Valero Energy Partners (VLP) 10-Q 8 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 01, 2017
Entity Information
Entity Registrant Name	VALERO ENERGY PARTNERS LP
Entity Central Index Key	1,583,103
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Amendment Flag	false
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Common Unitholders Public [Member]
Entity Information
Entity Common Stock, Units Outstanding		69,256,172
General Partner Valero [Member]
Entity Information
Entity Common Stock, Units Outstanding		1,413,391

Consolidated Balance Sheets (un

Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 115,755	$ 71,491
Receivables – related party	35,995	36,889
Receivables	225	1,682
Prepaid expenses and other	485	997
Total current assets	152,460	111,059
Property and equipment, at cost	1,340,906	1,216,288
Accumulated depreciation	(385,959)	(351,208)
Property and equipment, net	954,947	865,080
Deferred charges and other assets, net	2,743	3,118
Total assets	1,110,150	979,257
Current liabilities:
Accounts payable	14,488	10,652
Accounts payable – related party	8,781	7,348
Accrued liabilities	738	870
Accrued liabilities – related party	93	192
Accrued interest payable	6,453	1,280
Accrued interest payable – related party	844	47
Taxes other than income taxes payable	3,975	2,457
Deferred revenue – related party	432	3,525
Total current liabilities	35,804	26,371
Debt	525,177	525,355
Notes payable – related party	370,000	370,000
Other long-term liabilities	1,985	1,707
Commitments and contingencies
Partners’ capital:
Total partners’ capital	177,184	55,824
Total liabilities and partners’ capital	1,110,150	979,257
Limited Partner [Member] | Common Unitholders Public [Member]
Partners’ capital:
Common unitholders	583,436	548,619
Total partners’ capital	583,436	548,619
Limited Partner [Member] | Common Unitholder Valero [Member]
Partners’ capital:
Common unitholders	(399,718)	(482,197)
Total partners’ capital	(399,718)	(482,197)
General Partner Valero [Member]
Partners’ capital:
General partner – Valero	(6,534)	(10,598)
Total partners’ capital	$ (6,534)	$ (10,598)

Consolidated Balance Sheets (u3

Consolidated Balance Sheets (unaudited) (Parenthetical) - shares	Sep. 30, 2017	Dec. 31, 2016
Limited Partner [Member] | Common Unitholders Public [Member]
Common unitholders, units outstanding (shares)	22,487,586	21,738,692
Limited Partner [Member] | Common Unitholder Valero [Member]
Common unitholders, units outstanding (shares)	45,687,271	45,687,271
General Partner Valero [Member]
General partner – Valero, units outstanding (shares)	1,391,323	1,375,721

Consolidated Statements of Inco

Consolidated Statements of Income (unaudited) - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Operating revenues – related party		$ 109,340	$ 92,040	$ 325,701	$ 258,471
Costs and expenses:
Cost of revenues (excluding depreciation expense reflected below)	[1]	26,478	24,089	77,078	72,461
Depreciation expense		12,113	11,319	36,393	34,652
Other operating expenses		537	0	537	0
General and administrative expenses	[2]	3,865	4,094	11,558	12,174
Total costs and expenses		42,993	39,502	125,566	119,287
Operating income		66,347	52,538	200,135	139,184
Other income, net		300	76	546	210
Interest and debt expense, net of capitalized interest	[3]	(8,747)	(3,672)	(25,587)	(9,582)
Income before income taxes		57,900	48,942	175,094	129,812
Income tax expense		311	235	925	780
Net income		57,589	48,707	174,169	129,032
Less: Net loss attributable to Predecessor		0	(3,002)	0	(15,422)
Net income attributable to partners		57,589	51,709	174,169	144,454
Less: General partner’s interest in net income		13,037	6,634	33,923	15,351
Limited partners’ interest in net income		$ 44,552	$ 45,075	$ 140,246	$ 129,103
Net income per limited partner unit – basic and diluted:
Common units (in dollars per share)		$ 0.65	$ 0.77	$ 2.06	$ 2.08
Subordinated units (in dollars per share)		$ 0	$ 0.29	$ 0	$ 1.73
Weighted-average limited partner units outstanding:
Common units – basic and diluted (shares)		68,163	53,899	67,997	42,597
Subordinated units – basic and diluted (shares)		0	12,517	0	23,326
Cash distribution declared (dollars per share)		$ 0.4800	$ 0.3850	$ 1.3625	$ 1.0900
[1]	Includes cost of revenues (excluding depreciation expense) – related party of $16,474 thousand and $15,554 thousand for the three months ended September 30, 2017 and 2016, respectively, and $48,242 thousand and $45,822 thousand for the nine months ended September 30, 2017 and 2016, respectively.
[2]	Includes general and administrative expenses – related party of $3,186 thousand and $3,156 thousand for the three months ended September 30, 2017 and 2016, respectively, and $9,557 thousand and $9,353 thousand for the nine months ended September 30, 2017 and 2016, respectively.
[3]	Includes interest and debt expense – related party of $2,579 thousand and $1,649 thousand for the three months ended September 30, 2017 and 2016, respectively, and $7,029 thousand and $4,799 thousand for the nine months ended September 30, 2017 and 2016, respectively.

Consolidated Statements of Inc5

Consolidated Statements of Income (unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Supplemental information:
Cost of revenues (excluding depreciation expense) – related party	$ 16,474	$ 15,554	$ 48,242	$ 45,822
General and administrative expenses – related party	3,186	3,156	9,557	9,353
Interest and debt expense – related party	$ 2,579	$ 1,649	$ 7,029	$ 4,799

Consolidated Statements of Part

Consolidated Statements of Partners' Capital (unaudited) - USD ($) $ in Thousands	Total	Limited Partner [Member]Common Unitholders Public [Member]	Limited Partner [Member]Common Unitholder Valero [Member]	Limited Partner [Member]Subordinated Unitholder Valero [Member]	General Partner Valero [Member]	Net Investment [Member]
Beginning balance at Dec. 31, 2015	$ 394,152	$ 581,489	$ 28,430	$ (313,961)	$ (5,805)	$ 103,999
Net income (loss):
Net income (loss) attributable to Predecessor	(15,422)	0	0	0	0	(15,422)
Net income (loss) attributable to partners	144,454	42,096	41,685	45,322	15,351	0
Net transfers from Valero Energy Corporation	15,030	0	0	0	0	15,030
Allocation of Valero Energy Corporation’s net investment in acquisitions	0	0	67,800	32,758	3,049	(103,607)
Consideration paid to Valero Energy Corporation for acquisitions	(565,000)	0	(397,859)	(153,067)	(14,074)	0
Units issued to Valero Energy Corporation in connection with acquisitions	85,000	0	83,300	0	1,700	0
Conversion of subordinated units	0	0	(406,374)	406,374	0	0
Unit issuance	6,154	6,096	0	0	58	0
Transfers to (from) partners	0	(73,075)	75,765	0	(2,690)	0
Noncash capital contributions from Valero Energy Corporation	23,820	0	11,057	12,084	679	0
Cash distributions to unitholders and distribution equivalent right payments	(77,231)	(22,052)	(15,908)	(29,510)	(9,761)	0
Unit-based compensation	134	134	0	0	0	0
Ending balance at Sep. 30, 2016	11,091	534,688	(512,104)	0	(11,493)	0
Beginning balance at Dec. 31, 2016	55,824	548,619	(482,197)	0	(10,598)	0
Net income (loss):
Net income (loss) attributable to Predecessor	0
Net income (loss) attributable to partners	174,169	46,001	94,245	0	33,923	0
Unit issuance	34,177	33,429	0	0	748	0
Transfers to (from) partners	0	(16,097)	19,816	0	(3,719)	0
Noncash capital contributions from Valero Energy Corporation	27,866	0	27,308	0	558	0
Cash distributions to unitholders and distribution equivalent right payments	(115,049)	(28,713)	(58,890)	0	(27,446)	0
Unit-based compensation	197	197	0	0	0	0
Ending balance at Sep. 30, 2017	$ 177,184	$ 583,436	$ (399,718)	$ 0	$ (6,534)	$ 0

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net income	$ 174,169	$ 129,032
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	36,393	34,652
Changes in current assets and current liabilities	7,988	(2,179)
Changes in deferred charges and credits and other operating activities, net	1,269	707
Net cash provided by operating activities	219,819	162,212
Cash flows from investing activities:
Capital expenditures	(24,297)	(15,911)
Other investing activities, net	142	29
Net cash used in investing activities	(95,948)	(119,489)
Cash flows from financing activities:
Proceeds from debt borrowings	0	349,000
Repayment of debt and capital lease obligations	0	(868)
Payment of debt issuance costs	(492)	0
Proceeds from issuance of common units	35,728	2,853
Proceeds from issuance of general partner units	748	58
Payment of offering costs	(542)	(412)
Excess purchase price paid to Valero Energy Corporation over the carrying value of acquired assets	0	(376,393)
Cash distributions to unitholders and distribution equivalent right payments	(115,049)	(77,231)
Net transfers from Valero Energy Corporation	0	14,886
Net cash used in financing activities	(79,607)	(88,107)
Net increase (decrease) in cash and cash equivalents	44,264	(45,384)
Cash and cash equivalents at beginning of period	71,491	80,783
Cash and cash equivalents at end of period	115,755	35,399
Acquisitions from Valero Energy Corporation [Member]
Cash flows from investing activities:
Acquisition of interest in crude system and acquisition from Valero Energy Corporation	0	(103,607)
Red River Crude System [Member]
Cash flows from investing activities:
Acquisition of interest in crude system and acquisition from Valero Energy Corporation	$ (71,793)	$ 0

Description of Business, Basis

Description of Business, Basis of Presentation, and Significant Accounting Policies	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES	1. DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES Description of 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, and other than Diamond Green Diesel Holdings, LLC (DGD), a joint venture consolidated by Valero. We acquired from Valero the McKee Terminal Services Business on April 1, 2016, the Meraux and Three Rivers Terminal Services Business on September 1, 2016, and Parkway Pipeline LLC (Parkway Pipeline) and the Port Arthur terminal (defined in Note 2 ) on November 1, 2017. We acquired the Red River crude system (defined in Note 2 ) from Plains All American Pipeline L.P. (Plains) on January 18, 2017. See Note 2 for further discussion of these acquisitions. Our assets consist 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 ten of Valero’s refineries. We generate operating revenues by providing fee-based transportation and terminaling services. Basis of Presentation General 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. Operating results for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. The balance sheet as of December 31, 2016 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, 2016 . Acquisitions from Valero The acquisitions from Valero in 2016 noted above were accounted for as transfers of businesses between entities under the common control of Valero. Accordingly, we recorded these acquisitions on our balance sheet at Valero’s carrying value as of the beginning of the period of transfer, and we retrospectively adjusted prior period financial statements and financial information to furnish comparative information. We refer to the historical results of the transferred assets from Valero prior to their transfer to us 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 from Valero 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 from Valero, 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 acquisitions of Parkway Pipeline and the Port Arthur terminal on November 1, 2017 will be accounted for as acquisitions of assets and as such, our prior period financial statements and financial information will not be retrospectively adjusted. However, because these assets were transferred between entities under the common control of Valero, we will record these assets on our balance sheet at Valero’s carrying value as of November 1, 2017. The financial information presented for the periods after the effective dates of each acquisition represents the consolidated financial position, results of operations, and cash flows of the Partnership. Reclassifications Certain amounts reported as of December 31, 2016 and for the nine months ended September 30, 2016 have been reclassified to conform to the 2017 presentation. 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 Pronouncement Adopted During the Period ASU No. 2017-01 In January 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2017-01, “Business Combinations (Topic 805),” to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The provisions of this ASU provide a more robust framework to use in determining when a set of assets and activities is a business by clarifying the requirements related to inputs, processes, and outputs. These provisions are to be applied prospectively and are effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted. Our early adoption of this ASU effective January 1, 2017 did not have an effect on our financial position or results of operations. However, our acquisitions of Parkway Pipeline and the Port Arthur terminal on November 1, 2017 will be, and more of our future acquisitions may be, accounted for as acquisitions of assets in accordance with this ASU. Accounting Pronouncements Not Yet Adopted ASU No. 2014-09 In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” to clarify the principles for recognizing revenue. This new standard is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual periods. We have completed our evaluation of the provisions of this standard and concluded that our adoption will not materially change the amount or timing of revenues recognized by us, nor will it materially affect our financial position. We will adopt this new standard effective January 1, 2018, and we will use the modified retrospective method of adoption as permitted by the standard. Under that method, the cumulative effect of initially applying the standard is recognized as an adjustment to the opening balance of partners’ capital, and revenues reported in the periods prior to the date of adoption are not changed. We do not, however, expect to make such an adjustment to partners’ capital. We are currently developing our revenue disclosures and enhancing our accounting systems to enable the preparation of such disclosures as well as the implementation of our internal controls. Certain of our commercial agreements are considered operating leases under U.S. GAAP. The scope of Topic 606 does not extend to revenues generated by lease arrangements; therefore, lease revenues generated by us will continue to be accounted for under existing lease accounting standards and will be reflected in a separate revenue line item on our statements of income. ASU No. 2016-01 In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments—Overall (Subtopic 825-10),” to enhance the reporting model for financial instruments regarding certain aspects of recognition, measurement, presentation, and disclosure. The provisions of this ASU are effective for annual reporting periods beginning after December 15, 2017, and interim reporting periods within those annual periods. This ASU is to be applied using a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The adoption of this ASU effective January 1, 2018 will not affect our financial position or results of operations, but will result in revised disclosures. ASU No. 2016-02 In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” 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. This new standard is effective for annual reporting periods beginning after December 15, 2018, and interim reporting periods within those annual periods, with early adoption permitted. We will adopt this new standard on January 1, 2019 and we expect to use the modified retrospective method of adoption as permitted by the standard. We are developing enhanced contracting and lease evaluation processes and information systems to support such processes, as well as new and enhanced accounting systems to account for our leases and support the required disclosures. We continue to evaluate the effect that adopting this standard will have on our financial statements and related disclosures.

Acquisitions

Acquisitions	9 Months Ended
	Sep. 30, 2017
Business Combinations [Abstract]
ACQUISITIONS	2. ACQUISITIONS Acquisitions in 2016 McKee Terminal Services Business Effective April 1, 2016 , we acquired from Valero a subsidiary that owns and operates a crude oil, intermediates, and refined petroleum products terminal supporting Valero’s McKee Refinery 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 to Valero having an aggregate value of $36.0 million . We funded the cash distribution with $65.0 million of our cash on hand and $139.0 million of borrowings under our revolving credit facility. See Note 5 for further discussion of the borrowings under our revolving credit facility. This acquisition was accounted for as an acquisition of a business. See Note 1 for a further discussion about the accounting and basis of presentation of this acquisition. Meraux and Three Rivers Terminal Services Business Effective September 1, 2016 , we acquired from Valero two subsidiaries that own and operate crude oil, intermediates, and refined petroleum products terminals supporting Valero’s Meraux and Three Rivers Refineries for total consideration of $325.0 million , which consisted of (i) a cash distribution of $276.0 million and (ii) the issuance of 1,149,905 common units and 23,467 general partner units to Valero having an aggregate value of $49.0 million . We funded the cash distribution with $66.0 million of our cash on hand and $210.0 million of borrowings under our revolving credit facility. See Note 5 for further discussion of the borrowings under our revolving credit facility. This acquisition was accounted for as an acquisition of a business. See Note 1 for a further discussion about the accounting and basis of presentation of this acquisition. Acquisitions in 2017 Red River Crude System Effective January 18, 2017 , we acquired a 40 percent undivided interest in (i) the newly constructed Hewitt segment of Plains’ Red River pipeline (the Hewitt segment), (ii) two 150,000 shell barrel capacity tanks located at Hewitt Station in Hewitt, Oklahoma (the Hewitt Storage Tanks), and (iii) a pipeline connection from Hewitt Station to Wasson Station (the Wasson Interconnect) (collectively, the Red River crude system) for total cash consideration of $71.8 million . We funded this acquisition with available cash on hand. The Hewitt segment consists of a 138-mile, 16-inch crude oil pipeline with 150,000 barrels per day of throughput capacity that originates at Plains Marketing L.P.’s Cushing, Oklahoma terminal and ends at Hewitt Station. The pipeline supports Valero’s Ardmore Refinery and began supplying crude oil to Valero in January 2017. We retain a right to participate in any future expansions of the pipeline. This acquisition was accounted for as an acquisition of assets. See Note 3 for a further discussion of the commercial agreement we entered into with Valero concurrent with this acquisition. We also entered into a Joint Ownership Agreement (JOA) and an Operating and Administrative Services Agreement with Plains concurrent with this acquisition. The JOA provides us with access to the remaining 60 percent of the capacity of the Hewitt Storage Tanks and the Wasson Interconnect and continues until terminated by mutual agreement. This access arrangement is accounted for as an operating lease. The administrative agreement facilitates the day-to-day operations and management functions of the pipeline for an initial five -year term and automatically renews for successive five -year terms. Parkway Pipeline and Port Arthur Terminal Effective November 1, 2017 , we acquired Parkway Pipeline , a subsidiary of Valero, that owns and operates a 141-mile, 16-inch refined petroleum products pipeline with 110,000 barrels per day of capacity that transports refined petroleum products from Valero’s St. Charles Refinery, located in Norco, Louisiana, to Collins, Mississippi for supply into the Plantation and Colonial pipeline systems, for cash consideration of $200.0 million . We funded the cash distribution with $82.0 million of our cash on hand and $118.0 million of borrowings under our revolving credit facility. We also acquired Valero Partners Port Arthur, LLC, a subsidiary of Valero that owns certain terminaling assets (Port Arthur terminal) that support Valero’s Port Arthur Refinery for total consideration of $308.0 million , which consisted of (i) a cash distribution of $262.0 million and (ii) the issuance of 1,081,315 common units and 22,068 general partner units to Valero having an aggregate value of $46.0 million . We funded the cash distribution with $262.0 million of borrowings under our revolving credit facility. See Note 5 for further discussion of the borrowings under our revolving credit facility. These acquisitions were accounted for as acquisitions of assets. Concurrent with the acquisitions of Parkway Pipeline and the Port Arthur terminal described above, we entered into various amended and restated agreements with Valero.

Related-Party Transactions

Related-Party Transactions	9 Months Ended
	Sep. 30, 2017
Related Party Transactions [Abstract]
RELATED-PARTY TRANSACTIONS	3. RELATED-PARTY TRANSACTIONS New and Amended Commercial Agreements in 2017 Agreement with Diamond Green Diesel Effective March 31, 2017 , we entered into a commercial agreement with DGD to construct and operate a rail loading facility located at Valero’s St. Charles Refinery for the purpose of loading DGD’s renewable diesel onto railcars. The construction of the rail loading facility was completed in April 2017, and we began providing services to DGD in May 2017. In addition, we have agreed to construct a new 180,000 barrel storage tank and provide storage services to DGD. The construction of the new tank is expected to be completed in the first quarter of 2018. The agreement has an initial term that ends on June 30, 2033 . The agreement contains minimum commitments for DGD’s use of the assets. Agreements with Valero Effective March 31, 2017 and in connection with the DGD agreement described above, we amended our land lease and access agreement with Valero related to our St. Charles terminal to include our use of Valero’s rail loading facility. Concurrent with the acquisition of the Red River crude system as described in Note 2 , we entered into a 10 -year throughput agreement under which we provide transportation services to Valero. The agreement provides Valero an option to renew for one additional five -year term, unless terminated by Valero upon at least 180 days’ prior written notice before the end of the initial term, and it contains minimum throughput requirements and inflation escalators. Summary of Transactions The amounts shown in our balance sheets as “deferred revenue – 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 certain schedules of our master transportation services agreement and master terminal services agreement (collectively, the commercial agreements). All of our operating revenues are generated by providing services under our commercial agreements described above. The cost of services provided to us by Valero, including the cost of financing provided to us by Valero in connection with certain acquisitions from Valero as more fully described in Notes 2 and 5 , is reflected in the supplemental information disclosure on our statements of income. Concentration Risk Substantially all of our operating revenues and “receivables – related party” resulted from transactions with Valero. Therefore, we are subject to the business risks associated with Valero’s business. Insurance Recoveries During the three and nine months ended September 30, 2017 , we experienced property damage losses and repair costs associated with Hurricane Harvey primarily at our Houston terminal and Port Arthur products system. As a result of these losses, we have submitted claims under our insurance policies with Valero. The amount shown in our statements of income as other operating expenses reflects the uninsured portion of our losses. As of September 30, 2017, we have recorded a $ 2.3 million receivable from Valero related to our property damage claims, which was recorded as a reduction to other operating expenses. Operating Leases – Lessor 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. These lease revenues are recorded within “operating revenues – related party” in our statements of income. The components of our lease revenues were as follows (in thousands): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Minimum rental revenues $ 70,588 $ 60,133 $ 208,859 $ 164,659 Contingent rental revenues 15,223 10,710 42,721 28,271 Total lease revenues $ 85,811 $ 70,843 $ 251,580 $ 192,930 As of September 30, 2017 , future minimum rentals to be received related to these noncancelable commercial agreements were as follows (in thousands): Remainder of 2017 $ 70,589 2018 280,056 2019 280,056 2020 280,824 2021 280,056 Thereafter 2,394,350 Total minimum rental payments $ 3,585,931

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 30, 2017
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	4. PROPERTY AND EQUIPMENT Our property and equipment includes non-leased assets and assets under operating leases for which we are the lessor under U.S. GAAP. Major classes of property and equipment consisted of the following (in thousands): September 30, 2017 Non-Leased Assets Assets Total Land $ 4,672 $ — $ 4,672 Pipelines and related assets 224,794 113,381 338,175 Terminals and related assets 120,482 816,684 937,166 Other 10,530 — 10,530 Construction-in-progress 50,363 — 50,363 Property and equipment, at cost 410,841 930,065 1,340,906 Accumulated depreciation (123,924 ) (262,035 ) (385,959 ) Property and equipment, net $ 286,917 $ 668,030 $ 954,947 December 31, 2016 Non-Leased Assets Assets Total Land $ 4,672 $ — $ 4,672 Pipelines and related assets 224,656 47,366 272,022 Terminals and related assets 112,614 793,765 906,379 Other 9,538 — 9,538 Construction-in-progress 23,677 — 23,677 Property and equipment, at cost 375,157 841,131 1,216,288 Accumulated depreciation (115,538 ) (235,670 ) (351,208 ) Property and equipment, net $ 259,619 $ 605,461 $ 865,080

Debt and Notes Payable - Relate

Debt and Notes Payable - Related Party	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
DEBT AND NOTES PAYABLE - RELATED PARTY	5. DEBT AND NOTES PAYABLE – RELATED PARTY Debt We have a $750.0 million senior unsecured revolving credit facility agreement (the Revolver) that matures in November 2020 . We have the option to increase the aggregate commitments under the Revolver to $1.0 billion , subject to certain restrictions. The Revolver also provides for the issuance of letters of credit of up to $100.0 million . Borrowings on the Revolver bear interest at a variable rate, which was 2.75 percent and 2.3125 percent as of September 30, 2017 and December 31, 2016 , respectively. There was no activity related to our debt during the nine months ended September 30, 2017 . During the nine months ended September 30, 2016 , we borrowed $139.0 million and $210.0 million under the Revolver in connection with the acquisitions of the McKee Terminal Services Business and the Meraux and Three Rivers Terminal Services Business, respectively. See Note 2 for information about our acquisitions from Valero. In connection with the acquisitions of Parkway Pipeline and the Port Arthur terminal as described in Note 2 , we borrowed $118.0 million and $262.0 million , respectively, under the Revolver on November 1, 2017 . These borrowings bear interest at variable rates, which were 2.75 percent and 2.875 percent, respectively, as of November 1, 2017 . Notes Payable – Related Party There was no activity under our two subordinated credit agreements with Valero (the Loan Agreements) for the nine months ended September 30, 2017 and 2016 . Borrowings on the Loan Agreements bear interest at a variable rate, which was 2.73722 percent and 2.27 percent as of September 30, 2017 and December 31, 2016 , respectively.

Operating Leases

Operating Leases	9 Months Ended
	Sep. 30, 2017
Leases, Operating [Abstract]
OPERATING LEASES	6. OPERATING LEASES We have long-term operating lease commitments for pipelines and 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 lease term or a revised rental payment based on fair rental value or negotiated value. Currently, one of our leases with Valero does not contain a renewal option. We expect our leases will be renewed or replaced by other leases in the normal course of business. As of September 30, 2017 , our future minimum rentals for leases having initial or remaining noncancelable lease terms in excess of one year were as follows (in thousands): Agreements With Related Party Others Total Remainder of 2017 $ 2,436 $ 226 $ 2,662 2018 9,744 1,068 10,812 2019 9,744 1,052 10,796 2020 9,745 1,052 10,797 2021 9,745 1,047 10,792 Thereafter 219,893 25,362 245,255 Total minimum rental payments $ 261,307 $ 29,807 $ 291,114 Minimum rental expenses for all operating leases are shown in the following table (in thousands). Contingent rental expense for all operating leases was immaterial. Three Months Ended Nine Months Ended 2017 2016 2017 2016 Minimum rental expenses – related party $ 2,437 $ 2,281 $ 7,310 $ 6,518 Minimum rental expenses – others 304 175 909 541 Total minimum rental expenses $ 2,741 $ 2,456 $ 8,219 $ 7,059

Cash Distributions

Cash Distributions	9 Months Ended
	Sep. 30, 2017
Partners' Capital [Abstract]
CASH DISTRIBUTIONS	7. CASH DISTRIBUTIONS Our partnership agreement prescribes the amount and priority of cash distributions that our limited partners 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, 2016 : Quarterly Period Ended Total Total Cash Declaration Record Distribution September 30, 2017 $ 0.4800 $ 46,242 October 19, 2017 November 1, 2017 November 9, 2017 June 30, 2017 0.4550 42,111 July 19, 2017 August 1, 2017 August 10, 2017 March 31, 2017 0.4275 38,043 April 20, 2017 May 2, 2017 May 11, 2017 December 31, 2016 0.4065 34,895 January 20, 2017 February 2, 2017 February 10, 2017 September 30, 2016 0.3850 32,175 October 24, 2016 November 3, 2016 November 10, 2016 June 30, 2016 0.3650 28,912 July 21, 2016 August 1, 2016 August 9, 2016 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 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 Nine Months Ended 2017 2016 2017 2016 General partner’s distributions: General partner’s distributions $ 925 $ 644 $ 2,362 $ 1,734 General partner’s incentive distribution 12,074 5,600 30,631 12,462 Total general partner’s distributions 12,999 6,244 32,993 14,196 Limited partners’ distributions: Common – public 10,789 8,336 30,620 23,495 Common – Valero 22,449 17,590 62,768 28,692 Subordinated – Valero — — — 20,297 Total limited partners’ distributions 33,238 25,926 93,388 72,484 DERs 5 5 15 15 Total cash distributions, including DERs $ 46,242 $ 32,175 $ 126,396 $ 86,695

Net Income Per Limited Partner

Net Income Per Limited Partner Unit	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
NET INCOME PER LIMITED PARTNER UNIT	8. 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 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 from Valero, 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 and nine months ended September 30, 2017 and 2016 , 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 the three and nine months ended September 30, 2017 and 2016 . Effective August 10, 2016 , all of our subordinated units, which were owned by Valero, were converted on a one-for-one basis into common units. The subordinated units were only allocated earnings generated by us through the conversion date. See Note 9 for further discussion of the conversion of subordinated units. Net income per unit was computed as follows (in thousands, except per unit amounts): Three Months Ended September 30, 2017 General Limited Partners Units Restricted Total Allocation of net income to determine net income available to limited partners: Distributions, excluding general partner’s IDRs $ 925 $ 33,238 $ — $ 34,163 General partner’s IDRs 12,074 — — 12,074 DERs — — 5 5 Distributions and DERs declared 12,999 33,238 5 46,242 Undistributed earnings 38 11,307 2 11,347 Net income available to $ 13,037 $ 44,545 $ 7 $ 57,589 Net income per limited partner unit – basic and diluted: Weighted-average units outstanding 68,163 Net income per limited partner unit – basic and diluted $ 0.65 Three Months Ended September 30, 2016 Limited Partners General Common Subordinated Restricted Units Total Allocation of net income to determine net income available to limited partners: Distributions, excluding general partner’s IDRs $ 644 $ 25,926 $ — $ — $ 26,570 General partner’s IDRs 5,600 — — — 5,600 DERs — — — 5 5 Distributions and DERs declared 6,244 25,926 — 5 32,175 Undistributed earnings 390 15,533 3,607 4 19,534 Net income available to $ 6,634 $ 41,459 $ 3,607 $ 9 $ 51,709 Net income per limited partner unit – basic and diluted: Weighted-average units outstanding 53,899 12,517 Net income per limited partner unit – basic and diluted $ 0.77 $ 0.29 Nine Months Ended September 30, 2017 General Limited Partners Common Units Restricted Total Allocation of net income to determine net income available to limited partners: Distributions, excluding general partner’s IDRs $ 2,362 $ 93,388 $ — $ 95,750 General partner’s IDRs 30,631 — — 30,631 DERs — — 15 15 Distributions and DERs declared 32,993 93,388 15 126,396 Undistributed earnings 930 46,834 9 47,773 Net income available to limited partners – basic and diluted $ 33,923 $ 140,222 $ 24 $ 174,169 Net income per limited partner unit – basic and diluted: Weighted-average units outstanding 67,997 Net income per limited partner unit – basic and diluted $ 2.06 Nine Months Ended September 30, 2016 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 $ 1,734 $ 52,187 $ 20,297 $ — $ 74,218 General partner’s IDRs 12,462 — — — 12,462 DERs — — — 15 15 Distributions and DERs declared 14,196 52,187 20,297 15 86,695 Undistributed earnings 1,155 36,568 20,025 11 57,759 Net income available to limited partners – basic and diluted $ 15,351 $ 88,755 $ 40,322 $ 26 $ 144,454 Net income per limited partner unit – basic and diluted: Weighted-average units outstanding 42,597 23,326 Net income per limited partner unit – basic and diluted $ 2.08 $ 1.73

Partners' Capital

Partners' Capital	9 Months Ended
	Sep. 30, 2017
Partners' Capital Notes [Abstract]
PARTNERS' CAPITAL	9. PARTNERS’ CAPITAL Unit Activity Activity in the number of units was as follows: Common General Partner Public Valero Subordinated Total 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 Units issued in connection with acquisitions (see Note 2) — 1,878,680 — 38,340 1,917,020 Conversion of subordinated units — 28,789,989 (28,789,989 ) — — Units issued under ATM Program 65,980 — — — 65,980 General partner units issued to maintain 2% interest — — — 1,346 1,346 Balance as of September 30, 2016 21,581,589 45,687,271 — 1,372,515 68,641,375 Balance as of December 31, 2016 21,738,692 45,687,271 — 1,375,721 68,801,684 Unit-based compensation 5,997 — — — 5,997 Units issued under ATM Program 742,897 — — — 742,897 General partner units issued to maintain 2% interest — — — 15,602 15,602 Balance as of September 30, 2017 22,487,586 45,687,271 — 1,391,323 69,566,180 ATM Program On September 16, 2016, we entered into an equity distribution agreement pursuant to which we may offer and sell from time to time our common units having an aggregate offering price of up to $350.0 million based on amounts, at prices, and on terms to be determined by market conditions and other factors at the time of our offerings (such continuous offering program, or at-the-market program, referred to as our “ATM Program”). The table below summarizes activities of the common units issued under our ATM Program and general partner units issued to maintain the 2.0 percent general partner interest in the Partnership. Units Issued Total Proceeds Offering Costs Net Proceeds (in thousands) Nine months ended September 30, 2017: Common – public 742,897 $ 35,728 $ 542 $ 35,186 General partner 15,602 748 — 748 Nine months ended September 30, 2016: Common – public 65,980 2,853 39 2,814 General partner 1,346 58 — 58 Subordinated Unit Conversion Effective August 10, 2016 , all of our subordinated units, which were owned by Valero, were converted on a one-for-one basis into common units. The conversion of the subordinated units does not impact the amount of cash distributions paid or the total number of outstanding units. Transfers to (from) Partners Subsequent to the expiration of the subordination period on August 10, 2016, all of our common units have equal rights, including rights to distributions and to our net assets in the event of liquidation. As a result, a reallocation of the carrying values of our public common unitholders’ interest in us and Valero’s common unitholder interest in us is required when a change in ownership occurs in order for the portion of those carrying values associated with activity subsequent to the subordination period to be equal to the respective unitholders’ ownership interests (in units) in us. Transfers to (from) partners resulted from the issuance of equity under our ATM Program for the nine months ended September 30, 2017 . During the nine months ended September 30, 2016 , transfers to (from) partners resulted from the issuance of equity to Valero in connection with our acquisition of the Meraux and Three Rivers Terminal Services Business and issuance of equity under our ATM Program.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	9 Months Ended
	Sep. 30, 2017
Supplemental Cash Flow Information [Abstract]
SUPPLEMENTAL CASH FLOW INFORMATION	10. 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): Nine Months Ended 2017 2016 Decrease (increase) in current assets: Receivables – related party $ 894 $ (7,668 ) Receivables (225 ) — Prepaid expenses and other 512 223 Increase (decrease) in current liabilities: Accounts payable 1,361 791 Accounts payable – related party 1,433 (558 ) Accrued liabilities (283 ) (212 ) Accrued liabilities – related party (99 ) (66 ) Accrued interest payable 5,173 565 Accrued interest payable – related party 797 71 Taxes other than income taxes payable 1,518 1,000 Deferred revenue – related party (3,093 ) 3,675 Changes in current assets and current liabilities $ 7,988 $ (2,179 ) Noncash investing and financing activities that affected recognized assets or liabilities for the nine months ended September 30, 2017 and 2016 were as follows (in thousands): Nine Months Ended 2017 2016 Transfer (from) to Valero for: Deferred income taxes $ — $ (190 ) Change in accrued capital expenditures — 46 Increase (decrease) in accounts payable related to capital expenditures 2,424 (2,499 ) Noncash capital contributions from Valero 27,866 23,820 Units issued to Valero in connection with the acquisitions (see Note 2) — 85,000 In addition to the activities in the above table, noncash financing activities for the nine months ended September 30, 2017 included the transfers to (from) partners to reflect the impact of ownership changes occurring as a result of the issuance of common units under our ATM Program described in Note 9 . Noncash financing activities for the nine months ended September 30, 2016 included: • the conversion of all of our outstanding subordinated units into common units having an aggregate value of $406.4 million , described in Note 9 ; and • the transfers to (from) partners to reflect the impact of ownership changes occurring as a result of the issuance of common units (i) to Valero for the acquisition of the Meraux and Three Rivers Terminal Services Business and (ii) under our ATM Program, described in Note 9 . The following table presents our investing and financing cash outflows in connection with the acquisitions from Valero described in Note 2 (in thousands). Of the cash consideration paid, the portion attributed to Valero’s historical carrying value of each acquisition was reflected as an investing cash outflow and the excess purchase price paid over the carrying value of each acquisition was reflected as a financing cash outflow. Investing Financing Total Nine months ended September 30, 2016: McKee Terminal Services Business $ 51,361 $ 152,639 $ 204,000 Meraux and Three Rivers Terminal Services Business 52,246 223,754 276,000 $ 103,607 $ 376,393 $ 480,000 There were no net transfers from Valero during the nine months ended September 30, 2017 . 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 (in thousands) for the nine months ended September 30, 2016 . Nine Months Ended September 30, 2016 Net transfers from Valero per statement of partners’ capital $ 15,030 Less: Noncash transfers from Valero 144 Net transfers from Valero per statement of cash flows $ 14,886 Cash flows related to interest and income taxes paid were as follows (in thousands): Nine Months Ended 2017 2016 Interest paid $ 19,136 $ 8,688 Income taxes paid 695 496

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2017
Fair Value Disclosures [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	11. FAIR VALUE OF FINANCIAL INSTRUMENTS Financial instruments that we recognize in our balance sheets at their carrying amounts are shown in the table below along with their associated fair values (in thousands): September 30, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Financial assets: Cash and cash equivalents $ 115,755 $ 115,755 $ 71,491 $ 71,491 Financial liabilities: Debt: Revolver 30,000 30,000 30,000 30,000 Senior Notes 495,177 516,305 495,355 506,670 Notes payable – related party 370,000 370,000 370,000 370,000 The methods and significant assumptions used to estimate the fair value of these financial instruments are as follows: • 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 variable-rate debt, which includes our Revolver and “notes payable – related party,” approximate their carrying values as our borrowings bear interest based upon short-term floating market interest rates. The fair value of our fixed-rate 4.375 percent Senior Notes is determined primarily using the market approach based on quoted prices provided by vendor pricing services. 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.

Description of Business, Basi19

Description of Business, Basis of Presentation, and Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation General 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. Operating results for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. The balance sheet as of December 31, 2016 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, 2016 . Acquisitions from Valero The acquisitions from Valero in 2016 noted above were accounted for as transfers of businesses between entities under the common control of Valero. Accordingly, we recorded these acquisitions on our balance sheet at Valero’s carrying value as of the beginning of the period of transfer, and we retrospectively adjusted prior period financial statements and financial information to furnish comparative information. We refer to the historical results of the transferred assets from Valero prior to their transfer to us 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 from Valero 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 from Valero, 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 acquisitions of Parkway Pipeline and the Port Arthur terminal on November 1, 2017 will be accounted for as acquisitions of assets and as such, our prior period financial statements and financial information will not be retrospectively adjusted. However, because these assets were transferred between entities under the common control of Valero, we will record these assets on our balance sheet at Valero’s carrying value as of November 1, 2017. The financial information presented for the periods after the effective dates of each acquisition represents the consolidated financial position, results of operations, and cash flows of the Partnership.
Reclassifications	Reclassifications Certain amounts reported as of December 31, 2016 and for the nine months ended September 30, 2016 have been reclassified to conform to the 2017 presentation.
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.
New Accounting Pronouncements	Accounting Pronouncement Adopted During the Period ASU No. 2017-01 In January 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2017-01, “Business Combinations (Topic 805),” to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The provisions of this ASU provide a more robust framework to use in determining when a set of assets and activities is a business by clarifying the requirements related to inputs, processes, and outputs. These provisions are to be applied prospectively and are effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted. Our early adoption of this ASU effective January 1, 2017 did not have an effect on our financial position or results of operations. However, our acquisitions of Parkway Pipeline and the Port Arthur terminal on November 1, 2017 will be, and more of our future acquisitions may be, accounted for as acquisitions of assets in accordance with this ASU. Accounting Pronouncements Not Yet Adopted ASU No. 2014-09 In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” to clarify the principles for recognizing revenue. This new standard is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual periods. We have completed our evaluation of the provisions of this standard and concluded that our adoption will not materially change the amount or timing of revenues recognized by us, nor will it materially affect our financial position. We will adopt this new standard effective January 1, 2018, and we will use the modified retrospective method of adoption as permitted by the standard. Under that method, the cumulative effect of initially applying the standard is recognized as an adjustment to the opening balance of partners’ capital, and revenues reported in the periods prior to the date of adoption are not changed. We do not, however, expect to make such an adjustment to partners’ capital. We are currently developing our revenue disclosures and enhancing our accounting systems to enable the preparation of such disclosures as well as the implementation of our internal controls. Certain of our commercial agreements are considered operating leases under U.S. GAAP. The scope of Topic 606 does not extend to revenues generated by lease arrangements; therefore, lease revenues generated by us will continue to be accounted for under existing lease accounting standards and will be reflected in a separate revenue line item on our statements of income. ASU No. 2016-01 In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments—Overall (Subtopic 825-10),” to enhance the reporting model for financial instruments regarding certain aspects of recognition, measurement, presentation, and disclosure. The provisions of this ASU are effective for annual reporting periods beginning after December 15, 2017, and interim reporting periods within those annual periods. This ASU is to be applied using a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The adoption of this ASU effective January 1, 2018 will not affect our financial position or results of operations, but will result in revised disclosures. ASU No. 2016-02 In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” 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. This new standard is effective for annual reporting periods beginning after December 15, 2018, and interim reporting periods within those annual periods, with early adoption permitted. We will adopt this new standard on January 1, 2019 and we expect to use the modified retrospective method of adoption as permitted by the standard. We are developing enhanced contracting and lease evaluation processes and information systems to support such processes, as well as new and enhanced accounting systems to account for our leases and support the required disclosures. We continue to evaluate the effect that adopting this standard will have on our financial statements and related disclosures.
Net income per limited partner	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 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 from Valero, 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.
Fair value of financial instruments	The methods and significant assumptions used to estimate the fair value of these financial instruments are as follows: • 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 variable-rate debt, which includes our Revolver and “notes payable – related party,” approximate their carrying values as our borrowings bear interest based upon short-term floating market interest rates. The fair value of our fixed-rate 4.375 percent Senior Notes is determined primarily using the market approach based on quoted prices provided by vendor pricing services. 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.

Related-Party Transactions (Tab

Related-Party Transactions (Tables)	9 Months Ended
	Sep. 30, 2017
Related Party Transactions [Abstract]
Lessor disclosure of operating leases	As of September 30, 2017 , future minimum rentals to be received related to these noncancelable commercial agreements were as follows (in thousands): Remainder of 2017 $ 70,589 2018 280,056 2019 280,056 2020 280,824 2021 280,056 Thereafter 2,394,350 Total minimum rental payments $ 3,585,931 The components of our lease revenues were as follows (in thousands): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Minimum rental revenues $ 70,588 $ 60,133 $ 208,859 $ 164,659 Contingent rental revenues 15,223 10,710 42,721 28,271 Total lease revenues $ 85,811 $ 70,843 $ 251,580 $ 192,930

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2017
Property, Plant and Equipment [Abstract]
Major classes of property and equipment	Major classes of property and equipment consisted of the following (in thousands): September 30, 2017 Non-Leased Assets Assets Total Land $ 4,672 $ — $ 4,672 Pipelines and related assets 224,794 113,381 338,175 Terminals and related assets 120,482 816,684 937,166 Other 10,530 — 10,530 Construction-in-progress 50,363 — 50,363 Property and equipment, at cost 410,841 930,065 1,340,906 Accumulated depreciation (123,924 ) (262,035 ) (385,959 ) Property and equipment, net $ 286,917 $ 668,030 $ 954,947 December 31, 2016 Non-Leased Assets Assets Total Land $ 4,672 $ — $ 4,672 Pipelines and related assets 224,656 47,366 272,022 Terminals and related assets 112,614 793,765 906,379 Other 9,538 — 9,538 Construction-in-progress 23,677 — 23,677 Property and equipment, at cost 375,157 841,131 1,216,288 Accumulated depreciation (115,538 ) (235,670 ) (351,208 ) Property and equipment, net $ 259,619 $ 605,461 $ 865,080

Operating Leases (Tables)

Operating Leases (Tables)	9 Months Ended
	Sep. 30, 2017
Leases, Operating [Abstract]
Future minimum rentals for leases having initial or remaining noncancelable lease terms in excess of one year	As of September 30, 2017 , our future minimum rentals for leases having initial or remaining noncancelable lease terms in excess of one year were as follows (in thousands): Agreements With Related Party Others Total Remainder of 2017 $ 2,436 $ 226 $ 2,662 2018 9,744 1,068 10,812 2019 9,744 1,052 10,796 2020 9,745 1,052 10,797 2021 9,745 1,047 10,792 Thereafter 219,893 25,362 245,255 Total minimum rental payments $ 261,307 $ 29,807 $ 291,114
Schedule of minimum rent expense	Minimum rental expenses for all operating leases are shown in the following table (in thousands). Contingent rental expense for all operating leases was immaterial. Three Months Ended Nine Months Ended 2017 2016 2017 2016 Minimum rental expenses – related party $ 2,437 $ 2,281 $ 7,310 $ 6,518 Minimum rental expenses – others 304 175 909 541 Total minimum rental expenses $ 2,741 $ 2,456 $ 8,219 $ 7,059

Cash Distributions (Tables)

Cash Distributions (Tables)	9 Months Ended
	Sep. 30, 2017
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, 2016 : Quarterly Period Ended Total Total Cash Declaration Record Distribution September 30, 2017 $ 0.4800 $ 46,242 October 19, 2017 November 1, 2017 November 9, 2017 June 30, 2017 0.4550 42,111 July 19, 2017 August 1, 2017 August 10, 2017 March 31, 2017 0.4275 38,043 April 20, 2017 May 2, 2017 May 11, 2017 December 31, 2016 0.4065 34,895 January 20, 2017 February 2, 2017 February 10, 2017 September 30, 2016 0.3850 32,175 October 24, 2016 November 3, 2016 November 10, 2016 June 30, 2016 0.3650 28,912 July 21, 2016 August 1, 2016 August 9, 2016 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 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 Nine Months Ended 2017 2016 2017 2016 General partner’s distributions: General partner’s distributions $ 925 $ 644 $ 2,362 $ 1,734 General partner’s incentive distribution 12,074 5,600 30,631 12,462 Total general partner’s distributions 12,999 6,244 32,993 14,196 Limited partners’ distributions: Common – public 10,789 8,336 30,620 23,495 Common – Valero 22,449 17,590 62,768 28,692 Subordinated – Valero — — — 20,297 Total limited partners’ distributions 33,238 25,926 93,388 72,484 DERs 5 5 15 15 Total cash distributions, including DERs $ 46,242 $ 32,175 $ 126,396 $ 86,695

Net Income Per Limited Partne24

Net Income Per Limited Partner Unit (Tables)	9 Months Ended
	Sep. 30, 2017
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 September 30, 2017 General Limited Partners Units Restricted Total Allocation of net income to determine net income available to limited partners: Distributions, excluding general partner’s IDRs $ 925 $ 33,238 $ — $ 34,163 General partner’s IDRs 12,074 — — 12,074 DERs — — 5 5 Distributions and DERs declared 12,999 33,238 5 46,242 Undistributed earnings 38 11,307 2 11,347 Net income available to $ 13,037 $ 44,545 $ 7 $ 57,589 Net income per limited partner unit – basic and diluted: Weighted-average units outstanding 68,163 Net income per limited partner unit – basic and diluted $ 0.65 Three Months Ended September 30, 2016 Limited Partners General Common Subordinated Restricted Units Total Allocation of net income to determine net income available to limited partners: Distributions, excluding general partner’s IDRs $ 644 $ 25,926 $ — $ — $ 26,570 General partner’s IDRs 5,600 — — — 5,600 DERs — — — 5 5 Distributions and DERs declared 6,244 25,926 — 5 32,175 Undistributed earnings 390 15,533 3,607 4 19,534 Net income available to $ 6,634 $ 41,459 $ 3,607 $ 9 $ 51,709 Net income per limited partner unit – basic and diluted: Weighted-average units outstanding 53,899 12,517 Net income per limited partner unit – basic and diluted $ 0.77 $ 0.29 Nine Months Ended September 30, 2017 General Limited Partners Common Units Restricted Total Allocation of net income to determine net income available to limited partners: Distributions, excluding general partner’s IDRs $ 2,362 $ 93,388 $ — $ 95,750 General partner’s IDRs 30,631 — — 30,631 DERs — — 15 15 Distributions and DERs declared 32,993 93,388 15 126,396 Undistributed earnings 930 46,834 9 47,773 Net income available to limited partners – basic and diluted $ 33,923 $ 140,222 $ 24 $ 174,169 Net income per limited partner unit – basic and diluted: Weighted-average units outstanding 67,997 Net income per limited partner unit – basic and diluted $ 2.06 Nine Months Ended September 30, 2016 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 $ 1,734 $ 52,187 $ 20,297 $ — $ 74,218 General partner’s IDRs 12,462 — — — 12,462 DERs — — — 15 15 Distributions and DERs declared 14,196 52,187 20,297 15 86,695 Undistributed earnings 1,155 36,568 20,025 11 57,759 Net income available to limited partners – basic and diluted $ 15,351 $ 88,755 $ 40,322 $ 26 $ 144,454 Net income per limited partner unit – basic and diluted: Weighted-average units outstanding 42,597 23,326 Net income per limited partner unit – basic and diluted $ 2.08 $ 1.73

Partners' Capital (Tables)

Partners' Capital (Tables)	9 Months Ended
	Sep. 30, 2017
Partners' Capital Notes [Abstract]
Activity in the number of units	Activity in the number of units was as follows: Common General Partner Public Valero Subordinated Total 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 Units issued in connection with acquisitions (see Note 2) — 1,878,680 — 38,340 1,917,020 Conversion of subordinated units — 28,789,989 (28,789,989 ) — — Units issued under ATM Program 65,980 — — — 65,980 General partner units issued to maintain 2% interest — — — 1,346 1,346 Balance as of September 30, 2016 21,581,589 45,687,271 — 1,372,515 68,641,375 Balance as of December 31, 2016 21,738,692 45,687,271 — 1,375,721 68,801,684 Unit-based compensation 5,997 — — — 5,997 Units issued under ATM Program 742,897 — — — 742,897 General partner units issued to maintain 2% interest — — — 15,602 15,602 Balance as of September 30, 2017 22,487,586 45,687,271 — 1,391,323 69,566,180
Schedule of common units issued under ATM Program	The table below summarizes activities of the common units issued under our ATM Program and general partner units issued to maintain the 2.0 percent general partner interest in the Partnership. Units Issued Total Proceeds Offering Costs Net Proceeds (in thousands) Nine months ended September 30, 2017: Common – public 742,897 $ 35,728 $ 542 $ 35,186 General partner 15,602 748 — 748 Nine months ended September 30, 2016: Common – public 65,980 2,853 39 2,814 General partner 1,346 58 — 58

Supplemental Cash Flow Inform26

Supplemental Cash Flow Information (Tables)	9 Months Ended
	Sep. 30, 2017
Supplemental Cash Flow Information [Abstract]
Supplemental cash flow disclosures	The following table presents our investing and financing cash outflows in connection with the acquisitions from Valero described in Note 2 (in thousands). Of the cash consideration paid, the portion attributed to Valero’s historical carrying value of each acquisition was reflected as an investing cash outflow and the excess purchase price paid over the carrying value of each acquisition was reflected as a financing cash outflow. Investing Financing Total Nine months ended September 30, 2016: McKee Terminal Services Business $ 51,361 $ 152,639 $ 204,000 Meraux and Three Rivers Terminal Services Business 52,246 223,754 276,000 $ 103,607 $ 376,393 $ 480,000 Cash flows related to interest and income taxes paid were as follows (in thousands): Nine Months Ended 2017 2016 Interest paid $ 19,136 $ 8,688 Income taxes paid 695 496 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): Nine Months Ended 2017 2016 Decrease (increase) in current assets: Receivables – related party $ 894 $ (7,668 ) Receivables (225 ) — Prepaid expenses and other 512 223 Increase (decrease) in current liabilities: Accounts payable 1,361 791 Accounts payable – related party 1,433 (558 ) Accrued liabilities (283 ) (212 ) Accrued liabilities – related party (99 ) (66 ) Accrued interest payable 5,173 565 Accrued interest payable – related party 797 71 Taxes other than income taxes payable 1,518 1,000 Deferred revenue – related party (3,093 ) 3,675 Changes in current assets and current liabilities $ 7,988 $ (2,179 )
Supplemental cash flow disclosures, noncash activities	Noncash investing and financing activities that affected recognized assets or liabilities for the nine months ended September 30, 2017 and 2016 were as follows (in thousands): Nine Months Ended 2017 2016 Transfer (from) to Valero for: Deferred income taxes $ — $ (190 ) Change in accrued capital expenditures — 46 Increase (decrease) in accounts payable related to capital expenditures 2,424 (2,499 ) Noncash capital contributions from Valero 27,866 23,820 Units issued to Valero in connection with the acquisitions (see Note 2) — 85,000
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 (in thousands) for the nine months ended September 30, 2016 . Nine Months Ended September 30, 2016 Net transfers from Valero per statement of partners’ capital $ 15,030 Less: Noncash transfers from Valero 144 Net transfers from Valero per statement of cash flows $ 14,886

Fair Value of Financial Instr27

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2017
Fair Value Disclosures [Abstract]
Schedule of financial instruments recognized on balance sheet at carrying value	Financial instruments that we recognize in our balance sheets at their carrying amounts are shown in the table below along with their associated fair values (in thousands): September 30, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Financial assets: Cash and cash equivalents $ 115,755 $ 115,755 $ 71,491 $ 71,491 Financial liabilities: Debt: Revolver 30,000 30,000 30,000 30,000 Senior Notes 495,177 516,305 495,355 506,670 Notes payable – related party 370,000 370,000 370,000 370,000

Description of Business, Basi28

Description of Business, Basis of Presentation, and Significant Accounting Policies (Details)	9 Months Ended
	Sep. 30, 2017refinery
Related Party Transaction [Line Items]
Limited partnership formation date	Jul. 24, 2013
Majority Shareholder [Member]
Related Party Transaction [Line Items]
Number of Valero owned refineries	10

Acquisitions, Acquisitions Narr

Acquisitions, Acquisitions Narrative (Details) bbl / d in Thousands, bbl in Thousands, $ in Thousands	Nov. 01, 2017USD ($)bbl / dshares	Jan. 18, 2017USD ($)bbl / dpropertybbl	Sep. 01, 2016USD ($)subsidiaryshares	Apr. 01, 2016USD ($)subsidiaryshares	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)shares
Business Acquisition [Line Items]
Units issued in connection with acquisitions (shares) | shares						1,917,020
Aggregate value of units issued to Valero Energy Corporation in connection with acquisitions						$ 85,000
Proceeds from debt borrowings					$ 0	349,000
Red River Crude System [Member]
Business Acquisition [Line Items]
Cash payment for acquisition of crude system and terminal services business					71,793	$ 0
Red River Crude System [Member] | Pipelines and Related Assets [Member]
Business Acquisition [Line Items]
Date of asset acquisition		Jan. 18, 2017
Undivided ownership interest acquired (percent)		40.00%
Number of properties | property		2
Storage capacity (barrels) | bbl		150
Cash payment for acquisition of crude system and terminal services business		$ 71,800
Throughput capacity (barrels per day) | bbl / d		150
Red River Crude System [Member] | Pipelines and Related Assets [Member] | Joint Ownership Agreement (JOA) and Operating and Administrative Services Agreement with Plains [Member]
Business Acquisition [Line Items]
Duration of agreement		5 years
Duration of renewal option		5 years
Red River Crude System [Member] | Pipelines and Related Assets [Member] | Plains All American Pipeline L.P.’s (Plains) [Member] | Joint Ownership Agreement (JOA) and Operating and Administrative Services Agreement with Plains [Member]
Business Acquisition [Line Items]
Undivided ownership interest acquired (percent)		60.00%
Limited Partner [Member] | Common Unitholder Valero [Member]
Business Acquisition [Line Items]
Units issued in connection with acquisitions (shares) | shares						1,878,680
Aggregate value of units issued to Valero Energy Corporation in connection with acquisitions						$ 83,300
General Partner Valero [Member]
Business Acquisition [Line Items]
Units issued in connection with acquisitions (shares) | shares						38,340
Aggregate value of units issued to Valero Energy Corporation in connection with acquisitions						$ 1,700
Majority Shareholder [Member]
Business Acquisition [Line Items]
Cash consideration transferred to acquire businesses						480,000
Consideration transferred for acquisition, units issued					$ 0	85,000
Cash payment for acquisition of crude system and terminal services business						103,607
Majority Shareholder [Member] | McKee Terminal Services Business [Member]
Business Acquisition [Line Items]
Effective date of acquisition				Apr. 1, 2016
Value of consideration transferred for acquisition				$ 240,000
Cash consideration transferred to acquire businesses				204,000		204,000
Consideration transferred for acquisition, units issued				36,000
Payments to acquire business, cash on hand				$ 65,000
Number of subsidiaries acquired | subsidiary				1
Cash payment for acquisition of crude system and terminal services business						51,361
Majority Shareholder [Member] | McKee Terminal Services Business [Member] | Limited Partner [Member] | Common Unitholder Valero [Member]
Business Acquisition [Line Items]
Units issued in connection with acquisitions (shares) | shares				728,775
Majority Shareholder [Member] | McKee Terminal Services Business [Member] | General Partner Valero [Member]
Business Acquisition [Line Items]
Units issued in connection with acquisitions (shares) | shares				14,873
Majority Shareholder [Member] | Meraux and Three Rivers Terminal Services Business [Member]
Business Acquisition [Line Items]
Effective date of acquisition			Sep. 1, 2016
Value of consideration transferred for acquisition			$ 325,000
Cash consideration transferred to acquire businesses			276,000			276,000
Consideration transferred for acquisition, units issued			49,000
Payments to acquire business, cash on hand			$ 66,000
Number of subsidiaries acquired | subsidiary			2
Cash payment for acquisition of crude system and terminal services business						52,246
Majority Shareholder [Member] | Meraux and Three Rivers Terminal Services Business [Member] | Limited Partner [Member] | Common Unitholder Valero [Member]
Business Acquisition [Line Items]
Units issued in connection with acquisitions (shares) | shares			1,149,905
Majority Shareholder [Member] | Meraux and Three Rivers Terminal Services Business [Member] | General Partner Valero [Member]
Business Acquisition [Line Items]
Units issued in connection with acquisitions (shares) | shares			23,467
Subsequent Event [Member] | Majority Shareholder [Member] | Parkway Pipeline [Member]
Business Acquisition [Line Items]
Date of asset acquisition	Nov. 1, 2017
Cash payment for acquisition of crude system and terminal services business	$ 82,000
Subsequent Event [Member] | Majority Shareholder [Member] | Parkway Pipeline [Member] | Pipelines and Related Assets [Member]
Business Acquisition [Line Items]
Consideration paid	$ 200,000
Throughput capacity (barrels per day) | bbl / d	110
Subsequent Event [Member] | Majority Shareholder [Member] | Port Arthur Terminal [Member] | Pipelines and Related Assets [Member]
Business Acquisition [Line Items]
Aggregate value of units issued to Valero Energy Corporation in connection with acquisitions	$ 46,000
Cash payment for acquisition of crude system and terminal services business	262,000
Consideration paid	$ 308,000
Subsequent Event [Member] | Majority Shareholder [Member] | Limited Partner [Member] | Port Arthur Terminal [Member] | Pipelines and Related Assets [Member]
Business Acquisition [Line Items]
Units issued in connection with acquisitions (shares) | shares	1,081,315
Subsequent Event [Member] | Majority Shareholder [Member] | General Partner Valero [Member] | Port Arthur Terminal [Member] | Pipelines and Related Assets [Member]
Business Acquisition [Line Items]
Units issued in connection with acquisitions (shares) | shares	22,068
Revolving Credit Facility [Member] | McKee Terminal Services Business [Member]
Business Acquisition [Line Items]
Proceeds from debt borrowings				$ 139,000		$ 139,000
Revolving Credit Facility [Member] | Meraux and Three Rivers Terminal Services Business [Member]
Business Acquisition [Line Items]
Proceeds from debt borrowings			$ 210,000
Revolving Credit Facility [Member] | Subsequent Event [Member] | Parkway Pipeline [Member]
Business Acquisition [Line Items]
Proceeds from debt borrowings	$ 118,000
Revolving Credit Facility [Member] | Subsequent Event [Member] | Port Arthur Terminal [Member]
Business Acquisition [Line Items]
Proceeds from debt borrowings	$ 262,000

Related-Party Transactions, Agr

Related-Party Transactions, Agreements (Details) bbl in Thousands, $ in Millions	Mar. 31, 2017bbl	Jan. 18, 2017renewalbbl	Sep. 30, 2017USD ($)
Red River Crude System [Member] | Pipelines [Member]
Related Party Agreements and Transactions (Textual)
Volume of storage tank (barrels)		150
Agreement with Diamond Green Diesel [Member]
Related Party Agreements and Transactions (Textual)
Volume of storage tank (barrels)	180
Agreement expiration date, initial term	Jun. 30, 2033
Agreements With Valero [Member] | Red River Crude System [Member] | Pipelines [Member]
Related Party Agreements and Transactions (Textual)
Duration of agreement		10 years
Number of renewal options | renewal		1
Duration of renewal option		5 years
Prior written notice		180 days
Majority Shareholder [Member]
Related Party Agreements and Transactions (Textual)
Receivable from Valero | $			$ 2.3

Related-Party Transactions, Lea

Related-Party Transactions, Leases (Details) - Majority Shareholder [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Operating Leases, Lease Revenue
Minimum rental revenues	$ 70,588	$ 60,133	$ 208,859	$ 164,659
Contingent rental revenues	15,223	10,710	42,721	28,271
Total lease revenues	85,811	$ 70,843	251,580	$ 192,930
Future Minimum Rentals to be Received on Noncancelable Lease Agreements
Remainder of 2017	70,589		70,589
2,018	280,056		280,056
2,019	280,056		280,056
2,020	280,824		280,824
2,021	280,056		280,056
Thereafter	2,394,350		2,394,350
Total minimum rental payments	$ 3,585,931		$ 3,585,931

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Non-Leased Assets
Property and equipment excluding assets subject to operating lease, at cost	$ 410,841	$ 375,157
Accumulated depreciation, property and equipment excluding assets subject to operating lease	(123,924)	(115,538)
Property and equipment excluding assets subject to operating lease, net	286,917	259,619
Assets Leased to Valero
Assets under operating leases, at cost	930,065	841,131
Accumulated depreciation, assets under operating leases	(262,035)	(235,670)
Assets under operating leases, net	668,030	605,461
Property and Equipment, Total
Property and equipment, at cost	1,340,906	1,216,288
Accumulated depreciation	(385,959)	(351,208)
Property and equipment, net	954,947	865,080
Land [Member]
Non-Leased Assets
Property and equipment excluding assets subject to operating lease, at cost	4,672	4,672
Assets Leased to Valero
Assets under operating leases, at cost	0	0
Property and Equipment, Total
Property and equipment, at cost	4,672	4,672
Pipelines and Related Assets [Member]
Non-Leased Assets
Property and equipment excluding assets subject to operating lease, at cost	224,794	224,656
Assets Leased to Valero
Assets under operating leases, at cost	113,381	47,366
Property and Equipment, Total
Property and equipment, at cost	338,175	272,022
Terminals and Related Assets [Member]
Non-Leased Assets
Property and equipment excluding assets subject to operating lease, at cost	120,482	112,614
Assets Leased to Valero
Assets under operating leases, at cost	816,684	793,765
Property and Equipment, Total
Property and equipment, at cost	937,166	906,379
Other [Member]
Non-Leased Assets
Property and equipment excluding assets subject to operating lease, at cost	10,530	9,538
Assets Leased to Valero
Assets under operating leases, at cost	0	0
Property and Equipment, Total
Property and equipment, at cost	10,530	9,538
Construction-in-Progress [Member]
Non-Leased Assets
Property and equipment excluding assets subject to operating lease, at cost	50,363	23,677
Assets Leased to Valero
Assets under operating leases, at cost	0	0
Property and Equipment, Total
Property and equipment, at cost	$ 50,363	$ 23,677

Debt and Notes Payable - Rela33

Debt and Notes Payable - Related Party, Debt (Details) - USD ($)	Nov. 01, 2017	Sep. 01, 2016	Apr. 01, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Revolving Credit Facility (Textual)
Proceeds from debt borrowings				$ 0	$ 349,000,000
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
Line of credit facility, higher borrowing capacity option				$ 1,000,000,000
Line of credit facility, interest rate at period end (percent)				2.75%		2.3125%
Letter of Credit [Member]
Revolving Credit Facility (Textual)
Line of credit facility, maximum borrowing capacity				$ 100,000,000
McKee Terminal Services Business [Member] | Revolving Credit Facility [Member]
Revolving Credit Facility (Textual)
Proceeds from debt borrowings			$ 139,000,000		$ 139,000,000
Meraux and Three Rivers Terminal Services Business [Member] | Revolving Credit Facility [Member]
Revolving Credit Facility (Textual)
Proceeds from debt borrowings		$ 210,000,000
Port Arthur Terminal [Member] | Subsequent Event [Member] | Revolving Credit Facility [Member]
Revolving Credit Facility (Textual)
Line of credit facility, interest rate at period end (percent)	2.875%
Proceeds from debt borrowings	$ 262,000,000
Parkway Pipeline [Member] | Subsequent Event [Member] | Revolving Credit Facility [Member]
Revolving Credit Facility (Textual)
Line of credit facility, interest rate at period end (percent)	2.75%
Proceeds from debt borrowings	$ 118,000,000

Debt and Notes Payable - Rela34

Debt and Notes Payable - Related Party, Notes Payable - Related Party (Details) - Agreements With Valero [Member] - Subordinated Debt [Member] - Majority Shareholder [Member] - loan_agreement	Sep. 30, 2017	Dec. 31, 2016
Subordinated Credit Agreement (Textual)
Number of subordinated credit agreements entered	2
Subordinated credit agreements, rate at period end (percent)	2.73722%	2.27%

Operating Leases (Details)

Operating Leases (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Future Minimum Rentals on Operating Leases
Remainder of 2017	$ 2,662		$ 2,662
2,018	10,812		10,812
2,019	10,796		10,796
2,020	10,797		10,797
2,021	10,792		10,792
Thereafter	245,255		245,255
Total minimum rental payments	291,114		291,114
Total minimum rental expenses	2,741	$ 2,456	8,219	$ 7,059
Related Party [Member]
Future Minimum Rentals on Operating Leases
Remainder of 2017	2,436		2,436
2,018	9,744		9,744
2,019	9,744		9,744
2,020	9,745		9,745
2,021	9,745		9,745
Thereafter	219,893		219,893
Total minimum rental payments	261,307		261,307
Total minimum rental expenses	2,437	2,281	7,310	6,518
Others [Member]
Future Minimum Rentals on Operating Leases
Remainder of 2017	226		226
2,018	1,068		1,068
2,019	1,052		1,052
2,020	1,052		1,052
2,021	1,047		1,047
Thereafter	25,362		25,362
Total minimum rental payments	29,807		29,807
Total minimum rental expenses	$ 304	$ 175	$ 909	$ 541

Cash Distributions (Details)

Cash Distributions (Details) - USD ($) $ / shares in Units, $ in Thousands	Oct. 19, 2017	Aug. 10, 2017	May 11, 2017	Feb. 10, 2017	Nov. 10, 2016	Aug. 09, 2016	May 10, 2016	Feb. 11, 2016	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Quarterly Cash Distributions
Total quarterly distribution (dollars per share)		$ 0.4550	$ 0.4275	$ 0.4065	$ 0.3850	$ 0.3650	$ 0.3400	$ 0.3200	$ 0.4800	$ 0.3850	$ 1.3625	$ 1.0900
Distributions		$ 42,111	$ 38,043	$ 34,895	$ 32,175	$ 28,912	$ 25,608	$ 22,711	$ 46,242	$ 32,175	$ 126,396	$ 86,695
General Partner’s Distribution, Including Incentive Distribution Rights [Member]
Quarterly Cash Distributions
Distributions									12,999	6,244	32,993	14,196
General Partner Valero [Member]
Quarterly Cash Distributions
Distributions									925	644	2,362	1,734
General Partner IDRs [Member]
Quarterly Cash Distributions
Distributions									12,074	5,600	30,631	12,462
Limited Partner, Common and Subordinated Units [Member]
Quarterly Cash Distributions
Distributions									33,238	25,926	93,388	72,484
Common Unitholders Public [Member]
Quarterly Cash Distributions
Distributions									10,789	8,336	30,620	23,495
Common Unitholder Valero [Member]
Quarterly Cash Distributions
Distributions									22,449	17,590	62,768	28,692
Subordinated Unitholder Valero [Member]
Quarterly Cash Distributions
Distributions									0	0	0	20,297
Distribution Equivalent Rights [Member]
Quarterly Cash Distributions
Distributions									$ 5	$ 5	$ 15	$ 15
Subsequent Event [Member]
Quarterly Cash Distributions
Total quarterly distribution (dollars per share)	$ 0.48
Distributions	$ 46,242

Net Income Per Limited Partne37

Net Income Per Limited Partner Unit (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Allocation of net income to determine net income available to limited partners:
Distributions, excluding general partner's IDRs	$ 34,163	$ 26,570	$ 95,750	$ 74,218
General partner’s IDRs	12,074	5,600	30,631	12,462
DERs	5	5	15	15
Distributions and DERs declared	46,242	32,175	126,396	86,695
Undistributed earnings	11,347	19,534	47,773	57,759
Net income available to limited partners – basic and diluted	$ 57,589	$ 51,709	$ 174,169	$ 144,454
Net income per limited partner unit – basic and diluted:
Weighted-average units outstanding (shares)	68,163	53,899	67,997	42,597
Net income per limited partner unit – basic and diluted (in dollars per share)	$ 0.65	$ 0.77	$ 2.06	$ 2.08
General Partner Valero [Member]
Allocation of net income to determine net income available to limited partners:
Distributions, excluding general partner's IDRs	$ 925	$ 644	$ 2,362	$ 1,734
General partner’s IDRs	12,074	5,600	30,631	12,462
Distributions and DERs declared	12,999	6,244	32,993	14,196
Undistributed earnings	38	390	930	1,155
Net income available to limited partners – basic and diluted	13,037	6,634	33,923	15,351
Limited Partner [Member] | Common Units [Member]
Allocation of net income to determine net income available to limited partners:
Distributions, excluding general partner's IDRs	33,238	25,926	93,388	52,187
Distributions and DERs declared	33,238	25,926	93,388	52,187
Undistributed earnings	11,307	15,533	46,834	36,568
Net income available to limited partners – basic and diluted	$ 44,545	$ 41,459	$ 140,222	$ 88,755
Net income per limited partner unit – basic and diluted:
Weighted-average units outstanding (shares)	68,163	53,899	67,997	42,597
Net income per limited partner unit – basic and diluted (in dollars per share)	$ 0.65	$ 0.77	$ 2.06	$ 2.08
Limited Partner [Member] | Subordinated Units [Member]
Allocation of net income to determine net income available to limited partners:
Distributions, excluding general partner's IDRs				$ 20,297
Distributions and DERs declared		$ 0		20,297
Undistributed earnings		3,607		20,025
Net income available to limited partners – basic and diluted		$ 3,607		$ 40,322
Net income per limited partner unit – basic and diluted:
Weighted-average units outstanding (shares)		12,517		23,326
Net income per limited partner unit – basic and diluted (in dollars per share)		$ 0.29		$ 1.73
Restricted Units [Member]
Allocation of net income to determine net income available to limited partners:
DERs	$ 5	$ 5	$ 15	$ 15
Distributions and DERs declared	5	5	15	15
Undistributed earnings	2	4	9	11
Net income available to limited partners – basic and diluted	$ 7	$ 9	$ 24	$ 26

Partners' Capital Partners' Cap

Partners' Capital Partners' Capital, Unit Activity (Details) - shares	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Partners' Capital Roll Forward (Units)
Beginning balance (shares)	68,801,684	66,651,071
Unit-based compensation (shares)	5,997	5,958
Units issued in connection with acquisitions (shares)		1,917,020
Public offering of common units (shares)	742,897	65,980
General partner units issued (shares)	15,602	1,346
Ending balance (shares)	69,566,180	68,641,375
Limited Partner [Member] | Common Unitholders Public [Member]
Partners' Capital Roll Forward (Units)
Beginning balance (shares)	21,738,692	21,509,651
Unit-based compensation (shares)	5,997	5,958
Public offering of common units (shares)	742,897	65,980
Ending balance (shares)	22,487,586	21,581,589
Limited Partner [Member] | Common Unitholder Valero [Member]
Partners' Capital Roll Forward (Units)
Beginning balance (shares)	45,687,271	15,018,602
Units issued in connection with acquisitions (shares)		1,878,680
Conversion of subordinated units (shares)		28,789,989
Ending balance (shares)	45,687,271	45,687,271
Limited Partner [Member] | Subordinated Unitholder Valero [Member]
Partners' Capital Roll Forward (Units)
Beginning balance (shares)	0	28,789,989
Conversion of subordinated units (shares)		(28,789,989)
Ending balance (shares)	0	0
General Partner Valero [Member]
Partners' Capital Roll Forward (Units)
Beginning balance (shares)	1,375,721	1,332,829
Units issued in connection with acquisitions (shares)		38,340
General partner units issued (shares)	15,602	1,346
Ending balance (shares)	1,391,323	1,372,515

Partners' Capital (Details)

Partners' Capital (Details) $ in Thousands	Aug. 10, 2016	Sep. 30, 2017USD ($)shares	Sep. 30, 2016USD ($)shares	Sep. 16, 2016USD ($)
Partners’ capital:
Public offering of common units (shares) | shares		742,897	65,980
Proceeds from common units issued, gross		$ 34,177	$ 6,154
Common units offering costs		$ 542	$ 412
General partner units issued (shares) | shares		15,602	1,346
Proceeds from general partner units issued		$ 748	$ 58
Subordinated units conversion to common units, ratio	1
Majority Shareholder [Member]
Partners’ capital:
General partner ownership interest (percent)		2.00%
Limited Partner [Member] | Common Unitholders Public [Member]
Partners’ capital:
Public offering of common units (shares) | shares		742,897	65,980
Proceeds from common units issued, gross		$ 33,429	$ 6,096
General Partner Valero [Member]
Partners’ capital:
Proceeds from common units issued, gross		$ 748	$ 58
General partner units issued (shares) | shares		15,602	1,346
Public Offering [Member]
Partners’ capital:
Aggregate offering price of common units				$ 350,000
Public Offering [Member] | Limited Partner [Member] | Common Unitholders Public [Member]
Partners’ capital:
Public offering of common units (shares) | shares		742,897	65,980
Proceeds from common units issued, gross		$ 35,728	$ 2,853
Common units offering costs		542	39
Proceeds from common units issued, net		35,186	2,814
General Partner Valero [Member]
Partners’ capital:
Proceeds from general partner units issued		$ 748	$ 58
General Partner Valero [Member] | General Partner Valero [Member]
Partners’ capital:
General partner units issued (shares) | shares		15,602	1,346

Supplemental Cash Flow Inform40

Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	Sep. 01, 2016	Apr. 01, 2016	Sep. 30, 2017	Sep. 30, 2016
Decrease (increase) in current assets:
Receivables – related party			$ 894	$ (7,668)
Receivables			(225)	0
Prepaid expenses and other			512	223
Increase (decrease) in current liabilities:
Accounts payable			1,361	791
Accounts payable – related party			1,433	(558)
Accrued liabilities			(283)	(212)
Accrued liabilities – related party			(99)	(66)
Accrued interest payable			5,173	565
Accrued interest payable – related party			797	71
Taxes other than income taxes payable			1,518	1,000
Deferred revenue – related party			(3,093)	3,675
Changes in current assets and current liabilities			7,988	(2,179)
Other Noncash Activities
Increase (decrease) in accounts payable related to capital expenditures			2,424	(2,499)
Noncash capital contributions from Valero			27,866	23,820
Conversion of subordinated units				0
Supplemental Cash Flow Elements [Abstract]
Financing cash outflow			0	376,393
Reconciliation of Net Transfers from/to Valero
Net transfers from Valero per statement of cash flows			0	14,886
Cash Flows Related to Interest Paid
Interest paid			19,136	8,688
Income taxes paid			695	496
Majority Shareholder [Member]
Other Noncash Activities
Transfer from Valero for deferred income taxes				(144)
Noncash capital contributions from Valero			27,866	23,820
Units issued to Valero Energy Corporation in connection with the acquisitions			0	85,000
Supplemental Cash Flow Elements [Abstract]
Investing cash outflow				103,607
Financing cash outflow				376,393
Total cash outflow				480,000
Reconciliation of Net Transfers from/to Valero
Net transfers from Valero per statement of partners’ capital				15,030
Less: Noncash transfers from Valero				144
Net transfers from Valero per statement of cash flows				14,886
Majority Shareholder [Member] | McKee Terminal Services Business [Member]
Other Noncash Activities
Units issued to Valero Energy Corporation in connection with the acquisitions		$ 36,000
Supplemental Cash Flow Elements [Abstract]
Investing cash outflow				51,361
Financing cash outflow				152,639
Total cash outflow		$ 204,000		204,000
Majority Shareholder [Member] | Meraux and Three Rivers Terminal Services Business [Member]
Other Noncash Activities
Units issued to Valero Energy Corporation in connection with the acquisitions	$ 49,000
Supplemental Cash Flow Elements [Abstract]
Investing cash outflow				52,246
Financing cash outflow				223,754
Total cash outflow	$ 276,000			276,000
Majority Shareholder [Member] | Deferred Income Taxes [Member]
Other Noncash Activities
Transfer from Valero for deferred income taxes			0	(190)
Reconciliation of Net Transfers from/to Valero
Less: Noncash transfers from Valero			0	190
Majority Shareholder [Member] | Construction-in-Progress [Member]
Other Noncash Activities
Transfer to Valero for change in accrued capital expenditures			0	46
Limited Partner [Member] | Subordinated Units [Member]
Other Noncash Activities
Noncash capital contributions from Valero			$ 0	12,084
Conversion of subordinated units				$ 406,374

Fair Value of Financial Instr41

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents, at carrying value	$ 115,755	$ 71,491	$ 35,399	$ 80,783
Notes payable – related party, at carrying amount	370,000	370,000
Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt, at carrying amount	$ 495,177	495,355
Senior Notes [Member] | Senior Notes Due in 2026 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument stated rate (percent)	4.375%
Revolving Credit Facility [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt, at carrying amount	$ 30,000	30,000
Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents, at fair value	115,755	71,491
Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable – related party, at fair value	370,000	370,000
Level 2 [Member] | Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt, at fair value	516,305	506,670
Level 2 [Member] | Revolving Credit Facility [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt, at fair value	$ 30,000	$ 30,000