Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 26, 2019 | |
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 | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding (in shares) | 38,899,590 |
CONSOLIDATED AND CONDENSED BALA
CONSOLIDATED AND CONDENSED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | [1] |
Assets | |||
Cash | $ 227 | $ 300 | |
Accounts and other receivables, less allowance for doubtful accounts of $675 and $576, respectively | 77,420 | 90,757 | |
Product exchange receivables | 181 | 166 | |
Inventories (Note 6) | 70,541 | 86,207 | |
Due from affiliates | 27,035 | 18,845 | |
Fair value of derivatives (Note 10) | 150 | 4 | |
Other current assets | 7,135 | 6,106 | |
Assets held for sale (Note 4) | 5,502 | 5,652 | |
Total current assets | 188,191 | 208,037 | |
Property, plant and equipment, at cost | 1,311,020 | 1,311,573 | |
Accumulated depreciation | (498,138) | (487,840) | |
Property, plant and equipment, net | 812,882 | 823,733 | |
Goodwill | 17,785 | 17,785 | |
Right-of-use assets (Note 9) | 28,109 | ||
Deferred income taxes, net (Note 19) | 24,412 | 0 | |
Other assets, net (Note 10) | 23,689 | 24,073 | |
Total assets | 1,095,068 | 1,073,628 | |
Liabilities and Partners’ Capital | |||
Current installments of long-term debt and finance lease obligations (Notes 8 and 9) | 406,650 | 5,409 | |
Trade and other accounts payable | 76,488 | 65,723 | |
Product exchange payables | 14,234 | 13,237 | |
Due to affiliates | 4,103 | 2,135 | |
Income taxes payable | 989 | 445 | |
Other accrued liabilities (Note 10) | 22,150 | 24,802 | |
Total current liabilities | 524,614 | 111,751 | |
Long-term debt and finance lease obligations, net (Notes 8 and 9) | 377,976 | 662,731 | |
Operating lease liabilities (Note 9) | 19,734 | ||
Other long-term obligations | 8,953 | 10,714 | |
Total liabilities | 931,277 | 785,196 | |
Commitments and contingencies (Note 16) | |||
Partners’ capital (Note 12) | 163,791 | 288,432 | |
Total partners’ capital | 163,791 | 288,432 | |
Total liabilities and partners' capital | $ 1,095,068 | $ 1,073,628 | |
[1] | Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation. |
CONSOLIDATED AND CONDENSED BA_2
CONSOLIDATED AND CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 675 | $ 576 |
CONSOLIDATED AND CONDENSED STAT
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | [1] | ||
Revenues: | ||||
Revenues | $ 250,967 | $ 307,074 | ||
Cost of products sold: (excluding depreciation and amortization) | ||||
Cost of products sold | 152,757 | 192,836 | ||
Expenses: | ||||
Operating expenses | [2] | 56,656 | 56,934 | |
Selling, general and administrative | [2] | 11,144 | 10,939 | |
Depreciation and amortization | 18,982 | 19,990 | [3] | |
Total costs and expenses | 239,539 | 280,699 | ||
Other operating income (loss) | (720) | 8 | ||
Operating income (loss) | 10,708 | 26,383 | ||
Other income (expense): | ||||
Interest expense, net | (13,671) | (12,730) | ||
Other, net | 3 | 0 | ||
Total other expense | (13,668) | (12,730) | ||
Net income (loss) before taxes | (2,960) | 13,653 | ||
Income tax expense | (696) | (149) | ||
Income (loss) from continuing operations | (3,656) | 13,504 | [3] | |
Income from discontinued operations, net of income taxes | 0 | 1,532 | [3] | |
Net income (loss) | (3,656) | 15,036 | [3] | |
Less general partner's interest in net (income) loss | 73 | (256) | [4] | |
Less pre-acquisition (income) allocated to the general partner | 0 | (2,218) | ||
Less (income) loss allocable to unvested restricted units | 2 | (8) | ||
Limited partners' interest in net income (loss) | (3,581) | 12,554 | [4] | |
Terminalling and storage | ||||
Revenues: | ||||
Revenues | [2] | 23,104 | 24,047 | |
Transportation | ||||
Revenues: | ||||
Revenues | [2] | 37,795 | 34,359 | |
Natural gas services | ||||
Revenues: | ||||
Revenues | [2] | 10,934 | 15,356 | |
Sulfur services | ||||
Revenues: | ||||
Revenues | 2,859 | 2,787 | ||
Product sales | ||||
Revenues: | ||||
Revenues | [2] | 176,275 | 230,525 | |
Natural gas services | ||||
Revenues: | ||||
Revenues | [2] | 116,474 | 159,162 | |
Cost of products sold: (excluding depreciation and amortization) | ||||
Cost of products sold | [2] | 106,190 | 138,638 | |
Sulfur services | ||||
Revenues: | ||||
Revenues | [2] | 28,734 | 34,900 | |
Cost of products sold: (excluding depreciation and amortization) | ||||
Cost of products sold | [2] | 19,696 | 22,218 | |
Terminalling and storage | ||||
Revenues: | ||||
Revenues | [2] | 31,067 | 36,463 | |
Cost of products sold: (excluding depreciation and amortization) | ||||
Cost of products sold | [2] | $ 26,871 | $ 31,980 | |
[1] | Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation. | |||
[2] | Related Party Transactions Included Above Three Months Ended March 31, 2019 2018 1 Revenues:* Terminalling and storage $ 18,972 $ 20,008 Transportation 5,643 6,693 Product Sales 421 624 Costs and expenses:* Cost of products sold: (excluding depreciation and amortization) Sulfur services 2,574 2,848 Terminalling and storage 5,909 5,579 Expenses: Operating expenses 22,536 23,088 Selling, general and administrative 8,535 7,926 | |||
[3] | Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation. | |||
[4] | Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation. |
CONSOLIDATED AND CONDENSED ST_2
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS - Allocation of Net Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | [1] | |
Limited partner interest: | |||
Continuing operations | $ (3,581) | $ 11,054 | |
Discontinued operations | 0 | 1,500 | |
Limited partners’ interest in net income (loss) | (3,581) | 12,554 | [2] |
General partner interest: | |||
Continuing operations | (73) | 225 | |
Discontinued operations | 0 | 31 | |
General partner interest in net income (loss) | $ (73) | $ 256 | [2] |
Basic: | |||
Continuing operations (in dollars per share) | $ (0.09) | $ 0.29 | |
Discontinued operations (in dollars per share) | 0 | 0.04 | |
Net income (loss) per unit attributable to limited partners, Basic (in dollars per share) | $ (0.09) | $ 0.33 | |
Weighted average limited partner units - basic (in shares) | 38,681,925 | 38,621,375 | |
Diluted: | |||
Continuing operations (in dollars per share) | $ (0.09) | $ 0.29 | |
Discontinued operations (in dollars per share) | 0 | 0.03 | |
Net income (loss) per unit attributable to limited partners, Diluted (in dollars per share) | $ (0.09) | $ 0.32 | |
Weighted average limited partner units - diluted (in shares) | 38,681,925 | 38,629,627 | |
[1] | Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation. | ||
[2] | Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation. |
CONSOLIDATED AND CONDENSED ST_3
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS - Related Party Transactions - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | |||
Revenues: | ||||
Revenues | $ 250,967 | $ 307,074 | [1] | |
Cost of products sold: (excluding depreciation and amortization) | ||||
Cost of products sold | 152,757 | 192,836 | [1] | |
Expenses: | ||||
Operating expenses | [2] | 56,656 | 56,934 | [1] |
Selling, general and administrative | [2] | 11,144 | 10,939 | [1] |
Terminalling and storage | ||||
Revenues: | ||||
Revenues | [2] | 23,104 | 24,047 | [1] |
Transportation | ||||
Revenues: | ||||
Revenues | [2] | 37,795 | 34,359 | [1] |
Product Sales | ||||
Revenues: | ||||
Revenues | [2] | 176,275 | 230,525 | [1] |
Sulfur services | ||||
Revenues: | ||||
Revenues | [2] | 28,734 | 34,900 | [1] |
Cost of products sold: (excluding depreciation and amortization) | ||||
Cost of products sold | [2] | 19,696 | 22,218 | [1] |
Terminalling and storage | ||||
Revenues: | ||||
Revenues | [2] | 31,067 | 36,463 | [1] |
Cost of products sold: (excluding depreciation and amortization) | ||||
Cost of products sold | [2] | 26,871 | 31,980 | [1] |
Related Party | ||||
Expenses: | ||||
Operating expenses | 22,536 | 23,088 | [3] | |
Selling, general and administrative | 8,535 | 7,926 | [3] | |
Related Party | Terminalling and storage | ||||
Revenues: | ||||
Revenues | 18,972 | 20,008 | [3] | |
Related Party | Transportation | ||||
Revenues: | ||||
Revenues | 5,643 | 6,693 | [3] | |
Related Party | Product Sales | ||||
Revenues: | ||||
Revenues | 421 | 624 | [3] | |
Related Party | Sulfur services | ||||
Cost of products sold: (excluding depreciation and amortization) | ||||
Cost of products sold | 2,574 | 2,848 | [3] | |
Related Party | Terminalling and storage | ||||
Cost of products sold: (excluding depreciation and amortization) | ||||
Cost of products sold | $ 5,909 | $ 5,579 | [3] | |
[1] | Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation. | |||
[2] | Related Party Transactions Included Above Three Months Ended March 31, 2019 2018 1 Revenues:* Terminalling and storage $ 18,972 $ 20,008 Transportation 5,643 6,693 Product Sales 421 624 Costs and expenses:* Cost of products sold: (excluding depreciation and amortization) Sulfur services 2,574 2,848 Terminalling and storage 5,909 5,579 Expenses: Operating expenses 22,536 23,088 Selling, general and administrative 8,535 7,926 | |||
[3] | Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation. |
CONSOLIDATED AND CONDENSED ST_4
CONSOLIDATED AND CONDENSED STATEMENTS OF CAPITAL - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||
Beginning balance | $ 288,432 | [1] | $ 322,481 | ||
Net income (loss) | (3,656) | 15,036 | [2],[3] | ||
Issuance of common units, net | (101) | ||||
Issuance of restricted units | 0 | 0 | |||
Forfeiture of restricted units | 0 | 0 | |||
Cash distributions | (19,613) | (19,605) | |||
Deemed contribution to Martin Resource Management Corporation | (2,342) | ||||
Unit-based compensation | 352 | 132 | |||
Purchase of treasury units | (392) | (273) | |||
Excess purchase price over carrying value of acquired assets | (102,393) | (26) | |||
Deferred taxes on acquired assets and liabilities | 24,781 | ||||
Contribution to parent | (23,720) | ||||
Ending balance | 163,791 | 315,302 | |||
Common Limited | |||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||
Beginning balance | $ 258,085 | $ 290,927 | |||
Beginning balance (in shares) | 39,032,237 | 38,444,612 | |||
Net income (loss) | $ (3,583) | $ 12,562 | |||
Issuance of common units, net | $ (101) | ||||
Issuance of restricted units (in shares) | 16,944 | 633,425 | |||
Forfeiture of restricted units (in shares) | (118,087) | (7,000) | |||
Cash distributions | $ (19,221) | $ (19,213) | |||
Unit-based compensation | $ 352 | $ 132 | |||
Purchase of treasury units (in shares) | (31,504) | (18,800) | |||
Purchase of treasury units | $ (392) | $ (273) | |||
Excess purchase price over carrying value of acquired assets | (102,393) | $ (26) | |||
Deferred taxes on acquired assets and liabilities | $ 24,781 | ||||
Ending balance (in shares) | 38,899,590 | 39,052,237 | |||
Ending balance | $ 157,629 | $ 284,008 | |||
General Partner Amount | |||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||
Beginning balance | 6,627 | 7,314 | |||
Net income (loss) | (73) | 256 | |||
Cash distributions | (392) | (392) | |||
Ending balance | 6,162 | 7,178 | |||
Parent Net Investment | |||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||
Beginning balance | 23,720 | 24,240 | [4] | ||
Net income (loss) | [4] | 2,218 | |||
Deemed contribution to Martin Resource Management Corporation | (2,342) | ||||
Contribution to parent | (23,720) | ||||
Ending balance | $ 0 | $ 24,116 | [4] | ||
[1] | Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation. | ||||
[2] | Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation. | ||||
[3] | Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation. | ||||
[4] | Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation. |
CONSOLIDATED AND CONDENSED ST_5
CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | [1] | |
Cash flows from operating activities: | |||
Net income (loss) | $ (3,656) | $ 15,036 | [2] |
Less: Income from discontinued operations, net of income taxes | 0 | (1,532) | [2] |
Net income (loss) from continuing operations | (3,656) | 13,504 | [2] |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 18,982 | 19,990 | [2] |
Amortization of deferred debt issuance costs | 895 | 819 | |
Amortization of premium on notes payable | (77) | (77) | |
Deferred taxes | 369 | 0 | |
Loss (gain) on sale of property, plant and equipment | 720 | (8) | |
Derivative loss (gain) | 239 | (2,470) | |
Net cash received (paid) for commodity derivatives | (385) | 2,316 | |
Unit-based compensation | 352 | 132 | |
Change in current assets and liabilities, excluding effects of acquisitions and dispositions: | |||
Accounts and other receivables | 13,335 | 22,120 | |
Product exchange receivables | (15) | (46) | |
Inventories | 15,665 | 23,306 | |
Due from affiliates | (7,384) | (1,844) | |
Other current assets | (250) | (931) | |
Trade and other accounts payable | 10,933 | (2,711) | |
Product exchange payables | 997 | (1,551) | |
Due to affiliates | 1,162 | (2,181) | |
Income taxes payable | 544 | 149 | |
Other accrued liabilities | (11,038) | (13,234) | |
Change in other non-current assets and liabilities | (785) | 609 | |
Net cash provided by continuing operating activities | 40,603 | 57,892 | |
Net cash provided by discontinued operating activities | 0 | 1,437 | |
Net cash provided by operating activities | 40,603 | 59,329 | |
Cash flows from investing activities: | |||
Payments for property, plant and equipment | (6,973) | (16,557) | |
Acquisitions | (23,720) | 0 | |
Payments for plant turnaround costs | (3,827) | 0 | |
Proceeds from sale of property, plant and equipment | 574 | (32) | |
Net cash used in continuing investing activities | (33,946) | (16,589) | |
Net cash used in discontinuing investing activities | 0 | (1,739) | |
Net cash used in investing activities | (33,946) | (18,328) | |
Cash flows from financing activities: | |||
Payments of long-term debt and finance lease obligations | (89,255) | (101,261) | |
Proceeds from long-term debt | 205,000 | 84,000 | |
Proceeds from issuance of common units, net of issuance related costs | 0 | (101) | |
Purchase of treasury units | (392) | (273) | |
Deemed distribution to Martin Resource Management Corporation | 0 | (2,342) | |
Payment of debt issuance costs | (77) | (1,236) | |
Excess purchase price over carrying value of acquired assets | (102,393) | (26) | |
Cash distributions paid | (19,613) | (19,605) | |
Net cash used in financing activities | (6,730) | (40,844) | |
Net increase (decrease) in cash | (73) | 157 | |
Cash at beginning of period | 300 | 89 | |
Cash at end of period | 227 | 246 | |
Non-cash additions to property, plant and equipment | $ 2,001 | $ 1,905 | |
[1] | Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation. | ||
[2] | Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation. |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Nature of Operations and Basis of Presentation | NATURE OF OPERATIONS AND BASIS OF PRESENTATION 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: natural gas services, including liquids transportation and distribution services and natural gas storage; terminalling and storage services for petroleum products and by-products including the refining of naphthenic crude oil, blending and packaging of finished lubricants; sulfur and sulfur-based products processing, manufacturing, marketing and distribution; and 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 U.S. 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, 2018, filed with the Securities and Exchange Commission (the "SEC") on February 19, 2019. 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. Correction of Immaterial Error. The first quarter amounts for 2018 have been revised to reflect a reclassification in the presentation of certain expenses associated with the manufacturing and shipping of product related to a location in the Partnership's Terminalling and Storage operating segment. The reclassification resulted in an increase in operating expenses and a decrease in cost of products sold in the amount of $1,547 for the three months ended March 31, 2018. Acquisition of Martin Transport, Inc. On January 2, 2019, the Partnership acquired all of the issued and outstanding equity of Martin Transport, Inc. (“MTI”) from Martin Resource Management Corporation. MTI operates a fleet of tank trucks providing transportation of petroleum products, liquid petroleum gas, chemicals, sulfur and other products, as well as owns 23 terminals located throughout the Gulf Coast and Southeastern regions of the United States. The acquisition of MTI was considered a transfer of net assets between entities under common control. As a result, the acquisition of MTI was recorded at amounts based on the historical carrying value of these assets at January 1, 2019, and the Partnership is required to update its historical financial statements to include the activities of MTI as of the date of common control. See Note 3 for more information. The Partnership’s accompanying historical financial statements have been retrospectively updated to reflect the effects on financial position, cash flows and results of operations attributable to the activities of MTI as if the Partnership owned these assets for the periods presented. See Note 3 for separate results of MTI for the three months ended March 31, 2018. Net income attributable to MTI for periods prior to the Partnership’s acquisition of the assets is not allocated to the limited partners for purposes of calculating net income per limited partner unit. See Note 12. Divestiture of WTLPG Partnership Interest. On July 31, 2018, the Partnership completed the sale of its 20 percent non-operating interest in West Texas LPG Pipeline L.P. ("WTLPG") to ONEOK, Inc. (“ONEOK”). WTLPG owns an approximate 2,300 |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | NEW ACCOUNTING PRONOUNCEMENTS In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation: Improvements to Non-employee Share-Based Payment Accounting, which will expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from non-employees. The standard is effective for Partnership's financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Partnership adopted this standard effective January 1, 2019. The result of this adoption did not have a material impact on the Partnership's consolidated and condensed financial statements. In February 2016, the FASB issued ASU 2016-02, Leases , which introduces the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance. Lessor accounting under the new standard is substantially unchanged and the Partnership believes substantially all of our leases will continue to be classified as operating leases under the new standard. Additional qualitative and quantitative disclosures, including significant judgments made by management, will be required. The update is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those reporting periods, with early adoption permitted. The original guidance required application on a modified retrospective basis with the earliest period presented. In August 2018, the FASB issued ASU 2018-11, Targeted Improvements to Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 842 , which includes an option to not restate comparative periods in transition and elect to use the effective date of ASC 842, Leases, as the date of initial application of transition. The Partnership adopted this ASU on January 1, 2019, electing the transition option provided under ASU 2018-11. Consequently, financial information was not updated and the disclosures required under the new standard are not provided for dates and periods before January 1, 2019. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS Martin Transport Inc. Stock Purchase Agreement. On January 2, 2019, the Partnership acquired all of the issued and outstanding equity of MTI, a wholly-owned subsidiary of Martin Resource Management Corporation which operates a fleet of tank trucks providing transportation of petroleum products, liquid petroleum gas, chemicals, sulfur and other products, as well as owns 23 terminals located throughout the Gulf Coast and Southeastern regions of the United States for total consideration as follows: Purchase price 1 $ 135,000 Plus: Working Capital Adjustment 2,795 Less: Finance lease obligations assumed (11,682 ) Cash consideration paid $ 126,113 1 The stock purchase agreement also includes a $10,000 earn-out based on certain performance thresholds. The transaction closed on January 2, 2019 and was effective as of January 1, 2019 and was funded with borrowings under the Partnership's revolving credit facility. This acquisition is considered a transfer of net assets between entities under common control. The acquisition of MTI was recorded at the historical carrying value of the assets at the acquisition date, which were as follows: Accounts receivable, net $ 11,724 Inventories 1,138 Due from affiliates 1,042 Other current assets 897 Property, plant and equipment, net 25,383 Goodwill 489 Other noncurrent assets 362 Current installments of finance lease obligations (5,409 ) Accounts payable (2,564 ) Due to affiliates (482 ) Other accrued liabilities (2,588 ) Finance lease obligations, net of current installments (6,272 ) Historical carrying value of assets acquired $ 23,720 The excess purchase price over the historical carrying value of the assets at the acquisition date was $102,393 and was recorded as an adjustment to "Partners' capital". The separate results of operations related to MTI for the three months ended March 31, 2018 which were recast as part of the Partnership's consolidated and condensed statements of operations were as follows: Three Months Ended March 31, 2018 Transportation revenue $ 29,909 Operating expenses 25,536 Selling, general and administrative 1,340 Depreciation and amortization 780 Total costs and expenses 27,656 Other operating income, net 10 Operating income 2,263 Other income: Interest expense (45 ) Income before income taxes 2,218 Income taxes — Net income $ 2,218 |
Divestitures and Discontinued O
Divestitures and Discontinued Operations | 3 Months Ended |
Mar. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures and Discontinued Operations | DIVESTITURES AND DISCONTINUED OPERATIONS Discontinued Operations Divestiture of WTLPG Partnership Interest. On July 31, 2018, the Partnership completed the sale of its 20 percent non-operating interest in WTLPG to ONEOK. WTLPG owns an approximate 2,300 mile common-carrier pipeline system that primarily transports NGLs from New Mexico and Texas to Mont Belvieu, Texas for fractionation. A wholly-owned subsidiary of ONEOK, Inc. is the operator of the assets. In consideration for the sale of these assets, the Partnership received cash proceeds of $193,705 , after transaction fees and expenses. The proceeds from the sale were used to reduce outstanding borrowings under the Partnership's revolving credit facility. The Partnership has concluded the disposition represents a strategic shift and will have a major effect on its financial results going forward. As a result, the Partnership has presented the results of operations and cash flows relating to its equity method investment in WTLPG as discontinued operations for the three months ended March 31, 2018. The operating results, which are included in income from discontinued operations, were as follows: Three Months Ended March 31, 2018 Total costs and expenses and other, net, excluding depreciation and amortization 1 $ (63 ) Equity in earnings 1,595 Income from discontinued operations before income taxes 1,532 Income tax expense — Income from discontinued operations, net of income taxes $ 1,532 1 These expenses represent direct operating expenses as a result of the Partnership's ownership interest in WTLPG. Long-Lived Assets Held for Sale At March 31, 2019 and December 31, 2018, certain terminalling and storage and marine transportation assets met the criteria to be classified as held for sale in accordance with ASC 360-10 and are presented at the lower of the assets' carrying amount or fair value less cost to sell by segment in current assets as follows: March 31, 2019 December 31, 2018 Terminalling and storage $ 3,552 $ 3,552 Transportation 1,950 2,100 Assets held for sale $ 5,502 $ 5,652 |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE The following table disaggregates our revenue by major source: Three Months Ended March 31, 2019 2018 Terminalling and storage segment Lubricant product sales $ 31,067 $ 36,463 Throughput and storage 23,104 24,047 $ 54,171 $ 60,510 Natural gas services segment Natural gas liquids product sales $ 116,474 $ 159,162 Natural gas storage 10,934 15,356 $ 127,408 $ 174,518 Sulfur service segment Sulfur product sales $ 9,952 $ 11,837 Fertilizer product sales 18,782 23,063 Sulfur services 2,859 2,787 $ 31,593 $ 37,687 Transportation segment Land transportation $ 24,119 $ 22,905 Inland transportation 12,477 9,692 Offshore transportation 1,199 1,762 $ 37,795 $ 34,359 Revenue is measured based on a consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties where the Partnership is acting as an agent. The Partnership recognizes revenue when the Partnership satisfies a performance obligation, which typically occurs when the Partnership transfers control over a product to a customer or as the Partnership delivers a service. The following is a description of the principal activities - separated by reportable segments - from which the Partnership generates revenue. Terminalling and Storage Segment Revenue is recognized for storage contracts based on the contracted monthly tank fixed fee. For throughput contracts, revenue is recognized based on the volume moved through the Partnership’s terminals at the contracted rate. For the Partnership’s tolling agreement, revenue is recognized based on the contracted monthly reservation fee and throughput volumes moved through the facility. When lubricants and drilling fluids are sold by truck or rail, revenue is recognized when title is transfered, which is either upon delivering product to the customer or when the product leaves the Partnership's facility, depending on the specific terms of the contract. Delivery of product is invoiced as the transaction occurs and is generally paid within a month. Natural Gas Services Segment Natural Gas Liquids ("NGL") distribution revenue is recognized when product is delivered by truck, rail, or pipeline to the Partnership's NGL customers. Revenue is recognized on title transfer of the product to the customer. Delivery of product is invoiced as the transaction occurs and are generally paid within a month. Natural gas storage revenue is recognized when the service is provided to the customer. The performance of the service is invoiced as the transaction occurs and is generally paid within a month. Sulfur Services Segment Revenue from sulfur product sales is recognized when the customer takes title to the product. Delivery of product is invoiced as the transaction occurs and are generally paid within a month. Revenue from sulfur services is recognized as services are performed during each monthly period. The performance of the service is invoiced as the transaction occurs and is generally paid within a month. Transportation Segment Revenue related to land transportation is recognized for line hauls based on a mileage rate. For contracted trips, revenue is recognized upon completion of the particular trip. The performance of the service is invoiced as the transaction occurs and is generally paid within a month. Revenue related to marine transportation is recognized for time charters based on a per day rate. For contracted trips, revenue is recognized upon completion of the particular trip. The performance of the service is invoiced as the transaction occurs and is generally paid within a month. The table includes estimated minimum revenue expected to be recognized in the future related to performance obligations that are unsatisfied at the end of the reporting period. The Partnership applies the practical expedient in ASC 606-10-50-14(a) and does not disclose information about remaining performance obligations that have original expected durations of one year or less. 2019 2020 2021 2022 2023 Thereafter Total Terminalling and storage Throughput and storage $ 37,676 $ 49,355 $ 46,642 $ 42,735 $ 42,854 $ 392,624 $ 611,886 Natural gas services Natural gas storage 28,593 32,119 26,276 24,615 10,107 — 121,710 Sulfur services Sulfur product sales 12,811 4,898 1,181 295 — — 19,185 Transportation Offshore transportation 4,675 — — — — — 4,675 Total $ 83,755 $ 86,372 $ 74,099 $ 67,645 $ 52,961 $ 392,624 $ 757,456 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Components of inventories at March 31, 2019 and December 31, 2018 were as follows: March 31, 2019 December 31, 2018 Natural gas liquids $ 14,750 $ 32,388 Sulfur 14,648 12,818 Fertilizer 13,425 14,208 Lubricants 23,752 22,887 Other 3,966 3,906 $ 70,541 $ 86,207 |
Investment in West Texas LPG Pi
Investment in West Texas LPG Pipeline L.P. | 3 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in West Texas LPG Pipeline L.P. | INVESTMENT IN WEST TEXAS LPG PIPELINE L.P. As discussed in Note 4, on July 31, 2018, the Partnership completed the sale of its 20% non-operating interest in WTLPG. Prior to the sale, the Partnership owned a 19.8% limited partnership and 0.2% general partnership interest in West Texas LPG Pipeline L.P. ("WTLPG"). A wholly-owned subsidiary of ONEOK, Inc. is the operator of the assets. WTLPG owns an approximate 2,300 mile common-carrier pipeline system that primarily transports NGLs from New Mexico and Texas to Mont Belvieu, Texas for fractionation. The Partnership recognized its 20% interest in WTLPG as "Investment in WTLPG" on its Consolidated and Condensed Balance Sheets. The Partnership accounted for its ownership interest in WTLPG under the equity method of accounting. As discussed in Note 4, the Partnership sold its 20% non-operating partnership interest to ONEOK on July 31, 2018. Selected financial information for WTLPG during the period of ownership is as follows: Three Months Ended March 31, 2018 Revenues Net Income WTLPG $ 23,041 $ 7,706 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | LONG-TERM DEBT At March 31, 2019 and December 31, 2018 , long-term debt consisted of the following: March 31, December 31, $664,444 Revolving credit facility at variable interest rate (5.49% 1 weighted average at March 31, 2019), due March 2020 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, net of unamortized debt issuance costs of $2,890 and $3,537, respectively 2,4 $ 401,110 $ 283,463 $400,000 Senior notes, 7.25% interest, net of unamortized debt issuance costs of $1,283 and $1,454, respectively, including unamortized premium of $573 and $650, respectively, issued $250,000 February 2013 and $150,000 April 2014, $26,200 repurchased during 2015, due February 2021, unsecured 2,3 373,090 372,996 Total 774,200 656,459 Less: current portion (401,110 ) — Total long-term debt, net of current portion $ 373,090 $ 656,459 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. All amounts outstanding at March 31, 2019 and December 31, 2018 were at LIBOR 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, 2019 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 Corporation (the "Omnibus Agreement"). The Partnership is permitted to make quarterly distributions so long as no event of default exists. 2 The Partnership is in compliance with all debt covenants as of March 31, 2019 and December 31, 2018 , respectively. 3 The 2021 indenture restricts the Partnership’s ability to sell assets; pay distributions or repurchase units or redeem or repurchase subordinated debt; make investments; incur or guarantee additional indebtedness or issue preferred units; and consolidate, merge or transfer all or substantially all of its assets. 4 On April 16, 2019, the Partnership amended its revolving credit facility to, among other things, reduce commitments from $664,444 to $500,000 and to adjust the permitted Leverage Ratio (as defined in the credit agreement) to 5.85 times for the fiscal quarters ended March 31, 2019 and June 30, 2019. As of March 31, 2019, the Partnership’s revolving credit facility was due within twelve months and has therefore been presented as a current liability on the Partnership’s March 31, 2019 consolidated and condensed balance sheets. The Partnership intends to extend the maturity of the credit facility and had previously determined to delay the extension until after finalization of the marketing and sales process related to the sale of its natural gas storage assets, which if consummated would allow the impact of the receipt of the proceeds to give effect to the amended commitment amount and the extended maturity date. The Partnership paid cash interest, net of capitalized interest, in the amount of $19,363 and $18,878 for the three months ended March 31, 2019 and 2018, respectively. Capitalized interest was $2 and $161 for the three months ended March 31, 2019 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | LEASES In February 2016, the FASB issued ASU 2016-02, Leases , which introduces the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance. In August 2018, the FASB issued ASU 2018-11, Targeted Improvements to ASC 842 , which includes an option to not restate comparative periods in transition and elect to use the effective date of ASC 842, Leases, as the date of initial application of transition. The Partnership elected the effective date transition method in ASC 842 and adopted the standard beginning January 1, 2019. The new standard provides a number of optional practical expedients in transition. The Partnership elected the "package of practical expedients", which permits the Partnership not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. The Partnership also elected the short-term lease recognition exemption, meaning the Partnership does not recognize ROU assets or lease liabilities for all leases that qualify. Lease agreements with lease and non-lease components are combined as a single lease component. Variable lease payments are generally expensed as incurred and include certain index-based changes in rent, certain non-lease components, such as maintenance and other services provided by the lessor, and other charges included in the lease. The adoption of this standard resulted in the recording of approximately $19,047 of additional assets and liabilities on its Consolidated Balance Sheet as of January 1, 2019. The Partnership also acquired certain operating leases in the MTI transaction that resulted in additional assets and liabilities being recorded at the transaction date in accordance with ASU 2016-02 in the amount of $6,505 . The Partnership has numerous operating leases primarily for terminal facilities and transportation and other equipment. The leases generally provide that all expenses related to the equipment are to be paid by the lessee. Our leases have remaining lease terms of 1 year to 18 years , some of which include options to extend the leases for up to 5 years , and some of which include options to terminate the leases within 1 year . The Partnership includes extension periods and excludes termination periods from its lease term if, at commencement, it is reasonably likely that the Partnership will exercise the option. The Partnership's future minimum lease obligations as of December 31, 2018 consisted of the following: Operating Leases Year 1 $ 13,126 Year 2 7,194 Year 3 4,262 Year 4 2,642 Year 5 1,749 Thereafter 7,823 $ 36,796 The components of lease expense for the three months ended March 31, 2019 were as follows: March 31, 2019 Operating lease cost $ 5,290 Finance lease cost: Amortization of right-of-use assets $ 622 Interest on lease liabilities 183 Total finance lease cost $ 805 Supplemental cash flow information for the three months ended March 31, 2019 related to leases was as follows: March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5,310 Operating cash flows from finance leases 183 Financing cash flows from finance leases 1,256 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 5,245 Finance leases — Supplemental balance sheet information related to leases was as follows: March 31, 2019 Operating Leases Operating lease right-of-use assets $ 28,109 Current portion of operating lease liabilities included in "Other accrued liabilities" $ 8,701 Operating lease liabilities 19,734 Total operating lease liabilities $ 28,435 Finance Leases Property, plant and equipment, at cost $ 14,058 Accumulated depreciation (1,888 ) Property, plant and equipment, net $ 12,170 Current portion finance lease obligations $ 5,540 Finance lease obligations 4,886 Total finance lease obligations $ 10,426 Weighted Average Remaining Lease Term (years) Operating leases 6.24 Finance leases 1.57 Weighted Average Discount Rate Operating leases 5.25 % Finance leases 6.85 % The Partnership’s future minimum lease obligations as of March 31, 2019 consist of the following: Operating Leases Finance Leases Year 1 $ 9,920 $ 6,067 Year 2 7,152 4,641 Year 3 4,655 223 Year 4 2,656 204 Year 5 1,594 — Thereafter 7,577 — Total $ 33,554 $ 11,135 Less amounts representing interest costs (5,119 ) (709 ) Total lease liability $ 28,435 $ 10,426 As of March 31, 2019, we have additional operating leases, primarily for transportation equipment, that have not yet commenced of $1.3 million . These operating leases will commence during the second quarter of 2019 with lease terms of 2 years . Rent expense for continuing operating leases for the three months ended March 31, 2018 was $6,366 . Lessor accounting under the new standard is substantially unchanged and all of the Partnership's leases will continue to be classified as operating leases under the new standard. The Partnership has non-cancelable revenue arrangements that are under the scope of ASC 842 whereby we have committed certain terminalling and storage assets in exchange for a minimum fee. Future minimum revenues the Partnership expects to receive under these non-cancelable arrangements as of March 31, 2019 , are as follows: 2019 - $12,303 ; 2020 - $13,345 ; 2021 - $10,576 ; 2022 - $10,576 ; 2023 - $10,576 ; subsequent years - $58,128 |
Leases | LEASES In February 2016, the FASB issued ASU 2016-02, Leases , which introduces the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance. In August 2018, the FASB issued ASU 2018-11, Targeted Improvements to ASC 842 , which includes an option to not restate comparative periods in transition and elect to use the effective date of ASC 842, Leases, as the date of initial application of transition. The Partnership elected the effective date transition method in ASC 842 and adopted the standard beginning January 1, 2019. The new standard provides a number of optional practical expedients in transition. The Partnership elected the "package of practical expedients", which permits the Partnership not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. The Partnership also elected the short-term lease recognition exemption, meaning the Partnership does not recognize ROU assets or lease liabilities for all leases that qualify. Lease agreements with lease and non-lease components are combined as a single lease component. Variable lease payments are generally expensed as incurred and include certain index-based changes in rent, certain non-lease components, such as maintenance and other services provided by the lessor, and other charges included in the lease. The adoption of this standard resulted in the recording of approximately $19,047 of additional assets and liabilities on its Consolidated Balance Sheet as of January 1, 2019. The Partnership also acquired certain operating leases in the MTI transaction that resulted in additional assets and liabilities being recorded at the transaction date in accordance with ASU 2016-02 in the amount of $6,505 . The Partnership has numerous operating leases primarily for terminal facilities and transportation and other equipment. The leases generally provide that all expenses related to the equipment are to be paid by the lessee. Our leases have remaining lease terms of 1 year to 18 years , some of which include options to extend the leases for up to 5 years , and some of which include options to terminate the leases within 1 year . The Partnership includes extension periods and excludes termination periods from its lease term if, at commencement, it is reasonably likely that the Partnership will exercise the option. The Partnership's future minimum lease obligations as of December 31, 2018 consisted of the following: Operating Leases Year 1 $ 13,126 Year 2 7,194 Year 3 4,262 Year 4 2,642 Year 5 1,749 Thereafter 7,823 $ 36,796 The components of lease expense for the three months ended March 31, 2019 were as follows: March 31, 2019 Operating lease cost $ 5,290 Finance lease cost: Amortization of right-of-use assets $ 622 Interest on lease liabilities 183 Total finance lease cost $ 805 Supplemental cash flow information for the three months ended March 31, 2019 related to leases was as follows: March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5,310 Operating cash flows from finance leases 183 Financing cash flows from finance leases 1,256 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 5,245 Finance leases — Supplemental balance sheet information related to leases was as follows: March 31, 2019 Operating Leases Operating lease right-of-use assets $ 28,109 Current portion of operating lease liabilities included in "Other accrued liabilities" $ 8,701 Operating lease liabilities 19,734 Total operating lease liabilities $ 28,435 Finance Leases Property, plant and equipment, at cost $ 14,058 Accumulated depreciation (1,888 ) Property, plant and equipment, net $ 12,170 Current portion finance lease obligations $ 5,540 Finance lease obligations 4,886 Total finance lease obligations $ 10,426 Weighted Average Remaining Lease Term (years) Operating leases 6.24 Finance leases 1.57 Weighted Average Discount Rate Operating leases 5.25 % Finance leases 6.85 % The Partnership’s future minimum lease obligations as of March 31, 2019 consist of the following: Operating Leases Finance Leases Year 1 $ 9,920 $ 6,067 Year 2 7,152 4,641 Year 3 4,655 223 Year 4 2,656 204 Year 5 1,594 — Thereafter 7,577 — Total $ 33,554 $ 11,135 Less amounts representing interest costs (5,119 ) (709 ) Total lease liability $ 28,435 $ 10,426 As of March 31, 2019, we have additional operating leases, primarily for transportation equipment, that have not yet commenced of $1.3 million . These operating leases will commence during the second quarter of 2019 with lease terms of 2 years . Rent expense for continuing operating leases for the three months ended March 31, 2018 was $6,366 . Lessor accounting under the new standard is substantially unchanged and all of the Partnership's leases will continue to be classified as operating leases under the new standard. The Partnership has non-cancelable revenue arrangements that are under the scope of ASC 842 whereby we have committed certain terminalling and storage assets in exchange for a minimum fee. Future minimum revenues the Partnership expects to receive under these non-cancelable arrangements as of March 31, 2019 , are as follows: 2019 - $12,303 ; 2020 - $13,345 ; 2021 - $10,576 ; 2022 - $10,576 ; 2023 - $10,576 ; subsequent years - $58,128 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 3 Months Ended |
Mar. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | SUPPLEMENTAL BALANCE SHEET INFORMATION Components of "Other assets, net" were as follows: March 31, 2019 December 31, 2018 Customer contracts and relationships, net $ 17,194 $ 18,222 Other intangible assets 1,213 1,310 Other 5,282 4,541 $ 23,689 $ 24,073 Accumulated amortization of intangible assets was $ 46,987 and $ 44,510 at March 31, 2019 and December 31, 2018 , respectively. Components of "Other accrued liabilities" were as follows: March 31, 2019 December 31, 2018 Accrued interest $ 4,239 $ 10,735 Asset retirement obligations — 2,721 Property and other taxes payable 3,492 6,173 Accrued payroll 3,208 3,110 Operating lease liabilities 8,701 — Other 2,510 2,063 $ 22,150 $ 24,802 The schedule below summarizes the changes in our asset retirement obligations: March 31, 2019 Beginning asset retirement obligations $ 12,429 Accretion expense 124 Liabilities settled (3,900 ) Ending asset retirement obligations 8,653 Current portion of asset retirement obligations 1 — Long-term portion of asset retirement obligations 2 $ 8,653 1 The current portion of asset retirement obligations is included in "Other accrued liabilities" on the Partnership's Consolidated and Condensed Balance Sheets. 2 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Partnership’s revenues and cost of products sold are materially impacted by changes in NGL prices. Additionally, the Partnership's results of operations are materially impacted by changes in 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. All derivatives and hedging instruments are non-hedge derivatives and are included on the balance sheet as an asset or a liability measured at fair value and changes in fair value are recognized as gains and losses in earnings of the periods in which they occur. (a) Commodity Derivative Instruments The Partnership from time to time has used derivatives to manage the risk of commodity price fluctuation. Commodity risk is the adverse effect on the value of a liability or future purchase that results from a change in commodity price. The Partnership has established a hedging policy and monitors and manages the commodity market risk associated with potential commodity risk exposure. 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 has entered into hedging transactions as of March 31, 2019 to protect a portion of its commodity price risk exposure. These hedging arrangements are in the form of swaps for NGLs. The Partnership has instruments totaling a gross notional quantity of 472,000 barrels settling during the period from April 1, 2019 through September 30, 2019. At December 31, 2018, the Partnership had instruments totaling a gross notional quantity of 55,000 barrels settling during the period from January 31, 2019 through February 28, 2019. These instruments settle against the applicable pricing source for each grade and location. (b) Interest Rate Derivative Instruments The Partnership is exposed to market risks associated with interest rates. Market risk is the adverse effect on the value of a financial instrument that results from a change in interest rates. We minimize this market risk by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken. 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 its fixed rate senior unsecured notes. At March 31, 2019 and 2018, the Partnership did not have any outstanding interest rate derivative instruments. For information regarding gains and losses on interest rate derivative instruments, see "Tabular Presentation of Gains and Losses on Derivative Instruments" below. (c) Tabular Presentation of Gains and Losses on Derivative Instruments The following table summarizes the fair value and classification of the Partnership’s derivative instruments in its Consolidated and Condensed Balance Sheets: Fair Values of Derivative Instruments in the Consolidated and Condensed Balance Sheets Derivative Assets Derivative Liabilities Fair Values Fair Values Balance Sheet Location March 31, 2019 December 31, 2018 Balance Sheet Location March 31, 2019 December 31, 2018 Derivatives not designated as hedging instruments: Current: Commodity contracts Fair value of derivatives $ 150 $ 4 Fair value of derivatives $ — $ — Total derivatives not designated as hedging instruments $ 150 $ 4 $ — $ — Effect of Derivative Instruments on the Consolidated and Condensed Statements of Operations For the Three Months Ended March 31, 2019 and 2018 Location of Gain (Loss) Recognized in Income on Derivatives Amount of Gain (Loss) Recognized in Income on Derivatives 2019 2018 Derivatives not designated as hedging instruments: Commodity contracts Cost of products sold $ (239 ) $ 2,470 Total effect of derivatives not designated as hedging instruments $ (239 ) $ 2,470 |
Partners' Capital
Partners' Capital | 3 Months Ended |
Mar. 31, 2019 | |
Partners' Capital Notes [Abstract] | |
Partners' Capital | PARTNERS' CAPITAL As of March 31, 2019 , Partners’ capital consisted of 38,899,590 common limited partner units, representing a 98% partnership interest, and a 2% general partner interest. Martin Resource Management Corporation, through subsidiaries, owns 6,114,532 of the Partnership's common limited partner units representing approximately 15.7% of the Partnership's outstanding common limited partner units. Martin Midstream GP LLC ("MMGP"), the Partnership's general partner, owns the 2% general partnership interest. Martin Resource Management Corporation controls the Partnership's general partner, by virtue of its 51% voting interest in MMGP Holdings, LLC ("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. Incentive Distribution Rights 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. The general partner was allocated no incentive distributions during the three months ended March 31, 2019 and 2018. The target distribution levels entitle the general partner to receive 2% of quarterly cash distributions from the minimum of $0.50 per unit 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. 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 income and 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 from continuing operations and net income from discontinued operations 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, 2019 2018 Continuing operations: Income (loss) from continuing operations $ (3,656 ) $ 13,504 Less pre-acquisition income allocated to the general partner — (2,218 ) Less general partner’s interest in net income (loss): Distributions payable on behalf of general partner interest 197 345 General partner interest in undistributed loss (270 ) (120 ) Less income (loss) allocable to unvested restricted units (2 ) 7 Limited partners’ interest in net income (loss) $ (3,581 ) $ 11,054 Three Months Ended March 31, 2019 2018 Discontinued operations: Income from discontinued operations $ — $ 1,532 Less general partner’s interest in net income (loss): Distributions payable on behalf of general partner interest — 47 General partner interest in undistributed loss — (16 ) Less income allocable to unvested restricted units — 1 Limited partners’ interest in net income $ — $ 1,500 The Partnership allocates the general partner's share of earnings between continuing and discontinued operations as a proportion of net income from continuing and discontinued operations to total net income. The following are the unit amounts used to compute the basic and diluted earnings per limited partner unit for the periods presented: Three Months Ended March 31, 2019 2018 Basic weighted average limited partner units outstanding 38,681,925 38,621,375 Dilutive effect of restricted units issued — 8,252 Total weighted average limited partner diluted units outstanding 38,681,925 38,629,627 |
Unit Based Awards
Unit Based Awards | 3 Months Ended |
Mar. 31, 2019 | |
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 both employees and non-employees in its consolidated and condensed financial statements in accordance with certain provisions of ASC 718. 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, 2019 2018 Employees $ 329 $ 96 Non-employee directors 23 36 Total unit-based compensation expense $ 352 $ 132 All of the Partnership's outstanding awards at March 31, 2019 met the criteria to be treated under equity classification. 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. On May 26, 2017, the unitholders of the Partnership approved the Martin Midstream Partners L.P. 2017 Restricted Unit Plan (the "2017 LTIP"). The plan currently permits the grant of awards covering an aggregate of 3,000,000 common units, all of which can be awarded in the form of restricted units. The plan is administered by the compensation committee of the general partner’s board of directors (the "Compensation Committee"). A restricted unit is a unit that is granted to grantees with certain vesting restrictions, which may be time-based and/or performance-based. Once these restrictions lapse, the grantee is entitled to full ownership of the unit without restrictions. The Compensation Committee may determine to make grants under the plan containing such terms as the Compensation Committee shall determine under the plan. With respect to time-based restricted units ("TBRU's"), the Compensation Committee will determine the time period over which restricted units granted to employees and directors will vest. The Compensation Committee may also award a percentage of restricted units with vesting requirements based upon the achievement of specified pre-established performance targets ("Performance Based Restricted Units" or "PBRU's"). The performance targets may include, but are not limited to, the following: revenue and income measures, cash flow measures, net income before interest expense and income tax expense ("EBIT"), net income before interest expense, income tax expense, and depreciation and amortization ("EBITDA"), distribution coverage metrics, expense measures, liquidity measures, market measures, corporate sustainability metrics, and other measures related to acquisitions, dispositions, operational objectives and succession planning objectives. PBRU's are earned only upon our achievement of an objective performance measure for the performance period. PBRU's which vest are payable in common units. Unvested units granted under the 2017 LTIP may or may not participate in cash distributions depending on the terms of each individual award agreement. The restricted units issued to directors generally vest in equal annual installments over a four -year period. Restricted units issued to employees generally vest in equal annual installments over three years of service. On February 11, 2019, the Partnership issued 5,648 TBRU's to each of the Partnership's three independent directors under the 2017 LTIP. These restricted common units vest in equal installments of 1,412 units on January 24, 2020, 2021, 2022, and 2023. On March 1, 2018, the Partnership issued 301,550 TBRU's and 317,925 PBRU's to certain employees of Martin Resource Management Corporation. The TBRU's vest in equal installments over a three-year service period. The PBRU's will vest at the conclusion of a three-year performance period based on certain performance targets. In addition, the PBRU's awarded on March 1, 2018 that are achieved will only vest if the grantee is employed by Martin Resource Management Corporation on March 31, 2021. As of March 31, 2019, the Partnership is unable to ascertain if certain performance conditions will be achieved and, as such, has not recognized compensation expense for the vesting of the units. The Partnership will record compensation expense for the vested portion of the units once the achievement of the performance condition is deemed probable. 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, 2019 is provided below: Number of Units Weighted Average Grant-Date Fair Value Per Unit Non-vested, beginning of period 624,125 $ 13.78 Granted (TBRU) 16,944 $ 12.45 Vested (107,762 ) $ 13.82 Forfeited (118,087 ) $ 13.90 Non-Vested, end of period 415,220 $ 13.77 Aggregate intrinsic value, end of period $ 5,169 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 months ended March 31, 2019 and 2018 is provided below: Three Months Ended March 31, 2019 2018 Aggregate intrinsic value of units vested $ 1,351 $ 1,188 Fair value of units vested 1,551 2,232 As of March 31, 2019 , there was $2,990 of unrecognized compensation cost related to non-vested restricted units. That cost is expected to be recognized over a weighted-average period of 2.25 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS As of March 31, 2019 , Martin Resource Management Corporation owns 6,114,532 of the Partnership’s common units representing approximately 15.7% of the Partnership’s outstanding limited partner units. Martin Resource Management Corporation 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% 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 Corporation’s ownership as of March 31, 2019 , of approximately 15.7% of the Partnership’s outstanding limited partner units, effectively gives Martin Resource Management Corporation 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 Corporation 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 Corporation and the Partnership’s use of certain Martin Resource Management Corporation 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 Corporation. Non-Competition Provisions . Martin Resource Management Corporation 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 land and marine transportation of petroleum products, by-products, and chemicals; • 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 Corporation, including the following: ◦ distributing fuel oil, marine fuel and other liquids; ◦ providing marine bunkering and other shore-based marine services in Texas, Louisiana, Mississippi, Alabama, and Florida; ◦ 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; ◦ providing crude oil marketing and transportation from the well head to the end market; ◦ operating an environmental consulting company; ◦ operating an engineering services company; ◦ supplying employees and services for the operation of the Partnership's business; and ◦ operating, solely for the Partnership's account, the asphalt facilities in Omaha, Nebraska, Port Neches, Texas, Hondo, Texas, and South Houston, Texas. • any business that Martin Resource Management Corporation acquires or constructs that has a fair market value of less than $5,000 ; • any business that Martin Resource Management Corporation 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 Corporation 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 Corporation 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 Corporation 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 Corporation for direct expenses. In addition to the direct expenses, under the Omnibus Agreement, the Partnership is required to reimburse Martin Resource Management Corporation for indirect general and administrative and corporate overhead expenses. Effective January 1, 2019, through December 31, 2019, the Conflicts Committee approved an annual reimbursement amount for indirect expenses of $16,657 . The Partnership reimbursed Martin Resource Management Corporation for $4,164 and $4,104 of indirect expenses for the three months ended March 31, 2019 and 2018 , 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 Corporation 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 Corporation retained businesses. The provisions of the Omnibus Agreement regarding Martin Resource Management Corporation’s services will terminate if Martin Resource Management Corporation 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 Corporation 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 Corporation that requires aggregate annual payments in excess of the 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 Corporation 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 Corporation. 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 Corporation. 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 Corporation for general and administrative services performed on its behalf, will terminate if the Partnership is no longer an affiliate of Martin Resource Management Corporation. Master Transportation Services Agreement Master Transportation Agreement. MTI, a wholly owned subsidiary of the Partnership, is a party to a master transportation services agreement effective January 1, 2019, with certain wholly owned subsidiaries of Martin Resource Management Corporation. Under the agreement, MTI agreed to transport Martin Resource Management Corporation's petroleum products and by-products. Term and Pricing. The agreement will continue unless either party terminates the agreement by giving at least 30 days' written notice to the other party. These rates are subject to any adjustments which are mutually agreed upon or in accordance with a price index. Additionally, 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. MTI has agreed to indemnify Martin Resource Management Corporation against all claims arising out of the negligence or willful misconduct of MTI and its officers, employees, agents, representatives and subcontractors. Martin Resource Management Corporation has agreed to indemnify MTI against all claims arising out of the negligence or willful misconduct of Martin Resource Management Corporation and its officers, employees, agents, representatives and subcontractors. In the event a claim is the result of the joint negligence or misconduct of MTI and Martin Resource Management Corporation, 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, as amended, under which the Partnership provides marine transportation services to Martin Resource Management Corporation 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 Corporation are based on applicable market rates. Marine Fuel. The Partnership is a party to an agreement with Martin Resource Management Corporation dated November 1, 2002, under which Martin Resource Management Corporation 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 Corporation. Terminal Services Agreements Diesel Fuel Terminal Services Agreement. Effective January 1, 2016, the Partnership entered into a second amended and restated terminalling services agreement under which the Partnership provides terminal services to Martin Resource Management Corporation for marine fuel distribution. At such time, the per gallon throughput fee the Partnership charged under this agreement was increased when compared to the previous agreement and may be adjusted annually based on a price index. This agreement was further amended on January 1, 2017 and October 1, 2017 to modify its minimum throughput requirements and throughput fees. This agreement, as amended, expired September 30, 2018 and continued thereafter on a month to month basis until terminated by either party by giving 60 days’ written notice. 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. Other Agreements Cross Tolling Agreement. The Partnership is a party to an amended and restated tolling agreement with Cross Oil Refining and Marketing, Inc. ("Cross") dated October 28, 2014, under which the Partnership processes crude oil into finished products, including naphthenic lubricants, distillates, asphalt and other intermediate cuts for Cross. The tolling agreement 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, on the third, sixth and ninth anniversaries of the agreement, the parties can negotiate an upward or downward adjustment in the fees subject to their mutual agreement. Sulfuric Acid Sales Agency Agreement . The Partnership was previously a party to a third amended and restated sulfuric acid sales agency agreement dated August 2, 2017 but effective October 1, 2017, under which a successor in interest to the agreement from Martin Resource Management Corporation, Saconix LLC ("Saconix"), a limited liability company in which Martin Resource Management Corporation held a minority equity interest, purchased and marketed the sulfuric acid produced by the Partnership’s sulfuric acid production plant at Plainview, Texas, that was not consumed by the Partnership’s internal operations. This agreement, as amended, was to remain in place until September 30, 2020 and automatically renew year to year thereafter until either party provided 90 days’ written notice of termination prior to the expiration of the then existing term. Under this agreement, the Partnership sold all of its excess sulfuric acid to Saconix, who then marketed and sold such acid to third-parties. The Partnership shared in the profit of such sales. Effective May 31, 2018, Martin Resource Management Corporation no longer holds an equity interest in Saconix. These transactions are reported below as related party transactions during the period the equity interest was held. Transactions subsequent to Martin Resource Management Corporation's disposition of the equity interest will be reported as third party transactions. Other Miscellaneous Agreements. From time to time the Partnership enters into other miscellaneous agreements with Martin Resource Management Corporation 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 captions of the consolidated and condensed financial statements 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, 2019 2018 Revenues: Terminalling and storage $ 18,972 $ 20,008 Transportation 5,643 6,693 Product sales: Sulfur services 7 386 Terminalling and storage 414 238 421 624 $ 25,036 $ 27,325 The impact of related party cost of products sold is reflected in the consolidated and condensed financial statements as follows: Three Months Ended March 31, 2019 2018 Cost of products sold: Sulfur services $ 2,574 $ 2,848 Terminalling and storage 5,909 5,579 $ 8,483 $ 8,427 The impact of related party operating expenses is reflected in the consolidated and condensed financial statements as follows: Three Months Ended March 31, 2019 2018 Operating expenses: Transportation $ 14,980 $ 15,047 Natural gas services 2,025 2,199 Sulfur services 924 1,339 Terminalling and storage 4,607 4,503 $ 22,536 $ 23,088 The impact of related party selling, general and administrative expenses is reflected in the consolidated and condensed financial statements as follows: Three Months Ended March 31, 2019 2018 Selling, general and administrative: Transportation $ 1,728 $ 213 Natural gas services 1,189 2,254 Sulfur services 716 659 Terminalling and storage 717 681 Indirect, including overhead allocation 4,185 4,119 $ 8,535 $ 7,926 |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Business Segments | BUSINESS SEGMENTS The Partnership has four reportable segments: natural gas services, terminalling and storage, sulfur services and 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, 2018 , filed with the SEC on February 19, 2019. 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, 2019 Operating Revenues Intersegment Revenues Eliminations Operating Revenues after Eliminations Depreciation and Amortization Operating Income (Loss) after Eliminations Capital Expenditures and Plant Turnaround Costs Terminalling and storage $ 55,892 $ (1,721 ) $ 54,171 $ 7,837 $ 4,815 $ 5,345 Natural gas services 127,408 — 127,408 4,707 7,960 623 Sulfur services 31,593 — 31,593 2,868 6,380 2,206 Transportation 45,186 (7,391 ) 37,795 3,570 (3,880 ) 2,461 Indirect selling, general and administrative — — — — (4,567 ) — Total $ 260,079 $ (9,112 ) $ 250,967 $ 18,982 $ 10,708 $ 10,635 Three Months Ended March 31, 2018 Operating Revenues Intersegment Revenues Eliminations Operating Revenues after Eliminations Depreciation and Amortization Operating Income (Loss) after Eliminations Capital Expenditures and Plant Turnaround Costs Terminalling and storage $ 61,983 $ (1,473 ) $ 60,510 $ 10,159 $ 3,696 $ 2,121 Natural gas services 174,519 (1 ) 174,518 5,301 21,791 1,009 Sulfur services 37,687 — 37,687 2,064 10,166 1,548 Transportation 41,937 (7,578 ) 34,359 2,466 (5,039 ) 9,683 Indirect selling, general and administrative — — — — (4,231 ) — Total $ 316,126 $ (9,052 ) $ 307,074 $ 19,990 $ 26,383 $ 14,361 The Partnership's assets by reportable segment as of March 31, 2019 and December 31, 2018 , are as follows: March 31, 2019 December 31, 2018 Total assets: Terminalling and storage $ 314,925 $ 298,784 Natural gas services 476,106 512,817 Sulfur services 123,213 115,498 Transportation 180,824 146,529 Total assets $ 1,095,068 $ 1,073,628 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITTMENTS AND CONTINGENCIES 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. On December 31, 2015, the Partnership received a demand from a customer in its lubricants packaging business for defense and indemnity in connection with lawsuits filed against it in various United States District Courts, which generally allege that the customer engaged in unlawful and deceptive business practices in connection with its marketing and advertising of its private label motor oil. The Partnership disputes that it has any obligation to defend or indemnify the customer for its conduct. Accordingly, on January 7, 2016, the Partnership filed a Complaint for Declaratory Judgment in the Chancery Court of Davidson County, Tennessee requesting a judicial determination that the Partnership does not owe the customer the demanded defense and indemnity obligations. The lawsuits against the customer have been transferred to the United States |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The Partnership uses a valuation framework based upon inputs that market participants use in pricing certain assets and liabilities. These inputs are classified into two categories: observable inputs and unobservable inputs. Observable inputs represent market data obtained from independent sources. Unobservable inputs represent the Partnership's own market assumptions. Unobservable inputs are used only if observable inputs are unavailable or not reasonably available without undue cost and effort. The two types of inputs are further prioritized into the following hierarchy: 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 reflect the entity's own assumptions and are not corroborated by market data. Assets and liabilities measured at fair value on a recurring basis are summarized below: Level 2 March 31, 2019 December 31, 2018 Commodity derivative contracts, net $ 150 $ 4 The Partnership is required to disclose estimated fair values for its financial instruments. Fair value estimates are set forth below for these 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 below. There is negligible credit risk associated with these instruments. • Current and noncurrent portion of long-term debt: 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 Partnership has not had any indicators which represent a change in the market spread associated with its variable interest rate debt. The estimated fair value of the senior unsecured notes is considered Level 1, as the fair value is based on quoted market prices in active markets. March 31, 2019 December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value 2021 Senior unsecured notes $ 373,090 $ 369,560 $ 372,996 $ 360,138 |
Condensed Consolidated Financia
Condensed Consolidated Financial Information | 3 Months Ended |
Mar. 31, 2019 | |
Consolidating Financial Statements [Abstract] | |
Condensed Consolidated Financial Information | CONDENSED CONSOLIDATED FINANCIAL INFORMATION The Partnership's operations are conducted by its operating subsidiaries as it has no independent assets or operations. Martin Operating Partnership L.P. (the "Operating Partnership"), the Partnership’s wholly-owned subsidiary, and the Partnership's other operating subsidiaries have issued in the past, and may issue in the future, unconditional guarantees of senior or subordinated debt securities of the Partnership. The guarantees that have been issued are full, irrevocable and unconditional and joint and several. 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. Substantially all of the Partnership's |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Three Months Ended March 31, 2019 2018 Provision for income taxes $ 696 $ 149 The operations of a partnership are generally not subject to income taxes, except for Texas margin tax, because its income is taxed directly to its partners. MTI is subject to income taxes due to its corporate structure. Total income tax expense (benefit) of $448 and $0 , related to the operation of the subsidiary, for the three months ended March 31, 2019 and 2018, respectively, resulted in an effective income tax rate of 24.79% and 0% , respectively. The increase in the effective income tax rate and provision for income taxes during the three months ended March 31, 2019, compared to March 31, 2018, is primarily due to a change in MTI’s tax status from a non-taxable Qualified Subchapter S subsidiary (“QSub”) to a taxable C Corporation upon acquisition. Prior to the acquisition, MTI was a QSub of Martin Resource Management Corporation, a qualifying S Corporation. A QSub is not treated as a separate corporation for federal income tax purposes as it is deemed liquidated into its S Corporation parent. S Corporations are generally not subject to income taxes because income and losses flow through to shareholders and are reported on their individual returns. Subsequent to the acquisition, MTI will file stand-alone C Corporation returns. A current federal income tax expense (benefit) of $297 and $0 and a current state income tax expense (benefit) of $(218) and $0 , related to the operation of the subsidiary were recorded for the three months ended March 31, 2019 and 2018, respectively. In connection with the MTI acquisition, the Partnership also established deferred income taxes of $24,781 associated with book and tax basis differences of the acquired assets and liabilities. The basis differences are primarily related to property, plant and equipment and deductible tax goodwill. Equity of MTI was adjusted for the deferred tax consequences of the basis differences caused by the transaction between entities under common control. With respect to MTI, income taxes are accounted for under the asset and liability method pursuant to the provisions of ASC 740 related to income taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A deferred tax expense related to the MTI temporary differences of $369 and $0 was recorded for the three months ended March 31, 2019 and 2018, respectively. A deferred tax asset of $24,412 and $0 , related to the cumulative book and tax temporary differences, existed at March 31, 2019 and December 31, 2018, respectively. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Quarterly Distribution. On April 24, 2019, the Partnership declared a quarterly cash distribution of $0.25 per common unit for the first quarter of 2019, or $1.00 per common unit on an annualized basis, which will be paid on May 15, 2019 to unitholders of record as of May 8, 2019. Credit Facility Amendment. On April 16, 2019, the Partnership amended it's revolving credit facility to, among other things, reduce commitments from $664,444 to $500,000 and to adjust the permitted Leverage Ratio (as defined in the credit agreement) to 5.85 |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | NEW ACCOUNTING PRONOUNCEMENTS In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation: Improvements to Non-employee Share-Based Payment Accounting, which will expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from non-employees. The standard is effective for Partnership's financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Partnership adopted this standard effective January 1, 2019. The result of this adoption did not have a material impact on the Partnership's consolidated and condensed financial statements. In February 2016, the FASB issued ASU 2016-02, Leases , which introduces the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance. Lessor accounting under the new standard is substantially unchanged and the Partnership believes substantially all of our leases will continue to be classified as operating leases under the new standard. Additional qualitative and quantitative disclosures, including significant judgments made by management, will be required. The update is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those reporting periods, with early adoption permitted. The original guidance required application on a modified retrospective basis with the earliest period presented. In August 2018, the FASB issued ASU 2018-11, Targeted Improvements to Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 842 , which includes an option to not restate comparative periods in transition and elect to use the effective date of ASC 842, Leases, as the date of initial application of transition. The Partnership adopted this ASU on January 1, 2019, electing the transition option provided under ASU 2018-11. Consequently, financial information was not updated and the disclosures required under the new standard are not provided for dates and periods before January 1, 2019. |
Fair Value Measurements | The Partnership uses a valuation framework based upon inputs that market participants use in pricing certain assets and liabilities. These inputs are classified into two categories: observable inputs and unobservable inputs. Observable inputs represent market data obtained from independent sources. Unobservable inputs represent the Partnership's own market assumptions. Unobservable inputs are used only if observable inputs are unavailable or not reasonably available without undue cost and effort. The two types of inputs are further prioritized into the following hierarchy: 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. |
Fair Value of Financial Instruments | The Partnership is required to disclose estimated fair values for its financial instruments. Fair value estimates are set forth below for these 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 below. There is negligible credit risk associated with these instruments. • |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | On January 2, 2019, the Partnership acquired all of the issued and outstanding equity of MTI, a wholly-owned subsidiary of Martin Resource Management Corporation which operates a fleet of tank trucks providing transportation of petroleum products, liquid petroleum gas, chemicals, sulfur and other products, as well as owns 23 terminals located throughout the Gulf Coast and Southeastern regions of the United States for total consideration as follows: Purchase price 1 $ 135,000 Plus: Working Capital Adjustment 2,795 Less: Finance lease obligations assumed (11,682 ) Cash consideration paid $ 126,113 Accounts receivable, net $ 11,724 Inventories 1,138 Due from affiliates 1,042 Other current assets 897 Property, plant and equipment, net 25,383 Goodwill 489 Other noncurrent assets 362 Current installments of finance lease obligations (5,409 ) Accounts payable (2,564 ) Due to affiliates (482 ) Other accrued liabilities (2,588 ) Finance lease obligations, net of current installments (6,272 ) Historical carrying value of assets acquired $ 23,720 |
Condensed Income Statement | The separate results of operations related to MTI for the three months ended March 31, 2018 which were recast as part of the Partnership's consolidated and condensed statements of operations were as follows: Three Months Ended March 31, 2018 Transportation revenue $ 29,909 Operating expenses 25,536 Selling, general and administrative 1,340 Depreciation and amortization 780 Total costs and expenses 27,656 Other operating income, net 10 Operating income 2,263 Other income: Interest expense (45 ) Income before income taxes 2,218 Income taxes — Net income $ 2,218 |
Divestitures and Discontinued_2
Divestitures and Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The operating results, which are included in income from discontinued operations, were as follows: Three Months Ended March 31, 2018 Total costs and expenses and other, net, excluding depreciation and amortization 1 $ (63 ) Equity in earnings 1,595 Income from discontinued operations before income taxes 1,532 Income tax expense — Income from discontinued operations, net of income taxes $ 1,532 1 |
Disclosure of Long Lived Assets Held-for-sale | At March 31, 2019 and December 31, 2018, certain terminalling and storage and marine transportation assets met the criteria to be classified as held for sale in accordance with ASC 360-10 and are presented at the lower of the assets' carrying amount or fair value less cost to sell by segment in current assets as follows: March 31, 2019 December 31, 2018 Terminalling and storage $ 3,552 $ 3,552 Transportation 1,950 2,100 Assets held for sale $ 5,502 $ 5,652 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table disaggregates our revenue by major source: Three Months Ended March 31, 2019 2018 Terminalling and storage segment Lubricant product sales $ 31,067 $ 36,463 Throughput and storage 23,104 24,047 $ 54,171 $ 60,510 Natural gas services segment Natural gas liquids product sales $ 116,474 $ 159,162 Natural gas storage 10,934 15,356 $ 127,408 $ 174,518 Sulfur service segment Sulfur product sales $ 9,952 $ 11,837 Fertilizer product sales 18,782 23,063 Sulfur services 2,859 2,787 $ 31,593 $ 37,687 Transportation segment Land transportation $ 24,119 $ 22,905 Inland transportation 12,477 9,692 Offshore transportation 1,199 1,762 $ 37,795 $ 34,359 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | The table includes estimated minimum revenue expected to be recognized in the future related to performance obligations that are unsatisfied at the end of the reporting period. The Partnership applies the practical expedient in ASC 606-10-50-14(a) and does not disclose information about remaining performance obligations that have original expected durations of one year or less. 2019 2020 2021 2022 2023 Thereafter Total Terminalling and storage Throughput and storage $ 37,676 $ 49,355 $ 46,642 $ 42,735 $ 42,854 $ 392,624 $ 611,886 Natural gas services Natural gas storage 28,593 32,119 26,276 24,615 10,107 — 121,710 Sulfur services Sulfur product sales 12,811 4,898 1,181 295 — — 19,185 Transportation Offshore transportation 4,675 — — — — — 4,675 Total $ 83,755 $ 86,372 $ 74,099 $ 67,645 $ 52,961 $ 392,624 $ 757,456 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | Components of inventories at March 31, 2019 and December 31, 2018 were as follows: March 31, 2019 December 31, 2018 Natural gas liquids $ 14,750 $ 32,388 Sulfur 14,648 12,818 Fertilizer 13,425 14,208 Lubricants 23,752 22,887 Other 3,966 3,906 $ 70,541 $ 86,207 |
Investment in West Texas LPG _2
Investment in West Texas LPG Pipeline L.P. (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Select Financial Information for Significant Unconsolidated Equity Method Investees | Selected financial information for WTLPG during the period of ownership is as follows: Three Months Ended March 31, 2018 Revenues Net Income WTLPG $ 23,041 $ 7,706 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | At March 31, 2019 and December 31, 2018 , long-term debt consisted of the following: March 31, December 31, $664,444 Revolving credit facility at variable interest rate (5.49% 1 weighted average at March 31, 2019), due March 2020 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, net of unamortized debt issuance costs of $2,890 and $3,537, respectively 2,4 $ 401,110 $ 283,463 $400,000 Senior notes, 7.25% interest, net of unamortized debt issuance costs of $1,283 and $1,454, respectively, including unamortized premium of $573 and $650, respectively, issued $250,000 February 2013 and $150,000 April 2014, $26,200 repurchased during 2015, due February 2021, unsecured 2,3 373,090 372,996 Total 774,200 656,459 Less: current portion (401,110 ) — Total long-term debt, net of current portion $ 373,090 $ 656,459 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. All amounts outstanding at March 31, 2019 and December 31, 2018 were at LIBOR 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, 2019 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 Corporation (the "Omnibus Agreement"). The Partnership is permitted to make quarterly distributions so long as no event of default exists. 2 The Partnership is in compliance with all debt covenants as of March 31, 2019 and December 31, 2018 , respectively. 3 The 2021 indenture restricts the Partnership’s ability to sell assets; pay distributions or repurchase units or redeem or repurchase subordinated debt; make investments; incur or guarantee additional indebtedness or issue preferred units; and consolidate, merge or transfer all or substantially all of its assets. 4 On April 16, 2019, the Partnership amended its revolving credit facility to, among other things, reduce commitments from $664,444 to $500,000 and to adjust the permitted Leverage Ratio (as defined in the credit agreement) to 5.85 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Obligations, Operating Leases | The Partnership’s future minimum lease obligations as of March 31, 2019 consist of the following: Operating Leases Finance Leases Year 1 $ 9,920 $ 6,067 Year 2 7,152 4,641 Year 3 4,655 223 Year 4 2,656 204 Year 5 1,594 — Thereafter 7,577 — Total $ 33,554 $ 11,135 Less amounts representing interest costs (5,119 ) (709 ) Total lease liability $ 28,435 $ 10,426 Operating Leases Year 1 $ 13,126 Year 2 7,194 Year 3 4,262 Year 4 2,642 Year 5 1,749 Thereafter 7,823 $ 36,796 |
Components of Lease Expense | Supplemental cash flow information for the three months ended March 31, 2019 related to leases was as follows: March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5,310 Operating cash flows from finance leases 183 Financing cash flows from finance leases 1,256 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 5,245 Finance leases — March 31, 2019 Operating lease cost $ 5,290 Finance lease cost: Amortization of right-of-use assets $ 622 Interest on lease liabilities 183 Total finance lease cost $ 805 |
Schedule of Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows: March 31, 2019 Operating Leases Operating lease right-of-use assets $ 28,109 Current portion of operating lease liabilities included in "Other accrued liabilities" $ 8,701 Operating lease liabilities 19,734 Total operating lease liabilities $ 28,435 Finance Leases Property, plant and equipment, at cost $ 14,058 Accumulated depreciation (1,888 ) Property, plant and equipment, net $ 12,170 Current portion finance lease obligations $ 5,540 Finance lease obligations 4,886 Total finance lease obligations $ 10,426 Weighted Average Remaining Lease Term (years) Operating leases 6.24 Finance leases 1.57 Weighted Average Discount Rate Operating leases 5.25 % Finance leases 6.85 % |
Schedule of Future Minimum Lease Obligations, Finance Lease | The Partnership’s future minimum lease obligations as of March 31, 2019 consist of the following: Operating Leases Finance Leases Year 1 $ 9,920 $ 6,067 Year 2 7,152 4,641 Year 3 4,655 223 Year 4 2,656 204 Year 5 1,594 — Thereafter 7,577 — Total $ 33,554 $ 11,135 Less amounts representing interest costs (5,119 ) (709 ) Total lease liability $ 28,435 $ 10,426 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Other Assets | Components of "Other assets, net" were as follows: March 31, 2019 December 31, 2018 Customer contracts and relationships, net $ 17,194 $ 18,222 Other intangible assets 1,213 1,310 Other 5,282 4,541 $ 23,689 $ 24,073 |
Schedule of Other Accrued Liabilities | Components of "Other accrued liabilities" were as follows: March 31, 2019 December 31, 2018 Accrued interest $ 4,239 $ 10,735 Asset retirement obligations — 2,721 Property and other taxes payable 3,492 6,173 Accrued payroll 3,208 3,110 Operating lease liabilities 8,701 — Other 2,510 2,063 $ 22,150 $ 24,802 |
Schedule of Asset Retirement Obligations | The schedule below summarizes the changes in our asset retirement obligations: March 31, 2019 Beginning asset retirement obligations $ 12,429 Accretion expense 124 Liabilities settled (3,900 ) Ending asset retirement obligations 8,653 Current portion of asset retirement obligations 1 — Long-term portion of asset retirement obligations 2 $ 8,653 1 The current portion of asset retirement obligations is included in "Other accrued liabilities" on the Partnership's Consolidated and Condensed Balance Sheets. 2 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Effect of Derivative Instruments on the Consolidated Balance Sheets | The following table summarizes the fair value and classification of the Partnership’s derivative instruments in its Consolidated and Condensed Balance Sheets: Fair Values of Derivative Instruments in the Consolidated and Condensed Balance Sheets Derivative Assets Derivative Liabilities Fair Values Fair Values Balance Sheet Location March 31, 2019 December 31, 2018 Balance Sheet Location March 31, 2019 December 31, 2018 Derivatives not designated as hedging instruments: Current: Commodity contracts Fair value of derivatives $ 150 $ 4 Fair value of derivatives $ — $ — Total derivatives not designated as hedging instruments $ 150 $ 4 $ — $ — |
Effect of Derivative Instruments on the Consolidated Statement of Operations | Effect of Derivative Instruments on the Consolidated and Condensed Statements of Operations For the Three Months Ended March 31, 2019 and 2018 Location of Gain (Loss) Recognized in Income on Derivatives Amount of Gain (Loss) Recognized in Income on Derivatives 2019 2018 Derivatives not designated as hedging instruments: Commodity contracts Cost of products sold $ (239 ) $ 2,470 Total effect of derivatives not designated as hedging instruments $ (239 ) $ 2,470 |
Partners' Capital (Tables)
Partners' Capital (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Partners' Capital Notes [Abstract] | |
Reconciliation of Net Income to Partners Interest in Net Income | The following are the unit amounts used to compute the basic and diluted earnings per limited partner unit for the periods presented: Three Months Ended March 31, 2019 2018 Basic weighted average limited partner units outstanding 38,681,925 38,621,375 Dilutive effect of restricted units issued — 8,252 Total weighted average limited partner diluted units outstanding 38,681,925 38,629,627 Three Months Ended March 31, 2019 2018 Continuing operations: Income (loss) from continuing operations $ (3,656 ) $ 13,504 Less pre-acquisition income allocated to the general partner — (2,218 ) Less general partner’s interest in net income (loss): Distributions payable on behalf of general partner interest 197 345 General partner interest in undistributed loss (270 ) (120 ) Less income (loss) allocable to unvested restricted units (2 ) 7 Limited partners’ interest in net income (loss) $ (3,581 ) $ 11,054 Three Months Ended March 31, 2019 2018 Discontinued operations: Income from discontinued operations $ — $ 1,532 Less general partner’s interest in net income (loss): Distributions payable on behalf of general partner interest — 47 General partner interest in undistributed loss — (16 ) Less income allocable to unvested restricted units — 1 Limited partners’ interest in net income $ — $ 1,500 |
Unit Based Awards (Tables)
Unit Based Awards (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 2018 Employees $ 329 $ 96 Non-employee directors 23 36 Total unit-based compensation expense $ 352 $ 132 |
Summary of Restricted Unit Activity | A summary of the restricted unit activity for the three months ended March 31, 2019 is provided below: Number of Units Weighted Average Grant-Date Fair Value Per Unit Non-vested, beginning of period 624,125 $ 13.78 Granted (TBRU) 16,944 $ 12.45 Vested (107,762 ) $ 13.82 Forfeited (118,087 ) $ 13.90 Non-Vested, end of period 415,220 $ 13.77 Aggregate intrinsic value, end of period $ 5,169 |
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 months ended March 31, 2019 and 2018 is provided below: Three Months Ended March 31, 2019 2018 Aggregate intrinsic value of units vested $ 1,351 $ 1,188 Fair value of units vested 1,551 2,232 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 2018 Revenues: Terminalling and storage $ 18,972 $ 20,008 Transportation 5,643 6,693 Product sales: Sulfur services 7 386 Terminalling and storage 414 238 421 624 $ 25,036 $ 27,325 The impact of related party cost of products sold is reflected in the consolidated and condensed financial statements as follows: Three Months Ended March 31, 2019 2018 Cost of products sold: Sulfur services $ 2,574 $ 2,848 Terminalling and storage 5,909 5,579 $ 8,483 $ 8,427 The impact of related party operating expenses is reflected in the consolidated and condensed financial statements as follows: Three Months Ended March 31, 2019 2018 Operating expenses: Transportation $ 14,980 $ 15,047 Natural gas services 2,025 2,199 Sulfur services 924 1,339 Terminalling and storage 4,607 4,503 $ 22,536 $ 23,088 The impact of related party selling, general and administrative expenses is reflected in the consolidated and condensed financial statements as follows: Three Months Ended March 31, 2019 2018 Selling, general and administrative: Transportation $ 1,728 $ 213 Natural gas services 1,189 2,254 Sulfur services 716 659 Terminalling and storage 717 681 Indirect, including overhead allocation 4,185 4,119 $ 8,535 $ 7,926 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting by Segment | Three Months Ended March 31, 2019 Operating Revenues Intersegment Revenues Eliminations Operating Revenues after Eliminations Depreciation and Amortization Operating Income (Loss) after Eliminations Capital Expenditures and Plant Turnaround Costs Terminalling and storage $ 55,892 $ (1,721 ) $ 54,171 $ 7,837 $ 4,815 $ 5,345 Natural gas services 127,408 — 127,408 4,707 7,960 623 Sulfur services 31,593 — 31,593 2,868 6,380 2,206 Transportation 45,186 (7,391 ) 37,795 3,570 (3,880 ) 2,461 Indirect selling, general and administrative — — — — (4,567 ) — Total $ 260,079 $ (9,112 ) $ 250,967 $ 18,982 $ 10,708 $ 10,635 Three Months Ended March 31, 2018 Operating Revenues Intersegment Revenues Eliminations Operating Revenues after Eliminations Depreciation and Amortization Operating Income (Loss) after Eliminations Capital Expenditures and Plant Turnaround Costs Terminalling and storage $ 61,983 $ (1,473 ) $ 60,510 $ 10,159 $ 3,696 $ 2,121 Natural gas services 174,519 (1 ) 174,518 5,301 21,791 1,009 Sulfur services 37,687 — 37,687 2,064 10,166 1,548 Transportation 41,937 (7,578 ) 34,359 2,466 (5,039 ) 9,683 Indirect selling, general and administrative — — — — (4,231 ) — Total $ 316,126 $ (9,052 ) $ 307,074 $ 19,990 $ 26,383 $ 14,361 |
Assets by Segment | The Partnership's assets by reportable segment as of March 31, 2019 and December 31, 2018 , are as follows: March 31, 2019 December 31, 2018 Total assets: Terminalling and storage $ 314,925 $ 298,784 Natural gas services 476,106 512,817 Sulfur services 123,213 115,498 Transportation 180,824 146,529 Total assets $ 1,095,068 $ 1,073,628 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | March 31, 2019 December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value 2021 Senior unsecured notes $ 373,090 $ 369,560 $ 372,996 $ 360,138 Level 2 March 31, 2019 December 31, 2018 Commodity derivative contracts, net $ 150 $ 4 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense | Three Months Ended March 31, 2019 2018 Provision for income taxes $ 696 $ 149 |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Details) $ in Thousands | Jan. 02, 2019terminal | Mar. 31, 2019USD ($)segment | Mar. 31, 2018USD ($) | Jul. 31, 2018mi | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Number of primary business lines | segment | 4 | |||||
Increase in operating expenses | [1] | $ 56,656 | $ 56,934 | [2] | ||
Decrease in cost of products sold | (152,757) | (192,836) | [2] | |||
Discontinued Operations, Disposed of by Sale | West Texas LPG Pipeline L.P. | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Ownership percentage | 20.00% | |||||
Length of common-carrier pipeline system (in miles) | mi | 2,300 | |||||
Martin Transport Inc | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Increase in operating expenses | 25,536 | |||||
Number of terminals | terminal | 23 | |||||
Reclassification Of Certain Terminalling And Storage Product Expenses | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Increase in operating expenses | $ 1,547 | |||||
Decrease in cost of products sold | [1] | $ 1,547 | ||||
[1] | Related Party Transactions Included Above Three Months Ended March 31, 2019 2018 1 Revenues:* Terminalling and storage $ 18,972 $ 20,008 Transportation 5,643 6,693 Product Sales 421 624 Costs and expenses:* Cost of products sold: (excluding depreciation and amortization) Sulfur services 2,574 2,848 Terminalling and storage 5,909 5,579 Expenses: Operating expenses 22,536 23,088 Selling, general and administrative 8,535 7,926 | |||||
[2] | Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation. |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ in Thousands | Jan. 02, 2019USD ($)terminal | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | [1] |
Business Acquisition [Line Items] | ||||
Excess purchase price over carrying value of acquired assets | $ 102,393 | $ 26 | ||
Martin Transport Inc | ||||
Business Acquisition [Line Items] | ||||
Number of terminals | terminal | 23 | |||
Excess purchase price over carrying value of acquired assets | $ 102,393 | |||
[1] | Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation. |
Acquisitions - Purchase Price (
Acquisitions - Purchase Price (Details) - USD ($) $ in Thousands | Jan. 02, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | [1] |
Business Acquisition [Line Items] | ||||
Cash consideration paid | $ 23,720 | $ 0 | ||
Martin Transport Inc | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 135,000 | |||
Plus: Working Capital Adjustment | 2,795 | |||
Less: Finance lease obligations assumed | (11,682) | |||
Cash consideration paid | 126,113 | |||
Earn-out based on performance thresholds | $ 10,000 | |||
[1] | Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation. |
Acquisitions - Assets Acquired
Acquisitions - Assets Acquired (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 02, 2019 | Dec. 31, 2018 | [1] |
Business Acquisition [Line Items] | ||||
Goodwill | $ 17,785 | $ 17,785 | ||
Martin Transport Inc | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable, net | $ 11,724 | |||
Inventories | 1,138 | |||
Due from affiliates | 1,042 | |||
Other current assets | 897 | |||
Property, plant and equipment, net | 25,383 | |||
Goodwill | 489 | |||
Other noncurrent assets | 362 | |||
Current installments of finance lease obligations | (5,409) | |||
Accounts payable | (2,564) | |||
Due to affiliates | (482) | |||
Other accrued liabilities | (2,588) | |||
Finance lease obligations, net of current installments | (6,272) | |||
Historical carrying value of assets acquired | $ 23,720 | |||
[1] | Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation. |
Acquisitions - Income Statement
Acquisitions - Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | |||
Business Acquisition [Line Items] | ||||
Revenues | $ 250,967 | $ 307,074 | [1] | |
Operating expenses | [2] | 56,656 | 56,934 | [1] |
Selling, general and administrative | [2] | 11,144 | 10,939 | [1] |
Depreciation and amortization | 18,982 | 19,990 | [1],[3] | |
Total costs and expenses | 239,539 | 280,699 | [1] | |
Other operating income, net | (720) | 8 | [1] | |
Operating income (loss) | 10,708 | 26,383 | [1] | |
Interest expense | (13,671) | (12,730) | [1] | |
Net income (loss) before taxes | (2,960) | 13,653 | [1] | |
Income tax expense | (696) | (149) | [1] | |
Net income (loss) | (3,656) | 15,036 | [1],[3] | |
Martin Transport Inc | ||||
Business Acquisition [Line Items] | ||||
Operating expenses | 25,536 | |||
Selling, general and administrative | 1,340 | |||
Depreciation and amortization | 780 | |||
Total costs and expenses | 27,656 | |||
Other operating income, net | 10 | |||
Operating income (loss) | 2,263 | |||
Interest expense | (45) | |||
Net income (loss) before taxes | 2,218 | |||
Income tax expense | 0 | |||
Net income (loss) | 2,218 | |||
Transportation | ||||
Business Acquisition [Line Items] | ||||
Revenues | [2] | $ 37,795 | 34,359 | [1] |
Transportation | Martin Transport Inc | ||||
Business Acquisition [Line Items] | ||||
Revenues | $ 29,909 | |||
[1] | Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation. | |||
[2] | Related Party Transactions Included Above Three Months Ended March 31, 2019 2018 1 Revenues:* Terminalling and storage $ 18,972 $ 20,008 Transportation 5,643 6,693 Product Sales 421 624 Costs and expenses:* Cost of products sold: (excluding depreciation and amortization) Sulfur services 2,574 2,848 Terminalling and storage 5,909 5,579 Expenses: Operating expenses 22,536 23,088 Selling, general and administrative 8,535 7,926 | |||
[3] | Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation. |
Divestitures and Discontinued_3
Divestitures and Discontinued Operations - Discontinued Operations (Details) $ in Thousands | Jul. 31, 2018USD ($)mi | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income from discontinued operations, net of income taxes | $ 0 | $ 1,532 | [1],[2] | |
West Texas LPG Pipeline L.P. | Discontinued Operations, Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Ownership percentage | 20.00% | |||
Length of common-carrier pipeline system (in miles) | mi | 2,300 | |||
Proceeds from sale of equity method investments | $ 193,705 | |||
Total costs and expenses and other, net, excluding depreciation and amortization1 | (63) | |||
Equity in earnings | 1,595 | |||
Income from discontinued operations before income taxes | 1,532 | |||
Income tax expense | 0 | |||
Income from discontinued operations, net of income taxes | $ 1,532 | |||
[1] | Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation. | |||
[2] | Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation. |
Divestitures and Discontinued_4
Divestitures and Discontinued Operations - Long-Lived Assets Held-for-Sale (Details) - Disposal Group, Held-for-sale, Not Discontinued Operations - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets held for sale | $ 5,502 | $ 5,652 |
Terminalling and storage | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets held for sale | 3,552 | 3,552 |
Transportation | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets held for sale | $ 1,950 | $ 2,100 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | |||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 250,967 | $ 307,074 | [1] | |
Lubricant product sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | [2] | 31,067 | 36,463 | [1] |
Throughput and storage | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | [2] | 23,104 | 24,047 | [1] |
Natural gas liquids product sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | [2] | 116,474 | 159,162 | [1] |
Natural gas storage | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | [2] | 10,934 | 15,356 | [1] |
Sulfur services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,859 | 2,787 | [1] | |
Terminalling and storage segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 54,171 | 60,510 | ||
Terminalling and storage segment | Lubricant product sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 31,067 | 36,463 | ||
Terminalling and storage segment | Throughput and storage | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 23,104 | 24,047 | ||
Natural gas services segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 127,408 | 174,518 | ||
Natural gas services segment | Natural gas liquids product sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 116,474 | 159,162 | ||
Natural gas services segment | Natural gas storage | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 10,934 | 15,356 | ||
Sulfur service segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 31,593 | 37,687 | ||
Sulfur service segment | Sulfur product sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 9,952 | 11,837 | ||
Sulfur service segment | Fertilizer product sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 18,782 | 23,063 | ||
Sulfur service segment | Sulfur services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,859 | 2,787 | ||
Transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 37,795 | 34,359 | ||
Transportation | Land transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 24,119 | 22,905 | ||
Transportation | Inland transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 12,477 | 9,692 | ||
Transportation | Offshore transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 1,199 | $ 1,762 | ||
[1] | Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation. | |||
[2] | Related Party Transactions Included Above Three Months Ended March 31, 2019 2018 1 Revenues:* Terminalling and storage $ 18,972 $ 20,008 Transportation 5,643 6,693 Product Sales 421 624 Costs and expenses:* Cost of products sold: (excluding depreciation and amortization) Sulfur services 2,574 2,848 Terminalling and storage 5,909 5,579 Expenses: Operating expenses 22,536 23,088 Selling, general and administrative 8,535 7,926 |
Revenue - Estimated Revenue Exp
Revenue - Estimated Revenue Expected to be Recognized in Future (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 83,755 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | Throughput and storage | Terminalling and storage | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 37,676 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | Natural gas storage | Natural gas services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 28,593 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | Sulfur product sales | Sulfur services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 12,811 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | Offshore transportation | Transportation | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 4,675 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 86,372 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | Throughput and storage | Terminalling and storage | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 49,355 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | Natural gas storage | Natural gas services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 32,119 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | Sulfur product sales | Sulfur services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 4,898 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | Offshore transportation | Transportation | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 0 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 74,099 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | Throughput and storage | Terminalling and storage | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 46,642 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | Natural gas storage | Natural gas services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 26,276 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | Sulfur product sales | Sulfur services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 1,181 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | Offshore transportation | Transportation | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 0 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 67,645 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Throughput and storage | Terminalling and storage | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 42,735 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Natural gas storage | Natural gas services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 24,615 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Sulfur product sales | Sulfur services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 295 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Offshore transportation | Transportation | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 0 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 52,961 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Throughput and storage | Terminalling and storage | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 42,854 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Natural gas storage | Natural gas services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 10,107 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Sulfur product sales | Sulfur services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 0 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Offshore transportation | Transportation | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 0 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 392,624 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Throughput and storage | Terminalling and storage | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 392,624 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Natural gas storage | Natural gas services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 0 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Sulfur product sales | Sulfur services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 0 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Offshore transportation | Transportation | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 0 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 757,456 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | Throughput and storage | Terminalling and storage | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | 611,886 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | Natural gas storage | Natural gas services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | 121,710 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | Sulfur product sales | Sulfur services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | 19,185 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | Offshore transportation | Transportation | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 4,675 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |||
Natural gas liquids | $ 14,750 | $ 32,388 | |
Sulfur | 14,648 | 12,818 | |
Fertilizer | 13,425 | 14,208 | |
Lubricants | 23,752 | 22,887 | |
Other | 3,966 | 3,906 | |
Inventories | $ 70,541 | $ 86,207 | [1] |
[1] | Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation. |
Investment in West Texas LPG _3
Investment in West Texas LPG Pipeline L.P. - Narrative (Details) - mi | Jul. 31, 2018 | Jul. 30, 2018 |
West Texas LPG Pipeline L.P. | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 20.00% | |
Length of common-carrier pipeline system (in miles) | 2,300 | |
West Texas LPG Pipeline L.P. | Common Limited | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 19.80% | |
West Texas LPG Pipeline L.P. | General Partner | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 0.20% | |
West Texas LPG Pipeline L.P. | Discontinued Operations, Disposed of by Sale | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 20.00% | |
Length of common-carrier pipeline system (in miles) | 2,300 |
Investment in West Texas LPG _4
Investment in West Texas LPG Pipeline L.P. - Selected Financial Information for Equity Method Investees (Details) - West Texas LPG Pipeline L.P. $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Schedule of Equity Method Investments [Line Items] | |
Revenues | $ 23,041 |
Net Income | $ 7,706 |
Long-Term Debt (Details)
Long-Term Debt (Details) | 3 Months Ended | ||||||||
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Jun. 30, 2019 | Apr. 16, 2019USD ($) | Apr. 15, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2015USD ($) | Apr. 30, 2014USD ($) | Feb. 28, 2013USD ($) | |
Debt Instrument [Line Items] | |||||||||
Total long-term debt, net of current portion | $ 774,200,000 | $ 656,459,000 | |||||||
Less: current portion | (401,110,000) | 0 | |||||||
Total long-term debt, net of current portion | 373,090,000 | 656,459,000 | |||||||
Cash paid for interest | 19,363,000 | $ 18,878,000 | |||||||
Capitalized interest | 2,000 | $ 161,000 | |||||||
Revolving Loan Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Total long-term debt, net of current portion | 401,110,000 | 283,463,000 | |||||||
Face amount | $ 664,444,000 | ||||||||
Weighted average interest rate | 5.49% | ||||||||
Unamortized debt issuance costs | $ 2,890,000 | 3,537,000 | |||||||
Leverage ratio | 5.85 | ||||||||
Revolving Loan Facility | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Applicable margins | 3.00% | ||||||||
Revolving Loan Facility | LIBOR | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Applicable margins | 2.00% | ||||||||
Revolving Loan Facility | LIBOR | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Applicable margins | 3.00% | ||||||||
Revolving Loan Facility | Prime Rate | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Applicable margins | 1.00% | ||||||||
Revolving Loan Facility | Prime Rate | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Applicable margins | 2.00% | ||||||||
Senior Notes | Senior Notes 7.25% | |||||||||
Debt Instrument [Line Items] | |||||||||
Total long-term debt, net of current portion | $ 373,090,000 | 372,996,000 | |||||||
Face amount | 400,000,000 | $ 150,000,000 | $ 250,000,000 | ||||||
Unamortized debt issuance costs | $ 1,283,000 | 1,454,000 | |||||||
Stated interest rate | 7.25% | ||||||||
Unamortized premium | $ 573,000 | $ 650,000 | |||||||
Repurchase amount | $ 26,200,000 | ||||||||
Subsequent Event | Revolving Loan Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount | $ 500,000,000 | $ 664,444,000 | |||||||
Scenario, Forecast | Revolving Loan Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Leverage ratio | 5.85 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |||||
Mar. 31, 2019 | Mar. 31, 2018 | Jan. 02, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | [1] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Increase in assets | $ 1,095,068 | $ 1,073,628 | ||||
Increase in liabilities | 931,277 | $ 785,196 | ||||
Right-of-use assets (Note 9) | 28,109 | |||||
Operating lease liability | $ 28,435 | |||||
Lease termination term | 1 year | |||||
Non-cancelable revenue arrangements, future minimum revenues, 2019 | $ 12,303 | |||||
Non-cancelable revenue arrangements, future minimum revenues, 2020 | 13,345 | |||||
Non-cancelable revenue arrangements, future minimum revenues, 2021 | 10,576 | |||||
Non-cancelable revenue arrangements, future minimum revenues, 2022 | 10,576 | |||||
Non-cancelable revenue arrangements, future minimum revenues, 2023 | 10,576 | |||||
Non-cancelable revenue arrangements, future minimum revenues, subsequent years | 58,128 | |||||
Lease not yet commenced, amount | $ 1,300 | |||||
Lease not yet commenced, term | 2 years | |||||
Rent expense | $ 6,366 | |||||
Accounting Standards Update 2016-02 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Increase in assets | $ 19,047 | |||||
Increase in liabilities | $ 19,047 | |||||
Martin Transport Inc | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Right-of-use assets (Note 9) | $ 6,505 | |||||
Operating lease liability | $ 6,505 | |||||
Minimum | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Lease term | 1 year | |||||
Maximum | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Lease term | 18 years | |||||
Lease renewal term | 5 years | |||||
[1] | Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation. |
Leases - Future Minimum Lease O
Leases - Future Minimum Lease Obligations (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Operating Leases | |
Year 1 | $ 13,126 |
Year 2 | 7,194 |
Year 3 | 4,262 |
Year 4 | 2,642 |
Year 5 | 1,749 |
Thereafter | 7,823 |
Total | 36,796 |
Operating Leases | |
Year 1 | 9,920 |
Year 2 | 7,152 |
Year 3 | 4,655 |
Year 4 | 2,656 |
Year 5 | 1,594 |
Thereafter | 7,577 |
Total | 33,554 |
Less amounts representing interest costs | (5,119) |
Total lease liability | 28,435 |
Finance Leases | |
Year 1 | 6,067 |
Year 2 | 4,641 |
Year 3 | 223 |
Year 4 | 204 |
Year 5 | 0 |
Thereafter | 0 |
Total | 11,135 |
Less amounts representing interest costs | (709) |
Total lease liability | $ 10,426 |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 5,290 |
Finance lease cost: | |
Amortization of right-of-use assets | 622 |
Interest on lease liabilities | 183 |
Total finance lease cost | $ 805 |
Leases - Cash Flow Information
Leases - Cash Flow Information (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 5,310 |
Operating cash flows from finance leases | 183 |
Financing cash flows from finance leases | 1,256 |
Right-of-use assets obtained in exchange for lease obligations: | |
Operating leases | 5,245 |
Finance leases | $ 0 |
Leases - Balance Sheet Informat
Leases - Balance Sheet Information (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Operating Leases | ||
Operating lease right-of-use assets | $ 28,109 | |
Current portion of operating lease liabilities included in Other accrued liabilities | 8,701 | $ 0 |
Operating lease liabilities | 19,734 | |
Total operating lease liabilities | 28,435 | |
Finance Leases | ||
Property, plant and equipment, at cost | 14,058 | |
Accumulated depreciation | (1,888) | |
Property, plant and equipment, net | 12,170 | |
Current portion finance lease obligations | 5,540 | |
Finance lease obligations | 4,886 | |
Present value of net minimum finance lease payments | $ 10,426 | |
Weighted Average Remaining Lease Term (years) | ||
Operating leases | 6 years 2 months 26 days | |
Finance leases | 1 year 6 months 25 days | |
Weighted Average Discount Rate | ||
Operating leases | 5.25% | |
Finance leases | 6.85% |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information - Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |||
Customer contracts and relationships, net | $ 17,194 | $ 18,222 | |
Other intangible assets | 1,213 | 1,310 | |
Other | 5,282 | 4,541 | |
Other assets, net | 23,689 | 24,073 | [1] |
Accumulated amortization of intangible assets | $ 46,987 | $ 44,510 | |
[1] | Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation. |
Supplemental Balance Sheet In_4
Supplemental Balance Sheet Information - Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |||
Accrued interest | $ 4,239 | $ 10,735 | |
Asset retirement obligations | 0 | 2,721 | |
Property and other taxes payable | 3,492 | 6,173 | |
Accrued payroll | 3,208 | 3,110 | |
Operating lease liabilities | 8,701 | 0 | |
Other | 2,510 | 2,063 | |
Total other accrued liabilities | $ 22,150 | $ 24,802 | [1] |
[1] | Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation. |
Supplemental Balance Sheet In_5
Supplemental Balance Sheet Information - Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Beginning asset retirement obligations | $ 12,429 | |
Accretion expense | 124 | |
Liabilities settled | (3,900) | |
Ending asset retirement obligations | 8,653 | |
Current portion of asset retirement obligations | 0 | $ (2,721) |
Long-term portion of asset retirement obligations | $ 8,653 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Narrative (Details) - bbl bbl in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Commodity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional quantity (in bbl) | 472 | 55 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Balance Sheet Derivatives (Details) - Derivatives not designated as hedging instruments - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 150 | $ 4 |
Derivative Liabilities | 0 | 0 |
Commodity contracts | Fair value of derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 150 | 4 |
Derivative Liabilities | $ 0 | $ 0 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Statement of Operations Derivatives (Details) - Derivatives not designated as hedging instruments - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Income on Derivatives | $ (239) | $ 2,470 |
Commodity contracts | Cost of products sold | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Income on Derivatives | $ (239) | $ 2,470 |
Partners' Capital - Narrative (
Partners' Capital - Narrative (Details) | 3 Months Ended |
Mar. 31, 2019shares | |
Limited Partners' Capital Account [Line Items] | |
Common limited partner units (in shares) | 38,899,590 |
Ownership percentage | 98.00% |
Martin Resource Management | |
Limited Partners' Capital Account [Line Items] | |
Voting interest percentage | 51.00% |
Martin Resource Management | |
Limited Partners' Capital Account [Line Items] | |
Common limited partner units (in shares) | 6,114,532 |
Ownership percentage | 15.70% |
Voting interest percentage | 15.70% |
MMGP LLC | |
Limited Partners' Capital Account [Line Items] | |
General partner interest percentage | 2.00% |
MMGP LLC | Martin Resource Management | |
Limited Partners' Capital Account [Line Items] | |
General partner interest percentage | 2.00% |
Partners' Capital - Incentive D
Partners' Capital - Incentive Distribution Rights and Distributions of Available Cash (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Limited Partners' Capital Account [Line Items] | ||
Distribution period | 45 days | |
Martin Midstream GP LLC | ||
Limited Partners' Capital Account [Line Items] | ||
Incentive distribution | $ 0 | $ 0 |
Martin Midstream GP LLC | Target Level 2 | ||
Limited Partners' Capital Account [Line Items] | ||
Target cash distribution, percent | 15.00% | |
Target cash distribution (USD per share) | $ 0.625 | |
Martin Midstream GP LLC | Target Level 3 | ||
Limited Partners' Capital Account [Line Items] | ||
Target cash distribution, percent | 25.00% | |
Target cash distribution (USD per share) | $ 0.75 | |
Martin Midstream GP LLC | Target Level 4 | ||
Limited Partners' Capital Account [Line Items] | ||
Target cash distribution, percent | 50.00% | |
Minimum | Martin Midstream GP LLC | Target Level 1 | ||
Limited Partners' Capital Account [Line Items] | ||
Target cash distribution (USD per share) | $ 0.50 | |
Minimum | Martin Midstream GP LLC | Target Level 2 | ||
Limited Partners' Capital Account [Line Items] | ||
Target cash distribution (USD per share) | 0.55 | |
Minimum | Martin Midstream GP LLC | Target Level 3 | ||
Limited Partners' Capital Account [Line Items] | ||
Target cash distribution (USD per share) | 0.625 | |
Minimum | Martin Midstream GP LLC | Target Level 4 | ||
Limited Partners' Capital Account [Line Items] | ||
Target cash distribution (USD per share) | 0.75 | |
Maximum | Martin Midstream GP LLC | Target Level 1 | ||
Limited Partners' Capital Account [Line Items] | ||
Target cash distribution (USD per share) | $ 0.55 | |
MMGP LLC | ||
Limited Partners' Capital Account [Line Items] | ||
General partner interest percentage | 2.00% | |
MMGP LLC | Martin Midstream GP LLC | ||
Limited Partners' Capital Account [Line Items] | ||
General partner interest percentage | 2.00% | |
MMGP LLC | Martin Midstream GP LLC | Target Level 1 | ||
Limited Partners' Capital Account [Line Items] | ||
Target cash distribution, percent | 2.00% |
Partners' Capital - Net Income
Partners' Capital - Net Income Per Unit (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Schedule of Reconciliation of Net Income from Continuing and Discontinuing Operations [Line Items] | |||
Income (loss) from continuing operations | $ (3,656) | $ 13,504 | [1],[2] |
Less pre-acquisition (income) allocated to the general partner | 0 | (2,218) | [1] |
Income from discontinued operations | 0 | 1,532 | [1],[2] |
Less general partner’s interest in net income (loss): | |||
Less income (loss) allocable to unvested restricted units | 2 | (8) | [1] |
Limited partners’ interest in net income (loss) | $ (3,581) | $ 12,554 | [1],[3] |
Basic weighted average limited partner units outstanding (in shares) | 38,681,925 | 38,621,375 | [3] |
Dilutive effect of restricted units issued (in shares) | 0 | 8,252 | |
Total weighted average limited partner diluted units outstanding (in shares) | 38,681,925 | 38,629,627 | [3] |
Continuing operations | |||
Less general partner’s interest in net income (loss): | |||
Distributions payable on behalf of general partner interest | $ 197 | $ 345 | |
General partner interest in undistributed loss | (270) | (120) | |
Less income (loss) allocable to unvested restricted units | (2) | 7 | |
Limited partners’ interest in net income (loss) | (3,581) | 11,054 | |
Discontinued operations | |||
Less general partner’s interest in net income (loss): | |||
Distributions payable on behalf of general partner interest | 0 | 47 | |
General partner interest in undistributed loss | 0 | (16) | |
Less income (loss) allocable to unvested restricted units | 0 | 1 | |
Limited partners’ interest in net income (loss) | $ 0 | $ 1,500 | |
[1] | Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation. | ||
[2] | Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation. | ||
[3] | Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation. |
Unit Based Awards - Schedule of
Unit Based Awards - Schedule of Compensation Costs (Details) - Selling, General and Administrative Expenses - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total unit-based compensation expense | $ 352 | $ 132 |
Employees | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total unit-based compensation expense | 329 | 96 |
Non-employee directors | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total unit-based compensation expense | $ 23 | $ 36 |
Unit Based Awards - Narrative (
Unit Based Awards - Narrative (Details) $ in Thousands | Jan. 24, 2023shares | Jan. 24, 2022shares | Jan. 24, 2021shares | Jan. 24, 2020shares | Feb. 11, 2019directorshares | Mar. 01, 2018shares | Mar. 31, 2019USD ($)shares | May 26, 2017shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares authorized (in shares) | 3,000,000 | |||||||
Restricted Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vested, number of units (in shares) | 107,762 | |||||||
Unrecognized compensation cost related to non-vested restricted units | $ | $ 2,990 | |||||||
Weighted average period for recognition (in years) | 2 years 3 months | |||||||
Restricted Units | Employees | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period (in years) | 3 years | |||||||
Restricted Units | Non-employee directors | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period (in years) | 4 years | |||||||
Time Based Restricted Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period (in years) | 3 years | |||||||
Granted, number of units (in shares) | 16,944 | |||||||
Number of independent directors receiving grants | director | 3 | |||||||
Time Based Restricted Units | Employees | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted, number of units (in shares) | 301,550 | |||||||
Time Based Restricted Units | Non-employee directors | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted, number of units (in shares) | 5,648 | |||||||
Performance Based Restricted Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period (in years) | 3 years | |||||||
Performance Based Restricted Units | Employees | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted, number of units (in shares) | 317,925 | |||||||
Scenario, Forecast | Time Based Restricted Units | Non-employee directors | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vested, number of units (in shares) | 1,412 | 1,412 | 1,412 | 1,412 |
Unit Based Awards - Restricted
Unit Based Awards - Restricted Unit Activity (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($)$ / sharesshares | |
Restricted Units | |
Number of Units | |
Non-vested, beginning of period, number of units (in shares) | shares | 624,125 |
Vested, number of units (in shares) | shares | (107,762) |
Forfeited, number of units (in shares) | shares | (118,087) |
Non-vested, end of period, number of units (in shares) | shares | 415,220 |
Weighted Average Grant-Date Fair Value Per Unit | |
Non-vested, beginning of period, weighted average grant-date fair value per unit (USD per share) | $ / shares | $ 13.78 |
Vested, weighted average grant-date fair value per unit (USD per share) | $ / shares | 13.82 |
Forfeited, weighted average grant-date fair value per unit (USD per share) | $ / shares | 13.90 |
Non-vested, end of period, weighted average grant-date fair value per unit (USD per share) | $ / shares | $ 13.77 |
Aggregate intrinsic value, end of period | $ | $ 5,169 |
Time Based Restricted Units | |
Number of Units | |
Granted, number of units (in shares) | shares | 16,944 |
Weighted Average Grant-Date Fair Value Per Unit | |
Granted, weighted average grant-date fair value per unit (USD per share) | $ / shares | $ 12.45 |
Unit Based Awards - Intrinsic a
Unit Based Awards - Intrinsic and Fair Value (Details) - Restricted Units - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate intrinsic value of units vested | $ 1,351 | $ 1,188 |
Fair value of units vested | $ 1,551 | $ 2,232 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) | 3 Months Ended |
Mar. 31, 2019shares | |
Martin Resource Management | |
Related Party Transaction [Line Items] | |
Number of shares owned (in shares) | 6,114,532 |
Ownership percentage | 15.70% |
Martin Resource Management | MMGP Holdings, LLC | Martin Resource Management | |
Related Party Transaction [Line Items] | |
General partner interest percentage | 51.00% |
MMGP LLC | |
Related Party Transaction [Line Items] | |
General partner interest percentage | 2.00% |
MMGP LLC | Martin Resource Management | |
Related Party Transaction [Line Items] | |
General partner interest percentage | 2.00% |
Related Party Transactions - Om
Related Party Transactions - Omnibus Agreement (Details) - Omnibus Agreement - Martin Resource Management - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2019 | |
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% | ||
Indirect expenses reimbursed | $ 4,164,000 | $ 4,104,000 | |
Subsequent Event | Scenario, Forecast | |||
Related Party Transaction [Line Items] | |||
Approved annual reimbursements for indirect expenses | $ 16,657,000 |
Related Party Transactions - Ma
Related Party Transactions - Master Transportation Services Agreement (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Master Transportation Services Agreement | Martin Resource Management | |
Related Party Transaction [Line Items] | |
Termination written notice, minimum (in days) | 30 days |
Related Party Transactions - _2
Related Party Transactions - Marine Agreements (Details) - Marine Transportation Agreement - Martin Resource Management | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transaction [Line Items] | |
Automatic consecutive term renewal period (in years) | 1 year |
Termination written notice, minimum (in days) | 60 days |
Related Party Transactions - Te
Related Party Transactions - Terminal Services Agreements (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Martin Resource Management | |
Related Party Transaction [Line Items] | |
Termination written notice, minimum (in days) | 60 days |
Related Party Transactions - Ot
Related Party Transactions - Other Agreements (Details) - Martin Resource Management | 3 Months Ended |
Mar. 31, 2019bbl | |
Cross Tolling Agreement | |
Related Party Transaction [Line Items] | |
Production minimum per day (in bbl) | 6,500 |
Annual escalation benchmark percentage | 3.00% |
Sulfuric Acid Sales Agency Agreement | |
Related Party Transaction [Line Items] | |
Partnership notice period to terminate agreement (in days) | 90 days |
Related Party Transactions - Sc
Related Party Transactions - Schedule of the Impact of Related Party Transactions (Details) - Related Party - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues: | ||
Revenue from related parties | $ 25,036 | $ 27,325 |
Cost of products sold: | ||
Cost of products sold | 8,483 | 8,427 |
Operating expenses: | ||
Operating expenses | 22,536 | 23,088 |
Selling, general and administrative: | ||
Selling, general and administrative | 8,535 | 7,926 |
Terminalling and storage | ||
Operating expenses: | ||
Operating expenses | 4,607 | 4,503 |
Transportation | ||
Operating expenses: | ||
Operating expenses | 14,980 | 15,047 |
Natural gas services | ||
Operating expenses: | ||
Operating expenses | 2,025 | 2,199 |
Sulfur services | ||
Operating expenses: | ||
Operating expenses | 924 | 1,339 |
Operating segments | Terminalling and storage | ||
Selling, general and administrative: | ||
Selling, general and administrative | 717 | 681 |
Operating segments | Transportation | ||
Selling, general and administrative: | ||
Selling, general and administrative | 1,728 | 213 |
Operating segments | Natural gas services | ||
Selling, general and administrative: | ||
Selling, general and administrative | 1,189 | 2,254 |
Operating segments | Sulfur services | ||
Selling, general and administrative: | ||
Selling, general and administrative | 716 | 659 |
Indirect, including overhead allocation | ||
Selling, general and administrative: | ||
Selling, general and administrative | 4,185 | 4,119 |
Terminalling and storage | Terminalling and storage | ||
Revenues: | ||
Revenue from related parties | 18,972 | 20,008 |
Transportation | Transportation | ||
Revenues: | ||
Revenue from related parties | 5,643 | 6,693 |
Product sales | ||
Revenues: | ||
Revenue from related parties | 421 | 624 |
Sulfur services | Sulfur services | ||
Revenues: | ||
Revenue from related parties | 7 | 386 |
Cost of products sold: | ||
Cost of products sold | 2,574 | 2,848 |
Terminalling and storage | Terminalling and storage | ||
Revenues: | ||
Revenue from related parties | 414 | 238 |
Cost of products sold: | ||
Cost of products sold | $ 5,909 | $ 5,579 |
Business Segments (Details)
Business Segments (Details) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2019USD ($)segment | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | |||
Segment Reporting [Abstract] | |||||
Number of reportable segments | segment | 4 | ||||
Segment Reporting Information [Line Items] | |||||
Total revenue | $ 250,967 | $ 307,074 | [1] | ||
Depreciation and amortization | 18,982 | 19,990 | [1],[2] | ||
Operating Income (Loss) after Eliminations | 10,708 | 26,383 | [1] | ||
Capital Expenditures and Plant Turnaround Costs | 10,635 | 14,361 | |||
Total assets: | |||||
Total assets | 1,095,068 | $ 1,073,628 | [3] | ||
Terminalling and storage | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 54,171 | 60,510 | |||
Depreciation and amortization | 7,837 | 10,159 | |||
Operating Income (Loss) after Eliminations | 4,815 | 3,696 | |||
Capital Expenditures and Plant Turnaround Costs | 5,345 | 2,121 | |||
Total assets: | |||||
Total assets | 314,925 | 298,784 | |||
Natural gas services | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 127,408 | 174,518 | |||
Depreciation and amortization | 4,707 | 5,301 | |||
Operating Income (Loss) after Eliminations | 7,960 | 21,791 | |||
Capital Expenditures and Plant Turnaround Costs | 623 | 1,009 | |||
Total assets: | |||||
Total assets | 476,106 | 512,817 | |||
Sulfur services | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 31,593 | 37,687 | |||
Depreciation and amortization | 2,868 | 2,064 | |||
Operating Income (Loss) after Eliminations | 6,380 | 10,166 | |||
Capital Expenditures and Plant Turnaround Costs | 2,206 | 1,548 | |||
Total assets: | |||||
Total assets | 123,213 | 115,498 | |||
Transportation | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 37,795 | 34,359 | |||
Depreciation and amortization | 3,570 | 2,466 | |||
Operating Income (Loss) after Eliminations | (3,880) | (5,039) | |||
Capital Expenditures and Plant Turnaround Costs | 2,461 | 9,683 | |||
Total assets: | |||||
Total assets | 180,824 | $ 146,529 | |||
Operating Revenues | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 260,079 | 316,126 | |||
Operating Revenues | Terminalling and storage | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 55,892 | 61,983 | |||
Operating Revenues | Natural gas services | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 127,408 | 174,519 | |||
Operating Revenues | Sulfur services | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 31,593 | 37,687 | |||
Operating Revenues | Transportation | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 45,186 | 41,937 | |||
Intersegment Revenues Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | (9,112) | (9,052) | |||
Intersegment Revenues Eliminations | Terminalling and storage | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | (1,721) | (1,473) | |||
Intersegment Revenues Eliminations | Natural gas services | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 0 | (1) | |||
Intersegment Revenues Eliminations | Sulfur services | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 0 | 0 | |||
Intersegment Revenues Eliminations | Transportation | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | (7,391) | (7,578) | |||
Indirect selling, general and administrative | |||||
Segment Reporting Information [Line Items] | |||||
Depreciation and amortization | 0 | 0 | |||
Operating Income (Loss) after Eliminations | (4,567) | (4,231) | |||
Capital Expenditures and Plant Turnaround Costs | $ 0 | $ 0 | |||
[1] | Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation. | ||||
[2] | Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation. | ||||
[3] | Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation. |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Recurring | Level 2 | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodity derivative contracts, net | $ 150 | $ 4 |
Nonrecurring | 2021 Senior unsecured notes | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
2021 Senior unsecured notes | 373,090 | 372,996 |
Nonrecurring | 2021 Senior unsecured notes | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
2021 Senior unsecured notes | $ 369,560 | $ 360,138 |
Income Taxes (Income Tax Expens
Income Taxes (Income Tax Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Income Tax Disclosure [Abstract] | |||
Provision for income taxes | $ 696 | $ 149 | [1] |
[1] | Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Jan. 02, 2019 | ||
Income Tax Contingency [Line Items] | ||||
Income tax expense | $ 696 | $ 149 | [1] | |
Effective income tax rate percentage | 24.79% | 0.00% | ||
Current federal income tax expense | $ 297 | $ 0 | ||
State income tax expense (benefit) | (218) | 0 | ||
Deferred taxes | 369 | 0 | [2] | |
Deferred tax asset | 24,412 | 0 | ||
Marting Transport Inc. | ||||
Income Tax Contingency [Line Items] | ||||
Income tax expense | $ 448 | 0 | ||
Martin Transport Inc | ||||
Income Tax Contingency [Line Items] | ||||
Income tax expense | $ 0 | |||
Acquisition, deferred income taxes | $ 24,781 | |||
[1] | Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation. | |||
[2] | Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation. |
Subsequent Events (Details)
Subsequent Events (Details) | Apr. 18, 2019$ / shares | Jun. 30, 2019 | Apr. 16, 2019USD ($) | Apr. 15, 2019USD ($) | Mar. 31, 2019USD ($) |
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Dividends declared (USD per share) | $ / shares | $ 0.25 | ||||
Estimated annualized dividends (USD per share) | $ / shares | $ 1 | ||||
Revolving Loan Facility | |||||
Subsequent Event [Line Items] | |||||
Face amount | $ | $ 664,444,000 | ||||
Leverage ratio | 5.85 | ||||
Revolving Loan Facility | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Face amount | $ | $ 500,000,000 | $ 664,444,000 | |||
Scenario, Forecast | Revolving Loan Facility | |||||
Subsequent Event [Line Items] | |||||
Leverage ratio | 5.85 |