Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 07, 2019 | |
Cover page. | ||
Entity Central Index Key | 0001525287 | |
Current Fiscal Year End Date | --12-31 | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Document Type | 10-Q | |
Entity Registrant Name | Sprague Resources LP | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Small Business Entity | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 22,747,909 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 6,946 | $ 7,530 |
Accounts receivable, net | 158,744 | 269,908 |
Inventories | 156,079 | 259,568 |
Fair value of derivative assets | 63,041 | 153,438 |
Other current assets | 29,483 | 8,888 |
Total current assets | 414,293 | 699,332 |
Fair value of derivative assets, long-term | 17,678 | 12,344 |
Property, plant and equipment, net | 344,558 | 349,846 |
Intangibles, net | 52,122 | 59,987 |
Other assets, net | 26,495 | 8,694 |
Goodwill | 115,037 | 115,037 |
Total assets | 970,183 | 1,245,240 |
Current liabilities: | ||
Accounts payable | 81,482 | 197,995 |
Accrued liabilities | 44,863 | 65,959 |
Fair value of derivative liabilities | 47,985 | 90,151 |
Due to General Partner | 4,704 | 7,688 |
Current portion of working capital facilities | 70,060 | 154,318 |
Current portion of other obligations | 7,496 | 7,044 |
Total current liabilities | 256,590 | 523,155 |
Commitments and contingencies | ||
Long-term portion of credit agreement | 525,230 | 506,780 |
Fair value of derivative liabilities, long-term | 15,543 | 12,015 |
Other obligations, less current portion | 44,207 | 46,455 |
Operating lease liabilities, less current portion | 14,160 | |
Due to General Partner | 2,373 | 2,093 |
Deferred income taxes | 17,320 | 17,766 |
Total liabilities | 875,423 | 1,108,264 |
Unitholders’ equity: | ||
Accumulated other comprehensive loss, net of tax | (21,525) | (11,522) |
Total unitholders’ equity | 94,760 | 136,976 |
Total liabilities and unitholders’ equity | 970,183 | 1,245,240 |
Common Unitholders - Public | ||
Unitholders’ equity: | ||
Unitholders’ value | 181,621 | 196,680 |
Common Unitholders - Affiliated | ||
Unitholders’ equity: | ||
Unitholders’ value | (65,336) | (48,182) |
Working capital facilities | ||
Current liabilities: | ||
Long-term portion of credit agreement | 172,630 | 130,680 |
Acquisition facility | ||
Current liabilities: | ||
Long-term portion of credit agreement | $ 352,600 | $ 376,100 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - shares | Sep. 30, 2019 | Dec. 31, 2018 |
Common Unitholders - Public | ||
Units, issued (in units) | 10,627,629 | 10,627,629 |
Units, outstanding (in units) | 10,627,629 | 10,627,629 |
Common Unitholders - Affiliated | ||
Units, issued (in units) | 12,106,348 | 12,106,348 |
Units, outstanding (in units) | 12,106,348 | 12,106,348 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Income Statements - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Net sales | $ 582,590 | $ 618,455 | $ 2,502,916 | $ 2,691,259 |
Cost of products sold (exclusive of depreciation and amortization) | 534,420 | 581,624 | 2,302,192 | 2,462,279 |
Operating expenses | 20,461 | 21,047 | 65,325 | 66,537 |
Selling, general and administrative | 17,570 | 16,923 | 56,309 | 63,349 |
Depreciation and amortization | 8,466 | 8,343 | 25,263 | 25,146 |
Total operating costs and expenses | 580,917 | 627,937 | 2,449,089 | 2,617,311 |
Operating income (loss) | 1,673 | (9,482) | 53,827 | 73,948 |
Other income | 0 | 293 | 128 | 293 |
Interest income | 121 | 123 | 447 | 404 |
Interest expense | (9,918) | (9,073) | (31,915) | (28,369) |
(Loss) income before income taxes | (8,124) | (18,139) | 22,487 | 46,276 |
Income tax provision | (1,610) | (295) | (3,078) | (2,984) |
Net (loss) income | (9,734) | (18,434) | 19,409 | 43,292 |
Incentive distributions declared | 0 | (2,055) | (4,110) | (5,824) |
Limited partners' interest in net (loss) income | $ (9,734) | $ (20,489) | $ 15,299 | $ 37,468 |
Net (loss) income per limited partner unit: | ||||
Common - basic (in dollars per unit) | $ (0.43) | $ (0.90) | $ 0.67 | $ 1.65 |
Common - diluted (in dollars per unit) | $ (0.43) | $ (0.90) | $ 0.67 | $ 1.65 |
Units used to compute net (loss) income per limited partner unit: | ||||
Common - basic (in units) | 22,733,977 | 22,727,284 | 22,733,977 | 22,726,645 |
Common - diluted (in units) | 22,733,977 | 22,727,284 | 22,757,779 | 22,766,725 |
Distribution declared per unit (in dollars per unit) | $ 0.6675 | $ 0.6675 | $ 2.0025 | $ 1.9875 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (9,734) | $ (18,434) | $ 19,409 | $ 43,292 |
Unrealized (loss) gain on interest rate swaps | ||||
Net loss arising in the period | (1,832) | (9,776) | ||
Reclassification adjustment related to gain realized in income | (11) | (398) | ||
Net change in unrealized loss on interest rate swaps | (1,843) | (10,174) | ||
Tax effect | 14 | 79 | ||
Other comprehensive loss, net of tax, interest rate swaps | (1,829) | (10,095) | ||
Net gain arising in the period | 1,503 | 4,734 | ||
Reclassification adjustment related to gain realized in income | (619) | (1,398) | ||
Net change in unrealized gain on interest rate swaps | 884 | 3,336 | ||
Tax effect | (7) | (25) | ||
Other comprehensive income, net of tax, interest rate swaps | 877 | 3,311 | ||
Foreign currency translation adjustment | (40) | 48 | 92 | (79) |
Other comprehensive (loss) income | (1,869) | 925 | (10,003) | 3,232 |
Comprehensive (loss) income | $ (11,603) | $ (17,509) | $ 9,406 | $ 46,524 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Unitholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Accumulated Other Comprehensive Loss | Common- Public | Common- Sprague Holdings | Incentive Distribution Rights |
Beginning balance at Dec. 31, 2017 | $ 131,834 | $ (8,870) | $ 193,977 | $ (53,273) | $ 0 |
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||
Net (loss) income | 43,292 | 17,828 | 20,323 | 5,141 | |
Other comprehensive income (loss) | 3,232 | 3,232 | |||
Unit-based compensation | (91) | (43) | (48) | ||
Distributions paid | (51,391) | (22,552) | (23,698) | (5,141) | |
Units withheld for employee tax obligations | (2,508) | (1,172) | (1,336) | ||
Ending balance at Sep. 30, 2018 | 124,368 | (5,638) | 188,038 | (58,032) | 0 |
Beginning balance at Jun. 30, 2018 | 159,437 | (6,563) | 204,859 | (38,859) | 0 |
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||
Net (loss) income | (18,434) | (9,574) | (10,914) | 2,054 | |
Other comprehensive income (loss) | 925 | 925 | |||
Unit-based compensation | (335) | (157) | (178) | ||
Distributions paid | (17,225) | (7,090) | (8,081) | (2,054) | |
Ending balance at Sep. 30, 2018 | 124,368 | (5,638) | 188,038 | (58,032) | 0 |
Beginning balance at Dec. 31, 2018 | 136,976 | (11,522) | 196,680 | (48,182) | 0 |
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||
Net (loss) income | 19,409 | 6,192 | 7,052 | 6,165 | |
Other comprehensive income (loss) | (10,003) | (10,003) | |||
Unit-based compensation | 69 | 32 | 37 | ||
Distributions paid | (51,691) | (21,283) | (24,243) | (6,165) | |
Ending balance at Sep. 30, 2019 | 94,760 | (21,525) | 181,621 | (65,336) | 0 |
Beginning balance at Jun. 30, 2019 | 123,467 | (19,656) | 194,167 | (51,044) | 0 |
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||
Net (loss) income | (9,734) | (5,511) | (6,278) | 2,055 | |
Other comprehensive income (loss) | (1,869) | (1,869) | |||
Unit-based compensation | 126 | 59 | 67 | ||
Distributions paid | (17,230) | 7,094 | 8,081 | 2,055 | |
Ending balance at Sep. 30, 2019 | $ 94,760 | $ (21,525) | $ 181,621 | $ (65,336) | $ 0 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities | ||
Net income | $ 19,409 | $ 43,292 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization (includes amortization of deferred debt issuance costs) | 27,955 | 27,802 |
Loss on sale of assets | (153) | (266) |
Changes in fair value of contingent consideration | 450 | 521 |
Provision for doubtful accounts | 471 | 942 |
Non-cash unit-based compensation | 69 | (91) |
Other | 72 | 75 |
Deferred income taxes | (367) | (49) |
Changes in assets and liabilities: | ||
Accounts receivable | 110,692 | 124,901 |
Inventories | 103,489 | 123,913 |
Other assets | (17,364) | 20,185 |
Fair value of commodity derivative instruments | 36,253 | (29,649) |
Due to General Partner and affiliates | (2,705) | (5,449) |
Accounts payable, accrued liabilities and other | (147,577) | (114,825) |
Net cash provided by operating activities | 130,694 | 191,302 |
Cash flows from investing activities | ||
Purchases of property, plant and equipment | (10,398) | (13,333) |
Proceeds from sale of assets | 236 | 377 |
Net cash used in investing activities | (10,162) | (12,956) |
Cash flows from financing activities | ||
Net payments under credit agreements | (65,967) | (109,454) |
Payments on finance/capital leases, term debt, and other obligations, net of change in exchange rate | (3,470) | (3,036) |
Debt issue costs | 0 | (182) |
Distributions to unitholders | (51,691) | (51,391) |
Repurchased units withheld for employee tax obligations | 0 | (2,508) |
Net cash used in financing activities | (121,128) | (166,571) |
Effect of exchange rate changes on cash balances held in foreign currencies | 12 | 31 |
Net change in cash and cash equivalents | (584) | 11,806 |
Cash and cash equivalents, beginning of period | 7,530 | 6,815 |
Cash and cash equivalents, end of period | 6,946 | 18,621 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | 29,274 | 25,443 |
Cash paid for taxes | 6,933 | 3,497 |
Assets acquired under finance/capital lease obligations | $ 1,722 | $ 2,998 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies Partnership Businesses Sprague Resources LP (the “Partnership”) is a Delaware limited partnership formed on June 23, 2011 by Sprague Holdings and its General Partner and engages in the purchase, storage, distribution and sale of refined products and natural gas, and provides storage and handling services for a broad range of materials. Unless the context otherwise requires, references to “Sprague Resources,” and the “Partnership,” refer to Sprague Resources LP and its subsidiaries; references to the "General Partner" refer to Sprague Resources GP LLC; references to “Axel Johnson” or the "Sponsor" refer to Axel Johnson Inc. and its controlled affiliates, collectively, other than Sprague Resources, its subsidiaries and its General Partner; references to “Sprague Holdings” refer to Sprague Resources Holdings LLC, a wholly owned subsidiary of Axel Johnson and the owner of the General Partner. The Partnership owns, operates and/or controls a network of refined products and materials handling terminals located in the Northeast United States and in Quebec, Canada. The Partnership also utilizes third-party terminals in the Northeast United States through which it sells or distributes refined products pursuant to rack, exchange and throughput agreements. The Partnership has four business segments: refined products, natural gas, materials handling and other operations. • The refined products segment purchases a variety of refined products, such as heating oil, diesel fuel, residual fuel oil, kerosene, jet fuel and gasoline - primarily from refining companies, trading organizations and producers - and sells them to wholesale and commercial customers. • The natural gas segment purchases natural gas from natural gas producers and trading companies and sells and distributes natural gas to commercial and industrial customers. • The materials handling segment offloads, stores and prepares for delivery a variety of customer-owned products, including asphalt, clay slurry, salt, gypsum, crude oil, residual fuel oil, coal, petroleum coke, caustic soda, tallow, pulp, and heavy equipment. • The other operations segment primarily includes the purchase and distribution of coal and certain commercial trucking activities. See Note 2 - Revenue for a description of the Partnership's revenue activities within these business segments. As of September 30, 2019 , the Sponsor, through its ownership of Sprague Holdings, owned 12,106,348 common units representing 53% of the limited partner interest in the Partnership. Sprague Holdings also owns the General Partner, which in turn owns a non-economic interest in the Partnership. Sprague Holdings currently holds incentive distribution rights (“IDRs”) that entitle it to receive increasing percentages, up to a maximum of 50.0% , of the cash the Partnership distributes from distributable cash flow in excess of $0.474375 per unit per quarter. The maximum distribution of 50% does not include any distributions that Sprague Holdings may receive on any limited partner units that it owns. See Note 12 - Earnings Per Unit and Note 13 - Partnership Distributions. Basis of Presentation The Condensed Consolidated Financial Statements include the accounts of the Partnership and its wholly-owned subsidiaries. Intercompany transactions between the Partnership and its subsidiaries have been eliminated. The accompanying unaudited Condensed Consolidated Financial Statements were prepared in accordance with the requirements of the Securities and Exchange Commission (“SEC”) for interim financial information. As permitted under those rules, certain notes or other financial information that are normally required by U.S. generally accepted accounting principles (“GAAP”) to be included in annual financial statements have been condensed or omitted from these interim financial statements. These interim financial statements should be read in conjunction with the consolidated financial statements and related notes of the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2018 as filed with the SEC on March 14, 2019 (the “ 2018 " Annual Report”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheet and the reported net sales and expenses in the income statement. Actual results could differ from those estimates. Among the estimates made by management are the fair value of derivative assets and liabilities, valuation of contingent consideration, valuation of reporting units within the goodwill impairment assessment, and if necessary long-lived asset impairments and environmental and legal obligations. The Condensed Consolidated Financial Statements included herein reflect all normal and recurring adjustments which, in the opinion of management, are necessary for a fair presentation of the Partnership’s consolidated financial position at September 30, 2019 and December 31, 2018 , the consolidated results of operations for the three and nine months ended September 30, 2019 and 2018 , and the consolidated cash flows for the nine months ended September 30, 2019 and 2018 . The unaudited results of operations for the interim periods reported are not necessarily indicative of results to be expected for the full year. Demand for some of the Partnership’s refined petroleum products, specifically heating oil and residual oil for space heating purposes, and to a lesser extent natural gas, are generally higher during the first and fourth quarters of the calendar year which may result in significant fluctuations in the Partnership’s quarterly operating results. Significant Accounting Policies The Partnership's significant accounting policies are described in Note 1 - Description of Business and Summary of Significant Accounting Policies in the Partnership’s audited consolidated financial statements included in the 2018 Annual Report and are the same as are used in preparing these unaudited interim Condensed Consolidated Financial Statements except for the adoption of ASU 2016-02, Leases (Topic 842) which the Partnership adopted as of January 1, 2019. The adoption of Topic 842 is discussed further in Recent Accounting Pronouncements below, as well as in Note 3 - Leases. Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), which, among other things, requires lessees to recognize an obligation to make lease payments arising from a lease, measured on a discounted basis, and a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. Expenses are recognized in the consolidated income statements in a manner similar to prior accounting guidance. The Partnership made an accounting policy election to not recognize an asset and liability for leases with a term of twelve months or less. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Partnership adopted this new accounting standard using a modified retrospective approach, which applies the provisions of the new guidance as of January 1, 2019 without adjusting the comparative periods presented. See Note 3 - Leases for further information. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses rather than incurred losses to estimate credit losses on certain types of financial instruments, including trade receivables. This may result in the earlier recognition of allowances for losses. The guidance is effective for interim and annual periods for fiscal years beginning after December 15, 2019, with early adoption permitted. The Partnership is currently evaluating the impact of the new standard on its Condensed Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment . The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The standard will be applied prospectively, and is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted for any impairment tests performed after January 1, 2017. In July 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . The objective of the guidance is to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. This ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The adoption of this new guidance did not have a material impact to the Partnership's consolidated financial statements. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregated Revenue In general, the Partnership's business segmentation is aligned according to the nature and economic characteristics of its products and customer relationships which provides meaningful disaggregation of each business segment's results of operations. The Partnership operates its businesses in the Northeast and Mid-Atlantic United States and Eastern Canada. The refined products segment purchases a variety of refined products, such as heating oil, diesel fuel, residual fuel oil, kerosene, jet fuel and gasoline (primarily from refining companies, trading organizations and producers), and sells them to wholesale and commercial customers. Refined products revenue-producing activities are direct sales to customers including throughput and exchange transactions. Revenue is recognized when the product is delivered. Revenue is not recognized on exchange agreements, which are entered into primarily to acquire refined products by taking delivery of products closer to the Partnership’s end markets. Rather, net differentials or fees for exchange agreements are recorded within cost of products sold (exclusive of depreciation and amortization). The natural gas segment purchases natural gas from natural gas producers and trade companies and sells and distributes natural gas to commercial and industrial customers. Natural gas revenue-producing activities are sales to customers at various points on natural gas pipelines or at local distribution companies (i.e., utilities). Natural gas sales not billed by month-end are accrued based upon gas volumes delivered. The materials handling segment offloads, stores and prepares for delivery a variety of customer-owned products. A majority of the materials handling segment revenue is generated under leasing arrangements with revenue recorded over the lease term generally on a straight-line basis. Contingent rentals are recorded as revenue only when billable under the arrangement. For materials handling contracts that are not leases, the Partnership recognizes revenue either at a point in time as services are performed or over a period of time if the services are performed in a continuous fashion over the period of the contract. The other operations segment primarily includes the purchase and distribution of coal and certain commercial trucking activities. Revenue from other operations is recognized when the product is delivered or the services are rendered. Further disaggregation of net sales by business segment and geographic destination is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net sales: Refined products Distillates $ 378,535 $ 403,186 $ 1,795,264 $ 1,890,740 Gasoline 81,777 88,536 214,933 252,852 Heavy fuel oil and asphalt 54,709 59,767 209,260 252,782 Total refined products $ 515,021 $ 551,489 $ 2,219,457 $ 2,396,374 Natural gas 48,987 46,908 221,262 235,263 Materials handling 13,119 14,711 43,913 42,077 Other operations 5,463 5,347 18,284 17,545 Net sales $ 582,590 $ 618,455 $ 2,502,916 $ 2,691,259 Net sales by Country: United States $ 519,340 $ 549,477 $ 2,322,763 $ 2,485,922 Canada 63,250 68,978 $ 180,153 205,337 Net sales $ 582,590 $ 618,455 $ 2,502,916 $ 2,691,259 Contract Balances Contract liabilities primarily relate to advances or deposits received from the Partnership's customers before revenue is recognized. These amounts are included in accrued liabilities and amounted to $6.2 million and $9.8 million as of September 30, 2019 and December 31, 2018 , respectively. A substantial portion of the contract liabilities as of December 31, 2018 remains outstanding as of September 30, 2019 as they are primarily deposits. The Partnership does not have any material contract assets as of September 30, 2019 or December 31, 2018 . |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases The Partnership adopted the new lease standard using the required modified retrospective approach, effective January 1, 2019. The standard establishes a right-of-use ("ROU") model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. The Partnership chose to apply the transition provisions as of the period of adoption. Therefore, prior period financial information has not been adjusted and continues to be reflected in accordance with the Partnership’s historical accounting policy. The Partnership elected the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allowed the Partnership to carry forward the historical lease classification. In addition, the Partnership elected the practical expedient not to apply the recognition requirements in the lease standard to short-term leases (a lease that at commencement date has a lease term of 12 months or less and does not contain a purchase option that it is reasonably certain to exercise) and the practical expedient that permits lessees to make an accounting policy election (by class of underlying asset) to account for each separate lease component of a contract and its associated non-lease components as a single lease component. The adoption of the new standard resulted in the recognition of ROU assets and lease liabilities for operating leases of approximately $19.7 million and $20.0 million , respectively. In addition, capital lease assets and liabilities are now classified as finance lease ROU assets and liabilities. There was no impact on the Partnership’s Condensed Consolidated Statements of Unitholders’ Equity, Condensed Consolidated Income Statements or Condensed Consolidated Statement of Cash Flows. The Partnership determines if an arrangement is a lease at inception. The Partnership's ROU assets are included in property, plant and equipment, net and noncurrent other assets for finance leases and operating leases, respectively. Lease liabilities are included in accrued liabilities, current and noncurrent other obligations and operating lease liabilities, less current portion in the Condensed Consolidated Balance Sheets. Operating lease expense is included in operating expenses and cost of products sold while amortization expense associated with ROU assets for finance leases is included in depreciation and amortization expense. ROU assets represent the Partnership’s right to use an underlying asset for the lease term and lease liabilities represent the Partnership’s obligations to make lease payments arising from the lease. ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Partnership uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Partnership’s lease terms may include options to extend lease terms ranging from 1 to 10 years while others include options to terminate at the Partnership’s discretion. The Partnership’s operating and finance leases are primarily for time charters, facilities, railcars and equipment. The terms and conditions for these leases vary by the type of underlying asset. For the three and nine months ended September 30, 2019 , total operating lease expense was $2.2 million and $12.0 million , respectively, of which $1.1 million and $8.3 million was related to short-term leases, respectively. For the three and nine months ended September 30, 2019 , total finance lease expense was $0.5 million and $1.5 million , respectively. Operating and finance leases as of September 30, 2019 are as follows: Operating Finance ROU Assets: Other Assets, Net $ 20,547 $ — Property, Plant and Equipment, Net — 6,367 Total ROU Assets $ 20,547 $ 6,367 Lease Liabilities: Accrued Liabilities $ 6,732 $ — Current Portion of Other Obligation — 1,827 Other Obligations, Less Current Portion — 4,743 Operating Lease Liabilities, Less Current Portion 14,160 — Total Lease Liabilities $ 20,892 $ 6,570 Weighted Average Remaining Lease Term (Years) 3 4 Weighted Average Discount Rate 6.10 % 5.14 % Supplemental cash flow information related to operating leases as of September 30, 2019 is as follows: September 30, 2019 Cash paid for operating leases $ 3,705 ROU assets obtained in exchange for new lease liabilities $ 4,057 Maturities of operating and finance lease liabilities as of September 30, 2019 are as follows: Operating Finance Remaining 2019 $ 2,574 $ 530 2020 6,912 2,096 2021 6,985 1,841 2022 3,854 1,657 2023 1,125 965 Thereafter 1,359 110 Total Lease Payments 22,809 7,199 Less: Interest (1,917 ) (629 ) Total $ 20,892 $ 6,570 From a lessor perspective, the Partnership has entered into various throughput and materials handling arrangements with customers. These arrangements are accounted for as operating leases as determined by the use terms and rights outlined in the underlying agreements. The throughput contracts are agreements with refined products wholesalers that use the Partnership’s terminal facilities for a fee. The materials handling contracts are arrangements involving rentals of dedicated tanks, pads, land and small office locations for the purposes of storage, parking and other related uses. For the three and nine months ended September 30, 2019 , income related to the operating leases with the Partnership as the lessor, as described above, totaled $9.7 million and $31.2 million , respectively. The undiscounted cash flows to be received on an annual basis from operating leases as of September 30, 2019 are as follows: September 30, 2019 Remaining 2019 $ 9,041 2020 28,597 2021 20,228 2022 16,509 2023 12,013 Thereafter 57,278 Total Lease Receipts $ 143,666 |
Leases | Leases The Partnership adopted the new lease standard using the required modified retrospective approach, effective January 1, 2019. The standard establishes a right-of-use ("ROU") model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. The Partnership chose to apply the transition provisions as of the period of adoption. Therefore, prior period financial information has not been adjusted and continues to be reflected in accordance with the Partnership’s historical accounting policy. The Partnership elected the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allowed the Partnership to carry forward the historical lease classification. In addition, the Partnership elected the practical expedient not to apply the recognition requirements in the lease standard to short-term leases (a lease that at commencement date has a lease term of 12 months or less and does not contain a purchase option that it is reasonably certain to exercise) and the practical expedient that permits lessees to make an accounting policy election (by class of underlying asset) to account for each separate lease component of a contract and its associated non-lease components as a single lease component. The adoption of the new standard resulted in the recognition of ROU assets and lease liabilities for operating leases of approximately $19.7 million and $20.0 million , respectively. In addition, capital lease assets and liabilities are now classified as finance lease ROU assets and liabilities. There was no impact on the Partnership’s Condensed Consolidated Statements of Unitholders’ Equity, Condensed Consolidated Income Statements or Condensed Consolidated Statement of Cash Flows. The Partnership determines if an arrangement is a lease at inception. The Partnership's ROU assets are included in property, plant and equipment, net and noncurrent other assets for finance leases and operating leases, respectively. Lease liabilities are included in accrued liabilities, current and noncurrent other obligations and operating lease liabilities, less current portion in the Condensed Consolidated Balance Sheets. Operating lease expense is included in operating expenses and cost of products sold while amortization expense associated with ROU assets for finance leases is included in depreciation and amortization expense. ROU assets represent the Partnership’s right to use an underlying asset for the lease term and lease liabilities represent the Partnership’s obligations to make lease payments arising from the lease. ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Partnership uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Partnership’s lease terms may include options to extend lease terms ranging from 1 to 10 years while others include options to terminate at the Partnership’s discretion. The Partnership’s operating and finance leases are primarily for time charters, facilities, railcars and equipment. The terms and conditions for these leases vary by the type of underlying asset. For the three and nine months ended September 30, 2019 , total operating lease expense was $2.2 million and $12.0 million , respectively, of which $1.1 million and $8.3 million was related to short-term leases, respectively. For the three and nine months ended September 30, 2019 , total finance lease expense was $0.5 million and $1.5 million , respectively. Operating and finance leases as of September 30, 2019 are as follows: Operating Finance ROU Assets: Other Assets, Net $ 20,547 $ — Property, Plant and Equipment, Net — 6,367 Total ROU Assets $ 20,547 $ 6,367 Lease Liabilities: Accrued Liabilities $ 6,732 $ — Current Portion of Other Obligation — 1,827 Other Obligations, Less Current Portion — 4,743 Operating Lease Liabilities, Less Current Portion 14,160 — Total Lease Liabilities $ 20,892 $ 6,570 Weighted Average Remaining Lease Term (Years) 3 4 Weighted Average Discount Rate 6.10 % 5.14 % Supplemental cash flow information related to operating leases as of September 30, 2019 is as follows: September 30, 2019 Cash paid for operating leases $ 3,705 ROU assets obtained in exchange for new lease liabilities $ 4,057 Maturities of operating and finance lease liabilities as of September 30, 2019 are as follows: Operating Finance Remaining 2019 $ 2,574 $ 530 2020 6,912 2,096 2021 6,985 1,841 2022 3,854 1,657 2023 1,125 965 Thereafter 1,359 110 Total Lease Payments 22,809 7,199 Less: Interest (1,917 ) (629 ) Total $ 20,892 $ 6,570 From a lessor perspective, the Partnership has entered into various throughput and materials handling arrangements with customers. These arrangements are accounted for as operating leases as determined by the use terms and rights outlined in the underlying agreements. The throughput contracts are agreements with refined products wholesalers that use the Partnership’s terminal facilities for a fee. The materials handling contracts are arrangements involving rentals of dedicated tanks, pads, land and small office locations for the purposes of storage, parking and other related uses. For the three and nine months ended September 30, 2019 , income related to the operating leases with the Partnership as the lessor, as described above, totaled $9.7 million and $31.2 million , respectively. The undiscounted cash flows to be received on an annual basis from operating leases as of September 30, 2019 are as follows: September 30, 2019 Remaining 2019 $ 9,041 2020 28,597 2021 20,228 2022 16,509 2023 12,013 Thereafter 57,278 Total Lease Receipts $ 143,666 |
Leases | Leases The Partnership adopted the new lease standard using the required modified retrospective approach, effective January 1, 2019. The standard establishes a right-of-use ("ROU") model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. The Partnership chose to apply the transition provisions as of the period of adoption. Therefore, prior period financial information has not been adjusted and continues to be reflected in accordance with the Partnership’s historical accounting policy. The Partnership elected the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allowed the Partnership to carry forward the historical lease classification. In addition, the Partnership elected the practical expedient not to apply the recognition requirements in the lease standard to short-term leases (a lease that at commencement date has a lease term of 12 months or less and does not contain a purchase option that it is reasonably certain to exercise) and the practical expedient that permits lessees to make an accounting policy election (by class of underlying asset) to account for each separate lease component of a contract and its associated non-lease components as a single lease component. The adoption of the new standard resulted in the recognition of ROU assets and lease liabilities for operating leases of approximately $19.7 million and $20.0 million , respectively. In addition, capital lease assets and liabilities are now classified as finance lease ROU assets and liabilities. There was no impact on the Partnership’s Condensed Consolidated Statements of Unitholders’ Equity, Condensed Consolidated Income Statements or Condensed Consolidated Statement of Cash Flows. The Partnership determines if an arrangement is a lease at inception. The Partnership's ROU assets are included in property, plant and equipment, net and noncurrent other assets for finance leases and operating leases, respectively. Lease liabilities are included in accrued liabilities, current and noncurrent other obligations and operating lease liabilities, less current portion in the Condensed Consolidated Balance Sheets. Operating lease expense is included in operating expenses and cost of products sold while amortization expense associated with ROU assets for finance leases is included in depreciation and amortization expense. ROU assets represent the Partnership’s right to use an underlying asset for the lease term and lease liabilities represent the Partnership’s obligations to make lease payments arising from the lease. ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Partnership uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Partnership’s lease terms may include options to extend lease terms ranging from 1 to 10 years while others include options to terminate at the Partnership’s discretion. The Partnership’s operating and finance leases are primarily for time charters, facilities, railcars and equipment. The terms and conditions for these leases vary by the type of underlying asset. For the three and nine months ended September 30, 2019 , total operating lease expense was $2.2 million and $12.0 million , respectively, of which $1.1 million and $8.3 million was related to short-term leases, respectively. For the three and nine months ended September 30, 2019 , total finance lease expense was $0.5 million and $1.5 million , respectively. Operating and finance leases as of September 30, 2019 are as follows: Operating Finance ROU Assets: Other Assets, Net $ 20,547 $ — Property, Plant and Equipment, Net — 6,367 Total ROU Assets $ 20,547 $ 6,367 Lease Liabilities: Accrued Liabilities $ 6,732 $ — Current Portion of Other Obligation — 1,827 Other Obligations, Less Current Portion — 4,743 Operating Lease Liabilities, Less Current Portion 14,160 — Total Lease Liabilities $ 20,892 $ 6,570 Weighted Average Remaining Lease Term (Years) 3 4 Weighted Average Discount Rate 6.10 % 5.14 % Supplemental cash flow information related to operating leases as of September 30, 2019 is as follows: September 30, 2019 Cash paid for operating leases $ 3,705 ROU assets obtained in exchange for new lease liabilities $ 4,057 Maturities of operating and finance lease liabilities as of September 30, 2019 are as follows: Operating Finance Remaining 2019 $ 2,574 $ 530 2020 6,912 2,096 2021 6,985 1,841 2022 3,854 1,657 2023 1,125 965 Thereafter 1,359 110 Total Lease Payments 22,809 7,199 Less: Interest (1,917 ) (629 ) Total $ 20,892 $ 6,570 From a lessor perspective, the Partnership has entered into various throughput and materials handling arrangements with customers. These arrangements are accounted for as operating leases as determined by the use terms and rights outlined in the underlying agreements. The throughput contracts are agreements with refined products wholesalers that use the Partnership’s terminal facilities for a fee. The materials handling contracts are arrangements involving rentals of dedicated tanks, pads, land and small office locations for the purposes of storage, parking and other related uses. For the three and nine months ended September 30, 2019 , income related to the operating leases with the Partnership as the lessor, as described above, totaled $9.7 million and $31.2 million , respectively. The undiscounted cash flows to be received on an annual basis from operating leases as of September 30, 2019 are as follows: September 30, 2019 Remaining 2019 $ 9,041 2020 28,597 2021 20,228 2022 16,509 2023 12,013 Thereafter 57,278 Total Lease Receipts $ 143,666 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss, Net of Tax | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Accumulated Other Comprehensive Loss, Net of Tax | Accumulated Other Comprehensive Loss, Net of Tax Amounts included in accumulated other comprehensive loss, net of tax, consisted of the following: September 30, December 31, 2018 Fair value of interest rate swaps, net of tax $ (9,918 ) $ 176 Cumulative foreign currency translation adjustment (11,607 ) (11,698 ) Accumulated other comprehensive loss, net of tax $ (21,525 ) $ (11,522 ) |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories September 30, December 31, Petroleum and related products $ 149,428 $ 253,385 Coal 4,303 2,566 Natural gas 2,348 3,617 Inventories $ 156,079 $ 259,568 |
Credit Agreement
Credit Agreement | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Credit Agreement | Credit Agreement September 30, December 31, 2018 Working capital facilities $ 242,690 $ 284,998 Acquisition facility 352,600 376,100 Total credit agreement 595,290 661,098 Less: current portion of working capital facilities (70,060 ) (154,318 ) Long-term portion $ 525,230 $ 506,780 Sprague Operating Resources LLC and Kildair Service ULC ("Kildair"), wholly owned subsidiaries of the Partnership, are borrowers under an amended and restated revolving credit agreement (the "Credit Agreement") that matures on April 27, 2021. Obligations under the Credit Agreement are secured by substantially all of the assets of the Partnership and its subsidiaries. As of September 30, 2019 , the revolving credit facilities under the Credit Agreement contained, among other items, the following: • A U.S. dollar revolving working capital facility of up to $950.0 million , subject to borrowing base limits, to be used for working capital loans and letters of credit; • A multicurrency revolving working capital facility of up to $100.0 million , subject to borrowing base limits, to be used for working capital loans and letters of credit; • A revolving acquisition facility of up to $550.0 million , subject to the acquisition facility borrowing base limits, to be used for loans and letters of credit to fund capital expenditures and acquisitions and other general corporate purposes related to the Partnership’s current businesses, and • Subject to certain conditions including the receipt of additional commitments from lenders, the ability to increase the U.S. dollar revolving working capital facility by $250.0 million and the multicurrency revolving working capital facility by $220.0 million , subject to a maximum combined increase for both facilities of $270.0 million in the aggregate. Additionally, subject to certain conditions, the revolving acquisition facility may be increased by $200.0 million . Indebtedness under the Credit Agreement bears interest, at the borrowers’ option, at a rate per annum equal to either (i) the Eurocurrency Rate (which is the LIBOR Rate for loans denominated in U.S. dollars and CDOR for loans denominated in Canadian dollars, in each case adjusted for certain regulatory costs) for interest periods of one, two, three or six months plus a specified margin or (ii) an alternate rate plus a specified margin. For loans denominated in U.S. dollars, the alternate rate is the Base Rate which is the highest of (a) the U.S. Prime Rate as in effect from time to time, (b) the greater of the Federal Funds Effective Rate and the Overnight Bank Funding Rate as in effect from time to time plus 0.50% and (c) the one-month Eurocurrency Rate for U.S. dollars as in effect from time to time plus 1.00% . For loans denominated in Canadian dollars, the alternate rate is the Prime Rate which is the higher of (a) the Canadian Prime Rate as in effect from time to time and (b) the one-month Eurocurrency Rate for U.S. dollars as in effect from time to time plus 1.00% . The working capital facilities are subject to borrowing base reporting and as of September 30, 2019 and December 31, 2018 , had a borrowing base of $351.2 million and $512.4 million , respectively. As of September 30, 2019 and December 31, 2018 , outstanding letters of credit were $35.6 million and $65.5 million , respectively. As of September 30, 2019 , excess availability under the working capital facilities was $72.9 million and excess availability under the acquisition facilities was $197.4 million . The weighted average interest rate was 5.1% and 5.3% at September 30, 2019 and December 31, 2018 , respectively. No amounts are due under the Credit Agreement until the maturity date. However, the current portion of the Credit Agreement at September 30, 2019 and December 31, 2018 represents the amounts of the working capital facility intended to be repaid during the following twelve month period. The Credit Agreement contains certain restrictions and covenants among which include a minimum level of net working capital, fixed charge coverage and debt leverage ratios and limitations on the incurrence of indebtedness. The Credit Agreement limits the Partnership’s ability to make distributions in the event of a default as defined in the Credit Agreement. As of September 30, 2019 , the Partnership was in compliance with these covenants. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The General Partner charges the Partnership for the reimbursements of employee costs and related employee benefits and other overhead costs supporting the Partnership’s operations which amounted to $23.8 million and $24.5 million for the three months ended September 30, 2019 and 2018 , respectively, and $75.6 million and $87.4 million for the nine months ended September 30, 2019 and 2018 , respectively. Through the General Partner, the Partnership also participates in the Sponsor’s pension and other post-retirement benefits. At September 30, 2019 and December 31, 2018 , total amounts due to the General Partner with respect to these benefits and overhead costs were $7.1 million and $9.8 million , respectively. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Partnership has four reportable segments that comprise the structure used by the chief operating decision makers (CEO and CFO) to make key operating decisions and assess performance. When establishing a reporting segment, the Partnership aggregates individual operating units that are in the same line of business and have similar economic characteristics. These reportable segments are refined products, natural gas, materials handling and other operations. The Partnership's refined products segment purchases a variety of refined products, such as heating oil, diesel fuel, residual fuel oil, kerosene, jet fuel and gasoline (primarily from refining companies, trading organizations and producers), and sells them to its customers. The Partnership has wholesale customers who resell the refined products they purchase from the Partnership and commercial customers who consume the refined products they purchase. The Partnership’s wholesale customers consist of home heating oil retailers and diesel fuel and gasoline resellers. The Partnership’s commercial customers include federal and state agencies, municipalities, regional transit authorities, drill sites, large industrial companies, real estate management companies, hospitals and educational institutions. The refined products reportable segment consists of three operating segments. The Partnership's natural gas segment purchases natural gas from natural gas producers and trading companies and sells and distributes natural gas to commercial and industrial customers primarily in the Northeast and Mid-Atlantic United States. The natural gas reportable segment consists of one operating segment. The Partnership's materials handling segment offloads, stores, and prepares for delivery a variety of customer-owned products, including asphalt, clay slurry, salt, gypsum, crude oil, residual fuel oil, coal, petroleum coke, caustic soda, tallow, pulp and heavy equipment. These services are generally provided under multi-year agreements as either fee-based activities or as leasing arrangements when the right to use an identified asset (such as storage tanks or storage locations) has been conveyed in the agreement. The materials handling reportable segment consists of two operating segments. The Partnership's other operations segment primarily consists of the purchase, sale and distribution of coal, and commercial trucking activities unrelated to its refined products segment. Other operations are not reported separately as they represent less than 10% of consolidated net sales and adjusted gross margin. The other operations reporting segment consists of two operating segments. The Partnership evaluates segment performance based on adjusted gross margin, a non-GAAP measure, which is net sales less cost of products sold (exclusive of depreciation and amortization) increased by unrealized hedging losses and decreased by unrealized hedging gains, in each case with respect to refined products and natural gas inventory, and natural gas transportation contracts. Based on the way the business is managed, it is not reasonably possible for the Partnership to allocate the components of operating costs and expenses among the operating segments. There were no significant intersegment sales for any of the years presented below. The Partnership had no single customer that accounted for more than 10% of total net sales for the three and nine months ended September 30, 2019 and 2018 , respectively. The Partnership’s foreign sales, primarily sales of refined products and natural gas to its customers in Canada, were $63.3 million and $69.0 million for the three months ended September 30, 2019 and 2018 , respectively, and $180.2 million and $205.3 million for the nine months ended September 30, 2019 and 2018 , respectively. Summarized financial information for the Partnership's reportable segments is presented in the table below: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net sales: Refined products $ 515,021 $ 551,489 $ 2,219,457 $ 2,396,374 Natural gas 48,987 46,908 221,262 235,263 Materials handling 13,119 14,711 43,913 42,077 Other operations 5,463 5,347 18,284 17,545 Net sales $ 582,590 $ 618,455 $ 2,502,916 $ 2,691,259 Adjusted gross margin (1): Refined products $ 33,400 $ 26,646 $ 105,783 $ 111,652 Natural gas 3,681 3,007 40,649 46,010 Materials handling 13,101 14,683 43,886 42,100 Other operations 1,565 1,715 5,146 5,496 Adjusted gross margin 51,747 46,051 195,464 205,258 Reconciliation to operating income (loss) (2): Add/(deduct): Change in unrealized gain on inventory (3) 3,428 (3,281 ) (1,169 ) 19,309 Change in unrealized value on natural gas transportation contracts (4) (7,005 ) (5,939 ) 6,429 4,413 Operating costs and expenses not allocated to operating segments: Operating expenses (20,461 ) (21,047 ) (65,325 ) (66,537 ) Selling, general and administrative (17,570 ) (16,923 ) (56,309 ) (63,349 ) Depreciation and amortization (8,466 ) (8,343 ) (25,263 ) (25,146 ) Operating income (loss) 1,673 (9,482 ) 53,827 73,948 Other income — 293 128 293 Interest income 121 123 447 404 Interest expense (9,918 ) (9,073 ) (31,915 ) (28,369 ) Income tax provision (1,610 ) (295 ) (3,078 ) (2,984 ) Net (loss) income $ (9,734 ) $ (18,434 ) $ 19,409 $ 43,292 (1) The Partnership trades, purchases, stores and sells energy commodities that experience market value fluctuations. To manage the Partnership’s underlying performance, including its physical and derivative positions, management utilizes adjusted gross margin, which is a non-GAAP financial measure. Adjusted gross margin is also used by external users of the Partnership’s consolidated financial statements to assess the Partnership’s economic results of operations and its commodity market value reporting to lenders. In determining adjusted gross margin, the Partnership adjusts its segment results for the impact of unrealized gains and losses with regard to refined products and natural gas inventory, and natural gas transportation contracts, which are not marked to market for the purpose of recording unrealized gains or losses in net income. (2) Reconciliation of adjusted gross margin to operating income, the most directly comparable GAAP measure. (3) Inventory is valued at the lower of cost or net realizable value. The adjustment related to change in unrealized gain on inventory which is not included in net income, represents the estimated difference between inventory valued at the lower of cost or net realizable value as compared to market values. The fair value of the derivatives the Partnership uses to economically hedge its inventory declines or appreciates in value as the value of the underlying inventory appreciates or declines, which creates unrealized hedging losses (gains) with respect to the derivatives that are included in net income. (4) Represents the Partnership’s estimate of the change in fair value of the natural gas transportation contracts which are not recorded in net income until the transportation is utilized in the future (i.e., when natural gas is delivered to the customer), as these contracts are executory contracts that do not qualify as derivatives. As the fair value of the natural gas transportation contracts decline or appreciate, the offsetting physical or financial derivative will also appreciate or decline creating unmatched unrealized gains (losses). Segment Assets Due to the commingled nature and uses of the Partnership’s fixed assets, the Partnership does not track its fixed assets between its refined products and materials handling operating segments or its other operations. There are no significant fixed assets attributable to the natural gas reportable segment. As of September 30, 2019 , goodwill recorded for the refined products , natural gas , materials handling and other operations segments amounted to $71.4 million , $35.5 million , $6.9 million and $1.2 million , respectively. |
Financial Instruments and Off-B
Financial Instruments and Off-Balance Sheet Risk | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments and Off-Balance Sheet Risk | Financial Instruments and Off-Balance Sheet Risk As of September 30, 2019 and December 31, 2018 , the carrying amounts of cash, cash equivalents, accounts receivable, accounts payable and accrued liabilities approximated fair value because of the short maturity of these instruments. As of September 30, 2019 and December 31, 2018 , the carrying value of the Partnership’s margin deposits with brokers approximates fair value and consists of initial margin with futures transaction brokers, along with variation margin, which is paid or received on a daily basis, and is included in other current assets or other current liabilities. As of September 30, 2019 and December 31, 2018 , the carrying value of the Partnership’s debt approximated fair value due to the variable interest nature of these instruments. The Partnership’s deferred consideration was recorded in connection with an acquisition on April 18, 2017 using an estimated fair value discount at the time of the transaction. As of September 30, 2019 , the carrying value of the deferred consideration approximated fair value because there has been no significant subsequent change in the estimated fair value discount rate or probability of outcome. The following table presents financial assets and financial liabilities of the Partnership measured at fair value on a recurring basis: As of September 30, 2019 Fair Value Measurement Quoted Prices in Active Markets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Derivative assets: Commodity fixed forwards $ 45,711 $ — $ 45,711 $ — Futures, swaps and options 34,997 34,981 16 — Commodity derivatives 80,708 34,981 45,727 — Interest rate swaps 11 — 11 — Currency swaps — — — — Total derivative assets $ 80,719 $ 34,981 $ 45,738 $ — Derivative liabilities: Commodity fixed forwards $ 11,128 $ — $ 11,128 $ — Futures, swaps and options 42,393 42,388 5 — Commodity derivatives 53,521 42,388 11,133 — Interest rate swaps 10,007 — 10,007 — Total derivative liabilities $ 63,528 $ 42,388 $ 21,140 $ — Contingent consideration $ 8,852 $ — $ — $ 8,852 As of December 31, 2018 Fair Value Quoted Significant Significant Derivative assets: Commodity fixed forwards $ 42,893 $ — $ 42,893 $ — Futures, swaps and options 120,258 120,231 27 — Commodity derivatives 163,151 120,231 42,920 — Interest rate swaps 2,629 — 2,629 — Currency swaps 2 — 2 — Total derivative assets $ 165,782 $ 120,231 $ 45,551 $ — Derivative liabilities: Commodity fixed forwards $ 21,036 $ — $ 21,036 $ — Futures, swaps and options 78,678 78,674 4 — Commodity derivatives 99,714 78,674 21,040 — Interest rate swaps 2,452 — 2,452 — Total derivative liabilities $ 102,166 $ 78,674 $ 23,492 $ — Contingent consideration $ 8,402 $ — $ — $ 8,402 Commodity Derivative Instruments The Partnership utilizes derivative instruments consisting of futures contracts, forward contracts, swaps, options and other derivatives individually or in combination, to mitigate its exposure to fluctuations in prices of refined petroleum products and natural gas. The use of these derivative instruments within the Partnership's risk management policy may generate gains or losses from changes in market prices. The Partnership enters into futures and over-the-counter (“OTC”) transactions either on regulated exchanges or in the OTC market. Futures contracts are exchange-traded contractual commitments to either receive or deliver a standard amount or value of a commodity at a specified future date and price, with some futures contracts based on cash settlement rather than a delivery requirement. Futures exchanges typically require margin deposits as security. OTC contracts, which may or may not require margin deposits as security, involve parties that have agreed either to exchange cash payments or deliver or receive the underlying commodity at a specified future date and price. The Partnership posts initial margin with futures transaction brokers, along with variation margin, which is paid or received on a daily basis, and is included in other current assets or other current liabilities. In addition, the Partnership may either pay or receive margin based upon exposure with counterparties. Payments made by the Partnership are included in other current assets, whereas payments received by the Partnership are included in accrued liabilities. A majority of all of the Partnership’s commodity derivative contracts outstanding as of September 30, 2019 will settle prior to March 31, 2021 . The Partnership enters into some master netting arrangements to mitigate credit risk with significant counterparties. Master netting arrangements are standardized contracts that govern all specified transactions with the same counterparty and allow the Partnership to terminate all contracts upon occurrence of certain events, such as a counterparty’s default. The Partnership has elected not to offset the fair value of its derivatives, even where these arrangements provide the right to do so. The Partnership’s derivative instruments are recorded at fair value, with changes in fair value recognized in net income (loss) each period. The Partnership’s fair value measurements are determined using the market approach and includes non-performance risk and time value of money considerations. Counterparty credit is considered for receivable balances, and the Partnership’s credit is considered for payable balances. The Partnership determines fair value using a hierarchy for the inputs used to measure the fair value of financial assets and liabilities based on the source of the input, which generally range from quoted prices for identical instruments in a principal trading market (Level 1) to estimates determined using significant unobservable inputs (Level 3). Multiple inputs may be used to measure fair value; however, the level of fair value is based on the lowest significant input level within this fair value hierarchy. Details on the methods and assumptions used to determine the fair values are as follows: Fair value measurements based on Level 1 inputs: Measurements that are most observable and are based on quoted prices of identical instruments obtained from the principal markets in which they are traded. Closing prices are both readily available and representative of fair value. Market transactions occur with sufficient frequency and volume to assure liquidity. Fair value measurements based on Level 2 inputs: Measurements derived indirectly from observable inputs or from quoted prices from markets that are less liquid are considered Level 2. Measurements based on Level 2 inputs include OTC derivative instruments that are priced on an exchange traded curve, but have contractual terms that are not identical to exchange traded contracts. The Partnership utilizes fair value measurements based on Level 2 inputs for its fixed forward contracts, over-the-counter commodity price swaps, interest rate swaps and forward currency contracts. Fair value measurements based on Level 3 inputs: Measurements that are least observable are estimated from significant unobservable inputs determined from sources with little or no market activity for comparable contracts or for positions with longer durations. The Partnership utilizes fair value measurements based on Level 3 inputs for its contingent consideration liability. The Partnership does not offset fair value amounts recognized for the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) against the fair value of derivative instruments executed with the same counterparty under the same master netting arrangement. The Partnership had no right to reclaim or obligation to return cash collateral as of September 30, 2019 and December 31, 2018 . The Partnership enters into derivative contracts with counterparties, some of which are subject to master netting arrangements, which allow net settlements under certain conditions. The Partnership presents derivatives at gross fair values in the Condensed Consolidated Balance Sheets. The maximum amount of loss due to credit risk that the Partnership would incur if its counterparties failed completely to perform according to the terms of the contracts, based on the net fair value of these financial instruments, exclusive of cash collateral, was $44.2 million at September 30, 2019 . Information related to these offsetting arrangements is set forth below: As of September 30, 2019 Gross Amount Not Offset in Gross Amount of Assets/Liabilities in the Balance Sheet Financial Cash Net Amount Commodity derivative assets $ 80,708 $ (36,518 ) $ (1,511 ) $ 42,679 Interest rate swap derivative assets 11 — — 11 Currency swaps — — — — Fair value of derivative assets $ 80,719 $ (36,518 ) $ (1,511 ) $ 42,690 Commodity derivative liabilities $ (53,521 ) $ 36,518 $ 11,185 $ (5,818 ) Interest rate swap derivative liabilities (10,007 ) — — (10,007 ) Fair value of derivative liabilities $ (63,528 ) $ 36,518 $ 11,185 $ (15,825 ) As of December 31, 2018 Gross Amount Not Offset in Gross Amount of Assets/Liabilities in the Balance Sheet Financial Cash Net Amount Commodity derivative assets $ 163,151 $ (82,837 ) $ (28,529 ) $ 51,785 Interest rate swap derivative assets 2,629 — — 2,629 Currency swaps 2 — — 2 Fair value of derivative assets $ 165,782 $ (82,837 ) $ (28,529 ) $ 54,416 Commodity derivative liabilities $ (99,714 ) $ 82,837 $ 20 $ (16,857 ) Interest rate swap derivative liabilities (2,452 ) — — (2,452 ) Fair value of derivative liabilities $ (102,166 ) $ 82,837 $ 20 $ (19,309 ) The following table presents total realized and unrealized gains (losses) on derivative instruments utilized for commodity risk management purposes included in cost of products sold (exclusive of depreciation and amortization): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Refined products contracts $ 6,221 $ 1,087 $ (15,675 ) $ 10,063 Natural gas contracts (2,421 ) (6,244 ) 21,646 (9,204 ) Total $ 3,800 $ (5,157 ) $ 5,971 $ 859 There were no discretionary trading activities for the three and nine months ended September 30, 2019 and 2018 . The following table presents gross volume of commodity derivative instruments outstanding for the periods indicated: As of September 30, 2019 As of December 31, 2018 Refined Products (Barrels) Natural Gas (MMBTUs) Refined Products (Barrels) Natural Gas (MMBTUs) Long contracts 6,892 155,356 8,796 132,030 Short contracts (8,649 ) (82,302 ) (12,379 ) (72,223 ) Interest Rate Derivatives The Partnership has entered into interest rate swaps to manage its exposure to changes in interest rates on its Credit Agreement. The Partnership’s interest rate swaps hedge the interest rate risk associated with LIBOR based borrowings and have been designated as cash flow hedges. Counterparties to the Partnership’s interest rate swaps are large multinational banks and the Partnership does not believe there is a material risk of counterparty non-performance. The Partnership expects to continue to utilize interest rate swaps to hedge cash flow risk and to manage our exposure to LIBOR interest rates or its replaced equivalent for the foreseeable future. The Partnership's interest rate swap agreements outstanding as of September 30, 2019 were as follows: Beginning Ending Notional Amount January 2019 January 2020 $ 300,000 January 2020 January 2021 $ 300,000 January 2021 January 2022 $ 300,000 January 2022 January 2023 $ 250,000 There was no material ineffectiveness determined for the cash flow hedges for the three and nine months ended September 30, 2019 and 2018 . The Partnership records unrealized gains and losses on its interest rate swaps as a component of accumulated other comprehensive loss, net of tax, which is reclassified to earnings as interest expense when the payments are made. As of September 30, 2019 , the amount of unrealized losses , net of tax, expected to be reclassified to earnings during the following twelve-month period was $2.5 million . Contingent Consideration As part of the Coen Energy acquisition in 2017, the Partnership is obligated to pay contingent consideration of up to $12.0 million if certain earnings objectives during the first three years following the acquisition are met. The estimated fair value of the contingent consideration arrangement is classified within Level 3 and was determined using an income approach based on probability-weighted discounted cash flows. Under this method, a set of discrete potential future earnings was determined using internal estimates based on various revenue growth rate assumptions for each scenario. A probability was assigned to each discrete potential future earnings estimate. The resulting probability-weighted contingent consideration amounts were discounted using a weighted average discount rate of 7.0% . Changes in either the revenue growth rates, related earnings or the discount rate could result in a material change to the amount of contingent consideration accrued and such changes will be recorded in the Partnership's Condensed Consolidated Income Statements. The Partnership records changes in the estimated fair value of the contingent consideration within selling, general and administrative expenses in the Condensed Consolidated Income Statements. Changes in the contingent consideration liability are measured at fair value on a recurring basis using unobservable inputs (Level 3) and during fiscal 2019 are as follows: Contingent consideration - December 31, 2018 $ 8,402 Change in estimated fair value 450 Contingent consideration - September 30, 2019 $ 8,852 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal, Environmental and Other Proceedings The Partnership is subject to a tax on sales made in Quebec from product it imports into the province. During a recent audit by the Quebec Energy Board (QEB) of the annual filings, the Partnership initiated legal action seeking a declaration to limit the applicability of the tax to direct imports, as well as the periods subject to review. Since filing this legal action in June 2018, the Partnership has been assessed $4.5 million of tax, including interest and penalties, for the period of 2007 to 2018. Similarly, since the filing, the Partnership has been assessed $8.8 million , including a 15% penalty and interest, from the Ministry of the Environment, and the Fight Against Climate Change (known as MELCC) under separate regulation that was in effect for the period from 2007 through 2014. The Partnership is disputing this assessment on the same basis as set out in the QEB legal action described above. The Partnership has accrued an amount which it believes to be a reasonable estimate of the low end of a range of loss related to these matters and such amount is not material to the consolidated financial statements. The Partnership is involved in other various lawsuits, other proceedings and environmental matters, all of which arose in the normal course of business. The Partnership believes, based upon its examination of currently available information, its experience to date, and advice from legal counsel, that the individual and aggregate liabilities resulting from the resolution of these contingent matters will not have a material adverse impact on the Partnership’s consolidated results of operations, financial position or cash flows. |
Equity and Equity-Based Compens
Equity and Equity-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Equity and Equity-Based Compensation | Equity and Equity-Based Compensation Equity Awards - Performance-based Phantom Units The board of directors of the General Partner grants performance-based phantom unit awards to key employees that vest at the end of a performance period (generally three years ). Phantom unit awards granted since 2016 include a performance criteria that considers Sprague Holdings operating cash flow, as defined ("OCF"), over a three year period. The number of common units that may be received in settlement of each phantom unit award can range between 0 and 200% of the number of phantom units granted based on the level of OCF achieved during the vesting period. These awards are equity awards with performance and service conditions which result in compensation cost being recognized over the requisite service period once payment is determined to be probable. Compensation expense is estimated each reporting period by multiplying the number of common units underlying such awards that, based on the Partnership's estimate of OCF, are probable to vest, by the grant-date fair value of the award and is recognized over the requisite service period using the straight-line method. The number of units that the Partnership estimates are probable to vest could change over the vesting period. Any such change in estimate is recognized as a cumulative adjustment calculated as if the new estimate had been in effect from the grant date. The Partnership's long-term incentive phantom unit awards include tandem distribution equivalent rights ("DERs") which entitle the participant to a cash payment upon vesting that is equal to any cash distribution paid on a common unit between the grant date and the date the phantom units were settled. The following table presents a summary of the Partnership’s phantom unit awards subject to vesting during the nine months ended September 30, 2019 : 2019 Awards 2018 Awards 2017 Awards Units Weighted Average Grant Date Fair Value (per unit) Units Weighted Units Weighted Nonvested at December 31, 2018 — $ — 123,186 $ 23.30 119,996 $ 26.96 Granted 180,638 15.04 — — — — Forfeited (15,000 ) (15.04 ) (11,454 ) (23.30 ) (5,760 ) (27.01 ) Vested (end of performance period) — — — — — — Nonvested at September 30, 2019 165,638 $ 15.04 111,732 $ 23.30 114,236 $ 26.60 During the year ended December 31, 2018 and the nine months ended September 30, 2019 , the Partnership reduced its estimate of the number of phantom unit awards granted in 2018 and 2017 that are expected to vest and, as a result, unit-based compensation expense (income) for the nine months ended September 30, 2019 was $0.1 million as compared to $(0.1) million for the nine months ended September 30, 2018 . Unit-based compensation is included in selling, general and administrative expenses. Unrecognized compensation cost related to performance-based phantom units totaled $1.2 million as of September 30, 2019 which is expected to be recognized over a weighted average period of 27 months. Equity - Changes in Partnership Units There were no changes in the number of Partnership units outstanding during the three and nine months ended September 30, 2019 . |
Earnings Per Unit
Earnings Per Unit | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Unit | Earnings Per Unit The Partnership has identified the IDRs as participating securities and uses the two-class method when calculating the net income per unit applicable to limited partners. Earnings per unit applicable to limited partners is computed by dividing limited partners’ interest in net income, after deducting any incentive distributions, by the weighted-average number of outstanding common units. The Partnership’s net income is allocated to the limited partners in accordance with their respective ownership percentages, after giving effect to priority income allocations for incentive distributions, which are declared and paid following the close of each quarter. Earnings in excess of distributions are allocated to the limited partners based on their respective ownership interests. Diluted earnings per unit includes the effects of potentially dilutive units on the Partnership’s common units, consisting of unvested phantom units. Payments made to the Partnership’s unitholders are determined in relation to actual distributions declared and are not based on the net income allocations used in the calculation of earnings per unit. Quarterly net income per limited partner and per unit amounts are stand-alone calculations and may not be additive to year to date amounts due to rounding and changes in outstanding units. The table below shows the weighted average common units outstanding used to compute net income per common unit for the periods indicated. Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Weighted average limited partner common units - basic 22,733,977 22,727,284 22,733,977 22,726,645 Dilutive effect of unvested phantom units — — 23,802 40,080 Weighted average limited partner common units - dilutive 22,733,977 22,727,284 22,757,779 22,766,725 |
Partnership Distributions
Partnership Distributions | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Partnership Distributions | Partnership Distributions The Partnership's partnership agreement sets forth the calculation to be used to determine the amount and priority of cash distributions that the common unitholders will receive. Payments made in connection with DERs are recorded as a distribution. Cash distributions for the periods indicated were as follows: Quarter Ended Payment Date Per Unit Common IDR Total December 31, 2018 February 13, 2019 $0.6675 $ 15,175 $ 2,055 $ 17,230 March 31, 2019 May 14, 2019 $0.6675 $ 15,175 $ 2,055 $ 17,230 June 30, 2019 August 12, 2019 $0.6675 $ 15,175 $ 2,055 $ 17,230 In addition, on October 25, 2019, the Partnership declared a cash distribution for the three months ended September 30, 2019 , of $0.6675 per unit, totaling $15.2 million . Such distributions are to be paid on November 12, 2019 , to unitholders of record on November 5, 2019 . No IDR distribution was made with respect to the three months ended September 30, 2019. Please see Note 14 - Subsequent Events. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On October 25, 2019, the General Partner entered into Amendment No. 2 (“Amendment No. 2”) to the First Amended and Restated Agreement of Limited Partnership of Sprague Resources LP dated as of October 30, 2013, as amended by Amendment No. 1, dated as of December 20, 2017. Amendment No. 2 provides, generally, that if the holder(s) of a majority of the IDRs in the Partnership request that all or a portion of the amount payable with respect to a given quarter to the holders of the IDRs not be distributed to the holders of the IDRs (the “Waived IDR Amount”), then the General Partner shall not distribute the Waived IDR Amount for such quarter. On October 25, 2019, Sprague Holdings agreed to waive its right to receive payment in respect of the IDRs with respect to the quarter ended September 30, 2019. Any Waived IDR Amount (including such waiver by Sprague Holdings) may be payable in the future, without interest, if certain conditions are met. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Condensed Consolidated Financial Statements include the accounts of the Partnership and its wholly-owned subsidiaries. Intercompany transactions between the Partnership and its subsidiaries have been eliminated. The accompanying unaudited Condensed Consolidated Financial Statements were prepared in accordance with the requirements of the Securities and Exchange Commission (“SEC”) for interim financial information. As permitted under those rules, certain notes or other financial information that are normally required by U.S. generally accepted accounting principles (“GAAP”) to be included in annual financial statements have been condensed or omitted from these interim financial statements. These interim financial statements should be read in conjunction with the consolidated financial statements and related notes of the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2018 as filed with the SEC on March 14, 2019 (the “ 2018 " Annual Report”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheet and the reported net sales and expenses in the income statement. Actual results could differ from those estimates. Among the estimates made by management are the fair value of derivative assets and liabilities, valuation of contingent consideration, valuation of reporting units within the goodwill impairment assessment, and if necessary long-lived asset impairments and environmental and legal obligations. The Condensed Consolidated Financial Statements included herein reflect all normal and recurring adjustments which, in the opinion of management, are necessary for a fair presentation of the Partnership’s consolidated financial position at September 30, 2019 and December 31, 2018 , the consolidated results of operations for the three and nine months ended September 30, 2019 and 2018 , and the consolidated cash flows for the nine months ended September 30, 2019 and 2018 . The unaudited results of operations for the interim periods reported are not necessarily indicative of results to be expected for the full year. Demand for some of the Partnership’s refined petroleum products, specifically heating oil and residual oil for space heating purposes, and to a lesser extent natural gas, are generally higher during the first and fourth quarters of the calendar year which may result in significant fluctuations in the Partnership’s quarterly operating results. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), which, among other things, requires lessees to recognize an obligation to make lease payments arising from a lease, measured on a discounted basis, and a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. Expenses are recognized in the consolidated income statements in a manner similar to prior accounting guidance. The Partnership made an accounting policy election to not recognize an asset and liability for leases with a term of twelve months or less. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Partnership adopted this new accounting standard using a modified retrospective approach, which applies the provisions of the new guidance as of January 1, 2019 without adjusting the comparative periods presented. See Note 3 - Leases for further information. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses rather than incurred losses to estimate credit losses on certain types of financial instruments, including trade receivables. This may result in the earlier recognition of allowances for losses. The guidance is effective for interim and annual periods for fiscal years beginning after December 15, 2019, with early adoption permitted. The Partnership is currently evaluating the impact of the new standard on its Condensed Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment . The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The standard will be applied prospectively, and is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted for any impairment tests performed after January 1, 2017. In July 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . The objective of the guidance is to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. This ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The adoption of this new guidance did not have a material impact to the Partnership's consolidated financial statements. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Further disaggregation of net sales by business segment and geographic destination is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net sales: Refined products Distillates $ 378,535 $ 403,186 $ 1,795,264 $ 1,890,740 Gasoline 81,777 88,536 214,933 252,852 Heavy fuel oil and asphalt 54,709 59,767 209,260 252,782 Total refined products $ 515,021 $ 551,489 $ 2,219,457 $ 2,396,374 Natural gas 48,987 46,908 221,262 235,263 Materials handling 13,119 14,711 43,913 42,077 Other operations 5,463 5,347 18,284 17,545 Net sales $ 582,590 $ 618,455 $ 2,502,916 $ 2,691,259 Net sales by Country: United States $ 519,340 $ 549,477 $ 2,322,763 $ 2,485,922 Canada 63,250 68,978 $ 180,153 205,337 Net sales $ 582,590 $ 618,455 $ 2,502,916 $ 2,691,259 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Operating and Financing Leases | Operating and finance leases as of September 30, 2019 are as follows: Operating Finance ROU Assets: Other Assets, Net $ 20,547 $ — Property, Plant and Equipment, Net — 6,367 Total ROU Assets $ 20,547 $ 6,367 Lease Liabilities: Accrued Liabilities $ 6,732 $ — Current Portion of Other Obligation — 1,827 Other Obligations, Less Current Portion — 4,743 Operating Lease Liabilities, Less Current Portion 14,160 — Total Lease Liabilities $ 20,892 $ 6,570 Weighted Average Remaining Lease Term (Years) 3 4 Weighted Average Discount Rate 6.10 % 5.14 % |
Supplemental Cash Flow Information | Supplemental cash flow information related to operating leases as of September 30, 2019 is as follows: September 30, 2019 Cash paid for operating leases $ 3,705 ROU assets obtained in exchange for new lease liabilities $ 4,057 |
Maturities of Operating Lease Liabilities | Maturities of operating and finance lease liabilities as of September 30, 2019 are as follows: Operating Finance Remaining 2019 $ 2,574 $ 530 2020 6,912 2,096 2021 6,985 1,841 2022 3,854 1,657 2023 1,125 965 Thereafter 1,359 110 Total Lease Payments 22,809 7,199 Less: Interest (1,917 ) (629 ) Total $ 20,892 $ 6,570 |
Maturities of Finance Lease Liabilities | Maturities of operating and finance lease liabilities as of September 30, 2019 are as follows: Operating Finance Remaining 2019 $ 2,574 $ 530 2020 6,912 2,096 2021 6,985 1,841 2022 3,854 1,657 2023 1,125 965 Thereafter 1,359 110 Total Lease Payments 22,809 7,199 Less: Interest (1,917 ) (629 ) Total $ 20,892 $ 6,570 |
Undiscounted Cash Flows To Be Received From Operating Leases | The undiscounted cash flows to be received on an annual basis from operating leases as of September 30, 2019 are as follows: September 30, 2019 Remaining 2019 $ 9,041 2020 28,597 2021 20,228 2022 16,509 2023 12,013 Thereafter 57,278 Total Lease Receipts $ 143,666 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss, Net of Tax (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss, Net of Tax | Amounts included in accumulated other comprehensive loss, net of tax, consisted of the following: September 30, December 31, 2018 Fair value of interest rate swaps, net of tax $ (9,918 ) $ 176 Cumulative foreign currency translation adjustment (11,607 ) (11,698 ) Accumulated other comprehensive loss, net of tax $ (21,525 ) $ (11,522 ) |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | September 30, December 31, Petroleum and related products $ 149,428 $ 253,385 Coal 4,303 2,566 Natural gas 2,348 3,617 Inventories $ 156,079 $ 259,568 |
Credit Agreement (Tables)
Credit Agreement (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | September 30, December 31, 2018 Working capital facilities $ 242,690 $ 284,998 Acquisition facility 352,600 376,100 Total credit agreement 595,290 661,098 Less: current portion of working capital facilities (70,060 ) (154,318 ) Long-term portion $ 525,230 $ 506,780 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Summary of Financial Information for Partnership's Reportable Segments | Summarized financial information for the Partnership's reportable segments is presented in the table below: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net sales: Refined products $ 515,021 $ 551,489 $ 2,219,457 $ 2,396,374 Natural gas 48,987 46,908 221,262 235,263 Materials handling 13,119 14,711 43,913 42,077 Other operations 5,463 5,347 18,284 17,545 Net sales $ 582,590 $ 618,455 $ 2,502,916 $ 2,691,259 Adjusted gross margin (1): Refined products $ 33,400 $ 26,646 $ 105,783 $ 111,652 Natural gas 3,681 3,007 40,649 46,010 Materials handling 13,101 14,683 43,886 42,100 Other operations 1,565 1,715 5,146 5,496 Adjusted gross margin 51,747 46,051 195,464 205,258 Reconciliation to operating income (loss) (2): Add/(deduct): Change in unrealized gain on inventory (3) 3,428 (3,281 ) (1,169 ) 19,309 Change in unrealized value on natural gas transportation contracts (4) (7,005 ) (5,939 ) 6,429 4,413 Operating costs and expenses not allocated to operating segments: Operating expenses (20,461 ) (21,047 ) (65,325 ) (66,537 ) Selling, general and administrative (17,570 ) (16,923 ) (56,309 ) (63,349 ) Depreciation and amortization (8,466 ) (8,343 ) (25,263 ) (25,146 ) Operating income (loss) 1,673 (9,482 ) 53,827 73,948 Other income — 293 128 293 Interest income 121 123 447 404 Interest expense (9,918 ) (9,073 ) (31,915 ) (28,369 ) Income tax provision (1,610 ) (295 ) (3,078 ) (2,984 ) Net (loss) income $ (9,734 ) $ (18,434 ) $ 19,409 $ 43,292 (1) The Partnership trades, purchases, stores and sells energy commodities that experience market value fluctuations. To manage the Partnership’s underlying performance, including its physical and derivative positions, management utilizes adjusted gross margin, which is a non-GAAP financial measure. Adjusted gross margin is also used by external users of the Partnership’s consolidated financial statements to assess the Partnership’s economic results of operations and its commodity market value reporting to lenders. In determining adjusted gross margin, the Partnership adjusts its segment results for the impact of unrealized gains and losses with regard to refined products and natural gas inventory, and natural gas transportation contracts, which are not marked to market for the purpose of recording unrealized gains or losses in net income. (2) Reconciliation of adjusted gross margin to operating income, the most directly comparable GAAP measure. (3) Inventory is valued at the lower of cost or net realizable value. The adjustment related to change in unrealized gain on inventory which is not included in net income, represents the estimated difference between inventory valued at the lower of cost or net realizable value as compared to market values. The fair value of the derivatives the Partnership uses to economically hedge its inventory declines or appreciates in value as the value of the underlying inventory appreciates or declines, which creates unrealized hedging losses (gains) with respect to the derivatives that are included in net income. (4) Represents the Partnership’s estimate of the change in fair value of the natural gas transportation contracts which are not recorded in net income until the transportation is utilized in the future (i.e., when natural gas is delivered to the customer), as these contracts are executory contracts that do not qualify as derivatives. As the fair value of the natural gas transportation contracts decline or appreciate, the offsetting physical or financial derivative will also appreciate or decline creating unmatched unrealized gains (losses). |
Financial Instruments and Off_2
Financial Instruments and Off-Balance Sheet Risk (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Financial Assets and Financial Liabilities of Partnership Measured at Fair Value on Recurring Basis | The following table presents financial assets and financial liabilities of the Partnership measured at fair value on a recurring basis: As of September 30, 2019 Fair Value Measurement Quoted Prices in Active Markets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Derivative assets: Commodity fixed forwards $ 45,711 $ — $ 45,711 $ — Futures, swaps and options 34,997 34,981 16 — Commodity derivatives 80,708 34,981 45,727 — Interest rate swaps 11 — 11 — Currency swaps — — — — Total derivative assets $ 80,719 $ 34,981 $ 45,738 $ — Derivative liabilities: Commodity fixed forwards $ 11,128 $ — $ 11,128 $ — Futures, swaps and options 42,393 42,388 5 — Commodity derivatives 53,521 42,388 11,133 — Interest rate swaps 10,007 — 10,007 — Total derivative liabilities $ 63,528 $ 42,388 $ 21,140 $ — Contingent consideration $ 8,852 $ — $ — $ 8,852 As of December 31, 2018 Fair Value Quoted Significant Significant Derivative assets: Commodity fixed forwards $ 42,893 $ — $ 42,893 $ — Futures, swaps and options 120,258 120,231 27 — Commodity derivatives 163,151 120,231 42,920 — Interest rate swaps 2,629 — 2,629 — Currency swaps 2 — 2 — Total derivative assets $ 165,782 $ 120,231 $ 45,551 $ — Derivative liabilities: Commodity fixed forwards $ 21,036 $ — $ 21,036 $ — Futures, swaps and options 78,678 78,674 4 — Commodity derivatives 99,714 78,674 21,040 — Interest rate swaps 2,452 — 2,452 — Total derivative liabilities $ 102,166 $ 78,674 $ 23,492 $ — Contingent consideration $ 8,402 $ — $ — $ 8,402 |
Summary of Offsetting Assets | Information related to these offsetting arrangements is set forth below: As of September 30, 2019 Gross Amount Not Offset in Gross Amount of Assets/Liabilities in the Balance Sheet Financial Cash Net Amount Commodity derivative assets $ 80,708 $ (36,518 ) $ (1,511 ) $ 42,679 Interest rate swap derivative assets 11 — — 11 Currency swaps — — — — Fair value of derivative assets $ 80,719 $ (36,518 ) $ (1,511 ) $ 42,690 Commodity derivative liabilities $ (53,521 ) $ 36,518 $ 11,185 $ (5,818 ) Interest rate swap derivative liabilities (10,007 ) — — (10,007 ) Fair value of derivative liabilities $ (63,528 ) $ 36,518 $ 11,185 $ (15,825 ) As of December 31, 2018 Gross Amount Not Offset in Gross Amount of Assets/Liabilities in the Balance Sheet Financial Cash Net Amount Commodity derivative assets $ 163,151 $ (82,837 ) $ (28,529 ) $ 51,785 Interest rate swap derivative assets 2,629 — — 2,629 Currency swaps 2 — — 2 Fair value of derivative assets $ 165,782 $ (82,837 ) $ (28,529 ) $ 54,416 Commodity derivative liabilities $ (99,714 ) $ 82,837 $ 20 $ (16,857 ) Interest rate swap derivative liabilities (2,452 ) — — (2,452 ) Fair value of derivative liabilities $ (102,166 ) $ 82,837 $ 20 $ (19,309 ) |
Summary of Offsetting Liabilities | Information related to these offsetting arrangements is set forth below: As of September 30, 2019 Gross Amount Not Offset in Gross Amount of Assets/Liabilities in the Balance Sheet Financial Cash Net Amount Commodity derivative assets $ 80,708 $ (36,518 ) $ (1,511 ) $ 42,679 Interest rate swap derivative assets 11 — — 11 Currency swaps — — — — Fair value of derivative assets $ 80,719 $ (36,518 ) $ (1,511 ) $ 42,690 Commodity derivative liabilities $ (53,521 ) $ 36,518 $ 11,185 $ (5,818 ) Interest rate swap derivative liabilities (10,007 ) — — (10,007 ) Fair value of derivative liabilities $ (63,528 ) $ 36,518 $ 11,185 $ (15,825 ) As of December 31, 2018 Gross Amount Not Offset in Gross Amount of Assets/Liabilities in the Balance Sheet Financial Cash Net Amount Commodity derivative assets $ 163,151 $ (82,837 ) $ (28,529 ) $ 51,785 Interest rate swap derivative assets 2,629 — — 2,629 Currency swaps 2 — — 2 Fair value of derivative assets $ 165,782 $ (82,837 ) $ (28,529 ) $ 54,416 Commodity derivative liabilities $ (99,714 ) $ 82,837 $ 20 $ (16,857 ) Interest rate swap derivative liabilities (2,452 ) — — (2,452 ) Fair value of derivative liabilities $ (102,166 ) $ 82,837 $ 20 $ (19,309 ) |
Summary of Realized and Unrealized Gains (Losses) on Derivative Instruments for Commodity Risk Management | The following table presents total realized and unrealized gains (losses) on derivative instruments utilized for commodity risk management purposes included in cost of products sold (exclusive of depreciation and amortization): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Refined products contracts $ 6,221 $ 1,087 $ (15,675 ) $ 10,063 Natural gas contracts (2,421 ) (6,244 ) 21,646 (9,204 ) Total $ 3,800 $ (5,157 ) $ 5,971 $ 859 |
Schedule of Gross Volume of Commodity Derivative Instruments Outstanding | The following table presents gross volume of commodity derivative instruments outstanding for the periods indicated: As of September 30, 2019 As of December 31, 2018 Refined Products (Barrels) Natural Gas (MMBTUs) Refined Products (Barrels) Natural Gas (MMBTUs) Long contracts 6,892 155,356 8,796 132,030 Short contracts (8,649 ) (82,302 ) (12,379 ) (72,223 ) |
Schedule of Notional Amounts | The Partnership's interest rate swap agreements outstanding as of September 30, 2019 were as follows: Beginning Ending Notional Amount January 2019 January 2020 $ 300,000 January 2020 January 2021 $ 300,000 January 2021 January 2022 $ 300,000 January 2022 January 2023 $ 250,000 |
Summary of Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | Changes in the contingent consideration liability are measured at fair value on a recurring basis using unobservable inputs (Level 3) and during fiscal 2019 are as follows: Contingent consideration - December 31, 2018 $ 8,402 Change in estimated fair value 450 Contingent consideration - September 30, 2019 $ 8,852 |
Equity and Equity-Based Compe_2
Equity and Equity-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Partnership's Unit Awards Subject to Vesting | The following table presents a summary of the Partnership’s phantom unit awards subject to vesting during the nine months ended September 30, 2019 : 2019 Awards 2018 Awards 2017 Awards Units Weighted Average Grant Date Fair Value (per unit) Units Weighted Units Weighted Nonvested at December 31, 2018 — $ — 123,186 $ 23.30 119,996 $ 26.96 Granted 180,638 15.04 — — — — Forfeited (15,000 ) (15.04 ) (11,454 ) (23.30 ) (5,760 ) (27.01 ) Vested (end of performance period) — — — — — — Nonvested at September 30, 2019 165,638 $ 15.04 111,732 $ 23.30 114,236 $ 26.60 |
Earnings Per Unit (Tables)
Earnings Per Unit (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Summary of Weighted Average Common Units Outstanding | The table below shows the weighted average common units outstanding used to compute net income per common unit for the periods indicated. Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Weighted average limited partner common units - basic 22,733,977 22,727,284 22,733,977 22,726,645 Dilutive effect of unvested phantom units — — 23,802 40,080 Weighted average limited partner common units - dilutive 22,733,977 22,727,284 22,757,779 22,766,725 |
Partnership Distributions (Tabl
Partnership Distributions (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Schedule of Incentive Distribution Amounts | Cash distributions for the periods indicated were as follows: Quarter Ended Payment Date Per Unit Common IDR Total December 31, 2018 February 13, 2019 $0.6675 $ 15,175 $ 2,055 $ 17,230 March 31, 2019 May 14, 2019 $0.6675 $ 15,175 $ 2,055 $ 17,230 June 30, 2019 August 12, 2019 $0.6675 $ 15,175 $ 2,055 $ 17,230 |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Details) | 9 Months Ended | |
Sep. 30, 2019segment$ / sharesshares | Dec. 31, 2018shares | |
Nature Of Business And Basis Of Presentation [Line Items] | ||
Number of reporting reportable segments | segment | 4 | |
Common Unitholders - Affiliated | ||
Nature Of Business And Basis Of Presentation [Line Items] | ||
Common units issued (in units) | 12,106,348 | 12,106,348 |
Axel Johnson Inc. | Sprague Resources LP | ||
Nature Of Business And Basis Of Presentation [Line Items] | ||
Limited partnership, ownership interest | 53.00% | |
Axel Johnson Inc. | Common Unitholders - Affiliated | Sprague Resources LP | ||
Nature Of Business And Basis Of Presentation [Line Items] | ||
Common units issued (in units) | 12,106,348 | |
Sprague Resources Holdings Llc | ||
Nature Of Business And Basis Of Presentation [Line Items] | ||
Percentages incentive distribution rights | 50.00% | |
Distributions from distributable cash flow (in dollars per unit) | $ / shares | $ 0.474375 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 582,590 | $ 618,455 | $ 2,502,916 | $ 2,691,259 | |
Contract liabilities | 6,200 | 6,200 | $ 9,800 | ||
United States | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 519,340 | 549,477 | 2,322,763 | 2,485,922 | |
Canada | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 63,250 | 68,978 | 180,153 | 205,337 | |
Refined products | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 515,021 | 551,489 | 2,219,457 | 2,396,374 | |
Refined products | Distillates | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 378,535 | 403,186 | 1,795,264 | 1,890,740 | |
Refined products | Gasoline | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 81,777 | 88,536 | 214,933 | 252,852 | |
Refined products | Heavy fuel oil and asphalt | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 54,709 | 59,767 | 209,260 | 252,782 | |
Natural gas | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 48,987 | 46,908 | 221,262 | 235,263 | |
Materials handling | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 13,119 | 14,711 | 43,913 | 42,077 | |
Other operations | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 5,463 | $ 5,347 | $ 18,284 | $ 17,545 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Jan. 01, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease right-of-use asset | $ 20,547 | $ 20,547 | $ 19,700 |
Operating lease liabilities | 20,892 | 20,892 | $ 20,000 |
Operating lease expense | 2,200 | 12,000 | |
Short-term lease expense | 1,100 | 8,300 | |
Finance lease expense | 500 | 1,500 | |
Partnership operating leases income | $ 9,700 | $ 31,200 | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lease extension terms | 1 year | 1 year | |
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lease extension terms | 10 years | 10 years |
Leases - Operating and Financin
Leases - Operating and Financing Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
Operating, ROU Asset | $ 20,547 | $ 19,700 |
Operating, Accrued Liabilities | 6,732 | |
Operating, Lease Liabilities, Less Current Portion | 14,160 | |
Operating, Total Lease Liabilities | $ 20,892 | $ 20,000 |
Operating, Weighted Average Remaining Lease Term | 3 years | |
Operating, Weighted Average Discount Rate | 6.10% | |
Financing, ROU Asset | $ 6,367 | |
Financing, Current Portion of Other Obligation | 1,827 | |
Financing, Other Obligations, Less Current Portion | 4,743 | |
Financing, Total Lease Liabilities | $ 6,570 | |
Financing, Weighted Average Remaining Lease Term | 4 years | |
Financing, Weighted Average Discount Rate | 5.14% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Cash paid for operating leases | $ 3,705 |
ROU assets obtained in exchange for new lease liabilities | $ 4,057 |
Leases - Maturities of Operatin
Leases - Maturities of Operating and Finance Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
Operating | ||
Remaining 2019 | $ 2,574 | |
2020 | 6,912 | |
2021 | 6,985 | |
2022 | 3,854 | |
2023 | 1,125 | |
Thereafter | 1,359 | |
Total Lease Payments | 22,809 | |
Less: Interest | (1,917) | |
Total | 20,892 | $ 20,000 |
Finance | ||
Remaining 2019 | 530 | |
2020 | 2,096 | |
2021 | 1,841 | |
2022 | 1,657 | |
2023 | 965 | |
Thereafter | 110 | |
Total Lease Payments | 7,199 | |
Less: Interest | (629) | |
Total | $ 6,570 |
Leases - Undiscounted Cash Flow
Leases - Undiscounted Cash Flows to be Received from Operating Leases (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Remaining 2019 | $ 9,041 |
2020 | 28,597 |
2021 | 20,228 |
2022 | 16,509 |
2023 | 12,013 |
Thereafter | 57,278 |
Total Lease Receipts | $ 143,666 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Partners' Capital | $ 94,760 | $ 123,467 | $ 136,976 | $ 124,368 | $ 159,437 | $ 131,834 |
Accumulated other comprehensive loss, net of tax | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Partners' Capital | (21,525) | $ (19,656) | (11,522) | $ (5,638) | $ (6,563) | $ (8,870) |
Fair value of interest rate swaps, net of tax | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Partners' Capital | (9,918) | |||||
Fair value of interest rate swaps, net of tax | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Partners' Capital | 176 | |||||
Cumulative foreign currency translation adjustment | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Partners' Capital | $ (11,607) | $ (11,698) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Inventory [Line Items] | ||
Inventories | $ 156,079 | $ 259,568 |
Petroleum and related products | ||
Inventory [Line Items] | ||
Inventories | 149,428 | 253,385 |
Coal | ||
Inventory [Line Items] | ||
Inventories | 4,303 | 2,566 |
Natural gas | ||
Inventory [Line Items] | ||
Inventories | $ 2,348 | $ 3,617 |
Credit Agreement - Narrative (D
Credit Agreement - Narrative (Details) - Credit Agreement - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Debt instruments, weighted average interest rate | 5.10% | 5.30% |
One Month London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Debt instrument, variable rate, term | 1 month | |
Two Month London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Debt instrument, variable rate, term | 2 months | |
Three Month London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Debt instrument, variable rate, term | 3 months | |
Six Month London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Debt instrument, variable rate, term | 6 months | |
Working capital facilities | ||
Debt Instrument [Line Items] | ||
Debt instruments, borrowing capacity | $ 950,000,000 | |
Debt instrument, potential increase in maximum borrowing capacity | 250,000,000 | |
Borrowing base under Credit Agreement | 351,200,000 | $ 512,400,000 |
Letters of credit outstanding | 35,600,000 | $ 65,500,000 |
Excess availability under Credit Agreement | $ 72,900,000 | |
Working capital facilities | Federal Funds Rate | U.S. dollar | ||
Debt Instrument [Line Items] | ||
Debt instruments, interest rate | 0.50% | |
Working capital facilities | Eurocurrency Rate | U.S. dollar | ||
Debt Instrument [Line Items] | ||
Debt instruments, interest rate | 1.00% | |
Working capital facilities | Eurocurrency Rate | Canadian dollars | ||
Debt Instrument [Line Items] | ||
Debt instruments, interest rate | 1.00% | |
Working capital facilities | Kildair | ||
Debt Instrument [Line Items] | ||
Debt instruments, borrowing capacity | $ 100,000,000 | |
Acquisition facility | ||
Debt Instrument [Line Items] | ||
Debt instruments, borrowing capacity | 550,000,000 | |
Debt instrument, potential increase in maximum borrowing capacity | 200,000,000 | |
Excess availability under Credit Agreement | 197,400,000 | |
Multicurrency working capital | ||
Debt Instrument [Line Items] | ||
Debt instrument, potential increase in maximum borrowing capacity | 220,000,000 | |
Working capital and multicurrency facility | ||
Debt Instrument [Line Items] | ||
Debt instrument, potential increase in maximum borrowing capacity | $ 270,000,000 |
Credit Agreement - Schedule of
Credit Agreement - Schedule of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Line of Credit Facility [Line Items] | ||
Credit agreement | $ 595,290 | $ 661,098 |
Less: current portion of working capital facilities | (70,060) | (154,318) |
Long-term portion | 525,230 | 506,780 |
Working capital facilities | ||
Line of Credit Facility [Line Items] | ||
Credit agreement | 242,690 | 284,998 |
Long-term portion | 172,630 | 130,680 |
Acquisition facility | ||
Line of Credit Facility [Line Items] | ||
Credit agreement | 352,600 | 376,100 |
Long-term portion | $ 352,600 | $ 376,100 |
Related Party Transactions (Det
Related Party Transactions (Details) - General Partner - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||||
Reimbursements of employee costs and related benefits | $ 23.8 | $ 24.5 | $ 75.6 | $ 87.4 | |
Amounts due to General Partner | $ 7.1 | $ 7.1 | $ 9.8 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)segmentoperating_unit | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of reporting reportable segments | segment | 4 | ||||
Revenue from contract with customer, excluding assessed tax | $ 582,590 | $ 618,455 | $ 2,502,916 | $ 2,691,259 | |
Significant fixed assets attributable to reporting segment | 344,558 | 344,558 | $ 349,846 | ||
Goodwill | 115,037 | $ 115,037 | $ 115,037 | ||
Refined products segment | |||||
Segment Reporting Information [Line Items] | |||||
Number of operating segments | operating_unit | 3 | ||||
Revenue from contract with customer, excluding assessed tax | 515,021 | 551,489 | $ 2,219,457 | 2,396,374 | |
Goodwill | 71,400 | $ 71,400 | |||
Natural gas segment | |||||
Segment Reporting Information [Line Items] | |||||
Number of operating segments | operating_unit | 1 | ||||
Revenue from contract with customer, excluding assessed tax | 48,987 | 46,908 | $ 221,262 | 235,263 | |
Significant fixed assets attributable to reporting segment | 0 | 0 | |||
Goodwill | 35,500 | $ 35,500 | |||
Materials handling segment | |||||
Segment Reporting Information [Line Items] | |||||
Number of operating segments | operating_unit | 2 | ||||
Revenue from contract with customer, excluding assessed tax | 13,119 | 14,711 | $ 43,913 | 42,077 | |
Goodwill | 6,900 | $ 6,900 | |||
Other operations segment | |||||
Segment Reporting Information [Line Items] | |||||
Number of operating segments | operating_unit | 2 | ||||
Revenue from contract with customer, excluding assessed tax | 5,463 | 5,347 | $ 18,284 | 17,545 | |
Goodwill | 1,200 | 1,200 | |||
Canada | |||||
Segment Reporting Information [Line Items] | |||||
Revenue from contract with customer, excluding assessed tax | $ 63,250 | $ 68,978 | $ 180,153 | $ 205,337 |
Segment Reporting - Summary of
Segment Reporting - Summary of Financial Information for Partnership's Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net sales [Abstract] | ||||
Revenue from contract with customer, excluding assessed tax | $ 582,590 | $ 618,455 | $ 2,502,916 | $ 2,691,259 |
Adjusted gross margin: | ||||
Adjusted gross margin | 51,747 | 46,051 | 195,464 | 205,258 |
Reconciliation to operating income (loss): | ||||
Change in unrealized gain on inventory | 3,428 | (3,281) | (1,169) | 19,309 |
Change in unrealized value on natural gas transportation contracts | (7,005) | (5,939) | 6,429 | 4,413 |
Operating costs and expenses not allocated to operating segments: | ||||
Operating expenses | (20,461) | (21,047) | (65,325) | (66,537) |
Selling, general and administrative | (17,570) | (16,923) | (56,309) | (63,349) |
Depreciation and amortization | (8,466) | (8,343) | (25,263) | (25,146) |
Operating income (loss) | 1,673 | (9,482) | 53,827 | 73,948 |
Other income | 0 | 293 | 128 | 293 |
Interest income | 121 | 123 | 447 | 404 |
Interest expense | (9,918) | (9,073) | (31,915) | (28,369) |
Income tax provision | (1,610) | (295) | (3,078) | (2,984) |
Net (loss) income | (9,734) | (18,434) | 19,409 | 43,292 |
Refined products | ||||
Net sales [Abstract] | ||||
Revenue from contract with customer, excluding assessed tax | 515,021 | 551,489 | 2,219,457 | 2,396,374 |
Adjusted gross margin: | ||||
Adjusted gross margin | 33,400 | 26,646 | 105,783 | 111,652 |
Natural gas | ||||
Net sales [Abstract] | ||||
Revenue from contract with customer, excluding assessed tax | 48,987 | 46,908 | 221,262 | 235,263 |
Adjusted gross margin: | ||||
Adjusted gross margin | 3,681 | 3,007 | 40,649 | 46,010 |
Materials handling | ||||
Net sales [Abstract] | ||||
Revenue from contract with customer, excluding assessed tax | 13,119 | 14,711 | 43,913 | 42,077 |
Adjusted gross margin: | ||||
Adjusted gross margin | 13,101 | 14,683 | 43,886 | 42,100 |
Other operations | ||||
Net sales [Abstract] | ||||
Revenue from contract with customer, excluding assessed tax | 5,463 | 5,347 | 18,284 | 17,545 |
Adjusted gross margin: | ||||
Adjusted gross margin | $ 1,565 | $ 1,715 | $ 5,146 | $ 5,496 |
Financial Instruments and Off_3
Financial Instruments and Off-Balance Sheet Risk - Narrative (Details) | 9 Months Ended | |
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net fair value of financial instruments | $ 44,200,000 | |
Interest rate swaps | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain (loss) on cash flow hedge ineffectiveness, net | 0 | $ 0 |
Unrealized losses, net of tax, expected to be reclassified to earnings | (2,500,000) | |
Coen Energy, LLC And Coen Transport, LLC | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Business combination, contingent consideration arrangements, range of outcomes, value, high | $ 12,000,000 | |
Business combination, contingent consideration measurement period | 3 years | |
Measurement Input, Discount Rate | Business Combination, Contingent Consideration | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Debt instrument, measurement input | 0.070 |
Financial Instruments and Off_4
Financial Instruments and Off-Balance Sheet Risk - Summary of Financial Assets and Financial Liabilities of Partnership Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Quoted Prices in Active Markets Level 1 | ||
Derivative assets: | ||
Financial assets | $ 34,981 | $ 120,231 |
Derivative liabilities: | ||
Financial liabilities | 42,388 | 78,674 |
Contingent consideration | 0 | 0 |
Quoted Prices in Active Markets Level 1 | Commodity fixed forwards | ||
Derivative assets: | ||
Financial assets | 0 | 0 |
Derivative liabilities: | ||
Financial liabilities | 0 | 0 |
Quoted Prices in Active Markets Level 1 | Futures, swaps and options | ||
Derivative assets: | ||
Financial assets | 34,981 | 120,231 |
Derivative liabilities: | ||
Financial liabilities | 42,388 | 78,674 |
Quoted Prices in Active Markets Level 1 | Commodity derivatives | ||
Derivative assets: | ||
Financial assets | 34,981 | 120,231 |
Derivative liabilities: | ||
Financial liabilities | 42,388 | 78,674 |
Quoted Prices in Active Markets Level 1 | Interest rate swaps | ||
Derivative assets: | ||
Financial assets | 0 | 0 |
Derivative liabilities: | ||
Financial liabilities | 0 | 0 |
Quoted Prices in Active Markets Level 1 | Currency swaps | ||
Derivative assets: | ||
Financial assets | 0 | 0 |
Significant Other Observable Inputs Level 2 | ||
Derivative assets: | ||
Financial assets | 45,738 | 45,551 |
Derivative liabilities: | ||
Financial liabilities | 21,140 | 23,492 |
Contingent consideration | 0 | 0 |
Significant Other Observable Inputs Level 2 | Commodity fixed forwards | ||
Derivative assets: | ||
Financial assets | 45,711 | 42,893 |
Derivative liabilities: | ||
Financial liabilities | 11,128 | 21,036 |
Significant Other Observable Inputs Level 2 | Futures, swaps and options | ||
Derivative assets: | ||
Financial assets | 16 | 27 |
Derivative liabilities: | ||
Financial liabilities | 5 | 4 |
Significant Other Observable Inputs Level 2 | Commodity derivatives | ||
Derivative assets: | ||
Financial assets | 45,727 | 42,920 |
Derivative liabilities: | ||
Financial liabilities | 11,133 | 21,040 |
Significant Other Observable Inputs Level 2 | Interest rate swaps | ||
Derivative assets: | ||
Financial assets | 11 | 2,629 |
Derivative liabilities: | ||
Financial liabilities | 10,007 | 2,452 |
Significant Other Observable Inputs Level 2 | Currency swaps | ||
Derivative assets: | ||
Financial assets | 0 | 2 |
Significant Unobservable Inputs Level 3 | ||
Derivative assets: | ||
Financial assets | 0 | 0 |
Derivative liabilities: | ||
Financial liabilities | 0 | 0 |
Contingent consideration | 8,852 | 8,402 |
Significant Unobservable Inputs Level 3 | Commodity fixed forwards | ||
Derivative assets: | ||
Financial assets | 0 | 0 |
Derivative liabilities: | ||
Financial liabilities | 0 | 0 |
Significant Unobservable Inputs Level 3 | Futures, swaps and options | ||
Derivative assets: | ||
Financial assets | 0 | 0 |
Derivative liabilities: | ||
Financial liabilities | 0 | 0 |
Significant Unobservable Inputs Level 3 | Commodity derivatives | ||
Derivative assets: | ||
Financial assets | 0 | 0 |
Derivative liabilities: | ||
Financial liabilities | 0 | 0 |
Significant Unobservable Inputs Level 3 | Interest rate swaps | ||
Derivative assets: | ||
Financial assets | 0 | 0 |
Derivative liabilities: | ||
Financial liabilities | 0 | 0 |
Significant Unobservable Inputs Level 3 | Currency swaps | ||
Derivative assets: | ||
Financial assets | 0 | 0 |
Fair Value Measurement | ||
Derivative assets: | ||
Financial assets | 80,719 | 165,782 |
Derivative liabilities: | ||
Financial liabilities | 63,528 | 102,166 |
Contingent consideration | 8,852 | 8,402 |
Fair Value Measurement | Commodity fixed forwards | ||
Derivative assets: | ||
Financial assets | 45,711 | 42,893 |
Derivative liabilities: | ||
Financial liabilities | 11,128 | 21,036 |
Fair Value Measurement | Futures, swaps and options | ||
Derivative assets: | ||
Financial assets | 34,997 | 120,258 |
Derivative liabilities: | ||
Financial liabilities | 42,393 | 78,678 |
Fair Value Measurement | Commodity derivatives | ||
Derivative assets: | ||
Financial assets | 80,708 | 163,151 |
Derivative liabilities: | ||
Financial liabilities | 53,521 | 99,714 |
Fair Value Measurement | Interest rate swaps | ||
Derivative assets: | ||
Financial assets | 11 | 2,629 |
Derivative liabilities: | ||
Financial liabilities | 10,007 | 2,452 |
Fair Value Measurement | Currency swaps | ||
Derivative assets: | ||
Financial assets | $ 0 | $ 2 |
Financial Instruments and Off_5
Financial Instruments and Off-Balance Sheet Risk - Summary of Offsetting Arrangements (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gross Amount of Assets in the Balance Sheet | $ 80,719 | $ 165,782 |
Gross Amount Not Offset in the Balance Sheet, Financial Instruments, Assets | (36,518) | (82,837) |
Gross Amount Not Offset in the Balance Sheet, Cash Collateral Posted, Assets | (1,511) | (28,529) |
Net Amount, Assets | 42,690 | 54,416 |
Gross Amount of Liabilities in the Balance Sheet | (63,528) | (102,166) |
Gross Amount Not Offset in the Balance Sheet, Financial Instruments, Liabilities | 36,518 | 82,837 |
Gross Amount Not Offset in the Balance Sheet, Cash Collateral Posted, Liabilities | 11,185 | 20 |
Net Amount, Liabilities | (15,825) | (19,309) |
Commodity derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gross Amount of Assets in the Balance Sheet | 80,708 | 163,151 |
Gross Amount Not Offset in the Balance Sheet, Financial Instruments, Assets | (36,518) | (82,837) |
Gross Amount Not Offset in the Balance Sheet, Cash Collateral Posted, Assets | (1,511) | (28,529) |
Net Amount, Assets | 42,679 | 51,785 |
Gross Amount of Liabilities in the Balance Sheet | (53,521) | (99,714) |
Gross Amount Not Offset in the Balance Sheet, Financial Instruments, Liabilities | 36,518 | 82,837 |
Gross Amount Not Offset in the Balance Sheet, Cash Collateral Posted, Liabilities | 11,185 | 20 |
Net Amount, Liabilities | (5,818) | (16,857) |
Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gross Amount of Assets in the Balance Sheet | 11 | 2,629 |
Gross Amount Not Offset in the Balance Sheet, Financial Instruments, Assets | 0 | 0 |
Gross Amount Not Offset in the Balance Sheet, Cash Collateral Posted, Assets | 0 | 0 |
Net Amount, Assets | 11 | 2,629 |
Gross Amount of Liabilities in the Balance Sheet | (10,007) | (2,452) |
Gross Amount Not Offset in the Balance Sheet, Financial Instruments, Liabilities | 0 | 0 |
Gross Amount Not Offset in the Balance Sheet, Cash Collateral Posted, Liabilities | 0 | 0 |
Net Amount, Liabilities | (10,007) | (2,452) |
Currency swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gross Amount of Assets in the Balance Sheet | 0 | 2 |
Gross Amount Not Offset in the Balance Sheet, Financial Instruments, Assets | 0 | 0 |
Gross Amount Not Offset in the Balance Sheet, Cash Collateral Posted, Assets | 0 | 0 |
Net Amount, Assets | $ 0 | $ 2 |
Financial Instruments and Off_6
Financial Instruments and Off-Balance Sheet Risk - Summary of Realized and Unrealized Gains (Losses) on Derivative Instruments for Commodity Risk Management (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Realized and unrealized gains (losses) on derivative instruments | $ 3,800 | $ (5,157) | $ 5,971 | $ 859 |
Refined products contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Realized and unrealized gains (losses) on derivative instruments | 6,221 | 1,087 | (15,675) | 10,063 |
Natural gas contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Realized and unrealized gains (losses) on derivative instruments | $ (2,421) | $ (6,244) | $ 21,646 | $ (9,204) |
Financial Instruments and Off_7
Financial Instruments and Off-Balance Sheet Risk - Schedule of Gross Volume of Commodity Derivative Instruments Outstanding (Details) bbl in Thousands, MMBTU in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019USD ($)MMBTUbbl | Dec. 31, 2018MMBTUbbl | |
Cash Flow Hedging | Interest Rate Swaps Ending January 2020 | Designated as Hedging Instrument | ||
Investment Derivative, Notional Amount [Abstract] | ||
Notional amount of interest rate swap agreements | $ 300,000 | |
Cash Flow Hedging | Interest Rate Swaps Ending January 2021 | Designated as Hedging Instrument | ||
Investment Derivative, Notional Amount [Abstract] | ||
Notional amount of interest rate swap agreements | 300,000 | |
Cash Flow Hedging | Interest Rate Swaps Ending January 2022 | Designated as Hedging Instrument | ||
Investment Derivative, Notional Amount [Abstract] | ||
Notional amount of interest rate swap agreements | 300,000 | |
Cash Flow Hedging | Interest Rate Swaps Ending January 2023 | Designated as Hedging Instrument | ||
Investment Derivative, Notional Amount [Abstract] | ||
Notional amount of interest rate swap agreements | $ 250,000 | |
Long | Refined products contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross volume, refined products (in barrels) | bbl | 6,892 | 8,796 |
Long | Natural gas contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross volume, natural gas (in millions of BTUs) | MMBTU | 155,356 | 132,030 |
Short | Refined products contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross volume, refined products (in barrels) | bbl | 8,649 | 12,379 |
Short | Natural gas contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross volume, natural gas (in millions of BTUs) | MMBTU | 82,302 | 72,223 |
Financial Instruments and Off_8
Financial Instruments and Off-Balance Sheet Risk - Level 3 Liabilities Reconciliation (Details) - Business Combination, Contingent Consideration - Fair Value, Inputs, Level 3 $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Contingent consideration - December 31, 2018 | $ 8,402 |
Change in estimated fair value | 450 |
Contingent consideration - September 30, 2019 | $ 8,852 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Sep. 30, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Import tax, penalty, and interest | $ 4.5 |
Import tax | $ 8.8 |
Import tax, penalty, and interest percentage | 15.00% |
Equity and Equity-Based Compe_3
Equity and Equity-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unit-based compensation expense (income) recorded in unitholders' equity | $ 69 | $ (91) |
Phantom Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Unit-based compensation expense (income) recorded in unitholders' equity | $ 100 | $ (100) |
Unrecognized compensation cost related to performance-based phantom unit awards | $ 1,200 | |
Phantom Units (OCF-based) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Minimum | Phantom Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage range of units granted | 0.00% | |
Maximum | Phantom Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage range of units granted | 200.00% | |
Weighted Average | Phantom Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average recognition period | 27 months |
Equity and Equity-Based Compe_4
Equity and Equity-Based Compensation - Summary of Partnership's Unit Awards Subject to Vesting (Details) - Phantom Units | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
2019 | |
Units | |
Nonvested, beginning (in units) | shares | 0 |
Granted (in units) | shares | 180,638 |
Forfeited (in units) | shares | (15,000) |
Vested (end of performance period) (in units) | shares | 0 |
Nonvested, ending (in units) | shares | 165,638 |
Weighted Average Grant Date Fair Value (per unit) | |
Weighted-average grant date fair value, nonvested, beginning (in dollars per unit) | $ / shares | $ 0 |
Weighted-average grant date fair value, granted (in dollars per unit) | $ / shares | 15.04 |
Weighted-average grant date fair value, forfeited (in dollars per unit) | $ / shares | (15.04) |
Weighted-average grant date fair value, vested (end of performance period) (in dollars per unit) | $ / shares | 0 |
Weighted-average grant date fair value, nonvested, ending (in dollars per unit) | $ / shares | $ 15.04 |
2018 | |
Units | |
Nonvested, beginning (in units) | shares | 123,186 |
Granted (in units) | shares | 0 |
Forfeited (in units) | shares | (11,454) |
Vested (end of performance period) (in units) | shares | 0 |
Nonvested, ending (in units) | shares | 111,732 |
Weighted Average Grant Date Fair Value (per unit) | |
Weighted-average grant date fair value, nonvested, beginning (in dollars per unit) | $ / shares | $ 23.30 |
Weighted-average grant date fair value, granted (in dollars per unit) | $ / shares | 0 |
Weighted-average grant date fair value, forfeited (in dollars per unit) | $ / shares | (23.30) |
Weighted-average grant date fair value, vested (end of performance period) (in dollars per unit) | $ / shares | 0 |
Weighted-average grant date fair value, nonvested, ending (in dollars per unit) | $ / shares | $ 23.30 |
2017 | |
Units | |
Nonvested, beginning (in units) | shares | 119,996 |
Granted (in units) | shares | 0 |
Forfeited (in units) | shares | (5,760) |
Vested (end of performance period) (in units) | shares | 0 |
Nonvested, ending (in units) | shares | 114,236 |
Weighted Average Grant Date Fair Value (per unit) | |
Weighted-average grant date fair value, nonvested, beginning (in dollars per unit) | $ / shares | $ 26.96 |
Weighted-average grant date fair value, granted (in dollars per unit) | $ / shares | 0 |
Weighted-average grant date fair value, forfeited (in dollars per unit) | $ / shares | (27.01) |
Weighted-average grant date fair value, vested (end of performance period) (in dollars per unit) | $ / shares | 0 |
Weighted-average grant date fair value, nonvested, ending (in dollars per unit) | $ / shares | $ 26.60 |
Earnings Per Unit (Details)
Earnings Per Unit (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Weighted average limited partner common units - basic (in units) | 22,733,977 | 22,727,284 | 22,733,977 | 22,726,645 |
Dilutive effect of unvested phantom units (in units) | 0 | 0 | 23,802 | 40,080 |
Weighted average limited partner common units - dilutive (in units) | 22,733,977 | 22,727,284 | 22,757,779 | 22,766,725 |
Partnership Distributions (Deta
Partnership Distributions (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 25, 2019 | Aug. 12, 2019 | May 14, 2019 | Feb. 13, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ||||||||
Cash distributed (in dollars per unit) | $ 0.6675 | $ 0.6675 | $ 0.6675 | |||||
Cash distributed | $ 17,230 | $ 17,230 | $ 17,230 | $ 51,691 | $ 51,391 | |||
Distribution declared per unit (in dollars per unit) | $ 0.6675 | $ 0.6675 | $ 2.0025 | $ 1.9875 | ||||
Subsequent event | ||||||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ||||||||
Distribution declared per unit (in dollars per unit) | $ 0.6675 | |||||||
Distribution made to limited partner, cash distributions declared | $ 15,200 | |||||||
Common | ||||||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ||||||||
Cash distributed | 15,175 | 15,175 | 15,175 | |||||
IDR | ||||||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ||||||||
Cash distributed | $ 2,055 | $ 2,055 | $ 2,055 |