Inventory

9 Months Ended

Sep. 30, 2020

Inventory Disclosure [Abstract]

Inventory

Inventory

Inventory consists primarily of spare parts and equipment related to the Partnership’s midstream infrastructure. Inventory is stated at the lower of cost and net realizable value with cost determined on an average cost method. The Partnership assesses the carrying value of inventory and uses estimates and judgments when making any adjustments necessary to reduce the carrying value to net realizable value. Due to lower market prices, the Partnership recorded an inventory write-down of $0.4 million for the three months ended September 30, 2020 and $0.6 million for the nine months ended September 30, 2020.

The carrying value of the Partnership’s inventory was $8.1 million at September 30, 2020. The Partnership had no inventory at December 31, 2019.