Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 01, 2014 | Jun. 28, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'PetroLogistics LP | ' | ' |
Entity Central Index Key | '0001523733 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $465,507,000 |
Entity Common Stock, Shares Outstanding | ' | 139,212,737 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $25,424 | $31,434 |
Accounts receivable | 75,322 | 53,578 |
Accounts receivable, related parties | 109 | 31,893 |
Product inventory and spare parts | 20,061 | 10,129 |
Prepaid expenses and other current assets | 2,642 | 41,038 |
Derivative assets | 0 | 2,386 |
Total current assets | 123,558 | 170,458 |
Property, plant, and equipment, net | 612,448 | 595,271 |
Intangible asset, net | 21,901 | 22,467 |
Deferred financing costs and other assets | 12,038 | 9,883 |
Total assets | 769,945 | 798,079 |
Current liabilities: | ' | ' |
Accounts payable | 34,576 | 42,211 |
Accounts payable, related parties | 134 | 250 |
Accrued liabilities | 24,168 | 14,730 |
Deferred revenue | 9,960 | 2,469 |
Derivative liabilities | 0 | 65,439 |
Bank debt, current | 0 | 3,500 |
Total current liabilities | 68,838 | 128,599 |
Long-term debt | 365,000 | 337,794 |
Asset retirement obligation | 1,376 | 1,274 |
Deferred income taxes | 1,680 | 543 |
Total liabilities | 436,894 | 468,210 |
Commitments and contingencies | ' | ' |
Partners' capital (139,212,737 and 139,000,000 common units issued and outstanding at December 31, 2013 and 2013, respectively) | 333,051 | 329,869 |
Total liabilities and partners' capital | $769,945 | $798,079 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED BALANCE SHEETS | ' | ' |
Common units, issued (in units) | 139,212,737 | 139,000,000 |
Common units, outstanding (in units) | 139,212,737 | 139,000,000 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ' | ' | ' | ||
Sales | $757,488 | $750,653 | $614,927 | ||
Cost of sales | 513,232 | 528,613 | 496,809 | ||
Gross profit | 244,256 | 222,040 | 118,118 | ||
General and administrative expense | 19,720 | 66,209 | 73,365 | ||
Development expense | 1,917 | 11,637 | 0 | ||
Management fee | 0 | 667 | 2,000 | ||
(Gain) loss on derivatives, net | -1,700 | 166,281 | 1,667 | ||
Operating income (loss) | 224,319 | -22,754 | 41,086 | ||
Interest expense, net | -26,351 | -26,156 | -17,853 | ||
Loss on early extinguishment of debt | -20,446 | -7,018 | 0 | ||
Other income | 2 | 7 | 63 | ||
Income (loss) before income tax expense | 177,524 | -55,921 | 23,296 | ||
Income tax expense | -2,481 | -753 | -1,372 | ||
Net income (loss) | 175,043 | -56,674 | 21,924 | ||
Comprehensive income (loss) | 175,043 | -56,674 | 21,924 | ||
Net income subsequent to initial public offering | $175,043 | $54,218 | ' | ||
Net income per common unit - basic and diluted (in dollars per unit) | $1.25 | [1] | $0.39 | [1] | ' |
Weighted average number of common units outstanding - basic and diluted (in units) | 139,101,921 | 139,000,000 | ' | ||
[1] | Represents net income per common unit since the closing of the Partnershipbs initial public offering on May 9, 2012. See Note 3 to the consolidated financial statements. |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (USD $) | Net Predecessor Equity [Member] | General Partner [Member] | Limited Partners Common Unitholders [Member] | Total |
In Thousands, unless otherwise specified | ||||
Balance at Dec. 31, 2010 | $456,135 | $0 | $0 | $456,135 |
Increase (Decrease) in Partners' Capital | ' | ' | ' | ' |
Member contributions | 2,341 | 0 | 0 | 2,341 |
Distribution to Sponsors | ' | ' | ' | 0 |
Equity-based compensation | 64,383 | 0 | 0 | 64,383 |
Net income (loss) | 21,924 | 0 | 0 | 21,924 |
Initial public offering proceeds, net of underwriter discount | ' | ' | ' | 0 |
Contribution resulting from cancellation of Sponsor administrative agreement | ' | ' | ' | 0 |
Balance at Dec. 31, 2011 | 544,783 | 0 | 0 | 544,783 |
Increase (Decrease) in Partners' Capital | ' | ' | ' | ' |
Distribution to Sponsors | -250,000 | 0 | 0 | -250,000 |
Equity-based compensation | 11,480 | 0 | 0 | 11,480 |
Net income (loss) | -110,892 | 0 | 0 | -110,892 |
Balance at May. 08, 2012 | ' | ' | ' | ' |
Balance at May. 09, 2012 | ' | ' | ' | ' |
Increase (Decrease) in Partners' Capital | ' | ' | ' | ' |
Allocation of net Sponsors' investment to unitholders | -195,371 | 0 | 195,371 | 0 |
Equity-based compensation | 0 | 0 | 45,920 | 45,920 |
Net income (loss) | 0 | 0 | 54,218 | 54,218 |
Initial public offering proceeds, net of underwriter discount | 0 | 0 | 23,970 | 23,970 |
Offering costs | 0 | 0 | -5,540 | -5,540 |
Contribution resulting from cancellation of Sponsor administrative agreement | 0 | 0 | 2,667 | 2,667 |
Cash distributions | 0 | 0 | -65,603 | -65,603 |
PL Manufacturing LLC and PL Manufacturing members contributions for realized losses on derivatives | 0 | 0 | 78,866 | 78,866 |
Balance at Dec. 31, 2012 | 0 | 0 | 329,869 | 329,869 |
Balance at Dec. 31, 2012 | ' | ' | ' | ' |
Increase (Decrease) in Partners' Capital | ' | ' | ' | ' |
Distribution to Sponsors | ' | ' | ' | 0 |
Equity-based compensation | 0 | 0 | 4,491 | 4,491 |
Net income (loss) | 0 | 0 | 175,043 | 175,043 |
Initial public offering proceeds, net of underwriter discount | ' | ' | ' | 0 |
Contribution resulting from cancellation of Sponsor administrative agreement | ' | ' | ' | 0 |
Cash distributions | 0 | 0 | -237,704 | -237,704 |
PL Manufacturing LLC and PL Manufacturing members contributions for realized losses on derivatives | 0 | 0 | 61,352 | 61,352 |
Balance at Dec. 31, 2013 | $0 | $0 | $333,051 | $333,051 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating activities | ' | ' | ' |
Net income (loss) | $175,043 | ($56,674) | $21,924 |
Adjustments to reconcile net income (loss) to net cash provided by operations: | ' | ' | ' |
Equity-based compensation expense | 4,491 | 57,400 | 64,383 |
Amortization of deferred financing costs and discount | 2,449 | 3,459 | 3,118 |
Loss on early extinguishment of debt | 13,498 | 7,018 | 0 |
Depreciation and amortization expense | 41,558 | 33,775 | 37,441 |
Accretion expense | 102 | 94 | 88 |
Unrealized (gain) loss on derivatives | -63,053 | 61,386 | 1,667 |
Deferred income tax expense (benefit) | 1,137 | -289 | 832 |
Changes in working capital: | ' | ' | ' |
Accounts receivable | -21,744 | -11,204 | -27,998 |
Accounts receivable, related parties | -98 | -11 | 0 |
Inventory | -9,932 | 10,154 | -4,240 |
Prepaid expenses and other current assets | 38,396 | -39,568 | -1,124 |
Accounts payable | -7,635 | 14,044 | 17,007 |
Accounts payable, related parties | -116 | 391 | 1,303 |
Accrued liabilities | 9,438 | 8,360 | -1,593 |
Deferred revenue | 7,491 | -2,211 | -123 |
Restricted cash | 0 | 34,922 | -28,038 |
Net cash provided by operations | 191,025 | 121,046 | 84,647 |
Investing activities | ' | ' | ' |
Capital expenditures and deferred major maintenance costs | -58,169 | -25,414 | -28,535 |
Purchase of intangibles | 0 | -12,215 | 0 |
Net cash used in investing activities | -58,169 | -37,629 | -28,535 |
Financing activities | ' | ' | ' |
Deferred financing costs | -1,201 | -13,481 | -3,182 |
Proceeds from borrowings | 75,055 | 385,725 | 143,000 |
Repayments on borrowings | -68,250 | -190,465 | -187,385 |
Capital contributions | 0 | 0 | 2,341 |
Net proceeds from initial public offering | 0 | 23,970 | 0 |
Distribution to Sponsors | 0 | -250,000 | 0 |
Cash distributions, net of contributions | -144,470 | -18,619 | 0 |
Change in restricted cash | 0 | 10,886 | -10,885 |
Net cash used in financing activities | -138,866 | -51,984 | -56,111 |
Net change in cash | -6,010 | 31,433 | 1 |
Cash and cash equivalents at beginning of period | 31,434 | 1 | 0 |
Cash and cash equivalents at end of period | 25,424 | 31,434 | 1 |
Interest paid | 21,695 | 17,567 | 14,706 |
Income taxes paid | 1,157 | 457 | 218 |
Noncash investing and financing activities: | ' | ' | ' |
Capital contributions receivable from PL Manufacturing and PL Manufacturing Members for realized losses on derivatives | 0 | 31,882 | 0 |
Contribution resulting from cancellation of Sponsor administrative agreement | 0 | 2,667 | 0 |
Noncash capital expenditures | $0 | $0 | $3,000 |
Organization_and_Nature_of_Ope
Organization and Nature of Operations | 12 Months Ended |
Dec. 31, 2013 | |
Organization and Nature of Operations [Abstract] | ' |
Organization and Nature of Operations | ' |
1. Organization and Nature of Operations | |
As used in this report, the terms “PetroLogistics LP,” “the Partnership,” “we,” “our,” “us” or like terms, refer to PetroLogistics LP. The information presented herein contains the audited combined financial results of PL Propylene LLC (PL Propylene), our predecessor for accounting purposes (the “predecessor”), for all periods presented through March 30, 2012, the date of the contribution of the predecessor’s net assets to the Partnership. The consolidated financial results for the year ended December 31, 2012, also include the results of operations of the Partnership for the period beginning March 30, 2012. The consolidated balance sheets as of December 31, 2013 and 2012, and the consolidated financial results for the year ended December 31, 2013, present solely the consolidated financial position and results of operations of the Partnership. References to “PL Manufacturing” refer to PL Manufacturing LLC, and references to the “PL Manufacturing Members” refer to the owners of 100% of the issued and outstanding equity interests in PL Manufacturing. References to our “General Partner” refer to PetroLogistics GP LLC. References to our “Sponsors” refer to Lindsay Goldberg LLC (“Lindsay Goldberg”) and York Capital Management (“York”) which collectively and indirectly own 84% of PetroLogistics GP (or “General Partner”) and own approximately 63% of our common units. | |
Organization | |
PetroLogistics LP is a Delaware limited partnership that was formed on June 9, 2011, by Propylene Holdings LLC (“Propylene Holdings”) to own PL Propylene, a wholly-owned subsidiary of Propylene Holdings. On March 30, 2012, Propylene Holdings contributed PL Propylene to PetroLogistics LP. Because this transaction was a transaction between entities under common control, the contributed assets and liabilities of PL Propylene were recorded in the consolidated financial statements at PL Propylene’s historical cost. Prior to the contribution, PetroLogistics LP had no operations and nominal assets and liabilities. On March 12, 2013, we formed a wholly-owned finance subsidiary, PetroLogistics Finance Corp. (or “Finance Corp.”), for the sole purpose of being a co-issuer of a portion of the Partnership’s indebtedness, including the senior unsecured notes discussed in Note 11. The General Partner holds a non-economic interest in the Partnership. | |
Nature of Operations | |
We own and operate the only U.S. propane dehydrogenation facility (or “the facility”) producing polymer grade and chemical grade propylene from propane. Propylene is used as one of the basic building blocks for petrochemicals in a variety of end uses, including paints, coatings, building materials, clothing, automotive parts, packaging and a range of other consumer and industrial products. In addition to propylene, the facility generates commercial quantities of the following by-products during the production process: hydrogen, C4 mix stream, and C5+ stream. |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Significant Accounting Policies [Abstract] | ' | ||||||||||||||||
Significant Accounting Policies | ' | ||||||||||||||||
2. Significant Accounting Policies | |||||||||||||||||
Basis of Presentation and Principles of Consolidation | |||||||||||||||||
The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and include the accounts of the Partnership and its wholly-owned subsidiaries. All inter-company transactions and balances have been eliminated upon consolidation. | |||||||||||||||||
Summary of Significant Accounting Policies | |||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of sales and expenses during the reporting period. We review our estimates on an ongoing basis using currently available information. Changes in facts and circumstances may result in revised estimates, and actual results could differ materially from those estimates. | |||||||||||||||||
Sales | |||||||||||||||||
Sales of propylene and by-products are recorded when persuasive evidence of an arrangement exists, goods have been delivered, consideration to be received is fixed and determinable, and collectability is reasonably assured. Cash received in advance of product delivery to the customer is reported as deferred revenue. Upon delivery to the customer and satisfaction of the aforementioned criteria for sales recognition, the deferred revenue is reported as a sale. Sales are presented net of discounts and allowances. By-product sales are reported together with propylene sales. Transportation costs billed to customers are also recorded as a component of sales. | |||||||||||||||||
Inventory purchases and sales transactions with the same counterparty are combined for accounting purposes if they were entered into in contemplation of each other. Inventory purchases and sales under buy/sell transactions are treated as inventory exchanges in our statements of comprehensive income (loss). This treatment of buy/sell transactions eliminates sales and purchases in equal amounts in our statements of comprehensive income (loss). Accordingly, no gain or loss is recognized on the transaction at the time, with any difference in value between the two transactions recorded as an additional cost of inventory. | |||||||||||||||||
Cost of Sales | |||||||||||||||||
Cost of sales represents the costs of propylene and by-products sold. These costs include the cost of propane, fuel and utilities used in the propylene production process, such as natural gas, nitrogen and electricity, as well as direct operating expenses along with insurance and property tax expenses associated with the facility. Direct operating expenses include all direct and indirect labor at the facility as well as fixed and variable overhead expenses. Depreciation, amortization and accretion expenses, exclusive of the amortization of deferred financing fees, are also included within cost of sales. | |||||||||||||||||
During certain periods in 2013, 2012 and 2011, the facility operated below normal capacity. Accordingly, we recorded charges to cost of sales to reflect unabsorbed fixed overhead costs. | |||||||||||||||||
Development Expense | |||||||||||||||||
Development expense includes preliminary engineering and design work and other expenses for projects which do not qualify for capitalization under GAAP. | |||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||
We consider all short-term instruments with an original maturity of three months or less to be cash equivalents. We maintain cash in bank deposit accounts that, at times, may exceed federally insured limits. We have not experienced any losses in such accounts, and we believe we are not exposed to any significant credit risk on cash and cash equivalents. | |||||||||||||||||
Restricted Cash | |||||||||||||||||
During 2011, following the conversion of our construction loan to a term loan that was scheduled to mature in 2014, we funded $10.9 million into a debt service reserve to serve as collateral for our debt. This cash outflow is classified as a financing cash flow in the 2011 consolidated statement of cash flows. Also during 2011, we funded $3.0 million into a major maintenance reserve, which was to be used to fund future major maintenance expenditures. This amount has been included in operating activities in the 2011 consolidated statement of cash flows. In connection with the refinancing of our construction loan into a term loan in 2012 (see Note 11), restrictions on our cash balances were lifted. The decrease in the debt service reserve of $10.9 million is classified as a financing cash flow, and the remaining restricted cash of $34.9 million is classified as an operating cash flow in the 2012 consolidated statement of cash flows. | |||||||||||||||||
Accounts Receivable | |||||||||||||||||
We extend credit to customers in accordance with normal industry standards and terms. We review accounts receivable monthly and establish an allowance for doubtful accounts based on known factors surrounding the credit risk of specific customers, historical trends and other information. Accounts receivable are not collateralized, and we may charge interest on receivables should they become past due. No allowance for doubtful accounts was considered necessary at December 31, 2013 and 2012, and we have not recorded any interest income related to past due receivables. | |||||||||||||||||
Inventory | |||||||||||||||||
Inventory is carried at the lower of cost or market, with cost determined using the weighted-average method. | |||||||||||||||||
Prepaid Expenses and Other Current Assets | |||||||||||||||||
As of December 31, 2013, prepaid expenses and other current assets consists primarily of $2.5 million for premiums paid for insurance which are amortized over the policy periods. As of December 31, 2012, prepaid expenses and other current assets consists primarily of a $40.0 million cash deposit we made to a counterparty as collateral for our commodity derivative contracts (the “propane swaps”). The cash was held by the counterparty and returned to us in 2013 following the termination of the propane swaps. | |||||||||||||||||
Derivative Instruments | |||||||||||||||||
Commencing October 2011 and through March 2012, we entered into commodity derivative contracts with settlement dates in 2012 and 2013 to manage our exposure to commodity price risk with respect to propane, our sole feedstock. The propane swaps were designed to mitigate the risk associated with unfavorable market movements in the price of energy commodities. Our propane swaps were intended to act as a hedging (offset) mechanism against the volatility of energy commodity prices by allowing us to transfer some of the price risk to counterparties who were able and willing to bear it. | |||||||||||||||||
Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC” or “Codification”) Topic 815, Derivatives and Hedging (“ASC Topic 815”), addresses the accounting for derivative contracts. We entered into our commodity derivative contracts to economically hedge an exposure through a relationship that does not qualify for hedge accounting under ASC Topic 815. Our derivative contracts are recorded as derivative assets and liabilities, as applicable, at fair value on the balance sheet, and the associated unrealized gains and losses are recorded as current expense or income in the statement of comprehensive income (loss). Unrealized gains or losses on commodity derivative contracts represent the non-cash change in the fair value of these derivative instruments and do not impact operating cash flows on the statement of cash flows. Until settlement occurred, this change in fair value resulted in non-cash gains or losses being reported in our operating results as gain or loss on derivatives. | |||||||||||||||||
In addition to the propane swaps, we entered into an interest rate protection agreement in July 2012 for a nominal amount whereby we capped the three month LIBOR rate at 2.0% for up to $115.5 million on our term loan. The agreement terminates March 27, 2014. | |||||||||||||||||
Omnibus Agreement | |||||||||||||||||
On May 9, 2012, we, the General Partner, Propylene Holdings, PL Propylene and PL Manufacturing LLC, entered into an omnibus agreement (the “omnibus agreement”). Pursuant to the omnibus agreement and a related pledge agreement (the “pledge agreement”), we allocated all of our benefits and obligations under the propane swaps to PL Manufacturing and the PL Manufacturing Members. | |||||||||||||||||
On April 19, 2013, we, PL Manufacturing and the counterparty to the propane swaps agreed to terminate the propane swaps remaining as of May 1, 2013. Under the omnibus agreement and the pledge agreement, any amounts that we were required to pay under the propane swaps were contributed to us as a capital contribution by PL Manufacturing and the PL Manufacturing Members. | |||||||||||||||||
While we did not bear any of the costs nor receive any of the benefits of the propane swaps upon entering the omnibus agreement, we remained a party to the propane swaps, and were obligated to make payments to the propane swap counterparties as they come due and to post any collateral as required, under the terms of the propane swap agreement. As a result, we continued to record the fair value of the propane swaps on our balance sheet with the related gains or losses reflected in our statement of comprehensive income (loss). To the extent that the Partnership made payments under the propane swaps, PL Manufacturing and the PL Manufacturing Members were responsible for making quarterly capital contributions in an amount equal to the sum of all payments we made under such propane swaps during the applicable fiscal quarter or that we owed at the end of the quarter. During the years ended December 31, 2013 and 2012, PL Manufacturing and the PL Manufacturing Members paid approximately $93.2 million and $47.0 million, respectively, to us as reimbursement for realized losses on the propane swaps with the 2012 period pro-rated from May 9, 2012, the closing date of our initial public offering (the “IPO”), through December 31, 2012. See Note 3 regarding the IPO. | |||||||||||||||||
In connection with the termination of the propane swaps, we paid a cancellation payment of $34.4 million in May 2013, of which $5.4 million was reimbursed through a reduction in the distribution paid to PL Manufacturing and the PL Manufacturing Members in May 2013 in accordance with the terms of the omnibus agreement. The remaining $29.0 million was settled with cash held as collateral by the propane swap counterparty and was immediately reimbursed by PL Manufacturing and the PL Manufacturing Members. During the years ended December 31, 2013 and 2012, we recorded capital contributions of approximately $61.4 million and $78.9 million, respectively, for the reimbursement of the realized losses on the propane swaps and the reimbursement of the termination payment by PL Manufacturing and the PL Manufacturing Members. We received the final reimbursement for realized losses from PL Manufacturing and the PL Manufacturing Members on August 14, 2013, at which time the omnibus agreement terminated in accordance with its terms. | |||||||||||||||||
Property, Plant, and Equipment | |||||||||||||||||
Property, plant and equipment are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Upon retirement or sale, we remove the cost of the asset and the related accumulated depreciation and reflect any resulting gain or loss in the statements of comprehensive income (loss). | |||||||||||||||||
Repair and maintenance expenditures incurred in order to maintain the day-to-day operation of our existing assets are charged to expense as incurred. Costs associated with acquisitions and improvements that expand existing capacity or extend useful life, including related interest costs, are capitalized. | |||||||||||||||||
Deferred Major Maintenance Costs | |||||||||||||||||
Planned major maintenance projects, also referred to as turnarounds, are periodically performed to help ensure the long-term reliability and safety of integrated plant machinery at our continuous process production facility. During the planned major maintenance project the primary activity is the replacement of the reactor catalyst as well as other major maintenance activities, some of which extend the useful life of plant machinery or increase output and/or efficiency of the facility. Our planned major maintenance project occurs approximately every three years and requires a multi-week shutdown of plant operations. Specific procedures performed during the turnaround include the disassembly, inspection and replacement or overhaul of plant machinery (pressure vessels, piping, heat exchangers, etc.) and rotating equipment (compressors, pumps, turbines, etc.), equipment recalibration and internal equipment efficiency assessments. | |||||||||||||||||
Preceding a turnaround, facilities experience decreased efficiency in resource conversion to finished products. Replacement or overhaul of equipment and items such as compressors, turbines, pumps, motors, valves, piping and other parts that have an estimated useful life of at least three years, the internal assessment of production equipment, replacement of aged catalysts, and new installation/recalibration of measurement and control devices result in increased production output and/or improved plant efficiency after the turnaround. Turnaround activities are betterments that meet at least one of the following criteria: 1) extend the equipment useful life, or 2) increase the output and/or efficiency of the equipment. As a result, we follow the deferral method of accounting for major maintenance costs; and thus, they are capitalized and amortized over the period benefited, which is generally the three-year period until the next turnaround. Deferred major maintenance costs are reported under Property, plant and equipment, net, in the consolidated balance sheet at December 31, 2013. We expense repair and maintenance activities in the period performed. | |||||||||||||||||
Intangible Assets | |||||||||||||||||
Intangible assets include the technology license we acquired related to the propane dehydrogenation process, which is essential to the design, construction and operation of the facility, as well as emission credits. The technology license is being amortized on a straight-line basis over its estimated useful life of 25 years. The emission credits are an indefinite life intangible which is subject to an annual evaluation for impairment. | |||||||||||||||||
Deferred Financing Costs and Other Assets | |||||||||||||||||
Deferred financing costs and other assets as of December 31, 2013 and 2012, consist primarily of deferred financing costs incurred in connection with the closings of our credit facilities in March 2013 and March 2012, respectively. The costs associated with our credit facilities are being amortized using the effective interest method and are classified as interest expense. During 2013 we completed the refinancing of our term loan, and the remaining unamortized costs associated with the term loan were written off at that time resulting in a loss on early extinguishment of debt of $20.4 million. During 2012 we successfully completed the refinancing of our construction loan into a term loan, and the remaining unamortized costs associated with the construction loan were written off at that time resulting in a loss on early extinguishment of debt totaling $7.0 million. | |||||||||||||||||
Impairment of Long-Lived Assets | |||||||||||||||||
Long-lived assets used in operations are assessed for possible impairment when events or changes in circumstances indicate a potential significant deterioration in future cash flows projected to be generated by the assets. Individual assets are grouped for impairment purposes at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of other groups of assets, which is generally at the facility level, as we produce one principal product. | |||||||||||||||||
If, upon review, the sum of the projected undiscounted cash flows is less than the carrying value of the asset group, the carrying value is written down to the estimated fair value. The fair values of impaired assets are usually determined based on the present value of projected future cash flows using discount rates commensurate with the risks involved in the asset group, as quoted market prices in active markets are generally not available. The expected future cash flows used for impairment reviews and related fair value calculations are based on projected production volumes, sales volumes, prices and costs, taking into consideration available internal and external information at the date of review. | |||||||||||||||||
Should an impairment of assets arise, we would be required to record a charge to operations that could be material to the period reported. We have not recorded any impairment charges in any period. | |||||||||||||||||
Asset Retirement Obligation | |||||||||||||||||
An asset and a liability are recorded at fair value when there is a legal obligation associated with the retirement of a long-lived asset and the amount can be reasonably estimated. When the liability is initially recorded, this cost is capitalized by increasing the carrying amount of the related long-lived asset. Over time, the liability is increased for changes in present value, and the capitalized cost is depreciated over the estimated useful life of the related asset. | |||||||||||||||||
Where we can reasonably estimate the asset retirement obligation, we accrue a liability based on an estimate of the timing and amount of settlement. In estimating our asset retirement obligations, we utilize several assumptions based on when the liabilities were recorded, including an inflation rate and a credit-adjusted discount rate. We record changes in these estimates based on changes in the expected amount and timing of payments to settle our obligations. | |||||||||||||||||
Environmental Costs | |||||||||||||||||
Environmental expenditures are expensed or capitalized as appropriate, depending on future economic benefit. Expenditures that relate to an existing condition caused by past operations and that do not have future economic benefit are expensed. Liabilities for expenditures are recorded on an undiscounted basis unless the amount and timing of cash payments for the liability are fixed or determinable, in which case they are recorded on a discounted basis. Expenditures that create future benefits or contribute to future revenue generation are capitalized. | |||||||||||||||||
Income Taxes | |||||||||||||||||
We are a partnership and are treated as a partnership for federal tax purposes whereby the impact of our operations is subject to tax at the partner level. Therefore, no federal income taxes are recognized in the consolidated financial statements. The aggregate difference in the basis of our net assets for financial and tax reporting purposes cannot be readily determined because information regarding each partner’s tax attributes is not available to us. | |||||||||||||||||
As an entity operating in the State of Texas, we are subject to the Texas Margin Tax, which is an income tax. We follow the liability method of accounting for these income taxes. Deferred income tax assets and liabilities are recognized for temporary differences between the assets and liabilities for financial reporting and tax purposes. | |||||||||||||||||
We recognize the tax effects of any uncertain tax positions we may adopt if the position taken by us is more likely than not sustainable based on its technical merits. If a tax position meets such criteria, the tax effect that would be recognized by us would be the largest amount of benefit with more than a 50% chance of being realized. See Note 12 for additional information regarding our income taxes. | |||||||||||||||||
Equity-Based Compensation | |||||||||||||||||
We recognize compensation expense related to equity-based awards granted to employees based on the estimated fair value of the awards on the date of grant, net of estimated forfeitures (see Notes 13 and 14). The grant date fair value of the equity-based awards is generally recognized on a straight-line basis over the requisite service period, which is generally the vesting period of the respective awards. | |||||||||||||||||
We also account for equity-based awards granted to non-employees based on the estimated fair value of the awards. The measurement of equity-based compensation for awards granted to non-employees is subject to periodic adjustment as the awards vest, and the resulting change in value is recognized in the statement of comprehensive income (loss) during the period the related services are rendered. | |||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
We consider cash and cash equivalents, accounts receivable, accounts payable, accounts receivable-related parties, accounts payable-related parties, and accrued liabilities to be financial instruments in which the carrying amounts represent fair value because of the short-term nature of the accounts. | |||||||||||||||||
Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in a principal or most advantageous market. Fair value is a market-based measurement that is determined based on inputs, which refer broadly to assumptions that market participants use in pricing assets or liabilities. These inputs can be readily observable, market corroborated or generally unobservable inputs. The Codification establishes a hierarchical disclosure framework that ranks the quality and reliability of information used to determine fair values. The hierarchy is associated with the level of pricing observability utilized in measuring fair value and defines three levels of inputs to the fair value measurement process—quoted prices are the most reliable valuation inputs, whereas model values that include inputs based on unobservable data are the least reliable. Each fair value measurement must be assigned to a level corresponding to the lowest level input that is significant to the fair value measurement in its entirety. | |||||||||||||||||
Assets and liabilities that are carried at fair value are classified and disclosed in one of the following three categories: | |||||||||||||||||
Level 1 – Quoted market prices in active markets for identical assets and liabilities. | |||||||||||||||||
Level 2 – Observable market-based inputs or unobservable inputs that are corroborated by market data. | |||||||||||||||||
Level 3 – Unobservable inputs that are not corroborated by market data. | |||||||||||||||||
The Partnership makes certain assumptions it believes that market participants would use in pricing assets or liabilities, including assumptions about risk, and the risks inherent in the inputs to valuation techniques. Credit risk of the Partnership and its counterparties is incorporated in the valuation of assets and liabilities. The Partnership believes it uses valuation techniques that maximize the use of observable market-based inputs and minimize the use of unobservable inputs. | |||||||||||||||||
The following table presents the financial instruments that require fair value disclosure as of December 31, 2013, by level within the hierarchy: | |||||||||||||||||
Fair Value | |||||||||||||||||
(in thousands) | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Carrying Value | ||||||||||||||
Financial liabilities | |||||||||||||||||
Senior Notes | $ | — | $ | 367,401 | $ | — | $ | 365,000 | |||||||||
The following table presents the financial instruments that require fair value disclosure as of December 31, 2012: | |||||||||||||||||
Fair Value | |||||||||||||||||
(in thousands) | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Carrying Value | ||||||||||||||
Financial assets | |||||||||||||||||
Propane swaps | $ | — | $ | 2,386 | $ | — | $ | 2,386 | |||||||||
Financial liabilities | |||||||||||||||||
Variable rate debt | $ | — | $ | 345,636 | $ | — | $ | 341,294 | |||||||||
Propane swaps | $ | — | $ | 65,439 | $ | — | $ | 65,439 | |||||||||
The senior notes and variable rate debt are deemed to be Level 2 financial instruments because they are based on observable market data. At December 31, 2013 and 2012, the fair values were determined based on active trades and market corroborated data. | |||||||||||||||||
The valuation assumptions utilized to measure the fair value of our propane swaps were observable inputs based on market data obtained from independent sources and are considered Level 2 inputs. To determine the fair value of the propane swaps, we utilized quoted prices for similar assets, liabilities and market-corroborated inputs. See Note 7 for discussion regarding our propane swaps. | |||||||||||||||||
There are no financial instruments that are split across the levels, and there have been no financial instruments that transferred between the levels during the years ended December 31, 2013 and 2012. | |||||||||||||||||
Segment Reporting | |||||||||||||||||
We operate in one segment for the production and sale of propylene and related by-products. All of our operations are located in Houston, Texas. | |||||||||||||||||
Net Income (Loss) Per Common Unit | |||||||||||||||||
Net income (loss) per common unit for a given period is based on the distributions that are made to the unitholders plus an allocation of undistributed net income (loss) based on provisions of the partnership agreement, divided by the weighted average number of common units outstanding. The two-class method dictates that net income (loss) for a period be reduced by the amount of distributions and that any residual amount representing undistributed net income (loss) be allocated to common unitholders and other participating unitholders to the extent that each unit may share in net income (loss) as if all of the net income (loss) for the period had been distributed in accordance with the partnership agreement. Unit-based awards granted under the PetroLogistics Long-Term Incentive Plan (the “Long-Term Incentive Plan”) are eligible for Distribution Equivalent Rights (“DERs”). To the extent that non-forfeitable DERs are awarded, the underlying nonvested unit-based awards are considered participating securities for purposes of determining net income (loss) per unit. Undistributed income (loss) is allocated to participating securities based on the proportional relationship of the weighted average number of common units and unit-based awards outstanding. Undistributed losses (including those resulting from distributions in excess of net income) are allocated to common units based on provisions of the partnership agreement. Undistributed losses are not allocated to nonvested unit-based awards as they do not participate in net losses. Distributions declared and paid in the period are treated as distributed earnings in the computation of earnings per common unit even though cash distributions are not necessarily derived from current or prior period earnings. | |||||||||||||||||
The General Partner does not have an economic interest in the Partnership and, therefore, does not participate in the Partnership’s net income (loss). Prior to the IPO, our predecessor was wholly-owned by Propylene Holdings. Accordingly, net income (loss) per common unit is not presented for periods prior to the IPO. | |||||||||||||||||
The following table provides a reconciliation of net income (loss) and the allocation of net income (loss) to the common units and the unit-based awards for purposes of computing net income (loss) per unit for the year ended December 31, 2013, (in thousands, except units and per unit data): | |||||||||||||||||
Limited Partner Units | |||||||||||||||||
Total | Common Units | Long- | |||||||||||||||
Term Incentive Plan | |||||||||||||||||
Unit-Based Awards | |||||||||||||||||
Net income | $ | 175,043 | |||||||||||||||
Less: Distributions to unitholders | 237,704 | $ | 236,443 | $ | 1,261 | ||||||||||||
Assumed allocation of undistributed net loss | (62,661 | ) | $ | (62,661 | ) | $ | - | ||||||||||
Weighted average units outstanding | 139,101,921 | 721,600 | |||||||||||||||
Net income (loss) per unit: | |||||||||||||||||
Distributed earnings | $ | 1.7 | $ | 1.75 | |||||||||||||
Undistributed net loss allocation | (0.45 | ) | - | ||||||||||||||
Net income per common unit - basic and diluted | $ | 1.25 | $ | 1.75 | |||||||||||||
The following table provides a reconciliation of net income (loss) and the allocation of net income (loss) to the common units and the restricted units for purposes of computing net income (loss) per unit for the period from May 9, 2012, the closing date of the IPO, through December 31, 2012, (in thousands, except units and per unit data): | |||||||||||||||||
Total | Limited Partner Units Common Units | Long-Term Incentive Plan Unit-Based Awards | |||||||||||||||
Net income | $ | 54,218 | |||||||||||||||
Less: Distributions to unitholders | 65,603 | $ | 65,330 | $ | 273 | ||||||||||||
Assumed allocation of undistributed net loss | $ | (11,385 | ) | $ | (11,385 | ) | $ | — | |||||||||
Weighted average units outstanding | 139,000,000 | 629,895 | |||||||||||||||
Net income (loss) per unit: | |||||||||||||||||
Distributed earnings | $ | 0.47 | $ | 0.43 | |||||||||||||
Undistributed net loss allocation | (0.08 | ) | — | ||||||||||||||
Net income per common unit - basic and diluted | $ | 0.39 | $ | 0.43 | |||||||||||||
Recently Issued Accounting Standards | |||||||||||||||||
During the first quarter of 2013, we adopted Accounting Standards Update (“ASU”) ASU 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities, which requires entities to disclose both gross and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting agreement and ASU 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Asset and Liabilities, which clarifies the scope of the offsetting disclosures of ASU 2011-11. The objective of the disclosure requirement is to facilitate comparison between those entities that prepare their financial statements on the basis of U.S. GAAP and those entities that prepare their financial statements on the basis of International Financial Reporting Standards. The adoption of this standard did not have a material impact on our consolidated financial statements. | |||||||||||||||||
In February 2013, the FASB issued authoritative guidance through ASU 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, surrounding the presentation of items reclassified from accumulated other comprehensive income (loss) to net income. This guidance requires entities to disclose, either in the notes to the consolidated financial statements or parenthetically on the face of the statement that reports comprehensive income (loss), items reclassified out of accumulated other comprehensive income (loss) and into net earnings in their entirety and the effect of the reclassification on each affected statement of operations line item. In addition, for accumulated other comprehensive income (loss) reclassification items that are not reclassified in their entirety into net earnings, a cross reference to other required accounting standard disclosures is required. We adopted this guidance in the first quarter of 2013. The adoption of this guidance did not have an impact on our statement of comprehensive income (loss) or on our disclosures as we have historically had no other comprehensive income (loss) items. | |||||||||||||||||
Reclassifications | |||||||||||||||||
Certain amounts for prior periods have been reclassified in order to conform to the current period presentation. |
Initial_Public_Offering
Initial Public Offering | 12 Months Ended |
Dec. 31, 2013 | |
Initial Public Offering [Abstract] | ' |
Initial Public Offering | ' |
3. Initial Public Offering | |
First Amended and Restated Agreement of Limited Partnership of PetroLogistics LP | |
On May 3, 2012, in connection with the completion of the IPO, our General Partner amended and restated our partnership agreement and executed the First Amended and Restated Agreement of Limited Partnership of PetroLogistics LP (the “partnership agreement”), which governs the rights of our partners. Among others, revisions included the recapitalization of our limited partner interests into common units in connection with the IPO and provisions regarding allocations and distributions. | |
On May 9, 2012, we completed our IPO. Our common units are traded on the NYSE under the symbol “PDH.” We received net proceeds of approximately $24.0 million from the sale of the common units, after deducting underwriting discounts. |
Inventory
Inventory | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory [Abstract] | ' | ||||||||
Inventory | ' | ||||||||
4. Inventory | |||||||||
Inventory consists of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Product inventory | |||||||||
Raw materials | $ | 8,356 | $ | 216 | |||||
Work in progress | 1,615 | 1,127 | |||||||
Finished product | 3,014 | 3,103 | |||||||
Total product inventory | 12,985 | 4,446 | |||||||
Maintenance spares | 7,076 | 5,683 | |||||||
Total inventory | $ | 20,061 | $ | 10,129 | |||||
Raw materials inventory consists primarily of propane feedstock. Work in progress inventory represents pipeline and plant fill inventory, which is a combination of propane and propylene. Finished goods inventory includes inventory stored at third party facilities pursuant to our propylene exchange and storage contracts. The exchange and storage contracts provide for storage capacity of 95 million pounds. Legal title and custody, control and risk of loss of finished goods inventory remains with us until the finished goods inventory is delivered to the customer pursuant to our propylene sales contracts. |
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||||||
Property, Plant and Equipment | ' | ||||||||||||
5. Property, Plant and Equipment | |||||||||||||
Property, plant, and equipment consist of the following at December 31 (in thousands): | |||||||||||||
Lives in | 2013 | 2012 | |||||||||||
Years | |||||||||||||
Pipelines and plant | 25 | $ | 44,389 | $ | 42,801 | ||||||||
Machinery and equipment | 5 to 25 | 558,420 | 550,433 | ||||||||||
Catalyst | 3 to 25 | 31,506 | 21,889 | ||||||||||
Air permits | 25 | 26,415 | 26,415 | ||||||||||
Deferred major maintenance | 3 | 15,768 | 300 | ||||||||||
Land | N/A | 4,828 | 4,597 | ||||||||||
Other | 5 to 25 | 7,674 | 8,641 | ||||||||||
689,000 | 655,076 | ||||||||||||
Less accumulated depreciation and amortization | (96,354 | ) | (72,611 | ) | |||||||||
592,646 | 582,465 | ||||||||||||
Construction in process | N/A | 19,802 | 12,806 | ||||||||||
Property, plant, and equipment, net | $ | 612,448 | $ | 595,271 | |||||||||
Depreciation and amortization expense on property, plant and equipment of $41.0 million, $33.3 million, and $37.0 million are included in cost of sales in the statements of comprehensive income (loss) for 2013, 2012 and 2011, respectively. Of our total catalyst cost, 93% has a life of three to six years, while the remaining 7%, representing one specific catalyst, has a life equal to the estimated life of the plant of 25 years. | |||||||||||||
For the years ended December 31, 2013, 2012, and 2011, we did not capitalize interest. |
Intangible_Assets
Intangible Assets | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Intangible Assets [Abstract] | ' | ||||||||||||||||||||||||
Intangible Assets | ' | ||||||||||||||||||||||||
6. Intangible Assets | |||||||||||||||||||||||||
The Company’s intangible assets at December 31 consist of the following (in thousands): | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Gross | Net | Gross | Net | ||||||||||||||||||||||
Carrying | Accumulated | Carrying | Carrying | Accumulated | Carrying | ||||||||||||||||||||
Value | Amortization | Value | Value | Amortization | Value | ||||||||||||||||||||
Licensed technology | $ | 14,181 | $ | (1,595 | ) | $ | 12,586 | $ | 14,181 | $ | (1,029 | ) | $ | 13,152 | |||||||||||
Emission Credits | 9,315 | — | 9,315 | 9,315 | — | 9,315 | |||||||||||||||||||
Total | $ | 23,496 | $ | (1,595 | ) | $ | 21,901 | $ | 23,496 | $ | (1,029 | ) | $ | 22,467 | |||||||||||
The technology license is being amortized on a straight-line basis over its estimated useful life of 25 years. | |||||||||||||||||||||||||
Amortization expense on our licensed technology for 2013, 2012, and 2011, was $0.6 million, $0.5 million, and $0.4 million, respectively, and is included in cost of sales. Amortization expense on the licensed technology for each of the next five years is estimated to be $0.6 million per year. We evaluated these emission credits for impairment at December 31, 2013, and concluded no impairment in their value had occurred. |
Derivative_Instruments
Derivative Instruments | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Derivative Instruments [Abstract] | ' | ||||||||||||||||
Derivative Instruments | ' | ||||||||||||||||
7. Derivative Instruments | |||||||||||||||||
Our business activities expose us to risks associated with unfavorable changes in the market price of propylene and propane. Commencing October 2011 through March 2012, we entered into certain derivative transactions (or “the propane swaps”) with the intent of reducing volatility in our cash flows due to fluctuations in the price of propane, our sole feedstock. Under the terms of the arrangement, for a portion of our propane consumption, we locked in the price of propane as a fixed percentage of the price of Brent crude oil (the “contractual percentage”). Beginning in January 2012, and at the conclusion of each month thereafter through the May 2013 cancellation date, we performed a calculation to determine the average actual price of propane for that month as a percentage of the average actual price of Brent crude oil for that month (the “actual percentage”). If the actual percentage exceeded the contractual percentage under the propane swaps, we were owed a sum by the propane swaps counterparty. If the contractual percentage exceeded the actual percentage under the propane swaps, we owed a sum to the propane swaps counterparty. In March 2012, to offset the negative impact of the liability position of our propane swaps, we entered into reverse positions for a portion of our propane swaps maturing in the second half of 2013. These reverse positions resulted in an asset and are reflected as derivative assets in our consolidated balance sheet at December 31, 2012. | |||||||||||||||||
On April 19, 2013, we, PL Manufacturing and the counterparty to the propane swaps agreed to terminate the propane swaps remaining as of May 1, 2013. Under the omnibus agreement and the pledge agreement, any amounts that we were required to pay under the propane swaps were contributed to us as a capital contribution by PL Manufacturing and the PL Manufacturing Members. See Note 2 regarding the omnibus agreement. | |||||||||||||||||
As of December 31, 2013, we do not have any outstanding commodity forward contracts to hedge our forecasted energy commodity purchases. | |||||||||||||||||
Fair Value of Derivative Contracts | |||||||||||||||||
The fair values of our current and non-current derivative contracts are each reported separately on our consolidated balance sheets. The following table summarizes the fair values of our derivative contracts included on our consolidated balance sheets (in thousands): | |||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||
Derivatives not designated as hedging instruments | Derivative | Derivative | Derivative | Derivative | |||||||||||||
Assets, current | Liabilities, current | Assets, current | Liabilities, current | ||||||||||||||
Propane swaps | $ | — | $ | — | $ | 2,386 | $ | 65,439 | |||||||||
Total derivatives | $ | — | $ | — | $ | 2,386 | $ | 65,439 | |||||||||
Effect of Derivative Contracts on the Statement of Comprehensive Income (Loss) | |||||||||||||||||
The following table summarizes the impact of our derivative contracts on our accompanying statements of comprehensive income (loss) (in thousands): | |||||||||||||||||
Year ended | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Derivatives Not Designated as Hedging Contracts | Net Loss (Gain) Recognized in | Net Loss Recognized in | Net Loss Recognized in | ||||||||||||||
Statement of Comprehensive | Statement of Comprehensive | Statement of Comprehensive | |||||||||||||||
Income (Loss) | Income (Loss) | Income (Loss) | |||||||||||||||
Realized loss on propane swaps | $ | 61,353 | $ | 104,895 | $ | — | |||||||||||
Unrealized loss (gain) on propane swaps | (63,053 | ) | 61,386 | 1,667 | |||||||||||||
Propane swaps total | $ | (1,700 | ) | $ | 166,281 | $ | 1,667 |
Deferred_Financing_Costs_and_O
Deferred Financing Costs and Other Assets | 12 Months Ended |
Dec. 31, 2013 | |
Deferred Financing Costs and Other Assets [Abstract] | ' |
Deferred Financing Costs and Other Assets | ' |
8. Deferred Financing Costs and Other Assets | |
As of December 31, 2013 and 2012, deferred financing costs and other assets consisted primarily of deferred financing costs of $12.0 million and $9.9 million, respectively, net of amortization. See Note 11 for a summary of deferred financing cost amortization by period. | |
Scheduled amortization of deferred financing costs for the next five years as of December 31, 2013, is approximately $2.1 million in 2014, $2.2 million in 2015, $2.2 million in 2016, $2.3 million in 2017 and $1.6 million in 2018. |
Accrued_Liabilities
Accrued Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accrued Liabilities [Abstract] | ' | ||||||||
Accrued Liabilities | ' | ||||||||
9. Accrued Liabilities | |||||||||
The following table presents information regarding our accrued liabilities at December 31, 2013 and 2012: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Accrued property taxes | $ | 8,892 | $ | — | |||||
Interest payable | 5,703 | 4,255 | |||||||
Accrued salaries and benefits | 4,674 | 3,873 | |||||||
Other | 4,899 | 6,602 | |||||||
Total accrued liabilities | $ | 24,168 | $ | 14,730 |
Asset_Retirement_Obligation
Asset Retirement Obligation | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Asset Retirement Obligation [Abstract] | ' | ||||||||
Asset Retirement Obligation | ' | ||||||||
10. Asset Retirement Obligation | |||||||||
Our asset retirement obligation is comprised of expected dismantlement and other costs to be incurred upon termination of operations and the closure of the facility. The estimated asset retirement obligation liability will increase, or accrete, each year over the life of the facility until it equals the estimated cash flows expected to be incurred on anticipated closure of the facility. The change in our asset retirement obligation is set forth below at December 31 (in thousands): | |||||||||
2013 | 2012 | ||||||||
Asset retirement obligation, beginning of period | $ | 1,274 | $ | 1,180 | |||||
Accretion expense | 102 | 94 | |||||||
Asset retirement obligation, end of period | $ | 1,376 | $ | 1,274 |
Debt
Debt | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Debt [Abstract] | ' | ||||||||||||
Debt | ' | ||||||||||||
11. Debt | |||||||||||||
2013 Credit Facilities and Debt Refinancing | |||||||||||||
On March 28, 2013, we and our wholly owned finance subsidiary, PetroLogistics Finance Corp., co-issued jointly and severally $365.0 million of senior unsecured notes due 2020 (the “senior notes”), and we amended and extended our revolving credit facility from $120 million to $170 million with Morgan Stanley Senior Funding, Inc. (the “Agent”), and the lender parties thereto. We used the net proceeds from the issuance of the senior notes, after underwriting fees of $7.3 million, to (1) repay all borrowings outstanding under our term loan facility in the amount of $347.4 million, (2) pay $6.9 million for the call premium and costs associated with the cancellation of our term loan facility and (3) pay $3.0 million in commitment fees on our revolver and approximately $0.4 million in transaction fees. The proceeds from the senior notes, the repayment of the term loan and the transaction fees were net settled with the Agent as presented in the consolidated statement of cash flows for the year ended December 31, 2013. In addition, we incurred approximately $1.3 million in third party transaction costs. The senior notes were issued at the par value of $365 million, and are reported as long-term debt in our consolidated balance sheet at December 31, 2013. The refinancing of the term debt with the senior notes was treated as a debt extinguishment for accounting purposes, and we recorded total deferred financing costs of approximately $8.4 million. As part of our debt extinguishment, we wrote off unamortized deferred financing costs totaling $7.7 million and unamortized original issue discount of $5.8 million. The amendment and extension of our revolving credit facility was treated as a debt modification for accounting purposes. We recorded total deferred financing costs associated with the revolving credit facility of approximately $3.6 million, and wrote off $0.1 million of deferred financing costs associated with the prior revolving credit facility. Cash paid for deferred financing costs totaled approximately $1.2 million with the remaining portion of $10.7 million net settled with the Agent through the senior note proceeds. The deferred financing costs associated with our senior notes and our credit facility are being amortized using the effective interest method over the terms of the underlying credit facilities. | |||||||||||||
The indenture governing the senior notes and our amended and restated credit agreement contain certain restrictive financial covenants including limitations on our ability to incur additional debt and the requirement under the terms of our revolver to maintain a total senior secured leverage ratio, as defined, no greater than 2.0 to 1.0, but only in the event that on the last day of any quarter beginning with the quarter ended June 30, 2013, the aggregate amounts outstanding under the revolving credit facility exceeds $120 million. | |||||||||||||
Interest Rate and Fees. The senior notes bear interest at a fixed rate of 6.25% per annum, payable on April 1 and October 1. The revolving credit facility bears interest at a rate per annum based on an underlying base rate plus an applicable margin. The applicable margin for the revolving credit facility ranges from 2.0% for loans bearing interest at the alternate base rate to 3.0% for loans bearing interest at LIBOR. The alternate base rate is defined as the greatest of the prime rate in effect and the federal funds effective rate in effect plus ½ of 1.0%. The revolving credit facility also contains a facility commitment fee at a rate of 0.50% per annum based on the daily unused amount of the commitment amount of $170 million payable in arrears on the last day of March, June, September and December of each year. | |||||||||||||
Amortization and Final Maturity. The senior notes have a maturity date of April 1, 2020. Prior to April 1, 2016, we may redeem all or part of the senior notes at a redemption price equal to the sum of 100% of the principal amount of the senior notes, plus a “make-whole” premium, plus accrued and unpaid interest, if any, to the date of redemption. We may also redeem some or all of the senior notes on or after April 1, 2016, at the redemption prices (expressed as percentages of principal) set forth below, plus accrued and unpaid interest, if any, on the notes redeemed to the applicable redemption date. | |||||||||||||
Year | Percentage | ||||||||||||
2016 | 103.125 | % | |||||||||||
2017 | 101.563 | % | |||||||||||
2018 and thereafter | 100 | % | |||||||||||
The revolving credit facility has a maturity date of March 28, 2018, and is secured by substantially all of PL Propylene’s assets. At December 31, 2013, we had $170 million available for borrowing under our revolving credit facility. | |||||||||||||
Guarantees. The senior notes rank equally in right of payment with all of our existing and future senior indebtedness. The notes are guaranteed on a senior unsecured basis by our wholly-owned subsidiary PL Propylene. The full and unconditional guarantee ranks equally with all of the existing and future senior indebtedness of our guarantor subsidiaries. PL Propylene and PetroLogistics Finance Corp. are our only subsidiaries. Finance Corp. has no material assets and does not conduct any operations. The Partnership has no independent assets or operations, and there are no significant restrictions upon our ability to obtain funds from our subsidiaries by dividend or loan. None of the assets of our subsidiaries represent restricted net assets pursuant to Rule 4-08(e)(3) of Regulation S-X under the Securities Act of 1933, as amended. The senior notes and the guarantee are effectively subordinated to all of our and our guarantor subsidiaries’ existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness. In addition, the senior notes are structurally subordinated to all future indebtedness and other liabilities of any of our subsidiaries that are not issuers or guarantors of the senior notes. | |||||||||||||
2012 Credit Facilities | |||||||||||||
On March 27, 2012, PL Propylene, entered into a term loan facility of $350.0 million and a revolving credit facility of $120.0 million with Morgan Stanley Senior Funding, Inc., and the lenders party thereto (together, the “2012 credit facilities”). We drew $350.0 million under the term loan facility and used (1) $60.8 million to refinance and cancel our prior credit facilities, (2) $250.0 million to reimburse our Sponsors for construction capital expenditures and (3) approximately $16.5 million to pay associated financing costs and debt discounts. PL Propylene used the remaining amount (approximately $22.7 million) for working capital. The term loan included a discount of $7.0 million, which is reported net, less related amortization, against the total outstanding debt in our consolidated balance sheet at December 31, 2012. The discount was being amortized over the term of the term loan using the effective interest method. | |||||||||||||
The 2012 credit facilities contained certain restrictive financial covenants including limitations on our ability to incur additional debt and the requirement on our revolver to maintain a total secured leverage ratio, as defined, no greater than 4.0 to 1.0, but only in the event that on the last day of any quarter beginning with the quarter ended June 30, 2012, the aggregate amounts outstanding under the revolving credit facility exceeded $100.0 million. | |||||||||||||
Interest Rate and Fees. Borrowings under the 2012 credit facilities carried interest at a rate per annum based on an underlying base rate plus an applicable margin. The applicable margin for the term loan facility and the revolving credit facility ranged from 4.75% for loans bearing interest at the Alternate Base Rate to 5.75% for loans bearing interest at LIBOR. During the first quarter of 2013, the interest rate on the term loan was based on LIBOR, subject to the LIBOR floor of 1.25%, resulting in a rate of 7%. | |||||||||||||
The revolving credit facility also included a commitment fee calculated at a rate per annum equal to 0.50% on the average daily unused portion of the commitments under the revolving credit facility. In addition, we paid an annual management fee for the term loan facility and the revolving credit facility. | |||||||||||||
Amortization and Final Maturity. The term loan facility was being amortized in aggregate amounts of 0.25% per fiscal quarter of the original principal amount and had a final maturity date on the fifth anniversary of the closing date, March 27, 2017. The revolving credit facility maturity date was September 27, 2016. | |||||||||||||
As required by our term loan facility, we entered into an interest rate protection agreement in July 2012 whereby we capped the three month LIBOR rate at 2.0% for up to $115.5 million on our term loan. The agreement remains in effect exclusive of the 2013 debt refinancing described below. The agreement terminates on March 27, 2014. | |||||||||||||
Loss on Extinguishment of Debt | |||||||||||||
When we entered into the 2013 credit facilities, we recognized a loss on extinguishment of debt of approximately $20.4 million in our consolidated statement of comprehensive income (loss) for the year ended December 31, 2013. This loss on extinguishment resulted from the write off of approximately $7.7 million of unamortized deferred financing costs associated with the 2012 credit facilities. We also wrote off the unamortized original issue discount associated with the 2012 credit facilities in the amount of approximately $5.8 million. In addition, we paid a call premium of approximately $6.9 million for the prepayment of the term loan. | |||||||||||||
When we entered into the 2012 debt refinancing, we wrote off approximately $7.0 million of unamortized deferred financing costs associated with the prior credit facility. The write-off of these costs is reflected as a loss on extinguishment of debt in our consolidated statement of comprehensive income (loss) for the year ended December 31, 2012. | |||||||||||||
Interest expense, net consists of the following (in thousands): | |||||||||||||
Year Ended | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Interest expense incurred on borrowings | $ | (23,142 | ) | $ | (21,758 | ) | $ | (13,335 | ) | ||||
Amortization of discount | (315 | ) | (919 | ) | — | ||||||||
Loan commitment fees | (810 | ) | (1,014 | ) | (1,402 | ) | |||||||
Amortization of deferred financing costs | (2,134 | ) | (2,540 | ) | (3,118 | ) | |||||||
Interest income | 50 | 75 | 2 | ||||||||||
Interest expense, net | $ | (26,351 | ) | $ | (26,156 | ) | $ | (17,853 | ) |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Taxes [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
12. Income Taxes | |||||||||||||
Components of the income tax provision are solely related to the Texas Margin Tax and are as follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current tax expense: | |||||||||||||
Federal | $ | — | $ | — | $ | — | |||||||
State | 1,344 | 1,042 | 540 | ||||||||||
Total | 1,344 | 1,042 | 540 | ||||||||||
Deferred tax expense (benefit): | |||||||||||||
Federal | — | — | — | ||||||||||
State | 1,137 | (289 | ) | 832 | |||||||||
Total | 1,137 | (289 | ) | 832 | |||||||||
Total income tax expense | $ | 2,481 | $ | 753 | $ | 1,372 | |||||||
The difference between the statutory U.S. federal income tax rate and our effective income tax rate is summarized as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Federal income tax rate | 35 | % | 35 | % | 35 | % | |||||||
Increase (decrease) as a result of: | |||||||||||||
Partnership earnings not subject to tax | (35 | )% | (35 | )% | (35 | )% | |||||||
Texas Margin Tax | 1.4 | % | 1.3 | % | 5.9 | % | |||||||
Effective tax rate | 1.4 | % | 1.3 | % | 5.9 | % | |||||||
At December 31, 2013 and 2012, we have recorded $1.7 million and $0.5 million, respectively, of deferred tax liabilities. Deferred tax liabilities at December 31, 2013 and 2012, primarily relate to excess depreciation related to the facility for tax purposes in the amounts of $1.5 million and $1.1 million, respectively. The deferred tax liability at December 31, 2012, is offset by a deferred tax asset related to the unrealized loss on the propane swaps in the amount of $0.6 million. As of December 31, 2013, our tax returns for 2009 through 2013 were open for examination by the State of Texas. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Employee Benefit Plans [Abstract] | ' | ||||||||
Employee Benefit Plans | ' | ||||||||
13. Employee Benefit Plans | |||||||||
Long-Term Incentive Plan | |||||||||
The Long-Term Incentive Plan was adopted by our General Partner in May 2012. The Long-Term Incentive Plan is intended to promote our interests by providing incentive compensation, based on our common units, to employees, consultants, and directors and to encourage superior performance. The Long-Term Incentive Plan provides for grants of restricted units, phantom units, unit awards and other unit-based awards up to a plan maximum of 5,882,352 common units. | |||||||||
If an award is cancelled, forfeited, exercised, settled in cash or otherwise terminates or expires without the actual delivery of units, the units subject to such award will again be available for awards under the Long-Term Incentive Plan; however, common units withheld to satisfy exercise prices or tax withholding obligations are not available for delivery pursuant to other awards. The common units delivered pursuant to awards under the Long-Term Incentive Plan may be common units acquired on the open market or acquired from the Partnership, any affiliate or any other person or any combination thereof, as determined in the discretion of the Long-Term Incentive Plan’s administrative committee. | |||||||||
Unit-based Awards | |||||||||
A unit-based award under the Long-Term Incentive Plan is a phantom unit whose terms and conditions are set by the Long-Term Incentive Plan administrative committee and that generally vests over a period of time and during that time is subject to forfeiture. Our unit-based awards to employees will generally vest over a three-year period either annually from the date of grant or upon the third anniversary of the grant date provided the recipient has continuously provided services to us, our General Partner, or any other of our affiliates. Unit awards to members of our General Partner’s board of directors vest upon the first anniversary of the date of grant. | |||||||||
Certain unit-based awards are eligible for DERs. Absent any restrictions on the DERs in an award agreement, we will pay DERs to the holder of the award without restriction at approximately the same time as we pay quarterly cash distributions to our common unitholders. | |||||||||
During the year ended December 31, 2013, we recognized total equity-based compensation expense of approximately $4.5 million related to the unit-based awards ($2.0 million as cost of sales and $2.5 million as general and administrative expense). The weighted average grant date fair value of unit-based awards is based on the closing price of our underlying common units on the grant date. | |||||||||
During the year ended December 31, 2012, we recognized total equity-based compensation expense of approximately $2.2 million related to the unit-based awards ($1.3 million as cost of sales and $0.9 million as general and administrative expense). The weighted average grant date fair value of unit-based awards is based on the closing price of our underlying common units on the grant date. | |||||||||
Employee Awards | |||||||||
The following table presents activity related to our Long-Term Incentive Plan awards granted to employees during the years ended December 31, 2013 and 2012: | |||||||||
Unit-Based Awards | Weighted average | ||||||||
grant date fair value | |||||||||
Non-vested awards - December 31, 2011 | — | $ | — | ||||||
Awards granted | 874,124 | 15.24 | |||||||
Awards forfeited | (28,388 | ) | 16.6 | ||||||
Non-vested awards - December 31, 2012 | 845,736 | 15.19 | |||||||
Awards granted | — | — | |||||||
Awards vested | (280,539 | ) | 15.19 | ||||||
Awards forfeited | (21,423 | ) | 16.6 | ||||||
Non-vested awards - December 31, 2013 | 543,774 | $ | 15.14 | ||||||
During the year ended December 31, 2013, 280,539 of the unit-based awards vested with a fair value of $3.6 million. The aggregate intrinsic value of outstanding unit-based awards at December 31, 2013, was approximately $6.3 million. At December 31, 2013, total compensation cost related to non-vested employee unit-based awards that had not yet been recognized totaled approximately $6.1 million. The weighted-average period over which this amount will be recognized is approximately 1.5 years. At December 31, 2012, none of the unit-based awards were vested. | |||||||||
Director Awards | |||||||||
The following table presents activity related to our Long-Term Incentive Plan awards granted to members of our General Partner’s board of directors during the years ended December 31, 2013 and 2012: | |||||||||
Unit-Based Awards | Weighted average | ||||||||
grant date fair value | |||||||||
Non-vested awards - December 31, 2011 | — | $ | — | ||||||
Awards granted | 16,182 | 12.36 | |||||||
Awards forfeited | — | — | |||||||
Non-vested awards - December 31, 2012 | 16,182 | 12.36 | |||||||
Awards granted | 23,289 | 12.88 | |||||||
Awards vested | (16,182 | ) | 12.36 | ||||||
Awards forfeited | — | — | |||||||
Non-vested awards - December 31, 2013 | 23,289 | $ | 12.88 | ||||||
During the year ended December 31, 2013, 16,182 of the unit-based awards vested with a fair value of $0.2 million. The aggregate intrinsic value of outstanding director unit-based awards at December 31, 2013, was approximately $0.3 million. These awards vest ratably over one year. At December 31, 2012, none of the unit-based awards were vested. | |||||||||
Profit Sharing 401(k) Plan | |||||||||
Our General Partner sponsors the PetroLogistics GP, LLC Profit Sharing 401(k) Plan (or the “Profit Sharing Plan”) on behalf of its employees. The General Partner makes a safe harbor matching contribution equal to 100% of employee salary deferrals up to 6% of an employee’s compensation subject to Internal Revenue Service annual limitations. During the years ended December 31, 2013, 2012 and 2011, we made safe harbor matching contributions, through our General Partner, of $0.7 million, $0.5 million and $0.5 million, respectively. In addition to the matching contributions, we make discretionary profit sharing contributions which are allocated based on an employee’s age on December 31. For the years ended December 31, 2013, 2012 and 2011, we made profit sharing contributions, through our General Partner, totaling $1.3 million, $1.0 million and $0.8 million, respectively. Employees are generally eligible to participate in the Profit Sharing Plan following one year of service and vest in the matching and profit sharing contributions at a rate of 20% per year following two years of employment. |
PL_Manufacturing_Profits_Inter
PL Manufacturing Profits Interest Plan | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
PL Manufacturing Profits Interest Plan [Abstract] | ' | ||||||||||||||||||||||||
PL Manufacturing Profits Interest Plan | ' | ||||||||||||||||||||||||
14. PL Manufacturing Profits Interest Plan | |||||||||||||||||||||||||
Prior to the IPO, PL Manufacturing maintained a profits interest plan (the “Profits Interest Plan”) for the benefit of our employees, as well as the key management employees of certain affiliated companies. Because the Profits Interest Plan was intended to compensate award recipients with respect to the services they performed for our benefit, the equity-based compensation expense is reflected in our financial statements. The Profits Interests Units (comprising the Class B, C and D Units) as referenced in this footnote are fully vested units in PL Manufacturing. Profits Interests Units are not the same security as our common units. Neither the Partnership nor the General Partner has any reimbursement obligation or other financial responsibility with respect to any future distributions made by PL Manufacturing. | |||||||||||||||||||||||||
PetroLogistics Company LLC (“PetroLogistics LLC”) is an affiliate entity. Through December 31, 2011, the senior executives who oversee our operations were employed by PetroLogistics LLC and provided management services to us pursuant to our services agreement with PetroLogistics LLC. The majority of the profits interests (or “Profits Interest Units”) that PL Manufacturing issued were to persons employed by PetroLogistics LLC. For accounting purposes, we treated these awards as being made to non-employees through December 31, 2011. As of January 1, 2012, all PetroLogistics Company LLC employees transferred their employment to the General Partner and continued to provide management services to us. As of that date, the underlying grant date fair value of nonvested Profits Interest Units held by the former PetroLogistics LLC employees became fixed due to the change in employment status, and equity-based compensation expense attributed to these Profits Interest Units for the period from January 1, 2012 through the closing of the IPO in May 2012, was based on the underlying fair value of the Profits Interest Units as of January 1, 2012. | |||||||||||||||||||||||||
Vesting and Unit Rights | |||||||||||||||||||||||||
Under the Profits Interest Plan, Class B, C and D Profits Interest Units were granted to management and employees. The Class B Profits Interest Units were fully vested at the date of issuance, July 23, 2008. The issued and outstanding Class C and Class D Profits Interest Units vested over four years beginning on the later of March 11, 2009, or the recipient’s date of employment. The Class C and Class D Profits Interest Units became fully vested upon the closing of the IPO in May 2012. There were no forfeitures for any of the periods presented. At the closing of the IPO, remaining unrecognized compensation expense related to the previously nonvested Profits Interest Units was fully recognized in the amount of approximately $43.7 million. | |||||||||||||||||||||||||
Determination of Equity-Based Compensation Expense | |||||||||||||||||||||||||
Equity-based compensation expense for all Profits Interest Units issued to employees was based on the estimated grant-date fair value of the Profits Interest Units less estimated forfeitures. We recognized this equity-based compensation expense on a straight-line basis over the requisite service period of the award. For Profits Interest Units granted to non-employees, non-vested Profits Interest Units were revalued at each reporting date at the current fair value, with any change in value reflected in the statements of comprehensive income (loss). | |||||||||||||||||||||||||
Estimates and Key Assumptions | |||||||||||||||||||||||||
Our predecessor engaged an independent valuation specialist to assist us in determining the fair value of the Profits Interest Units for the years ended December 31, 2011 and 2010. The fair values of the Profits Interest Units as of December 31, 2011, were used as the basis for recording equity-based compensation expense related to the Profits Interest Units in 2012 as the values of the Profits Interest Units became fixed on January 1, 2012, due to the change in employment status of the former PetroLogistics LLC employees. Through March 31, 2011, we estimated the fair values of the Profits Interest Units using the Black-Scholes option-pricing model (or “OPM”). Beginning in the second quarter of 2011, we estimated the fair values of the Profits Interest Units using a hybrid method considering a probability weighting between (i) a 15% weighting with respect to a delayed exit scenario, in which we estimated the fair value of the Profits Interest Units using the OPM, and (ii) an 85% weighting with respect to an expected initial public offering scenario in which we effect an initial public offering as a master limited partnership, and which is largely based on comparable company valuations. These estimates required the use of highly subjective and complex assumptions to determine the fair value of equity-based awards, including the equity value of our business and the Profits Interests Units’ expected time to liquidity, volatility, risk-free interest rate and dividend yield. | |||||||||||||||||||||||||
Given the absence of a public trading market for the Profits Interest Units and in accordance with the American Institute of Certified Public Accountants Practice Guide, Valuation of Privately-Held-Company Equity Securities Issued as Compensation , we exercised reasonable judgment and considered numerous objective and subjective factors to determine the best estimate of the equity value of our business, including, among others: comparable company valuations, forecasts of future propylene and propane prices that are published by industry sources as of each valuation date; contemporaneous and retrospective valuations performed by an independent valuation specialist; the status of the facility’s construction and operations, including risks attendant thereto; the likelihood of our achieving a liquidity event given prevailing market conditions; the nature, history and strategy for our business; the illiquidity of share-based awards involving private company securities; and current and future expectations about macroeconomic conditions. | |||||||||||||||||||||||||
In valuing our business for purposes of the initial public offering scenario, we estimated the equity value of our business by considering forecasted sales and costs, including consideration of forecasts of future propylene and propane prices that were published by industry sources as of each valuation date. The forecasted financial results, including distributable cash flows, were then used to estimate the equity value of our business by applying yields of master limited partnerships. These market yields were based on then-current and expected distributions and unit prices of comparable master limited partnerships. | |||||||||||||||||||||||||
In valuing our business prior to March 31, 2011, and for purposes of the delayed exit scenario on later dates, we estimated the equity value of our business by considering a weighted combination of value indications under two valuation approaches, an income approach and a market approach. The income approach estimated the present value of future estimated cash flows, based upon forecasted sales and costs, including consideration of forecasts of future propylene and propane prices that were published by industry sources as of each valuation date. These future cash flows were discounted to their present values using a discount rate derived from an analysis of the cost of capital of comparable publicly traded companies in our industry or similar lines of business as of each valuation date, as adjusted to reflect the risks inherent in our cash flows. The market approach estimates the fair value of a company by applying market multiples of comparable publicly traded companies in our industry or similar lines of business. These market multiples were based on key metrics implied by the enterprise values or acquisition values of comparable publicly traded companies. | |||||||||||||||||||||||||
The fair values of our Profits Interest Units on a per-Unit basis were $3.16, $2.39 and $2.34 for Class B, Class C and Class D, respectively, at December 31, 2011. The weighted-average assumptions used in determining the fair values at December 31, 2011, included a 2-year estimated time to liquidity, 50% expected volatility, a 0.25% risk-free interest rate, and a 0% dividend yield. | |||||||||||||||||||||||||
We estimated the time to a liquidity event based on our then-current expectations regarding the period during which we believed we could achieve significant milestones in our business strategy and effect a liquidity event. We had no historical volatility with respect to the Profits Interest Units since the Profits Interest Units had never been publicly traded. Accordingly, the volatility was estimated by using volatility information from a peer group of publicly traded companies. The risk-free rate was based on the U.S. Treasury rate for notes with terms best matching the Profits Interest Units’ expected terms. The dividend yield assumption of 0% was based on our history and our expectation of not paying dividends if we did not change our structure. | |||||||||||||||||||||||||
At the date of the IPO, the per unit fair values of the Class B, Class C and Class D Profits Interest Units based on the waterfall allocation of the IPO proceeds to PL Manufacturing and the PL Manufacturing Members was $4.53, $3.73 and $3.73, respectively. | |||||||||||||||||||||||||
Total recognized equity-based compensation expense related to the Profits Interest Plan was as follows (in thousands): | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||||||
Cost of sales | $ | 402 | $ | 311 | |||||||||||||||||||||
General and administrative expense | 54,788 | 64,072 | |||||||||||||||||||||||
Total equity-based compensation expense related to the Profits Interest Plan | $ | 55,190 | $ | 64,383 | |||||||||||||||||||||
Employee Awards | |||||||||||||||||||||||||
There were no grants of Profits Interest Units to employees during 2013, 2012 or 2011, and there was no activity relating to the employee Profits Interests Units during the year ended December 31, 2013. | |||||||||||||||||||||||||
The table below summarizes the activity relating to the employee Profits Interests Units during the year ended December 31, 2012: | |||||||||||||||||||||||||
Class B Units | Class C Units | Class D Units | |||||||||||||||||||||||
Number of | Weighted-Average | Number of | Weighted Average | Number of | Weighted-Average | ||||||||||||||||||||
Units | Grant Date | Units | Grant Date | Units | Grant Date | ||||||||||||||||||||
Fair Value | Fair Value | Fair Value | |||||||||||||||||||||||
Units outstanding at December 31, 2011 | — | $ | — | 5,695,000 | $ | 0.35 | — | $ | — | ||||||||||||||||
Units granted | — | — | — | — | — | — | |||||||||||||||||||
Units forfeited | — | — | — | — | — | — | |||||||||||||||||||
Increase in units resulting from changes in employment status at January 1, 2012 | 3,912,720 | 0.5 | 48,659,205 | 0.35 | 27,527,103 | 0.26 | |||||||||||||||||||
Units outstanding at December 31, 2012 | 3,912,720 | $ | 0.5 | 54,354,205 | $ | 0.35 | 27,527,103 | $ | 0.26 | ||||||||||||||||
The table below summarizes the activity relating to the nonvested employee Profits Interests Units granted under the Plan for the year ended December 31, 2012: | |||||||||||||||||||||||||
Class B Units | Class C Units | Class D Units | |||||||||||||||||||||||
Number of | Weighted-Average | Number of | Weighted Average | Number of | Weighted-Average | ||||||||||||||||||||
Units | Grant Date | Units | Grant Date | Units | Grant Date | ||||||||||||||||||||
Fair Value | Fair Value | Fair Value | |||||||||||||||||||||||
Nonvested units outstanding at December 31, 2011 | — | $ | — | 1,910,000 | $ | 0.35 | — | $ | — | ||||||||||||||||
Units granted | — | — | — | — | — | — | |||||||||||||||||||
Increase in nonvested units resulting from changes in employment status at January 1, 2012 | — | — | 24,329,602 | 0.35 | 13,763,551 | 0.26 | |||||||||||||||||||
Units vested | — | — | (26,239,602 | ) | 0.35 | (13,763,551 | ) | 0.26 | |||||||||||||||||
Nonvested units outstanding at December 31, 2012 | — | $ | — | — | $ | — | — | $ | — | ||||||||||||||||
Vested units at December 31, 2011 | — | $ | — | 3,785,000 | $ | 0.35 | — | $ | — | ||||||||||||||||
Units vested | — | — | 12,926,051 | 0.35 | 6,881,775 | 0.26 | |||||||||||||||||||
Increase in vested units resulting from changes in employment status at January 1, 2012 | 3,912,720 | 0.5 | 24,329,603 | 0.35 | 13,763,552 | 0.26 | |||||||||||||||||||
Units vested upon closing of the IPO | — | — | 13,313,551 | 0.35 | 6,881,776 | 0.26 | |||||||||||||||||||
Vested units at December 31, 2012 | 3,912,720 | $ | 0.5 | 54,354,205 | $ | 0.35 | 27,527,103 | $ | 0.26 | ||||||||||||||||
The total fair value of employee Profits Interest Units that vested during the years ended December 31, 2012 and 2011 was $120.6 million and $0.3 million, respectively. | |||||||||||||||||||||||||
Non-Employee Awards | |||||||||||||||||||||||||
There were no grants of Profits Interest Units to non-employees during 2013, 2012 or 2011, and there was no activity relating to the non-employee Profits Interests Units during the year ended December 31, 2013. | |||||||||||||||||||||||||
The table below summarizes the activity relating to the non-employee Profits Interest Units during the year ended December 31, 2012: | |||||||||||||||||||||||||
Class B Units | Class C Units | Class D Units | |||||||||||||||||||||||
Number of | Weighted-Average | Number of | Weighted Average | Number of | Weighted-Average | ||||||||||||||||||||
Units | Grant Date | Units | Grant Date | Units | Grant Date | ||||||||||||||||||||
Fair Value | Fair Value | Fair Value | |||||||||||||||||||||||
Units outstanding at December 31, 2011 | 3,912,720 | $ | 0.5 | 49,359,205 | $ | 0.35 | 27,527,103 | $ | 0.26 | ||||||||||||||||
Units granted | — | — | — | — | — | — | |||||||||||||||||||
Units forfeited | — | — | — | — | — | — | |||||||||||||||||||
Decrease in units resulting from changes in employment status at January 1, 2012 | (3,912,720 | ) | 0.5 | (48,659,205 | ) | 0.35 | (27,527,103 | ) | 0.26 | ||||||||||||||||
Units outstanding at December 31, 2012 | — | $ | — | 700,000 | $ | 0.35 | — | $ | — | ||||||||||||||||
The table below summarizes the activity relating to the nonvested non-employee Profits Interest Units under the Plan for the year ended December 31, 2012: | |||||||||||||||||||||||||
Class B Units | Class C Units | Class D Units | |||||||||||||||||||||||
Number of | Weighted-Average | Number of | Weighted Average | Number of | Weighted-Average | ||||||||||||||||||||
Units | Grant Date | Units | Grant Date | Units | Grant Date | ||||||||||||||||||||
Fair Value | Fair Value | Fair Value | |||||||||||||||||||||||
Nonvested units outstanding at December 31, 2011 | — | $ | — | 24,679,602 | $ | 0.35 | 13,763,551 | $ | 0.26 | ||||||||||||||||
Units granted | — | — | — | — | — | — | |||||||||||||||||||
Decrease in nonvested units resulting from changes in employment status at January 1, 2012 | — | — | (24,329,602 | ) | 0.35 | (13,763,551 | ) | 0.26 | |||||||||||||||||
Units vested | — | — | (350,000 | ) | 0.35 | — | — | ||||||||||||||||||
Nonvested units outstanding at December 31, 2012 | — | $ | — | — | $ | — | — | $ | — | ||||||||||||||||
Vested units at December 31, 2011 | 3,912,720 | $ | 0.5 | 24,679,603 | $ | 0.35 | 13,763,552 | $ | 0.26 | ||||||||||||||||
Units vested | — | — | 37,500 | 0.35 | — | — | |||||||||||||||||||
Decrease in vested units resulting from changes in employment status at January 1, 2012 | (3,912,720 | ) | 0.5 | (24,329,603 | ) | 0.35 | (13,763,552 | ) | 0.26 | ||||||||||||||||
Units vested upon closing of the IPO | — | — | 312,500 | 0.35 | — | — | |||||||||||||||||||
Vested units at December 31, 2012 | — | $ | — | 700,000 | $ | 0.35 | — | $ | — | ||||||||||||||||
The total fair value of non-employee Profits Interest Units that vested during the years ended December 31, 2012 and 2011 was $1.3 million and $34.8 million, respectively. |
Related_Party_and_Affiliate_Tr
Related Party and Affiliate Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related Party and Affiliate Transactions [Abstract] | ' |
Related Party and Affiliate Transactions | ' |
15. Related Party and Affiliate Transactions | |
Reimbursement Agreement with Lindsay Goldberg | |
In November 2013 we entered into a Reimbursement Agreement with Lindsay Goldberg pursuant to which Lindsay Goldberg agreed to reimburse us for 50% of certain costs we incurred under a development agreement with a third party. In December 2013, Lindsay Goldberg reimbursed us $0.7 million of project development costs which we recorded as a reduction in development expense in our consolidated statements of comprehensive income (loss) for the year ended December 31, 2013. We ultimately elected not to pursue the potential development opportunity and anticipate receiving no further payments under the terms of the Reimbursement Agreement. | |
Services Agreement with PetroLogistics GP LLC | |
We entered into a services agreement with our General Partner on January 1, 2012, pursuant to which our General Partner provides certain operational, managerial and general administrative services to us. All employees of PL Propylene and PetroLogistics LLC became employees of our General Partner on January 1, 2012. We reimburse the General Partner for all direct and indirect expenses the General Partner incurs or payments the General Partner makes on our behalf including, without limitation, salary, bonus, incentive cash compensation and employee benefits. During the years ended December 31, 2013 and 2012, we incurred fees of $21.9 million and $16.6 million, respectively, under the services agreement with our General Partner. The amounts we pay the General Partner for these services are reported in the statements of comprehensive income (loss) in the line item to which the expense relates. | |
Services Agreement with PL Midstream LLC | |
PL Midstream LLC (“PL Midstream”), a company in which we previously had a related party affiliation through Lindsay Goldberg, provided pipeline management services to us for a monthly charge. Lindsay Goldberg sold PL Midstream effective October 1, 2012. During the years ended December 31, 2012 and 2011, we incurred fees of $0.9 million and $0.8 million, respectively, for pipeline management services with PL Midstream which are included in cost of sales. | |
Services Agreement with PetroLogistics Company LLC | |
During 2011 PetroLogistics LLC provided certain services to us, including: (i) accounting, payroll, and other financial services; (ii) information systems, network, and communication services; and (iii) management services. These services were provided in exchange for a monthly charge. During the year ended December 31, 2011, we incurred fees of $2.8 million from PetroLogistics LLC. These fees are reported as general and administrative expense. As of January 1, 2012, PetroLogistics LLC no longer provides general and administrative services to us, and these services are now being provided to us by our General Partner. | |
Indemnification Agreement | |
The partnership agreement provides that each of our directors and officers may receive indemnification for actions associated with being a director or officer in order to enhance the indemnification rights provided under Delaware law and the partnership agreement. The partnership agreement provides each such director or officer with rights to receive his or her costs of defense if the individual is a party or witness to any proceeding other than a proceeding brought by or in the right of, us, provided that such director or officer has not acted in bad faith or engaged in fraud with respect to the action that gave rise to his or her participation in the proceeding. | |
Other | |
We received the final reimbursement for realized losses from PL Manufacturing and the PL Manufacturing Members on August 14, 2013, at which time the omnibus agreement terminated in accordance with its terms. See Note 2 for further discussion relating to the omnibus agreement. | |
During the years ended December 31, 2013, 2012 and 2011, we utilized the services of a company owned by Lindsay Goldberg in the amounts of approximately $2.9 million, $1.5 million, and $2.8 million, respectively, in connection with facility maintenance and construction activities. | |
In 2011, we entered into an agreement with Lindsay Goldberg, under which we were to pay an annual fee of $2.0 million for advisory services. This agreement terminated under its terms with the IPO. At the closing of the IPO, we owed Lindsay Goldberg approximately $2.7 million related to this fee. This amount was waived by Lindsay Goldberg in May 2012 in connection with the IPO, and recorded as a contribution to partners’ capital. |
Concentration_of_Risk
Concentration of Risk | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Concentration of Risk [Abstract] | ' | ||||||||||||
Concentration of Risk | ' | ||||||||||||
16. Concentration of Risk | |||||||||||||
Credit Risk Due to Industry and Customer Concentrations | |||||||||||||
All of our revenues are derived from companies in the petrochemical industry, and our principal market is the Texas Gulf Coast region. This concentration could affect our overall exposure to credit risk since these customers may be affected by similar economic or other conditions. Generally, we do not require collateral for our accounts receivable; however, we attempt to negotiate prepayment agreements with customers that are deemed to be credit risks in order to minimize our potential exposure to any defaults. | |||||||||||||
The following table presents the concentration of total sales to our largest customers: | |||||||||||||
Year Ended | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Dow Chemical Company (Dow) | 44 | % | 42 | % | 55 | % | |||||||
Total Petrochemicals USA, Inc. (Total) | 21 | % | 20 | % | 24 | % | |||||||
INEOS Olefins and Polymers USA (INEOS) | 18 | % | 18 | % | 16 | % | |||||||
LyondellBasell Industries N.V. (LyondellBasell) | 6 | % | 12 | % | — | ||||||||
Others (less than 10% individually) | 11 | % | 8 | % | 5 | % | |||||||
Total sales | 100 | % | 100 | % | 100 | % | |||||||
We have entered into market-based sales contracts with our propylene customers to provide minimum annual quantities. (see Note 17). These minimum quantities comprise the substantial majority of the facility’s anticipated annual production of propylene. This concentration in the volume of business transacted with a limited number of customers subjects us to substantial risks. The loss of any of the above-named customers without replacement on comparable terms could adversely affect our business, results of operations and financial condition. If we were to lose one or more of our current customers, we would seek to engage in sales transactions with other petrochemical companies on either a long-term contract basis or in the spot market, although there is no assurance we would be able to do so. | |||||||||||||
Feedstock Supplier Concentration Risk | |||||||||||||
We have entered into long-term market-based contracts for the purchase of propane, our sole feedstock, as well as nitrogen and natural gas, and each of these contracts has a sole supplier. Interruptions in or limitations on volumes provided under these contracts subject us to the risk that we would be unable to meet our production requirements if we are unable to locate and procure replacement volumes from alternate sources. | |||||||||||||
Counterparty Risk with Respect to Derivative Instruments | |||||||||||||
Our business activities expose us to the risk associated with changes in the market price of propylene and propane. In order to manage our exposure to the price risk related to propane, we began entering into the propane swaps in October 2011 through March 2012. Pursuant to the omnibus agreement, through our General Partner, we allocated all of our benefits and obligations under the propane swaps to PL Manufacturing and the PL Manufacturing Members. (see Note 7). | |||||||||||||
In those situations where we are exposed to credit risk in our derivative instruments transactions, we analyze the counterparty’s financial condition prior to entering into an agreement. Generally, we do not require collateral nor do we anticipate nonperformance by our counterparty. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Commitments and Contingencies [Abstract] | ' | ||||||||||||
Commitments and Contingencies | ' | ||||||||||||
17. Commitments and Contingencies | |||||||||||||
We are obligated under long-term market-based propylene sales agreements to supply our customers with minimum quantities of propylene annually absent the occurrence of a force majeure event. | |||||||||||||
The following table illustrates certain information regarding our propylene contracts as of December 31, 2013 (in millions of pounds): | |||||||||||||
Company | Max | Min | Ends December 31 | ||||||||||
Contracts: | |||||||||||||
Dow | 690 | 510 | 2018 | ||||||||||
Total | 300 | 240 | 2017 | ||||||||||
INEOS | 288 | 228 | 2016 | ||||||||||
LyondellBasell | 60 | 60 | 2014 | ||||||||||
BASF Corporation | 60 | 48 | 2016 | ||||||||||
Total | 1,398 | 1,086 | |||||||||||
Purchase Obligations | |||||||||||||
Under the terms of our propylene storage and transportation contracts and a nitrogen supply contract, we are obligated to make payments that approximate the following: $1.1 million in 2014, $0.6 million in each of 2015, 2016 and 2017, $0.7 million in 2018 and $1.4 million thereafter. Our propylene storage and transportation contracts are based on the number of pounds of propylene stored with the counterparty and contain minimum annual storage and transportation amounts. During the years ended December 31, 2013, 2012, and 2011, we incurred $2.7 million, $2.5 million, and $1.7 million, respectively, under our long-term propylene storage and transportation contracts. Our nitrogen supply contract is a market-based contract that is adjusted annually for inflation and contains minimum quarterly purchase quantities. During the years ended December 31, 2013, 2012 and 2011, we incurred $1.0 million, $0.9 million, and $0.9 million, under our nitrogen supply contract. We also have contracts to purchase propane and other materials used in the production process, but these contracts do not specify minimum purchase commitments. | |||||||||||||
Lease Obligations | |||||||||||||
We are obligated for rentals under a lease for office space that commenced on April 1, 2012. Under this contract, we are obligated to make payments that approximate the following: $0.4 million in each of 2014, 2015, 2016, 2017, and $0.1 million in 2018. The office space lease expires April 30, 2018. During 2011, we did not have any non-cancelable lease agreements that extended beyond one year. | |||||||||||||
For 2013, 2012, and 2011, we recorded total rent expense, which includes equipment rentals, of $1.8 million, $2.5 million, and $2.6 million, respectively. | |||||||||||||
Environmental Matters | |||||||||||||
We are subject to extensive federal, state and local laws, regulations, rules and ordinances relating to pollution, protection of the environment and human health, and the generation, storage, handling, transportation, treatment, disposal and remediation of hazardous substances and waste materials. Actual or alleged violations of environmental laws or permit requirements could result in restrictions or prohibitions on facility operations, substantial civil or criminal sanctions, as well as, under some environmental laws, the assessment of strict liability and/or joint and several liability. We are also subject to climate change laws and regulations. The facility may experience releases of hydrocarbons or other contaminants into the environment, or we may discover past releases that were previously unidentified. Although we maintain an inspection program designed to prevent and, as applicable, detect and address such releases promptly, damages and liabilities incurred due to any such environmental releases from our assets may affect our business. To date, management has not identified any material environmental obligations. | |||||||||||||
Insurance | |||||||||||||
The facility may experience damage as a result of an accident, natural disaster or terrorist activity. These hazards can cause personal injury and loss of life, severe damage to and destruction of property and equipment, pollution or environmental damage, and suspension of operations. We maintain insurance of various types that we consider adequate to cover our assets and operations. The insurance policies are subject to deductibles, limits and sub-limits and other terms, such that our ability to receive indemnification thereunder is limited. Our insurance does not cover every potential risk associated with operating the facility. | |||||||||||||
The occurrence of a significant event that is not fully insured, indemnified or reserved against, or the failure of a party to meet its indemnification obligations, could materially and adversely affect our operations and financial condition. We believe we are adequately insured with respect to our operations. | |||||||||||||
Legal Matters | |||||||||||||
We are routinely involved in various legal matters arising from the normal course of business for which no provision has been made in the financial statements. While the outcome of these proceedings cannot be predicted with certainty, we believe that these proceedings, when resolved, will not have a material adverse effect on our results of operations, financial position, or liquidity. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
18. Subsequent Events | |
In January 2014, we granted 212,372 phantom units to our employees under our Long-Term Incentive Plan with a grant date fair value of $12.00 per unit or approximately $2.5 million. These phantom units will vest on the third anniversary of the grant date so long as the award recipient remains continuously employed by the General Partner. | |
On February 3, 2014, the General Partner approved a distribution to common unitholders of record as of February 18, 2014. The distribution of 30 cents per common unit was paid on February 25, 2014. | |
In March 2014, we received notice of a lawsuit filed against us for liability involving personal injuries sustained in February 2014 by a contractor’s employee working at our facility. Our third-party contracts contain indemnification clauses for incidents of this nature, including an obligation of the contractor to indemnify and defend us with respect to the applicable lawsuit. We also carry general liability insurance, subject to a deductible. We do not expect the cost of a settlement or eventual judgment, if any, to be material to our financial position or results of operations. |
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Quarterly Financial Data (Unaudited) [Abstract] | ' | ||||||||||||||||||
Quarterly Financial Data (Unaudited) | ' | ||||||||||||||||||
19.Quarterly Financial Data (Unaudited) | |||||||||||||||||||
Gross | Net Income | Net Income (Loss) | |||||||||||||||||
Sales | Profit | (Loss) | per Unit | ||||||||||||||||
(In millions, except per unit amounts) | |||||||||||||||||||
2013 | |||||||||||||||||||
First Quarter | $ | 208.7 | $ | 94.6 | $ | 57.1 | $ | 0.41 | |||||||||||
Second Quarter | 159.4 | 48.3 | 41.4 | 0.29 | |||||||||||||||
Third Quarter | 198.4 | 68.5 | 55.1 | 0.39 | |||||||||||||||
Fourth Quarter | 191 | 32.9 | 21.4 | 0.15 | |||||||||||||||
2012 | |||||||||||||||||||
First Quarter | $ | 234.7 | $ | 66 | $ | (45.4 | ) | $ | N/A | ||||||||||
Second Quarter | 193.8 | 72.4 | (37.8 | ) | 0.2 | -1 | |||||||||||||
Third Quarter | 156.1 | 38.1 | 0.6 | - | |||||||||||||||
Fourth Quarter | 166.1 | 45.5 | 25.9 | 0.19 | |||||||||||||||
(1) Represents net income per unit subsequent to the IPO (May 9, 2012, through June 30, 2012). |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Significant Accounting Policies [Abstract] | ' | ||||||||||||||||
Use of Estimates | ' | ||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of sales and expenses during the reporting period. We review our estimates on an ongoing basis using currently available information. Changes in facts and circumstances may result in revised estimates, and actual results could differ materially from those estimates. | |||||||||||||||||
Sales | ' | ||||||||||||||||
Sales | |||||||||||||||||
Sales of propylene and by-products are recorded when persuasive evidence of an arrangement exists, goods have been delivered, consideration to be received is fixed and determinable, and collectability is reasonably assured. Cash received in advance of product delivery to the customer is reported as deferred revenue. Upon delivery to the customer and satisfaction of the aforementioned criteria for sales recognition, the deferred revenue is reported as a sale. Sales are presented net of discounts and allowances. By-product sales are reported together with propylene sales. Transportation costs billed to customers are also recorded as a component of sales. | |||||||||||||||||
Inventory purchases and sales transactions with the same counterparty are combined for accounting purposes if they were entered into in contemplation of each other. Inventory purchases and sales under buy/sell transactions are treated as inventory exchanges in our statements of comprehensive income (loss). This treatment of buy/sell transactions eliminates sales and purchases in equal amounts in our statements of comprehensive income (loss). Accordingly, no gain or loss is recognized on the transaction at the time, with any difference in value between the two transactions recorded as an additional cost of inventory. | |||||||||||||||||
Cost of Sales | ' | ||||||||||||||||
Cost of Sales | |||||||||||||||||
Cost of sales represents the costs of propylene and by-products sold. These costs include the cost of propane, fuel and utilities used in the propylene production process, such as natural gas, nitrogen and electricity, as well as direct operating expenses along with insurance and property tax expenses associated with the facility. Direct operating expenses include all direct and indirect labor at the facility as well as fixed and variable overhead expenses. Depreciation, amortization and accretion expenses, exclusive of the amortization of deferred financing fees, are also included within cost of sales. | |||||||||||||||||
During certain periods in 2013, 2012 and 2011, the facility operated below normal capacity. Accordingly, we recorded charges to cost of sales to reflect unabsorbed fixed overhead costs. | |||||||||||||||||
Development Expense | ' | ||||||||||||||||
Development Expense | |||||||||||||||||
Development expense includes preliminary engineering and design work and other expenses for projects which do not qualify for capitalization under GAAP. | |||||||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||
We consider all short-term instruments with an original maturity of three months or less to be cash equivalents. We maintain cash in bank deposit accounts that, at times, may exceed federally insured limits. We have not experienced any losses in such accounts, and we believe we are not exposed to any significant credit risk on cash and cash equivalents. | |||||||||||||||||
Restricted Cash | ' | ||||||||||||||||
Restricted Cash | |||||||||||||||||
During 2011, following the conversion of our construction loan to a term loan that was scheduled to mature in 2014, we funded $10.9 million into a debt service reserve to serve as collateral for our debt. This cash outflow is classified as a financing cash flow in the 2011 consolidated statement of cash flows. Also during 2011, we funded $3.0 million into a major maintenance reserve, which was to be used to fund future major maintenance expenditures. This amount has been included in operating activities in the 2011 consolidated statement of cash flows. In connection with the refinancing of our construction loan into a term loan in 2012 (see Note 11), restrictions on our cash balances were lifted. The decrease in the debt service reserve of $10.9 million is classified as a financing cash flow, and the remaining restricted cash of $34.9 million is classified as an operating cash flow in the 2012 consolidated statement of cash flows. | |||||||||||||||||
Accounts Receivable | ' | ||||||||||||||||
Accounts Receivable | |||||||||||||||||
We extend credit to customers in accordance with normal industry standards and terms. We review accounts receivable monthly and establish an allowance for doubtful accounts based on known factors surrounding the credit risk of specific customers, historical trends and other information. Accounts receivable are not collateralized, and we may charge interest on receivables should they become past due. No allowance for doubtful accounts was considered necessary at December 31, 2013 and 2012, and we have not recorded any interest income related to past due receivables. | |||||||||||||||||
Inventory | ' | ||||||||||||||||
Inventory | |||||||||||||||||
Inventory is carried at the lower of cost or market, with cost determined using the weighted-average method. | |||||||||||||||||
Prepaid Expenses and Other Current Assets | ' | ||||||||||||||||
Prepaid Expenses and Other Current Assets | |||||||||||||||||
As of December 31, 2013, prepaid expenses and other current assets consists primarily of $2.5 million for premiums paid for insurance which are amortized over the policy periods. As of December 31, 2012, prepaid expenses and other current assets consists primarily of a $40.0 million cash deposit we made to a counterparty as collateral for our commodity derivative contracts (the “propane swaps”). The cash was held by the counterparty and returned to us in 2013 following the termination of the propane swaps. | |||||||||||||||||
Derivative Instruments | ' | ||||||||||||||||
Derivative Instruments | |||||||||||||||||
Commencing October 2011 and through March 2012, we entered into commodity derivative contracts with settlement dates in 2012 and 2013 to manage our exposure to commodity price risk with respect to propane, our sole feedstock. The propane swaps were designed to mitigate the risk associated with unfavorable market movements in the price of energy commodities. Our propane swaps were intended to act as a hedging (offset) mechanism against the volatility of energy commodity prices by allowing us to transfer some of the price risk to counterparties who were able and willing to bear it. | |||||||||||||||||
Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC” or “Codification”) Topic 815, Derivatives and Hedging (“ASC Topic 815”), addresses the accounting for derivative contracts. We entered into our commodity derivative contracts to economically hedge an exposure through a relationship that does not qualify for hedge accounting under ASC Topic 815. Our derivative contracts are recorded as derivative assets and liabilities, as applicable, at fair value on the balance sheet, and the associated unrealized gains and losses are recorded as current expense or income in the statement of comprehensive income (loss). Unrealized gains or losses on commodity derivative contracts represent the non-cash change in the fair value of these derivative instruments and do not impact operating cash flows on the statement of cash flows. Until settlement occurred, this change in fair value resulted in non-cash gains or losses being reported in our operating results as gain or loss on derivatives. | |||||||||||||||||
In addition to the propane swaps, we entered into an interest rate protection agreement in July 2012 for a nominal amount whereby we capped the three month LIBOR rate at 2.0% for up to $115.5 million on our term loan. The agreement terminates March 27, 2014. | |||||||||||||||||
Omnibus Agreement | ' | ||||||||||||||||
Omnibus Agreement | |||||||||||||||||
On May 9, 2012, we, the General Partner, Propylene Holdings, PL Propylene and PL Manufacturing LLC, entered into an omnibus agreement (the “omnibus agreement”). Pursuant to the omnibus agreement and a related pledge agreement (the “pledge agreement”), we allocated all of our benefits and obligations under the propane swaps to PL Manufacturing and the PL Manufacturing Members. | |||||||||||||||||
On April 19, 2013, we, PL Manufacturing and the counterparty to the propane swaps agreed to terminate the propane swaps remaining as of May 1, 2013. Under the omnibus agreement and the pledge agreement, any amounts that we were required to pay under the propane swaps were contributed to us as a capital contribution by PL Manufacturing and the PL Manufacturing Members. | |||||||||||||||||
While we did not bear any of the costs nor receive any of the benefits of the propane swaps upon entering the omnibus agreement, we remained a party to the propane swaps, and were obligated to make payments to the propane swap counterparties as they come due and to post any collateral as required, under the terms of the propane swap agreement. As a result, we continued to record the fair value of the propane swaps on our balance sheet with the related gains or losses reflected in our statement of comprehensive income (loss). To the extent that the Partnership made payments under the propane swaps, PL Manufacturing and the PL Manufacturing Members were responsible for making quarterly capital contributions in an amount equal to the sum of all payments we made under such propane swaps during the applicable fiscal quarter or that we owed at the end of the quarter. During the years ended December 31, 2013 and 2012, PL Manufacturing and the PL Manufacturing Members paid approximately $93.2 million and $47.0 million, respectively, to us as reimbursement for realized losses on the propane swaps with the 2012 period pro-rated from May 9, 2012, the closing date of our initial public offering (the “IPO”), through December 31, 2012. See Note 3 regarding the IPO. | |||||||||||||||||
In connection with the termination of the propane swaps, we paid a cancellation payment of $34.4 million in May 2013, of which $5.4 million was reimbursed through a reduction in the distribution paid to PL Manufacturing and the PL Manufacturing Members in May 2013 in accordance with the terms of the omnibus agreement. The remaining $29.0 million was settled with cash held as collateral by the propane swap counterparty and was immediately reimbursed by PL Manufacturing and the PL Manufacturing Members. During the years ended December 31, 2013 and 2012, we recorded capital contributions of approximately $61.4 million and $78.9 million, respectively, for the reimbursement of the realized losses on the propane swaps and the reimbursement of the termination payment by PL Manufacturing and the PL Manufacturing Members. We received the final reimbursement for realized losses from PL Manufacturing and the PL Manufacturing Members on August 14, 2013, at which time the omnibus agreement terminated in accordance with its terms. | |||||||||||||||||
Property, Plant, and Equipment | ' | ||||||||||||||||
Property, Plant, and Equipment | |||||||||||||||||
Property, plant and equipment are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Upon retirement or sale, we remove the cost of the asset and the related accumulated depreciation and reflect any resulting gain or loss in the statements of comprehensive income (loss). | |||||||||||||||||
Repair and maintenance expenditures incurred in order to maintain the day-to-day operation of our existing assets are charged to expense as incurred. Costs associated with acquisitions and improvements that expand existing capacity or extend useful life, including related interest costs, are capitalized. | |||||||||||||||||
Deferred Major Maintenance Costs | ' | ||||||||||||||||
Deferred Major Maintenance Costs | |||||||||||||||||
Planned major maintenance projects, also referred to as turnarounds, are periodically performed to help ensure the long-term reliability and safety of integrated plant machinery at our continuous process production facility. During the planned major maintenance project the primary activity is the replacement of the reactor catalyst as well as other major maintenance activities, some of which extend the useful life of plant machinery or increase output and/or efficiency of the facility. Our planned major maintenance project occurs approximately every three years and requires a multi-week shutdown of plant operations. Specific procedures performed during the turnaround include the disassembly, inspection and replacement or overhaul of plant machinery (pressure vessels, piping, heat exchangers, etc.) and rotating equipment (compressors, pumps, turbines, etc.), equipment recalibration and internal equipment efficiency assessments. | |||||||||||||||||
Preceding a turnaround, facilities experience decreased efficiency in resource conversion to finished products. Replacement or overhaul of equipment and items such as compressors, turbines, pumps, motors, valves, piping and other parts that have an estimated useful life of at least three years, the internal assessment of production equipment, replacement of aged catalysts, and new installation/recalibration of measurement and control devices result in increased production output and/or improved plant efficiency after the turnaround. Turnaround activities are betterments that meet at least one of the following criteria: 1) extend the equipment useful life, or 2) increase the output and/or efficiency of the equipment. As a result, we follow the deferral method of accounting for major maintenance costs; and thus, they are capitalized and amortized over the period benefited, which is generally the three-year period until the next turnaround. Deferred major maintenance costs are reported under Property, plant and equipment, net, in the consolidated balance sheet at December 31, 2013. We expense repair and maintenance activities in the period performed. | |||||||||||||||||
Intangible Assets | ' | ||||||||||||||||
Intangible Assets | |||||||||||||||||
Intangible assets include the technology license we acquired related to the propane dehydrogenation process, which is essential to the design, construction and operation of the facility, as well as emission credits. The technology license is being amortized on a straight-line basis over its estimated useful life of 25 years. The emission credits are an indefinite life intangible which is subject to an annual evaluation for impairment. | |||||||||||||||||
Deferred Financing Costs and Other Assets | ' | ||||||||||||||||
Deferred Financing Costs and Other Assets | |||||||||||||||||
Deferred financing costs and other assets as of December 31, 2013 and 2012, consist primarily of deferred financing costs incurred in connection with the closings of our credit facilities in March 2013 and March 2012, respectively. The costs associated with our credit facilities are being amortized using the effective interest method and are classified as interest expense. During 2013 we completed the refinancing of our term loan, and the remaining unamortized costs associated with the term loan were written off at that time resulting in a loss on early extinguishment of debt of $20.4 million. During 2012 we successfully completed the refinancing of our construction loan into a term loan, and the remaining unamortized costs associated with the construction loan were written off at that time resulting in a loss on early extinguishment of debt totaling $7.0 million. | |||||||||||||||||
Impairment of Long-Lived Assets | ' | ||||||||||||||||
Impairment of Long-Lived Assets | |||||||||||||||||
Long-lived assets used in operations are assessed for possible impairment when events or changes in circumstances indicate a potential significant deterioration in future cash flows projected to be generated by the assets. Individual assets are grouped for impairment purposes at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of other groups of assets, which is generally at the facility level, as we produce one principal product. | |||||||||||||||||
If, upon review, the sum of the projected undiscounted cash flows is less than the carrying value of the asset group, the carrying value is written down to the estimated fair value. The fair values of impaired assets are usually determined based on the present value of projected future cash flows using discount rates commensurate with the risks involved in the asset group, as quoted market prices in active markets are generally not available. The expected future cash flows used for impairment reviews and related fair value calculations are based on projected production volumes, sales volumes, prices and costs, taking into consideration available internal and external information at the date of review. | |||||||||||||||||
Should an impairment of assets arise, we would be required to record a charge to operations that could be material to the period reported. We have not recorded any impairment charges in any period. | |||||||||||||||||
Asset Retirement Obligation | ' | ||||||||||||||||
Asset Retirement Obligation | |||||||||||||||||
An asset and a liability are recorded at fair value when there is a legal obligation associated with the retirement of a long-lived asset and the amount can be reasonably estimated. When the liability is initially recorded, this cost is capitalized by increasing the carrying amount of the related long-lived asset. Over time, the liability is increased for changes in present value, and the capitalized cost is depreciated over the estimated useful life of the related asset. | |||||||||||||||||
Where we can reasonably estimate the asset retirement obligation, we accrue a liability based on an estimate of the timing and amount of settlement. In estimating our asset retirement obligations, we utilize several assumptions based on when the liabilities were recorded, including an inflation rate and a credit-adjusted discount rate. We record changes in these estimates based on changes in the expected amount and timing of payments to settle our obligations. | |||||||||||||||||
Environmental Costs | ' | ||||||||||||||||
Environmental Costs | |||||||||||||||||
Environmental expenditures are expensed or capitalized as appropriate, depending on future economic benefit. Expenditures that relate to an existing condition caused by past operations and that do not have future economic benefit are expensed. Liabilities for expenditures are recorded on an undiscounted basis unless the amount and timing of cash payments for the liability are fixed or determinable, in which case they are recorded on a discounted basis. Expenditures that create future benefits or contribute to future revenue generation are capitalized. | |||||||||||||||||
Income Taxes | ' | ||||||||||||||||
Income Taxes | |||||||||||||||||
We are a partnership and are treated as a partnership for federal tax purposes whereby the impact of our operations is subject to tax at the partner level. Therefore, no federal income taxes are recognized in the consolidated financial statements. The aggregate difference in the basis of our net assets for financial and tax reporting purposes cannot be readily determined because information regarding each partner’s tax attributes is not available to us. | |||||||||||||||||
As an entity operating in the State of Texas, we are subject to the Texas Margin Tax, which is an income tax. We follow the liability method of accounting for these income taxes. Deferred income tax assets and liabilities are recognized for temporary differences between the assets and liabilities for financial reporting and tax purposes. | |||||||||||||||||
We recognize the tax effects of any uncertain tax positions we may adopt if the position taken by us is more likely than not sustainable based on its technical merits. If a tax position meets such criteria, the tax effect that would be recognized by us would be the largest amount of benefit with more than a 50% chance of being realized. See Note 12 for additional information regarding our income taxes. | |||||||||||||||||
Equity-Based Compensation | ' | ||||||||||||||||
Equity-Based Compensation | |||||||||||||||||
We recognize compensation expense related to equity-based awards granted to employees based on the estimated fair value of the awards on the date of grant, net of estimated forfeitures (see Notes 13 and 14). The grant date fair value of the equity-based awards is generally recognized on a straight-line basis over the requisite service period, which is generally the vesting period of the respective awards. | |||||||||||||||||
We also account for equity-based awards granted to non-employees based on the estimated fair value of the awards. The measurement of equity-based compensation for awards granted to non-employees is subject to periodic adjustment as the awards vest, and the resulting change in value is recognized in the statement of comprehensive income (loss) during the period the related services are rendered. | |||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
We consider cash and cash equivalents, accounts receivable, accounts payable, accounts receivable-related parties, accounts payable-related parties, and accrued liabilities to be financial instruments in which the carrying amounts represent fair value because of the short-term nature of the accounts. | |||||||||||||||||
Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in a principal or most advantageous market. Fair value is a market-based measurement that is determined based on inputs, which refer broadly to assumptions that market participants use in pricing assets or liabilities. These inputs can be readily observable, market corroborated or generally unobservable inputs. The Codification establishes a hierarchical disclosure framework that ranks the quality and reliability of information used to determine fair values. The hierarchy is associated with the level of pricing observability utilized in measuring fair value and defines three levels of inputs to the fair value measurement process—quoted prices are the most reliable valuation inputs, whereas model values that include inputs based on unobservable data are the least reliable. Each fair value measurement must be assigned to a level corresponding to the lowest level input that is significant to the fair value measurement in its entirety. | |||||||||||||||||
Assets and liabilities that are carried at fair value are classified and disclosed in one of the following three categories: | |||||||||||||||||
Level 1 – Quoted market prices in active markets for identical assets and liabilities. | |||||||||||||||||
Level 2 – Observable market-based inputs or unobservable inputs that are corroborated by market data. | |||||||||||||||||
Level 3 – Unobservable inputs that are not corroborated by market data. | |||||||||||||||||
The Partnership makes certain assumptions it believes that market participants would use in pricing assets or liabilities, including assumptions about risk, and the risks inherent in the inputs to valuation techniques. Credit risk of the Partnership and its counterparties is incorporated in the valuation of assets and liabilities. The Partnership believes it uses valuation techniques that maximize the use of observable market-based inputs and minimize the use of unobservable inputs. | |||||||||||||||||
The following table presents the financial instruments that require fair value disclosure as of December 31, 2013, by level within the hierarchy: | |||||||||||||||||
Fair Value | |||||||||||||||||
(in thousands) | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Carrying Value | ||||||||||||||
Financial liabilities | |||||||||||||||||
Senior Notes | $ | — | $ | 367,401 | $ | — | $ | 365,000 | |||||||||
The following table presents the financial instruments that require fair value disclosure as of December 31, 2012: | |||||||||||||||||
Fair Value | |||||||||||||||||
(in thousands) | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Carrying Value | ||||||||||||||
Financial assets | |||||||||||||||||
Propane swaps | $ | — | $ | 2,386 | $ | — | $ | 2,386 | |||||||||
Financial liabilities | |||||||||||||||||
Variable rate debt | $ | — | $ | 345,636 | $ | — | $ | 341,294 | |||||||||
Propane swaps | $ | — | $ | 65,439 | $ | — | $ | 65,439 | |||||||||
The senior notes and variable rate debt are deemed to be Level 2 financial instruments because they are based on observable market data. At December 31, 2013 and 2012, the fair values were determined based on active trades and market corroborated data. | |||||||||||||||||
The valuation assumptions utilized to measure the fair value of our propane swaps were observable inputs based on market data obtained from independent sources and are considered Level 2 inputs. To determine the fair value of the propane swaps, we utilized quoted prices for similar assets, liabilities and market-corroborated inputs. See Note 7 for discussion regarding our propane swaps. | |||||||||||||||||
There are no financial instruments that are split across the levels, and there have been no financial instruments that transferred between the levels during the years ended December 31, 2013 and 2012. | |||||||||||||||||
Segment Reporting | ' | ||||||||||||||||
Segment Reporting | |||||||||||||||||
We operate in one segment for the production and sale of propylene and related by-products. All of our operations are located in Houston, Texas. | |||||||||||||||||
Net Income (Loss) Per Common Unit | ' | ||||||||||||||||
Net Income (Loss) Per Common Unit | |||||||||||||||||
Net income (loss) per common unit for a given period is based on the distributions that are made to the unitholders plus an allocation of undistributed net income (loss) based on provisions of the partnership agreement, divided by the weighted average number of common units outstanding. The two-class method dictates that net income (loss) for a period be reduced by the amount of distributions and that any residual amount representing undistributed net income (loss) be allocated to common unitholders and other participating unitholders to the extent that each unit may share in net income (loss) as if all of the net income (loss) for the period had been distributed in accordance with the partnership agreement. Unit-based awards granted under the PetroLogistics Long-Term Incentive Plan (the “Long-Term Incentive Plan”) are eligible for Distribution Equivalent Rights (“DERs”). To the extent that non-forfeitable DERs are awarded, the underlying nonvested unit-based awards are considered participating securities for purposes of determining net income (loss) per unit. Undistributed income (loss) is allocated to participating securities based on the proportional relationship of the weighted average number of common units and unit-based awards outstanding. Undistributed losses (including those resulting from distributions in excess of net income) are allocated to common units based on provisions of the partnership agreement. Undistributed losses are not allocated to nonvested unit-based awards as they do not participate in net losses. Distributions declared and paid in the period are treated as distributed earnings in the computation of earnings per common unit even though cash distributions are not necessarily derived from current or prior period earnings. | |||||||||||||||||
The General Partner does not have an economic interest in the Partnership and, therefore, does not participate in the Partnership’s net income (loss). Prior to the IPO, our predecessor was wholly-owned by Propylene Holdings. Accordingly, net income (loss) per common unit is not presented for periods prior to the IPO. | |||||||||||||||||
The following table provides a reconciliation of net income (loss) and the allocation of net income (loss) to the common units and the unit-based awards for purposes of computing net income (loss) per unit for the year ended December 31, 2013, (in thousands, except units and per unit data): | |||||||||||||||||
Limited Partner Units | |||||||||||||||||
Total | Common Units | Long- | |||||||||||||||
Term Incentive Plan | |||||||||||||||||
Unit-Based Awards | |||||||||||||||||
Net income | $ | 175,043 | |||||||||||||||
Less: Distributions to unitholders | 237,704 | $ | 236,443 | $ | 1,261 | ||||||||||||
Assumed allocation of undistributed net loss | (62,661 | ) | $ | (62,661 | ) | $ | - | ||||||||||
Weighted average units outstanding | 139,101,921 | 721,600 | |||||||||||||||
Net income (loss) per unit: | |||||||||||||||||
Distributed earnings | $ | 1.7 | $ | 1.75 | |||||||||||||
Undistributed net loss allocation | (0.45 | ) | - | ||||||||||||||
Net income per common unit - basic and diluted | $ | 1.25 | $ | 1.75 | |||||||||||||
The following table provides a reconciliation of net income (loss) and the allocation of net income (loss) to the common units and the restricted units for purposes of computing net income (loss) per unit for the period from May 9, 2012, the closing date of the IPO, through December 31, 2012, (in thousands, except units and per unit data): | |||||||||||||||||
Total | Limited Partner Units Common Units | Long-Term Incentive Plan Unit-Based Awards | |||||||||||||||
Net income | $ | 54,218 | |||||||||||||||
Less: Distributions to unitholders | 65,603 | $ | 65,330 | $ | 273 | ||||||||||||
Assumed allocation of undistributed net loss | $ | (11,385 | ) | $ | (11,385 | ) | $ | — | |||||||||
Weighted average units outstanding | 139,000,000 | 629,895 | |||||||||||||||
Net income (loss) per unit: | |||||||||||||||||
Distributed earnings | $ | 0.47 | $ | 0.43 | |||||||||||||
Undistributed net loss allocation | (0.08 | ) | — | ||||||||||||||
Net income per common unit - basic and diluted | $ | 0.39 | $ | 0.43 | |||||||||||||
Recently Issued Accounting Standards | ' | ||||||||||||||||
Recently Issued Accounting Standards | |||||||||||||||||
During the first quarter of 2013, we adopted Accounting Standards Update (“ASU”) ASU 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities, which requires entities to disclose both gross and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting agreement and ASU 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Asset and Liabilities, which clarifies the scope of the offsetting disclosures of ASU 2011-11. The objective of the disclosure requirement is to facilitate comparison between those entities that prepare their financial statements on the basis of U.S. GAAP and those entities that prepare their financial statements on the basis of International Financial Reporting Standards. The adoption of this standard did not have a material impact on our consolidated financial statements. | |||||||||||||||||
In February 2013, the FASB issued authoritative guidance through ASU 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, surrounding the presentation of items reclassified from accumulated other comprehensive income (loss) to net income. This guidance requires entities to disclose, either in the notes to the consolidated financial statements or parenthetically on the face of the statement that reports comprehensive income (loss), items reclassified out of accumulated other comprehensive income (loss) and into net earnings in their entirety and the effect of the reclassification on each affected statement of operations line item. In addition, for accumulated other comprehensive income (loss) reclassification items that are not reclassified in their entirety into net earnings, a cross reference to other required accounting standard disclosures is required. We adopted this guidance in the first quarter of 2013. The adoption of this guidance did not have an impact on our statement of comprehensive income (loss) or on our disclosures as we have historically had no other comprehensive income (loss) items. | |||||||||||||||||
Reclassifications | ' | ||||||||||||||||
Reclassifications | |||||||||||||||||
Certain amounts for prior periods have been reclassified in order to conform to the current period presentation. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Significant Accounting Policies [Abstract] | ' | ||||||||||||||||
Financial instruments that require fair value disclosure | ' | ||||||||||||||||
The following table presents the financial instruments that require fair value disclosure as of December 31, 2013, by level within the hierarchy: | |||||||||||||||||
Fair Value | |||||||||||||||||
(in thousands) | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Carrying Value | ||||||||||||||
Financial liabilities | |||||||||||||||||
Senior Notes | $ | — | $ | 367,401 | $ | — | $ | 365,000 | |||||||||
The following table presents the financial instruments that require fair value disclosure as of December 31, 2012: | |||||||||||||||||
Fair Value | |||||||||||||||||
(in thousands) | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Carrying Value | ||||||||||||||
Financial assets | |||||||||||||||||
Propane swaps | $ | — | $ | 2,386 | $ | — | $ | 2,386 | |||||||||
Financial liabilities | |||||||||||||||||
Variable rate debt | $ | — | $ | 345,636 | $ | — | $ | 341,294 | |||||||||
Propane swaps | $ | — | $ | 65,439 | $ | — | $ | 65,439 | |||||||||
Reconciliation of net income (loss) and allocation of net income (loss) to common units and restricted units for purposes of computing net income (loss) per unit | ' | ||||||||||||||||
The following table provides a reconciliation of net income (loss) and the allocation of net income (loss) to the common units and the unit-based awards for purposes of computing net income (loss) per unit for the year ended December 31, 2013, (in thousands, except units and per unit data): | |||||||||||||||||
Limited Partner Units | |||||||||||||||||
Total | Common Units | Long- | |||||||||||||||
Term Incentive Plan | |||||||||||||||||
Unit-Based Awards | |||||||||||||||||
Net income | $ | 175,043 | |||||||||||||||
Less: Distributions to unitholders | 237,704 | $ | 236,443 | $ | 1,261 | ||||||||||||
Assumed allocation of undistributed net loss | (62,661 | ) | $ | (62,661 | ) | $ | - | ||||||||||
Weighted average units outstanding | 139,101,921 | 721,600 | |||||||||||||||
Net income (loss) per unit: | |||||||||||||||||
Distributed earnings | $ | 1.7 | $ | 1.75 | |||||||||||||
Undistributed net loss allocation | (0.45 | ) | - | ||||||||||||||
Net income per common unit - basic and diluted | $ | 1.25 | $ | 1.75 | |||||||||||||
The following table provides a reconciliation of net income (loss) and the allocation of net income (loss) to the common units and the restricted units for purposes of computing net income (loss) per unit for the period from May 9, 2012, the closing date of the IPO, through December 31, 2012, (in thousands, except units and per unit data): | |||||||||||||||||
Total | Limited Partner Units Common Units | Long-Term Incentive Plan Unit-Based Awards | |||||||||||||||
Net income | $ | 54,218 | |||||||||||||||
Less: Distributions to unitholders | 65,603 | $ | 65,330 | $ | 273 | ||||||||||||
Assumed allocation of undistributed net loss | $ | (11,385 | ) | $ | (11,385 | ) | $ | — | |||||||||
Weighted average units outstanding | 139,000,000 | 629,895 | |||||||||||||||
Net income (loss) per unit: | |||||||||||||||||
Distributed earnings | $ | 0.47 | $ | 0.43 | |||||||||||||
Undistributed net loss allocation | (0.08 | ) | — | ||||||||||||||
Net income per common unit - basic and diluted | $ | 0.39 | $ | 0.43 |
Inventory_Tables
Inventory (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory [Abstract] | ' | ||||||||
Inventory | ' | ||||||||
Inventory consists of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Product inventory | |||||||||
Raw materials | $ | 8,356 | $ | 216 | |||||
Work in progress | 1,615 | 1,127 | |||||||
Finished product | 3,014 | 3,103 | |||||||
Total product inventory | 12,985 | 4,446 | |||||||
Maintenance spares | 7,076 | 5,683 | |||||||
Total inventory | $ | 20,061 | $ | 10,129 |
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||||||
Property, plant and equipment | ' | ||||||||||||
Property, plant, and equipment consist of the following at December 31 (in thousands): | |||||||||||||
Lives in | 2013 | 2012 | |||||||||||
Years | |||||||||||||
Pipelines and plant | 25 | $ | 44,389 | $ | 42,801 | ||||||||
Machinery and equipment | 5 to 25 | 558,420 | 550,433 | ||||||||||
Catalyst | 3 to 25 | 31,506 | 21,889 | ||||||||||
Air permits | 25 | 26,415 | 26,415 | ||||||||||
Deferred major maintenance | 3 | 15,768 | 300 | ||||||||||
Land | N/A | 4,828 | 4,597 | ||||||||||
Other | 5 to 25 | 7,674 | 8,641 | ||||||||||
689,000 | 655,076 | ||||||||||||
Less accumulated depreciation and amortization | (96,354 | ) | (72,611 | ) | |||||||||
592,646 | 582,465 | ||||||||||||
Construction in process | N/A | 19,802 | 12,806 | ||||||||||
Property, plant, and equipment, net | $ | 612,448 | $ | 595,271 |
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Intangible Assets [Abstract] | ' | ||||||||||||||||||||||||
Intangible assets | ' | ||||||||||||||||||||||||
The Company’s intangible assets at December 31 consist of the following (in thousands): | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Gross | Net | Gross | Net | ||||||||||||||||||||||
Carrying | Accumulated | Carrying | Carrying | Accumulated | Carrying | ||||||||||||||||||||
Value | Amortization | Value | Value | Amortization | Value | ||||||||||||||||||||
Licensed technology | $ | 14,181 | $ | (1,595 | ) | $ | 12,586 | $ | 14,181 | $ | (1,029 | ) | $ | 13,152 | |||||||||||
Emission Credits | 9,315 | — | 9,315 | 9,315 | — | 9,315 | |||||||||||||||||||
Total | $ | 23,496 | $ | (1,595 | ) | $ | 21,901 | $ | 23,496 | $ | (1,029 | ) | $ | 22,467 |
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Derivative Instruments [Abstract] | ' | ||||||||||||||||
Summary of fair values of derivative contracts included on consolidated balance sheets | ' | ||||||||||||||||
The following table summarizes the fair values of our derivative contracts included on our consolidated balance sheets (in thousands): | |||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||
Derivatives not designated as hedging instruments | Derivative | Derivative | Derivative | Derivative | |||||||||||||
Assets, current | Liabilities, current | Assets, current | Liabilities, current | ||||||||||||||
Propane swaps | $ | — | $ | — | $ | 2,386 | $ | 65,439 | |||||||||
Total derivatives | $ | — | $ | — | $ | 2,386 | $ | 65,439 | |||||||||
Summary of impact of derivative contracts on accompanying consolidated statements of comprehensive income (loss) | ' | ||||||||||||||||
The following table summarizes the impact of our derivative contracts on our accompanying statements of comprehensive income (loss) (in thousands): | |||||||||||||||||
Year ended | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Derivatives Not Designated as Hedging Contracts | Net Loss (Gain) Recognized in | Net Loss Recognized in | Net Loss Recognized in | ||||||||||||||
Statement of Comprehensive | Statement of Comprehensive | Statement of Comprehensive | |||||||||||||||
Income (Loss) | Income (Loss) | Income (Loss) | |||||||||||||||
Realized loss on propane swaps | $ | 61,353 | $ | 104,895 | $ | — | |||||||||||
Unrealized loss (gain) on propane swaps | (63,053 | ) | 61,386 | 1,667 | |||||||||||||
Propane swaps total | $ | (1,700 | ) | $ | 166,281 | $ | 1,667 |
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accrued Liabilities [Abstract] | ' | ||||||||
Accrued liabilities | ' | ||||||||
The following table presents information regarding our accrued liabilities at December 31, 2013 and 2012: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Accrued property taxes | $ | 8,892 | $ | — | |||||
Interest payable | 5,703 | 4,255 | |||||||
Accrued salaries and benefits | 4,674 | 3,873 | |||||||
Other | 4,899 | 6,602 | |||||||
Total accrued liabilities | $ | 24,168 | $ | 14,730 |
Asset_Retirement_Obligation_Ta
Asset Retirement Obligation (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Asset Retirement Obligation [Abstract] | ' | ||||||||
Change in asset retirement obligation | ' | ||||||||
The change in our asset retirement obligation is set forth below at December 31 (in thousands): | |||||||||
2013 | 2012 | ||||||||
Asset retirement obligation, beginning of period | $ | 1,274 | $ | 1,180 | |||||
Accretion expense | 102 | 94 | |||||||
Asset retirement obligation, end of period | $ | 1,376 | $ | 1,274 |
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Debt [Abstract] | ' | ||||||||||||
Schedule of redemption prices (expressed as percentage of principal), plus accrued and unpaid interest, if any, on the notes redeemed to the applicable redemption date | ' | ||||||||||||
Amortization and Final Maturity. The senior notes have a maturity date of April 1, 2020. Prior to April 1, 2016, we may redeem all or part of the senior notes at a redemption price equal to the sum of 100% of the principal amount of the senior notes, plus a “make-whole” premium, plus accrued and unpaid interest, if any, to the date of redemption. We may also redeem some or all of the senior notes on or after April 1, 2016, at the redemption prices (expressed as percentages of principal) set forth below, plus accrued and unpaid interest, if any, on the notes redeemed to the applicable redemption date. | |||||||||||||
Year | Percentage | ||||||||||||
2016 | 103.125 | % | |||||||||||
2017 | 101.563 | % | |||||||||||
2018 and thereafter | 100 | % | |||||||||||
Schedule of interest expense, net | ' | ||||||||||||
Interest expense, net consists of the following (in thousands): | |||||||||||||
Year Ended | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Interest expense incurred on borrowings | $ | (23,142 | ) | $ | (21,758 | ) | $ | (13,335 | ) | ||||
Amortization of discount | (315 | ) | (919 | ) | — | ||||||||
Loan commitment fees | (810 | ) | (1,014 | ) | (1,402 | ) | |||||||
Amortization of deferred financing costs | (2,134 | ) | (2,540 | ) | (3,118 | ) | |||||||
Interest income | 50 | 75 | 2 | ||||||||||
Interest expense, net | $ | (26,351 | ) | $ | (26,156 | ) | $ | (17,853 | ) |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Taxes [Abstract] | ' | ||||||||||||
Components of income tax provision | ' | ||||||||||||
Components of the income tax provision are solely related to the Texas Margin Tax and are as follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current tax expense: | |||||||||||||
Federal | $ | — | $ | — | $ | — | |||||||
State | 1,344 | 1,042 | 540 | ||||||||||
Total | 1,344 | 1,042 | 540 | ||||||||||
Deferred tax expense (benefit): | |||||||||||||
Federal | — | — | — | ||||||||||
State | 1,137 | (289 | ) | 832 | |||||||||
Total | 1,137 | (289 | ) | 832 | |||||||||
Total income tax expense | $ | 2,481 | $ | 753 | $ | 1,372 | |||||||
Reconciliation of statutory U.S. federal income tax rate to effective income tax rate | ' | ||||||||||||
The difference between the statutory U.S. federal income tax rate and our effective income tax rate is summarized as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Federal income tax rate | 35 | % | 35 | % | 35 | % | |||||||
Increase (decrease) as a result of: | |||||||||||||
Partnership earnings not subject to tax | (35 | )% | (35 | )% | (35 | )% | |||||||
Texas Margin Tax | 1.4 | % | 1.3 | % | 5.9 | % | |||||||
Effective tax rate | 1.4 | % | 1.3 | % | 5.9 | % |
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Employees [Member] | ' | ||||||||
Long-term incentive plan [Line item] | ' | ||||||||
Activity related to Long-Term Incentive Plan awards | ' | ||||||||
The following table presents activity related to our Long-Term Incentive Plan awards granted to employees during the years ended December 31, 2013 and 2012: | |||||||||
Unit-Based Awards | Weighted average | ||||||||
grant date fair value | |||||||||
Non-vested awards - December 31, 2011 | — | $ | — | ||||||
Awards granted | 874,124 | 15.24 | |||||||
Awards forfeited | (28,388 | ) | 16.6 | ||||||
Non-vested awards - December 31, 2012 | 845,736 | 15.19 | |||||||
Awards granted | — | — | |||||||
Awards vested | (280,539 | ) | 15.19 | ||||||
Awards forfeited | (21,423 | ) | 16.6 | ||||||
Non-vested awards - December 31, 2013 | 543,774 | $ | 15.14 | ||||||
Members of General Partner's Board of Directors [Member] | ' | ||||||||
Long-term incentive plan [Line item] | ' | ||||||||
Activity related to Long-Term Incentive Plan awards | ' | ||||||||
The following table presents activity related to our Long-Term Incentive Plan awards granted to members of our General Partner’s board of directors during the years ended December 31, 2013 and 2012: | |||||||||
Unit-Based Awards | Weighted average | ||||||||
grant date fair value | |||||||||
Non-vested awards - December 31, 2011 | — | $ | — | ||||||
Awards granted | 16,182 | 12.36 | |||||||
Awards forfeited | — | — | |||||||
Non-vested awards - December 31, 2012 | 16,182 | 12.36 | |||||||
Awards granted | 23,289 | 12.88 | |||||||
Awards vested | (16,182 | ) | 12.36 | ||||||
Awards forfeited | — | — | |||||||
Non-vested awards - December 31, 2013 | 23,289 | $ | 12.88 |
PL_Manufacturing_Profits_Inter1
PL Manufacturing Profits Interest Plan (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
PL Manufacturing Profits Interest Plan [Abstract] | ' | ||||||||||||||||||||||||
Profits Interest Plan compensation expense | ' | ||||||||||||||||||||||||
Total recognized equity-based compensation expense related to the Profits Interest Plan was as follows (in thousands): | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||||||
Cost of sales | $ | 402 | $ | 311 | |||||||||||||||||||||
General and administrative expense | 54,788 | 64,072 | |||||||||||||||||||||||
Total equity-based compensation expense related to the Profits Interest Plan | $ | 55,190 | $ | 64,383 | |||||||||||||||||||||
Employee Awards [Member] | ' | ||||||||||||||||||||||||
Summary of activity relating to the vested units and nonvested units | ' | ||||||||||||||||||||||||
Activity relating to Profits Interest Units | ' | ||||||||||||||||||||||||
The table below summarizes the activity relating to the employee Profits Interests Units during the year ended December 31, 2012: | |||||||||||||||||||||||||
Class B Units | Class C Units | Class D Units | |||||||||||||||||||||||
Number of | Weighted-Average | Number of | Weighted Average | Number of | Weighted-Average | ||||||||||||||||||||
Units | Grant Date | Units | Grant Date | Units | Grant Date | ||||||||||||||||||||
Fair Value | Fair Value | Fair Value | |||||||||||||||||||||||
Units outstanding at December 31, 2011 | — | $ | — | 5,695,000 | $ | 0.35 | — | $ | — | ||||||||||||||||
Units granted | — | — | — | — | — | — | |||||||||||||||||||
Units forfeited | — | — | — | — | — | — | |||||||||||||||||||
Increase in units resulting from changes in employment status at January 1, 2012 | 3,912,720 | 0.5 | 48,659,205 | 0.35 | 27,527,103 | 0.26 | |||||||||||||||||||
Units outstanding at December 31, 2012 | 3,912,720 | $ | 0.5 | 54,354,205 | $ | 0.35 | 27,527,103 | $ | 0.26 | ||||||||||||||||
The table below summarizes the activity relating to the nonvested employee Profits Interests Units granted under the Plan for the year ended December 31, 2012: | |||||||||||||||||||||||||
Class B Units | Class C Units | Class D Units | |||||||||||||||||||||||
Number of | Weighted-Average | Number of | Weighted Average | Number of | Weighted-Average | ||||||||||||||||||||
Units | Grant Date | Units | Grant Date | Units | Grant Date | ||||||||||||||||||||
Fair Value | Fair Value | Fair Value | |||||||||||||||||||||||
Nonvested units outstanding at December 31, 2011 | — | $ | — | 1,910,000 | $ | 0.35 | — | $ | — | ||||||||||||||||
Units granted | — | — | — | — | — | — | |||||||||||||||||||
Increase in nonvested units resulting from changes in employment status at January 1, 2012 | — | — | 24,329,602 | 0.35 | 13,763,551 | 0.26 | |||||||||||||||||||
Units vested | — | — | (26,239,602 | ) | 0.35 | (13,763,551 | ) | 0.26 | |||||||||||||||||
Nonvested units outstanding at December 31, 2012 | — | $ | — | — | $ | — | — | $ | — | ||||||||||||||||
Vested units at December 31, 2011 | — | $ | — | 3,785,000 | $ | 0.35 | — | $ | — | ||||||||||||||||
Units vested | — | — | 12,926,051 | 0.35 | 6,881,775 | 0.26 | |||||||||||||||||||
Increase in vested units resulting from changes in employment status at January 1, 2012 | 3,912,720 | 0.5 | 24,329,603 | 0.35 | 13,763,552 | 0.26 | |||||||||||||||||||
Units vested upon closing of the IPO | — | — | 13,313,551 | 0.35 | 6,881,776 | 0.26 | |||||||||||||||||||
Vested units at December 31, 2012 | 3,912,720 | $ | 0.5 | 54,354,205 | $ | 0.35 | 27,527,103 | $ | 0.26 | ||||||||||||||||
Non-Employee Awards [Member] | ' | ||||||||||||||||||||||||
Summary of activity relating to the vested units and nonvested units | ' | ||||||||||||||||||||||||
Activity relating to Profits Interest Units | ' | ||||||||||||||||||||||||
The table below summarizes the activity relating to the non-employee Profits Interest Units during the year ended December 31, 2012: | |||||||||||||||||||||||||
Class B Units | Class C Units | Class D Units | |||||||||||||||||||||||
Number of | Weighted-Average | Number of | Weighted Average | Number of | Weighted-Average | ||||||||||||||||||||
Units | Grant Date | Units | Grant Date | Units | Grant Date | ||||||||||||||||||||
Fair Value | Fair Value | Fair Value | |||||||||||||||||||||||
Units outstanding at December 31, 2011 | 3,912,720 | $ | 0.5 | 49,359,205 | $ | 0.35 | 27,527,103 | $ | 0.26 | ||||||||||||||||
Units granted | — | — | — | — | — | — | |||||||||||||||||||
Units forfeited | — | — | — | — | — | — | |||||||||||||||||||
Decrease in units resulting from changes in employment status at January 1, 2012 | (3,912,720 | ) | 0.5 | (48,659,205 | ) | 0.35 | (27,527,103 | ) | 0.26 | ||||||||||||||||
Units outstanding at December 31, 2012 | — | $ | — | 700,000 | $ | 0.35 | — | $ | — | ||||||||||||||||
The table below summarizes the activity relating to the nonvested non-employee Profits Interest Units under the Plan for the year ended December 31, 2012: | |||||||||||||||||||||||||
Class B Units | Class C Units | Class D Units | |||||||||||||||||||||||
Number of | Weighted-Average | Number of | Weighted Average | Number of | Weighted-Average | ||||||||||||||||||||
Units | Grant Date | Units | Grant Date | Units | Grant Date | ||||||||||||||||||||
Fair Value | Fair Value | Fair Value | |||||||||||||||||||||||
Nonvested units outstanding at December 31, 2011 | — | $ | — | 24,679,602 | $ | 0.35 | 13,763,551 | $ | 0.26 | ||||||||||||||||
Units granted | — | — | — | — | — | — | |||||||||||||||||||
Decrease in nonvested units resulting from changes in employment status at January 1, 2012 | — | — | (24,329,602 | ) | 0.35 | (13,763,551 | ) | 0.26 | |||||||||||||||||
Units vested | — | — | (350,000 | ) | 0.35 | — | — | ||||||||||||||||||
Nonvested units outstanding at December 31, 2012 | — | $ | — | — | $ | — | — | $ | — | ||||||||||||||||
Vested units at December 31, 2011 | 3,912,720 | $ | 0.5 | 24,679,603 | $ | 0.35 | 13,763,552 | $ | 0.26 | ||||||||||||||||
Units vested | — | — | 37,500 | 0.35 | — | — | |||||||||||||||||||
Decrease in vested units resulting from changes in employment status at January 1, 2012 | (3,912,720 | ) | 0.5 | (24,329,603 | ) | 0.35 | (13,763,552 | ) | 0.26 | ||||||||||||||||
Units vested upon closing of the IPO | — | — | 312,500 | 0.35 | — | — | |||||||||||||||||||
Vested units at December 31, 2012 | — | $ | — | 700,000 | $ | 0.35 | — | $ | — |
Concentration_of_Risk_Tables
Concentration of Risk (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Concentration of Risk [Abstract] | ' | ||||||||||||
Concentration of total sales to largest customers | ' | ||||||||||||
The following table presents the concentration of total sales to our largest customers: | |||||||||||||
Year Ended | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Dow Chemical Company (Dow) | 44 | % | 42 | % | 55 | % | |||||||
Total Petrochemicals USA, Inc. (Total) | 21 | % | 20 | % | 24 | % | |||||||
INEOS Olefins and Polymers USA (INEOS) | 18 | % | 18 | % | 16 | % | |||||||
LyondellBasell Industries N.V. (LyondellBasell) | 6 | % | 12 | % | — | ||||||||
Others (less than 10% individually) | 11 | % | 8 | % | 5 | % | |||||||
Total sales | 100 | % | 100 | % | 100 | % |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Commitments and Contingencies [Abstract] | ' | ||||||||||||
Schedule of information regarding propylene contracts | ' | ||||||||||||
The following table illustrates certain information regarding our propylene contracts as of December 31, 2013 (in millions of pounds): | |||||||||||||
Company | Max | Min | Ends December 31 | ||||||||||
Contracts: | |||||||||||||
Dow | 690 | 510 | 2018 | ||||||||||
Total | 300 | 240 | 2017 | ||||||||||
INEOS | 288 | 228 | 2016 | ||||||||||
LyondellBasell | 60 | 60 | 2014 | ||||||||||
BASF Corporation | 60 | 48 | 2016 | ||||||||||
Total | 1,398 | 1,086 |
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Quarterly Financial Data (Unaudited) [Abstract] | ' | ||||||||||||||||||
Quarterly financial data (unaudited) | ' | ||||||||||||||||||
Quarterly Financial Data (Unaudited) | |||||||||||||||||||
Gross | Net Income | Net Income (Loss) | |||||||||||||||||
Sales | Profit | (Loss) | per Unit | ||||||||||||||||
(In millions, except per unit amounts) | |||||||||||||||||||
2013 | |||||||||||||||||||
First Quarter | $ | 208.7 | $ | 94.6 | $ | 57.1 | $ | 0.41 | |||||||||||
Second Quarter | 159.4 | 48.3 | 41.4 | 0.29 | |||||||||||||||
Third Quarter | 198.4 | 68.5 | 55.1 | 0.39 | |||||||||||||||
Fourth Quarter | 191 | 32.9 | 21.4 | 0.15 | |||||||||||||||
2012 | |||||||||||||||||||
First Quarter | $ | 234.7 | $ | 66 | $ | (45.4 | ) | $ | N/A | ||||||||||
Second Quarter | 193.8 | 72.4 | (37.8 | ) | 0.2 | -1 | |||||||||||||
Third Quarter | 156.1 | 38.1 | 0.6 | - | |||||||||||||||
Fourth Quarter | 166.1 | 45.5 | 25.9 | 0.19 | |||||||||||||||
(1) Represents net income per unit subsequent to the IPO (May 9, 2012, through June 30, 2012). |
Organization_and_Nature_of_Ope1
Organization and Nature of Operations (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Organization and Nature of Operations [Abstract] | ' |
Owners' percentage of issued and outstanding equity interests in PL Manufacturing (in hundredths) | 100.00% |
Ownership interest held by sponsors collectively and indirectly in General Partner (in hundredths) | 84.00% |
Ownership interest held by sponsors directly and indirectly in common units (in hundredths) | 63.00% |
Significant_Accounting_Policie3
Significant Accounting Policies (Details) (USD $) | 8 Months Ended | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Prepaid Expenses and Other Current Assets | ' | ' | ' | ' |
Cash collateral deposited with counterparty on commodity derivative contracts | ' | $2,500,000 | $40,000,000 | ' |
Omnibus Agreement | ' | ' | ' | ' |
Capital contributions to the partnership by PL Manufacturing and the PL Manufacturing Members | 78,866,000 | 61,352,000 | ' | ' |
Intangible Asset | ' | ' | ' | ' |
Technology license, estimated useful life | ' | '25 years | ' | ' |
Deferred Financing Costs and Other Assets | ' | ' | ' | ' |
Loss on early extinguishment of debt | ' | 20,446,000 | 7,018,000 | 0 |
PL Propylene [Member] | ' | ' | ' | ' |
Omnibus Agreement | ' | ' | ' | ' |
Contribution to the partnership by PL Manufacturing and the PL Manufacturing Members | 47,000,000 | 93,200,000 | ' | ' |
Propane swaps [Member] | ' | ' | ' | ' |
Omnibus Agreement | ' | ' | ' | ' |
Cancellation payment to counterparty for termination of transaction | ' | 34,400,000 | ' | ' |
Remaining cancellation payment to counterparty | ' | 5,400,000 | ' | ' |
Cash deposited with the counterparty | ' | 29,000,000 | ' | ' |
Capital contributions to the partnership by PL Manufacturing and the PL Manufacturing Members | ' | 61,352,000,000 | 78,866,000,000 | ' |
Debt service reserve [Member] | ' | ' | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' | ' | ' |
Change in restricted cash | ' | ' | ' | -10,900,000 |
Major maintenance reserve [Member] | ' | ' | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' | ' | ' |
Change in restricted cash | ' | ' | ' | -3,000,000 |
Operating cash flow [Member] | ' | ' | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' | ' | ' |
Change in restricted cash | ' | ' | 34,900,000 | ' |
Financing cash flow [Member] | ' | ' | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' | ' | ' |
Change in restricted cash | ' | ' | $10,900,000 | ' |
Significant_Accounting_Policie4
Significant Accounting Policies, Derivative Instruments (Details) (USD $) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2012 | Jul. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Segment | Three month LIBOR [Member] | Three month LIBOR [Member] | Three month LIBOR [Member] | Fair Value [Member] | Fair Value [Member] | Fair Value [Member] | Fair Value [Member] | Fair Value [Member] | Fair Value [Member] | Carrying Value [Member] | Carrying Value [Member] | |
Term loan facility [Member] | 2012 Credit Facilities [Member] | 2012 Credit Facilities [Member] | Level 2 [Member] | Level 2 [Member] | Level 1 [Member] | Level 1 [Member] | Level 3 [Member] | Level 3 [Member] | ||||
Maximum [Member] | Term loan facility [Member] | Term loan facility [Member] | ||||||||||
Maximum [Member] | ||||||||||||
Financial assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Propane swaps | ' | ' | ' | ' | ' | $2,386,000 | ' | $0 | ' | $0 | ' | ' |
Propane swaps | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,386,000 |
Financial liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior notes | ' | ' | ' | ' | 367,401,000 | ' | 0 | ' | 0 | ' | 365,000,000 | ' |
Variable rate debt | ' | ' | ' | ' | ' | 345,636,000 | ' | 0 | ' | 0 | ' | 341,294,000 |
Propane swaps | ' | ' | ' | ' | ' | 65,439,000 | ' | 0 | ' | 0 | ' | 65,439,000 |
Summary of derivative instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capped interest rate (in hundredths) | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Portion of term loan capped | ' | $115,500,000 | ' | $115,500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of operating segments | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Significant_Accounting_Policie5
Significant Accounting Policies, Net Income (Loss) Per Common Unit (Details) (USD $) | 3 Months Ended | 8 Months Ended | 12 Months Ended | ||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Net income (loss) per common unit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net income | ' | ' | ' | ' | ' | ' | ' | $54,218 | $175,043 | $54,218 | |||
Less: Distribution to unitholders | ' | ' | ' | ' | ' | ' | ' | 65,603 | 237,704 | ' | |||
Assumed allocation of undistributed net loss | ' | ' | ' | ' | ' | ' | ' | -11,385 | -62,661 | ' | |||
Weighted average units outstanding (in units) | ' | ' | ' | ' | ' | ' | ' | ' | 139,101,921 | 139,000,000 | |||
Net income (loss) per unit: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net income per common unit - basic and diluted (in dollars per unit) | $0.15 | $0.39 | $0.29 | $0.41 | $0.19 | $0 | $0.20 | [1] | ' | $1.25 | [2] | $0.39 | [2] |
Common Units [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net income (loss) per common unit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Less: Distribution to unitholders | ' | ' | ' | ' | ' | ' | ' | 65,330 | 236,443 | ' | |||
Assumed allocation of undistributed net loss | ' | ' | ' | ' | ' | ' | ' | -11,385 | -62,661 | ' | |||
Weighted average units outstanding (in units) | ' | ' | ' | ' | ' | ' | ' | 139,000,000 | 139,101,921 | ' | |||
Net income (loss) per unit: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Distributed earnings (in dollars per unit) | ' | ' | ' | ' | ' | ' | ' | $0.47 | $1.70 | ' | |||
Undistributed net loss allocation (in dollars per unit) | ' | ' | ' | ' | ' | ' | ' | ($0.08) | ($0.45) | ' | |||
Net income per common unit - basic and diluted (in dollars per unit) | ' | ' | ' | ' | ' | ' | ' | $0.39 | $1.25 | ' | |||
Long-Term Incentive Plan Restricted Units [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net income (loss) per common unit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Less: Distribution to unitholders | ' | ' | ' | ' | ' | ' | ' | 273 | 1,261 | ' | |||
Assumed allocation of undistributed net loss | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | ' | |||
Weighted average units outstanding (in units) | ' | ' | ' | ' | ' | ' | ' | 629,895 | 721,600 | ' | |||
Net income (loss) per unit: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Distributed earnings (in dollars per unit) | ' | ' | ' | ' | ' | ' | ' | $0.43 | $1.75 | ' | |||
Undistributed net loss allocation (in dollars per unit) | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | ' | |||
Net income per common unit - basic and diluted (in dollars per unit) | ' | ' | ' | ' | ' | ' | ' | $0.43 | $1.75 | ' | |||
[1] | Represents net income per unit subsequent to the IPO (MayB 9, 2012, through JuneB 30, 2012). | ||||||||||||
[2] | Represents net income per common unit since the closing of the Partnershipbs initial public offering on May 9, 2012. See Note 3 to the consolidated financial statements. |
Initial_Public_Offering_Detail
Initial Public Offering (Details) (USD $) | 1 Months Ended | 8 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | 31-May-12 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Initial public offering | ' | ' | ' | ' | ' |
Net proceeds from sale of common units, after deducting underwriting discounts (in dollars) | $24,000 | $23,970 | $0 | $23,970 | $0 |
Inventory_Details
Inventory (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
lb | ||
Inventory [Abstract] | ' | ' |
Product inventory, Raw materials | $8,356 | $216 |
Product inventory, Work in progress | 1,615 | 1,127 |
Product inventory, Finished product | 3,014 | 3,103 |
Total product inventory | 12,985 | 4,446 |
Maintenance spares | 7,076 | 5,683 |
Total inventory | $20,061 | $10,129 |
Storage capacity (in pounds) | 95,000,000 | ' |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Property, plant and equipment | ' | ' | ' |
Property, plant, and equipment, gross | $689,000,000 | $655,076,000 | ' |
Less accumulated depreciation and amortization | -96,354,000 | -72,611,000 | ' |
Property, plant and equipment, before construction in process | 592,646,000 | 582,465,000 | ' |
Construction in process | 19,802,000 | 12,806,000 | ' |
Property, plant and equipment, net | 612,448,000 | 595,271,000 | ' |
Depreciation and amortization expense on property, plant and equipment included in cost of sales | 41,000,000 | 33,300,000 | 37,000,000 |
Pipelines and plant [Member] | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Lives | '25 years | ' | ' |
Property, plant, and equipment, gross | 44,389,000 | 42,801,000 | ' |
Machinery and equipment [Member] | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Property, plant, and equipment, gross | 558,420,000 | 550,433,000 | ' |
Machinery and equipment [Member] | Minimum [Member] | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Lives | '5 years | ' | ' |
Machinery and equipment [Member] | Maximum [Member] | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Lives | '25 years | ' | ' |
Catalyst [Member] | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Property, plant, and equipment, gross | 31,506,000 | 21,889,000 | ' |
Catalyst [Member] | Minimum [Member] | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Lives | '3 years | ' | ' |
Catalyst [Member] | Maximum [Member] | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Lives | '25 years | ' | ' |
Catalyst representing 93% of total cost [Member] | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Cost percentage (in hundredths) | 93.00% | ' | ' |
Catalyst representing 93% of total cost [Member] | Minimum [Member] | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Lives | '3 years | ' | ' |
Catalyst representing 93% of total cost [Member] | Maximum [Member] | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Lives | '6 years | ' | ' |
Catalyst representing 7% of total cost [Member] | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Lives | '25 years | ' | ' |
Cost percentage (in hundredths) | 7.00% | ' | ' |
Air permits [Member] | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Lives | '25 years | ' | ' |
Property, plant, and equipment, gross | 26,415,000 | 26,415,000 | ' |
Deferred major maintenance [Member] | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Lives | '3 years | ' | ' |
Property, plant, and equipment, gross | 15,768,000 | 300,000 | ' |
Land [Member] | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Property, plant, and equipment, gross | 4,828,000 | 4,597,000 | ' |
Other [Member] | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Property, plant, and equipment, gross | $7,674,000 | $8,641,000 | ' |
Other [Member] | Minimum [Member] | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Lives | '5 years | ' | ' |
Other [Member] | Maximum [Member] | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Lives | '25 years | ' | ' |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Intangible asset | ' | ' | ' |
Gross Carrying Value | $23,496,000 | $23,496,000 | ' |
Accumulated Amortization | -1,595,000 | -1,029,000 | ' |
Net Carrying Value | 21,901,000 | 22,467,000 | ' |
Estimated useful life | '25 years | ' | ' |
Amortization expense on the intangible asset for each of the next five years | ' | ' | ' |
Impairment of intangible assets | 0 | ' | ' |
Emissions Credits [Member] | ' | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' | ' |
Carry value | 9,315,000 | 9,315,000 | ' |
Licensed technology [Member] | ' | ' | ' |
Intangible asset | ' | ' | ' |
Gross Carrying Value | 14,181,000 | 14,181,000 | ' |
Accumulated Amortization | -1,595,000 | -1,029,000 | ' |
Net Carrying Value | 12,586,000 | 13,152,000 | ' |
Estimated useful life | '25 years | ' | ' |
Amortization expense | 600,000 | 500,000 | 400,000 |
Amortization expense on the intangible asset for each of the next five years | ' | ' | ' |
2014 | 600,000 | ' | ' |
2015 | 600,000 | ' | ' |
2016 | 600,000 | ' | ' |
2017 | 600,000 | ' | ' |
2018 | $600,000 | ' | ' |
Derivative_Instruments_Fair_Va
Derivative Instruments, Fair Value of Derivative Contracts (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair values of derivative contracts | ' | ' |
Derivative assets, current | $0 | $2,386 |
Derivative liabilities, current | 0 | 65,439 |
Derivatives not designated as hedging contracts [Member] | ' | ' |
Fair values of derivative contracts | ' | ' |
Derivative assets, current | 0 | 2,386 |
Derivative liabilities, current | 0 | 65,439 |
Propane swaps [Member] | Derivatives not designated as hedging contracts [Member] | ' | ' |
Fair values of derivative contracts | ' | ' |
Derivative assets, current | 0 | 2,386 |
Derivative liabilities, current | $0 | $65,439 |
Derivative_Instruments_Effect_
Derivative Instruments, Effect of Derivative Contracts on Statement of Comprehensive Income (Loss) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Effect of derivative contracts on accompanying statements of comprehensive income (loss) | ' | ' | ' |
Net Loss Recognized in Statement of Comprehensive Income (Loss) | ($1,700) | $166,281 | $1,667 |
Propane swaps [Member] | ' | ' | ' |
Effect of derivative contracts on accompanying statements of comprehensive income (loss) | ' | ' | ' |
Realized loss on propane swaps | 61,353 | 104,895 | 0 |
Unrealized loss (gain) on propane swaps | -63,053 | 61,386 | 1,667 |
Net Loss Recognized in Statement of Comprehensive Income (Loss) | ($1,700) | $166,281 | $1,667 |
Deferred_Financing_Costs_and_O1
Deferred Financing Costs and Other Assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Deferred Financing Costs and Other Assets [Abstract] | ' | ' |
Deferred financing costs, net of amortization | $12 | $9.90 |
Scheduled amortization of deferred financing costs for the next five years | ' | ' |
2014 | 2.1 | ' |
2015 | 2.2 | ' |
2016 | 2.2 | ' |
2017 | 2.3 | ' |
2018 | $1.60 | ' |
Accrued_Liabilities_Details
Accrued Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accrued Liabilities [Abstract] | ' | ' |
Accrued property taxes | $8,892 | $0 |
Interest payable | 5,703 | 4,255 |
Accrued salaries and benefits | 4,674 | 3,873 |
Other | 4,899 | 6,602 |
Total accrued liabilities | $24,168 | $14,730 |
Asset_Retirement_Obligation_De
Asset Retirement Obligation (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Change in asset retirement obligation | ' | ' | ' |
Asset retirement obligation, beginning of period | $1,274 | $1,180 | ' |
Accretion expense | 102 | 94 | 88 |
Asset retirement obligation, end of period | $1,376 | $1,274 | $1,180 |
Debt_Details
Debt (Details) (USD $) | 12 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 12 Months Ended | 13 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Jul. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 28, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 27, 2012 | Mar. 31, 2012 | Mar. 27, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Mar. 27, 2012 | Mar. 27, 2013 | Jul. 31, 2012 | Jul. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Jun. 30, 2012 | Mar. 27, 2012 | Mar. 27, 2012 | |
Prime rate [Member] | Term loan facility [Member] | Term loan facility [Member] | Prior revolving credit facility [Member] | Prior Credit Facility [Member] | 2013 Credit Facilities [Member] | 2013 Credit Facilities [Member] | 2013 Credit Facilities [Member] | 2013 Credit Facilities [Member] | 2013 Credit Facilities [Member] | 2013 Credit Facilities [Member] | 2013 Credit Facilities [Member] | 2013 Credit Facilities [Member] | 2013 Credit Facilities [Member] | 2013 Credit Facilities [Member] | 2013 Credit Facilities [Member] | 2012 Credit Facilities [Member] | 2012 Credit Facilities [Member] | 2012 Credit Facilities [Member] | 2012 Credit Facilities [Member] | 2012 Credit Facilities [Member] | 2012 Credit Facilities [Member] | 2012 Credit Facilities [Member] | 2012 Credit Facilities [Member] | 2012 Credit Facilities [Member] | 2012 Credit Facilities [Member] | 2012 Credit Facilities [Member] | 2012 Credit Facilities [Member] | 2012 Credit Facilities [Member] | 2012 Credit Facilities [Member] | 2012 Credit Facilities [Member] | ||||
Three month LIBOR [Member] | Three month LIBOR [Member] | Alternate Base Rate [Member] | LIBOR [Member] | Federal funds effective base rate [Member] | Revolving credit facility [Member] | Revolving credit facility [Member] | Revolving credit facility [Member] | Revolving credit facility [Member] | Senior unsecured notes [Member] | Senior unsecured notes [Member] | Prior revolving credit facility [Member] | Alternate Base Rate [Member] | Alternate Base Rate [Member] | LIBOR [Member] | LIBOR [Member] | Term loan facility [Member] | Term loan facility [Member] | Term loan facility [Member] | Term loan facility [Member] | Term loan facility [Member] | Revolving credit facility [Member] | Revolving credit facility [Member] | Revolving credit facility [Member] | Revolving credit facility [Member] | Revolving credit facility [Member] | |||||||||
Maximum [Member] | Maximum [Member] | Maximum [Member] | Minimum [Member] | PL Propylene and its wholly owned subsidiary PetroLogistics Finance Corp [Member] | LIBOR [Member] | LIBOR [Member] | Three month LIBOR [Member] | Three month LIBOR [Member] | Maximum [Member] | Maximum [Member] | Minimum [Member] | |||||||||||||||||||||||
Maximum [Member] | ||||||||||||||||||||||||||||||||||
Interest Rate and Fee [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Description of variable rate | ' | ' | ' | 'Prime Rate | ' | ' | ' | ' | ' | 'Alternate Base Rate | 'LIBOR | 'Federal funds | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Alternate Base Rate | ' | 'LIBOR | ' | 'LIBOR | ' | ' | ' | ' | ' | ' | ' | ' |
Basis spread on variable rate (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | 3.00% | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | 4.75% | ' | 5.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective interest rate (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate, variable interest rate floor (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.25% | ' | ' | ' | ' | ' | ' | ' |
Commitment fee (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' |
Percentage of principal amount amortized (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $365,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum capacity available | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 170,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred Financing Costs-Cash Portion | ' | ' | ' | ' | ' | ' | ' | ' | 1,200,000 | ' | ' | ' | ' | ' | ' | ' | 7,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment of all borrowings outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 347,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transaction fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Third party transaction costs paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Par value of long-term debt | 365,000,000 | 337,794,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 365,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred financing costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,400,000 | ' | 3,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred Financing Costs-Noncash Portion | ' | ' | ' | ' | ' | ' | ' | ' | 10,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior Secured Leverage Ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | 4 | ' |
Covenant borrowing threshold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 120,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 |
Fixed interest rate (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity date | ' | ' | ' | ' | 27-Mar-14 | ' | ' | ' | ' | ' | ' | ' | 28-Mar-18 | ' | ' | ' | 1-Apr-20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27-Sep-16 | ' | ' | ' |
Loss on early extinguishment of debt | -20,446,000 | -7,018,000 | 0 | ' | ' | ' | 7,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -20,446,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Write off of unamortized deferred financing costs | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment of call premium and costs associated with the cancellation of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capped interest rate (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' |
Portion of term loan capped | ' | ' | ' | ' | ' | 115,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 115,500,000 | ' | ' | ' | ' | ' |
Write off of unamortized original issue discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_2012_Credit_Facility_Deta
Debt, 2012 Credit Facility (Details) (USD $) | 4 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||||||
8-May-12 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2012 | Mar. 27, 2012 | Mar. 27, 2012 | Mar. 27, 2012 | Dec. 31, 2013 | Jun. 30, 2012 | Mar. 27, 2012 | |
Credit Facility 2013 [Member] | Credit Facility 2013 [Member] | Credit Facility 2013 [Member] | Credit Facility 2013 [Member] | 2012 Credit Facilities [Member] | 2012 Credit Facilities [Member] | 2012 Credit Facilities [Member] | 2012 Credit Facilities [Member] | 2012 Credit Facilities [Member] | 2012 Credit Facilities [Member] | 2012 Credit Facilities [Member] | |||||
Revolving credit facility [Member] | Revolving credit facility [Member] | Revolving credit facility [Member] | Revolving credit facility [Member] | Revolving credit facility [Member] | Revolving credit facility [Member] | Revolving credit facility [Member] | Revolving credit facility [Member] | Term loan facility [Member] | Term loan facility [Member] | Term loan facility [Member] | |||||
Maximum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Minimum [Member] | PL Propylene [Member] | PL Propylene [Member] | PL Propylene [Member] | |||||||
Debt [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $350,000,000 |
Maximum capacity available | ' | ' | ' | ' | 170,000,000 | ' | ' | ' | ' | ' | ' | 120,000,000 | ' | ' | ' |
Refinance and cancellation of credit facilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 350,000,000 | 60,800,000 | ' |
Reimbursement to sponsor for construction capital expenditures | 250,000,000 | 0 | 250,000,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | ' |
Debt amount used for payment of associated financing costs and debt discounts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,500,000 | ' |
Remaining amount to be used for working capital | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,700,000 | ' |
Original issue discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,000,000 | ' |
Secured Leverage Ratio | ' | ' | ' | ' | ' | 2 | 2 | ' | 4 | 4 | ' | ' | ' | ' | ' |
Covenant borrowing threshold | ' | ' | ' | ' | ' | ' | ' | $120,000,000 | ' | ' | $100,000,000 | ' | ' | ' | ' |
Debt_Loss_on_Extinguishment_of
Debt, Loss on Extinguishment of Debt (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Interest expense, net [Abstract] | ' | ' | ' |
Interest expense incurred on borrowings | ($23,142) | ($21,758) | ($13,335) |
Amortization of discount | -315 | -919 | 0 |
Loan commitment fees | -810 | -1,014 | -1,402 |
Amortization of deferred financing costs | -2,134 | -2,540 | -3,118 |
Interest income | 50 | 75 | 2 |
Interest expense, net | ($26,351) | ($26,156) | ($17,853) |
2016 [Member] | ' | ' | ' |
Redemption prices (expressed as percentages of principal), plus accrued and unpaid interest, if any, on the notes redeemed to the applicable redemption date [Line item] | ' | ' | ' |
Redemption price (in hundredths) | 103.13% | ' | ' |
2017 [Member] | ' | ' | ' |
Redemption prices (expressed as percentages of principal), plus accrued and unpaid interest, if any, on the notes redeemed to the applicable redemption date [Line item] | ' | ' | ' |
Redemption price (in hundredths) | 101.56% | ' | ' |
2018 and thereafter [Member] | ' | ' | ' |
Redemption prices (expressed as percentages of principal), plus accrued and unpaid interest, if any, on the notes redeemed to the applicable redemption date [Line item] | ' | ' | ' |
Redemption price (in hundredths) | 100.00% | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Current tax expense: | ' | ' | ' |
Federal | $0 | $0 | $0 |
State | 1,344,000 | 1,042,000 | 540,000 |
Total | 1,344,000 | 1,042,000 | 540,000 |
Deferred tax expense (benefit): | ' | ' | ' |
Federal | 0 | 0 | 0 |
State | 1,137,000 | -289,000 | 832,000 |
Total | 1,137,000 | -289,000 | 832,000 |
Total income tax expense | 2,481,000 | 753,000 | 1,372,000 |
Difference between the statutory U.S. federal income tax rate and effective income tax rate [Abstract] | ' | ' | ' |
Federal income tax rate (in hundredths) | 35.00% | 35.00% | 35.00% |
Increase (decrease) as a result of: Partnership earnings not subject to tax (in hundredths) | -35.00% | -35.00% | -35.00% |
Increase (decrease) as a result of: Texas Margin Tax (in hundredths) | 1.40% | 1.30% | 5.90% |
Effective tax rate (in hundredths) | 1.40% | 1.30% | 5.90% |
Deferred income tax liabilities, related to depreciation | 1,680,000 | 543,000 | ' |
Deferred tax liabilities related to excess depreciation related to the facility for tax purposes | 1,500,000 | 1,100,000 | ' |
Deferred tax asset related to unrealized loss on the propane swaps | ' | $600,000 | ' |
Minimum [Member] | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Open Tax Year | '2009 | ' | ' |
Maximum [Member] | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Open Tax Year | '2013 | ' | ' |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 4 Months Ended | 8 Months Ended | 12 Months Ended | ||
8-May-12 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Long-term incentive plan [Line item] | ' | ' | ' | ' | ' |
Equity-based compensation expense | $11,480,000 | $45,920,000 | $4,491,000 | $57,400,000 | $64,383,000 |
Profit Sharing 401(k) Plan [Member] | Employees [Member] | ' | ' | ' | ' | ' |
Profit Sharing 401(k) Plan [Abstract] | ' | ' | ' | ' | ' |
Safe harbor matching contribution (in hundredths) | ' | ' | 100.00% | ' | ' |
Employee salary deferrals (in hundredths) | ' | ' | 6.00% | ' | ' |
Safe harbor contributions | ' | ' | 700,000 | 500,000 | 500,000 |
Profit sharing contributions | ' | ' | 1,300,000 | 1,000,000 | 800,000 |
Year of service to vest | ' | ' | '1 year | ' | ' |
Matching contribution rate (in hundredths) | ' | ' | 20.00% | ' | ' |
Number of years of employment, eligibility | ' | ' | '1 year | ' | ' |
Number of years of employment, vesting | ' | ' | '2 years | ' | ' |
2012 Long-Term Incentive Plan [Member] | ' | ' | ' | ' | ' |
Long-term incentive plan [Line item] | ' | ' | ' | ' | ' |
Maximum number of restricted units, phantom units, unit awards and other unit-based awards that can be granted (in units) | ' | ' | 5,882,352 | ' | ' |
2012 Long-Term Incentive Plan [Member] | Unit-Based Awards [Member] | ' | ' | ' | ' | ' |
Long-term incentive plan [Line item] | ' | ' | ' | ' | ' |
Vesting period | ' | ' | '3 years | ' | ' |
Equity-based compensation expense | ' | ' | 4,500,000 | 2,200,000 | ' |
2012 Long-Term Incentive Plan [Member] | Unit-Based Awards [Member] | Employees [Member] | ' | ' | ' | ' | ' |
Restricted Unit Awards (Abstract) | ' | ' | ' | ' | ' |
Non-vested units at the beginning of the period (in units) | 0 | ' | 845,736 | 0 | ' |
Awards granted (in units) | ' | ' | 0 | 874,124 | ' |
Awards vested (in units) | ' | ' | -280,539 | 0 | ' |
Awards forfeited (in units) | ' | ' | -21,423 | -28,388 | ' |
Non-vested units at the end of the period (in units) | ' | 845,736 | 543,774 | 845,736 | ' |
Weighted average grant date fair value (Abstract) | ' | ' | ' | ' | ' |
Non-vested units at the beginning of the period (in dollars per unit) | $0 | ' | $15.19 | $0 | ' |
Awards granted (in dollars per unit) | ' | ' | $0 | $15.24 | ' |
Awards vested (in dollars per unit) | ' | ' | $15.19 | ' | ' |
Awards forfeited (in dollars per unit) | ' | ' | $16.60 | $16.60 | ' |
Non-vested units at the end of the period (in dollars per unit) | ' | $15.19 | $15.14 | $15.19 | ' |
Additional disclosures (Abstract) | ' | ' | ' | ' | ' |
Aggregate intrinsic value (in dollars per unit) | ' | ' | 6,300,000 | ' | ' |
Total compensation cost related to nonvested awards that had not yet been recognized | ' | ' | 6,100,000 | ' | ' |
Weighted-average period over which unrecognized compensation cost related to nonvested awards will be recognized | ' | ' | '1 year 6 months | ' | ' |
Fair value of awards vested | ' | ' | 3,600,000 | ' | ' |
2012 Long-Term Incentive Plan [Member] | Unit-Based Awards [Member] | Members of General Partner's Board of Directors [Member] | ' | ' | ' | ' | ' |
Long-term incentive plan [Line item] | ' | ' | ' | ' | ' |
Vesting period | ' | ' | '1 year | ' | ' |
Restricted Unit Awards (Abstract) | ' | ' | ' | ' | ' |
Non-vested units at the beginning of the period (in units) | 0 | ' | 16,182 | 0 | ' |
Awards granted (in units) | ' | ' | 23,289 | 16,182 | ' |
Awards vested (in units) | ' | ' | -16,182 | 0 | ' |
Awards forfeited (in units) | ' | ' | 0 | 0 | ' |
Non-vested units at the end of the period (in units) | ' | 16,182 | 23,289 | 16,182 | ' |
Units vested at end of period (in units) | ' | 0 | ' | 0 | ' |
Weighted average grant date fair value (Abstract) | ' | ' | ' | ' | ' |
Non-vested units at the beginning of the period (in dollars per unit) | $0 | ' | $12.36 | $0 | ' |
Awards granted (in dollars per unit) | ' | ' | $12.88 | $12.36 | ' |
Awards vested (in dollars per unit) | ' | ' | $12.36 | ' | ' |
Awards forfeited (in dollars per unit) | ' | ' | $0 | $0 | ' |
Non-vested units at the end of the period (in dollars per unit) | ' | $12.36 | $12.88 | $12.36 | ' |
Additional disclosures (Abstract) | ' | ' | ' | ' | ' |
Aggregate intrinsic value (in dollars per unit) | ' | ' | 300,000 | ' | ' |
Fair value of awards vested | ' | ' | 200,000 | ' | ' |
2012 Long-Term Incentive Plan [Member] | Unit-Based Awards [Member] | Cost of sales [Member] | ' | ' | ' | ' | ' |
Long-term incentive plan [Line item] | ' | ' | ' | ' | ' |
Equity-based compensation expense | ' | ' | 2,000,000 | 1,300,000 | ' |
2012 Long-Term Incentive Plan [Member] | Unit-Based Awards [Member] | General and administrative expense [Member] | ' | ' | ' | ' | ' |
Long-term incentive plan [Line item] | ' | ' | ' | ' | ' |
Equity-based compensation expense | ' | ' | $2,500,000 | $900,000 | ' |
PL_Manufacturing_Profits_Inter2
PL Manufacturing Profits Interest Plan (Details) (USD $) | 1 Months Ended | ||
In Millions, unless otherwise specified | 31-May-12 | Mar. 31, 2009 | Mar. 31, 2009 |
Class C Profits Interest Units [Member] | Class D Profits Interest Units [Member] | ||
Vesting and unit rights [Line item] | ' | ' | ' |
Vesting period | ' | '4 years | '4 years |
Unrecognized compensation expense related to previously nonvested units, recognized in current period | $43.70 | ' | ' |
PL_Manufacturing_Profits_Inter3
PL Manufacturing Profits Interest Plan, Profits Interest Plan (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 |
Determination of equity based compensation expense [Abstract] | ' | ' |
Equity-based compensation expense related to the Profits Interest Plan | $55,190 | $64,383 |
Cost of sales [Member] | ' | ' |
Determination of equity based compensation expense [Abstract] | ' | ' |
Equity-based compensation expense related to the Profits Interest Plan | 402 | 311 |
General and administrative expense [Member] | ' | ' |
Determination of equity based compensation expense [Abstract] | ' | ' |
Equity-based compensation expense related to the Profits Interest Plan | $54,788 | $64,072 |
PL_Manufacturing_Profits_Inter4
PL Manufacturing Profits Interest Plan, Employee Awards & Nonemployee Awards (Details) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||
In Millions, except Share data, unless otherwise specified | Jun. 30, 2011 | Dec. 31, 2011 | 9-May-12 | Dec. 31, 2011 | 9-May-12 | Dec. 31, 2011 | 9-May-12 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 |
ValuationApproach | Class B Units [Member] | Class B Units [Member] | Class C Units [Member] | Class C Units [Member] | Class D Units [Member] | Class D Units [Member] | Employee Awards [Member] | Employee Awards [Member] | Employee Awards [Member] | Employee Awards [Member] | Employee Awards [Member] | Non-Employee Awards [Member] | Non-Employee Awards [Member] | Non-Employee Awards [Member] | Non-Employee Awards [Member] | Non-Employee Awards [Member] | ||
Class B Units [Member] | Class C Units [Member] | Class D Units [Member] | Class B Units [Member] | Class C Units [Member] | Class D Units [Member] | |||||||||||||
Estimates and Key Assumptions [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Probability weighting considered with respect to a delayed exit scenario (in hundredths) | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Probability weighting considered with respect to an expected initial public offering scenario (in hundredths) | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of valuation approaches | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of Profits Interest Units on a per-Unit basis (in dollars per unit) | ' | ' | $4.53 | $3.16 | $3.73 | $2.39 | $3.73 | $2.34 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated time to liquidity event | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected volatility (in hundredths) | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk-free interest rate (in hundredths) | ' | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend yield (in hundredths) | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Participant Profits Interests Units, Number of Units [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Units outstanding at the beginning of the period (in units) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 5,695,000 | 0 | ' | ' | 3,912,720 | 49,359,205 | 27,527,103 |
Awards granted (in units) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' | ' | 0 | 0 | 0 |
Units forfeited (in units) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' | ' | 0 | 0 | 0 |
Increase (Decrease) in units resulting from changes in employment status at the beginning of the period (in units) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,912,720 | 48,659,205 | 27,527,103 | ' | ' | -3,912,720 | -48,659,205 | -27,527,103 |
Units outstanding at the end of the period (in units) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,912,720 | 54,354,205 | 27,527,103 | ' | ' | 0 | 700,000 | 0 |
Participant Profits Interests Units, Weighted-Average Grant Date Fair Value [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Units outstanding at the beginning of the period (in dollars per unit) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0.35 | $0 | ' | ' | $0.50 | $0.35 | $0.26 |
Awards granted (in dollars per unit) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $0 | ' | ' | $0 | $0 | $0 |
Awards forfeited (in dollars per unit) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $0 | ' | ' | $0 | $0 | $0 |
Increase (Decrease) in units resulting from changes in employment status at the beginning of the period (in dollars per unit) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.50 | $0.35 | $0.26 | ' | ' | $0.50 | $0.35 | $0.26 |
Units outstanding at the end of the period (in dollars per unit) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.50 | $0.35 | $0.26 | ' | ' | $0 | $0.35 | $0 |
Nonvested Participant Profits Interests Units, Number of Units [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-vested units at the beginning of the period (in units) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 1,910,000 | 0 | ' | ' | 0 | 24,679,602 | 13,763,551 |
Units granted (in units) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' | ' | 0 | 0 | 0 |
Increase (Decrease) in nonvested units resulting from changes in employment status at the beginning of the period (in units) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 24,329,602 | 13,763,551 | ' | ' | 0 | -24,329,602 | -13,763,551 |
Units vested (in units) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -26,239,602 | -13,763,551 | ' | ' | 0 | -350,000 | 0 |
Non-vested units at the end of the period (in units) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' | ' | 0 | 0 | 0 |
Vested units, Number of Units [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested units outstanding at the beginning of the period (in units) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 3,785,000 | 0 | ' | ' | 3,912,720 | 24,679,603 | 13,763,552 |
Units vested (in units) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 12,926,051 | 6,881,775 | ' | ' | 0 | 37,500 | 0 |
Increase (decrease) in vested units resulting from changes in employment status at the beginning of the period (in units) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,912,720 | 24,329,603 | 13,763,552 | ' | ' | -3,912,720 | -24,329,603 | -13,763,552 |
Units vested upon closing of the IPO (in units) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 13,313,551 | 6,881,776 | ' | ' | 0 | 312,500 | 0 |
Vested units outstanding at the end of the period (in units) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,912,720 | 54,354,205 | 27,527,103 | ' | ' | 0 | 700,000 | 0 |
Nonvested Participant Profits Interests Units, Weighted-Average Grant Date Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-vested units at the beginning of the period (in dollars per unit) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0.35 | $0 | ' | ' | $0 | $0.35 | $0.26 |
Awards granted (in dollars per unit) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $0 | ' | ' | $0 | $0 | $0 |
Increase (Decrease) in nonvested units resulting from changes in employment status at the beginning of the period (in dollars per unit) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0.35 | $0.26 | ' | ' | $0 | $0.35 | $0.26 |
Units vested (in dollars per unit) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0.35 | $0.26 | ' | ' | $0 | $0.35 | $0 |
Non-vested units at the end of the period (in dollars per unit) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $0 | ' | ' | $0 | $0 | $0 |
Vested units, Weighted-Average Grant Date Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested units outstanding at the beginning of the period (in dollars per unit) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0.35 | $0 | ' | ' | $0.50 | $0.35 | $0.26 |
Units vested (in dollars per unit) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0.35 | $0.26 | ' | ' | $0 | $0.35 | $0 |
Increase (Decrease) in vested units resulting from changes in employment status at the beginning of the period (in dollars per unit) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.50 | $0.35 | $0.26 | ' | ' | $0.50 | $0.35 | $0.26 |
Units vested upon closing of the Offering (in dollars per unit) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0.35 | $0.26 | ' | ' | $0 | $0.35 | $0 |
Vested units outstanding at the end of the period (in dollars per unit) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.50 | $0.35 | $0.26 | ' | ' | $0 | $0.35 | $0 |
Additional disclosures (Abstract) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total fair value of units vested | ' | ' | ' | ' | ' | ' | ' | ' | $120.60 | $0.30 | ' | ' | ' | $1.30 | $34.80 | ' | ' | ' |
Related_Party_and_Affiliate_Tr1
Related Party and Affiliate Transactions (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 31-May-12 | |
Related party and affiliate transactions [Line item] | ' | ' | ' | ' |
Annual fee for advisory services | $0 | $667,000 | $2,000,000 | ' |
Due to related parties waived | 0 | 2,667,000 | 0 | 2,700,000 |
Affiliates of Lindsay Goldberg [Member] | ' | ' | ' | ' |
Related party and affiliate transactions [Line item] | ' | ' | ' | ' |
Amount of reimbursement paid in percentage (in hundredths) | 50.00% | ' | ' | ' |
Development costs which recorded as a reduction in development expense | 700,000 | ' | ' | ' |
Related Party Transaction, Service Fees | ' | 900,000 | 800,000 | ' |
Services utilized in connection with facility maintenance and construction activities | 2,900,000 | 1,500,000 | 2,800,000 | ' |
Lindsay Goldberg [Member] | ' | ' | ' | ' |
Related party and affiliate transactions [Line item] | ' | ' | ' | ' |
Annual fee for advisory services | ' | ' | 2,000,000 | ' |
General Partner [Member] | ' | ' | ' | ' |
Related party and affiliate transactions [Line item] | ' | ' | ' | ' |
Related Party Transaction, Service Fees | $21,900,000 | $16,600,000 | ' | ' |
Concentration_of_Risk_Details
Concentration of Risk (Details) (Sales [Member], Customer concentration risk [Member]) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Concentration of risk | ' | ' | ' |
Concentration risk (in hundredths) | 100.00% | 100.00% | 100.00% |
Dow Chemical Company (Dow) [Member] | ' | ' | ' |
Concentration of risk | ' | ' | ' |
Concentration risk (in hundredths) | 44.00% | 42.00% | 55.00% |
Total Petrochemicals USA, Inc. (Total) [Member] | ' | ' | ' |
Concentration of risk | ' | ' | ' |
Concentration risk (in hundredths) | 21.00% | 20.00% | 24.00% |
INEOS Olefins and Polymers USA (INEOS) [Member] | ' | ' | ' |
Concentration of risk | ' | ' | ' |
Concentration risk (in hundredths) | 18.00% | 18.00% | 16.00% |
LyondellBasell Industries N.V. (LyondellBasell) [Member] | ' | ' | ' |
Concentration of risk | ' | ' | ' |
Concentration risk (in hundredths) | 6.00% | 12.00% | 0.00% |
Others (less than 10% individually) [Member] | ' | ' | ' |
Concentration of risk | ' | ' | ' |
Concentration risk (in hundredths) | 11.00% | 8.00% | 5.00% |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Purchase obligations under the terms of a propylene storage contract and a nitrogen supply contract | ' | ' | ' |
2014 | $1.10 | ' | ' |
2015 | 0.6 | ' | ' |
2016 | 0.6 | ' | ' |
2017 | 0.6 | ' | ' |
2018 | 0.7 | ' | ' |
Thereafter | 1.4 | ' | ' |
Expenses incurred under long-term propylene storage and transportation contracts | 2.7 | 2.5 | 1.7 |
Expenses incurred under nitrogen supply contract | 1 | 0.9 | 0.9 |
Future lease obligation due under a lease for office space | ' | ' | ' |
2014 | 0.4 | ' | ' |
2015 | 0.4 | ' | ' |
2016 | 0.4 | ' | ' |
2017 | 0.4 | ' | ' |
2018 | 0.1 | ' | ' |
Rent expense including equipment rentals | $1.80 | $2.50 | $2.60 |
Non-cancelable lease agreement, term | '1 year | ' | ' |
Long-term market-based propylene sales agreements [Member] | Maximum [Member] | ' | ' | ' |
Commitments and contingencies [Line Items] | ' | ' | ' |
Quantities of propylene to be supplied annually (in pounds) | 1,398,000,000 | ' | ' |
Long-term market-based propylene sales agreements [Member] | Minimum [Member] | ' | ' | ' |
Commitments and contingencies [Line Items] | ' | ' | ' |
Quantities of propylene to be supplied annually (in pounds) | 1,086,000,000 | ' | ' |
Long-term market-based propylene sales agreements [Member] | Dow [Member] | ' | ' | ' |
Commitments and contingencies [Line Items] | ' | ' | ' |
Commitment, maturity date | 31-Dec-18 | ' | ' |
Long-term market-based propylene sales agreements [Member] | Dow [Member] | Maximum [Member] | ' | ' | ' |
Commitments and contingencies [Line Items] | ' | ' | ' |
Quantities of propylene to be supplied annually (in pounds) | 690,000,000 | ' | ' |
Long-term market-based propylene sales agreements [Member] | Dow [Member] | Minimum [Member] | ' | ' | ' |
Commitments and contingencies [Line Items] | ' | ' | ' |
Quantities of propylene to be supplied annually (in pounds) | 510,000,000 | ' | ' |
Long-term market-based propylene sales agreements [Member] | Total [Member] | ' | ' | ' |
Commitments and contingencies [Line Items] | ' | ' | ' |
Commitment, maturity date | 31-Dec-17 | ' | ' |
Long-term market-based propylene sales agreements [Member] | Total [Member] | Maximum [Member] | ' | ' | ' |
Commitments and contingencies [Line Items] | ' | ' | ' |
Quantities of propylene to be supplied annually (in pounds) | 300,000,000 | ' | ' |
Long-term market-based propylene sales agreements [Member] | Total [Member] | Minimum [Member] | ' | ' | ' |
Commitments and contingencies [Line Items] | ' | ' | ' |
Quantities of propylene to be supplied annually (in pounds) | 240,000,000 | ' | ' |
Long-term market-based propylene sales agreements [Member] | INEOS [Member] | ' | ' | ' |
Commitments and contingencies [Line Items] | ' | ' | ' |
Commitment, maturity date | 31-Dec-16 | ' | ' |
Long-term market-based propylene sales agreements [Member] | INEOS [Member] | Maximum [Member] | ' | ' | ' |
Commitments and contingencies [Line Items] | ' | ' | ' |
Quantities of propylene to be supplied annually (in pounds) | 288,000,000 | ' | ' |
Long-term market-based propylene sales agreements [Member] | INEOS [Member] | Minimum [Member] | ' | ' | ' |
Commitments and contingencies [Line Items] | ' | ' | ' |
Quantities of propylene to be supplied annually (in pounds) | 228,000,000 | ' | ' |
Long-term market-based propylene sales agreements [Member] | LyondellBasell [Member] | ' | ' | ' |
Commitments and contingencies [Line Items] | ' | ' | ' |
Commitment, maturity date | 31-Dec-14 | ' | ' |
Long-term market-based propylene sales agreements [Member] | LyondellBasell [Member] | Maximum [Member] | ' | ' | ' |
Commitments and contingencies [Line Items] | ' | ' | ' |
Quantities of propylene to be supplied annually (in pounds) | 60,000,000 | ' | ' |
Long-term market-based propylene sales agreements [Member] | LyondellBasell [Member] | Minimum [Member] | ' | ' | ' |
Commitments and contingencies [Line Items] | ' | ' | ' |
Quantities of propylene to be supplied annually (in pounds) | 60,000,000 | ' | ' |
Long-term market-based propylene sales agreements [Member] | BASF Corporation [Member] | ' | ' | ' |
Commitments and contingencies [Line Items] | ' | ' | ' |
Commitment, maturity date | 31-Dec-16 | ' | ' |
Long-term market-based propylene sales agreements [Member] | BASF Corporation [Member] | Maximum [Member] | ' | ' | ' |
Commitments and contingencies [Line Items] | ' | ' | ' |
Quantities of propylene to be supplied annually (in pounds) | 60,000,000 | ' | ' |
Long-term market-based propylene sales agreements [Member] | BASF Corporation [Member] | Minimum [Member] | ' | ' | ' |
Commitments and contingencies [Line Items] | ' | ' | ' |
Quantities of propylene to be supplied annually (in pounds) | 48,000,000 | ' | ' |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent Events [Member], USD $) | Feb. 25, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | Phantom Share Units (PSUs) [Member] | |
Subsequent Events [Line Items] | ' | ' |
Granted, Number of units (in units) | ' | 212,372 |
Grant date fair value, per unit (in dollars per unit) | ' | $12 |
Grant date fair value amount | ' | $2.50 |
Distribution per common unit approved for payment to common unitholders (in dollars per unit) | $0.30 | ' |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 4 Months Ended | 8 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | 8-May-12 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Quarterly Financial Data (Unaudited) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Sales | $191,000 | $198,400 | $159,400 | $208,700 | $166,100 | $156,100 | $193,800 | $234,700 | ' | ' | $757,488 | $750,653 | $614,927 | |||
Gross profit | 32,900 | 68,500 | 48,300 | 94,600 | 45,500 | 38,100 | 72,400 | 66,000 | ' | ' | 244,256 | 222,040 | 118,118 | |||
Net Income (Loss) | $21,400 | $55,100 | $41,400 | $57,100 | $25,900 | $600 | ($37,800) | ($45,400) | ($110,892) | $54,218 | $175,043 | ($56,674) | $21,924 | |||
Net Income (Loss) per Unit (in dollars per unit) | $0.15 | $0.39 | $0.29 | $0.41 | $0.19 | $0 | $0.20 | [1] | ' | ' | ' | $1.25 | [2] | $0.39 | [2] | ' |
[1] | Represents net income per unit subsequent to the IPO (MayB 9, 2012, through JuneB 30, 2012). | |||||||||||||||
[2] | Represents net income per common unit since the closing of the Partnershipbs initial public offering on May 9, 2012. See Note 3 to the consolidated financial statements. |