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Lease Accounting
 12 Months Ended
Dec. 31, 2025
Assets Under Operating Leases [Abstract]  
Lease Accounting Lease Accounting
Lessee Accounting
The Partnership leases retail stores, other property, plant and equipment under non-cancellable operating leases whose initial terms are typically five to 15 years, with options that permit renewals for additional periods. At the inception of each, we determine if the arrangement is a lease or contains an embedded lease and review the facts and circumstances of the arrangement to classify leased assets as operating or finance under Topic 842. The Partnership has elected not to record any leases with terms of 12 months or less on our consolidated balance sheets.
At this time, the majority of active leases within our portfolio are classified as operating leases. Operating leases are included in operating lease right-of-use assets, net, operating lease current liabilities and operating lease non-current liabilities on our consolidated balance sheets. Finance leases represent a small portion of the active lease agreements and are included in other non-current assets and long-term debt, net on our consolidated balance sheets. The right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make minimum lease payments arising from the lease for the duration of the lease term.
Most leases include one or more options to renew, with renewal terms that can extend the lease term from five to 10 years or greater. The exercise of lease renewal options is typically at our discretion. Additionally, many leases contain early termination clauses, however early termination typically requires the agreement of both parties to the lease. At lease inception, all renewal options reasonably certain to be exercised are considered when determining the lease term. At this time, the Partnership does not
have leases that include options to purchase or automatic transfer of ownership of the leased property to the Partnership. The depreciable life of leased assets and leasehold improvements are limited by the expected lease term.
To determine the present value of future minimum lease payments, we use the implicit rate when readily determinable. At this time, many of our leases do not provide an implicit rate, therefore to determine the present value of minimum lease payments we use our incremental borrowing rate based on the information available at lease commencement date. The right-of-use assets also include any lease payments made and exclude lease incentives.
Minimum rent payments are expensed on a straight-line basis over the term of the lease. In addition, some leases may require additional contingent or variable lease payments based on factors specific to the individual agreement. Variable lease payments we are typically responsible for include payment of real estate taxes, maintenance expenses and insurance.
The components of lease expense consisted of the following:
Year Ended December 31,
Lease costClassification20252024
Operating lease costs:
Operating lease costLease expense$96 $50 
Finance lease costs:
Amortization of leased assetsDepreciation, amortization and accretion4 1 
Interest on lease liabilitiesInterest expense3 2 
Short-term lease costLease expense7 4 
Variable lease costLease expense11 18 
Sublease incomeLease income(35)(45)
Net lease cost$86 $30 
Lease term and discount rateDecember 31, 2025December 31, 2024
Weighted average remaining lease term (years)
Operating leases1619
Finance leases1118
Weighted average discount rate (%)
Operating leases6 %6 %
Finance leases5 %6 %
Year Ended December 31,
Other information20252024
Cash paid for amount included in the measurement of lease liabilities:
Operating cash flows from operating leases$(92)$(49)
Operating cash flows from finance leases(4)(1)
Financing cash flows from finance leases(1)(1)
Leased assets obtained in exchange for new finance lease liabilities1 — 
Leased assets obtained in exchange for new operating lease liabilities279 3 

Maturities of lease liabilities as of December 31, 2025 were as follows:
Operating leasesFinance leasesTotal
2026$240 $16 $256 
2027196 15 211 
2028171 15 186 
2029149 12 161 
2030138 6 144 
Thereafter1,445 53 1,498 
Total lease payments2,339 117 2,456 
Less: interest873 30 903 
Present value of lease liabilities$1,466 $87 $1,553 
Lessor Accounting
The Partnership leases or subleases a portion of its real estate portfolio to third-party companies as a stable source of long-term revenue. Our lessor and sublease portfolio consists mainly of operating leases with convenience store operators. At this time, most lessor agreements contain five-year terms with renewal options to extend and early termination options based on established terms specific to the individual agreement. Additionally, we lease certain of our storage tanks in exchange for a fixed fee, subject to an annual consumer price index adjustment.
Minimum future lease payments receivable as of December 31, 2025 were as follows:
2026$154 
2027124 
202898 
202978 
203068 
Thereafter369 
Total undiscounted cash flows$891 
The balances of property, plant and equipment that are being leased to third parties were as follows:
December 31, 2025December 31, 2024
Land and improvements$698 $513 
Buildings, equipment and leasehold improvements1,045 556 
Pipelines377 217 
Product storage and related facilities410 283 
Right of way105 — 
Other 81 39 
Construction work-in-process54 64 
Total property, plant and equipment2,770 1,672 
Less: Accumulated depreciation(829)(449)
Property, plant and equipment, net$1,941 $1,223