Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 01, 2013 | |
Entity Information [Line Items] | ' | ' |
Entity Registrant Name | 'Blueknight Energy Partners, L.P. | ' |
Entity Central Index Key | '0001392091 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 22,777,262 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $1,642 | $3,177 |
Accounts receivable, net of allowance for doubtful accounts of $469 and $69 at December 31, 2012 and September 30, 2013, respectively | 14,312 | 9,948 |
Receivables from related parties, net of allowance for doubtful accounts of $0 for both dates | 5,826 | 3,522 |
Prepaid insurance | 2,027 | 1,237 |
Assets held for sale, net of accumulated depreciation and impairments of $450 and $0 at December 31, 2012 and September 30, 2013, respectively | 0 | 281 |
Other current assets | 1,474 | 1,822 |
Total current assets | 25,281 | 19,987 |
Property, plant and equipment, net of accumulated depreciation and impairments of $153,216 and $173,429 at December 31, 2012 and September 30, 2013, respectively | 305,115 | 267,741 |
Investment in unconsolidated affiliate | 19,675 | 0 |
Goodwill | 7,216 | 7,216 |
Debt issuance costs, net | 3,747 | 3,225 |
Intangibles and other assets, net | 1,417 | 1,656 |
Total assets | 362,451 | 299,825 |
Current liabilities: | ' | ' |
Accounts payable | 12,027 | 10,052 |
Accrued interest payable | 156 | 164 |
Accrued interest payable to related parties | 0 | 304 |
Accrued property taxes payable | 2,731 | 1,938 |
Unearned revenue | 3,680 | 4,068 |
Unearned revenue with related parties | 219 | 316 |
Accrued payroll | 6,483 | 6,409 |
Other current liabilities | 4,476 | 4,032 |
Current portion of long-term payable to related parties | 0 | 1,881 |
Total current liabilities | 29,772 | 29,164 |
Long-term payable to related parties | 0 | 800 |
Other long-term liabilities | 97 | 206 |
Long-term debt (including $15.0 million with related parties at December 31, 2012) | 274,411 | 211,000 |
Commitments and contingencies (Note 13) | ' | ' |
Partners’ capital: | ' | ' |
Series A Preferred Units (30,159,958 units issued and outstanding for both dates) | 204,599 | 204,599 |
Common unitholders (22,675,135 and 22,709,621 units issued and outstanding at December 31, 2012 and September 30, 2013, respectively) | 463,849 | 464,433 |
General partner interest (2.1% with 1,127,755 general partner units outstanding for both dates) | -610,277 | -610,377 |
Total Partners’ capital | 58,171 | 58,655 |
Total liabilities and Partners’ capital | $362,451 | $299,825 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Current assets: | ' | ' |
Accounts receivable, allowance for doubtful accounts | $69,000 | $469,000 |
Receivables from related parties, allowance for doubtful accounts | 0 | 0 |
Accumulated Depreciation and Impairments, Assets held for sale | 0 | 450,000 |
Accumulated Depreciation and Impairments, property plant and equipment | 173,429,000 | 153,216,000 |
LIABILITIES AND PARTNERS’ CAPITAL | ' | ' |
Long-term debt with related parties | $0 | $15,000,000 |
Partners’ capital: | ' | ' |
Series A Preferred unitholders, units issued | 30,159,958 | 30,159,958 |
Series A Preferred unitholders, units outstanding | 30,159,958 | 30,159,958 |
Common unitholders, units issued | 22,709,621 | 22,675,135 |
Common unitholders, units outstanding | 22,709,621 | 22,675,135 |
General partner interest, units outstanding | 1,127,755 | 1,127,755 |
General partner percentage interest | 2.10% | 2.10% |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Service revenue: | ' | ' | ' | ' |
Third party revenue | $39,844 | $34,797 | $107,744 | $100,844 |
Related party revenue | 15,399 | 12,329 | 39,381 | 34,616 |
Total revenue | 55,243 | 47,126 | 147,125 | 135,460 |
Expenses: | ' | ' | ' | ' |
Operating | 32,599 | 32,027 | 96,503 | 90,760 |
General and administrative | 4,649 | 4,119 | 13,806 | 13,608 |
Total expenses | 37,248 | 36,146 | 110,309 | 104,368 |
Asset Impairment Charges | -5,855 | -95 | -5,855 | -1,168 |
Gain on sale of assets | 734 | 46 | 1,732 | 5,265 |
Operating income | 12,874 | 10,931 | 32,693 | 35,189 |
Other income (expense): | ' | ' | ' | ' |
Equity earnings (loss) in unconsolidated affiliate | -151 | 0 | -325 | 0 |
Interest expense (net of capitalized interest of $31, $272, $93 and $969, respectively) | -1,897 | -2,909 | -9,188 | -8,877 |
Income before income taxes | 10,826 | 8,022 | 23,180 | 26,312 |
Provision for income taxes | 285 | 115 | 451 | 264 |
Net income | 10,541 | 7,907 | 22,729 | 26,048 |
Allocation of net income for calculation of earnings per unit: | ' | ' | ' | ' |
General partner interest in net income | 220 | 165 | 537 | 659 |
Noncontrolling Interest in Net Income (Loss) Preferred Unit Holders, Redeemable | 5,391 | 5,391 | 16,173 | 16,173 |
Beneficial conversion feature attributable to preferred units | 0 | 0 | 0 | 1,853 |
Income available to limited partners | $4,930 | $2,351 | $6,019 | $7,363 |
Basic net income per common unit | $0.21 | $0.10 | $0.26 | $0.32 |
Weighted average common units outstanding - basic | 22,697 | 22,670 | 22,684 | 22,666 |
Diluted net income per common unit | $0 | $0.10 | $0.26 | $0.32 |
Weighted average common units outstanding - diluted | 53,718 | 22,670 | 22,684 | 22,666 |
CONSOLIDATED_STATEMENTS_OF_OPE1
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Statement [Abstract] | ' | ' | ' | ' |
Interest Costs Capitalized | $271,552.30 | $30,500.70 | $969,182.12 | $93,006.20 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (USD $) | Total | Common Unitholders [Member] | Series A Preferred Unitholders [Member] | General Partner Interest [Member] |
In Thousands, unless otherwise specified | ||||
Balance at Dec. 31, 2012 | $58,655 | $464,433 | $204,599 | ($610,377) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' |
Net income | 22,729 | 6,081 | 16,173 | 475 |
Equity-based incentive compensation | 1,547 | 1,513 | 0 | 34 |
Profits interest contribution | 112 | ' | 0 | 112 |
Distributions | -24,872 | -8,178 | -16,173 | -521 |
Balance at Sep. 30, 2013 | $58,171 | $463,849 | $204,599 | ($610,277) |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net income | $22,729 | $26,048 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Provision for uncollectible receivables from third parties | 400 | -7 |
Depreciation and amortization | 17,812 | 17,174 |
Amortization and write-off of debt issuance costs | 3,117 | 1,332 |
Asset Impairment Charges | -5,855 | -1,168 |
Gain on sale of assets | -1,732 | -5,265 |
Equity-based incentive compensation | 1,547 | 1,079 |
Equity (earnings) loss in unconsolidated affiliate | -325 | 0 |
Changes in assets and liabilities | ' | ' |
Decrease (increase) in accounts receivable | -5,844 | 3,069 |
Decrease (increase) in receivables from related parties | -2,304 | 1,399 |
Decrease in prepaid insurance | 2,022 | 1,862 |
Decrease (increase) in other current assets | 348 | -948 |
Decrease (increase) in other assets | 11 | -72 |
Decrease in accounts payable | -1,490 | -2,079 |
Decrease in accrued interest payable | -8 | -22 |
Decrease in accrued interest payable to related parties | -304 | -54 |
Increase in accrued property taxes | 793 | 905 |
Increase (decrease) in unearned revenue | -388 | 2,603 |
Decrease in unearned revenue from related parties | -97 | -870 |
Increase in accrued payroll | 74 | 56 |
Decrease in other accrued liabilities | -605 | -906 |
Net cash provided by operating activities | 42,261 | 46,472 |
Cash flows from investing activities: | ' | ' |
Capital expenditures | -56,438 | -18,730 |
Proceeds from sale of assets | 1,980 | 7,389 |
Investment in unconsolidated affiliate | -20,000 | 0 |
Net cash used in investing activities | -74,458 | -11,341 |
Cash flows from financing activities: | ' | ' |
Payment on insurance premium financing agreement | -1,669 | -1,008 |
Debt issuance costs | -3,639 | 0 |
Payments on long-term payable to related party | -2,681 | -1,205 |
Borrowings under credit facility | 331,411 | 31,000 |
Payments under credit facility | -268,000 | -36,000 |
Capital contribution related to profits interest (see Note 14) | 112 | 0 |
Distributions | -24,872 | -24,018 |
Net cash provided by (used in) financing activities | 30,662 | -31,231 |
Net increase (decrease) in cash and cash equivalents | -1,535 | 3,900 |
Cash and cash equivalents at beginning of period | 3,177 | 1,239 |
Cash and cash equivalents at end of period | 1,642 | 5,139 |
Supplemental disclosure of cash flow information: | ' | ' |
Increase (decrease) in accounts payable related to purchase of property, plant and equipment | 3,465 | -1,307 |
Other Significant Noncash Transaction, Value of Consideration Received | 194 | 0 |
Increase in accrued liabilities related to insurance premium financing agreement | 2,609 | 1,580 |
Decrease (Increase) in accounts receivable related to purchase of property, plant and equipment | $1,274 | $0 |
ORGANIZATION_AND_NATURE_OF_BUS
ORGANIZATION AND NATURE OF BUSINESS | 9 Months Ended |
Sep. 30, 2013 | |
ORGANIZATION AND NATURE OF BUSINESS [Abstract] | ' |
ORGANIZATION AND NATURE OF BUSINESS | ' |
ORGANIZATION AND NATURE OF BUSINESS | |
Blueknight Energy Partners, L.P. and subsidiaries (collectively, the “Partnership”) is a publicly traded master limited partnership with operations in twenty-three states. The Partnership provides integrated terminalling, storage, processing, gathering and transportation services for companies engaged in the production, distribution and marketing of crude oil and asphalt products. The Partnership manages its operations through four operating segments: (i) crude oil terminalling and storage services, (ii) crude oil pipeline services, (iii) crude oil trucking and producer field services and (iv) asphalt services. The Partnership’s common units and preferred units, which represent limited partnership interests in the Partnership, are listed on the NASDAQ Global Market under the symbols “BKEP” and “BKEPP,” respectively. The Partnership was formed in February 2007 as a Delaware master limited partnership initially to own, operate and develop a diversified portfolio of complementary midstream energy assets. |
BASIS_OF_CONSOLIDATION_AND_PRE
BASIS OF CONSOLIDATION AND PRESENTATION | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
BASIS OF CONSOLIDATION AND PRESENTATION | ' |
BASIS OF CONSOLIDATION AND PRESENTATION | |
The financial statements have been prepared in accordance with accounting principles and practices generally accepted in the United States of America (“GAAP”). The consolidated statements of operations for the three and nine months ended September 30, 2012 and 2013, the consolidated statement of changes in partners’ capital for the nine months ended September 30, 2013, the statement of cash flows for the nine months ended September 30, 2012 and 2013, and the consolidated balance sheet as of September 30, 2013 are unaudited. In the opinion of management, the unaudited consolidated financial statements have been prepared on the same basis as the audited financial statements and include all adjustments necessary to state fairly the financial position and results of operations for the respective interim periods. All adjustments are of a recurring nature unless otherwise disclosed herein. The 2012 year-end consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. These consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Partnership’s annual report on Form 10-K for the year ended December 31, 2012 filed with the Securities and Exchange Commission (the “SEC”) on March 14, 2013 (the “2012 Form 10-K”). Interim financial results are not necessarily indicative of the results to be expected for an annual period. The Partnership’s significant accounting policies are consistent with those disclosed in Note 4 of the Notes to Consolidated Financial Statements in its 2012 Form 10-K. A reclassification has been made to the consolidated statements of operations for the three months and nine months ended September 30, 2012 to conform to the current financial statement presentation. This was a reclassification of asset impairment expense from operating expenses to a separate component of operating income. The reclassification has no impact on net income. | |
The Partnership’s investment in Advantage Pipeline, L.L.C. (“Advantage Pipeline”), over which the Partnership has significant influence but not control, is accounted for by the equity method. The Partnership does not consolidate any part of the assets or liabilities of its equity investee. The Partnership’s share of net income or loss is reflected as one line item on the Partnership’s Consolidated Statements of Operations entitled “Equity earnings in unconsolidated affiliate” and will increase or decrease, as applicable, the carrying value of the Partnership’s investment in the unconsolidated affiliate on the balance sheet. Distributions to the Partnership will reduce the carrying value of its investment and will be reflected in the Partnership’s Consolidated Statements of Cash Flows in the line item “Distributions from unconsolidated affiliate.” In turn, contributions will increase the carrying value of the Partnership’s investment and will be reflected in the Partnership’s Consolidated Statements of Cash Flows in investing activities. The Partnership evaluates its equity investment for impairment in accordance with FASB guidance with respect to the equity method of accounting for investments in common stock. An impairment of an equity investment results when factors indicate that the investment’s fair value is less than its carrying value and the reduction in value is other than temporary in nature. |
RECENT_EVENTS
RECENT EVENTS | 9 Months Ended |
Sep. 30, 2013 | |
RECENT EVENTS [Abstract] | ' |
RECENT EVENTS | ' |
RECENT EVENTS | |
On February 4, 2013, the Partnership announced that it entered into an agreement with Advantage Pipeline to acquire approximately 30% ownership in a 70 mile crude oil pipeline project running from Pecos, Texas to Crane, Texas (the “Pecos River Pipeline”). The Pecos River Pipeline is a new 16" diameter pipeline that will enable west Texas producers to deliver crude oil to Gulf Coast markets through a pipeline connection at Crane, Texas. On September 17, 2013, commercial service started on Phase I of the system consisting of the Highway 18 Station near Grandfalls, Texas and 36 miles of pipeline connecting to the Longhorn Pipeline in Crane, Texas. The Partnership operates the pipeline under a long term agreement with Advantage Pipeline (see Note 8). | |
On June 28, 2013, the Partnership entered into an amended and restated credit agreement which consists of a $400.0 million revolving loan facility (see Note 5). |
DEBT
DEBT | 9 Months Ended | |
Sep. 30, 2013 | ||
Debt Disclosure [Abstract] | ' | |
DEBT | ' | |
DEBT | ||
On June 28, 2013, the Partnership entered into an amended and restated credit agreement which consists of a $400.0 million revolving loan facility. As of November 1, 2013, approximately $266.4 million of revolver borrowings and $0.5 million of letters of credit were outstanding under the credit facility, leaving the Partnership with approximately $133.1 million available capacity for additional revolver borrowings and letters of credit under the credit facility, although the Partnership’s ability to borrow such funds may be limited by the financial covenants in the credit facility. In connection with entering into the amended and restated credit agreement, the Partnership paid certain upfront fees to the lenders thereunder, and the Partnership paid certain arrangement and other fees to the arranger and administrative agent of the credit agreement. The proceeds of loans made under the amended and restated credit agreement may be used for working capital and other general corporate purposes of the Partnership. All references herein to the credit agreement on or after June 28, 2013 refer to the amended and restated credit agreement. | ||
The credit agreement is guaranteed by all of the Partnership’s existing subsidiaries. Obligations under the credit agreement are secured by first priority liens on substantially all of the Partnership’s assets and those of the guarantors, including all material pipeline, gathering and processing assets, all material storage tanks and asphalt facilities, all material working capital assets and a pledge of all of the Partnership’s equity interests in its subsidiaries. | ||
The credit agreement includes procedures for additional financial institutions to become revolving lenders, or for any existing lender to increase its revolving commitment thereunder, subject to an aggregate maximum of $500.0 million for all revolving loan commitments under the credit agreement. | ||
The credit agreement will mature on June 28, 2018, and all amounts outstanding under the credit agreement will become due and payable on such date. The Partnership may prepay all loans under the credit agreement at any time without premium or penalty (other than customary LIBOR breakage costs), subject to certain notice requirements. The credit agreement requires mandatory prepayments of amounts outstanding thereunder with the net proceeds of certain asset sales, property or casualty insurance claims, and condemnation proceedings, unless the Partnership reinvests such proceeds in accordance with the credit agreement, but these mandatory prepayments will not require any reduction of the lenders' commitments under the credit agreement. | ||
Borrowings under the credit agreement bear interest, at the Partnership’s option, at either the reserve-adjusted eurodollar rate (as defined in the credit agreement) plus an applicable margin that ranges from 2.0% to 3.0% or the alternate base rate (the highest of the agent bank’s prime rate, the federal funds effective rate plus 0.5%, and the 30-day eurodollar rate plus 1%) plus an applicable margin that ranges from 1.0% to 2.0%. The Partnership pays a per annum fee on all letters of credit issued under the credit agreement, which fee equals the applicable margin for loans accruing interest based on the eurodollar rate, and the Partnership pays a commitment fee ranging from 0.375% to 0.5% on the unused commitments under the credit agreement. The credit agreement does not have a floor for the alternate base rate or the eurodollar rate. The applicable margins for the Partnership’s interest rate, the letter of credit fee and the commitment fee vary quarterly based on the Partnership’s consolidated total leverage ratio (as defined in the credit agreement, being generally computed as the ratio of consolidated total debt to consolidated earnings before interest, taxes, depreciation, amortization and certain other non-cash charges). | ||
The credit agreement includes financial covenants that are tested on a quarterly basis, based on the rolling four-quarter period that ends on the last day of each fiscal quarter. | ||
The maximum permitted consolidated total leverage ratio is 4.50 to 1.00, provided that the maximum permitted consolidated total leverage ratio is 5.00 to 1.00 from and after (i) the last day of the fiscal quarter immediately preceding the fiscal quarter in which a specified acquisition (as defined in the credit agreement) occurs to and including the last day of the second full fiscal quarter following the fiscal quarter in which such specified acquisition occurred and (ii) the date on which the Partnership issues qualified senior notes (as defined in the credit agreement, but generally being unsecured indebtedness with no required principal payments prior to June 28, 2019) in an aggregate principal amount (when combined with all other qualified senior notes previously or concurrently issued) that equals or exceeds $200.0 million. | ||
The maximum permitted consolidated senior secured leverage ratio (as defined in the credit agreement, but generally computed as the ratio of consolidated total secured debt to consolidated earnings before interest, taxes, depreciation, amortization and certain other non-cash charges) is 3.50 to 1.00, but this covenant is only tested from and after the date on which the Partnership issues qualified senior notes in an aggregate principal amount (when combined with all other qualified senior previously or concurrently issued) that equals or exceeds $200.0 million. | ||
The minimum permitted consolidated interest coverage ratio (as defined in the credit agreement, but generally computed as the ratio of consolidated earnings before interest, taxes, depreciation, amortization and certain other non-cash charges to consolidated interest expense) is 2.50 to 1.00. | ||
In addition, the credit agreement contains various covenants that, among other restrictions, limit the Partnership’s ability to: | ||
• | create, issue, incur or assume indebtedness; | |
• | create, incur or assume liens; | |
• | engage in mergers or acquisitions; | |
• | sell, transfer, assign or convey assets; | |
• | repurchase the Partnership’s equity, make distributions to unitholders and make certain other restricted payments; | |
• | make investments; | |
• | modify the terms of certain indebtedness, or prepay certain indebtedness; | |
• | engage in transactions with affiliates; | |
• | enter into certain hedging contracts; | |
• | enter into certain burdensome agreements; | |
• | change the nature of the Partnership’s business; | |
• | enter into operating leases; and | |
• | make certain amendments to the Partnership’s partnership agreement. | |
At September 30, 2013, the Partnership’s consolidated total leverage ratio was 3.67 to 1.00 and the consolidated interest coverage ratio was 7.61 to 1.00. The Partnership was in compliance with all covenants of its credit agreement as of September 30, 2013. | ||
The credit agreement permits the Partnership to make quarterly distributions of available cash (as defined in the Partnership’s partnership agreement) to unitholders so long as no default or event of default exists under the credit agreement on a pro forma basis after giving effect to such distribution. The Partnership is currently allowed to make distributions to its unitholders in accordance with this covenant; however, the Partnership will only make distributions to the extent it has sufficient cash from operations after establishment of cash reserves as determined by the Board of Directors (the “Board”) of Blueknight Energy Partners G.P., L.L.C. (the “General Partner”) in accordance with the Partnership’s cash distribution policy, including the establishment of any reserves for the proper conduct of the Partnership’s business. See Note 7 for additional information regarding distributions. | ||
Each of the following is an event of default under the credit agreement: | ||
• | failure to pay any principal, interest, fees, expenses or other amounts when due; | |
• | failure to meet the quarterly financial covenants; | |
• | failure to observe any other agreement, obligation or covenant in the new credit agreement or any related loan document, subject to cure periods for certain failures; | |
• | the failure of any representation or warranty to be materially true and correct when made; | |
• | the Partnership’s, or any of its restricted subsidiaries,’ default under other indebtedness that exceeds a threshold amount; | |
• | judgments against the Partnership or any of its restricted subsidiaries, in excess of a threshold amount; | |
• | certain ERISA events involving the Partnership or its restricted subsidiaries resulting in a material adverse effect on the Partnership; | |
• | bankruptcy or other insolvency events involving the General Partner, the Partnership or any of its restricted subsidiaries; and | |
• | a change of control (as defined in the credit agreement, but generally being (i) the General Partner ceasing to own 100% of the Partnership’s general partner interest or ceasing to control the Partnership, or (ii) Vitol Holding B.V. (together with its affiliates, “Vitol”) and Charlesbank Capital Partners, LLC ceasing to collectively own and control 50.0% or more of the membership interests of the General Partner). | |
If an event of default relating to bankruptcy or other insolvency events occurs with respect to the General Partner or the Partnership, all indebtedness under the credit agreement will immediately become due and payable. If any other event of default exists under the credit agreement, the lenders may accelerate the maturity of the obligations outstanding under the credit agreement and exercise other rights and remedies. In addition, if any event of default exists under the credit agreement, the lenders may commence foreclosure or other actions against the collateral. | ||
If any default occurs under the credit agreement, or if the Partnership is unable to make any of the representations and warranties in the credit agreement, the Partnership will be unable to borrow funds or have letters of credit issued under the credit agreement. | ||
Upon the execution of the amended and restated credit agreement, the Partnership expensed $1.8 million of debt issuance costs related to the extinguished term loan, and the Partnership expensed $0.2 million in debt issuance costs related to its revolving loan facility, leaving a remaining balance of $0.5 million ascribed to those lenders with commitments under both the prior and the amended and restated credit facility. During the nine months ended September 30, 2013, the Partnership capitalized debt issuance costs of $0.2 million related to the prior credit facility and $3.4 million related to the current credit facility. The Partnership did not incur any debt issuance costs in the nine months ended September 30, 2012. The debt issuance costs are being amortized over the term of the amended and restated credit agreement. Interest expense related to debt issuance cost amortization for the three months ended September 30, 2012 and 2013 was $0.4 million and $0.2 million, respectively, and for the nine months ended September 30, 2012 and 2013 was $1.3 million and $3.1 million, respectively. | ||
During the three months ended September 30, 2012 and 2013, the weighted average interest rate under the Partnership's credit agreement was 5.15% and 3.18%, respectively, resulting in interest expense of approximately $2.8 million and $2.2 million, respectively. During the nine months ended September 30, 2012 and 2013, the weighted average interest rate under the Partnership's credit agreement, excluding the $2.0 million of debt issuance costs related to the prior credit facility that was expensed in the nine months ended September 30, 2013, was 5.24% and 4.39%, respectively, resulting in interest expense of approximately $8.6 million and $8.2 million, respectively. As of September 30, 2013, borrowings under the Partnership’s amended and restated credit agreement bore interest at a weighted average interest rate of 3.14%. | ||
During the three months ended September 30, 2012 and 2013, the Partnership capitalized interest of less than $0.1 million and $0.3 million, respectively. During the nine months ended September 30, 2012 and 2013, the Partnership capitalized interest of $0.1 million and $1.0 million, respectively. |
PROPERTY_PLANT_AND_EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||||
PROPERTY, PLANT AND EQUIPMENT | ' | |||||||||
Estimated Useful Lives (Years) | December 31, 2012 | September 30, 2013 | ||||||||
(dollars in thousands) | ||||||||||
Land | N/A | $ | 16,405 | $ | 16,532 | |||||
Land improvements | 20-Oct | 6,287 | 6,296 | |||||||
Pipelines and facilities | 30-May | 101,392 | 126,004 | |||||||
Storage and terminal facilities | Oct-35 | 232,102 | 235,240 | |||||||
Transportation equipment | 10-Mar | 18,003 | 18,139 | |||||||
Office property and equipment and other | 20-Mar | 26,009 | 27,018 | |||||||
Pipeline linefill and tank bottoms | N/A | 5,993 | 10,193 | |||||||
Construction-in-progress | N/A | 14,766 | 39,122 | |||||||
Property, plant and equipment, gross | 420,957 | 478,544 | ||||||||
Accumulated depreciation and impairments | (153,216 | ) | (173,429 | ) | ||||||
Property, plant and equipment, net | $ | 267,741 | $ | 305,115 | ||||||
Depreciation expense for the three months ended September 30, 2012 and 2013 was $5.8 million and $6.1 million, respectively, and depreciation expense for the nine months ended September 30, 2012 and 2013 was $17.1 million and $17.8 million, respectively. In the nine months ended September 30, 2012, the Partnership recorded asset impairment expense of $1.2 million related to its pipelines and facilities. In the three and nine months ended September 30, 2013, the Partnership recorded asset impairment expense of $5.9 million related to its pipelines and facilities, $5.7 million of which relates to its Thompson pipeline system located in southern Texas. |
NET_INCOME_PER_LIMITED_PARTNER
NET INCOME PER LIMITED PARTNER UNIT | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
NET INCOME PER LIMITED PARTNER UNIT | ' | |||||||||||||||
For purposes of calculating earnings per unit, the excess of distributions over earnings or excess of earnings over distributions for each period are allocated to the entities’ general partner based on the general partner’s ownership interest at the time. The following sets forth the computation of basic and diluted net income per common unit (in thousands, except per unit data): | ||||||||||||||||
Three Months ended September 30, | Nine Months ended September 30, | |||||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||||
Net income | $ | 7,907 | $ | 10,541 | $ | 26,048 | $ | 22,729 | ||||||||
General partner interest in net income | 165 | 220 | 659 | 537 | ||||||||||||
Preferred interest in net income | 5,391 | 5,391 | 16,173 | 16,173 | ||||||||||||
Beneficial conversion feature attributable to preferred units | — | — | 1,853 | — | ||||||||||||
Income available to limited partners | $ | 2,351 | $ | 4,930 | $ | 7,363 | $ | 6,019 | ||||||||
Basic weighted average number of units: | ||||||||||||||||
Common units | 22,670 | 22,697 | 22,666 | 22,684 | ||||||||||||
Restricted and phantom units | 617 | 699 | 550 | 667 | ||||||||||||
Diluted weighted average number of units: | ||||||||||||||||
Common units | 22,670 | 53,718 | 22,666 | 22,684 | ||||||||||||
Basic net income per common unit | $ | 0.1 | $ | 0.21 | $ | 0.32 | $ | 0.26 | ||||||||
Diluted net income per common unit | $ | 0.1 | $ | 0.19 | $ | 0.32 | $ | 0.26 | ||||||||
DISTRIBUTIONS
DISTRIBUTIONS | 9 Months Ended |
Sep. 30, 2013 | |
Partners' Capital Account, Distributions [Abstract] | ' |
DISTRIBUTIONS | ' |
On October 24, 2013, the Board approved a distribution of $0.17875 per Preferred Unit, or a total distribution of $5.4 million, for the quarter ending September 30, 2013. The Partnership will pay this distribution on the preferred units on November 14, 2013 to unitholders of record as of November 4, 2013. | |
In addition, the Board declared a cash distribution of $0.1225 per unit on its outstanding common units, a 2.1% increase over the previous quarter’s distribution. The distribution will be paid on November 14, 2013 to unitholders of record on November 4, 2013. The distribution is for the three months ended September 30, 2013. The total distribution will be approximately $2.9 million, with approximately $2.8 million and less than $0.1 million to be paid to the Partnership’s common unitholders and general partner, respectively, and $0.1 million to be paid to holders of phantom and restricted units pursuant to awards granted under the Partnership’s long-term incentive plan. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions [Abstract] | ' |
RELATED PARTY TRANSACTIONS | ' |
The Partnership provides crude oil gathering, transportation, terminalling and storage services to Vitol. For the three months ended September 30, 2012 and 2013, the Partnership recognized revenues of $12.3 million and $15.1 million, respectively, for services provided to Vitol. For the nine months ended September 30, 2012 and 2013, the Partnership recognized revenues of $34.6 million and $39.0 million, respectively, for services provided to Vitol. As of December 31, 2012 and September 30, 2013, the Partnership had receivables from Vitol of $3.1 million and $5.8 million, respectively. | |
The Partnership also provides operating and administrative services to Advantage Pipeline. For each of the three and nine months ended September 30, 2013, the Partnership recognized revenues of $0.3 million, for services provided to Advantage Pipeline. | |
The Partnership also had a receivable from its General Partner of $0.5 million as of December 31, 2012. | |
Vitol Omnibus Agreement | |
On February 15, 2010, the Partnership entered into an Omnibus Agreement (the “Vitol Omnibus Agreement”) with Vitol. Pursuant to the Vitol Omnibus Agreement, the Partnership agreed to provide certain of its employees, consultants and agents (the “Designated Persons”) to Vitol for use by Vitol’s crude oil marketing division. In return, Vitol agreed to reimburse the Partnership in an amount equal to (i) the wages, salaries, bonuses, make whole payments, payroll taxes and the cost of all employee benefits of each Designated Person, in each case as adjusted to properly reflect the time spent by such Designated Person in the performance services for Vitol, (ii) all direct expenses, including, without limitation, any travel and entertainment expenses, incurred by each Designated Person in connection with such Designated Person’s provision of services for Vitol, (iii) a monthly charge of $1,500.00 per Designated Person for each Designated Person that performs services for Vitol during any portion of such month, plus (iv) the sum of subsections (i) through (iii) above multiplied by 0.10. In addition, the Vitol Omnibus Agreement provides that if during any month any Designated Person has spent more than 80% of his time performing services for Vitol, then Vitol will have the right for the succeeding three months to request that such individual be transitioned directly to the employment of Vitol. The Vitol Omnibus Agreement was reviewed and approved by the Board’s conflicts committee in accordance with the Partnership’s procedures for approval of related party transactions and the provisions of the Partnership’s partnership agreement. During the nine months ended September 30, 2012 the Partnership received payments of $0.1 million pursuant to the Vitol Omnibus Agreement. The Partnership and Vitol terminated the Vitol Omnibus Agreement on March 27, 2012. | |
Vitol Storage Agreements | |
In connection with the Partnership’s acquisition of certain of its crude oil storage assets from SemGroup Corporation (“SemCorp”) in May 2008, the Partnership was assigned from SemCorp a storage agreement with Vitol under which the Partnership provided crude oil storage services to Vitol (the “2008 Vitol Storage Agreement”). The initial term of the 2008 Vitol Storage Agreement was from June 1, 2008 through June 30, 2010. This agreement was amended in 2010 to extend the term of the agreement until June 1, 2011 and again in 2011 to extend the term of the agreement to June 1, 2012. Because Vitol was a third party (and not a related or affiliated party) at the time of entering into the 2008 Vitol Storage Agreement, such agreement was not approved by the Board or the Board’s conflicts committee in accordance with the Partnership’s procedures for approval of related party transactions. Vitol became a related party when it acquired the General Partner in November 2009 (the “Vitol Change of Control”). Since the amendments occurred subsequent to the Vitol Change of Control, they were reviewed and approved by the Board’s conflicts committee in accordance with the Partnership’s procedures for approval of related party transactions and the provisions of the partnership agreement. The Partnership earned revenues of approximately $5.5 million from Vitol with respect to services provided pursuant to the 2008 Vitol Storage Agreement for the nine months ended September 30, 2012. The 2008 Vitol Storage Agreement expired according to its terms on June 1, 2012. The Partnership believes that the rates it charged Vitol under the 2008 Vitol Storage Agreement were fair and reasonable to the Partnership and its unitholders and were comparable with the rates the Partnership charged third parties. | |
In March 2010, the Partnership entered into a second crude oil storage services agreement with Vitol under which the Partnership began providing additional crude oil storage services to Vitol effective May 1, 2010 (the “2010 Vitol Storage Agreement”). The initial term of the 2010 Vitol Storage Agreement is five years commencing on May 1, 2010, subject to automatic renewal periods for successive one year periods until terminated by either party with ninety days prior notice. The 2010 Vitol Storage Agreement was reviewed and approved by the Board’s conflicts committee in accordance with the Partnership’s procedures for approval of related party transactions and the provisions of the partnership agreement. Service revenues under the 2010 Vitol Storage Agreement are based on the 2.0 million barrels of storage capacity of the crude oil storage tanks that are dedicated to Vitol under the agreement. The Partnership generated revenues under this agreement of approximately $2.8 million and $2.2 million during the three months ended September 30, 2012 and 2013, respectively. The Partnership generated revenues under this agreement of approximately $8.7 million and $6.9 million during the nine months ended September 30, 2012 and 2013, respectively. In March 2013, the 2010 Vitol Storage Agreement was amended to adjust the rates the Partnership charges Vitol for services provided under the agreement. The Partnership believes that the rates it charges Vitol under the 2010 Vitol Storage Agreement are fair and reasonable to the Partnership and its unitholders and are comparable with the rates the Partnership charges third parties. | |
In 2012, The Partnership entered into three new crude oil storage services agreements with Vitol, the “2012 Vitol 12-month Storage Agreement” and the “2012 Vitol 6-month Storage Agreement,” which became effective June 1, 2012, and the “Vitol September 2012 Storage Agreement,” which became effective September 1, 2012. The Partnership believes that the rates it charges Vitol under each of these agreements, as amended, are fair and reasonable to the Partnership and its unitholders and are comparable with the rates the Partnership charges third parties. The Board’s conflicts committee reviewed and approved each of these agreements and each of the amendments described below in accordance with the Partnership’s procedures for approval of related party transactions and the provisions of the partnership agreement. | |
Service revenues under the 2012 Vitol 12-month Storage Agreement are based on the 1.0 million barrels of storage capacity of the crude oil storage tanks that are dedicated to Vitol under the agreement. The initial term of the 2012 Vitol 12-month Storage Agreement was from June 1, 2012 through May 31, 2013. In March 2013, the 2012 Vitol 12-month Storage Agreement was amended to extend the term through March 31, 2014 and to adjust the rates the Partnership charges Vitol for services provided under the agreement. The Partnership generated revenues under this agreement of approximately $1.4 million and $1.8 million, respectively, for the three and nine months ended September 30, 2012. The Partnership generated revenues under this agreement of approximately $1.0 million and $3.3 million for the three and nine months ended September 30, 2013, respectively. | |
Service revenues under the 2012 Vitol 6-month Storage Agreement are based on the 0.5 million barrels of storage capacity of the crude oil storage tanks that are dedicated to Vitol under the agreement. The initial term of the 2012 Vitol 6-month Storage Agreement was from June 1, 2012 through November 30, 2012. Upon expiration of the initial term, this agreement became subject to a rolling 90 day cancellation notice. In March 2013, the 2012 Vitol 6-month Storage Agreement was amended to extend the term through October 31, 2013 and to adjust the rates the Partnership charges Vitol for services provided under the agreement. In October 2013, the 2012 Vitol 6-month Storage Agreement was amended to extend the term through March 31, 2014 and to adjust the rates the Partnership charges Vitol for services provided under the agreement effective as of November 1, 2013. The Partnership generated revenues under this agreement of approximately $0.7 million and $0.9 million, respectively, for the three and nine months ended September 30, 2012. The Partnership generated revenues under this agreement of approximately $0.5 million and $1.7 million for the three and nine months ended September 30, 2013, respectively. | |
Service revenues under the Vitol September 2012 Storage Agreement are based on the 0.5 million barrels of storage capacity of the crude oil storage tanks that are dedicated to Vitol under the agreement. The initial term of the Vitol September 2012 Storage Agreement was from September 1, 2012 to February 28, 2013. In March 2013, the Vitol September 2012 Storage Agreement was amended to extend the term through October 31, 2013 and to adjust the rates the Partnership charges Vitol for services provided under the agreement. In October 2013, the Vitol September 2012 Storage Agreement was amended to extend the term through March 31, 2014 and to adjust the rates the Partnership charges Vitol for services provided under the agreement effective as of November 1, 2013. The Partnership generated revenues under this agreement of approximately $0.2 million for each of the three and nine months ended September 30, 2012. The Partnership generated revenues under this agreement of approximately $0.5 million and $1.7 million for the three and nine months ended September 30, 2013, respectively. | |
Vitol Throughput Capacity Agreement | |
In August 2010, the Partnership and Vitol entered into a Throughput Capacity Agreement (the “ENPS Throughput Agreement”). Pursuant to the ENPS Throughput Agreement, Vitol purchased 100% of the throughput capacity on the Partnership’s Eagle North Pipeline System (“ENPS”). The Partnership put ENPS in service in December 2010. In September 2010, Vitol paid the Partnership a prepaid fee equal to $5.5 million, and Vitol agreed to pay additional usage fees for every barrel delivered by or on behalf of Vitol on ENPS. This $5.5 million fee received from Vitol was accounted for as a long-term payable to a related party. In addition, if the payments made by Vitol in any contract year under the ENPS Throughput Agreement were in the aggregate less than $2.4 million, then Vitol was obligated to pay the Partnership a deficiency payment equal to $2.4 million minus the aggregate amount of all payments made by Vitol during such contract year. In March 2012, the Partnership received a deficiency payment of $0.3 million from Vitol in relation to the 2011 contract year. In February 2013, the Partnership received a deficiency payment of $0.2 million from Vitol in relation to the 2012 contract year. The ENPS Throughput Agreement was approved by the Board’s conflicts committee in accordance with the Partnership’s procedures for approval of related party transactions and the provisions of its partnership agreement. | |
During the three and nine months ended September 30, 2012, the Partnership incurred interest expense under this agreement of approximately $0.1 million and $0.4 million, respectively. During the nine months ended September 30, 2013, the Partnership incurred interest expense under this agreement of approximately $0.1 million. The agreement had an effective annual interest rate of 14.1%. In April 2013, the Partnership repurchased 100% of the throughput capacity on ENPS from Vitol for $2.5 million, and the ENPS Throughput Agreement was terminated. | |
Vitol Operating and Maintenance Agreement | |
In August 2011, the Partnership and Vitol entered into an operating and maintenance agreement (the “Vitol O&M Agreement”) relating to the operation and maintenance of Vitol’s crude oil terminal located in Midland, Texas (the “Midland Terminal”). Pursuant to the Vitol O&M Agreement, the Partnership provides certain operating and maintenance services with respect to the Midland Terminal. The term of the Vitol O&M Agreement commenced on September 1, 2012 and will continue for five years. During the three and nine months ended September 30, 2012, the Partnership generated revenues of $0.1 million under this agreement. During the three and nine months ended September 30, 2013, the Partnership generated revenues of $0.2 million and $0.5 million, respectively, under the Vitol O&M Agreement. The Partnership believes that the rates it charges Vitol under the Vitol O&M Agreement are fair and reasonable to the Partnership and its unitholders and are comparable with the rates the Partnership charges third parties. The Board’s conflicts committee reviewed and approved the Vitol O&M Agreement in accordance with the Partnership’s procedures for approval of related party transactions and the provisions of the partnership agreement. | |
Vitol Shared Services Agreement | |
In August 2012, the Partnership and Vitol entered into a shared services agreement (the “Vitol Shared Services Agreement”) pursuant to which the Partnership provides Vitol certain strategic assessment, economic evaluation and project design services. The original term of the Vitol Shared Services Agreement commenced on August 1, 2012 and continued for one year. In August 2013, the term of the Vitol Shared Services Agreement was automatically renewed for one year. The Vitol Shared Services Agreement renews annually unless terminated by either party as provided in the agreement. For the three and nine months ended September 30, 2012, the Partnership generated revenues of $0.3 million, under the Vitol Shared Services Agreement. During the three and nine months ended September 30, 2013, the Partnership generated revenues of less than $0.1 million and $0.1 million, respectively, under the Vitol Shared Services Agreement. The Partnership believes that the rates it charges Vitol under the Vitol Shared Services Agreement are fair and reasonable to the Partnership and its unitholders. The Board’s conflicts committee reviewed and approved the Vitol Shared Services Agreement in accordance with the Partnership’s procedures for approval of related party transactions and the provisions of the partnership agreement. | |
Vitol’s Commitment under the Partnership’s Credit Agreement | |
Vitol was a lender under the Partnership’s prior credit agreement and committed to loan the Partnership $15.0 million pursuant to such agreement. During the nine months ended September 30, 2013, Vitol received its pro rata portion of the interest payments in connection with being a lender under the credit agreement and received approximately $0.3 million in connection therewith. During the three and nine months ended September 30, 2012, Vitol received interest payments of approximately $0.2 million and $0.5 million, respectively. Vitol is not a lender under the Partnership’s amended and restated credit agreement. | |
Advantage Pipeline Operating and Administrative Services Agreement | |
In January 2013, the Partnership and Advantage Pipeline entered into an operating and administrative services agreement (the “Advantage O&A Services Agreement”) pursuant to which the Partnership will operate Advantage Pipeline’s Pecos River Pipeline in west Texas. Under the Advantage O&A Services Agreement, the Partnership will also provide certain administrative services to Advantage Pipeline. The initial term of the Advantage O&A Services Agreement commenced on January 31, 2013 and shall continue for ten years, with the Partnership and Advantage Pipeline each having an option to extend the term for an additional five years. During the three and nine months ended September 30, 2013, the Partnership earned revenues of $0.1 million and $0.2 million, respectively, under this agreement. |
LONGTERM_INCENTIVE_PLAN
LONG-TERM INCENTIVE PLAN | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||
LONG-TERM INCENTIVE PLAN | ' | ||||||
In July 2007, the General Partner adopted the Long-Term Incentive Plan (the “LTIP”). The compensation committee of the Board administers the LTIP. The LTIP authorizes the grant of an aggregate of 2.6 million common units deliverable upon vesting. Although other types of awards are contemplated under the LTIP, currently outstanding awards include “phantom” units, which convey the right to receive common units upon vesting, and “restricted” units, which are grants of common units restricted until the time of vesting. Certain of the phantom unit awards also include distribution equivalent rights (“DERs”). | |||||||
Subject to applicable earning criteria, a DER entitles the grantee to a cash payment equal to the cash distribution paid on an outstanding common unit prior to the vesting date of the underlying award. Recipients of restricted units are entitled to receive cash distributions paid on common units during the vesting period which distributions are reflected initially as a reduction of partners’ capital. Distributions paid on units which ultimately do not vest are reclassified as compensation expense. Awards granted to date are equity awards and, accordingly, the fair value of the awards as of the grant date is expensed over the vesting period. | |||||||
In each of December 2010, 2011 and 2012, 7,500 restricted common units were granted which vest in one-third increments over three years. These grants were made in connection with the anniversary of the independent directors joining the Board. The fair value of the restricted units for each of these grants was less than $0.1 million. | |||||||
In March 2011, 2012 and 2013, grants for 299,900, 353,300 and 251,106 phantom units, respectively, were made, which vest on January 1, 2014, January 1, 2015 and January 1, 2016, respectively. These grants are equity awards under ASC 718 – Stock Compensation, and, accordingly, the fair value of the awards as of the grant date is expensed over the vesting period. The weighted average grant date fair-value of the awards is $8.25, $6.76 and $8.75 per unit, respectively, which is the closing market price on the grant date of the awards. The value of these award grants was approximately $2.5 million, $2.4 million and $2.2 million, respectively, on their grant date. In June 2013, grants of 1,300 phantom units that will vest on January 1, 2014 and 3,500 units that will vest on January 1, 2015 were made. The weighted average grant date fair-value of the awards is $8.40, which is the closing market price on the grant date. The value of these award grants was $40,320. The unrecognized estimated compensation cost of outstanding phantom units at September 30, 2013 was $1.8 million, which will be recognized over the remaining vesting period. As of September 30, 2013, the Partnership expects approximately 74% of these awards will vest. | |||||||
In September 2012, Mark Hurley was granted 500,000 phantom units under the LTIP upon his employment as the Chief Executive Officer of the General Partner. These grants are equity awards under ASC 718 – Stock Compensation, and, accordingly, the fair value of the awards as of the grant date is expensed over the vesting period. These units vest ratably over five years pursuant to the Employee Phantom Unit Agreement between Mr. Hurley and the General Partner and do not include DERs. The weighted average grant date fair value for the units of $5.62 was determined based on the closing market price of the Partnership’s common units on the grant date of the award, less the present value of the estimated distributions to be paid to holders of an outstanding common unit prior to the vesting of the underlying award. The value of this award grant was approximately $2.8 million on the grant date, and the unrecognized estimated compensation cost at September 30, 2013 was $2.2 million and will be expensed over the remaining vesting period. | |||||||
The Partnership’s equity-based incentive compensation expense for the three months ended September 30, 2012 and 2013 was $0.4 million and $0.5 million, respectively, and for the nine months ended September 30, 2012 and 2013 was $1.1 million and $1.5 million, respectively. | |||||||
Activity pertaining to phantom common units and restricted common unit awards granted under the Plan is as follows: | |||||||
Number of Units | Weighted Average Grant Date Fair Value | ||||||
Nonvested at December 31, 2012 | 1,016,703 | $ | 6.51 | ||||
Granted | 255,906 | 8.74 | |||||
Vested | 151,086 | 6.3 | |||||
Forfeited | 47,857 | 7.69 | |||||
Nonvested at September 30, 2013 | 1,073,666 | $ | 7.02 | ||||
EMPLOYEE_BENEFIT_PLAN
EMPLOYEE BENEFIT PLAN | 9 Months Ended |
Sep. 30, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
EMPLOYEE BENEFIT PLAN | ' |
Under the Partnership’s 401(k) Plan, which was instituted in 2009, employees who meet specified service requirements may contribute a percentage of their total compensation, up to a specified maximum, to the 401(k) Plan. The Partnership may match each employee’s contribution, up to a specified maximum, in full or on a partial basis. The Partnership recognized expense of $0.3 million for the each of the three months ended September 30, 2012 and 2013 for discretionary contributions under the 401(k) Plan. The Partnership recognized expense of $1.0 million for each of the nine months ended September 30, 2012 and 2013 for discretionary contributions under the 401(k) Plan. | |
The Partnership may also make annual lump-sum contributions to the 401(k) Plan irrespective of the employee’s contribution match. The Partnership may make a discretionary annual contribution in the form of profit sharing calculated as a percentage of an employee’s eligible compensation. This contribution is retirement income under the qualified 401(k) Plan. Annual profit sharing contributions to the 401(k) Plan are submitted to and approved by the Board. The Partnership recognized expense of $0.2 million for each of the three months ended September 30, 2012 and 2013, for discretionary profit sharing contributions under the 401(k) Plan. The Partnership recognized expense of $0.7 million and $0.8 million for the nine months ended September 30, 2012 and 2013, respectively, for discretionary profit sharing contributions under the 401(k) Plan. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended | |
Sep. 30, 2013 | ||
Fair Value Disclosures [Abstract] | ' | |
FAIR VALUE MEASUREMENTS | ' | |
FAIR VALUE MEASUREMENTS | ||
The Partnership utilizes a three-tier framework for assets and liabilities required to be measured at fair value. In addition, the Partnership uses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost) to value these assets and liabilities as appropriate. The Partnership uses an exit price when determining the fair value. The exit price represents amounts that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. | ||
The Partnership utilizes a three-tier fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: | ||
Level 1 | Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. | |
Level 2 | Inputs other than quoted prices that are observable for these assets or liabilities, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. | |
Level 3 | Unobservable inputs in which there is little market data, which requires the reporting entity to develop its own assumptions | |
This hierarchy requires the use of observable market data, when available, to minimize the use of unobservable inputs when determining fair value. | ||
The Partnership had no recurring financial assets or liabilities subject to fair value measurements as of December 31, 2012 or September 30, 2013. | ||
Fair Value of Other Financial Instruments | ||
The following disclosure of the estimated fair value of financial instruments is made in accordance with accounting guidance for financial instruments. The Partnership has determined the estimated fair values by using available market information and valuation methodologies. Considerable judgment is required in interpreting market data to develop the estimates of fair value. The use of different market assumptions or valuation methodologies may have a material effect on the estimated fair value amounts. | ||
At September 30, 2013, the carrying values on the condensed consolidated balance sheets for cash and cash equivalents (classified as Level 1), accounts receivable and accounts payable approximate their fair value because of their short term nature. | ||
Based on the borrowing rates currently available to the Partnership for credit agreement debt with similar terms and maturities and consideration of the Partnership’s non-performance risk, long-term debt associated with the Partnership’s credit agreement at September 30, 2013 approximates its fair value. The fair value of the Partnership’s long-term debt was calculated using observable inputs (LIBOR for the risk free component) and unobservable company-specific credit spread information. As such, the Partnership considers this debt to be Level 3. |
OPERATING_SEGMENTS
OPERATING SEGMENTS | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||
OPERATING SEGMENTS | ' | |||||||||||||||||||
OPERATING SEGMENTS | ||||||||||||||||||||
The Partnership’s operations consist of four operating segments: (i) crude oil terminalling and storage services, (ii) crude oil pipeline services, (iii) crude oil trucking and producer field services, and (iv) asphalt services. | ||||||||||||||||||||
CRUDE OIL TERMINALLING AND STORAGE SERVICES —The Partnership provides crude oil terminalling and storage services at its terminalling and storage facilities located in Oklahoma and Texas. | ||||||||||||||||||||
CRUDE OIL PIPELINE SERVICES —The Partnership owns and operates three pipeline systems, the Mid-Continent system, the Longview system and ENPS, that gather crude oil purchased by its customers and transports it to refiners, to common carrier pipelines for ultimate delivery to refiners or to terminalling and storage facilities owned by the Partnership and others. The Partnership refers to its pipeline system located in Oklahoma and the Texas Panhandle as the Mid-Continent system. It refers to its second pipeline system, which is located in Texas, as the Longview system. The Partnership refers to its third system, originating in Cushing, Oklahoma and terminating in Ardmore, Oklahoma, as ENPS. | ||||||||||||||||||||
CRUDE OIL TRUCKING AND PRODUCER FIELD SERVICES — The Partnership uses its owned and leased tanker trucks to gather crude oil for its customers at remote wellhead locations generally not covered by pipeline and gathering systems and to transport the crude oil to aggregation points and storage facilities located along pipeline gathering and transportation systems. Crude oil producer field services consist of a number of producer field services, ranging from gathering condensates from natural gas companies to hauling produced water to disposal wells. | ||||||||||||||||||||
ASPHALT SERVICES —The Partnership provides asphalt product and residual fuel terminalling, storage and blending services at its 44 terminalling and storage facilities located in twenty-two states. | ||||||||||||||||||||
The Partnership’s management evaluates performance based upon segment operating margin, which includes revenues from related parties and external customers and operating expenses excluding depreciation and amortization. The non-GAAP measure of operating margin (in the aggregate and by segment) is presented in the following table. The Partnership computes the components of operating margin by using amounts that are determined in accordance with GAAP. A reconciliation of operating margin to income before income taxes, which is its nearest comparable GAAP financial measure, is included in the following table. The Partnership believes that investors benefit from having access to the same financial measures being utilized by management. Operating margin is an important measure of the economic performance of the Partnership’s core operations. This measure forms the basis of the Partnership’s internal financial reporting and is used by its management in deciding how to allocate capital resources among segments. Income before income taxes, alternatively, includes expense items, such as depreciation and amortization, general and administrative expenses and interest expense, which management does not consider when evaluating the core profitability of the Partnership’s operations. | ||||||||||||||||||||
The following table reflects certain financial data for each segment for the periods indicated (in thousands): | ||||||||||||||||||||
Crude Oil Terminalling | Crude Oil | Crude Oil | Asphalt | Total | ||||||||||||||||
and Storage Services | Pipeline | Trucking and | Services | |||||||||||||||||
Services | Producer Field | |||||||||||||||||||
Services | ||||||||||||||||||||
Three months ended September 30, 2012 | ||||||||||||||||||||
Service revenue | ||||||||||||||||||||
Third party revenue | $ | 3,278 | $ | 4,216 | $ | 10,722 | $ | 16,581 | $ | 34,797 | ||||||||||
Related party revenue | 5,260 | 1,742 | 5,195 | 132 | 12,329 | |||||||||||||||
Total revenue for reportable segments | 8,538 | 5,958 | 15,917 | 16,713 | 47,126 | |||||||||||||||
Operating expenses (excluding depreciation and amortization) | 973 | 4,765 | 14,424 | 6,073 | 26,235 | |||||||||||||||
Operating margin (excluding depreciation and amortization) | 7,565 | 1,193 | 1,493 | 10,640 | 20,891 | |||||||||||||||
Total assets (end of period) | 68,870 | 99,619 | 19,323 | 112,745 | 300,557 | |||||||||||||||
Three months ended September 30, 2013 | ||||||||||||||||||||
Service revenue | ||||||||||||||||||||
Third party revenue | $ | 3,216 | $ | 6,910 | $ | 11,711 | $ | 18,007 | $ | 39,844 | ||||||||||
Related party revenue | 4,477 | 4,807 | 5,805 | 310 | 15,399 | |||||||||||||||
Total revenue for reportable segments | 7,693 | 11,717 | 17,516 | 18,317 | 55,243 | |||||||||||||||
Operating expenses (excluding depreciation and amortization) | 1,068 | 4,305 | 15,226 | 5,922 | 26,521 | |||||||||||||||
Operating margin (excluding depreciation and amortization)(1) | 6,625 | 7,412 | 2,290 | 12,395 | 28,722 | |||||||||||||||
Total assets (end of period) | 65,314 | 175,476 | 20,446 | 101,215 | 362,451 | |||||||||||||||
Nine months ended September 30, 2012 | ||||||||||||||||||||
Service revenue | ||||||||||||||||||||
Third party revenue | $ | 9,009 | $ | 12,274 | $ | 35,202 | $ | 44,359 | $ | 100,844 | ||||||||||
Related party revenue | 18,153 | 4,252 | 11,754 | 457 | 34,616 | |||||||||||||||
Total revenue for reportable segments | 27,162 | 16,526 | 46,956 | 44,816 | 135,460 | |||||||||||||||
Operating expenses (excluding depreciation and amortization) | 2,698 | 12,634 | 40,700 | 17,554 | 73,586 | |||||||||||||||
Operating margin (excluding depreciation and amortization)(1) | 24,464 | 3,892 | 6,256 | 27,262 | 61,874 | |||||||||||||||
Total assets (end of period) | 68,870 | 99,619 | 19,323 | 112,745 | 300,557 | |||||||||||||||
Nine months ended September 30, 2013 | ||||||||||||||||||||
Service revenue | ||||||||||||||||||||
Third party revenue | $ | 9,149 | $ | 14,432 | $ | 36,085 | $ | 48,078 | $ | 107,744 | ||||||||||
Related party revenue | 14,495 | 7,179 | 16,370 | 1,337 | 39,381 | |||||||||||||||
Total revenue for reportable segments | 23,644 | 21,611 | 52,455 | 49,415 | 147,125 | |||||||||||||||
Operating expenses (excluding depreciation and amortization) | 2,872 | 11,801 | 45,469 | 18,549 | 78,691 | |||||||||||||||
Operating margin (excluding depreciation and amortization)(1) | 20,772 | 9,810 | 6,986 | 30,866 | 68,434 | |||||||||||||||
Total assets (end of period) | 65,314 | 175,476 | 20,446 | 101,215 | 362,451 | |||||||||||||||
____________________ | ||||||||||||||||||||
-1 | The following table reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes (in thousands): | |||||||||||||||||||
Three Months ended September 30, | Nine Months ended September 30, | |||||||||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||||||||
Operating margin (excluding depreciation and amortization) | $ | 20,891 | $ | 28,722 | $ | 61,874 | $ | 68,434 | ||||||||||||
Depreciation and amortization | (5,792 | ) | (6,078 | ) | (17,174 | ) | (17,812 | ) | ||||||||||||
General and administrative expenses | (4,119 | ) | (4,649 | ) | (13,608 | ) | (13,806 | ) | ||||||||||||
Gain on sale of assets | 46 | 734 | 5,265 | 1,732 | ||||||||||||||||
Asset impairment expense | (95 | ) | (5,855 | ) | (1,168 | ) | (5,855 | ) | ||||||||||||
Interest expense | (2,909 | ) | (1,897 | ) | (8,877 | ) | (9,188 | ) | ||||||||||||
Equity earnings (loss) in unconsolidated entity | — | (151 | ) | — | (325 | ) | ||||||||||||||
Income before income taxes | $ | 8,022 | $ | 10,826 | $ | 26,312 | $ | 23,180 | ||||||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
COMMITMENT AND CONTINGENCIES | ' |
The Partnership is from time to time subject to various legal actions and claims incidental to its business. Management believes that these legal proceedings will not have a material adverse effect on the financial position, results of operations or cash flows of the Partnership. Once management determines that information pertaining to a legal proceeding indicates that it is probable that a liability has been incurred and the amount of such liability can be reasonably estimated, an accrual is established equal to its estimate of the likely exposure. As of September 30, 2013, the Partnership has accrued contingent liabilities in the amount of $0.7 million. | |
On October 27, 2008, Keystone Gas Company (“Keystone”) filed suit against the Partnership in Oklahoma State District Court in Creek County alleging that it is the rightful owner of certain segments of the Partnership’s pipelines and related rights of way, located in Payne and Creek Counties, that the Partnership acquired from SemCorp in connection with the Partnership’s initial public offering in 2007. Keystone seeks to quiet title to the specified rights of way and pipelines and seeks damages up to the net profits derived from the disputed pipelines. There has been no determination of the extent of potential damages for the Partnership’s use of such pipelines. The Partnership has filed a counterclaim against Keystone alleging that it is wrongfully using a segment of a pipeline that is owned by the Partnership in Payne and Creek Counties. The parties are engaged in discovery. The Partnership intends to vigorously defend these claims. No trial date has been set by the court. | |
In March and April 2009, nine current or former executives (the “Claimants”) of SemCorp and certain of its affiliates filed wage claims with the Oklahoma Department of Labor against the General Partner. Their claims arise from the General Partner’s Long-Term Incentive Plan, Employee Phantom Unit Agreement (“Phantom Unit Agreement”). Most claimants alleged that phantom units previously awarded to them vested upon the change of control that occurred in July 2008. One claimant alleged that his phantom units vested upon his termination. The claimants contended the General Partner’s failure to deliver certificates for the phantom units within 60 days after vesting caused them to be damaged, and they sought recovery of approximately $2.0 million in damages and penalties. In September 2013, this matter was settled on favorable terms to the Partnership, and it did not have a material adverse effect on the Partnership's financial condition or results of operations. | |
On February 13, 2013, the Partnership filed suit against Koch Industries, Inc. (together with certain of its subsidiaries, “Koch”), a previous owner of the Partnership’s asphalt facility located in Northumberland, Pennsylvania. The suit was filed in the United States District Court for the Middle District of Pennsylvania. The Partnership sought a declaration that Koch is responsible for any assessment and cleanup costs related to certain environmental liabilities. Koch brought counter claims and took the position that the Partnership has the responsibility to assess the polychlorinated biphenyl (“PCB”) contamination at such facility although the contamination occurred prior to the Partnership becoming the owner of such facility. To avoid the expense and uncertainty of litigation, in November 2013, the Partnership and Koch executed a settlement agreement for this matter. As a condition of the settlement, Koch will indemnify the Partnership and its tenant at this facility from and against any and all liabilities or lawsuits arising from or relating to the asphalt facility located in Northumberland, Pennsylvania. In connection with the settlement, the Partnership is conveying title to the asphalt facility to Koch, and Koch will be responsible for any assessment and cleanup costs related to PCB liabilities associated with this facility. The settlement is expected to close in the fourth quarter of 2013. The settlement of this matter is not expected to have a material adverse effect on the Partnership’s financial condition or results of operation. | |
On February 6, 2012, the Partnership filed suit against SemCorp and others in Oklahoma County District Court. In the suit, the Partnership is seeking a judgment that SemCorp immediately return approximately 140,000 barrels of crude oil linefill belonging to the Partnership, and the Partnership is seeking judgment in an amount in excess of $75,000 for actual damages, special damages, punitive damages, pre-judgment interest, reasonable attorney’s fees and costs, and such other relief that the Court deems equitable and just. On March 22, 2012, SemCorp filed a motion to dismiss and transfer to Tulsa County. On April 18, 2012, SemCorp filed a motion for summary judgment, and, on May 1, 2012, the District Court of Oklahoma County ordered a transfer to Tulsa County. The Partnership is contesting SemCorp’s motion for summary judgment, which was referred to a special master for report and recommendation. On June 10, 2013, the special master filed a report with the District Court of Tulsa County, and on June 25, 2013, the Partnership filed a notice of non-objection and motion to adopt the special master's report. On September 17, 2013, the Partnership filed a motion for summary judgment as to the liability of SemCorp for the Partnership's claims for breach of contract and negligence by a bailee. On October 7, 2013, SemCorp renewed its motion for summary judgment, which the Partnership timely opposed. The Partnership intends to seek additional damages from SemCorp related to various injuries to the Partnership as a result of SemCorp's failure to resolve this issue. No trial date is set. | |
On July 13, 2012, the Partnership and one of its employees were named in a motor vehicle negligence suit in the District Court of Woodward County, Oklahoma arising out of an accident involving one of the Partnership’s crude oil tanker trucks. The accident resulted in the death of one of the occupants of the other vehicle and injuries to the other occupant. The plaintiff was seeking damages in excess of $75,000 from the Partnership. The Partnership submitted the claim to its insurance carriers, and, in September 2013, a fair and reasonable resolution of this matter was reached with the plaintiff within applicable policy limits. This matter did not have a material adverse impact on the Partnership's consolidated results of operations or financial condition. | |
The Partnership may become the subject of additional private or government actions regarding these matters in the future. Litigation may be time-consuming, expensive and disruptive to normal business operations, and the outcome of litigation is difficult to predict. The defense of these lawsuits may result in the incurrence of significant legal expense, both directly and as the result of the Partnership’s indemnification obligations. The litigation may also divert management’s attention from the Partnership’s operations which may cause its business to suffer. An unfavorable outcome in any of these matters may have a material adverse effect on the Partnership’s business, financial condition, results of operations, cash flows, ability to make distributions to its unitholders, the trading price of the Partnership’s common units and its ability to conduct its business. All or a portion of the defense costs and any amount the Partnership may be required to pay to satisfy a judgment or settlement of these claims may or may not be covered by insurance. | |
The Partnership has contractual obligations to perform dismantlement and removal activities in the event that some of its asphalt product and residual fuel oil terminalling and storage assets are abandoned. These obligations include varying levels of activity including completely removing the assets and returning the land to its original state. The Partnership has determined that the settlement dates related to the retirement obligations are indeterminate. The assets with indeterminate settlement dates have been in existence for many years and with regular maintenance will continue to be in service for many years to come. Also, it is not possible to predict when demands for the Partnership’s terminalling and storage services will cease, and the Partnership does not believe that such demand will cease for the foreseeable future. Accordingly, the Partnership believes the date when these assets will be abandoned is indeterminate. With no reasonably determinable abandonment date, the Partnership cannot reasonably estimate the fair value of the associated asset retirement obligations. Management believes that if the Partnership’s asset retirement obligations were settled in the foreseeable future the potential cash flows that would be required to settle the obligations based on current costs are not material. The Partnership will record asset retirement obligations for these assets in the period in which sufficient information becomes available for it to reasonably determine the settlement dates. |
INCOME_TAXES
INCOME TAXES | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Income Tax Disclosure [Abstract] | ' | |||
INCOME TAXES | ' | |||
INCOME TAXES | ||||
The anticipated after-tax economic benefit of an investment in the Partnership’s common units depends largely on the Partnership being treated as a partnership for federal income tax purposes. If less than 90% of the gross income of a publicly traded partnership, such as the Partnership, for any taxable year is “qualifying income” from sources such as the transportation, marketing (other than to end users), or processing of crude oil, natural gas or products thereof, interest, dividends or similar sources, that partnership will be taxable as a corporation under Section 7704 of the Internal Revenue Code for federal income tax purposes for that taxable year and all subsequent years. | ||||
If the Partnership were treated as a corporation for federal income tax purposes, then it would pay federal income tax on its income at the corporate tax rate, which is currently a maximum of 35%, and would likely pay state income tax at varying rates. Distributions would generally be taxed again to unitholders as corporate distributions and none of the Partnership’s income, gains, losses, deductions or credits would flow through to its unitholders. Because a tax would be imposed upon the Partnership as an entity, cash available for distribution to its unitholders would be substantially reduced. Treatment of the Partnership as a corporation would result in a material reduction in the anticipated cash flow and after-tax return to unitholders and thus would likely result in a substantial reduction in the value of the Partnership’s common units. | ||||
The Partnership has entered into storage contracts and leases with third party customers with respect to substantially all of its asphalt facilities. At the time of entering into such agreements, it was unclear under current tax law as to whether the rental income from the leases, and the fees attributable to certain of the processing services the Partnership provides under certain of the storage contracts, constitute “qualifying income.” In the second quarter of 2009, the Partnership submitted a request for a ruling from the IRS that rental income from the leases constitutes “qualifying income.” In October 2009, the Partnership received a favorable ruling from the IRS. As part of this ruling, however, the Partnership agreed to transfer, and has transferred, certain of its asphalt processing assets and related fee income to a subsidiary taxed as a corporation. This transfer occurred in the first quarter of 2010. Such subsidiary is required to pay federal income tax on its income at the corporate tax rate, which is currently a maximum of 35%, and will likely pay state (and possibly local) income tax at varying rates. Distributions from this subsidiary will generally be taxed again to unitholders as corporate distributions and none of the income, gains, losses, deductions or credits of this subsidiary will flow through to the Partnership’s unitholders. | ||||
In relation to the Partnership’s taxable subsidiary, the tax effects of temporary differences between the tax basis of assets and liabilities and their financial reporting amounts at September 30, 2013 are presented below (dollars in thousands): | ||||
Deferred tax assets | ||||
Difference in bases of property, plant and equipment | $ | 1,027 | ||
Deferred tax asset | 1,027 | |||
Less: valuation allowance | (1,027 | ) | ||
Net deferred tax asset | $ | — | ||
Given that the Partnership’s subsidiary that is taxed as a corporation has a limited earnings history for purposes of determining the likelihood of realizing the benefits of the deferred tax assets, the Partnership has provided a full valuation allowance against its deferred tax asset. |
RECENTLY_ISSUED_ACCOUNTING_STA
RECENTLY ISSUED ACCOUNTING STANDARDS | 9 Months Ended |
Sep. 30, 2013 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
RECENTLY ISSUED ACCOUNTING STANDARDS | 'In July 2012, the FASB issued ASU 2012-02, “Testing Indefinite-Lived Intangible Assets for Impairment,†which allows an entity to first assess qualitative factors to determine whether it is necessary to perform a quantitative impairment test. Under these amendments, an entity would not be required to calculate the fair value of an indefinite-lived intangible asset unless the entity determines, based on qualitative assessment, that it is not more likely than not that the indefinite-lived intangible asset is impaired. The amendments include a number of events and circumstances for an entity to consider in conducting the qualitative assessment. The Partnership adopted this guidance beginning in its December 31, 2012 annual impairment test, and the impact was not material.In July 2013, the FASB issued ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.†The amendment provides explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Partnership is evaluating the impact of this guidance, which will be adopted beginning with the Partnership’s quarterly report for the period ending March 31, 2014. |
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY, PLANT AND EQUIPMENT (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||||
Schedule of Property, Plant and Equipment | ' | |||||||||
Estimated Useful Lives (Years) | December 31, 2012 | September 30, 2013 | ||||||||
(dollars in thousands) | ||||||||||
Land | N/A | $ | 16,405 | $ | 16,532 | |||||
Land improvements | 20-Oct | 6,287 | 6,296 | |||||||
Pipelines and facilities | 30-May | 101,392 | 126,004 | |||||||
Storage and terminal facilities | Oct-35 | 232,102 | 235,240 | |||||||
Transportation equipment | 10-Mar | 18,003 | 18,139 | |||||||
Office property and equipment and other | 20-Mar | 26,009 | 27,018 | |||||||
Pipeline linefill and tank bottoms | N/A | 5,993 | 10,193 | |||||||
Construction-in-progress | N/A | 14,766 | 39,122 | |||||||
Property, plant and equipment, gross | 420,957 | 478,544 | ||||||||
Accumulated depreciation and impairments | (153,216 | ) | (173,429 | ) | ||||||
Property, plant and equipment, net | $ | 267,741 | $ | 305,115 | ||||||
NET_INCOME_PER_LIMITED_PARTNER1
NET INCOME PER LIMITED PARTNER UNIT (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Schedule of Basic and Diluted Net Income (Loss) Per Common and Subordinated Units | ' | |||||||||||||||
The following sets forth the computation of basic and diluted net income per common unit (in thousands, except per unit data): | ||||||||||||||||
Three Months ended September 30, | Nine Months ended September 30, | |||||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||||
Net income | $ | 7,907 | $ | 10,541 | $ | 26,048 | $ | 22,729 | ||||||||
General partner interest in net income | 165 | 220 | 659 | 537 | ||||||||||||
Preferred interest in net income | 5,391 | 5,391 | 16,173 | 16,173 | ||||||||||||
Beneficial conversion feature attributable to preferred units | — | — | 1,853 | — | ||||||||||||
Income available to limited partners | $ | 2,351 | $ | 4,930 | $ | 7,363 | $ | 6,019 | ||||||||
Basic weighted average number of units: | ||||||||||||||||
Common units | 22,670 | 22,697 | 22,666 | 22,684 | ||||||||||||
Restricted and phantom units | 617 | 699 | 550 | 667 | ||||||||||||
Diluted weighted average number of units: | ||||||||||||||||
Common units | 22,670 | 53,718 | 22,666 | 22,684 | ||||||||||||
Basic net income per common unit | $ | 0.1 | $ | 0.21 | $ | 0.32 | $ | 0.26 | ||||||||
Diluted net income per common unit | $ | 0.1 | $ | 0.19 | $ | 0.32 | $ | 0.26 | ||||||||
LONGTERM_INCENTIVE_PLAN_Tables
LONG-TERM INCENTIVE PLAN (Tables) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||
Schedule Of Phantom Common Units And Restricted Common Units Activity | ' | ||||||
Activity pertaining to phantom common units and restricted common unit awards granted under the Plan is as follows: | |||||||
Number of Units | Weighted Average Grant Date Fair Value | ||||||
Nonvested at December 31, 2012 | 1,016,703 | $ | 6.51 | ||||
Granted | 255,906 | 8.74 | |||||
Vested | 151,086 | 6.3 | |||||
Forfeited | 47,857 | 7.69 | |||||
Nonvested at September 30, 2013 | 1,073,666 | $ | 7.02 | ||||
OPERATING_SEGMENTS_Tables
OPERATING SEGMENTS (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | ' | |||||||||||||||||||
The following table reflects certain financial data for each segment for the periods indicated (in thousands): | ||||||||||||||||||||
Crude Oil Terminalling | Crude Oil | Crude Oil | Asphalt | Total | ||||||||||||||||
and Storage Services | Pipeline | Trucking and | Services | |||||||||||||||||
Services | Producer Field | |||||||||||||||||||
Services | ||||||||||||||||||||
Three months ended September 30, 2012 | ||||||||||||||||||||
Service revenue | ||||||||||||||||||||
Third party revenue | $ | 3,278 | $ | 4,216 | $ | 10,722 | $ | 16,581 | $ | 34,797 | ||||||||||
Related party revenue | 5,260 | 1,742 | 5,195 | 132 | 12,329 | |||||||||||||||
Total revenue for reportable segments | 8,538 | 5,958 | 15,917 | 16,713 | 47,126 | |||||||||||||||
Operating expenses (excluding depreciation and amortization) | 973 | 4,765 | 14,424 | 6,073 | 26,235 | |||||||||||||||
Operating margin (excluding depreciation and amortization) | 7,565 | 1,193 | 1,493 | 10,640 | 20,891 | |||||||||||||||
Total assets (end of period) | 68,870 | 99,619 | 19,323 | 112,745 | 300,557 | |||||||||||||||
Three months ended September 30, 2013 | ||||||||||||||||||||
Service revenue | ||||||||||||||||||||
Third party revenue | $ | 3,216 | $ | 6,910 | $ | 11,711 | $ | 18,007 | $ | 39,844 | ||||||||||
Related party revenue | 4,477 | 4,807 | 5,805 | 310 | 15,399 | |||||||||||||||
Total revenue for reportable segments | 7,693 | 11,717 | 17,516 | 18,317 | 55,243 | |||||||||||||||
Operating expenses (excluding depreciation and amortization) | 1,068 | 4,305 | 15,226 | 5,922 | 26,521 | |||||||||||||||
Operating margin (excluding depreciation and amortization)(1) | 6,625 | 7,412 | 2,290 | 12,395 | 28,722 | |||||||||||||||
Total assets (end of period) | 65,314 | 175,476 | 20,446 | 101,215 | 362,451 | |||||||||||||||
Nine months ended September 30, 2012 | ||||||||||||||||||||
Service revenue | ||||||||||||||||||||
Third party revenue | $ | 9,009 | $ | 12,274 | $ | 35,202 | $ | 44,359 | $ | 100,844 | ||||||||||
Related party revenue | 18,153 | 4,252 | 11,754 | 457 | 34,616 | |||||||||||||||
Total revenue for reportable segments | 27,162 | 16,526 | 46,956 | 44,816 | 135,460 | |||||||||||||||
Operating expenses (excluding depreciation and amortization) | 2,698 | 12,634 | 40,700 | 17,554 | 73,586 | |||||||||||||||
Operating margin (excluding depreciation and amortization)(1) | 24,464 | 3,892 | 6,256 | 27,262 | 61,874 | |||||||||||||||
Total assets (end of period) | 68,870 | 99,619 | 19,323 | 112,745 | 300,557 | |||||||||||||||
Nine months ended September 30, 2013 | ||||||||||||||||||||
Service revenue | ||||||||||||||||||||
Third party revenue | $ | 9,149 | $ | 14,432 | $ | 36,085 | $ | 48,078 | $ | 107,744 | ||||||||||
Related party revenue | 14,495 | 7,179 | 16,370 | 1,337 | 39,381 | |||||||||||||||
Total revenue for reportable segments | 23,644 | 21,611 | 52,455 | 49,415 | 147,125 | |||||||||||||||
Operating expenses (excluding depreciation and amortization) | 2,872 | 11,801 | 45,469 | 18,549 | 78,691 | |||||||||||||||
Operating margin (excluding depreciation and amortization)(1) | 20,772 | 9,810 | 6,986 | 30,866 | 68,434 | |||||||||||||||
Total assets (end of period) | 65,314 | 175,476 | 20,446 | 101,215 | 362,451 | |||||||||||||||
____________________ | ||||||||||||||||||||
-1 | The following table reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes (in thousands): | |||||||||||||||||||
Three Months ended September 30, | Nine Months ended September 30, | |||||||||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||||||||
Operating margin (excluding depreciation and amortization) | $ | 20,891 | $ | 28,722 | $ | 61,874 | $ | 68,434 | ||||||||||||
Depreciation and amortization | (5,792 | ) | (6,078 | ) | (17,174 | ) | (17,812 | ) | ||||||||||||
General and administrative expenses | (4,119 | ) | (4,649 | ) | (13,608 | ) | (13,806 | ) | ||||||||||||
Gain on sale of assets | 46 | 734 | 5,265 | 1,732 | ||||||||||||||||
Asset impairment expense | (95 | ) | (5,855 | ) | (1,168 | ) | (5,855 | ) | ||||||||||||
Interest expense | (2,909 | ) | (1,897 | ) | (8,877 | ) | (9,188 | ) | ||||||||||||
Equity earnings (loss) in unconsolidated entity | — | (151 | ) | — | (325 | ) | ||||||||||||||
Income before income taxes | $ | 8,022 | $ | 10,826 | $ | 26,312 | $ | 23,180 | ||||||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Income Tax Disclosure [Abstract] | ' | |||
Schedule of Deferred Tax Assets | ' | |||
In relation to the Partnership’s taxable subsidiary, the tax effects of temporary differences between the tax basis of assets and liabilities and their financial reporting amounts at September 30, 2013 are presented below (dollars in thousands): | ||||
Deferred tax assets | ||||
Difference in bases of property, plant and equipment | $ | 1,027 | ||
Deferred tax asset | 1,027 | |||
Less: valuation allowance | (1,027 | ) | ||
Net deferred tax asset | $ | — | ||
ORGANIZATION_AND_NATURE_OF_BUS1
ORGANIZATION AND NATURE OF BUSINESS (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2013 | |
Operating-segments | |
States | |
ORGANIZATION AND NATURE OF BUSINESS [Abstract] | ' |
Number of states in which entity operates (in states) | 23 |
Number of operating segments (in operating segments) | 4 |
RECENT_EVENTS_Narrative_Detail
RECENT EVENTS (Narrative) (Details) (Advantage Pipeline, L.L.C. [Member]) | Feb. 04, 2013 |
mi | |
Business Acquisition [Line Items] | ' |
Equity Method Investment, Ownership Percentage | 30.00% |
Miles of Crude Oil Pipeline | 70 |
Advantage Pipeline Phase I [Member] | ' |
Business Acquisition [Line Items] | ' |
Miles of Crude Oil Pipeline | 36 |
RECENT_EVENTS_Narrative_2_Deta
RECENT EVENTS (Narrative 2) (Details) (Revolving Credit Facility [Member], USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Revolving Credit Facility [Member] | ' |
Debt Instrument [Line Items] | ' |
Revolving credit facility amount | $400 |
DEBT_Credit_Agreements_Details
DEBT (Credit Agreements) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 28, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Nov. 01, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Nov. 01, 2013 | |
Blueknight General Partners G. P., L.L.C. [Member] | Vitol or Charlesbank [Member] | Secured Debt and Revolving Credit Facility [Member] | Secured Debt and Revolving Credit Facility [Member] | Secured Debt [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Letter of Credit [Member] | ||||||
Minimum [Member] | Maximum [Member] | Subsequent Event [Member] | Federal funds rate [Member] | Eurodollar rate [Member] | Applicable margin based on ABR [Member] | Applicable margin based on ABR [Member] | Applicable margin based on Eurodollar rate [Member] | Applicable margin based on Eurodollar rate [Member] | Subsequent Event [Member] | |||||||||||||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | |||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings under credit facility | ' | ' | 331,411,000 | 31,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of Long-term Debt | ' | ' | 268,000,000 | 36,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolver borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 266,400,000 | ' | ' | ' | ' | ' | ' | ' |
Letters of credit outstanding, amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 |
Unused borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 133,100,000 | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity including additional lenders | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit agreement lender commitment amount | 0 | ' | 0 | ' | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis spread on variable rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | 1.00% | ' | ' | 2.00% | 3.00% | ' |
Applicable margin interest rate increase (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | 2.00% | ' | ' | ' |
Unused capacity, commitment fee (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.38% | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated total leverage (as a ratio), Maximum permitted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument Maximum Covenant Consolidated Total Leverage Base Ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument Covenant, Issued Qualified Senior Notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument Maximum Covenant Consolidated Senior Secured Leverage Ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated interest coverage (as a ratio), minimum permitted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated total leverage (as a ratio), actual | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.67 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated interest coverage (as a ratio), actual | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.61 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit agreement, Constitute a change of control, if ceases to own, directly or indirectly, exactly 50% of the membership interests of the General Partner or if General Partner ceases to be controlled (as a percent) | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit agreement, Constitute a change of control if Vitol Holding BV and Charlesbank ceasing to collectively own and control 50% of the GP | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Write off of Deferred Debt Issuance Cost | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | 1,800,000 | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt issuance costs, net | 3,747,000 | ' | 3,747,000 | ' | 3,225,000 | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate During Period | 3.18% | 5.15% | 4.39% | 5.24% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt issuance costs | ' | ' | 3,639,000 | 0 | ' | ' | ' | 200,000 | ' | ' | ' | 3,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization and write-off of debt issuance costs | 200,000 | 400,000 | 3,100,000 | 1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense for long-term debt | 2,200,000 | 2,800,000 | 8,200,000 | 8,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.14% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense, net of capitalized interest | 1,897,000 | 2,909,000 | 9,188,000 | 8,877,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Costs Capitalized | $271,552.30 | $30,500.70 | $969,182.12 | $93,006.20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
PROPERTY_PLANT_AND_EQUIPMENT_D
PROPERTY, PLANT AND EQUIPMENT (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property, plant and equipment, gross | $478,544,000 | ' | $478,544,000 | ' | $420,957,000 |
Accumulated Depreciation and Impairments, property plant and equipment | 173,429,000 | ' | 173,429,000 | ' | 153,216,000 |
Property, plant and equipment, net | 305,115,000 | ' | 305,115,000 | ' | 267,741,000 |
Depreciation | 6,100,000 | 5,800,000 | 17,800,000 | 17,100,000 | ' |
Asset Impairment Charges | 5,855,000 | 95,000 | 5,855,000 | 1,168,000 | ' |
Land [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property, plant and equipment, gross | 16,532,000 | ' | 16,532,000 | ' | 16,405,000 |
Land improvements [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property, plant and equipment, gross | 6,296,000 | ' | 6,296,000 | ' | 6,287,000 |
Land improvements [Member] | Minimum [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Estimated Useful Lives | ' | ' | '10 years | ' | ' |
Land improvements [Member] | Maximum [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Estimated Useful Lives | ' | ' | '20 years | ' | ' |
Pipelines and facilities [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property, plant and equipment, gross | 126,004,000 | ' | 126,004,000 | ' | 101,392,000 |
Asset Impairment Charges | 5,900,000 | ' | 5,900,000 | ' | ' |
Pipelines and facilities [Member] | Minimum [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Estimated Useful Lives | ' | ' | '5 years | ' | ' |
Pipelines and facilities [Member] | Maximum [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Estimated Useful Lives | ' | ' | '30 years | ' | ' |
Storage and terminal facilities [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property, plant and equipment, gross | 235,240,000 | ' | 235,240,000 | ' | 232,102,000 |
Storage and terminal facilities [Member] | Minimum [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Estimated Useful Lives | ' | ' | '10 years | ' | ' |
Storage and terminal facilities [Member] | Maximum [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Estimated Useful Lives | ' | ' | '35 years | ' | ' |
Transportation equipment [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property, plant and equipment, gross | 18,139,000 | ' | 18,139,000 | ' | 18,003,000 |
Transportation equipment [Member] | Minimum [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Estimated Useful Lives | ' | ' | '3 years | ' | ' |
Transportation equipment [Member] | Maximum [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Estimated Useful Lives | ' | ' | '10 years | ' | ' |
Office property and equipment and other [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property, plant and equipment, gross | 27,018,000 | ' | 27,018,000 | ' | 26,009,000 |
Office property and equipment and other [Member] | Minimum [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Estimated Useful Lives | ' | ' | '3 years | ' | ' |
Office property and equipment and other [Member] | Maximum [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Estimated Useful Lives | ' | ' | '20 years | ' | ' |
Pipeline linefill and tank bottoms [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property, plant and equipment, gross | 10,193,000 | ' | 10,193,000 | ' | 5,993,000 |
Construction-in-progress [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property, plant and equipment, gross | 39,122,000 | ' | 39,122,000 | ' | 14,766,000 |
Thompson System [Member] | Pipelines and facilities [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Asset Impairment Charges | $5,700,000 | ' | $5,700,000 | ' | ' |
NET_INCOME_PER_LIMITED_PARTNER2
NET INCOME PER LIMITED PARTNER UNIT (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income | $10,541 | $7,907 | $22,729 | $26,048 |
General partner interest in net income | 220 | 165 | 537 | 659 |
Noncontrolling Interest in Net Income (Loss) Preferred Unit Holders, Redeemable | 5,391 | 5,391 | 16,173 | 16,173 |
Beneficial conversion feature attributable to preferred units | 0 | 0 | 0 | 1,853 |
Income available to limited partners | $4,930 | $2,351 | $6,019 | $7,363 |
Basic weighted average number of units: | ' | ' | ' | ' |
Weighted average common units outstanding - basic | 22,697 | 22,670 | 22,684 | 22,666 |
Weighted average common units outstanding - diluted | 53,718 | 22,670 | 22,684 | 22,666 |
Restricted and phantom units | 699 | 617 | 667 | 550 |
Basic net income per common unit | $0.21 | $0.10 | $0.26 | $0.32 |
Diluted net income per common unit | $0 | $0.10 | $0.26 | $0.32 |
DISTRIBUTIONS_Narrative_Detail
DISTRIBUTIONS (Narrative) (Details) (USD $) | 3 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 |
Distribution Made to Member or Limited Partner, Cash Distributions Declared | $2.90 |
Phantom Share Units and Restricted Units [Member] | ' |
Distribution Made to Member or Limited Partner, Cash Distributions Declared | 0.1 |
Series A Preferred Unitholders [Member] | ' |
Distribution Made to Member or Limited Partner, Distributions Declared (in dollars per unit) | $0.18 |
Distribution Made to Member or Limited Partner, Cash Distributions Declared | 5.4 |
Common Unitholders [Member] | ' |
Distribution Made to Member or Limited Partner, Distributions Declared (in dollars per unit) | $0.12 |
Distribution Made to Member or Limited Partner, Distributions Declared, Percentage Increase Over Previous Quarter Distribution | 2.10% |
Distribution Made to Member or Limited Partner, Cash Distributions Declared | 2.8 |
General Partner Interest [Member] | ' |
Distribution Made to Member or Limited Partner, Cash Distributions Declared | $0.10 |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Related party revenue | $15,399 | $12,329 | $39,381 | $34,616 | ' |
Receivables from related parties | 5,826 | ' | 5,826 | ' | 3,522 |
Vitol [Member] | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Related party revenue | 15,100 | 12,300 | 39,000 | 34,600 | ' |
Receivables from related parties | 5,800 | ' | 5,800 | ' | 3,100 |
Advantage Pipeline, L.L.C. [Member] | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Related party revenue | 300 | ' | 300 | ' | ' |
General Partner [Member] | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Receivables from related parties | ' | ' | ' | ' | $500 |
RELATED_PARTY_TRANSACTIONS_Vit
RELATED PARTY TRANSACTIONS (Vitol Omnibus Agreement) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Feb. 15, 2010 | Sep. 30, 2012 |
Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | |||||
Vitol Operating and Maintenance Agreement [Member] | Vitol Operating and Maintenance Agreement [Member] | Vitol Operating and Maintenance Agreement [Member] | Vitol Omnibus Agreement [Member] | Vitol Omnibus Agreement [Member] | |||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Monthly charge per Designated Person for each Designated Person that performs services for Vitol during any portion of such month | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500 | ' |
Multiplier rate (as a decimal) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.1 | ' |
If during any month any Designated Person has spent more than 80% of his time performing services for Vitol, then Vitol will have the right for the succeeding three months to request that such individual be transitioned directly to the employment of Vitol (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80.00% | ' |
Related party revenue | $15,399 | $12,329 | $39,381 | $34,616 | $15,100 | $12,300 | $39,000 | $34,600 | $200 | $100 | $500 | ' | $100 |
RELATED_PARTY_TRANSACTIONS_Vit1
RELATED PARTY TRANSACTIONS (Vitol Storage Agreements) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 01, 2012 | Sep. 30, 2012 | 2-May-10 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 01, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 01, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | |||||
Contracts | 2008 Vitol Storage Agreements [Member] | 2010 Vitol Storage Agreements [Member] | 2010 Vitol Storage Agreements [Member] | 2010 Vitol Storage Agreements [Member] | 2010 Vitol Storage Agreements [Member] | 2010 Vitol Storage Agreements [Member] | Vitol 2012 12 Month Storage Agreement [Member] | Vitol 2012 12 Month Storage Agreement [Member] | Vitol 2012 12 Month Storage Agreement [Member] | Vitol 2012 12 Month Storage Agreement [Member] | Vitol 2012 12 Month Storage Agreement [Member] | Vitol 2012 6 Month Storage Agreement [Member] | Vitol 2012 6 Month Storage Agreement [Member] | Vitol 2012 6 Month Storage Agreement [Member] | Vitol 2012 6 Month Storage Agreement [Member] | Vitol 2012 6 Month Storage Agreement [Member] | Vitol September 2012 Storage Agreement [Member] | Vitol September 2012 Storage Agreement [Member] | Vitol September 2012 Storage Agreement [Member] | Vitol September 2012 Storage Agreement [Member] | |||||||||
bbl | bbl | bbl | bbl | ||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related party revenue | $15,399 | $12,329 | $39,381 | $34,616 | $15,100 | $12,300 | $39,000 | $34,600 | ' | $5,500 | ' | $2,200 | $2,800 | $6,900 | $8,700 | ' | $1,000 | $1,400 | $3,300 | $1,800 | ' | $500 | $700 | $1,700 | $900 | $500 | $200 | $1,700 | $200 |
Initial term (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | '12 months | ' | ' | ' | ' | '6 months | ' | ' | ' | ' | ' | ' | ' | ' |
Automatic renewal period (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Termination period by either party prior notice (in days) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '90 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of new crude oil storage services agreements with Vitol (in contracts) | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Barrels of storage capacity of crude oil storage tanks dedicated to related party (in barrels) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | 500,000 | ' |
RELATED_PARTY_TRANSACTIONS_Vit2
RELATED PARTY TRANSACTIONS (Vitol Throughput Capacity Agreement) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Apr. 30, 2013 | Feb. 28, 2013 | Mar. 31, 2012 | Aug. 31, 2010 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2010 | |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of related party debt | ' | ' | ' | ' | ' | $2,681,000 | $1,205,000 | ' |
(ENPS) Vitol Throughput Capacity Agreement [Member] | Vitol [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase of Thoughput Capacity Related to Pipeline System | ' | ' | ' | 100.00% | ' | ' | ' | ' |
Due from related party | ' | ' | ' | ' | ' | ' | ' | 5,500,000 |
Payments made in any contract year, minimum, required deficiency payment, equal to amount, minus the aggregate amount of all payments made by Vitol during such contract year | ' | ' | ' | ' | ' | 2,400,000 | ' | ' |
Deficiency payment received | ' | 200,000 | 300,000 | ' | ' | ' | ' | ' |
Interest expense | ' | ' | ' | ' | 100,000 | 100,000 | 400,000 | ' |
Effective annual interest rate (as a percent) | ' | ' | ' | ' | ' | 14.10% | ' | ' |
Repayments of related party debt | $2,500,000 | ' | ' | ' | ' | ' | ' | ' |
Subsequent Event [Member] | (ENPS) Vitol Throughput Capacity Agreement [Member] | Vitol [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of Thoughput Capacity Related to Pipeline System | 100.00% | ' | ' | ' | ' | ' | ' | ' |
RELATED_PARTY_TRANSACTIONS_Oth
RELATED PARTY TRANSACTIONS (Other Vitol Agreements) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Aug. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Aug. 01, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Vitol [Member] | Advantage Pipeline, L.L.C. [Member] | Advantage Pipeline, L.L.C. [Member] | Secured Debt [Member] | ||||||
Vitol Operating and Maintenance Agreement [Member] | Vitol Operating and Maintenance Agreement [Member] | Vitol Operating and Maintenance Agreement [Member] | Vitol Operating and Maintenance Agreement [Member] | Vitol Shared Services Agreement [Member] | Vitol Shared Services Agreement [Member] | Vitol Shared Services Agreement [Member] | Vitol Shared Services Agreement [Member] | Vitol Shared Services Agreement [Member] | Vitol’s Commitment under the Partnership’s Credit Agreement [Member] | Vitol’s Commitment under the Partnership’s Credit Agreement [Member] | Vitol’s Commitment under the Partnership’s Credit Agreement [Member] | Vitol [Member] | ||||||||||||
Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Vitol’s Commitment under the Partnership’s Credit Agreement [Member] | |||||||||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial term (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related party revenue | $15,399,000 | $12,329,000 | $39,381,000 | $34,616,000 | ' | $15,100,000 | $12,300,000 | $39,000,000 | $34,600,000 | ' | $200,000 | $100,000 | $500,000 | ' | $100,000 | $300,000 | $100,000 | $300,000 | ' | ' | ' | $300,000 | $300,000 | ' |
Credit agreement lender commitment amount | 0 | ' | 0 | ' | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 |
Pro rata portion of interest payments received by Vitol under credit agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $200,000 | $300,000 | $500,000 | ' | ' | ' |
RELATED_PARTY_TRANSACTIONS_Adv
RELATED PARTY TRANSACTIONS (Advantage Pipeline Operating and Administrative Services Agreement) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Jan. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Advantage Pipeline, L.L.C. [Member] | Advantage Pipeline, L.L.C. [Member] | Advantage Pipeline, L.L.C. [Member] | Advantage Pipeline, L.L.C. [Member] | Advantage Pipeline, L.L.C. [Member] | |||||
Operating and Administrative Services Agreement [Member] | Operating and Administrative Services Agreement [Member] | Operating and Administrative Services Agreement [Member] | |||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial term (in years) | ' | ' | ' | ' | ' | ' | '10 years | ' | ' |
Related Party Transaction, Option to Extend Term | ' | ' | ' | ' | ' | ' | '5 years | ' | ' |
Related party revenue | $15,399 | $12,329 | $39,381 | $34,616 | $300 | $300 | ' | $100 | $200 |
LONGTERM_INCENTIVE_PLAN_Detail
LONG-TERM INCENTIVE PLAN (Details) (USD $) | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 1 Months Ended | ||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Jun. 30, 2013 | Mar. 31, 2011 | Jun. 30, 2013 | Mar. 31, 2012 | Mar. 31, 2013 | |
Plan [Member] | Plan [Member] | Plan [Member] | Plan [Member] | Plan [Member] | Plan [Member] | Plan [Member] | Plan [Member] | Plan [Member] | Plan [Member] | Plan [Member] | Plan [Member] | Plan [Member] | January 2014 Vesting [Member] | January 2014 Vesting [Member] | January 2015 Vesting [Member] | January 2015 Vesting [Member] | January 2016 Vesting [Member] | |||
Phantom common units [Member] | Phantom common units [Member] | Phantom common units [Member] | Phantom common units [Member] | Phantom common units [Member] | Phantom common units [Member] | Phantom common units [Member] | Phantom common units [Member] | Phantom common units [Member] | Phantom common units [Member] | Restricted common units [Member] | Restricted common units [Member] | Restricted common units [Member] | Plan [Member] | Plan [Member] | Plan [Member] | Plan [Member] | Plan [Member] | |||
Chief Executive Officer [Member] | Chief Executive Officer [Member] | Independent Directors [Member] | Independent Directors [Member] | Independent Directors [Member] | Phantom common units [Member] | Phantom common units [Member] | Phantom common units [Member] | Phantom common units [Member] | Phantom common units [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of units authorized | ' | ' | ' | ' | ' | ' | 2,600,000 | ' | 2,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Award vesting rights percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33.00% | 33.00% | 33.00% | ' | ' | ' | ' | ' |
Value of award grants (in dollars) | ' | ' | $0 | $2,200,000 | $2,400,000 | $2,500,000 | ' | ' | ' | ' | $2,800,000 | ' | $54,750 | $0 | ' | ' | ' | ' | ' | ' |
Unrecognized estimated compensation cost (in dollars) | ' | ' | ' | ' | ' | ' | 1,800,000 | ' | 1,800,000 | ' | ' | 2,200,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Expected awards that wil be vested (as a percent) | ' | ' | ' | ' | ' | ' | 74.00% | ' | 74.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity-based incentive compensation expense (in dollars) | $1,547,000 | $1,079,000 | ' | ' | ' | ' | $500,000 | $400,000 | $1,500,000 | $1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Units [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Units, Nonvested, Beginning balance | ' | ' | ' | ' | ' | ' | ' | ' | 1,016,703 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Units, Granted | ' | ' | ' | ' | ' | ' | ' | ' | 255,906 | ' | 500,000 | ' | 7,500 | 7,500 | 7,500 | 1,300 | 299,900 | 3,500 | 353,300 | 251,106 |
Number of Units, Vested | ' | ' | ' | ' | ' | ' | ' | ' | 151,086 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Units, Forfeited | ' | ' | ' | ' | ' | ' | ' | ' | 47,857 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Units, Nonvested, Ending balance | ' | ' | ' | ' | ' | ' | 1,073,666 | ' | 1,073,666 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Grant Date Fair Value [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Grant Date Fair Value, Nonvested, Beginning balance (in dollars per unit) | ' | ' | ' | ' | ' | ' | ' | ' | $6.51 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Grant Date Fair Value, Granted (in dollars per unit) | ' | ' | $8.40 | $8.75 | $6.76 | $8.25 | ' | ' | $8.74 | ' | $5.62 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Grant Date Fair Value, Vested (in dollars per unit) | ' | ' | ' | ' | ' | ' | ' | ' | $6.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Grant Date Fair Value, Forfeited (in dollars per unit) | ' | ' | ' | ' | ' | ' | ' | ' | $7.69 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Grant Date Fair Value, Nonvested, Ending balance (in dollars per unit) | ' | ' | ' | ' | ' | ' | $7.02 | ' | $7.02 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
EMPLOYEE_BENEFIT_PLAN_Details
EMPLOYEE BENEFIT PLAN (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
401 (k) Plan [Member] | ' | ' | ' | ' |
Defined Contribution Plans Disclosure [Line Items] | ' | ' | ' | ' |
Employer discretionary contribution amount | $0.30 | $0.30 | $1 | $1 |
Profit Sharing [Member] | ' | ' | ' | ' |
Defined Contribution Plans Disclosure [Line Items] | ' | ' | ' | ' |
Employer discretionary contribution amount | $0.20 | $0.20 | $0.80 | $0.70 |
OPERATING_SEGMENTS_Details
OPERATING SEGMENTS (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | ||||
Operating-segments | |||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Number of operating segments (in operating segments) | ' | ' | 4 | ' | ' | ||||
Service revenue | ' | ' | ' | ' | ' | ||||
Third party revenue | $39,844 | $34,797 | $107,744 | $100,844 | ' | ||||
Related party revenue | 15,399 | 12,329 | 39,381 | 34,616 | ' | ||||
Total revenue for reportable segments | 55,243 | 47,126 | 147,125 | 135,460 | ' | ||||
Operating expenses (excluding depreciation and amortization) | 26,521 | 26,235 | 78,691 | 73,586 | ' | ||||
Operating margin (excluding depreciation and amortization) | 28,722 | [1] | 20,891 | [1] | 68,434 | [1] | 61,874 | [1] | ' |
Total assets (end of period) | 362,451 | 300,557 | 362,451 | 300,557 | 299,825 | ||||
Reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes | ' | ' | ' | ' | ' | ||||
Operating margin (excluding depreciation and amortization) | 28,722 | [1] | 20,891 | [1] | 68,434 | [1] | 61,874 | [1] | ' |
Depreciation and amortization | -6,078 | -5,792 | -17,812 | -17,174 | ' | ||||
General and administrative expenses | -4,649 | -4,119 | -13,806 | -13,608 | ' | ||||
Gain on sale of assets | 734 | 46 | 1,732 | 5,265 | ' | ||||
Asset Impairment Charges | 5,855 | 95 | 5,855 | 1,168 | ' | ||||
Interest expense (net of capitalized interest of $31, $272, $93 and $969, respectively) | -1,897 | -2,909 | -9,188 | -8,877 | ' | ||||
Equity (earnings) loss in unconsolidated affiliate | -151 | 0 | -325 | 0 | ' | ||||
Income before income taxes | 10,826 | 8,022 | 23,180 | 26,312 | ' | ||||
Crude Oil Terminalling and Storage Services [Member] | ' | ' | ' | ' | ' | ||||
Service revenue | ' | ' | ' | ' | ' | ||||
Third party revenue | 3,216 | 3,278 | 9,149 | 9,009 | ' | ||||
Related party revenue | 4,477 | 5,260 | 14,495 | 18,153 | ' | ||||
Total revenue for reportable segments | 7,693 | 8,538 | 23,644 | 27,162 | ' | ||||
Operating expenses (excluding depreciation and amortization) | 1,068 | 973 | 2,872 | 2,698 | ' | ||||
Operating margin (excluding depreciation and amortization) | 6,625 | [1] | 7,565 | [1] | 20,772 | [1] | 24,464 | [1] | ' |
Total assets (end of period) | 65,314 | 68,870 | 65,314 | 68,870 | ' | ||||
Reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes | ' | ' | ' | ' | ' | ||||
Operating margin (excluding depreciation and amortization) | 6,625 | [1] | 7,565 | [1] | 20,772 | [1] | 24,464 | [1] | ' |
Crude Oil Pipeline Services [Member] | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Number of pipelines systems owned and operated (in pipeline systems) | 3 | ' | 3 | ' | ' | ||||
Service revenue | ' | ' | ' | ' | ' | ||||
Third party revenue | 6,910 | 4,216 | 14,432 | 12,274 | ' | ||||
Related party revenue | 4,807 | 1,742 | 7,179 | 4,252 | ' | ||||
Total revenue for reportable segments | 11,717 | 5,958 | 21,611 | 16,526 | ' | ||||
Operating expenses (excluding depreciation and amortization) | 4,305 | 4,765 | 11,801 | 12,634 | ' | ||||
Operating margin (excluding depreciation and amortization) | 7,412 | [1] | 1,193 | [1] | 9,810 | [1] | 3,892 | [1] | ' |
Total assets (end of period) | 175,476 | 99,619 | 175,476 | 99,619 | ' | ||||
Reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes | ' | ' | ' | ' | ' | ||||
Operating margin (excluding depreciation and amortization) | 7,412 | [1] | 1,193 | [1] | 9,810 | [1] | 3,892 | [1] | ' |
Crude Oil Trucking and Producer Field Services [Member] | ' | ' | ' | ' | ' | ||||
Service revenue | ' | ' | ' | ' | ' | ||||
Third party revenue | 11,711 | 10,722 | 36,085 | 35,202 | ' | ||||
Related party revenue | 5,805 | 5,195 | 16,370 | 11,754 | ' | ||||
Total revenue for reportable segments | 17,516 | 15,917 | 52,455 | 46,956 | ' | ||||
Operating expenses (excluding depreciation and amortization) | 15,226 | 14,424 | 45,469 | 40,700 | ' | ||||
Operating margin (excluding depreciation and amortization) | 2,290 | [1] | 1,493 | [1] | 6,986 | [1] | 6,256 | [1] | ' |
Total assets (end of period) | 20,446 | 19,323 | 20,446 | 19,323 | ' | ||||
Reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes | ' | ' | ' | ' | ' | ||||
Operating margin (excluding depreciation and amortization) | 2,290 | [1] | 1,493 | [1] | 6,986 | [1] | 6,256 | [1] | ' |
Asphalt Services [Member] | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Number of terminalling and storage facilities providing asphalt product and residual fuel terminalling storage and blending services (in terminalling and storage facilities) | 44 | ' | 44 | ' | ' | ||||
Number of states that Asphalt product and residual fuel terminalling, storage and blending services at its terminalling and storage facilities are provided (in states) | 22 | ' | 22 | ' | ' | ||||
Service revenue | ' | ' | ' | ' | ' | ||||
Third party revenue | 18,007 | 16,581 | 48,078 | 44,359 | ' | ||||
Related party revenue | 310 | 132 | 1,337 | 457 | ' | ||||
Total revenue for reportable segments | 18,317 | 16,713 | 49,415 | 44,816 | ' | ||||
Operating expenses (excluding depreciation and amortization) | 5,922 | 6,073 | 18,549 | 17,554 | ' | ||||
Operating margin (excluding depreciation and amortization) | 12,395 | [1] | 10,640 | [1] | 30,866 | [1] | 27,262 | [1] | ' |
Total assets (end of period) | 101,215 | 112,745 | 101,215 | 112,745 | ' | ||||
Reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes | ' | ' | ' | ' | ' | ||||
Operating margin (excluding depreciation and amortization) | $12,395 | [1] | $10,640 | [1] | $30,866 | [1] | $27,262 | [1] | ' |
[1] | The following table reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes (in thousands): Three Months ended September 30, Nine Months ended September 30, 2012 2013 2012 2013Operating margin (excluding depreciation and amortization)$20,891 $28,722 $61,874 $68,434Depreciation and amortization(5,792) (6,078) (17,174) (17,812)General and administrative expenses(4,119) (4,649) (13,608) (13,806)Gain on sale of assets46 734 5,265 1,732Asset impairment expense(95) (5,855) (1,168) (5,855)Interest expense(2,909) (1,897) (8,877) (9,188)Equity earnings (loss) in unconsolidated entity— (151) — (325)Income before income taxes$8,022 $10,826 $26,312 $23,180 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) (USD $) | Sep. 30, 2013 | Feb. 06, 2012 | Feb. 06, 2012 | Apr. 30, 2009 | Apr. 30, 2009 | Jul. 08, 2009 | Jul. 13, 2012 | Jul. 13, 2012 |
Pending Litigation [Member] | Minimum [Member] | Oklahoma Department of Labor [Member] | Oklahoma Department of Labor [Member] | Tulsa County [Member] | District Court of Woodward County, Oklahoma [Member] | District Court of Woodward County, Oklahoma [Member] | ||
Boe | Pending Litigation [Member] | Dismissed [Member] | Dismissed [Member] | Claimants alleged phantom units previously awarded to them vested upon the Change of Control that occurred in July 2008, related to Partnership's general partner's Long-Term Incentive Plan [Member] | Pending Litigation [Member] | Minimum [Member] | ||
Positive Outcome of Litigation [Member] | Claimants contended the Partnership's general partner's failure to deliver certificates of phantom units within 60 days after vesting caused them damages and sought recovery of damages and penalties [Member] | Claimant alleged that his phantom units vested upon his termination [Member] | Person | Motor Vehicle Negligence Suit [Member] | Pending Litigation [Member] | |||
Person | Person | Motor Vehicle Negligence Suit [Member] | ||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated Litigation Liability, Current | $700,000 | ' | ' | ' | ' | ' | ' | ' |
Number of plaintiffs (in plaintiffs) | ' | ' | ' | ' | 1 | 9 | ' | ' |
Claimants contended the Partnership's general partner's failure to deliver certificates for the phantom units after vesting, (in days) maximum | ' | ' | ' | '60 | ' | ' | ' | ' |
Damages sought | ' | ' | ' | 2,000,000 | ' | ' | ' | 75,000 |
Judgement seeking immediate return of crude cil Linefill belonging to company (in BOE) | ' | 140,000 | ' | ' | ' | ' | ' | ' |
Gain contingency, unrecorded amount | ' | ' | $75,000 | ' | ' | ' | ' | ' |
Loss Contingency, Number of Deaths Related to Court Case | ' | ' | ' | ' | ' | ' | 1 | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Income Tax Disclosure [Abstract] | ' |
Gross income of a partnership, for any taxable year is qualifying income will be taxable as a corporation for federal income tax purposes for that taxable year and all subsequent years, maximum (as a percent) | 90.00% |
Federal statutory income tax rate (as a percent) | 35.00% |
Difference in bases of property, plant and equipment | $1,027 |
Deferred tax asset | 1,027 |
Less: valuation allowance | -1,027 |
Net deferred tax asset | $0 |