XML 28 R17.htm IDEA: XBRL DOCUMENT v3.7.0.1
Subsequent Events
3 Months Ended
Mar. 31, 2017
Subsequent Events [Abstract]  
Subsequent Events
Subsequent Events

We have evaluated events that have occurred after March 31, 2017, through the issuance of these condensed consolidated financial statements. Any material subsequent events that occurred during this time have been properly recognized or disclosed in the consolidated financial statements and accompanying notes.

Distribution

On April 19, 2017, the Board declared a cash distribution of $0.29100 per limited partner unit for the three months ended March 31, 2017. The distribution will be paid on May 12, 2017 to unitholders of record as of May 1, 2017.

April 2017 Divestiture

On April 28, 2017, we entered into a transaction to divest a small segment of our Zydeco pipeline system (the “April 2017 Divestiture”) to a related party as part of the Motiva JV separation. We determined that the 5.5-mile pipeline segment that connects Port Neches to the Port Arthur Refinery is not strategic to the overall Zydeco pipeline system. The total transaction price was $21.0 million.

May 2017 Acquisition

On May 4, 2017, we entered into a purchase and sale agreement with Shell Chemical LP (“Shell Chemical”), Shell GOM Pipeline Company LP and SPLC to acquire a 100% interest in the following assets for $630.0 million: (1) a network of approximately 100-miles of pipeline connecting Shell Chemical sites to multiple refineries along the Gulf Coast; (2) approximately 128-miles of pipeline aggregating volumes from five pipelines and delivering volumes to key onshore markets, which we refer to as the Delta Pipeline; and (3) a pipeline system of approximately 75-miles located in the Eastern Gulf of Mexico serving as a host to eight different subsea fields and connecting to the Delta Pipeline, which we refer to as the Na Kika Pipeline (collectively, the “May 2017 Acquisition”). We expect to complete the May 2017 Acquisition on or around May 10, 2017, subject to customary closing conditions. We expect to fund the May 2017 Acquisition with a combination of borrowings under our credit facilities and cash on hand.