Retrospective Adjustment

3 Months Ended

Mar. 31, 2016

Business Combinations [Abstract]

Retrospective Adjustment

Retrospective Adjustment

On November 17, 2015, we acquired from SPLC a 100% interest in Pecten, which holds the Shell Auger and Lockport Operations. The acquisition of Pecten was a transfer of a business between entities under common control, which requires it to be accounted for as if the transfer had occurred at the beginning of the period of transfer, with prior periods retrospectively adjusted to furnish comparative financial information. Accordingly, the accompanying financial statements and notes for the three months ended March 31, 2015 have been retrospectively adjusted to include the historical results of the business of Auger and Lockport (the “Shell Auger and Lockport Operations”) prior to the acquisition's effective date of October 1, 2015 and are reflected in “Net Parent Investment.” See Note 2 – Summary of Significant Accounting Policies – Common Control Transactions in the Notes to Consolidated Financial Statements of our 2015 Annual Report for further discussion of how we account for the acquisition of assets and businesses under common control. See Note 3 – Acquisitions in the Notes to Consolidated Financial Statements of our 2015 Annual Report for further discussion of this acquisition.

The following tables present our condensed consolidated statement of income and condensed consolidated statement of cash flows for the three months ended March 31, 2015 giving effect to the acquisition of Pecten. The results of Pecten prior to the effective date of the acquisition are included in the “Shell Auger and Lockport Operations” and the consolidated results are included in “Consolidated Results” within the tables below :

Condensed Consolidated Statement of Income	Three Months Ended March 31, 2015
			Shell Auger
	Shell Midstream		and Lockport		Consolidated
	Partners, L.P. (1)		Operations (2)		Results
Revenue
Third parties	$	41.3	$	5.2	$	46.5
Related parties	10.4		9.0		19.4
Total revenue	51.7		14.2		65.9
Costs and expenses
Operations and maintenance – third parties	6.9		2.5		9.4
Operations and maintenance – related parties	3.9		1.3		5.2
General and administrative – third parties	1.6		0.1		1.7
General and administrative – related parties	5.0		0.6		5.6
Depreciation, amortization and accretion	3.4		1.8		5.2
Property and other taxes	3.2		0.2		3.4
Total costs and expenses	24.0		6.5		30.5
Operating income	27.7		7.7		35.4
Income from equity investments	12.5		—		12.5
Dividend income from investment	1.6		—		1.6
Investment and dividend income	14.1		—		14.1
Interest expense, net	0.2		—		0.2
Income before income taxes	41.6		7.7		49.3
Income tax expense	0.2		—		0.2
Net income	41.4		7.7		49.1
Less: Net income attributable to Parent	—		7.7		7.7
Less: Net income attributable to noncontrolling interests	17.8		—		17.8
Net income attributable to the Partnership	$	23.6	$	—	$	23.6

⁽¹⁾ As previously reported in our Quarterly Report on Form 10-Q for the three months ended March 31, 2015.

⁽²⁾ Results of the Shell Auger and Lockport Operations from January 1, 2015 through March 31, 2015.

Condensed Consolidated Statement of Cash Flows	Three Months Ended March 31, 2015
				Shell Auger
	Shell Midstream			and Lockport			Consolidated
	Partners, L.P. (1)			Operations (2)			Results
Cash flows from operating activities
Net income	$	41.4		$	7.7		$	49.1
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation, amortization and accretion	3.4			1.8			5.2
Changes in operating assets and liabilities
Accounts receivable	6.1			5.1			11.2
Allowance oil	0.3			0.4			0.7
Prepaid expenses	1.1			0.3			1.4
Accounts payable	(6.2		)	(0.4		)	(6.6		)
Deferred revenue	6.9			—			6.9
Accrued liabilities	4.4			0.3			4.7
Net cash provided by operating activities	57.4			15.2			72.6
Cash flows from investing activities
Capital expenditures	(2.5		)	(0.1		)	(2.6		)
Return of investment	3.2			—			3.2
Payment of pre-IPO distributions from investments to SPLC	(11.9		)	—			(11.9		)
Net cash used in investing activities	(11.2		)	(0.1		)	(11.3		)
Cash flows from financing activities
Distributions to noncontrolling interest	(25.1		)	—			(25.1		)
Distributions to unitholders and general partner	(14.4		)	—			(14.4		)
Net distributions to Parent	—			(15.1		)	(15.1		)
Net cash used in financing activities	(39.5		)	(15.1		)	(54.6		)
Net increase in cash and cash equivalents	6.7			—			6.7
Cash and cash equivalents at beginning of the period	150.2			—			150.2
Cash and cash equivalents at end of the period	$	156.9		$	—		$	156.9
Supplemental Cash Flow Information
Non-cash investing transactions
Change in accrued capital expenditures	$	(0.5	)	$	—		$	(0.5	)

⁽¹⁾ As previously reported in our Quarterly Report on Form 10-Q for the three months ended March 31, 2015.

⁽²⁾ Results of the Shell Auger and Lockport Operations from January 1, 2015 through March 31, 2015.