Document_And_Entity_Informatio
Document And Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 01, 2014 | |
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 | ' | 22,925,092 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $1,598 | $3,182 |
Accounts receivable, net of allowance for doubtful accounts of $69 and $225 at December 31, 2013 and June 30, 2014, respectively | 12,562 | 12,244 |
Receivables from related parties, net of allowance for doubtful accounts of $0 for both dates | 3,131 | 3,149 |
Prepaid insurance | 3,397 | 1,694 |
Assets held for sale, net of accumulated depreciation and impairments of $166 and $180 at December 31, 2013 and June 30, 2014, respectively | 344 | 338 |
Other current assets | 3,985 | 4,321 |
Total current assets | 25,017 | 24,928 |
Property, plant and equipment, net of accumulated depreciation of $171,056 and $181,001 at December 31, 2013 and June 30, 2014, respectively | 303,615 | 297,400 |
Investment in unconsolidated affiliate | 19,552 | 19,498 |
Goodwill | 7,216 | 7,216 |
Debt issuance costs, net | 3,182 | 3,580 |
Intangibles and other assets, net | 1,772 | 2,126 |
Total assets | 360,354 | 354,748 |
Current liabilities: | ' | ' |
Accounts payable | 6,601 | 6,537 |
Accrued interest payable | 170 | 482 |
Accrued property taxes payable | 2,120 | 1,810 |
Unearned revenue | 2,936 | 2,326 |
Unearned revenue with related parties | 234 | 90 |
Accrued payroll | 5,095 | 7,379 |
Other current liabilities | 3,772 | 4,959 |
Total current liabilities | 20,928 | 23,583 |
Unearned revenue with related parties, noncurrent | 135 | 153 |
Other long-term liabilities | 3,863 | 2,554 |
Interest rate swaps liability | 2,002 | 0 |
Long-term debt | 287,000 | 273,000 |
Commitments and contingencies (Note 13) | ' | ' |
Partners’ capital: | ' | ' |
Series A Preferred Units (30,158,619 units issued and outstanding for both dates) | 204,599 | 204,599 |
Common unitholders (22,786,101 and 22,925,092 units issued and outstanding at December 31, 2013 and June 30, 2014, respectively) | 452,245 | 461,149 |
General partner interest (2.1% with 1,127,755 general partner units outstanding for both dates) | -610,418 | -610,290 |
Total Partners’ capital | 46,426 | 55,458 |
Total liabilities and Partners’ capital | $360,354 | $354,748 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Current assets: | ' | ' |
Accounts receivable, allowance for doubtful accounts | $225 | $69 |
Receivables from related parties, allowance for doubtful accounts | 0 | 0 |
Accumulated Depreciation and Impairments, Assets held for sale | 180 | 166 |
Accumulated Depreciation and Impairments, property plant and equipment | $181,001 | $171,056 |
Partners’ capital: | ' | ' |
Series A Preferred unitholders, units issued | 30,158,619 | 30,158,619 |
Series A Preferred unitholders, units outstanding | 30,158,619 | 30,158,619 |
Common unitholders, units issued | 22,925,092 | 22,786,101 |
Common unitholders, units outstanding | 22,925,092 | 22,786,101 |
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 | 6 Months Ended | ||
Share data in Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Capitalized interest | $80,390.97 | $455,973.82 | $160,160.90 | $697,659.82 |
Service revenue: | ' | ' | ' | ' |
Third party revenue | 35,197,000 | 34,174,000 | 69,433,000 | 66,231,000 |
Related party revenue | 10,600,000 | 11,504,000 | 22,806,000 | 23,983,000 |
Total revenue | 45,797,000 | 45,678,000 | 92,239,000 | 90,214,000 |
Expenses: | ' | ' | ' | ' |
Operating | 34,475,000 | 31,823,000 | 69,976,000 | 63,309,000 |
General and administrative | 4,371,000 | 4,490,000 | 8,857,000 | 9,157,000 |
Total expenses | 38,846,000 | 36,313,000 | 78,833,000 | 72,466,000 |
Gain on sale of assets | 575,000 | 339,000 | 972,000 | 123,000 |
Operating income | 7,526,000 | 9,704,000 | 14,378,000 | 17,871,000 |
Other income (expense): | ' | ' | ' | ' |
Equity earnings (loss) in unconsolidated affiliate | 258,000 | -118,000 | 54,000 | -173,000 |
Interest expense (net of capitalized interest of $456, $80, $698, and $160, respectively) | -4,031,000 | -4,559,000 | -6,686,000 | -7,291,000 |
Income from continuing operations before income taxes | 3,753,000 | 5,027,000 | 7,746,000 | 10,407,000 |
Provision for income taxes | 134,000 | 93,000 | 234,000 | 166,000 |
Income from continuing operations | 3,619,000 | 4,934,000 | 7,512,000 | 10,241,000 |
Income from discontinued operations | 0 | 1,231,000 | 0 | 1,947,000 |
Net income | 3,619,000 | 6,165,000 | 7,512,000 | 12,188,000 |
Allocation of net income for calculation of earnings per unit: | ' | ' | ' | ' |
General partner interest in net income | 96,000 | 129,000 | 189,000 | 316,000 |
Preferred interest in net income | 5,391,000 | 5,391,000 | 10,782,000 | 10,782,000 |
Income (loss) available to limited partners | ($1,868,000) | $645,000 | ($3,459,000) | $1,090,000 |
Basic and diluted net loss from continuing operations per common unit | ($0.08) | ($0.02) | ($0.15) | ($0.03) |
Basic and diluted net income from discontinued operations per common unit | $0 | $0.05 | $0 | $0.08 |
Basic and diluted net income (loss) per common unit | ($0.08) | $0.03 | ($0.15) | $0.05 |
Diluted net loss from continuing operations per common unit | ($0.08) | ($0.02) | ($0.15) | ($0.03) |
Diluted net income from discontinued operations per common unit | $0 | $0.05 | $0 | $0.08 |
Net Income (Loss), Net of Tax, Per Outstanding Limited Partnership Unit, Diluted | ($0.08) | $0.03 | ($0.15) | $0.05 |
Weighted average common units outstanding - basic | 22,925 | 22,681 | 22,910 | 22,678 |
Weighted average common units outstanding - diluted | 22,925 | 22,681 | 22,910 | 22,678 |
CONSOLIDATED_STATEMENTS_OF_OPE1
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Statement [Abstract] | ' | ' | ' | ' |
Capitalized interest | $80,390.97 | $455,973.82 | $160,160.90 | $697,659.82 |
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] |
Balance at Dec. 31, 2013 | $55,458,000 | $461,149,000 | $204,599,000 | ($610,290,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' |
Net income | 7,512,000 | -3,426,000 | 10,782,000 | 156,000 |
Equity-based incentive compensation | 529,000 | 518,000 | ' | 11,000 |
Profits interest contribution | 74,000 | ' | ' | 74,000 |
Distributions | -17,147,000 | -5,996,000 | -10,782,000 | -369,000 |
Balance at Jun. 30, 2014 | $46,426,000 | $452,245,000 | $204,599,000 | ($610,418,000) |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Other Significant Noncash Transaction, Value of Consideration Received | $0 | $207 |
Cash flows from operating activities: | ' | ' |
Net income | 7,512 | 12,188 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Provision for uncollectible receivables from third parties | 156 | -397 |
Depreciation and amortization | 12,771 | 11,734 |
Amortization and write-off of debt issuance costs | 398 | 2,932 |
Unrealized loss related to interest rate swaps | 2,002 | 0 |
Gain on sale of assets | 972 | 998 |
Equity-based incentive compensation | 529 | 1,018 |
Equity (earnings) loss in unconsolidated affiliate | 54 | -173 |
Changes in assets and liabilities | ' | ' |
Increase in accounts receivable | -474 | -2,962 |
Decrease in receivables from related parties | 18 | 806 |
Decrease in prepaid insurance | 1,016 | 500 |
Decrease in other current assets | 336 | 1 |
Decrease in other assets | 114 | 30 |
Decrease in accounts payable | -791 | -1,388 |
Decrease in accrued interest payable | -312 | -98 |
Decrease in accrued interest payable to related parties | 0 | -304 |
Increase in accrued property taxes | 310 | 78 |
Increase in unearned revenue | 1,973 | 516 |
Increase (decrease) in unearned revenue from related parties | 125 | -55 |
Decrease in accrued payroll | -2,284 | -1,342 |
Decrease in other accrued liabilities | -2,499 | -683 |
Net cash provided by operating activities | 19,874 | 21,749 |
Cash flows from investing activities: | ' | ' |
Capital expenditures | -18,236 | -31,952 |
Proceeds from sale of assets | 1,086 | 1,178 |
Investment in unconsolidated affiliate | 0 | -17,000 |
Net cash used in investing activities | -17,150 | -47,774 |
Cash flows from financing activities: | ' | ' |
Payment on insurance premium financing agreement | -1,235 | -1,001 |
Debt issuance costs | 0 | -3,589 |
Payments on long-term payable to related party | 0 | -2,681 |
Borrowings under credit facility | 31,000 | 314,411 |
Payments under credit facility | -17,000 | -263,000 |
Capital contribution related to profits interest (see Note 14) | 74 | 74 |
Distributions | -17,147 | -16,518 |
Net cash provided by (used in) financing activities | -4,308 | 27,696 |
Net increase (decrease) in cash and cash equivalents | -1,584 | 1,671 |
Cash and cash equivalents at beginning of period | 3,182 | 3,177 |
Cash and cash equivalents at end of period | 1,598 | 4,848 |
Supplemental disclosure of cash flow information: | ' | ' |
Increase in accounts payable related to purchase of property, plant and equipment | 855 | 2,254 |
Increase in accrued liabilities related to insurance premium financing agreement | $2,494 | $2,610 |
ORGANIZATION_AND_NATURE_OF_BUS
ORGANIZATION AND NATURE OF BUSINESS | 6 Months Ended |
Jun. 30, 2014 | |
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-two 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 | 6 Months Ended |
Jun. 30, 2014 | |
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 six months ended June 30, 2013 and 2014, the consolidated statement of changes in partners’ capital for the six months ended June 30, 2014, the statement of cash flows for the six months ended June 30, 2013 and 2014, and the consolidated balance sheet as of June 30, 2014 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 2013 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, 2013 filed with the Securities and Exchange Commission (the “SEC”) on March 12, 2014 (the “2013 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 2013 Form 10-K. A reclassification has been made to the consolidated statements of operations for the three and six months ended June 30, 2013 to reflect a recasting of amounts related to discontinued operations (see Note 3). 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. |
Discontinued_Operations_Notes
Discontinued Operations (Notes) | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | ' | ||||||
DISCONTINUED OPERATIONS | |||||||
Northumberland, PA Asphalt Facility | |||||||
On November 1, 2013, the Partnership entered into a litigation settlement in which title to its Northumberland, Pennsylvania asphalt facility was conveyed on November 21, 2013 to the counterparty to the settlement agreement in return for complete indemnification from any and all environmental liabilities or lawsuits related to the facility. The Partnership recognized a loss on the disposal of the facility of $0.6 million in 2013. The financial results of the Partnership’s operations related to the Northumberland asphalt facility are reflected as discontinued operations in the consolidated statements of operations. All prior periods presented have been recast to reflect the discontinued operations. | |||||||
The amounts of revenue and costs reported in discontinued operations are set forth in the table below for the period indicated: | |||||||
Three Months ended June 30, | Six Months ended June 30, | ||||||
2013 | 2013 | ||||||
Total revenue | $ | 164 | $ | 328 | |||
Expenses: | |||||||
Operating | 28 | 56 | |||||
Income from discontinued operations | $ | 136 | $ | 272 | |||
Basic and diluted net income from discontinued operations per common unit | $ | 0.01 | $ | 0.01 | |||
The following table discloses the major classes of discontinued assets and liabilities related to the Northumberland asphalt facility at the disposal date: | |||||||
21-Nov-13 | |||||||
(in thousands) | |||||||
Assets | |||||||
Accounts Receivable | $ | 4 | |||||
Assets of discontinued operations | $ | 4 | |||||
Liabilities | |||||||
Accounts Payable | $ | 13 | |||||
Deferred Revenue | 28 | ||||||
Other liabilities | 84 | ||||||
Liabilities of discontinued operations | $ | 125 | |||||
Thompson to Webster Pipeline System | |||||||
In September 2013, the Partnership experienced an oil spill on its Thompson to Webster Gathering System. As the costs associated with future maintenance of the pipeline and the potential future realizable cash flows from this pipeline were assessed, the Partnership determined that it was not economically feasible for it to continue to operate the pipeline. The Partnership assessed the recoverability of the carrying value of this asset and determined it was impaired. This resulted in $5.7 million of impairment expense being recorded in 2013, which reduced the carrying value of this pipeline to the discounted future net cash flows the Partnership expected to realize from this asset. During the discussions with the current shipper on necessary future maintenance and the possibility of idling the system, the shipper expressed interest in purchasing the system. On December 30, 2013, the sale to the shipper was finalized. The financial information of the Thompson to Webster pipeline facility is reflected as discontinued operations in the consolidated statements of operations. All prior periods presented have been recast to reflect the discontinued operations. | |||||||
The amounts of revenue and costs reported in discontinued operations are set forth in the table below for the period indicated: | |||||||
Three Months ended June 30 | Six Months ended June 30, | ||||||
2013 | 2013 | ||||||
Total revenue | $ | 456 | $ | 1,340 | |||
Expenses: | |||||||
Operating | 242 | 540 | |||||
Gain on sale of assets | 881 | 875 | |||||
Income from discontinued operations | $ | 1,095 | $ | 1,675 | |||
Basic and diluted net income from discontinued operations per common unit | $ | 0.05 | $ | 0.07 | |||
The following table discloses the major classes of discontinued assets and liabilities related to the Thompson to Webster system at the disposal date: | |||||||
30-Dec-13 | |||||||
(in thousands) | |||||||
Assets | |||||||
Accounts Receivable | $ | 400 | |||||
Property, plant and equipment, net | 1,000 | ||||||
Assets of discontinued operations | $ | 1,400 | |||||
Liabilities | |||||||
Accounts Payable | $ | 1 | |||||
Deferred Revenue | 148 | ||||||
Other liabilities | 339 | ||||||
Liabilities of discontinued operations | $ | 488 | |||||
PROPERTY_PLANT_AND_EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||||
PROPERTY, PLANT AND EQUIPMENT | ' | |||||||||
PROPERTY, PLANT AND EQUIPMENT | ||||||||||
Estimated Useful Lives (Years) | December 31, 2013 | June 30, 2014 | ||||||||
(dollars in thousands) | ||||||||||
Land | N/A | $ | 16,374 | $ | 17,362 | |||||
Land improvements | 20-Oct | 6,306 | 6,343 | |||||||
Pipelines and facilities | 30-May | 144,261 | 157,118 | |||||||
Storage and terminal facilities | Oct-35 | 234,208 | 237,572 | |||||||
Transportation equipment | 10-Mar | 16,735 | 15,098 | |||||||
Office property and equipment and other | 20-Mar | 26,371 | 26,888 | |||||||
Pipeline linefill and tank bottoms | N/A | 10,193 | 10,193 | |||||||
Construction-in-progress | N/A | 14,008 | 14,042 | |||||||
Property, plant and equipment, gross | 468,456 | 484,616 | ||||||||
Accumulated depreciation | (171,056 | ) | (181,001 | ) | ||||||
Property, plant and equipment, net | $ | 297,400 | $ | 303,615 | ||||||
Depreciation expense for the three months ended June 30, 2013 and 2014 was $5.9 million and $6.4 million, respectively, and depreciation expense for the six months ended June 30, 2013 and 2014 was $11.7 million and $12.8 million, respectively. |
DEBT
DEBT | 6 Months Ended | |
Jun. 30, 2014 | ||
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 August 1, 2014, approximately $283.0 million of revolver borrowings and $0.5 million of letters of credit were outstanding under the credit facility, leaving the Partnership with approximately $116.5 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 notes 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 June 30, 2014, the Partnership’s consolidated total leverage ratio was 3.75 to 1.00 and the consolidated interest coverage ratio was 8.74 to 1.00. The Partnership was in compliance with all covenants of its credit agreement as of June 30, 2014. | ||
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 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 six months ended June 30, 2013, the Partnership capitalized debt issuance costs of $0.2 million related to the prior credit facility. During the three and six months ended June 30, 2013, the Partnership capitalized debt issuance costs of $3.4 million related to the current credit facility for both periods. The Partnership did not incur any debt issuance costs in the three and six months ended June 30, 2014. 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 June 30, 2013 and 2014 was $0.5 million and $0.2 million, respectively. Interest expense related to debt issuance cost amortization for the six months ended June 30, 2013 and 2014 was $0.9 million and $0.4 million, respectively. | ||
During the three months ended June 30, 2013 and 2014, the weighted average interest rate under the Partnership’s credit agreement was 5.05% and 3.40%, respectively, resulting in interest expense of approximately $3.2 million and $2.5 million, respectively. During the six months ended June 30, 2013 and 2014, the weighted average interest rate under the Partnership’s credit agreement was 5.09% and 3.41%, respectively, resulting in interest expense of approximately $6.1 million and $4.8 million, respectively. As of June 30, 2014, borrowings under the Partnership’s amended and restated credit agreement bore interest at a weighted average interest rate of 3.38%. | ||
During the three months ended June 30, 2013 and 2014, the Partnership capitalized interest of $0.5 million and $0.1 million, respectively. During the six months ended June 30, 2013 and 2014, the Partnership capitalized interest of $0.7 million and $0.2 million, respectively. | ||
The Partnership is exposed to market risk for changes in interest rates related to its credit facility. Interest rate swap agreements are used to manage a portion of the exposure related to changing interest rates by converting floating-rate debt to fixed-rate debt. In March 2014 the Partnership entered into two interest rate swap agreements with an aggregate notional amount of $200.0 million. The first agreement has a notional amount of $100.0 million and became effective June 28, 2014 and matures on June 28, 2018. Under the terms of the first interest rate swap agreement, the Partnership will pay a fixed rate of 1.45% and will receive one-month LIBOR with monthly settlement. The second agreement has a notional amount of $100.0 million and becomes effective January 28, 2015 and matures on January 28, 2019. Under the terms of the second interest rate swap agreement, the Partnership will pay a fixed rate of 1.97% and will receive one-month LIBOR with monthly settlement. The fair market value of the interest rate swaps at June 30, 2014 is a liability of $2.0 million and is recorded in long-term derivative liabilities on the consolidated balance sheet. The interest rate swaps do not receive hedge accounting treatment under ASC 815 - Derivatives and Hedging. Changes in the fair value of the interest rate swaps are recorded in interest expense in the statements of operations. |
NET_INCOME_PER_LIMITED_PARTNER
NET INCOME PER LIMITED PARTNER UNIT | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
NET INCOME PER LIMITED PARTNER UNIT | ' | |||||||||||||||
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 June 30, | Six Months ended June 30, | |||||||||||||||
2013 | 2014 | 2013 | 2014 | |||||||||||||
Net income from continuing operations | $ | 4,934 | $ | 3,619 | $ | 10,241 | $ | 7,512 | ||||||||
Income from discontinued operations | 1,231 | — | 1,947 | — | ||||||||||||
Net income | $ | 6,165 | $ | 3,619 | $ | 12,188 | $ | 7,512 | ||||||||
General partner interest in net income | 129 | 96 | 316 | 189 | ||||||||||||
Preferred interest in net income | 5,391 | 5,391 | 10,782 | 10,782 | ||||||||||||
Income (loss) available to limited partners | $ | 645 | $ | (1,868 | ) | $ | 1,090 | $ | (3,459 | ) | ||||||
Basic and diluted weighted average number of units: | ||||||||||||||||
Common units | 22,681 | 22,925 | 22,678 | 22,910 | ||||||||||||
Restricted and phantom units | 737 | 727 | 651 | 606 | ||||||||||||
Basic and diluted net loss from continuing operations per common unit | $ | (0.02 | ) | $ | (0.08 | ) | $ | (0.03 | ) | $ | (0.15 | ) | ||||
Basic and diluted net income from discontinued operations per common unit | $ | 0.05 | $ | — | $ | 0.08 | $ | — | ||||||||
Basic and diluted net income (loss) per common unit | $ | 0.03 | $ | (0.08 | ) | $ | 0.05 | $ | (0.15 | ) | ||||||
DISTRIBUTIONS
DISTRIBUTIONS | 6 Months Ended |
Jun. 30, 2014 | |
Partners' Capital Account, Distributions [Abstract] | ' |
DISTRIBUTIONS | ' |
DISTRIBUTIONS | |
On July 22, 2014, the Board approved a distribution of $0.17875 per Preferred Unit, or a total distribution of $5.4 million, for the quarter ending June 30, 2014. The Partnership will pay this distribution on the preferred units on August 14, 2014 to unitholders of record as of August 4, 2014. | |
In addition, on July 22, 2014, the Board declared a cash distribution of $0.1325 per unit on its outstanding common units, a 1.9% increase over the previous quarter’s distribution. The distribution will be paid on August 14, 2014 to unitholders of record on August 4, 2014. The distribution is for the three months ended June 30, 2014. The total distribution will be approximately $3.2 million, with approximately $3.0 million and $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 | 6 Months Ended |
Jun. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
RELATED PARTY TRANSACTIONS | ' |
RELATED PARTY TRANSACTIONS | |
The Partnership provides crude oil gathering, transportation, terminalling and storage services to Vitol as well as certain operating, strategic assessment, economic evaluation and project design services. For the three months ended June 30, 2013 and 2014, the Partnership recognized revenues of $11.4 million and $10.3 million, respectively, for services provided to Vitol. For the six months ended June 30, 2013 and 2014, the Partnership recognized revenues of $23.9 million and $22.4 million, respectively, for services provided to Vitol. As of December 31, 2013 and June 30, 2014, the Partnership had receivables from Vitol of $3.0 million and $3.1 million, respectively. | |
The Partnership also provides operating and administrative services to Advantage Pipeline. For the three months ended June 30, 2013 and 2014, the Partnership earned revenues of $0.1 million and $0.3 million, respectively, for services provided to Advantage Pipeline. For the six months ended June 30, 2013 and 2014, the Partnership earned revenues of $0.1 million and $0.4 million, respectively, for services provided to Advantage Pipeline. As of December 31, 2013 and June 30, 2014, the Partnership had receivables from Advantage Pipeline of $0.2 million and less than $0.1 million, respectively. |
LONGTERM_INCENTIVE_PLAN
LONG-TERM INCENTIVE PLAN | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||
LONG-TERM INCENTIVE PLAN | ' | ||||||
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. Effective April 29, 2014, the Partnership's unitholders approved an amendment to the LTIP to increase the number of common units reserved for issuance under the incentive plan by 1,500,000 common units from 2,600,000 common units to 4,100,000 common units. The common units are 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 2011, 2012 and 2013, 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 the 2011 and 2012 grants was less than $0.1 million while the fair value of the restricted units for the 2013 grant was $0.1 million. | |||||||
In March 2012, 2013 and 2014 grants for 353,300, 251,106 and 276,773 phantom units, respectively, were made, which vest on January 1, 2015, January 1, 2016 and January 1, 2017, 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 $6.76, $8.75 and $9.06 per unit, respectively, which is the closing market price on the grant date of the awards. The value of these award grants was approximately $2.4 million, $2.2 million and $2.5 million, respectively, on their grant date. The unrecognized estimated compensation cost of outstanding phantom units at June 30, 2014 was $2.9 million, which will be recognized over the remaining vesting period. | |||||||
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 June 30, 2014 was $1.8 million and will be expensed over the remaining vesting period. | |||||||
The Partnership’s equity-based incentive compensation expense for the three months ended June 30, 2013 and 2014 was $0.5 million and $0.6 million, respectively. The Partnership’s equity-based incentive compensation expense for each of the six months ended June 30, 2013 and 2014 was $1.0 million. | |||||||
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, 2013 | 1,058,162 | $ | 7.03 | ||||
Granted | 276,773 | 9.06 | |||||
Vested | 198,936 | 8.23 | |||||
Forfeited | 9,615 | 8.24 | |||||
Nonvested at June 30, 2014 | 1,126,384 | $ | 7.31 | ||||
EMPLOYEE_BENEFIT_PLAN
EMPLOYEE BENEFIT PLAN | 6 Months Ended |
Jun. 30, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ' |
EMPLOYEE BENEFIT PLAN | ' |
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 $0.4 million for the each of the three months ended June 30, 2013 and 2014 for discretionary contributions under the 401(k) Plan. The Partnership recognized expense of $0.7 million for each of the six months ended June 30, 2013 and 2014 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 $0.3 million and $0.2 million for the three months ended June 30, 2013 and 2014, respectively, for discretionary profit sharing contributions under the 401(k) Plan. The Partnership recognized expense of $0.5 million and $0.3 million for the six months ended June 30, 2013 and 2014, respectively, for discretionary profit sharing contributions under the 401(k) Plan. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
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’s recurring financial assets and liabilities subject to fair value measurements and the necessary disclosures are as follows (in thousands): | ||||||||||||||
Fair Value Measurements as of June 30, 2014 | ||||||||||||||
Description | Total | Quoted Prices | Significant | Significant | ||||||||||
in Active | Other | Unobservable | ||||||||||||
Markets for | Observable | Inputs | ||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||
(Level 1) | (Level 2) | |||||||||||||
Liabilities: | ||||||||||||||
Interest rate swaps liability | $ | 2,002 | — | — | $ | 2,002 | ||||||||
Total | $ | 2,002 | — | — | $ | 2,002 | ||||||||
The Partnership had no recurring financial assets or liabilities subject to fair value measurements as of December 31, 2013. | ||||||||||||||
The following table sets forth a reconciliation of changes in the fair value of the Partnership’s financial liabilities classified as Level 3 in the fair value hierarchy (in thousands): | ||||||||||||||
Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||
Three Months ended June 30, 2014 | Six Months ended June 30, 2014 | |||||||||||||
Beginning Balance | $ | (355 | ) | $ | — | |||||||||
Total gains or losses (realized/unrealized): | ||||||||||||||
Included in earnings(1) | (1,647 | ) | (2,002 | ) | ||||||||||
Included in other comprehensive income | — | — | ||||||||||||
Purchases, issuances, and settlements | — | — | ||||||||||||
Transfers in and/or out of Level 3 | — | — | ||||||||||||
Ending Balance | $ | (2,002 | ) | $ | (2,002 | ) | ||||||||
The amount of total income for the period included in earnings attributable to the change in unrealized gains (losses) for liabilities still held at the reporting date | $ | (1,647 | ) | $ | (2,002 | ) | ||||||||
____________________ | ||||||||||||||
-1 | Amounts reported as included in earnings are reported as interest expense on the statements of operations. | |||||||||||||
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 June 30, 2014, 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 June 30, 2014 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 | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
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 the Eagle North System, 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 the Eagle North system. | |||||||||||||||||
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 42 terminalling and storage facilities located in twenty-one 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): | |||||||||||||||||
Three Months ended June 30, | Six Months ended June 30, | ||||||||||||||||
2013 | 2014 | 2013 | 2014 | ||||||||||||||
Crude Oil Terminalling and Storage Services | |||||||||||||||||
Service revenue | |||||||||||||||||
Third party revenue | $ | 3,066 | $ | 2,305 | $ | 5,933 | $ | 5,145 | |||||||||
Related party revenue | 4,580 | 3,131 | 10,018 | 7,645 | |||||||||||||
Total revenue for reportable segments | 7,646 | 5,436 | 15,951 | 12,790 | |||||||||||||
Operating expenses (excluding depreciation and amortization) | 988 | 1,005 | 1,804 | 1,974 | |||||||||||||
Operating margin (excluding depreciation and amortization) | 6,658 | 4,431 | 14,147 | 10,816 | |||||||||||||
Total assets (end of period) | $ | 66,884 | $ | 67,428 | $ | 66,884 | $ | 67,428 | |||||||||
Crude Oil Pipeline Services | |||||||||||||||||
Service revenue | |||||||||||||||||
Third party revenue | $ | 2,904 | $ | 4,434 | $ | 6,182 | $ | 7,533 | |||||||||
Related party revenue | 1,139 | 1,949 | 2,372 | 3,836 | |||||||||||||
Total revenue for reportable segments | 4,043 | 6,383 | 8,554 | 11,369 | |||||||||||||
Operating expenses (excluding depreciation and amortization) | 3,381 | 4,735 | 7,089 | 9,117 | |||||||||||||
Operating margin (excluding depreciation and amortization) | 662 | 1,648 | 1,465 | 2,252 | |||||||||||||
Total assets (end of period) | $ | 149,321 | $ | 169,480 | $ | 149,321 | 169,480 | ||||||||||
Crude Oil Trucking and Producer Field Services | |||||||||||||||||
Service revenue | |||||||||||||||||
Third party revenue | $ | 12,356 | $ | 12,166 | $ | 24,373 | $ | 26,016 | |||||||||
Related party revenue | 5,256 | 5,076 | 10,565 | 10,624 | |||||||||||||
Total revenue for reportable segments | 17,612 | 17,242 | 34,938 | 36,640 | |||||||||||||
Operating expenses (excluding depreciation and amortization) | 15,024 | 15,646 | 30,243 | 32,627 | |||||||||||||
Operating margin (excluding depreciation and amortization) | 2,588 | 1,596 | 4,695 | 4,013 | |||||||||||||
Total assets (end of period) | $ | 21,204 | $ | 25,258 | $ | 21,204 | $ | 25,258 | |||||||||
Asphalt Services | |||||||||||||||||
Service revenue | |||||||||||||||||
Third party revenue | $ | 15,848 | $ | 16,292 | $ | 29,743 | $ | 30,739 | |||||||||
Related party revenue | 529 | 444 | 1,028 | 701 | |||||||||||||
Total revenue for reportable segments | 16,377 | 16,736 | 30,771 | 31,440 | |||||||||||||
Operating expenses (excluding depreciation and amortization) | 6,608 | 6,635 | 12,615 | 13,487 | |||||||||||||
Operating margin (excluding depreciation and amortization) | 9,769 | 10,101 | 18,156 | 17,953 | |||||||||||||
Total assets (end of period) | $ | 108,495 | $ | 98,188 | $ | 108,495 | $ | 98,188 | |||||||||
Total operating margin (excluding depreciation and amortization)(1) | $ | 19,677 | $ | 17,776 | $ | 38,463 | $ | 35,034 | |||||||||
____________________ | |||||||||||||||||
(1)The following table reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes (in thousands): | |||||||||||||||||
Three Months ended June 30, | Six Months ended June 30, | ||||||||||||||||
2013 | 2014 | 2013 | 2014 | ||||||||||||||
Operating margin (excluding depreciation and amortization) from continuing operations | $ | 19,677 | $ | 17,776 | $ | 38,463 | $ | 35,034 | |||||||||
Depreciation and amortization on continuing operations | (5,822 | ) | $ | (6,454 | ) | (11,558 | ) | (12,771 | ) | ||||||||
General and administrative expenses | (4,490 | ) | (4,371 | ) | (9,157 | ) | (8,857 | ) | |||||||||
Gain on sale of assets | $ | 339 | $ | 575 | 123 | 972 | |||||||||||
Interest expense | (4,559 | ) | (4,031 | ) | (7,291 | ) | (6,686 | ) | |||||||||
Equity gain (loss) in unconsolidated entity | $ | (118 | ) | $ | 258 | (173 | ) | 54 | |||||||||
Income from continuing operations before income taxes | $ | 5,027 | $ | 3,753 | $ | 10,407 | $ | 7,746 | |||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
COMMITMENT AND CONTINGENCIES | ' |
COMMITMENTS 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. | |
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 SemGroup Corporation (together with its predecessors including SemGroup, L.P., subsidiaries and affiliates referred to herein as “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 related to the disputed 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 Partnership intends to vigorously defend these claims. No trial date has been set by the court. The parties are engaged in discovery and continuing settlement negotiations. The Partnership believes that any settlement will not have a material adverse effect on the Partnership’s financial condition or results of operations. | |
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 contested 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, finding a shortage in the Partnership’s Cushing Terminal and Oklahoma pipeline system of approximately 148,000 barrels and an excess of approximately 130,000 in SemCorp’s physical inventory. The Special Master noted that she was unable to more precisely trace the shortage and length (excess held by SemCorp) due to the manner in which SemCorp operated the Cushing Terminal and maintained related records. On June 25, 2013, the Partnership filed a notice of non-objection and motion to adopt the Special Master’s report, which was granted on February 12, 2014. 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. On February 20, 2014, the Court denied summary judgment motions of both SemCorp and the Partnership. The Court allowed for additional discovery to take place and referred all discovery matters to the Special Master, as appropriate, and made other procedural rulings. Discovery proceedings are moving forward, and the Partnership reasserted its fraud claims in accordance with the Court’s directives. The Partnership intends to seek additional damages from SemCorp related to various injuries to the Partnership as a result of SemCorp’s refusal to return the Partnership’s crude oil or to pay the Partnership for the fair market value of the missing oil. A status conference is scheduled for November 20, 2014. | |
In late November 2013, one of the Partnership’s pipelines in East Texas leaked approximately 500 barrels of oil. The response and clean-up cost is expected to total approximately $2.1 million, all of which is reflected in the Partnership’s 2013 results of operations. The Partnership made a claim against its pollution liability insurance provider (Aspen) to cover the expenses related to the spill and has paid its deductible of $250,000. In early February 2014, Aspen filed a lawsuit against the Partnership to rescind the policy. The Partnership believes the lawsuit is an attempt by Aspen to avoid paying a valid claim. The Partnership plans to vigorously defend this suit and has filed counterclaims. Discovery is underway. | |
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 | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Income Tax Disclosure [Abstract] | ' | |||
INCOME TAXES | ' | |||
INCOME TAXES | ||||
The anticipated after-tax economic benefit of an investment in the Partnership’s 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 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 June 30, 2014 are presented below (dollars in thousands): | ||||
Deferred tax assets | ||||
Difference in bases of property, plant and equipment | $ | 964 | ||
Deferred tax asset | 964 | |||
Less: valuation allowance | (964 | ) | ||
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 | 6 Months Ended |
Jun. 30, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
RECENTLY ISSUED ACCOUNTING STANDARDS | 'RECENTLY ISSUED ACCOUNTING STANDARDSIn 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 adopted this update in January 2014, and the impact was not material.In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements and Property, Plant, and Equipment.†The amendments in this update change the criteria for reporting discontinued operations for all public and nonpublic entities. The amendments also require new disclosures about discontinued operations and disposals of components of an entity that do not qualify for discontinued operations reporting. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. 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, 2015.In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.†The amendments in this Update create Topic 606, Revenue from Contracts with Customers, and supersede the revenue recognition requirements in Topic 605, Revenue Recognition, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. In addition, the amendments supersede the cost guidance in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts, and create new Subtopic 340-40, Other Assets and Deferred Costs-Contracts with Customers. In summary, the core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. 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, 2017. |
Discontinued_Operations_DISCON
Discontinued Operations DISCONTINUED OPERATIONS (Tables) | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | ' | ||||||
The amounts of revenue and costs reported in discontinued operations are set forth in the table below for the period indicated: | |||||||
Three Months ended June 30, | Six Months ended June 30, | ||||||
2013 | 2013 | ||||||
Total revenue | $ | 164 | $ | 328 | |||
Expenses: | |||||||
Operating | 28 | 56 | |||||
Income from discontinued operations | $ | 136 | $ | 272 | |||
Basic and diluted net income from discontinued operations per common unit | $ | 0.01 | $ | 0.01 | |||
The following table discloses the major classes of discontinued assets and liabilities related to the Northumberland asphalt facility at the disposal date: | |||||||
21-Nov-13 | |||||||
(in thousands) | |||||||
Assets | |||||||
Accounts Receivable | $ | 4 | |||||
Assets of discontinued operations | $ | 4 | |||||
Liabilities | |||||||
Accounts Payable | $ | 13 | |||||
Deferred Revenue | 28 | ||||||
Other liabilities | 84 | ||||||
Liabilities of discontinued operations | $ | 125 | |||||
The amounts of revenue and costs reported in discontinued operations are set forth in the table below for the period indicated: | |||||||
Three Months ended June 30 | Six Months ended June 30, | ||||||
2013 | 2013 | ||||||
Total revenue | $ | 456 | $ | 1,340 | |||
Expenses: | |||||||
Operating | 242 | 540 | |||||
Gain on sale of assets | 881 | 875 | |||||
Income from discontinued operations | $ | 1,095 | $ | 1,675 | |||
Basic and diluted net income from discontinued operations per common unit | $ | 0.05 | $ | 0.07 | |||
The following table discloses the major classes of discontinued assets and liabilities related to the Thompson to Webster system at the disposal date: | |||||||
30-Dec-13 | |||||||
(in thousands) | |||||||
Assets | |||||||
Accounts Receivable | $ | 400 | |||||
Property, plant and equipment, net | 1,000 | ||||||
Assets of discontinued operations | $ | 1,400 | |||||
Liabilities | |||||||
Accounts Payable | $ | 1 | |||||
Deferred Revenue | 148 | ||||||
Other liabilities | 339 | ||||||
Liabilities of discontinued operations | $ | 488 | |||||
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY, PLANT AND EQUIPMENT (Tables) | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||||
Schedule of Property, Plant and Equipment | ' | |||||||||
Estimated Useful Lives (Years) | December 31, 2013 | June 30, 2014 | ||||||||
(dollars in thousands) | ||||||||||
Land | N/A | $ | 16,374 | $ | 17,362 | |||||
Land improvements | 20-Oct | 6,306 | 6,343 | |||||||
Pipelines and facilities | 30-May | 144,261 | 157,118 | |||||||
Storage and terminal facilities | Oct-35 | 234,208 | 237,572 | |||||||
Transportation equipment | 10-Mar | 16,735 | 15,098 | |||||||
Office property and equipment and other | 20-Mar | 26,371 | 26,888 | |||||||
Pipeline linefill and tank bottoms | N/A | 10,193 | 10,193 | |||||||
Construction-in-progress | N/A | 14,008 | 14,042 | |||||||
Property, plant and equipment, gross | 468,456 | 484,616 | ||||||||
Accumulated depreciation | (171,056 | ) | (181,001 | ) | ||||||
Property, plant and equipment, net | $ | 297,400 | $ | 303,615 | ||||||
NET_INCOME_PER_LIMITED_PARTNER1
NET INCOME PER LIMITED PARTNER UNIT (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
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 June 30, | Six Months ended June 30, | |||||||||||||||
2013 | 2014 | 2013 | 2014 | |||||||||||||
Net income from continuing operations | $ | 4,934 | $ | 3,619 | $ | 10,241 | $ | 7,512 | ||||||||
Income from discontinued operations | 1,231 | — | 1,947 | — | ||||||||||||
Net income | $ | 6,165 | $ | 3,619 | $ | 12,188 | $ | 7,512 | ||||||||
General partner interest in net income | 129 | 96 | 316 | 189 | ||||||||||||
Preferred interest in net income | 5,391 | 5,391 | 10,782 | 10,782 | ||||||||||||
Income (loss) available to limited partners | $ | 645 | $ | (1,868 | ) | $ | 1,090 | $ | (3,459 | ) | ||||||
Basic and diluted weighted average number of units: | ||||||||||||||||
Common units | 22,681 | 22,925 | 22,678 | 22,910 | ||||||||||||
Restricted and phantom units | 737 | 727 | 651 | 606 | ||||||||||||
Basic and diluted net loss from continuing operations per common unit | $ | (0.02 | ) | $ | (0.08 | ) | $ | (0.03 | ) | $ | (0.15 | ) | ||||
Basic and diluted net income from discontinued operations per common unit | $ | 0.05 | $ | — | $ | 0.08 | $ | — | ||||||||
Basic and diluted net income (loss) per common unit | $ | 0.03 | $ | (0.08 | ) | $ | 0.05 | $ | (0.15 | ) | ||||||
LONGTERM_INCENTIVE_PLAN_Tables
LONG-TERM INCENTIVE PLAN (Tables) | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
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, 2013 | 1,058,162 | $ | 7.03 | ||||
Granted | 276,773 | 9.06 | |||||
Vested | 198,936 | 8.23 | |||||
Forfeited | 9,615 | 8.24 | |||||
Nonvested at June 30, 2014 | 1,126,384 | $ | 7.31 | ||||
FAIR_VALUE_MEASUREMENTS_Fair_V
FAIR VALUE MEASUREMENTS Fair Value Measurements (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | |||||||||||||
Fair Value, by Balance Sheet Grouping [Table Text Block] | ' | |||||||||||||
The Partnership’s recurring financial assets and liabilities subject to fair value measurements and the necessary disclosures are as follows (in thousands): | ||||||||||||||
Fair Value Measurements as of June 30, 2014 | ||||||||||||||
Description | Total | Quoted Prices | Significant | Significant | ||||||||||
in Active | Other | Unobservable | ||||||||||||
Markets for | Observable | Inputs | ||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||
(Level 1) | (Level 2) | |||||||||||||
Liabilities: | ||||||||||||||
Interest rate swaps liability | $ | 2,002 | — | — | $ | 2,002 | ||||||||
Total | $ | 2,002 | — | — | $ | 2,002 | ||||||||
The Partnership had no recurring financial assets or liabilities subject to fair value measurements as of December 31, 2013. |
FAIR_VALUE_MEASUREMENTS_Fair_V1
FAIR VALUE MEASUREMENTS Fair Value Measurements Reconciliation (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | |||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | ' | |||||||
The following table sets forth a reconciliation of changes in the fair value of the Partnership’s financial liabilities classified as Level 3 in the fair value hierarchy (in thousands): | ||||||||
Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||
Three Months ended June 30, 2014 | Six Months ended June 30, 2014 | |||||||
Beginning Balance | $ | (355 | ) | $ | — | |||
Total gains or losses (realized/unrealized): | ||||||||
Included in earnings(1) | (1,647 | ) | (2,002 | ) | ||||
Included in other comprehensive income | — | — | ||||||
Purchases, issuances, and settlements | — | — | ||||||
Transfers in and/or out of Level 3 | — | — | ||||||
Ending Balance | $ | (2,002 | ) | $ | (2,002 | ) | ||
The amount of total income for the period included in earnings attributable to the change in unrealized gains (losses) for liabilities still held at the reporting date | $ | (1,647 | ) | $ | (2,002 | ) | ||
____________________ | ||||||||
-1 | Amounts reported as included in earnings are reported as interest expense on the statements of operations. |
OPERATING_SEGMENTS_Tables
OPERATING SEGMENTS (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
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): | |||||||||||||||||
Three Months ended June 30, | Six Months ended June 30, | ||||||||||||||||
2013 | 2014 | 2013 | 2014 | ||||||||||||||
Crude Oil Terminalling and Storage Services | |||||||||||||||||
Service revenue | |||||||||||||||||
Third party revenue | $ | 3,066 | $ | 2,305 | $ | 5,933 | $ | 5,145 | |||||||||
Related party revenue | 4,580 | 3,131 | 10,018 | 7,645 | |||||||||||||
Total revenue for reportable segments | 7,646 | 5,436 | 15,951 | 12,790 | |||||||||||||
Operating expenses (excluding depreciation and amortization) | 988 | 1,005 | 1,804 | 1,974 | |||||||||||||
Operating margin (excluding depreciation and amortization) | 6,658 | 4,431 | 14,147 | 10,816 | |||||||||||||
Total assets (end of period) | $ | 66,884 | $ | 67,428 | $ | 66,884 | $ | 67,428 | |||||||||
Crude Oil Pipeline Services | |||||||||||||||||
Service revenue | |||||||||||||||||
Third party revenue | $ | 2,904 | $ | 4,434 | $ | 6,182 | $ | 7,533 | |||||||||
Related party revenue | 1,139 | 1,949 | 2,372 | 3,836 | |||||||||||||
Total revenue for reportable segments | 4,043 | 6,383 | 8,554 | 11,369 | |||||||||||||
Operating expenses (excluding depreciation and amortization) | 3,381 | 4,735 | 7,089 | 9,117 | |||||||||||||
Operating margin (excluding depreciation and amortization) | 662 | 1,648 | 1,465 | 2,252 | |||||||||||||
Total assets (end of period) | $ | 149,321 | $ | 169,480 | $ | 149,321 | 169,480 | ||||||||||
Crude Oil Trucking and Producer Field Services | |||||||||||||||||
Service revenue | |||||||||||||||||
Third party revenue | $ | 12,356 | $ | 12,166 | $ | 24,373 | $ | 26,016 | |||||||||
Related party revenue | 5,256 | 5,076 | 10,565 | 10,624 | |||||||||||||
Total revenue for reportable segments | 17,612 | 17,242 | 34,938 | 36,640 | |||||||||||||
Operating expenses (excluding depreciation and amortization) | 15,024 | 15,646 | 30,243 | 32,627 | |||||||||||||
Operating margin (excluding depreciation and amortization) | 2,588 | 1,596 | 4,695 | 4,013 | |||||||||||||
Total assets (end of period) | $ | 21,204 | $ | 25,258 | $ | 21,204 | $ | 25,258 | |||||||||
Asphalt Services | |||||||||||||||||
Service revenue | |||||||||||||||||
Third party revenue | $ | 15,848 | $ | 16,292 | $ | 29,743 | $ | 30,739 | |||||||||
Related party revenue | 529 | 444 | 1,028 | 701 | |||||||||||||
Total revenue for reportable segments | 16,377 | 16,736 | 30,771 | 31,440 | |||||||||||||
Operating expenses (excluding depreciation and amortization) | 6,608 | 6,635 | 12,615 | 13,487 | |||||||||||||
Operating margin (excluding depreciation and amortization) | 9,769 | 10,101 | 18,156 | 17,953 | |||||||||||||
Total assets (end of period) | $ | 108,495 | $ | 98,188 | $ | 108,495 | $ | 98,188 | |||||||||
Total operating margin (excluding depreciation and amortization)(1) | $ | 19,677 | $ | 17,776 | $ | 38,463 | $ | 35,034 | |||||||||
____________________ | |||||||||||||||||
(1)The following table reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes (in thousands): | |||||||||||||||||
Three Months ended June 30, | Six Months ended June 30, | ||||||||||||||||
2013 | 2014 | 2013 | 2014 | ||||||||||||||
Operating margin (excluding depreciation and amortization) from continuing operations | $ | 19,677 | $ | 17,776 | $ | 38,463 | $ | 35,034 | |||||||||
Depreciation and amortization on continuing operations | (5,822 | ) | $ | (6,454 | ) | (11,558 | ) | (12,771 | ) | ||||||||
General and administrative expenses | (4,490 | ) | (4,371 | ) | (9,157 | ) | (8,857 | ) | |||||||||
Gain on sale of assets | $ | 339 | $ | 575 | 123 | 972 | |||||||||||
Interest expense | (4,559 | ) | (4,031 | ) | (7,291 | ) | (6,686 | ) | |||||||||
Equity gain (loss) in unconsolidated entity | $ | (118 | ) | $ | 258 | (173 | ) | 54 | |||||||||
Income from continuing operations before income taxes | $ | 5,027 | $ | 3,753 | $ | 10,407 | $ | 7,746 | |||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 6 Months Ended | |||
Jun. 30, 2014 | ||||
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 June 30, 2014 are presented below (dollars in thousands): | ||||
Deferred tax assets | ||||
Difference in bases of property, plant and equipment | $ | 964 | ||
Deferred tax asset | 964 | |||
Less: valuation allowance | (964 | ) | ||
Net deferred tax asset | $ | — | ||
ORGANIZATION_AND_NATURE_OF_BUS1
ORGANIZATION AND NATURE OF BUSINESS (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2014 | |
Operating-segments | |
States | |
ORGANIZATION AND NATURE OF BUSINESS [Abstract] | ' |
Number of states in which entity operates (in states) | 22 |
Number of operating segments (in operating segments) | 4 |
Discontinued_Operations_Northu
Discontinued Operations Northumberland, PA Asphalt Facility (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Nov. 21, 2013 | |
Northumberland, PA Asphalt Facility [Member] | Northumberland, PA Asphalt Facility [Member] | Northumberland, PA Asphalt Facility [Member] | Northumberland, PA Asphalt Facility [Member] | ||||||
Asphalt Services [Member] | Asphalt Services [Member] | Asphalt Services [Member] | Asphalt Services [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Revenue | ' | ' | ' | ' | ' | $164,000 | $328,000 | ' | ' |
Operating | ' | ' | ' | ' | ' | 28,000 | 56,000 | ' | ' |
Loss on disposal of facility | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' |
Income from discontinued operations | 0 | 1,231,000 | 0 | 1,947,000 | ' | 136,000 | 272,000 | ' | ' |
Basic income (loss) from discontinued operations per common units | $0 | $0.05 | $0 | $0.08 | ' | $0.01 | $0.01 | ' | ' |
Diluted income (loss) from discontinued operations per common unit | $0 | $0.05 | $0 | $0.08 | ' | $0.01 | $0.01 | ' | ' |
Accounts Receivable | 12,562,000 | ' | 12,562,000 | ' | 12,244,000 | ' | ' | ' | 4,000 |
Assets of discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | 4,000 |
Accounts Payable | 6,601,000 | ' | 6,601,000 | ' | 6,537,000 | ' | ' | ' | 13,000 |
Deferred Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 28,000 |
Other liabilities | ' | ' | ' | ' | ' | ' | ' | ' | 84,000 |
Liabilities of discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | $125,000 |
Discontinued_Operations_Thomso
Discontinued Operations Thomson-to-Webster system (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Nov. 21, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 30, 2013 | |
Northumberland, PA Asphalt Facility [Member] | Northumberland, PA Asphalt Facility [Member] | Northumberland, PA Asphalt Facility [Member] | Thompson To Webster System [Member] | Thompson To Webster System [Member] | Thompson To Webster System [Member] | Thompson To Webster System [Member] | ||||||
Asphalt Services [Member] | Asphalt Services [Member] | Asphalt Services [Member] | Crude Oil Pipeline Services [Member] | Crude Oil Pipeline Services [Member] | Crude Oil Pipeline Services [Member] | Crude Oil Pipeline Services [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset Impairment Charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5,700,000 | ' |
Total Revenue | ' | ' | ' | ' | ' | 164,000 | 328,000 | ' | 456,000 | 1,340,000 | ' | ' |
Operating | ' | ' | ' | ' | ' | 28,000 | 56,000 | ' | 242,000 | 540,000 | ' | ' |
Loss on sale of assets | ' | ' | 972,000 | 998,000 | ' | ' | ' | ' | 881,000 | 875,000 | ' | ' |
Income from discontinued operations | 0 | 1,231,000 | 0 | 1,947,000 | ' | 136,000 | 272,000 | ' | 1,095,000 | 1,675,000 | ' | ' |
Diluted net income from discontinued operations per common unit | $0 | $0.05 | $0 | $0.08 | ' | $0.01 | $0.01 | ' | $0.05 | $0.07 | ' | ' |
Accounts Receivable | 12,562,000 | ' | 12,562,000 | ' | 12,244,000 | ' | ' | 4,000 | ' | ' | ' | 400,000 |
Plant, property and equipment, net | 303,615,000 | ' | 303,615,000 | ' | 297,400,000 | ' | ' | ' | ' | ' | ' | 1,000,000 |
Assets of discontinued operations | ' | ' | ' | ' | ' | ' | ' | 4,000 | ' | ' | ' | 1,400,000 |
Accounts Payable | 6,601,000 | ' | 6,601,000 | ' | 6,537,000 | ' | ' | 13,000 | ' | ' | ' | 1,000 |
Deferred Revenue | ' | ' | ' | ' | ' | ' | ' | 28,000 | ' | ' | ' | 148,000 |
Other liabilities | ' | ' | ' | ' | ' | ' | ' | 84,000 | ' | ' | ' | 339,000 |
Liabilities of discontinued operations | ' | ' | ' | ' | ' | ' | ' | $125,000 | ' | ' | ' | $488,000 |
Basic and diluted net income from discontinued operations per common unit | $0 | $0.05 | $0 | $0.08 | ' | $0.01 | $0.01 | ' | $0.05 | $0.07 | ' | ' |
PROPERTY_PLANT_AND_EQUIPMENT_D
PROPERTY, PLANT AND EQUIPMENT (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property, plant and equipment, gross | $484,616,000 | ' | $484,616,000 | ' | $468,456,000 |
Accumulated Depreciation and Impairments, property plant and equipment | 181,001,000 | ' | 181,001,000 | ' | 171,056,000 |
Property, plant and equipment, net | 303,615,000 | ' | 303,615,000 | ' | 297,400,000 |
Depreciation | 6,400,000 | 5,900,000 | 12,800,000 | 11,700,000 | ' |
Land [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property, plant and equipment, gross | 17,362,000 | ' | 17,362,000 | ' | 16,374,000 |
Land improvements [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property, plant and equipment, gross | 6,343,000 | ' | 6,343,000 | ' | 6,306,000 |
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 | 157,118,000 | ' | 157,118,000 | ' | 144,261,000 |
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 | 237,572,000 | ' | 237,572,000 | ' | 234,208,000 |
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 | 15,098,000 | ' | 15,098,000 | ' | 16,735,000 |
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 | 26,888,000 | ' | 26,888,000 | ' | 26,371,000 |
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 | ' | 10,193,000 |
Construction-in-progress [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property, plant and equipment, gross | $14,042,000 | ' | $14,042,000 | ' | $14,008,000 |
DEBT_Credit_Agreements_Details
DEBT (Credit Agreements) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 28, 2013 | Jun. 28, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Aug. 01, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Aug. 01, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
Blueknight General Partners G. P., L.L.C. [Member] | Vitol or Charlesbank [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] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Letter of Credit [Member] | Interest Rate Swap [Member] | Interest Rate Swap Two [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 | ' | ' | 31,000,000 | 314,411,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of Long-term Debt | ' | ' | 17,000,000 | 263,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolver borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 283,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of credit outstanding, amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' |
Unused borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 116,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity including additional lenders | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000,000 | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 | ' | 4.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument Maximum Covenant Consolidated Total Leverage Base Ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument Covenant, Issued Qualified Senior Notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument Maximum Covenant Consolidated Senior Secured Leverage Ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.5 | ' | 3.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated interest coverage (as a ratio), minimum permitted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.5 | ' | 2.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated total leverage (as a ratio), actual | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.75 | ' | 3.75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated interest coverage (as a ratio), actual | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.74 | ' | 8.74 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 | ' | ' | ' | ' | ' | ' | ' | ' | 1,800,000 | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt issuance costs, net | 3,182,000 | ' | 3,182,000 | ' | 3,580,000 | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate During Period | 3.40% | 5.05% | 3.41% | 5.09% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt issuance costs | ' | ' | 0 | 3,589,000 | ' | ' | ' | 200,000 | ' | ' | 0 | 3,400,000 | 0 | 3,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization and write-off of debt issuance costs | 200,000 | 500,000 | 400,000 | 900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense for long-term debt | 2,500,000 | 3,200,000 | 4,800,000 | 6,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.38% | ' | 3.38% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense related to credit agreement | 4,031,000 | 4,559,000 | 6,686,000 | 7,291,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capitalized interest | 80,390.97 | 455,973.82 | 160,160.90 | 697,659.82 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative, Notional Amount | 200,000,000 | ' | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | 100,000,000 |
Derivative, Fixed Interest Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.45% | 1.97% |
Interest rate swaps liability | $2,002,000 | ' | $2,002,000 | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
NET_INCOME_PER_LIMITED_PARTNER2
NET INCOME PER LIMITED PARTNER UNIT (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Income from continuing operations | $3,619 | $4,934 | $7,512 | $10,241 |
Income from discontinued operations | 0 | 1,231 | 0 | 1,947 |
Net income | 3,619 | 6,165 | 7,512 | 12,188 |
General partner interest in net income | 96 | 129 | 189 | 316 |
Preferred interest in net income | 5,391 | 5,391 | 10,782 | 10,782 |
Income (loss) available to limited partners | ($1,868) | $645 | ($3,459) | $1,090 |
Basic and diluted weighted average number of units: | ' | ' | ' | ' |
Weighted average common units outstanding - basic | 22,925 | 22,681 | 22,910 | 22,678 |
Weighted average common units outstanding - diluted | 22,925 | 22,681 | 22,910 | 22,678 |
Basic and diluted net loss from continuing operations per common unit | ($0.08) | ($0.02) | ($0.15) | ($0.03) |
Basic and diluted net income from discontinued operations per common unit | $0 | $0.05 | $0 | $0.08 |
Restricted and phantom units | 727 | 737 | 606 | 651 |
Basic and diluted net income (loss) per common unit | ($0.08) | $0.03 | ($0.15) | $0.05 |
Diluted net loss from continuing operations per common unit | ($0.08) | ($0.02) | ($0.15) | ($0.03) |
Diluted net income from discontinued operations per common unit | $0 | $0.05 | $0 | $0.08 |
Net Income (Loss), Net of Tax, Per Outstanding Limited Partnership Unit, Diluted | ($0.08) | $0.03 | ($0.15) | $0.05 |
DISTRIBUTIONS_Narrative_Detail
DISTRIBUTIONS (Narrative) (Details) (USD $) | 3 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 |
Distribution Made to Member or Limited Partner, Cash Distributions Declared | $3.20 |
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) | $0.13 |
Distribution Made to Member or Limited Partner, Distributions Declared, Percentage Increase Over Previous Quarter Distribution | 1.90% |
Distribution Made to Member or Limited Partner, Cash Distributions Declared | 3 |
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 | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Related party revenue | $10,600 | $11,504 | $22,806 | $23,983 | ' |
Receivables from related parties | 3,131 | ' | 3,131 | ' | 3,149 |
Vitol [Member] | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Related party revenue | 10,300 | 11,400 | 22,400 | 23,900 | ' |
Receivables from related parties | 3,100 | ' | 3,100 | ' | 3,000 |
Advantage Pipeline, L.L.C. [Member] | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Related party revenue | 300 | 100 | 400 | 100 | ' |
Receivables from related parties | $100 | ' | $100 | ' | $200 |
LONGTERM_INCENTIVE_PLAN_Detail
LONG-TERM INCENTIVE PLAN (Details) (USD $) | 3 Months Ended | 6 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | 1 Months Ended | ||||||||||||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Apr. 28, 2014 | Sep. 30, 2012 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2012 | Mar. 31, 2013 | Mar. 31, 2014 | |
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 2015 Vesting [Member] | January 2016 Vesting [Member] | January 2017 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] | ||||
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] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of units authorized | ' | ' | ' | ' | ' | ' | 4,100,000 | ' | 4,100,000 | ' | 2,600,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' |
Award vesting rights percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33.00% | 33.00% | 33.00% | ' | ' | ' |
Value of award grants (in dollars) | ' | ' | ' | $2,500,000 | $2,200,000 | $2,400,000 | ' | ' | ' | ' | ' | $2,800,000 | ' | $100,000 | $100,000 | $42,750 | ' | ' | ' |
Unrecognized estimated compensation cost (in dollars) | ' | ' | ' | ' | ' | ' | 2,900,000 | ' | 2,900,000 | ' | ' | ' | 1,800,000 | ' | ' | ' | ' | ' | ' |
Equity-based incentive compensation expense (in dollars) | ' | $529,000 | $1,018,000 | ' | ' | ' | $600,000 | $500,000 | $1,000,000 | $1,046,348.54 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Units [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Units, Nonvested, Beginning balance | ' | ' | ' | ' | ' | ' | ' | ' | 1,058,162 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Units, Granted | ' | ' | ' | ' | ' | ' | ' | ' | 276,773 | ' | ' | 500,000 | ' | 7,500 | 7,500 | 7,500 | 353,300 | 251,106 | 276,773 |
Number of Units, Vested | ' | ' | ' | ' | ' | ' | ' | ' | 198,936 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Units, Forfeited | ' | ' | ' | ' | ' | ' | ' | ' | 9,615 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Units, Nonvested, Ending balance | ' | ' | ' | ' | ' | ' | 1,126,384 | ' | 1,126,384 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Grant Date Fair Value [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Grant Date Fair Value, Nonvested, Beginning balance (in dollars per unit) | ' | ' | ' | ' | ' | ' | ' | ' | $7.03 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Grant Date Fair Value, Granted (in dollars per unit) | ' | ' | ' | $9.06 | $8.75 | $6.76 | ' | ' | $9.06 | ' | ' | $5.62 | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Grant Date Fair Value, Vested (in dollars per unit) | ' | ' | ' | ' | ' | ' | ' | ' | $8.23 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Grant Date Fair Value, Forfeited (in dollars per unit) | ' | ' | ' | ' | ' | ' | ' | ' | $8.24 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Grant Date Fair Value, Nonvested, Ending balance (in dollars per unit) | ' | ' | ' | ' | ' | ' | $7.31 | ' | $7.31 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
EMPLOYEE_BENEFIT_PLAN_Details
EMPLOYEE BENEFIT PLAN (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
401 (k) Plan [Member] | ' | ' | ' | ' |
Defined Contribution Plans Disclosure [Line Items] | ' | ' | ' | ' |
Employer discretionary contribution amount | $0.40 | $0.40 | $0.70 | $0.70 |
Profit Sharing [Member] | ' | ' | ' | ' |
Defined Contribution Plans Disclosure [Line Items] | ' | ' | ' | ' |
Employer discretionary contribution amount | $0.20 | $0.30 | $0.30 | $0.50 |
FAIR_VALUE_MEASUREMENTS_Fair_V2
FAIR VALUE MEASUREMENTS Fair Value Measurements (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Interest rate swaps liability | $2,002 | $0 |
Total | 2,002 | ' |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Interest rate swaps liability | 0 | ' |
Total | 0 | ' |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Interest rate swaps liability | 0 | ' |
Total | 0 | ' |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Interest rate swaps liability | 2,002 | ' |
Total | $2,002 | $0 |
FAIR_VALUE_MEASUREMENTS_Fair_V3
FAIR VALUE MEASUREMENTS Fair Value Measurement Reconciliation (Details) (Fair Value, Inputs, Level 3 [Member], USD $) | 3 Months Ended | 6 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | ||
Fair Value, Inputs, Level 3 [Member] | ' | ' | ' | ' | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' | ||
Beginning Balance | ($2,002) | ($2,002) | ($355) | $0 | ||
Included in Earnings | -1,647 | [1] | -2,002 | [1] | ' | ' |
Included in other comprehensive income | 0 | ' | ' | ' | ||
Purchases, issuances, and settlements | 0 | ' | ' | ' | ||
Transfers in and/or out of Level 3 | 0 | ' | ' | ' | ||
Ending Balance | ($1,647) | ($2,002) | ' | ' | ||
[1] | Amounts reported as included in earnings are reported as interest expense on the statements of operations. |
OPERATING_SEGMENTS_Details
OPERATING SEGMENTS (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | ||||
Operating-segments | |||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Number of operating segments (in operating segments) | ' | ' | 4 | ' | ' | ||||
Service revenue | ' | ' | ' | ' | ' | ||||
Third party revenue | $35,197 | $34,174 | $69,433 | $66,231 | ' | ||||
Related party revenue | 10,600 | 11,504 | 22,806 | 23,983 | ' | ||||
Total revenue for reportable segments | 45,797 | 45,678 | 92,239 | 90,214 | ' | ||||
Operating margin (excluding depreciation and amortization) from continuing operations | 17,776 | [1] | 19,677 | [1] | 35,034 | [1] | 38,463 | [1] | ' |
Total assets (end of period) | 360,354 | ' | 360,354 | ' | 354,748 | ||||
Reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes | ' | ' | ' | ' | ' | ||||
Operating margin (excluding depreciation and amortization) from continuing operations | 17,776 | [1] | 19,677 | [1] | 35,034 | [1] | 38,463 | [1] | ' |
Depreciation and amortization on continuing operations | -6,454 | -5,822 | -12,771 | -11,558 | ' | ||||
General and administrative expenses | -4,371 | -4,490 | -8,857 | -9,157 | ' | ||||
Gain on sale of assets | 575 | 339 | 972 | 123 | ' | ||||
Interest expense | -4,031 | -4,559 | -6,686 | -7,291 | ' | ||||
Equity (earnings) loss in unconsolidated affiliate | 258 | -118 | 54 | -173 | ' | ||||
Income from continuing operations before income taxes | 3,753 | 5,027 | 7,746 | 10,407 | ' | ||||
Crude Oil Terminalling and Storage Services [Member] | ' | ' | ' | ' | ' | ||||
Service revenue | ' | ' | ' | ' | ' | ||||
Third party revenue | 2,305 | 3,066 | 5,145 | 5,933 | ' | ||||
Related party revenue | 3,131 | 4,580 | 7,645 | 10,018 | ' | ||||
Total revenue for reportable segments | 5,436 | 7,646 | 12,790 | 15,951 | ' | ||||
Operating expenses (excluding depreciation and amortization) | 1,005 | 988 | 1,974 | 1,804 | ' | ||||
Operating margin (excluding depreciation and amortization) from continuing operations | 4,431 | 6,658 | 10,816 | 14,147 | ' | ||||
Total assets (end of period) | 67,428 | 66,884 | 67,428 | 66,884 | ' | ||||
Reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes | ' | ' | ' | ' | ' | ||||
Operating margin (excluding depreciation and amortization) from continuing operations | 4,431 | 6,658 | 10,816 | 14,147 | ' | ||||
Crude Oil Pipeline Services [Member] | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Number of pipelines systems owned and operated (in pipeline systems) | ' | ' | 3 | ' | ' | ||||
Service revenue | ' | ' | ' | ' | ' | ||||
Third party revenue | 4,434 | 2,904 | 7,533 | 6,182 | ' | ||||
Related party revenue | 1,949 | 1,139 | 3,836 | 2,372 | ' | ||||
Total revenue for reportable segments | 6,383 | 4,043 | 11,369 | 8,554 | ' | ||||
Operating expenses (excluding depreciation and amortization) | 4,735 | 3,381 | 9,117 | 7,089 | ' | ||||
Operating margin (excluding depreciation and amortization) from continuing operations | 1,648 | 662 | 2,252 | 1,465 | ' | ||||
Total assets (end of period) | 169,480 | 149,321 | 169,480 | 149,321 | ' | ||||
Reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes | ' | ' | ' | ' | ' | ||||
Operating margin (excluding depreciation and amortization) from continuing operations | 1,648 | 662 | 2,252 | 1,465 | ' | ||||
Crude Oil Trucking and Producer Field Services [Member] | ' | ' | ' | ' | ' | ||||
Service revenue | ' | ' | ' | ' | ' | ||||
Third party revenue | 12,166 | 12,356 | 26,016 | 24,373 | ' | ||||
Related party revenue | 5,076 | 5,256 | 10,624 | 10,565 | ' | ||||
Total revenue for reportable segments | 17,242 | 17,612 | 36,640 | 34,938 | ' | ||||
Operating expenses (excluding depreciation and amortization) | 15,646 | 15,024 | 32,627 | 30,243 | ' | ||||
Operating margin (excluding depreciation and amortization) from continuing operations | 1,596 | 2,588 | 4,013 | 4,695 | ' | ||||
Total assets (end of period) | 25,258 | 21,204 | 25,258 | 21,204 | ' | ||||
Reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes | ' | ' | ' | ' | ' | ||||
Operating margin (excluding depreciation and amortization) from continuing operations | 1,596 | 2,588 | 4,013 | 4,695 | ' | ||||
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) | 42 | ' | 42 | ' | ' | ||||
Number of states that Asphalt product and residual fuel terminalling, storage and blending services at its terminalling and storage facilities are provided (in states) | 21 | ' | 21 | ' | ' | ||||
Service revenue | ' | ' | ' | ' | ' | ||||
Third party revenue | 16,292 | 15,848 | 30,739 | 29,743 | ' | ||||
Related party revenue | 444 | 529 | 701 | 1,028 | ' | ||||
Total revenue for reportable segments | 16,736 | 16,377 | 31,440 | 30,771 | ' | ||||
Operating expenses (excluding depreciation and amortization) | 6,635 | 6,608 | 13,487 | 12,615 | ' | ||||
Operating margin (excluding depreciation and amortization) from continuing operations | 10,101 | 9,769 | 17,953 | 18,156 | ' | ||||
Total assets (end of period) | 98,188 | 108,495 | 98,188 | 108,495 | ' | ||||
Reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes | ' | ' | ' | ' | ' | ||||
Operating margin (excluding depreciation and amortization) from continuing operations | $10,101 | $9,769 | $17,953 | $18,156 | ' | ||||
[1] | The following table reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes (in thousands): Three Months ended June 30, Six Months ended June 30, 2013 2014 2013 2014Operating margin (excluding depreciation and amortization) from continuing operations$19,677 $17,776 $38,463 $35,034Depreciation and amortization on continuing operations(5,822) $(6,454) (11,558) (12,771)General and administrative expenses(4,490) (4,371) (9,157) (8,857)Gain on sale of assets$339 $575 123 972Interest expense(4,559) (4,031) (7,291) (6,686)Equity gain (loss) in unconsolidated entity$(118) $258 (173) 54Income from continuing operations before income taxes$5,027 $3,753 $10,407 $7,746 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) (Pending Litigation [Member], USD $) | Jun. 10, 2013 | Feb. 06, 2012 | Nov. 30, 2013 | Dec. 31, 2013 | Feb. 06, 2012 |
Physical Management and Control of Crude Oil [Member] | Physical Management and Control of Crude Oil [Member] | Insurance Claims [Member] | Insurance Claims [Member] | Minimum [Member] | |
bbl | bbl | bbl | Physical Management and Control of Crude Oil [Member] | ||
Pipeline_Systems | |||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' |
Judgement seeking immediate return of crude cil Linefill belonging to company (in BOE) | ' | 140,000 | ' | ' | ' |
Gain contingency, unrecorded amount | ' | ' | ' | ' | $75,000 |
Gain Contingency, Partnership's Shortage Found by Special Master | 148,000 | ' | ' | ' | ' |
Gain Contingency, Defendent's Overage Found By Special Master | 130,000 | ' | ' | ' | ' |
Number of pipelines systems owned and operated (in pipeline systems) | ' | ' | 1 | ' | ' |
Number of Barrels | ' | ' | 500 | ' | ' |
Loss Contingency, Estimate of Possible Loss | ' | ' | ' | 2,100,000 | ' |
Insurance Deductible Paid | ' | ' | ' | $250,000 | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
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 | $964 |
Deferred tax asset | 964 |
Less: valuation allowance | -964 |
Net deferred tax asset | $0 |