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 | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2022 | 2023 | 2022 | 2023 | ||||||||||||||||||||
Transportation and terminals revenue | $ | 469.3 | $ | 503.2 | $ | 892.2 | $ | 957.3 | |||||||||||||||
Product sales revenue | 313.7 | 368.7 | 559.8 | 778.8 | |||||||||||||||||||
Affiliate management fee revenue | 5.6 | 5.3 | 11.3 | 10.8 | |||||||||||||||||||
Total revenue | 788.6 | 877.2 | 1,463.3 | 1,746.9 | |||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Operating | 180.1 | 170.1 | 304.3 | 304.0 | |||||||||||||||||||
Cost of product sales | 282.3 | 296.4 | 525.7 | 616.5 | |||||||||||||||||||
Depreciation, amortization and impairment | 58.8 | 56.6 | 116.5 | 112.4 | |||||||||||||||||||
General and administrative | 56.9 | 74.5 | 119.7 | 134.9 | |||||||||||||||||||
Total costs and expenses | 578.1 | 597.6 | 1,066.2 | 1,167.8 | |||||||||||||||||||
Other operating income (expense) | 3.0 | (0.5) | 1.0 | 5.3 | |||||||||||||||||||
Earnings of non-controlled entities | 26.5 | 15.9 | 61.9 | 42.1 | |||||||||||||||||||
Operating profit | 240.0 | 295.0 | 460.0 | 626.5 | |||||||||||||||||||
Interest expense | 57.8 | 57.2 | 115.1 | 114.9 | |||||||||||||||||||
Interest capitalized | (0.3) | (0.9) | (0.7) | (1.5) | |||||||||||||||||||
Interest income | (0.2) | (1.5) | (0.3) | (2.5) | |||||||||||||||||||
Gain on disposition of assets | — | (1.1) | (0.2) | (1.1) | |||||||||||||||||||
Other (income) expense | 0.6 | 1.0 | 1.2 | 1.6 | |||||||||||||||||||
Income from continuing operations before provision for income taxes | 182.1 | 240.3 | 344.9 | 515.1 | |||||||||||||||||||
Provision for income taxes | 0.3 | 1.6 | 1.1 | 2.5 | |||||||||||||||||||
Income from continuing operations | 181.8 | 238.7 | 343.8 | 512.6 | |||||||||||||||||||
Income from discontinued operations (including gain on disposition of assets of $162.4 million in June 2022) | 172.1 | — | 175.6 | — | |||||||||||||||||||
Net income | $ | 353.9 | $ | 238.7 | $ | 519.4 | $ | 512.6 | |||||||||||||||
Earnings per common unit | |||||||||||||||||||||||
Basic: | |||||||||||||||||||||||
Continuing operations | $ | 0.86 | $ | 1.18 | $ | 1.62 | $ | 2.52 | |||||||||||||||
Discontinued operations | 0.81 | — | 0.83 | — | |||||||||||||||||||
Net income per common unit | $ | 1.67 | $ | 1.18 | $ | 2.45 | $ | 2.52 | |||||||||||||||
Weighted average number of common units outstanding | 211.6 | 202.9 | 212.3 | 203.4 | |||||||||||||||||||
Diluted: | |||||||||||||||||||||||
Continuing operations | $ | 0.86 | $ | 1.18 | $ | 1.62 | $ | 2.52 | |||||||||||||||
Discontinued operations | 0.81 | — | 0.83 | — | |||||||||||||||||||
Net income per common unit | $ | 1.67 | $ | 1.18 | $ | 2.45 | $ | 2.52 | |||||||||||||||
Weighted average number of common units outstanding | 211.7 | 203.1 | 212.3 | 203.5 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2023 | 2022 | 2023 | ||||||||||||||||||||
Net income | $ | 353.9 | $ | 238.7 | $ | 519.4 | $ | 512.6 | |||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||
Derivative activity: | |||||||||||||||||||||||
Reclassification of net loss on cash flow hedges to income | 0.9 | 0.9 | 1.8 | 1.8 | |||||||||||||||||||
Changes in employee benefit plan assets and benefit obligations recognized in other comprehensive income: | |||||||||||||||||||||||
Net actuarial gain (loss) | 1.1 | (2.6) | 1.1 | (2.6) | |||||||||||||||||||
Recognition of prior service credit amortization in income | (0.1) | (0.1) | (0.1) | (0.1) | |||||||||||||||||||
Recognition of actuarial loss amortization in income | 1.2 | 0.5 | 2.4 | 0.9 | |||||||||||||||||||
Total other comprehensive income (loss) | 3.1 | (1.3) | 5.2 | — | |||||||||||||||||||
Comprehensive income | $ | 357.0 | $ | 237.4 | $ | 524.6 | $ | 512.6 | |||||||||||||||
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 | June 30, 2023 | ||||||||||
ASSETS | (Unaudited) | ||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 2.0 | $ | 128.4 | |||||||
Trade accounts receivable | 219.9 | 169.5 | |||||||||
Other accounts receivable | 44.4 | 34.8 | |||||||||
Inventories | 356.2 | 330.1 | |||||||||
Commodity derivatives contracts, net | 6.5 | 6.1 | |||||||||
Commodity derivatives deposits | 14.8 | 16.2 | |||||||||
Assets held for sale | 9.9 | 9.9 | |||||||||
Other current assets | 56.8 | 42.3 | |||||||||
Total current assets | 710.5 | 737.3 | |||||||||
Property, plant and equipment | 8,163.9 | 8,266.9 | |||||||||
Less: accumulated depreciation | 2,333.6 | 2,440.7 | |||||||||
Net property, plant and equipment | 5,830.3 | 5,826.2 | |||||||||
Investments in non-controlled entities | 894.0 | 859.3 | |||||||||
Right-of-use asset, operating leases | 149.4 | 95.4 | |||||||||
Long-term receivables | 8.3 | 8.1 | |||||||||
Goodwill | 50.4 | 50.4 | |||||||||
Other intangibles (less accumulated amortization of $14.7 and $16.1 at December 31, 2022 and June 30, 2023, respectively) | 41.0 | 39.6 | |||||||||
Restricted cash | 4.9 | — | |||||||||
Other noncurrent assets | 18.9 | 12.9 | |||||||||
Total assets | $ | 7,707.7 | $ | 7,629.2 | |||||||
LIABILITIES AND PARTNERS’ CAPITAL | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 108.2 | $ | 137.7 | |||||||
Accrued payroll and benefits | 76.8 | 54.2 | |||||||||
Accrued interest payable | 59.0 | 59.0 | |||||||||
Accrued taxes other than income | 86.0 | 65.3 | |||||||||
Deferred revenue | 103.9 | 94.1 | |||||||||
Accrued product liabilities | 209.3 | 209.6 | |||||||||
Commodity derivatives contracts, net | 15.4 | 13.2 | |||||||||
Current portion of operating lease liability | 31.0 | 21.3 | |||||||||
Other current liabilities | 35.9 | 26.7 | |||||||||
Total current liabilities | 725.5 | 681.1 | |||||||||
Long-term debt, net | 5,015.0 | 4,984.1 | |||||||||
Long-term operating lease liability | 116.9 | 76.7 | |||||||||
Long-term pension and benefits | 87.4 | 91.6 | |||||||||
Other noncurrent liabilities | 78.0 | 81.2 | |||||||||
Commitments and contingencies | |||||||||||
Partners’ capital: | |||||||||||
Common unitholders (203.0 units and 202.1 units outstanding at December 31, 2022 and June 30, 2023, respectively) | 1,778.8 | 1,808.4 | |||||||||
Accumulated other comprehensive loss | (93.9) | (93.9) | |||||||||
Total partners’ capital | 1,684.9 | 1,714.5 | |||||||||
Total liabilities and partners’ capital | $ | 7,707.7 | $ | 7,629.2 | |||||||
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 | ) |
Six Months Ended | ||||||||||||||
June 30, | ||||||||||||||
2022 | 2023 | |||||||||||||
Operating Activities: | ||||||||||||||
Net income | $ | 519.4 | $ | 512.6 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Income from discontinued operations | (175.6) | — | ||||||||||||
Depreciation, amortization and impairment expense | 116.5 | 113.6 | ||||||||||||
Gain on disposition of assets | (0.2) | (1.1) | ||||||||||||
Earnings of non-controlled entities | (61.9) | (42.1) | ||||||||||||
Distributions from operations of non-controlled entities | 78.9 | 76.8 | ||||||||||||
Equity-based incentive compensation expense | 22.9 | 14.2 | ||||||||||||
Settlement cost, amortization of prior service credit and actuarial loss | 2.3 | 0.8 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Trade accounts receivable and other accounts receivable | (10.0) | 60.0 | ||||||||||||
Inventories | (47.9) | 26.1 | ||||||||||||
Accounts payable | 6.1 | 26.5 | ||||||||||||
Accrued payroll and benefits | (16.9) | (22.6) | ||||||||||||
Accrued taxes other than income | (12.9) | (20.7) | ||||||||||||
Accrued product liabilities | 33.1 | 0.3 | ||||||||||||
Deferred revenue | (6.6) | (9.8) | ||||||||||||
Other current and noncurrent assets and liabilities | (73.4) | 21.4 | ||||||||||||
Net cash provided by operating activities of continuing operations | 373.8 | 756.0 | ||||||||||||
Net cash provided by operating activities of discontinued operations | 23.5 | — | ||||||||||||
Net cash provided by operating activities | 397.3 | 756.0 | ||||||||||||
Investing Activities: | ||||||||||||||
Additions to property, plant and equipment, net(1) | (86.1) | (95.3) | ||||||||||||
Proceeds from disposition of assets | 0.2 | 1.1 | ||||||||||||
Investments in non-controlled entities | (0.9) | — | ||||||||||||
Net cash used by investing activities of continuing operations | (86.8) | (94.2) | ||||||||||||
Net cash provided by investing activities of discontinued operations | 448.4 | — | ||||||||||||
Net cash provided (used) by investing activities | 361.6 | (94.2) | ||||||||||||
Financing Activities: | ||||||||||||||
Distributions paid | (440.1) | (424.7) | ||||||||||||
Repurchases of common units, net(2) | (219.0) | (73.7) | ||||||||||||
Net commercial paper payments | (89.0) | (32.0) | ||||||||||||
Payments associated with settlement of equity-based incentive compensation | (8.9) | (9.9) | ||||||||||||
Net cash used by financing activities | (757.0) | (540.3) | ||||||||||||
Change in cash, cash equivalents and restricted cash | 1.9 | 121.5 | ||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 9.0 | 6.9 | ||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 10.9 | $ | 128.4 | ||||||||||
Supplemental non-cash investing and financing activities: | ||||||||||||||
(1) Additions to property, plant and equipment | $ | (85.3) | $ | (108.3) | ||||||||||
Changes in current liabilities related to capital expenditures | (0.8) | 13.0 | ||||||||||||
Additions to property, plant and equipment, net | $ | (86.1) | $ | (95.3) | ||||||||||
(2) Repurchases of common units | $ | (239.6) | $ | (64.3) | ||||||||||
Changes in accounts payable related to repurchases of common units | 20.6 | (9.4) | ||||||||||||
Repurchases of common units, net | $ | (219.0) | $ | (73.7) |
Common Unitholders | Accumulated Other Comprehensive Loss | Total Partners’ Capital | ||||||||||||||||||||||||
Balance, April 1, 2022 | $ | 1,955.6 | $ | (152.9) | $ | 1,802.7 | ||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||
Net income | 353.9 | — | 353.9 | |||||||||||||||||||||||
Total other comprehensive income | — | 3.1 | 3.1 | |||||||||||||||||||||||
Total comprehensive income | 353.9 | 3.1 | 357.0 | |||||||||||||||||||||||
Distributions | (219.5) | — | (219.5) | |||||||||||||||||||||||
Repurchases of common units | (189.6) | — | (189.6) | |||||||||||||||||||||||
Equity-based incentive compensation expense | 8.5 | — | 8.5 | |||||||||||||||||||||||
Issuance of common units in settlement of equity-based incentive plan awards | 0.4 | — | 0.4 | |||||||||||||||||||||||
Other | (0.1) | — | (0.1) | |||||||||||||||||||||||
Three Months Ended June 30, 2022 | $ | 1,909.2 | $ | (149.8) | $ | 1,759.4 | ||||||||||||||||||||
Balance, April 1, 2023 | $ | 1,774.0 | $ | (92.6) | $ | 1,681.4 | ||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||
Net income | 238.7 | — | 238.7 | |||||||||||||||||||||||
Total other comprehensive loss | — | (1.3) | (1.3) | |||||||||||||||||||||||
Total comprehensive income (loss) | 238.7 | (1.3) | 237.4 | |||||||||||||||||||||||
Distributions | (211.7) | — | (211.7) | |||||||||||||||||||||||
Equity-based incentive compensation expense | 7.8 | — | 7.8 | |||||||||||||||||||||||
Other | (0.4) | — | (0.4) | |||||||||||||||||||||||
Three Months Ended June 30, 2023 | $ | 1,808.4 | $ | (93.9) | $ | 1,714.5 | ||||||||||||||||||||
See notes to consolidated financial statements. |
MAGELLAN MIDSTREAM PARTNERS, L.P. CONSOLIDATED STATEMENTS OF PARTNERS’ CAPITAL (Continued) (Unaudited, in millions) | ||||||||||||||||||||||||||
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 | 519.4 | — | 519.4 | |||||||||||||||||||||||
Total other comprehensive income | — | 5.2 | 5.2 | |||||||||||||||||||||||
Total comprehensive income | 519.4 | 5.2 | 524.6 | |||||||||||||||||||||||
Distributions | (440.1) | — | (440.1) | |||||||||||||||||||||||
Repurchases of common units | (239.6) | — | (239.6) | |||||||||||||||||||||||
Equity-based incentive compensation expense | 22.9 | — | 22.9 | |||||||||||||||||||||||
Issuance of common units in settlement of equity-based incentive plan awards | 1.1 | — | 1.1 | |||||||||||||||||||||||
Payments associated with settlement of equity-based incentive compensation | (8.9) | — | (8.9) | |||||||||||||||||||||||
Other | (0.4) | — | (0.4) | |||||||||||||||||||||||
Six Months Ended June 30, 2022 | $ | 1,909.2 | $ | (149.8) | $ | 1,759.4 | ||||||||||||||||||||
Balance, January 1, 2023 | $ | 1,778.8 | $ | (93.9) | $ | 1,684.9 | ||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||
Net income | 512.6 | — | 512.6 | |||||||||||||||||||||||
Total comprehensive income | 512.6 | — | 512.6 | |||||||||||||||||||||||
Distributions | (424.7) | — | (424.7) | |||||||||||||||||||||||
Repurchases of common units | (64.3) | — | (64.3) | |||||||||||||||||||||||
Equity-based incentive compensation expense | 14.2 | — | 14.2 | |||||||||||||||||||||||
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 | (0.6) | — | (0.6) | |||||||||||||||||||||||
Six Months Ended June 30, 2023 | $ | 1,808.4 | $ | (93.9) | $ | 1,714.5 | ||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2022 | 2022 | |||||||||||||||||||||||||
Transportation and terminals revenue | $ | 9.0 | $ | 21.1 | ||||||||||||||||||||||
Product sales revenue | 23.7 | 30.0 | ||||||||||||||||||||||||
Total revenue | 32.7 | 51.1 | ||||||||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||||||
Operating | 4.2 | 8.0 | ||||||||||||||||||||||||
Cost of product sales | 18.3 | 28.8 | ||||||||||||||||||||||||
General and administrative | 0.5 | 1.1 | ||||||||||||||||||||||||
Total costs and expenses | 23.0 | 37.9 | ||||||||||||||||||||||||
Gain on disposition of assets | (162.4) | (162.4) | ||||||||||||||||||||||||
Income from discontinued operations | $ | 172.1 | $ | 175.6 | ||||||||||||||||||||||
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 June 30, 2022 | |||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Refined Products | Crude Oil | Intersegment Eliminations | Total | ||||||||||||||||||||||||||
Transportation and terminals revenue | $ | 349.2 | $ | 121.4 | $ | (1.3) | $ | 469.3 | |||||||||||||||||||||
Product sales revenue | 291.0 | 22.7 | — | 313.7 | |||||||||||||||||||||||||
Affiliate management fee revenue | 1.7 | 3.9 | — | 5.6 | |||||||||||||||||||||||||
Total revenue | 641.9 | 148.0 | (1.3) | 788.6 | |||||||||||||||||||||||||
Operating expenses | 136.3 | 46.6 | (2.8) | 180.1 | |||||||||||||||||||||||||
Cost of product sales | 260.6 | 21.7 | — | 282.3 | |||||||||||||||||||||||||
Other operating (income) expense | (3.0) | — | — | (3.0) | |||||||||||||||||||||||||
(Earnings) losses of non-controlled entities | 2.0 | (28.5) | — | (26.5) | |||||||||||||||||||||||||
Segment operating margin | 246.0 | 108.2 | 1.5 | 355.7 | |||||||||||||||||||||||||
Depreciation, amortization and impairment expense | 39.2 | 18.1 | 1.5 | 58.8 | |||||||||||||||||||||||||
G&A expense | 40.3 | 16.6 | — | 56.9 | |||||||||||||||||||||||||
Operating profit | $ | 166.5 | $ | 73.5 | $ | — | $ | 240.0 | |||||||||||||||||||||
Interest expense (net of interest income and interest capitalized) | 57.3 | ||||||||||||||||||||||||||||
Other (income) expense | 0.6 | ||||||||||||||||||||||||||||
Income from continuing operations before provision for income taxes | $ | 182.1 | |||||||||||||||||||||||||||
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, 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 June 30, 2023 | |||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Refined Products | Crude Oil | Intersegment Eliminations | Total | ||||||||||||||||||||||||||
Transportation and terminals revenue | $ | 389.9 | $ | 115.3 | $ | (2.0) | $ | 503.2 | |||||||||||||||||||||
Product sales revenue | 322.8 | 45.9 | — | 368.7 | |||||||||||||||||||||||||
Affiliate management fee revenue | 1.5 | 3.8 | — | 5.3 | |||||||||||||||||||||||||
Total revenue | 714.2 | 165.0 | (2.0) | 877.2 | |||||||||||||||||||||||||
Operating expenses | 129.1 | 44.5 | (3.5) | 170.1 | |||||||||||||||||||||||||
Cost of product sales | 260.9 | 35.5 | — | 296.4 | |||||||||||||||||||||||||
Other operating (income) expense | 0.4 | 0.1 | — | 0.5 | |||||||||||||||||||||||||
Earnings of non-controlled entities | (0.2) | (15.7) | — | (15.9) | |||||||||||||||||||||||||
Segment operating margin | 324.0 | 100.6 | 1.5 | 426.1 | |||||||||||||||||||||||||
Depreciation, amortization and impairment expense | 37.3 | 17.8 | 1.5 | 56.6 | |||||||||||||||||||||||||
G&A expense | 53.1 | 21.4 | — | 74.5 | |||||||||||||||||||||||||
Operating profit | $ | 233.6 | $ | 61.4 | $ | — | $ | 295.0 | |||||||||||||||||||||
Interest expense (net of interest income and interest capitalized) | 54.8 | ||||||||||||||||||||||||||||
Gain on disposition of assets | (1.1) | ||||||||||||||||||||||||||||
Other (income) expense | 1.0 | ||||||||||||||||||||||||||||
Income from continuing operations before provision for income taxes | $ | 240.3 | |||||||||||||||||||||||||||
Six Months Ended June 30, 2022 | |||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Refined Products | Crude Oil | Intersegment Eliminations | Total | ||||||||||||||||||||||||||
Transportation and terminals revenue | $ | 658.7 | $ | 236.1 | $ | (2.6) | $ | 892.2 | |||||||||||||||||||||
Product sales revenue | 532.6 | 27.2 | — | 559.8 | |||||||||||||||||||||||||
Affiliate management fee revenue | 3.5 | 7.8 | — | 11.3 | |||||||||||||||||||||||||
Total revenue | 1,194.8 | 271.1 | (2.6) | 1,463.3 | |||||||||||||||||||||||||
Operating expense | 224.5 | 85.4 | (5.6) | 304.3 | |||||||||||||||||||||||||
Cost of product sales | 493.7 | 32.0 | — | 525.7 | |||||||||||||||||||||||||
Other operating (income) expense | (3.1) | 2.1 | — | (1.0) | |||||||||||||||||||||||||
Earnings of non-controlled entities | (1.7) | (60.2) | — | (61.9) | |||||||||||||||||||||||||
Operating margin | 481.4 | 211.8 | 3.0 | 696.2 | |||||||||||||||||||||||||
Depreciation, amortization and impairment expense | 78.8 | 34.7 | 3.0 | 116.5 | |||||||||||||||||||||||||
G&A expense | 86.0 | 33.7 | — | 119.7 | |||||||||||||||||||||||||
Operating profit | $ | 316.6 | $ | 143.4 | $ | — | $ | 460.0 | |||||||||||||||||||||
Interest expense (net of interest income and interest capitalized) | 114.1 | ||||||||||||||||||||||||||||
Gain on disposition of assets | (0.2) | ||||||||||||||||||||||||||||
Other (income) expense | 1.2 | ||||||||||||||||||||||||||||
Income from continuing operations before provision for income taxes | $ | 344.9 |
Six Months Ended June 30, 2023 | |||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Refined Products | Crude Oil | Intersegment Eliminations | Total | ||||||||||||||||||||||||||
Transportation and terminals revenue | $ | 721.9 | $ | 239.6 | $ | (4.2) | $ | 957.3 | |||||||||||||||||||||
Product sales revenue | 709.3 | 69.5 | — | 778.8 | |||||||||||||||||||||||||
Affiliate management fee revenue | 3.1 | 7.7 | — | 10.8 | |||||||||||||||||||||||||
Total revenue | 1,434.3 | 316.8 | (4.2) | 1,746.9 | |||||||||||||||||||||||||
Operating expense | 224.7 | 86.6 | (7.3) | 304.0 | |||||||||||||||||||||||||
Cost of product sales | 568.0 | 48.5 | — | 616.5 | |||||||||||||||||||||||||
Other operating (income) expense | (5.4) | 0.1 | — | (5.3) | |||||||||||||||||||||||||
Earnings of non-controlled entities | (13.8) | (28.3) | — | (42.1) | |||||||||||||||||||||||||
Operating margin | 660.8 | 209.9 | 3.1 | 873.8 | |||||||||||||||||||||||||
Depreciation, amortization and impairment expense | 75.0 | 34.3 | 3.1 | 112.4 | |||||||||||||||||||||||||
G&A expense | 96.6 | 38.3 | — | 134.9 | |||||||||||||||||||||||||
Operating profit | $ | 489.2 | $ | 137.3 | $ | — | $ | 626.5 | |||||||||||||||||||||
Interest expense (net of interest income and interest capitalized) | 110.9 | ||||||||||||||||||||||||||||
Gain on disposition of assets | (1.1) | ||||||||||||||||||||||||||||
Other (income) expense | 1.6 | ||||||||||||||||||||||||||||
Income from continuing operations before provision for income taxes | $ | 515.1 | |||||||||||||||||||||||||||
Three Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||
Refined Products | Crude Oil | Intersegment Eliminations | Total | |||||||||||||||||||||||||||||
Transportation | $ | 249.3 | $ | 62.1 | $ | — | $ | 311.4 | ||||||||||||||||||||||||
Terminalling | 29.1 | 12.8 | — | 41.9 | ||||||||||||||||||||||||||||
Storage | 38.0 | 24.6 | (1.3) | 61.3 | ||||||||||||||||||||||||||||
Ancillary services | 26.3 | 3.5 | — | 29.8 | ||||||||||||||||||||||||||||
Lease revenue | 6.5 | 18.4 | — | 24.9 | ||||||||||||||||||||||||||||
Transportation and terminals revenue | 349.2 | 121.4 | (1.3) | 469.3 | ||||||||||||||||||||||||||||
Product sales revenue | 291.0 | 22.7 | — | 313.7 | ||||||||||||||||||||||||||||
Affiliate management fee revenue | 1.7 | 3.9 | — | 5.6 | ||||||||||||||||||||||||||||
Total revenue | 641.9 | 148.0 | (1.3) | 788.6 | ||||||||||||||||||||||||||||
Revenue not under the guidance of ASC 606, Revenue from Contracts with Customers: | ||||||||||||||||||||||||||||||||
Lease revenue | (6.5) | (18.4) | — | (24.9) | ||||||||||||||||||||||||||||
(Gains) losses from futures contracts included in product sales revenue | 86.2 | 2.8 | — | 89.0 | ||||||||||||||||||||||||||||
Affiliate management fee revenue | (1.7) | (3.9) | — | (5.6) | ||||||||||||||||||||||||||||
Total revenue from contracts with customers under ASC 606 | $ | 719.9 | $ | 128.5 | $ | (1.3) | $ | 847.1 |
Three Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||
Refined Products | Crude Oil | Intersegment Eliminations | Total | |||||||||||||||||||||||||||||
Transportation | $ | 285.0 | $ | 60.3 | $ | — | $ | 345.3 | ||||||||||||||||||||||||
Terminalling | 31.6 | 14.2 | — | 45.8 | ||||||||||||||||||||||||||||
Storage | 37.2 | 22.4 | (2.0) | 57.6 | ||||||||||||||||||||||||||||
Ancillary services | 29.8 | 4.3 | — | 34.1 | ||||||||||||||||||||||||||||
Lease revenue | 6.3 | 14.1 | — | 20.4 | ||||||||||||||||||||||||||||
Transportation and terminals revenue | 389.9 | 115.3 | (2.0) | 503.2 | ||||||||||||||||||||||||||||
Product sales revenue | 322.8 | 45.9 | — | 368.7 | ||||||||||||||||||||||||||||
Affiliate management fee revenue | 1.5 | 3.8 | — | 5.3 | ||||||||||||||||||||||||||||
Total revenue | 714.2 | 165.0 | (2.0) | 877.2 | ||||||||||||||||||||||||||||
Revenue not under the guidance of ASC 606, Revenue from Contracts with Customers: | ||||||||||||||||||||||||||||||||
Lease revenue | (6.3) | (14.1) | — | (20.4) | ||||||||||||||||||||||||||||
(Gains) losses from futures contracts included in product sales revenue | 8.4 | 3.3 | — | 11.7 | ||||||||||||||||||||||||||||
Affiliate management fee revenue | (1.5) | (3.8) | — | (5.3) | ||||||||||||||||||||||||||||
Total revenue from contracts with customers under ASC 606 | $ | 714.8 | $ | 150.4 | $ | (2.0) | $ | 863.2 |
Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||
Refined Products | Crude Oil | Intersegment Eliminations | Total | |||||||||||||||||||||||||||||
Transportation | $ | 462.6 | $ | 117.1 | $ | — | $ | 579.7 | ||||||||||||||||||||||||
Terminalling | 52.4 | 19.1 | — | 71.5 | ||||||||||||||||||||||||||||
Storage | 77.5 | 51.6 | (2.6) | 126.5 | ||||||||||||||||||||||||||||
Ancillary services | 53.9 | 11.4 | — | 65.3 | ||||||||||||||||||||||||||||
Lease revenue | 12.3 | 36.9 | — | 49.2 | ||||||||||||||||||||||||||||
Transportation and terminals revenue | 658.7 | 236.1 | (2.6) | 892.2 | ||||||||||||||||||||||||||||
Product sales revenue | 532.6 | 27.2 | — | 559.8 | ||||||||||||||||||||||||||||
Affiliate management fee revenue | 3.5 | 7.8 | — | 11.3 | ||||||||||||||||||||||||||||
Total revenue | 1,194.8 | 271.1 | (2.6) | 1,463.3 | ||||||||||||||||||||||||||||
Revenue not under the guidance of ASC 606, Revenue from Contracts with Customers: | ||||||||||||||||||||||||||||||||
Lease revenue | (12.3) | (36.9) | — | (49.2) | ||||||||||||||||||||||||||||
(Gains) losses from futures contracts included in product sales revenue | 194.4 | 11.0 | — | 205.4 | ||||||||||||||||||||||||||||
Affiliate management fee revenue | (3.5) | (7.8) | — | (11.3) | ||||||||||||||||||||||||||||
Total revenue from contracts with customers under ASC 606 | $ | 1,373.4 | $ | 237.4 | $ | (2.6) | $ | 1,608.2 | ||||||||||||||||||||||||
Six Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||
Refined Products | Crude Oil | Intersegment Eliminations | Total | |||||||||||||||||||||||||||||
Transportation | $ | 513.4 | $ | 118.6 | $ | — | $ | 632.0 | ||||||||||||||||||||||||
Terminalling | 62.6 | 32.2 | — | 94.8 | ||||||||||||||||||||||||||||
Storage | 75.0 | 47.4 | (4.2) | 118.2 | ||||||||||||||||||||||||||||
Ancillary services | 58.4 | 7.6 | — | 66.0 | ||||||||||||||||||||||||||||
Lease revenue | 12.5 | 33.8 | — | 46.3 | ||||||||||||||||||||||||||||
Transportation and terminals revenue | 721.9 | 239.6 | (4.2) | 957.3 | ||||||||||||||||||||||||||||
Product sales revenue | 709.3 | 69.5 | — | 778.8 | ||||||||||||||||||||||||||||
Affiliate management fee revenue | 3.1 | 7.7 | — | 10.8 | ||||||||||||||||||||||||||||
Total revenue | 1,434.3 | 316.8 | (4.2) | 1,746.9 | ||||||||||||||||||||||||||||
Revenue not under the guidance of ASC 606, Revenue from Contracts with Customers: | ||||||||||||||||||||||||||||||||
Lease revenue | (12.5) | (33.8) | — | (46.3) | ||||||||||||||||||||||||||||
(Gains) losses from futures contracts included in product sales revenue | 13.6 | 4.5 | — | 18.1 | ||||||||||||||||||||||||||||
Affiliate management fee revenue | (3.1) | (7.7) | — | (10.8) | ||||||||||||||||||||||||||||
Total revenue from contracts with customers under ASC 606 | $ | 1,432.3 | $ | 279.8 | $ | (4.2) | $ | 1,707.9 | ||||||||||||||||||||||||
December 31, 2022 | June 30, 2023 | |||||||||||||
Accounts receivable from contracts with customers | $ | 217.0 | $ | 166.1 | ||||||||||
Contract assets | $ | 10.1 | $ | 10.5 | ||||||||||
Contract liabilities | $ | 112.7 | $ | 103.1 |
Refined Products | Crude Oil | Total | ||||||||||||||||||||||||
Balances at June 30, 2023 | $ | 1,984.8 | $ | 1,137.2 | $ | 3,122.0 | ||||||||||||||||||||
Remaining terms | 1 - 15 years | 1 - 9 years | ||||||||||||||||||||||||
Estimated revenues from UPOs to be recognized in the next 12 months | $ | 373.2 | $ | 278.4 | $ | 651.6 |
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 June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2022 | 2023 | 2022 | 2023 | |||||||||||||||||||||||
Transportation and terminals revenue: | ||||||||||||||||||||||||||
BridgeTex, pipeline capacity and storage | $ | 11.6 | $ | 11.0 | $ | 22.6 | $ | 22.6 | ||||||||||||||||||
Double Eagle, throughput revenue | $ | 0.3 | $ | 1.1 | $ | 1.0 | $ | 1.7 | ||||||||||||||||||
Saddlehorn, storage revenue | $ | 0.6 | $ | 0.6 | $ | 1.2 | $ | 1.2 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Seabrook, storage lease and ancillary services | $ | 4.5 | $ | 2.1 | $ | 8.7 | $ | 7.1 | ||||||||||||||||||
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 |
June 30, 2023 | ||||||||||||||||||||||||||
Trade Accounts Receivable | Other Accounts Receivable | Other Accounts Payable | ||||||||||||||||||||||||
BridgeTex | $ | 0.5 | $ | — | $ | — | ||||||||||||||||||||
Double Eagle | $ | 0.4 | $ | — | $ | — | ||||||||||||||||||||
HoustonLink | $ | — | $ | 0.2 | $ | — | ||||||||||||||||||||
MVP | $ | — | $ | 0.6 | $ | — | ||||||||||||||||||||
Saddlehorn | $ | — | $ | 0.2 | $ | — | ||||||||||||||||||||
Seabrook | $ | — | $ | — | $ | 0.9 | ||||||||||||||||||||
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 | 42.9 | |||||||
Amortization of excess investment and capitalized interest | (0.8) | |||||||
Earnings of non-controlled entities | 42.1 | |||||||
Less: | ||||||||
Distributions from operations of non-controlled entities | 76.8 | |||||||
Investments at June 30, 2023 | $ | 859.3 | ||||||
December 31, 2022 | June 30, 2023 | ||||||||||
Refined products | $ | 150.2 | $ | 117.2 | |||||||
Transmix | 91.1 | 99.3 | |||||||||
LPGs | 66.7 | 46.9 | |||||||||
Crude oil | 42.5 | 61.0 | |||||||||
Additives | 5.7 | 5.7 | |||||||||
Total inventories | $ | 356.2 | $ | 330.1 |
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 | June 30, 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) | (34.1) | |||||||||||||||
Net unamortized debt premium(1) | 6,530 | 4,241 | Net unamortized debt premium(1) | 18.3 | 18.2 | |||||||||||||||||
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 | $ | 4,984.1 | |||||||||||||
Three Months Ended June 30, 2022 | Three Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||
Third-Party Leases | Seabrook Lease | All Leases | Third-Party Leases | Seabrook Lease | All Leases | |||||||||||||||||||||||||||||||||
Total lease expense | $ | 6.3 | $ | 4.5 | $ | 10.8 | $ | 6.5 | $ | 2.1 | $ | 8.6 | ||||||||||||||||||||||||||
Six Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||
Third-Party Leases | Seabrook Lease | All Leases | Third-Party Leases | Seabrook Lease | All Leases | |||||||||||||||||||||||||||||||||
Total lease expense | $ | 12.5 | $ | 8.7 | $ | 21.2 | $ | 12.9 | $ | 7.1 | $ | 20.0 | ||||||||||||||||||||||||||
December 31, 2022 | June 30, 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 | $ | — | $ | 21.3 | ||||||||||||||||||||||||||
Long-term lease liability | $ | 82.1 | $ | 34.8 | $ | 116.9 | $ | 76.7 | $ | — | $ | 76.7 | ||||||||||||||||||||||||||
Right-of-use asset | $ | 104.9 | $ | 44.5 | $ | 149.4 | $ | 95.4 | $ | — | $ | 95.4 | ||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||
June 30, 2022 | June 30, 2023 | |||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||
Components of net periodic benefit costs: | ||||||||||||||||||||||||||
Service cost | $ | 6.6 | $ | — | $ | 5.0 | $ | — | ||||||||||||||||||
Interest cost | 2.6 | 0.1 | 3.2 | 0.2 | ||||||||||||||||||||||
Expected return on plan assets | (3.1) | — | (3.1) | — | ||||||||||||||||||||||
Amortization of prior service credit | (0.1) | — | (0.1) | — | ||||||||||||||||||||||
Amortization of actuarial loss | 1.1 | 0.1 | 0.4 | 0.1 | ||||||||||||||||||||||
Net periodic benefit cost | $ | 7.1 | $ | 0.2 | $ | 5.4 | $ | 0.3 |
Six Months Ended | Six Months Ended | |||||||||||||||||||||||||
June 30, 2022 | June 30, 2023 | |||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||
Components of net periodic benefit costs: | ||||||||||||||||||||||||||
Service cost | $ | 13.7 | $ | 0.1 | $ | 9.5 | $ | 0.1 | ||||||||||||||||||
Interest cost | 5.3 | 0.2 | 6.5 | 0.3 | ||||||||||||||||||||||
Expected return on plan assets | (6.5) | — | (6.2) | — | ||||||||||||||||||||||
Amortization of prior service credit | (0.1) | — | (0.1) | — | ||||||||||||||||||||||
Amortization of actuarial loss | 2.2 | 0.2 | 0.8 | 0.1 | ||||||||||||||||||||||
Net periodic benefit cost | $ | 14.6 | $ | 0.5 | $ | 10.5 | $ | 0.5 | ||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||
June 30, 2022 | June 30, 2023 | |||||||||||||||||||||||||
Gains (Losses) Included in AOCL | Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||
Beginning balance | $ | (91.7) | $ | (10.6) | $ | (41.8) | $ | (3.7) | ||||||||||||||||||
Net actuarial gain (loss) | (1.3) | 2.4 | (0.9) | (1.7) | ||||||||||||||||||||||
Recognition of prior service credit amortization in income | (0.1) | — | (0.1) | — | ||||||||||||||||||||||
Recognition of actuarial loss amortization in income | 1.1 | 0.1 | 0.4 | 0.1 | ||||||||||||||||||||||
Ending balance | $ | (92.0) | $ | (8.1) | $ | (42.4) | $ | (5.3) |
Six Months Ended | Six Months Ended | |||||||||||||||||||||||||
June 30, 2022 | June 30, 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) | ||||||||||||||||||
Net actuarial gain (loss) | (1.3) | 2.4 | (0.9) | (1.7) | ||||||||||||||||||||||
Recognition of prior service credit amortization in income | (0.1) | — | (0.1) | — | ||||||||||||||||||||||
Recognition of actuarial loss amortization in income | 2.2 | 0.2 | 0.8 | 0.1 | ||||||||||||||||||||||
Ending balance | $ | (92.0) | $ | (8.1) | $ | (42.4) | $ | (5.3) | ||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2022 | 2023 | 2022 | 2023 | |||||||||||||||||||||||
Performance-based awards | $ | 4.6 | $ | 5.2 | $ | 12.6 | $ | 9.9 | ||||||||||||||||||
Time-based awards | 3.9 | 2.6 | 10.3 | 4.3 | ||||||||||||||||||||||
Total | $ | 8.5 | $ | 7.8 | $ | 22.9 | $ | 14.2 | ||||||||||||||||||
Type of Contract/Accounting Methodology | Product Represented by the Contract and Associated Barrels | Maturity Dates | ||||||||||||
Commodity derivatives contract - Economic hedges | 4.7 million barrels of refined products and crude oil | Between July 2023 and April 2024 | ||||||||||||
Commodity derivatives contract - Economic hedges | 1.3 million barrels of gas liquids | Between July 2023 and April 2024 |
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 June 30, 2023 | $ | (16.1) | $ | 9.0 | $ | (7.1) | $ | 16.2 | $ | 9.1 | ||||||||||||||||||||||
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 | Six Months Ended | |||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||
Derivative Losses Included in AOCL | 2022 | 2023 | 2022 | 2023 | ||||||||||||||||||||||
Beginning balance | $ | (50.6) | $ | (47.1) | $ | (51.5) | $ | (48.0) | ||||||||||||||||||
Reclassification of net loss on cash flow hedges to income | 0.9 | 0.9 | 1.8 | 1.8 | ||||||||||||||||||||||
Ending balance | $ | (49.7) | $ | (46.2) | $ | (49.7) | $ | (46.2) |
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 June 30, 2022 and 2023 | Interest expense | $ | (0.9) | |||||||||||||||||
Six Months Ended June 30, 2022 and 2023 | Interest expense | $ | (1.8) | |||||||||||||||||
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 | Six Months Ended | |||||||||||||||||||||||||||||||
Location of Gain (Loss) Recognized on Derivatives | June 30, | June 30, | ||||||||||||||||||||||||||||||
Derivative Instrument | 2022 | 2023 | 2022 | 2023 | ||||||||||||||||||||||||||||
Commodity derivatives contracts | Product sales revenue | $ | (89.0) | $ | 11.7 | $ | (205.4) | $ | 18.1 | |||||||||||||||||||||||
Commodity derivatives contracts | Cost of product sales | (7.4) | (10.6) | 1.2 | (9.8) | |||||||||||||||||||||||||||
Basis derivative agreement | Other operating income (expense) | — | — | (2.1) | — | |||||||||||||||||||||||||||
Total | $ | (96.4) | $ | 1.1 | $ | (206.3) | $ | 8.3 |
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 | ||||||||||||||||||||
June 30, 2023 | ||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||
Derivative Instrument | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||||||||||||||
Commodity derivatives contracts | Commodity derivatives contracts, net | $ | 9.0 | Commodity derivatives contracts, net | $ | 16.1 | ||||||||||||||||||||
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) | $ | — |
Assets (Liabilities) | Fair Value Measurements as of June 30, 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 | $ | (7.1) | $ | (7.1) | $ | 3.1 | $ | (10.2) | $ | — | ||||||||||||||||||||||
Long-term receivables | $ | 8.1 | $ | 8.1 | $ | — | $ | — | $ | 8.1 | ||||||||||||||||||||||
Contractual obligations | $ | (9.4) | $ | (9.4) | $ | — | $ | — | $ | (9.4) | ||||||||||||||||||||||
Debt | $ | (4,984.1) | $ | (4,106.5) | $ | — | $ | (4,106.5) | $ | — |
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 | ) | $ | — |
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 June 30, 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 | ||||||||||||||||||||||||
Through 6/30/2022 | 2.0750 | 440.1 | ||||||||||||||||||||||||
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 | 1.0475 | 211.7 | ||||||||||||||||||||||||
Through 6/30/2023 | 2.0950 | 424.7 | ||||||||||||||||||||||||
8/14/2023(1) | 1.0475 | 211.7 | ||||||||||||||||||||||||
Total | $ | 3.1425 | $ | 636.4 | ||||||||||||||||||||||
Three Months Ended June 30, | Variance Favorable (Unfavorable) | ||||||||||||||||||||||
2022 | 2023 | $ Change | % Change | ||||||||||||||||||||
Financial Highlights ($ in millions, except operating statistics) | |||||||||||||||||||||||
Transportation and terminals revenue: | |||||||||||||||||||||||
Refined products | $ | 349.2 | $ | 389.9 | $ | 40.7 | 12 | ||||||||||||||||
Crude oil | 121.4 | 115.3 | (6.1) | (5) | |||||||||||||||||||
Intersegment eliminations | (1.3) | (2.0) | (0.7) | (54) | |||||||||||||||||||
Total transportation and terminals revenue | 469.3 | 503.2 | 33.9 | 7 | |||||||||||||||||||
Affiliate management fee revenue | 5.6 | 5.3 | (0.3) | (5) | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Refined products | 136.3 | 129.1 | 7.2 | 5 | |||||||||||||||||||
Crude oil | 46.6 | 44.5 | 2.1 | 5 | |||||||||||||||||||
Intersegment eliminations | (2.8) | (3.5) | 0.7 | 25 | |||||||||||||||||||
Total operating expenses | 180.1 | 170.1 | 10.0 | 6 | |||||||||||||||||||
Product margin: | |||||||||||||||||||||||
Product sales revenue | 313.7 | 368.7 | 55.0 | 18 | |||||||||||||||||||
Cost of product sales | 282.3 | 296.4 | (14.1) | (5) | |||||||||||||||||||
Product margin(1) | 31.4 | 72.3 | 40.9 | 130 | |||||||||||||||||||
Other operating income (expense) | 3.0 | (0.5) | (3.5) | n/a | |||||||||||||||||||
Earnings of non-controlled entities | 26.5 | 15.9 | (10.6) | (40) | |||||||||||||||||||
Less: | |||||||||||||||||||||||
Depreciation, amortization and impairment expense | 58.8 | 56.6 | 2.2 | 4 | |||||||||||||||||||
G&A expense | 56.9 | 74.5 | (17.6) | (31) | |||||||||||||||||||
Operating profit | 240.0 | 295.0 | 55.0 | 23 | |||||||||||||||||||
Interest expense (net of interest income and interest capitalized) | 57.3 | 54.8 | 2.5 | 4 | |||||||||||||||||||
Gain on disposition of assets | — | (1.1) | 1.1 | n/a | |||||||||||||||||||
Other (income) expense | 0.6 | 1.0 | (0.4) | (67) | |||||||||||||||||||
Income from continuing operations before provision for income taxes | 182.1 | 240.3 | 58.2 | 32 | |||||||||||||||||||
Provision for income taxes | 0.3 | 1.6 | (1.3) | (433) | |||||||||||||||||||
Income from continuing operations | 181.8 | 238.7 | 56.9 | 31 | |||||||||||||||||||
Income from discontinued operations (including gain on disposition of assets of $162.4 million in June 2022) | 172.1 | — | (172.1) | (100) | |||||||||||||||||||
Net income | $ | 353.9 | $ | 238.7 | $ | (115.2) | (33) | ||||||||||||||||
(1) Product margin is calculated as product sales revenue less cost of product sales, and is synonymous with the GAAP measure gross margin. | |||||||||||||||||||||||
Operating Statistics | |||||||||||||||||||||||
Refined products: | |||||||||||||||||||||||
Transportation revenue per barrel shipped | $ | 1.726 | $ | 2.028 | |||||||||||||||||||
Volume shipped (million barrels): | |||||||||||||||||||||||
Gasoline | 83.1 | 78.2 | |||||||||||||||||||||
Distillates | 51.7 | 55.1 | |||||||||||||||||||||
Aviation fuel | 8.1 | 8.1 | |||||||||||||||||||||
Total volume shipped | 142.9 | 141.4 | |||||||||||||||||||||
Crude oil: | |||||||||||||||||||||||
Magellan 100%-owned assets: | |||||||||||||||||||||||
Transportation revenue per barrel shipped(2) | $ | 0.658 | $ | 0.605 | |||||||||||||||||||
Volume shipped (million barrels)(2) | 61.5 | 70.0 | |||||||||||||||||||||
Terminal average utilization (million barrels per month) | 23.6 | 22.9 | |||||||||||||||||||||
Select joint venture pipelines: | |||||||||||||||||||||||
BridgeTex - volume shipped (million barrels)(3) | 19.6 | 8.0 | |||||||||||||||||||||
Saddlehorn - volume shipped (million barrels)(3) | 20.0 | 24.2 |
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 | |||||||||||
Six Months Ended June 30, | Variance Favorable (Unfavorable) | ||||||||||||||||||||||
2022 | 2023 | $ Change | % Change | ||||||||||||||||||||
Financial Highlights ($ in millions, except operating statistics) | |||||||||||||||||||||||
Transportation and terminals revenue: | |||||||||||||||||||||||
Refined products | $ | 658.7 | $ | 721.9 | $ | 63.2 | 10 | ||||||||||||||||
Crude oil | 236.1 | 239.6 | 3.5 | 1 | |||||||||||||||||||
Intersegment eliminations | (2.6) | (4.2) | (1.6) | (62) | |||||||||||||||||||
Total transportation and terminals revenue | 892.2 | 957.3 | 65.1 | 7 | |||||||||||||||||||
Affiliate management fee revenue | 11.3 | 10.8 | (0.5) | (4) | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Refined products | 224.5 | 224.7 | (0.2) | — | |||||||||||||||||||
Crude oil | 85.4 | 86.6 | (1.2) | (1) | |||||||||||||||||||
Intersegment eliminations | (5.6) | (7.3) | 1.7 | 30 | |||||||||||||||||||
Total operating expenses | 304.3 | 304.0 | 0.3 | — | |||||||||||||||||||
Product margin: | |||||||||||||||||||||||
Product sales revenue | 559.8 | 778.8 | 219.0 | 39 | |||||||||||||||||||
Cost of product sales | 525.7 | 616.5 | (90.8) | (17) | |||||||||||||||||||
Product margin (1) | 34.1 | 162.3 | 128.2 | 376 | |||||||||||||||||||
Other operating income (expense) | 1.0 | 5.3 | 4.3 | 430 | |||||||||||||||||||
Earnings of non-controlled entities | 61.9 | 42.1 | (19.8) | (32) | |||||||||||||||||||
Less: | |||||||||||||||||||||||
Depreciation, amortization and impairment expense | 116.5 | 112.4 | 4.1 | 4 | |||||||||||||||||||
G&A expense | 119.7 | 134.9 | (15.2) | (13) | |||||||||||||||||||
Operating profit | 460.0 | 626.5 | 166.5 | 36 | |||||||||||||||||||
Interest expense (net of interest income and interest capitalized) | 114.1 | 110.9 | 3.2 | 3 | |||||||||||||||||||
Gain on disposition of assets | (0.2) | (1.1) | 0.9 | 450 | |||||||||||||||||||
Other (income) expense | 1.2 | 1.6 | (0.4) | (33) | |||||||||||||||||||
Income from continuing operations before provision for income taxes | 344.9 | 515.1 | 170.2 | 49 | |||||||||||||||||||
Provision for income taxes | 1.1 | 2.5 | (1.4) | (127) | |||||||||||||||||||
Income from continuing operations | 343.8 | 512.6 | 168.8 | 49 | |||||||||||||||||||
Income from discontinued operations (including gain on disposition of assets of $162.4 million in June 2022) | 175.6 | — | (175.6) | (100) | |||||||||||||||||||
Net income | $ | 519.4 | $ | 512.6 | $ | (6.8) | (1) | ||||||||||||||||
(1) Product margin is calculated as product sales revenue less cost of product sales, and is synonymous with the GAAP measure gross margin. | |||||||||||||||||||||||
Operating Statistics: | |||||||||||||||||||||||
Refined products: | |||||||||||||||||||||||
Transportation revenue per barrel shipped | $ | 1.683 | $ | 1.951 | |||||||||||||||||||
Volume shipped (million barrels): | |||||||||||||||||||||||
Gasoline | 158.7 | 146.7 | |||||||||||||||||||||
Distillates | 99.3 | 102.0 | |||||||||||||||||||||
Aviation fuel | 15.5 | 16.9 | |||||||||||||||||||||
LPGs | 0.6 | — | |||||||||||||||||||||
Total volume shipped | 274.1 | 265.6 | |||||||||||||||||||||
Crude oil: | |||||||||||||||||||||||
Magellan 100%-owned assets: | |||||||||||||||||||||||
Transportation revenue per barrel shipped(2) | $ | 0.733 | $ | 0.604 | |||||||||||||||||||
Volume shipped (million barrels)(2) | 103.4 | 134.1 | |||||||||||||||||||||
Terminal average utilization (million barrels per month) | 24.4 | 23.2 | |||||||||||||||||||||
Select joint venture pipelines: | |||||||||||||||||||||||
BridgeTex - volume shipped (million barrels)(3) | 45.1 | 20.8 | |||||||||||||||||||||
Saddlehorn - volume shipped (million barrels)(3) | 40.0 | 46.0 |
Six Months Ended June 30, | ||||||||||||||||||||
2022 | 2023 | |||||||||||||||||||
Net income | $ | 519.4 | $ | 512.6 | ||||||||||||||||
Interest expense, net | 114.1 | 110.9 | ||||||||||||||||||
Depreciation, amortization and impairment(1) | 116.5 | 113.6 | ||||||||||||||||||
Equity-based incentive compensation(2) | 14.0 | 4.3 | ||||||||||||||||||
Gain on disposition of assets(3) | (156.3) | (1.1) | ||||||||||||||||||
Commodity-related adjustments: | ||||||||||||||||||||
Derivative (gains) losses recognized in the period associated with future transactions(4) | 40.9 | 4.0 | ||||||||||||||||||
Derivative gains (losses) recognized in previous periods associated with transactions completed in the period(4) | (18.7) | (12.0) | ||||||||||||||||||
Inventory valuation adjustments(5) | (2.0) | 0.9 | ||||||||||||||||||
Total commodity-related adjustments | 20.2 | (7.1) | ||||||||||||||||||
Distributions from operations of non-controlled entities in excess of earnings | 17.0 | 34.7 | ||||||||||||||||||
Adjusted EBITDA | 644.9 | 767.9 | ||||||||||||||||||
Interest expense, net, excluding debt issuance cost amortization | (112.6) | (109.1) | ||||||||||||||||||
Maintenance capital(6) | (38.9) | (34.3) | ||||||||||||||||||
Distributable cash flow | $ | 493.4 | $ | 624.5 | ||||||||||||||||
Expansion capital(7) | (45.8) | (74.0) | ||||||||||||||||||
Proceeds from disposition of assets(3) | 440.8 | 1.1 | ||||||||||||||||||
Free cash flow | $ | 888.4 | $ | 551.6 | ||||||||||||||||
Distributions paid(8) | (440.1) | (424.7) | ||||||||||||||||||
Free cash flow after distributions | $ | 448.3 | $ | 126.9 | ||||||||||||||||
Six Months Ended June 30, | ||||||||||||||
2022 | 2023 | |||||||||||||
Net cash provided by operating activities | $ | 397.3 | $ | 756.0 | ||||||||||
Changes in operating assets and liabilities | 128.5 | (81.2) | ||||||||||||
Net cash used by investing activities | 361.6 | (94.2) | ||||||||||||
Payments associated with settlement of equity-based incentive compensation | (8.9) | (9.9) | ||||||||||||
Settlement cost, amortization of prior service credit and actuarial loss | (2.3) | (0.8) | ||||||||||||
Changes in accrued capital items | 0.8 | (13.0) | ||||||||||||
Commodity-related adjustments(1) | 20.2 | (7.1) | ||||||||||||
Other | (8.8) | 1.8 | ||||||||||||
Free cash flow | $ | 888.4 | $ | 551.6 | ||||||||||
Distributions paid | (440.1) | (424.7) | ||||||||||||
Free cash flow after distributions | $ | 448.3 | $ | 126.9 | ||||||||||
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 | $ | 379.3 | $ | 155.7 | $ | 135.7 | $ | 87.9 | |||||||||||||||
Forward purchase contracts – barrels | 9.7 | 3.1 | 3.9 | 2.7 | |||||||||||||||||||
Forward sales contracts – notional value | $ | 105.2 | $ | 105.2 | $ | — | $ | — | |||||||||||||||
Forward sales contracts – barrels | 1.4 | 1.4 | — | — |
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)(1) | ||||||||||||||||||||||
January 1-31, 2023 | — | $ | — | — | $ | 227.7 | ||||||||||||||||||||
February 1-28, 2023 | — | $ | — | — | $ | 227.7 | ||||||||||||||||||||
March 1-31, 2023 | 1,198,222 | $ | 53.65 | 1,198,222 | $ | 163.4 | ||||||||||||||||||||
First Quarter 2023 | 1,198,222 | $ | 53.65 | 1,198,222 | ||||||||||||||||||||||
April 1-30, 2023 | — | $ | — | — | $ | 163.4 | ||||||||||||||||||||
May 1-31, 2023 | — | $ | — | — | $ | 163.4 | ||||||||||||||||||||
June 1-30, 2023 | — | $ | — | — | $ | 163.4 | ||||||||||||||||||||
Second Quarter 2023 | — | $ | — | — | ||||||||||||||||||||||
Year-to-Date 2023 | 1,198,222 | $ | 53.65 | 1,198,222 | ||||||||||||||||||||||
Exhibit Number | Description | ||||||||||||||||||||||||||||||||||
Exhibit | — | Agreement and Plan of Merger, dated as of May 14, 2023, by and among ONEOK, Inc., Otter Merger Sub, LLC and Magellan Midstream Partners, L.P. (filed as Exhibit 2.1 to Form 8-K filed May 15, 2023) | |||||||||||||||||||||||||||||||||
Exhibit | — | ||||||||||||||||||||||||||||||||||
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 | |||||||||