BP Midstream Partners (BPMP) 10-Q 6 Dec 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Dec. 06, 2017
Entity Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Trading Symbol	BPMP
Entity Registrant Name	BP Midstream Partners LP
Entity Central Index Key	1,708,301
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Common Class A
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		52,375,535
Subordinated Units
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		52,375,535

UNAUDITED CONDENSED COMBINED BA

UNAUDITED CONDENSED COMBINED BALANCE SHEETS - USD ($)	Sep. 30, 2017	May 31, 2017	Dec. 31, 2016
Current assets
Total assets	$ 0	$ 0
Partner's capital
Limited partner's capital	100	100
Less: Note receivable from limited partner	(100)	(100)
Total partner's capital	0	$ 0
Predecessor
Current assets
Accounts receivable - third parties	101,000		$ 342,000
Accounts receivable - related parties	17,839,000		13,477,000
Allowance oil receivable (Note 3)	3,266,000		2,532,000
Prepaid expenses and other current assets	44,000		0
Total current assets	21,250,000		16,351,000
Property, plant and equipment, net (Note 4)	70,013,000		71,235,000
Total assets	91,263,000		87,586,000
Current liabilities
Accounts payable - third parties	1,200,000		1,048,000
Accounts payable - related parties	232,000		146,000
Accrued liabilities (Note 5)	2,723,000		4,067,000
Total current liabilities	4,155,000		5,261,000
Long-term liabilities
Long-term portion of environmental remediation obligation	2,720,000		2,362,000
Deferred tax liabilities	6,242,000		5,859,000
Other long-term liabilities	0		162,000
Total noncurrent liabilities	8,962,000		8,383,000
Total liabilities	13,117,000		13,644,000
Commitments and contingencies (Note 9)
NET PARENT INVESTMENT
Net parent investment	78,146,000		73,942,000
Total liabilities and net parent investment	$ 91,263,000		$ 87,586,000

UNAUDITED CONDENSED COMBINED ST

UNAUDITED CONDENSED COMBINED STATEMENTS OF OPERATIONS - Predecessor - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenue
Third parties	$ 238	$ 1,249	$ 1,712	$ 3,512
Related parties	26,778	22,092	78,832	78,025
Total revenue	27,016	23,341	80,544	81,537
Costs and expenses
Operating expenses – third parties	3,062	1,902	6,380	5,569
Operating expenses – related parties	1,945	1,480	5,812	4,550
Maintenance expenses – third parties	1,362	991	2,651	1,709
Maintenance expenses – related parties	65	103	257	330
Gain from disposition of property, plant and equipment, net	0	0	(6)	0
General and administrative – third parties	12	0	56	7
General and administrative – related parties	1,210	1,730	3,571	5,397
Depreciation	675	649	2,007	1,917
Property and other taxes	113	110	267	255
Total costs and expenses	8,444	6,965	20,995	19,734
Operating income	18,572	16,376	59,549	61,803
Other income (loss)	380	(246)	(108)	285
Income tax expense	7,403	6,309	23,219	24,284
Net income	$ 11,549	$ 9,821	$ 36,222	$ 37,804

UNAUDITED CONDENSED COMBINED S4

UNAUDITED CONDENSED COMBINED STATEMENTS OF CHANGES IN NET PARENT INVESTMENT - Predecessor - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, beginning of the period	$ 73,942	$ 74,258
Net income	36,222	37,804
Net transfers to Parent	(32,018)	(39,113)
Balance, end of the period	$ 78,146	$ 72,949

UNAUDITED CONDENSED COMBINED S5

UNAUDITED CONDENSED COMBINED STATEMENTS OF CASH FLOWS - Predecessor - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities
Net income	$ 36,222	$ 37,804
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	2,007	1,917
Deferred income taxes	383	797
Stock-based compensation	188	177
Loss (Gain) due to changes in fair value of allowance oil receivable	108	(285)
Gain from disposition of property, plant and equipment, net	(6)	0
Changes in operating assets and liabilities
Accounts receivable - third parties	241	62
Accounts receivable - related parties	(4,362)	1,307
Allowance oil receivable	(842)	204
Prepaid expenses and other current assets	(44)	0
Accounts payable - third parties	152	99
Accounts payable - related parties	86	(36)
Accrued liabilities	(66)	(77)
Long-term portion of environmental remediation obligation	358	(340)
Other long-term liabilities	(162)	0
Net cash provided by operating activities	34,263	41,629
Cash flows from investing activities
Capital expenditures	(2,063)	(2,339)
Proceeds from disposition of property, plant and equipment, net	6	0
Net cash used in investing activities	(2,057)	(2,339)
Cash flows from financing activities
Net transfers to Parent	(32,206)	(39,290)
Net cash provided by financing activities	(32,206)	(39,290)
Net change in cash and cash equivalents	0	0
Cash and cash equivalents at beginning of the period	0	0
Cash and cash equivalents at end of the period	0	0
Non-cash investing transactions
Change in accrued capital expenditures	$ (1,278)	$ (494)

Description of the Business

Description of the Business	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of the Business	Description of the Business Organization BP Midstream Partners LP (either individually or together with its subsidiaries, as context requires, the “Partnership”) is a Delaware limited partnership formed on May 22, 2017 by BP Pipelines (North America) Inc. (“BPPLNA”), an indirect wholly owned subsidiary of BP p.l.c. (“BP”), to own, operate, develop and acquire pipelines and other midstream assets. BP Midstream Partners Holdings LLC (“BP Holdco”), a wholly owned subsidiary of BPPLNA, contributed $100 in the form of a note receivable to the Partnership on May 22, 2017. There have been no other transactions involving the Partnership as of September 30, 2017 .

Business and Basis of Presentat

Business and Basis of Presentation	9 Months Ended
	Sep. 30, 2017
Description Of Business And Basis Of Presentation [Line Items]
Business and Basis of Presentation	Description of the Business Organization BP Midstream Partners LP (either individually or together with its subsidiaries, as context requires, the “Partnership”) is a Delaware limited partnership formed on May 22, 2017 by BP Pipelines (North America) Inc. (“BPPLNA”), an indirect wholly owned subsidiary of BP p.l.c. (“BP”), to own, operate, develop and acquire pipelines and other midstream assets. BP Midstream Partners Holdings LLC (“BP Holdco”), a wholly owned subsidiary of BPPLNA, contributed $100 in the form of a note receivable to the Partnership on May 22, 2017. There have been no other transactions involving the Partnership as of September 30, 2017 .
Predecessor
Description Of Business And Basis Of Presentation [Line Items]
Business and Basis of Presentation	Business and Basis of Presentation Business BP Midstream Partners LP (either individually or together with its subsidiaries, as the context requires, the “Partnership”) is a Delaware limited partnership formed on May 22, 2017 by BP Pipelines (North America) Inc. (“BPPLNA”), an indirect wholly owned subsidiary of BP p.l.c. (“BP”), a “foreign private issuer” within the meaning of the Securities Exchange Act of 1934, as amended, to own, operate, develop and acquire pipelines and other midstream assets. On October 30, 2017 the Partnership completed its initial public offering (“IPO”) of common units representing limited partner interests. See Note 2 - Initial Public Offering for the discussion of the IPO. BP Midstream Partners LP Predecessor consists of three pipeline businesses (as described in more detail below). Unless otherwise stated or the context otherwise indicates, all references to “we,” “our,” “us,” “Predecessor Assets,” “Predecessor,” or similar expressions for time periods prior to the IPO refer to BP Midstream Partners LP Predecessor. For time periods subsequent to the IPO, “we,” “our,” “us,” or similar expressions refer to the legal entity BP Midstream Partners LP. The term “our Parent” refers to BPPLNA, any entity that wholly owns BPPLNA, indirectly or directly, including BP and BP America Inc. (“BPA”), an indirect wholly owned subsidiary of BP, and any entity that is wholly owned by the aforementioned entities, excluding BP Midstream Partners LP Predecessor. Our operations consist of one reportable segment. All of our operations are conducted in the United States, and all our long-lived assets are located in the United States. The Predecessor Assets consist of the following three pipeline businesses: • BP Two Pipeline Company LLC, which owns the BP#2 crude oil pipeline system (“BP2”) comprising 12 miles of pipeline transporting crude oil from Griffith Station, Indiana, to BPA’s refinery in Whiting, Indiana (the “Whiting Refinery”). The BP2 pipeline has a capacity of approximately 475,000 barrels per day. • BP River Rouge Pipeline Company LLC, which owns the Whiting to River Rouge refined products pipeline system (“River Rouge”) comprising 244 miles of pipeline and related assets transporting refined petroleum products from the Whiting Refinery to the refined products terminal at River Rouge, Michigan. The River Rouge pipeline has a capacity of approximately 80,000 barrels per day. • BP D-B Pipeline Company LLC, which owns the Diamondback diluent pipeline system (“Diamondback”) comprising 42 miles of pipeline and related assets transporting diluent from Black Oak Junction, Indiana, to a third-party owned pipeline in Manhattan, Illinois. The Diamondback pipeline has a capacity of approximately 135,000 barrels per day. Certain of BP Midstream Partners LP Predecessor’s businesses are subject to regulation by various authorities including, but not limited to the Federal Energy Regulatory Commission. Regulatory bodies exercise statutory authority over matters such as common carrier tariffs, construction, rates and ratemaking and agreements with customers. Basis of Presentation Our accompanying unaudited condensed combined financial statements have been prepared under the rules and regulations of the Securities and Exchange Commission (“SEC”). These rules and regulations conform to the accounting principles contained in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification, the single source of accounting principles generally accepted in the United States (“U.S. GAAP”). As permitted under the rules and regulations of the SEC, certain information and footnote disclosures normally included in the annual financial statements prepared in conformity with U.S. GAAP have been condensed or omitted from these condensed combined financial statements. These financial statements were derived from the consolidated financial statements and accounting records of our Parent. These financial statements reflect the condensed combined historical results of operations, financial position and cash flows of the Predecessor as if such business had been a separate entity for all periods presented. For ease of reference, these financial statements are referred to as those of the Predecessor Assets. These condensed combined financial statements should be read in conjunction with the combined financial statements and related notes included in the prospectus of the Partnership dated October 25, 2017, as filed with the SEC on October 27, 2017 (the “Prospectus”). These financial statements are presented as if the operations of the Predecessor Assets had been combined for all periods presented. The assets and liabilities in these condensed combined financial statements have been reflected on the historical cost basis, as immediately prior to the closing of the IPO, all of the assets and liabilities presented were transferred to the Partnership within our Parent’s consolidated group in a transaction under common control. All intercompany accounts and transactions within the Predecessor have been eliminated. The accompanying condensed combined statements of operations also include expense allocations for certain functions historically performed by our Parent and not allocated to the Predecessor Assets, including allocations of general corporate expenses related to finance, accounting, treasury, legal, information technology, human resources, shared services, government affairs, insurance, health, safety, security, employee benefits, incentives, severance and environmental functional support. The portion of expenses that are specifically identifiable to the Predecessor Assets are directly recorded to the Predecessor, with the remainder allocated on the basis of headcount, throughput volumes, miles of pipe and other measures. Our management believes the assumptions underlying the financial statements, including the assumptions regarding the allocation of general corporate expenses from our Parent, are reasonable. Nevertheless, the financial statements may not include all of the expenses that would have been incurred, had we been a stand-alone company during the periods presented and may not reflect our financial position, results of operations and cash flows, had we been a stand-alone company during the periods presented. See Note 6 - Related Party Transactions . Prior to the IPO, we did not own or maintain separate bank accounts. Our Parent uses a centralized approach to cash management and historically funded our operating and investing activities as needed within the boundaries of a documented funding agreement. Accordingly, cash held by our Parent at the corporate level was not allocated to us for any of the periods presented. We reflected the cash generated by our operations and expenses paid by our Parent on our behalf as a component of “Net parent investment” on our condensed combined balance sheets, and as a net distribution to our Parent in our condensed combined statements of cash flows. We have also not included any interest income on the net cash transfers to our Parent. The financial statements as of and for the periods ended September 30, 2017 and 2016 , included herein, are unaudited. These financial statements include all known accruals and adjustments necessary, in the opinion of management, for a fair presentation of the results of operations, the condensed combined financial position of the Predecessor Assets and cash flows. Unless otherwise specified, all such adjustments are of a normal and recurring nature. The unaudited results of operations for the interim periods reported are not necessarily indicative of results to be expected for the full year. Summary of Significant Accounting Policies There have been no updates to our accounting policies disclosed in the Prospectus. Please refer to the footnotes to the audited annual combined financial statements included in the Prospectus for a summary of our significant accounting policies. Recent Accounting Pronouncements For additional information on accounting pronouncements issued prior to December 2016, refer to Note 3 - Recent Accounting Pronouncements in the notes to the audited combined financial statements included in the Prospectus. In September 2017, the FASB issued Accounting Standards Update (“ASU”) 2017-13 “Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842).” This ASU delays the mandatory adoption of Topic 606 and Topic 842 for public business entities that otherwise would not meet the definition of a public business entity except for a requirement to include or the inclusion of its financial statements or financial information in another entity’s filing with the SEC. This ASU also revises the guidance related to performance-based incentive fees in Topic 605 and revises the guidance related to leases in Topics 840 and 842. The revisions to the lease guidance eliminate language specific to certain sale-leaseback arrangements, guarantees of lease residual assets and loans made by lessees to owner-lessors. Also included is an amendment to Topic 842 to retain the guidance in Topic 840 covering the impact of changes in tax rates on investments in leveraged leases. This guidance is effective immediately. We do not expect ASU 2017-13 to impact our condensed combined financial statements. However, we together with our Parent are currently evaluating the impact that the adoption of the other provisions under Topic 606 and 842 will have on our condensed combined financial statements and notes to the condensed combined financial statements. In January 2017, the FASB issued ASU 2017-03, “Accounting Changes and Error Corrections (Topic 250).” The amendments to Topic 250 included in this update expand required qualitative disclosures when registrants cannot reasonably estimate the impact that adoption of the ASUs related to revenue (ASU 2014-09), leases (ASU 2016-02) and credit losses (ASU 2016-13) will have on the financial statements. Such qualitative disclosures would include a comparison of the registrant’s new accounting policies, if determined, to current accounting policies, a description of the status of the registrant’s process to implement the new standard and a description of the significant implementation matters yet to be addressed by the registrant. Other than enhancements to the qualitative disclosures regarding future adoption of new ASUs, adoption of the provisions of this standard is not expected to have any impact on our condensed combined financial statements.

Initial Public Offering

Initial Public Offering	9 Months Ended
	Sep. 30, 2017
Equity [Abstract]
Initial Public Offering	Initial Public Offering I nitial Public Offering On October 30, 2017 (the “Completion Date”), the Partnership completed its initial public offering of 42,500,000 common units representing limited partner interests at a price to the public of $18.00 per unit. Subsequent to the closing of the IPO, the underwriters partially exercised their over-allotment option and purchased 5,294,358 additional common units at $18.00 per unit. A total of 47,794,358 common units were issued to the public unitholders in connection with the IPO. A registration statement on Form S-1, as amended through the time of its effectiveness, was filed by the Partnership with the SEC and was declared effective on October 25, 2017. On October 26, 2017, the Partnership's common units began trading on the New York Stock Exchange under the symbol “BPMP.” Immediately prior to the consummation of the IPO on the Completion Date, BPPLNA contributed the following interests to the Partnership: • 100.0% ownership interest in the Predecessor Assets; • 28.5% ownership interest in Mars Oil Pipeline Company LLC; and • 20.0% managing member interest in Mardi Gras Transportation System Company LLC (“Mardi Gras”), pursuant to which the Partnership has the right to vote BPPLNA's and its affiliates’ retained ownership interest in each of Caesar Oil Pipeline Company LLC, Cleopatra Gas Gathering Company LLC, Proteus Oil Pipeline Company LLC and Endymion Oil Pipeline Company LLC (together, the “Mardi Gras Joint Ventures”). In exchange for BPPLNA's contribution of such interests to the Partnership, BPPLNA, through its wholly owned subsidiary, BP Midstream Partners Holdings LLC (“BP Holdco”), and through BP Holdco's wholly owned subsidiary, BP Midstream Partners GP LLC (the “General Partner”), received: • 4,581,177 common units and 52,375,535 subordinated units, representing an aggregate 54.4% limited partner interest; • all of the non-economic general partner interest and our incentive distribution rights; and • a cash distribution of $814.7 million . The Partnership received net proceeds of $814.7 million from the sale of 47,794,358 common units in the IPO, after deducting underwriting discounts and commissions, structuring fees and other offering expenses. The Partnership made a cash distribution of $814.7 million to BPPLNA. Revolving Credit Facility Agreement On October 30, 2017, the Partnership entered into a $600.0 million revolving credit facility agreement (the “credit facility”) with an affiliate of BP. The credit facility provides for certain covenants, including the requirement to maintain a consolidated leverage ratio, which is calculated as total indebtedness to consolidated EBITDA (as defined in the credit facility), not to exceed 5.0 to 1.0 , subject to a temporary increase in such ratio to 5.5 to 1.0 in connection with certain material acquisitions. In addition, the limited liability company agreement of the Partnership's General Partner requires the approval of BP Holdco prior to the incurrence of any indebtedness that would cause the Partnership's leverage ratio to exceed 4.5 to 1.0 . The credit facility also contains customary events of default, such as (i) nonpayment of principal when due, (ii) nonpayment of interest, fees or other amounts, (iii) breach of covenants, (iv) misrepresentation, (v) cross-payment default and cross-acceleration (in each case, to indebtedness in excess of $75.0 million ) and (vi) insolvency. Additionally, the Partnership's revolving credit facility limits its ability to, among other things: (i) incur or guarantee additional debt, (ii) redeem or repurchase units or make distributions under certain circumstances; and (iii) incur certain liens or permit them to exist. Indebtedness under this facility bears interest at the 3 -month LIBOR plus 0.85% . This facility includes customary fees, including a commitment fee of 0.10% and a utilization fee of 0.20% . As of September 30, 2017 , there were no borrowings outstanding under the credit facility. Omnibus Agreement In connection with the IPO, the Partnership entered into an omnibus agreement with BPPLNA and certain of its affiliates, including the General Partner. This agreement addresses, among other things, (i) the Partnership's obligation to pay an annual fee, initially $13.3 million , for general and administrative services provided by BPPLNA and its affiliates, (ii) the Partnership's obligation to reimburse BPPLNA for personnel and other costs related to the direct operation, management and maintenance of the assets and (iii) the Partnership's obligation to reimburse BPPLNA for services and certain direct or allocated costs and expenses incurred by BPPLNA or its affiliates on behalf of the Partnership. Pursuant to the omnibus agreement, BPPLNA will indemnify the Partnership and fund all of the costs of required remedial action for its known historical and legacy spills and releases and other environmental and litigation claims identified in the omnibus agreement. BPPLNA will also indemnify the Partnership with respect to subsidiaries for which it is the operator for certain title defects and for failures to obtain certain consents and permits necessary to conduct its business for one year following the closing of the IPO. The omnibus agreement also addresses the Partnership's right of first offer to acquire BPPLNA's retained ownership interest in Mardi Gras and all of BPPLNA's interests in midstream pipeline systems and assets related thereto in the contiguous United States and offshore Gulf of Mexico that are owned by BPPLNA at the closing of the IPO. Further, the omnibus agreement addresses the granting of a license from BPA to the Partnership with respect to use of certain BP trademarks and tradename. Throughput and Deficiency Agreements In connection with the IPO, the Partnership entered into throughput and deficiency agreements with BP Products North America Inc. (“BP Products”), an indirect wholly owned subsidiary of BP. These agreements include minimum volume commitments that initially support substantially all of the Partnership's aggregate revenue on BP2, River Rouge and Diamondback. Under these fee-based agreements, we will provide transportation services to BP Products, and BP Products will commit to pay the Partnership for minimum monthly volumes of crude oil, refined products and diluent, regardless of whether such volumes are physically shipped by BP Products through the Partnership pipelines during the term of the agreements. These agreements became effective on October 30, 2017, with an initial term ending December 31, 2020. Long-Term Incentive Plan Prior to the closing of the IPO, we adopted BP Midstream Partners LP 2017 Long Term Incentive Plan (the “Plan”). Awards under the Plan are available for eligible officers, directors, employees and consultants of the General Partner and its affiliates, who perform services for the Partnership. The Plan provides the Partnership with the flexibility to grant unit options, unit appreciation rights, restricted units, phantom units, unit awards, cash awards, performance awards, distribution equivalent rights, substitute awards and other unit-based awards. The maximum aggregate number of common units that may be issued pursuant to any and all awards under the Plan shall not exceed 5% of our common and subordinated units outstanding upon the completion of the IPO, subject to adjustment due to (i) a subdivision or consolidation of the common units (by reclassification, split or reverse split or otherwise), (ii) a recapitalization, reclassification, or other change in our capital structure or (iii) any other reorganization, merger, combination, exchange, or other relevant change in capitalization of our equity, as provided under the Plan. Following the closing of the IPO, we granted a total number of 8,468 phantom units with an aggregate value on the date of grant of approximately $150 to our independent directors. These phantom units will vest on the first anniversary of the date of grant but will not be settled until the second anniversary of the vesting date.

Allowance Oil

Allowance Oil	9 Months Ended
	Sep. 30, 2017
Predecessor
Oil and Gas In Process Activities [Line Items]
Allowance Oil	Allowance Oil Our tariff for crude oil transportation at BP2 includes a fixed loss allowance (“FLA”). An FLA factor per barrel, a fixed percentage, is a separate fee under the applicable crude oil tariff to cover evaporation and other loss in transit. In the three and nine months ended September 30, 2017 and 2016 , all of our revenue at BP2 was generated from services to our Parent. As crude oil is transported, we earn additional income that equals the applicable FLA factor multiplied by the volume transported by our Parent measured at the receipt location. We do not take physical possession of the allowance oil as a result of our services, but record the value of the volumes accumulated as a receivable from our Parent. We recognize the FLA income in Revenue - related parties in the condensed combined statements of operations during the periods when commodities are transported. The amount of revenue recognized is a product of the quantity transported, the applicable FLA factor and the estimated settlement price during the month the product is transported. We cash settle allowance oil receivable with our Parent in the subsequent periods after the transportation service has been performed. The settlement price is a product of the quantity settled and the summation of the calendar-month average price of West Texas Intermediate (“WTI”) on the New York Mercantile Exchange and a differential provided by a trading company wholly owned by our Parent. The differential represents the difference in market price between WTI and the type of allowance oil to be settled and the difference in market price between the current month and the prior month. We measure the embedded derivative along with the allowance oil receivable in their entirety at fair value because the economic characteristics and risks of the embedded derivative are clearly and closely related to the economic characteristics and risks of the host arrangement. We recognize the changes in fair value in earnings in Other income (loss) in the condensed combined statements of operations. The embedded derivative is not designated as a hedging instrument. Refer to Note 7 - Fair Value Measurements for further discussion. As of September 30, 2017 and December 31, 2016 , allowance oil receivable, including the embedded derivative, was $3,266 and $2,532 , respectively, on the condensed combined balance sheets. In the three and nine months ended September 30, 2017 , we recognized income of $2,243 and $6,240 , respectively, and a gain/(loss) due to changes in fair value of $380 and $(108) , respectively, related to the FLA arrangement with our Parent. In the three and nine months ended September 30, 2016 , we recognized income of $1,333 and $4,048 , respectively, and a (loss)/gain due to changes in fair value of $(246) and $285 , respectively, related to the FLA arrangement with our Parent.

Property, Plant, and Equipment

Property, Plant, and Equipment	9 Months Ended
	Sep. 30, 2017
Predecessor
Property, Plant and Equipment [Line Items]
Property, Plant, and Equipment	Property, Plant and Equipment Our property, plant and equipment is recorded at its historical cost of construction or, upon acquisition, at either the fair value of the assets acquired or the cost to the entity that placed the asset in service. Property, plant and equipment consisted of the following: Depreciable September 30, 2017 December 31, 2016 Land — $ 155 $ 155 Rights-of-way — 1,380 1,380 Building and improvements 16 - 40 years 12,032 12,032 Pipeline and equipment 10 - 30 years 91,704 89,135 Other 4 - 23 years 509 509 Construction in progress — 308 2,082 106,088 105,293 Less: Accumulated depreciation (36,075 ) (34,058 ) Property, plant and equipment, net $ 70,013 $ 71,235 In the three months ended September 30, 2017 , we did not dispose any property, plant and equipment. In the nine months ended September 30, 2017 , we recognized a gain of $6 from disposition of property, plant and equipment. In the three and nine months ended September 30, 2016 , we did not dispose of any property, plant and equipment. We determined that there were no impairments on our property, plant and equipment in the three and nine months ended September 30, 2017 or 2016 .

Accrued Liabilities

Accrued Liabilities	9 Months Ended
	Sep. 30, 2017
Predecessor
Payables And Accruals [Line Items]
Accrued Liabilities	Accrued Liabilities Accrued liabilities consist of the following: September 30, 2017 December 31, 2016 Current portion of environmental remediation obligation $ 1,645 $ 1,310 Accrued non-capital project expenditures 607 935 Accrued property taxes 165 252 Accrued employee payroll and incentives 81 109 Accrued capital project expenditures 73 1,351 Other accrued liabilities 152 110 Accrued liabilities $ 2,723 $ 4,067

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2017
Predecessor
Related Party Transaction [Line Items]
Related Party Transactions	Related Party Transactions Related party transactions include transactions with our Parent and our Parent’s affiliates including those entities, in which our Parent has an ownership interest but does not have control. In addition to the fixed loss allowance arrangement discussed in Note 3 - Allowance Oil , we have entered into the following transactions with our related parties: Cash Management Program We participate in our Parent’s centralized cash management and funding system. Our working capital and capital expenditure requirements have historically been part of the corporate-wide cash management program for our Parent. As part of this program, our Parent maintained all cash generated by our operations, and cash required to meet our operating and investing needs was provided by our Parent as necessary within the boundaries of a documented funding agreement. Net cash generated from or used by our operations is reflected as a component of “Net parent investment” on the accompanying condensed combined balance sheets and as “Net transfers to Parent” on the accompanying condensed combined statements of cash flows. No interest income has been recognized on net cash kept by our Parent since, historically, we have not charged interest on intercompany balances. Related Party Revenue and Expense We provide crude oil, refined products and diluent transportation services to related parties and generate revenue through published tariffs. Our sales revenue from related parties was $26,778 and $78,832 for the three and nine months ended September 30, 2017 , respectively, and $22,092 and $78,025 for the three and nine months ended September 30, 2016 , respectively. During the three and nine months ended September 30, 2017, we did not have long-term fee-based transportation agreements in place for volumes transported on any of our assets with related parties, other than a long-term transportation agreement at Diamondback which did not have a minimum volume commitment prior to July 1, 2017. During the three months ended September 30, 2017 , we entered into a throughput and deficiency contract with BP Products for transporting diluent on the Diamondback pipeline under a joint tariff agreement with a third-party carrier. The throughput and deficiency contract contains a minimum volume requirement on BP Products for each of the twelve-month periods commencing on the effective date of July 1, 2017 and ending on June 30, 2020. In return, BP Products will receive a discounted incentive rate for each unit of diluent transported. During each of the twelve-month periods, BP Products will commit to pay us the discounted incentive rate for the minimum volumes, regardless of whether such volumes are physically shipped by BP Products through Diamondback. All employees performing services on behalf of our operations are employees of our Parent. Personnel and operating costs incurred by our Parent on our behalf were charged to us and included in either General and administrative expenses or Operating expenses in the accompanying condensed combined statements of operations, depending on the nature of the employee’s role in our operations. Our Parent also performs certain general corporate functions for us related to finance, accounting, treasury, legal, information technology, human resources, shared services, government affairs, insurance, health, safety, security, employee benefits, incentives, severance and environmental functional support. During the three and nine months ended September 30, 2017 and 2016 , we were allocated operating and indirect general corporate expenses incurred by our Parent, which were included in Operating expenses - related parties and General and administrative - related parties in the accompanying condensed combined statements of operations. We are covered by the insurance policies of our Parent. We were allocated insurance expense of $925 and $2,703 for the three and nine months ended September 30, 2017 , respectively, and $704 and $2,111 for the three and nine months ended September 30, 2016 , respectively. Insurance expense was included within Operating expenses - third parties in the accompanying condensed combined statements of operations. During three and nine months ended September 30, 2017 and 2016 , we were allocated the following amounts from our Parent, including the insurance expense discussed above, as well as the pension and retirement savings plans and share-based compensation discussed below: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Operating expenses - related parties $ 1,762 $ 1,458 $ 5,233 $ 4,460 General and administrative - related parties 1,210 1,730 3,571 5,397 Total allocated operating and general corporate costs $ 2,972 $ 3,188 $ 8,804 $ 9,857 These allocated operating and general corporate costs related primarily to the wages and benefits of our Parent’s employees that support our operations. Expenses incurred by our Parent on our behalf have been allocated to us on the basis of direct usage when identifiable. Where costs incurred by our Parent could not be determined to relate to us by specific identification, these costs were primarily allocated to us on the basis of headcount, throughput volumes, miles of pipe and other measures. The expense allocations have been determined on a basis that both we and our Parent consider to be a reasonable reflection of the utilization of services provided or the benefit received by us during the periods presented. The allocations may not, however, fully reflect the expenses we would have incurred as a separate, publicly traded company for the periods presented. The following table shows related party expenses directly incurred by us that were included in the accompanying condensed combined statements of operations: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Operating expenses - related parties $ 183 $ 22 $ 579 $ 90 Maintenance expenses - related parties 65 103 257 330 Total directly related party expenses $ 248 $ 125 $ 836 $ 420 Pension and Retirement Savings Plans Employees who directly or indirectly support our operations participate in the pension, post-retirement health insurance, and defined contribution benefit plans sponsored by our Parent and include other subsidiaries of our Parent. Pension and defined contribution benefit plan expenses allocated to us were included in General and administrative - related parties or Operating expenses - related parties in the accompanying condensed combined statements of operations, depending on the nature of the employee’s role in our operations. Our pension and post-retirement health insurance costs were $13 and $43 within Operating expenses for the three and nine months ended September 30, 2017 , respectively, and $41 and $142 within General and administrative for the same periods, respectively. Such costs were $11 and $36 within Operating expenses for the three and nine months ended September 30, 2016 , respectively, and $49 and $151 within General and administrative for the same periods, respectively. Our defined contribution benefit plan costs were $19 and $34 within Operating expenses for the three and nine months ended September 30, 2017 , respectively, and $59 and $112 within General and administrative for the same periods, respectively. Such costs were $8 and $26 within Operating expenses for the three and nine months ended September 30, 2016 , respectively, and $35 and $107 within General and administrative for the same periods, respectively. Share-based Compensation Our Parent operates share option plans and equity-settled employee share plans. These plans typically have a three-year performance or restricted period during which the units accrue net notional dividends, which are treated as having been reinvested. Leaving employment will normally preclude the conversion of units into shares, but special arrangements apply for participants that leave for qualifying reasons. Certain Parent employees supporting our operations were historically granted these types of awards. These share-based compensation costs have been allocated to us as part of the cost allocations from our Parent. These costs were $84 and $188 for the three and nine months ended September 30, 2017 , respectively, and $60 and $177 for the three and nine months ended September 30, 2016 , respectively. Share-based compensation expense is included in General and administrative - related parties in the accompanying condensed combined statements of operations.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2017
Predecessor
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurements	Fair Value Measurements As discussed in Note 3 - Allowance Oil , we record allowance oil receivable and the embedded derivative in their entirety at fair value in the condensed combined balance sheets. We record the changes in the fair value in Other income (loss) in the condensed combined statements of operations. The fair value is measured based on the settlement price at the end of the period, representing the amount that we would have received if all allowance oil receivables on hand were settled with our Parent at that time. At September 30, 2017 and December 31, 2016 , allowance oil receivable balances, including the embedded derivative, were classified as level 2 within the fair value hierarchy in the following table: September 30, 2017 December 31, 2016 Recurring fair value measures Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Allowance oil receivable — $ 3,266 — $ 3,266 — $ 2,532 — $ 2,532 There were no transfers into, or out of, the three levels of the fair value hierarchy for the three and nine months ended September 30, 2017 and 2016 , respectively.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2017
Predecessor
Income Taxes [Line Items]
Income Taxes	Income Taxes BP Midstream Partners LP Predecessor was not a standalone entity for income tax purposes and was included as part of BPA consolidated federal income tax returns. Our provision for income taxes was prepared on a separate return basis with consideration to the tax laws and rates applicable in the jurisdictions in which we operated and earned income. BPA and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various states. These tax returns are subject to examination and possible challenge by the taxing authorities. Positions challenged by the taxing authorities may be settled or appealed by BPA. As a result, income tax uncertainties are recognized in BP Midstream Partners LP Predecessor’s combined financial statements in accordance with accounting for income taxes, when applicable. It is reasonably possible that changes to BP Midstream Partners LP Predecessor global unrecognized tax benefits could be significant; however, due to the uncertainty regarding the timing of completion of audits and possible outcomes, a current estimate of the range of such changes that may occur within the next twelve months cannot be made. BP Midstream Partners LP Predecessor recorded income tax expense of $7,403 and $23,219 for the three and nine months ended September 30, 2017 , respectively, and $6,309 and $24,284 for the three and nine months ended September 30, 2016 , respectively. There are no uncertain tax positions recorded on BP Midstream Partners LP Predecessor at the end of the periods presented. BP Midstream Partners LP will be a pass-through entity for federal income tax purposes and will not be subject to federal income taxes on future period financial results.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2017
Predecessor
Loss Contingencies [Line Items]
Commitments and Contingencies	Commitments and Contingencies Legal Proceedings Our Parent and certain affiliates are named defendants in lawsuits and governmental proceedings that arise in the ordinary course of our business. For each of our outstanding legal matters, we evaluate the merits of the case, our exposure to the matter, possible legal or settlement strategies and the likelihood of an unfavorable outcome. While there are still uncertainties related to the ultimate costs we may incur, based upon our evaluation and experience to date, we do not expect that the ultimate resolution of these matters will have a material adverse effect on our financial position, operating results, or cash flows. Environmental Matters We are subject to federal, state and local environmental laws and regulations. We record provisions for environmental liabilities based on management’s best estimates, using all information that is available at the time. In making environmental liability estimations, we consider the material effect of environmental compliance, pending legal actions against us and potential third-party liability claims. Often, as the remediation evaluation and effort progresses, additional information is obtained, requiring revisions to estimated costs. These revisions are reflected in our income in the year in which they are probable and reasonably estimable. During the third quarter of 2017 and 2016 , we increased our estimated provision for total remediation costs, which resulted in recognition of expenses of $1,006 for the three and nine months ended September 30, 2017 , and $128 for the three and nine months ended September 30, 2016 . We accrued $4,365 and $3,672 for environmental liabilities at September 30, 2017 and December 31, 2016 , respectively. In 1964, River Rouge experienced a release from a flange failure. Extensive soil and groundwater assessment and remediation activities have been conducted under oversight from Michigan Department of Environmental Quality (“MDEQ”). At September 30, 2017 and December 31, 2016 , we accrued $2,515 and $1,700 , respectively, for environmental liabilities associated with this incident. Remediation effort for this incident is likely to continue for up to 20 years. During the third quarter of 2017 and 2016 , we increased our estimated provision for the remediation costs related to this incident, which resulted in recognition of expenses of $989 for the three and nine months ended September 30, 2017 and $28 for the three and nine months ended September 30, 2016 . In 2010, River Rouge experienced a release of approximately 90,000 gallons of gasoline. Extensive soil and groundwater assessment and remediation activities have been conducted under oversight from MDEQ. At September 30, 2017 and December 31, 2016 , we accrued $1,630 and $1,620 , respectively, for environmental liabilities associated with this incident. Remediation effort for this incident is likely to continue for up to 10 years. During the third quarter of 2017 and 2016 , we increased our estimated provision for the remediation costs related to this incident, which resulted in recognition of expenses of $99 for the three and nine months ended September 30, 2017 and $186 for the three and nine months ended September 30, 2016 . There were several other environmental issues, for which we have accrued $220 and $352 in environmental liabilities at September 30, 2017 and December 31, 2016 , respectively.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On October 30, 2017, the Partnership completed its initial public offering (the “IPO”) of 42,500,000 common units representing limited partner interests at a price to the public of $18.00 per unit. Subsequent to the closing of the IPO, the underwriters partially exercised their over-allotment option and purchased 5,294,358 additional common units at $18.00 per unit. A total of 47,794,358 common units were issued to the public unitholders in connection with the IPO. A registration statement on Form S-1, as amended through the time of its effectiveness, was filed by the Partnership with the Securities and Exchange Commission (the “SEC”) and was declared effective on October 25, 2017. On October 26, 2017, the Partnership's common units began trading on the New York Stock Exchange under the symbol “BPMP”. In connection with the closing of the IPO, BPPLNA contributed to the Partnership a 100.0% ownership interest in the Predecessor Assets, 28.5% ownership interest in Mars Oil Pipeline Company LLC; and a 20.0% managing member interest in Mardi Gras Transportation System Company LLC. See Note 1, “Business and Basis of Presentation” to the condensed combined financial statements of BP Midstream Partners LP Predecessor. On October 30, 2017, the Partnership entered into a $600.0 million revolving credit facility agreement (the “credit facility”) with an affiliate of BP. The credit facility provides for certain covenants, including the requirement to maintain a consolidated leverage ratio, which is calculated as total indebtedness to consolidated EBITDA (as defined in the credit facility), not to exceed 5.0 to 1.0 , subject to a temporary increase in such ratio to 5.5 to 1.0 in connection with certain material acquisitions. In addition, the limited liability company agreement of BP Midstream Partners GP LLC (the “General Partner”) requires the approval of BP Holdco prior to the incurrence of any indebtedness that would cause the Partnership's leverage ratio to exceed 4.5 to 1.0 . The credit facility also contains customary events of default, such as (i) nonpayment of principal when due, (ii) nonpayment of interest, fees or other amounts, (iii) breach of covenants, (iv) misrepresentation, (v) cross-payment default and cross-acceleration (in each case, to indebtedness in excess of $75.0 million ) and (vi) insolvency. Additionally, the Partnership's revolving credit facility limits its ability to, among other things: (i) incur or guarantee additional debt, (ii) redeem or repurchase units or make distributions under certain circumstances; and (iii) incur certain liens or permit them to exist. Indebtedness under this facility bears interest at the 3 -month LIBOR plus 0.85% . This facility includes customary fees, including a commitment fee of 0.10% and a utilization fee of 0.20% . As of September 30, 2017 , there were no borrowings outstanding under the credit facility. On November 6, 2017, the Partnership withdrew $15.0 million under the credit facility to fund working capital in the near term. Subsequent Events On the Completion Date, the Partnership completed its offering of 42,500,000 common units representing limited partner interests at a price to the public of $18.00 per unit. Subsequent to the closing of the IPO, the underwriters partially exercised their over-allotment option and purchased 5,294,358 additional common units at $18.00 per unit. A total of 47,794,358 common units were issued to the public unitholders in connection with the IPO. On November 6, 2017, the Partnership withdrew $15.0 million under the credit facility to fund our working capital in the near term. We have evaluated subsequent events through December 6, 2017, the date the condensed combined financial statements were issued. Based on this evaluation, it was determined that no subsequent events occurred, other than the items noted above, that require recognition or disclosure in the condensed combined financial statements.

Business and Basis of Present17

Business and Basis of Presentation (Policies) - Predecessor	9 Months Ended
	Sep. 30, 2017
Description Of Business And Basis Of Presentation [Line Items]
Business	Business BP Midstream Partners LP (either individually or together with its subsidiaries, as the context requires, the “Partnership”) is a Delaware limited partnership formed on May 22, 2017 by BP Pipelines (North America) Inc. (“BPPLNA”), an indirect wholly owned subsidiary of BP p.l.c. (“BP”), a “foreign private issuer” within the meaning of the Securities Exchange Act of 1934, as amended, to own, operate, develop and acquire pipelines and other midstream assets. On October 30, 2017 the Partnership completed its initial public offering (“IPO”) of common units representing limited partner interests. See Note 2 - Initial Public Offering for the discussion of the IPO. BP Midstream Partners LP Predecessor consists of three pipeline businesses (as described in more detail below). Unless otherwise stated or the context otherwise indicates, all references to “we,” “our,” “us,” “Predecessor Assets,” “Predecessor,” or similar expressions for time periods prior to the IPO refer to BP Midstream Partners LP Predecessor. For time periods subsequent to the IPO, “we,” “our,” “us,” or similar expressions refer to the legal entity BP Midstream Partners LP. The term “our Parent” refers to BPPLNA, any entity that wholly owns BPPLNA, indirectly or directly, including BP and BP America Inc. (“BPA”), an indirect wholly owned subsidiary of BP, and any entity that is wholly owned by the aforementioned entities, excluding BP Midstream Partners LP Predecessor. Our operations consist of one reportable segment. All of our operations are conducted in the United States, and all our long-lived assets are located in the United States. The Predecessor Assets consist of the following three pipeline businesses: • BP Two Pipeline Company LLC, which owns the BP#2 crude oil pipeline system (“BP2”) comprising 12 miles of pipeline transporting crude oil from Griffith Station, Indiana, to BPA’s refinery in Whiting, Indiana (the “Whiting Refinery”). The BP2 pipeline has a capacity of approximately 475,000 barrels per day. • BP River Rouge Pipeline Company LLC, which owns the Whiting to River Rouge refined products pipeline system (“River Rouge”) comprising 244 miles of pipeline and related assets transporting refined petroleum products from the Whiting Refinery to the refined products terminal at River Rouge, Michigan. The River Rouge pipeline has a capacity of approximately 80,000 barrels per day. • BP D-B Pipeline Company LLC, which owns the Diamondback diluent pipeline system (“Diamondback”) comprising 42 miles of pipeline and related assets transporting diluent from Black Oak Junction, Indiana, to a third-party owned pipeline in Manhattan, Illinois. The Diamondback pipeline has a capacity of approximately 135,000 barrels per day. Certain of BP Midstream Partners LP Predecessor’s businesses are subject to regulation by various authorities including, but not limited to the Federal Energy Regulatory Commission. Regulatory bodies exercise statutory authority over matters such as common carrier tariffs, construction, rates and ratemaking and agreements with customers.
Basis of Accounting	Our accompanying unaudited condensed combined financial statements have been prepared under the rules and regulations of the Securities and Exchange Commission (“SEC”). These rules and regulations conform to the accounting principles contained in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification, the single source of accounting principles generally accepted in the United States (“U.S. GAAP”). As permitted under the rules and regulations of the SEC, certain information and footnote disclosures normally included in the annual financial statements prepared in conformity with U.S. GAAP have been condensed or omitted from these condensed combined financial statements.
Basis of Presentation	These financial statements were derived from the consolidated financial statements and accounting records of our Parent. These financial statements reflect the condensed combined historical results of operations, financial position and cash flows of the Predecessor as if such business had been a separate entity for all periods presented. For ease of reference, these financial statements are referred to as those of the Predecessor Assets. These condensed combined financial statements should be read in conjunction with the combined financial statements and related notes included in the prospectus of the Partnership dated October 25, 2017, as filed with the SEC on October 27, 2017 (the “Prospectus”). These financial statements are presented as if the operations of the Predecessor Assets had been combined for all periods presented. The assets and liabilities in these condensed combined financial statements have been reflected on the historical cost basis, as immediately prior to the closing of the IPO, all of the assets and liabilities presented were transferred to the Partnership within our Parent’s consolidated group in a transaction under common control. All intercompany accounts and transactions within the Predecessor have been eliminated. The accompanying condensed combined statements of operations also include expense allocations for certain functions historically performed by our Parent and not allocated to the Predecessor Assets, including allocations of general corporate expenses related to finance, accounting, treasury, legal, information technology, human resources, shared services, government affairs, insurance, health, safety, security, employee benefits, incentives, severance and environmental functional support. The portion of expenses that are specifically identifiable to the Predecessor Assets are directly recorded to the Predecessor, with the remainder allocated on the basis of headcount, throughput volumes, miles of pipe and other measures. Our management believes the assumptions underlying the financial statements, including the assumptions regarding the allocation of general corporate expenses from our Parent, are reasonable. Nevertheless, the financial statements may not include all of the expenses that would have been incurred, had we been a stand-alone company during the periods presented and may not reflect our financial position, results of operations and cash flows, had we been a stand-alone company during the periods presented. See Note 6 - Related Party Transactions . Prior to the IPO, we did not own or maintain separate bank accounts. Our Parent uses a centralized approach to cash management and historically funded our operating and investing activities as needed within the boundaries of a documented funding agreement. Accordingly, cash held by our Parent at the corporate level was not allocated to us for any of the periods presented. We reflected the cash generated by our operations and expenses paid by our Parent on our behalf as a component of “Net parent investment” on our condensed combined balance sheets, and as a net distribution to our Parent in our condensed combined statements of cash flows. We have also not included any interest income on the net cash transfers to our Parent. The financial statements as of and for the periods ended September 30, 2017 and 2016 , included herein, are unaudited. These financial statements include all known accruals and adjustments necessary, in the opinion of management, for a fair presentation of the results of operations, the condensed combined financial position of the Predecessor Assets and cash flows. Unless otherwise specified, all such adjustments are of a normal and recurring nature. The unaudited results of operations for the interim periods reported are not necessarily indicative of results to be expected for the full year.
Significant Accounting Policies	Summary of Significant Accounting Policies There have been no updates to our accounting policies disclosed in the Prospectus. Please refer to the footnotes to the audited annual combined financial statements included in the Prospectus for a summary of our significant accounting policies.
Recent Accounting Pronouncements	Recent Accounting Pronouncements For additional information on accounting pronouncements issued prior to December 2016, refer to Note 3 - Recent Accounting Pronouncements in the notes to the audited combined financial statements included in the Prospectus. In September 2017, the FASB issued Accounting Standards Update (“ASU”) 2017-13 “Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842).” This ASU delays the mandatory adoption of Topic 606 and Topic 842 for public business entities that otherwise would not meet the definition of a public business entity except for a requirement to include or the inclusion of its financial statements or financial information in another entity’s filing with the SEC. This ASU also revises the guidance related to performance-based incentive fees in Topic 605 and revises the guidance related to leases in Topics 840 and 842. The revisions to the lease guidance eliminate language specific to certain sale-leaseback arrangements, guarantees of lease residual assets and loans made by lessees to owner-lessors. Also included is an amendment to Topic 842 to retain the guidance in Topic 840 covering the impact of changes in tax rates on investments in leveraged leases. This guidance is effective immediately. We do not expect ASU 2017-13 to impact our condensed combined financial statements. However, we together with our Parent are currently evaluating the impact that the adoption of the other provisions under Topic 606 and 842 will have on our condensed combined financial statements and notes to the condensed combined financial statements. In January 2017, the FASB issued ASU 2017-03, “Accounting Changes and Error Corrections (Topic 250).” The amendments to Topic 250 included in this update expand required qualitative disclosures when registrants cannot reasonably estimate the impact that adoption of the ASUs related to revenue (ASU 2014-09), leases (ASU 2016-02) and credit losses (ASU 2016-13) will have on the financial statements. Such qualitative disclosures would include a comparison of the registrant’s new accounting policies, if determined, to current accounting policies, a description of the status of the registrant’s process to implement the new standard and a description of the significant implementation matters yet to be addressed by the registrant. Other than enhancements to the qualitative disclosures regarding future adoption of new ASUs, adoption of the provisions of this standard is not expected to have any impact on our condensed combined financial statements.
Allowance Oil	Allowance Oil Our tariff for crude oil transportation at BP2 includes a fixed loss allowance (“FLA”). An FLA factor per barrel, a fixed percentage, is a separate fee under the applicable crude oil tariff to cover evaporation and other loss in transit. In the three and nine months ended September 30, 2017 and 2016 , all of our revenue at BP2 was generated from services to our Parent. As crude oil is transported, we earn additional income that equals the applicable FLA factor multiplied by the volume transported by our Parent measured at the receipt location. We do not take physical possession of the allowance oil as a result of our services, but record the value of the volumes accumulated as a receivable from our Parent. We recognize the FLA income in Revenue - related parties in the condensed combined statements of operations during the periods when commodities are transported. The amount of revenue recognized is a product of the quantity transported, the applicable FLA factor and the estimated settlement price during the month the product is transported. We cash settle allowance oil receivable with our Parent in the subsequent periods after the transportation service has been performed. The settlement price is a product of the quantity settled and the summation of the calendar-month average price of West Texas Intermediate (“WTI”) on the New York Mercantile Exchange and a differential provided by a trading company wholly owned by our Parent. The differential represents the difference in market price between WTI and the type of allowance oil to be settled and the difference in market price between the current month and the prior month. We measure the embedded derivative along with the allowance oil receivable in their entirety at fair value because the economic characteristics and risks of the embedded derivative are clearly and closely related to the economic characteristics and risks of the host arrangement. We recognize the changes in fair value in earnings in Other income (loss) in the condensed combined statements of operations. The embedded derivative is not designated as a hedging instrument. Refer to Note 7 - Fair Value Measurements for further discussion.

Property, Plant, and Equipment

Property, Plant, and Equipment (Tables)	9 Months Ended
	Sep. 30, 2017
Predecessor
Property, Plant and Equipment [Line Items]
Components of Property, Plant and Equipment	Property, plant and equipment consisted of the following: Depreciable September 30, 2017 December 31, 2016 Land — $ 155 $ 155 Rights-of-way — 1,380 1,380 Building and improvements 16 - 40 years 12,032 12,032 Pipeline and equipment 10 - 30 years 91,704 89,135 Other 4 - 23 years 509 509 Construction in progress — 308 2,082 106,088 105,293 Less: Accumulated depreciation (36,075 ) (34,058 ) Property, plant and equipment, net $ 70,013 $ 71,235

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	9 Months Ended
	Sep. 30, 2017
Predecessor
Payables And Accruals [Line Items]
Schedule of Accrued Liabilities	Accrued liabilities consist of the following: September 30, 2017 December 31, 2016 Current portion of environmental remediation obligation $ 1,645 $ 1,310 Accrued non-capital project expenditures 607 935 Accrued property taxes 165 252 Accrued employee payroll and incentives 81 109 Accrued capital project expenditures 73 1,351 Other accrued liabilities 152 110 Accrued liabilities $ 2,723 $ 4,067

Related Party Transactions (Tab

Related Party Transactions (Tables)	9 Months Ended
	Sep. 30, 2017
Predecessor
Related Party Transaction [Line Items]
Schedule of Related Party Transactions	During three and nine months ended September 30, 2017 and 2016 , we were allocated the following amounts from our Parent, including the insurance expense discussed above, as well as the pension and retirement savings plans and share-based compensation discussed below: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Operating expenses - related parties $ 1,762 $ 1,458 $ 5,233 $ 4,460 General and administrative - related parties 1,210 1,730 3,571 5,397 Total allocated operating and general corporate costs $ 2,972 $ 3,188 $ 8,804 $ 9,857 The following table shows related party expenses directly incurred by us that were included in the accompanying condensed combined statements of operations: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Operating expenses - related parties $ 183 $ 22 $ 579 $ 90 Maintenance expenses - related parties 65 103 257 330 Total directly related party expenses $ 248 $ 125 $ 836 $ 420

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2017
Predecessor
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Schedule of fair value asset hierarchy	At September 30, 2017 and December 31, 2016 , allowance oil receivable balances, including the embedded derivative, were classified as level 2 within the fair value hierarchy in the following table: September 30, 2017 December 31, 2016 Recurring fair value measures Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Allowance oil receivable — $ 3,266 — $ 3,266 — $ 2,532 — $ 2,532

Description of the Business (De

Description of the Business (Details) - USD ($)	Sep. 30, 2017	May 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Note receivable from limited partner	$ 100	$ 100

Business and Basis of Present23

Business and Basis of Presentation (Details) bbl in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)segmentpipelinemibbl	May 31, 2017USD ($)
Description Of Business And Basis Of Presentation [Line Items]
Note receivable from limited partner | $	$ 100	$ 100
Predecessor
Description Of Business And Basis Of Presentation [Line Items]
Number of pipeline systems | pipeline	3
Number of reportable segments | segment	1
Predecessor | Crude Oil
Description Of Business And Basis Of Presentation [Line Items]
Length of pipeline (in miles) | mi	12
Barrels produced per day | bbl	475
Predecessor | Refined Products
Description Of Business And Basis Of Presentation [Line Items]
Length of pipeline (in miles) | mi	244
Barrels produced per day | bbl	80
Predecessor | Natural Gas
Description Of Business And Basis Of Presentation [Line Items]
Length of pipeline (in miles) | mi	42
Barrels produced per day | bbl	135

Initial Public Offering (Detail

Initial Public Offering (Details) - USD ($)	Oct. 30, 2017	Nov. 06, 2017	Sep. 30, 2017
Class of Stock [Line Items]
Outstanding borrowing			$ 0
Subsequent Event
Class of Stock [Line Items]
Units authorized (in shares)	42,500,000
Share price (in dollars per share)	$ 18
Units issued under over-allotment option (in shares)	5,294,358
Units issued (in shares)	47,794,358
Contributed capital	$ 814,700,000
Line of credit facility maximum borrowing capacity	$ 600,000,000
Required consolidated leverage ratio	5
Required consolidated leverage ratio, potential temporary increase	5.5
Debt to EBITDA ratio	4.5
Indebtedness threshold	$ 75,000,000
Commitment fee percentage	0.10%
Utilization fee percentage	0.20%
Outstanding borrowing		$ 15,000,000
Subsequent Event | Long Term Incentive Plan
Class of Stock [Line Items]
Phantom units authorized (in shares)	8,468
Phantom units authorized, aggregate amount	$ 150,000
Subsequent Event | Long Term Incentive Plan | Maximum
Class of Stock [Line Items]
Common units authorized under plan, percentage of total units	5.00%
Subsequent Event | London Interbank Offered Rate (LIBOR)
Class of Stock [Line Items]
Basis spread on variable rate	0.85%
Subsequent Event | BPPLNA - related party
Class of Stock [Line Items]
Annual fees paid to related party	$ 13,300,000
Subsequent Event | BPPLNA
Class of Stock [Line Items]
Units issued (in shares)	4,581,177
Subordinated units issued (in shares)	52,375,535
Ownership interest (in percentage)	54.40%
Subsequent Event | BP Midstream Partners LP Predecessor
Class of Stock [Line Items]
Subsidiary of limited partnership, ownership interest	100.00%
Subsequent Event | Mars Oil Pipeline Company LLC
Class of Stock [Line Items]
Subsidiary of limited partnership, ownership interest	28.50%
Subsequent Event | Mardi Gras Transportation System Company LLC
Class of Stock [Line Items]
Subsidiary of limited partnership, ownership interest	20.00%

Allowance Oil (Details)

Allowance Oil (Details) - Predecessor - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Oil and Gas In Process Activities [Line Items]
Allowance oil receivable (Note 3)	$ 3,266		$ 3,266		$ 2,532
Income related to fixed loss allowance	2,243	$ 1,333	6,240	$ 4,048
Gain (loss) due to changes in fair value related to fixed loss allowance	$ 380	$ (246)	$ (108)	$ 285

Property, Plant, and Equipmen26

Property, Plant, and Equipment (Details) - Predecessor - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 106,088,000		$ 106,088,000		$ 105,293,000
Less: Accumulated depreciation	(36,075,000)		(36,075,000)		(34,058,000)
Property, plant and equipment, net	70,013,000		70,013,000		71,235,000
Gain (loss) from disposition of property, plant, and equipment, net	0	$ 0	6,000	$ 0
Impairments on property, plant, and equipment	0	$ 0	0	$ 0
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	155,000		155,000		155,000
Rights-of-way
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	1,380,000		1,380,000		1,380,000
Building and improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	12,032,000		$ 12,032,000		12,032,000
Building and improvements | Minimum
Property, Plant and Equipment [Line Items]
Depreciable Lives			16 years
Building and improvements | Maximum
Property, Plant and Equipment [Line Items]
Depreciable Lives			40 years
Pipeline and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	91,704,000		$ 91,704,000		89,135,000
Pipeline and equipment | Minimum
Property, Plant and Equipment [Line Items]
Depreciable Lives			10 years
Pipeline and equipment | Maximum
Property, Plant and Equipment [Line Items]
Depreciable Lives			30 years
Other
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	509,000		$ 509,000		509,000
Other | Minimum
Property, Plant and Equipment [Line Items]
Depreciable Lives			4 years
Other | Maximum
Property, Plant and Equipment [Line Items]
Depreciable Lives			23 years
Construction in progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 308,000		$ 308,000		$ 2,082,000

Accrued Liabilities - Schedule

Accrued Liabilities - Schedule of Accrued Liabilities (Details) - Predecessor - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Payables And Accruals [Line Items]
Current portion of environmental remediation obligation	$ 1,645	$ 1,310
Accrued non-capital project expenditures	607	935
Accrued property taxes	165	252
Accrued employee payroll and incentives	81	109
Accrued capital project expenditures	73	1,351
Other accrued liabilities	152	110
Accrued liabilities	$ 2,723	$ 4,067

Related Party Transactions - Re

Related Party Transactions - Related Party Revenue and Expense (Details) - Predecessor - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Related Party Transaction [Line Items]
Revenue from related parties	$ 26,778	$ 22,092	$ 78,832	$ 78,025
BPPLNA (Parent) | Insurance coverage
Related Party Transaction [Line Items]
Expenses from transactions with related parties	$ 925	$ 704	$ 2,703	$ 2,111

Related Party Transactions - 29

Related Party Transactions - Related Party Expenses (Details) - Predecessor - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Related Party Transaction [Line Items]
Operating expenses – related parties	$ 1,945	$ 1,480	$ 5,812	$ 4,550
General and administrative – related parties	1,210	1,730	3,571	5,397
Maintenance expenses – related parties	65	103	257	330
Allocated operating and general corporate transactions
Related Party Transaction [Line Items]
Operating expenses – related parties	1,762	1,458	5,233	4,460
General and administrative – related parties	1,210	1,730	3,571	5,397
Total related party expenses	2,972	3,188	8,804	9,857
Directly incurred transactions
Related Party Transaction [Line Items]
Operating expenses – related parties	183	22	579	90
Maintenance expenses – related parties	65	103	257	330
Total related party expenses	$ 248	$ 125	$ 836	$ 420

Related Party Transactions - Pe

Related Party Transactions - Pension and Retirement Savings Plans (Details) - Predecessor - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Operating expenses
Related Party Transaction [Line Items]
Pension and other post-retirement health insurance costs	$ 13	$ 11	$ 43	$ 36
Defined contribution benefit plan costs	19	8	34	26
General and administrative expenses
Related Party Transaction [Line Items]
Pension and other post-retirement health insurance costs	41	49	142	151
Defined contribution benefit plan costs	$ 59	$ 35	$ 112	$ 107

Related Party Transactions - Sh

Related Party Transactions - Share-based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Predecessor
Related Party Transaction [Line Items]
Allocated share-based compensation expense	$ 84	$ 60	$ 188	$ 177

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Recurring fair value measures - Predecessor - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Allowance oil receivable	$ 3,266	$ 2,532
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Allowance oil receivable	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Allowance oil receivable	3,266	2,532
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Allowance oil receivable	$ 0	$ 0

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Predecessor
Income Taxes [Line Items]
Income tax expense	$ 7,403	$ 6,309	$ 23,219	$ 24,284

Commitments and Contingencies (

Commitments and Contingencies (Details) - Predecessor gal in Thousands, $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Dec. 31, 2010gal	Dec. 31, 2016USD ($)
Site Contingency [Line Items]
Increase (decrease) in provision for environmental remediation costs	$ 1,006	$ 128	$ 1,006	$ 128
Accrued environmental liabilities	4,365		4,365			$ 3,672
Other environmental issues
Site Contingency [Line Items]
Accrued environmental liabilities	220		220			352
River Rouge | Oil release from flange failure in 1964
Site Contingency [Line Items]
Increase (decrease) in provision for environmental remediation costs	989	28	989	28
Accrued environmental liabilities	2,515		$ 2,515			1,700
River Rouge | Oil release from flange failure in 1964 | Maximum
Site Contingency [Line Items]
Time frame to resolve contingency			20 years
River Rouge | Gasoline release in 2010
Site Contingency [Line Items]
Increase (decrease) in provision for environmental remediation costs	99	$ 186	$ 99	$ 186
Accrued environmental liabilities	$ 1,630		$ 1,630			$ 1,620
Loss volume | gal					90
River Rouge | Gasoline release in 2010 | Maximum
Site Contingency [Line Items]
Time frame to resolve contingency			10 years

Subsequent Events (Details)

Subsequent Events (Details)	Oct. 30, 2017USD ($)$ / sharesshares	Nov. 06, 2017USD ($)	Sep. 30, 2017USD ($)
Subsequent Event [Line Items]
Outstanding borrowing			$ 0
Subsequent Event
Subsequent Event [Line Items]
Units authorized (in shares) | shares	42,500,000
Share price (in dollars per share) | $ / shares	$ 18
Units issued under over-allotment option (in shares) | shares	5,294,358
Units issued (in shares) | shares	47,794,358
Line of credit facility maximum borrowing capacity	$ 600,000,000
Required consolidated leverage ratio	5
Required consolidated leverage ratio, potential temporary increase	5.5
Debt to EBITDA ratio	4.5
Indebtedness threshold	$ 75,000,000
Commitment fee percentage	0.10%
Utilization fee percentage	0.20%
Outstanding borrowing		$ 15,000,000
Subsequent Event | London Interbank Offered Rate (LIBOR)
Subsequent Event [Line Items]
Basis spread on variable rate	0.85%
Subsequent Event | BP Midstream Partners LP Predecessor
Subsequent Event [Line Items]
Subsidiary of limited partnership, ownership interest	100.00%
Subsequent Event | Mars Oil Pipeline Company LLC
Subsequent Event [Line Items]
Subsidiary of limited partnership, ownership interest	28.50%
Subsequent Event | Mardi Gras Transportation System Company LLC
Subsequent Event [Line Items]
Subsidiary of limited partnership, ownership interest	20.00%