QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 73-1599053 | |||||||
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Units | MMP | New York Stock Exchange |
ITEM 1. | ITEM 1. | CONSOLIDATED FINANCIAL STATEMENTS | ||||||||||||||||
ITEM 1. | CONSOLIDATED FINANCIAL STATEMENTS | |||||||||||||||||
CONSOLIDATED STATEMENT OF PARTNERS’ CAPITAL | ||||||||||||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS: | ||||||||||||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS: | 1. | |||||||||||||||||
1. | 2. | |||||||||||||||||
2. | 3. | |||||||||||||||||
3. | 4. | |||||||||||||||||
4. | 5. | |||||||||||||||||
5. | 6. | |||||||||||||||||
6. | 7. | |||||||||||||||||
7. | 8. | |||||||||||||||||
8. | 9. | |||||||||||||||||
9. | 10. | |||||||||||||||||
10. | 11. | |||||||||||||||||
11. | 12. | |||||||||||||||||
12. | 13. | |||||||||||||||||
13. | 14. | |||||||||||||||||
14. | 15. | |||||||||||||||||
ITEM 2. | ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | ||||||||||||||
ITEM 3. | ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | ||||||||||||||
ITEM 4. | ITEM 4. | CONTROLS AND PROCEDURES | ITEM 4. | CONTROLS AND PROCEDURES | ||||||||||||||
PART II OTHER INFORMATION | PART II OTHER INFORMATION | PART II OTHER INFORMATION | ||||||||||||||||
ITEM 1. | ITEM 1. | ITEM 1. | ||||||||||||||||
ITEM 1A. | ITEM 1A. | ITEM 1A. | ||||||||||||||||
ITEM 2. | ITEM 2. | ITEM 2. | ||||||||||||||||
ITEM 3. | ITEM 3. | ITEM 3. | ||||||||||||||||
ITEM 4. | ITEM 4. | ITEM 4. | ||||||||||||||||
ITEM 5. | ITEM 5. | ITEM 5. | ||||||||||||||||
ITEM 6. | ITEM 6. | ITEM 6. | ||||||||||||||||
INDEX TO EXHIBITS | INDEX TO EXHIBITS | |||||||||||||||||
SIGNATURES | SIGNATURES |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2019 | 2020 | 2019 | 2020 | ||||||||||||||||||||
Transportation and terminals revenue | $ | 506,432 | $ | 473,531 | $ | 1,473,629 | $ | 1,343,741 | |||||||||||||||
Product sales revenue | 144,807 | 119,445 | 497,791 | 481,842 | |||||||||||||||||||
Affiliate management fee revenue | 5,357 | 5,288 | 15,810 | 15,895 | |||||||||||||||||||
Total revenue | 656,596 | 598,264 | 1,987,230 | 1,841,478 | |||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Operating | 169,387 | 161,982 | 484,341 | 457,597 | |||||||||||||||||||
Cost of product sales | 108,757 | 96,119 | 430,727 | 395,864 | |||||||||||||||||||
Depreciation, amortization and impairment | 56,627 | 71,822 | 181,028 | 193,896 | |||||||||||||||||||
General and administrative | 51,156 | 38,016 | 149,534 | 117,092 | |||||||||||||||||||
Total costs and expenses | 385,927 | 367,939 | 1,245,630 | 1,164,449 | |||||||||||||||||||
Other operating income (expense) | (379) | (2,863) | 1,538 | 539 | |||||||||||||||||||
Earnings of non-controlled entities | 50,189 | 39,135 | 122,229 | 116,484 | |||||||||||||||||||
Operating profit | 320,479 | 266,597 | 865,367 | 794,052 | |||||||||||||||||||
Interest expense | 53,750 | 54,212 | 165,322 | 179,371 | |||||||||||||||||||
Interest capitalized | (5,831) | (1,272) | (14,419) | (10,451) | |||||||||||||||||||
Interest income | (648) | (260) | (2,646) | (903) | |||||||||||||||||||
Gain on disposition of assets | (2,532) | 0 | (28,966) | (12,887) | |||||||||||||||||||
Other (income) expense | 2,602 | 1,455 | 9,222 | 3,708 | |||||||||||||||||||
Income before provision for income taxes | 273,138 | 212,462 | 736,854 | 635,214 | |||||||||||||||||||
Provision for income taxes | 100 | 824 | 2,450 | 2,169 | |||||||||||||||||||
Net income | $ | 273,038 | $ | 211,638 | $ | 734,404 | $ | 633,045 | |||||||||||||||
Basic net income per common unit | $ | 1.19 | $ | 0.94 | $ | 3.21 | $ | 2.80 | |||||||||||||||
Diluted net income per common unit | $ | 1.19 | $ | 0.94 | $ | 3.21 | $ | 2.80 | |||||||||||||||
Weighted average number of common units outstanding used for basic net income per unit calculation | 228,720 | 225,222 | 228,642 | 226,045 | |||||||||||||||||||
Weighted average number of common units outstanding used for diluted net income per unit calculation | 228,754 | 225,222 | 228,667 | 226,045 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2016 | 2017 | 2016 | 2017 | ||||||||||||
Transportation and terminals revenue | $ | 413,433 | $ | 446,935 | $ | 1,175,748 | $ | 1,272,845 | |||||||
Product sales revenue | 133,356 | 121,010 | 403,607 | 548,634 | |||||||||||
Affiliate management fee revenue | 4,993 | 4,903 | 11,140 | 12,883 | |||||||||||
Total revenue | 551,782 | 572,848 | 1,590,495 | 1,834,362 | |||||||||||
Costs and expenses: | |||||||||||||||
Operating | 134,915 | 165,368 | 392,011 | 442,254 | |||||||||||
Cost of product sales | 118,242 | 121,819 | 327,530 | 440,670 | |||||||||||
Depreciation and amortization | 47,081 | 49,909 | 134,137 | 146,103 | |||||||||||
General and administrative | 35,584 | 37,202 | 110,814 | 120,876 | |||||||||||
Total costs and expenses | 335,822 | 374,298 | 964,492 | 1,149,903 | |||||||||||
Earnings of non-controlled entities | 18,576 | 31,151 | 51,543 | 78,173 | |||||||||||
Operating profit | 234,536 | 229,701 | 677,546 | 762,632 | |||||||||||
Interest expense | 50,163 | 51,895 | 142,573 | 154,653 | |||||||||||
Interest income | (302 | ) | (240 | ) | (1,067 | ) | (788 | ) | |||||||
Interest capitalized | (7,877 | ) | (3,424 | ) | (21,143 | ) | (10,804 | ) | |||||||
Gain on sale of asset | — | (18,505 | ) | — | (18,505 | ) | |||||||||
Gain on exchange of interest in non-controlled entity | — | — | (28,144 | ) | — | ||||||||||
Other expense (income) | (2,737 | ) | 549 | (6,447 | ) | 3,762 | |||||||||
Income before provision for income taxes | 195,289 | 199,426 | 591,774 | 634,314 | |||||||||||
Provision for income taxes | 738 | 926 | 2,294 | 2,678 | |||||||||||
Net income | $ | 194,551 | $ | 198,500 | $ | 589,480 | $ | 631,636 | |||||||
Basic net income per limited partner unit | $ | 0.85 | $ | 0.87 | $ | 2.59 | $ | 2.77 | |||||||
Diluted net income per limited partner unit | $ | 0.85 | $ | 0.87 | $ | 2.59 | $ | 2.77 | |||||||
Weighted average number of limited partner units outstanding used for basic net income per unit calculation(1) | 227,960 | 228,199 | 227,913 | 228,167 | |||||||||||
Weighted average number of limited partner units outstanding used for diluted net income per unit calculation(1) | 227,999 | 228,260 | 227,947 | 228,222 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2019 | 2020 | 2019 | 2020 | ||||||||||||||||||||
Net income | $ | 273,038 | $ | 211,638 | $ | 734,404 | $ | 633,045 | |||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Derivative activity: | |||||||||||||||||||||||
Net loss on cash flow hedges | (14,181) | 0 | (25,216) | (10,444) | |||||||||||||||||||
Reclassification of net loss on cash flow hedges to income | 699 | 896 | 1,927 | 2,552 | |||||||||||||||||||
Changes in employee benefit plan assets and benefit obligations recognized in other comprehensive income: | |||||||||||||||||||||||
Net actuarial loss | 0 | 0 | (10,913) | (333) | |||||||||||||||||||
Curtailment gain | 0 | 0 | 0 | 1,703 | |||||||||||||||||||
Recognition of prior service credit amortization in income | (46) | (46) | (136) | (136) | |||||||||||||||||||
Recognition of actuarial loss amortization in income | 1,412 | 1,473 | 4,385 | 4,462 | |||||||||||||||||||
Recognition of settlement cost in income | 439 | 0 | 2,499 | 969 | |||||||||||||||||||
Total other comprehensive income (loss) | (11,677) | 2,323 | (27,454) | (1,227) | |||||||||||||||||||
Comprehensive income | $ | 261,361 | $ | 213,961 | $ | 706,950 | $ | 631,818 | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2017 | 2016 | 2017 | ||||||||||||
Net income | $ | 194,551 | $ | 198,500 | $ | 589,480 | $ | 631,636 | |||||||
Other comprehensive income: | |||||||||||||||
Derivative activity: | |||||||||||||||
Net gain (loss) on cash flow hedges(1) | (3,169 | ) | (228 | ) | (24,278 | ) | (1,735 | ) | |||||||
Reclassification of net (gain) loss on cash flow hedges to income(1) | 512 | 740 | 1,288 | 2,219 | |||||||||||
Changes in employee benefit plan assets and benefit obligations recognized in other comprehensive income: | |||||||||||||||
Amortization of prior service credit(2) | (973 | ) | (45 | ) | (2,920 | ) | (136 | ) | |||||||
Amortization of actuarial loss(2) | 1,452 | 1,568 | 4,145 | 4,779 | |||||||||||
Settlement cost(2) | 202 | 289 | 202 | 2,015 | |||||||||||
Total other comprehensive income (loss) | (1,976 | ) | 2,324 | (21,563 | ) | 7,142 | |||||||||
Comprehensive income | $ | 192,575 | $ | 200,824 | $ | 567,917 | $ | 638,778 |
December 31, 2016 | September 30, 2017 | December 31, 2019 | September 30, 2020 | |||||||||||||||
ASSETS | (Unaudited) | ASSETS | (Unaudited) | |||||||||||||||
Current assets: | Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 14,701 | $ | 1,381 | Cash and cash equivalents | $ | 58,030 | $ | 8,541 | |||||||||
Trade accounts receivable | 105,689 | 128,765 | Trade accounts receivable | 125,440 | 109,051 | |||||||||||||
Other accounts receivable | 25,761 | 13,349 | Other accounts receivable | 23,887 | 27,735 | |||||||||||||
Inventory | 134,378 | 168,762 | Inventory | 184,399 | 129,033 | |||||||||||||
Energy commodity derivatives contracts, net | — | 1,189 | ||||||||||||||||
Energy commodity derivatives deposits | 49,899 | 31,735 | ||||||||||||||||
Commodity derivatives deposits | Commodity derivatives deposits | 27,415 | 14,031 | |||||||||||||||
Reimbursable costs | Reimbursable costs | 7,878 | 17,065 | |||||||||||||||
Other current assets | 39,966 | 62,247 | Other current assets | 32,359 | 35,787 | |||||||||||||
Total current assets | 370,394 | 407,428 | Total current assets | 459,408 | 341,243 | |||||||||||||
Property, plant and equipment | 6,783,737 | 7,121,856 | Property, plant and equipment | 8,431,227 | 8,319,400 | |||||||||||||
Less: Accumulated depreciation | 1,507,996 | 1,638,351 | ||||||||||||||||
Less: accumulated depreciation | Less: accumulated depreciation | 2,027,193 | 2,036,351 | |||||||||||||||
Net property, plant and equipment | 5,275,741 | 5,483,505 | Net property, plant and equipment | 6,404,034 | 6,283,049 | |||||||||||||
Investments in non-controlled entities | 931,255 | 1,066,940 | Investments in non-controlled entities | 1,240,551 | 1,211,079 | |||||||||||||
Right-of-use asset, operating leases | Right-of-use asset, operating leases | 171,868 | 152,082 | |||||||||||||||
Long-term receivables | 23,870 | 27,166 | Long-term receivables | 20,782 | 21,850 | |||||||||||||
Goodwill | 53,260 | 53,260 | Goodwill | 53,260 | 52,830 | |||||||||||||
Other intangibles (less accumulated amortization of $2,136 and $1,308 at December 31, 2016 and September 30, 2017, respectively) | 51,976 | 52,845 | ||||||||||||||||
Other intangibles (less accumulated amortization of $6,255 and $8,575 at December 31, 2019 and September 30, 2020, respectively) | Other intangibles (less accumulated amortization of $6,255 and $8,575 at December 31, 2019 and September 30, 2020, respectively) | 47,898 | 45,578 | |||||||||||||||
Restricted cash | Restricted cash | 26,569 | 11,792 | |||||||||||||||
Other noncurrent assets | 65,577 | 12,303 | Other noncurrent assets | 13,359 | 20,693 | |||||||||||||
Total assets | $ | 6,772,073 | $ | 7,103,447 | Total assets | $ | 8,437,729 | $ | 8,140,196 | |||||||||
LIABILITIES AND PARTNERS’ CAPITAL | LIABILITIES AND PARTNERS’ CAPITAL | |||||||||||||||||
Current liabilities: | Current liabilities: | |||||||||||||||||
Accounts payable | $ | 77,248 | $ | 120,990 | Accounts payable | $ | 150,992 | $ | 124,612 | |||||||||
Accrued payroll and benefits | 45,690 | 40,082 | Accrued payroll and benefits | 75,511 | 40,285 | |||||||||||||
Accrued interest payable | 65,643 | 42,257 | Accrued interest payable | 64,276 | 49,501 | |||||||||||||
Accrued taxes other than income | 50,166 | 49,844 | Accrued taxes other than income | 66,007 | 65,283 | |||||||||||||
Environmental liabilities | 10,249 | 9,870 | ||||||||||||||||
Deferred revenue | 101,891 | 116,697 | Deferred revenue | 109,654 | 92,227 | |||||||||||||
Accrued product liabilities | 51,600 | 119,572 | Accrued product liabilities | 90,788 | 79,388 | |||||||||||||
Energy commodity derivatives contracts, net | 30,738 | 14,898 | ||||||||||||||||
Current portion of long-term debt, net | — | 251,439 | ||||||||||||||||
Commodity derivatives contracts, net | Commodity derivatives contracts, net | 10,222 | 2,888 | |||||||||||||||
Current portion of operating lease liability | Current portion of operating lease liability | 26,221 | 27,177 | |||||||||||||||
Other current liabilities | 48,431 | 44,065 | Other current liabilities | 73,205 | 50,258 | |||||||||||||
Total current liabilities | 481,656 | 809,714 | Total current liabilities | 666,876 | 531,619 | |||||||||||||
Long-term operating lease liability | Long-term operating lease liability | 144,023 | 121,764 | |||||||||||||||
Long-term debt, net | 4,087,192 | 4,051,411 | Long-term debt, net | 4,706,075 | 4,900,311 | |||||||||||||
Long-term pension and benefits | 71,461 | 66,410 | Long-term pension and benefits | 145,992 | 142,154 | |||||||||||||
Other noncurrent liabilities | 25,868 | 29,799 | Other noncurrent liabilities | 59,735 | 55,904 | |||||||||||||
Environmental liabilities | 13,791 | 10,818 | ||||||||||||||||
Commitments and contingencies | Commitments and contingencies | |||||||||||||||||
Partners’ capital: | Partners’ capital: | |||||||||||||||||
Limited partner unitholders (227,784 units and 228,025 units outstanding at December 31, 2016 and September 30, 2017, respectively) | 2,193,346 | 2,229,394 | ||||||||||||||||
Common unitholders (228,403 units and 223,701 units outstanding at December 31, 2019 and September 30, 2020, respectively) | Common unitholders (228,403 units and 223,701 units outstanding at December 31, 2019 and September 30, 2020, respectively) | 2,877,105 | 2,551,748 | |||||||||||||||
Accumulated other comprehensive loss | (101,241 | ) | (94,099 | ) | Accumulated other comprehensive loss | (162,077) | (163,304) | |||||||||||
Total partners’ capital | 2,092,105 | 2,135,295 | Total partners’ capital | 2,715,028 | 2,388,444 | |||||||||||||
Total liabilities and partners’ capital | $ | 6,772,073 | $ | 7,103,447 | Total liabilities and partners’ capital | $ | 8,437,729 | $ | 8,140,196 |
Nine Months Ended | |||||||||||
September 30, | |||||||||||
2019 | 2020 | ||||||||||
Operating Activities: | |||||||||||
Net income | $ | 734,404 | $ | 633,045 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation, amortization and impairment expense | 181,028 | 193,896 | |||||||||
Gain on sale and retirement of assets | (29,227) | (13,330) | |||||||||
Earnings of non-controlled entities | (122,229) | (116,484) | |||||||||
Distributions from operations of non-controlled entities | 138,140 | 152,645 | |||||||||
Equity-based incentive compensation expense | 22,577 | 5,580 | |||||||||
Settlement gain, amortization of prior service credit and actuarial loss | 6,748 | 3,953 | |||||||||
Debt prepayment costs | 8,270 | 12,893 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Trade accounts receivable and other accounts receivable | (24,954) | 8,253 | |||||||||
Inventory | (20,217) | 54,127 | |||||||||
Accounts payable | 29,014 | 9,040 | |||||||||
Accrued payroll and benefits | (13,599) | (35,226) | |||||||||
Accrued interest payable | (15,060) | (14,775) | |||||||||
Accrued taxes other than income | 10,282 | 1,101 | |||||||||
Accrued product liabilities | 33,402 | (11,400) | |||||||||
Deferred revenue | (13,233) | (17,427) | |||||||||
Other current and noncurrent assets and liabilities | (2,749) | (25,786) | |||||||||
Net cash provided by operating activities | 922,597 | 840,105 | |||||||||
Investing Activities: | |||||||||||
Additions to property, plant and equipment, net(1) | (718,605) | (371,170) | |||||||||
Proceeds from sale and disposition of assets | 65,574 | 334,583 | |||||||||
Investments in non-controlled entities | (158,145) | (73,678) | |||||||||
Distributions from returns of investments in non-controlled entities | 7,500 | 0 | |||||||||
Deposits received from undivided joint interest third party | 68,928 | 0 | |||||||||
Net cash used by investing activities | (734,748) | (110,265) | |||||||||
Financing Activities: | |||||||||||
Distributions paid | (688,635) | (697,264) | |||||||||
Net commercial paper borrowings | 0 | 248,000 | |||||||||
Borrowings under long-term notes | 996,405 | 499,400 | |||||||||
Payments on long-term notes | (550,000) | (550,000) | |||||||||
Debt placement costs | (12,012) | (4,255) | |||||||||
Net payment on financial derivatives | (33,342) | (10,444) | |||||||||
Payments associated with settlement of equity-based incentive compensation | (9,764) | (14,700) | |||||||||
Debt prepayment costs | (8,270) | (12,893) | |||||||||
Repurchases of common units | 0 | (251,950) | |||||||||
Net cash used by financing activities | (305,618) | (794,106) | |||||||||
Change in cash, cash equivalents and restricted cash | (117,769) | (64,266) | |||||||||
Cash, cash equivalents and restricted cash at beginning of period | 309,261 | 84,599 | |||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 191,492 | $ | 20,333 | |||||||
Supplemental non-cash investing activities: | |||||||||||
(1) Additions to property, plant and equipment | $ | (775,109) | $ | (317,680) | |||||||
Changes in accounts payable and other current liabilities related to capital expenditures | 56,504 | (53,490) | |||||||||
Additions to property, plant and equipment, net | $ | (718,605) | $ | (371,170) |
Nine Months Ended | |||||||
September 30, | |||||||
2016 | 2017 | ||||||
Operating Activities: | |||||||
Net income | $ | 589,480 | $ | 631,636 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization expense | 134,137 | 146,103 | |||||
Loss (gain) on sale and retirement of assets | 5,397 | (10,924 | ) | ||||
Earnings of non-controlled entities | (51,543 | ) | (78,173 | ) | |||
Distributions of earnings from investments in non-controlled entities | 50,047 | 78,562 | |||||
Equity-based incentive compensation expense | 14,737 | 14,183 | |||||
Settlement cost, amortization of prior service credit and actuarial loss | 1,427 | 6,658 | |||||
Gain on exchange of interest in non-controlled entity | (28,144 | ) | — | ||||
Changes in operating assets and liabilities: | |||||||
Trade accounts receivable and other accounts receivable | (49,014 | ) | (14,413 | ) | |||
Inventory | 7,857 | (34,384 | ) | ||||
Energy commodity derivatives contracts, net of derivatives deposits | 637 | 1,135 | |||||
Accounts payable | 5,850 | 15,576 | |||||
Accrued payroll and benefits | (12,725 | ) | (5,608 | ) | |||
Accrued interest payable | (2,393 | ) | (23,386 | ) | |||
Accrued taxes other than income | 2,115 | (322 | ) | ||||
Accrued product liabilities | (6,183 | ) | 67,972 | ||||
Deferred revenue | 17,191 | 14,806 | |||||
Current and noncurrent environmental liabilities | (5,649 | ) | (3,352 | ) | |||
Other current and noncurrent assets and liabilities | (34,229 | ) | (11,497 | ) | |||
Net cash provided by operating activities | 638,995 | 794,572 | |||||
Investing Activities: | |||||||
Additions to property, plant and equipment, net(1) | (517,810 | ) | (418,239 | ) | |||
Proceeds from sale and disposition of assets | 6,098 | 44,303 | |||||
Investments in non-controlled entities | (174,900 | ) | (114,078 | ) | |||
Distributions in excess of earnings of non-controlled entities | 4,500 | 71,867 | |||||
Net cash used by investing activities | (682,112 | ) | (416,147 | ) | |||
Financing Activities: | |||||||
Distributions paid | (548,388 | ) | (596,854 | ) | |||
Net commercial paper borrowings (repayments) | (244,963 | ) | 218,984 | ||||
Borrowings under long-term notes | 1,142,997 | — | |||||
Debt placement costs | (10,500 | ) | — | ||||
Net payment on financial derivatives | (19,287 | ) | — | ||||
Payments associated with settlement of equity-based incentive compensation | (14,376 | ) | (13,875 | ) | |||
Net cash provided (used) by financing activities | 305,483 | (391,745 | ) | ||||
Change in cash and cash equivalents | 262,366 | (13,320 | ) | ||||
Cash and cash equivalents at beginning of period | 28,731 | 14,701 | |||||
Cash and cash equivalents at end of period | $ | 291,097 | $ | 1,381 | |||
Supplemental non-cash investing and financing activities: | |||||||
Contribution of property, plant and equipment to a non-controlled entity | $ | — | $ | 93,051 | |||
Issuance of limited partner units in settlement of equity-based incentive plan awards | $ | 7,092 | $ | 1,669 | |||
(1) Additions to property, plant and equipment | $ | (514,205 | ) | $ | (443,439 | ) | |
Changes in accounts payable and other current liabilities related to capital expenditures | (3,605 | ) | 25,200 | ||||
Additions to property, plant and equipment, net | $ | (517,810 | ) | $ | (418,239 | ) |
Common Unitholders | Accumulated Other Comprehensive Loss | Total Partners’ Capital | ||||||||||||||||||||||||
Balance, July 1, 2019 | $ | 2,774,047 | $ | (136,268) | $ | 2,637,779 | ||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||
Net income | 273,038 | — | 273,038 | |||||||||||||||||||||||
Total other comprehensive loss | — | (11,677) | (11,677) | |||||||||||||||||||||||
Total comprehensive income (loss) | 273,038 | (11,677) | 261,361 | |||||||||||||||||||||||
Distributions | (231,258) | — | (231,258) | |||||||||||||||||||||||
Equity-based incentive compensation expense | 6,773 | — | 6,773 | |||||||||||||||||||||||
Other | (199) | — | (199) | |||||||||||||||||||||||
Three Months Ended September 30, 2019 | $ | 2,822,401 | $ | (147,945) | $ | 2,674,456 | ||||||||||||||||||||
Balance, July 1, 2020 | $ | 2,620,365 | $ | (165,627) | $ | 2,454,738 | ||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||
Net income | 211,638 | — | 211,638 | |||||||||||||||||||||||
Total other comprehensive income | — | 2,323 | 2,323 | |||||||||||||||||||||||
Total comprehensive income | 211,638 | 2,323 | 213,961 | |||||||||||||||||||||||
Distributions | (231,245) | — | (231,245) | |||||||||||||||||||||||
Equity-based incentive compensation expense | 1,169 | — | 1,169 | |||||||||||||||||||||||
Repurchases of common units | (49,968) | — | (49,968) | |||||||||||||||||||||||
Other | (211) | — | (211) | |||||||||||||||||||||||
Three Months Ended September 30, 2020 | $ | 2,551,748 | $ | (163,304) | $ | 2,388,444 | ||||||||||||||||||||
MAGELLAN MIDSTREAM PARTNERS, L.P. CONSOLIDATED STATEMENT OF PARTNERS’ CAPITAL (Continued) (Unaudited, in thousands) | ||||||||||||||||||||||||||
Common Unitholders | Accumulated Other Comprehensive Loss | Total Partners’ Capital | ||||||||||||||||||||||||
Balance, January 1, 2019 | $ | 2,763,925 | $ | (120,491) | $ | 2,643,434 | ||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||
Net income | 734,404 | — | 734,404 | |||||||||||||||||||||||
Total other comprehensive loss | — | (27,454) | (27,454) | |||||||||||||||||||||||
Total comprehensive income (loss) | 734,404 | (27,454) | 706,950 | |||||||||||||||||||||||
Distributions | (688,635) | — | (688,635) | |||||||||||||||||||||||
Equity-based incentive compensation expense | 22,577 | — | 22,577 | |||||||||||||||||||||||
Issuance of limited partner units in settlement of equity-based incentive plan awards | 480 | — | 480 | |||||||||||||||||||||||
Payments associated with settlement of equity-based incentive compensation | (9,764) | — | (9,764) | |||||||||||||||||||||||
Other | (586) | — | (586) | |||||||||||||||||||||||
Nine Months Ended September 30, 2019 | $ | 2,822,401 | $ | (147,945) | $ | 2,674,456 | ||||||||||||||||||||
Balance, January 1, 2020 | $ | 2,877,105 | $ | (162,077) | $ | 2,715,028 | ||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||
Net income | 633,045 | — | 633,045 | |||||||||||||||||||||||
Total other comprehensive loss | — | (1,227) | (1,227) | |||||||||||||||||||||||
Total comprehensive income (loss) | 633,045 | (1,227) | 631,818 | |||||||||||||||||||||||
Distributions | (697,264) | — | (697,264) | |||||||||||||||||||||||
Equity-based incentive compensation expense | 5,580 | — | 5,580 | |||||||||||||||||||||||
Repurchases of common units | (251,950) | — | (251,950) | |||||||||||||||||||||||
Issuance of limited partner units in settlement of equity-based incentive plan awards | 600 | — | 600 | |||||||||||||||||||||||
Payments associated with settlement of equity-based incentive compensation | (14,700) | — | (14,700) | |||||||||||||||||||||||
Other | (668) | — | (668) | |||||||||||||||||||||||
Nine Months Ended September 30, 2020 | $ | 2,551,748 | $ | (163,304) | $ | 2,388,444 | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2016 | 2017 | 2016 | 2017 | ||||||||||||
Physical sale of petroleum products | $ | 146,006 | $ | 168,346 | $ | 412,045 | $ | 553,076 | |||||||
Change in value of futures contracts | (12,650 | ) | (47,336 | ) | (8,438 | ) | (4,442 | ) | |||||||
Total product sales revenue | $ | 133,356 | $ | 121,010 | $ | 403,607 | $ | 548,634 |
Three Months Ended September 30, 2016 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
Refined Products | Crude Oil | Marine Storage | Intersegment Eliminations | Total | |||||||||||||||
Transportation and terminals revenue | $ | 267,339 | $ | 100,113 | $ | 46,182 | $ | (201 | ) | $ | 413,433 | ||||||||
Product sales revenue | 105,834 | 24,750 | 2,772 | — | 133,356 | ||||||||||||||
Affiliate management fee revenue | 218 | 4,416 | 359 | — | 4,993 | ||||||||||||||
Total revenue | 373,391 | 129,279 | 49,313 | (201 | ) | 551,782 | |||||||||||||
Operating expenses | 95,535 | 24,547 | 16,325 | (1,492 | ) | 134,915 | |||||||||||||
Cost of product sales | 93,761 | 24,108 | 373 | — | 118,242 | ||||||||||||||
(Earnings) losses of non-controlled entities | 272 | (18,180 | ) | (668 | ) | — | (18,576 | ) | |||||||||||
Operating margin | 183,823 | 98,804 | 33,283 | 1,291 | 317,201 | ||||||||||||||
Depreciation and amortization expense | 28,432 | 9,333 | 8,025 | 1,291 | 47,081 | ||||||||||||||
G&A expense | 22,853 | 8,445 | 4,286 | — | 35,584 | ||||||||||||||
Operating profit | $ | 132,538 | $ | 81,026 | $ | 20,972 | $ | — | $ | 234,536 |
Three Months Ended September 30, 2019 | |||||||||||||||||||||||||||||
Refined Products | Crude Oil | Intersegment Eliminations | Total | ||||||||||||||||||||||||||
Transportation and terminals revenue | $ | 352,611 | $ | 155,377 | $ | (1,556) | $ | 506,432 | |||||||||||||||||||||
Product sales revenue | 136,464 | 8,343 | 0 | 144,807 | |||||||||||||||||||||||||
Affiliate management fee revenue | 1,764 | 3,593 | 0 | 5,357 | |||||||||||||||||||||||||
Total revenue | 490,839 | 167,313 | (1,556) | 656,596 | |||||||||||||||||||||||||
Operating expenses | 127,328 | 44,961 | (2,902) | 169,387 | |||||||||||||||||||||||||
Cost of product sales | 100,416 | 8,341 | 0 | 108,757 | |||||||||||||||||||||||||
Other operating (income) expense | (3,249) | 3,628 | 0 | 379 | |||||||||||||||||||||||||
Earnings of non-controlled entities | (4,142) | (46,047) | 0 | (50,189) | |||||||||||||||||||||||||
Operating margin | 270,486 | 156,430 | 1,346 | 428,262 | |||||||||||||||||||||||||
Depreciation, amortization and impairment expense | 39,660 | 15,621 | 1,346 | 56,627 | |||||||||||||||||||||||||
G&A expense | 36,806 | 14,350 | 0 | 51,156 | |||||||||||||||||||||||||
Operating profit | $ | 194,020 | $ | 126,459 | $ | 0 | $ | 320,479 |
Three Months Ended September 30, 2020 | |||||||||||||||||||||||||||||
Refined Products | Crude Oil | Intersegment Eliminations | Total | ||||||||||||||||||||||||||
Transportation and terminals revenue | $ | 320,809 | $ | 154,652 | $ | (1,930) | $ | 473,531 | |||||||||||||||||||||
Product sales revenue | 114,252 | 5,193 | 0 | 119,445 | |||||||||||||||||||||||||
Affiliate management fee revenue | 1,579 | 3,709 | 0 | 5,288 | |||||||||||||||||||||||||
Total revenue | 436,640 | 163,554 | (1,930) | 598,264 | |||||||||||||||||||||||||
Operating expenses | 118,579 | 46,956 | (3,553) | 161,982 | |||||||||||||||||||||||||
Cost of product sales | 86,356 | 9,763 | 0 | 96,119 | |||||||||||||||||||||||||
Other operating (income) expense | (193) | 3,056 | 0 | 2,863 | |||||||||||||||||||||||||
Earnings of non-controlled entities | (7,134) | (32,001) | 0 | (39,135) | |||||||||||||||||||||||||
Operating margin | 239,032 | 135,780 | 1,623 | 376,435 | |||||||||||||||||||||||||
Depreciation, amortization and impairment expense | 41,620 | 28,579 | 1,623 | 71,822 | |||||||||||||||||||||||||
G&A expense | 27,487 | 10,529 | 0 | 38,016 | |||||||||||||||||||||||||
Operating profit | $ | 169,925 | $ | 96,672 | $ | 0 | $ | 266,597 |
Three Months Ended September 30, 2017 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
Refined Products | Crude Oil | Marine Storage | Intersegment Eliminations | Total | |||||||||||||||
Transportation and terminals revenue | $ | 289,030 | $ | 116,305 | $ | 42,501 | $ | (901 | ) | $ | 446,935 | ||||||||
Product sales revenue | 107,175 | 12,370 | 1,465 | — | 121,010 | ||||||||||||||
Affiliate management fee revenue | 353 | 3,703 | 847 | — | 4,903 | ||||||||||||||
Total revenue | 396,558 | 132,378 | 44,813 | (901 | ) | 572,848 | |||||||||||||
Operating expenses | 118,665 | 31,163 | 17,723 | (2,183 | ) | 165,368 | |||||||||||||
Cost of product sales | 103,391 | 16,630 | 1,798 | — | 121,819 | ||||||||||||||
(Earnings) losses of non-controlled entities | 700 | (31,244 | ) | (607 | ) | — | (31,151 | ) | |||||||||||
Operating margin | 173,802 | 115,829 | 25,899 | 1,282 | 316,812 | ||||||||||||||
Depreciation and amortization expense | 27,469 | 12,584 | 8,574 | 1,282 | 49,909 | ||||||||||||||
G&A expense | 23,808 | 9,266 | 4,128 | — | 37,202 | ||||||||||||||
Operating profit | $ | 122,525 | $ | 93,979 | $ | 13,197 | $ | — | $ | 229,701 |
Nine Months Ended September 30, 2016 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
Refined Products | Crude Oil | Marine Storage | Intersegment Eliminations | Total | |||||||||||||||
Transportation and terminals revenue | $ | 739,931 | $ | 303,181 | $ | 132,837 | $ | (201 | ) | $ | 1,175,748 | ||||||||
Product sales revenue | 372,061 | 26,465 | 5,081 | — | 403,607 | ||||||||||||||
Affiliate management fee revenue | 422 | 9,686 | 1,032 | — | 11,140 | ||||||||||||||
Total revenue | 1,112,414 | 339,332 | 138,950 | (201 | ) | 1,590,495 | |||||||||||||
Operating expenses | 279,822 | 66,228 | 49,808 | (3,847 | ) | 392,011 | |||||||||||||
Cost of product sales | 300,009 | 26,469 | 1,052 | — | 327,530 | ||||||||||||||
(Earnings) losses of non-controlled entities | 352 | (49,870 | ) | (2,025 | ) | — | (51,543 | ) | |||||||||||
Operating margin | 532,231 | 296,505 | 90,115 | 3,646 | 922,497 | ||||||||||||||
Depreciation and amortization expense | 78,523 | 28,264 | 23,704 | 3,646 | 134,137 | ||||||||||||||
G&A expense | 68,589 | 27,333 | 14,892 | — | 110,814 | ||||||||||||||
Operating profit | $ | 385,119 | $ | 240,908 | $ | 51,519 | $ | — | $ | 677,546 | |||||||||
Nine Months Ended September 30, 2019 | |||||||||||||||||||||||||||||
Refined Products | Crude Oil | Intersegment Eliminations | Total | ||||||||||||||||||||||||||
Transportation and terminals revenue | $ | 1,009,812 | $ | 467,652 | $ | (3,835) | $ | 1,473,629 | |||||||||||||||||||||
Product sales revenue | 478,441 | 19,350 | 0 | 497,791 | |||||||||||||||||||||||||
Affiliate management fee revenue | 5,085 | 10,725 | 0 | 15,810 | |||||||||||||||||||||||||
Total revenue | 1,493,338 | 497,727 | (3,835) | 1,987,230 | |||||||||||||||||||||||||
Operating expenses | 362,870 | 129,431 | (7,960) | 484,341 | |||||||||||||||||||||||||
Cost of product sales | 411,012 | 19,715 | 0 | 430,727 | |||||||||||||||||||||||||
Other operating (income) expense | (9,648) | 8,110 | 0 | (1,538) | |||||||||||||||||||||||||
Earnings of non-controlled entities | (145) | (122,084) | 0 | (122,229) | |||||||||||||||||||||||||
Operating margin | 729,249 | 462,555 | 4,125 | 1,195,929 | |||||||||||||||||||||||||
Depreciation, amortization and impairment expense | 128,724 | 48,179 | 4,125 | 181,028 | |||||||||||||||||||||||||
G&A expense | 107,179 | 42,355 | 0 | 149,534 | |||||||||||||||||||||||||
Operating profit | $ | 493,346 | $ | 372,021 | $ | 0 | $ | 865,367 | |||||||||||||||||||||
Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||||||
Refined Products | Crude Oil | Intersegment Eliminations | Total | ||||||||||||||||||||||||||
Transportation and terminals revenue | $ | 914,887 | $ | 433,947 | $ | (5,093) | $ | 1,343,741 | |||||||||||||||||||||
Product sales revenue | 461,701 | 20,141 | 0 | 481,842 | |||||||||||||||||||||||||
Affiliate management fee revenue | 4,676 | 11,219 | 0 | 15,895 | |||||||||||||||||||||||||
Total revenue | 1,381,264 | 465,307 | (5,093) | 1,841,478 | |||||||||||||||||||||||||
Operating expenses | 327,866 | 139,645 | (9,914) | 457,597 | |||||||||||||||||||||||||
Cost of product sales | 365,314 | 30,550 | 0 | 395,864 | |||||||||||||||||||||||||
Other operating (income) expense | (2,223) | 1,684 | 0 | (539) | |||||||||||||||||||||||||
Earnings of non-controlled entities | (25,946) | (90,538) | 0 | (116,484) | |||||||||||||||||||||||||
Operating margin | 716,253 | 383,966 | 4,821 | 1,105,040 | |||||||||||||||||||||||||
Depreciation, amortization and impairment expense | 128,708 | 60,367 | 4,821 | 193,896 | |||||||||||||||||||||||||
G&A expense | 84,802 | 32,290 | 0 | 117,092 | |||||||||||||||||||||||||
Operating profit | $ | 502,743 | $ | 291,309 | $ | 0 | $ | 794,052 | |||||||||||||||||||||
Nine Months Ended September 30, 2017 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
Refined Products | Crude Oil | Marine Storage | Intersegment Eliminations | Total | |||||||||||||||
Transportation and terminals revenue | $ | 808,818 | $ | 329,813 | $ | 136,702 | $ | (2,488 | ) | $ | 1,272,845 | ||||||||
Product sales revenue | 509,068 | 34,876 | 4,690 | — | 548,634 | ||||||||||||||
Affiliate management fee revenue | 1,035 | 10,311 | 1,537 | — | 12,883 | ||||||||||||||
Total revenue | 1,318,921 | 375,000 | 142,929 | (2,488 | ) | 1,834,362 | |||||||||||||
Operating expenses | 312,911 | 89,991 | 45,753 | (6,401 | ) | 442,254 | |||||||||||||
Cost of product sales | 396,292 | 37,814 | 6,564 | — | 440,670 | ||||||||||||||
(Earnings) losses of non-controlled entities | 167 | (76,388 | ) | (1,952 | ) | — | (78,173 | ) | |||||||||||
Operating margin | 609,551 | 323,583 | 92,564 | 3,913 | 1,029,611 | ||||||||||||||
Depreciation and amortization expense | 81,440 | 35,947 | 24,803 | 3,913 | 146,103 | ||||||||||||||
G&A expense | 75,429 | 30,376 | 15,071 | — | 120,876 | ||||||||||||||
Operating profit | $ | 452,682 | $ | 257,260 | $ | 52,690 | $ | — | $ | 762,632 | |||||||||
Three Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||
Refined Products | Crude Oil | Intersegment Eliminations | Total | |||||||||||||||||||||||||||||
Transportation | $ | 208,073 | $ | 95,530 | $ | 0 | $ | 303,603 | ||||||||||||||||||||||||
Terminalling | 48,428 | 3,176 | 0 | 51,604 | ||||||||||||||||||||||||||||
Storage | 53,433 | 30,037 | (1,556) | 81,914 | ||||||||||||||||||||||||||||
Ancillary services | 36,375 | 7,278 | 0 | 43,653 | ||||||||||||||||||||||||||||
Lease revenue | 6,302 | 19,356 | 0 | 25,658 | ||||||||||||||||||||||||||||
Transportation and terminals revenue | 352,611 | 155,377 | (1,556) | 506,432 | ||||||||||||||||||||||||||||
Product sales revenue | 136,464 | 8,343 | 0 | 144,807 | ||||||||||||||||||||||||||||
Affiliate management fee revenue | 1,764 | 3,593 | 0 | 5,357 | ||||||||||||||||||||||||||||
Total revenue | 490,839 | 167,313 | (1,556) | 656,596 | ||||||||||||||||||||||||||||
Revenue not under the guidance of ASC 606, Revenue from Contracts with Customers: | ||||||||||||||||||||||||||||||||
Lease revenue(1) | (6,302) | (19,356) | 0 | (25,658) | ||||||||||||||||||||||||||||
(Gains) losses from futures contracts included in product sales revenue(2) | (17,061) | (564) | 0 | (17,625) | ||||||||||||||||||||||||||||
Affiliate management fee revenue | (1,764) | (3,593) | 0 | (5,357) | ||||||||||||||||||||||||||||
Total revenue from contracts with customers under ASC 606 | $ | 465,712 | $ | 143,800 | $ | (1,556) | $ | 607,956 |
Three Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||
Refined Products | Crude Oil | Intersegment Eliminations | Total | |||||||||||||||||||||||||||||
Transportation | $ | 192,194 | $ | 90,156 | $ | 0 | $ | 282,350 | ||||||||||||||||||||||||
Terminalling | 41,227 | 5,651 | 0 | 46,878 | ||||||||||||||||||||||||||||
Storage | 49,366 | 32,876 | (1,930) | 80,312 | ||||||||||||||||||||||||||||
Ancillary services | 32,707 | 6,828 | 0 | 39,535 | ||||||||||||||||||||||||||||
Lease revenue | 5,315 | 19,141 | 0 | 24,456 | ||||||||||||||||||||||||||||
Transportation and terminals revenue | 320,809 | 154,652 | (1,930) | 473,531 | ||||||||||||||||||||||||||||
Product sales revenue | 114,252 | 5,193 | 0 | 119,445 | ||||||||||||||||||||||||||||
Affiliate management fee revenue | 1,579 | 3,709 | 0 | 5,288 | ||||||||||||||||||||||||||||
Total revenue | 436,640 | 163,554 | (1,930) | 598,264 | ||||||||||||||||||||||||||||
Revenue not under the guidance of ASC 606, Revenue from Contracts with Customers: | ||||||||||||||||||||||||||||||||
Lease revenue(1) | (5,315) | (19,141) | 0 | (24,456) | ||||||||||||||||||||||||||||
(Gains) losses from futures contracts included in product sales revenue(2) | 6,850 | 884 | 0 | 7,734 | ||||||||||||||||||||||||||||
Affiliate management fee revenue | (1,579) | (3,709) | 0 | (5,288) | ||||||||||||||||||||||||||||
Total revenue from contracts with customers under ASC 606 | $ | 436,596 | $ | 141,588 | $ | (1,930) | $ | 576,254 |
Nine Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||
Refined Products | Crude Oil | Intersegment Eliminations | Total | |||||||||||||||||||||||||||||
Transportation | $ | 584,662 | $ | 290,754 | $ | 0 | $ | 875,416 | ||||||||||||||||||||||||
Terminalling | 138,968 | 13,146 | 0 | 152,114 | ||||||||||||||||||||||||||||
Storage | 162,139 | 89,313 | (3,835) | 247,617 | ||||||||||||||||||||||||||||
Ancillary services | 103,287 | 20,488 | 0 | 123,775 | ||||||||||||||||||||||||||||
Lease revenue | 20,756 | 53,951 | 0 | 74,707 | ||||||||||||||||||||||||||||
Transportation and terminals revenue | 1,009,812 | 467,652 | (3,835) | 1,473,629 | ||||||||||||||||||||||||||||
Product sales revenue | 478,441 | 19,350 | 0 | 497,791 | ||||||||||||||||||||||||||||
Affiliate management fee revenue | 5,085 | 10,725 | 0 | 15,810 | ||||||||||||||||||||||||||||
Total revenue | 1,493,338 | 497,727 | (3,835) | 1,987,230 | ||||||||||||||||||||||||||||
Revenue not under the guidance of ASC 606, Revenue from Contracts with Customers: | ||||||||||||||||||||||||||||||||
Lease revenue(1) | (20,756) | (53,951) | 0 | (74,707) | ||||||||||||||||||||||||||||
(Gains) losses from futures contracts included in product sales revenue(2) | 39,761 | 1,743 | 0 | 41,504 | ||||||||||||||||||||||||||||
Affiliate management fee revenue | (5,085) | (10,725) | 0 | (15,810) | ||||||||||||||||||||||||||||
Total revenue from contracts with customers under ASC 606 | $ | 1,507,258 | $ | 434,794 | $ | (3,835) | $ | 1,938,217 | ||||||||||||||||||||||||
Nine Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||
Refined Products | Crude Oil | Intersegment Eliminations | Total | |||||||||||||||||||||||||||||
Transportation | $ | 533,451 | $ | 244,154 | $ | 0 | $ | 777,605 | ||||||||||||||||||||||||
Terminalling | 117,916 | 14,702 | 0 | 132,618 | ||||||||||||||||||||||||||||
Storage | 152,933 | 97,103 | (5,093) | 244,943 | ||||||||||||||||||||||||||||
Ancillary services | 93,340 | 20,746 | 0 | 114,086 | ||||||||||||||||||||||||||||
Lease revenue | 17,247 | 57,242 | 0 | 74,489 | ||||||||||||||||||||||||||||
Transportation and terminals revenue | 914,887 | 433,947 | (5,093) | 1,343,741 | ||||||||||||||||||||||||||||
Product sales revenue | 461,701 | 20,141 | 0 | 481,842 | ||||||||||||||||||||||||||||
Affiliate management fee revenue | 4,676 | 11,219 | 0 | 15,895 | ||||||||||||||||||||||||||||
Total revenue | 1,381,264 | 465,307 | (5,093) | 1,841,478 | ||||||||||||||||||||||||||||
Revenue not under the guidance of ASC 606, Revenue from Contracts with Customers: | ||||||||||||||||||||||||||||||||
Lease revenue(1) | (17,247) | (57,242) | 0 | (74,489) | ||||||||||||||||||||||||||||
(Gains) losses from futures contracts included in product sales revenue(2) | (89,763) | 483 | 0 | (89,280) | ||||||||||||||||||||||||||||
Affiliate management fee revenue | (4,676) | (11,219) | 0 | (15,895) | ||||||||||||||||||||||||||||
Total revenue from contracts with customers under ASC 606 | $ | 1,269,578 | $ | 397,329 | $ | (5,093) | $ | 1,661,814 | ||||||||||||||||||||||||
December 31, 2019 | September 30, 2020 | |||||||||||||
Accounts receivable from contracts with customers | $ | 124,701 | $ | 107,317 | ||||||||||
Contract assets | $ | 8,071 | $ | 13,834 | ||||||||||
Contract liabilities | $ | 111,670 | $ | 94,865 |
Refined Products | Crude Oil | Total | ||||||||||||||||||||||||
Balances at September 30, 2020 | $ | 2,137,259 | $ | 1,276,836 | $ | 3,414,095 | ||||||||||||||||||||
Remaining terms | 1 - 18 years | 1 - 11 years | ||||||||||||||||||||||||
Estimated revenues from UPOs to be recognized in the next 12 months | $ | 407,914 | $ | 269,156 | $ | 677,070 |
Entity | Ownership Interest | |||||||
BridgeTex Pipeline Company, LLC (“BridgeTex”) | ||||||||
Double Eagle Pipeline LLC (“Double Eagle”) | 50% | |||||||
HoustonLink Pipeline Company, LLC (“HoustonLink”) | 50% | |||||||
MVP Terminalling, LLC (“MVP”) | 50% | |||||||
Powder Springs Logistics, LLC (“Powder Springs”) | 50% | |||||||
Saddlehorn Pipeline Company, LLC (“Saddlehorn”) | ||||||||
Seabrook Logistics, LLC (“Seabrook”) | 50% | |||||||
Texas Frontera, LLC (“Texas Frontera”) | 50% |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2019 | 2020 | 2019 | 2020 | |||||||||||||||||||||||
Transportation and terminals revenue: | ||||||||||||||||||||||||||
BridgeTex, pipeline capacity and storage | $ | 10,737 | $ | 9,323 | $ | 31,063 | $ | 32,748 | ||||||||||||||||||
Double Eagle, throughput revenue | $ | 1,582 | $ | 995 | $ | 4,813 | $ | 4,016 | ||||||||||||||||||
Saddlehorn, storage revenue | $ | 566 | $ | 580 | $ | 1,669 | $ | 1,711 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Seabrook, storage lease and ancillary services | $ | 6,267 | $ | 7,175 | $ | 19,417 | $ | 21,553 | ||||||||||||||||||
Other operating income: | ||||||||||||||||||||||||||
Seabrook, gain on sale of air emission credits | $ | 0 | $ | 0 | $ | 0 | $ | 1,410 | ||||||||||||||||||
MVP, easement sale | $ | 289 | $ | 0 | $ | 289 | $ | 0 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2016 | 2017 | 2016 | 2017 | |||||||||||||
Transportation and terminals revenue: | ||||||||||||||||
BridgeTex, capacity lease | $ | 8.9 | $ | 9.1 | $ | 26.6 | $ | 27.0 | ||||||||
Double Eagle, throughput revenue | $ | 0.9 | $ | 1.3 | $ | 2.5 | $ | 3.1 | ||||||||
Saddlehorn, storage revenue | $ | — | $ | 0.5 | $ | — | $ | 1.6 |
December 31, 2019 | ||||||||||||||||||||||||||
Trade Accounts Receivable | Other Accounts Receivable | Other Accounts Payable | Long-Term Receivables | |||||||||||||||||||||||
BridgeTex | $ | 392 | $ | 26 | $ | — | $ | — | ||||||||||||||||||
Double Eagle | $ | 445 | $ | — | $ | — | $ | — | ||||||||||||||||||
HoustonLink | $ | 60 | $ | — | $ | — | $ | — | ||||||||||||||||||
MVP | $ | — | $ | 418 | $ | — | $ | — | ||||||||||||||||||
Powder Springs | $ | 161 | $ | — | $ | — | $ | 6,006 | ||||||||||||||||||
Saddlehorn | $ | — | $ | 126 | $ | — | $ | — | ||||||||||||||||||
Seabrook | $ | 941 | $ | — | $ | 1,349 | $ | — |
September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||
December 31, 2016 | September 30, 2017 | Trade Accounts Receivable | Other Accounts Receivable | Other Accounts Payable | Long-Term Receivables | |||||||||||||||||||||||||||||||||||||
BridgeTex | BridgeTex | $ | 382 | $ | 441 | $ | 225 | $ | — | |||||||||||||||||||||||||||||||||
Double Eagle | Double Eagle | $ | 286 | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||
Trade Accounts Receivable | Other Accounts Receivable | Trade Accounts Receivable | Other Accounts Receivable | |||||||||||||||||||||||||||||||||||||||
Double Eagle | $ | 0.3 | $ | — | $ | 0.5 | $ | — | ||||||||||||||||||||||||||||||||||
MVP | $ | — | $ | — | $ | — | $ | 0.5 | MVP | $ | — | $ | 460 | $ | — | $ | — | |||||||||||||||||||||||||
Powder Springs | Powder Springs | $ | — | $ | — | $ | — | $ | 8,970 | |||||||||||||||||||||||||||||||||
Saddlehorn | $ | — | $ | 0.1 | $ | — | $ | 0.1 | Saddlehorn | $ | — | $ | 142 | $ | — | $ | — | |||||||||||||||||||||||||
Seabrook | Seabrook | $ | 497 | $ | — | $ | 4,267 | $ | — |
Investments at December 31, 2016 | $ | 931,255 | ||
Additional investment(1) | 207,941 | |||
Earnings of non-controlled entities: | ||||
Proportionate share of earnings | 79,949 | |||
Amortization of excess investment and capitalized interest | (1,776 | ) | ||
Earnings of non-controlled entities | 78,173 | |||
Less: | ||||
Distributions of earnings from investments in non-controlled entities | 78,562 | |||
Distributions in excess of earnings of non-controlled entities(2) | 71,867 | |||
Investments at September 30, 2017 | $ | 1,066,940 | ||
Investments at 12/31/2019 | $ | 1,240,551 | ||||||
Additional investment | 73,678 | |||||||
Sale of ownership interest in Saddlehorn | (66,989) | |||||||
Earnings of non-controlled entities: | ||||||||
Proportionate share of earnings | 117,848 | |||||||
Amortization of excess investment and capitalized interest | (1,364) | |||||||
Earnings of non-controlled entities | 116,484 | |||||||
Less: | ||||||||
Distributions from operations of non-controlled entities | 152,645 | |||||||
Investments at 9/30/2020 | $ | 1,211,079 | ||||||
December 31, 2019 | September 30, 2020 | ||||||||||
Refined products | $ | 96,128 | $ | 60,515 | |||||||
Liquefied petroleum gases | 29,982 | 30,155 | |||||||||
Transmix | 39,546 | 20,821 | |||||||||
Crude oil | 12,714 | 12,872 | |||||||||
Additives | 6,029 | 4,670 | |||||||||
Total inventory | $ | 184,399 | $ | 129,033 |
December 31, 2016 | September 30, 2017 | ||||||
Refined products | $ | 54,285 | $ | 51,667 | |||
Transmix | 28,319 | 45,160 | |||||
Liquefied petroleum gases | 24,868 | 51,540 | |||||
Crude oil | 20,839 | 13,884 | |||||
Additives | 6,067 | 6,511 | |||||
Total inventory | $ | 134,378 | $ | 168,762 |
Three Months Ended | Three Months Ended | ||||||||||||||
September 30, 2016 | September 30, 2017 | ||||||||||||||
Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | ||||||||||||
Components of net periodic benefit costs: | |||||||||||||||
Service cost | $ | 4,555 | $ | 53 | $ | 5,125 | $ | 51 | |||||||
Interest cost(1) | 1,992 | 148 | 2,466 | 111 | |||||||||||
Expected return on plan assets(1) | (2,235 | ) | — | (2,566 | ) | — | |||||||||
Amortization of prior service credit(1) | (45 | ) | (928 | ) | (45 | ) | — | ||||||||
Amortization of actuarial loss(1) | 1,161 | 291 | 1,406 | 162 | |||||||||||
Settlement cost(1) | 202 | — | 289 | — | |||||||||||
Net periodic benefit cost (credit) | $ | 5,630 | $ | (436 | ) | $ | 6,675 | $ | 324 |
Nine Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2016 | September 30, 2017 | ||||||||||||||
Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | ||||||||||||
Components of net periodic benefit costs: | |||||||||||||||
Service cost | $ | 13,648 | $ | 176 | $ | 15,373 | $ | 182 | |||||||
Interest cost(1) | 5,970 | 368 | 7,398 | 356 | |||||||||||
Expected return on plan assets(1) | (6,694 | ) | — | (7,699 | ) | — | |||||||||
Amortization of prior service credit(1) | (135 | ) | (2,785 | ) | (136 | ) | — | ||||||||
Amortization of actuarial loss(1) | 3,485 | 660 | 4,217 | 562 | |||||||||||
Settlement cost(1) | 202 | — | 2,015 | — | |||||||||||
Net periodic benefit cost (credit) | $ | 16,476 | $ | (1,581 | ) | $ | 21,168 | $ | 1,100 | ||||||
Three Months Ended | Three Months Ended | |||||||||||||||
September 30, 2016 | September 30, 2017 | |||||||||||||||
Gains (Losses) Included in AOCL | Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | ||||||||||||
Beginning balance | $ | (60,045 | ) | $ | (5,433 | ) | $ | (54,138 | ) | $ | (7,481 | ) | ||||
Amortization of prior service credit | (45 | ) | (928 | ) | (45 | ) | — | |||||||||
Amortization of actuarial loss | 1,161 | 291 | 1,406 | 162 | ||||||||||||
Settlement cost | 202 | — | 289 | — | ||||||||||||
Ending balance | $ | (58,727 | ) | $ | (6,070 | ) | $ | (52,488 | ) | $ | (7,319 | ) |
Nine Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2016 | September 30, 2017 | |||||||||||||||
Gains (Losses) Included in AOCL | Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | ||||||||||||
Beginning balance | $ | (62,279 | ) | $ | (3,945 | ) | $ | (58,584 | ) | $ | (7,881 | ) | ||||
Amortization of prior service credit | (135 | ) | (2,785 | ) | (136 | ) | — | |||||||||
Amortization of actuarial loss | 3,485 | 660 | 4,217 | 562 | ||||||||||||
Settlement cost | 202 | — | 2,015 | — | ||||||||||||
Ending balance | $ | (58,727 | ) | $ | (6,070 | ) | $ | (52,488 | ) | $ | (7,319 | ) | ||||
December 31, 2019 | September 30, 2020 | |||||||||||||
Commercial paper | $ | 0 | $ | 248,000 | ||||||||||
4.25% Notes due 2021 | 550,000 | 0 | ||||||||||||
3.20% Notes due 2025 | 250,000 | 250,000 | ||||||||||||
5.00% Notes due 2026 | 650,000 | 650,000 | ||||||||||||
3.25% Notes due 2030 | 0 | 500,000 | ||||||||||||
6.40% Notes due 2037 | 250,000 | 250,000 | ||||||||||||
4.20% Notes due 2042 | 250,000 | 250,000 | ||||||||||||
5.15% Notes due 2043 | 550,000 | 550,000 | ||||||||||||
4.20% Notes due 2045 | 250,000 | 250,000 | ||||||||||||
4.25% Notes due 2046 | 500,000 | 500,000 | ||||||||||||
4.20% Notes due 2047 | 500,000 | 500,000 | ||||||||||||
4.85% Notes due 2049 | 500,000 | 500,000 | ||||||||||||
3.95% Notes due 2050 | 500,000 | 500,000 | ||||||||||||
Face value of long-term debt | 4,750,000 | 4,948,000 | ||||||||||||
Unamortized debt issuance costs(1) | (35,263) | (37,407) | ||||||||||||
Net unamortized debt discount(1) | (8,662) | (10,282) | ||||||||||||
Long-term debt, net | $ | 4,706,075 | $ | 4,900,311 | ||||||||||
December 31, 2016 | September 30, 2017 | |||||||
Commercial paper | $ | 50,000 | $ | 269,000 | ||||
6.40% Notes due 2018 | 250,000 | 250,000 | ||||||
6.55% Notes due 2019 | 550,000 | 550,000 | ||||||
4.25% Notes due 2021 | 550,000 | 550,000 | ||||||
3.20% Notes due 2025 | 250,000 | 250,000 | ||||||
5.00% Notes due 2026 | 650,000 | 650,000 | ||||||
6.40% Notes due 2037 | 250,000 | 250,000 | ||||||
4.20% Notes due 2042 | 250,000 | 250,000 | ||||||
5.15% Notes due 2043 | 550,000 | 550,000 | ||||||
4.20% Notes due 2045 | 250,000 | 250,000 | ||||||
4.25% Notes due 2046 | 500,000 | 500,000 | ||||||
Face value of long-term debt | 4,100,000 | 4,319,000 | ||||||
Unamortized debt issuance costs(1) | (26,948 | ) | (25,106 | ) | ||||
Net unamortized debt premium(1) | 6,530 | 4,241 | ||||||
Net unamortized amount of gains from historical fair value hedges(1) | 7,610 | 4,715 | ||||||
Long-term debt, net, including current portion | 4,087,192 | 4,302,850 | ||||||
Less: Current portion of long-term debt, net | — | 251,439 | ||||||
Long-term debt, net | $ | 4,087,192 | $ | 4,051,411 | ||||
Three Months Ended September 30, 2019 | Three Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||
Third-Party Leases | Seabrook Lease | All Leases | Third-Party Leases | Seabrook Lease | All Leases | |||||||||||||||||||||||||||||||||
Total lease expense | $ | 6,206 | $ | 6,267 | $ | 12,473 | $ | 6,474 | $ | 7,175 | $ | 13,649 | ||||||||||||||||||||||||||
Nine Months Ended September 30, 2019 | Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||
Third-Party Leases | Seabrook Lease | All Leases | Third-Party Leases | Seabrook Lease | All Leases | |||||||||||||||||||||||||||||||||
Total lease expense | $ | 17,631 | $ | 19,417 | $ | 37,048 | $ | 18,173 | $ | 21,553 | $ | 39,726 | ||||||||||||||||||||||||||
December 31, 2019 | September 30, 2020 | |||||||||||||||||||||||||||||||||||||
Third-Party Leases | Seabrook Lease | All Leases | Third-Party Leases | Seabrook Lease | All Leases | |||||||||||||||||||||||||||||||||
Current lease liability | $ | 15,136 | $ | 11,085 | $ | 26,221 | $ | 15,721 | $ | 11,456 | $ | 27,177 | ||||||||||||||||||||||||||
Long-term lease liability | $ | 81,508 | $ | 62,515 | $ | 144,023 | $ | 67,323 | $ | 54,441 | $ | 121,764 | ||||||||||||||||||||||||||
Right-of-use asset | $ | 98,268 | $ | 73,600 | $ | 171,868 | $ | 86,185 | $ | 65,897 | $ | 152,082 | ||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||
September 30, 2019 | September 30, 2020 | ||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||
Components of net periodic benefit costs: | |||||||||||||||||||||||
Service cost | $ | 6,260 | $ | 48 | $ | 6,898 | $ | 64 | |||||||||||||||
Interest cost | 3,026 | 126 | 2,738 | 121 | |||||||||||||||||||
Expected return on plan assets | (2,354) | 0 | (2,829) | 0 | |||||||||||||||||||
Amortization of prior service credit | (46) | 0 | (46) | 0 | |||||||||||||||||||
Amortization of actuarial loss | 1,352 | 60 | 1,346 | 127 | |||||||||||||||||||
Settlement cost | 439 | 0 | 0 | 0 | |||||||||||||||||||
Net periodic benefit cost | $ | 8,677 | $ | 234 | $ | 8,107 | $ | 312 |
Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, 2019 | September 30, 2020 | ||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||
Components of net periodic benefit costs: | |||||||||||||||||||||||
Service cost | $ | 19,145 | $ | 145 | $ | 20,836 | $ | 193 | |||||||||||||||
Interest cost | 9,136 | 380 | 8,251 | 360 | |||||||||||||||||||
Expected return on plan assets | (7,045) | 0 | (8,524) | 0 | |||||||||||||||||||
Amortization of prior service credit | (136) | 0 | (136) | 0 | |||||||||||||||||||
Amortization of actuarial loss | 4,137 | 248 | 4,080 | 382 | |||||||||||||||||||
Settlement cost | 2,499 | 0 | 969 | 0 | |||||||||||||||||||
Settlement gain on disposition of assets | 0 | 0 | (1,342) | 0 | |||||||||||||||||||
Net periodic benefit cost | $ | 27,736 | $ | 773 | $ | 24,134 | $ | 935 | |||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||
September 30, 2019 | September 30, 2020 | |||||||||||||||||||||||||
Gains (Losses) Included in AOCL | Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||
Beginning balance | $ | (93,876) | $ | (6,105) | $ | (98,610) | $ | (9,269) | ||||||||||||||||||
Recognition of prior service credit amortization in income | (46) | 0 | (46) | 0 | ||||||||||||||||||||||
Recognition of actuarial loss amortization in income | 1,352 | 60 | 1,346 | 127 | ||||||||||||||||||||||
Recognition of settlement cost in income | 439 | 0 | 0 | 0 | ||||||||||||||||||||||
Ending balance | $ | (92,131) | $ | (6,045) | $ | (97,310) | $ | (9,142) |
Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, 2019 | September 30, 2020 | |||||||||||||||||||||||||
Gains (Losses) Included in AOCL | Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||
Beginning balance | $ | (88,602) | $ | (5,409) | $ | (104,739) | $ | (8,378) | ||||||||||||||||||
Net actuarial gain (loss) | (10,029) | (884) | 813 | (1,146) | ||||||||||||||||||||||
Curtailment gain | 0 | 0 | 1,703 | 0 | ||||||||||||||||||||||
Recognition of prior service credit amortization in income | (136) | 0 | (136) | 0 | ||||||||||||||||||||||
Recognition of actuarial loss amortization in income | 4,137 | 248 | 4,080 | 382 | ||||||||||||||||||||||
Recognition of settlement cost in income | 2,499 | 0 | 969 | 0 | ||||||||||||||||||||||
Ending balance | $ | (92,131) | $ | (6,045) | $ | (97,310) | $ | (9,142) | ||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2019 | 2020 | 2019 | 2020 | |||||||||||||||||||||||
Performance-based awards | $ | 5,162 | $ | (1,121) | $ | 18,123 | $ | (1,247) | ||||||||||||||||||
Time-based awards | 1,611 | 2,290 | 4,454 | 6,827 | ||||||||||||||||||||||
Total | $ | 6,773 | $ | 1,169 | $ | 22,577 | $ | 5,580 | ||||||||||||||||||
Type of Contract/Accounting Methodology | Product Represented by the Contract and Associated Barrels | Maturity Dates | ||||||||||||
Futures - Economic Hedges | 3.1 million barrels of refined products and crude oil | Between October 2020 and November 2022 | ||||||||||||
Futures - Economic Hedges | 0.6 million barrels of gas liquids | Between October and December 2020 |
Description | Gross Amounts of Recognized Liabilities | Gross Amounts of Assets Offset in the Consolidated Balance Sheets | Net Amounts of Liabilities Presented in the Consolidated Balance Sheets | Margin Deposit Amounts Not Offset in the Consolidated Balance Sheets | Net Asset Amount(1) | |||||||||||||||||||||||||||
As of 12/31/2019 | $ | (11,033) | $ | 811 | $ | (10,222) | $ | 27,415 | $ | 17,193 | ||||||||||||||||||||||
As of 9/30/2020 | $ | (4,386) | $ | 2,740 | $ | (1,646) | $ | 14,031 | $ | 12,385 | ||||||||||||||||||||||
December 31, 2016 | ||||||||||||||||||||
Description | Gross Amounts of Recognized Liabilities | Gross Amounts of Assets Offset in the Consolidated Balance Sheets | Net Amounts of Liabilities Presented in the Consolidated Balance Sheets | Margin Deposit Amounts Not Offset in the Consolidated Balance Sheets | Net Asset Amount(1) | |||||||||||||||
Energy commodity derivatives | $ | (36,798 | ) | $ | 6,060 | $ | (30,738 | ) | $ | 49,899 | $ | 19,161 | ||||||||
September 30, 2017 | ||||||||||||||||||||
Description | Gross Amounts of Recognized Liabilities | Gross Amounts of Assets Offset in the Consolidated Balance Sheets | Net Amounts of Liabilities Presented in the Consolidated Balance Sheets | Margin Deposit Amounts Not Offset in the Consolidated Balance Sheets | Net Asset Amount(1) | |||||||||||||||
Energy commodity derivatives | $ | (32,685 | ) | $ | 18,976 | $ | (13,709 | ) | $ | 31,735 | $ | 18,026 | ||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||||||||||||
Derivative Losses Included in AOCL | 2016 | 2017 | 2016 | 2017 | Derivative Losses Included in AOCL | 2019 | 2020 | 2019 | 2020 | |||||||||||||||||||||||||||||
Beginning balance | $ | (50,459 | ) | $ | (34,804 | ) | $ | (30,126 | ) | $ | (34,776 | ) | Beginning balance | $ | (36,287) | $ | (57,748) | $ | (26,480) | $ | (48,960) | |||||||||||||||||
Net gain (loss) on cash flow hedges | (3,169 | ) | (228 | ) | (24,278 | ) | (1,735 | ) | ||||||||||||||||||||||||||||||
Net loss on cash flow hedges | Net loss on cash flow hedges | (14,181) | 0 | (25,216) | (10,444) | |||||||||||||||||||||||||||||||||
Reclassification of net loss on cash flow hedges to income | 512 | 740 | 1,288 | 2,219 | Reclassification of net loss on cash flow hedges to income | 699 | 896 | 1,927 | 2,552 | |||||||||||||||||||||||||||||
Ending balance | $ | (53,116 | ) | $ | (34,292 | ) | $ | (53,116 | ) | $ | (34,292 | ) | Ending balance | $ | (49,769) | $ | (56,852) | $ | (49,769) | $ | (56,852) |
Interest Rate Contracts | ||||||||||||||||||||
Amount of Loss Recognized in AOCL on Derivatives | Location of Loss Reclassified from AOCL into Income | Amount of Loss Reclassified from AOCL into Income | ||||||||||||||||||
Three Months Ended September 30, 2019 | $ | (14,181) | Interest expense | $ | (699) | |||||||||||||||
Three Months Ended September 30, 2020 | $ | 0 | Interest expense | $ | (896) | |||||||||||||||
Nine Months Ended September 30, 2019 | $ | (25,216) | Interest expense | $ | (1,927) | |||||||||||||||
Nine Months Ended September 30, 2020 | $ | (10,444) | Interest expense | $ | (2,552) |
Interest Rate Contracts | ||||||||||||||
Amount of Loss Recognized in AOCL on Derivative | Location of Loss Reclassified from AOCL into Income | Amount of Loss Reclassified from AOCL into Income | ||||||||||||
Effective Portion | Ineffective Portion | |||||||||||||
Three Months Ended September 30, 2016 | $ | (3,169 | ) | Interest expense | $ | (512 | ) | $ | — |
Three Months Ended September 30, 2017 | $ | (228 | ) | Interest expense | $ | (740 | ) | $ | — |
Nine Months Ended September 30, 2016 | $ | (24,278 | ) | Interest expense | $ | (1,288 | ) | $ | — | |||||
Nine Months Ended September 30, 2017 | $ | (1,735 | ) | Interest expense | $ | (2,219 | ) | $ | — | |||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2016 | 2017 | 2016 | 2017 | |||||||||
Gain (loss) recognized in other income/expense on derivatives (futures contracts) | 0.4 | (1.7 | ) | (5.8 | ) | 5.1 | ||||||
Loss (gain) recognized in other income/expense on hedged item (tank bottoms) | (0.4 | ) | 1.7 | 5.8 | (5.1 | ) | ||||||
Amount of Gain (Loss) Recognized on Derivatives | Amount of Gain (Loss) Recognized on Derivatives | |||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
Location of Gain (Loss) Recognized on Derivatives | September 30, | September 30, | Location of Gain (Loss) Recognized on Derivatives | September 30, | September 30, | |||||||||||||||||||||||||||||||||||||||||||||
Derivative Instrument | 2016 | 2017 | 2016 | 2017 | Derivative Instrument | 2019 | 2020 | 2019 | 2020 | |||||||||||||||||||||||||||||||||||||||||
Futures contracts | Product sales revenue | $ | (12,650 | ) | $ | (47,336 | ) | $ | (8,438 | ) | $ | (4,442 | ) | Futures contracts | Product sales revenue | $ | 17,626 | $ | (7,734) | $ | (41,504) | $ | 89,280 | |||||||||||||||||||||||||||
Futures contracts | Operating expenses | 4,212 | 663 | (1,192 | ) | 663 | Futures contracts | Cost of product sales | (5,581) | 1,815 | (9,456) | (2,529) | ||||||||||||||||||||||||||||||||||||||
Futures contracts | Cost of product sales | 831 | 19,660 | 3,643 | 19,713 | |||||||||||||||||||||||||||||||||||||||||||||
Basis derivative agreement | Basis derivative agreement | Other operating income (expense) | (3,910) | (3,155) | (8,869) | (2,654) | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | (7,607 | ) | $ | (27,013 | ) | $ | (5,987 | ) | $ | 15,934 | Total | $ | 8,135 | $ | (9,074) | $ | (59,829) | $ | 84,097 |
December 31, 2016 | ||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||
Derivative Instrument | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
Futures contracts | Energy commodity derivatives contracts, net | $ | — | Energy commodity derivatives contracts, net | $ | 3,079 | ||||||
Interest rate contracts | Other noncurrent assets | 14,114 | Other noncurrent liabilities | — | ||||||||
Total | $ | 14,114 | Total | $ | 3,079 |
September 30, 2017 | ||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||
Derivative Instrument | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
Futures contracts | Energy commodity derivatives contracts, net | $ | 18 | Energy commodity derivatives contracts, net | $ | — | ||||||
Interest rate contracts | Other current assets | 12,379 | Other current liabilities | — | ||||||||
Total | $ | 12,397 | Total | $ | — |
December 31, 2019 | ||||||||||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||||||||||||
Derivative Instrument | Derivative Instrument | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||||||||||||||||||||||||||
Futures contracts | Futures contracts | Commodity derivatives contracts, net | $ | 811 | Commodity derivatives contracts, net | $ | 11,033 | |||||||||||||||||||||||||||||||
Basis derivative agreement | Basis derivative agreement | Other current assets | 0 | Other current liabilities | 8,457 | |||||||||||||||||||||||||||||||||
Basis derivative agreement | Basis derivative agreement | Other noncurrent assets | 0 | Other noncurrent liabilities | 8,847 | |||||||||||||||||||||||||||||||||
Total | $ | 811 | Total | $ | 28,337 | |||||||||||||||||||||||||||||||||
December 31, 2016 | September 30, 2020 | |||||||||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||||||||||
Derivative Instrument | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Derivative Instrument | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||||||||||||||||||||||
Futures contracts | Energy commodity derivatives contracts, net | $ | 6,060 | Energy commodity derivatives contracts, net | $ | 33,719 | Futures contracts | Commodity derivatives contracts, net | $ | 1,095 | Commodity derivatives contracts, net | $ | 3,983 | |||||||||||||||||||||||||
Futures contracts | Futures contracts | Other noncurrent assets | 1,645 | Other noncurrent assets | 403 | |||||||||||||||||||||||||||||||||
Basis derivative agreement | Basis derivative agreement | Other current assets | 0 | Other current liabilities | 9,280 | |||||||||||||||||||||||||||||||||
Basis derivative agreement | Basis derivative agreement | Other noncurrent assets | 0 | Other noncurrent liabilities | 2,994 | |||||||||||||||||||||||||||||||||
Total | $ | 2,740 | Total | $ | 16,660 | |||||||||||||||||||||||||||||||||
September 30, 2017 | ||||||||||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||||||||||||
Derivative Instrument | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||||||||||||||||||||||||||
Futures contracts | Energy commodity derivatives contracts, net | $ | 18,958 | Energy commodity derivatives contracts, net | $ | 32,685 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2016 | 2017 | 2016 | 2017 | |||||||||||||
Performance-based awards: | ||||||||||||||||
2014 awards | $ | 1,780 | $ | — | $ | 6,168 | $ | 28 | ||||||||
2015 awards | 1,208 | 164 | 3,679 | 3,388 | ||||||||||||
2016 awards | 1,097 | 1,266 | 3,240 | 4,907 | ||||||||||||
2017 awards | — | 1,298 | — | 3,796 | ||||||||||||
Time-based awards | 593 | 738 | 1,650 | 2,064 | ||||||||||||
Total | $ | 4,678 | $ | 3,466 | $ | 14,737 | $ | 14,183 | ||||||||
Allocation of LTIP expense on our consolidated statements of income: | ||||||||||||||||
G&A expense | $ | 4,637 | $ | 3,430 | $ | 14,623 | $ | 14,062 | ||||||||
Operating expense | 41 | 36 | 114 | 121 | ||||||||||||
Total | $ | 4,678 | $ | 3,466 | $ | 14,737 | $ | 14,183 |
Payment Date | Per Unit Cash Distribution Amount | Total Cash Distribution to Limited Partners | ||||||||||
02/12/2016 | $ | 0.7850 | $ | 178,808 | ||||||||
05/13/2016 | 0.8025 | 182,797 | ||||||||||
08/12/2016 | 0.8200 | 186,783 | ||||||||||
Through 09/30/2016 | 2.4075 | 548,388 | ||||||||||
11/14/2016 | 0.8375 | 190,769 | ||||||||||
Total | $ | 3.2450 | $ | 739,157 | ||||||||
02/14/2017 | $ | 0.8550 | $ | 194,961 | ||||||||
05/15/2017 | 0.8725 | 198,951 | ||||||||||
08/14/2017 | 0.8900 | 202,942 | ||||||||||
Through 09/30/2017 | 2.6175 | 596,854 | ||||||||||
11/14/2017(1) | 0.9050 | 206,362 | ||||||||||
Total | $ | 3.5225 | $ | 803,216 | ||||||||
December 31, 2019 | ||||||||||||||||||||||||||||||||
Assets (Liabilities) | Fair Value Measurements using: | |||||||||||||||||||||||||||||||
Carrying Amount | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||
Commodity derivatives contracts | $ | (10,222) | $ | (10,222) | $ | (10,222) | $ | — | $ | — | ||||||||||||||||||||||
Basis derivative agreement | $ | (17,304) | $ | (17,304) | $ | — | $ | (17,304) | ||||||||||||||||||||||||
Long-term receivables | $ | 20,782 | $ | 20,782 | $ | — | $ | — | $ | 20,782 | ||||||||||||||||||||||
Guarantees and contractual obligations | $ | (408) | $ | (408) | $ | — | $ | — | $ | (408) | ||||||||||||||||||||||
Debt | $ | (4,706,075) | $ | (5,192,685) | $ | — | $ | (5,192,685) | $ | — |
December 31, 2016 | ||||||||||||||||||||
Assets (Liabilities) | Fair Value Measurements using: | |||||||||||||||||||
Carrying Amount | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||
Energy commodity derivatives contracts | $ | (30,738 | ) | $ | (30,738 | ) | $ | (30,738 | ) | $ | — | $ | — | |||||||
Interest rate contracts | $ | 14,114 | $ | 14,114 | $ | — | $ | 14,114 | $ | — | ||||||||||
Long-term receivables | $ | 23,870 | $ | 23,870 | $ | — | $ | — | $ | 23,870 | ||||||||||
Debt | $ | (4,087,192 | ) | $ | (4,262,321 | ) | $ | — | $ | (4,262,321 | ) | $ | — |
September 30, 2020 | ||||||||||||||||||||||||||||||||
Assets (Liabilities) | Fair Value Measurements using: | |||||||||||||||||||||||||||||||
Carrying Amount | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||
Commodity derivatives contracts | $ | (1,646) | $ | (1,646) | $ | (1,646) | $ | — | $ | — | ||||||||||||||||||||||
Basis derivative agreement | $ | (12,274) | $ | (12,274) | $ | — | $ | (12,274) | $ | — | ||||||||||||||||||||||
Long-term receivables | $ | 21,850 | $ | 21,850 | $ | — | $ | — | $ | 21,850 | ||||||||||||||||||||||
Guarantees and contractual obligations | $ | (11,239) | $ | (11,239) | $ | — | $ | — | $ | (11,239) | ||||||||||||||||||||||
Debt | $ | (4,900,311) | $ | (4,872,340) | $ | — | $ | (4,872,340) | $ | — |
September 30, 2017 | ||||||||||||||||||||
Assets (Liabilities) | Fair Value Measurements using: | |||||||||||||||||||
Carrying Amount | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||
Energy commodity derivatives contracts | $ | (13,709 | ) | $ | (13,709 | ) | $ | (13,709 | ) | $ | — | $ | — | |||||||
Interest rate contracts | $ | 12,379 | $ | 12,379 | $ | — | $ | 12,379 | $ | — | ||||||||||
Long-term receivables | $ | 27,166 | $ | 27,166 | $ | — | $ | — | $ | 27,166 | ||||||||||
Debt | $ | (4,302,850 | ) | $ | (4,562,570 | ) | $ | — | $ | (4,562,570 | ) | $ | — |
228,403,428 | ||||||||
Units repurchased during 2020 | (4,987,128) | |||||||
January 2020–Settlement of employee LTIP awards | 275,093 | |||||||
During 2020–Other(a) | 9,550 | |||||||
Common units outstanding on September 30, 2020 | 223,700,943 | |||||||
Payment Date | Per Unit Cash Distribution Amount | Total Cash Distribution | ||||||||||||||||||||||||
02/14/2019 | $ | 0.9975 | $ | 227,832 | ||||||||||||||||||||||
05/15/2019 | 1.0050 | 229,545 | ||||||||||||||||||||||||
08/14/2019 | 1.0125 | 231,258 | ||||||||||||||||||||||||
Through 09/30/2019 | 3.0150 | 688,635 | ||||||||||||||||||||||||
11/14/2019 | 1.0200 | 232,971 | ||||||||||||||||||||||||
Total | $ | 4.0350 | $ | 921,606 | ||||||||||||||||||||||
02/14/2020 | $ | 1.0275 | $ | 234,774 | ||||||||||||||||||||||
05/15/2020 | 1.0275 | 231,245 | ||||||||||||||||||||||||
08/14/2020 | 1.0275 | 231,245 | ||||||||||||||||||||||||
Through 09/30/2020 | 3.0825 | 697,264 | ||||||||||||||||||||||||
11/13/2020(a) | 1.0275 | 229,853 | ||||||||||||||||||||||||
Total | $ | 4.1100 | $ | 927,117 | ||||||||||||||||||||||
Three Months Ended September 30, | Variance Favorable (Unfavorable) | ||||||||||||||||||||||
2019 | 2020 | $ Change | % Change | ||||||||||||||||||||
Financial Highlights ($ in millions, except operating statistics) | |||||||||||||||||||||||
Transportation and terminals revenue: | |||||||||||||||||||||||
Refined products | $ | 352.6 | $ | 320.8 | $ | (31.8) | (9) | ||||||||||||||||
Crude oil | 155.3 | 154.6 | (0.7) | — | |||||||||||||||||||
Intersegment eliminations | (1.5) | (1.9) | (0.4) | (27) | |||||||||||||||||||
Total transportation and terminals revenue | 506.4 | 473.5 | (32.9) | (6) | |||||||||||||||||||
Affiliate management fee revenue | 5.3 | 5.3 | — | — | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Refined products | 127.4 | 118.5 | 8.9 | 7 | |||||||||||||||||||
Crude oil | 44.9 | 47.0 | (2.1) | (5) | |||||||||||||||||||
Intersegment eliminations | (3.0) | (3.5) | 0.5 | 17 | |||||||||||||||||||
Total operating expenses | 169.3 | 162.0 | 7.3 | 4 | |||||||||||||||||||
Product margin: | |||||||||||||||||||||||
Product sales revenue | 144.8 | 119.4 | (25.4) | (18) | |||||||||||||||||||
Cost of product sales | 108.7 | 96.0 | 12.7 | 12 | |||||||||||||||||||
Product margin | 36.1 | 23.4 | (12.7) | (35) | |||||||||||||||||||
Other operating income (expense) | (0.4) | (3.0) | (2.6) | (650) | |||||||||||||||||||
Earnings of non-controlled entities | 50.1 | 39.2 | (10.9) | (22) | |||||||||||||||||||
Operating margin | 428.2 | 376.4 | (51.8) | (12) | |||||||||||||||||||
Depreciation, amortization and impairment expense | 56.6 | 71.8 | (15.2) | (27) | |||||||||||||||||||
G&A expense | 51.1 | 38.0 | 13.1 | 26 | |||||||||||||||||||
Operating profit | 320.5 | 266.6 | (53.9) | (17) | |||||||||||||||||||
Interest expense (net of interest income and interest capitalized) | 47.3 | 52.7 | (5.4) | (11) | |||||||||||||||||||
Gain on disposition of assets | (2.6) | — | (2.6) | (100) | |||||||||||||||||||
Other expense | 2.6 | 1.5 | 1.1 | 42 | |||||||||||||||||||
Income before provision for income taxes | 273.2 | 212.4 | (60.8) | (22) | |||||||||||||||||||
Provision for income taxes | 0.2 | 0.8 | (0.6) | (300) | |||||||||||||||||||
Net income | $ | 273.0 | $ | 211.6 | $ | (61.4) | (22) | ||||||||||||||||
Operating Statistics: | |||||||||||||||||||||||
Refined products: | |||||||||||||||||||||||
Transportation revenue per barrel shipped | $ | 1.618 | $ | 1.719 | |||||||||||||||||||
Volume shipped (million barrels): | |||||||||||||||||||||||
Gasoline | 74.5 | 71.9 | |||||||||||||||||||||
Distillates | 47.0 | 42.5 | |||||||||||||||||||||
Aviation fuel | 11.1 | 4.7 | |||||||||||||||||||||
Liquefied petroleum gases | 3.8 | 0.1 | |||||||||||||||||||||
Total volume shipped | 136.4 | 119.2 | |||||||||||||||||||||
Crude oil: | |||||||||||||||||||||||
Magellan 100%-owned assets: | |||||||||||||||||||||||
Transportation revenue per barrel shipped | $ | 0.935 | $ | 1.401 | |||||||||||||||||||
Volume shipped (million barrels)(1) | 79.2 | 45.1 | |||||||||||||||||||||
Terminal average utilization (million barrels per month) | 22.9 | 25.9 | |||||||||||||||||||||
Select joint venture pipelines: | |||||||||||||||||||||||
BridgeTex - volume shipped (million barrels)(2) | 40.8 | 30.6 | |||||||||||||||||||||
Saddlehorn - volume shipped (million barrels)(3) | 17.0 | 15.1 |
Three Months Ended September 30, | Variance Favorable (Unfavorable) | ||||||||||||
2016 | 2017 | $ Change | % Change | ||||||||||
Financial Highlights ($ in millions, except operating statistics) | |||||||||||||
Transportation and terminals revenue: | |||||||||||||
Refined products | $ | 267.3 | $ | 289.0 | $ | 21.7 | 8 | ||||||
Crude oil | 100.1 | 116.3 | 16.2 | 16 | |||||||||
Marine storage | 46.2 | 42.5 | (3.7 | ) | (8) | ||||||||
Intersegment eliminations | (0.1 | ) | (0.8 | ) | (0.7 | ) | n/a | ||||||
Total transportation and terminals revenue | 413.5 | 447.0 | 33.5 | 8 | |||||||||
Affiliate management fee revenue | 5.0 | 4.9 | (0.1 | ) | (2) | ||||||||
Operating expenses: | |||||||||||||
Refined products | 95.6 | 118.7 | (23.1 | ) | (24) | ||||||||
Crude oil | 24.6 | 31.2 | (6.6 | ) | (27) | ||||||||
Marine storage | 16.3 | 17.8 | (1.5 | ) | (9) | ||||||||
Intersegment eliminations | (1.6 | ) | (2.3 | ) | 0.7 | 44 | |||||||
Total operating expenses | 134.9 | 165.4 | (30.5 | ) | (23) | ||||||||
Product margin: | |||||||||||||
Product sales revenue | 133.3 | 121.0 | (12.3 | ) | (9) | ||||||||
Cost of product sales | 118.2 | 121.9 | (3.7 | ) | (3) | ||||||||
Product margin | 15.1 | (0.9 | ) | (16.0 | ) | (106) | |||||||
Earnings of non-controlled entities | 18.5 | 31.2 | 12.7 | 69 | |||||||||
Operating margin | 317.2 | 316.8 | (0.4 | ) | — | ||||||||
Depreciation and amortization expense | 47.0 | 49.9 | (2.9 | ) | (6) | ||||||||
G&A expense | 35.6 | 37.2 | (1.6 | ) | (4) | ||||||||
Operating profit | 234.6 | 229.7 | (4.9 | ) | (2) | ||||||||
Interest expense (net of interest income and interest capitalized) | 42.0 | 48.3 | (6.3 | ) | (15) | ||||||||
Gain on sale of asset | — | (18.5 | ) | 18.5 | n/a | ||||||||
Other expense (income) | (2.7 | ) | 0.5 | (3.2 | ) | n/a | |||||||
Income before provision for income taxes | 195.3 | 199.4 | 4.1 | 2 | |||||||||
Provision for income taxes | 0.7 | 0.9 | (0.2 | ) | (29) | ||||||||
Net income | $ | 194.6 | $ | 198.5 | $ | 3.9 | 2 | ||||||
Operating Statistics: | |||||||||||||
Refined products: | |||||||||||||
Transportation revenue per barrel shipped | $ | 1.503 | $ | 1.521 | |||||||||
Volume shipped (million barrels): | |||||||||||||
Gasoline | 72.7 | 75.8 | |||||||||||
Distillates | 37.3 | 41.0 | |||||||||||
Aviation fuel | 7.2 | 6.7 | |||||||||||
Liquefied petroleum gases | 4.1 | 3.9 | |||||||||||
Total volume shipped | 121.3 | 127.4 | |||||||||||
Crude oil: | |||||||||||||
Magellan 100%-owned assets: | |||||||||||||
Transportation revenue per barrel shipped | $ | 1.189 | $ | 1.332 | |||||||||
Volume shipped (million barrels) | 50.7 | 48.4 | |||||||||||
Crude oil terminal average utilization (million barrels per month) | 14.8 | 14.9 | |||||||||||
Select joint venture pipelines: | |||||||||||||
BridgeTex - volume shipped (million barrels)(1) | 20.6 | 25.7 | |||||||||||
Saddlehorn - volume shipped (million barrels)(2) | 1.2 | 4.4 | |||||||||||
Marine storage: | |||||||||||||
Marine terminal average utilization (million barrels per month) | 24.3 | 22.5 |
Nine Months Ended September 30, | Variance Favorable (Unfavorable) | Nine Months Ended September 30, | Variance Favorable (Unfavorable) | |||||||||||||||||||||||||||||||||
2016 | 2017 | $ Change | % Change | 2019 | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||
Financial Highlights ($ in millions, except operating statistics) | Financial Highlights ($ in millions, except operating statistics) | |||||||||||||||||||||||||||||||||||
Transportation and terminals revenue: | Transportation and terminals revenue: | |||||||||||||||||||||||||||||||||||
Refined products | $ | 739.9 | $ | 808.8 | $ | 68.9 | 9 | Refined products | $ | 1,009.8 | $ | 914.9 | $ | (94.9) | (9) | |||||||||||||||||||||
Crude oil | 303.2 | 329.8 | 26.6 | 9 | Crude oil | 467.6 | 433.9 | (33.7) | (7) | |||||||||||||||||||||||||||
Marine storage | 132.8 | 136.7 | 3.9 | 3 | ||||||||||||||||||||||||||||||||
Intersegment eliminations | (0.1 | ) | (2.4 | ) | (2.3 | ) | n/a | Intersegment eliminations | (3.8) | (5.1) | (1.3) | (34) | ||||||||||||||||||||||||
Total transportation and terminals revenue | 1,175.8 | 1,272.9 | 97.1 | 8 | Total transportation and terminals revenue | 1,473.6 | 1,343.7 | (129.9) | (9) | |||||||||||||||||||||||||||
Affiliate management fee revenue | 11.1 | 12.9 | 1.8 | 16 | Affiliate management fee revenue | 15.8 | 15.9 | 0.1 | 1 | |||||||||||||||||||||||||||
Operating expenses: | Operating expenses: | |||||||||||||||||||||||||||||||||||
Refined products | 279.9 | 312.9 | (33.0 | ) | (12) | Refined products | 362.9 | 327.8 | 35.1 | 10 | ||||||||||||||||||||||||||
Crude oil | 66.2 | 90.0 | (23.8 | ) | (36) | Crude oil | 129.4 | 139.7 | (10.3) | (8) | ||||||||||||||||||||||||||
Marine storage | 49.8 | 45.8 | 4.0 | 8 | ||||||||||||||||||||||||||||||||
Intersegment eliminations | (3.9 | ) | (6.4 | ) | 2.5 | 64 | Intersegment eliminations | (8.0) | (9.9) | 1.9 | 24 | |||||||||||||||||||||||||
Total operating expenses | 392.0 | 442.3 | (50.3 | ) | (13) | Total operating expenses | 484.3 | 457.6 | 26.7 | 6 | ||||||||||||||||||||||||||
Product margin: | Product margin: | |||||||||||||||||||||||||||||||||||
Product sales revenue | 403.6 | 548.6 | 145.0 | 36 | Product sales revenue | 497.8 | 481.8 | (16.0) | (3) | |||||||||||||||||||||||||||
Cost of product sales | 327.5 | 440.7 | (113.2 | ) | (35) | Cost of product sales | 430.7 | 395.8 | 34.9 | 8 | ||||||||||||||||||||||||||
Product margin | 76.1 | 107.9 | 31.8 | 42 | Product margin | 67.1 | 86.0 | 18.9 | 28 | |||||||||||||||||||||||||||
Other operating income (expense) | Other operating income (expense) | 1.5 | 0.5 | (1.0) | (67) | |||||||||||||||||||||||||||||||
Earnings of non-controlled entities | 51.5 | 78.2 | 26.7 | 52 | Earnings of non-controlled entities | 122.2 | 116.5 | (5.7) | (5) | |||||||||||||||||||||||||||
Operating margin | 922.5 | 1,029.6 | 107.1 | 12 | Operating margin | 1,195.9 | 1,105.0 | (90.9) | (8) | |||||||||||||||||||||||||||
Depreciation and amortization expense | 134.1 | 146.1 | (12.0 | ) | (9) | |||||||||||||||||||||||||||||||
Depreciation, amortization and impairment expense | Depreciation, amortization and impairment expense | 181.0 | 193.9 | (12.9) | (7) | |||||||||||||||||||||||||||||||
G&A expense | 110.8 | 120.9 | (10.1 | ) | (9) | G&A expense | 149.5 | 117.0 | 32.5 | 22 | ||||||||||||||||||||||||||
Operating profit | 677.6 | 762.6 | 85.0 | 13 | Operating profit | 865.4 | 794.1 | (71.3) | (8) | |||||||||||||||||||||||||||
Interest expense (net of interest income and interest capitalized) | 120.4 | 143.1 | (22.7 | ) | (19) | Interest expense (net of interest income and interest capitalized) | 148.3 | 168.0 | (19.7) | (13) | ||||||||||||||||||||||||||
Gain on sale of asset | — | (18.5 | ) | 18.5 | n/a | |||||||||||||||||||||||||||||||
Gain on exchange of interest in non-controlled entity | (28.1 | ) | — | (28.1 | ) | (100) | ||||||||||||||||||||||||||||||
Other expense (income) | (6.5 | ) | 3.7 | (10.2 | ) | n/a | ||||||||||||||||||||||||||||||
Gain on disposition of assets | Gain on disposition of assets | (29.0) | (12.9) | (16.1) | (56) | |||||||||||||||||||||||||||||||
Other expense | Other expense | 9.2 | 3.8 | 5.4 | 59 | |||||||||||||||||||||||||||||||
Income before provision for income taxes | 591.8 | 634.3 | 42.5 | 7 | Income before provision for income taxes | 736.9 | 635.2 | (101.7) | (14) | |||||||||||||||||||||||||||
Provision for income taxes | 2.3 | 2.7 | (0.4 | ) | (17) | Provision for income taxes | 2.5 | 2.2 | 0.3 | 12 | ||||||||||||||||||||||||||
Net income | $ | 589.5 | $ | 631.6 | $ | 42.1 | 7 | Net income | $ | 734.4 | $ | 633.0 | $ | (101.4) | (14) | |||||||||||||||||||||
Operating Statistics: | Operating Statistics: | |||||||||||||||||||||||||||||||||||
Refined products: | Refined products: | |||||||||||||||||||||||||||||||||||
Transportation revenue per barrel shipped | $ | 1.451 | $ | 1.489 | Transportation revenue per barrel shipped | $ | 1.600 | $ | 1.658 | |||||||||||||||||||||||||||
Volume shipped (million barrels): | Volume shipped (million barrels): | |||||||||||||||||||||||||||||||||||
Gasoline | 204.9 | 218.7 | Gasoline | 207.4 | 199.4 | |||||||||||||||||||||||||||||||
Distillates | 110.0 | 119.6 | Distillates | 138.8 | 127.6 | |||||||||||||||||||||||||||||||
Aviation fuel | 19.6 | 20.2 | Aviation fuel | 29.8 | 16.8 | |||||||||||||||||||||||||||||||
Liquefied petroleum gases | 9.9 | 9.6 | Liquefied petroleum gases | 8.9 | 0.5 | |||||||||||||||||||||||||||||||
Total volume shipped | 344.4 | 368.1 | Total volume shipped | 384.9 | 344.3 | |||||||||||||||||||||||||||||||
Crude oil: | Crude oil: | |||||||||||||||||||||||||||||||||||
Magellan 100%-owned assets: | Magellan 100%-owned assets: | |||||||||||||||||||||||||||||||||||
Transportation revenue per barrel shipped | $ | 1.325 | $ | 1.412 | Transportation revenue per barrel shipped | $ | 0.952 | $ | 1.145 | |||||||||||||||||||||||||||
Volume shipped (million barrels) | 139.5 | 137.0 | ||||||||||||||||||||||||||||||||||
Crude oil terminal average utilization (million barrels per month) | 14.7 | 15.5 | ||||||||||||||||||||||||||||||||||
Volume shipped (million barrels)(1) | Volume shipped (million barrels)(1) | 239.1 | 167.9 | |||||||||||||||||||||||||||||||||
Terminal average utilization (million barrels per month) | Terminal average utilization (million barrels per month) | 22.7 | 24.7 | |||||||||||||||||||||||||||||||||
Select joint venture pipelines: | Select joint venture pipelines: | |||||||||||||||||||||||||||||||||||
BridgeTex - volume shipped (million barrels)(1) | 58.7 | 66.4 | ||||||||||||||||||||||||||||||||||
Saddlehorn - volume shipped (million barrels)(2) | 1.2 | 12.1 | ||||||||||||||||||||||||||||||||||
Marine storage: | ||||||||||||||||||||||||||||||||||||
Marine terminal average utilization (million barrels per month) | 23.6 | 23.4 | ||||||||||||||||||||||||||||||||||
BridgeTex - volume shipped (million barrels)(2) | BridgeTex - volume shipped (million barrels)(2) | 117.3 | 99.9 | |||||||||||||||||||||||||||||||||
Saddlehorn - volume shipped (million barrels)(3) | Saddlehorn - volume shipped (million barrels)(3) | 39.4 | 46.5 | |||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | Increase (Decrease) | |||||||||||||||||||
2019 | 2020 | |||||||||||||||||||
Net income | $ | 734.4 | $ | 633.0 | $ | (101.4) | ||||||||||||||
Interest expense, net | 148.3 | 168.0 | 19.7 | |||||||||||||||||
Depreciation, amortization and impairment(1) | 176.9 | 193.4 | 16.5 | |||||||||||||||||
Equity-based incentive compensation(2) | 12.8 | (9.1) | (21.9) | |||||||||||||||||
Gain on disposition of assets(3) | (16.3) | (10.5) | 5.8 | |||||||||||||||||
Commodity-related adjustments: | ||||||||||||||||||||
Derivative (gains) losses recognized in the period associated with future transactions(4) | 13.7 | 6.7 | (7.0) | |||||||||||||||||
Derivative gains (losses) recognized in previous periods associated with transactions completed in the period(4) | 71.2 | (18.9) | (90.1) | |||||||||||||||||
Inventory valuation adjustments(5) | (9.7) | 9.5 | 19.2 | |||||||||||||||||
Total commodity-related adjustments | 75.2 | (2.7) | (77.9) | |||||||||||||||||
Distributions from operations of non-controlled entities in excess of earnings | 15.9 | 36.2 | 20.3 | |||||||||||||||||
Adjusted EBITDA | 1,147.2 | 1,008.3 | (138.9) | |||||||||||||||||
Interest expense, net, excluding debt issuance cost amortization(6) | (137.5) | (152.3) | (14.8) | |||||||||||||||||
Maintenance capital(7) | (70.1) | (81.2) | (11.1) | |||||||||||||||||
DCF | $ | 939.6 | $ | 774.8 | $ | (164.8) | ||||||||||||||
Nine Months Ended September 30, | Increase (Decrease) | |||||||||||
2016 | 2017 | |||||||||||
Net income | $ | 589.5 | $ | 631.6 | $ | 42.1 | ||||||
Interest expense, net | 120.4 | 143.1 | 22.7 | |||||||||
Depreciation and amortization | 134.1 | 146.1 | 12.0 | |||||||||
Equity-based incentive compensation(1) | 0.4 | 0.3 | (0.1 | ) | ||||||||
Loss on sale and retirement of assets | 5.4 | 7.6 | 2.2 | |||||||||
Gain on sale of asset(2) | — | (18.5 | ) | (18.5 | ) | |||||||
Gain on exchange of interest in non-controlled entity(3) | (28.1 | ) | — | 28.1 | ||||||||
Commodity-related adjustments: | ||||||||||||
Derivative (gains) losses recognized in the period associated with future product transactions(5) | 10.1 | 13.5 | 3.4 | |||||||||
Derivative gains (losses) recognized in previous periods associated with product sales completed in the period(5) | 38.6 | (25.5 | ) | (64.1 | ) | |||||||
Inventory valuation adjustments(6) | (2.8 | ) | 4.0 | 6.8 | ||||||||
Total commodity-related adjustments | 45.9 | (8.0 | ) | (53.9 | ) | |||||||
Cash distributions received from non-controlled entities in excess of earnings(7) | 3.0 | 19.5 | 16.5 | |||||||||
Other(4) | 3.9 | 3.8 | (0.1 | ) | ||||||||
Adjusted EBITDA | 874.5 | 925.5 | 51.0 | |||||||||
Interest expense, net, excluding debt issuance cost amortization | (118.1 | ) | (140.6 | ) | (22.5 | ) | ||||||
Maintenance capital(8) | (86.1 | ) | (71.8 | ) | 14.3 | |||||||
DCF | $ | 670.3 | $ | 713.1 | $ | 42.8 | ||||||
Nine Months Ended September 30, 2016 | |||||||||||||||||||
Product Sales Revenue | Cost of Product Sales | Operating Expense | Other Income | Net Impact on Net Income | |||||||||||||||
Gains (losses) recorded on open futures contracts during the period | $ | (20.6 | ) | $ | 3.5 | $ | (2.0 | ) | $ | 4.5 | $ | (14.6 | ) | ||||||
Gains (losses) recognized on settled futures contracts during the period | 12.2 | 0.1 | 0.8 | — | 13.1 | ||||||||||||||
Net impact of futures contracts | $ | (8.4 | ) | $ | 3.6 | $ | (1.2 | ) | $ | 4.5 | $ | (1.5 | ) |
Nine Months Ended September 30, 2017 | |||||||||||||||||||
Product Sales Revenue | Cost of Product Sales | Operating Expense | Other Income | Net Impact on Net Income | |||||||||||||||
Gains (losses) recorded on open futures contracts during the period | $ | (31.6 | ) | $ | 17.2 | $ | 0.7 | $ | 2.4 | $ | (11.3 | ) | |||||||
Gains recognized on settled futures contracts during the period | 27.2 | 2.5 | — | — | 29.7 | ||||||||||||||
Net impact of futures contracts | $ | (4.4 | ) | $ | 19.7 | $ | 0.7 | $ | 2.4 | $ | 18.4 |
Total | 2020 | 2021-2022 | |||||||||||||||
Forward purchase contracts – notional value | $ | 53.5 | $ | 30.1 | $ | 23.4 | |||||||||||
Forward purchase contracts – barrels | 1.4 | 0.8 | 0.6 | ||||||||||||||
Forward sales contracts – notional value | $ | 19.5 | $ | 18.4 | $ | 1.1 | |||||||||||
Forward sales contracts – barrels | 0.4 | 0.4 | — |
Total | < 1 Year | 1 - 4 Years | |||||||||
Forward purchase contracts – notional value | $ | 195.9 | $ | 107.9 | $ | 88.0 | |||||
Forward purchase contracts – barrels | 4.4 | 2.2 | 2.2 | ||||||||
Forward sales contracts – notional value | $ | 69.5 | $ | 49.0 | $ | 20.5 | |||||
Forward sales contracts – barrels | 1.1 | 0.8 | 0.3 |
Period | Total Number of Common Units Purchased | Average Price Paid Per Unit | Total Number of Units Purchased as Part of Publicly Announced Program | Approximate Dollar Value of Units That May Yet Be Purchased under the Program (in millions) | ||||||||||||||||||||||
January 1-31, 2020 | — | $ | — | — | $ | 750.0 | ||||||||||||||||||||
February 1-29, 2020 | 1,514,719 | $ | 59.19 | 1,514,719 | $ | 660.4 | ||||||||||||||||||||
March 1-31, 2020 | 2,117,065 | $ | 53.06 | 2,117,065 | $ | 548.1 | ||||||||||||||||||||
First Quarter 2020 | 3,631,784 | $ | 55.62 | 3,631,784 | ||||||||||||||||||||||
April 1-30, 2020 | — | — | $ | 548.1 | ||||||||||||||||||||||
May 1-31, 2020 | — | — | $ | 548.1 | ||||||||||||||||||||||
June 1-30, 2020 | — | — | $ | 548.1 | ||||||||||||||||||||||
Second Quarter 2020 | — | — | ||||||||||||||||||||||||
July 1-31, 2020 | — | — | $ | 548.1 | ||||||||||||||||||||||
August 1-31, 2020 | — | — | $ | 548.1 | ||||||||||||||||||||||
September 1-30, 2020 | 1,355,344 | $ | 36.87 | 1,355,344 | $ | 498.0 | ||||||||||||||||||||
Third Quarter 2020 | 1,355,344 | $ | 36.87 | 1,355,344 | ||||||||||||||||||||||
Year-to-Date 2020 | 4,987,128 | $ | 50.52 | 4,987,128 |
Exhibit Number | Description | ||||||||||
Exhibit | — | ||||||||||
Exhibit 31.1 | — | ||||||||||
Exhibit 31.2 | — | ||||||||||
Exhibit 32.1 | — | ||||||||||
Exhibit 32.2 | — | ||||||||||
Exhibit 101.INS | — | XBRL Instance | |||||||||
Exhibit 101.SCH | — | XBRL Taxonomy Extension | |||||||||
Exhibit 101.CAL | — | XBRL Taxonomy Extension Calculation | |||||||||
Exhibit 101.DEF | — | XBRL Taxonomy Extension Definition | |||||||||
Exhibit 101.LAB | — | XBRL Taxonomy Extension Label | |||||||||
Exhibit 101.PRE | — | XBRL Taxonomy Extension Presentation | |||||||||
MAGELLAN MIDSTREAM PARTNERS, L.P. | ||||||||
By: | ||||||||
Magellan GP, LLC, | ||||||||
its general partner | ||||||||
/s/ | ||||||||
Chief Financial Officer | ||||||||
(Principal Accounting and Financial Officer) |