Discontinued Operations

6 Months Ended

Jun. 30, 2016

Discontinued Operations

Discontinued Operations

3. Discontinued Operations

On February 1, 2016, we sold certain trucking and marketing assets in the Mid-Continent area (the “Mid-Continent Business”) to JP Development, simultaneous with JP Development’s sale of its GSPP pipeline assets to a third party buyer. The sales price related to the Mid-Continent Business was $9,685,000, in cash, which included certain adjustments related to inventory and other working capital items. As of December 31, 2015, the Mid-Continent Business met all the criteria to be classified as assets held for sale in accordance with ASC 360; therefore, we classified all the related assets and liabilities as held for sale in the condensed consolidated balance sheet at that date. The operating results of the Mid-Continent Business have been classified as discontinued operations for all periods presented in the condensed consolidated statements of operations. We combined the cash flows from the Mid-Continent Business with the cash flows from continuing operations for all periods presented in the condensed consolidated statements of cash flows. The Mid-Continent Business will not generate any continuing cash flows subsequent to the date of disposition. Prior to the classification as discontinued operations, we reported the Mid-Continent Business in our crude oil pipelines and storage segment. The following table summarizes selected financial information related to the Mid-Continent Business’ operations for the three and six months ended June 30, 2016 and 2015.

Condensed Consolidated Statements of Operations

The discontinued operations of the Mid-Continent Business are summarized below:

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
	(in thousands)
REVENUES
Crude oil sales	$	—	$	141,024	$	11,493	$	266,986
Gathering, transportation and storage fees		—		2		—		6
Other revenues		—		13		2		42
Total revenues		—		141,039		11,495		267,034
COSTS AND EXPENSES
Cost of sales, excluding depreciation and amortization		—		139,460		11,687		264,434
Operating expense		—		296		172		654
General and administrative		—		166		31		587
Depreciation and amortization		—		569		211		1,145
Loss (gain) on disposal of assets, net		—		7		(114)		24
Total costs and expenses		—		140,498		11,987		266,844
OPERATING INCOME (LOSS)		—		541		(492)		190
OTHER INCOME (EXPENSE)
Interest expense		—		—		(47)		(57)
Other income, net		—		1		—		2
INCOME (LOSS) FROM DISCONTINUED OPERATIONS BEFORE INCOME TAXES		—		542		(539)		135
Income tax expense		—		—		—		—
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS	$	—	$	542	$	(539)	$	135

Condensed Consolidated Balance Sheets

The current and non-current assets and liabilities of the Mid-Continent Business are as follows:

	December 31,
	2015
	(in thousands)
ASSETS
Current assets
Inventory	$	2,692
Prepaid expenses and other current assets		38
Total Current assets of discontinued operations held for sale		2,730
Non-current assets
Property, plant and equipment, net		5,203
Intangible assets, net		1,138
Deferred financing costs and other assets, net		303
Total Non-current assets of discontinued operations held for sale		6,644
Total Assets of discontinued operations held for sale	$	9,374
LIABILITIES
Current liabilities
Accrued liabilities	$	640
Total Current liabilities of discontinued operations held for sale	$	640

The following table summarizes other selected financial information related to the Mid-Continent Business:

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
	(in thousands)
Depreciation	$	—	$	317	$	115	$	625
Amortization		—		252		96		520
Capital expenditures		—		155		—		373
Other operating noncash items related to discontinued operations:
Derivative valuation changes	$	—	$	777	$	—	$	1,413
(Gain) loss on disposal of assets		—		7		(114)		24