Segment Disclosures (Notes) | 3 Months Ended |
Mar. 31, 2014 |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ' |
Segment Disclosures | ' |
SEGMENT DISCLOSURES |
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Our revenues are derived from two operating segments: Crude Oil Gathering and Terminalling and Transportation. Our Crude Oil Gathering segment consists of a crude oil gathering system in the Bakken Shale/Williston Basin area of North Dakota and Montana. Our Terminalling and Transportation segment consists of: |
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• | the Northwest Products Pipeline, which includes a regulated common carrier products pipeline running from Salt Lake City, Utah to Spokane, Washington and a jet fuel pipeline to the Salt Lake City International Airport; | | | | | | |
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• | 20 crude oil and refined products terminals and storage facilities in the western and midwestern U.S.; | | | | | | |
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• | four marine terminals in California; | | | | | | |
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• | a rail-car unloading facility in Washington; | | | | | | |
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• | a petroleum coke handling and storage facility in Los Angeles; and | | | | | | |
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• | other pipelines which transport products and crude oil from Tesoro’s refineries to nearby facilities in Salt Lake City and Los Angeles. | | | | | | |
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Our revenues are generated from existing third-party contracts and from commercial agreements we have entered into with Tesoro under which Tesoro pays us fees for gathering crude oil and distributing, transporting and storing crude oil and refined products. We do not have any foreign operations. |
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Our operating segments are strategic business units that offer different services in different geographical locations. We evaluate the performance of each segment based on its respective operating income. Certain general and administrative expenses and interest and financing costs are excluded from segment operating income as they are not directly attributable to a specific operating segment. Identifiable assets are those used by the segment, whereas other assets are principally cash, deposits and other assets that are not associated with a specific operating segment. |
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Capital expenditures by operating segment were as follows (in thousands): |
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| Three Months Ended March 31, |
| 2014 | | 2013 |
Capital Expenditures | | | |
Crude Oil Gathering | $ | 17,655 | | | $ | 3,945 | |
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Terminalling and Transportation | 8,829 | | | 6,291 | |
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Total Capital Expenditures | $ | 26,484 | | | $ | 10,236 | |
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Identifiable assets by operating segment were as follows (in thousands): |
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Identifiable Assets | March 31, 2014 | | December 31, 2013 |
Crude Oil Gathering | $ | 173,993 | | | $ | 154,583 | |
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Terminalling and Transportation | 1,292,336 | | | 1,298,073 | |
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Other | 69,857 | | | 49,656 | |
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Total Identifiable Assets | $ | 1,536,186 | | | $ | 1,502,312 | |
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Segment information is as follows (in thousands): |
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| Three Months Ended March 31, |
| 2014 | | 2013 |
REVENUES | | | |
Crude Oil Gathering: | | | |
Affiliate | $ | 23,251 | | | $ | 21,377 | |
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Third-party | 1,373 | | | 314 | |
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Total Crude Oil Gathering | 24,624 | | | 21,691 | |
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Terminalling and Transportation: | | | |
Affiliate | 86,329 | | | 26,515 | |
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Third-party | 14,096 | | | 3,416 | |
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Total Terminalling and Transportation | 100,425 | | | 29,931 | |
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Total Segment Revenues | $ | 125,049 | | | $ | 51,622 | |
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OPERATING AND MAINTENANCE EXPENSES | | | |
Crude Oil Gathering | $ | 12,072 | | | $ | 12,360 | |
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Terminalling and Transportation | 33,026 | | | 7,129 | |
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Total Segment Operating and Maintenance Expenses | $ | 45,098 | | | $ | 19,489 | |
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IMBALANCE SETTLEMENT GAINS | | | |
Crude Oil Gathering | $ | (1,137 | ) | | $ | (1,396 | ) |
Terminalling and Transportation | (1,280 | ) | | (1,028 | ) |
Total Segment Imbalance Settlement Gains | $ | (2,417 | ) | | $ | (2,424 | ) |
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GENERAL AND ADMINISTRATIVE EXPENSES | | | |
Crude Oil Gathering | $ | 1,652 | | | $ | 694 | |
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Terminalling and Transportation | 4,515 | | | 1,042 | |
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Total Segment General and Administrative Expenses | $ | 6,167 | | | $ | 1,736 | |
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DEPRECIATION AND AMORTIZATION EXPENSES | | | |
Crude Oil Gathering | $ | 1,023 | | | $ | 1,006 | |
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Terminalling and Transportation | 14,502 | | | 3,075 | |
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Total Segment Depreciation and Amortization Expenses | $ | 15,525 | | | $ | 4,081 | |
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LOSS (GAIN) ON ASSET DISPOSALS AND IMPAIRMENTS | | | |
Crude Oil Gathering | $ | — | | | $ | — | |
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Terminalling and Transportation | (4,748 | ) | | 164 | |
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Total Segment Loss (Gain) on Asset Disposals and Impairments | $ | (4,748 | ) | | $ | 164 | |
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OPERATING INCOME | | | |
Crude Oil Gathering | $ | 11,014 | | | $ | 9,027 | |
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Terminalling and Transportation | 54,410 | | | 19,549 | |
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Total Segment Operating Income | 65,424 | | | 28,576 | |
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Unallocated general and administrative expenses | (3,179 | ) | | (4,317 | ) |
Interest and financing costs, net | (17,747 | ) | | (5,604 | ) |
Interest income | — | | | 23 | |
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NET INCOME | $ | 44,498 | | | $ | 18,678 | |
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