ý | QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 05-0527861 | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
Yes x | No o |
Yes x | No o |
Large accelerated filer o | Accelerated filer x |
Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o |
Emerging growth company o |
Yes o | No x |
Page | |
Item 1. | Financial Statements |
March 31, 2018 | December 31, 2017 | ||||||
(Unaudited) | (Audited) | ||||||
Assets | |||||||
Cash | $ | $ | |||||
Accounts and other receivables, less allowance for doubtful accounts of $419 and $314, respectively | |||||||
Product exchange receivables | |||||||
Inventories (Note 6) | |||||||
Due from affiliates | |||||||
Fair value of derivatives (Note 10) | |||||||
Other current assets | |||||||
Assets held for sale (Note 4) | |||||||
Total current assets | |||||||
Property, plant and equipment, at cost | |||||||
Accumulated depreciation | ( | ) | ( | ) | |||
Property, plant and equipment, net | |||||||
Goodwill | |||||||
Investment in WTLPG (Note 7) | |||||||
Other assets, net (Note 9) | |||||||
Total assets | $ | $ | |||||
Liabilities and Partners’ Capital | |||||||
Trade and other accounts payable | $ | $ | |||||
Product exchange payables | |||||||
Due to affiliates | |||||||
Income taxes payable | |||||||
Fair value of derivatives (Note 10) | |||||||
Other accrued liabilities (Note 9) | |||||||
Total current liabilities | |||||||
Long-term debt, net (Note 8) | |||||||
Other long-term obligations | |||||||
Total liabilities | |||||||
Commitments and contingencies (Note 15) | |||||||
Partners’ capital (Note 11) | |||||||
Total partners’ capital | |||||||
Total liabilities and partners' capital | $ | $ |
Three Months Ended | |||||||
March 31, | |||||||
2018 | 2017 | ||||||
Revenues: | |||||||
Terminalling and storage * | $ | $ | |||||
Marine transportation * | |||||||
Natural gas services* | |||||||
Sulfur services | |||||||
Product sales: * | |||||||
Natural gas services | |||||||
Sulfur services | |||||||
Terminalling and storage | |||||||
Total revenues | |||||||
Costs and expenses: | |||||||
Cost of products sold: (excluding depreciation and amortization) | |||||||
Natural gas services * | |||||||
Sulfur services * | |||||||
Terminalling and storage * | |||||||
Expenses: | |||||||
Operating expenses * | |||||||
Selling, general and administrative * | |||||||
Depreciation and amortization | |||||||
Total costs and expenses | |||||||
Other operating loss | ( | ) | ( | ) | |||
Operating income | |||||||
Other income (expense): | |||||||
Equity in earnings of WTLPG | |||||||
Interest expense, net | ( | ) | ( | ) | |||
Other, net | |||||||
Total other expense | ( | ) | ( | ) | |||
Net income before taxes | |||||||
Income tax expense | ( | ) | ( | ) | |||
Net income | |||||||
Less general partner's interest in net income | ( | ) | ( | ) | |||
Less income allocable to unvested restricted units | ( | ) | ( | ) | |||
Limited partners' interest in net income | $ | $ | |||||
Net income per unit attributable to limited partners - basic | $ | $ | |||||
Net income per unit attributable to limited partners - diluted | $ | $ | |||||
Weighted average limited partner units - basic | |||||||
Weighted average limited partner units - diluted |
Three Months Ended | ||||||||
March 31, | ||||||||
2018 | 2017 | |||||||
Revenues:* | ||||||||
Terminalling and storage | $ | $ | ||||||
Marine transportation | ||||||||
Natural gas services | ||||||||
Product Sales | ||||||||
Costs and expenses:* | ||||||||
Cost of products sold: (excluding depreciation and amortization) | ||||||||
Natural gas services | ||||||||
Sulfur services | ||||||||
Terminalling and storage | ||||||||
Expenses: | ||||||||
Operating expenses | ||||||||
Selling, general and administrative |
Partners’ Capital | ||||||||||||||
Common Limited | General Partner Amount | |||||||||||||
Units | Amount | Total | ||||||||||||
Balances - January 1, 2017 | $ | $ | $ | |||||||||||
Net income | — | |||||||||||||
Issuance of common units, net | — | |||||||||||||
Issuance of restricted units | — | |||||||||||||
Forfeiture of restricted units | ( | ) | — | |||||||||||
General partner contribution | — | — | ||||||||||||
Cash distributions | — | ( | ) | ( | ) | ( | ) | |||||||
Unit-based compensation | — | — | ||||||||||||
Excess purchase price over carrying value of acquired assets | — | ( | ) | — | ( | ) | ||||||||
Reimbursement of excess purchase price over carrying value of acquired assets | — | — | ||||||||||||
Balances - March 31, 2017 | $ | $ | $ | |||||||||||
Balances - January 1, 2018 | $ | $ | $ | |||||||||||
Net income | — | |||||||||||||
Issuance of common units, net of issuance related costs | ( | ) | — | ( | ) | |||||||||
Issuance of restricted units | — | |||||||||||||
Forfeiture of restricted units | ( | ) | — | |||||||||||
Cash distributions | — | ( | ) | ( | ) | ( | ) | |||||||
Unit-based compensation | — | — | ||||||||||||
Excess purchase price over carrying value of acquired assets | — | ( | ) | — | ( | ) | ||||||||
Purchase of treasury units | ( | ) | ( | ) | — | ( | ) | |||||||
Balances - March 31, 2018 | $ | $ | $ |
Three Months Ended | |||||||
March 31, | |||||||
2018 | 2017 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | $ | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | |||||||
Amortization of deferred debt issuance costs | |||||||
Amortization of premium on notes payable | ( | ) | ( | ) | |||
Loss on sale of property, plant and equipment | |||||||
Equity in earnings of WTLPG | ( | ) | ( | ) | |||
Derivative (income) loss | ( | ) | |||||
Net cash received (paid) for commodity derivatives | ( | ) | |||||
Unit-based compensation | |||||||
Cash distributions from WTLPG | |||||||
Change in current assets and liabilities, excluding effects of acquisitions and dispositions: | |||||||
Accounts and other receivables | |||||||
Product exchange receivables | ( | ) | ( | ) | |||
Inventories | |||||||
Due from affiliates | ( | ) | ( | ) | |||
Other current assets | ( | ) | ( | ) | |||
Trade and other accounts payable | ( | ) | ( | ) | |||
Product exchange payables | ( | ) | ( | ) | |||
Due to affiliates | ( | ) | ( | ) | |||
Income taxes payable | |||||||
Other accrued liabilities | ( | ) | ( | ) | |||
Change in other non-current assets and liabilities | |||||||
Net cash provided by operating activities | |||||||
Cash flows from investing activities: | |||||||
Payments for property, plant and equipment | ( | ) | ( | ) | |||
Acquisitions | ( | ) | |||||
Payments for plant turnaround costs | ( | ) | |||||
Proceeds from sale of property, plant and equipment | ( | ) | |||||
Contributions to WTLPG | ( | ) | |||||
Net cash used in investing activities | ( | ) | ( | ) | |||
Cash flows from financing activities: | |||||||
Payments of long-term debt | ( | ) | ( | ) | |||
Proceeds from long-term debt | |||||||
Proceeds from issuance of common units, net of issuance related costs | ( | ) | |||||
General partner contribution | |||||||
Purchase of treasury units | ( | ) | |||||
Payment of debt issuance costs | ( | ) | ( | ) | |||
Excess purchase price over carrying value of acquired assets | ( | ) | ( | ) | |||
Reimbursement of excess purchase price over carrying value of acquired assets | |||||||
Cash distributions paid | ( | ) | ( | ) | |||
Net cash used in financing activities | ( | ) | ( | ) | |||
Net increase in cash | |||||||
Cash at beginning of period | |||||||
Cash at end of period | $ | $ | |||||
Non-cash additions to property, plant and equipment | $ | $ |
Original purchase price | $ | ||
Purchase price true-up | |||
Historical carrying value of assets allocated to "Property, plant and equipment" | |||
Excess purchase price over carrying value of acquired assets | $ |
March 31, 2018 | December 31, 2017 | ||||||
Terminalling and storage | $ | $ | |||||
Marine transportation | |||||||
Assets held for sale | $ | $ |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Terminalling and storage segment | |||||||
Lubricant product sales | $ | $ | |||||
Throughput and storage | |||||||
$ | $ | ||||||
Natural gas services segment | |||||||
Natural gas liquids product sales | $ | $ | |||||
Natural gas storage | |||||||
$ | $ | ||||||
Sulfur service segment | |||||||
Sulfur product sales | $ | $ | |||||
Fertilizer product sales | |||||||
Sulfur services | |||||||
$ | $ | ||||||
Marine transportation segment | |||||||
Inland transportation | $ | $ | |||||
Offshore transportation | |||||||
$ | $ |
2018 | 2019 | 2020 | 2021 | 2022 | Thereafter | Total | |||||||||||||||||||||
Terminalling and storage | |||||||||||||||||||||||||||
Storage and throughput | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Natural gas services | |||||||||||||||||||||||||||
Natural gas storage | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Sulfur services | |||||||||||||||||||||||||||
Sulfur product sales | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Marine transportation | |||||||||||||||||||||||||||
Offshore transportation | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ |
March 31, 2018 | December 31, 2017 | ||||||
Natural gas liquids | $ | $ | |||||
Sulfur | |||||||
Sulfur based products | |||||||
Lubricants | |||||||
Other | |||||||
$ | $ |
As of March 31, | Three Months Ended March 31, | ||||||||||||||||||
Total Assets | Long-Term Debt | Members' Equity | Revenues | Net Income | |||||||||||||||
2018 | |||||||||||||||||||
WTLPG | $ | $ | $ | $ | $ | ||||||||||||||
As of December 31, | |||||||||||||||||||
2017 | |||||||||||||||||||
WTLPG | $ | $ | $ | $ | $ |
March 31, 2018 | December 31, 2017 | ||||||
$664,444 Revolving credit facility at variable interest rate (4.86%1 weighted average at March 31, 2018), due March 2020 secured by substantially all of the Partnership’s assets, including, without limitation, inventory, accounts receivable, vessels, equipment, fixed assets and the interests in the Partnership’s operating subsidiaries and equity method investees, net of unamortized debt issuance costs of $5,573 and $4,986, respectively2,3 | $ | $ | |||||
$400,000 Senior notes, 7.25% interest, net of unamortized debt issuance costs of $1,967 and $2,138, respectively, including unamortized premium of $879 and $956, respectively, issued $250,000 February 2013 and $150,000 April 2014, $26,200 repurchased during 2015, due February 2021, unsecured3,4 | |||||||
Total long-term debt, net | $ | $ |
March 31, 2018 | December 31, 2017 | ||||||
Customer contracts and relationships, net | $ | $ | |||||
Other intangible assets | |||||||
Other | |||||||
$ | $ |
March 31, 2018 | December 31, 2017 | ||||||
Accrued interest | $ | $ | |||||
Asset retirement obligations | |||||||
Property and other taxes payable | |||||||
Accrued payroll | |||||||
Other | |||||||
$ | $ |
March 31, 2018 | |||
Beginning asset retirement obligations | $ | ||
Revisions to existing liabilities1 | |||
Accretion expense | |||
Liabilities settled | ( | ) | |
Ending asset retirement obligations | |||
Current portion of asset retirement obligations2 | ( | ) | |
Long-term portion of asset retirement obligations3 | $ |
Fair Values of Derivative Instruments in the Consolidated and Condensed Balance Sheets | ||||||||||||||||
Derivative Assets | Derivative Liabilities | |||||||||||||||
Fair Values | Fair Values | |||||||||||||||
Balance Sheet Location | March 31, 2018 | December 31, 2017 | Balance Sheet Location | March 31, 2018 | December 31, 2017 | |||||||||||
Derivatives not designated as hedging instruments: | Current: | |||||||||||||||
Commodity contracts | Fair value of derivatives | $ | $ | Fair value of derivatives | $ | $ | ||||||||||
Total derivatives not designated as hedging instruments | $ | $ | $ | $ |
Location of Gain (Loss) Recognized in Income on Derivatives | Amount of Gain (Loss) Recognized in Income on Derivatives | |||||||
2018 | 2017 | |||||||
Derivatives not designated as hedging instruments: | ||||||||
Commodity contracts | Cost of products sold | $ | $ | ( | ) | |||
Total effect of derivatives not designated as hedging instruments | $ | $ | ( | ) |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Net income | $ | $ | |||||
Less general partner’s interest in net income (loss): | |||||||
Distributions payable on behalf of IDRs | |||||||
Distributions payable on behalf of general partner interest | |||||||
General partner interest in undistributed loss | ( | ) | ( | ) | |||
Less income allocable to unvested restricted units | |||||||
Limited partners’ interest in net income (loss) | $ | $ |
Three Months Ended March 31, | |||||
2018 | 2017 | ||||
Basic weighted average limited partner units outstanding | |||||
Dilutive effect of restricted units issued | |||||
Total weighted average limited partner diluted units outstanding |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Employees | $ | $ | |||||
Non-employee directors | |||||||
Total unit-based compensation expense | $ | $ |
Number of Units | Weighted Average Grant-Date Fair Value Per Unit | ||||||
Non-vested, beginning of period | $ | ||||||
Granted (TBRU) | $ | ||||||
Granted (PBRU) | $ | ||||||
Vested | ( | ) | $ | ||||
Forfeited | ( | ) | $ | ||||
Non-Vested, end of period | $ | ||||||
Aggregate intrinsic value, end of period | $ |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Aggregate intrinsic value of units vested | $ | $ | |||||
Fair value of units vested |
• | providing terminalling and storage services for petroleum products and by-products including the refining, blending and packaging of finished lubricants; |
• | the ownership and/or operation on the Partnership’s behalf of any asset or group of assets owned by it or its affiliates; |
• | any business operated by Martin Resource Management, including the following: |
◦ | providing land transportation of various liquids; |
◦ | distributing fuel oil, marine fuel and other liquids; |
◦ | providing marine bunkering and other shore-based marine services in Texas, Louisiana, Mississippi, Alabama, and Florida; |
◦ | operating a crude oil gathering business in Stephens, Arkansas; |
◦ | providing crude oil gathering, refining, and marketing services of base oils, asphalt, and distillate products in Smackover, Arkansas; |
◦ | providing crude oil marketing and transportation from the well head to the end market; |
◦ | operating an environmental consulting company; |
◦ | operating an engineering services company; |
◦ | supplying employees and services for the operation of the Partnership's business; and |
◦ | operating, solely for the Partnership's account, the asphalt facilities in Omaha, Nebraska, Port Neches, Texas, Hondo, Texas, and South Houston, Texas. |
• | any business that Martin Resource Management acquires or constructs that has a fair market value of less than $ |
• | any business that Martin Resource Management acquires or constructs that has a fair market value of $ |
• | any business that Martin Resource Management acquires or constructs where a portion of such business includes a restricted business and the fair market value of the restricted business is $ |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Revenues: | |||||||
Terminalling and storage | $ | $ | |||||
Marine transportation | |||||||
Natural gas services | |||||||
Product sales: | |||||||
Natural gas services | |||||||
Sulfur services | |||||||
Terminalling and storage | |||||||
$ | $ |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Cost of products sold: | |||||||
Natural gas services | $ | $ | |||||
Sulfur services | |||||||
Terminalling and storage | |||||||
$ | $ |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Operating expenses: | |||||||
Marine transportation | $ | $ | |||||
Natural gas services | |||||||
Sulfur services | |||||||
Terminalling and storage | |||||||
$ | $ |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Selling, general and administrative: | |||||||
Marine transportation | $ | $ | |||||
Natural gas services | |||||||
Sulfur services | |||||||
Terminalling and storage | |||||||
Indirect, including overhead allocation | |||||||
$ | $ |
Three Months Ended March 31, 2018 | Operating Revenues | Intersegment Revenues Eliminations | Operating Revenues after Eliminations | Depreciation and Amortization | Operating Income (Loss) after Eliminations | Capital Expenditures and Plant Turnaround Costs | |||||||||||||||||
Terminalling and storage | $ | $ | ( | ) | $ | $ | $ | $ | |||||||||||||||
Natural gas services | |||||||||||||||||||||||
Sulfur services | |||||||||||||||||||||||
Marine transportation | ( | ) | |||||||||||||||||||||
Indirect selling, general and administrative | — | — | — | ( | ) | ||||||||||||||||||
Total | $ | $ | ( | ) | $ | $ | $ | $ |
Three Months Ended March 31, 2017 | Operating Revenues | Intersegment Revenues Eliminations | Operating Revenues after Eliminations | Depreciation and Amortization | Operating Income (Loss) after Eliminations | Capital Expenditures and Plant Turnaround Costs | |||||||||||||||||
Terminalling and storage | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | |||||||||||||
Natural gas services | |||||||||||||||||||||||
Sulfur services | |||||||||||||||||||||||
Marine transportation | ( | ) | |||||||||||||||||||||
Indirect selling, general and administrative | — | — | — | ( | ) | ||||||||||||||||||
Total | $ | $ | ( | ) | $ | $ | $ | $ |
March 31, 2018 | December 31, 2017 | ||||||
Total assets: | |||||||
Terminalling and storage | $ | $ | |||||
Natural gas services | |||||||
Sulfur services | |||||||
Marine transportation | |||||||
Total assets | $ | $ |
Level 2 | |||||||
March 31, 2018 | December 31, 2017 | ||||||
Commodity derivative contracts, net | $ | $ | ( | ) |
• | Accounts and other receivables, trade and other accounts payable, accrued interest payable, other accrued liabilities, income taxes payable and due from/to affiliates: The carrying amounts approximate fair value due to the short maturity and highly liquid nature of these instruments, and as such these have been excluded from the table below. There is negligible credit risk associated with these instruments. |
• |
March 31, 2018 | December 31, 2017 | ||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
2021 Senior unsecured notes | $ | $ | $ | $ |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
• | Natural gas liquids transportation and distribution services and natural gas storage; |
• | Terminalling and storage services for petroleum products and by-products including the refining of naphthenic crude oil and the blending and packaging of finished lubricants; |
• | Sulfur and sulfur-based products gathering, processing, marketing, manufacturing and distribution; and |
• | Marine transportation services for petroleum products and by-products. |
Description | Judgments and Uncertainties | Effect if Actual Results Differ from Estimates and Assumptions | ||
Impairment of Long-Lived Assets | ||||
We periodically evaluate whether the carrying value of long-lived assets has been impaired when circumstances indicate the carrying value of the assets may not be recoverable. These evaluations are based on undiscounted cash flow projections over the remaining useful life of the asset. The carrying value is not recoverable if it exceeds the sum of the undiscounted cash flows. Any impairment loss is measured as the excess of the asset's carrying value over its fair value. | Our impairment analyses require management to use judgment in estimating future cash flows and useful lives, as well as assessing the probability of different outcomes. | No impairment of long-lived assets was recorded during the three months ended March 31, 2018 or 2017. | ||
Asset Retirement Obligations | ||||
Asset retirement obligations ("AROs") associated with a contractual or regulatory remediation requirement are recorded at fair value in the period in which the obligation can be reasonably estimated and depreciated over the life of the related asset or contractual term. The liability is determined using a credit-adjusted risk-free interest rate and is accreted over time until the obligation is settled. | Determining the fair value of AROs requires management judgment to evaluate required remediation activities, estimate the cost of those activities and determine the appropriate interest rate. | If actual results differ from judgments and assumptions used in valuing an ARO, we may experience significant changes in ARO balances. The establishment of an ARO has no initial impact on earnings. During the three months ended March 31, 2018, we made upward revisions to our asset retirement obligations in the amount of $4.8 million. |
• | providing land transportation of various liquids using a fleet of trucks and road vehicles and road trailers; |
• | distributing fuel oil, ammonia, asphalt, marine fuel and other liquids; |
• | providing marine bunkering and other shore-based marine services in Texas, Louisiana, Mississippi, Alabama, and Florida; |
• | operating a crude oil gathering business in Stephens, Arkansas; |
• | providing crude oil gathering, refining, and marketing services of base oils, asphalt, and distillate products in Smackover, Arkansas; |
• | providing crude oil marketing and transportation from the well head to the end market; |
• | operating an environmental consulting company; |
• | operating an engineering services company; |
• | supplying employees and services for the operation of our business; and |
• | operating, solely for our account, the asphalt facilities in Omaha, Nebraska, Port Neches, Texas, Hondo, Texas, and South Houston, Texas. |
Three Months Ended | |||||||
March 31, | |||||||
2018 | 2017 | ||||||
(in thousands) | |||||||
Net income | $ | 12,818 | $ | 13,583 | |||
Adjustments: | |||||||
Interest expense, net | 12,685 | 10,920 | |||||
Income tax expense | 149 | 180 | |||||
Depreciation and amortization | 19,210 | 25,336 | |||||
EBITDA | 44,862 | 50,019 | |||||
Adjustments: | |||||||
Equity in earnings of WTLPG | (1,595 | ) | (905 | ) | |||
Loss on sale of property, plant and equipment | 2 | 155 | |||||
Unrealized mark-to-market on commodity derivatives | (154 | ) | (3,837 | ) | |||
Distributions from WTLPG | 1,500 | 1,200 | |||||
Unit-based compensation | 132 | 186 | |||||
Adjusted EBITDA | 44,747 | 46,818 | |||||
Adjustments: | |||||||
Interest expense, net | (12,685 | ) | (10,920 | ) | |||
Income tax expense | (149 | ) | (180 | ) | |||
Amortization of debt premium | (77 | ) | (77 | ) | |||
Amortization of deferred debt issuance costs | 819 | 721 | |||||
Payments for plant turnaround costs | — | (1,394 | ) | ||||
Maintenance capital expenditures | (6,002 | ) | (4,668 | ) | |||
Distributable Cash Flow | $ | 26,653 | $ | 30,300 |
Operating Revenues | Intersegment Revenues Eliminations | Operating Revenues after Eliminations | Operating Income (Loss) | Operating Income (Loss) Intersegment Eliminations | Operating Income (Loss) after Eliminations | ||||||||||||||||||
Three Months Ended March 31, 2018 | (in thousands) | ||||||||||||||||||||||
Terminalling and storage | $ | 61,983 | $ | (1,439 | ) | $ | 60,544 | $ | 3,619 | $ | (897 | ) | $ | 2,722 | |||||||||
Natural gas services | 174,519 | — | 174,519 | 16,620 | 791 | 17,411 | |||||||||||||||||
Sulfur services | 37,687 | — | 37,687 | 7,687 | (695 | ) | 6,992 | ||||||||||||||||
Marine transportation | 12,028 | (574 | ) | 11,454 | 362 | 801 | 1,163 | ||||||||||||||||
Indirect selling, general and administrative | — | — | — | (4,231 | ) | — | (4,231 | ) | |||||||||||||||
Total | $ | 286,217 | $ | (2,013 | ) | $ | 284,204 | $ | 24,057 | $ | — | $ | 24,057 |
Operating Revenues | Intersegment Revenues Eliminations | Operating Revenues after Eliminations | Operating Income (Loss) | Operating Income (Loss) Intersegment Eliminations | Operating Income (Loss) after Eliminations | ||||||||||||||||||
Three Months Ended March 31, 2017 | (in thousands) | ||||||||||||||||||||||
Terminalling and storage | $ | 58,578 | $ | (1,773 | ) | $ | 56,805 | $ | (893 | ) | $ | (1,208 | ) | $ | (2,101 | ) | |||||||
Natural gas services | 141,322 | — | 141,322 | 17,149 | 1,124 | 18,273 | |||||||||||||||||
Sulfur services | 42,377 | — | 42,377 | 11,480 | (713 | ) | 10,767 | ||||||||||||||||
Marine transportation | 13,414 | (593 | ) | 12,821 | 432 | 797 | 1,229 | ||||||||||||||||
Indirect selling, general and administrative | — | — | — | (4,420 | ) | — | (4,420 | ) | |||||||||||||||
Total | $ | 255,691 | $ | (2,366 | ) | $ | 253,325 | $ | 23,748 | $ | — | $ | 23,748 |
Three Months Ended March 31, | Variance | Percent Change | ||||||||||||
2018 | 2017 | |||||||||||||
(In thousands, except BBL per day) | ||||||||||||||
Revenues: | ||||||||||||||
Services | $ | 25,503 | $ | 26,431 | $ | (928 | ) | (4 | )% | |||||
Products | 36,480 | 32,147 | 4,333 | 13 | % | |||||||||
Total revenues | 61,983 | 58,578 | 3,405 | 6 | % | |||||||||
Cost of products sold | 31,955 | 27,011 | 4,944 | 18 | % | |||||||||
Operating expenses | 14,994 | 15,645 | (651 | ) | (4 | )% | ||||||||
Selling, general and administrative expenses | 1,256 | 1,325 | (69 | ) | (5 | )% | ||||||||
Depreciation and amortization | 10,159 | 15,477 | (5,318 | ) | (34 | )% | ||||||||
3,619 | (880 | ) | 4,499 | (511 | )% | |||||||||
Other operating loss | — | (13 | ) | 13 | (100 | )% | ||||||||
Operating income (loss) | $ | 3,619 | $ | (893 | ) | $ | 4,512 | (505 | )% | |||||
Lubricant sales volumes (gallons) | 5,908 | 5,334 | 574 | 11 | % | |||||||||
Shore-based throughput volumes (guaranteed minimum) (gallons) | 20,000 | 41,667 | (21,667 | ) | (52 | )% | ||||||||
Smackover refinery throughput volumes (guaranteed minimum) (BBL per day) | 6,500 | 6,500 | — | — | % |
Three Months Ended March 31, | Variance | Percent Change | ||||||||||||
2018 | 2017 | |||||||||||||
(In thousands) | ||||||||||||||
Revenues: | ||||||||||||||
Services | $ | 15,356 | $ | 14,665 | $ | 691 | 5 | % | ||||||
Products | 159,163 | 126,657 | 32,506 | 26 | % | |||||||||
Total revenues | 174,519 | 141,322 | 33,197 | 23 | % | |||||||||
Cost of products sold | 143,748 | 109,303 | 34,445 | 32 | % | |||||||||
Operating expenses | 5,780 | 5,658 | 122 | 2 | % | |||||||||
Selling, general and administrative expenses | 3,070 | 3,051 | 19 | 1 | % | |||||||||
Depreciation and amortization | 5,301 | 6,161 | (860 | ) | (14 | )% | ||||||||
Operating income | $ | 16,620 | $ | 17,149 | $ | (529 | ) | (3 | )% | |||||
Distributions from WTLPG | $ | 1,500 | $ | 1,200 | $ | 300 | 25 | % | ||||||
NGL sales volumes (Bbls) | 3,441 | 2,810 | 631 | 22 | % |
Three Months Ended March 31, | Variance | Percent Change | ||||||||||||
2018 | 2017 | |||||||||||||
(In thousands) | ||||||||||||||
Revenues: | ||||||||||||||
Services | $ | 2,787 | $ | 2,850 | $ | (63 | ) | (2 | )% | |||||
Products | 34,900 | 39,527 | (4,627 | ) | (12 | )% | ||||||||
Total revenues | 37,687 | 42,377 | (4,690 | ) | (11 | )% | ||||||||
Cost of products sold | 23,987 | 24,574 | (587 | ) | (2 | )% | ||||||||
Operating expenses | 2,912 | 3,247 | (335 | ) | (10 | )% | ||||||||
Selling, general and administrative expenses | 1,035 | 1,021 | 14 | 1 | % | |||||||||
Depreciation and amortization | 2,064 | 2,033 | 31 | 2 | % | |||||||||
7,689 | 11,502 | (3,813 | ) | (33 | )% | |||||||||
Other operating loss | (2 | ) | (22 | ) | 20 | (91 | )% | |||||||
Operating income | $ | 7,687 | $ | 11,480 | $ | (3,793 | ) | (33 | )% | |||||
Sulfur (long tons) | 176 | 217 | (41 | ) | (19 | )% | ||||||||
Fertilizer (long tons) | 88 | 94 | (6 | ) | (6 | )% | ||||||||
Total sulfur services volumes (long tons) | 264 | 311 | (47 | ) | (15 | )% |
Three Months Ended March 31, | Variance | Percent Change | |||||||||||
2018 | 2017 | ||||||||||||
(In thousands) | |||||||||||||
Revenues | $ | 12,028 | $ | 13,414 | $ | (1,386 | ) | (10)% | |||||
Operating expenses | 9,904 | 11,093 | (1,189 | ) | (11)% | ||||||||
Selling, general and administrative expenses | 76 | 104 | (28 | ) | (27)% | ||||||||
Depreciation and amortization | 1,686 | 1,665 | 21 | 1% | |||||||||
$ | 362 | $ | 552 | $ | (190 | ) | (34)% | ||||||
Other operating loss | — | (120 | ) | 120 | (100)% | ||||||||
Operating income | $ | 362 | $ | 432 | $ | (70 | ) | (16)% |
Three Months Ended March 31, | Variance | Percent Change | ||||||||||||
2018 | 2017 | |||||||||||||
(In thousands) | ||||||||||||||
Equity in earnings of WTLPG | $ | 1,595 | $ | 905 | $ | 690 | 76 | % |
Three Months Ended March 31, | Variance | Percent Change | ||||||||||||
2018 | 2017 | |||||||||||||
(In thousands) | ||||||||||||||
Distributions from WTLPG | $ | 1,500 | $ | 1,200 | $ | 300 | 25 | % |
Three Months Ended March 31, | Variance | Percent Change | |||||||||||
2018 | 2017 | ||||||||||||
(In thousands) | |||||||||||||
Revolving loan facility | $ | 5,110 | $ | 4,145 | $ | 965 | 23% | ||||||
7.25% Senior notes | 6,474 | 6,474 | — | —% | |||||||||
Amortization of deferred debt issuance costs | 819 | 721 | 98 | 14% | |||||||||
Amortization of debt premium | (77 | ) | (77 | ) | — | —% | |||||||
Other | 520 | 435 | 85 | 20% | |||||||||
Capitalized interest | (161 | ) | (223 | ) | 62 | (28)% | |||||||
Interest income | — | (555 | ) | 555 | (100)% | ||||||||
Total interest expense, net | $ | 12,685 | $ | 10,920 | $ | 1,765 | 16% |
Three Months Ended March 31, | Variance | Percent Change | |||||||||||
2018 | 2017 | ||||||||||||
(In thousands) | |||||||||||||
Indirect selling, general and administrative expenses | $ | 4,231 | $ | 4,420 | $ | (189 | ) | (4)% |
Three Months Ended March 31, | Variance | Percent Change | |||||||||||
2018 | 2017 | ||||||||||||
(In thousands) | |||||||||||||
Conflicts Committee approved reimbursement amount | $ | 4,104 | $ | 4,104 | $ | — | —% |
Three Months Ended March 31, | Variance | Percent Change | |||||||||||
2018 | 2017 | ||||||||||||
(In thousands) | |||||||||||||
Net cash provided by (used in): | |||||||||||||
Operating activities | $ | 55,390 | $ | 56,526 | $ | (1,136 | ) | (2)% | |||||
Investing activities | (16,992 | ) | (25,923 | ) | 8,931 | (34)% | |||||||
Financing activities | (38,241 | ) | (30,579 | ) | (7,662 | ) | 25% | ||||||
Net increase in cash and cash equivalents | $ | 157 | $ | 24 | $ | 133 | 554% |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
(In thousands) | |||||||
Expansion capital expenditures | $ | 6,967 | $ | 3,252 | |||
Maintenance capital expenditures | 6,002 | 4,668 | |||||
Plant turnaround costs | — | 1,394 | |||||
Total | $ | 12,969 | $ | 9,314 |
Payments due by period | |||||||||||||||||||
Type of Obligation | Total Obligation | Less than One Year | 1-3 Years | 3-5 Years | Due Thereafter | ||||||||||||||
Revolving credit facility | $ | 428,000 | $ | — | $ | 428,000 | $ | — | $ | — | |||||||||
2021 Senior unsecured notes | 373,800 | — | 373,800 | — | — | ||||||||||||||
Throughput commitment | 19,914 | 6,072 | 12,636 | 1,206 | — | ||||||||||||||
Operating leases | 26,556 | 8,121 | 7,723 | 3,126 | 7,586 | ||||||||||||||
Interest payable on fixed long-term debt obligations | 77,914 | 27,101 | 50,813 | — | — | ||||||||||||||
Total contractual cash obligations | $ | 926,184 | $ | 41,294 | $ | 872,972 | $ | 4,332 | $ | 7,586 |
Leverage Ratio | Base Rate Loans | Eurodollar Rate Loans | Letters of Credit | |||||
Less than 3.00 to 1.00 | 1.00 | % | 2.00 | % | 2.00 | % | ||
Greater than or equal to 3.00 to 1.00 and less than 3.50 to 1.00 | 1.25 | % | 2.25 | % | 2.25 | % | ||
Greater than or equal to 3.50 to 1.00 and less than 4.00 to 1.00 | 1.50 | % | 2.50 | % | 2.50 | % | ||
Greater than or equal to 4.00 to 1.00 and less than 4.50 to 1.00 | 1.75 | % | 2.75 | % | 2.75 | % | ||
Greater than or equal to 4.50 to 1.00 | 2.00 | % | 3.00 | % | 3.00 | % |
Item 3. | Quantitative and Qualitative Disclosures about Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 6. | Exhibits |
Martin Midstream Partners L.P. | ||||
By: | Martin Midstream GP LLC | |||
Its General Partner | ||||
Date: 4/25/2018 | By: | /s/ Robert D. Bondurant | ||
Robert D. Bondurant | ||||
Executive Vice President, Treasurer, Chief Financial Officer, and Principal Accounting Officer |
Exhibit Number | Exhibit Name | |
10.1 | ||
31.1* | ||
31.2* | ||
32.1* | ||
32.2* | ||
101 | Interactive Data: the following financial information from Martin Midstream Partners L.P.’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2018, formatted in Extensible Business Reporting Language: (1) the Consolidated and Condensed Balance Sheets; (2) the Consolidated and Condensed Statements of Income; (3) the Consolidated and Condensed Statements of Cash Flows; (4) the Consolidated and Condensed Statements of Capital; and (5) the Notes to Consolidated and Condensed Financial Statements. |
Date: 4/25/2018 | |
/s/ Ruben S. Martin | |
Ruben S. Martin, President and | |
Chief Executive Officer of | |
Martin Midstream GP LLC, | |
the General Partner of Martin Midstream Partners L.P. |
Date: 4/25/2018 | |
/s/ Robert D. Bondurant | |
Robert D. Bondurant, Executive Vice President, Treasurer, Chief Financial Officer and Principal Accounting Officer of | |
Martin Midstream GP LLC, | |
the General Partner of Martin Midstream Partners L.P. |
/s/ Ruben S. Martin | ||
Ruben S. Martin, | ||
Chief Executive Officer | ||
of Martin Midstream GP LLC, | ||
the General Partner of Martin Midstream Partners L.P. | ||
April 25, 2018 |
/s/ Robert D. Bondurant | ||
Robert D. Bondurant, | ||
Chief Financial Officer | ||
of Martin Midstream GP LLC, | ||
the General Partner of Martin Midstream Partners L.P. | ||
April 25, 2018 |
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Apr. 25, 2018 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | MARTIN MIDSTREAM PARTNERS LP | |
Entity Central Index Key | 0001176334 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding (in shares) | 39,052,237 |
CONSOLIDATED AND CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 419 | $ 314 |
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2018 |
Mar. 31, 2017 |
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Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Terminalling and storage | [1] | $ 24,064 | $ 24,658 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marine transportation | [1] | 11,454 | 12,821 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Natural gas services | [1] | 15,356 | 14,665 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sulfur services | 2,787 | 2,850 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product sales: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Natural gas services | [1] | 159,163 | 126,657 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sulfur services | [1] | 34,900 | 39,527 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Terminalling and storage | [1] | 36,480 | 32,147 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total product sales | [1] | 230,543 | 198,331 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | 284,204 | 253,325 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of products sold: (excluding depreciation and amortization) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Natural gas services | [1] | 142,957 | 108,179 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sulfur services | [1] | 23,896 | 24,483 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Terminalling and storage | [1] | 31,413 | 26,446 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total cost of products sold (excluding depreciation and amortization) | [1] | 198,266 | 159,108 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses | [1] | 33,001 | 35,057 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | [1] | 9,668 | 9,921 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 19,210 | 25,336 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total costs and expenses | 260,145 | 229,422 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other operating loss | (2) | (155) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income | 24,057 | 23,748 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity in earnings of WTLPG | 1,595 | 905 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | (12,685) | (10,920) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other, net | 0 | 30 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other expense | (11,090) | (9,985) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income before taxes | 12,967 | 13,763 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | (149) | (180) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 12,818 | 13,583 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less general partner's interest in net income | (256) | (272) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less income allocable to unvested restricted units | (8) | (35) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Limited partners' interest in net income | $ 12,554 | $ 13,276 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income per unit attributable to limited partners - basic (USD per share) | $ 0.33 | $ 0.36 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income per unit attributable to limited partners - diluted (USD per share) | $ 0.32 | $ 0.36 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average limited partner units - basic (in shares) | 38,621,375 | 37,321,263 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average limited partner units - diluted (in shares) | 38,629,627 | 37,367,384 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS - Related Party Transactions - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Revenues: | ||
Terminalling and storage | $ 20,025 | $ 19,704 |
Marine transportation | 3,613 | 4,325 |
Natural gas services | 0 | 112 |
Product Sales | 642 | 1,430 |
Cost of products sold: (excluding depreciation and amortization) | ||
Natural gas services | 4,318 | 8,894 |
Sulfur services | 4,526 | 3,675 |
Terminalling and storage | 6,558 | 5,067 |
Expenses: | ||
Operating expenses | 13,384 | 16,376 |
Selling, general and administrative | $ 7,721 | $ 7,568 |
Nature of Operations and Basis of Presentation |
3 Months Ended |
---|---|
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Nature of Operations and Basis of Presentation | NATURE OF OPERATIONS AND BASIS OF PRESENTATION Martin Midstream Partners L.P. (the "Partnership") is a publicly traded limited partnership with a diverse set of operations focused primarily in the United States ("U.S.") Gulf Coast region. Its four primary business lines include: natural gas services, including liquids transportation and distribution services and natural gas storage; terminalling and storage services for petroleum products and by-products including the refining of naphthenic crude oil, blending and packaging of finished lubricants; sulfur and sulfur-based products processing, manufacturing, marketing and distribution; and marine transportation services for petroleum products and by-products. The Partnership’s unaudited consolidated and condensed financial statements have been prepared in accordance with the requirements of Form 10-Q and U.S. Generally Accepted Accounting Principles ("U.S. GAAP") for interim financial reporting. Accordingly, these financial statements have been condensed and do not include all of the information and footnotes required by U.S. GAAP for annual audited financial statements of the type contained in the Partnership’s annual reports on Form 10-K. In the opinion of the management of the Partnership’s general partner, all adjustments and elimination of significant intercompany balances necessary for a fair presentation of the Partnership’s financial position, results of operations, and cash flows for the periods shown have been made. All such adjustments are of a normal recurring nature. Results for such interim periods are not necessarily indicative of the results of operations for the full year. These financial statements should be read in conjunction with the Partnership’s audited consolidated financial statements and notes thereto included in the Partnership’s annual report on Form 10-K for the year ended December 31, 2017, filed with the Securities and Exchange Commission (the "SEC") on February 16, 2018, as amended by Amendment No. 1 on Form 10-K/A for the year ended December 31, 2017 filed on March 29, 2018. |
New Accounting Pronouncements |
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Mar. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | NEW ACCOUNTING PRONOUNCEMENTS In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU replaced most existing revenue recognition guidance in U.S. GAAP. The new standard is effective for the Partnership on January 1, 2018. The standard permits the use of either the retrospective or cumulative effect transition method. The Partnership adopted the new standard utilizing the cumulative effect method which will result in the cumulative effect of the adoption being recorded as of January 1, 2018. The Partnership adopted ASU 2014-09 on January 1, 2018 and did not identify any significant changes in the timing of revenue recognition when considering the amended accounting guidance. Additional disclosures related to revenue recognition appear "Note 5. Revenue." |
Acquisitions |
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Business Combinations [Abstract] | |||||||||||||||||||||||||
Acquisitions | ACQUISITIONS Acquisition of Terminalling Assets. On February 22, 2017, the Partnership acquired 100% of the membership interests of MEH South Texas Terminals LLC ("MEH"), a subsidiary of Martin Resource Management, for a purchase price of $27,420 (the "Hondo Acquisition"), which was funded with borrowings under the Partnership's revolving credit facility. At the date of acquisition, MEH was in the process of constructing an asphalt terminal facility in Hondo, Texas (the "Hondo Terminal"), to serve the asphalt market in San Antonio, Texas and surrounding areas. This acquisition is considered a transfer of net assets between entities under common control. The acquisition of these assets was recorded at the historical carrying value of the assets at the acquisition date. The excess of the purchase price over the carrying value of the assets of $7,887 was recorded as an adjustment to "Partners' capital" during the three months ended March 31, 2017. During 2018, the Partnership paid an additional $26 related to a purchase price true-up, which was recorded as a further adjustment to "Partners' capital" for the three months ended March 31, 2018.
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Divestitures, Asset Impairments, and Discontinued Operations |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Divestitures, Asset Impairments, and Discontinued Operations | DIVESTITURES, ASSET IMPAIRMENTS, AND DISCONTINUED OPERATIONS Long-Lived Assets Held for Sale At March 31, 2018 and December 31, 2017, certain terminalling and storage and marine transportation assets met the criteria to be classified as held for sale in accordance with ASC 360-10 and are presented at the lower of the assets' carrying amount or fair value less cost to sell by segment in current assets as follows:
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Revenue |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | REVENUE The following table disaggregates our revenue by major source:
Revenue is measured based on a consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties where the Partnership is acting as an agent. The Partnership recognizes revenue when the Partnership satisfies a performance obligation, which typically occurs when the Partnership transfers control over a product to a customer or as the Partnership delivers a service. The following is a description of the principal activities - separated by reportable segments - from which the Partnership generates revenue. Terminalling and Storage Segment Revenue is recognized for storage contracts based on the contracted monthly tank fixed fee. For throughput contracts, revenue is recognized based on the volume moved through the Partnership’s terminals at the contracted rate. For the Partnership’s tolling agreement, revenue is recognized based on the contracted monthly reservation fee and throughput volumes moved through the facility. When lubricants and drilling fluids are sold by truck or rail, revenue is recognized when title is transfered, which is either upon delivering product to the customer or when the product leaves the Partnership's facility, depending on the specific terms of the contract. Delivery of product is invoiced as the transaction occurs and is generally paid within a month. Natural Gas Services Segment Natural Gas Liquids ("NGL") distribution revenue is recognized when product is delivered by truck, rail, or pipeline to the Partnership's NGL customers. Revenue is recognized on title transfer of the product to the customer. Delivery of product is invoiced as the transaction occurs and are generally paid within a month. Natural gas storage revenue is recognized when the service is provided to the customer. The performance of the service is invoiced as the transaction occurs and is generally paid within a month. Sulfur Services Segment Revenue from sulfur product sales is recognized when the customer takes title to the product. Delivery of product is invoiced as the transaction occurs and are generally paid within a month. Revenue from sulfur services is recognized as services are performed during each monthly period. The performance of the service is invoiced as the transaction occurs and is generally paid within a month. Marine Transportation Segment Revenue is recognized for time charters based on a per day rate. For contracted trips, revenue is recognized upon completion of the particular trip. The performance of the service is invoiced as the transaction occurs and is generally paid within a month. The table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied at the end of the reporting period. The Partnership applies the practical expedient in ASC 606-10-50-14(a) and does not disclose information about remaining performance obligations that have original expected durations of one year or less.
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Inventories |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | INVENTORIES Components of inventories at March 31, 2018 and December 31, 2017 were as follows:
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Investment in West Texas LPG Pipeline L.P. |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in West Texas LPG Pipeline L.P. | INVESTMENT IN WEST TEXAS LPG PIPELINE L.P. The Partnership owns a 19.8% limited partnership and 0.2% general partnership interest in West Texas LPG Pipeline L.P. ("WTLPG"). A wholly-owned subsidiary of ONEOK, Inc. is the operator of the assets. WTLPG owns an approximate 2,300 mile common-carrier pipeline system that primarily transports NGLs from New Mexico and Texas to Mont Belvieu, Texas for fractionation. The Partnership recognizes its 20% interest in WTLPG as "Investment in WTLPG" on its Consolidated and Condensed Balance Sheets. The Partnership accounts for its ownership interest in WTLPG under the equity method of accounting.
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Long-Term Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | LONG-TERM DEBT At March 31, 2018 and December 31, 2017, long-term debt consisted of the following:
1 Interest rate fluctuates based on the LIBOR rate plus an applicable margin set on the date of each advance. The margin above LIBOR is set every three months. Indebtedness under the credit facility bears interest at LIBOR plus an applicable margin or the base prime rate plus an applicable margin. All amounts outstanding at March 31, 2018 and December 31, 2017 were at LIBOR plus an applicable margin. The applicable margin for revolving loans that are LIBOR loans ranges from 2.00% to 3.00% and the applicable margin for revolving loans that are base prime rate loans ranges from 1.00% to 2.00%. The applicable margin for existing LIBOR borrowings at March 31, 2018 is 3.00%. The credit facility contains various covenants which limit the Partnership’s ability to make certain investments and acquisitions; enter into certain agreements; incur indebtedness; sell assets; and make certain amendments to the Partnership's omnibus agreement with Martin Resource Management (the "Omnibus Agreement"). The Partnership is permitted to make quarterly distributions so long as no event of default exists. 2 On February 21, 2018, the Partnership amended its revolving credit facility to, among other things, (i) create an inventory financing sublimit tranche, which is a part of and not in addition to the already existing commitments under the revolving credit facility, under which availability is subject to a borrowing base calculated by reference to eligible petroleum products inventory, (ii) exclude the amount of loans under the inventory financing sublimit tranche from total outstanding indebtedness for purposes of determining leverage ratio covenants under the revolving credit facility, (iii) increase the maximum permitted leverage ratio (as defined in the credit agreement, being generally computed as the ratio of total funded debt to consolidated earnings before interest, taxes, depreciation, amortization and certain other non-cash charges) from 5.25 to 1.00, with a temporary springing provision to 5.50 to 1.00 under certain scenarios, to 5.75 to 1.00 for the first and second quarters of 2018, 5.50 to 1.00 for the next three quarters and 5.25 to 1.00, with the temporary springing provision to 5.50 to 1.00 going back into effect, thereafter and (iv) decrease the maximum permitted senior leverage ratio (as defined in the credit agreement, being generally computed as the ratio of total secured funded debt to consolidated earnings before interest, taxes, depreciation, amortization and certain other non-cash charges) from 3.50 to 1.00 to 3.25 to 1.00. The maximum amount of the inventory financing sublimit tranche is $10,000 during the period between March 1 and June 30 of each year, and $75,000 at all other times during each year. 3 The Partnership is in compliance with all debt covenants as of March 31, 2018 and December 31, 2017, respectively. 4 The 2021 indenture restricts the Partnership’s ability to sell assets; pay distributions or repurchase units or redeem or repurchase subordinated debt; make investments; incur or guarantee additional indebtedness or issue preferred units; and consolidate, merge or transfer all or substantially all of its assets. |
Supplemental Balance Sheet Information |
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Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Balance Sheet Information | SUPPLEMENTAL BALANCE SHEET INFORMATION Components of "Other assets, net" were as follows:
Accumulated amortization of intangible assets was $41,984 and $39,462 at March 31, 2018 and December 31, 2017, respectively. Components of "Other accrued liabilities" were as follows:
The schedule below summarizes the changes in our asset retirement obligations:
1Several factors are considered in the annual review process, including inflation rates, current estimates for removal cost, discount rates, and the estimated remaining useful life of the assets. The 2018 revisions reflect changes in removal cost estimates and the estimated remaining useful life of assets. 2The current portion of asset retirement obligations is included in "Other current liabilities" on the Partnership's Consolidated and Condensed Balance Sheets. |
Derivative Instruments and Hedging Activities |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Partnership’s revenues and cost of products sold are materially impacted by changes in NGL prices. Additionally, the Partnership's results of operations are materially impacted by changes in interest rates. In an effort to manage its exposure to these risks, the Partnership periodically enters into various derivative instruments, including commodity and interest rate hedges. All derivatives and hedging instruments are included on the balance sheet as an asset or a liability measured at fair value and changes in fair value are recognized currently in earnings. All of the Partnership's derivatives are non-hedge derivatives and therefore all changes in fair values are recognized as gains and losses in the earnings of the periods in which they occur. (a) Commodity Derivative Instruments The Partnership from time to time has used derivatives to manage the risk of commodity price fluctuation. Commodity risk is the adverse effect on the value of a liability or future purchase that results from a change in commodity price. The Partnership has established a hedging policy and monitors and manages the commodity market risk associated with potential commodity risk exposure. In addition, the Partnership has focused on utilizing counterparties for these transactions whose financial condition is appropriate for the credit risk involved in each specific transaction. The Partnership has entered into hedging transactions as of March 31, 2018 to protect a portion of its commodity price risk exposure. These hedging arrangements are in the form of swaps for NGLs. The Partnership has instruments totaling a gross notional quantity of 50 barrels settling during the period from May 1, 2018 through June 30, 2018. At December 31, 2017, the Partnership had instruments totaling a gross notional quantity of 145 barrels settling during the period from January 31, 2018 through February 28, 2018. These instruments settle against the applicable pricing source for each grade and location. (b) Interest Rate Derivative Instruments The Partnership is exposed to market risks associated with interest rates. Market risk is the adverse effect on the value of a financial instrument that results from a change in interest rates. We minimize this market risk by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken. From time to time, the Partnership enters into interest rate swaps to manage interest rate risk associated with the Partnership’s variable rate credit facility and its fixed rate senior unsecured notes. At March 31, 2018 and 2017, the Partnership did not have any outstanding interest rate derivative instruments. For information regarding gains and losses on interest rate derivative instruments, see "Tabular Presentation of Gains and Losses on Derivative Instruments" below. (c) Tabular Presentation of Gains and Losses on Derivative Instruments The following table summarizes the fair value and classification of the Partnership’s derivative instruments in its Consolidated and Condensed Balance Sheets:
Effect of Derivative Instruments on the Consolidated and Condensed Statements of Operations For the Three Months Ended March 31, 2018 and 2017
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Partners' Capital |
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Partners' Capital | PARTNERS' CAPITAL As of March 31, 2018, Partners’ capital consisted of 39,052,237 common limited partner units, representing a 98% partnership interest, and a 2% general partner interest. Martin Resource Management, through subsidiaries, owns 6,264,532 of the Partnership's common limited partner units representing approximately 16.0% of the Partnership's outstanding common limited partner units. Martin Midstream GP LLC ("MMGP"), the Partnership's general partner, owns the 2% general partnership interest. Martin Resource Management controls the Partnership's general partner, by virtue of its 51% voting interest in MMGP Holdings, LLC ("Holdings"), the sole member of the Partnership's general partner. The partnership agreement of the Partnership (the "Partnership Agreement") contains specific provisions for the allocation of net income and losses to each of the partners for purposes of maintaining their respective partner capital accounts. Issuance of Common Units On February 22, 2017, the Partnership completed a public offering of 2,990,000 common units at a price of $18.00 per common unit, before the payment of underwriters' discounts, commissions and offering expenses (per unit value is in dollars, not thousands). Total proceeds from the sale of the 2,990,000 common units, net of underwriters' discounts, commissions and offering expenses, were $51,188. Additionally, the Partnership's general partner contributed $1,098 in cash to the Partnership in conjunction with the issuance in order to maintain its 2.0% general partner interest in the Partnership. All of the net proceeds were used to pay down outstanding amounts under the Partnership's revolving credit facility. Incentive Distribution Rights MMGP holds a 2% general partner interest and certain incentive distribution rights ("IDRs") in the Partnership. IDRs are a separate class of non-voting limited partner interest that may be transferred or sold by the general partner under the terms of the Partnership Agreement, and represent the right to receive an increasing percentage of cash distributions after the minimum quarterly distribution and any cumulative arrearages on common units once certain target distribution levels have been achieved. The Partnership is required to distribute all of its available cash from operating surplus, as defined in the Partnership Agreement. The general partner was allocated no incentive distributions during the three months ended March 31, 2018 and 2017. The target distribution levels entitle the general partner to receive 2% of quarterly cash distributions from the minimum of $0.50 per unit up to $0.55 per unit, 15% of quarterly cash distributions in excess of $0.55 per unit until all unitholders have received $0.625 per unit, 25% of quarterly cash distributions in excess of $0.625 per unit until all unitholders have received $0.75 per unit and 50% of quarterly cash distributions in excess of $0.75 per unit. Distributions of Available Cash The Partnership distributes all of its available cash (as defined in the Partnership Agreement) within 45 days after the end of each quarter to unitholders of record and to the general partner. Available cash is generally defined as all cash and cash equivalents of the Partnership on hand at the end of each quarter less the amount of cash reserves its general partner determines in its reasonable discretion is necessary or appropriate to: (i) provide for the proper conduct of the Partnership’s business; (ii) comply with applicable law, any debt instruments or other agreements; or (iii) provide funds for distributions to unitholders and the general partner for any one or more of the next four quarters, plus all cash on the date of determination of available cash for the quarter resulting from working capital borrowings made after the end of the quarter. Net Income per Unit The Partnership follows the provisions of the FASB ASC 260-10 related to earnings per share, which addresses the application of the two-class method in determining income per unit for master limited partnerships having multiple classes of securities that may participate in partnership distributions accounted for as equity distributions. Undistributed earnings are allocated to the general partner and limited partners utilizing the contractual terms of the Partnership Agreement. Distributions to the general partner pursuant to the IDRs are limited to available cash that will be distributed as defined in the Partnership Agreement. Accordingly, the Partnership does not allocate undistributed earnings to the general partner for the IDRs because the general partner's share of available cash is the maximum amount that the general partner would be contractually entitled to receive if all earnings for the period were distributed. When current period distributions are in excess of earnings, the excess distributions for the period are to be allocated to the general partner and limited partners based on their respective sharing of income and losses specified in the Partnership Agreement. Additionally, as required under FASB ASC 260-10-45-61A, unvested share-based payments that entitle employees to receive non-forfeitable distributions are considered participating securities, as defined in FASB ASC 260-10-20, for earnings per unit calculations. For purposes of computing diluted net income per unit, the Partnership uses the more dilutive of the two-class and if-converted methods. Under the if-converted method, the weighted-average number of subordinated units outstanding for the period is added to the weighted-average number of common units outstanding for purposes of computing basic net income per unit and the resulting amount is compared to the diluted net income per unit computed using the two-class method. The following is a reconciliation of net income allocated to the general partner and limited partners for purposes of calculating net income attributable to limited partners per unit:
The following are the unit amounts used to compute the basic and diluted earnings per limited partner unit for the periods presented:
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Unit Based Awards |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unit Based Awards | UNIT BASED AWARDS The Partnership recognizes compensation cost related to unit-based awards to employees in its consolidated financial statements in accordance with certain provisions of ASC 718. The Partnership recognizes compensation costs related to unit-based awards to directors under certain provisions of ASC 505-50-55 related to equity-based payments to non-employees. Amounts recognized in selling, general, and administrative expense in the consolidated and condensed financial statements with respect to these plans are as follows:
All of the Partnership's outstanding awards at March 31, 2018 met the criteria to be treated under equity classification. Long-Term Incentive Plans The Partnership's general partner has a long-term incentive plan for employees and directors of the general partner and its affiliates who perform services for the Partnership. On May 26, 2017, the unitholders of the Partnership approved the Martin Midstream Partners L.P. 2017 Restricted Unit Plan (the "2017 LTIP"). The plan currently permits the grant of awards covering an aggregate of 3,000,000 common units, all of which can be awarded in the form of restricted units. The plan is administered by the compensation committee of the general partner’s board of directors (the "Compensation Committee"). A restricted unit is a unit that is granted to grantees with certain vesting restrictions, which may be time-based and/or performance-based. Once these restrictions lapse, the grantee is entitled to full ownership of the unit without restrictions. The Compensation Committee may determine to make grants under the plan containing such terms as the Compensation Committee shall determine under the plan. With respect to time-based restricted units ("TBRU's", the Compensation Committee will determine the time period over which restricted units granted to employees and directors will vest. The Compensation Committee may also award a percentage of restricted units with vesting requirements based upon the achievement of specified pre-established performance targets ("Performance Based Restricted Units" or "PBRU's"). The performance targets may include, but are not limited to, the following: revenue and income measures, cash flow measures, net income before interest expense and income tax expense ("EBIT"), net income before interest expense, income tax expense, and depreciation and amortization ("EBITDA"), distribution coverage metrics, expense measures, liquidity measures, market measures, corporate sustainability metrics, and other measures related to acquisitions, dispositions, operational objectives and succession planning objectives. PBRU's are earned only upon our achievement of an objective performance measure for the performance period. PBRU's which vest are payable in common units. Unvested units granted under the 2017 LTIP may or may not participate in cash distributions depending on the terms of each individual award agreement. The restricted units issued to directors generally vest in equal annual installments over a four-year period. Restricted units issued to employees generally vest in equal annual installments over three years of service. On February 20, 2018, the Partnership issued 4,650 TBRU's to each of the Partnership's three independent directors under the 2017 LTIP. These restricted common units vest in equal installments of 1,550 units on January 24, 2019, 2020, 2021, and 2022. On March 1, 2018, the Partnership issued 301,550 TBRU's and 317,925 PBRU's to certain employees of Martin Resource Management. The TBRU's vest in equal installments over a three-year service period. The PBRU's will vest at the conclusion of a three-performance period based on certain performance targets. In addition, the PBRU's awarded on March 1, 2018 that are achieved will only vest if the grantee is employed by Martin Resource Management on March 31, 2021. The restricted units are valued at their fair value at the date of grant which is equal to the market value of common units on such date. A summary of the restricted unit activity for the three months ended March 31, 2018 is provided below:
A summary of the restricted units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) during the three months ended March 31, 2018 and 2017 is provided below:
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Related Party Transactions |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions | RELATED PARTY TRANSACTIONS As of March 31, 2018, Martin Resource Management owns 6,264,532 of the Partnership’s common units representing approximately 16.0% of the Partnership’s outstanding limited partner units. Martin Resource Management controls the Partnership's general partner by virtue of its 51% voting interest in Holdings, the sole member of the Partnership's general partner. The Partnership’s general partner, MMGP, owns a 2% general partner interest in the Partnership and the Partnership’s IDRs. The Partnership’s general partner’s ability, as general partner, to manage and operate the Partnership, and Martin Resource Management’s ownership as of March 31, 2018, of approximately 16.0% of the Partnership’s outstanding limited partner units, effectively gives Martin Resource Management the ability to veto some of the Partnership’s actions and to control the Partnership’s management. The following is a description of the Partnership’s material related party agreements and transactions: Omnibus Agreement Omnibus Agreement. The Partnership and its general partner are parties to the Omnibus Agreement dated November 1, 2002, with Martin Resource Management that governs, among other things, potential competition and indemnification obligations among the parties to the agreement, related party transactions, the provision of general administration and support services by Martin Resource Management and the Partnership’s use of certain Martin Resource Management trade names and trademarks. The Omnibus Agreement was amended on November 25, 2009, to include processing crude oil into finished products including naphthenic lubricants, distillates, asphalt and other intermediate cuts. The Omnibus Agreement was amended further on October 1, 2012, to permit the Partnership to provide certain lubricant packaging products and services to Martin Resource Management. Non-Competition Provisions. Martin Resource Management has agreed for so long as it controls the general partner of the Partnership, not to engage in the business of:
•providing marine transportation of petroleum products and by-products; •distributing NGLs; and •manufacturing and selling sulfur-based fertilizer products and other sulfur-related products. This restriction does not apply to:
Services. Under the Omnibus Agreement, Martin Resource Management provides the Partnership with corporate staff, support services, and administrative services necessary to operate the Partnership’s business. The Omnibus Agreement requires the Partnership to reimburse Martin Resource Management for all direct expenses it incurs or payments it makes on the Partnership’s behalf or in connection with the operation of the Partnership’s business. There is no monetary limitation on the amount the Partnership is required to reimburse Martin Resource Management for direct expenses. In addition to the direct expenses, under the Omnibus Agreement, the Partnership is required to reimburse Martin Resource Management for indirect general and administrative and corporate overhead expenses. Effective January 1, 2018, through December 31, 2018, the Conflicts Committee approved an annual reimbursement amount for indirect expenses of $16,416. The Partnership reimbursed Martin Resource Management for $4,104 and $4,104 of indirect expenses for the three months ended March 31, 2018 and 2017, respectively. The Conflicts Committee will review and approve future adjustments in the reimbursement amount for indirect expenses, if any, annually. These indirect expenses are intended to cover the centralized corporate functions Martin Resource Management provides for the Partnership, such as accounting, treasury, clerical, engineering, legal, billing, information technology, administration of insurance, general office expenses and employee benefit plans and other general corporate overhead functions the Partnership shares with Martin Resource Management retained businesses. The provisions of the Omnibus Agreement regarding Martin Resource Management’s services will terminate if Martin Resource Management ceases to control the general partner of the Partnership. Related Party Transactions. The Omnibus Agreement prohibits the Partnership from entering into any material agreement with Martin Resource Management without the prior approval of the Conflicts Committee. For purposes of the Omnibus Agreement, the term "material agreements" means any agreement between the Partnership and Martin Resource Management that requires aggregate annual payments in excess of the then-applicable agreed upon reimbursable amount of indirect general and administrative expenses. Please read "Services" above. License Provisions. Under the Omnibus Agreement, Martin Resource Management has granted the Partnership a nontransferable, nonexclusive, royalty-free right and license to use certain of its trade names and marks, as well as the trade names and marks used by some of its affiliates. Amendment and Termination. The Omnibus Agreement may be amended by written agreement of the parties; provided, however, that it may not be amended without the approval of the Conflicts Committee if such amendment would adversely affect the unitholders. The Omnibus Agreement was first amended on November 25, 2009, to permit the Partnership to provide refining services to Martin Resource Management. The Omnibus Agreement was amended further on October 1, 2012, to permit the Partnership to provide certain lubricant packaging products and services to Martin Resource Management. Such amendments were approved by the Conflicts Committee. The Omnibus Agreement, other than the indemnification provisions and the provisions limiting the amount for which the Partnership will reimburse Martin Resource Management for general and administrative services performed on its behalf, will terminate if the Partnership is no longer an affiliate of Martin Resource Management. Motor Carrier Agreement Motor Carrier Agreement. The Partnership is a party to a motor carrier agreement effective January 1, 2006, as amended, with Martin Transport, Inc., a wholly owned subsidiary of Martin Resource Management through which Martin Transport, Inc. operates its land transportation operations. Under the agreement, Martin Transport, Inc. agreed to transport the Partnership's NGLs as well as other liquid products. Term and Pricing. The agreement has an initial term that expired in December 2007 but automatically renews for consecutive one year periods unless either party terminates the agreement by giving written notice to the other party at least 30 days prior to the expiration of the then-applicable term. The Partnership has the right to terminate this agreement at any time by providing 90 days prior notice. These rates are subject to any adjustments which are mutually agreed upon or in accordance with a price index. Additionally, during the term of the agreement, shipping charges are also subject to fuel surcharges determined on a weekly basis in accordance with the U.S. Department of Energy’s national diesel price list. Indemnification. Martin Transport, Inc. has indemnified the Partnership against all claims arising out of the negligence or willful misconduct of Martin Transport, Inc. and its officers, employees, agents, representatives and subcontractors. The Partnership has indemnified Martin Transport, Inc. against all claims arising out of the negligence or willful misconduct of the Partnership and its officers, employees, agents, representatives and subcontractors. In the event a claim is the result of the joint negligence or misconduct of Martin Transport, Inc. and the Partnership, indemnification obligations will be shared in proportion to each party’s allocable share of such joint negligence or misconduct. Marine Agreements Marine Transportation Agreement. The Partnership is a party to a marine transportation agreement effective January 1, 2006, as amended, under which the Partnership provides marine transportation services to Martin Resource Management on a spot-contract basis at applicable market rates. Effective each January 1, this agreement automatically renews for consecutive one year periods unless either party terminates the agreement by giving written notice to the other party at least 60 days prior to the expiration of the then applicable term. The fees the Partnership charges Martin Resource Management are based on applicable market rates. Marine Fuel. The Partnership is a party to an agreement with Martin Resource Management dated November 1, 2002, under which Martin Resource Management provides the Partnership with marine fuel from its locations in the Gulf of Mexico at a fixed rate in excess of the Platt’s U.S. Gulf Coast Index for #2 Fuel Oil. Under this agreement, the Partnership agreed to purchase all of its marine fuel requirements that occur in the areas serviced by Martin Resource Management. Terminal Services Agreements Diesel Fuel Terminal Services Agreement. Effective January 1, 2016, the Partnership entered into a second amended and restated terminalling services agreement under which the Partnership provides terminal services to Martin Resource Management for marine fuel distribution. At such time, the per gallon throughput fee the Partnership charged under this agreement was increased when compared to the previous agreement and may be adjusted annually based on a price index. This agreement was further amended on January 1, 2017 and October 1, 2017 to modify its minimum throughput requirements and throughput fees. This agreement, as amended, continues until September 30, 2018 and thereafter on a month to month basis until terminated by either party by giving 60 days’ written notice. Miscellaneous Terminal Services Agreements. The Partnership is currently party to several terminal services agreements and from time to time the Partnership may enter into other terminal service agreements for the purpose of providing terminal services to related parties. Individually, each of these agreements is immaterial but when considered in the aggregate they could be deemed material. These agreements are throughput based with a minimum volume commitment. Generally, the fees due under these agreements are adjusted annually based on a price index. Other Agreements Cross Tolling Agreement. The Partnership is a party to an amended and restated tolling agreement with Cross Oil Refining and Marketing, Inc. ("Cross") dated October 28, 2014, under which the Partnership processes crude oil into finished products, including naphthenic lubricants, distillates, asphalt and other intermediate cuts for Cross. The tolling agreement expires November 25, 2031. Under this tolling agreement, Cross agreed to process a minimum of 6,500 barrels per day of crude oil at the facility at a fixed price per barrel. Any additional barrels are processed at a modified price per barrel. In addition, Cross agreed to pay a monthly reservation fee and a periodic fuel surcharge fee based on certain parameters specified in the tolling agreement. All of these fees (other than the fuel surcharge) are subject to escalation annually based upon the greater of 3% or the increase in the Consumer Price Index for a specified annual period. In addition, on the third, sixth and ninth anniversaries of the agreement, the parties can negotiate an upward or downward adjustment in the fees subject to their mutual agreement. Sulfuric Acid Sales Agency Agreement. The Partnership is party to a third amended and restated sulfuric acid sales agency agreement dated August 2, 2017 but effective October 1, 2017, under which a successor in interest to the agreement from Martin Resource Management, Saconix LLC ("Saconix"), a limited liability company in which Martin Resource Management has a minority equity interest, purchases and markets the sulfuric acid produced by the Partnership’s sulfuric acid production plant at Plainview, Texas, that is not consumed by the Partnership’s internal operations. This agreement, as amended, will remain in place until September 30, 2020 and shall automatically renew year to year thereafter until either party provides 90 days’ written notice of termination prior to the expiration of the then existing term. Under this agreement, the Partnership sells all of its excess sulfuric acid to Saconix, who then markets and sells such acid to third-parties. The Partnership shares in the profit of such sales. Other Miscellaneous Agreements. From time to time the Partnership enters into other miscellaneous agreements with Martin Resource Management for the provision of other services or the purchase of other goods. The tables below summarize the related party transactions that are included in the related financial statement captions on the face of the Partnership’s Consolidated and Condensed Statements of Operations. The revenues, costs and expenses reflected in these tables are tabulations of the related party transactions that are recorded in the corresponding captions of the consolidated and condensed financial statements and do not reflect a statement of profits and losses for related party transactions. The impact of related party revenues from sales of products and services is reflected in the consolidated and condensed financial statements as follows:
The impact of related party cost of products sold is reflected in the consolidated and condensed financial statements as follows:
The impact of related party operating expenses is reflected in the consolidated and condensed financial statements as follows:
The impact of related party selling, general and administrative expenses is reflected in the consolidated and condensed financial statements as follows:
Other Related Party Transactions |
Business Segments |
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Business Segments | BUSINESS SEGMENTS The Partnership has four reportable segments: natural gas services, terminalling and storage, sulfur services and marine transportation. The Partnership’s reportable segments are strategic business units that offer different products and services. The operating income of these segments is reviewed by the chief operating decision maker to assess performance and make business decisions. The accounting policies of the operating segments are the same as those described in Note 2 in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2017, filed with the SEC on February 16, 2018, as amended, by Amendment No. 1 on Form 10-K/A filed on March 29, 2018. The Partnership evaluates the performance of its reportable segments based on operating income. There is no allocation of administrative expenses or interest expense.
The Partnership's assets by reportable segment as of March 31, 2018 and December 31, 2017, are as follows:
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Commitments and Contingencies |
3 Months Ended |
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Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITTMENTS AND CONTINGENCIES Contingencies From time to time, the Partnership is subject to various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Partnership. Pursuant to a Purchase Price Reimbursement Agreement between the Partnership and Martin Resource Management related to the Partnership’s acquisition of the Redbird Gas Storage LLC ("Redbird") Class A interests on October 2, 2012, beginning in the second quarter of 2015, Martin Resource Management has reimbursed the Partnership $750 per quarter for four consecutive quarters as a reduction in the purchase price of the Redbird Class A interests. These payments were the result of Cardinal Gas Storage Partners LLC ("Cardinal") not achieving certain financial targets set forth in the Purchase Price Reimbursement Agreement. These payments were considered to be a reduction of the excess of the purchase price over the carrying value of the assets transferred to the Partnership from Martin Resource Management and were recorded as an adjustment to "Partners' capital" in each quarter in which the payments were made. The agreement further provided for purchase price reimbursements of up to $4,500 in 2016 in the event certain financial conditions were not met. For the three months ended March 31, 2017, the Partnership received $1,125, related to the Purchase Price Reimbursement Agreement. The amount received in the first quarter of 2017 represented the final payment under the Purchase Price Reimbursement Agreement. Certain shippers filed complaints with the Railroad Commission of Texas ("RRC") challenging the increased rates WTLPG implemented effective July 1, 2015. The complainants requested that the rate increase be suspended until the RRC has determined appropriate new rates. On March 8, 2016, the RRC issued an order directing that WTLPG’s rates "in effect prior to July 1, 2015, are the lawful rates for the duration of this docket unless changed by Commission order." A hearing on the merits was held in front of a hearings examiner during the week of March 27, 2017. The hearings examiner issued a Proposal for Decision on September 29, 2017. On December 5, 2017, this matter was brought before the RRC. After brief discussion, the RRC determined that more time was needed to review the proposal for decision and placed the matter on the agenda for the RRC’s January 23, 2018 meeting. At that meeting, the RRC voted to remand the case to the hearings examiner for the limited purpose of admitting and considering additional relevant evidence on competition. The hearings examiner has scheduled the remand hearing for September 26-28, 2018. In 2015, the Partnership was named as a defendant in the cause J. A. Davis Properties, LLC v. Martin Operating Partnership L.P., in the 38th Judicial District Court, Cameron Parish, Louisiana. The plaintiff alleged that the Partnership breached a lease agreement by failing to perform work to the plaintiff's property as required under the lease agreement. The plaintiff originally sought to evict the Partnership from the leased property and to recover damages. Prior to trial, this matter was settled for a confidential amount in September of 2017. The Partnership's financial statements reflect the terms of the settlement and all amounts have been accrued as asset retirement obligations. On December 31, 2015, the Partnership received a demand from a customer in its lubricants packaging business for defense and indemnity in connection with lawsuits filed against it in various United States District Courts, which generally allege that the customer engaged in unlawful and deceptive business practices in connection with its marketing and advertising of its private label motor oil. The Partnership disputes that it has any obligation to defend or indemnify the customer for its conduct. Accordingly, on January 7, 2016, the Partnership filed a Complaint for Declaratory Judgment in the Chancery Court of Davidson County, Tennessee requesting a judicial determination that the Partnership does not owe the customer the demanded defense and indemnity obligations. The lawsuits against the customer have been transferred to the United States District Court for the Western District of Missouri for consolidated pretrial proceedings. On March 1, 2017, at the request of the parties, the Chancery Court of Davidson County, Tennessee administratively closed the Partnership's lawsuit pending rulings in the United States District Court for the Western District of Missouri. In the event that either party moves the Chancery Court of Davidson County, Tennessee to reopen the case, we expect the Court would grant such motion and reopen the case. If the case is reopened, we are currently unable to determine the exposure we may have in this matter, if any. Commitments |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS The Partnership uses a valuation framework based upon inputs that market participants use in pricing certain assets and liabilities. These inputs are classified into two categories: observable inputs and unobservable inputs. Observable inputs represent market data obtained from independent sources. Unobservable inputs represent the Partnership's own market assumptions. Unobservable inputs are used only if observable inputs are unavailable or not reasonably available without undue cost and effort. The two types of inputs are further prioritized into the following hierarchy: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that reflect the entity's own assumptions and are not corroborated by market data. Assets and liabilities measured at fair value on a recurring basis are summarized below:
The Partnership is required to disclose estimated fair values for its financial instruments. Fair value estimates are set forth below for these financial instruments. The following methods and assumptions were used to estimate the fair value of each class of financial instrument:
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Condensed Consolidated Financial Information |
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Mar. 31, 2018 | |
Consolidating Financial Statements [Abstract] | |
Condensed Consolidated Financial Information | CONDENSED CONSOLIDATED FINANCIAL INFORMATION |
Subsequent Events |
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Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS |
New Accounting Pronouncements (Policies) |
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Mar. 31, 2018 | |||||
Accounting Changes and Error Corrections [Abstract] | |||||
New Accounting Pronouncements | NEW ACCOUNTING PRONOUNCEMENTS In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU replaced most existing revenue recognition guidance in U.S. GAAP. The new standard is effective for the Partnership on January 1, 2018. The standard permits the use of either the retrospective or cumulative effect transition method. The Partnership adopted the new standard utilizing the cumulative effect method which will result in the cumulative effect of the adoption being recorded as of January 1, 2018. The Partnership adopted ASU 2014-09 on January 1, 2018 and did not identify any significant changes in the timing of revenue recognition when considering the amended accounting guidance. Additional disclosures related to revenue recognition appear "Note 5. Revenue." |
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Fair Value Measurement | The Partnership uses a valuation framework based upon inputs that market participants use in pricing certain assets and liabilities. These inputs are classified into two categories: observable inputs and unobservable inputs. Observable inputs represent market data obtained from independent sources. Unobservable inputs represent the Partnership's own market assumptions. Unobservable inputs are used only if observable inputs are unavailable or not reasonably available without undue cost and effort. The two types of inputs are further prioritized into the following hierarchy: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that reflect the entity's own assumptions and are not corroborated by market data.
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Fair Value of Financial Instruments | The Partnership is required to disclose estimated fair values for its financial instruments. Fair value estimates are set forth below for these financial instruments. The following methods and assumptions were used to estimate the fair value of each class of financial instrument:
• Note receivable and long-term debt: The carrying amount of the revolving credit facility approximates fair value due to the debt having a variable interest rate and is in Level 2. The Partnership has not had any indicators which represent a change in the market spread associated with its variable interest rate debt. The estimated fair value of the senior unsecured notes is considered Level 1, as the fair value is based on quoted market prices in active markets.
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Acquisitions (Tables) |
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Business Combinations [Abstract] | |||||||||||||||||||||||||
Schedule of Business Acquisitions, by Acquisition |
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Divestitures, Asset Impairments, and Discontinued Operations (Tables) |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Long Lived Assets Held-for-sale | At March 31, 2018 and December 31, 2017, certain terminalling and storage and marine transportation assets met the criteria to be classified as held for sale in accordance with ASC 360-10 and are presented at the lower of the assets' carrying amount or fair value less cost to sell by segment in current assets as follows:
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Revenue (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following table disaggregates our revenue by major source:
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Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | The table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied at the end of the reporting period. The Partnership applies the practical expedient in ASC 606-10-50-14(a) and does not disclose information about remaining performance obligations that have original expected durations of one year or less.
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Inventories (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of inventory | Components of inventories at March 31, 2018 and December 31, 2017 were as follows:
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Investment in West Texas LPG Pipeline L.P. (Tables) |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Select Financial Information for Significant Unconsolidated Equity Method Investees | Selected financial information for WTLPG is as follows:
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Long-Term Debt (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-Term Debt | At March 31, 2018 and December 31, 2017, long-term debt consisted of the following:
1 Interest rate fluctuates based on the LIBOR rate plus an applicable margin set on the date of each advance. The margin above LIBOR is set every three months. Indebtedness under the credit facility bears interest at LIBOR plus an applicable margin or the base prime rate plus an applicable margin. All amounts outstanding at March 31, 2018 and December 31, 2017 were at LIBOR plus an applicable margin. The applicable margin for revolving loans that are LIBOR loans ranges from 2.00% to 3.00% and the applicable margin for revolving loans that are base prime rate loans ranges from 1.00% to 2.00%. The applicable margin for existing LIBOR borrowings at March 31, 2018 is 3.00%. The credit facility contains various covenants which limit the Partnership’s ability to make certain investments and acquisitions; enter into certain agreements; incur indebtedness; sell assets; and make certain amendments to the Partnership's omnibus agreement with Martin Resource Management (the "Omnibus Agreement"). The Partnership is permitted to make quarterly distributions so long as no event of default exists. 2 On February 21, 2018, the Partnership amended its revolving credit facility to, among other things, (i) create an inventory financing sublimit tranche, which is a part of and not in addition to the already existing commitments under the revolving credit facility, under which availability is subject to a borrowing base calculated by reference to eligible petroleum products inventory, (ii) exclude the amount of loans under the inventory financing sublimit tranche from total outstanding indebtedness for purposes of determining leverage ratio covenants under the revolving credit facility, (iii) increase the maximum permitted leverage ratio (as defined in the credit agreement, being generally computed as the ratio of total funded debt to consolidated earnings before interest, taxes, depreciation, amortization and certain other non-cash charges) from 5.25 to 1.00, with a temporary springing provision to 5.50 to 1.00 under certain scenarios, to 5.75 to 1.00 for the first and second quarters of 2018, 5.50 to 1.00 for the next three quarters and 5.25 to 1.00, with the temporary springing provision to 5.50 to 1.00 going back into effect, thereafter and (iv) decrease the maximum permitted senior leverage ratio (as defined in the credit agreement, being generally computed as the ratio of total secured funded debt to consolidated earnings before interest, taxes, depreciation, amortization and certain other non-cash charges) from 3.50 to 1.00 to 3.25 to 1.00. The maximum amount of the inventory financing sublimit tranche is $10,000 during the period between March 1 and June 30 of each year, and $75,000 at all other times during each year. 3 The Partnership is in compliance with all debt covenants as of March 31, 2018 and December 31, 2017, respectively. 4 The 2021 indenture restricts the Partnership’s ability to sell assets; pay distributions or repurchase units or redeem or repurchase subordinated debt; make investments; incur or guarantee additional indebtedness or issue preferred units; and consolidate, merge or transfer all or substantially all of its assets. |
Supplemental Balance Sheet Information (Tables) |
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Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Assets | Components of "Other assets, net" were as follows:
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Schedule of Other Accrued Liabilities | Components of "Other accrued liabilities" were as follows:
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Schedule of Asset Retirement Obligations | The schedule below summarizes the changes in our asset retirement obligations:
1Several factors are considered in the annual review process, including inflation rates, current estimates for removal cost, discount rates, and the estimated remaining useful life of the assets. The 2018 revisions reflect changes in removal cost estimates and the estimated remaining useful life of assets. 2The current portion of asset retirement obligations is included in "Other current liabilities" on the Partnership's Consolidated and Condensed Balance Sheets. |
Derivative Instruments and Hedging Activities (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of Derivative Instruments on the Consolidated Balance Sheets | The following table summarizes the fair value and classification of the Partnership’s derivative instruments in its Consolidated and Condensed Balance Sheets:
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Effect of Derivative Instruments on the Consolidated Statement of Operations | Effect of Derivative Instruments on the Consolidated and Condensed Statements of Operations For the Three Months Ended March 31, 2018 and 2017
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Partners' Capital (Tables) |
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Partners' Capital Notes [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Net Income to Partners Interest in Net Income | The following is a reconciliation of net income allocated to the general partner and limited partners for purposes of calculating net income attributable to limited partners per unit:
The following are the unit amounts used to compute the basic and diluted earnings per limited partner unit for the periods presented:
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Unit Based Awards (Tables) |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Compensation Costs Related to Unit Based Plan | Amounts recognized in selling, general, and administrative expense in the consolidated and condensed financial statements with respect to these plans are as follows:
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Summary of Restricted Unit Activity | A summary of the restricted unit activity for the three months ended March 31, 2018 is provided below:
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Summary of Aggregate Intrinsic Value and Fair Value of Units Vested | A summary of the restricted units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) during the three months ended March 31, 2018 and 2017 is provided below:
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Related Party Transactions (Tables) |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Impact of Related Party Transactions | The impact of related party revenues from sales of products and services is reflected in the consolidated and condensed financial statements as follows:
The impact of related party cost of products sold is reflected in the consolidated and condensed financial statements as follows:
The impact of related party operating expenses is reflected in the consolidated and condensed financial statements as follows:
The impact of related party selling, general and administrative expenses is reflected in the consolidated and condensed financial statements as follows:
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Business Segments (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting by Segment |
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Assets by Segment | The Partnership's assets by reportable segment as of March 31, 2018 and December 31, 2017, are as follows:
|
Fair Value Measurements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis |
Assets and liabilities measured at fair value on a recurring basis are summarized below:
|
Nature of Operations and Basis of Presentation (Details) |
3 Months Ended |
---|---|
Mar. 31, 2018
segment
| |
Accounting Policies [Abstract] | |
Number of primary business lines | 4 |
Acquisitions - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Feb. 22, 2017 |
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Business Acquisition [Line Items] | |||
Excess purchase price over carrying value of acquired assets | $ 26 | $ 7,887 | |
MEH South Texas Terminals LLC | |||
Business Acquisition [Line Items] | |||
Percentage of voting interests acquired | 100.00% | ||
Purchase price | $ 27,420 | 27,420 | |
Excess purchase price over carrying value of acquired assets | $ 7,887 | 7,913 | |
Purchase price true-up | $ 26 | ||
Excess purchase price over carrying value of acquired assets, percentage | 3.00% |
Acquisitions - Purchase Price (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Feb. 22, 2017 |
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Business Acquisition [Line Items] | |||
Excess purchase price over carrying value of acquired assets | $ 26 | $ 7,887 | |
MEH South Texas Terminals LLC | |||
Business Acquisition [Line Items] | |||
Original purchase price | $ 27,420 | 27,420 | |
Purchase price true-up | 26 | ||
Historical carrying value of assets allocated to Property, plant and equipment | 19,533 | ||
Excess purchase price over carrying value of acquired assets | $ 7,887 | $ 7,913 |
Divestitures, Asset Impairments, and Discontinued Operations - (Long-Lived Assets Held-for-Sale) (Details) - Disposal Group, Held-for-sale, Not Discontinued Operations - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Long lived assets held-for-sale fair value disclosure | $ 9,442 | $ 9,579 |
Terminalling and storage | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Long lived assets held-for-sale fair value disclosure | 4,242 | 4,152 |
Marine transportation | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Long lived assets held-for-sale fair value disclosure | $ 5,200 | $ 5,427 |
Inventories (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Natural gas liquids | $ 18,922 | $ 47,462 |
Sulfur | 11,299 | 8,436 |
Sulfur based products | 19,107 | 18,674 |
Lubricants | 21,874 | 20,086 |
Other | 2,692 | 2,594 |
Inventories | $ 73,894 | $ 97,252 |
Investment in West Texas LPG Pipeline L.P. - Narrative (Details) - West Texas LPG Pipeline L.P. |
Mar. 31, 2018
mi
|
---|---|
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 20.00% |
Length of common-carrier pipeline system (in miles) | 2,300 |
Common Limited | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 19.80% |
General Partner | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 0.20% |
Investment in West Texas LPG Pipeline L.P. (Selected Financial Information for Equity Method Investees) (Details) - West Texas LPG Pipeline L.P. - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
Dec. 31, 2017 |
|
Schedule of Equity Method Investments [Line Items] | |||
Total Assets | $ 870,691 | $ 837,163 | |
Long-Term Debt | 0 | 0 | |
Members' Equity | 839,028 | $ 787,426 | |
Revenues | 23,041 | $ 19,719 | |
Net Income | $ 7,706 | $ 4,525 |
Supplemental Balance Sheet Information - Other Assets (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||
Customer contracts and relationships, net | $ 23,484 | $ 25,252 |
Other intangible assets | 1,624 | 1,752 |
Other | 4,671 | 5,797 |
Other assets, net | 29,779 | 32,801 |
Accumulated amortization of intangible assets | $ 41,984 | $ 39,462 |
Supplemental Balance Sheet Information - Other Accrued Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||
Accrued interest | $ 4,952 | $ 11,726 |
Asset retirement obligations | 3,360 | 5,429 |
Property and other taxes payable | 3,279 | 5,638 |
Accrued payroll | 3,636 | 3,385 |
Other | 7 | 162 |
Total other accrued liabilities | $ 15,234 | $ 26,340 |
Supplemental Balance Sheet Information - Asset Retirement Obligations (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Dec. 31, 2017 |
|
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Beginning asset retirement obligations | $ 13,512 | |
Revisions to existing liabilities | 4,756 | |
Accretion expense | 147 | |
Liabilities settled | (4,360) | |
Ending asset retirement obligations | 14,055 | |
Current portion of asset retirement obligations | (3,360) | $ (5,429) |
Long-term portion of asset retirement obligations | $ 10,695 |
Derivative Instruments and Hedging Activities - Narrative (Details) - bbl |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2018 |
Dec. 31, 2017 |
|
Commodity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional quantity (in bbl) | 50 | 145 |
Derivative Instruments and Hedging Activities - Balance Sheet Derivatives (Details) - Derivatives not designated as hedging instruments - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 82 | $ 0 |
Derivative Liabilities | 0 | 72 |
Commodity contracts | Fair value of derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 82 | 0 |
Derivative Liabilities | $ 0 | $ 72 |
Derivative Instruments and Hedging Activities - Statement of Operations Derivatives (Details) - Derivatives not designated as hedging instruments - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Income on Derivatives | $ 2,470 | $ (2,495) |
Commodity contracts | Cost of products sold | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Income on Derivatives | $ 2,470 | $ (2,495) |
Partners' Capital (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Feb. 22, 2017 |
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Limited Partners' Capital Account [Line Items] | |||
Common limited partner units (in shares) | 39,052,237 | ||
Ownership percentage | 98.00% | ||
General partner interest percentage | 2.00% | ||
Common units sold in public offering (in shares) | 2,990,000 | ||
Share price (USD per share) | $ 18.00 | ||
Proceeds from the sale of common units, net of offering costs | $ 51,188 | ||
General partner contribution | $ 1,098 | $ 0 | $ 1,098 |
Martin Resource Management | |||
Limited Partners' Capital Account [Line Items] | |||
Voting interest percentage | 51.00% | ||
Martin Resource Management | |||
Limited Partners' Capital Account [Line Items] | |||
Common limited partner units (in shares) | 6,264,532 | ||
Ownership percentage | 16.00% | ||
General partner interest percentage | 2.00% | ||
Voting interest percentage | 16.00% |
Partners' Capital - Net Income Per Unit (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Partners' Capital Notes [Abstract] | ||
Net income | $ 12,818 | $ 13,583 |
Less general partner’s interest in net income (loss): | ||
Distributions payable on behalf of IDRs | 0 | 0 |
Distributions payable on behalf of general partner interest | 392 | 392 |
General partner interest in undistributed loss | (136) | (120) |
Less income allocable to unvested restricted units | 8 | 35 |
Limited partners’ interest in net income (loss) | $ 12,554 | $ 13,276 |
Basic weighted average limited partner units outstanding (in shares) | 38,621,375 | 37,321,263 |
Dilutive effect of restricted units issued (in shares) | 8,252 | 46,121 |
Total weighted average limited partner diluted units outstanding (in shares) | 38,629,627 | 37,367,384 |
Unit Based Awards - Schedule of Compensation Costs (Details) - Selling, General and Administrative Expenses - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total unit-based compensation expense | $ 132 | $ 186 |
Employees | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total unit-based compensation expense | 96 | 159 |
Non-employee directors | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total unit-based compensation expense | $ 36 | $ 27 |
Unit Based Awards - Intrinsic and Fair Value (Details) - Restricted Units - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate intrinsic value of units vested | $ 1,188 | $ 125 |
Fair value of units vested | $ 2,232 | $ 170 |
Related Party Transactions (Details) |
3 Months Ended |
---|---|
Mar. 31, 2018
shares
| |
Related Party Transaction [Line Items] | |
General partner interest percentage | 2.00% |
Martin Resource Management | |
Related Party Transaction [Line Items] | |
Number of shares owned (in shares) | 6,264,532 |
Ownership percentage | 16.00% |
General partner interest percentage | 2.00% |
MMGP Holdings, LLC | Martin Resource Management | |
Related Party Transaction [Line Items] | |
General partner interest percentage | 51.00% |
Related Party Transactions - Omnibus Agreement (Details) - Omnibus Agreement - Martin Resource Management - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Related Party Transaction [Line Items] | ||
Noncompete restriction threshold | $ 5,000,000 | |
Noncompete restriction ownership option opportunity threshold minimum | 5,000,000 | |
Noncompete restriction ownership option opportunity threshold minimum with equity limitation | $ 5,000,000 | |
Equity limitation on ownership restriction percentage | 20.00% | |
Approved annual reimbursements for indirect expenses | $ 16,416,000 | |
Indirect expenses reimbursed | $ 4,104,000 | $ 4,104,000 |
Related Party Transactions - Motor Carrier Agreement (Details) - Motor Carrier Agreement - Martin Resource Management |
3 Months Ended |
---|---|
Mar. 31, 2018 | |
Related Party Transaction [Line Items] | |
Automatic consecutive term renewal period (in years) | 1 year |
Termination written notice, minimum (in days) | 30 days |
Partnership notice period to terminate agreement (in days) | 90 days |
Related Party Transactions - Marine Agreements (Details) - Marine Transportation Agreement - Martin Resource Management |
3 Months Ended |
---|---|
Mar. 31, 2018 | |
Related Party Transaction [Line Items] | |
Automatic consecutive term renewal period (in years) | 1 year |
Termination written notice, minimum (in days) | 60 days |
Related Party Transactions - Terminal Services Agreements (Details) |
3 Months Ended |
---|---|
Mar. 31, 2018 | |
Martin Resource Management | |
Related Party Transaction [Line Items] | |
Termination written notice, minimum (in days) | 60 days |
Related Party Transactions - Other Agreements (Details) - Martin Resource Management |
3 Months Ended |
---|---|
Mar. 31, 2018
bbl
| |
Cross Tolling Agreement | |
Related Party Transaction [Line Items] | |
Production minimum per day (in bbl) | 6,500 |
Annual escalation benchmark percentage | 3.00% |
Sulfuric Acid Sales Agency Agreement | |
Related Party Transaction [Line Items] | |
Partnership notice period to terminate agreement (in days) | 90 days |
Related Party Transactions - Other Related Party Transactions (Details) - Martin Energy Trading LLC - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Related Party Transaction [Line Items] | ||
Due from related parties, annual interest rate | 15.00% | |
Interest expense | ||
Related Party Transaction [Line Items] | ||
Interest income, related party | $ 0 | $ 555 |
Notes Receivable | ||
Related Party Transaction [Line Items] | ||
Note receivable - affiliate | $ 15,000 |
Commitments and Contingencies (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Oct. 02, 2012 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Mar. 31, 2018 |
|
Loss Contingencies [Line Items] | ||||
Non-cancelable revenue arrangements, future minimum revenues, 2018 | $ 16,672 | |||
Non-cancelable revenue arrangements, future minimum revenues, 2019 | 19,199 | |||
Non-cancelable revenue arrangements, future minimum revenues, 2020 | 17,478 | |||
Non-cancelable revenue arrangements, future minimum revenues, 2021 | 15,589 | |||
Non-cancelable revenue arrangements, future minimum revenues, 2022 | 15,589 | |||
Non-cancelable revenue arrangements, future minimum revenues, subsequent years | $ 72,872 | |||
Martin Resource Management | ||||
Loss Contingencies [Line Items] | ||||
Quarterly purchase price reimbursement for non compliance | $ 750 | $ 1,125 | ||
Maximum purchase price reimbursement for non compliance | $ 4,500 |
Fair Value Measurements (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Recurring | Level 2 | Commodity contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | $ 82 | $ (72) |
Nonrecurring | 2021 Senior unsecured notes | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
2021 Senior unsecured notes | 372,712 | 372,618 |
Nonrecurring | 2021 Senior unsecured notes | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
2021 Senior unsecured notes | $ 377,071 | $ 381,657 |
Subsequent Events (Details) - Subsequent Event |
Apr. 19, 2018
$ / shares
|
---|---|
Subsequent Event [Line Items] | |
Dividends declared (USD per share) | $ 0.50 |
Estimated annualized dividends (USD per share) | $ 2.00 |
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