Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 31, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | TransMontaigne Partners L.P. | |
Entity Central Index Key | 1,319,229 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 16,222,151 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 |
Consolidated balance sheets
Consolidated balance sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 390 | $ 923 |
Trade accounts receivable, net | 12,164 | 11,017 |
Due from affiliates | 3,491 | 1,509 |
Other current assets | 7,978 | 20,654 |
Total current assets | 24,023 | 34,103 |
Property, plant and equipment, net | 656,761 | 655,053 |
Goodwill | 9,428 | 9,428 |
Investments in unconsolidated affiliates | 231,767 | 233,181 |
Other assets, net | 52,843 | 55,238 |
TOTAL ASSETS | 974,822 | 987,003 |
Current liabilities: | ||
Trade accounts payable | 11,058 | 8,527 |
Accrued liabilities | 26,676 | 17,426 |
Total current liabilities | 37,734 | 25,953 |
Other liabilities | 3,537 | 3,633 |
Long-term debt | 578,523 | 593,200 |
Total liabilities | 619,794 | 622,786 |
Commitments and contingencies (Note 16) | ||
Partners’ equity: | ||
Common unitholders (16,222,151 units issued and outstanding at June 30, 2018 and 16,177,353 units issued and outstanding at December 31, 2017) | 301,372 | 310,769 |
General partner interest (2% interest with 331,055 equivalent units outstanding at June 30, 2018 and 330,150 equivalent units outstanding at December 31, 2017) | 53,656 | 53,448 |
Total partners’ equity | 355,028 | 364,217 |
TOTAL LIABILITIES AND EQUITY | $ 974,822 | $ 987,003 |
Consolidated balance sheets (Pa
Consolidated balance sheets (Parenthetical) - shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Consolidated balance sheets | ||
Common unitholders, units issued | 16,222,151 | 16,177,353 |
Common unitholders, units outstanding | 16,222,151 | 16,177,353 |
General partner interest (as a percent) | 2.00% | 2.00% |
General partner interest, equivalent units outstanding | 331,055 | 330,150 |
Consolidated statements of oper
Consolidated statements of operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue: | ||||
Total revenue | $ 55,344 | $ 45,364 | $ 111,788 | $ 90,214 |
Operating costs and expenses | ||||
Direct operating costs and expenses | (19,275) | (15,984) | (39,420) | (32,495) |
General and administrative expenses | (4,619) | (4,080) | (9,600) | (8,051) |
Insurance expenses | (1,271) | (1,002) | (2,517) | (2,008) |
Equity-based compensation expense | (441) | (352) | (2,458) | (2,169) |
Depreciation and amortization | (13,160) | (8,792) | (24,968) | (17,497) |
Total operating costs and expenses | (38,766) | (30,210) | (78,963) | (62,220) |
Earnings from unconsolidated affiliates | 2,444 | 2,120 | 5,333 | 4,680 |
Operating income | 19,022 | 17,274 | 38,158 | 32,674 |
Other expenses: | ||||
Interest expense | (8,273) | (2,525) | (14,734) | (4,677) |
Amortization of deferred financing costs | (1,289) | (271) | (1,790) | (565) |
Total other expenses | (9,562) | (2,796) | (16,524) | (5,242) |
Net earnings | 9,460 | 14,478 | 21,634 | 27,432 |
Less-earnings allocable to general partner interest including incentive distribution rights | (3,872) | (3,105) | (7,638) | (5,948) |
Net earnings allocable to limited partners | $ 5,588 | $ 11,373 | $ 13,996 | $ 21,484 |
Net earnings per limited partner unit-basic (in dollars per unit) | $ 0.34 | $ 0.70 | $ 0.86 | $ 1.32 |
Net earnings per limited partner unit-diluted (in dollars per unit) | $ 0.34 | $ 0.70 | $ 0.86 | $ 1.32 |
External customers (excluding affiliates) | ||||
Revenue: | ||||
Total revenue | $ 51,379 | $ 43,850 | $ 103,493 | $ 86,930 |
Affiliates | ||||
Revenue: | ||||
Total revenue | $ 3,965 | $ 1,514 | $ 8,295 | $ 3,284 |
Consolidated statements of part
Consolidated statements of partners' equity - USD ($) $ in Thousands | Common units | General partner interest | Total |
Balance at Dec. 31, 2016 | $ 320,042 | $ 52,692 | $ 372,734 |
Increase (Decrease) in Partners' Capital | |||
Distributions to unitholders | (47,349) | (11,985) | (59,334) |
Equity-based compensation | 2,729 | 2,729 | |
Issuance of common units pursuant to our long-term incentive plan | 270 | 270 | |
Settlement of tax withholdings on equity-based compensation | (711) | (711) | |
Contribution of cash by TransMontaigne GP to maintain its 2% general partner interest | 36 | 36 | |
Net earnings | 35,788 | 12,705 | 48,493 |
Balance at Dec. 31, 2017 | 310,769 | 53,448 | 364,217 |
Increase (Decrease) in Partners' Capital | |||
Distributions to unitholders | (25,193) | (7,464) | (32,657) |
Equity-based compensation | 2,458 | 2,458 | |
Settlement of tax withholdings on equity-based compensation | (658) | (658) | |
Contribution of cash by TransMontaigne GP to maintain its 2% general partner interest | 34 | 34 | |
Net earnings | 13,996 | 7,638 | 21,634 |
Balance at Jun. 30, 2018 | $ 301,372 | $ 53,656 | $ 355,028 |
Consolidated statements of par6
Consolidated statements of partners' equity (Parenthetical) | 6 Months Ended |
Jun. 30, 2018shares | |
General partner interest (as a percent) | 2.00% |
Tranche One | |
Issuance of common units pursuant to our savings and retention program (in units) | 44,798 |
Consolidated statements of cash
Consolidated statements of cash flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||||
Net earnings | $ 9,460 | $ 14,478 | $ 21,634 | $ 27,432 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||
Depreciation and amortization | 13,160 | 8,792 | 24,968 | 17,497 |
Earnings from unconsolidated affiliates | (2,444) | (2,120) | (5,333) | (4,680) |
Distributions from unconsolidated affiliates | 3,971 | 4,546 | 7,161 | 8,895 |
Equity-based compensation | 441 | 352 | 2,458 | 2,169 |
Amortization of deferred financing costs | 1,289 | 271 | 1,790 | 565 |
Amortization of deferred revenue | (149) | 10 | (336) | (41) |
Unrealized (gain) loss on derivative instruments | 85 | 38 | 127 | (220) |
Changes in operating assets and liabilities, net of effects from acquisitions and dispositions: | ||||
Trade accounts receivable, net | (1,092) | (79) | (1,090) | 141 |
Due from affiliates | 312 | (446) | (1,982) | (756) |
Other current assets | 3,620 | 1,043 | 1,821 | 2,759 |
Amounts due under long-term terminaling services agreements, net | 176 | (227) | 204 | (325) |
Deposits | 54 | |||
Trade accounts payable | (2,383) | (433) | (809) | 431 |
Accrued liabilities | 9,023 | (200) | 9,250 | 2,467 |
Net cash provided by operating activities | 35,469 | 26,025 | 59,863 | 56,388 |
Cash flows from investing activities: | ||||
Investments in unconsolidated affiliates | (114) | (145) | (1,264) | (2,145) |
Return of investment in unconsolidated affiliates | 850 | 850 | ||
Capital expenditures | (15,452) | (19,145) | (21,955) | (28,645) |
Proceeds from sale of assets | 10,025 | |||
Net cash used in investing activities | (14,716) | (19,290) | (12,344) | (30,790) |
Cash flows from financing activities: | ||||
Proceeds from senior notes | 300,000 | |||
Borrowings under revolving credit facility | 38,900 | 41,100 | 85,500 | 87,100 |
Repayments under revolving credit facility | (42,800) | (31,600) | (392,400) | (76,900) |
Deferred issuance costs | (505) | (296) | (7,871) | (5,364) |
Settlement of tax withholdings on equity-based compensation | (317) | (25) | (658) | (407) |
Distributions paid to unitholders | (16,594) | (14,590) | (32,657) | (28,677) |
Contribution of cash by TransMontaigne GP | 16 | 34 | 22 | |
Net cash used in financing activities | (21,300) | (5,411) | (48,052) | (24,226) |
Increase (decrease) in cash and cash equivalents | (547) | 1,324 | (533) | 1,372 |
Cash and cash equivalents at beginning of period | 937 | 641 | 923 | 593 |
Cash and cash equivalents at end of period | 390 | 1,965 | 390 | 1,965 |
Supplemental disclosures of cash flow information: | ||||
Cash paid for interest | 3,265 | 2,374 | 7,631 | 4,591 |
Property, plant and equipment acquired with accounts payable | $ 6,546 | $ 2,992 | $ 6,546 | $ 2,992 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2018 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Nature of business TransMontaigne Partners L.P. (“we,” “us,” “our,” “the Partnership”) was formed in February 2005 as a Delaware limited partnership. We provide integrated terminaling, storage, transportation and related services for companies engaged in the trading, distribution and marketing of light refined petroleum products, heavy refined petroleum products, crude oil, chemicals, fertilizers and other liquid products. We conduct our operations in the United States along the Gulf Coast, in the Midwest, in Houston and Brownsville, Texas, along the Mississippi and Ohio rivers, in the Southeast and along the West Coast. We are controlled by our general partner, TransMontaigne GP L.L.C. (“TransMontaigne GP”), which as of February 1, 2016 is a wholly‑owned indirect subsidiary of ArcLight Energy Partners Fund VI, L.P. (“ArcLight”). (b) Basis of presentation and use of estimates Our accounting and financial reporting policies conform to accounting principles generally accepted in the United States of America (“GAAP”). The accompanying consolidated financial statements include the accounts of TransMontaigne Partners L.P. and its controlled subsidiaries. Investments where we do not have the ability to exercise control, but do have the ability to exercise significant influence, are accounted for using the equity method of accounting. All inter‑company accounts and transactions have been eliminated in the preparation of the accompanying consolidated financial statements. The accompanying consolidated financial statements include all adjustments (consisting of normal and recurring accruals) considered necessary to present fairly our financial position as of June 30, 2018 and December 31, 2017 and our results of operations for the three and six months ended June 30, 2018 and 2017. Certain reclassifications of previously reported amounts have been made to conform to the current year presentation. The preparation of financial statements in conformity with “GAAP” requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. The following estimates, in management’s opinion, are subjective in nature, require the exercise of judgment, and/or involve complex analyses: business combination estimates and assumptions, useful lives of our plant and equipment and accrued environmental obligations. Changes in these estimates and assumptions will occur as a result of the passage of time and the occurrence of future events. Actual results could differ from these estimates. (c) Accounting for terminal and pipeline operations Effective January 1, 2018, we adopted Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”), applying the modified retrospective transition method, which required us to apply the new standard to (i) all new revenue contracts entered into after January 1, 2018, and (ii) revenue contracts which were not completed as of January 1, 2018. ASC 606 replaces existing revenue recognition requirements in GAAP and requires entities to recognize revenue at an amount that reflects the consideration to which we expect to be entitled in exchange for transferring goods or services to a customer. ASC 606 also requires certain disclosures regarding qualitative and quantitative information regarding the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The adoption of ASC 606 did not result in a transition adjustment nor did it have an impact on the timing or amount of our revenue recognition (See Note 18 of Notes to consolidated financial statements). The adoption of ASC 606 did not result in changes to our accounting for trade accounts receivable (see Note 4 of Notes to consolidated financial statements), contract assets or contract liabilities. We recognize contract assets in situations where revenue recognition under ASC 606 occurs prior to billing the customer based on our rights under the contract. Contract assets are transferred to accounts receivable when the rights become unconditional. At June 30, 2018, we did not have any contract assets related to ASC 606. Contract liabilities primarily relate to consideration received from customers in advance of completing the performance obligation. A performance obligation is a promise in a contract to transfer goods or services to the customer. We recognize contract liabilities under these arrangements as revenue once all contingencies or potential performance obligations have been satisfied by the (i) performance of services or (ii) expiration of the customer’s rights under the contract. Short-term contract liabilities include customer advances and deposits (see Note 10 of Notes to consolidated financial statements). Long-term contract liabilities include deferred revenue related to ethanol blending fees and other projects (See Note 11 of Notes to consolidated financial statements). We generate revenue from terminaling services fees, pipeline transportation fees and management fees. Under ASC 606, we recognize revenue over time or at a point in time, depending on the nature of the performance obligations contained in the respective contract with our customer. The contract transaction price is allocated to each performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of our revenue is recognized pursuant to ASC guidance other than ASC 606. The following is an overview of our significant revenue streams, including a description of the respective performance obligations and related method of revenue recognition. Terminaling services fees. Our terminaling services agreements are structured as either throughput agreements or storage agreements. Our throughput agreements contain provisions that require our customers to make minimum payments, which are based on contractually established minimum volumes of throughput of the customer’s product at our facilities, over a stipulated period of time. Due to this minimum payment arrangement, we recognize a fixed amount of revenue from the customer over a certain period of time, even if the customer throughputs less than the minimum volume of product during that period. In addition, if a customer throughputs a volume of product exceeding the minimum volume, we would recognize additional revenue on this incremental volume. Our storage agreements require our customers to make minimum payments based on the volume of storage capacity available to the customer under the agreement, which results in a fixed amount of recognized revenue. We refer to the fixed amount of revenue recognized pursuant to our terminaling services agreements as being “firm commitments.” The majority of our firm commitments under our terminaling services agreements are accounted for in accordance with ASC 840, Leases (“ASC 840 revenue”). The remainder is recognized in accordance with ASC 606 (“ASC 606 revenue”) where the minimum payment arrangement in each contract is a single performance obligation that is primarily satisfied over time through the contract term. Revenue recognized in excess of firm commitments and revenue recognized based solely on the volume of product distributed or injected are referred to as ancillary. The ancillary revenue associated with terminaling services include volumes of product throughput that exceed the contractually established minimum volumes, injection fees based on the volume of product injected with additive compounds, heating and mixing of stored products, product transfer, railcar handling, butane blending, proceeds from the sale of product gains, wharfage and vapor recovery. The revenue generated by these services is primarily considered optional purchases to acquire additional services or variable consideration that is required to be estimated under ASC 606 for any uncertainty that is not resolved in the period of the service. We account for the majority of ancillary revenue at individual points in time when the services are delivered to the customer. Our ancillary revenue is recognized in accordance with ASC 606. Pipeline transportation fees. We earn pipeline transportation fees at our Diamondback pipeline either based on the volume of product transported or under capacity reservation agreements. Revenue associated with the capacity reservation is recognized ratably over the respective term, regardless of whether the capacity is actually utilized. We earn pipeline transportation fees at our Razorback pipeline based on an allocation of the aggregate fees charged under the capacity agreement with our customer who has contracted for 100% of our Razorback system. For the six months ended June 30, 2018, pipeline transportation revenue is primarily accounted for in accordance with ASC 840. Management fees. We manage and operate certain tank capacity at our Port Everglades South terminal for a major oil company and receive a reimbursement of its proportionate share of operating and maintenance costs. We manage and operate the Frontera joint venture and receive a management fee based on our costs incurred. We also currently manage and operate for an affiliate of PEMEX, Mexico’s state-owned petroleum company, a bi-directional products pipeline connected to our Brownsville terminal facility and receive a management fee. We manage and operate rail sites at certain Southeast terminals on behalf of a major oil company and receive reimbursement for operating and maintenance costs. Management fee revenue is recognized at individual points in time as the services are performed or as the costs are incurred and is primarily accounted for in accordance with ASC 606. (d) Cash and cash equivalents We consider all short‑term investments with a remaining maturity of three months or less at the date of purchase to be cash equivalents. (e) Property, plant and equipment Depreciation is computed using the straight‑line method. Estimated useful lives are 15 to 25 years for terminals and pipelines and 3 to 25 years for furniture, fixtures and equipment. All items of property, plant and equipment are carried at cost. Expenditures that increase capacity or extend useful lives are capitalized. Repairs and maintenance are expensed as incurred. We evaluate long‑lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset group may not be recoverable based on expected undiscounted future cash flows attributable to that asset group. If an asset group is impaired, the impairment loss to be recognized is the excess of the carrying amount of the asset group over its estimated fair value. (f) Investments in unconsolidated affiliates We account for our investments in unconsolidated affiliates, which we do not control but do have the ability to exercise significant influence over, using the equity method of accounting. Under this method, the investment is recorded at acquisition cost, increased by our proportionate share of any earnings and additional capital contributions and decreased by our proportionate share of any losses, distributions received and amortization of any excess investment. Excess investment is the amount by which our total investment exceeds our proportionate share of the book value of the net assets of the investment entity. We evaluate our investments in unconsolidated affiliates for impairment whenever events or circumstances indicate there is a loss in value of the investment that is other than temporary. In the event of impairment, we would record a charge to earnings to adjust the carrying amount to estimated fair value. (g) Environmental obligations We accrue for environmental costs that relate to existing conditions caused by past operations when probable and reasonably estimable (see Note 10 of Notes to consolidated financial statements). Environmental costs include initial site surveys and environmental studies of potentially contaminated sites, costs for remediation and restoration of sites determined to be contaminated and ongoing monitoring costs, as well as fines, damages and other costs, including direct legal costs. Liabilities for environmental costs at a specific site are initially recorded, on an undiscounted basis, when it is probable that we will be liable for such costs, and a reasonable estimate of the associated costs can be made based on available information. Such an estimate includes our share of the liability for each specific site and the sharing of the amounts related to each site that will not be paid by other potentially responsible parties, based on enacted laws and adopted regulations and policies. Adjustments to initial estimates are recorded, from time to time, to reflect changing circumstances and estimates based upon additional information developed in subsequent periods. Estimates of our ultimate liabilities associated with environmental costs are difficult to make with certainty due to the number of variables involved, including the early stage of investigation at certain sites, the lengthy time frames required to complete remediation, technology changes, alternatives available and the evolving nature of environmental laws and regulations. We periodically file claims for insurance recoveries of certain environmental remediation costs with our insurance carriers under our comprehensive liability policies (see Note 5 of Notes to consolidated financial statements). We recognize our insurance recoveries as a credit to income in the period that we assess the likelihood of recovery as being probable. In connection with our previous acquisitions of certain terminals from TransMontaigne LLC, a wholly owned subsidiary of NGL Energy Partners LP and the previous owner of our general partner, TransMontaigne LLC agreed to indemnify us against certain potential environmental claims, losses and expenses at those terminals. Pursuant to the acquisition agreements for each of the Florida (except Pensacola) and Midwest terminals, the Southeast terminals, the Brownsville and the River terminals, and the Pensacola, Florida Terminal, TransMontaigne LLC is obligated to indemnify us against environmental claims, losses and expenses that were associated with the ownership or operation of the terminals prior to the purchase by the Partnership. In each acquisition agreement, TransMontaigne LLC’s maximum indemnification liability is subject to a specified time period for indemnification, cap on indemnification and satisfaction of a deductible amount before indemnification, in each case subject to certain exceptions, limitations and conditions specified therein. TransMontaigne LLC has no indemnification obligations with respect to environmental claims made as a result of additions to or modifications of environmental laws promulgated after certain specified dates. The environmental indemnification obligations of TransMontaigne LLC to us remain in place and were not affected by ArcLight’s acquisition of our general partner on February 1, 2016. (h) Asset retirement obligations Asset retirement obligations are legal obligations associated with the retirement of long‑lived assets that result from the acquisition, construction, development or normal use of the asset. Generally accepted accounting principles require that the fair value of a liability related to the retirement of long‑lived assets be recorded at the time a legal obligation is incurred. Once an asset retirement obligation is identified and a liability is recorded, a corresponding asset is recorded, which is depreciated over the remaining useful life of the asset. After the initial measurement, the liability is adjusted to reflect changes in the asset retirement obligation. If and when it is determined that a legal obligation has been incurred, the fair value of any liability is determined based on estimates and assumptions related to retirement costs, future inflation rates and interest rates. Our long‑lived assets consist of above‑ground storage facilities and underground pipelines. We are unable to predict if and when these long‑lived assets will become completely obsolete and require dismantlement. We have not recorded an asset retirement obligation, or corresponding asset, because the future dismantlement and removal dates of our long‑lived assets is indeterminable and the amount of any associated costs are believed to be insignificant. Changes in our assumptions and estimates may occur as a result of the passage of time and the occurrence of future events. (i) Equity-based compensation Generally accepted accounting principles require us to measure the cost of services received in exchange for an award of equity instruments based on the measurement‑date fair value of the award. That cost is recognized during the period services are provided in exchange for the award (see Note 14 of Notes to consolidated financial statements). (j) Accounting for derivative instruments Generally accepted accounting principles require us to recognize all derivative instruments at fair value in the consolidated balance sheets as assets or liabilities (see Notes 5 and 9 of Notes to consolidated financial statements). Changes in the fair value of our derivative instruments are recognized in earnings. At June 30, 2018 and December 31, 2017, our derivative instruments were limited to interest rate swap agreements with an aggregate notional amount of $50.0 million and $125.0 million, respectively. At June 30, 2018 the remaining derivative instrument expires March 11, 2019. Pursuant to the terms of the interest rate swap agreements, we paid a blended fixed rate of approximately 0.97% and 1.01% for the six months ended June 30, 2018 and the year ended December 31, 2017, respectively, and received interest payments based on the one-month LIBOR. The net difference to be paid or received under the interest rate swap agreements is settled monthly and is recognized as an adjustment to interest expense. The fair value of our interest rate swap agreements are determined using a pricing model based on the LIBOR swap rate and other observable market data. (k) Income taxes No provision for U.S. federal income taxes has been reflected in the accompanying consolidated financial statements because we are treated as a partnership for federal income tax purposes. As a partnership, all income, gains, losses, expenses, deductions and tax credits generated by us flow through to our unitholders. (l) Net earnings per limited partner unit Net earnings allocable to the limited partners, for purposes of calculating net earnings per limited partner unit, are calculated under the two-class method and accordingly are net of the earnings allocable to the general partner interest and distributions payable to any restricted phantom units granted under our equity-based compensation plans that participate in our distributions. The earnings allocable to the general partner interest include the distributions of available cash (as defined by our partnership agreement) attributable to the period to the general partner interest, net of adjustments for the general partner’s share of undistributed earnings, and the incentive distribution rights. Undistributed earnings are the difference between the earnings and the distributions attributable to the period. Undistributed earnings are allocated to the limited partners and general partner interest based on their respective sharing of earnings or losses specified in the partnership agreement, which is based on their ownership percentages of 98% and 2%, respectively. The incentive distribution rights are not allocated a portion of the undistributed earnings given they are not entitled to distributions other than from available cash. Further, the incentive distribution rights do not share in losses under our partnership agreement. Basic net earnings per limited partner unit is computed by dividing net earnings allocable to the limited partners by the weighted average number of limited partner units outstanding during the period. Diluted net earnings per limited partner unit is computed by dividing net earnings allocable to the limited partners by the weighted average number of limited partner units outstanding during the period and any potential dilutive securities outstanding during the period. (m) Comprehensive income Entities that report items of other comprehensive income have the option to present the components of net earnings and comprehensive income in either one continuous financial statement, or two consecutive financial statements. As the Partnership has no components of comprehensive income other than net earnings, no statement of comprehensive income has been presented. (n) Recent accounting pronouncements Effective January 1, 2018 we adopted ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipt and Cash Payments. This ASU requires changes in the presentation of certain items, including but not limited to debt prepayment or debt extinguishment costs; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies and distributions received from equity method investees. The adoption of this ASU did not have a material impact on our unaudited consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases. The objective of this update is to improve financial reporting about leasing transactions. ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. We are currently evaluating the potential impact that the adoption will have on our disclosures and financial statements. Additionally, we are in the process of evaluating and designing the necessary changes to our business processes and controls to support recognition and disclosure under the new standard. As part of our evaluation process we have established an implementation team and are in the process of implementing a third-party supported lease accounting system to facilitate the accounting and financial reporting requirements. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment, to simplify the accounting for goodwill impairment by eliminating step 2 from the goodwill impairment test. ASU 2017-04 is effective for annual reporting periods beginning after December 15, 2019, including interim periods within that reporting period. We are currently evaluating the potential impact that the adoption will have on our disclosures and financial statements. |
TRANSACTIONS WITH AFFILIATES
TRANSACTIONS WITH AFFILIATES | 6 Months Ended |
Jun. 30, 2018 | |
TRANSACTIONS WITH AFFILIATES | |
TRANSACTIONS WITH AFFILIATES | (2) TRANSACTIONS WITH AFFILIATES Third Amended and Restated Omnibus Agreement. Since the inception of the Partnership in 2005 we have been party to an omnibus agreement with the owner of our general partner, which agreement has been amended and restated from time to time. The omnibus agreement provides for the provision of various services for our benefit. The fees payable under the omnibus agreement to the owner of our general partner are comprised of (i) the reimbursement of the direct operating costs and expenses, such as salaries and benefits of operational personnel performing services on site at our terminals and pipelines, which we refer to as on-site employees, (ii) bonus awards to key personnel who perform services for the Partnership, which are typically paid in the Partnership’s units and are subject to the approval by the compensation committee and the conflicts committee of our general partner, and (iii) the administrative fee for the provision of various general and administrative services for the Partnership’s benefit such as legal, accounting, treasury, insurance administration and claims processing, information technology, human resources, credit, payroll, taxes, engineering, environmental safety and occupational health (ESOH) and other corporate services, to the extent such services are not outsourced by the Partnership. The administrative fee is recognized as a component of general and administrative expenses and for the three months ended June 30, 2018 and 2017, the administrative fee paid was approximately $2.7 million and $3.2 million, respectively. For both the six months ended June 30, 2018 and 2017, the administrative fee paid by the Partnership was approximately $6.1 million. In accordance with the Second Amended and Restated Omnibus Agreement and the prior versions thereto, if we acquired or constructed additional facilities, the owner of our general partner may propose a revised administrative fee covering the provision of services for such additional facilities, subject to the approval by the conflicts committee of our general partner. In connection with our previously discussed Phase II buildout at our Collins terminal, the expansion of our Brownsville terminal and pipeline operations and the December 2017 acquisition of the West Coast terminals, on May 7, 2018, the Partnership, with the concurrence of the conflicts committee of our general partner, agreed to an annual increase in the aggregate fees payable to the owner of the general partner under the omnibus agreement of $3.6 million beginning May 13, 2018. To effectuate this $3.6 million annual increase in the aggregate fees payable to the owner of the general partner, on May 7, 2018 the Partnership, with the concurrence of the conflicts committee of our general partner, entered into the Third Amended and Restated Omnibus Agreement by and among the Partnership, our general partner, TransMontaigne Operating GP L.L.C., TransMontaigne Operating Company L.P., Gulf TLP Holdings, LLC, and TLP Management Services LLC. The effect of the change to the omnibus agreement is to allow the Partnership to assume the costs and expenses of personnel performing engineering and ESOH services for and on behalf of the Partnership and to receive an equal and offsetting decrease in the administrative fee. These costs and expenses are expected to approximate $8.9 million in 2018. We expect that a significant portion of the assumed engineering costs will be capitalized under generally accepted accounting principles. Prior to the $3.6 million annual increase and the effective date of the Third Amended and Restated Omnibus Agreement, the annual administrative fee was approximately $13.7 million and included the costs and expenses of the personnel performing engineering and ESOH services. Subsequent to the $3.6 million annual increase and the effective date of the Third Amended and Restated Omnibus Agreement, the annual administrative fee will be approximately $8.4 million and the Partnership will bear the approximately $8.9 million costs and expenses of the personnel performing engineering and ESOH services for and on behalf of the Partnership. The administrative fee under the Third Amended and Restated Omnibus Agreement is subject to an increase each calendar year tied to an increase in the consumer price index, if any, plus two percent. If we acquire or construct additional facilities, the owner of our general partner may propose a revised administrative fee covering the provision of services for such additional facilities, subject to approval by the conflicts committee of our general partner. We do not directly employ any of the persons responsible for managing our business. We are managed by our general partner, and all of the officers of our general partner and employees who provide services to the Partnership are employed by TLP Management Services, a wholly owned subsidiary of ArcLight. TLP Management Services provides payroll and maintains all employee benefits programs on behalf of our general partner and the Partnership pursuant to the omnibus agreement. The omnibus agreement will continue in effect until the earlier of (i) ArcLight ceasing to control our general partner or (ii) the election of either us or the owner, following at least 24 months’ prior written notice to the other parties. Operations and reimbursement agreement—Frontera. We have a 50% ownership interest in the Frontera Brownsville LLC joint venture, or (Frontera). We operate Frontera, in accordance with an operations and reimbursement agreement executed between us and Frontera, for a management fee that is based on our costs incurred. Our agreement with Frontera stipulates that we may resign as the operator at any time with the prior written consent of Frontera, or that we may be removed as the operator for good cause, which includes material noncompliance with laws and material failure to adhere to good industry practice regarding health, safety or environmental matters. We recognized revenue related to this operations and reimbursement agreement of approximately $1.3 million and $1.1 million for the three months ended June 30, 2018 and 2017, respectively and approximately $2.8 million and $2.5 million for the six months ended June 30, 2018 and 2017, respectively. Terminaling services agreements—Brownsville terminals. We have terminaling services agreements with Frontera relating to our Brownsville, Texas facility that will expire in June 2019 and June 2020, subject to automatic renewals unless terminated by either party upon 90 days’ and 180 days’ prior notice, respectively. In exchange for its minimum throughput commitments, we have agreed to provide Frontera with approximately 301,000 barrels of storage capacity. We recognized revenue related to these agreements of approximately $0.6 million and $0.4 million for the three months ended June 30, 2018 and 2017, respectively and approximately $1.2 million and $0.8 million for the six months ended June 30, 2018 and 2017, respectively. Terminaling services agreement—Gulf Coast terminals. Associated Asphalt Marketing, LLC is a wholly-owned indirect subsidiary of ArcLight. Effective January 1, 2018, a third party customer assigned their terminaling services agreement relating to our Gulf Coast terminals to Associated Asphalt Marketing, LLC. The agreement will expire in April 2021, subject to two, two-year automatic renewals unless terminated by either party upon 180 days’ prior notice. In exchange for its minimum throughput commitment, we have agreed to provide Associated Asphalt Marketing, LLC with approximately 750,000 barrels of storage capacity. We recognized revenue related to this agreement of approximately $2.1 million and $nil for the three months ended June 30, 2018 and 2017, respectively and approximately $4.3 million and $nil for the six months ended June 30, 2018 and 2017, respectively. |
BUSINESS COMBINATION AND TERMIN
BUSINESS COMBINATION AND TERMINAL ACQUISITION AND DISPOSITION | 6 Months Ended |
Jun. 30, 2018 | |
BUSINESS COMBINATION AND TERMINAL ACQUISITION AND DISPOSITION | |
BUSINESS COMBINATION AND TERMINAL ACQUISITION AND DISPOSITION | (3) BUSINESS COMBINATION, TERMINAL ACQUISITION AND DISPOSITION On December 15, 2017, we acquired the West Coast terminals from a third party for a total purchase price of $276.8 million. The West Coast terminals consist of two waterborne refined product and crude oil terminals located in the San Francisco Bay Area refining complex including a total of 64 storage tanks with approximately 5.0 million barrels of active storage capacity. The West Coast terminals have access to domestic and international crude oil and refined products markets through marine, pipeline, truck and rail logistics capabilities. The accompanying consolidated financial statements include the assets, liabilities and results of operations of the West Coast terminals from December 15, 2017. The purchase price and final assessment of the fair value of the assets acquired and liabilities assumed in the business combination were as follows (in thousands): Other current assets $ 1,037 Property, plant and equipment 228,000 Goodwill 943 Customer relationships 47,000 Total assets acquired 276,980 Environmental obligation 220 Total liabilities assumed 220 Allocated purchase price $ 276,760 Goodwill represents the excess of the consideration paid for the acquired business over the fair value of the individual assets acquired, net of liabilities assumed. Goodwill represents the premium we paid to acquire the skilled workforce. On February 20, 2018 we closed on the purchase of certain assets from a third party. Concurrently we sold these assets to another third party for cash proceeds equal to our purchase price plus expenses. |
CONCENTRATION OF CREDIT RISK AN
CONCENTRATION OF CREDIT RISK AND TRADE ACCOUNTS RECEIVABLE | 6 Months Ended |
Jun. 30, 2018 | |
CONCENTRATION OF CREDIT RISK AND TRADE ACCOUNTS RECEIVABLE | |
CONCENTRATION OF CREDIT RISK AND TRADE ACCOUNTS RECEIVABLE | (4) CONCENTRATION OF CREDIT RISK AND TRADE ACCOUNTS RECEIVABLE Our primary market areas are located in the United States along the Gulf Coast, in the Southeast, in Brownsville, Texas, along the Mississippi and Ohio Rivers, in the Midwest and along the West Coast. We have a concentration of trade receivable balances due from companies engaged in the trading, distribution and marketing of refined products and crude oil. These concentrations of customers may affect our overall credit risk in that the customers may be similarly affected by changes in economic, regulatory or other factors. Our customers’ historical financial and operating information is analyzed prior to extending credit. We manage our exposure to credit risk through credit analysis, credit approvals, credit limits and monitoring procedures, and for certain transactions we may request letters of credit, prepayments or guarantees. Amounts included in trade accounts receivable that are accounted for as ASC 606 revenue in accordance with ASC 606 approximate $3.5 million at June 30, 2018. We maintain allowances for potentially uncollectible accounts receivable. Trade accounts receivable, net consists of the following (in thousands): June 30, December 31, 2018 2017 Trade accounts receivable $ 12,458 $ 11,128 Less allowance for doubtful accounts (294) (111) $ 12,164 $ 11,017 The following customers accounted for at least 10% of our consolidated revenue in at least one of the periods presented in the accompanying consolidated statements of operations: Three months ended Six months ended June 30, June 30, 2018 2017 2018 2017 NGL Energy Partners LP 23 % 27 % 23 % 26 % RaceTrac Petroleum Inc. 12 % 13 % 12 % 12 % Castleton Commodities International LLC 9 % 13 % 10 % 13 % |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 6 Months Ended |
Jun. 30, 2018 | |
OTHER CURRENT ASSETS | |
OTHER CURRENT ASSETS | (5) OTHER CURRENT ASSETS Other current assets are as follows (in thousands): June 30, December 31, 2018 2017 Prepaid insurance $ 2,761 $ 4,151 Amounts due from insurance companies 1,755 1,981 Additive detergent 1,216 1,715 Unrealized gain on derivative instrument 449 — Deposits and other assets 1,797 12,807 $ 7,978 $ 20,654 Amounts due from insurance companies. We periodically file claims for recovery of environmental remediation costs with our insurance carriers under our comprehensive liability policies. We recognize our insurance recoveries in the period that we assess the likelihood of recovery as being probable (i.e., likely to occur). At June 30, 2018 and December 31, 2017, we have recognized amounts due from insurance companies of approximately $1.8 million and $2.0 million, respectively, representing our best estimate of our probable insurance recoveries. During the six months ended June 30, 2018, we received reimbursements from insurance companies of approximately $0.2 million. Deposits and other assets. At December 31, 2017, deposits and other assets includes a deposit of approximately $10.2 million paid during the fourth quarter 2017 related to expansion opportunities that closed in the first quarter of 2018 (See Note 3 of Notes to consolidated financial statements). |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 6 Months Ended |
Jun. 30, 2018 | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
PROPERTY, PLANT AND EQUIPMENT, NET | (6) PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net is as follows (in thousands): June 30, December 31, 2018 2017 Land $ 83,451 $ 83,310 Terminals, pipelines and equipment 912,245 885,429 Furniture, fixtures and equipment 4,860 4,430 Construction in progress 19,481 21,575 1,020,037 994,744 Less accumulated depreciation (363,276) (339,691) $ 656,761 $ 655,053 |
GOODWILL
GOODWILL | 6 Months Ended |
Jun. 30, 2018 | |
GOODWILL | |
GOODWILL | (7) GOODWILL Goodwill is as follows (in thousands): June 30, December 31, 2018 2017 Brownsville terminals $ 8,485 $ 8,485 West Coast terminals 943 943 $ 9,428 $ 9,428 Goodwill is required to be tested for impairment annually unless events or changes in circumstances indicate it is more likely than not that an impairment loss has been incurred at an interim date. Our annual test for the impairment of goodwill is performed as of December 31. The impairment test is performed at the reporting unit level. Our reporting units are our operating segments (see Note 19 of Notes to consolidated financial statements). The fair value of each reporting unit is determined on a stand‑alone basis from the perspective of a market participant and represents an estimate of the price that would be received to sell the unit as a whole in an orderly transaction between market participants at the measurement date. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered to be impaired. At June 30, 2018 and December 31, 2017, our Brownsville and West Coast terminals contained goodwill. We did not recognize any goodwill impairment charges during the six months ended June 30, 2018 or during the year ended December 31, 2017 for these reporting units. However, a significant decline in the price of our common units with a resulting increase in the assumed market participants’ weighted average cost of capital, the loss of a significant customer, the disposition of significant assets, or an unforeseen increase in the costs to operate and maintain the Brownsville or West Coast terminals could result in the recognition of an impairment charge in the future. |
INVESTMENTS IN UNCONSOLIDATED A
INVESTMENTS IN UNCONSOLIDATED AFFILIATES | 6 Months Ended |
Jun. 30, 2018 | |
INVESTMENTS IN UNCONSOLIDATED AFFILIATES | |
INVESTMENTS IN UNCONSOLIDATED AFFILIATES | (8) INVESTMENTS IN UNCONSOLIDATED AFFILIATES At June 30, 2018 and December 31, 2017, our investments in unconsolidated affiliates include a 42.5% Class A ownership interest in Battleground Oil Specialty Terminal Company LLC (“BOSTCO”) and a 50% ownership interest in Frontera Brownsville LLC (“Frontera”). BOSTCO is a terminal facility located on the Houston Ship Channel that encompasses approximately 7.1 million barrels of distillate, residual and other black oil product storage. Class A and Class B ownership interests share in cash distributions on a 96.5% and 3.5% basis, respectively. Class B ownership interests do not have voting rights and are not required to make capital investments. Frontera is a terminal facility located in Brownsville, Texas that encompasses approximately 1.7 million barrels of light petroleum product storage, as well as related ancillary facilities. The following table summarizes our investments in unconsolidated affiliates: Percentage of Carrying value ownership (in thousands) June 30, December 31, June 30, December 31, 2018 2017 2018 2017 BOSTCO 42.5 % 42.5 % $ 207,627 $ 209,373 Frontera 50 % 50 % 24,140 23,808 Total investments in unconsolidated affiliates $ 231,767 $ 233,181 At June 30, 2018 and December 31, 2017, our investment in BOSTCO includes approximately $6.9 million and $7.0 million, respectively, of excess investment related to a one time buy-in fee to acquire our 42.5% interest and capitalization of interest on our investment during the construction of BOSTCO amortized over the useful life of the assets. Excess investment is the amount by which our investment exceeds our proportionate share of the book value of the net assets of the BOSTCO entity. Earnings from investments in unconsolidated affiliates was as follows (in thousands): Three months ended Six months ended June 30, June 30, 2018 2017 2018 2017 BOSTCO $ 1,848 $ 1,275 $ 3,839 $ 2,981 Frontera 596 845 1,494 1,699 Total earnings from investments in unconsolidated affiliates $ 2,444 $ 2,120 $ 5,333 $ 4,680 Additional capital investments in unconsolidated affiliates was as follows (in thousands): Three months ended Six months ended June 30, June 30, 2018 2017 2018 2017 BOSTCO $ — $ 145 $ — $ 145 Frontera 114 — 1,264 2,000 Additional capital investments in unconsolidated affiliates $ 114 $ 145 $ 1,264 $ 2,145 Cash distributions received from unconsolidated affiliates was as follows (in thousands): Three months ended Six months ended June 30, June 30, 2018 2017 2018 2017 BOSTCO $ 3,491 $ 3,319 $ 5,585 $ 6,398 Frontera 1,330 1,227 2,426 2,497 Cash distributions received from unconsolidated affiliates $ 4,821 $ 4,546 $ 8,011 $ 8,895 The summarized financial information of our unconsolidated affiliates is as follows (in thousands): Balance sheets: BOSTCO Frontera June 30, December 31, June 30, December 31, 2018 2017 2018 2017 Current assets $ 20,794 $ 24,976 $ 5,720 $ 5,649 Long-term assets 460,308 469,348 44,613 44,292 Current liabilities (7,590) (17,550) (1,922) (2,147) Long-term liabilities (1,314) — (131) (178) Net assets $ 472,198 $ 476,774 $ 48,280 $ 47,616 Statements of operations: BOSTCO Frontera Three months ended Three months ended June 30, June 30, 2018 2017 2018 2017 Revenue $ 16,908 $ 17,028 $ 6,009 $ 5,198 Expenses (11,515) (13,628) (4,817) (3,508) Net earnings $ 5,393 $ 3,400 $ 1,192 $ 1,690 BOSTCO Frontera Six months ended Six months ended June 30, June 30, 2018 2017 2018 2017 Revenue $ 33,735 $ 33,658 $ 11,921 $ 10,591 Expenses (24,064) (25,866) (8,933) (7,193) Net earnings $ 9,671 $ 7,792 $ 2,988 $ 3,398 |
OTHER ASSETS, NET
OTHER ASSETS, NET | 6 Months Ended |
Jun. 30, 2018 | |
OTHER ASSETS, NET | |
OTHER ASSETS, NET | (9) OTHER ASSETS, NET Other assets, net are as follows (in thousands): June 30, December 31, 2018 2017 Customer relationships, net of accumulated amortization of $3,679 and $2,294, respectively $ 45,751 $ 47,136 Revolving credit facility unamortized deferred issuance costs, net of accumulated amortization of $6,807 and $5,984, respectively 6,364 6,778 Amounts due under long-term terminaling services agreements 439 460 Unrealized gain on derivative instruments — 576 Deposits and other assets 289 288 $ 52,843 $ 55,238 Customer relationships. Other assets, net include certain customer relationships primarily at our West Coast terminals. These customer relationships are being amortized on a straight‑line basis over twenty years. Revolving credit facility unamortized deferred issuance costs. Deferred issuance costs are amortized using the effective interest method over the term of the related revolving credit facility. Amounts due under long‑term terminaling services agreements. We have long‑term terminaling services agreements with certain of our customers that provide for minimum payments that increase at stated amounts over the terms of the respective agreements. We recognize as revenue the minimum payments under the long‑term terminaling services agreements on a straight‑line basis over the terms of the respective agreements. At June 30, 2018 and December 31, 2017, we have recognized revenue in excess of the minimum payments that was due through those respective dates under the long‑term terminaling services agreements resulting in an asset of approximately $0.4 million and $0.5 million, respectively. |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 6 Months Ended |
Jun. 30, 2018 | |
ACCRUED LIABILITIES | |
ACCRUED LIABILITIES | (10) ACCRUED LIABILITIES Accrued liabilities are as follows (in thousands): June 30, December 31, 2018 2017 Customer advances and deposits $ 8,540 $ 10,265 Accrued property taxes 4,277 1,381 Accrued environmental obligations 1,836 1,855 Interest payable 7,960 982 Accrued expenses and other 4,063 2,943 $ 26,676 $ 17,426 Customer advances and deposits. We bill certain of our customers one month in advance for terminaling services to be provided in the following month. At June 30, 2018, approximately $0.4 million of the customer advances and deposits balance is considered contract liabilities under ASC 606. Revenue recognized during the six months ended June 30, 2018 from amounts included in contract liabilities at the beginning of the period was approximately $0.5 million. At June 30, 2018 and December 31, 2017, we have billed and collected from certain of our customers approximately $8.5 million and $10.3 million, respectively, in advance of the terminaling services being provided. Accrued environmental obligations. At both June 30, 2018 and December 31, 2017, we have accrued environmental obligations of approximately $1.8 million and $1.9 million, respectively, representing our best estimate of our remediation obligations. During the six months ended June 30, 2018, we made payments of approximately $0.2 million towards our environmental remediation obligations. During the six months ended June 30, 2018, we increased our estimate of our future environmental remediation costs by approximately $0.2 million. Changes in our estimates of our future environmental remediation obligations may occur as a result of the passage of time and the occurrence of future events. |
OTHER LIABILITIES
OTHER LIABILITIES | 6 Months Ended |
Jun. 30, 2018 | |
OTHER LIABILITIES | |
OTHER LIABILITIES | (11) OTHER LIABILITIES Other liabilities are as follows (in thousands): June 30, December 31, 2018 2017 Advance payments received under long-term terminaling services agreements $ 1,782 $ 1,599 Deferred revenue—ethanol blending fees and other projects 1,755 2,034 $ 3,537 $ 3,633 Advance payments received under long‑term terminaling services agreements. We have long‑term terminaling services agreements with certain of our customers that provide for advance minimum payments. We recognize the advance minimum payments as revenue either on a straight‑line basis over the term of the respective agreements or when services have been provided based on volumes of product distributed. At June 30, 2018 and December 31, 2017, we have received advance minimum payments in excess of revenue recognized under these long‑term terminaling services agreements resulting in a liability of approximately $1.8 million and $1.6 million, respectively. Deferred revenue—ethanol blending fees and other projects. Pursuant to agreements with our customers, we agreed to undertake certain capital projects that primarily pertain to providing ethanol blending functionality at certain of our Southeast terminals. Upon completion of the projects, our customers have paid us amounts that will be recognized as revenue on a straight‑line basis over the remaining term of the agreements. At June 30, 2018 and December 31, 2017, we have unamortized deferred revenue for completed projects of approximately $1.8 million and $2.0 million, respectively. During the six months ended June 30, 2018, we billed customers approximately $0.9 million for completed projects and recognized revenue for completed projects on a straight‑line basis of approximately $1.2 million. During the six months ended June 30, 2017, we recognized revenue for completed projects on a straight-line basis of approximately $0.3 million. At June 30, 2018, approximately $nil of the deferred revenue-ethanol blending fees and other projects balance is considered contract liabilities under ASC 606. Revenue recognized during the six months ended June 30, 2018 from amounts included in contract liabilities under ASC 606 at the beginning of the period was approximately $0.2 million. |
LONG-TERM DEBT
LONG-TERM DEBT | 6 Months Ended |
Jun. 30, 2018 | |
LONG-TERM DEBT | |
LONG-TERM DEBT | (12) LONG‑TERM DEBT Long-term debt is as follows (in thousands): June 30, December 31, 2018 2017 Revolving credit facility due in 2022 $ 286,300 $ 593,200 6.125% senior notes due in 2026 300,000 — Senior notes unamortized deferred issuance costs, net of accumulated amortization of $301 and $nil, respectively (7,777) — $ 578,523 $ 593,200 On February 12, 2018, the Partnership and TLP Finance Corp., our wholly owned subsidiary, completed the sale of $300 million of 6.125% senior notes, issued at par and due 2026. The senior notes were guaranteed on a senior unsecured basis by each of our 100% owned domestic subsidiaries that guarantee obligations under our revolving credit facility. Net proceeds after $8.1 million of issuance costs, were used to repay indebtedness under our revolving credit facility. Our senior secured revolving credit facility, or our “revolving credit facility”, provides for a maximum borrowing line of credit equal to $850 million. The terms of our revolving credit facility include covenants that restrict our ability to make cash distributions, acquisitions and investments, including investments in joint ventures. We may make distributions of cash to the extent of our “available cash” as defined in our partnership agreement. We may make acquisitions and investments that meet the definition of “permitted acquisitions”; “other investments” which may not exceed 5% of “consolidated net tangible assets”; and additional future “permitted JV investments” up to $175 million, which may include additional investments in BOSTCO. The primary financial covenants contained in our revolving credit facility are (i) a total leverage ratio test (not to exceed 5.25 to 1.0), (ii) a senior secured leverage ratio test (not to exceed 3.75 to 1.0), and (iii) a minimum interest coverage ratio test (not less than 2.75 to 1.0). The principal balance of loans and any accrued and unpaid interest are due and payable in full on the maturity date in March 2022. We were in compliance with all financial covenants as of and during the six months ended June 30, 2018 and the year ended December 31, 2017. We may elect to have loans under our revolving credit facility bear interest either (i) at a rate of LIBOR plus a margin ranging from 1.75% to 2.75% depending on the total leverage ratio then in effect, or (ii) at the base rate plus a margin ranging from 0.75% to 1.75% depending on the total leverage ratio then in effect. We also pay a commitment fee on the unused amount of commitments, ranging from 0.375% to 0.5% per annum, depending on the total leverage ratio then in effect. Our obligations under our revolving credit facility are secured by a first priority security interest in favor of the lenders in the majority of our assets, including our investments in unconsolidated affiliates. For the six months ended June 30, 2018 and 2017, the weighted average interest rate on borrowings under our revolving credit facility was approximately 4.7% and 3.4%, respectively. At June 30, 2018 and December 31, 2017, our outstanding borrowings under our revolving credit facility were $286.3 million and $593.2 million, respectively. At both June 30, 2018 and December 31, 2017 our outstanding letters of credit were $0.4 million. We have an effective universal shelf‑registration statement and prospectus on Form S‑3 with the Securities and Exchange Commission (“SEC”) that expires in September 2019. In February 2018, w e and TLP Finance Corp., our 100% owned subsidiary, used the shelf registration statement to issue senior notes that were guaranteed on a senior unsecured basis by each of our 100% owned domestic subsidiaries that guarantee obligations under our revolving credit facility. In the future, we may issue additional debt or equity securities pursuant to that registration statement. TransMontaigne Partners L.P. has no independent assets or operations unrelated to its investments in its consolidated subsidiaries . TLP Finance Corp. has no assets or operations. Our operations are conducted by subsidiaries of TransMontaigne Partners L.P. through our 100% owned operating company subsidiary, TransMontaigne Operating Company L.P. Each of TransMontaigne Operating Company L.P.s’ and our other 100% owned domestic subsidiaries (other than TLP Finance Corp., whose sole purpose is to act as co‑issuer of any debt securities) may guarantee any future debt securities we issue. We expect that any guarantees associated with future debt securities will be full and unconditional and joint and several, subject to certain automatic customary releases, including sale, disposition, or transfer of the capital stock or substantially all of the assets of a subsidiary guarantor, exercise of legal defeasance option or covenant defeasance option, and designation of a subsidiary guarantor as unrestricted in accordance with the indenture. There are no significant restrictions on the ability of TransMontaigne Partners L.P. or any guarantor to obtain funds from its subsidiaries by dividend or loan. None of the assets of TransMontaigne Partners L.P. or a guarantor represent restricted net assets pursuant to the guidelines established by the SEC. |
PARTNERS' EQUITY
PARTNERS' EQUITY | 6 Months Ended |
Jun. 30, 2018 | |
PARTNERS' EQUITY | |
PARTNERS' EQUITY | (13) PARTNERS’ EQUITY The number of units outstanding is as follows: General Common partner units equivalent units Units outstanding at December 31, 2017 16,177,353 330,150 Issuance of common units pursuant to our savings and retention program 44,798 — Contribution of cash by TransMontaigne GP to maintain its 2% general partner interest — 905 Units outstanding at June 30, 2018 16,222,151 331,055 |
EQUITY-BASED COMPENSATION
EQUITY-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2018 | |
EQUITY-BASED COMPENSATION | |
EQUITY-BASED COMPENSATION | (14) EQUITY-BASED COMPENSATION Long-term incentive plan. The TLP Management Services long-term incentive plan reserves 750,000 common units to be granted as awards under the plan, with such amount subject to adjustment as provided for under the terms of the plan if there is a change in our common units, such as a unit split or other reorganization. The common units authorized to be granted under the TLP Management Services long-term incentive plan are registered pursuant to a registration statement on Form S-8. The TLP Management Services long‑term incentive plan is administered by the compensation committee of the board of directors of our general partner and is used for grants of units to the independent directors of our general partner. The grants to the independent directors of our general partner under the TLP Management Services long-term incentive plan are immediately vested and not subject to forfeiture. Accordingly, there are no long-term incentive plan grants outstanding as of June 30, 2018. Generally accepted accounting principles require us to measure the cost of board member services received in exchange for an award of equity instruments based on the grant‑date fair value of the award. That cost is recognized over the vesting period on a straight line basis during which a board member is required to provide services in exchange for the award with the costs being accelerated upon the occurrence of accelerated vesting events, such as a change in control of our general partner. For awards to the independent directors of our general partner, equity-based compensation of approximately $140,000 is included in equity-based compensation expense for both the six months ended June 30, 2018 and 2017. Savings and retention program. TLP Management Services savings and retention program is intended to constitute a program under, and be subject to, the TLP Management Services long-term incentive plan described above. The savings and retention program is used for awards to employees of TLP Management Services who provide services to the Partnership. The restricted phantom units awarded and accrued under the savings and retention program are subject to forfeiture until the vesting date. Recipients have distribution equivalent rights from the date of grant that accrue additional restricted phantom units equivalent to the value of quarterly distributions paid by us on each of our outstanding common units. Recipients of restricted phantom units under the savings and retention program do not have voting rights. The purpose of the savings and retention program is to provide for the reward and retention of participants by providing them with bonus awards that vest over future service periods. Awards under the program generally become vested as to 50% of a participant’s annual award as of the first day of the month that falls closest to the second anniversary of the grant date, and the remaining 50% as of the first day of the month that falls closest to the third anniversary of the grant date, subject to earlier vesting upon a participant’s attainment of the age and length of service thresholds, retirement, death or disability, involuntary termination without cause, or termination of a participant’s employment following a change in control of the Partnership, our general partner or TLP Management Services, as specified in the program. A person will satisfy the age and length of service thresholds of the program upon the attainment of the earliest of (a) age sixty, (b) age fifty five and ten years of service as an officer of TLP Management Services or any of its affiliates or predecessors, or (c) age fifty and twenty years of service as an employee of TLP Management Services or any of its affiliates or predecessors. Under the omnibus agreement we have agreed to reimburse the owner of TransMontaigne GP for bonus awards made to key employees under the savings and retention program, provided the compensation committee and the conflicts committee of our general partner approve the annual awards granted under the program (see Note 2 of Notes to consolidated financial statements). We have the option to provide the reimbursement in either a cash payment or the delivery of our common units to the savings and retention program or alternatively directly to the award recipients, with the reimbursement made in accordance with the underlying vesting and payment schedule of the savings and retention program. Our reimbursement for the bonus awards is reduced for forfeitures and is increased for the value of quarterly distributions accrued under the distribution equivalent rights. We have the intent and ability to settle our reimbursement for the bonus awards in our common units, and accordingly, we account for the bonus awards as an equity award. Given that we do not have any employees to provide corporate and support services and instead we contract for such services under the omnibus agreement, generally accepted accounting principles require us to classify the savings and retention program awards as a non-employee award and measure the cost of services received in exchange for an award of equity instruments based on the vesting‑date fair value of the award. That cost, or an estimate of that cost in the case of unvested restricted phantom units, is recognized over the period during which services are provided in exchange for the award. As of June 30, 2018, there was approximately $1.9 million of total unrecognized equity-based compensation expense related to unvested restricted phantom units, which is expected to be recognized over the remaining weighted average period of 1.73 years. For bonus awards to employees of TLP Management Services, approximately $2.3 million and $2.0 million is included in equity-based compensation expense for the six months ended June 30, 2018 and 2017, respectively. Activity related to our equity-based awards granted under the savings and retention program for services performed under the omnibus agreement for the six months ended June 30, 2018 is as follows: Weighted Weighted average average Vested price Unvested price Restricted phantom units outstanding at December 31, 2017 91,877 $ 38.91 54,244 $ 38.81 Issuance of units (44,798) $ 37.75 — $ — Units withheld for settlement of withholding taxes (16,822) $ 37.59 — $ — Unit accrual for distributions paid 3,371 $ 37.53 2,447 $ 37.56 Vesting of units 18,970 $ 36.61 (18,970) $ 36.61 Grant of units 46,362 $ 35.23 33,097 $ 35.23 Forfeiture of units — $ — (809) $ 35.23 Restricted phantom units outstanding at June 30, 2018 98,960 $ 38.52 70,009 $ 38.22 Vested and expected to vest at June 30, 2018 168,969 $ 38.40 |
NET EARNINGS PER LIMITED PARTNE
NET EARNINGS PER LIMITED PARTNER UNIT | 6 Months Ended |
Jun. 30, 2018 | |
NET EARNINGS PER LIMITED PARTNER UNIT | |
NET EARNINGS PER LIMITED PARTNER UNIT | (15) NET EARNINGS PER LIMITED PARTNER UNIT The following table reconciles net earnings to net earnings allocable to limited partners and sets forth the computation of basic and diluted net earnings per limited partner unit (in thousands, except per unit amounts): Three months ended Six months ended June 30, June 30, 2018 2017 2018 2017 Net earnings $ 9,460 $ 14,478 $ 21,634 $ 27,432 Less: Distributions payable on behalf of incentive distribution rights (3,758) (2,873) (7,353) (5,509) Distributions payable on behalf of general partner interest (263) (244) (522) (483) Earnings allocable to general partner interest less than distributions payable to general partner interest 149 12 237 44 Earnings allocable to general partner interest including incentive distribution rights (3,872) (3,105) (7,638) (5,948) Net earnings allocable to limited partners per the consolidated statements of operations $ 5,588 $ 11,373 $ 13,996 $ 21,484 Basic weighted average units 16,327 16,260 16,310 16,253 Diluted weighted average units 16,356 16,279 16,345 16,271 Net earnings per limited partner unit—basic $ 0.34 $ 0.70 $ 0.86 $ 1.32 Net earnings per limited partner unit—diluted $ 0.34 $ 0.70 $ 0.86 $ 1.32 Pursuant to our partnership agreement we are required to distribute available cash (as defined by our partnership agreement) as of the end of the reporting period. Such distributions are declared within 45 days after period end. The following table sets forth the distribution declared per common unit attributable to the periods indicated: Distribution January 1, 2017 through March 31, 2017 $ 0.725 April 1, 2017 through June 30, 2017 $ 0.740 July 1, 2017 through September 30, 2017 $ 0.755 October 1, 2017 through December 31, 2017 $ 0.770 January 1, 2018 through March 31, 2018 $ 0.785 April 1, 2018 through June 30, 2018 $ 0.795 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2018 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | (16) COMMITMENTS AND CONTINGENCIES Contract commitments. At June 30, 2018, we have contractual commitments of approximately $38.0 million for the supply of services, labor and materials related to capital projects that currently are under development. We expect that these contractual commitments will be paid within the next twelve months. Operating leases. We lease property and equipment under non‑cancelable operating leases. At June 30, 2018, future minimum lease payments under these non‑cancelable operating leases are as follows (in thousands): Years ending December 31: 2018 (remainder of the year) $ 1,534 2019 3,409 2020 2,047 2021 1,929 2022 978 Thereafter 4,276 $ 14,173 Included in the above non‑cancelable operating lease commitments are amounts for property rentals that we have sublet under non‑cancelable sublease agreements or have reimbursement agreements with affiliates, for which we expect to receive minimum rentals of approximately $7.8 million in future periods. Rental expense under operating leases was approximately $0.5 million and $0.9 million for the three months ended June 30, 2018 and 2017, respectively, and $1.0 million and $1.7 million for the six months ended June 30, 2018 and 2017, respectively. Legal proceedings . We are party to various legal, regulatory and other matters arising from the day-to-day operations of our business that may result in claims against us. While the ultimate impact of any proceedings cannot be predicted with certainty, our management believes that the resolution of any of our pending legal proceedings will not have a material adverse effect on our business, financial position, results of operations or cash flows. |
DISCLOSURES ABOUT FAIR VALUE
DISCLOSURES ABOUT FAIR VALUE | 6 Months Ended |
Jun. 30, 2018 | |
DISCLOSURES ABOUT FAIR VALUE | |
DISCLOSURES ABOUT FAIR VALUE | (17) DISCLOSURES ABOUT FAIR VALUE “GAAP” defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. GAAP also establishes a fair value hierarchy that prioritizes the use of higher‑level inputs for valuation techniques used to measure fair value. The three levels of the fair value hierarchy are: (1) Level 1 inputs, which are quoted prices (unadjusted) in active markets for identical assets or liabilities; (2) Level 2 inputs, which are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and (3) Level 3 inputs, which are unobservable inputs for the asset or liability. The fair values of the following financial instruments represent our best estimate of the amounts that would be received to sell those assets or that would be paid to transfer those liabilities in an orderly transaction between market participants at that date. Our fair value measurements maximize the use of observable inputs. However, in situations where there is little, if any, market activity for the asset or liability at the measurement date, the fair value measurement reflects our judgments about the assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances. The following methods and assumptions were used to estimate the fair value of financial instruments at June 30, 2018 and December 31, 2017. Cash equivalents. The carrying amount approximates fair value because of the short‑term maturity of these instruments. The fair value is categorized in Level 1 of the fair value hierarchy. Derivative instruments. The carrying amount of our interest rate swaps was determined using a pricing model based on the LIBOR swap rate and other observable market data. The fair value is categorized in Level 2 of the fair value hierarchy. Debt. The carrying amount of our revolving credit facility debt approximates fair value since borrowings under the facility bear interest at current market interest rates. The carrying value of our publicly traded senior notes approximates fair value as of June 30, 2018 and December 31, 2017. The fair value of our publicly traded senior notes is based on the prices of those senior notes at June 30, 2018 and December 31, 2017. The fair value is categorized in Level 2 of the fair value hierarchy. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 6 Months Ended |
Jun. 30, 2018 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | (18) REVENUE FROM CONTRACTS WITH CUSTOMERS The majority of our terminaling service agreements contain firm commitments for minimum revenue streams and are accounted for in accordance with ASC 840, Leases (“ASC 840 revenue”). The remainder is recognized in accordance with ASC 606, Revenue From Contracts With Customers (“ASC 606 revenue”). The following table provides details of our revenue disaggregated by category of revenue (in thousands): Three months ended Six months ended June 30, June 30, 2018 2018 Terminaling services fees: Firm commitments (ASC 840 revenue) $ 39,149 $ 77,855 Firm commitments (ASC 606 revenue) 3,549 6,976 Total firm commitments revenue 42,698 84,831 Ancillary revenue (ASC 606 revenue) 9,680 20,738 Total terminaling services fees 52,378 105,569 Pipeline transportation fees (ASC 840 revenue) 794 1,663 Management fees (ASC 606 revenue) 2,172 4,556 Total revenue $ 55,344 $ 111,788 The following table includes our estimated revenue associated with our firm commitments under our terminaling services fees which is expected to be recognized as ASC 606 revenue in the specified period related to the future performance obligations as of the end of the reporting period (in thousands): Estimated Future ASC 606 Revenue by Segment Midwest Terminals and Gulf Coast Pipeline Brownsville River Southeast West Coast Terminals System Terminals Terminals Terminals Terminals Total Remainder of 2018 $ 2,060 $ — $ — $ 578 $ — $ 3,040 $ 5,678 2019 721 — — 1,039 — 1,594 3,354 2020 — — — 1,039 — 125 1,164 2021 — — — 519 — — 519 Thereafter — — — — — — — Total estimated ASC 606 revenue $ 2,781 $ — $ — $ 3,175 $ — $ 4,759 $ 10,715 Our ASC 606 revenue, for purposes of the tabular presentation above, excludes estimates of future rate changes due to changes in indices or contractually negotiated rate escalations and is generally limited to contracts that have minimum payment arrangements. The balances include the full amount of our customer commitments accounted for as ASC 606 revenue as of June 30, 2018 through the expiration of the related contracts. The balances disclosed exclude all performance obligations for which the original expected term is one year or less, the term of the contract with the customer is open and cannot be estimated, the contract includes options for future purchases or the consideration is variable. Estimated revenue in the table above excludes revenue arrangements accounted for in accordance with ASC 840 in the amount of $77.3 million for the remainder of 2018, $124.2 million for 2019, $103.3 million for 2020, $78.5 million for 2021 and $59.9 million thereafter. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 6 Months Ended |
Jun. 30, 2018 | |
BUSINESS SEGMENTS | |
BUSINESS SEGMENTS | (19) BUSINESS SEGMENTS We provide integrated terminaling, storage, transportation and related services to companies engaged in the trading, distribution and marketing of refined petroleum products, crude oil, chemicals, fertilizers and other liquid products. Our chief operating decision maker is our general partner’s chief executive officer. Our general partner’s chief executive officer reviews the financial performance of our business segments using disaggregated financial information about “net margins” for purposes of making operating decisions and assessing financial performance. “Net margins” is composed of revenue less direct operating costs and expenses. Accordingly, we present “net margins” for each of our business segments: (i) Gulf Coast terminals, (ii) Midwest terminals and pipeline system, (iii) Brownsville terminals, (iv) River terminals, (v) Southeast terminals and (vi) West Coast terminals. The financial performance of our business segments is as follows (in thousands): Three months ended Six months ended June 30, June 30, 2018 2017 2018 2017 Gulf Coast Terminals: Terminaling services fees $ 16,465 $ 15,533 $ 32,638 $ 31,540 Management fees 86 263 183 546 Revenue 16,551 15,796 32,821 32,086 Direct operating costs and expenses (5,413) (5,426) (11,245) (10,980) Net margins 11,138 10,370 21,576 21,106 Midwest Terminals and Pipeline System: Terminaling services fees 2,405 2,465 4,824 4,868 Pipeline transportation fees 433 433 866 866 Revenue 2,838 2,898 5,690 5,734 Direct operating costs and expenses (743) (693) (1,455) (1,405) Net margins 2,095 2,205 4,235 4,329 Brownsville Terminals: Terminaling services fees 1,977 2,505 4,043 4,972 Pipeline transportation fees 361 1,363 797 2,646 Management fees 1,892 1,614 3,996 3,538 Revenue 4,230 5,482 8,836 11,156 Direct operating costs and expenses (2,135) (2,582) (4,176) (5,454) Net margins 2,095 2,900 4,660 5,702 River Terminals: Terminaling services fees 2,589 2,740 5,343 5,410 Revenue 2,589 2,740 5,343 5,410 Direct operating costs and expenses (1,805) (1,535) (3,641) (3,185) Net margins 784 1,205 1,702 2,225 Southeast Terminals: Terminaling services fees 19,510 18,263 39,749 35,460 Management fees 194 185 377 368 Revenue 19,704 18,448 40,126 35,828 Direct operating costs and expenses (5,714) (5,748) (12,333) (11,471) Net margins 13,990 12,700 27,793 24,357 West Coast Terminals: Terminaling services fees 9,432 — 18,972 — Revenue 9,432 — 18,972 — Direct operating costs and expenses (3,465) — (6,570) — Net margins 5,967 — 12,402 — Total net margins 36,069 29,380 72,368 57,719 General and administrative expenses (4,619) (4,080) (9,600) (8,051) Insurance expenses (1,271) (1,002) (2,517) (2,008) Equity-based compensation expense (441) (352) (2,458) (2,169) Depreciation and amortization (13,160) (8,792) (24,968) (17,497) Earnings from unconsolidated affiliates 2,444 2,120 5,333 4,680 Operating income 19,022 17,274 38,158 32,674 Other expenses (9,562) (2,796) (16,524) (5,242) Net earnings $ 9,460 $ 14,478 $ 21,634 $ 27,432 Supplemental information about our business segments is summarized below (in thousands): Three months ended June 30, 2018 Midwest Terminals and Gulf Coast Pipeline Brownsville River Southeast West Coast Terminals System Terminals Terminals Terminals Terminals Total Revenue: External customers $ 14,480 $ 2,838 $ 2,336 $ 2,589 $ 19,704 $ 9,432 $ 51,379 Frontera — — 1,894 — — — 1,894 Associated Asphalt, LLC 2,071 — — — — — 2,071 Revenue $ 16,551 $ 2,838 $ 4,230 $ 2,589 $ 19,704 $ 9,432 $ 55,344 Capital expenditures $ 1,814 $ 35 $ 2,024 $ 345 $ 9,152 $ 2,082 $ 15,452 Identifiable assets $ 122,011 $ 20,488 $ 42,507 $ 48,710 $ 221,539 $ 274,479 $ 729,734 Cash and cash equivalents 390 Investments in unconsolidated affiliates 231,767 Deferred issuance costs 6,364 Other 6,567 Total assets $ 974,822 Three months ended June 30, 2017 Midwest Terminals and Gulf Coast Pipeline Brownsville River Southeast West Coast Terminals System Terminals Terminals Terminals Terminals Total Revenue: External customers $ 15,796 $ 2,898 $ 3,968 $ 2,740 $ 18,448 $ — $ 43,850 Frontera — — 1,514 — — — 1,514 Revenue $ 15,796 $ 2,898 $ 5,482 $ 2,740 $ 18,448 $ — $ 45,364 Capital expenditures $ 1,059 $ 45 $ 228 $ 652 $ 17,161 $ — $ 19,145 Six months ended June 30, 2018 Midwest Terminals and Gulf Coast Pipeline Brownsville River Southeast West Coast Terminals System Terminals Terminals Terminals Terminals Total Revenue: External customers $ 28,538 $ 5,690 $ 4,824 $ 5,343 $ 40,126 $ 18,972 $ 103,493 Frontera — — 4,012 — — — 4,012 Associated Asphalt, LLC 4,283 — — — — — 4,283 Revenue $ 32,821 $ 5,690 $ 8,836 $ 5,343 $ 40,126 $ 18,972 $ 111,788 Capital expenditures $ 3,180 $ 336 $ 2,467 $ 892 $ 12,435 $ 2,645 $ 21,955 Six months ended June 30, 2017 Midwest Terminals and Gulf Coast Pipeline Brownsville River Southeast West Coast Terminals System Terminals Terminals Terminals Terminals Total Revenue: External customers $ 32,086 $ 5,734 $ 7,872 $ 5,410 $ 35,828 $ — $ 86,930 Frontera — — 3,284 — — — 3,284 Revenue $ 32,086 $ 5,734 $ 11,156 $ 5,410 $ 35,828 $ — $ 90,214 Capital expenditures $ 2,586 $ 267 $ 372 $ 1,046 $ 24,374 $ — $ 28,645 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2018 | |
SUBSEQUENT EVENTS. | |
SUBSEQUENT EVENTS | (20) SUBSEQUENT EVENTS ArcLight buyout offer. On July 9, 2018 the board of directors of TransMontaigne GP L.L.C. received a non-binding proposal from affiliates of ArcLight, directed to the conflicts committee of our general partner, pursuant to which ArcLight would acquire through a subsidiary all common units of the Partnership that ArcLight and its affiliates do not already own in exchange for $38.00 per common unit. If approved, the transaction would be effected through a merger of the Partnership with a subsidiary of ArcLight. The transaction, as proposed, is subject to a number of contingencies, including ArcLight’s completion of due diligence, the approval of the conflicts committee, the approval by holders of a majority of the outstanding common units of the Partnership and the satisfaction of any conditions to the consummation of a transaction set forth in any definitive agreement concerning the transaction. There can be no assurance that definitive documentation will be executed or that any transaction will materialize. Quarterly distribution. On July 17, 2018, we announced a distribution of $0.795 per unit for the period from April 1, 2018 through June 30, 2018. This distribution was paid on August 8, 2018 to unitholders of record on July 31, 2018. |
SUMMARY OF SIGNIFICANT ACCOUN28
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Nature of business | (a) Nature of business TransMontaigne Partners L.P. (“we,” “us,” “our,” “the Partnership”) was formed in February 2005 as a Delaware limited partnership. We provide integrated terminaling, storage, transportation and related services for companies engaged in the trading, distribution and marketing of light refined petroleum products, heavy refined petroleum products, crude oil, chemicals, fertilizers and other liquid products. We conduct our operations in the United States along the Gulf Coast, in the Midwest, in Houston and Brownsville, Texas, along the Mississippi and Ohio rivers, in the Southeast and along the West Coast. We are controlled by our general partner, TransMontaigne GP L.L.C. (“TransMontaigne GP”), which as of February 1, 2016 is a wholly‑owned indirect subsidiary of ArcLight Energy Partners Fund VI, L.P. (“ArcLight”). |
Basis of presentation and use of estimates | (b) Basis of presentation and use of estimates Our accounting and financial reporting policies conform to accounting principles generally accepted in the United States of America (“GAAP”). The accompanying consolidated financial statements include the accounts of TransMontaigne Partners L.P. and its controlled subsidiaries. Investments where we do not have the ability to exercise control, but do have the ability to exercise significant influence, are accounted for using the equity method of accounting. All inter‑company accounts and transactions have been eliminated in the preparation of the accompanying consolidated financial statements. The accompanying consolidated financial statements include all adjustments (consisting of normal and recurring accruals) considered necessary to present fairly our financial position as of June 30, 2018 and December 31, 2017 and our results of operations for the three and six months ended June 30, 2018 and 2017. Certain reclassifications of previously reported amounts have been made to conform to the current year presentation. The preparation of financial statements in conformity with “GAAP” requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. The following estimates, in management’s opinion, are subjective in nature, require the exercise of judgment, and/or involve complex analyses: business combination estimates and assumptions, useful lives of our plant and equipment and accrued environmental obligations. Changes in these estimates and assumptions will occur as a result of the passage of time and the occurrence of future events. Actual results could differ from these estimates. |
Accounting for terminal and pipeline operations | (c) Accounting for terminal and pipeline operations Effective January 1, 2018, we adopted Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”), applying the modified retrospective transition method, which required us to apply the new standard to (i) all new revenue contracts entered into after January 1, 2018, and (ii) revenue contracts which were not completed as of January 1, 2018. ASC 606 replaces existing revenue recognition requirements in GAAP and requires entities to recognize revenue at an amount that reflects the consideration to which we expect to be entitled in exchange for transferring goods or services to a customer. ASC 606 also requires certain disclosures regarding qualitative and quantitative information regarding the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The adoption of ASC 606 did not result in a transition adjustment nor did it have an impact on the timing or amount of our revenue recognition (See Note 18 of Notes to consolidated financial statements). The adoption of ASC 606 did not result in changes to our accounting for trade accounts receivable (see Note 4 of Notes to consolidated financial statements), contract assets or contract liabilities. We recognize contract assets in situations where revenue recognition under ASC 606 occurs prior to billing the customer based on our rights under the contract. Contract assets are transferred to accounts receivable when the rights become unconditional. At June 30, 2018, we did not have any contract assets related to ASC 606. Contract liabilities primarily relate to consideration received from customers in advance of completing the performance obligation. A performance obligation is a promise in a contract to transfer goods or services to the customer. We recognize contract liabilities under these arrangements as revenue once all contingencies or potential performance obligations have been satisfied by the (i) performance of services or (ii) expiration of the customer’s rights under the contract. Short-term contract liabilities include customer advances and deposits (see Note 10 of Notes to consolidated financial statements). Long-term contract liabilities include deferred revenue related to ethanol blending fees and other projects (See Note 11 of Notes to consolidated financial statements). We generate revenue from terminaling services fees, pipeline transportation fees and management fees. Under ASC 606, we recognize revenue over time or at a point in time, depending on the nature of the performance obligations contained in the respective contract with our customer. The contract transaction price is allocated to each performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of our revenue is recognized pursuant to ASC guidance other than ASC 606. The following is an overview of our significant revenue streams, including a description of the respective performance obligations and related method of revenue recognition. Terminaling services fees. Our terminaling services agreements are structured as either throughput agreements or storage agreements. Our throughput agreements contain provisions that require our customers to make minimum payments, which are based on contractually established minimum volumes of throughput of the customer’s product at our facilities, over a stipulated period of time. Due to this minimum payment arrangement, we recognize a fixed amount of revenue from the customer over a certain period of time, even if the customer throughputs less than the minimum volume of product during that period. In addition, if a customer throughputs a volume of product exceeding the minimum volume, we would recognize additional revenue on this incremental volume. Our storage agreements require our customers to make minimum payments based on the volume of storage capacity available to the customer under the agreement, which results in a fixed amount of recognized revenue. We refer to the fixed amount of revenue recognized pursuant to our terminaling services agreements as being “firm commitments.” The majority of our firm commitments under our terminaling services agreements are accounted for in accordance with ASC 840, Leases (“ASC 840 revenue”). The remainder is recognized in accordance with ASC 606 (“ASC 606 revenue”) where the minimum payment arrangement in each contract is a single performance obligation that is primarily satisfied over time through the contract term. Revenue recognized in excess of firm commitments and revenue recognized based solely on the volume of product distributed or injected are referred to as ancillary. The ancillary revenue associated with terminaling services include volumes of product throughput that exceed the contractually established minimum volumes, injection fees based on the volume of product injected with additive compounds, heating and mixing of stored products, product transfer, railcar handling, butane blending, proceeds from the sale of product gains, wharfage and vapor recovery. The revenue generated by these services is primarily considered optional purchases to acquire additional services or variable consideration that is required to be estimated under ASC 606 for any uncertainty that is not resolved in the period of the service. We account for the majority of ancillary revenue at individual points in time when the services are delivered to the customer. Our ancillary revenue is recognized in accordance with ASC 606. Pipeline transportation fees. We earn pipeline transportation fees at our Diamondback pipeline either based on the volume of product transported or under capacity reservation agreements. Revenue associated with the capacity reservation is recognized ratably over the respective term, regardless of whether the capacity is actually utilized. We earn pipeline transportation fees at our Razorback pipeline based on an allocation of the aggregate fees charged under the capacity agreement with our customer who has contracted for 100% of our Razorback system. For the six months ended June 30, 2018, pipeline transportation revenue is primarily accounted for in accordance with ASC 840. Management fees. We manage and operate certain tank capacity at our Port Everglades South terminal for a major oil company and receive a reimbursement of its proportionate share of operating and maintenance costs. We manage and operate the Frontera joint venture and receive a management fee based on our costs incurred. We also currently manage and operate for an affiliate of PEMEX, Mexico’s state-owned petroleum company, a bi-directional products pipeline connected to our Brownsville terminal facility and receive a management fee. We manage and operate rail sites at certain Southeast terminals on behalf of a major oil company and receive reimbursement for operating and maintenance costs. Management fee revenue is recognized at individual points in time as the services are performed or as the costs are incurred and is primarily accounted for in accordance with ASC 606. |
Cash and cash equivalents | (d) Cash and cash equivalents We consider all short‑term investments with a remaining maturity of three months or less at the date of purchase to be cash equivalents. |
Property, plant and equipment | (e) Property, plant and equipment Depreciation is computed using the straight‑line method. Estimated useful lives are 15 to 25 years for terminals and pipelines and 3 to 25 years for furniture, fixtures and equipment. All items of property, plant and equipment are carried at cost. Expenditures that increase capacity or extend useful lives are capitalized. Repairs and maintenance are expensed as incurred. We evaluate long‑lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset group may not be recoverable based on expected undiscounted future cash flows attributable to that asset group. If an asset group is impaired, the impairment loss to be recognized is the excess of the carrying amount of the asset group over its estimated fair value. |
Investments in unconsolidated affiliates | (f) Investments in unconsolidated affiliates We account for our investments in unconsolidated affiliates, which we do not control but do have the ability to exercise significant influence over, using the equity method of accounting. Under this method, the investment is recorded at acquisition cost, increased by our proportionate share of any earnings and additional capital contributions and decreased by our proportionate share of any losses, distributions received and amortization of any excess investment. Excess investment is the amount by which our total investment exceeds our proportionate share of the book value of the net assets of the investment entity. We evaluate our investments in unconsolidated affiliates for impairment whenever events or circumstances indicate there is a loss in value of the investment that is other than temporary. In the event of impairment, we would record a charge to earnings to adjust the carrying amount to estimated fair value. |
Environmental obligations | (g) Environmental obligations We accrue for environmental costs that relate to existing conditions caused by past operations when probable and reasonably estimable (see Note 10 of Notes to consolidated financial statements). Environmental costs include initial site surveys and environmental studies of potentially contaminated sites, costs for remediation and restoration of sites determined to be contaminated and ongoing monitoring costs, as well as fines, damages and other costs, including direct legal costs. Liabilities for environmental costs at a specific site are initially recorded, on an undiscounted basis, when it is probable that we will be liable for such costs, and a reasonable estimate of the associated costs can be made based on available information. Such an estimate includes our share of the liability for each specific site and the sharing of the amounts related to each site that will not be paid by other potentially responsible parties, based on enacted laws and adopted regulations and policies. Adjustments to initial estimates are recorded, from time to time, to reflect changing circumstances and estimates based upon additional information developed in subsequent periods. Estimates of our ultimate liabilities associated with environmental costs are difficult to make with certainty due to the number of variables involved, including the early stage of investigation at certain sites, the lengthy time frames required to complete remediation, technology changes, alternatives available and the evolving nature of environmental laws and regulations. We periodically file claims for insurance recoveries of certain environmental remediation costs with our insurance carriers under our comprehensive liability policies (see Note 5 of Notes to consolidated financial statements). We recognize our insurance recoveries as a credit to income in the period that we assess the likelihood of recovery as being probable. In connection with our previous acquisitions of certain terminals from TransMontaigne LLC, a wholly owned subsidiary of NGL Energy Partners LP and the previous owner of our general partner, TransMontaigne LLC agreed to indemnify us against certain potential environmental claims, losses and expenses at those terminals. Pursuant to the acquisition agreements for each of the Florida (except Pensacola) and Midwest terminals, the Southeast terminals, the Brownsville and the River terminals, and the Pensacola, Florida Terminal, TransMontaigne LLC is obligated to indemnify us against environmental claims, losses and expenses that were associated with the ownership or operation of the terminals prior to the purchase by the Partnership. In each acquisition agreement, TransMontaigne LLC’s maximum indemnification liability is subject to a specified time period for indemnification, cap on indemnification and satisfaction of a deductible amount before indemnification, in each case subject to certain exceptions, limitations and conditions specified therein. TransMontaigne LLC has no indemnification obligations with respect to environmental claims made as a result of additions to or modifications of environmental laws promulgated after certain specified dates. The environmental indemnification obligations of TransMontaigne LLC to us remain in place and were not affected by ArcLight’s acquisition of our general partner on February 1, 2016. |
Asset retirement obligations | (h) Asset retirement obligations Asset retirement obligations are legal obligations associated with the retirement of long‑lived assets that result from the acquisition, construction, development or normal use of the asset. Generally accepted accounting principles require that the fair value of a liability related to the retirement of long‑lived assets be recorded at the time a legal obligation is incurred. Once an asset retirement obligation is identified and a liability is recorded, a corresponding asset is recorded, which is depreciated over the remaining useful life of the asset. After the initial measurement, the liability is adjusted to reflect changes in the asset retirement obligation. If and when it is determined that a legal obligation has been incurred, the fair value of any liability is determined based on estimates and assumptions related to retirement costs, future inflation rates and interest rates. Our long‑lived assets consist of above‑ground storage facilities and underground pipelines. We are unable to predict if and when these long‑lived assets will become completely obsolete and require dismantlement. We have not recorded an asset retirement obligation, or corresponding asset, because the future dismantlement and removal dates of our long‑lived assets is indeterminable and the amount of any associated costs are believed to be insignificant. Changes in our assumptions and estimates may occur as a result of the passage of time and the occurrence of future events. |
Equity based compensation | (i) Equity-based compensation Generally accepted accounting principles require us to measure the cost of services received in exchange for an award of equity instruments based on the measurement‑date fair value of the award. That cost is recognized during the period services are provided in exchange for the award (see Note 14 of Notes to consolidated financial statements). |
Accounting for derivative instruments | (j) Accounting for derivative instruments Generally accepted accounting principles require us to recognize all derivative instruments at fair value in the consolidated balance sheets as assets or liabilities (see Notes 5 and 9 of Notes to consolidated financial statements). Changes in the fair value of our derivative instruments are recognized in earnings. At June 30, 2018 and December 31, 2017, our derivative instruments were limited to interest rate swap agreements with an aggregate notional amount of $50.0 million and $125.0 million, respectively. At June 30, 2018 the remaining derivative instrument expires March 11, 2019. Pursuant to the terms of the interest rate swap agreements, we paid a blended fixed rate of approximately 0.97% and 1.01% for the six months ended June 30, 2018 and the year ended December 31, 2017, respectively, and received interest payments based on the one-month LIBOR. The net difference to be paid or received under the interest rate swap agreements is settled monthly and is recognized as an adjustment to interest expense. The fair value of our interest rate swap agreements are determined using a pricing model based on the LIBOR swap rate and other observable market data. |
Income taxes | (k) Income taxes No provision for U.S. federal income taxes has been reflected in the accompanying consolidated financial statements because we are treated as a partnership for federal income tax purposes. As a partnership, all income, gains, losses, expenses, deductions and tax credits generated by us flow through to our unitholders. |
Net earnings per limited partner unit | (l) Net earnings per limited partner unit Net earnings allocable to the limited partners, for purposes of calculating net earnings per limited partner unit, are calculated under the two-class method and accordingly are net of the earnings allocable to the general partner interest and distributions payable to any restricted phantom units granted under our equity-based compensation plans that participate in our distributions. The earnings allocable to the general partner interest include the distributions of available cash (as defined by our partnership agreement) attributable to the period to the general partner interest, net of adjustments for the general partner’s share of undistributed earnings, and the incentive distribution rights. Undistributed earnings are the difference between the earnings and the distributions attributable to the period. Undistributed earnings are allocated to the limited partners and general partner interest based on their respective sharing of earnings or losses specified in the partnership agreement, which is based on their ownership percentages of 98% and 2%, respectively. The incentive distribution rights are not allocated a portion of the undistributed earnings given they are not entitled to distributions other than from available cash. Further, the incentive distribution rights do not share in losses under our partnership agreement. Basic net earnings per limited partner unit is computed by dividing net earnings allocable to the limited partners by the weighted average number of limited partner units outstanding during the period. Diluted net earnings per limited partner unit is computed by dividing net earnings allocable to the limited partners by the weighted average number of limited partner units outstanding during the period and any potential dilutive securities outstanding during the period. |
Comprehensive Income | (m) Comprehensive income Entities that report items of other comprehensive income have the option to present the components of net earnings and comprehensive income in either one continuous financial statement, or two consecutive financial statements. As the Partnership has no components of comprehensive income other than net earnings, no statement of comprehensive income has been presented. |
Recent accounting pronouncements | (n) Recent accounting pronouncements Effective January 1, 2018 we adopted ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipt and Cash Payments. This ASU requires changes in the presentation of certain items, including but not limited to debt prepayment or debt extinguishment costs; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies and distributions received from equity method investees. The adoption of this ASU did not have a material impact on our unaudited consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases. The objective of this update is to improve financial reporting about leasing transactions. ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. We are currently evaluating the potential impact that the adoption will have on our disclosures and financial statements. Additionally, we are in the process of evaluating and designing the necessary changes to our business processes and controls to support recognition and disclosure under the new standard. As part of our evaluation process we have established an implementation team and are in the process of implementing a third-party supported lease accounting system to facilitate the accounting and financial reporting requirements. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment, to simplify the accounting for goodwill impairment by eliminating step 2 from the goodwill impairment test. ASU 2017-04 is effective for annual reporting periods beginning after December 15, 2019, including interim periods within that reporting period. We are currently evaluating the potential impact that the adoption will have on our disclosures and financial statements. |
BUSINESS COMBINATION AND TERM29
BUSINESS COMBINATION AND TERMINAL ACQUISITION AND DISPOSITION (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
West Coast terminals | |
Schedule of purchase price and assessment of the fair value of the assets acquired and liabilities assumed | The purchase price and final assessment of the fair value of the assets acquired and liabilities assumed in the business combination were as follows (in thousands): Other current assets $ 1,037 Property, plant and equipment 228,000 Goodwill 943 Customer relationships 47,000 Total assets acquired 276,980 Environmental obligation 220 Total liabilities assumed 220 Allocated purchase price $ 276,760 |
CONCENTRATION OF CREDIT RISK 30
CONCENTRATION OF CREDIT RISK AND TRADE ACCOUNTS RECEIVABLE (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
CONCENTRATION OF CREDIT RISK AND TRADE ACCOUNTS RECEIVABLE | |
Schedule of trade accounts receivable, net (in thousands) | Trade accounts receivable, net consists of the following (in thousands): June 30, December 31, 2018 2017 Trade accounts receivable $ 12,458 $ 11,128 Less allowance for doubtful accounts (294) (111) $ 12,164 $ 11,017 |
Schedule of customer who accounted for at least 10% of consolidated revenue | Three months ended Six months ended June 30, June 30, 2018 2017 2018 2017 NGL Energy Partners LP 23 % 27 % 23 % 26 % RaceTrac Petroleum Inc. 12 % 13 % 12 % 12 % Castleton Commodities International LLC 9 % 13 % 10 % 13 % |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
OTHER CURRENT ASSETS | |
Schedule of other current assets (in thousands) | Other current assets are as follows (in thousands): June 30, December 31, 2018 2017 Prepaid insurance $ 2,761 $ 4,151 Amounts due from insurance companies 1,755 1,981 Additive detergent 1,216 1,715 Unrealized gain on derivative instrument 449 — Deposits and other assets 1,797 12,807 $ 7,978 $ 20,654 |
PROPERTY, PLANT AND EQUIPMENT32
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Schedule of property, plant and equipment, net (in thousands) | Property, plant and equipment, net is as follows (in thousands): June 30, December 31, 2018 2017 Land $ 83,451 $ 83,310 Terminals, pipelines and equipment 912,245 885,429 Furniture, fixtures and equipment 4,860 4,430 Construction in progress 19,481 21,575 1,020,037 994,744 Less accumulated depreciation (363,276) (339,691) $ 656,761 $ 655,053 |
GOODWILL (Tables)
GOODWILL (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
GOODWILL | |
Schedule of goodwill (in thousands) | Goodwill is as follows (in thousands): June 30, December 31, 2018 2017 Brownsville terminals $ 8,485 $ 8,485 West Coast terminals 943 943 $ 9,428 $ 9,428 |
INVESTMENTS IN UNCONSOLIDATED34
INVESTMENTS IN UNCONSOLIDATED AFFILIATES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
INVESTMENTS IN UNCONSOLIDATED AFFILIATES | |
Summary of investments in unconsolidated affiliates | The following table summarizes our investments in unconsolidated affiliates: Percentage of Carrying value ownership (in thousands) June 30, December 31, June 30, December 31, 2018 2017 2018 2017 BOSTCO 42.5 % 42.5 % $ 207,627 $ 209,373 Frontera 50 % 50 % 24,140 23,808 Total investments in unconsolidated affiliates $ 231,767 $ 233,181 |
Schedule of earnings from investments in unconsolidated affiliates (in thousands) | Earnings from investments in unconsolidated affiliates was as follows (in thousands): Three months ended Six months ended June 30, June 30, 2018 2017 2018 2017 BOSTCO $ 1,848 $ 1,275 $ 3,839 $ 2,981 Frontera 596 845 1,494 1,699 Total earnings from investments in unconsolidated affiliates $ 2,444 $ 2,120 $ 5,333 $ 4,680 |
Schedule of additional capital investments in unconsolidated affiliates (in thousands) | Additional capital investments in unconsolidated affiliates was as follows (in thousands): Three months ended Six months ended June 30, June 30, 2018 2017 2018 2017 BOSTCO $ — $ 145 $ — $ 145 Frontera 114 — 1,264 2,000 Additional capital investments in unconsolidated affiliates $ 114 $ 145 $ 1,264 $ 2,145 |
Schedule of cash distributions received from unconsolidated affiliates (in thousands) | Cash distributions received from unconsolidated affiliates was as follows (in thousands): Three months ended Six months ended June 30, June 30, 2018 2017 2018 2017 BOSTCO $ 3,491 $ 3,319 $ 5,585 $ 6,398 Frontera 1,330 1,227 2,426 2,497 Cash distributions received from unconsolidated affiliates $ 4,821 $ 4,546 $ 8,011 $ 8,895 |
Summary of financial information of unconsolidated affiliates (in thousands) | The summarized financial information of our unconsolidated affiliates is as follows (in thousands): Balance sheets: BOSTCO Frontera June 30, December 31, June 30, December 31, 2018 2017 2018 2017 Current assets $ 20,794 $ 24,976 $ 5,720 $ 5,649 Long-term assets 460,308 469,348 44,613 44,292 Current liabilities (7,590) (17,550) (1,922) (2,147) Long-term liabilities (1,314) — (131) (178) Net assets $ 472,198 $ 476,774 $ 48,280 $ 47,616 Statements of operations: BOSTCO Frontera Three months ended Three months ended June 30, June 30, 2018 2017 2018 2017 Revenue $ 16,908 $ 17,028 $ 6,009 $ 5,198 Expenses (11,515) (13,628) (4,817) (3,508) Net earnings $ 5,393 $ 3,400 $ 1,192 $ 1,690 BOSTCO Frontera Six months ended Six months ended June 30, June 30, 2018 2017 2018 2017 Revenue $ 33,735 $ 33,658 $ 11,921 $ 10,591 Expenses (24,064) (25,866) (8,933) (7,193) Net earnings $ 9,671 $ 7,792 $ 2,988 $ 3,398 |
OTHER ASSETS, NET (Tables)
OTHER ASSETS, NET (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
OTHER ASSETS, NET | |
Schedule of other assets, net (in thousands) | Other assets, net are as follows (in thousands): June 30, December 31, 2018 2017 Customer relationships, net of accumulated amortization of $3,679 and $2,294, respectively $ 45,751 $ 47,136 Revolving credit facility unamortized deferred issuance costs, net of accumulated amortization of $6,807 and $5,984, respectively 6,364 6,778 Amounts due under long-term terminaling services agreements 439 460 Unrealized gain on derivative instruments — 576 Deposits and other assets 289 288 $ 52,843 $ 55,238 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
ACCRUED LIABILITIES | |
Schedule of accrued liabilities (in thousands) | Accrued liabilities are as follows (in thousands): June 30, December 31, 2018 2017 Customer advances and deposits $ 8,540 $ 10,265 Accrued property taxes 4,277 1,381 Accrued environmental obligations 1,836 1,855 Interest payable 7,960 982 Accrued expenses and other 4,063 2,943 $ 26,676 $ 17,426 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
OTHER LIABILITIES | |
Schedule of other liabilities (in thousands) | Other liabilities are as follows (in thousands): June 30, December 31, 2018 2017 Advance payments received under long-term terminaling services agreements $ 1,782 $ 1,599 Deferred revenue—ethanol blending fees and other projects 1,755 2,034 $ 3,537 $ 3,633 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
LONG-TERM DEBT | |
Summary of long term debt | Long-term debt is as follows (in thousands): June 30, December 31, 2018 2017 Revolving credit facility due in 2022 $ 286,300 $ 593,200 6.125% senior notes due in 2026 300,000 — Senior notes unamortized deferred issuance costs, net of accumulated amortization of $301 and $nil, respectively (7,777) — $ 578,523 $ 593,200 |
PARTNERS' EQUITY (Tables)
PARTNERS' EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
PARTNERS' EQUITY | |
Schedule of number of units outstanding | General Common partner units equivalent units Units outstanding at December 31, 2017 16,177,353 330,150 Issuance of common units pursuant to our savings and retention program 44,798 — Contribution of cash by TransMontaigne GP to maintain its 2% general partner interest — 905 Units outstanding at June 30, 2018 16,222,151 331,055 |
EQUITY-BASED COMPENSATION (Tabl
EQUITY-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
TransMontaigne LLC-related party | |
Schedule of long-term incentive plan activity | Weighted Weighted average average Vested price Unvested price Restricted phantom units outstanding at December 31, 2017 91,877 $ 38.91 54,244 $ 38.81 Issuance of units (44,798) $ 37.75 — $ — Units withheld for settlement of withholding taxes (16,822) $ 37.59 — $ — Unit accrual for distributions paid 3,371 $ 37.53 2,447 $ 37.56 Vesting of units 18,970 $ 36.61 (18,970) $ 36.61 Grant of units 46,362 $ 35.23 33,097 $ 35.23 Forfeiture of units — $ — (809) $ 35.23 Restricted phantom units outstanding at June 30, 2018 98,960 $ 38.52 70,009 $ 38.22 Vested and expected to vest at June 30, 2018 168,969 $ 38.40 |
NET EARNINGS PER LIMITED PART41
NET EARNINGS PER LIMITED PARTNER UNIT (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
NET EARNINGS PER LIMITED PARTNER UNIT | |
Schedule of reconciliation of net earnings to net earnings allocable to limited partners (in thousands) | The following table reconciles net earnings to net earnings allocable to limited partners and sets forth the computation of basic and diluted net earnings per limited partner unit (in thousands, except per unit amounts): Three months ended Six months ended June 30, June 30, 2018 2017 2018 2017 Net earnings $ 9,460 $ 14,478 $ 21,634 $ 27,432 Less: Distributions payable on behalf of incentive distribution rights (3,758) (2,873) (7,353) (5,509) Distributions payable on behalf of general partner interest (263) (244) (522) (483) Earnings allocable to general partner interest less than distributions payable to general partner interest 149 12 237 44 Earnings allocable to general partner interest including incentive distribution rights (3,872) (3,105) (7,638) (5,948) Net earnings allocable to limited partners per the consolidated statements of operations $ 5,588 $ 11,373 $ 13,996 $ 21,484 Basic weighted average units 16,327 16,260 16,310 16,253 Diluted weighted average units 16,356 16,279 16,345 16,271 Net earnings per limited partner unit—basic $ 0.34 $ 0.70 $ 0.86 $ 1.32 Net earnings per limited partner unit—diluted $ 0.34 $ 0.70 $ 0.86 $ 1.32 |
Schedule of distribution declared per common unit attributable to the periods | Distribution January 1, 2017 through March 31, 2017 $ 0.725 April 1, 2017 through June 30, 2017 $ 0.740 July 1, 2017 through September 30, 2017 $ 0.755 October 1, 2017 through December 31, 2017 $ 0.770 January 1, 2018 through March 31, 2018 $ 0.785 April 1, 2018 through June 30, 2018 $ 0.795 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of future minimum lease payments under non-cancelable operating leases (in thousands) | At June 30, 2018, future minimum lease payments under these non‑cancelable operating leases are as follows (in thousands): Years ending December 31: 2018 (remainder of the year) $ 1,534 2019 3,409 2020 2,047 2021 1,929 2022 978 Thereafter 4,276 $ 14,173 |
REVENUE FROM CONTRACTS WITH C43
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Revenue disaggregated by category | The following table provides details of our revenue disaggregated by category of revenue (in thousands): Three months ended Six months ended June 30, June 30, 2018 2018 Terminaling services fees: Firm commitments (ASC 840 revenue) $ 39,149 $ 77,855 Firm commitments (ASC 606 revenue) 3,549 6,976 Total firm commitments revenue 42,698 84,831 Ancillary revenue (ASC 606 revenue) 9,680 20,738 Total terminaling services fees 52,378 105,569 Pipeline transportation fees (ASC 840 revenue) 794 1,663 Management fees (ASC 606 revenue) 2,172 4,556 Total revenue $ 55,344 $ 111,788 |
Schedule of estimated future ASC 606 revenue by segment | Midwest Terminals and Gulf Coast Pipeline Brownsville River Southeast West Coast Terminals System Terminals Terminals Terminals Terminals Total Remainder of 2018 $ 2,060 $ — $ — $ 578 $ — $ 3,040 $ 5,678 2019 721 — — 1,039 — 1,594 3,354 2020 — — — 1,039 — 125 1,164 2021 — — — 519 — — 519 Thereafter — — — — — — — Total estimated ASC 606 revenue $ 2,781 $ — $ — $ 3,175 $ — $ 4,759 $ 10,715 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
BUSINESS SEGMENTS | |
Schedule of information related to financial performance of business segments (in thousands) | The financial performance of our business segments is as follows (in thousands): Three months ended Six months ended June 30, June 30, 2018 2017 2018 2017 Gulf Coast Terminals: Terminaling services fees $ 16,465 $ 15,533 $ 32,638 $ 31,540 Management fees 86 263 183 546 Revenue 16,551 15,796 32,821 32,086 Direct operating costs and expenses (5,413) (5,426) (11,245) (10,980) Net margins 11,138 10,370 21,576 21,106 Midwest Terminals and Pipeline System: Terminaling services fees 2,405 2,465 4,824 4,868 Pipeline transportation fees 433 433 866 866 Revenue 2,838 2,898 5,690 5,734 Direct operating costs and expenses (743) (693) (1,455) (1,405) Net margins 2,095 2,205 4,235 4,329 Brownsville Terminals: Terminaling services fees 1,977 2,505 4,043 4,972 Pipeline transportation fees 361 1,363 797 2,646 Management fees 1,892 1,614 3,996 3,538 Revenue 4,230 5,482 8,836 11,156 Direct operating costs and expenses (2,135) (2,582) (4,176) (5,454) Net margins 2,095 2,900 4,660 5,702 River Terminals: Terminaling services fees 2,589 2,740 5,343 5,410 Revenue 2,589 2,740 5,343 5,410 Direct operating costs and expenses (1,805) (1,535) (3,641) (3,185) Net margins 784 1,205 1,702 2,225 Southeast Terminals: Terminaling services fees 19,510 18,263 39,749 35,460 Management fees 194 185 377 368 Revenue 19,704 18,448 40,126 35,828 Direct operating costs and expenses (5,714) (5,748) (12,333) (11,471) Net margins 13,990 12,700 27,793 24,357 West Coast Terminals: Terminaling services fees 9,432 — 18,972 — Revenue 9,432 — 18,972 — Direct operating costs and expenses (3,465) — (6,570) — Net margins 5,967 — 12,402 — Total net margins 36,069 29,380 72,368 57,719 General and administrative expenses (4,619) (4,080) (9,600) (8,051) Insurance expenses (1,271) (1,002) (2,517) (2,008) Equity-based compensation expense (441) (352) (2,458) (2,169) Depreciation and amortization (13,160) (8,792) (24,968) (17,497) Earnings from unconsolidated affiliates 2,444 2,120 5,333 4,680 Operating income 19,022 17,274 38,158 32,674 Other expenses (9,562) (2,796) (16,524) (5,242) Net earnings $ 9,460 $ 14,478 $ 21,634 $ 27,432 |
Schedule of supplemental information about consolidated business segments (in thousands) | Supplemental information about our business segments is summarized below (in thousands): Three months ended June 30, 2018 Midwest Terminals and Gulf Coast Pipeline Brownsville River Southeast West Coast Terminals System Terminals Terminals Terminals Terminals Total Revenue: External customers $ 14,480 $ 2,838 $ 2,336 $ 2,589 $ 19,704 $ 9,432 $ 51,379 Frontera — — 1,894 — — — 1,894 Associated Asphalt, LLC 2,071 — — — — — 2,071 Revenue $ 16,551 $ 2,838 $ 4,230 $ 2,589 $ 19,704 $ 9,432 $ 55,344 Capital expenditures $ 1,814 $ 35 $ 2,024 $ 345 $ 9,152 $ 2,082 $ 15,452 Identifiable assets $ 122,011 $ 20,488 $ 42,507 $ 48,710 $ 221,539 $ 274,479 $ 729,734 Cash and cash equivalents 390 Investments in unconsolidated affiliates 231,767 Deferred issuance costs 6,364 Other 6,567 Total assets $ 974,822 Three months ended June 30, 2017 Midwest Terminals and Gulf Coast Pipeline Brownsville River Southeast West Coast Terminals System Terminals Terminals Terminals Terminals Total Revenue: External customers $ 15,796 $ 2,898 $ 3,968 $ 2,740 $ 18,448 $ — $ 43,850 Frontera — — 1,514 — — — 1,514 Revenue $ 15,796 $ 2,898 $ 5,482 $ 2,740 $ 18,448 $ — $ 45,364 Capital expenditures $ 1,059 $ 45 $ 228 $ 652 $ 17,161 $ — $ 19,145 Six months ended June 30, 2018 Midwest Terminals and Gulf Coast Pipeline Brownsville River Southeast West Coast Terminals System Terminals Terminals Terminals Terminals Total Revenue: External customers $ 28,538 $ 5,690 $ 4,824 $ 5,343 $ 40,126 $ 18,972 $ 103,493 Frontera — — 4,012 — — — 4,012 Associated Asphalt, LLC 4,283 — — — — — 4,283 Revenue $ 32,821 $ 5,690 $ 8,836 $ 5,343 $ 40,126 $ 18,972 $ 111,788 Capital expenditures $ 3,180 $ 336 $ 2,467 $ 892 $ 12,435 $ 2,645 $ 21,955 Six months ended June 30, 2017 Midwest Terminals and Gulf Coast Pipeline Brownsville River Southeast West Coast Terminals System Terminals Terminals Terminals Terminals Total Revenue: External customers $ 32,086 $ 5,734 $ 7,872 $ 5,410 $ 35,828 $ — $ 86,930 Frontera — — 3,284 — — — 3,284 Revenue $ 32,086 $ 5,734 $ 11,156 $ 5,410 $ 35,828 $ — $ 90,214 Capital expenditures $ 2,586 $ 267 $ 372 $ 1,046 $ 24,374 $ — $ 28,645 |
SUMMARY OF SIGNIFICANT ACCOUN45
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property (Details) | 6 Months Ended |
Jun. 30, 2018 | |
Terminals and pipelines | Minimum | |
Property, plant and equipment | |
Estimated useful lives | 15 years |
Terminals and pipelines | Maximum | |
Property, plant and equipment | |
Estimated useful lives | 25 years |
Furniture, fixtures and equipment | Minimum | |
Property, plant and equipment | |
Estimated useful lives | 3 years |
Furniture, fixtures and equipment | Maximum | |
Property, plant and equipment | |
Estimated useful lives | 25 years |
SUMMARY OF SIGNIFICANT ACCOUN46
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Taxes and Derivatives (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Income taxes | ||
Provision for U.S. federal income taxes | $ 0 | |
Net earnings per limited partner unit | ||
Limited partner interest (as a percent) | 98.00% | |
General partner interest (as a percent) | 2.00% | 2.00% |
Interest rate swap | ||
Accounting for derivative instruments | ||
Notional amount | $ 50 | $ 125 |
Fixed interest rate paid (as a percent) | 0.97% | 1.01% |
TRANSACTIONS WITH AFFILIATES (D
TRANSACTIONS WITH AFFILIATES (Details) - USD ($) $ in Thousands | May 13, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Transactions with affiliates | |||||||
Insurance expense paid | $ 1,271 | $ 1,002 | $ 2,517 | $ 2,008 | |||
Expense of insurance | 4,619 | 4,080 | 9,600 | 8,051 | |||
Insurance expenses | 1,271 | 1,002 | $ 2,517 | 2,008 | |||
Omnibus agreement | |||||||
Transactions with affiliates | |||||||
Increase in administrative fee, (as a percent) | 2.00% | ||||||
Notice period for termination of service agreement | 24 months | ||||||
Omnibus agreement | Second amended and restated omnibus agreement | |||||||
Transactions with affiliates | |||||||
Administrative fee paid | $ 13,700 | ||||||
Omnibus agreement | Third amended and restated omnibus agreement | |||||||
Transactions with affiliates | |||||||
Administrative fee paid | $ 2,700 | $ 3,200 | $ 6,100 | $ 6,100 | |||
Increase in administrative fee | $ 3,600 | ||||||
Omnibus agreement | Forecast | Third amended and restated omnibus agreement | |||||||
Transactions with affiliates | |||||||
Administrative fee paid | $ 8,400 | ||||||
Cost of Engineering and ESOH Groups | $ 8,900 |
TRANSACTIONS WITH AFFILIATES -
TRANSACTIONS WITH AFFILIATES - Agreements (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)bbl | Jun. 30, 2017USD ($) | |
June 2019 terminaling services agreement-Brownsville LLC | Frontera | Brownsville terminals | ||||
Transactions with affiliates | ||||
Notice period for termination of service agreement | 90 days | |||
Storage capacity agreed to be provided (in barrels) | bbl | 301,000 | |||
Throughput revenue | $ 0.6 | $ 0.4 | $ 1.2 | $ 0.8 |
June 2020 terminaling services agreement-Brownsville LLC | Frontera | Brownsville terminals | ||||
Transactions with affiliates | ||||
Notice period for termination of service agreement | 180 days | |||
Operations and reimbursement agreement-Frontera | Frontera | ||||
Transactions with affiliates | ||||
Ownership interest in joint venture (as a percent) | 50.00% | 50.00% | ||
Revenue recognized | $ 1.3 | 1.1 | $ 2.8 | 2.5 |
Terminaling services agreement- Gulf Coast Terminals | Associated Asphalt Marketing, LLC | Gulf Coast Terminals | ||||
Transactions with affiliates | ||||
Automatic renewal period of service agreement | 2 years | |||
Notice period for termination of service agreement | 180 days | |||
Storage capacity agreed to be provided (in barrels) | bbl | 750,000 | |||
Throughput revenue | $ 2.1 | $ 0 | $ 4.3 | $ 0 |
BUSINESS COMBINATION AND TERM49
BUSINESS COMBINATION AND TERMINAL ACQUISITION AND DISPOSITION - Business Combinations (Details) $ in Thousands, bbl in Millions | Dec. 15, 2017USD ($)itembbl | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) |
Final purchase price and assessment of the fair value of the assets acquired and liabilities assumed in the business combination | |||
Goodwill | $ 9,428 | $ 9,428 | |
West Coast terminals | |||
Business Acquisition [Line Items] | |||
Total purchase price | $ 276,800 | ||
Number of terminals | item | 2 | ||
Number of storage tanks | item | 64 | ||
Storage capacity (in barrels) | bbl | 5 | ||
Final purchase price and assessment of the fair value of the assets acquired and liabilities assumed in the business combination | |||
Other current assets | $ 1,037 | ||
Property, plant and equipment, net | 228,000 | ||
Goodwill | 943 | ||
Customer relationships | 47,000 | ||
Total assets acquired | 276,980 | ||
Environmental obligation | 220 | ||
Total liabilities assumed | 220 | ||
Allocated purchase price | $ 276,760 |
CONCENTRATION OF CREDIT RISK 50
CONCENTRATION OF CREDIT RISK AND TRADE ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Concentration of credit risk and trade accounts receivable | |||||
Contract revenue | $ 3,500 | $ 3,500 | |||
Trade accounts receivable | 12,458 | 12,458 | $ 11,128 | ||
Less allowance for doubtful accounts | (294) | (294) | (111) | ||
Trade accounts receivable, net | $ 12,164 | $ 12,164 | $ 11,017 | ||
NGL Energy Partners LP | |||||
Concentration of credit risk and trade accounts receivable | |||||
Percentage of total revenue generated by major customer | 23.00% | 27.00% | 23.00% | 26.00% | |
Castleton Commodities International LLC | |||||
Concentration of credit risk and trade accounts receivable | |||||
Percentage of total revenue generated by major customer | 9.00% | 13.00% | 10.00% | 13.00% | |
RaceTrac Petroleum Inc | |||||
Concentration of credit risk and trade accounts receivable | |||||
Percentage of total revenue generated by major customer | 12.00% | 13.00% | 12.00% | 12.00% |
OTHER CURRENT ASSETS (Details)
OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Dec. 31, 2017 | Jun. 30, 2018 | |
OTHER CURRENT ASSETS | ||
Prepaid insurance | $ 4,151 | $ 2,761 |
Amounts due from insurance companies | 1,981 | 1,755 |
Additive detergent | 1,715 | 1,216 |
Unrealized gain on derivative instrument | 449 | |
Deposits and other assets | 12,807 | 1,797 |
Other current assets | 20,654 | 7,978 |
Reimbursements from insurance companies | $ 200 | |
Deposits paid | $ 10,200 |
PROPERTY, PLANT AND EQUIPMENT52
PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Property, plant and equipment, net | ||
Property, plant and equipment, gross | $ 1,020,037 | $ 994,744 |
Less accumulated depreciation | (363,276) | (339,691) |
Property, plant and equipment, net | 656,761 | 655,053 |
Land | ||
Property, plant and equipment, net | ||
Property, plant and equipment, gross | 83,451 | 83,310 |
Terminals, pipelines and equipment | ||
Property, plant and equipment, net | ||
Property, plant and equipment, gross | 912,245 | 885,429 |
Furniture, fixtures and equipment | ||
Property, plant and equipment, net | ||
Property, plant and equipment, gross | 4,860 | 4,430 |
Construction in progress | ||
Property, plant and equipment, net | ||
Property, plant and equipment, gross | $ 19,481 | $ 21,575 |
GOODWILL (Details)
GOODWILL (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Goodwill | ||
Goodwill | $ 9,428 | $ 9,428 |
Brownsville terminals | ||
Goodwill | ||
Goodwill | 8,485 | 8,485 |
West Coast terminals | ||
Goodwill | ||
Goodwill | 943 | 943 |
West Coast and Brownsville Terminals | ||
Goodwill | ||
Impairment charges | $ 0 | $ 0 |
INVESTMENTS IN UNCONSOLIDATED54
INVESTMENTS IN UNCONSOLIDATED AFFILIATES (Details) $ in Thousands, bbl in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)bbl | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
INVESTMENTS IN UNCONSOLIDATED AFFILIATES | |||||
Carrying value of investments in unconsolidated affiliates | $ 231,767 | $ 231,767 | $ 233,181 | ||
Earnings from unconsolidated affiliates | 2,444 | $ 2,120 | 5,333 | $ 4,680 | |
Additional capital investments in unconsolidated affiliates | 114 | 145 | 1,264 | 2,145 | |
Cash distributions received from unconsolidated affiliates | $ 4,821 | 4,546 | $ 8,011 | 8,895 | |
BOSTCO | |||||
INVESTMENTS IN UNCONSOLIDATED AFFILIATES | |||||
Storage capacity | bbl | 7.1 | ||||
Percentage of ownership | 42.50% | 42.50% | 42.50% | ||
Carrying value of investments in unconsolidated affiliates | $ 207,627 | $ 207,627 | $ 209,373 | ||
Excess investment | 6,900 | 6,900 | 7,000 | ||
Earnings from unconsolidated affiliates | 1,848 | 1,275 | 3,839 | 2,981 | |
Additional capital investments in unconsolidated affiliates | 145 | 145 | |||
Cash distributions received from unconsolidated affiliates | 3,491 | 3,319 | 5,585 | 6,398 | |
Balance sheets: | |||||
Current assets | 20,794 | 20,794 | 24,976 | ||
Long-term assets | 460,308 | 460,308 | 469,348 | ||
Current liabilities | (7,590) | (7,590) | (17,550) | ||
Long-term liabilities | (1,314) | (1,314) | |||
Net assets | 472,198 | 472,198 | $ 476,774 | ||
Statements of comprehensive income (loss): | |||||
Revenue | 16,908 | 17,028 | 33,735 | 33,658 | |
Expenses | (11,515) | (13,628) | (24,064) | (25,866) | |
Net earnings | $ 5,393 | 3,400 | $ 9,671 | 7,792 | |
Frontera | |||||
INVESTMENTS IN UNCONSOLIDATED AFFILIATES | |||||
Storage capacity | bbl | 1.7 | ||||
Percentage of ownership | 50.00% | 50.00% | 50.00% | ||
Carrying value of investments in unconsolidated affiliates | $ 24,140 | $ 24,140 | $ 23,808 | ||
Earnings from unconsolidated affiliates | 596 | 845 | 1,494 | 1,699 | |
Additional capital investments in unconsolidated affiliates | 114 | 1,264 | 2,000 | ||
Cash distributions received from unconsolidated affiliates | 1,330 | 1,227 | 2,426 | 2,497 | |
Balance sheets: | |||||
Current assets | 5,720 | 5,720 | 5,649 | ||
Long-term assets | 44,613 | 44,613 | 44,292 | ||
Current liabilities | (1,922) | (1,922) | (2,147) | ||
Long-term liabilities | (131) | (131) | (178) | ||
Net assets | 48,280 | 48,280 | $ 47,616 | ||
Statements of comprehensive income (loss): | |||||
Revenue | 6,009 | 5,198 | 11,921 | 10,591 | |
Expenses | (4,817) | (3,508) | (8,933) | (7,193) | |
Net earnings | $ 1,192 | $ 1,690 | $ 2,988 | $ 3,398 | |
Class A Member Ownership Interest | BOSTCO | |||||
INVESTMENTS IN UNCONSOLIDATED AFFILIATES | |||||
Cash distributions, allocation percentage | 96.50% | ||||
Class B Member Ownership Interest | BOSTCO | |||||
INVESTMENTS IN UNCONSOLIDATED AFFILIATES | |||||
Cash distributions, allocation percentage | 3.50% |
OTHER ASSETS, NET (Details)
OTHER ASSETS, NET (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
OTHER ASSETS, NET | ||
Customer relationships, net of accumulated amortization of $3,679 and $2,294, respectively | $ 45,751 | $ 47,136 |
Revolving credit facility unamortized deferred issuance costs, net of accumulated amortization of $6,807 and $5,984, respectively | 6,364 | 6,778 |
Amounts due under long-term terminaling services agreements | 439 | 460 |
Unrealized gain on derivative instruments | 576 | |
Deposits and other assets | 289 | 288 |
Other assets, net | 52,843 | 55,238 |
Accumulated amortization of customer relationships | 3,679 | 2,294 |
Accumulated amortization of deferred financing costs | $ 6,807 | $ 5,984 |
Amortization period of customer relationships | 20 years |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
ACCRUED LIABILITIES | ||
Customer advances and deposits | $ 8,540 | $ 10,265 |
Accrued property taxes | 4,277 | 1,381 |
Accrued environmental obligations | 1,836 | 1,855 |
Interest payable | 7,960 | 982 |
Accrued expenses and other | 4,063 | 2,943 |
Accrued liabilities | 26,676 | $ 17,426 |
Contract liabilities | 400 | |
Revenue recognized from contract liabilities | 500 | |
Increase in remediation obligations due to change in estimate | 200 | |
Accrued environmental obligations | ||
Payments | $ 200 |
OTHER LIABILITIES (Details)
OTHER LIABILITIES (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
OTHER LIABILITIES | |||
Advance payments received under long-term terminaling services agreements | $ 1,782 | $ 1,599 | |
Deferred revenue-ethanol blending fees and other projects | 1,755 | 2,034 | |
Other liabilities | 3,537 | $ 3,633 | |
Completed projects billed | 900 | ||
Recognized revenue on a straight line basis for completed projects | 1,200 | $ 300 | |
Contract liabilities | 0 | ||
Revenue recognized from contract liabilities | $ 200 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2018USD ($) | Jun. 30, 2017 | Feb. 12, 2018USD ($) | Dec. 31, 2017USD ($) | |
Long-term debt | ||||
Senior notes unamortized deferred issuance costs, net of accumulated amortization of $301 and $nil, respectively | $ (7,777) | |||
Total long-term debt | 578,523 | $ 593,200 | ||
Accumulated amortization | $ 301 | 0 | ||
TLP Finance Corp | ||||
Long-term debt | ||||
Ownership interest in subsidiary (as a percent) | 100.00% | |||
TransMontaigne Operating Company L.P | ||||
Long-term debt | ||||
Ownership interest in subsidiary (as a percent) | 100.00% | |||
Amount of independent assets | $ 0 | |||
Amount of independent operations | 0 | |||
Restricted net assets | 0 | |||
6.125% senior notes due in 2026 | ||||
Long-term debt | ||||
Total long-term debt | $ 300,000 | |||
Interest (as percent) | 6.125% | |||
Sale of senior notes | $ 300,000 | |||
Credit facility | ||||
Long-term debt | ||||
Weighted average interest rate on borrowings (as a percent) | 4.70% | 3.40% | ||
Outstanding borrowings under credit facility | $ 286,300 | 593,200 | ||
Outstanding borrowings under letters of credit | $ 400 | 400 | ||
Credit facility | Minimum | ||||
Long-term debt | ||||
Commitment fee on unused amount of commitments (as a percent) | 0.375% | |||
Credit facility | Minimum | LIBOR | ||||
Long-term debt | ||||
Margin interest above reference rate (as a percent) | 1.75% | |||
Credit facility | Minimum | Base Rate | ||||
Long-term debt | ||||
Margin interest above reference rate (as a percent) | 0.75% | |||
Credit facility | Maximum | ||||
Long-term debt | ||||
Commitment fee on unused amount of commitments (as a percent) | 0.50% | |||
Credit facility | Maximum | LIBOR | ||||
Long-term debt | ||||
Margin interest above reference rate (as a percent) | 2.75% | |||
Credit facility | Maximum | Base Rate | ||||
Long-term debt | ||||
Margin interest above reference rate (as a percent) | 1.75% | |||
Revolving credit facility due March 13, 2022 | ||||
Long-term debt | ||||
Total long-term debt | $ 286,300 | $ 593,200 | ||
Maximum borrowing capacity | $ 850,000 | |||
Other investments as a percentage of consolidated net tangible assets | 5.00% | |||
Permitted JV investments subject to liquidity | $ 175,000 | |||
Revolving credit facility due March 13, 2022 | Maximum | ||||
Long-term debt | ||||
Leverage ratio | 5.25 | |||
Senior secured leverage ratio | 3.75 | |||
Interest coverage ratio | 2.75 |
PARTNERS' EQUITY (Details)
PARTNERS' EQUITY (Details) - shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Changes in number of units outstanding | ||
Issuance of common units pursuant to our savings and retention program (in units) | 33,205 | |
General partner interest (as a percent) | 2.00% | 2.00% |
Partners' Capital Account, Units, Treasury Units Reissued | 6,498 | |
Common units | ||
Changes in number of units outstanding | ||
Units outstanding at the beginning of the period | 16,177,353 | |
Issuance of common units pursuant to our savings and retention program (in units) | 44,798 | |
Units outstanding at the end of the period | 16,222,151 | 16,177,353 |
General partner interest | ||
Changes in number of units outstanding | ||
Units outstanding at the beginning of the period | 330,150 | |
Contribution of cash by TransMontaigne GP to maintain its 2% general partner interest | 905 | |
Units outstanding at the end of the period | 331,055 | 330,150 |
EQUITY-BASED COMPENSATION (Deta
EQUITY-BASED COMPENSATION (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Additional disclosures | ||||
Equity-based compensation | $ 441,000 | $ 352,000 | $ 2,458,000 | $ 2,169,000 |
TLP Management Services LLC | ||||
Additional disclosures | ||||
Equity-based compensation | $ 2,300,000 | 2,000,000 | ||
Restricted phantom units | TransMontaigne LLC-related party | ||||
Incentive plan activity | ||||
Units, unvested, outstanding at the beginning of the period | 54,244 | |||
Unit accrual for distributions paid (in units) | 2,447 | |||
Vesting (in units) | (18,970) | |||
Grant (in units) | 46,362 | |||
Units, unvested, outstanding at the end of the period | 70,009 | 70,009 | ||
Outstanding at the beginning of the period (in dollars per unit) | $ 38.81 | |||
Units accrual for distributions paid (in dollars per unit) | 37.56 | |||
Vesting (in dollars per unit) | 36.61 | |||
Grant (in dollars per unit) | 35.23 | |||
Outstanding at the end of the period (in dollars per unit) | $ 38.22 | $ 38.22 | ||
Units outstanding at the beginning of the period (in units) | 91,877 | |||
Issuance (in units) | (44,798) | |||
Units withheld for settlement of withholding taxes (in units) | (16,822) | |||
Unit accrual for distributions (in units) | 3,371 | |||
Vesting (in units) | 18,970 | |||
Grant (in units) | 33,097 | |||
Forfeited (in units) | (809) | |||
Units outstanding at the end of the period (in units) | 98,960 | 98,960 | ||
Vested and expected to vest (in units) | 168,969 | 168,969 | ||
Outstanding at the beginning of the period (in dollars per unit) | $ 38.91 | |||
Issuance (in dollars per unit) | 37.75 | |||
Units withheld for settlement of withholding taxes (in dollars) | 37.59 | |||
Unit accrual for distributions paid (in dollars per unit) | 37.53 | |||
Vesting (in dollars per unit) | 36.61 | |||
Grant (in dollars per unit) | 35.23 | |||
Forfeited (in dollars per unit) | 35.23 | |||
Outstanding at the end of the period (in dollars per unit) | $ 38.52 | 38.52 | ||
Vested and expected to vest (in dollars per unit) | $ 38.40 | $ 38.40 | ||
Restricted phantom units | TLP Management Services LLC | ||||
Additional disclosures | ||||
Nonemployee service, unrecognized equity-based compensation expense | $ 1,900,000 | $ 1,900,000 | ||
Expected term (in years) | 1 year 8 months 23 days | |||
Vesting (as a percent) | 50.00% | |||
Restricted phantom units | TLP Management Services LLC | Tranche One | ||||
Additional disclosures | ||||
Earlier vesting, age threshold (in years) | 60 years | |||
Restricted phantom units | TLP Management Services LLC | Tranche Two | ||||
Additional disclosures | ||||
Earlier vesting, age threshold (in years) | 55 years | |||
Earlier vesting, length of service threshold (in years) | 10 years | |||
Restricted phantom units | TLP Management Services LLC | Tranche Three | ||||
Additional disclosures | ||||
Earlier vesting, age threshold (in years) | 50 years | |||
Earlier vesting, length of service threshold (in years) | 20 years | |||
Long-term incentive plan | ||||
Long-term incentive plan | ||||
Authorized units | 750,000 | 750,000 | ||
Additional disclosures | ||||
Equity-based compensation | $ 140,000 | $ 140,000 | ||
Long-term incentive plan | Common units | TLP Management Services LLC | ||||
Incentive plan activity | ||||
Outstanding at the end of the period (in dollars per unit) | $ 0 | $ 0 |
NET EARNINGS PER LIMITED PART61
NET EARNINGS PER LIMITED PARTNER UNIT (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
NET EARNINGS PER LIMITED PARTNER UNIT | |||||||||
Net earnings | $ 9,460 | $ 14,478 | $ 21,634 | $ 27,432 | $ 48,493 | ||||
Less: | |||||||||
Distributions payable on behalf of incentive distribution rights | (3,758) | (2,873) | (7,353) | (5,509) | |||||
Distributions payable on behalf of general partner interest | (263) | (244) | (522) | (483) | |||||
Earnings allocable to general partner interest less than distributions payable to general partner interest | 149 | 12 | 237 | 44 | |||||
Earnings allocable to general partner interest including incentive distribution rights | (3,872) | (3,105) | (7,638) | (5,948) | |||||
Net earnings allocable to limited partners | $ 5,588 | $ 11,373 | $ 13,996 | $ 21,484 | |||||
Basic weighted average units | 16,327 | 16,260 | 16,310 | 16,253 | |||||
Diluted weighted average units | 16,356 | 16,279 | 16,345 | 16,271 | |||||
Net earnings per limited partner unit-basic (in dollars per unit) | $ 0.34 | $ 0.70 | $ 0.86 | $ 1.32 | |||||
Net earnings per limited partner unit-diluted (in dollars per unit) | 0.34 | 0.70 | $ 0.86 | $ 1.32 | |||||
Period for declaration of distribution, maximum | 45 days | ||||||||
Distribution declared per common unit (in dollars per unit) | $ 0.795 | $ 0.785 | $ 0.770 | $ 0.755 | $ 0.740 | $ 0.725 |
COMMITMENTS AND CONTINGENCIES62
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
COMMITMENTS AND CONTINGENCIES | ||||
Contractual commitments for supply of services, labor and materials | $ 38,000 | $ 38,000 | ||
Future minimum lease payments under non-cancelable operating leases | ||||
2018 (remainder of the year) | 1,534 | 1,534 | ||
2,019 | 3,409 | 3,409 | ||
2,020 | 2,047 | 2,047 | ||
2,021 | 1,929 | 1,929 | ||
2,022 | 978 | 978 | ||
Thereafter | 4,276 | 4,276 | ||
Total | 14,173 | 14,173 | ||
Expected minimum sublease rentals to be received | 7,800 | 7,800 | ||
Rental expense under operating leases | $ 500 | $ 900 | $ 1,000 | $ 1,700 |
REVENUE FROM CONTRACTS WITH C63
REVENUE FROM CONTRACTS WITH CUSTOMERS - Disaggregated (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 55,344 | $ 45,364 | $ 111,788 | $ 90,214 |
Firm commitments (ASC 840 revenue) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 39,149 | 77,855 | ||
Firm commitments (ASC 606 revenue) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 3,549 | 6,976 | ||
Total firm commitments revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 42,698 | 84,831 | ||
Ancillary revenue (ASC 606 revenue) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 9,680 | 20,738 | ||
Total terminaling services fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 52,378 | 105,569 | ||
Pipeline transportation fees (ASC 840 revenue) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 794 | 1,663 | ||
Management fees (ASC 606 revenue) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 2,172 | $ 4,556 |
REVENUE FROM CONTRACTS WITH C64
REVENUE FROM CONTRACTS WITH CUSTOMERS - Contract Revenue (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligation | $ 10,715 |
Estimated revenue in accordance with ASC 840, remainder of 2018 | 77,300 |
Estimated revenue in accordance with ASC 840, 2019 | 124,200 |
Estimated revenue in accordance with ASC 840, 2020 | 103,300 |
Estimated revenue in accordance with ASC 840, 2021 | 78,500 |
Estimated revenue in accordance with ASC 840, therafter | 59,900 |
Gulf Coast Terminals | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligation | 2,781 |
River terminals | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligation | 3,175 |
West Coast terminals | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligation | 4,759 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligation | $ 5,678 |
Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-04-01 | Gulf Coast Terminals | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligation | $ 2,060 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-04-01 | River terminals | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligation | 578 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-04-01 | West Coast terminals | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligation | 3,040 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligation | $ 3,354 |
Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | Gulf Coast Terminals | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligation | $ 721 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | River terminals | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligation | 1,039 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | West Coast terminals | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligation | 1,594 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligation | $ 1,164 |
Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | River terminals | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligation | $ 1,039 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | West Coast terminals | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligation | 125 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligation | $ 519 |
Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 0 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | River terminals | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligation | $ 519 |
BUSINESS SEGMENTS (Details)
BUSINESS SEGMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2016 | |
Segments of business | ||||||||
Total revenue | $ 55,344 | $ 45,364 | $ 111,788 | $ 90,214 | ||||
Direct operating costs and expenses | (19,275) | (15,984) | (39,420) | (32,495) | ||||
Net margins | 36,069 | 29,380 | 72,368 | 57,719 | ||||
General and administrative expenses | (4,619) | (4,080) | (9,600) | (8,051) | ||||
Insurance expenses | (1,271) | (1,002) | (2,517) | (2,008) | ||||
Equity-based compensation expense | (441) | (352) | (2,458) | (2,169) | ||||
Depreciation and amortization | (13,160) | (8,792) | (24,968) | (17,497) | ||||
Earnings from unconsolidated affiliates | 2,444 | 2,120 | 5,333 | 4,680 | ||||
Operating income | 19,022 | 17,274 | 38,158 | 32,674 | ||||
Other expenses | (9,562) | (2,796) | (16,524) | (5,242) | ||||
Net earnings | 9,460 | 14,478 | 21,634 | 27,432 | $ 48,493 | |||
Capital expenditures | 15,452 | 19,145 | 21,955 | 28,645 | ||||
Identifiable assets | 729,734 | 729,734 | ||||||
Cash and cash equivalents | 390 | 1,965 | 390 | 1,965 | 923 | $ 937 | $ 641 | $ 593 |
Investments in unconsolidated affiliates | 231,767 | 231,767 | 233,181 | |||||
Deferred issuance costs | 6,364 | 6,364 | 6,778 | |||||
Other | 6,567 | 6,567 | ||||||
TOTAL ASSETS | 974,822 | 974,822 | $ 987,003 | |||||
External customers | ||||||||
Segments of business | ||||||||
Total revenue | 51,379 | 43,850 | 103,493 | 86,930 | ||||
Affiliates | ||||||||
Segments of business | ||||||||
Total revenue | 3,965 | 1,514 | 8,295 | 3,284 | ||||
Affiliates | Frontera | ||||||||
Segments of business | ||||||||
Total revenue | 1,894 | 1,514 | 4,012 | 3,284 | ||||
Affiliates | Associated Asphalt Marketing, LLC | ||||||||
Segments of business | ||||||||
Total revenue | 2,071 | 4,283 | ||||||
Gulf Coast Terminals | ||||||||
Segments of business | ||||||||
Total revenue | 16,551 | 15,796 | 32,821 | 32,086 | ||||
Direct operating costs and expenses | (5,413) | (5,426) | (11,245) | (10,980) | ||||
Net margins | 11,138 | 10,370 | 21,576 | 21,106 | ||||
Capital expenditures | 1,814 | 1,059 | 3,180 | 2,586 | ||||
Identifiable assets | 122,011 | 122,011 | ||||||
Gulf Coast Terminals | External customers | ||||||||
Segments of business | ||||||||
Total revenue | 14,480 | 15,796 | 28,538 | 32,086 | ||||
Gulf Coast Terminals | Affiliates | Associated Asphalt Marketing, LLC | ||||||||
Segments of business | ||||||||
Total revenue | 2,071 | 4,283 | ||||||
Midwest Terminals and Pipeline System | ||||||||
Segments of business | ||||||||
Total revenue | 2,838 | 2,898 | 5,690 | 5,734 | ||||
Direct operating costs and expenses | (743) | (693) | (1,455) | (1,405) | ||||
Net margins | 2,095 | 2,205 | 4,235 | 4,329 | ||||
Capital expenditures | 35 | 45 | 336 | 267 | ||||
Identifiable assets | 20,488 | 20,488 | ||||||
Midwest Terminals and Pipeline System | External customers | ||||||||
Segments of business | ||||||||
Total revenue | 2,838 | 2,898 | 5,690 | 5,734 | ||||
Brownsville terminals | ||||||||
Segments of business | ||||||||
Total revenue | 4,230 | 5,482 | 8,836 | 11,156 | ||||
Direct operating costs and expenses | (2,135) | (2,582) | (4,176) | (5,454) | ||||
Net margins | 2,095 | 2,900 | 4,660 | 5,702 | ||||
Capital expenditures | 2,024 | 228 | 2,467 | 372 | ||||
Identifiable assets | 42,507 | 42,507 | ||||||
Brownsville terminals | External customers | ||||||||
Segments of business | ||||||||
Total revenue | 2,336 | 3,968 | 4,824 | 7,872 | ||||
Brownsville terminals | Affiliates | Frontera | ||||||||
Segments of business | ||||||||
Total revenue | 1,894 | 1,514 | 4,012 | 3,284 | ||||
River terminals | ||||||||
Segments of business | ||||||||
Total revenue | 2,589 | 2,740 | 5,343 | 5,410 | ||||
Direct operating costs and expenses | (1,805) | (1,535) | (3,641) | (3,185) | ||||
Net margins | 784 | 1,205 | 1,702 | 2,225 | ||||
Capital expenditures | 345 | 652 | 892 | 1,046 | ||||
Identifiable assets | 48,710 | 48,710 | ||||||
River terminals | External customers | ||||||||
Segments of business | ||||||||
Total revenue | 2,589 | 2,740 | 5,343 | 5,410 | ||||
Southeast terminals | ||||||||
Segments of business | ||||||||
Total revenue | 19,704 | 18,448 | 40,126 | 35,828 | ||||
Direct operating costs and expenses | (5,714) | (5,748) | (12,333) | (11,471) | ||||
Net margins | 13,990 | 12,700 | 27,793 | 24,357 | ||||
Capital expenditures | 9,152 | 17,161 | 12,435 | 24,374 | ||||
Identifiable assets | 221,539 | 221,539 | ||||||
Southeast terminals | External customers | ||||||||
Segments of business | ||||||||
Total revenue | 19,704 | 18,448 | 40,126 | 35,828 | ||||
West Coast terminals | ||||||||
Segments of business | ||||||||
Total revenue | 9,432 | 18,972 | ||||||
Direct operating costs and expenses | (3,465) | (6,570) | ||||||
Net margins | 5,967 | 12,402 | ||||||
Capital expenditures | 2,082 | 2,645 | ||||||
Identifiable assets | 274,479 | 274,479 | ||||||
West Coast terminals | External customers | ||||||||
Segments of business | ||||||||
Total revenue | 9,432 | 18,972 | ||||||
Terminaling services fees | Gulf Coast Terminals | ||||||||
Segments of business | ||||||||
Total revenue | 16,465 | 15,533 | 32,638 | 31,540 | ||||
Terminaling services fees | Midwest Terminals and Pipeline System | ||||||||
Segments of business | ||||||||
Total revenue | 2,405 | 2,465 | 4,824 | 4,868 | ||||
Terminaling services fees | Brownsville terminals | ||||||||
Segments of business | ||||||||
Total revenue | 1,977 | 2,505 | 4,043 | 4,972 | ||||
Terminaling services fees | River terminals | ||||||||
Segments of business | ||||||||
Total revenue | 2,589 | 2,740 | 5,343 | 5,410 | ||||
Terminaling services fees | Southeast terminals | ||||||||
Segments of business | ||||||||
Total revenue | 19,510 | 18,263 | 39,749 | 35,460 | ||||
Terminaling services fees | West Coast terminals | ||||||||
Segments of business | ||||||||
Total revenue | 9,432 | 18,972 | ||||||
Total firm commitments revenue | ||||||||
Segments of business | ||||||||
Total revenue | 42,698 | 84,831 | ||||||
Ancillary revenue (ASC 606 revenue) | ||||||||
Segments of business | ||||||||
Total revenue | 9,680 | 20,738 | ||||||
Total terminaling services fees | ||||||||
Segments of business | ||||||||
Total revenue | 52,378 | 105,569 | ||||||
Pipeline transportation fees (ASC 840 revenue) | ||||||||
Segments of business | ||||||||
Total revenue | 794 | 1,663 | ||||||
Pipeline transportation fees (ASC 840 revenue) | Midwest Terminals and Pipeline System | ||||||||
Segments of business | ||||||||
Total revenue | 433 | 433 | 866 | 866 | ||||
Pipeline transportation fees (ASC 840 revenue) | Brownsville terminals | ||||||||
Segments of business | ||||||||
Total revenue | 361 | 1,363 | 797 | 2,646 | ||||
Management fees (ASC 606 revenue) | ||||||||
Segments of business | ||||||||
Total revenue | 2,172 | 4,556 | ||||||
Management fees (ASC 606 revenue) | Gulf Coast Terminals | ||||||||
Segments of business | ||||||||
Total revenue | 86 | 263 | 183 | 546 | ||||
Management fees (ASC 606 revenue) | Brownsville terminals | ||||||||
Segments of business | ||||||||
Total revenue | 1,892 | 1,614 | 3,996 | 3,538 | ||||
Management fees (ASC 606 revenue) | Southeast terminals | ||||||||
Segments of business | ||||||||
Total revenue | $ 194 | $ 185 | $ 377 | $ 368 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - $ / shares | Aug. 08, 2018 | Jul. 17, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jul. 09, 2018 |
Subsequent Events | |||||||||
Distribution announced per unit (in dollars per unit) | $ 0.795 | $ 0.785 | $ 0.770 | $ 0.755 | $ 0.740 | $ 0.725 | |||
Subsequent events | |||||||||
Subsequent Events | |||||||||
Distribution announced per unit (in dollars per unit) | $ 0.795 | ||||||||
Distribution paid per unit (in dollars per unit) | $ 0.795 | ||||||||
ArcLight | Common units | Subsequent events | |||||||||
Subsequent Events | |||||||||
Buyout offer amount (in dollars per unit) | $ 38 |