Alon USA Partners (ALDW) 10-Q 31 Oct 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	9 Months Ended
	Sep. 30, 2016	Oct. 24, 2016
Document Information
Entity Registrant Name	Alon USA Partners, LP
Entity Central Index Key	1,556,766
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		62,520,220

Consolidated Balance Sheets (un

Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 203,763	$ 132,953
Accounts and other receivables, net	70,884	59,581
Accounts and other receivables, net - related parties	10,191	8,005
Inventories	51,890	35,444
Prepaid expenses and other current assets	5,733	6,745
Total current assets	342,461	242,728
Property, plant and equipment, net	423,187	434,619
Other assets, net	59,402	71,237
Total assets	825,050	748,584
Current liabilities:
Accounts payable	292,542	253,325
Accrued liabilities	36,959	40,707
Current portion of long-term debt	2,500	2,500
Total current liabilities	332,001	296,532
Other non-current liabilities	92,095	31,513
Long-term debt	288,986	289,582
Total liabilities	713,082	617,627
Commitments and contingencies (Note 11)
Partners’ equity:
General Partner	0	0
Common unitholders - 62,520,220 and 62,510,039 units issued and outstanding at September 30, 2016 and December 31, 2015, respectively	111,968	130,957
Total partners’ equity	111,968	130,957
Total liabilities and partners’ equity	$ 825,050	$ 748,584

Consolidated Balance Sheets Par

Consolidated Balance Sheets Parentheticals - shares	Sep. 30, 2016	Dec. 31, 2015
Common units, shares issued	62,520,220	62,510,039
Common units, shares outstanding	62,520,220	62,510,039

Consolidated Statements of Oper

Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Net sales	[1]	$ 462,257	$ 551,813	$ 1,298,723	$ 1,719,319
Operating costs and expenses:
Cost of sales		404,207	439,678	1,134,275	1,397,395
Direct operating expenses		25,125	24,136	73,424	71,837
Selling, general and administrative expenses		8,153	8,536	24,264	24,654
Depreciation and amortization		14,581	13,697	43,454	41,281
Total operating costs and expenses		452,066	486,047	1,275,417	1,535,167
Operating income		10,191	65,766	23,306	184,152
Interest expense		(8,144)	(11,505)	(28,651)	(34,045)
Other income, net		353	40	550	26
Income (loss) before state income tax expense		2,400	54,301	(4,795)	150,133
State income tax expense		317	525	493	480
Net income (loss)		$ 2,083	$ 53,776	$ (5,288)	$ 149,653
Earnings (loss) per unit		$ 0.03	$ 0.86	$ (0.08)	$ 2.39
Weighted average common units outstanding (in thousands)		62,520	62,510	62,515	62,508
Cash distribution per unit		$ 0.14	$ 1.04	$ 0.22	$ 2.45
[1]	Includes sales to related parties of $82,717 and $97,014 for the three months and $222,711 and $281,136 for the nine months ended September 30, 2016 and 2015, respectively

Consolidated Statements of Ope5

Consolidated Statements of Operations Parentheticals - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statements of Operations Parentheticals [Abstract]
Sales to related parties	$ 82,717	$ 97,014	$ 222,711	$ 281,136

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net income (loss)	$ (5,288)	$ 149,653
Adjustments to reconcile net income (loss) to cash provided by operating activities:
Depreciation and amortization	43,454	41,281
Unit-based compensation	53	40
Deferred income taxes	0	(736)
Amortization of debt issuance costs	1,335	1,750
Amortization of original issuance discount	480	445
Changes in operating assets and liabilities:
Accounts and other receivables, net	(7,064)	(3,770)
Accounts and other receivables, net - related parties	(2,186)	(184)
Inventories	(16,446)	3,998
Prepaid expenses and other current assets	1,012	202
Other assets, net	4,573	(5,067)
Accounts payable	22,268	45,194
Accrued liabilities	(2,134)	(16,835)
Other non-current liabilities	18,400	3,261
Net cash provided by operating activities	58,457	219,232
Cash flows from investing activities:
Capital expenditures	(17,199)	(12,108)
Capital expenditures for turnarounds and catalysts	(9,679)	(3,214)
Net cash used in investing activities	(26,878)	(15,322)
Cash flows from financing activities:
Distributions paid to unitholders	(2,534)	(28,195)
Distributions paid to unitholders - Alon Energy	(11,220)	(124,950)
RINs financing transactions	54,860	(8,137)
Deferred debt issuance costs	0	(1,800)
Revolving credit facility, net	0	(10,000)
Payments on long-term debt	(1,875)	(1,875)
Net cash provided by (used in) financing activities	39,231	(174,957)
Net increase in cash and cash equivalents	70,810	28,953
Cash and cash equivalents, beginning of period	132,953	106,325
Cash and cash equivalents, end of period	203,763	135,278
Supplemental cash flow information:
Cash paid for interest, net of capitalized interest	27,219	31,785
Cash paid for income tax	493	1,216
Supplemental disclosure of non-cash activity:
Capital expenditures included in accounts payable and accrued liabilities	$ 0	$ 3,016

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation As used in this report, the terms “Alon,” the “Partnership,” “we,” “our” and “us” or like terms refer to Alon USA Partners, LP, and its consolidated subsidiaries or to Alon USA Partners, LP or an individual subsidiary. References in this report to “Alon Energy” refer collectively to Alon USA Energy, Inc. and any of its consolidated subsidiaries, other than Alon USA Partners, LP, its subsidiaries and its general partner. We are a Delaware limited partnership formed in August 2012 by Alon Energy and its wholly-owned subsidiary Alon USA Partners GP, LLC (the “General Partner”), which owns 100% of our non-economic general partner interest. These consolidated financial statements and notes are unaudited and have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Act of 1934. Accordingly, they do not include all of the information and notes required by GAAP for complete consolidated financial statements. In the opinion of the General Partner’s management, the information included in these consolidated financial statements reflects all adjustments, consisting of normal and recurring adjustments, which are necessary for a fair presentation of our consolidated financial position and results of operations for the interim periods presented. All significant intercompany balances and transactions have been eliminated in consolidation. Certain prior year balances may have been aggregated or disaggregated in order to conform to the current year presentation. Our results of operations for the three and nine months ended September 30, 2016 are not necessarily indicative of the operating results that may be realized for the year ending December 31, 2016 . Our consolidated balance sheet as of December 31, 2015 has been derived from the audited financial statements as of that date. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2015 . New Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) and the International Accounting Standards Board jointly issued a comprehensive new revenue recognition standard that provides accounting guidance for all revenue arising from contracts to provide goods or services to customers. This standard is intended to improve comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets. The standard allows for either full retrospective adoption or modified retrospective adoption. In August 2015, the FASB updated the guidance to include a one-year deferral of the effective date for the new revenue standard, making the requirements of the standard effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted for interim and annual periods beginning after December 15, 2016. We are evaluating the guidance to determine the method of adoption and the impact this standard will have on our consolidated financial statements. In July 2015, the FASB issued an accounting standards update simplifying the measurement of certain inventory. This updated standard simplifies the measurement of inventory by requiring certain inventory to be measured at the lower of cost or net realizable value. The amendments in this accounting standards update are effective for interim and annual periods beginning after December 15, 2016. This accounting standards update does not apply to the subsequent measurement of inventory measured using the last-in, first-out (“LIFO”) or retail inventory method, therefore the adoption of this guidance will not have a material effect on our financial position or results of operations. In February 2016, the FASB issued new guidance on the accounting for leases, which requires lessees to recognize assets and liabilities on the balance sheet for the present value of the rights and obligations created by all leases with terms of more than 12 months. The ASU also will require disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. The requirements from this guidance are effective for interim and annual periods beginning after December 31, 2018. We are evaluating the guidance to determine the impact this standard will have on our consolidated financial statements. In June 2016, the FASB issued an accounting standards update requiring the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. The requirements from the updated standard are effective for interim and annual periods beginning after December 15, 2019. We are evaluating the guidance to determine the impact this standard will have on our consolidated financial statements. In August 2016, the FASB issued an accounting standards update addressing eight specific cash flow issues with the objective of eliminating the existing diversity in practice. The amendments from this update are effective for interim and annual periods beginning after December 15, 2017. We do not expect application of this standard to have a material effect on our consolidated financial statements.

Fair Value

Fair Value	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Disclosures	Fair Value We determine fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We classify financial assets and financial liabilities into the following fair value hierarchy: • Level 1 - valued based on quoted prices in active markets for identical assets and liabilities; • Level 2 - valued based on quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability; and • Level 3 - valued based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. As required, we utilize valuation techniques that maximize the use of observable inputs (levels 1 and 2) and minimize the use of unobservable inputs (level 3) within the fair value hierarchy. We generally apply the “market approach” to determine fair value. This method uses pricing and other information generated by market transactions for identical or comparable assets and liabilities. Assets and liabilities are classified within the fair value hierarchy based on the lowest level (least observable) input that is significant to the measurement in its entirety. The carrying amounts of our cash and cash equivalents, receivables, payables and accrued liabilities approximate fair value due to the short-term maturities of these assets and liabilities. The reported amounts of long-term debt approximate fair value. Derivative instruments are carried at fair value, which are based on quoted market prices. Derivative instruments are our only assets and liabilities measured at fair value on a recurring basis. The following table sets forth the assets and liabilities measured at fair value on a recurring basis, by input level, in the consolidated balance sheets at September 30, 2016 and December 31, 2015 : Level 1 Level 2 Level 3 Total As of September 30, 2016 Assets: Fair value hedge of consigned inventory $ — $ 5,569 $ — $ 5,569 Liabilities: Commodity contracts (futures and forwards) 1,033 — — 1,033 As of December 31, 2015 Assets: Fair value hedge of consigned inventory $ — $ 11,564 $ — $ 11,564 Liabilities: Commodity contracts (futures and forwards) 40 — — 40

Derivative Financial Instrument

Derivative Financial Instruments	9 Months Ended
	Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities Disclosure	Derivative Financial Instruments We selectively utilize crude oil and refined product commodity derivative contracts to reduce the risk associated with potential price changes on committed obligations as well as to reduce earnings volatility. We do not speculate using derivative instruments. Credit risk on our derivative instruments is mitigated by transacting with counterparties meeting established collateral and credit criteria. Mark to Market We have certain contracts that serve as economic hedges, which are derivatives used for risk management but not designated as hedges for financial accounting purposes. All economic hedge transactions are recorded at fair value and any changes in fair value between periods are recognized in earnings. We have contracts that are used to fix prices on forecasted purchases of inventory, which we refer to as futures and forwards. Futures represent trades executed on the New York Mercantile Exchange which have not been closed or settled at the end of the reporting period. Forwards represent physical trades for which pricing and quantities have been set, but the physical product delivery has not occurred by the end of the reporting period. Fair Value Hedge Fair value hedges are used to hedge price volatility of certain refining inventories and firm commitments to purchase inventories. The gain or loss on a derivative instrument designated and qualifying as a fair value hedge, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk, is recognized in earnings in the same period. We have certain commodity contracts associated with the Supply and Offtake Agreement discussed in Note 5 that have been accounted for as a fair value hedge, which had purchase volumes of 135 thousand barrels of crude oil as of September 30, 2016 . The following tables present the effect of derivative instruments on the consolidated balance sheets: As of September 30, 2016 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives not designated as hedging instruments: Commodity contracts (futures and forwards) Accounts receivable $ 427 Accrued liabilities $ 1,460 Total derivatives not designated as hedging instruments 427 1,460 Derivatives designated as hedging instruments: Fair value hedge of consigned inventory Other assets $ 5,569 $ — Total derivatives designated as hedging instruments 5,569 — Total derivatives $ 5,996 $ 1,460 As of December 31, 2015 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives not designated as hedging instruments: Commodity contracts (futures and forwards) Accounts receivable $ 59 Accrued liabilities $ 99 Total derivatives not designated as hedging instruments 59 99 Derivatives designated as hedging instruments: Fair value hedge of consigned inventory Other assets $ 11,564 $ — Total derivatives designated as hedging instruments 11,564 — Total derivatives $ 11,623 $ 99 The following tables present the effect of derivative instruments on the consolidated statements of operations: Derivatives in fair value hedging relationships: Gain (Loss) Recognized in Income For the Three Months Ended For the Nine Months Ended September 30, September 30, Location 2016 2015 2016 2015 Fair value hedge of consigned inventory (1) Interest expense $ (1,772 ) $ 5,990 $ (5,995 ) $ 4,495 Total derivatives $ (1,772 ) $ 5,990 $ (5,995 ) $ 4,495 _______________________ (1) Changes in the fair value hedge are substantially offset in earnings by changes in the hedged item. Derivatives not designated as hedging instruments: Gain (Loss) Recognized in Income For the Three Months Ended For the Nine Months Ended September 30, September 30, Location 2016 2015 2016 2015 Commodity contracts (futures and forwards) Cost of sales $ (1,199 ) $ 1,251 $ 4,998 $ 622 Total derivatives $ (1,199 ) $ 1,251 $ 4,998 $ 622 Offsetting Assets and Liabilities Our derivative instruments are subject to master netting arrangements to manage counterparty credit risk associated with derivatives, and we offset the fair value amounts recorded for derivative instruments to the extent possible under these agreements on our consolidated balance sheets. The following table presents offsetting information regarding our derivatives by type of transaction as of September 30, 2016 and December 31, 2015 : Gross Amounts of Recognized Assets/Liabilities Gross Amounts offset in the Statement of Financial Position Net Amounts Presented in the Statement of Financial Position Gross Amounts Not offset in the Statement of Financial Position Net Amount Financial Instruments Cash Collateral Pledged As of September 30, 2016 Derivative Assets: Commodity contracts (futures and forwards) $ 1,174 $ (747 ) $ 427 $ (427 ) $ — $ — Fair value hedge of consigned inventory 5,569 — 5,569 — — 5,569 Derivative Liabilities: Commodity contracts (futures and forwards) $ 2,207 $ (747 ) $ 1,460 $ (427 ) $ — $ 1,033 As of December 31, 2015 Derivative Assets: Commodity contracts (futures and forwards) $ 192 $ (133 ) $ 59 $ (59 ) $ — $ — Fair value hedge of consigned inventory 11,564 — 11,564 — — 11,564 Derivative Liabilities: Commodity contracts (futures and forwards) $ 232 $ (133 ) $ 99 $ (59 ) $ — $ 40 Compliance Program Market Risk We are obligated by government regulations to blend a certain percentage of biofuels into the products that we produce and are consumed in the U.S. We purchase biofuels from third parties and blend those biofuels into our products, and each gallon of biofuel purchased includes a renewable identification number, or RIN. To the degree we are unable to blend biofuels at the required percentage, a RINs deficit is generated and we must acquire that number of RINs by the annual reporting deadline in order to remain in compliance with applicable regulations. Alternatively, if we have a RINs surplus, some of those RINs could be sold. Any such sales would be subject to our normal credit evaluation process. We are exposed to market risk related to the volatility in the price of credits needed to comply with these governmental and regulatory programs. We manage this risk by purchasing RINs when prices are deemed favorable utilizing fixed price purchase contracts. We may also sell the RINs with an agreement to repurchase in the future. Some of these contracts are derivative instruments; however, we elect the normal purchase and sale exception and do not record these contracts at their fair values. The cost of meeting our obligations under these compliance programs was $3,712 and $1,868 for the three months ended and $6,620 and $8,369 for the nine months ended September 30, 2016 and 2015 , respectively. These amounts are reflected in cost of sales in the consolidated statements of operations.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
Inventory Disclosure	Inventories Carrying value of inventories consisted of the following: September 30, December 31, Crude oil, refined products and blendstocks $ 39,909 $ 24,548 Crude oil consignment inventory (Note 5) (1) 838 (95 ) Materials and supplies 11,143 10,991 Total inventories $ 51,890 $ 35,444 _______________________ (1) The fair value of the hedged item designated in our fair value hedge reduced the carrying value of our consigned inventory valued at LIFO below zero at December 31, 2015 . At September 30, 2016 and December 31, 2015 , the market value of refined products and blendstock inventories was less than inventories on a LIFO cost basis which resulted in recording a lower of cost or market reserve of $7,350 and $9,396 , respectively. At September 30, 2016 and December 31, 2015 , the market value of crude oil inventories exceeded LIFO costs, net of the fair value hedged item, by $3,937 and $6,387 , respectively.

Inventory Financing Agreement

Inventory Financing Agreement	9 Months Ended
	Sep. 30, 2016
Inventory Financing Agreement Disclosure [Abstract]
Inventory Financing Agreement	Inventory Financing Agreement We have entered into a Supply and Offtake Agreement and other associated agreements (together the “Supply and Offtake Agreement”) with J. Aron & Company (“J. Aron”). Pursuant to the Supply and Offtake Agreement, (i) J. Aron agreed to sell to us, and we agreed to buy from J. Aron, at market prices, crude oil for processing at the Big Spring refinery and (ii) we agreed to sell, and J. Aron agreed to buy, at market prices, certain refined products produced at the Big Spring refinery. The Supply and Offtake Agreement also provided for the sale, at market prices, of our crude oil and certain refined product inventories to J. Aron, the lease to J. Aron of crude oil and refined product storage facilities, and to identify prospective purchasers of refined products on J. Aron’s behalf. The Supply and Offtake Agreement has an initial term that expires in May 2021. J. Aron may elect to terminate the Supply and Offtake Agreement prior to the expiration of the initial term beginning in May 2018 and upon each anniversary thereof, on six months prior notice. We may elect to terminate in May 2020 on six months prior notice. Following expiration or termination of the Supply and Offtake Agreement, we are obligated to purchase the crude oil and refined product inventories then owned by J. Aron and located at the Big Spring refinery at then current market prices. Associated with the Supply and Offtake Agreement, we have a fair value hedge of our inventory purchase commitment with J. Aron and crude oil inventory consigned to J. Aron (“crude oil consignment inventory”). Additionally, financing charges related to the Supply and Offtake Agreement are recorded as interest expense in the consolidated statements of operations. At September 30, 2016 and December 31, 2015 , we had net current payables of $18,455 and net current receivables of $4,975 , respectively, with J. Aron for purchases and sales, and a consignment inventory receivable representing a deposit paid to J. Aron of $6,290 and $6,290 , respectively. At September 30, 2016 and December 31, 2015 , we had non-current liabilities for the original financing of $7,203 and $9,761 , respectively, net of the related fair value hedge. Additionally, we had net current receivables of $427 and net current payables $99 at September 30, 2016 and December 31, 2015 , respectively, for forward commitments related to month-end consignment inventory target levels differing from projected levels and the associated pricing with these inventory level differences.

Property, Plant and Equipment,

Property, Plant and Equipment, Net	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment, Net [Abstract]
Property, Plant and Equipment, Net	Property, Plant and Equipment, Net Property, plant and equipment, net consisted of the following: September 30, December 31, Refining facilities $ 725,905 $ 709,779 Accumulated depreciation (302,718 ) (275,160 ) Property, plant and equipment, net $ 423,187 $ 434,619

Additional Financial Informatio

Additional Financial Information	9 Months Ended
	Sep. 30, 2016
Additional Financial Information [Abstract]
Additional Financial Information	Additional Financial Information The following tables provide additional financial information related to the consolidated financial statements. (a) Other Assets, Net September 30, December 31, Deferred turnaround and catalyst cost $ 38,199 $ 43,021 Receivable from supply and offtake agreement (Note 5) 6,290 6,290 Fair value hedge of consigned inventory (Note 3) 5,569 11,564 Other 9,344 10,362 Total other assets $ 59,402 $ 71,237 (b) Accounts Payable Included in accounts payable was $123,844 and $91,179 related to RINs financing transactions as of September 30, 2016 and December 31, 2015 , respectively. (c) Accrued Liabilities and Other Non-Current Liabilities September 30, December 31, Accrued Liabilities: Taxes other than income taxes, primarily excise taxes $ 25,186 $ 25,018 Accrued finance charges 293 394 Environmental accrual (Note 11) 1,716 1,716 Commodity contracts 1,460 99 Other 8,304 13,480 Total accrued liabilities $ 36,959 $ 40,707 Other Non-Current Liabilities: Consignment inventory obligation (Note 5) $ 12,772 $ 21,325 Environmental accrual (Note 11) 4,722 4,725 Asset retirement obligations 3,086 2,927 RINs financing transactions 68,978 — Other 2,537 2,536 Total other non-current liabilities $ 92,095 $ 31,513

Indebtedness

Indebtedness	9 Months Ended
	Sep. 30, 2016
Debt Instruments [Abstract]
Debt Disclosure	Indebtedness Debt consisted of the following: September 30, December 31, Term loan credit facility $ 236,486 $ 237,082 Revolving credit facility 55,000 55,000 Total debt 291,486 292,082 Less: Current portion 2,500 2,500 Total long-term debt $ 288,986 $ 289,582 Outstanding letters of credit under the revolving credit facility were $91,225 and $48,590 at September 30, 2016 and December 31, 2015 , respectively. The revolving credit facility contains maintenance financial covenants. At September 30, 2016 , we were in compliance with these covenants .

Partners' Equity

Partners' Equity	9 Months Ended
	Sep. 30, 2016
Partners' Capital [Abstract]
Partners' Capital Notes Disclosure	Partners' Equity (unit values in dollars) Cash Distributions We have adopted a policy pursuant to which we will distribute all of the available cash generated each quarter, as defined in the partnership agreement, subject to the approval of the board of directors of the General Partner. The per unit amount of available cash to be distributed each quarter, if any, will be distributed within 60 days following the end of such quarter. The following table summarizes the Partnership’s cash distribution activity during the period: Cash Available for Distribution per Unit (1) Distribution Amount Per Unit Total Distribution Amount First Quarter 2016 $ — $ 0.08 $ 5,001 Second Quarter 2016 0.14 — — Third Quarter 2016 0.15 0.14 8,753 _______________________ (1) Represents the aggregate cash available for distribution per unit attributable to the period indicated. This represents the difference between cash available for distribution and distributions paid in the table above. Restricted Units Non-employee directors of the General Partner are awarded an annual grant of $25 in restricted units, which vest over a period of three years , assuming continued service at vesting. In May 2016, we granted awards of 7,653 restricted common units at a grant date price of $9.80 per unit. In June 2016, we granted awards of 2,528 restricted common units at a grant date price of $9.89 per unit.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2016
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions Sales and Receivables Sales to related parties include motor fuels and asphalt sold to other Alon Energy subsidiaries at prices substantially determined by reference to market commodity pricing information. These sales are included in net sales in the consolidated statements of operations. Accounts receivable from related parties includes sales of motor fuels and is shown separately on the consolidated balance sheets. Costs Allocated from Alon Energy The Partnership is a subsidiary of Alon Energy and is operated as a component of the integrated operations of Alon Energy. As such, the executive officers of Alon Energy, who are employed by another subsidiary of Alon Energy, also serve as executive officers of the General Partner and Alon Energy’s other subsidiaries. (a) Corporate Overhead Allocations Alon Energy performs general corporate and administrative services and functions for us and their other subsidiaries, which include accounting, treasury, cash management, tax, information technology, insurance administration and claims processing, legal, environmental, risk management, audit, payroll and employee benefit processing and internal audit services. Alon Energy allocates the expenses actually incurred in performing these services to the Partnership based primarily on the estimated amount of time the individuals performing such services devote to our business and affairs relative to the amount of time they devote to the business and affairs of Alon Energy’s other subsidiaries. The management of Alon Energy and the General Partner consider these allocations to be reasonable. We record the amount of such allocations as selling, general and administrative expenses. Our allocation for selling, general and administrative expenses were $3,301 and $2,969 for the three months ended and $10,966 and $8,941 for the nine months ended September 30, 2016 and 2015 , respectively. (b) Labor Costs As we are operated as a component of Alon Energy’s integrated operations, we have no employees. As a result, employee expense costs for Alon Energy employees working in our operations have been allocated to us and recorded as payroll expense in direct operating and selling, general and administrative expenses. The allocated portion of Alon Energy’s employee expense costs included in direct operating expenses were $7,391 and $6,848 for the three months ended and $21,723 and $19,872 for the nine months ended September 30, 2016 and 2015 , respectively. The allocated portion of Alon Energy’s employee expense costs included in selling, general and administrative expenses were $1,178 and $997 for the three months ended and $3,413 and $4,103 for the nine months ended September 30, 2016 and 2015 , respectively. (c) Insurance Costs Insurance costs related to the Big Spring refinery and wholesale marketing operations are allocated to us by Alon Energy based on estimated insurance premiums on a stand-alone basis relative to Alon Energy’s total insurance premium. Our allocation for insurance costs included in direct operating expenses were $1,507 and $1,782 for the three months ended and $3,879 and $5,103 for the nine months ended September 30, 2016 and 2015 , respectively. Leasing Agreements In June 2014, we entered into six -year lease agreements with a subsidiary of Alon Energy to lease equipment at the Big Spring refinery. The lease agreements were effective July 1, 2014 and require fixed monthly payments amounting to $4,920 annually. Related to these agreements, we recorded selling, general and administrative expense of $1,230 for the three months ended September 30, 2016 and 2015 and $3,690 for the nine months ended September 30, 2016 and 2015 . Transactions with Delek US Holdings, Inc. In May 2015, Delek US Holdings, Inc. (“Delek”) completed the purchase of approximately 48% of Alon Energy’s outstanding common stock from Alon Israel Oil Company, Ltd. We have transactions with Delek that occur in the ordinary course of business. Including amounts prior to the transaction, we purchased refined products from Delek of $175 and $5,192 for the three months ended September 30, 2016 and 2015 , respectively, and $960 and $7,592 for the nine months ended September 30, 2016 and 2015 , respectively. Distributions During the nine months ended September 30, 2016 , we paid cash distributions of $13,754 , or $0.22 per unit, of which $11,220 was paid to Alon Energy. During the nine months ended September 30, 2015 , we paid cash distributions of $153,145 , or $2.45 per unit, of which $124,950 was paid to Alon Energy.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure	Commitments and Contingencies (a) Commitments In the normal course of business, we have long-term commitments to purchase, at market prices, utilities such as natural gas, electricity and water for use by our refinery, terminals and pipelines. We are also party to various refined product and crude oil supply and exchange agreements, which are typically short-term in nature or provide terms for cancellation. (b) Contingencies We are involved in various legal actions arising in the ordinary course of business. We believe the ultimate disposition of these matters will not have a material effect on our financial position, results of operations or liquidity. (c) Environmental We are subject to loss contingencies pursuant to federal, state, and local environmental laws and regulations. These laws and regulations govern the discharge of materials into the environment and may require us to incur future obligations to investigate the effects of the release or disposal of certain petroleum, chemical, and mineral substances at various sites; to remediate or restore these sites and to compensate others for damage to property and natural resources. These contingent obligations relate to sites owned by the Partnership and are associated with past or present operations. We are currently participating in environmental investigations, assessments and cleanups pertaining to the refinery, pipelines and terminals. We may be involved in additional future environmental investigations, assessments and cleanups. The magnitude of future costs are unknown and will depend on factors such as the nature and contamination at many sites, the timing, extent and method of the remedial actions which may be required, and the determination of our liability in proportion to other responsible parties. Environmental expenditures are expensed or capitalized depending on their future economic benefit. Expenditures that relate to an existing condition caused by past operations and that have no future economic benefit are expensed. Liabilities for expenditures of a non-capital nature are recorded when environmental assessment and/or remediation is probable, and the costs can be reasonably estimated. Substantially all amounts accrued are expected to be paid out over the next 15 years . The level of future expenditures for environmental remediation obligations cannot be determined with any degree of reliability. We have accrued environmental remediation obligations of $6,438 ( $1,716 current liability and $4,722 non-current liability) at September 30, 2016 , and $6,441 ( $1,716 accrued liability and $4,725 non-current liability) at December 31, 2015 .

Subsequent Event

Subsequent Event	9 Months Ended
	Sep. 30, 2016
Subsequent Events [Abstract]
Subsequent Event	Subsequent Event Distribution Declared On October 26, 2016 , the board of directors of the General Partner declared a cash distribution to our common unitholders of approximately $9,378 , or $0.15 per common unit. The cash distribution will be paid on November 22, 2016 to unitholders of record at the close of business on November 11, 2016 .

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
New Accounting Pronouncements, Policy	New Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) and the International Accounting Standards Board jointly issued a comprehensive new revenue recognition standard that provides accounting guidance for all revenue arising from contracts to provide goods or services to customers. This standard is intended to improve comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets. The standard allows for either full retrospective adoption or modified retrospective adoption. In August 2015, the FASB updated the guidance to include a one-year deferral of the effective date for the new revenue standard, making the requirements of the standard effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted for interim and annual periods beginning after December 15, 2016. We are evaluating the guidance to determine the method of adoption and the impact this standard will have on our consolidated financial statements. In July 2015, the FASB issued an accounting standards update simplifying the measurement of certain inventory. This updated standard simplifies the measurement of inventory by requiring certain inventory to be measured at the lower of cost or net realizable value. The amendments in this accounting standards update are effective for interim and annual periods beginning after December 15, 2016. This accounting standards update does not apply to the subsequent measurement of inventory measured using the last-in, first-out (“LIFO”) or retail inventory method, therefore the adoption of this guidance will not have a material effect on our financial position or results of operations. In February 2016, the FASB issued new guidance on the accounting for leases, which requires lessees to recognize assets and liabilities on the balance sheet for the present value of the rights and obligations created by all leases with terms of more than 12 months. The ASU also will require disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. The requirements from this guidance are effective for interim and annual periods beginning after December 31, 2018. We are evaluating the guidance to determine the impact this standard will have on our consolidated financial statements. In June 2016, the FASB issued an accounting standards update requiring the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. The requirements from the updated standard are effective for interim and annual periods beginning after December 15, 2019. We are evaluating the guidance to determine the impact this standard will have on our consolidated financial statements. In August 2016, the FASB issued an accounting standards update addressing eight specific cash flow issues with the objective of eliminating the existing diversity in practice. The amendments from this update are effective for interim and annual periods beginning after December 15, 2017. We do not expect application of this standard to have a material effect on our consolidated financial statements.

Fair Value (Tables)

Fair Value (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The following table sets forth the assets and liabilities measured at fair value on a recurring basis, by input level, in the consolidated balance sheets at September 30, 2016 and December 31, 2015 : Level 1 Level 2 Level 3 Total As of September 30, 2016 Assets: Fair value hedge of consigned inventory $ — $ 5,569 $ — $ 5,569 Liabilities: Commodity contracts (futures and forwards) 1,033 — — 1,033 As of December 31, 2015 Assets: Fair value hedge of consigned inventory $ — $ 11,564 $ — $ 11,564 Liabilities: Commodity contracts (futures and forwards) 40 — — 40

Derivative Financial Instrume21

Derivative Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value	The following tables present the effect of derivative instruments on the consolidated balance sheets: As of September 30, 2016 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives not designated as hedging instruments: Commodity contracts (futures and forwards) Accounts receivable $ 427 Accrued liabilities $ 1,460 Total derivatives not designated as hedging instruments 427 1,460 Derivatives designated as hedging instruments: Fair value hedge of consigned inventory Other assets $ 5,569 $ — Total derivatives designated as hedging instruments 5,569 — Total derivatives $ 5,996 $ 1,460 As of December 31, 2015 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives not designated as hedging instruments: Commodity contracts (futures and forwards) Accounts receivable $ 59 Accrued liabilities $ 99 Total derivatives not designated as hedging instruments 59 99 Derivatives designated as hedging instruments: Fair value hedge of consigned inventory Other assets $ 11,564 $ — Total derivatives designated as hedging instruments 11,564 — Total derivatives $ 11,623 $ 99
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location	The following tables present the effect of derivative instruments on the consolidated statements of operations: Derivatives in fair value hedging relationships: Gain (Loss) Recognized in Income For the Three Months Ended For the Nine Months Ended September 30, September 30, Location 2016 2015 2016 2015 Fair value hedge of consigned inventory (1) Interest expense $ (1,772 ) $ 5,990 $ (5,995 ) $ 4,495 Total derivatives $ (1,772 ) $ 5,990 $ (5,995 ) $ 4,495 _______________________ (1) Changes in the fair value hedge are substantially offset in earnings by changes in the hedged item.
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance	Derivatives not designated as hedging instruments: Gain (Loss) Recognized in Income For the Three Months Ended For the Nine Months Ended September 30, September 30, Location 2016 2015 2016 2015 Commodity contracts (futures and forwards) Cost of sales $ (1,199 ) $ 1,251 $ 4,998 $ 622 Total derivatives $ (1,199 ) $ 1,251 $ 4,998 $ 622
Offsetting Assets	The following table presents offsetting information regarding our derivatives by type of transaction as of September 30, 2016 and December 31, 2015 : Gross Amounts of Recognized Assets/Liabilities Gross Amounts offset in the Statement of Financial Position Net Amounts Presented in the Statement of Financial Position Gross Amounts Not offset in the Statement of Financial Position Net Amount Financial Instruments Cash Collateral Pledged As of September 30, 2016 Derivative Assets: Commodity contracts (futures and forwards) $ 1,174 $ (747 ) $ 427 $ (427 ) $ — $ — Fair value hedge of consigned inventory 5,569 — 5,569 — — 5,569 Derivative Liabilities: Commodity contracts (futures and forwards) $ 2,207 $ (747 ) $ 1,460 $ (427 ) $ — $ 1,033 As of December 31, 2015 Derivative Assets: Commodity contracts (futures and forwards) $ 192 $ (133 ) $ 59 $ (59 ) $ — $ — Fair value hedge of consigned inventory 11,564 — 11,564 — — 11,564 Derivative Liabilities: Commodity contracts (futures and forwards) $ 232 $ (133 ) $ 99 $ (59 ) $ — $ 40
Offsetting Liabilities	The following table presents offsetting information regarding our derivatives by type of transaction as of September 30, 2016 and December 31, 2015 : Gross Amounts of Recognized Assets/Liabilities Gross Amounts offset in the Statement of Financial Position Net Amounts Presented in the Statement of Financial Position Gross Amounts Not offset in the Statement of Financial Position Net Amount Financial Instruments Cash Collateral Pledged As of September 30, 2016 Derivative Assets: Commodity contracts (futures and forwards) $ 1,174 $ (747 ) $ 427 $ (427 ) $ — $ — Fair value hedge of consigned inventory 5,569 — 5,569 — — 5,569 Derivative Liabilities: Commodity contracts (futures and forwards) $ 2,207 $ (747 ) $ 1,460 $ (427 ) $ — $ 1,033 As of December 31, 2015 Derivative Assets: Commodity contracts (futures and forwards) $ 192 $ (133 ) $ 59 $ (59 ) $ — $ — Fair value hedge of consigned inventory 11,564 — 11,564 — — 11,564 Derivative Liabilities: Commodity contracts (futures and forwards) $ 232 $ (133 ) $ 99 $ (59 ) $ — $ 40

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
Schedule of Inventory	Carrying value of inventories consisted of the following: September 30, December 31, Crude oil, refined products and blendstocks $ 39,909 $ 24,548 Crude oil consignment inventory (Note 5) (1) 838 (95 ) Materials and supplies 11,143 10,991 Total inventories $ 51,890 $ 35,444 _______________________ (1) The fair value of the hedged item designated in our fair value hedge reduced the carrying value of our consigned inventory valued at LIFO below zero at December 31, 2015 .

Property, Plant and Equipment23

Property, Plant and Equipment, Net (Tables)	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment, Net [Abstract]
Property, Plant and Equipment, Net	Property, plant and equipment, net consisted of the following: September 30, December 31, Refining facilities $ 725,905 $ 709,779 Accumulated depreciation (302,718 ) (275,160 ) Property, plant and equipment, net $ 423,187 $ 434,619

Additional Financial Informat24

Additional Financial Information (Tables)	9 Months Ended
	Sep. 30, 2016
Additional Financial Information [Abstract]
Schedule of Other Assets	Other Assets, Net September 30, December 31, Deferred turnaround and catalyst cost $ 38,199 $ 43,021 Receivable from supply and offtake agreement (Note 5) 6,290 6,290 Fair value hedge of consigned inventory (Note 3) 5,569 11,564 Other 9,344 10,362 Total other assets $ 59,402 $ 71,237
Schedule of Accrued Liabilities and Other Non-Current Liabilities	Accrued Liabilities and Other Non-Current Liabilities September 30, December 31, Accrued Liabilities: Taxes other than income taxes, primarily excise taxes $ 25,186 $ 25,018 Accrued finance charges 293 394 Environmental accrual (Note 11) 1,716 1,716 Commodity contracts 1,460 99 Other 8,304 13,480 Total accrued liabilities $ 36,959 $ 40,707 Other Non-Current Liabilities: Consignment inventory obligation (Note 5) $ 12,772 $ 21,325 Environmental accrual (Note 11) 4,722 4,725 Asset retirement obligations 3,086 2,927 RINs financing transactions 68,978 — Other 2,537 2,536 Total other non-current liabilities $ 92,095 $ 31,513

Indebtedness (Tables)

Indebtedness (Tables)	9 Months Ended
	Sep. 30, 2016
Debt Instruments [Abstract]
Schedule of Debt	Debt consisted of the following: September 30, December 31, Term loan credit facility $ 236,486 $ 237,082 Revolving credit facility 55,000 55,000 Total debt 291,486 292,082 Less: Current portion 2,500 2,500 Total long-term debt $ 288,986 $ 289,582

Partners' Equity (Tables)

Partners' Equity (Tables)	9 Months Ended
	Sep. 30, 2016
Distributions Made to Members or Limited Partners
Distributions Made to Limited Partner, by Distribution	The following table summarizes the Partnership’s cash distribution activity during the period: Cash Available for Distribution per Unit (1) Distribution Amount Per Unit Total Distribution Amount First Quarter 2016 $ — $ 0.08 $ 5,001 Second Quarter 2016 0.14 — — Third Quarter 2016 0.15 0.14 8,753 _______________________ (1) Represents the aggregate cash available for distribution per unit attributable to the period indicated. This represents the difference between cash available for distribution and distributions paid in the table above.

Fair Value (Details)

Fair Value (Details) - Fair Value, Measurements, Recurring - Forward Contracts - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Commodity Contracts
Liabilities:
Derivative Liabilities	$ 1,033	$ 40
Fair Value Hedge
Assets:
Derivative Assets	5,569	11,564
Level 1 | Commodity Contracts
Liabilities:
Derivative Liabilities	1,033	40
Level 1 | Fair Value Hedge
Assets:
Derivative Assets	0	0
Level 2 | Commodity Contracts
Liabilities:
Derivative Liabilities	0	0
Level 2 | Fair Value Hedge
Assets:
Derivative Assets	5,569	11,564
Level 3 | Commodity Contracts
Liabilities:
Derivative Liabilities	0	0
Level 3 | Fair Value Hedge
Assets:
Derivative Assets	$ 0	$ 0

Schedule of Derivative Instrume

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Derivatives, Fair Value
Derivative Assets	$ 5,996	$ 11,623
Derivative Liabilities	1,460	99
Forward Contracts | Commodity Contracts
Derivatives, Fair Value
Derivative Asset, Fair Value, Amount Not Offset Against Collateral	427	59
Derivative Liability, Fair Value, Amount Not Offset Against Collateral	1,460	99
Forward Contracts | Fair Value Hedge
Derivatives, Fair Value
Derivative Asset, Fair Value, Amount Not Offset Against Collateral	5,569	11,564
Not Designated as Hedging Instrument
Derivatives, Fair Value
Derivative Asset, Fair Value, Amount Not Offset Against Collateral	427	59
Derivative Liability, Fair Value, Amount Not Offset Against Collateral	1,460	99
Not Designated as Hedging Instrument | Accounts Receivable | Forward Contracts | Commodity Contracts
Derivatives, Fair Value
Derivative Asset, Fair Value, Amount Not Offset Against Collateral	427	59
Not Designated as Hedging Instrument | Accrued Liabilities | Forward Contracts | Commodity Contracts
Derivatives, Fair Value
Derivative Liability, Fair Value, Amount Not Offset Against Collateral	1,460	99
Designated as Hedging Instrument
Derivatives, Fair Value
Derivative Asset, Fair Value, Amount Not Offset Against Collateral	5,569	11,564
Derivative Liability, Fair Value, Amount Not Offset Against Collateral	0	0
Designated as Hedging Instrument | Other Assets | Forward Contracts | Fair Value Hedge
Derivatives, Fair Value
Derivative Asset, Fair Value, Amount Not Offset Against Collateral	5,569	11,564
Designated as Hedging Instrument | Other Noncurrent Liabilities | Forward Contracts | Fair Value Hedge
Derivatives, Fair Value
Derivative Liability, Fair Value, Amount Not Offset Against Collateral	$ 0	$ 0

Schedule of Fair Value Hedging

Schedule of Fair Value Hedging Instruments (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Derivative Instruments, Gain (Loss)
Gain (Loss) on Fair Value Hedges Recognized in Earnings		$ (1,772)	$ 5,990	$ (5,995)	$ 4,495
Interest Expense | Forward Contracts | Fair Value Hedge
Derivative Instruments, Gain (Loss)
Gain (Loss) on Fair Value Hedges Recognized in Earnings	[1]	$ (1,772)	$ 5,990	$ (5,995)	$ 4,495
[1]	Changes in the fair value hedge are substantially offset in earnings by changes in the hedged item.

Schedule of Derivative Instru30

Schedule of Derivative Instruments, Gain (Loss) in Statements of Financial Performance (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Derivative Instruments, Gain (Loss)
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	$ (1,199)	$ 1,251	$ 4,998	$ 622
Cost of Sales | Forward Contracts | Commodity Contracts
Derivative Instruments, Gain (Loss)
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	$ (1,199)	$ 1,251	$ 4,998	$ 622

Schedule of Offsetting Derivati

Schedule of Offsetting Derivative Instruments by Type (Details) - Forward Contracts - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Commodity Contracts
Derivative Asset, Fair Value, Net
Gross Amounts of Recognized Assets	$ 1,174	$ 192
Gross Amounts offset in the Statement of Financial Position	(747)	(133)
Net Amounts of Assets Presented in the Statement of Financial Position	427	59
Derivative, Collateral, Obligation to Return Securities	(427)	(59)
Cash Collateral Received	0	0
Derivative Asset, Net Amount	0	0
Derivative Liability, Fair Value, Net
Gross Amounts of Recognized Liabilities	2,207	232
Gross Amounts offset in the Statement of Financial Position	(747)	(133)
Net Amounts of Liabilities Presented in the Statement of Financial Position	1,460	99
Derivative, Collateral, Right to Reclaim Securities	(427)	(59)
Cash Collateral Pledged	0	0
Derivative Liability, Net Amount	1,033	40
Fair Value Hedge
Derivative Asset, Fair Value, Net
Gross Amounts of Recognized Assets	5,569	11,564
Gross Amounts offset in the Statement of Financial Position	0	0
Net Amounts of Assets Presented in the Statement of Financial Position	5,569	11,564
Derivative, Collateral, Obligation to Return Securities	0	0
Cash Collateral Received	0	0
Derivative Asset, Net Amount	$ 5,569	$ 11,564

Derivative Financial Instrume32

Derivative Financial Instruments Textuals (Details) bbl in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016USD ($)bbl	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)bbl	Sep. 30, 2015USD ($)
Derivative
Compliance Program Costs | $	$ 3,712	$ 1,868	$ 6,620	$ 8,369
Forward Contracts | Fair Value Hedge
Derivative
Notional Amount of Fair Value Hedge Instruments | bbl	135		135

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Crude oil, refined products and blendstocks	$ 39,909	$ 24,548
Crude oil consignment inventory (Note 5) (1)	838	(95)	[1]
Materials and supplies	11,143	10,991
Total inventories	$ 51,890	$ 35,444
[1]	The fair value of the hedged item designated in our fair value hedge reduced the carrying value of our consigned inventory valued at LIFO below zero at December 31, 2015.

Inventories Textuals (Details)

Inventories Textuals (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Inventory lower of cost or market reserve	$ 7,350	$ 9,396
Excess of replacement or current costs over stated LIFO value, net of the fair value hedged item	$ 3,937	$ 6,387

Inventory Financing Agreement T

Inventory Financing Agreement Textuals (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Accounts payable, net, current	$ 292,542	$ 253,325
Receivable from supply and offtake agreement	6,290	6,290
Derivative liabilities	1,460	99
Consigned inventory | Forward Contracts
Derivative assets	427
Derivative liabilities		99
J.Aron
Accounts payable, net, current	18,455
Accounts receivable, net, current		4,975
Receivable from supply and offtake agreement	6,290	6,290
Non-current liability for consignment inventory	$ 7,203	$ 9,761

Property, Plant and Equipment36

Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Property, Plant and Equipment, Net
Refining facilities	$ 725,905	$ 709,779
Accumulated depreciation	(302,718)	(275,160)
Property, plant and equipment, net	$ 423,187	$ 434,619

Other Assets (Details)

Other Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Other Assets [Abstract]
Deferred turnaround and catalyst cost	$ 38,199	$ 43,021
Receivable from supply and offtake agreement (Note 5)	6,290	6,290
Fair value hedge of consigned inventory (Note 3)	5,569	11,564
Other	9,344	10,362
Total other assets	$ 59,402	$ 71,237

Additional Financial Informat38

Additional Financial Information Accounts Payable Textuals (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Accounts Payable [Abstract]
Accounts payable, RINs financing transactions	$ 123,844	$ 91,179

Accrued Liabilities and Other N

Accrued Liabilities and Other Non-Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Accrued Liabilities:
Taxes other than income taxes, primarily excise taxes	$ 25,186	$ 25,018
Accrued finance charges	293	394
Environmental accrual (Note 11)	1,716	1,716
Commodity contracts	1,460	99
Other	8,304	13,480
Total accrued liabilities	36,959	40,707
Other Non-Current Liabilities:
Consignment inventory obligation (Note 5)	12,772	21,325
Environmental accrual (Note 11)	4,722	4,725
Asset retirement obligations	3,086	2,927
RINs financing transactions	68,978	0
Other	2,537	2,536
Total other non-current liabilities	$ 92,095	$ 31,513

Indebtedness (Details)

Indebtedness (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Debt Instrument
Total debt	$ 291,486	$ 292,082
Less: Current portion	2,500	2,500
Total long-term debt	288,986	289,582
Term loan credit facility
Debt Instrument
Total debt	236,486	237,082
Revolving credit facility
Debt Instrument
Total debt	$ 55,000	$ 55,000

Indebtedness Textuals (Details)

Indebtedness Textuals (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Debt Instrument
Letters of credit outstanding, amount	$ 91,225	$ 48,590
Debt instrument, covenant compliance	we were in compliance with these covenants

Partners' Equity (Details)

Partners' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended				9 Months Ended
		Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Distribution Made to Limited Partner
Distribution Made to Limited Partner, Distributions Paid, Per Unit		$ 0.14			$ 1.04	$ 0.22	$ 2.45
Cash Distribution
Distribution Made to Limited Partner
Cash Available for Distributions, Per Unit	[1]	0.15	$ 0.14	$ 0
Distribution Made to Limited Partner, Distributions Paid, Per Unit		$ 0.14	$ 0	$ 0.08
Distribution Made to Limited Partner, Cash Distributions Paid		$ 8,753	$ 0	$ 5,001
[1]	Represents the aggregate cash available for distribution per unit attributable to the period indicated. This represents the difference between cash available for distribution and distributions paid in the table above.

Partners' Equity Restricted Uni

Partners' Equity Restricted Units (Details) - Restricted Stock - $ / shares	1 Months Ended		9 Months Ended
	Jun. 30, 2016	May 31, 2016	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			3 years
Stock Issued During Period, Shares, Restricted Stock Award, Gross	2,528	7,653
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 9.89	$ 9.80

Related-Party Transactions (Det

Related-Party Transactions (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended		3 Months Ended		9 Months Ended
	May 31, 2015	Jun. 30, 2014	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Related Party Transaction
Distribution Made to Limited Partner, Distributions Paid, Per Unit			$ 0.14	$ 1.04	$ 0.22	$ 2.45
Distributions
Related Party Transaction
Distribution Made to Limited Partner, Cash Distributions Paid					$ 13,754	$ 153,145
Distribution Made to Limited Partner, Distributions Paid, Per Unit					$ 0.22	$ 2.45
Alon Energy | Corporate Overhead Allocation
Related Party Transaction
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party			$ 3,301	$ 2,969	$ 10,966	$ 8,941
Alon Energy | Labor Costs
Related Party Transaction
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party			1,178	997	3,413	4,103
Related Party Transaction, Expenses from Transactions with Related Party			7,391	6,848	21,723	19,872
Alon Energy | Insurance Costs
Related Party Transaction
Related Party Transaction, Expenses from Transactions with Related Party			1,507	1,782	3,879	5,103
Alon Energy | Leasing Agreements
Related Party Transaction
Lessee Leasing Arrangements, Operating Leases, Term of Contract		6 years
Operating Leases, Future Minimum Payments Due, Next Twelve Months			4,920		4,920
Operating Leases, Rent Expense			1,230	1,230	3,690	3,690
Alon Energy | Distributions
Related Party Transaction
Distribution Made to Limited Partner, Cash Distributions Paid					11,220	124,950
Delek Holdings, Inc.
Related Party Transaction
Sale of Stock, Percentage of Ownership after Transaction	48.00%
Related Party Transaction, Purchases from Related Party			$ 175	$ 5,192	$ 960	$ 7,592

Remediation Obligations (Detail

Remediation Obligations (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Site Contingency, Time Frame of Disbursements	15 years
Accrual for Environmental Loss Contingencies	$ 6,438	$ 6,441
Accrued Environmental Loss Contingencies, Current	1,716	1,716
Accrued Environmental Loss Contingencies, Noncurrent	$ 4,722	$ 4,725

Subsequent Event (Details)

Subsequent Event (Details) - Cash Distribution - Subsequent Event $ / shares in Units, $ in Thousands	Oct. 26, 2016USD ($)$ / shares
Subsequent Event
Distribution Made to Limited Partner, Cash Distributions Declared | $	$ 9,378
Distribution Made to Limited Partner, Distributions Declared, Per Unit | $ / shares	$ 0.15