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 STATEMENTS OF PARTNERS’ CAPITAL | ||||||||||||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS: | ||||||||||||||||||
1. | ||||||||||||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS: | 2. | |||||||||||||||||
1. | 3. | |||||||||||||||||
2. | 4. | |||||||||||||||||
3. | 5. | |||||||||||||||||
4. | 6. | |||||||||||||||||
5. | 7. | |||||||||||||||||
6. | 8. | |||||||||||||||||
7. | 9. | |||||||||||||||||
8. | 10. | |||||||||||||||||
9. | 11. | |||||||||||||||||
10. | 12. | |||||||||||||||||
11. | 13. | |||||||||||||||||
12. | 14. | |||||||||||||||||
13. | 15. | |||||||||||||||||
14. | 16. | |||||||||||||||||
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, | ||||||||||||||
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 | |||||||||||||||||||||||
March 31, | |||||||||||||||||||||||
2022 | 2023 | ||||||||||||||||||||||
Transportation and terminals revenue | $ | 422.9 | $ | 454.1 | |||||||||||||||||||
Product sales revenue | 246.1 | 410.1 | |||||||||||||||||||||
Affiliate management fee revenue | 5.7 | 5.5 | |||||||||||||||||||||
Total revenue | 674.7 | 869.7 | |||||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Operating | 124.2 | 133.9 | |||||||||||||||||||||
Cost of product sales | 243.4 | 320.1 | |||||||||||||||||||||
Depreciation, amortization and impairment | 57.7 | 55.8 | |||||||||||||||||||||
General and administrative | 62.8 | 60.4 | |||||||||||||||||||||
Total costs and expenses | 488.1 | 570.2 | |||||||||||||||||||||
Other operating income (expense) | (2.0) | 5.8 | |||||||||||||||||||||
Earnings of non-controlled entities | 35.4 | 26.2 | |||||||||||||||||||||
Operating profit | 220.0 | 331.5 | |||||||||||||||||||||
Interest expense | 57.3 | 57.7 | |||||||||||||||||||||
Interest capitalized | (0.4) | (0.6) | |||||||||||||||||||||
Interest income | (0.1) | (1.0) | |||||||||||||||||||||
Gain on disposition of assets | (0.2) | — | |||||||||||||||||||||
Other (income) expense | 0.6 | 0.6 | |||||||||||||||||||||
Income from continuing operations before provision for income taxes | 162.8 | 274.8 | |||||||||||||||||||||
Provision for income taxes | 0.8 | 0.9 | |||||||||||||||||||||
Income from continuing operations | 162.0 | 273.9 | |||||||||||||||||||||
Income from discontinued operations | 3.5 | — | |||||||||||||||||||||
Net income | $ | 165.5 | $ | 273.9 | |||||||||||||||||||
Earnings per common unit | |||||||||||||||||||||||
Basic and diluted: | |||||||||||||||||||||||
Continuing operations | $ | 0.76 | $ | 1.34 | |||||||||||||||||||
Discontinued operations | 0.02 | — | |||||||||||||||||||||
Net income per common unit | $ | 0.78 | $ | 1.34 | |||||||||||||||||||
Weighted average number of common units outstanding | 212.9 | 204.0 | |||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||
2022 | 2023 | ||||||||||||||||||||||
Net income | $ | 165.5 | $ | 273.9 | |||||||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||
Derivative activity: | |||||||||||||||||||||||
Reclassification of net loss on cash flow hedges to income | 0.9 | 0.9 | |||||||||||||||||||||
Changes in employee benefit plan assets and benefit obligations recognized in other comprehensive income: | |||||||||||||||||||||||
Recognition of actuarial loss amortization in income | 1.2 | 0.4 | |||||||||||||||||||||
Total other comprehensive income | 2.1 | 1.3 | |||||||||||||||||||||
Comprehensive income | $ | 167.6 | $ | 275.2 | |||||||||||||||||||
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, 2022 | March 31, 2023 | ||||||||||
ASSETS | (Unaudited) | ||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 2.0 | $ | 7.4 | |||||||
Trade accounts receivable | 219.9 | 160.2 | |||||||||
Other accounts receivable | 44.4 | 35.6 | |||||||||
Inventories | 356.2 | 326.6 | |||||||||
Commodity derivatives contracts, net | 6.5 | 0.7 | |||||||||
Commodity derivatives deposits | 14.8 | 18.5 | |||||||||
Assets held for sale | 9.9 | 9.9 | |||||||||
Other current assets | 56.8 | 39.9 | |||||||||
Total current assets | 710.5 | 598.8 | |||||||||
Property, plant and equipment | 8,163.9 | 8,208.8 | |||||||||
Less: accumulated depreciation | 2,333.6 | 2,388.2 | |||||||||
Net property, plant and equipment | 5,830.3 | 5,820.6 | |||||||||
Investments in non-controlled entities | 894.0 | 882.1 | |||||||||
Right-of-use asset, operating leases | 149.4 | 142.9 | |||||||||
Long-term receivables | 8.3 | 8.9 | |||||||||
Goodwill | 50.4 | 50.4 | |||||||||
Other intangibles (less accumulated amortization of $14.7 and $15.4 at December 31, 2022 and March 31, 2023, respectively) | 41.0 | 40.3 | |||||||||
Restricted cash | 4.9 | 4.6 | |||||||||
Other noncurrent assets | 18.9 | 18.5 | |||||||||
Total assets | $ | 7,707.7 | $ | 7,567.1 | |||||||
LIABILITIES AND PARTNERS’ CAPITAL | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 108.2 | $ | 126.9 | |||||||
Accrued payroll and benefits | 76.8 | 42.8 | |||||||||
Accrued interest payable | 59.0 | 50.0 | |||||||||
Accrued taxes other than income | 86.0 | 56.6 | |||||||||
Deferred revenue | 103.9 | 109.6 | |||||||||
Accrued product liabilities | 209.3 | 162.3 | |||||||||
Commodity derivatives contracts, net | 15.4 | 4.3 | |||||||||
Current portion of operating lease liability | 31.0 | 31.1 | |||||||||
Other current liabilities | 35.9 | 34.5 | |||||||||
Total current liabilities | 725.5 | 618.1 | |||||||||
Long-term debt, net | 5,015.0 | 4,983.5 | |||||||||
Long-term operating lease liability | 116.9 | 112.3 | |||||||||
Long-term pension and benefits | 87.4 | 91.3 | |||||||||
Other noncurrent liabilities | 78.0 | 80.5 | |||||||||
Commitments and contingencies | |||||||||||
Partners’ capital: | |||||||||||
Common unitholders (203.0 units and 202.1 units outstanding at December 31, 2022 and March 31, 2023, respectively) | 1,778.8 | 1,774.0 | |||||||||
Accumulated other comprehensive loss | (93.9) | (92.6) | |||||||||
Total partners’ capital | 1,684.9 | 1,681.4 | |||||||||
Total liabilities and partners’ capital | $ | 7,707.7 | $ | 7,567.1 | |||||||
December 31, 2016 | September 30, 2017 | ||||||
ASSETS | (Unaudited) | ||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 14,701 | $ | 1,381 | |||
Trade accounts receivable | 105,689 | 128,765 | |||||
Other accounts receivable | 25,761 | 13,349 | |||||
Inventory | 134,378 | 168,762 | |||||
Energy commodity derivatives contracts, net | — | 1,189 | |||||
Energy commodity derivatives deposits | 49,899 | 31,735 | |||||
Other current assets | 39,966 | 62,247 | |||||
Total current assets | 370,394 | 407,428 | |||||
Property, plant and equipment | 6,783,737 | 7,121,856 | |||||
Less: Accumulated depreciation | 1,507,996 | 1,638,351 | |||||
Net property, plant and equipment | 5,275,741 | 5,483,505 | |||||
Investments in non-controlled entities | 931,255 | 1,066,940 | |||||
Long-term receivables | 23,870 | 27,166 | |||||
Goodwill | 53,260 | 53,260 | |||||
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 noncurrent assets | 65,577 | 12,303 | |||||
Total assets | $ | 6,772,073 | $ | 7,103,447 | |||
LIABILITIES AND PARTNERS’ CAPITAL | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 77,248 | $ | 120,990 | |||
Accrued payroll and benefits | 45,690 | 40,082 | |||||
Accrued interest payable | 65,643 | 42,257 | |||||
Accrued taxes other than income | 50,166 | 49,844 | |||||
Environmental liabilities | 10,249 | 9,870 | |||||
Deferred revenue | 101,891 | 116,697 | |||||
Accrued product liabilities | 51,600 | 119,572 | |||||
Energy commodity derivatives contracts, net | 30,738 | 14,898 | |||||
Current portion of long-term debt, net | — | 251,439 | |||||
Other current liabilities | 48,431 | 44,065 | |||||
Total current liabilities | 481,656 | 809,714 | |||||
Long-term debt, net | 4,087,192 | 4,051,411 | |||||
Long-term pension and benefits | 71,461 | 66,410 | |||||
Other noncurrent liabilities | 25,868 | 29,799 | |||||
Environmental liabilities | 13,791 | 10,818 | |||||
Commitments and contingencies | |||||||
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 | |||||
Accumulated other comprehensive loss | (101,241 | ) | (94,099 | ) | |||
Total partners’ capital | 2,092,105 | 2,135,295 | |||||
Total liabilities and partners’ capital | $ | 6,772,073 | $ | 7,103,447 |
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 | ) |
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2022 | 2023 | |||||||||||||
Operating Activities: | ||||||||||||||
Net income | $ | 165.5 | $ | 273.9 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Income from discontinued operations | (3.5) | — | ||||||||||||
Depreciation, amortization and impairment expense | 57.7 | 56.4 | ||||||||||||
Gain on disposition of assets | (0.2) | — | ||||||||||||
Earnings of non-controlled entities | (35.4) | (26.2) | ||||||||||||
Distributions from operations of non-controlled entities | 38.4 | 38.1 | ||||||||||||
Equity-based incentive compensation expense | 14.4 | 6.4 | ||||||||||||
Settlement cost, amortization of prior service credit and actuarial loss | 1.2 | 0.4 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Trade accounts receivable and other accounts receivable | 5.0 | 68.5 | ||||||||||||
Inventories | (27.1) | 29.6 | ||||||||||||
Accounts payable | (9.3) | 0.2 | ||||||||||||
Accrued payroll and benefits | (31.0) | (34.0) | ||||||||||||
Accrued interest payable | (9.0) | (9.0) | ||||||||||||
Accrued taxes other than income | (24.8) | (29.4) | ||||||||||||
Accrued product liabilities | (26.9) | (47.0) | ||||||||||||
Deferred revenue | 13.9 | 5.7 | ||||||||||||
Other current and noncurrent assets and liabilities | (36.3) | 17.9 | ||||||||||||
Net cash provided by operating activities of continuing operations | 92.6 | 351.5 | ||||||||||||
Net cash provided by operating activities of discontinued operations | 7.8 | — | ||||||||||||
Net cash provided by operating activities | 100.4 | 351.5 | ||||||||||||
Investing Activities: | ||||||||||||||
Additions to property, plant and equipment, net(1) | (44.9) | (44.0) | ||||||||||||
Proceeds from disposition of assets | 0.2 | — | ||||||||||||
Investments in non-controlled entities | (0.8) | — | ||||||||||||
Net cash used by investing activities of continuing operations | (45.5) | (44.0) | ||||||||||||
Net cash used by investing activities of discontinued operations | (1.1) | — | ||||||||||||
Net cash used by investing activities | (46.6) | (44.0) | ||||||||||||
Financing Activities: | ||||||||||||||
Distributions paid | (220.6) | (213.0) | ||||||||||||
Repurchases of common units, net(2) | (50.0) | (47.5) | ||||||||||||
Net commercial paper borrowings (payments) | 228.0 | (32.0) | ||||||||||||
Payments associated with settlement of equity-based incentive compensation | (8.9) | (9.9) | ||||||||||||
Net cash used by financing activities | (51.5) | (302.4) | ||||||||||||
Change in cash, cash equivalents and restricted cash | 2.3 | 5.1 | ||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 9.0 | 6.9 | ||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 11.3 | $ | 12.0 | ||||||||||
Supplemental non-cash investing and financing activities: | ||||||||||||||
(1) Additions to property, plant and equipment | $ | (39.4) | $ | (46.2) | ||||||||||
Changes in current liabilities related to capital expenditures | (5.5) | 2.2 | ||||||||||||
Additions to property, plant and equipment, net | $ | (44.9) | $ | (44.0) | ||||||||||
(2) Repurchases of common units | $ | (50.0) | $ | (64.3) | ||||||||||
Changes in accounts payable related to repurchases of common units | — | 16.8 | ||||||||||||
Repurchases of common units, net | $ | (50.0) | $ | (47.5) |
Common Unitholders | Accumulated Other Comprehensive Loss | Total Partners’ Capital | ||||||||||||||||||||||||
Balance, January 1, 2022 | $ | 2,054.8 | $ | (155.0) | $ | 1,899.8 | ||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||
Net income | 165.5 | — | 165.5 | |||||||||||||||||||||||
Total other comprehensive income | — | 2.1 | 2.1 | |||||||||||||||||||||||
Total comprehensive income | 165.5 | 2.1 | 167.6 | |||||||||||||||||||||||
Distributions | (220.6) | — | (220.6) | |||||||||||||||||||||||
Repurchases of common units | (50.0) | — | (50.0) | |||||||||||||||||||||||
Equity-based incentive compensation expense | 14.4 | — | 14.4 | |||||||||||||||||||||||
Issuance of common units in settlement of equity-based incentive plan awards | 0.7 | — | 0.7 | |||||||||||||||||||||||
Payments associated with settlement of equity-based incentive compensation | (8.9) | — | (8.9) | |||||||||||||||||||||||
Other | (0.3) | — | (0.3) | |||||||||||||||||||||||
Three Months Ended March 31, 2022 | $ | 1,955.6 | $ | (152.9) | $ | 1,802.7 | ||||||||||||||||||||
Balance, January 1, 2023 | $ | 1,778.8 | $ | (93.9) | $ | 1,684.9 | ||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||
Net income | 273.9 | — | 273.9 | |||||||||||||||||||||||
Total other comprehensive income | — | 1.3 | 1.3 | |||||||||||||||||||||||
Total comprehensive income | 273.9 | 1.3 | 275.2 | |||||||||||||||||||||||
Distributions | (213.0) | — | (213.0) | |||||||||||||||||||||||
Repurchases of common units | (64.3) | — | (64.3) | |||||||||||||||||||||||
Equity-based incentive compensation expense | 6.4 | — | 6.4 | |||||||||||||||||||||||
Issuance of common units in settlement of equity-based incentive plan awards | 2.3 | — | 2.3 | |||||||||||||||||||||||
Payments associated with settlement of equity-based incentive compensation | (9.9) | — | (9.9) | |||||||||||||||||||||||
Other | (0.2) | — | (0.2) | |||||||||||||||||||||||
Three Months Ended March 31, 2023 | $ | 1,774.0 | $ | (92.6) | $ | 1,681.4 | ||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||||
Transportation and terminals revenue | $ | 12.1 | ||||||||||||||||||||||||
Product sales revenue | 6.3 | |||||||||||||||||||||||||
Total revenue | 18.4 | |||||||||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||||||
Operating | 3.8 | |||||||||||||||||||||||||
Cost of product sales | 10.5 | |||||||||||||||||||||||||
General and administrative | 0.6 | |||||||||||||||||||||||||
Total costs and expenses | 14.9 | |||||||||||||||||||||||||
Income from discontinued operations | $ | 3.5 | ||||||||||||||||||||||||
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 March 31, 2022 | |||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Refined Products | Crude Oil | Intersegment Eliminations | Total | ||||||||||||||||||||||||||
Transportation and terminals revenue | $ | 309.5 | $ | 114.7 | $ | (1.3) | $ | 422.9 | |||||||||||||||||||||
Product sales revenue | 241.6 | 4.5 | — | 246.1 | |||||||||||||||||||||||||
Affiliate management fee revenue | 1.8 | 3.9 | — | 5.7 | |||||||||||||||||||||||||
Total revenue | 552.9 | 123.1 | (1.3) | 674.7 | |||||||||||||||||||||||||
Operating expenses | 88.2 | 38.8 | (2.8) | 124.2 | |||||||||||||||||||||||||
Cost of product sales | 233.1 | 10.3 | — | 243.4 | |||||||||||||||||||||||||
Other operating (income) expense | (0.1) | 2.1 | — | 2.0 | |||||||||||||||||||||||||
Earnings of non-controlled entities | (3.7) | (31.7) | — | (35.4) | |||||||||||||||||||||||||
Operating margin | 235.4 | 103.6 | 1.5 | 340.5 | |||||||||||||||||||||||||
Depreciation, amortization and impairment expense | 39.6 | 16.6 | 1.5 | 57.7 | |||||||||||||||||||||||||
G&A expense | 45.7 | 17.1 | — | 62.8 | |||||||||||||||||||||||||
Operating profit | $ | 150.1 | $ | 69.9 | $ | — | $ | 220.0 | |||||||||||||||||||||
Interest expense (net of interest income and interest capitalized) | 56.8 | ||||||||||||||||||||||||||||
Gain on disposition of assets | (0.2) | ||||||||||||||||||||||||||||
Other (income) expense | 0.6 | ||||||||||||||||||||||||||||
Income from continuing operations before provision for income taxes | $ | 162.8 | |||||||||||||||||||||||||||
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, 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 | |||||||||
Three Months Ended March 31, 2023 | |||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Refined Products | Crude Oil | Intersegment Eliminations | Total | ||||||||||||||||||||||||||
Transportation and terminals revenue | $ | 332.0 | $ | 124.3 | $ | (2.2) | $ | 454.1 | |||||||||||||||||||||
Product sales revenue | 386.5 | 23.6 | — | 410.1 | |||||||||||||||||||||||||
Affiliate management fee revenue | 1.6 | 3.9 | — | 5.5 | |||||||||||||||||||||||||
Total revenue | 720.1 | 151.8 | (2.2) | 869.7 | |||||||||||||||||||||||||
Operating expenses | 95.6 | 42.1 | (3.8) | 133.9 | |||||||||||||||||||||||||
Cost of product sales | 307.1 | 13.0 | — | 320.1 | |||||||||||||||||||||||||
Other operating (income) expense | (5.8) | — | — | (5.8) | |||||||||||||||||||||||||
Earnings of non-controlled entities | (13.6) | (12.6) | — | (26.2) | |||||||||||||||||||||||||
Operating margin | 336.8 | 109.3 | 1.6 | 447.7 | |||||||||||||||||||||||||
Depreciation, amortization and impairment expense | 37.7 | 16.5 | 1.6 | 55.8 | |||||||||||||||||||||||||
G&A expense | 43.5 | 16.9 | — | 60.4 | |||||||||||||||||||||||||
Operating profit | $ | 255.6 | $ | 75.9 | $ | — | $ | 331.5 | |||||||||||||||||||||
Interest expense (net of interest income and interest capitalized) | 56.1 | ||||||||||||||||||||||||||||
Other (income) expense | 0.6 | ||||||||||||||||||||||||||||
Income from continuing operations before provision for income taxes | $ | 274.8 | |||||||||||||||||||||||||||
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 March 31, 2022 | ||||||||||||||||||||||||||||||||
Refined Products | Crude Oil | Intersegment Eliminations | Total | |||||||||||||||||||||||||||||
Transportation | $ | 213.3 | $ | 55.0 | $ | — | $ | 268.3 | ||||||||||||||||||||||||
Terminalling | 23.3 | 6.3 | — | 29.6 | ||||||||||||||||||||||||||||
Storage | 39.5 | 27.0 | (1.3) | 65.2 | ||||||||||||||||||||||||||||
Ancillary services | 27.6 | 7.9 | — | 35.5 | ||||||||||||||||||||||||||||
Lease revenue | 5.8 | 18.5 | — | 24.3 | ||||||||||||||||||||||||||||
Transportation and terminals revenue | 309.5 | 114.7 | (1.3) | 422.9 | ||||||||||||||||||||||||||||
Product sales revenue | 241.6 | 4.5 | — | 246.1 | ||||||||||||||||||||||||||||
Affiliate management fee revenue | 1.8 | 3.9 | — | 5.7 | ||||||||||||||||||||||||||||
Total revenue | 552.9 | 123.1 | (1.3) | 674.7 | ||||||||||||||||||||||||||||
Revenue not under the guidance of ASC 606, Revenue from Contracts with Customers: | ||||||||||||||||||||||||||||||||
Lease revenue | (5.8) | (18.5) | — | (24.3) | ||||||||||||||||||||||||||||
(Gains) losses from futures contracts included in product sales revenue | 108.2 | 8.2 | — | 116.4 | ||||||||||||||||||||||||||||
Affiliate management fee revenue | (1.8) | (3.9) | — | (5.7) | ||||||||||||||||||||||||||||
Total revenue from contracts with customers under ASC 606 | $ | 653.5 | $ | 108.9 | $ | (1.3) | $ | 761.1 |
Three Months Ended March 31, 2023 | ||||||||||||||||||||||||||||||||
Refined Products | Crude Oil | Intersegment Eliminations | Total | |||||||||||||||||||||||||||||
Transportation | $ | 228.4 | $ | 58.3 | $ | — | $ | 286.7 | ||||||||||||||||||||||||
Terminalling | 31.0 | 18.0 | — | 49.0 | ||||||||||||||||||||||||||||
Storage | 37.8 | 25.0 | (2.2) | 60.6 | ||||||||||||||||||||||||||||
Ancillary services | 28.6 | 3.3 | — | 31.9 | ||||||||||||||||||||||||||||
Lease revenue | 6.2 | 19.7 | — | 25.9 | ||||||||||||||||||||||||||||
Transportation and terminals revenue | 332.0 | 124.3 | (2.2) | 454.1 | ||||||||||||||||||||||||||||
Product sales revenue | 386.5 | 23.6 | — | 410.1 | ||||||||||||||||||||||||||||
Affiliate management fee revenue | 1.6 | 3.9 | — | 5.5 | ||||||||||||||||||||||||||||
Total revenue | 720.1 | 151.8 | (2.2) | 869.7 | ||||||||||||||||||||||||||||
Revenue not under the guidance of ASC 606, Revenue from Contracts with Customers: | ||||||||||||||||||||||||||||||||
Lease revenue | (6.2) | (19.7) | — | (25.9) | ||||||||||||||||||||||||||||
(Gains) losses from futures contracts included in product sales revenue | 5.2 | 1.2 | — | 6.4 | ||||||||||||||||||||||||||||
Affiliate management fee revenue | (1.6) | (3.9) | — | (5.5) | ||||||||||||||||||||||||||||
Total revenue from contracts with customers under ASC 606 | $ | 717.5 | $ | 129.4 | $ | (2.2) | $ | 844.7 |
December 31, 2022 | March 31, 2023 | |||||||||||||
Accounts receivable from contracts with customers | $ | 217.0 | $ | 156.1 | ||||||||||
Contract assets | $ | 10.1 | $ | 12.4 | ||||||||||
Contract liabilities | $ | 112.7 | $ | 117.5 |
Refined Products | Crude Oil | Total | ||||||||||||||||||||||||
Balances at March 31, 2023 | $ | 2,119.3 | $ | 874.4 | $ | 2,993.7 | ||||||||||||||||||||
Remaining terms | 1 - 16 years | 1 - 9 years | ||||||||||||||||||||||||
Estimated revenues from UPOs to be recognized in the next 12 months | $ | 382.3 | $ | 235.2 | $ | 617.5 |
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”) | ||||||||
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 March 31, | ||||||||||||||||||||||||||
2022 | 2023 | |||||||||||||||||||||||||
Transportation and terminals revenue: | ||||||||||||||||||||||||||
BridgeTex, pipeline capacity and storage | $ | 11.0 | $ | 11.6 | ||||||||||||||||||||||
Double Eagle, throughput revenue | $ | 0.7 | $ | 0.6 | ||||||||||||||||||||||
Saddlehorn, storage revenue | $ | 0.6 | $ | 0.6 | ||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Seabrook, storage lease and ancillary services | $ | 4.2 | $ | 5.0 | ||||||||||||||||||||||
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, 2022 | ||||||||||||||||||||||||||
Trade Accounts Receivable | Other Accounts Receivable | Other Accounts Payable | ||||||||||||||||||||||||
BridgeTex | $ | 4.8 | $ | — | $ | 3.1 | ||||||||||||||||||||
Double Eagle | $ | 0.2 | $ | — | $ | — | ||||||||||||||||||||
HoustonLink | $ | — | $ | — | $ | 0.3 | ||||||||||||||||||||
MVP | $ | — | $ | 0.6 | $ | — | ||||||||||||||||||||
Saddlehorn | $ | — | $ | 0.2 | $ | — | ||||||||||||||||||||
Seabrook | $ | 0.3 | $ | — | $ | 0.9 |
March 31, 2023 | ||||||||||||||||||||||||||
Trade Accounts Receivable | Other Accounts Receivable | Other Accounts Payable | ||||||||||||||||||||||||
BridgeTex | $ | 5.3 | $ | — | $ | 1.9 | ||||||||||||||||||||
Double Eagle | $ | 0.2 | $ | — | $ | — | ||||||||||||||||||||
MVP | $ | — | $ | 0.7 | $ | — | ||||||||||||||||||||
Saddlehorn | $ | — | $ | 0.2 | $ | — | ||||||||||||||||||||
Seabrook | $ | 0.3 | $ | — | $ | 3.4 | ||||||||||||||||||||
December 31, 2016 | September 30, 2017 | |||||||||||||||
Trade Accounts Receivable | Other Accounts Receivable | Trade Accounts Receivable | Other Accounts Receivable | |||||||||||||
Double Eagle | $ | 0.3 | $ | — | $ | 0.5 | $ | — | ||||||||
MVP | $ | — | $ | — | $ | — | $ | 0.5 | ||||||||
Saddlehorn | $ | — | $ | 0.1 | $ | — | $ | 0.1 |
Investments at December 31, 2022 | $ | 894.0 | ||||||
Earnings of non-controlled entities: | ||||||||
Proportionate share of earnings | 26.6 | |||||||
Amortization of excess investment and capitalized interest | (0.4) | |||||||
Earnings of non-controlled entities | 26.2 | |||||||
Less: | ||||||||
Distributions from operations of non-controlled entities | 38.1 | |||||||
Investments at March 31, 2023 | $ | 882.1 | ||||||
December 31, 2022 | March 31, 2023 | ||||||||||
Refined products | $ | 150.2 | $ | 179.9 | |||||||
Transmix | 91.1 | 59.4 | |||||||||
LPGs | 66.7 | 27.9 | |||||||||
Crude oil | 42.5 | 53.7 | |||||||||
Additives | 5.7 | 5.7 | |||||||||
Total inventories | $ | 356.2 | $ | 326.6 |
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 | ||
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, 2016 | September 30, 2017 | December 31, 2022 | March 31, 2023 | |||||||||||||||||||
Commercial paper | $ | 50,000 | $ | 269,000 | Commercial paper | $ | 32.0 | $ | — | |||||||||||||
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 | 3.20% Notes due 2025 | 250.0 | 250.0 | |||||||||||||||||
5.00% Notes due 2026 | 650,000 | 650,000 | 5.00% Notes due 2026 | 650.0 | 650.0 | |||||||||||||||||
3.25% Notes due 2030 | 3.25% Notes due 2030 | 500.0 | 500.0 | |||||||||||||||||||
6.40% Notes due 2037 | 250,000 | 250,000 | 6.40% Notes due 2037 | 250.0 | 250.0 | |||||||||||||||||
4.20% Notes due 2042 | 250,000 | 250,000 | 4.20% Notes due 2042 | 250.0 | 250.0 | |||||||||||||||||
5.15% Notes due 2043 | 550,000 | 550,000 | 5.15% Notes due 2043 | 550.0 | 550.0 | |||||||||||||||||
4.20% Notes due 2045 | 250,000 | 250,000 | 4.20% Notes due 2045 | 250.0 | 250.0 | |||||||||||||||||
4.25% Notes due 2046 | 500,000 | 500,000 | 4.25% Notes due 2046 | 500.0 | 500.0 | |||||||||||||||||
4.20% Notes due 2047 | 4.20% Notes due 2047 | 500.0 | 500.0 | |||||||||||||||||||
4.85% Notes due 2049 | 4.85% Notes due 2049 | 500.0 | 500.0 | |||||||||||||||||||
3.95% Notes due 2050 | 3.95% Notes due 2050 | 800.0 | 800.0 | |||||||||||||||||||
Face value of long-term debt | 4,100,000 | 4,319,000 | Face value of long-term debt | 5,032.0 | 5,000.0 | |||||||||||||||||
Unamortized debt issuance costs(1) | (26,948 | ) | (25,106 | ) | Unamortized debt issuance costs(1) | (35.3) | (34.8) | |||||||||||||||
Net unamortized debt premium(1) | 6,530 | 4,241 | Net unamortized debt premium(1) | 18.3 | 18.3 | |||||||||||||||||
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 | Long-term debt, net | $ | 5,015.0 | $ | 4,983.5 | |||||||||||||
Three Months Ended March 31, 2022 | Three Months Ended March 31, 2023 | |||||||||||||||||||||||||||||||||||||
Third-Party Leases | Seabrook Lease | All Leases | Third-Party Leases | Seabrook Lease | All Leases | |||||||||||||||||||||||||||||||||
Total lease expense | $ | 6.2 | $ | 4.2 | $ | 10.4 | $ | 6.4 | $ | 5.0 | $ | 11.4 | ||||||||||||||||||||||||||
December 31, 2022 | March 31, 2023 | |||||||||||||||||||||||||||||||||||||
Third-Party Leases | Seabrook Lease | All Leases | Third-Party Leases | Seabrook Lease | All Leases | |||||||||||||||||||||||||||||||||
Current lease liability | $ | 21.2 | $ | 9.8 | $ | 31.0 | $ | 21.3 | $ | 9.8 | $ | 31.1 | ||||||||||||||||||||||||||
Long-term lease liability | $ | 82.1 | $ | 34.8 | $ | 116.9 | $ | 79.6 | $ | 32.7 | $ | 112.3 | ||||||||||||||||||||||||||
Right-of-use asset | $ | 104.9 | $ | 44.5 | $ | 149.4 | $ | 100.4 | $ | 42.5 | $ | 142.9 | ||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||
March 31, 2022 | March 31, 2023 | |||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||
Components of net periodic benefit costs: | ||||||||||||||||||||||||||
Service cost | $ | 7.1 | $ | 0.1 | $ | 4.5 | $ | 0.1 | ||||||||||||||||||
Interest cost | 2.7 | 0.1 | 3.3 | 0.1 | ||||||||||||||||||||||
Expected return on plan assets | (3.4) | — | (3.1) | — | ||||||||||||||||||||||
Amortization of actuarial loss | 1.1 | 0.1 | 0.4 | — | ||||||||||||||||||||||
Net periodic benefit cost | $ | 7.5 | $ | 0.3 | $ | 5.1 | $ | 0.2 |
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||
March 31, 2022 | March 31, 2023 | |||||||||||||||||||||||||
Gains (Losses) Included in AOCL | Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||
Beginning balance | $ | (92.8) | $ | (10.7) | $ | (42.2) | $ | (3.7) | ||||||||||||||||||
Recognition of actuarial loss amortization in income | 1.1 | 0.1 | 0.4 | — | ||||||||||||||||||||||
Ending balance | $ | (91.7) | $ | (10.6) | $ | (41.8) | $ | (3.7) |
Three Months Ended March 31, | ||||||||||||||||||||||||||
2022 | 2023 | |||||||||||||||||||||||||
Performance-based awards | $ | 8.0 | $ | 4.7 | ||||||||||||||||||||||
Time-based awards | 6.4 | 1.7 | ||||||||||||||||||||||||
Total | $ | 14.4 | $ | 6.4 | ||||||||||||||||||||||
Type of Contract/Accounting Methodology | Product Represented by the Contract and Associated Barrels | Maturity Dates | ||||||||||||
Commodity derivatives contract - Economic hedges | 4.1 million barrels of refined products and crude oil | Between April 2023 and December 2023 | ||||||||||||
Commodity derivatives contract - Economic hedges | 0.8 million barrels of gas liquids | Between April 2023 and December 2023 |
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 December 31, 2022 | $ | (18.2) | $ | 9.3 | $ | (8.9) | $ | 14.8 | $ | 5.9 | ||||||||||||||||||||||
As of March 31, 2023 | $ | (9.1) | $ | 5.5 | $ | (3.6) | $ | 18.5 | $ | 14.9 | ||||||||||||||||||||||
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 | ||||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||||
Derivative Losses Included in AOCL | 2022 | 2023 | ||||||||||||||||||||||||
Beginning balance | $ | (51.5) | $ | (48.0) | ||||||||||||||||||||||
Reclassification of net loss on cash flow hedges to income | 0.9 | 0.9 | ||||||||||||||||||||||||
Ending balance | $ | (50.6) | $ | (47.1) |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
Derivative Losses Included in AOCL | 2016 | 2017 | 2016 | 2017 | |||||||||||
Beginning balance | $ | (50,459 | ) | $ | (34,804 | ) | $ | (30,126 | ) | $ | (34,776 | ) | |||
Net gain (loss) on cash flow hedges | (3,169 | ) | (228 | ) | (24,278 | ) | (1,735 | ) | |||||||
Reclassification of net loss on cash flow hedges to income | 512 | 740 | 1,288 | 2,219 | |||||||||||
Ending balance | $ | (53,116 | ) | $ | (34,292 | ) | $ | (53,116 | ) | $ | (34,292 | ) |
Interest Rate Contracts | ||||||||||||||||||||
Location of Loss Reclassified from AOCL into Income | Amount of Loss Reclassified from AOCL into Income | |||||||||||||||||||
Three Months Ended March 31, 2022 and 2023 | Interest expense | $ | (0.9) | |||||||||||||||||
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 | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
Location of Gain (Loss) Recognized on Derivatives | September 30, | September 30, | ||||||||||||||||
Derivative Instrument | 2016 | 2017 | 2016 | 2017 | ||||||||||||||
Futures contracts | Product sales revenue | $ | (12,650 | ) | $ | (47,336 | ) | $ | (8,438 | ) | $ | (4,442 | ) | |||||
Futures contracts | Operating expenses | 4,212 | 663 | (1,192 | ) | 663 | ||||||||||||
Futures contracts | Cost of product sales | 831 | 19,660 | 3,643 | 19,713 | |||||||||||||
Total | $ | (7,607 | ) | $ | (27,013 | ) | $ | (5,987 | ) | $ | 15,934 |
Amount of Gain (Loss) Recognized on Derivatives | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
Location of Gain (Loss) Recognized on Derivatives | March 31, | |||||||||||||||||||||||||||||||
Derivative Instrument | 2022 | 2023 | ||||||||||||||||||||||||||||||
Commodity derivatives contracts | Product sales revenue | $ | (116.4) | $ | 6.4 | |||||||||||||||||||||||||||
Commodity derivatives contracts | Cost of product sales | 8.6 | 0.8 | |||||||||||||||||||||||||||||
Basis derivative agreement | Other operating income (expense) | (2.1) | — | |||||||||||||||||||||||||||||
Total | $ | (109.9) | $ | 7.2 |
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, 2022 | ||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||
Derivative Instrument | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||||||||||||||
Commodity derivatives contracts | Commodity derivatives contracts, net | $ | 9.3 | Commodity derivatives contracts, net | $ | 18.2 | ||||||||||||||||||||
March 31, 2023 | ||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||
Derivative Instrument | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||||||||||||||
Commodity derivatives contracts | Commodity derivatives contracts, net | $ | 5.5 | Commodity derivatives contracts, net | $ | 9.1 | ||||||||||||||||||||
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 | $ | 6,060 | Energy commodity derivatives contracts, net | $ | 33,719 | ||||||
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 | ||||||||
Assets (Liabilities) | Fair Value Measurements as of December 31, 2022 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 | $ | (8.9) | $ | (8.9) | $ | 1.4 | $ | (10.3) | $ | — | ||||||||||||||||||||||
Long-term receivables | $ | 8.3 | $ | 8.3 | $ | — | $ | — | $ | 8.3 | ||||||||||||||||||||||
Contractual obligations | $ | (9.6) | $ | (9.6) | $ | — | $ | — | $ | (9.6) | ||||||||||||||||||||||
Investment in Double Eagle | $ | 11.8 | $ | 11.8 | $ | — | $ | — | $ | 11.8 | ||||||||||||||||||||||
Debt | $ | (5,015.0) | $ | (4,232.5) | $ | — | $ | (4,232.5) | $ | — |
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 | ) | $ | — |
Assets (Liabilities) | Fair Value Measurements as of March 31, 2023 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 | $ | (3.6) | $ | (3.6) | $ | (0.1) | $ | (3.5) | $ | — | ||||||||||||||||||||||
Long-term receivables | $ | 8.9 | $ | 8.9 | $ | — | $ | — | $ | 8.9 | ||||||||||||||||||||||
Contractual obligations | $ | (9.6) | $ | (9.6) | $ | — | $ | — | $ | (9.6) | ||||||||||||||||||||||
Debt | $ | (4,983.5) | $ | (4,330.5) | $ | — | $ | (4,330.5) | $ | — |
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 | ) | $ | — |
203,033,837 | ||||||||
Units repurchased during 2023 | (1,198,222) | |||||||
January 2023—Settlement of employee LTIP awards | 223,168 | |||||||
During 2023—Other(1) | 36,817 | |||||||
Common units outstanding on March 31, 2023 | 202,095,600 | |||||||
Payment Date | Per Unit Distribution Amount | Total Distribution | ||||||||||||||||||||||||
2/14/2022 | $ | 1.0375 | $ | 220.6 | ||||||||||||||||||||||
5/13/2022 | 1.0375 | 219.5 | ||||||||||||||||||||||||
8/12/2022 | 1.0375 | 215.2 | ||||||||||||||||||||||||
11/14/2022 | 1.0475 | 214.7 | ||||||||||||||||||||||||
Total | $ | 4.1600 | $ | 870.0 | ||||||||||||||||||||||
2/14/2023 | $ | 1.0475 | $ | 213.0 | ||||||||||||||||||||||
5/15/2023(1) | 1.0475 | 211.7 | ||||||||||||||||||||||||
Total | $ | 2.0950 | $ | 424.7 | ||||||||||||||||||||||
Three Months Ended March 31, | Variance Favorable (Unfavorable) | ||||||||||||||||||||||
2022 | 2023 | $ Change | % Change | ||||||||||||||||||||
Financial Highlights ($ in millions, except operating statistics) | |||||||||||||||||||||||
Transportation and terminals revenue: | |||||||||||||||||||||||
Refined products | $ | 309.5 | $ | 332.0 | $ | 22.5 | 7 | ||||||||||||||||
Crude oil | 114.7 | 124.3 | 9.6 | 8 | |||||||||||||||||||
Intersegment eliminations | (1.3) | (2.2) | (0.9) | (69) | |||||||||||||||||||
Total transportation and terminals revenue | 422.9 | 454.1 | 31.2 | 7 | |||||||||||||||||||
Affiliate management fee revenue | 5.7 | 5.5 | (0.2) | (4) | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Refined products | 88.2 | 95.6 | (7.4) | (8) | |||||||||||||||||||
Crude oil | 38.8 | 42.1 | (3.3) | (9) | |||||||||||||||||||
Intersegment eliminations | (2.8) | (3.8) | 1.0 | 36 | |||||||||||||||||||
Total operating expenses | 124.2 | 133.9 | (9.7) | (8) | |||||||||||||||||||
Product margin: | |||||||||||||||||||||||
Product sales revenue | 246.1 | 410.1 | 164.0 | 67 | |||||||||||||||||||
Cost of product sales | 243.4 | 320.1 | (76.7) | (32) | |||||||||||||||||||
Product margin | 2.7 | 90.0 | 87.3 | 3,233 | |||||||||||||||||||
Other operating income (expense) | (2.0) | 5.8 | 7.8 | n/a | |||||||||||||||||||
Earnings of non-controlled entities | 35.4 | 26.2 | (9.2) | (26) | |||||||||||||||||||
Operating margin | 340.5 | 447.7 | 107.2 | 31 | |||||||||||||||||||
Depreciation, amortization and impairment expense | 57.7 | 55.8 | 1.9 | 3 | |||||||||||||||||||
G&A expense | 62.8 | 60.4 | 2.4 | 4 | |||||||||||||||||||
Operating profit | 220.0 | 331.5 | 111.5 | 51 | |||||||||||||||||||
Interest expense (net of interest income and interest capitalized) | 56.8 | 56.1 | 0.7 | 1 | |||||||||||||||||||
Gain on disposition of assets | (0.2) | — | (0.2) | (100) | |||||||||||||||||||
Other (income) expense | 0.6 | 0.6 | — | — | |||||||||||||||||||
Income from continuing operations before provision for income taxes | 162.8 | 274.8 | 112.0 | 69 | |||||||||||||||||||
Provision for income taxes | 0.8 | 0.9 | (0.1) | (13) | |||||||||||||||||||
Income from continuing operations | 162.0 | 273.9 | 111.9 | 69 | |||||||||||||||||||
Income from discontinued operations | 3.5 | — | (3.5) | (100) | |||||||||||||||||||
Net income | $ | 165.5 | $ | 273.9 | $ | 108.4 | 65 | ||||||||||||||||
Operating Statistics | |||||||||||||||||||||||
Refined products: | |||||||||||||||||||||||
Transportation revenue per barrel shipped | $ | 1.635 | $ | 1.864 | |||||||||||||||||||
Volume shipped (million barrels): | |||||||||||||||||||||||
Gasoline | 75.6 | 68.5 | |||||||||||||||||||||
Distillates | 47.6 | 46.9 | |||||||||||||||||||||
Aviation fuel | 7.4 | 8.8 | |||||||||||||||||||||
LPGs | 0.6 | — | |||||||||||||||||||||
Total volume shipped | 131.2 | 124.2 | |||||||||||||||||||||
Crude oil: | |||||||||||||||||||||||
Magellan 100%-owned assets: | |||||||||||||||||||||||
Transportation revenue per barrel shipped(1) | $ | 0.843 | $ | 0.604 | |||||||||||||||||||
Volume shipped (million barrels)(1) | 41.9 | 64.1 | |||||||||||||||||||||
Terminal average utilization (million barrels per month) | 25.2 | 23.4 | |||||||||||||||||||||
Select joint venture pipelines: | |||||||||||||||||||||||
BridgeTex - volume shipped (million barrels)(2) | 25.5 | 12.8 | |||||||||||||||||||||
Saddlehorn - volume shipped (million barrels)(2) | 20.0 | 21.8 |
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) | ||||||||||||
2016 | 2017 | $ Change | % Change | ||||||||||
Financial Highlights ($ in millions, except operating statistics) | |||||||||||||
Transportation and terminals revenue: | |||||||||||||
Refined products | $ | 739.9 | $ | 808.8 | $ | 68.9 | 9 | ||||||
Crude oil | 303.2 | 329.8 | 26.6 | 9 | |||||||||
Marine storage | 132.8 | 136.7 | 3.9 | 3 | |||||||||
Intersegment eliminations | (0.1 | ) | (2.4 | ) | (2.3 | ) | n/a | ||||||
Total transportation and terminals revenue | 1,175.8 | 1,272.9 | 97.1 | 8 | |||||||||
Affiliate management fee revenue | 11.1 | 12.9 | 1.8 | 16 | |||||||||
Operating expenses: | |||||||||||||
Refined products | 279.9 | 312.9 | (33.0 | ) | (12) | ||||||||
Crude oil | 66.2 | 90.0 | (23.8 | ) | (36) | ||||||||
Marine storage | 49.8 | 45.8 | 4.0 | 8 | |||||||||
Intersegment eliminations | (3.9 | ) | (6.4 | ) | 2.5 | 64 | |||||||
Total operating expenses | 392.0 | 442.3 | (50.3 | ) | (13) | ||||||||
Product margin: | |||||||||||||
Product sales revenue | 403.6 | 548.6 | 145.0 | 36 | |||||||||
Cost of product sales | 327.5 | 440.7 | (113.2 | ) | (35) | ||||||||
Product margin | 76.1 | 107.9 | 31.8 | 42 | |||||||||
Earnings of non-controlled entities | 51.5 | 78.2 | 26.7 | 52 | |||||||||
Operating margin | 922.5 | 1,029.6 | 107.1 | 12 | |||||||||
Depreciation and amortization expense | 134.1 | 146.1 | (12.0 | ) | (9) | ||||||||
G&A expense | 110.8 | 120.9 | (10.1 | ) | (9) | ||||||||
Operating profit | 677.6 | 762.6 | 85.0 | 13 | |||||||||
Interest expense (net of interest income and interest capitalized) | 120.4 | 143.1 | (22.7 | ) | (19) | ||||||||
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 | |||||||
Income before provision for income taxes | 591.8 | 634.3 | 42.5 | 7 | |||||||||
Provision for income taxes | 2.3 | 2.7 | (0.4 | ) | (17) | ||||||||
Net income | $ | 589.5 | $ | 631.6 | $ | 42.1 | 7 | ||||||
Operating Statistics: | |||||||||||||
Refined products: | |||||||||||||
Transportation revenue per barrel shipped | $ | 1.451 | $ | 1.489 | |||||||||
Volume shipped (million barrels): | |||||||||||||
Gasoline | 204.9 | 218.7 | |||||||||||
Distillates | 110.0 | 119.6 | |||||||||||
Aviation fuel | 19.6 | 20.2 | |||||||||||
Liquefied petroleum gases | 9.9 | 9.6 | |||||||||||
Total volume shipped | 344.4 | 368.1 | |||||||||||
Crude oil: | |||||||||||||
Magellan 100%-owned assets: | |||||||||||||
Transportation revenue per barrel shipped | $ | 1.325 | $ | 1.412 | |||||||||
Volume shipped (million barrels) | 139.5 | 137.0 | |||||||||||
Crude oil terminal average utilization (million barrels per month) | 14.7 | 15.5 | |||||||||||
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 | |||||||||||
Three Months Ended March 31, | ||||||||||||||||||||
2022 | 2023 | |||||||||||||||||||
Net income | $ | 165.5 | $ | 273.9 | ||||||||||||||||
Interest expense, net | 56.8 | 56.1 | ||||||||||||||||||
Depreciation, amortization and impairment(1) | 57.7 | 56.4 | ||||||||||||||||||
Equity-based incentive compensation(2) | 5.5 | (3.5) | ||||||||||||||||||
Gain on disposition of assets(3) | (0.2) | — | ||||||||||||||||||
Commodity-related adjustments: | ||||||||||||||||||||
Derivative (gains) losses recognized in the period associated with future transactions(4) | 56.7 | (0.6) | ||||||||||||||||||
Derivative gains (losses) recognized in previous periods associated with transactions completed in the period(4) | (11.2) | (5.8) | ||||||||||||||||||
Inventory valuation adjustments(5) | 2.8 | (6.4) | ||||||||||||||||||
Total commodity-related adjustments | 48.3 | (12.8) | ||||||||||||||||||
Distributions from operations of non-controlled entities in excess of earnings | 3.0 | 11.9 | ||||||||||||||||||
Adjusted EBITDA | 336.6 | 382.0 | ||||||||||||||||||
Interest expense, net, excluding debt issuance cost amortization | (56.0) | (55.2) | ||||||||||||||||||
Maintenance capital(6) | (15.2) | (14.2) | ||||||||||||||||||
Distributable cash flow | $ | 265.4 | $ | 312.6 | ||||||||||||||||
Expansion capital(7) | (26.1) | (32.0) | ||||||||||||||||||
Proceeds from disposition of assets(3) | 0.2 | — | ||||||||||||||||||
Free cash flow | $ | 239.5 | $ | 280.6 | ||||||||||||||||
Distributions paid(8) | (220.6) | (213.0) | ||||||||||||||||||
Free cash flow after distributions | $ | 18.9 | $ | 67.6 | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2022 | 2023 | |||||||||||||
Net cash provided by operating activities | $ | 100.4 | $ | 351.5 | ||||||||||
Changes in operating assets and liabilities | 145.5 | (2.5) | ||||||||||||
Net cash used by investing activities | (46.6) | (44.0) | ||||||||||||
Payments associated with settlement of equity-based incentive compensation | (8.9) | (9.9) | ||||||||||||
Settlement cost, amortization of prior service credit and actuarial loss | (1.2) | (0.4) | ||||||||||||
Changes in accrued capital items | 5.5 | (2.2) | ||||||||||||
Commodity-related adjustments(1) | 48.3 | (12.8) | ||||||||||||
Other | (3.5) | 0.9 | ||||||||||||
Free cash flow | $ | 239.5 | $ | 280.6 | ||||||||||
Distributions paid | (220.6) | (213.0) | ||||||||||||
Free cash flow after distributions | $ | 18.9 | $ | 67.6 | ||||||||||
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 | 2023 | 2024-2027 | Beyond 2027 | ||||||||||||||||||||
Forward purchase contracts – notional value | $ | 389.8 | $ | 163.5 | $ | 135.0 | $ | 91.3 | |||||||||||||||
Forward purchase contracts – barrels | 9.3 | 2.9 | 3.7 | 2.7 | |||||||||||||||||||
Forward sales contracts – notional value | $ | 98.1 | $ | 98.1 | $ | — | $ | — | |||||||||||||||
Forward sales contracts – barrels | 1.2 | 1.2 | — | — |
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)(1) | ||||||||||||||||||||||
January 1-31, 2023 | — | $ | — | — | $ | — | ||||||||||||||||||||
February 1-28, 2023 | — | $ | — | — | $ | — | ||||||||||||||||||||
March 1-31, 2023 | 1,198,222 | $ | 53.65 | 1,198,222 | $ | 163.4 | ||||||||||||||||||||
Year-to-Date 2023 | 1,198,222 | $ | 53.65 | 1,198,222 | ||||||||||||||||||||||
Exhibit Number | Description | ||||||||||||||||||||||||||||||||||
Exhibit | — | Magellan Midstream Holdings GP, LLC Executive Severance Pay Plan and Summary Plan Description, amended and restated effective January 24, 2023. (filed as Exhibit 10(p) to Form 10-K filed February 21, 2023) | |||||||||||||||||||||||||||||||||
Exhibit 31.1 | — | ||||||||||||||||||||||||||||||||||
Certification of Aaron L. Milford, principal | |||||||||||||||||||||||||||||||||||
Exhibit | — | ||||||||||||||||||||||||||||||||||
Exhibit | — | ||||||||||||||||||||||||||||||||||
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. (Registrant) | |||||||||
By: | MAGELLAN GP, LLC, | ||||||||
its general partner | |||||||||
By: | /s/ | ||||||||
Jeff L. | |||||||||
Holman Executive Vice President, Chief Financial Officer | |||||||||