10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 ________________________________________

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission File No.: 1-16335

 __________________________________

 Magellan Midstream Partners, L.P.

(Exact name of registrant as specified in its charter)

Delaware	73-1599053
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

One Williams Center, P.O. Box 22186, Tulsa, Oklahoma 74121-2186

(Address of principal executive offices and zip code)

(918) 574-7000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Units	MMP	New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer x    Accelerated filer ☐    Non-accelerated filer ☐     

Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    

Yes  ☐    No  x

As of May 4, 2022, there were 211,561,364 common units outstanding.

TABLE OF CONTENTS

PART I

FINANCIAL INFORMATION

ITEM 1.		CONSOLIDATED FINANCIAL STATEMENTS
	CONSOLIDATED STATEMENTS OF INCOME		4
	CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME		5
	CONSOLIDATED BALANCE SHEETS		6
	CONSOLIDATED STATEMENTS OF CASH FLOWS		7
	CONSOLIDATED STATEMENTS OF PARTNERS’ CAPITAL		8
	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS:
	1.	Organization, Description of Business and Basis of Presentation	9
	2.	Discontinued Operations and Assets Held for Sale	11
	3.	Segment Disclosures	12
	4.	Revenue	13
	5.	Investments in Non-Controlled Entities	15
	6.	Inventory	17
	7.	Debt	18
	8.	Leases	19
	9.	Employee Benefit Plans	20
	10.	Long-Term Incentive Plan	20
	11.	Derivative Financial Instruments	21
	12.	Fair Value	23
	13.	Commitments and Contingencies	25
	14.	Related Party Transactions	26
	15.	Partners’ Capital and Distributions	27
	16.	Subsequent Events	28
ITEM 2.		MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
	Introduction		29
	Recent Developments		29
	Results of Operations		29
	Adjusted EBITDA, Distributable Cash Flow and Free Cash Flow		32
	Liquidity and Capital Resources		34
	Off-Balance Sheet Arrangements		35
	Other Items		35
ITEM 3.		QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	36
ITEM 4.		CONTROLS AND PROCEDURES	37
PART II OTHER INFORMATION
ITEM 1.		LEGAL PROCEEDINGS	38
ITEM 1A.		RISK FACTORS	38
ITEM 2.		UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	39
ITEM 3.		DEFAULTS UPON SENIOR SECURITIES	39
ITEM 4.		MINE SAFETY DISCLOSURES	39
ITEM 5.		OTHER INFORMATION	39
ITEM 6.		EXHIBITS	39
INDEX TO EXHIBITS			40
SIGNATURES			41

1

Forward-Looking Statements

Except for statements of historical fact, all statements in this Quarterly Report on Form 10-Q constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements may be identified by words like “anticipates,” “believes,” “cause,” “continue,” “could,” “depend,” “develop,” “estimates,” “expects,” “forecasts,” “goal,” “guidance,” “have,” “impact,” “implement,” “increase,” “intends,” “lead,” “maintain,” “may,” “might,” “plans,” “potential,” “possible,” “projected,” “reduce,” “remain,” “result,” “scheduled,” “seek,” “should,” “will,” “would” and other similar words or expressions. The absence of such words or expressions does not necessarily mean the statements are not forward-looking. Although we believe our forward-looking statements are reasonable, statements made regarding future results are not guarantees of future performance and are subject to numerous assumptions, uncertainties and risks that are difficult to predict, including those described in Part I, Item 1A – Risk Factors of our Annual Report on Form 10-K. Actual outcomes and results may be materially different from the results stated or implied in such forward-looking statements included in this report. You should not put any undue reliance on any forward-looking statement.

The following are among the important factors that could cause future results to differ materially from any expected, projected, forecasted or estimated amounts, events or circumstances we have discussed in this report:

•changes in demand for refined products, crude oil or liquefied petroleum gases (“LPGs”);

•price fluctuations for refined products, crude oil or LPGs and expectations about future prices for these products;

•changes in the production of crude oil in the basins served by our pipelines or terminals;

•changes in general economic conditions, including market and macro-economic disruptions resulting from pandemics and related governmental responses;

•changes in the financial condition of our customers, vendors, derivatives counterparties, lenders or joint venture co-owners;

•our ability to secure financing in the credit and capital markets in amounts and on terms that will allow us to execute our business strategy, refinance our existing obligations when due and maintain adequate liquidity;

•development and increasing use of alternative sources of energy, including but not limited to electric and battery-powered motors, natural gas, hydrogen and renewable fuels such as ethanol, biodiesel and renewable diesel, as well as increased conservation or fuel efficiency and regulatory or technological developments that could affect demand for our services;

•changes in population in the markets served by our refined products pipeline system and changes in consumer preferences, driving patterns or rates of automobile ownership;

•changes in the product quality, throughput or interruption in service of refined products or crude oil pipelines owned and operated by third parties and connected to our assets;

•changes in demand for transportation, storage or other services we provide for refined products or crude oil;

•changes in supply and demand patterns for our facilities due to geopolitical events, the activities of the Organization of the Petroleum Exporting Countries (“OPEC”) and other non-OPEC oil producing countries with large production capacity;

•changes in United States (“U.S.”) trade policies or in laws governing the importing or exporting of petroleum products;

•our ability to manage interest rate and commodity price exposures;

•changes in our tariff rates or other terms of service required by the Federal Energy Regulatory Commission or state regulatory agencies;

•shut-downs or cutbacks at refineries, oil fields, petrochemical plants or other customers or businesses that use or supply our assets;

•the effect of weather patterns or other natural phenomena, including climate change, on our operations and demand for our services;

•an increase in the competition our operations encounter, including the effects of capacity over-build in the areas where we operate;

2

•the occurrence of wars, natural disasters, epidemics, terrorism, cyberattacks, sabotage, protests, activism, operational hazards, equipment failures, system failures or other unforeseen interruptions, as well as global and domestic repercussions from and any government responses to any such events;

•our ability to obtain adequate levels of insurance at a reasonable cost, and the potential for losses to exceed the insurance coverage we do obtain;

•the treatment of us as a corporation for federal or state income tax purposes or if we become subject to significant forms of other taxation or more aggressive interpretation or increased assessments under existing forms of taxation;

•our ability to identify expansion projects, accretive acquisitions and joint ventures with acceptable expected returns and to complete these projects on time and at projected costs;

•our ability to consummate announced divestitures;

•our ability to successfully execute our capital allocation priorities, including unit repurchases, with acceptable expected returns;

•the effect of changes in accounting policies and uncertainty of estimates, including accruals and costs of environmental remediation;

•our ability to cooperate with and rely on our joint venture co-owners;

•actions by rating agencies concerning our credit ratings;

•our ability to timely obtain and maintain all necessary approvals, consents and permits required to operate our existing assets and to construct, acquire and operate any new or modified assets;

•our ability to promptly obtain all necessary services, materials, labor, supplies and rights-of-way required for maintenance and operation of our current assets and construction of our growth projects, without significant delays, disputes or cost overruns;

•risks inherent in the use and security of information systems in our business and implementation of new software and hardware;

•changes in laws and regulations or the interpretation of laws and regulations that govern our gas liquids blending activities or changes regarding product quality specifications or renewable fuel obligations that impact our ability to produce gasoline volumes through our gas liquids blending activities or that require significant capital outlays for compliance;

•changes in laws and regulations or the interpretation of laws and regulations to which we or our customers are or could become subject, including those related to tax withholding requirements, safety, security, employment, hydraulic fracturing, derivatives transactions, trade and the environment, including laws and regulations designed to address climate change;

•the cost and effects of legal and administrative claims and proceedings against us, our subsidiaries or our joint ventures;

•the amount of our indebtedness, which could make us vulnerable to general adverse economic and industry conditions, limit our ability to borrow additional funds, place us at competitive disadvantages compared to our competitors that have less debt or have other adverse consequences;

•the potential that our internal controls may not be adequate, weaknesses may be discovered or remediation of any identified weaknesses may not be successful;

•the ability and intent of our customers, vendors, lenders, joint venture co-owners or other third parties to perform their contractual obligations to us;

•petroleum products supply disruptions whether due to international military conflicts or otherwise; and

•other factors and uncertainties inherent in the transportation, storage and distribution of petroleum products and the operation, acquisition and construction of assets related to such activities.

This list of important factors is not exhaustive. The forward-looking statements in this Quarterly Report speak only as of the date hereof, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changes in assumptions or otherwise, unless required by law.

3

PART I

FINANCIAL INFORMATION

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS

MAGELLAN MIDSTREAM PARTNERS, L.P.

CONSOLIDATED STATEMENTS OF INCOME

(In millions, except per unit amounts)

(Unaudited)

 

	Three Months Ended
	March 31,
	2021		2022
Transportation and terminals revenue	$	412.0	$	422.9
Product sales revenue	213.7		246.1
Affiliate management fee revenue	5.4		5.7
Total revenue	631.1		674.7
Costs and expenses:
Operating	127.3		124.2
Cost of product sales	170.9		243.4
Depreciation, amortization and impairment	54.6		57.7
General and administrative	46.0		62.8
Total costs and expenses	398.8		488.1
Other operating income (expense)	(0.4)		(2.0)
Earnings of non-controlled entities	39.1		35.4
Operating profit	271.0		220.0
Interest expense	57.0		57.3
Interest capitalized	(0.5)		(0.4)
Interest income	(0.1)		(0.1)
Gain on disposition of assets	—		(0.2)
Other (income) expense	1.1		0.6
Income from continuing operations before provision for income taxes	213.5		162.8
Provision for income taxes	0.8		0.8
Income from continuing operations	212.7		162.0
Income from discontinued operations	8.6		3.5
Net income	$	221.3	$	165.5
Earnings per common unit
Basic:
Continuing operations	$	0.95	$	0.76
Discontinued operations	0.04		0.02
Net income per common unit	$	0.99	$	0.78
Weighted average number of common units outstanding	223.6		212.9
Diluted:
Continuing operations	$	0.95	$	0.76
Discontinued operations	0.04		0.02
Net income per common unit	$	0.99	$	0.78
Weighted average number of common units outstanding	223.6		212.9

See notes to consolidated financial statements.

4

MAGELLAN MIDSTREAM PARTNERS, L.P.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited, in millions)

	Three Months Ended March 31,
	2021		2022
Net income	$	221.3	$	165.5
Other comprehensive income:
Derivative activity:
Reclassification of net loss on cash flow hedges to income	0.9		0.9
Changes in employee benefit plan assets and benefit obligations     recognized in other comprehensive income:
Recognition of actuarial loss amortization in income	1.6		1.2
Total other comprehensive income	2.5		2.1
Comprehensive income	$	223.8	$	167.6

See notes to consolidated financial statements.

5

MAGELLAN MIDSTREAM PARTNERS, L.P.

CONSOLIDATED BALANCE SHEETS

(In millions)

 

	December 31, 2021		March 31, 2022
ASSETS			(Unaudited)
Current assets:
Cash and cash equivalents	$	2.0	$	4.6
Trade accounts receivable	135.2		129.8
Other accounts receivable	34.6		35.0
Inventory	281.1		308.2
Commodity derivatives contracts, net	1.4		3.1
Commodity derivatives deposits	46.3		130.8
Assets held for sale	299.5		304.0
Other current assets	43.1		35.7
Total current assets	843.2		951.2
Property, plant and equipment	8,045.9		8,081.9
Less: accumulated depreciation	2,141.2		2,195.4
Net property, plant and equipment	5,904.7		5,886.5
Investments in non-controlled entities	980.8		978.6
Right-of-use asset, operating leases	174.2		168.3
Long-term receivables	10.1		9.8
Goodwill	50.1		50.1
Other intangibles (less accumulated amortization of $11.9 and $12.6 at December 31, 2021 and March 31, 2022, respectively)	43.2		42.5
Restricted cash	7.0		6.7
Other noncurrent assets	16.7		17.3
Total assets	$	8,030.0	$	8,111.0
LIABILITIES AND PARTNERS’ CAPITAL
Current liabilities:
Accounts payable	$	109.5	$	98.0
Accrued payroll and benefits	74.9		43.9
Accrued interest payable	59.0		50.0
Accrued taxes other than income	76.5		51.7
Deferred revenue	92.5		106.4
Accrued product liabilities	153.5		126.6
Commodity derivatives contracts, net	18.6		50.5
Current portion of operating lease liability	25.8		30.7
Liabilities held for sale	15.8		23.5
Other current liabilities	53.5		54.5
Total current liabilities	679.6		635.8
Long-term debt, net	5,088.8		5,317.2
Long-term operating lease liability	147.3		138.5
Long-term pension and benefits	145.0		145.8
Other noncurrent liabilities	69.5		71.0
Commitments and contingencies
Partners’ capital:
Common unitholders (212.4 units and 211.6 units outstanding at December 31, 2021 and March 31, 2022, respectively)	2,054.8		1,955.6
Accumulated other comprehensive loss	(155.0)		(152.9)
Total partners’ capital	1,899.8		1,802.7
Total liabilities and partners’ capital	$	8,030.0	$	8,111.0

See notes to consolidated financial statements.

6

MAGELLAN MIDSTREAM PARTNERS, L.P.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in millions)

	Three Months Ended
	March 31,
	2021		2022
Operating Activities:
Net income	$	221.3	$	165.5
Adjustments to reconcile net income to net cash provided by operating activities:
Income from discontinued operations	(8.6)		(3.5)
Depreciation, amortization and impairment expense	54.6		57.7
Gain on disposition of assets	—		(0.2)
Earnings of non-controlled entities	(39.1)		(35.4)
Distributions from operations of non-controlled entities	51.4		38.4
Equity-based incentive compensation expense	4.7		14.4
Settlement cost, amortization of prior service credit and actuarial loss	1.6		1.2
Changes in operating assets and liabilities:
Trade accounts receivable and other accounts receivable	(31.3)		5.0
Inventory	(46.5)		(27.1)
Accounts payable	10.1		(9.3)
Accrued payroll and benefits	(12.3)		(31.0)
Accrued interest payable	(9.0)		(9.0)
Accrued taxes other than income	(19.9)		(24.8)
Accrued product liabilities	58.9		(26.9)
Deferred revenue	(0.6)		13.9
Other current and noncurrent assets and liabilities	(7.1)		(36.3)
Net cash provided by operating activities of continuing operations	228.2		92.6
Net cash provided by operating activities of discontinued operations	12.2		7.8
Net cash provided by operating activities	240.4		100.4
Investing Activities:
Additions to property, plant and equipment, net(1)	(29.7)		(44.9)
Proceeds from sale and disposition of assets	0.7		0.2
Investments in non-controlled entities	(1.9)		(0.8)
Net cash used by investing activities of continuing operations	(30.9)		(45.5)
Net cash used by investing activities of discontinued operations	(0.3)		(1.1)
Net cash used by investing activities	(31.2)		(46.6)
Financing Activities:
Distributions paid	(229.4)		(220.6)
Repurchases of common units	—		(50.0)
Net borrowings under revolver	17.0		228.0
Payments associated with settlement of equity-based incentive compensation	(6.2)		(8.9)
Net cash used by financing activities	(218.6)		(51.5)
Change in cash, cash equivalents and restricted cash	(9.4)		2.3
Cash, cash equivalents and restricted cash at beginning of period	22.4		9.0
Cash, cash equivalents and restricted cash at end of period	$	13.0	$	11.3
Supplemental non-cash investing activities:
(1) Additions to property, plant and equipment	$	(20.4)	$	(39.4)
Changes in accounts payable and other current liabilities related to capital expenditures	(9.3)		(5.5)
Additions to property, plant and equipment, net	$	(29.7)	$	(44.9)

See notes to consolidated financial statements.

7

MAGELLAN MIDSTREAM PARTNERS, L.P.

CONSOLIDATED STATEMENTS OF PARTNERS’ CAPITAL

(Unaudited, in millions)

	Common Unitholders		Accumulated Other Comprehensive Loss			Total Partners’ Capital
Balance, January 1, 2021	$	2,487.0		$	(183.2)	$	2,303.8
Comprehensive income:
Net income	221.3			—		221.3
Total other comprehensive income	—			2.5		2.5
Total comprehensive income	221.3			2.5		223.8
Distributions	(229.4)			—		(229.4)
Equity-based incentive compensation expense	4.7			—		4.7
Issuance of common units in settlement of equity-based incentive plan awards	0.5			—		0.5
Payments associated with settlement of equity-based incentive compensation	(6.2)			—		(6.2)
Other	(0.2)			—		(0.2)
Three Months Ended March 31, 2021	$	2,477.7		$	(180.7)	$	2,297.0
Balance, January 1, 2022	$	2,054.8		$	(155.0)	$	1,899.8
Comprehensive income:
Net income	165.5			—		165.5
Total other comprehensive income	—			2.1		2.1
Total comprehensive income	165.5			2.1		167.6
Distributions	(220.6)			—		(220.6)
Repurchase of common units	(50.0)			—		(50.0)
Equity-based incentive compensation expense	14.4			—		14.4
Issuance of common units in settlement of equity-based incentive plan awards	0.7			—		0.7
Payments associated with settlement of equity-based incentive compensation	(8.9)			—		(8.9)
Other	(0.3)			—		(0.3)
Three Months Ended March 31, 2022	$	1,955.6		$	(152.9)	$	1,802.7

See notes to consolidated financial statements.

8

MAGELLAN MIDSTREAM PARTNERS, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.Organization, Description of Business and Basis of Presentation

Organization

Unless indicated otherwise, the terms “our,” “we,” “us” and similar language refer to Magellan Midstream Partners, L.P. together with its subsidiaries. Magellan Midstream Partners, L.P. is a Delaware limited partnership, and our common units are traded on the New York Stock Exchange under the ticker symbol “MMP.” Magellan GP, LLC, a wholly owned Delaware limited liability company, serves as our general partner. The board of directors of our general partner is referred to herein as our “board.”

Description of Business

We are principally engaged in the transportation, storage and distribution of refined petroleum products and crude oil. As of March 31, 2022, our asset portfolio, excluding assets associated with discontinued operations, consisted of:

•our refined products segment, comprised of our approximately 9,800-mile refined petroleum products pipeline system with 54 terminals and two marine storage terminals (one of which is owned through a joint venture); and

•our crude oil segment, comprised of approximately 2,200 miles of crude oil pipelines, a condensate splitter and 39 million barrels of aggregate storage capacity, of which approximately 29 million barrels are used for contract storage. Approximately 1,000 miles of these pipelines, the condensate splitter and 31 million barrels of this storage capacity (including 25 million barrels used for contract storage) are wholly-owned, with the remainder owned through joint ventures.

The following terms are commonly used in our industry to describe products that we transport, store, distribute or otherwise handle through our petroleum pipelines and terminals:

•refined products are the output from crude oil refineries that are primarily used as fuels by consumers. Refined products include gasoline, diesel fuel, aviation fuel, kerosene and heating oil. Diesel fuel, kerosene and heating oil are also referred to as distillates;

•transmix is a mixture that forms when different refined products are transported in pipelines. Transmix is fractionated and blended into usable refined products;

•LPGs are liquids produced as by-products of the crude oil refining process and in connection with natural gas production. LPGs include gas liquids such as butane, natural gasoline and propane;

•blendstocks are products blended with refined products to change or enhance their characteristics such as increasing a gasoline’s octane or oxygen content. Blendstocks include alkylates and oxygenates; and

•crude oil, which includes condensate, is a naturally occurring unrefined petroleum product recovered from underground that is used as feedstock by refineries, splitters and petrochemical facilities.

We use the term petroleum products to describe any, or a combination, of the above-noted products. In addition, we handle, store and distribute renewable fuels, such as ethanol and biodiesel.

9

MAGELLAN MIDSTREAM PARTNERS, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Basis of Presentation

In the opinion of management, our accompanying consolidated financial statements which are unaudited, except for the consolidated balance sheet as of December 31, 2021, which is derived from our audited financial statements, include all normal and recurring adjustments necessary to present fairly our financial position as of March 31, 2022, the results of operations for the three months ended March 31, 2021 and 2022 and cash flows for the three months ended March 31, 2021 and 2022. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected for the full year ending December 31, 2022 for several reasons. Profits from our gas liquids blending activities are realized largely during the first and fourth quarters of each year. Additionally, gasoline demand, which drives transportation volumes and revenues on our refined products pipeline system, generally trends higher during the summer driving months. Further, the volatility of commodity prices impacts the profits from our commodity activities and the volume of petroleum products we transport on our pipelines. 

Pursuant to the rules and regulations of the Securities and Exchange Commission, the financial statements in

this report have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2021.

Discontinued Operations

In June 2021, we entered into an agreement to sell our independent terminals network comprised of 26 refined petroleum products terminals with approximately six million barrels of storage located primarily in the southeastern U.S. to Buckeye Partners, L.P. (“Buckeye”). The sale is expected to close upon the receipt of required regulatory approval. The related results of operations, financial position and cash flows have been classified as discontinued operations for all periods presented (see Note 2 – Discontinued Operations and Assets Held for Sale for additional details). Unless indicated otherwise, the information in the Notes to Consolidated Financial Statements relates to continuing operations.

Reclassifications

Certain prior period amounts have been reclassified to conform with the current period’s presentation, including amounts related to our discontinued operations.

Use of Estimates

The preparation of our consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities that exist at the date of our consolidated financial statements, as well as their impact on the reported amounts of revenue and expense during the reporting periods. Actual results could differ from those estimates.

New Accounting Pronouncements

We evaluate new Accounting Standards Codifications (“ASC”) and updates issued by the Financial Accounting Standards Board on an ongoing basis. There are no new accounting pronouncements that we anticipate will have a material impact on our financial statements.

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MAGELLAN MIDSTREAM PARTNERS, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

2.Discontinued Operations and Assets Held for Sale

Summarized Results of Discontinued Operations

The following table provides the summarized results that have been reclassified from continuing operations to discontinued operations on the consolidated statements of income (in millions):

	Three Months Ended March 31,
	2021		2022
Transportation and terminals revenue	$	13.1	$	12.1
Product sales revenue	16.9		6.3
Total revenue	30.0		18.4
Costs and expenses:
Operating	3.4		3.8
Cost of product sales	13.9		10.5
Depreciation, amortization and impairment	3.5		—
General and administrative	0.6		0.6
Total costs and expenses	21.4		14.9
Income from discontinued operations	$	8.6	$	3.5

Summarized Assets and Liabilities of Discontinued Operations

The following table provides the summarized assets and liabilities classified as held for sale on the consolidated balance sheets (in millions):

	December 31, 2021		March 31, 2022
Assets:
Trade accounts receivable	$	6.3	$	5.9
Inventory	17.0		20.1
Net property, plant and equipment	272.0		274.0
Goodwill	2.7		2.7
Other assets	1.5		1.3
Total assets classified as held for sale	$	299.5	$	304.0
Liabilities:
Accounts payable	$	3.7	$	4.7
Accrued product liabilities	8.4		13.4
Other liabilities	3.7		5.4
Total liabilities classified as held for sale	$	15.8	$	23.5

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MAGELLAN MIDSTREAM PARTNERS, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

3.Segment Disclosures

Our reportable segments are strategic business units that offer different products and services. Our segments are managed separately because each segment requires different marketing strategies and business knowledge. Management evaluates performance based on segment operating margin, which includes revenue from affiliates and third-party customers, intersegment transactions, operating expense, cost of product sales, other operating (income) expense and earnings of non-controlled entities.

We believe that investors benefit from having access to the same financial measures used by management. Operating margin, which is presented in the following tables, is an important measure used by management to evaluate the economic performance of our core operations. Operating margin is not a GAAP measure, but the components of operating margin are computed using amounts that are determined in accordance with GAAP. A reconciliation of operating margin to operating profit, which is its nearest comparable GAAP financial measure, is included in the tables below. Operating profit includes depreciation, amortization and impairment expense and general and administrative (“G&A”) expense that management does not consider when evaluating the core profitability of our separate operating segments.

	Three Months Ended March 31, 2021
	(in millions)
	Refined Products		Crude Oil		Intersegment Eliminations		Total
Transportation and terminals revenue	$	297.6	$	116.2	$	(1.8)	$	412.0
Product sales revenue	184.5		29.2		—		213.7
Affiliate management fee revenue	1.6		3.8		—		5.4
Total revenue	483.7		149.2		(1.8)		631.1
Operating expense	91.5		39.2		(3.4)		127.3
Cost of product sales	140.8		30.1		—		170.9
Other operating (income) expense	(0.3)		0.7		—		0.4
Earnings of non-controlled entities	(9.2)		(29.9)		—		(39.1)
Operating margin	260.9		109.1		1.6		371.6
Depreciation, amortization and impairment expense	36.1		16.9		1.6		54.6
G&A expense	33.0		13.0		—		46.0
Operating profit	$	191.8	$	79.2	$	—	$	271.0

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	Three Months Ended March 31, 2022
	(in millions)
	Refined Products		Crude Oil		Intersegment Eliminations		Total
Transportation and terminals revenue	$	309.5	$	114.7	$	(1.3)	$	422.9
Product sales revenue	241.6		4.5		—		246.1
Affiliate management fee revenue	1.8		3.9		—		5.7
Total revenue	552.9		123.1		(1.3)		674.7
Operating expense	88.2		38.8		(2.8)		124.2
Cost of product sales	233.1		10.3		—		243.4
Other operating (income) expense	(0.1)		2.1		—		2.0
Earnings of non-controlled entities	(3.7)		(31.7)		—		(35.4)
Operating margin	235.4		103.6		1.5		340.5
Depreciation, amortization and impairment expense	39.6		16.6		1.5		57.7
G&A expense	45.7		17.1		—		62.8
Operating profit	$	150.1	$	69.9	$	—	$	220.0

4. Revenue

Statements of Income Disclosures

The following tables provide details of our revenue disaggregated by key activities that comprise our performance obligations by operating segment (in millions):

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	Three Months Ended March 31, 2021
	Refined Products		Crude Oil		Intersegment Eliminations		Total
Transportation	$	193.4	$	55.0	$	—	$	248.4
Terminalling	22.6		6.1		—		28.7
Storage	49.0		29.3		(1.8)		76.5
Ancillary services	28.5		8.0		—		36.5
Lease revenue	4.1		17.8		—		21.9
Transportation and terminals revenue	297.6		116.2		(1.8)		412.0
Product sales revenue	184.5		29.2		—		213.7
Affiliate management fee revenue	1.6		3.8		—		5.4
Total revenue	483.7		149.2		(1.8)		631.1
Revenue not under the guidance of ASC 606, Revenue from Contracts with Customers:
Lease revenue	(4.1)		(17.8)		—		(21.9)
(Gains) losses from futures contracts included in product sales revenue	47.3		5.4		—		52.7
Affiliate management fee revenue	(1.6)		(3.8)		—		(5.4)
Total revenue from contracts with customers under ASC 606	$	525.3	$	133.0	$	(1.8)	$	656.5

	Three Months Ended March 31, 2022
	Refined Products		Crude Oil		Intersegment Eliminations		Total
Transportation	$	213.3	$	55.0	$	—	$	268.3
Terminalling	23.3		6.3		—		29.6
Storage	39.5		27.0		(1.3)		65.2
Ancillary services	27.6		7.9		—		35.5
Lease revenue	5.8		18.5		—		24.3
Transportation and terminals revenue	309.5		114.7		(1.3)		422.9
Product sales revenue	241.6		4.5		—		246.1
Affiliate management fee revenue	1.8		3.9		—		5.7
Total revenue	552.9		123.1		(1.3)		674.7
Revenue not under the guidance of ASC 606, Revenue from Contracts with Customers:
Lease revenue	(5.8)		(18.5)		—		(24.3)
(Gains) losses from futures contracts included in product sales revenue	108.2		8.2		—		116.4
Affiliate management fee revenue	(1.8)		(3.9)		—		(5.7)
Total revenue from contracts with customers under ASC 606	$	653.5	$	108.9	$	(1.3)	$	761.1

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Balance Sheet Disclosures

The following table summarizes our accounts receivable, contract assets and contract liabilities resulting from contracts with customers (in millions):

	December 31, 2021		March 31, 2022
Accounts receivable from contracts with customers	$	134.8	$	125.1
Contract assets	$	12.5	$	13.8
Contract liabilities	$	100.1	$	112.4

For the three months ended March 31, 2022, we recognized $67.7 million of transportation and terminals revenue that was recorded in deferred revenue as of December 31, 2021.

Unfulfilled Performance Obligations

The following table provides the aggregate amount of the transaction price allocated to our unfulfilled performance obligations (“UPOs”) as of March 31, 2022 by operating segment, including the range of years remaining on our contracts with customers and an estimate of revenues expected to be recognized over the next 12 months (dollars in millions):

	Refined Products		Crude Oil		Total
Balances at March 31, 2022	$	1,800.9	$	1,023.5	$	2,824.4
Remaining terms	1 - 17 years		1 - 10 years
Estimated revenues from UPOs to be recognized in the next 12 months	$	370.4	$	249.5	$	619.9

5.Investments in Non-Controlled Entities

Our equity investments in non-controlled entities at March 31, 2022 were comprised of:

Entity	Ownership Interest
BridgeTex Pipeline Company, LLC (“BridgeTex”)	30%
Double Eagle Pipeline LLC (“Double Eagle”)	50%
HoustonLink Pipeline Company, LLC (“HoustonLink”)	50%
MVP Terminalling, LLC (“MVP”)	25%
Powder Springs Logistics, LLC (“Powder Springs”)	50%
Saddlehorn Pipeline Company, LLC (“Saddlehorn”)	30%
Seabrook Logistics, LLC (“Seabrook”)	50%
Texas Frontera, LLC (“Texas Frontera”)	50%

.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

We serve as operator of BridgeTex, HoustonLink, MVP, Powder Springs, Saddlehorn, Texas Frontera and the pipeline activities of Seabrook. We receive fees for management services as well as reimbursement or payment to us for certain direct operational payroll and other overhead costs. The management fees we receive are reported as affiliate management fee revenue on our consolidated statements of income. Cost reimbursements we receive from these entities in connection with our operating services are included as reductions to costs and expenses on our consolidated statements of income and totaled $0.5 million and $1.9 million during the three months ended March 31, 2021 and 2022, respectively.

We recorded the following revenue and expense transactions from certain of these non-controlled entities in our consolidated statements of income (in millions):

	Three Months Ended March 31,
	2021		2022
Transportation and terminals revenue:
BridgeTex, pipeline capacity and storage	$	10.7	$	11.0
Double Eagle, throughput revenue	$	1.0	$	0.7
Saddlehorn, storage revenue	$	0.6	$	0.6
Operating expense:
Seabrook, storage lease and ancillary services	$	5.3	$	4.2

Our consolidated balance sheets reflected the following balances related to transactions with our non-controlled entities (in millions):

	December 31, 2021
	Trade Accounts Receivable		Other Accounts Receivable		Other Accounts Payable
BridgeTex	$	1.2	$	—	$	0.3
Double Eagle	$	0.2	$	—	$	—
HoustonLink	$	—	$	—	$	0.2
MVP	$	—	$	0.6	$	2.2
Saddlehorn	$	—	$	0.2	$	—
Seabrook	$	—	$	0.1	$	3.2

	March 31, 2022
	Trade Accounts Receivable		Other Accounts Receivable		Other Accounts Payable
BridgeTex	$	1.9	$	—	$	—
Double Eagle	$	0.2	$	—	$	—
HoustonLink	$	—	$	—	$	0.2
MVP	$	—	$	0.9	$	5.2
Saddlehorn	$	0.2	$	0.2	$	—
Seabrook	$	0.2	$	0.2	$	0.9

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

We entered into a long-term terminalling and storage contract with Seabrook for our exclusive use of dedicated tankage that provides our customers with crude oil storage capacity and dock access for crude oil imports and exports on the Texas Gulf Coast (see Note 8 – Leases for more details regarding this lease).

The financial results from MVP, Powder Springs and Texas Frontera are included in our refined products segment and the financial results from BridgeTex, Double Eagle, HoustonLink, Saddlehorn and Seabrook are included in our crude oil segment, each as earnings of non-controlled entities.

A summary of our investments in non-controlled entities (representing only our proportionate interest) follows (in millions):

Investments at December 31, 2021	$	980.8
Additional investment	0.8
Earnings of non-controlled entities:
Proportionate share of earnings	35.8
Amortization of excess investment and capitalized interest	(0.4)
Earnings of non-controlled entities	35.4
Less:
Distributions from operations of non-controlled entities	38.4
Investments at March 31, 2022	$	978.6

6.Inventory

Inventory at December 31, 2021 and March 31, 2022 was as follows (in millions): 

	December 31, 2021		March 31, 2022
Refined products	$	138.0	$	181.6
Transmix	72.4		64.5
LPGs	42.0		27.9
Crude oil	25.4		29.7
Additives	3.3		4.5
Total inventory	$	281.1	$	308.2

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

7.Debt

Long-term debt at December 31, 2021 and March 31, 2022 was as follows (in millions):

	December 31, 2021		March 31, 2022
Commercial paper	$	108.0	$	336.0
3.20% Notes due 2025	250.0		250.0
5.00% Notes due 2026	650.0		650.0
3.25% Notes due 2030	500.0		500.0
6.40% Notes due 2037	250.0		250.0
4.20% Notes due 2042	250.0		250.0
5.15% Notes due 2043	550.0		550.0
4.20% Notes due 2045	250.0		250.0
4.25% Notes due 2046	500.0		500.0
4.20% Notes due 2047	500.0		500.0
4.85% Notes due 2049	500.0		500.0
3.95% Notes due 2050	800.0		800.0
Face value of long-term debt	5,108.0		5,336.0
Unamortized debt issuance costs(1)	(37.8)		(37.2)
Net unamortized debt premium(1)	18.6		18.4
Long-term debt, net	$	5,088.8	$	5,317.2

(1)        Debt issuance costs and note discounts and premiums are being amortized or accreted to the applicable notes over the respective lives of those notes.

All of the instruments detailed in the table above are senior indebtedness.

Other Debt

Revolving Credit Facility. At March 31, 2022, the total borrowing capacity under our revolving credit facility maturing in May 2024 was $1.0 billion. Any borrowings outstanding under this facility are classified as long-term debt on our consolidated balance sheets. Borrowings under the facility are unsecured and bear interest at LIBOR plus a spread ranging from 0.875% to 1.500% based on our credit ratings. Additionally, an unused commitment fee is assessed at a rate between 0.075% and 0.200% depending on our credit ratings. The unused commitment fee was 0.125% at March 31, 2022. Borrowings under this facility may be used for general purposes, including capital expenditures. As of December 31, 2021 and March 31, 2022, there were no borrowings outstanding under this facility and $3.5 million was obligated for letters of credit. Amounts obligated for letters of credit are not reflected as debt on our consolidated balance sheets, but decrease our borrowing capacity under this facility.

Our revolving credit facility requires us to maintain a specified ratio of consolidated debt to EBITDA (as defined in the credit agreement) of no greater than 5.0 to 1.0. In addition, the revolving credit facility and the indentures under which our senior notes were issued contain covenants that limit our ability to, among other things, incur indebtedness secured by certain liens or encumber our assets, engage in certain sale-leaseback transactions and consolidate, merge or dispose of all or substantially all of our assets. We were in compliance with these covenants as of and during the three months ended March 31, 2022.

Commercial Paper Program. We have a commercial paper program under which we may issue commercial paper notes in an amount up to the available capacity under our $1.0 billion revolving credit facility. The maturities of the commercial paper notes vary, but may not exceed 397 days from the date of issuance. Because the commercial paper we can issue is limited to amounts available under our revolving credit facility, amounts

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

outstanding under the program are classified as long-term debt. The commercial paper notes are sold under customary terms in the commercial paper market and are issued at a discount from par, or alternatively, are sold at par and bear varying interest rates on a fixed or floating basis. Commercial paper borrowings outstanding at March 31, 2022 were $336.0 million. The weighted average interest rate for commercial paper borrowings based on the number of days outstanding was 0.5% for the three months ended March 31, 2022.

8.Leases

We entered into a long-term terminalling and storage contract with Seabrook for our exclusive use of dedicated tankage that provides our customers with crude oil storage capacity and dock access for crude oil imports and exports on the Texas Gulf Coast.

The following tables provide information about our third-party and Seabrook operating leases (in millions):

	Three Months Ended March 31, 2021						Three Months Ended March 31, 2022
	Third-Party Leases		Seabrook Lease		All Leases		Third-Party Leases		Seabrook Lease		All Leases
Total lease expense	$	7.0	$	5.3	$	12.3	$	6.2	$	4.2	$	10.4

	December 31, 2021						March 31, 2022
	Third-Party Leases		Seabrook Lease		All Leases		Third-Party Leases		Seabrook Lease		All Leases
Current lease liability	$	17.8	$	8.0	$	25.8	$	21.0	$	9.7	$	30.7
Long-term lease liability	$	102.8	$	44.5	$	147.3	$	97.7	$	40.8	$	138.5
Right-of-use asset	$	121.7	$	52.5	$	174.2	$	117.8	$	50.5	$	168.3

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

9.Employee Benefit Plans

We sponsor a defined contribution plan in which we match our employees’ qualifying contributions, resulting in additional expense to us. Expenses related to the defined contribution plan, including expense related to discontinued operations, were $3.1 million and $4.1 million for the three months ended March 31, 2021 and 2022, respectively.

In addition, we sponsor two pension plans, including one for non-union employees and one that covers union employees, and a postretirement benefit plan for certain employees. The following disclosures related to these plans include amounts related to discontinued operations. Net periodic benefit expense for the three months ended March 31, 2021 and 2022 were as follows (in millions):

	Three Months Ended				Three Months Ended
	March 31, 2021				March 31, 2022
	Pension Benefits		Other  Postretirement Benefits		Pension Benefits		Other  Postretirement Benefits
Components of net periodic benefit costs:
Service cost	$	7.4	$	0.1	$	7.1	$	0.1
Interest cost	2.4		0.1		2.7		0.1
Expected return on plan assets	(3.1)		—		(3.4)		—
Amortization of actuarial loss	1.5		0.1		1.1		0.1
Net periodic benefit cost	$	8.2	$	0.3	$	7.5	$	0.3

The service component of our net periodic benefit costs is presented in operating expense and G&A expense, and the non-service components are presented in other (income) expense in our consolidated statements of income.

The changes in accumulated other comprehensive loss (“AOCL”) related to employee benefit plan assets and benefit obligations for the three months ended March 31, 2021 and 2022 were as follows (in millions):

	Three Months Ended				Three Months Ended
	March 31, 2021				March 31, 2022
Gains (Losses) Included in AOCL	Pension Benefits		Other Postretirement Benefits		Pension Benefits		Other Postretirement Benefits
Beginning balance	$	(117.8)	$	(10.4)	$	(92.8)	$	(10.7)
Recognition of actuarial loss amortization in income	1.5		0.1		1.1		0.1
Ending balance	$	(116.3)	$	(10.3)	$	(91.7)	$	(10.6)

Contributions estimated to be paid into the plans in 2022 are $37.2 million and $0.5 million for the pension plans and other postretirement benefit plan, respectively.

10.Long-Term Incentive Plan

The compensation committee of our board administers our long-term incentive plan (“LTIP”) covering certain of our employees and the independent directors of our board. The LTIP primarily consists of phantom units and permits the grant of awards covering an aggregate payout of 13.7 million of our common units. The estimated units remaining available under the LTIP at March 31, 2022 totaled approximately 1.8 million.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Equity-based incentive compensation expense for the three months ended March 31, 2021 and 2022, primarily recorded as G&A expense on our consolidated statements of income, was as follows (in millions):

	Three Months Ended March 31,
	2021		2022
Performance-based awards	$	2.2	$	8.0
Time-based awards	2.5		6.4
Total	$	4.7	$	14.4

On February 9, 2022, 622,986 unit awards were granted pursuant to our LTIP. These awards included both performance-based and time-based awards and have a three-year vesting period that will end on December 31, 2024.

Basic and Diluted Net Income Per Common Unit

The difference between our actual common units outstanding and our weighted average number of common units outstanding used to calculate net income per common unit is due to the impact of: (i) the phantom units issued to our independent directors, (ii) unit awards granted to retirees or employees of retirement age and (iii) the weighted average effect of units actually issued or repurchased during a period. The difference between the weighted average number of common units outstanding used for basic and diluted net income per unit calculations on our consolidated statements of income is primarily the dilutive effect of phantom unit awards granted pursuant to our long-term incentive plan, which have not yet vested in periods where contingent performance metrics have been met.

11.Derivative Financial Instruments

Commodity Derivatives

Our open futures contracts at March 31, 2022 were as follows:

Type of Contract/Accounting Methodology	Product Represented by the Contract and Associated Barrels	Maturity Dates
Commodity derivatives contract - Economic hedges	5.3 million barrels of refined products and crude oil	Between April 2022 and February 2023
Commodity derivatives contract - Economic hedges	0.7 million barrels of gas liquids	Between April 2022 and February 2023

Commodity Derivatives Contracts and Deposits Offsets

At December 31, 2021 and March 31, 2022, we had made margin deposits of $46.3 million and $130.8 million, respectively, for our commodity derivatives contracts with our counterparties, which were recorded as current assets under commodity derivatives deposits on our consolidated balance sheets. We have the right to offset the combined fair values of our open derivatives contracts against our margin deposits under a master netting arrangement for each counterparty; however, we have elected to present the combined fair values of our open derivatives contracts separately from the related margin deposits on our consolidated balance sheets. Additionally, we have the right to offset the fair values of our derivatives contracts together for each counterparty, which we have elected to do, and we report the combined net balances on our consolidated balance sheets. A schedule of the

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

derivative amounts we have offset and the deposit amounts we could offset under master netting arrangements are provided below as of December 31, 2021 and March 31, 2022 (in millions):

Description	Gross Amounts of Recognized Liabilities		Gross Amounts of Assets Offset in the Consolidated Balance Sheets		Net Amounts of Liabilities Presented in the Consolidated Balance Sheets		Margin Deposit Amounts Not Offset in the Consolidated Balance Sheets		Net Asset Amount(1)
As of December 31, 2021	$	(22.3)	$	5.1	$	(17.2)	$	46.3	$	29.1
As of March 31, 2022	$	(59.2)	$	11.8	$	(47.4)	$	130.8	$	83.4

(1) Amount represents the maximum loss we would incur if all of our counterparties failed to perform on their derivative contracts.

Basis Derivative Agreement

During 2019, we entered into a basis derivative agreement with a joint venture co-owner’s affiliate, and, contemporaneously, that affiliate entered into an intrastate transportation services agreement with the joint venture. Settlements under the basis derivative agreement are determined based on the basis differential of crude oil prices at different market locations and a notional volume of 30,000 barrels per day. As a result, we account for this agreement as a derivative and recognize the changes in fair value based on forward price curves for crude oil in West Texas and the Houston Gulf Coast in other operating income (expense) in our consolidated statements of income. The liability for this agreement at December 31, 2021 was $1.5 million.

Impact of Derivatives on Our Financial Statements

Comprehensive Income

The changes in derivative activity included in AOCL for the three months ended March 31, 2021 and 2022 were as follows (in millions):

	Three Months Ended
	March 31,
Derivative Losses Included in AOCL	2021		2022
Beginning balance	$	(55.0)	$	(51.5)
Reclassification of net loss on cash flow hedges to income	0.9		0.9
Ending balance	$	(54.1)	$	(50.6)

The following is a summary of the effect on our consolidated statements of income for the three months ended March 31, 2021 and 2022 of derivatives that were designated as cash flow hedges (in millions):

	Interest Rate Contracts
	Location of Loss Reclassified from AOCL into  Income	Amount of Loss Reclassified from AOCL into Income
Three Months Ended March 31, 2021	Interest expense	$	(0.9)
Three Months Ended March 31, 2022	Interest expense	$	(0.9)

As of March 31, 2022, the net loss estimated to be classified to interest expense over the next twelve months from AOCL is approximately $3.5 million. This amount relates to the amortization of losses on interest rate contracts over the life of the related debt instruments.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The following table provides a summary of the effect on our consolidated statements of income for the three months ended March 31, 2021 and 2022 of derivatives that were not designated as hedging instruments (in millions):

		Amount of Gain (Loss) Recognized on Derivatives
		Three Months Ended
	Location of Gain (Loss) Recognized on Derivatives	March 31,
Derivative Instrument		2021		2022
Commodity derivatives contracts	Product sales revenue	$	(52.7)	$	(116.4)
Commodity derivatives contracts	Cost of product sales	$	1.4	$	8.6
Basis derivative agreement	Other operating income (expense)	$	(0.7)	$	(2.1)
	Total	$	(52.0)	$	(109.9)

The impact of the derivatives in the above table was reflected as cash from operations on our consolidated statements of cash flows.

Balance Sheets

The following tables provide a summary of the fair value of derivatives, which are presented on a net basis in our consolidated balance sheets, that were not designated as hedging instruments as of December 31, 2021 and March 31, 2022 (in millions):

	December 31, 2021
	Asset Derivatives			Liability Derivatives
Derivative Instrument	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Commodity derivatives contracts	Commodity derivatives contracts, net	$	5.1	Commodity derivatives contracts, net	$	22.3
Basis derivative agreement	Other current assets	—		Other current liabilities	1.5
	Total	$	5.1	Total	$	23.8
	March 31, 2022
	Asset Derivatives			Liability Derivatives
Derivative Instrument	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Commodity derivatives contracts	Commodity derivatives contracts, net	$	11.8	Commodity derivatives contracts, net	$	59.2

12.Fair Value

Fair Value Methods and Assumptions - Financial Assets and Liabilities

We used the following methods and assumptions in estimating fair value of our financial assets and liabilities:

•Commodity derivatives contracts. These include exchange-traded and over-the-counter derivative contracts related to petroleum products. These contracts are carried at fair value on our consolidated balance sheets. The exchange-traded contracts are valued based on quoted prices in active markets, while the over-the-counter contracts are valued based on observable market data inputs including published commodity pricing data. See Note 11 – Derivative Financial Instruments for further disclosures regarding these contracts.

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•Basis derivative agreement. During 2019, we entered into a basis derivative agreement with a joint venture co-owner’s affiliate, and, contemporaneously, that affiliate entered into an intrastate transportation services agreement with the joint venture. Settlements under the basis derivative agreement are determined based on the basis differential of crude oil prices at different market locations and a notional volume of 30,000 barrels per day (see Note 11 - Derivative Financial Instruments for further disclosures regarding this agreement). The fair value of this derivative was calculated based on observable market data inputs, including published commodity pricing data and market interest rates. The key inputs in the fair value calculation include the forward price curves for crude oil, the implied forward correlation in crude oil prices between West Texas and the Houston Gulf Coast, and the implied forward volatility for crude oil futures contracts.

•Long-term receivables. These include payments receivable under a sales-type leasing arrangement and payments due to us for environmental liability insurance. These receivables were recorded at fair value on our consolidated balance sheets, using then-current market rates to estimate the present value of future cash flows.

•Contractual obligations. At March 31, 2022, these primarily included a long-term contractual obligation we entered into in connection with the 2020 sale of three marine terminals to a subsidiary of Buckeye. This obligation requires us to perform certain environmental remediation work on Buckeye’s behalf at the New Haven, Connecticut terminal. This contractual obligation was recorded at fair value on our consolidated balance sheets upon initial recognition and was calculated using our best estimate of potential outcome scenarios to determine our liability for the remediation costs required in this agreement.

•Debt. The fair value of our publicly traded notes was based on the prices of those notes at December 31, 2021 and March 31, 2022; however, where recent observable market trades were not available, prices were determined using adjustments to the last traded value for that debt issuance or by adjustments to the prices of similar debt instruments of peer entities that are actively traded. The carrying amount of borrowings, if any, under our revolving credit facility and our commercial paper program approximates fair value due to the frequent repricing of these obligations.

Fair Value Measurements - Financial Assets and Liabilities

The following tables summarize the carrying amounts, fair values and fair value measurements recorded or disclosed as of December 31, 2021 and March 31, 2022 based on the three levels established by ASC 820, Fair Value Measurements and Disclosures (in millions):

Assets (Liabilities)					Fair Value Measurements as of December 31, 2021 using:
	Carrying Amount		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Commodity derivatives contracts	$	(17.2)	$	(17.2)	$	(18.6)	$	1.4	$	—
Basis derivative agreement	$	(1.5)	$	(1.5)	$	—	$	(1.5)
Long-term receivables	$	10.1	$	10.1	$	—	$	—	$	10.1
Contractual obligations	$	(9.8)	$	(9.8)	$	—	$	—	$	(9.8)
Debt	$	(5,088.8)	$	(5,711.5)	$	—	$	(5,711.5)	$	—

24

MAGELLAN MIDSTREAM PARTNERS, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Assets (Liabilities)					Fair Value Measurements as of March 31, 2022 using:
	Carrying Amount		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Commodity derivatives contracts	$	(47.4)	$	(47.4)	$	(50.5)	$	3.1	$	—
Long-term receivables	$	9.8	$	9.8	$	—	$	—	$	9.8
Contractual obligations	$	(9.6)	$	(9.6)	$	—	$	—	$	(9.6)
Debt	$	(5,317.2)	$	(5,409.5)	$	—	$	(5,409.5)	$	—

13.Commitments and Contingencies

Corpus Christi Terminal Proceeding. On April 11, 2022, the State of Texas, through its Attorney General on behalf of the Texas Commission on Environmental Quality (“TCEQ”), brought an action for alleged violations of the Texas Clean Air Act in connection with a December 2020 fire at our Corpus Christi, Texas terminal. The TCEQ is seeking statutory civil penalties and statutory attorney’s fees over $0.3 million but not more than $1.0 million. While the outcome cannot be predicted with certainty, we believe the ultimate resolution of this matter will not have a material adverse effect on our business.

Hurricane Harvey Enforcement Proceeding. In July 2018, we received a Notice of Enforcement letter from the TCEQ alleging two air emission violations at our Galena Park, Texas terminal that occurred during Hurricane Harvey in third quarter 2017. The penalties associated with these alleged violations are expected to be approximately $0.4 million. While the outcome cannot be predicted with certainty, we believe the ultimate resolution of this matter will not have a material adverse effect on our business.

Butane Blending Patent Infringement Proceeding. In October 2017, Sunoco Partners Marketing & Terminals L.P. (“Sunoco”) brought an action for patent infringement in the U.S. District Court for the District of Delaware alleging Magellan Midstream Partners, L.P. (“Magellan”) and Powder Springs Logistics, LLC (“Powder Springs”) were infringing patents relating to butane blending at the Powder Springs facility located in Powder Springs, Georgia. Sunoco subsequently submitted pleadings alleging that Magellan was also infringing various patents related to butane blending at eight Magellan facilities, in addition to Powder Springs. Sunoco sought monetary damages, attorneys’ fees and a permanent injunction enjoining Powder Springs from infringing the subject patents. A jury trial concluded on December 6, 2021, at which the jury found Magellan willfully infringed the three patents in suit and awarded damages of approximately $9.4 million against Magellan relating to the eight Magellan facilities at issue. The jury further found that Powder Springs willfully infringed the one patent at issue relating to the Powder Springs facility and awarded approximately $2.8 million against Magellan and Powder Springs relating to that facility. Sunoco requested that the court enhance the damages award based upon the jury’s finding of willfulness, and that the court award additional damages and pre- and post-judgment interest. Magellan and Powder Springs have filed post-trial pleadings opposing Sunoco’s request for enhanced damages and challenging the findings of liability and willfulness. The final determination of the trial court is subject to potential future appeals by either or both parties to the litigation. The amounts we have accrued in relation to the claims are immaterial, and although it is not possible to predict the ultimate outcome, we believe the final resolution of this matter will not have a material adverse effect on our business.

25

MAGELLAN MIDSTREAM PARTNERS, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Environmental Liabilities

Liabilities recognized for estimated environmental costs were $9.8 million and $9.7 million at December 31, 2021 and March 31, 2022, respectively. We have classified environmental liabilities as current or noncurrent based on management’s estimates regarding the timing of actual payments. Environmental expenses recognized as a result of changes in our environmental liabilities are included in operating expenses on our consolidated statements of income. Environmental expenses were $1.1 million and $0.9 million for the three months ended March 31, 2021 and 2022, respectively.

Other

In first quarter 2020, we entered into a long-term contractual obligation in connection with the sale of three marine terminals to Buckeye. This obligation requires us to perform certain environmental remediation work on Buckeye’s behalf at the New Haven, Connecticut terminal. At December 31, 2021, our balance sheet included a current liability of $0.5 million and a noncurrent liability of $8.9 million, and as of March 31, 2022, our balance sheet included a current liability of $0.3 million and a noncurrent liability of $8.9 million, reflecting the fair values of these obligations.

We have entered into an agreement to guarantee our 50% pro rata share, up to $25.0 million, of contractual obligations under the Powder Springs’ credit facility. As of March 31, 2022, our consolidated balance sheets reflected a $0.4 million other current liability and a corresponding increase in our investment in non-controlled entities on our consolidated balance sheets to reflect the fair value of this guarantee.

We and the non-controlled entities in which we own an interest are a party to various other claims, legal actions and complaints. While the results cannot be predicted with certainty, management believes the ultimate resolution of these claims, legal actions and complaints after consideration of amounts accrued, insurance coverage or other indemnification arrangements will not have a material adverse effect on our business.

14.Related Party Transactions

Stacy Methvin is an independent member of our board and also serves as a director of one of our customers. We received tariff, terminalling and other ancillary revenue from this customer of $11.1 million and $15.1 million for the three months ended March 31, 2021 and 2022, respectively. We recorded receivables of $5.4 million and $5.1 million from this customer at December 31, 2021 and March 31, 2022, respectively. 

See Note 5 – Investments in Non-Controlled Entities and Note 8 – Leases for details of transactions with our joint ventures.

26

MAGELLAN MIDSTREAM PARTNERS, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

15.Partners’ Capital and Distributions

Partners’ Capital

Our board authorized the repurchase of up to $1.5 billion of our common units through 2024. The timing, price and actual number of common units repurchased will depend on a number of factors including our expected expansion capital spending needs, excess cash available, balance sheet metrics, legal and regulatory requirements, market conditions and the trading price of our common units. The repurchase program does not obligate us to acquire any particular amount of common units and may be suspended or discontinued at any time.

The following table details the changes in the number of our common units outstanding from December 31, 2021 through March 31, 2022:

Common units outstanding on December 31, 2021	212,387,990
Units repurchased during 2022	(1,042,035)
January 2022—Settlement of employee LTIP awards	200,949
During 2022—Other(1)	14,460
Common units outstanding on March 31, 2022	211,561,364

(1) Common units issued to settle the equity-based retainers paid to certain independent directors of our board.

Distributions

Distributions we paid during 2021 and 2022 were as follows (in millions, except per unit amounts):

Payment Date	Per Unit  Distribution Amount			Total Distribution
2/12/2021		$	1.0275		$	229.4
5/14/2021		1.0275			229.0
8/13/2021		1.0275			226.6
11/12/2021		1.0375			221.4
Total		$	4.1200		$	906.4
2/14/2022		$	1.0375		$	220.6
5/13/2022(a)		1.0375			219.5
Total		$	2.0750		$	440.1

(a) Our board declared this distribution in April 2022 to be paid on May 13, 2022 to unitholders of record at the close of business on May 2, 2022.

27

MAGELLAN MIDSTREAM PARTNERS, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

16.Subsequent Events

Recognizable events

No recognizable events occurred subsequent to March 31, 2022.

Non-recognizable events

On April 21, 2022, Robert G. Croyle notified the board of his decision to retire effective April 30, 2022 after 13 years of service. Following Mr. Croyle’s retirement, Sivasankaran Somasundaram was elected as an independent board member beginning May 1, 2022.

Distribution. In April 2022, our board declared a quarterly distribution of $1.0375 per unit for the period of January 1, 2022 through March 31, 2022. This quarterly distribution will be paid on May 13, 2022 to unitholders of record on May 2, 2022.

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ITEM 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Introduction

We are a publicly traded limited partnership principally engaged in the transportation, storage and distribution of refined petroleum products and crude oil. As of March 31, 2022, our asset portfolio, excluding assets associated with discontinued operations, consisted of:

•our refined products segment, comprised of our approximately 9,800-mile refined petroleum products pipeline system with 54 terminals and two marine storage terminals (one of which is owned through a joint venture); and

•our crude oil segment, comprised of approximately 2,200 miles of crude oil pipelines, a condensate splitter and 39 million barrels of aggregate storage capacity, of which approximately 29 million barrels are used for contract storage. Approximately 1,000 miles of these pipelines, the condensate splitter and 31 million barrels of this storage capacity (including 25 million barrels used for contract storage) are wholly-owned, with the remainder owned through joint ventures.

The following discussion provides an analysis of the results for each of our operating segments, an overview of our liquidity and capital resources and other items related to our partnership. The following discussion and analysis should be read in conjunction with (i) our accompanying interim consolidated financial statements and related notes and (ii) our consolidated financial statements, related notes and management’s discussion and analysis of financial condition and results of operations included in our Annual Report on Form 10-K for the year ended December 31, 2021.

Recent Developments

Tariff Rate Reduction. In January 2022, the FERC issued an order on rehearing lowering the previously approved 5-year index methodology, which began July 1, 2021, from the producer price index for finished goods (“PPI-FG”) plus 0.78% to PPI-FG minus 0.21% effective March 1, 2022. As a result of this order, on March 1, 2022, we reduced the tariff rates on the portion of our refined products shipments that are regulated by this index methodology representing approximately 30% of our total refined products shipments.

Distribution. In April 2022, our board declared a quarterly distribution of $1.0375 per unit for the period of January 1, 2022 through March 31, 2022. This quarterly distribution will be paid on May 13, 2022 to unitholders of record on May 2, 2022.

Results of Operations

We believe that investors benefit from having access to the same financial measures utilized by management. Operating margin, which is presented in the following table, is an important measure used by management to evaluate the economic performance of our core operations. Operating margin is not a U.S. generally accepted accounting principles (“GAAP”) measure, but the components of operating margin are computed using amounts that are determined in accordance with GAAP. A reconciliation of operating margin to operating profit, which is its nearest comparable GAAP financial measure, is included in the following table. Operating profit includes expense items, such as depreciation, amortization and impairment expense and general and administrative (“G&A”) expense, which management does not focus on when evaluating the core profitability of our operating segments. Additionally, product margin, which management primarily uses to evaluate the profitability of our commodity-related activities, is provided in this table. Product margin is a non-GAAP measure but the components of product sales revenue and cost of product sales are determined in accordance with GAAP. Our gas liquids blending, fractionation and other commodity-related activities generate significant revenue. However, we believe the product margin from these activities, which takes into account the related cost of product sales, better represents its importance to our results of operations.

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Three Months Ended March 31, 2021 compared to Three Months Ended March 31, 2022

	Three Months Ended March 31,				Variance Favorable  (Unfavorable)
	2021		2022		$ Change		% Change
Financial Highlights ($ in millions, except operating statistics)
Transportation and terminals revenue:
Refined products	$	297.6	$	309.5	$	11.9	4
Crude oil	116.2		114.7		(1.5)		(1)
Intersegment eliminations	(1.8)		(1.3)		0.5		28
Total transportation and terminals revenue	412.0		422.9		10.9		3
Affiliate management fee revenue	5.4		5.7		0.3		6
Operating expenses:
Refined products	91.5		88.2		3.3		4
Crude oil	39.2		38.8		0.4		1
Intersegment eliminations	(3.4)		(2.8)		(0.6)		(18)
Total operating expenses	127.3		124.2		3.1		2
Product margin:
Product sales revenue	213.7		246.1		32.4		15
Cost of product sales	170.9		243.4		(72.5)		(42)
Product margin	42.8		2.7		(40.1)		(94)
Other operating income (expense)	(0.4)		(2.0)		(1.6)		(400)
Earnings of non-controlled entities	39.1		35.4		(3.7)		(9)
Operating margin	371.6		340.5		(31.1)		(8)
Depreciation, amortization and impairment expense	54.6		57.7		(3.1)		(6)
G&A expense	46.0		62.8		(16.8)		(37)
Operating profit	271.0		220.0		(51.0)		(19)
Interest expense (net of interest income and interest capitalized)	56.4		56.8		(0.4)		(1)
Gain on disposition of assets	—		(0.2)		0.2		—
Other (income) expense	1.1		0.6		0.5		45
Income from continuing operations before provision for income taxes	213.5		162.8		(50.7)		(24)
Provision for income taxes	0.8		0.8		—		—
Income from continuing operations	212.7		162.0		(50.7)		(24)
Income from discontinued operations	8.6		3.5		(5.1)		(59)
Net income	$	221.3	$	165.5	$	(55.8)	(25)
Operating Statistics
Refined products:
Transportation revenue per barrel shipped	$	1.672	$	1.635
Volume shipped (million barrels):
Gasoline	65.0		75.6
Distillates	46.5		47.6
Aviation fuel	6.1		7.4
LPGs	0.5		0.6
Total volume shipped	118.1		131.2
Crude oil:
Magellan 100%-owned assets:
Transportation revenue per barrel shipped(1)	$	0.789	$	0.843
Volume shipped (million barrels)(1)	46.5		41.9
Terminal average utilization (million barrels per month)	25.5		25.2
Select joint venture pipelines:
BridgeTex - volume shipped (million barrels)(2)	26.9		25.5
Saddlehorn - volume shipped (million barrels)(3)	16.1		20.0

(1) Includes shipments related to our crude oil marketing activities.

(2) These volumes reflect the total shipments for the BridgeTex pipeline, which is owned 30% by us.

(3) These volumes reflect the total shipments for the Saddlehorn pipeline, which is owned 30% by us.

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Transportation and terminals revenue increased $10.9 million primarily resulting from:

•an increase in refined products revenue of $11.9 million primarily due to increased transportation volumes as a result of the continued demand recovery from pandemic levels as well as additional contributions from our Texas pipeline expansion projects. Average transportation rates were slightly lower as a higher proportion of short-haul shipments, which move at a lower tariff, more than offset the mid-year 2021 overall tariff increase. We also earned less storage revenue due to lower utilization and rates following recent contract expirations; and

•a decrease in crude oil revenue of $1.5 million primarily due to less storage revenue due to lower utilization and rates following recent contract expirations. Otherwise, higher average rates on our Longhorn pipeline and higher terminal throughput fees as a result of more customers utilizing a simplified pricing structure for services in the Houston area offset fewer tariff movements on our Houston distribution system.

Operating expenses decreased $3.1 million primarily resulting from:

•a decrease in refined products expenses of $3.3 million. More favorable product overages (which reduce operating expenses), related in part to higher commodity prices in the current period, more than offset higher property taxes as a result of recent expansion projects, higher integrity spending related to the timing of maintenance work and higher power costs, primarily due to the benefit of gains on our power hedges in the prior year driven by the 2021 winter storms; and

•a decrease in crude oil expenses of $0.4 million. Lower integrity spending related to the timing of maintenance work and lower pipeline rental costs resulting from new agreements were mostly offset by higher power costs, as the prior year benefited from gains on power hedges during the 2021 winter storms.

Product margin decreased $40.1 million primarily due to recognition of losses on futures contracts in the current year versus gains in the prior year, slightly offset by higher margins on our gas liquids blending activities in the current period.

Other operating expense was $1.6 million unfavorable in part due to higher losses recognized on a basis derivative agreement during the current period.

Earnings of non-controlled entities decreased $3.7 million primarily due to the sale of a portion of our interest in MVP during second quarter 2021.

Depreciation, amortization and impairment expense increased $3.1 million primarily due to asset additions.

G&A expense increased $16.8 million primarily due to higher incentive compensation costs as a result of expenses related to the retirement agreement for our former chief executive officer as well as overall improved financial results.

Interest expense, net of interest income and interest capitalized, increased $0.4 million primarily due to higher debt outstanding. Our weighted average debt outstanding was $5.3 billion in first quarter 2022 compared to $5.1 billion in first quarter 2021. The weighted average interest rate was 4.2% in first quarter 2022 compared to 4.4% in first quarter 2021.

Income from discontinued operations decreased by $5.1 million primarily due to unrealized losses on futures contracts associated with gas liquids blending hedges at the independent terminals.

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Adjusted EBITDA, Distributable Cash Flow and Free Cash Flow

In the following tables, we present the financial measures of adjusted EBITDA, distributable cash flow (“DCF”) and free cash flow (“FCF”), which are non-GAAP measures. These measures include the results of our discontinued operations.

Adjusted EBITDA is an important measure utilized by management and the investment community to assess the financial results of a company. A reconciliation of adjusted EBITDA to net income, the nearest comparable GAAP measure, is included in the table below.

Our partnership agreement requires that all of our available cash, less amounts reserved by our board, be distributed to our unitholders. DCF is used by management to determine the amount of cash that our operations generated, after maintenance capital spending, that is available for distribution to our unitholders, as well as a basis for recommending to our board the amount of distributions to be paid each period. We also use DCF as the basis for calculating our performance-based equity long-term incentive compensation. A reconciliation of DCF to net income, the nearest comparable GAAP measure, is included in the table below.

FCF is a financial metric used by many investors and others in the financial community to measure the amount of cash generated by a company during a period after accounting for all investing activities, including both maintenance and expansion capital spending, as well as proceeds from divestitures. We believe FCF is important to the financial community as it reflects the amount of cash available for distributions, additional expansion capital opportunities, equity repurchases, debt reduction or other partnership uses. A reconciliation of FCF to net income and to net cash provided by operating activities, which is the nearest comparable GAAP measure, is included in the following tables.

Since the non-GAAP measures presented here include adjustments specific to us, they may not be comparable to similarly-titled measures of other companies.

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Adjusted EBITDA, DCF and FCF are non-GAAP measures. A reconciliation of each of these measures to net income for the three months ended March 31, 2021 and 2022 is as follows (in millions):

	Three Months Ended March 31,
	2021		2022
Net income	$	221.3	$	165.5
Interest expense, net	56.3		56.8
Depreciation, amortization and impairment(1)	59.2		57.7
Equity-based incentive compensation(2)	(1.5)		5.5
Gain on disposition of assets(3)	—		(0.2)
Commodity-related adjustments:
Derivative (gains) losses recognized in the period associated with future transactions(4)	17.4		56.7
Derivative gains (losses) recognized in previous periods associated with transactions completed in the period(4)	(22.4)		(11.2)
Inventory valuation adjustments(5)	1.4		2.8
Total commodity-related adjustments	(3.6)		48.3
Distributions from operations of non-controlled entities in excess of earnings	12.3		3.0
Adjusted EBITDA	344.0		336.6
Interest expense, net, excluding debt issuance cost amortization	(55.5)		(56.0)
Maintenance capital(6)	(12.1)		(15.2)
Distributable cash flow	$	276.4	$	265.4
Expansion capital(7)	(10.5)		(26.1)
Proceeds from disposition of assets(3)	0.6		0.2
Free cash flow	$	266.5	$	239.5
Distributions paid	(229.4)		(220.6)
Free cash flow after distributions	$	37.1	$	18.9

(1)    Depreciation, amortization and impairment expense is excluded from DCF to the extent it represents a non-cash expense.

(2)    Because we intend to satisfy vesting of unit awards under our equity-based long-term incentive compensation plan with the issuance of common units, expenses related to this plan generally are deemed non-cash and excluded for DCF purposes. The amounts above have been reduced by cash payments associated with the plan, which are primarily related to tax withholdings.

(3)    Gains on disposition of assets are excluded from DCF to the extent they are not related to our ongoing operations, while proceeds from disposition of assets exclude the related gains to the extent they are already included in our calculation of DCF.

(4)    Certain derivatives have not been designated as hedges for accounting purposes and the mark-to-market changes of these derivatives are recognized currently in net income. We exclude the net impact of these derivatives from our determination of DCF until the transactions are settled and, where applicable, the related products are sold. 

(5)    We adjust DCF for lower of average cost or net realizable value adjustments related to inventory and firm purchase commitments as well as market valuation of short positions recognized each period as these are non-cash items. In subsequent periods when we sell or purchase the related products, we recognize these valuation adjustments in DCF.

(6)    Maintenance capital expenditures maintain our existing assets and do not generate incremental DCF (i.e. incremental returns to our unitholders). For this reason, we deduct maintenance capital expenditures to determine DCF.

(7) Includes additions to property, plant and equipment (excluding maintenance capital and capital-related changes in accounts payable and other current liabilities), acquisitions and investments in non-controlled entities, net of distributions from returns of investments in non-controlled entities and deposits from undivided joint interest third parties.

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A reconciliation of FCF to net cash provided by operating activities for the three months ended March 31, 2021 and 2022 is as follows (in millions):

	Three Months Ended March 31,
	2021		2022
Net cash provided by operating activities	$	240.4	$	100.4
Changes in operating assets and liabilities	57.7		145.5
Net cash provided (used) in investing activities	(31.2)		(46.6)
Payments associated with settlement of equity-based incentive compensation	(6.2)		(8.9)
Settlement cost, amortization of prior service credit and actuarial loss	(1.6)		(1.2)
Changes in accrued capital items	9.3		5.5
Commodity-related adjustments(1)	(3.6)		48.3
Other	1.7		(3.5)
Free cash flow	$	266.5	$	239.5
Distributions paid	(229.4)		(220.6)
Free cash flow after distributions	$	37.1	$	18.9

(1) Please refer to the preceding table for a description of these commodity-related adjustments.

Liquidity and Capital Resources

Cash Flows and Capital Expenditures

Operating Activities. Net cash provided by operating activities was $240.4 million and $100.4 million for the three months ended March 31, 2021 and 2022, respectively. The $140.0 million decrease in 2022 was due to changes in our working capital and lower net income as previously described, slightly offset by adjustments for non-cash items and distributions in excess of earnings of our non-controlled entities.

Investing Activities. Net cash used by investing activities for the three months ended March 31, 2021 and 2022 was $31.2 million and $46.6 million, respectively, including $29.7 million and $44.9 million used for capital expenditures for those same periods in 2021 and 2022, respectively.

Financing Activities. Net cash used by financing activities for the three months ended March 31, 2021 and 2022 was $218.6 million and $51.5 million, respectively. During the 2022 period, we paid distributions of $220.6 million to our unitholders and repurchased common units for $50.0 million. Additionally, we had net commercial paper borrowings of $228.0 million. Also, in January 2022, our equity-based incentive compensation awards that vested December 31, 2021 were settled by issuing 215,409 common units and distributing those units to the long-term incentive plan (“LTIP”) participants, resulting in payments primarily associated with tax withholdings of $8.9 million. During the 2021 period, we paid distributions of $229.4 million to our unitholders and had net commercial paper borrowings of $17.0 million. Also, in January 2021, our equity-based incentive compensation awards that vested December 31, 2020 were settled by issuing 163,007 common units and distributing those units to the LTIP participants, resulting in payments primarily associated with tax withholdings of $6.2 million.

The quarterly distribution amount related to first quarter 2022 earnings is $1.0375 per unit (to be paid in second quarter 2022). If we were to continue paying distributions at this level on the number of common units currently outstanding, total distributions of approximately $878 million would be paid to our unitholders related to 2022 earnings. Management believes we will have sufficient DCF to fund these distributions.

34

Capital Requirements

Capital spending for our business consists primarily of:

•Maintenance capital expenditures. These expenditures include costs required to maintain equipment reliability and safety and to address environmental and other regulatory requirements rather than to generate incremental DCF; and

•Expansion capital expenditures. These expenditures are undertaken primarily to generate incremental DCF and include costs to acquire additional assets to grow our business and to expand or upgrade our existing facilities and to construct new assets, which we refer to collectively as organic growth projects. Organic growth projects include, for example, capital expenditures that increase storage or throughput volumes or develop pipeline connections to new supply sources.

For the three months ended March 31, 2022, our maintenance capital spending was $15.2 million, including $1.1 million for discontinued operations. For 2022, we expect to spend approximately $80 million on maintenance capital.

During the first three months of 2022, we spent $25.3 million for our expansion capital projects and contributed $0.8 million for expansion capital projects in conjunction with our joint ventures. Based on the progress of projects already committed, we expect to spend approximately $70 million in 2022 to complete our current slate of expansion capital projects.

In addition, we may repurchase our common units through our unit repurchase program (see Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds of Part II of this report for additional details). We may also repurchase portions of our existing long-term debt from time-to-time through open market transactions, tender offers or privately-negotiated transactions.

Liquidity

Cash generated from operations is a key source of liquidity for funding debt service, maintenance capital expenditures, quarterly distributions and repurchases of common units. Additional liquidity for purposes other than quarterly distributions, such as expansion capital expenditures, is available through borrowings under our commercial paper program and revolving credit facility, as well as from other borrowings or issuances of debt or common units (see Note 7 – Debt and Note 15 – Partners’ Capital and Distributions in Item I of Part I of this report for detail of our borrowings and changes in partners’ capital).

Off-Balance Sheet Arrangements

None.

Other Items

Board of Director Changes. On April 21, 2022, Robert G. Croyle notified the board of his decision to retire effective April 30, 2022 after 13 years of service. Following Mr. Croyle’s retirement, Sivasankaran Somasundaram was elected as an independent board member beginning May 1, 2022.

Collective Bargaining Agreement. Approximately 13% of our employees are represented by the United Steel Workers (“USW”) and covered by a collective bargaining agreement that expired at the end of January 2022. We are operating under a 24-hour rolling extension of this agreement while negotiations for a new agreement continue. We continue to make progress on these negotiations and expect that we will reach a new long-term agreement with the USW; however, a prolonged work stoppage by a majority of these employees could have a material adverse effect on our business.

35

Commodity Derivative Agreements. Certain of our business activities result in our owning various commodities, which exposes us to commodity price risk. We use forward physical commodity contracts and derivative instruments to hedge against changes in prices of commodities that we expect to sell or purchase in future periods.

See Item 3. Quantitative and Qualitative Disclosures about Market Risk for further information regarding the quantities of refined products and crude oil hedged at March 31, 2022 and the fair value of open hedge and basis derivative contracts at that date.

Related Party Transactions. See Note 14 – Related Party Transactions in Item 1 of Part I of this report for detail of our related party transactions.

ITEM 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We may be exposed to market risk through changes in commodity prices and interest rates and have established policies to monitor and mitigate these market risks. We use derivative agreements to help manage our exposure to commodity price and interest rate risks.

Commodity Price Risk

Our commodity price risk primarily arises from our gas liquids blending, fractionation and petroleum products marketing activities, as well as from managing product overages and shortages associated with our refined products and crude oil pipelines and terminals. We use forward physical contracts and derivative instruments to help us manage commodity price risk.

Forward physical contracts that qualify for and are elected as normal purchases and sales are accounted for using traditional accrual accounting. As of March 31, 2022, we had commitments under forward purchase and sale contracts as follows (in millions):

	Total		2022		2023-2026		Beyond 2026
Forward purchase contracts – notional value	$	519.0	$	238.2	$	160.0	$	120.8
Forward purchase contracts – barrels	10.6		3.3		3.7		3.6
Forward sales contracts – notional value	$	49.4	$	49.4	$	—	$	—
Forward sales contracts – barrels	0.4		0.4		—		—

We generally use derivative instruments including exchange-traded futures contracts and over-the-counter forward contracts to hedge against changes in the price of petroleum products we expect to sell or purchase. We did not elect hedge accounting treatment under Accounting Standards Codification 815, Derivatives and Hedging for our open contracts and as a result we accounted for these contracts as economic hedges, with changes in fair value recognized currently in earnings. The fair value of these open contracts, representing 5.3 million barrels of petroleum products we expect to sell and 0.7 million barrels of gas liquids we expect to purchase, was a net liability of $47.4 million as of March 31, 2022. With respect to these contracts, a $10.00 per barrel increase (decrease) in the prices of petroleum products we expect to sell would result in a $53.0 million decrease (increase) in our operating profit, while a $10.00 per barrel increase (decrease) in the price of gas liquids we expect to purchase would result in a $7.0 million increase (decrease) in our operating profit. These increases or decreases in operating profit would be substantially offset by higher or lower product sales revenue or cost of product sales when the physical sale or purchase of those products occurs, respectively. These contracts may be for the purchase or sale of products in markets different from those in which we are attempting to hedge our exposure, and the related hedges may not eliminate all price risks.

36

Interest Rate Risk

Our use of variable rate debt and any future issuances of fixed rate debt expose us to interest rate risk. As of March 31, 2022, we had $336.0 million of variable rate commercial paper outstanding.

ITEM 4.CONTROLS AND PROCEDURES

We performed an evaluation of the effectiveness of the design and operation of our “disclosure controls and procedures” (as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report. We performed this evaluation under the supervision and with the participation of our management, including our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”). Based upon that evaluation, our CEO and CFO concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. Our disclosure controls and procedures include controls and procedures designed so that information required to be disclosed in reports filed or submitted under the Exchange Act is accumulated and communicated to management, including the CEO and the CFO, as appropriate, to allow timely decisions regarding required disclosure. There has been no change in our internal control over financial reporting that occurred during the quarter ended March 31, 2022 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

37

PART II

OTHER INFORMATION

ITEM 1.LEGAL PROCEEDINGS

Corpus Christi Terminal Proceeding. On April 11, 2022, the State of Texas, through its Attorney General on behalf of the Texas Commission on Environmental Quality (“TCEQ”), brought an action for alleged violations of the Texas Clean Air Act in connection with a December 2020 fire at our Corpus Christi, Texas terminal. The TCEQ is seeking statutory civil penalties and statutory attorney’s fees over $0.3 million but not more than $1.0 million. While the outcome cannot be predicted with certainty, we believe the ultimate resolution of this matter will not have a material adverse effect on our business.

Hurricane Harvey Enforcement Proceeding. In July 2018, we received a Notice of Enforcement letter from the TCEQ alleging two air emission violations at our Galena Park, Texas terminal that occurred during Hurricane Harvey in third quarter 2017. The penalties associated with these alleged violations are expected to be $0.4 million. While the outcome cannot be predicted with certainty, we believe the ultimate resolution of this matter will not have a material adverse effect on our business.

Butane Blending Patent Infringement Proceeding. On October 4, 2017, Sunoco Partners Marketing & Terminals L.P. (“Sunoco”) brought an action for patent infringement in the U.S. District Court for the District of Delaware alleging Magellan Midstream Partners, L.P. (“Magellan”) and Powder Springs Logistics, LLC (“Powder Springs”) were infringing patents relating to butane blending at the Powder Springs facility located in Powder Springs, Georgia. Sunoco subsequently submitted pleadings alleging that Magellan was also infringing various patents related to butane blending at eight Magellan facilities, in addition to Powder Springs. Sunoco sought monetary damages, attorneys’ fees and a permanent injunction enjoining Powder Springs from infringing the subject patents. A jury trial concluded on December 6, 2021, at which the jury found Magellan willfully infringed the three patents in suit and awarded damages of approximately $9.4 million against Magellan relating to the eight Magellan facilities at issue. The jury further found that Powder Springs willfully infringed the one patent at issue relating to the Powder Springs facility and awarded approximately $2.8 million against Magellan and Powder Springs relating to that facility. Sunoco requested that the court enhance the damages award based upon the jury’s finding of willfulness, and that the court award additional damages and pre- and post-judgment interest. Magellan and Powder Springs have filed post-trial pleadings opposing Sunoco’s request for enhanced damages and challenging the findings of liability and willfulness. The final determination of the trial court is subject to potential future appeals by either or both parties to the litigation. The amounts we have accrued in relation to the claims are immaterial, and although it is not possible to predict the ultimate outcome, we believe the final resolution of this matter will not have a material adverse effect on our business.

We and the non-controlled entities in which we own an interest are a party to various other claims, legal actions and complaints. While the results cannot be predicted with certainty, management believes the ultimate resolution of these claims, legal actions and complaints after consideration of amounts accrued, insurance coverage or other indemnification arrangements will not have a material adverse effect on our business. 

ITEM 1A.RISK FACTORS

In addition to the information set forth in this report, you should carefully consider the factors discussed in Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2021, which could materially affect our business, financial condition or future results. The risks described in our Annual Report on Form 10-K are not our only risks. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also could materially adversely affect our business, financial condition or operating results.

38

ITEM 2.UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Our board authorized the repurchase of up to $1.5 billion of our common units through 2024. We intend to purchase our common units from time-to-time through a variety of methods, including open market purchases and negotiated transactions, all in compliance with Securities Exchange Act Rules 10b-18, 10b5-1 or both and other applicable legal requirements. The timing, price and actual number of common units repurchased will depend on a number of factors including our expected expansion capital spending, excess cash available, balance sheet metrics, legal and regulatory requirements, market conditions and the trading price of our common units. The program does not obligate us to acquire any particular amount of common units and may be suspended or discontinued at any time.

The table below reflects our common units repurchased during 2020, 2021, 2022 and inception-to-date.

Period	Total Number of Common Units Purchased	Average Price Paid Per Unit		Total Number of Units Purchased as Part of Publicly Announced Program	Approximate Dollar Value of Units That May Yet Be Purchased under the Program (in millions)(1)
Year Ended 2020	5,568,260	$	49.74	5,568,260	$	1,223.1
Year Ended 2021	10,894,828	$	48.01	10,894,828	$	700.0
January 1-31, 2022	—	—		—	$	700.0
February 1-28, 2022	430,670	$	47.87	430,670	$	679.4
March 1-31, 2022	611,365	$	48.06	611,365	$	650.0
Year-to-Date 2022	1,042,035	$	47.98	1,042,035
Total Inception-to-Date	17,505,123			17,505,123

(1) Our program has $1.5 billion authorized for unit repurchases, which includes $750 million approved in 2020 and an additional $750 million approved in October 2021. Our program will expire on December 31, 2024.

ITEM 3.DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5.OTHER INFORMATION

None.

ITEM 6.EXHIBITS

The exhibits listed below on the Index to Exhibits are filed or incorporated by reference as part of this report.

39

INDEX TO EXHIBITS

Exhibit Number		Description
Exhibit 3.1	—	Amendment No. 2 dated January 25, 2022 to Third Amended and Restated Limited Liability Company Agreement of Magellan GP, LLC dated September 28, 2009 (filed as Exhibit 3.1 to Form 8-K filed January 31, 2022).
Exhibit 10.1	—	Retirement Agreement between Magellan GP, LLC and Michael N. Mears dated January 28, 2022 (filed as Exhibit 10.1 to Form 8-K filed January 31, 2022).
Exhibit 31.1	—	Certification of Aaron L. Milford, principal executive officer.
Exhibit 31.2	—	Certification of Jeff Holman, principal financial officer.
Exhibit 32.1	—	Section 1350 Certification of Aaron L. Milford, Chief Executive Officer.
Exhibit 32.2	—	Section 1350 Certification of Jeff Holman, Chief Financial Officer.
Exhibit 101.INS	—	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
Exhibit 101.SCH	—	XBRL Taxonomy Extension Schema Document.
Exhibit 101.CAL	—	XBRL Taxonomy Extension Calculation Linkbase Document.
Exhibit 101.DEF	—	XBRL Taxonomy Extension Definition Linkbase Document.
Exhibit 101.LAB	—	XBRL Taxonomy Extension Label Linkbase Document.
Exhibit 101.PRE	—	XBRL Taxonomy Extension Presentation Linkbase Document.

40

SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized in Tulsa, Oklahoma on May 5, 2022.

MAGELLAN MIDSTREAM PARTNERS, L.P.
By:	Magellan GP, LLC,
	its general partner
/s/ Jeff Holman
Jeff Holman
Chief Financial Officer
(Principal Accounting and Financial Officer)

41

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Aaron L. Milford, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q for the quarter ending March 31, 2022 (this “report”) of Magellan Midstream Partners, L.P. (the “registrant”);

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(s) 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 control 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(s) 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: May 5, 2022

/s/ Aaron L. Milford

Aaron L. Milford, principal executive officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Jeff Holman, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q for the quarter ending March 31, 2022 (this “report”) of Magellan Midstream Partners, L.P. (the “registrant”);

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(s) 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 control 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(s) 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: May 5, 2022

/s/ Jeff Holman

Jeff Holman, principal financial and accounting officer

EX-32.1

Exhibit 32.1

The following certification shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that section. Such certification shall not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference.

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Magellan Midstream Partners, L.P. (the “Partnership”) for the quarter ending March 31, 2022, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Aaron L. Milford, Chief Executive Officer of Magellan GP, LLC, the General Partner of the Partnership, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.

/s/ Aaron L. Milford

Aaron L. Milford, Chief Executive Officer

Date: May 5, 2022

A signed original of this written statement required by Section 906 has been provided to the Partnership and will be retained by the Partnership and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

The following certification shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that section. Such certification shall not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference.

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Magellan Midstream Partners, L.P. (the “Partnership”) for the quarter ending March 31, 2022, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jeff Holman, Chief Financial Officer of Magellan GP, LLC, the General Partner of the Partnership, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.

/s/ Jeff Holman

Jeff Holman, Chief Financial Officer

Date: May 5, 2022

A signed original of this written statement required by Section 906 has been provided to the Partnership and will be retained by the Partnership and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Cover Page - shares	3 Months Ended
	Mar. 31, 2022	May 04, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
Document Transition Report	false
Entity File Number	1-16335
Entity Registrant Name	Magellan Midstream Partners, L.P.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	73-1599053
Entity Address, Address Line One	One Williams Center
Entity Address, Address Line Two	P.O. Box 22186
Entity Address, City or Town	Tulsa
Entity Address, State or Province	OK
Entity Address, Postal Zip Code	74121-2186
City Area Code	918
Local Phone Number	574-7000
Title of 12(b) Security	Common Units
Trading Symbol	MMP
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		211,561,364
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001126975
Current Fiscal Year End Date	--12-31

XML

Consolidated Statements Of Income - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Total revenue	$ 674.7	$ 631.1
Costs and expenses:
Operating	124.2	127.3
Cost of product sales	243.4	170.9
Depreciation, amortization and impairment	57.7	54.6
General and administrative	62.8	46.0
Total costs and expenses	488.1	398.8
Other operating income (expense)	(2.0)	(0.4)
Earnings of non-controlled entities	35.4	39.1
Operating profit	220.0	271.0
Interest expense	57.3	57.0
Interest capitalized	(0.4)	(0.5)
Interest income	(0.1)	(0.1)
Gain on disposition of assets	(0.2)	0.0
Other (income) expense	0.6	1.1
Income from continuing operations before provision for income taxes	162.8	213.5
Provision for income taxes	0.8	0.8
Income from continuing operations	162.0	212.7
Income from discontinued operations	3.5	8.6
Net income	$ 165.5	$ 221.3
Earnings per common unit
Basic income from continuing operations per common unit (in dollars per share)	$ 0.76	$ 0.95
Basic income from discontinued operations per common unit (in dollars per share)	0.02	0.04
Basic net income per common unit (in dollars per share)	$ 0.78	$ 0.99
Weighted average number of common units outstanding used for basic net income per unit calculation (in shares)	212.9	223.6
Diluted income from continuing operations per common unit (in dollars per share)	$ 0.76	$ 0.95
Diluted income from discontinued operations per common unit (in dollars per share)	0.02	0.04
Diluted net income per common unit (in dollars per share)	$ 0.78	$ 0.99
Weighted average number of common units outstanding used for diluted net income per unit calculation (in shares)	212.9	223.6
Transportation and terminals revenue
Total revenue	$ 422.9	$ 412.0
Product sales revenue
Total revenue	246.1	213.7
Affiliate management fee revenue
Total revenue	$ 5.7	$ 5.4

XML

Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 165.5	$ 221.3
Other comprehensive income:
Reclassification of net loss on cash flow hedges to income	0.9	0.9
Recognition of actuarial loss amortization in income	1.2	1.6
Total other comprehensive income	2.1	2.5
Comprehensive income	$ 167.6	$ 223.8

XML

Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 4.6	$ 2.0
Trade accounts receivable	129.8	135.2
Other accounts receivable	35.0	34.6
Inventory	308.2	281.1
Commodity derivatives contracts, net	3.1	1.4
Commodity derivatives deposits	130.8	46.3
Assets held for sale	304.0	299.5
Other current assets	35.7	43.1
Total current assets	951.2	843.2
Property, plant and equipment	8,081.9	8,045.9
Less: accumulated depreciation	2,195.4	2,141.2
Net property, plant and equipment	5,886.5	5,904.7
Investments in non-controlled entities	978.6	980.8
Right-of-use asset, operating leases	168.3	174.2
Long-term receivables	9.8	10.1
Goodwill	50.1	50.1
Other intangibles (less accumulated amortization of $11.9 and $12.6 at December 31, 2021 and March 31, 2022, respectively)	42.5	43.2
Restricted cash	6.7	7.0
Other noncurrent assets	17.3	16.7
Total assets	8,111.0	8,030.0
Current liabilities:
Accounts payable	98.0	109.5
Accrued payroll and benefits	43.9	74.9
Accrued interest payable	50.0	59.0
Accrued taxes other than income	51.7	76.5
Deferred revenue	106.4	92.5
Accrued product liabilities	126.6	153.5
Commodity derivatives contracts, net	50.5	18.6
Current portion of operating lease liability	30.7	25.8
Liabilities held for sale	23.5	15.8
Other current liabilities	54.5	53.5
Total current liabilities	635.8	679.6
Long-term debt, net	5,317.2	5,088.8
Long-term operating lease liability	138.5	147.3
Long-term pension and benefits	145.8	145.0
Other noncurrent liabilities	71.0	69.5
Commitments and contingencies
Partners’ capital:
Common unitholders (212.4 units and 211.6 units outstanding at December 31, 2021 and March 31, 2022, respectively)	1,955.6	2,054.8
Accumulated other comprehensive loss	(152.9)	(155.0)
Total partners’ capital	1,802.7	1,899.8
Total liabilities and partners’ capital	$ 8,111.0	$ 8,030.0

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Finite-lived intangible assets, accumulated amortization	$ 12.6	$ 11.9
Limited partner unitholders, units outstanding (in shares)	211,561,364	212,387,990

XML

Consolidated Statements Of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Operating Activities:
Net income	$ 165.5	$ 221.3
Adjustments to reconcile net income to net cash provided by operating activities:
Income from discontinued operations	(3.5)	(8.6)
Depreciation, amortization and impairment expense	57.7	54.6
Gain on disposition of assets	(0.2)	0.0
Earnings of non-controlled entities	(35.4)	(39.1)
Distributions from operations of non-controlled entities	38.4	51.4
Equity-based incentive compensation expense	14.4	4.7
Settlement cost, amortization of prior service credit and actuarial loss	1.2	1.6
Changes in operating assets and liabilities:
Trade accounts receivable and other accounts receivable	5.0	(31.3)
Inventory	(27.1)	(46.5)
Accounts payable	(9.3)	10.1
Accrued payroll and benefits	(31.0)	(12.3)
Accrued interest payable	(9.0)	(9.0)
Accrued taxes other than income	(24.8)	(19.9)
Accrued product liabilities	(26.9)	58.9
Deferred revenue	13.9	(0.6)
Other current and noncurrent assets and liabilities	(36.3)	(7.1)
Net cash provided by operating activities of continuing operations	92.6	228.2
Net cash provided by operating activities of discontinued operations	7.8	12.2
Net cash provided by operating activities	100.4	240.4
Investing Activities:
Additions to property, plant and equipment, net	(44.9)	(29.7)
Proceeds from sale and disposition of assets	0.2	0.7
Investments in non-controlled entities	(0.8)	(1.9)
Net cash used by investing activities of continuing operations	(45.5)	(30.9)
Net cash used by investing activities of discontinued operations	(1.1)	(0.3)
Net cash used by investing activities	(46.6)	(31.2)
Financing Activities:
Distributions paid	(220.6)	(229.4)
Repurchases of common units	(50.0)	0.0
Net borrowings under revolver	228.0	17.0
Payments associated with settlement of equity-based incentive compensation	(8.9)	(6.2)
Net cash used by financing activities	(51.5)	(218.6)
Change in cash, cash equivalents and restricted cash	2.3	(9.4)
Cash, cash equivalents and restricted cash at beginning of period	9.0	22.4
Cash, cash equivalents and restricted cash at end of period	11.3	13.0
Supplemental non-cash investing activities:
Additions to property, plant and equipment	(39.4)	(20.4)
Changes in accounts payable and other current liabilities related to capital expenditures	(5.5)	(9.3)
Additions to property, plant and equipment, net	$ (44.9)	$ (29.7)

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Consolidated Statement of Partners' Capital - USD ($) $ in Millions	Total	Common Unitholders	Accumulated Other Comprehensive Loss
Beginning balance at Dec. 31, 2020	$ 2,303.8	$ 2,487.0	$ (183.2)
Comprehensive income:
Net income	221.3	221.3
Total other comprehensive income	2.5		2.5
Total comprehensive income	223.8	221.3	2.5
Distributions	(229.4)	(229.4)
Equity-based incentive compensation expense	4.7	4.7
Issuance of common units in settlement of equity-based incentive plan awards	0.5	0.5
Payments associated with settlement of equity-based incentive compensation	(6.2)	(6.2)
Other	(0.2)	(0.2)
Ending balance at Mar. 31, 2021	2,297.0	2,477.7	(180.7)
Beginning balance at Dec. 31, 2021	1,899.8	2,054.8	(155.0)
Comprehensive income:
Net income	165.5	165.5
Total other comprehensive income	2.1		2.1
Total comprehensive income	167.6	165.5	2.1
Distributions	(220.6)	(220.6)
Repurchases of common units	(50.0)	(50.0)
Equity-based incentive compensation expense	14.4	14.4
Issuance of common units in settlement of equity-based incentive plan awards	0.7	0.7
Payments associated with settlement of equity-based incentive compensation	(8.9)	(8.9)
Other	(0.3)	(0.3)
Ending balance at Mar. 31, 2022	$ 1,802.7	$ 1,955.6	$ (152.9)

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Organization, Description of Business And Basis Of Presentation

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization, Description of Business and Basis of Presentation

Organization, Description of Business and Basis of Presentation

Organization

Unless indicated otherwise, the terms “our,” “we,” “us” and similar language refer to Magellan Midstream Partners, L.P. together with its subsidiaries. Magellan Midstream Partners, L.P. is a Delaware limited partnership, and our common units are traded on the New York Stock Exchange under the ticker symbol “MMP.” Magellan GP, LLC, a wholly owned Delaware limited liability company, serves as our general partner. The board of directors of our general partner is referred to herein as our “board.”

Description of Business

We are principally engaged in the transportation, storage and distribution of refined petroleum products and crude oil. As of March 31, 2022, our asset portfolio, excluding assets associated with discontinued operations, consisted of:

•our refined products segment, comprised of our approximately 9,800-mile refined petroleum products pipeline system with 54 terminals and two marine storage terminals (one of which is owned through a joint venture); and

•our crude oil segment, comprised of approximately 2,200 miles of crude oil pipelines, a condensate splitter and 39 million barrels of aggregate storage capacity, of which approximately 29 million barrels are used for contract storage. Approximately 1,000 miles of these pipelines, the condensate splitter and 31 million barrels of this storage capacity (including 25 million barrels used for contract storage) are wholly-owned, with the remainder owned through joint ventures.

The following terms are commonly used in our industry to describe products that we transport, store, distribute or otherwise handle through our petroleum pipelines and terminals:

•refined products are the output from crude oil refineries that are primarily used as fuels by consumers. Refined products include gasoline, diesel fuel, aviation fuel, kerosene and heating oil. Diesel fuel, kerosene and heating oil are also referred to as distillates;

•transmix is a mixture that forms when different refined products are transported in pipelines. Transmix is fractionated and blended into usable refined products;

•LPGs are liquids produced as by-products of the crude oil refining process and in connection with natural gas production. LPGs include gas liquids such as butane, natural gasoline and propane;

•blendstocks are products blended with refined products to change or enhance their characteristics such as increasing a gasoline’s octane or oxygen content. Blendstocks include alkylates and oxygenates; and

•crude oil, which includes condensate, is a naturally occurring unrefined petroleum product recovered from underground that is used as feedstock by refineries, splitters and petrochemical facilities.

We use the term petroleum products to describe any, or a combination, of the above-noted products. In addition, we handle, store and distribute renewable fuels, such as ethanol and biodiesel.

Basis of Presentation

In the opinion of management, our accompanying consolidated financial statements which are unaudited, except for the consolidated balance sheet as of December 31, 2021, which is derived from our audited financial statements, include all normal and recurring adjustments necessary to present fairly our financial position as of March 31, 2022, the results of operations for the three months ended March 31, 2021 and 2022 and cash flows for the three months ended March 31, 2021 and 2022. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected for the full year ending December 31, 2022 for several reasons. Profits from our gas liquids blending activities are realized largely during the first and fourth quarters of each year. Additionally, gasoline demand, which drives transportation volumes and revenues on our refined products pipeline system, generally trends higher during the summer driving months. Further, the volatility of commodity prices impacts the profits from our commodity activities and the volume of petroleum products we transport on our pipelines. 

Pursuant to the rules and regulations of the Securities and Exchange Commission, the financial statements in

this report have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2021.

Discontinued Operations

In June 2021, we entered into an agreement to sell our independent terminals network comprised of 26 refined petroleum products terminals with approximately six million barrels of storage located primarily in the southeastern U.S. to Buckeye Partners, L.P. (“Buckeye”). The sale is expected to close upon the receipt of required regulatory approval. The related results of operations, financial position and cash flows have been classified as discontinued operations for all periods presented (see Note 2 – Discontinued Operations and Assets Held for Sale for additional details). Unless indicated otherwise, the information in the Notes to Consolidated Financial Statements relates to continuing operations.

Reclassifications

Certain prior period amounts have been reclassified to conform with the current period’s presentation, including amounts related to our discontinued operations.

Use of Estimates

The preparation of our consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities that exist at the date of our consolidated financial statements, as well as their impact on the reported amounts of revenue and expense during the reporting periods. Actual results could differ from those estimates.

New Accounting Pronouncements

We evaluate new Accounting Standards Codifications (“ASC”) and updates issued by the Financial Accounting Standards Board on an ongoing basis. There are no new accounting pronouncements that we anticipate will have a material impact on our financial statements.

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Discontinued Operations and Assets Held for Sale

3 Months Ended

Mar. 31, 2022

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations and Assets Held for Sale

Discontinued Operations and Assets Held for Sale

Summarized Results of Discontinued Operations

The following table provides the summarized results that have been reclassified from continuing operations to discontinued operations on the consolidated statements of income (in millions):

	Three Months Ended March 31,
	2021		2022
Transportation and terminals revenue	$	13.1	$	12.1
Product sales revenue	16.9		6.3
Total revenue	30.0		18.4
Costs and expenses:
Operating	3.4		3.8
Cost of product sales	13.9		10.5
Depreciation, amortization and impairment	3.5		—
General and administrative	0.6		0.6
Total costs and expenses	21.4		14.9
Income from discontinued operations	$	8.6	$	3.5

Summarized Assets and Liabilities of Discontinued Operations

The following table provides the summarized assets and liabilities classified as held for sale on the consolidated balance sheets (in millions):

	December 31, 2021		March 31, 2022
Assets:
Trade accounts receivable	$	6.3	$	5.9
Inventory	17.0		20.1
Net property, plant and equipment	272.0		274.0
Goodwill	2.7		2.7
Other assets	1.5		1.3
Total assets classified as held for sale	$	299.5	$	304.0
Liabilities:
Accounts payable	$	3.7	$	4.7
Accrued product liabilities	8.4		13.4
Other liabilities	3.7		5.4
Total liabilities classified as held for sale	$	15.8	$	23.5

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Segment Disclosures

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segment Disclosures

Segment Disclosures

Our reportable segments are strategic business units that offer different products and services. Our segments are managed separately because each segment requires different marketing strategies and business knowledge. Management evaluates performance based on segment operating margin, which includes revenue from affiliates and third-party customers, intersegment transactions, operating expense, cost of product sales, other operating (income) expense and earnings of non-controlled entities.

We believe that investors benefit from having access to the same financial measures used by management. Operating margin, which is presented in the following tables, is an important measure used by management to evaluate the economic performance of our core operations. Operating margin is not a GAAP measure, but the components of operating margin are computed using amounts that are determined in accordance with GAAP. A reconciliation of operating margin to operating profit, which is its nearest comparable GAAP financial measure, is included in the tables below. Operating profit includes depreciation, amortization and impairment expense and general and administrative (“G&A”) expense that management does not consider when evaluating the core profitability of our separate operating segments.

	Three Months Ended March 31, 2021
	(in millions)
	Refined Products		Crude Oil		Intersegment Eliminations		Total
Transportation and terminals revenue	$	297.6	$	116.2	$	(1.8)	$	412.0
Product sales revenue	184.5		29.2		—		213.7
Affiliate management fee revenue	1.6		3.8		—		5.4
Total revenue	483.7		149.2		(1.8)		631.1
Operating expense	91.5		39.2		(3.4)		127.3
Cost of product sales	140.8		30.1		—		170.9
Other operating (income) expense	(0.3)		0.7		—		0.4
Earnings of non-controlled entities	(9.2)		(29.9)		—		(39.1)
Operating margin	260.9		109.1		1.6		371.6
Depreciation, amortization and impairment expense	36.1		16.9		1.6		54.6
G&A expense	33.0		13.0		—		46.0
Operating profit	$	191.8	$	79.2	$	—	$	271.0

	Three Months Ended March 31, 2022
	(in millions)
	Refined Products		Crude Oil		Intersegment Eliminations		Total
Transportation and terminals revenue	$	309.5	$	114.7	$	(1.3)	$	422.9
Product sales revenue	241.6		4.5		—		246.1
Affiliate management fee revenue	1.8		3.9		—		5.7
Total revenue	552.9		123.1		(1.3)		674.7
Operating expense	88.2		38.8		(2.8)		124.2
Cost of product sales	233.1		10.3		—		243.4
Other operating (income) expense	(0.1)		2.1		—		2.0
Earnings of non-controlled entities	(3.7)		(31.7)		—		(35.4)
Operating margin	235.4		103.6		1.5		340.5
Depreciation, amortization and impairment expense	39.6		16.6		1.5		57.7
G&A expense	45.7		17.1		—		62.8
Operating profit	$	150.1	$	69.9	$	—	$	220.0

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Revenue

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

Statements of Income Disclosures

The following tables provide details of our revenue disaggregated by key activities that comprise our performance obligations by operating segment (in millions):

	Three Months Ended March 31, 2021
	Refined Products		Crude Oil		Intersegment Eliminations		Total
Transportation	$	193.4	$	55.0	$	—	$	248.4
Terminalling	22.6		6.1		—		28.7
Storage	49.0		29.3		(1.8)		76.5
Ancillary services	28.5		8.0		—		36.5
Lease revenue	4.1		17.8		—		21.9
Transportation and terminals revenue	297.6		116.2		(1.8)		412.0
Product sales revenue	184.5		29.2		—		213.7
Affiliate management fee revenue	1.6		3.8		—		5.4
Total revenue	483.7		149.2		(1.8)		631.1
Revenue not under the guidance of ASC 606, Revenue from Contracts with Customers:
Lease revenue	(4.1)		(17.8)		—		(21.9)
(Gains) losses from futures contracts included in product sales revenue	47.3		5.4		—		52.7
Affiliate management fee revenue	(1.6)		(3.8)		—		(5.4)
Total revenue from contracts with customers under ASC 606	$	525.3	$	133.0	$	(1.8)	$	656.5

	Three Months Ended March 31, 2022
	Refined Products		Crude Oil		Intersegment Eliminations		Total
Transportation	$	213.3	$	55.0	$	—	$	268.3
Terminalling	23.3		6.3		—		29.6
Storage	39.5		27.0		(1.3)		65.2
Ancillary services	27.6		7.9		—		35.5
Lease revenue	5.8		18.5		—		24.3
Transportation and terminals revenue	309.5		114.7		(1.3)		422.9
Product sales revenue	241.6		4.5		—		246.1
Affiliate management fee revenue	1.8		3.9		—		5.7
Total revenue	552.9		123.1		(1.3)		674.7
Revenue not under the guidance of ASC 606, Revenue from Contracts with Customers:
Lease revenue	(5.8)		(18.5)		—		(24.3)
(Gains) losses from futures contracts included in product sales revenue	108.2		8.2		—		116.4
Affiliate management fee revenue	(1.8)		(3.9)		—		(5.7)
Total revenue from contracts with customers under ASC 606	$	653.5	$	108.9	$	(1.3)	$	761.1

Balance Sheet Disclosures

The following table summarizes our accounts receivable, contract assets and contract liabilities resulting from contracts with customers (in millions):

	December 31, 2021		March 31, 2022
Accounts receivable from contracts with customers	$	134.8	$	125.1
Contract assets	$	12.5	$	13.8
Contract liabilities	$	100.1	$	112.4

For the three months ended March 31, 2022, we recognized $67.7 million of transportation and terminals revenue that was recorded in deferred revenue as of December 31, 2021.

Unfulfilled Performance Obligations

The following table provides the aggregate amount of the transaction price allocated to our unfulfilled performance obligations (“UPOs”) as of March 31, 2022 by operating segment, including the range of years remaining on our contracts with customers and an estimate of revenues expected to be recognized over the next 12 months (dollars in millions):

	Refined Products		Crude Oil		Total
Balances at March 31, 2022	$	1,800.9	$	1,023.5	$	2,824.4
Remaining terms	1 - 17 years		1 - 10 years
Estimated revenues from UPOs to be recognized in the next 12 months	$	370.4	$	249.5	$	619.9

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Investments in Non-Controlled Entities

3 Months Ended

Mar. 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

Investments in Non-Controlled Entities

Investments in Non-Controlled Entities

Our equity investments in non-controlled entities at March 31, 2022 were comprised of:

Entity	Ownership Interest
BridgeTex Pipeline Company, LLC (“BridgeTex”)	30%
Double Eagle Pipeline LLC (“Double Eagle”)	50%
HoustonLink Pipeline Company, LLC (“HoustonLink”)	50%
MVP Terminalling, LLC (“MVP”)	25%
Powder Springs Logistics, LLC (“Powder Springs”)	50%
Saddlehorn Pipeline Company, LLC (“Saddlehorn”)	30%
Seabrook Logistics, LLC (“Seabrook”)	50%
Texas Frontera, LLC (“Texas Frontera”)	50%

.

We serve as operator of BridgeTex, HoustonLink, MVP, Powder Springs, Saddlehorn, Texas Frontera and the pipeline activities of Seabrook. We receive fees for management services as well as reimbursement or payment to us for certain direct operational payroll and other overhead costs. The management fees we receive are reported as affiliate management fee revenue on our consolidated statements of income. Cost reimbursements we receive from these entities in connection with our operating services are included as reductions to costs and expenses on our consolidated statements of income and totaled $0.5 million and $1.9 million during the three months ended March 31, 2021 and 2022, respectively.

We recorded the following revenue and expense transactions from certain of these non-controlled entities in our consolidated statements of income (in millions):

	Three Months Ended March 31,
	2021		2022
Transportation and terminals revenue:
BridgeTex, pipeline capacity and storage	$	10.7	$	11.0
Double Eagle, throughput revenue	$	1.0	$	0.7
Saddlehorn, storage revenue	$	0.6	$	0.6
Operating expense:
Seabrook, storage lease and ancillary services	$	5.3	$	4.2

Our consolidated balance sheets reflected the following balances related to transactions with our non-controlled entities (in millions):

	December 31, 2021
	Trade Accounts Receivable		Other Accounts Receivable		Other Accounts Payable
BridgeTex	$	1.2	$	—	$	0.3
Double Eagle	$	0.2	$	—	$	—
HoustonLink	$	—	$	—	$	0.2
MVP	$	—	$	0.6	$	2.2
Saddlehorn	$	—	$	0.2	$	—
Seabrook	$	—	$	0.1	$	3.2

	March 31, 2022
	Trade Accounts Receivable		Other Accounts Receivable		Other Accounts Payable
BridgeTex	$	1.9	$	—	$	—
Double Eagle	$	0.2	$	—	$	—
HoustonLink	$	—	$	—	$	0.2
MVP	$	—	$	0.9	$	5.2
Saddlehorn	$	0.2	$	0.2	$	—
Seabrook	$	0.2	$	0.2	$	0.9

We entered into a long-term terminalling and storage contract with Seabrook for our exclusive use of dedicated tankage that provides our customers with crude oil storage capacity and dock access for crude oil imports and exports on the Texas Gulf Coast (see Note 8 – Leases for more details regarding this lease).

The financial results from MVP, Powder Springs and Texas Frontera are included in our refined products segment and the financial results from BridgeTex, Double Eagle, HoustonLink, Saddlehorn and Seabrook are included in our crude oil segment, each as earnings of non-controlled entities.

A summary of our investments in non-controlled entities (representing only our proportionate interest) follows (in millions):

Investments at December 31, 2021	$	980.8
Additional investment	0.8
Earnings of non-controlled entities:
Proportionate share of earnings	35.8
Amortization of excess investment and capitalized interest	(0.4)
Earnings of non-controlled entities	35.4
Less:
Distributions from operations of non-controlled entities	38.4
Investments at March 31, 2022	$	978.6

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Inventory

3 Months Ended

Mar. 31, 2022

Inventory Disclosure [Abstract]

Inventory

Inventory

Inventory at December 31, 2021 and March 31, 2022 was as follows (in millions): 

	December 31, 2021		March 31, 2022
Refined products	$	138.0	$	181.6
Transmix	72.4		64.5
LPGs	42.0		27.9
Crude oil	25.4		29.7
Additives	3.3		4.5
Total inventory	$	281.1	$	308.2

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Debt

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Debt

Debt

Long-term debt at December 31, 2021 and March 31, 2022 was as follows (in millions):

	December 31, 2021		March 31, 2022
Commercial paper	$	108.0	$	336.0
3.20% Notes due 2025	250.0		250.0
5.00% Notes due 2026	650.0		650.0
3.25% Notes due 2030	500.0		500.0
6.40% Notes due 2037	250.0		250.0
4.20% Notes due 2042	250.0		250.0
5.15% Notes due 2043	550.0		550.0
4.20% Notes due 2045	250.0		250.0
4.25% Notes due 2046	500.0		500.0
4.20% Notes due 2047	500.0		500.0
4.85% Notes due 2049	500.0		500.0
3.95% Notes due 2050	800.0		800.0
Face value of long-term debt	5,108.0		5,336.0
Unamortized debt issuance costs(1)	(37.8)		(37.2)
Net unamortized debt premium(1)	18.6		18.4
Long-term debt, net	$	5,088.8	$	5,317.2

(1)        Debt issuance costs and note discounts and premiums are being amortized or accreted to the applicable notes over the respective lives of those notes.

All of the instruments detailed in the table above are senior indebtedness.

Other Debt

Revolving Credit Facility. At March 31, 2022, the total borrowing capacity under our revolving credit facility maturing in May 2024 was $1.0 billion. Any borrowings outstanding under this facility are classified as long-term debt on our consolidated balance sheets. Borrowings under the facility are unsecured and bear interest at LIBOR plus a spread ranging from 0.875% to 1.500% based on our credit ratings. Additionally, an unused commitment fee is assessed at a rate between 0.075% and 0.200% depending on our credit ratings. The unused commitment fee was 0.125% at March 31, 2022. Borrowings under this facility may be used for general purposes, including capital expenditures. As of December 31, 2021 and March 31, 2022, there were no borrowings outstanding under this facility and $3.5 million was obligated for letters of credit. Amounts obligated for letters of credit are not reflected as debt on our consolidated balance sheets, but decrease our borrowing capacity under this facility.

Our revolving credit facility requires us to maintain a specified ratio of consolidated debt to EBITDA (as defined in the credit agreement) of no greater than 5.0 to 1.0. In addition, the revolving credit facility and the indentures under which our senior notes were issued contain covenants that limit our ability to, among other things, incur indebtedness secured by certain liens or encumber our assets, engage in certain sale-leaseback transactions and consolidate, merge or dispose of all or substantially all of our assets. We were in compliance with these covenants as of and during the three months ended March 31, 2022.

Commercial Paper Program. We have a commercial paper program under which we may issue commercial paper notes in an amount up to the available capacity under our $1.0 billion revolving credit facility. The maturities of the commercial paper notes vary, but may not exceed 397 days from the date of issuance. Because the commercial paper we can issue is limited to amounts available under our revolving credit facility, amounts

outstanding under the program are classified as long-term debt. The commercial paper notes are sold under customary terms in the commercial paper market and are issued at a discount from par, or alternatively, are sold at par and bear varying interest rates on a fixed or floating basis. Commercial paper borrowings outstanding at March 31, 2022 were $336.0 million. The weighted average interest rate for commercial paper borrowings based on the number of days outstanding was 0.5% for the three months ended March 31, 2022.

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Leases

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Leases

Leases

We entered into a long-term terminalling and storage contract with Seabrook for our exclusive use of dedicated tankage that provides our customers with crude oil storage capacity and dock access for crude oil imports and exports on the Texas Gulf Coast.

The following tables provide information about our third-party and Seabrook operating leases (in millions):

	Three Months Ended March 31, 2021						Three Months Ended March 31, 2022
	Third-Party Leases		Seabrook Lease		All Leases		Third-Party Leases		Seabrook Lease		All Leases
Total lease expense	$	7.0	$	5.3	$	12.3	$	6.2	$	4.2	$	10.4

	December 31, 2021						March 31, 2022
	Third-Party Leases		Seabrook Lease		All Leases		Third-Party Leases		Seabrook Lease		All Leases
Current lease liability	$	17.8	$	8.0	$	25.8	$	21.0	$	9.7	$	30.7
Long-term lease liability	$	102.8	$	44.5	$	147.3	$	97.7	$	40.8	$	138.5
Right-of-use asset	$	121.7	$	52.5	$	174.2	$	117.8	$	50.5	$	168.3

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Employee Benefit Plans

3 Months Ended

Mar. 31, 2022

Retirement Benefits [Abstract]

Employee Benefit Plans

Employee Benefit Plans

We sponsor a defined contribution plan in which we match our employees’ qualifying contributions, resulting in additional expense to us. Expenses related to the defined contribution plan, including expense related to discontinued operations, were $3.1 million and $4.1 million for the three months ended March 31, 2021 and 2022, respectively.

In addition, we sponsor two pension plans, including one for non-union employees and one that covers union employees, and a postretirement benefit plan for certain employees. The following disclosures related to these plans include amounts related to discontinued operations. Net periodic benefit expense for the three months ended March 31, 2021 and 2022 were as follows (in millions):

	Three Months Ended				Three Months Ended
	March 31, 2021				March 31, 2022
	Pension Benefits		Other  Postretirement Benefits		Pension Benefits		Other  Postretirement Benefits
Components of net periodic benefit costs:
Service cost	$	7.4	$	0.1	$	7.1	$	0.1
Interest cost	2.4		0.1		2.7		0.1
Expected return on plan assets	(3.1)		—		(3.4)		—
Amortization of actuarial loss	1.5		0.1		1.1		0.1
Net periodic benefit cost	$	8.2	$	0.3	$	7.5	$	0.3

The service component of our net periodic benefit costs is presented in operating expense and G&A expense, and the non-service components are presented in other (income) expense in our consolidated statements of income.

The changes in accumulated other comprehensive loss (“AOCL”) related to employee benefit plan assets and benefit obligations for the three months ended March 31, 2021 and 2022 were as follows (in millions):

	Three Months Ended				Three Months Ended
	March 31, 2021				March 31, 2022
Gains (Losses) Included in AOCL	Pension Benefits		Other Postretirement Benefits		Pension Benefits		Other Postretirement Benefits
Beginning balance	$	(117.8)	$	(10.4)	$	(92.8)	$	(10.7)
Recognition of actuarial loss amortization in income	1.5		0.1		1.1		0.1
Ending balance	$	(116.3)	$	(10.3)	$	(91.7)	$	(10.6)

Contributions estimated to be paid into the plans in 2022 are $37.2 million and $0.5 million for the pension plans and other postretirement benefit plan, respectively.

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Long-Term Incentive Plan

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

Long-Term Incentive Plan

Long-Term Incentive Plan

The compensation committee of our board administers our long-term incentive plan (“LTIP”) covering certain of our employees and the independent directors of our board. The LTIP primarily consists of phantom units and permits the grant of awards covering an aggregate payout of 13.7 million of our common units. The estimated units remaining available under the LTIP at March 31, 2022 totaled approximately 1.8 million.

Equity-based incentive compensation expense for the three months ended March 31, 2021 and 2022, primarily recorded as G&A expense on our consolidated statements of income, was as follows (in millions):

	Three Months Ended March 31,
	2021		2022
Performance-based awards	$	2.2	$	8.0
Time-based awards	2.5		6.4
Total	$	4.7	$	14.4

On February 9, 2022, 622,986 unit awards were granted pursuant to our LTIP. These awards included both performance-based and time-based awards and have a three-year vesting period that will end on December 31, 2024.

Basic and Diluted Net Income Per Common Unit

The difference between our actual common units outstanding and our weighted average number of common units outstanding used to calculate net income per common unit is due to the impact of: (i) the phantom units issued to our independent directors, (ii) unit awards granted to retirees or employees of retirement age and (iii) the weighted average effect of units actually issued or repurchased during a period. The difference between the weighted average number of common units outstanding used for basic and diluted net income per unit calculations on our consolidated statements of income is primarily the dilutive effect of phantom unit awards granted pursuant to our long-term incentive plan, which have not yet vested in periods where contingent performance metrics have been met.

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Derivative Financial Instruments

3 Months Ended

Mar. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

Commodity Derivatives

Our open futures contracts at March 31, 2022 were as follows:

Type of Contract/Accounting Methodology	Product Represented by the Contract and Associated Barrels	Maturity Dates
Commodity derivatives contract - Economic hedges	5.3 million barrels of refined products and crude oil	Between April 2022 and February 2023
Commodity derivatives contract - Economic hedges	0.7 million barrels of gas liquids	Between April 2022 and February 2023

Commodity Derivatives Contracts and Deposits Offsets

At December 31, 2021 and March 31, 2022, we had made margin deposits of $46.3 million and $130.8 million, respectively, for our commodity derivatives contracts with our counterparties, which were recorded as current assets under commodity derivatives deposits on our consolidated balance sheets. We have the right to offset the combined fair values of our open derivatives contracts against our margin deposits under a master netting arrangement for each counterparty; however, we have elected to present the combined fair values of our open derivatives contracts separately from the related margin deposits on our consolidated balance sheets. Additionally, we have the right to offset the fair values of our derivatives contracts together for each counterparty, which we have elected to do, and we report the combined net balances on our consolidated balance sheets. A schedule of the

derivative amounts we have offset and the deposit amounts we could offset under master netting arrangements are provided below as of December 31, 2021 and March 31, 2022 (in millions):

Description	Gross Amounts of Recognized Liabilities		Gross Amounts of Assets Offset in the Consolidated Balance Sheets		Net Amounts of Liabilities Presented in the Consolidated Balance Sheets		Margin Deposit Amounts Not Offset in the Consolidated Balance Sheets		Net Asset Amount(1)
As of December 31, 2021	$	(22.3)	$	5.1	$	(17.2)	$	46.3	$	29.1
As of March 31, 2022	$	(59.2)	$	11.8	$	(47.4)	$	130.8	$	83.4

(1) Amount represents the maximum loss we would incur if all of our counterparties failed to perform on their derivative contracts.

Basis Derivative Agreement

During 2019, we entered into a basis derivative agreement with a joint venture co-owner’s affiliate, and, contemporaneously, that affiliate entered into an intrastate transportation services agreement with the joint venture. Settlements under the basis derivative agreement are determined based on the basis differential of crude oil prices at different market locations and a notional volume of 30,000 barrels per day. As a result, we account for this agreement as a derivative and recognize the changes in fair value based on forward price curves for crude oil in West Texas and the Houston Gulf Coast in other operating income (expense) in our consolidated statements of income. The liability for this agreement at December 31, 2021 was $1.5 million.

Impact of Derivatives on Our Financial Statements

Comprehensive Income

The changes in derivative activity included in AOCL for the three months ended March 31, 2021 and 2022 were as follows (in millions):

	Three Months Ended
	March 31,
Derivative Losses Included in AOCL	2021		2022
Beginning balance	$	(55.0)	$	(51.5)
Reclassification of net loss on cash flow hedges to income	0.9		0.9
Ending balance	$	(54.1)	$	(50.6)

The following is a summary of the effect on our consolidated statements of income for the three months ended March 31, 2021 and 2022 of derivatives that were designated as cash flow hedges (in millions):

	Interest Rate Contracts
	Location of Loss Reclassified from AOCL into  Income	Amount of Loss Reclassified from AOCL into Income
Three Months Ended March 31, 2021	Interest expense	$	(0.9)
Three Months Ended March 31, 2022	Interest expense	$	(0.9)

As of March 31, 2022, the net loss estimated to be classified to interest expense over the next twelve months from AOCL is approximately $3.5 million. This amount relates to the amortization of losses on interest rate contracts over the life of the related debt instruments.

The following table provides a summary of the effect on our consolidated statements of income for the three months ended March 31, 2021 and 2022 of derivatives that were not designated as hedging instruments (in millions):

		Amount of Gain (Loss) Recognized on Derivatives
		Three Months Ended
	Location of Gain (Loss) Recognized on Derivatives	March 31,
Derivative Instrument		2021		2022
Commodity derivatives contracts	Product sales revenue	$	(52.7)	$	(116.4)
Commodity derivatives contracts	Cost of product sales	$	1.4	$	8.6
Basis derivative agreement	Other operating income (expense)	$	(0.7)	$	(2.1)
	Total	$	(52.0)	$	(109.9)

The impact of the derivatives in the above table was reflected as cash from operations on our consolidated statements of cash flows.

Balance Sheets

The following tables provide a summary of the fair value of derivatives, which are presented on a net basis in our consolidated balance sheets, that were not designated as hedging instruments as of December 31, 2021 and March 31, 2022 (in millions):

	December 31, 2021
	Asset Derivatives			Liability Derivatives
Derivative Instrument	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Commodity derivatives contracts	Commodity derivatives contracts, net	$	5.1	Commodity derivatives contracts, net	$	22.3
Basis derivative agreement	Other current assets	—		Other current liabilities	1.5
	Total	$	5.1	Total	$	23.8
	March 31, 2022
	Asset Derivatives			Liability Derivatives
Derivative Instrument	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Commodity derivatives contracts	Commodity derivatives contracts, net	$	11.8	Commodity derivatives contracts, net	$	59.2

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Fair Value

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value

Fair Value

Fair Value Methods and Assumptions - Financial Assets and Liabilities

We used the following methods and assumptions in estimating fair value of our financial assets and liabilities:

•Commodity derivatives contracts. These include exchange-traded and over-the-counter derivative contracts related to petroleum products. These contracts are carried at fair value on our consolidated balance sheets. The exchange-traded contracts are valued based on quoted prices in active markets, while the over-the-counter contracts are valued based on observable market data inputs including published commodity pricing data. See Note 11 – Derivative Financial Instruments for further disclosures regarding these contracts.

•Basis derivative agreement. During 2019, we entered into a basis derivative agreement with a joint venture co-owner’s affiliate, and, contemporaneously, that affiliate entered into an intrastate transportation services agreement with the joint venture. Settlements under the basis derivative agreement are determined based on the basis differential of crude oil prices at different market locations and a notional volume of 30,000 barrels per day (see Note 11 - Derivative Financial Instruments for further disclosures regarding this agreement). The fair value of this derivative was calculated based on observable market data inputs, including published commodity pricing data and market interest rates. The key inputs in the fair value calculation include the forward price curves for crude oil, the implied forward correlation in crude oil prices between West Texas and the Houston Gulf Coast, and the implied forward volatility for crude oil futures contracts.

•Long-term receivables. These include payments receivable under a sales-type leasing arrangement and payments due to us for environmental liability insurance. These receivables were recorded at fair value on our consolidated balance sheets, using then-current market rates to estimate the present value of future cash flows.

•Contractual obligations. At March 31, 2022, these primarily included a long-term contractual obligation we entered into in connection with the 2020 sale of three marine terminals to a subsidiary of Buckeye. This obligation requires us to perform certain environmental remediation work on Buckeye’s behalf at the New Haven, Connecticut terminal. This contractual obligation was recorded at fair value on our consolidated balance sheets upon initial recognition and was calculated using our best estimate of potential outcome scenarios to determine our liability for the remediation costs required in this agreement.

•Debt. The fair value of our publicly traded notes was based on the prices of those notes at December 31, 2021 and March 31, 2022; however, where recent observable market trades were not available, prices were determined using adjustments to the last traded value for that debt issuance or by adjustments to the prices of similar debt instruments of peer entities that are actively traded. The carrying amount of borrowings, if any, under our revolving credit facility and our commercial paper program approximates fair value due to the frequent repricing of these obligations.

Fair Value Measurements - Financial Assets and Liabilities

The following tables summarize the carrying amounts, fair values and fair value measurements recorded or disclosed as of December 31, 2021 and March 31, 2022 based on the three levels established by ASC 820, Fair Value Measurements and Disclosures (in millions):

Assets (Liabilities)					Fair Value Measurements as of December 31, 2021 using:
	Carrying Amount		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Commodity derivatives contracts	$	(17.2)	$	(17.2)	$	(18.6)	$	1.4	$	—
Basis derivative agreement	$	(1.5)	$	(1.5)	$	—	$	(1.5)
Long-term receivables	$	10.1	$	10.1	$	—	$	—	$	10.1
Contractual obligations	$	(9.8)	$	(9.8)	$	—	$	—	$	(9.8)
Debt	$	(5,088.8)	$	(5,711.5)	$	—	$	(5,711.5)	$	—

Assets (Liabilities)					Fair Value Measurements as of March 31, 2022 using:
	Carrying Amount		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Commodity derivatives contracts	$	(47.4)	$	(47.4)	$	(50.5)	$	3.1	$	—
Long-term receivables	$	9.8	$	9.8	$	—	$	—	$	9.8
Contractual obligations	$	(9.6)	$	(9.6)	$	—	$	—	$	(9.6)
Debt	$	(5,317.2)	$	(5,409.5)	$	—	$	(5,409.5)	$	—

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Corpus Christi Terminal Proceeding. On April 11, 2022, the State of Texas, through its Attorney General on behalf of the Texas Commission on Environmental Quality (“TCEQ”), brought an action for alleged violations of the Texas Clean Air Act in connection with a December 2020 fire at our Corpus Christi, Texas terminal. The TCEQ is seeking statutory civil penalties and statutory attorney’s fees over $0.3 million but not more than $1.0 million. While the outcome cannot be predicted with certainty, we believe the ultimate resolution of this matter will not have a material adverse effect on our business.

Hurricane Harvey Enforcement Proceeding. In July 2018, we received a Notice of Enforcement letter from the TCEQ alleging two air emission violations at our Galena Park, Texas terminal that occurred during Hurricane Harvey in third quarter 2017. The penalties associated with these alleged violations are expected to be approximately $0.4 million. While the outcome cannot be predicted with certainty, we believe the ultimate resolution of this matter will not have a material adverse effect on our business.

Butane Blending Patent Infringement Proceeding. In October 2017, Sunoco Partners Marketing & Terminals L.P. (“Sunoco”) brought an action for patent infringement in the U.S. District Court for the District of Delaware alleging Magellan Midstream Partners, L.P. (“Magellan”) and Powder Springs Logistics, LLC (“Powder Springs”) were infringing patents relating to butane blending at the Powder Springs facility located in Powder Springs, Georgia. Sunoco subsequently submitted pleadings alleging that Magellan was also infringing various patents related to butane blending at eight Magellan facilities, in addition to Powder Springs. Sunoco sought monetary damages, attorneys’ fees and a permanent injunction enjoining Powder Springs from infringing the subject patents. A jury trial concluded on December 6, 2021, at which the jury found Magellan willfully infringed the three patents in suit and awarded damages of approximately $9.4 million against Magellan relating to the eight Magellan facilities at issue. The jury further found that Powder Springs willfully infringed the one patent at issue relating to the Powder Springs facility and awarded approximately $2.8 million against Magellan and Powder Springs relating to that facility. Sunoco requested that the court enhance the damages award based upon the jury’s finding of willfulness, and that the court award additional damages and pre- and post-judgment interest. Magellan and Powder Springs have filed post-trial pleadings opposing Sunoco’s request for enhanced damages and challenging the findings of liability and willfulness. The final determination of the trial court is subject to potential future appeals by either or both parties to the litigation. The amounts we have accrued in relation to the claims are immaterial, and although it is not possible to predict the ultimate outcome, we believe the final resolution of this matter will not have a material adverse effect on our business.

Environmental Liabilities

Liabilities recognized for estimated environmental costs were $9.8 million and $9.7 million at December 31, 2021 and March 31, 2022, respectively. We have classified environmental liabilities as current or noncurrent based on management’s estimates regarding the timing of actual payments. Environmental expenses recognized as a result of changes in our environmental liabilities are included in operating expenses on our consolidated statements of income. Environmental expenses were $1.1 million and $0.9 million for the three months ended March 31, 2021 and 2022, respectively.

Other

In first quarter 2020, we entered into a long-term contractual obligation in connection with the sale of three marine terminals to Buckeye. This obligation requires us to perform certain environmental remediation work on Buckeye’s behalf at the New Haven, Connecticut terminal. At December 31, 2021, our balance sheet included a current liability of $0.5 million and a noncurrent liability of $8.9 million, and as of March 31, 2022, our balance sheet included a current liability of $0.3 million and a noncurrent liability of $8.9 million, reflecting the fair values of these obligations.

We have entered into an agreement to guarantee our 50% pro rata share, up to $25.0 million, of contractual obligations under the Powder Springs’ credit facility. As of March 31, 2022, our consolidated balance sheets reflected a $0.4 million other current liability and a corresponding increase in our investment in non-controlled entities on our consolidated balance sheets to reflect the fair value of this guarantee.

We and the non-controlled entities in which we own an interest are a party to various other claims, legal actions and complaints. While the results cannot be predicted with certainty, management believes the ultimate resolution of these claims, legal actions and complaints after consideration of amounts accrued, insurance coverage or other indemnification arrangements will not have a material adverse effect on our business.

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Related Party Transactions	3 Months Ended
	Mar. 31, 2022
Related Party Transactions [Abstract]
Related Party Transactions	Related Party TransactionsStacy Methvin is an independent member of our board and also serves as a director of one of our customers. We received tariff, terminalling and other ancillary revenue from this customer of $11.1 million and $15.1 million for the three months ended March 31, 2021 and 2022, respectively. We recorded receivables of $5.4 million and $5.1 million from this customer at December 31, 2021 and March 31, 2022, respectively. See Note 5 – Investments in Non-Controlled Entities and Note 8 – Leases for details of transactions with our joint ventures.

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Partners' Capital and Distributions

3 Months Ended

Mar. 31, 2022

Partners' Capital [Abstract]

Partners' Capital and Distributions

Partners’ Capital and Distributions

Partners’ Capital

Our board authorized the repurchase of up to $1.5 billion of our common units through 2024. The timing, price and actual number of common units repurchased will depend on a number of factors including our expected expansion capital spending needs, excess cash available, balance sheet metrics, legal and regulatory requirements, market conditions and the trading price of our common units. The repurchase program does not obligate us to acquire any particular amount of common units and may be suspended or discontinued at any time.

The following table details the changes in the number of our common units outstanding from December 31, 2021 through March 31, 2022:

Common units outstanding on December 31, 2021	212,387,990
Units repurchased during 2022	(1,042,035)
January 2022—Settlement of employee LTIP awards	200,949
During 2022—Other(1)	14,460
Common units outstanding on March 31, 2022	211,561,364

(1) Common units issued to settle the equity-based retainers paid to certain independent directors of our board.

Distributions

Distributions we paid during 2021 and 2022 were as follows (in millions, except per unit amounts):

Payment Date	Per Unit  Distribution Amount			Total Distribution
2/12/2021		$	1.0275		$	229.4
5/14/2021		1.0275			229.0
8/13/2021		1.0275			226.6
11/12/2021		1.0375			221.4
Total		$	4.1200		$	906.4
2/14/2022		$	1.0375		$	220.6
5/13/2022(a)		1.0375			219.5
Total		$	2.0750		$	440.1

(a) Our board declared this distribution in April 2022 to be paid on May 13, 2022 to unitholders of record at the close of business on May 2, 2022.

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Subsequent Events

3 Months Ended

Mar. 31, 2022

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

Recognizable events

No recognizable events occurred subsequent to March 31, 2022.

Non-recognizable events

On April 21, 2022, Robert G. Croyle notified the board of his decision to retire effective April 30, 2022 after 13 years of service. Following Mr. Croyle’s retirement, Sivasankaran Somasundaram was elected as an independent board member beginning May 1, 2022.

Distribution. In April 2022, our board declared a quarterly distribution of $1.0375 per unit for the period of January 1, 2022 through March 31, 2022. This quarterly distribution will be paid on May 13, 2022 to unitholders of record on May 2, 2022.

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Organization, Description of Business And Basis Of Presentation (Policies)

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

In the opinion of management, our accompanying consolidated financial statements which are unaudited, except for the consolidated balance sheet as of December 31, 2021, which is derived from our audited financial statements, include all normal and recurring adjustments necessary to present fairly our financial position as of March 31, 2022, the results of operations for the three months ended March 31, 2021 and 2022 and cash flows for the three months ended March 31, 2021 and 2022. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected for the full year ending December 31, 2022 for several reasons. Profits from our gas liquids blending activities are realized largely during the first and fourth quarters of each year. Additionally, gasoline demand, which drives transportation volumes and revenues on our refined products pipeline system, generally trends higher during the summer driving months. Further, the volatility of commodity prices impacts the profits from our commodity activities and the volume of petroleum products we transport on our pipelines. 

Pursuant to the rules and regulations of the Securities and Exchange Commission, the financial statements in

this report have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2021.

Discontinued Operations

In June 2021, we entered into an agreement to sell our independent terminals network comprised of 26 refined petroleum products terminals with approximately six million barrels of storage located primarily in the southeastern U.S. to Buckeye Partners, L.P. (“Buckeye”). The sale is expected to close upon the receipt of required regulatory approval. The related results of operations, financial position and cash flows have been classified as discontinued operations for all periods presented (see Note 2 – Discontinued Operations and Assets Held for Sale for additional details). Unless indicated otherwise, the information in the Notes to Consolidated Financial Statements relates to continuing operations.

Use of Estimates

Use of Estimates

The preparation of our consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities that exist at the date of our consolidated financial statements, as well as their impact on the reported amounts of revenue and expense during the reporting periods. Actual results could differ from those estimates.

New Accounting Pronouncements

New Accounting Pronouncements

We evaluate new Accounting Standards Codifications (“ASC”) and updates issued by the Financial Accounting Standards Board on an ongoing basis. There are no new accounting pronouncements that we anticipate will have a material impact on our financial statements.

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Discontinued Operations and Assets Held for Sale (Tables)

3 Months Ended

Mar. 31, 2022

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations

Summarized Results of Discontinued Operations

The following table provides the summarized results that have been reclassified from continuing operations to discontinued operations on the consolidated statements of income (in millions):

	Three Months Ended March 31,
	2021		2022
Transportation and terminals revenue	$	13.1	$	12.1
Product sales revenue	16.9		6.3
Total revenue	30.0		18.4
Costs and expenses:
Operating	3.4		3.8
Cost of product sales	13.9		10.5
Depreciation, amortization and impairment	3.5		—
General and administrative	0.6		0.6
Total costs and expenses	21.4		14.9
Income from discontinued operations	$	8.6	$	3.5

Summarized Assets and Liabilities of Discontinued Operations

The following table provides the summarized assets and liabilities classified as held for sale on the consolidated balance sheets (in millions):

	December 31, 2021		March 31, 2022
Assets:
Trade accounts receivable	$	6.3	$	5.9
Inventory	17.0		20.1
Net property, plant and equipment	272.0		274.0
Goodwill	2.7		2.7
Other assets	1.5		1.3
Total assets classified as held for sale	$	299.5	$	304.0
Liabilities:
Accounts payable	$	3.7	$	4.7
Accrued product liabilities	8.4		13.4
Other liabilities	3.7		5.4
Total liabilities classified as held for sale	$	15.8	$	23.5

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Segment Disclosures (Tables)

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Schedule of Business Segment Reporting Information

A reconciliation of operating margin to operating profit, which is its nearest comparable GAAP financial measure, is included in the tables below. Operating profit includes depreciation, amortization and impairment expense and general and administrative (“G&A”) expense that management does not consider when evaluating the core profitability of our separate operating segments.

	Three Months Ended March 31, 2021
	(in millions)
	Refined Products		Crude Oil		Intersegment Eliminations		Total
Transportation and terminals revenue	$	297.6	$	116.2	$	(1.8)	$	412.0
Product sales revenue	184.5		29.2		—		213.7
Affiliate management fee revenue	1.6		3.8		—		5.4
Total revenue	483.7		149.2		(1.8)		631.1
Operating expense	91.5		39.2		(3.4)		127.3
Cost of product sales	140.8		30.1		—		170.9
Other operating (income) expense	(0.3)		0.7		—		0.4
Earnings of non-controlled entities	(9.2)		(29.9)		—		(39.1)
Operating margin	260.9		109.1		1.6		371.6
Depreciation, amortization and impairment expense	36.1		16.9		1.6		54.6
G&A expense	33.0		13.0		—		46.0
Operating profit	$	191.8	$	79.2	$	—	$	271.0

	Three Months Ended March 31, 2022
	(in millions)
	Refined Products		Crude Oil		Intersegment Eliminations		Total
Transportation and terminals revenue	$	309.5	$	114.7	$	(1.3)	$	422.9
Product sales revenue	241.6		4.5		—		246.1
Affiliate management fee revenue	1.8		3.9		—		5.7
Total revenue	552.9		123.1		(1.3)		674.7
Operating expense	88.2		38.8		(2.8)		124.2
Cost of product sales	233.1		10.3		—		243.4
Other operating (income) expense	(0.1)		2.1		—		2.0
Earnings of non-controlled entities	(3.7)		(31.7)		—		(35.4)
Operating margin	235.4		103.6		1.5		340.5
Depreciation, amortization and impairment expense	39.6		16.6		1.5		57.7
G&A expense	45.7		17.1		—		62.8
Operating profit	$	150.1	$	69.9	$	—	$	220.0

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Revenue (Tables)

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue from External Customers by Products and Services

The following tables provide details of our revenue disaggregated by key activities that comprise our performance obligations by operating segment (in millions):

	Three Months Ended March 31, 2021
	Refined Products		Crude Oil		Intersegment Eliminations		Total
Transportation	$	193.4	$	55.0	$	—	$	248.4
Terminalling	22.6		6.1		—		28.7
Storage	49.0		29.3		(1.8)		76.5
Ancillary services	28.5		8.0		—		36.5
Lease revenue	4.1		17.8		—		21.9
Transportation and terminals revenue	297.6		116.2		(1.8)		412.0
Product sales revenue	184.5		29.2		—		213.7
Affiliate management fee revenue	1.6		3.8		—		5.4
Total revenue	483.7		149.2		(1.8)		631.1
Revenue not under the guidance of ASC 606, Revenue from Contracts with Customers:
Lease revenue	(4.1)		(17.8)		—		(21.9)
(Gains) losses from futures contracts included in product sales revenue	47.3		5.4		—		52.7
Affiliate management fee revenue	(1.6)		(3.8)		—		(5.4)
Total revenue from contracts with customers under ASC 606	$	525.3	$	133.0	$	(1.8)	$	656.5

	Three Months Ended March 31, 2022
	Refined Products		Crude Oil		Intersegment Eliminations		Total
Transportation	$	213.3	$	55.0	$	—	$	268.3
Terminalling	23.3		6.3		—		29.6
Storage	39.5		27.0		(1.3)		65.2
Ancillary services	27.6		7.9		—		35.5
Lease revenue	5.8		18.5		—		24.3
Transportation and terminals revenue	309.5		114.7		(1.3)		422.9
Product sales revenue	241.6		4.5		—		246.1
Affiliate management fee revenue	1.8		3.9		—		5.7
Total revenue	552.9		123.1		(1.3)		674.7
Revenue not under the guidance of ASC 606, Revenue from Contracts with Customers:
Lease revenue	(5.8)		(18.5)		—		(24.3)
(Gains) losses from futures contracts included in product sales revenue	108.2		8.2		—		116.4
Affiliate management fee revenue	(1.8)		(3.9)		—		(5.7)
Total revenue from contracts with customers under ASC 606	$	653.5	$	108.9	$	(1.3)	$	761.1

Contract with Customer, Asset and Liability

The following table summarizes our accounts receivable, contract assets and contract liabilities resulting from contracts with customers (in millions):

	December 31, 2021		March 31, 2022
Accounts receivable from contracts with customers	$	134.8	$	125.1
Contract assets	$	12.5	$	13.8
Contract liabilities	$	100.1	$	112.4

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction

The following table provides the aggregate amount of the transaction price allocated to our unfulfilled performance obligations (“UPOs”) as of March 31, 2022 by operating segment, including the range of years remaining on our contracts with customers and an estimate of revenues expected to be recognized over the next 12 months (dollars in millions):

	Refined Products		Crude Oil		Total
Balances at March 31, 2022	$	1,800.9	$	1,023.5	$	2,824.4
Remaining terms	1 - 17 years		1 - 10 years
Estimated revenues from UPOs to be recognized in the next 12 months	$	370.4	$	249.5	$	619.9

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Investments in Non-Controlled Entities (Tables)

3 Months Ended

Mar. 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments

Our equity investments in non-controlled entities at March 31, 2022 were comprised of:

Entity	Ownership Interest
BridgeTex Pipeline Company, LLC (“BridgeTex”)	30%
Double Eagle Pipeline LLC (“Double Eagle”)	50%
HoustonLink Pipeline Company, LLC (“HoustonLink”)	50%
MVP Terminalling, LLC (“MVP”)	25%
Powder Springs Logistics, LLC (“Powder Springs”)	50%
Saddlehorn Pipeline Company, LLC (“Saddlehorn”)	30%
Seabrook Logistics, LLC (“Seabrook”)	50%
Texas Frontera, LLC (“Texas Frontera”)	50%

.

We recorded the following revenue and expense transactions from certain of these non-controlled entities in our consolidated statements of income (in millions):

	Three Months Ended March 31,
	2021		2022
Transportation and terminals revenue:
BridgeTex, pipeline capacity and storage	$	10.7	$	11.0
Double Eagle, throughput revenue	$	1.0	$	0.7
Saddlehorn, storage revenue	$	0.6	$	0.6
Operating expense:
Seabrook, storage lease and ancillary services	$	5.3	$	4.2

Our consolidated balance sheets reflected the following balances related to transactions with our non-controlled entities (in millions):

	December 31, 2021
	Trade Accounts Receivable		Other Accounts Receivable		Other Accounts Payable
BridgeTex	$	1.2	$	—	$	0.3
Double Eagle	$	0.2	$	—	$	—
HoustonLink	$	—	$	—	$	0.2
MVP	$	—	$	0.6	$	2.2
Saddlehorn	$	—	$	0.2	$	—
Seabrook	$	—	$	0.1	$	3.2

	March 31, 2022
	Trade Accounts Receivable		Other Accounts Receivable		Other Accounts Payable
BridgeTex	$	1.9	$	—	$	—
Double Eagle	$	0.2	$	—	$	—
HoustonLink	$	—	$	—	$	0.2
MVP	$	—	$	0.9	$	5.2
Saddlehorn	$	0.2	$	0.2	$	—
Seabrook	$	0.2	$	0.2	$	0.9

A summary of our investments in non-controlled entities (representing only our proportionate interest) follows (in millions):

Investments at December 31, 2021	$	980.8
Additional investment	0.8
Earnings of non-controlled entities:
Proportionate share of earnings	35.8
Amortization of excess investment and capitalized interest	(0.4)
Earnings of non-controlled entities	35.4
Less:
Distributions from operations of non-controlled entities	38.4
Investments at March 31, 2022	$	978.6

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Inventory (Tables)

3 Months Ended

Mar. 31, 2022

Inventory Disclosure [Abstract]

Schedule of Inventory

Inventory at December 31, 2021 and March 31, 2022 was as follows (in millions): 

	December 31, 2021		March 31, 2022
Refined products	$	138.0	$	181.6
Transmix	72.4		64.5
LPGs	42.0		27.9
Crude oil	25.4		29.7
Additives	3.3		4.5
Total inventory	$	281.1	$	308.2

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Debt (Tables)

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Consolidated Debt

Long-term debt at December 31, 2021 and March 31, 2022 was as follows (in millions):

	December 31, 2021		March 31, 2022
Commercial paper	$	108.0	$	336.0
3.20% Notes due 2025	250.0		250.0
5.00% Notes due 2026	650.0		650.0
3.25% Notes due 2030	500.0		500.0
6.40% Notes due 2037	250.0		250.0
4.20% Notes due 2042	250.0		250.0
5.15% Notes due 2043	550.0		550.0
4.20% Notes due 2045	250.0		250.0
4.25% Notes due 2046	500.0		500.0
4.20% Notes due 2047	500.0		500.0
4.85% Notes due 2049	500.0		500.0
3.95% Notes due 2050	800.0		800.0
Face value of long-term debt	5,108.0		5,336.0
Unamortized debt issuance costs(1)	(37.8)		(37.2)
Net unamortized debt premium(1)	18.6		18.4
Long-term debt, net	$	5,088.8	$	5,317.2

(1)        Debt issuance costs and note discounts and premiums are being amortized or accreted to the applicable notes over the respective lives of those notes.

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Leases (Tables)

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Operating Leases

The following tables provide information about our third-party and Seabrook operating leases (in millions):

	Three Months Ended March 31, 2021						Three Months Ended March 31, 2022
	Third-Party Leases		Seabrook Lease		All Leases		Third-Party Leases		Seabrook Lease		All Leases
Total lease expense	$	7.0	$	5.3	$	12.3	$	6.2	$	4.2	$	10.4

	December 31, 2021						March 31, 2022
	Third-Party Leases		Seabrook Lease		All Leases		Third-Party Leases		Seabrook Lease		All Leases
Current lease liability	$	17.8	$	8.0	$	25.8	$	21.0	$	9.7	$	30.7
Long-term lease liability	$	102.8	$	44.5	$	147.3	$	97.7	$	40.8	$	138.5
Right-of-use asset	$	121.7	$	52.5	$	174.2	$	117.8	$	50.5	$	168.3

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Employee Benefit Plans (Tables)

3 Months Ended

Mar. 31, 2022

Retirement Benefits [Abstract]

Schedule of Consolidated Net Periodic Benefit Costs

Net periodic benefit expense for the three months ended March 31, 2021 and 2022 were as follows (in millions):

	Three Months Ended				Three Months Ended
	March 31, 2021				March 31, 2022
	Pension Benefits		Other  Postretirement Benefits		Pension Benefits		Other  Postretirement Benefits
Components of net periodic benefit costs:
Service cost	$	7.4	$	0.1	$	7.1	$	0.1
Interest cost	2.4		0.1		2.7		0.1
Expected return on plan assets	(3.1)		—		(3.4)		—
Amortization of actuarial loss	1.5		0.1		1.1		0.1
Net periodic benefit cost	$	8.2	$	0.3	$	7.5	$	0.3

Schedule of Amounts Recognized in Other Comprehensive Loss

The changes in accumulated other comprehensive loss (“AOCL”) related to employee benefit plan assets and benefit obligations for the three months ended March 31, 2021 and 2022 were as follows (in millions):

	Three Months Ended				Three Months Ended
	March 31, 2021				March 31, 2022
Gains (Losses) Included in AOCL	Pension Benefits		Other Postretirement Benefits		Pension Benefits		Other Postretirement Benefits
Beginning balance	$	(117.8)	$	(10.4)	$	(92.8)	$	(10.7)
Recognition of actuarial loss amortization in income	1.5		0.1		1.1		0.1
Ending balance	$	(116.3)	$	(10.3)	$	(91.7)	$	(10.6)

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Long-Term Incentive Plan (Tables)

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

Equity-Based Incentive Compensation Expense

Equity-based incentive compensation expense for the three months ended March 31, 2021 and 2022, primarily recorded as G&A expense on our consolidated statements of income, was as follows (in millions):

	Three Months Ended March 31,
	2021		2022
Performance-based awards	$	2.2	$	8.0
Time-based awards	2.5		6.4
Total	$	4.7	$	14.4

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Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule Of NYMEX Contracts And Butane Price Swap Purchase Agreements

Our open futures contracts at March 31, 2022 were as follows:

Type of Contract/Accounting Methodology	Product Represented by the Contract and Associated Barrels	Maturity Dates
Commodity derivatives contract - Economic hedges	5.3 million barrels of refined products and crude oil	Between April 2022 and February 2023
Commodity derivatives contract - Economic hedges	0.7 million barrels of gas liquids	Between April 2022 and February 2023

Derivatives and Offset Amounts

A schedule of the

derivative amounts we have offset and the deposit amounts we could offset under master netting arrangements are provided below as of December 31, 2021 and March 31, 2022 (in millions):

Description	Gross Amounts of Recognized Liabilities		Gross Amounts of Assets Offset in the Consolidated Balance Sheets		Net Amounts of Liabilities Presented in the Consolidated Balance Sheets		Margin Deposit Amounts Not Offset in the Consolidated Balance Sheets		Net Asset Amount(1)
As of December 31, 2021	$	(22.3)	$	5.1	$	(17.2)	$	46.3	$	29.1
As of March 31, 2022	$	(59.2)	$	11.8	$	(47.4)	$	130.8	$	83.4

(1) Amount represents the maximum loss we would incur if all of our counterparties failed to perform on their derivative contracts.

Derivatives and Hedging-Cash Flow Hedges

The changes in derivative activity included in AOCL for the three months ended March 31, 2021 and 2022 were as follows (in millions):

	Three Months Ended
	March 31,
Derivative Losses Included in AOCL	2021		2022
Beginning balance	$	(55.0)	$	(51.5)
Reclassification of net loss on cash flow hedges to income	0.9		0.9
Ending balance	$	(54.1)	$	(50.6)

The following is a summary of the effect on our consolidated statements of income for the three months ended March 31, 2021 and 2022 of derivatives that were designated as cash flow hedges (in millions):

	Interest Rate Contracts
	Location of Loss Reclassified from AOCL into  Income	Amount of Loss Reclassified from AOCL into Income
Three Months Ended March 31, 2021	Interest expense	$	(0.9)
Three Months Ended March 31, 2022	Interest expense	$	(0.9)

Derivatives and Hedging-Overall-Subsequent Measurement

The following table provides a summary of the effect on our consolidated statements of income for the three months ended March 31, 2021 and 2022 of derivatives that were not designated as hedging instruments (in millions):

		Amount of Gain (Loss) Recognized on Derivatives
		Three Months Ended
	Location of Gain (Loss) Recognized on Derivatives	March 31,
Derivative Instrument		2021		2022
Commodity derivatives contracts	Product sales revenue	$	(52.7)	$	(116.4)
Commodity derivatives contracts	Cost of product sales	$	1.4	$	8.6
Basis derivative agreement	Other operating income (expense)	$	(0.7)	$	(2.1)
	Total	$	(52.0)	$	(109.9)

Derivatives and Hedging-Designated

The following tables provide a summary of the fair value of derivatives, which are presented on a net basis in our consolidated balance sheets, that were not designated as hedging instruments as of December 31, 2021 and March 31, 2022 (in millions):

	December 31, 2021
	Asset Derivatives			Liability Derivatives
Derivative Instrument	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Commodity derivatives contracts	Commodity derivatives contracts, net	$	5.1	Commodity derivatives contracts, net	$	22.3
Basis derivative agreement	Other current assets	—		Other current liabilities	1.5
	Total	$	5.1	Total	$	23.8
	March 31, 2022
	Asset Derivatives			Liability Derivatives
Derivative Instrument	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Commodity derivatives contracts	Commodity derivatives contracts, net	$	11.8	Commodity derivatives contracts, net	$	59.2

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Fair Value (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables summarize the carrying amounts, fair values and fair value measurements recorded or disclosed as of December 31, 2021 and March 31, 2022 based on the three levels established by ASC 820, Fair Value Measurements and Disclosures (in millions):

Assets (Liabilities)					Fair Value Measurements as of December 31, 2021 using:
	Carrying Amount		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Commodity derivatives contracts	$	(17.2)	$	(17.2)	$	(18.6)	$	1.4	$	—
Basis derivative agreement	$	(1.5)	$	(1.5)	$	—	$	(1.5)
Long-term receivables	$	10.1	$	10.1	$	—	$	—	$	10.1
Contractual obligations	$	(9.8)	$	(9.8)	$	—	$	—	$	(9.8)
Debt	$	(5,088.8)	$	(5,711.5)	$	—	$	(5,711.5)	$	—

Assets (Liabilities)					Fair Value Measurements as of March 31, 2022 using:
	Carrying Amount		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Commodity derivatives contracts	$	(47.4)	$	(47.4)	$	(50.5)	$	3.1	$	—
Long-term receivables	$	9.8	$	9.8	$	—	$	—	$	9.8
Contractual obligations	$	(9.6)	$	(9.6)	$	—	$	—	$	(9.6)
Debt	$	(5,317.2)	$	(5,409.5)	$	—	$	(5,409.5)	$	—

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Partners' Capital and Distributions (Tables)

3 Months Ended

Mar. 31, 2022

Partners' Capital [Abstract]

Schedule of Capital Units

The following table details the changes in the number of our common units outstanding from December 31, 2021 through March 31, 2022:

Common units outstanding on December 31, 2021	212,387,990
Units repurchased during 2022	(1,042,035)
January 2022—Settlement of employee LTIP awards	200,949
During 2022—Other(1)	14,460
Common units outstanding on March 31, 2022	211,561,364

(1) Common units issued to settle the equity-based retainers paid to certain independent directors of our board.

Schedule of Distributions

Distributions we paid during 2021 and 2022 were as follows (in millions, except per unit amounts):

Payment Date	Per Unit  Distribution Amount			Total Distribution
2/12/2021		$	1.0275		$	229.4
5/14/2021		1.0275			229.0
8/13/2021		1.0275			226.6
11/12/2021		1.0375			221.4
Total		$	4.1200		$	906.4
2/14/2022		$	1.0375		$	220.6
5/13/2022(a)		1.0375			219.5
Total		$	2.0750		$	440.1

(a) Our board declared this distribution in April 2022 to be paid on May 13, 2022 to unitholders of record at the close of business on May 2, 2022.

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Organization, Description of Business and Basis of Presentation (Narrative) (Details) bbl in Millions	Mar. 31, 2022 bbl terminal mi
Independent Terminals Network | Discontinued Operations, Held-for-sale
Organization and Description of Business [Line Items]
Contracted storage	6
Number of independent terminals | terminal	26
Refined Products
Organization and Description of Business [Line Items]
Pipeline length | mi	9,800
Number of pipeline terminals | terminal	54
Number of marine terminals | terminal	2
Number of marine terminals, owned through joint venture | terminal	1
Crude Oil
Organization and Description of Business [Line Items]
Pipeline length | mi	2,200
Storage capacity	39
Contracted storage	29
Pipeline length - wholly owned | mi	1,000
Storage capacity - wholly owned	31
Contracted storage - wholly owned	25

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Discontinued Operations and Assets Held for Sale - Disposal Groups, Including Discontinued Operations (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total revenue	$ 18.4	$ 30.0
Costs and expenses:
Operating	3.8	3.4
Cost of product sales	10.5	13.9
Depreciation, amortization and impairment	0.0	3.5
General and administrative	0.6	0.6
Total costs and expenses	14.9	21.4
Income from discontinued operations	3.5	8.6
Assets:
Trade accounts receivable	5.9		$ 6.3
Inventory	20.1		17.0
Net property, plant and equipment	274.0		272.0
Goodwill	2.7		2.7
Other assets	1.3		1.5
Total assets classified as held for sale	304.0		299.5
Liabilities:
Accounts payable	4.7		3.7
Accrued product liabilities	13.4		8.4
Other liabilities	5.4		3.7
Total liabilities classified as held for sale	23.5		$ 15.8
Transportation and terminals revenue
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total revenue	12.1	13.1
Product sales revenue
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total revenue	$ 6.3	$ 16.9

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Segment Disclosures - Schedule Of Business Segment Reporting Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting Information [Line Items]
Total revenue	$ 674.7	$ 631.1
Operating expense	124.2	127.3
Cost of product sales	243.4	170.9
Other operating (income) expense	2.0	0.4
Earnings of non-controlled entities	(35.4)	(39.1)
Operating margin	340.5	371.6
Depreciation, amortization and impairment	57.7	54.6
G&A expense	62.8	46.0
Operating profit	220.0	271.0
Operating Segments | Refined Products
Segment Reporting Information [Line Items]
Total revenue	552.9	483.7
Operating expense	88.2	91.5
Cost of product sales	233.1	140.8
Other operating (income) expense	(0.1)	(0.3)
Earnings of non-controlled entities	(3.7)	(9.2)
Operating margin	235.4	260.9
Depreciation, amortization and impairment	39.6	36.1
G&A expense	45.7	33.0
Operating profit	150.1	191.8
Operating Segments | Crude Oil
Segment Reporting Information [Line Items]
Total revenue	123.1	149.2
Operating expense	38.8	39.2
Cost of product sales	10.3	30.1
Other operating (income) expense	2.1	0.7
Earnings of non-controlled entities	(31.7)	(29.9)
Operating margin	103.6	109.1
Depreciation, amortization and impairment	16.6	16.9
G&A expense	17.1	13.0
Operating profit	69.9	79.2
Intersegment Eliminations
Segment Reporting Information [Line Items]
Total revenue	(1.3)	(1.8)
Operating expense	(2.8)	(3.4)
Cost of product sales	0.0	0.0
Other operating (income) expense	0.0	0.0
Earnings of non-controlled entities	0.0	0.0
Operating margin	1.5	1.6
Depreciation, amortization and impairment	1.5	1.6
G&A expense	0.0	0.0
Operating profit	0.0	0.0
Transportation and terminals revenue
Segment Reporting Information [Line Items]
Total revenue	422.9	412.0
Transportation and terminals revenue | Operating Segments | Refined Products
Segment Reporting Information [Line Items]
Total revenue	309.5	297.6
Transportation and terminals revenue | Operating Segments | Crude Oil
Segment Reporting Information [Line Items]
Total revenue	114.7	116.2
Transportation and terminals revenue | Intersegment Eliminations
Segment Reporting Information [Line Items]
Total revenue	(1.3)	(1.8)
Product sales revenue
Segment Reporting Information [Line Items]
Total revenue	246.1	213.7
Product sales revenue | Operating Segments | Refined Products
Segment Reporting Information [Line Items]
Total revenue	241.6	184.5
Product sales revenue | Operating Segments | Crude Oil
Segment Reporting Information [Line Items]
Total revenue	4.5	29.2
Product sales revenue | Intersegment Eliminations
Segment Reporting Information [Line Items]
Total revenue	0.0	0.0
Affiliate management fee revenue
Segment Reporting Information [Line Items]
Total revenue	5.7	5.4
Affiliate management fee revenue | Operating Segments | Refined Products
Segment Reporting Information [Line Items]
Total revenue	1.8	1.6
Affiliate management fee revenue | Operating Segments | Crude Oil
Segment Reporting Information [Line Items]
Total revenue	3.9	3.8
Affiliate management fee revenue | Intersegment Eliminations
Segment Reporting Information [Line Items]
Total revenue	$ 0.0	$ 0.0

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Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Disaggregation of Revenue [Line Items]
Total revenue	$ 674.7	$ 631.1
Lease revenue	(24.3)	(21.9)
(Gains) losses from futures contracts included in product sales revenue	116.4	52.7
Affiliate management fee revenue	(5.7)	(5.4)
Total revenue from contracts with customers under ASC 606	761.1	656.5
Transportation and terminals revenue
Disaggregation of Revenue [Line Items]
Total revenue	422.9	412.0
Product sales revenue
Disaggregation of Revenue [Line Items]
Total revenue	246.1	213.7
Affiliate management fee revenue
Disaggregation of Revenue [Line Items]
Total revenue	5.7	5.4
Operating Segments | Refined Products
Disaggregation of Revenue [Line Items]
Total revenue	552.9	483.7
Lease revenue	(5.8)	(4.1)
(Gains) losses from futures contracts included in product sales revenue	108.2	47.3
Affiliate management fee revenue	(1.8)	(1.6)
Total revenue from contracts with customers under ASC 606	653.5	525.3
Operating Segments | Crude Oil
Disaggregation of Revenue [Line Items]
Total revenue	123.1	149.2
Lease revenue	(18.5)	(17.8)
(Gains) losses from futures contracts included in product sales revenue	8.2	5.4
Affiliate management fee revenue	(3.9)	(3.8)
Total revenue from contracts with customers under ASC 606	108.9	133.0
Operating Segments | Transportation and terminals revenue | Refined Products
Disaggregation of Revenue [Line Items]
Total revenue	309.5	297.6
Operating Segments | Transportation and terminals revenue | Crude Oil
Disaggregation of Revenue [Line Items]
Total revenue	114.7	116.2
Operating Segments | Product sales revenue | Refined Products
Disaggregation of Revenue [Line Items]
Total revenue	241.6	184.5
Operating Segments | Product sales revenue | Crude Oil
Disaggregation of Revenue [Line Items]
Total revenue	4.5	29.2
Operating Segments | Affiliate management fee revenue | Refined Products
Disaggregation of Revenue [Line Items]
Total revenue	1.8	1.6
Operating Segments | Affiliate management fee revenue | Crude Oil
Disaggregation of Revenue [Line Items]
Total revenue	3.9	3.8
Intersegment Eliminations
Disaggregation of Revenue [Line Items]
Total revenue	(1.3)	(1.8)
Lease revenue	0.0	0.0
(Gains) losses from futures contracts included in product sales revenue	0.0	0.0
Affiliate management fee revenue	0.0	0.0
Total revenue from contracts with customers under ASC 606	(1.3)	(1.8)
Intersegment Eliminations | Transportation and terminals revenue
Disaggregation of Revenue [Line Items]
Total revenue	(1.3)	(1.8)
Intersegment Eliminations | Product sales revenue
Disaggregation of Revenue [Line Items]
Total revenue	0.0	0.0
Intersegment Eliminations | Affiliate management fee revenue
Disaggregation of Revenue [Line Items]
Total revenue	0.0	0.0
Transferred over Time | Transportation and terminals revenue
Disaggregation of Revenue [Line Items]
Total revenue	422.9	412.0
Transferred over Time | Transportation
Disaggregation of Revenue [Line Items]
Total revenue	268.3	248.4
Transferred over Time | Terminalling
Disaggregation of Revenue [Line Items]
Total revenue	29.6	28.7
Transferred over Time | Storage
Disaggregation of Revenue [Line Items]
Total revenue	65.2	76.5
Transferred over Time | Ancillary services
Disaggregation of Revenue [Line Items]
Total revenue	35.5	36.5
Transferred over Time | Lease revenue
Disaggregation of Revenue [Line Items]
Total revenue	24.3	21.9
Transferred over Time | Operating Segments | Transportation and terminals revenue | Refined Products
Disaggregation of Revenue [Line Items]
Total revenue	309.5	297.6
Transferred over Time | Operating Segments | Transportation and terminals revenue | Crude Oil
Disaggregation of Revenue [Line Items]
Total revenue	114.7	116.2
Transferred over Time | Operating Segments | Transportation | Refined Products
Disaggregation of Revenue [Line Items]
Total revenue	213.3	193.4
Transferred over Time | Operating Segments | Transportation | Crude Oil
Disaggregation of Revenue [Line Items]
Total revenue	55.0	55.0
Transferred over Time | Operating Segments | Terminalling | Refined Products
Disaggregation of Revenue [Line Items]
Total revenue	23.3	22.6
Transferred over Time | Operating Segments | Terminalling | Crude Oil
Disaggregation of Revenue [Line Items]
Total revenue	6.3	6.1
Transferred over Time | Operating Segments | Storage | Refined Products
Disaggregation of Revenue [Line Items]
Total revenue	39.5	49.0
Transferred over Time | Operating Segments | Storage | Crude Oil
Disaggregation of Revenue [Line Items]
Total revenue	27.0	29.3
Transferred over Time | Operating Segments | Ancillary services | Refined Products
Disaggregation of Revenue [Line Items]
Total revenue	27.6	28.5
Transferred over Time | Operating Segments | Ancillary services | Crude Oil
Disaggregation of Revenue [Line Items]
Total revenue	7.9	8.0
Transferred over Time | Operating Segments | Lease revenue | Refined Products
Disaggregation of Revenue [Line Items]
Total revenue	5.8	4.1
Transferred over Time | Operating Segments | Lease revenue | Crude Oil
Disaggregation of Revenue [Line Items]
Total revenue	18.5	17.8
Transferred over Time | Intersegment Eliminations | Transportation and terminals revenue
Disaggregation of Revenue [Line Items]
Total revenue	(1.3)	(1.8)
Transferred over Time | Intersegment Eliminations | Transportation
Disaggregation of Revenue [Line Items]
Total revenue	0.0	0.0
Transferred over Time | Intersegment Eliminations | Terminalling
Disaggregation of Revenue [Line Items]
Total revenue	0.0	0.0
Transferred over Time | Intersegment Eliminations | Storage
Disaggregation of Revenue [Line Items]
Total revenue	(1.3)	(1.8)
Transferred over Time | Intersegment Eliminations | Ancillary services
Disaggregation of Revenue [Line Items]
Total revenue	0.0	0.0
Transferred over Time | Intersegment Eliminations | Lease revenue
Disaggregation of Revenue [Line Items]
Total revenue	0.0	0.0
Transferred at Point in Time | Product sales revenue
Disaggregation of Revenue [Line Items]
Total revenue	246.1	213.7
Transferred at Point in Time | Operating Segments | Product sales revenue | Refined Products
Disaggregation of Revenue [Line Items]
Total revenue	241.6	184.5
Transferred at Point in Time | Operating Segments | Product sales revenue | Crude Oil
Disaggregation of Revenue [Line Items]
Total revenue	4.5	29.2
Transferred at Point in Time | Intersegment Eliminations | Product sales revenue
Disaggregation of Revenue [Line Items]
Total revenue	$ 0.0	$ 0.0

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Revenue - Assets and Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Accounts receivable from contracts with customers	$ 125.1	$ 134.8
Contract assets	13.8	12.5
Contract liabilities	$ 112.4	$ 100.1

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Revenue - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($)
Revenue from Contract with Customer [Abstract]
Deferred revenue, revenue recognized	$ 67.7

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Revenue - Performance Obligations in Next 12 Months (Details) $ in Millions	Mar. 31, 2022 USD ($)
Segment Reporting Information [Line Items]
Revenue, remaining performance obligation	$ 2,824.4
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01
Segment Reporting Information [Line Items]
Revenue, remaining performance obligation	$ 619.9
Remaining terms	12 months
Refined Products
Segment Reporting Information [Line Items]
Revenue, remaining performance obligation	$ 1,800.9
Refined Products | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01
Segment Reporting Information [Line Items]
Revenue, remaining performance obligation	370.4
Crude Oil
Segment Reporting Information [Line Items]
Revenue, remaining performance obligation	1,023.5
Crude Oil | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01
Segment Reporting Information [Line Items]
Revenue, remaining performance obligation	$ 249.5
Minimum | Refined Products | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01
Segment Reporting Information [Line Items]
Remaining terms	1 year
Minimum | Crude Oil | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01
Segment Reporting Information [Line Items]
Remaining terms	1 year
Maximum | Refined Products | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01
Segment Reporting Information [Line Items]
Remaining terms	17 years
Maximum | Crude Oil | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01
Segment Reporting Information [Line Items]
Remaining terms	10 years

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Investments in Non-Controlled Entities (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Schedule of Equity Method Investments [Line Items]
Total revenue	$ 674.7	$ 631.1
Operating	124.2	127.3
Trade accounts receivable	129.8		$ 135.2
Other accounts receivable	35.0		34.6
Change in Equity Method Investments [Roll Forward]
Investments, beginning balance	980.8
Additional investment	0.8
Proportionate share of earnings	35.8
Amortization of excess investment and capitalized interest	(0.4)
Earnings of non-controlled entities	35.4	39.1
Distributions from operations of non-controlled entities	38.4	51.4
Investments, ending balance	978.6
Transportation and terminals revenue
Schedule of Equity Method Investments [Line Items]
Total revenue	422.9	412.0
Equity Method Investee
Schedule of Equity Method Investments [Line Items]
Cost reimbursements	$ 1.9	0.5
BridgeTex
Schedule of Equity Method Investments [Line Items]
Interest in equity method investment	30.00%
BridgeTex | Equity Method Investee
Schedule of Equity Method Investments [Line Items]
Trade accounts receivable	$ 1.9		1.2
Other accounts receivable	0.0		0.0
Other Accounts Payable	0.0		0.3
BridgeTex | Equity Method Investee | Transportation and terminals revenue
Schedule of Equity Method Investments [Line Items]
Total revenue	$ 11.0	10.7
Double Eagle
Schedule of Equity Method Investments [Line Items]
Interest in equity method investment	50.00%
Double Eagle | Equity Method Investee
Schedule of Equity Method Investments [Line Items]
Trade accounts receivable	$ 0.2		0.2
Other accounts receivable	0.0		0.0
Other Accounts Payable	0.0		0.0
Double Eagle | Equity Method Investee | Transportation and terminals revenue
Schedule of Equity Method Investments [Line Items]
Total revenue	$ 0.7	1.0
HoustonLink
Schedule of Equity Method Investments [Line Items]
Interest in equity method investment	50.00%
HoustonLink | Equity Method Investee
Schedule of Equity Method Investments [Line Items]
Trade accounts receivable	$ 0.0		0.0
Other accounts receivable	0.0		0.0
Other Accounts Payable	$ 0.2		0.2
MVP
Schedule of Equity Method Investments [Line Items]
Interest in equity method investment	25.00%
MVP | Equity Method Investee
Schedule of Equity Method Investments [Line Items]
Trade accounts receivable	$ 0.0		0.0
Other accounts receivable	0.9		0.6
Other Accounts Payable	$ 5.2		2.2
Powder Springs Logistics, LLC
Schedule of Equity Method Investments [Line Items]
Interest in equity method investment	50.00%
Saddlehorn
Schedule of Equity Method Investments [Line Items]
Interest in equity method investment	30.00%
Saddlehorn | Equity Method Investee
Schedule of Equity Method Investments [Line Items]
Trade accounts receivable	$ 0.2		0.0
Other accounts receivable	0.2		0.2
Other Accounts Payable	0.0		0.0
Saddlehorn | Equity Method Investee | Transportation and terminals revenue
Schedule of Equity Method Investments [Line Items]
Total revenue	$ 0.6	0.6
Seabrook
Schedule of Equity Method Investments [Line Items]
Interest in equity method investment	50.00%
Seabrook | Equity Method Investee
Schedule of Equity Method Investments [Line Items]
Operating	$ 4.2	$ 5.3
Trade accounts receivable	0.2		0.0
Other accounts receivable	0.2		0.1
Other Accounts Payable	$ 0.9		$ 3.2
Texas Frontera LLC
Schedule of Equity Method Investments [Line Items]
Interest in equity method investment	50.00%

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Inventory (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Refined products	$ 181.6	$ 138.0
Transmix	64.5	72.4
LPGs	27.9	42.0
Crude oil	29.7	25.4
Additives	4.5	3.3
Total inventory	$ 308.2	$ 281.1

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Debt - Consolidated Debt (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Face value of long-term debt	$ 5,336.0	$ 5,108.0
Unamortized debt issuance costs	(37.2)	(37.8)
Net unamortized debt premium	18.4	18.6
Long-term debt, net	5,317.2	5,088.8
Commercial paper
Debt Instrument [Line Items]
Face value of long-term debt	$ 336.0	108.0
3.20% Notes due 2025
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	3.20%
Face value of long-term debt	$ 250.0	250.0
5.00% Notes due 2026
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	5.00%
Face value of long-term debt	$ 650.0	650.0
3.25% Notes due 2030
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	3.25%
Face value of long-term debt	$ 500.0	500.0
6.40% Notes due 2037
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	6.40%
Face value of long-term debt	$ 250.0	250.0
4.20% Notes due 2042
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	4.20%
Face value of long-term debt	$ 250.0	250.0
5.15% Notes due 2043
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	5.15%
Face value of long-term debt	$ 550.0	550.0
4.20% Notes due 2045
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	4.20%
Face value of long-term debt	$ 250.0	250.0
4.25% Notes due 2046
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	4.25%
Face value of long-term debt	$ 500.0	500.0
4.20% Notes due 2047
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	4.20%
Face value of long-term debt	$ 500.0	500.0
4.85% Notes due 2049
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	4.85%
Face value of long-term debt	$ 500.0	500.0
3.95% Notes due 2050
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	3.95%
Face value of long-term debt	$ 800.0	$ 800.0

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Debt - Narrative (Details)	3 Months Ended
	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Debt Instrument [Line Items]
Face value of long-term debt	$ 5,336,000,000	$ 5,108,000,000
Maximum
Debt Instrument [Line Items]
Debt to EBITDA ratio	5.0
Commercial paper
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 1,000,000,000
Face value of long-term debt	$ 336,000,000.0	108,000,000.0
Weighted average interest rate	0.50%
Commercial paper | Maximum
Debt Instrument [Line Items]
Debt instrument, term	397 days
Senior Notes | Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 1,000,000,000
Unused commitment fee	0.125%
Long term debt	$ 0	0
Obligation for letters of credit	$ 3,500,000	$ 3,500,000
Senior Notes | Revolving Credit Facility | Minimum
Debt Instrument [Line Items]
Unused commitment fee	0.075%
Senior Notes | Revolving Credit Facility | Maximum
Debt Instrument [Line Items]
Unused commitment fee	0.20%
London Interbank Offered Rate (LIBOR) | Senior Notes | Revolving Credit Facility | Minimum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	0.875%
London Interbank Offered Rate (LIBOR) | Senior Notes | Revolving Credit Facility | Maximum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.50%

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Leases (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Related Party Transaction [Line Items]
Total lease expense	$ 10.4	$ 12.3
Current lease liability	30.7		$ 25.8
Long-term lease liability	138.5		147.3
Right-of-use asset	168.3		174.2
Third-Party Leases
Related Party Transaction [Line Items]
Total lease expense	6.2	7.0
Current lease liability	21.0		17.8
Long-term lease liability	97.7		102.8
Right-of-use asset	117.8		121.7
Seabrook | Equity Method Investee
Related Party Transaction [Line Items]
Total lease expense	4.2	$ 5.3
Current lease liability	9.7		8.0
Long-term lease liability	40.8		44.5
Right-of-use asset	$ 50.5		$ 52.5

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Employee Benefit Plans - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($) plan	Mar. 31, 2021 USD ($)
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined contribution plan cost | $	$ 4.1	$ 3.1
Number of sponsored pension plans | plan	2
Number of sponsored pension plans, non-union employees | plan	1
Number of sponsored pension plans, union employees | plan	1
Pension Benefits
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Expected future employer contributions | $	$ 37.2
Other  Postretirement Benefits
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Expected future employer contributions | $	$ 0.5

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Employee Benefit Plans - Schedule Of Consolidated Net Periodic Benefit Costs (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Pension Benefits
Components of net periodic benefit costs:
Service cost	$ 7.1	$ 7.4
Interest cost	2.7	2.4
Expected return on plan assets	(3.4)	(3.1)
Amortization of actuarial loss	1.1	1.5
Net periodic benefit cost	7.5	8.2
Other  Postretirement Benefits
Components of net periodic benefit costs:
Service cost	0.1	0.1
Interest cost	0.1	0.1
Expected return on plan assets	0.0	0.0
Amortization of actuarial loss	0.1	0.1
Net periodic benefit cost	$ 0.3	$ 0.3

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Employee Benefit Plans - Schedule of Amounts Recognized in Other Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Changes in AOCL [Roll Forward]
Beginning balance	$ (1,899.8)	$ (2,303.8)
Recognition of actuarial loss amortization in income	1.2	1.6
Ending balance	(1,802.7)	(2,297.0)
Pension Benefits
Changes in AOCL [Roll Forward]
Recognition of actuarial loss amortization in income	1.1	1.5
Other  Postretirement Benefits
Changes in AOCL [Roll Forward]
Recognition of actuarial loss amortization in income	0.1	0.1
Accumulated Other Comprehensive Loss | Pension Benefits
Changes in AOCL [Roll Forward]
Beginning balance	(92.8)	(117.8)
Ending balance	(91.7)	(116.3)
Accumulated Other Comprehensive Loss | Other  Postretirement Benefits
Changes in AOCL [Roll Forward]
Beginning balance	(10.7)	(10.4)
Ending balance	$ (10.6)	$ (10.3)

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Long-Term Incentive Plan - Narrative (Details) - shares	Feb. 09, 2022	Mar. 31, 2022
Share-based Payment Arrangement [Abstract]
Limited partners' capital account, units authorized for issuance (in shares)		13,700,000
Limited partner unitholders, units remaining available (in shares)		1,800,000
Share-based compensation arrangement by share-based payment award, grants in period (in shares)	622,986
Vesting period	3 years

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Long-Term Incentive Plan - Equity-Based Incentive Compensation Expense (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Share-based Compensation Arrangements by Share-based Payment Award [Line Items]
Allocation of LTIP expense on consolidated statements of income	$ 14.4	$ 4.7
Performance-based awards
Share-based Compensation Arrangements by Share-based Payment Award [Line Items]
Allocation of LTIP expense on consolidated statements of income	8.0	2.2
Time-based awards
Share-based Compensation Arrangements by Share-based Payment Award [Line Items]
Allocation of LTIP expense on consolidated statements of income	$ 6.4	$ 2.5

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Derivative Financial Instruments - Narrative (Details) $ in Millions	Mar. 31, 2022 USD ($) bbl	Dec. 31, 2021 USD ($)
Derivative [Line Items]
Margin deposits	$ 130.8	$ 46.3
Cash flow hedge loss to be reclassified within twelve months	$ (3.5)
Energy Related Derivative
Derivative [Line Items]
Nonmonetary notional amount | bbl	30,000
Derivative liability		$ 1.5

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Derivative Financial Instruments - Schedule Of NYMEX Contracts And Butane Price Swap Purchase Agreements (Details) bbl in Millions	Mar. 31, 2022 bbl
Economic Hedges
Derivative [Line Items]
Nonmonetary notional amount	5.3
Economic Hedges Futures
Derivative [Line Items]
Nonmonetary notional amount	0.7

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Derivative Financial Instruments - Schedule of Derivative Offset Amounts (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Derivative [Line Items]
Commodity derivatives deposits	$ 130.8	$ 46.3
Exchange Traded
Derivative [Line Items]
Gross Amounts of Recognized Liabilities	(59.2)	(22.3)
Gross Amounts of Assets Offset in the Consolidated Balance Sheets	11.8	5.1
Net Amounts of Liabilities Presented in the Consolidated Balance Sheets	(47.4)	(17.2)
Commodity derivatives deposits	130.8	46.3
Net Asset Amount	$ 83.4	$ 29.1

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Derivative Financial Instruments - Derivatives and Hedging-Cash Flow Hedges (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Derivative Gains Included in AOCI [Roll Forward]
Beginning balance	$ 1,899.8	$ 2,303.8
Reclassification of net loss on cash flow hedges to income	0.9	0.9
Ending balance	1,802.7	2,297.0
Derivative Losses Included in AOCL
Derivative Gains Included in AOCI [Roll Forward]
Beginning balance	(51.5)	(55.0)
Ending balance	$ (50.6)	$ (54.1)

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Derivative Financial Instruments - Derivatives and Hedging Effect on Consolidated Statements of Income (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Derivative [Line Items]
Reclassification of net loss on cash flow hedges to income	$ (0.9)	$ (0.9)
Interest Rate Contract | Cash Flow Hedging | Designated as Hedging Instrument | Interest Expense
Derivative [Line Items]
Reclassification of net loss on cash flow hedges to income	$ (0.9)	$ (0.9)

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Derivative Financial Instruments - Derivatives And Hedging-Overall-Subsequent Measurement (Details) - Not Designated as Hedging Instrument - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized on Derivatives	$ (109.9)	$ (52.0)
Commodity Contract | Product sales revenue
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized on Derivatives	(116.4)	(52.7)
Commodity Contract | Cost of product sales
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized on Derivatives	8.6	1.4
Energy Related Derivative | Other operating income (expense)
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized on Derivatives	$ (2.1)	$ (0.7)

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Derivative Financial Instruments - Derivatives and Hedging - Designated (Details) - Not Designated as Hedging Instrument - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Derivatives, Fair Value [Line Items]
Derivative asset, fair value		$ 5.1
Derivative liability, fair value		23.8
Commodity Contract | Other current assets
Derivatives, Fair Value [Line Items]
Derivative asset, fair value	$ 11.8	5.1
Commodity Contract | Other current liabilities
Derivatives, Fair Value [Line Items]
Derivative liability, fair value	$ 59.2	22.3
Energy Related Derivative | Other current assets
Derivatives, Fair Value [Line Items]
Derivative asset, fair value		0.0
Energy Related Derivative | Other current liabilities
Derivatives, Fair Value [Line Items]
Derivative liability, fair value		$ 1.5

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Fair Value - Narrative (Details)	3 Months Ended
	Mar. 31, 2022 bbl terminal	Mar. 31, 2020 terminal
Derivative [Line Items]
Number of marine terminals sold | terminal	3	3
Energy Related Derivative
Derivative [Line Items]
Nonmonetary notional amount | bbl	30,000

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Fair Value - Schedule Of Carrying Amounts And Fair Values Of Financial Assets/Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Energy Related Derivative
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability		$ (1.5)
Fair Value, Inputs, Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term receivables	$ 0.0	0.0
Contractual obligations	0.0	0.0
Debt	0.0	0.0
Fair Value, Inputs, Level 1 | Commodity Contract
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	(50.5)	(18.6)
Fair Value, Inputs, Level 1 | Energy Related Derivative
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability		0.0
Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term receivables	0.0	0.0
Contractual obligations	0.0	0.0
Debt	(5,409.5)	(5,711.5)
Fair Value, Inputs, Level 2 | Commodity Contract
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	3.1	1.4
Fair Value, Inputs, Level 2 | Energy Related Derivative
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability		(1.5)
Fair Value, Inputs, Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term receivables	9.8	10.1
Contractual obligations	(9.6)	(9.8)
Debt	0.0	0.0
Fair Value, Inputs, Level 3 | Commodity Contract
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	0.0	0.0
Fair Value, Inputs, Level 3 | Energy Related Derivative
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term receivables	9.8	10.1
Contractual obligations	(9.6)	(9.8)
Debt	(5,317.2)	(5,088.8)
Carrying Amount | Commodity Contract
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	(47.4)	(17.2)
Carrying Amount | Energy Related Derivative
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability		(1.5)
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term receivables	9.8	10.1
Contractual obligations	(9.6)	(9.8)
Debt	(5,409.5)	(5,711.5)
Fair Value | Commodity Contract
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability	$ (47.4)	(17.2)
Fair Value | Energy Related Derivative
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liability		$ (1.5)

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Commitments and Contingencies (Details) $ in Millions		3 Months Ended
	Dec. 06, 2021 USD ($) patent facility	Mar. 31, 2022 USD ($) terminal	Mar. 31, 2021 USD ($)	Mar. 31, 2020 terminal	Apr. 11, 2022 USD ($)	Dec. 31, 2021 USD ($)	Jul. 31, 2018 USD ($)	Oct. 31, 2017 facility
Loss Contingencies [Line Items]
Liabilities recognized for estimated environmental costs		$ 9.7				$ 9.8
Environmental expenses		$ 0.9	$ 1.1
Number of marine terminals sold | terminal		3		3
Subsequent Event
Loss Contingencies [Line Items]
Loss contingency, estimate of possible loss					$ 0.3
Performance Guarantee | Other current liabilities
Loss Contingencies [Line Items]
Contractual obligations		$ 0.3				0.5
Performance Guarantee | Other Noncurrent Liabilities
Loss Contingencies [Line Items]
Contractual obligations		$ 8.9				$ 8.9
Powder Springs Logistics, LLC
Loss Contingencies [Line Items]
Interest in equity method investment		50.00%
Powder Springs Logistics, LLC | Guarantee of Indebtedness of Others | Equity Method Investee
Loss Contingencies [Line Items]
Contractual obligations		$ 0.4
Interest in equity method investment		50.00%
Guarantor obligations, maximum exposure, undiscounted		$ 25.0
Settled Litigation | Unfavorable Regulatory Action | Sunoco v.s. Magellan
Loss Contingencies [Line Items]
Alleged patent infringement, number of facilities | facility								8
Patents found infringed, number | patent	3
Damages awarded	$ 9.4
Patents found infringed, number of facilities | facility	8
Settled Litigation | Unfavorable Regulatory Action | Powder Springs Logistics, LLC | Sunoco v.s. Magellan
Loss Contingencies [Line Items]
Patents found infringed, number | patent	1
Damages awarded	$ 2.8
Maximum
Loss Contingencies [Line Items]
Loss contingency, estimate of possible loss							$ 0.4
Maximum | Subsequent Event
Loss Contingencies [Line Items]
Loss contingency, estimate of possible loss					$ 1.0

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Related Party Transactions (Details) - Director - Methvin Company - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Related Party Transaction [Line Items]
Other revenues from transactions with related party	$ 15.1	$ 11.1
Accounts receivable, related parties, current	$ 5.1		$ 5.4

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Partners' Capital and Distributions - Narrative (Details) $ in Billions	Mar. 31, 2022 USD ($)
Partners' Capital [Abstract]
Stock repurchase program, authorized amount	$ 1.5

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Partners' Capital and Distributions - Schedule of Capital Units (Details)	3 Months Ended
	Mar. 31, 2022 shares
Increase (Decrease) in Partners' Capital [Roll Forward]
Limited partner units outstanding, beginning balance (in shares)	212,387,990
Units repurchased (in shares)	(1,042,035)
Limited partner units outstanding, ending balance (in shares)	211,561,364
Management
Increase (Decrease) in Partners' Capital [Roll Forward]
Units issued (in shares)	200,949
Director
Increase (Decrease) in Partners' Capital [Roll Forward]
Units issued (in shares)	14,460

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Partners' Capital and Distributions - Schedule Of Distributions (Details) - USD ($) $ / shares in Units, $ in Millions							6 Months Ended	12 Months Ended
	May 13, 2022	Feb. 14, 2022	Nov. 12, 2021	Aug. 13, 2021	May 14, 2021	Feb. 12, 2021	Jun. 30, 2022	Dec. 31, 2021
Distribution Made to Limited Partner [Line Items]
Cash distribution per unit (in dollars per share)		$ 1.0375	$ 1.0375	$ 1.0275	$ 1.0275	$ 1.0275		$ 4.1200
Total cash distribution to limited partners		$ 220.6	$ 221.4	$ 226.6	$ 229.0	$ 229.4		$ 906.4
Scenario, Forecast
Distribution Made to Limited Partner [Line Items]
Cash distribution per unit (in dollars per share)	$ 1.0375						$ 2.0750
Total cash distribution to limited partners	$ 219.5						$ 440.1

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Subsequent Events (Details) - $ / shares	Jun. 30, 2022	May 13, 2022	Apr. 30, 2022	Feb. 14, 2022	Dec. 31, 2021	Nov. 12, 2021	Aug. 13, 2021	May 14, 2021	Feb. 12, 2021
Subsequent Event [Line Items]
Cash distribution per unit (in dollars per share)				$ 1.0375	$ 4.1200	$ 1.0375	$ 1.0275	$ 1.0275	$ 1.0275
Scenario, Forecast
Subsequent Event [Line Items]
Cash distribution per unit (in dollars per share)	$ 2.0750	$ 1.0375
Subsequent Event | Scenario, Forecast
Subsequent Event [Line Items]
Cash distribution per unit (in dollars per share)			$ 1.0375