Valero Energy Partners (VLP) 10-Q 6 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 29, 2016
Entity Information
Entity Registrant Name	VALERO ENERGY PARTNERS LP
Entity Central Index Key	1,583,103
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Common Unitholders Public [Member]
Entity Information
Entity Common Stock, Units Outstanding		37,262,986
Subordinated Unitholder Valero [Member]
Entity Information
Entity Common Stock, Units Outstanding		28,789,989
General Partner Valero [Member]
Entity Information
Entity Common Stock, Units Outstanding		1,347,702

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 102,278	$ 80,783
Receivables from related party	20,922	18,088
Prepaid expenses and other	831	632
Total current assets	124,031	99,503
Property and equipment, at cost	1,021,289	1,010,881
Accumulated depreciation	(272,679)	(263,599)
Property and equipment, net	748,610	747,282
Deferred charges and other assets, net	3,155	3,322
Total assets	875,796	850,107
Current liabilities:
Current portion of debt and capital lease obligations	587	913
Accounts payable	6,621	9,264
Accrued liabilities	1,201	1,062
Accrued liabilities – related party	808	628
Taxes other than income taxes	1,270	1,276
Deferred revenue from related party	451	129
Total current liabilities	10,938	13,272
Debt and capital lease obligations, net of current portion	175,155	175,246
Notes payable to related party	370,000	370,000
Deferred income taxes	415	320
Other long-term liabilities	$ 1,129	$ 1,116
Commitments and contingencies
Partners' capital:
Common unitholders – public (21,515,609 and 21,509,651 units outstanding)	$ 587,736	$ 581,489
Common unitholder – Valero (15,018,602 and 15,018,602 units outstanding)	35,234	28,430
Subordinated unitholder – Valero (28,789,989 and 28,789,989 units outstanding)	(300,919)	(313,961)
General partner – Valero (1,332,829 and 1,332,829 units outstanding)	(3,892)	(5,805)
Total partners’ capital	318,159	290,153
Total liabilities and partners’ capital	$ 875,796	$ 850,107

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - shares	Mar. 31, 2016	Dec. 31, 2015
Partners' capital:
Common unitholders – public, units outstanding	21,515,609	21,509,651
Common unitholder – Valero, units outstanding	15,018,602	15,018,602
Subordinated unitholder – Valero, units outstanding	28,789,989	28,789,989
General partner – Valero, units outstanding	1,332,829	1,332,829

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Operating revenues – related party		$ 78,767	$ 41,886	[1]
Costs and expenses:
Operating expenses (b)	[2]	19,096	22,624	[1]
General and administrative expenses (c)	[3]	4,161	3,652	[1]
Depreciation expense		9,388	8,310	[1]
Total costs and expenses		32,645	34,586	[1]
Operating income		46,122	7,300	[1]
Other income, net		77	111	[1]
Interest and debt expense, net of capitalized interest (d)	[4]	(2,659)	(601)	[1]
Income before income taxes		43,540	6,810	[1]
Income tax expense (benefit)		242	(126)	[1]
Net income		43,298	6,936	[1]
Less: Net loss attributable to Predecessor		0	(15,185)	[1]
Net income attributable to partners		43,298	22,121
Less: General partner’s interest in net income		3,504	852
Limited partners’ interest in net income		$ 39,794	$ 21,269
Net income per limited partner unit – basic and diluted:
Common units		$ 0.61	$ 0.37
Subordinated units		$ 0.61	$ 0.36
Weighted-average limited partner units outstanding:
Common units – basic and diluted		36,520	29,426
Subordinated units – basic and diluted		28,790	28,790
Cash distribution declared per unit		$ 0.3400	$ 0.2775
[1]	Financial information has been retrospectively adjusted for the acquisition of the Corpus Christi Terminal Services Business. See Notes 1 and 3.
[2]	Includes operating expenses – related party of $9,910 thousand and $8,906 thousand for the three months ended March 31, 2016 and 2015, respectively.
[3]	Includes general and administrative expenses – related party of $2,858 thousand and $2,599 thousand for the three months ended March 31, 2016 and 2015, respectively.
[4]	Includes interest and debt expense – related party of $1,566 thousand and $190 thousand for the three months ended March 31, 2016 and 2015, respectively.

Consolidated Statements of Inc5

Consolidated Statements of Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Supplemental information:
(b) Operating expenses – related party	$ 9,910	$ 8,906
(c) General and administrative expenses – related party	2,858	2,599
(d) Interest and debt expense – related party	$ 1,566	$ 190

Consolidated Statements of Part

Consolidated Statements of Partners' Capital (Unaudited) - USD ($) $ in Thousands	Total		Common Unitholders Public [Member]	Common Unitholder Valero [Member]	Subordinated Unitholder Valero [Member]	General Partner Valero [Member]	Net Investment [Member]
Beginning balance at Dec. 31, 2014	$ 965,099		$ 374,954	$ 58,844	$ 146,804	$ 4,617	$ 379,880
Increase (Decrease) in Partners' Capital Roll Forward
Net income (loss) attributable to Predecessor	(15,185)	[1]	0	0	0	0	(15,185)
Net income (loss) attributable to partners	22,121		6,305	4,442	10,522	852	0
Net transfers from Valero Energy Corporation	21,268		0	0	0	0	21,268
Allocation of Valero Energy Corporation’s net investment in the Houston and St. Charles Terminal Services Business	0		0	82,330	205,396	8,383	(296,109)
Consideration paid to Valero Energy Corporation for the acquisition of the Houston and St. Charles Terminal Services Business	(671,220)		0	(186,625)	(465,592)	(19,003)	0
Units issued to Valero Energy Corporation in connection with the acquisition of the Houston and St. Charles Terminal Services Business	100,000		0	98,000	0	2,000	0
Noncash capital contributions from Valero Energy Corporation	4,839		0	1,497	3,206	136	0
Cash distributions to unitholders	(15,826)		(4,588)	(3,070)	(7,658)	(510)	0
Distribution equivalent right payments	(3)		(3)	0	0	0	0
Unit-based compensation	41		41	0	0	0	0
Ending balance at Mar. 31, 2015	411,134		376,709	55,418	(107,322)	(3,525)	89,854
Beginning balance at Dec. 31, 2015	290,153		581,489	28,430	(313,961)	(5,805)	0
Increase (Decrease) in Partners' Capital Roll Forward
Net income (loss) attributable to Predecessor	0
Net income (loss) attributable to partners	43,298		13,101	9,151	17,542	3,504	0
Noncash capital contributions from Valero Energy Corporation	7,390		0	2,459	4,713	218	0
Cash distributions to unitholders	(22,707)		(6,879)	(4,806)	(9,213)	(1,809)	0
Offering costs	(5)		(5)	0	0	0	0
Distribution equivalent right payments	(4)		(4)	0	0	0	0
Unit-based compensation	34		34	0	0	0	0
Ending balance at Mar. 31, 2016	$ 318,159		$ 587,736	$ 35,234	$ (300,919)	$ (3,892)	$ 0
[1]	Financial information has been retrospectively adjusted for the acquisition of the Corpus Christi Terminal Services Business. See Notes 1 and 3.

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	[1]
Cash flows from operating activities:
Net income	$ 43,298	$ 6,936
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	9,388	8,310
Deferred income tax expense (benefit)	95	(249)
Changes in current assets and current liabilities	(1,986)	(7,755)
Changes in deferred charges and credits and other operating activities, net	111	418
Net cash provided by operating activities	50,906	7,660
Cash flows from investing activities:
Capital expenditures	(6,267)	(11,934)
Acquisition from Valero Energy Corporation	0	(296,109)
Net cash used in investing activities	(6,267)	(308,043)
Cash flows from financing activities:
Proceeds from debt borrowings	0	200,000
Proceeds from note payable to related party	0	160,000
Payments of capital lease obligations	(326)	(284)
Payment of offering costs	(107)	0
Excess purchase price paid to Valero Energy Corporation over the carrying value of acquired assets	0	(275,111)
Cash distributions to unitholders and distribution equivalent right payments	(22,711)	(15,829)
Net transfers from Valero Energy Corporation	0	22,738
Net cash provided by (used in) financing activities	(23,144)	91,514
Net increase (decrease) in cash and cash equivalents	21,495	(208,869)
Cash and cash equivalents at beginning of period	80,783	236,579
Cash and cash equivalents at end of period	$ 102,278	$ 27,710
[1]	Financial information has been retrospectively adjusted for the acquisition of the Corpus Christi Terminal Services Business. See Notes 1 and 3.

Business and Basis of Presentat

Business and Basis of Presentation	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BUSINESS AND BASIS OF PRESENTATION	1. BUSINESS AND BASIS OF PRESENTATION Business Valero Energy Partners LP (the Partnership) is a fee-based, master limited partnership formed by Valero (defined below) in July 2013 to own, operate, develop, and acquire crude oil and refined petroleum products pipelines, terminals, and other transportation and logistics assets. References in this report to “Partnership,” “we,” “us,” or “our” refer to Valero Energy Partners LP, one or more of its subsidiaries, or all of them taken as a whole. References in this report to “Valero” refer collectively to Valero Energy Corporation and its subsidiaries, other than Valero Energy Partners LP, any of its subsidiaries, or its general partner. We acquired the Houston and St. Charles Terminal Services Business and the Corpus Christi Terminal Services Business from Valero (collectively, the Acquisitions) on March 1, 2015 and October 1, 2015 , respectively. See Note 3 for further discussion of the Acquisitions. As of March 31, 2016 , our assets consisted of crude oil and refined petroleum products pipeline and terminal systems in the United States (U.S.) Gulf Coast and U.S. Mid-Continent regions that are integral to the operations of nine of Valero’s refineries. On April 1, 2016 , we acquired Valero’s McKee Terminal Services Business as further described in Note 3 . We generate operating revenues by providing fee-based transportation and terminaling services to Valero. Basis of Presentation Our consolidated financial statements include the accounts of the Partnership as well as our Predecessor (defined below). All intercompany accounts and transactions have been eliminated. The Acquisitions were accounted for as transfers of businesses between entities under the common control of Valero. As entities under the common control of Valero, we recorded the Acquisitions on our balance sheet at Valero’s carrying value rather than fair value. Transfers between entities under common control are accounted for as though the transfer occurred as of the beginning of the period of transfer, and prior period financial statements and financial information are retrospectively adjusted to furnish comparative information. Accordingly, the Partnership’s financial statements and related notes have been retrospectively adjusted to include the historical results of the Acquisitions for all periods presented prior to the effective dates of each acquisition. We refer to the historical results of the Acquisitions prior to their respective acquisition dates as those of our “Predecessor.” The combined financial statements of our Predecessor were derived from the consolidated financial statements and accounting records of Valero and reflect the combined historical financial position, results of operations, and cash flows of our Predecessor as if the Acquisitions had been combined for periods prior to the effective dates of each acquisition. There were no transactions between the operations of our Predecessor; therefore, there were no intercompany transactions or accounts to be eliminated in connection with the combination of those operations. In addition, our Predecessor’s statements of income include direct charges for the management and operation of our assets and certain expenses allocated by Valero for general corporate services, such as treasury, accounting, and legal services. These expenses were charged, or allocated, to our Predecessor based on the nature of the expenses. Prior to the Acquisitions, our Predecessor transferred cash to Valero daily and Valero funded our Predecessor’s operating and investing activities as needed. Therefore, transfers of cash to and from Valero’s cash management system are reflected as a component of net investment and are reflected as a financing activity in our statements of cash flows. In addition, interest expense was not included on the net cash transfers from Valero. The financial information presented for the periods after the effective dates of the Acquisitions represents the consolidated financial position, results of operations, and cash flows of the Partnership. These unaudited financial statements have been prepared in accordance with U.S. 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 U.S. GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All such adjustments are of a normal recurring nature unless disclosed otherwise. Financial information for the three months ended March 31, 2016 and 2015 included in these Condensed Notes to Consolidated Financial Statements is derived from our unaudited financial statements. Operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. The balance sheet as of December 31, 2015 has been derived from our audited financial statements as of that date. For further information, refer to our financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2015 .

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. On an ongoing basis, we review our estimates based on currently available information. Changes in facts and circumstances may result in revised estimates. Accounting Pronouncements Adopted During the Period In April 2015, the provisions of Accounting Standards Codification (ASC) Subtopic 835-30, “Interest–Imputation of Interest,” were amended to simplify the presentation of debt issuance costs. The guidance requires that debt issuance costs related to a note be reported in the balance sheet as a direct deduction from the face amount of that note, consistent with debt discounts, and that amortization of debt issuance costs be reported as interest expense. In August 2015, these provisions were further amended with guidance from the Securities and Exchange Commission staff that they would not object to an entity deferring and presenting debt issuance costs related to a line-of-credit arrangement as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. These provisions were effective for annual reporting periods beginning after December 15, 2015, and interim periods within those annual periods. The adoption of this guidance effective January 1, 2016 did not affect our financial position or results of operations as our debt issuance costs are associated with our revolving credit facility and therefore were not required to be reclassified. Also in April 2015, the provisions of ASC Topic 260, “Earnings Per Share,” were amended to provide guidance on how master limited partnerships apply the two-class method of calculating earnings per unit for historical periods when they receive net assets in a dropdown transaction that is accounted for as a transaction between entities under common control as required under Subtopic 805-50, “Business Combinations–Related Issues.” The amendments specify that for purposes of calculating earnings per unit under the two-class method for periods before the date of a dropdown transaction, earnings or losses of a transferred business should be allocated entirely to the general partner. Qualitative disclosures are also required to describe how the rights to earnings or losses differ before and after the dropdown transaction for purposes of computing earnings per unit under the two-class method. These provisions were effective for annual reporting periods beginning after December 15, 2015, and interim periods within those annual periods. We have historically calculated our net income per unit after a dropdown transaction as prescribed by these provisions; therefore, the adoption of this guidance effective January 1, 2016 did not affect our financial position or results of operations, but resulted in additional disclosures as shown in Note 9. In November 2015, the provisions of ASC Topic 740, “Income Taxes,” were amended to simplify the presentation of deferred income taxes. The amendments require that deferred tax liabilities and assets be classified as noncurrent in a classified balance sheet. The amendments are effective for financial statements for annual periods beginning after December 15, 2016, and interim periods within those annual periods, with early adoption permitted as of the beginning of any interim or annual period. Effective January 1, 2016, we adopted this guidance on a retrospective basis, but such adoption did not affect our financial position as we had no current deferred tax amounts to reclassify. Accounting Pronouncements Not Yet Adopted In May 2014, the ASC was amended and a new accounting standard, ASC Topic 606, “Revenue from Contracts with Customers,” was issued to clarify the principles for recognizing revenue. The standard is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual periods. We are currently evaluating the effect that adopting this standard will have on our financial statements and related disclosures. In January 2016, the provisions of ASC Subtopic 825-10, “Financial Instruments–Overall,” were amended to enhance the reporting model for financial instruments regarding certain aspects of recognition, measurement, presentation, and disclosure. These provisions are effective for annual reporting periods beginning after December 15, 2017, and interim periods within those annual periods. We are currently evaluating the effect that adopting this standard will have on our financial statements and related disclosures. In February 2016, the ASC was amended and a new accounting standard, ASC Topic 842, “Leases,” was issued to increase the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The new standard is effective for public companies for annual reporting periods beginning after December 15, 2018, and interim reporting periods within those annual periods, with early adoption permitted. We are currently evaluating the effect that adopting this standard will have on our financial statements and related disclosures. In March 2016, the provisions of ASC Topic 718, “Compensation–Stock Compensation,” were amended to simplify the accounting and reporting for employee share-based payments. These amendments involve several aspects of the accounting for share-based payment transactions, including accounting for income taxes as it pertains to the timing of when excess tax benefits are recognized and to the recognition of excess tax benefits and tax deficiencies in the statements of income, forfeitures, minimum statutory tax withholding requirements, as well as classification of excess tax benefits and employee taxes paid on the statement of cash flows. These provisions are effective for public companies for annual reporting periods beginning after December 15, 2016, and interim periods within those annual periods, with early adoption permitted. An entity that elects early adoption must adopt all of the amendments in the same period. The amendments provide specific transition and disclosure guidance for each provision. We are currently evaluating the effect that adopting this standard will have on our financial statements and related disclosures.

Acquisitions

Acquisitions	3 Months Ended
	Mar. 31, 2016
Business Combinations [Abstract]
ACQUISITIONS	3. ACQUISITIONS Acquisitions in 2015 Houston and St. Charles Terminal Services Business Effective March 1, 2015 , we acquired two subsidiaries from Valero that own and operate crude oil, intermediates, and refined petroleum products terminals supporting Valero’s Houston Refinery (in Houston, Texas) and St. Charles Refinery (in Norco, Louisiana) for total consideration of $671.2 million , which consisted of (i) a cash distribution of $571.2 million and (ii) the issuance of 1,908,100 common units and 38,941 general partner units having an aggregate value of $100.0 million . We funded the cash distribution to Valero with $211.2 million of our cash on hand, $200.0 million of borrowings under our revolving credit facility, and $160.0 million of proceeds from a subordinated credit agreement we entered into with Valero. See Note 6 for further discussion of the borrowings under our revolving credit facility and this subordinated credit agreement. Corpus Christi Terminal Services Business Effective October 1, 2015 , we acquired Valero’s Corpus Christi East Terminal and Corpus Christi West Terminal (collectively, the Corpus Christi Terminal Services Business) for total consideration of $465.0 million , which consisted of (i) a cash distribution of $395.0 million and (ii) the issuance of 1,570,513 common units and 32,051 general partner units having an aggregate value of $70.0 million . We funded the cash distribution to Valero with $395.0 million of proceeds from a subordinated credit agreement with Valero. The Corpus Christi Terminal Services Business is engaged in the business of terminaling crude oil, intermediates, and refined petroleum products at terminals in Corpus Christi, Texas and supports Valero’s Corpus Christi East and West Refineries. See Note 6 for further discussion of the borrowings under this subordinated credit agreement. Presentation of Reported Financial Information The following table presents our previously reported statement of income for the three months ended March 31, 2015 retrospectively adjusted for the acquisition of the Corpus Christi Terminal Services Business (in thousands). The results of operations of the Houston and St. Charles Terminal Services Business are included in our previously reported statement of income for the three months ended March 31, 2015 . Three Months Ended March 31, 2015 Valero Energy Partners LP (Previously Reported) Corpus Christi Terminal Services Business Valero Energy Partners LP (Currently Reported) Operating revenues – related party $ 41,886 $ — $ 41,886 Costs and expenses: Operating expenses 17,864 4,760 22,624 General and administrative expenses 3,565 87 3,652 Depreciation expense 7,488 822 8,310 Total costs and expenses 28,917 5,669 34,586 Operating income (loss) 12,969 (5,669 ) 7,300 Other income, net 111 — 111 Interest and debt expense, net of capitalized interest (601 ) — (601 ) Income (loss) before income taxes 12,479 (5,669 ) 6,810 Income tax benefit (126 ) — (126 ) Net income (loss) 12,605 (5,669 ) 6,936 Less: Net loss attributable to Predecessor (9,516 ) (5,669 ) (15,185 ) Net income attributable to partners $ 22,121 $ — $ 22,121 The following table presents our previously reported statement of cash flows for the three months ended March 31, 2015 retrospectively adjusted for the acquisition of the Corpus Christi Terminal Services Business (in thousands). The cash flows of the Houston and St. Charles Terminal Services Business are included in our previously reported statement of cash flows for the three months ended March 31, 2015 . Three Months Ended March 31, 2015 Valero Energy Partners LP (Previously Reported) Corpus Christi Terminal Services Business Valero Energy Partners LP (Currently Reported) Cash flows from operating activities: Net income (loss) $ 12,605 $ (5,669 ) $ 6,936 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation expense 7,488 822 8,310 Deferred income tax benefit (249 ) — (249 ) Changes in current assets and current liabilities (7,755 ) — (7,755 ) Changes in deferred charges and credits and other operating activities, net 418 — 418 Net cash provided by (used in) operating activities 12,507 (4,847 ) 7,660 Cash flows from investing activities: Capital expenditures (4,978 ) (6,956 ) (11,934 ) Acquisition of the Houston and St. Charles Terminal Services Business from Valero Energy Corporation (296,109 ) — (296,109 ) Net cash used in investing activities (301,087 ) (6,956 ) (308,043 ) Cash flows from financing activities: Proceeds from debt borrowings 200,000 — 200,000 Proceeds from note payable to related party 160,000 — 160,000 Payments of capital lease obligations (284 ) — (284 ) Excess purchase price paid to Valero Energy Corporation over the carrying value of the Houston and St. Charles Terminal Services Business (275,111 ) — (275,111 ) Cash distributions to unitholders and distribution equivalent right payments (15,829 ) — (15,829 ) Net transfers from Valero Energy Corporation 10,935 11,803 22,738 Net cash provided by financing activities 79,711 11,803 91,514 Net decrease in cash and cash equivalents (208,869 ) — (208,869 ) Cash and cash equivalents at beginning of period 236,579 — 236,579 Cash and cash equivalents at end of period $ 27,710 $ — $ 27,710 Acquisition of the McKee Terminal Services Business Effective April 1, 2016 , we acquired a subsidiary from Valero that owns and operates a crude oil, intermediates, and refined petroleum products terminal (the McKee Terminal) that supports Valero’s McKee Refinery (in Sunray, Texas) for total consideration of $240.0 million , which consisted of (i) a cash distribution of $204.0 million and (ii) the issuance of 728,775 common units and 14,873 general partner units having an aggregate value of $36.0 million . We funded the cash distribution to Valero with $65.0 million of our cash on hand and $139.0 million of borrowings under our revolving credit facility. See Note 6 for further discussion of the borrowings under our revolving credit facility.

Related-Party Transactions

Related-Party Transactions	3 Months Ended
	Mar. 31, 2016
Related Party Transactions [Abstract]
RELATED-PARTY TRANSACTIONS	4. RELATED-PARTY TRANSACTIONS Summary of Transactions Receivables from related party consist of the following (in thousands): March 31, December 31, Trade receivables – related party $ 26,930 $ 26,103 Due to related party (6,008 ) (8,015 ) Receivables from related party $ 20,922 $ 18,088 The amounts shown in our balance sheets as “deferred revenue from related party” represent the unearned revenues from Valero associated with Valero’s quarterly deficiency payment, which is the result of Valero not meeting its minimum quarterly throughput commitments under our master transportation services agreement and master terminal services agreement (collectively, the commercial agreements) with Valero. All of our operating revenues are generated by providing services to Valero under our commercial agreements with Valero. The cost of services provided to us by Valero, including the cost of financing provided to us by Valero in connection with the Acquisitions as more fully described in Notes 3 and 6, are reflected in the supplemental information disclosure on our statements of income. Concentration Risk All of our operating revenues were derived from transactions with Valero and all of our receivables were due from Valero. Therefore, we are subject to the business risks associated with Valero’s business. Leases Certain schedules under our commercial agreements with Valero are considered operating leases under U.S. GAAP. These agreements contain minimum throughput requirements and escalation clauses to adjust transportation tariffs and terminaling and storage fees to reflect changes in price indices. Revenues from all lease agreements are recorded within “operating revenues – related party” in our statements of income. The amounts shown in our statements of income as “operating revenues – related party” included revenues from our current lease arrangements as follows (in thousands): Three Months Ended March 31, 2016 2015 Minimum rental revenues $ 48,249 $ 15,619 Contingent rental revenues 8,337 3,316 Total lease revenues $ 56,586 $ 18,935 As of March 31, 2016 , future minimum rentals to be received related to these noncancelable lease agreements were as follows (in thousands): Remainder of 2016 $ 145,823 2017 193,550 2018 193,550 2019 193,550 2020 194,078 Thereafter 821,539 Total minimum rental payments $ 1,742,090

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2016
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	5. PROPERTY AND EQUIPMENT Major classes of property and equipment consisted of the following (in thousands): March 31, 2016 Non-Leased Assets Assets Under Operating Leases (a) Total Pipelines and related assets $ 239,223 $ 46,964 $ 286,187 Terminals and related assets 110,760 583,901 694,661 Other 9,540 — 9,540 Land 4,672 — 4,672 Construction-in-progress 26,229 — 26,229 Property and equipment, at cost 390,424 630,865 1,021,289 Accumulated depreciation (121,613 ) (151,066 ) (272,679 ) Property and equipment, net $ 268,811 $ 479,799 $ 748,610 December 31, 2015 Non-Leased Assets Assets Under Operating Leases (a) Total Pipelines and related assets $ 228,586 $ 46,739 $ 275,325 Terminals and related assets 110,758 580,194 690,952 Other 9,352 — 9,352 Land 4,672 — 4,672 Construction-in-progress 30,580 — 30,580 Property and equipment, at cost 383,948 626,933 1,010,881 Accumulated depreciation (118,580 ) (145,019 ) (263,599 ) Property and equipment, net $ 265,368 $ 481,914 $ 747,282 (a) Represents assets owned by us for which we are considered the lessor in certain operating lease agreements with Valero under U.S. GAAP. We have certain pipeline assets under capital lease agreements totaling $14.9 million as of March 31, 2016 and December 31, 2015 . Accumulated amortization on assets under capital leases was $14.4 million and $14.1 million as of March 31, 2016 and December 31, 2015 , respectively.

Debt

Debt	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
DEBT	6. DEBT Revolving Credit Facility We have a $750.0 million senior unsecured revolving credit facility agreement (the Revolver) that matures in November 2020 . The Revolver also provides for the issuance of letters of credit of up to $100.0 million . Our obligations under the Revolver are jointly and severally guaranteed by our directly owned subsidiary, Valero Partners Operating Co. LLC. In connection with the acquisition of the Houston and St. Charles Terminals Services Business as described in Note 3 , we borrowed $200.0 million under the Revolver on March 2, 2015 . This borrowing bears interest at a variable rate, which was 1.75 percent as of March 31, 2016 . Accrued interest is payable in arrears on each Interest Payment Date (as defined in the Revolver) and on the maturity date. On July 1, 2015, we repaid $25.0 million on the Revolver. As of March 31, 2016 and December 31, 2015 , we had $175.0 million of borrowings outstanding and no letters of credit outstanding under the Revolver. Subordinated Credit Agreements During 2015, we entered into two subordinated credit agreements with Valero (the Loan Agreements) under which we borrowed $160.0 million and $395.0 million (collectively, the loans) to finance a portion of the acquisitions of the Houston and St. Charles Terminal Services Business and the Corpus Christi Terminal Services Business, respectively, as described in Note 3 . The loans mature on March 1 and October 1, 2020 , respectively, and may be prepaid at any time without penalty; we are not permitted to reborrow amounts. The loans bear interest at the LIBO Rate (as defined in the Loan Agreements) plus the applicable margin. Accrued interest is payable in arrears on each Interest Payment Date (as defined in the Loan Agreements) and on each maturity date. As of March 31, 2016 , the interest rate on each of the loans was 1.689 percent. In December 2015, we paid down $185.0 million under one of the loans. As of March 31, 2016 , we had $370.0 million outstanding under the Loan Agreements. Capitalized Interest Capitalized interest was approximately $32,000 and $5,000 for the three months ended March 31, 2016 , and 2015, respectively.

Operating Leases

Operating Leases	3 Months Ended
	Mar. 31, 2016
Leases, Operating [Abstract]
OPERATING LEASES	7. OPERATING LEASES We have long-term operating lease commitments primarily with Valero for land used in the terminaling and transportation of crude oil and refined petroleum products. Certain leases contain escalation clauses and renewal options that allow for the same rental payment over the new lease term or a revised rental payment based on fair rental value or negotiated value. Currently, one of our land leases with Valero does not contain a renewal option. We expect that, in the normal course of business, our leases will be renewed or replaced by other leases. As of March 31, 2016 , our future minimum rentals for leases having initial or remaining noncancelable lease terms in excess of one year were as follows (in thousands): Remainder of 2016 $ 6,169 2017 8,229 2018 8,186 2019 8,186 2020 8,186 Thereafter 35,588 Total minimum rental payments $ 74,544 Rental expense for all operating leases was $2.2 million and $0.8 million for the three months ended March 31, 2016 and 2015, respectively, as retrospectively adjusted for the acquisition of the Corpus Christi Terminal Services Business. In connection with the Acquisitions, we entered into additional land lease agreements, the expense of which is reflected subsequent to the effective dates of each acquisition.

Cash Distributions

Cash Distributions	3 Months Ended
	Mar. 31, 2016
Partners' Capital [Abstract]
CASH DISTRIBUTIONS	8. CASH DISTRIBUTIONS Our partnership agreement prescribes the amount and priority of cash distributions that the common and subordinated unitholders and general partner will receive. Our distributions are declared subsequent to quarter end. The table below summarizes information related to our quarterly cash distributions that have been declared since January 1, 2015: Quarterly Period Ended Total Quarterly Distribution (Per Unit) Total Cash Distribution (In Thousands) Declaration Date Record Date Distribution Date March 31, 2016 $ 0.3400 $ 25,608 April 21, 2016 May 2, 2016 May 10, 2016 December 31, 2015 0.3200 22,711 January 25, 2016 February 4, 2016 February 11, 2016 September 30, 2015 0.3075 20,164 October 15, 2015 November 2, 2015 November 10, 2015 June 30, 2015 0.2925 18,456 July 24, 2015 August 3, 2015 August 11, 2015 March 31, 2015 0.2775 17,266 April 21, 2015 May 1, 2015 May 12, 2015 December 31, 2014 0.2660 15,829 January 26, 2015 February 5, 2015 February 12, 2015 The following table reflects the allocation of total cash distributions to the general and limited partners and distribution equivalent right (DER) payments applicable to the period in which the distributions and DERs were earned (in thousands): Three Months Ended 2016 2015 General partner’s distributions: General partner’s distributions $ 512 $ 345 General partner’s incentive distribution 2,638 410 Total general partner’s distributions 3,150 755 Limited partners’ distributions: Common – public 7,310 4,787 Common – Valero 5,355 3,732 Subordinated – Valero 9,788 7,989 Total limited partners’ distributions 22,453 16,508 DERs 5 3 Total cash distributions, including DERs $ 25,608 $ 17,266

Net Income Per Limited Partner

Net Income Per Limited Partner Unit	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
NET INCOME PER LIMITED PARTNER UNIT	9. NET INCOME PER LIMITED PARTNER UNIT Distributions to our unitholders are determined in relation to actual distributions declared and are not based on the net income allocations used in the calculation of net income per limited partner unit. We calculate net income available to limited partners based on the distributions pertaining to each period’s net income. After considering the appropriate period’s distributions, the remaining undistributed earnings or excess distributions over earnings, if any, are allocated to the general partner, limited partners, and other participating securities in accordance with the contractual terms of our partnership agreement and as prescribed under the two-class method. Participating securities include IDRs and awards under our Valero Energy Partners LP 2013 Incentive Compensation Plan (2013 ICP) that receive DERs. However, the terms of our partnership agreement limit the general partner’s incentive distribution to the amount of available cash, which, as defined in our partnership agreement, is net of reserves deemed appropriate. As such, IDRs are not allocated undistributed earnings or distributions in excess of earnings in the calculation of net income per limited partner unit. Net losses of our Predecessor are allocated to the general partner. Subsequent to the effective dates of the Acquisitions, we calculate net income available to limited partners based on the methodology described above. Basic net income per limited partner unit is determined pursuant to the two-class method for master limited partnerships. The two-class method is an earnings allocation formula that is used to determine earnings to our general partner, common unitholders, and participating securities according to (i) distributions pertaining to each period’s net income and (ii) participation rights in undistributed earnings. Diluted net income per limited partner unit is also determined using the two-class method, unless the treasury stock method is more dilutive. For the three months ended March 31, 2016 and 2015, we used the two-class method to determine diluted net income per limited partner unit. We did not have any potentially dilutive instruments outstanding during three months ended March 31, 2016 and 2015. Net income per unit was computed as follows (in thousands, except per unit amounts): Three Months Ended March 31, 2016 Limited Partners General Common Subordinated Restricted Total Allocation of net income to determine net income available to limited partners: Distributions, excluding general partner’s IDRs $ 512 $ 12,665 $ 9,788 $ — $ 22,965 General partner’s IDRs 2,638 — — — 2,638 DERs — — — 5 5 Distributions and DERs declared 3,150 12,665 9,788 5 25,608 Undistributed earnings 354 9,692 7,640 4 17,690 Net income available to limited partners – basic and diluted $ 3,504 $ 22,357 $ 17,428 $ 9 $ 43,298 Net income per limited partner unit – basic and diluted: Weighted-average units outstanding 36,520 28,790 Net income per limited partner unit – basic and diluted $ 0.61 $ 0.61 Three Months Ended March 31, 2015 Limited Partners General Partner Common Units Subordinated Units Restricted Units Total Allocation of net income to determine net income available to limited partners: Distributions, excluding general partner’s IDRs $ 345 $ 8,519 $ 7,989 $ — $ 16,853 General partner’s IDRs 410 — — — 410 DERs — — — 3 3 Distributions and DERs declared 755 8,519 7,989 3 17,266 Undistributed earnings 97 2,404 2,353 1 4,855 Net income available to limited partners – basic and diluted $ 852 $ 10,923 $ 10,342 $ 4 $ 22,121 Net income per limited partner unit – basic and diluted: Weighted-average units outstanding 29,426 28,790 Net income per limited partner unit $ 0.37 $ 0.36

Unit Activity

Unit Activity	3 Months Ended
	Mar. 31, 2016
Partners' Capital Notes [Abstract]
UNIT ACTIVITY	10. UNIT ACTIVITY Activity in the number of units was as follows: Common General Partner Public Valero Subordinated Total Balance as of December 31, 2014 17,255,208 11,539,989 28,789,989 1,175,102 58,760,288 Unit-based compensation 4,443 — — — 4,443 Units issued in connection with the acquisition of the Houston and St. Charles Terminal Services Business (see Note 3) — 1,908,100 — 38,941 1,947,041 Balance as of March 31, 2015 17,259,651 13,448,089 28,789,989 1,214,043 60,711,772 Balance as of December 31, 2015 21,509,651 15,018,602 28,789,989 1,332,829 66,651,071 Unit-based compensation 5,958 — — — 5,958 Balance as of March 31, 2016 21,515,609 15,018,602 28,789,989 1,332,829 66,657,029

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	3 Months Ended
	Mar. 31, 2016
Supplemental Cash Flow Information [Abstract]
SUPPLEMENTAL CASH FLOW INFORMATION	11. SUPPLEMENTAL CASH FLOW INFORMATION In order to determine net cash provided by operating activities, net income is adjusted by, among other things, changes in current assets and current liabilities as follows (in thousands): Three Months Ended 2016 2015 Increase in current assets: Receivables from related party $ (2,834 ) $ (7,662 ) Prepaid expenses and other (199 ) (172 ) Increase (decrease) in current liabilities: Accounts payable 412 (275 ) Accrued liabilities 139 271 Accrued liabilities – related party 180 285 Taxes other than income taxes (6 ) (224 ) Deferred revenue from related party 322 22 Changes in current assets and current liabilities $ (1,986 ) $ (7,755 ) The above changes in current assets and current liabilities differ from changes between amounts reflected in the applicable balance sheets for the respective periods for the following reasons: • amounts accrued for capital expenditures are reflected in investing activities when such amounts are paid, and • amounts accrued for offering costs and debt issuance costs are reflected in financing activities when paid. We attributed $296.1 million of the total $571.2 million cash consideration paid for the acquisition of the Houston and St. Charles Terminal Services Business to the historical carrying value of this acquisition (an investing cash outflow). The remaining $275.1 million of cash consideration represents the excess purchase price paid over the carrying value of this acquisition (a financing cash outflow). There were no significant noncash investing activities for the three months ended March 31, 2016 . Noncash financing activities for the three months ended March 31, 2016 included a capital contribution of $7.4 million for projects that were funded by Valero related primarily to the Houston, St. Charles, and Corpus Christi terminals. Valero agreed to fund these projects in connection with the Acquisitions. There were no significant noncash investing activities for the three months ended March 31, 2015 . Noncash financing activities for the three months ended March 31, 2015 included: • a capital contribution of $4.8 million for projects that were funded by Valero related to the Houston and St. Charles terminals. Valero agreed to fund these projects as part of the acquisition of the Houston and St. Charles Terminals Services Business, and • the issuance of 1,908,100 common units and 38,941 general partner units having an aggregate value of $100.0 million in connection with the acquisition of the Houston and St. Charles Terminals Service Business described in Note 3 . The following is a reconciliation of the amounts presented as net transfers from Valero on our statement of partners’ capital and statement of cash flows for the three months ended March 31, 2015 retrospectively adjusted for the acquisition of the Corpus Christi Terminal Services Business (in thousands): Net transfers from Valero per statement of partners’ capital $ 21,268 Less: Noncash transfers to Valero (1,470 ) Net transfers from Valero per statement of cash flows $ 22,738 Noncash transfers to Valero primarily represent the change in amounts accrued by our Predecessor for capital expenditures as we do not reflect capital expenditures in our statements of cash flows until such amounts are paid. Cash flows related to interest and income taxes paid were as follows (in thousands): Three Months Ended 2016 2015 (a) Interest paid $ 2,502 $ 172 Income taxes paid — — (a) Financial information has been retrospectively adjusted for the acquisition of the Corpus Christi Terminal Services Business.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	12. FAIR VALUE OF FINANCIAL INSTRUMENTS The fair value of cash and cash equivalents approximates the carrying value due to the low level of credit risk of these assets combined with their market interest rates. The fair value measurement for cash and cash equivalents is categorized as Level 1 in the fair value hierarchy. Fair values determined by Level 1 inputs utilize unadjusted quoted prices in active markets for identical assets. The fair values of our debt and notes payable to related party approximate their carrying values as our borrowings bear interest based upon short-term floating market interest rates. The fair value measurement for these liabilities is categorized as Level 2 in the fair value hierarchy. Fair values determined by Level 2 utilize inputs that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation Our consolidated financial statements include the accounts of the Partnership as well as our Predecessor (defined below). All intercompany accounts and transactions have been eliminated. The Acquisitions were accounted for as transfers of businesses between entities under the common control of Valero. As entities under the common control of Valero, we recorded the Acquisitions on our balance sheet at Valero’s carrying value rather than fair value. Transfers between entities under common control are accounted for as though the transfer occurred as of the beginning of the period of transfer, and prior period financial statements and financial information are retrospectively adjusted to furnish comparative information. Accordingly, the Partnership’s financial statements and related notes have been retrospectively adjusted to include the historical results of the Acquisitions for all periods presented prior to the effective dates of each acquisition. We refer to the historical results of the Acquisitions prior to their respective acquisition dates as those of our “Predecessor.” The combined financial statements of our Predecessor were derived from the consolidated financial statements and accounting records of Valero and reflect the combined historical financial position, results of operations, and cash flows of our Predecessor as if the Acquisitions had been combined for periods prior to the effective dates of each acquisition. There were no transactions between the operations of our Predecessor; therefore, there were no intercompany transactions or accounts to be eliminated in connection with the combination of those operations. In addition, our Predecessor’s statements of income include direct charges for the management and operation of our assets and certain expenses allocated by Valero for general corporate services, such as treasury, accounting, and legal services. These expenses were charged, or allocated, to our Predecessor based on the nature of the expenses. Prior to the Acquisitions, our Predecessor transferred cash to Valero daily and Valero funded our Predecessor’s operating and investing activities as needed. Therefore, transfers of cash to and from Valero’s cash management system are reflected as a component of net investment and are reflected as a financing activity in our statements of cash flows. In addition, interest expense was not included on the net cash transfers from Valero. The financial information presented for the periods after the effective dates of the Acquisitions represents the consolidated financial position, results of operations, and cash flows of the Partnership. These unaudited financial statements have been prepared in accordance with U.S. 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 U.S. GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All such adjustments are of a normal recurring nature unless disclosed otherwise. Financial information for the three months ended March 31, 2016 and 2015 included in these Condensed Notes to Consolidated Financial Statements is derived from our unaudited financial statements. Operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. The balance sheet as of December 31, 2015 has been derived from our audited financial statements as of that date. For further information, refer to our financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2015 .
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. On an ongoing basis, we review our estimates based on currently available information. Changes in facts and circumstances may result in revised estimates.
Debt Issuance Costs	In April 2015, the provisions of Accounting Standards Codification (ASC) Subtopic 835-30, “Interest–Imputation of Interest,” were amended to simplify the presentation of debt issuance costs. The guidance requires that debt issuance costs related to a note be reported in the balance sheet as a direct deduction from the face amount of that note, consistent with debt discounts, and that amortization of debt issuance costs be reported as interest expense. In August 2015, these provisions were further amended with guidance from the Securities and Exchange Commission staff that they would not object to an entity deferring and presenting debt issuance costs related to a line-of-credit arrangement as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. These provisions were effective for annual reporting periods beginning after December 15, 2015, and interim periods within those annual periods. The adoption of this guidance effective January 1, 2016 did not affect our financial position or results of operations as our debt issuance costs are associated with our revolving credit facility and therefore were not required to be reclassified.
Net Income per Limited Partner Unit	Also in April 2015, the provisions of ASC Topic 260, “Earnings Per Share,” were amended to provide guidance on how master limited partnerships apply the two-class method of calculating earnings per unit for historical periods when they receive net assets in a dropdown transaction that is accounted for as a transaction between entities under common control as required under Subtopic 805-50, “Business Combinations–Related Issues.” The amendments specify that for purposes of calculating earnings per unit under the two-class method for periods before the date of a dropdown transaction, earnings or losses of a transferred business should be allocated entirely to the general partner. Qualitative disclosures are also required to describe how the rights to earnings or losses differ before and after the dropdown transaction for purposes of computing earnings per unit under the two-class method. These provisions were effective for annual reporting periods beginning after December 15, 2015, and interim periods within those annual periods. We have historically calculated our net income per unit after a dropdown transaction as prescribed by these provisions; therefore, the adoption of this guidance effective January 1, 2016 did not affect our financial position or results of operations, but resulted in additional disclosures as shown in Note 9.
Income Taxes	In November 2015, the provisions of ASC Topic 740, “Income Taxes,” were amended to simplify the presentation of deferred income taxes. The amendments require that deferred tax liabilities and assets be classified as noncurrent in a classified balance sheet. The amendments are effective for financial statements for annual periods beginning after December 15, 2016, and interim periods within those annual periods, with early adoption permitted as of the beginning of any interim or annual period. Effective January 1, 2016, we adopted this guidance on a retrospective basis, but such adoption did not affect our financial position as we had no current deferred tax amounts to reclassify.
Accounting Pronouncements Not Yet Adopted	In May 2014, the ASC was amended and a new accounting standard, ASC Topic 606, “Revenue from Contracts with Customers,” was issued to clarify the principles for recognizing revenue. The standard is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual periods. We are currently evaluating the effect that adopting this standard will have on our financial statements and related disclosures. In January 2016, the provisions of ASC Subtopic 825-10, “Financial Instruments–Overall,” were amended to enhance the reporting model for financial instruments regarding certain aspects of recognition, measurement, presentation, and disclosure. These provisions are effective for annual reporting periods beginning after December 15, 2017, and interim periods within those annual periods. We are currently evaluating the effect that adopting this standard will have on our financial statements and related disclosures. In February 2016, the ASC was amended and a new accounting standard, ASC Topic 842, “Leases,” was issued to increase the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The new standard is effective for public companies for annual reporting periods beginning after December 15, 2018, and interim reporting periods within those annual periods, with early adoption permitted. We are currently evaluating the effect that adopting this standard will have on our financial statements and related disclosures. In March 2016, the provisions of ASC Topic 718, “Compensation–Stock Compensation,” were amended to simplify the accounting and reporting for employee share-based payments. These amendments involve several aspects of the accounting for share-based payment transactions, including accounting for income taxes as it pertains to the timing of when excess tax benefits are recognized and to the recognition of excess tax benefits and tax deficiencies in the statements of income, forfeitures, minimum statutory tax withholding requirements, as well as classification of excess tax benefits and employee taxes paid on the statement of cash flows. These provisions are effective for public companies for annual reporting periods beginning after December 15, 2016, and interim periods within those annual periods, with early adoption permitted. An entity that elects early adoption must adopt all of the amendments in the same period. The amendments provide specific transition and disclosure guidance for each provision. We are currently evaluating the effect that adopting this standard will have on our financial statements and related disclosures.

Acquisitions (Tables)

Acquisitions (Tables)	3 Months Ended
	Mar. 31, 2016
Business Combinations [Abstract]
Statements of income and statements of cash flows, including the operations of the Corpus Christi Terminal Services Business	The following table presents our previously reported statement of income for the three months ended March 31, 2015 retrospectively adjusted for the acquisition of the Corpus Christi Terminal Services Business (in thousands). The results of operations of the Houston and St. Charles Terminal Services Business are included in our previously reported statement of income for the three months ended March 31, 2015 . Three Months Ended March 31, 2015 Valero Energy Partners LP (Previously Reported) Corpus Christi Terminal Services Business Valero Energy Partners LP (Currently Reported) Operating revenues – related party $ 41,886 $ — $ 41,886 Costs and expenses: Operating expenses 17,864 4,760 22,624 General and administrative expenses 3,565 87 3,652 Depreciation expense 7,488 822 8,310 Total costs and expenses 28,917 5,669 34,586 Operating income (loss) 12,969 (5,669 ) 7,300 Other income, net 111 — 111 Interest and debt expense, net of capitalized interest (601 ) — (601 ) Income (loss) before income taxes 12,479 (5,669 ) 6,810 Income tax benefit (126 ) — (126 ) Net income (loss) 12,605 (5,669 ) 6,936 Less: Net loss attributable to Predecessor (9,516 ) (5,669 ) (15,185 ) Net income attributable to partners $ 22,121 $ — $ 22,121 The following table presents our previously reported statement of cash flows for the three months ended March 31, 2015 retrospectively adjusted for the acquisition of the Corpus Christi Terminal Services Business (in thousands). The cash flows of the Houston and St. Charles Terminal Services Business are included in our previously reported statement of cash flows for the three months ended March 31, 2015 . Three Months Ended March 31, 2015 Valero Energy Partners LP (Previously Reported) Corpus Christi Terminal Services Business Valero Energy Partners LP (Currently Reported) Cash flows from operating activities: Net income (loss) $ 12,605 $ (5,669 ) $ 6,936 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation expense 7,488 822 8,310 Deferred income tax benefit (249 ) — (249 ) Changes in current assets and current liabilities (7,755 ) — (7,755 ) Changes in deferred charges and credits and other operating activities, net 418 — 418 Net cash provided by (used in) operating activities 12,507 (4,847 ) 7,660 Cash flows from investing activities: Capital expenditures (4,978 ) (6,956 ) (11,934 ) Acquisition of the Houston and St. Charles Terminal Services Business from Valero Energy Corporation (296,109 ) — (296,109 ) Net cash used in investing activities (301,087 ) (6,956 ) (308,043 ) Cash flows from financing activities: Proceeds from debt borrowings 200,000 — 200,000 Proceeds from note payable to related party 160,000 — 160,000 Payments of capital lease obligations (284 ) — (284 ) Excess purchase price paid to Valero Energy Corporation over the carrying value of the Houston and St. Charles Terminal Services Business (275,111 ) — (275,111 ) Cash distributions to unitholders and distribution equivalent right payments (15,829 ) — (15,829 ) Net transfers from Valero Energy Corporation 10,935 11,803 22,738 Net cash provided by financing activities 79,711 11,803 91,514 Net decrease in cash and cash equivalents (208,869 ) — (208,869 ) Cash and cash equivalents at beginning of period 236,579 — 236,579 Cash and cash equivalents at end of period $ 27,710 $ — $ 27,710

Related-Party Transactions (Tab

Related-Party Transactions (Tables)	3 Months Ended
	Mar. 31, 2016
Related Party Transactions [Abstract]
Summary of related-party transactions	Receivables from related party consist of the following (in thousands): March 31, December 31, Trade receivables – related party $ 26,930 $ 26,103 Due to related party (6,008 ) (8,015 ) Receivables from related party $ 20,922 $ 18,088
Lessor disclosure of operating leases	As of March 31, 2016 , future minimum rentals to be received related to these noncancelable lease agreements were as follows (in thousands): Remainder of 2016 $ 145,823 2017 193,550 2018 193,550 2019 193,550 2020 194,078 Thereafter 821,539 Total minimum rental payments $ 1,742,090 The amounts shown in our statements of income as “operating revenues – related party” included revenues from our current lease arrangements as follows (in thousands): Three Months Ended March 31, 2016 2015 Minimum rental revenues $ 48,249 $ 15,619 Contingent rental revenues 8,337 3,316 Total lease revenues $ 56,586 $ 18,935

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2016
Property, Plant and Equipment [Abstract]
Major classes of property and equipment	Major classes of property and equipment consisted of the following (in thousands): March 31, 2016 Non-Leased Assets Assets Under Operating Leases (a) Total Pipelines and related assets $ 239,223 $ 46,964 $ 286,187 Terminals and related assets 110,760 583,901 694,661 Other 9,540 — 9,540 Land 4,672 — 4,672 Construction-in-progress 26,229 — 26,229 Property and equipment, at cost 390,424 630,865 1,021,289 Accumulated depreciation (121,613 ) (151,066 ) (272,679 ) Property and equipment, net $ 268,811 $ 479,799 $ 748,610 December 31, 2015 Non-Leased Assets Assets Under Operating Leases (a) Total Pipelines and related assets $ 228,586 $ 46,739 $ 275,325 Terminals and related assets 110,758 580,194 690,952 Other 9,352 — 9,352 Land 4,672 — 4,672 Construction-in-progress 30,580 — 30,580 Property and equipment, at cost 383,948 626,933 1,010,881 Accumulated depreciation (118,580 ) (145,019 ) (263,599 ) Property and equipment, net $ 265,368 $ 481,914 $ 747,282 (a) Represents assets owned by us for which we are considered the lessor in certain operating lease agreements with Valero under U.S. GAAP.

Operating Leases (Tables)

Operating Leases (Tables)	3 Months Ended
	Mar. 31, 2016
Leases, Operating [Abstract]
Future minimum rentals for leases having initial or remaining noncancelable lease terms in excess of one year	As of March 31, 2016 , our future minimum rentals for leases having initial or remaining noncancelable lease terms in excess of one year were as follows (in thousands): Remainder of 2016 $ 6,169 2017 8,229 2018 8,186 2019 8,186 2020 8,186 Thereafter 35,588 Total minimum rental payments $ 74,544

Cash Distributions (Tables)

Cash Distributions (Tables)	3 Months Ended
	Mar. 31, 2016
Partners' Capital [Abstract]
Distributions made to unitholders	The table below summarizes information related to our quarterly cash distributions that have been declared since January 1, 2015: Quarterly Period Ended Total Quarterly Distribution (Per Unit) Total Cash Distribution (In Thousands) Declaration Date Record Date Distribution Date March 31, 2016 $ 0.3400 $ 25,608 April 21, 2016 May 2, 2016 May 10, 2016 December 31, 2015 0.3200 22,711 January 25, 2016 February 4, 2016 February 11, 2016 September 30, 2015 0.3075 20,164 October 15, 2015 November 2, 2015 November 10, 2015 June 30, 2015 0.2925 18,456 July 24, 2015 August 3, 2015 August 11, 2015 March 31, 2015 0.2775 17,266 April 21, 2015 May 1, 2015 May 12, 2015 December 31, 2014 0.2660 15,829 January 26, 2015 February 5, 2015 February 12, 2015 The following table reflects the allocation of total cash distributions to the general and limited partners and distribution equivalent right (DER) payments applicable to the period in which the distributions and DERs were earned (in thousands): Three Months Ended 2016 2015 General partner’s distributions: General partner’s distributions $ 512 $ 345 General partner’s incentive distribution 2,638 410 Total general partner’s distributions 3,150 755 Limited partners’ distributions: Common – public 7,310 4,787 Common – Valero 5,355 3,732 Subordinated – Valero 9,788 7,989 Total limited partners’ distributions 22,453 16,508 DERs 5 3 Total cash distributions, including DERs $ 25,608 $ 17,266

Net Income Per Limited Partne26

Net Income Per Limited Partner Unit (Tables)	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Computation of net income per unit	Net income per unit was computed as follows (in thousands, except per unit amounts): Three Months Ended March 31, 2016 Limited Partners General Common Subordinated Restricted Total Allocation of net income to determine net income available to limited partners: Distributions, excluding general partner’s IDRs $ 512 $ 12,665 $ 9,788 $ — $ 22,965 General partner’s IDRs 2,638 — — — 2,638 DERs — — — 5 5 Distributions and DERs declared 3,150 12,665 9,788 5 25,608 Undistributed earnings 354 9,692 7,640 4 17,690 Net income available to limited partners – basic and diluted $ 3,504 $ 22,357 $ 17,428 $ 9 $ 43,298 Net income per limited partner unit – basic and diluted: Weighted-average units outstanding 36,520 28,790 Net income per limited partner unit – basic and diluted $ 0.61 $ 0.61 Three Months Ended March 31, 2015 Limited Partners General Partner Common Units Subordinated Units Restricted Units Total Allocation of net income to determine net income available to limited partners: Distributions, excluding general partner’s IDRs $ 345 $ 8,519 $ 7,989 $ — $ 16,853 General partner’s IDRs 410 — — — 410 DERs — — — 3 3 Distributions and DERs declared 755 8,519 7,989 3 17,266 Undistributed earnings 97 2,404 2,353 1 4,855 Net income available to limited partners – basic and diluted $ 852 $ 10,923 $ 10,342 $ 4 $ 22,121 Net income per limited partner unit – basic and diluted: Weighted-average units outstanding 29,426 28,790 Net income per limited partner unit $ 0.37 $ 0.36

Unit Activity (Tables)

Unit Activity (Tables)	3 Months Ended
	Mar. 31, 2016
Partners' Capital Notes [Abstract]
Unit rollforward	Activity in the number of units was as follows: Common General Partner Public Valero Subordinated Total Balance as of December 31, 2014 17,255,208 11,539,989 28,789,989 1,175,102 58,760,288 Unit-based compensation 4,443 — — — 4,443 Units issued in connection with the acquisition of the Houston and St. Charles Terminal Services Business (see Note 3) — 1,908,100 — 38,941 1,947,041 Balance as of March 31, 2015 17,259,651 13,448,089 28,789,989 1,214,043 60,711,772 Balance as of December 31, 2015 21,509,651 15,018,602 28,789,989 1,332,829 66,651,071 Unit-based compensation 5,958 — — — 5,958 Balance as of March 31, 2016 21,515,609 15,018,602 28,789,989 1,332,829 66,657,029

Supplemental Cash Flow Inform28

Supplemental Cash Flow Information (Tables)	3 Months Ended
	Mar. 31, 2016
Supplemental Cash Flow Information [Abstract]
Supplemental cash flow disclosures	In order to determine net cash provided by operating activities, net income is adjusted by, among other things, changes in current assets and current liabilities as follows (in thousands): Three Months Ended 2016 2015 Increase in current assets: Receivables from related party $ (2,834 ) $ (7,662 ) Prepaid expenses and other (199 ) (172 ) Increase (decrease) in current liabilities: Accounts payable 412 (275 ) Accrued liabilities 139 271 Accrued liabilities – related party 180 285 Taxes other than income taxes (6 ) (224 ) Deferred revenue from related party 322 22 Changes in current assets and current liabilities $ (1,986 ) $ (7,755 ) Cash flows related to interest and income taxes paid were as follows (in thousands): Three Months Ended 2016 2015 (a) Interest paid $ 2,502 $ 172 Income taxes paid — — (a) Financial information has been retrospectively adjusted for the acquisition of the Corpus Christi Terminal Services Business.
Reconciliation of net transfers from Valero	The following is a reconciliation of the amounts presented as net transfers from Valero on our statement of partners’ capital and statement of cash flows for the three months ended March 31, 2015 retrospectively adjusted for the acquisition of the Corpus Christi Terminal Services Business (in thousands): Net transfers from Valero per statement of partners’ capital $ 21,268 Less: Noncash transfers to Valero (1,470 ) Net transfers from Valero per statement of cash flows $ 22,738

Business and Basis of Present29

Business and Basis of Presentation (Details) - Majority Shareholder [Member] - refineries	Apr. 01, 2016	Mar. 31, 2016
Business and Basis of Presentation (Textual)
Number of Valero owned refineries		9
Houston and St. Charles Terminal Services Business [Member]
Business and Basis of Presentation (Textual)
Effective date of the acquisitions		Mar. 1, 2015
Corpus Christi Terminal Services Business [Member]
Business and Basis of Presentation (Textual)
Effective date of the acquisitions		Oct. 1, 2015
McKee Terminal Services Business [Member] | Subsequent Event [Member]
Business and Basis of Presentation (Textual)
Effective date of the acquisitions	Apr. 1, 2016

Acquisitions (Details)

Acquisitions (Details) $ in Thousands		Apr. 01, 2016USD ($)subsidiariesshares	Oct. 01, 2015USD ($)shares	Mar. 01, 2015USD ($)subsidiariesshares	Mar. 31, 2016USD ($)	Mar. 31, 2015USD ($)shares		Dec. 31, 2015USD ($)
Consolidated Statements of Income
Operating revenues – related party					$ 78,767	$ 41,886	[1]
Costs and expenses:
Operating expenses (b)	[2]				19,096	22,624	[1]
General and administrative expenses (c)	[3]				4,161	3,652	[1]
Depreciation expense					9,388	8,310	[1]
Total costs and expenses					32,645	34,586	[1]
Operating income					46,122	7,300	[1]
Other income, net					77	111	[1]
Interest and debt expense, net of capitalized interest (d)	[4]				(2,659)	(601)	[1]
Income before income taxes					43,540	6,810	[1]
Income tax expense (benefit)					242	(126)	[1]
Net income					43,298	6,936	[1]
Less: Net loss attributable to Predecessor					0	(15,185)	[1]
Net income attributable to partners					43,298	22,121
Cash flows from operating activities:
Net income (loss)					43,298	6,936	[1]
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation expense					9,388	8,310	[1]
Deferred income tax expense (benefit)					95	(249)	[1]
Changes in current assets and current liabilities					(1,986)	(7,755)	[1]
Changes in deferred charges and credits and other operating activities, net					111	418	[1]
Net cash provided by operating activities					50,906	7,660	[1]
Cash flows from investing activities:
Capital expenditures					(6,267)	(11,934)	[1]
Acquisition from Valero Energy Corporation					0	(296,109)	[1]
Net cash used in investing activities					(6,267)	(308,043)	[1]
Cash flows from financing activities:
Proceeds from debt borrowings					0	200,000	[1]
Proceeds from note payable to related party					0	160,000	[1]
Payments of capital lease obligations					(326)	(284)	[1]
Excess purchase price paid to Valero Energy Corporation over the carrying value of acquired assets					0	(275,111)	[1]
Cash distributions to unitholders and distribution equivalent right payments					(22,711)	(15,829)	[1]
Net transfers from Valero Energy Corporation					0	22,738	[1]
Net cash provided by (used in) financing activities					(23,144)	91,514	[1]
Net increase (decrease) in cash and cash equivalents					21,495	(208,869)	[1]
Cash and cash equivalents at beginning of period		$ 102,278			80,783	236,579	[1]	$ 236,579	[1]
Cash and cash equivalents at end of period					102,278	$ 27,710	[1]	80,783
Acquisitions (Textual)
Units issued in connection with the acquisitions from Valero | shares						1,947,041
Valero Energy Partners LP (Previously Reported) [Member]
Consolidated Statements of Income
Operating revenues – related party						$ 41,886
Costs and expenses:
Operating expenses (b)						17,864
General and administrative expenses (c)						3,565
Depreciation expense						7,488
Total costs and expenses						28,917
Operating income						12,969
Other income, net						111
Interest and debt expense, net of capitalized interest (d)						(601)
Income before income taxes						12,479
Income tax expense (benefit)						(126)
Net income						12,605
Less: Net loss attributable to Predecessor						(9,516)
Net income attributable to partners						22,121
Cash flows from operating activities:
Net income (loss)						12,605
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation expense						7,488
Deferred income tax expense (benefit)						(249)
Changes in current assets and current liabilities						(7,755)
Changes in deferred charges and credits and other operating activities, net						418
Net cash provided by operating activities						12,507
Cash flows from investing activities:
Capital expenditures						(4,978)
Acquisition from Valero Energy Corporation						(296,109)
Net cash used in investing activities						(301,087)
Cash flows from financing activities:
Proceeds from debt borrowings						200,000
Proceeds from note payable to related party						160,000
Payments of capital lease obligations						(284)
Excess purchase price paid to Valero Energy Corporation over the carrying value of acquired assets						(275,111)
Cash distributions to unitholders and distribution equivalent right payments						(15,829)
Net transfers from Valero Energy Corporation						10,935
Net cash provided by (used in) financing activities						79,711
Net increase (decrease) in cash and cash equivalents						(208,869)
Cash and cash equivalents at beginning of period						236,579		236,579
Cash and cash equivalents at end of period						27,710
Common Unitholder Valero [Member]
Costs and expenses:
Less: Net loss attributable to Predecessor						0
Net income attributable to partners					9,151	$ 4,442
Acquisitions (Textual)
Units issued in connection with the acquisitions from Valero | shares						1,908,100
General Partner Valero [Member]
Costs and expenses:
Less: Net loss attributable to Predecessor						$ 0
Net income attributable to partners					$ 3,504	$ 852
Acquisitions (Textual)
Units issued in connection with the acquisitions from Valero | shares						38,941
Corpus Christi Terminal Services Business [Member] | Adjustments for Acquisitions of Businesses Under Common Control [Member]
Consolidated Statements of Income
Operating revenues – related party						$ 0
Costs and expenses:
Operating expenses (b)						4,760
General and administrative expenses (c)						87
Depreciation expense						822
Total costs and expenses						5,669
Operating income						(5,669)
Other income, net						0
Interest and debt expense, net of capitalized interest (d)						0
Income before income taxes						(5,669)
Income tax expense (benefit)						0
Net income						(5,669)
Less: Net loss attributable to Predecessor						(5,669)
Net income attributable to partners						0
Cash flows from operating activities:
Net income (loss)						(5,669)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation expense						822
Deferred income tax expense (benefit)						0
Changes in current assets and current liabilities						0
Changes in deferred charges and credits and other operating activities, net						0
Net cash provided by operating activities						(4,847)
Cash flows from investing activities:
Capital expenditures						(6,956)
Acquisition from Valero Energy Corporation						0
Net cash used in investing activities						(6,956)
Cash flows from financing activities:
Proceeds from debt borrowings						0
Proceeds from note payable to related party						0
Payments of capital lease obligations						0
Excess purchase price paid to Valero Energy Corporation over the carrying value of acquired assets						0
Cash distributions to unitholders and distribution equivalent right payments						0
Net transfers from Valero Energy Corporation						11,803
Net cash provided by (used in) financing activities						11,803
Net increase (decrease) in cash and cash equivalents						0
Cash and cash equivalents at beginning of period						0		$ 0
Cash and cash equivalents at end of period						0
Majority Shareholder [Member]
Cash flows from financing activities:
Net transfers from Valero Energy Corporation						22,738
Majority Shareholder [Member] | Houston and St. Charles Terminal Services Business [Member]
Cash flows from investing activities:
Acquisition from Valero Energy Corporation						(296,100)
Cash flows from financing activities:
Proceeds from debt borrowings				$ 200,000
Proceeds from note payable to related party				$ 160,000
Excess purchase price paid to Valero Energy Corporation over the carrying value of acquired assets						(275,100)
Acquisitions (Textual)
Effective date of acquisitions from Valero					Mar. 1, 2015
Number of subsidiaries acquired from Valero | subsidiaries				2
Value of consideration transferred for acquisitions from Valero				$ 671,200
Cash consideration transferred to acquire businesses						571,200
Consideration transferred for the acquisitions from Valero, units issued				100,000		$ 100,000
Payments to acquire businesses, cash on hand				$ 211,200
Majority Shareholder [Member] | Houston and St. Charles Terminal Services Business [Member] | Common Unitholder Valero [Member]
Acquisitions (Textual)
Units issued in connection with the acquisitions from Valero | shares				1,908,100		1,908,100
Majority Shareholder [Member] | Houston and St. Charles Terminal Services Business [Member] | General Partner Valero [Member]
Acquisitions (Textual)
Units issued in connection with the acquisitions from Valero | shares				38,941		38,941
Majority Shareholder [Member] | Corpus Christi Terminal Services Business [Member]
Cash flows from financing activities:
Proceeds from note payable to related party			$ 395,000
Acquisitions (Textual)
Effective date of acquisitions from Valero					Oct. 1, 2015
Value of consideration transferred for acquisitions from Valero			465,000
Cash consideration transferred to acquire businesses			395,000
Consideration transferred for the acquisitions from Valero, units issued			$ 70,000
Majority Shareholder [Member] | Corpus Christi Terminal Services Business [Member] | Common Unitholder Valero [Member]
Acquisitions (Textual)
Units issued in connection with the acquisitions from Valero | shares			1,570,513
Majority Shareholder [Member] | Corpus Christi Terminal Services Business [Member] | General Partner Valero [Member]
Acquisitions (Textual)
Units issued in connection with the acquisitions from Valero | shares			32,051
Majority Shareholder [Member] | McKee Terminal Services Business [Member] | Subsequent Event [Member]
Cash flows from financing activities:
Proceeds from debt borrowings		$ 139,000
Acquisitions (Textual)
Effective date of acquisitions from Valero		Apr. 1, 2016
Number of subsidiaries acquired from Valero | subsidiaries		1
Value of consideration transferred for acquisitions from Valero		$ 240,000
Cash consideration transferred to acquire businesses		204,000
Consideration transferred for the acquisitions from Valero, units issued		36,000
Payments to acquire businesses, cash on hand		$ 65,000
Majority Shareholder [Member] | McKee Terminal Services Business [Member] | Common Unitholder Valero [Member] | Subsequent Event [Member]
Acquisitions (Textual)
Units issued in connection with the acquisitions from Valero | shares		728,775
Majority Shareholder [Member] | McKee Terminal Services Business [Member] | General Partner Valero [Member] | Subsequent Event [Member]
Acquisitions (Textual)
Units issued in connection with the acquisitions from Valero | shares		14,873
[1]	Financial information has been retrospectively adjusted for the acquisition of the Corpus Christi Terminal Services Business. See Notes 1 and 3.
[2]	Includes operating expenses – related party of $9,910 thousand and $8,906 thousand for the three months ended March 31, 2016 and 2015, respectively.
[3]	Includes general and administrative expenses – related party of $2,858 thousand and $2,599 thousand for the three months ended March 31, 2016 and 2015, respectively.
[4]	Includes interest and debt expense – related party of $1,566 thousand and $190 thousand for the three months ended March 31, 2016 and 2015, respectively.

Related-Party Transactions (Det

Related-Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Receivables from Related Party
Receivables from related party	$ 20,922		$ 18,088
Majority Shareholder [Member]
Receivables from Related Party
Trade receivables – related party	26,930		26,103
Due to related party	(6,008)		(8,015)
Receivables from related party	20,922		$ 18,088
Operating Leases, Lease Revenue
Minimum rental revenues	48,249	$ 15,619
Contingent rental revenues	8,337	3,316
Total lease revenues	56,586	$ 18,935
Future Minimum Rentals to be Received on Noncancelable Lease Agreements
Remainder of 2016	145,823
2,017	193,550
2,018	193,550
2,019	193,550
2,020	194,078
Thereafter	821,539
Total minimum rental payments	$ 1,742,090

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands		Mar. 31, 2016	Dec. 31, 2015
Non-Leased Assets
Property and equipment excluding assets subject to operating lease, at cost		$ 390,424	$ 383,948
Accumulated depreciation, property and equipment excluding assets subject to operating lease		(121,613)	(118,580)
Property and equipment excluding assets subject to operating lease, net		268,811	265,368
Assets Under Operating Leases
Assets under operating leases, at cost	[1]	630,865	626,933
Accumulated depreciation, assets under operating leases	[1]	(151,066)	(145,019)
Assets under operating leases, net	[1]	479,799	481,914
Property and Equipment, Total
Property and equipment, at cost		1,021,289	1,010,881
Accumulated depreciation		(272,679)	(263,599)
Property and equipment, net		748,610	747,282
Capital Leases (Textual)
Assets under capital lease agreements		14,900	14,900
Accumulated amortization on assets under capital lease agreements		14,400	14,100
Pipelines and Related Assets [Member]
Non-Leased Assets
Property and equipment excluding assets subject to operating lease, at cost		239,223	228,586
Assets Under Operating Leases
Assets under operating leases, at cost	[1]	46,964	46,739
Property and Equipment, Total
Property and equipment, at cost		286,187	275,325
Terminals and Related Assets [Member]
Non-Leased Assets
Property and equipment excluding assets subject to operating lease, at cost		110,760	110,758
Assets Under Operating Leases
Assets under operating leases, at cost	[1]	583,901	580,194
Property and Equipment, Total
Property and equipment, at cost		694,661	690,952
Other [Member]
Non-Leased Assets
Property and equipment excluding assets subject to operating lease, at cost		9,540	9,352
Assets Under Operating Leases
Assets under operating leases, at cost	[1]	0	0
Property and Equipment, Total
Property and equipment, at cost		9,540	9,352
Land [Member]
Non-Leased Assets
Property and equipment excluding assets subject to operating lease, at cost		4,672	4,672
Assets Under Operating Leases
Assets under operating leases, at cost	[1]	0	0
Property and Equipment, Total
Property and equipment, at cost		4,672	4,672
Construction-in-Progress [Member]
Non-Leased Assets
Property and equipment excluding assets subject to operating lease, at cost		26,229	30,580
Assets Under Operating Leases
Assets under operating leases, at cost	[1]	0	0
Property and Equipment, Total
Property and equipment, at cost		$ 26,229	$ 30,580
[1]	Represents assets owned by us for which we are considered the lessor in certain operating lease agreements with Valero under U.S. GAAP.

Debt, Revolving Credit Facility

Debt, Revolving Credit Facility (Details) - USD ($)	Jul. 01, 2015	Mar. 02, 2015	Mar. 31, 2016	Mar. 31, 2015	[1]	Dec. 31, 2015
Revolving Credit Facility (Textual)
Borrowings under the Revolver			$ 0	$ 200,000,000
Line of Credit [Member] | Revolving Credit Facility [Member]
Revolving Credit Facility (Textual)
Line of credit facility, maximum borrowing capacity			$ 750,000,000
Line of credit facility, expiration date			Nov. 20, 2020
Borrowings under the Revolver		$ 200,000,000
Line of credit facility, interest rate, at period end			1.75%
Repayment on the Revolver	$ 25,000,000
Line of credit facility, amount outstanding			$ 175,000,000			$ 175,000,000
Line of Credit [Member] | Letter of Credit [Member]
Revolving Credit Facility (Textual)
Line of credit facility, maximum borrowing capacity			100,000,000
Line of credit facility, amount outstanding			$ 0			$ 0
[1]	Financial information has been retrospectively adjusted for the acquisition of the Corpus Christi Terminal Services Business. See Notes 1 and 3.

Debt, Subordinated Credit Agree

Debt, Subordinated Credit Agreements (Details) $ in Thousands	Oct. 01, 2015USD ($)	Mar. 01, 2015USD ($)	Dec. 31, 2015USD ($)loan_agreements	Mar. 31, 2016USD ($)	Mar. 31, 2015USD ($)	[1]	Dec. 31, 2015USD ($)loan_agreements
Subordinated Credit Agreement (Textual)
Number of subordinated credit agreements entered | loan_agreements			2				2
Proceeds from notes payable to related party				$ 0	$ 160,000
Notes payable to related party			$ 370,000	$ 370,000			$ 370,000
Majority Shareholder [Member] | Houston and St. Charles Terminal Services Business [Member]
Subordinated Credit Agreement (Textual)
Proceeds from notes payable to related party		$ 160,000
Majority Shareholder [Member] | Corpus Christi Terminal Services Business [Member]
Subordinated Credit Agreement (Textual)
Proceeds from notes payable to related party	$ 395,000
Subordinated Debt [Member] | Majority Shareholder [Member]
Subordinated Credit Agreement (Textual)
Subordinated credit agreement, rate at period end				1.689%
Repayment of note payable to related party			$ 185,000
Notes payable to related party				$ 370,000
Subordinated Debt [Member] | Majority Shareholder [Member] | Houston and St. Charles Terminal Services Business [Member]
Subordinated Credit Agreement (Textual)
Proceeds from notes payable to related party							160,000
Subordinated credit agreement, expiration date				Mar. 1, 2020
Subordinated Debt [Member] | Majority Shareholder [Member] | Corpus Christi Terminal Services Business [Member]
Subordinated Credit Agreement (Textual)
Proceeds from notes payable to related party							$ 395,000
Subordinated credit agreement, expiration date				Oct. 1, 2020
[1]	Financial information has been retrospectively adjusted for the acquisition of the Corpus Christi Terminal Services Business. See Notes 1 and 3.

Debt, Capitalized Interest (Det

Debt, Capitalized Interest (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Capitalized Interest (Textual)
Interest costs incurred, capitalized	$ 32,000	$ 5,000

Operating Leases (Details)

Operating Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Future Minimum Rentals on Operating Leases
Remainder of 2016	$ 6,169
2,017	8,229
2,018	8,186
2,019	8,186
2,020	8,186
Thereafter	35,588
Total minimum rental payments	74,544
Operating Leases (Textual)
Rental expense for operating leases	$ 2,200	$ 800

Cash Distributions (Details)

Cash Distributions (Details) - USD ($) $ / shares in Units, $ in Thousands	Apr. 21, 2016	Feb. 11, 2016	Nov. 10, 2015	Aug. 11, 2015	May. 12, 2015	Feb. 12, 2015	Mar. 31, 2016	Mar. 31, 2015
Quarterly Cash Distributions
Total quarterly distribution (per unit)		$ 0.3200	$ 0.3075	$ 0.2925	$ 0.2775	$ 0.2660	$ 0.3400	$ 0.2775
Distributions		$ 22,711	$ 20,164	$ 18,456	$ 17,266	$ 15,829	$ 25,608	$ 17,266
General Partner’s Distribution, Including Incentive Distribution Rights [Member]
Quarterly Cash Distributions
Distributions							3,150	755
General Partner Valero [Member]
Quarterly Cash Distributions
Distributions							512	345
General Partner IDRs [Member]
Quarterly Cash Distributions
Distributions							2,638	410
Limited Partner, Common and Subordinated Units [Member]
Quarterly Cash Distributions
Distributions							22,453	16,508
Common Unitholders Public [Member]
Quarterly Cash Distributions
Distributions							7,310	4,787
Common Unitholder Valero [Member]
Quarterly Cash Distributions
Distributions							5,355	3,732
Subordinated Unitholder Valero [Member]
Quarterly Cash Distributions
Distributions							9,788	7,989
Distribution Equivalent Rights [Member]
Quarterly Cash Distributions
Distributions							$ 5	$ 3
Subsequent Event [Member]
Quarterly Cash Distributions
Total quarterly distribution (per unit)	$ 0.3400
Distributions	$ 25,608

Net Income Per Limited Partne38

Net Income Per Limited Partner Unit (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Allocation of net income to determine net income available to limited partners:
Distributions, excluding general partner's IDRs	$ 22,965	$ 16,853
General partner’s IDRs	2,638	410
DERs	5	3
Distributions and DERs declared	25,608	17,266
Undistributed earnings	17,690	4,855
Net income available to limited partners – basic and diluted	$ 43,298	$ 22,121
Net income per limited partner unit – basic and diluted:
Weighted-average units outstanding	36,520	29,426
Net income per limited partner unit – basic and diluted	$ 0.61	$ 0.37
General Partner Valero [Member]
Allocation of net income to determine net income available to limited partners:
Distributions, excluding general partner's IDRs	$ 512	$ 345
General partner’s IDRs	2,638	410
Distributions and DERs declared	3,150	755
Undistributed earnings	354	97
Net income available to limited partners – basic and diluted	3,504	852
Limited Partner, Common Units [Member]
Allocation of net income to determine net income available to limited partners:
Distributions, excluding general partner's IDRs	12,665	8,519
Distributions and DERs declared	12,665	8,519
Undistributed earnings	9,692	2,404
Net income available to limited partners – basic and diluted	$ 22,357	$ 10,923
Net income per limited partner unit – basic and diluted:
Weighted-average units outstanding	36,520	29,426
Net income per limited partner unit – basic and diluted	$ 0.61	$ 0.37
Subordinated Unitholder Valero [Member]
Allocation of net income to determine net income available to limited partners:
Distributions, excluding general partner's IDRs	$ 9,788	$ 7,989
Distributions and DERs declared	9,788	7,989
Undistributed earnings	7,640	2,353
Net income available to limited partners – basic and diluted	$ 17,428	$ 10,342
Net income per limited partner unit – basic and diluted:
Weighted-average units outstanding	28,790	28,790
Net income per limited partner unit – basic and diluted	$ 0.61	$ 0.36
Restricted Units [Member]
Allocation of net income to determine net income available to limited partners:
DERs	$ 5	$ 3
Distributions and DERs declared	5	3
Undistributed earnings	4	1
Net income available to limited partners – basic and diluted	$ 9	$ 4

Unit Activity (Details)

Unit Activity (Details) - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Partners' Capital Roll Forward (Units)
Beginning balance	66,651,071	58,760,288
Unit-based compensation	5,958	4,443
Units issued in connection with the acquisition of the Houston and St. Charles Terminal Services Business		1,947,041
Ending balance	66,657,029	60,711,772
Common Unitholders Public [Member]
Partners' Capital Roll Forward (Units)
Beginning balance	21,509,651	17,255,208
Unit-based compensation	5,958	4,443
Ending balance	21,515,609	17,259,651
Common Unitholder Valero [Member]
Partners' Capital Roll Forward (Units)
Beginning balance	15,018,602	11,539,989
Units issued in connection with the acquisition of the Houston and St. Charles Terminal Services Business		1,908,100
Ending balance	15,018,602	13,448,089
Subordinated Unitholder Valero [Member]
Partners' Capital Roll Forward (Units)
Beginning balance	28,789,989	28,789,989
Ending balance	28,789,989	28,789,989
General Partner Valero [Member]
Partners' Capital Roll Forward (Units)
Beginning balance	1,332,829	1,175,102
Units issued in connection with the acquisition of the Houston and St. Charles Terminal Services Business		38,941
Ending balance	1,332,829	1,214,043

Supplemental Cash Flow Inform40

Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	Mar. 01, 2015	Mar. 31, 2016	Mar. 31, 2015
Increase in current assets:
Receivables from related party		$ (2,834)	$ (7,662)
Prepaid expenses and other		(199)	(172)
Increase (decrease) in current liabilities:
Accounts payable		412	(275)
Accrued liabilities		139	271
Accrued liabilities – related party		180	285
Taxes other than income taxes		(6)	(224)
Deferred revenue from related party		322	22
Changes in current assets and current liabilities		(1,986)	(7,755)	[1]
Reconciliation of Net Transfers from/to Valero
Net transfers from Valero per statement of cash flows		0	22,738	[1]
Cash Flows Related to Interest and Income Taxes Paid
Interest paid		2,502	172	[2]
Income taxes paid		0	0	[2]
Supplemental Cash Flow Elements (Textual)
Cash consideration paid attributed to the historical carrying value of assets acquired		0	296,109	[1]
Cash consideration paid in excess of the carrying value of assets acquired		0	275,111	[1]
Noncash capital contributions from Valero Energy Corporation		7,390	$ 4,839
Units issued in connection with the acquisitions from Valero			1,947,041
General Partner Valero [Member]
Supplemental Cash Flow Elements (Textual)
Noncash capital contributions from Valero Energy Corporation		218	$ 136
Units issued in connection with the acquisitions from Valero			38,941
Common Unitholder Valero [Member]
Supplemental Cash Flow Elements (Textual)
Noncash capital contributions from Valero Energy Corporation		2,459	$ 1,497
Units issued in connection with the acquisitions from Valero			1,908,100
Majority Shareholder [Member]
Reconciliation of Net Transfers from/to Valero
Net transfers from Valero per statement of partners’ capital			$ 21,268
Less: Noncash transfers to Valero			(1,470)
Net transfers from Valero per statement of cash flows			22,738
Supplemental Cash Flow Elements (Textual)
Noncash capital contributions from Valero Energy Corporation		$ 7,400
Majority Shareholder [Member] | Houston and St. Charles Terminal Services Business [Member]
Supplemental Cash Flow Elements (Textual)
Cash consideration paid attributed to the historical carrying value of assets acquired			296,100
Cash consideration paid for assets acquired, total			571,200
Cash consideration paid in excess of the carrying value of assets acquired			275,100
Noncash capital contributions from Valero Energy Corporation			4,800
Consideration transferred for the acquisitions from Valero, units issued	$ 100,000		$ 100,000
Majority Shareholder [Member] | Houston and St. Charles Terminal Services Business [Member] | General Partner Valero [Member]
Supplemental Cash Flow Elements (Textual)
Units issued in connection with the acquisitions from Valero	38,941		38,941
Majority Shareholder [Member] | Houston and St. Charles Terminal Services Business [Member] | Common Unitholder Valero [Member]
Supplemental Cash Flow Elements (Textual)
Units issued in connection with the acquisitions from Valero	1,908,100		1,908,100
[1]	Financial information has been retrospectively adjusted for the acquisition of the Corpus Christi Terminal Services Business. See Notes 1 and 3.
[2]	Financial information has been retrospectively adjusted for the acquisition of the Corpus Christi Terminal Services Business.