x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 35-1811116 | |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification Number) | |
2780 Waterfront Parkway East Drive, Suite 200 | ||
Indianapolis, Indiana | 46214 | |
(Address of Principal Executive Officers) | (Zip Code) |
Large accelerated filer | x | Accelerated filer | ¨ | |||
Non-accelerated filer | o (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Page | |
June 30, 2016 | December 31, 2015 | ||||||
(Unaudited) | |||||||
(In millions, except unit data) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 32.2 | $ | 5.6 | |||
Accounts receivable: | |||||||
Trade | 242.6 | 195.3 | |||||
Other | 27.6 | 15.4 | |||||
270.2 | 210.7 | ||||||
Inventories | 444.9 | 384.4 | |||||
Derivative assets | 4.9 | — | |||||
Prepaid expenses and other current assets | 11.5 | 8.3 | |||||
Total current assets | 763.7 | 609.0 | |||||
Property, plant and equipment, net | 1,705.0 | 1,719.2 | |||||
Investment in unconsolidated affiliates | 6.9 | 126.0 | |||||
Goodwill | 178.6 | 212.0 | |||||
Other intangible assets, net | 197.2 | 214.1 | |||||
Other noncurrent assets, net | 55.4 | 64.4 | |||||
Total assets | $ | 2,906.8 | $ | 2,944.7 | |||
LIABILITIES AND PARTNERS’ CAPITAL | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 316.2 | $ | 316.6 | |||
Accrued interest payable | 40.2 | 31.1 | |||||
Accrued salaries, wages and benefits | 13.3 | 32.9 | |||||
Other taxes payable | 21.1 | 17.9 | |||||
Other current liabilities | 144.7 | 119.0 | |||||
Current portion of long-term debt | 1.6 | 1.7 | |||||
Note payable — related party | 39.9 | 73.5 | |||||
Derivative liabilities | 10.4 | 33.9 | |||||
Total current liabilities | 587.4 | 626.6 | |||||
Noncurrent deferred income taxes | 2.0 | 2.1 | |||||
Pension and postretirement benefit obligations | 12.0 | 13.0 | |||||
Other long-term liabilities | 1.0 | 0.9 | |||||
Long-term debt, less current portion | 1,972.9 | 1,698.2 | |||||
Total liabilities | 2,575.3 | 2,340.8 | |||||
Commitments and contingencies | |||||||
Partners’ capital: | |||||||
Limited partners’ interest 76,346,289 units and 75,884,400 units, issued and outstanding as of June 30, 2016, and December 31, 2015, respectively | 319.3 | 578.0 | |||||
General partner’s interest | 18.1 | 27.5 | |||||
Accumulated other comprehensive loss | (5.9 | ) | (1.6 | ) | |||
Total partners’ capital | 331.5 | 603.9 | |||||
Total liabilities and partners’ capital | $ | 2,906.8 | $ | 2,944.7 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(In millions, except per unit and unit data) | |||||||||||||||
Sales | $ | 972.9 | $ | 1,156.2 | $ | 1,685.9 | $ | 2,174.8 | |||||||
Cost of sales | 841.6 | 953.5 | 1,468.4 | 1,776.9 | |||||||||||
Gross profit | 131.3 | 202.7 | 217.5 | 397.9 | |||||||||||
Operating costs and expenses: | |||||||||||||||
Selling | 26.2 | 37.8 | 56.7 | 76.2 | |||||||||||
General and administrative | 24.8 | 31.7 | 52.4 | 70.9 | |||||||||||
Transportation | 45.0 | 42.3 | 84.2 | 84.3 | |||||||||||
Taxes other than income taxes | 4.2 | 4.0 | 9.9 | 8.0 | |||||||||||
Asset impairment | 33.4 | — | 33.4 | — | |||||||||||
Other | 0.3 | 3.2 | 2.3 | 6.1 | |||||||||||
Operating income (loss) | (2.6 | ) | 83.7 | (21.4 | ) | 152.4 | |||||||||
Other income (expense): | |||||||||||||||
Interest expense | (42.8 | ) | (27.4 | ) | (73.1 | ) | (54.4 | ) | |||||||
Debt extinguishment costs | — | (46.6 | ) | — | (46.6 | ) | |||||||||
Realized loss on derivative instruments | (6.0 | ) | (14.0 | ) | (18.3 | ) | (5.1 | ) | |||||||
Unrealized gain (loss) on derivative instruments | 23.8 | 5.2 | 28.4 | (22.7 | ) | ||||||||||
Loss from unconsolidated affiliates | (7.1 | ) | (8.2 | ) | (18.2 | ) | (12.7 | ) | |||||||
Loss on sale of unconsolidated affiliates | (113.4 | ) | — | (113.4 | ) | — | |||||||||
Other | 0.5 | 0.7 | 0.9 | 1.5 | |||||||||||
Total other expense | (145.0 | ) | (90.3 | ) | (193.7 | ) | (140.0 | ) | |||||||
Net income (loss) before income taxes | (147.6 | ) | (6.6 | ) | (215.1 | ) | 12.4 | ||||||||
Income tax expense (benefit) | 0.3 | (9.1 | ) | 0.5 | (13.9 | ) | |||||||||
Net income (loss) | $ | (147.9 | ) | $ | 2.5 | $ | (215.6 | ) | $ | 26.3 | |||||
Allocation of net income (loss): | |||||||||||||||
Net income (loss) | $ | (147.9 | ) | $ | 2.5 | $ | (215.6 | ) | $ | 26.3 | |||||
Less: | |||||||||||||||
General partner’s interest in net income (loss) | (2.9 | ) | — | (4.3 | ) | 0.5 | |||||||||
General partner’s incentive distribution rights | — | 4.2 | — | 8.4 | |||||||||||
Net income (loss) available to limited partners | $ | (145.0 | ) | $ | (1.7 | ) | $ | (211.3 | ) | $ | 17.4 | ||||
Weighted average limited partner units outstanding: | |||||||||||||||
Basic | 76,761,504 | 76,092,517 | 76,491,775 | 73,675,251 | |||||||||||
Diluted | 76,761,504 | 76,092,517 | 76,491,775 | 73,730,189 | |||||||||||
Limited partners’ interest basic and diluted net income (loss) per unit | $ | (1.89 | ) | $ | (0.02 | ) | $ | (2.76 | ) | $ | 0.23 | ||||
Cash distributions declared per limited partner unit | $ | — | $ | 0.685 | $ | 0.685 | $ | 1.37 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(In millions) | |||||||||||||||
Net income (loss) | $ | (147.9 | ) | $ | 2.5 | $ | (215.6 | ) | $ | 26.3 | |||||
Other comprehensive income (loss): | |||||||||||||||
Cash flow hedges: | |||||||||||||||
Cash flow hedge gain reclassified to net income (loss) | (2.3 | ) | (11.5 | ) | (4.4 | ) | (9.8 | ) | |||||||
Change in fair value of cash flow hedges | — | (1.1 | ) | — | (6.2 | ) | |||||||||
Defined benefit pension and retiree health benefit plans | 0.1 | 0.1 | 0.1 | 0.3 | |||||||||||
Foreign currency translation adjustment | — | — | — | (0.3 | ) | ||||||||||
Total other comprehensive loss | (2.2 | ) | (12.5 | ) | (4.3 | ) | (16.0 | ) | |||||||
Comprehensive income (loss) attributable to partners’ capital | $ | (150.1 | ) | $ | (10.0 | ) | $ | (219.9 | ) | $ | 10.3 |
Accumulated Other Comprehensive Loss | Partners’ Capital | ||||||||||||||
General Partner | Limited Partners | Total | |||||||||||||
(In millions) | |||||||||||||||
Balance at December 31, 2015 | $ | (1.6 | ) | $ | 27.5 | $ | 578.0 | $ | 603.9 | ||||||
Other comprehensive loss | (4.3 | ) | — | — | (4.3 | ) | |||||||||
Net loss | — | (4.3 | ) | (211.3 | ) | (215.6 | ) | ||||||||
Amortization of vested phantom units | — | — | 2.9 | 2.9 | |||||||||||
Issuances of phantom units | — | — | 4.1 | 4.1 | |||||||||||
Settlement of tax withholdings on equity-based incentive compensation | — | — | (2.3 | ) | (2.3 | ) | |||||||||
Contributions from Calumet GP, LLC | — | 0.2 | — | 0.2 | |||||||||||
Distributions to partners | — | (5.3 | ) | (52.1 | ) | (57.4 | ) | ||||||||
Balance at June 30, 2016 | $ | (5.9 | ) | $ | 18.1 | $ | 319.3 | $ | 331.5 |
Six Months Ended June 30, | |||||||
2016 | 2015 | ||||||
(In millions) | |||||||
Operating activities | |||||||
Net income (loss) | $ | (215.6 | ) | $ | 26.3 | ||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||
Depreciation and amortization | 82.6 | 71.4 | |||||
Amortization of turnaround costs | 17.4 | 12.7 | |||||
Non-cash interest expense | 4.6 | 2.9 | |||||
Non-cash debt extinguishment costs | — | 9.1 | |||||
Provision for doubtful accounts | 0.5 | 0.2 | |||||
Unrealized (gain) loss on derivative instruments | (28.4 | ) | 22.7 | ||||
Asset impairment | 33.4 | — | |||||
(Gain) loss on disposal of fixed assets | (0.7 | ) | 1.0 | ||||
Non-cash equity based compensation | 2.9 | 5.5 | |||||
Deferred income tax benefit | (0.2 | ) | (14.1 | ) | |||
Lower of cost or market inventory adjustment | (44.4 | ) | 0.8 | ||||
Loss from unconsolidated affiliates | 18.2 | 12.7 | |||||
Loss on sale of unconsolidated affiliates | 113.4 | — | |||||
Other non-cash activities | 2.3 | 2.9 | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | (60.0 | ) | 39.4 | ||||
Inventories | (10.3 | ) | (40.6 | ) | |||
Prepaid expenses and other current assets | (1.5 | ) | 4.5 | ||||
Derivative activity | (10.4 | ) | (3.5 | ) | |||
Turnaround costs | (8.1 | ) | (5.9 | ) | |||
Other assets | (0.4 | ) | — | ||||
Accounts payable | 35.1 | (7.0 | ) | ||||
Accrued interest payable | 9.1 | (5.1 | ) | ||||
Accrued salaries, wages and benefits | (16.0 | ) | 1.6 | ||||
Other taxes payable | 3.2 | 1.3 | |||||
Other liabilities | 22.5 | 21.7 | |||||
Pension and postretirement benefit obligations | (0.9 | ) | (0.5 | ) | |||
Net cash provided by (used in) operating activities | (51.7 | ) | 160.0 | ||||
Investing activities | |||||||
Additions to property, plant and equipment | (87.9 | ) | (153.2 | ) | |||
Investment in unconsolidated affiliates | (41.8 | ) | (46.0 | ) | |||
Proceeds from sale of unconsolidated affiliates | 29.0 | — | |||||
Proceeds from sale of property, plant and equipment | 1.9 | 0.2 | |||||
Net cash used in investing activities | (98.8 | ) | (199.0 | ) | |||
Financing activities | |||||||
Proceeds from borrowings — revolving credit facility | 479.0 | 637.3 | |||||
Repayments of borrowings — revolving credit facility | (589.9 | ) | (685.0 | ) | |||
Repayments of borrowings — senior notes | — | (275.0 | ) | ||||
Repayments of borrowings — related party note | (34.5 | ) | — | ||||
Payments on capital lease obligations | (4.1 | ) | (3.5 | ) | |||
Proceeds from other financing obligations | 2.4 | — | |||||
Proceeds from senior notes offering | 393.1 | 322.6 | |||||
Debt issuance costs | (9.9 | ) | (5.6 | ) | |||
Proceeds from public offerings of common units, net | — | 161.5 | |||||
Contributions from Calumet GP, LLC | 0.2 | 3.5 | |||||
Common units repurchased and taxes paid for phantom unit grants | (1.8 | ) | (3.6 | ) | |||
Distributions to partners | (57.4 | ) | (110.0 | ) | |||
Net cash provided by financing activities | 177.1 | 42.2 | |||||
Net increase in cash and cash equivalents | 26.6 | 3.2 | |||||
Cash and cash equivalents at beginning of period | 5.6 | 8.5 | |||||
Cash and cash equivalents at end of period | $ | 32.2 | $ | 11.7 | |||
Supplemental disclosure of non-cash financing and investing activities | |||||||
Non-cash property, plant and equipment additions | $ | 20.5 | $ | 61.9 |
June 30, 2016 | December 31, 2015 | ||||||
RINs Obligation | $ | 114.7 | $ | 88.4 | |||
Other | 30.0 | 30.6 | |||||
Total | $ | 144.7 | $ | 119.0 |
June 30, 2016 | December 31, 2015 | ||||||
Raw materials | $ | 64.2 | $ | 47.9 | |||
Work in process | 76.1 | 64.0 | |||||
Finished goods | 304.6 | 272.5 | |||||
$ | 444.9 | $ | 384.4 |
June 30, 2016 | December 31, 2015 | ||||||||||||
Investment | Percent Ownership | Investment | Percent Ownership | ||||||||||
Dakota Prairie Refining, LLC | $ | — | — | % | $ | 124.7 | 50.0 | % | |||||
Pacific New Investment Limited | 5.9 | 13.8 | % | — | — | % | |||||||
Other | 1.0 | 1.3 | |||||||||||
Total | $ | 6.9 | $ | 126.0 |
Three Months Ended June 27, | Three Months Ended June 30, | Six Months Ended June 27, | Six Months Ended June 30, | ||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Operating revenue | $ | 74.3 | $ | 48.4 | $ | 119.4 | $ | 50.1 | |||||||
Operating loss | $ | (12.7 | ) | $ | (14.8 | ) | $ | (33.5 | ) | $ | (21.8 | ) | |||
Net loss | $ | (13.6 | ) | $ | (15.2 | ) | $ | (35.2 | ) | $ | (22.3 | ) |
• | The Company’s financial projections for its reporting units are based on its analysis of various supply and demand factors which include, among other things, industry-wide capacity, its planned utilization rate, end-user demand, crack spreads, capital expenditures and economic conditions. Such estimates are consistent with those used in the Company’s planning and capital investment reviews and include recent historical prices and published forward prices. Revenue growth rates assumed for the Company’s Great Falls reporting unit where impairment was recognized were approximately 41.1% for 2016 and (2.6)% to 39.9% for 2017 and beyond. Revenue growth rates assumed for the Company’s San Antonio reporting unit where impairment was recognized were approximately (8.5)% for 2016 and (1.0)% to 27.4%, respectively, for 2017 and beyond. |
• | The discount rate used to measure the present value of the projected future cash flows is based on a variety of factors, including market and economic conditions, operational risk, regulatory risk and political risk. This discount rate is also compared to recent observable market transactions, if possible. The discount rate used for the Company’s Great Falls and San Antonio reporting units where impairment was recognized were approximately 13.0% and 13.5%, respectively, per year. |
Specialty Products | Fuel Products | Oilfield Services | Total | ||||||||||||
Net balance as of December 31, 2014 | $ | 173.5 | $ | 38.5 | $ | 33.8 | $ | 245.8 | |||||||
Impairment (1) | — | — | (33.8 | ) | (33.8 | ) | |||||||||
Net balance as of December 31, 2015 | $ | 173.5 | $ | 38.5 | $ | — | $ | 212.0 | |||||||
Impairment (1) | — | (33.4 | ) | — | (33.4 | ) | |||||||||
Net balance as of June 30, 2016 | $ | 173.5 | $ | 5.1 | $ | — | $ | 178.6 |
(1) | Total accumulated goodwill impairment as of June 30, 2016, and December 31, 2015, is $103.2 million and $69.8 million, respectively. |
June 30, 2016 | December 31, 2015 | ||||||
Borrowings under amended and restated senior secured revolving credit agreement with third-party lenders, interest payments quarterly, borrowings due July 2019, weighted average interest rate of 3.7% at June 30, 2016 | $ | 0.1 | $ | 111.0 | |||
Borrowings under 2021 Secured Notes, interest at a fixed rate of 11.50%, interest payments semiannually, borrowings due January 2021, effective interest rate of 12.1% for the six months ended June 30, 2016 | 400.0 | — | |||||
Borrowings under 2021 Notes, interest at a fixed rate of 6.50%, interest payments semiannually, borrowings due April 2021, effective interest rate of 6.8% for the six months ended June 30, 2016 | 900.0 | 900.0 | |||||
Borrowings under 2022 Notes, interest at a fixed rate of 7.625%, interest payments semiannually, borrowings due January 2022, effective interest rate of 8.0% for the six months ended June 30, 2016 (1) | 352.7 | 352.9 | |||||
Borrowings under 2023 Notes, interest at a fixed rate of 7.75%, interest payments semiannually, borrowings due April 2023, effective interest rate of 8.0% for the six months ended June 30, 2016 | 325.0 | 325.0 | |||||
Related party note payable, interest at a fixed rate of 6.0% on a portion of the note, interest payments at various dates, borrowings due July 2016, weighted average interest rate of 6.0% for the six months ended June 30, 2016 | 39.9 | 73.5 | |||||
Capital lease obligations, at various interest rates, interest and principal payments monthly through October 2034 | 45.6 | 46.4 | |||||
Less unamortized debt issuance costs (2) | (36.0 | ) | (28.9 | ) | |||
Less unamortized discounts | (12.9 | ) | (6.5 | ) | |||
Total long-term debt | 2,014.4 | 1,773.4 | |||||
Less current portion of note payable — related party | 39.9 | 73.5 | |||||
Less current portion of long-term debt | 1.6 | 1.7 | |||||
$ | 1,972.9 | $ | 1,698.2 |
(1) | The balance includes a fair value interest rate hedge adjustment, which increased the debt balance by $2.7 million and $2.9 million as of June 30, 2016, and December 31, 2015, respectively (refer to Note 8 for additional information on the interest rate swap designated as a fair value hedge). |
(2) | Deferred debt issuance costs are being amortized by the effective interest rate method over the lives of the related debt instruments. These amounts are net of accumulated amortization of $10.9 million and $8.1 million at June 30, 2016, and December 31, 2015, respectively. |
Year | Percentage | ||
2018 | 111.500 | % | |
2019 | 108.625 | % | |
2020 and thereafter | 100.000 | % |
Year | Maturity | |||
2016 | $ | 41.5 | ||
2017 | 1.6 | |||
2018 | 1.5 | |||
2019 | 1.4 | |||
2020 | 0.9 | |||
Thereafter | 2,014.5 | |||
Total | $ | 2,061.4 |
• | crude oil purchases and sales; |
• | fuel product sales and purchases; |
• | natural gas purchases; |
• | precious metals purchases; and |
• | fluctuations in the value of crude oil between geographic regions and between the different types of crude oil such as New York Mercantile Exchange West Texas Intermediate (“NYMEX WTI”), Light Louisiana Sweet (“LLS”), Western Canadian Select (“WCS”), Mixed Sweet Blend (“MSW”) and ICE Brent (“Brent”). |
June 30, 2016 | December 31, 2015 | |||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Condensed Consolidated Balance Sheets | Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Condensed Consolidated Balance Sheets | Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | |||||||||||||||||||
Derivative instruments not designated as hedges: | ||||||||||||||||||||||||
Specialty products segment: | ||||||||||||||||||||||||
Natural gas swaps | $ | — | $ | (2.6 | ) | $ | (2.6 | ) | $ | — | $ | — | $ | — | ||||||||||
Fuel products segment: | ||||||||||||||||||||||||
Crude oil swaps | 14.9 | (1.6 | ) | 13.3 | — | — | — | |||||||||||||||||
Crude oil basis swaps | 0.5 | (5.9 | ) | (5.4 | ) | 0.4 | (0.4 | ) | — | |||||||||||||||
Crude oil percentage basis swaps | 0.7 | (0.8 | ) | (0.1 | ) | 0.2 | (0.2 | ) | — | |||||||||||||||
Crude oil options | 1.0 | (1.1 | ) | (0.1 | ) | 0.8 | (0.8 | ) | — | |||||||||||||||
Natural gas swaps | 0.2 | (0.4 | ) | (0.2 | ) | — | — | — | ||||||||||||||||
Total derivative instruments not designated as hedges | 17.3 | (12.4 | ) | 4.9 | 1.4 | (1.4 | ) | — | ||||||||||||||||
Total derivative instruments | $ | 17.3 | $ | (12.4 | ) | $ | 4.9 | $ | 1.4 | $ | (1.4 | ) | $ | — |
June 30, 2016 | December 31, 2015 | |||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Condensed Consolidated Balance Sheets | Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Condensed Consolidated Balance Sheets | Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets | |||||||||||||||||||
Derivative instruments not designated as hedges: | ||||||||||||||||||||||||
Specialty products segment: | ||||||||||||||||||||||||
Natural gas swaps | $ | (6.4 | ) | $ | 2.6 | $ | (3.8 | ) | $ | (14.9 | ) | $ | — | $ | (14.9 | ) | ||||||||
Natural gas collars | (0.2 | ) | — | (0.2 | ) | (0.9 | ) | — | (0.9 | ) | ||||||||||||||
Fuel products segment: | ||||||||||||||||||||||||
Crude oil swaps | (7.1 | ) | 1.6 | (5.5 | ) | (5.2 | ) | — | (5.2 | ) | ||||||||||||||
Crude oil basis swaps | (5.7 | ) | 5.9 | 0.2 | (0.7 | ) | 0.4 | (0.3 | ) | |||||||||||||||
Crude oil percentage basis swaps | (2.0 | ) | 0.8 | (1.2 | ) | (6.9 | ) | 0.2 | (6.7 | ) | ||||||||||||||
Crude oil options | (1.1 | ) | 1.1 | — | (1.1 | ) | 0.8 | (0.3 | ) | |||||||||||||||
Gasoline crack spread swaps | — | — | — | (4.3 | ) | — | (4.3 | ) | ||||||||||||||||
Natural gas swaps | (0.3 | ) | 0.4 | 0.1 | (1.3 | ) | — | (1.3 | ) | |||||||||||||||
Total derivative instruments not designated as hedges | (22.8 | ) | 12.4 | (10.4 | ) | (35.3 | ) | 1.4 | (33.9 | ) | ||||||||||||||
Total derivative instruments | $ | (22.8 | ) | $ | 12.4 | $ | (10.4 | ) | $ | (35.3 | ) | $ | 1.4 | $ | (33.9 | ) |
Type of Derivative | Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Loss on Derivatives (Effective Portion) | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Net Income (Loss) (Effective Portion) | Amount of Gain (Loss) Recognized in Net Income (Loss) on Derivatives (Ineffective Portion) | ||||||||||||||||||||||||
Three Months Ended | Location of Gain (Loss) | Three Months Ended | Location of Gain (Loss) | Three Months Ended | |||||||||||||||||||||||
June 30, | June 30, | June 30, | |||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||||
Specialty products segment: | |||||||||||||||||||||||||||
Crude oil swaps | $ | — | $ | — | Cost of sales | $ | (0.5 | ) | $ | 1.6 | Unrealized/ Realized | $ | — | $ | — | ||||||||||||
Fuel products segment: | |||||||||||||||||||||||||||
Crude oil swaps | (4.5 | ) | (2.7 | ) | Cost of sales | (12.3 | ) | (53.2 | ) | Unrealized/ Realized | — | — | |||||||||||||||
Gasoline swaps | — | 2.7 | Sales | — | 19.3 | Unrealized/ Realized | — | — | |||||||||||||||||||
Diesel swaps | 4.5 | (1.4 | ) | Sales | 15.1 | 39.8 | Unrealized/ Realized | — | — | ||||||||||||||||||
Jet fuel swaps | — | 0.3 | Sales | — | 4.0 | Unrealized/ Realized | — | — | |||||||||||||||||||
Total | $ | — | $ | (1.1 | ) | $ | 2.3 | $ | 11.5 | $ | — | $ | — |
Type of Derivative | Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Loss on Derivatives (Effective Portion) | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Net Income (Loss) (Effective Portion) | Amount of Gain (Loss) Recognized in Net Income (Loss) on Derivatives (Ineffective Portion) | ||||||||||||||||||||||||
Six Months Ended | Location of Gain (Loss) | Six Months Ended | Location of Gain (Loss) | Six Months Ended | |||||||||||||||||||||||
June 30, | June 30, | June 30, | |||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||||
Specialty products segment: | |||||||||||||||||||||||||||
Crude oil swaps | $ | — | $ | — | Cost of sales | $ | (1.2 | ) | $ | 1.2 | Unrealized/ Realized | $ | — | $ | — | ||||||||||||
Fuel products segment: | |||||||||||||||||||||||||||
Crude oil swaps | (5.8 | ) | (9.0 | ) | Cost of sales | (25.5 | ) | (74.7 | ) | Unrealized/ Realized | — | (0.2 | ) | ||||||||||||||
Gasoline swaps | — | 3.5 | Sales | — | 33.3 | Unrealized/ Realized | — | 0.7 | |||||||||||||||||||
Diesel swaps | 5.8 | (1.3 | ) | Sales | 31.1 | 44.6 | Unrealized/ Realized | — | — | ||||||||||||||||||
Jet fuel swaps | — | 0.6 | Sales | — | 5.4 | Unrealized/ Realized | — | — | |||||||||||||||||||
Total | $ | — | $ | (6.2 | ) | $ | 4.4 | $ | 9.8 | $ | — | $ | 0.5 |
Year | Accumulated Other Comprehensive Income | ||
2016 | $ | 2.0 | |
Total | $ | 2.0 |
Location of Loss of Derivative | Amount of Loss Recognized in Net Income (Loss) | Hedged Item | Location of Gain on Hedged Item | Amount of Gain Recognized in Net Income (Loss) | |||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||||||||||||
Swaps not allocated to a specific segment: | |||||||||||||||||||||||||||||||||||||
Interest rate swap | Interest expense | $ | 0.1 | $ | 0.1 | $ | 0.2 | $ | 0.3 | 2022 Notes | Interest income | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Total | $ | 0.1 | $ | 0.1 | $ | 0.2 | $ | 0.3 | $ | — | $ | — | $ | — | $ | — |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Realized gain (loss) on derivative instruments | $ | — | $ | 1.2 | $ | — | $ | 2.4 |
Type of Derivative | Amount of Gain (Loss) Recognized in Realized Loss on Derivative Instruments | Amount of Gain (Loss) Recognized in Unrealized Gain on Derivative Instruments | |||||||||||||
Three Months Ended June 30, | Three Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Specialty products segment: | |||||||||||||||
Natural gas swaps | $ | (3.2 | ) | $ | (2.5 | ) | $ | 6.6 | $ | 3.1 | |||||
Natural gas collars | (0.4 | ) | — | 0.5 | — | ||||||||||
Platinum swaps | — | — | — | (0.2 | ) | ||||||||||
Fuel products segment: | |||||||||||||||
Crude oil swaps | 0.1 | 7.7 | 11.5 | 5.2 | |||||||||||
Crude oil basis swaps | 0.1 | — | (2.3 | ) | 2.2 | ||||||||||
Crude oil percentage basis swaps | (0.5 | ) | — | 5.2 | — | ||||||||||
Crude oil options | (1.5 | ) | — | 0.8 | — | ||||||||||
Gasoline swaps | — | (16.5 | ) | — | (7.0 | ) | |||||||||
Gasoline crack spread swaps | — | (3.9 | ) | — | (1.7 | ) | |||||||||
Diesel swaps | — | 1.2 | — | (3.8 | ) | ||||||||||
Diesel crack spread swaps | — | — | — | 7.4 | |||||||||||
Natural gas swaps | (0.6 | ) | — | 1.5 | — | ||||||||||
Total | $ | (6.0 | ) | $ | (14.0 | ) | $ | 23.8 | $ | 5.2 |
Type of Derivative | Amount of Gain (Loss) Recognized in Realized Loss on Derivative Instruments | Amount of Gain (Loss) Recognized in Unrealized Gain (Loss) on Derivative Instruments | |||||||||||||
Six Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Specialty products segment: | |||||||||||||||
Natural gas swaps | $ | (6.6 | ) | $ | (4.6 | ) | $ | 8.5 | $ | (0.1 | ) | ||||
Natural gas collars | (0.7 | ) | — | 0.6 | — | ||||||||||
Platinum swaps | — | — | — | (0.3 | ) | ||||||||||
Fuel products segment: | |||||||||||||||
Crude oil swaps | (0.8 | ) | (40.6 | ) | 13.0 | 55.4 | |||||||||
Crude oil basis swaps | 0.1 | 1.0 | (4.9 | ) | 1.8 | ||||||||||
Crude oil percentage basis swaps | (4.4 | ) | — | 5.4 | — | ||||||||||
Crude oil options | (1.5 | ) | — | 0.2 | — | ||||||||||
Crude oil futures | (2.0 | ) | — | — | — | ||||||||||
Gasoline swaps | — | (18.4 | ) | — | (8.2 | ) | |||||||||
Gasoline crack spread swaps | (1.2 | ) | (4.7 | ) | 4.3 | (3.2 | ) | ||||||||
Diesel swaps | — | 59.2 | — | (67.2 | ) | ||||||||||
Diesel crack spread swaps | — | 0.9 | — | 1.0 | |||||||||||
Jet fuel swaps | — | 1.6 | — | (1.6 | ) | ||||||||||
Natural gas swaps | (1.2 | ) | — | 1.3 | (0.3 | ) | |||||||||
Total | $ | (18.3 | ) | $ | (5.6 | ) | $ | 28.4 | $ | (22.7 | ) |
Natural Gas Swap Contracts by Expiration Dates | MMBtu | $/MMBtu | ||||
Third Quarter 2016 | 1,380,000 | $ | 4.26 | |||
Fourth Quarter 2016 | 1,540,000 | $ | 4.14 | |||
Calendar Year 2017 | 4,950,000 | $ | 3.85 | |||
Total | 7,870,000 | |||||
Average price | $ | 3.98 |
Natural Gas Swap Contracts by Expiration Dates | MMBtu | $/MMBtu | ||||
First Quarter 2016 | 1,580,000 | $ | 4.24 | |||
Second Quarter 2016 | 1,380,000 | $ | 4.26 | |||
Third Quarter 2016 | 1,380,000 | $ | 4.26 | |||
Fourth Quarter 2016 | 1,540,000 | $ | 4.14 | |||
Calendar Year 2017 | 4,950,000 | $ | 3.85 | |||
Total | 10,830,000 | |||||
Average price | $ | 4.05 |
Natural Gas Collars by Expiration Dates | MMBtu | Average Bought Call ($/MMBtu) | Average Sold Put ($/MMBtu) | |||||||
Third Quarter 2016 | 180,000 | $ | 4.25 | $ | 3.89 | |||||
Fourth Quarter 2016 | 60,000 | $ | 4.25 | $ | 3.89 | |||||
Total | 240,000 | |||||||||
Average price | $ | 4.25 | $ | 3.89 |
Natural Gas Collars by Expiration Dates | MMBtu | Average Bought Call ($/MMBtu) | Average Sold Put ($/MMBtu) | |||||||
First Quarter 2016 | 180,000 | $ | 4.25 | $ | 3.89 | |||||
Second Quarter 2016 | 180,000 | $ | 4.25 | $ | 3.89 | |||||
Third Quarter 2016 | 180,000 | $ | 4.25 | $ | 3.89 | |||||
Fourth Quarter 2016 | 60,000 | $ | 4.25 | $ | 3.89 | |||||
Total | 600,000 | |||||||||
Average price | $ | 4.25 | $ | 3.89 |
Crude Oil Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Swap ($/Bbl) | ||||||
Third Quarter 2016 | 398,894 | 4,336 | $ | 39.46 | |||||
Fourth Quarter 2016 | 398,894 | 4,336 | $ | 39.46 | |||||
Calendar Year 2017 | 1,297,977 | 3,556 | $ | 48.87 | |||||
Total | 2,095,765 | ||||||||
Average price | $ | 45.29 |
Crude Oil Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average Swap ($/Bbl) | ||||||
Calendar Year 2017 | 528,520 | 1,448 | $ | 41.56 | |||||
Total | 528,520 | ||||||||
Average price | $ | 41.56 |
Crude Oil Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Swap ($/Bbl) | ||||||
First Quarter 2016 | 29,120 | 320 | $ | 44.06 | |||||
Second Quarter 2016 | 29,120 | 320 | $ | 44.06 | |||||
Third Quarter 2016 | 29,440 | 320 | $ | 44.06 | |||||
Fourth Quarter 2016 | 29,440 | 320 | $ | 44.06 | |||||
Calendar Year 2017 | 630,720 | 1,728 | $ | 54.94 | |||||
Total | 747,840 | ||||||||
Average price | $ | 53.24 |
Crude Oil Basis Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Differential to NYMEX WTI ($/Bbl) | ||||||
Third Quarter 2016 | 460,000 | 5,000 | $ | 1.80 | |||||
Fourth Quarter 2016 | 460,000 | 5,000 | $ | 1.80 | |||||
Total | 920,000 | ||||||||
Average differential | $ | 1.80 |
Crude Oil Basis Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Differential to NYMEX WTI ($/Bbl) | ||||||
First Quarter 2016 | 182,000 | 2,000 | $ | 2.40 | |||||
Second Quarter 2016 | 182,000 | 2,000 | $ | 2.40 | |||||
Third Quarter 2016 | 184,000 | 2,000 | $ | 2.40 | |||||
Fourth Quarter 2016 | 184,000 | 2,000 | $ | 2.40 | |||||
Total | 732,000 | ||||||||
Average differential | $ | 2.40 |
Crude Oil Basis Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Differential to NYMEX WTI ($/Bbl) | ||||||
Third Quarter 2016 | 1,196,000 | 13,000 | $ | (13.16 | ) | ||||
Fourth Quarter 2016 | 1,196,000 | 13,000 | $ | (13.16 | ) | ||||
Calendar Year 2017 | 2,555,000 | 7,000 | $ | (13.22 | ) | ||||
Total | 4,947,000 | ||||||||
Average differential | $ | (13.19 | ) |
Crude Oil Basis Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Differential to NYMEX WTI ($/Bbl) | ||||||
First Quarter 2016 | 91,000 | 1,000 | $ | (14.10 | ) | ||||
Second Quarter 2016 | 91,000 | 1,000 | $ | (14.10 | ) | ||||
Third Quarter 2016 | 92,000 | 1,000 | $ | (14.10 | ) | ||||
Fourth Quarter 2016 | 92,000 | 1,000 | $ | (14.10 | ) | ||||
Calendar Year 2017 | 365,000 | 1,000 | $ | (13.70 | ) | ||||
Total | 731,000 | ||||||||
Average differential | $ | (13.90 | ) |
Crude Oil Percentage Basis Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Fixed Percentage of NYMEX WTI (Average % of WTI/Bbl) | |||||
Third Quarter 2016 | 736,000 | 8,000 | 73.5 | % | ||||
Fourth Quarter 2016 | 736,000 | 8,000 | 73.5 | % | ||||
Calendar Year 2017 | 1,095,000 | 3,000 | 72.3 | % | ||||
Total | 2,567,000 | |||||||
Average percentage | 73.0 | % |
Crude Oil Percentage Basis Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Fixed Percentage of NYMEX WTI (Average % of WTI/Bbl) | |||||
First Quarter 2016 | 728,000 | 8,000 | 73.5 | % | ||||
Second Quarter 2016 | 728,000 | 8,000 | 73.5 | % | ||||
Third Quarter 2016 | 736,000 | 8,000 | 73.5 | % | ||||
Fourth Quarter 2016 | 736,000 | 8,000 | 73.5 | % | ||||
Calendar Year 2017 | 730,000 | 2,000 | 73.0 | % | ||||
Total | 3,658,000 | |||||||
Average percentage | 73.4 | % |
Crude Oil Option Contracts by Expiration Dates | Barrels Purchased | BPD | Average Bought Call ($/Bbl) | ||||||
Fourth Quarter 2016 | 350,000 | 3,804 | $ | 55.00 | |||||
Total | 350,000 | ||||||||
Average price | $ | 55.00 |
Crude Oil Option Contracts by Expiration Dates | Barrels Purchased | BPD | Average Bought Call ($/Bbl) | ||||||
Fourth Quarter 2016 | 350,000 | 3,804 | $ | 55.00 | |||||
Total | 350,000 | ||||||||
Average price | $ | 55.00 |
Gasoline Crack Spread Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average Swap ($/Bbl) | ||||||
First Quarter 2016 | 873,000 | 9,593 | $ | 8.98 | |||||
Total | 873,000 | ||||||||
Average price | $ | 8.98 |
Natural Gas Swap Contracts by Expiration Dates | MMBtu | $/MMBtu | ||||
Third Quarter 2016 | 606,000 | $ | 3.03 | |||
Fourth Quarter 2016 | 790,000 | $ | 3.02 | |||
Total | 1,396,000 | |||||
Average price | $ | 3.02 |
Natural Gas Swap Contracts by Expiration Dates | MMBtu | $/MMBtu | ||||
First Quarter 2016 | 603,000 | $ | 3.01 | |||
Second Quarter 2016 | 603,000 | $ | 2.99 | |||
Third Quarter 2016 | 606,000 | $ | 3.03 | |||
Fourth Quarter 2016 | 790,000 | $ | 3.02 | |||
Total | 2,602,000 | |||||
Average price | $ | 3.01 |
• | Level 1 — inputs include observable unadjusted quoted prices in active markets for identical assets or liabilities |
• | Level 2 — inputs include other than quoted prices in active markets that are either directly or indirectly observable |
• | Level 3 — inputs include unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions |
June 30, 2016 | December 31, 2015 | ||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Derivative assets: | |||||||||||||||||||||||||||||||
Crude oil swaps | $ | — | $ | — | $ | 13.3 | $ | 13.3 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Crude oil basis swaps | — | — | (5.4 | ) | (5.4 | ) | — | — | — | — | |||||||||||||||||||||
Crude oil percentage basis swaps | — | — | (0.1 | ) | (0.1 | ) | — | — | — | — | |||||||||||||||||||||
Crude oil options | — | — | (0.1 | ) | (0.1 | ) | — | — | — | — | |||||||||||||||||||||
Natural gas swaps | — | — | (2.8 | ) | (2.8 | ) | — | — | — | — | |||||||||||||||||||||
Total derivative assets | — | — | 4.9 | 4.9 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Pension plan investments | 0.4 | 50.2 | — | 50.6 | 0.4 | 47.1 | — | 47.5 | |||||||||||||||||||||||
Total recurring assets at fair value | $ | 0.4 | $ | 50.2 | $ | 4.9 | $ | 55.5 | $ | 0.4 | $ | 47.1 | $ | — | $ | 47.5 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Derivative liabilities: | |||||||||||||||||||||||||||||||
Crude oil swaps | $ | — | $ | — | $ | (5.5 | ) | $ | (5.5 | ) | $ | — | $ | — | $ | (5.2 | ) | $ | (5.2 | ) | |||||||||||
Crude oil basis swaps | — | — | 0.2 | 0.2 | — | — | (0.3 | ) | (0.3 | ) | |||||||||||||||||||||
Crude oil percentage basis swaps | — | — | (1.2 | ) | (1.2 | ) | — | — | (6.7 | ) | (6.7 | ) | |||||||||||||||||||
Crude oil options | — | — | — | — | — | — | (0.3 | ) | (0.3 | ) | |||||||||||||||||||||
Gasoline crack spread swaps | — | — | — | — | — | — | (4.3 | ) | (4.3 | ) | |||||||||||||||||||||
Natural gas swaps | — | — | (3.7 | ) | (3.7 | ) | — | — | (16.2 | ) | (16.2 | ) | |||||||||||||||||||
Natural gas collars | — | — | (0.2 | ) | (0.2 | ) | — | — | (0.9 | ) | (0.9 | ) | |||||||||||||||||||
Total derivative liabilities | — | — | (10.4 | ) | (10.4 | ) | — | — | (33.9 | ) | (33.9 | ) | |||||||||||||||||||
RINs Obligation | — | (114.7 | ) | — | (114.7 | ) | — | (88.4 | ) | — | (88.4 | ) | |||||||||||||||||||
Total recurring liabilities at fair value | $ | — | $ | (114.7 | ) | $ | (10.4 | ) | $ | (125.1 | ) | $ | — | $ | (88.4 | ) | $ | (33.9 | ) | $ | (122.3 | ) |
Six Months Ended June 30, | |||||||
2016 | 2015 | ||||||
Fair value at January 1, | $ | (33.9 | ) | $ | 17.6 | ||
Realized loss on derivative instruments | 18.3 | 5.1 | |||||
Unrealized gain (loss) on derivative instruments | 28.4 | (22.7 | ) | ||||
Interest expense, net | (0.2 | ) | (0.3 | ) | |||
Change in fair value of cash flow hedges | — | (6.2 | ) | ||||
Settlements | (18.1 | ) | (10.6 | ) | |||
Transfers in (out) of Level 3 | — | — | |||||
Fair value at June 30, | $ | (5.5 | ) | $ | (17.1 | ) | |
Total gain (loss) included in net income (loss) attributable to changes in unrealized gain (loss) relating to financial assets and liabilities held as of June 30, | $ | 28.4 | $ | (22.7 | ) |
June 30, 2016 | December 31, 2015 | ||||||||||||||||
Level | Fair Value | Carrying Value | Fair Value | Carrying Value | |||||||||||||
Financial Instrument: | |||||||||||||||||
Senior notes | 1 | $ | 1,128.8 | $ | 1,550.3 | $ | 1,095.8 | $ | 1,230.8 | ||||||||
Senior notes | 2 | $ | 452.0 | $ | 383.6 | $ | 294.1 | $ | 317.6 | ||||||||
Revolving credit facility | 3 | $ | 0.1 | $ | 0.1 | $ | 105.1 | $ | 105.1 | ||||||||
Note payable — related party | 3 | $ | 39.9 | $ | 39.9 | $ | 73.5 | $ | 73.5 | ||||||||
Capital lease and other obligations | 3 | $ | 45.6 | $ | 45.6 | $ | 46.4 | $ | 46.4 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Service cost | $ | — | $ | 0.2 | $ | — | $ | 0.3 | |||||||
Interest cost | 0.7 | 0.6 | 1.3 | 1.3 | |||||||||||
Expected return on assets | (0.8 | ) | (0.9 | ) | (1.6 | ) | (1.7 | ) | |||||||
Amortization of net loss | 0.1 | 0.2 | 0.1 | 0.4 | |||||||||||
Net periodic benefit cost (income) | $ | — | $ | 0.1 | $ | (0.2 | ) | $ | 0.3 |
June 30, 2016 | December 31, 2015 | ||||||||||||||
Level 1 | Level 2 | Level 1 | Level 2 | ||||||||||||
Cash and cash equivalents | $ | 0.4 | $ | — | $ | 0.4 | $ | — | |||||||
Domestic equities | — | 9.9 | — | 9.6 | |||||||||||
Foreign equities | — | 9.3 | — | 9.2 | |||||||||||
Fixed income | — | 31.0 | — | 28.3 | |||||||||||
$ | 0.4 | $ | 50.2 | $ | 0.4 | $ | 47.1 |
Components of Accumulated Other Comprehensive Loss | Amount Reclassified From Accumulated Other Comprehensive Loss | Location of Gain (Loss) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||
Derivative gains (losses) reflected in gross profit: | |||||||||||||||||
$ | 15.1 | $ | 63.1 | $ | 31.1 | $ | 83.3 | Sales | |||||||||
(12.8 | ) | (51.6 | ) | (26.7 | ) | (73.5 | ) | Cost of sales | |||||||||
$ | 2.3 | $ | 11.5 | $ | 4.4 | $ | 9.8 | Total | |||||||||
Amortization of defined benefit pension plans: | |||||||||||||||||
Amortization of net loss | $ | (0.1 | ) | $ | (0.2 | ) | $ | (0.1 | ) | $ | (0.4 | ) | (1) | ||||
$ | (0.1 | ) | $ | (0.2 | ) | $ | (0.1 | ) | $ | (0.4 | ) | Total |
(1) | This accumulated other comprehensive loss component is included in the computation of net periodic benefit cost (income). See Note 11 for additional details. |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Numerator for basic and diluted earnings per limited partner unit: | |||||||||||||||
Net income (loss) | $ | (147.9 | ) | $ | 2.5 | $ | (215.6 | ) | $ | 26.3 | |||||
General partner’s interest in net income (loss) | (2.9 | ) | — | (4.3 | ) | 0.5 | |||||||||
General partner’s incentive distribution rights | — | 4.2 | — | 8.4 | |||||||||||
Net income (loss) available to limited partners | $ | (145.0 | ) | $ | (1.7 | ) | $ | (211.3 | ) | $ | 17.4 | ||||
Denominator for basic and diluted earnings per limited partner unit: | |||||||||||||||
Basic weighted average limited partner units outstanding | 76,761,504 | 76,092,517 | 76,491,775 | 73,675,251 | |||||||||||
Effect of dilutive securities: | |||||||||||||||
Participating securities — phantom units | — | — | — | 54,938 | |||||||||||
Diluted weighted average limited partner units outstanding (1) | 76,761,504 | 76,092,517 | 76,491,775 | 73,730,189 | |||||||||||
Limited partners’ interest basic and diluted net income (loss) per unit | $ | (1.89 | ) | $ | (0.02 | ) | $ | (2.76 | ) | $ | 0.23 |
• | Specialty Products. The specialty products segment produces a variety of lubricating oils, solvents, waxes, synthetic lubricants and other products which are sold to customers who purchase these products primarily as raw material components for basic automotive, industrial and consumer goods. Specialty products also include synthetic lubricants used in manufacturing, mining and automotive applications. |
• | Fuel Products. The fuel products segment produces primarily gasoline, diesel, jet fuel and asphalt which are primarily sold to customers located in the PADD 2, PADD 3 and PADD 4 areas within the U.S. |
• | Oilfield Services. The oilfield services segment markets its products and oilfield services including drilling fluids, completion fluids and solids control services to the oil and gas industry. |
Three Months Ended June 30, 2016 | Specialty Products | Fuel Products | Oilfield Services | Combined Segments | Eliminations | Consolidated Total | |||||||||||||||||
Sales: | |||||||||||||||||||||||
External customers | $ | 332.4 | $ | 619.2 | $ | 21.3 | $ | 972.9 | $ | — | $ | 972.9 | |||||||||||
Intersegment sales | — | 10.0 | — | 10.0 | (10.0 | ) | — | ||||||||||||||||
Total sales | $ | 332.4 | $ | 629.2 | $ | 21.3 | $ | 982.9 | $ | (10.0 | ) | $ | 972.9 | ||||||||||
Loss from unconsolidated affiliates | $ | — | $ | (7.0 | ) | $ | (0.1 | ) | $ | (7.1 | ) | $ | — | $ | (7.1 | ) | |||||||
Adjusted EBITDA | $ | 59.0 | $ | 18.9 | $ | (7.9 | ) | $ | 70.0 | $ | — | $ | 70.0 | ||||||||||
Reconciling items to net loss: | |||||||||||||||||||||||
Depreciation and amortization | 18.8 | 28.5 | 4.8 | 52.1 | — | 52.1 | |||||||||||||||||
Realized gain (loss) on derivatives, not reflected in net loss or settled in a prior period | 0.5 | (2.8 | ) | — | (2.3 | ) | — | (2.3 | ) | ||||||||||||||
Impairment charges | — | 33.4 | — | 33.4 | — | 33.4 | |||||||||||||||||
Loss on sale of unconsolidated affiliate | — | 113.9 | — | 113.9 | — | 113.9 | |||||||||||||||||
Unrealized gain on derivatives | (23.8 | ) | |||||||||||||||||||||
Interest expense | 42.8 | ||||||||||||||||||||||
Non-cash equity based compensation and other non-cash items | 1.5 | ||||||||||||||||||||||
Income tax expense | 0.3 | ||||||||||||||||||||||
Net loss | $ | (147.9 | ) | ||||||||||||||||||||
Three Months Ended June 30, 2015 | Specialty Products | Fuel Products | Oilfield Services | Combined Segments | Eliminations | Consolidated Total | |||||||||||||||||
Sales: | |||||||||||||||||||||||
External customers | $ | 370.6 | $ | 715.1 | $ | 70.5 | $ | 1,156.2 | $ | — | $ | 1,156.2 | |||||||||||
Intersegment sales | 1.7 | 12.1 | — | 13.8 | (13.8 | ) | — | ||||||||||||||||
Total sales | $ | 372.3 | $ | 727.2 | $ | 70.5 | $ | 1,170.0 | $ | (13.8 | ) | $ | 1,156.2 | ||||||||||
Loss from unconsolidated affiliates | $ | — | $ | (8.1 | ) | $ | (0.1 | ) | $ | (8.2 | ) | $ | — | $ | (8.2 | ) | |||||||
Adjusted EBITDA | $ | 63.2 | $ | 46.0 | $ | (14.2 | ) | $ | 95.0 | $ | — | $ | 95.0 | ||||||||||
Reconciling items to net income: | |||||||||||||||||||||||
Depreciation and amortization | 16.7 | 20.2 | 5.7 | 42.6 | — | 42.6 | |||||||||||||||||
Realized loss on derivatives, not reflected in net income or settled in a prior period | (1.6 | ) | (11.0 | ) | — | (12.6 | ) | — | (12.6 | ) | |||||||||||||
Unrealized gain on derivatives | (5.2 | ) | |||||||||||||||||||||
Interest expense | 27.4 | ||||||||||||||||||||||
Debt extinguishment costs | 46.6 | ||||||||||||||||||||||
Non-cash equity based compensation and other non-cash items | 2.8 | ||||||||||||||||||||||
Income tax benefit | (9.1 | ) | |||||||||||||||||||||
Net income | $ | 2.5 |
Six Months Ended June 30, 2016 | Specialty Products | Fuel Products | Oilfield Services | Combined Segments | Eliminations | Consolidated Total | |||||||||||||||||
Sales: | |||||||||||||||||||||||
External customers | $ | 633.1 | $ | 999.1 | $ | 53.7 | $ | 1,685.9 | $ | — | $ | 1,685.9 | |||||||||||
Intersegment sales | 0.4 | 13.7 | — | 14.1 | (14.1 | ) | — | ||||||||||||||||
Total sales | $ | 633.5 | $ | 1,012.8 | $ | 53.7 | $ | 1,700.0 | $ | (14.1 | ) | $ | 1,685.9 | ||||||||||
Loss from unconsolidated affiliates | $ | — | $ | (18.0 | ) | $ | (0.2 | ) | $ | (18.2 | ) | $ | — | $ | (18.2 | ) | |||||||
Adjusted EBITDA | $ | 117.5 | $ | (27.1 | ) | $ | (13.8 | ) | $ | 76.6 | $ | — | $ | 76.6 | |||||||||
Reconciling items to net loss: | |||||||||||||||||||||||
Depreciation and amortization | 37.2 | 53.2 | 9.6 | 100.0 | — | 100.0 | |||||||||||||||||
Realized gain (loss) on derivatives, not reflected in net loss or settled in a prior period | 1.2 | (5.6 | ) | — | (4.4 | ) | — | (4.4 | ) | ||||||||||||||
Impairment charges | — | 33.4 | — | 33.4 | — | 33.4 | |||||||||||||||||
Loss on sale of unconsolidated affiliate | — | 113.9 | — | 113.9 | — | 113.9 | |||||||||||||||||
Unrealized gain on derivatives | (28.4 | ) | |||||||||||||||||||||
Interest expense | 73.1 | ||||||||||||||||||||||
Non-cash equity based compensation and other non-cash items | 4.1 | ||||||||||||||||||||||
Income tax expense | 0.5 | ||||||||||||||||||||||
Net loss | $ | (215.6 | ) | ||||||||||||||||||||
Six Months Ended June 30, 2015 | Specialty Products | Fuel Products | Oilfield Services | Combined Segments | Eliminations | Consolidated Total | |||||||||||||||||
Sales: | |||||||||||||||||||||||
External customers | $ | 732.2 | $ | 1,283.4 | $ | 159.2 | $ | 2,174.8 | $ | — | $ | 2,174.8 | |||||||||||
Intersegment sales | 3.0 | 25.0 | — | 28.0 | (28.0 | ) | — | ||||||||||||||||
Total sales | $ | 735.2 | $ | 1,308.4 | $ | 159.2 | $ | 2,202.8 | $ | (28.0 | ) | $ | 2,174.8 | ||||||||||
Loss from unconsolidated affiliates | $ | — | $ | (12.5 | ) | $ | (0.2 | ) | $ | (12.7 | ) | $ | — | $ | (12.7 | ) | |||||||
Adjusted EBITDA | $ | 129.1 | $ | 109.1 | $ | (18.3 | ) | $ | 219.9 | $ | — | $ | 219.9 | ||||||||||
Reconciling items to net income: | |||||||||||||||||||||||
Depreciation and amortization | 32.6 | 40.2 | 11.3 | 84.1 | — | 84.1 | |||||||||||||||||
Realized loss on derivatives, not reflected in net income or settled in a prior period | (1.2 | ) | (5.3 | ) | — | (6.5 | ) | — | (6.5 | ) | |||||||||||||
Unrealized loss on derivatives | 22.7 | ||||||||||||||||||||||
Interest expense | 54.4 | ||||||||||||||||||||||
Debt extinguishment costs | 46.6 | ||||||||||||||||||||||
Non-cash equity based compensation and other non-cash items | 6.2 | ||||||||||||||||||||||
Income tax benefit | (13.9 | ) | |||||||||||||||||||||
Net income | $ | 26.3 |
Three Months Ended June 30, | |||||||||||||
2016 | 2015 | ||||||||||||
Specialty products: | |||||||||||||
Lubricating oils | $ | 146.3 | 15.0 | % | $ | 158.1 | 13.7 | % | |||||
Solvents | 61.1 | 6.3 | % | 81.6 | 7.1 | % | |||||||
Waxes | 36.3 | 3.7 | % | 33.9 | 2.9 | % | |||||||
Packaged and synthetic specialty products | 76.6 | 7.9 | % | 88.4 | 7.6 | % | |||||||
Other | 12.1 | 1.3 | % | 8.6 | 0.8 | % | |||||||
Total | $ | 332.4 | 34.2 | % | $ | 370.6 | 32.1 | % | |||||
Fuel products: | |||||||||||||
Gasoline | $ | 228.0 | 23.4 | % | $ | 302.6 | 26.2 | % | |||||
Diesel | 238.6 | 24.5 | % | 251.0 | 21.7 | % | |||||||
Jet fuel | 25.8 | 2.7 | % | 37.9 | 3.3 | % | |||||||
Asphalt, heavy fuel oils and other | 126.8 | 13.0 | % | 123.6 | 10.7 | % | |||||||
Total | $ | 619.2 | 63.6 | % | $ | 715.1 | 61.9 | % | |||||
Oilfield services: | |||||||||||||
Total | $ | 21.3 | 2.2 | % | $ | 70.5 | 6.0 | % | |||||
Consolidated sales | $ | 972.9 | 100.0 | % | $ | 1,156.2 | 100.0 | % |
Six Months Ended June 30, | |||||||||||||
2016 | 2015 | ||||||||||||
Specialty products: | |||||||||||||
Lubricating oils | $ | 275.5 | 16.3 | % | $ | 307.9 | 14.2 | % | |||||
Solvents | 117.0 | 6.9 | % | 167.8 | 7.7 | % | |||||||
Waxes | 63.5 | 3.8 | % | 72.9 | 3.4 | % | |||||||
Packaged and synthetic specialty products | 157.5 | 9.3 | % | 168.9 | 7.8 | % | |||||||
Other | 19.6 | 1.3 | % | 14.7 | 0.7 | % | |||||||
Total | $ | 633.1 | 37.6 | % | $ | 732.2 | 33.8 | % | |||||
Fuel products: | |||||||||||||
Gasoline | $ | 390.2 | 23.1 | % | $ | 548.9 | 25.1 | % | |||||
Diesel | 377.5 | 22.4 | % | 464.9 | 21.4 | % | |||||||
Jet fuel | 49.2 | 2.9 | % | 76.1 | 3.5 | % | |||||||
Asphalt, heavy fuel oils and other | 182.2 | 10.8 | % | 193.5 | 8.9 | % | |||||||
Total | $ | 999.1 | 59.2 | % | $ | 1,283.4 | 58.9 | % | |||||
Oilfield services: | |||||||||||||
Total | $ | 53.7 | 3.2 | % | $ | 159.2 | 7.3 | % | |||||
Consolidated sales | $ | 1,685.9 | 100.0 | % | $ | 2,174.8 | 100.0 | % |
• | Gasoline margins have been volatile, due mainly to fluctuations in domestic gasoline inventories. Presently, domestic gasoline inventories are elevated, when compared to the five-year rolling average. Diesel margins have also been negatively impacted by elevated domestic diesel inventory levels. While overall demand for motor fuels was seasonally robust in the second quarter 2016, the independent refining complex continues to operate at elevated utilization levels which, together with the impact of refined product imports, has resulted in a near-term market dynamic in which markets remain well supplied. We expect gasoline margins to decline seasonally due to high inventory levels and the end to the summer driving season. Diesel margins are expected to improve as inventory levels have declined. |
• | Environmental regulations continue to affect our margins in the form of the increasing cost of Renewable Identification Numbers (“RINs”). To the extent we are unable to blend biofuels, we must purchase RINs in the open market to satisfy our annual requirement. As a result, the 26% increase in the price of RINs during the second quarter 2016 adversely affected our results of operations. It is not possible to predict what future volumes or costs may be, but given the increase in required volumes and the volatile price of RINs, we continue to anticipate that RINs have the potential to remain a significant expense for our fuel products segment, assuming current market prices for RINs. |
• | Asphalt demand is expected to accelerate during the third quarter 2016 due to the seasonality of the road construction and roofing industries, which have shown these types of trends of increased seasonal demand in prior years. |
• | Heavy sour crude oil discounts are expected to remain wide as sour crude oil remains oversupplied. Sweet crude oil discounts are expected to remain weak on lower domestic sweet crude oil production and higher foreign sweet and sour crude oil imports. Processing heavy sour crude oil in our refining system results in a lower overall delivered cost of crude oil. |
• | Specialty products margins have remained relatively stable and are expected to remain stable in the near term. |
• | Volatility in crude oil and natural gas prices negatively impacted our oilfield services segment, with a more than 38% decrease in the average U.S. land-based rig count in the first half of 2016. We anticipate the remainder of 2016 will be challenging, and we expect to continue to adapt our cost structure to market conditions, which we believe will position us favorably if the market ultimately recovers. |
• | A further decline in market prices of crude oil, refined products or continued narrow product margins may negatively impact the results of our operations which could result in a long-lived asset or goodwill impairment as experienced in the second quarter 2016. We recorded a $113.9 million loss on the sale of Dakota Prairie Refining, LLC (“Dakota Prairie”), our joint venture with MDU Resources, Inc. (“MDU”), and an asset impairment charge of $33.4 million related to our Great Falls and San Antonio fuels refineries. |
• | sales volumes; |
• | production yields; |
• | specialty products, fuel products and oilfield services segment gross profit; |
• | specialty products, fuel products and oilfield services segment Adjusted EBITDA; and |
• | selling, general and administrative expenses. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2016 | 2015 | % Change | 2016 | 2015 | % Change | ||||||||||||
(In bpd) | (In bpd) | ||||||||||||||||
Total sales volume (1) | 154,286 | 124,440 | 24.0 | % | 139,363 | 122,950 | 13.3 | % | |||||||||
Total feedstock runs (2) | 143,118 | 122,012 | 17.3 | % | 135,751 | 121,439 | 11.8 | % | |||||||||
Facility production: (3) | |||||||||||||||||
Specialty products: | |||||||||||||||||
Lubricating oils | 15,716 | 15,005 | 4.7 | % | 14,785 | 13,377 | 10.5 | % | |||||||||
Solvents | 7,823 | 8,359 | (6.4 | )% | 7,587 | 8,999 | (15.7 | )% | |||||||||
Waxes | 1,581 | 1,513 | 4.5 | % | 1,458 | 1,583 | (7.9 | )% | |||||||||
Packaged and synthetic specialty products (4) | 2,110 | 1,605 | 31.5 | % | 2,117 | 1,525 | 38.8 | % | |||||||||
Other | 1,799 | 1,434 | 25.5 | % | 1,354 | 1,164 | 16.3 | % | |||||||||
Total | 29,029 | 27,916 | 4.0 | % | 27,301 | 26,648 | 2.5 | % | |||||||||
Fuel products: | |||||||||||||||||
Gasoline | 37,954 | 36,491 | 4.0 | % | 37,999 | 37,086 | 2.5 | % | |||||||||
Diesel | 40,057 | 28,649 | 39.8 | % | 35,202 | 29,432 | 19.6 | % | |||||||||
Jet fuel | 4,314 | 5,043 | (14.5 | )% | 4,995 | 5,047 | (1.0 | )% | |||||||||
Asphalt, heavy fuels and other | 32,941 | 26,601 | 23.8 | % | 30,590 | 24,442 | 25.2 | % | |||||||||
Total | 115,266 | 96,784 | 19.1 | % | 108,786 | 96,007 | 13.3 | % | |||||||||
Total facility production (3) | 144,295 | 124,700 | 15.7 | % | 136,087 | 122,655 | 11.0 | % |
(1) | Total sales volume includes sales from the production at our facilities and certain third-party facilities pursuant to supply and/or processing agreements, sales of inventories and the resale of crude oil to third-party customers. Total sales volume includes the sale of purchased fuel product blendstocks, such as ethanol and biodiesel, as components of finished fuel products in our fuel products segment sales. |
(2) | Total feedstock runs represent the bpd of crude oil and other feedstocks processed at our facilities and at certain third-party facilities pursuant to supply and/or processing agreements. |
(3) | Total facility production represents the bpd of specialty products and fuel products yielded from processing crude oil and other feedstocks at our facilities and at certain third-party facilities pursuant to supply and/or processing agreements. The |
(4) | Packaged and synthetic specialty products include production at the Royal Purple, Bel-Ray, Calumet Packaging and Missouri facilities. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(In millions) | |||||||||||||||
Sales | $ | 972.9 | $ | 1,156.2 | $ | 1,685.9 | $ | 2,174.8 | |||||||
Cost of sales | 841.6 | 953.5 | 1,468.4 | 1,776.9 | |||||||||||
Gross profit | 131.3 | 202.7 | 217.5 | 397.9 | |||||||||||
Operating costs and expenses: | |||||||||||||||
Selling | 26.2 | 37.8 | 56.7 | 76.2 | |||||||||||
General and administrative | 24.8 | 31.7 | 52.4 | 70.9 | |||||||||||
Transportation | 45.0 | 42.3 | 84.2 | 84.3 | |||||||||||
Taxes other than income taxes | 4.2 | 4.0 | 9.9 | 8.0 | |||||||||||
Asset impairment | 33.4 | — | 33.4 | — | |||||||||||
Other | 0.3 | 3.2 | 2.3 | 6.1 | |||||||||||
Operating income (loss) | (2.6 | ) | 83.7 | (21.4 | ) | 152.4 | |||||||||
Other income (expense): | |||||||||||||||
Interest expense | (42.8 | ) | (27.4 | ) | (73.1 | ) | (54.4 | ) | |||||||
Debt extinguishment costs | — | (46.6 | ) | — | (46.6 | ) | |||||||||
Realized loss on derivative instruments | (6.0 | ) | (14.0 | ) | (18.3 | ) | (5.1 | ) | |||||||
Unrealized gain (loss) on derivative instruments | 23.8 | 5.2 | 28.4 | (22.7 | ) | ||||||||||
Loss from unconsolidated affiliates | (7.1 | ) | (8.2 | ) | (18.2 | ) | (12.7 | ) | |||||||
Loss on sale of unconsolidated affiliates | (113.4 | ) | — | (113.4 | ) | — | |||||||||
Other | 0.5 | 0.7 | 0.9 | 1.5 | |||||||||||
Total other expense | (145.0 | ) | (90.3 | ) | (193.7 | ) | (140.0 | ) | |||||||
Net income (loss) before income taxes | (147.6 | ) | (6.6 | ) | (215.1 | ) | 12.4 | ||||||||
Income tax expense (benefit) | 0.3 | (9.1 | ) | 0.5 | (13.9 | ) | |||||||||
Net income (loss) | $ | (147.9 | ) | $ | 2.5 | $ | (215.6 | ) | $ | 26.3 | |||||
EBITDA | $ | (61.0 | ) | $ | 103.4 | $ | (59.4 | ) | $ | 184.8 | |||||
Adjusted EBITDA | $ | 70.0 | $ | 95.0 | $ | 76.6 | $ | 219.9 | |||||||
Distributable Cash Flow | $ | 31.7 | $ | 73.3 | $ | 6.6 | $ | 171.9 |
• | the financial performance of our assets without regard to financing methods, capital structure or historical cost basis; |
• | the ability of our assets to generate cash sufficient to pay interest costs and support our indebtedness; |
• | our operating performance and return on capital as compared to those of other companies in our industry, without regard to financing or capital structure; and |
• | the viability of acquisitions and capital expenditure projects and the overall rates of return on alternative investment opportunities. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(In millions) | |||||||||||||||
Reconciliation of Net income (loss) to EBITDA, Adjusted EBITDA and Distributable Cash Flow: | |||||||||||||||
Net income (loss) | $ | (147.9 | ) | $ | 2.5 | $ | (215.6 | ) | $ | 26.3 | |||||
Add: | |||||||||||||||
Interest expense | 42.8 | 27.4 | 73.1 | 54.4 | |||||||||||
Debt extinguishment costs | — | 46.6 | — | 46.6 | |||||||||||
Depreciation and amortization | 43.8 | 36.0 | 82.6 | 71.4 | |||||||||||
Income tax expense (benefit) | 0.3 | (9.1 | ) | 0.5 | (13.9 | ) | |||||||||
EBITDA | $ | (61.0 | ) | $ | 103.4 | $ | (59.4 | ) | $ | 184.8 | |||||
Add: | |||||||||||||||
Unrealized (gain) loss on derivative instruments | $ | (23.8 | ) | $ | (5.2 | ) | $ | (28.4 | ) | $ | 22.7 | ||||
Realized loss on derivatives, not included in net income (loss) or settled in a prior period | (2.3 | ) | (12.6 | ) | (4.4 | ) | (6.5 | ) | |||||||
Amortization of turnaround costs | 8.3 | 6.6 | 17.4 | 12.7 | |||||||||||
Impairment charges | 33.4 | — | 33.4 | — | |||||||||||
Loss on sale of unconsolidated affiliates | 113.9 | — | 113.9 | — | |||||||||||
Non-cash equity based compensation and other non-cash items | 1.5 | 2.8 | 4.1 | 6.2 | |||||||||||
Adjusted EBITDA | $ | 70.0 | $ | 95.0 | $ | 76.6 | $ | 219.9 | |||||||
Less: | |||||||||||||||
Replacement and environmental capital expenditures (1) | $ | 3.3 | $ | 10.0 | $ | 11.1 | $ | 17.3 | |||||||
Cash interest expense (2) | 40.1 | 25.9 | 68.5 | 51.5 | |||||||||||
Turnaround costs | 1.7 | 3.2 | 8.1 | 5.9 | |||||||||||
Loss from unconsolidated affiliates | (7.1 | ) | (8.3 | ) | (18.2 | ) | (12.8 | ) | |||||||
Income tax expense (benefit) | 0.3 | (9.1 | ) | 0.5 | (13.9 | ) | |||||||||
Distributable Cash Flow | $ | 31.7 | $ | 73.3 | $ | 6.6 | $ | 171.9 |
(1) | Replacement capital expenditures are defined as those capital expenditures which do not increase operating capacity or reduce operating costs and exclude turnaround costs. Environmental capital expenditures include asset additions to meet or exceed environmental and operating regulations. |
(2) | Represents consolidated interest expense less non-cash interest expense. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(In millions) | |||||||||||||||
Reconciliation of Segment Adjusted EBITDA to EBITDA and Net income (loss): | |||||||||||||||
Segment Adjusted EBITDA | |||||||||||||||
Specialty products Adjusted EBITDA | $ | 59.0 | $ | 63.2 | $ | 117.5 | $ | 129.1 | |||||||
Fuel products Adjusted EBITDA | 18.9 | 46.0 | (27.1 | ) | 109.1 | ||||||||||
Oilfield Services Adjusted EBITDA | (7.9 | ) | (14.2 | ) | (13.8 | ) | (18.3 | ) | |||||||
Total segment Adjusted EBITDA | $ | 70.0 | $ | 95.0 | $ | 76.6 | $ | 219.9 | |||||||
Less: | |||||||||||||||
Unrealized gain (loss) on derivative instruments | $ | (23.8 | ) | $ | (5.2 | ) | $ | (28.4 | ) | $ | 22.7 | ||||
Realized loss on derivatives, not included in net income (loss) or settled in a prior period | (2.3 | ) | (12.6 | ) | (4.4 | ) | (6.5 | ) | |||||||
Amortization of turnaround costs | 8.3 | 6.6 | 17.4 | 12.7 | |||||||||||
Impairment charges | 33.4 | — | 33.4 | — | |||||||||||
Loss on sale of unconsolidated affiliate | 113.9 | — | 113.9 | — | |||||||||||
Non-cash equity based compensation and other non-cash items | 1.5 | 2.8 | 4.1 | 6.2 | |||||||||||
EBITDA | $ | (61.0 | ) | $ | 103.4 | $ | (59.4 | ) | $ | 184.8 | |||||
Less: | |||||||||||||||
Interest expense | $ | 42.8 | $ | 27.4 | $ | 73.1 | $ | 54.4 | |||||||
Debt extinguishment costs | — | 46.6 | — | 46.6 | |||||||||||
Depreciation and amortization | 43.8 | 36.0 | 82.6 | 71.4 | |||||||||||
Income tax expense (benefit) | 0.3 | (9.1 | ) | 0.5 | (13.9 | ) | |||||||||
Net income (loss) | $ | (147.9 | ) | $ | 2.5 | $ | (215.6 | ) | $ | 26.3 |
Six Months Ended June 30, | |||||||
2016 | 2015 | ||||||
(In millions) | |||||||
Reconciliation of Distributable Cash Flow, Adjusted EBITDA and EBITDA to Net cash provided by (used in) operating activities: | |||||||
Distributable Cash Flow | $ | 6.6 | $ | 171.9 | |||
Add: | |||||||
Replacement and environmental capital expenditures (1) | 11.1 | 17.3 | |||||
Cash interest expense (2) | 68.5 | 51.5 | |||||
Turnaround costs | 8.1 | 5.9 | |||||
Loss from unconsolidated affiliates | (18.2 | ) | (12.8 | ) | |||
Income tax expense (benefit) | 0.5 | (13.9 | ) | ||||
Adjusted EBITDA | $ | 76.6 | $ | 219.9 | |||
Less: | |||||||
Unrealized (gain) loss on derivative instruments | $ | (28.4 | ) | $ | 22.7 | ||
Realized loss on derivatives, not included in net income (loss) or settled in a prior period | (4.4 | ) | (6.5 | ) | |||
Amortization of turnaround costs | 17.4 | 12.7 | |||||
Impairment charges | 33.4 | — | |||||
Loss on sale of unconsolidated affiliate | 113.9 | — | |||||
Non-cash equity based compensation and other non-cash items | 4.1 | 6.2 | |||||
EBITDA | $ | (59.4 | ) | $ | 184.8 | ||
Add: | |||||||
Unrealized (gain) loss on derivative instruments | $ | (28.4 | ) | $ | 22.7 | ||
Cash interest expense (2) | (68.5 | ) | (51.5 | ) | |||
Asset impairment | 33.4 | — | |||||
Non-cash equity based compensation | 2.9 | 5.5 | |||||
Deferred income tax benefit | (0.2 | ) | (14.1 | ) | |||
Lower of cost or market inventory adjustment | (44.4 | ) | 0.8 | ||||
Loss from unconsolidated affiliates | 18.2 | 12.7 | |||||
Loss on sale of unconsolidated affiliates | 113.4 | — | |||||
Amortization of turnaround costs | 17.4 | 12.7 | |||||
Income tax (expense) benefit | (0.5 | ) | 13.9 | ||||
Provision for doubtful accounts | 0.5 | 0.2 | |||||
Debt extinguishment costs | — | (37.5 | ) | ||||
Changes in assets and liabilities: | |||||||
Accounts receivable | (60.0 | ) | 39.4 | ||||
Inventories | (10.3 | ) | (40.6 | ) | |||
Other current assets | (1.5 | ) | 4.5 | ||||
Turnaround costs | (8.1 | ) | (5.9 | ) | |||
Derivative activity | (10.4 | ) | (3.5 | ) | |||
Other assets | (0.4 | ) | — | ||||
Accounts payable | 35.1 | (7.0 | ) | ||||
Accrued interest payable | 9.1 | (5.1 | ) | ||||
Other current liabilities | 9.7 | 24.6 | |||||
Other, including changes in noncurrent liabilities | 0.7 | 3.4 | |||||
Net cash provided by (used in) operating activities | $ | (51.7 | ) | $ | 160.0 |
(1) | Replacement capital expenditures are defined as those capital expenditures which do not increase operating capacity or reduce operating costs and exclude turnaround costs. Environmental capital expenditures include asset additions to meet or exceed environmental and operating regulations. |
(2) | Represents consolidated interest expense less non-cash interest expense. |
Three Months Ended June 30, | ||||||||||
2016 | 2015 | % Change | ||||||||
(Dollars in millions, except barrel and per barrel data) | ||||||||||
Sales by segment: | ||||||||||
Specialty products: | ||||||||||
Lubricating oils | $ | 146.3 | $ | 158.1 | (7.5 | )% | ||||
Solvents | 61.1 | 81.6 | (25.1 | )% | ||||||
Waxes | 36.3 | 33.9 | 7.1 | % | ||||||
Packaged and synthetic specialty products (1) | 76.6 | 88.4 | (13.3 | )% | ||||||
Other (2) | 12.1 | 8.6 | 40.7 | % | ||||||
Total specialty products | $ | 332.4 | $ | 370.6 | (10.3 | )% | ||||
Total specialty products sales volume (in barrels) | 2,760,000 | 2,388,000 | 15.6 | % | ||||||
Average specialty products sales price per barrel | $ | 120.43 | $ | 155.19 | (22.4 | )% | ||||
Fuel products: | ||||||||||
Gasoline | $ | 228.0 | $ | 283.3 | (19.5 | )% | ||||
Diesel | 223.5 | 211.2 | 5.8 | % | ||||||
Jet fuel | 25.8 | 33.9 | (23.9 | )% | ||||||
Asphalt, heavy fuel oils and other (3) | 126.8 | 123.6 | 2.6 | % | ||||||
Hedging activities | 15.1 | 63.1 | (76.1 | )% | ||||||
Total fuel products | $ | 619.2 | $ | 715.1 | (13.4 | )% | ||||
Total fuel products sales volume (in barrels) | 11,280,000 | 8,936,000 | 26.2 | % | ||||||
Average fuel products sales price per barrel (excluding hedging activities) | $ | 53.55 | $ | 72.96 | (26.6 | )% | ||||
Average fuel products sales price per barrel (including hedging activities) | $ | 54.89 | $ | 80.02 | (31.4 | )% | ||||
Total oilfield services | $ | 21.3 | $ | 70.5 | (69.8 | )% | ||||
Total sales | $ | 972.9 | $ | 1,156.2 | (15.9 | )% | ||||
Total specialty and fuel products sales volume (in barrels) | 14,040,000 | 11,324,000 | 24.0 | % |
(1) | Represents packaged and synthetic specialty products at the Royal Purple, Bel-Ray, Calumet Packaging and Missouri facilities. |
(2) | Represents fuels and asphalt, produced in connection with the production of specialty products at the Princeton and Cotton Valley refineries and Dickinson and Karns City facilities. |
(3) | Represents asphalt, heavy fuel oils and other products produced in connection with the production of fuels at the Shreveport, Superior, San Antonio and Great Falls refineries and crude oil sales from the Superior and San Antonio refineries to third-party customers. |
Dollar Change | |||
(In millions) | |||
Sales price | $ | (96.9 | ) |
Volume | 58.7 | ||
Total specialty products segment sales decrease | $ | (38.2 | ) |
Dollar Change | |||
(In millions) | |||
Sales price | $ | (219.1 | ) |
Hedging activities | (48.0 | ) | |
Volume | 171.2 | ||
Total fuel products segment sales decrease | $ | (95.9 | ) |
Three Months Ended June 30, | ||||||||||
2016 | 2015 | % Change | ||||||||
(Dollars in millions, except per barrel data) | ||||||||||
Gross profit by segment: | ||||||||||
Specialty products: | ||||||||||
Gross profit | $ | 98.5 | $ | 109.7 | (10.2 | )% | ||||
Percentage of sales | 29.6 | % | 29.6 | % | ||||||
Specialty products gross profit per barrel | $ | 35.69 | $ | 45.94 | (22.3 | )% | ||||
Fuel products: | ||||||||||
Gross profit excluding hedging activities | $ | 29.2 | $ | 78.9 | (63.0 | )% | ||||
Hedging activities | 2.8 | 9.9 | (71.7 | )% | ||||||
Gross profit | $ | 32.0 | $ | 88.8 | (64.0 | )% | ||||
Percentage of sales | 5.2 | % | 12.4 | % | ||||||
Fuel products gross profit per barrel (excluding hedging activities) | $ | 2.59 | $ | 8.83 | (70.7 | )% | ||||
Fuel products gross profit per barrel (including hedging activities) | $ | 2.84 | $ | 9.94 | (71.4 | )% | ||||
Oilfield services: | ||||||||||
Gross profit | $ | 0.8 | $ | 4.2 | (81.0 | )% | ||||
Percentage of sales | 3.8 | % | 6.0 | % | ||||||
Total gross profit | $ | 131.3 | $ | 202.7 | (35.2 | )% | ||||
Percentage of sales | 13.5 | % | 17.5 | % |
Dollar Change | |||
(In millions) | |||
Three months ended June 30, 2015 reported gross profit | $ | 109.7 | |
Sales price | (96.9 | ) | |
Cost of materials | 51.8 | ||
Volume | 25.1 | ||
LCM inventory adjustment | 7.2 | ||
Operating costs | 1.6 | ||
Three months ended June 30, 2016 reported gross profit | $ | 98.5 |
Dollar Change | |||
(In millions) | |||
Three months ended June 30, 2015 reported gross profit | $ | 88.8 | |
Sales price | (219.1 | ) | |
RINs expense | (17.8 | ) | |
Hedging activities | (7.1 | ) | |
Operating costs | (7.1 | ) | |
Cost of materials | 153.8 | ||
Volume | 38.8 | ||
LCM inventory adjustment | 1.7 | ||
Three months ended June 30, 2016 reported gross profit | $ | 32.0 |
Three Months Ended June 30, | |||||||
2016 | 2015 | ||||||
(In millions) | |||||||
Derivative gain reflected in sales | $ | 15.1 | $ | 63.1 | |||
Derivative loss reflected in cost of sales | (12.8 | ) | (51.6 | ) | |||
Derivative gain reflected in gross profit | $ | 2.3 | $ | 11.5 | |||
Realized loss on derivative instruments | $ | (6.0 | ) | $ | (14.0 | ) | |
Unrealized gain on derivative instruments | 23.8 | 5.2 | |||||
Derivative gain reflected in interest expense | 0.1 | 0.1 | |||||
Total derivative gain reflected in the unaudited condensed consolidated statements of operations | $ | 20.2 | $ | 2.8 | |||
Total loss on commodity derivative settlements | $ | (6.0 | ) | $ | (15.1 | ) |
Six Months Ended June 30, | ||||||||||
2016 | 2015 | % Change | ||||||||
(Dollars in millions, except barrel and per barrel data) | ||||||||||
Sales by segment: | ||||||||||
Specialty products: | ||||||||||
Lubricating oils | $ | 275.5 | $ | 307.9 | (10.5 | )% | ||||
Solvents | 117.0 | 167.8 | (30.3 | )% | ||||||
Waxes | 63.5 | 72.9 | (12.9 | )% | ||||||
Packaged and synthetic specialty products (1) | 157.5 | 168.9 | (6.7 | )% | ||||||
Other (2) | 19.6 | 14.7 | 33.3 | % | ||||||
Total specialty products | $ | 633.1 | $ | 732.2 | (13.5 | )% | ||||
Total specialty products sales volume (in barrels) | 5,120,000 | 4,736,000 | 8.1 | % | ||||||
Average specialty products sales price per barrel | $ | 123.65 | $ | 154.60 | (20.0 | )% | ||||
Fuel products: | ||||||||||
Gasoline | $ | 390.2 | $ | 515.6 | (24.3 | )% | ||||
Diesel | 346.4 | 420.3 | (17.6 | )% | ||||||
Jet fuel | 49.2 | 70.7 | (30.4 | )% | ||||||
Asphalt, heavy fuel oils and other (3) | 182.2 | 193.5 | (5.8 | )% | ||||||
Hedging activities | 31.1 | 83.3 | 62.7 | % | ||||||
Total fuel products | $ | 999.1 | $ | 1,283.4 | (22.2 | )% | ||||
Total fuel products sales volume (in barrels) | 20,244,000 | 17,518,000 | 15.6 | % | ||||||
Average fuel products sales price per barrel (excluding hedging activities) | $ | 47.82 | $ | 68.51 | (30.2 | )% | ||||
Average fuel products sales price per barrel (including hedging activities) | $ | 49.35 | $ | 73.26 | (32.6 | )% | ||||
Total oilfield services | $ | 53.7 | $ | 159.2 | (66.3 | )% | ||||
Total sales | $ | 1,685.9 | $ | 2,174.8 | (22.5 | )% | ||||
Total specialty and fuel products sales volume (in barrels) | 25,364,000 | 22,254,000 | 14.0 | % |
(1) | Represents packaged and synthetic specialty products at the Royal Purple, Bel-Ray, Calumet Packaging and Missouri facilities. |
(2) | Represents fuels and asphalt, produced in connection with the production of specialty products at the Princeton and Cotton Valley refineries and Dickinson and Karns City facilities. |
(3) | Represents asphalt, heavy fuel oils and other products produced in connection with the production of fuels at the Shreveport, Superior, San Antonio and Great Falls refineries and crude oil sales from the Superior, San Antonio and Shreveport refineries to third-party customers. |
Dollar Change | |||
(In millions) | |||
Sales price | $ | (159.4 | ) |
Volume | 60.3 | ||
Total specialty products segment sales decrease | $ | (99.1 | ) |
Dollar Change | |||
(In millions) | |||
Sales price | $ | (419.0 | ) |
Hedging activities | (52.2 | ) | |
Volume | 186.9 | ||
Total fuel products segment sales decrease | $ | (284.3 | ) |
Six Months Ended June 30, | ||||||||||
2016 | 2015 | % Change | ||||||||
(Dollars in millions, except per barrel data) | ||||||||||
Gross profit by segment: | ||||||||||
Specialty products: | ||||||||||
Gross profit | $ | 197.8 | $ | 214.2 | (7.7 | )% | ||||
Percentage of sales | 31.2 | % | 29.3 | % | ||||||
Specialty products gross profit per barrel | $ | 38.63 | $ | 45.23 | (14.6 | )% | ||||
Fuel products: | ||||||||||
Gross profit (loss) excluding hedging activities | $ | 7.4 | $ | 144.1 | (94.9 | )% | ||||
Hedging activities | 5.6 | 8.6 | 34.9 | % | ||||||
Gross profit (loss) | $ | 13.0 | $ | 152.7 | (91.5 | )% | ||||
Percentage of sales | 1.3 | % | 11.9 | % | ||||||
Fuel products gross profit (loss) per barrel (excluding hedging activities) | $ | 0.37 | $ | 8.23 | (95.5 | )% | ||||
Fuel products gross profit (loss) per barrel (including hedging activities) | $ | 0.64 | $ | 8.72 | (92.7 | )% | ||||
Oilfield services: | ||||||||||
Gross profit | $ | 6.7 | $ | 31.0 | (78.4 | )% | ||||
Percentage of sales | 12.5 | % | 19.5 | % | ||||||
Total gross profit | $ | 217.5 | $ | 397.9 | (45.3 | )% | ||||
Percentage of sales | 12.9 | % | 18.3 | % |
Dollar Change | |||
(In millions) | |||
Six months ended June 30, 2015 reported gross profit | $ | 214.2 | |
Sales price | (159.4 | ) | |
Operating costs | (4.5 | ) | |
Cost of materials | 89.4 | ||
LCM inventory adjustment | 32.6 | ||
Volume | 25.5 | ||
Six months ended June 30, 2016 reported gross profit | $ | 197.8 |
Dollar Change | |||
(In millions) | |||
Six months ended June 30, 2015 reported gross profit | $ | 152.7 | |
Sales price | (419.0 | ) | |
RINs expense | (27.3 | ) | |
Operating costs | (19.2 | ) | |
Hedging activities | (3.0 | ) | |
LCM inventory adjustment | (2.8 | ) | |
Cost of materials | 285.3 | ||
Volume | 46.3 | ||
Six months ended June 30, 2016 reported gross profit | $ | 13.0 |
Six Months Ended June 30, | |||||||
2016 | 2015 | ||||||
(In millions) | |||||||
Derivative gain reflected in sales | $ | 31.1 | $ | 83.3 | |||
Derivative loss reflected in cost of sales | (26.7 | ) | (73.5 | ) | |||
Derivative gain reflected in gross profit | $ | 4.4 | $ | 9.8 | |||
Realized loss on derivative instruments | $ | (18.3 | ) | $ | (5.1 | ) | |
Unrealized gain (loss) on derivative instruments | 28.4 | (22.7 | ) | ||||
Derivative gain reflected in interest expense | 0.2 | 0.3 | |||||
Total derivative gain (loss) reflected in the unaudited condensed consolidated statements of operations | $ | 14.7 | $ | (17.7 | ) | ||
Total loss on commodity derivative settlements | $ | (18.3 | ) | $ | (1.8 | ) |
Six Months Ended June 30, | |||||||
2016 | 2015 | ||||||
(In millions) | |||||||
Net cash provided by (used in) operating activities | $ | (51.7 | ) | $ | 160.0 | ||
Net cash used in investing activities | (98.8 | ) | (199.0 | ) | |||
Net cash provided by financing activities | 177.1 | 42.2 | |||||
Net increase in cash and cash equivalents | $ | 26.6 | $ | 3.2 |
Six Months Ended June 30, | |||||||
2016 | 2015 | ||||||
(In millions) | |||||||
Capital improvement expenditures | $ | 40.8 | $ | 158.3 | |||
Replacement capital expenditures | 7.9 | 11.5 | |||||
Environmental capital expenditures | 3.2 | 5.8 | |||||
Turnaround capital expenditures | 8.1 | 5.9 | |||||
Joint venture contributions, net (1) | 12.8 | 46.0 | |||||
Total | $ | 72.8 | $ | 227.5 |
• | a $1.0 billion senior secured revolving credit facility maturing in July 2019, subject to borrowing base limitations, with a maximum letter of credit sublimit equal to $600.0 million, which amount may be increased to 90% of revolver commitments in effect with the consent of the Agent (“revolving credit facility”); |
• | $900.0 million of 6.50% senior notes due 2021 (“2021 Notes”); |
• | $350.0 million of 7.625% senior notes due 2022 (“2022 Notes”); |
• | $325.0 million of 7.75% senior notes due 2023 (“2023 Notes”); |
• | $400.0 million of 11.50% senior secured notes due 2021 (“2021 Secured Notes”); and |
• | $39.9 million related party note payable. |
Quarter Ended | Declaration Date | Record Date | Distribution Date | Quarterly Distribution per Unit | Aggregate Quarterly Distribution | Annualized Distribution per Unit | Aggregate Annualized Distribution | |||||||||||||||
December 31, 2015 | January 19, 2016 | February 2, 2016 | February 12, 2016 | $ | 0.685 | $ | 57.4 | $ | 2.74 | $ | 229.6 |
Payments Due by Period | |||||||||||||||||||
Total | Less Than 1 Year | 1–3 Years | 3–5 Years | More Than 5 Years | |||||||||||||||
(In millions) | |||||||||||||||||||
Operating activities: | |||||||||||||||||||
Interest on long-term debt at contractual rates and maturities (1) | $ | 943.6 | $ | 155.5 | $ | 332.3 | $ | 324.8 | $ | 131.0 | |||||||||
Operating lease obligations (2) | 163.4 | 40.6 | 64.4 | 34.2 | 24.2 | ||||||||||||||
Letters of credit (3) | 64.4 | 64.4 | — | — | — | ||||||||||||||
Purchase commitments (4) | 781.7 | 539.7 | 200.4 | 41.6 | — | ||||||||||||||
Employment agreements | 5.0 | 2.8 | 1.5 | 0.7 | — | ||||||||||||||
Financing activities: | |||||||||||||||||||
Capital lease obligations | 45.6 | 1.6 | 3.0 | 2.0 | 39.0 | ||||||||||||||
Long-term debt obligations, excluding capital lease obligations | 2,015.8 | 40.7 | — | 1,300.1 | 675.0 | ||||||||||||||
Total obligations | $ | 4,019.5 | $ | 845.3 | $ | 601.6 | $ | 1,703.4 | $ | 869.2 |
(1) | Interest on long-term debt at contractual rates and maturities relates primarily to interest on our senior notes, revolving credit facility interest and fees and interest on our capital lease obligations, which excludes the adjustment for the interest rate swap agreement. |
(2) | We have various operating leases primarily for railcars, the use of land, storage tanks, compressor stations, equipment, precious metals and office facilities that extend through August 2035. |
(3) | Letters of credit primarily supporting crude oil purchases and precious metals leasing. |
(4) | Purchase commitments consist primarily of obligations to purchase fixed volumes of crude oil, other feedstocks and finished products for resale from various suppliers based on current market prices at the time of delivery. |
• | crude oil purchases and sales; |
• | refined product sales and purchases; |
• | natural gas purchases; |
• | precious metals; and |
• | fluctuations in the value of crude oil between geographic regions and between the different types of crude oil such as NYMEX WTI, Light Louisiana Sweet (“LLS”), Western Canadian Select (“WCS”), Mixed Sweet Blend (“MSW”) and ICE Brent (“Brent”). |
Crude Oil Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Swap ($/Bbl) | ||||||
Third Quarter 2016 | 398,894 | 4,336 | $ | 39.46 | |||||
Fourth Quarter 2016 | 398,894 | 4,336 | $ | 39.46 | |||||
Calendar Year 2017 | 1,297,977 | 3,556 | $ | 48.87 | |||||
Total | 2,095,765 | ||||||||
Average price | $ | 45.29 |
Crude Oil Swap Contracts by Expiration Dates | Barrels Sold | BPD | Average Swap ($/Bbl) | ||||||
Calendar Year 2017 | 528,520 | 1,448 | $ | 41.56 | |||||
Total | 528,520 | ||||||||
Average price | $ | 41.56 |
Crude Oil Basis Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Differential to NYMEX WTI ($/Bbl) | ||||||
Third Quarter 2016 | 460,000 | 5,000 | $ | 1.80 | |||||
Fourth Quarter 2016 | 460,000 | 5,000 | $ | 1.80 | |||||
Total | 920,000 | ||||||||
Average differential | $ | 1.80 |
Crude Oil Basis Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Average Differential to NYMEX WTI ($/Bbl) | ||||||
Third Quarter 2016 | 1,196,000 | 13,000 | $ | (13.16 | ) | ||||
Fourth Quarter 2016 | 1,196,000 | 13,000 | $ | (13.16 | ) | ||||
Calendar Year 2017 | 2,555,000 | 7,000 | $ | (13.22 | ) | ||||
Total | 4,947,000 | ||||||||
Average differential | $ | (13.19 | ) |
Crude Oil Percentage Basis Swap Contracts by Expiration Dates | Barrels Purchased | BPD | Fixed Percentage of NYMEX WTI (Average % of WTI/Bbl) | |||||
Third Quarter 2016 | 736,000 | 8,000 | 73.5 | % | ||||
Fourth Quarter 2016 | 736,000 | 8,000 | 73.5 | % | ||||
Calendar Year 2017 | 1,095,000 | 3,000 | 72.3 | % | ||||
Total | 2,567,000 | |||||||
Average percentage | 73.0 | % |
Crude Oil Option Contracts by Expiration Dates | Barrels Purchased | BPD | Average Bought Call ($/Bbl) | ||||||
Fourth Quarter 2016 | 350,000 | 3,804 | $ | 55.00 | |||||
Total | 350,000 | ||||||||
Average price | $ | 55.00 |
Natural Gas Swap Contracts by Expiration Dates | MMBtu | $/MMBtu | ||||
Third Quarter 2016 | 606,000 | $ | 3.03 | |||
Fourth Quarter 2016 | 790,000 | $ | 3.02 | |||
Total | 1,396,000 | |||||
Average price | $ | 3.02 |
Natural Gas Swap Contracts by Expiration Dates | MMBtu | $/MMBtu | ||||
Third Quarter 2016 | 1,380,000 | $ | 4.26 | |||
Fourth Quarter 2016 | 1,540,000 | $ | 4.14 | |||
Calendar Year 2017 | 4,950,000 | $ | 3.85 | |||
Total | 7,870,000 | |||||
Average price | $ | 3.98 |
Natural Gas Collars by Expiration Dates | MMBtu | Average Bought Call ($/MMBtu) | Average Sold Put ($/MMBtu) | |||||||
Third Quarter 2016 | 180,000 | $ | 4.25 | $ | 3.89 | |||||
Fourth Quarter 2016 | 60,000 | $ | 4.25 | $ | 3.89 | |||||
Total | 240,000 | |||||||||
Average price | $ | 4.25 | $ | 3.89 |
In millions | |||
Crude oil swaps | $ | 1.6 | |
Crude oil basis swaps | $ | 5.9 | |
Crude oil percentage basis swaps | $ | 2.6 | |
Crude oil option contracts | $ | 0.4 | |
Natural gas swaps | $ | 9.3 | |
Natural gas collars | $ | 0.2 |
June 30, 2016 | December 31, 2015 | ||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||
(In millions) | |||||||||||||||
Financial Instrument: | |||||||||||||||
2021 Notes | $ | 648.0 | $ | 889.1 | $ | 798.3 | $ | 888.0 | |||||||
2022 Notes | $ | 250.0 | $ | 343.3 | $ | 297.5 | $ | 342.8 | |||||||
2023 Notes | $ | 230.8 | $ | 317.9 | $ | 294.1 | $ | 317.6 | |||||||
2021 Secured Notes | $ | 452.0 | $ | 383.6 | $ | — | $ | — |
Exhibit Number | Description | |
3.1 | Certificate of Limited Partnership of Calumet Specialty Products Partners, L.P. (incorporated by reference to Exhibit 3.1 to the Registrant’s Registration Statement on Form S-1 filed with the Commission on October 7, 2005 (File No. 333-128880)). | |
3.2 | Amended and Restated Limited Partnership Agreement of Calumet Specialty Products Partners, L.P. (incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed with the Commission on February 13, 2006 (File No. 000-51734)). | |
3.3 | Amendment No. 1 to the First Amended and Restated Agreement of Limited Partnership of Calumet Specialty Products Partners, L.P. (incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed with the Commission on July 11, 2006 (File No. 000-51734)). | |
3.4 | Amendment No. 2 to First Amended and Restated Agreement of Limited Partnership of Calumet Specialty Products Partners, L.P. (incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed with the Commission on April 18, 2008 (File No. 000-51734)). | |
3.5 | Certificate of Formation of Calumet GP, LLC (incorporated by reference to Exhibit 3.3 of Registrant’s Registration Statement on Form S-1 filed with the Commission on October 7, 2005 (File No. 333-128880)). | |
3.6 | Amended and Restated Limited Liability Company Agreement of Calumet GP, LLC (incorporated by reference to Exhibit 3.2 to the Registrant’s Current Report on Form 8-K filed with the Commission on February 13, 2006 (File No. 000-51734)). | |
4.1 | Indenture, dated April 20, 2016, by and among the Issuers, the Guarantors and the Trustee, relating to the offering of the 2021 Secured Notes (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed with the Commission on April 21, 2016 (File No. 000-51734)). | |
4.2 | Form of 11.5% Senior Secured Note due 2021 (included in Exhibit 4.1 incorporated by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed with the Commission on April 21, 2016 (File No. 000-51734)). | |
10.1 | Amended and Restated Collateral Trust Agreement, dated as of April 20, 2016, among the Partnership, the obligors party thereto, the secured hedge counterparties party thereto and Wilmington Trust, National Association, as Trustee and Collateral Trustee (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the Commission on April 21, 2016 (File No. 000-51734)). | |
10.2 | Second Amended and Restated Intercreditor Agreement, dated April 20, 2016, by and among the Collateral Trustee, Bank of America, N.A., as administrative agent, and the obligors named therein (incorporated by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed with the Commission on April 21, 2016 (File No. 000-51734)). | |
10.3 | Second Amendment to Second Amended and Restated Credit Agreement, dated as of April 20, 2016, by and among the Partnership and certain of its subsidiaries as Borrowers, certain of its subsidiaries as Guarantors, the Lenders, Bank of America, N.A., as Agent, JPMorgan Chase Bank, N.A. and Wells Fargo Bank, N.A., as Co-Syndication Agents, PNC Bank, N.A., as Co-Documentation Agent and Bank of America, N.A., as Issuing Bank (incorporated by reference to Exhibit 10.3 to the Registrant’s Current Report on Form 8-K filed with the Commission on April 21, 2016 (File No. 000-51734)). | |
31.1* | Sarbanes-Oxley Section 302 certification of Timothy Go. | |
31.2* | Sarbanes-Oxley Section 302 certification of R. Patrick Murray, II. | |
32.1** | Section 1350 certification of Timothy Go and R. Patrick Murray, II. | |
100.INS* | XBRL Instance Document | |
101.SCH* | XBRL Taxonomy Extension Schema Document | |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document | |
Exhibit Number | Description | |
* | Filed herewith. | |
** | Furnished herewith. |
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||
By: | Calumet GP, LLC, its general partner | ||
Date: | August 5, 2016 | By: | /s/ R. Patrick Murray, II |
R. Patrick Murray, II | |||
Executive Vice President, Chief Financial Officer and Secretary of Calumet GP, LLC (Principal Accounting and Financial Officer) | |||
(Authorized Person and Principal Accounting Officer) | |||
Exhibit Number | Description | |
3.1 | Certificate of Limited Partnership of Calumet Specialty Products Partners, L.P. (incorporated by reference to Exhibit 3.1 to the Registrant’s Registration Statement on Form S-1 filed with the Commission on October 7, 2005 (File No. 333-128880)). | |
3.2 | Amended and Restated Limited Partnership Agreement of Calumet Specialty Products Partners, L.P. (incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed with the Commission on February 13, 2006 (File No. 000-51734)). | |
3.3 | Amendment No. 1 to the First Amended and Restated Agreement of Limited Partnership of Calumet Specialty Products Partners, L.P. (incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed with the Commission on July 11, 2006 (File No. 000-51734)). | |
3.4 | Amendment No. 2 to First Amended and Restated Agreement of Limited Partnership of Calumet Specialty Products Partners, L.P. (incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed with the Commission on April 18, 2008 (File No. 000-51734)). | |
3.5 | Certificate of Formation of Calumet GP, LLC (incorporated by reference to Exhibit 3.3 of Registrant’s Registration Statement on Form S-1 filed with the Commission on October 7, 2005 (File No. 333-128880)). | |
3.6 | Amended and Restated Limited Liability Company Agreement of Calumet GP, LLC (incorporated by reference to Exhibit 3.2 to the Registrant’s Current Report on Form 8-K filed with the Commission on February 13, 2006 (File No. 000-51734)). | |
4.1 | Indenture, dated April 20, 2016, by and among the Issuers, the Guarantors and the Trustee, relating to the offering of the 2021 Secured Notes (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed with the Commission on April 21, 2016 (File No. 000-51734)). | |
4.2 | Form of 11.5% Senior Secured Note due 2021 (included in Exhibit 4.1 incorporated by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed with the Commission on April 21, 2016 (File No. 000-51734)). | |
10.1 | Amended and Restated Collateral Trust Agreement, dated as of April 20, 2016, among the Partnership, the obligors party thereto, the secured hedge counterparties party thereto and Wilmington Trust, National Association, as Trustee and Collateral Trustee (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the Commission on April 21, 2016 (File No. 000-51734)). | |
10.2 | Second Amended and Restated Intercreditor Agreement, dated April 20, 2016, by and among the Collateral Trustee, Bank of America, N.A., as administrative agent, and the obligors named therein (incorporated by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed with the Commission on April 21, 2016 (File No. 000-51734)). | |
10.3 | Second Amendment to Second Amended and Restated Credit Agreement, dated as of April 20, 2016, by and among the Partnership and certain of its subsidiaries as Borrowers, certain of its subsidiaries as Guarantors, the Lenders, Bank of America, N.A., as Agent, JPMorgan Chase Bank, N.A. and Wells Fargo Bank, N.A., as Co-Syndication Agents, PNC Bank, N.A., as Co-Documentation Agent and Bank of America, N.A., as Issuing Bank (incorporated by reference to Exhibit 10.3 to the Registrant’s Current Report on Form 8-K filed with the Commission on April 21, 2016 (File No. 000-51734)). | |
31.1* | Sarbanes-Oxley Section 302 certification of Timothy Go. | |
31.2* | Sarbanes-Oxley Section 302 certification of R. Patrick Murray, II. | |
32.1** | Section 1350 certification of Timothy Go and R. Patrick Murray, II. | |
100.INS* | XBRL Instance Document | |
101.SCH* | XBRL Taxonomy Extension Schema Document | |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document | |
* | Filed herewith. | |
** | Furnished herewith. |
1. | I have reviewed this Quarterly Report of Calumet Specialty Products Partners, L.P. (the “registrant”) on Form 10-Q for the quarter ended June 30, 2016; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: August 5, 2016 | /s/ Timothy Go | |
Timothy Go | ||
Chief Executive Officer of Calumet GP, LLC, general partner of Calumet Specialty Products Partners, L.P. | ||
(Principal Executive Officer) |
1. | I have reviewed this Quarterly Report of Calumet Specialty Products Partners, L.P. (the “registrant”) on Form 10-Q for the quarter ended June 30, 2016; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: August 5, 2016 | /s/ R. Patrick Murray, II | |
R. Patrick Murray, II | ||
Executive Vice President, Chief Financial Officer and Secretary of Calumet GP, LLC, general partner of Calumet Specialty Products Partners, L.P. | ||
(Principal Financial Officer) |
(a) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
(b) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership. |
August 5, 2016 | /s/ Timothy Go | |
Timothy Go | ||
Chief Executive Officer of Calumet GP, LLC, general partner of Calumet Specialty Products Partners, L.P. | ||
(Principal Executive Officer) |
August 5, 2016 | /s/ R. Patrick Murray, II | |
R. Patrick Murray, II | ||
Executive Vice President, Chief Financial Officer and Secretary of Calumet GP, LLC, general partner of Calumet Specialty Products Partners, L.P. | ||
(Principal Financial Officer) |
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Aug. 05, 2016 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Calumet Specialty Products Partners, L.P. | |
Entity Central Index Key | 0001340122 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 76,371,419 |
Condensed Consolidated Balance Sheets (Parenthetical) - Limited Partner [Member] - shares |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Limited partners’ interest units issued (in shares) | 76,346,289 | 75,884,400 |
Limited partners’ interest units outstanding (in shares) | 76,346,289 | 75,884,400 |
Unaudited Condensed Consolidated Statements of Operations - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
||||||
Income Statement [Abstract] | |||||||||
Sales | $ 972.9 | $ 1,156.2 | $ 1,685.9 | $ 2,174.8 | |||||
Cost of sales | (841.6) | (953.5) | (1,468.4) | (1,776.9) | |||||
Gross profit | 131.3 | 202.7 | 217.5 | 397.9 | |||||
Operating costs and expenses: | |||||||||
Selling | 26.2 | 37.8 | 56.7 | 76.2 | |||||
General and administrative | 24.8 | 31.7 | 52.4 | 70.9 | |||||
Transportation | 45.0 | 42.3 | 84.2 | 84.3 | |||||
Taxes other than income taxes | 4.2 | 4.0 | 9.9 | 8.0 | |||||
Asset Impairment | 33.4 | 0.0 | 33.4 | 0.0 | |||||
Other | 0.3 | 3.2 | 2.3 | 6.1 | |||||
Operating income (loss) | (2.6) | 83.7 | (21.4) | 152.4 | |||||
Other income (expense): | |||||||||
Interest expense | (42.8) | (27.4) | (73.1) | (54.4) | |||||
Debt extinguishment costs | 0.0 | (46.6) | 0.0 | (46.6) | |||||
Realized loss on derivative instruments | (6.0) | (14.0) | (18.3) | (5.1) | |||||
Unrealized gain (loss) on derivative instruments | 23.8 | 5.2 | 28.4 | (22.7) | |||||
Loss from unconsolidated affiliates | (7.1) | (8.2) | (18.2) | (12.7) | |||||
Loss on sale of unconsolidated affiliates | (113.4) | 0.0 | (113.4) | 0.0 | |||||
Other | 0.5 | 0.7 | 0.9 | 1.5 | |||||
Total other expense | (145.0) | (90.3) | (193.7) | (140.0) | |||||
Net income (loss) before income taxes | (147.6) | (6.6) | (215.1) | 12.4 | |||||
Income tax expense (benefit) | 0.3 | (9.1) | 0.5 | (13.9) | |||||
Net income (loss) | (147.9) | 2.5 | (215.6) | 26.3 | |||||
Allocation of net income (loss): | |||||||||
Net income (loss) | (147.9) | 2.5 | (215.6) | 26.3 | |||||
Less: | |||||||||
General partner’s interest in net income (loss) | (2.9) | 0.0 | (4.3) | 0.5 | |||||
General partner’s incentive distribution rights | 0.0 | 4.2 | 0.0 | 8.4 | |||||
Net income (loss) available to limited partners | $ (145.0) | $ (1.7) | $ (211.3) | $ 17.4 | |||||
Weighted average limited partner units outstanding: | |||||||||
Basic (in shares) | 76,761,504 | 76,092,517 | 76,491,775 | 73,675,251 | |||||
Diluted (in shares) | 76,761,504 | [1] | 76,092,517 | 76,491,775 | [1] | 73,730,189 | [1] | ||
Limited partners' interest basic net income (loss) per unit | $ (1.89) | $ (0.02) | $ (2.76) | $ 0.23 | |||||
Limited partners' interest diluted net income (loss) per unit | (1.89) | (0.02) | (2.76) | 0.23 | |||||
Cash distributions declared per limited partner unit (in USD per share) | $ 0.000 | $ 0.685 | $ 0.685 | $ 1.37 | |||||
|
Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (147.9) | $ 2.5 | $ (215.6) | $ 26.3 |
Cash flow hedges: | ||||
Cash flow hedge gain reclassified to net income (loss) | (2.3) | (11.5) | (4.4) | (9.8) |
Change in fair value of cash flow hedges | 0.0 | (1.1) | 0.0 | (6.2) |
Defined benefit pension and retiree health benefit plans | 0.1 | 0.1 | 0.1 | 0.3 |
Foreign currency translation adjustment | 0.0 | 0.0 | 0.0 | (0.3) |
Total other comprehensive loss | (2.2) | (12.5) | (4.3) | (16.0) |
Comprehensive income (loss) attributable to partners’ capital | $ (150.1) | $ (10.0) | $ (219.9) | $ 10.3 |
Unaudited Condensed Consolidated Statements of Partners' Capital - 6 months ended Jun. 30, 2016 - USD ($) $ in Millions |
Total |
Accumulated Other Comprehensive Loss [Member] |
General Partner [Member] |
Limited Partner [Member] |
---|---|---|---|---|
Beginning Balance at Dec. 31, 2015 | $ 603.9 | $ (1.6) | $ 27.5 | $ 578.0 |
Other comprehensive loss | (4.3) | (4.3) | 0.0 | 0.0 |
Net loss | (215.6) | 0.0 | (4.3) | (211.3) |
Amortization of vested phantom units | 2.9 | 0.0 | 0.0 | 2.9 |
Issuances of phantom units | 4.1 | 0.0 | 0.0 | 4.1 |
Settlement of tax withholdings on equity-based incentive compensation | (2.3) | 0.0 | 0.0 | (2.3) |
Contributions from Calumet GP, LLC | 0.2 | 0.0 | 0.2 | 0.0 |
Distributions to partners | (57.4) | 0.0 | (5.3) | (52.1) |
Ending Balance at Jun. 30, 2016 | $ 331.5 | $ (5.9) | $ 18.1 | $ 319.3 |
Description of the Business |
6 Months Ended |
---|---|
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business | Description of the Business Calumet Specialty Products Partners, L.P. (the “Company”) is a publicly traded Delaware limited partnership listed on the NASDAQ Global Select Market (“NASDAQ”) under the ticker symbol “CLMT.” The general partner of the Company is Calumet GP, LLC, a Delaware limited liability company. As of June 30, 2016, the Company had 76,346,289 limited partner common units and 1,558,087 general partner equivalent units outstanding. The general partner owns 2% of the Company and all of the incentive distribution rights (as defined in the Company’s partnership agreement), while the remaining 98% is owned by limited partners. The general partner employs all of the Company’s employees and the Company reimburses the general partner for certain of its expenses. The Company is engaged in the production and marketing of crude oil-based specialty products including lubricating oils, white mineral oils, solvents, petrolatums and waxes and fuel and fuel related products including gasoline, diesel, jet fuel, asphalt and heavy fuel oils, in addition to oilfield services and products. The Company owns and leases additional facilities, primarily related to production and distribution of specialty, fuel and oilfield services products, throughout the United States (“U.S.”). The unaudited condensed consolidated financial statements of the Company as of June 30, 2016, and for the three and six months ended June 30, 2016 and 2015, included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and disclosures normally included in the consolidated financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) in the U.S. have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the following disclosures are adequate to make the information presented not misleading. These unaudited condensed consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary to present fairly the results of operations for the interim periods presented. All adjustments are of a normal nature, unless otherwise disclosed. The results of operations for the three and six months ended June 30, 2016, are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s 2015 Annual Report. |
Summary of Significant Accounting Policies |
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Reclassifications Certain amounts in the prior years’ condensed consolidated financial statements have been reclassified to conform to the current year presentation. Other Current Liabilities Other current liabilities consisted of the following at June 30, 2016 and December 31, 2015 (in millions):
The Company’s RINs obligation (“RINs Obligation”) represents a liability for the purchase of RINs to satisfy the U.S. EPA requirement to blend biofuels into the fuel products it produces pursuant to the EPA’s RFS. RINs are assigned to biofuels produced in the U.S. as required by the EPA. The EPA sets annual quotas for the percentage of biofuels that must be blended into transportation fuels consumed in the U.S. and, as a producer of motor fuels from petroleum, the Company is required to blend biofuels into the fuel products it produces at a rate that will meet the EPA’s annual quota. To the extent the Company is unable to blend biofuels at that rate, it must purchase RINs in the open market to satisfy the annual requirement. The Company’s RINs Obligation is based on the amount of RINs it must purchase and the price of those RINs as of the balance sheet date. The Company uses the inventory model to account for RINs, measuring acquired RINs at weighted-average cost. The cost of RINs used each period is charged to cost of sales with cash inflows and outflows recorded in the operating cash flow section of the unaudited condensed consolidated statements of cash flows. Excess RINs are classified as inventory in the condensed consolidated balance sheets. The Company recognizes a liability at the end of each reporting period in which the Company does not have sufficient RINs to cover the RINs Obligation. The liability is calculated by multiplying the RINs shortage (based on actual results) by the period end RIN spot price. From time to time, the Company holds varying amounts of RINs for resale. RINs obtained from third parties are initially recorded at their cost at the time the Company acquires them and are subsequently revalued at the lower of cost or market as of the last day of each accounting period and the resulting adjustments are reflected in costs of goods sold for the period. The value of RINs obtained from third parties would be reflected in prepaid expenses and other assets on the consolidated balance sheets. New Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Compensation — Stock Compensation (Topic 606): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. Under the new standard, income tax benefits and deficiencies are to be recognized as income tax expense or benefit in the income statement and the tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. Excess tax benefits should be classified along with other income tax cash flows as an operating activity. In regards to forfeitures, the entity may make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. The amendments in this standard are effective for fiscal years (including interim periods) beginning after December 15, 2016, with early adoption permitted. The adoption of ASU 2016-09 is not expected to have an impact on the Company’s condensed consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-07, Investments — Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting (“ASU 2016-07”), which eliminates the retroactive adjustments to an investment upon it qualifying for the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence by the investor. ASU 2016-07 requires that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment qualifies for equity method accounting. The amendments in this standard are effective for fiscal years (including interim periods) beginning after December 15, 2016, with early adoption permitted. The adoption of ASU 2016-07 is not expected to have an impact on the Company’s condensed consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments (“ASU 2016-06”). ASU 2016-06 simplifies the embedded derivative analysis for debt instruments containing contingent call or put options by removing the requirement to assess whether a contingent event is related to interest rates or credit risks. The amendments in this standard are effective for fiscal years (including interim periods) beginning after December 15, 2016, with early adoption permitted. The adoption of ASU 2016-06 is not expected to have an impact on the Company’s condensed consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships (“ASU 2016-05”). ASU 2016-05 clarifies that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument under Topic 815 does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The amendments in this standard are effective for fiscal years (including interim periods) beginning after December 15, 2016, with early adoption permitted. An entity can elect to adopt the amendments of ASU 2016-05 on either a prospective or modified retrospective basis. The adoption of ASU 2016-05 is not expected to have an impact on the Company’s condensed consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which supersedes the lease accounting requirements in Accounting Standards Codification (“ASC”) Topic 840, Leases. ASU 2016-02 provides principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than twelve months regardless of classification. Leases with a term of twelve months or less will be accounted for similar to existing guidance for operating leases. The amendments in this standard are effective for fiscal years (including interim periods) beginning after December 15, 2018, with early adoption permitted and modified retrospective application required. The Company is currently evaluating the impact of this standard on its condensed consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). ASU 2016-01 requires that (i) equity investments in unconsolidated entities that are not accounted for under the equity method of accounting generally be measured at fair value with changes recognized in net income (loss) and (ii) when the fair value option has been elected for financial liabilities, changes in fair value due to instrument-specific credit risk be recognized separately in other comprehensive income (loss). Additionally, ASU 2016-01 changes the presentation and disclosure requirements for financial instruments. The amendments in this standard are effective for fiscal years (including interim periods) beginning after December 15, 2017, with early adoption not permitted. The Company is currently evaluating the impact of this standard on its condensed consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition. ASU 2014-09 is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 was originally effective for fiscal years (including interim periods) beginning after December 15, 2016. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which defers the effective date by one year, with early adoption permitted as of the original effective date. ASU 2014-09 allows for either a full retrospective or a modified retrospective transition method. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606) — Principal versus Agent Considerations (“ASU 2016-08”). ASU 2016-08 provides clarifying guidance regarding the application of ASU 2014-09 when another party, along with the reporting entity, is involved in providing a good or a service to a customer. In these circumstances, an entity is required to determine whether the nature of its promise is to provide that good or service to the customer (that is, the entity is a principal) or to arrange for the good or service to be provided to the customer by the other party (that is, the entity is an agent). ASU 2016-08 clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606) — Identifying Performance Obligations and Licensing (“ASU 2016-10”). ASU 2016-10 further amends the guidance with respect to certain implementation issues on identifying performance obligations and accounting for licenses of intellectual property. In May 2016, the FASB issued ASU No. 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815) — Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016, EITF Meeting (“ASU 2016-11”). The amendments in ASU 2016-11 rescinded certain SEC Staff Observer comments that are codified, effective upon the adoption of ASU 2014-09. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606) — Narrow-Scope Improvements and Practical Expedients (“ASU 2016-12”). The amendments in ASU 2016-12 address certain issues identified in the guidance on assessing collectibility, presentation of sales taxes, non-cash consideration and completed contracts and contract modifications at transition. Companies are permitted to either apply the requirements retrospectively to all prior periods presented or apply the requirements in the year of adoption through a cumulative adjustment. The amendments in these standards, along with ASU 2014-09, are effective for fiscal years (including interim periods) beginning after December 15, 2017. The Company is currently evaluating the impact of these standards on its condensed consolidated financial statements. |
Inventories |
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories The cost of inventory is recorded using the last-in, first-out (“LIFO”) method. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and costs and are subject to the final year-end LIFO inventory valuation. Costs include crude oil and other feedstocks, labor, processing costs and refining overhead costs. Inventories are valued at the lower of cost or market value. The replacement cost of these inventories, based on current market values, would have been $62.5 million and $41.0 million lower as of June 30, 2016, and December 31, 2015, respectively. Inventories consist of the following (in millions):
Under the LIFO method, the most recently incurred costs are charged to cost of sales and inventories are valued at the earliest acquisition costs. In addition, the use of the LIFO inventory method may result in increases or decreases to cost of sales in years that inventory volumes decline as the result of charging cost of sales with LIFO inventory costs generated in prior periods. In periods of rapidly declining prices, LIFO inventories may have to be written down to market value due to the higher costs assigned to LIFO layers in prior periods. Such write downs are subject to reversal in subsequent periods, not to exceed LIFO cost, if prices recover. During the three months ended June 30, 2016 and 2015, the Company recorded $36.3 million and $12.4 million of gains, respectively, in cost of sales in the condensed consolidated statements of operations due to the lower of cost or market (“LCM”) valuation. During the six months ended June 30, 2016 and 2015, the Company recorded $44.4 million of gains and $0.8 million of losses, respectively, in cost of sales in the condensed consolidated statements of operations due to the LCM valuation. |
Investment in Unconsolidated Affiliates |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in Unconsolidated Affiliates | Investment in Unconsolidated Affiliates The following table summarizes the Company’s investments in unconsolidated affiliates as of June 30, 2016, and December 31, 2015 (in millions):
Dakota Prairie Refining, LLC On June 27, 2016, the Company consummated the sale of its 50% equity interest in Dakota Prairie Refining, LLC (“Dakota Prairie”) to joint venture partner WBI Energy, Inc. (“WBI”), a wholly owned subsidiary of MDU Resources Group, Inc. (“MDU”). Concurrent with the Company’s sale of its equity interest in Dakota Prairie to WBI, Tesoro Refining & Marketing Company LLC (“Tesoro”) acquired 100% of Dakota Prairie from WBI in a separate transaction that closed on June 27, 2016. Under the terms of the definitive agreement with WBI, the Company received consideration of $28.5 million, which was offset by the Company’s repayment of $36.0 million in borrowings under Dakota Prairie’s revolving credit facility. In addition, the Company’s $39.4 million letter of credit supporting the Dakota Prairie revolving credit facility was terminated. As part of the transaction, MDU and WBI released the Company from all liabilities arising out of or related to Dakota Prairie. In addition, Tesoro and Dakota Prairie released the Company from all liabilities arising out of the organization, management and operation of Dakota Prairie, subject to certain limited exceptions. Further, WBI agreed to indemnify the Company from all liabilities arising out of or related to Dakota Prairie, subject to certain limited exceptions. As a result of the sale of Dakota Prairie, the Company recorded a loss on sale of unconsolidated affiliate of $113.9 million during the three and six months ended June 30, 2016. The following represents summary financial information for Dakota Prairie, presented at 100% (in millions):
Pacific New Investment Limited and Shandong Hi-Speed Hainan Development Co., Ltd. On August 5, 2015, the Company and The Heritage Group, a related party, formed Pacific New Investment Limited (“PACNIL”) for the purpose of investing in a joint venture with Shandong Hi-Speed Materials Group Corporation and China Construction Installation Engineering Co., Ltd. to construct, develop and operate a solvents refinery in mainland China. The joint venture is named Shandong Hi-Speed Hainan Development Co., Ltd. (“Hi-Speed”). The Company expects to invest $10.0 million in cash and provide a technology license in exchange for an equity interest of approximately 10% in Hi-Speed through its ownership of 23.8% in PACNIL. The Company accounts for its ownership in PACNIL under the equity method of accounting. As of June 30, 2016, the Company had an investment of $5.9 million in PACNIL, primarily related to the purchase of equity in the Hi-Speed joint venture. |
Goodwill (Notes) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill In April 2016, Calumet GP, LLC’s Board of Directors determined to suspend payment of the Company’s quarterly cash distribution. The suspension of the quarterly cash distribution caused a sustained decrease in the Company’s common unit price. As a result, the Company determined that these recent events constituted a triggering event that required the Company to update its financial projections and its goodwill impairment assessment as of April 30, 2016. An impairment charge of $33.4 million for goodwill related to the fuels segment has been recorded in the unaudited condensed consolidated statements of operations within asset impairment. The impairment charge was primarily driven by the reduced outlook on revenues and profitability as a result of falling crude oil prices and crack spreads. To derive the fair value of the reporting units, as required in step one of the impairment test, the Company used the income approach, specifically the discounted cash flow method, to determine the fair value of each reporting unit and the associated amount of the impairment charge. The income approach focuses on the income-producing capability of an asset, measuring the current value of the asset by calculating the present value of its future economic benefits such as cash earnings, cost savings, corporate tax structure and product offerings. Value indications are developed by discounting expected cash flows to their present value at a rate of return that incorporates the risk-free rate for the use of funds, the expected rate of inflation, and risks associated with the reporting unit. Inputs used to estimate the fair value of the Company’s reporting units are considered Level 3 inputs of the fair value hierarchy and include the following:
For Level 3 measurements, significant increases or decreases in long-term growth rates or discount rates in isolation or in combination could result in a significantly lower or higher fair value measurement. Changes in goodwill balances for the periods indicated below are as follows (in millions):
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Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies From time to time, the Company is a party to certain claims and litigation incidental to its business, including claims made by various regulatory and taxation authorities, such as the EPA, various state environmental regulatory bodies, the Internal Revenue Service, various state and local departments of revenue and the federal Occupational Safety and Health Administration (“OSHA”), as the result of audits or reviews of the Company’s business. In addition, the Company has property, business interruption, general liability and various other insurance policies that may result in certain losses or expenditures being reimbursed to the Company. Environmental The Company conducts crude oil and specialty hydrocarbon refining, blending and terminal operations in addition to providing oilfield services and products, which activities are subject to stringent federal, state, regional and local laws and regulations governing worker health and safety, the discharge of materials into the environment and environmental protection. These laws and regulations impose obligations that are applicable to the Company’s operations, such as requiring the acquisition of permits to conduct regulated activities, restricting the manner in which the Company may release materials into the environment, requiring remedial activities or capital expenditures to mitigate pollution from former or current operations, requiring the application of specific health and safety criteria addressing worker protection and imposing substantial liabilities for pollution resulting from its operations. Failure to comply with these laws and regulations may result in the assessment of sanctions, including administrative, civil and criminal penalties; the imposition of investigatory, remedial or corrective action obligations or the incurrence of capital expenditures; the occurrence of delays in the permitting, development or expansion of projects, and the issuance of injunctive relief limiting or prohibiting Company activities. Moreover, certain of these laws impose joint and several, strict liability for costs required to remediate and restore sites where petroleum hydrocarbons, wastes or other materials have been released or disposed. In addition, new laws and regulations, new interpretations of existing laws and regulations, increased governmental enforcement or other developments, some of which legal requirements are discussed below, could significantly increase the Company’s operational or compliance expenditures. Remediation of subsurface contamination is in process at certain of the Company’s refinery sites and is being overseen by the appropriate state agencies. Based on current investigative and remedial activities, the Company believes that the soil and groundwater contamination at these refineries can be controlled or remedied without having a material adverse effect on the Company’s financial condition. However, such costs are often unpredictable and, therefore, there can be no assurance that the future costs will not become material. San Antonio Refinery In connection with the acquisition of the San Antonio refinery, the Company agreed to indemnify NuStar for an unlimited term and without consideration of a monetary deductible or cap from any environmental liabilities associated with the San Antonio refinery, except for any governmental penalties or fines that may result from NuStar’s actions or inactions during NuStar’s 20-month period of ownership of the San Antonio refinery. Anadarko Petroleum Corporation (“Anadarko”) and Age Refining, Inc. (“Age Refining”), a third party that has since entered bankruptcy, are subject to a 1995 Agreed Order from the Texas Natural Resource Conservation Commission, now known as the Texas Commission on Environmental Quality, pursuant to which Anadarko and Age Refining are obligated to assess and remediate certain contamination at the San Antonio refinery that predates the Company’s acquisition of the facility. The Company does not expect this pre-existing contamination at the San Antonio refinery to have a material adverse effect on its financial position or results of operations. Great Falls Refinery In connection with the acquisition of the Great Falls refinery from Connacher Oil and Gas Limited (“Connacher”), the Company became a party to an existing 2002 Refinery Initiative Consent Decree (the “Great Falls Consent Decree”) with the EPA and the Montana Department of Environmental Quality (the “MDEQ”). The material obligations imposed by the Great Falls Consent Decree have been completed. On September 27, 2012, Montana Refining Company, Inc. received a final Corrective Action Order on Consent, replacing the refinery’s previously held hazardous waste permit. This Corrective Action Order on Consent governs the investigation and remediation of contamination at the Great Falls refinery. The Company believes the majority of damages related to such contamination at the Great Falls refinery are covered by a contractual indemnity provided by HollyFrontier Corporation (“Holly”), the owner and operator of the Great Falls refinery prior to its acquisition by Connacher, under an asset purchase agreement between Holly and Connacher, pursuant to which Connacher acquired the Great Falls refinery. Under this asset purchase agreement, Holly agreed to indemnify Connacher and Montana Refining Company, Inc., subject to timely notification, certain conditions and certain monetary baskets and caps, for environmental conditions arising under Holly’s ownership and operation of the Great Falls refinery and existing as of the date of sale to Connacher. During 2014, Holly provided the Company a notice challenging the Company’s position that Holly is obligated to indemnify the Company’s remediation expenses for environmental conditions to the extent arising under Holly’s ownership and operation of the refinery and existing as of the date of sale to Connacher, which expenses totaled approximately $18.5 million as of June 30, 2016, of which $14.6 million was capitalized into the cost of the Company’s recently completed expansion project and $3.9 million was expensed. The Company continues to believe that Holly is responsible to indemnify the Company for these remediation expenses disputed by Holly, and on September 22, 2015, the Company initiated a lawsuit against Holly and the sellers of the Great Falls refinery under the asset purchase agreement. On November 24, 2015, Holly and the sellers of the Great Falls refinery under the asset purchase agreement filed a motion to dismiss the case pending arbitration. On February 10, 2016, the court granted Holly’s motion to dismiss the case and ordered that all of the claims be addressed in arbitration. In the event the Company is unsuccessful, the Company will be responsible for the remediation expenses. The Company expects that it may incur some costs to remediate other environmental conditions at the Great Falls refinery; however, the Company believes at this time that these other costs it may incur will not be material to its financial position or results of operations. Superior Refinery In connection with the acquisition of the Superior refinery, the Company became a party to an existing Refinery Initiative Consent Decree (“Superior Consent Decree”) with the EPA and the Wisconsin Department of Natural Resources (“WDNR”) that applies, in part, to its Superior refinery. Under the Superior Consent Decree, the Company must complete certain reductions in air emissions at the Superior refinery as well as report upon certain emissions from the refinery to the EPA and the WDNR. As of June 30, 2016, the Company estimates costs of up to $4.0 million to make known equipment upgrades and conduct other discrete tasks in compliance with the Superior Consent Decree. Failure to perform these required tasks under the Superior Consent Decree could result in the imposition of stipulated penalties, which could be material. The Company is currently assessing certain past actions at the refinery for compliance with the terms of the Superior Consent Decree, which actions may be subject to stipulated penalties under the Superior Consent Decree but, in any event, the Company does not currently believe that the imposition of such penalties for those actions, should they be imposed, would be material. In addition, the Company is pursuing certain additional environmental and safety-related projects at the Superior refinery. Completion of these additional projects will result in the Company incurring additional costs, which could be substantial. For the three and six months ended June 30, 2016 and 2015, the Company incurred less than $0.1 million for costs related to installing process equipment at the Superior refinery pursuant to EPA fuel content regulations. On June 29, 2012, the EPA issued a Finding of Violation/Notice of Violation to the Superior refinery, which included a proposed penalty amount of $0.1 million. This finding is in response to information provided to the EPA by the Company in response to an information request. The EPA alleges that the efficiency of the flares at the Superior refinery is lower than regulatory requirements. The Company is contesting the allegations and is in settlement discussions with the EPA to resolve this issue. The Company has not yet received formal action from the EPA. The Company does not believe that the resolution of these allegations will have a material adverse effect on its financial position or results of operations. The Company is contractually indemnified by Murphy Oil Corporation (“Murphy Oil”) under an asset purchase agreement between the Company and Murphy Oil for specified environmental liabilities arising from the operation of the Superior refinery including: (i) certain obligations arising out of the Superior Consent Decree (including payment of a civil penalty required under the Superior Consent Decree), (ii) certain liabilities arising in connection with Murphy Oil’s transport of certain wastes and other materials to specified offsite real properties for disposal or recycling prior to the acquisition of Superior and (iii) certain liabilities for certain third-party actions, suits or proceedings alleging exposure, prior to the acquisition of Superior, of an individual to wastes or other materials at the specified on-site real property, which wastes or other materials were spilled, released, emitted or otherwise discharged by Murphy Oil. The Company believes contractual indemnity by Murphy Oil for such specified environmental liabilities is unlimited in duration and not subject to any monetary deductibles or maximums. The amount of any damages payable by Murphy Oil pursuant to the contractual indemnities under the asset purchase agreement are net of any amount recoverable under an environmental insurance policy that the Company obtained in connection with the acquisition of the Superior refinery, which named the Company and Murphy Oil as insureds and covers environmental conditions existing at the Superior refinery prior to the acquisition of the Superior refinery. Shreveport, Cotton Valley and Princeton Refineries On December 23, 2010, the Company entered into a settlement agreement with the Louisiana Department of Environmental Quality (“LDEQ”) under LDEQ’s “Small Refinery and Single Site Refinery Initiative,” covering the Shreveport, Princeton and Cotton Valley refineries. This settlement agreement became effective on January 31, 2012. The settlement agreement, termed the “Global Settlement,” resolved alleged violations of the federal Clean Air Act and federal Clean Water Act regulations that arose prior to December 23, 2010. Among other things, the Company agreed to complete beneficial environmental programs and implement emissions reduction projects at the Company’s Shreveport, Cotton Valley and Princeton refineries on an agreed-upon schedule. During the three months ended June 30, 2016, the Company incurred no such expenditures. During the three months ended June 30, 2015, the Company incurred approximately $1.4 million of such expenditures. During the six months ended June 30, 2016 and 2015, the Company incurred approximately $0.4 million and $2.4 million, respectively, of such expenditures and estimates additional expenditures of approximately $3.0 million to $5.0 million of capital expenditures and expenditures related to additional personnel and environmental studies through 2016 as a result of the implementation of these requirements. These capital investment requirements are incorporated into the Company’s annual capital expenditures budget and the Company does not expect any additional capital expenditures as a result of the required audits or required operational changes included in the Global Settlement to have a material adverse effect on the Company’s financial position or results of operations. The Company is contractually indemnified by Shell Oil Company (“Shell”), as successor to Pennzoil-Quaker State Company, and Atlas Processing Company, under an asset purchase agreement between the Company and Shell, for specified environmental liabilities arising from the operations of the Shreveport refinery prior to the Company’s acquisition of the facility. The Company believes the contractual indemnity is unlimited in amount and duration, but requires the Company to contribute $1.0 million of the first $5.0 million of indemnified costs for certain of the specified environmental liabilities. Bel-Ray Facility Bel-Ray executed an Administrative Consent Order (“ACO”) with the New Jersey Department of Environmental Protection, effective January 4, 1994, which required investigation and remediation of contamination at or emanating from the Bel-Ray facility. In 2000, Bel-Ray entered into a fixed price remediation contract with Weston Solutions (“Weston”), a large remediation contractor, whereby Weston agreed to be fully liable for the remediation of the soil and groundwater issues at the facility, including an offsite groundwater plume pursuant to the ACO (“Weston Agreement”). The Weston Agreement set up a trust fund to reimburse Weston, administered by Bel-Ray’s environmental counsel. As of June 30, 2016, the trust fund contained approximately $0.8 million. In addition, Weston has remediation cost containment insurance, should Weston be unable to complete the work required under the Weston Agreement. In connection with the acquisition of Bel-Ray, the Company became a party to the Weston Agreement. Weston has been addressing the environmental issues at the Bel-Ray facility over time, and the next phase will address the groundwater issues, which extend offsite. Renewable Identification Numbers Obligation The Company’s RINs Obligation represents a liability for the purchase of RINs to satisfy the EPA requirement to blend biofuels into the fuel products it produces pursuant to the RFS. RINs are assigned to biofuels produced in the U.S. as required by the EPA. The EPA sets annual quotas for the percentage of biofuels that must be blended into transportation fuels consumed in the U.S., and as a producer of motor fuels from petroleum, the Company is required to blend biofuels into the fuel products it produces at a rate that will meet the EPA’s annual quota. To the extent the Company is unable to blend biofuels at that rate, it must purchase RINs in the open market to satisfy the annual requirement. The Company’s RINs Obligation is based on the amount of RINs it must purchase net of amounts internally generated or purchased and the price of those RINs as of the balance sheet date. On June 28, 2016, the EPA granted certain of the Company’s refineries a “small refinery exemption” under the RFS for the full year 2014, as provided for under the Clean Air Act. In granting those exemptions, the EPA determined that for the full year 2014, compliance with the RFS would represent a “disproportionate economic hardship” for these refineries. As of June 30, 2016, the Company had a RINs Obligation of $114.7 million. RINs expense for the three and six months ended June 30, 2016, was $8.2 million and $25.0 million, respectively. As of June 30, 2015, the Company had a RINs Obligation of $41.5 million. RINs gain for the three and six months ended June 30, 2015, was $9.6 million and $2.3 million, respectively. Occupational Health and Safety The Company is subject to various laws and regulations relating to occupational health and safety, including OSHA and comparable state laws. These laws and regulations strictly govern the protection of the health and safety of employees. In addition, OSHA’s hazard communication standard requires that information be maintained about hazardous materials used or produced in the Company’s operations and that this information be provided to employees, contractors, state and local government authorities and customers. The Company maintains safety and training programs as part of its ongoing efforts to ensure compliance with applicable laws and regulations. The Company conducts periodic audits of Process Safety Management (“PSM”) systems at each of its locations subject to the PSM standard. The Company’s compliance with applicable health and safety laws and regulations has required, and continues to require, substantial expenditures. Changes in occupational safety and health laws and regulations or a finding of non-compliance with current laws and regulations could result in additional capital expenditures or operating expenses, as well as civil penalties and, in the event of a serious injury or fatality, criminal charges. The Company has completed studies to assess the adequacy of its PSM practices at its Shreveport refinery with respect to certain consensus codes and standards. During the three months ended June 30, 2016, the Company incurred no PSM related capital expenditures. During the three months ended June 30, 2015, the Company incurred $0.2 million of PSM related capital expenditures. During the six months ended June 30, 2016 and 2015, the Company incurred $0.3 million and $0.3 million, respectively, of related capital expenditures and expects to incur up to an additional $1.0 million during 2016 to address OSHA compliance issues identified in these studies. The Company expects these capital expenditures will enhance its equipment such that the equipment maintains compliance with applicable consensus codes and standards. In the first quarter of 2011, OSHA conducted an inspection of the Cotton Valley refinery’s PSM program. On March 14, 2011, OSHA issued a Citation and Notification of Penalty (the “Cotton Valley Citation”) to the Company as a result of the Cotton Valley inspection, which included a proposed penalty amount of $0.2 million. The Company has contested the Cotton Valley Citation and the parties have reached a tentative settlement with OSHA on the matter, which the Company does not believe will have a material adverse effect on its financial position or results of operations. Labor Matters The Company has employees covered by various collective bargaining agreements. The Company’s Cotton Valley facility collective bargaining agreement was ratified on April 1, 2016, and will expire on March 31, 2019. The Dickinson facility collective bargaining agreement was ratified on April 1, 2016, and will expire on March 31, 2019. The Missouri esters facility collective bargaining agreement was ratified on May 1, 2016, and will expire on April 30, 2017. The Shreveport refinery collective bargaining agreement was extended on May 1, 2016, until a new agreement is reached or is voided by either party with a 30-day written notice. Legal Proceedings The Company is subject to claims and litigation arising in the normal course of its business. The Company has recorded accruals with respect to certain of these matters, where appropriate, that are reflected in the condensed consolidated financial statements but are not, individually or in the aggregate, considered material. For other matters, the Company has not recorded accruals because it has not yet determined that a loss is probable or because the amount of loss cannot be reasonably estimated. While the ultimate outcome of claims and litigation currently pending cannot be determined, the Company currently does not expect that these proceedings and claims, individually or in the aggregate, will have a material adverse effect on its financial position, results of operations or cash flows. The outcome of any litigation is inherently uncertain, however, and if decided adversely to the Company, or if the Company determines that settlement of particular litigation is appropriate, the Company may be subject to liability that could have a material adverse effect on its financial position, results of operations or cash flows. Standby Letters of Credit The Company has agreements with various financial institutions for standby letters of credit which have been issued primarily to vendors. As of June 30, 2016 and December 31, 2015, the Company had outstanding standby letters of credit of $64.4 million and $66.8 million, respectively, under its senior secured revolving credit facility (the “revolving credit facility”). Refer to Note 7 for additional information regarding the Company’s revolving credit facility. At June 30, 2016 and December 31, 2015, the maximum amount of letters of credit the Company could issue under its revolving credit facility was subject to borrowing base limitations, with a maximum letter of credit sublimit equal to $600.0 million, which amount may be increased to 90% of revolver commitments in effect ($1.0 billion at June 30, 2016, and December 31, 2015) with the consent of the Agent (as defined below). As of June 30, 2016 and December 31, 2015, the Company had availability to issue letters of credit of $437.5 million and $233.5 million, respectively, under its revolving credit facility. |
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Long-Term Debt | Long-Term Debt Long-term debt consisted of the following (in millions):
Senior Notes 11.50% Senior Secured Notes (the “2021 Secured Notes”) On April 20, 2016, the Company issued and sold $400.0 million in aggregate principal amount of 11.50% Senior Secured Notes due January 15, 2021, in a private placement pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), to eligible purchasers at a discounted price of 98.273 percent of par. Subject to certain exceptions, the 2021 Secured Notes are secured by a lien on all of the fixed assets that secure the Company’s obligations under its secured hedge agreements, including certain present and future real property, fixtures and equipment; all U.S. registered patents and patent license rights, trademarks and trademark license rights, copyrights and copyright license rights and trade secrets; chattel paper, documents and instruments; certain cash deposits in the property, plant and equipment proceeds account; certain books and records; and all accessions and proceeds of any of the foregoing. The Company received net proceeds of approximately $383.2 million net of discount, initial purchasers’ fees and estimated expenses, which it used to repay borrowings outstanding under its revolving credit facility and for general partnership purposes, including planned capital expenditures at its facilities and working capital. Interest on the 2021 Secured Notes is paid semiannually in arrears on January 15 and July 15 of each year, beginning on July 15, 2016. At any time prior to April 15, 2018, the Company may on any one or more occasions redeem up to 35% of the aggregate principal amount of the 2021 Secured Notes with the net proceeds of a public or private equity offering at a redemption price of 111.5% of the principal amount, plus any accrued and unpaid interest to the date of redemption, provided that: (1) at least 65% of the aggregate principal amount of 2021 Secured Notes issued remains outstanding immediately after the occurrence of such redemption and (2) the redemption occurs within 180 days of the date of the closing of such public or private equity offering. On and after April 15, 2018, the Company may on any one or more occasions redeem all or a part of the 2021 Secured Notes at the redemption prices (expressed as percentages of principal amount) set forth below, plus any accrued and unpaid interest to the applicable redemption date on such 2021 Secured Notes, if redeemed during the twelve-month period beginning on April 15 of the years indicated below:
Prior to April 15, 2018, the Company may on any one or more occasions redeem all or part of the 2021 Secured Notes at a redemption price equal to the sum of: (1) the principal amount thereof, plus (2) a make-whole premium (as set forth in the indenture governing the 2021 Secured Notes) at the redemption date, plus any accrued and unpaid interest to the applicable redemption date. 7.75% Senior Notes (the “2023 Notes”) On March 27, 2015, the Company issued and sold $325.0 million in aggregate principal amount of 7.75% Senior Notes due April 15, 2023, in a private placement pursuant to Section 4(a)(2) of the Securities Act, to eligible purchasers at a discounted price of 99.257 percent of par. The Company received net proceeds of approximately $317.0 million net of discount, initial purchasers’ fees and expenses, which the Company used to fund the redemption of $178.8 million in aggregate principal amount of outstanding 9.625% senior notes due 2020 on April 28, 2015, to repay borrowings outstanding under its revolving credit facility and for general partnership purposes, including planned capital expenditures at the Company’s facilities and working capital. Interest on the 2023 Notes is paid semiannually in arrears on April 15 and October 15 of each year, beginning on October 15, 2015. On March 27, 2015, in connection with the issuance and sale of the 2023 Notes, the Company entered into a registration rights agreement with the initial purchasers of the 2023 Notes obligating the Company to use reasonable best efforts to file an exchange offer registration statement with the SEC, so that holders of the 2023 Notes can offer to exchange the 2023 Notes for registered notes having substantially the same terms as the 2023 Notes and evidencing the same indebtedness as the 2023 Notes. On December 11, 2015, the Company filed an exchange offer registration statement for the 2023 Notes with the SEC, which was declared effective on January 28, 2016. The exchange offer was completed on March 7, 2016, thereby fulfilling all of the requirements of the 2023 Notes registration rights agreement. 6.50% Senior Notes (the “2021 Notes”) On March 31, 2014, the Company issued and sold $900.0 million in aggregate principal amount of 6.50% Senior Notes due April 15, 2021, in a private placement pursuant to Section 4(a)(2) of the Securities Act, to eligible purchasers at par. The Company received net proceeds of approximately $884.0 million net of initial purchasers’ fees and expenses, which the Company used to fund the purchase price of ADF Holdings, Inc., the parent company of Anchor Drilling Fluids USA, Inc. (subsequently converted to ADF Holdings, LLC and Anchor Drilling Fluids USA, LLC), the redemption of $500.0 million in aggregate principal amount outstanding of 9.375% Senior Notes due 2019 (the “2019 Notes”) and for general partnership purposes, including planned capital expenditures at the Company’s facilities. Interest on the 2021 Notes is paid semiannually in arrears on April 15 and October 15 of each year, beginning on October 15, 2014. 7.625% Senior Notes (the “2022 Notes”) On November 26, 2013, the Company issued and sold $350.0 million in aggregate principal amount of 7.625% Senior Notes due January 15, 2022, in a private placement pursuant to Section 4(a)(2) of the Securities Act, to eligible purchasers at a discounted price of 98.494 percent of par. The Company received net proceeds of approximately $337.4 million, net of discount, initial purchasers’ fees and expenses, which the Company used for general partnership purposes, to fund previously announced organic growth projects, the purchase price of the Bel-Ray acquisition and the redemption of $100.0 million in aggregate principal amount outstanding of 9.375% Senior Notes due 2019. Interest on the 2022 Notes is paid semiannually in arrears on January 15 and July 15 of each year, beginning on July 15, 2014. 2021 Secured Notes, 2021 Notes, 2022 Notes and 2023 Notes In accordance with SEC Rule 3-10 of Regulation S-X, condensed consolidated financial statements of non-guarantors are not required. The Company has no assets or operations independent of its subsidiaries. Obligations under its 2021, 2022 and 2023 Notes are fully and unconditionally and jointly and severally guaranteed on a senior unsecured basis by the Company’s current 100%-owned operating subsidiaries and certain of the Company’s future operating subsidiaries, with the exception of the Company’s “minor” subsidiaries (as defined by Rule 3-10 of Regulation S-X), including Calumet Finance Corp. (100%-owned Delaware corporation that was organized for the sole purpose of being a co-issuer of certain of the Company’s indebtedness, including the 2021 Secured, 2021, 2022 and 2023 Notes). There are no significant restrictions on the ability of the Company or subsidiary guarantors for the Company to obtain funds from its subsidiary guarantors by dividend or loan. None of the subsidiary guarantors’ assets represent restricted assets pursuant to SEC Rule 4-08(e)(3) of Regulation S-X. The 2021 Secured, 2021, 2022 and 2023 Notes are subject to certain automatic customary releases, including the sale, disposition, or transfer of capital stock or substantially all of the assets of a subsidiary guarantor, designation of a subsidiary guarantor as unrestricted in accordance with the applicable indenture, exercise of legal defeasance option or covenant defeasance option, liquidation or dissolution of the subsidiary guarantor and a subsidiary guarantor ceases to both guarantee other Company debt and to be an obligor under the revolving credit facility. The Company’s operating subsidiaries may not sell or otherwise dispose of all or substantially all of their properties or assets to, or consolidate with or merge into, another company if such a sale would cause a default under the indentures governing the 2021 Secured, 2021, 2022 and 2023 Notes. The indentures governing the 2021 Secured, 2021, 2022 and 2023 Notes contain covenants that, among other things, restrict the Company’s ability and the ability of certain of the Company’s subsidiaries to: (i) sell assets; (ii) pay distributions on, redeem or repurchase the Company’s common units or redeem or repurchase its subordinated debt or, in the case of the 2021 Secured Notes, its unsecured notes; (iii) make investments; (iv) incur or guarantee additional indebtedness or issue preferred units; (v) create or incur certain liens; (vi) enter into agreements that restrict distributions or other payments from the Company’s restricted subsidiaries to the Company; (vii) consolidate, merge or transfer all or substantially all of the Company’s assets; (viii) engage in transactions with affiliates and (ix) create unrestricted subsidiaries. These covenants are subject to important exceptions and qualifications. At any time when the 2021, 2022 and 2023 Notes are rated investment grade by either Moody’s Investors Service, Inc. (“Moody’s”) or S&P Global Ratings (“S&P”) and no Default or Event of Default, each as defined in the indentures governing the 2021 Secured, 2021, 2022 and 2023 Notes, has occurred and is continuing, many of these covenants will be suspended. As of June 30, 2016, the Company’s Fixed Charge Coverage Ratio (as defined in the indentures governing the 2021 Secured, 2021, 2022 and 2023 Notes) was 0.8 to 1.0. As of June 30, 2016, the Company was in compliance with all covenants under the indentures governing the 2021 Secured, 2021, 2022 and 2023 Notes. Second Amended and Restated Senior Secured Revolving Credit Facility The Company has a $1.0 billion senior secured revolving credit facility, subject to borrowing base limitations, which includes a $500.0 million incremental uncommitted expansion feature. The revolving credit facility is the Company’s primary source of liquidity for cash needs in excess of cash generated from operations. The revolving credit facility matures in July 2019 and currently bears interest at a rate equal to either the prime rate plus a basis points margin or the London Interbank Offered Rate (“LIBOR”) plus a basis points margin, at the Company’s option. As of June 30, 2016, the margin was 75 basis points for prime rate loans and 175 basis points for LIBOR rate loans; however, the margin can fluctuate quarterly based on the Company’s average availability for additional borrowings under the revolving credit facility during the preceding fiscal quarter. In addition to paying interest quarterly on outstanding borrowings under the revolving credit facility, the Company is required to pay a commitment fee to the lenders under the revolving credit facility with respect to the unutilized commitments thereunder at a rate equal to 0.250% or 0.375% per annum, depending on the average daily available unused borrowing capacity for the preceding month. The Company also pays a customary letter of credit fee, including a fronting fee of 0.125% per annum of the stated amount of each outstanding letter of credit, and customary agency fees. The borrowing capacity as of June 30, 2016, under the revolving credit facility was $502.0 million. As of June 30, 2016, the Company had $0.1 million in outstanding borrowings under the revolving credit facility and outstanding standby letters of credit of $64.4 million, leaving $437.5 million available for additional borrowings based on specified availability limitations. Lenders under the revolving credit facility have a first priority lien on the Company’s accounts receivable, inventory and substantially all of its cash (collectively, the “Credit Agreement Collateral”). On April 20, 2016, the Company and certain of its operating subsidiaries as borrowers (collectively, the “Borrowers”) entered into a Second Amendment to Second Amended and Restated Credit Agreement (the “Second Amendment”), by and among the Borrowers, the Agent (as defined below) and the lenders party thereto (including Bank of America, N.A.), amending the Company’s revolving credit facility. The Second Amendment, among other things, amends the revolving credit facility to permit (a) the issuance of the 2021 Secured Notes pursuant to the indenture governing the 2021 Secured Notes and (b) such 2021 Secured Notes to be secured by a lien on the Fixed Asset Collateral (as defined in the Intercreditor Agreement), subject to the terms of the Intercreditor Agreement. The revolving credit facility contains various covenants that limit, among other things, the Company’s ability to: incur indebtedness; grant liens; dispose of certain assets; make certain acquisitions and investments; redeem or prepay other debt or make other restricted payments such as distributions to unitholders; enter into transactions with affiliates and enter into a merger, consolidation or sale of assets. Further, the revolving credit facility contains one springing financial covenant which provides that only if the Company’s availability under the revolving credit facility falls below the greater of (a) 12.5% of the Borrowing Base (as defined in the revolving credit agreement) then in effect and (b) $45.0 million (which amount is subject to increase in proportion to revolving commitment increases), then the Company will be required to maintain as of the end of each fiscal quarter a Fixed Charge Coverage Ratio (as defined in the revolving credit agreement) of at least 1.0 to 1.0. As of June 30, 2016, the Company was in compliance with all covenants under the revolving credit facility. Collateral Trust Agreement In connection with the private placement of the 2021 Secured Notes, on April 20, 2016, the Company entered into a collateral trust agreement (the “Collateral Trust Agreement”) which governs how the holders of the 2021 Secured Notes and secured hedging counterparties share collateral pledged as security for the payment obligations owed by it to the holders of the 2021 Secured Notes and secured hedging counterparties under their respective master derivatives contracts. The Collateral Trust Agreement limits to $150.0 million the extent to which forward purchase contracts for physical commodities are covered by, and secured under, the Collateral Trust Agreement and the Parity Lien Security Documents (as defined in the Collateral Trust Agreement). There is no such limit on financially settled derivative instruments used for commodity hedging. Subject to certain conditions set forth in the Collateral Trust Agreement, the Company has the ability to add secured hedging counterparties from time to time. Intercreditor Agreement The 2021 Secured Notes are not secured by the collateral securing the Company’s revolving credit facility. In connection with the offering of the 2021 Secured Notes, the Collateral Trustee entered into a Second Amended and Restated Intercreditor Agreement (the “Intercreditor Agreement”) among the Collateral Trustee, as fixed asset collateral trustee, Bank of America, N.A., as agent for the lenders under the Company’s revolving credit facility (in such capacity, the “Agent”), the Company and the other grantors named therein, providing for certain access and administrative agreements with respect to the Credit Agreement Collateral and the Fixed Asset Collateral (as defined in the Intercreditor Agreement). Maturities of Long-Term Debt As of June 30, 2016, principal payments on debt obligations and future minimum rentals on capital lease obligations are as follows (in millions):
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | Derivatives The Company is exposed to price risks due to fluctuations in the price of crude oil, refined products (primarily in the Company’s fuel products segment), natural gas and precious metals. The Company uses various strategies to reduce its exposure to commodity price risk. The strategies to reduce the Company’s risk utilize both physical forward contracts and financially settled derivative instruments, such as swaps, collars, options and futures, to attempt to reduce the Company’s exposure with respect to:
The Company manages its exposure to commodity markets, credit, volumetric and liquidity risks to manage its costs and volatility of cash flows as conditions warrant or opportunities become available. These risks may be managed in a variety of ways that may include the use of derivative instruments. Derivative instruments may be used for the purpose of mitigating risks associated with an asset, liability and anticipated future transactions and the changes in fair value of the Company’s derivative instruments will affect its earnings and cash flows; however, such changes should be offset by price or rate changes related to the underlying commodity or financial transaction that is part of the risk management strategy. The Company does not speculate with derivative instruments or other contractual arrangements that are not associated with its business objectives. Speculation is defined as increasing the Company’s natural position above the maximum position of its physical assets or trading in commodities, currencies or other risk bearing assets that are not associated with the Company’s business activities and objectives. The Company’s positions are monitored routinely by a risk management committee to ensure compliance with its stated risk management policy and documented risk management strategies. All strategies are reviewed on an ongoing basis by the Company’s risk management committee, which will add, remove or revise strategies in anticipation of changes in market conditions and/or in risk profiles. Such changes in strategies are to position the Company in relation to its risk exposures in an attempt to capture market opportunities as they arise. The Company recognizes all derivative instruments at their fair values (see Note 9) as either current assets or current liabilities in the condensed consolidated balance sheets. Fair value includes any premiums paid or received and unrealized gains and losses. Fair value does not include any amounts receivable from or payable to counterparties, or collateral provided to counterparties. Derivative asset and liability amounts with the same counterparty are netted against each other for financial reporting purposes. The Company’s financial results are subject to the possibility that changes in a derivative’s fair value could result in significant ineffectiveness and potentially no longer qualify portions or all of its derivative instruments for hedge accounting. The following tables summarize the Company’s gross fair values of its derivative instruments, presenting the impact of offsetting derivative assets in the Company’s condensed consolidated balance sheets as of June 30, 2016, and December 31, 2015 (in millions):
The following tables summarize the Company’s gross fair values of its derivative instruments, presenting the impact of offsetting derivative liabilities in the Company’s condensed consolidated balance sheets as of June 30, 2016, and December 31, 2015 (in millions):
The Company is exposed to credit risk in the event of nonperformance by its counterparties on these derivative transactions. The Company does not expect nonperformance on any derivative instruments, however, no assurances can be provided. The Company’s credit exposure related to these derivative instruments is represented by the fair value of contracts reported as derivative assets. As of June 30, 2016, the Company had three counterparties in which the derivatives held were net assets, totaling $4.9 million. As of December 31, 2015, the Company had no counterparties in which the derivatives held were net assets. To manage credit risk, the Company selects and periodically reviews counterparties based on credit ratings. The Company primarily executes its derivative instruments with large financial institutions that have ratings of at least Baa1 and BBB+ by Moody’s and S&P, respectively. In the event of default, the Company would potentially be subject to losses on derivative instruments with mark-to-market gains. The Company requires collateral from its counterparties when the fair value of the derivatives exceeds agreed upon thresholds in its master derivative contracts with these counterparties. No such collateral was held by the Company as of June 30, 2016, or December 31, 2015. The Company’s contracts with these counterparties allow for netting of derivative instruments executed under each contract. Collateral received from counterparties is reported in other current liabilities, and collateral held by counterparties is reported in deposits on the Company’s condensed consolidated balance sheets and is not netted against derivative assets or liabilities. As of June 30, 2016, and December 31, 2015, the Company had provided its counterparties with no collateral. For financial reporting purposes, the Company does not offset the collateral provided to a counterparty against the fair value of its obligation to that counterparty. Any outstanding collateral is released to the Company upon settlement of the related derivative instrument liability. Certain of the Company’s outstanding derivative instruments are subject to credit support agreements with the applicable counterparties which contain provisions setting certain credit thresholds above which the Company may be required to post agreed-upon collateral, such as cash or letters of credit, with the counterparty to the extent that the Company’s mark-to-market net liability, if any, on all outstanding derivatives exceeds the credit threshold amount per such credit support agreement. The majority of the credit support agreements covering the Company’s outstanding derivative instruments also contain a general provision stating that if the Company experiences a material adverse change in its business, in the reasonable discretion of the counterparty, the Company’s credit threshold could be lowered by such counterparty. The Company does not expect that it will experience a material adverse change in its business. The cash flow impact of the Company’s derivative activities is classified primarily as a change in derivative activity in the operating activities section in the unaudited condensed consolidated statements of cash flows. Derivative Instruments Designated as Cash Flow Hedges The Company accounts for certain derivatives hedging purchases of crude oil and sales of gasoline, diesel and jet fuel swaps as cash flow hedges. The derivative instruments designated as cash flow hedges that are hedging sales and purchases are recorded to sales and cost of sales, respectively, in the unaudited condensed consolidated statements of operations upon recording the related hedged transaction in sales or cost of sales. The Company assesses, both at inception of the cash flow hedge and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. Periodically, the Company may enter into crude oil and fuel product basis swaps to more effectively hedge its crude oil purchases, crude oil sales and fuel products sales. These derivatives can be combined with a swap contract in order to create a more effective cash flow hedge. To the extent a derivative instrument designated as a cash flow hedge is determined to be effective as a cash flow hedge of an exposure to changes in the fair value of a future transaction, the change in fair value of the derivative is deferred in accumulated other comprehensive income (loss), a component of partners’ capital in the condensed consolidated balance sheets, until the underlying transaction hedged is recognized in the unaudited condensed consolidated statements of operations. Ineffectiveness is inherent in the hedging of crude oil and fuel products. Due to the volatility in the markets for crude oil and fuel products, the Company is unable to predict the amount of ineffectiveness each period, determined on a derivative by derivative basis or in the aggregate for a specific commodity, and has the potential for the future loss of cash flow hedge accounting. Ineffectiveness has resulted, and the loss of cash flow hedge accounting has resulted, in increased volatility in the Company’s financial results. However, even though certain derivative instruments may not qualify for cash flow hedge accounting, the Company intends to continue to utilize such instruments as management believes such derivative instruments continue to provide the Company with the opportunity to more effectively stabilize cash flows. Cash flow hedge accounting is discontinued when it is determined that a derivative no longer qualifies as an effective hedge or when it is no longer probable that the hedged forecasted transaction will occur. When cash flow hedge accounting is discontinued because the derivative instrument no longer qualifies as an effective cash flow hedge, the derivative instrument is subject to the mark-to-market method of accounting prospectively. Changes in the mark-to-market fair value of the derivative instrument are recorded to unrealized gain (loss) on derivative instruments in the unaudited condensed consolidated statements of operations. Unrealized gains and losses related to discontinued cash flow hedges that were previously deferred in accumulated other comprehensive income (loss) will remain in accumulated other comprehensive income (loss) until the underlying transaction is reflected in earnings, unless it is probable that the hedged forecasted transaction will not occur, at which time, associated deferred amounts in accumulated other comprehensive income (loss) are immediately recognized in unrealized gain (loss) on derivative instruments in the unaudited condensed consolidated statements of operations. The Company recorded the following amounts in its condensed consolidated balance sheets, unaudited condensed consolidated statements of operations, unaudited condensed consolidated statements of comprehensive income (loss) and unaudited condensed consolidated statements of partners’ capital as of and for the three months ended June 30, 2016 and 2015, related to its derivative instruments that were designated as cash flow hedges (in millions):
The Company recorded the following amounts in its condensed consolidated balance sheets, unaudited condensed consolidated statements of operations, unaudited condensed consolidated statements of comprehensive income (loss) and unaudited condensed consolidated statements of partners’ capital as of and for the six months ended June 30, 2016 and 2015, related to its derivative instruments that were designated as cash flow hedges (in millions):
The effective portion of the cash flow hedges classified in accumulated other comprehensive loss was gains of $2.0 million and $6.4 million as of June 30, 2016, and December 31, 2015, respectively. Absent a change in the fair market value of the underlying transactions, except for any underlying transactions pertaining to the payment of interest on existing financial instruments, the following other comprehensive income at June 30, 2016, will be reclassified to earnings by December 31, 2016, with balances being recognized as follows (in millions):
Derivative Instruments Designated as Fair Value Hedges For derivative instruments that are designated and qualify as a fair value hedge (which are limited to interest rate swaps), the effective gain or loss on the derivative instrument, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized as interest expense in the unaudited condensed consolidated statements of operations. No hedge ineffectiveness is recognized if the interest rate swap qualifies for the “shortcut” method and, as a result, changes in the fair value of the derivative instrument offset the changes in the fair value of the underlying hedged debt. In addition, the differential to be paid or received on the interest rate swap arrangement is accrued and recognized as an adjustment to interest expense in the unaudited condensed consolidated statements of operations. The Company assesses at the inception of the fair value hedge whether the derivatives that are used in the hedging transactions are highly effective in offsetting changes in fair values of hedged items. Fair value hedge accounting is discontinued when it is determined that a derivative no longer qualifies as an effective hedge or when it is no longer probable that the hedged forecasted transaction will occur. When fair value hedge accounting is discontinued because the derivative instrument no longer qualifies as an effective fair value hedge, the derivative instrument is still subject to mark-to-market method of accounting, however the Company will cease to adjust the hedged asset or liability for changes in fair value. In 2014, the Company entered into an interest rate swap agreement which converted a portion of the Company’s fixed rate debt to a floating rate. This agreement involved the receipt of fixed rate amounts in exchange for floating rate interest payments over the life of the agreement without an exchange of the underlying principal amount. Also, in connection with the interest rate swap agreement, the Company entered into an option that permits the counterparty to cancel the interest rate swap for a specified premium. The Company designated this interest rate swap and option as a fair value hedge. On January 13, 2015, the Company terminated its interest rate swap, which was designated as a fair value hedge, related to a notional amount of $200.0 million of 2022 Notes. In settlement of this swap, the Company recognized a net gain of approximately $3.3 million. The Company recorded the following gains (losses) in its unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2016 and 2015, related to its derivative instrument designated as a fair value hedge (in millions):
Derivative Instruments Not Designated as Hedges For derivative instruments not designated as hedges, the change in fair value of the asset or liability for the period is recorded to unrealized gain (loss) on derivative instruments in the unaudited condensed consolidated statements of operations. Upon the settlement of a derivative not designated as a hedge, the gain or loss at settlement is recorded to realized gain (loss) on derivative instruments in the unaudited condensed consolidated statements of operations. The Company has entered into crude oil basis swaps that do not qualify as cash flow hedges for accounting purposes as they were not entered into simultaneously with a corresponding NYMEX WTI derivative contract. Additionally, the Company has entered into natural gas collars, natural gas swaps and certain other crude oil swaps that do not qualify as cash flow hedges for accounting purposes as they are determined not to be highly effective in offsetting changes in the cash flows associated with crude oil purchases and gasoline and diesel sales at the Company’s refineries. The amount reclassified from accumulated other comprehensive loss into earnings, as a result of the discontinuance of cash flow hedge accounting for certain crude oil, gasoline, jet fuel and diesel derivative instruments at the Shreveport refinery because it was no longer probable that the original forecasted transaction would occur by the end of the originally specified time period, caused the Company to recognize the following gains in the unaudited condensed consolidated statements of operations for the six months ended June 30, 2016 and 2015 (in millions):
The Company recorded the following gains (losses) in its unaudited condensed consolidated statements of operations for the three months ended June 30, 2016 and 2015, related to its derivative instruments not designated as hedges (in millions):
The Company recorded the following gains (losses) in its unaudited condensed consolidated statements of operations for the six months ended June 30, 2016 and 2015, related to its derivative instruments not designated as hedges (in millions):
Derivative Positions — Specialty Products Segment Natural Gas Swap Contracts At June 30, 2016, the Company had the following derivatives related to natural gas purchases in its specialty products segment, none of which are designated as hedges:
At December 31, 2015, the Company had the following derivatives related to natural gas purchases in its specialty products segment, none of which are designated as hedges:
Natural Gas Collars At June 30, 2016, the Company had the following derivatives related to natural gas purchases in its specialty products segment, none of which are designated as hedges:
At December 31, 2015, the Company had the following derivatives related to natural gas purchases in its specialty products segment, none of which are designated as hedges:
Derivative Positions — Fuel Products Segment Crude Oil Swap Contracts At June 30, 2016, the Company had the following derivatives related to crude oil purchases in its fuel products segment, none of which are designated as hedges:
At June 30, 2016, the Company had the following derivatives related to crude oil sales in its fuel products segment, none of which are designated as hedges:
At December 31, 2015, the Company had the following derivatives related to crude oil purchases in its fuel products segment, none of which are designated as hedges:
Crude Oil Basis Swap Contracts The Company has entered into crude oil basis swaps to mitigate the risk of future changes in pricing differentials between LLS and NYMEX WTI. At June 30, 2016, the Company had the following derivatives related to crude oil basis swaps in its fuel products segment, none of which are designated as hedges:
At December 31, 2015, the Company had the following derivatives related to crude oil basis swaps in its fuel products segment, none of which are designated as hedges:
The Company has entered into crude oil basis swaps to mitigate the risk of future changes in pricing differentials between WCS and NYMEX WTI. At June 30, 2016, the Company had the following derivatives related to crude oil basis swaps in its fuel products segment, none of which are designated as hedges:
At December 31, 2015, the Company had the following derivatives related to crude oil basis swaps in its fuel products segment, none of which are designated as hedges:
Crude Oil Percentage Basis Swap Contracts The Company has entered into derivative instruments to secure a percentage differential of WCS crude oil to NYMEX WTI. At June 30, 2016, the Company had the following derivatives related to crude oil percentage basis swaps in its fuel products segment, none of which are designated as hedges:
At December 31, 2015, the Company had the following derivatives related to crude oil percentage basis swaps in its fuel products segment, none of which are designated as hedges:
Crude Oil Option Contracts The Company has entered into derivative instruments to mitigate the risk of future changes in the price of NYMEX WTI crude oil. At June 30, 2016, the Company had the following derivatives related to crude oil call option purchases in its fuel products segment, none of which are designated as hedges:
At December 31, 2015, the Company had the following derivatives related to crude oil call option purchases in its fuel products segment, none of which are designated as hedges:
Gasoline Crack Spread Swap Contracts At December 31, 2015, the Company had the following derivatives related to gasoline crack spread sales in its fuel products segment, none of which are designated as hedges:
Natural Gas Swap Contracts At June 30, 2016, the Company had the following derivatives related to natural gas purchases in its fuel products segment, none of which are designated as hedges:
At December 31, 2015, the Company had the following derivatives related to natural gas purchases in its fuel products segment, none of which are designated as hedges:
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements The Company uses a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. Observable inputs are from sources independent of the Company. Unobservable inputs reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. These tiers include the following:
In determining fair value, the Company uses various valuation techniques and prioritizes the use of observable inputs. The availability of observable inputs varies from instrument to instrument and depends on a variety of factors including the type of instrument, whether the instrument is actively traded and other characteristics particular to the instrument. For many financial instruments, pricing inputs are readily observable in the market, the valuation methodology used is widely accepted by market participants and the valuation does not require significant management judgment. For other financial instruments, pricing inputs are less observable in the marketplace and may require management judgment. Recurring Fair Value Measurements Derivative Assets and Liabilities Derivative instruments are reported in the accompanying unaudited condensed consolidated financial statements at fair value. The Company’s derivative instruments consist of over-the-counter (“OTC”) contracts, which are not traded on a public exchange. Substantially all of the Company’s derivative instruments are with counterparties that have long-term credit ratings of at least Baa1 and BBB+ by Moody’s and S&P, respectively. To estimate the fair values of the Company’s commodity derivative instruments, the Company uses the forward rate, the strike price, contractual notional amounts, the risk free rate of return and contract maturity. To estimate the fair value of the Company’s fixed-to-floating interest rate swap derivative instrument, the Company uses discounted cash flows, which use observable inputs such as maturity and market interest rates. Various analytical tests are performed to validate the counterparty data. The fair values of the Company’s derivative instruments are adjusted for nonperformance risk and creditworthiness of the hedging entities through the Company’s credit valuation adjustment (“CVA”). The CVA is calculated at the counterparty level utilizing the fair value exposure at each payment date and applying a weighted probability of the appropriate survival and marginal default percentages. The Company uses the counterparty’s marginal default rate and the Company’s survival rate when the Company is in a net asset position at the payment date and uses the Company’s marginal default rate and the counterparty’s survival rate when the Company is in a net liability position at the payment date. As a result of applying the applicable CVA at June 30, 2016, the Company’s net asset was increased by approximately $0.6 million and net liability was reduced by approximately $0.8 million. As a result of applying the CVA at December 31, 2015, the Company’s net liability was reduced by approximately $1.2 million. Observable inputs utilized to estimate the fair values of the Company’s derivative instruments were based primarily on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets. Based on the use of various unobservable inputs, principally non-performance risk, creditworthiness of the hedging entities and unobservable inputs in the forward rate, the Company has categorized these derivative instruments as Level 3. Significant increases (decreases) in any of those unobservable inputs in isolation would result in a significantly lower (higher) fair value measurement. The Company believes it has obtained the most accurate information available for the types of derivative instruments it holds. See Note 8 for further information on derivative instruments. Pension Assets Pension assets are reported at fair value in the accompanying unaudited condensed consolidated financial statements. At June 30, 2016, the Company’s investments associated with its pension plan (as such term is hereinafter defined) primarily consisted of mutual funds. The mutual funds are categorized as Level 2 because inputs used in their valuation are not quoted prices in active markets that are indirectly observable and are valued at the net asset value (“NAV”) of shares in each fund held by the pension plan at quarter end as provided by the third-party administrator. Plan investments can be redeemed within a short time frame (10 or so business days), if requested. See Note 11 for further information on pension assets. Renewable Identification Numbers Obligation The RINs Obligation is categorized as Level 2 and is measured at fair value using the market approach based on quoted prices from an independent pricing service. See Note 6 for further information on the Company’s RINs Obligation. Hierarchy of Recurring Fair Value Measurements The Company’s recurring assets and liabilities measured at fair value at June 30, 2016, and December 31, 2015, were as follows (in millions):
The table below sets forth a summary of net changes in fair value of the Company’s Level 3 financial assets and liabilities for the six months ended June 30, 2016 and 2015 (in millions):
All settlements from derivative instruments designated as cash flow hedges and deemed “effective” are included in sales for gasoline, diesel and jet fuel derivatives, and cost of sales for crude oil derivatives in the unaudited condensed consolidated statements of operations in the period that the hedged cash flow occurs. Any “ineffectiveness” associated with these settlements from derivative instruments designated as cash flow hedges are recorded in earnings in realized gain (loss) on derivative instruments in the unaudited condensed consolidated statements of operations. All settlements from derivative instruments designated as fair value hedges are accrued and recorded as an adjustment to interest expense in the unaudited condensed consolidated statements of operations. All settlements from derivative instruments not designated as hedges are recorded in realized gain (loss) on derivative instruments in the unaudited condensed consolidated statements of operations. See Note 8 for further information on derivative instruments. Nonrecurring Fair Value Measurements Certain nonfinancial assets and liabilities are measured at fair value on a nonrecurring basis and are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment. Assets and liabilities acquired in business combinations are recorded at their fair value as of the date of acquisition. The Company reviews for goodwill impairment annually on October 1 and whenever events or changes in circumstances indicate its carrying value may not be recoverable. The fair value of the reporting units is determined using the income approach. The income approach focuses on the income-producing capability of an asset, measuring the current value of the asset by calculating the present value of its future economic benefits such as cash earnings, cost savings, corporate tax structure and product offerings. Value indications are developed by discounting expected cash flows to their present value at a rate of return that incorporates the risk-free rate for the use of funds, the expected rate of inflation and risks associated with the reporting unit. These assets would generally be classified within Level 3, in the event that the Company were required to measure and record such assets at fair value within its unaudited condensed consolidated financial statements. See Note 5 for further information on goodwill impairment. The Company periodically evaluates the carrying value of long-lived assets to be held and used, including indefinite-lived intangible assets and property plant and equipment, when events or circumstances warrant such a review. Fair value is determined primarily using anticipated cash flows assumed by a market participant discounted at a rate commensurate with the risk involved and these assets would generally be classified within Level 3, in the event that the Company was required to measure and record such assets at fair value within its unaudited condensed consolidated financial statements. Estimated Fair Value of Financial Instruments Cash The carrying value of cash is considered to be representative of its fair value. Debt The estimated fair value of long-term debt at June 30, 2016, and December 31, 2015, consists primarily of the senior notes. The estimated aggregate fair value of the Company’s senior notes defined as Level 1 was based upon quoted market prices in an active market. The estimated aggregate fair value of the Company’s senior notes classified as Level 2 was based upon directly observable inputs. The carrying value of borrowings, if any, under the Company’s revolving credit facility, capital lease obligations and related party note payable approximate their fair values as determined by discounted cash flows and are classified as Level 3. See Note 7 for further information on long-term debt. The Company’s carrying and estimated fair value of the Company’s financial instruments, carried at adjusted historical cost, at June 30, 2016, and December 31, 2015, were as follows (in millions):
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Partners' Capital |
6 Months Ended |
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Jun. 30, 2016 | |
Partners' Capital [Abstract] | |
Partners' Capital | Partners’ Capital The Company entered into an Equity Placement Agreement with various sales agents under which the Company issued and sold, from time to time, common units representing limited partner interests, having an aggregate offering price of up to $300.0 million through one or more sales agents. The Equity Placement Agreement expired in May 2016. The Equity Placement Agreement provided the Company the right, but not the obligation, to sell common units on an ongoing basis, at prices the Company deemed appropriate. These sales were made pursuant to the terms of the Equity Placement Agreement between the Company and the sales agents. The net proceeds from any sales under this agreement were used for general partnership purposes, including, among other things, repayment of indebtedness, working capital and capital expenditures. The Company’s general partner contributed its proportionate capital contribution to retain its 2% general partner interest. The Company had no sales of its common units during the three and six months ended June 30, 2016, and the three months ended June 30, 2015. For the six months ended June 30, 2015, the Company sold 307,985 common units for net proceeds of approximately $7.6 million. Underwriting discounts totaled approximately $0.1 million, and the Company’s general partner contributed $0.2 million to maintain its general partner interest. The Company’s distribution policy is defined in its partnership agreement. In April 2016, Calumet GP, LLC’s Board of Directors determined to suspend payment of the Company’s quarterly cash distribution. Calumet GP, LLC’s Board of Directors will continue to evaluate the Company’s ability to reinstate the distribution. For the three months ended June 30, 2016, the Company made no distributions to its partners. For the three months ended June 30, 2015, the Company made distributions of $57.3 million, to its partners. In the six months ended June 30, 2016 and 2015, the Company made distributions of $57.4 million and $110.0 million, respectively, to its partners. For the three and six months ended June 30, 2016, the general partner was allocated no incentive distribution rights. For the three and six months ended June 30, 2015, the general partner was allocated $4.2 million and $8.4 million, respectively, in incentive distribution rights. |
Employee Benefit Plans |
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans | Employee Benefit Plans The components of net periodic benefit cost (income) for the three and six months ended June 30, 2016 and 2015, were as follows (in millions):
At June 30, 2016, and December 31, 2015, the Company’s investments associated with its pension plan primarily consisted of (i) cash and cash equivalents and (ii) mutual funds. The mutual funds are categorized as Level 2 because inputs used in their valuation are not quoted prices in active markets that are indirectly observable and are valued at the NAV of shares in each fund held by the pension plan at quarter end as provided by the third-party administrator. See Note 9 for the definitions of Levels 1, 2 and 3. The Company’s pension plan assets measured at fair value at June 30, 2016, and December 31, 2015, were as follows (in millions):
Investment Fund Strategies Domestic equity funds include funds that invest in U.S. common and preferred stocks. Foreign equity funds invest in securities issued by companies listed on international stock exchanges. Certain funds have value and growth objectives and managers may attempt to profit from security mispricing in equity markets to meet these objectives. Short-term investments (including commercial paper, certificates of deposits and government repurchase agreements) and derivatives may be used for hedging purposes to limit exposure to various risk factors. Fixed income funds invest in U.S. dollar-denominated, investment grade bonds, including U.S. Treasury and government agency securities, corporate bonds and mortgage and asset-backed securities. These funds may also invest in any combination of non-investment grade bonds, non-U.S. dollar-denominated bonds and bonds issued by issuers in emerging capital markets. Short-term investments (including commercial paper, certificates of deposits and government repurchase agreements) and derivatives may be used for hedging purposes to limit exposure to various risk factors. |
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Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Loss The table below sets forth a summary of reclassification adjustments out of accumulated other comprehensive income (loss) in the Company’s unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2016 and 2015 (in millions):
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Earnings Per Unit |
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Earnings Per Unit [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Unit | Earnings Per Unit The following table sets forth the computation of basic and diluted earnings per limited partner unit for the three and six months ended June 30, 2016 and 2015 (in millions, except unit and per unit data):
(1) Total diluted weighted average limited partner units outstanding excludes 0.1 million and 0.2 million of dilutive phantom units for the three and six months ended June 30, 2016, respectively. Total diluted weighted average limited partner units outstanding excludes 0.1 million of dilutive phantom units for the three months ended June 30, 2015. |
Segments and Related Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segments and Related Information | Segments and Related Information a. Segment Reporting The Company manages its business in multiple operating segments, which are grouped on the basis of similar product, market and operating factors into the following reportable segments:
The accounting policies of the reporting segments are the same as those described in the summary of significant accounting policies as disclosed in Note 2 — “Summary of Significant Accounting Policies” in Part II, Item 8 “Financial Statements and Supplementary Data” of the Company’s 2015 Annual Report, except that the disaggregated financial results for the reporting segments have been prepared using a management approach, which is consistent with the basis and manner in which management internally disaggregates financial information for the purposes of assisting internal operating decisions. The Company accounts for intersegment sales and transfers at cost plus a specified mark-up. The Company evaluates performance based upon Adjusted EBITDA (a non-GAAP financial measure). The Company defines Adjusted EBITDA for any period as: (1) net income (loss) plus (2)(a) interest expense; (b) income taxes; (c) depreciation and amortization; (d) impairment; (e) unrealized losses from mark to market accounting for hedging activities; (f) realized gains under derivative instruments excluded from the determination of net income (loss); (g) non-cash equity based compensation expense and other non-cash items (excluding items such as accruals of cash expenses in a future period or amortization of a prepaid cash expense) that were deducted in computing net income (loss); (h) debt refinancing fees, premiums and penalties; (i) any net loss realized in connection with an asset sale that was deducted in computing net income (loss) and (j) all extraordinary, unusual or non-recurring items of gain or loss, or revenue or expense; minus (3)(a) unrealized gains from mark to market accounting for hedging activities; (b) realized losses under derivative instruments excluded from the determination of net income (loss) and (c) other non-recurring expenses and unrealized items that reduced net income (loss) for a prior period, but represent a cash item in the current period. The Company manages its assets on a total company basis, not by segment. Therefore, management does not review any asset information by segment and, accordingly, the Company does not report asset information by segment. Reportable segment information for the three and six months ended June 30, 2016 and 2015, is as follows (in millions):
b. Geographic Information International sales accounted for less than 10% of consolidated sales in each of the three and six months ended June 30, 2016 and 2015. Substantially all of the Company’s long-lived assets are domestically located. c. Product Information The Company offers specialty products primarily in categories consisting of lubricating oils, solvents, waxes, packaged and synthetic specialty products and other. Fuel products categories primarily consist of gasoline, diesel, jet fuel, asphalt, heavy fuel oils and other. All oilfield services products are consolidated in a standalone category. The following table sets forth the major product category sales for the three months ended June 30, 2016 and 2015 (dollars in millions):
The following table sets forth the major product category sales for the six months ended June 30, 2016 and 2015 (dollars in millions):
d. Major Customers During the three and six months ended June 30, 2016 and 2015, the Company had no customer that represented 10% or greater of consolidated sales. e. Major Suppliers During the three months ended June 30, 2016 and 2015, the Company had two suppliers that supplied approximately 60.7% and 49.5%, respectively, of its crude oil supply. During the six months ended June 30, 2016 and 2015, the Company had two suppliers that supplied approximately 57.0% and 48.8%, respectively, of its crude oil supply. |
Subsequent Events |
6 Months Ended |
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Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The fair value of the Company’s derivatives that were outstanding as of June 30, 2016, decreased by approximately $18.0 million subsequent to June 30, 2016, to a net liability of approximately $24.0 million. The fair value of the Company’s senior notes has decreased by approximately $11.0 million subsequent to June 30, 2016. |
Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||
RINS Obligation [Policy Text Block] | The Company’s RINs obligation (“RINs Obligation”) represents a liability for the purchase of RINs to satisfy the U.S. EPA requirement to blend biofuels into the fuel products it produces pursuant to the EPA’s RFS. RINs are assigned to biofuels produced in the U.S. as required by the EPA. The EPA sets annual quotas for the percentage of biofuels that must be blended into transportation fuels consumed in the U.S. and, as a producer of motor fuels from petroleum, the Company is required to blend biofuels into the fuel products it produces at a rate that will meet the EPA’s annual quota. To the extent the Company is unable to blend biofuels at that rate, it must purchase RINs in the open market to satisfy the annual requirement. The Company’s RINs Obligation is based on the amount of RINs it must purchase and the price of those RINs as of the balance sheet date. The Company uses the inventory model to account for RINs, measuring acquired RINs at weighted-average cost. The cost of RINs used each period is charged to cost of sales with cash inflows and outflows recorded in the operating cash flow section of the unaudited condensed consolidated statements of cash flows. Excess RINs are classified as inventory in the condensed consolidated balance sheets. The Company recognizes a liability at the end of each reporting period in which the Company does not have sufficient RINs to cover the RINs Obligation. The liability is calculated by multiplying the RINs shortage (based on actual results) by the period end RIN spot price. From time to time, the Company holds varying amounts of RINs for resale. RINs obtained from third parties are initially recorded at their cost at the time the Company acquires them and are subsequently revalued at the lower of cost or market as of the last day of each accounting period and the resulting adjustments are reflected in costs of goods sold for the period. The value of RINs obtained from third parties would be reflected in prepaid expenses and other assets on the consolidated balance sheets. |
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Basis of Accounting | The unaudited condensed consolidated financial statements of the Company as of June 30, 2016, and for the three and six months ended June 30, 2016 and 2015, included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and disclosures normally included in the consolidated financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) in the U.S. have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the following disclosures are adequate to make the information presented not misleading. These unaudited condensed consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary to present fairly the results of operations for the interim periods presented. All adjustments are of a normal nature, unless otherwise disclosed. The results of operations for the three and six months ended June 30, 2016, are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s 2015 Annual Report. |
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New Accounting Pronouncements | New Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Compensation — Stock Compensation (Topic 606): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. Under the new standard, income tax benefits and deficiencies are to be recognized as income tax expense or benefit in the income statement and the tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. Excess tax benefits should be classified along with other income tax cash flows as an operating activity. In regards to forfeitures, the entity may make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. The amendments in this standard are effective for fiscal years (including interim periods) beginning after December 15, 2016, with early adoption permitted. The adoption of ASU 2016-09 is not expected to have an impact on the Company’s condensed consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-07, Investments — Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting (“ASU 2016-07”), which eliminates the retroactive adjustments to an investment upon it qualifying for the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence by the investor. ASU 2016-07 requires that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment qualifies for equity method accounting. The amendments in this standard are effective for fiscal years (including interim periods) beginning after December 15, 2016, with early adoption permitted. The adoption of ASU 2016-07 is not expected to have an impact on the Company’s condensed consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments (“ASU 2016-06”). ASU 2016-06 simplifies the embedded derivative analysis for debt instruments containing contingent call or put options by removing the requirement to assess whether a contingent event is related to interest rates or credit risks. The amendments in this standard are effective for fiscal years (including interim periods) beginning after December 15, 2016, with early adoption permitted. The adoption of ASU 2016-06 is not expected to have an impact on the Company’s condensed consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships (“ASU 2016-05”). ASU 2016-05 clarifies that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument under Topic 815 does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The amendments in this standard are effective for fiscal years (including interim periods) beginning after December 15, 2016, with early adoption permitted. An entity can elect to adopt the amendments of ASU 2016-05 on either a prospective or modified retrospective basis. The adoption of ASU 2016-05 is not expected to have an impact on the Company’s condensed consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which supersedes the lease accounting requirements in Accounting Standards Codification (“ASC”) Topic 840, Leases. ASU 2016-02 provides principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than twelve months regardless of classification. Leases with a term of twelve months or less will be accounted for similar to existing guidance for operating leases. The amendments in this standard are effective for fiscal years (including interim periods) beginning after December 15, 2018, with early adoption permitted and modified retrospective application required. The Company is currently evaluating the impact of this standard on its condensed consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). ASU 2016-01 requires that (i) equity investments in unconsolidated entities that are not accounted for under the equity method of accounting generally be measured at fair value with changes recognized in net income (loss) and (ii) when the fair value option has been elected for financial liabilities, changes in fair value due to instrument-specific credit risk be recognized separately in other comprehensive income (loss). Additionally, ASU 2016-01 changes the presentation and disclosure requirements for financial instruments. The amendments in this standard are effective for fiscal years (including interim periods) beginning after December 15, 2017, with early adoption not permitted. The Company is currently evaluating the impact of this standard on its condensed consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition. ASU 2014-09 is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 was originally effective for fiscal years (including interim periods) beginning after December 15, 2016. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which defers the effective date by one year, with early adoption permitted as of the original effective date. ASU 2014-09 allows for either a full retrospective or a modified retrospective transition method. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606) — Principal versus Agent Considerations (“ASU 2016-08”). ASU 2016-08 provides clarifying guidance regarding the application of ASU 2014-09 when another party, along with the reporting entity, is involved in providing a good or a service to a customer. In these circumstances, an entity is required to determine whether the nature of its promise is to provide that good or service to the customer (that is, the entity is a principal) or to arrange for the good or service to be provided to the customer by the other party (that is, the entity is an agent). ASU 2016-08 clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606) — Identifying Performance Obligations and Licensing (“ASU 2016-10”). ASU 2016-10 further amends the guidance with respect to certain implementation issues on identifying performance obligations and accounting for licenses of intellectual property. In May 2016, the FASB issued ASU No. 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815) — Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016, EITF Meeting (“ASU 2016-11”). The amendments in ASU 2016-11 rescinded certain SEC Staff Observer comments that are codified, effective upon the adoption of ASU 2014-09. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606) — Narrow-Scope Improvements and Practical Expedients (“ASU 2016-12”). The amendments in ASU 2016-12 address certain issues identified in the guidance on assessing collectibility, presentation of sales taxes, non-cash consideration and completed contracts and contract modifications at transition. Companies are permitted to either apply the requirements retrospectively to all prior periods presented or apply the requirements in the year of adoption through a cumulative adjustment. The amendments in these standards, along with ASU 2014-09, are effective for fiscal years (including interim periods) beginning after December 15, 2017. The Company is currently evaluating the impact of these standards on its condensed consolidated financial statements. |
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Inventories | Under the LIFO method, the most recently incurred costs are charged to cost of sales and inventories are valued at the earliest acquisition costs. In addition, the use of the LIFO inventory method may result in increases or decreases to cost of sales in years that inventory volumes decline as the result of charging cost of sales with LIFO inventory costs generated in prior periods. In periods of rapidly declining prices, LIFO inventories may have to be written down to market value due to the higher costs assigned to LIFO layers in prior periods. Such write downs are subject to reversal in subsequent periods, not to exceed LIFO cost, if prices recover. During the three months ended June 30, 2016 and 2015, the Company recorded $36.3 million and $12.4 million of gains, respectively, in cost of sales in the condensed consolidated statements of operations due to the lower of cost or market (“LCM”) valuation. During the six months ended June 30, 2016 and 2015, the Company recorded $44.4 million of gains and $0.8 million of losses, respectively, in cost of sales in the condensed consolidated statements of operations due to the LCM valuation. The cost of inventory is recorded using the last-in, first-out (“LIFO”) method. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and costs and are subject to the final year-end LIFO inventory valuation. Costs include crude oil and other feedstocks, labor, processing costs and refining overhead costs. Inventories are valued at the lower of cost or market value. |
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Derivatives | The cash flow impact of the Company’s derivative activities is classified primarily as a change in derivative activity in the operating activities section in the unaudited condensed consolidated statements of cash flows. Derivative Instruments Designated as Cash Flow Hedges The Company accounts for certain derivatives hedging purchases of crude oil and sales of gasoline, diesel and jet fuel swaps as cash flow hedges. The derivative instruments designated as cash flow hedges that are hedging sales and purchases are recorded to sales and cost of sales, respectively, in the unaudited condensed consolidated statements of operations upon recording the related hedged transaction in sales or cost of sales. The Company assesses, both at inception of the cash flow hedge and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. Periodically, the Company may enter into crude oil and fuel product basis swaps to more effectively hedge its crude oil purchases, crude oil sales and fuel products sales. These derivatives can be combined with a swap contract in order to create a more effective cash flow hedge. To the extent a derivative instrument designated as a cash flow hedge is determined to be effective as a cash flow hedge of an exposure to changes in the fair value of a future transaction, the change in fair value of the derivative is deferred in accumulated other comprehensive income (loss), a component of partners’ capital in the condensed consolidated balance sheets, until the underlying transaction hedged is recognized in the unaudited condensed consolidated statements of operations. Ineffectiveness is inherent in the hedging of crude oil and fuel products. Due to the volatility in the markets for crude oil and fuel products, the Company is unable to predict the amount of ineffectiveness each period, determined on a derivative by derivative basis or in the aggregate for a specific commodity, and has the potential for the future loss of cash flow hedge accounting. Ineffectiveness has resulted, and the loss of cash flow hedge accounting has resulted, in increased volatility in the Company’s financial results. However, even though certain derivative instruments may not qualify for cash flow hedge accounting, the Company intends to continue to utilize such instruments as management believes such derivative instruments continue to provide the Company with the opportunity to more effectively stabilize cash flows. Cash flow hedge accounting is discontinued when it is determined that a derivative no longer qualifies as an effective hedge or when it is no longer probable that the hedged forecasted transaction will occur. When cash flow hedge accounting is discontinued because the derivative instrument no longer qualifies as an effective cash flow hedge, the derivative instrument is subject to the mark-to-market method of accounting prospectively. Changes in the mark-to-market fair value of the derivative instrument are recorded to unrealized gain (loss) on derivative instruments in the unaudited condensed consolidated statements of operations. Unrealized gains and losses related to discontinued cash flow hedges that were previously deferred in accumulated other comprehensive income (loss) will remain in accumulated other comprehensive income (loss) until the underlying transaction is reflected in earnings, unless it is probable that the hedged forecasted transaction will not occur, at which time, associated deferred amounts in accumulated other comprehensive income (loss) are immediately recognized in unrealized gain (loss) on derivative instruments in the unaudited condensed consolidated statements of operations. Derivative Instruments Not Designated as Hedges For derivative instruments not designated as hedges, the change in fair value of the asset or liability for the period is recorded to unrealized gain (loss) on derivative instruments in the unaudited condensed consolidated statements of operations. Upon the settlement of a derivative not designated as a hedge, the gain or loss at settlement is recorded to realized gain (loss) on derivative instruments in the unaudited condensed consolidated statements of operations. The Company has entered into crude oil basis swaps that do not qualify as cash flow hedges for accounting purposes as they were not entered into simultaneously with a corresponding NYMEX WTI derivative contract. Additionally, the Company has entered into natural gas collars, natural gas swaps and certain other crude oil swaps that do not qualify as cash flow hedges for accounting purposes as they are determined not to be highly effective in offsetting changes in the cash flows associated with crude oil purchases and gasoline and diesel sales at the Company’s refineries. Derivative Instruments Designated as Fair Value Hedges For derivative instruments that are designated and qualify as a fair value hedge (which are limited to interest rate swaps), the effective gain or loss on the derivative instrument, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized as interest expense in the unaudited condensed consolidated statements of operations. No hedge ineffectiveness is recognized if the interest rate swap qualifies for the “shortcut” method and, as a result, changes in the fair value of the derivative instrument offset the changes in the fair value of the underlying hedged debt. In addition, the differential to be paid or received on the interest rate swap arrangement is accrued and recognized as an adjustment to interest expense in the unaudited condensed consolidated statements of operations. The Company assesses at the inception of the fair value hedge whether the derivatives that are used in the hedging transactions are highly effective in offsetting changes in fair values of hedged items. Fair value hedge accounting is discontinued when it is determined that a derivative no longer qualifies as an effective hedge or when it is no longer probable that the hedged forecasted transaction will occur. When fair value hedge accounting is discontinued because the derivative instrument no longer qualifies as an effective fair value hedge, the derivative instrument is still subject to mark-to-market method of accounting, however the Company will cease to adjust the hedged asset or liability for changes in fair value. The Company is exposed to price risks due to fluctuations in the price of crude oil, refined products (primarily in the Company’s fuel products segment), natural gas and precious metals. The Company uses various strategies to reduce its exposure to commodity price risk. The strategies to reduce the Company’s risk utilize both physical forward contracts and financially settled derivative instruments, such as swaps, collars, options and futures, to attempt to reduce the Company’s exposure with respect to:
The Company manages its exposure to commodity markets, credit, volumetric and liquidity risks to manage its costs and volatility of cash flows as conditions warrant or opportunities become available. These risks may be managed in a variety of ways that may include the use of derivative instruments. Derivative instruments may be used for the purpose of mitigating risks associated with an asset, liability and anticipated future transactions and the changes in fair value of the Company’s derivative instruments will affect its earnings and cash flows; however, such changes should be offset by price or rate changes related to the underlying commodity or financial transaction that is part of the risk management strategy. The Company does not speculate with derivative instruments or other contractual arrangements that are not associated with its business objectives. Speculation is defined as increasing the Company’s natural position above the maximum position of its physical assets or trading in commodities, currencies or other risk bearing assets that are not associated with the Company’s business activities and objectives. The Company’s positions are monitored routinely by a risk management committee to ensure compliance with its stated risk management policy and documented risk management strategies. All strategies are reviewed on an ongoing basis by the Company’s risk management committee, which will add, remove or revise strategies in anticipation of changes in market conditions and/or in risk profiles. Such changes in strategies are to position the Company in relation to its risk exposures in an attempt to capture market opportunities as they arise. The Company recognizes all derivative instruments at their fair values (see Note 9) as either current assets or current liabilities in the condensed consolidated balance sheets. Fair value includes any premiums paid or received and unrealized gains and losses. Fair value does not include any amounts receivable from or payable to counterparties, or collateral provided to counterparties. Derivative asset and liability amounts with the same counterparty are netted against each other for financial reporting purposes. The Company’s financial results are subject to the possibility that changes in a derivative’s fair value could result in significant ineffectiveness and potentially no longer qualify portions or all of its derivative instruments for hedge accounting. |
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Fair Value Measurement | To estimate the fair values of the Company’s commodity derivative instruments, the Company uses the forward rate, the strike price, contractual notional amounts, the risk free rate of return and contract maturity. To estimate the fair value of the Company’s fixed-to-floating interest rate swap derivative instrument, the Company uses discounted cash flows, which use observable inputs such as maturity and market interest rates. Various analytical tests are performed to validate the counterparty data. The fair values of the Company’s derivative instruments are adjusted for nonperformance risk and creditworthiness of the hedging entities through the Company’s credit valuation adjustment (“CVA”). The CVA is calculated at the counterparty level utilizing the fair value exposure at each payment date and applying a weighted probability of the appropriate survival and marginal default percentages. The Company uses the counterparty’s marginal default rate and the Company’s survival rate when the Company is in a net asset position at the payment date and uses the Company’s marginal default rate and the counterparty’s survival rate when the Company is in a net liability position at the payment date. Nonrecurring Fair Value Measurements Certain nonfinancial assets and liabilities are measured at fair value on a nonrecurring basis and are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment. Assets and liabilities acquired in business combinations are recorded at their fair value as of the date of acquisition. The Company reviews for goodwill impairment annually on October 1 and whenever events or changes in circumstances indicate its carrying value may not be recoverable. The fair value of the reporting units is determined using the income approach. The income approach focuses on the income-producing capability of an asset, measuring the current value of the asset by calculating the present value of its future economic benefits such as cash earnings, cost savings, corporate tax structure and product offerings. Value indications are developed by discounting expected cash flows to their present value at a rate of return that incorporates the risk-free rate for the use of funds, the expected rate of inflation and risks associated with the reporting unit. These assets would generally be classified within Level 3, in the event that the Company were required to measure and record such assets at fair value within its unaudited condensed consolidated financial statements. See Note 5 for further information on goodwill impairment. The Company periodically evaluates the carrying value of long-lived assets to be held and used, including indefinite-lived intangible assets and property plant and equipment, when events or circumstances warrant such a review. Fair value is determined primarily using anticipated cash flows assumed by a market participant discounted at a rate commensurate with the risk involved and these assets would generally be classified within Level 3, in the event that the Company was required to measure and record such assets at fair value within its unaudited condensed consolidated financial statements. Debt The estimated fair value of long-term debt at June 30, 2016, and December 31, 2015, consists primarily of the senior notes. The estimated aggregate fair value of the Company’s senior notes defined as Level 1 was based upon quoted market prices in an active market. The estimated aggregate fair value of the Company’s senior notes classified as Level 2 was based upon directly observable inputs. The carrying value of borrowings, if any, under the Company’s revolving credit facility, capital lease obligations and related party note payable approximate their fair values as determined by discounted cash flows and are classified as Level 3. The Company uses a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. Observable inputs are from sources independent of the Company. Unobservable inputs reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. These tiers include the following:
In determining fair value, the Company uses various valuation techniques and prioritizes the use of observable inputs. The availability of observable inputs varies from instrument to instrument and depends on a variety of factors including the type of instrument, whether the instrument is actively traded and other characteristics particular to the instrument. For many financial instruments, pricing inputs are readily observable in the market, the valuation methodology used is widely accepted by market participants and the valuation does not require significant management judgment. For other financial instruments, pricing inputs are less observable in the marketplace and may require management judgment. Pension Assets Pension assets are reported at fair value in the accompanying unaudited condensed consolidated financial statements. At June 30, 2016, the Company’s investments associated with its pension plan (as such term is hereinafter defined) primarily consisted of mutual funds. The mutual funds are categorized as Level 2 because inputs used in their valuation are not quoted prices in active markets that are indirectly observable and are valued at the net asset value (“NAV”) of shares in each fund held by the pension plan at quarter end as provided by the third-party administrator. Plan investments can be redeemed within a short time frame (10 or so business days), if requested. See Note 11 for further information on pension assets. Renewable Identification Numbers Obligation The RINs Obligation is categorized as Level 2 and is measured at fair value using the market approach based on quoted prices from an independent pricing service. Derivative instruments are reported in the accompanying unaudited condensed consolidated financial statements at fair value. The Company’s derivative instruments consist of over-the-counter (“OTC”) contracts, which are not traded on a public exchange. Observable inputs utilized to estimate the fair values of the Company’s derivative instruments were based primarily on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets. Based on the use of various unobservable inputs, principally non-performance risk, creditworthiness of the hedging entities and unobservable inputs in the forward rate, the Company has categorized these derivative instruments as Level 3. Significant increases (decreases) in any of those unobservable inputs in isolation would result in a significantly lower (higher) fair value measurement. The Company believes it has obtained the most accurate information available for the types of derivative instruments it holds. All settlements from derivative instruments designated as cash flow hedges and deemed “effective” are included in sales for gasoline, diesel and jet fuel derivatives, and cost of sales for crude oil derivatives in the unaudited condensed consolidated statements of operations in the period that the hedged cash flow occurs. Any “ineffectiveness” associated with these settlements from derivative instruments designated as cash flow hedges are recorded in earnings in realized gain (loss) on derivative instruments in the unaudited condensed consolidated statements of operations. All settlements from derivative instruments designated as fair value hedges are accrued and recorded as an adjustment to interest expense in the unaudited condensed consolidated statements of operations. All settlements from derivative instruments not designated as hedges are recorded in realized gain (loss) on derivative instruments in the unaudited condensed consolidated statements of operations. |
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Segment Reporting | The Company offers specialty products primarily in categories consisting of lubricating oils, solvents, waxes, packaged and synthetic specialty products and other. Fuel products categories primarily consist of gasoline, diesel, jet fuel, asphalt, heavy fuel oils and other. All oilfield services products are consolidated in a standalone category The accounting policies of the reporting segments are the same as those described in the summary of significant accounting policies as disclosed in Note 2 — “Summary of Significant Accounting Policies” in Part II, Item 8 “Financial Statements and Supplementary Data” of the Company’s 2015 Annual Report, except that the disaggregated financial results for the reporting segments have been prepared using a management approach, which is consistent with the basis and manner in which management internally disaggregates financial information for the purposes of assisting internal operating decisions. The Company accounts for intersegment sales and transfers at cost plus a specified mark-up. The Company evaluates performance based upon Adjusted EBITDA (a non-GAAP financial measure). The Company defines Adjusted EBITDA for any period as: (1) net income (loss) plus (2)(a) interest expense; (b) income taxes; (c) depreciation and amortization; (d) impairment; (e) unrealized losses from mark to market accounting for hedging activities; (f) realized gains under derivative instruments excluded from the determination of net income (loss); (g) non-cash equity based compensation expense and other non-cash items (excluding items such as accruals of cash expenses in a future period or amortization of a prepaid cash expense) that were deducted in computing net income (loss); (h) debt refinancing fees, premiums and penalties; (i) any net loss realized in connection with an asset sale that was deducted in computing net income (loss) and (j) all extraordinary, unusual or non-recurring items of gain or loss, or revenue or expense; minus (3)(a) unrealized gains from mark to market accounting for hedging activities; (b) realized losses under derivative instruments excluded from the determination of net income (loss) and (c) other non-recurring expenses and unrealized items that reduced net income (loss) for a prior period, but represent a cash item in the current period. |
Summary of Significant Accounting Policies Summary of SIgnificant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Other Current Liabilities [Table Text Block] | Other current liabilities consisted of the following at June 30, 2016 and December 31, 2015 (in millions):
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Inventories (Tables) |
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Summary of Inventories | Inventories consist of the following (in millions):
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Investment in Unconsolidated Affiliates Equity Method Investments and Joint Ventures (Tables) |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments [Table Text Block] | The following represents summary financial information for Dakota Prairie, presented at 100% (in millions):
The following table summarizes the Company’s investments in unconsolidated affiliates as of June 30, 2016, and December 31, 2015 (in millions):
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Goodwill (Tables) |
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Schedule of Goodwill [Table Text Block] | Changes in goodwill balances for the periods indicated below are as follows (in millions):
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Long-Term Debt (Tables) |
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Summary of Long-Term Debt | Long-term debt consisted of the following (in millions):
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Summary of Principal Payments on Debt Obligations and Future Minimum Rentals on Capital Lease Obligations | As of June 30, 2016, principal payments on debt obligations and future minimum rentals on capital lease obligations are as follows (in millions):
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Notes Due January 2021 at Fixed Rated 11.5% Interest Payments [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Debt Instrument Redemption [Table Text Block] | On and after April 15, 2018, the Company may on any one or more occasions redeem all or a part of the 2021 Secured Notes at the redemption prices (expressed as percentages of principal amount) set forth below, plus any accrued and unpaid interest to the applicable redemption date on such 2021 Secured Notes, if redeemed during the twelve-month period beginning on April 15 of the years indicated below:
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Derivatives (Tables) |
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Summary of Gross Fair Values of Derivative Instruments, Presenting the Impact of Offsetting Derivative Assets | The following tables summarize the Company’s gross fair values of its derivative instruments, presenting the impact of offsetting derivative assets in the Company’s condensed consolidated balance sheets as of June 30, 2016, and December 31, 2015 (in millions):
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Summary of Gross Fair Values of Derivative Instruments, Presenting the Impact of Offsetting Derivative Liabilities | The following tables summarize the Company’s gross fair values of its derivative instruments, presenting the impact of offsetting derivative liabilities in the Company’s condensed consolidated balance sheets as of June 30, 2016, and December 31, 2015 (in millions):
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Schedule of Derivative Instruments | The amount reclassified from accumulated other comprehensive loss into earnings, as a result of the discontinuance of cash flow hedge accounting for certain crude oil, gasoline, jet fuel and diesel derivative instruments at the Shreveport refinery because it was no longer probable that the original forecasted transaction would occur by the end of the originally specified time period, caused the Company to recognize the following gains in the unaudited condensed consolidated statements of operations for the six months ended June 30, 2016 and 2015 (in millions):
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Schedule of the Effective Portion of Cash Flow Hedges Classified in Accumulated Other Comprehensive Income | The effective portion of the cash flow hedges classified in accumulated other comprehensive loss was gains of $2.0 million and $6.4 million as of June 30, 2016, and December 31, 2015, respectively. Absent a change in the fair market value of the underlying transactions, except for any underlying transactions pertaining to the payment of interest on existing financial instruments, the following other comprehensive income at June 30, 2016, will be reclassified to earnings by December 31, 2016, with balances being recognized as follows (in millions):
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Commodity Contract [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | The Company recorded the following amounts in its condensed consolidated balance sheets, unaudited condensed consolidated statements of operations, unaudited condensed consolidated statements of comprehensive income (loss) and unaudited condensed consolidated statements of partners’ capital as of and for the three months ended June 30, 2016 and 2015, related to its derivative instruments that were designated as cash flow hedges (in millions):
The Company recorded the following amounts in its condensed consolidated balance sheets, unaudited condensed consolidated statements of operations, unaudited condensed consolidated statements of comprehensive income (loss) and unaudited condensed consolidated statements of partners’ capital as of and for the six months ended June 30, 2016 and 2015, related to its derivative instruments that were designated as cash flow hedges (in millions):
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Commodity Contract [Member] | Not Designated as Hedging Instrument [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | The Company recorded the following gains (losses) in its unaudited condensed consolidated statements of operations for the three months ended June 30, 2016 and 2015, related to its derivative instruments not designated as hedges (in millions):
The Company recorded the following gains (losses) in its unaudited condensed consolidated statements of operations for the six months ended June 30, 2016 and 2015, related to its derivative instruments not designated as hedges (in millions):
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Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | The Company recorded the following gains (losses) in its unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2016 and 2015, related to its derivative instrument designated as a fair value hedge (in millions):
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Natural Gas Swap Contracts [Member] | Specialty Product [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Positions | Natural Gas Swap Contracts At June 30, 2016, the Company had the following derivatives related to natural gas purchases in its specialty products segment, none of which are designated as hedges:
At December 31, 2015, the Company had the following derivatives related to natural gas purchases in its specialty products segment, none of which are designated as hedges:
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Natural Gas Swap Contracts [Member] | Fuel Product [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Positions | Natural Gas Swap Contracts At June 30, 2016, the Company had the following derivatives related to natural gas purchases in its fuel products segment, none of which are designated as hedges:
At December 31, 2015, the Company had the following derivatives related to natural gas purchases in its fuel products segment, none of which are designated as hedges:
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Natural Gas Collars [Member] | Specialty Product [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Positions | Natural Gas Collars At June 30, 2016, the Company had the following derivatives related to natural gas purchases in its specialty products segment, none of which are designated as hedges:
At December 31, 2015, the Company had the following derivatives related to natural gas purchases in its specialty products segment, none of which are designated as hedges:
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Crude Oil Swaps [Member] | Fuel Product [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Positions | Crude Oil Swap Contracts At June 30, 2016, the Company had the following derivatives related to crude oil purchases in its fuel products segment, none of which are designated as hedges:
At June 30, 2016, the Company had the following derivatives related to crude oil sales in its fuel products segment, none of which are designated as hedges:
At December 31, 2015, the Company had the following derivatives related to crude oil purchases in its fuel products segment, none of which are designated as hedges:
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Crude Oil Basis Swaps [Member] | Fuel Product [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Positions | Crude Oil Basis Swap Contracts The Company has entered into crude oil basis swaps to mitigate the risk of future changes in pricing differentials between LLS and NYMEX WTI. At June 30, 2016, the Company had the following derivatives related to crude oil basis swaps in its fuel products segment, none of which are designated as hedges:
At December 31, 2015, the Company had the following derivatives related to crude oil basis swaps in its fuel products segment, none of which are designated as hedges:
The Company has entered into crude oil basis swaps to mitigate the risk of future changes in pricing differentials between WCS and NYMEX WTI. At June 30, 2016, the Company had the following derivatives related to crude oil basis swaps in its fuel products segment, none of which are designated as hedges:
At December 31, 2015, the Company had the following derivatives related to crude oil basis swaps in its fuel products segment, none of which are designated as hedges:
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Crude Oil Percent Basis Swaps [Member] | Fuel Product [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Positions | Crude Oil Percentage Basis Swap Contracts The Company has entered into derivative instruments to secure a percentage differential of WCS crude oil to NYMEX WTI. At June 30, 2016, the Company had the following derivatives related to crude oil percentage basis swaps in its fuel products segment, none of which are designated as hedges:
At December 31, 2015, the Company had the following derivatives related to crude oil percentage basis swaps in its fuel products segment, none of which are designated as hedges:
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Crude Oil Options [Member] | Fuel Product [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Positions | Crude Oil Option Contracts The Company has entered into derivative instruments to mitigate the risk of future changes in the price of NYMEX WTI crude oil. At June 30, 2016, the Company had the following derivatives related to crude oil call option purchases in its fuel products segment, none of which are designated as hedges:
At December 31, 2015, the Company had the following derivatives related to crude oil call option purchases in its fuel products segment, none of which are designated as hedges:
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Gasoline Crack Spread Swaps [Member] | Fuel Product [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Positions | Gasoline Crack Spread Swap Contracts At December 31, 2015, the Company had the following derivatives related to gasoline crack spread sales in its fuel products segment, none of which are designated as hedges:
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Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Recurring Assets and Liabilities Measured at Fair Value | The Company’s recurring assets and liabilities measured at fair value at June 30, 2016, and December 31, 2015, were as follows (in millions):
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Summary of Net Changes in Fair Value of the Company's Level 3 Financial Assets and Liabilities | The table below sets forth a summary of net changes in fair value of the Company’s Level 3 financial assets and liabilities for the six months ended June 30, 2016 and 2015 (in millions):
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Summary of the Company's Carrying and Estimated Fair Value of the Company's Financial Instruments, Carried at Adjusted Historical Cost | The Company’s carrying and estimated fair value of the Company’s financial instruments, carried at adjusted historical cost, at June 30, 2016, and December 31, 2015, were as follows (in millions):
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Employee Benefit Plans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Components of Net Periodic Pension Cost | The components of net periodic benefit cost (income) for the three and six months ended June 30, 2016 and 2015, were as follows (in millions):
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Schedule of Pension Plan Assets Measured at Fair Value | The Company’s pension plan assets measured at fair value at June 30, 2016, and December 31, 2015, were as follows (in millions):
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Accumulated Other Comprehensive Income (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Reclassification Adjustments out of Accumulated Other Comprehensive Income (Loss) | The table below sets forth a summary of reclassification adjustments out of accumulated other comprehensive income (loss) in the Company’s unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2016 and 2015 (in millions):
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Earnings Per Unit (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Unit [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Computation of Basic and Diluted Earnings Per Limited Partner Unit | The following table sets forth the computation of basic and diluted earnings per limited partner unit for the three and six months ended June 30, 2016 and 2015 (in millions, except unit and per unit data):
(1) Total diluted weighted average limited partner units outstanding excludes 0.1 million and 0.2 million of dilutive phantom units for the three and six months ended June 30, 2016, respectively. Total diluted weighted average limited partner units outstanding excludes 0.1 million of dilutive phantom units for the three months ended June 30, 2015. |
Segments and Related Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reportable Segment Information | Reportable segment information for the three and six months ended June 30, 2016 and 2015, is as follows (in millions):
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Schedule of Major Product Category Sales | The following table sets forth the major product category sales for the three months ended June 30, 2016 and 2015 (dollars in millions):
The following table sets forth the major product category sales for the six months ended June 30, 2016 and 2015 (dollars in millions):
|
Description of the Business - Narrative (Details) - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Dec. 31, 2015 |
|
Limited Partner [Member] | ||
Schedule of Capitalization, Equity [Line Items] | ||
Limited partners’ interest units outstanding (in shares) | 76,346,289 | 75,884,400 |
Ownership percentage | 98.00% | |
General Partner [Member] | ||
Schedule of Capitalization, Equity [Line Items] | ||
General partner equivalent units outstanding (in shares) | 1,558,087 | |
Ownership percentage | 2.00% |
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Other Current Liabilities) - USD ($) $ in Millions |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Accounting Policies [Abstract] | ||
RINs Obligation | $ 114.7 | $ 88.4 |
Other | 30.0 | 30.6 |
Total | $ 144.7 | $ 119.0 |
Inventories - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
|
Inventory Disclosure [Abstract] | |||||
Inventory method | last-in, first-out (“LIFO”) | ||||
Replacement cost of inventories, based on current market values | $ 62.5 | $ 62.5 | $ 41.0 | ||
Lower of cost or market inventory adjustment | $ 36.3 | $ 12.4 | $ 44.4 | $ (0.8) |
Inventories - Summary of Inventories (Details) - USD ($) $ in Millions |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Inventories | ||
Raw materials | $ 64.2 | $ 47.9 |
Work in process | 76.1 | 64.0 |
Finished goods | 304.6 | 272.5 |
Inventories total | $ 444.9 | $ 384.4 |
Investment in Unconsolidated Affiliates Investment in Unconsolidated Affiliates - Schedule (Details) - USD ($) $ in Millions |
Jun. 30, 2016 |
Jun. 27, 2016 |
Dec. 31, 2015 |
Aug. 05, 2015 |
---|---|---|---|---|
Schedule of Equity Method Investments [Line Items] | ||||
Investment in unconsolidated affiliates | $ 6.9 | $ 126.0 | ||
Dakota Prairie Refining, LLC [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investment in unconsolidated affiliates | $ 0.0 | $ 124.7 | ||
Equity interest percentage | 0.00% | 50.00% | 50.00% | |
Pacific New Investment Limited [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investment in unconsolidated affiliates | $ 5.9 | $ 0.0 | ||
Equity interest percentage | 13.80% | 0.00% | 23.80% | |
Other Equity Method Investments [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investment in unconsolidated affiliates | $ 1.0 | $ 1.3 |
Investment in Unconsolidated Affiliates - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jun. 27, 2016 |
Aug. 05, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
|
Schedule of Equity Method Investments [Line Items] | |||||||
Proceeds from sale of unconsolidated affiliates | $ 29.0 | $ 0.0 | |||||
Repayments of Long-term Lines of Credit | 589.9 | 685.0 | |||||
Loss on sale of unconsolidated affiliates | $ 113.4 | $ 0.0 | 113.4 | 0.0 | |||
Payments to Acquire Equity Method Investments | 41.8 | $ 46.0 | |||||
Investment in unconsolidated affiliates | $ 6.9 | $ 6.9 | $ 126.0 | ||||
Hi-Speed [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity interest percentage | 10.00% | ||||||
Pacific New Investment Limited [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity interest percentage | 23.80% | 13.80% | 13.80% | 0.00% | |||
Investment in unconsolidated affiliates | $ 5.9 | $ 5.9 | $ 0.0 | ||||
Pacific New Investment Limited [Member] | Proceeds From Term Loan [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Contribution amount funded | $ 10.0 | ||||||
Dakota Prairie Refining, LLC [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Proceeds from sale of unconsolidated affiliates | 28.5 | ||||||
Repayments of Long-term Lines of Credit | $ 36.0 | ||||||
Loss on sale of unconsolidated affiliates | $ 113.9 | ||||||
Equity interest percentage | 50.00% | 0.00% | 0.00% | 50.00% | |||
Outstanding standby letters of credit | $ 39.4 | ||||||
Investment in unconsolidated affiliates | $ 0.0 | $ 0.0 | $ 124.7 |
Investment in Unconsolidated Affiliates Investment in Unconsolidated Affiliates - DPR Summary Financials (Details) - Dakota Prairie Refining, LLC [Member] - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Schedule of Equity Method Investments [Line Items] | ||||
Operating revenue | $ 74.3 | $ 48.4 | $ 119.4 | $ 50.1 |
Operating loss | (12.7) | (14.8) | (33.5) | (21.8) |
Net loss | $ (13.6) | $ (15.2) | $ (35.2) | $ (22.3) |
Goodwill (Details) - USD ($) $ in Millions |
6 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
Dec. 31, 2014 |
||||||
Goodwill [Roll Forward] | |||||||||
Goodwill | $ 178.6 | $ 212.0 | $ 245.8 | ||||||
Goodwill, Impairment Loss | (33.4) | [1] | $ 0.0 | (33.8) | [1] | ||||
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | |||||||||
Goodwill, Impaired, Accumulated Impairment Loss | (103.2) | (69.8) | |||||||
Specialty Product [Member] | |||||||||
Goodwill [Roll Forward] | |||||||||
Goodwill | 173.5 | 173.5 | 173.5 | ||||||
Goodwill, Impairment Loss | [1] | 0.0 | 0.0 | ||||||
Fuel Product [Member] | |||||||||
Goodwill [Roll Forward] | |||||||||
Goodwill | 5.1 | 38.5 | 38.5 | ||||||
Goodwill, Impairment Loss | [1] | (33.4) | 0.0 | ||||||
Oilfield Services [Member] | |||||||||
Goodwill [Roll Forward] | |||||||||
Goodwill | 0.0 | 0.0 | $ 33.8 | ||||||
Goodwill, Impairment Loss | [1] | $ 0.0 | $ (33.8) | ||||||
Montana Reporting Unit [Member] | |||||||||
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | |||||||||
Fair Value Inputs, Discount Rate | 13.00% | ||||||||
Montana Reporting Unit [Member] | For Year of 2016 [Member] | Maximum [Member] | |||||||||
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | |||||||||
Fair Value Inputs, Long-term Revenue Growth Rate | 41.10% | ||||||||
Montana Reporting Unit [Member] | For Year of 2017 and Beyond [Member] | Maximum [Member] | |||||||||
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | |||||||||
Fair Value Inputs, Long-term Revenue Growth Rate | 39.90% | ||||||||
Montana Reporting Unit [Member] | For Year of 2017 and Beyond [Member] | Minimum [Member] | |||||||||
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | |||||||||
Fair Value Inputs, Long-term Revenue Growth Rate | (2.60%) | ||||||||
San Antonio Reporting Unit [Member] | |||||||||
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | |||||||||
Fair Value Inputs, Discount Rate | 13.50% | ||||||||
San Antonio Reporting Unit [Member] | For Year of 2016 [Member] | Maximum [Member] | |||||||||
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | |||||||||
Fair Value Inputs, Long-term Revenue Growth Rate | (8.50%) | ||||||||
San Antonio Reporting Unit [Member] | For Year of 2017 and Beyond [Member] | Maximum [Member] | |||||||||
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | |||||||||
Fair Value Inputs, Long-term Revenue Growth Rate | 27.40% | ||||||||
San Antonio Reporting Unit [Member] | For Year of 2017 and Beyond [Member] | Minimum [Member] | |||||||||
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | |||||||||
Fair Value Inputs, Long-term Revenue Growth Rate | (1.00%) | ||||||||
|
Commitments and Contingencies - Narrative - Environmental (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 29, 2012 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
|
Loss Contingencies [Line Items] | ||||||
Expense Incurred To Purchase Renewable Identification Numbers | $ (8.2) | $ 9.6 | $ (25.0) | $ 2.3 | ||
Great Falls [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Environmental remediation expense | 18.5 | |||||
Great Falls [Member] | Capital Expenditure [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Environmental remediation expense | 14.6 | |||||
Great Falls [Member] | Expense [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Environmental remediation expense | 3.9 | |||||
WDNR-Superior [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Environmental remediation expense | 0.1 | 0.0 | 0.1 | 0.0 | ||
Estimates Costs of Equipment Upgrades and Conduct Other Discrete | 4.0 | |||||
EPA [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Proposed penalty amount | $ 0.1 | |||||
LDEQ-Shreveport, Cotton Valley & Princeton [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Environmental remediation expense | 0.0 | 1.4 | $ 0.4 | 2.4 | ||
Settlement agreement with the LDEQ | Dec. 23, 2010 | |||||
Settlement agreement with the LDEQ, effective date | Jan. 31, 2012 | |||||
LDEQ-Shreveport, Cotton Valley & Princeton [Member] | Minimum [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Environmental remediation expense | $ 3.0 | |||||
LDEQ-Shreveport, Cotton Valley & Princeton [Member] | Maximum [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Environmental remediation expense | 5.0 | |||||
Shreveport [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Indemnified costs for certain specified environmental liabilities | 5.0 | |||||
Shreveport [Member] | Maximum [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Specified environmental liabilities first required amount to contribute | 1.0 | |||||
Bel-Ray [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Weston Agreement trust fund amount | 0.8 | 0.8 | ||||
Fair Value, Measurements, Recurring [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Obligations, Fair Value Disclosure | 114.7 | 114.7 | $ 88.4 | |||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Obligations, Fair Value Disclosure | $ 114.7 | $ 41.5 | $ 114.7 | $ 41.5 | $ 88.4 |
Commitments and Contingencies - Narrative - Occupational Health and Safety (Details) - Occupational Safety and Health Administration [Member] - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Mar. 14, 2011 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Loss Contingencies [Line Items] | |||||
Capital expenditures | $ 0.0 | $ 0.2 | $ 0.3 | $ 0.3 | |
Date in which OSHA issued a Citation and Notification of Penalty | Mar. 14, 2011 | ||||
Proposed penalty amount | $ 0.2 | ||||
Maximum [Member] | |||||
Loss Contingencies [Line Items] | |||||
Expected capital expenditures | $ 1.0 |
Commitments and Contingencies Commitments and Contingencies - Narrative -Standby Letters of Credit (Details) - USD ($) $ in Millions |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Revolving Credit Facility [Member] | ||
Loss Contingencies [Line Items] | ||
Outstanding standby letters of credit | $ 64.4 | $ 66.8 |
Revolving Credit Facility [Member] | Maximum [Member] | ||
Loss Contingencies [Line Items] | ||
Letter of credit sublimit | 90.00% | |
Revolver commitments | $ 1,000.0 | |
Letter of Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Revolver commitments | 600.0 | |
Line of Credit Facility, Capacity Available for Trade Purchases | $ 437.5 | $ 233.5 |
Long-Term Debt - Summary of Long-Term Debt (Details) - USD ($) $ in Millions |
6 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jun. 30, 2016 |
Dec. 31, 2015 |
||||||
Summary of Long-term debt | |||||||
Notes Payable, Fair Value Disclosure | $ 39.9 | $ 73.5 | |||||
Deferred Finance Costs, Noncurrent, Net | [1] | (36.0) | (28.9) | ||||
Total long-term debt | 2,014.4 | 1,773.4 | |||||
Note payable - related party | 39.9 | 73.5 | |||||
Less current portion of long-term debt | 1.6 | 1.7 | |||||
Total long-term debt, excluding current portion | 1,972.9 | 1,698.2 | |||||
Revolving Credit Facility [Member] | |||||||
Summary of Long-term debt | |||||||
Borrowings under senior secured revolving credit agreement | $ 0.1 | 111.0 | |||||
Senior Notes [Abstract] | |||||||
Weighted average interest rate | 3.70% | ||||||
Notes Due January 2021 at Fixed Rated 11.5% Interest Payments [Member] | |||||||
Summary of Long-term debt | |||||||
Borrowings under Notes | $ 400.0 | 0.0 | |||||
Senior Notes [Abstract] | |||||||
Fixed rate | 11.50% | ||||||
Effective interest rate | 12.10% | ||||||
Notes Due April 2021 at Fixed Rate of 6.5% Interest Payments [Member] | |||||||
Summary of Long-term debt | |||||||
Borrowings under Notes | $ 900.0 | 900.0 | |||||
Senior Notes [Abstract] | |||||||
Fixed rate | 6.50% | ||||||
Effective interest rate | 6.80% | ||||||
7.625% Notes [Member] | |||||||
Summary of Long-term debt | |||||||
Borrowings under Notes | [2] | $ 352.7 | 352.9 | ||||
Senior Notes [Abstract] | |||||||
Fixed rate | 7.625% | ||||||
Effective interest rate | 8.00% | ||||||
Notes Due April 2023 at Fixed Rate of 7.75% Interest Payments [Member] | |||||||
Summary of Long-term debt | |||||||
Borrowings under Notes | $ 325.0 | 325.0 | |||||
Senior Notes [Abstract] | |||||||
Fixed rate | 7.75% | ||||||
Effective interest rate | 8.00% | ||||||
Less unamortized discounts [Member] | |||||||
Summary of Long-term debt | |||||||
Less unamortized discounts | $ (12.9) | (6.5) | |||||
Interest Expense [Member] | Fair Value Hedging [Member] | |||||||
Senior Notes [Abstract] | |||||||
Liabilities, fair value adjustment | $ 2.7 | $ 2.9 | |||||
|
Long-Term Debt - Narrative (Details) - USD ($) |
6 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Apr. 20, 2016 |
Apr. 28, 2015 |
Mar. 27, 2015 |
Mar. 31, 2014 |
Nov. 26, 2013 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
|
Debt Instrument [Line Items] | ||||||||
Accumulated Amortization, Deferred Finance Costs | $ 10,900,000 | $ 8,100,000 | ||||||
Long-Term Debt (Textual) [Abstract] | ||||||||
Common units sold (in shares) | 307,985 | |||||||
Notes Due January 2021 at Fixed Rated 11.5% Interest Payments [Member] | ||||||||
Long-Term Debt (Textual) [Abstract] | ||||||||
Date senior notes issued and sold | Apr. 20, 2016 | |||||||
Senior notes, aggregate principal amount issued and sold | $ 400,000,000.0 | |||||||
Maturity date | Jan. 15, 2021 | |||||||
Debt instrument percent discount price of par | 98.273% | |||||||
Net proceeds from sale of senior notes | $ 383,200,000 | |||||||
Frequency of interest payment | semiannually | |||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 111.50% | |||||||
Notes Due April 2023 at Fixed Rate of 7.75% Interest Payments [Member] | ||||||||
Long-Term Debt (Textual) [Abstract] | ||||||||
Date senior notes issued and sold | Mar. 27, 2015 | |||||||
Senior notes, aggregate principal amount issued and sold | $ 325,000,000.0 | |||||||
Maturity date | Apr. 15, 2023 | |||||||
Debt instrument percent discount price of par | 99.257% | |||||||
Net proceeds from sale of senior notes | $ 317,000,000 | |||||||
Frequency of interest payment | semiannually | |||||||
Notes Due April 2021 at Fixed Rate of 6.5% Interest Payments [Member] | ||||||||
Long-Term Debt (Textual) [Abstract] | ||||||||
Date senior notes issued and sold | Mar. 31, 2014 | |||||||
Senior notes, aggregate principal amount issued and sold | $ 900,000,000 | |||||||
Maturity date | Apr. 15, 2021 | |||||||
Net proceeds from sale of senior notes | $ 884,000,000 | |||||||
Redemption of aggregate principal amount | $ 500,000,000 | |||||||
Frequency of interest payment | semiannually | |||||||
7.625% Notes [Member] | ||||||||
Long-Term Debt (Textual) [Abstract] | ||||||||
Date senior notes issued and sold | Nov. 26, 2013 | |||||||
Senior notes, aggregate principal amount issued and sold | $ 350,000,000.0 | |||||||
Maturity date | Jan. 15, 2022 | |||||||
Debt instrument percent discount price of par | 98.494% | |||||||
Net proceeds from sale of senior notes | $ 337,400,000 | |||||||
Frequency of interest payment | semiannually | |||||||
9.375% Notes [Member] | ||||||||
Long-Term Debt (Textual) [Abstract] | ||||||||
Redemption of aggregate principal amount | $ 100,000,000 | |||||||
9.625% Notes [Member] | ||||||||
Long-Term Debt (Textual) [Abstract] | ||||||||
Redemption of aggregate principal amount | $ 178,800,000 | |||||||
Senior Notes [Member] | Maximum [Member] | ||||||||
Long-Term Debt (Textual) [Abstract] | ||||||||
Fixed charge coverage ratio | 0.8 | |||||||
Revolving Credit Facility [Member] | ||||||||
Long-Term Debt (Textual) [Abstract] | ||||||||
Maturity date | Jul. 14, 2019 | |||||||
Frequency of interest payment | quarterly | |||||||
Incremental uncommitted expansion feature | $ 500,000,000 | |||||||
Customary letter of credit fee, including a fronting fee per annum on the stated amount of each outstanding letter of credit | 0.125% | |||||||
Revolving credit facility, borrowing capacity | $ 502,000,000 | |||||||
Outstanding borrowings | 100,000 | 111,000,000 | ||||||
Outstanding standby letters of credit | 64,400,000 | $ 66,800,000 | ||||||
Available for additional borrowings based on specified availability limitations | $ 437,500,000 | |||||||
Financial covenant | greater of (a) 12.5% of the Borrowing Base (as defined in the revolving credit agreement) then in effect and (b) $45.0 million (which amount is subject to increase in proportion to revolving commitment increases), then the Company will be required to maintain as of the end of each fiscal quarter a Fixed Charge Coverage Ratio (as defined in the revolving credit agreement) of at least 1.0 to 1.0 | |||||||
Revolving Credit Facility [Member] | Maximum [Member] | ||||||||
Long-Term Debt (Textual) [Abstract] | ||||||||
Senior secured revolving credit facility | $ 1,000,000,000 | |||||||
Unutilized commitments fee to the lender under the revolving credit facility | 0.375% | |||||||
Revolving Credit Facility [Member] | Minimum [Member] | ||||||||
Long-Term Debt (Textual) [Abstract] | ||||||||
Unutilized commitments fee to the lender under the revolving credit facility | 0.25% | |||||||
Prime Rate [Member] | Revolving Credit Facility [Member] | ||||||||
Long-Term Debt (Textual) [Abstract] | ||||||||
Basis points | 75.00% | |||||||
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | ||||||||
Long-Term Debt (Textual) [Abstract] | ||||||||
Basis points | 175.00% |
Long-Term Debt - Summary of Principal Payments on Debt Obligations and Future Minimum Rentals on Capital Lease Obligations (Details) $ in Millions |
Jun. 30, 2016
USD ($)
|
---|---|
Maturities of long-term debt | |
2016 | $ 41.5 |
2017 | 1.6 |
2018 | 1.5 |
2019 | 1.4 |
2020 | 0.9 |
Thereafter | 2,014.5 |
Long-term debt | $ 2,061.4 |
Long-Term Debt Long-Term Debt - Secured 2021 Notes (Details) - Notes Due January 2021 at Fixed Rated 11.5% Interest Payments [Member] |
Apr. 20, 2016 |
---|---|
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 111.50% |
2018 | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 111.50% |
2019 | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 108.625% |
2020 and thereafter | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 100.00% |
Derivatives - Summary of Gross Fair Values of Derivative Instruments, Presenting the Impact of Offsetting Derivative Assets (Details) - USD ($) $ in Millions |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | $ 17.3 | $ 1.4 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | (12.4) | (1.4) |
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 4.9 | 0.0 |
Not Designated as Hedging Instrument [Member] | ||
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | 17.3 | 1.4 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | (12.4) | (1.4) |
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 4.9 | 0.0 |
Natural Gas Swaps [Member] | Not Designated as Hedging Instrument [Member] | Specialty Product [Member] | ||
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | 0.0 | 0.0 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | (2.6) | 0.0 |
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | (2.6) | 0.0 |
Natural Gas Swaps [Member] | Not Designated as Hedging Instrument [Member] | Fuel Product [Member] | ||
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | 0.2 | 0.0 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | (0.4) | 0.0 |
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | (0.2) | 0.0 |
Crude Oil Swaps [Member] | Not Designated as Hedging Instrument [Member] | Fuel Product [Member] | ||
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | 14.9 | 0.0 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | (1.6) | 0.0 |
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 13.3 | 0.0 |
Crude Oil Basis Swaps [Member] | Not Designated as Hedging Instrument [Member] | Fuel Product [Member] | ||
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | 0.5 | 0.4 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | (5.9) | (0.4) |
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | (5.4) | 0.0 |
Crude Oil Percent Basis Swaps [Member] | Not Designated as Hedging Instrument [Member] | Fuel Product [Member] | ||
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | 0.7 | 0.2 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | (0.8) | (0.2) |
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | (0.1) | 0.0 |
Crude Oil Options [Member] | Not Designated as Hedging Instrument [Member] | Fuel Product [Member] | ||
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | 1.0 | 0.8 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | (1.1) | (0.8) |
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | $ (0.1) | $ 0.0 |
Derivatives - Summary of Gross Fair Values of Derivative Instruments, Presenting the Impact of Offsetting Derivative Liabilities (Details) - USD ($) $ in Millions |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | $ (22.8) | $ (35.3) |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 12.4 | 1.4 |
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets | (10.4) | (33.9) |
Not Designated as Hedging Instrument [Member] | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | (22.8) | (35.3) |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 12.4 | 1.4 |
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets | (10.4) | (33.9) |
Natural Gas Swaps [Member] | Specialty Product [Member] | Not Designated as Hedging Instrument [Member] | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | (6.4) | (14.9) |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 2.6 | 0.0 |
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets | (3.8) | (14.9) |
Natural Gas Swaps [Member] | Fuel Product [Member] | Not Designated as Hedging Instrument [Member] | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | (0.3) | (1.3) |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0.4 | 0.0 |
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets | 0.1 | (1.3) |
Natural Gas Collars [Member] | Specialty Product [Member] | Not Designated as Hedging Instrument [Member] | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | (0.2) | (0.9) |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0.0 | 0.0 |
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets | (0.2) | (0.9) |
Crude Oil Swaps [Member] | Fuel Product [Member] | Not Designated as Hedging Instrument [Member] | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | (7.1) | (5.2) |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 1.6 | 0.0 |
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets | (5.5) | (5.2) |
Crude Oil Basis Swaps [Member] | Fuel Product [Member] | Not Designated as Hedging Instrument [Member] | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | (5.7) | (0.7) |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 5.9 | 0.4 |
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets | 0.2 | (0.3) |
Crude Oil Percent Basis Swaps [Member] | Fuel Product [Member] | Not Designated as Hedging Instrument [Member] | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | (2.0) | (6.9) |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0.8 | 0.2 |
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets | (1.2) | (6.7) |
Crude Oil Options [Member] | Fuel Product [Member] | Not Designated as Hedging Instrument [Member] | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | (1.1) | (1.1) |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 1.1 | 0.8 |
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets | 0.0 | (0.3) |
Gasoline Crack Spread Swaps [Member] | Fuel Product [Member] | Not Designated as Hedging Instrument [Member] | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 0.0 | (4.3) |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0.0 | 0.0 |
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets | $ 0.0 | $ (4.3) |
Derivatives - Schedule of Derivative Instruments (Cash Flow Hedges) (Details) - Designated as Hedging Instrument [Member] - Cash Flow Hedging [Member] - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Loss on Derivatives (Effective Portion) | $ 0.0 | $ (1.1) | $ 0.0 | $ (6.2) |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Net Income (Loss) (Effective Portion) | 2.3 | 11.5 | 4.4 | 9.8 |
Amount of Gain (Loss) Recognized in Net Income (Loss) on Derivatives (Ineffective Portion) | 0.0 | 0.0 | 0.0 | 0.5 |
Crude Oil Swaps [Member] | Specialty Product [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Loss on Derivatives (Effective Portion) | 0.0 | 0.0 | 0.0 | 0.0 |
Crude Oil Swaps [Member] | Specialty Product [Member] | Cost of Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Net Income (Loss) (Effective Portion) | (0.5) | 1.6 | (1.2) | 1.2 |
Crude Oil Swaps [Member] | Specialty Product [Member] | Unrealized / Realized [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Net Income (Loss) on Derivatives (Ineffective Portion) | 0.0 | 0.0 | 0.0 | 0.0 |
Crude Oil Swaps [Member] | Fuel Product [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Loss on Derivatives (Effective Portion) | (4.5) | (2.7) | (5.8) | (9.0) |
Crude Oil Swaps [Member] | Fuel Product [Member] | Cost of Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Net Income (Loss) (Effective Portion) | (12.3) | (53.2) | (25.5) | (74.7) |
Crude Oil Swaps [Member] | Fuel Product [Member] | Unrealized / Realized [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Net Income (Loss) on Derivatives (Ineffective Portion) | 0.0 | 0.0 | 0.0 | (0.2) |
Gasoline Swaps [Member] | Fuel Product [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Loss on Derivatives (Effective Portion) | 0.0 | 2.7 | 0.0 | 3.5 |
Gasoline Swaps [Member] | Fuel Product [Member] | Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Net Income (Loss) (Effective Portion) | 0.0 | 19.3 | 0.0 | 33.3 |
Gasoline Swaps [Member] | Fuel Product [Member] | Unrealized / Realized [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Net Income (Loss) on Derivatives (Ineffective Portion) | 0.0 | 0.0 | 0.0 | 0.7 |
Diesel Swaps [Member] | Fuel Product [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Loss on Derivatives (Effective Portion) | 4.5 | (1.4) | 5.8 | (1.3) |
Diesel Swaps [Member] | Fuel Product [Member] | Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Net Income (Loss) (Effective Portion) | 15.1 | 39.8 | 31.1 | 44.6 |
Diesel Swaps [Member] | Fuel Product [Member] | Unrealized / Realized [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Net Income (Loss) on Derivatives (Ineffective Portion) | 0.0 | 0.0 | 0.0 | 0.0 |
Jet Fuel Swaps [Member] | Fuel Product [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Loss on Derivatives (Effective Portion) | 0.0 | 0.3 | 0.0 | 0.6 |
Jet Fuel Swaps [Member] | Fuel Product [Member] | Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Net Income (Loss) (Effective Portion) | 0.0 | 4.0 | 0.0 | 5.4 |
Jet Fuel Swaps [Member] | Fuel Product [Member] | Unrealized / Realized [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Net Income (Loss) on Derivatives (Ineffective Portion) | $ 0.0 | $ 0.0 | $ 0.0 | $ 0.0 |
Derivatives - Schedule of the Effective Portion of Cash Flow Hedges Classified in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Dec. 31, 2015 |
|
Derivative [Line Items] | ||
Total | $ (5.9) | $ (1.6) |
2016 [Member] | ||
Derivative [Line Items] | ||
Accumulated Other Comprehensive Income | 2.0 | |
Derivative gains (losses) reflected in gross profit: | ||
Derivative [Line Items] | ||
Total | $ 2.0 | $ 6.4 |
Derivatives - Schedule of Derivative Instruments (Fair Value Hedges) (Details) - Fair Value Hedging [Member] - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Jan. 13, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
|
Interest Expense [Member] | ||||||
Derivative [Line Items] | ||||||
Gain (Loss) on Hedged Item | $ 2.7 | $ 2.9 | ||||
Interest Rate Contract [Member] | Interest Expense [Member] | Designated as Hedging Instrument [Member] | ||||||
Derivative [Line Items] | ||||||
Gain (Loss) of Derivative | $ 0.1 | $ 0.1 | 0.2 | $ 0.3 | ||
Interest Rate Contract [Member] | Interest Income [Member] | Designated as Hedging Instrument [Member] | ||||||
Derivative [Line Items] | ||||||
Gain (Loss) on Hedged Item | 0.0 | 0.0 | 0.0 | 0.0 | ||
Interest Rate Swap [Member] | Interest Expense [Member] | Designated as Hedging Instrument [Member] | ||||||
Derivative [Line Items] | ||||||
Gain (Loss) of Derivative | 0.1 | 0.1 | 0.2 | 0.3 | ||
Gain (Loss) on Hedged Item | $ 3.3 | |||||
Interest Rate Swap [Member] | Interest Income [Member] | Designated as Hedging Instrument [Member] | ||||||
Derivative [Line Items] | ||||||
Gain (Loss) on Hedged Item | $ 0.0 | $ 0.0 | $ 0.0 | $ 0.0 |
Derivatives - Schedule of Derivative Instruments (Not Designated as Hedges) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Realized Gain (Loss) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Realized gain (loss) on derivative instruments | $ 0.0 | $ 1.2 | $ 0.0 | $ 2.4 |
Realized Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | (6.0) | (14.0) | (18.3) | (5.6) |
Unrealized Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 23.8 | 5.2 | 28.4 | (22.7) |
Natural Gas Swaps [Member] | Specialty Product [Member] | Realized Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | (3.2) | (2.5) | (6.6) | (4.6) |
Natural Gas Swaps [Member] | Specialty Product [Member] | Unrealized Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 6.6 | 3.1 | 8.5 | (0.1) |
Natural Gas Swaps [Member] | Fuel Product [Member] | Realized Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | (0.6) | 0.0 | (1.2) | 0.0 |
Natural Gas Swaps [Member] | Fuel Product [Member] | Unrealized Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 1.5 | 0.0 | 1.3 | (0.3) |
Natural Gas Collars [Member] | Specialty Product [Member] | Realized Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | (0.4) | 0.0 | (0.7) | 0.0 |
Natural Gas Collars [Member] | Specialty Product [Member] | Unrealized Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 0.5 | 0.0 | 0.6 | 0.0 |
Platinum Swaps [Member] | Specialty Product [Member] | Realized Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 0.0 | 0.0 | 0.0 | 0.0 |
Platinum Swaps [Member] | Specialty Product [Member] | Unrealized Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 0.0 | (0.2) | 0.0 | (0.3) |
Crude Oil Swaps [Member] | Fuel Product [Member] | Realized Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 0.1 | 7.7 | (0.8) | (40.6) |
Crude Oil Swaps [Member] | Fuel Product [Member] | Unrealized Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 11.5 | 5.2 | 13.0 | 55.4 |
Crude Oil Basis Swaps [Member] | Fuel Product [Member] | Realized Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 0.1 | 0.0 | 0.1 | 1.0 |
Crude Oil Basis Swaps [Member] | Fuel Product [Member] | Unrealized Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | (2.3) | 2.2 | (4.9) | 1.8 |
Crude Oil Percent Basis Swaps [Member] | Fuel Product [Member] | Realized Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | (0.5) | 0.0 | (4.4) | 0.0 |
Crude Oil Percent Basis Swaps [Member] | Fuel Product [Member] | Unrealized Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 5.2 | 0.0 | 5.4 | 0.0 |
Crude Oil Options [Member] | Fuel Product [Member] | Realized Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | (1.5) | 0.0 | (1.5) | 0.0 |
Crude Oil Options [Member] | Fuel Product [Member] | Unrealized Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 0.8 | 0.0 | 0.2 | 0.0 |
Crude Oil Futures [Member] | Fuel Product [Member] | Realized Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | (2.0) | 0.0 | ||
Crude Oil Futures [Member] | Fuel Product [Member] | Unrealized Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 0.0 | 0.0 | ||
Gasoline Swaps [Member] | Fuel Product [Member] | Realized Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 0.0 | (16.5) | 0.0 | (18.4) |
Gasoline Swaps [Member] | Fuel Product [Member] | Unrealized Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 0.0 | (7.0) | 0.0 | (8.2) |
Gasoline Crack Spread Swaps [Member] | Fuel Product [Member] | Realized Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 0.0 | (3.9) | (1.2) | (4.7) |
Gasoline Crack Spread Swaps [Member] | Fuel Product [Member] | Unrealized Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 0.0 | (1.7) | 4.3 | (3.2) |
Diesel Swaps [Member] | Fuel Product [Member] | Realized Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 0.0 | 1.2 | 0.0 | 59.2 |
Diesel Swaps [Member] | Fuel Product [Member] | Unrealized Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 0.0 | (3.8) | 0.0 | (67.2) |
Diesel Crack Spread Swaps [Member] | Fuel Product [Member] | Realized Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 0.0 | 0.0 | 0.0 | 0.9 |
Diesel Crack Spread Swaps [Member] | Fuel Product [Member] | Unrealized Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | $ 0.0 | $ 7.4 | 0.0 | 1.0 |
Jet Fuel Swaps [Member] | Fuel Product [Member] | Realized Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 0.0 | 1.6 | ||
Jet Fuel Swaps [Member] | Fuel Product [Member] | Unrealized Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | $ 0.0 | $ (1.6) |
Derivatives - Schedule of Derivative Positions (Natural Gas Swaps - Specialty) (Details) - Natural Gas Swap Contracts [Member] - Specialty Product [Member] - Not Designated as Hedging Instrument [Member] |
Jun. 30, 2016
MMBTU
$ / MMBtu
|
Dec. 31, 2015
MMBTU
$ / MMBtu
|
---|---|---|
Derivative [Line Items] | ||
MMBtu | 7,870,000 | 10,830,000 |
$/MMBtu | 3.98 | 4.05 |
First Quarter 2016 [Member] | ||
Derivative [Line Items] | ||
MMBtu | MMBTU | 1,580,000 | |
$/MMBtu | 4.24 | |
Second Quarter 2016 [Member] | ||
Derivative [Line Items] | ||
MMBtu | MMBTU | 1,380,000 | |
$/MMBtu | 4.26 | |
Third Quarter 2016 [Member] | ||
Derivative [Line Items] | ||
MMBtu | 1,380,000 | 1,380,000 |
$/MMBtu | 4.26 | 4.26 |
Fourth Quarter 2016 [Member] | ||
Derivative [Line Items] | ||
MMBtu | 1,540,000 | 1,540,000 |
$/MMBtu | 4.14 | 4.14 |
Calendar Year 2017 [Member] | ||
Derivative [Line Items] | ||
MMBtu | 4,950,000 | 4,950,000 |
$/MMBtu | 3.85 | 3.85 |
Derivatives - Schedule of Derivative Positions (Natural Gas Collars) (Details) - Not Designated as Hedging Instrument [Member] - Natural Gas Collars [Member] - Specialty Product [Member] |
Jun. 30, 2016
MMBTU
$ / MMBtu
|
Dec. 31, 2015
MMBTU
$ / MMBtu
|
---|---|---|
Derivative [Line Items] | ||
MMBtu | MMBTU | 240,000 | 600,000 |
Average Bought Call ($/MMBtu) | 4.25 | 4.25 |
Average Sold Put ($/MMBtu) | 3.89 | 3.89 |
First Quarter 2016 [Member] | ||
Derivative [Line Items] | ||
MMBtu | MMBTU | 180,000 | |
Average Bought Call ($/MMBtu) | 4.25 | |
Average Sold Put ($/MMBtu) | 3.89 | |
Second Quarter 2016 [Member] | ||
Derivative [Line Items] | ||
MMBtu | MMBTU | 180,000 | |
Average Bought Call ($/MMBtu) | 4.25 | |
Average Sold Put ($/MMBtu) | 3.89 | |
Third Quarter 2016 [Member] | ||
Derivative [Line Items] | ||
MMBtu | MMBTU | 180,000 | 180,000 |
Average Bought Call ($/MMBtu) | 4.25 | 4.25 |
Average Sold Put ($/MMBtu) | 3.89 | 3.89 |
Fourth Quarter 2016 [Member] | ||
Derivative [Line Items] | ||
MMBtu | MMBTU | 60,000 | 60,000 |
Average Bought Call ($/MMBtu) | 4.25 | 4.25 |
Average Sold Put ($/MMBtu) | 3.89 | 3.89 |
Derivatives - Schedule of Derivative Positions (Crude Oil Swaps & Basis Swaps) (Details) - Fuel Product [Member] - Not Designated as Hedging Instrument [Member] |
Jun. 30, 2016
bbl
$ / bbl
|
Dec. 31, 2015
bbl
$ / bbl
|
---|---|---|
Crude Oil Swap Purchases [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | 2,095,765 | 747,840 |
Average Swap ($/Bbl) | $ / bbl | 45.29 | 53.24 |
Crude Oil Swap Purchases [Member] | First Quarter 2016 [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | 29,120 | |
Barrels per day, purchased | 320 | |
Average Swap ($/Bbl) | $ / bbl | 44.06 | |
Crude Oil Swap Purchases [Member] | Second Quarter 2016 [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | 29,120 | |
Barrels per day, purchased | 320 | |
Average Swap ($/Bbl) | $ / bbl | 44.06 | |
Crude Oil Swap Purchases [Member] | Third Quarter 2016 [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | 398,894 | 29,440 |
Barrels per day, purchased | 4,336 | 320 |
Average Swap ($/Bbl) | $ / bbl | 39.46 | 44.06 |
Crude Oil Swap Purchases [Member] | Fourth Quarter 2016 [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | 398,894 | 29,440 |
Barrels per day, purchased | 4,336 | 320 |
Average Swap ($/Bbl) | $ / bbl | 39.46 | 44.06 |
Crude Oil Swap Purchases [Member] | Calendar Year 2017 [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | 1,297,977 | 630,720 |
Barrels per day, purchased | 3,556 | 1,728 |
Average Swap ($/Bbl) | $ / bbl | 48.87 | 54.94 |
Crude Oil Swap Sales [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | 528,520 | |
Average Swap ($/Bbl) | $ / bbl | 41.56 | |
Crude Oil Swap Sales [Member] | Calendar Year 2017 [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | 528,520 | |
Barrels per day, purchased | 1,448 | |
Average Swap ($/Bbl) | $ / bbl | 41.56 | |
Crude Oil Basis Swaps LLS and NYMEX WTI Purchased [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | 920,000 | 732,000 |
Average Differential to NYMEX WTI ($/Bbl) | $ / bbl | 1.80 | 2.40 |
Crude Oil Basis Swaps LLS and NYMEX WTI Purchased [Member] | First Quarter 2016 [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | 182,000 | |
Barrels per day, purchased | 2,000 | |
Average Differential to NYMEX WTI ($/Bbl) | $ / bbl | 2.40 | |
Crude Oil Basis Swaps LLS and NYMEX WTI Purchased [Member] | Second Quarter 2016 [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | 182,000 | |
Barrels per day, purchased | 2,000 | |
Average Differential to NYMEX WTI ($/Bbl) | $ / bbl | 2.40 | |
Crude Oil Basis Swaps LLS and NYMEX WTI Purchased [Member] | Third Quarter 2016 [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | 460,000 | 184,000 |
Barrels per day, purchased | 5,000 | 2,000 |
Average Differential to NYMEX WTI ($/Bbl) | $ / bbl | (1.80) | 2.40 |
Crude Oil Basis Swaps LLS and NYMEX WTI Purchased [Member] | Fourth Quarter 2016 [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | 460,000 | 184,000 |
Barrels per day, purchased | 5,000 | 2,000 |
Average Differential to NYMEX WTI ($/Bbl) | $ / bbl | (1.80) | 2.40 |
Crude Oil Basis Swaps WCS and NYMEX WTI Purchased [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | 4,947,000 | 731,000 |
Average Differential to NYMEX WTI ($/Bbl) | $ / bbl | (13.19) | (13.90) |
Crude Oil Basis Swaps WCS and NYMEX WTI Purchased [Member] | First Quarter 2016 [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | 91,000 | |
Barrels per day, purchased | 1,000 | |
Average Differential to NYMEX WTI ($/Bbl) | $ / bbl | (14.10) | |
Crude Oil Basis Swaps WCS and NYMEX WTI Purchased [Member] | Second Quarter 2016 [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | 91,000 | |
Barrels per day, purchased | 1,000 | |
Average Differential to NYMEX WTI ($/Bbl) | $ / bbl | (14.10) | |
Crude Oil Basis Swaps WCS and NYMEX WTI Purchased [Member] | Third Quarter 2016 [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | 1,196,000 | 92,000 |
Barrels per day, purchased | 13,000 | 1,000 |
Average Differential to NYMEX WTI ($/Bbl) | $ / bbl | (13.16) | (14.10) |
Crude Oil Basis Swaps WCS and NYMEX WTI Purchased [Member] | Fourth Quarter 2016 [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | 1,196,000 | 92,000 |
Barrels per day, purchased | 13,000 | 1,000 |
Average Differential to NYMEX WTI ($/Bbl) | $ / bbl | 13.16 | (14.10) |
Crude Oil Basis Swaps WCS and NYMEX WTI Purchased [Member] | Calendar Year 2017 [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | 2,555,000 | 365,000 |
Barrels per day, purchased | 7,000 | 1,000 |
Average Differential to NYMEX WTI ($/Bbl) | $ / bbl | (13.22) | (13.70) |
Derivatives - Schedule of Derivative Positions (Crude Oil Percent Basis Swaps) (Details) - Fuel Product [Member] - Crude Oil Percent Basis Swaps Purchased [Member] - Not Designated as Hedging Instrument [Member] - bbl |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Derivative [Line Items] | ||
Derivative, notional amount | 2,567,000 | 3,658,000 |
Fixed Percentage of NYMEX WTI (Average % of WTI/Bbl) | 73.00% | 73.40% |
First Quarter 2016 [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | 728,000 | |
Barrels per day, purchased | 8,000 | |
Fixed Percentage of NYMEX WTI (Average % of WTI/Bbl) | 73.50% | |
Second Quarter 2016 [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | 728,000 | |
Barrels per day, purchased | 8,000 | |
Fixed Percentage of NYMEX WTI (Average % of WTI/Bbl) | 73.50% | |
Third Quarter 2016 [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | 736,000 | 736,000 |
Barrels per day, purchased | 8,000 | 8,000 |
Fixed Percentage of NYMEX WTI (Average % of WTI/Bbl) | 73.50% | 73.50% |
Fourth Quarter 2016 [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | 736,000 | 736,000 |
Barrels per day, purchased | 8,000 | 8,000 |
Fixed Percentage of NYMEX WTI (Average % of WTI/Bbl) | 73.50% | 73.50% |
Calendar Year 2017 [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | 1,095,000 | 730,000 |
Barrels per day, purchased | 3,000 | 2,000 |
Fixed Percentage of NYMEX WTI (Average % of WTI/Bbl) | 72.33% | 73.00% |
Derivatives - Schedule of Derivative Positions (Crude Oil Options) (Details) - Not Designated as Hedging Instrument [Member] - Crude Oil Call Options Bought [Member] - Fuel Product [Member] |
Jun. 30, 2016
bbl
$ / bbl
|
Dec. 31, 2015
bbl
$ / bbl
|
---|---|---|
Derivative [Line Items] | ||
Derivative, notional amount | 350,000 | 350,000 |
Average Bought Call ($/Bbl) | $ / bbl | 55.00 | 55.00 |
Fourth Quarter 2016 [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | 350,000 | 350,000 |
Barrels per day, purchased | 3,804 | 3,804 |
Average Bought Call ($/Bbl) | $ / bbl | 55.00 | 55.00 |
Derivatives Schedule of Derivative Positions (Gasoline Crack Spread Swaps) (Details) - Gasoline Crack Spread Swaps [Member] - Not Designated as Hedging Instrument [Member] - Fuel Product [Member] |
Dec. 31, 2015
bbl
$ / bbl
|
---|---|
Derivative [Line Items] | |
Derivative, notional amount | 873,000 |
Average Swap ($/Bbl) | $ / bbl | 8.98 |
First Quarter 2016 [Member] | |
Derivative [Line Items] | |
Derivative, notional amount | 873,000 |
Barrels per day, sold | 9,593 |
Average Swap ($/Bbl) | $ / bbl | 8.98 |
Derivatives - Schedule of Derivative Positions (Natural Gas Swaps - Fuel) (Details) - Natural Gas Swaps [Member] - Fuel Product [Member] - Not Designated as Hedging Instrument [Member] |
Jun. 30, 2016
bbl
$ / MMBtu
|
Dec. 31, 2015
bbl
$ / MMBtu
|
---|---|---|
Derivative [Line Items] | ||
MMBtu | bbl | 1,396,000 | 2,602,000 |
$/MMBtu | $ / MMBtu | 3.02 | 3.01 |
First Quarter 2016 [Member] | ||
Derivative [Line Items] | ||
MMBtu | bbl | 603,000 | |
$/MMBtu | $ / MMBtu | 3.01 | |
Second Quarter 2016 [Member] | ||
Derivative [Line Items] | ||
MMBtu | bbl | 603,000 | |
$/MMBtu | $ / MMBtu | 2.99 | |
Third Quarter 2016 [Member] | ||
Derivative [Line Items] | ||
MMBtu | bbl | 606,000 | 606,000 |
$/MMBtu | $ / MMBtu | 3.03 | 3.03 |
Fourth Quarter 2016 [Member] | ||
Derivative [Line Items] | ||
MMBtu | bbl | 790,000 | 790,000 |
$/MMBtu | $ / MMBtu | 3.02 | 3.02 |
Derivatives - Narrative (Details) - USD ($) |
6 Months Ended | 12 Months Ended | |
---|---|---|---|
Jan. 13, 2015 |
Jun. 30, 2016 |
Dec. 31, 2015 |
|
Derivative [Line Items] | |||
Counterparties in which derivatives held were net assets | 3 | 0 | |
Derivative Asset | $ 4,900,000 | $ 0 | |
Collateral | 0 | 0 | |
Accumulated other comprehensive loss | (5,900,000) | (1,600,000) | |
Notional amount | $ 200,000,000 | ||
Derivative gains (losses) reflected in gross profit: | |||
Derivative [Line Items] | |||
Accumulated other comprehensive loss | 2,000,000 | 6,400,000 | |
Fair Value Hedging [Member] | Interest Expense [Member] | |||
Derivative [Line Items] | |||
Gain (Loss) on Hedged Item | 2,700,000 | 2,900,000 | |
Not Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Derivative Asset | $ 4,900,000 | $ 0 | |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Interest Expense [Member] | |||
Derivative [Line Items] | |||
Gain (Loss) on Hedged Item | $ 3,300,000 |
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Dec. 31, 2015 |
|
Fair Value Disclosures [Abstract] | ||
Reduction in net derivative asset | $ 0.6 | |
Reduction in net derivative liability | $ 0.8 | $ 1.2 |
Date goodwill impairment is reviewed, annually | Oct. 01, 2015 |
Fair Value Measurements - Summary of Recurring Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Millions |
Jun. 30, 2016 |
Dec. 31, 2015 |
Jun. 30, 2015 |
---|---|---|---|
Assets: | |||
Derivative Asset | $ 4.9 | $ 0.0 | |
Derivative liabilities: | |||
Total derivative liabilities | (10.4) | (33.9) | |
Fair Value, Measurements, Recurring [Member] | |||
Assets: | |||
Derivative Asset | 4.9 | 0.0 | |
Pension plan investments | 50.6 | 47.5 | |
Total recurring assets at fair value | 55.5 | 47.5 | |
Derivative liabilities: | |||
Total derivative liabilities | (10.4) | (33.9) | |
RINs Obligation | (114.7) | (88.4) | |
Total recurring liabilities at fair value | (125.1) | (122.3) | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||
Assets: | |||
Derivative Asset | 0.0 | 0.0 | |
Pension plan investments | 0.4 | 0.4 | |
Total recurring assets at fair value | 0.4 | 0.4 | |
Derivative liabilities: | |||
Total derivative liabilities | 0.0 | 0.0 | |
RINs Obligation | 0.0 | 0.0 | |
Total recurring liabilities at fair value | 0.0 | 0.0 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||
Assets: | |||
Derivative Asset | 0.0 | 0.0 | |
Pension plan investments | 50.2 | 47.1 | |
Total recurring assets at fair value | 50.2 | 47.1 | |
Derivative liabilities: | |||
Total derivative liabilities | 0.0 | 0.0 | |
RINs Obligation | (114.7) | (88.4) | $ (41.5) |
Total recurring liabilities at fair value | (114.7) | (88.4) | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||
Assets: | |||
Derivative Asset | 4.9 | 0.0 | |
Pension plan investments | 0.0 | 0.0 | |
Total recurring assets at fair value | 4.9 | 0.0 | |
Derivative liabilities: | |||
Total derivative liabilities | (10.4) | (33.9) | |
RINs Obligation | 0.0 | 0.0 | |
Total recurring liabilities at fair value | (10.4) | (33.9) | |
Crude Oil Swaps [Member] | Fair Value, Measurements, Recurring [Member] | |||
Assets: | |||
Derivative Asset | 13.3 | 0.0 | |
Derivative liabilities: | |||
Total derivative liabilities | (5.5) | (5.2) | |
Crude Oil Swaps [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||
Assets: | |||
Derivative Asset | 0.0 | 0.0 | |
Derivative liabilities: | |||
Total derivative liabilities | 0.0 | 0.0 | |
Crude Oil Swaps [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||
Assets: | |||
Derivative Asset | 0.0 | 0.0 | |
Derivative liabilities: | |||
Total derivative liabilities | 0.0 | 0.0 | |
Crude Oil Swaps [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||
Assets: | |||
Derivative Asset | 13.3 | 0.0 | |
Derivative liabilities: | |||
Total derivative liabilities | (5.5) | (5.2) | |
Crude Oil Basis Swaps [Member] | Fair Value, Measurements, Recurring [Member] | |||
Assets: | |||
Derivative Asset | (5.4) | 0.0 | |
Derivative liabilities: | |||
Total derivative liabilities | 0.2 | (0.3) | |
Crude Oil Basis Swaps [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||
Assets: | |||
Derivative Asset | 0.0 | 0.0 | |
Derivative liabilities: | |||
Total derivative liabilities | 0.0 | 0.0 | |
Crude Oil Basis Swaps [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||
Assets: | |||
Derivative Asset | 0.0 | 0.0 | |
Derivative liabilities: | |||
Total derivative liabilities | 0.0 | 0.0 | |
Crude Oil Basis Swaps [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||
Assets: | |||
Derivative Asset | (5.4) | 0.0 | |
Derivative liabilities: | |||
Total derivative liabilities | 0.2 | (0.3) | |
Crude Oil Percent Basis Swaps [Member] | Fair Value, Measurements, Recurring [Member] | |||
Assets: | |||
Derivative Asset | (0.1) | 0.0 | |
Derivative liabilities: | |||
Total derivative liabilities | (1.2) | (6.7) | |
Crude Oil Percent Basis Swaps [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||
Assets: | |||
Derivative Asset | 0.0 | 0.0 | |
Derivative liabilities: | |||
Total derivative liabilities | 0.0 | 0.0 | |
Crude Oil Percent Basis Swaps [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||
Assets: | |||
Derivative Asset | 0.0 | 0.0 | |
Derivative liabilities: | |||
Total derivative liabilities | 0.0 | 0.0 | |
Crude Oil Percent Basis Swaps [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||
Assets: | |||
Derivative Asset | (0.1) | 0.0 | |
Derivative liabilities: | |||
Total derivative liabilities | (1.2) | (6.7) | |
Crude Oil Options [Member] | Fair Value, Measurements, Recurring [Member] | |||
Assets: | |||
Derivative Asset | (0.1) | 0.0 | |
Derivative liabilities: | |||
Total derivative liabilities | 0.0 | (0.3) | |
Crude Oil Options [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||
Assets: | |||
Derivative Asset | 0.0 | 0.0 | |
Derivative liabilities: | |||
Total derivative liabilities | 0.0 | 0.0 | |
Crude Oil Options [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||
Assets: | |||
Derivative Asset | 0.0 | 0.0 | |
Derivative liabilities: | |||
Total derivative liabilities | 0.0 | 0.0 | |
Crude Oil Options [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||
Assets: | |||
Derivative Asset | (0.1) | 0.0 | |
Derivative liabilities: | |||
Total derivative liabilities | 0.0 | (0.3) | |
Gasoline Crack Spread Swaps [Member] | Fair Value, Measurements, Recurring [Member] | |||
Derivative liabilities: | |||
Total derivative liabilities | 0.0 | (4.3) | |
Gasoline Crack Spread Swaps [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||
Derivative liabilities: | |||
Total derivative liabilities | 0.0 | 0.0 | |
Gasoline Crack Spread Swaps [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||
Derivative liabilities: | |||
Total derivative liabilities | 0.0 | 0.0 | |
Gasoline Crack Spread Swaps [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||
Derivative liabilities: | |||
Total derivative liabilities | 0.0 | (4.3) | |
Natural Gas Swaps [Member] | Fair Value, Measurements, Recurring [Member] | |||
Assets: | |||
Derivative Asset | (2.8) | 0.0 | |
Derivative liabilities: | |||
Total derivative liabilities | (3.7) | (16.2) | |
Natural Gas Swaps [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||
Assets: | |||
Derivative Asset | 0.0 | 0.0 | |
Derivative liabilities: | |||
Total derivative liabilities | 0.0 | 0.0 | |
Natural Gas Swaps [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||
Assets: | |||
Derivative Asset | 0.0 | 0.0 | |
Derivative liabilities: | |||
Total derivative liabilities | 0.0 | 0.0 | |
Natural Gas Swaps [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||
Assets: | |||
Derivative Asset | (2.8) | 0.0 | |
Derivative liabilities: | |||
Total derivative liabilities | (3.7) | (16.2) | |
Natural Gas Collars [Member] | Fair Value, Measurements, Recurring [Member] | |||
Derivative liabilities: | |||
Total derivative liabilities | (0.2) | (0.9) | |
Natural Gas Collars [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||
Derivative liabilities: | |||
Total derivative liabilities | 0.0 | 0.0 | |
Natural Gas Collars [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||
Derivative liabilities: | |||
Total derivative liabilities | 0.0 | 0.0 | |
Natural Gas Collars [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||
Derivative liabilities: | |||
Total derivative liabilities | $ (0.2) | $ (0.9) |
Fair Value Measurements - Summary of Net Changes in Fair Value of the Company's Level 3 Financial Assets and Liabilities (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Fair Value, Assets and Liabilities Measured on Recurring [Line Items] | ||||
Realized loss on derivative instruments | $ (6.0) | $ (14.0) | $ (18.3) | $ (5.1) |
Unrealized gain (loss) on derivative instruments | 23.8 | 5.2 | 28.4 | (22.7) |
Summary of net changes in fair value of the company's level 3 financial assets and liabilities | ||||
Interest expense, net | (42.8) | (27.4) | (73.1) | (54.4) |
Change in fair value of cash flow hedges | 0.0 | (1.1) | 0.0 | (6.2) |
Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring [Line Items] | ||||
Realized loss on derivative instruments | 18.3 | 5.1 | ||
Unrealized gain (loss) on derivative instruments | 28.4 | (22.7) | ||
Summary of net changes in fair value of the company's level 3 financial assets and liabilities | ||||
Fair value at January 1, | (33.9) | 17.6 | ||
Interest expense, net | (0.2) | (0.3) | ||
Change in fair value of cash flow hedges | 0.0 | (6.2) | ||
Settlements | (18.1) | (10.6) | ||
Transfers in (out) of Level 3 | 0.0 | 0.0 | ||
Fair value at June 30, | $ (5.5) | $ (17.1) | (5.5) | (17.1) |
Total gain (loss) included in net income (loss) attributable to changes in unrealized gain (loss) relating to financial assets and liabilities held as of June 30, | $ 28.4 | $ (22.7) |
Fair Value Measurements - Summary of the Company's Carrying and Estimated Fair Value of the Company's Financial Instruments, Carried at Adjusted Historical Cost (Details) - USD ($) $ in Millions |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Financial Instrument: | ||
Senior notes | $ 39.9 | $ 73.5 |
Fair Value [Member] | Level 1 [Member] | ||
Financial Instrument: | ||
Senior notes | 1,128.8 | 1,095.8 |
Fair Value [Member] | Level 2 [Member] | ||
Financial Instrument: | ||
Senior notes | 452.0 | 294.1 |
Fair Value [Member] | Revolving Credit Facility [Member] | Level 3 [Member] | ||
Financial Instrument: | ||
Revolving credit facility | 0.1 | 105.1 |
Fair Value [Member] | Capital Lease Obligations [Member] | Level 3 [Member] | ||
Financial Instrument: | ||
Capital lease and other obligations | 45.6 | 46.4 |
Carrying value [Member] | Level 1 [Member] | ||
Financial Instrument: | ||
Senior notes | 1,550.3 | 1,230.8 |
Carrying value [Member] | Level 2 [Member] | ||
Financial Instrument: | ||
Senior notes | 383.6 | 317.6 |
Carrying value [Member] | Level 3 [Member] | ||
Financial Instrument: | ||
Senior notes | 39.9 | 73.5 |
Carrying value [Member] | Revolving Credit Facility [Member] | Level 3 [Member] | ||
Financial Instrument: | ||
Revolving credit facility | 0.1 | 105.1 |
Carrying value [Member] | Capital Lease Obligations [Member] | Level 3 [Member] | ||
Financial Instrument: | ||
Capital lease and other obligations | $ 45.6 | $ 46.4 |
Partners' Capital - Narrative (Details) - USD ($) |
1 Months Ended | 3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|---|
Feb. 19, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Partners' Capital [Abstract] | |||||
Equity Placement Agreement aggregate offering price up to | $ 300,000,000 | $ 300,000,000 | |||
Proceeds from sale of common units, net | $ 7,600,000 | 0 | $ 161,500,000 | ||
Common units sold (in shares) | 307,985 | ||||
Underwriting discounts | $ 100,000 | $ 100,000 | |||
General partner contribution amount | 200,000 | 200,000 | |||
Distributions to partners | 0 | 57,300,000 | 57,400,000 | 110,000,000 | |
General partner’s incentive distribution rights | $ 0 | $ 4,200,000 | $ 0 | $ 8,400,000 |
Employee Benefit Plans - Summary of Components of Net Periodic Pension Cost (Details) - Pension Benefits [Member] - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Components of net periodic pension and other post retirement benefits cost | ||||
Service cost | $ 0.0 | $ 0.2 | $ 0.0 | $ 0.3 |
Interest cost | 0.7 | 0.6 | 1.3 | 1.3 |
Expected return on assets | (0.8) | (0.9) | (1.6) | (1.7) |
Amortization of net loss | 0.1 | 0.2 | 0.1 | 0.4 |
Net periodic benefit cost (income) | $ 0.0 | $ 0.1 | $ (0.2) | $ 0.3 |
Employee Benefit Plans - Schedule of Pension Plan Assets Measured at Fair Value (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | $ 50.6 | $ 47.5 |
Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0.4 | 0.4 |
Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 50.2 | 47.1 |
Cash and Cash Equivalents [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0.4 | 0.4 |
Cash and Cash Equivalents [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0.0 | 0.0 |
Domestic Equities [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0.0 | 0.0 |
Domestic Equities [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 9.9 | 9.6 |
Foreign Equities [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0.0 | 0.0 |
Foreign Equities [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 9.3 | 9.2 |
Fixed Income [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 0.0 | 0.0 |
Fixed Income [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | $ 31.0 | $ 28.3 |
Employee Benefit Plans - Narrative (Details) |
6 Months Ended |
---|---|
Jun. 30, 2016 | |
Domestic Equity Funds [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Investment fund strategies | Domestic equity funds include funds that invest in U.S. common and preferred stocks. Foreign equity funds invest in securities issued by companies listed on international stock exchanges. Certain funds have value and growth objectives and managers may attempt to profit from security mispricing in equity markets to meet these objectives. Short-term investments (including commercial paper, certificates of deposits and government repurchase agreements) and derivatives may be used for hedging purposes to limit exposure to various risk factors. |
Fixed Income Funds [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Investment fund strategies | Fixed income funds invest in U.S. dollar-denominated, investment grade bonds, including U.S. Treasury and government agency securities, corporate bonds and mortgage and asset-backed securities. These funds may also invest in any combination of non-investment grade bonds, non-U.S. dollar-denominated bonds and bonds issued by issuers in emerging capital markets. Short-term investments (including commercial paper, certificates of deposits and government repurchase agreements) and derivatives may be used for hedging purposes to limit exposure to various risk factors. |
Accumulated Other Comprehensive Income - Summary of Reclassification Adjustments out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Total | $ (2.2) | $ (12.5) | $ (4.3) | $ (16.0) | ||
Amount Reclassified From Accumulated Other Comprehensive Income [Member] | Derivative gains (losses) reflected in gross profit: | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Sales | 15.1 | 63.1 | 31.1 | 83.3 | ||
Cost of sales | (12.8) | (51.6) | (26.7) | (73.5) | ||
Total | 2.3 | 11.5 | 4.4 | 9.8 | ||
Amount Reclassified From Accumulated Other Comprehensive Income [Member] | Amortization of defined benefit pension plans: | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Amortization of net loss | [1] | (0.1) | (0.2) | (0.1) | (0.4) | |
Total | (0.1) | (0.2) | (0.1) | (0.4) | ||
Pension Plan [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Amortization of net loss | $ 0.1 | $ 0.2 | $ 0.1 | $ 0.4 | ||
|
Earnings Per Unit - Summary of Computation of Basic and Diluted Earnings Per Limited Partner Unit (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
||||||
Earnings Per Unit [Abstract] | |||||||||
Limited partners' interest diluted net income (loss) per unit | $ (1.89) | $ (0.02) | $ (2.76) | $ 0.23 | |||||
Numerator for basic and diluted earnings per limited partner unit: | |||||||||
Net income (loss) | $ (147.9) | $ 2.5 | $ (215.6) | $ 26.3 | |||||
General partner’s interest in net income (loss) | (2.9) | 0.0 | (4.3) | 0.5 | |||||
General partner’s incentive distribution rights | 0.0 | 4.2 | 0.0 | 8.4 | |||||
Net income (loss) available to limited partners | $ (145.0) | $ (1.7) | $ (211.3) | $ 17.4 | |||||
Denominator for basic and diluted earnings per limited partner unit: | |||||||||
Basic weighted average limited partner units outstanding (in shares) | 76,761,504 | 76,092,517 | 76,491,775 | 73,675,251 | |||||
Participating securities - phantom units | 0 | 0 | 0 | 54,938 | |||||
Diluted weighted average limited partner units outstanding (in shares) | 76,761,504 | [1] | 76,092,517 | 76,491,775 | [1] | 73,730,189 | [1] | ||
Limited partners' interest basic net income (loss) per unit | $ (1.89) | $ (0.02) | $ (2.76) | $ 0.23 | |||||
Dilutive phantom units excluded (in shares) | 100,000 | 100,000 | 200,000 | ||||||
|
Segments and Related Information - Schedule of Reportable Segment Information (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Sales: | ||||
Total sales | $ 972.9 | $ 1,156.2 | $ 1,685.9 | $ 2,174.8 |
Loss from unconsolidated affiliates | (7.1) | (8.2) | (18.2) | (12.7) |
Adjusted EBITDA | 70.0 | 95.0 | 76.6 | 219.9 |
Reconciling items to net loss: | ||||
Depreciation and amortization | 52.1 | 42.6 | 100.0 | 84.1 |
Realized gain (loss) on derivatives, not reflected in net income (loss) | (2.3) | (12.6) | (4.4) | (6.5) |
Impairment charges | 33.4 | 33.4 | ||
Loss on sale of unconsolidated affiliate | (113.9) | (113.9) | ||
Unrealized (gain) loss on derivatives | (23.8) | (5.2) | (28.4) | 22.7 |
Interest expense | 42.8 | 27.4 | 73.1 | 54.4 |
Debt extinguishment costs | 0.0 | 46.6 | 0.0 | 46.6 |
Non-cash equity based compensation | 1.5 | 2.8 | 4.1 | 6.2 |
Income tax expense (benefit) | (0.3) | 9.1 | (0.5) | 13.9 |
Net income (loss) | (147.9) | 2.5 | (215.6) | 26.3 |
External Customers [Member] | ||||
Sales: | ||||
Total sales | 972.9 | 1,156.2 | 1,685.9 | 2,174.8 |
Intersegment Sales [Member] | ||||
Sales: | ||||
Total sales | 0.0 | 0.0 | 0.0 | 0.0 |
Operating Segments [Member] | Specialty Products [Member] | ||||
Sales: | ||||
Total sales | 332.4 | 372.3 | 633.5 | 735.2 |
Loss from unconsolidated affiliates | 0.0 | 0.0 | 0.0 | 0.0 |
Adjusted EBITDA | 59.0 | 63.2 | 117.5 | 129.1 |
Reconciling items to net loss: | ||||
Depreciation and amortization | 18.8 | 16.7 | 37.2 | 32.6 |
Realized gain (loss) on derivatives, not reflected in net income (loss) | 0.5 | (1.6) | 1.2 | (1.2) |
Impairment charges | 0.0 | 0.0 | ||
Loss on sale of unconsolidated affiliate | 0.0 | 0.0 | ||
Operating Segments [Member] | Specialty Products [Member] | External Customers [Member] | ||||
Sales: | ||||
Total sales | 332.4 | 370.6 | 633.1 | 732.2 |
Operating Segments [Member] | Specialty Products [Member] | Intersegment Sales [Member] | ||||
Sales: | ||||
Total sales | 0.0 | 1.7 | 0.4 | 3.0 |
Operating Segments [Member] | Fuel Products [Member] | ||||
Sales: | ||||
Total sales | 629.2 | 727.2 | 1,012.8 | 1,308.4 |
Loss from unconsolidated affiliates | (7.0) | (8.1) | (18.0) | (12.5) |
Adjusted EBITDA | 18.9 | 46.0 | (27.1) | 109.1 |
Reconciling items to net loss: | ||||
Depreciation and amortization | 28.5 | 20.2 | 53.2 | 40.2 |
Realized gain (loss) on derivatives, not reflected in net income (loss) | (2.8) | (11.0) | (5.6) | (5.3) |
Impairment charges | 33.4 | 33.4 | ||
Loss on sale of unconsolidated affiliate | (113.9) | (113.9) | ||
Operating Segments [Member] | Fuel Products [Member] | External Customers [Member] | ||||
Sales: | ||||
Total sales | 619.2 | 715.1 | 999.1 | 1,283.4 |
Operating Segments [Member] | Fuel Products [Member] | Intersegment Sales [Member] | ||||
Sales: | ||||
Total sales | 10.0 | 12.1 | 13.7 | 25.0 |
Operating Segments [Member] | Oilfield Services [Member] | ||||
Sales: | ||||
Total sales | 21.3 | 70.5 | 53.7 | 159.2 |
Loss from unconsolidated affiliates | (0.1) | (0.1) | (0.2) | (0.2) |
Adjusted EBITDA | (7.9) | (14.2) | (13.8) | (18.3) |
Reconciling items to net loss: | ||||
Depreciation and amortization | 4.8 | 5.7 | 9.6 | 11.3 |
Realized gain (loss) on derivatives, not reflected in net income (loss) | 0.0 | 0.0 | 0.0 | 0.0 |
Impairment charges | 0.0 | 0.0 | ||
Loss on sale of unconsolidated affiliate | 0.0 | 0.0 | ||
Operating Segments [Member] | Oilfield Services [Member] | External Customers [Member] | ||||
Sales: | ||||
Total sales | 21.3 | 70.5 | 53.7 | 159.2 |
Operating Segments [Member] | Oilfield Services [Member] | Intersegment Sales [Member] | ||||
Sales: | ||||
Total sales | 0.0 | 0.0 | 0.0 | 0.0 |
Operating Segments [Member] | Combined Segments [Member] | ||||
Sales: | ||||
Total sales | 982.9 | 1,170.0 | 1,700.0 | 2,202.8 |
Loss from unconsolidated affiliates | (7.1) | (8.2) | (18.2) | (12.7) |
Adjusted EBITDA | 70.0 | 95.0 | 76.6 | 219.9 |
Reconciling items to net loss: | ||||
Depreciation and amortization | 52.1 | 42.6 | 100.0 | 84.1 |
Realized gain (loss) on derivatives, not reflected in net income (loss) | (2.3) | (12.6) | (4.4) | (6.5) |
Impairment charges | 33.4 | 33.4 | ||
Loss on sale of unconsolidated affiliate | (113.9) | (113.9) | ||
Operating Segments [Member] | Combined Segments [Member] | External Customers [Member] | ||||
Sales: | ||||
Total sales | 972.9 | 1,156.2 | 1,685.9 | 2,174.8 |
Operating Segments [Member] | Combined Segments [Member] | Intersegment Sales [Member] | ||||
Sales: | ||||
Total sales | 10.0 | 13.8 | 14.1 | 28.0 |
Eliminations [Member] | ||||
Sales: | ||||
Total sales | (10.0) | (13.8) | (14.1) | (28.0) |
Loss from unconsolidated affiliates | 0.0 | 0.0 | 0.0 | 0.0 |
Adjusted EBITDA | 0.0 | 0.0 | 0.0 | 0.0 |
Reconciling items to net loss: | ||||
Depreciation and amortization | 0.0 | 0.0 | 0.0 | 0.0 |
Realized gain (loss) on derivatives, not reflected in net income (loss) | 0.0 | 0.0 | 0.0 | 0.0 |
Impairment charges | 0.0 | 0.0 | ||
Loss on sale of unconsolidated affiliate | 0.0 | 0.0 | ||
Eliminations [Member] | External Customers [Member] | ||||
Sales: | ||||
Total sales | 0.0 | 0.0 | 0.0 | 0.0 |
Eliminations [Member] | Intersegment Sales [Member] | ||||
Sales: | ||||
Total sales | $ (10.0) | $ (13.8) | $ (14.1) | $ (28.0) |
Segments and Related Information - Schedule of Major Product Category Sales (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Major product category sales | ||||
Sales | $ 972.9 | $ 1,156.2 | $ 1,685.9 | $ 2,174.8 |
Sales, percentage | 60.70% | 49.50% | 57.00% | 48.80% |
Product Concentration Risk [Member] | ||||
Major product category sales | ||||
Sales | $ 972.9 | $ 1,156.2 | $ 1,685.9 | $ 2,174.8 |
Sales, percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Product Concentration Risk [Member] | Specialty Products [Member] | ||||
Major product category sales | ||||
Sales | $ 332.4 | $ 370.6 | $ 633.1 | $ 732.2 |
Sales, percentage | 34.20% | 32.10% | 37.60% | 33.80% |
Product Concentration Risk [Member] | Specialty Products [Member] | Lubricating Oils [Member] | ||||
Major product category sales | ||||
Sales | $ 146.3 | $ 158.1 | $ 275.5 | $ 307.9 |
Sales, percentage | 15.00% | 13.70% | 16.30% | 14.20% |
Product Concentration Risk [Member] | Specialty Products [Member] | Solvents [Member] | ||||
Major product category sales | ||||
Sales | $ 61.1 | $ 81.6 | $ 117.0 | $ 167.8 |
Sales, percentage | 6.30% | 7.10% | 6.90% | 7.70% |
Product Concentration Risk [Member] | Specialty Products [Member] | Waxes [Member] | ||||
Major product category sales | ||||
Sales | $ 36.3 | $ 33.9 | $ 63.5 | $ 72.9 |
Sales, percentage | 3.70% | 2.90% | 3.80% | 3.40% |
Product Concentration Risk [Member] | Specialty Products [Member] | Packaged and Synthetic Specialty Products [Member] | ||||
Major product category sales | ||||
Sales | $ 76.6 | $ 88.4 | $ 157.5 | $ 168.9 |
Sales, percentage | 7.90% | 7.60% | 9.30% | 7.80% |
Product Concentration Risk [Member] | Specialty Products [Member] | Other [Member] | ||||
Major product category sales | ||||
Sales | $ 12.1 | $ 8.6 | $ 19.6 | $ 14.7 |
Sales, percentage | 1.30% | 0.80% | 1.30% | 0.70% |
Product Concentration Risk [Member] | Fuel Products [Member] | ||||
Major product category sales | ||||
Sales | $ 619.2 | $ 715.1 | $ 999.1 | $ 1,283.4 |
Sales, percentage | 63.60% | 61.90% | 59.20% | 58.90% |
Product Concentration Risk [Member] | Fuel Products [Member] | Gasoline [Member] | ||||
Major product category sales | ||||
Sales | $ 228.0 | $ 302.6 | $ 390.2 | $ 548.9 |
Sales, percentage | 23.40% | 26.20% | 23.10% | 25.10% |
Product Concentration Risk [Member] | Fuel Products [Member] | Diesel [Member] | ||||
Major product category sales | ||||
Sales | $ 238.6 | $ 251.0 | $ 377.5 | $ 464.9 |
Sales, percentage | 24.50% | 21.70% | 22.40% | 21.40% |
Product Concentration Risk [Member] | Fuel Products [Member] | Jet fuel [Member] | ||||
Major product category sales | ||||
Sales | $ 25.8 | $ 37.9 | $ 49.2 | $ 76.1 |
Sales, percentage | 2.70% | 3.30% | 2.90% | 3.50% |
Product Concentration Risk [Member] | Fuel Products [Member] | Asphalt, Heavy Fuel Oils and Other [Member] | ||||
Major product category sales | ||||
Sales | $ 126.8 | $ 123.6 | $ 182.2 | $ 193.5 |
Sales, percentage | 13.00% | 10.70% | 10.80% | 8.90% |
Product Concentration Risk [Member] | Oilfield Services [Member] | ||||
Major product category sales | ||||
Sales | $ 21.3 | $ 70.5 | $ 53.7 | $ 159.2 |
Sales, percentage | 2.20% | 6.00% | 3.20% | 7.30% |
Segments and Related Information - Narrative (Details) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Segment Reporting [Abstract] | ||||
Number of customers representing 10% or greater of consolidated sales | 0 | 0 | 0 | 0 |
Percentage of crude oil supply from 2 suppliers | 60.70% | 49.50% | 57.00% | 48.80% |
number of major suppliers | 2 | 2 | 2 | 2 |
Subsequent Events - Narrative (Details) - Subsequent Event [Member] $ in Millions |
1 Months Ended |
---|---|
Aug. 05, 2016
USD ($)
| |
Subsequent Event [Line Items] | |
Gain (Loss) on Derivative | $ (18.0) |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | (24.0) |
Fair value of senior notes, increase (decrease) | $ (11.0) |
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