Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 14, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 000-50056 | ||
Entity Registrant Name | MARTIN MIDSTREAM PARTNERS L.P. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 05-0527861 | ||
Entity Address, Address Line One | 4200 Stone Road | ||
Entity Address, City or Town | Kilgore | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75662 | ||
City Area Code | 903 | ||
Local Phone Number | 983-6200 | ||
Title of 12(b) Security | Common Units representing limited partnership interests | ||
Trading Symbol | MMLP | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 233,826,839 | ||
Entity Common Stock, Shares Outstanding (in shares) | 38,944,389 | ||
Documents Incorporated by Reference | None. | ||
Entity Central Index Key | 0001176334 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | [1] |
Assets | |||
Cash | $ 2,856 | $ 300 | |
Trade and accrued accounts receivable, less allowance for doubtful accounts of $532 and $576, respectively | 87,254 | 83,488 | |
Product exchange receivables | 0 | 166 | |
Inventories (Note 7) | 62,540 | 84,265 | |
Due from affiliates | 17,829 | 18,845 | |
Fair value of derivatives (Note 13) | 0 | 4 | |
Other current assets | 5,833 | 5,889 | |
Assets held for sale (Note 5) | 5,052 | 5,652 | |
Current assets - Natural Gas Storage Assets (Note 5) | 0 | 9,428 | |
Total current assets | 181,364 | 208,037 | |
Property, plant and equipment, at cost (Note 8) | 884,728 | 886,435 | |
Accumulated depreciation | (467,531) | (438,602) | |
Property, plant and equipment, net | 417,197 | 447,833 | |
Goodwill (Note 9) | 17,705 | 17,785 | |
Right-of-use assets (Note 10) | 23,901 | 0 | |
Deferred income taxes, net (Note 19) | 23,422 | 0 | |
Intangibles and other assets, net (Note 15) | 3,567 | 4,584 | |
Non current assets - Natural Gas Storage Assets (Note 5) | 0 | 395,389 | |
Total assets | 667,156 | 1,073,628 | |
Liabilities and Partners’ Capital (Deficit) | |||
Current portion of finance lease obligations (Note 10) | 6,758 | 5,409 | |
Trade and other accounts payable | 64,802 | 64,041 | |
Product exchange payables | 4,322 | 12,103 | |
Due to affiliates | 1,470 | 2,133 | |
Income taxes payable (Note 19) | 472 | 445 | |
Fair value of derivatives (Note 13) | 667 | 0 | |
Other accrued liabilities (Note 15) | 28,789 | 24,380 | |
Current liabilities - Natural Gas Storage Assets (Note 5) | 0 | 3,240 | |
Total current liabilities | 107,280 | 111,751 | |
Long-term debt, net (Note 16) | 569,788 | 656,459 | |
Finance lease obligations (Note 10) | 717 | 6,272 | |
Operating lease liabilities (Note 10) | 16,656 | 0 | |
Other long-term obligations | 8,911 | 10,045 | |
Non current liabilities - Natural Gas Storage Assets | 0 | 669 | |
Total liabilities | 703,352 | 785,196 | |
Commitments and contingencies (Note 22) | |||
Partners’ capital (deficit) (Note 17) | (36,196) | 288,432 | [2] |
Total partners’ capital (deficit) | (36,196) | 288,432 | |
Total liabilities and partners' capital | $ 667,156 | $ 1,073,628 | |
[1] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. | ||
[2] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Doubtful accounts for accounts and other receivables | $ 532 | $ 576 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | [1] | Dec. 31, 2017 | [1] | ||
Revenues: | ||||||
Total revenues | $ 847,118 | $ 1,020,104 | $ 973,386 | |||
Cost of products sold: (excluding depreciation and amortization) | ||||||
Total cost of products sold (excluding depreciation and amortization) | 492,795 | 659,306 | 594,675 | |||
Expenses: | ||||||
Operating expenses | [2] | 209,313 | 216,182 | 228,778 | ||
Selling, general and administrative | [2] | 41,433 | 39,116 | 39,080 | ||
Impairment of long-lived assets | 0 | 0 | [3] | 2,225 | [3] | |
Depreciation and amortization | 60,060 | 61,484 | [3] | 65,108 | [3] | |
Total costs and expenses | 803,601 | 976,088 | 929,866 | |||
Other operating income, net | 14,587 | 1,041 | 2,096 | |||
Operating income | 58,104 | 45,057 | 45,616 | |||
Other income (expense): | ||||||
Interest expense, net | (51,690) | (52,349) | (47,770) | |||
Other, net | 6 | 38 | 1,129 | |||
Total other income (expense) | (51,684) | (52,311) | (46,641) | |||
Net income (loss) before taxes | 6,420 | (7,254) | (1,025) | |||
Income tax expense | (1,900) | (577) | (158) | |||
Income (loss) from continuing operations | 4,520 | (7,831) | [3] | (1,183) | [3] | |
Income (loss) from discontinued operations, net of income taxes | (179,466) | 63,486 | [3] | 21,099 | [3] | |
Net income (loss) | (174,946) | 55,655 | [3] | 19,916 | [3] | |
Less general partner's interest in net (income) loss | 3,499 | (882) | [4] | (343) | [4] | |
Less pre-acquisition income allocated to the general partner | 0 | (11,550) | (2,781) | |||
Less income allocable to unvested restricted units | (41) | (28) | (42) | |||
Limited partners' interest in net income (loss) | (171,488) | 43,195 | [4] | 16,750 | [4] | |
Terminalling and storage | ||||||
Revenues: | ||||||
Total revenues | [2] | 87,397 | 96,204 | 99,643 | ||
Transportation | ||||||
Revenues: | ||||||
Total revenues | [2] | 159,622 | 150,121 | 135,350 | ||
Sulfur services | ||||||
Revenues: | ||||||
Total revenues | 11,434 | 11,148 | 10,952 | |||
Product sales | ||||||
Revenues: | ||||||
Total revenues | [2] | 588,665 | 762,631 | 727,441 | ||
Natural gas liquids | ||||||
Revenues: | ||||||
Total revenues | [2] | 366,502 | 496,007 | 473,317 | ||
Cost of products sold: (excluding depreciation and amortization) | ||||||
Total cost of products sold (excluding depreciation and amortization) | [2] | 325,376 | 449,103 | 406,388 | ||
Sulfur services | ||||||
Revenues: | ||||||
Total revenues | [2] | 99,906 | 121,388 | 123,732 | ||
Cost of products sold: (excluding depreciation and amortization) | ||||||
Total cost of products sold (excluding depreciation and amortization) | [2] | 65,893 | 83,641 | 76,119 | ||
Terminalling and storage | ||||||
Revenues: | ||||||
Total revenues | [2] | 122,257 | 145,236 | 130,392 | ||
Cost of products sold: (excluding depreciation and amortization) | ||||||
Total cost of products sold (excluding depreciation and amortization) | [2] | $ 101,526 | $ 126,562 | $ 112,168 | ||
[1] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. | |||||
[2] | *Related Party Transactions Included Above Year Ended December 31, 2019 2018 1 2017 1 Revenues: Terminalling and storage $ 71,733 $ 79,137 $ 82,142 Transportation 24,243 27,588 29,807 Natural gas liquids — — 122 Product sales 931 1,297 3,497 Costs and expenses: Cost of products sold: (excluding depreciation and amortization) Natural gas liquids — — 4,354 Sulfur services 10,765 10,641 9,345 Terminalling and storage 23,859 24,613 16,672 Expenses: Operating expenses 88,194 90,878 95,546 Selling, general and administrative 32,622 26,441 26,393 | |||||
[3] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. | |||||
[4] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS - (Allocation of Net Income) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | [1] | Dec. 31, 2017 | [1] | |
Limited partner interest: | |||||
Continuing operations | $ 4,430 | $ (18,982) | $ (3,875) | ||
Discontinued operations | (175,918) | 62,177 | 20,625 | ||
Limited partner's interest in net income | (171,488) | 43,195 | [2] | 16,750 | [2] |
General partner interest: | |||||
Continuing operations | 91 | (387) | (79) | ||
Discontinued operations | (3,590) | 1,269 | 422 | ||
Net income allocated to general partners | $ (3,499) | $ 882 | [2] | $ 343 | [2] |
Basic: | |||||
Continuing operations (in dollars per share) | $ 0.11 | $ (0.49) | $ (0.10) | ||
Discontinued operations (in dollars per share) | (4.55) | 1.60 | 0.54 | ||
Net Income, Basic (in dollars per share) | $ (4.44) | $ 1.11 | $ 0.44 | ||
Weighted average limited partner units - basic (in shares) | 38,658,881 | 38,907,000 | 38,101,583 | ||
Diluted: | |||||
Continuing operations (in dollars per share) | $ 0.11 | $ (0.49) | $ (0.10) | ||
Discontinued operations (in dollars per share) | (4.55) | 1.60 | 0.54 | ||
Net Income, Diluted (in dollars per share) | $ (4.44) | $ 1.11 | $ 0.44 | ||
Weighted average limited partner units - diluted (in shares) | 38,658,881 | 38,922,678 | 38,164,901 | ||
[1] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. | ||||
[2] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. |
CONSOLIDATED STATEMENTS OF OP_3
CONSOLIDATED STATEMENTS OF OPERATIONS - (Related Party Transactions) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Revenues: | ||||||
Revenues | $ 847,118 | $ 1,020,104 | [1] | $ 973,386 | [1] | |
Cost of products sold: (excluding depreciation and amortization) | ||||||
Cost of products sold | 492,795 | 659,306 | [1] | 594,675 | [1] | |
Expenses: | ||||||
Operating expenses | 88,194 | 90,878 | [2] | 95,546 | [2] | |
Selling, general and administrative | 32,622 | 26,441 | [2] | 26,393 | [2] | |
Terminalling and storage | ||||||
Revenues: | ||||||
Revenues | [3] | 87,397 | 96,204 | [1] | 99,643 | [1] |
Transportation revenue | ||||||
Revenues: | ||||||
Revenues | [3] | 159,622 | 150,121 | [1] | 135,350 | [1] |
Product sales | ||||||
Revenues: | ||||||
Revenues | [3] | 588,665 | 762,631 | [1] | 727,441 | [1] |
Natural gas liquids | ||||||
Revenues: | ||||||
Revenues | [3] | 366,502 | 496,007 | [1] | 473,317 | [1] |
Cost of products sold: (excluding depreciation and amortization) | ||||||
Cost of products sold | [3] | 325,376 | 449,103 | [1] | 406,388 | [1] |
Sulfur services | ||||||
Revenues: | ||||||
Revenues | [3] | 99,906 | 121,388 | [1] | 123,732 | [1] |
Cost of products sold: (excluding depreciation and amortization) | ||||||
Cost of products sold | [3] | 65,893 | 83,641 | [1] | 76,119 | [1] |
Terminalling and storage | ||||||
Revenues: | ||||||
Revenues | [3] | 122,257 | 145,236 | [1] | 130,392 | [1] |
Cost of products sold: (excluding depreciation and amortization) | ||||||
Cost of products sold | [3] | 101,526 | 126,562 | [1] | 112,168 | [1] |
Related Party | ||||||
Expenses: | ||||||
Operating expenses | 88,194 | 90,878 | 95,546 | |||
Related Party | Terminalling and storage | ||||||
Revenues: | ||||||
Revenues | 71,733 | 79,137 | [2] | 82,142 | [2] | |
Related Party | Transportation revenue | ||||||
Revenues: | ||||||
Revenues | 24,243 | 27,588 | [2] | 29,807 | [2] | |
Cost of products sold: (excluding depreciation and amortization) | ||||||
Cost of products sold | 61,376 | 62,965 | 63,487 | |||
Related Party | Natural gas liquids | ||||||
Revenues: | ||||||
Revenues | 0 | 0 | [2] | 122 | [2] | |
Related Party | Product sales | ||||||
Revenues: | ||||||
Revenues | 931 | 1,297 | [2] | 3,497 | [2] | |
Related Party | Natural gas liquids | ||||||
Cost of products sold: (excluding depreciation and amortization) | ||||||
Cost of products sold | 0 | 0 | [2] | 4,354 | [2] | |
Related Party | Sulfur services | ||||||
Cost of products sold: (excluding depreciation and amortization) | ||||||
Cost of products sold | 10,765 | 10,641 | [2] | 9,345 | [2] | |
Related Party | Terminalling and storage | ||||||
Cost of products sold: (excluding depreciation and amortization) | ||||||
Cost of products sold | $ 23,859 | $ 24,613 | [2] | $ 16,672 | [2] | |
[1] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. | |||||
[2] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. | |||||
[3] | *Related Party Transactions Included Above Year Ended December 31, 2019 2018 1 2017 1 Revenues: Terminalling and storage $ 71,733 $ 79,137 $ 82,142 Transportation 24,243 27,588 29,807 Natural gas liquids — — 122 Product sales 931 1,297 3,497 Costs and expenses: Cost of products sold: (excluding depreciation and amortization) Natural gas liquids — — 4,354 Sulfur services 10,765 10,641 9,345 Terminalling and storage 23,859 24,613 16,672 Expenses: Operating expenses 88,194 90,878 95,546 Selling, general and administrative 32,622 26,441 26,393 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||||||
Beginning balance | [2] | $ 288,432 | [1] | $ 322,481 | $ 288,432 | [1] | $ 322,481 | $ 331,060 | |||||
Net income (loss) | $ 6,642 | $ (3,656) | $ 2,582 | $ 15,036 | (174,946) | 55,655 | [3],[4] | 19,916 | [3],[4] | ||||
Issuance of common units, net | (289) | (118) | 51,056 | ||||||||||
Issuance of restricted units | 0 | ||||||||||||
Forfeiture of restricted units | 0 | 0 | 0 | ||||||||||
General partner contribution | 1,098 | ||||||||||||
Cash distributions | (49,093) | (78,441) | (76,938) | ||||||||||
Deemed contribution from Martin Resource Management Corporation | (12,070) | (2,405) | |||||||||||
Reimbursement of excess purchase price over carrying value of acquired assets | 1,125 | ||||||||||||
Excess carrying value of the assets over the purchase price paid by Martin Resource Management | (7,887) | ||||||||||||
Excess purchase price over carrying value of acquired assets | (102,393) | (26) | |||||||||||
Deferred taxes on acquired assets and liabilities | 24,781 | ||||||||||||
Unit-based compensation | 1,424 | 1,224 | 650 | ||||||||||
Purchase of treasury units | (392) | (273) | (4) | ||||||||||
Contribution to parent | (23,720) | ||||||||||||
Ending balance | $ (36,196) | $ 288,432 | [1],[2] | $ (36,196) | $ 288,432 | [1],[2] | $ 322,481 | [2] | |||||
Common | Common | |||||||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||||||
Beginning balance (in shares) | [2] | 39,032,237 | 38,444,612 | 39,032,237 | 38,444,612 | 35,452,062 | |||||||
Beginning balance | [2] | $ 258,085 | $ 290,927 | $ 258,085 | $ 290,927 | $ 304,594 | |||||||
Net income (loss) | (171,447) | 43,223 | $ 16,792 | ||||||||||
Issuance of common units, net (in shares) | 2,990,000 | ||||||||||||
Issuance of common units, net | $ (289) | $ (118) | $ 51,056 | ||||||||||
Issuance of restricted units (in shares) | 12,000 | ||||||||||||
Forfeiture of restricted units (in shares) | (154,288) | (27,000) | (9,250) | ||||||||||
Cash distributions | $ (48,111) | $ (76,872) | $ (75,399) | ||||||||||
Reimbursement of excess purchase price over carrying value of acquired assets | 1,125 | ||||||||||||
Excess carrying value of the assets over the purchase price paid by Martin Resource Management | (7,887) | ||||||||||||
Excess purchase price over carrying value of acquired assets | (102,393) | (26) | |||||||||||
Deferred taxes on acquired assets and liabilities | 24,781 | ||||||||||||
Unit-based compensation | $ 1,424 | $ 1,224 | $ 650 | ||||||||||
Purchase of treasury units (in shares) | (31,504) | (18,800) | (200) | ||||||||||
Purchase of treasury units | $ (392) | $ (273) | $ (4) | ||||||||||
Ending balance (in shares) | 38,863,389 | 39,032,237 | [2] | 38,863,389 | 39,032,237 | [2] | 38,444,612 | [2] | |||||
Ending balance | $ (38,342) | $ 258,085 | [2] | $ (38,342) | $ 258,085 | [2] | $ 290,927 | [2] | |||||
General Partner | |||||||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||||||
Beginning balance | [2] | 6,627 | 7,314 | 6,627 | 7,314 | 7,412 | |||||||
Net income (loss) | (3,499) | 882 | 343 | ||||||||||
General partner contribution | 1,098 | ||||||||||||
Cash distributions | (982) | (1,569) | (1,539) | ||||||||||
Ending balance | 2,146 | 6,627 | [2] | 2,146 | 6,627 | [2] | 7,314 | [2] | |||||
Time Based Restricted Units | |||||||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||||||
Issuance of restricted units | $ 0 | $ 0 | |||||||||||
Time Based Restricted Units | Common | Common | |||||||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||||||
Issuance of restricted units (in shares) | 16,944 | 315,500 | |||||||||||
Performance Based Restricted Units | |||||||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||||||
Issuance of restricted units | $ 0 | ||||||||||||
Performance Based Restricted Units | Common | Common | |||||||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||||||
Issuance of restricted units (in shares) | 317,925 | ||||||||||||
Parent Net Investment | |||||||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||||||
Beginning balance | [2] | $ 23,720 | $ 24,240 | $ 23,720 | $ 24,240 | 19,054 | |||||||
Net income (loss) | 11,550 | 2,781 | |||||||||||
Deemed contribution from Martin Resource Management Corporation | (12,070) | ||||||||||||
Contribution to parent | (23,720) | ||||||||||||
Ending balance | $ 0 | $ 23,720 | [2] | $ 0 | $ 23,720 | [2] | $ 24,240 | [2] | |||||
[1] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. | ||||||||||||
[2] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. | ||||||||||||
[3] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. | ||||||||||||
[4] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Cash flows from operating activities: | ||||||
Net income (loss) | $ (174,946) | $ 55,655 | [1],[2] | $ 19,916 | [1],[2] | |
Less: (Income) loss from discontinued operations | 179,466 | (63,486) | [1],[2] | (21,099) | [1],[2] | |
Net income (loss) from continuing operations | 4,520 | (7,831) | [1],[2] | (1,183) | [1],[2] | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||
Depreciation and amortization | 60,060 | 61,484 | [1],[2] | 65,108 | [1],[2] | |
Amortization and write-off of deferred debt issue costs | 4,041 | 3,445 | [1] | 2,897 | [1] | |
Amortization of premium on notes payable | (306) | (306) | [1] | (306) | [1] | |
Deferred income tax expense (benefit) | 1,360 | 208 | [1] | (156) | [1] | |
Gain on disposition or sale of property, plant, and equipment | (13,332) | (1,041) | [1] | (2,090) | [1] | |
Impairment of long-lived assets | 0 | 0 | [1],[2] | 2,225 | [1],[2] | |
Derivative (income) loss | 5,137 | (14,024) | [1] | 1,304 | [1] | |
Net cash (paid) received for commodity derivatives | (4,466) | 13,948 | [1] | (5,136) | [1] | |
Unit-based compensation | 1,424 | 1,224 | [1] | 650 | [1] | |
Change in current assets and liabilities, excluding effects of acquisitions and dispositions: | ||||||
Accounts and other receivables | 62 | 29,085 | [1] | (29,384) | [1] | |
Product exchange receivables | 166 | (137) | [1] | 178 | [1] | |
Inventories | 21,493 | 13,370 | [1] | (14,927) | [1] | |
Due from affiliates | 1,822 | 5,961 | [1] | (12,096) | [1] | |
Other current assets | (254) | 1,485 | [1] | (1,743) | [1] | |
Trade and other accounts payable | (898) | (27,321) | [1] | 19,263 | [1] | |
Product exchange payables | (7,781) | 555 | [1] | 4,829 | [1] | |
Due to affiliates | (1,469) | 99 | [1] | (5,564) | [1] | |
Income taxes payable | 27 | (65) | [1] | (360) | [1] | |
Other accrued liabilities | (3,017) | (6,636) | [1] | (223) | [1] | |
Change in other non-current assets and liabilities | (543) | 1,206 | [1] | 2,780 | [1] | |
Net cash provided by continuing operating activities | 68,046 | 74,709 | [1] | 26,066 | [1] | |
Net cash provided by discontinued operating activities | 7,769 | 30,321 | [1] | 43,018 | [1] | |
Net cash provided by operating activities | 75,815 | 105,030 | [1] | 69,084 | [1] | |
Cash flows from investing activities: | ||||||
Payments for property, plant, and equipment | (30,621) | (35,255) | [1] | (41,932) | [1] | |
Acquisitions, net of cash acquired | (23,720) | 0 | [1] | (19,533) | [1] | |
Payments for plant turnaround costs | (5,677) | (1,893) | [1] | (1,583) | [1] | |
Proceeds from sale of property, plant, and equipment | 20,660 | 11,483 | [1] | 13,676 | [1] | |
Proceeds from involuntary conversion of property, plant and equipment | 5,031 | 0 | [1] | 0 | [1] | |
Proceeds from repayment of Note receivable - affiliate | 0 | 0 | [1] | 15,000 | [1] | |
Net cash used in continuing investing activities | (34,327) | (25,665) | [1] | (34,372) | [1] | |
Net cash provided by (used in) discontinued investing activities | 209,155 | 173,287 | [1] | (7,263) | [1] | |
Net cash provided by (used in) investing activities | 174,828 | 147,622 | [1] | (41,635) | [1] | |
Cash flows from financing activities: | ||||||
Payments of long-term debt | (729,514) | (559,201) | [1] | (339,224) | [1] | |
Proceeds from long-term debt | 638,000 | 399,000 | [1] | 341,000 | [1] | |
Net proceeds from issuance of common units | (289) | (118) | [1] | 51,056 | [1] | |
General partner contributions | 0 | 0 | [1] | 1,098 | [1] | |
Deemed contribution from (distribution to) Martin Resource Management | 0 | (12,070) | [1] | 2,405 | [1] | |
Excess purchase price over carrying value of acquired assets | (102,393) | (26) | [1] | (7,887) | [1] | |
Reimbursement of excess purchase price over carrying value of acquired assets | 0 | 0 | [1] | 1,125 | [1] | |
Purchase of treasury units | (392) | (273) | [1] | (4) | [1] | |
Payments of debt issuance costs | (4,406) | (1,312) | [1] | (66) | [1] | |
Cash distributions paid | (49,093) | (78,441) | [1] | (76,938) | [1] | |
Net cash used in financing activities | (248,087) | (252,441) | [1] | (27,435) | [1] | |
Net increase in cash | 2,556 | 211 | [1] | 14 | [1] | |
Cash at beginning of year | [1] | 300 | 89 | 75 | ||
Cash at end of year | $ 2,856 | $ 300 | [1] | $ 89 | [1] | |
[1] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. | |||||
[2] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | ORGANIZATION AND DESCRIPTION OF BUSINESS Martin Midstream Partners L.P. (the "Partnership") is a publicly traded limited partnership with a diverse set of operations focused primarily in the United States ("U.S.") Gulf Coast region. Its four primary business lines include: terminalling, processing, storage and packaging services for petroleum products and by-products including the refining of naphthenic crude oil; land and marine transportation services for petroleum products and by-products, chemicals, and specialty products; sulfur and sulfur-based products processing, manufacturing, marketing and distribution; and NGL marketing, distribution, and transportation services. The Partnership provide specialty services to major and independent oil and gas companies, independent refiners, large chemical companies, and other wholesale purchasers of certain petroleum products and by-products, with significant business concentrated around the U.S. Gulf Coast refinery complex, which is a major hub for petroleum refining, natural gas gathering and processing, and support services for the exploration and production industry. The petroleum products and by-products the Partnership gathers, transports, stores and markets are produced primarily by major and independent oil and gas companies who often rely on third parties, such as the Partnership, for the transportation and disposition of these products. On August 30, 2013, Martin Resource Management Corporation completed the sale of a 49% non-controlling voting interest ( 50% economic interest) in MMGP Holdings, LLC ("Holdings"), a newly-formed sole member of Martin Midstream GP LLC ("MMGP"), the general partner of the Partnership, to certain affiliated investment funds managed by Alinda Capital Partners ("Alinda"). Upon closing the transaction, Alinda appointed two |
Significant Accounting Policies
Significant Accounting Policies and Practices | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Practices | SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES (a) Principles of Presentation and Consolidation The consolidated financial statements include the financial statements of the Partnership and its wholly-owned subsidiaries and equity method investees. In the opinion of the management of the Partnership’s general partner, all adjustments and elimination of significant intercompany balances necessary for a fair presentation of the Partnership’s results of operations, financial position and cash flows for the periods shown have been made. All such adjustments are of a normal recurring nature. In addition, the Partnership evaluates its relationships with other entities to identify whether they are variable interest entities under certain provisions of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC"), 810-10 and to assess whether it is the primary beneficiary of such entities. If the determination is made that the Partnership is the primary beneficiary, then that entity is included in the consolidated financial statements in accordance with ASC 810-10. No such variable interest entities exist as of December 31, 2019 or 2018 . Divestiture of Natural Gas Storage Assets. On June 28, 2019, the Partnership completed the sale of its membership interests in Arcadia Gas Storage, LLC, Cadeville Gas Storage LLC, Monroe Gas Storage Company, LLC and Perryville Gas Storage LLC (the "Natural Gas Storage Assets") to Hartree Cardinal Gas, LLC ("Hartree"), a subsidiary of Hartree Bulk Storage, LLC. The Natural Gas Storage Assets consist of approximately 50 billion cubic feet of working capacity located in northern Louisiana and Mississippi. In consideration of the sale of the Natural Gas Storage Assets, the Partnership received cash proceeds of $210,067 after transaction fees and expenses. The net proceeds were used to reduce outstanding borrowings under the Partnership's revolving credit facility. The Partnership has concluded the disposition represents a strategic shift and will have a major effect on its financial results going forward. As a result, the Partnership has presented the results of operations and cash flows relating to the Natural Gas Storage Assets as discontinued operations for the years ended December 31, 2019, 2018, and 2017. See Note 5 for more information. Acquisition of Martin Transport, Inc. On January 2, 2019, the Partnership acquired all of the issued and outstanding equity interests of Martin Transport, Inc. ("MTI") from Martin Resource Management Corporation. MTI operates a fleet of tank trucks providing transportation of petroleum products, liquid petroleum gas, chemicals, sulfur and other products, as well as owns 23 terminals located throughout the U.S. Gulf Coast and Southeastern United States. The acquisition of MTI was considered a transfer of net assets between entities under common control. As a result, the acquisition of MTI was recorded at amounts based on the historical carrying value of these assets at January 1, 2019, and the Partnership is required to update its historical financial statements to include the activities of MTI as of the date of common control. See Note 4 for more information. The Partnership’s accompanying historical financial statements have been retrospectively updated to reflect the effects on financial position, cash flows and results of operations attributable to the activities of MTI as if the Partnership owned these assets for the periods presented. See Note 4 for separate results of MTI for the years ended December 31, 2018 and 2017. Net income attributable to MTI for periods prior to the Partnership’s acquisition of the assets is not allocated to the limited partners for purposes of calculating net income per limited partner unit. See Note 17. Divestiture of WTLPG Partnership Interest. On July 31, 2018, the Partnership completed the sale of its 20 percent non-operating interest in West Texas LPG Pipeline L.P. ("WTLPG") to ONEOK, Inc. ("ONEOK"). WTLPG owns an approximate 2,300 mile common-carrier pipeline system that primarily transports NGLs from New Mexico and Texas to Mont Belvieu, Texas for fractionation. A wholly-owned subsidiary of ONEOK, Inc. is the operator of the assets. The Partnership has concluded the disposition represents a strategic shift and will have a major effect on its financial results going forward. As a result, the Partnership has presented the results of operations and cash flows relating to its equity method investment in WTLPG as discontinued operations for the years ended December 31, 2018 and 2017. See Note 5 for more information. (b) Product Exchanges The Partnership enters into product exchange agreements with third parties, whereby the Partnership agrees to exchange NGLs and sulfur with third parties. The Partnership records the balance of exchange products due to other companies under these agreements at quoted market product prices and the balance of exchange products due from other companies at the lower of cost or market. Cost is determined using the first-in, first-out ("FIFO") method. Product exchanges with the same counterparty are entered into in contemplation of one another and are combined. The net amount related to location differentials is reported in "Product sales" or "Cost of products sold" in the Consolidated Statements of Operations. (c) Inventories Inventories are stated at the lower of cost or market. Cost is generally determined by using the FIFO method for all inventories except lubricants and lubricants packaging inventories. Lubricants and lubricants packaging inventories cost is determined using standard cost, which approximates actual cost, computed on a FIFO basis. (d) Revenue Recognition Terminalling and Storage – Revenue is recognized for storage contracts based on the contracted monthly tank fixed fee. For throughput contracts, revenue is recognized based on the volume moved through the Partnership’s terminals at the contracted rate. For the Partnership’s tolling agreement, revenue is recognized based on the contracted monthly reservation fee and throughput volumes moved through the facility. When lubricants and drilling fluids are sold by truck or rail, revenue is recognized when title is transfered, which is either upon delivering product to the customer or when the product leaves the Partnership's facility, depending on the specific terms of the contract. Delivery of product is invoiced as the transaction occurs and is generally paid within a month. Transportation – Revenue related to land transportation is recognized for line hauls based on a mileage rate. For contracted trips, revenue is recognized upon completion of the particular trip. The performance of the service is invoiced as the transaction occurs and is generally paid within a month. Revenue related to marine transportation is recognized for time charters based on a per day rate. For contracted trips, revenue is recognized upon completion of the particular trip. The performance of the service is invoiced as the transaction occurs and is generally paid within a month. Sulfur Services – Revenue from sulfur and fertilizer product sales is recognized when the customer takes title to the product. Delivery of product is invoiced as the transaction occurs and is generally paid within a month. Revenue from sulfur services is recognized as services are performed during each monthly period. The performance of the service is invoiced as the transaction occurs and is generally paid within a month. Natural Gas Liquids – NGL distribution revenue is recognized when product is delivered by truck, rail, or pipeline to the Partnership's NGL customers. Revenue is recognized on title transfer of the product to the customer. Delivery of product is invoiced as the transaction occurs and is generally paid within a month. (e) Equity Method Investments The Partnership uses the equity method of accounting for investments in unconsolidated entities where the ability to exercise significant influence over such entities exists. Investments in unconsolidated entities consist of capital contributions and advances plus the Partnership’s share of accumulated earnings as of the entities’ latest fiscal year-ends, less capital withdrawals and distributions. Equity method investments are subject to impairment under the provisions of ASC 323-10, which relates to the equity method of accounting for investments in common stock. No portion of the net income from these entities is included in the Partnership’s operating income. (f) Property, Plant, and Equipment Owned property, plant, and equipment is stated at cost, less accumulated depreciation. Owned buildings and equipment are depreciated using straight-line method over the estimated lives of the respective assets. Equipment under finance leases is stated at the present value of minimum lease payments less accumulated amortization. Equipment under finance leases is amortized on a straight line basis over the estimated useful life of the asset. Routine maintenance and repairs are charged to expense while costs of betterments and renewals are capitalized. When an asset is retired or sold, its cost and related accumulated depreciation are removed from the accounts, and the difference between net book value of the asset and proceeds from disposition is recognized as gain or loss. (g) Goodwill and Other Intangible Assets Goodwill is subject to a fair-value based impairment test on an annual basis, or more often if events or circumstances indicate there may be impairment. The Partnership is required to identify its reporting units and determine the carrying value of each reporting unit by assigning the assets and liabilities, including the existing goodwill and intangible assets. The Partnership is required to determine the fair value of each reporting unit and compare it to the carrying amount of the reporting unit. To the extent the carrying amount of a reporting unit exceeds the fair value of the reporting unit, the Partnership will record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. When assessing the recoverability of goodwill and other intangible assets, the Partnership may first assess qualitative factors in determining whether it is more likely than not that the fair value of a reporting unit or other intangible asset is less than its carrying amount. After assessing qualitative factors, if the Partnership determines that it is not more likely than not that the fair value of a reporting unit or other intangible asset is less than its carrying amount, then performing a quantitative assessment is not required. If an initial qualitative assessment indicates that it is more likely than not the carrying amount exceeds the fair value of a reporting unit or other intangible asset, a quantitative analysis will be performed. The Partnership may also elect to bypass the qualitative assessment and proceed directly to a quantitative analysis depending on the facts and circumstances. Of the Partnership's four reporting units, the terminalling and storage, transportation, and sulfur services reporting units contain goodwill. No goodwill impairment was recorded for the years ended December 31, 2019, 2018, or 2017. In performing a quantitative analysis, recoverability of goodwill for each reporting unit is measured using a weighting of the discounted cash flow method and two market approaches (the guideline public company method and the guideline transaction method). The discounted cash flow model incorporates discount rates commensurate with the risks involved. Use of a discounted cash flow model is common practice in assessing impairment in the absence of available transactional market evidence to determine the fair value. The key assumptions used in the discounted cash flow valuation model include discount rates, growth rates, cash flow projections and terminal value rates. Discount rates, growth rates and cash flow projections are the most sensitive and susceptible to change as they require significant management judgment. Discount rates are determined by using a weighted average cost of capital ("WACC"). The WACC considers market and industry data as well as company-specific risk factors for each reporting unit in determining the appropriate discount rate to be used. The discount rate utilized for each reporting unit is indicative of the return an investor would expect to receive for investing in such a business. Management, considering industry and company specific historical and projected data, develops growth rates and cash flow projections for each reporting unit. Terminal value rate determination follows common methodology of capturing the present value of perpetual cash flow estimates beyond the last projected period assuming a constant WACC and low long-term growth rates. If the calculated fair value is less than the current carrying amount, the Partnership will record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. Significant changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit which could give rise to future impairment. Changes to these estimates and assumptions can include, but may not be limited to, varying commodity prices, volume changes and operating costs due to market conditions and/or alternative providers of services. Other intangible assets that have finite lives are tested for impairment when events or circumstances indicate that the carrying value may not be recoverable. An impairment is indicated if the carrying amount of a long-lived intangible asset exceeds the sum of the undiscounted future cash flows expected to result from the use and eventual disposition of the asset. If impairment is indicated, the Partnership would record an impairment loss equal to the difference between the carrying value and the fair value of the asset. There were no intangible asset impairments in 2019, 2018 or 2017. (h) Debt Issuance Costs Debt issuance costs relating to the Partnership’s revolving credit facility and senior unsecured notes are deferred and amortized over the terms of the debt arrangements and are shown, net of accumulated amortization, as a reduction of the related long-term debt. In connection with the issuance, amendment, expansion and restatement of debt arrangements, the Partnership incurred debt issuance costs of $4,406 , $1,312 and $66 in the years ended December 31, 2019 , 2018 and 2017 , respectively. In connection with the Partnership's July 18, 2019 revolving credit facility amendment, the Partnership expensed $608 of unamortized debt issuance costs determined not to have continuing benefit. Remaining unamortized deferred issuance costs are amortized over the term of each respective revised debt arrangement. Amortization and write-off of debt issuance costs, which is included in interest expense, totaled $4,041 , $3,445 and $2,897 for the years ended December 31, 2019 , 2018 and 2017 , respectively. Accumulated amortization amounted to $24,644 and $20,607 at December 31, 2019 and 2018 , respectively. (i) Impairment of Long-Lived Assets In accordance with ASC 360-10, long-lived assets, such as property, plant and equipment, and intangible assets with definite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell and would no longer be depreciated. The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet. In the fourth quarter of 2017, the Partnership identified a triggering event related to the planned disposition of certain assets that were no longer deemed core assets in the Partnership's Marine Transportation division of the Transportation segment. The triggering event was the assets' inability to generate cash flows in recent quarters and going forward. As a result, an impairment charge of $1,625 was recorded in the Transportation segment results of operations in the fourth quarter of 2017. Additionally, the Partnership recorded an adjustment to the fair value less cost to sell of a certain asset classified as held for sale in the Martin Lubricants division of the Terminalling and Storage segment. As a result, an impairment charge of $600 was recorded in the Terminalling and Storage segment results of operations in the fourth quarter of 2017. On August 25, 2017, Hurricane Harvey made landfall as a Category 4 hurricane. The storm lingered over Texas and Louisiana for days producing over 50 inches of rain in some areas, resulting in widespread flooding and damage. The Partnership experienced an impact from Hurricane Harvey in our Terminalling and Storage and Sulfur Services segments, where damages were suffered to the Partnership's property, plant, and equipment at its Neches, Stanolind, Galveston, and Harbor Island terminals located along the Texas gulf coast. The damage incurred did not exceed the insurance deductible at these locations and therefore the Partnership did not receive any insurance proceeds resulting from the damage from Hurricane Harvey. In the third quarter of 2017, the Partnership recorded a write-off in the amount of $186 related to assets damaged. (j) Asset Retirement Obligations Under ASC 410-20, which relates to accounting requirements for costs associated with legal obligations to retire tangible, long-lived assets, the Partnership records an asset retirement obligation ("ARO") at fair value in the period in which it is incurred by increasing the carrying amount of the related long-lived asset. In each subsequent period, the liability is accreted over time towards the ultimate obligation amount and the capitalized costs are depreciated over the useful life of the related asset. (k) Derivative Instruments and Hedging Activities In accordance with certain provisions of ASC 815-10 related to accounting for derivative instruments and hedging activities, all derivatives and hedging instruments are included in the Consolidated Balance Sheets as an asset or liability measured at fair value and changes in fair value are recognized currently in earnings unless specific hedge accounting criteria are met. If a derivative qualifies for hedge accounting, changes in the fair value can be offset against the change in the fair value of the hedged item through earnings or recognized in other comprehensive income until such time as the hedged item is recognized in earnings. Derivative instruments not designated as hedges are marked to market with all market value adjustments being recorded in the Consolidated Statements of Operations. (l) Use of Estimates Management has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these consolidated financial statements in conformity with accounting principles generally accepted in the U.S. Actual results could differ from those estimates. (m) Indirect Selling, General and Administrative Expenses Indirect selling, general and administrative expenses are incurred by Martin Resource Management Corporation and allocated to the Partnership to cover costs of centralized corporate functions such as accounting, treasury, engineering, information technology, risk management and other corporate services. Such expenses are based on the percentage of time spent by Martin Resource Management Corporation’s personnel that provide such centralized services. Under an omnibus agreement with Martin Resource Management Corporation, the Partnership is required to reimburse Martin Resource Management Corporation for indirect general and administrative and corporate overhead expenses. For the years ended December 31, 2019 , 2018 and 2017 , the conflicts committee of the Partnership's general partner ("Conflicts Committee") approved reimbursement amounts of $16,657 , $16,416 and $16,416 , respectively, reflecting the Partnership's allocable share of such expenses. The Conflicts Committee will review and approve future adjustments in the reimbursement amount for indirect expenses, if any, annually. (n) Environmental Liabilities and Litigation The Partnership’s policy is to accrue for losses associated with environmental remediation obligations when such losses are probable and reasonably estimable. Accruals for estimated losses from environmental remediation obligations generally are recognized no later than completion of the remedial feasibility study. Such accruals are adjusted as further information develops or circumstances change. Costs of future expenditures for environmental remediation obligations are not discounted to their present value. Recoveries of environmental remediation costs from other parties are recorded as assets when their receipt is deemed probable. (o) Trade and Accrued Accounts Receivable and Allowance for Doubtful Accounts. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Partnership’s best estimate of the amount of probable credit losses in the Partnership’s existing accounts receivable. (p) Deferred Catalyst Costs The cost of the periodic replacement of catalysts is deferred and amortized over the catalyst’s estimated useful life, which ranges from 12 to 36 months. (q) Deferred Turnaround Costs The Partnership capitalizes the cost of major turnarounds and amortizes these costs over the estimated period to the next turnaround, which ranges from 12 to 36 months. (r) Income Taxes The Partnership is subject to the Texas margin tax, which is considered a state income tax, and is included in income tax expense on the Consolidated Statements of Operations. Since the tax base on the Texas margin tax is derived from an income-based measure, the margin tax is construed as an income tax and, therefore, the recognition of deferred taxes applies to the margin tax. The impact on deferred taxes as a result of this provision is immaterial. Prior to the acquisition of MTI on January 2, 2019, MTI was a Qualified Subchapter S subsidiary ("QSub") of Martin Resource Management Corporation, a qualifying S Corporation. A QSub is not treated as a separate corporation for federal income tax purposes as it is deemed liquidated into its S Corporation parent. S Corporations are generally not subject to income taxes because income and losses flow through to shareholders and are reported on their individual returns. Three states in which MTI was subject to taxation prior to the acquisition - Louisiana, New Jersey and Tennessee - do not recognize the federal S Corporation status and, therefore, taxed MTI on a C Corporation basis. Subsequent to the acquisition, the QSub election terminated resulting in MTI being taxed as a stand-alone C Corporation. The Partnership's financial statements recognize the current and deferred income tax consequences that result from MTI’s activities during the current period pursuant to the provisions of the FASB ASC 740 related to income taxes. As a result of the common control transaction with the Partnership, the deferred tax consequences of the changes in the tax bases of MTI’s assets and liabilities were included in equity (ASC 740-20-45-11). With respect to the Partnership’s taxable subsidiary (MTI), income taxes are accounted for under the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. In the ordinary course of business, there may be many transactions and calculations where the ultimate tax outcome is uncertain. The calculation of tax liabilities involves dealing with uncertainties in the application of complex tax laws. In accordance with the provisions of ASC 740, we use a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return. In the first step, "recognition", the Partnership determines whether it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, the Partnership presumes that the position will be examined by the appropriate taxing authority that has full knowledge of all relevant information. In the second step, "measurement", a tax position that meets the more-likely-than-not threshold is measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement based upon management’s intent regarding negotiation and litigation. In evaluating all income tax positions for all open years, management has determined all positions are more likely than not to be sustained at full benefit based upon their technical merit under applicable tax laws. (s) Comprehensive Income Comprehensive income includes net income and other comprehensive income. There are no items of other comprehensive income or loss in any of the years presented. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS In June 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-07, Compensation - Stock Compensation: Improvements to Non-employee Share-Based Payment Accounting , which will expand the scope of FASB Accounting Standards Codification ("ASC") 718 to include share-based payment transactions for acquiring goods and services from non-employees. The standard is effective for the Partnership's financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Partnership adopted this standard effective January 1, 2019. The result of this adoption did not have a material impact on the Partnership's consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases , which introduces the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance. Lessor accounting under the new standard is substantially unchanged and substantially all of our leases will continue to be classified as operating leases under the new standard. Additional qualitative and quantitative disclosures, including significant judgments made by management are required. The update is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those reporting periods, with early adoption permitted. The original guidance required application on a modified retrospective basis with the earliest period presented. In August 2018, the FASB issued ASU 2018-11, Targeted Improvements to Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 842 , which includes an option to not restate comparative periods in transition and elect to use the effective date of ASC 842, Leases, as the date of initial application of transition. The Partnership adopted this ASU on January 1, 2019, electing the transition option provided under ASU 2018-11. Consequently, financial information was not updated and the disclosures required under the new standard are not provided for dates and periods before January 1, 2019. The new standard provides a number of optional practical expedients in transition. The Partnership elected the "package of practical expedients", which permits the Partnership not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. The new standard also provides practical expedients for an entity’s ongoing accounting. The Partnership elected the short-term lease recognition exemption for all leases that qualify. This means, for those assets that qualify, the Partnership did not recognize Right-of-Use ("ROU") assets or lease liabilities, and this includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. See Note 10 for more information. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU replaced most existing revenue recognition guidance in U.S. GAAP. The new standard is effective for the Partnership on January 1, 2018. The standard permits the use of either the retrospective or cumulative effect transition method. The Partnership adopted the new standard utilizing the cumulative effect method which resulted in no cumulative effect of the adoption being recorded as of January 1, 2018. The Partnership did not identify any significant changes in the timing of revenue recognition when considering the amended accounting guidance. Additional disclosures related to revenue recognition appear in "Note 6. Revenue." |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS Martin Transport, Inc. Stock Purchase Agreement. On January 2, 2019, the Partnership acquired all of the issued and outstanding equity interests of MTI, a wholly-owned subsidiary of Martin Resource Management Corporation which operates a fleet of tank trucks providing transportation of petroleum products, liquid petroleum gas, chemicals, sulfur and other products, as well as owns 23 terminals located throughout the U.S. Gulf Coast and Southeastern United States for total consideration as follows: Purchase price 1 $ 135,000 Plus: Working Capital Adjustment 2,795 Less: Finance lease obligations assumed (11,682 ) Cash consideration paid $ 126,113 1 The stock purchase agreement also includes a $10,000 earn-out based on certain performance thresholds. The performance threshold related to financial results for the year ended December 31, 2019 was not achieved, which resulted in a reduction in the potential earn-out by $3,333 . The transaction closed on January 2, 2019 and was effective as of January 1, 2019 and was funded with borrowings under the Partnership's revolving credit facility. This acquisition is considered a transfer of net assets between entities under common control. The acquisition of MTI was recorded at the historical carrying value of the assets at the acquisition date, which were as follows: Accounts receivable, net $ 11,724 Inventories 1,138 Due from affiliates 1,042 Other current assets 897 Property, plant and equipment, net 25,383 Goodwill 489 Other noncurrent assets 362 Current installments of finance lease obligations (5,409 ) Accounts payable (2,564 ) Due to affiliates (482 ) Other accrued liabilities (2,588 ) Finance lease obligations, net of current installments (6,272 ) Historical carrying value of assets acquired $ 23,720 The excess purchase price over the historical carrying value of the assets at the acquisition date was $102,393 and was recorded as an adjustment to "Partners' capital (deficit)". The separate results of operations related to MTI for the years ended December 31, 2018 and 2017, which were recast as part of the Partnership's Consolidated Statements of Operations, were as follows: For the Year Ended December 31, 2018 2017 Transportation revenue $ 125,333 $ 112,127 Operating expenses 105,212 104,304 Selling, general and administrative 5,246 4,449 Depreciation and amortization 3,413 2,284 Total costs and expenses 113,871 111,037 Other operating income, net 596 1,491 Operating income 12,058 2,581 Other income (expense): Interest expense (312 ) (26 ) Other, net 12 33 Income before income taxes 11,758 2,588 Income tax expense (benefit) 208 (193 ) Net income $ 11,550 $ 2,781 Acquisition of Terminalling Assets. On February 22, 2017, the Partnership acquired 100% of the membership interests of MEH South Texas Terminals LLC ("MEH"), a subsidiary of Martin Resource Management Corporation, for a purchase price of $27,420 (the "Hondo Acquisition"), which was was funded with borrowings under the Partnership's revolving credit facility. At the date of acquisition, MEH was in the process of constructing an asphalt terminal facility in Hondo, Texas (the "Hondo Terminal"), which will serve the asphalt market in San Antonio, Texas and surrounding areas. This acquisition is considered a transfer of net assets between entities under common control. The acquisition of these assets was recorded at the historical carrying value of the assets at the acquisition date. The excess of the purchase price over the carrying value of the assets of $7,887 was recorded as an adjustment to "Partners' capital." During 2018, the Partnership paid an additional $26 related to a purchase price true-up, which was recorded as a further adjustment to "Partners' capital" for the year ended December 31, 2018. Purchase price $ 27,420 Purchase price true-up 26 Historical carrying value of assets allocated to "Property, plant and equipment" 19,533 Excess purchase price over carrying value of acquired assets $ 7,913 As no individual line item of the historical financial statements of the acquired assets was in excess of 3% |
Discontinued Operations, Divest
Discontinued Operations, Divestitures, and Assets Held for Sale | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations, Divestitures, and Assets Held for Sale | DISCONTINUED OPERATIONS, DIVESTITURES, AND ASSETS HELD FOR SALE Divestitures Divestiture of East Texas Pipeline. On August 12, 2019, the Partnership completed the sale of its East Texas Pipeline for $17,500 . The Partnership recorded a gain on the disposition of $16,154 , which was included in "Other operating income, net" on the Partnership's Consolidated Statements of Operations. The net proceeds were used to reduce outstanding borrowings under the Partnership's revolving credit facility. The divestiture of the East Texas Pipeline assets did not qualify for discontinued operations presentation under the guidance of ASC 205-20. Divestiture of Natural Gas Storage Assets. On June 28, 2019, the Partnership completed the sale of the Natural Gas Storage Assets to Hartree, a subsidiary of Hartree Bulk Storage, LLC. The Natural Gas Storage Assets consist of approximately 50 billion cubic feet of working capacity located in northern Louisiana and Mississippi. In consideration of the sale of these assets, the Partnership received cash proceeds of $210,067 after transaction fees and expenses. The net proceeds were used to reduce outstanding borrowings under the Partnership's revolving credit facility. The Partnership has concluded the disposition represents a strategic shift and will have a major effect on its financial results going forward. As a result, the Partnership has presented the results of operations and cash flows relating to the Natural Gas Storage Assets as discontinued operations for the years ended December 31, 2019, 2018, and 2017. The operating results, which are included in income (loss) from discontinued operations, were as follows: For the Year Ended December 31, 2019 2018 2017 Total revenues $ 22,836 $ 52,108 $ 59,360 Total costs and expenses and other, net, excluding depreciation and amortization (15,360 ) (20,703 ) (19,940 ) Depreciation and amortization (8,161 ) (18,795 ) (22,370 ) Other operating loss, net 1 (178,781 ) (824 ) (82 ) Other, net — — 3 Income (loss) from discontinued operations before income taxes (179,466 ) 11,786 16,971 Income tax expense — — — Income (loss) from discontinued operations, net of income taxes $ (179,466 ) $ 11,786 $ 16,971 1 The year ended December 31, 2019 includes a loss on the disposition of the Natural Gas Storage Assets of $178,781 . As the disposition of the Natural Gas Storage Assets was completed prior to meeting the criteria in ASC 210-20-14 to be classified as held for sale, the Partnership has adjusted the Balance Sheet as of December 31, 2018 to present separately the assets and liabilities of the Natural Gas Storage Assets. See table below for more information. December 31, 2018 Accounts and other receivables $ 7,269 Inventories 1,942 Other current assets 217 Current assets - Natural Gas Storage Assets $ 9,428 Property, plant and equipment, at cost $ 425,138 Accumulated depreciation (49,238 ) Intangibles and other assets, net 19,489 Non-current assets - Natural Gas Storage Assets $ 395,389 Trade and other accounts payable $ 1,682 Product exchange payable 1,134 Due to affiliates 2 Other accrued liabilities 422 Current liabilities - Natural Gas Storage Assets $ 3,240 Other long-term obligations $ 669 Non-current liabilities - Natural Gas Storage Assets $ 669 Divestiture of WTLPG Partnership Interest. On July 31, 2018, the Partnership completed the sale of its 20 percent non-operating interest in WTLPG to ONEOK. WTLPG owns an approximate 2,300 mile common-carrier pipeline system that primarily transports NGLs from New Mexico and Texas to Mont Belvieu, Texas for fractionation. A wholly-owned subsidiary of ONEOK is the operator of the assets. In consideration for the sale of these assets, the Partnership received cash proceeds of $193,705 , after transaction fees and expenses. The proceeds from the sale were used to reduce outstanding borrowings under the Partnership's revolving credit facility. The Partnership has concluded the disposition represents a strategic shift and will have a major effect on its financial results going forward. As a result, the Partnership has presented the results of operations and cash flows relating to its equity method investment in WTLPG as discontinued operations for the years ended December 31, 2018 and 2017. The operating results, which are included in income from discontinued operations, were as follows: For the Year Ended December 31, 2019 2018 2017 Total costs and expenses and other, net, excluding depreciation and amortization 1 $ — $ (247 ) $ (186 ) Other operating income 2 — 48,564 — Equity in earnings — 3,383 4,314 Income from discontinued operations before income taxes — 51,700 4,128 Income tax expense — — — Income from discontinued operations, net of income taxes $ — $ 51,700 $ 4,128 1 These expenses represent direct operating expenses as a result of the Partnership's ownership interest in WTLPG. 2 Other operating income represents the gain on the disposition of the investment in WTLPG. Long-Lived Assets Held for Sale In the fourth quarter of 2017, the Partnership identified certain assets that were no longer deemed core to the operations of the Partnership in the Marine division of the Transportation segment. Additionally, the Partnership recorded an adjustment to the fair value less cost to sell of a certain asset classified as held for sale in the Martin Lubricants division of the Terminalling and Storage segment. As a result, an impairment charge of $600 and $1,625 was recorded in the Terminalling and Storage and Transportation segments, respectively, in the fourth quarter of 2017 and was presented as "Impairment of long-lived assets" in the Partnership's Consolidated Statements of Operations. At December 31, 2019 and 2018 , the assets met the criteria to be classified as held for sale in accordance with ASC 360-10 and are presented at the assets' fair value less cost to sell by segment in current assets as follows: December 31, 2019 December 31, 2018 Terminalling and storage $ 3,552 $ 3,552 Transportation 1,500 2,100 Assets held for sale $ 5,052 $ 5,652 During 2018, the Partnership received $1,002 in proceeds from the sale of assets classified as held for sale resulting in a loss of $1,022 , which was presented as a component of "Other operating income (loss), net" in the Partnership's Consolidated Statements of Operations. During 2017, the Partnership received $8,341 in proceeds from the sale of assets classified as held for sale resulting in a gain of $822 , which was presented as a component of "Other operating income (loss), net" in the Partnership's Consolidated Statements of Operations. The non-core assets discussed above did not qualify for discontinued operations presentation under the guidance of ASC 205-20. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE The following table disaggregates our revenue by major source: 2019 2018 2017 Terminalling and storage segment Lubricant product sales $ 122,257 $ 145,236 $ 130,392 Throughput and storage 87,397 96,204 99,643 $ 209,654 $ 241,440 $ 230,035 Transportation segment Land transportation $ 98,895 $ 99,751 $ 86,771 Inland transportation 54,834 44,580 42,874 Offshore transportation 5,893 5,790 5,705 $ 159,622 $ 150,121 $ 135,350 Sulfur service segment Sulfur product sales $ 30,135 $ 46,347 $ 49,204 Fertilizer product sales 69,771 75,041 74,528 Sulfur services 11,434 11,148 10,952 $ 111,340 $ 132,536 $ 134,684 Natural gas liquids segment Natural gas liquids product sales $ 366,502 $ 496,007 $ 473,317 $ 366,502 $ 496,007 $ 473,317 Revenue is measured based on a consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties where the Partnership is acting as an agent. The Partnership recognizes revenue when the Partnership satisfies a performance obligation, which typically occurs when the Partnership transfers control over a product to a customer or as the Partnership delivers a service. The following is a description of the principal activities - separated by reportable segments - from which the Partnership generates revenue. Terminalling and Storage Segment Revenue is recognized for storage contracts based on the contracted monthly tank fixed fee. For throughput contracts, revenue is recognized based on the volume moved through the Partnership’s terminals at the contracted rate. For the Partnership’s tolling agreement, revenue is recognized based on the contracted monthly reservation fee and throughput volumes moved through the facility. When lubricants and drilling fluids are sold by truck or rail, revenue is recognized when title is transfered, which is either upon delivering product to the customer or when the product leaves the Partnership's facility, depending on the specific terms of the contract. Delivery of product is invoiced as the transaction occurs and is generally paid within a month. Throughput and storage revenue in the table above includes non-cancelable revenue arrangements that are under the scope of ASC 842, whereby the Partnership has committed certain Terminalling and Storage assets in exchange for a minimum fee. Transportation Segment Revenue related to land transportation is recognized for line hauls based on a mileage rate. For contracted trips, revenue is recognized upon completion of the particular trip. The performance of the service is invoiced as the transaction occurs and is generally paid within a month. Revenue related to marine transportation is recognized for time charters based on a per day rate. For contracted trips, revenue is recognized upon completion of the particular trip. The performance of the service is invoiced as the transaction occurs and is generally paid within a month. Sulfur Services Segment Revenue from sulfur and fertilizer product sales is recognized when the customer takes title to the product. Delivery of product is invoiced as the transaction occurs and is generally paid within a month. Revenue from sulfur services is recognized as services are performed during each monthly period. The performance of the service is invoiced as the transaction occurs and is generally paid within a month. Natural Gas Liquids Segment NGL distribution revenue is recognized when product is delivered by truck, rail, or pipeline to the Partnership's NGL customers. Revenue is recognized on title transfer of the product to the customer. Delivery of product is invoiced as the transaction occurs and is generally paid within a month. The table below includes estimated minimum revenue expected to be recognized in the future related to performance obligations that are unsatisfied at the end of the reporting period. The Partnership applies the practical expedient in ASC 606-10-50-14(a) and does not disclose information about remaining performance obligations that have original expected durations of one year or less. 2020 2021 2022 2023 2024 Thereafter Total Terminalling and storage Throughput and storage $ 49,405 $ 46,694 $ 42,735 $ 42,854 $ 44,197 $ 348,427 $ 574,312 Sulfur services Sulfur product sales 4,898 1,181 295 — — — 6,374 Total $ 54,303 $ 47,875 $ 43,030 $ 42,854 $ 44,197 $ 348,427 $ 580,686 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Components of inventories at December 31, 2019 and 2018 were as follows: 2019 2018 Natural gas liquids $ 19,097 $ 30,446 Sulfur 4,586 12,818 Fertilizer 15,852 14,208 Lubricants 18,925 22,887 Other 4,080 3,906 $ 62,540 $ 84,265 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | PROPERTY, PLANT, AND EQUIPMENT At December 31, 2019 and 2018 , property, plant and equipment consisted of the following: Depreciable Lives 2019 2018 Land — $ 22,083 $ 22,204 Improvements to land and buildings 10-25 years 135,666 134,783 Storage equipment 5-50 years 120,788 120,005 Marine vessels 4-25 years 182,115 191,070 Operating plant and equipment 3-50 years 343,236 352,235 Furniture, fixtures and other equipment 3-20 years 12,896 12,119 Transportation equipment 3-7 years 47,525 40,582 Construction in progress 20,419 13,437 $ 884,728 $ 886,435 Depreciation expense for the years ended December 31, 2019 , 2018 and 2017 was $53,856 , $58,615 and $61,590 , which includes amortization of fixed assets acquired under capital lease obligations of $2,686 , $1,174 , and $139 . Gross assets under capital leases were $15,367 and $14,058 at December 31, 2019 and 2018, respectively. Accumulated amortization associated with capital leases was $3,941 and $1,266 at December 31, 2019 and 2018, respectively. Additions to property, plant and equipment included in accounts payable at December 31, 2019 and 2018 were $3,791 and $2,166 , respectively. Equipment purchased under capital lease obligations was $1,308 , $10,472 , and $3,551 for the years ended December 31, 2019, 2018, and 2017, respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | GOODWILL The following table represents the goodwill balance by reporting unit at December 31, 2019 and 2018 as follows: 2019 2018 Carrying amount of goodwill: Terminalling and storage $ 11,867 $ 11,868 Natural gas liquids — 79 Sulfur services 5,349 5,349 Transportation 489 489 Total goodwill $ 17,705 $ 17,785 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | LEASES In February 2016, the FASB issued ASU 2016-02, Leases , which introduces the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance. In August 2018, the FASB issued ASU 2018-11, Targeted Improvements to ASC 842 , which includes an option to not restate comparative periods in transition and elect to use the effective date of ASC 842, Leases, as the date of initial application of transition. The Partnership elected the effective date transition method in ASC 842 and adopted the standard beginning January 1, 2019. The new standard provides a number of optional practical expedients in transition. The Partnership elected the "package of practical expedients", which permits the Partnership not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. The Partnership also elected the short-term lease recognition exemption, meaning the Partnership does not recognize ROU assets or lease liabilities for all leases that qualify. Lease agreements for all classes of assets with lease and non-lease components are combined as a single lease component. Variable lease payments are generally expensed as incurred and include certain index-based changes in rent, certain non-lease components, such as maintenance and other services provided by the lessor, and other charges included in the lease. The adoption of this standard resulted in the recording of approximately $25,552 of additional assets and liabilities on the Partnership's Consolidated Balance Sheet as of January 1, 2019. The Partnership has numerous operating leases primarily for terminal facilities and transportation and other equipment. The leases generally provide that all expenses related to the equipment are to be paid by the lessee. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Because most of the Partnership's leases do not provide an implicit rate of return, the Partnership uses its imputed collateralized rate based on the information available at commencement date in determining the present value of lease payments. The estimated rate is based on a risk-free rate plus a risk-adjusted margin. Our leases have remaining lease terms of 1 year to 17 years , some of which include options to extend the leases for up to 5 years , and some of which include options to terminate the leases within 1 year . The Partnership includes extension periods and excludes termination periods from its lease term if, at commencement, it is reasonably likely that the Partnership will exercise the option. The components of lease expense for the year ended December 31, 2019 were as follows: 2019 Operating lease cost $ 10,897 Finance lease cost: Amortization of right-of-use assets 2,686 Interest on lease liabilities 671 Short-term lease cost 13,756 Total lease cost $ 28,010 Supplemental cash flow information for the year ended December 31, 2019 related to leases was as follows: 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 24,526 Operating cash flows from finance leases 671 Financing cash flows from finance leases 5,517 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 9,122 Finance leases 1,309 Supplemental balance sheet information related to leases was as follows: 2019 Operating Leases Operating lease right-of-use assets $ 23,901 Current portion of operating lease liabilities included in "Other accrued liabilities" $ 7,722 Operating lease liabilities 16,656 Total operating lease liabilities $ 24,378 Finance Leases Property, plant and equipment, at cost $ 15,367 Accumulated depreciation (3,941 ) Property, plant and equipment, net $ 11,426 Current installments of finance lease obligations $ 6,758 Finance lease obligations 717 Total finance lease obligations $ 7,475 Weighted Average Remaining Lease Term (years) Operating leases 6.26 Finance leases 0.97 Weighted Average Discount Rate Operating leases 5.27 % Finance leases 6.83 % The Partnership’s future minimum lease obligations as of December 31, 2019 consist of the following: Operating Leases Finance Leases Year 1 $ 8,755 $ 7,049 Year 2 5,999 489 Year 3 3,586 260 Year 4 2,280 — Year 5 1,306 — Thereafter 6,809 — Total 28,735 7,798 Less amounts representing interest costs (4,357 ) (323 ) Total lease liability $ 24,378 $ 7,475 As of December 31, 2019 , we have additional operating leases for marine vessels that have not yet commenced of $4,085 . These operating leases will commence during the first quarter of 2020 with lease terms of 3 years . The Partnership's future minimum lease obligations as of December 31, 2018 consisted of the following: Operating Leases Finance Leases Year 1 $ 13,126 $ 6,022 Year 2 7,194 6,068 Year 3 4,262 223 Year 4 2,642 260 Year 5 1,749 — Thereafter 7,823 — Total $ 36,796 12,573 Less amounts representing interest costs (892 ) Present value of net minimum capital lease payments 11,681 Less current portion (5,409 ) Present value of net minimum capital lease payments, excluding current portion $ 6,272 Rent expense for continuing operating leases for the years ended December 31, 2018 and 2017 was $26,606 and $30,911 , respectively. Lessor accounting under the new standard is substantially unchanged and all of the Partnership's leases will continue to be classified as operating leases under the new standard. The Partnership has non-cancelable revenue arrangements that are under the scope of ASC 842 whereby we have committed certain terminalling and storage assets in exchange for a minimum fee. Future minimum revenues the Partnership expects to receive under these non-cancelable arrangements as of December 31, 2019 are as follows: 2020 - $19,358 ; 2021 - $14,019 ; 2022 - $13,004 ; 2023 - $12,609 ; 2024 - $12,609 ; subsequent years - $49,414 . |
Leases | LEASES In February 2016, the FASB issued ASU 2016-02, Leases , which introduces the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance. In August 2018, the FASB issued ASU 2018-11, Targeted Improvements to ASC 842 , which includes an option to not restate comparative periods in transition and elect to use the effective date of ASC 842, Leases, as the date of initial application of transition. The Partnership elected the effective date transition method in ASC 842 and adopted the standard beginning January 1, 2019. The new standard provides a number of optional practical expedients in transition. The Partnership elected the "package of practical expedients", which permits the Partnership not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. The Partnership also elected the short-term lease recognition exemption, meaning the Partnership does not recognize ROU assets or lease liabilities for all leases that qualify. Lease agreements for all classes of assets with lease and non-lease components are combined as a single lease component. Variable lease payments are generally expensed as incurred and include certain index-based changes in rent, certain non-lease components, such as maintenance and other services provided by the lessor, and other charges included in the lease. The adoption of this standard resulted in the recording of approximately $25,552 of additional assets and liabilities on the Partnership's Consolidated Balance Sheet as of January 1, 2019. The Partnership has numerous operating leases primarily for terminal facilities and transportation and other equipment. The leases generally provide that all expenses related to the equipment are to be paid by the lessee. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Because most of the Partnership's leases do not provide an implicit rate of return, the Partnership uses its imputed collateralized rate based on the information available at commencement date in determining the present value of lease payments. The estimated rate is based on a risk-free rate plus a risk-adjusted margin. Our leases have remaining lease terms of 1 year to 17 years , some of which include options to extend the leases for up to 5 years , and some of which include options to terminate the leases within 1 year . The Partnership includes extension periods and excludes termination periods from its lease term if, at commencement, it is reasonably likely that the Partnership will exercise the option. The components of lease expense for the year ended December 31, 2019 were as follows: 2019 Operating lease cost $ 10,897 Finance lease cost: Amortization of right-of-use assets 2,686 Interest on lease liabilities 671 Short-term lease cost 13,756 Total lease cost $ 28,010 Supplemental cash flow information for the year ended December 31, 2019 related to leases was as follows: 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 24,526 Operating cash flows from finance leases 671 Financing cash flows from finance leases 5,517 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 9,122 Finance leases 1,309 Supplemental balance sheet information related to leases was as follows: 2019 Operating Leases Operating lease right-of-use assets $ 23,901 Current portion of operating lease liabilities included in "Other accrued liabilities" $ 7,722 Operating lease liabilities 16,656 Total operating lease liabilities $ 24,378 Finance Leases Property, plant and equipment, at cost $ 15,367 Accumulated depreciation (3,941 ) Property, plant and equipment, net $ 11,426 Current installments of finance lease obligations $ 6,758 Finance lease obligations 717 Total finance lease obligations $ 7,475 Weighted Average Remaining Lease Term (years) Operating leases 6.26 Finance leases 0.97 Weighted Average Discount Rate Operating leases 5.27 % Finance leases 6.83 % The Partnership’s future minimum lease obligations as of December 31, 2019 consist of the following: Operating Leases Finance Leases Year 1 $ 8,755 $ 7,049 Year 2 5,999 489 Year 3 3,586 260 Year 4 2,280 — Year 5 1,306 — Thereafter 6,809 — Total 28,735 7,798 Less amounts representing interest costs (4,357 ) (323 ) Total lease liability $ 24,378 $ 7,475 As of December 31, 2019 , we have additional operating leases for marine vessels that have not yet commenced of $4,085 . These operating leases will commence during the first quarter of 2020 with lease terms of 3 years . The Partnership's future minimum lease obligations as of December 31, 2018 consisted of the following: Operating Leases Finance Leases Year 1 $ 13,126 $ 6,022 Year 2 7,194 6,068 Year 3 4,262 223 Year 4 2,642 260 Year 5 1,749 — Thereafter 7,823 — Total $ 36,796 12,573 Less amounts representing interest costs (892 ) Present value of net minimum capital lease payments 11,681 Less current portion (5,409 ) Present value of net minimum capital lease payments, excluding current portion $ 6,272 Rent expense for continuing operating leases for the years ended December 31, 2018 and 2017 was $26,606 and $30,911 , respectively. Lessor accounting under the new standard is substantially unchanged and all of the Partnership's leases will continue to be classified as operating leases under the new standard. The Partnership has non-cancelable revenue arrangements that are under the scope of ASC 842 whereby we have committed certain terminalling and storage assets in exchange for a minimum fee. Future minimum revenues the Partnership expects to receive under these non-cancelable arrangements as of December 31, 2019 are as follows: 2020 - $19,358 ; 2021 - $14,019 ; 2022 - $13,004 ; 2023 - $12,609 ; 2024 - $12,609 ; subsequent years - $49,414 . |
Investments in WTLPG
Investments in WTLPG | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in WTLPG | INVESTMENT IN WTLPG As discussed in Note 5, on July 31, 2018, the Partnership completed the sale of its 20% non-operating interest in WTLPG. Prior to the sale, the Partnership owned a 19.8% limited partnership and 0.2% general partnership interest in WTLPG. A wholly-owned subsidiary of ONEOK is the operator of the assets. WTLPG owns an approximate 2,300 mile common-carrier pipeline system that primarily transports NGLs from New Mexico and Texas to Mont Belvieu, Texas for fractionation. The Partnership accounted for its ownership interest in WTLPG under the equity method of accounting. Selected financial information for WTLPG during the period of ownership is as follows: As of July 31, Seven Months Ended July 31, Total Assets Long-Term Debt Members’ Equity/Partners' Capital Revenues Net Income 2018 WTLPG $ 928,349 $ — $ 868,894 $ 55,534 $ 16,642 As of December 31, Years ended December 31, Total Assets Long-Term Debt Members’ Equity/Partners' Capital Revenues Net Income 2017 WTLPG $ 837,163 $ — $ 787,426 $ 87,048 $ 21,571 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The Partnership uses a valuation framework based upon inputs that market participants use in pricing certain assets and liabilities. These inputs are classified into two categories: observable inputs and unobservable inputs. Observable inputs represent market data obtained from independent sources. Unobservable inputs represent the Partnership's own market assumptions. Unobservable inputs are used only if observable inputs are unavailable or not reasonably available without undue cost and effort. The two types of inputs are further prioritized into the following hierarchy: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that reflect the entity's own assumptions and are not corroborated by market data. Assets and liabilities measured at fair value on a recurring basis are summarized below: Level 2 December 31, 2019 2018 Commodity derivative contracts, net $ (667 ) $ 4 The Partnership is required to disclose estimated fair values for its financial instruments. Fair value estimates are set forth below for these financial instruments. The following methods and assumptions were used to estimate the fair value of each class of financial instrument: • Accounts and other receivables, trade and other accounts payable, accrued interest payable, other accrued liabilities, income taxes payable and due from/to affiliates: The carrying amounts approximate fair value due to the short maturity and highly liquid nature of these instruments, and as such these have been excluded from the table below. There is negligible credit risk associated with these instruments. • Long-term debt: The carrying amount of the revolving credit facility approximates fair value due to the debt having a variable interest rate and is in Level 2. The Partnership has not had any indicators which represent a change in the market spread associated with its variable interest rate debt. The estimated fair value of the senior unsecured notes is considered Level 1, as the fair value is based on quoted market prices in active markets. December 31, 2019 December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value 2021 Senior unsecured notes $ 373,374 $ 343,470 $ 372,996 $ 360,138 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Partnership’s results of operations could be materially impacted by changes in NGL prices and interest rates. In an effort to manage its exposure to these risks, the Partnership periodically enters into various derivative instruments, including commodity and interest rate hedges. All derivatives and hedging instruments are included on the balance sheet as an asset or a liability measured at fair value and changes in fair value are recognized currently in earnings. All of the Partnership's derivatives are non-hedge derivatives and therefore all changes in fair values are recognized as gains and losses in the earnings of the periods in which they occur. (a) Commodity Derivative Instruments The Partnership from time to time has used derivatives to manage the risk of commodity price fluctuation. Commodity risk is the adverse effect on the value of a liability or future purchase that results from a change in commodity price. The Partnership has established a hedging policy and monitors and manages the commodity market risk associated with potential commodity risk exposure. In addition, the Partnership has focused on utilizing counterparties for these transactions whose financial condition is appropriate for the credit risk involved in each specific transaction. The Partnership has entered into hedging transactions as of December 31, 2019 to protect a portion of its commodity price risk exposure. These hedging arrangements are in the form of swaps for NGLs. The Partnership has instruments totaling a gross notional quantity of 452 barrels settling during the period from January 31, 2020 through February 29, 2020. At December 31, 2018 , the Partnership had instruments totaling a gross notional quantity of 55 barrels settling during the period from January 31, 2019 through February 28, 2019. These instruments settle against the applicable pricing source for each grade and location. (b) Interest Rate Derivative Instruments The Partnership is exposed to market risks associated with interest rates. Market risk is the adverse effect on the value of a financial instrument that results from a change in interest rates. We minimize this market risk by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken. The Partnership periodically enters into interest rate swaps to manage interest rate risk associated with the Partnership’s variable rate credit facility and its senior unsecured notes. No such swaps were utilized during the period of January 1, 2017 through December 31, 2019. (c) Tabular Presentation of Gains and Losses on Derivative Instruments The following table summarizes the fair values and classification of the Partnership’s derivative instruments in its Consolidated Balance Sheets: Fair Values of Derivative Instruments in the Consolidated Balance Sheet Derivative Assets Derivative Liabilities Fair Values Fair Values Balance Sheet Location December 31, 2019 December 31, 2018 Balance Sheet Location December 31, 2019 December 31, 2018 Derivatives not designated as hedging instruments: Current: Commodity contracts Fair value of derivatives $ — $ 4 Fair value of derivatives $ 667 $ — Total derivatives not designated as hedging instruments $ — $ 4 $ 667 $ — Effect of Derivative Instruments on the Consolidated Statement of Operations For the Years Ended December 31, 2019 , 2018 , and 2017 Location of Gain or (Loss) Recognized in Income on Derivatives Amount of (Gain) or Loss Recognized in Income on Derivatives 2019 2018 2017 Derivatives not designated as hedging instruments: Commodity contracts Cost of products sold 5,137 (14,024 ) 1,304 Total derivatives not designated as hedging instruments $ 5,137 $ (14,024 ) $ 1,304 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS As of December 31, 2019 , Martin Resource Management Corporation owned 6,114,532 of the Partnership’s common units representing approximately 15.7% of the Partnership’s outstanding limited partnership units. Martin Resource Management Corporation controls the Partnership's general partner by virtue of its 51% voting interest in Holdings, the sole member of the Partnership's general partner. The Partnership’s general partner, MMGP, owns a 2% general partner interest in the Partnership and the Partnership’s incentive distribution rights. The Partnership’s general partner’s ability, as general partner, to manage and operate the Partnership, and Martin Resource Management Corporation’s ownership as of December 31, 2019 of approximately 15.7% of the Partnership’s outstanding limited partnership units, effectively gives Martin Resource Management Corporation the ability to veto some of the Partnership’s actions and to control the Partnership’s management. The following is a description of the Partnership’s material related party agreements: Omnibus Agreement Omnibus Agreement . The Partnership and its general partner are parties to the Omnibus Agreement dated November 1, 2002, with Martin Resource Management Corporation that governs, among other things, potential competition and indemnification obligations among the parties to the agreement, related party transactions, the provision of general administration and support services by Martin Resource Management Corporation and the Partnership’s use of certain Martin Resource Management Corporation trade names and trademarks. The Omnibus Agreement was amended on November 25, 2009, to include processing crude oil into finished products including naphthenic lubricants, distillates, asphalt and other intermediate cuts. The Omnibus Agreement was amended further on October 1, 2012, to permit the Partnership to provide certain lubricant packaging products and services to Martin Resource Management Corporation. Non-Competition Provisions . Martin Resource Management Corporation has agreed for so long as it controls the general partner of the Partnership, not to engage in the business of: • providing terminalling and storage services for petroleum products and by-products including the refining, blending and packaging of finished lubricants; • providing land and marine transportation of petroleum products, by-products, and chemicals; • distributing NGLs; and • manufacturing and selling sulfur-based fertilizer products and other sulfur-related products. This restriction does not apply to: • the ownership and/or operation on the Partnership’s behalf of any asset or group of assets owned by it or its affiliates; • any business operated by Martin Resource Management Corporation, including the following: ◦ distributing fuel oil, marine fuel and other liquids; ◦ providing marine bunkering and other shore-based marine services in Texas, Louisiana, Mississippi, Alabama, and Florida; ◦ operating a crude oil gathering business in Stephens, Arkansas; ◦ providing crude oil gathering, refining, and marketing services of base oils, asphalt, and distillate products in Smackover, Arkansas; ◦ providing crude oil marketing and transportation from the well head to the end market; ◦ operating an environmental consulting company; ◦ supplying employees and services for the operation of the Partnership's business; and ◦ operating, solely for the Partnership's account, the asphalt facilities in Omaha, Nebraska, Port Neches, Texas, and South Houston, Texas. • any business that Martin Resource Management Corporation acquires or constructs that has a fair market value of less than $5,000 ; • any business that Martin Resource Management Corporation acquires or constructs that has a fair market value of $5,000 or more if the Partnership has been offered the opportunity to purchase the business for fair market value and the Partnership declines to do so with the concurrence of the Conflicts Committee; and • any business that Martin Resource Management Corporation acquires or constructs where a portion of such business includes a restricted business and the fair market value of the restricted business is $5,000 or more and represents less than 20% of the aggregate value of the entire business to be acquired or constructed; provided that, following completion of the acquisition or construction, the Partnership will be provided the opportunity to purchase the restricted business. Services. Under the Omnibus Agreement, Martin Resource Management Corporation provides the Partnership with corporate staff, support services, and administrative services necessary to operate the Partnership’s business. The Omnibus Agreement requires the Partnership to reimburse Martin Resource Management Corporation for all direct expenses it incurs or payments it makes on the Partnership’s behalf or in connection with the operation of the Partnership’s business. There is no monetary limitation on the amount the Partnership is required to reimburse Martin Resource Management Corporation for direct expenses. In addition to the direct expenses, under the Omnibus Agreement, the Partnership is required to reimburse Martin Resource Management Corporation for indirect general and administrative and corporate overhead expenses. Effective January 1, 2019, through December 31, 2019 , the Conflicts Committee approved an annual reimbursement amount for indirect expenses of $16,657 . The Partnership reimbursed Martin Resource Management Corporation for $16,657 , $16,416 and $16,416 of indirect expenses for the years ended December 31, 2019 , 2018 and 2017 , respectively. The Conflicts Committee will review and approve future adjustments in the reimbursement amount for indirect expenses, if any, annually. These indirect expenses are intended to cover the centralized corporate functions Martin Resource Management Corporation Corporation provides to the Partnership, such as accounting, treasury, clerical, engineering, legal, billing, information technology, administration of insurance, general office expenses and employee benefit plans and other general corporate overhead functions the Partnership shares with Martin Resource Management Corporation retained businesses. The provisions of the Omnibus Agreement regarding Martin Resource Management Corporation’s services will terminate if Martin Resource Management Corporation ceases to control the general partner of the Partnership. Related Party Transactions . The Omnibus Agreement prohibits the Partnership from entering into any material agreement with Martin Resource Management Corporation without the prior approval of the Conflicts Committee. For purposes of the Omnibus Agreement, the term "material agreements" means any agreement between the Partnership and Martin Resource Management Corporation that requires aggregate annual payments in excess of the then-applicable agreed upon reimbursable amount of indirect general and administrative expenses. Please read "Services" above. License Provisions. Under the Omnibus Agreement, Martin Resource Management Corporation has granted the Partnership a nontransferable, nonexclusive, royalty-free right and license to use certain of its trade names and marks, as well as the trade names and marks used by some of its affiliates. Amendment and Termination. The Omnibus Agreement may be amended by written agreement of the parties; provided, however, that it may not be amended without the approval of the Conflicts Committee if such amendment would adversely affect the unitholders. The Omnibus Agreement was first amended on November 25, 2009, to permit the Partnership to provide refining services to Martin Resource Management Corporation. The Omnibus Agreement was amended further on October 1, 2012, to permit the Partnership to provide certain lubricant packaging products and services to Martin Resource Management Corporation. Such amendments were approved by the Conflicts Committee. The Omnibus Agreement, other than the indemnification provisions and the provisions limiting the amount for which the Partnership will reimburse Martin Resource Management Corporation for general and administrative services performed on its behalf, will terminate if the Partnership is no longer an affiliate of Martin Resource Management Corporation. Master Transportation Services Agreement Master Transportation Agreement. MTI, a wholly owned subsidiary of the Partnership, is a party to a master transportation services agreement effective January 1, 2019, with certain wholly owned subsidiaries of Martin Resource Management Corporation. Under the agreement, MTI agreed to transport Martin Resource Management Corporation's petroleum products and by-products. Term and Pricing. The agreement will continue unless either party terminates the agreement by giving at least 30 days' written notice to the other party. These rates are subject to any adjustments which are mutually agreed upon or in accordance with a price index. Additionally, shipping charges are also subject to fuel surcharges determined on a weekly basis in accordance with the U.S. Department of Energy’s national diesel price list. Indemnification. MTI has agreed to indemnify Martin Resource Management Corporation against all claims arising out of the negligence or willful misconduct of MTI and its officers, employees, agents, representatives and subcontractors. Martin Resource Management Corporation has agreed to indemnify MTI against all claims arising out of the negligence or willful misconduct of Martin Resource Management Corporation and its officers, employees, agents, representatives and subcontractors. In the event a claim is the result of the joint negligence or misconduct of MTI and Martin Resource Management Corporation, indemnification obligations will be shared in proportion to each party’s allocable share of such joint negligence or misconduct. Marine Agreements Marine Transportation Agreement . The Partnership is a party to a marine transportation agreement effective January 1, 2006, as amended, under which the Partnership provides marine transportation services to Martin Resource Management Corporation on a spot-contract basis at applicable market rates. Effective each January 1, this agreement automatically renews for consecutive one year periods unless either party terminates the agreement by giving written notice to the other party at least 60 days prior to the expiration of the then applicable term. The fees the Partnership charges Martin Resource Management Corporation are based on applicable market rates. Marine Fuel. The Partnership is a party to an agreement with Martin Resource Management Corporation dated November 1, 2002 under which Martin Resource Management Corporation provides the Partnership with marine fuel from its locations in the Gulf of Mexico at a fixed rate in excess of a price index. Under this agreement, the Partnership agreed to purchase all of its marine fuel requirements that occur in the areas serviced by Martin Resource Management Corporation. Terminal Services Agreements Diesel Fuel Terminal Services Agreement. Effective January 1, 2016, the Partnership entered into a second amended and restated terminalling services agreement under which the Partnership provides terminal services to Martin Resource Management Corporation for marine fuel distribution. At such time, the per gallon throughput fee the Partnership charged under this agreement was increased when compared to the previous agreement and may be adjusted annually based on a price index. This agreement was further amended on January 1, 2017, October 1, 2017, and April 1, 2019 to modify its minimum throughput requirements and throughput fees. The term of this agreement is currently evergreen and it will continue on a month to month basis until terminated by either party by giving 60 days’ written notice. Miscellaneous Terminal Services Agreements. The Partnership is currently party to several terminal services agreements and from time to time the Partnership may enter into other terminal service agreements for the purpose of providing terminal services to related parties. Individually, each of these agreements is immaterial but when considered in the aggregate they could be deemed material. These agreements are throughput based with a minimum volume commitment. Generally, the fees due under these agreements are adjusted annually based on a price index. Other Agreements Cross Tolling Agreement. The Partnership is a party to an amended and restated tolling agreement with Cross Oil Refining and Marketing, Inc. ("Cross") dated October 28, 2014, under which the Partnership processes crude oil into finished products, including naphthenic lubricants, distillates, asphalt and other intermediate cuts for Cross. The tolling agreement expires November 25, 2031. Under this tolling agreement, Cross agreed to toll a minimum of 6,500 barrels per day of crude oil at the facility at a fixed price per barrel. Any additional barrels are processed at a modified price per barrel. In addition, Cross agreed to pay a monthly reservation fee and a periodic fuel surcharge fee based on certain parameters specified in the tolling agreement. Further, certain capital improvements, to the extent requested by Cross, are reimbursed through a capital recovery fee. As of December 31, 2019, annual capital recovery fee reimbursement of $2,088 expired. An additional $2,586 of capital recovery fee reimbursement will expire on December 31, 2020. All of these fees (other than the fuel surcharge and capital recovery fee) are subject to escalation annually based upon the greater of 3% or the increase in the Consumer Price Index for a specified annual period. In addition, on the third, sixth and ninth anniversaries of the agreement, the parties can negotiate an upward or downward adjustment in the fees subject to their mutual agreement.Also, the Partnership renegotiated a crude transportation contract set to expire in the first half of 2022 resulting in a reduction in revenue of $2,145 annually beginning January 1, 2020. Sulfuric Acid Sales Agency Agreement . The Partnership was previously a party to a third amended and restated sulfuric acid sales agency agreement dated August 2, 2017 but effective October 1, 2017, under which a successor in interest to the agreement from Martin Resource Management Corporation, Saconix LLC ("Saconix"), a limited liability company in which Martin Resource Management Corporation held a minority equity interest, purchased and marketed the sulfuric acid produced by the Partnership’s sulfuric acid production plant at Plainview, Texas, that was not consumed by the Partnership’s internal operations. This agreement, as amended, was to remain in place until September 30, 2020 and automatically renew year to year thereafter until either party provided 90 days’ written notice of termination prior to the expiration of the then existing term. Under this agreement, the Partnership sold all of its excess sulfuric acid to Saconix, who then marketed and sold such acid to third-parties. The Partnership shared in the profit of such sales. Effective May 31, 2018, Martin Resource Management Corporation no longer holds an equity interest in Saconix. These transactions are reported below as related party transactions during the period the equity interest was held. Transactions subsequent to Martin Resource Management Corporation's disposition of the equity interest will be reported as third party transactions. Other Miscellaneous Agreements. From time to time the Partnership enters into other miscellaneous agreements with Martin Resource Management Corporation for the provision of other services or the purchase of other goods. The tables below summarize the related party transactions that are included in the related financial statement captions on the face of the Partnership’s Consolidated Statements of Operations. The revenues, costs and expenses reflected in these tables are tabulations of the related party transactions that are recorded in the corresponding caption of the Consolidated Statements of Operations and do not reflect a statement of profits and losses for related party transactions. The impact of related party revenues from sales of products and services is reflected in the Consolidated Statements of Operations as follows: Revenues: 2019 2018 2017 Terminalling and storage $ 71,733 $ 79,137 $ 82,142 Transportation 24,243 27,588 29,807 Natural gas liquids — — 122 Product sales: Natural gas liquids — — 1,037 Sulfur services 54 630 1,963 Terminalling and storage 877 667 497 931 1,297 3,497 $ 96,907 $ 108,022 $ 115,568 The impact of related party cost of products sold is reflected in the Consolidated Statements of Operations as follows: Cost of products sold: Natural gas liquids $ — $ — $ 4,354 Sulfur services 10,765 10,641 9,345 Terminalling and storage 23,859 24,613 16,672 $ 34,624 $ 35,254 $ 30,371 The impact of related party operating expenses is reflected in the Consolidated Statements of Operations as follows: Operating expenses: Transportation $ 61,376 $ 62,965 $ 63,487 Natural gas liquids 3,446 3,779 4,042 Sulfur services 4,810 5,381 5,821 Terminalling and storage 18,562 18,753 22,196 $ 88,194 $ 90,878 $ 95,546 The impact of related party selling, general and administrative expenses is reflected in the Consolidated Statements of Operations as follows: Selling, general and administrative: Transportation $ 7,107 $ 1,606 $ 35 Natural gas liquids 2,804 2,942 5,237 Sulfur services 2,850 2,684 2,526 Terminalling and storage 3,083 2,766 2,179 Indirect overhead allocation, net of reimbursement 16,778 16,443 16,416 $ 32,622 $ 26,441 $ 26,393 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 12 Months Ended |
Dec. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | SUPPLEMENTAL BALANCE SHEET INFORMATION Components of "Intangibles and other assets, net" at December 31, 2019 and 2018 were as follows: 2019 2018 Catalyst and turnaround costs $ 1,655 $ 926 Other intangible assets 936 1,310 Other 976 2,348 $ 3,567 $ 4,584 Other intangible assets consist of covenants not-to-compete and technology-based assets. Aggregate amortization expense for customer contracts and other intangible assets included in continuing operations was $5,797 , $2,353 , and $3,114 , for the years ended December 31, 2019 , 2018 and 2017 , respectively, and accumulated amortization amounted to $6,519 and $5,907 at December 31, 2019 and 2018 , respectively. Estimated amortization expense for intangibles and other assets for the years subsequent to December 31, 2019 are as follows: 2020 - $4,893 ; 2021 - $1,080 ; 2022 - $892 ; 2023 - $214 ; 2024 - $29 ; subsequent years - $26 . Components of "Other accrued liabilities" at December 31, 2019 and 2018 were as follows: 2019 2018 Accrued interest $ 10,761 $ 10,735 Asset retirement obligations 25 2,721 Property and other taxes payable 5,411 5,751 Accrued payroll 3,011 3,110 Operating lease liabilities 7,722 — Other 1,859 2,063 $ 28,789 $ 24,380 The schedule below summarizes the changes in our asset retirement obligations: Year Ended December 31, 2019 2018 (In thousands) Beginning asset retirement obligations $ 12,429 $ 13,512 Revisions to existing liabilities 1 — 4,041 Accretion expense 407 516 Liabilities settled (3,900 ) (5,640 ) Ending asset retirement obligations 8,936 12,429 Current portion of asset retirement obligations 2 (25 ) (2,721 ) Long-term portion of asset retirement obligations 3 $ 8,911 $ 9,708 1 Several factors are considered in the annual review process, including inflation rates, current estimates for removal cost, discount rates, and the estimated remaining useful life of the assets. 2 The current portion of asset retirement obligations is included in "Other current liabilities" on the Partnership's Consolidated Balance Sheets. 3 The non-current portion of asset retirement obligations is included in "Other long-term obligations" on the Partnership's Consolidated Balance Sheets. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | LONG-TERM DEBT At December 31, 2019 and 2018 , long-term debt consisted of the following: 2019 2018 $400,000 Revolving credit facility at variable interest rate (5.26% 1 weighted average at December 31, 2019), due August 2023 4 secured by substantially all of the Partnership’s assets, including, without limitation, inventory, accounts receivable, vessels, equipment, fixed assets and the interests in the Partnership’s operating subsidiaries, net of unamortized debt issuance costs of $4,586 and $3,537, respectively 2 $ 196,414 $ 283,463 $400,000 Senior notes, 7.25% interest, including unamortized premium of $344 and $650, respectively, also net of unamortized debt issuance costs of $770 and $1,454 respectively, issued $250,000 February 2013 and $150,000 April 2014, $26,200 repurchased during 2015, due February 2021, unsecured 2,3 373,374 372,996 Total long-term debt $ 569,788 $ 656,459 1 Interest rate fluctuates based on the LIBOR rate plus an applicable margin set on the date of each advance. The margin above LIBOR is set every three months. Indebtedness under the credit facility bears interest at LIBOR plus an applicable margin or the base prime rate plus an applicable margin. All amounts outstanding at December 31, 2019 and 2018 were at LIBOR plus an applicable margin. The applicable margin for revolving loans that are LIBOR loans ranges from 2.25% to 3.50% and the applicable margin for revolving loans that are base prime rate loans ranges from 1.25% to 2.50% . The applicable margin for LIBOR borrowings at December 31, 2019 is 3.50% . The credit facility contains various covenants which limit the Partnership’s ability to make certain investments and acquisitions; enter into certain agreements; incur indebtedness; sell assets; and make certain amendments to the Omnibus Agreement. The Partnership is permitted to make quarterly distributions so long as no event of default exists. 2 The Partnership is in compliance with all debt covenants as of December 31, 2019 . 3 The indentures governing the 2021 Notes restrict the Partnership’s ability to sell assets; pay distributions or repurchase units or redeem or repurchase subordinated debt; make investments; incur or guarantee additional indebtedness or issue preferred units; and consolidate, merge or transfer all or substantially all of its assets. 4 On July 18, 2019, the Partnership amended its revolving credit facility to, among other things, extend the maturity date from March 2020 to August 2023 and reduce commitments from $500,000 to $400,000 . The Partnership's amended revolving credit facility includes a provision which accelerates the maturity date to August 2020 if the 2021 Notes are not refinanced in a manner not prohibited by the facility, by August 19, 2020. The Partnership paid cash interest, net of capitalized interest, in the amount of $48,025 , $50,543 , and $45,728 for the years ended December 31, 2019 , 2018 and 2017 , respectively. Capitalized interest was $5 , $624 , and $730 for the years ended December 31, 2019 , 2018 and 2017 |
Partners' Capital (Deficit)
Partners' Capital (Deficit) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Partners' Capital (Deficit) | PARTNERS' CAPITAL (DEFICIT) As of December 31, 2019 , partners’ capital consisted of 38,863,389 common limited partner units, representing a 98% partnership interest, and a 2% general partner interest. Martin Resource Management Corporation, through subsidiaries, owned 6,114,532 of the Partnership's common limited partnership units representing approximately 15.7% of the Partnership's outstanding common limited partnership units. MMGP, the Partnership's general partner, owns the 2% general partnership interest. The partnership agreement of the Partnership (the "Partnership Agreement") contains specific provisions for the allocation of net income and losses to each of the partners for purposes of maintaining their respective partner capital accounts. Issuance of Common Units On February 22, 2017, the Partnership completed a public offering of 2,990,000 common units at a price of $18.00 per common unit, before the payment of underwriters' discounts, commissions and offering expenses (per unit value is in dollars, not thousands). Total proceeds from the sale of the 2,990,000 common units, net of underwriters' discounts, commissions and offering expenses, were $51,056 . Additionally, the Partnership's general partner contributed $1,098 in cash to the Partnership in conjunction with the issuance in order to maintain its 2% general partner interest in the Partnership. All of the net proceeds were used to pay down outstanding amounts under the Partnership's revolving credit facility. Incentive Distribution Rights MMGP holds a 2% general partner interest and certain incentive distribution rights ("IDRs") in the Partnership. IDRs are a separate class of non-voting limited partner interest that may be transferred or sold by the general partner under the terms of the Partnership Agreement, and represent the right to receive an increasing percentage of cash distributions after the minimum quarterly distribution and any cumulative arrearages on common units once certain target distribution levels have been achieved. The Partnership is required to distribute all of its available cash from operating surplus, as defined in the Partnership Agreement. The target distribution levels entitle the general partner to receive 2% of quarterly cash distributions up to $0.55 per unit, 15% of quarterly cash distributions in excess of $0.55 per unit until all unitholders have received $0.625 per unit, 25% of quarterly cash distributions in excess of $0.625 per unit until all unitholders have received $0.75 per unit and 50% of quarterly cash distributions in excess of $0.75 per unit. For the years ended December 31, 2019 , 2018 and 2017 , the general partner was allocated no incentive distributions. Distributions of Available Cash The Partnership distributes all of its available cash (as defined in the Partnership Agreement) within 45 days after the end of each quarter to unitholders of record and to the general partner. Available cash is generally defined as all cash and cash equivalents of the Partnership on hand at the end of each quarter less the amount of cash reserves its general partner determines in its reasonable discretion is necessary or appropriate to: (i) provide for the proper conduct of the Partnership’s business; (ii) comply with applicable law, any debt instruments or other agreements; or (iii) provide funds for distributions to unitholders and the general partner for any one or more of the next four quarters, plus all cash on the date of determination of available cash for the quarter resulting from working capital borrowings made after the end of the quarter. Net Income per Unit The Partnership follows the provisions of the FASB ASC 260-10 related to earnings per share, which addresses the application of the two-class method in determining income per unit for master limited partnerships having multiple classes of securities that may participate in partnership distributions accounted for as equity distributions. Undistributed earnings are allocated to the general partner and limited partners utilizing the contractual terms of the Partnership Agreement. Distributions to the general partner pursuant to the IDRs are limited to available cash that will be distributed as defined in the Partnership Agreement. Accordingly, the Partnership does not allocate undistributed earnings to the general partner for the IDRs because the general partner's share of available cash is the maximum amount that the general partner would be contractually entitled to receive if all earnings for the period were distributed. When current period distributions are in excess of earnings, the excess distributions for the period are to be allocated to the general partner and limited partners based on their respective sharing of losses specified in the Partnership Agreement. Additionally, as required under FASB ASC 260-10-45-61A, unvested share-based payments that entitle employees to receive non-forfeitable distributions are considered participating securities, as defined in FASB ASC 260-10-20, for earnings per unit calculations. For purposes of computing diluted net income per unit, the Partnership uses the more dilutive of the two-class and if-converted methods. Under the if-converted method, the weighted-average number of subordinated units outstanding for the period is added to the weighted-average number of common units outstanding for purposes of computing basic net income per unit and the resulting amount is compared to the diluted net income per unit computed using the two-class method. The following is a reconciliation of net income from continuing operations and net income from discontinued operations allocated to the general partner and limited partners for purposes of calculating net income attributable to limited partners per unit: Years Ended December 31, 2019 2018 2017 Continuing operations: Income from continuing operations $ 4,520 $ (7,831 ) $ (1,183 ) Less pre-acquisition income allocated to Parent — (11,550 ) (2,781 ) Less general partner’s interest in net income: Distributions payable on behalf of IDRs — — — Distributions payable on behalf of general partner interest (20 ) (689 ) (363 ) General partner interest in undistributed loss 111 302 284 Less income allocable to unvested restricted units (1 ) (12 ) (10 ) Limited partners’ interest in net income $ 4,430 $ (18,982 ) $ (3,875 ) Years Ended December 31, 2019 2018 2017 Discontinued operations: Income from discontinued operations $ (179,466 ) $ 63,486 $ 21,099 Less general partner’s interest in net income: Distributions payable on behalf of IDRs — — — Distributions payable on behalf of general partner interest 806 2,258 1,932 General partner interest in undistributed loss (4,396 ) (989 ) (1,510 ) Less income allocable to unvested restricted units 42 40 52 Limited partners’ interest in net income $ (175,918 ) $ 62,177 $ 20,625 The Partnership allocates the general partner's share of earnings between continuing and discontinued operations as a proportion of net income from continuing and discontinued operations to total net income. The following are the unit amounts used to compute the basic and diluted earnings per limited partner unit for the periods presented: Years Ended December 31, 2019 2018 2017 Basic weighted average limited partner units outstanding 38,658,881 38,907,000 38,101,583 Dilutive effect of restricted units issued — 15,678 63,318 Total weighted average limited partner diluted units outstanding 38,658,881 38,922,678 38,164,901 All outstanding units were included in the computation of diluted earnings per unit and weighted based on the number of days such units were outstanding during the period presented. All common unit equivalents were antidilutive for the year ended December 31, 2019 because the limited partners were allocated a net loss in this period. |
Unit Based Awards
Unit Based Awards | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Unit Based Awards | UNIT BASED AWARDS The Partnership recognizes compensation cost related to unit-based awards to both employees and non-employees in its consolidated financial statements in accordance with certain provisions of ASC 718. Amounts recognized in selling, general, and administrative expense in the consolidated financial statements with respect to these plans are as follows: For the Year Ended December 31, 2019 2018 2017 Employees $ 1,226 $ 1,098 $ 534 Non-employee directors 198 126 116 Total unit-based compensation expense $ 1,424 $ 1,224 $ 650 All of the Partnership's outstanding awards at December 31, 2019 met the criteria to be treated under equity classification. Long-Term Incentive Plans The Partnership's general partner has a long term incentive plan for employees and directors of the general partner and its affiliates who perform services for the Partnership. On May 26, 2017, the unitholders of the Partnership approved the Martin Midstream Partners L.P. 2017 Restricted Unit Plan. The plan currently permits the grant of awards covering an aggregate of 3,000,000 common units, all of which can be awarded in the form of restricted units. The plan is administered by the compensation committee of the general partner’s board of directors (the "Compensation Committee"). A restricted unit is a unit that is granted to grantees with certain vesting restrictions, which may be time-based and/or performance-based. Once these restrictions lapse, the grantee is entitled to full ownership of the unit without restrictions. The Compensation Committee may determine to make grants under the plan containing such terms as the Compensation Committee shall determine under the plan. With respect to time-based restricted units ("TBRU's"), the Compensation Committee will determine the time period over which restricted units granted to employees and directors will vest. The Compensation Committee may also award a percentage of restricted units with vesting requirements based upon the achievement of specified pre-established performance targets ("Performance Based Restricted Units" or "PBRU's"). The performance targets may include, but are not limited to, the following: revenue and income measures, cash flow measures, net income before interest expense and income tax expense ("EBIT"), net income before interest expense, income tax expense, and depreciation and amortization ("EBITDA"), distribution coverage metrics, expense measures, liquidity measures, market measures, corporate sustainability metrics, and other measures related to acquisitions, dispositions, operational objectives and succession planning objectives. PBRU's are earned only upon our achievement of an objective performance measure for the performance period. PBRU's which vest are payable in common units. Unvested units granted under the 2017 LTIP may or may not participate in cash distributions depending on the terms of each individual award agreement. The restricted units issued to directors generally vest in equal annual installments over a four -year period. On February 11, 2019, the Partnership issued 5,648 TBRU's to each of the Partnership's three independent directors under the 2017 LTIP. These restricted common units vest in equal installments of 1,412 units on January 24, 2020, 2021, 2022, and 2023. On March 1, 2018, the Partnership issued 301,550 TBRU's and 317,925 PBRU's to certain employees of Martin Resource Management Corporation. The TBRU's vest in equal installments over a three-year service period. The PBRU's will vest at the conclusion of a three -year performance period based on certain performance targets. In addition, the PBRU's awarded on March 1, 2018 that are achieved will only vest if the grantee is employed by Martin Resource Management Corporation on March 31, 2021. As of December 31, 2019, the Partnership is unable to ascertain if certain performance conditions will be achieved and, as such, has not recognized compensation expense for the vesting of the units. The Partnership will record compensation expense for the vested portion of the units once the achievement of the performance condition is deemed probable. The restricted units are valued at their fair value at the date of grant which is equal to the market value of common units on such date. A summary of the restricted unit activity for the year ended December 31, 2019 is provided below: Number of Units Weighted Average Grant-Date Fair Value Per Unit Non-vested, beginning of year 624,125 $ 13.78 Granted (TBRU) 16,944 $ 12.45 Vested (107,762 ) $ 13.82 Forfeited (154,288 ) $ 13.90 Non-Vested, end of year 379,019 $ 13.91 Aggregate intrinsic value, end of year $ 1,527 A summary of the restricted units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) during the years ended December 31, 2019 , 2018 and 2017 is provided below: For the Year Ended December 31, 2019 2018 2017 Aggregate intrinsic value of units vested $ 1,351 $ 1,195 $ 143 Fair value of units vested $ 1,551 $ 2,250 $ 208 As of December 31, 2019 , there was $1,753 of unrecognized compensation cost related to non-vested time-based restricted units. That cost is expected to be recognized over a weighted-average period of 1.5 years. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The components of income tax expense (benefit) from operations for the years ended December 31, 2019, 2018 and 2017 are as follows: 2019 2018 2017 Current: Federal $ 174 $ — $ — State 366 369 314 540 369 314 Deferred: Federal 882 — — State 478 208 (156 ) 1,360 208 (156 ) Total income tax expense $ 1,900 $ 577 $ 158 The operations of a partnership are generally not subject to income taxes, except for Texas margin tax, because its income is taxed directly to its partners. The Texas margin tax is considered a state income tax and is included in income tax expense on the Consolidated Statements of Operations. Since the tax base on the Texas margin tax is derived from an income-based measure, the margin tax is construed as income tax, and therefore, the recognition of deferred taxes applies to the margin tax. The impact on deferred taxes as a result of this provision is immaterial. State income taxes attributable to the Texas margin tax relating to the operation of the Partnership of $458 , $369 and $352 were recorded in income tax expense for the years ended December 31, 2019, 2018 and 2017, respectively. Prior to the acquisition of MTI on January 2, 2019, MTI was a QSub of Martin Resource Management Corporation, a qualifying S Corporation. A QSub is not treated as a separate corporation for federal income tax purposes as it is deemed liquidated into its S Corporation parent. S Corporations are generally not subject to income taxes because income and losses flow through to shareholders and are reported on their individual returns. State income taxes attributable to the pre-acquisition QSub of $0 and ($38) were recorded in income tax expense for the years ended December 31, 2018 and 2017, respectively. The principal component of the difference between the expected state tax expense and actual state tax expense relates to taxes incurred in states that do not recognize S corporation status. Subsequent to the acquisition, the QSub election terminated resulting in MTI being taxed as a stand-alone C Corporation. Total income tax expense relating to the operation of the subsidiary of $1,442 was recorded in income tax expense for the year ended December 31, 2019. The income tax expense from the subsidiary operations for the year ended December 31, 2019 differs from the "expected" tax expense (computed by applying the federal corporate rate of 21% to income before income taxes) as follows: 2019 "Expected" tax expense $ 1,116 Increase in income taxes resulting from: State income taxes, net of federal income tax expense 235 Other non-deductible items 19 Other, net 72 Actual tax expense $ 1,442 Cash paid for income taxes was $515 , $431 and $799 for the years ended December 31, 2019, 2018 and 2017, respectively. Deferred taxes are the result of differences between the bases of assets and liabilities for financial reporting and income tax purposes. Significant components of deferred tax assets and liabilities are as follows: 2019 2018 Deferred tax assets: Bad debt reserves $ 64 $ — Goodwill and intangibles 15,245 — Employee benefits 500 — Interest expense 658 — Tax loss carryforwards 12,879 — Other 147 — Total deferred tax assets 29,493 — Deferred tax liabilities: Property and equipment (6,069 ) — Operating leases (2 ) — Other — — Total deferred tax liabilities (6,071 ) — Net deferred tax assets $ 23,422 $ — Deferred tax assets are regularly reviewed for recoverability and a valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon future taxable income during the periods in which those temporary differences become deductible. In assessing the need for a valuation allowance, management considers all available positive and negative evidence, including the ability to carryback operating losses to prior periods and the expected future utilization of net operating loss carryforwards, the reversal of deferred tax liabilities, projected taxable income, and tax-planning strategies. On the basis of these considerations, as of December 31, 2019, management believes it is more likely than not that the subsidiary will realize the benefit of the existing deferred tax assets. "Income taxes payable" includes a state income tax liability related to the operation of the Partnership of $298 and $445 for the years ended December 31, 2019 and 2018, respectively. Also included in "Income taxes payable" is a federal income tax liability related to the operation of the subsidiary of $174 and $0 for the years ended December 31, 2019 and 2018, respectively. State income taxes refundable related to the operation of the subsidiary of $117 and $127 for the years ended December 31, 2019 and 2018, respectively, are included in "Other current assets". At December 31, 2019, MTI had net operating loss carryforwards for income tax purposes of approximately $73,801 related to federal and state taxes. Of these net operating loss carryforwards, approximately $14,080 will expire between 2027 and 2039 and approximately $59,721 may be carried forward indefinitely. The operations of the Partnership are generally not subject to income taxes, except as discussed above, because its income is taxed directly to its partners. The net tax basis in the Partnership's assets and liabilities is greater (less) than the reported amounts on the financial statements by approximately $78,649 and $(121,775) as of December 31, 2019 and December 31, 2018, respectively. As of December 31, 2019, the tax years that remain open to assessment are 2016-2018. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Business Segments | BUSINESS SEGMENTS The Partnership has four reportable segments: terminalling and storage, natural gas liquids, transportation, and sulfur services. The Partnership’s reportable segments are strategic business units that offer different products and services. The operating income of these segments is reviewed by the chief operating decision maker to assess performance and make business decisions. The accounting policies of the operating segments are the same as those described in Note 2. The Partnership evaluates the performance of its reportable segments based on operating income. There is no allocation of administrative expenses or interest expense. Operating Revenues Intersegment Eliminations Operating Revenues After Eliminations Depreciation and Amortization Operating Income (Loss) after Eliminations Capital Expenditures and Plant Turnaround Costs Year Ended December 31, 2019: Terminalling and storage $ 216,313 $ (6,659 ) $ 209,654 $ 30,952 $ 16,732 $ 12,987 Natural gas liquids 366,502 — 366,502 2,469 44,020 1,870 Sulfur services 111,340 — 111,340 11,332 22,721 14,853 Transportation 183,740 (24,118 ) 159,622 15,307 (7,388 ) 8,213 Indirect selling, general, and administrative — — — — (17,981 ) — Total $ 877,895 $ (30,777 ) $ 847,118 $ 60,060 $ 58,104 $ 37,923 Year Ended December 31, 2018: Terminalling and storage $ 247,840 $ (6,400 ) $ 241,440 $ 39,508 $ 17,540 $ 13,704 Natural gas liquids 496,026 (19 ) 496,007 2,488 31,581 746 Sulfur services 132,536 — 132,536 8,485 27,397 4,429 Transportation 178,163 (28,042 ) 150,121 11,003 (13,560 ) 16,335 Indirect selling, general, and administrative — — — — (17,901 ) — Total $ 1,054,565 $ (34,461 ) $ 1,020,104 $ 61,484 $ 45,057 $ 35,214 Year Ended December 31, 2017: Terminalling and storage $ 236,169 $ (6,134 ) $ 230,035 $ 45,160 $ 629 $ 29,644 Natural gas liquids 473,548 (231 ) 473,317 2,546 34,880 555 Sulfur services 134,684 — 134,684 8,117 23,205 2,611 Transportation 164,043 (28,693 ) 135,350 9,285 4,234 12,987 Indirect selling, general, and administrative — — — — (17,332 ) — Total $ 1,008,444 $ (35,058 ) $ 973,386 $ 65,108 $ 45,616 $ 45,797 Revenues from one customer in the Natural Gas Liquids segment was $112,280 , $148,103 and $114,874 for the years ended December 31, 2019 , 2018 and 2017 , respectively. The Partnership's assets by reportable segment as of December 31, 2019 and 2018 are as follows: 2019 2018 Total assets: Terminalling and storage $ 292,136 $ 298,784 Natural gas liquids 94,195 512,817 Sulfur services 110,780 115,498 Transportation 170,045 146,529 Total assets $ 667,156 $ 1,073,628 |
Quarterly Financial Information
Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | QUARTERLY FINANCIAL INFORMATION Consolidated Quarterly Income Statement Information (Unaudited) First Quarter Second Quarter Third Quarter Fourth Quarter (Dollar in thousands, except per unit amounts) 2019 Revenues $ 240,033 $ 187,323 $ 177,900 $ 241,862 Operating income 9,606 5,010 25,461 18,027 Income (loss) from continuing operations (4,758 ) (10,614 ) 13,250 6,642 Income (loss) from discontinued operations 1,102 (180,568 ) — — Net income (loss) (3,656 ) (191,182 ) 13,250 6,642 Income (loss) from continuing operations per unit (0.12 ) (0.27 ) 0.34 0.17 Limited partners' interest in net income (loss) per limited partner unit (0.09 ) (4.82 ) 0.33 0.14 First Quarter Second Quarter Third Quarter Fourth Quarter (Dollar in thousands, except per unit amounts) 2018 Revenues $ 291,718 $ 227,164 $ 234,047 $ 267,175 Operating income 20,828 4,489 5,431 14,309 Income (loss) from continuing operations 7,949 (9,453 ) (7,880 ) 1,553 Income from discontinued operations 7,087 4,927 50,443 1,029 Net income (loss) 15,036 (4,526 ) 42,563 2,582 Income (loss) from continuing operations per unit 0.21 (0.24 ) (0.20 ) 0.04 Limited partners' interest in net income (loss) per limited partner unit 0.33 (0.18 ) 1.00 (0.04 ) |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Contingencies From time to time, the Partnership is subject to various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Partnership. On December 31, 2015, the Partnership received a demand from a customer in its lubricants packaging business for defense and indemnity in connection with lawsuits filed against it in various United States District Courts, which generally allege that the customer engaged in unlawful and deceptive business practices in connection with its marketing and advertising of its private label motor oil. The Partnership disputes that it has any obligation to defend or indemnify the customer for its conduct. Accordingly, on January 7, 2016, the Partnership filed a Complaint for Declaratory Judgment in the Chancery Court of Davidson County, Tennessee requesting a judicial determination that the Partnership does not owe the customer the demanded defense and indemnity obligations. The lawsuits against the customer have been transferred to the United States District Court for the Western District of Missouri for consolidated pretrial proceedings. On March 1, 2017, at the request of the parties, the Chancery Court of Davidson County, Tennessee administratively closed the Partnership's lawsuit pending rulings in the United States District Court for the Western District of Missouri. In the event that either party moves the Chancery Court of Davidson County, Tennessee to reopen the case, we expect the Court would grant such motion and reopen the case. Further, the same customer has made a claim under the Partnership’s insurance policy. The insurer has denied the claim. However, in the event that the customer is successful in pursuing the claim, such action would negatively impact the Partnership because the Partnership has certain reimbursement obligations it would owe the insurance company. If the case is reopened or the insurance claim by the customer is successful, we are currently unable to determine the exposure we may have in this matter, if any. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Consolidating Financial Statements [Abstract] | |
Condensed Consolidating Financial Information | CONDENSED CONSOLIDATING FINANCIAL INFORMATION |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Quarterly Distribution. On January 28, 2020, the Partnership declared a quarterly cash distribution of $0.0625 per common unit for the fourth quarter of 2019, or $0.25 |
Significant Accounting Polici_2
Significant Accounting Policies and Practices (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Presentation and Consolidation | Principles of Presentation and Consolidation The consolidated financial statements include the financial statements of the Partnership and its wholly-owned subsidiaries and equity method investees. In the opinion of the management of the Partnership’s general partner, all adjustments and elimination of significant intercompany balances necessary for a fair presentation of the Partnership’s results of operations, financial position and cash flows for the periods shown have been made. All such adjustments are of a normal recurring nature. In addition, the Partnership evaluates its relationships with other entities to identify whether they are variable interest entities under certain provisions of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC"), 810-10 and to assess whether it is the primary beneficiary of such entities. If the determination is made that the Partnership is the primary beneficiary, then that entity is included in the consolidated financial statements in accordance with ASC 810-10. No such variable interest entities exist as of December 31, 2019 or 2018 . |
Product Exchanges | Product Exchanges The Partnership enters into product exchange agreements with third parties, whereby the Partnership agrees to exchange NGLs and sulfur with third parties. The Partnership records the balance of exchange products due to other companies under these agreements at quoted market product prices and the balance of exchange products due from other companies at the lower of cost or market. Cost is determined using the first-in, first-out ("FIFO") method. Product exchanges with the same counterparty are entered into in contemplation of one another and are combined. The net amount related to location differentials is reported in "Product sales" or "Cost of products sold" in the Consolidated Statements of Operations. |
Inventories | Inventories Inventories are stated at the lower of cost or market. Cost is generally determined by using the FIFO method for all inventories except lubricants and lubricants packaging inventories. Lubricants and lubricants packaging inventories cost is determined using standard cost, which approximates actual cost, computed on a FIFO basis. |
Revenue Recognition | Revenue Recognition Terminalling and Storage – Revenue is recognized for storage contracts based on the contracted monthly tank fixed fee. For throughput contracts, revenue is recognized based on the volume moved through the Partnership’s terminals at the contracted rate. For the Partnership’s tolling agreement, revenue is recognized based on the contracted monthly reservation fee and throughput volumes moved through the facility. When lubricants and drilling fluids are sold by truck or rail, revenue is recognized when title is transfered, which is either upon delivering product to the customer or when the product leaves the Partnership's facility, depending on the specific terms of the contract. Delivery of product is invoiced as the transaction occurs and is generally paid within a month. Transportation – Revenue related to land transportation is recognized for line hauls based on a mileage rate. For contracted trips, revenue is recognized upon completion of the particular trip. The performance of the service is invoiced as the transaction occurs and is generally paid within a month. Revenue related to marine transportation is recognized for time charters based on a per day rate. For contracted trips, revenue is recognized upon completion of the particular trip. The performance of the service is invoiced as the transaction occurs and is generally paid within a month. Sulfur Services – Revenue from sulfur and fertilizer product sales is recognized when the customer takes title to the product. Delivery of product is invoiced as the transaction occurs and is generally paid within a month. Revenue from sulfur services is recognized as services are performed during each monthly period. The performance of the service is invoiced as the transaction occurs and is generally paid within a month. Natural Gas Liquids – NGL distribution revenue is recognized when product is delivered by truck, rail, or pipeline to the Partnership's NGL customers. Revenue is recognized on title transfer of the product to the customer. Delivery of product is invoiced as the transaction occurs and is generally paid within a month. |
Equity Method Investments | Equity Method Investments The Partnership uses the equity method of accounting for investments in unconsolidated entities where the ability to exercise significant influence over such entities exists. Investments in unconsolidated entities consist of capital contributions and advances plus the Partnership’s share of accumulated earnings as of the entities’ latest fiscal year-ends, less capital withdrawals and distributions. Equity method investments are subject to impairment under the provisions of ASC 323-10, which relates to the equity method of accounting for investments in common stock. No portion of the net income from these entities is included in the Partnership’s operating income. |
Property, Plant and Equipment | Property, Plant, and Equipment Owned property, plant, and equipment is stated at cost, less accumulated depreciation. Owned buildings and equipment are depreciated using straight-line method over the estimated lives of the respective assets. Equipment under finance leases is stated at the present value of minimum lease payments less accumulated amortization. Equipment under finance leases is amortized on a straight line basis over the estimated useful life of the asset. Routine maintenance and repairs are charged to expense while costs of betterments and renewals are capitalized. When an asset is retired or sold, its cost and related accumulated depreciation are removed from the accounts, and the difference between net book value of the asset and proceeds from disposition is recognized as gain or loss. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill is subject to a fair-value based impairment test on an annual basis, or more often if events or circumstances indicate there may be impairment. The Partnership is required to identify its reporting units and determine the carrying value of each reporting unit by assigning the assets and liabilities, including the existing goodwill and intangible assets. The Partnership is required to determine the fair value of each reporting unit and compare it to the carrying amount of the reporting unit. To the extent the carrying amount of a reporting unit exceeds the fair value of the reporting unit, the Partnership will record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. When assessing the recoverability of goodwill and other intangible assets, the Partnership may first assess qualitative factors in determining whether it is more likely than not that the fair value of a reporting unit or other intangible asset is less than its carrying amount. After assessing qualitative factors, if the Partnership determines that it is not more likely than not that the fair value of a reporting unit or other intangible asset is less than its carrying amount, then performing a quantitative assessment is not required. If an initial qualitative assessment indicates that it is more likely than not the carrying amount exceeds the fair value of a reporting unit or other intangible asset, a quantitative analysis will be performed. The Partnership may also elect to bypass the qualitative assessment and proceed directly to a quantitative analysis depending on the facts and circumstances. Of the Partnership's four reporting units, the terminalling and storage, transportation, and sulfur services reporting units contain goodwill. No goodwill impairment was recorded for the years ended December 31, 2019, 2018, or 2017. In performing a quantitative analysis, recoverability of goodwill for each reporting unit is measured using a weighting of the discounted cash flow method and two market approaches (the guideline public company method and the guideline transaction method). The discounted cash flow model incorporates discount rates commensurate with the risks involved. Use of a discounted cash flow model is common practice in assessing impairment in the absence of available transactional market evidence to determine the fair value. The key assumptions used in the discounted cash flow valuation model include discount rates, growth rates, cash flow projections and terminal value rates. Discount rates, growth rates and cash flow projections are the most sensitive and susceptible to change as they require significant management judgment. Discount rates are determined by using a weighted average cost of capital ("WACC"). The WACC considers market and industry data as well as company-specific risk factors for each reporting unit in determining the appropriate discount rate to be used. The discount rate utilized for each reporting unit is indicative of the return an investor would expect to receive for investing in such a business. Management, considering industry and company specific historical and projected data, develops growth rates and cash flow projections for each reporting unit. Terminal value rate determination follows common methodology of capturing the present value of perpetual cash flow estimates beyond the last projected period assuming a constant WACC and low long-term growth rates. If the calculated fair value is less than the current carrying amount, the Partnership will record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. Significant changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit which could give rise to future impairment. Changes to these estimates and assumptions can include, but may not be limited to, varying commodity prices, volume changes and operating costs due to market conditions and/or alternative providers of services. |
Debt Issuance Costs | Debt Issuance Costs Debt issuance costs relating to the Partnership’s revolving credit facility and senior unsecured notes are deferred and amortized over the terms of the debt arrangements and are shown, net of accumulated amortization, as a reduction of the related long-term debt. In connection with the issuance, amendment, expansion and restatement of debt arrangements, the Partnership incurred debt issuance costs of $4,406 , $1,312 and $66 in the years ended December 31, 2019 , 2018 and 2017 , respectively. In connection with the Partnership's July 18, 2019 revolving credit facility amendment, the Partnership expensed $608 of unamortized debt issuance costs determined not to have continuing benefit. Remaining unamortized deferred issuance costs are amortized over the term of each respective revised debt arrangement. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets In accordance with ASC 360-10, long-lived assets, such as property, plant and equipment, and intangible assets with definite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell and would no longer be depreciated. The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet. |
Asset Retirement Obligations | Asset Retirement Obligations Under ASC 410-20, which relates to accounting requirements for costs associated with legal obligations to retire tangible, long-lived assets, the Partnership records an asset retirement obligation ("ARO") at fair value in the period in which it is incurred by increasing the carrying amount of the related long-lived asset. In each subsequent period, the liability is accreted over time towards the ultimate obligation amount and the capitalized costs are depreciated over the useful life of the related asset. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities In accordance with certain provisions of ASC 815-10 related to accounting for derivative instruments and hedging activities, all derivatives and hedging instruments are included in the Consolidated Balance Sheets as an asset or liability measured at fair value and changes in fair value are recognized currently in earnings unless specific hedge accounting criteria are met. If a derivative qualifies for hedge accounting, changes in the fair value can be offset against the change in the fair value of the hedged item through earnings or recognized in other comprehensive income until such time as the hedged item is recognized in earnings. Derivative instruments not designated as hedges are marked to market with all market value adjustments being recorded in the Consolidated Statements of Operations. |
Use of Estimates | Use of Estimates Management has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these consolidated financial statements in conformity with accounting principles generally accepted in the U.S. Actual results could differ from those estimates. |
Indirect Selling, General and Administrative Expense | Indirect Selling, General and Administrative Expenses Indirect selling, general and administrative expenses are incurred by Martin Resource Management Corporation and allocated to the Partnership to cover costs of centralized corporate functions such as accounting, treasury, engineering, information technology, risk management and other corporate services. Such expenses are based on the percentage of time spent by Martin Resource Management Corporation’s personnel that provide such centralized services. Under an omnibus agreement with Martin Resource Management Corporation, the Partnership is required to reimburse Martin Resource Management Corporation for indirect general and administrative and corporate overhead expenses. For the years ended December 31, 2019 , 2018 and 2017 , the conflicts committee of the Partnership's general partner ("Conflicts Committee") approved reimbursement amounts of $16,657 , $16,416 and $16,416 , respectively, reflecting the Partnership's allocable share of such expenses. The Conflicts Committee will review and approve future adjustments in the reimbursement amount for indirect expenses, if any, annually. |
Environmental Liabilities and Litigation | Environmental Liabilities and Litigation The Partnership’s policy is to accrue for losses associated with environmental remediation obligations when such losses are probable and reasonably estimable. Accruals for estimated losses from environmental remediation obligations generally are recognized no later than completion of the remedial feasibility study. Such accruals are adjusted as further information develops or circumstances change. Costs of future expenditures for environmental remediation obligations are not discounted to their present value. Recoveries of environmental remediation costs from other parties are recorded as assets when their receipt is deemed probable. |
Trade and Accrued Accounts Receivable and Allowance for Doubtful Accounts | Trade and Accrued Accounts Receivable and Allowance for Doubtful Accounts. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Partnership’s best estimate of the amount of probable credit losses in the Partnership’s existing accounts receivable. |
Deferred Catalyst Costs | Deferred Catalyst Costs The cost of the periodic replacement of catalysts is deferred and amortized over the catalyst’s estimated useful life, which ranges from 12 to 36 months. |
Deferred Turnaround Costs | Deferred Turnaround Costs The Partnership capitalizes the cost of major turnarounds and amortizes these costs over the estimated period to the next turnaround, which ranges from 12 to 36 months. |
Income Taxes | Income Taxes The Partnership is subject to the Texas margin tax, which is considered a state income tax, and is included in income tax expense on the Consolidated Statements of Operations. Since the tax base on the Texas margin tax is derived from an income-based measure, the margin tax is construed as an income tax and, therefore, the recognition of deferred taxes applies to the margin tax. The impact on deferred taxes as a result of this provision is immaterial. Prior to the acquisition of MTI on January 2, 2019, MTI was a Qualified Subchapter S subsidiary ("QSub") of Martin Resource Management Corporation, a qualifying S Corporation. A QSub is not treated as a separate corporation for federal income tax purposes as it is deemed liquidated into its S Corporation parent. S Corporations are generally not subject to income taxes because income and losses flow through to shareholders and are reported on their individual returns. Three states in which MTI was subject to taxation prior to the acquisition - Louisiana, New Jersey and Tennessee - do not recognize the federal S Corporation status and, therefore, taxed MTI on a C Corporation basis. Subsequent to the acquisition, the QSub election terminated resulting in MTI being taxed as a stand-alone C Corporation. The Partnership's financial statements recognize the current and deferred income tax consequences that result from MTI’s activities during the current period pursuant to the provisions of the FASB ASC 740 related to income taxes. As a result of the common control transaction with the Partnership, the deferred tax consequences of the changes in the tax bases of MTI’s assets and liabilities were included in equity (ASC 740-20-45-11). With respect to the Partnership’s taxable subsidiary (MTI), income taxes are accounted for under the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. In the ordinary course of business, there may be many transactions and calculations where the ultimate tax outcome is uncertain. The calculation of tax liabilities involves dealing with uncertainties in the application of complex tax laws. In accordance with the provisions of ASC 740, we use a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return. In the first step, "recognition", the Partnership determines whether it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, the Partnership presumes that the position will be examined by the appropriate taxing authority that has full knowledge of all relevant information. In the second step, "measurement", a tax position that meets the more-likely-than-not threshold is measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement based upon management’s intent regarding negotiation and litigation. In evaluating all income tax positions for all open years, management has determined all positions are more likely than not to be sustained at full benefit based upon their technical merit under applicable tax laws. |
Comprehensive Income | Comprehensive Income Comprehensive income includes net income and other comprehensive income. There are no items of other comprehensive income or loss in any of the years presented. |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS In June 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-07, Compensation - Stock Compensation: Improvements to Non-employee Share-Based Payment Accounting , which will expand the scope of FASB Accounting Standards Codification ("ASC") 718 to include share-based payment transactions for acquiring goods and services from non-employees. The standard is effective for the Partnership's financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Partnership adopted this standard effective January 1, 2019. The result of this adoption did not have a material impact on the Partnership's consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases , which introduces the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance. Lessor accounting under the new standard is substantially unchanged and substantially all of our leases will continue to be classified as operating leases under the new standard. Additional qualitative and quantitative disclosures, including significant judgments made by management are required. The update is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those reporting periods, with early adoption permitted. The original guidance required application on a modified retrospective basis with the earliest period presented. In August 2018, the FASB issued ASU 2018-11, Targeted Improvements to Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 842 , which includes an option to not restate comparative periods in transition and elect to use the effective date of ASC 842, Leases, as the date of initial application of transition. The Partnership adopted this ASU on January 1, 2019, electing the transition option provided under ASU 2018-11. Consequently, financial information was not updated and the disclosures required under the new standard are not provided for dates and periods before January 1, 2019. The new standard provides a number of optional practical expedients in transition. The Partnership elected the "package of practical expedients", which permits the Partnership not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. The new standard also provides practical expedients for an entity’s ongoing accounting. The Partnership elected the short-term lease recognition exemption for all leases that qualify. This means, for those assets that qualify, the Partnership did not recognize Right-of-Use ("ROU") assets or lease liabilities, and this includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. See Note 10 for more information. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU replaced most existing revenue recognition guidance in U.S. GAAP. The new standard is effective for the Partnership on January 1, 2018. The standard permits the use of either the retrospective or cumulative effect transition method. The Partnership adopted the new standard utilizing the cumulative effect method which resulted in no cumulative effect of the adoption being recorded as of January 1, 2018. The Partnership did not identify any significant changes in the timing of revenue recognition when considering the amended accounting guidance. Additional disclosures related to revenue recognition appear in "Note 6. Revenue." |
Fair Value Measurements | The Partnership uses a valuation framework based upon inputs that market participants use in pricing certain assets and liabilities. These inputs are classified into two categories: observable inputs and unobservable inputs. Observable inputs represent market data obtained from independent sources. Unobservable inputs represent the Partnership's own market assumptions. Unobservable inputs are used only if observable inputs are unavailable or not reasonably available without undue cost and effort. The two types of inputs are further prioritized into the following hierarchy: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that reflect the entity's own assumptions and are not corroborated by market data. |
Fair Value of Financial Instruments | The Partnership is required to disclose estimated fair values for its financial instruments. Fair value estimates are set forth below for these financial instruments. The following methods and assumptions were used to estimate the fair value of each class of financial instrument: • Accounts and other receivables, trade and other accounts payable, accrued interest payable, other accrued liabilities, income taxes payable and due from/to affiliates: The carrying amounts approximate fair value due to the short maturity and highly liquid nature of these instruments, and as such these have been excluded from the table below. There is negligible credit risk associated with these instruments. • Long-term debt: The carrying amount of the revolving credit facility approximates fair value due to the debt having a variable interest rate and is in Level 2. The Partnership has not had any indicators which represent a change in the market spread associated with its variable interest rate debt. The estimated fair value of the senior unsecured notes is considered Level 1, as the fair value is based on quoted market prices in active markets. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions | This acquisition is considered a transfer of net assets between entities under common control. The acquisition of MTI was recorded at the historical carrying value of the assets at the acquisition date, which were as follows: Accounts receivable, net $ 11,724 Inventories 1,138 Due from affiliates 1,042 Other current assets 897 Property, plant and equipment, net 25,383 Goodwill 489 Other noncurrent assets 362 Current installments of finance lease obligations (5,409 ) Accounts payable (2,564 ) Due to affiliates (482 ) Other accrued liabilities (2,588 ) Finance lease obligations, net of current installments (6,272 ) Historical carrying value of assets acquired $ 23,720 Purchase price $ 27,420 Purchase price true-up 26 Historical carrying value of assets allocated to "Property, plant and equipment" 19,533 Excess purchase price over carrying value of acquired assets $ 7,913 On January 2, 2019, the Partnership acquired all of the issued and outstanding equity interests of MTI, a wholly-owned subsidiary of Martin Resource Management Corporation which operates a fleet of tank trucks providing transportation of petroleum products, liquid petroleum gas, chemicals, sulfur and other products, as well as owns 23 terminals located throughout the U.S. Gulf Coast and Southeastern United States for total consideration as follows: Purchase price 1 $ 135,000 Plus: Working Capital Adjustment 2,795 Less: Finance lease obligations assumed (11,682 ) Cash consideration paid $ 126,113 1 The stock purchase agreement also includes a $10,000 |
Condensed Income Statement | The separate results of operations related to MTI for the years ended December 31, 2018 and 2017, which were recast as part of the Partnership's Consolidated Statements of Operations, were as follows: For the Year Ended December 31, 2018 2017 Transportation revenue $ 125,333 $ 112,127 Operating expenses 105,212 104,304 Selling, general and administrative 5,246 4,449 Depreciation and amortization 3,413 2,284 Total costs and expenses 113,871 111,037 Other operating income, net 596 1,491 Operating income 12,058 2,581 Other income (expense): Interest expense (312 ) (26 ) Other, net 12 33 Income before income taxes 11,758 2,588 Income tax expense (benefit) 208 (193 ) Net income $ 11,550 $ 2,781 |
Discontinued Operations, Dive_2
Discontinued Operations, Divestitures, and Assets Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Groups, Including Discontinued Operations | The operating results, which are included in income from discontinued operations, were as follows: For the Year Ended December 31, 2019 2018 2017 Total costs and expenses and other, net, excluding depreciation and amortization 1 $ — $ (247 ) $ (186 ) Other operating income 2 — 48,564 — Equity in earnings — 3,383 4,314 Income from discontinued operations before income taxes — 51,700 4,128 Income tax expense — — — Income from discontinued operations, net of income taxes $ — $ 51,700 $ 4,128 1 These expenses represent direct operating expenses as a result of the Partnership's ownership interest in WTLPG. 2 Other operating income represents the gain on the disposition of the investment in WTLPG. |
Disclosure of long lived assets held-for-sale | At December 31, 2019 and 2018 , the assets met the criteria to be classified as held for sale in accordance with ASC 360-10 and are presented at the assets' fair value less cost to sell by segment in current assets as follows: December 31, 2019 December 31, 2018 Terminalling and storage $ 3,552 $ 3,552 Transportation 1,500 2,100 Assets held for sale $ 5,052 $ 5,652 |
Natural Gas Storage Assets | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Groups, Including Discontinued Operations | The operating results, which are included in income (loss) from discontinued operations, were as follows: For the Year Ended December 31, 2019 2018 2017 Total revenues $ 22,836 $ 52,108 $ 59,360 Total costs and expenses and other, net, excluding depreciation and amortization (15,360 ) (20,703 ) (19,940 ) Depreciation and amortization (8,161 ) (18,795 ) (22,370 ) Other operating loss, net 1 (178,781 ) (824 ) (82 ) Other, net — — 3 Income (loss) from discontinued operations before income taxes (179,466 ) 11,786 16,971 Income tax expense — — — Income (loss) from discontinued operations, net of income taxes $ (179,466 ) $ 11,786 $ 16,971 1 The year ended December 31, 2019 includes a loss on the disposition of the Natural Gas Storage Assets of $178,781 . As the disposition of the Natural Gas Storage Assets was completed prior to meeting the criteria in ASC 210-20-14 to be classified as held for sale, the Partnership has adjusted the Balance Sheet as of December 31, 2018 to present separately the assets and liabilities of the Natural Gas Storage Assets. See table below for more information. December 31, 2018 Accounts and other receivables $ 7,269 Inventories 1,942 Other current assets 217 Current assets - Natural Gas Storage Assets $ 9,428 Property, plant and equipment, at cost $ 425,138 Accumulated depreciation (49,238 ) Intangibles and other assets, net 19,489 Non-current assets - Natural Gas Storage Assets $ 395,389 Trade and other accounts payable $ 1,682 Product exchange payable 1,134 Due to affiliates 2 Other accrued liabilities 422 Current liabilities - Natural Gas Storage Assets $ 3,240 Other long-term obligations $ 669 Non-current liabilities - Natural Gas Storage Assets $ 669 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table disaggregates our revenue by major source: 2019 2018 2017 Terminalling and storage segment Lubricant product sales $ 122,257 $ 145,236 $ 130,392 Throughput and storage 87,397 96,204 99,643 $ 209,654 $ 241,440 $ 230,035 Transportation segment Land transportation $ 98,895 $ 99,751 $ 86,771 Inland transportation 54,834 44,580 42,874 Offshore transportation 5,893 5,790 5,705 $ 159,622 $ 150,121 $ 135,350 Sulfur service segment Sulfur product sales $ 30,135 $ 46,347 $ 49,204 Fertilizer product sales 69,771 75,041 74,528 Sulfur services 11,434 11,148 10,952 $ 111,340 $ 132,536 $ 134,684 Natural gas liquids segment Natural gas liquids product sales $ 366,502 $ 496,007 $ 473,317 $ 366,502 $ 496,007 $ 473,317 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | The table below includes estimated minimum revenue expected to be recognized in the future related to performance obligations that are unsatisfied at the end of the reporting period. The Partnership applies the practical expedient in ASC 606-10-50-14(a) and does not disclose information about remaining performance obligations that have original expected durations of one year or less. 2020 2021 2022 2023 2024 Thereafter Total Terminalling and storage Throughput and storage $ 49,405 $ 46,694 $ 42,735 $ 42,854 $ 44,197 $ 348,427 $ 574,312 Sulfur services Sulfur product sales 4,898 1,181 295 — — — 6,374 Total $ 54,303 $ 47,875 $ 43,030 $ 42,854 $ 44,197 $ 348,427 $ 580,686 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Components of inventory | Components of inventories at December 31, 2019 and 2018 were as follows: 2019 2018 Natural gas liquids $ 19,097 $ 30,446 Sulfur 4,586 12,818 Fertilizer 15,852 14,208 Lubricants 18,925 22,887 Other 4,080 3,906 $ 62,540 $ 84,265 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | At December 31, 2019 and 2018 , property, plant and equipment consisted of the following: Depreciable Lives 2019 2018 Land — $ 22,083 $ 22,204 Improvements to land and buildings 10-25 years 135,666 134,783 Storage equipment 5-50 years 120,788 120,005 Marine vessels 4-25 years 182,115 191,070 Operating plant and equipment 3-50 years 343,236 352,235 Furniture, fixtures and other equipment 3-20 years 12,896 12,119 Transportation equipment 3-7 years 47,525 40,582 Construction in progress 20,419 13,437 $ 884,728 $ 886,435 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table represents the goodwill balance by reporting unit at December 31, 2019 and 2018 as follows: 2019 2018 Carrying amount of goodwill: Terminalling and storage $ 11,867 $ 11,868 Natural gas liquids — 79 Sulfur services 5,349 5,349 Transportation 489 489 Total goodwill $ 17,705 $ 17,785 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Obligations, Finance Lease | The Partnership's future minimum lease obligations as of December 31, 2018 consisted of the following: Operating Leases Finance Leases Year 1 $ 13,126 $ 6,022 Year 2 7,194 6,068 Year 3 4,262 223 Year 4 2,642 260 Year 5 1,749 — Thereafter 7,823 — Total $ 36,796 12,573 Less amounts representing interest costs (892 ) Present value of net minimum capital lease payments 11,681 Less current portion (5,409 ) Present value of net minimum capital lease payments, excluding current portion $ 6,272 The Partnership’s future minimum lease obligations as of December 31, 2019 consist of the following: Operating Leases Finance Leases Year 1 $ 8,755 $ 7,049 Year 2 5,999 489 Year 3 3,586 260 Year 4 2,280 — Year 5 1,306 — Thereafter 6,809 — Total 28,735 7,798 Less amounts representing interest costs (4,357 ) (323 ) Total lease liability $ 24,378 $ 7,475 |
Schedule of Future Minimum Obligations, Operating Leases | The Partnership’s future minimum lease obligations as of December 31, 2019 consist of the following: Operating Leases Finance Leases Year 1 $ 8,755 $ 7,049 Year 2 5,999 489 Year 3 3,586 260 Year 4 2,280 — Year 5 1,306 — Thereafter 6,809 — Total 28,735 7,798 Less amounts representing interest costs (4,357 ) (323 ) Total lease liability $ 24,378 $ 7,475 The Partnership's future minimum lease obligations as of December 31, 2018 consisted of the following: Operating Leases Finance Leases Year 1 $ 13,126 $ 6,022 Year 2 7,194 6,068 Year 3 4,262 223 Year 4 2,642 260 Year 5 1,749 — Thereafter 7,823 — Total $ 36,796 12,573 Less amounts representing interest costs (892 ) Present value of net minimum capital lease payments 11,681 Less current portion (5,409 ) Present value of net minimum capital lease payments, excluding current portion $ 6,272 |
Components of Lease Expense | The components of lease expense for the year ended December 31, 2019 were as follows: 2019 Operating lease cost $ 10,897 Finance lease cost: Amortization of right-of-use assets 2,686 Interest on lease liabilities 671 Short-term lease cost 13,756 Total lease cost $ 28,010 Supplemental cash flow information for the year ended December 31, 2019 related to leases was as follows: 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 24,526 Operating cash flows from finance leases 671 Financing cash flows from finance leases 5,517 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 9,122 Finance leases 1,309 |
Schedule of Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows: 2019 Operating Leases Operating lease right-of-use assets $ 23,901 Current portion of operating lease liabilities included in "Other accrued liabilities" $ 7,722 Operating lease liabilities 16,656 Total operating lease liabilities $ 24,378 Finance Leases Property, plant and equipment, at cost $ 15,367 Accumulated depreciation (3,941 ) Property, plant and equipment, net $ 11,426 Current installments of finance lease obligations $ 6,758 Finance lease obligations 717 Total finance lease obligations $ 7,475 Weighted Average Remaining Lease Term (years) Operating leases 6.26 Finance leases 0.97 Weighted Average Discount Rate Operating leases 5.27 % Finance leases 6.83 % |
Investments in WTLPG (Tables)
Investments in WTLPG (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Select financial information for significant unconsolidated equity-method investees | Selected financial information for WTLPG during the period of ownership is as follows: As of July 31, Seven Months Ended July 31, Total Assets Long-Term Debt Members’ Equity/Partners' Capital Revenues Net Income 2018 WTLPG $ 928,349 $ — $ 868,894 $ 55,534 $ 16,642 As of December 31, Years ended December 31, Total Assets Long-Term Debt Members’ Equity/Partners' Capital Revenues Net Income 2017 WTLPG $ 837,163 $ — $ 787,426 $ 87,048 $ 21,571 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below: Level 2 December 31, 2019 2018 Commodity derivative contracts, net $ (667 ) $ 4 The Partnership is required to disclose estimated fair values for its financial instruments. Fair value estimates are set forth below for these financial instruments. The following methods and assumptions were used to estimate the fair value of each class of financial instrument: • Accounts and other receivables, trade and other accounts payable, accrued interest payable, other accrued liabilities, income taxes payable and due from/to affiliates: The carrying amounts approximate fair value due to the short maturity and highly liquid nature of these instruments, and as such these have been excluded from the table below. There is negligible credit risk associated with these instruments. • Long-term debt: The carrying amount of the revolving credit facility approximates fair value due to the debt having a variable interest rate and is in Level 2. The Partnership has not had any indicators which represent a change in the market spread associated with its variable interest rate debt. The estimated fair value of the senior unsecured notes is considered Level 1, as the fair value is based on quoted market prices in active markets. December 31, 2019 December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value 2021 Senior unsecured notes $ 373,374 $ 343,470 $ 372,996 $ 360,138 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Effect of derivative instruments on the Consolidated Balance Sheets | The following table summarizes the fair values and classification of the Partnership’s derivative instruments in its Consolidated Balance Sheets: Fair Values of Derivative Instruments in the Consolidated Balance Sheet Derivative Assets Derivative Liabilities Fair Values Fair Values Balance Sheet Location December 31, 2019 December 31, 2018 Balance Sheet Location December 31, 2019 December 31, 2018 Derivatives not designated as hedging instruments: Current: Commodity contracts Fair value of derivatives $ — $ 4 Fair value of derivatives $ 667 $ — Total derivatives not designated as hedging instruments $ — $ 4 $ 667 $ — |
Effect of derivative instruments on the Consolidated Statement of Operations | Effect of Derivative Instruments on the Consolidated Statement of Operations For the Years Ended December 31, 2019 , 2018 , and 2017 Location of Gain or (Loss) Recognized in Income on Derivatives Amount of (Gain) or Loss Recognized in Income on Derivatives 2019 2018 2017 Derivatives not designated as hedging instruments: Commodity contracts Cost of products sold 5,137 (14,024 ) 1,304 Total derivatives not designated as hedging instruments $ 5,137 $ (14,024 ) $ 1,304 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
The Impact of Related Party Transactions | The impact of related party revenues from sales of products and services is reflected in the Consolidated Statements of Operations as follows: Revenues: 2019 2018 2017 Terminalling and storage $ 71,733 $ 79,137 $ 82,142 Transportation 24,243 27,588 29,807 Natural gas liquids — — 122 Product sales: Natural gas liquids — — 1,037 Sulfur services 54 630 1,963 Terminalling and storage 877 667 497 931 1,297 3,497 $ 96,907 $ 108,022 $ 115,568 The impact of related party cost of products sold is reflected in the Consolidated Statements of Operations as follows: Cost of products sold: Natural gas liquids $ — $ — $ 4,354 Sulfur services 10,765 10,641 9,345 Terminalling and storage 23,859 24,613 16,672 $ 34,624 $ 35,254 $ 30,371 The impact of related party operating expenses is reflected in the Consolidated Statements of Operations as follows: Operating expenses: Transportation $ 61,376 $ 62,965 $ 63,487 Natural gas liquids 3,446 3,779 4,042 Sulfur services 4,810 5,381 5,821 Terminalling and storage 18,562 18,753 22,196 $ 88,194 $ 90,878 $ 95,546 The impact of related party selling, general and administrative expenses is reflected in the Consolidated Statements of Operations as follows: Selling, general and administrative: Transportation $ 7,107 $ 1,606 $ 35 Natural gas liquids 2,804 2,942 5,237 Sulfur services 2,850 2,684 2,526 Terminalling and storage 3,083 2,766 2,179 Indirect overhead allocation, net of reimbursement 16,778 16,443 16,416 $ 32,622 $ 26,441 $ 26,393 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Intangible and Other Assets, Net | Components of "Intangibles and other assets, net" at December 31, 2019 and 2018 were as follows: 2019 2018 Catalyst and turnaround costs $ 1,655 $ 926 Other intangible assets 936 1,310 Other 976 2,348 $ 3,567 $ 4,584 |
Schedule of Other Accrued Liabilities | Components of "Other accrued liabilities" at December 31, 2019 and 2018 were as follows: 2019 2018 Accrued interest $ 10,761 $ 10,735 Asset retirement obligations 25 2,721 Property and other taxes payable 5,411 5,751 Accrued payroll 3,011 3,110 Operating lease liabilities 7,722 — Other 1,859 2,063 $ 28,789 $ 24,380 |
Schedule of Asset Retirement Obligations | The schedule below summarizes the changes in our asset retirement obligations: Year Ended December 31, 2019 2018 (In thousands) Beginning asset retirement obligations $ 12,429 $ 13,512 Revisions to existing liabilities 1 — 4,041 Accretion expense 407 516 Liabilities settled (3,900 ) (5,640 ) Ending asset retirement obligations 8,936 12,429 Current portion of asset retirement obligations 2 (25 ) (2,721 ) Long-term portion of asset retirement obligations 3 $ 8,911 $ 9,708 1 Several factors are considered in the annual review process, including inflation rates, current estimates for removal cost, discount rates, and the estimated remaining useful life of the assets. 2 The current portion of asset retirement obligations is included in "Other current liabilities" on the Partnership's Consolidated Balance Sheets. 3 The non-current portion of asset retirement obligations is included in "Other long-term obligations" on the Partnership's Consolidated Balance Sheets. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | At December 31, 2019 and 2018 , long-term debt consisted of the following: 2019 2018 $400,000 Revolving credit facility at variable interest rate (5.26% 1 weighted average at December 31, 2019), due August 2023 4 secured by substantially all of the Partnership’s assets, including, without limitation, inventory, accounts receivable, vessels, equipment, fixed assets and the interests in the Partnership’s operating subsidiaries, net of unamortized debt issuance costs of $4,586 and $3,537, respectively 2 $ 196,414 $ 283,463 $400,000 Senior notes, 7.25% interest, including unamortized premium of $344 and $650, respectively, also net of unamortized debt issuance costs of $770 and $1,454 respectively, issued $250,000 February 2013 and $150,000 April 2014, $26,200 repurchased during 2015, due February 2021, unsecured 2,3 373,374 372,996 Total long-term debt $ 569,788 $ 656,459 1 Interest rate fluctuates based on the LIBOR rate plus an applicable margin set on the date of each advance. The margin above LIBOR is set every three months. Indebtedness under the credit facility bears interest at LIBOR plus an applicable margin or the base prime rate plus an applicable margin. All amounts outstanding at December 31, 2019 and 2018 were at LIBOR plus an applicable margin. The applicable margin for revolving loans that are LIBOR loans ranges from 2.25% to 3.50% and the applicable margin for revolving loans that are base prime rate loans ranges from 1.25% to 2.50% . The applicable margin for LIBOR borrowings at December 31, 2019 is 3.50% . The credit facility contains various covenants which limit the Partnership’s ability to make certain investments and acquisitions; enter into certain agreements; incur indebtedness; sell assets; and make certain amendments to the Omnibus Agreement. The Partnership is permitted to make quarterly distributions so long as no event of default exists. 2 The Partnership is in compliance with all debt covenants as of December 31, 2019 . 3 The indentures governing the 2021 Notes restrict the Partnership’s ability to sell assets; pay distributions or repurchase units or redeem or repurchase subordinated debt; make investments; incur or guarantee additional indebtedness or issue preferred units; and consolidate, merge or transfer all or substantially all of its assets. 4 On July 18, 2019, the Partnership amended its revolving credit facility to, among other things, extend the maturity date from March 2020 to August 2023 and reduce commitments from $500,000 to $400,000 . The Partnership's amended revolving credit facility includes a provision which accelerates the maturity date to August 2020 if the 2021 Notes are not refinanced in a manner not prohibited by the facility, by August 19, 2020. |
Partners' Capital (Deficit) (Ta
Partners' Capital (Deficit) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Reconciliation of net income to partners interest in net income | The following is a reconciliation of net income from continuing operations and net income from discontinued operations allocated to the general partner and limited partners for purposes of calculating net income attributable to limited partners per unit: Years Ended December 31, 2019 2018 2017 Continuing operations: Income from continuing operations $ 4,520 $ (7,831 ) $ (1,183 ) Less pre-acquisition income allocated to Parent — (11,550 ) (2,781 ) Less general partner’s interest in net income: Distributions payable on behalf of IDRs — — — Distributions payable on behalf of general partner interest (20 ) (689 ) (363 ) General partner interest in undistributed loss 111 302 284 Less income allocable to unvested restricted units (1 ) (12 ) (10 ) Limited partners’ interest in net income $ 4,430 $ (18,982 ) $ (3,875 ) Years Ended December 31, 2019 2018 2017 Discontinued operations: Income from discontinued operations $ (179,466 ) $ 63,486 $ 21,099 Less general partner’s interest in net income: Distributions payable on behalf of IDRs — — — Distributions payable on behalf of general partner interest 806 2,258 1,932 General partner interest in undistributed loss (4,396 ) (989 ) (1,510 ) Less income allocable to unvested restricted units 42 40 52 Limited partners’ interest in net income $ (175,918 ) $ 62,177 $ 20,625 The Partnership allocates the general partner's share of earnings between continuing and discontinued operations as a proportion of net income from continuing and discontinued operations to total net income. The following are the unit amounts used to compute the basic and diluted earnings per limited partner unit for the periods presented: Years Ended December 31, 2019 2018 2017 Basic weighted average limited partner units outstanding 38,658,881 38,907,000 38,101,583 Dilutive effect of restricted units issued — 15,678 63,318 Total weighted average limited partner diluted units outstanding 38,658,881 38,922,678 38,164,901 |
Unit Based Awards (Tables)
Unit Based Awards (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of compensation costs related to unit based plan | Amounts recognized in selling, general, and administrative expense in the consolidated financial statements with respect to these plans are as follows: For the Year Ended December 31, 2019 2018 2017 Employees $ 1,226 $ 1,098 $ 534 Non-employee directors 198 126 116 Total unit-based compensation expense $ 1,424 $ 1,224 $ 650 |
Summary of restricted unit activity | A summary of the restricted unit activity for the year ended December 31, 2019 is provided below: Number of Units Weighted Average Grant-Date Fair Value Per Unit Non-vested, beginning of year 624,125 $ 13.78 Granted (TBRU) 16,944 $ 12.45 Vested (107,762 ) $ 13.82 Forfeited (154,288 ) $ 13.90 Non-Vested, end of year 379,019 $ 13.91 Aggregate intrinsic value, end of year $ 1,527 |
Summary of aggregate intrinsic value and fair value of units vested | A summary of the restricted units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) during the years ended December 31, 2019 , 2018 and 2017 is provided below: For the Year Ended December 31, 2019 2018 2017 Aggregate intrinsic value of units vested $ 1,351 $ 1,195 $ 143 Fair value of units vested $ 1,551 $ 2,250 $ 208 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) from operations for the years ended December 31, 2019, 2018 and 2017 are as follows: 2019 2018 2017 Current: Federal $ 174 $ — $ — State 366 369 314 540 369 314 Deferred: Federal 882 — — State 478 208 (156 ) 1,360 208 (156 ) Total income tax expense $ 1,900 $ 577 $ 158 |
Income Tax Reconciliation | The income tax expense from the subsidiary operations for the year ended December 31, 2019 differs from the "expected" tax expense (computed by applying the federal corporate rate of 21% to income before income taxes) as follows: 2019 "Expected" tax expense $ 1,116 Increase in income taxes resulting from: State income taxes, net of federal income tax expense 235 Other non-deductible items 19 Other, net 72 Actual tax expense $ 1,442 |
Deferred Tax Assets and Liabilities | Significant components of deferred tax assets and liabilities are as follows: 2019 2018 Deferred tax assets: Bad debt reserves $ 64 $ — Goodwill and intangibles 15,245 — Employee benefits 500 — Interest expense 658 — Tax loss carryforwards 12,879 — Other 147 — Total deferred tax assets 29,493 — Deferred tax liabilities: Property and equipment (6,069 ) — Operating leases (2 ) — Other — — Total deferred tax liabilities (6,071 ) — Net deferred tax assets $ 23,422 $ — |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information, by segment | Operating Revenues Intersegment Eliminations Operating Revenues After Eliminations Depreciation and Amortization Operating Income (Loss) after Eliminations Capital Expenditures and Plant Turnaround Costs Year Ended December 31, 2019: Terminalling and storage $ 216,313 $ (6,659 ) $ 209,654 $ 30,952 $ 16,732 $ 12,987 Natural gas liquids 366,502 — 366,502 2,469 44,020 1,870 Sulfur services 111,340 — 111,340 11,332 22,721 14,853 Transportation 183,740 (24,118 ) 159,622 15,307 (7,388 ) 8,213 Indirect selling, general, and administrative — — — — (17,981 ) — Total $ 877,895 $ (30,777 ) $ 847,118 $ 60,060 $ 58,104 $ 37,923 Year Ended December 31, 2018: Terminalling and storage $ 247,840 $ (6,400 ) $ 241,440 $ 39,508 $ 17,540 $ 13,704 Natural gas liquids 496,026 (19 ) 496,007 2,488 31,581 746 Sulfur services 132,536 — 132,536 8,485 27,397 4,429 Transportation 178,163 (28,042 ) 150,121 11,003 (13,560 ) 16,335 Indirect selling, general, and administrative — — — — (17,901 ) — Total $ 1,054,565 $ (34,461 ) $ 1,020,104 $ 61,484 $ 45,057 $ 35,214 Year Ended December 31, 2017: Terminalling and storage $ 236,169 $ (6,134 ) $ 230,035 $ 45,160 $ 629 $ 29,644 Natural gas liquids 473,548 (231 ) 473,317 2,546 34,880 555 Sulfur services 134,684 — 134,684 8,117 23,205 2,611 Transportation 164,043 (28,693 ) 135,350 9,285 4,234 12,987 Indirect selling, general, and administrative — — — — (17,332 ) — Total $ 1,008,444 $ (35,058 ) $ 973,386 $ 65,108 $ 45,616 $ 45,797 |
Assets by segment | The Partnership's assets by reportable segment as of December 31, 2019 and 2018 are as follows: 2019 2018 Total assets: Terminalling and storage $ 292,136 $ 298,784 Natural gas liquids 94,195 512,817 Sulfur services 110,780 115,498 Transportation 170,045 146,529 Total assets $ 667,156 $ 1,073,628 |
Quarterly Financial Informati_2
Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Consolidated Quarterly Income Statement Information (Unaudited) First Quarter Second Quarter Third Quarter Fourth Quarter (Dollar in thousands, except per unit amounts) 2019 Revenues $ 240,033 $ 187,323 $ 177,900 $ 241,862 Operating income 9,606 5,010 25,461 18,027 Income (loss) from continuing operations (4,758 ) (10,614 ) 13,250 6,642 Income (loss) from discontinued operations 1,102 (180,568 ) — — Net income (loss) (3,656 ) (191,182 ) 13,250 6,642 Income (loss) from continuing operations per unit (0.12 ) (0.27 ) 0.34 0.17 Limited partners' interest in net income (loss) per limited partner unit (0.09 ) (4.82 ) 0.33 0.14 First Quarter Second Quarter Third Quarter Fourth Quarter (Dollar in thousands, except per unit amounts) 2018 Revenues $ 291,718 $ 227,164 $ 234,047 $ 267,175 Operating income 20,828 4,489 5,431 14,309 Income (loss) from continuing operations 7,949 (9,453 ) (7,880 ) 1,553 Income from discontinued operations 7,087 4,927 50,443 1,029 Net income (loss) 15,036 (4,526 ) 42,563 2,582 Income (loss) from continuing operations per unit 0.21 (0.24 ) (0.20 ) 0.04 Limited partners' interest in net income (loss) per limited partner unit 0.33 (0.18 ) 1.00 (0.04 ) |
Organization and Description _2
Organization and Description of Business (Details) | Aug. 30, 2013representative | Dec. 31, 2019segment |
Schedule of Equity Method Investments [Line Items] | ||
Number of primary business lines | segment | 4 | |
Ownership percentage | 98.00% | |
Martin Resource Management | ||
Schedule of Equity Method Investments [Line Items] | ||
Economic ownership percentage by parent | 50.00% | |
Number of representatives appointed to board of directors | representative | 2 | |
Alinda Capital Partners | Martin Resource Management | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 49.00% |
Significant Accounting Polici_3
Significant Accounting Policies and Practices (Details) ft³ in Billions | Jul. 18, 2019USD ($) | Jan. 02, 2019terminal | Aug. 25, 2017Inch | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 28, 2019USD ($)ft³ | Jul. 31, 2018mi | ||
Goodwill and Other Intangibles | ||||||||||||
Number of reporting units | segment | 4 | |||||||||||
Impairment of goodwill | $ 0 | $ 0 | $ 0 | |||||||||
Impairment of intangible assets | 0 | 0 | 0 | |||||||||
Debt Issuance Costs | ||||||||||||
Debt issuance cost | 4,406,000 | 1,312,000 | [1] | 66,000 | [1] | |||||||
Amortization of debt issuance costs | 4,041,000 | 3,445,000 | [1] | 2,897,000 | [1] | |||||||
Accumulated amortization of debt issuance costs | 24,644,000 | 20,607,000 | ||||||||||
Impairment of Long-Lived Assets | ||||||||||||
Impairment of long-lived assets | 0 | 0 | [1],[2] | 2,225,000 | [1],[2] | |||||||
Indirect Selling, General and Administrative Expenses | ||||||||||||
Indirect selling, general and administrative expenses | $ 16,657,000 | $ 16,416,000 | $ 16,416,000 | |||||||||
Minimum | ||||||||||||
Deferred Catalyst Costs | ||||||||||||
Catalyst, useful life (in months) | 12 months | |||||||||||
Deferred Turnaround Costs | ||||||||||||
Turnarounds, useful life (in months) | 12 months | |||||||||||
Maximum | ||||||||||||
Deferred Catalyst Costs | ||||||||||||
Catalyst, useful life (in months) | 36 months | |||||||||||
Deferred Turnaround Costs | ||||||||||||
Turnarounds, useful life (in months) | 36 months | |||||||||||
Transportation revenue | ||||||||||||
Impairment of Long-Lived Assets | ||||||||||||
Impairment of long-lived assets | $ 1,625,000 | |||||||||||
Terminalling and storage | ||||||||||||
Impairment of Long-Lived Assets | ||||||||||||
Impairment of long-lived assets | $ 600,000 | |||||||||||
Revolving Loan Facility | ||||||||||||
Debt Issuance Costs | ||||||||||||
Write off of existing debt issuance costs | $ 608,000 | |||||||||||
Hurricane Harvey | ||||||||||||
Impairment of Long-Lived Assets | ||||||||||||
Impairment of long-lived assets | $ 186,000 | |||||||||||
Inches of rain produced | Inch | 50 | |||||||||||
Discontinued Operations, Disposed of by Sale | WTLPG | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Ownership percentage | 20.00% | |||||||||||
Length common carrier pipeline (in miles) | mi | 2,300 | |||||||||||
Natural Gas Storage Assets | Discontinued Operations, Disposed of by Sale | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Natural gas storage (in cubic feet) | ft³ | 50 | |||||||||||
Proceeds from sale of assets | $ 210,067,000 | |||||||||||
Martin Transport Inc. Stock Purchase Agreement | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Number of terminals | terminal | 23 | |||||||||||
[1] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. | |||||||||||
[2] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ in Thousands | Jan. 02, 2019USD ($)terminal | Feb. 22, 2017USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | [1] | |
Business Acquisition [Line Items] | |||||||
Excess purchase price over carrying value of acquired assets | $ 102,393 | $ 26 | [1] | $ 7,887 | |||
Martin Transport Inc. Stock Purchase Agreement | |||||||
Business Acquisition [Line Items] | |||||||
Number of terminals | terminal | 23 | ||||||
Purchase price | $ 135,000 | ||||||
MEH South Texas Terminals LLC | |||||||
Business Acquisition [Line Items] | |||||||
Excess purchase price over carrying value of acquired assets | $ 102,393 | $ 7,913 | |||||
Deferred purchase price | $ 26 | ||||||
Percentage of voting interests acquired | 100.00% | ||||||
Purchase price | $ 27,420 | ||||||
Initial excess purchase price over carrying value of acquired assets | $ 7,887 | ||||||
Excess purchase price over carrying value of acquired assets, percentage | 3.00% | ||||||
[1] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. |
Acquisitions - Purchase Price (
Acquisitions - Purchase Price (Details) - Martin Transport Inc. Stock Purchase Agreement - USD ($) $ in Thousands | Jan. 02, 2019 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||
Purchase price | $ 135,000 | |
Plus: Working Capital Adjustment | 2,795 | |
Less: Finance lease obligations assumed | (11,682) | |
Cash consideration paid | 126,113 | |
Earn - out based on performance thersholds | $ 10,000 | |
Decrease in earn-out | $ 3,333 |
Acquisitions - Assets Acquired
Acquisitions - Assets Acquired (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 02, 2019 | Dec. 31, 2018 | [1] |
Business Acquisition [Line Items] | ||||
Goodwill (Note 9) | $ 17,705 | $ 17,785 | ||
Martin Transport Inc. Stock Purchase Agreement | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable, net | $ 11,724 | |||
Inventories | 1,138 | |||
Due from affiliates | 1,042 | |||
Other current assets | 897 | |||
Property, plant and equipment, net | 25,383 | |||
Goodwill (Note 9) | 489 | |||
Other noncurrent assets | 362 | |||
Current installments of finance lease obligations | (5,409) | |||
Accounts payable | (2,564) | |||
Due to affiliates | (482) | |||
Other accrued liabilities | (2,588) | |||
Finance lease obligations, net of current installments | (6,272) | |||
Historical carrying value of assets acquired | $ 23,720 | |||
[1] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. |
Acquisitions - Partnership's Co
Acquisitions - Partnership's Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | [1] | |||
Business Acquisition [Line Items] | ||||||||||||||
Revenues | $ 241,862 | $ 177,900 | $ 187,323 | $ 240,033 | $ 267,175 | $ 234,047 | $ 227,164 | $ 291,718 | $ 847,118 | $ 1,020,104 | [1] | $ 973,386 | ||
Selling, general and administrative | [2] | 41,433 | 39,116 | [1] | 39,080 | |||||||||
Depreciation and amortization | 60,060 | 61,484 | [1],[3] | 65,108 | [3] | |||||||||
Total costs and expenses | 803,601 | 976,088 | [1] | 929,866 | ||||||||||
Other operating income, net | 14,587 | 1,041 | [1] | 2,096 | ||||||||||
Operating income | 18,027 | 25,461 | 5,010 | 9,606 | 14,309 | 5,431 | 4,489 | 20,828 | 58,104 | 45,057 | [1] | 45,616 | ||
Interest expense | (51,690) | (52,349) | [1] | (47,770) | ||||||||||
Other, net | 6 | 38 | [1] | 1,129 | ||||||||||
Net income (loss) before taxes | 6,420 | (7,254) | [1] | (1,025) | ||||||||||
Income tax expense (benefit) | 1,900 | 577 | [1] | 158 | ||||||||||
Net income (loss) | $ 6,642 | $ 13,250 | $ (191,182) | $ (3,656) | $ 2,582 | $ 42,563 | $ (4,526) | $ 15,036 | (174,946) | 55,655 | [1],[3] | 19,916 | [3] | |
Martin Transport Inc. Stock Purchase Agreement | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Operating expenses | 105,212 | 104,304 | ||||||||||||
Selling, general and administrative | 5,246 | 4,449 | ||||||||||||
Depreciation and amortization | 3,413 | 2,284 | ||||||||||||
Total costs and expenses | 113,871 | 111,037 | ||||||||||||
Other operating income, net | 596 | 1,491 | ||||||||||||
Operating income | 12,058 | 2,581 | ||||||||||||
Interest expense | (312) | (26) | ||||||||||||
Other, net | 12 | 33 | ||||||||||||
Net income (loss) before taxes | 11,758 | 2,588 | ||||||||||||
Income tax expense (benefit) | 208 | (193) | ||||||||||||
Net income (loss) | 11,550 | 2,781 | ||||||||||||
Transportation revenue | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Revenues | [2] | 159,622 | 150,121 | [1] | $ 135,350 | |||||||||
Transportation revenue | Martin Transport Inc. Stock Purchase Agreement | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Revenues | $ 125,333 | $ 112,127 | ||||||||||||
[1] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. | |||||||||||||
[2] | *Related Party Transactions Included Above Year Ended December 31, 2019 2018 1 2017 1 Revenues: Terminalling and storage $ 71,733 $ 79,137 $ 82,142 Transportation 24,243 27,588 29,807 Natural gas liquids — — 122 Product sales 931 1,297 3,497 Costs and expenses: Cost of products sold: (excluding depreciation and amortization) Natural gas liquids — — 4,354 Sulfur services 10,765 10,641 9,345 Terminalling and storage 23,859 24,613 16,672 Expenses: Operating expenses 88,194 90,878 95,546 Selling, general and administrative 32,622 26,441 26,393 | |||||||||||||
[3] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. |
Acquisitions - Purchase Price T
Acquisitions - Purchase Price True - up (Details) - USD ($) $ in Thousands | Jan. 02, 2019 | Feb. 22, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | [1] | |
Business Acquisition [Line Items] | |||||||
Excess purchase price over carrying value of acquired assets | $ (102,393) | $ (26) | |||||
Excess purchase price over carrying value of acquired assets | $ 102,393 | $ 26 | [1] | $ 7,887 | |||
MEH South Texas Terminals LLC | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price | $ 27,420 | ||||||
Excess purchase price over carrying value of acquired assets | 26 | ||||||
Historical carrying value of assets allocated to Property, plant and equipment | 19,533 | ||||||
Excess purchase price over carrying value of acquired assets | $ 102,393 | $ 7,913 | |||||
[1] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. |
Discontinued Operations, Dive_3
Discontinued Operations, Divestitures, and Assets Held for Sale - Narrative (Details) $ in Thousands, ft³ in Billions | Aug. 12, 2019USD ($) | Jul. 31, 2018USD ($)mi | Dec. 31, 2017USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 28, 2019USD ($)ft³ |
Disposal Group, Held-for-sale, Not Discontinued Operations | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Proceeds from divestiture of businesses | $ 1,002 | $ 8,341 | |||||
Gain (loss) from divestiture | $ (1,022) | $ 822 | |||||
East Texas Pipeline | Discontinued Operations, Disposed of by Sale | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Proceeds from sale of assets | $ 17,500 | ||||||
Gain on disposition | $ 16,154 | ||||||
Natural Gas Storage Assets | Discontinued Operations, Disposed of by Sale | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Proceeds from sale of assets | $ 210,067 | ||||||
Gain on disposition | $ 178,781 | ||||||
Natural gas storage (in cubic feet) | ft³ | 50 | ||||||
WTLPG | Discontinued Operations, Disposed of by Sale | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Ownership percentage | 20.00% | ||||||
Length common carrier pipeline (in miles) | mi | 2,300 | ||||||
Proceeds from sale of equity method investments | $ 193,705 | ||||||
Terminalling and storage | Disposal Group, Held-for-sale, Not Discontinued Operations | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Impairment of long-lived assets | $ 600 | ||||||
Transportation revenue | Disposal Group, Held-for-sale, Not Discontinued Operations | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Impairment of long-lived assets | $ 1,625 |
Discontinued Operations, Dive_4
Discontinued Operations, Divestitures, and Assets Held for Sale - Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Income from discontinued operations, net of income taxes | $ 0 | $ 0 | $ (180,568) | $ 1,102 | $ 1,029 | $ 50,443 | $ 4,927 | $ 7,087 | $ (179,466) | $ 63,486 | [1],[2] | $ 21,099 | [1],[2] |
Natural Gas Storage Assets | Discontinued Operations, Disposed of by Sale | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Total revenues | 22,836 | 52,108 | 59,360 | ||||||||||
Total costs and expenses and other, net, excluding depreciation and amortization | (15,360) | (20,703) | (19,940) | ||||||||||
Depreciation and amortization | (8,161) | (18,795) | (22,370) | ||||||||||
Other operating loss, net | (178,781) | (824) | (82) | ||||||||||
Other, net | 0 | 0 | 3 | ||||||||||
Income (loss) from discontinued operations before income taxes | (179,466) | 11,786 | 16,971 | ||||||||||
Income tax expense | 0 | 0 | 0 | ||||||||||
Income from discontinued operations, net of income taxes | (179,466) | 11,786 | 16,971 | ||||||||||
Gain on disposition | 178,781 | ||||||||||||
WTLPG | Discontinued Operations, Disposed of by Sale | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Total costs and expenses and other, net, excluding depreciation and amortization | 0 | (247) | (186) | ||||||||||
Other operating income | 0 | 48,564 | 0 | ||||||||||
Equity in earnings | 0 | 3,383 | 4,314 | ||||||||||
Income (loss) from discontinued operations before income taxes | 0 | 51,700 | 4,128 | ||||||||||
Income tax expense | 0 | 0 | 0 | ||||||||||
Income from discontinued operations, net of income taxes | $ 0 | $ 51,700 | $ 4,128 | ||||||||||
[1] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. | ||||||||||||
[2] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. |
Discontinued Operations, Dive_5
Discontinued Operations, Divestitures, and Assets Held for Sale - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Current assets - Natural Gas Storage Assets | $ 0 | $ 9,428 | [1] |
Non-current assets - Natural Gas Storage Assets | 0 | 395,389 | [1] |
Current liabilities - Natural Gas Storage Assets | 0 | 3,240 | [1] |
Non-current liabilities - Natural Gas Storage Assets | $ 0 | 669 | [1] |
Discontinued Operations, Disposed of by Sale | Natural Gas Storage Assets | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Accounts and other receivables | 7,269 | ||
Inventories | 1,942 | ||
Other current assets | 217 | ||
Current assets - Natural Gas Storage Assets | 9,428 | ||
Property, plant and equipment, at cost | 425,138 | ||
Accumulated depreciation | (49,238) | ||
Intangibles and other assets, net | 19,489 | ||
Non-current assets - Natural Gas Storage Assets | 395,389 | ||
Trade and other accounts payable | 1,682 | ||
Product exchange payable | 1,134 | ||
Due to affiliates | 2 | ||
Other accrued liabilities | 422 | ||
Current liabilities - Natural Gas Storage Assets | 3,240 | ||
Other long-term obligations | 669 | ||
Non-current liabilities - Natural Gas Storage Assets | $ 669 | ||
[1] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. |
Discontinued Operations, Dive_6
Discontinued Operations, Divestitures, and Assets Held for Sale - Long-Lived Assets Held-for-Sale (Details) - Disposal Group, Held-for-sale, Not Discontinued Operations - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Long lived assets held-for-sale fair value disclosure | $ 5,052 | $ 5,652 |
Terminalling and storage | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Long lived assets held-for-sale fair value disclosure | 3,552 | 3,552 |
Transportation revenue | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Long lived assets held-for-sale fair value disclosure | $ 1,500 | $ 2,100 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Disaggregation of Revenue [Line Items] | ||||||||||||||
Revenues | $ 241,862 | $ 177,900 | $ 187,323 | $ 240,033 | $ 267,175 | $ 234,047 | $ 227,164 | $ 291,718 | $ 847,118 | $ 1,020,104 | [1] | $ 973,386 | [1] | |
Lubricant product sales | ||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||
Revenues | [2] | 122,257 | 145,236 | [1] | 130,392 | [1] | ||||||||
Throughput and storage | ||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||
Revenues | [2] | 87,397 | 96,204 | [1] | 99,643 | [1] | ||||||||
Sulfur services | ||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||
Revenues | 11,434 | 11,148 | [1] | 10,952 | [1] | |||||||||
Natural gas liquids product sales | ||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||
Revenues | [2] | 366,502 | 496,007 | [1] | 473,317 | [1] | ||||||||
Terminalling and storage segment | ||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||
Revenues | 209,654 | 241,440 | 230,035 | |||||||||||
Terminalling and storage segment | Lubricant product sales | ||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||
Revenues | 122,257 | 145,236 | 130,392 | |||||||||||
Terminalling and storage segment | Throughput and storage | ||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||
Revenues | 87,397 | 96,204 | 99,643 | |||||||||||
Transportation segment | ||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||
Revenues | 159,622 | 150,121 | 135,350 | |||||||||||
Transportation segment | Land transportation | ||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||
Revenues | 98,895 | 99,751 | 86,771 | |||||||||||
Transportation segment | Inland transportation | ||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||
Revenues | 54,834 | 44,580 | 42,874 | |||||||||||
Transportation segment | Offshore transportation | ||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||
Revenues | 5,893 | 5,790 | 5,705 | |||||||||||
Sulfur service segment | ||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||
Revenues | 111,340 | 132,536 | 134,684 | |||||||||||
Sulfur service segment | Sulfur product sales | ||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||
Revenues | 30,135 | 46,347 | 49,204 | |||||||||||
Sulfur service segment | Fertilizer product sales | ||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||
Revenues | 69,771 | 75,041 | 74,528 | |||||||||||
Sulfur service segment | Sulfur services | ||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||
Revenues | 11,434 | 11,148 | 10,952 | |||||||||||
Natural gas liquids segment | ||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||
Revenues | 366,502 | 496,007 | 473,317 | |||||||||||
Natural gas liquids segment | Natural gas liquids product sales | ||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||
Revenues | $ 366,502 | $ 496,007 | $ 473,317 | |||||||||||
[1] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. | |||||||||||||
[2] | *Related Party Transactions Included Above Year Ended December 31, 2019 2018 1 2017 1 Revenues: Terminalling and storage $ 71,733 $ 79,137 $ 82,142 Transportation 24,243 27,588 29,807 Natural gas liquids — — 122 Product sales 931 1,297 3,497 Costs and expenses: Cost of products sold: (excluding depreciation and amortization) Natural gas liquids — — 4,354 Sulfur services 10,765 10,641 9,345 Terminalling and storage 23,859 24,613 16,672 Expenses: Operating expenses 88,194 90,878 95,546 Selling, general and administrative 32,622 26,441 26,393 |
Revenue - Estimated Revenue Exp
Revenue - Estimated Revenue Expected to be Recognized in Future (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 54,303 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | Throughput and storage | Terminalling and storage | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 49,405 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | Sulfur product sales | Sulfur services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 4,898 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 47,875 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | Throughput and storage | Terminalling and storage | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 46,694 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | Sulfur product sales | Sulfur services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 1,181 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 43,030 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Throughput and storage | Terminalling and storage | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 42,735 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Sulfur product sales | Sulfur services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 295 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 42,854 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Throughput and storage | Terminalling and storage | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 42,854 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Sulfur product sales | Sulfur services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 0 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 44,197 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Throughput and storage | Terminalling and storage | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 44,197 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Sulfur product sales | Sulfur services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 0 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 348,427 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Throughput and storage | Terminalling and storage | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 348,427 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Sulfur product sales | Sulfur services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 0 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 580,686 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | Throughput and storage | Terminalling and storage | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | 574,312 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | Sulfur product sales | Sulfur services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 6,374 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |||
Natural gas liquids | $ 19,097 | $ 30,446 | |
Sulfur | 4,586 | 12,818 | |
Fertilizer | 15,852 | 14,208 | |
Lubricants | 18,925 | 22,887 | |
Other | 4,080 | 3,906 | |
Inventories | $ 62,540 | $ 84,265 | [1] |
[1] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, at cost (Note 8) | $ 884,728 | $ 886,435 | [1] | |
Depreciation expense | 53,856 | 58,615 | $ 61,590 | |
Amortization of right-of-use assets | 2,686 | |||
Capital leases, amortization expense | 1,174 | 139 | ||
Gross assets under capital leases | 15,367 | |||
Gross assets under capital leases | 14,058 | |||
Capital leases, accumulated depreciation | 3,941 | |||
Capital leases, accumulated amortization | 1,266 | |||
Additions to property, plant and equipment included in accounts payable | 3,791 | 2,166 | ||
Capital leased assets, additions | 1,308 | |||
Capital leased assets, additions | 10,472 | $ 3,551 | ||
Land | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, at cost (Note 8) | 22,083 | 22,204 | ||
Improvements to land and buildings | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, at cost (Note 8) | $ 135,666 | $ 134,783 | ||
Improvements to land and buildings | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciable lives (in years) | 10 years | 10 years | ||
Improvements to land and buildings | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciable lives (in years) | 25 years | 25 years | ||
Storage equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, at cost (Note 8) | $ 120,788 | $ 120,005 | ||
Storage equipment | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciable lives (in years) | 5 years | 5 years | ||
Storage equipment | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciable lives (in years) | 50 years | 50 years | ||
Marine vessels | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, at cost (Note 8) | $ 182,115 | $ 191,070 | ||
Marine vessels | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciable lives (in years) | 4 years | 4 years | ||
Marine vessels | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciable lives (in years) | 25 years | 25 years | ||
Operating plant and equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, at cost (Note 8) | $ 343,236 | $ 352,235 | ||
Operating plant and equipment | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciable lives (in years) | 3 years | 3 years | ||
Operating plant and equipment | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciable lives (in years) | 50 years | 50 years | ||
Furniture, fixtures and other equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, at cost (Note 8) | $ 12,896 | $ 12,119 | ||
Furniture, fixtures and other equipment | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciable lives (in years) | 3 years | 3 years | ||
Furniture, fixtures and other equipment | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciable lives (in years) | 20 years | 20 years | ||
Transportation equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, at cost (Note 8) | $ 47,525 | $ 40,582 | ||
Transportation equipment | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciable lives (in years) | 3 years | 3 years | ||
Transportation equipment | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciable lives (in years) | 7 years | 7 years | ||
Construction in progress | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, at cost (Note 8) | $ 20,419 | $ 13,437 | ||
[1] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Line Items] | |||
Carrying amount of goodwill | $ 17,705 | $ 17,785 | [1] |
Terminalling and storage | |||
Goodwill [Line Items] | |||
Carrying amount of goodwill | 11,867 | 11,868 | |
Natural gas liquids | |||
Goodwill [Line Items] | |||
Carrying amount of goodwill | 0 | 79 | |
Sulfur services | |||
Goodwill [Line Items] | |||
Carrying amount of goodwill | 5,349 | 5,349 | |
Transportation revenue | |||
Goodwill [Line Items] | |||
Carrying amount of goodwill | $ 489 | $ 489 | |
[1] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | ||
Lessee, Lease, Description [Line Items] | |||||
Assets | $ 667,156 | $ 1,073,628 | [1] | ||
Liabilities | $ 703,352 | 785,196 | [1] | ||
Termination period | 1 year | ||||
Lease not yet commenced, expense | $ 4,085 | ||||
Lease not yet commenced, term | 3 years | ||||
Operating lease, rent expense | $ 26,606 | $ 30,911 | |||
Non-cancelable revenue arrangements, future minimum revenues, 2020 | $ 19,358 | ||||
Non-cancelable revenue arrangements, future minimum revenues, 2021 | 14,019 | ||||
Non-cancelable revenue arrangements, future minimum revenues, 2022 | 13,004 | ||||
Non-cancelable revenue arrangements, future minimum revenues, 2023 | 12,609 | ||||
Non-cancelable revenue arrangements, future minimum revenues, 2024 | 12,609 | ||||
Non-cancelable revenue arrangements, future minimum revenues, subsequent years | $ 49,414 | ||||
Accounting Standards Update 2016-02 | |||||
Lessee, Lease, Description [Line Items] | |||||
Assets | $ 25,552 | ||||
Liabilities | $ 25,552 | ||||
Minimum | |||||
Lessee, Lease, Description [Line Items] | |||||
Remaining lease term | 1 year | ||||
Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Remaining lease term | 17 years | ||||
Renewal term | 5 years | ||||
[1] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 10,897 |
Finance lease cost: | |
Amortization of right-of-use assets | 2,686 |
Interest on lease liabilities | 671 |
Short-term lease cost | 13,756 |
Total lease cost | $ 28,010 |
Leases - Cash Flow Information
Leases - Cash Flow Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 24,526 |
Operating cash flows from finance leases | 671 |
Financing cash flows from finance leases | 5,517 |
Right-of-use assets obtained in exchange for lease obligations: | |
Operating leases | 9,122 |
Finance leases | $ 1,309 |
Leases - Balance Sheet Informat
Leases - Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | [1] |
Operating Leases | |||
Operating lease right-of-use assets | $ 23,901 | $ 0 | |
Current portion of operating lease liabilities included in Other accrued liabilities | 7,722 | ||
Operating lease liabilities | 16,656 | 0 | |
Total operating lease liabilities | 24,378 | ||
Finance Leases | |||
Property, plant and equipment, at cost | 15,367 | ||
Accumulated depreciation | (3,941) | ||
Property, plant and equipment, net | 11,426 | ||
Current installments of finance lease obligations | 6,758 | 5,409 | |
Finance lease obligations | 717 | $ 6,272 | |
Total finance lease obligations | $ 7,475 | ||
Weighted Average Remaining Lease Term (years) | |||
Operating leases | 6 years 3 months 3 days | ||
Finance leases | 11 months 19 days | ||
Weighted Average Discount Rate | |||
Operating leases | 5.27% | ||
Finance leases | 6.83% | ||
[1] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. |
Leases - Future Minimum Lease O
Leases - Future Minimum Lease Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Leases | ||
Year 1 | $ 8,755 | |
Year 2 | 5,999 | |
Year 3 | 3,586 | |
Year 4 | 2,280 | |
Year 5 | 1,306 | |
Thereafter | 6,809 | |
Total | 28,735 | |
Less amounts representing interest costs | (4,357) | |
Total lease liability | 24,378 | |
Finance Leases | ||
Year 1 | 7,049 | |
Year 2 | 489 | |
Year 3 | 260 | |
Year 4 | 0 | |
Year 5 | 0 | |
Thereafter | 0 | |
Total | 7,798 | |
Less amounts representing interest costs | (323) | |
Total lease liability | $ 7,475 | |
Operating Leases | ||
Year 1 | $ 13,126 | |
Year 2 | 7,194 | |
Year 3 | 4,262 | |
Year 4 | 2,642 | |
Year 5 | 1,749 | |
Thereafter | 7,823 | |
Total | 36,796 | |
Finance Leases | ||
Year 1 | 6,022 | |
Year 2 | 6,068 | |
Year 3 | 223 | |
Year 4 | 260 | |
Year 5 | 0 | |
Thereafter | 0 | |
Total | 12,573 | |
Less amounts representing interest costs | (892) | |
Present value of net minimum capital lease payments | 11,681 | |
Less current portion | (5,409) | |
Present value of net minimum capital lease payments, excluding current portion | $ 6,272 |
Investments in WTLPG - Narrativ
Investments in WTLPG - Narrative (Details) - mi | Dec. 31, 2019 | Jul. 31, 2018 |
West Texas LPG Pipeline L.P. | ||
Schedule of Equity Method Investments [Line Items] | ||
Length common carrier pipeline (in miles) | 2,300 | |
West Texas LPG Pipeline L.P. | Common | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 19.80% | |
West Texas LPG Pipeline L.P. | General Partner | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 0.20% | |
West Texas LPG Pipeline L.P. | Discontinued Operations, Disposed of by Sale | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 20.00% | |
Length common carrier pipeline (in miles) | 2,300 |
Investments in WTLPG - Informat
Investments in WTLPG - Information for Significant Unconsolidated Equity Method Investees (Details) - WTLPG - USD ($) $ in Thousands | 7 Months Ended | 12 Months Ended |
Jul. 31, 2018 | Dec. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | ||
Total Assets | $ 928,349 | $ 837,163 |
Long-Term Debt | 0 | 0 |
Members’ Equity/Partners' Capital | 868,894 | 787,426 |
Revenues | 55,534 | 87,048 |
Net Income | $ 16,642 | $ 21,571 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Nonrecurring | Carrying Value | 2021 Senior unsecured notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior notes | $ 373,374 | $ 372,996 |
Nonrecurring | Fair Value | 2021 Senior unsecured notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior notes | 343,470 | 360,138 |
Commodity contracts | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodity derivative contracts, net | $ (667) | |
Commodity derivative contracts, net | $ 4 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Narrative (Details) - bbl | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Commodity derivative contracts, net | ||
Derivative [Line Items] | ||
Notional quantity (in bbl) | 452 | 55 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Balance Sheet Derivatives (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | $ 0 | $ 4 |
Derivative liability, fair value | 667 | 0 |
Commodity derivative contracts, net | Fair Value of Derivatives, Current | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 0 | 4 |
Derivative liability, fair value | $ 667 | $ 0 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Effect of derivative instruments on the Consolidated Statement of Operations (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Gain) or Loss Recognized in Income on Derivatives | $ 5,137 | $ (14,024) | $ 1,304 |
Commodity contracts | Cost of products sold | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Gain) or Loss Recognized in Income on Derivatives | $ 5,137 | $ (14,024) | $ 1,304 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) | 12 Months Ended |
Dec. 31, 2019shares | |
Martin Resource Management | |
Related Party Transaction [Line Items] | |
Number of shares owned (in shares) | 6,114,532 |
Ownership percentage | 15.70% |
Martin Resource Management | Martin Resource Management | MMGP | |
Related Party Transaction [Line Items] | |
General partner interest percentage | 51.00% |
MMGP | |
Related Party Transaction [Line Items] | |
General partner interest percentage | 2.00% |
MMGP | Martin Resource Management | |
Related Party Transaction [Line Items] | |
General partner interest percentage | 2.00% |
Related Party Transactions - Om
Related Party Transactions - Omnibus Agreement Narrative (Details) - Omnibus Agreement - Martin Resource Management - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Noncompete restriction threshold | $ 5,000,000 | ||
Noncompete restriction ownership option opportunity threshold minimum | 5,000,000 | ||
Noncompete restriction ownership option opportunity threshold minimum with equity limitation | $ 5,000,000 | ||
Equity limitation on ownership restriction percentage | 20.00% | ||
Approved Annual Reimbursements For Indirect Expenses | $ 16,657,000 | ||
Indirect expenses reimbursed | $ 16,657,000 | $ 16,416,000 | $ 16,416,000 |
Related Party Transactions - Mo
Related Party Transactions - Motor Carrier Agreement (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Motor Carrier Agreement | Martin Resource Management | |
Related Party Transaction [Line Items] | |
Minimum term of written notice (in days) | 30 days |
Related Party Transactions - Ma
Related Party Transactions - Marine Agreements (Details) - Marine Transportation Agreement - Martin Resource Management | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |
Automatic consecutive term renewal (in years) | 1 year |
Minimum term of written notice (in days) | 60 days |
Related Party Transactions - Te
Related Party Transactions - Terminal Services Agreements (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Terminal Services Agreements | Martin Resource Management | |
Related Party Transaction [Line Items] | |
Minimum term of written notice (in days) | 60 days |
Related Party Transactions - Ot
Related Party Transactions - Other Agreements (Details) - Martin Resource Management $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)bbl_per_day | |
Cross Tolling Agreement | ||
Related Party Transaction [Line Items] | ||
Production minimum per day (in bbl) | bbl_per_day | 6,500 | |
Capital recovery fee reimbursement, expired | $ 2,088 | |
Annual escalation benchmark percentage | 3.00% | |
Sulfuric Acid Sales Agency Agreement | ||
Related Party Transaction [Line Items] | ||
Partnership notice period to terminate agreement (in days) | 90 days | |
Scenario, Forecast | Cross Tolling Agreement | ||
Related Party Transaction [Line Items] | ||
Capital recovery fee reimbursement, expired | $ 2,586 | |
Annual revenue decrease from contract expiration | $ 2,145 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of the impact of Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Related Party Transaction [Line Items] | ||||||
Cost of products sold | $ 492,795 | $ 659,306 | [1] | $ 594,675 | [1] | |
Operating expenses: | ||||||
Operating expenses | 88,194 | 90,878 | [2] | 95,546 | [2] | |
Related Party | ||||||
Revenues: | ||||||
Revenue from related parties | 96,907 | 108,022 | 115,568 | |||
Cost of products sold: | ||||||
Costs of products sold | 34,624 | 35,254 | 30,371 | |||
Operating expenses: | ||||||
Operating expenses | 88,194 | 90,878 | 95,546 | |||
Selling, general and administrative: | ||||||
Selling, general and administrative | 32,622 | 26,441 | 26,393 | |||
Related Party | Terminalling and storage | ||||||
Operating expenses: | ||||||
Operating expenses | 18,562 | 18,753 | 22,196 | |||
Related Party | Natural gas liquids | ||||||
Operating expenses: | ||||||
Operating expenses | 3,446 | 3,779 | 4,042 | |||
Related Party | Sulfur services | ||||||
Operating expenses: | ||||||
Operating expenses | 4,810 | 5,381 | 5,821 | |||
Throughput and storage | Related Party | Terminalling and storage | ||||||
Revenues: | ||||||
Revenue from related parties | 71,733 | 79,137 | 82,142 | |||
Transportation revenue | Related Party | ||||||
Related Party Transaction [Line Items] | ||||||
Cost of products sold | 61,376 | 62,965 | 63,487 | |||
Transportation revenue | Related Party | Transportation revenue | ||||||
Revenues: | ||||||
Revenue from related parties | 24,243 | 27,588 | 29,807 | |||
Natural gas storage | Related Party | Natural gas liquids | ||||||
Revenues: | ||||||
Revenue from related parties | 0 | 0 | 122 | |||
Product sales | Related Party | ||||||
Revenues: | ||||||
Revenue from related parties | 931 | 1,297 | 3,497 | |||
Natural gas liquids | ||||||
Related Party Transaction [Line Items] | ||||||
Cost of products sold | [3] | 325,376 | 449,103 | [1] | 406,388 | [1] |
Natural gas liquids | Related Party | ||||||
Related Party Transaction [Line Items] | ||||||
Cost of products sold | 0 | 0 | [2] | 4,354 | [2] | |
Natural gas liquids | Related Party | Natural gas liquids | ||||||
Revenues: | ||||||
Revenue from related parties | 0 | 0 | 1,037 | |||
Cost of products sold: | ||||||
Costs of products sold | 0 | 0 | 4,354 | |||
Sulfur services | ||||||
Related Party Transaction [Line Items] | ||||||
Cost of products sold | [3] | 65,893 | 83,641 | [1] | 76,119 | [1] |
Sulfur services | Related Party | ||||||
Related Party Transaction [Line Items] | ||||||
Cost of products sold | 10,765 | 10,641 | [2] | 9,345 | [2] | |
Sulfur services | Related Party | Sulfur services | ||||||
Revenues: | ||||||
Revenue from related parties | 54 | 630 | 1,963 | |||
Cost of products sold: | ||||||
Costs of products sold | 10,765 | 10,641 | 9,345 | |||
Terminalling and storage | ||||||
Related Party Transaction [Line Items] | ||||||
Cost of products sold | [3] | 101,526 | 126,562 | [1] | 112,168 | [1] |
Terminalling and storage | Related Party | ||||||
Related Party Transaction [Line Items] | ||||||
Cost of products sold | 23,859 | 24,613 | [2] | 16,672 | [2] | |
Terminalling and storage | Related Party | Terminalling and storage | ||||||
Revenues: | ||||||
Revenue from related parties | 877 | 667 | 497 | |||
Cost of products sold: | ||||||
Costs of products sold | 23,859 | 24,613 | 16,672 | |||
Operating Revenues | Related Party | Terminalling and storage | ||||||
Selling, general and administrative: | ||||||
Selling, general and administrative | 3,083 | 2,766 | 2,179 | |||
Operating Revenues | Related Party | Transportation revenue | ||||||
Selling, general and administrative: | ||||||
Selling, general and administrative | 7,107 | 1,606 | 35 | |||
Operating Revenues | Related Party | Natural gas liquids | ||||||
Selling, general and administrative: | ||||||
Selling, general and administrative | 2,804 | 2,942 | 5,237 | |||
Operating Revenues | Related Party | Sulfur services | ||||||
Selling, general and administrative: | ||||||
Selling, general and administrative | 2,850 | 2,684 | 2,526 | |||
Indirect overhead allocation, net of reimbursement | Related Party | ||||||
Selling, general and administrative: | ||||||
Selling, general and administrative | $ 16,778 | $ 16,443 | $ 16,416 | |||
[1] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. | |||||
[2] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. | |||||
[3] | *Related Party Transactions Included Above Year Ended December 31, 2019 2018 1 2017 1 Revenues: Terminalling and storage $ 71,733 $ 79,137 $ 82,142 Transportation 24,243 27,588 29,807 Natural gas liquids — — 122 Product sales 931 1,297 3,497 Costs and expenses: Cost of products sold: (excluding depreciation and amortization) Natural gas liquids — — 4,354 Sulfur services 10,765 10,641 9,345 Terminalling and storage 23,859 24,613 16,672 Expenses: Operating expenses 88,194 90,878 95,546 Selling, general and administrative 32,622 26,441 26,393 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information - Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Balance Sheet Related Disclosures [Abstract] | ||
Catalyst and turnaround costs | $ 1,655 | $ 926 |
Other intangible assets | 936 | 1,310 |
Other | 976 | 2,348 |
Intangible and other assets, net | $ 3,567 | $ 4,584 |
Supplemental Balance Sheet In_4
Supplemental Balance Sheet Information - Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |||
Amortization of intangible assets | $ 5,797 | $ 2,353 | $ 3,114 |
Accumulated amortization | 6,519 | $ 5,907 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2020 | 4,893 | ||
2021 | 1,080 | ||
2022 | 892 | ||
2023 | 214 | ||
2024 | 29 | ||
Subsequent years | $ 26 |
Supplemental Balance Sheet In_5
Supplemental Balance Sheet Information - Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |||
Accrued interest | $ 10,761 | $ 10,735 | |
Asset retirement obligations | 25 | 2,721 | |
Property and other taxes payable | 5,411 | 5,751 | |
Accrued payroll | 3,011 | 3,110 | |
Operating lease liabilities | 7,722 | ||
Other | 1,859 | 2,063 | |
Total other accrued liabilities | $ 28,789 | $ 24,380 | [1] |
[1] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. |
Supplemental Balance Sheet In_6
Supplemental Balance Sheet Information - Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Beginning asset retirement obligations | $ 12,429 | $ 13,512 |
Revisions to existing liabilities | 0 | 4,041 |
Accretion expense | 407 | 516 |
Liabilities settled | (3,900) | (5,640) |
Ending asset retirement obligations | 8,936 | 12,429 |
Current portion of asset retirement obligations | (25) | (2,721) |
Long-term portion of asset retirement obligations | $ 8,911 | $ 9,708 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) | 12 Months Ended | |||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jul. 18, 2019 | Jul. 17, 2019 | Dec. 31, 2015 | Apr. 30, 2014 | Feb. 28, 2013 | |
Debt Instrument [Line Items] | ||||||||
Total long-term debt | $ 569,788,000 | $ 656,459,000 | ||||||
Cash paid for interest | 48,025,000 | 50,543,000 | $ 45,728,000 | |||||
Capitalized interest | 5,000 | 624,000 | $ 730,000 | |||||
Revolving Loan Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Total long-term debt | 196,414,000 | 283,463,000 | ||||||
Face amount | 400,000,000 | $ 400,000,000 | $ 500,000,000 | |||||
Unamortized debt issuance costs | $ 4,586,000 | 3,537,000 | ||||||
Weighted average interest rate | 5.26% | |||||||
Revolving Loan Facility | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Applicable margins | 3.50% | |||||||
Revolving Loan Facility | Minimum | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Applicable margins | 2.25% | |||||||
Revolving Loan Facility | Minimum | Prime Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Applicable margins | 1.25% | |||||||
Revolving Loan Facility | Maximum | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Applicable margins | 3.50% | |||||||
Revolving Loan Facility | Maximum | Prime Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Applicable margins | 2.50% | |||||||
Senior Notes | Senior Notes 7.250% | ||||||||
Debt Instrument [Line Items] | ||||||||
Total long-term debt | $ 373,374,000 | 372,996,000 | ||||||
Face amount | $ 400,000,000 | $ 150,000,000 | $ 250,000,000 | |||||
Fixed rate cost | 7.25% | |||||||
Unamortized debt issuance costs | $ 770,000 | 1,454,000 | ||||||
Unamortized premium | $ 344,000 | $ 650,000 | ||||||
Amount of debt repurchased | $ 26,200,000 |
Partners' Capital (Deficit) - N
Partners' Capital (Deficit) - Narrative (Details) | 12 Months Ended |
Dec. 31, 2019shares | |
Limited Partners' Capital Account [Line Items] | |
Common limited partner units (in shares) | 38,863,389 |
Ownership percentage | 98.00% |
Martin Resource Management | |
Limited Partners' Capital Account [Line Items] | |
Common limited partner units (in shares) | 6,114,532 |
Ownership percentage | 15.70% |
MMGP | |
Limited Partners' Capital Account [Line Items] | |
General partner interest percentage | 2.00% |
MMGP | Martin Resource Management | |
Limited Partners' Capital Account [Line Items] | |
General partner interest percentage | 2.00% |
Partners' Capital (Deficit) - I
Partners' Capital (Deficit) - Issuance of Common Units (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 22, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | [1] | Dec. 31, 2017 | [1] |
Limited Partners' Capital Account [Line Items] | ||||||
Units issued in public offering (in shares) | 2,990,000 | |||||
Share price (in dollars per share) | $ 18 | |||||
Proceeds from issuance of common units | $ 51,056 | |||||
General partner contribution to maintain GP interest | $ 1,098 | $ 0 | $ 0 | $ 1,098 | ||
MMGP | ||||||
Limited Partners' Capital Account [Line Items] | ||||||
General partner interest percentage | 2.00% | |||||
MMGP | Martin Resource Management | ||||||
Limited Partners' Capital Account [Line Items] | ||||||
General partner interest percentage | 2.00% | |||||
[1] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. |
Partners' Capital (Deficit) -_2
Partners' Capital (Deficit) - Incentive Distribution Rights (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Martin Midstream GP LLC | |||
Limited Partners' Capital Account [Line Items] | |||
Distributions payable on behalf of IDRs | $ 0 | $ 0 | $ 0 |
Martin Midstream GP LLC | Target Level 1 | |||
Limited Partners' Capital Account [Line Items] | |||
Target cash distribution (in dollars per share) | $ 0.55 | ||
Martin Midstream GP LLC | Target Level 2 | |||
Limited Partners' Capital Account [Line Items] | |||
Target cash distribution, percent | 15.00% | ||
Target cash distribution (in dollars per share) | $ 0.625 | ||
Martin Midstream GP LLC | Target Level 3 | |||
Limited Partners' Capital Account [Line Items] | |||
Target cash distribution, percent | 25.00% | ||
Target cash distribution (in dollars per share) | $ 0.75 | ||
Martin Midstream GP LLC | Target Level 4 | |||
Limited Partners' Capital Account [Line Items] | |||
Target cash distribution, percent | 50.00% | ||
MMGP | |||
Limited Partners' Capital Account [Line Items] | |||
General partner interest percentage | 2.00% | ||
MMGP | Martin Midstream GP LLC | |||
Limited Partners' Capital Account [Line Items] | |||
General partner interest percentage | 2.00% | ||
MMGP | Martin Midstream GP LLC | Target Level 1 | |||
Limited Partners' Capital Account [Line Items] | |||
Target cash distribution, percent | 2.00% | ||
Maximum | Martin Midstream GP LLC | Target Level 1 | |||
Limited Partners' Capital Account [Line Items] | |||
Target cash distribution (in dollars per share) | $ 0.55 |
Partners' Capital (Deficit) - D
Partners' Capital (Deficit) - Distributions of Available Cash (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Distribution period (in days) | 45 days |
Partners' Capital (Deficit) - R
Partners' Capital (Deficit) - Reconciliation of net income to partners interest in net income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Reconciliation of Net Income from Continuing and Discontinued Operations [Line Items] | |||||||||||||
Income from continuing operations | $ 6,642 | $ 13,250 | $ (10,614) | $ (4,758) | $ 1,553 | $ (7,880) | $ (9,453) | $ 7,949 | $ 4,520 | $ (7,831) | [1],[2] | $ (1,183) | [1],[2] |
Less pre-acquisition income allocated to Parent | 0 | 11,550 | [2] | 2,781 | [2] | ||||||||
Income from discontinued operations | $ 0 | $ 0 | $ (180,568) | $ 1,102 | $ 1,029 | $ 50,443 | $ 4,927 | $ 7,087 | (179,466) | 63,486 | [1],[2] | 21,099 | [1],[2] |
Less general partner’s interest in net income: | |||||||||||||
Less income allocable to unvested restricted units | (41) | (28) | [2] | (42) | [2] | ||||||||
Limited partner's interest in net income | $ (171,488) | $ 43,195 | [2],[3] | $ 16,750 | [2],[3] | ||||||||
Basic weighted average limited partner units outstanding (in shares) | 38,658,881 | 38,907,000 | [3] | 38,101,583 | [3] | ||||||||
Dilutive effect of restricted units issued (in shares) | 0 | 15,678 | 63,318 | ||||||||||
Total weighted average limited partner diluted units outstanding (in shares) | 38,658,881 | 38,922,678 | [3] | 38,164,901 | [3] | ||||||||
Continuing operations: | |||||||||||||
Reconciliation of Net Income from Continuing and Discontinued Operations [Line Items] | |||||||||||||
Income from continuing operations | $ 4,520 | $ (7,831) | $ (1,183) | ||||||||||
Less pre-acquisition income allocated to Parent | 0 | (11,550) | (2,781) | ||||||||||
Less general partner’s interest in net income: | |||||||||||||
Distributions payable on behalf of IDRs | 0 | 0 | 0 | ||||||||||
Distributions payable on behalf of general partner interest | (20) | (689) | (363) | ||||||||||
Distributions Payable To The General Partner Interest In Excess Of Earnings Allocable To The General Partner Interest | 111 | 302 | 284 | ||||||||||
Less income allocable to unvested restricted units | (1) | (12) | (10) | ||||||||||
Limited partner's interest in net income | 4,430 | (18,982) | (3,875) | ||||||||||
Discontinued operations: | |||||||||||||
Reconciliation of Net Income from Continuing and Discontinued Operations [Line Items] | |||||||||||||
Income from discontinued operations | (179,466) | 63,486 | 21,099 | ||||||||||
Less general partner’s interest in net income: | |||||||||||||
Distributions payable on behalf of IDRs | 0 | 0 | 0 | ||||||||||
Distributions payable on behalf of general partner interest | 806 | 2,258 | 1,932 | ||||||||||
Distributions Payable To The General Partner Interest In Excess Of Earnings Allocable To The General Partner Interest | (4,396) | (989) | (1,510) | ||||||||||
Less income allocable to unvested restricted units | 42 | 40 | 52 | ||||||||||
Limited partner's interest in net income | $ (175,918) | $ 62,177 | $ 20,625 | ||||||||||
[1] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. | ||||||||||||
[2] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. | ||||||||||||
[3] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. |
Unit Based Awards - Schedule of
Unit Based Awards - Schedule of compensation costs relate to unit based plan (Details) - Selling, General and Administrative Expense - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 1,424 | $ 1,224 | $ 650 |
Employees | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | 1,226 | 1,098 | 534 |
Non-employee directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 198 | $ 126 | $ 116 |
Unit Based Awards - Narrative (
Unit Based Awards - Narrative (Details) $ in Thousands | Jan. 24, 2023shares | Jan. 24, 2022shares | Jan. 24, 2021shares | Jan. 24, 2020shares | Feb. 11, 2019directorshares | Mar. 01, 2018shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018 | May 26, 2017shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares authorized (in shares) | 3,000,000 | ||||||||
Time Based Restricted Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period (in years) | 3 years | ||||||||
Issuance of performance-based restricted units (in shares) | 16,944 | ||||||||
Number of directors receiving grants | director | 3 | ||||||||
Compensation costs not yet recognized | $ | $ 1,753 | ||||||||
Weighted average period for recognition (in years) | 1 year 6 months | ||||||||
Time Based Restricted Units | Non-employee directors | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Issuance of performance-based restricted units (in shares) | 5,648 | ||||||||
Time Based Restricted Units | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Issuance of performance-based restricted units (in shares) | 301,550 | ||||||||
Restricted Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of units vested (in shares) | 107,762 | ||||||||
Restricted Units | Non-employee directors | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period (in years) | 4 years | ||||||||
Restricted Units | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period (in years) | 3 years | ||||||||
Performance Based Restricted Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period (in years) | 3 years | ||||||||
Performance Based Restricted Units | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Issuance of performance-based restricted units (in shares) | 317,925 | ||||||||
Scenario, Forecast | Time Based Restricted Units | Non-employee directors | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of units vested (in shares) | 1,412 | 1,412 | 1,412 | ||||||
Subsequent Event | Time Based Restricted Units | Non-employee directors | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of units vested (in shares) | 1,412 |
Unit Based Awards - Summary of
Unit Based Awards - Summary of restricted unit activity (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Restricted Units | |
Number of Units | |
Non-vested, beginning of period, numbers of units (in shares) | shares | 624,125 |
Vested, number of units (in shares) | shares | (107,762) |
Forfeited, number of units (in shares) | shares | (154,288) |
Non-vested, end of period, number of units (in shares) | shares | 379,019 |
Weighted Average Grant-Date Fair Value Per Unit | |
Non-vested, beginning of period, weighted average grant-date fair value per unit (in dollars per share) | $ / shares | $ 13.78 |
Vested, weighted average grant-date fair value per unit (in dollars per share) | $ / shares | 13.82 |
Forfeited, weighted average grant-date fair value per unit (in dollars per share) | $ / shares | 13.90 |
Non-vested, end of period, weighted average grant-date fair value per unit (in dollars per share) | $ / shares | $ 13.91 |
Aggregate intrinsic value, end of period | $ | $ 1,527 |
Time Based Restricted Units | |
Number of Units | |
Issuance of performance-based restricted units (in shares) | shares | 16,944 |
Weighted Average Grant-Date Fair Value Per Unit | |
Granted, weighted average grant-date fair value per unit (in dollars per share) | $ / shares | $ 12.45 |
Unit Based Awards - Summary o_2
Unit Based Awards - Summary of aggregate intrinsic value and fair value of units vested (Details) - Restricted Units - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate intrinsic value of units vested | $ 1,351 | $ 1,195 | $ 143 |
Fair value of units vested | $ 1,551 | $ 2,250 | $ 208 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Current: | |||||
Federal | $ 174 | $ 0 | $ 0 | ||
State | 366 | 369 | 314 | ||
Total current income tax expense | 540 | 369 | 314 | ||
Deferred: | |||||
Federal | 882 | 0 | 0 | ||
State | 478 | 208 | (156) | ||
Total deferred income tax expense (benefit) | 1,360 | 208 | [1] | (156) | [1] |
Total income tax expense | $ 1,900 | $ 577 | [2] | $ 158 | [2] |
[1] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. | ||||
[2] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Operating Loss Carryforwards [Line Items] | |||||
Income tax expense (benefit) | $ 1,900 | $ 577 | [1] | $ 158 | [1] |
Cash paid for income taxes | 515 | 431 | 799 | ||
Income taxes payable | 472 | 445 | [2] | ||
Difference between partnership's tax basis and reported amounts | 78,649 | (121,775) | |||
State | |||||
Operating Loss Carryforwards [Line Items] | |||||
Income taxes payable | 298 | 445 | |||
Texas | |||||
Operating Loss Carryforwards [Line Items] | |||||
State income taxes | 458 | 369 | 352 | ||
MTI | |||||
Operating Loss Carryforwards [Line Items] | |||||
State income taxes | 0 | $ (38) | |||
Income tax expense (benefit) | 1,442 | ||||
Net operating loss carryforwards | 73,801 | ||||
Net operating loss carryforwards, subject to expiration | 14,080 | ||||
Net operating loss carryforwards, not subject to expiration | 59,721 | ||||
MTI | State | |||||
Operating Loss Carryforwards [Line Items] | |||||
Income taxes refundable | 117 | 127 | |||
MTI | Federal | |||||
Operating Loss Carryforwards [Line Items] | |||||
Income taxes payable | $ 174 | $ 0 | |||
[1] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. | ||||
[2] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. |
Income Taxes - Income Tax Recon
Income Taxes - Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | [1] | Dec. 31, 2017 | [1] | |
Increase in income taxes resulting from: | |||||
Total income tax expense | $ 1,900 | $ 577 | $ 158 | ||
MTI | |||||
Operating Loss Carryforwards [Line Items] | |||||
Expected tax expense | 1,116 | ||||
Increase in income taxes resulting from: | |||||
State income taxes, net of federal income tax expense | 235 | ||||
Other non-deductible items | 19 | ||||
Other, net | 72 | ||||
Total income tax expense | $ 1,442 | ||||
[1] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Bad debt reserves | $ 64,000 | $ 0 |
Goodwill and intangibles | 15,245,000 | 0 |
Employee benefits | 500,000 | 0 |
Interest expense | 658,000 | 0 |
Tax loss carryforwards | 12,879,000 | 0 |
Other | 147,000 | 0 |
Total deferred tax assets | 29,493,000 | 0 |
Deferred tax liabilities: | ||
Property and equipment | (6,069,000) | 0 |
Operating leases | (2,000) | 0 |
Other | 0 | 0 |
Total deferred tax liabilities | (6,071,000) | 0 |
Net deferred tax assets | $ 23,422,000 | $ 0 |
Business Segments (Details)
Business Segments (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | ||||
Segment Reporting Information [Line Items] | ||||||||||||||
Number of reporting units | segment | 4 | |||||||||||||
Revenues | $ 241,862 | $ 177,900 | $ 187,323 | $ 240,033 | $ 267,175 | $ 234,047 | $ 227,164 | $ 291,718 | $ 847,118 | $ 1,020,104 | [1] | $ 973,386 | [1] | |
Depreciation and Amortization | 60,060 | 61,484 | [1],[2] | 65,108 | [1],[2] | |||||||||
Operating Income (Loss) after Eliminations | 18,027 | $ 25,461 | $ 5,010 | $ 9,606 | 14,309 | $ 5,431 | $ 4,489 | $ 20,828 | 58,104 | 45,057 | [1] | 45,616 | [1] | |
Capital Expenditures and Plant Turnaround Costs | 37,923 | 35,214 | 45,797 | |||||||||||
Total Assets [Abstract] | ||||||||||||||
Total assets | 667,156 | 1,073,628 | [3] | 667,156 | 1,073,628 | [3] | ||||||||
Operating Revenues | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 877,895 | 1,054,565 | 1,008,444 | |||||||||||
Intersegment Eliminations | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | (30,777) | (34,461) | (35,058) | |||||||||||
Indirect selling, general, and administrative | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Depreciation and Amortization | 0 | 0 | 0 | |||||||||||
Operating Income (Loss) after Eliminations | (17,981) | (17,901) | (17,332) | |||||||||||
Capital Expenditures and Plant Turnaround Costs | 0 | 0 | 0 | |||||||||||
Terminalling and storage | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 209,654 | 241,440 | 230,035 | |||||||||||
Depreciation and Amortization | 30,952 | 39,508 | 45,160 | |||||||||||
Operating Income (Loss) after Eliminations | 16,732 | 17,540 | 629 | |||||||||||
Capital Expenditures and Plant Turnaround Costs | 12,987 | 13,704 | 29,644 | |||||||||||
Total Assets [Abstract] | ||||||||||||||
Total assets | 292,136 | 298,784 | 292,136 | 298,784 | ||||||||||
Terminalling and storage | Operating Revenues | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 216,313 | 247,840 | 236,169 | |||||||||||
Terminalling and storage | Intersegment Eliminations | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | (6,659) | (6,400) | (6,134) | |||||||||||
Natural gas liquids | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 366,502 | 496,007 | 473,317 | |||||||||||
Depreciation and Amortization | 2,469 | 2,488 | 2,546 | |||||||||||
Operating Income (Loss) after Eliminations | 44,020 | 31,581 | 34,880 | |||||||||||
Capital Expenditures and Plant Turnaround Costs | 1,870 | 746 | 555 | |||||||||||
Total Assets [Abstract] | ||||||||||||||
Total assets | 94,195 | 512,817 | 94,195 | 512,817 | ||||||||||
Natural gas liquids | Operating Revenues | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 366,502 | 496,026 | 473,548 | |||||||||||
Natural gas liquids | Intersegment Eliminations | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 0 | (19) | (231) | |||||||||||
Sulfur services | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 111,340 | 132,536 | 134,684 | |||||||||||
Depreciation and Amortization | 11,332 | 8,485 | 8,117 | |||||||||||
Operating Income (Loss) after Eliminations | 22,721 | 27,397 | 23,205 | |||||||||||
Capital Expenditures and Plant Turnaround Costs | 14,853 | 4,429 | 2,611 | |||||||||||
Total Assets [Abstract] | ||||||||||||||
Total assets | 110,780 | 115,498 | 110,780 | 115,498 | ||||||||||
Sulfur services | Operating Revenues | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 111,340 | 132,536 | 134,684 | |||||||||||
Sulfur services | Intersegment Eliminations | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 0 | 0 | 0 | |||||||||||
Transportation revenue | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 159,622 | 150,121 | 135,350 | |||||||||||
Depreciation and Amortization | 15,307 | 11,003 | 9,285 | |||||||||||
Operating Income (Loss) after Eliminations | (7,388) | (13,560) | 4,234 | |||||||||||
Capital Expenditures and Plant Turnaround Costs | 8,213 | 16,335 | 12,987 | |||||||||||
Total Assets [Abstract] | ||||||||||||||
Total assets | $ 170,045 | $ 146,529 | 170,045 | 146,529 | ||||||||||
Transportation revenue | Operating Revenues | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 183,740 | 178,163 | 164,043 | |||||||||||
Transportation revenue | Intersegment Eliminations | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | (24,118) | (28,042) | (28,693) | |||||||||||
One customers | Natural gas liquids | Revenue | Customer concentration risk | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | $ 112,280 | $ 148,103 | $ 114,874 | |||||||||||
[1] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. | |||||||||||||
[2] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. | |||||||||||||
[3] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. |
Quarterly Financial Informati_3
Quarterly Financial Information (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2019USD ($)$ / shares$ / unit | Sep. 30, 2019USD ($)$ / shares$ / unit | Jun. 30, 2019USD ($)$ / shares$ / unit | Mar. 31, 2019USD ($)$ / shares$ / unit | Dec. 31, 2018USD ($)$ / shares$ / unit | Sep. 30, 2018USD ($)$ / shares$ / unit | Jun. 30, 2018USD ($)$ / shares$ / unit | Mar. 31, 2018USD ($)$ / shares$ / unit | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($)$ / shares | |||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||
Revenues | $ 241,862 | $ 177,900 | $ 187,323 | $ 240,033 | $ 267,175 | $ 234,047 | $ 227,164 | $ 291,718 | $ 847,118 | $ 1,020,104 | [1] | $ 973,386 | [1] |
Operating income | 18,027 | 25,461 | 5,010 | 9,606 | 14,309 | 5,431 | 4,489 | 20,828 | 58,104 | 45,057 | [1] | 45,616 | [1] |
Income (loss) from continuing operations | 6,642 | 13,250 | (10,614) | (4,758) | 1,553 | (7,880) | (9,453) | 7,949 | 4,520 | (7,831) | [1],[2] | (1,183) | [1],[2] |
Income (loss) from discontinued operations | 0 | 0 | (180,568) | 1,102 | 1,029 | 50,443 | 4,927 | 7,087 | (179,466) | 63,486 | [1],[2] | 21,099 | [1],[2] |
Net income (loss) | $ 6,642 | $ 13,250 | $ (191,182) | $ (3,656) | $ 2,582 | $ 42,563 | $ (4,526) | $ 15,036 | $ (174,946) | $ 55,655 | [1],[2] | $ 19,916 | [1],[2] |
Income (loss) from continuing operations per unit ( in dollars per share) | $ / shares | $ 0.17 | $ 0.34 | $ (0.27) | $ (0.12) | $ 0.04 | $ (0.20) | $ (0.24) | $ 0.21 | $ 0.11 | $ (0.49) | [3] | $ (0.10) | [3] |
Limited partners' interest in net income (loss) per limited partner unit ( in dollars per unit) | $ / unit | 0.14 | 0.33 | (4.82) | (0.09) | (0.04) | 1 | (0.18) | 0.33 | |||||
[1] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. | ||||||||||||
[2] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. | ||||||||||||
[3] | Financial information has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 2 – Significant Accounting Policies and Practices. |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event | Jan. 28, 2020$ / shares |
Subsequent Event [Line Items] | |
Dividends declared (in dollars per share) | $ 0.0625 |
Annualized dividends declared (in dollars per share) | $ 0.25 |