Cypress Environmental Partners (CELPQ) 10-Q 12 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Nov. 05, 2019
Document And Entity Information [Abstract]
Entity Registrant Name	Cypress Energy Partners, L.P.
Entity Central Index Key	0001587246
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity File Number	001-36260
Entity Incorporation, State or Country Code	DE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		12,067,482
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2019

Unaudited Condensed Consolidate

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 12,735	$ 15,380
Trade accounts receivable, net	69,672	48,789
Prepaid expenses and other	958	1,396
Total current assets	83,365	65,565
Property and equipment:
Property and equipment, at cost	25,394	23,988
Less: Accumulated depreciation	13,134	11,266
Total property and equipment, net	12,260	12,722
Intangible assets, net	20,737	22,759
Goodwill	50,334	50,294
Finance lease right-of-use assets, net	596
Operating lease right-of-use assets	3,068
Debt issuance costs, net	869	1,260
Other assets	513	253
Total assets	171,742	152,853
Current liabilities:
Accounts payable	7,191	4,848
Accounts payable - affiliates	4,429	4,060
Accrued payroll and other	17,996	12,276
Income taxes payable	902	737
Finance lease obligations	167	90
Operating lease obligations	453
Total current liabilities	31,138	22,011
Long-term debt	80,929	76,129
Finance lease obligations	366	248
Operating lease obligations	2,551
Other noncurrent liabilities	205	178
Total liabilities	115,189	98,566
Commitments and contingencies - Note 7
Partners' capital:
Common units (12,065 and 11,947 units outstanding at September 30, 2019 and December 31, 2018, respectively)	36,352	34,677
Preferred units (5,769 units outstanding at September 30, 2019 and December 31, 2018)	44,291	44,291
General partner	(25,876)	(25,876)
Accumulated other comprehensive loss	(2,515)	(2,414)
Total partners' capital	52,252	50,678
Noncontrolling interests	4,301	3,609
Total owners' equity	56,553	54,287
Total liabilities and owners' equity	$ 171,742	$ 152,853

Unaudited Condensed Consolida_2

Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - shares shares in Thousands	Sep. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Common units outstanding (in shares)	12,065	11,947
Preferred units outstanding (in shares)	5,769	5,769

Unaudited Condensed Consolida_3

Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Statement [Abstract]
Revenue	$ 108,934	$ 84,778	$ 310,401	$ 226,072
Costs of services	93,533	71,870	270,170	194,092
Gross margin	15,401	12,908	40,231	31,980
Operating costs and expense:
General and administrative	6,557	6,064	18,946	17,341
Depreciation, amortization and accretion	1,116	1,124	3,329	3,368
Gain on asset disposals, net		(822)	(23)	(4,137)
Operating income	7,728	6,542	17,979	15,408
Other (expense) income:
Interest expense, net	(1,376)	(1,283)	(4,102)	(4,907)
Debt issuance cost write-off				(114)
Foreign currency (losses) gains	(47)	97	138	(354)
Other, net	82	95	220	302
Net income before income tax expense	6,387	5,451	14,235	10,335
Income tax expense	907	497	1,731	865
Net income	5,480	4,954	12,504	9,470
Net income attributable to noncontrolling interests	634	289	692	673
Net income attributable to partners / controlling interests	4,846	4,665	11,812	8,797
Net income attributable to preferred unitholder	1,033	1,045	3,099	1,412
Net income attributable to common unitholders	$ 3,813	$ 3,620	$ 8,713	$ 7,385
Net income per common limited partner unit:
Basic (in dollars per share)	$ 0.32	$ 0.30	$ 0.72	$ 0.62
Diluted (in dollars per share)	$ 0.26	$ 0.26	$ 0.65	$ 0.59
Weighted average common units outstanding:
Basic (in units)	12,065	11,940	12,030	11,924
Diluted (in units)	18,350	18,141	18,207	14,970

Unaudited Condensed Consolida_4

Unaudited Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 5,480	$ 4,954	$ 12,504	$ 9,470
Other comprehensive income (loss) - foreign currency translation	34	(71)	(101)	61
Comprehensive income	5,514	4,883	12,403	9,531
Comprehensive income attributable to preferred unitholders	1,033	1,045	3,099	1,412
Comprehensive income attributable to noncontrolling interests	634	289	692	673
Comprehensive income attributable to common unitholders	$ 3,847	$ 3,549	$ 8,612	$ 7,446

Unaudited Condensed Consolida_5

Unaudited Condensed Consolidated Statements of Owners' Equity - USD ($) $ in Thousands	Common Units [Member]	Preferred Units [Member]	Accumulated Other Comprehensive Loss [Member]	Noncontrolling Interests [Member]	General Partner [Member]	Total
Owners' equity, beginning at Dec. 31, 2017	$ 34,614		$ (2,677)	$ 3,924	$ (25,876)	$ 9,985
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	725			235		960
Foreign currency translation adjustment			102			102
Distributions	(2,498)			(6)		(2,504)
Equity-based compensation	212					212
Taxes paid related to net share settlement of equity-based compensation	(69)					(69)
Owners' equity, ending at Mar. 31, 2018	32,984		(2,575)	4,153	(25,876)	8,686
Owners' equity, beginning at Dec. 31, 2017	34,614		(2,677)	3,924	(25,876)	9,985
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)						9,470
Foreign currency translation adjustment						61
Owners' equity, ending at Sep. 30, 2018	35,266	$ 44,671	(2,616)	3,606	(25,876)	55,051
Owners' equity, beginning at Mar. 31, 2018	32,984		(2,575)	4,153	(25,876)	8,686
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	3,040	367		149		3,556
Issuance of preferred units, net		43,269				43,269
Foreign currency translation adjustment			30			30
Distributions	(2,506)					(2,506)
Equity-based compensation	335					335
Taxes paid related to net share settlement of equity-based compensation	(1)					(1)
Owners' equity, ending at Jun. 30, 2018	33,852	43,636	(2,545)	4,302	(25,876)	53,369
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	3,620	1,045		289		4,954
Issuance of preferred units, net		(10)				(10)
Foreign currency translation adjustment			(71)			(71)
Distributions	(2,506)			985		(3,491)
Equity-based compensation	361					361
Taxes paid related to net share settlement of equity-based compensation	(61)					(61)
Owners' equity, ending at Sep. 30, 2018	35,266	44,671	(2,616)	3,606	(25,876)	55,051
Owners' equity, beginning at Dec. 31, 2018	34,677	44,291	(2,414)	3,609	(25,876)	54,287
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	567	1,033		(219)		1,381
Foreign currency translation adjustment			(72)			(72)
Distributions	(2,510)	(1,033)				(3,543)
Equity-based compensation	269					269
Taxes paid related to net share settlement of equity-based compensation	(158)					(158)
Owners' equity, ending at Mar. 31, 2019	32,845	44,291	(2,486)	3,390	(25,876)	52,164
Owners' equity, beginning at Dec. 31, 2018	34,677	44,291	(2,414)	3,609	(25,876)	54,287
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)						12,504
Foreign currency translation adjustment						(101)
Owners' equity, ending at Sep. 30, 2019	36,352	44,291	(2,515)	4,301	(25,876)	56,553
Owners' equity, beginning at Mar. 31, 2019	32,845	44,291	(2,486)	3,390	(25,876)	52,164
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	4,333	1,033		277		5,643
Foreign currency translation adjustment			(63)			(63)
Distributions	(2,531)	(1,033)				(3,564)
Equity-based compensation	174					174
Taxes paid related to net share settlement of equity-based compensation	(1)					(1)
Owners' equity, ending at Jun. 30, 2019	34,820	44,291	(2,549)	3,667	(25,876)	54,353
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	3,813	1,033		634		5,480
Foreign currency translation adjustment			34			34
Distributions	(2,534)	(1,033)				(3,567)
Equity-based compensation	303					303
Taxes paid related to net share settlement of equity-based compensation	(50)					(50)
Owners' equity, ending at Sep. 30, 2019	$ 36,352	$ 44,291	$ (2,515)	$ 4,301	$ (25,876)	$ 56,553

Unaudited Condensed Consolida_6

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Operating activities:
Net income	$ 12,504	$ 9,470
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion	4,153	4,186
Gain on asset disposals, net	(23)	(4,137)
Interest expense from debt issuance cost amortization	391	429
Debt issuance cost write-off		114
Equity-based compensation expense	746	908
Equity in earnings of investee	(84)	(169)
Distributions from investee	75	113
Foreign currency (gains) losses, net	(138)	354
Changes in assets and liabilities:
Trade accounts receivable	(20,879)	(9,395)
Prepaid expenses and other	121	891
Accounts payable and accounts payable - affiliates	2,288	(1,117)
Accrued payroll and other	5,735	5,246
Income taxes payable	166	62
Net cash provided by operating activities	5,055	6,955
Investing activities:
Proceeds from fixed asset disposals	39	12,762
Purchases of property and equipment	(1,518)	(5,466)
Net cash (used in) provided by investing activities	(1,479)	7,296
Financing activities:
Issuance of preferred units, net of issuance costs		43,259
Borrowings on credit facility	7,800
Repayments of credit facility and long-term debt	(3,000)	(60,771)
Repayments on finance lease obligations	(139)	(8)
Debt issuance cost payments		(1,327)
Taxes paid related to net share settlement of equity-based compensation	(209)	(131)
Distributions	(10,674)	(8,501)
Net cash used in financing activities	(6,222)	(27,479)
Effect of exchange rates on cash	1	11
Net decrease in cash and cash equivalents and restricted cash equivalents	(2,645)	(13,217)
Cash and cash equivalents (including restricted cash equivalents of $551 at December 31, 2018 and $490 at December 31, 2017), beginning of period	15,931	24,998
Cash and cash equivalents (including restricted cash equivalents of $551 at September 30, 2019 and September 30, 2018), end of period	13,286	11,781
Non-cash items:
Accounts payable excluded from capital expenditures	453	75
Acquisitions of finance leases included in liabilities	$ 338	$ 335

Unaudited Condensed Consolida_7

Unaudited Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017
Statement of Cash Flows [Abstract]
Restricted cash equivalents	$ 551	$ 551	$ 551	$ 490

Organization and Operations

Organization and Operations	9 Months Ended
	Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Operations	1. Organization and Operations Cypress Energy Partners, L.P. (“we”, “us”, “our”, or the “Partnership”) is a Delaware limited partnership formed in 2013. We offer essential services that help protect the environment and ensure sustainability. We provide a wide range of environmental services including independent inspection, integrity, and support services for pipeline and energy infrastructure owners and operators and public utilities. We also provide water pipelines, hydrocarbon recovery, disposal, and water treatment services. Trading of our common units began January 15, 2014 on the New York Stock Exchange under the symbol “CELP”. Our business is organized into the Pipeline Inspection Services (“Pipeline Inspection”), Pipeline & Process Services (“Pipeline & Process Services”), and Water and Environmental Services (“Environmental Services”) segments. The Pipeline Inspection segment generates revenue primarily by providing essential environmental services including inspection and integrity services on a variety of infrastructure assets including midstream pipelines, gathering systems, and distribution systems. Services include non-destructive examination, in-line inspection support, pig tracking, survey, data gathering, and supervision of third-party contractors. Our results in this segment are driven primarily by the number of inspectors that perform services for our customers and the fees that we charge for those services, which depend on the type, skills, technology, equipment, and number of inspectors used on a particular project, the nature of the project, and the duration of the project. The number of inspectors engaged on projects is driven by the type of project, prevailing market rates, the age and condition of customers’ assets including pipelines, gas plants, compression stations, storage facilities, and gathering and distribution systems including the legal and regulatory requirements relating to the inspection and maintenance of those assets. We also bill our customers for per diem charges, mileage, and other reimbursement items. Revenue and costs in this segment may be subject to seasonal variations and interim activity may not be indicative of yearly activity considering many of our customers develop yearly operating budgets and enter into contracts with us during the winter season for work to be performed during the remainder of the year. Additionally, inspection work throughout the United States during the winter months (especially in the northern states) may be hampered or delayed due to inclement weather. The Pipeline & Process Services segment (formerly our Integrity Services segment) generates revenue primarily by providing essential environmental services including hydrostatic testing services and chemical cleaning to energy companies and pipeline construction companies of newly-constructed and existing pipelines and related infrastructure. We generally charge our customers in this segment on a fixed-bid basis, depending on the size and length of the pipeline being tested, the complexity of services provided, and the utilization of our work force and equipment. Our results in this segment are driven primarily by the number of field personnel that perform services for our customers and the fees that we charge for those services, which depend on the type and number of field personnel used on a particular project, the type of equipment used and the fees charged for the utilization of that equipment, and the nature and duration of the project. The Environmental Services segment owns and operates nine (9) Environmental Protection Agency Class II saltwater disposal facilities in the Williston Basin region of North Dakota. Eight (8) of the facilities are wholly-owned and we have ten (10) pipelines from multiple E&P customers connected to these saltwater disposal facilities, including two (2) that we developed and own. Our saltwater disposal facilities provide essential environmental services to oil and natural gas upstream producers and their transportation companies. All of the saltwater disposal facilities utilize specialized equipment and remote monitoring to minimize the facilities’ downtime and increase the facilities’ efficiency for peak utilization. These facilities also utilize oil skimming and recovery processes that remove residual oil from water delivered to our saltwater disposal facilities via pipeline or truck. We sell the oil recovered from these skimming processes, which contributes to our revenues. In addition to these saltwater disposal facilities, we provide management and staffing services to a saltwater disposal facility in which we own a 25% ownership interest (see Note 6).

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	2. Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The Unaudited Condensed Consolidated Financial Statements as of September 30, 2019 and for the three and nine months ended September 30, 2019 and 2018 include our accounts and those of our controlled subsidiaries. Investments over which we exercise significant influence, but do not control, are accounted for using the equity method of accounting. All intercompany transactions and account balances have been eliminated in consolidation. The Unaudited Condensed Consolidated Balance Sheet at December 31, 2018 is derived from our audited financial statements. The accompanying Unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim consolidated financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”). The Unaudited Condensed Consolidated Financial Statements include all adjustments considered necessary for a fair presentation of the consolidated financial position and consolidated results of operations for the interim periods presented. Such adjustments consist only of normal recurring items, unless otherwise disclosed herein. Accordingly, the Unaudited Condensed Consolidated Financial Statements do not include all of the information and notes required by GAAP for complete consolidated financial statements. However, we believe that the disclosures made are adequate to make the information not misleading. These interim Unaudited Condensed Consolidated Financial Statements should be read in conjunction with our audited financial statements as of and for the year ended December 31, 2018 included in our Form 10-K. The results of operations for interim periods are not necessarily indicative of the results to be expected for a full year. Certain previously-reported amounts have been reclassified to conform to the current presentation. Use of Estimates in the Preparation of Financial Statements The preparation of our Unaudited Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. Actual results could differ from those estimates. Significant Accounting Policies Our significant accounting policies are consistent with those disclosed in Note 2 to our audited financial statements as of and for the year ended December 31, 2018 included in our Form 10-K, except for the adoption of Accounting Standards Update (“ASU”) 2016-02 – Leases Accounts Receivable and Allowance for Bad Debts We grant unsecured credit to customers under normal industry standards and terms, and have established policies and procedures that allow for an evaluation of each of our customer’s creditworthiness. We typically receive payment from our customers 45 to 90 days after the services have been performed. We determine allowances for bad debts based on management’s assessment of the creditworthiness of our customers. Trade receivables are written off against the allowance when deemed uncollectible. Recoveries of trade receivables previously written off are recorded when cash is received. During the second quarter of 2019, we recorded an allowance of $0.1 million against the accounts receivable from a customer of the Environmental Services segment. Also, during the second quarter of 2019, we received $0.1 million from a former customer of the Environmental Services segment on accounts receivable that we had previously written off. As of September 30, 2019 and December 31, 2018, we had an allowance for doubtful accounts of $0.2 million and less than $0.1 million, respectively. Pacific Gas and Electric Bankruptcy PG&E Corporation and its wholly-owned subsidiary Pacific Gas and Electric Company (collectively, “PG&E”) filed for bankruptcy protection on January 29, 2019. PG&E is a significant customer that accounted for $43.4 million of the revenue and $6.4 million of the gross margin of our Pipeline Inspection segment during the year ended December 31, 2018. As of December 31, 2018, the assets on our Consolidated Balance Sheet included $10.3 million of accounts receivable from PG&E. We collected $1.0 million of this balance in January 2019 prior to PG&E’s bankruptcy filing. We generated $2.8 million of revenue from PG&E during the period from January 1, 2019 through January 28, 2019, bringing the total accounts receivable from PG&E to $12.1 million as of the date of the bankruptcy filing. In October 2019, we reached an agreement to collect $1.7 million of the pre-petition receivables from PG&E under a court-approved program to pay certain pre-petition claims to certain vendors in advance of PG&E's emergence from bankruptcy, which will bring the total remaining pre-petition receivables from PG&E to $10.4 million. We have continued to provide services to PG&E after the bankruptcy filing and have been receiving prompt payment for these services. We have not recorded an allowance against the accounts receivable from PG&E at September 30, 2019, as we do not believe it is probable that we will ultimately be unable to collect the full balance of the pre-petition receivables. However, due to uncertainties associated with the bankruptcy process, we cannot make assurances regarding the ultimate collection of these receivables nor can we make assurances regarding the timing of any such collections. Sanchez Bankruptcy Our former customer, Sanchez Energy Corporation and certain of its affiliates (collectively, “Sanchez”) filed for bankruptcy protection in August 2019. As of September 30, 2019, our Unaudited Condensed Consolidated Balance Sheet included $0.5 million of pre-petition accounts receivable from Sanchez. We have recorded an allowance of less than $0.1 million at September 30, 2019 against the accounts receivable from Sanchez. We do not believe it is probable that we will be unable to collect the remaining $0.4 million balance of the pre-petition receivables. However, due to uncertainties associated with the bankruptcy process, we cannot make assurances regarding the ultimate collection of these receivables nor can we make assurances regarding the timing of any such collections. Accrued Payroll and Other Accrued payroll and other September 30, 2019 December 31, 2018 (in thousands) Accrued payroll $ 15,387 $ 9,468 Customer deposits 1,160 1,202 Other 1,449 1,606 $ 17,996 $ 12,276 Foreign Currency Translation Our Unaudited Condensed Consolidated Financial Statements are reported in U.S. dollars. We translate our Canadian-dollar-denominated assets and liabilities into U.S. dollars at the exchange rate in effect at the balance sheet date. We translate our Canadian-dollar-denominated revenues and expenses into U.S. dollars at the average exchange rate in effect during the period in which the applicable revenues and expenses were recorded. Our Unaudited Condensed Consolidated Balance Sheet at September 30, 2019 includes $2.5 million of accumulated other comprehensive loss accumulated other comprehensive loss partners’ capital foreign currency gains (losses) New Accounting Standards In 2019, we adopted the following new accounting standard issued by the Financial Accounting Standards Board (“FASB”); The FASB issued ASU 2016-02 – Leases We made accounting policy elections to not capitalize leases with a lease term of twelve months or less and to not separate lease and non-lease components for all asset classes. We also elected the package of practical expedients within ASU 2016-02 that allows an entity to not reassess prior to the effective date (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases, or (iii) initial direct costs for any existing leases, but did not elect the practical expedient of hindsight when determining the lease term of existing contracts at the effective date. In July 2018, the FASB issued ASU 2018-11 – Targeted Improvements partners' capital Other accounting guidance proposed by the FASB that may impact our Unaudited Condensed Consolidated Financial Statements, which we have not yet adopted include: The FASB issued ASU 2016-13 – Financial Instruments – Credit Losses The FASB issued ASU 2018-15 – Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract

Debt

Debt	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Debt	3. Debt On May 29, 2018, we entered into an amended and restated credit agreement (as amended and restated, the “Credit Agreement”) that provided up to $90.0 million in borrowing capacity, subject to certain limitations. The Credit Agreement contains an accordion feature that allowed us to increase the borrowing capacity to $110.0 million if new lenders joined the facility. In October 2019, two new lenders joined the facility, and on October 25, 2019, we accordingly increased the total borrowing capacity to $110.0 million. The three-year Credit Agreement matures May 29, 2021. The obligations under the Credit Agreement are secured by a first priority lien on substantially all of our assets. The credit agreement as it existed prior to the May 29, 2018 amendment will hereinafter be referred to as the “Previous Credit Agreement” or, together with the Credit Agreement, as the “Credit Agreements”. Outstanding borrowings at September 30, 2019 and December 31, 2018 were $80.9 million and $76.1 million, respectively, and are reflected as long-term debt debt issuance costs, net We incurred certain debt issuance costs associated with the Previous Credit Agreement, which we were amortizing on a straight-line basis over the life of the Previous Credit Agreement. Upon amending the Credit Agreement in May 2018, we wrote off $0.1 million of these debt issuance costs, which represented the portion of the unamortized debt issuance costs attributable to lenders who are no longer participating in the credit facility subsequent to the amendment. The remaining debt issuance costs associated with the Previous Credit Agreement, along with $1.3 million of debt issuance costs associated with the amended and restated Credit Agreement, are being amortized on a straight-line basis over the three-year term of the Credit Agreement. All borrowings under the Credit Agreement bear interest, at our option, on a leveraged based grid pricing at (i) a base rate plus a margin of 1.5% to 3.0% per annum (“Base Rate Borrowing”) or (ii) an adjusted LIBOR rate plus a margin of 2.5% to 4.0% per annum (“LIBOR Borrowings”). The applicable margin is determined based on the leverage ratio of the Partnership, as defined in the Credit Agreement. The interest rate on our borrowings ranged between 5.54% and 6.02% for the nine months ended September 30, 2019 and 4.74% and 5.95% for the nine months ended September 30, 2018. As of September 30, 2019, the interest rate in effect on our outstanding borrowings was 5.54%. Interest on Base Rate Borrowings is payable monthly. Interest on LIBOR Borrowings is paid upon maturity of the underlying LIBOR contract, but no less often than quarterly. Commitment fees are charged at a rate of 0.50% on any unused credit and are payable quarterly. Interest paid, including commitment fees, was $1.3 million and $1.1 million for the three months ended September 30, 2019 and 2018, respectively. Interest paid, including commitment fees, was $3.7 million and $4.6 million for the nine months ended September 30, 2019 and 2018, respectively. The Credit Agreement contains various customary covenants and restrictive provisions. The Credit Agreement also requires maintenance of certain financial covenants at each quarter end, including a leverage ratio (as defined in the Credit Agreement) of not more than 4.0 to 1.0 and an interest coverage ratio (as defined in the Credit Agreement) of not less than 3.0 to 1.0. At September 30, 2019, our leverage ratio was 2.8 to 1.0 and our interest coverage ratio was 6.4 to 1.0, pursuant to the Credit Agreement. Upon the occurrence and during the continuation of an event of default, subject to the terms and conditions of the Credit Agreement, the lenders may declare any outstanding principal, together with any accrued and unpaid interest, to be immediately due and payable and may exercise the other remedies set forth or referred to in the Credit Agreement. We were in compliance with all debt covenants as of September 30, 2019. In addition, the Credit Agreement restricts our ability to make distributions on, or redeem or repurchase, our equity interests, with certain exceptions detailed in the Credit Agreement. However, we may make distributions of available cash so long as, both at the time of the distribution and after giving effect to the distribution, no default exists under the Credit Agreement, we are in compliance with the financial covenants in the Credit Agreement, and we have at least $5.0 million of unused capacity on the Credit Agreement at the time of the distribution. As of September 30, 2019, we had $8.5 million of unused borrowing capacity under the Credit Agreement. In October 2019, our unused borrowing capacity increased to $28.5 million when two new lenders joined the Credit Agreement.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	4. Income Taxes The income tax expense As a publicly-traded partnership, we are subject to a statutory requirement that 90% of our total gross income represents “qualifying income” (as defined by the Internal Revenue Code, related Treasury Regulations, and Internal Revenue Service pronouncements), determined on a calendar-year basis. If our qualifying income does not meet this statutory requirement, we could be taxed as a corporation for federal and state income tax purposes. Our income has met the statutory qualifying income requirement each year since our initial public offering.

Equity

Equity	9 Months Ended
	Sep. 30, 2019
Equity [Abstract]
Equity	5. Equity Series A Preferred Units On May 29, 2018 (the “Closing Date”), we entered into a Series A Preferred Unit Purchase Agreement (the “Preferred Unit Purchase Agreement”) with an entity controlled by Charles C. Stephenson, Jr. (the “Purchaser”), an affiliate of our General Partner, where we issued and sold in a private placement 5,769,231 Series A Preferred Units representing limited partner interests in the Partnership (the “Preferred Units”) to the Purchaser for a cash purchase price of $7.54 per Preferred Unit, resulting in gross proceeds to the Partnership of $43.5 million. We used proceeds from the transaction to reduce outstanding borrowings on our revolving credit facility. Concurrent with the closing of this transaction, we entered into an amended and restated Credit Agreement dated as of May 29, 2018, to amend and restate the terms of our credit facility, as more fully described in Note 3. The Preferred Unit Purchase Agreement contains customary representations, warranties, and covenants of the Partnership and the Purchaser. The Partnership and the Purchaser agreed to indemnify each other and their respective officers, directors, managers, employees, agents, counsel, accountants, investment bankers, and other representatives against certain losses resulting from breaches of their respective representations, warranties, and covenants, subject to certain negotiated limitations and survival periods set forth in the Preferred Unit Purchase Agreement. Pursuant to the Preferred Unit Purchase Agreement, and in connection with the closing of this transaction, our General Partner executed the First Amendment to First Amended and Restated Agreement of Limited Partnership of the Partnership, which authorizes and establishes the rights and preferences of the Preferred Units. The Preferred Units have voting rights that are identical to the voting rights of the common units into which such Preferred Units would be converted at the then-applicable conversion rate. The Purchaser is entitled to receive quarterly distributions that represent an annual return of 9.5% on the Preferred Units. Of this 9.5% annual return, we are required to pay at least 2.5% in cash and will have the option to pay the remaining 7.0% in kind (in the form of issuing additional preferred units) for the first twelve quarters after the Closing Date. After the third anniversary of the Closing Date, the Purchaser will have the option to convert the Preferred Units into common units on a one-for-one basis. If certain conditions are met after the third anniversary of the Closing Date, we will have the option to cause the Preferred Units to convert to common units. After the third anniversary of the Closing Date, we will also have the option to redeem the Preferred Units. We may redeem the Preferred Units (a) at any time after the third anniversary of the Closing Date and on or prior to the fourth anniversary of the Closing Date at a redemption price equal to 105% of the issue price, and (b) at any time after the fourth anniversary of the Closing Date at a redemption price equal to 101% of the issue price. Earnings Per Unit Our net income Income attributable to our preferred unitholder Net income attributable to noncontrolling interests Net income attributable to common unitholders Basic net income per common limited partner unit net income attributable to common unitholders Diluted net income per common limited partner unit The following table summarizes the calculation of the basic net income per common limited partner unit Three Months Ended September 30 Nine Months Ended September 30 2019 2018 2019 2018 (in thousands, except per unit data) Net income attributable to common unitholders $ 3,813 $ 3,620 $ 8,713 $ 7,385 Weighted average common units outstanding 12,065 11,940 12,030 11,924 Basic net income per common limited partner unit $ 0.32 $ 0.30 $ 0.72 $ 0.62 The following table summarizes the calculation of the diluted net income per common limited partner unit Three Months Ended September 30 Nine Months Ended September 30 2019 2018 2019 2018 (in thousands, except per unit data) Net income attributable to common unitholders $ 3,813 $ 3,620 $ 8,713 $ 7,385 Net income attributable to preferred unitholder 1,033 1,045 3,099 1,412 Net income attributable to limited partners $ 4,846 $ 4,665 $ 11,812 $ 8,797 Weighted average common units outstanding 12,065 11,940 12,030 11,924 Effect of dilutive securities: Weighted average preferred units outstanding 5,769 5,769 5,769 2,628 Long-term incentive plan unvested units 516 431 408 418 Diluted weighted average common units outstanding 18,350 18,140 18,207 14,970 Diluted net income per common limited partner unit $ 0.26 $ 0.26 $ 0.65 $ 0.59 Cash Distributions The following table summarizes the cash distributions declared and paid to our common unitholders for 2018 and 2019: Payment Date Per Unit Cash Total Cash Total Cash (in thousands) February 14, 2018 $ 0.21 $ 2,498 $ 1,599 May 15, 2018 0.21 2,506 1,604 August 14, 2018 0.21 2,506 1,604 November 14, 2018 0.21 2,509 1,606 Total 2018 Distributions $ 0.84 $ 10,019 $ 6,413 February 14, 2019 $ 0.21 $ 2,510 $ 1,606 May 15, 2019 0.21 2,531 1,622 August 14, 2019 0.21 2,534 1,624 November 14, 2019 (b) 0.21 2,534 1,627 Total 2019 Distributions (to date) $ 0.84 $ 10,109 $ 6,479 (a) 64% of the Partnership’s outstanding common units at September 30, 2019 were held by affiliates. (b) Third quarter 2019 distribution was declared and will be paid in the fourth quarter of 2019. The following table summarizes the distributions paid to our preferred unitholder for 2018 and 2019: Payment Date Cash Paid-in-Kind Total (in thousands) November 14, 2018 (a) $ 1,412 $ — $ 1,412 Total 2018 Distributions $ 1,412 $ — $ 1,412 February 14, 2019 $ 1,033 $ — $ 1,033 May 15, 2019 1,033 — 1,033 August 14, 2019 1,033 — 1,033 November 14, 2019 (b) 1,033 — 1,033 Total 2019 Distributions $ 4,132 $ — $ 4,132 (a) This distribution relates to the period from May 29, 2018 (date of preferred unit issuance) through September 30, 2018. (b) Third quarter 2019 distribution was declared and will be paid in the fourth quarter of 2019. Equity Compensation Our General Partner has adopted a long-term incentive plan (“LTIP”) that authorizes the issuance of up to 2.5 million common units. Certain directors and employees of the Partnership have been awarded phantom restricted units (“Units”) under the terms of the LTIP in the form of time-based unit awards (“Service Units”), performance-based unit awards (“Performance Units”) and market-based unit awards (“Market Units”). We recorded expense of $0.7 million and $0.9 million during the nine months ended September 30, 2019 and 2018, respectively, related to the Unit awards. Time-Based Unit Awards Nine Months Ended September 30, 2019 2018 Weighted Weighted Average Average Grant Grant Number Date Fair Number Date Fair of Units Value / Unit of Units Value / Unit Unvested units at January 1 873,061 $ 5.83 587,014 $ 8.56 Units granted 201,306 $ 4.40 396,484 $ 3.24 Units vested (140,556 ) $ 8.56 (68,038 ) $ 14.10 Units forfeited (61,774 ) $ 6.22 (44,383 ) $ 5.76 Unvested units at September 30 872,037 $ 5.04 871,077 $ 5.85 Performance-Based Unit Awards In addition, in the third quarter of 2019, we granted Performance Units to certain employees that are subject to performance conditions in addition to the service condition. These Performance Units will vest in April 2022, April 2023, April 2024, or not at all, depending on our performance relative to a specified profitability target. We recognize compensation expense on a straight-line basis over the estimated vesting period of the grant. We adjust the life-to-date expense recognized for the Performance Units for any changes in our estimates of the number of units that will vest and the timing of vesting. We account for forfeitures when they occur. The Performance Units granted in the third quarter of 2019 had an estimated grant date fair value of $4.19 per unit and are being expensed over a service period of 3.73 years. Total unearned compensation associated with the Performance Units at September 30, 2019 was $0.4 million with an average remaining life of 2.88 years. The unvested Performance Units at September 30, 2019 also include one grant of 72,046 units that vests in November 2021, contingent upon the recipient meeting certain specified performance targets. Nine Months Ended September 30, 2019 2018 Weighted Weighted Average Average Grant Grant Number Date Fair Number Date Fair of Units Value / Unit of Units Value / Unit Unvested units at January 1 101,648 $ 5.11 77,495 $ 7.75 Units granted 89,402 $ 4.19 — $ — Units vested (6,167 ) $ 6.54 (7,184 ) $ 8.49 Units forfeited (24,310 ) $ 6.45 (40,709 ) $ 8.49 Unvested units at September 30 160,573 $ 4.34 29,602 $ 6.54 Market-Based Unit Awards Nine Months Ended Weighted Average Grant Number Date Fair of Units Value / Unit Unvested units at January 1 — Units granted 89,403 $ 3.54 Units vested — Units forfeited (875 ) $ 3.54 Unvested units at September 30 88,528 $ 3.54

Related-Party Transactions

Related-Party Transactions	9 Months Ended
	Sep. 30, 2019
Related Party Transactions [Abstract]
Related-Party Transactions	6. Related-Party Transactions Omnibus Agreement and Other Support from Holdings We are party to an omnibus agreement with Holdings and other related parties. The omnibus agreement governs the following matters, among other things: ● our payment of an annual administrative fee in the amount of $4.5 million (or approximately $1.1 million per quarter) to Holdings, for providing certain partnership overhead services, including executive management services by certain officers of our General Partner. This fee also includes the incremental general and administrative expenses we incur as a result of being a publicly traded partnership; and ● our right of first offer on Holdings’ and its subsidiaries’ assets used in, and entities primarily engaged in, providing saltwater disposal and other water and environmental services. So long as Holdings controls our General Partner, the omnibus agreement will remain in full force and effect, unless we and Holdings agree to terminate it sooner. If Holdings ceases to control our General Partner, either party may terminate the omnibus agreement. We and Holdings may agree to further amend the omnibus agreement; however, amendments that the General Partner determines are adverse to our unitholders will also require the approval of the Conflicts Committee of our Board of Directors. As part of our new Credit Agreement, Holdings agreed to waive the omnibus fee to support us in the event our leverage ratio were to exceed 3.75 times our trailing twelve-month Adjusted EBITDA at any quarter-end during the term of the facility. Alati Arnegard, LLC The Partnership provides management services to a 25% owned company, Alati Arnegard, LLC (“Arnegard”), which is part of the Environmental Services segment. We recorded earnings from this investment of less than $0.1 million and $0.2 million for the nine months ended September 30, 2019 and 2018, respectively. These earnings are recorded in other, net equity in earnings of investee revenue trade accounts receivable, net other assets CF Inspection Management, LLC We have also entered into a joint venture with CF Inspection, a nationally-qualified woman-owned inspection firm affiliated with one of Holdings’ owners and a Director of our General Partner. CF Inspection allows us to offer various services to clients that require the services of an approved Women’s Business Enterprise (“WBE”), as CF Inspection is certified as a Women’s Business Enterprise by the Supplier Clearinghouse in California and as a National Women’s Business Enterprise by the Women’s Business Enterprise National Council. We own 49% of CF Inspection and Cynthia A. Field, an affiliate of Holdings and a Director of our General Partner, owns the remaining 51% of CF Inspection. For the nine months ended September 30, 2019, CF Inspection, which is part of the Pipeline Inspection segment, represented approximately 3.0% of our consolidated revenue. Sale of Preferred Equity As described in Note 5, we issued and sold $43.5 million of preferred equity to an affiliate in May 2018.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	7. Commitments and Contingencies Security Deposits The Partnership has various performance obligations that are secured with short-term security deposits (reflected as restricted cash equivalents in our Unaudited Condensed Consolidated Statements of Cash Flows) totaling $0.6 million at September 30, 2019 and December 31, 2018. These amounts are included in prepaid expenses and other Compliance Audit Contingencies Certain customer master service agreements (“MSA’s”) offer our customers the opportunity to perform periodic compliance audits, which include the examination of the accuracy of our invoices. Should our invoices be determined to be inconsistent with the MSA, or inaccurate, the MSA’s may provide the customer the right to receive a credit or refund for any overcharges identified. At any given time, we may have multiple audits ongoing. As of September 30, 2019 and December 31, 2018, we established a reserve of $0.1 million for potential liabilities related to these compliance audit contingencies. Legal Proceedings Fithian v. TIR LLC On October 5, 2017, a former inspector for TIR LLC and Cypress Energy Management – TIR, LLC (“CEM TIR”) filed a putative collective action lawsuit alleging that TIR LLC, CEM TIR and Cypress Energy Partners – Texas, LLC failed to pay a class of workers overtime in compliance with the Fair Labor Standards Act (“FLSA”) titled James Fithian, et al v. TIR LLC, et al in the United States District Court for the Western District of Texas, Midland Division. The plaintiff subsequently withdrew his action and filed a similar action in Oklahoma State Court, District of Tulsa County. The plaintiff alleged he was a non-exempt employee of CEM TIR and that he and other potential class members were not paid overtime in compliance with the FLSA. The plaintiff sought to proceed as a collective action and to receive unpaid overtime and other monetary damages, including attorney’s fees. The Partnership, TIR LLC, CEM TIR and Cypress Energy Partners – Texas, LLC denied the claims. On March 28, 2018, the court granted a joint stipulation of dismissal without prejudice in regard to TIR LLC and Cypress Energy Partners – Texas, LLC, as neither of those parties were employers of the plaintiff or the putative class members during the time period that is the subject of the lawsuit. On July 26, 2018, the plaintiff filed a motion for conditional class certification. CEM TIR subsequently filed pleadings opposing the motion. On January 25, 2019, the court denied the plaintiff’s motion for conditional class certification. On June 10, 2019, the court entered a scheduling order that proscribed, among other things, that the deadline for additional parties to join the lawsuit of August 1, 2019, and that the parties participate in a settlement conference or mediation no later than September 1, 2019. After the deadline, plaintiff’s counsel submitted consents for five additional inspectors to join the lawsuit, to which CEM TIR objected. On August 28, 2019, the parties participated in a settlement conference in which no settlement was reached. Subsequent to the settlement conference, CEM-TIR submitted offers of judgment in immaterial amounts to the named plaintiff and the two opt-in plaintiffs. All plaintiffs accepted the settlement offers. CEM TIR’s counterclaim against Mr. Fithian remains outstanding. Sun Mountain LLC v. TIR-PUC On February 27, 2019, Sun Mountain LLC (“Sun Mountain”), a subcontractor of TIR-PUC, filed a lawsuit alleging that TIR-PUC failed to pay invoices amounting to approximately $3.5 million for services subcontracted to Sun Mountain under TIR-PUC’s agreement to provide services to Pacific Gas and Electric Company. Sun Mountain filed the action in Federal District Court for the Northern District of Oklahoma. TIR-PUC denied that such amounts were owed, as conditions to TIR-PUC’s obligation to make the payments were not met. The full amount of these invoices is included within accounts payable Other From time to time, we are subject to various claims, lawsuits and other legal proceedings brought or threatened against us in the ordinary course of our business. These actions and proceedings may seek, among other things, compensation for alleged personal injury, workers' compensation, employment discrimination and other employment-related damages, breach of contract, property damage, environmental liabilities, multiemployer pension plan withdrawal liabilities, punitive damages and civil penalties or other losses, liquidated damages, consequential damages, or injunctive or declaratory relief. We have been and may in the future be subject to litigation involving allegations of violations of the Fair Labor Standards Act and state wage and hour laws. In addition, we generally indemnify our customers for claims related to the services we provide and actions we take under our contracts, including claims regarding the Fair Labor Standards Act and state wage and hour laws, and, in some instances, we may be allocated risk through our contract terms for actions by our customers or other third parties. Claims related to the Fair Labor Standards Act are generally not covered by insurance.

Sale of Salt Water Disposal Fac

Sale of Salt Water Disposal Facility	9 Months Ended
	Sep. 30, 2019
Business Combinations [Abstract]
Sale of Saltwater Disposal Facilities	8. Sale of Saltwater Disposal Facilities In 2018, we sold our subsidiaries Cypress Energy Partners – Orla SWD, LLC (“Orla”) and Cypress Energy Partners – Pecos SWD, LLC (“Pecos”), each of which owned a saltwater disposal facility in Texas, in separate transactions to unrelated parties for a combined $12.2 million of cash proceeds and a royalty interest in the future revenues of the Pecos facility. We recorded a combined gain on these transactions of $3.6 million during the nine months ended September 30, 2018, which represented the excess of the cash proceeds over the net book value of the assets sold. These gains are reported within gain on asset disposals, net

Leases

Leases	9 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Leases	9. Leases We determine if an agreement contains a lease at the inception of the arrangement. If an arrangement is determined to contain a lease, we classify the lease as an operating lease or a finance lease depending on the terms of the arrangement. Right-of-use (“ROU”) assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are initially recognized based on the present value of lease payments over the lease term calculated using our incremental borrowing rate, unless the implicit rate is readily determinable. Lease assets also include any upfront lease payments made and exclude lease incentives. The lease terms of our leases include options to extend or terminate the lease when it is reasonably certain that those options will be exercised. Practical Expedients and Accounting Policy Elections We made accounting policy elections to not capitalize leases with a lease term of twelve months or less and to not separate lease and non-lease components for all asset classes. We also elected the package of practical expedients within ASU 2016-02 that allows an entity to not reassess prior to the effective date (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases, or (iii) initial direct costs for any existing leases, but did not elect the practical expedient of hindsight when determining the lease term of existing contracts at the effective date. Discount Rate Our lease agreements do not generally provide an implicit interest rate. As a result, we are required to use our incremental borrowing rate as the discount rate in calculating the present value of the lease payments. The incremental borrowing rate is the estimated rate of interest that we would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Operating Leases Our operating leases include leases for office space and land lease agreements for four of our saltwater disposal facilities. Our lease for our office space headquarters constitutes $2.9 million of our Operating ROU asset at September 30, 2019 of $3.1 million. The lease expires in November of 2024 unless terminated earlier with a payment of a penalty under certain circumstances specified in our lease. In the determination of the lease term for this lease, we concluded the lease term would continue through November 2024 as it was not reasonably certain at the inception of the agreement that we would exercise any of the termination options in the agreement. As of September 30, 2019, the weighted average remaining lease term and weighted average discount rate for our operating leases was 5.4 years and 6.1%, respectively. Our operating leases are reflected as operating lease right-of-use assets operating lease obligations Our operating lease obligations at September 30, 2019 with terms that are greater than one year mature as follows (in thousands): Remainder of 2019 $ 109 2020 680 2021 679 2022 679 2023 679 Thereafter 720 Total lease payments $ 3,546 Less imputed interest (542 ) Total operating lease obligation $ 3,004 Finance Leases Our finance leases primarily include leases for vehicles. As of September 30, 2019, the weighted average remaining lease term and weighted average discount rate for our finance leases was 3.2 years and 5.9%, respectively. Our finance leases are reflected as finance lease right-of-use assets, net finance lease obligations Remainder of 2019 $ 50 2020 193 2021 184 2022 124 2023 33 Thereafter — Total lease payments $ 584 Less imputed interest (51 ) Total finance lease obligation $ 533 Lease Expense Components During the nine months ended September 30, 2019, our lease expense consists of the following components (in thousands): Nine Months Ended September 30, 2019 Finance lease expense: Amortization of right-of-use assets $ 124 Interest on lease liabilities 23 Operating lease expense 507 Short-term lease expense - general and administrative 77 Short-term lease expense - costs of services (a) 2,397 Variable lease expense 7 Sublease income - related parties (25 ) Total lease expense $ 3,110 (a) These short-term lease expenses are included in costs of services

Reportable Segments

Reportable Segments	9 Months Ended
	Sep. 30, 2019
Segment Reporting [Abstract]
Reportable Segments	10. Reportable Segments The Partnership’s operations consist of three reportable segments: (i) Pipeline Inspection Services (“Pipeline Inspection”), (ii) Pipeline & Process Services and (iii) Water and Environmental Services (“Environmental Services”). Pipeline Inspection – Pipeline & Process Services Environmental Services – Other The following tables show operating income (loss) by reportable segment and a reconciliation of segment operating income to net income before income tax expense. Pipeline Pipeline & Environmental Other Total (in thousands) Three months ended September 30, 2019 Revenue $ 99,684 $ 6,199 $ 3,051 $ — $ 108,934 Costs of services 88,597 4,146 790 — 93,533 Gross margin 11,087 2,053 2,261 — 15,401 General and administrative 4,890 612 731 324 6,557 Depreciation, amortization and accretion 556 144 412 4 1,116 Operating income (loss) $ 5,641 $ 1,297 $ 1,118 $ (328 ) 7,728 Interest expense, net (1,376 ) Foreign currency gains (47 ) Other, net 82 Net income before income tax expense $ 6,387 Three months ended September 30, 2018 Revenue $ 77,606 $ 3,881 $ 3,325 $ (34 ) $ 84,778 Costs of services 68,350 2,592 962 (34 ) 71,870 Gross margin 9,256 1,289 2,363 — 12,908 General and administrative 4,422 592 774 276 6,064 Depreciation, amortization and accretion 571 143 410 — 1,124 Gains on asset disposals, net (21 ) (32 ) (769 ) — (822 ) Operating income (loss) $ 4,284 $ 586 $ 1,948 $ (276 ) 6,542 Interest expense, net (1,283 ) Foreign currency loss 97 Other, net 95 Net income before income tax expense $ 5,451 Pipeline Pipeline & Envirionmental Other Total (in thousands) Nine months ended September 30, 2019 Revenue $ 289,919 $ 12,554 $ 7,928 $ — $ 310,401 Costs of services 259,015 8,893 2,262 — 270,170 Gross margin 30,904 3,661 5,666 — 40,231 General and administrative 14,101 1,842 2,269 734 18,946 Depreciation, amortization and accretion 1,667 430 1,221 11 3,329 Gain on asset disposal, net — (23 ) — — (23 ) Operating income (loss) $ 15,136 $ 1,412 $ 2,176 $ (745 ) 17,979 Interest expense, net (4,102 ) Foreign currency gains 138 Other, net 220 Net income before income tax expense $ 14,235 Nine months ended September 30, 2018 Revenue $ 205,938 $ 11,307 $ 8,861 $ (34 ) $ 226,072 Costs of services 183,305 7,840 2,981 (34 ) 194,092 Gross margin 22,633 3,467 5,880 — 31,980 General and administrative 12,313 1,715 2,402 911 17,341 Depreciation, amortization and accretion 1,717 449 1,202 — 3,368 Gain on asset disposals, net (21 ) (77 ) (4,039 ) — (4,137 ) Operating income (loss) $ 8,624 $ 1,380 $ 6,315 $ (911 ) 15,408 Interest expense, net (4,907 ) Debt issuance cost write-off (114 ) Foreign currency loss (354 ) Other, net 302 Net income before income tax expense $ 10,335 Total Assets September 30, 2019 $ 132,360 $ 12,072 $ 22,757 $ 4,553 $ 171,742 December 31, 2018 $ 116,239 $ 10,972 $ 24,281 $ 1,361 $ 152,853

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The Unaudited Condensed Consolidated Financial Statements as of September 30, 2019 and for the three and nine months ended September 30, 2019 and 2018 include our accounts and those of our controlled subsidiaries. Investments over which we exercise significant influence, but do not control, are accounted for using the equity method of accounting. All intercompany transactions and account balances have been eliminated in consolidation. The Unaudited Condensed Consolidated Balance Sheet at December 31, 2018 is derived from our audited financial statements. The accompanying Unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim consolidated financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”). The Unaudited Condensed Consolidated Financial Statements include all adjustments considered necessary for a fair presentation of the consolidated financial position and consolidated results of operations for the interim periods presented. Such adjustments consist only of normal recurring items, unless otherwise disclosed herein. Accordingly, the Unaudited Condensed Consolidated Financial Statements do not include all of the information and notes required by GAAP for complete consolidated financial statements. However, we believe that the disclosures made are adequate to make the information not misleading. These interim Unaudited Condensed Consolidated Financial Statements should be read in conjunction with our audited financial statements as of and for the year ended December 31, 2018 included in our Form 10-K. The results of operations for interim periods are not necessarily indicative of the results to be expected for a full year. Certain previously-reported amounts have been reclassified to conform to the current presentation.
Use of Estimates in the Preparation of Financial Statements	Use of Estimates in the Preparation of Financial Statements The preparation of our Unaudited Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. Actual results could differ from those estimates.
Significant Accounting Policies	Significant Accounting Policies Our significant accounting policies are consistent with those disclosed in Note 2 to our audited financial statements as of and for the year ended December 31, 2018 included in our Form 10-K, except for the adoption of Accounting Standards Update (“ASU”) 2016-02 – Leases
Accounts Receivable and Allowance for Bad Debts	Accounts Receivable and Allowance for Bad Debts We grant unsecured credit to customers under normal industry standards and terms, and have established policies and procedures that allow for an evaluation of each of our customer’s creditworthiness. We typically receive payment from our customers 45 to 90 days after the services have been performed. We determine allowances for bad debts based on management’s assessment of the creditworthiness of our customers. Trade receivables are written off against the allowance when deemed uncollectible. Recoveries of trade receivables previously written off are recorded when cash is received. During the second quarter of 2019, we recorded an allowance of $0.1 million against the accounts receivable from a customer of the Environmental Services segment. Also, during the second quarter of 2019, we received $0.1 million from a former customer of the Environmental Services segment on accounts receivable that we had previously written off. As of September 30, 2019 and December 31, 2018, we had an allowance for doubtful accounts of $0.2 million and less than $0.1 million, respectively.
Pacific Gas and Electric Bankruptcy	Pacific Gas and Electric Bankruptcy PG&E Corporation and its wholly-owned subsidiary Pacific Gas and Electric Company (collectively, “PG&E”) filed for bankruptcy protection on January 29, 2019. PG&E is a significant customer that accounted for $43.4 million of the revenue and $6.4 million of the gross margin of our Pipeline Inspection segment during the year ended December 31, 2018. As of December 31, 2018, the assets on our Consolidated Balance Sheet included $10.3 million of accounts receivable from PG&E. We collected $1.0 million of this balance in January 2019 prior to PG&E’s bankruptcy filing. We generated $2.8 million of revenue from PG&E during the period from January 1, 2019 through January 28, 2019, bringing the total accounts receivable from PG&E to $12.1 million as of the date of the bankruptcy filing. In October 2019, we reached an agreement to collect $1.7 million of the pre-petition receivables from PG&E under a court-approved program to pay certain pre-petition claims to certain vendors in advance of PG&E's emergence from bankruptcy, which will bring the total remaining pre-petition receivables from PG&E to $10.4 million. We have continued to provide services to PG&E after the bankruptcy filing and have been receiving prompt payment for these services. We have not recorded an allowance against the accounts receivable from PG&E at September 30, 2019, as we do not believe it is probable that we will ultimately be unable to collect the full balance of the pre-petition receivables. However, due to uncertainties associated with the bankruptcy process, we cannot make assurances regarding the ultimate collection of these receivables nor can we make assurances regarding the timing of any such collections.
Sanchez Bankruptcy	Sanchez Bankruptcy Our former customer, Sanchez Energy Corporation and certain of its affiliates (collectively, “Sanchez”) filed for bankruptcy protection in August 2019. As of September 30, 2019, our Unaudited Condensed Consolidated Balance Sheet included $0.5 million of pre-petition accounts receivable from Sanchez. We have recorded an allowance of less than $0.1 million at September 30, 2019 against the accounts receivable from Sanchez. We do not believe it is probable that we will be unable to collect the remaining $0.4 million balance of the pre-petition receivables. However, due to uncertainties associated with the bankruptcy process, we cannot make assurances regarding the ultimate collection of these receivables nor can we make assurances regarding the timing of any such collections.
Accrued Payroll and Other	Accrued Payroll and Other Accrued payroll and other September 30, 2019 December 31, 2018 (in thousands) Accrued payroll $ 15,387 $ 9,468 Customer deposits 1,160 1,202 Other 1,449 1,606 $ 17,996 $ 12,276
Foreign Currency Translation	Foreign Currency Translation Our Unaudited Condensed Consolidated Financial Statements are reported in U.S. dollars. We translate our Canadian-dollar-denominated assets and liabilities into U.S. dollars at the exchange rate in effect at the balance sheet date. We translate our Canadian-dollar-denominated revenues and expenses into U.S. dollars at the average exchange rate in effect during the period in which the applicable revenues and expenses were recorded. Our Unaudited Condensed Consolidated Balance Sheet at September 30, 2019 includes $2.5 million of accumulated other comprehensive loss accumulated other comprehensive loss partners’ capital foreign currency gains (losses)
New Accounting Standards	New Accounting Standards In 2019, we adopted the following new accounting standard issued by the Financial Accounting Standards Board (“FASB”); The FASB issued ASU 2016-02 – Leases We made accounting policy elections to not capitalize leases with a lease term of twelve months or less and to not separate lease and non-lease components for all asset classes. We also elected the package of practical expedients within ASU 2016-02 that allows an entity to not reassess prior to the effective date (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases, or (iii) initial direct costs for any existing leases, but did not elect the practical expedient of hindsight when determining the lease term of existing contracts at the effective date. In July 2018, the FASB issued ASU 2018-11 – Targeted Improvements partners' capital Other accounting guidance proposed by the FASB that may impact our Unaudited Condensed Consolidated Financial Statements, which we have not yet adopted include: The FASB issued ASU 2016-13 – Financial Instruments – Credit Losses The FASB issued ASU 2018-15 – Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract

Basis of Presentation and Sum_3

Basis of Presentation and Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Schedule of accrued payroll and other	Accrued payroll and other September 30, 2019 December 31, 2018 (in thousands) Accrued payroll $ 15,387 $ 9,468 Customer deposits 1,160 1,202 Other 1,449 1,606 $ 17,996 $ 12,276

Equity (Tables)

Equity (Tables)	9 Months Ended
	Sep. 30, 2019
Schedule of the calculation of the basic net income (loss) per common limited partner unit	The following table summarizes the calculation of the basic net income per common limited partner unit Three Months Ended September 30 Nine Months Ended September 30 2019 2018 2019 2018 (in thousands, except per unit data) Net income attributable to common unitholders $ 3,813 $ 3,620 $ 8,713 $ 7,385 Weighted average common units outstanding 12,065 11,940 12,030 11,924 Basic net income per common limited partner unit $ 0.32 $ 0.30 $ 0.72 $ 0.62
Schedule of the calculation of the diluted net income (loss) per common limited partner unit	The following table summarizes the calculation of the diluted net income per common limited partner unit Three Months Ended September 30 Nine Months Ended September 30 2019 2018 2019 2018 (in thousands, except per unit data) Net income attributable to common unitholders $ 3,813 $ 3,620 $ 8,713 $ 7,385 Net income attributable to preferred unitholder 1,033 1,045 3,099 1,412 Net income attributable to limited partners $ 4,846 $ 4,665 $ 11,812 $ 8,797 Weighted average common units outstanding 12,065 11,940 12,030 11,924 Effect of dilutive securities: Weighted average preferred units outstanding 5,769 5,769 5,769 2,628 Long-term incentive plan unvested units 516 431 408 418 Diluted weighted average common units outstanding 18,350 18,140 18,207 14,970 Diluted net income per common limited partner unit $ 0.26 $ 0.26 $ 0.65 $ 0.59
Schedule of cash distributions declared and paid to our common partners	The following table summarizes the cash distributions declared and paid to our common unitholders for 2018 and 2019: Payment Date Per Unit Cash Total Cash Total Cash (in thousands) February 14, 2018 $ 0.21 $ 2,498 $ 1,599 May 15, 2018 0.21 2,506 1,604 August 14, 2018 0.21 2,506 1,604 November 14, 2018 0.21 2,509 1,606 Total 2018 Distributions $ 0.84 $ 10,019 $ 6,413 February 14, 2019 $ 0.21 $ 2,510 $ 1,606 May 15, 2019 0.21 2,531 1,622 August 14, 2019 0.21 2,534 1,624 November 14, 2019 (b) 0.21 2,534 1,627 Total 2019 Distributions (to date) $ 0.84 $ 10,109 $ 6,479 (a) 64% of the Partnership’s outstanding common units at September 30, 2019 were held by affiliates. (b) Third quarter 2019 distribution was declared and will be paid in the fourth quarter of 2019.
Schedule of distributions paid to our preferred unitholder	The following table summarizes the distributions paid to our preferred unitholder for 2018 and 2019: Payment Date Cash Paid-in-Kind Total (in thousands) November 14, 2018 (a) $ 1,412 $ — $ 1,412 Total 2018 Distributions $ 1,412 $ — $ 1,412 February 14, 2019 $ 1,033 $ — $ 1,033 May 15, 2019 1,033 — 1,033 August 14, 2019 1,033 — 1,033 November 14, 2019 (b) 1,033 — 1,033 Total 2019 Distributions $ 4,132 $ — $ 4,132 (a) This distribution relates to the period from May 29, 2018 (date of preferred unit issuance) through September 30, 2018. (b) Third quarter 2019 distribution was declared and will be paid in the fourth quarter of 2019.
Service Units [Member]
Schedule of units activity	The following table summarizes the activity of the Service Units for the nine months ended September 30, 2019 and 2018: Nine Months Ended September 30, 2019 2018 Weighted Weighted Average Average Grant Grant Number Date Fair Number Date Fair of Units Value / Unit of Units Value / Unit Unvested units at January 1 873,061 $ 5.83 587,014 $ 8.56 Units granted 201,306 $ 4.40 396,484 $ 3.24 Units vested (140,556 ) $ 8.56 (68,038 ) $ 14.10 Units forfeited (61,774 ) $ 6.22 (44,383 ) $ 5.76 Unvested units at September 30 872,037 $ 5.04 871,077 $ 5.85
Performance Units [Member]
Schedule of units activity	The following table summarizes the activity of the Performance Units for the nine months ended September 30, 2019 and 2018: Nine Months Ended September 30, 2019 2018 Weighted Weighted Average Average Grant Grant Number Date Fair Number Date Fair of Units Value / Unit of Units Value / Unit Unvested units at January 1 101,648 $ 5.11 77,495 $ 7.75 Units granted 89,402 $ 4.19 — $ — Units vested (6,167 ) $ 6.54 (7,184 ) $ 8.49 Units forfeited (24,310 ) $ 6.45 (40,709 ) $ 8.49 Unvested units at September 30 160,573 $ 4.34 29,602 $ 6.54
Market Units [Member]
Schedule of units activity	The following table summarizes the activity of the Market Units for the nine months ended September 30, 2019: Nine Months Ended Weighted Average Grant Number Date Fair of Units Value / Unit Unvested units at January 1 — Units granted 89,403 $ 3.54 Units vested — Units forfeited (875 ) $ 3.54 Unvested units at September 30 88,528 $ 3.54

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Schedule of operating lease obligations	Our operating lease obligations at September 30, 2019 with terms that are greater than one year mature as follows (in thousands): Remainder of 2019 $ 109 2020 680 2021 679 2022 679 2023 679 Thereafter 720 Total lease payments $ 3,546 Less imputed interest (542 ) Total operating lease obligation $ 3,004
Schedule of finance lease obligations	Our finance lease obligations at September 30, 2019 with terms that are greater than one year mature as follows (in thousands): Remainder of 2019 $ 50 2020 193 2021 184 2022 124 2023 33 Thereafter — Total lease payments $ 584 Less imputed interest (51 ) Total finance lease obligation $ 533
Schedule of lease expense	During the nine months ended September 30, 2019, our lease expense consists of the following components (in thousands): Nine Months Ended September 30, 2019 Finance lease expense: Amortization of right-of-use assets $ 124 Interest on lease liabilities 23 Operating lease expense 507 Short-term lease expense - general and administrative 77 Short-term lease expense - costs of services (a) 2,397 Variable lease expense 7 Sublease income - related parties (25 ) Total lease expense $ 3,110

Reportable Segments (Tables)

Reportable Segments (Tables)	9 Months Ended
	Sep. 30, 2019
Segment Reporting [Abstract]
Schedule of operating income (loss) by reportable segment and a reconciliation of segment operating income to net income	The following tables show operating income (loss) by reportable segment and a reconciliation of segment operating income to net income before income tax expense. Pipeline Pipeline & Environmental Other Total (in thousands) Three months ended September 30, 2019 Revenue $ 99,684 $ 6,199 $ 3,051 $ — $ 108,934 Costs of services 88,597 4,146 790 — 93,533 Gross margin 11,087 2,053 2,261 — 15,401 General and administrative 4,890 612 731 324 6,557 Depreciation, amortization and accretion 556 144 412 4 1,116 Operating income (loss) $ 5,641 $ 1,297 $ 1,118 $ (328 ) 7,728 Interest expense, net (1,376 ) Foreign currency gains (47 ) Other, net 82 Net income before income tax expense $ 6,387 Three months ended September 30, 2018 Revenue $ 77,606 $ 3,881 $ 3,325 $ (34 ) $ 84,778 Costs of services 68,350 2,592 962 (34 ) 71,870 Gross margin 9,256 1,289 2,363 — 12,908 General and administrative 4,422 592 774 276 6,064 Depreciation, amortization and accretion 571 143 410 — 1,124 Gains on asset disposals, net (21 ) (32 ) (769 ) — (822 ) Operating income (loss) $ 4,284 $ 586 $ 1,948 $ (276 ) 6,542 Interest expense, net (1,283 ) Foreign currency loss 97 Other, net 95 Net income before income tax expense $ 5,451 Pipeline Pipeline & Envirionmental Other Total (in thousands) Nine months ended September 30, 2019 Revenue $ 289,919 $ 12,554 $ 7,928 $ — $ 310,401 Costs of services 259,015 8,893 2,262 — 270,170 Gross margin 30,904 3,661 5,666 — 40,231 General and administrative 14,101 1,842 2,269 734 18,946 Depreciation, amortization and accretion 1,667 430 1,221 11 3,329 Gain on asset disposal, net — (23 ) — — (23 ) Operating income (loss) $ 15,136 $ 1,412 $ 2,176 $ (745 ) 17,979 Interest expense, net (4,102 ) Foreign currency gains 138 Other, net 220 Net income before income tax expense $ 14,235 Nine months ended September 30, 2018 Revenue $ 205,938 $ 11,307 $ 8,861 $ (34 ) $ 226,072 Costs of services 183,305 7,840 2,981 (34 ) 194,092 Gross margin 22,633 3,467 5,880 — 31,980 General and administrative 12,313 1,715 2,402 911 17,341 Depreciation, amortization and accretion 1,717 449 1,202 — 3,368 Gain on asset disposals, net (21 ) (77 ) (4,039 ) — (4,137 ) Operating income (loss) $ 8,624 $ 1,380 $ 6,315 $ (911 ) 15,408 Interest expense, net (4,907 ) Debt issuance cost write-off (114 ) Foreign currency loss (354 ) Other, net 302 Net income before income tax expense $ 10,335 Total Assets September 30, 2019 $ 132,360 $ 12,072 $ 22,757 $ 4,553 $ 171,742 December 31, 2018 $ 116,239 $ 10,972 $ 24,281 $ 1,361 $ 152,853

Organization and Operations (De

Organization and Operations (Details Narrative)	9 Months Ended
	Sep. 30, 2019Number
Equity interest salt water disposal facility	25.00%
Environmental Services [Member]
Number of saltwater disposal facilities	9
Number of wholly-owned facilities	8
Number of pipelines connected to E&P customers to saltwater disposal facilities	10
Number of saltwater disposal facilities developed and owned by partnership	2

Basis of Presentation and Sum_4

Basis of Presentation and Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Accrued payroll	$ 15,387	$ 9,468
Customer deposits	1,160	1,202
Other	1,449	1,606
Total	$ 17,996	$ 12,276

Basis of Presentation and Sum_5

Basis of Presentation and Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	1 Months Ended			3 Months Ended			9 Months Ended		12 Months Ended
	Oct. 31, 2019	Jan. 31, 2019	Jan. 28, 2019	Sep. 30, 2019	Jun. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Jan. 02, 2019
Allowance for doubtful accounts receivable				$ 200			$ 200
Revenues				108,934		$ 84,778	310,401	$ 226,072
Gross margin				15,401		12,908	40,231	31,980
Accumulated other comprehensive loss				(2,515)			(2,515)		$ (2,414)
Operating lease right-of-use assets				3,068			3,068			$ 3,500
Current operating lease obligations				453			453			500
Noncurrent operating lease obligations				2,551			2,551			$ 3,000
Environmental Services [Member]
Allowance for accounts receivable recorded					$ 100
Allowance for accounts receivable, recovery					$ 100
Revenues				3,051		3,325	7,928	8,861
Gross margin				2,261		$ 2,363	5,666	$ 5,880
Maximum [Member]
Allowance for doubtful accounts receivable									100
PG&E Corporation [Member] | Pipeline Inspection segment [Member]
Revenues			$ 2,800						43,300
Gross margin									6,400
Accounts receivable			$ 12,100						$ 10,300
Proceeds from customers		$ 1,000
Sanchez Energy Corporation [Member]
Accounts receivable				400			400
Accounts receivable before allowance				500			500
Sanchez Energy Corporation [Member] | Maximum [Member]
Allowance for doubtful accounts receivable				$ 100			$ 100
Subsequent Event [Member] | PG&E Corporation [Member] | Pipeline Inspection segment [Member]
Accounts receivable	$ 10,400
Proceeds from customers	$ 1,700

Debt (Details Narrative)

Debt (Details Narrative) $ in Thousands	1 Months Ended		3 Months Ended		9 Months Ended
	Oct. 31, 2019	May 31, 2018USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)	Oct. 25, 2019USD ($)	Dec. 31, 2018USD ($)	May 29, 2018USD ($)
Long-term debt			$ 80,929		$ 80,929			$ 76,129
Debt issuance costs, net			869		869			$ 1,260
Debt issuance cost write-off						$ 114
Finance lease liabilities			534		$ 534
Base Rate [Member] | Minimum [Member]
Spread on variable rate borrowings					1.50%
Base Rate [Member] | Maximum [Member]
Spread on variable rate borrowings					3.00%
LIBOR [Member] | Minimum [Member]
Spread on variable rate borrowings					2.50%
LIBOR [Member] | Maximum [Member]
Spread on variable rate borrowings					4.00%
Amended and Restated Credit Agreement [Member]
Line of credit facility, maximum borrowing capacity									$ 90,000
Line of credit facility increase borrowings capacity									$ 110,000
Debt issuance costs			$ 1,300		$ 1,300
Debt issuance cost write-off		$ 100
Debt covenant total adjusted leverage ratio maximum					4
Debt covenant interest coverage ratio minimum					3
Total adjusted leverage ratio			2.8		2.8
Interest coverage ratio			6.4		6.4
Credit agreement minimum unused capacity at time of distributions			$ 5,000		$ 5,000
Credit agreement available borrowings			$ 8,500		$ 8,500
Amended and Restated Credit Agreement [Member] | Subsequent Event [Member]
Line of credit facility, maximum borrowing capacity							$ 110,000
Line of credit facility maturity date	May 29, 2021
Credit agreement available borrowings							$ 28,500
Line of Credit [Member]
Debt instrument, interest rate, effective percentage			5.54%		5.54%
Commitment fee rate, percentage					0.50%
Interest expense including commitment fee			$ 1,300	$ 1,100	$ 3,700	$ 4,600
Line of Credit [Member] | Minimum [Member]
Debt instrument, interest rate, effective percentage during period					5.54%	4.74%
Line of Credit [Member] | Maximum [Member]
Debt instrument, interest rate, effective percentage during period					6.02%	5.95%

Income Taxes (Details Narrative

Income Taxes (Details Narrative)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Statutory tax rate	21.00%	21.00%
Threshold for nontaxation	90.00%

Equity (Details)

Equity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Equity [Abstract]
Net income attributable to common unitholders	$ 3,813	$ 3,620	$ 8,713	$ 7,385
Weighted average common units outstanding	12,065	11,940	12,030	11,924
Basic net income per common limited partner unit	$ 0.32	$ 0.30	$ 0.72	$ 0.62

Equity (Details 1)

Equity (Details 1) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Equity [Abstract]
Net income attributable to common unitholders	$ 3,813	$ 3,620	$ 8,713	$ 7,385
Net income attributable to preferred unitholder	1,033	1,045	3,099	1,412
Net income attributable to limited partners	$ 4,846	$ 4,665	$ 11,812	$ 8,797
Weighted average common units outstanding	12,065	11,940	12,030	11,924
Effect of dilutive securities:
Weighted average preferred units outstanding	5,769	5,769	5,769	2,628
Long-term incentive plan unvested units	516	431	408	418
Diluted weighted average common units outstanding	18,350	18,141	18,207	14,970
Diluted net income per common limited partner unit	$ 0.26	$ 0.26	$ 0.65	$ 0.59

Equity (Details 2)

Equity (Details 2) - USD ($) $ / shares in Units, $ in Thousands		Nov. 14, 2019	[1]	Aug. 14, 2019	May 15, 2019	Feb. 14, 2019	Nov. 14, 2018	Aug. 14, 2018	May 15, 2018	Feb. 14, 2018	Nov. 14, 2019	Dec. 31, 2018
Per Unit Cash Distribution (in dollars per share)				$ 0.21	$ 0.21	$ 0.21	$ 0.21	$ 0.21	$ 0.21	$ 0.21		$ 0.84
Total Cash Distribution				$ 2,534	$ 2,531	$ 2,510	$ 2,509	$ 2,506	$ 2,506	$ 2,498		$ 10,019
Subsequent Event [Member]
Per Unit Cash Distribution (in dollars per share)		$ 0.21									$ 0.84
Total Cash Distribution		$ 2,534									$ 10,109
Affiliated Entity [Member]
Total Cash Distribution	[2]			$ 1,624	$ 1,622	$ 1,606	$ 1,606	$ 1,604	$ 1,604	$ 1,599		$ 6,413
Affiliated Entity [Member] | Subsequent Event [Member]
Total Cash Distribution	[2]	$ 1,627									$ 6,479
[1]	Third quarter 2019 distribution was declared and will be paid in the fourth quarter of 2019.
[2]	64% of the Partnership's outstanding common units at September 30, 2019 were held by affiliates.

Equity (Details 3)

Equity (Details 3) - USD ($) $ in Thousands	Nov. 14, 2019	[1]	Aug. 14, 2019	May 15, 2019	Feb. 14, 2019	Nov. 14, 2018		Aug. 14, 2018	May 15, 2018	Feb. 14, 2018	Nov. 14, 2019	Dec. 31, 2018
Total Distributions			$ 2,534	$ 2,531	$ 2,510	$ 2,509		$ 2,506	$ 2,506	$ 2,498		$ 10,019
Subsequent Event [Member]
Total Distributions	$ 2,534										$ 10,109
Preferred Units [Member]
Total Distributions			1,033	1,033	1,033	1,412	[2]					1,412
Preferred Units [Member] | Subsequent Event [Member]
Total Distributions	1,033										4,132
Preferred Units [Member] | Total Cash Distribution [Member]
Total Distributions			$ 1,033	$ 1,033	$ 1,033	$ 1,412	[2]					$ 1,412
Preferred Units [Member] | Total Cash Distribution [Member] | Subsequent Event [Member]
Total Distributions	$ 1,033										$ 4,132
[1]	Third quarter 2019 distribution was declared and will be paid in the fourth quarter of 2019.
[2]	This distribution relates to the period from May 29, 2018 (date of preferred unit issuance) through September 30, 2018.

Equity (Details 4)

Equity (Details 4) - $ / shares	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Service Units [Member]
Number of Units
Unvested units at beginning	873,061	587,014
Units granted	201,306	396,484
Units vested	(140,556)	(68,038)
Units forfeited	(61,774)	(44,383)
Unvested units at ending	872,037	871,077
Weighted Average Grant Date Fair Value / Unit
Unvested units at beginning	$ 5.83	$ 8.56
Units granted	4.40	3.24
Units vested	8.56	14.10
Units forfeited	6.22	5.76
Unvested units at ending	$ 5.04	$ 5.85
Performance Units [Member]
Number of Units
Unvested units at beginning	101,648	77,495
Units granted	89,402
Units vested	(6,167)	(7,184)
Units forfeited	(24,310)	(40,709)
Unvested units at ending	160,573	29,602
Weighted Average Grant Date Fair Value / Unit
Unvested units at beginning	$ 5.11	$ 7.75
Units granted	4.19
Units vested	6.54	8.49
Units forfeited	6.45	8.49
Unvested units at ending	$ 4.34	$ 6.54
Market Units [Member]
Number of Units
Units granted	89,403
Units forfeited	(875)
Unvested units at ending	88,528
Weighted Average Grant Date Fair Value / Unit
Units granted	$ 3.54
Units forfeited	3.54
Unvested units at ending	$ 3.54

Equity (Details Narrative)

Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	May 29, 2018	Sep. 30, 2019
Percentage of partnership units held by affiliates		64.00%
Brown Integrity, LLC [Member]
Percentage of income attributable to noncontrolling interests		49.00%
CF Inspection Management, LLC [Member]
Percentage of income attributable to noncontrolling interests		51.00%
Preferred Units [Member]
Annual rate of return of Preferred Units (percent)		9.50%
Dividend distribution to be paid in cash (percent)		2.50%
Dividend distribution to be paid in kind (percent)		7.00%
Private Placement [Member] | Preferred Units [Member]
Number of units issued and sold in a private placement	5,769,231
Price per unit (in dollars per unit)	$ 7.54
Proceeds of units sold in a private placement	$ 43,500
Private Placement [Member] | Preferred Units [Member] | Redemption Period Two [Member]
Redemption price as percent of issue price	105.00%
Private Placement [Member] | Preferred Units [Member] | Redemption Period Third [Member]
Redemption price as percent of issue price	101.00%

Equity (Details Narrative 1)

Equity (Details Narrative 1) - USD ($) $ / shares in Units, $ in Thousands	Sep. 30, 2019	Sep. 30, 2019	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017
Share-based compensation expense			$ 746	$ 908
Long Term Incentive Plan [Member]
Shares authorized under plan	2,500,000	2,500,000	2,500,000
Share-based compensation expense			$ 700	$ 900
Service Units [Member]
Number of unvested units	872,037	872,037	872,037	871,077	873,061	587,014
Compensation cost not yet recognized	$ 2,700	$ 2,700	$ 2,700
Period for recognition of compensation cost	2 years 1 month 6 days
Unvested units granted, fair value			$ 4.40	$ 3.24
Service Units [Member] | Tranche One [Member]
Vesting percentage			33.33%
Vesting period			3 years
Service Units [Member] | Tranche Two [Member]
Vesting percentage			33.33%
Vesting period			4 years
Service Units [Member] | Tranche Three [Member]
Vesting percentage			33.33%
Vesting period			5 years
Performance Units [Member]
Number of unvested units	160,573	160,573	160,573	29,602	101,648	77,495
Compensation cost not yet recognized	$ 400	$ 400	$ 400
Period for recognition of compensation cost	2 years 10 months 17 days
Unvested units granted, fair value			$ 4.19
Performance Units [Member] | Tranche One [Member]
Vesting period			3 years
Performance Units [Member] | Tranche Two [Member]
Period for recognition of compensation cost		3 years 8 months 23 days
Unvested units granted, fair value		$ 4.19
Performance Units [Member] | Vesting in November 2021 [Member]
Number of unvested units	72,046	72,046	72,046
Market Units [Member]
Number of unvested units	88,528	88,528	88,528
Compensation cost not yet recognized	$ 300	$ 300	$ 300
Period for recognition of compensation cost	2 years 6 months
Unvested units granted, fair value			$ 3.54
Market Units [Member] | Tranche One [Member]
Period for recognition of compensation cost		2 years 8 months 23 days
Vesting percentage		50.00%
Unvested units granted, fair value		$ 3.51
Market Units [Member] | Tranche Two [Member]
Period for recognition of compensation cost		2 years 8 months 23 days
Vesting percentage		50.00%
Unvested units granted, fair value		$ 3.58

Related-Party Transactions (Det

Related-Party Transactions (Details Narrative) - USD ($) $ in Thousands	1 Months Ended	9 Months Ended
	May 31, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Equity in earnings of investee		$ 84	$ 169
Alati Arnegard LLC [Member]
Ownership interest		25.00%
Management fee revenue from related parties		$ 500	$ 500
Equity in earnings of investee		200
Accounts receivable from related parties		100		$ 100
Investment in Arnegard		300		$ 300
Maximum [Member] | Alati Arnegard LLC [Member]
Equity in earnings of investee		100
General Partner [Member] | Omnibus Agreement [Member]
Annual administrative fee		4,500
Quarterly administrative fee		$ 1,100
General Partner [Member] | Omnibus Agreement [Member] | Minimum [Member]
Leverage ratio fee waiver		3.75
Preferred Units [Member] | Affiliated Entity [Member] | Private Placement [Member]
Proceeds of units sold in a private placement	$ 43,500

Related-Party Transactions (D_2

Related-Party Transactions (Details Narrative 1) - CF Inspection Management, LLC [Member]	Sep. 30, 2019	Sep. 30, 2019
Ownership interest	49.00%
Revenues [Member]
Concentration percentage		3.00%
Cynthia A. Fields [Member]
Ownership interest	51.00%

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - USD ($) $ in Thousands	Feb. 27, 2019	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018
Performance Obligation [Member]
Short-term security deposits			$ 600	$ 600
Master Service Agreement Compliance Audits [Member]
Compliance audit contigencies reserve			$ 100	$ 100
Sun Mountain LLC v. TIR-PUC [Member]
Lawsuit filing date			February 27, 2019
Amount alleged owed in lawsuit for services	$ 3,500
Name of Plaintiff			Sun Mountain LLC
Name of Defendant			TIR-PUC
Settlement date			October 22, 2019
Forecast [Member] | Sun Mountain LLC v. TIR-PUC [Member]
Gain (loss) on settlement		$ 1,300

Sale of Saltwater Disposal Faci

Sale of Saltwater Disposal Facilities (Details Narrative) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Gain on asset disposals, net	$ 822	$ 23	$ 4,137
Environmental Services [Member]
Gain on asset disposals, net	$ 769		4,039
Environmental Services [Member] | Orla SWD, LLC and Pecos SWD, LLC [Member]
Cash proceeds from sale of subsidiaries				$ 12,200
Gain on asset disposals, net			$ 3,600
Allocated goodwill				$ 5,000

Leases (Details)

Leases (Details) $ in Thousands	Sep. 30, 2019USD ($)
Leases [Abstract]
Remainder of 2019	$ 109
2020	680
2021	679
2022	679
2023	679
Thereafter	720
Total lease payments	3,546
Less imputed interest	(542)
Total operating lease obligation	$ 3,004

Leases (Details 1)

Leases (Details 1) $ in Thousands	Sep. 30, 2019USD ($)
Leases [Abstract]
Remainder of 2019	$ 50
2020	193
2021	184
2022	124
2023	33
Total lease payments	584
Less imputed interest	(51)
Total finance lease obligation	$ 534

Leases (Details 2)

Leases (Details 2) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)
Finance lease expense:
Amortization of right-of-use assets	$ 124
Interest on lease liabilities	23
Operating lease expense	507
Variable lease expense	7
Sublease income - related parties	(25)
Total lease expense	3,110
General and Administrative [Member]
Finance lease expense:
Short-term lease expense	77
Cost of Services [Member]
Finance lease expense:
Short-term lease expense	$ 2,397	[1]
[1]	These short-term lease expenses are included in costs of services within our Consolidated Statement of Operations. The nature of these expenses includes the rental of compressors, dryers, vehicles, frac tanks, launchers, receivers and various other types of equipment. These rentals have lease terms of one year or less.

Leases (Details Narrative)

Leases (Details Narrative) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Jan. 02, 2019
ROU operating lease assets	$ 3,068	$ 3,500
Operating leases maturity terms	2024-11
Operating leases, weighted average remaining lease term	5 years 4 months 24 days
Operating leases, weighted average discount rate	6.10%
Finance lease, weighted average remaining lease term	3 years 2 months 12 days
Finance lease, weighted average discount rate	5.90%
Office Space Headquarters [Member]
ROU operating lease assets	$ 2,900

Reportable Segments (Details)

Reportable Segments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Revenues	$ 108,934	$ 84,778	$ 310,401	$ 226,072
Costs of services	93,533	71,870	270,170	194,092
Gross margin	15,401	12,908	40,231	31,980
General and administrative	6,557	6,064	18,946	17,341
Depreciation, amortization and accretion	1,116	1,124	3,329	3,368
Gain on asset disposal, net		(822)	(23)	(4,137)
Operating income (loss)	7,728	6,542	17,979	15,408
Interest expense, net	(1,376)	(1,283)	(4,102)	(4,907)
Debt issuance cost write-off				(114)
Foreign currency gains (losses)	(47)	97	138	(354)
Other, net	82	95	220	302
Net income before income tax expense	6,387	5,451	14,235	10,335
Total assets	171,742		171,742		$ 152,853
Pipeline Inspection [Member]
Revenues	99,684	77,606	289,919	205,938
Costs of services	88,597	68,350	259,015	183,305
Gross margin	11,087	9,256	30,904	22,633
General and administrative	4,890	4,422	14,101	12,313
Depreciation, amortization and accretion	556	571	1,667	1,717
Gain on asset disposal, net		(21)		(21)
Operating income (loss)	5,641	4,284	15,136	8,624
Total assets	132,360		132,360		116,239
Pipeline & Process Services [Member]
Revenues	6,199	3,881	12,554	11,307
Costs of services	4,146	2,592	8,893	7,840
Gross margin	2,053	1,289	3,661	3,467
General and administrative	612	592	1,842	1,715
Depreciation, amortization and accretion	144	143	430	449
Gain on asset disposal, net		(32)	(23)	(77)
Operating income (loss)	1,297	586	1,412	1,380
Total assets	12,072		12,072		10,972
Environmental Services [Member]
Revenues	3,051	3,325	7,928	8,861
Costs of services	790	962	2,262	2,981
Gross margin	2,261	2,363	5,666	5,880
General and administrative	731	774	2,269	2,402
Depreciation, amortization and accretion	412	410	1,221	1,202
Gain on asset disposal, net		(769)		(4,039)
Operating income (loss)	1,118	1,948	2,176	6,315
Total assets	22,757		22,757		24,281
Other [Member]
Revenues		(34)		(34)
Costs of services		(34)		(34)
General and administrative	324	276	734	911
Depreciation, amortization and accretion	4		11
Operating income (loss)	(328)	$ (276)	(745)	$ (911)
Total assets	$ 4,553		$ 4,553		$ 1,361

Reportable Segments (Details Na

Reportable Segments (Details Narrative) $ in Thousands	3 Months Ended			9 Months Ended
	Dec. 31, 2019USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)	Sep. 30, 2019USD ($)Number	Sep. 30, 2018USD ($)	Dec. 31, 2018USD ($)
Number of reportable segments				3
Equity interest salt water disposal facility		25.00%		25.00%
Alati Arnegard LLC [Member]
Ownership interest		25.00%		25.00%
Pipeline Inspection [Member]
Revenue recognized from prior years | $		$ 200	$ 500
Refund liability to customer | $		$ 400		$ 400		$ 400
Pipeline Inspection [Member] | Forecast [Member]
Catch-up adjustment to revenue | $	$ 600
Pipeline & Process Services [Member]
Revenue recognized from prior years | $					$ 300
Environmental Services [Member]
Number of commercial saltwater disposal (SWD) facilities				9
Produced water from disposal volumes (percent)				92.00%
Pipeline water delivered to saltwater disposal facilities (percent)				41.00%
Number of wholly-owned facilities				8
Number of pipelines connected to E&P customers to saltwater disposal facilities				10
Number of saltwater disposal facilities developed and owned by partnership				2
Environmental Services [Member] | Alati Arnegard LLC [Member]
Produced water from disposal volumes (percent)				95.00%
Pipeline water delivered to saltwater disposal facilities (percent)				61.00%