Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | ||
Jun. 30, 2019 | Aug. 01, 2019 | Dec. 31, 2018 | |
Entity Information [Line Items] | |||
Series A Preferred unitholders, units outstanding | 35,125,202 | 35,125,202 | |
Entity Registrant Name | Blueknight Energy Partners, L.P. | ||
Entity Central Index Key | 0001392091 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | Q2 | ||
Document Type | 10-Q | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2019 | ||
Entity Common Stock, Shares Outstanding | 40,813,488 | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Subsequent Event [Member] | |||
Entity Information [Line Items] | |||
Series A Preferred unitholders, units outstanding | 35,125,202 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 1,542 | $ 1,455 |
Accounts receivable, net | 26,661 | 35,683 |
Receivables from related parties, net | 1,121 | 1,043 |
Other current assets | 7,477 | 9,345 |
Total current assets | 36,801 | 47,526 |
Assets, Noncurrent [Abstract] | ||
Property, plant and equipment, net of accumulated depreciation of $263,554 and $273,420 at December 31, 2018, and June 30, 2019, respectively | 241,130 | 248,261 |
Goodwill | 6,728 | 6,728 |
Debt issuance costs, net | 2,846 | 3,349 |
Operating Lease, Right-of-Use Asset | 12,009 | 0 |
Intangible assets, net | 15,461 | 16,834 |
Other noncurrent assets | 1,287 | 606 |
Total assets | 316,262 | 323,304 |
Current liabilities: | ||
Accounts payable | 3,793 | 3,707 |
Accounts payable to related parties | 3,125 | 2,263 |
Accrued crude oil purchases | 5,518 | 13,949 |
Accrued crude oil purchases to related parties | 10,180 | 10,219 |
Accrued interest payable | 394 | 465 |
Accrued property taxes payable | 3,098 | 3,089 |
Unearned revenue | 2,244 | 3,206 |
Unearned revenue with related parties | 7,739 | 4,835 |
Accrued payroll | 3,083 | 3,667 |
Current operating lease liability | 2,682 | 0 |
Other current liabilities | 3,331 | 3,465 |
Total current liabilities | 45,187 | 48,865 |
Long-term unearned revenue with related parties | 1,607 | 1,714 |
Other long-term liabilities | 3,662 | 4,010 |
Noncurrent operating lease liability | 9,402 | 0 |
Contingent liability with related party (Note 10) | 11,980 | 10,019 |
Long-term debt | 261,592 | 265,592 |
Commitments and contingencies (Note 16) | ||
Partners’ capital: | ||
Common unitholders (40,424,372 and 40,714,857 units issued and outstanding at December 31, 2018, and June 30, 2019, respectively) | 360,861 | 370,972 |
Preferred Units (35,125,202 units issued and outstanding at both dates) | 253,923 | 253,923 |
General partner interest (1.6% interest with 1,225,409 general partner units outstanding at both dates) | (631,952) | (631,791) |
Total partners’ capital | (17,168) | (6,896) |
Total liabilities and partners’ capital | $ 316,262 | $ 323,304 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets, Noncurrent [Abstract] | ||
Accumulated depreciation | $ 273,420 | $ 263,554 |
Partners’ capital: | ||
Common unitholders, units issued | 40,714,857 | 40,424,372 |
Common unitholders, units outstanding | 40,714,857 | 40,424,372 |
Series A Preferred unitholders, units issued | 35,125,202 | 35,125,202 |
Series A Preferred unitholders, units outstanding | 35,125,202 | 35,125,202 |
General partner interest, units outstanding | 1,225,409 | 1,225,409 |
General partner percentage interest | 1.60% | 1.60% |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues [Abstract] | ||||
Revenue from contracts with customers | $ 79,445 | $ 65,781 | $ 158,474 | $ 92,934 |
Lease revenue: | ||||
Lease revenue | 9,819 | 10,237 | 19,582 | 20,041 |
Total revenue | 94,076 | 83,493 | 187,808 | 128,153 |
Costs and expenses: | ||||
Operating expense | 25,915 | 28,988 | 53,158 | 60,123 |
Cost of product sales from related party | 20,510 | 20,041 | 45,097 | 22,678 |
General and administrative expense | 2,962 | 4,486 | 6,655 | 8,707 |
Asset impairment expense | 1,114 | 0 | 2,233 | 616 |
Total costs and expenses | 86,922 | 77,262 | 174,338 | 115,871 |
Gain on sale of assets | 81 | 599 | 1,805 | 363 |
Operating income | 7,235 | 6,830 | 15,275 | 12,645 |
Other income (expenses): | ||||
Other Income | 268 | 0 | 268 | 0 |
Gain on sale of unconsolidated affiliate | 0 | 0 | 0 | 2,225 |
Interest expense | (4,134) | (5,024) | (8,405) | (8,593) |
Income before income taxes | 3,369 | 1,806 | 7,138 | 6,277 |
Provision for income taxes | 13 | 21 | 25 | 50 |
Net income | 3,356 | 1,785 | 7,113 | 6,227 |
Allocation of net income for calculation of earnings per unit: | ||||
General partner interest in net income | 53 | 28 | 158 | 259 |
Preferred interest in net income | 6,279 | 6,279 | 12,558 | 12,557 |
Net loss available to limited partners | $ (2,976) | $ (4,522) | $ (5,603) | $ (6,589) |
Basic and diluted net loss per common unit | $ (0.07) | $ (0.11) | $ (0.13) | $ (0.16) |
Weighted average common units outstanding - basic and diluted | 40,715 | 40,324 | 40,696 | 40,306 |
Service [Member] | ||||
Revenues [Abstract] | ||||
Revenue from contracts with customers | $ 15,727 | $ 14,103 | $ 31,613 | $ 31,421 |
Product [Member] | ||||
Revenues [Abstract] | ||||
Revenue from contracts with customers | 59,636 | 45,615 | 118,560 | 49,129 |
Affiliated Entity [Member] | ||||
Lease revenue: | ||||
Lease revenue | 4,812 | 7,475 | 9,752 | 15,178 |
Costs and expenses: | ||||
Cost of product sales from related party | 36,421 | 23,747 | 67,195 | 23,747 |
Affiliated Entity [Member] | Service [Member] | ||||
Revenues [Abstract] | ||||
Revenue from contracts with customers | $ 4,082 | $ 6,063 | $ 8,301 | $ 12,384 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL - USD ($) $ in Thousands | Total | Limited Partner [Member] | General Partner [Member] | Preferred Partner [Member] |
Balance at Dec. 31, 2017 | $ 4,684 | $ 454,358 | $ (703,597) | $ 253,923 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 6,227 | (6,745) | 415 | 12,557 |
Equity-based incentive compensation | 687 | 669 | 18 | |
Distributions | (25,238) | (11,958) | (723) | (12,557) |
Capital contributions | 183 | 183 | ||
Proceeds from sale of common units pursuant to the Employee Unit Purchase Plan | 92 | 92 | ||
Balance at Jun. 30, 2018 | (13,365) | 436,416 | (703,704) | 253,923 |
Balance at Mar. 31, 2018 | (3,145) | 446,471 | (703,539) | 253,923 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 1,785 | (4,681) | 187 | 6,279 |
Equity-based incentive compensation | 646 | 636 | 10 | |
Distributions | (12,651) | (6,010) | (362) | (6,279) |
Balance at Jun. 30, 2018 | (13,365) | 436,416 | (703,704) | 253,923 |
Balance at Dec. 31, 2018 | (6,896) | 370,972 | (631,791) | 253,923 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 7,113 | (5,557) | 112 | 12,558 |
Equity-based incentive compensation | 363 | 353 | 10 | |
Distributions | (17,821) | (4,980) | (283) | (12,558) |
Proceeds from sale of common units pursuant to the Employee Unit Purchase Plan | 73 | 73 | ||
Balance at Jun. 30, 2019 | (17,168) | 360,861 | (631,952) | 253,923 |
Balance at Mar. 31, 2019 | (12,739) | 365,220 | (631,882) | 253,923 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 3,356 | (2,976) | 53 | 6,279 |
Equity-based incentive compensation | 294 | 289 | 5 | |
Distributions | (8,079) | (1,672) | (128) | (6,279) |
Balance at Jun. 30, 2019 | $ (17,168) | $ 360,861 | $ (631,952) | $ 253,923 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (Parenthetical) - shares | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Partners' Capital [Abstract] | ||
Units Issued, Unit Based Compensation | 63,340 | 21,246 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 7,113,000 | $ 6,227,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for uncollectible receivables from third parties | 0 | 1,000 |
Depreciation and amortization | 12,971,000 | 14,779,000 |
Amortization of debt issuance costs | 503,000 | 512,000 |
Amortization and Write Off of Debt Issuance Costs | 503,000 | 949,000 |
Unrealized (gain) loss related to interest rate swaps | 44,000 | (314,000) |
Intangible asset impairment charge | 0 | 189,000 |
Fixed asset impairment charge | 2,233,000 | 427,000 |
Gain on sale of assets | (1,805,000) | (363,000) |
Gain on sale of unconsolidated affiliate | 0 | (2,225,000) |
Equity-based incentive compensation | 363,000 | 687,000 |
Changes in assets and liabilities: | ||
Decrease (increase) in accounts receivable | 7,116,000 | (23,680,000) |
Decrease (increase) in receivables from related parties | (78,000) | 1,851,000 |
Decrease (increase) in other current assets | 3,425,000 | (1,426,000) |
Decrease in other non-current assets | 1,551,000 | 90,000 |
Decrease in accounts payable | (440,000) | (502,000) |
Increase (decrease) in payables to related parties | (20,000) | 748,000 |
Increase (decrease) in accrued crude oil purchases | (8,431,000) | 9,756,000 |
Increase (decrease) in accrued crude oil purchases to related parties | (39,000) | 13,363,000 |
Decrease in accrued interest payable | (71,000) | (50,000) |
Increase in accrued property taxes | 9,000 | 933,000 |
Decrease in unearned revenue | (1,334,000) | (346,000) |
Increase in unearned revenue from related parties | 2,797,000 | 3,679,000 |
Decrease in accrued payroll | (584,000) | (2,448,000) |
Decrease in other accrued liabilities | (2,385,000) | (1,250,000) |
Net cash provided by operating activities | 22,938,000 | 21,075,000 |
Cash flows from investing activities: | ||
Acquisitions | 0 | (21,959,000) |
Capital expenditures | (6,240,000) | (22,125,000) |
Proceeds from sale of assets | 6,351,000 | 3,893,000 |
Proceeds from sale of unconsolidated affiliate | 0 | 2,225,000 |
Net cash provided by (used in) investing activities | 111,000 | (37,966,000) |
Cash flows from financing activities: | ||
Payments on other financing activities | (1,214,000) | (1,113,000) |
Payments of Debt Issuance Costs | 0 | 309,000 |
Borrowings under credit agreement | 158,000,000 | 113,000,000 |
Payments under credit agreement | 162,000,000 | 71,000,000 |
Proceeds from equity issuance | 73,000 | 92,000 |
Capital contributions | 0 | 183,000 |
Distributions | (17,821,000) | (25,238,000) |
Net cash provided by (used in) financing activities | (22,962,000) | 15,615,000 |
Net increase (decrease) in cash and cash equivalents | 87,000 | (1,276,000) |
Cash and cash equivalents at beginning of period | 1,455,000 | 2,469,000 |
Cash and cash equivalents at end of period | 1,542,000 | 1,193,000 |
Supplemental disclosure of non-cash financing and investing cash flow information: | ||
Non-cash changes in property, plant and equipment | 1,515,000 | 294,000 |
Increase in accrued liabilities related to insurance premium financing agreement | $ 1,912,000 | $ 1,578,000 |
ORGANIZATION AND NATURE OF BUSI
ORGANIZATION AND NATURE OF BUSINESS | 6 Months Ended |
Jun. 30, 2019 | |
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 27 states. The Partnership provides integrated terminalling, gathering, transportation and marketing 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) asphalt terminalling services, (ii) crude oil terminalling services, (iii) crude oil pipeline services and (iv) crude oil trucking 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 PRES
BASIS OF CONSOLIDATION AND PRESENTATION | 6 Months Ended |
Jun. 30, 2019 | |
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 generally accepted in the United States of America (“GAAP”). The condensed consolidated balance sheet as of June 30, 2019 , the condensed consolidated statements of operations for the three and six months ended June 30, 2018 and 2019 , the condensed consolidated statements of changes in partners’ capital (deficit) for the three and six months ended June 30, 2018 and 2019 , and the condensed consolidated statements of cash flows for the six months ended June 30, 2018 and 2019 , are unaudited. In the opinion of management, the unaudited condensed 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 2018 year-end condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. These unaudited condensed 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, 2018 , filed with the Securities and Exchange Commission (the “SEC”) on March 12, 2019 (the “ 2018 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 3 of the Notes to Consolidated Financial Statements in its 2018 Form 10-K except for new accounting standards adopted in 2019 as discussed Note 3 and Note 14. Certain reclassifications have been made in the consolidated balance sheet as of December 31, 2018 , and the consolidated statement of cash flows for the six months ended June 30, 2018, to conform to the 2019 financial statement presentation. These reclassifications relate to items included in “Other current assets” and “Other noncurrent assets.” Reclassifications on the consolidated statement of cash flows were limited to the “Cash flows from operating activities” section. The reclassifications have no impact on net income. |
REVENUE REVENUE
REVENUE REVENUE | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers [Text Block] | REVENUE On January 1, 2019, the Partnership adopted the new accounting standard ASC 842 - Leases and all related amendments (“new lease standard”) using the modified retrospective method. Results for reporting periods beginning on January 1, 2019, are presented under the new lease standard, while prior period amounts are not adjusted and continue to be reported in accordance with the Partnership’s historic accounting under ASC 840 - Leases . The adoption of ASC 842 did not have a material effect on the Partnership’s revenue recognition. The primary impact is a change to the recognition of variable consideration that has both a service and lease component. Previously, the variable consideration related to the service component was estimated at the beginning of the contract year and recognized on a straight-line basis over the year. Under ASC 842, the variable consideration related to the service component is treated as a change in estimate in the period when the facts and circumstances on which the variable payment is based occur. There are two types of contracts in the asphalt terminalling segment: (i) operating lease contracts, under which customers operate the facilities, and (ii) storage, throughput and handling contracts, under which the Partnership operates the facilities. The operating lease contracts are accounted for in accordance with ASC 842 - Leases. The storage, throughput and handling contracts contain both lease revenue and non-lease service revenue. In accordance with ASC 842 and 606, fixed consideration is allocated to the lease and service components based on their relative stand-alone selling price. The stand-alone selling price of the lease component is calculated using the average internal rate of return under the operating lease agreements. The stand-alone selling price of the service component is calculated by applying an appropriate margin to the expected costs to operate the facility. The service component contains a single performance obligation that consists of a stand-ready obligation to perform activities as directed by the customer, and revenue is recognized on a straight-line basis over time as the customer receives and consumes benefits. The lease component is recognized on a straight-line basis over the term of the initial lease. Fixed consideration, consisting of the monthly storage and handling fees, is billed a month prior to the performance of services and is due by the first day of the month of service. Payments received in advance of the month of service are recorded as unearned revenue until the service is performed, and the service component is treated as a contract liability. Asphalt storage, throughput and handling contracts also contain variable consideration in the form of reimbursements of utility, fuel and power expenses and throughput fees. Utility, fuel and power reimbursements are allocated entirely to the service component of the contracts. Utility, fuel and power reimbursements relate directly to the distinct monthly service that makes up the overall performance obligation and revenue is recognized in the period in which the service takes place. Variable consideration related to reimbursements of utility, fuel and power expenses is billed in the month subsequent to the period of service, and payment is due within 30 days of billing. Throughput fees are allocated to both the lease and service component of the contracts using the allocation percentages from contract inception. In accordance with ASC 842, the lease component of variable throughput fees is recognized in the period when the changes in facts and circumstances on which the variable payment is based occur. Additionally, under ASC 842, when variable consideration contains both a lease and non-lease service component, the service component cannot be recognized until the period in which the changes in facts and circumstances on which the variable payment is based occur. At that time, it can be recognized in accordance with ASC 606. The service component of variable throughput fees is treated as a change in estimate in the period in when the changes in facts and circumstances on which the variable payment is based occur and is then recognized on a straight-line basis over time as the customer receives and consumes benefits. Payment on variable throughput consideration is due within 30 days of billing. Certain asphalt storage, throughput and handling contracts contain provisions for reimbursement of specified major maintenance costs above a specified threshold over the life of the contract. Reimbursements of specified major maintenance costs are allocated to both the lease and service component of the contracts using the allocation percentages from contract inception. Reimbursements of specified major maintenance costs are reviewed and paid quarterly, which may result in overpayments that must be paid back to the customer in future years. As such, the service component of this consideration is constrained and recorded in unearned revenue (contract liability) until facts and circumstances indicate it is probable that the minimum threshold will be met. In the event the minimum threshold is not met, the Partnership will return the reimbursement to the customer. The following table includes revenue associated with contractual commitments in place related to future performance obligations as of the end of the reporting period, which are expected to be recognized in revenue in the specified periods (in thousands): Revenue from Contracts with Customers (1) Revenue from Leases Remainder of 2019 $ 15,475 $ 27,983 2020 30,391 53,259 2021 27,240 49,230 2022 19,937 38,545 2023 14,533 29,609 Thereafter 9,142 22,342 Total revenue related to future performance obligations $ 116,718 $ 220,968 ____________________ (1) Excluded from the table is revenue that is either constrained or related to performance obligations that are wholly unsatisfied as of June 30, 2019 . Crude oil terminalling services contracts can be either short- or long-term written contracts. The contracts contain a single performance obligation that consists of a series of distinct services provided over time. Customers are billed a month prior to the performance of terminalling services and payment is due by the first day of the month of service. Payments received in advance of the month of service are recorded as unearned revenue (contract liability) until the service is performed. These contracts also contain provisions under which customers are invoiced for product throughput in the month following the month in which the service is provided. Payment on product throughput is due within 30 days . The Partnership has elected to use the right-to-invoice expedient on crude oil terminalling services contracts as the right to consideration corresponds directly with the value to the customer of performance completed to date. There are primarily two types of contracts in the crude oil pipeline segment: (i) monthly transportation contracts and (ii) product sales contracts. Under crude oil pipeline services monthly transportation contracts, customers submit nominations for transportation monthly and a contract is created upon the Partnership’s acceptance of the nomination under its published tariffs. Crude oil pipeline services contracts have a single performance obligation to perform the transportation service. The transportation service is provided to the customer in the same month in which the customer makes the related nomination. Revenue is recorded in the month of service and invoiced in the following month. Payment is due within 30 days . The Partnership has elected to use the right-to-invoice expedient on crude oil pipeline services contracts as the right to consideration corresponds directly with the value to the customer of performance completed to date. The Partnership also purchases crude oil and resells to third parties under written product sales contracts. Product sales contracts have a single performance obligation, and revenue is recognized at the point in time that control is transferred to the customer. Control is considered transferred to the customer on the day of the sale. Customers are invoiced in the following month. Payment is due within 30 days . The Partnership has elected to use the right-to-invoice expedient on product sales contracts as the right to consideration corresponds directly with the value to the customer of performance completed to date. Services in the crude oil trucking segment are provided under master service agreements with customers that include rate sheets. Contracts are initiated when a customer requests service and both parties are committed upon the Partnership’s acceptance of the customer’s request. Crude oil trucking contracts have a single performance obligation to perform the service, which is completed in a day. Revenue is recorded in the month of service and invoiced in the following month. Payment is due within 30 days . The Partnership has elected to use the right-to-invoice expedient on crude oil trucking revenues as the right to consideration corresponds directly with the value to the customer of performance completed to date. Disaggregation of Revenue Disaggregation of revenue from contracts with customers for each operating segment by revenue type is presented as follows (in thousands): Asphalt Terminalling Services Crude Oil Terminalling Services Crude Oil Pipeline Services Crude Oil Trucking Services Total Three Months ended June 30, 2018 Third-party revenue: Fixed storage, throughput and other revenue $ 4,622 $ 2,767 $ — $ — $ 7,389 Variable throughput revenue 242 143 — — 385 Variable reimbursement revenue 1,775 — — — 1,775 Crude oil transportation revenue — — 1,045 3,509 4,554 Crude oil product sales revenue — — 45,612 3 45,615 Related-party revenue: Fixed storage, throughput and other revenue 4,632 — 48 — 4,680 Variable reimbursement revenue 1,349 — 34 — 1,383 Total revenue from contracts with customers $ 12,620 $ 2,910 $ 46,739 $ 3,512 $ 65,781 Asphalt Terminalling Services Crude Oil Terminalling Services Crude Oil Pipeline Services Crude Oil Trucking Services Total Six Months ended June 30, 2018 Third-party revenue: Fixed storage, throughput and other revenue $8,171 $ 6,849 $ — $ — $ 15,020 Variable throughput revenue 359 647 — — 1,006 Variable reimbursement revenue 3,241 — — — 3,241 Crude oil transportation revenue — — 3,105 9,049 12,154 Crude oil product sales revenue — — 49,120 9 49,129 Related-party revenue: Fixed storage, throughput and other revenue 9,263 — 48 — 9,311 Variable reimbursement revenue 3,039 — 34 — 3,073 Total revenue from contracts with customers $ 24,073 $ 7,496 $ 52,307 $ 9,058 $ 92,934 Three Months ended June 30, 2019 Third-party revenue: Fixed storage, throughput and other revenue 5,053 3,377 — — 8,430 Variable throughput revenue 33 643 — — 676 Variable reimbursement revenue 1,764 — — — 1,764 Crude oil transportation revenue — — 1,972 2,885 4,857 Crude oil product sales revenue — — 59,636 — 59,636 Related-party revenue: Fixed storage, throughput and other revenue 2,858 — 83 — 2,941 Variable reimbursement revenue 1,123 — 18 — 1,141 Total revenue from contracts with customers 10,831 4,020 61,709 2,885 79,445 Six Months ended June 30, 2019 Third-party revenue: Fixed storage, throughput and other revenue 10,035 6,447 — — 16,482 Variable throughput revenue 36 1,147 — — 1,183 Variable reimbursement revenue 3,760 — — — 3,760 Crude oil transportation revenue — — 4,470 5,718 10,188 Crude oil product sales revenue — — 118,560 — 118,560 Related-party revenue: Fixed storage, throughput and other revenue 5,705 — 167 — 5,872 Variable reimbursement revenue 2,393 — 36 — 2,429 Total revenue from contracts with customers 21,929 7,594 123,233 5,718 158,474 Contract Balances The timing of revenue recognition, billings and cash collections result in billed accounts receivable and unearned revenue (contract liabilities) on the unaudited condensed consolidated balance sheets as noted in the contract discussions above. Accounts receivable are reflected in the line items “Accounts receivable” and “Receivables from related parties” on the unaudited condensed consolidated balance sheets. Unearned revenue is included in the line items “Unearned revenue,” “Unearned revenue with related parties,” “Long-term unearned revenue with related parties” and “Other long-term liabilities” on the unaudited condensed consolidated balance sheets. Billed accounts receivable from contracts with customers were $34.6 million and $23.8 million at December 31, 2018 , and June 30, 2019 , respectively. The Partnership records unearned revenues when cash payments are received in advance of performance. Unearned revenue related to contracts with customers was $5.9 million and $6.4 million at December 31, 2018 , and June 30, 2019 , respectively. The change in the unearned revenue balance for the six months ended June 30, 2019 , is driven by $3.7 million in cash payments received in advance of satisfying performance obligations, partially offset by $3.2 million of revenues recognized that were included in the unearned revenue balance at the beginning of the period. Practical Expedients and Exemptions The Partnership does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which revenue is recognized at the amount to which the Partnership has the right to invoice for services performed. The Partnership is using the right-to-invoice practical expedient on all contracts with customers in its crude oil terminalling services, crude oil pipeline services and crude oil trucking services segments. |
RESTRUCTURING CHARGES RESTRUCTU
RESTRUCTURING CHARGES RESTRUCTURING CHARGES | 6 Months Ended |
Jun. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | RESTRUCTURING CHARGES During the fourth quarter of 2015, the Partnership recognized certain restructuring charges in its crude oil trucking services segment pursuant to an approved plan to exit the trucking market in West Texas. The restructuring charges included an accrual related to leased vehicles that were idled as part of the restructuring plan. This accrual was being amortized over the remaining lease term of the vehicles. In June 2018, the Partnership purchased the vehicles off lease and resold them to a third party, paying off the remaining liability. Changes in the accrued amounts pertaining to the restructuring charges are summarized as follows (in thousands): Three Months ended June 30, Six Months ended June 30, 2018 2018 Beginning balance $ 237 $ 286 Cash payments 237 286 Ending balance $ — $ — |
EQUITY METHOD INVESTMENT EQUITY
EQUITY METHOD INVESTMENT EQUITY METHOD INVESTMENT | 6 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | EQUITY METHOD INVESTMENT The Partnership’s investment in Advantage Pipeline, L.L.C. (“Advantage Pipeline”), over which the Partnership had significant influence but not control, was accounted for by the equity method. The Partnership did not consolidate any part of the assets or liabilities of Advantage Pipeline. On April 3, 2017, Advantage Pipeline was acquired by a joint venture formed by affiliates of Plains All American Pipeline, L.P. and Noble Midstream Partners LP. The Partnership received cash proceeds at closing from the sale of its approximate 30% equity ownership interest in Advantage Pipeline of approximately $25.3 million and recorded a gain on the sale of the investment of $4.2 million . Approximately 10% of the gross sale proceeds were held in escrow, subject to certain post-closing settlement terms and conditions. The Partnership received approximately $1.1 million of the funds held in escrow in August 2017, and approximately $2.2 million for its pro rata portion of the remaining net escrow proceeds in January 2018. The Partnership’s proceeds were used to prepay revolving debt (without a commitment reduction). As of June 30, 2019 , the Partnership had no equity investments. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Estimated Useful Lives (Years) December 31, 2018 June 30, (dollars in thousands) Land N/A $ 24,705 $ 24,705 Land improvements 10-20 5,758 5,810 Pipelines and facilities 5-30 116,155 117,448 Storage and terminal facilities 10-35 321,096 325,247 Transportation equipment 3-10 2,798 1,782 Office property and equipment and other 3-20 26,980 27,244 Pipeline linefill and tank bottoms N/A 10,297 8,262 Construction-in-progress N/A 4,026 4,052 Property, plant and equipment, gross 511,815 514,550 Accumulated depreciation (263,554 ) (273,420 ) Property, plant and equipment, net $ 248,261 $ 241,130 Property, plant and equipment under operating leases at June 30, 2019 , in which the Partnership is the lessor, had a cost basis of $284.9 million and accumulated depreciation of $175.7 million . Depreciation expense for the three months ended June 30, 2018 and 2019 , was $6.7 million and $5.5 million , respectively. Depreciation expense for the six months ended June 30, 2018 and 2019 , was $13.7 million and $11.4 million , respectively. During the six months ended June 30, 2019 , the Partnership recognized asset impairment expense of $2.2 million . A change in estimate of the push-down impairment related to Cimarron Express Pipeline, LLC (“Cimarron Express”) resulted in additional impairment expense of $1.9 million . This impairment is recorded at the corporate level and the estimate is based on the expected amount due to Ergon, Inc. (“Ergon”) if the Put (as defined in Note 10) is exercised (see Note 10 for more information). In addition, flooding at several asphalt plants in the Midwest led to an impairment of $0.3 million . During the six months ended June 30, 2019 , the Partnership sold various surplus assets, including the sale of three truck stations for $1.6 million , which resulted in a gain of $1.5 million , and the sale of pipeline linefill for $1.6 million , which resulted in a gain of $0.2 million . In addition, proceeds received during the six months ended June 30, 2019 , included $2.6 million related to a sale of pipeline linefill in December 2018, for which the proceeds were received in January 2019. On July 12, 2018, the Partnership sold certain asphalt terminals, storage tanks and related real property, contracts, permits, assets and other interests located in Lubbock and Saginaw, Texas and Memphis, Tennessee (the “Divestiture”) to Ergon Asphalt & Emulsion, Inc. for a purchase price of $90.0 million , subject to customary adjustments. The Divestiture does not qualify as discontinued operations as it does not represent a strategic shift that will have a major effect on the Partnership’s operations or financial results. The Partnership used the proceeds from the sale to prepay revolving debt under its credit agreement. In April 2018, the Partnership sold its producer field services business. The Partnership received cash proceeds at closing of approximately $3.0 million and recorded a gain of $0.4 million . The sale of the producer field services business does not qualify as discontinued operations as it does not represent a strategic shift that will have a major effect on the Partnership’s operations or financial results. The Partnership used the proceeds from the sale to prepay revolving debt under its credit agreement. In March 2018, the Partnership acquired an asphalt terminalling facility in Oklahoma from a third party for approximately $22.0 million , consisting of property, plant and equipment of $11.5 million , intangible assets of $7.6 million and goodwill of $2.9 million . |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT On May 11, 2017, the Partnership entered into an amended and restated credit agreement. On June 28, 2018, the credit agreement was amended to, among other things, reduce the revolving loan facility from $450.0 million to $400.0 million and amend the maximum permitted consolidated total leverage ratio as discussed below. As of August 1, 2019 , approximately $256.6 million of revolver borrowings and $1.0 million of letters of credit were outstanding under the credit agreement, leaving the Partnership with approximately $142.4 million available capacity for additional revolver borrowings and letters of credit under the credit agreement, although the Partnership’s ability to borrow such funds may be limited by the financial covenants in the credit agreement. The proceeds of loans made under the credit agreement may be used for working capital and other general corporate purposes of the Partnership. 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. 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 $600.0 million for all revolving loan commitments under the credit agreement. The credit agreement will mature on May 11, 2022 , and all amounts outstanding under the credit agreement will become due and payable on such date. 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 3.25% 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 1.0% ) plus an applicable margin that ranges from 1.0% to 2.25% . 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 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. Prior to 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 maximum permitted consolidated total leverage ratio will be 5.25 to 1.00 for the fiscal quarter ending June 30, 2019; 5.00 to 1.00 for the fiscal quarters ending September 30, 2019, and December 31, 2019; and 4.75 to 1.00 for the fiscal quarter ending March 31, 2020, and each fiscal quarter thereafter; provided that the maximum permitted consolidated total leverage ratio may be increased to 5.25 to 1.00 for certain quarters after December 31, 2019, based on the occurrence of a specified acquisition (as defined in the credit agreement, but generally being an acquisition for which the aggregate consideration is $15.0 million or more). 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 maximum permitted consolidated total leverage ratio is 5.00 to 1.00; provided that from and after the fiscal quarter ending immediately preceding the fiscal quarter in which a specified acquisition occurs to and including the last day of the second full fiscal quarter following the fiscal quarter in which such acquisition occurred, the maximum permitted consolidated total leverage ratio will be 5.50 to 1.00. 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 (“credit agreement EBITDA”) 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; and • make certain amendments to the Fourth Amended and Restated Agreement of Limited Partnership of the Partnership (the “Partnership’s partnership agreement”). At June 30, 2019 , the Partnership’s consolidated total leverage ratio was 4.60 to 1.00 and the consolidated interest coverage ratio was 3.68 to 1.00. The Partnership was in compliance with all covenants of its credit agreement as of June 30, 2019 . Management evaluates whether conditions and/or events raise substantial doubt about the Partnership’s ability to continue as a going concern within one year after the date that the consolidated financial statements are issued (the “assessment period”). In performing this assessment, management considered the risk associated with its ongoing ability to meet the financial covenants. Based on the Partnership’s forecasted credit agreement EBITDA during the assessment period, management believes that it will remain in compliance with these financial covenants (as described below). However, there are certain inherent risks associated with our continued ability to comply with our consolidated total leverage ratio covenant. These risks relate, among other things, to potential future (a) decreases in storage volumes and rates as well as throughput and transportation rates realized; (b) weather phenomenon that may potentially hinder the Partnership’s asphalt business activity; and (c) other items affecting forecasted levels of expenditures and uses of cash resources. Violation of the consolidated total leverage ratio covenant would be an event of default under the credit agreement, which would cause our $261.6 million in outstanding debt, as of June 30, 2019 , to become immediately due and payable. If this were to occur, the Partnership would not expect to have sufficient liquidity to repay these outstanding amounts then due, which could cause the lenders under the credit facility to pursue other remedies. Such remedies could include exercising their collateral rights to the Partnership’s assets. Based on management’s current forecasts, management believes the Partnership will be able to comply with the consolidated total leverage ratio during the assessment period. However, the Partnership cannot make any assurances that it will be able to achieve management’s forecasts. If the Partnership is unable to achieve management’s forecasts, further actions may be necessary to remain in compliance with the Partnership’s consolidated total leverage ratio covenant including, but not limited to, cost reductions, common and preferred unitholder distribution curtailments, and/or asset sales. The Partnership can make no assurances that it would be successful in undertaking these actions or that the Partnership will remain in compliance with the consolidated total leverage ratio during the assessment period. 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, provided, however, commencing with the fiscal quarter ending September 30, 2018, in no event shall aggregate quarterly distributions in any individual fiscal quarter exceed $10.7 million through, and including, the fiscal quarter ending December 31, 2019. 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 9 for additional information regarding distributions. In addition to other customary events of default, the credit agreement includes an event of default if: (i) the general partner ceases to own 100% of the Partnership’s general partner interest or ceases to control the Partnership; (ii) Ergon ceases to own and control 50% or more of the membership interests of the general partner; or (iii) during any period of 12 consecutive months, a majority of the members of the Board of the general partner ceases to be composed of individuals: (A) who were members of the Board on the first day of such period; (B) whose election or nomination to the Board was approved by individuals referred to in clause (A) above constituting at the time of such election or nomination at least a majority of the Board; or (C) whose election or nomination to the Board was approved by individuals referred to in clauses (A) and (B) above constituting at the time of such election or nomination at least a majority of the Board, provided that any changes to the composition of individuals serving as members of the Board approved by Ergon will not cause an event of default. 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 to have letters of credit issued under the credit agreement. Upon the execution of the first amendment to its credit agreement in June 2018, the Partnership expensed $0.4 million of debt issuance costs due to the reduction in available borrowing capacity. The Partnership capitalized $0.3 million of debt issuance costs during each of the three and six months ended June 30, 2018 . Debt issuance costs are being amortized over the term of the credit agreement. Interest expense related to debt issuance cost amortization for each of the three months ended June 30, 2018 and 2019 , was $0.3 million . Interest expense related to debt issuance cost amortization for each of the six months ended June 30, 2018 and 2019 , was $0.5 million . During the three months ended June 30, 2018 and 2019 , the weighted average interest rate under the Partnership’s credit agreement, excluding the $0.4 million of debt issuance costs in 2018 that were expensed as described above, was 5.39% and 6.27% , respectively, resulting in interest expense of approximately 4.7 million and $4.1 million , respectively. During the six months ended June 30, 2018 and 2019 , the weighted average interest rate under the Partnership’s credit agreement, excluding the $0.4 million of debt issuance costs in 2018 that were expensed as described above, was 5.18% and 6.35% , respectively, resulting in interest expense of approximately $8.6 million and $8.4 million , respectively. The Partnership is exposed to market risk for changes in interest rates related to its credit agreement. Interest rate swap agreements are sometimes used to manage a portion of the exposure related to changing interest rates by converting floating-rate debt to fixed-rate debt. As of June 30, 2019 , the Partnership had no interest rate swap agreements; interest rate swap agreements with notional amounts totaling $100.0 million matured on January 28, 2019. During the three months ended June 30, 2018 , the Partnership recorded swap interest income of $0.1 million . During the six months ended June 30, 2018 and 2019 , the Partnership recorded swap interest income of less than $0.1 million for both periods. The interest rate swaps did not receive hedge accounting treatment under ASC 815 - Derivatives and Hedging . The following provides information regarding the Partnership’s assets and liabilities related to its interest rate swap agreements as of the periods indicated (in thousands): Derivatives Not Designated as Hedging Instruments Balance Sheet Location Fair Value of Derivatives December 31, 2018 Interest rate swap assets - current Other current assets $ 44 Changes in the fair value of the interest rate swaps are reflected in the unaudited condensed consolidated statements of operations as follows (in thousands): Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Net Income on Derivatives Amount of Gain (Loss) Recognized in Net Income on Derivatives Three Months ended June 30, Six Months ended June 30, 2018 2018 2019 Interest rate swaps Interest expense $ (40 ) $ 314 $ (44 ) |
NET INCOME PER LIMITED PARTNER
NET INCOME PER LIMITED PARTNER UNIT | 6 Months Ended |
Jun. 30, 2019 | |
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 Partnership’s 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, 2018 2019 2018 2019 Net income $ 1,785 $ 3,356 $ 6,227 $ 7,113 General partner interest in net income 28 53 259 158 Preferred interest in net income 6,279 6,279 12,557 12,558 Net loss available to limited partners $ (4,522 ) $ (2,976 ) $ (6,589 ) $ (5,603 ) Basic and diluted weighted average number of units: Common units 40,324 40,715 40,306 40,696 Restricted and phantom units 1,133 1,076 983 904 Total units 41,457 41,791 41,289 41,600 Basic and diluted net loss per common unit $ (0.11 ) $ (0.07 ) $ (0.16 ) $ (0.13 ) |
PARTNERS' CAPITAL AND DISTRIBUT
PARTNERS' CAPITAL AND DISTRIBUTIONS | 6 Months Ended |
Jun. 30, 2019 | |
Partners' Capital Account, Distributions [Abstract] | |
PARTNERS' CAPITAL AND DISTRIBUTIONS | PARTNERS’ CAPITAL AND DISTRIBUTIONS On July 18, 2019 , the Partnership announced that the Board approved a cash distribution of $0.17875 per outstanding preferred unit for the three months ended June 30, 2019 . The Partnership will pay this distribution on August 14, 2019 , to unitholders of record as of August 2, 2019 . The total distribution will be approximately $6.4 million , with approximately $6.3 million and $0.1 million paid to the Partnership’s preferred unitholders and general partner, respectively. In addition, the Board approved a cash distribution of $0.04 per outstanding common unit for the three months ended June 30, 2019 . The Partnership will pay this distribution on August 14, 2019 , to unitholders of record on August 2, 2019 . The total distribution will be approximately $1.7 million , with approximately $1.6 million and less than $0.1 million to be paid to the Partnership’s common unitholders and general partner, respectively, and less than $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, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED-PARTY TRANSACTIONS Transactions with Ergon The Partnership leases asphalt facilities and provides asphalt terminalling services to Ergon. For the three months ended June 30, 2018 and 2019 , the Partnership recognized related-party revenues of $13.5 million and $8.8 million , respectively, for services provided to Ergon. For the six months ended June 30, 2018 and 2019 , the Partnership recognized related-party revenues of $27.5 million and $17.9 million , respectively, for services provided to Ergon. As of December 31, 2018 , and June 30, 2019 , the Partnership had receivables from Ergon of $1.0 million and $1.1 million , respectively, net of allowance for doubtful accounts. As of December 31, 2018 , and June 30, 2019 , the Partnership had unearned revenues from Ergon of $6.5 million and $9.3 million , respectively. Effective April 1, 2018, the Partnership entered into an agreement with Ergon under which the Partnership purchases crude oil in connection with its crude oil marketing operations. For the three months ended June 30, 2018 and 2019 , the Partnership made purchases of crude oil under this agreement totaling $30.5 million and $36.1 million , respectively. For the six months ended June 30, 2018 and 2019 , the Partnership made purchases of crude oil under this agreement totaling $30.5 million and $65.8 million , respectively. As of June 30, 2019 , the Partnership had payables to Ergon related to this agreement of $10.2 million related to the June crude oil settlement cycle, and this balance was paid in full on July 19, 2019. The Partnership and Ergon have an agreement (the “Agreement”) that gives each party rights concerning the purchase or sale of Ergon’s interest in Cimarron Express, subject to certain terms and conditions. Cimarron Express was planned to be a new 16-inch diameter, 65-mile crude oil pipeline running from northeastern Kingfisher County, Oklahoma to the Partnership’s Cushing, Oklahoma crude oil terminal, with an originally anticipated in-service date in the second half of 2019. Ergon formed a Delaware limited liability company, Ergon - Oklahoma Pipeline, LLC (“DEVCO”), which holds Ergon’s 50% membership interest in Cimarron Express. Under the Agreement, the Partnership has the right, at any time, to purchase 100% of the authorized and outstanding member interests in DEVCO from Ergon for the Purchase Price (as defined in the Agreement), which shall be computed by taking Ergon’s total investment in the Cimarron Express plus interest, by giving written notice to Ergon (the “Call”). Ergon has the right to require the Partnership to purchase 100% of the authorized and outstanding member interests of DEVCO for the Purchase Price (the “Put”) at any time beginning the earlier of (i) 18 months from the formation, May 9, 2018, of the joint venture company to build the pipeline, (ii) six months after completion of the pipeline, or (iii) the event of dissolution of Cimarron Express. Upon exercise of the Call or the Put, the Partnership and Ergon will execute the Member Interest Purchase Agreement, which is attached to the Agreement as Exhibit B. Upon receipt of the Purchase Price, Ergon shall be obligated to convey 100% of the authorized and outstanding member interests in DEVCO to the Partnership or its designee. As of June 30, 2019 , neither Ergon nor the Partnership has exercised their options under the Agreement. In December 2018, the Partnership and Ergon were informed that Kingfisher Midstream made the decision to suspend future investments in Cimarron Express as Kingfisher Midstream determined that the anticipated volumes from the currently dedicated acreage, and the resultant project economics, did not support additional investment from Kingfisher Midstream. As of December 31, 2018, Cimarron Express had spent approximately $30.6 million on the pipeline project, primarily related to the purchase of steel pipe and equipment, rights of way and engineering and design services. Cimarron Express recorded a $20.9 million impairment charge in the fourth quarter of 2018 to reduce the carrying amount of its assets to their estimated fair value. Ergon recorded a $10.0 million other-than-temporary impairment on its investment in Cimarron Express as of December 31, 2018, to reduce its investment to its estimated fair value. As a result, the Partnership considered the SEC staff’s opinions outlined in SAB 107 Topic 5.T Accounting for Expenses or Liabilities Paid by Principal Stockholders. The Agreement was designed to have the Partnership, ultimately and from the onset, bear any risk of loss on the construction of the pipeline project and eventually own a 50% interest in the pipeline. As a result, the Partnership recorded on a push-down basis a $10.0 million impairment of Ergon’s investment in Cimarron Express in its consolidated results of operations during the year ended December 31, 2018, and a contingent liability payable to Ergon as of December 31, 2018. In April 2019, certain assets from the project were sold to a third party for approximately $1.4 million over the fair market value that was estimated at December 31, 2018, and the Partnership recorded its share, on a push-down basis, based on Ergon’s 50% interest in the assets. Ergon’s interest in DEVCO includes its capital contributions, its share of the cash received for the assets sale discussed above, internal Ergon labor costs and capitalized interest, which brings its investment in DEVCO to approximately $10.7 million through June 30, 2019 . During the six months ended June 30, 2019 , a change in estimate and accrued interest resulted in the Partnership recording additional impairment expense of $1.9 million . The Partnership’s contingent liability as of June 30, 2019 , consists of Ergon’s $10.7 million investment plus accrued interest of $1.3 million , of which $0.4 million of interest relates to the three months ended June 30, 2019. |
LONG-TERM INCENTIVE PLAN
LONG-TERM INCENTIVE PLAN | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
LONG-TERM INCENTIVE PLAN | LONG-TERM INCENTIVE PLAN In July 2007, the general partner adopted the Long-Term Incentive Plan (the “LTIP”), which is administered by the compensation committee of the Board. 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 to 4,100,000 common units, subject to adjustments for certain events. 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. 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 and phantom units are entitled to receive cash distributions paid on common units during the vesting period which 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 connection with each anniversary of joining the Board, restricted common units are granted to the independent directors. The units vest in one-third increments over three years. The following table includes information on outstanding grants made to the directors under the LTIP: Grant Date Number of Units Weighted Average Grant Date Fair Value (1) Grant Date Total Fair Value (in thousands) December 2016 10,950 $ 6.85 $ 75 December 2017 15,306 $ 4.85 $ 74 December 2018 23,436 $ 1.20 $ 28 _________________ (1) Fair value is the closing market price on the grant date of the awards. In addition, the independent directors received common unit grants that have no vesting requirement as part of their compensation. The following table includes information on grants made to the directors under the LTIP that have no vesting requirement: Grant Date Number of Units Weighted Average Grant Date Fair Value (1) Grant Date Total Fair Value (in thousands) December 2016 10,220 $ 6.85 $ 70 December 2017 14,286 $ 4.85 $ 69 December 2018 21,875 $ 1.20 $ 26 _________________ (1) Fair value is the closing market price on the grant date of the awards. The Partnership also grants phantom units to employees. 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 three -year vesting period. The following table includes information on the outstanding grants: Grant Date Number of Units Weighted Average Grant Date Fair Value (1) Grant Date Total Fair Value (in thousands) March 2017 323,339 $ 7.15 $ 2,312 March 2018 457,984 $ 4.77 $ 2,185 March 2019 524,997 $ 1.14 $ 598 June 2019 46,168 $ 1.08 $ 50 _________________ (1) Fair value is the closing market price on the grant date of the awards. The unrecognized estimated compensation cost of outstanding phantom and restricted units at June 30, 2019 , was $1.4 million , which will be expensed over the remaining vesting period. The Partnership’s equity-based incentive compensation expense for the three months ended June 30, 2018 and 2019 , was $0.6 million and $0.3 million , respectively. The Partnership’s equity-based incentive compensation expense for the six months ended June 30, 2018 and 2019 , was $1.1 million and $0.6 million , respectively. Activity pertaining to phantom and restricted common unit awards granted under the LTIP is as follows: Number of Units Weighted Average Grant Date Fair Value Nonvested at December 31, 2018 998,219 $ 5.88 Granted 571,165 1.14 Vested 366,282 4.80 Forfeited 69,624 3.24 Nonvested at June 30, 2019 1,133,478 $ 3.52 |
EMPLOYEE BENEFIT PLAN
EMPLOYEE BENEFIT PLAN | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLAN | EMPLOYEE BENEFIT PLANS Under the Partnership’s 401(k) Plan, which was instituted in 2009, employees who meet specified service requirements may contribute a percentage of their total compensation, up to a specified maximum, to the 401(k) Plan. The Partnership may match each employee’s contribution, up to a specified maximum, in full or on a partial basis. The Partnership recognized expense of $0.3 million for each of the three months ended June 30, 2018 and 2019 , for discretionary contributions under the 401(k) Plan. The Partnership recognized expense of $0.6 million for each of the six months ended June 30, 2018 and 2019 , 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 less than $0.1 million and $0.1 million for the three months ended June 30, 2018 and 2019 , respectively, for discretionary profit sharing contributions under the 401(k) Plan. The Partnership recognized expense of $0.1 million and $0.3 million for the six months ended June 30, 2018 and 2019 , respectively, for discretionary profit sharing contributions under the 401(k) Plan. Under the Partnership’s Employee Unit Purchase Plan (the “Unit Purchase Plan”), which was instituted in January 2015, employees have the opportunity to acquire or increase their ownership of common units representing limited partner interests in the Partnership. Eligible employees who enroll in the Unit Purchase Plan may elect to have a designated whole percentage, up to a specified maximum, of their eligible compensation for each pay period withheld for the purchase of common units at a discount to the then current market value. A maximum of 1,000,000 common units may be delivered under the Unit Purchase Plan, subject to adjustment for a recapitalization, split, reorganization, or similar event pursuant to the terms of the Unit Purchase Plan. The Partnership recognized compensation expense of less than $0.1 million for the each of the three and six months ended June 30, 2018 and 2019 , in connection with the Unit Purchase Plan. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS 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 assets and liabilities required to be measured at fair value, 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. In periods in which they occur, the Partnership recognizes transfers into and out of Level 3 as of the end of the reporting period. There were no transfers during the six months ended June 30, 2019 . Transfers out of Level 3 represent existing assets and liabilities that were classified previously as Level 3 for which the observable inputs became a more significant portion of the fair value estimates. Determining the appropriate classification of the Partnership’s fair value measurements within the fair value hierarchy requires management’s judgment regarding the degree to which market data is observable or corroborated by observable market data. 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 December 31, 2018 Description Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Interest rate swap assets $ 44 $ — $ 44 $ — Total swap assets $ 44 $ — $ 44 $ — As of June 30, 2019 , the Partnership had no interest rate swap agreements. 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, 2019 , the carrying values on the unaudited 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, 2019 , 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. |
LEASES (Notes)
LEASES (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | LEASES The Partnership adopted ASU 2016-02, Leases (Topic 842) as of January 1, 2019, using the modified retrospective approach applied at the beginning of the period of adoption. The Partnership elected the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allowed it to carry forward the historical lease classification. Adoption of the new standard resulted in the recording of additional net right of use operating lease assets and operating lease liabilities of approximately $11.8 million and $11.9 million , respectively, as of January 1, 2019. The standard did not materially impact the consolidated statement of operations and had no impact on cash flows. The Partnership leases certain office space, land and equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet; lease expense for these leases is recognized as paid over the lease term. For real property leases, the Partnership has elected the practical expedient to not separate nonlease components (e.g., common-area maintenance costs) from lease components and to instead account for each component as a single lease component. For leases that do not contain an implicit interest rate, the Partnership uses its most recent incremental borrowing rate. Some real property and equipment leases contain options to renew, with renewal terms that can extend indefinitely. The exercise of such lease renewal options is at the Partnership’s sole discretion. Certain equipment leases also contain purchase options and residual value guarantees. The Partnership determines the lease term at the lease commencement date as the non-cancellable period of the lease, including options to extend or terminate the lease when such an option is reasonably certain to be exercised. The Partnership uses various data to analyze these options, including historical trends, current expectations and useful lives of assets related to the lease. As of Classification June 30, 2019 (thousands) Assets Operating lease assets Operating lease assets $ 12,009 Finance lease assets Other noncurrent assets 753 Total leased assets $ 12,762 Liabilities Current Operating lease liabilities Current operating lease liability $ 2,682 Finance lease liabilities Other current liabilities 276 Noncurrent Operating lease liabilities Noncurrent operating lease liability 9,402 Finance lease liabilities Other long-term liabilities 448 Total lease liabilities $ 12,808 Future commitments, including options to extend lease terms that are reasonably certain of being exercised, related to leases at June 30, 2019 , are summarized below (in thousands): Operating Leases Financing Leases Twelve months ending June 30, 2020 $ 2,885 $ 304 Twelve months ending June 30, 2021 2,475 263 Twelve months ending June 30, 2022 1,737 171 Twelve months ending June 30, 2023 1,480 35 Twelve months ending June 30, 2024 1,123 3 Thereafter 6,402 — Total 16,102 776 Less: Interest 4,018 52 Present value of lease liabilities $ 12,084 $ 724 Future non-cancellable commitments related to operating leases at December 31, 2018, are summarized below (in thousands): Operating Leases Year ending December 31, 2019 $ 2,862 Year ending December 31, 2020 1,904 Year ending December 31, 2021 1,242 Year ending December 31, 2022 640 Year ending December 31, 2023 548 Thereafter 1,259 Total future minimum lease payments $ 8,455 The following table summarizes the Partnership’s total lease cost by type as well as cash flow information (in thousands): Three Months ended June 30, Six Months ended June 30, Classification 2019 2019 Total Lease Cost by Type: Operating lease cost (1) Operating Expense $ 1,054 $ 2,196 Finance lease cost Amortization of leased assets Operating Expense 81 151 Interest on lease liabilities Interest Expense 10 17 Net lease cost $ 1,145 $ 2,364 Supplemental cash flow disclosures: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (1,444 ) Operating cash flows from finance leases $ (70 ) Financing cash flows from finance leases $ (145 ) Leased assets obtained in exchange for new operating lease liabilities $ 1,678 Leased assets obtained in exchange for new finance lease liabilities $ 342 ____________________ (1) Includes short-term and variable lease costs, which are immaterial. As of June 30, 2019 Lease Term and Discount Rate Weighted-average remaining lease term (years) Operating leases 9.6 Finance leases 2.8 Weighted-average discount rate Operating leases 5.73 % Finance leases 4.64 % The Partnership also incurs costs associated with acquiring and maintaining rights-of-way. The contracts for these generally either extend beyond one year but can be cancelled at any time should they no longer be required for operations or have no contracted term but contain perpetual annual or monthly renewal options. Rights-of-way generally do not provide for exclusive use of the land and as such are not accounted for as leases. |
OPERATING SEGMENTS
OPERATING SEGMENTS | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
OPERATING SEGMENTS | OPERATING SEGMENTS The Partnership’s operations consist of four reportable segments: (i) asphalt terminalling services, (ii) crude oil terminalling services, (iii) crude oil pipeline services and (iv) crude oil trucking services. ASPHALT TERMINALLING SERVICES —The Partnership provides asphalt product and residual fuel terminalling services, including storage, blending, processing and throughput services. On July 12, 2018, the Partnership sold three asphalt facilities. See Note 6 for additional information. The Partnership has 53 terminalling facilities located in 26 states. CRUDE OIL TERMINALLING SERVICES —The Partnership provides crude oil terminalling services at its terminalling facility located in Oklahoma. CRUDE OIL PIPELINE SERVICES —The Partnership owns and operates pipeline systems 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 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 pipeline system. Crude oil product sales revenues consist of sales proceeds recognized for the sale of crude oil to third-party customers. CRUDE OIL TRUCKING 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. The Partnership’s management evaluates segment performance based upon operating margin, excluding amortization and depreciation, which includes revenues from related parties and external customers and operating expense, excluding depreciation and amortization. Operating margin, excluding depreciation and amortization (in the aggregate and by segment) is presented in the following table. The Partnership computes the components of operating margin, excluding depreciation and amortization by using amounts that are determined in accordance with GAAP. The Partnership accounts for intersegment product sales as if the sales were to third parties, that is, at current market prices. A reconciliation of operating margin, excluding depreciation and amortization 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, excluding depreciation and amortization 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, 2018 2019 2018 2019 Asphalt Terminalling Services Service revenue: Third-party revenue $ 6,639 $ 6,850 $ 11,771 $ 13,831 Related-party revenue 5,981 3,981 12,302 8,098 Lease revenue: Third-party revenue 10,016 9,819 19,473 19,582 Related-party revenue 7,475 4,812 15,178 9,752 Total revenue for reportable segment 30,111 25,462 58,724 51,263 Operating expense, excluding depreciation and amortization 13,393 11,670 26,728 23,955 Operating margin, excluding depreciation and amortization $ 16,718 $ 13,792 $ 31,996 $ 27,308 Total assets (end of period) $ 167,849 $ 149,603 $ 167,849 $ 149,603 Crude Oil Terminalling Services Service revenue: Third-party revenue $ 2,910 $ 4,020 $ 7,496 $ 7,594 Intersegment revenue 170 278 170 576 Lease revenue: Third-party revenue 12 — 27 — Total revenue for reportable segment 3,092 4,298 7,693 8,170 Operating expense, excluding depreciation and amortization 913 1,017 2,188 2,299 Operating margin, excluding depreciation and amortization $ 2,179 $ 3,281 $ 5,505 $ 5,871 Total assets (end of period) $ 67,150 $ 67,272 $ 67,150 $ 67,272 Three Months ended June 30, Six Months ended June 30, 2018 2019 2018 2019 Crude Oil Pipeline Services Service revenue: Third-party revenue $ 1,045 $ 1,972 $ 3,105 $ 4,470 Related-party revenue 82 101 82 203 Lease revenue: Third-party revenue 177 — 412 — Product sales revenue: Third-party revenue 45,612 59,636 49,120 118,560 Total revenue for reportable segment 46,916 61,709 52,719 123,233 Operating expense, excluding depreciation and amortization 2,542 2,749 5,327 5,471 Intersegment operating expense 1,156 1,704 1,599 3,331 Third-party cost of product sales 20,041 20,510 22,678 45,097 Related-party cost of product sales 23,747 36,421 23,747 67,195 Operating margin, excluding depreciation and amortization $ (570 ) $ 325 $ (632 ) $ 2,139 Total assets (end of period) $ 152,105 $ 94,436 $ 152,105 $ 94,436 Crude Oil Trucking Services Service revenue Third-party revenue $ 3,509 $ 2,885 $ 9,049 $ 5,718 Intersegment revenue 986 1,426 1,429 2,755 Lease revenue: Third-party revenue 32 — 129 — Product sales revenue: Third-party revenue 3 — 9 — Total revenue for reportable segment 4,530 4,311 10,616 8,473 Operating expense, excluding depreciation and amortization 4,727 4,242 11,101 8,462 Operating margin, excluding depreciation and amortization $ (197 ) $ 69 $ (485 ) $ 11 Total assets (end of period) $ 3,402 $ 4,951 $ 3,402 $ 4,951 Total operating margin, excluding depreciation and amortization (1) $ 18,130 $ 17,467 $ 36,384 $ 35,329 Total Segment Revenues $ 84,649 $ 95,780 $ 129,752 $ 191,139 Elimination of Intersegment Revenues (1,156 ) (1,704 ) (1,599 ) (3,331 ) Consolidated Revenues $ 83,493 $ 94,076 $ 128,153 $ 187,808 ____________________ (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, 2018 2019 2018 2019 Operating margin, excluding depreciation and amortization $ 18,130 $ 17,467 $ 36,384 $ 35,329 Depreciation and amortization (7,413 ) (6,237 ) (14,779 ) (12,971 ) General and administrative expense (4,486 ) (2,962 ) (8,707 ) (6,655 ) Asset impairment expense — (1,114 ) (616 ) (2,233 ) Gain on sale of assets 599 81 363 1,805 Other income — 268 — 268 Gain on sale of unconsolidated affiliate — — 2,225 — Interest expense (5,024 ) (4,134 ) (8,593 ) (8,405 ) Income before income taxes $ 1,806 $ 3,369 $ 6,277 $ 7,138 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2019 | |
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. 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 present value of 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, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES 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, 2019 , are presented below (dollars in thousands): Deferred Tax Asset Difference in bases of property, plant and equipment $ 245 Net operating loss carryforwards 18 Deferred tax asset 263 Less: valuation allowance 263 Net deferred tax asset $ — The Partnership has considered the taxable income projections in future years, whether future revenue and operating cost projections will produce enough taxable income to realize the deferred tax asset based on existing service rates and cost structures and the Partnership’s earnings history exclusive of the loss that created the future deductible amount for the Partnership’s subsidiary that is taxed as a corporation for purposes of determining the likelihood of realizing the benefits of the deferred tax assets. As a result of the Partnership’s consideration of these factors, the Partnership has provided a valuation allowance against its deferred tax asset as of June 30, 2019 . |
RECENTLY ISSUED ACCOUNTING STAN
RECENTLY ISSUED ACCOUNTING STANDARDS | 6 Months Ended |
Jun. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENTLY ISSUED ACCOUNTING STANDARDS | RECENTLY ISSUED ACCOUNTING STANDARDS Except as discussed below and in the 2018 Form 10-K, there have been no new accounting pronouncements that have become effective or have been issued during the six months ended June 30, 2019 , that are of significance or potential significance to the Partnership. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. This is a comprehensive update to the lease accounting topic in the Codification intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendments in ASU 2016-02 include a revised definition of a lease as well as certain scope exceptions. The changes primarily impact lessee accounting, while lessor accounting is largely unchanged from previous GAAP. The Partnership adopted this standard as of January 1, 2019, using the modified retrospective approach. See Note 3 and Note 14 for disclosures related to the adoption of this standard and the impact on the Partnership’s financial position, results of operations and cash flows. |
SUBSEQUENT EVENTS (Notes)
SUBSEQUENT EVENTS (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS On August 5, 2019, Ergon publicly announced that it submitted to the Board a non-binding proposal, pursuant to which Ergon would acquire all common units and preferred units of the Partnership that Ergon and its affiliates do not already own in exchange for $1.35 per common unit and $5.67 per preferred unit. The transaction, as proposed, is subject to a number of contingencies, including the approval of the Conflicts Committee of the Board, the approval by the Partnership’s unitholders and the satisfaction of any conditions to the consummation of a transaction set forth in any definitive agreement concerning the transaction. There can be no assurance that definitive agreement will be executed or that any transaction will materialize. |
REVENUE Minimum Future Annual L
REVENUE Minimum Future Annual Lease Rentals Due (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Lessor Disclosure [Abstract] | |
Lessor, Operating Lease, Payments to be Received, Maturity [Table Text Block] | The following table includes revenue associated with contractual commitments in place related to future performance obligations as of the end of the reporting period, which are expected to be recognized in revenue in the specified periods (in thousands): Revenue from Contracts with Customers (1) Revenue from Leases Remainder of 2019 $ 15,475 $ 27,983 2020 30,391 53,259 2021 27,240 49,230 2022 19,937 38,545 2023 14,533 29,609 Thereafter 9,142 22,342 Total revenue related to future performance obligations $ 116,718 $ 220,968 |
REVENUE Revenue from Contracts
REVENUE Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | The following table includes revenue associated with contractual commitments in place related to future performance obligations as of the end of the reporting period, which are expected to be recognized in revenue in the specified periods (in thousands): Revenue from Contracts with Customers (1) Revenue from Leases Remainder of 2019 $ 15,475 $ 27,983 2020 30,391 53,259 2021 27,240 49,230 2022 19,937 38,545 2023 14,533 29,609 Thereafter 9,142 22,342 Total revenue related to future performance obligations $ 116,718 $ 220,968 ____________________ (1) Excluded from the table is revenue that is either constrained or related to performance obligations that are wholly unsatisfied as of June 30, 2019 . |
Disaggregation of Revenue [Table Text Block] | Disaggregation of revenue from contracts with customers for each operating segment by revenue type is presented as follows (in thousands): Asphalt Terminalling Services Crude Oil Terminalling Services Crude Oil Pipeline Services Crude Oil Trucking Services Total Three Months ended June 30, 2018 Third-party revenue: Fixed storage, throughput and other revenue $ 4,622 $ 2,767 $ — $ — $ 7,389 Variable throughput revenue 242 143 — — 385 Variable reimbursement revenue 1,775 — — — 1,775 Crude oil transportation revenue — — 1,045 3,509 4,554 Crude oil product sales revenue — — 45,612 3 45,615 Related-party revenue: Fixed storage, throughput and other revenue 4,632 — 48 — 4,680 Variable reimbursement revenue 1,349 — 34 — 1,383 Total revenue from contracts with customers $ 12,620 $ 2,910 $ 46,739 $ 3,512 $ 65,781 Asphalt Terminalling Services Crude Oil Terminalling Services Crude Oil Pipeline Services Crude Oil Trucking Services Total Six Months ended June 30, 2018 Third-party revenue: Fixed storage, throughput and other revenue $8,171 $ 6,849 $ — $ — $ 15,020 Variable throughput revenue 359 647 — — 1,006 Variable reimbursement revenue 3,241 — — — 3,241 Crude oil transportation revenue — — 3,105 9,049 12,154 Crude oil product sales revenue — — 49,120 9 49,129 Related-party revenue: Fixed storage, throughput and other revenue 9,263 — 48 — 9,311 Variable reimbursement revenue 3,039 — 34 — 3,073 Total revenue from contracts with customers $ 24,073 $ 7,496 $ 52,307 $ 9,058 $ 92,934 Three Months ended June 30, 2019 Third-party revenue: Fixed storage, throughput and other revenue 5,053 3,377 — — 8,430 Variable throughput revenue 33 643 — — 676 Variable reimbursement revenue 1,764 — — — 1,764 Crude oil transportation revenue — — 1,972 2,885 4,857 Crude oil product sales revenue — — 59,636 — 59,636 Related-party revenue: Fixed storage, throughput and other revenue 2,858 — 83 — 2,941 Variable reimbursement revenue 1,123 — 18 — 1,141 Total revenue from contracts with customers 10,831 4,020 61,709 2,885 79,445 Six Months ended June 30, 2019 Third-party revenue: Fixed storage, throughput and other revenue 10,035 6,447 — — 16,482 Variable throughput revenue 36 1,147 — — 1,183 Variable reimbursement revenue 3,760 — — — 3,760 Crude oil transportation revenue — — 4,470 5,718 10,188 Crude oil product sales revenue — — 118,560 — 118,560 Related-party revenue: Fixed storage, throughput and other revenue 5,705 — 167 — 5,872 Variable reimbursement revenue 2,393 — 36 — 2,429 Total revenue from contracts with customers 21,929 7,594 123,233 5,718 158,474 |
RESTRUCTURING CHARGES (Tables)
RESTRUCTURING CHARGES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Crude Oil Trucking Services [Member] | West Texas Trucking Market Exit Plan [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs [Table Text Block] | Changes in the accrued amounts pertaining to the restructuring charges are summarized as follows (in thousands): Three Months ended June 30, Six Months ended June 30, 2018 2018 Beginning balance $ 237 $ 286 Cash payments 237 286 Ending balance $ — $ — |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Estimated Useful Lives (Years) December 31, 2018 June 30, (dollars in thousands) Land N/A $ 24,705 $ 24,705 Land improvements 10-20 5,758 5,810 Pipelines and facilities 5-30 116,155 117,448 Storage and terminal facilities 10-35 321,096 325,247 Transportation equipment 3-10 2,798 1,782 Office property and equipment and other 3-20 26,980 27,244 Pipeline linefill and tank bottoms N/A 10,297 8,262 Construction-in-progress N/A 4,026 4,052 Property, plant and equipment, gross 511,815 514,550 Accumulated depreciation (263,554 ) (273,420 ) Property, plant and equipment, net $ 248,261 $ 241,130 |
DEBT Fair Values of Derivative
DEBT Fair Values of Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives Not Designated as Hedging Instruments [Table Text Block] | s information regarding the Partnership’s assets and liabilities related to its interest rate swap agreements as of the periods indicated (in thousands): Derivatives Not Designated as Hedging Instruments Balance Sheet Location Fair Value of Derivatives December 31, 2018 Interest rate swap assets - current Other current assets $ 44 Changes in the fair value of the interest rate swaps are reflected in the unaudited condensed consolidated statements of operations as follows (in thousands): Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Net Income on Derivatives Amount of Gain (Loss) Recognized in Net Income on Derivatives Three Months ended June 30, Six Months ended June 30, 2018 2018 2019 Interest rate swaps Interest expense $ (40 ) $ 314 $ (44 ) |
NET INCOME PER LIMITED PARTNE_2
NET INCOME PER LIMITED PARTNER UNIT (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2018 2019 2018 2019 Net income $ 1,785 $ 3,356 $ 6,227 $ 7,113 General partner interest in net income 28 53 259 158 Preferred interest in net income 6,279 6,279 12,557 12,558 Net loss available to limited partners $ (4,522 ) $ (2,976 ) $ (6,589 ) $ (5,603 ) Basic and diluted weighted average number of units: Common units 40,324 40,715 40,306 40,696 Restricted and phantom units 1,133 1,076 983 904 Total units 41,457 41,791 41,289 41,600 Basic and diluted net loss per common unit $ (0.11 ) $ (0.07 ) $ (0.16 ) $ (0.13 ) |
LONG-TERM INCENTIVE PLAN (Table
LONG-TERM INCENTIVE PLAN (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation Arrangements by Share-based Payment Award, Restricted Stock Units, Vested and Expected to Vest [Table Text Block] | In connection with each anniversary of joining the Board, restricted common units are granted to the independent directors. The units vest in one-third increments over three years. The following table includes information on outstanding grants made to the directors under the LTIP: Grant Date Number of Units Weighted Average Grant Date Fair Value (1) Grant Date Total Fair Value (in thousands) December 2016 10,950 $ 6.85 $ 75 December 2017 15,306 $ 4.85 $ 74 December 2018 23,436 $ 1.20 $ 28 _________________ (1) Fair value is the closing market price on the grant date of the awards. In addition, the independent directors received common unit grants that have no vesting requirement as part of their compensation. The following table includes information on grants made to the directors under the LTIP that have no vesting requirement: Grant Date Number of Units Weighted Average Grant Date Fair Value (1) Grant Date Total Fair Value (in thousands) December 2016 10,220 $ 6.85 $ 70 December 2017 14,286 $ 4.85 $ 69 December 2018 21,875 $ 1.20 $ 26 _________________ (1) Fair value is the closing market price on the grant date of the awards. |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | The Partnership also grants phantom units to employees. 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 three -year vesting period. The following table includes information on the outstanding grants: Grant Date Number of Units Weighted Average Grant Date Fair Value (1) Grant Date Total Fair Value (in thousands) March 2017 323,339 $ 7.15 $ 2,312 March 2018 457,984 $ 4.77 $ 2,185 March 2019 524,997 $ 1.14 $ 598 June 2019 46,168 $ 1.08 $ 50 _________________ (1) Fair value is the closing market price on the grant date of the awards. |
Schedule Of Phantom Common Units And Restricted Common Units Activity | Activity pertaining to phantom and restricted common unit awards granted under the LTIP is as follows: Number of Units Weighted Average Grant Date Fair Value Nonvested at December 31, 2018 998,219 $ 5.88 Granted 571,165 1.14 Vested 366,282 4.80 Forfeited 69,624 3.24 Nonvested at June 30, 2019 1,133,478 $ 3.52 |
FAIR VALUE MEASUREMENTS Fair Va
FAIR VALUE MEASUREMENTS Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
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 December 31, 2018 Description Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Interest rate swap assets $ 44 $ — $ 44 $ — Total swap assets $ 44 $ — $ 44 $ — |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Assets and Liabilities, Lessee | As of Classification June 30, 2019 (thousands) Assets Operating lease assets Operating lease assets $ 12,009 Finance lease assets Other noncurrent assets 753 Total leased assets $ 12,762 Liabilities Current Operating lease liabilities Current operating lease liability $ 2,682 Finance lease liabilities Other current liabilities 276 Noncurrent Operating lease liabilities Noncurrent operating lease liability 9,402 Finance lease liabilities Other long-term liabilities 448 Total lease liabilities $ 12,808 |
Lessee, Operating Lease, Liability, Maturity | Future commitments, including options to extend lease terms that are reasonably certain of being exercised, related to leases at June 30, 2019 , are summarized below (in thousands): Operating Leases Financing Leases Twelve months ending June 30, 2020 $ 2,885 $ 304 Twelve months ending June 30, 2021 2,475 263 Twelve months ending June 30, 2022 1,737 171 Twelve months ending June 30, 2023 1,480 35 Twelve months ending June 30, 2024 1,123 3 Thereafter 6,402 — Total 16,102 776 Less: Interest 4,018 52 Present value of lease liabilities $ 12,084 $ 724 |
Finance Lease, Liability, Maturity | Future commitments, including options to extend lease terms that are reasonably certain of being exercised, related to leases at June 30, 2019 , are summarized below (in thousands): Operating Leases Financing Leases Twelve months ending June 30, 2020 $ 2,885 $ 304 Twelve months ending June 30, 2021 2,475 263 Twelve months ending June 30, 2022 1,737 171 Twelve months ending June 30, 2023 1,480 35 Twelve months ending June 30, 2024 1,123 3 Thereafter 6,402 — Total 16,102 776 Less: Interest 4,018 52 Present value of lease liabilities $ 12,084 $ 724 |
Lease Liability, Maturity | Future non-cancellable commitments related to operating leases at December 31, 2018, are summarized below (in thousands): Operating Leases Year ending December 31, 2019 $ 2,862 Year ending December 31, 2020 1,904 Year ending December 31, 2021 1,242 Year ending December 31, 2022 640 Year ending December 31, 2023 548 Thereafter 1,259 Total future minimum lease payments $ 8,455 |
Lease, Cost | The following table summarizes the Partnership’s total lease cost by type as well as cash flow information (in thousands): Three Months ended June 30, Six Months ended June 30, Classification 2019 2019 Total Lease Cost by Type: Operating lease cost (1) Operating Expense $ 1,054 $ 2,196 Finance lease cost Amortization of leased assets Operating Expense 81 151 Interest on lease liabilities Interest Expense 10 17 Net lease cost $ 1,145 $ 2,364 Supplemental cash flow disclosures: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (1,444 ) Operating cash flows from finance leases $ (70 ) Financing cash flows from finance leases $ (145 ) Leased assets obtained in exchange for new operating lease liabilities $ 1,678 Leased assets obtained in exchange for new finance lease liabilities $ 342 ____________________ (1) Includes short-term and variable lease costs, which are immaterial. As of June 30, 2019 Lease Term and Discount Rate Weighted-average remaining lease term (years) Operating leases 9.6 Finance leases 2.8 Weighted-average discount rate Operating leases 5.73 % Finance leases 4.64 % |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Three Months ended June 30, Six Months ended June 30, 2018 2019 2018 2019 Asphalt Terminalling Services Service revenue: Third-party revenue $ 6,639 $ 6,850 $ 11,771 $ 13,831 Related-party revenue 5,981 3,981 12,302 8,098 Lease revenue: Third-party revenue 10,016 9,819 19,473 19,582 Related-party revenue 7,475 4,812 15,178 9,752 Total revenue for reportable segment 30,111 25,462 58,724 51,263 Operating expense, excluding depreciation and amortization 13,393 11,670 26,728 23,955 Operating margin, excluding depreciation and amortization $ 16,718 $ 13,792 $ 31,996 $ 27,308 Total assets (end of period) $ 167,849 $ 149,603 $ 167,849 $ 149,603 Crude Oil Terminalling Services Service revenue: Third-party revenue $ 2,910 $ 4,020 $ 7,496 $ 7,594 Intersegment revenue 170 278 170 576 Lease revenue: Third-party revenue 12 — 27 — Total revenue for reportable segment 3,092 4,298 7,693 8,170 Operating expense, excluding depreciation and amortization 913 1,017 2,188 2,299 Operating margin, excluding depreciation and amortization $ 2,179 $ 3,281 $ 5,505 $ 5,871 Total assets (end of period) $ 67,150 $ 67,272 $ 67,150 $ 67,272 Three Months ended June 30, Six Months ended June 30, 2018 2019 2018 2019 Crude Oil Pipeline Services Service revenue: Third-party revenue $ 1,045 $ 1,972 $ 3,105 $ 4,470 Related-party revenue 82 101 82 203 Lease revenue: Third-party revenue 177 — 412 — Product sales revenue: Third-party revenue 45,612 59,636 49,120 118,560 Total revenue for reportable segment 46,916 61,709 52,719 123,233 Operating expense, excluding depreciation and amortization 2,542 2,749 5,327 5,471 Intersegment operating expense 1,156 1,704 1,599 3,331 Third-party cost of product sales 20,041 20,510 22,678 45,097 Related-party cost of product sales 23,747 36,421 23,747 67,195 Operating margin, excluding depreciation and amortization $ (570 ) $ 325 $ (632 ) $ 2,139 Total assets (end of period) $ 152,105 $ 94,436 $ 152,105 $ 94,436 Crude Oil Trucking Services Service revenue Third-party revenue $ 3,509 $ 2,885 $ 9,049 $ 5,718 Intersegment revenue 986 1,426 1,429 2,755 Lease revenue: Third-party revenue 32 — 129 — Product sales revenue: Third-party revenue 3 — 9 — Total revenue for reportable segment 4,530 4,311 10,616 8,473 Operating expense, excluding depreciation and amortization 4,727 4,242 11,101 8,462 Operating margin, excluding depreciation and amortization $ (197 ) $ 69 $ (485 ) $ 11 Total assets (end of period) $ 3,402 $ 4,951 $ 3,402 $ 4,951 Total operating margin, excluding depreciation and amortization (1) $ 18,130 $ 17,467 $ 36,384 $ 35,329 Total Segment Revenues $ 84,649 $ 95,780 $ 129,752 $ 191,139 Elimination of Intersegment Revenues (1,156 ) (1,704 ) (1,599 ) (3,331 ) Consolidated Revenues $ 83,493 $ 94,076 $ 128,153 $ 187,808 ____________________ (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, 2018 2019 2018 2019 Operating margin, excluding depreciation and amortization $ 18,130 $ 17,467 $ 36,384 $ 35,329 Depreciation and amortization (7,413 ) (6,237 ) (14,779 ) (12,971 ) General and administrative expense (4,486 ) (2,962 ) (8,707 ) (6,655 ) Asset impairment expense — (1,114 ) (616 ) (2,233 ) Gain on sale of assets 599 81 363 1,805 Other income — 268 — 268 Gain on sale of unconsolidated affiliate — — 2,225 — Interest expense (5,024 ) (4,134 ) (8,593 ) (8,405 ) Income before income taxes $ 1,806 $ 3,369 $ 6,277 $ 7,138 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 , are presented below (dollars in thousands): Deferred Tax Asset Difference in bases of property, plant and equipment $ 245 Net operating loss carryforwards 18 Deferred tax asset 263 Less: valuation allowance 263 Net deferred tax asset $ — |
ORGANIZATION AND NATURE OF BU_2
ORGANIZATION AND NATURE OF BUSINESS (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2019Operating-segmentsStates | |
ORGANIZATION AND NATURE OF BUSINESS [Abstract] | |
Number of states in which entity operates (in states) | States | 27 |
Number of operating segments (in operating segments) | Operating-segments | 4 |
REVENUE Narrative (Details)
REVENUE Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Accounts Receivable, after Allowance for Credit Loss, Current | $ 26,661 | $ 35,683 |
Revenue related to future performance obligations | 116,718 | |
Billed contract accounts receivable | 23,800 | 34,600 |
Contract with Customer, Liability, Current | 6,400 | $ 5,900 |
Changes in deferred revenue [Roll Forward] | ||
Deferred revenue, additions | 3,700 | |
Contract with customer, liability, revenue recognized | $ 3,200 | |
Asphalt Terminalling Services [Member] | Variable Throughput Revenue [Member] | ||
Revenue, Performance Obligation, Description of Payment Terms | P30D | |
Asphalt Terminalling Services [Member] | Variable Reimbursement Revenue [Member] | ||
Revenue, Performance Obligation, Description of Payment Terms | P30D | |
Crude Oil Terminalling Services [Member] | Variable Throughput Revenue [Member] | ||
Revenue, Performance Obligation, Description of Payment Terms | P30D | |
Crude Oil Pipeline Services [Member] | Crude Oil Transportation Revenue [Member] | ||
Revenue, Performance Obligation, Description of Payment Terms | P30D | |
Crude Oil Pipeline Services [Member] | Crude Oil Product Sales Revenue [Member] | ||
Revenue, Performance Obligation, Description of Payment Terms | P30D | |
Crude Oil Trucking Services [Member] | Crude Oil Transportation Revenue [Member] | ||
Revenue, Performance Obligation, Description of Payment Terms | P30D |
REVENUE Disaggregation of Reven
REVENUE Disaggregation of Revenue (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 79,445,000 | $ 65,781,000 | $ 158,474,000 | $ 92,934,000 |
Fixed Storage and Throughput Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 8,430,000 | 7,389,000 | 16,482,000 | 15,020,000 |
Variable Throughput Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 676,000 | 385,000 | 1,183,000 | 1,006,000 |
Variable Reimbursement Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 1,764,000 | 1,775,000 | 3,760,000 | 3,241,000 |
Crude Oil Transportation Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 4,857,000 | 4,554,000 | 10,188,000 | 12,154,000 |
Crude Oil Product Sales Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 59,636,000 | 45,615,000 | 118,560,000 | 49,129,000 |
Asphalt Terminalling Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 10,831,000 | 12,620,000 | 21,929,000 | 24,073,000 |
Asphalt Terminalling Services [Member] | Fixed Storage and Throughput Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 5,053,000 | 4,622,000 | 10,035,000 | 8,171,000 |
Asphalt Terminalling Services [Member] | Variable Throughput Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 33,000 | 242,000 | 36,000 | 359,000 |
Asphalt Terminalling Services [Member] | Variable Reimbursement Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 1,764,000 | 1,775,000 | 3,760,000 | 3,241,000 |
Asphalt Terminalling Services [Member] | Crude Oil Transportation Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Asphalt Terminalling Services [Member] | Crude Oil Product Sales Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Crude Oil Terminalling Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 4,020,000 | 2,910,000 | 7,594,000 | 7,496,000 |
Crude Oil Terminalling Services [Member] | Fixed Storage and Throughput Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 3,377,000 | 2,767,000 | 6,447,000 | 6,849,000 |
Crude Oil Terminalling Services [Member] | Variable Throughput Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 643,000 | 143,000 | 1,147,000 | 647,000 |
Crude Oil Terminalling Services [Member] | Variable Reimbursement Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Crude Oil Terminalling Services [Member] | Crude Oil Transportation Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Crude Oil Terminalling Services [Member] | Crude Oil Product Sales Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Crude Oil Pipeline Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 61,709,000 | 46,739,000 | 123,233,000 | 52,307,000 |
Crude Oil Pipeline Services [Member] | Fixed Storage and Throughput Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Crude Oil Pipeline Services [Member] | Variable Throughput Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Crude Oil Pipeline Services [Member] | Variable Reimbursement Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Crude Oil Pipeline Services [Member] | Crude Oil Transportation Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 1,972,000 | 1,045,000 | 4,470,000 | 3,105,000 |
Crude Oil Pipeline Services [Member] | Crude Oil Product Sales Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 59,636,000 | 45,612,000 | 118,560,000 | 49,120,000 |
Crude Oil Trucking Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 2,885,000 | 3,512,000 | 5,718,000 | 9,058,000 |
Crude Oil Trucking Services [Member] | Fixed Storage and Throughput Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Crude Oil Trucking Services [Member] | Variable Throughput Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Crude Oil Trucking Services [Member] | Variable Reimbursement Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Crude Oil Trucking Services [Member] | Crude Oil Transportation Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 2,885,000 | 3,509,000 | 5,718,000 | 9,049,000 |
Crude Oil Trucking Services [Member] | Crude Oil Product Sales Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 3,000 | 0 | 9,000 |
Affiliated Entity [Member] | Fixed Storage and Throughput Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 2,941,000 | 4,680,000 | 5,872,000 | 9,311,000 |
Affiliated Entity [Member] | Variable Reimbursement Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 1,141,000 | 1,383,000 | 2,429,000 | 3,073,000 |
Affiliated Entity [Member] | Asphalt Terminalling Services [Member] | Fixed Storage and Throughput Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 2,858,000 | 4,632,000 | 5,705,000 | 9,263,000 |
Affiliated Entity [Member] | Asphalt Terminalling Services [Member] | Variable Reimbursement Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 1,123,000 | 1,349,000 | 2,393,000 | 3,039,000 |
Affiliated Entity [Member] | Crude Oil Terminalling Services [Member] | Fixed Storage and Throughput Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Affiliated Entity [Member] | Crude Oil Terminalling Services [Member] | Variable Reimbursement Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Affiliated Entity [Member] | Crude Oil Pipeline Services [Member] | Fixed Storage and Throughput Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 83,000 | 48,000 | 167,000 | 48,000 |
Affiliated Entity [Member] | Crude Oil Pipeline Services [Member] | Variable Reimbursement Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 18,000 | 34,000 | 36,000 | 34,000 |
Affiliated Entity [Member] | Crude Oil Trucking Services [Member] | Fixed Storage and Throughput Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Affiliated Entity [Member] | Crude Oil Trucking Services [Member] | Variable Reimbursement Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 0 | $ 0 | $ 0 | $ 0 |
REVENUE Revenue Related to Futu
REVENUE Revenue Related to Future Performance Obligations Due by Period (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue related to future performance obligations | $ 116,718 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue related to future performance obligations | $ 15,475 |
Revenue related to future performance obligations | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue related to future performance obligations | $ 30,391 |
Revenue related to future performance obligations | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue related to future performance obligations | $ 27,240 |
Revenue related to future performance obligations | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue related to future performance obligations | $ 19,937 |
Revenue related to future performance obligations | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue related to future performance obligations | $ 14,533 |
Revenue related to future performance obligations | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue related to future performance obligations | $ 9,142 |
Revenue related to future performance obligations |
REVENUE Lease Revenue due by Pe
REVENUE Lease Revenue due by Period (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Operating Leases, Future Minimum Payments Receivable, Remainder of Fiscal Year | $ 27,983 |
Operating Leases, Future Minimum Payments Receivable, in Two Years | 53,259 |
Operating Leases, Future Minimum Payments Receivable, in Three Years | 49,230 |
Operating Leases, Future Minimum Payments Receivable, in Four Years | 38,545 |
Operating Leases, Future Minimum Payments Receivable, in Five Years | 29,609 |
Operating Leases, Future Minimum Payments Receivable, Thereafter | 22,342 |
Operating Leases, Future Minimum Payments Receivable | $ 220,968 |
RESTRUCTURING CHARGES (Details)
RESTRUCTURING CHARGES (Details) - West Texas Trucking Market Exit Plan [Member] - Crude Oil Trucking Services [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve | $ 0 | $ 0 | $ 237 | $ 286 |
Cash payments | $ 237 | $ 286 |
EQUITY METHOD INVESTMENT (Detai
EQUITY METHOD INVESTMENT (Details) - USD ($) $ in Thousands | Jan. 02, 2018 | Apr. 03, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 |
Schedule of Equity Method Investments [Line Items] | |||||||
Proceeds from sale of unconsolidated affiliate | $ 0 | $ 2,225 | |||||
Gain on sale of unconsolidated affiliate | $ 0 | $ 0 | $ 0 | $ 2,225 | |||
Advantage Pipeline, L.L.C. [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 30.00% | ||||||
Proceeds from sale of unconsolidated affiliate | $ 2,200 | $ 25,300 | $ 1,100 | ||||
Gain on sale of unconsolidated affiliate | $ 4,200 | ||||||
Proceeds from Sale of Equity Method Investment, Percent Held In Escrow | 10.00% |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | Jul. 13, 2018 | Apr. 24, 2018 | Jan. 31, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | |||||||||
Property Subject to or Available for Operating Lease, Gross | $ 284,900 | $ 284,900 | |||||||
Property Subject to or Available for Operating Lease, Accumulated Depreciation | 175,700 | 175,700 | |||||||
Property, plant and equipment, gross | 514,550 | 514,550 | $ 511,815 | ||||||
Accumulated depreciation | 273,420 | 273,420 | 263,554 | ||||||
Property, plant and equipment, net | 241,130 | 241,130 | 248,261 | ||||||
Depreciation | 5,500 | $ 6,700 | 11,400 | $ 13,700 | |||||
Asset impairment expense | 1,114 | 0 | 2,233 | 616 | |||||
Proceeds from sale of assets | 6,351 | 3,893 | |||||||
Gain on sale of assets | 81 | $ 599 | 1,805 | 363 | |||||
Payments to Acquire Businesses, Gross | 0 | $ 21,959 | |||||||
Land | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Property, plant and equipment, gross | 24,705 | 24,705 | 24,705 | ||||||
Land improvements | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Property, plant and equipment, gross | 5,810 | 5,810 | 5,758 | ||||||
Pipelines [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Property, plant and equipment, gross | 117,448 | 117,448 | 116,155 | ||||||
Storage and terminal facilities | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Property, plant and equipment, gross | 325,247 | 325,247 | 321,096 | ||||||
Transportation equipment | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Property, plant and equipment, gross | 1,782 | 1,782 | 2,798 | ||||||
Office property and equipment and other | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Property, plant and equipment, gross | 27,244 | 27,244 | 26,980 | ||||||
Pipeline linefill and tank bottoms | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Property, plant and equipment, gross | 8,262 | 8,262 | 10,297 | ||||||
Construction-in-progress | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Property, plant and equipment, gross | $ 4,052 | $ 4,052 | 4,026 | ||||||
Min | Land improvements | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Estimated Useful Lives (Years) | 10 years | ||||||||
Min | Pipelines [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Estimated Useful Lives (Years) | 5 years | ||||||||
Min | Storage and terminal facilities | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Estimated Useful Lives (Years) | 10 years | ||||||||
Min | Transportation equipment | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Estimated Useful Lives (Years) | 3 years | ||||||||
Min | Office property and equipment and other | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Estimated Useful Lives (Years) | 3 years | ||||||||
Max | Land improvements | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Estimated Useful Lives (Years) | 20 years | ||||||||
Max | Pipelines [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Estimated Useful Lives (Years) | 30 years | ||||||||
Max | Storage and terminal facilities | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Estimated Useful Lives (Years) | 35 years | ||||||||
Max | Transportation equipment | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Estimated Useful Lives (Years) | 10 years | ||||||||
Max | Office property and equipment and other | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Estimated Useful Lives (Years) | 20 years | ||||||||
Asphalt Terminalling Services [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Proceeds from Sale of Property Held-for-sale | $ 90,000 | ||||||||
Asphalt Terminalling Services [Member] | Storage and terminal facilities | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Asset impairment expense | $ 271 | ||||||||
Crude Oil Pipeline Services [Member] | Pipeline linefill and tank bottoms | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Proceeds from sale of assets | 2,600 | ||||||||
Oklahoma [Member] | Asphalt Terminalling Services [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Payments to Acquire Businesses, Gross | $ 22,000 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 11,500 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 7,600 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | $ 2,900 | ||||||||
Oklahoma [Member] | Crude Oil Pipeline Services [Member] | Pipeline linefill and tank bottoms | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Proceeds from sale of assets | $ 1,600 | ||||||||
Gain on sale of assets | 200 | ||||||||
Texas [Member] | Crude Oil Trucking Services [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Proceeds from sale of assets | 1,600 | ||||||||
Gain on sale of assets | 1,481 | ||||||||
Proceeds from Sale of Property Held-for-sale | $ 3,000 | ||||||||
Gain (Loss) on Disposition of Assets | $ 400 | ||||||||
Cimarron Express [Member] | Ergon [Member] | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Other than Temporary Impairment Losses, Investments | $ 1,900 | $ 10,000 |
DEBT (Credit Agreements) (Detai
DEBT (Credit Agreements) (Details) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Aug. 01, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 28, 2018USD ($) | |
Debt Instrument [Line Items] | |||||||
Maximum quarterly distribution | $ 10,700,000 | ||||||
Write off of Deferred Debt Issuance Cost | $ 400,000 | $ 400,000 | |||||
Payments of Debt Issuance Costs | 309,000 | $ 0 | 309,000 | ||||
Debt issuance costs, noncurrent, net | 2,846,000 | 2,846,000 | $ 3,349,000 | ||||
Amortization of debt issuance costs | 251,000 | 256,000 | 503,000 | 512,000 | |||
Interest expense for long-term debt | 4,100,000 | $ 4,700,000 | 8,400,000 | 8,600,000 | |||
Long-term Debt, Excluding Current Maturities | 261,592,000 | 261,592,000 | $ 265,592,000 | ||||
Payments under credit agreement | 162,000,000 | $ 71,000,000 | |||||
Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Revolving credit facility amount | 400,000,000 | 400,000,000 | $ 450,000,000 | ||||
Maximum borrowing capacity including additional lenders | $ 600,000,000 | $ 600,000,000 | |||||
Debt instrument maximum covenant consolidated senior secured leverage ratio | 3.50 | 3.50 | |||||
Consolidated interest coverage (as a ratio), minimum permitted | 2.50 | 2.50 | |||||
Consolidated total leverage (as a ratio), actual | 4.60 | 4.60 | |||||
Consolidated interest coverage (as a ratio), actual | 3.68 | 3.68 | |||||
Debt instrument, interest rate during period | 6.27% | 5.39% | 6.35% | 5.18% | |||
Revolving Credit Facility [Member] | Min | |||||||
Debt Instrument [Line Items] | |||||||
Unused capacity, commitment fee (as a percent) | 0.375% | ||||||
Debt instrument covenant, issued qualified senior notes | $ 200,000,000 | $ 200,000,000 | |||||
Revolving Credit Facility [Member] | Max | |||||||
Debt Instrument [Line Items] | |||||||
Unused capacity, commitment fee (as a percent) | 0.50% | ||||||
Revolving Credit Facility [Member] | Subsequent Event [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Revolver borrowings | $ 256,600,000 | ||||||
Unused borrowing capacity | 142,400,000 | ||||||
Revolving Credit Facility [Member] | Federal funds rate [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate (as a percent) | 0.50% | ||||||
Revolving Credit Facility [Member] | Eurodollar rate [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate (as a percent) | 1.00% | ||||||
Revolving Credit Facility [Member] | Applicable margin based on ABR [Member] | Min | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate (as a percent) | 1.00% | ||||||
Revolving Credit Facility [Member] | Applicable margin based on ABR [Member] | Max | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate (as a percent) | 2.30% | ||||||
Revolving Credit Facility [Member] | Applicable margin based on Eurodollar rate [Member] | Min | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate (as a percent) | 2.00% | ||||||
Revolving Credit Facility [Member] | Applicable margin based on Eurodollar rate [Member] | Max | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate (as a percent) | 3.25% | ||||||
Letter of Credit [Member] | Subsequent Event [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Letters of credit outstanding | $ 1,000,000 | ||||||
Aggregate Principal Below Threshold [Member] | Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Minimum acquisition costs | $ 15,000,000 | ||||||
Debt instrument covenant, issued qualified senior notes | 200,000,000 | 200,000,000 | |||||
Aggregate Principal Above Threshold [Member] | Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument covenant, issued qualified senior notes | $ 200,000,000 | $ 200,000,000 | |||||
Provision One, Applicable Period One [Member] | Aggregate Principal Below Threshold [Member] | Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Consolidated total leverage (as a ratio), maximum permitted | 5.25 | 5.25 | |||||
Provision One, Applicable Period Two [Member] | Aggregate Principal Below Threshold [Member] | Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Consolidated total leverage (as a ratio), maximum permitted | 5 | 5 | |||||
Provision One, Applicable Period Three [Member] | Aggregate Principal Below Threshold [Member] | Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Consolidated total leverage (as a ratio), maximum permitted | 4.75 | 4.75 | |||||
Provision Two, Applicable Period One [Member] | Aggregate Principal Below Threshold [Member] | Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Consolidated total leverage (as a ratio), maximum permitted | 5.25 | 5.25 | |||||
Provision Three, Applicable Period One [Member] | Aggregate Principal Above Threshold [Member] | Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Consolidated total leverage (as a ratio), maximum permitted | 5 | 5 | |||||
Provision Three, Applicable Period Two [Member] | Aggregate Principal Above Threshold [Member] | Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Consolidated total leverage (as a ratio), maximum permitted | 5.50 | 5.50 | |||||
Ergon [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit agreement change of control provision, Ergon minimum control percentage | 50.00% | ||||||
Blueknight General Partners G. P., L.L.C. [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit agreement change of control provision, General Partner ownership minimum | 100.00% |
DEBT Derivative Instruments (De
DEBT Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jan. 28, 2019 | Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Interest Income, Other | $ 100 | $ 100 | $ 24 | ||
Document Period End Date | Jun. 30, 2019 | ||||
Interest Rate Swaps, Notional Amount | $ 0 | ||||
Notional Amount, Expired | $ 100,000 | ||||
Unrealized Gain (Loss) on Interest Rate Swaps | $ (40) | $ (44) | $ 314 | ||
Other Current Assets [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Interest Rate Swap Assets - Current | $ 44 |
NET INCOME PER LIMITED PARTNE_3
NET INCOME PER LIMITED PARTNER UNIT (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 3,356 | $ 1,785 | $ 7,113 | $ 6,227 |
General partner interest in net income | 53 | 28 | 158 | 259 |
Preferred interest in net income | 6,279 | 6,279 | 12,558 | 12,557 |
Net loss available to limited partners | $ (2,976) | $ (4,522) | $ (5,603) | $ (6,589) |
Basic and diluted weighted average number of units: | ||||
Common units | 40,715 | 40,324 | 40,696 | 40,306 |
Weighted Average Restricted and Phantom Partnership Units Outstanding, Basic and Diluted | 1,076 | 1,133 | 904 | 983 |
Total Weighted Average Limited Partnership Units Outstanding, Basic and Diluted | 41,791 | 41,457 | 41,600 | 41,289 |
Basic and diluted net loss per common unit | $ (0.07) | $ (0.11) | $ (0.13) | $ (0.16) |
PARTNERS' CAPITAL AND DISTRIB_2
PARTNERS' CAPITAL AND DISTRIBUTIONS Cash Distributions Paid on Preferred Units (Details) - Preferred Units [Member] $ / shares in Units, $ in Millions | 3 Months Ended |
Jun. 30, 2019USD ($)$ / shares | |
Preferred and General Partners [Member] | |
Distribution Made to Limited Partner [Line Items] | |
Distribution Made to Limited Partner, Cash Distributions Declared | $ 6.4 |
Preferred Partner [Member] | |
Distribution Made to Limited Partner [Line Items] | |
Distribution Made to Limited Partner, Distributions Declared, Per Unit | $ / shares | $ 0.17875 |
Distribution Made to Limited Partner, Cash Distributions Declared | $ 6.3 |
General Partner [Member] | |
Distribution Made to Limited Partner [Line Items] | |
Distribution Made to Limited Partner, Cash Distributions Declared | $ 0.1 |
PARTNERS' CAPITAL AND DISTRIB_3
PARTNERS' CAPITAL AND DISTRIBUTIONS Cash Distributions Paid on Common Units (Details) - Common Units [Member] $ / shares in Units, $ in Millions | 3 Months Ended |
Jun. 30, 2019USD ($)$ / shares | |
Limited, General Partner, Phantom Share and Restricted Units [Member] | |
Distribution Made to Limited Partner [Line Items] | |
Distribution Made to Limited Partner, Cash Distributions Declared | $ 1.7 |
Limited Partner [Member] | |
Distribution Made to Limited Partner [Line Items] | |
Distribution Made to Limited Partner, Distributions Declared, Per Unit | $ / shares | $ 0.0400 |
Distribution Made to Limited Partner, Cash Distributions Declared | $ 1.6 |
General Partner [Member] | |
Distribution Made to Limited Partner [Line Items] | |
Distribution Made to Limited Partner, Cash Distributions Declared | 0.1 |
Phantom Share Units and Restricted Units [Member] | |
Distribution Made to Limited Partner [Line Items] | |
Distribution Made to Limited Partner, Cash Distributions Declared | $ 0.1 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||||
Receivables from related parties | $ 1,121 | $ 1,121 | $ 1,043 | ||
Accrued crude oil purchases to related parties | 10,180 | 10,180 | 10,219 | ||
Ergon [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related-party revenue | 8,800 | $ 13,500 | 17,900 | $ 27,500 | |
Receivables from related parties | 1,100 | 1,100 | 1,000 | ||
Unearned Revenue with Related Parties | 9,300 | 9,300 | $ 6,500 | ||
Crude Oil Purchase Agreement [Member] | Ergon [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related Party Transaction, Purchases from Related Party | 36,100 | $ 30,500 | 65,800 | $ 30,500 | |
Accrued crude oil purchases to related parties | $ 10,200 | $ 10,200 |
RELATED PARTY TRANSACTIONS Cima
RELATED PARTY TRANSACTIONS Cimarron Transactions (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Apr. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||||
Payments to Acquire Property, Plant, and Equipment | $ 6,240 | $ 22,125 | |||
Fixed asset impairment charge | $ 2,233 | $ 427 | |||
Potential Equity Method Ownership Percentage | 50.00% | ||||
Cimarron Express [Member] | |||||
Related Party Transaction [Line Items] | |||||
Payments to Acquire Property, Plant, and Equipment | $ 30,600 | ||||
Fixed asset impairment charge | 20,900 | ||||
Gain (Loss) on Disposition of Assets | $ 1,400 | ||||
Devco Purchase Agreement [Member] | Ergon [Member] | |||||
Related Party Transaction [Line Items] | |||||
Joint Venture Purchase Option | 100.00% | 100.00% | |||
Cimarron Express [Member] | Ergon [Member] | |||||
Related Party Transaction [Line Items] | |||||
Other than Temporary Impairment Losses, Investments | $ 1,900 | 10,000 | |||
Interest Costs Capitalized | $ 400 | 1,300 | |||
Cimarron Express [Member] | Ergon [Member] | |||||
Related Party Transaction [Line Items] | |||||
Equity Method Investments | $ 10,700 | $ 10,700 | |||
Other than Temporary Impairment Losses, Investments | $ 10,000 | ||||
Cimarron Express [Member] | Ergon [Member] | |||||
Related Party Transaction [Line Items] | |||||
Noncontrolling Interest, Ownership Percentage by Parent | 50.00% | 50.00% |
LONG-TERM INCENTIVE PLAN (Detai
LONG-TERM INCENTIVE PLAN (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Equity-based incentive compensation expense (in dollars) | $ 363 | $ 687 | |||||||||||||
Blueknight Energy Partners G.P., L.L.C. Long-Term Incentive Plan [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Number of units authorized | 4,100,000 | 4,100,000 | 4,100,000 | ||||||||||||
Number of Units [Roll Forward] | |||||||||||||||
Nonvested at December 31, 2018 | 998,219 | ||||||||||||||
Granted | 571,165 | ||||||||||||||
Vested | 366,282 | ||||||||||||||
Forfeited | 69,624 | ||||||||||||||
Nonvested at June 30, 2019 | 1,133,478 | 998,219 | 1,133,478 | 1,133,478 | |||||||||||
Weighted Average Grant Date Fair Value [Roll Forward] | |||||||||||||||
Weighted Average Grant Date Fair Value, Nonvested, Beginning balance (in dollars per unit) | $ 5.88 | ||||||||||||||
Weighted Average Grant Date Fair Value, Granted (in dollars per unit) | 1.14 | ||||||||||||||
Weighted Average Grant Date Fair Value, Vested (in dollars per unit) | 4.80 | ||||||||||||||
Weighted Average Grant Date Fair Value, Forfeited (in dollars per unit) | 3.24 | ||||||||||||||
Weighted Average Grant Date Fair Value, Nonvested, Ending balance (in dollars per unit) | $ 3.52 | $ 5.88 | $ 3.52 | $ 3.52 | |||||||||||
Blueknight Energy Partners G.P., L.L.C. Long-Term Incentive Plan [Member] | Common Stock [Member] | Independent Directors [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Value of award grants (in dollars) | $ 26 | $ 69 | $ 70 | ||||||||||||
Number of Units [Roll Forward] | |||||||||||||||
Granted | 21,875 | 14,286 | 10,220 | ||||||||||||
Weighted Average Grant Date Fair Value [Roll Forward] | |||||||||||||||
Weighted Average Grant Date Fair Value, Granted (in dollars per unit) | [1] | $ 1.20 | $ 4.85 | $ 6.85 | |||||||||||
Blueknight Energy Partners G.P., L.L.C. Long-Term Incentive Plan [Member] | Phantom common units [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Vesting period | 3 years | ||||||||||||||
Unrecognized estimated compensation cost (in dollars) | $ 1,400 | $ 1,400 | $ 1,400 | ||||||||||||
Equity-based incentive compensation expense (in dollars) | $ 300 | $ 600 | $ 600 | $ 1,100 | |||||||||||
Blueknight Energy Partners G.P., L.L.C. Long-Term Incentive Plan [Member] | Restricted common units [Member] | Independent Directors [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Vesting period | 3 years | ||||||||||||||
Value of award grants (in dollars) | $ 28 | $ 74 | $ 75 | ||||||||||||
Number of Units [Roll Forward] | |||||||||||||||
Granted | 23,436 | 15,306 | 10,950 | ||||||||||||
Weighted Average Grant Date Fair Value [Roll Forward] | |||||||||||||||
Weighted Average Grant Date Fair Value, Granted (in dollars per unit) | $ 1.20 | [2] | $ 4.85 | [1] | $ 6.85 | [2] | |||||||||
January 2020 Vesting [Member] | Blueknight Energy Partners G.P., L.L.C. Long-Term Incentive Plan [Member] | Phantom common units [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Value of award grants (in dollars) | $ 2,312 | ||||||||||||||
Number of Units [Roll Forward] | |||||||||||||||
Granted | 323,339 | ||||||||||||||
Weighted Average Grant Date Fair Value [Roll Forward] | |||||||||||||||
Weighted Average Grant Date Fair Value, Granted (in dollars per unit) | [3] | $ 7.15 | |||||||||||||
January 2021 Vesting [Member] | Blueknight Energy Partners G.P., L.L.C. Long-Term Incentive Plan [Member] | Phantom common units [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Value of award grants (in dollars) | $ 2,185 | ||||||||||||||
Number of Units [Roll Forward] | |||||||||||||||
Granted | 457,984 | ||||||||||||||
Weighted Average Grant Date Fair Value [Roll Forward] | |||||||||||||||
Weighted Average Grant Date Fair Value, Granted (in dollars per unit) | [3] | $ 4.77 | |||||||||||||
January 2022 Vesting [Member] | Blueknight Energy Partners G.P., L.L.C. Long-Term Incentive Plan [Member] | Phantom common units [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Value of award grants (in dollars) | $ 598 | ||||||||||||||
Number of Units [Roll Forward] | |||||||||||||||
Granted | 524,997 | ||||||||||||||
Weighted Average Grant Date Fair Value [Roll Forward] | |||||||||||||||
Weighted Average Grant Date Fair Value, Granted (in dollars per unit) | [3] | $ 1.14 | |||||||||||||
June 2022 Vesting [Member] | Blueknight Energy Partners G.P., L.L.C. Long-Term Incentive Plan [Member] | Phantom common units [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Value of award grants (in dollars) | $ 50 | ||||||||||||||
Number of Units [Roll Forward] | |||||||||||||||
Granted | 46,168 | ||||||||||||||
Weighted Average Grant Date Fair Value [Roll Forward] | |||||||||||||||
Weighted Average Grant Date Fair Value, Granted (in dollars per unit) | [3] | $ 1.08 | |||||||||||||
[1] | Fair value is the closing market price on the grant date of the awards. | ||||||||||||||
[2] | Fair value is the closing market price on the grant date of the awards. | ||||||||||||||
[3] | Fair value is the closing market price on the grant date of the awards. |
EMPLOYEE BENEFIT PLAN (Details)
EMPLOYEE BENEFIT PLAN (Details) - Blueknight Energy Partners G.P., L.L.C. 401(K) Plan [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Pension Plan [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Employer discretionary contribution amount | $ 0.3 | $ 0.3 | $ 0.6 | $ 0.6 |
Other Postretirement Benefits Plan [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Employer discretionary contribution amount | $ 0.1 | $ 0.1 | $ 0.3 | $ 0.1 |
EMPLOYEE BENEFIT PLAN EUPP (Det
EMPLOYEE BENEFIT PLAN EUPP (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
EUPP [Abstract] | ||||
Employee Stock Ownership Plan (ESOP), Shares in ESOP | 1,000,000 | 1,000,000 | ||
Employee Stock Ownership Plan (ESOP), Compensation Expense | $ 0.1 | $ 0.1 | $ 0.1 | $ 0.1 |
FAIR VALUE MEASUREMENTS Fair _2
FAIR VALUE MEASUREMENTS Fair Value Measurements (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Interest rate swap assets | $ 44 |
Total swap assets | 44 |
Fair Value, Inputs, Level 1 [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Interest rate swap assets | 0 |
Total swap assets | 0 |
Fair Value, Inputs, Level 2 [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Interest rate swap assets | 44 |
Total swap assets | 44 |
Fair Value, Inputs, Level 3 [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Interest rate swap assets | 0 |
Total swap assets | $ 0 |
LEASES (Details)
LEASES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Operating Lease, Liability | $ 12,084,000 | $ 12,084,000 | ||
Operating Lease, Right-of-Use Asset | 12,009,000 | 12,009,000 | $ 0 | |
Finance Lease, Right-of-Use Asset | 753,000 | 753,000 | ||
Right of Use Lease Assets, Total | 12,762,000 | 12,762,000 | ||
Current operating lease liability | 2,682,000 | 2,682,000 | 0 | |
Finance Lease, Liability, Current | 276,000 | 276,000 | ||
Noncurrent operating lease liability | 9,402,000 | 9,402,000 | $ 0 | |
Finance Lease, Liability, Noncurrent | 448,000 | 448,000 | ||
Lease Liabilities, Total | 12,808,000 | 12,808,000 | ||
Operating lease cost | 1,054,000 | 2,196,000 | ||
Amortization of leased assets | 81,000 | 151,000 | ||
Finance Lease, Interest Expense | 10,000 | 17,000 | ||
Net lease cost | $ 1,145,000 | 2,364,000 | ||
Operating cash flows from operating leases | (1,444,000) | |||
Interest on lease liabilities | (70,000) | |||
Operating cash flows from finance leases | (145,000) | |||
Leased assets obtained in exchange for new operating lease liabilities | 1,678,000 | |||
Leased assets obtained in exchange for new finance lease liabilities | $ 342,000 | |||
Operating leases, Weighted Average Remaining Lease Term | 9 years 7 months | 9 years 7 months | ||
Finance leases, Weighted Average Remaining Lease Term | 2 years 10 months | 2 years 10 months | ||
Operating leases, Weighted Average Discount Rate, Percent | 5.73% | 5.73% | ||
Finance lease, Weighted Average Discount Rate, Percent | 4.64% | 4.64% | ||
Accounting Standards Update 2016-02 [Member] | ||||
Operating Lease, Liability | $ 11,900,000 | |||
Operating Lease, Right-of-Use Asset | $ 11,800,000 |
LEASES Leases, Maturity of Leas
LEASES Leases, Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Operating Leases, After Adoption of 842: | ||
Twelve months ending June 30, 2020 | $ 2,885 | |
Twelve months ending June 30, 2021 | 2,475 | |
Twelve months ending June 30, 2022 | 1,737 | |
Twelve months ending June 30, 2023 | 1,480 | |
Twelve months ending June 30, 2024 | 1,123 | |
Thereafter | 6,402 | |
Total | 16,102 | |
Less: Interest | 4,018 | |
Present value of lease liabilities | 12,084 | |
Finance Leases, After Adoption of 842: | ||
Twelve months ending June 30, 2020 | 304 | |
Twelve months ending June 30, 2021 | 263 | |
Twelve months ending June 30, 2022 | 171 | |
Twelve months ending June 30, 2023 | 35 | |
Twelve months ending June 30, 2024 | 3 | |
Thereafter | 0 | |
Total | 776 | |
Less: Interest | 52 | |
Present value of lease liabilities | $ 724 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
Year ending December 31, 2019 | $ 2,862 | |
Year ending December 31, 2020 | 1,904 | |
Year ending December 31, 2021 | 1,242 | |
Year ending December 31, 2022 | 640 | |
Year ending December 31, 2023 | 548 | |
Thereafter | 1,259 | |
Total future minimum lease payments | $ 8,455 |
OPERATING SEGMENTS (Details)
OPERATING SEGMENTS (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($)Terminalling_And_Storage_Facilities | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)Operating-segmentsTerminalling_And_Storage_Facilities | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | |||||
Document Period End Date | Jun. 30, 2019 | ||||
Number of operating segments (in operating segments) | Operating-segments | 4 | ||||
Service revenue | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 79,445 | $ 65,781 | $ 158,474 | $ 92,934 | |
Lease revenue | 9,819 | 10,237 | 19,582 | 20,041 | |
Lease revenue: | |||||
Total revenue for reportable segments | 94,076 | 83,493 | 187,808 | 128,153 | |
Intersegment operating expenses | 25,915 | 28,988 | 53,158 | 60,123 | |
Cost, Direct Material | 20,510 | 20,041 | 45,097 | 22,678 | |
Operating margin, excluding depreciation and amortization | 17,467 | 18,130 | 35,329 | 36,384 | |
Total assets (end of period) | 316,262 | 316,262 | $ 323,304 | ||
Reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes | |||||
Operating margin, excluding depreciation and amortization | 17,467 | 18,130 | 35,329 | 36,384 | |
Depreciation and amortization | (12,971) | (14,779) | |||
General and administrative expense | (2,962) | (4,486) | (6,655) | (8,707) | |
Asset impairment expense | (1,114) | 0 | (2,233) | (616) | |
Gain on sale of assets | 81 | 599 | 1,805 | 363 | |
Other Income | 268 | 0 | 268 | 0 | |
Interest expense | (4,134) | (5,024) | (8,405) | (8,593) | |
Gain on sale of unconsolidated affiliate | 0 | 0 | 0 | 2,225 | |
Income before income taxes | $ 3,369 | 1,806 | $ 7,138 | 6,277 | |
Asphalt Terminalling 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) | Terminalling_And_Storage_Facilities | 53 | 53 | |||
Service revenue | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 10,831 | 12,620 | $ 21,929 | 24,073 | |
Lease revenue | 9,819 | 10,016 | 19,582 | 19,473 | |
Lease revenue: | |||||
Operating expenses (excluding depreciation and amortization) | 11,670 | 13,393 | 23,955 | 26,728 | |
Operating margin, excluding depreciation and amortization | 13,792 | 16,718 | 27,308 | 31,996 | |
Reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes | |||||
Operating margin, excluding depreciation and amortization | $ 13,792 | 16,718 | $ 27,308 | 31,996 | |
Number of states where Asphalt terminalling and storage facilities are located | Terminalling_And_Storage_Facilities | 26 | 26 | |||
Crude Oil Terminalling Services [Member] | |||||
Service revenue | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 4,020 | 2,910 | $ 7,594 | 7,496 | |
Lease revenue | 0 | 12 | 0 | 27 | |
Lease revenue: | |||||
Operating expenses (excluding depreciation and amortization) | 1,017 | 913 | 2,299 | 2,188 | |
Operating margin, excluding depreciation and amortization | 3,281 | 2,179 | 5,871 | 5,505 | |
Reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes | |||||
Operating margin, excluding depreciation and amortization | 3,281 | 2,179 | 5,871 | 5,505 | |
Crude Oil Pipeline Services [Member] | |||||
Service revenue | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 61,709 | 46,739 | 123,233 | 52,307 | |
Lease revenue | 0 | 177 | 0 | 412 | |
Lease revenue: | |||||
Operating expenses (excluding depreciation and amortization) | 2,749 | 2,542 | 5,471 | 5,327 | |
Cost, Direct Material | 20,510 | 20,041 | 45,097 | 22,678 | |
Operating margin, excluding depreciation and amortization | 325 | (570) | 2,139 | (632) | |
Reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes | |||||
Operating margin, excluding depreciation and amortization | 325 | (570) | 2,139 | (632) | |
Crude Oil Trucking Services [Member] | |||||
Service revenue | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,885 | 3,512 | 5,718 | 9,058 | |
Lease revenue | 0 | 32 | 0 | 129 | |
Lease revenue: | |||||
Operating expenses (excluding depreciation and amortization) | 4,242 | 4,727 | 8,462 | 11,101 | |
Operating margin, excluding depreciation and amortization | 69 | (197) | 11 | (485) | |
Total assets (end of period) | 4,951 | 3,402 | 4,951 | 3,402 | |
Reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes | |||||
Operating margin, excluding depreciation and amortization | 69 | (197) | 11 | (485) | |
Intersegment Eliminations [Member] | |||||
Lease revenue: | |||||
Total revenue for reportable segments | (1,704) | (1,156) | (3,331) | (1,599) | |
Operating Segments [Member] | |||||
Lease revenue: | |||||
Total revenue for reportable segments | 95,780 | 84,649 | 191,139 | 129,752 | |
Operating margin, excluding depreciation and amortization | 17,467 | 18,130 | 35,329 | 36,384 | |
Reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes | |||||
Operating margin, excluding depreciation and amortization | 17,467 | 18,130 | 35,329 | 36,384 | |
Operating Segments [Member] | Asphalt Terminalling Services [Member] | |||||
Lease revenue: | |||||
Total revenue for reportable segments | 25,462 | 30,111 | 51,263 | 58,724 | |
Total assets (end of period) | 149,603 | 167,849 | 149,603 | 167,849 | |
Operating Segments [Member] | Crude Oil Terminalling Services [Member] | |||||
Lease revenue: | |||||
Total revenue for reportable segments | 4,298 | 3,092 | 8,170 | 7,693 | |
Total assets (end of period) | 67,272 | 67,150 | 67,272 | 67,150 | |
Operating Segments [Member] | Crude Oil Pipeline Services [Member] | |||||
Lease revenue: | |||||
Total revenue for reportable segments | 61,709 | 46,916 | 123,233 | 52,719 | |
Total assets (end of period) | 94,436 | 152,105 | 94,436 | 152,105 | |
Operating Segments [Member] | Crude Oil Trucking Services [Member] | |||||
Lease revenue: | |||||
Total revenue for reportable segments | 4,311 | 4,530 | 8,473 | 10,616 | |
Segment Reconciling Items [Member] | |||||
Reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes | |||||
Depreciation and amortization | (6,237) | (7,413) | (12,971) | (14,779) | |
General and administrative expense | (2,962) | (4,486) | (6,655) | (8,707) | |
Asset impairment expense | (1,114) | 0 | (2,233) | (616) | |
Gain on sale of assets | 81 | 599 | 1,805 | 363 | |
Other Income | 268 | 0 | 268 | 0 | |
Interest expense | (4,134) | (5,024) | (8,405) | (8,593) | |
Segment Reconciling Items [Member] | Crude Oil Pipeline Services [Member] | |||||
Lease revenue: | |||||
Intersegment operating expenses | 1,704 | 1,156 | 3,331 | 1,599 | |
Service [Member] | |||||
Service revenue | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 15,727 | 14,103 | 31,613 | 31,421 | |
Service [Member] | Asphalt Terminalling Services [Member] | |||||
Service revenue | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 6,850 | 6,639 | 13,831 | 11,771 | |
Service [Member] | Crude Oil Terminalling Services [Member] | |||||
Service revenue | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 4,020 | 2,910 | 7,594 | 7,496 | |
Service [Member] | Crude Oil Pipeline Services [Member] | |||||
Service revenue | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,972 | 1,045 | 4,470 | 3,105 | |
Service [Member] | Crude Oil Trucking Services [Member] | |||||
Service revenue | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,885 | 3,509 | 5,718 | 9,049 | |
Service [Member] | Intersegment Eliminations [Member] | Crude Oil Terminalling Services [Member] | |||||
Service revenue | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 278 | 170 | 576 | 170 | |
Service [Member] | Intersegment Eliminations [Member] | Crude Oil Trucking Services [Member] | |||||
Service revenue | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,426 | 986 | 2,755 | 1,429 | |
Product [Member] | |||||
Service revenue | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 59,636 | 45,615 | 118,560 | 49,129 | |
Product [Member] | Crude Oil Pipeline Services [Member] | |||||
Service revenue | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 59,636 | 45,612 | 118,560 | 49,120 | |
Product [Member] | Crude Oil Trucking Services [Member] | |||||
Service revenue | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 3 | 0 | 9 | |
Affiliated Entity [Member] | |||||
Service revenue | |||||
Lease revenue | 4,812 | 7,475 | 9,752 | 15,178 | |
Lease revenue: | |||||
Cost, Direct Material | 36,421 | 23,747 | 67,195 | 23,747 | |
Affiliated Entity [Member] | Asphalt Terminalling Services [Member] | |||||
Service revenue | |||||
Lease revenue | 4,812 | 7,475 | 9,752 | 15,178 | |
Affiliated Entity [Member] | Crude Oil Pipeline Services [Member] | |||||
Lease revenue: | |||||
Cost, Direct Material | 36,421 | 23,747 | 67,195 | 23,747 | |
Affiliated Entity [Member] | Service [Member] | |||||
Service revenue | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 4,082 | 6,063 | 8,301 | 12,384 | |
Affiliated Entity [Member] | Service [Member] | Asphalt Terminalling Services [Member] | |||||
Service revenue | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 3,981 | 5,981 | 8,098 | 12,302 | |
Affiliated Entity [Member] | Service [Member] | Crude Oil Pipeline Services [Member] | |||||
Service revenue | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 101 | $ 82 | $ 203 | $ 82 |
INCOME TAXES (Details)
INCOME TAXES (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Valuation Allowance [Line Items] | |
Difference in bases of property, plant and equipment | $ 245 |
Deferred tax asset, operating loss carryforwards | 18 |
Deferred tax asset | 263 |
Less: valuation allowance | 263 |
Net deferred tax asset | $ 0 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event [Member] | Aug. 05, 2019$ / shares |
Limited Partner [Member] | |
Subsequent Event [Line Items] | |
Unsolicited Buyout Offer | $ 1.35 |
Preferred Partner [Member] | |
Subsequent Event [Line Items] | |
Unsolicited Buyout Offer | $ 5.67 |