Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 28, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-36674 | |
Entity Registrant Name | USD PARTNERS LP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 30-0831007 | |
Entity Address, Address Line One | 811 Main Street | |
Entity Address, Address Line Two | Suite 2800 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77002 | |
City Area Code | 281 | |
Local Phone Number | 291-0510 | |
Title of 12(b) Security | Common Units Representing Limited Partner Interests | |
Trading Symbol | USDP | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Shares Outstanding (in shares) | 33,758,607 | |
Entity Central Index Key | 0001610682 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenues | ||||
Total revenues | $ 19,471 | $ 33,741 | $ 40,597 | $ 69,527 |
Operating costs | ||||
Operating and maintenance | 1,015 | 3,217 | 2,776 | 6,834 |
Selling, general and administrative | 4,153 | 7,395 | 10,737 | 16,141 |
Gain on sale of business | 0 | 0 | (6,202) | 0 |
Depreciation and amortization | 1,723 | 5,765 | 3,629 | 11,604 |
Operating Expenses | 15,050 | 28,533 | 28,162 | 59,324 |
Operating income | 4,421 | 5,208 | 12,435 | 10,203 |
Interest expense | 4,479 | 2,097 | 8,920 | 3,599 |
Gain associated with derivative instruments | (4,755) | (812) | (2,905) | (6,896) |
Foreign currency transaction loss | 48 | 143 | 102 | 1,790 |
Other income, net | (82) | (4) | (116) | (27) |
Income before income taxes | 4,731 | 3,784 | 6,434 | 11,737 |
Provision for (benefit from) income taxes | 96 | (21) | (176) | 459 |
Net income | 4,635 | 3,805 | 6,610 | 11,278 |
Supplemental Income Statement Elements: | ||||
Net income attributable to limited partner interests | $ 4,635 | $ 3,805 | $ 6,610 | $ 12,647 |
Weighted average common units outstanding - basic (in shares) | 33,759 | 33,378 | 33,663 | 30,655 |
Casper Terminal | ||||
Operating costs | ||||
Gain on sale of business | $ 0 | $ 0 | $ (6,202) | $ 0 |
Provision for (benefit from) income taxes | $ 0 | |||
Common units | ||||
Supplemental Income Statement Elements: | ||||
Net income per common unit - basic (usd per share) | $ 0.14 | $ 0.12 | $ 0.20 | $ 0.42 |
Net income per common unit - diluted (usd per share) | $ 0.14 | $ 0.12 | $ 0.20 | $ 0.42 |
Weighted average common units outstanding - basic (in shares) | 33,759 | 33,378 | 33,663 | 30,426 |
Weighted average common units outstanding - diluted (in shares) | 33,759 | 33,378 | 33,663 | 30,426 |
Related party | ||||
Revenues | ||||
Revenues | $ 1,107 | $ 1,874 | $ 2,304 | $ 3,740 |
Operating costs | ||||
Operating and maintenance | 0 | 127 | 0 | 258 |
Selling, general and administrative | 1,795 | 2,565 | 3,979 | 7,889 |
Nonrelated Party | ||||
Operating costs | ||||
Operating and maintenance | 1,015 | 3,090 | 2,776 | 6,576 |
Selling, general and administrative | 2,358 | 4,830 | 6,758 | 8,252 |
Terminalling services | ||||
Revenues | ||||
Revenues | 18,364 | 31,704 | 38,103 | 65,527 |
Terminalling services | Related party | ||||
Revenues | ||||
Revenues | 732 | 662 | 1,446 | 1,317 |
Terminalling services | Nonrelated Party | ||||
Revenues | ||||
Revenues | 18,364 | 31,704 | 38,103 | 65,527 |
Fleet leases | Related party | ||||
Revenues | ||||
Revenues | 287 | 913 | 570 | 1,825 |
Fleet services | Related party | ||||
Revenues | ||||
Revenues | 86 | 299 | 171 | 598 |
Freight and other reimbursables | ||||
Revenues | ||||
Revenues | 0 | 163 | 190 | 260 |
Operating costs | ||||
Operating costs | 2 | 163 | 307 | 260 |
Freight and other reimbursables | Related party | ||||
Revenues | ||||
Revenues | 2 | 0 | 117 | 0 |
Freight and other reimbursables | Nonrelated Party | ||||
Revenues | ||||
Revenues | 0 | 163 | 190 | 260 |
Subcontracted rail services | ||||
Operating costs | ||||
Operating costs | 2,323 | 3,604 | 5,608 | 7,595 |
Pipeline fees | ||||
Operating costs | ||||
Operating costs | $ 5,834 | $ 8,389 | $ 11,307 | $ 16,890 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 4,635 | $ 3,805 | $ 6,610 | $ 11,278 |
Other comprehensive income (loss) — foreign currency translation | 1,183 | (1,788) | 1,269 | (1,194) |
Comprehensive income | $ 5,818 | $ 2,017 | $ 7,879 | $ 10,084 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 6,610 | $ 11,278 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 3,629 | 11,604 |
Gain associated with derivative instruments | (2,905) | (6,896) |
Settlement of derivative contracts | 611 | (608) |
Unit based compensation expense | 1,912 | 2,520 |
Gain on sale of business | (6,202) | 0 |
Loss associated with disposal of assets | 0 | 3 |
Deferred income taxes | 1 | (114) |
Amortization of deferred financing costs | 658 | 628 |
Changes in operating assets and liabilities: | ||
Prepaid expenses, inventory and other assets | 1,032 | (2,727) |
Net cash provided by (used in) operating activities | (1,888) | 15,448 |
Cash flows from investing activities: | ||
Additions of property and equipment | (375) | (288) |
Internal-use software development costs | 55 | 0 |
Net proceeds from the sale of business | 32,650 | 0 |
Acquisition of Hardisty South entities from Sponsor | 0 | (75,000) |
Net cash provided by (used in) investing activities | 32,220 | (75,288) |
Cash flows from financing activities: | ||
Distributions | (2,154) | (7,154) |
Payments for deferred financing costs | (203) | (13) |
Vested phantom units used for payment of participant taxes | (671) | (1,091) |
Proceeds from long-term debt | 0 | 75,000 |
Repayments of long-term debt | (19,100) | (12,396) |
Net cash provided by (used in) financing activities | (22,128) | 54,346 |
Effect of exchange rates on cash | 90 | 1,057 |
Net change in cash, cash equivalents and restricted cash | 8,294 | (4,437) |
Cash, cash equivalents and restricted cash — beginning of period | 5,780 | 12,717 |
Cash, cash equivalents and restricted cash — end of period | 14,074 | 8,280 |
Related party | ||
Changes in operating assets and liabilities: | ||
Accounts receivable | 91 | 1,717 |
Accounts payable and accrued expenses | (526) | (1,038) |
Deferred revenue and other liabilities | 49 | 366 |
Nonrelated Party | ||
Changes in operating assets and liabilities: | ||
Accounts receivable | (4) | 398 |
Accounts payable and accrued expenses | (97) | 3,361 |
Deferred revenue and other liabilities | $ (6,747) | $ (5,044) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 10,291 | $ 2,530 |
Restricted cash | 3,783 | 3,250 |
Prepaid expenses | 2,566 | 3,188 |
Assets held for sale | 19,141 | 0 |
Other current assets | 2,560 | 1,746 |
Total current assets | 40,425 | 13,292 |
Property and equipment, net | 62,847 | 106,894 |
Intangible assets, net | 55 | 3,526 |
Operating lease right-of-use assets | 1,578 | 1,508 |
Other non-current assets | 1,303 | 1,556 |
Total assets | 106,208 | 126,776 |
Current liabilities | ||
Long-term debt, current portion | 195,447 | 214,092 |
Operating lease liabilities, current | 847 | 700 |
Liabilities held for sale | 221 | 0 |
Total current liabilities | 204,981 | 230,936 |
Operating lease liabilities, non-current | 702 | 688 |
Total liabilities | 211,710 | 239,180 |
Commitments and contingencies | ||
Partners’ capital | ||
Accumulated other comprehensive loss | (2,872) | (4,141) |
Total partners’ capital | (105,502) | (112,404) |
Total liabilities and partners’ capital | 106,208 | 126,776 |
Nonrelated Party | ||
Current assets | ||
Accounts receivable, net | 1,766 | 2,169 |
Current liabilities | ||
Accounts payable and accrued expenses | 2,852 | 3,389 |
Deferred revenue | 1,746 | 3,562 |
Other current liabilities | 3,182 | 7,907 |
Other non-current liabilities | 5,894 | 7,556 |
Related party | ||
Current assets | ||
Accounts receivable, net | 318 | 409 |
Current liabilities | ||
Accounts payable and accrued expenses | 631 | 1,147 |
Deferred revenue | 0 | 128 |
Other current liabilities | 55 | 11 |
Other non-current liabilities | 133 | 0 |
Common units | ||
Partners’ capital | ||
Common units (33,758,607 and 33,381,187 outstanding at June 30, 2023 and December 31, 2022, respectively) | $ (102,630) | $ (108,263) |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Jun. 30, 2023 | Dec. 31, 2022 |
Common units | ||
Limited partners' units outstanding (in shares) | 33,758,607 | 33,381,187 |
CONSOLIDATED STATEMENTS OF PART
CONSOLIDATED STATEMENTS OF PARTNERS' CAPITAL - USD ($) $ in Thousands | Total | Accumulated other comprehensive income (loss) | Limited Partner | Limited Partner Common units | General Partner units |
Beginning balance (in shares) at Dec. 31, 2021 | 27,268,878,000 | 461,136,000 | |||
Beginning balance at Dec. 31, 2021 | $ (178) | $ 16,355 | $ 5,678 | ||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||
Common units issued for vested phantom units (in shares) | 359,417,000 | ||||
Common units issued for vested phantom units | $ (1,091) | ||||
Non-cash contribution to Hardisty South entities from Sponsor prior to acquisition | $ 18,207 | ||||
Net income (loss) | $ 11,278 | 12,647 | (1,369) | ||
Unit based compensation expense | 2,354 | ||||
Distributions | $ (7,095) | $ (59) | |||
Acquisition of Hardisty South entities from Sponsor and conversion of General Partner units (in shares) | (5,751,136,000) | (461,136,000) | |||
Acquisition of Hardisty South entities from Sponsor and conversion of General Partner units | $ (52,543) | $ (22,457) | |||
Cumulative translation adjustment | (1,194) | ||||
Ending balance (in shares) at Jun. 30, 2022 | 33,379,431,000 | 0 | |||
Ending balance at Jun. 30, 2022 | (30,745) | (1,372) | $ (29,373) | $ 0 | |
Beginning balance (in shares) at Mar. 31, 2022 | 27,619,909,000 | 461,136,000 | |||
Beginning balance at Mar. 31, 2022 | 416 | $ 21,835 | $ 22,457 | ||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||
Common units issued for vested phantom units (in shares) | 8,386,000 | ||||
Common units issued for vested phantom units | $ (39) | ||||
Net income (loss) | 3,805 | 3,805 | $ 0 | ||
Unit based compensation expense | 1,205 | ||||
Distributions | $ (3,636) | ||||
Acquisition of Hardisty South entities from Sponsor and conversion of General Partner units (in shares) | (5,751,136,000) | (461,136,000) | |||
Acquisition of Hardisty South entities from Sponsor and conversion of General Partner units | $ (52,543) | $ (22,457) | |||
Cumulative translation adjustment | (1,788) | ||||
Ending balance (in shares) at Jun. 30, 2022 | 33,379,431,000 | 0 | |||
Ending balance at Jun. 30, 2022 | (30,745) | (1,372) | $ (29,373) | $ 0 | |
Beginning balance (in shares) at Dec. 31, 2022 | 33,381,187,000 | 0 | |||
Beginning balance at Dec. 31, 2022 | (112,404) | (4,141) | $ (108,263) | $ 0 | |
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||
Common units issued for vested phantom units (in shares) | 377,420,000 | ||||
Common units issued for vested phantom units | $ (671) | ||||
Net income (loss) | 6,610 | 6,610 | 0 | ||
Unit based compensation expense | 1,848 | ||||
Distributions | $ (2,154) | $ 0 | |||
Cumulative translation adjustment | 1,269 | ||||
Ending balance (in shares) at Jun. 30, 2023 | 33,758,607,000 | 0 | |||
Ending balance at Jun. 30, 2023 | (105,502) | (2,872) | $ (102,630) | $ 0 | |
Beginning balance (in shares) at Mar. 31, 2023 | 33,758,607,000 | 0 | |||
Beginning balance at Mar. 31, 2023 | (4,055) | $ (108,130) | $ 0 | ||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||
Common units issued for vested phantom units (in shares) | 0 | ||||
Common units issued for vested phantom units | $ 0 | ||||
Net income (loss) | 4,635 | 4,635 | $ 0 | ||
Unit based compensation expense | 865 | ||||
Distributions | $ 0 | ||||
Cumulative translation adjustment | 1,183 | ||||
Ending balance (in shares) at Jun. 30, 2023 | 33,758,607,000 | 0 | |||
Ending balance at Jun. 30, 2023 | $ (105,502) | $ (2,872) | $ (102,630) | $ 0 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2023 | |
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 midstream infrastructure and complementary logistics solutions for crude oil, biofuels and other energy-related products. We generate substantially all of our operating cash flows from multi-year, take-or-pay contracts with primarily investment grade and other high credit quality customers, including major integrated oil companies, refiners and marketers. Our network of crude oil terminals facilitate the transportation of heavy crude oil from Western Canada to key demand centers across North America. Our operations include railcar loading and unloading, storage and blending in onsite tanks, inbound and outbound pipeline connectivity, truck transloading, as well as other related logistics services. We also provide one of our customers with leased railcars and fleet services to facilitate the transportation of liquid hydrocarbons by rail. We do not generally take ownership of the products that we handle, nor do we receive any payments from our customers based on the value of such products. A substantial amount of the operating cash flows related to the terminal services that we provide are generated from take-or-pay contracts with minimum monthly commitment fees and, as a result, are not directly related to actual throughput volumes at our crude oil terminals. Throughput volumes at our terminals are primarily influenced by the difference in price between Western Canadian Select, or WCS, and other grades of crude oil, commonly referred to as spreads, rather than absolute price levels. WCS spreads are influenced by several market factors, including the availability of supplies relative to the level of demand from refiners and other end users, the price and availability of alternative grades of crude oil, the availability of takeaway capacity, as well as transportation costs from supply areas to demand centers. On March 31, 2023, we completed our divestiture of all of the equity interests in our Casper Terminal, which included the Casper Crude to Rail, LLC and CCR Pipeline, LLC entities, for approximately $33 million in cash, subject to customary adjustments. Refer to Note 3. Acquisition and Dispositions — Casper Terminal Divestiture for additional details regarding this disposition. The Casper Terminal was included in our Terminalling Services segment. Basis of Presentation Our accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, 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, our unaudited interim consolidated financial statements contain all adjustments, consisting only of normal recurring adjustments, which our management considers necessary to present fairly our financial position as of June 30, 2023, our results of operations for the three and six months ended June 30, 2023 and 2022, and our cash flows for the six months ended June 30, 2023 and 2022. We derived our consolidated balance sheet as of December 31, 2022, from the audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022. Our results of operations for the three and six months ended June 30, 2023 and 2022 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, changes in the fair market value of our derivative instruments 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, 2022. Going Concern We evaluate at each annual and interim period whether there are conditions or events, considered in the aggregate, that raise substantial doubt about our ability to continue as a going concern within one year after the date that the consolidated financial statements are issued. Our evaluation is based on relevant conditions and events that are known and reasonably knowable at the date that the consolidated financial statements are issued. The maturity date of our Credit Agreement (as defined below) is November 2, 2023. As a result of the maturity date being within 12 months after the date that these financial statements were issued, the amounts due under our Credit Agreement have been included in our going concern assessment. Our ability to continue as a going concern is dependent on the refinancing or the extension of the maturity date of our Credit Agreement. If we are unable to refinance or extend the maturity date of our Credit Agreement, we do not currently have sufficient cash on hand or available liquidity to repay the maturing credit facility debt as it becomes due, nor do we expect cash flow from our current operations to provide sufficient funds for such repayment. In addition, there is uncertainty in our ability to remain in compliance with the covenants contained in our amended Credit Agreement for a period of 12 months after the date these financial statements were issued. Although we continue to focus on renewing, extending or replacing expired or expiring customer agreements at the Hardisty and Stroud Terminals, based on our current expectations regarding timing of any renewals, extensions or replacement of such agreements and the related pricing environment, we currently do not expect that we will be able to remain in compliance with the total leverage ratio and interest coverage covenants in the Credit Agreement for the third quarter of 2023. If we fail to comply with such covenants in the Credit Agreement, we would be in default under the terms of the Credit Agreement, which would entitle our lenders to declare all outstanding indebtedness thereunder to be immediately due and payable. We are currently not projected to have sufficient cash on hand or available liquidity to repay the Credit Agreement should the lenders not agree to a forbearance or provide a further waiver or amendment and declare all outstanding indebtedness thereunder to be immediately due and payable. In August 2023, we entered into an amendment to our Credit Agreement, pursuant to which, among other things, the lenders have agreed to forbear through and including October 10, 2023, from exercising any rights or remedies arising from certain defaults or events of default asserted by the Administrative Agent, which we disputed, or certain prospective defaults or events of default under the Credit Agreement and other loan documents arising from, among other things, any failures to disclose certain events that give or may give rise to a Material Adverse Effect, as defined in the Credit Agreement. Refer to Note 19. Subsequent Events — Credit Agreement Amendment for more information. The conditions described above raise substantial doubt about our ability to continue as a going concern for the next 12 months. We are currently in discussions with our lenders and other potential capital providers and pursuing plans to refinance or replace our Credit Agreement or extend and amend the current obligations under the Credit Agreement; however, we cannot make assurances that we will be successful in these efforts, or that any refinancing, extension or replacement would be on terms favorable to us. Moreover, our ability to refinance our outstanding indebtedness under, or extend the maturity date of, our Credit Agreement is expected to be negatively impacted to the extent we are unable to renew, extend or replace our customer agreements at the Hardisty and Stroud Terminals or experience further prolonged delays in doing so. Due to the substantial doubt about our ability to continue as a going concern discussed above, as of June 30, 2023, we have recorded a valuation allowance against our deferred tax asset that is associated with our Canadian entities. These consolidated financial statements do not include any other adjustments that might result from the outcome of this uncertainty, nor do they include adjustments to reflect the possible future effects of the recoverability and classification of recorded asset amounts and classifications of liabilities that might be necessary should we be unable to continue as a going concern. 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. Foreign Currency Translation We conduct a substantial portion of our operations in Canada, which we account for in the local currency, the Canadian dollar. We translate most Canadian dollar denominated balance sheet accounts into our reporting currency, the U.S. dollar, at the end of period exchange rate, while most accounts in our statement of operations accounts are translated into our reporting currency based on the average exchange rate for each monthly period. Fluctuations in the exchange rates 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 is the indirect owner of our general partner through its direct ownership of USDG and is currently owned by Energy Capital Partners, Goldman Sachs and certain of USD’s management team. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Assets Held For Sale We classify long-lived assets intended to be sold as held for sale in the period in which all of the following criteria are met: (1) management, having the authority to approve the action, commits to a plan to sell the asset or disposal group; (2) the asset or disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets; (3) an active program to locate a buyer and other actions required to complete the plan to sell the asset or disposal group have been initiated; (4) the sale of the asset or disposal group is probable, and transfer of the asset or disposal group is expected to qualify for recognition as a completed sale within one year, except if events or circumstances beyond our control extend the period of time required to sell the asset or disposal group beyond one year; (5) the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (6) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. We initially measure a long-lived asset or disposal group that is classified as held for sale at the lower of carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a long-lived asset or disposal group until the date of sale. We assess the fair value of a long-lived asset or disposal group less any costs to sell each reporting period it remains classified as held for sale and report any subsequent changes as an adjustment to the carrying value of the asset or disposal group, as long as the new carrying value does not exceed the carrying value of the asset at the time it was initially classified as held for sale. For the three and six months ended June 30, 2023 and 2022, there were no losses recorded on our held for sale assets. Upon determining that a long-lived asset or disposal group meets the criteria to be classified as held for sale, we discontinue depreciation and amortization and report long-lived assets and liabilities of the disposal group in the line items “ Assets held for sale ” and “ Liabilities held for sale ” in our consolidated balance sheets. Internal-use Software We capitalize certain internal-use software costs in accordance with Accounting Standard Codification, or ASC, 350-40, which are included in intangible assets. ASC 350-40 requires assets to be recorded at the cost to develop the asset and requires an intangible asset to be amortized over its useful life and for the useful life to be evaluated every reporting period to determine whether events or circumstances warrant a revision to the remaining period of amortization. If the estimate of useful life is changed, the remaining carrying amount of the intangible asset is amortized prospectively over the revised remaining useful life. We currently are amortizing these assets over a useful life of five years in the line item “ Depreciation and amortization ” in our consolidated statement of operations. Maintenance of and minor upgrades to internal-use software are classified as selling, general, and administrative expenses as incurred. Recently Adopted Accounting Pronouncements Liabilities — Supplier Finance Programs (ASU 2022-04) In September 2022, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update No. 2022-04, or ASU 2022-04, which amends Accounting Standards Codification Topic 405 to require that a buyer in a supplier finance program disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. To achieve that objective, the buyer should disclose qualitative and quantitative information about its supplier finance programs. In each annual reporting period, the buyer should disclose the key terms of the program, including a description of the payment terms and assets pledged as security or other forms of guarantees provided for the committed payment to the finance provider or intermediary. For the obligations that the buyer has confirmed as valid to the finance provider or intermediary the amount outstanding that remains unpaid by the buyer as of the end of the annual period, a description of where those obligations are presented in the balance sheet and a rollforward of those obligations during the annual period, including the amount of obligations confirmed and the amount of obligations subsequently paid should be disclosed. In each interim reporting period, the buyer should disclose the amount of obligations outstanding that the buyer has confirmed as valid to the finance provider or intermediary as of the end of the interim period. The pronouncement is effective for fiscal years beginning after December 15, 2022 including interim periods within those fiscal years, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. Early adoption was permitted. We adopted all the provisions of ASU 2022-04 on January 1, 2023. Refer to Note 10. Debt for additional details regarding our adoption of ASU 2022-04. |
ACQUISITIONS AND DISPOSITIONS
ACQUISITIONS AND DISPOSITIONS | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS AND DISPOSITIONS | ACQUISITIONS AND DISPOSITIONS Hardisty South Terminal Acquisition On April 6, 2022, we completed the acquisition of 100% of the entities owning the Hardisty South Terminal assets from USDG, exchanged our sponsor’s economic general partner interest in us for a non-economic general partner interest and eliminated our sponsor’s incentive distribution rights, or IDRs, for a total consideration of $75 million in cash and 5,751,136 common units representing non-cash consideration, that was made effective as of April 1, 2022. The cash portion was funded with borrowings from our Credit Agreement. The Hardisty South Terminal, which commenced operations in January 2019, primarily consists of railcar loading facilities with capacity of one and one-half 120-railcar unit trains of transloading capacity per day, or approximately 112,500 barrels per day, of takeaway capacity. We accounted for our acquisition of the Hardisty South Terminal as a business combination under common control, whereby we recognized the acquisition of identifiable assets at historical costs and recast our prior financial statements for all periods presented. Casper Terminal Divestiture On March 31, 2023 we completed our divestiture of 100% of the equity interests in our Casper Terminal, which included the Casper Crude to Rail, LLC and CCR Pipeline, LLC entities, for approximately $33.0 million in cash, subject to customary adjustments. The Casper Terminal entities had a carrying value of $26.8 million at the time of sale. The Casper Terminal was included in our Terminalling services segment. The Casper crude oil terminal, located in Casper, Wyoming, primarily consists of unit train-capable railcar loading 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 the Express Pipeline. We recognized a gain of $6.2 million from the sale of the terminal which we recorded as “ Gain on sale of business ” in our consolidated statement of operations. The gain on sale of business that resulted from the sale of the Casper Terminal was not subject to income tax as the entity is included within our partnership structure. Therefore, no impact was reflected within the “ Provision for (benefit from) income taxes ” recognized in the six months ended June 30, 2023 in our consolidated statements of operations. In connection with our divestiture of the Casper terminal, we entered into a transition services agreement with the buyer, pursuant to which we will provide certain administrative, customer support and information technology support services to the Casper terminal for not more than three months following the closing date, while the buyer transitions such services to their management. |
NET INCOME PER LIMITED PARTNER
NET INCOME PER LIMITED PARTNER INTEREST | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
NET INCOME PER LIMITED PARTNER INTEREST | NET INCOME PER LIMITED PARTNER INTEREST Our net income is attributed to limited partners, in accordance with their respective ownership percentages. For periods prior to the cancellation of the IDRs and conversion of the General Partner units to a non-economic General Partner interest that resulted from the acquisition of the Hardisty South entities that became effective April 1, 2022, we used the two-class method when calculating the net income per unit applicable to limited partners, because we had more than one type of participating securities. For the prior periods, the classes of participating securities included Common Units, General Partner Units and IDRs. Prior to the acquisition, our net earnings were allocated between the limited and general partners in accordance with our partnership agreement. As a result of the Hardisty South Terminal acquisition, the general partner units no longer participate in earnings or distributions, including IDRs. We determined basic and diluted net income per limited partner unit as set forth in the following tables: For the Three Months Ended June 30, 2023 Common General Total (in thousands, except per unit amounts) Net income attributable to limited partner interests in USD Partners LP $ 4,635 $ — $ 4,635 Less: Distributable earnings (1) — — — Excess net income $ 4,635 $ — $ 4,635 Weighted average units outstanding (2) 33,759 — 33,759 Distributable earnings per unit (3) $ — Underdistributed earnings per unit (4) 0.14 Net income per limited partner unit (basic and diluted) (5) $ 0.14 (1) There were no distributions payable for the three months ended June 30, 2023. Refer to Note 16. Partners’ Capital for further information. (2) Represents the weighted average units outstanding for the period. (3) Represents the total distributable earnings divided by the weighted average number of units outstanding for the period. (4) Represents the additional amount per unit necessary to distribute the excess net income for the period among our limited partners. (5) Our computation of net income per limited partner unit excludes the effects of 1,445,757 equity-classified phantom unit awards outstanding as they were anti-dilutive for the period presented. . For the Three Months Ended June 30, 2022 Common General Total (in thousands, except per unit amounts) Net income attributable to limited partner interests in USD Partners LP $ 3,805 $ — $ 3,805 Less: Distributable earnings (1) 4,292 — 4,292 Distributions in excess of earnings $ (487) $ — $ (487) Weighted average units outstanding (2) 33,378 — 33,378 Distributable earnings per unit (3) $ 0.13 Overdistributed earnings per unit (4) (0.01) Net income per limited partner unit (basic and diluted) (5) $ 0.12 (1) Represents the distributions paid for the period based upon the quarterly distribution amount of $0.1235 per unit or $0.494 on an annualized basis for the three months ended June 30, 2022. Amounts presented for each class of units include a proportionate amount of the $170 thousand distributed to holders of the Equity classified Phantom Units pursuant to the distribution equivalent rights granted under the Amended LTIP Plan. (2) Represents the weighted average units outstanding for the period. (3) Represents the total distributable earnings divided by the weighted average number of units outstanding for the period. (4) Represents the distributions in excess of earnings divided by the weighted average number of units outstanding. (5) Our computation of net income per limited partner unit excludes the effects of 1,373,347 equity-classified phantom unit awards outstanding as they were anti-dilutive for the period presented. For the Six Months Ended June 30, 2023 Common General Total (in thousands, except per unit amounts) Net income attributable to limited partner interests in USD Partners LP $ 6,610 $ — $ 6,610 Less: Distributable earnings (1) — — — Excess net income $ 6,610 $ — $ 6,610 Weighted average units outstanding (2) 33,663 — 33,663 Distributable earnings per unit (3) $ — Underdistributed earnings per unit (4) 0.20 Net income per limited partner unit (basic and diluted) (5) $ 0.20 (1) There were no distributions paid or payable for the six months ended June 30, 2023. Refer to Note 16. Partners’ Capital for further information. (2) Represents the weighted average units outstanding for the period. (3) Represents the total distributable earnings divided by the weighted average number of units outstanding for the period. (4) Represents the additional amount per unit necessary to distribute the excess net income for the period among our limited partners. (5) Our computation of net income per limited partner unit excludes the effects of 1,445,757 equity-classified phantom unit awards outstanding as they were anti-dilutive for the period presented. For the Six Months Ended June 30, 2022 Common General Total (in thousands, except per unit amounts) Net income (loss) attributable to general and limited partner interests in USD Partners LP (1) $ 12,647 $ (1,369) $ 11,278 Less: Distributable earnings (2) 7,925 3 7,928 Excess net income (distributions) $ 4,722 $ (1,372) $ 3,350 Weighted average units outstanding (3) 30,426 229 30,655 Distributable earnings per unit (4) $ 0.26 Underdistributed earnings per unit (5) 0.16 Net income per limited partner unit (basic and diluted) (6) $ 0.42 (1) Represents net income allocated to each class of units based on the actual ownership of the Partnership during the period. There were no amounts attributed to the general partner for its incentive distribution rights. (2) Represents the per unit distribution paid of $0.1235 per unit for the three months ended March 31, 2022 and June 30, 2022. Amounts presented for each class of units include a proportionate amount of the $337 thousand distributed to holders of the Equity-classified Phantom Units pursuant to the distribution equivalent rights granted under the Amended LTIP 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 additional amount per unit necessary to distribute the excess net income for the period among our limited partners and our general partners according to the distribution formula for available cash as set forth in our partnership agreement. (6) Our computation of net income per limited partner unit excludes the effects of 1,373,347 equity-classified phantom unit awards outstanding as they were anti-dilutive for the period presented. |
REVENUES
REVENUES | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES Disaggregated Revenues We manage our business in two reportable segments: Terminalling services and Fleet services. 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. As such, we have concluded that disaggregating revenue by reporting segments appropriately depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Refer to Note 14. Segment Reporting for our disaggregated revenues by segment. Additionally, the below tables summarize the geographic data for our revenues: Three Months Ended June 30, 2023 U.S. Canada Total (in thousands) Third party $ 1,158 $ 17,206 $ 18,364 Related party $ 1,106 $ 1 $ 1,107 Three Months Ended June 30, 2022 U.S. Canada Total (in thousands) Third party $ 5,971 $ 25,896 $ 31,867 Related party $ 1,874 $ — $ 1,874 Six Months Ended June 30, 2023 U.S. Canada Total (in thousands) Third party $ 3,614 $ 34,679 $ 38,293 Related party $ 2,246 $ 58 $ 2,304 Six Months Ended June 30, 2022 U.S. Canada Total (in thousands) Third party $ 13,307 $ 52,480 $ 65,787 Related party $ 3,740 $ — $ 3,740 Remaining Performance Obligations The transaction price allocated to the remaining performance obligations associated with our Terminal Service Agreements as of June 30, 2023 are as follows for the periods indicated: Six months ending December 31, 2023 2024 2025 2026 2027 Thereafter Total (in thousands) Terminalling Services (1) (2) $ 19,338 $ 26,125 $ 24,976 $ 24,976 $ 21,066 $ 75,488 $ 191,969 (1) A significant portion of our Terminal Services Agreements are denominated in Canadian dollars. We have converted the remaining performance obligations associated with these Canadian dollar-denominated contracts using the year-to-date average exchange rate of 0.7421 U.S. dollars for each Canadian dollar at June 30, 2023. (2) Includes fixed monthly minimum commitment fees per contracts and excludes constrained estimates of variable consideration for rate-escalations associated with an index, such as the consumer price index, as well as any incremental revenue associated with volume activity above the minimum volumes set forth within the contracts. We have applied the practical expedient that allows us to exclude disclosure of performance obligations that are part of a contract that has an expected duration of one year or less. Deferred Revenue Our deferred revenue is a form of a contract liability and consists of amounts collected in advance from customers associated with their terminal and fleet services agreements and deferred revenues associated with make-up rights, which will be recognized as revenue when earned pursuant to the terms of our contractual arrangements. We currently recognize substantially all of the amounts we receive for minimum volume commitments as revenue when collected, since breakage associated with these make-up rights is currently approximately 100% based on our expectations around usage of these options. Accordingly, we had no deferred revenue at June 30, 2023 and $0.4 million deferred revenue at December 31, 2022, for estimated breakage associated with the make-up rights options we granted to our customers. We also have deferred revenue that represents cumulative revenue that has been deferred due to tiered billing provisions. In such arrangements, revenue is recognized using a blended rate based on the billing tiers of the agreement, as the services are consistently provided throughout the duration of the contractual arrangement, which we included in “ Other current liabilities” and “ Other non-current liabilities ” on our consolidated balance sheets. The following table presents the amounts outstanding on our consolidated balance sheets and changes associated with the balance of our deferred revenue for the six months ended June 30, 2023: December 31, 2022 Cash Additions for Customer Prepayments Balance Sheet Reclassification Revenue Recognized June 30, 2023 (in thousands) Deferred revenue (1) $ 3,562 $ 1,746 $ — $ (3,562) $ 1,746 Other current liabilities (2) $ 5,681 $ — $ 392 $ (4,613) $ 1,460 Other non-current liabilities (2) $ 3,943 $ 88 $ (392) $ — $ 3,639 (1) Includes deferred revenue of $0.4 million at December 31, 2022, for estimated breakage associated with the make-up right options we granted our customers as discussed above. We had no deferred revenue at June 30, 2023 associated with make-up right options. (2) Includes cumulative revenue that has been deferred due to tiered billing provisions included in certain of our Canadian dollar-denominated contracts, as discussed above. As such, the change in “Other current liabilities” has been increased by $127 thousand and “Other non-current liabilities” presented has been increased by $88 thousand due to the impact of the change in the end of period exchange rate between June 30, 2023 and December 31, 2022. Deferred Revenue — Fleet Leases Our deferred revenue also includes advance payments from our customer of our Fleet services business, which will be recognized as Fleet leases revenue when earned pursuant to the terms of our contractual arrangements. We have included $0.1 million at December 31, 2022 , in “ Deferred revenue — related party ” on our consolidated balance sheets associated with our customer’s prepayment for our fleet lease agreements. We had no deferred revenue associated with customer prepayments at June 30, 2023. Refer to Note 8. Leases for additional discussion of our lease revenues. |
RESTRICTED CASH
RESTRICTED CASH | 6 Months Ended |
Jun. 30, 2023 | |
Cash and Cash Equivalents [Abstract] | |
RESTRICTED CASH | RESTRICTED CASH We include in restricted cash amounts representing a cash account for which the use of funds is restricted by a facilities connection agreement among us and Gibson Energy Inc., or Gibson, that we entered into during 2014 in connection with the development of our Hardisty Terminal. The collaborative arrangement is further discussed in Note 11. Collaborative Arrangement . In addition, we have an indemnity escrow account of $2.0 million included in our restricted cash amounts associated with the divestiture of our Casper Terminal that is required to be held for one year from the March 31, 2023 closing date of the sale of the terminal. Refer to Note 3. Acquisitions and Dispositions for a further discussion of the Casper Terminal divestiture. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within our consolidated balance sheets to the amounts shown in our consolidated statements of cash flows for the specified periods: June 30, 2023 2022 (in thousands) Cash and cash equivalents $ 10,291 $ 4,333 Restricted cash 3,783 3,947 Total cash, cash equivalents and restricted cash $ 14,074 $ 8,280 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Our property and equipment is comprised of the following asset classifications as of the dates indicated: June 30, 2023 December 31, 2022 Estimated (in thousands) Land $ 2,877 $ 10,110 N/A Trackage and facilities 86,252 108,325 10-30 Pipeline — 12,759 20-30 Equipment 14,600 22,553 3-20 Furniture 65 84 5-10 Total property and equipment 103,794 153,831 Accumulated depreciation (41,126) (47,360) Construction in progress (1) 179 423 Property and equipment, net $ 62,847 $ 106,894 (1) The amounts classified as “Construction in progress” are excluded from amounts being depreciated. These amounts represent property that has not been placed into productive service as of the respective consolidated balance sheet date. Depreciation expense associated with property and equipment totaled $1.7 million and $2.6 million for the three months ended June 30, 2023 and 2022, respectively, and $3.5 million and $5.3 million, for the six months ended June 30, 2023 and 2022. Stroud Terminal During the second quarter of 2023 the board of directors of our general partner approved the sale of the Stroud Terminal and we classified it as held for sale in our consolidated balance sheets. We currently expect that a sale of the Stroud Terminal could occur in late 2023. The Stroud Terminal is included in our Terminalling Services Segment. As a result of classifying our Stroud Terminal as held for sale, we evaluated the terminal’s fair value. We measured the fair value of our Stroud Terminal long-lived assets using an income analysis approach. Under this approach the fair value of the long-lived assets exceeded the carrying value at May 31, 2023, the date of our evaluation. Our estimate of fair value for the Stroud Terminal required us to use significant unobservable inputs representative of Level 3 fair value measurements, including assumptions related to the future performance of our Stroud Terminal. We have not observed any events or circumstances subsequent to our analysis that would suggest the fair value of our Stroud Terminal is below the carrying amount as of June 30, 2023. |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
LEASES | LEASES Lessee We have noncancellable operating leases for railcars, buildings, storage tanks, offices, railroad tracks, and land. June 30, 2023 December 31, 2022 Weighted-average discount rate 6.7 % 4.1 % Weighted average remaining lease term in years 4.44 years 5.07 years Our total lease cost consisted of the following items for the dates indicated: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands) Operating lease cost $ 327 $ 1,390 $ 653 $ 2,905 Short term lease cost 30 130 61 161 Variable lease cost 1 13 7 31 Sublease income (287) (1,281) (570) (2,562) Total $ 71 $ 252 $ 151 $ 535 The maturity analysis below presents the undiscounted cash payments we expect to make each period for property that we lease from others under noncancellable operating leases as of June 30, 2023 (in thousands): 2023 $ 895 2024 115 2025 114 2026 117 2027 121 Thereafter 384 Total lease payments $ 1,746 Less: imputed interest (197) Present value of lease liabilities $ 1,549 Lessor We serve as an intermediary to assist our customers with obtaining railcars. In connection with our leasing of railcars from third parties, we simultaneously enter into lease agreements with our customers for noncancellable terms that are designed to recover our costs associated with leasing the railcars plus a fee for providing this service. In addition to these leases we also have lease income from storage tanks and lease income from our related party terminal services agreement associated with transloading renewable diesel at our West Colton Terminal that commenced in December 2021. Refer to Note 12. Transactions with Related Parties for additional discussion. Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands, except weighted average term) Lease income (1) $ 1,020 $ 2,494 $ 2,298 $ 4,980 Weighted average remaining lease term in years 3.21 (1) Lease income presented above includes lease income from related parties. Refer to Note 12. Transactions with Related Parties for additional discussion of lease income from a related party. In addition, lease income as discussed above totaling $0.7 million and $1.6 million for the three months ended June 30, 2023 and 2022, respectively, and $1.7 million and $3.2 million for the six months ended June 30, 2023 and 2022, respectively, is included in “ Terminalling services ” and “ Terminalling services — related party ” revenues on our consolidated statements of operations. The maturity analysis below presents the undiscounted future minimum lease payments we expect to receive from customers each period for property they lease from us under noncancellable operating leases as of June 30, 2023 (in thousands): 2023 $ 2,262 2024 2,947 2025 2,936 2026 2,687 Total $ 10,832 |
LEASES | LEASES Lessee We have noncancellable operating leases for railcars, buildings, storage tanks, offices, railroad tracks, and land. June 30, 2023 December 31, 2022 Weighted-average discount rate 6.7 % 4.1 % Weighted average remaining lease term in years 4.44 years 5.07 years Our total lease cost consisted of the following items for the dates indicated: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands) Operating lease cost $ 327 $ 1,390 $ 653 $ 2,905 Short term lease cost 30 130 61 161 Variable lease cost 1 13 7 31 Sublease income (287) (1,281) (570) (2,562) Total $ 71 $ 252 $ 151 $ 535 The maturity analysis below presents the undiscounted cash payments we expect to make each period for property that we lease from others under noncancellable operating leases as of June 30, 2023 (in thousands): 2023 $ 895 2024 115 2025 114 2026 117 2027 121 Thereafter 384 Total lease payments $ 1,746 Less: imputed interest (197) Present value of lease liabilities $ 1,549 Lessor We serve as an intermediary to assist our customers with obtaining railcars. In connection with our leasing of railcars from third parties, we simultaneously enter into lease agreements with our customers for noncancellable terms that are designed to recover our costs associated with leasing the railcars plus a fee for providing this service. In addition to these leases we also have lease income from storage tanks and lease income from our related party terminal services agreement associated with transloading renewable diesel at our West Colton Terminal that commenced in December 2021. Refer to Note 12. Transactions with Related Parties for additional discussion. Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands, except weighted average term) Lease income (1) $ 1,020 $ 2,494 $ 2,298 $ 4,980 Weighted average remaining lease term in years 3.21 (1) Lease income presented above includes lease income from related parties. Refer to Note 12. Transactions with Related Parties for additional discussion of lease income from a related party. In addition, lease income as discussed above totaling $0.7 million and $1.6 million for the three months ended June 30, 2023 and 2022, respectively, and $1.7 million and $3.2 million for the six months ended June 30, 2023 and 2022, respectively, is included in “ Terminalling services ” and “ Terminalling services — related party ” revenues on our consolidated statements of operations. The maturity analysis below presents the undiscounted future minimum lease payments we expect to receive from customers each period for property they lease from us under noncancellable operating leases as of June 30, 2023 (in thousands): 2023 $ 2,262 2024 2,947 2025 2,936 2026 2,687 Total $ 10,832 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS The composition, gross carrying amount and accumulated amortization of our identifiable intangible assets are as follows as of the dates indicated: June 30, 2023 December 31, 2022 (in thousands) Carrying amount: Customer service agreements $ — $ 3,832 Other 56 — Total carrying amount 56 3,832 Accumulated amortization: Customer service agreements — (306) Other (1) — Total accumulated amortization (1) (306) Total intangible assets, net $ 55 $ 3,526 Our current intangible assets at June 30, 2023, originated as internally developed software for internal use. Refer to Note 2. Summary of Significant Accounting Policies — Internal-use Software for further details. Our identifiable intangible assets through December 31, 2022, originated from the acquisition of the Casper Terminal and were therefore removed from our consolidated balance sheet effective with the divestiture of our Casper Terminal that occurred in March 2023. Refer to Note 3. Acquisitions and Dispositions — Casper Terminal Divestiture for further details. Amortization expense associated with intangible assets totaled $0.1 million for the six months ended June 30, 2023 and $3.2 million and $6.3 million for the three and six months ended June 30, 2022, respectively. We had no significant amortization expense for the three months ended June 30, 2023 . |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Credit Agreement In November 2018, we amended and restated our revolving senior secured credit agreement, which we originally established in October 2014. We refer to the amended and restated senior secured credit agreement executed in November 2018, and as amended, as the Credit Agreement and the original senior secured credit agreement as the Previous Credit Agreement. Our Credit Agreement amended and restated in its entirety our Previous Credit Agreement. In October 2021, we entered into an amendment to our Credit Agreement, with a syndicate of lenders. The amendment extended the maturity date of the agreement by one year. The aggregate borrowing capacity of the facility is $275 million and reflects the resignation of Citibank, N.A. as administrative agent and swing line lender under the facility and the appointment of Bank of Montreal as the successor administrative agent and swing line lender under the facility. In addition, in January 2023, we executed an additional amendment to our Credit Agreement, or the Amendment. Among other things, the Amendment provides us with relief from compliance with our Credit Agreement’s maximum Consolidated Net Leverage Ratio and minimum Consolidated Interest Coverage Ratio. As amended, the maximum Consolidated Leverage Ratio was increased from 4.5x to 5.5x for the first and second quarters of 2023 and 5.25x for the third quarter of 2023, and the minimum Consolidated Interest Coverage Ratio was reduced from 2.5x to 2.25x for the second quarter of 2023 and 2.0x for the third quarter of 2023. Beginning January 31, 2023 and continuing through maturity, our ability to make distributions, other restricted payments and investments will be more limited than prior to closing the Amendment if our Consolidated Net Leverage Ratio, pro forma for such distribution, other restricted payment or investment, exceeds 4.5x, or our pro forma liquidity is less than $20 million. The Amendment also increased the borrowing spreads under our Credit Agreement to be more consistent with current market rates and replaces LIBOR-based borrowing options with Term SOFR-based borrowing options. In connection with the Amendment, we incurred additional deferred financing costs of $203 thousand. The deferred financing costs from the Credit Agreement along with the remaining deferred financing costs from the Credit Agreement prior to the Amendment will be amortized over the remaining term of the Credit Agreement using the straight line method, which approximates the effective interest method. Our Credit Agreement matures on November 2, 2023. Our Credit Agreement provides us with the ability to request an additional one-year maturity date extension, subject to the satisfaction of certain conditions including consent of the lenders, and allows us the option to increase the maximum amount of credit available up to a total facility size of $390 million, subject to receiving increased commitments from lenders and satisfaction of certain conditions. Our Credit Agreement contains customary representations, warranties, covenants and events of default for facilities of this type. Our Credit Agreement and any issuances of letters of credit are available for working capital, capital expenditures, general partnership purposes and continue the indebtedness outstanding under the Previous Credit Agreement. The Credit Agreement includes an aggregate $20 million sublimit for standby letters of credit and a $20 million sublimit for swingline loans. Obligations under the Credit Agreement are guaranteed by our restricted subsidiaries (as such term is defined therein) and are secured by a first priority lien on our assets and those of our restricted subsidiaries, other than certain excluded assets. Our long-term debt balances included the following components as of the specified dates: June 30, 2023 December 31, 2022 (in thousands) Credit Agreement $ 195,900 $ 215,000 Less: Deferred financing costs, net (453) (908) Less: Long-term debt, current portion (195,447) (214,092) Total long-term debt, net $ — $ — We determined the capacity available to us under the terms of our Credit Agreement was as follows as of the specified dates: June 30, 2023 December 31, 2022 (in millions) Aggregate borrowing capacity under Credit Agreement $ 275.0 $ 275.0 Less: Amounts outstanding under the Credit Agreement 195.9 215.0 Available under the Credit Agreement based on capacity $ 79.1 $ 60.0 Available under the Credit Agreement based on covenants (1) $ 1.7 $ 53.0 (1) Pursuant to the terms of our amended Credit Agreement, as discussed above, our borrowing capacity is currently limited to 5.5 times (5.0 times at December 31, 2022) our trailing 12-month consolidated EBITDA, which equates to $1.7 million and $53.0 million of borrowing capacity available based on our covenants at June 30, 2023 and December 31, 2022, respectively. The weighted average interest rate on our outstanding indebtedness was 8.25% and 6.92% at June 30, 2023 and December 31, 2022, respectively, without consideration to the effect of our derivative contracts. In addition to the interest we incur on our outstanding indebtedness, we paid commitment fees of 0.5% on unused commitments at June 30, 2023, which rate will vary based on our consolidated net leverage ratio, as defined in our Credit Agreement. At June 30, 2023, we were in compliance with the covenants set forth in our Credit Agreement. Interest expense associated with our outstanding indebtedness was as follows for the specified periods: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands) Interest expense on the Credit Agreement $ 4,139 $ 1,825 $ 8,262 $ 2,971 Amortization of deferred financing costs 340 272 658 628 Total interest expense $ 4,479 $ 2,097 $ 8,920 $ 3,599 Subsequent to June 30, 2023, we amended the terms of our Credit Agreement. Refer to Note 19. Subsequent Event s — Credit Agreement Amendment for more information. Supplier Financing Agreement We have agreements with a third party that allows a provider of some of our received services to finance payment obligations from us with a designated third-party financial institution associated with insurance for certain of our terminals. The extended payment terms that we have with this supplier for these arrangements is nine months from the execution of the insurance contract. We are not required to provide collateral to the financial institution. Our outstanding payment obligation under these arrangements was $361 thousand and $19 thousand at June 30, 2023 and December 31, 2022, respectively, recorded in “ Other current liabilities ” on our consolidated balance sheets. |
COLLABORATIVE ARRANGEMENT
COLLABORATIVE ARRANGEMENT | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
COLLABORATIVE ARRANGEMENT | COLLABORATIVE ARRANGEMENT We entered into a facilities connection agreement in 2014 with 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. Pursuant to our arrangement with Gibson, we incurred pipeline fees of $5.8 million and $8.4 million, for the three months ended June 30, 2023 and 2022, respectively, and $11.3 million and $16.9 million for the six months ended June 30, 2023 and 2022, respectively, which are presented as “ Pipeline fees ” in our consolidated statements of operations. |
TRANSACTIONS WITH RELATED PARTI
TRANSACTIONS WITH RELATED PARTIES | 6 Months Ended |
Jun. 30, 2023 | |
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 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 at June 30, 2023, owns 17,308,226 of our common units representing a 51.3% limited partner interest in us. As of June 30, 2023, a value of up to $10.0 million of these common units were subject to a negative pledge supporting USDG’s revolving line of credit for working capital. 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, pursuant to our partnership agreement, is responsible for our overall governance and operations. However, our general partner has no obligation to, does not intend to and has not implied that it would provide financial support to or fund cash flow deficits of the Partnership. USD Marketing LLC, or USDM, is a wholly-owned subsidiary of USDG organized to promote contracting for services provided by our terminals and to facilitate the marketing of customer products. USD Clean Fuels LLC, or USDCF, is a subsidiary of USD organized for the purpose of providing production and logistics solutions to the growing market for clean energy transportation fuels. Omnibus Agreement We are party to an omnibus agreement with USD, USDG and certain of their subsidiaries, or the Omnibus Agreement, 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 the amounts we pay to reimburse our general partner and its affiliates for certain costs and expenses incurred on our behalf for managing 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, 2023 and 2022 was $1.8 million and $2.6 million, respectively, and for the six months ended June 30, 2023 and 2022 was $4.0 million and $4.6 million, respectively, which amounts are included in “ Selling, general and administrative — related part y” in our consolidated statements of operations. We had a payable balance of $0.3 million and $0.8 million with respect to these costs at June 30, 2023 and December 31, 2022, respectively, included in “ Accounts payable and accrued expenses — related party ” in our consolidated balance sheets. USD Services Agreement Prior to our acquisition of the Hardisty South entities, USD and the Hardisty South entities entered into a services agreement for the provision of services related to the management and operation of transloading assets. Services provided consisted of financial and administrative, information technology, legal, management, human resources, and tax, among other services. The Hardisty South entities incurred $3.2 million pursuant to the agreement for the six months ended June 30, 2022 included in “ Selling, general, and administrative — related party” in our consolidated statements of operations. Upon our acquisition of the Hardisty South entities effective April 1, 2022, this services agreement was canceled and a similar agreement was established with us. As such, there was no associated expense for the three and six months ended June 30, 2023 related to the agreement included in “ Selling, general, and administrative — related party” in our consolidated statements of operations. Marketing Services Agreement — Stroud Terminal In connection with our purchase of the Stroud Terminal, we entered into a Marketing Services Agreement with USDM, or the Stroud Terminal MSA, in May 2017, whereby we granted USDM the right to market the capacity at the Stroud Terminal in excess of the original capacity of our initial customer in exchange for a nominal per barrel fee. USDM is obligated to fund any related capital costs associated with increasing the throughput or efficiency of the terminal to handle additional throughput. Upon expiration of our contract with the initial Stroud customer in June 2020, the same marketing rights now apply to all throughput at the Stroud Terminal in excess of the throughput necessary for the Stroud Terminal to generate Adjusted EBITDA that is at least equal to the average monthly Adjusted EBITDA derived from the initial Stroud customer during the 12 months prior to expiration. We also granted USDG the right to develop other projects at the Stroud Terminal in exchange for the payment to us of market-based compensation for the use of our property for such development projects. Any such development projects would be wholly-owned by USDG and would be subject to our existing right of first offer, or ROFO, with respect to midstream projects developed by USDG. There were no payments made under the Stroud Terminal MSA during the periods presented in this Report. Marketing Services Agreement — West Colton Terminal In June 2021, we entered into a Terminal Services Agreement with USDCF that is supported by a minimum throughput commitment to USDCF from an investment-grade rated, refining customer as well as a performance guaranty from USD. The Terminal Services Agreement provides for the inbound shipment of renewable diesel on rail at our West Colton Terminal and the outbound shipment of the product on tank trucks to local consumers. The Terminal Services Agreement has an initial term of five years and commenced on December 1, 2021. We have modified our existing West Colton Terminal so that it now has the capability to transload renewable diesel in addition to the ethanol that it has been transloading. In exchange for the Terminal Services Agreement at our West Colton Terminal with USDCF discussed above, we also entered into a Marketing Services Agreement in June 2021, or the West Colton MSA, with USDCF pursuant to which we agreed to grant USDCF marketing and development rights pertaining to future renewable diesel opportunities associated with the West Colton Terminal in excess of the initial renewable diesel Terminal Services Agreement simultaneously executed in June 2021 between us and USDCF. These rights entitle USDCF to market all additional renewable diesel opportunities at the West Colton Terminal during the initial term of the USDCF agreement, and following the initial term of that agreement, all renewable diesel opportunities at the West Colton Terminal in excess of the throughput necessary to generate Adjusted EBITDA for the West Colton Terminal that is at least equal to the average monthly Adjusted EBITDA derived from the initial USDCF agreement during the 12 months prior to expiration of that agreement’s initial five-year term. Pursuant to the West Colton MSA, USDCF will fund any related capital costs associated with increasing the throughput or efficiency of the terminal to handle additional renewable diesel opportunities. In addition, we granted USDCF the right to develop other renewable diesel projects at the West Colton Terminal in exchange for a per barrel fee covering our associated operating costs. Any such development projects would be wholly-owned by USD and would be subject to the terms and conditions of the ROFO with respect to midstream infrastructure developed by USD. There have been no payments made under the West Colton MSA during the periods presented in this Report. Related Party Revenue and Deferred Revenue As previously discussed, we entered into a Terminal Services Agreement at our West Colton Terminal with USDCF that became effective in December 2021. We include amounts received pursuant to the arrangement as revenue in the table below under “ Terminalling services — related party ” in our consolidated statements of operations. We also have agreements to provide fleet services for USDM, which includes reimbursement to us for certain out-of-pocket expenses we incur. We received revenue from USDM for the lease of 200 railcars pursuant to the terms of an existing agreement with us, which is included in the table below under “ Fleet leases — related party ” and “ Fleet services — related party ” and in our consolidated statements of operations. Our related party revenues from USD and affiliates are presented below in the following table for the indicated periods: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands) Terminalling services — related party $ 732 $ 662 $ 1,446 $ 1,317 Fleet leases — related party 287 913 570 1,825 Fleet services — related party 86 299 171 598 Freight and other reimbursables — related party 2 — 117 — $ 1,107 $ 1,874 $ 2,304 $ 3,740 We had the following amounts outstanding with USD and affiliates on our consolidated balance sheets as presented below in the following table for the indicated periods (1) : June 30, 2023 December 31, 2022 (in thousands) Accounts receivable — related party $ 318 $ 409 Accounts payable and accrued expenses — related party (1) $ 342 $ 382 Other current and non-current liabilities — related party (2) $ 188 $ 11 Deferred revenue — related party (3) $ — $ 128 (1) The table presented above does not include amounts payable to related parties associated with the Omnibus Agreement that are recorded to “ Accounts payable and accrued expenses — related party ” as discussed above. (2) Represents contract liabilities associated with lease agreements with USDM and USDCF. (3) Represents deferred revenues associated with our fleet services agreement with USD and affiliates for amounts we have collected from them for their prepaid leases. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIESFrom 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. |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING We manage our business 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 and unload various grades of crude oil into and from railcars, as well as fixed fees per gallon to transload ethanol and renewable diesel from railcars, including related logistics services. We also facilitate rail-to-pipeline shipments of crude oil. Our Terminalling services segment also charges minimum monthly fees to store crude oil in tanks that are leased to our customers. The Fleet services segment provides our customer with railcars and fleet services related to the transportation of liquid hydrocarbons under take-or-pay contracts. Corporate activities are not considered a reportable segment, but are included to present shared services and financing activities which are not allocated to our established reporting segments. Our segments offer different services and are managed accordingly. Our 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. Segment Adjusted EBITDA is a measure calculated in accordance with GAAP. We define Segment Adjusted EBITDA as “ Net income (loss) ” of each segment adjusted for depreciation and amortization, interest, income taxes, changes in contract assets and liabilities, deferred revenues, foreign currency transaction gains and losses and other items which do not affect the underlying cash flows produced by our businesses. As such, we have concluded that disaggregating revenue by reporting segments appropriately depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Three Months Ended June 30, 2023 Terminalling Fleet Corporate Total (in thousands) Revenues Terminalling services $ 18,364 $ — $ — $ 18,364 Terminalling services — related party 732 — — 732 Fleet leases — related party — 287 — 287 Fleet services — related party — 86 — 86 Freight and other reimbursables — — — — Freight and other reimbursables — related party — 2 — 2 Total revenues 19,096 375 — 19,471 Operating costs Subcontracted rail services 2,323 — — 2,323 Pipeline fees 5,834 — — 5,834 Freight and other reimbursables — 2 — 2 Operating and maintenance 717 298 — 1,015 Selling, general and administrative 746 20 3,387 4,153 Gain on sale of business — — — — Depreciation and amortization 1,723 — — 1,723 Total operating costs 11,343 320 3,387 15,050 Operating income 7,753 55 (3,387) 4,421 Interest expense 4 — 4,475 4,479 Gain associated with derivative instruments — — (4,755) (4,755) Foreign currency transaction loss 20 4 24 48 Other income, net (58) — (24) (82) Provision for (benefit from) income taxes 124 (28) — 96 Net income (loss) $ 7,663 $ 79 $ (3,107) $ 4,635 Three Months Ended June 30, 2022 Terminalling Fleet Corporate Total (in thousands) Revenues Terminalling services $ 31,704 $ — $ — $ 31,704 Terminalling services — related party 662 — — 662 Fleet leases — related party — 913 — 913 Fleet services — related party — 299 — 299 Freight and other reimbursables 163 — — 163 Freight and other reimbursables — related party — — — — Total revenues 32,529 1,212 — 33,741 Operating costs Subcontracted rail services 3,604 — — 3,604 Pipeline fees 8,389 — — 8,389 Freight and other reimbursables 163 — — 163 Operating and maintenance 2,245 972 — 3,217 Selling, general and administrative 1,650 33 5,712 7,395 Gain on sale of business — — — — Depreciation and amortization 5,765 — — 5,765 Total operating costs 21,816 1,005 5,712 28,533 Operating income (loss) 10,713 207 (5,712) 5,208 Interest expense 1 — 2,096 2,097 Gain associated with derivative instruments — — (812) (812) Foreign currency transaction loss 41 1 101 143 Other income, net (1) (2) (1) (4) Benefit from income taxes (5) (16) — (21) Net income (loss) $ 10,677 $ 224 $ (7,096) $ 3,805 Six Months Ended June 30, 2023 Terminalling Fleet Corporate Total (in thousands) Revenues Terminalling services $ 38,103 $ — $ — $ 38,103 Terminalling services — related party 1,446 — — 1,446 Fleet leases — related party — 570 — 570 Fleet services — related party — 171 — 171 Freight and other reimbursables 190 — — 190 Freight and other reimbursables — related party 115 2 — 117 Total revenues 39,854 743 — 40,597 Operating costs Subcontracted rail services 5,608 — — 5,608 Pipeline fees 11,307 — — 11,307 Freight and other reimbursables 305 2 — 307 Operating and maintenance 2,183 593 — 2,776 Selling, general and administrative 2,136 42 8,559 10,737 Gain on sale of business — — (6,202) (6,202) Depreciation and amortization 3,629 — — 3,629 Total operating costs 25,168 637 2,357 28,162 Operating income (loss) 14,686 106 (2,357) 12,435 Interest expense 4 — 8,916 8,920 Gain associated with derivative instruments — — (2,905) (2,905) Foreign currency transaction loss 43 4 55 102 Other income, net (90) — (26) (116) Benefit from income taxes (154) (22) — (176) Net income (loss) $ 14,883 $ 124 $ (8,397) $ 6,610 Six Months Ended June 30, 2022 Terminalling Fleet Corporate Total (in thousands) Revenues Terminalling services $ 65,527 $ — $ — $ 65,527 Terminalling services — related party 1,317 — — 1,317 Fleet leases — related party — 1,825 — 1,825 Fleet services — related party — 598 — 598 Freight and other reimbursables 260 — — 260 Freight and other reimbursables — related party — — — — Total revenues 67,104 2,423 — 69,527 Operating costs Subcontracted rail services 7,595 — — 7,595 Pipeline fees 16,890 — — 16,890 Freight and other reimbursables 260 — — 260 Operating and maintenance 4,869 1,965 — 6,834 Selling, general and administrative 6,437 90 9,614 16,141 Gain on sale of business — — — — Depreciation and amortization 11,604 — — 11,604 Total operating costs 47,655 2,055 9,614 59,324 Operating income (loss) 19,449 368 (9,614) 10,203 Interest expense 118 — 3,481 3,599 Gain associated with derivative instruments — — (6,896) (6,896) Foreign currency transaction loss 1,739 1 50 1,790 Other income, net (24) (2) (1) (27) Provision for income taxes 411 48 — 459 Net income (loss) $ 17,205 $ 321 $ (6,248) $ 11,278 Segment Adjusted EBITDA The following tables present the computation of Segment Adjusted EBITDA, which is a measure determined in accordance with GAAP, for each of our segments for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, Terminalling Services Segment 2023 2022 2023 2022 (in thousands) Net income $ 7,663 $ 10,677 $ 14,883 $ 17,205 Interest expense (income), net (1) (52) (1) (83) 115 Depreciation and amortization 1,723 5,765 3,629 11,604 Provision for (benefit from) income taxes 124 (5) (154) 411 Foreign currency transaction loss (2) 20 41 43 1,739 Loss associated with disposal of assets — 3 — 3 Non-cash deferred amounts (3) (1,651) (329) (3,302) (1,886) Segment Adjusted EBITDA attributable to Hardisty South entities prior to acquisition (4) — — — (258) Segment Adjusted EBITDA $ 7,827 $ 16,151 $ 15,016 $ 28,933 (1) Represents interest expense associated with the construction loan agreement that existed prior to our acquisition of the Hardisty South Terminal entities and interest income associated with our Terminalling Services segment that is included in “ Other income, net ” in our consolidated statements of operations. (2) Represents foreign exchange transaction amounts associated with activities between our U.S. and Canadian subsidiaries. (3) Represents the change in non-cash contract assets and liabilities associated with revenue recognized at blended rates based on tiered rate structures in certain of our customer contracts and deferred revenue associated with deficiency credits that are expected to be used in the future prior to their expiration. Amounts presented are net of the corresponding prepaid Gibson pipeline fee that will be recognized as expense concurrently with the recognition of revenue. (4) Segment adjusted EBITDA attributable to the Hardisty South entities for the three months ended March 31, 2022 was excluded from the Terminalling Services Segment Adjusted EBITDA, as these amounts were generated by the Hardisty South entities prior to the Partnership’s acquisition. Three Months Ended June 30, Six Months Ended June 30, Fleet Services Segment 2023 2022 2023 2022 (in thousands) Net income $ 79 $ 224 $ 124 $ 321 Interest income (1) — (2) — (2) Foreign currency transaction loss (2) 4 1 4 1 Provision for (benefit from) income taxes $ (28) $ (16) $ (22) $ 48 Segment Adjusted EBITDA $ 55 $ 207 $ 106 $ 368 (1) Represents interest income associated with our Fleet Services segment that is included in “ Other income, net ” in our consolidated statements of operations. (2) Represents foreign exchange transaction amounts associated with activities between our U.S. and Canadian subsidiaries. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTSOur net income, or loss, and cash flows are subject to fluctuations resulting from changes in interest rates on our variable rate debt obligations and from changes in foreign currency exchange rates, particularly with respect to the U.S. dollar and the Canadian dollar. We use interest rate derivative instruments, specifically swaps, on our variable rate debt and to manage the risks associated with market fluctuations in interest rates to reduce volatility in our cash flows. We have not historically designated, nor do we expect to designate, our derivative financial instruments as hedges of the underlying risk exposure. All of our financial instruments are employed in connection with an underlying asset, liability and/or forecasted transaction and are not entered into for speculative purposes. Interest Rate Derivatives In October 2022, we terminated and settled our existing interest rate swap and simultaneously entered into a new interest rate swap. The new interest rate swap is a five-year contract with a $175.0 million notional value that fixes SOFR to 3.956% for the notional value of the swap agreement instead of the variable rate that we pay under our Credit Agreement. The swap settles monthly through the termination date in October 2027. Derivative Positions We record all of our derivative financial instruments at their fair values in the line items specified below within our consolidated balance sheets, the amounts of which were as follows at the dates indicated: June 30, 2023 December 31, 2022 (in thousands) Other current assets $ 2,383 $ 1,448 Other non-current liabilities (2,229) (3,587) $ 154 $ (2,139) We have not designated our derivative financial instruments as hedges of our interest rate exposure. As a result, changes in the fair value of these derivatives are recorded as “G ain associated with derivative instruments ” in our consolidated statements of operations. The gains or losses associated with changes in the fair value of our 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, 2023 2022 2023 2022 (in thousands) Gain associated with derivative instruments $ (4,755) $ (812) $ (2,905) $ (6,896) 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 table presents summarized information about the fair values of our outstanding interest rate contracts for the periods indicated: June 30, 2023 December 31, 2022 Notional Interest Rate Parameters Fair Value Fair Value (in thousands) Swap Agreements Swap maturing October 2027 $ 175,000,000 3.956 % $ 154 $ (2,139) |
PARTNERS' CAPITAL
PARTNERS' CAPITAL | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
PARTNERS' CAPITAL | PARTNERS’ CAPITAL Our common units represent limited partner interests in us. The holders of common units are entitled to participate in partnership distributions and to exercise the rights and privileges available to limited partners under our partnership agreement. Pursuant to the terms of the First Amendment to the USD Partners LP Amended and Restated 2014 Long-Term Incentive Plan, which we refer to as the Amended LTIP Plan, 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 566,856 vested during the first six months in 2023, of which 377,420 were converted into our common units after 189,436 Phantom Units were withheld from participants for the payment of applicable employment-related withholding taxes. 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 17. Unit Based Compensation . |
UNIT BASED COMPENSATION
UNIT BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
UNIT BASED COMPENSATION | UNIT BASED COMPENSATION Long-term Incentive Plan In 2023 and 2022, the board of directors of our general partner, acting in its capacity as our general partner, approved the grant of 714,725 and 625,732 Phantom Units, respectively, to directors and employees of our general partner and its affiliates under our Amended LTIP Plan. At June 30, 2023, we had 3,192,352 Phantom Units remaining available for issuance. The Phantom Units are subject to all of the terms and conditions of the Amended LTIP Plan and the Phantom Unit award agreements, which are collectively referred to as the Award Agreements. Award amounts for each of the grants are generally determined by reference to a specified dollar amount based on 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 preceding the grant date, as determined by the board of directors of our general partner and 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. 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 The following tables present the award activity for our Equity-classified Phantom Units: Director and Independent Consultant Phantom Units Employee Phantom Units Weighted-Average Grant Date Fair Value Per Phantom Unit Phantom Unit awards at December 31, 2022 39,408 1,328,964 $ 6.91 Granted 39,408 616,758 $ 3.54 Vested (39,408) (527,448) $ 7.85 Forfeited — (11,925) $ 5.60 Phantom Unit awards at June 30, 2023 39,408 1,406,349 $ 5.02 Director and Independent Consultant Phantom Units Employee Phantom Units Weighted-Average Grant Date Fair Value Per Phantom Unit Phantom Unit awards at December 31, 2021 26,272 1,317,493 $ 8.21 Granted 39,408 536,729 $ 5.85 Vested (26,272) (519,342) $ 9.01 Forfeited — (941) $ 5.37 Phantom Unit awards at June 30, 2022 39,408 1,333,939 $ 6.91 The following tables present the award activity for our Liability-classified Phantom Units: Director and Independent Consultant Phantom Units Employee Phantom Units Weighted-Average Grant Date Fair Value Per Phantom Unit Phantom Unit awards at December 31, 2022 13,136 56,847 $ 6.27 Granted 13,136 45,423 $ 3.54 Vested (13,136) (3,022) $ 5.67 Phantom Unit awards at June 30, 2023 13,136 99,248 $ 4.93 Director and Independent Consultant Phantom Units Employee Phantom Units Weighted-Average Grant Date Fair Value Per Phantom Unit Phantom Unit awards at December 31, 2021 13,136 63,730 $ 7.26 Granted 13,136 36,459 $ 5.85 Vested (13,136) — $ 4.82 Phantom Unit awards at June 30, 2022 13,136 100,189 $ 6.92 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 operations and recognizing a liability in “ Other current liabilities ” in our consolidated balance sheets. With respect to the Phantom Units granted to consultants, independent directors and 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 operations, with an offset to common units within the Partners’ Capital section of our consolidated balance sheet. We recognized $0.9 million and $1.3 million, respectively, for the three months ended June 30, 2023 and 2022 and for the six months ended June 30, 2023 and 2022, we recognized $1.9 million and $2.5 million of compensation expense associated with outstanding Phantom Units. As of June 30, 2023, we have unrecognized compensation expense associated with our outstanding Phantom Units totaling $6.1 million, which we expect to recognize over a weighted average period of 2.47 years. We have elected to account for actual forfeitures as they occur rather than using an estimated forfeiture rate to determine the number of awards we expect to vest. We made payments to holders of the Phantom Units pursuant to the associated DERs we granted to them under the Award Agreements as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands) Equity-classified Phantom Units (1) $ — $ 167 $ 169 $ 330 Liability-classified Phantom Units — 14 9 23 Total $ — $ 181 $ 178 $ 353 (1) We reclassified $7 thousand and $8 thousand to unit based compensation expense for DERs paid in relation to Phantom Units that have been forfeited for the three and six months ended June 30, 2023, respectively. We had no significant amounts reclassified for the three and six months ended June 30, 2022, respectively, for forfeitures. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 2022 (in thousands) Cash paid for income taxes, net (1) $ 1,196 $ 680 Cash paid for interest $ 8,406 $ 2,360 Cash paid for operating leases $ 587 $ 3,576 (1) Includes the net effect of tax refunds of $11 thousand received in the second quarter of 2023 associated with prior period Canadian taxes and $84 thousand received in the second quarter of 2022 associated with carrying back U.S. net operating losses incurred during 2020 and prior periods allowed for by the provisions of the CARES Act. For the six months ended June 30, 2023 and 2022, we had non-cash investing activities for capital expenditures for property and equipment that were financed through “A ccounts payable and accrued expenses ” and “ Accounts Payable and accrued expenses — related party ” and an accrued reimbursement associated with our collaborative arrangement included in “ Accounts receivable, net ” as presented in the table below for the periods indicated: Six months ended June 30, 2023 2022 (in thousands) Property and equipment financed through accounts payable and accrued expenses $ (302) $ (1,941) Accrued reimbursement of property and equipment $ (12) $ — We recorded $0.8 million and $0.7 million as of June 30, 2023 and 2022, respectively, for new, extended, canceled or declassified right-of-use lease assets and associated liabilities. See Note 8. Leases for further discussion. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Credit Agreement Amendment On August 8, 2023 we entered into an amendment, or the Amendment, to our Credit Agreement, with the lenders party thereto and Bank of Montreal, as administrative agent, or the Administrative Agent. Pursuant to the Amendment, subject to certain terms and conditions, the lenders have agreed to forbear through and including October 10, 2023, from exercising any rights or remedies arising from certain defaults or events of default asserted by the Administrative Agent, which we disputed, or certain prospective defaults or events of default under the Credit Agreement and other loan documents arising from, among other things, any failure to disclose certain events that give or may give rise to a Material Adverse Effect. Upon any occurrence of events of default under the Credit Agreement other than those that are the subject of the Amendment or the failure by the Borrowers to perform under the terms of the Amendment, the forbearance under the Amendment may be terminated earlier than October 10, 2023. On October 10, 2023, or upon the earlier termination of the forbearance under the Amendment, the Borrowers will be deemed to have waived any defenses to the defaults or events of default asserted by the Administrative Agent. Pursuant to the Amendment, among other things, we agreed that we will not make any additional requests for new borrowings or letters of credit, or convert outstanding loans from one type to another, in each case under the Credit Agreement. In addition, among other things, the Amendment requires us to provide additional financial and operational reporting to the Administrative Agent and the lenders, and further restricts the ability for us, without the consent of the Administrative Agent and lenders holding at least a majority of outstanding loans under the Credit Agreement, to incur additional indebtedness, to make additional investments or restricted payments, to sell additional assets or to incur growth capital expenditures. In addition, unless otherwise agreed by the Administrative Agent and lenders holding at least a majority of outstanding loans under the Credit Agreement, we are required to apply 100% of the net cash proceeds from any asset sales to repay borrowings outstanding under the Credit Agreement. Continued Listing Standard Notice from New York Stock Exchange |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [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 of America, 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. |
Going Concern | Going Concern We evaluate at each annual and interim period whether there are conditions or events, considered in the aggregate, that raise substantial doubt about our ability to continue as a going concern within one year after the date that the consolidated financial statements are issued. Our evaluation is based on relevant conditions and events that are known and reasonably knowable at the date that the consolidated financial statements are issued. The maturity date of our Credit Agreement (as defined below) is November 2, 2023. As a result of the maturity date being within 12 months after the date that these financial statements were issued, the amounts due under our Credit Agreement have been included in our going concern assessment. Our ability to continue as a going concern is dependent on the refinancing or the extension of the maturity date of our Credit Agreement. If we are unable to refinance or extend the maturity date of our Credit Agreement, we do not currently have sufficient cash on hand or available liquidity to repay the maturing credit facility debt as it becomes due, nor do we expect cash flow from our current operations to provide sufficient funds for such repayment. In addition, there is uncertainty in our ability to remain in compliance with the covenants contained in our amended Credit Agreement for a period of 12 months after the date these financial statements were issued. Although we continue to focus on renewing, extending or replacing expired or expiring customer agreements at the Hardisty and Stroud Terminals, based on our current expectations regarding timing of any renewals, extensions or replacement of such agreements and the related pricing environment, we currently do not expect that we will be able to remain in compliance with the total leverage ratio and interest coverage covenants in the Credit Agreement for the third quarter of 2023. If we fail to comply with such covenants in the Credit Agreement, we would be in default under the terms of the Credit Agreement, which would entitle our lenders to declare all outstanding indebtedness thereunder to be immediately due and payable. We are currently not projected to have sufficient cash on hand or available liquidity to repay the Credit Agreement should the lenders not agree to a forbearance or provide a further waiver or amendment and declare all outstanding indebtedness thereunder to be immediately due and payable. In August 2023, we entered into an amendment to our Credit Agreement, pursuant to which, among other things, the lenders have agreed to forbear through and including October 10, 2023, from exercising any rights or remedies arising from certain defaults or events of default asserted by the Administrative Agent, which we disputed, or certain prospective defaults or events of default under the Credit Agreement and other loan documents arising from, among other things, any failures to disclose certain events that give or may give rise to a Material Adverse Effect, as defined in the Credit Agreement. Refer to Note 19. Subsequent Events — Credit Agreement Amendment for more information. The conditions described above raise substantial doubt about our ability to continue as a going concern for the next 12 months. We are currently in discussions with our lenders and other potential capital providers and pursuing plans to refinance or replace our Credit Agreement or extend and amend the current obligations under the Credit Agreement; however, we cannot make assurances that we will be successful in these efforts, or that any refinancing, extension or replacement would be on terms favorable to us. Moreover, our ability to refinance our outstanding indebtedness under, or extend the maturity date of, our Credit Agreement is expected to be negatively impacted to the extent we are unable to renew, extend or replace our customer agreements at the Hardisty and Stroud Terminals or experience further prolonged delays in doing so. Due to the substantial doubt about our ability to continue as a going concern discussed above, as of June 30, 2023, we have recorded a valuation allowance against our deferred tax asset that is associated with our Canadian entities. These consolidated financial statements do not include any other adjustments that might result from the outcome of this uncertainty, nor do they include adjustments to reflect the possible future effects of the recoverability and classification of recorded asset amounts and classifications of liabilities that might be necessary should we be unable to continue as a going concern. |
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. |
Foreign Currency Translation | Foreign Currency Translation We conduct a substantial portion of our operations in Canada, which we account for in the local currency, the Canadian dollar. We translate most Canadian dollar denominated balance sheet accounts into our reporting currency, the U.S. dollar, at the end of period exchange rate, while most accounts in our statement of operations accounts are translated into our reporting currency based on the average exchange rate for each monthly period. Fluctuations in the exchange rates 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 is the indirect owner of our general partner through its direct ownership of USDG and is currently owned by Energy Capital Partners, Goldman Sachs and certain of USD’s management team. |
Assets Held For Sale | Assets Held For Sale We classify long-lived assets intended to be sold as held for sale in the period in which all of the following criteria are met: (1) management, having the authority to approve the action, commits to a plan to sell the asset or disposal group; (2) the asset or disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets; (3) an active program to locate a buyer and other actions required to complete the plan to sell the asset or disposal group have been initiated; (4) the sale of the asset or disposal group is probable, and transfer of the asset or disposal group is expected to qualify for recognition as a completed sale within one year, except if events or circumstances beyond our control extend the period of time required to sell the asset or disposal group beyond one year; (5) the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (6) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. We initially measure a long-lived asset or disposal group that is classified as held for sale at the lower of carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a long-lived asset or disposal group until the date of sale. We assess the fair value of a long-lived asset or disposal group less any costs to sell each reporting period it remains classified as held for sale and report any subsequent changes as an adjustment to the carrying value of the asset or disposal group, as long as the new carrying value does not exceed the carrying value of the asset at the time it was initially classified as held for sale. For the three and six months ended June 30, 2023 and 2022, there were no losses recorded on our held for sale assets. Upon determining that a long-lived asset or disposal group meets the criteria to be classified as held for sale, we discontinue depreciation and amortization and report long-lived assets and liabilities of the disposal group in the line items “ Assets held for sale ” and “ Liabilities held for sale ” in our consolidated balance sheets. |
Internal-use Software | Internal-use Software We capitalize certain internal-use software costs in accordance with Accounting Standard Codification, or ASC, 350-40, which are included in intangible assets. ASC 350-40 requires assets to be recorded at the cost to develop the asset and requires an intangible asset to be amortized over its useful life and for the useful life to be evaluated every reporting period to determine whether events or circumstances warrant a revision to the remaining period of amortization. If the estimate of useful life is changed, the remaining carrying amount of the intangible asset is amortized prospectively over the revised remaining useful life. We currently are amortizing these assets over a useful life of five years in the line item “ Depreciation and amortization ” in our consolidated statement of operations. Maintenance of and minor upgrades to internal-use software are classified as selling, general, and administrative expenses as incurred. |
Recently Adopted Accounting Pronouncements and Not Yet Adopted | Recently Adopted Accounting Pronouncements Liabilities — Supplier Finance Programs (ASU 2022-04) In September 2022, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update No. 2022-04, or ASU 2022-04, which amends Accounting Standards Codification Topic 405 to require that a buyer in a supplier finance program disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. To achieve that objective, the buyer should disclose qualitative and quantitative information about its supplier finance programs. In each annual reporting period, the buyer should disclose the key terms of the program, including a description of the payment terms and assets pledged as security or other forms of guarantees provided for the committed payment to the finance provider or intermediary. For the obligations that the buyer has confirmed as valid to the finance provider or intermediary the amount outstanding that remains unpaid by the buyer as of the end of the annual period, a description of where those obligations are presented in the balance sheet and a rollforward of those obligations during the annual period, including the amount of obligations confirmed and the amount of obligations subsequently paid should be disclosed. In each interim reporting period, the buyer should disclose the amount of obligations outstanding that the buyer has confirmed as valid to the finance provider or intermediary as of the end of the interim period. The pronouncement is effective for fiscal years beginning after December 15, 2022 including interim periods within those fiscal years, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. Early adoption was permitted. We adopted all the provisions of ASU 2022-04 on January 1, 2023. Refer to Note 10. Debt for additional details regarding our adoption of ASU 2022-04. |
NET INCOME PER LIMITED PARTNE_2
NET INCOME PER LIMITED PARTNER INTEREST (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
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: For the Three Months Ended June 30, 2023 Common General Total (in thousands, except per unit amounts) Net income attributable to limited partner interests in USD Partners LP $ 4,635 $ — $ 4,635 Less: Distributable earnings (1) — — — Excess net income $ 4,635 $ — $ 4,635 Weighted average units outstanding (2) 33,759 — 33,759 Distributable earnings per unit (3) $ — Underdistributed earnings per unit (4) 0.14 Net income per limited partner unit (basic and diluted) (5) $ 0.14 (1) There were no distributions payable for the three months ended June 30, 2023. Refer to Note 16. Partners’ Capital for further information. (2) Represents the weighted average units outstanding for the period. (3) Represents the total distributable earnings divided by the weighted average number of units outstanding for the period. (4) Represents the additional amount per unit necessary to distribute the excess net income for the period among our limited partners. (5) Our computation of net income per limited partner unit excludes the effects of 1,445,757 equity-classified phantom unit awards outstanding as they were anti-dilutive for the period presented. . For the Three Months Ended June 30, 2022 Common General Total (in thousands, except per unit amounts) Net income attributable to limited partner interests in USD Partners LP $ 3,805 $ — $ 3,805 Less: Distributable earnings (1) 4,292 — 4,292 Distributions in excess of earnings $ (487) $ — $ (487) Weighted average units outstanding (2) 33,378 — 33,378 Distributable earnings per unit (3) $ 0.13 Overdistributed earnings per unit (4) (0.01) Net income per limited partner unit (basic and diluted) (5) $ 0.12 (1) Represents the distributions paid for the period based upon the quarterly distribution amount of $0.1235 per unit or $0.494 on an annualized basis for the three months ended June 30, 2022. Amounts presented for each class of units include a proportionate amount of the $170 thousand distributed to holders of the Equity classified Phantom Units pursuant to the distribution equivalent rights granted under the Amended LTIP Plan. (2) Represents the weighted average units outstanding for the period. (3) Represents the total distributable earnings divided by the weighted average number of units outstanding for the period. (4) Represents the distributions in excess of earnings divided by the weighted average number of units outstanding. (5) Our computation of net income per limited partner unit excludes the effects of 1,373,347 equity-classified phantom unit awards outstanding as they were anti-dilutive for the period presented. For the Six Months Ended June 30, 2023 Common General Total (in thousands, except per unit amounts) Net income attributable to limited partner interests in USD Partners LP $ 6,610 $ — $ 6,610 Less: Distributable earnings (1) — — — Excess net income $ 6,610 $ — $ 6,610 Weighted average units outstanding (2) 33,663 — 33,663 Distributable earnings per unit (3) $ — Underdistributed earnings per unit (4) 0.20 Net income per limited partner unit (basic and diluted) (5) $ 0.20 (1) There were no distributions paid or payable for the six months ended June 30, 2023. Refer to Note 16. Partners’ Capital for further information. (2) Represents the weighted average units outstanding for the period. (3) Represents the total distributable earnings divided by the weighted average number of units outstanding for the period. (4) Represents the additional amount per unit necessary to distribute the excess net income for the period among our limited partners. (5) Our computation of net income per limited partner unit excludes the effects of 1,445,757 equity-classified phantom unit awards outstanding as they were anti-dilutive for the period presented. For the Six Months Ended June 30, 2022 Common General Total (in thousands, except per unit amounts) Net income (loss) attributable to general and limited partner interests in USD Partners LP (1) $ 12,647 $ (1,369) $ 11,278 Less: Distributable earnings (2) 7,925 3 7,928 Excess net income (distributions) $ 4,722 $ (1,372) $ 3,350 Weighted average units outstanding (3) 30,426 229 30,655 Distributable earnings per unit (4) $ 0.26 Underdistributed earnings per unit (5) 0.16 Net income per limited partner unit (basic and diluted) (6) $ 0.42 (1) Represents net income allocated to each class of units based on the actual ownership of the Partnership during the period. There were no amounts attributed to the general partner for its incentive distribution rights. (2) Represents the per unit distribution paid of $0.1235 per unit for the three months ended March 31, 2022 and June 30, 2022. Amounts presented for each class of units include a proportionate amount of the $337 thousand distributed to holders of the Equity-classified Phantom Units pursuant to the distribution equivalent rights granted under the Amended LTIP 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 additional amount per unit necessary to distribute the excess net income for the period among our limited partners and our general partners according to the distribution formula for available cash as set forth in our partnership agreement. (6) Our computation of net income per limited partner unit excludes the effects of 1,373,347 equity-classified phantom unit awards outstanding as they were anti-dilutive for the period presented. |
REVENUES (Tables)
REVENUES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenues | Additionally, the below tables summarize the geographic data for our revenues: Three Months Ended June 30, 2023 U.S. Canada Total (in thousands) Third party $ 1,158 $ 17,206 $ 18,364 Related party $ 1,106 $ 1 $ 1,107 Three Months Ended June 30, 2022 U.S. Canada Total (in thousands) Third party $ 5,971 $ 25,896 $ 31,867 Related party $ 1,874 $ — $ 1,874 Six Months Ended June 30, 2023 U.S. Canada Total (in thousands) Third party $ 3,614 $ 34,679 $ 38,293 Related party $ 2,246 $ 58 $ 2,304 Six Months Ended June 30, 2022 U.S. Canada Total (in thousands) Third party $ 13,307 $ 52,480 $ 65,787 Related party $ 3,740 $ — $ 3,740 |
Schedule of Remaining Performance Obligations | The transaction price allocated to the remaining performance obligations associated with our Terminal Service Agreements as of June 30, 2023 are as follows for the periods indicated: Six months ending December 31, 2023 2024 2025 2026 2027 Thereafter Total (in thousands) Terminalling Services (1) (2) $ 19,338 $ 26,125 $ 24,976 $ 24,976 $ 21,066 $ 75,488 $ 191,969 (1) A significant portion of our Terminal Services Agreements are denominated in Canadian dollars. We have converted the remaining performance obligations associated with these Canadian dollar-denominated contracts using the year-to-date average exchange rate of 0.7421 U.S. dollars for each Canadian dollar at June 30, 2023. (2) Includes fixed monthly minimum commitment fees per contracts and excludes constrained estimates of variable consideration for rate-escalations associated with an index, such as the consumer price index, as well as any incremental revenue associated with volume activity above the minimum volumes set forth within the contracts. |
Schedule of Changes of Balance of Contract Liabilities | The following table presents the amounts outstanding on our consolidated balance sheets and changes associated with the balance of our deferred revenue for the six months ended June 30, 2023: December 31, 2022 Cash Additions for Customer Prepayments Balance Sheet Reclassification Revenue Recognized June 30, 2023 (in thousands) Deferred revenue (1) $ 3,562 $ 1,746 $ — $ (3,562) $ 1,746 Other current liabilities (2) $ 5,681 $ — $ 392 $ (4,613) $ 1,460 Other non-current liabilities (2) $ 3,943 $ 88 $ (392) $ — $ 3,639 (1) Includes deferred revenue of $0.4 million at December 31, 2022, for estimated breakage associated with the make-up right options we granted our customers as discussed above. We had no deferred revenue at June 30, 2023 associated with make-up right options. (2) Includes cumulative revenue that has been deferred due to tiered billing provisions included in certain of our Canadian dollar-denominated contracts, as discussed above. As such, the change in “Other current liabilities” has been increased by $127 thousand and “Other non-current liabilities” presented has been increased by $88 thousand due to the impact of the change in the end of period exchange rate between June 30, 2023 and December 31, 2022. |
RESTRICTED CASH (Tables)
RESTRICTED CASH (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Restrictions on Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within our consolidated balance sheets to the amounts shown in our consolidated statements of cash flows for the specified periods: June 30, 2023 2022 (in thousands) Cash and cash equivalents $ 10,291 $ 4,333 Restricted cash 3,783 3,947 Total cash, cash equivalents and restricted cash $ 14,074 $ 8,280 |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within our consolidated balance sheets to the amounts shown in our consolidated statements of cash flows for the specified periods: June 30, 2023 2022 (in thousands) Cash and cash equivalents $ 10,291 $ 4,333 Restricted cash 3,783 3,947 Total cash, cash equivalents and restricted cash $ 14,074 $ 8,280 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Our property and equipment is comprised of the following asset classifications as of the dates indicated: June 30, 2023 December 31, 2022 Estimated (in thousands) Land $ 2,877 $ 10,110 N/A Trackage and facilities 86,252 108,325 10-30 Pipeline — 12,759 20-30 Equipment 14,600 22,553 3-20 Furniture 65 84 5-10 Total property and equipment 103,794 153,831 Accumulated depreciation (41,126) (47,360) Construction in progress (1) 179 423 Property and equipment, net $ 62,847 $ 106,894 (1) The amounts classified as “Construction in progress” are excluded from amounts being depreciated. These amounts represent property that has not been placed into productive service as of the respective consolidated balance sheet date. |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Summary of Lease Cost | We have noncancellable operating leases for railcars, buildings, storage tanks, offices, railroad tracks, and land. June 30, 2023 December 31, 2022 Weighted-average discount rate 6.7 % 4.1 % Weighted average remaining lease term in years 4.44 years 5.07 years Our total lease cost consisted of the following items for the dates indicated: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands) Operating lease cost $ 327 $ 1,390 $ 653 $ 2,905 Short term lease cost 30 130 61 161 Variable lease cost 1 13 7 31 Sublease income (287) (1,281) (570) (2,562) Total $ 71 $ 252 $ 151 $ 535 |
Schedule of Future Minimum Rental Commitments Under Noncancelable Operating Leases | The maturity analysis below presents the undiscounted cash payments we expect to make each period for property that we lease from others under noncancellable operating leases as of June 30, 2023 (in thousands): 2023 $ 895 2024 115 2025 114 2026 117 2027 121 Thereafter 384 Total lease payments $ 1,746 Less: imputed interest (197) Present value of lease liabilities $ 1,549 |
Schedule of Lease Income | In addition to these leases we also have lease income from storage tanks and lease income from our related party terminal services agreement associated with transloading renewable diesel at our West Colton Terminal that commenced in December 2021. Refer to Note 12. Transactions with Related Parties for additional discussion. Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands, except weighted average term) Lease income (1) $ 1,020 $ 2,494 $ 2,298 $ 4,980 Weighted average remaining lease term in years 3.21 (1) Lease income presented above includes lease income from related parties. Refer to Note 12. Transactions with Related Parties for additional discussion of lease income from a related party. In addition, lease income as discussed above totaling $0.7 million and $1.6 million for the three months ended June 30, 2023 and 2022, respectively, and $1.7 million and $3.2 million for the six months ended June 30, 2023 and 2022, respectively, is included in “ Terminalling services ” and “ Terminalling services — related party ” revenues on our consolidated statements of operations. |
Schedule of Operating Lease Income to be Received | The maturity analysis below presents the undiscounted future minimum lease payments we expect to receive from customers each period for property they lease from us under noncancellable operating leases as of June 30, 2023 (in thousands): 2023 $ 2,262 2024 2,947 2025 2,936 2026 2,687 Total $ 10,832 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Identifiable Intangible Assets | The composition, gross carrying amount and accumulated amortization of our identifiable intangible assets are as follows as of the dates indicated: June 30, 2023 December 31, 2022 (in thousands) Carrying amount: Customer service agreements $ — $ 3,832 Other 56 — Total carrying amount 56 3,832 Accumulated amortization: Customer service agreements — (306) Other (1) — Total accumulated amortization (1) (306) Total intangible assets, net $ 55 $ 3,526 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Our long-term debt balances included the following components as of the specified dates: June 30, 2023 December 31, 2022 (in thousands) Credit Agreement $ 195,900 $ 215,000 Less: Deferred financing costs, net (453) (908) Less: Long-term debt, current portion (195,447) (214,092) Total long-term debt, net $ — $ — |
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, 2023 December 31, 2022 (in millions) Aggregate borrowing capacity under Credit Agreement $ 275.0 $ 275.0 Less: Amounts outstanding under the Credit Agreement 195.9 215.0 Available under the Credit Agreement based on capacity $ 79.1 $ 60.0 Available under the Credit Agreement based on covenants (1) $ 1.7 $ 53.0 |
Schedule of Interest Expense, Net | Interest expense associated with our outstanding indebtedness was as follows for the specified periods: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands) Interest expense on the Credit Agreement $ 4,139 $ 1,825 $ 8,262 $ 2,971 Amortization of deferred financing costs 340 272 658 628 Total interest expense $ 4,479 $ 2,097 $ 8,920 $ 3,599 Subsequent to June 30, 2023, we amended the terms of our Credit Agreement. Refer to Note 19. Subsequent Event s — Credit Agreement Amendment |
TRANSACTIONS WITH RELATED PAR_2
TRANSACTIONS WITH RELATED PARTIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Deferred Revenue, Current Portion - Related Party | Our related party revenues from USD and affiliates are presented below in the following table for the indicated periods: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands) Terminalling services — related party $ 732 $ 662 $ 1,446 $ 1,317 Fleet leases — related party 287 913 570 1,825 Fleet services — related party 86 299 171 598 Freight and other reimbursables — related party 2 — 117 — $ 1,107 $ 1,874 $ 2,304 $ 3,740 We had the following amounts outstanding with USD and affiliates on our consolidated balance sheets as presented below in the following table for the indicated periods (1) : June 30, 2023 December 31, 2022 (in thousands) Accounts receivable — related party $ 318 $ 409 Accounts payable and accrued expenses — related party (1) $ 342 $ 382 Other current and non-current liabilities — related party (2) $ 188 $ 11 Deferred revenue — related party (3) $ — $ 128 (1) The table presented above does not include amounts payable to related parties associated with the Omnibus Agreement that are recorded to “ Accounts payable and accrued expenses — related party ” as discussed above. (2) Represents contract liabilities associated with lease agreements with USDM and USDCF. (3) Represents deferred revenues associated with our fleet services agreement with USD and affiliates for amounts we have collected from them for their prepaid leases. |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Summary of Reportable Segment Data For Continuing Operations | Three Months Ended June 30, 2023 Terminalling Fleet Corporate Total (in thousands) Revenues Terminalling services $ 18,364 $ — $ — $ 18,364 Terminalling services — related party 732 — — 732 Fleet leases — related party — 287 — 287 Fleet services — related party — 86 — 86 Freight and other reimbursables — — — — Freight and other reimbursables — related party — 2 — 2 Total revenues 19,096 375 — 19,471 Operating costs Subcontracted rail services 2,323 — — 2,323 Pipeline fees 5,834 — — 5,834 Freight and other reimbursables — 2 — 2 Operating and maintenance 717 298 — 1,015 Selling, general and administrative 746 20 3,387 4,153 Gain on sale of business — — — — Depreciation and amortization 1,723 — — 1,723 Total operating costs 11,343 320 3,387 15,050 Operating income 7,753 55 (3,387) 4,421 Interest expense 4 — 4,475 4,479 Gain associated with derivative instruments — — (4,755) (4,755) Foreign currency transaction loss 20 4 24 48 Other income, net (58) — (24) (82) Provision for (benefit from) income taxes 124 (28) — 96 Net income (loss) $ 7,663 $ 79 $ (3,107) $ 4,635 Three Months Ended June 30, 2022 Terminalling Fleet Corporate Total (in thousands) Revenues Terminalling services $ 31,704 $ — $ — $ 31,704 Terminalling services — related party 662 — — 662 Fleet leases — related party — 913 — 913 Fleet services — related party — 299 — 299 Freight and other reimbursables 163 — — 163 Freight and other reimbursables — related party — — — — Total revenues 32,529 1,212 — 33,741 Operating costs Subcontracted rail services 3,604 — — 3,604 Pipeline fees 8,389 — — 8,389 Freight and other reimbursables 163 — — 163 Operating and maintenance 2,245 972 — 3,217 Selling, general and administrative 1,650 33 5,712 7,395 Gain on sale of business — — — — Depreciation and amortization 5,765 — — 5,765 Total operating costs 21,816 1,005 5,712 28,533 Operating income (loss) 10,713 207 (5,712) 5,208 Interest expense 1 — 2,096 2,097 Gain associated with derivative instruments — — (812) (812) Foreign currency transaction loss 41 1 101 143 Other income, net (1) (2) (1) (4) Benefit from income taxes (5) (16) — (21) Net income (loss) $ 10,677 $ 224 $ (7,096) $ 3,805 Six Months Ended June 30, 2023 Terminalling Fleet Corporate Total (in thousands) Revenues Terminalling services $ 38,103 $ — $ — $ 38,103 Terminalling services — related party 1,446 — — 1,446 Fleet leases — related party — 570 — 570 Fleet services — related party — 171 — 171 Freight and other reimbursables 190 — — 190 Freight and other reimbursables — related party 115 2 — 117 Total revenues 39,854 743 — 40,597 Operating costs Subcontracted rail services 5,608 — — 5,608 Pipeline fees 11,307 — — 11,307 Freight and other reimbursables 305 2 — 307 Operating and maintenance 2,183 593 — 2,776 Selling, general and administrative 2,136 42 8,559 10,737 Gain on sale of business — — (6,202) (6,202) Depreciation and amortization 3,629 — — 3,629 Total operating costs 25,168 637 2,357 28,162 Operating income (loss) 14,686 106 (2,357) 12,435 Interest expense 4 — 8,916 8,920 Gain associated with derivative instruments — — (2,905) (2,905) Foreign currency transaction loss 43 4 55 102 Other income, net (90) — (26) (116) Benefit from income taxes (154) (22) — (176) Net income (loss) $ 14,883 $ 124 $ (8,397) $ 6,610 Six Months Ended June 30, 2022 Terminalling Fleet Corporate Total (in thousands) Revenues Terminalling services $ 65,527 $ — $ — $ 65,527 Terminalling services — related party 1,317 — — 1,317 Fleet leases — related party — 1,825 — 1,825 Fleet services — related party — 598 — 598 Freight and other reimbursables 260 — — 260 Freight and other reimbursables — related party — — — — Total revenues 67,104 2,423 — 69,527 Operating costs Subcontracted rail services 7,595 — — 7,595 Pipeline fees 16,890 — — 16,890 Freight and other reimbursables 260 — — 260 Operating and maintenance 4,869 1,965 — 6,834 Selling, general and administrative 6,437 90 9,614 16,141 Gain on sale of business — — — — Depreciation and amortization 11,604 — — 11,604 Total operating costs 47,655 2,055 9,614 59,324 Operating income (loss) 19,449 368 (9,614) 10,203 Interest expense 118 — 3,481 3,599 Gain associated with derivative instruments — — (6,896) (6,896) Foreign currency transaction loss 1,739 1 50 1,790 Other income, net (24) (2) (1) (27) Provision for income taxes 411 48 — 459 Net income (loss) $ 17,205 $ 321 $ (6,248) $ 11,278 |
Reconciliation of Adjusted EBITDA To Loss From Continuing Operations | The following tables present the computation of Segment Adjusted EBITDA, which is a measure determined in accordance with GAAP, for each of our segments for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, Terminalling Services Segment 2023 2022 2023 2022 (in thousands) Net income $ 7,663 $ 10,677 $ 14,883 $ 17,205 Interest expense (income), net (1) (52) (1) (83) 115 Depreciation and amortization 1,723 5,765 3,629 11,604 Provision for (benefit from) income taxes 124 (5) (154) 411 Foreign currency transaction loss (2) 20 41 43 1,739 Loss associated with disposal of assets — 3 — 3 Non-cash deferred amounts (3) (1,651) (329) (3,302) (1,886) Segment Adjusted EBITDA attributable to Hardisty South entities prior to acquisition (4) — — — (258) Segment Adjusted EBITDA $ 7,827 $ 16,151 $ 15,016 $ 28,933 (1) Represents interest expense associated with the construction loan agreement that existed prior to our acquisition of the Hardisty South Terminal entities and interest income associated with our Terminalling Services segment that is included in “ Other income, net ” in our consolidated statements of operations. (2) Represents foreign exchange transaction amounts associated with activities between our U.S. and Canadian subsidiaries. (3) Represents the change in non-cash contract assets and liabilities associated with revenue recognized at blended rates based on tiered rate structures in certain of our customer contracts and deferred revenue associated with deficiency credits that are expected to be used in the future prior to their expiration. Amounts presented are net of the corresponding prepaid Gibson pipeline fee that will be recognized as expense concurrently with the recognition of revenue. (4) Segment adjusted EBITDA attributable to the Hardisty South entities for the three months ended March 31, 2022 was excluded from the Terminalling Services Segment Adjusted EBITDA, as these amounts were generated by the Hardisty South entities prior to the Partnership’s acquisition. Three Months Ended June 30, Six Months Ended June 30, Fleet Services Segment 2023 2022 2023 2022 (in thousands) Net income $ 79 $ 224 $ 124 $ 321 Interest income (1) — (2) — (2) Foreign currency transaction loss (2) 4 1 4 1 Provision for (benefit from) income taxes $ (28) $ (16) $ (22) $ 48 Segment Adjusted EBITDA $ 55 $ 207 $ 106 $ 368 (1) Represents interest income associated with our Fleet Services segment that is included in “ Other income, net ” in our consolidated statements of operations. (2) Represents foreign exchange transaction amounts associated with activities between our U.S. and Canadian subsidiaries. |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 the line items specified below within our consolidated balance sheets, the amounts of which were as follows at the dates indicated: June 30, 2023 December 31, 2022 (in thousands) Other current assets $ 2,383 $ 1,448 Other non-current liabilities (2,229) (3,587) $ 154 $ (2,139) |
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, 2023 2022 2023 2022 (in thousands) Gain associated with derivative instruments $ (4,755) $ (812) $ (2,905) $ (6,896) |
Schedule Of Derivative Instruments | The following table presents summarized information about the fair values of our outstanding interest rate contracts for the periods indicated: June 30, 2023 December 31, 2022 Notional Interest Rate Parameters Fair Value Fair Value (in thousands) Swap Agreements Swap maturing October 2027 $ 175,000,000 3.956 % $ 154 $ (2,139) |
UNIT BASED COMPENSATION (Tables
UNIT BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-Based Compensation, Activity | The following tables present the award activity for our Equity-classified Phantom Units: Director and Independent Consultant Phantom Units Employee Phantom Units Weighted-Average Grant Date Fair Value Per Phantom Unit Phantom Unit awards at December 31, 2022 39,408 1,328,964 $ 6.91 Granted 39,408 616,758 $ 3.54 Vested (39,408) (527,448) $ 7.85 Forfeited — (11,925) $ 5.60 Phantom Unit awards at June 30, 2023 39,408 1,406,349 $ 5.02 Director and Independent Consultant Phantom Units Employee Phantom Units Weighted-Average Grant Date Fair Value Per Phantom Unit Phantom Unit awards at December 31, 2021 26,272 1,317,493 $ 8.21 Granted 39,408 536,729 $ 5.85 Vested (26,272) (519,342) $ 9.01 Forfeited — (941) $ 5.37 Phantom Unit awards at June 30, 2022 39,408 1,333,939 $ 6.91 The following tables present the award activity for our Liability-classified Phantom Units: Director and Independent Consultant Phantom Units Employee Phantom Units Weighted-Average Grant Date Fair Value Per Phantom Unit Phantom Unit awards at December 31, 2022 13,136 56,847 $ 6.27 Granted 13,136 45,423 $ 3.54 Vested (13,136) (3,022) $ 5.67 Phantom Unit awards at June 30, 2023 13,136 99,248 $ 4.93 Director and Independent Consultant Phantom Units Employee Phantom Units Weighted-Average Grant Date Fair Value Per Phantom Unit Phantom Unit awards at December 31, 2021 13,136 63,730 $ 7.26 Granted 13,136 36,459 $ 5.85 Vested (13,136) — $ 4.82 Phantom Unit awards at June 30, 2022 13,136 100,189 $ 6.92 |
Schedule of Phantom Units Granted | We made payments to holders of the Phantom Units pursuant to the associated DERs we granted to them under the Award Agreements as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands) Equity-classified Phantom Units (1) $ — $ 167 $ 169 $ 330 Liability-classified Phantom Units — 14 9 23 Total $ — $ 181 $ 178 $ 353 (1) We reclassified $7 thousand and $8 thousand to unit based compensation expense for DERs paid in relation to Phantom Units that have been forfeited for the three and six months ended June 30, 2023, respectively. We had no significant amounts reclassified for the three and six months ended June 30, 2022, respectively, for forfeitures. |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 2022 (in thousands) Cash paid for income taxes, net (1) $ 1,196 $ 680 Cash paid for interest $ 8,406 $ 2,360 Cash paid for operating leases $ 587 $ 3,576 (1) Includes the net effect of tax refunds of $11 thousand received in the second quarter of 2023 associated with prior period Canadian taxes and $84 thousand received in the second quarter of 2022 associated with carrying back U.S. net operating losses incurred during 2020 and prior periods allowed for by the provisions of the CARES Act. For the six months ended June 30, 2023 and 2022, we had non-cash investing activities for capital expenditures for property and equipment that were financed through “A ccounts payable and accrued expenses ” and “ Accounts Payable and accrued expenses — related party ” and an accrued reimbursement associated with our collaborative arrangement included in “ Accounts receivable, net ” as presented in the table below for the periods indicated: Six months ended June 30, 2023 2022 (in thousands) Property and equipment financed through accounts payable and accrued expenses $ (302) $ (1,941) Accrued reimbursement of property and equipment $ (12) $ — |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Casper Terminal | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Divestiture, consideration | $ 33 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | Jun. 30, 2023 |
Internal-use Software | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 5 years |
ACQUISITIONS AND DISPOSITIONS -
ACQUISITIONS AND DISPOSITIONS - Hardisty South Terminal Acquisition (Details) - Hardisty South Terminal bbl / d in Millions, $ in Millions | Apr. 06, 2022 USD ($) bbl / d railcar | Apr. 01, 2022 shares |
Asset Acquisition [Line Items] | ||
Percentage of business acquired | 100% | |
Consideration in cash | $ | $ 75 | |
Number of common units acquired (in shares) | shares | 5,751,136 | |
Amount of transloading capacity per day per unit train | railcar | 120 | |
Number of barrels of takeaway capacity per day | bbl / d | 112.5 |
ACQUISITIONS AND DISPOSITIONS_2
ACQUISITIONS AND DISPOSITIONS - Casper Terminal Divestiture (Details) $ in Thousands, bbl in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2023 USD ($) bbl / d tank bbl | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | |
Asset Disposal | |||||
Gain on sale of business | $ 0 | $ 0 | $ 6,202 | $ 0 | |
Provision for (benefit from) income taxes | 96 | (21) | (176) | 459 | |
Casper Terminal | |||||
Asset Disposal | |||||
Equity method investment membership percentage | 100% | ||||
Divestiture, consideration | $ 33,000 | ||||
Divestiture, carrying value | $ 26,800 | ||||
Number of barrels of takeaway capacity per day | bbl / d | 100,000 | ||||
Number of customer dedicated to storage | tank | 6 | ||||
Number of barrels of total capacity per day | bbl | 0.9 | ||||
Gain on sale of business | $ 6,200 | $ 0 | $ 0 | 6,202 | $ 0 |
Provision for (benefit from) income taxes | $ 0 |
NET INCOME PER LIMITED PARTNE_3
NET INCOME PER LIMITED PARTNER INTEREST - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Limited Partners' Capital Account [Line Items] | |||||
Net income attributable to limited partner interests in USD Partners LP | $ 4,635 | $ 3,805 | $ 6,610 | $ 11,278 | |
Less: Distributable earnings | 0 | 4,292 | 0 | 7,928 | |
Distributions in excess of earnings | $ 4,635 | $ (487) | $ 6,610 | $ 3,350 | |
Weighted average units outstanding (in shares) | 33,759,000 | 33,378,000 | 33,663,000 | 30,655,000 | |
Partners capital distribution payable amount | $ 0 | ||||
Partners share targeted quarterly distribution amount (usd per share) | $ 0.1235 | $ 0.1235 | $ 0 | ||
Partners' annual distribution amount per share (usd per share) | $ 0.494 | ||||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 1,445,757 | 1,373,347 | 1,445,757 | 1,373,347 | |
Phantom share units (PSUs) | |||||
Limited Partners' Capital Account [Line Items] | |||||
Distributed amount | $ 170 | $ 337 | |||
Common units | |||||
Limited Partners' Capital Account [Line Items] | |||||
Weighted average units outstanding (in shares) | 33,759,000 | 33,378,000 | 33,663,000 | 30,426,000 | |
Limited Partner | Common units | |||||
Limited Partners' Capital Account [Line Items] | |||||
Net income attributable to limited partner interests in USD Partners LP | $ 4,635 | $ 3,805 | $ 6,610 | $ 12,647 | |
Less: Distributable earnings | 0 | 4,292 | 0 | 7,925 | |
Distributions in excess of earnings | $ 4,635 | $ (487) | $ 6,610 | $ 4,722 | |
Weighted average units outstanding (in shares) | 33,759,000 | 33,378,000 | 33,663,000 | 30,426,000 | |
Distributable earnings per unit (usd per share) | $ 0 | $ 0.13 | $ 0 | $ 0.26 | |
Underdistributed earnings per unit (usd per share) | 0.14 | (0.01) | 0.20 | 0.16 | |
Net income per limited partner unit - basic (usd per share) | 0.14 | 0.12 | 0.20 | 0.42 | |
Net income per limited partner unit - diluted (usd per share) | $ 0.14 | $ 0.12 | $ 0.20 | $ 0.42 | |
Distributed amount | $ 0 | $ 3,636 | $ 2,154 | $ 7,095 | |
General Partner | |||||
Limited Partners' Capital Account [Line Items] | |||||
Net income attributable to limited partner interests in USD Partners LP | 0 | 0 | 0 | (1,369) | |
Less: Distributable earnings | 0 | 0 | 0 | 3 | |
Distributions in excess of earnings | $ 0 | $ 0 | $ 0 | $ (1,372) | |
Weighted average units outstanding (in shares) | 0 | 0 | 0 | 229,000 | |
Distributed amount | $ 0 | $ 59 |
REVENUES - Narrative (Details)
REVENUES - Narrative (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | |
Disaggregation of Revenue [Line Items] | ||
Number of reportable segments | segment | 2 | |
Contract duration | one year or less | |
Breakage rate percentage | 100% | |
Related party | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | $ 0 | $ 128 |
Estimated breakage bssociated with the make-upright options | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | 0 | 400 |
Fleet leases | Related party | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | $ 0 | $ 100 |
REVENUES - Schedule of Geograph
REVENUES - Schedule of Geographic Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Related party | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 1,107 | $ 1,874 | $ 2,304 | $ 3,740 |
Third party | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 18,364 | 31,867 | 38,293 | 65,787 |
UNITED STATES | Related party | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,106 | 1,874 | 2,246 | 3,740 |
UNITED STATES | Third party | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,158 | 5,971 | 3,614 | 13,307 |
CANADA | Related party | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1 | 0 | 58 | 0 |
CANADA | Third party | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 17,206 | $ 25,896 | $ 34,679 | $ 52,480 |
REVENUES - Schedule of Remainin
REVENUES - Schedule of Remaining Performance Obligation (Details) $ in Thousands | Jun. 30, 2023 USD ($) $ / $ |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Exchange rate (USD per CAD) | $ / $ | 0.7421 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction, period | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction, period | 0 years |
Terminalling services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 191,969 |
Terminalling services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 19,338 |
Expected timing of satisfaction, period | 6 months |
Terminalling services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 26,125 |
Expected timing of satisfaction, period | 1 year |
Terminalling services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 24,976 |
Expected timing of satisfaction, period | 1 year |
Terminalling services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 24,976 |
Expected timing of satisfaction, period | 1 year |
Terminalling services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 21,066 |
Expected timing of satisfaction, period | 1 year |
Terminalling services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 75,488 |
Expected timing of satisfaction, period | 0 years |
Fleet services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction, period | 6 months |
Fleet services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction, period | 1 year |
Fleet services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction, period | 1 year |
Fleet services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction, period | 1 year |
Fleet services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction, period | 1 year |
Fleet services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction, period | 0 years |
REVENUES - Schedule of Change i
REVENUES - Schedule of Change in Customer Liability (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Nonrelated Party | ||
Change In Contract With Customer Liability [Roll Forward] | ||
Deferred revenue, beginning of the period | $ 3,562 | |
Cash Additions for Customer Prepayments | 1,746 | |
Balance Sheet Reclassification | 0 | |
Revenue Recognized | (3,562) | |
Deferred revenue, end of the period | 1,746 | $ 3,562 |
Third party | ||
Change In Contract With Customer Liability [Roll Forward] | ||
Effect of exchange rate on contract with customer liability, current | 127 | 127 |
Effect of exchange rate on contract with customer liability | 88 | 88 |
Estimated breakage bssociated with the make-upright options | ||
Change In Contract With Customer Liability [Roll Forward] | ||
Deferred revenue, beginning of the period | 400 | |
Deferred revenue, end of the period | 0 | 400 |
Other current liabilities | ||
Change In Contract With Customer Liability [Roll Forward] | ||
Contract with customer, liability beginning of the period | 5,681 | |
Cash Additions for Customer Prepayments | 0 | |
Balance Sheet Reclassification | 392 | |
Revenue Recognized | (4,613) | |
Contract with customer, liability end of the period | 1,460 | 5,681 |
Other non-current liabilities | ||
Change In Contract With Customer Liability [Roll Forward] | ||
Contract with customer, liability beginning of the period | 3,943 | |
Cash Additions for Customer Prepayments | 88 | |
Balance Sheet Reclassification | (392) | |
Revenue Recognized | 0 | |
Contract with customer, liability end of the period | $ 3,639 | $ 3,943 |
RESTRICTED CASH - Narrative (De
RESTRICTED CASH - Narrative (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Casper Terminal | |
Asset Disposal | |
Indemnity escrow | $ 2 |
RESTRICTED CASH - Cash, Cash Eq
RESTRICTED CASH - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 10,291 | $ 2,530 | $ 4,333 | |
Restricted cash | 3,783 | 3,250 | 3,947 | |
Total cash, cash equivalents and restricted cash | $ 14,074 | $ 5,780 | $ 8,280 | $ 12,717 |
PROPERTY AND EQUIPMENT - Schedu
PROPERTY AND EQUIPMENT - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 103,794 | $ 153,831 |
Accumulated depreciation | (41,126) | (47,360) |
Construction in progress | 179 | 423 |
Property and equipment, net | 62,847 | 106,894 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 2,877 | 10,110 |
Trackage and facilities | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 86,252 | 108,325 |
Trackage and facilities | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, estimated depreciable useful life | 10 years | |
Trackage and facilities | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, estimated depreciable useful life | 30 years | |
Pipeline | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 0 | 12,759 |
Pipeline | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, estimated depreciable useful life | 20 years | |
Pipeline | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, estimated depreciable useful life | 30 years | |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 14,600 | 22,553 |
Equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, estimated depreciable useful life | 3 years | |
Equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, estimated depreciable useful life | 20 years | |
Furniture | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 65 | $ 84 |
Furniture | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, estimated depreciable useful life | 5 years | |
Furniture | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, estimated depreciable useful life | 10 years |
PROPERTY AND EQUIPMENT - Narrat
PROPERTY AND EQUIPMENT - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation and amortization | $ 1.7 | $ 2.6 | $ 3.5 | $ 5.3 |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Leases [Abstract] | |||||
Weighted-average discount rate | 6.70% | 6.70% | 4.10% | ||
Weighted average remaining lease term in years | 4 years 5 months 8 days | 4 years 5 months 8 days | 5 years 25 days | ||
Operating lease cost | $ 327 | $ 1,390 | $ 653 | $ 2,905 | |
Short term lease cost | 30 | 130 | 61 | 161 | |
Variable lease cost | 1 | 13 | 7 | 31 | |
Sublease income | (287) | (1,281) | (570) | (2,562) | |
Total | $ 71 | $ 252 | $ 151 | $ 535 |
LEASES - Future payments (Detai
LEASES - Future payments (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Leases [Abstract] | |
2023 | $ 895 |
2024 | 115 |
2025 | 114 |
2026 | 117 |
2027 | 121 |
Thereafter | 384 |
Total lease payments | 1,746 |
Less: imputed interest | (197) |
Present value of lease liabilities | $ 1,549 |
LEASES - Lease Income Informati
LEASES - Lease Income Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Lessee, Lease, Description [Line Items] | ||||
Lease income | $ 1,020 | $ 2,494 | $ 2,298 | $ 4,980 |
Weighted average remaining lease term in years | 3 years 2 months 15 days | |||
Terminalling services | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease income | $ 700 | $ 1,600 | $ 1,700 | $ 3,200 |
LEASES - Future Lease Income (D
LEASES - Future Lease Income (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Leases [Abstract] | |
2023 | $ 2,262 |
2024 | 2,947 |
2025 | 2,936 |
2026 | 2,687 |
Total | $ 10,832 |
INTANGIBLE ASSETS - Intangible
INTANGIBLE ASSETS - Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Carrying amount: | ||
Total carrying amount | $ 56 | $ 3,832 |
Accumulated amortization: | ||
Total accumulated amortization | (1) | (306) |
Total intangible assets, net | 55 | 3,526 |
Customer service agreements | ||
Carrying amount: | ||
Total carrying amount | 0 | 3,832 |
Accumulated amortization: | ||
Total accumulated amortization | 0 | (306) |
Other | ||
Carrying amount: | ||
Total carrying amount | 56 | 0 |
Accumulated amortization: | ||
Total accumulated amortization | $ (1) | $ 0 |
INTANGIBLE ASSETS - Narrative (
INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | $ 0 | $ 3.2 | $ 0.1 | $ 6.3 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) | 1 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended | 12 Months Ended | |||
Oct. 31, 2021 USD ($) | Sep. 30, 2023 | Jun. 30, 2023 USD ($) | Mar. 31, 2023 | Jun. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jan. 31, 2023 USD ($) | |
Line of Credit Facility [Line Items] | ||||||||
Maximum consolidated leverage ratio | 5.5 | 4.5 | ||||||
Minimum Consolidated Interest Coverage Ratio | 2.25 | 2.5 | ||||||
Consolidated leverage ratio, pro forma | 4.5 | |||||||
Minimum liquidity amount, pro forma | $ 20,000,000 | |||||||
Forecast | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum consolidated leverage ratio | 5.25 | |||||||
Minimum Consolidated Interest Coverage Ratio | 2 | |||||||
Credit Agreement | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Deferred financing costs | $ 453,000 | 453,000 | $ 453,000 | $ 908,000 | $ 203,000 | |||
Credit Agreement | Secured Debt | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Period of extension of maturity date | 1 year | 1 year | ||||||
Maximum borrowing capacity | 275,000,000 | 275,000,000 | $ 275,000,000 | $ 275,000,000 | ||||
Credit Agreement | Secured Debt | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 275,000,000 | |||||||
Line of credit facility, accordion feature, higher borrowing capacity option | $ 390,000,000 | $ 390,000,000 | $ 390,000,000 | |||||
Interest rate during period | 8.25% | 8.25% | 8.25% | 6.92% | ||||
Commitment fee percentage | 0.50% | |||||||
Credit Agreement | Secured Debt | Standby Letters of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 20,000,000 | $ 20,000,000 | $ 20,000,000 | |||||
Credit Agreement | Secured Debt | Swingline Sub-facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 20,000,000 | $ 20,000,000 | $ 20,000,000 |
DEBT - Schedule of Long-term De
DEBT - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jan. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | |||
Less: Long-term debt, current portion | $ (195,447) | $ (214,092) | |
Total long-term debt, net | 0 | 0 | |
Credit Agreement | |||
Debt Instrument [Line Items] | |||
Less: Deferred financing costs, net | (453) | $ (203) | (908) |
Less: Long-term debt, current portion | (195,447) | (214,092) | |
Revolving Credit Facility | Secured Debt | Credit Agreement | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 195,900 | $ 215,000 |
DEBT - Schedule of Line of Cred
DEBT - Schedule of Line of Credit Facilities (Details) - Secured Debt - Credit Agreement | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Oct. 31, 2021 USD ($) | |
Line of Credit Facility [Line Items] | |||
Aggregate borrowing capacity under Credit Agreement | $ 275,000,000 | $ 275,000,000 | |
Available under the Credit Agreement based on capacity | 79,100,000 | 60,000,000 | |
Available under the Credit Agreement based on covenants | $ 1,700,000 | $ 53,000,000 | |
Borrowing capacity limit multiple of EBITDA | 5.5 | 5 | |
Covenants | |||
Line of Credit Facility [Line Items] | |||
Available under the Credit Agreement based on covenants | $ 1,700,000 | $ 53,000,000 | |
Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Aggregate borrowing capacity under Credit Agreement | $ 275,000,000 | ||
Less: Amounts outstanding under the Credit Agreement | $ 195,900,000 | $ 215,000,000 |
DEBT - Schedule of Interest Exp
DEBT - Schedule of Interest Expense, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Debt Disclosure [Abstract] | ||||
Interest expense on the Credit Agreement | $ 4,139 | $ 1,825 | $ 8,262 | $ 2,971 |
Amortization of deferred financing costs | 340 | 272 | 658 | 628 |
Total interest expense | $ 4,479 | $ 2,097 | $ 8,920 | $ 3,599 |
DEBT - Supplier Financing Agree
DEBT - Supplier Financing Agreement (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Supplier Financing Agreement | ||
Supplier Finance Program [Line Items] | ||
Outstanding payment obligation | $ 361 | $ 19 |
COLLABORATIVE ARRANGEMENT (Deta
COLLABORATIVE ARRANGEMENT (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Pipeline fees | $ 5.8 | $ 8.4 | $ 11.3 | $ 16.9 |
TRANSACTIONS WITH RELATED PAR_3
TRANSACTIONS WITH RELATED PARTIES - Nature of Relationship (Details) - USD ($) $ in Millions | 6 Months Ended | |||||
Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Common units | Limited Partner | ||||||
Related Party Transaction [Line Items] | ||||||
Partners' capital account (in shares) | 33,758,607,000 | 33,758,607,000 | 33,381,187,000 | 33,379,431,000 | 27,619,909,000 | 27,268,878,000 |
Common units | Limited Partner | USDG | ||||||
Related Party Transaction [Line Items] | ||||||
Partners' capital account (in shares) | 17,308,226 | |||||
Units pledged as collateral (in shares) | $ 10 | |||||
USDG | Limited Partner | ||||||
Related Party Transaction [Line Items] | ||||||
Limited partner interest percentage | 51.30% |
TRANSACTIONS WITH RELATED PAR_4
TRANSACTIONS WITH RELATED PARTIES - Omnibus Agreement (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||||
Selling, general and administrative costs | $ 4,153 | $ 7,395 | $ 10,737 | $ 16,141 | |
Limited Partner | USDG | Omnibus Agreement | |||||
Related Party Transaction [Line Items] | |||||
Selling, general and administrative costs | 1,800 | $ 2,600 | 4,000 | $ 4,600 | |
Accounts payable | $ 300 | $ 300 | $ 800 |
TRANSACTIONS WITH RELATED PAR_5
TRANSACTIONS WITH RELATED PARTIES - USD Services Agreement (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Related Party Transaction [Line Items] | ||||
Selling, general and administrative | $ 4,153 | $ 7,395 | $ 10,737 | $ 16,141 |
Related party | ||||
Related Party Transaction [Line Items] | ||||
Selling, general and administrative | 1,795 | $ 2,565 | 3,979 | 7,889 |
Hardisty South entities | USD Shared Services Agreement | Related party | ||||
Related Party Transaction [Line Items] | ||||
Selling, general and administrative | $ 0 | $ 0 | $ 3,200 |
TRANSACTIONS WITH RELATED PAR_6
TRANSACTIONS WITH RELATED PARTIES - Marketing Services Agreement - West Colton Terminal (Details) | 1 Months Ended |
Jun. 30, 2021 | |
USDCF | Marketing Services Agreement | Subsidiaries | |
Related Party Transaction [Line Items] | |
Agreement term | 5 years |
TRANSACTIONS WITH RELATED PAR_7
TRANSACTIONS WITH RELATED PARTIES - Related Party Revenue and Deferred Revenue (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) railcar | Jun. 30, 2022 USD ($) | |
Related Party Transaction [Line Items] | ||||
Total revenues | $ 19,471 | $ 33,741 | $ 40,597 | $ 69,527 |
Subsidiaries | USDM | Marketing Services Agreement | ||||
Related Party Transaction [Line Items] | ||||
Number of railcars leased | railcar | 200 | |||
Related party | USDM | ||||
Related Party Transaction [Line Items] | ||||
Total revenues | 1,107 | 1,874 | $ 2,304 | 3,740 |
Related party | USDM | Terminalling services | ||||
Related Party Transaction [Line Items] | ||||
Total revenues | 732 | 662 | 1,446 | 1,317 |
Related party | USDM | Fleet leases | ||||
Related Party Transaction [Line Items] | ||||
Total revenues | 287 | 913 | 570 | 1,825 |
Related party | USDM | Fleet services | ||||
Related Party Transaction [Line Items] | ||||
Total revenues | 86 | 299 | 171 | 598 |
Related party | USDM | Freight and other reimbursables | ||||
Related Party Transaction [Line Items] | ||||
Total revenues | $ 2 | $ 0 | $ 117 | $ 0 |
TRANSACTIONS WITH RELATED PAR_8
TRANSACTIONS WITH RELATED PARTIES - Schedule of Deferred Revenue, Current Portion - Related Party (Details) - Terminalling and Fleets Services Agreements - Related party - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Related Party Transaction [Line Items] | ||
Other current and non-current liabilities — related party | $ 188 | $ 11 |
Lease revenues | ||
Related Party Transaction [Line Items] | ||
Accounts receivable — related party | 318 | 409 |
Accounts payable and accrued expenses — related party | 342 | 382 |
Customer prepayments, current position | ||
Related Party Transaction [Line Items] | ||
Deferred revenue — related party | $ 0 | $ 128 |
SEGMENT REPORTING - Narrative (
SEGMENT REPORTING - Narrative (Details) | 6 Months Ended |
Jun. 30, 2023 segment | |
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, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Fleet leases — related party | $ 1,020 | $ 2,494 | $ 2,298 | $ 4,980 |
Total revenues | 19,471 | 33,741 | 40,597 | 69,527 |
Operating costs | ||||
Operating and maintenance | 1,015 | 3,217 | 2,776 | 6,834 |
Selling, general and administrative | 4,153 | 7,395 | 10,737 | 16,141 |
Gain on sale of business | 0 | 0 | (6,202) | 0 |
Depreciation and amortization | 1,723 | 5,765 | 3,629 | 11,604 |
Total operating costs | 15,050 | 28,533 | 28,162 | 59,324 |
Operating income | 4,421 | 5,208 | 12,435 | 10,203 |
Interest expense | 4,479 | 2,097 | 8,920 | 3,599 |
Gain associated with derivative instruments | (4,755) | (812) | (2,905) | (6,896) |
Foreign currency transaction loss | 48 | 143 | 102 | 1,790 |
Other income, net | (82) | (4) | (116) | (27) |
Provision for (benefit from) income taxes | 96 | (21) | (176) | 459 |
Net income | 4,635 | 3,805 | 6,610 | 11,278 |
Related party | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Revenues | 1,107 | 1,874 | 2,304 | 3,740 |
Fleet leases — related party | 287 | 913 | 570 | 1,825 |
Operating costs | ||||
Operating and maintenance | 0 | 127 | 0 | 258 |
Selling, general and administrative | 1,795 | 2,565 | 3,979 | 7,889 |
Operating Segments | Terminalling Services Segment | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Total revenues | 19,096 | 32,529 | 39,854 | 67,104 |
Operating costs | ||||
Operating and maintenance | 717 | 2,245 | 2,183 | 4,869 |
Selling, general and administrative | 746 | 1,650 | 2,136 | 6,437 |
Gain on sale of business | 0 | 0 | 0 | 0 |
Depreciation and amortization | 1,723 | 5,765 | 3,629 | 11,604 |
Total operating costs | 11,343 | 21,816 | 25,168 | 47,655 |
Operating income | 7,753 | 10,713 | 14,686 | 19,449 |
Interest expense | 4 | 1 | 4 | 118 |
Gain associated with derivative instruments | 0 | 0 | 0 | 0 |
Foreign currency transaction loss | 20 | 41 | 43 | 1,739 |
Other income, net | (58) | (1) | (90) | (24) |
Provision for (benefit from) income taxes | 124 | (5) | (154) | 411 |
Net income | 7,663 | 10,677 | 14,883 | 17,205 |
Operating Segments | Terminalling Services Segment | Related party | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Fleet leases — related party | 0 | 0 | 0 | 0 |
Operating Segments | Fleet Services Segment | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Total revenues | 375 | 1,212 | 743 | 2,423 |
Operating costs | ||||
Operating and maintenance | 298 | 972 | 593 | 1,965 |
Selling, general and administrative | 20 | 33 | 42 | 90 |
Gain on sale of business | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Total operating costs | 320 | 1,005 | 637 | 2,055 |
Operating income | 55 | 207 | 106 | 368 |
Interest expense | 0 | 0 | 0 | 0 |
Gain associated with derivative instruments | 0 | 0 | 0 | 0 |
Foreign currency transaction loss | 4 | 1 | 4 | 1 |
Other income, net | 0 | (2) | 0 | (2) |
Provision for (benefit from) income taxes | (28) | (16) | (22) | 48 |
Net income | 79 | 224 | 124 | 321 |
Operating Segments | Fleet Services Segment | Related party | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Fleet leases — related party | 287 | 913 | 570 | 1,825 |
Corporate | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Operating costs | ||||
Operating and maintenance | 0 | 0 | 0 | 0 |
Selling, general and administrative | 3,387 | 5,712 | 8,559 | 9,614 |
Gain on sale of business | 0 | 0 | (6,202) | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Total operating costs | 3,387 | 5,712 | 2,357 | 9,614 |
Operating income | (3,387) | (5,712) | (2,357) | (9,614) |
Interest expense | 4,475 | 2,096 | 8,916 | 3,481 |
Gain associated with derivative instruments | (4,755) | (812) | (2,905) | (6,896) |
Foreign currency transaction loss | 24 | 101 | 55 | 50 |
Other income, net | (24) | (1) | (26) | (1) |
Provision for (benefit from) income taxes | 0 | 0 | 0 | 0 |
Net income | (3,107) | (7,096) | (8,397) | (6,248) |
Corporate | Related party | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Fleet leases — related party | 0 | 0 | 0 | 0 |
Terminalling services | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Revenues | 18,364 | 31,704 | 38,103 | 65,527 |
Fleet leases — related party | 700 | 1,600 | 1,700 | 3,200 |
Terminalling services | Related party | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Revenues | 732 | 662 | 1,446 | 1,317 |
Terminalling services | Operating Segments | Terminalling Services Segment | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Revenues | 18,364 | 31,704 | 38,103 | 65,527 |
Terminalling services | Operating Segments | Terminalling Services Segment | Related party | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Revenues | 732 | 662 | 1,446 | 1,317 |
Terminalling services | Operating Segments | Fleet Services Segment | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Revenues | 0 | 0 | 0 | 0 |
Terminalling services | Operating Segments | Fleet Services Segment | Related party | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Revenues | 0 | 0 | 0 | 0 |
Terminalling services | Corporate | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Revenues | 0 | 0 | 0 | 0 |
Terminalling services | Corporate | Related party | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Revenues | 0 | 0 | 0 | 0 |
Fleet services | Related party | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Revenues | 86 | 299 | 171 | 598 |
Fleet services | Operating Segments | Terminalling Services Segment | Related party | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Revenues | 0 | 0 | 0 | 0 |
Fleet services | Operating Segments | Fleet Services Segment | Related party | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Revenues | 86 | 299 | 171 | 598 |
Fleet services | Corporate | Related party | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Revenues | 0 | 0 | 0 | 0 |
Freight and other reimbursables | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Revenues | 0 | 163 | 190 | 260 |
Operating costs | ||||
Operating costs | 2 | 163 | 307 | 260 |
Freight and other reimbursables | Related party | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Revenues | 2 | 0 | 117 | 0 |
Freight and other reimbursables | Operating Segments | Terminalling Services Segment | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Revenues | 0 | 163 | 190 | 260 |
Operating costs | ||||
Operating costs | 0 | 163 | 305 | 260 |
Freight and other reimbursables | Operating Segments | Terminalling Services Segment | Related party | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Revenues | 0 | 0 | 115 | 0 |
Freight and other reimbursables | Operating Segments | Fleet Services Segment | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating costs | ||||
Operating costs | 2 | 0 | 2 | 0 |
Freight and other reimbursables | Operating Segments | Fleet Services Segment | Related party | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Revenues | 2 | 0 | 2 | 0 |
Freight and other reimbursables | Corporate | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating costs | ||||
Operating costs | 0 | 0 | 0 | 0 |
Freight and other reimbursables | Corporate | Related party | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Revenues | 0 | 0 | 0 | 0 |
Subcontracted rail services | ||||
Operating costs | ||||
Operating costs | 2,323 | 3,604 | 5,608 | 7,595 |
Subcontracted rail services | Operating Segments | Terminalling Services Segment | ||||
Operating costs | ||||
Operating costs | 2,323 | 3,604 | 5,608 | 7,595 |
Subcontracted rail services | Operating Segments | Fleet Services Segment | ||||
Operating costs | ||||
Operating costs | 0 | 0 | 0 | 0 |
Subcontracted rail services | Corporate | ||||
Operating costs | ||||
Operating costs | 0 | 0 | 0 | 0 |
Pipeline fees | ||||
Operating costs | ||||
Operating costs | 5,834 | 8,389 | 11,307 | 16,890 |
Pipeline fees | Operating Segments | Terminalling Services Segment | ||||
Operating costs | ||||
Operating costs | 5,834 | 8,389 | 11,307 | 16,890 |
Pipeline fees | Operating Segments | Fleet Services Segment | ||||
Operating costs | ||||
Operating costs | 0 | 0 | 0 | 0 |
Pipeline fees | Corporate | ||||
Operating costs | ||||
Operating costs | $ 0 | $ 0 | $ 0 | $ 0 |
SEGMENT REPORTING - Reconciliat
SEGMENT REPORTING - Reconciliation of Adjusted EBITDA (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Net income | $ 4,635 | $ 3,805 | $ 6,610 | $ 11,278 |
Depreciation and amortization | 1,723 | 5,765 | 3,629 | 11,604 |
Provision for (benefit from) income taxes | 96 | (21) | (176) | 459 |
Foreign currency transaction loss | 48 | 143 | 102 | 1,790 |
Loss associated with disposal of assets | 0 | 3 | ||
Operating Segments | Terminalling Services Segment | ||||
Segment Reporting Information [Line Items] | ||||
Net income | 7,663 | 10,677 | 14,883 | 17,205 |
Interest expense (income), net | (52) | (1) | (83) | 115 |
Depreciation and amortization | 1,723 | 5,765 | 3,629 | 11,604 |
Provision for (benefit from) income taxes | 124 | (5) | (154) | 411 |
Foreign currency transaction loss | 20 | 41 | 43 | 1,739 |
Loss associated with disposal of assets | 0 | 3 | 0 | 3 |
Non-cash deferred amounts | (1,651) | (329) | (3,302) | (1,886) |
Segment adjusted EBITDA attributable to Hardisty South entities prior to acquisition | 0 | 0 | 0 | (258) |
Segment Adjusted EBITDA | 7,827 | 16,151 | 15,016 | 28,933 |
Operating Segments | Fleet Services Segment | ||||
Segment Reporting Information [Line Items] | ||||
Net income | 79 | 224 | 124 | 321 |
Interest expense (income), net | 0 | (2) | 0 | (2) |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Provision for (benefit from) income taxes | (28) | (16) | (22) | 48 |
Foreign currency transaction loss | 4 | 1 | 4 | 1 |
Segment Adjusted EBITDA | $ 55 | $ 207 | $ 106 | $ 368 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) - Interest Rate Swap | 1 Months Ended |
Oct. 31, 2022 USD ($) | |
Derivative [Line Items] | |
Derivative, term of contract | 5 years |
Notional amount | $ 175,000,000 |
Derivative, fixed interest rate | 3.956% |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Derivative Positions Included in the Consolidated Balance Sheets at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Fair Value | $ 154 | $ (2,139) |
Other current assets | ||
Derivative [Line Items] | ||
Fair Value | 2,383 | 1,448 |
Other non-current liabilities | ||
Derivative [Line Items] | ||
Fair Value | $ (2,229) | $ (3,587) |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Gain (Loss) on Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Gain associated with derivative instruments | $ (4,755) | $ (812) | $ (2,905) | $ (6,896) |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS - Summary of Fair Values of Outstanding Foreign Currency Options (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 | Oct. 31, 2022 |
Derivative [Line Items] | |||
Fair Value | $ 154,000 | $ (2,139,000) | |
Interest Rate Swap | |||
Derivative [Line Items] | |||
Notional | $ 175,000,000 | ||
Interest Rate Parameters | 3.956% |
PARTNERS' CAPITAL (Details)
PARTNERS' CAPITAL (Details) - Limited Partner - LTIP - First vesting tranche | 6 Months Ended |
Jun. 30, 2023 shares | |
Common units | |
Limited Partners' Capital Account [Line Items] | |
Conversion of units (in shares) | 377,420 |
Phantom share units (PSUs) | |
Limited Partners' Capital Account [Line Items] | |
Shares vested (in shares) | 566,856 |
Units retained (in shares) | 189,436 |
UNIT BASED COMPENSATION - Narra
UNIT BASED COMPENSATION - Narrative (Details) - Phantom share units (PSUs) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 USD ($) shares | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) shares | Jun. 30, 2022 USD ($) shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 4 years | |||
Allocated share-based compensation expense | $ | $ 0.9 | $ 1.3 | $ 1.9 | $ 2.5 |
Unit based compensation expense, unrecognized | $ | $ 6.1 | $ 6.1 | ||
Weighted average recognition period | 2 years 5 months 19 days | |||
Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 1 year | |||
LTIP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Approved for grant (in shares) | shares | 714,725 | 625,732 | ||
Share remaining available (in shares) | shares | 3,192,352 | 3,192,352 | ||
Conversion ratio | 1 |
UNIT BASED COMPENSATION - Long-
UNIT BASED COMPENSATION - Long-term Incentive Plan (Details) - LTIP - $ / shares | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Equity-Classified Phantom Units | ||
Weighted-Average Grant Date Fair Value Per Phantom Unit | ||
Grant date average fair value, beginning of period (usd per share) | $ 6.91 | $ 8.21 |
Granted (usd per share) | 3.54 | 5.85 |
Vested (usd per share) | 7.85 | 9.01 |
Forfeited (usd per share) | 5.60 | 5.37 |
Grant date average fair value, end of period (usd per share) | 5.02 | 6.91 |
Phantom Share Units (PSU) Liability Classified | ||
Weighted-Average Grant Date Fair Value Per Phantom Unit | ||
Grant date average fair value, beginning of period (usd per share) | 6.27 | 7.26 |
Granted (usd per share) | 3.54 | 5.85 |
Vested (usd per share) | 5.67 | 4.82 |
Grant date average fair value, end of period (usd per share) | $ 4.93 | $ 6.92 |
Director and Independent Consultant Phantom Units | Equity-Classified Phantom Units | ||
Number of units | ||
Phantom Units awards, beginning of period (in shares) | 39,408 | 26,272 |
Granted (in shares) | 39,408 | 39,408 |
Vested (in shares) | (39,408) | (26,272) |
Forfeited (in shares) | 0 | 0 |
Phantom Units awards, end of period (in shares) | 39,408 | 39,408 |
Director and Independent Consultant Phantom Units | Phantom Share Units (PSU) Liability Classified | ||
Number of units | ||
Phantom Units awards, beginning of period (in shares) | 13,136 | 13,136 |
Granted (in shares) | 13,136 | 13,136 |
Vested (in shares) | (13,136) | (13,136) |
Phantom Units awards, end of period (in shares) | 13,136 | 13,136 |
Employee Phantom Units | Equity-Classified Phantom Units | ||
Number of units | ||
Phantom Units awards, beginning of period (in shares) | 1,328,964 | 1,317,493 |
Granted (in shares) | 616,758 | 536,729 |
Vested (in shares) | (527,448) | (519,342) |
Forfeited (in shares) | (11,925) | (941) |
Phantom Units awards, end of period (in shares) | 1,406,349 | 1,333,939 |
Employee Phantom Units | Phantom Share Units (PSU) Liability Classified | ||
Number of units | ||
Phantom Units awards, beginning of period (in shares) | 56,847 | 63,730 |
Granted (in shares) | 45,423 | 36,459 |
Vested (in shares) | (3,022) | 0 |
Phantom Units awards, end of period (in shares) | 99,248 | 100,189 |
UNIT BASED COMPENSATION - Phant
UNIT BASED COMPENSATION - Phantom Units Pursuant to Associated DERs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Distribution Equivalent Rights (DERs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-classified phantom units | $ 0 | $ 167 | $ 169 | $ 330 |
Liability-classified Phantom Units | 0 | 14 | 9 | 23 |
Total | 0 | 181 | 178 | 353 |
Equity-Classified Phantom Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation, forfeited | $ 7 | $ 0 | $ 8 | $ 0 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION - Schedule of Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Lessee, Lease, Description [Line Items] | ||||||
Cash paid for income taxes, net | $ 1,196 | $ 680 | ||||
Cash paid for interest | 8,406 | 2,360 | ||||
Cash paid for operating leases | 587 | 3,576 | ||||
CARES act, net effect of tax refunds | $ 11 | $ 84 | ||||
Property and equipment financed through accounts payable and accrued expenses | (302) | (1,941) | ||||
Accrued reimbursement of property and equipment | 12 | 0 | ||||
Operating lease right-of-use assets | 1,578 | 1,578 | $ 1,508 | |||
General Partner | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Non-cash contribution to Hardisty South entities from Sponsor prior to acquisition | $ 18,200 | |||||
New Or Extended Lease Agreements | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Operating lease right-of-use assets | $ 800 | $ 700 | $ 800 | $ 700 |
SUBSEQUENT EVENTS - Narrative (
SUBSEQUENT EVENTS - Narrative (Details) | Aug. 08, 2023 |
Subsequent Event | |
Subsequent Event [Line Items] | |
Credit Agreement, percentage of cash proceeds from asset sales used to repay borrowings | 100% |