operations and divestitures | 3 Months Ended |
Mar. 31, 2014 | |
Discontinued Operations and Disposal Groups [Abstract] | ' |
Discontinued operations and divestitures | ' |
Discontinued operations and divestitures | |
On July 31, 2012, the Partnership completed the sale of its East Texas and Northwest Louisiana natural gas gathering and processing assets owned by Prism Gas and other natural gas gathering and processing assets also owned by the Partnership to a subsidiary of CenterPoint Energy Inc. (NYSE: CNP) (“CenterPoint”). The Partnership received net cash proceeds from the sale of $273,269. The asset sale includes the Partnership’s 50% operating interest in Waskom Gas Processing Company (“Waskom”). A subsidiary of CenterPoint owned the other 50% percent interest. | |
Additionally, on September 18, 2012, the Partnership completed the sale of its interest in Matagorda Offshore Gathering System (“Matagorda”) and Panther Interstate Pipeline Energy LLC (“PIPE”) to a private investor group for $1,530. | |
Cash flows resulting from balances existing at December 31, 2012 were reported in the Consolidated and Condensed Statements of Cash Flows as discontinued operations for the three months ended March 31, 2013. |
Inventories
Inventories | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories | ||||||||
Components of inventories at March 31, 2014 and December 31, 2013 were as follows: | ||||||||
31-Mar-14 | December 31, 2013 | |||||||
Natural gas liquids | $ | 21,602 | $ | 31,859 | ||||
Sulfur | 18,515 | 8,912 | ||||||
Sulfur based products | 16,626 | 17,584 | ||||||
Lubricants | 35,173 | 33,847 | ||||||
Other | 2,855 | 2,700 | ||||||
$ | 94,771 | $ | 94,902 | |||||
Investments_in_Unconsolidated_
Investments in Unconsolidated Entities and Joint Ventures | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | |||||||||||||||
Investments in Unconsolidated Entities and Joint Ventures | ' | |||||||||||||||
Investments in Unconsolidated Entities and Joint Ventures | ||||||||||||||||
At March 31, 2014, the Partnership owned an unconsolidated 42.21% interest in Cardinal Gas Storage Partners LLC (“Cardinal”). | ||||||||||||||||
During the fourth quarter of 2013, the Partnership sold its unconsolidated 50% interest in Caliber Gathering, LLC (“Caliber”). | ||||||||||||||||
During March 2013, the Partnership acquired 100% of the preferred interests in Martin Energy Trading LLC (“MET”), a subsidiary of Martin Resource Management, for $15,000. | ||||||||||||||||
These investments are accounted for by the equity method. | ||||||||||||||||
The following tables summarize the components of the investment in unconsolidated entities on the Partnership’s Consolidated and Condensed Balance Sheets and the components of equity in earnings of unconsolidated entities included in the Partnership’s Consolidated and Condensed Statements of Operations: | ||||||||||||||||
31-Mar-14 | December 31, 2013 | |||||||||||||||
Redbird | $ | 113,781 | $ | 113,662 | ||||||||||||
MET | 15,555 | 15,000 | ||||||||||||||
Total investment in unconsolidated entities | $ | 129,336 | $ | 128,662 | ||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Equity in loss of Redbird | $ | (851 | ) | $ | (216 | ) | ||||||||||
Equity in earnings of MET | 555 | — | ||||||||||||||
Equity in loss of Caliber | — | (158 | ) | |||||||||||||
Equity in loss of unconsolidated entities | $ | (296 | ) | $ | (374 | ) | ||||||||||
Selected financial information for significant unconsolidated equity-method investees is as follows: | ||||||||||||||||
As of March 31, | Three Months Ended March 31, | |||||||||||||||
Total | Members' Equity | Revenues | Net Income (Loss) | |||||||||||||
Assets | ||||||||||||||||
2014 | ||||||||||||||||
Cardinal | $ | 646,963 | $ | 346,860 | $ | 18,429 | $ | (2,017 | ) | |||||||
As of December 31, | ||||||||||||||||
2013 | ||||||||||||||||
Cardinal | $ | 661,816 | $ | 346,584 | $ | 8,087 | $ | 451 | ||||||||
As of March 31, 2014 and December 31, 2013, the Partnership’s interest in cash of the unconsolidated equity-method investees was $6,287 and $3,703, respectively. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' |
Derivative Instruments and Hedging Activities | ' |
Derivative Instruments and Hedging Activities | |
The Partnership’s results of operations are materially impacted by changes in crude oil, natural gas and NGL prices and interest rates. In an effort to manage its exposure to these risks, the Partnership periodically enters into various derivative instruments, including commodity and interest rate hedges. | |
(a) Commodity Derivative Instruments | |
The Partnership has from time to time used derivatives to manage the risk of commodity price fluctuation. The Partnership has established a hedging policy and monitors and manages the commodity market risk associated with potential commodity risk exposure. These hedging arrangements have been in the form of swaps for crude oil, natural gas and natural gasoline. In addition, the Partnership has focused on utilizing counterparties for these transactions whose financial condition is appropriate for the credit risk involved in each specific transaction. The Partnership did not have any commodity derivative instruments outstanding during the three months ended March 31, 2014 or 2013. | |
(b) Interest Rate Derivative Instruments | |
The Partnership is exposed to market risks associated with interest rates. From time to time, the Partnership enters into interest rate swaps to manage interest rate risk associated with the Partnership’s variable rate credit facility and senior unsecured notes. The Partnership did not have any interest rate derivative instruments outstanding during the three months ended March 31, 2014 or 2013. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
The Partnership follows the provisions of ASC 820 related to fair value measurements and disclosures, which established a framework for measuring fair value and expanded disclosures about fair value measurements. The adoption of this guidance had no impact on the Partnership’s financial position or results of operations. | ||||||||||||||||
ASC 820 applies to all assets and liabilities that are being measured and reported on a fair value basis. This statement enables the reader of the financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value of each asset and liability carried at fair value into one of the following categories: | ||||||||||||||||
Level 1: Quoted market prices in active markets for identical assets or liabilities. | ||||||||||||||||
Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. | ||||||||||||||||
Level 3: Unobservable inputs that are not corroborated by market data. | ||||||||||||||||
The following items are measured at fair value on a recurring basis subject to the disclosure requirements of ASC 820 at March 31, 2014 and December 31, 2013: | ||||||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
Quoted Prices in | Significant Other | Significant | ||||||||||||||
Active Markets for | Observable Inputs | Unobservable | ||||||||||||||
Identical Assets | Inputs | |||||||||||||||
Description | 31-Mar-14 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Liabilities | ||||||||||||||||
2018 Senior unsecured notes | $ | 182,767 | $ | — | $ | 182,767 | $ | — | ||||||||
2021 Senior unsecured notes | 263,786 | — | 263,786 | — | ||||||||||||
Total liabilities | $ | 446,553 | $ | — | $ | 446,553 | $ | — | ||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
Quoted Prices in | Significant Other | Significant | ||||||||||||||
Active Markets for | Observable Inputs | Unobservable | ||||||||||||||
Identical Assets | Inputs | |||||||||||||||
Description | 31-Dec-13 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Liabilities | ||||||||||||||||
2018 Senior unsecured notes | $ | 185,816 | $ | — | $ | 185,816 | $ | — | ||||||||
2021 Senior unsecured notes | 258,004 | — | 258,004 | — | ||||||||||||
Total liabilities | $ | 443,820 | $ | — | $ | 443,820 | $ | — | ||||||||
FASB ASC 825-10-65, Disclosures about Fair Value of Financial Instruments, requires that the Partnership disclose estimated fair values for its financial instruments. Fair value estimates are set forth below for the Partnership’s financial instruments. The following methods and assumptions were used to estimate the fair value of each class of financial instrument: | ||||||||||||||||
• | Accounts and other receivables, trade and other accounts payable, accrued interest payable, other accrued liabilities, income taxes payable and due from/to affiliates: The carrying amounts approximate fair value due to the short maturity and highly liquid nature of these instruments, and as such these have been excluded from the table above. | |||||||||||||||
• | Long-term debt including current portion: The carrying amount of the revolving credit facility approximates fair value due to the debt having a variable interest rate and is in Level 2. The estimated fair value of the senior unsecured notes is based on market prices of similar debt. |
Other_Accrued_Liabilities
Other Accrued Liabilities | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Other Liabilities Disclosure [Abstract] | ' | |||||||
Other Accrued Liabilities | ' | |||||||
Other Accrued Liabilities | ||||||||
Components of other accrued liabilities were as follows: | ||||||||
31-Mar-14 | December 31, 2013 | |||||||
Accrued interest | $ | 10,301 | $ | 11,038 | ||||
Property and other taxes payable | 3,620 | 6,785 | ||||||
Accrued payroll | 1,308 | 2,186 | ||||||
Other | 336 | 233 | ||||||
$ | 15,565 | $ | 20,242 | |||||
LongTerm_Debt_and_Capital_Leas
Long-Term Debt and Capital Leases | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-Term Debt and Capital Leases | ' | |||||||
Long-Term Debt and Capital Leases | ||||||||
At March 31, 2014 and December 31, 2013, long-term debt consisted of the following: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
$637,5003 Revolving credit facility at variable interest rate (3.16%1 weighted average at March 31, 2014), due March 2018 secured by substantially all of the Partnership’s assets, including, without limitation, inventory, accounts receivable, vessels, equipment, fixed assets and the interests in the Partnership’s operating subsidiaries and equity method investees | $ | 220,000 | $ | 235,000 | ||||
$200,0002 Senior notes, 8.875% interest, net of unamortized discount of $1,228 and $1,305, respectively, issued March 2010 and due April 2018, unsecured | 173,772 | 173,695 | ||||||
$250,000 Senior notes, 7.250% interest, issued February 2013 and due February 2021, unsecured | 250,000 | 250,000 | ||||||
Total long-term debt | 643,772 | 658,695 | ||||||
Less current installments | — | — | ||||||
Long-term debt, net of current installments | $ | 643,772 | $ | 658,695 | ||||
1 Interest rate fluctuates based on the LIBOR rate plus an applicable margin set on the date of each advance. The margin above LIBOR is set every three months. Indebtedness under the credit facility bears interest at LIBOR plus an applicable margin or the base prime rate plus an applicable margin. The applicable margin for revolving loans that are LIBOR loans ranges from 2.00% to 3.00% and the applicable margin for revolving loans that are base prime rate loans ranges from 1.00% to 2.00%. The applicable margin for existing LIBOR borrowings at March 31, 2014 is 3.00%. The credit facility contains various covenants which limit the Partnership’s ability to make certain investments and acquisitions; enter into certain agreements; incur indebtedness; sell assets; and make certain amendments to the Partnership's omnibus agreement with Martin Resource Management (the "Omnibus Agreement"). The Partnership is permitted to make quarterly distributions so long as no event of default exists. | ||||||||
2 Pursuant to the Indenture under which the Senior Notes due in 2018 were issued, the Partnership has the option to redeem up to 35% of the aggregate principal amount at a redemption price of 108.875% of the principal amount, plus accrued and unpaid interest with the proceeds of certain equity offerings. On April 1, 2014, the Partnership redeemed the remaining $175,000 of the 8.875% senior unsecured notes due in 2018 from all holders. On April 1, 2014, the Partnership completed private placement add-on of $150,000 in aggregate principal amount of 7.250% senior unsecured notes due February 2021 to qualified institutional buyers under Rule 144A. | ||||||||
3 Effective February 18, 2014, the Partnership increased the maximum amount of borrowings and letters of credit available under the Partnership's revolving credit facility from $600,000 to $637,500 and extended the maturity date of the facility from April 2016 to March 2018. | ||||||||
The Partnership paid cash interest in the amount of $11,689 and $2,217 for the three months ended March 31, 2014 and 2013, respectively. Capitalized interest was $388 and $180 for the three months ended March 31, 2014 and 2013, respectively. |
Partners_Capital
Partners' Capital | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Partners' Capital Notes [Abstract] | ' | |||||||
Partners' Capital | ' | |||||||
Partners' Capital | ||||||||
As of March 31, 2014, partners’ capital consisted of 26,754,856 common limited partner units, representing a 98% partnership interest and a 2% general partner interest. Martin Resource Management, through subsidiaries, owned 5,093,267 of the Partnership's common limited partnership units representing approximately 19.0% of the Partnership's outstanding common limited partnership units. MMGP, the Partnership's general partner, owns the 2% general partnership interest. Martin Resource Management controls the Partnership's general partner, by virtue of its 51% voting interest in Holdings, the sole member of the Partnership's general partner. | ||||||||
The partnership agreement of the Partnership (the “Partnership Agreement”) contains specific provisions for the allocation of net income and losses to each of the partners for purposes of maintaining their respective partner capital accounts. | ||||||||
Issuance of Common Units | ||||||||
In March 2014, the Partnership entered into an equity distribution agreement with multiple underwriters (the “Sales Agents”) for the ongoing distribution of the Partnership's common units. Pursuant to this program, the Partnership offered and sold common unit equity through the Sales Agents for aggregate proceeds of $5,654 during the three months ended March 31, 2014. Sales were at market prices prevailing at the time of the sale. The Partnership also received capital contributions from the general partner of $114 during the three months ended March 31, 2014, to maintain its 2.0% general partner interest in the Partnership. The net proceeds from the common unit issuances were used to pay down outstanding amounts under the Partnership's revolving credit facility. | ||||||||
Incentive Distribution Rights | ||||||||
The Partnership’s general partner, MMGP, holds a 2% general partner interest and certain incentive distribution rights (“IDRs”) in the Partnership. IDRs are a separate class of non-voting limited partner interest that may be transferred or sold by the general partner under the terms of the Partnership Agreement, and represent the right to receive an increasing percentage of cash distributions after the minimum quarterly distribution and any cumulative arrearages on common units once certain target distribution levels have been achieved. The Partnership is required to distribute all of its available cash from operating surplus, as defined in the Partnership Agreement. On October 2, 2012, the Partnership Agreement was amended to provide that the general partner shall forego the next $18,000 in incentive distributions that it would otherwise be entitled to receive. No incentive distributions were allocated to the general partner from July 1, 2012 through March 31, 2014. As of March 31, 2014, the amount of incentive distributions the general partner has foregone is $11,867, resulting in an amount remaining of $6,133. | ||||||||
The target distribution levels entitle the general partner to receive 2% of quarterly cash distributions up to $0.55 per unit, 15% of quarterly cash distributions in excess of $0.55 per unit until all unitholders have received $0.625 per unit, 25% of quarterly cash distributions in excess of $0.625 per unit until all unitholders have received $0.75 per unit and 50% of quarterly cash distributions in excess of $0.75 per unit. | ||||||||
For the three months ended March 31, 2014 and 2013, the general partner received no incentive distributions. | ||||||||
Distributions of Available Cash | ||||||||
The Partnership distributes all of its available cash (as defined in the Partnership Agreement) within 45 days after the end of each quarter to unitholders of record and to the general partner. Available cash is generally defined as all cash and cash equivalents of the Partnership on hand at the end of each quarter less the amount of cash reserves its general partner determines in its reasonable discretion is necessary or appropriate to: (i) provide for the proper conduct of the Partnership’s business; (ii) comply with applicable law, any debt instruments or other agreements; or (iii) provide funds for distributions to unitholders and the general partner for any one or more of the next four quarters, plus all cash on the date of determination of available cash for the quarter resulting from working capital borrowings made after the end of the quarter. | ||||||||
Net Income per Unit | ||||||||
The Partnership follows the provisions of the FASB ASC 260-10 related to earnings per share, which addresses the application of the two-class method in determining income per unit for master limited partnerships having multiple classes of securities that may participate in partnership distributions accounted for as equity distributions. Undistributed earnings are allocated to the general partner and limited partners utilizing the contractual terms of the Partnership Agreement. Distributions to the general partner pursuant to the IDRs are limited to available cash that will be distributed as defined in the Partnership Agreement. Accordingly, the Partnership does not allocate undistributed earnings to the general partner for the IDRs because the general partner's share of available cash is the maximum amount that the general partner would be contractually entitled to receive if all earnings for the period were distributed. When current period distributions are in excess of earnings, the excess distributions for the period are to be allocated to the general partner and limited partners based on their respective sharing of losses specified in the Partnership Agreement. Additionally, as required under FASB ASC 260-10-45-61A, unvested share-based payments that entitle employees to receive non-forfeitable distributions are considered participating securities, as defined in FASB ASC 260-10-20, for earnings per unit calculations. | ||||||||
For purposes of computing diluted net income per unit, the Partnership uses the more dilutive of the two-class and if-converted methods. Under the if-converted method, the weighted-average number of subordinated units outstanding for the period is added to the weighted-average number of common units outstanding for purposes of computing basic net income per unit and the resulting amount is compared to the diluted net income per unit computed using the two-class method. The following is a reconciliation of net income allocated to the general partner and limited partners for purposes of calculating net income attributable to limited partners per unit: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Net income attributable to Martin Midstream Partners L.P. | $ | 11,795 | $ | 16,637 | ||||
Less general partner’s interest in net income: | ||||||||
Distributions payable on behalf of general partner interest | 472 | 456 | ||||||
Distributions payable to the general partner interest in excess of earnings allocable to the general partner interest | (236 | ) | (123 | ) | ||||
Less income allocable to unvested restricted units | 32 | 43 | ||||||
Limited partners’ interest in net income | $ | 11,527 | $ | 16,261 | ||||
The weighted average units outstanding for basic net income per unit were 26,571,666 and 26,560,654 for the three months ended March 31, 2014 and 2013, respectively. For diluted net income per unit, the weighted average units outstanding were increased by 33,101 and 8,756 for the three months ended March 31, 2014 and 2013, respectively due to the dilutive effect of restricted units granted under the Partnership’s long-term incentive plan. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Related Party Transactions [Abstract] | ' | |||||||
Related Party Transactions | ' | |||||||
Related Party Transactions | ||||||||
As of March 31, 2014, Martin Resource Management owned 5,093,267 of the Partnership’s common units representing approximately 19.0% of the Partnership’s outstanding limited partnership units. Martin Resource Management controls the Partnership's general partner by virtue of its 51% voting interest in Holdings, the sole member of the Partnership's general partner. The Partnership’s general partner, MMGP, owns a 2.0% general partner interest in the Partnership and the Partnership’s IDRs. The Partnership’s general partner’s ability, as general partner, to manage and operate the Partnership, and Martin Resource Management’s ownership as of March 31, 2014, of approximately 19.0% of the Partnership’s outstanding limited partnership units, effectively gives Martin Resource Management the ability to veto some of the Partnership’s actions and to control the Partnership’s management. | ||||||||
The following is a description of the Partnership’s material related party agreements and transactions: | ||||||||
Omnibus Agreement | ||||||||
Omnibus Agreement. The Partnership and its general partner are parties to the Omnibus Agreement dated November 1, 2002, with Martin Resource Management that governs, among other things, potential competition and indemnification obligations among the parties to the agreement, related party transactions, the provision of general administration and support services by Martin Resource Management and the Partnership’s use of certain of Martin Resource Management’s trade names and trademarks. The Omnibus Agreement was amended on November 25, 2009, to include processing crude oil into finished products including naphthenic lubricants, distillates, asphalt and other intermediate cuts. The Omnibus Agreement was amended further on October 1, 2012, to permit the Partnership to provide certain lubricant packaging products and services to Martin Resource Management. | ||||||||
Non-Competition Provisions. Martin Resource Management has agreed for so long as it controls the general partner of the Partnership, not to engage in the business of: | ||||||||
• | providing terminalling and storage services for petroleum products and by-products including the refining, blending and packaging of finished lubricants; | |||||||
•providing marine transportation of petroleum products and by-products; | ||||||||
•distributing NGLs; and | ||||||||
•manufacturing and selling sulfur-based fertilizer products and other sulfur-related products. | ||||||||
This restriction does not apply to: | ||||||||
• | the ownership and/or operation on the Partnership’s behalf of any asset or group of assets owned by it or its affiliates; | |||||||
• | any business operated by Martin Resource Management, including the following: | |||||||
◦ | providing land transportation of various liquids; | |||||||
◦ | distributing fuel oil, sulfuric acid, marine fuel and other liquids; | |||||||
◦ | providing marine bunkering and other shore-based marine services in Alabama, Florida, Louisiana, Mississippi and Texas; | |||||||
◦ | operating a crude oil gathering business in Stephens, Arkansas; | |||||||
◦ | providing crude oil gathering, refining, and marketing services of base oils, asphalt, and distillate products in Smackover, Arkansas; | |||||||
◦ | operating an underground NGL storage facility in Arcadia, Louisiana; | |||||||
◦ | operating an environmental consulting company; | |||||||
◦ | operating an engineering services company; | |||||||
◦ | supplying employees and services for the operation of the Partnership's business; | |||||||
◦ | operating a natural gas optimization business; | |||||||
◦ | operating, for its account and the Partnership's account, the docks, roads, loading and unloading facilities and other common use facilities or access routes at the Partnership's Stanolind terminal; and | |||||||
◦ | operating, solely for the Partnership's account, the asphalt facilities in Omaha, Nebraska, Port Neches, Texas and South Houston, Texas. | |||||||
• | any business that Martin Resource Management acquires or constructs that has a fair market value of less than $5,000; | |||||||
• | any business that Martin Resource Management acquires or constructs that has a fair market value of $5,000 or more if the Partnership has been offered the opportunity to purchase the business for fair market value and the Partnership declines to do so with the concurrence of the conflicts committee of the board of directors of the general partner of the Partnership (the "Conflicts Committee"); and | |||||||
• | any business that Martin Resource Management acquires or constructs where a portion of such business includes a restricted business and the fair market value of the restricted business is $5,000 or more and represents less than 20% of the aggregate value of the entire business to be acquired or constructed; provided that, following completion of the acquisition or construction, the Partnership will be provided the opportunity to purchase the restricted business. | |||||||
Services. Under the Omnibus Agreement, Martin Resource Management provides the Partnership with corporate staff, support services, and administrative services necessary to operate the Partnership’s business. The Omnibus Agreement requires the Partnership to reimburse Martin Resource Management for all direct expenses it incurs or payments it makes on the Partnership’s behalf or in connection with the operation of the Partnership’s business. There is no monetary limitation on the amount the Partnership is required to reimburse Martin Resource Management for direct expenses. In addition to the direct expenses, under the Omnibus Agreement, the Partnership is required to reimburse Martin Resource Management for indirect general and administrative and corporate overhead expenses. | ||||||||
Effective January 1, 2014, through December 31, 2014, the Conflicts Committee approved an annual reimbursement amount for indirect expenses of $12,535. The Partnership reimbursed Martin Resource Management for $3,190 and $2,657 of indirect expenses for the three months ended March 31, 2014 and 2013, respectively. The Conflicts Committee will review and approve future adjustments in the reimbursement amount for indirect expenses, if any, annually. | ||||||||
These indirect expenses are intended to cover the centralized corporate functions Martin Resource Management provides for the Partnership, such as accounting, treasury, clerical, engineering, legal, billing, information technology, administration of insurance, general office expenses and employee benefit plans and other general corporate overhead functions the Partnership shares with Martin Resource Management retained businesses. The provisions of the Omnibus Agreement regarding Martin Resource Management’s services will terminate if Martin Resource Management ceases to control the general partner of the Partnership. | ||||||||
Related Party Transactions. The Omnibus Agreement prohibits the Partnership from entering into any material agreement with Martin Resource Management without the prior approval of the Conflicts Committee. For purposes of the Omnibus Agreement, the term material agreements means any agreement between the Partnership and Martin Resource Management that requires aggregate annual payments in excess of then-applicable agreed upon reimbursable amount of indirect general and administrative expenses. Please read “Services” above. | ||||||||
License Provisions. Under the Omnibus Agreement, Martin Resource Management has granted the Partnership a nontransferable, nonexclusive, royalty-free right and license to use certain of its trade names and marks, as well as the trade names and marks used by some of its affiliates. | ||||||||
Amendment and Termination. The Omnibus Agreement may be amended by written agreement of the parties; provided, however, that it may not be amended without the approval of the Conflicts Committee if such amendment would adversely affect the unitholders. The Omnibus Agreement was first amended on November 25, 2009, to permit the Partnership to provide refining services to Martin Resource Management. The Omnibus Agreement was amended further on October 1, 2012, to permit the Partnership to provide certain lubricant packaging products and services to Martin Resource Management. Such amendments were approved by the Conflicts Committee. The Omnibus Agreement, other than the indemnification provisions and the provisions limiting the amount for which the Partnership will reimburse Martin Resource Management for general and administrative services performed on its behalf, will terminate if the Partnership is no longer an affiliate of Martin Resource Management. | ||||||||
Motor Carrier Agreement | ||||||||
Motor Carrier Agreement. The Partnership is a party to a motor carrier agreement effective January 1, 2006 as amended, with Martin Transport, Inc., a wholly owned subsidiary of Martin Resource Management through which Martin Transport, Inc. operates its land transportation operations. Under the agreement, Martin Transport, Inc. agreed to transport the Partnership's NGL's as well as other liquid products. | ||||||||
Term and Pricing. The agreement has an initial term that expired in December 2007 but automatically renews for consecutive one year periods unless either party terminates the agreement by giving written notice to the other party at least 30 days prior to the expiration of the then-applicable term. The Partnership has the right to terminate this agreement at any time by providing 90 days prior notice. These rates are subject to any adjustments which are mutually agreed upon or in accordance with a price index. Additionally, during the term of the agreement, shipping charges are also subject to fuel surcharges determined on a weekly basis in accordance with the U.S. Department of Energy’s national diesel price list. | ||||||||
Indemnification. Martin Transport has indemnified us against all claims arising out of the negligence or willful misconduct of Martin Transport and its officers, employees, agents, representatives and subcontractors. We indemnified Martin Transport against all claims arising out of the negligence or willful misconduct of us and our officers, employees, agents, representatives and subcontractors. In the event a claim is the result of the joint negligence or misconduct of Martin Transport and us, our indemnification obligations will be shared in proportion to each party’s allocable share of such joint negligence or misconduct. | ||||||||
Marine Agreements | ||||||||
Marine Transportation Agreement. The Partnership is a party to a marine transportation agreement effective January 1, 2006, which was amended January 1, 2007, under which the Partnership provides marine transportation services to Martin Resource Management on a spot-contract basis at applicable market rates. Effective each January 1, this agreement automatically renews for consecutive one year periods unless either party terminates the agreement by giving written notice to the other party at least 60 days prior to the expiration of the then applicable term. The fees the Partnership charges Martin Resource Management are based on applicable market rates. | ||||||||
Marine Fuel. The Partnership is a party to an agreement with Martin Resource Management dated November 1, 2002 under which Martin Resource Management provides the Partnership with marine fuel from its locations in the Gulf of Mexico at a fixed rate in excess of the Platt’s U.S. Gulf Coast Index for #2 Fuel Oil. Under this agreement, the Partnership agreed to purchase all of its marine fuel requirements that occur in the areas serviced by Martin Resource Management. | ||||||||
Terminal Services Agreements | ||||||||
Diesel Fuel Terminal Services Agreement. The Partnership is a party to an agreement under which the Partnership provides terminal services to Martin Resource Management. This agreement was amended and restated as of October 27, 2004, and was set to expire in December 2006, but automatically renewed and will continue to automatically renew on a month-to-month basis until either party terminates the agreement by giving 60 days written notice. The per gallon throughput fee the Partnership charges under this agreement may be adjusted annually based on a price index. | ||||||||
Miscellaneous Terminal Services Agreements. The Partnership is currently party to several terminal services agreements and from time to time the Partnership may enter into other terminal service agreements for the purpose of providing terminal services to related parties. Individually, each of these agreements is immaterial but when considered in the aggregate they could be deemed material. These agreements are throughput based with a minimum volume commitment. Generally, the fees due under these agreements are adjusted annually based on a price index. | ||||||||
Talen's Agreements. In connection with the Talen's Marine & Fuel LLC ("Talens") acquisition, three new agreements were executed, all with effective dates of December 31, 2012. Under the terms of these contracts, Talen's provides terminal services to Martin Resource Management. The terminal services agreements both have five-year terms and provide a per gallon throughput rate, which may be adjusted annually based on a price index. | ||||||||
Other Agreements | ||||||||
Cross Tolling Agreement. The Partnership is a party to an agreement with Cross, originally dated November 25, 2009, under which the Partnership processes crude oil into finished products, including naphthenic lubricants, distillates, asphalt and other intermediate cuts for Cross. The tolling agreement, which has subsequently been amended, has a 22 year term which expires November 25, 2031. Under this tolling agreement, Cross agreed to process a minimum of 6,500 barrels per day of crude oil at the facility at a fixed price per barrel. Any additional barrels are processed at a modified price per barrel. In addition, Cross agreed to pay a monthly reservation fee and a periodic fuel surcharge fee based on certain parameters specified in the tolling agreement. All of these fees (other than the fuel surcharge) are subject to escalation annually based upon the greater of 3% or the increase in the Consumer Price Index for a specified annual period. In addition, every three years, the parties can negotiate an upward or downward adjustment in the fees subject to their mutual agreement. | ||||||||
Sulfuric Acid Sales Agency Agreement. The Partnership is party to a second amended and restated sulfuric acid sales agency agreement dated August 5, 2013, under which Martin Resource Management purchases and markets the sulfuric acid produced by the Partnership’s sulfuric acid production plant at Plainview, Texas, that is not consumed by the Partnership’s internal operations. This agreement, as amended, will remain in place until the Partnership terminates it by providing 180 days’ written notice. Under this agreement, the Partnership sells all of its excess sulfuric acid to Martin Resource Management. Martin Resource Management then markets such acid to third-parties and the Partnership shares in the profit of Martin Resource Management’s sales of the excess acid to such third parties. | ||||||||
Other Miscellaneous Agreements. From time to time the Partnership enters into other miscellaneous agreements with Martin Resource Management for the provision of other services or the purchase of other goods. | ||||||||
The tables below summarize the related party transactions that are included in the related financial statement captions on the face of the Partnership’s Consolidated and Condensed Statements of Operations. The revenues, costs and expenses reflected in these tables are tabulations of the related party transactions that are recorded in the corresponding caption of the consolidated and condensed financial statement and do not reflect a statement of profits and losses for related party transactions. | ||||||||
The impact of related party revenues from sales of products and services is reflected in the consolidated and condensed financial statements as follows: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Revenues: | ||||||||
Terminalling and storage | $ | 18,010 | $ | 17,328 | ||||
Marine transportation | 5,849 | 6,843 | ||||||
Product sales: | ||||||||
Natural gas services | 829 | 9 | ||||||
Sulfur services | 955 | 1,133 | ||||||
Terminalling and storage | 108 | 67 | ||||||
1,892 | 1,209 | |||||||
$ | 25,751 | $ | 25,380 | |||||
The impact of related party cost of products sold is reflected in the consolidated and condensed financial statements as follows: | ||||||||
Cost of products sold: | ||||||||
Natural gas services | $ | 8,453 | $ | 8,556 | ||||
Sulfur services | 4,865 | 4,534 | ||||||
Terminalling and storage | 9,844 | 11,961 | ||||||
$ | 23,162 | $ | 25,051 | |||||
The impact of related party operating expenses is reflected in the consolidated and condensed financial statements as follows: | ||||||||
Operating Expenses: | ||||||||
Marine transportation | $ | 9,664 | $ | 10,058 | ||||
Natural gas services | 606 | 485 | ||||||
Sulfur services | 1,486 | 2,355 | ||||||
Terminalling and storage | 6,483 | 5,076 | ||||||
$ | 18,239 | $ | 17,974 | |||||
The impact of related party selling, general and administrative expenses is reflected in the consolidated and condensed financial statements as follows: | ||||||||
Selling, general and administrative: | ||||||||
Marine transportation | $ | 8 | $ | 15 | ||||
Natural gas services | 958 | 579 | ||||||
Sulfur services | 843 | 806 | ||||||
Terminalling and storage | 385 | 361 | ||||||
Indirect overhead allocation, net of reimbursement | 3,190 | 2,657 | ||||||
$ | 5,384 | $ | 4,418 | |||||
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
The operations of the Partnership are generally not subject to income taxes because its income is taxed directly to its partners. | |
The Partnership became subject to the Texas margin tax which is included in income tax expense on the Consolidated and Condensed Statements of Operations. The Texas margin tax restructured the state business tax by replacing the taxable capital and earned surplus components of the existing franchise tax with a new “taxable margin” component. Since the tax base on the Texas margin tax is derived from an income-based measure, the margin tax is construed as an income tax and, therefore, the recognition of deferred taxes applies to the margin tax. The impact on deferred taxes as a result of this provision is immaterial. State income taxes attributable to the Texas margin tax of $300 and $307 were recorded in income tax expense for the three months ended March 31, 2014 and 2013, respectively. |
Business_Segments
Business Segments | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||
Business Segments | ' | |||||||||||||||||||||||
Business Segments | ||||||||||||||||||||||||
The Partnership has four reportable segments: terminalling and storage, natural gas services, sulfur services and marine transportation. The Partnership’s reportable segments are strategic business units that offer different products and services. The operating income of these segments is reviewed by the chief operating decision maker to assess performance and make business decisions. | ||||||||||||||||||||||||
The accounting policies of the operating segments are the same as those described in Note 2 in the Partnership’s annual report on Form 10-K for the year ended December 31, 2013, filed with the SEC on March 3, 2014, as amended, by Amendment No. 1 on Form 10-K/A for the year ended December 31, 2013 filed on March 28, 2014. The Partnership evaluates the performance of its reportable segments based on operating income. There is no allocation of administrative expenses or interest expense. | ||||||||||||||||||||||||
Three Months Ended March 31, 2014 | Operating Revenues | Intersegment Revenues Eliminations | Operating Revenues after Eliminations | Depreciation and Amortization | Operating Income (Loss) after Eliminations | Capital Expenditures | ||||||||||||||||||
Terminalling and storage | $ | 87,297 | $ | (1,223 | ) | $ | 86,074 | $ | 8,975 | $ | 8,311 | $ | 15,600 | |||||||||||
Natural gas services | 333,633 | — | 333,633 | 504 | 9,465 | 500 | ||||||||||||||||||
Sulfur services | 54,207 | — | 54,207 | 1,983 | 8,068 | 1,447 | ||||||||||||||||||
Marine transportation | 24,114 | (1,000 | ) | 23,114 | 2,530 | 2,962 | 3,928 | |||||||||||||||||
Indirect selling, general and administrative | — | — | — | — | (4,897 | ) | — | |||||||||||||||||
Total | $ | 499,251 | $ | (2,223 | ) | $ | 497,028 | $ | 13,992 | $ | 23,909 | $ | 21,475 | |||||||||||
Three Months Ended March 31, 2013 | Operating Revenues | Intersegment Revenues Eliminations | Operating Revenues after Eliminations | Depreciation and Amortization | Operating Income (Loss) after Eliminations | Capital Expenditures | ||||||||||||||||||
Terminalling and storage | $ | 80,353 | $ | (1,141 | ) | $ | 79,212 | $ | 7,096 | $ | 9,983 | $ | 14,049 | |||||||||||
Natural gas services | 259,439 | — | 259,439 | 292 | 8,462 | 115 | ||||||||||||||||||
Sulfur services | 70,385 | — | 70,385 | 1,966 | 9,344 | 201 | ||||||||||||||||||
Marine transportation | 25,232 | (582 | ) | 24,650 | 2,539 | 2,539 | 350 | |||||||||||||||||
Indirect selling, general and administrative | — | — | — | — | (3,943 | ) | — | |||||||||||||||||
Total | $ | 435,409 | $ | (1,723 | ) | $ | 433,686 | $ | 11,893 | $ | 26,385 | $ | 14,715 | |||||||||||
The Partnership's assets by reportable segment as of March 31, 2014 and December 31, 2013, are as follows: | ||||||||||||||||||||||||
31-Mar-14 | December 31, 2013 | |||||||||||||||||||||||
Total assets: | ||||||||||||||||||||||||
Terminalling and storage | $ | 468,527 | $ | 461,160 | ||||||||||||||||||||
Natural gas services | 274,584 | 320,631 | ||||||||||||||||||||||
Sulfur services | 161,160 | 151,982 | ||||||||||||||||||||||
Marine transportation | 163,341 | 164,146 | ||||||||||||||||||||||
Total assets | $ | 1,067,612 | $ | 1,097,919 | ||||||||||||||||||||
Unit_Based_Awards
Unit Based Awards | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||
Unit Based Awards | ' | |||||||
Unit Based Awards | ||||||||
The Partnership recognizes compensation cost related to unit-based awards to employees in its consolidated financial statements in accordance with certain provisions of ASC 718. The Partnership recognizes compensation costs related to unit-based awards to directors under certain provisions of ASC 505-50-55 related to equity-based payments to non-employees. Amounts recognized in selling, general, and administrative expense in the consolidated and condensed financial statements with respect to these plans are as follows: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Employees | $ | 122 | $ | 195 | ||||
Non-employee directors | 57 | 61 | ||||||
Total unit-based compensation expense | $ | 179 | $ | 256 | ||||
Long-Term Incentive Plans | ||||||||
The Partnership's general partner has a long term incentive plan for employees and directors of the general partner and its affiliates who perform services for the Partnership. | ||||||||
The plan consists of two components, restricted units and unit options. The plan currently permits the grant of awards covering an aggregate of 725,000 common units, 241,667 of which may be awarded in the form of restricted units and 483,333 of which may be awarded in the form of unit options. The plan is administered by the compensation committee of the general partner’s board of directors (the "Compensation Committee"). | ||||||||
Restricted Units. A restricted unit is a unit that is granted to grantees with certain vesting restrictions. Once these restrictions lapse, the grantee is entitled to full ownership of the unit without restrictions. In addition, the restricted units will vest upon a change of control of the Partnership, the general partner or Martin Resource Management or if the general partner ceases to be an affiliate of Martin Resource Management. The Partnership intends the issuance of the common units upon vesting of the restricted units under the plan to serve as a means of incentive compensation for performance and not primarily as an opportunity to participate in the equity appreciation of the common units. Therefore, plan participants will not pay any consideration for the common units they receive, and the Partnership will receive no remuneration for the units. The restricted units issued to directors generally vest in equal annual installments over a four-year period. Restricted units issued to employees generally cliff vest after three years of service. | ||||||||
The restricted units are valued at their fair value at the date of grant which is equal to the market value of common units on such date. A summary of the restricted unit activity for the three months ended March 31, 2014 is provided below: | ||||||||
Number of Units | Weighted Average Grant-Date Fair Value Per Unit | |||||||
Non-vested, beginning of period | 72,998 | $ | 33.26 | |||||
Granted | 6,400 | $ | 43.05 | |||||
Vested | (5,750 | ) | $ | 40.34 | ||||
Forfeited | (2,750 | ) | $ | 31.06 | ||||
Non-Vested, end of period | 70,898 | $ | 33.65 | |||||
Aggregate intrinsic value, end of period | $ | 3,052 | ||||||
A summary of the restricted units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) during the three and nine months ended March 31, 2014 and 2013 are provided below: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Aggregate intrinsic value of units vested | $ | 249 | $ | 153 | ||||
Fair value of units vested | $ | 247 | $ | 168 | ||||
As of March 31, 2014, there was $1,643 of unrecognized compensation cost related to non-vested restricted units. That cost is expected to be recognized over a weighted-average period of 2.19 years. | ||||||||
Unit Options. The plan currently permits the grant of options covering common units. As of May 2, 2014, the Partnership has not granted any common unit options to directors or employees of the Partnership's general partner, or its affiliates. In the future, the Compensation Committee may determine to make grants under the plan to employees and directors containing such terms as the Compensation Committee shall determine. Unit options will have an exercise price that, in the discretion of the Compensation Committee, may not be less than the fair market value of the units on the date of grant. In addition, the unit options will become exercisable upon a change in control of the Partnership's general partner, Martin Resource Management or if the general partner ceases to be an affiliate of Martin Resource Management or upon the achievement of specified financial objectives. |
Condensed_Consolidating_Financ
Condensed Consolidating Financial Information | 3 Months Ended |
Mar. 31, 2014 | |
Consolidating Financial Statements [Abstract] | ' |
Condensed Consolidating Financial Information | ' |
Condensed Consolidating Financial Information | |
Martin Operating Partnership L.P. (the “Operating Partnership”), the Partnership’s wholly-owned subsidiary, has issued in the past, and may issue in the future, unconditional guarantees of senior or subordinated debt securities of the Partnership in the event that the Partnership issues such securities from time to time. The guarantees that have been issued are full, irrevocable and unconditional. In addition, the Operating Partnership may also issue senior or subordinated debt securities which, if issued, will be fully, irrevocably and unconditionally guaranteed by the Partnership. | |
Since December 31, 2012, the Partnership has added Redbird and MOP Midstream Holdings LLC as subsidiary guarantors to its outstanding senior unsecured notes and has transferred substantially all of Talen's assets to certain of the Partnership's other subsidiary guarantors. Therefore, the Partnership no longer presents condensed consolidating financial information for any non-subsidiary guarantors. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
From time to time, the Partnership is subject to various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Partnership. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
Interest Rate Swaps. The Partnership entered into two interest rate swap agreements effective April 1, 2014 with an aggregate notional amount of $100,000 each to hedge its exposure to changes in the fair value of its senior unsecured notes. Under these swap agreements, the Partnership will pay a floating rate of interest and receive a fixed rate based on a three-month U.S. Dollar LIBOR rate to match the fixed rate of the senior unsecured notes. | |
Issuance of 7.250% Senior Unsecured Notes Due 2021. On April 1, 2014, the Partnership completed a private placement add-on of $150,000 of the 7.250% senior unsecured notes. The Partnership filed with the SEC a registration statement to exchange these notes for substantially identical notes that are registered under the Securities Act and commenced an exchange offer on April 28, 2014. The Partnership expects the exchange offer to be completed during the second quarter of 2014. | |
Redemption of 8.875% Senior Unsecured Notes Due 2018. On April 1, 2014, the Partnership redeemed all $175,000 of the 8.875% senior unsecured notes due in 2018 from their holders. In conjunction with the redemption, the Partnership incurred a debt prepayment premium of $7,767. Additionally, the Partnership expects to record a non-cash charge of $3,871 for the write-off of unamortized debt issuance costs and unamortized debt discount related to the redemption of the senior unsecured notes. | |
Quarterly Distribution. On April 23, 2014, the Partnership declared a quarterly cash distribution of $0.7875 per common unit for the first quarter of 2014, or $3.15 per common unit on an annualized basis, which will be paid on May 15, 2014 to unitholders of record as of May 5, 2014. |
Acquisitions_Tables
Acquisitions (Tables) | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Sulfur Production Facility [Member] | ' | |||
Business Acquisition [Line Items] | ' | |||
Schedule of Business Acquisitions | ' | |||
Assets acquired and liabilities assumed were recorded in the Sulfur Services segment at fair value as follows: | ||||
Inventory | $ | 162 | ||
Property, plant and equipment | 4,000 | |||
Current liabilities | (44 | ) | ||
Total | $ | 4,118 | ||
NL Grease, LLC [Member] | ' | |||
Business Acquisition [Line Items] | ' | |||
Schedule of Business Acquisitions | ' | |||
The assets acquired by the Partnership were recorded in the Terminalling and Storage segment at fair value of $12,148 in the following purchase price allocation: | ||||
Inventory and other current assets | $ | 1,513 | ||
Property, plant and equipment | 6,136 | |||
Other assets | 5,113 | |||
Other accrued liabilities | (168 | ) | ||
Other long-term obligations | (446 | ) | ||
Total | $ | 12,148 | ||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Components of inventory | ' | |||||||
Components of inventories at March 31, 2014 and December 31, 2013 were as follows: | ||||||||
31-Mar-14 | December 31, 2013 | |||||||
Natural gas liquids | $ | 21,602 | $ | 31,859 | ||||
Sulfur | 18,515 | 8,912 | ||||||
Sulfur based products | 16,626 | 17,584 | ||||||
Lubricants | 35,173 | 33,847 | ||||||
Other | 2,855 | 2,700 | ||||||
$ | 94,771 | $ | 94,902 | |||||
Investments_in_Unconsolidated_1
Investments in Unconsolidated Entities and Joint Ventures (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | |||||||||||||||
Summary of components of investment in unconsolidated entities and components of equity in earnings of unconsolidated entities | ' | |||||||||||||||
The following tables summarize the components of the investment in unconsolidated entities on the Partnership’s Consolidated and Condensed Balance Sheets and the components of equity in earnings of unconsolidated entities included in the Partnership’s Consolidated and Condensed Statements of Operations: | ||||||||||||||||
31-Mar-14 | December 31, 2013 | |||||||||||||||
Redbird | $ | 113,781 | $ | 113,662 | ||||||||||||
MET | 15,555 | 15,000 | ||||||||||||||
Total investment in unconsolidated entities | $ | 129,336 | $ | 128,662 | ||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Equity in loss of Redbird | $ | (851 | ) | $ | (216 | ) | ||||||||||
Equity in earnings of MET | 555 | — | ||||||||||||||
Equity in loss of Caliber | — | (158 | ) | |||||||||||||
Equity in loss of unconsolidated entities | $ | (296 | ) | $ | (374 | ) | ||||||||||
Select financial information for significant unconsolidated equity-method investees | ' | |||||||||||||||
Selected financial information for significant unconsolidated equity-method investees is as follows: | ||||||||||||||||
As of March 31, | Three Months Ended March 31, | |||||||||||||||
Total | Members' Equity | Revenues | Net Income (Loss) | |||||||||||||
Assets | ||||||||||||||||
2014 | ||||||||||||||||
Cardinal | $ | 646,963 | $ | 346,860 | $ | 18,429 | $ | (2,017 | ) | |||||||
As of December 31, | ||||||||||||||||
2013 | ||||||||||||||||
Cardinal | $ | 661,816 | $ | 346,584 | $ | 8,087 | $ | 451 | ||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | |||||||||||||||
The following items are measured at fair value on a recurring basis subject to the disclosure requirements of ASC 820 at March 31, 2014 and December 31, 2013: | ||||||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
Quoted Prices in | Significant Other | Significant | ||||||||||||||
Active Markets for | Observable Inputs | Unobservable | ||||||||||||||
Identical Assets | Inputs | |||||||||||||||
Description | 31-Mar-14 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Liabilities | ||||||||||||||||
2018 Senior unsecured notes | $ | 182,767 | $ | — | $ | 182,767 | $ | — | ||||||||
2021 Senior unsecured notes | 263,786 | — | 263,786 | — | ||||||||||||
Total liabilities | $ | 446,553 | $ | — | $ | 446,553 | $ | — | ||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
Quoted Prices in | Significant Other | Significant | ||||||||||||||
Active Markets for | Observable Inputs | Unobservable | ||||||||||||||
Identical Assets | Inputs | |||||||||||||||
Description | 31-Dec-13 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Liabilities | ||||||||||||||||
2018 Senior unsecured notes | $ | 185,816 | $ | — | $ | 185,816 | $ | — | ||||||||
2021 Senior unsecured notes | 258,004 | — | 258,004 | — | ||||||||||||
Total liabilities | $ | 443,820 | $ | — | $ | 443,820 | $ | — | ||||||||
Other_Accrued_Liabilities_Tabl
Other Accrued Liabilities (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Other Liabilities Disclosure [Abstract] | ' | |||||||
Schedule of Other Accrued Liabilities | ' | |||||||
Components of other accrued liabilities were as follows: | ||||||||
31-Mar-14 | December 31, 2013 | |||||||
Accrued interest | $ | 10,301 | $ | 11,038 | ||||
Property and other taxes payable | 3,620 | 6,785 | ||||||
Accrued payroll | 1,308 | 2,186 | ||||||
Other | 336 | 233 | ||||||
$ | 15,565 | $ | 20,242 | |||||
LongTerm_Debt_and_Capital_Leas1
Long-Term Debt and Capital Leases (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Schedule of long-term debt | ' | |||||||
At March 31, 2014 and December 31, 2013, long-term debt consisted of the following: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
$637,5003 Revolving credit facility at variable interest rate (3.16%1 weighted average at March 31, 2014), due March 2018 secured by substantially all of the Partnership’s assets, including, without limitation, inventory, accounts receivable, vessels, equipment, fixed assets and the interests in the Partnership’s operating subsidiaries and equity method investees | $ | 220,000 | $ | 235,000 | ||||
$200,0002 Senior notes, 8.875% interest, net of unamortized discount of $1,228 and $1,305, respectively, issued March 2010 and due April 2018, unsecured | 173,772 | 173,695 | ||||||
$250,000 Senior notes, 7.250% interest, issued February 2013 and due February 2021, unsecured | 250,000 | 250,000 | ||||||
Total long-term debt | 643,772 | 658,695 | ||||||
Less current installments | — | — | ||||||
Long-term debt, net of current installments | $ | 643,772 | $ | 658,695 | ||||
1 Interest rate fluctuates based on the LIBOR rate plus an applicable margin set on the date of each advance. The margin above LIBOR is set every three months. Indebtedness under the credit facility bears interest at LIBOR plus an applicable margin or the base prime rate plus an applicable margin. The applicable margin for revolving loans that are LIBOR loans ranges from 2.00% to 3.00% and the applicable margin for revolving loans that are base prime rate loans ranges from 1.00% to 2.00%. The applicable margin for existing LIBOR borrowings at March 31, 2014 is 3.00%. The credit facility contains various covenants which limit the Partnership’s ability to make certain investments and acquisitions; enter into certain agreements; incur indebtedness; sell assets; and make certain amendments to the Partnership's omnibus agreement with Martin Resource Management (the "Omnibus Agreement"). The Partnership is permitted to make quarterly distributions so long as no event of default exists. | ||||||||
2 Pursuant to the Indenture under which the Senior Notes due in 2018 were issued, the Partnership has the option to redeem up to 35% of the aggregate principal amount at a redemption price of 108.875% of the principal amount, plus accrued and unpaid interest with the proceeds of certain equity offerings. On April 1, 2014, the Partnership redeemed the remaining $175,000 of the 8.875% senior unsecured notes due in 2018 from all holders. On April 1, 2014, the Partnership completed private placement add-on of $150,000 in aggregate principal amount of 7.250% senior unsecured notes due February 2021 to qualified institutional buyers under Rule 144A. | ||||||||
3 Effective February 18, 2014, the Partnership increased the maximum amount of borrowings and letters of credit available under the Partnership's revolving credit facility from $600,000 to $637,500 and extended the maturity date of the facility from April 2016 to March 2018. |
Partners_Capital_Partners_Capi
Partners' Capital Partners' Capital (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Partners' Capital Notes [Abstract] | ' | |||||||
Reconciliation of net income to partners interest in net income | ' | |||||||
The following is a reconciliation of net income allocated to the general partner and limited partners for purposes of calculating net income attributable to limited partners per unit: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Net income attributable to Martin Midstream Partners L.P. | $ | 11,795 | $ | 16,637 | ||||
Less general partner’s interest in net income: | ||||||||
Distributions payable on behalf of general partner interest | 472 | 456 | ||||||
Distributions payable to the general partner interest in excess of earnings allocable to the general partner interest | (236 | ) | (123 | ) | ||||
Less income allocable to unvested restricted units | 32 | 43 | ||||||
Limited partners’ interest in net income | $ | 11,527 | $ | 16,261 | ||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Related Party Transactions [Abstract] | ' | |||||||
The impact of Related Party Transactions | ' | |||||||
The impact of related party revenues from sales of products and services is reflected in the consolidated and condensed financial statements as follows: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Revenues: | ||||||||
Terminalling and storage | $ | 18,010 | $ | 17,328 | ||||
Marine transportation | 5,849 | 6,843 | ||||||
Product sales: | ||||||||
Natural gas services | 829 | 9 | ||||||
Sulfur services | 955 | 1,133 | ||||||
Terminalling and storage | 108 | 67 | ||||||
1,892 | 1,209 | |||||||
$ | 25,751 | $ | 25,380 | |||||
The impact of related party cost of products sold is reflected in the consolidated and condensed financial statements as follows: | ||||||||
Cost of products sold: | ||||||||
Natural gas services | $ | 8,453 | $ | 8,556 | ||||
Sulfur services | 4,865 | 4,534 | ||||||
Terminalling and storage | 9,844 | 11,961 | ||||||
$ | 23,162 | $ | 25,051 | |||||
The impact of related party operating expenses is reflected in the consolidated and condensed financial statements as follows: | ||||||||
Operating Expenses: | ||||||||
Marine transportation | $ | 9,664 | $ | 10,058 | ||||
Natural gas services | 606 | 485 | ||||||
Sulfur services | 1,486 | 2,355 | ||||||
Terminalling and storage | 6,483 | 5,076 | ||||||
$ | 18,239 | $ | 17,974 | |||||
The impact of related party selling, general and administrative expenses is reflected in the consolidated and condensed financial statements as follows: | ||||||||
Selling, general and administrative: | ||||||||
Marine transportation | $ | 8 | $ | 15 | ||||
Natural gas services | 958 | 579 | ||||||
Sulfur services | 843 | 806 | ||||||
Terminalling and storage | 385 | 361 | ||||||
Indirect overhead allocation, net of reimbursement | 3,190 | 2,657 | ||||||
$ | 5,384 | $ | 4,418 | |||||
Business_Segments_Tables
Business Segments (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | |||||||||||||||||||||||
Three Months Ended March 31, 2014 | Operating Revenues | Intersegment Revenues Eliminations | Operating Revenues after Eliminations | Depreciation and Amortization | Operating Income (Loss) after Eliminations | Capital Expenditures | ||||||||||||||||||
Terminalling and storage | $ | 87,297 | $ | (1,223 | ) | $ | 86,074 | $ | 8,975 | $ | 8,311 | $ | 15,600 | |||||||||||
Natural gas services | 333,633 | — | 333,633 | 504 | 9,465 | 500 | ||||||||||||||||||
Sulfur services | 54,207 | — | 54,207 | 1,983 | 8,068 | 1,447 | ||||||||||||||||||
Marine transportation | 24,114 | (1,000 | ) | 23,114 | 2,530 | 2,962 | 3,928 | |||||||||||||||||
Indirect selling, general and administrative | — | — | — | — | (4,897 | ) | — | |||||||||||||||||
Total | $ | 499,251 | $ | (2,223 | ) | $ | 497,028 | $ | 13,992 | $ | 23,909 | $ | 21,475 | |||||||||||
Three Months Ended March 31, 2013 | Operating Revenues | Intersegment Revenues Eliminations | Operating Revenues after Eliminations | Depreciation and Amortization | Operating Income (Loss) after Eliminations | Capital Expenditures | ||||||||||||||||||
Terminalling and storage | $ | 80,353 | $ | (1,141 | ) | $ | 79,212 | $ | 7,096 | $ | 9,983 | $ | 14,049 | |||||||||||
Natural gas services | 259,439 | — | 259,439 | 292 | 8,462 | 115 | ||||||||||||||||||
Sulfur services | 70,385 | — | 70,385 | 1,966 | 9,344 | 201 | ||||||||||||||||||
Marine transportation | 25,232 | (582 | ) | 24,650 | 2,539 | 2,539 | 350 | |||||||||||||||||
Indirect selling, general and administrative | — | — | — | — | (3,943 | ) | — | |||||||||||||||||
Total | $ | 435,409 | $ | (1,723 | ) | $ | 433,686 | $ | 11,893 | $ | 26,385 | $ | 14,715 | |||||||||||
Assets by segment | ' | |||||||||||||||||||||||
The Partnership's assets by reportable segment as of March 31, 2014 and December 31, 2013, are as follows: | ||||||||||||||||||||||||
31-Mar-14 | December 31, 2013 | |||||||||||||||||||||||
Total assets: | ||||||||||||||||||||||||
Terminalling and storage | $ | 468,527 | $ | 461,160 | ||||||||||||||||||||
Natural gas services | 274,584 | 320,631 | ||||||||||||||||||||||
Sulfur services | 161,160 | 151,982 | ||||||||||||||||||||||
Marine transportation | 163,341 | 164,146 | ||||||||||||||||||||||
Total assets | $ | 1,067,612 | $ | 1,097,919 | ||||||||||||||||||||
Unit_Based_Awards_Tables
Unit Based Awards (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||
Schedule of compensation costs related to unit based plan | ' | |||||||
Amounts recognized in selling, general, and administrative expense in the consolidated and condensed financial statements with respect to these plans are as follows: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Employees | $ | 122 | $ | 195 | ||||
Non-employee directors | 57 | 61 | ||||||
Total unit-based compensation expense | $ | 179 | $ | 256 | ||||
Summary of restricted unit activity | ' | |||||||
A summary of the restricted unit activity for the three months ended March 31, 2014 is provided below: | ||||||||
Number of Units | Weighted Average Grant-Date Fair Value Per Unit | |||||||
Non-vested, beginning of period | 72,998 | $ | 33.26 | |||||
Granted | 6,400 | $ | 43.05 | |||||
Vested | (5,750 | ) | $ | 40.34 | ||||
Forfeited | (2,750 | ) | $ | 31.06 | ||||
Non-Vested, end of period | 70,898 | $ | 33.65 | |||||
Aggregate intrinsic value, end of period | $ | 3,052 | ||||||
Summary of aggregate intrinsic value and fair value of units vested | ' | |||||||
A summary of the restricted units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) during the three and nine months ended March 31, 2014 and 2013 are provided below: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Aggregate intrinsic value of units vested | $ | 249 | $ | 153 | ||||
Fair value of units vested | $ | 247 | $ | 168 | ||||
General_Details
General (Details) | 3 Months Ended | |||
Mar. 31, 2014 | Jul. 31, 2012 | Mar. 31, 2014 | Aug. 30, 2013 | |
segment | Martin Resource Management [Member] | Martin Resource Management [Member] | ||
director | ||||
Business Description [Line Items] | ' | ' | ' | ' |
Number of primary business lines | 4 | ' | ' | ' |
Ownership percentage | ' | 50.00% | 51.00% | 100.00% |
Ownership percentage by parent | ' | ' | ' | 49.00% |
Economic ownership percentage by parent | ' | ' | ' | 50.00% |
Number of directors appointed | ' | ' | ' | 2 |
Acquisitions_Details
Acquisitions (Details) (USD $) | 3 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 0 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Sep. 30, 2013 | Mar. 31, 2014 | Aug. 05, 2013 | Jun. 13, 2013 | Mar. 31, 2014 | Feb. 28, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Sep. 30, 2013 | Feb. 28, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Feb. 28, 2013 | Jun. 13, 2013 | Jun. 13, 2013 | Jun. 13, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Martin Resource Management [Member] | Sulfur Production Facility [Member] | Sulfur Production Facility [Member] | NL Grease, LLC [Member] | NL Grease, LLC [Member] | Florida Marine Transporters, Inc. [Member] | Marine transportation [Member] | Marine transportation [Member] | Marine transportation [Member] | Marine transportation [Member] | Natural gas services [Member] | Natural gas services [Member] | Natural gas services [Member] | Technology-Based Intangible Assets [Member] | Customer Lists [Member] | Noncompete Agreements [Member] | Partners' Capital [Member] | Partners' Capital [Member] | |||
barge | barge | Martin Resource Management [Member] | Florida Marine Transporters, Inc. [Member] | Florida Marine Transporters, Inc. [Member] | NL Grease, LLC [Member] | NL Grease, LLC [Member] | NL Grease, LLC [Member] | Martin Resource Management [Member] | NL Grease, LLC [Member] | |||||||||||
push_boat | ||||||||||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Inland Tank Barges | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Excess carrying value of assets over the purchase price | ' | ' | $7,100 | ' | $4,118 | $12,148 | ' | ' | ' | ' | $6,799 | ' | ' | ' | ' | $2,418 | $2,218 | $477 | $301 | $55 |
Revenue | 497,028 | 433,686 | ' | 667 | ' | ' | 3,652 | ' | 23,114 | 24,650 | ' | ' | 333,633 | 259,439 | ' | ' | ' | ' | ' | ' |
Net income | 11,795 | 16,637 | ' | 191 | ' | ' | 162 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other assets | ' | ' | ' | ' | ' | 5,113 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Useful life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | '3 years | '5 years | ' | ' |
Weighted average useful life | ' | ' | ' | ' | ' | '6 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Liquefied Petroleum Gas Pressure Barges | ' | ' | ' | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Commercial Push Boats | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Pressure Barges | ' | ' | ' | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price of business acquisition | ' | ' | ' | ' | ' | ' | ' | $50,801 | ' | ' | ' | $8,201 | ' | ' | $42,600 | ' | ' | ' | ' | ' |
Schedule_of_Purchase_Price_All
Schedule of Purchase Price Allocation (Details) (USD $) | Aug. 05, 2013 | Jun. 13, 2013 |
In Thousands, unless otherwise specified | Sulfur Production Facility [Member] | NL Grease, LLC [Member] |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ' | ' |
Inventory | $162 | $1,513 |
Property, plant and equipment | 4,000 | 6,136 |
Other assets | ' | 5,113 |
Other accrued liabilities | ' | -168 |
Current liabilities | -44 | ' |
Other long-term obligations | ' | -446 |
Total | $4,118 | $12,148 |
Discontinued_operations_and_di1
Discontinued operations and divestitures (Details) (USD $) | 0 Months Ended | 1 Months Ended |
In Thousands, unless otherwise specified | Sep. 18, 2012 | Jul. 31, 2012 |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ' | ' |
Proceeds from Divestiture of Businesses | $1,530 | $273,269 |
Unconsolidated interest ownership | ' | 50.00% |
Waskom [Member] | ' | ' |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ' | ' |
Unconsolidated interest ownership | ' | 50.00% |
Inventories_Details
Inventories (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Natural gas liquids | $21,602 | $31,859 |
Sulfur | 18,515 | 8,912 |
Sulfur based products | 16,626 | 17,584 |
Lubricants | 35,173 | 33,847 |
Other | 2,855 | 2,700 |
Inventories | $94,771 | $94,902 |
Investments_in_Unconsolidated_2
Investments in Unconsolidated Entities and Joint Ventures (Details) (USD $) | 3 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Jul. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Redbird [Member] | Redbird [Member] | Redbird [Member] | Redbird [Member] | Martin Energy Trading LLC [Member] | Martin Energy Trading LLC [Member] | Martin Energy Trading LLC [Member] | Martin Energy Trading LLC [Member] | Caliber [Member] | Caliber [Member] | Caliber [Member] | Cardinal Gas Storage Partners LLC [Member] | Cardinal Gas Storage Partners LLC [Member] | Cardinal Gas Storage Partners LLC [Member] | |||||
Common Class B [Member] | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unconsolidated interest ownership | ' | ' | ' | 50.00% | ' | ' | ' | 42.21% | 100.00% | ' | 100.00% | ' | ' | ' | 50.00% | ' | ' | ' |
Proceeds from sale of equity method investment | ' | ' | ' | ' | ' | ' | ' | ' | $15,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Partnership's interest in cash of the unconsolidated equity-method investees | 6,287 | ' | 3,703 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of components of investment in unconsolidated entities and components of equity in earnings of unconsolidated entities [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment in unconsolidated entities | 129,336 | ' | 128,662 | ' | 113,781 | ' | 113,662 | ' | ' | 15,555 | ' | 15,000 | ' | ' | ' | ' | ' | ' |
Equity in loss of unconsolidated entities | -296 | -374 | ' | ' | -851 | -216 | ' | ' | ' | 555 | 0 | ' | 0 | -158 | ' | ' | ' | ' |
Select financial information for significant unconsolidated equity-method investees [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 646,963 | ' | 661,816 |
Members' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 346,860 | ' | 346,584 |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,429 | 8,087 | ' |
Net Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($2,017) | $451 | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total liabilities | $446,553 | $443,820 |
Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total liabilities | 0 | 0 |
Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total liabilities | 446,553 | 443,820 |
Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total liabilities | 0 | 0 |
2018 Senior unsecured notes [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Notes Payable, Fair Value Disclosure | 182,767 | 185,816 |
2018 Senior unsecured notes [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Notes Payable, Fair Value Disclosure | 0 | 0 |
2018 Senior unsecured notes [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Notes Payable, Fair Value Disclosure | 182,767 | 185,816 |
2018 Senior unsecured notes [Member] | Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Notes Payable, Fair Value Disclosure | 0 | 0 |
2021 Senior unsecured notes [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Notes Payable, Fair Value Disclosure | 263,786 | 258,004 |
2021 Senior unsecured notes [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Notes Payable, Fair Value Disclosure | 0 | 0 |
2021 Senior unsecured notes [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Notes Payable, Fair Value Disclosure | 263,786 | 258,004 |
2021 Senior unsecured notes [Member] | Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Notes Payable, Fair Value Disclosure | $0 | $0 |
Other_Accrued_Liabilities_Deta
Other Accrued Liabilities (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Liabilities Disclosure [Abstract] | ' | ' |
Accrued interest | $10,301 | $11,038 |
Property and other taxes payable | 3,620 | 6,785 |
Accrued payroll | 1,308 | 2,186 |
Other | 336 | 233 |
Total Other Accrued Liabilities | $15,565 | $20,242 |
LongTerm_Debt_and_Capital_Leas2
Long-Term Debt and Capital Leases (Details) (USD $) | 3 Months Ended | 3 Months Ended | 3 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | ||||||||||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Feb. 18, 2014 | Mar. 27, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2010 | Mar. 31, 2014 | Dec. 31, 2013 | Apr. 02, 2014 | Feb. 28, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Apr. 02, 2014 | |||
Revolving Loan Facility [Member] | Revolving Loan Facility [Member] | Revolving Loan Facility [Member] | Revolving Loan Facility [Member] | LIBOR [Member] | LIBOR [Member] | LIBOR [Member] | Prime Rate [Member] | Prime Rate [Member] | Senior Notes 8.875% [Member] | Senior Notes 8.875% [Member] | Senior Notes 8.875% [Member] | Senior Notes 8.875% [Member] | Senior Notes 7.250% [Member] | Senior Notes 7.250% [Member] | Senior Notes 7.250% [Member] | Senior Notes 7.250% [Member] | ||||||
Maximum [Member] | Maximum [Member] | Revolving Loan Facility [Member] | Revolving Loan Facility [Member] | Revolving Loan Facility [Member] | Revolving Loan Facility [Member] | Revolving Loan Facility [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | ||||||||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Interest rate terms | 'The applicable margin for revolving loans that are LIBOR loans ranges from 2.00% to 3.25% and the applicable margin for revolving loans that are base prime rate loans ranges from 1.00% to 2.25%.  The applicable margin for existing LIBOR borrowings is 3.00%.  Effective October 1, 2012, the applicable margin for existing LIBOR borrowings remained at 3.00%.  Effective January 1, 2013, the applicable margin for existing LIBOR borrowings will decrease to 2.25%. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Total long-term debt and capital lease obligations | $643,772,000 | ' | $658,695,000 | $220,000,000 | $235,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | $173,772,000 | $173,695,000 | ' | ' | $250,000,000 | $250,000,000 | ' | ||
Less current installments | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Long-term debt and capital lease obligations, net of current installments | 643,772,000 | ' | 658,695,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Face amount | ' | ' | ' | 637,500,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | 200,000,000 | [2] | ' | ' | ' | 250,000,000 | ' | ' | 150,000,000 |
Stated interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.88% | ' | ' | 8.88% | 7.25% | ' | ' | ' | ||
Unamortized discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,228,000 | 1,305,000 | ' | ' | ' | ' | ' | ||
Weighted average interest rate | ' | ' | ' | 3.16% | [3] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Maturity date | ' | ' | ' | 31-Mar-18 | ' | ' | ' | ' | ' | ' | ' | ' | 30-Apr-18 | ' | ' | ' | 28-Feb-21 | ' | ' | ' | ||
Applicable margins | ' | ' | ' | ' | ' | ' | ' | 3.00% | 2.00% | 3.00% | 1.00% | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ||
Partnership redemption option maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' | ' | ' | ' | ' | ||
Partnership senior note redemption option price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 108.88% | ' | ' | ' | ' | ' | ' | ||
Debt redeemed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 175,000,000 | ' | ' | ' | ' | ||
Maximum amount of borrowings and letters of credit available under Credit Facility | ' | ' | ' | ' | ' | 637,500,000 | 600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Cash paid for interest | 11,689,000 | 2,217,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Capitalized interest | $388,000 | $180,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
[1] | Effective February 18, 2014, the Partnership increased the maximum amount of borrowings and letters of credit available under the Partnership's revolving credit facility from $600,000 to $637,500 and extended the maturity date of the facility from April 2016 to March 2018. | |||||||||||||||||||||
[2] | Pursuant to the Indenture under which the Senior Notes due in 2018 were issued, the Partnership has the option to redeem up to 35% of the aggregate principal amount at a redemption price of 108.875% of the principal amount, plus accrued and unpaid interest with the proceeds of certain equity offerings. On April 1, 2014, the Partnership redeemed the remaining $175,000 of the 8.875% senior unsecured notes due in 2018 from all holders. On April 1, 2014, the Partnership completed private placement add-on of $150,000 in aggregate principal amount of 7.250% senior unsecured notes due February 2021 to qualified institutional buyers under Rule 144A. | |||||||||||||||||||||
[3] | Interest rate fluctuates based on the LIBOR rate plus an applicable margin set on the date of each advance. The margin above LIBOR is set every three months. Indebtedness under the credit facility bears interest at LIBOR plus an applicable margin or the base prime rate plus an applicable margin. The applicable margin for revolving loans that are LIBOR loans ranges from 2.00% to 3.00% and the applicable margin for revolving loans that are base prime rate loans ranges from 1.00% to 2.00%. The applicable margin for existing LIBOR borrowings at March 31, 2014 is 3.00%. The credit facility contains various covenants which limit the Partnership’s ability to make certain investments and acquisitions; enter into certain agreements; incur indebtedness; sell assets; and make certain amendments to the Partnership's omnibus agreement with Martin Resource Management (the "Omnibus Agreement"). The Partnership is permitted to make quarterly distributions so long as no event of default exists. |
Partners_Capital_Details
Partners' Capital (Details) | 1 Months Ended | 3 Months Ended | 3 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2014 | Jul. 31, 2012 | Mar. 31, 2014 | Aug. 30, 2013 | Mar. 31, 2014 | |
Martin Resource Management [Member] | Martin Resource Management [Member] | Martin Resource Management [Member] | ||||
Limited Partners' Capital Account [Line Items] | ' | ' | ' | ' | ' | ' |
Common limited partner units | 26,754,856 | 26,754,856 | ' | ' | ' | 5,093,267 |
Ownership percentage | ' | 98.00% | ' | ' | ' | 19.00% |
General partner interest percentage | 2.00% | 2.00% | ' | ' | ' | 2.00% |
Voting interest | ' | ' | 50.00% | 51.00% | 100.00% | 19.00% |
Partners_Capital_Issuance_of_C
Partners' Capital Issuance of Common Units (Details) (USD $) | 1 Months Ended | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 |
Partners' Capital Notes [Abstract] | ' | ' | ' |
Proceeds from the public offering | $5,654 | $5,235 | $0 |
General partner contribution to maintain GP interest | $114 | $114 | $37 |
General partner interest percentage | 2.00% | 2.00% | ' |
Partners_Capital_Incentive_Dis
Partners' Capital Incentive Distribution Rights and Distributions of Available Cash (Details) (USD $) | 1 Months Ended | 3 Months Ended | |||||||
Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Oct. 02, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
Martin Midstream GP LLC [Member] | Martin Midstream GP LLC [Member] | Martin Midstream GP LLC [Member] | Target Level 1 [Member] | Target Level 2 [Member] | Target Level 3 [Member] | Target Level 4 [Member] | |||
Martin Midstream GP LLC [Member] | Martin Midstream GP LLC [Member] | Martin Midstream GP LLC [Member] | Martin Midstream GP LLC [Member] | ||||||
Limited Partners' Capital Account [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
General partner interest percentage | 2.00% | 2.00% | 2.00% | ' | ' | ' | ' | ' | ' |
Incentive distribution foregone | ' | ' | $11,867,000 | ' | $18,000,000 | ' | ' | ' | ' |
Incentive distribution foregone remaining | ' | ' | 6,133,000 | ' | ' | ' | ' | ' | ' |
Target cash distribution, percent | ' | ' | ' | ' | ' | 2.00% | 15.00% | 25.00% | 50.00% |
Target cash distribution (in dollars per share) | ' | ' | ' | ' | ' | $0.55 | $0.63 | $0.75 | ' |
Incentive distribution | ' | ' | $0 | $0 | ' | ' | ' | ' | ' |
Distribution period | ' | '45 days | ' | ' | ' | ' | ' | ' | ' |
Partners_Capital_Reconciliatio
Partners' Capital Reconciliation of net income to partners interest in net income (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Reconciliation of Net Income from Continuing and Discontinued Operations [Line Items] | ' | ' |
Net income attributable to Martin Midstream Partners L.P. | $11,795 | $16,637 |
Less general partner’s interest in net income: | ' | ' |
Less income allocable to unvested restricted units | 32 | 43 |
Limited partners' interest in net income | 11,527 | 16,261 |
Weighted average limited partner units outstanding basic (in units) | 26,571,666 | 26,560,654 |
Increase in units outstanding due to the dilutive effect of restricted units granted (in units) | 33,101 | 8,756 |
Segment, Continuing Operations [Member] | ' | ' |
Reconciliation of Net Income from Continuing and Discontinued Operations [Line Items] | ' | ' |
Net income attributable to Martin Midstream Partners L.P. | 11,795 | 16,637 |
Less general partner’s interest in net income: | ' | ' |
Distributions payable on behalf of general partner interest | 472 | 456 |
Distributions payable to the general partner interest in excess of earnings allocable to the general partner interest | -236 | -123 |
Less income allocable to unvested restricted units | 32 | 43 |
Limited partners' interest in net income | $11,527 | $16,261 |
Related_Party_Transactions_Nar
Related Party Transactions Narrative (Details) | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2014 | Jul. 31, 2012 | |
Related Party Transaction [Line Items] | ' | ' | ' |
General partner interest percentage | 2.00% | 2.00% | ' |
Ownership percentage | ' | ' | 50.00% |
Martin Resource Management [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
General partner interest percentage | ' | 2.00% | ' |
Number of shares owned (in units) | 5,093,267 | 5,093,267 | ' |
Ownership percentage | 19.00% | 19.00% | ' |
Martin Resource Management [Member] | MMGP Holdings, LLC [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
General partner interest percentage | ' | 51.00% | ' |
Related_Party_Transactions_Omn
Related Party Transactions Omnibus Agreement Narrative (Details) (Omnibus Agreement [Member], Martin Resource Management [Member], USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Omnibus Agreement [Member] | Martin Resource Management [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Noncompete restriction threshold | $5,000,000 | ' |
Noncompete restriction ownership option opportunity threshold minimum | 5,000,000 | ' |
Noncompete restriction ownership option opportunity threshold minimum with equity limitation | 5,000,000 | ' |
Equity limitation on ownership restriction percentage | 20.00% | ' |
Approved annual reimbursements for indirect expenses | 12,535,000 | ' |
Indirect expenses reimbursed | $3,190,000 | $2,657,000 |
Related_Party_Transactions_Mot
Related Party Transactions Motor Carrier Agreement Narrative (Details) (Motor Carrier Agreement [Member], Martin Resource Management [Member]) | 3 Months Ended |
Mar. 31, 2014 | |
Motor Carrier Agreement [Member] | Martin Resource Management [Member] | ' |
Related Party Transaction [Line Items] | ' |
Automatic consecutive term renewal period | '1 year |
Termination written notice, minimum | '30 days |
Partnership notice period to terminate agreement | '90 days |
Related_Party_Transactions_Mar
Related Party Transactions Marine Agreements Narrative (Details) (Marine Transportation Agreement [Member], Martin Resource Management [Member]) | 3 Months Ended |
Mar. 31, 2014 | |
Marine Transportation Agreement [Member] | Martin Resource Management [Member] | ' |
Related Party Transaction [Line Items] | ' |
Automatic consecutive term renewal period | '1 year |
Termination written notice, minimum | '60 days |
Related_Party_Transactions_Ter
Related Party Transactions Terminal Services Agreements Narrative (Details) | Mar. 31, 2014 |
Related Party Transaction [Line Items] | ' |
Initial term of agreement | '5 years |
Terminal Services Agreements [Member] | Martin Resource Management [Member] | ' |
Related Party Transaction [Line Items] | ' |
Termination written notice, minimum | '60 days |
Marine Transportation Agreement [Member] | ' |
Related Party Transaction [Line Items] | ' |
Number of agreements | 3 |
Marine Transportation Agreement [Member] | Martin Resource Management [Member] | ' |
Related Party Transaction [Line Items] | ' |
Termination written notice, minimum | '60 days |
Related_Party_Transactions_Oth
Related Party Transactions Other Agreements Narrative (Details) | 3 Months Ended |
Mar. 31, 2014 | |
bbl | |
Related Party Transaction [Line Items] | ' |
Initial term of agreement | '5 years |
Cross Tolling Agreement [Member] | Martin Resource Management [Member] | ' |
Related Party Transaction [Line Items] | ' |
Initial term of agreement | '22 years |
Production minimum per day (in bbl) | 6,500 |
Annual escalation benchmark | 3.00% |
Period to negotiate terms | '3 years |
Sulfuric Acid Sales Agency Agreement [Member] | Martin Resource Management [Member] | ' |
Related Party Transaction [Line Items] | ' |
Partnership notice period to terminate agreement | '180 days |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues: | ' | ' |
Terminalling and storage | $18,010 | $17,328 |
Marine transportation | 5,849 | 6,843 |
Product sales: | ' | ' |
Product Sales Related Party | 1,892 | 1,209 |
Cost of products sold: | ' | ' |
Natural gas services | 8,453 | 8,556 |
Sulfur services | 4,865 | 4,534 |
Terminalling and storage | 9,844 | 11,961 |
Operating Expenses: | ' | ' |
Operating expenses | 18,239 | 17,974 |
Related Party [Member] | ' | ' |
Revenues: | ' | ' |
Terminalling and storage | 18,010 | 17,328 |
Marine transportation | 5,849 | 6,843 |
Product sales: | ' | ' |
Product Sales Related Party | 1,892 | 1,209 |
Revenue from Related Parties | 25,751 | 25,380 |
Cost of products sold: | ' | ' |
Natural gas services | 8,453 | 8,556 |
Sulfur services | 4,865 | 4,534 |
Terminalling and storage | 23,162 | 25,051 |
Operating Expenses: | ' | ' |
Operating expenses | 18,239 | 17,974 |
Selling, general and administrative: | ' | ' |
Selling, general and administrative | 5,384 | 4,418 |
Related Party [Member] | Marine transportation [Member] | ' | ' |
Operating Expenses: | ' | ' |
Operating expenses | 9,664 | 10,058 |
Selling, general and administrative: | ' | ' |
Selling, general and administrative | 8 | 15 |
Related Party [Member] | Natural gas services [Member] | ' | ' |
Product sales: | ' | ' |
Product Sales Related Party | 829 | 9 |
Operating Expenses: | ' | ' |
Operating expenses | 606 | 485 |
Selling, general and administrative: | ' | ' |
Selling, general and administrative | 958 | 579 |
Related Party [Member] | Sulfur services [Member] | ' | ' |
Product sales: | ' | ' |
Product Sales Related Party | 955 | 1,133 |
Operating Expenses: | ' | ' |
Operating expenses | 1,486 | 2,355 |
Selling, general and administrative: | ' | ' |
Selling, general and administrative | 843 | 806 |
Related Party [Member] | Terminalling and storage [Member] | ' | ' |
Product sales: | ' | ' |
Product Sales Related Party | 108 | 67 |
Cost of products sold: | ' | ' |
Terminalling and storage | 9,844 | 11,961 |
Operating Expenses: | ' | ' |
Operating expenses | 6,483 | 5,076 |
Selling, general and administrative: | ' | ' |
Selling, general and administrative | 385 | 361 |
Related Party [Member] | Indirect overhead allocation, net of reimbursement [Member] | ' | ' |
Selling, general and administrative: | ' | ' |
Selling, general and administrative | $3,190 | $2,657 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | ' | ' |
State | $300 | $307 |
Business_Segments_Details
Business Segments (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
segment | |||
Segment Reporting [Abstract] | ' | ' | ' |
Number of Reportable Segments | 4 | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Operating Revenues | $499,251 | $435,409 | ' |
Intersegment Revenues Eliminations | -2,223 | -1,723 | ' |
Total revenues | 497,028 | 433,686 | ' |
Depreciation and amortization | 13,992 | 11,893 | ' |
Operating Income (Loss) after Eliminations | 23,909 | 26,385 | ' |
Capital Expenditures | 21,475 | 14,715 | ' |
Total assets: | ' | ' | ' |
Total assets | 1,067,612 | ' | 1,097,919 |
Terminalling and storage [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Operating Revenues | 87,297 | 80,353 | ' |
Intersegment Revenues Eliminations | -1,223 | -1,141 | ' |
Total revenues | 86,074 | 79,212 | ' |
Depreciation and amortization | 8,975 | 7,096 | ' |
Operating Income (Loss) after Eliminations | 8,311 | 9,983 | ' |
Capital Expenditures | 15,600 | 14,049 | ' |
Total assets: | ' | ' | ' |
Total assets | 468,527 | ' | 461,160 |
Natural gas services [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Operating Revenues | 333,633 | 259,439 | ' |
Intersegment Revenues Eliminations | 0 | 0 | ' |
Total revenues | 333,633 | 259,439 | ' |
Depreciation and amortization | 504 | 292 | ' |
Operating Income (Loss) after Eliminations | 9,465 | 8,462 | ' |
Capital Expenditures | 500 | 115 | ' |
Total assets: | ' | ' | ' |
Total assets | 274,584 | ' | 320,631 |
Sulfur services [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Operating Revenues | 54,207 | 70,385 | ' |
Intersegment Revenues Eliminations | 0 | 0 | ' |
Total revenues | 54,207 | 70,385 | ' |
Depreciation and amortization | 1,983 | 1,966 | ' |
Operating Income (Loss) after Eliminations | 8,068 | 9,344 | ' |
Capital Expenditures | 1,447 | 201 | ' |
Total assets: | ' | ' | ' |
Total assets | 161,160 | ' | 151,982 |
Marine transportation [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Operating Revenues | 24,114 | 25,232 | ' |
Intersegment Revenues Eliminations | -1,000 | -582 | ' |
Total revenues | 23,114 | 24,650 | ' |
Depreciation and amortization | 2,530 | 2,539 | ' |
Operating Income (Loss) after Eliminations | 2,962 | 2,539 | ' |
Capital Expenditures | 3,928 | 350 | ' |
Total assets: | ' | ' | ' |
Total assets | 163,341 | ' | 164,146 |
Indirect selling, general and administrative [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Operating Revenues | 0 | 0 | ' |
Intersegment Revenues Eliminations | 0 | 0 | ' |
Total revenues | 0 | 0 | ' |
Depreciation and amortization | 0 | 0 | ' |
Operating Income (Loss) after Eliminations | -4,897 | -3,943 | ' |
Capital Expenditures | $0 | $0 | ' |
Unit_Based_Awards_Schedule_of_
Unit Based Awards Schedule of compensation costs relate to unit based plan (Details) (Selling, General and Administrative Expenses [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Total unit-based compensation expense | $179 | $256 |
Employees [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Total unit-based compensation expense | 122 | 195 |
Non-employee Directors [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Total unit-based compensation expense | $57 | $61 |
Unit_Based_Awards_Summary_of_r
Unit Based Awards Summary of restricted unit activity (Details) (Restricted Units [Member], USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Restricted Units [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' |
Non-vested, beginning of period, Number of Units | 72,998 |
Non-vested, beginning of period, Weighted Average Grant-Date Fair Value Per Unit | $33.26 |
Granted, Number of Units | 6,400 |
Granted, Weighted Average Grant-Date Fair Value Per Unit | $43.05 |
Vested, Number of Units | -5,750 |
Vested, Weighted Average Grant-Date Fair Value Per Unit | $40.34 |
Forfeited, Number of Units | -2,750 |
Forfeited, Weighted Average Grant-Date Fair Value Per Unit | $31.06 |
Non-vested, end of period, Number of Units | 70,898 |
Non-vested, end of period, Weighted Average Grant-Date Fair Value Per Unit | $33.65 |
Aggregate intrinsic value, end of period | $3,052,000 |
Unit_Based_Awards_Summary_of_a
Unit Based Awards Summary of aggregate intrinsic value and fair value of units vested (Details) (Restricted Units [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Restricted Units [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Aggregate intrinsic value of units vested | $249 | $153 |
Fair value of units vested | $247 | $168 |
Unit_Based_Awards_Narrative_De
Unit Based Awards Narrative (Details) (USD $) | 3 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of plan components | 2 |
Number of shares authorized | 725,000 |
Restricted Units [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of shares authorized | 241,667 |
Unrecognized compensation cost related to non-vested restricted units | $1,643 |
Weighted average period for recognition | '2 years 2 months 9 days |
Restricted Units [Member] | Non-employee Directors [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Vesting period | '4 years |
Restricted Units [Member] | Employees [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Vesting period | '3 years |
Unit Options [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of shares authorized | 483,333 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | Mar. 31, 2010 | Apr. 23, 2014 | Apr. 02, 2014 | Apr. 02, 2014 | Apr. 02, 2014 | |
Senior Notes [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||
Senior Notes 8.875% [Member] | Senior Notes [Member] | Senior Notes [Member] | Interest Rate Swap [Member] | |||
Senior Notes 7.250% [Member] | Senior Notes 8.875% [Member] | Designated as Hedging Instrument [Member] | ||||
Fair Value Hedging [Member] | ||||||
derivative | ||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | |
Number of derivative agreements | ' | ' | ' | ' | 2 | |
Notional amount | ' | ' | ' | ' | $100,000,000 | |
Stated interest rate | 8.88% | ' | 7.25% | 8.88% | ' | |
Face amount | 200,000,000 | [1] | ' | 150,000,000 | ' | ' |
Debt redeemed | ' | ' | ' | 175,000,000 | ' | |
Prepayment premium | ' | ' | ' | 7,767,000 | ' | |
Write-off of unamortized debt issuance costs and unamortized debt discount | ' | ' | ' | $3,871,000 | ' | |
Dividends declared | ' | $0.79 | ' | ' | ' | |
Estimated annualized dividends | ' | $3.15 | ' | ' | ' | |
[1] | Pursuant to the Indenture under which the Senior Notes due in 2018 were issued, the Partnership has the option to redeem up to 35% of the aggregate principal amount at a redemption price of 108.875% of the principal amount, plus accrued and unpaid interest with the proceeds of certain equity offerings. On April 1, 2014, the Partnership redeemed the remaining $175,000 of the 8.875% senior unsecured notes due in 2018 from all holders. On April 1, 2014, the Partnership completed private placement add-on of $150,000 in aggregate principal amount of 7.250% senior unsecured notes due February 2021 to qualified institutional buyers under Rule 144A. |