Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 02, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | USD Partners LP | |
Trading Symbol | USDP | |
Entity Central Index Key | 1,610,682 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Units | ||
Document Information [Line Items] | ||
Entity Shares Outstanding | 14,181,996 | |
Subordinated Units | ||
Document Information [Line Items] | ||
Entity Shares Outstanding | 8,370,836 | |
Class A Units | ||
Document Information [Line Items] | ||
Entity Shares Outstanding | 138,750 | |
General Partner | ||
Document Information [Line Items] | ||
Entity Shares Outstanding | 461,136 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues | ||||
Railroad incentives | $ 22 | $ 18 | $ 37 | $ 27 |
Fleet leases | 647 | 1,906 | 1,290 | 3,784 |
Freight and other reimbursables | 350 | 531 | 733 | 1,487 |
Total revenues | 27,878 | 20,395 | 54,235 | 33,903 |
Operating costs | ||||
Subcontracted rail services | 2,026 | 2,222 | 4,069 | 4,449 |
Pipeline fees | 5,338 | 4,460 | 10,052 | 6,403 |
Fleet leases | 1,538 | 2,917 | 3,071 | 6,005 |
Freight and other reimbursables | 350 | 553 | 733 | 1,549 |
Selling, general and administrative | 2,856 | 2,233 | 6,620 | 4,450 |
Depreciation and amortization | 4,914 | 1,096 | 9,819 | 2,189 |
Total operating costs | 18,461 | 14,588 | 37,295 | 27,331 |
Operating income | 9,417 | 5,807 | 16,940 | 6,572 |
Interest expense | 2,533 | 995 | 4,716 | 1,987 |
Loss (gain) associated with derivative instruments | (253) | 218 | 1,270 | (1,731) |
Foreign currency transaction gain | (15) | (42) | (145) | (383) |
Income before provision for income taxes | 7,152 | 4,636 | 11,099 | 6,699 |
Provision for income taxes | 1,917 | 1,984 | 3,714 | 2,006 |
Net income | 5,235 | 2,652 | 7,385 | 4,693 |
Net income attributable to limited partner interests | $ 5,131 | $ 2,599 | $ 7,238 | $ 4,599 |
Weighted average limited partner units outstanding (in shares) | 23,153 | 21,318 | 23,128 | 21,322 |
Common Units | ||||
Operating costs | ||||
Net income per common unit (basic and diluted) (USD per share) | $ 0.23 | $ 0.13 | $ 0.32 | $ 0.22 |
Weighted average limited partner units outstanding (in shares) | 14,182 | 10,214 | 13,546 | 10,214 |
Subordinated Units | ||||
Operating costs | ||||
Net income per common unit (basic and diluted) (USD per share) | $ 0.23 | $ 0.13 | $ 0.31 | $ 0.22 |
Weighted average limited partner units outstanding (in shares) | 8,371 | 10,464 | 8,969 | 10,464 |
Related Party | ||||
Revenues | ||||
Fleet leases | $ 891 | $ 1,011 | $ 1,781 | $ 2,221 |
Freight and other reimbursables | 0 | 22 | 0 | 62 |
Operating costs | ||||
Selling, general and administrative | 1,439 | 1,107 | 2,931 | 2,286 |
Terminalling services | ||||
Revenues | ||||
Terminalling services | 23,459 | 14,279 | 45,482 | 22,666 |
Terminalling services | Related Party | ||||
Revenues | ||||
Terminalling services | 1,756 | 1,803 | 3,406 | 1,803 |
Fleet services | ||||
Revenues | ||||
Terminalling services | 69 | 155 | 138 | 311 |
Fleet leases | 647 | 1,906 | 1,290 | 3,784 |
Fleet services | Related Party | ||||
Revenues | ||||
Terminalling services | 684 | 670 | 1,368 | 1,542 |
Fleet leases | $ 891 | $ 1,011 | $ 1,781 | $ 2,221 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 5,235 | $ 2,652 | $ 7,385 | $ 4,693 |
Other comprehensive income (loss) — foreign currency translation | (14) | (147) | 780 | 307 |
Comprehensive income | $ 5,221 | $ 2,505 | $ 8,165 | $ 5,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 7,385 | $ 4,693 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 9,819 | 2,189 |
Loss (gain) associated with derivative instruments | 1,270 | (1,731) |
Settlement of derivative contracts | 1,036 | 1,678 |
Amortization of deferred financing costs | 430 | 319 |
Unit based compensation expense | 1,697 | 1,401 |
Deferred income taxes | (96) | 878 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 207 | 1,241 |
Accounts receivable — related party | 1,760 | (2,046) |
Prepaid expenses and other current assets | (460) | (4,040) |
Accounts payable and accrued expenses | (1,961) | (1,603) |
Accounts payable and accrued expenses — related party | 24 | (642) |
Deferred revenue and other liabilities | 2,729 | 11,762 |
Deferred revenue — related party | (629) | 867 |
Change in restricted cash | (633) | 323 |
Net cash provided by operating activities | 22,578 | 15,289 |
Cash flows from investing activities: | ||
Additions of property and equipment | (246) | (733) |
Purchase of derivative contracts | 0 | (1,167) |
Net cash used in investing activities | (246) | (1,900) |
Cash flows from financing activities: | ||
Distributions | (14,396) | (11,414) |
Vested phantom units used for payment of participant withholding taxes | (77) | 0 |
Proceeds from long-term debt | 10,000 | 12,000 |
Repayment of long-term debt | (18,902) | (16,018) |
Net cash used in financing activities | (23,375) | (15,432) |
Effect of exchange rates on cash | 439 | (318) |
Net change in cash and cash equivalents | (604) | (2,361) |
Cash and cash equivalents – beginning of period | 10,500 | 40,249 |
Cash and cash equivalents – end of period | $ 9,896 | $ 37,888 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 9,896 | $ 10,500 |
Restricted cash | 5,616 | 4,640 |
Accounts receivable, net | 4,229 | 4,333 |
Accounts receivable — related party | 209 | 1,889 |
Prepaid expenses | 10,926 | 10,191 |
Other current assets | 2,375 | 3,908 |
Total current assets | 33,251 | 35,461 |
Property and equipment, net | 134,243 | 133,010 |
Intangible assets, net | 118,222 | 124,581 |
Goodwill | 33,970 | 33,970 |
Other non-current assets | 777 | 1,376 |
Total assets | 320,463 | 328,398 |
Current liabilities | ||
Accounts payable and accrued expenses | 2,303 | 4,092 |
Accounts payable and accrued expenses — related party | 295 | 232 |
Deferred revenue, current portion | 26,575 | 22,158 |
Deferred revenue, current portion — related party | 5,764 | 5,485 |
Other current liabilities | 4,016 | 2,914 |
Total current liabilities | 38,953 | 34,881 |
Long-term debt, net | 233,909 | 239,444 |
Deferred revenue, net of current portion | 956 | 2,022 |
Deferred revenue, net of current portion — related party | 903 | 1,542 |
Deferred income tax liability | 703 | 749 |
Total liabilities | 275,424 | 278,638 |
Commitments and contingencies | ||
General partner units (461,136 outstanding at June 30, 2016 and December 31, 2015) | 80 | 220 |
Accumulated other comprehensive income (loss) | 642 | (138) |
Total partners' capital | 45,039 | 49,760 |
Total liabilities and partners' capital | 320,463 | 328,398 |
Common Units | ||
Current liabilities | ||
Limited partners' capital account | 120,256 | 141,374 |
Class A Units | ||
Current liabilities | ||
Limited partners' capital account | 1,360 | 1,749 |
Subordinated Units | ||
Current liabilities | ||
Limited partners' capital account | $ (77,299) | $ (93,445) |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Jun. 30, 2016 | Dec. 31, 2015 |
General partners' units outstanding (in shares) | 461,136 | 461,136 |
Common Units | ||
Limited partners' units outstanding (in shares) | 14,181,996 | 11,947,127 |
Class A Units | ||
Limited partners' units outstanding (in shares) | 138,750 | 185,000 |
Subordinated Units | ||
Limited partners' units outstanding (in shares) | 8,370,836 | 10,463,545 |
Consolidated Statements of Part
Consolidated Statements of Partners' Capital - USD ($) $ in Thousands | Total | Accumulated other comprehensive income (loss) | Class A Units | Limited PartnerCommon Units | Limited PartnerClass A Units | Limited PartnerSubordinated Units | General Partner | First vesting trancheLimited PartnerCommon Units | First vesting trancheLimited PartnerClass A Units | First vesting trancheLimited PartnerSubordinated Units |
Partners' capital account beginning balance (in units) at Dec. 31, 2014 | 220,000 | 10,213,545 | 220,000 | 10,463,545 | 427,083 | |||||
Partners' capital account beginning balance at Dec. 31, 2014 | $ (18) | $ 127,865 | $ 550 | $ (90,214) | $ 12 | |||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||||
Net income | $ 4,693 | 2,250 | 40 | 2,309 | 94 | |||||
Liability-classified Phantom Units | 499 | $ 1,083 | ||||||||
Forfeited units (in units) | (35,000) | (35,000) | ||||||||
Forfeited units | $ (245) | |||||||||
Distributions | $ (5,477) | $ (99) | $ (5,611) | $ (227) | ||||||
Cumulative translation adjustment | $ 307 | 307 | ||||||||
Partners' capital account ending balance (in units) at Jun. 30, 2015 | 185,000 | 10,213,545 | 185,000 | 10,463,545 | 427,083 | |||||
Partners' capital account ending balance at Jun. 30, 2015 | 33,118 | 289 | $ 125,137 | $ 1,329 | $ (93,516) | $ (121) | ||||
Partners' capital account beginning balance (in units) at Dec. 31, 2015 | 185,000 | 11,947,127 | 185,000 | 10,463,545 | 461,136 | |||||
Partners' capital account beginning balance at Dec. 31, 2015 | 49,760 | (138) | $ 141,374 | $ 1,749 | $ (93,445) | $ 220 | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||||
Conversion of units (in units) | 2,138,959 | (2,092,709) | 46,250 | (46,250) | 2,092,709 | |||||
Conversion of units | $ (18,300) | (871) | $ 19,171 | |||||||
Common units issued for vested phantom units (in units) | 95,910 | |||||||||
Common units issued for vested phantom units | $ (77) | |||||||||
Net income | $ 7,385 | 4,361 | 48 | 2,829 | 147 | |||||
Liability-classified Phantom Units | 1,053 | 534 | ||||||||
Forfeited units (in units) | 0 | |||||||||
Distributions | $ (8,155) | $ (100) | $ (5,854) | $ (287) | ||||||
Cumulative translation adjustment | $ 780 | 780 | ||||||||
Partners' capital account ending balance (in units) at Jun. 30, 2016 | 138,750 | 14,181,996 | 138,750 | 8,370,836 | 461,136 | |||||
Partners' capital account ending balance at Jun. 30, 2016 | $ 45,039 | $ 642 | $ 120,256 | $ 1,360 | $ (77,299) | $ 80 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | ORGANIZATION AND BASIS OF PRESENTATION USD Partners LP and its consolidated subsidiaries, collectively referred to herein as we, us, our, the Partnership and USDP, is a fee-based, growth-oriented master limited partnership formed in 2014 by US Development Group LLC, or USD, through its wholly-owned subsidiary, USD Group LLC, or USDG. We were formed to acquire, develop and operate energy-related logistics assets, including rail terminals and other high-quality and complementary midstream infrastructure. We generate substantially all of our operating cash flow from multi-year, take-or-pay contracts for crude oil terminalling services, such as railcar loading for transportation to end markets, storage and blending in on-site tanks, as well as related logistics services. In addition, we provide our customers with railcars and fleet services related to the transportation of liquid hydrocarbons and biofuels by rail under multi-year, take-or-pay contracts. We do not take ownership of the products that we handle nor do we receive any payments from our customers based on the value of such products. Our common units are traded on the New York Stock Exchange, or NYSE, under the symbol USDP. Basis of Presentation Our accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or GAAP, for interim consolidated financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all the information and disclosures required by GAAP for complete consolidated financial statements. In the opinion of our management, they contain all adjustments, consisting only of normal recurring adjustments, which our management considers necessary to present fairly our financial position as of June 30, 2016 , our results of operations for the three and six months ended June 30, 2016 and 2015 , and our cash flows for the six months ended June 30, 2016 and 2015 . We derived our consolidated balance sheet as of December 31, 2015 , from the audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015 . Our results of operations for the three and six months ended June 30, 2016 and 2015 , should not be taken as indicative of the results to be expected for the full year due to fluctuations in the supply of and demand for crude oil and biofuels, timing and completion of acquisitions, if any, and the impact of fluctuations in foreign currency exchange rates. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto presented in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015 . Foreign Currency Translation A substantial portion of our operations are conducted in Canada and are accounted for in the local currency, the Canadian dollar, which we translate into our reporting currency, the U.S. dollar. We translate most Canadian dollar denominated balance sheet accounts at the end of period exchange rate, while most income statement accounts are translated based on the average exchange rate for the period. Fluctuations in the exchange rate between the Canadian dollar and the U.S. dollar can create variability in the amounts we translate and report in U.S. dollars. Within these consolidated financial statements, we denote amounts denominated in Canadian dollars with "C$" immediately prior to the stated amount. US Development Group LLC USD and its affiliates are engaged in designing, developing, owning and managing large-scale multi-modal logistics centers and energy-related infrastructure across North America. USD indirectly owns both USDG and our general partner and is currently owned by Energy Capital Partners, Goldman Sachs and certain of USD's management team members. Goodwill We test goodwill for impairment annually based on the carrying values of our reporting units, or more frequently if impairment indicators arise that suggest the carrying value of goodwill may be impaired. Our goodwill arose in connection with our acquisition of the Casper terminal in November 2015, and we are not aware of any indicators that would suggest goodwill was impaired at June 30, 2016. We initially intended to test for impairment each year based on the carrying values at the end of the second quarter. However, we determined it to be impracticable to complete the necessary analysis and report the results within the second quarter. As a result, we intend to test for impairment annually based on the carrying values of our reporting units on the first day of the third quarter of each year, or more frequently if impairment indicators arise that suggest the carrying value of goodwill may be impaired. Comparative Amounts We have made certain reclassifications to the amounts reported in the prior year to conform with the current year presentation. None of these reclassifications have an impact on our operating results, cash flows or financial position. |
NET INCOME PER LIMITED PARTNER
NET INCOME PER LIMITED PARTNER INTEREST | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
NET INCOME PER LIMITED PARTNER INTEREST | NET INCOME PER LIMITED PARTNER INTEREST We allocate our net income among our general partner and limited partners using the two-class method in accordance with applicable authoritative accounting guidance. Under the two-class method, we allocate our net income and any net income in excess of distributions to our limited partners, our general partner and the holder of the incentive distribution rights, or IDRs, according to the distribution formula for available cash as set forth in our partnership agreement. We allocate any distributions in excess of earnings for the period to our limited partners and general partner based on their respective proportionate ownership interests in us, as set forth in our partnership agreement after taking into account distributions to be paid with respect to the IDRs. The formula for distributing available cash as set forth in our partnership agreement is as follows: Distribution Targets Portion of Quarterly Distribution Per Unit Percentage Distributed to Limited Partners Percentage Distributed to General Partner (including IDRs) (1) Minimum Quarterly Distribution Up to $0.2875 98% 2% First Target Distribution > $0.2875 to $0.330625 98% 2% Second Target Distribution > $0.330625 to $0.359375 85% 15% Third Target Distribution > $0.359375 to $0.431250 75% 25% Thereafter Amounts above $0.431250 50% 50% (1) Assumes our general partner maintains a 2% general partner interest in us. We determined basic and diluted net income per limited partner unit as set forth in the following tables: Three Months Ended June 30, 2016 Common Units Subordinated Units Class A General Total (in thousands, except per unit amounts) Net income attributable to general and limited partner interests in USD Partners LP (1) $ 3,206 $ 1,893 $ 32 $ 104 $ 5,235 Less: Distributable earnings (2) 4,622 2,727 46 150 7,545 Distributions in excess of earnings $ (1,416 ) $ (834 ) $ (14 ) $ (46 ) $ (2,310 ) Weighted average units outstanding (3) 14,182 8,371 139 461 23,153 Distributable earnings per unit (4) $ 0.33 $ 0.33 $ 0.33 Overdistributed earnings per unit (5) (0.10 ) (0.10 ) (0.10 ) Net income per limited partner unit (basic and diluted) $ 0.23 $ 0.23 $ 0.23 (1) Represents earnings allocated to each class of units based on the actual ownership of the Partnership during the period. (2) Represents the distributions payable for the period based upon the quarterly distribution amount of $0.3150 per unit, or $1.26 per unit on an annualized basis. Amounts presented for each class of unit include a proportionate amount of the $252 thousand distributable to holders of the Equity-classified Phantom Units pursuant to the distribution equivalent rights granted under the USD Partners LP 2014 Long-Term Incentive Plan. (3) Represents the weighted average units outstanding for the period. (4) Represents the total distributable earnings divided by the weighted average number of units outstanding for the period. (5) Represents the distributions in excess of earnings divided by the weighted average number of units outstanding for the period. Three Months Ended June 30, 2015 Common Units Subordinated Units Class A General Total (in thousands, except per unit amounts) Net income attributable to general and limited partner interests in USD Partners LP (1) $ 1,270 $ 1,305 $ 24 $ 53 $ 2,652 Less: Distributable earnings (2) 3,017 3,091 55 126 6,289 Distributions in excess of earnings $ (1,747 ) $ (1,786 ) $ (31 ) $ (73 ) $ (3,637 ) Weighted average units outstanding (3) 10,214 10,464 213 427 21,318 Distributable earnings per unit (4) $ 0.30 $ 0.30 $ 0.26 Overdistributed earnings per unit (5) (0.17 ) (0.17 ) (0.14 ) Net income per limited partner unit (basic and diluted) $ 0.13 $ 0.13 $ 0.12 (1) Represents earnings allocated to each class of units based on the actual ownership of the Partnership during the period. (2) Represents the distributions paid of $0.2900 per unit for the three months ended June 30, 2015, or $1.16 per unit on an annualized basis. Amounts presented for each class of unit include a proportionate amount of the $107 thousand distributed to holders of the Equity-classified Phantom Units pursuant to the distribution equivalent rights granted under the USD Partners LP 2014 Long-Term Incentive Plan. (3) Represents the weighted average units outstanding for the period. (4) Represents the total distributable earnings divided by the weighted average number of units outstanding for the period. (5) Represents the distributions in excess of earnings divided by the weighted average number of units outstanding for the period. Six Months Ended June 30, 2016 Common Units Subordinated Units Class A General Total (in thousands, except per unit amounts) Net income attributable to general and limited partner interests in USD Partners LP (1) $ 4,361 $ 2,829 $ 48 $ 147 $ 7,385 Less: Distributable earnings (2) 9,134 5,391 89 297 14,911 Distributions in excess of earnings $ (4,773 ) $ (2,562 ) $ (41 ) $ (150 ) $ (7,526 ) Weighted average units outstanding (3) 13,546 8,969 152 461 23,128 Distributable earnings per unit (4) $ 0.67 $ 0.60 $ 0.59 Overdistributed earnings per unit (5) (0.35 ) (0.29 ) (0.27 ) Net income per limited partner unit (basic and diluted) $ 0.32 $ 0.31 $ 0.32 (1) Represents earnings allocated to each class of units based on the actual ownership of the Partnership during the period. (2) Represents the distributions paid of $0.3075 per unit with respect to the three months ended March 31, 2016, and $0.3150 payable for the three months ended June 30, 2016, representing a year-to-date distribution amount of $0.6225 per unit. Amounts presented for each class of unit include a proportionate amount of the $247 thousand distributed and $252 thousand distributable to holders of the Equity-classified Phantom Units pursuant to the distribution equivalent rights granted under the USD Partners LP 2014 Long-Term Incentive Plan. (3) Represents the weighted average units outstanding for the period. (4) Represents the total distributable earnings divided by the weighted average number of units outstanding for the period. (5) Represents the distributions in excess of earnings divided by the weighted average number of units outstanding for the period. Six Months Ended June 30, 2015 Common Units Subordinated Units Class A General Total (in thousands, except per unit amounts) Net income attributable to general and limited partner interests in USD Partners LP (1) $ 2,250 $ 2,309 $ 40 $ 94 $ 4,693 Less: Distributable earnings (2) 6,007 6,154 109 251 12,521 Distributions in excess of earnings $ (3,757 ) $ (3,845 ) $ (69 ) $ (157 ) $ (7,828 ) Weighted average units outstanding (3) 10,214 10,464 217 427 21,322 Distributable earnings per unit (4) $ 0.59 $ 0.59 $ 0.50 Overdistributed earnings per unit (5) (0.37 ) (0.37 ) (0.32 ) Net income per limited partner unit (basic and diluted) $ 0.22 $ 0.22 $ 0.18 (1) Represents earnings allocated to each class of units based on the actual ownership of the Partnership during the period. (2) Represents the distributions paid of $0.2875 per unit with respect to the three months ended March 31, 2015, and $0.2900 for the three months ended June 30, 2015, representing a year-to-date distribution amount of $0.5775 per unit. Amounts presented for each class of unit include a proportionate amount of the $219 thousand distributed to holders of the Equity-classified Phantom Units pursuant to the distribution equivalent rights granted under the USD Partners LP 2014 Long-Term Incentive Plan. (3) Represents the weighted average units outstanding for the period. (4) Represents the total distributable earnings divided by the weighted average number of units outstanding for the period. (5) Represents the distributions in excess of earnings divided by the weighted average number of units outstanding for the period. |
CASPER TERMINAL ACQUISITION
CASPER TERMINAL ACQUISITION | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
CASPER TERMINAL ACQUISITION | CASPER TERMINAL ACQUISITION We acquired 100% of the membership interests of Casper Crude to Rail, LLC, which we refer to as the Casper terminal, in November 2015. The Casper terminal primarily consists of a unit train-capable railcar loading facility with capacity in excess of 100,000 barrels per day, six customer-dedicated storage tanks with 900,000 barrels of total capacity and a six -mile, 24 -inch diameter pipeline with a direct connection from Spectra Energy Partners' Express Pipeline. We acquired all of the issued and outstanding membership interests of the Casper terminal in exchange for approximately $210.4 million in cash and 1,733,582 of our unregistered common units representing limited partner interests. We have included the results of operations of the Casper terminal in our results of operations from the acquisition date. For the three and six months ended June 30, 2016 , the Casper terminal generated revenues of $8.0 million and $16.0 million , and net income of $2.6 million and $5.0 million , respectively. The following table presents our unaudited pro forma consolidated financial information as if the closing of the Casper terminal acquisition occurred on January 1, 2015 : Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 (in thousands except per unit amounts) Total revenues $ 29,225 $ 51,057 Operating income $ 9,002 $ 12,717 Net income $ 4,492 $ 7,759 Earnings per common unit (basic and diluted) $ 0.20 $ 0.34 The unaudited pro forma financial information presented above has been prepared by combining our historical results and the historical results of the Casper terminal and further reflects the effect of purchase accounting adjustments and the elimination of transaction costs, among other items. Other significant pro forma adjustments have been made to take into account, from the beginning of the period, additional depreciation and amortization of the fair value of the noncurrent assets resulting from the application of purchase accounting, as well as the additional interest expense we would have incurred from the incremental borrowings on our revolving credit facility. This pro forma information is not necessarily indicative of the actual results of operations that would have occurred if we had acquired the Casper terminal on January 1, 2015, or that may result in the future and does not reflect potential synergies, integration costs or other such costs and savings. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Our property and equipment consist of the following as of the dates indicated: June 30, 2016 December 31, 2015 Estimated Useful Lives (Years) (in thousands) Land $ 9,743 $ 9,549 N/A Trackage and facilities 114,962 110,557 20 Pipeline 10,295 10,295 20 Equipment 8,589 8,237 5-10 Furniture 45 43 5 Total property and equipment 143,634 138,681 Accumulated depreciation (12,195 ) (8,326 ) Construction in progress 2,804 2,655 Property and equipment, net $ 134,243 $ 133,010 The amounts classified as “Construction in progress” are excluded from amounts being depreciated. These amounts represent property that is not yet ready to be placed into productive service as of the respective consolidated balance sheet date. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS Our intangible assets originated from our acquisition of the Casper terminal and consist of the following as of the dates indicated: June 30, 2016 December 31, 2015 (in thousands) Carrying amount: Customer service agreements $ 125,960 $ 125,960 Other 106 106 Total carrying amount 126,066 126,066 Accumulated amortization: Customer service agreements (7,837 ) (1,484 ) Other (7 ) (1 ) Total accumulated amortization (7,844 ) (1,485 ) Total intangible assets, net $ 118,222 $ 124,581 Amortization expense associated with intangible assets totaled approximately $3.2 million and $6.4 million , respectively, for the three and six months ended June 30, 2016 . |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT We have a $400 million senior secured credit agreement, or the Credit Agreement, comprised of a $300 million revolving credit facility, or the Revolving Credit Facility, and a $100 million term loan (borrowed in Canadian dollars), the Term Loan Facility, with Citibank, N.A., as administrative agent, and a syndicate of lenders. The Credit Agreement is a five year committed facility that matures on October 15, 2019. Our Revolving Credit Facility and any letters of credit issued thereunder are available for working capital, capital expenditures, permitted acquisitions and general partnership purposes, including distributions. As we make payments on the Term Loan Facility, availability equal to the U.S. dollar equivalent amount of the payments is automatically transferred from the Term Loan Facility to the Revolving Credit Facility, ultimately increasing the availability on our Revolving Credit Facility to $400 million once the Term Loan Facility is fully repaid. In addition, we have the ability to increase the maximum amount of credit available under the Credit Agreement, as amended, by an aggregate amount of up to $100 million to a total facility size of $500 million , subject to receiving increased commitments from lenders or other financial institutions and satisfaction of certain conditions. The Revolving Credit Facility includes an aggregate $20 million sublimit for standby letters of credit and a $20 million sublimit for swingline loans. Obligations under the Revolving Credit Facility are guaranteed by our restricted subsidiaries and are secured by a first priority lien on our assets and those of our restricted subsidiaries, other than certain excluded assets. The Term Loan Facility was used to fund a $100 million distribution to USDG in connection with the closing of our IPO and is guaranteed by USDG. The guaranty by USDG includes a covenant that USDG maintain a net worth (without taking into account its interests in us, either directly or indirectly) greater than the outstanding amount of the term loan. In the event the USDG net worth covenant is breached and not cured within a certain amount of time, the interest rate on the term loan will be increased by an additional 1.0% . Amounts outstanding on the Term Loan Facility are not subject to any scheduled repayment prior to its maturity on July 14, 2019. Mandatory prepayments of the term loan are required from certain non-ordinary course asset sales, subject to customary exceptions and reinvestment rights. The average interest rate on our outstanding indebtedness was 3.43% at June 30, 2016 , and 2.71% at December 31, 2015 . At June 30, 2016 , we were in compliance with the covenants set forth in our Credit Agreement. We determined the capacity available to us under the terms of our Credit Agreement was as follows as of the specified dates: June 30, 2016 December 31, 2015 (in millions) Aggregate borrowing capacity under Credit Agreement $ 400.0 $ 400.0 Less: Term Loan Facility amounts outstanding 30.6 41.5 Revolving Credit Facility amounts outstanding 206.0 201.0 Letters of credit outstanding — — Available under Credit Agreement (1) $ 163.4 $ 157.5 (1) Pursuant to the terms of our Credit Agreement, our borrowing capacity at June 30, 2016 is limited to 5.0 times our trailing 12 -month Consolidated EBITDA, which declines to 4.5 times after June 30, 2016 . Interest expense associated with our operations was as follows for the specified periods: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in thousands) Interest expense on the Credit Agreement $ 2,318 $ 835 $ 4,286 $ 1,668 Amortization of deferred financing costs 215 160 430 319 Total interest expense $ 2,533 $ 995 $ 4,716 $ 1,987 Details regarding the composition of our long-term debt balances were as follows as of the specified dates: June 30, 2016 December 31, 2015 (in thousands) Term Loan Facility $ 30,574 $ 41,539 Revolving Credit Facility 206,000 201,000 Less: Deferred financing costs, net (2,665 ) (3,095 ) Total long-term debt, net $ 233,909 $ 239,444 |
DEFERRED REVENUE
DEFERRED REVENUE | 6 Months Ended |
Jun. 30, 2016 | |
Deferred Revenue Disclosure [Abstract] | |
DEFERRED REVENUE | DEFERRED REVENUE Our deferred revenue includes amounts we have received in cash from customers as payment for their minimum monthly commitment fees under take-or-pay contracts, where such payments exceed the charges implied by the customer's actual throughput based on contractual rates set forth in our terminalling services agreements. We grant customers of our Hardisty terminal a credit for periods up to six months, which may be used to offset fees on throughput in excess of their minimum monthly commitments in future periods, to the extent capacity is available for the excess volume. We refer to these credits as make-up rights. We defer revenue associated with make-up rights until the earlier of when the throughput is utilized, the make-up rights expire, or when it is determined that the likelihood that the customer will utilize the make-up right is remote. A majority of our deferred revenue derived from the make-up rights provisions of our terminalling services agreements are denominated in Canadian dollars and translated into U.S. dollars at the exchange rate in effect at the end of the period. As a result, the balance of our deferred revenue may vary from period to period due to changes in the exchange rate between the U.S. dollar and the Canadian dollar. Our deferred revenues also include amounts collected in advance from customers of our Fleet services business, which will be recognized as revenue when earned pursuant to the terms of our contractual arrangements. We have likewise prepaid the rent on our railcar leases that are associated with these deferred revenues, which we will recognize as expense concurrently with our recognition of the associated revenue. The following table provides details of our deferred revenue with unrelated customers as reflected in our consolidated balance sheets as of the dates indicated: June 30, 2016 December 31, 2015 (in thousands) Customer prepayments, current portion (1) $ 2,875 $ 1,763 Minimum monthly commitment fees 23,700 20,395 Total deferred revenue, current portion $ 26,575 $ 22,158 Customer prepayments (1) $ 956 $ 2,022 Total deferred revenue, net of current portion $ 956 $ 2,022 (1) Represents amounts associated with lease payments received in advance from our Fleet services customers. Refer to Note 9— Transactions with Related Parties for a discussion of deferred revenues associated with related parties included in our consolidated balance sheets. |
COLLABORATIVE ARRANGEMENT
COLLABORATIVE ARRANGEMENT | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
COLLABORATIVE ARRANGEMENT | COLLABORATIVE ARRANGEMENT We entered into a facilities connection agreement in 2014 with Gibson Energy Partnership, or Gibson, under which Gibson developed, constructed and operates a pipeline and related facilities connected to our Hardisty terminal. Gibson’s storage terminal is the exclusive means by which our Hardisty terminal receives crude oil. Subject to certain limited exceptions regarding manifest train facilities, our Hardisty terminal is the exclusive means by which crude oil from Gibson's Hardisty storage terminal may be transported by rail. We remit pipeline fees to Gibson for the transportation of crude oil to our Hardisty terminal based on a predetermined formula. For the three months ended June 30, 2016 and 2015 , we recorded $5.3 million and $4.5 million , respectively, and for the six months ended June 30, 2016 and 2015 , we recorded $10.1 million and $6.4 million , respectively, as "Pipeline fees" in our consolidated statements of income. Additionally, we had prepaid pipeline fees of $7.1 million and $6.4 million as of June 30, 2016 and December 31, 2015 , respectively, included in "Prepaid expenses" on our consolidated balance sheets, which will be recognized as expense concurrently with the recognition of revenue that we deferred in connection with our minimum monthly volume commitments. |
TRANSACTIONS WITH RELATED PARTI
TRANSACTIONS WITH RELATED PARTIES | 6 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
TRANSACTIONS WITH RELATED PARTIES | TRANSACTIONS WITH RELATED PARTIES Nature of Relationship with Related Parties USD is engaged in designing, developing, owning and managing large-scale multi-modal logistics centers and other energy-related midstream infrastructure across North America. USD is also the sole owner of USDG and the ultimate parent of our general partner. USD is owned by Energy Capital Partners, Goldman Sachs and certain members of its management. USDG is the sole owner of our general partner and currently retains an aggregate 49.9% limited partner interest in us. USDG also provides us with general and administrative support services necessary for the operation and management of our business. USD Partners GP LLC, our general partner, currently holds a 2.0% general partner interest in us, as well as all of our incentive distribution rights. Pursuant to our partnership agreement, our general partner is responsible for our overall governance and operations. Omnibus Agreement We are a party to an omnibus agreement with USD, USDG and certain of their subsidiaries, including our general partner, pursuant to which we obtain and make payments for specified services provided to us and for out-of-pocket costs incurred on our behalf. We pay USDG, in equal monthly installments, the annual amount USDG estimates will be payable by us during the calendar year for providing services for our benefit. The omnibus agreement provides that this amount may be adjusted annually to reflect, among other things, changes in the scope of the general and administrative services provided to us due to a contribution, acquisition or disposition of assets by us or our subsidiaries, or for changes in any law, rule or regulation applicable to us, which affects the cost of providing the general and administrative services. We also reimburse USDG for any out-of-pocket costs and expenses incurred on our behalf in providing general and administrative services to us. This reimbursement is in addition to our reimbursement of our general partner and its affiliates for certain costs and expenses incurred on our behalf for managing and controlling our business and operations, as required by our partnership agreement. The total amounts charged to us under the omnibus agreement for the three months ended June 30, 2016 and 2015 , were $1.4 million and $1.1 million , respectively, and for the six months ended June 30, 2016 and 2015 , were $2.9 million and $2.3 million , respectively, which amounts are included in "Selling, general and administrative — related party" in our consolidated statements of income. At June 30, 2016 and December 31, 2015 , we had balances payable related to these costs of $0.3 million and $0.2 million , respectively, recorded as "Accounts payable — related party" in our consolidated balance sheets. Assignment of costs During the first quarter of 2015, USDG assumed the obligation to pay a portion of the freight costs associated with the movement of empty railcars related to a customer contract entered into in June 2013, prior to our formation. The assumption was effective as of January 1, 2015, and included reimbursement to us for any amounts we paid subsequent to the effective date. We did not receive any reimbursements pursuant to the terms of the assumption agreement during the three and six months ended June 30, 2016 . During the three and six months ended June 30, 2015 , we incurred reimbursable freight costs of $1.3 million and $2.9 million , respectively. As of June 30, 2016 and December 31, 2015 , we had no amounts receivable from USDG with respect to these costs. Variable Interest Entities We have entered into purchase, assignment and assumption agreements to assign payment and performance obligations for certain operating lease agreements with lessors, as well as customer fleet service payments related to these operating leases, with LRT Logistics Funding LLC, USD Fleet Funding LLC, USD Fleet Funding Canada Inc., and USD Logistics Funding Canada Inc., which are unconsolidated entities in which we have a variable interest, collectively referred to as the VIEs. A member of the board of directors of USD exercises control over the VIEs. We are not the primary beneficiary of the VIEs, as we do not have power to direct the activities that most significantly affect the economic performance of the VIEs, nor do we have the power to remove the managing member under the terms of the VIE's limited liability company agreements. Accordingly, we do not consolidate the results of the VIEs in our consolidated financial statements. The following tables summarize the total assets and liabilities between us and the VIEs as reflected in our consolidated balance sheets, as well as our maximum exposure to losses from entities in which we have a variable interest, but are not the primary beneficiary. Generally, our maximum exposure to losses is limited to amounts receivable for services we provided, reduced by any deferred revenues. June 30, 2016 Total assets Total liabilities Maximum exposure to loss (in thousands) Accounts receivable — related party $ 209 $ — $ — Deferred revenue, current portion — related party — 1,288 — Deferred revenue, net of current portion — related party — 903 — $ 209 $ 2,191 $ — December 31, 2015 Total assets Total liabilities Maximum exposure to loss (in thousands) Accounts receivable — related party $ 196 $ — $ — Deferred revenue, current portion — related party — 1,287 — Deferred revenue, net of current portion — related party — 1,542 — $ 196 $ 2,829 $ — Related party sales to the VIEs were $0.4 million and $0.5 million during the three months ended June 30, 2016 and 2015 , respectively, and $0.8 million and $1.1 million during the six months ended June 30, 2016 and 2015 , respectively. These sales are recorded in "Fleet services — related party" in the accompanying consolidated statements of income. Related Party Revenue and Deferred Revenue We have agreements with USD Marketing LLC, or USDM, a wholly-owned subsidiary of USDG, to provide terminalling and fleet services, which include reimbursement for certain out-of-pocket expenses, related to our Hardisty terminal operations. The terms and conditions of these agreements are similar to the terms and conditions of our agreements with unrelated parties at the Hardisty terminal. Information about related party sales to USDM is presented below: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in thousands) Terminalling services — related party $ 1,756 $ 1,803 $ 3,406 $ 1,803 Fleet leases — related party 891 1,011 1,781 2,221 Fleet services — related party 279 214 558 472 Freight and other reimbursables — related party — 22 — 62 $ 2,926 $ 3,050 $ 5,745 $ 4,558 As of June 30, 2016 , we had no amounts receivable from USDM, and had $1.7 million as of December 31, 2015 , recorded in "Accounts receivable — related party." We also had deferred revenue related to USDM recorded in "Deferred revenue, current portion — related party" of $4.5 million and $4.2 million as of June 30, 2016 and December 31, 2015 , respectively. Cash Distributions During the six months ended June 30, 2016 , we paid the following aggregate cash distributions to USDG as a holder of our common units and the sole owner of our subordinated units and to USD Partners GP LLC for their general partner interest. Distribution Declaration Date Record Date Distribution Payment Date Amount Paid to USDG Amount Paid to USD Partners GP LLC (in thousands) February 4, 2016 February 15, 2016 February 19, 2016 $ 3,467 $ 138 April 28, 2016 May 9, 2016 May 13, 2016 3,554 142 $ 7,021 $ 280 Transition Services Agreement In connection with our acquisition of the Casper terminal in November 2015, we entered into a transition services agreement with Cogent Energy Solutions, LLC, or Cogent, pursuant to which Cogent provided certain accounting, administrative, customer support and information technology support services to the Casper terminal for three months following the closing date, while we transitioned such services to our management. Two officers of an affiliate of our general partner are the principal owners of Cogent, and as such, are considered to be beneficiaries of this agreement. Pursuant to the terms of this agreement, we incurred approximately $52 thousand of expenses for the six months ended June 30, 2016 . |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES From time to time, we may be involved in legal, tax, regulatory and other proceedings in the ordinary course of business. We do not believe that we are currently a party to any such proceedings that will have a material adverse impact on our financial condition or results of operations. In connection with the railcar services we provide, we regularly incur railcar cleanup and repair costs upon our return of these railcars to the lessors. We typically pass such costs on to our customers pursuant to the terms of our lease agreements with them. A legacy customer related to a terminal sold by USD prior to our IPO returned over 160 railcars to us in 2014, approximately 130 of which the lessors claim require additional cleaning and repair from alleged corrosion. We are currently in discussions with the lessors and our customer regarding the validity of these additional costs. We believe that our customer will ultimately be responsible for any costs associated with these returns, and USD has agreed to indemnify us to the extent that we are unable to recover any such costs from our customer. |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING We manage our businesses in two reportable segments: Terminalling services and Fleet services. The Terminalling services segment charges minimum monthly commitment fees under multi-year take-or-pay contracts to load various grades of crude oil into railcars, as well as fixed fees per gallon to transload ethanol from railcars, including related logistics services. The Fleet services segment provides customers with railcars and fleet services related to the transportation of liquid hydrocarbons and biofuels by rail under long-term, take-or-pay contracts. Corporate activities are not considered a reportable segment, but are included to present corporate and financing transactions which are not allocated to our established reporting segments. Our segments offer different services and are managed accordingly. Our chief operating decision maker, or CODM, regularly reviews financial information about both segments in order to allocate resources and evaluate performance. Our CODM assesses segment performance based on the cash flows produced by our established reporting segments using Segment Adjusted EBITDA. We define Segment Adjusted EBITDA as Net cash provided by operating activities adjusted for changes in working capital items, changes in restricted cash, interest expense, provision for income taxes, foreign currency transaction gains and losses, adjustments related to deferred revenue associated with minimum monthly commitment fees and other items which do not affect the underlying cash flows produced by our businesses. The following tables summarize our reportable segment data: Three Months Ended June 30, 2016 Terminalling Fleet Corporate Total (in thousands) Revenues Terminalling services $ 23,459 $ — $ — $ 23,459 Terminalling services — related party 1,756 — — 1,756 Railroad incentives 22 — — 22 Fleet leases — 647 — 647 Fleet leases — related party — 891 — 891 Fleet services — 69 — 69 Fleet services — related party — 684 — 684 Freight and other reimbursables 19 331 — 350 Freight and other reimbursables — related party — — — — Total revenues 25,256 2,622 — 27,878 Operating costs Subcontracted rail services 2,026 — — 2,026 Pipeline fees 5,338 — — 5,338 Fleet leases — 1,538 — 1,538 Freight and other reimbursables 19 331 — 350 Selling, general and administrative 1,748 298 2,249 4,295 Depreciation and amortization 4,914 — — 4,914 Total operating costs 14,045 2,167 2,249 18,461 Operating income (loss) 11,211 455 (2,249 ) 9,417 Interest expense 352 — 2,181 2,533 Gain associated with derivative instruments (253 ) — — (253 ) Foreign currency transaction loss (gain) 5 (20 ) — (15 ) Provision for (benefit from) income taxes 1,948 (32 ) 1 1,917 Net income (loss) $ 9,159 $ 507 $ (4,431 ) $ 5,235 Goodwill $ 33,970 $ — $ — $ 33,970 Three Months Ended June 30, 2015 Terminalling Fleet Corporate Total (in thousands) Revenues Terminalling services $ 14,279 $ — $ — $ 14,279 Terminalling services — related party 1,803 — — 1,803 Railroad incentives 18 — — 18 Fleet leases — 1,906 — 1,906 Fleet leases — related party — 1,011 — 1,011 Fleet services — 155 — 155 Fleet services — related party — 670 — 670 Freight and other reimbursables — 531 — 531 Freight and other reimbursables — related party — 22 — 22 Total revenues 16,100 4,295 — 20,395 Operating costs Subcontracted rail services 2,222 — — 2,222 Pipeline fees 4,460 — — 4,460 Fleet leases — 2,917 — 2,917 Freight and other reimbursables — 553 — 553 Selling, general and administrative 1,248 205 1,887 3,340 Depreciation and amortization 1,096 — — 1,096 Total operating costs 9,026 3,675 1,887 14,588 Operating income (loss) 7,074 620 (1,887 ) 5,807 Interest expense 572 — 423 995 Loss associated with derivative instruments 218 — — 218 Foreign currency transaction loss (gain) 8 (50 ) — (42 ) Provision for income taxes 1,973 10 1 1,984 Net income (loss) $ 4,303 $ 660 $ (2,311 ) $ 2,652 Six Months Ended June 30, 2016 Terminalling Fleet Corporate Total (in thousands) Revenues Terminalling services $ 45,482 $ — $ — $ 45,482 Terminalling services — related party 3,406 — — 3,406 Railroad incentives 37 — — 37 Fleet leases — 1,290 — 1,290 Fleet leases — related party — 1,781 — 1,781 Fleet services — 138 — 138 Fleet services — related party — 1,368 — 1,368 Freight and other reimbursables 19 714 — 733 Freight and other reimbursables — related party — — — — Total revenues 48,944 5,291 — 54,235 Operating costs Subcontracted rail services 4,069 — — 4,069 Pipeline fees 10,052 — — 10,052 Fleet leases — 3,071 — 3,071 Freight and other reimbursables 19 714 — 733 Selling, general and administrative 3,797 547 5,207 9,551 Depreciation and amortization 9,819 — — 9,819 Total operating costs 27,756 4,332 5,207 37,295 Operating income (loss) 21,188 959 (5,207 ) 16,940 Interest expense 682 — 4,034 4,716 Loss associated with derivative instruments 1,270 — — 1,270 Foreign currency transaction gain (75 ) (70 ) — (145 ) Provision for (benefit from) income taxes 3,731 (18 ) 1 3,714 Net income (loss) $ 15,580 $ 1,047 $ (9,242 ) $ 7,385 Goodwill $ 33,970 $ — $ — $ 33,970 Six Months Ended June 30, 2015 Terminalling Fleet Corporate Total (in thousands) Revenues Terminalling services $ 22,666 $ — $ — $ 22,666 Terminalling services — related party 1,803 — — 1,803 Railroad incentives 27 — — 27 Fleet leases — 3,784 — 3,784 Fleet leases — related party — 2,221 — 2,221 Fleet services — 311 — 311 Fleet services — related party — 1,542 — 1,542 Freight and other reimbursables — 1,487 — 1,487 Freight and other reimbursables — related party — 62 — 62 Total revenues 24,496 9,407 — 33,903 Operating costs Subcontracted rail services 4,449 — — 4,449 Pipeline fees 6,403 — — 6,403 Fleet leases — 6,005 — 6,005 Freight and other reimbursables — 1,549 — 1,549 Selling, general and administrative 2,542 464 3,730 6,736 Depreciation and amortization 2,189 — — 2,189 Total operating costs 15,583 8,018 3,730 27,331 Operating income (loss) 8,913 1,389 (3,730 ) 6,572 Interest expense 1,174 — 813 1,987 Gain associated with derivative instruments (1,731 ) — — (1,731 ) Foreign currency transaction loss (gain) 54 (27 ) (410 ) (383 ) Provision for income taxes 1,980 25 1 2,006 Net income (loss) $ 7,436 $ 1,391 $ (4,134 ) $ 4,693 Segment Adjusted EBITDA The following table provides a reconciliation of Segment Adjusted EBITDA to Net cash provided by operating activities: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in thousands) Segment Adjusted EBITDA Terminalling services $ 17,095 $ 10,504 $ 33,230 $ 21,160 Fleet services 455 620 959 1,389 Corporate activities (1) (1,280 ) (1,213 ) (3,510 ) (2,329 ) Total Adjusted EBITDA 16,270 9,911 30,679 20,220 Add (deduct): Amortization of deferred financing costs 215 160 430 319 Deferred income taxes (50 ) 878 (96 ) 878 Changes in accounts receivable and other assets (458 ) 2,249 1,507 (4,845 ) Changes in accounts payable and accrued expenses (1,112 ) (1,207 ) (1,937 ) (2,245 ) Changes in deferred revenue and other liabilities 1,555 3,118 2,100 12,629 Change in restricted cash 1,793 (837 ) (633 ) 323 Interest expense (2,533 ) (995 ) (4,716 ) (1,987 ) Provision for income taxes (1,917 ) (1,984 ) (3,714 ) (2,006 ) Foreign currency transaction gain (2) 15 42 145 383 Deferred revenue associated with minimum monthly commitment fees (3) (424 ) (1,550 ) (1,187 ) (8,380 ) Net cash provided by operating activities $ 13,354 $ 9,785 $ 22,578 $ 15,289 (1) Corporate activities represent corporate and financing transactions that are not allocated to our established reporting segments. (2) Represents foreign exchange transactions gains or losses associated with activities between our U.S. and Canadian subsidiaries. (3) Represents deferred revenue associated with minimum monthly commitment fees in excess of throughput utilized, which fees are not refundable to our customers. Amounts presented are net of: (a) the corresponding prepaid Gibson pipeline fee that will be recognized as expense concurrently with the recognition of revenue; (b) revenue recognized in the current period that was previously deferred; and (c) expense recognized for previously prepaid Gibson pipeline fees, which correspond with the revenue recognized that was previously deferred. Refer to additional discussion of deferred revenue in Note 7 of these consolidated financial statements. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES U.S. federal and state income taxes We are treated as a partnership for U.S. federal and most state income tax purposes, with each partner being separately taxed on their share of our taxable income. One of our subsidiaries, USD Rail LP, has elected to be classified as an entity taxable as a corporation for U.S. federal income tax purposes. We are also subject to state franchise tax in the state of Texas, which is treated as an income tax under the applicable accounting guidance. Our U.S. federal income tax expense for the three and six months ended June 30, 2016 , is based upon our estimated annual effective federal income tax rate of 34% , as applied to USD Rail LP's taxable losses of $0.9 million and $1.2 million , respectively. As a result of these losses, we did not record a provision for U.S. federal income tax with respect to these periods. For the three and six months ended June 30, 2015 , we utilized U.S. federal net operating loss carryforwards to offset our taxable income of $0.4 million and $0.7 million , respectively. As such, our U.S. provision for income tax during those periods consisted only of state franchise tax. Foreign income taxes Our Canadian operations are conducted through entities that are subject to Canadian federal and provincial income taxes. The Canadian federal income tax on business income is currently 15% . In June 2015, the Canadian province of Alberta enacted a tax rate increase which raised income tax rates on Alberta businesses from a previous rate of 10% to an effective rate of 11% for all of 2015, further increasing to 12% beginning on January 1, 2016. As a result, we recognized income tax liabilities and expenses in our consolidated financial statements based upon the combined federal and provincial income tax rate of 27% as applied to the pretax book income of our Canadian operations for the three and six months ended June 30, 2016 . The combined rate was also used to compute deferred income tax expense, which is the result of temporary differences that are expected to reverse in the future. Due to our use of $1.5 million and $2.6 million of net operating loss carryforwards to offset our taxable income for the three and six months ended June 30, 2015 , we had effective Canadian income tax rates of 18% and 16% , respectively, for those periods. Combined effective income tax rate We determine our 2016 income tax expense based upon our estimated annual effective income tax rate of approximately 25% on a consolidated basis for fiscal year 2016, which rate is attributable to the multiple domestic and foreign tax jurisdictions to which we are subject. Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in thousands) Current income tax expense U.S. federal income tax $ — $ — $ — $ — State income tax (benefit) (7 ) 21 30 43 Canadian federal and provincial income taxes 1,974 1,085 3,780 1,085 Total current income tax expense 1,967 1,106 3,810 1,128 Deferred income tax Canadian federal and provincial income tax change (50 ) 878 (96 ) 878 Total change in deferred income tax (50 ) 878 (96 ) 878 Total income tax expense $ 1,917 $ 1,984 $ 3,714 $ 2,006 The reconciliation between income tax expense based on the U.S. federal statutory income tax rate and our effective income tax expense is presented below: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in thousands) Income tax expense at the U.S. federal statutory rate $ 2,432 $ 1,577 $ 3,774 $ 2,278 Loss attributable to partnership not subject to income tax 215 551 1,159 420 Foreign income tax rate differential (515 ) (583 ) (959 ) (667 ) Other (94 ) (18 ) (62 ) (18 ) State income tax (benefit) (7 ) 21 30 43 Change in valuation allowance (114 ) 436 (228 ) (50 ) Total income tax expense $ 1,917 $ 1,984 $ 3,714 $ 2,006 We have adopted the provisions of ASU 2015-17 and, in accordance with the guidance of this standard, we have classified all deferred income tax liabilities as non-current in our consolidated balance sheets. Our deferred income tax reflects the income tax effect of differences between the carrying amounts of our assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Major components of deferred income tax assets and liabilities associated with our operations were as follows as of the specified dates: June 30, 2016 U.S. Foreign Total (in thousands) Deferred income tax assets Deferred revenues $ 631 $ — $ 631 Capital carryforwards — 454 454 Operating loss carryforwards 407 — 407 Deferred income tax liabilities Prepaid expenses (750 ) — (750 ) Property and equipment — (703 ) (703 ) Total deferred tax 1,788 1,157 2,945 Valuation allowance (288 ) (454 ) (742 ) Net deferred income tax liability $ 1,500 $ 703 $ 2,203 December 31, 2015 U.S. Foreign Total (in thousands) Deferred income tax assets Deferred revenues $ 1,212 $ — $ 1,212 Capital carryforwards — 424 424 Operating loss carryforwards 7 — 7 Deferred income tax liabilities Prepaid expenses (673 ) — (673 ) Property and equipment — (749 ) (749 ) Total deferred tax 1,892 1,173 3,065 Valuation allowance (546 ) (424 ) (970 ) Net deferred income tax liability $ 1,346 $ 749 $ 2,095 Our available Canadian loss carryforward was approximately $5.7 million and $4.9 million as of June 30, 2016 and December 31, 2015 , respectively, and will begin expiring in 2033. Our U.S. loss carryforward applicable to USD Rail LP was $1.2 million as of June 30, 2016, and will begin expiring in 2036. We have not recognized a benefit for these U.S. and Canadian loss carryforwards, as we currently consider it to be more likely than not that the benefits from the loss carryforwards will not be realized. We are nearing completion of a study we commissioned to evaluate the appropriate allocation of return, which is based on risk management and performance of functions associated with our foreign subsidiaries. We expect to conclude this study in the third quarter of 2016. Although we can make no assurances regarding the outcome of this study or the results, we may be able to reduce the income taxes we are assessed in the event we determine that an available tax position is more likely than not to sustain a challenge by the tax authorities. We have estimated that the potential reduction to our income tax expense, if any, could be up to approximately $4.5 million annually, including our 2016 income tax expense, subject to fluctuations in the exchange rate between the U.S. dollar and the Canadian dollar. Additionally, we anticipate the results of this study to favorably affect the 2015 foreign income tax returns we expect to file. We are subject to examination by the taxing authorities for the years ended December 31, 2014 and 2015. The results of such examinations may impact us as the results of any findings could be passed down to us. USD has agreed to indemnify us for all federal, state and local tax liabilities for periods preceding the closing date of our initial public offering. Neither we nor our Canadian operations were under examination as of June 30, 2016 and December 31, 2015 . We did not have any unrecognized income tax benefits or any income tax reserves for uncertain tax positions as of June 30, 2016 and December 31, 2015 . |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS Our net income and cash flows are subject to fluctuations resulting from changes in interest rates on our variable rate debt obligations and foreign currency exchange rates, particularly with respect to the U.S. dollar and the Canadian dollar. At June 30, 2016 and December 31, 2015 , we did not employ any derivative financial instruments to manage our exposure to fluctuations in interest rates, although we may use derivative financial instruments, including swaps, options and other financial instruments with similar characteristics, to manage this exposure in the future. A significant portion of the cash flows we produce are derived from our Hardisty terminal operations in the province of Alberta, Canada, which generate cash flows denominated in Canadian dollars. As a result, fluctuations in the exchange rate between the Canadian dollar and the U.S. dollar could have a significant effect on our results of operations, cash flows and financial position. We endeavor to limit our foreign currency risk exposure with derivative financial instruments. Specifically, we utilize foreign currency collar derivative contracts, representing written call options and purchased put options, as well as forward contracts, to reduce these risks. Economically, the derivatives set an effective exchange rate for a specified value of Canadian cash flows as set forth in the derivative contracts. All of our derivative financial instruments are employed in connection with an underlying asset, liability and/or forecasted transaction and are not entered into for speculative purposes. In April 2016, we entered into four separate forward contracts with an aggregate notional amount of C$33.5 million to manage our exposure to fluctuations in the exchange rate between the Canadian dollar and the U.S. dollar resulting from our Canadian operations during the 2017 calendar year. Each forward contract effectively fixes the exchange rate we will receive for each Canadian dollar we sell to the counterparty. One of these forward contracts will settle at the end of each fiscal quarter during 2017 and secures an exchange rate where a Canadian dollar is exchanged for an amount between 0.7804 and 0.7809 U.S. dollars. In June 2015, we entered into four separate collar arrangements with an aggregate notional value of C$32.0 million , which are scheduled to settle at the end of each fiscal quarter during 2016, each having a notional value ranging between C$7.9 million and C$8.1 million . These derivative contracts were executed to secure cash flows totaling C$32.0 million at an exchange rate range where a Canadian dollar is exchanged for an amount between 0.84 and 0.86 U.S. dollars. Derivative Positions We record all of our derivative financial instruments at their fair values in our consolidated balance sheets, which were as follows on the specified dates: June 30, 2016 December 31, 2015 (in thousands) Other current assets $ 1,248 $ 3,705 Other non-current assets 151 — $ 1,399 $ 3,705 We have not designated our derivative financial instruments as hedges of our foreign currency rate exposures. As a result, changes in the fair value of these derivatives are recorded as "Loss (gain) associated with derivative instruments" in our consolidated statements of income. The gains or losses associated with changes in the fair value of our foreign currency derivative contracts do not affect our cash flows until the underlying contract is settled by making or receiving a payment to or from the counterparty. In connection with our derivative activities, we recognized the following amounts during the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in thousands) Loss (gain) associated with derivative instruments $ (253 ) $ 218 $ 1,270 $ (1,731 ) We determine the fair value of our derivative financial instruments using third party pricing information that is derived from observable market inputs, which we classify as level 2 with respect to the fair value hierarchy. The following tables present summarized information about the fair values of our outstanding foreign currency contracts: June 30, 2016 Notional (C$) Forward Rate (1) Market Price (1) Fair Value (in thousands) Forward contracts maturing in 2017 March 31, 2017 C$ 8,300,000 0.7804 0.7715 $ 74 June 30, 2017 C$ 8,400,000 0.7805 0.7716 75 September 29, 2017 C$ 8,400,000 0.7807 0.7717 75 December 29, 2017 C$ 8,400,000 0.7809 0.7718 76 Total $ 300 (1) Forward rates and market prices are denoted in amounts where a Canadian dollar is exchanged for the indicated amount of U.S. dollars. The forward rate represents the rate we will receive upon settlement and the market price represents the rate we would expect to pay had the contract been settled on June 30, 2016 . June 30, 2016 December 31, 2015 Notional (C$) Strike Price (1) Market Price (1) Fair Value Fair Value (in thousands) Option contracts maturing in 2016 March 31, 2016 Puts (purchased) C$ 7,907,580 0.8400 — $ — $ 921 March 31, 2016 Calls (written) C$ 7,907,580 0.8600 — — — June 30, 2016 Puts (purchased) C$ 7,939,530 0.8400 — — 921 June 30, 2016 Calls (written) C$ 7,939,530 0.8600 — — — September 30, 2016 Puts (purchased) C$ 8,053,380 0.8400 0.7718 546 931 September 30, 2016 Calls (written) C$ 8,053,380 0.8600 0.7718 (1 ) (3 ) December 30, 2016 Puts (purchased) C$ 8,110,800 0.8400 0.7718 564 941 December 30, 2016 Calls (written) C$ 8,110,800 0.8600 0.7718 (10 ) (6 ) Total $ 1,099 $ 3,705 (1) Strike and market prices are denoted in amounts where a Canadian dollar is exchanged for the indicated amount of U.S. dollars. We record the fair market value of our derivative financial instruments in our consolidated balance sheets as current and long-term assets or liabilities on a net basis by counterparty. The terms of the International Swaps and Derivatives Association Master Agreement, which governs our financial contracts and include master netting agreements, allow the parties to our derivative contracts to elect net settlement in respect of all transactions under the agreements. The effect of the rights of offset are presented in the table below. June 30, 2016 Current assets Non-current assets Current liabilities Non-current liabilities Total (in thousands) Fair value of derivatives — gross presentation $ 1,259 $ 151 $ (11 ) $ — $ 1,399 Effects of netting arrangements (11 ) — 11 — — Fair value of derivatives — net presentation $ 1,248 $ 151 $ — $ — $ 1,399 December 31, 2015 Current assets Non-current assets Current liabilities Non-current liabilities Total (in thousands) Fair value of derivatives — gross presentation $ 3,714 $ — $ (9 ) $ — $ 3,705 Effects of netting arrangements (9 ) — 9 — — Fair value of derivatives — net presentation $ 3,705 $ — $ — $ — $ 3,705 |
PARTNERS' CAPITAL
PARTNERS' CAPITAL | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
PARTNERS' CAPITAL | PARTNERS' CAPITAL Our common units and subordinated units represent limited partner interests in us. The holders of our common units and subordinated units are entitled to participate in partnership distributions and to exercise the rights and privileges available to limited partners under our partnership agreement. Our Class A units are limited partner interests in us that entitle the holders to nonforfeitable distributions that are equivalent to the distributions paid to holders of our common units (excluding any arrearages of unpaid minimum quarterly distributions from prior quarters) and, as a result, are considered participating securities. Our Class A units do not have voting rights and vest in four equal annual installments over the four years following the consummation of our IPO only if we grow our annualized distributions each year. If we do not achieve positive distribution growth in any of these years, the Class A units that would otherwise vest for that year will be forfeited. The Class A units contain a conversion feature, which, upon vesting, provides for the conversion of the Class A units into common units based on a conversion factor that is tied to the level of our distribution growth for the applicable year. The conversion factor was 1.00 for the first vesting tranche, and will not be more than 1.50 for the second vesting tranche, 1.75 for the third vesting tranche and 2.00 for the final vesting tranche. In February 2016, pursuant to the terms set forth in our partnership agreement, the first vesting tranche of 46,250 Class A units vested. We determined that, upon conversion, each vested Class A unit would receive one common unit based upon our distributions paid for the four preceding quarters. As a result, 46,250 Class A units were converted into 46,250 common units. Our partnership agreement provides that, while any subordinated units remain outstanding, holders of our common units and Class A units will have the right to receive distributions of available cash from operating surplus each quarter in an amount equal to our minimum quarterly distribution per unit, plus (with respect to the common units) any arrearages in the payment of the minimum quarterly distribution on the common units from prior quarters, before any distributions of available cash from operating surplus may be made on the subordinated units. Subordinated units convert into common units on a one -for-one basis in separate sequential tranches. Each tranche is comprised of 20.0% of the subordinated units issued in conjunction with our IPO. A separate tranche is eligible to convert on or after December 31, 2015 (but no more than once in any twelve -month period), provided on such date (i) distributions of available cash from operating surplus on each of the outstanding common units, Class A units, subordinated units and general partner units equaled or exceeded $1.15 per unit (the annualized minimum quarterly distribution) for the four quarter period immediately preceding that date; (ii) the adjusted operating surplus generated during the four quarter period immediately preceding that date equaled or exceeded the sum of $1.15 per unit (the annualized minimum quarterly distribution) on all of the common units, Class A units, subordinated units and general partner units outstanding during that period on a fully diluted basis; and (iii) there are no arrearages in the payment of the minimum quarterly distribution on our common units. For each successive tranche, the four quarter period specified in clauses (i) and (ii) above must commence after the four quarter period applicable to any prior tranche of subordinated units. In February 2016, pursuant to the terms set forth in our partnership agreement, we converted the first tranche of 2,092,709 of our subordinated units into common units upon satisfaction of the conditions established for conversion. Pursuant to the terms of the USD Partners LP 2014 Long-Term Incentive Plan, which we refer to as the LTIP, our phantom unit awards, or Phantom Units, granted to directors and employees of our general partner and its affiliates, which are classified as equity, are converted into our common units upon vesting. Equity-classified Phantom Units totaling 107,942 vested during the first quarter of 2016, of which 95,910 were converted into our common units after 12,032 Phantom Units were withheld from participants for the payment of applicable employment-related withholding tax. The conversion of these Phantom Units did not have any economic impact on Partners' Capital, since the economic impact is recognized over the vesting period. Additional information and discussion regarding our unit based compensation plans is included below in Note 15 - Unit Based Compensation. The board of directors of our general partner has adopted a cash distribution policy pursuant to which we intend to distribute at least the minimum quarterly distribution of $0.2875 per unit ( $1.15 per unit on an annualized basis) on all of our units to the extent we have sufficient available cash after the establishment of cash reserves and the payment of our expenses, including payments to our general partner and its affiliates. The board of directors of our general partner may change our distribution policy at any time and from time to time. Our partnership agreement does not require us to pay cash distributions on a quarterly or other basis. The amount of distributions we pay under our cash distribution policy and the decision to make any distribution is determined by our general partner. |
UNIT BASED COMPENSATION
UNIT BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
UNIT BASED COMPENSATION | UNIT BASED COMPENSATION Class A units Our Class A units vest over a four year period if established distribution target thresholds are met each year of the four year vesting period. In February 2016, pursuant to the terms set forth in our partnership agreement, the first vesting tranche of 46,250 Class A units vested based upon our distributions paid for the four preceding quarters and were converted on a one -for- one basis into 46,250 common units. The grant date average fair value of all Class A units was $25.71 per unit at June 30, 2016 and 2015 . Six Months Ended June 30, 2016 2015 Class A units outstanding at beginning of period 185,000 220,000 Vested 46,250 — Forfeited — 35,000 Class A units outstanding at end of period 138,750 185,000 We recognized compensation expense with regard to our Class A units of approximately $248 thousand and $287 thousand for the three months ended June 30, 2016 and 2015 , and $534 thousand and $838 thousand for the six months ended June 30, 2016 and 2015 , respectively, which cost is included in “Selling, general and administrative” in our consolidated statements of income. We did not have any forfeitures during the six months ended June 30, 2016 , whereas 35,000 Class A units were forfeited during the six months ended June 30, 2015 . We have elected to account for actual forfeitures as they occur rather than applying an estimated forfeiture rate when determining compensation expense. Each holder of a Class A unit is entitled to nonforfeitable cash distributions equal to the product of the number of Class A units outstanding for the participant and the cash distribution per unit paid to our common unitholders. These distributions are included in “Distributions” as presented in our consolidated statements of cash flows and our consolidated statement of partners’ capital. However, any distributions paid on Class A units that are forfeited are reclassified to unit based compensation expense when it is determined that the Class A units are not expected to vest. Long-term Incentive Plan In 2016 and 2015, the board of directors of our general partner, acting in its capacity as our general partner, approved the grant of 574,873 and 419,551 Phantom Units, respectively, to directors and employees of our general partner and its affiliates under our LTIP. The total number of our common units initially authorized for issuance under the LTIP was 1,654,167 , of which 704,029 remained available at June 30, 2016 . The Phantom Units are subject to all of the terms and conditions of the LTIP and the Phantom Unit award agreements, which are collectively referred to as the Award Agreements. Award amounts for the 2016 grants were generally determined by reference to a specified dollar amount determined by an allocation formula which included a percentage multiplier of the grantee's base salary, among other factors, converted to a number of units based on the closing price of one of our common units on February 22, 2016, as quoted on the NYSE. Phantom Unit awards generally represent rights to receive our common units upon vesting. However, with respect to the awards granted to directors and employees of our general partner and its affiliates domiciled in Canada, for each Phantom Unit that vests, a participant is entitled to receive cash for an amount equivalent to the closing market price of one of our common units on the vesting date. Additionally, each Phantom Unit granted under the Award Agreements includes an accompanying distribution equivalent right, or DER, which entitles each participant to receive payments at a per unit rate equal in amount to the per unit rate for any distributions we make with respect to our common units. The Award Agreements granted to employees of our general partner and its affiliates generally contemplate that the individual grants of Phantom Units will vest in four equal annual installments based on the grantee’s continued employment through the vesting dates specified in the Award Agreements, subject to acceleration upon the grantee’s death or disability, or involuntary termination in connection with a change in control of the Partnership or our general partner. Awards to independent directors of the board of our general partner typically vest over a one year period following the grant date. The following tables present our Equity-classified Phantom Unit award activity: Number of Director and Independent Consultant Units Number of Employee Units Weighted-Average Grant Date Fair Value Per Unit Phantom Unit awards at December 31, 2015 24,045 349,976 $ 12.75 Granted 64,830 471,412 $ 6.39 Vested 20,442 87,500 $ 12.79 Phantom Unit awards at June 30, 2016 68,433 733,888 $ 8.50 Number of Director and Independent Consultant Units Number of Employee Units Weighted-Average Grant Date Fair Value Per Unit Phantom Unit awards at December 31, 2014 — — $ — Granted 20,442 367,548 $ 12.80 Forfeited — 17,572 $ 12.90 Phantom Unit awards at June 30, 2015 20,442 349,976 $ 12.79 The following tables present our Liability-classified Phantom Unit award activity: Number of Director and Independent Consultant Units Number of Employee Units Weighted-Average Grant Date Fair Value Per Unit Phantom Unit awards at December 31, 2015 10,256 13,276 $ 12.78 Granted 21,610 17,021 $ 6.39 Vested 10,256 — $ 12.78 Phantom Unit awards at June 30, 2016 21,610 30,297 $ 8.02 Number of Director and Independent Consultant Units Number of Employee Units Weighted-Average Grant Date Fair Value Per Unit Phantom Unit awards at December 31, 2014 — — $ — Granted 10,256 17,702 $ 12.78 Phantom Unit awards at June 30, 2015 10,256 17,702 $ 12.78 The fair value of each Phantom Unit on the grant date is equal to the closing market price of our common units on the grant date. We account for the Phantom Unit grants to independent directors and employees of our general partner and its affiliates domiciled in Canada that are paid out in cash upon vesting, throughout the requisite vesting period, by revaluing the unvested Phantom Units outstanding at the end of each reporting period and recording a charge to compensation expense in “Selling, general and administrative” in our consolidated statements of income and recognizing a liability in "Accounts payable and accrued expenses" in our consolidated balance sheets. With respect to the Phantom Units granted to employees of our general partner and its affiliates domiciled in the United States, we amortize the initial grant date fair value over the requisite service period using the straight-line method with a charge to compensation expense in “Selling, general and administrative” in our consolidated statements of income, with an offset to common units within the Partners' Capital section of our consolidated balance sheet. With respect to the Phantom Units granted to consultants and independent directors of our general partner and its affiliates domiciled in the United States, we revalue the unvested Phantom Units outstanding at the end of each reporting period throughout the requisite service period and record a charge to compensation expense in “Selling, general and administrative” in our consolidated statements of income, with an offset to common units within the Partners' Capital section of our consolidated balance sheet. For the three months ended June 30, 2016 and 2015 , we recognized $721 thousand and $387 thousand for compensation expense associated with outstanding Phantom Units, and for the six months ended June 30, 2016 and 2015 , we recognized approximately $1,163 thousand and $563 thousand , respectively. As of June 30, 2016 , the unrecognized compensation expense related to Phantom Units was $6.5 million , which we expect to recognize over a weighted average period of 2.90 years. We have elected to account for actual forfeitures as they occur instead of the alternative of using an estimated forfeiture rate when determining the number of awards that are expected to vest. We made payments to holders of the Phantom Units pursuant to the associated DERs granted to them under the Award Agreements as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in thousands) Equity-classified Phantom Units $ 247 $ 112 $ 360 $ 112 Liability-classified Phantom Units 16 8 23 8 Total $ 263 $ 120 $ 383 $ 120 |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 6 Months Ended |
Jun. 30, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION The following table provides supplemental cash flow information for the periods indicated: Six Months Ended June 30, 2016 2015 (in thousands) Cash paid for income taxes $ 3,196 $ 282 Cash paid for interest $ 3,987 $ 1,960 |
RECENT ACCOUNITING PRONOUNCEMEN
RECENT ACCOUNITING PRONOUNCEMENTS NOT YET ADOPTED | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNITING PRONOUNCEMENTS NOT YET ADOPTED | RECENT ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED Leases In February 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update No. 2016-02, which amends the FASB Accounting Standards Codification, or ASC, Topic 842, to require balance sheet recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases. The amendment provides an option that permits us to elect not to recognize the lease assets and liabilities for leases with a term of 12 months or less. This pronouncement is effective for years beginning after December 15, 2018, and early adoption is permitted. We are currently evaluating the impact our adoption of this guidance will have on our consolidated financial statements. Revenue from Contracts with Customers In May 2014, the FASB issued Accounting Standards Update No. 2014-09, which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. In July 2015, the FASB delayed the effective date of the new revenue standard by one year, which is now effective for annual and interim periods beginning on or after December 15, 2017, and may be applied on either a full or modified retrospective basis. Additionally, the FASB has issued and is likely to continue issuing Accounting Standards Updates to clarify application of the guidance in the original standard and to provide practical expedients for implementing the guidance, all of which will be effective upon implementation. We are currently evaluating which transition approach we will apply and the impact our adoption of this pronouncement will have on our consolidated financial statements. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Distribution to Partners On July 28, 2016 , the board of directors of USD Partners GP LLC, acting in its capacity as our general partner, declared a cash distribution payable of $0.3150 per unit, or $1.26 per unit on an annualized basis, for the three months ended June 30, 2016 . The distribution represents an increase of $0.0075 per unit, or 2.4% over the prior quarter distribution per unit, and is 9.6% over our minimum quarterly distribution per unit. The distribution will be paid on August 12, 2016 , to unitholders of record at the close of business on August 8, 2016 . The distribution will include payment of $3.5 million to our public common unitholders, $44 thousand to the Class A unitholders, an aggregate of $3.6 million to USDG as a holder of our common units and the sole owner of our subordinated units and $145 thousand to USD Partners GP LLC for its general partner interest. |
ORGANIZATION AND BASIS OF PRE26
ORGANIZATION AND BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Our accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or GAAP, for interim consolidated financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all the information and disclosures required by GAAP for complete consolidated financial statements. In the opinion of our management, they contain all adjustments, consisting only of normal recurring adjustments, which our management considers necessary to present fairly our financial position as of June 30, 2016 , our results of operations for the three and six months ended June 30, 2016 and 2015 , and our cash flows for the six months ended June 30, 2016 and 2015 . We derived our consolidated balance sheet as of December 31, 2015 , from the audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015 . Our results of operations for the three and six months ended June 30, 2016 and 2015 , should not be taken as indicative of the results to be expected for the full year due to fluctuations in the supply of and demand for crude oil and biofuels, timing and completion of acquisitions, if any, and the impact of fluctuations in foreign currency exchange rates. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto presented in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015 . |
Foreign Currency Translation | Foreign Currency Translation A substantial portion of our operations are conducted in Canada and are accounted for in the local currency, the Canadian dollar, which we translate into our reporting currency, the U.S. dollar. We translate most Canadian dollar denominated balance sheet accounts at the end of period exchange rate, while most income statement accounts are translated based on the average exchange rate for the period. Fluctuations in the exchange rate between the Canadian dollar and the U.S. dollar can create variability in the amounts we translate and report in U.S. dollars. Within these consolidated financial statements, we denote amounts denominated in Canadian dollars with "C$" immediately prior to the stated amount. |
Goodwill | Goodwill We test goodwill for impairment annually based on the carrying values of our reporting units, or more frequently if impairment indicators arise that suggest the carrying value of goodwill may be impaired. Our goodwill arose in connection with our acquisition of the Casper terminal in November 2015, and we are not aware of any indicators that would suggest goodwill was impaired at June 30, 2016. We initially intended to test for impairment each year based on the carrying values at the end of the second quarter. However, we determined it to be impracticable to complete the necessary analysis and report the results within the second quarter. As a result, we intend to test for impairment annually based on the carrying values of our reporting units on the first day of the third quarter of each year, or more frequently if impairment indicators arise that suggest the carrying value of goodwill may be impaired. |
Comparative Amounts | Comparative Amounts We have made certain reclassifications to the amounts reported in the prior year to conform with the current year presentation. None of these reclassifications have an impact on our operating results, cash flows or financial position. |
Recent Accounting Pronouncements Not Yet Adopted | RECENT ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED Leases In February 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update No. 2016-02, which amends the FASB Accounting Standards Codification, or ASC, Topic 842, to require balance sheet recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases. The amendment provides an option that permits us to elect not to recognize the lease assets and liabilities for leases with a term of 12 months or less. This pronouncement is effective for years beginning after December 15, 2018, and early adoption is permitted. We are currently evaluating the impact our adoption of this guidance will have on our consolidated financial statements. Revenue from Contracts with Customers In May 2014, the FASB issued Accounting Standards Update No. 2014-09, which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. In July 2015, the FASB delayed the effective date of the new revenue standard by one year, which is now effective for annual and interim periods beginning on or after December 15, 2017, and may be applied on either a full or modified retrospective basis. Additionally, the FASB has issued and is likely to continue issuing Accounting Standards Updates to clarify application of the guidance in the original standard and to provide practical expedients for implementing the guidance, all of which will be effective upon implementation. We are currently evaluating which transition approach we will apply and the impact our adoption of this pronouncement will have on our consolidated financial statements. |
NET INCOME PER LIMITED PARTNE27
NET INCOME PER LIMITED PARTNER INTEREST (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Distribution Method to Limited and General Partners | The formula for distributing available cash as set forth in our partnership agreement is as follows: Distribution Targets Portion of Quarterly Distribution Per Unit Percentage Distributed to Limited Partners Percentage Distributed to General Partner (including IDRs) (1) Minimum Quarterly Distribution Up to $0.2875 98% 2% First Target Distribution > $0.2875 to $0.330625 98% 2% Second Target Distribution > $0.330625 to $0.359375 85% 15% Third Target Distribution > $0.359375 to $0.431250 75% 25% Thereafter Amounts above $0.431250 50% 50% (1) Assumes our general partner maintains a 2% general partner interest in us. |
Schedule of Earnings Per Share, Basic and Diluted | We determined basic and diluted net income per limited partner unit as set forth in the following tables: Three Months Ended June 30, 2016 Common Units Subordinated Units Class A General Total (in thousands, except per unit amounts) Net income attributable to general and limited partner interests in USD Partners LP (1) $ 3,206 $ 1,893 $ 32 $ 104 $ 5,235 Less: Distributable earnings (2) 4,622 2,727 46 150 7,545 Distributions in excess of earnings $ (1,416 ) $ (834 ) $ (14 ) $ (46 ) $ (2,310 ) Weighted average units outstanding (3) 14,182 8,371 139 461 23,153 Distributable earnings per unit (4) $ 0.33 $ 0.33 $ 0.33 Overdistributed earnings per unit (5) (0.10 ) (0.10 ) (0.10 ) Net income per limited partner unit (basic and diluted) $ 0.23 $ 0.23 $ 0.23 (1) Represents earnings allocated to each class of units based on the actual ownership of the Partnership during the period. (2) Represents the distributions payable for the period based upon the quarterly distribution amount of $0.3150 per unit, or $1.26 per unit on an annualized basis. Amounts presented for each class of unit include a proportionate amount of the $252 thousand distributable to holders of the Equity-classified Phantom Units pursuant to the distribution equivalent rights granted under the USD Partners LP 2014 Long-Term Incentive Plan. (3) Represents the weighted average units outstanding for the period. (4) Represents the total distributable earnings divided by the weighted average number of units outstanding for the period. (5) Represents the distributions in excess of earnings divided by the weighted average number of units outstanding for the period. Three Months Ended June 30, 2015 Common Units Subordinated Units Class A General Total (in thousands, except per unit amounts) Net income attributable to general and limited partner interests in USD Partners LP (1) $ 1,270 $ 1,305 $ 24 $ 53 $ 2,652 Less: Distributable earnings (2) 3,017 3,091 55 126 6,289 Distributions in excess of earnings $ (1,747 ) $ (1,786 ) $ (31 ) $ (73 ) $ (3,637 ) Weighted average units outstanding (3) 10,214 10,464 213 427 21,318 Distributable earnings per unit (4) $ 0.30 $ 0.30 $ 0.26 Overdistributed earnings per unit (5) (0.17 ) (0.17 ) (0.14 ) Net income per limited partner unit (basic and diluted) $ 0.13 $ 0.13 $ 0.12 (1) Represents earnings allocated to each class of units based on the actual ownership of the Partnership during the period. (2) Represents the distributions paid of $0.2900 per unit for the three months ended June 30, 2015, or $1.16 per unit on an annualized basis. Amounts presented for each class of unit include a proportionate amount of the $107 thousand distributed to holders of the Equity-classified Phantom Units pursuant to the distribution equivalent rights granted under the USD Partners LP 2014 Long-Term Incentive Plan. (3) Represents the weighted average units outstanding for the period. (4) Represents the total distributable earnings divided by the weighted average number of units outstanding for the period. (5) Represents the distributions in excess of earnings divided by the weighted average number of units outstanding for the period. Six Months Ended June 30, 2016 Common Units Subordinated Units Class A General Total (in thousands, except per unit amounts) Net income attributable to general and limited partner interests in USD Partners LP (1) $ 4,361 $ 2,829 $ 48 $ 147 $ 7,385 Less: Distributable earnings (2) 9,134 5,391 89 297 14,911 Distributions in excess of earnings $ (4,773 ) $ (2,562 ) $ (41 ) $ (150 ) $ (7,526 ) Weighted average units outstanding (3) 13,546 8,969 152 461 23,128 Distributable earnings per unit (4) $ 0.67 $ 0.60 $ 0.59 Overdistributed earnings per unit (5) (0.35 ) (0.29 ) (0.27 ) Net income per limited partner unit (basic and diluted) $ 0.32 $ 0.31 $ 0.32 (1) Represents earnings allocated to each class of units based on the actual ownership of the Partnership during the period. (2) Represents the distributions paid of $0.3075 per unit with respect to the three months ended March 31, 2016, and $0.3150 payable for the three months ended June 30, 2016, representing a year-to-date distribution amount of $0.6225 per unit. Amounts presented for each class of unit include a proportionate amount of the $247 thousand distributed and $252 thousand distributable to holders of the Equity-classified Phantom Units pursuant to the distribution equivalent rights granted under the USD Partners LP 2014 Long-Term Incentive Plan. (3) Represents the weighted average units outstanding for the period. (4) Represents the total distributable earnings divided by the weighted average number of units outstanding for the period. (5) Represents the distributions in excess of earnings divided by the weighted average number of units outstanding for the period. Six Months Ended June 30, 2015 Common Units Subordinated Units Class A General Total (in thousands, except per unit amounts) Net income attributable to general and limited partner interests in USD Partners LP (1) $ 2,250 $ 2,309 $ 40 $ 94 $ 4,693 Less: Distributable earnings (2) 6,007 6,154 109 251 12,521 Distributions in excess of earnings $ (3,757 ) $ (3,845 ) $ (69 ) $ (157 ) $ (7,828 ) Weighted average units outstanding (3) 10,214 10,464 217 427 21,322 Distributable earnings per unit (4) $ 0.59 $ 0.59 $ 0.50 Overdistributed earnings per unit (5) (0.37 ) (0.37 ) (0.32 ) Net income per limited partner unit (basic and diluted) $ 0.22 $ 0.22 $ 0.18 (1) Represents earnings allocated to each class of units based on the actual ownership of the Partnership during the period. (2) Represents the distributions paid of $0.2875 per unit with respect to the three months ended March 31, 2015, and $0.2900 for the three months ended June 30, 2015, representing a year-to-date distribution amount of $0.5775 per unit. Amounts presented for each class of unit include a proportionate amount of the $219 thousand distributed to holders of the Equity-classified Phantom Units pursuant to the distribution equivalent rights granted under the USD Partners LP 2014 Long-Term Incentive Plan. (3) Represents the weighted average units outstanding for the period. (4) Represents the total distributable earnings divided by the weighted average number of units outstanding for the period. (5) Represents the distributions in excess of earnings divided by the weighted average number of units outstanding for the period. |
CASPER TERMINAL ACQUISITION (Ta
CASPER TERMINAL ACQUISITION (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Pro Forma Information | The following table presents our unaudited pro forma consolidated financial information as if the closing of the Casper terminal acquisition occurred on January 1, 2015 : Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 (in thousands except per unit amounts) Total revenues $ 29,225 $ 51,057 Operating income $ 9,002 $ 12,717 Net income $ 4,492 $ 7,759 Earnings per common unit (basic and diluted) $ 0.20 $ 0.34 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Our property and equipment consist of the following as of the dates indicated: June 30, 2016 December 31, 2015 Estimated Useful Lives (Years) (in thousands) Land $ 9,743 $ 9,549 N/A Trackage and facilities 114,962 110,557 20 Pipeline 10,295 10,295 20 Equipment 8,589 8,237 5-10 Furniture 45 43 5 Total property and equipment 143,634 138,681 Accumulated depreciation (12,195 ) (8,326 ) Construction in progress 2,804 2,655 Property and equipment, net $ 134,243 $ 133,010 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Our intangible assets originated from our acquisition of the Casper terminal and consist of the following as of the dates indicated: June 30, 2016 December 31, 2015 (in thousands) Carrying amount: Customer service agreements $ 125,960 $ 125,960 Other 106 106 Total carrying amount 126,066 126,066 Accumulated amortization: Customer service agreements (7,837 ) (1,484 ) Other (7 ) (1 ) Total accumulated amortization (7,844 ) (1,485 ) Total intangible assets, net $ 118,222 $ 124,581 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Line of Credit Facilities | We determined the capacity available to us under the terms of our Credit Agreement was as follows as of the specified dates: June 30, 2016 December 31, 2015 (in millions) Aggregate borrowing capacity under Credit Agreement $ 400.0 $ 400.0 Less: Term Loan Facility amounts outstanding 30.6 41.5 Revolving Credit Facility amounts outstanding 206.0 201.0 Letters of credit outstanding — — Available under Credit Agreement (1) $ 163.4 $ 157.5 (1) Pursuant to the terms of our Credit Agreement, our borrowing capacity at June 30, 2016 is limited to 5.0 times our trailing 12 -month Consolidated EBITDA, which declines to 4.5 times after June 30, 2016 . |
Schedule of Interest Expense, Net | Interest expense associated with our operations was as follows for the specified periods: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in thousands) Interest expense on the Credit Agreement $ 2,318 $ 835 $ 4,286 $ 1,668 Amortization of deferred financing costs 215 160 430 319 Total interest expense $ 2,533 $ 995 $ 4,716 $ 1,987 |
Schedule of Long-term Debt | Details regarding the composition of our long-term debt balances were as follows as of the specified dates: June 30, 2016 December 31, 2015 (in thousands) Term Loan Facility $ 30,574 $ 41,539 Revolving Credit Facility 206,000 201,000 Less: Deferred financing costs, net (2,665 ) (3,095 ) Total long-term debt, net $ 233,909 $ 239,444 |
DEFERRED REVENUE (Tables)
DEFERRED REVENUE (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Deferred Revenue Disclosure [Abstract] | |
Summary of Deferred Revenue | The following table provides details of our deferred revenue with unrelated customers as reflected in our consolidated balance sheets as of the dates indicated: June 30, 2016 December 31, 2015 (in thousands) Customer prepayments, current portion (1) $ 2,875 $ 1,763 Minimum monthly commitment fees 23,700 20,395 Total deferred revenue, current portion $ 26,575 $ 22,158 Customer prepayments (1) $ 956 $ 2,022 Total deferred revenue, net of current portion $ 956 $ 2,022 (1) Represents amounts associated with lease payments received in advance from our Fleet services customers. |
TRANSACTIONS WITH RELATED PAR33
TRANSACTIONS WITH RELATED PARTIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of Variable Interest Entities | The following tables summarize the total assets and liabilities between us and the VIEs as reflected in our consolidated balance sheets, as well as our maximum exposure to losses from entities in which we have a variable interest, but are not the primary beneficiary. Generally, our maximum exposure to losses is limited to amounts receivable for services we provided, reduced by any deferred revenues. June 30, 2016 Total assets Total liabilities Maximum exposure to loss (in thousands) Accounts receivable — related party $ 209 $ — $ — Deferred revenue, current portion — related party — 1,288 — Deferred revenue, net of current portion — related party — 903 — $ 209 $ 2,191 $ — December 31, 2015 Total assets Total liabilities Maximum exposure to loss (in thousands) Accounts receivable — related party $ 196 $ — $ — Deferred revenue, current portion — related party — 1,287 — Deferred revenue, net of current portion — related party — 1,542 — $ 196 $ 2,829 $ — |
Schedule of Deferred Revenue, Current Portion - Related Party | Information about related party sales to USDM is presented below: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in thousands) Terminalling services — related party $ 1,756 $ 1,803 $ 3,406 $ 1,803 Fleet leases — related party 891 1,011 1,781 2,221 Fleet services — related party 279 214 558 472 Freight and other reimbursables — related party — 22 — 62 $ 2,926 $ 3,050 $ 5,745 $ 4,558 |
Distributions Made to General and Limited Partner, by Distribution | During the six months ended June 30, 2016 , we paid the following aggregate cash distributions to USDG as a holder of our common units and the sole owner of our subordinated units and to USD Partners GP LLC for their general partner interest. Distribution Declaration Date Record Date Distribution Payment Date Amount Paid to USDG Amount Paid to USD Partners GP LLC (in thousands) February 4, 2016 February 15, 2016 February 19, 2016 $ 3,467 $ 138 April 28, 2016 May 9, 2016 May 13, 2016 3,554 142 $ 7,021 $ 280 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Summary of Reportable Segment Data for Continuing Operations | The following tables summarize our reportable segment data: Three Months Ended June 30, 2016 Terminalling Fleet Corporate Total (in thousands) Revenues Terminalling services $ 23,459 $ — $ — $ 23,459 Terminalling services — related party 1,756 — — 1,756 Railroad incentives 22 — — 22 Fleet leases — 647 — 647 Fleet leases — related party — 891 — 891 Fleet services — 69 — 69 Fleet services — related party — 684 — 684 Freight and other reimbursables 19 331 — 350 Freight and other reimbursables — related party — — — — Total revenues 25,256 2,622 — 27,878 Operating costs Subcontracted rail services 2,026 — — 2,026 Pipeline fees 5,338 — — 5,338 Fleet leases — 1,538 — 1,538 Freight and other reimbursables 19 331 — 350 Selling, general and administrative 1,748 298 2,249 4,295 Depreciation and amortization 4,914 — — 4,914 Total operating costs 14,045 2,167 2,249 18,461 Operating income (loss) 11,211 455 (2,249 ) 9,417 Interest expense 352 — 2,181 2,533 Gain associated with derivative instruments (253 ) — — (253 ) Foreign currency transaction loss (gain) 5 (20 ) — (15 ) Provision for (benefit from) income taxes 1,948 (32 ) 1 1,917 Net income (loss) $ 9,159 $ 507 $ (4,431 ) $ 5,235 Goodwill $ 33,970 $ — $ — $ 33,970 Three Months Ended June 30, 2015 Terminalling Fleet Corporate Total (in thousands) Revenues Terminalling services $ 14,279 $ — $ — $ 14,279 Terminalling services — related party 1,803 — — 1,803 Railroad incentives 18 — — 18 Fleet leases — 1,906 — 1,906 Fleet leases — related party — 1,011 — 1,011 Fleet services — 155 — 155 Fleet services — related party — 670 — 670 Freight and other reimbursables — 531 — 531 Freight and other reimbursables — related party — 22 — 22 Total revenues 16,100 4,295 — 20,395 Operating costs Subcontracted rail services 2,222 — — 2,222 Pipeline fees 4,460 — — 4,460 Fleet leases — 2,917 — 2,917 Freight and other reimbursables — 553 — 553 Selling, general and administrative 1,248 205 1,887 3,340 Depreciation and amortization 1,096 — — 1,096 Total operating costs 9,026 3,675 1,887 14,588 Operating income (loss) 7,074 620 (1,887 ) 5,807 Interest expense 572 — 423 995 Loss associated with derivative instruments 218 — — 218 Foreign currency transaction loss (gain) 8 (50 ) — (42 ) Provision for income taxes 1,973 10 1 1,984 Net income (loss) $ 4,303 $ 660 $ (2,311 ) $ 2,652 Six Months Ended June 30, 2016 Terminalling Fleet Corporate Total (in thousands) Revenues Terminalling services $ 45,482 $ — $ — $ 45,482 Terminalling services — related party 3,406 — — 3,406 Railroad incentives 37 — — 37 Fleet leases — 1,290 — 1,290 Fleet leases — related party — 1,781 — 1,781 Fleet services — 138 — 138 Fleet services — related party — 1,368 — 1,368 Freight and other reimbursables 19 714 — 733 Freight and other reimbursables — related party — — — — Total revenues 48,944 5,291 — 54,235 Operating costs Subcontracted rail services 4,069 — — 4,069 Pipeline fees 10,052 — — 10,052 Fleet leases — 3,071 — 3,071 Freight and other reimbursables 19 714 — 733 Selling, general and administrative 3,797 547 5,207 9,551 Depreciation and amortization 9,819 — — 9,819 Total operating costs 27,756 4,332 5,207 37,295 Operating income (loss) 21,188 959 (5,207 ) 16,940 Interest expense 682 — 4,034 4,716 Loss associated with derivative instruments 1,270 — — 1,270 Foreign currency transaction gain (75 ) (70 ) — (145 ) Provision for (benefit from) income taxes 3,731 (18 ) 1 3,714 Net income (loss) $ 15,580 $ 1,047 $ (9,242 ) $ 7,385 Goodwill $ 33,970 $ — $ — $ 33,970 Six Months Ended June 30, 2015 Terminalling Fleet Corporate Total (in thousands) Revenues Terminalling services $ 22,666 $ — $ — $ 22,666 Terminalling services — related party 1,803 — — 1,803 Railroad incentives 27 — — 27 Fleet leases — 3,784 — 3,784 Fleet leases — related party — 2,221 — 2,221 Fleet services — 311 — 311 Fleet services — related party — 1,542 — 1,542 Freight and other reimbursables — 1,487 — 1,487 Freight and other reimbursables — related party — 62 — 62 Total revenues 24,496 9,407 — 33,903 Operating costs Subcontracted rail services 4,449 — — 4,449 Pipeline fees 6,403 — — 6,403 Fleet leases — 6,005 — 6,005 Freight and other reimbursables — 1,549 — 1,549 Selling, general and administrative 2,542 464 3,730 6,736 Depreciation and amortization 2,189 — — 2,189 Total operating costs 15,583 8,018 3,730 27,331 Operating income (loss) 8,913 1,389 (3,730 ) 6,572 Interest expense 1,174 — 813 1,987 Gain associated with derivative instruments (1,731 ) — — (1,731 ) Foreign currency transaction loss (gain) 54 (27 ) (410 ) (383 ) Provision for income taxes 1,980 25 1 2,006 Net income (loss) $ 7,436 $ 1,391 $ (4,134 ) $ 4,693 |
Reconciliation of Adjusted EBITDA to Loss from Continuing Operations | The following table provides a reconciliation of Segment Adjusted EBITDA to Net cash provided by operating activities: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in thousands) Segment Adjusted EBITDA Terminalling services $ 17,095 $ 10,504 $ 33,230 $ 21,160 Fleet services 455 620 959 1,389 Corporate activities (1) (1,280 ) (1,213 ) (3,510 ) (2,329 ) Total Adjusted EBITDA 16,270 9,911 30,679 20,220 Add (deduct): Amortization of deferred financing costs 215 160 430 319 Deferred income taxes (50 ) 878 (96 ) 878 Changes in accounts receivable and other assets (458 ) 2,249 1,507 (4,845 ) Changes in accounts payable and accrued expenses (1,112 ) (1,207 ) (1,937 ) (2,245 ) Changes in deferred revenue and other liabilities 1,555 3,118 2,100 12,629 Change in restricted cash 1,793 (837 ) (633 ) 323 Interest expense (2,533 ) (995 ) (4,716 ) (1,987 ) Provision for income taxes (1,917 ) (1,984 ) (3,714 ) (2,006 ) Foreign currency transaction gain (2) 15 42 145 383 Deferred revenue associated with minimum monthly commitment fees (3) (424 ) (1,550 ) (1,187 ) (8,380 ) Net cash provided by operating activities $ 13,354 $ 9,785 $ 22,578 $ 15,289 (1) Corporate activities represent corporate and financing transactions that are not allocated to our established reporting segments. (2) Represents foreign exchange transactions gains or losses associated with activities between our U.S. and Canadian subsidiaries. (3) Represents deferred revenue associated with minimum monthly commitment fees in excess of throughput utilized, which fees are not refundable to our customers. Amounts presented are net of: (a) the corresponding prepaid Gibson pipeline fee that will be recognized as expense concurrently with the recognition of revenue; (b) revenue recognized in the current period that was previously deferred; and (c) expense recognized for previously prepaid Gibson pipeline fees, which correspond with the revenue recognized that was previously deferred. Refer to additional discussion of deferred revenue in Note 7 of these consolidated financial statements. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | We determine our 2016 income tax expense based upon our estimated annual effective income tax rate of approximately 25% on a consolidated basis for fiscal year 2016, which rate is attributable to the multiple domestic and foreign tax jurisdictions to which we are subject. Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in thousands) Current income tax expense U.S. federal income tax $ — $ — $ — $ — State income tax (benefit) (7 ) 21 30 43 Canadian federal and provincial income taxes 1,974 1,085 3,780 1,085 Total current income tax expense 1,967 1,106 3,810 1,128 Deferred income tax Canadian federal and provincial income tax change (50 ) 878 (96 ) 878 Total change in deferred income tax (50 ) 878 (96 ) 878 Total income tax expense $ 1,917 $ 1,984 $ 3,714 $ 2,006 |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation between income tax expense based on the U.S. federal statutory income tax rate and our effective income tax expense is presented below: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in thousands) Income tax expense at the U.S. federal statutory rate $ 2,432 $ 1,577 $ 3,774 $ 2,278 Loss attributable to partnership not subject to income tax 215 551 1,159 420 Foreign income tax rate differential (515 ) (583 ) (959 ) (667 ) Other (94 ) (18 ) (62 ) (18 ) State income tax (benefit) (7 ) 21 30 43 Change in valuation allowance (114 ) 436 (228 ) (50 ) Total income tax expense $ 1,917 $ 1,984 $ 3,714 $ 2,006 |
Schedule of Deferred Tax Assets and Liabilities | Major components of deferred income tax assets and liabilities associated with our operations were as follows as of the specified dates: June 30, 2016 U.S. Foreign Total (in thousands) Deferred income tax assets Deferred revenues $ 631 $ — $ 631 Capital carryforwards — 454 454 Operating loss carryforwards 407 — 407 Deferred income tax liabilities Prepaid expenses (750 ) — (750 ) Property and equipment — (703 ) (703 ) Total deferred tax 1,788 1,157 2,945 Valuation allowance (288 ) (454 ) (742 ) Net deferred income tax liability $ 1,500 $ 703 $ 2,203 December 31, 2015 U.S. Foreign Total (in thousands) Deferred income tax assets Deferred revenues $ 1,212 $ — $ 1,212 Capital carryforwards — 424 424 Operating loss carryforwards 7 — 7 Deferred income tax liabilities Prepaid expenses (673 ) — (673 ) Property and equipment — (749 ) (749 ) Total deferred tax 1,892 1,173 3,065 Valuation allowance (546 ) (424 ) (970 ) Net deferred income tax liability $ 1,346 $ 749 $ 2,095 |
DERIVATIVE FINANCIAL INSTRUME36
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Positions Included in the Consolidated Balance Sheets at Fair Value | We record all of our derivative financial instruments at their fair values in our consolidated balance sheets, which were as follows on the specified dates: June 30, 2016 December 31, 2015 (in thousands) Other current assets $ 1,248 $ 3,705 Other non-current assets 151 — $ 1,399 $ 3,705 |
Schedule of Gain (Loss) on Derivative Instruments | In connection with our derivative activities, we recognized the following amounts during the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in thousands) Loss (gain) associated with derivative instruments $ (253 ) $ 218 $ 1,270 $ (1,731 ) |
Schedule of Derivative Instruments | The following tables present summarized information about the fair values of our outstanding foreign currency contracts: June 30, 2016 Notional (C$) Forward Rate (1) Market Price (1) Fair Value (in thousands) Forward contracts maturing in 2017 March 31, 2017 C$ 8,300,000 0.7804 0.7715 $ 74 June 30, 2017 C$ 8,400,000 0.7805 0.7716 75 September 29, 2017 C$ 8,400,000 0.7807 0.7717 75 December 29, 2017 C$ 8,400,000 0.7809 0.7718 76 Total $ 300 (1) Forward rates and market prices are denoted in amounts where a Canadian dollar is exchanged for the indicated amount of U.S. dollars. The forward rate represents the rate we will receive upon settlement and the market price represents the rate we would expect to pay had the contract been settled on June 30, 2016 . June 30, 2016 December 31, 2015 Notional (C$) Strike Price (1) Market Price (1) Fair Value Fair Value (in thousands) Option contracts maturing in 2016 March 31, 2016 Puts (purchased) C$ 7,907,580 0.8400 — $ — $ 921 March 31, 2016 Calls (written) C$ 7,907,580 0.8600 — — — June 30, 2016 Puts (purchased) C$ 7,939,530 0.8400 — — 921 June 30, 2016 Calls (written) C$ 7,939,530 0.8600 — — — September 30, 2016 Puts (purchased) C$ 8,053,380 0.8400 0.7718 546 931 September 30, 2016 Calls (written) C$ 8,053,380 0.8600 0.7718 (1 ) (3 ) December 30, 2016 Puts (purchased) C$ 8,110,800 0.8400 0.7718 564 941 December 30, 2016 Calls (written) C$ 8,110,800 0.8600 0.7718 (10 ) (6 ) Total $ 1,099 $ 3,705 (1) Strike and market prices are denoted in amounts where a Canadian dollar is exchanged for the indicated amount of U.S. dollars. |
Offsetting Assets | The effect of the rights of offset are presented in the table below. June 30, 2016 Current assets Non-current assets Current liabilities Non-current liabilities Total (in thousands) Fair value of derivatives — gross presentation $ 1,259 $ 151 $ (11 ) $ — $ 1,399 Effects of netting arrangements (11 ) — 11 — — Fair value of derivatives — net presentation $ 1,248 $ 151 $ — $ — $ 1,399 December 31, 2015 Current assets Non-current assets Current liabilities Non-current liabilities Total (in thousands) Fair value of derivatives — gross presentation $ 3,714 $ — $ (9 ) $ — $ 3,705 Effects of netting arrangements (9 ) — 9 — — Fair value of derivatives — net presentation $ 3,705 $ — $ — $ — $ 3,705 |
Offsetting Liabilities | The effect of the rights of offset are presented in the table below. June 30, 2016 Current assets Non-current assets Current liabilities Non-current liabilities Total (in thousands) Fair value of derivatives — gross presentation $ 1,259 $ 151 $ (11 ) $ — $ 1,399 Effects of netting arrangements (11 ) — 11 — — Fair value of derivatives — net presentation $ 1,248 $ 151 $ — $ — $ 1,399 December 31, 2015 Current assets Non-current assets Current liabilities Non-current liabilities Total (in thousands) Fair value of derivatives — gross presentation $ 3,714 $ — $ (9 ) $ — $ 3,705 Effects of netting arrangements (9 ) — 9 — — Fair value of derivatives — net presentation $ 3,705 $ — $ — $ — $ 3,705 |
UNIT BASED COMPENSATION UNIT BA
UNIT BASED COMPENSATION UNIT BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Class A Units Outstanding | The grant date average fair value of all Class A units was $25.71 per unit at June 30, 2016 and 2015 . Six Months Ended June 30, 2016 2015 Class A units outstanding at beginning of period 185,000 220,000 Vested 46,250 — Forfeited — 35,000 Class A units outstanding at end of period 138,750 185,000 |
Schedule of Share-based Compensation, Activity | The following tables present our Equity-classified Phantom Unit award activity: Number of Director and Independent Consultant Units Number of Employee Units Weighted-Average Grant Date Fair Value Per Unit Phantom Unit awards at December 31, 2015 24,045 349,976 $ 12.75 Granted 64,830 471,412 $ 6.39 Vested 20,442 87,500 $ 12.79 Phantom Unit awards at June 30, 2016 68,433 733,888 $ 8.50 Number of Director and Independent Consultant Units Number of Employee Units Weighted-Average Grant Date Fair Value Per Unit Phantom Unit awards at December 31, 2014 — — $ — Granted 20,442 367,548 $ 12.80 Forfeited — 17,572 $ 12.90 Phantom Unit awards at June 30, 2015 20,442 349,976 $ 12.79 The following tables present our Liability-classified Phantom Unit award activity: Number of Director and Independent Consultant Units Number of Employee Units Weighted-Average Grant Date Fair Value Per Unit Phantom Unit awards at December 31, 2015 10,256 13,276 $ 12.78 Granted 21,610 17,021 $ 6.39 Vested 10,256 — $ 12.78 Phantom Unit awards at June 30, 2016 21,610 30,297 $ 8.02 Number of Director and Independent Consultant Units Number of Employee Units Weighted-Average Grant Date Fair Value Per Unit Phantom Unit awards at December 31, 2014 — — $ — Granted 10,256 17,702 $ 12.78 Phantom Unit awards at June 30, 2015 10,256 17,702 $ 12.78 |
Schedule of Phantom Units Granted | We made payments to holders of the Phantom Units pursuant to the associated DERs granted to them under the Award Agreements as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in thousands) Equity-classified Phantom Units $ 247 $ 112 $ 360 $ 112 Liability-classified Phantom Units 16 8 23 8 Total $ 263 $ 120 $ 383 $ 120 |
SUPPLEMENTAL CASH FLOW INFORM38
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow Disclosures | The following table provides supplemental cash flow information for the periods indicated: Six Months Ended June 30, 2016 2015 (in thousands) Cash paid for income taxes $ 3,196 $ 282 Cash paid for interest $ 3,987 $ 1,960 |
NET INCOME PER LIMITED PARTNE39
NET INCOME PER LIMITED PARTNER INTEREST - Schedule of Distribution Method to Limited and General Partners (Details) | 6 Months Ended |
Jun. 30, 2016$ / shares | |
USD Partners GP LLC | General Partner | |
Distribution Made to Limited Partner [Line Items] | |
General partner interest (as percent) | 2.00% |
Minimum Quarterly Distribution | |
Distribution Made to Limited Partner [Line Items] | |
Percentage distributed to Limited Partners | 98.00% |
Percentage distributed to General Partner (including IDRs) | 2.00% |
Minimum Quarterly Distribution | Maximum | |
Distribution Made to Limited Partner [Line Items] | |
Portion of quarterly distribution per unit (USD per share) | $ 0.2875 |
First Target Distribution | |
Distribution Made to Limited Partner [Line Items] | |
Percentage distributed to Limited Partners | 98.00% |
Percentage distributed to General Partner (including IDRs) | 2.00% |
First Target Distribution | Minimum | |
Distribution Made to Limited Partner [Line Items] | |
Portion of quarterly distribution per unit (USD per share) | $ 0.2875 |
First Target Distribution | Maximum | |
Distribution Made to Limited Partner [Line Items] | |
Portion of quarterly distribution per unit (USD per share) | $ 0.330625 |
Second Target Distribution | |
Distribution Made to Limited Partner [Line Items] | |
Percentage distributed to Limited Partners | 85.00% |
Percentage distributed to General Partner (including IDRs) | 15.00% |
Second Target Distribution | Minimum | |
Distribution Made to Limited Partner [Line Items] | |
Portion of quarterly distribution per unit (USD per share) | $ 0.330625 |
Second Target Distribution | Maximum | |
Distribution Made to Limited Partner [Line Items] | |
Portion of quarterly distribution per unit (USD per share) | $ 0.359375 |
Third Target Distribution | |
Distribution Made to Limited Partner [Line Items] | |
Percentage distributed to Limited Partners | 75.00% |
Percentage distributed to General Partner (including IDRs) | 25.00% |
Third Target Distribution | Minimum | |
Distribution Made to Limited Partner [Line Items] | |
Portion of quarterly distribution per unit (USD per share) | $ 0.359375 |
Third Target Distribution | Maximum | |
Distribution Made to Limited Partner [Line Items] | |
Portion of quarterly distribution per unit (USD per share) | $ 0.431250 |
Thereafter | |
Distribution Made to Limited Partner [Line Items] | |
Percentage distributed to Limited Partners | 50.00% |
Percentage distributed to General Partner (including IDRs) | 50.00% |
Thereafter | Minimum | |
Distribution Made to Limited Partner [Line Items] | |
Portion of quarterly distribution per unit (USD per share) | $ 0.431250 |
NET INCOME PER LIMITED PARTNE40
NET INCOME PER LIMITED PARTNER INTEREST - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Limited Partners' Capital Account [Line Items] | ||||||
Net income | $ 5,235,000 | $ 2,652,000 | $ 7,385,000 | $ 4,693,000 | ||
Less: Distributable earnings | 7,545,000 | 6,289,000 | 14,911,000 | 12,521,000 | ||
Distributions in excess of earnings | $ (2,310,000) | $ (3,637,000) | $ (7,526,000) | $ (7,828,000) | ||
Weighted average common units outstanding (in shares) | 23,153 | 21,318 | 23,128 | 21,322 | ||
Partners share targeted year-to-date distribution amount (USD per share) | $ 0.315 | $ 0.29 | $ 0.2875 | $ 0.6225 | $ 0.5775 | |
Targeted annual distribution amount (USD per share) | 1.26 | $ 1.16 | $ 1.15 | |||
Phantom Share Units (PSUs) | ||||||
Limited Partners' Capital Account [Line Items] | ||||||
Partners share targeted year-to-date distribution amount (USD per share) | $ 0.3150 | $ 0.3075 | ||||
Equity-classified Phantom Units | $ 252,000 | $ 247,000 | $ 107,000 | $ 219,000 | ||
Common Units | ||||||
Limited Partners' Capital Account [Line Items] | ||||||
Weighted average common units outstanding (in shares) | 14,182 | 10,214 | 13,546 | 10,214 | ||
Subordinated Units | ||||||
Limited Partners' Capital Account [Line Items] | ||||||
Weighted average common units outstanding (in shares) | 8,371 | 10,464 | 8,969 | 10,464 | ||
Limited Partner | Common Units | ||||||
Limited Partners' Capital Account [Line Items] | ||||||
Net income | $ 3,206,000 | $ 1,270,000 | $ 4,361,000 | $ 2,250,000 | ||
Less: Distributable earnings | 4,622,000 | 3,017,000 | 9,134,000 | 6,007,000 | ||
Distributions in excess of earnings | $ (1,416,000) | $ (1,747,000) | $ (4,773,000) | $ (3,757,000) | ||
Weighted average common units outstanding (in shares) | 14,182 | 10,214 | 13,546 | 10,214 | ||
Distributable earnings per unit (USD per share) | $ 0.33 | $ 0.30 | $ 0.67 | $ 0.59 | ||
Overdistributed earnings per unit (USD per share) | (0.10) | (0.17) | (0.35) | (0.37) | ||
Net loss per limited partner unit from continuing operations (basic and diluted) (USD per share) | $ 0.23 | $ 0.13 | $ 0.32 | $ 0.22 | ||
Equity-classified Phantom Units | $ 8,155,000 | $ 5,477,000 | ||||
Limited Partner | Subordinated Units | ||||||
Limited Partners' Capital Account [Line Items] | ||||||
Net income | $ 1,893,000 | $ 1,305,000 | 2,829,000 | 2,309,000 | ||
Less: Distributable earnings | 2,727,000 | 3,091,000 | 5,391,000 | 6,154,000 | ||
Distributions in excess of earnings | $ (834,000) | $ (1,786,000) | $ (2,562,000) | $ (3,845,000) | ||
Distributable earnings per unit (USD per share) | $ 0.33 | $ 0.30 | $ 0.60 | $ 0.59 | ||
Overdistributed earnings per unit (USD per share) | (0.10) | (0.17) | (0.29) | (0.37) | ||
Net loss per limited partner unit from continuing operations (basic and diluted) (USD per share) | $ 0.23 | $ 0.13 | $ 0.31 | $ 0.22 | ||
Equity-classified Phantom Units | $ 5,854,000 | $ 5,611,000 | ||||
Limited Partner | Class A Units | ||||||
Limited Partners' Capital Account [Line Items] | ||||||
Net income | $ 32,000 | $ 24,000 | 48,000 | 40,000 | ||
Less: Distributable earnings | 46,000 | 55,000 | 89,000 | 109,000 | ||
Distributions in excess of earnings | $ (14,000) | $ (31,000) | $ (41,000) | $ (69,000) | ||
Weighted average common units outstanding (in shares) | 139 | 213 | 152 | 217 | ||
Distributable earnings per unit (USD per share) | $ 0.33 | $ 0.26 | $ 0.59 | $ 0.50 | ||
Overdistributed earnings per unit (USD per share) | (0.10) | (0.14) | (0.27) | (0.32) | ||
Net loss per limited partner unit from continuing operations (basic and diluted) (USD per share) | $ 0.23 | $ 0.12 | $ 0.32 | $ 0.18 | ||
Equity-classified Phantom Units | $ 100,000 | $ 99,000 | ||||
General Partner | ||||||
Limited Partners' Capital Account [Line Items] | ||||||
Net income | $ 104,000 | $ 53,000 | 147,000 | 94,000 | ||
Less: Distributable earnings | 150,000 | 126,000 | 297,000 | 251,000 | ||
Distributions in excess of earnings | $ (46,000) | $ (73,000) | $ (150,000) | $ (157,000) | ||
Weighted average common units outstanding (in shares) | 461 | 427 | 461 | 427 | ||
Equity-classified Phantom Units | $ 287,000 | $ 227,000 |
CASPER TERMINAL ACQUISITION -
CASPER TERMINAL ACQUISITION - Additional Information (Details) - Casper Crude to Rail Holdings, LLC $ in Millions | Nov. 17, 2015USD ($)storage_tankinmisharesbbl | Jun. 30, 2016USD ($) | Jun. 30, 2016USD ($) |
Business Acquisition [Line Items] | |||
Percentage of membership interest acquired | 100.00% | ||
Barrel per day capacity (more than) | bbl | 100,000 | ||
Number of customer-dedicated storage tanks | storage_tank | 6 | ||
Total capacity of storage tanks | bbl | 900,000 | ||
Length of pipeline | mi | 6 | ||
Diameter of pipeline | in | 24 | ||
Cash consideration | $ 210.4 | ||
Equity consideration | shares | 1,733,582 | ||
Revenues | $ 8 | $ 16 | |
Net income | $ 2.6 | $ 5 |
CASPER TERMINAL ACQUISITION 42
CASPER TERMINAL ACQUISITION - Pro Forma Information (Details) - Casper Crude to Rail Holdings, LLC - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2015 | Jun. 30, 2015 | |
Business Acquisition [Line Items] | ||
Total revenues | $ 29,225 | $ 51,057 |
Operating income | 9,002 | 12,717 |
Net income | $ 4,492 | $ 7,759 |
Earnings per common unit (basic) (USD per share) | $ 0.20 | $ 0.34 |
PROPERTY AND EQUIPMENT - Schedu
PROPERTY AND EQUIPMENT - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 143,634 | $ 138,681 |
Accumulated depreciation | (12,195) | (8,326) |
Construction in progress | 2,804 | 2,655 |
Property and equipment, net | 134,243 | 133,010 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 9,743 | 9,549 |
Trackage and facilities | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 114,962 | 110,557 |
Property plant and equipment, useful life | 20 years | |
Pipeline | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 10,295 | 10,295 |
Property plant and equipment, useful life | 20 years | |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 8,589 | 8,237 |
Equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, useful life | 5 years | |
Equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, useful life | 10 years | |
Furniture | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 45 | $ 43 |
Property plant and equipment, useful life | 5 years |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Carrying amount | $ 126,066 | $ 126,066 | $ 126,066 |
Accumulated amortization | (7,844) | (7,844) | (1,485) |
Intangible assets, net | 118,222 | 118,222 | 124,581 |
Amortization of intangible assets | 3,200 | 6,400 | |
Customer service agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Carrying amount | 125,960 | 125,960 | 125,960 |
Accumulated amortization | (7,837) | (7,837) | (1,484) |
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Carrying amount | 106 | 106 | 106 |
Accumulated amortization | $ (7) | $ (7) | $ (1) |
DEBT - Narrative (Details)
DEBT - Narrative (Details) - Credit Facility - Secured Debt - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 400,000,000 | $ 400,000,000 |
Term of agreement | 5 years | |
Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 300,000,000 | |
Line of credit facility, pay-down feature, higher borrowing capacity option | 400,000,000 | |
Line of credit facility, accordion feature, increase limit | 100,000,000 | |
Line of credit facility, accordion feature, higher borrowing capacity option | $ 500,000,000 | |
Average interest rate | 3.43% | 2.71% |
Term Loan | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 100,000,000 | |
Line of credit facility, covenant noncompliance, increase interest rate | 1.00% | |
Standby Letters of Credit | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 20,000,000 | |
Swingline Sub-facility | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 20,000,000 |
DEBT - Schedule of Line of Cred
DEBT - Schedule of Line of Credit Facilities (Details) - Secured Debt - Credit Facility | 1 Months Ended | 6 Months Ended | |
Aug. 04, 2016 | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | |
Line of Credit Facility [Line Items] | |||
Aggregate borrowing capacity under Credit Agreement | $ 400,000,000 | $ 400,000,000 | |
Term Loan | |||
Line of Credit Facility [Line Items] | |||
Aggregate borrowing capacity under Credit Agreement | 100,000,000 | ||
Term Loan Facility amounts outstanding | 30,600,000 | 41,500,000 | |
Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Aggregate borrowing capacity under Credit Agreement | 300,000,000 | ||
Term Loan Facility amounts outstanding | 206,000,000 | 201,000,000 | |
Letters of Credit | |||
Line of Credit Facility [Line Items] | |||
Term Loan Facility amounts outstanding | 0 | 0 | |
Secured Debt | |||
Line of Credit Facility [Line Items] | |||
Available under Credit Agreement | $ 163,400,000 | $ 157,500,000 | |
Borrowing capacity limit multiple of EBITDA | 5 | ||
Subsequent Event | Secured Debt | |||
Line of Credit Facility [Line Items] | |||
Borrowing capacity limit multiple of EBITDA | 4.5 |
DEBT - Schedule of Interest Exp
DEBT - Schedule of Interest Expense, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Line of Credit Facility [Line Items] | ||||
Amortization of deferred financing costs | $ 215 | $ 160 | $ 430 | $ 319 |
Interest Expense | 2,533 | 995 | 4,716 | 1,987 |
BOK Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Interest expense | 2,318 | 835 | 4,286 | 1,668 |
Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Amortization of deferred financing costs | $ 215 | $ 160 | $ 430 | $ 319 |
DEBT - Schedule of Long-term De
DEBT - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Total long-term debt, net | $ 233,909 | $ 239,444 |
Secured Debt | Credit Facility | ||
Debt Instrument [Line Items] | ||
Less: Deferred financing costs, net | (2,665) | (3,095) |
Term Loan | Secured Debt | Credit Facility | ||
Debt Instrument [Line Items] | ||
Term Loan Facility amounts outstanding | 30,574 | 41,539 |
Revolving Credit Facility | Secured Debt | Credit Facility | ||
Debt Instrument [Line Items] | ||
Term Loan Facility amounts outstanding | $ 206,000 | $ 201,000 |
DEFERRED REVENUE - Summary of D
DEFERRED REVENUE - Summary of Deferred Revenue, Current Portion (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue, current portion | $ 26,575 | $ 22,158 |
Total deferred revenue, net of current portion | 956 | 2,022 |
Customer prepayments, current portion | ||
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue, current portion | 2,875 | 1,763 |
Total deferred revenue, net of current portion | 956 | 2,022 |
Minimum monthly commitment fees | ||
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue, current portion | $ 23,700 | $ 20,395 |
COLLABORATIVE ARRANGEMENT - Nar
COLLABORATIVE ARRANGEMENT - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Pipeline fees | $ 5,338 | $ 4,460 | $ 10,052 | $ 6,403 | |
Prepaid pipeline fees | $ 7,100 | $ 7,100 | $ 6,400 |
TRANSACTIONS WITH RELATED PAR51
TRANSACTIONS WITH RELATED PARTIES - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Nov. 17, 2015owner | |
Related Party Transaction [Line Items] | ||||||
Selling, general and administrative costs | $ 2,856,000 | $ 2,233,000 | $ 6,620,000 | $ 4,450,000 | ||
Accounts payable and accrued expenses — related party | 295,000 | 295,000 | $ 232,000 | |||
Accounts receivable — related party | 209,000 | 209,000 | 1,889,000 | |||
Deferred revenue, current portion — related party | 5,764,000 | $ 5,764,000 | 5,485,000 | |||
USD Partners GP LLC | General Partner | ||||||
Related Party Transaction [Line Items] | ||||||
General partner interest (as percent) | 2.00% | |||||
USDG | Limited Partner | ||||||
Related Party Transaction [Line Items] | ||||||
Limited partner interest, percentage | 49.90% | |||||
USDG | Limited Partner | ||||||
Related Party Transaction [Line Items] | ||||||
Transition services agreement expenses - related party | 0 | 1,300,000 | $ 0 | 2,900,000 | ||
Accounts receivable — related party | 0 | 0 | 0 | |||
USDG | Omnibus Agreement | Limited Partner | ||||||
Related Party Transaction [Line Items] | ||||||
Selling, general and administrative costs | 1,400,000 | 1,100,000 | 2,900,000 | 2,300,000 | ||
Accounts payable and accrued expenses — related party | 300,000 | 300,000 | 200,000 | |||
USD Marketing | ||||||
Related Party Transaction [Line Items] | ||||||
Accounts payable and accrued expenses — related party | 0 | 0 | 1,700,000 | |||
Deferred revenue, current portion — related party | 4,500,000 | 4,500,000 | $ 4,200,000 | |||
Fleet Services - Related Party | Variable Interest Entity, Not Primary Beneficiary | ||||||
Related Party Transaction [Line Items] | ||||||
Revenue from related parties | $ 400,000 | $ 500,000 | 800,000 | $ 1,100,000 | ||
Casper Crude to Rail Holdings, LLC | Cogent | Transition Services Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Transition services agreement expenses - related party | $ 52,000 | |||||
Officer | Casper Crude to Rail Holdings, LLC | Cogent | Transition Services Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Number of officers who are principle owners of Cogent | owner | 2 |
TRANSACTIONS WITH RELATED PAR52
TRANSACTIONS WITH RELATED PARTIES - Schedule of Variable Interest Entities (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Variable Interest Entity [Line Items] | ||
Total assets | $ 209 | $ 196 |
Total liabilities | 2,191 | 2,829 |
Maximum exposure to loss | 0 | 0 |
Accounts Receivable - Related Party | ||
Variable Interest Entity [Line Items] | ||
Total assets | 209 | 196 |
Total liabilities | 0 | 0 |
Maximum exposure to loss | 0 | 0 |
Deferred Revenue, Current Portion - Related Party | ||
Variable Interest Entity [Line Items] | ||
Total assets | 0 | 0 |
Total liabilities | 1,288 | 1,287 |
Maximum exposure to loss | 0 | 0 |
Deferred Revenue, Noncurrent Portion - Related Party | ||
Variable Interest Entity [Line Items] | ||
Total assets | 0 | 0 |
Total liabilities | 903 | 1,542 |
Maximum exposure to loss | $ 0 | $ 0 |
TRANSACTIONS WITH RELATED PAR53
TRANSACTIONS WITH RELATED PARTIES - Schedule of Deferred Revenue, Current Portion - Related Party (Details) - USD Marketing - Related Party - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Related Party Transaction [Line Items] | ||||
Revenue from related parties | $ 2,926 | $ 3,050 | $ 5,745 | $ 4,558 |
Terminalling services | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | 1,756 | 1,803 | 3,406 | 1,803 |
Fleet Leases | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | 891 | 1,011 | 1,781 | 2,221 |
Fleet services | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | 279 | 214 | 558 | 472 |
Freight And Other Reimbursables | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | $ 0 | $ 22 | $ 0 | $ 62 |
TRANSACTIONS WITH RELATED PAR54
TRANSACTIONS WITH RELATED PARTIES - Schedule of Cash Distributions (Details) - USD ($) $ in Thousands | Feb. 19, 2016 | May 15, 2015 | Jun. 30, 2016 |
USDG | |||
Related Party Transaction [Line Items] | |||
Amount Paid to USDG | $ 3,467 | $ 3,554 | $ 7,021 |
USD Group LLC | |||
Related Party Transaction [Line Items] | |||
Amount Paid to USD Partners GP LLC | $ 138 | $ 142 | $ 280 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | Dec. 31, 2014railcar_unit_train |
Loss Contingencies [Line Items] | |
Number of railcars | 160 |
Corrosion | |
Loss Contingencies [Line Items] | |
Number of railcars | 130 |
SEGMENT REPORTING - Narrative (
SEGMENT REPORTING - Narrative (Details) | 6 Months Ended |
Jun. 30, 2016Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
SEGMENT REPORTING - Summary of
SEGMENT REPORTING - Summary of Reportable Segment Data for Continuing Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues | ||||
Railroad incentives | $ 22 | $ 18 | $ 37 | $ 27 |
Fleet leases | 647 | 1,906 | 1,290 | 3,784 |
Freight and other reimbursables | 350 | 531 | 733 | 1,487 |
Total revenues | 27,878 | 20,395 | 54,235 | 33,903 |
Operating costs | ||||
Subcontracted rail services | 2,026 | 2,222 | 4,069 | 4,449 |
Pipeline fees | 5,338 | 4,460 | 10,052 | 6,403 |
Fleet leases | 1,538 | 2,917 | 3,071 | 6,005 |
Freight and other reimbursables | 350 | 553 | 733 | 1,549 |
Selling, general and administrative | 4,295 | 3,340 | 9,551 | 6,736 |
Depreciation and amortization | 4,914 | 1,096 | 9,819 | 2,189 |
Total operating costs | 18,461 | 14,588 | 37,295 | 27,331 |
Operating income | 9,417 | 5,807 | 16,940 | 6,572 |
Interest expense | 2,533 | 995 | 4,716 | 1,987 |
Loss (gain) associated with derivative instruments | (253) | 218 | 1,270 | (1,731) |
Foreign currency transaction loss (gain) | (15) | (42) | (145) | (383) |
Provision for (benefit from) income taxes | 1,917 | 1,984 | 3,714 | 2,006 |
Net income | 5,235 | 2,652 | 7,385 | 4,693 |
Goodwill | 33,970 | 33,970 | ||
Related Party | ||||
Revenues | ||||
Fleet leases | 891 | 1,011 | 1,781 | 2,221 |
Freight and other reimbursables | 0 | 22 | 0 | 62 |
Terminalling services | ||||
Revenues | ||||
Terminalling services | 23,459 | 14,279 | 45,482 | 22,666 |
Terminalling services | Related Party | ||||
Revenues | ||||
Terminalling services | 1,756 | 1,803 | 3,406 | 1,803 |
Fleet services | ||||
Revenues | ||||
Terminalling services | 69 | 155 | 138 | 311 |
Fleet leases | 647 | 1,906 | 1,290 | 3,784 |
Fleet services | Related Party | ||||
Revenues | ||||
Terminalling services | 684 | 670 | 1,368 | 1,542 |
Fleet leases | 891 | 1,011 | 1,781 | 2,221 |
Operating Segments | Terminalling services | ||||
Revenues | ||||
Terminalling services | 23,459 | 14,279 | 45,482 | 22,666 |
Railroad incentives | 22 | 18 | 37 | 27 |
Freight and other reimbursables | 19 | 19 | ||
Total revenues | 25,256 | 16,100 | 48,944 | 24,496 |
Operating costs | ||||
Subcontracted rail services | 2,026 | 2,222 | 4,069 | 4,449 |
Pipeline fees | 5,338 | 4,460 | 10,052 | 6,403 |
Freight and other reimbursables | 19 | 19 | ||
Selling, general and administrative | 1,748 | 1,248 | 3,797 | 2,542 |
Depreciation and amortization | 4,914 | 1,096 | 9,819 | 2,189 |
Total operating costs | 14,045 | 9,026 | 27,756 | 15,583 |
Operating income | 11,211 | 7,074 | 21,188 | 8,913 |
Interest expense | 352 | 572 | 682 | 1,174 |
Loss (gain) associated with derivative instruments | (253) | 218 | 1,270 | (1,731) |
Foreign currency transaction loss (gain) | 5 | 8 | (75) | 54 |
Provision for (benefit from) income taxes | 1,948 | 1,973 | 3,731 | 1,980 |
Net income | 9,159 | 4,303 | 15,580 | 7,436 |
Goodwill | 33,970 | 33,970 | ||
Operating Segments | Terminalling services | Related Party | ||||
Revenues | ||||
Terminalling services | 1,756 | 1,803 | 3,406 | 1,803 |
Operating Segments | Fleet services | ||||
Revenues | ||||
Terminalling services | 69 | 155 | 138 | 311 |
Fleet leases | 647 | 1,906 | 1,290 | 3,784 |
Freight and other reimbursables | 331 | 531 | 714 | 1,487 |
Total revenues | 2,622 | 4,295 | 5,291 | 9,407 |
Operating costs | ||||
Fleet leases | 1,538 | 2,917 | 3,071 | 6,005 |
Freight and other reimbursables | 331 | 553 | 714 | 1,549 |
Selling, general and administrative | 298 | 205 | 547 | 464 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Total operating costs | 2,167 | 3,675 | 4,332 | 8,018 |
Operating income | 455 | 620 | 959 | 1,389 |
Interest expense | 0 | 0 | 0 | 0 |
Loss (gain) associated with derivative instruments | 0 | 0 | 0 | 0 |
Foreign currency transaction loss (gain) | (20) | (50) | (70) | (27) |
Provision for (benefit from) income taxes | (32) | 10 | (18) | 25 |
Net income | 507 | 660 | 1,047 | 1,391 |
Goodwill | 0 | 0 | ||
Operating Segments | Fleet services | Related Party | ||||
Revenues | ||||
Terminalling services | 684 | 670 | 1,368 | 1,542 |
Fleet leases | 891 | 1,011 | 1,781 | 2,221 |
Freight and other reimbursables | 0 | 22 | 0 | 62 |
Corporate | ||||
Operating costs | ||||
Selling, general and administrative | 2,249 | 1,887 | 5,207 | 3,730 |
Depreciation and amortization | 0 | 0 | ||
Total operating costs | 2,249 | 1,887 | 5,207 | 3,730 |
Operating income | (2,249) | (1,887) | (5,207) | (3,730) |
Interest expense | 2,181 | 423 | 4,034 | 813 |
Loss (gain) associated with derivative instruments | 0 | 0 | 0 | 0 |
Foreign currency transaction loss (gain) | 0 | 0 | 0 | (410) |
Provision for (benefit from) income taxes | 1 | 1 | 1 | 1 |
Net income | (4,431) | $ (2,311) | (9,242) | $ (4,134) |
Goodwill | $ 0 | $ 0 |
SEGMENT REPORTING - Reconciliat
SEGMENT REPORTING - Reconciliation of Adjusted EBITDA to Loss from Continuing Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Adjusted EBITDA | ||||
Services Adjusted EBITDA | $ 16,270 | $ 9,911 | $ 30,679 | $ 20,220 |
Add (deduct): | ||||
Amortization of deferred financing costs | 215 | 160 | 430 | 319 |
Total change in deferred income tax | (50) | 878 | (96) | 878 |
Changes in accounts receivable and other assets | 458 | (2,249) | (1,507) | 4,845 |
Accounts payable and accrued expenses | (1,112) | (1,207) | (1,937) | (2,245) |
Deferred revenue and other liabilities | 1,555 | 3,118 | 2,100 | 12,629 |
Change in restricted cash | (1,793) | 837 | 633 | (323) |
Interest expense | (2,533) | (995) | (4,716) | (1,987) |
Provision for income taxes | (1,917) | (1,984) | (3,714) | (2,006) |
Foreign currency transaction loss (gain) | (15) | (42) | (145) | (383) |
Deferred revenue related to minimum commitment fees | (424) | (1,550) | (1,187) | (8,380) |
Net cash provided by operating activities | 13,354 | 9,785 | 22,578 | 15,289 |
Operating Segments | Terminalling services | ||||
Segment Adjusted EBITDA | ||||
Services Adjusted EBITDA | 17,095 | 10,504 | 33,230 | 21,160 |
Add (deduct): | ||||
Interest expense | (352) | (572) | (682) | (1,174) |
Provision for income taxes | (1,948) | (1,973) | (3,731) | (1,980) |
Foreign currency transaction loss (gain) | 5 | 8 | (75) | 54 |
Operating Segments | Fleet services | ||||
Segment Adjusted EBITDA | ||||
Services Adjusted EBITDA | 455 | 620 | 959 | 1,389 |
Add (deduct): | ||||
Interest expense | 0 | 0 | 0 | 0 |
Provision for income taxes | 32 | (10) | 18 | (25) |
Foreign currency transaction loss (gain) | (20) | (50) | (70) | (27) |
Corporate | ||||
Segment Adjusted EBITDA | ||||
Services Adjusted EBITDA | (1,280) | (1,213) | (3,510) | (2,329) |
Add (deduct): | ||||
Interest expense | (2,181) | (423) | (4,034) | (813) |
Provision for income taxes | (1) | (1) | (1) | (1) |
Foreign currency transaction loss (gain) | $ 0 | $ 0 | $ 0 | $ (410) |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)subsidiary | Jun. 30, 2015USD ($) | Dec. 31, 2016 | Dec. 31, 2015USD ($) | |
Operating Loss Carryforwards [Line Items] | ||||||
Number of subsidiaries taxable as a corporation | subsidiary | 1 | |||||
Income before provision for income taxes | $ 7,152 | $ 4,636 | $ 11,099 | $ 6,699 | ||
Federal statutory income tax rate | 34.00% | |||||
Potential reduction to income tax expense | 4,500 | |||||
Canada | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Operating loss carryforwards | $ 5,700 | $ 5,700 | $ 4,900 | |||
Forecast | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Effective income tax rate | 25.00% | |||||
Internal Revenue Service (IRS) | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Effective income tax rate | 34.00% | |||||
Net operating loss carryforwards to offset our taxable income | $ 400 | $ 700 | ||||
Canada Revenue Agency | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Federal and provincial income tax rate (as percent) | 27.00% | 27.00% | ||||
State and Local Jurisdiction | Canada Revenue Agency | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Federal statutory income tax rate | 15.00% | |||||
Provincial tax rate (as percent) | 12.00% | 10.00% | 11.00% | |||
Foreign | Canada Revenue Agency | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Effective income tax rate | 18.00% | 16.00% | ||||
Net operating loss carryforwards to offset our taxable income | $ 1,500 | $ 2,600 | ||||
Subsidiaries [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Income before provision for income taxes | $ 900 | $ 1,200 | ||||
Subsidiaries [Member] | US | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Operating loss carryforwards | $ 1,200 | $ 1,200 |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Tax Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Current income tax expense | ||||
U.S. federal income tax | $ 0 | $ 0 | $ 0 | $ 0 |
State income tax (benefit) | (7) | 21 | 30 | 43 |
Canadian federal and provincial income taxes | 1,974 | 1,085 | 3,780 | 1,085 |
Total current income tax expense | 1,967 | 1,106 | 3,810 | 1,128 |
Deferred income tax | ||||
Canadian federal and provincial income tax change | (50) | 878 | (96) | 878 |
Total change in deferred income tax | (50) | 878 | (96) | 878 |
Total income tax expense | $ 1,917 | $ 1,984 | $ 3,714 | $ 2,006 |
INCOME TAXES - Schedule of Effe
INCOME TAXES - Schedule of Effective Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Contingency [Line Items] | ||||
Income tax expense at the U.S. federal statutory rate | $ 2,432 | $ 1,577 | $ 3,774 | $ 2,278 |
Loss attributable to partnership not subject to income tax | 215 | 551 | 1,159 | 420 |
Foreign income tax rate differential | (515) | (583) | (959) | (667) |
Other | (94) | (18) | (62) | (18) |
State income tax (benefit) | (7) | 21 | 30 | 43 |
Change in valuation allowance | (114) | 436 | (228) | (50) |
Total income tax expense | $ 1,917 | $ 1,984 | $ 3,714 | $ 2,006 |
INCOME TAXES - Schedule of Defe
INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Deferred income tax assets | ||
Deferred revenues | $ 631 | $ 1,212 |
Capital carryforwards | 454 | 424 |
Operating loss carryforwards | 407 | 7 |
Deferred income tax liabilities | ||
Prepaid expenses | (750) | (673) |
Property and equipment | (703) | (749) |
Total deferred tax | 2,945 | 3,065 |
Valuation allowance | (742) | (970) |
Net deferred income tax liability | 2,203 | 2,095 |
U.S. | ||
Deferred income tax assets | ||
Deferred revenues | 631 | 1,212 |
Capital carryforwards | 0 | 0 |
Operating loss carryforwards | 407 | 7 |
Deferred income tax liabilities | ||
Prepaid expenses | (750) | (673) |
Property and equipment | 0 | 0 |
Total deferred tax | 1,788 | 1,892 |
Valuation allowance | (288) | (546) |
Net deferred income tax liability | 1,500 | 1,346 |
Foreign | ||
Deferred income tax assets | ||
Deferred revenues | 0 | 0 |
Capital carryforwards | 454 | 424 |
Operating loss carryforwards | 0 | 0 |
Deferred income tax liabilities | ||
Prepaid expenses | 0 | 0 |
Property and equipment | (703) | (749) |
Total deferred tax | 1,157 | 1,173 |
Valuation allowance | (454) | (424) |
Net deferred income tax liability | $ 703 | $ 749 |
DERIVATIVE FINANCIAL INSTRUME63
DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) CAD in Millions | Jun. 30, 2016CADcollar_arrangement$ / CAD | Jun. 30, 2015CADcollar_arrangement$ / CAD |
Foreign Exchange Option/Maturing in 2016 | ||
Derivative [Line Items] | ||
Number of derivative instruments held | collar_arrangement | 4 | |
Notional Amount | CAD | CAD 32 | |
Exchange rate floor | $ / CAD | 0.84 | |
Exchange rate cap | $ / CAD | 0.86 | |
Foreign Exchange Option/Maturing in 2016 | Minimum | ||
Derivative [Line Items] | ||
Notional Amount | CAD | CAD 7.9 | |
Foreign Exchange Option/Maturing in 2016 | Maximum | ||
Derivative [Line Items] | ||
Notional Amount | CAD | CAD 8.1 | |
Forward Contract Maturing in 2017 | ||
Derivative [Line Items] | ||
Number of derivative instruments held | collar_arrangement | 4 | |
Notional Amount | CAD | CAD 33.5 | |
Number of derivative instruments maturing each quarter | collar_arrangement | 1 | |
Exchange rate floor | $ / CAD | 0.7804 | |
Exchange rate cap | $ / CAD | 0.7809 |
DERIVATIVE FINANCIAL INSTRUME64
DERIVATIVE FINANCIAL INSTRUMENTS - Derivative Positions Included in the Consolidated Balance Sheets at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | ||
Derivative asset (liability) | $ 1,399 | $ 3,705 |
Other current assets | ||
Derivative [Line Items] | ||
Derivative asset (liability) | 1,248 | 3,705 |
Non-current assets | ||
Derivative [Line Items] | ||
Derivative asset (liability) | $ 151 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME65
DERIVATIVE FINANCIAL INSTRUMENTS - Gain (Loss) on Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Loss (gain) associated with derivative instruments | $ (253) | $ 218 | $ 1,270 | $ (1,731) |
Foreign Exchange Contract | Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Loss (gain) associated with derivative instruments | $ (253) | $ 218 | $ 1,270 | $ (1,731) |
DERIVATIVE FINANCIAL INSTRUME66
DERIVATIVE FINANCIAL INSTRUMENTS - Summary of Fair Values of Outstanding Foreign Currency Options (Details) $ in Thousands | Jun. 30, 2016USD ($)$ / option | Jun. 30, 2016CAD$ / option | Dec. 31, 2015USD ($) | Jun. 30, 2015CAD |
Derivative [Line Items] | ||||
Derivative asset (liability) | $ | $ 1,399 | $ 3,705 | ||
Forward Contract Maturing Match 31, 2017 [Member] | Puts (purchased) | ||||
Derivative [Line Items] | ||||
Notional | CAD | CAD 8,300,000 | |||
Derivative, Forward Exchange Rate | 0.7804 | 0.7804 | ||
Derivative, Forward Contacts, Market Price | 0.7715 | 0.7715 | ||
Derivative asset (liability) | $ | $ 74 | |||
Foreign Exchange Option/Maturing in 2016 [Member] | ||||
Derivative [Line Items] | ||||
Notional | CAD | CAD 32,000,000 | |||
Foreign Exchange Option/Maturing in 2016 [Member] | Calls (written) | ||||
Derivative [Line Items] | ||||
Derivative asset (liability) | $ | $ 1,099 | 3,705 | ||
Foreign Exchange Option/Maturing in March 2016 [Member] | Puts (purchased) | ||||
Derivative [Line Items] | ||||
Notional | CAD | CAD 7,907,580 | |||
Strike Price | 0.84 | 0.84 | ||
Market Price | 0 | 0 | ||
Derivative asset (liability) | $ | $ 0 | 921 | ||
Foreign Exchange Option/Maturing in March 2016 [Member] | Calls (written) | ||||
Derivative [Line Items] | ||||
Notional | CAD | CAD 7,907,580 | |||
Strike Price | 0.86 | 0.86 | ||
Market Price | 0 | 0 | ||
Derivative asset (liability) | $ | $ 0 | 0 | ||
Foreign Exchange Option/Maturing in June 2016 [Member] | Puts (purchased) | ||||
Derivative [Line Items] | ||||
Notional | CAD | CAD 7,939,530 | |||
Strike Price | 0.84 | 0.84 | ||
Market Price | 0 | 0 | ||
Derivative asset (liability) | $ | $ 0 | 921 | ||
Foreign Exchange Option/Maturing in June 2016 [Member] | Calls (written) | ||||
Derivative [Line Items] | ||||
Notional | CAD | CAD 7,939,530 | |||
Strike Price | 0.86 | 0.86 | ||
Market Price | 0 | 0 | ||
Derivative asset (liability) | $ | $ 0 | 0 | ||
Foreign Exchange Option/Maturing in September 2016 [Member] | Puts (purchased) | ||||
Derivative [Line Items] | ||||
Notional | CAD | CAD 8,053,380 | |||
Strike Price | 0.84 | 0.84 | ||
Market Price | 0.7718 | 0.7718 | ||
Derivative asset (liability) | $ | $ 546 | 931 | ||
Foreign Exchange Option/Maturing in September 2016 [Member] | Calls (written) | ||||
Derivative [Line Items] | ||||
Notional | CAD | CAD 8,053,380 | |||
Strike Price | 0.86 | 0.86 | ||
Market Price | 0.7718 | 0.7718 | ||
Derivative asset (liability) | $ | $ (1) | (3) | ||
Foreign Exchange Option/Maturing in December 2016 [Member] | Puts (purchased) | ||||
Derivative [Line Items] | ||||
Notional | CAD | CAD 8,110,800 | |||
Strike Price | 0.84 | 0.84 | ||
Market Price | 0.7718 | 0.7718 | ||
Derivative asset (liability) | $ | $ 564 | 941 | ||
Foreign Exchange Option/Maturing in December 2016 [Member] | Calls (written) | ||||
Derivative [Line Items] | ||||
Notional | CAD | CAD 8,110,800 | |||
Strike Price | 0.86 | 0.86 | ||
Market Price | 0.7718 | 0.7718 | ||
Derivative asset (liability) | $ | $ (10) | $ (6) | ||
Forward Contract Maturing June 30, 2017 [Member] | Puts (purchased) | ||||
Derivative [Line Items] | ||||
Notional | CAD | CAD 8,400,000 | |||
Derivative, Forward Exchange Rate | 0.7805 | 0.7805 | ||
Derivative, Forward Contacts, Market Price | 0.7716 | 0.7716 | ||
Derivative asset (liability) | $ | $ 75 | |||
Forward Contract Maturing September 29, 2017 [Member] | Puts (purchased) | ||||
Derivative [Line Items] | ||||
Notional | CAD | CAD 8,400,000 | |||
Derivative, Forward Exchange Rate | 0.7807 | 0.7807 | ||
Derivative, Forward Contacts, Market Price | 0.7717 | 0.7717 | ||
Derivative asset (liability) | $ | $ 75 | |||
Forward Contract Maturing December 29, 2017 [Member] | Puts (purchased) | ||||
Derivative [Line Items] | ||||
Notional | CAD | CAD 8,400,000 | |||
Derivative, Forward Exchange Rate | 0.7809 | 0.7809 | ||
Derivative, Forward Contacts, Market Price | 0.7718 | 0.7718 | ||
Derivative asset (liability) | $ | $ 76 | |||
Forward Contract Maturing in 2017 | ||||
Derivative [Line Items] | ||||
Notional | CAD | CAD 33,500,000 | |||
Forward Contract Maturing in 2017 | Puts (purchased) | ||||
Derivative [Line Items] | ||||
Derivative asset (liability) | $ | $ 300 | |||
Minimum | Foreign Exchange Option/Maturing in 2016 [Member] | ||||
Derivative [Line Items] | ||||
Notional | CAD | CAD 7,900,000 |
DERIVATIVE FINANCIAL INSTRUME67
DERIVATIVE FINANCIAL INSTRUMENTS - Offsetting Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Offsetting Derivatives [Abstract] | ||
Fair value of derivatives — gross presentation | $ 1,399 | $ 3,705 |
Effects of netting arrangements | 0 | 0 |
Fair value of derivatives — net presentation | 1,399 | 3,705 |
Current assets | ||
Offsetting Derivative Assets: | ||
Fair value of derivatives — gross presentation | 1,259 | 3,714 |
Effects of netting arrangements | (11) | (9) |
Fair value of derivatives — net presentation | 1,248 | 3,705 |
Non-current assets | ||
Offsetting Derivative Assets: | ||
Fair value of derivatives — gross presentation | 151 | 0 |
Effects of netting arrangements | 0 | 0 |
Fair value of derivatives — net presentation | 151 | 0 |
Offsetting Derivatives [Abstract] | ||
Fair value of derivatives — net presentation | 151 | 0 |
Current liabilities | ||
Offsetting Derivative Liabilities [Abstract] | ||
Fair value of derivatives — gross presentation | (11) | (9) |
Effects of netting arrangements | 11 | 9 |
Fair value of derivatives — net presentation | 0 | 0 |
Non-current liabilities | ||
Offsetting Derivative Liabilities [Abstract] | ||
Fair value of derivatives — gross presentation | 0 | 0 |
Effects of netting arrangements | 0 | 0 |
Fair value of derivatives — net presentation | $ 0 | $ 0 |
PARTNERS' CAPITAL (Details)
PARTNERS' CAPITAL (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016$ / shares | Mar. 31, 2016shares | Jun. 30, 2015$ / shares | Jun. 30, 2016quarterinstallment$ / sharesshares | Jun. 30, 2015shares | |
Limited Partners' Capital Account [Line Items] | |||||
Targeted annual distribution amount (USD per share) | $ / shares | $ 1.26 | $ 1.16 | $ 1.15 | ||
Targeted quarterly distribution (USD per share) | $ / shares | $ 0.2875 | ||||
Limited Partner | Common Units | |||||
Limited Partners' Capital Account [Line Items] | |||||
Conversion of units (in units) | 2,138,959 | ||||
Limited Partner | Subordinated Units | |||||
Limited Partners' Capital Account [Line Items] | |||||
Conversion of units (in units) | (2,092,709) | ||||
First vesting tranche | Limited Partner | Capital Unit, Class A | |||||
Limited Partners' Capital Account [Line Items] | |||||
Number of vesting installments | installment | 4 | ||||
Vesting period | 4 years | ||||
Conversion factor | 1 | ||||
Vested (in shares) | 46,250 | 0 | |||
Conversion ratio | 1 | ||||
Number of quarters distributions paid for | quarter | 4 | ||||
First vesting tranche | Limited Partner | Class A Units | |||||
Limited Partners' Capital Account [Line Items] | |||||
Conversion of units (in units) | (46,250) | ||||
First vesting tranche | Limited Partner | Common Units | |||||
Limited Partners' Capital Account [Line Items] | |||||
Conversion of units (in units) | 46,250 | ||||
First vesting tranche | Limited Partner | Subordinated Units | |||||
Limited Partners' Capital Account [Line Items] | |||||
Conversion ratio | 1 | ||||
Number of quarters distributions paid for | quarter | 4 | ||||
Conversion of units (in units) | 2,092,709 | ||||
Conversion on units, percentage | 20.00% | ||||
Minimum period to elapse before eligibility of conversion of units | 12 months | ||||
Second vesting tranche | Limited Partner | Capital Unit, Class A | |||||
Limited Partners' Capital Account [Line Items] | |||||
Conversion factor | 1.5 | ||||
Third vesting tranche | Limited Partner | Capital Unit, Class A | |||||
Limited Partners' Capital Account [Line Items] | |||||
Conversion factor | 1.75 | ||||
Last vesting tranche | Limited Partner | Capital Unit, Class A | |||||
Limited Partners' Capital Account [Line Items] | |||||
Conversion factor | 2 | ||||
LTIP | First vesting tranche | Limited Partner | Common Units | |||||
Limited Partners' Capital Account [Line Items] | |||||
Conversion of units (in units) | 95,910 | ||||
Phantom Share Units (PSUs) | LTIP | First vesting tranche | Limited Partner | |||||
Limited Partners' Capital Account [Line Items] | |||||
Vested (in shares) | 107,942 | ||||
Units retained (in shares) | 12,032 |
UNIT BASED COMPENSATION - Narra
UNIT BASED COMPENSATION - Narrative (Details) $ / shares in Units, $ in Thousands | Feb. 22, 2016 | Jun. 30, 2016USD ($)$ / sharesshares | Mar. 31, 2016shares | Jun. 30, 2015USD ($)$ / shares | Jun. 30, 2016USD ($)quarterinstallment$ / sharesshares | Jun. 30, 2015USD ($)$ / sharesshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Forfeited units (in units) | 0 | 35,000 | ||||
Class A Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unit based compensation expense | $ | $ 248 | $ 287 | $ 534 | $ 838 | ||
Phantom Share Units (PSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unit based compensation expense | $ | 721 | $ 387 | $ 1,163 | $ 563 | ||
Award vesting period | 4 years | |||||
Unit based compensation expense, unrecognized | $ | $ 6,500 | $ 6,500 | ||||
Weighted average recognition period | 2 years 10 months 24 days | |||||
Phantom Share Units (PSUs) | Director | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 1 year | |||||
LTIP | Phantom Share Units (PSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Conversion ratio | 1 | 1 | ||||
Approved for grant | 574,873 | 419,551 | ||||
Authorized for issuance | 1,654,167 | 1,654,167 | ||||
Share remaining available | 704,029 | 704,029 | ||||
Limited Partner | Common Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Conversion of units (in units) | 2,138,959 | |||||
Limited Partner | Class A Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Forfeited units (in units) | 35,000 | |||||
First vesting tranche | Limited Partner | Capital Unit, Class A | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
Vested (in shares) | 46,250 | 0 | ||||
Number of quarters distributions paid for | quarter | 4 | |||||
Conversion ratio | 1 | |||||
Number of vesting installments | installment | 4 | |||||
First vesting tranche | Limited Partner | Common Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Conversion of units (in units) | 46,250 | |||||
Grant date average fair value (USD per share) | $ / shares | $ 25.71 | $ 25.71 | $ 25.71 | $ 25.71 | ||
First vesting tranche | Limited Partner | Class A Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Conversion of units (in units) | (46,250) | |||||
First vesting tranche | Limited Partner | LTIP | Common Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Conversion of units (in units) | 95,910 | |||||
First vesting tranche | Limited Partner | LTIP | Phantom Share Units (PSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vested (in shares) | 107,942 |
UNIT BASED COMPENSATION - Class
UNIT BASED COMPENSATION - Class A Units (Details) - shares | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||
Forfeited units (in units) | 0 | 35,000 |
Class A Units | ||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||
Partners' capital account beginning balance (in units) | 185,000 | 220,000 |
Partners' capital account ending balance (in units) | 138,750 | 185,000 |
Limited Partner | Class A Units | ||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||
Partners' capital account beginning balance (in units) | 185,000 | 220,000 |
Partners' capital account ending balance (in units) | 138,750 | 185,000 |
Forfeited units (in units) | 35,000 | |
Limited Partner | First vesting tranche | Capital Unit, Class A | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vested (in shares) | 46,250 | 0 |
UNIT BASED COMPENSATION - Long-
UNIT BASED COMPENSATION - Long-term Incentive Plan (Details) - LTIP - $ / shares | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Phantom Share Units (PSU) Equity Classified | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Grant date average fair value, beginning of period (USD per share) | $ 8.50 | $ 12.79 |
Granted (USD per share) | 6.39 | 12.80 |
Vested (USD per share) | 12.79 | |
Forfeited (USD per share) | 12.90 | |
Grant date average fair value, end of period (USD per share) | 12.75 | 0 |
Phantom Share Units (PSU) Liability Classified | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Grant date average fair value, beginning of period (USD per share) | 8.02 | 12.78 |
Granted (USD per share) | 6.39 | 12.78 |
Vested (USD per share) | 12.78 | |
Grant date average fair value, end of period (USD per share) | $ 12.78 | $ 0 |
Director or Independent Consultant | Phantom Share Units (PSU) Equity Classified | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Phantom units, beginning of period (in shares) | 24,045 | 0 |
Grants in period (in shares) | 64,830 | 20,442 |
Vested (in shares) | 20,442 | |
Forfeited (in shares) | 0 | |
Phantom units, end of period (in shares) | 68,433 | 20,442 |
Director or Independent Consultant | Phantom Share Units (PSU) Liability Classified | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Phantom units, beginning of period (in shares) | 10,256 | 0 |
Grants in period (in shares) | 21,610 | 10,256 |
Vested (in shares) | 10,256 | |
Phantom units, end of period (in shares) | 21,610 | 10,256 |
Employee | Phantom Share Units (PSU) Equity Classified | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Phantom units, beginning of period (in shares) | 349,976 | 0 |
Grants in period (in shares) | 471,412 | 367,548 |
Vested (in shares) | 87,500 | |
Forfeited (in shares) | 17,572 | |
Phantom units, end of period (in shares) | 733,888 | 349,976 |
Employee | Phantom Share Units (PSU) Liability Classified | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Phantom units, beginning of period (in shares) | 13,276 | 0 |
Grants in period (in shares) | 17,021 | 17,702 |
Vested (in shares) | 0 | |
Phantom units, end of period (in shares) | 30,297 | 17,702 |
UNIT BASED COMPENSATION - Phant
UNIT BASED COMPENSATION - Phantom Units Pursuant to Associated DERs (Details) - Distribution Equivalent Right - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-classified Phantom Units | $ 247 | $ 112 | $ 360 | $ 112 |
Liability-classified Phantom Units | 16 | 8 | 23 | 8 |
Total | $ 263 | $ 120 | $ 383 | $ 120 |
SUPPLEMENTAL CASH FLOW INFORM73
SUPPLEMENTAL CASH FLOW INFORMATION - Schedule of Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Supplemental Cash Flow Elements [Abstract] | ||
Cash paid for income taxes | $ 3,196 | $ 282 |
Cash paid for interest | $ 3,987 | $ 1,960 |
SUBSEQUENT EVENTS - Narrative (
SUBSEQUENT EVENTS - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 12, 2016 | Jul. 28, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 |
Subsequent Event [Line Items] | |||||
Targeted annual distribution amount (USD per share) | $ 1.26 | $ 1.16 | $ 1.15 | ||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Distribution (USD per share) | $ 0.0075 | ||||
Increase in distribution | 2.40% | ||||
Increase in distribution over minimum | 9.60% | ||||
Subsequent Event | Common Units | |||||
Subsequent Event [Line Items] | |||||
Partners' capital distribution amount per share (USD per share) | $ 0.315 | ||||
Targeted annual distribution amount (USD per share) | $ 1.26 | ||||
Forecast | Common Units | |||||
Subsequent Event [Line Items] | |||||
Distributions, limited partner | $ 3,500 | ||||
Forecast | Class A Units | |||||
Subsequent Event [Line Items] | |||||
Distributions, limited partner | 44 | ||||
Forecast | USDG | Common Units and Subordinated Units [Member] | |||||
Subsequent Event [Line Items] | |||||
Distributions, limited partner | 3,600 | ||||
Forecast | USD Partners GP LLC | |||||
Subsequent Event [Line Items] | |||||
Distributions, general partner | $ 145 |