Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 12, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Calumet Specialty Products Partners, L.P. | |
Entity Central Index Key | 0001340122 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 77,560,355 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Current assets: | |||||||
Cash and cash equivalents | $ 164.2 | $ 155.7 | $ 65.5 | $ 514.3 | |||
Accounts receivable, net: | |||||||
Trade | 216 | 177.7 | |||||
Other | 24.7 | 20.3 | |||||
Total accounts receivable | 240.7 | 198 | |||||
Inventories | 293.3 | 284.1 | |||||
Derivative assets | 0.8 | 18.3 | |||||
Prepaid expenses and other current assets | 11.5 | 13.9 | |||||
Total current assets | 710.5 | 670 | |||||
Property, plant and equipment, net | 1,050.1 | 1,098.1 | |||||
Investment in unconsolidated affiliates | 5.7 | 25.4 | |||||
Goodwill | 171.4 | 171.4 | |||||
Other intangible assets, net | 75.4 | 88 | |||||
Operating lease right-of-use assets | 110.5 | [1] | 0 | ||||
Other noncurrent assets, net | 37.7 | 34.6 | |||||
Total assets | 2,161.3 | 2,087.5 | |||||
Current liabilities: | |||||||
Accounts payable | 270.2 | 200.6 | |||||
Accrued interest payable | 40.9 | 30.7 | |||||
Accrued salaries, wages and benefits | 31.9 | 25.7 | |||||
Other taxes payable | 21.2 | 15.2 | |||||
Obligations under inventory financing agreements | 117 | 105.3 | |||||
Other current liabilities | 70.4 | 33.8 | |||||
Current portion of operating leases | 62.3 | [1] | 0 | ||||
Current portion of long-term debt | 123.5 | 3.8 | |||||
Total current liabilities | 737.4 | 415.1 | |||||
Pension and postretirement benefit obligations | 4.5 | 4.5 | |||||
Other long-term liabilities | 1.5 | 1.5 | |||||
Long-term operating lease liabilities | 48.9 | [1] | 0 | ||||
Long-term debt, less current portion | 1,306.2 | 1,600.7 | |||||
Total liabilities | 2,098.5 | 2,021.8 | |||||
Partners’ capital: | |||||||
Limited partners’ interest 77,556,190 units and 77,177,159 units issued and outstanding as of September 30, 2019 and December 31, 2018, respectively | 57.5 | 61.6 | |||||
General partner’s interest | 12.8 | 12.8 | |||||
Accumulated other comprehensive loss | (7.5) | (8.7) | |||||
Total partners’ capital | 62.8 | $ 67.1 | 65.7 | 51.2 | $ 66.6 | 119.9 | |
Total liabilities and partners’ capital | 2,161.3 | 2,087.5 | |||||
Limited Partner | |||||||
Partners’ capital: | |||||||
Total partners’ capital | 57.5 | $ 61.7 | 61.6 | $ 43.2 | $ 58.9 | $ 113.3 | |
Consolidated Entities [Member] | |||||||
Current assets: | |||||||
Cash and cash equivalents | 0 | $ 0 | |||||
Accounts receivable, net: | |||||||
Total accounts receivable | 0 | ||||||
Inventories | 0 | ||||||
Prepaid expenses and other current assets | 0 | ||||||
Total current assets | 0 | ||||||
Property, plant and equipment, net | 0 | ||||||
Other noncurrent assets, net | 0 | ||||||
Total assets | 0 | ||||||
Current liabilities: | |||||||
Accounts payable | 0 | ||||||
Current portion of long-term debt | 0 | ||||||
Total current liabilities | 0 | ||||||
Other long-term liabilities | 0 | ||||||
Long-term debt, less current portion | 0 | ||||||
Total liabilities | 0 | ||||||
Partners’ capital: | |||||||
Total partners’ capital | 0 | ||||||
Total liabilities and partners’ capital | $ 0 | ||||||
[1] | (2) In the third quarter of 2019, the Company had additions to its operating lease right of use assets and operating lease liabilities of approximately $2.7 million. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - Limited Partner - shares | Sep. 30, 2019 | Dec. 31, 2018 |
Limited partners’ interest units issued (in shares) | 77,556,190 | 77,177,159 |
Limited Partners' Capital Account, Units Outstanding | 77,556,190 | 77,177,159 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Sales | $ 929.6 | $ 2,677.8 | ||
Cost of sales | 811.8 | 2,316.9 | ||
Gross profit | 117.8 | $ 103.3 | 360.9 | $ 335.8 |
Operating costs and expenses: | ||||
Selling | 12.6 | 12.2 | 40.2 | 39.6 |
General and administrative | 32.8 | 29.2 | 105.5 | 95.5 |
Transportation | 28.4 | 36.4 | 95.9 | 99.7 |
Taxes other than income taxes | 5.7 | 5.9 | 15.5 | 13.2 |
Loss on impairment and disposal of assets | 3.2 | 0 | 31.1 | 0 |
Operating Expenses | 1.7 | 0.8 | ||
Other operating income | (2) | (18.7) | ||
Operating income | 33.4 | 21.6 | 71.9 | 106.5 |
Other income (expense): | ||||
Interest expense | (33.8) | (37.7) | (99.2) | (120.4) |
Gain (Loss) from debt extinguishment | 0 | 0 | 0.7 | (58.8) |
Gain (loss) on derivative instruments | (5) | (2.7) | 14.4 | (2) |
Other | (1.3) | (3.2) | (7.9) | (5.6) |
Total other expense | (37.5) | (37.2) | (76.2) | (175.6) |
Net loss from continuing operations before income taxes | (4.1) | (15.6) | (4.3) | (69.1) |
Income tax expense from continuing operations | 0.5 | 0.4 | 0.7 | 1 |
Net loss from continuing operations | (4.6) | (16) | (5) | (70.1) |
Net loss from discontinued operations, net of tax | 0 | (0.5) | 0 | (3.1) |
Net loss | (4.6) | (16.5) | (5) | (73.2) |
Less: | ||||
General partner’s interest in net loss | (0.1) | (0.4) | (0.1) | (1.5) |
Net loss available to limited partners | $ (4.5) | $ (16.1) | $ (4.9) | $ (71.7) |
Weighted average limited partner units outstanding: | ||||
Basic and Diluted | 78,299,472 | 77,783,879 | 78,174,976 | 77,643,006 |
Limited partners' interest basic net income (loss) per unit [Abstract] | ||||
From continuing operations | $ (0.06) | $ (0.20) | $ (0.06) | $ (0.88) |
From discontinued operations | 0 | (0.01) | 0 | (0.04) |
Limited partners’ interest | (0.06) | (0.21) | (0.06) | (0.92) |
Limited partners' interest diluted net income (loss) per unit | ||||
From continuing operations | (0.06) | (0.20) | (0.06) | (0.88) |
From discontinued operations | 0 | (0.01) | 0 | (0.04) |
Limited partners' interest | $ (0.06) | $ (0.21) | $ (0.06) | $ (0.92) |
Oil and Gas, Refining and Marketing [Member] | ||||
Sales | $ 929.6 | $ 953.5 | $ 2,677.8 | $ 2,649.5 |
Cost of sales | $ 850.2 | $ 2,313.7 | ||
Consolidated Entities [Member] | ||||
Sales | 0 | 0 | ||
Cost of sales | 0 | 0 | ||
Gross profit | 0 | 0 | ||
Operating costs and expenses: | ||||
Loss on impairment and disposal of assets | 0 | 0 | ||
Other operating income | 0 | 0 | ||
Operating income | 0 | 0 | ||
Other income (expense): | ||||
Interest expense | 0 | 0 | ||
Net loss from continuing operations before income taxes | 0 | 0 | ||
Income tax expense from continuing operations | 0 | 0 | ||
Net loss from continuing operations | $ 0 | $ 0 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net loss | $ (4.6) | $ (16.5) | $ (5) | $ (73.2) |
Cash flow hedge loss reclassified to net loss | 0 | (0.7) | 0 | (2.8) |
Defined Benefit pension and retiree health benefit plans | 0 | 0 | 0 | 0.1 |
Foreign currency translation adjustment | 0 | 0 | 1.2 | 0 |
Total other comprehensive income | 0 | 0.7 | 1.2 | 2.9 |
Comprehensive loss attributable to partners’ capital | $ (4.6) | $ (15.8) | $ (3.8) | $ (70.3) |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Partners' Capital - USD ($) $ in Millions | Total | General Partner | Limited Partners | Accumulated Other Comprehensive Loss |
Beginning of Period at Dec. 31, 2017 | $ 119.9 | $ 13.8 | $ 113.3 | $ (7.2) |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Other comprehensive income | 2.9 | 0 | 0 | 2.9 |
Net loss | (73.2) | (1.5) | (71.7) | 0 |
Amortization of phantom units | 2.8 | 0 | 2.8 | 0 |
Settlement of tax withholdings on equity-based incentive compensation | (1.2) | 0 | 1.2 | 0 |
End of Period at Sep. 30, 2018 | 51.2 | 12.3 | 43.2 | (4.3) |
Beginning of Period at Jun. 30, 2018 | 66.6 | 12.7 | 58.9 | (5) |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Other comprehensive income | 0.7 | 0 | 0 | 0.7 |
Net loss | (16.5) | (0.4) | (16.1) | 0 |
Amortization of phantom units | 0.7 | 0 | 0.7 | 0 |
Settlement of tax withholdings on equity-based incentive compensation | (0.3) | 0 | 0.3 | 0 |
End of Period at Sep. 30, 2018 | 51.2 | 12.3 | 43.2 | (4.3) |
Beginning of Period at Dec. 31, 2018 | 65.7 | 12.8 | 61.6 | (8.7) |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Other comprehensive income | 1.2 | 0 | 0 | 1.2 |
Net loss | (5) | (0.1) | (4.9) | 0 |
Amortization of phantom units | 1.3 | 0 | 1.3 | 0 |
Settlement of tax withholdings on equity-based incentive compensation | (0.5) | 0 | (0.5) | 0 |
Contributions from Calumet GP, LLC | 0.1 | 0.1 | 0 | 0 |
End of Period at Sep. 30, 2019 | 62.8 | 12.8 | 57.5 | (7.5) |
Beginning of Period at Jun. 30, 2019 | 67.1 | 12.9 | 61.7 | (7.5) |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Other comprehensive income | 0 | |||
Net loss | (4.6) | (0.1) | (4.5) | 0 |
Amortization of phantom units | 0.3 | 0 | 0.3 | 0 |
End of Period at Sep. 30, 2019 | $ 62.8 | $ 12.8 | $ 57.5 | $ (7.5) |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating activities | ||
Net loss | $ (5) | $ (73.2) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Net loss from discontinued operations | 0 | 3.1 |
Depreciation and amortization | 82.6 | 88.8 |
Amortization of turnaround costs | 16.5 | 8.7 |
Non-cash interest expense | 4.9 | 6.1 |
(Gain) loss on debt extinguishment | (0.7) | 58.8 |
Unrealized (gain) loss on derivative instruments | 20.2 | (0.4) |
Equity based compensation | 4.9 | 2.8 |
Lower of cost or market inventory adjustment | (38.8) | (12) |
Loss on impairment and disposal of assets | 31.1 | 0 |
Operating lease expense | 57.1 | 0 |
Operating lease payments | (57.1) | 0 |
Other non-cash activities | (7) | (3) |
Changes in assets and liabilities: | ||
Accounts receivable | (49.8) | 29 |
Inventories | 29.6 | (34.4) |
Prepaid expenses and other current assets | 4.6 | (3.8) |
Derivative activity | (0.4) | (0.4) |
Turnaround costs | (16.8) | (11.1) |
Accounts payable | 61.7 | (32.5) |
Accrued interest payable | 10.8 | (7) |
Accrued salaries, wages and benefits | 2.6 | (4.5) |
Other taxes payable | 6 | 8.5 |
Other liabilities | (3.1) | (52.7) |
Increase (Decrease) in Obligation, Pension and Other Postretirement Benefits | 0 | (0.1) |
Net cash provided by (used in) operating activities | 153.9 | (29.3) |
Investing activities | ||
Additions to property, plant and equipment | (27.4) | (41.3) |
Investment in unconsolidated affiliate | 0 | (3.8) |
Proceeds from sale of unconsolidated affiliate | 5 | 9.9 |
Proceeds from sale of business, net | 0 | 44.8 |
Proceeds from sale of property, plant and equipment | 3.7 | 0.3 |
Net cash provided by discontinued investing activities | 5 | 3.6 |
Net cash provided by (used in) investing activities | (13.7) | 13.5 |
Net Cash Provided by (Used in) Financing Activities [Abstract] | ||
Proceeds from borrowings — revolving credit facility | 0 | 166.8 |
Repayments of borrowings — revolving credit facility | 0 | (166.9) |
Repayments of borrowings — senior notes | 137.3 | 400 |
Payments on finance lease obligations | (0.9) | (2.2) |
Proceeds from inventory financing agreements | 848.7 | 867 |
Payments on inventory financing agreements | (840.7) | (850.6) |
Proceeds from other financing obligations | 0 | 4.6 |
Payments on other financing obligations | (1.6) | (2.3) |
Payments on extinguishment of debt | 0 | 46.6 |
Debt issuance costs | 0 | (2.9) |
Contributions from Calumet GP, LLC | 0.1 | 0.1 |
Net cash used in financing activities | (131.7) | (433) |
Net increase (decrease) in cash and cash equivalents | 8.5 | (448.8) |
Cash and cash equivalents at beginning of period | 155.7 | 514.3 |
Cash and cash equivalents at end of period | 164.2 | 65.5 |
Cash and cash equivalents | 155.7 | 514.3 |
Supplemental disclosure of non-cash investing activities | ||
Non-cash property, plant and equipment additions | 12.3 | $ 1.1 |
Consolidated Entities [Member] | ||
Changes in assets and liabilities: | ||
Net cash provided by (used in) operating activities | 0 | |
Investing activities | ||
Additions to property, plant and equipment | 0 | |
Proceeds from sale of unconsolidated affiliate | 0 | |
Proceeds from sale of property, plant and equipment | 0 | |
Net cash provided by discontinued investing activities | 0 | |
Net cash provided by (used in) investing activities | 0 | |
Net Cash Provided by (Used in) Financing Activities [Abstract] | ||
Repayments of borrowings — senior notes | 0 | |
Payments on other financing obligations | 0 | |
Contributions from Calumet GP, LLC | 0 | |
Net cash used in financing activities | 0 | |
Net increase (decrease) in cash and cash equivalents | 0 | |
Cash and cash equivalents at beginning of period | 0 | |
Cash and cash equivalents at end of period | 0 | |
Cash and cash equivalents | $ 0 |
Description of the Business
Description of the Business | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business | Description of the Business and Presentation of Financial Statements Calumet Specialty Products Partners, L.P. (the “Company”) is a publicly traded Delaware limited partnership listed on the NASDAQ Global Select Market under the ticker symbol “CLMT.” The general partner of the Company is Calumet GP, LLC, a Delaware limited liability company. As of September 30, 2019 , the Company had 77,556,190 limited partner common units and 1,582,779 general partner equivalent units outstanding. The general partner owns 2% of the Company and all of the incentive distribution rights (as defined in the Company’s partnership agreement), while the remaining 98% is owned by limited partners. The general partner employs the Company’s employees and the Company reimburses the general partner for certain of its expenses. The Company is engaged in the production and marketing of crude oil-based specialty products including lubricating oils, white mineral oils, solvents, petrolatums, waxes, and fuel and fuel related products including gasoline, diesel, jet fuel, asphalt and heavy fuel oils. The Company is based in Indianapolis, Indiana and owns specialty and fuel products facilities. The Company owns and leases additional facilities, primarily related to production and marketing of specialty and fuel products, throughout the United States. The unaudited condensed consolidated financial statements of the Company as of September 30, 2019 and for the three and nine months ended September 30, 2019 and 2018 , included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and disclosures normally included in the consolidated financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) in the U.S. have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the following disclosures are adequate to make the information presented not misleading. The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These unaudited condensed consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary to present fairly the results of operations for the interim periods presented. All adjustments are of a normal nature, unless otherwise disclosed. The results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 . These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s 2018 Annual Report. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Reclassifications Certain amounts in the prior years’ unaudited condensed consolidated financial statements have been reclassified to conform to the current year presentation. Other Current Liabilities Other current liabilities consisted of the following (in millions): September 30, 2019 December 31, 2018 RINs Obligation $ 14.4 $ 15.8 Other (1) 56.0 18.0 Total $ 70.4 $ 33.8 (1) Balance as of September 30, 2019 includes $38.1 million related to the reclassification of the present value of the TexStar finance lease obligation in the first quarter of 2019 from current and long-term debt to other current liabilities. See Note 7 - “ Commitments and Contingencies ” for further information. The Company’s Renewable Identification Numbers (“RINs”) obligation (“RINs Obligation”) represents a liability for the purchase of RINs to satisfy the EPA requirement to blend biofuels into the fuel products it produces pursuant to the EPA’s RFS. RINs are assigned to biofuels produced in the U.S. as required by the EPA. The EPA sets annual quotas for the percentage of biofuels that must be blended into transportation fuels consumed in the U.S. and, as a producer of motor fuels from petroleum, the Company is required to blend biofuels into the fuel products it produces at a rate that will meet the EPA’s annual quota. To the extent the Company is unable to blend biofuels at that rate, it must purchase RINs in the open market to satisfy the annual requirement. The Company’s RINs Obligation is based on the amount of RINs it must purchase and the price of those RINs as of the balance sheet date. The Company uses the inventory model to account for RINs, measuring acquired RINs at weighted-average cost. The cost of RINs used each period is charged to cost of sales with cash inflows and outflows recorded in the operating cash flow section of the unaudited condensed consolidated statements of cash flows. The liability is calculated by multiplying the RINs shortage (based on actual results) by the period end RIN spot price. The Company recognizes an asset at the end of each reporting period in which it has generated RINs in excess of its RINs Obligation. The asset is initially recorded at cost at the time the Company acquires them and are subsequently revalued at the lower of cost or market as of the last day of each accounting period and the resulting adjustments are reflected in cost of sales for the period in the unaudited condensed consolidated statements of operations. The value of RINs in excess of the RINs Obligation, if any, would be reflected in other current assets on the condensed consolidated balance sheets. RINs generated in excess of the Company’s current RINs Obligation may be sold or held to offset future RINs Obligations. Any such sales of excess RINs are recorded in cost of sales in the unaudited condensed consolidated statements of operations. The liabilities associated with the Company’s RINs Obligation are considered recurring fair value measurements. See Note 7 - “ Commitments and Contingencies ” for further information on the Company’s RINs Obligation. Adopted Accounting Pronouncements On January 1, 2019, the Company adopted ASU No. 2016-02 , Leases (Topic 842) (“ASU 2016-02”) and all the related amendments to its lease contracts using the modified retrospective method. The effective date was used as the Company’s date of initial application with no restatement of prior periods. As such, prior periods continue to be reported under the accounting standards in effect for those periods. See Note 14 - “ Leases ” for further information. On January 1, 2019, the Company adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which improves the financial reporting of hedging relationships to better align risk management activities in financial statements and make certain targeted improvements to simplify the application of the hedge accounting guidance in current GAAP. Given the Company’s current risk management strategy of not designating any of its derivative positions as hedges, the adoption of this guidance had no effect on our consolidated financial statements. If, in the future, the Company decides to modify its hedging strategies, this new accounting guidance would become applicable and will be applied at that time. On January 1, 2019, the Company adopted ASU No. 2018-07, Compensation — Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”). This update simplifies the guidance related to nonemployee share-based payments by superseding ASC 505-50 and expanding the scope of ASC 718 to include all share-based payment arrangements related to the acquisition of goods and services from both nonemployees and employees. Prior to the issuance of this standard update, nonemployee share-based payments were subject to ASC 505-50 requirements while employee share-based payments were subject to ASC 718 requirements. ASU 2018-07 is effective for fiscal years (including interim periods) beginning after December 15, 2018, with early adoption permitted. The adoption of ASU 2018-07 had no impact on the Company’s condensed consolidated financial statements. |
Revenue Recognition Revenue Rec
Revenue Recognition Revenue Recognition | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The following is a description of principal activities from which the Company generates revenue. Revenues are recognized when control of the promised goods are transferred to the customer, in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods promised within each contract and determines the performance obligations and assesses whether each promised good is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Products The Company is engaged in the production and marketing of crude oil-based specialty products including lubricating oils, white mineral oils, solvents, petrolatums, waxes and other products which comprise the specialty products segment. The Company is also engaged in the production of fuel and fuel related products including gasoline, diesel, jet fuel, asphalt and other products which comprise the fuel products segment. The Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with a customer. For each contract, the Company considers the promise to transfer products, each of which are distinct, to be the identified performance obligations. In determining the transaction price, the Company evaluates whether the price is subject to variable consideration such as product returns, rebates or other discounts to determine the net consideration to which the Company expects to be entitled. The Company transfers control and recognizes revenue upon shipment to the customer or, in certain cases, upon receipt by the customer in accordance with contractual terms. Excise and Sales Taxes The Company assesses, collects and remits excise taxes associated with the sale of certain of its fuel products. Furthermore, the Company collects and remits sales taxes associated with certain sales of its products to non-exempt customers. The Company excludes excise taxes and sales taxes that are collected from customers from the transaction price in its contracts with customers. Accordingly, revenue from contracts with customers is net of sales-based taxes that are collected from customers and remitted to taxing authorities. Shipping and Handling Costs Shipping and handling costs are deemed to be fulfillment activities rather than a separate distinct performance obligation. Cost of Obtaining Contracts The Company may incur incremental costs to obtain a sales contract, which under ASC 606 should be capitalized and amortized over the life of the contract. The Company has elected to apply the practical expedient in ASC 340-40-50-5 allowing the Company to expense these costs since the contracts are short-term in nature with a contract term of one year or less. Disaggregation of Revenue The following table reflects the disaggregation of revenue by major source (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Sales by major source Standard specialty products $ 296.2 $ 285.2 $ 872.2 $ 848.7 Packaged and synthetic specialty products 59.6 64.0 180.2 204.9 Total specialty products $ 355.8 $ 349.2 $ 1,052.4 $ 1,053.6 Fuel and fuel related products $ 508.4 $ 525.9 $ 1,446.3 $ 1,422.2 Asphalt 65.4 78.4 179.1 173.7 Total fuel products $ 573.8 $ 604.3 $ 1,625.4 $ 1,595.9 Total sales $ 929.6 $ 953.5 $ 2,677.8 $ 2,649.5 Revenue is recognized when obligations under the terms of a contract with a customer are satisfied; recognition generally occurs with the transfer of control at a point in time. The contract with the customer states the final terms of the sale, including the description, quantity and price of each product or service purchased. For fuel products, payment is typically due in full between 2 to 30 days of delivery or the start of the contract term, such that payment is typically collected 2 to 30 days subsequent to the satisfaction of performance obligations. For specialty products, payment is typically due in full between 30 to 90 days of delivery or the start of the contract term, such that payment is typically collected 30 to 90 days subsequent to the satisfaction of performance obligations. In the normal course of business, the Company does not accept product returns unless the item is defective as manufactured. The expected costs associated with a product assurance warranty continues to be recognized as expense when products are sold. The Company does not offer promised services that could be considered warranties that are sold separately or provide a service in addition to assurance that the related product complies with agreed upon specifications. The Company establishes provisions based on the methods described in ASC 606 for estimated returns and warranties as variable consideration when determining the transaction price. Contract Balances Under product sales contracts, the Company invoices customers for performance obligations that have been satisfied, at which point payment is unconditional. Accordingly, a product sales contract does not give rise to contract assets or liabilities under ASC 606. The Company’s receivables, net of allowance for doubtful accounts, from contracts with customers as of September 30, 2019 and December 31, 2018 was $216.0 million and $177.7 million , respectively. Transaction Price Allocated to Remaining Performance Obligations The Company’s product sales are short-term in nature with a contract term of one year or less. The Company has utilized the practical expedient in ASC 606-10-50-14 exempting the Company from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less. Additionally, each unit of product generally represents a separate performance obligation; therefore, future volumes are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not required. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The cost of inventory is recorded using the last-in, first-out (“LIFO”) method. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and costs and are subject to the final year-end LIFO inventory valuation. In certain circumstances, the Company may decide not to replenish inventory for certain products or product lines during an interim period, in which case, the Company may record interim LIFO adjustments during that period. During the nine months ended September 30, 2019 , the Company recorded increases (exclusive of lower of cost or market (“LCM”) adjustments) in cost of sales in the unaudited condensed consolidated statements of operations of $0.9 million due to the permanent liquidation of inventory layers. No such activity occurred in the three months ended September 30, 2019 or in the three and nine months ended September 30, 2018 . Costs include crude oil and other feedstocks, labor, processing costs and refining overhead costs. Inventories are valued at the lower of cost or market value. The replacement cost of these inventories, based on current market values, would have been $15.8 million higher and $7.8 million lower as of September 30, 2019 and December 31, 2018 , respectively. On March 31, 2017 and June 19, 2017, the Company sold inventory comprised of crude oil and refined products to Macquarie Energy North America Trading Inc. (“Macquarie”) under Supply and Offtake Agreements as described in Note 8 — “Inventory Financing Agreements” related to the Great Falls and Shreveport refineries, respectively. The crude oil remains in the legal title of Macquarie and is stored in the Company’s refinery storage tanks governed by storage agreements. Legal title to the crude oil passes to the Company at the storage tank outlet for processing into refined products. After processing, Macquarie takes title to the refined products stored in the Company’s storage tanks until sold to third parties. While title to certain inventories will reside with Macquarie, the Supply and Offtake Agreements are accounted for by the Company similar to a product financing arrangement; therefore, the inventories sold to Macquarie will continue to be included in the Company’s condensed consolidated balance sheets until processed and sold to a third party. The Company is obligated to repurchase the inventory in certain scenarios. Inventories consist of the following (in millions): September 30, 2019 December 31, 2018 Titled Inventory Supply and Offtake Agreements (1) Total Titled Inventory Supply and Offtake Agreements (1) Total Raw materials $ 43.9 $ 14.7 $ 58.6 $ 41.8 $ 10.6 $ 52.4 Work in process 37.0 32.7 69.7 40.7 19.2 59.9 Finished goods 112.1 52.9 165.0 127.9 43.9 171.8 $ 193.0 $ 100.3 $ 293.3 $ 210.4 $ 73.7 $ 284.1 (1) Amounts represent LIFO value and do not necessarily represent the value of product financing. Refer to Note 8 - “Inventory Financing Agreements” for further information. Under the LIFO inventory method, the most recently incurred costs are charged to cost of sales and inventories are valued at the earliest acquisition costs. In addition, the use of the LIFO inventory method may result in increases or decreases to cost of sales in years that inventory volumes decline as the result of charging cost of sales with LIFO inventory costs generated in prior periods. In periods of rapidly declining prices, LIFO inventories may have to be written down to market value due to the higher costs assigned to LIFO layers in prior periods. During the three months ended September 30, 2019 and 2018 , the Company realized increases of $2.7 million and $3.0 million , respectively, in cost of sales in the unaudited condensed consolidated statements of operations due to the sale of previously adjusted inventory. During the nine months ended September 30, 2019 and 2018 , the Company realized decreases of $38.8 million and $12.0 million , respectively, in cost of sales in the unaudited condensed consolidated statements of operations due to the sale of previously adjusted inventory. |
Discontinued Operations Discont
Discontinued Operations Discontinued Operations (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued operations [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Discontinued Operations On November 21, 2017, Calumet Operating, LLC, a Delaware limited liability company and a wholly-owned subsidiary of the Company, completed the sale to a subsidiary of Q’Max Solutions Inc. (“Q’Max”) of all of the issued and outstanding membership interests in Anchor Drilling Fluids USA, LLC (“Anchor”), for total consideration of approximately $85.5 million including a base price of $50.0 million , $14.2 million for net working capital and other items and a 10% equity interest in Fluid Holding Corp. (“FHC”), the parent company of Q’Max (the “Anchor Transaction”). Effective in its fourth quarter of 2017, the Company classified its results of operations for all periods presented to reflect Anchor as a discontinued operation and classified the assets and liabilities of Anchor as discontinued operations. Prior to being reported as discontinued operations, Anchor was included as its own reportable segment as oilfield services. As of September 30, 2019 and December 31, 2018 , the Company had a $6.1 million and an $11.1 million receivable, respectively, in other accounts receivable in the condensed consolidated balance sheets for the remaining payment of the base price and working capital. On October 31, 2019 , Q’Max and the Company agreed to restructure the remaining amount of the receivable to be paid with the final payment due on June 30, 2021 . The $6.1 million will be paid with an initial payment of approximately $0.3 million paid upon signing the agreement with subsequent monthly payments beginning December 30, 2019 . In addition to the payments of principal, Q’Max shall pay interest at a rate of 6% per annum. The following table summarizes the results of discontinued operations for the periods presented (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2018 Other (0.5 ) (3.1 ) Net loss from discontinued operations net of income taxes $ (0.5 ) $ (3.1 ) |
Investment in Unconsolidated Af
Investment in Unconsolidated Affiliates | 9 Months Ended |
Sep. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in unconsolidated affiliates | Investment in Unconsolidated Affiliates The following table summarizes the Company’s investments in unconsolidated affiliates (in millions): September 30, 2019 December 31, 2018 Fluid Holding Corp. 5.7 25.4 Total $ 5.7 $ 25.4 Fluid Holding Corp. In connection with the Anchor Transaction in November 2017, the Company received an equity investment in FHC as part of the total consideration for Anchor. FHC provides oilfield services and products to customers globally. The Company’s investment in FHC is a non-marketable equity security without a readily determinable fair value. The Company records this investment using a measurement alternative which values the security at cost less impairment, if any, plus or minus changes resulting from qualifying observable price changes with a same or similar security from the same issuer. During the three months ended June 30, 2019, the Company determined the fair value of its investment in FHC was less than its carrying value of $25.4 million after evaluating indicators of impairment and valuing the investment using projected future cash flows and other Level 3 inputs. Utilizing an income approach, value indications are developed by discounting expected cash flows to their present value at a rate of return that incorporates the risk-free rate for the use of funds, the expected rate of inflation and risks associated with the company. As a result, the Company recorded an impairment charge of $16.1 million in loss on impairment and disposal of assets in the unaudited condensed consolidated statements of operations for the three months ended June 30, 2019. During the three months ended September 30, 2019, the Company determined the fair value of its investment in FHC was less than its carrying value of $9.3 million as a result of a preferred stock issuance by FHC, which diluted the Company’s ownership percentage. As a result, the Company recorded an impairment charge of $3.6 million in loss on impairment and disposal of assets in the unaudited condensed consolidated statements of operations for the three months ended September 30, 2019 and a $19.7 million impairment charge for the nine months ended September 30, 2019. Biosyn Holdings, LLC and Biosynthetic Technologies In February 2018, the Company and The Heritage Group formed Biosyn Holdings, LLC (“Biosyn”) for the purpose of acquiring Biosynthetic Technologies, LLC (“Biosynthetic Technologies”), a startup company which developed an intellectual property portfolio for the manufacture of renewable-based and biodegradable esters. In March 2019, the Company sold its investment in Biosyn to The Heritage Group, a related party, for total proceeds of $5.0 million which was recorded in the “other” component of other income (expense) on the unaudited condensed consolidated statements of operations. Prior to the sale of Biosyn, the Company accounted for its ownership in Biosyn under the equity method of accounting. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies From time to time, the Company is a party to certain claims and litigation incidental to its business, including claims made by various taxation and regulatory authorities, such as the Internal Revenue Service, the EPA and the U.S. Occupational Safety and Health Administration (“OSHA”), as well as various state environmental regulatory bodies and state and local departments of revenue, as the result of audits or reviews of the Company’s business. In addition, the Company has property, business interruption, general liability and various other insurance policies that may result in certain losses or expenditures being reimbursed to the Company. Environmental The Company conducts crude oil and specialty hydrocarbon refining, blending and terminal operations and such activities are subject to stringent federal, regional, state and local laws and regulations governing worker health and safety, the discharge of materials into the environment and environmental protection. These laws and regulations impose obligations that are applicable to the Company’s operations, such as requiring the acquisition of permits to conduct regulated activities, restricting the manner in which the Company may release materials into the environment, requiring remedial activities or capital expenditures to mitigate pollution from former or current operations, requiring the application of specific health and safety criteria addressing worker protection and imposing substantial liabilities for pollution resulting from its operations. Failure to comply with these laws and regulations may result in the assessment of sanctions, including administrative, civil and criminal penalties; the imposition of investigatory, remedial or corrective action obligations or the incurrence of capital expenditures; the occurrence of delays in the permitting, development or expansion of projects and the issuance of injunctive relief limiting or prohibiting Company activities. Moreover, certain of these laws impose joint and several, strict liability for costs required to remediate and restore sites where petroleum hydrocarbons, wastes or other materials have been released or disposed. In addition, new laws and regulations, new interpretations of existing laws and regulations, increased governmental enforcement or other developments, some of which legal requirements are discussed below, could significantly increase the Company’s operational or compliance expenditures. Remediation of subsurface contamination is in process at certain of the Company’s refinery sites and is being overseen by the appropriate state agencies. Based on current investigative and remedial activities, the Company believes that the soil and groundwater contamination at these refineries can be controlled or remediated without having a material adverse effect on the Company’s financial condition. However, such costs are often unpredictable and, therefore, there can be no assurance that the future costs will not become material. Great Falls Refinery In connection with the acquisition of the Great Falls refinery from Connacher Oil and Gas Limited (“Connacher”), the Company became a party to an existing 2002 Refinery Initiative Consent Decree (the “Great Falls Consent Decree”) with the EPA and the Montana Department of Environmental Quality. The material obligations imposed by the Great Falls Consent Decree have been completed. On September 27, 2012, Montana Refining Company, Inc. received a final Corrective Action Order on Consent, replacing the refinery’s previously held hazardous waste permit. This Corrective Action Order on Consent governs the investigation and remediation of contamination at the Great Falls refinery. The Company believes the majority of damages related to such contamination at the Great Falls refinery are covered by a contractual indemnity provided by a subsidiary of HollyFrontier Corporation (the “Seller”), the owner and operator of the Great Falls refinery prior to its acquisition by Connacher, under an asset purchase agreement between the Seller and Connacher, pursuant to which Connacher acquired the Great Falls refinery. Under this asset purchase agreement, the Seller agreed to indemnify Connacher and Montana Refining Company, Inc., subject to timely notification, certain conditions and certain monetary baskets and caps, for environmental conditions arising under the Seller’s ownership and operation of the Great Falls refinery and existing as of the date of sale to Connacher. During 2014, the Seller provided the Company a notice challenging the Company’s position that the Seller is obligated to indemnify the Company’s remediation expenses for environmental conditions to the extent arising under the Seller’s ownership and operation of the refinery and existing as of the date of sale to Connacher, which expenditures totaled in excess of $17.0 million as of September 30, 2019 , of which $14.6 million was capitalized into the cost of the Company’s refinery expansion project and the remainder was expensed. On September 22, 2015, the Company initiated a lawsuit against the Seller. On November 24, 2015, the Seller filed a motion to dismiss the case pending arbitration. On February 10, 2016, the court ordered that all of the claims be addressed in arbitration. The arbitration panel conducted the first phase of the arbitration in July 2018 and issued its ruling on September 13, 2018. In its ruling, the arbitration panel confirmed that the Seller retained the liability for all pre-closing contamination with respect to third-party claims indefinitely and with respect to first party claims for which the Seller received notice within five years after the sale of the refinery, which claims are subject to the requirements otherwise set forth in the asset purchase agreement. The second phase of the arbitration regarding damages occurred in April 2019. The arbitration panel issued its final ruling on August 25, 2019. Among other things, the panel denied the Company’s demands for reimbursement for costs incurred and left open the Company’s ability to make future claims. The Company expects that it may incur costs to remediate other environmental conditions at the Great Falls refinery. The Company currently believes that these other costs it may incur will not be material to its financial position or results of operations. Cotton Valley, Princeton and Shreveport Refineries Since 2013, the Louisiana Depart of Environmental Quality (“LDEQ”) has issued Consolidated Compliance Orders & Notices of Proposed Penalties to the Cotton Valley, Princeton and Shreveport refineries relating to various alleged air quality and wastewater regulatory violations. The Company has responded to the various orders and has submitted a consolidated proposal to the LDEQ to resolve all of the applicable matters and it is likely a resolution of this matter will result in a penalty in excess of $0.1 million . The Company is awaiting a response from LDEQ on the Company’s proposal. The Company expects that the amount of the penalty will not be material to its financial position or results of operations and any conditions established by LDEQ on the Company’s operations will not be material to the Company’s operations. Renewable Identification Numbers Obligation In August 2019, the EPA granted the Company’s fuel products refineries a “small refinery exemption” under the RFS for the compliance year 2018, as provided for under the federal Clean Air Act, as amended (“CAA”). In granting those exemptions, the EPA, in consultation with the Department of Energy, determined that for the compliance year 2018, compliance with the RFS would represent a “disproportionate economic hardship” for these small refineries. In March 2018, the EPA granted the Company’s fuel products refineries a “small refinery exemption” under the RFS for the compliance year 2017, as provided for under the CAA. In granting those exemptions, the EPA, in consultation with the Department of Energy, determined that for the compliance year 2017, compliance with the RFS would represent a “disproportionate economic hardship” for these small refineries. The RINs exemptions resulted in a decrease in the RINs Obligation and are a charge to cost of sales in the unaudited condensed consolidated statements of operations with the exception of the RINs exempted under the RFS for compliance year 2017 related to the Superior Refinery, which was charged to other (income) expense within operating income in the unaudited condensed consolidated statements of operations for the nine months ended September 30, 2018 . As of September 30, 2019 and December 31, 2018 , the Company had a RINs Obligation of $14.4 million and $15.8 million , respectively. Occupational Health and Safety The Company is subject to various laws and regulations relating to occupational health and safety, including the federal Occupational Safety and Health Act, as amended, and comparable state laws. These laws and regulations strictly govern the protection of the health and safety of employees. In addition, OSHA’s hazard communication standard, the EPA’s community right-to-know regulations under Title III of the federal Comprehensive Environmental Response, Compensation and Liability Act, as amended, and similar state statutes require the Company to maintain information about hazardous materials used or produced in the Company’s operations and provide this information to employees, contractors, state and local government authorities and customers. The Company maintains safety and training programs as part of its ongoing efforts to promote compliance with applicable laws and regulations. The Company conducts periodic audits of Process Safety Management systems at each of its locations subject to this standard. The Company’s compliance with applicable health and safety laws and regulations has required, and continues to require, substantial expenditures. Changes in occupational safety and health laws and regulations or a finding of non-compliance with current laws and regulations could result in additional capital expenditures or operating expenses, as well as civil penalties and, in the event of a serious injury or fatality, criminal charges. Labor Matters The Company has employees covered by various collective bargaining agreements. The below facilities ratified their collective bargaining agreements during the nine months ended September 30, 2019 and extended the agreements through the below expiration dates: Facility/ Refinery Union Expiration Date Cotton Valley International Union of Operating Engineers January 15, 2023 Shreveport United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied-Industrial and Service Workers International Union April 30, 2022 Missouri United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied-Industrial and Service Workers International Union April 30, 2022 Great Falls United Steel, Paper and Forestry, Rubber, Manufacturing, Energy Allied-Industrial and Service Workers International Union July 31, 2022 Other Matters, Claims and Legal Proceedings The Company was a party to a 2014 Throughput and Deficiency Agreement with TexStar Midstream Logistics, L.P. (“TexStar”) pursuant to which TexStar delivered crude oil to the Company’s San Antonio refinery through a crude oil pipeline system owned and operated by TexStar (the “Pipeline Agreement”). The Pipeline Agreement had an initial term of 20 years and was accounted for as a finance lease on the Company’s condensed consolidated balance sheets. TexStar and the Company have each terminated the Pipeline Agreement for alleged breaches of the agreement. The Company ceased using the asset as of February 28, 2019, wrote off the associated net book value of $10.7 million in loss on impairment and disposal of assets and reclassified the $38.1 million present value of financing lease obligation from current and long-term debt to other current liabilities on the condensed consolidated balance sheets. The Company is in dispute with TexStar over whether any additional monies are owed with TexStar claiming certain minimum amounts of $0.0 to $0.5 million a month continued to be owed through the remainder of the original term of the Pipeline Agreement. The Company filed a lawsuit against TexStar on May 17, 2019 in Bexar County, Texas, seeking a declaratory judgment that the Company properly terminated the Pipeline Agreement and the Company is not obligated to make further payments under the Pipeline Agreement. The litigation is currently pending. The Company believes it will prevail in the dispute over whether further payments are owed, but pending resolution, the $38.1 million liability is recorded as a current liability on its condensed consolidated balance sheets. On November 10, 2019, the Company, TexStar, and related parties entered into a Settlement and Release Agreement with respect to the litigation. Please see Note 15 - “Subsequent Events” for further information. On October 31, 2018, the Company received an indemnity claim notice (the “Claim Notice”) from Husky Superior Refining Holding Corp. (“Husky”) under the Membership Interest Purchase Agreement, dated August 11, 2017 (the “MIPA”), which was entered into in connection with the disposition of the Superior Refinery. The Claim Notice relates to alleged losses Husky incurred in connection with a fire at the Husky Superior refinery on April 26, 2018, over five months after Calumet sold Husky 100% of the membership interests in the entity that owns the Husky Superior refinery. Calumet understands the fire occurred during a turnaround of the Husky Superior refinery at a time when Husky owned, operated, and supervised the refinery. Calumet was not involved with the turnaround. The U.S. Chemical Safety and Hazard Investigation Board (“CSB”) is currently investigating the fire but has not contacted Calumet in connection with that investigation or suggested that Calumet is responsible for the fire. Husky’s Claim Notice alleges that Husky “has become aware of facts which may give rise to losses” for which it reserved the right to seek indemnification at a later date. The Claim Notice further alleges breaches of certain representations, warranties, and covenants contained in the MIPA. We believe that the information currently publicly available about the fire and the CSB investigation does not support Husky’s threatened claims, and Husky has not filed a lawsuit against Calumet. If Husky were to seek recourse under the MIPA for such claims, they would be subject to certain limits on indemnification liability that may reduce or eliminate any potential indemnification liability. On July 9, 2019 , Calumet Shreveport Refining, LLC entered into a Settlement Agreement and Mutual Release with Enterprise TE Products Pipeline Company LLC and Enterprise Refined Products Company LLC to resolve disputes regarding transportation charges, product downgrades and transmix recovery fee charges, and truck terminal loading charges that arose between the parties under the Transportation Agreement dated July 1, 2015. In July 2019, the final settlement amount actually paid by the Company to Enterprise TE Products Pipeline Company LLC and Enterprise Refined Products Company LLC, collectively, was $3.7 million . On May 4, 2018, the SEC requested that the Company and certain of its executives voluntarily produce certain communications and documents prepared or maintained from January 2017 to May 2018 and generally related to the Company’s finance and accounting staff, financial reporting, public disclosures, accounting policies, disclosure controls and procedures and internal controls. Beginning on July 11, 2018, the SEC issued several subpoenas formally requesting the same documents previously subject to the voluntary production requests by the SEC as well as additional, related documents and information. The SEC has also interviewed and taken testimony from current and former Company employees and other individuals. The Company has, from the outset, cooperated with the SEC’s requests. The Company believes that the investigation is substantially completed, and has executed a formal settlement offer which it expects to resolve the matter, subject to final approval by the SEC Commissioners. The Company currently expects the investigation to conclude in the fourth quarter of 2019 and does not expect the resolution, including any fines or penalties, to have a material adverse effect on the Company’s financial condition or results of operations. The Company is subject to other matters, claims and litigation incidental to its business. The Company has recorded accruals with respect to certain of its matters, claims and litigation where appropriate, that are reflected in the unaudited condensed consolidated financial statements but are not individually considered material. For other matters, claims and litigation, the Company has not recorded accruals because it has not yet determined that a loss is probable or because the amount of loss cannot be reasonably estimated. While the ultimate outcome of matters, claims and litigation currently pending cannot be determined, the Company currently does not expect these outcomes, individually or in the aggregate (including matters for which the Company has recorded accruals), to have a material adverse effect on its financial position, results of operations or cash flows. The outcome of any matter, claim or litigation is inherently uncertain, however and if decided adversely to the Company, or if the Company determines that settlement of particular litigation is appropriate, the Company may be subject to liability that could have a material adverse effect on its financial position, results of operations or cash flows. Transactions with Related Parties On April 18, 2019, the Company entered into a Master Reimbursement Agreement with The Heritage Group whereby The Heritage Group may incur or pay certain fees, expenses or obligations on behalf of the Company, and the Company shall reimburse The Heritage Group for such incurrences or payments in either cash or common units of the Company, subject to a limit of 4.0 million units valued at $3.60 per unit. As of September 30, 2019 , the Company has accrued approximately $2.4 million for expenses incurred by The Heritage Group on behalf of the Company. Standby Letters of Credit The Company has agreements with various financial institutions for standby letters of credit, which have been issued primarily to vendors. As of September 30, 2019 and December 31, 2018 , the Company had outstanding standby letters of credit of $70.1 million and $35.1 million , respectively, under its revolving credit facility. Refer to Note 9 - “ Long-Term Debt ” for additional information regarding the Company’s revolving credit facility. At September 30, 2019 and December 31, 2018 , the maximum amount of letters of credit the Company could issue under its revolving credit facility was subject to borrowing base limitations, with a maximum letter of credit sublimit equal to $300.0 million , which amount may be increased with the consent of the Agent (as defined in the revolving credit facility agreement) to 90% of revolver commitments then in effect ( $600.0 million at September 30, 2019 and December 31, 2018 ). Throughput Contract The Company has entered into a long-term agreement to transport crude oil at a minimum of 5,000 bpd through a pipeline yet to be constructed. The agreement also contains a capital recovery charge that increases 2% per annum. This agreement is for seven years commencing once the pipeline is in service. This agreement was entered into primarily to transport crude to our San Antonio Refinery. Please see Note 15 - “Subsequent Events” for further information. As of September 30, 2019, the estimated minimum unconditional purchase commitments under this agreement were as follows (in millions): Year Commitment 2020 $ 3.6 2021 3.4 2022 3.1 2023 2.9 2024 2.7 Thereafter 4.9 Total $ 20.6 |
Inventory Financing Agreement
Inventory Financing Agreement | 9 Months Ended |
Sep. 30, 2019 | |
Other Commitments [Abstract] | |
Inventory Financing Agreement | Inventory Financing Agreements On March 31, 2017, the Company entered into several agreements with Macquarie to support the operations of the Great Falls refinery (the “Great Falls Supply and Offtake Agreements”). On July 27, 2017, the Company amended the Great Falls Supply and Offtake Agreements to provide Macquarie the option to terminate the Great Falls Supply and Offtake Agreements effective nine months after the end of the applicable calendar quarter in which Macquarie elects to terminate and the Company has the option to terminate with ninety days’ notice at any time. On May 9, 2019, the Company entered into an amendment to the Great Falls Supply and Offtake Agreements to, among other things, extend the Expiration Date (as defined in the Great Falls Supply and Offtake Agreements) from September 30, 2019 to June 30, 2023. On June 19, 2017, the Company entered into several agreements with Macquarie to support the operations of the Shreveport refinery (the “Shreveport Supply and Offtake Agreements” and together with the Great Falls Supply and Offtake Agreements, the “Supply and Offtake Agreements”). Since inception, the Shreveport Supply and Offtake Agreements were set to expire on June 30, 2020; however, Macquarie has the option to terminate the Shreveport Supply and Offtake Agreements effective nine months after the end of the applicable calendar quarter in which Macquarie elects to terminate and the Company has the option to terminate with ninety days’ notice at any time. On May 9, 2019, the Company entered into an amendment to the Shreveport Supply and Offtake Agreements to, among other things, extend the Expiration Date (as defined in the Shreveport Supply and Offtake Agreements) from June 30, 2020 to June 30, 2023. The Supply and Offtake Agreements allow the Company to purchase crude oil from Macquarie or one of its affiliates. Per the Supply and Offtake Agreements, Macquarie will provide up to 30,000 barrels per day of crude oil to the Great Falls refinery and 60,000 barrels per day of crude oil to the Shreveport refinery. The Company agreed to purchase the crude oil on a just-in-time basis to support the production operations at the Great Falls and Shreveport refineries. Additionally, the Company agreed to sell, and Macquarie agreed to buy, at market prices, refined products produced at the Great Falls and Shreveport refineries. For Shreveport, finished products consisting of finished fuel products (other than jet fuel), lubricants and waxes, Macquarie may (but is not required to) sell such products to the sales intermediation party (“SIP”), and the SIP may (but is not required to) sell such products to Shreveport, as applicable, for sale in turn to third parties. For jet fuel and certain intermediate products, Macquarie may (but is not required to) sell such products to Shreveport for sale thereby to third parties. The Company will then repurchase the refined products from Macquarie or the SIP prior to selling the refined products to third parties. The Supply and Offtake Agreements are subject to minimum and maximum inventory levels. The agreements also provide for the lease to Macquarie of crude oil and certain refined product storage tanks located at the Great Falls and Shreveport refineries and certain offsite locations. Following expiration or termination of the agreements, Macquarie has the option to require the Company to purchase the crude oil and refined product inventories then owned by Macquarie and located at the leased storage tanks at then current market prices. In addition, barrels owned by the Company are pledged as collateral to support the Deferred Payment Arrangement (defined below) obligations under these agreements. While title to certain inventories will reside with Macquarie, the Supply and Offtake Agreements are accounted for by the Company similar to a product financing arrangement; therefore, the inventories sold to Macquarie will continue to be included in the Company’s condensed consolidated balance sheets until processed and sold to a third party. Each reporting period, the Company will record liabilities in an amount equal to the amount the Company expects to pay to repurchase the inventory held by Macquarie based on market prices at the termination date included in obligations under inventory financing agreements in the condensed consolidated balance sheets. The Company has determined that the redemption feature on the initially recognized liabilities related to the Supply and Offtake Agreements is an embedded derivative indexed to commodity prices. As such, the Company has accounted for these embedded derivatives at fair value with changes in the fair value, if any, recorded in gain (loss) on derivative instruments in the Company’s unaudited condensed consolidated statements of operations. For more information on the valuation of the associated derivatives, see Note 10 - “ Derivatives ” and Note 11 - “ Fair Value Measurements .” The embedded derivatives will be recorded in obligations under inventory financing agreements on the condensed consolidated balance sheets. The cash flow impact of the embedded derivatives will be classified as a change in inventory financing activity in the financing activities section in the unaudited condensed consolidated statements of cash flows. For the three months ended September 30, 2019 and 2018 , the Company incurred $5.6 million and $6.3 million , respectively, for financing costs related to the Supply and Offtake Agreements, which are included in interest expense in the Company’s unaudited condensed consolidated statements of operations. For the nine months ended September 30, 2019 and 2018 , the Company incurred $11.7 million and $13.4 million , respectively, for financing costs related to the Supply and Offtake Agreements which are included in interest expense in the Company’s unaudited condensed consolidated statements of operations. The Company has provided collateral of $9.7 million related to the initial purchase of the Great Falls and Shreveport inventory to cover credit risk for future crude oil deliveries and potential liquidation risk if Macquarie exercises its rights and sells the inventory to third parties. The collateral was recorded as a reduction to the obligations under inventory financing agreements pursuant to a master netting agreement. The Supply and Offtake Agreements also include a deferred payment arrangement (“Deferred Payment Arrangement”) whereby the Company can defer payments on just-in-time crude oil purchases from Macquarie owed under the agreements up to the value of the collateral provided (up to 90% of the collateral inventory). The deferred amounts under the Deferred Payment Arrangement will bear interest at a rate equal to the London Interbank Offered Rate (“LIBOR”) plus 3.25% per annum for both Shreveport and Great Falls. Amounts outstanding under the Deferred Payment Arrangement are included in obligations under inventory financing agreements in the Company’s condensed consolidated balance sheets. Changes in the amount outstanding under the Deferred Payment Arrangement are included within cash flows from financing activities on the unaudited condensed consolidated statements of cash flows. As of September 30, 2019 and December 31, 2018 , the Company had $22.2 million and $20.4 million deferred payments outstanding, respectively. In addition to the Deferred Payment Arrangement, Macquarie has advanced the Company an additional $5.0 million which remains outstanding as of September 30, 2019 . |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consisted of the following (in millions): September 30, 2019 December 31, 2018 Borrowings under third amended and restated senior secured revolving credit agreement with third-party lenders, interest payments quarterly, borrowings due February 2023, weighted average interest rate of 0.2% and 6.0% for the nine months ended September 30, 2019 and year ended December 31, 2018, respectively. $ — $ — Borrowings under 2021 Notes, interest at a fixed rate of 6.50%, interest payments semiannually, borrowings due April 2021, effective interest rate of 6.8% for each of the nine months ended September 30, 2019 and the year ended December 31, 2018. 761.2 900.0 Borrowings under 2022 Notes, interest at a fixed rate of 7.625%, interest payments semiannually, borrowings due January 2022, effective interest rate of 8.1% and 8.0% for the nine months ended September 30, 2019 and the year ended December 31, 2018, respectively. (1) 351.2 351.6 Borrowings under 2023 Notes, interest at a fixed rate of 7.75%, interest payments semiannually, borrowings due April 2023, effective interest rate of 8.1% and 8.0% for the nine months ended September 30, 2019 and the year ended December 31, 2018, respectively. 325.0 325.0 Other 4.1 5.2 Finance lease obligations, at various interest rates, interest and monthly principal payments (3) 2.8 42.4 Less unamortized debt issuance costs (2) (11.5 ) (15.8 ) Less unamortized discounts (3.1 ) (3.9 ) Total long-term debt $ 1,429.7 $ 1,604.5 Less current portion of long-term debt (4) 123.5 3.8 $ 1,306.2 $ 1,600.7 (1) The balance includes a fair value interest rate hedge adjustment, which increased the debt balance by $1.2 million and $1.6 million as of September 30, 2019 and December 31, 2018 , respectively. (2) Deferred debt issuance costs are being amortized by the effective interest rate method over the lives of the related debt instruments. These amounts are net of accumulated amortization of $27.7 million and $23.5 million at September 30, 2019 and December 31, 2018 , respectively. (3) In the first quarter of 2019, the Company reclassified its TexStar finance lease obligation from debt to other current liabilities on the condensed consolidated balance sheets. Please see Note 7 - “ Commitments and Contingencies ” for further information. (4) The current portion of long-term debt includes $121.7 million of the remaining 2021 Notes that the Company redeemed on October 21, 2019 with cash on hand, after the application of the net proceeds of the 2025 Notes and the $99.5 million borrowing on the expanded credit facility borrowing base. Please see Note 15 - “ Subsequent Events ” for further information. 6.50% Senior Notes due 2021 (the “2021 Notes”) During the three months ended September 30, 2019, the Company repurchased $49.0 million aggregate principal amount of its 2021 Notes at an average price of 99.4% of par value, plus accrued and unpaid interest thereon up to, but not including the respective transaction dates. In conjunction with the repurchases during the three months ended September 30, 2019, the Company recorded no gain or loss from debt extinguishment. As of September 30, 2019 , the Company had repurchased $138.8 million aggregate principal amount of its 2021 Notes and the remaining principal amount following these repurchases was $761.2 million . During the nine months ended September 30, 2019 , the Company recorded a net gain from debt extinguishment of $0.7 million . On September 20, 2019, the Company announced a conditional redemption of its 2021 Notes at a price of par, plus accrued and unpaid interest. The obligation to redeem the 2021 Notes was conditioned upon, on or before the redemption date of October 21, 2019, the completion of an offering of at least $550.0 million principal amount of Calumet’s senior debt securities and the satisfaction of all conditions precedent to the effectiveness of the amendment to the Company’s revolving credit facility credit agreement, dated as of September 4, 2019. As of September 30, 2019, the conditions for the redemption of the 2021 Notes had not been met. The conditions for the redemption were met on October 11, 2019 , and on October 21, 2019 , the Company completed the redemption of the remaining balance of its 2021 Notes, plus accrued and unpaid interest. The redemption was funded with the $540.0 million net proceeds of the offering of 11.00% Senior Notes due 2025 (the “2025 Notes”), the proceeds of a $99.5 million revolving credit facility loan, and $121.7 million of cash on hand. The portion of principal that was redeemed with cash on hand has been classified as a current portion of long-term debt on the balance sheet. Please see Note 15 - “ Subsequent Events ” for further information. 2021 Notes, 7.625% Senior Notes due 2022 (the “2022 Notes”) and 7.75% Senior Notes due 2023 (the “2023 Notes”) In accordance with SEC Rule 3-10 of Regulation S-X, unaudited condensed consolidated financial statements of non-guarantors are not required. The Company has no assets or operations independent of its subsidiaries. Obligations under its 2021, 2022 and 2023 Notes are fully and unconditionally and jointly and severally guaranteed on a senior unsecured basis by the Company’s current 100%-owned operating subsidiaries and certain of the Company’s future operating subsidiaries, with the exception of certain of the Company’s “minor” subsidiaries (as defined by Rule 3-10 of Regulation S-X), including Calumet Finance Corp. (100%-owned Delaware corporation that was organized for the sole purpose of being a co-issuer of certain of the Company’s indebtedness, including the 2021, 2022 and 2023 Notes). There are no significant restrictions on the ability of the Company or subsidiary guarantors for the Company to obtain funds from its subsidiary guarantors by dividend or loan. None of the subsidiary guarantors’ assets represent restricted assets pursuant to SEC Rule 4-08(e)(3) of Regulation S-X. The 2021, 2022 and 2023 Notes are subject to certain automatic customary releases, including the sale, disposition or transfer of capital stock or substantially all of the assets of a subsidiary guarantor, designation of a subsidiary guarantor as unrestricted in accordance with the applicable indenture, exercise of legal defeasance option or covenant defeasance option, liquidation or dissolution of the subsidiary guarantor and a subsidiary guarantor ceases to both guarantee other Company debt and to be an obligor under the revolving credit facility. The Company’s operating subsidiaries may not sell or otherwise dispose of all or substantially all of their properties or assets to, or consolidate with or merge into, another company if such a sale would cause a default under the indentures governing the 2021, 2022 and 2023 Notes. On September 27, 2019, the Company executed supplemental indentures to the indentures governing the 2021, 2022 and 2023 Notes, naming its wholly-owned subsidiaries Calumet Mexico, LLC, Calumet Specialty Oils de Mexico, S. de R.L. de C.V., and Calumet Specialty Products Canada, ULC as additional Guarantors (as defined in the indentures). Following the execution of these supplemental indentures, the Company no longer has material subsidiaries that do not guarantee the 2021, 2022 and 2023 Notes. The indentures governing the 2021, 2022 and 2023 Notes contain covenants that, among other things, restrict the Company’s ability and the ability of certain of the Company’s subsidiaries to: (i) sell assets; (ii) pay distributions on, redeem or repurchase the Company’s common units or redeem or repurchase its subordinated debt; (iii) make investments; (iv) incur or guarantee additional indebtedness or issue preferred units; (v) create or incur certain liens; (vi) enter into agreements that restrict distributions or other payments from the Company’s restricted subsidiaries to the Company; (vii) consolidate, merge or transfer all or substantially all of the Company’s assets; (viii) engage in transactions with affiliates and (ix) create unrestricted subsidiaries. These covenants are subject to important exceptions and qualifications. At any time when the 2021, 2022 and 2023 Notes are rated investment grade by either Moody’s Investors Service, Inc. (“Moody’s”) or S&P Global Ratings (“S&P”) and no Default or Event of Default, each as defined in the indentures governing the 2021, 2022 and 2023 Notes, has occurred and is continuing, many of these covenants will be suspended. As of September 30, 2019 , the Company’s Fixed Charge Coverage Ratio (as defined in the indentures governing the 2021, 2022 and 2023 Notes) was 2.3 . As of September 30, 2019 , the Company was in compliance with all covenants under the indentures governing the 2021, 2022 and 2023 Notes. Third Amended and Restated Senior Secured Revolving Credit Facility On February 23, 2018 , the Company entered into the Third Amended and Restated Credit Agreement (the “Credit Agreement”) governing its senior secured revolving credit facility maturing in February 2023, which provides maximum availability of credit under the revolving credit facility of $600.0 million , subject to borrowing base limitations, and includes a $500.0 million incremental uncommitted expansion feature. The revolving credit facility includes a $25.0 million senior secured first loaned in and last to be repaid out (“FILO”) revolving credit facility limited by a FILO borrowing base calculation. The FILO commitment reduces ratably each quarter starting in November 2019 and ending in August 2020. The reductions in FILO commitments convert to revolving credit facility base commitments over the same period. Lenders under the revolving credit facility have a first priority lien on, among other things, the Company’s accounts receivable and inventory and substantially all of its cash. On September 4, 2019 , the Company entered into the First Amendment to the Credit Agreement. The amendment expands the borrowing base by $99.6 million on the Effective Date (as defined in the amendment) by adding the fixed assets of the Company’s Great Falls, MT refinery as collateral to the borrowing base. The $99.6 million expansion amortizes to zero on a straight-line basis over ten quarters starting in the first quarter of 2020. Additionally, while the fixed assets of the Great Falls, MT refinery are included in the borrowing base, the first amendment provides for a 25 basis points increase in the applicable margin for loans, as well as increases in the minimum availability under the revolving credit facility required for the Company to be able to perform certain actions, including to make restricted payments of other distributions, sell or dispose of certain assets, make acquisitions or investments, or prepay other indebtedness. Among other conditions precedent that were required to be satisfied before the Effective Date, the Company was required to consummate an offering of at least $450.0 million aggregate principal amount of senior unsecured notes. The conditions precedent were not satisfied until October 11, 2019. Therefore, the $99.6 million expansion was not in effect as of September 30, 2019. See Note 15 - “ Subsequent Events ” for further information. The revolving credit facility, which is the Company’s primary source of liquidity for cash needs in excess of cash generated from operations, matures in February 2023 and bears interest at a rate equal to prime plus an applicable margin or LIBOR plus an applicable margin, at the Company’s option. The margin can fluctuate quarterly based on the Company’s average availability for additional borrowings under the revolving credit facility in the preceding calendar quarter as follows: Base Loans FILO Loans Quarterly Average Availability Percentage Prime Rate Margin LIBOR Rate Margin Prime Rate Margin LIBOR Rate Margin ≥ 66% 0.50% 1.50% 1.50% 2.50% ≥ 33% and < 66% 0.75% 1.75% 1.75% 2.75% < 33% 1.00% 2.00% 2.00% 3.00% The credit agreement provides for a 25 basis point reduction in the applicable margin rates beginning in the quarter after our Leverage Ratio (as defined in the credit agreement) is less than 5.5 to 1.0. As the Company met this test in fiscal quarter ended June 30, 2019, its applicable margin for the quarter ended, and including, September 30, 2019 was 25 basis points for prime, 125 basis points for LIBOR, 125 basis points for prime rate based FILO loans and 225 basis points for LIBOR based FILO loans. The margin can fluctuate quarterly based on our average availability for additional borrowings under the revolving credit facility in the preceding calendar quarter. Following the October 11, 2019 Effective Date of the first amendment to the credit agreement, the applicable margin rates are increased by 25 basis points for as long as the Great Falls, MT refinery assets are contributing to the borrowing base. Letters of credit issued under the revolving credit facility accrue fees at a rate equal to the margin (measured in basis points) applicable to LIBOR revolver loans. In addition to paying interest quarterly on outstanding borrowings under the revolving credit facility, the Company is required to pay a commitment fee to the lenders under the revolving credit facility with respect to the unutilized commitments thereunder at a rate equal to 0.250% or 0.375% per annum depending on the average daily available unused borrowing capacity for the preceding month. The Company also pays a customary letter of credit fee, including a fronting fee of 0.125% per annum of the stated amount of each outstanding letter of credit, and customary agency fees. The revolving credit facility contains various covenants that limit, among other things, the Company’s ability to: incur indebtedness; grant liens; dispose of certain assets; make certain acquisitions and investments; redeem or prepay other debt or make other restricted payments such as distributions to unitholders; enter into transactions with affiliates; and enter into a merger, consolidation or sale of assets. Further, the revolving credit facility contains one springing financial covenant which provides that only if the Company’s availability to borrow loans under the revolving credit facility falls below the sum of the greater of (i) 10% of the borrowing base then in effect, or 15% while the Great Falls, MT refinery is included in the borrowing base, and (ii) $35.0 million (which amount is subject to increase in proportion to revolving commitment increases), plus the amount of FILO Loans outstanding, then the Company will be required to maintain as of the end of each fiscal quarter a Fixed Charge Coverage Ratio (as defined in the revolving credit facility agreement) of at least 1.0 to 1.0. As of September 30, 2019 , the Company was in compliance with all covenants under the revolving credit facility. Maturities of Long-Term Debt As of September 30, 2019 , principal payments on debt obligations and future minimum rentals on finance lease obligations are as follows (in millions): Year Maturity 2019 $ 122.1 2020 1.8 2021 642.1 2022 350.3 2023 325.4 Thereafter 1.4 Total $ 1,443.1 |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The Company is exposed to price risks due to fluctuations in the price of crude oil, refined products (primarily in the Company’s fuel products segment), natural gas and precious metals. The Company uses various strategies to reduce its exposure to commodity price risk. The strategies to reduce the Company’s risk utilize both physical forward contracts and financially settled derivative instruments, such as swaps, collars, options and futures, to attempt to reduce the Company’s exposure with respect to: • crude oil purchases and sales; • fuel product sales and purchases; • natural gas purchases; • precious metals purchases; and • fluctuations in the value of crude oil between geographic regions and between the different types of crude oil such as New York Mercantile Exchange West Texas Intermediate (“NYMEX WTI”), Light Louisiana Sweet, Western Canadian Select (“WCS”), WTI Midland, Mixed Sweet Blend and ICE Brent. The Company manages its exposure to commodity markets, credit, volumetric and liquidity risks to manage its costs and volatility of cash flows as conditions warrant or opportunities become available. These risks may be managed in a variety of ways that may include the use of derivative instruments. Derivative instruments may be used for the purpose of mitigating risks associated with an asset, liability and anticipated future transactions and the changes in fair value of the Company’s derivative instruments will affect its earnings and cash flows; however, such changes should be offset by price or rate changes related to the underlying commodity or financial transaction that is part of the risk management strategy. The Company does not speculate with derivative instruments or other contractual arrangements that are not associated with its business objectives. Speculation is defined as increasing the Company’s natural position above the maximum position of its physical assets or trading in commodities, currencies or other risk bearing assets that are not associated with the Company’s business activities and objectives. The Company’s positions are monitored routinely by a risk management committee to ensure compliance with its stated risk management policy and documented risk management strategies. All strategies are reviewed on an ongoing basis by the Company’s risk management committee, which will add, remove or revise strategies in anticipation of changes in market conditions and/or its risk profiles. Such changes in strategies are to position the Company in relation to its risk exposures in an attempt to capture market opportunities as they arise. The Company is obligated to repurchase crude oil and refined products from Macquarie at the termination of the Supply and Offtake Agreements in certain scenarios. The Company has determined that the redemption feature on the initially recognized liability related to the Supply and Offtake Agreements is an embedded derivative indexed to commodity prices. As such, the Company has accounted for these embedded derivatives at fair value with changes in the fair value, if any, recorded in gain (loss) on derivative instruments in the Company’s unaudited condensed consolidated statements of operations. The Company recognizes all derivative instruments at their fair values (see Note 11 - “ Fair Value Measurements ”) as either current assets or current liabilities in the condensed consolidated balance sheets. Fair value includes any premiums paid or received and unrealized gains and losses. Fair value does not include any amounts receivable from or payable to counterparties, or collateral provided to counterparties. Derivative asset and liability amounts with the same counterparty are netted against each other for financial reporting purposes in accordance with the provisions of our master netting arrangements. The following tables summarize the Company’s gross fair values of its derivative instruments, presenting the impact of offsetting derivative assets in the Company’s condensed consolidated balance sheets (in millions): September 30, 2019 December 31, 2018 Balance Sheet Location Gross Amounts of Recognized Assets Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets Gross Amounts of Recognized Assets Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets Derivative instruments not designated as hedges: Specialty products segment: Midland crude oil basis swaps Derivative assets $ — $ — $ — $ 1.0 $ — $ 1.0 Fuel products segment: Inventory financing obligation Obligations under inventory financing agreements $ 1.5 $ (1.5 ) $ — $ 1.5 $ — $ 1.5 WCS crude oil basis swaps Derivative assets — — — 16.5 (1.6 ) 14.9 WCS crude oil percentage basis swaps Derivative assets 2.4 (2.4 ) — — (6.1 ) (6.1 ) Midland crude oil basis swaps Derivative assets — — — 7.1 — 7.1 Gasoline crack spread swaps Derivative assets 0.2 (0.1 ) 0.1 — — — Diesel crack spread swap Derivative assets 0.2 — 0.2 7.4 — 7.4 Diesel percentage basis crack spread swap Derivative assets 1.2 (1.0 ) 0.2 — (6.0 ) (6.0 ) 2/1/1 Crack spread swap Derivative assets 0.3 — 0.3 — — — Total derivative instruments $ 5.8 $ (5.0 ) $ 0.8 $ 33.5 $ (13.7 ) $ 19.8 The following tables summarize the Company’s gross fair values of its derivative instruments, presenting the impact of offsetting derivative liabilities in the Company’s condensed consolidated balance sheets (in millions): September 30, 2019 December 31, 2018 Balance Sheet Location Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets Derivative instruments not designated as hedges: Fuel products segment: Inventory financing obligation Obligations under inventory financing agreements $ (2.7 ) $ 1.5 (1.2 ) $ — $ — $ — WCS crude oil basis swaps Derivative liabilities — — — (1.6 ) 1.6 — WCS crude oil percentage basis swaps Derivative liabilities (2.4 ) 2.4 — (6.1 ) 6.1 — Gasoline crack spread swaps Derivative liabilities (0.1 ) 0.1 — — — — Diesel percentage basis crack spread swaps Derivative liabilities (1.0 ) 1.0 — (6.0 ) 6.0 — Total derivative instruments $ (6.2 ) $ 5.0 $ (1.2 ) $ (13.7 ) $ 13.7 $ — The Company is exposed to credit risk in the event of nonperformance by its counterparties on these derivative transactions. The Company does not expect nonperformance on any derivative instruments, however, no assurances can be provided. The Company’s credit exposure related to these derivative instruments is represented by the fair value of contracts reported as derivative assets. As of September 30, 2019 , the Company had three counterparties in which the derivatives held were in net assets totaling $0.8 million . As of December 31, 2018 , the Company had four counterparties in which the derivatives held were net assets. To manage credit risk, the Company selects and periodically reviews counterparties based on credit ratings. The Company primarily executes its derivative instruments with large financial institutions that have ratings of at least A3 and BBB+ by Moody’s and S&P, respectively. In the event of default, the Company would potentially be subject to losses on derivative instruments with mark-to-market gains. The Company requires collateral from its counterparties when the fair value of the derivatives exceeds agreed-upon thresholds in its master derivative contracts with these counterparties. No such collateral was held by the Company as of September 30, 2019 or December 31, 2018 . Collateral received from counterparties is reported in other current liabilities, and collateral held by counterparties is reported in prepaid expenses and other current assets on the Company’s condensed consolidated balance sheets and is not netted against derivative assets or liabilities. Certain of the Company’s outstanding derivative instruments are subject to credit support agreements with the applicable counterparties which contain provisions setting certain credit thresholds above which the Company may be required to post agreed-upon collateral, such as cash or letters of credit, with the counterparty to the extent that the Company’s mark-to-market net liability, if any, on all outstanding derivatives exceeds the credit threshold amount per such credit support agreement. The majority of the credit support agreements covering the Company’s outstanding derivative instruments also contain a general provision stating that if the Company experiences a material adverse change in its business, in the reasonable discretion of the counterparty, the Company’s credit threshold could be lowered by such counterparty. The Company does not expect that it will experience a material adverse change in its business. Any outstanding collateral is released to the Company upon settlement of the related derivative instrument liability. As of September 30, 2019 and December 31, 2018 , the Company had provided no collateral to its counterparties. The cash flow impact of the Company’s derivative activities is classified primarily as a change in derivative activity in the operating activities section in the unaudited condensed consolidated statements of cash flows. Derivative Instruments Not Designated as Hedges For derivative instruments not designated as hedges, the change in fair value of the asset or liability for the period is recorded to gain (loss) on derivative instruments in the unaudited condensed consolidated statements of operations. Upon the settlement of a derivative not designated as a hedge, the gain or loss at settlement is recorded to gain (loss) on derivative instruments in the unaudited condensed consolidated statements of operations. The Company has entered into gasoline swaps, diesel swaps and certain crude oil basis swaps that do not qualify as cash flow hedges for accounting purposes as they were not entered into simultaneously with a corresponding NYMEX WTI derivative contract. However, these instruments provide economic hedges of the purchases and sales of the Company’s crude oil, gasoline and diesel. The Company recorded the following gains (losses) in its unaudited condensed consolidated statements of operations, related to its derivative instruments not designated as hedges (in millions): Type of Derivative Amount of Realized Gain (Loss) Recognized in Gain (Loss) on Derivative Instruments Amount of Unrealized Gain (Loss) Recognized in Gain (Loss) on Derivative Instruments Three Months Ended September 30, Three Months Ended September 30, 2019 2018 2019 2018 Fuel products segment: Inventory financing obligation — — (5.5 ) (9.4 ) WCS crude oil basis swaps — 0.4 — (3.4 ) WCS crude oil percentage basis swaps 0.1 — (0.3 ) (4.1 ) Midland crude oil basis swaps — (1.2 ) — 10.1 Gasoline swaps — — 0.1 — 2/1/1 Crack spread swaps — — 0.3 — Diesel crack spread swaps 0.3 0.5 0.2 (0.8 ) Diesel percentage basis crack spread swaps — — (0.2 ) 5.2 Total $ 0.4 $ (0.3 ) $ (5.4 ) $ (2.4 ) The Company recorded the following gains (losses) in its unaudited condensed consolidated statements of operations for the nine months ended September 30, 2019 and 2018 , related to its derivative instruments not designated as hedges (in millions): Type of Derivative Amount of Realized Gain (Loss) Recognized in Gain (Loss) on Derivative Instruments Amount of Unrealized Gain (Loss) Recognized in Gain (Loss) on Derivative Instruments Nine Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Specialty products segment: Midland crude oil basis swaps 1.6 — (1.0 ) — Fuel products segment: Inventory financing obligation — — (2.7 ) (16.3 ) Crude oil swaps — — — (0.3 ) WCS crude oil basis swaps 17.1 0.4 (14.9 ) (2.8 ) WCS crude oil percentage basis swaps 1.0 — 6.0 (4.9 ) Midland crude oil basis swaps 9.0 (1.2 ) (7.1 ) 13.0 Gasoline swaps — — 0.1 0.2 Gasoline crack spread swaps — (1.0 ) — 1.8 2/1/1 Crack spread swaps — — 0.3 — Diesel swaps — — — 0.2 Diesel crack spread swaps 6.4 (0.6 ) (7.2 ) 5.1 Diesel percentage basis crack spread swaps (0.5 ) — 6.3 4.4 Total $ 34.6 $ (2.4 ) $ (20.2 ) $ 0.4 Derivative Positions WCS Crude Oil Basis Swap Contracts The Company has entered into crude oil basis swaps to mitigate the risk of future changes in pricing differentials between WCS and NYMEX WTI. At September 30, 2019, the Company had no derivatives related to either WCS crude oil basis purchases or sales in its fuel products segment, as all positions outstanding at December 31, 2018 were settled during 2019. At December 31, 2018 , the Company had the following derivatives related to WCS crude oil basis purchases in its fuel products segment, none of which are designated as hedges: WCS Crude Oil Basis Swap Contracts by Expiration Dates Barrels Purchased BPD Average Differential to NYMEX WTI ($/Bbl) First Quarter 2019 419,000 4,656 $ (28.10 ) Second Quarter 2019 455,000 5,000 $ (28.22 ) Third Quarter 2019 460,000 5,000 $ (28.22 ) Fourth Quarter 2019 460,000 5,000 $ (28.22 ) Total 1,794,000 Average price $ (28.19 ) At December 31, 2018 , the Company had the following derivatives related to WCS crude oil basis sales in its fuel products segment, none of which are designated as hedges: WCS Crude Oil Basis Swap Contracts by Expiration Dates Barrels Sold BPD Average Differential to NYMEX WTI ($/Bbl) First Quarter 2019 388,000 4,311 $ (19.84 ) Second Quarter 2019 455,000 5,000 $ (19.84 ) Third Quarter 2019 460,000 5,000 $ (19.84 ) Fourth Quarter 2019 460,000 5,000 $ (19.84 ) Total 1,763,000 Average price $ (19.84 ) WCS Crude Oil Percentage Basis Swap Contracts The Company has entered into derivative instruments to secure a percentage differential of WCS crude oil to NYMEX WTI. At September 30, 2019 , the Company had the following derivatives related to crude oil percentage basis swap purchases in its fuel products segment, none of which are designated as hedges: WCS Crude Oil Percentage Basis Swap Contracts by Expiration Dates Barrels Purchased BPD Fixed Percentage of NYMEX WTI Fourth Quarter 2019 460,000 5,000 66.32 % Total 460,000 Average percentage 66.32 % At September 30, 2019 , the Company had the following derivatives related to crude oil percentage basis swap sales in its fuel products segment, none of which are designated as hedges: WCS Crude Oil Percentage Basis Swap Contracts by Expiration Dates Barrels Sold BPD Fixed Percentage of NYMEX WTI Fourth Quarter 2019 460,000 5,000 66.16 % Total 460,000 Average percentage 66.16 % At December 31, 2018 , the Company had the following derivatives related to crude oil percentage basis swap purchases in its fuel products segment, none of which are designated as hedges: WCS Crude Oil Percentage Basis Swap Contracts by Expiration Dates Barrels Purchased BPD Fixed Percentage of NYMEX WTI First Quarter 2019 450,000 5,000 66.32 % Second Quarter 2019 455,000 5,000 66.32 % Third Quarter 2019 460,000 5,000 66.32 % Fourth Quarter 2019 460,000 5,000 66.32 % Total 1,825,000 Average percentage 66.32 % At December 31, 2018 , the Company had no derivatives related to crude oil percentage basis swap sales in its fuel products segment. Midland Crude Oil Basis Swap Contracts The Company had no crude oil basis swaps to mitigate the risk of future changes in pricing differentials between WTI Midland and NYMEX WTI as of September 30, 2019 . At December 31, 2018 , the Company had the following derivatives related to Midland crude oil basis swaps in its fuel products segment, none of which are designated as hedges: Midland Crude Oil Basis Swap Contracts by Expiration Dates Barrels Purchased BPD Average Differential to NYMEX WTI ($/Bbl) First Quarter 2019 501,500 5,572 $ (12.79 ) Second Quarter 2019 773,500 8,500 $ (11.74 ) Total 1,275,000 Average price $ (12.27 ) Diesel Crack Spread Swap Contracts At September 30, 2019 , the Company had the following derivatives related to diesel crack spread sales in its fuel products segment, none of which are designated as hedges: Diesel Crack Spread Swap Contracts by Expiration Dates Barrels Sold BPD Average Swap Fourth Quarter 2019 62,000 674 $ 22.18 First Quarter 2020 136,500 1,500 $ 22.91 Second Quarter 2020 60,000 659 $ 23.10 Total 258,500 Average price $ 22.78 At December 31, 2018 , the Company had the following derivatives related to diesel crack spread sales in its fuel products segment, none of which are designated as hedges: Diesel Crack Spread Swap Contracts by Expiration Dates Barrels Sold BPD Average Swap First Quarter 2019 450,000 5,000 $ 25.58 Second Quarter 2019 455,000 5,000 $ 25.58 Third Quarter 2019 460,000 5,000 $ 25.58 Fourth Quarter 2019 460,000 5,000 $ 25.58 Total 1,825,000 Average price $ 25.58 Diesel Percentage Basis Crack Spread Swap Contracts The Company has entered into diesel crack spread derivative instruments to secure a fixed percentage of gross profit on diesel in excess of the floating value of NYMEX WTI crude oil. At September 30, 2019 , the Company had the following derivatives related to diesel percent basis crack spread swap sales in its fuel products segment, none of which are designated as hedges: Diesel Percentage Basis Crack Spread Swap Contracts by Expiration Dates Barrels Sold BPD Fixed Percentage of NYMEX WTI Fourth Quarter 2019 460,000 5,000 138.38 % Total 460,000 Average percentage 138.38 % At September 30, 2019 , the Company had the following derivatives related to diesel percentage basis swap purchases in its fuel products segment, none of which are designated as hedges: Diesel Percentage Basis Crack Spread Swap Contracts by Expiration Dates Barrels Purchased BPD Fixed Percentage of NYMEX WTI Fourth Quarter 2019 460,000 5,000 137.37 % Total 460,000 Average percentage 137.37 % At December 31, 2018 , the Company had the following derivatives related to diesel percent basis crack spread swap sales and no derivatives related to diesel percent basis crack spread swap purchases in its fuel products segment, none of which are designated as hedges: Diesel Percentage Basis Crack Spread Swap Contracts by Expiration Dates Barrels Sold BPD Fixed Percentage of NYMEX WTI First Quarter 2019 450,000 5,000 138.38 % Second Quarter 2019 455,000 5,000 138.38 % Third Quarter 2019 460,000 5,000 138.38 % Fourth Quarter 2019 460,000 5,000 138.38 % Total 1,825,000 Average percentage 138.38 % Gasoline Crack Spread Swap Contracts At September 30, 2019 , the Company had the following derivatives related to gasoline crack spread sales in its fuel products segment, none of which are designated as hedges: Gasoline Crack Spread Swap Contracts by Expiration Dates Barrels Sold BPD Average Swap Fourth Quarter 2019 62,000 674 $ 9.37 First Quarter 2020 136,500 1,500 $ 11.69 Second Quarter 2020 60,000 659 $ 16.48 Total 258,500 Average price $ 12.25 At December 31, 2018 , the Company had no derivatives related to gasoline crack spread sales in its fuel products segment. 2/1/1 Crack Spread Swap Contracts At September 30, 2019 , the Company had the following derivatives related to 2/1/1 crack spread sales in its fuel products segment, none of which are designated as hedges: 2/1/1 Crack Spread Swap Contracts by Expiration Dates Barrels Sold BPD Average Swap Fourth Quarter 2019 31,000 337 $ 15.88 First Quarter 2020 182,000 2,000 $ 17.43 Second Quarter 2020 15,000 165 $ 19.50 Total 228,000 Average price $ 17.35 At December 31, 2018 , the Company had no derivatives related to 2/1/1 crack spread sales in its fuel products segment. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements In accordance with ASC 820, the Company uses a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. Observable inputs are from sources independent of the Company. Unobservable inputs reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. These tiers include the following: • Level 1 — inputs include observable unadjusted quoted prices in active markets for identical assets or liabilities • Level 2 — inputs include other than quoted prices in active markets that are either directly or indirectly observable • Level 3 — inputs include unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions In determining fair value, the Company uses various valuation techniques and prioritizes the use of observable inputs. The availability of observable inputs varies from instrument to instrument and depends on a variety of factors including the type of instrument, whether the instrument is actively traded and other characteristics particular to the instrument. For many financial instruments, pricing inputs are readily observable in the market, the valuation methodology used is widely accepted by market participants and the valuation does not require significant management judgment. For other financial instruments, pricing inputs are less observable in the marketplace and may require management judgment. Recurring Fair Value Measurements Derivative Assets and Liabilities Derivative instruments are reported in the accompanying unaudited condensed consolidated financial statements at fair value. The Company’s derivative instruments consist of over-the-counter contracts, which are not traded on a public exchange. Substantially all of the Company’s derivative instruments are with counterparties that have long-term credit ratings of at least A3 and BBB+ by Moody’s and S&P, respectively. Commodity derivative instruments are measured at fair value using a market approach. To estimate the fair values of the Company’s commodity derivative instruments, the Company uses the forward rate, the strike price, contractual notional amounts, the risk-free rate of return and contract maturity. Various analytical tests are performed to validate the counterparty data. The fair values of the Company’s derivative instruments are adjusted for nonperformance risk and creditworthiness of the counterparty through the Company’s credit valuation adjustment (“CVA”). The CVA is calculated at the counterparty level utilizing the fair value exposure at each payment date and applying a weighted probability of the appropriate survival and marginal default percentages. The Company uses the counterparty’s marginal default rate and the Company’s survival rate when the Company is in a net asset position at the payment date and uses the Company’s marginal default rate and the counterparty’s survival rate when the Company is in a net liability position at the payment date. As a result of applying the applicable CVA at September 30, 2019 and December 31, 2018 , the Company’s net assets and net liabilities changed, in each case, by an immaterial amount. Observable inputs utilized to estimate the fair values of the Company’s derivative instruments were based primarily on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets. Based on the use of various unobservable inputs, principally non-performance risk, creditworthiness of the counterparties and unobservable inputs in the forward rate, the Company has categorized these derivative instruments as Level 3. Significant increases (decreases) in any of those unobservable inputs in isolation would result in a significantly lower (higher) fair value measurement. The Company believes it has obtained the most accurate information available for the types of derivative instruments it holds. See Note 10 - “ Derivatives ” for further information on derivative instruments. Pension Assets Pension assets are reported at fair value in the accompanying unaudited condensed consolidated financial statements. At September 30, 2019 , the Company’s investments associated with its pension plan primarily consisted of mutual funds. The mutual funds are valued at the net asset value of shares in each fund held by the Pension Plan at quarter end as provided by the respective investment sponsors or investment advisers. Plan investments can be redeemed within a short time frame (approximately ten business days), if requested. Liability Awards Unit based compensation liability awards are awards that are expected to be settled in cash on their vesting dates, rather than in equity units (“Liability Awards”). The Liability Awards are categorized as Level 1 because the fair value of the Liability Awards is based on the Company’s quoted closing unit price as of each balance sheet date. Renewable Identification Numbers Obligation The Company’s RINs Obligation is categorized as Level 2 and is measured at fair value using the market approach based on quoted prices from an independent pricing service. See Note 7 - “ Commitments and Contingencies ” for further information on the Company’s RINs Obligation. Hierarchy of Recurring Fair Value Measurements The Company’s recurring assets and liabilities measured at fair value were as follows (in millions): September 30, 2019 December 31, 2018 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Derivative assets: Gasoline crack spread swaps $ — $ — $ 0.1 $ 0.1 $ — $ — $ — $ — Inventory financing obligation — — — — — — 1.5 1.5 Diesel crack spread swaps — — 0.2 0.2 — — 7.4 7.4 Diesel percentage basis crack spread swaps — — 0.2 0.2 — — (6.0 ) (6.0 ) 2/1/1 Crack spread swap — — 0.3 0.3 — — — — WCS crude oil basis swaps — — — — — — 14.9 14.9 WCS crude oil percentage basis swaps — — — — — — (6.1 ) (6.1 ) Midland crude oil basis swaps — — — — — — 8.1 8.1 Total derivative assets $ — $ — $ 0.8 $ 0.8 $ — $ — $ 19.8 $ 19.8 Pension plan investments — — — — 0.1 — — 0.1 Total recurring assets at fair value $ — $ — $ 0.8 $ 0.8 $ 0.1 $ — $ 19.8 $ 19.9 Liabilities: Derivative liabilities: Inventory financing obligation $ — $ — $ (1.2 ) $ (1.2 ) $ — $ — $ — $ — Total derivative liabilities — — (1.2 ) (1.2 ) — — — — RINs Obligation — (14.4 ) — (14.4 ) — (15.8 ) — (15.8 ) Liability Awards (6.8 ) — — (6.8 ) (2.7 ) — — (2.7 ) Total recurring liabilities at fair value $ (6.8 ) $ (14.4 ) $ (1.2 ) $ (22.4 ) $ (2.7 ) $ (15.8 ) $ — $ (18.5 ) The table below sets forth a summary of net changes in fair value of the Company’s Level 3 financial assets and liabilities (in millions): Nine Months Ended September 30, 2019 2018 Fair value at January 1, $ 19.8 $ (10.4 ) Realized (gain) loss on derivative instruments (34.6 ) 2.4 Unrealized gain (loss) on derivative instruments (20.2 ) 0.4 Settlements 34.6 (2.4 ) Fair value at September 30, $ (0.4 ) $ (10.0 ) Total gain (loss) included in net loss attributable to changes in unrealized gain (loss) relating to financial assets and liabilities held as of September 30, $ (20.2 ) $ 0.4 All settlements from derivative instruments not designated as hedges are recorded in gain (loss) on derivative instruments in the unaudited condensed consolidated statements of operations. See Note 10 - “ Derivatives ” for further information on derivative instruments. Nonrecurring Fair Value Measurements Certain non-financial assets and liabilities are measured at fair value on a nonrecurring basis and are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment. Assets and liabilities acquired in business combinations are recorded at their fair value as of the date of acquisition. The Company reviews for goodwill impairment annually on October 1 and whenever events or changes in circumstances indicate its carrying value may not be recoverable. The fair value of the reporting units is determined using the income approach. The income approach focuses on the income-producing capability of an asset, measuring the current value of the asset by calculating the present value of its future economic benefits such as cash earnings, cost savings, corporate tax structure and product offerings. Value indications are developed by discounting expected cash flows to their present value at a rate of return that incorporates the risk-free rate for the use of funds, the expected rate of inflation and risks associated with the reporting unit. These assets would generally be classified within Level 3, in the event that the Company were required to measure and record such assets at fair value within its unaudited condensed consolidated financial statements. The Company periodically evaluates the carrying value of long-lived assets to be held and used, including definite-lived intangible assets and property, plant and equipment, when events or circumstances warrant such a review. Fair value is determined primarily using anticipated cash flows assumed by a market participant discounted at a rate commensurate with the risk involved and these assets would generally be classified within Level 3, the Company was required to measure and record such assets at fair value within its unaudited condensed consolidated financial statements. The Company’s investment in FHC is a non-marketable equity security without a readily determinable fair value. The Company records this investment using a measurement alternative which measures the security at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes with a same or similar security from the same issuer. The investment in FHC is recorded at fair value only if an impairment or observable price adjustment is recognized in the current period. If an observable price adjustment or impairment is recognized, the Company would classify this asset as Level 3 within the fair value hierarchy based on the nature of the fair value inputs. During the three and nine months ended September 30, 2019 , the Company recorded impairment on the investment in FHC and the categorization of the framework used to value the assets is considered Level 3. See Note 6 - “ Investment in Unconsolidated Affiliates ” for further information. Estimated Fair Value of Financial Instruments Cash and cash equivalents The carrying value of cash and cash equivalents is each considered to be representative of its fair value. Debt The estimated fair value of long-term debt at September 30, 2019 and December 31, 2018 , consists primarily of senior notes. The estimated aggregate fair value of the Company’s senior notes defined as Level 1 was based upon quoted market prices in an active market. The carrying value of borrowings, if any, under the Company’s revolving credit facility, finance lease obligations and other obligations approximate their fair values as determined by discounted cash flows and are classified as Level 3. See Note 9 - “ Long-Term Debt ” for further information on long-term debt. The Company’s carrying and estimated fair value of the Company’s financial instruments, carried at adjusted historical cost were as follows (in millions): September 30, 2019 December 31, 2018 Level Fair Value Carrying Value Fair Value Carrying Value Financial Instrument: Senior notes 1 $ 1,400.4 $ 1,425.9 $ 1,287.4 $ 1,560.7 Finance lease and other obligations 3 $ 6.9 $ 6.9 $ 47.6 $ 47.6 |
Earnings Per Unit
Earnings Per Unit | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Unit [Abstract] | |
Earnings Per Unit | The following table sets forth the computation of basic and diluted earnings per limited partner unit (in millions, except unit and per unit data): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Numerator for basic and diluted earnings per limited partner unit: Net loss from continuing operations $ (4.6 ) $ (16.0 ) $ (5.0 ) $ (70.1 ) Less: General partner’s interest in net loss from continuing operations (0.1 ) (0.3 ) (0.1 ) (1.4 ) Net loss from continuing operations available to limited partners $ (4.5 ) $ (15.7 ) $ (4.9 ) $ (68.7 ) Net loss from discontinued operations available to limited partners — (0.4 ) — (3.0 ) Net loss available to limited partners $ (4.5 ) $ (16.1 ) $ (4.9 ) $ (71.7 ) Denominator for basic and diluted earnings per limited partner unit: Weighted average limited partner units outstanding (1) 78,299,472 77,783,879 78,174,976 77,643,006 Limited partners’ interest basic and diluted net loss per unit: From continuing operations $ (0.06 ) $ (0.20 ) $ (0.06 ) $ (0.88 ) From discontinued operations — (0.01 ) — (0.04 ) Limited partners’ interest $ (0.06 ) $ (0.21 ) $ (0.06 ) $ (0.92 ) (1) Total diluted weighted average limited partner units outstanding excludes 0.1 million for the three and nine months ended September 30, 2019 and 0.2 million for the three and nine months ended September 30, 2018 , consisting of unvested phantom units. |
Segments and Related Informatio
Segments and Related Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segments and Related Information | a. Segment Reporting The Company determines its reportable segments based on how the business is managed internally for the products sold to customers, including how results are reviewed and resources are allocated by the chief operating decision makers (“CODM”). The Company’s operations are managed by the CODM using the following reportable segments: • Specialty Products. The specialty products segment is the Company’s core business which produces a variety of lubricating oils, solvents, waxes, synthetic lubricants and other products which are sold to customers who purchase these products primarily as raw material components for basic automotive, industrial and consumer goods. Specialty products also include synthetic lubricants used in manufacturing, mining and automotive applications. • Fuel Products . The fuel products segment produces primarily gasoline, diesel, jet fuel, asphalt and other products which are primarily sold to customers located in the PADD 3 and PADD 4 areas within the U.S. • Corporate. The corporate segment primarily consists of general and administrative expenses not allocated to the Specialty Products or Fuel Products segments. During the third quarter of 2019 , the CODM changed how the Company assesses performance, allocates resources, and allocates certain costs. In response to those changes, a corporate segment was added. Prior to the third quarter of 2019, various pricing models were used in determining the calculation of intersegment sales. Beginning in the third quarter of 2019, all intersegment sales are calculated using market-based transfer pricing. Further, cost allocations were modified to conform to the new segment alignments. This change in management reporting has resulted in an increase in the inter-segment sales reported by the Company’s specialty products operating segment. Prior period amounts have been recast to conform with the current presentation. These changes in management reporting had no impact on consolidated revenue, segment reporting of external sales or consolidated Adjusted EBITDA. The accounting policies of the reporting segments are the same as those described in the summary of significant accounting policies as disclosed in Note 2 — “Summary of Significant Accounting Policies” in Part II, Item 8 “Financial Statements and Supplementary Data” of the Company’s 2018 Annual Report, except that the disaggregated financial results for the reporting segments have been prepared using a management approach, which is consistent with the basis and manner in which management internally disaggregates financial information for the purposes of assisting internal operating decisions. The Company accounts for intersegment sales and transfers using a market-based approach. The Company evaluates performance based upon Adjusted EBITDA (a non-GAAP financial measure). The Company defines Adjusted EBITDA for any period as EBITDA adjusted for (a) impairment; (b) unrealized gains and losses from mark to market accounting for hedging activities; (c) realized gains and losses under derivative instruments excluded from the determination of net income (loss); (d) non-cash equity-based compensation expense and other non-cash items (excluding items such as accruals of cash expenses in a future period or amortization of a prepaid cash expense) that were deducted in computing net income (loss); (e) debt refinancing fees, premiums and penalties; (f) any net loss realized in connection with an asset sale that was deducted in computing net income (loss) and (g) all extraordinary, unusual or non-recurring items of gain or loss, or revenue or expense. The Company manages its assets on a total company basis, not by segment. Therefore, management does not review any asset information by segment and, accordingly, the Company does not report asset information by segment. Reportable segment information for the three months ended September 30, 2019 and 2018 , is as follows (in millions): Three Months Ended September 30, 2019 Specialty Products Fuel Products Corporate Eliminations Consolidated Total Sales: External customers $ 355.8 $ 573.8 $ — $ — $ 929.6 Intersegment sales 19.8 14.3 — (34.1 ) — Total sales $ 375.6 $ 588.1 $ — $ (34.1 ) $ 929.6 Adjusted EBITDA $ 52.5 $ 44.1 $ (23.1 ) $ — $ 73.5 Reconciling items to net loss: Depreciation and amortization 12.9 18.6 2.0 — 33.5 Other non-recurring expenses — — — — 1.3 Unrealized loss on derivatives 5.4 Interest expense 33.8 Loss on impairment and disposal of fixed assets 3.2 Equity based compensation and other items 0.4 Income tax expense 0.5 Net loss from continuing operations $ (4.6 ) Three Months Ended September 30, 2018 Specialty Products Fuel Products Corporate Eliminations Consolidated Total Sales: External customers $ 349.2 $ 604.3 $ — $ — $ 953.5 Intersegment sales 24.1 20.9 — (45.0 ) — Total sales $ 373.3 $ 625.2 $ — $ (45.0 ) $ 953.5 Adjusted EBITDA $ 36.6 $ 41.9 $ (24.0 ) $ 54.5 Reconciling items to net loss: Depreciation and amortization 12.1 18.1 2.1 — 32.3 Realized loss on derivatives, not reflected in net loss or settled in a prior period 0.1 0.6 — — 0.7 Unrealized loss on derivatives 2.4 Interest expense 37.7 Equity based compensation and other items (3.0 ) Income tax expense 0.4 Net loss from continuing operations $ (16.0 ) Reportable segment information for the nine months ended September 30, 2019 and 2018 , is as follows (in millions): Nine Months Ended September 30, 2019 Specialty Products Fuel Products Corporate Eliminations Consolidated Total Sales: External customers $ 1,052.4 $ 1,625.4 $ — $ 2,677.8 Intersegment sales 67.0 37.7 — (104.7 ) — Total sales $ 1,119.4 $ 1,663.1 $ — $ (104.7 ) $ 2,677.8 Income from unconsolidated affiliates $ 3.8 $ — $ 3.8 Adjusted EBITDA $ 171.3 $ 155.5 $ (76.0 ) $ 250.8 Reconciling items to net loss: Depreciation and amortization 36.6 56.8 5.7 99.1 Other non-recurring expenses — — — 1.3 Gain on sale of unconsolidated affiliate (1.2 ) — — (1.2 ) Unrealized loss on derivatives 20.2 Interest expense 99.2 Gain on debt extinguishment (0.7 ) Loss on impairment and disposal of fixed assets 31.1 Equity based compensation and other items 6.1 Income tax expense 0.7 Net loss from continuing operations $ (5.0 ) Nine Months Ended September 30, 2018 Specialty Products Fuel Products Corporate Eliminations Consolidated Total Sales: External customers $ 1,053.6 $ 1,595.9 $ — $ — $ 2,649.5 Intersegment sales 67.8 46.8 — (114.6 ) — Total sales $ 1,121.4 $ 1,642.7 $ — $ (114.6 ) $ 2,649.5 Loss from unconsolidated affiliates $ (3.7 ) $ — $ — $ (3.7 ) Adjusted EBITDA $ 129.3 $ 155.3 $ (74.4 ) $ — $ 210.2 Reconciling items to net loss: Depreciation and amortization 37.5 53.4 6.6 — 97.5 Realized loss on derivatives, not reflected in net loss or settled in a prior period 0.5 2.3 — — 2.8 Unrealized gain on derivatives (0.4 ) Interest expense 120.4 Loss on debt extinguishment 58.8 Equity based compensation and other items 0.2 Income tax expense 1.0 Net loss from continuing operations $ (70.1 ) b. Geographic Information International sales accounted for less than 10% of consolidated sales in each of the three and nine months ended September 30, 2019 and 2018 . Substantially all of the Company’s long-lived assets are domestically located. c. Product Information The Company offers specialty products primarily in categories consisting of lubricating oils, solvents, waxes, synthetic lubricants and other products. Fuel products categories primarily consist of gasoline, diesel, jet fuel, asphalt and other products. The following table sets forth the major product category sales for each of the Specialty products and Fuel products segments for the three months ended September 30, 2019 and 2018 (dollars in millions): Three Months Ended September 30, 2019 2018 Specialty products: Lubricating oils $ 156.1 16.8 % $ 146.6 15.4 % Solvents 86.1 9.3 % 88.3 9.3 % Waxes 30.1 3.2 % 30.1 3.2 % Packaged and synthetic specialty products 59.6 6.4 % 64.0 6.6 % Other 23.9 2.6 % 20.2 2.1 % Total $ 355.8 38.3 % $ 349.2 36.6 % Fuel products: Gasoline $ 189.5 20.4 % $ 191.2 20.1 % Diesel 225.4 24.2 % 257.5 27.0 % Jet fuel 39.5 4.2 % 28.1 2.9 % Asphalt, heavy fuel oils and other 119.4 12.8 % 127.5 13.4 % Total $ 573.8 61.7 % $ 604.3 63.4 % Consolidated sales $ 929.6 100.0 % $ 953.5 100.0 % The following table sets forth the major product category sales for the nine months ended September 30, 2019 and 2018 (dollars in millions): Nine Months Ended September 30, 2019 2018 Specialty products: Lubricating oils $ 460.7 17.2 % $ 448.3 16.9 % Solvents 254.2 9.5 % 254.3 9.6 % Waxes 92.6 3.5 % 87.8 3.3 % Packaged and synthetic specialty products 180.2 6.7 % 204.9 7.8 % Other 64.7 2.4 % 58.3 2.2 % Total $ 1,052.4 39.3 % $ 1,053.6 39.8 % Fuel products: Gasoline $ 530.9 19.8 % $ 528.8 20.0 % Diesel 669.4 25.0 % 681.5 25.7 % Jet fuel 100.8 3.8 % 78.9 3.0 % Asphalt, heavy fuel oils and other 324.3 12.1 % 306.7 11.5 % Total $ 1,625.4 60.7 % $ 1,595.9 60.2 % Consolidated sales $ 2,677.8 100.0 % $ 2,649.5 100.0 % d. Major Customers During the three and nine months ended September 30, 2019 and 2018 , the Company had no customer that represented 10% or greater of consolidated sales. e. Major Suppliers During the three months ended September 30, 2019 and 2018 , the Company had two suppliers that supplied approximately 67.5% and 56.5% , respectively, of its crude oil supply. During the nine months ended September 30, 2019 and 2018 , the Company had two suppliers that supplied approximately 64.6% and 58.5% , respectively, of its crude oil supply. |
Leases (Notes)
Leases (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | 14. Leases The Company has various operating and finance leases primarily for the use of land, storage tanks, railcars, equipment, precious metals and office facilities that have remaining lease terms of greater than one year to 15 years, some of which include options to extend the lease for up to 35 years , and some of which include options to terminate the lease within one year. Effective January 1, 2019, the Company adopted ASU 2016-02 using a modified retrospective transition approach that applied the new standard to all leases existing at the effective date of the standard with no restatement of prior periods. Given the adoption of ASU 2016-02, the Company’s operating leases have been included in operating lease right-of-use (“ROU”) assets, current portion of operating lease liabilities and long-term portion of operating lease liabilities in the condensed consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. The Company’s finance leases are included in property, plant and equipment, current portion of long-term debt and long-term debt, less current portion in the condensed consolidated balance sheets, which remains consistent with the Company’s presentation of its finance leases prior to the adoption of ASU 2016-02. The Company elected to apply the following practical expedients and policy elections provided by the standard at transition: • Package of Three - The Company has elected that it will not reassess contracts that have expired or existed at the date of adoption for (1) leases under the new definition of a lease, (2) lease classification, and (3) whether previously capitalized initial direct costs would qualify for capitalization under ASC 842. • Portfolio Approach - The Company elected to determine the discount rate used to measure lease liabilities at the portfolio level. Specifically, the Company segregated its leases into different populations based on lease term. • Discount Rate - The Company elected to apply the discount rate at transition based on the remaining lease term and lease payments rather than the original lease term and lease payments. As a majority of the Company’s leases do not provide an implicit rate, the Company used an incremental borrowing rate based on information available at the date of transition to determine the present value of lease payments. • Lease/Non-Lease Components - The Company elected to not separate non-lease components. • Definition of Minimum Rental Payments - The Company elected to include executory costs as part of the minimum lease payments for purposes of measuring the lease liability and right-of-use asset at transition. • Land Easement - The Company elected not to assess whether any land easements are, or contain, leases in accordance with ASC 842 when transitioning to the standard. Supplemental balance sheet information related to the Company’s leases as of September 30, 2019 , were as follows (in millions): September 30, 2019 Assets: Classification: Operating lease assets Operating lease right-of-use assets (2) $ 110.5 Finance lease assets Property, plant and equipment, net (1) 3.2 Total leased assets $ 113.7 Liabilities: Current Operating Current portion of operating lease liabilities (2) $ 62.3 Finance Current portion of long-term debt 0.3 Non-current Operating Long-term operating lease liabilities (2) 48.9 Finance Long term debt, less current portion 2.5 Total lease liabilities $ 114.0 (1) Finance lease assets are recorded net of accumulated amortization of $7.1 million as of September 30, 2019 . (2) In the third quarter of 2019 , the Company had additions to its operating lease right of use assets and operating lease liabilities of approximately $2.7 million . Lease expense for lease payments is recognized on a straight-line basis over the lease term. The components of lease expense related to the Company’s leases for the three and nine months ended September 30, 2019 were as follows (in millions). Three Months Ended Nine Months Ended Lease Costs: Classification: September 30, 2019 Fixed operating lease cost Cost of Sales; SG&A Expenses $ 16.7 $ 50.4 Short-term operating lease cost (1) Cost of Sales; SG&A Expenses 2.2 5.6 Variable operating lease cost (2) (3) Cost of Sales; SG&A Expenses 0.4 1.1 Finance lease cost: Amortization of right-of-use asset Cost of Sales 0.4 1.1 Interest on lease liabilities Interest expense 0.2 1.3 Total lease cost $ 19.9 $ 59.5 (1) The Company’s leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheets. (2) Approximately $0.5 million of the Company’s variable operating lease cost for the nine months ended September 30, 2019 relates to its lease agreement with Phillips 66 related to the LVT unit at its Lake Charles, Louisiana refinery (“the LVT Agreement”). Pursuant to the LVT Agreement, Phillips 66 is obligated to supply a minimum supply quantity which the Company agrees to purchase through December 31, 2020. Pricing for the agreement is indexed to the prior month’s average of Platts Mid USGC 55 Grade Jet Kero price on the day of loading plus an adder. Phillips 66 invoices the Company for the estimated volume of product to be purchased by the Company based on a supplied forecast and differences between actual volumes purchased and the estimated volume of product originally billed makes up the variable component of the operating lease contract. There were no variable operating lease costs related the LVT Agreement for the three months ended September 30, 2019 (3) The Company’s railcar leases typically include a mileage limit the railcar can travel over the life of the lease. For any mileage incurred over this limit, the Company is obligated to pay an agreed upon dollar value for each mile that is traveled over the limit. As of September 30, 2019 , the Company had estimated minimum commitments for the payment of rentals under leases which, at inception, had a noncancelable term of more than one year, as follows (in millions): Maturity of Lease Liabilities Operating Leases (1) Finance Leases (2) Total 2019 $ 17.3 $ 0.1 $ 17.4 2020 65.8 0.5 66.3 2021 14.6 0.5 15.1 2022 10.3 0.5 10.8 2023 6.9 0.5 7.4 Thereafter 7.2 1.6 8.8 Total $ 122.1 $ 3.7 $ 125.8 Less: Interest 10.9 0.9 11.8 Present value of lease liabilities $ 111.2 $ 2.8 $ 114.0 (1) As of September 30, 2019 , the Company’s operating lease payments included no material options to extend lease terms that are reasonably certain of being exercised. The Company has no legally binding minimum lease payments for leases signed but not yet commenced as of September 30, 2019 . (2) As of September 30, 2019 , the Company’s finance lease payments included no material options to extend lease terms that are reasonably certain of being exercised. In addition, the Company has no legally binding minimum lease payments for leases that have been signed but not yet commenced as of September 30, 2019 . Weighted-Average Lease Term and Discount Rate The weighted-average remaining lease term and weighted-average discount rate for the Company’s operating and finance leases were as follows: September 30, 2019 Lease Term and Discount Rate: Weighted-average remaining lease term (years): Operating leases 2.6 Finance leases 7.3 Weighted-average discount rate: Operating leases 7.3 % Finance leases 8.8 % |
Guarantor Disclosures (Notes)
Guarantor Disclosures (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Non-Guarantors [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 15. Guarantor Disclosures The Company’s payment obligations under the 2021 Notes, 2022 Notes, and 2023 Notes are fully and unconditionally and jointly and severally guaranteed on a senior unsecured basis by the Company’s current 100%-owned operating subsidiaries and certain of the Company’s future operating subsidiaries (the “100% Owned Guarantor Subsidiaries”), except Calumet Finance Corp. (the “Co-Issuer”) and certain other subsidiaries of the Company that do not guarantee such indebtedness (the “Non-Guarantor Subsidiaries”). The following unaudited condensed consolidating financial information presents the financial condition, results of operations and cash flows of Calumet Specialty Products Partners, L.P., the Co-Issuer, the 100% Owned Guarantor Subsidiaries, and the Non-Guarantor Subsidiaries, with the consolidating eliminations necessary to present the Company’s results on a consolidated basis. UNAUDITED CONDENSED SUPPLEMENTAL CONSOLIDATED BALANCE SHEET September 30, 2019 (In millions) Parent Co-Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Current assets: Cash and cash equivalents $ — $ — $ — $ — $ — $ — Accounts receivable, net: — — — — — — Inventories — — — — — — Prepaid expenses and other current assets — — — — — — Intercompany receivable — — — — — — Total current assets — — — — — — Property, plant and equipment, net — — — — — — Goodwill and other intangible assets, net — — — — — — Investment in subsidiaries — — — — — — Other noncurrent assets, net — — — — — — Total assets $ — $ — $ — $ — $ — $ — Liabilities and Partners’ Capital Current liabilities: Accounts payable $ — $ — $ — $ — $ — $ — Accrued and other current liabilities — — — — — — Current portion of long-term debt — — — — — — Intercompany payable — — — — — — Total current liabilities — — — — — — Other long-term liabilities — — — — — — Deferred income taxes — — — — — — Long-term debt, less current portion — — — — — — Total liabilities — — — — — — Total partners’ capital — — — — — — Total liabilities and partners’ capital $ — $ — $ — $ — $ — $ — UNAUDITED CONDENSED SUPPLEMENTAL CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended September 30, 2019 (In millions) Parent Co-Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Sales $ — $ — $ — $ — $ — $ — Cost of sales — — — — — — Gross profit — — — — — — Operating costs and expenses: — Selling, general and administrative — — — — — — Loss on impairment and disposal of assets — — — — — — Other operating expenses — — — — — — Operating income (expense) — — — — — — Other income (expense): — Interest expense — — — — — — Other income — — — — — — Equity in net income (loss) of subsidiaries — — — — — — Income (loss) before income tax — — — — — — Income tax expense (benefit) from continuing operations — — — — — — Net income (loss) $ — $ — $ — $ — $ — $ — Other comprehensive income (loss): Comprehensive income (loss) attributable to partners’ capital $ — $ — $ — $ — $ — $ — UNAUDITED CONDENSED SUPPLEMENTAL CONSOLIDATED STATEMENTS OF OPERATIONS Nine Months Ended September 30, 2019 (In millions) Parent Co-Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Sales $ — $ — $ — $ — $ — $ — Cost of sales — — — — — — Gross profit — — — — — — Operating costs and expenses: Selling, general and administrative — — — — — — Loss on impairment and disposal of assets — — — — — — Other operating expense — — — — — — Operating income (expense) — — — — — — Other income (expense): Interest expense — — — — — — Equity in net income (loss) of subsidiaries — — — — — Other income — — — — — — Net income (loss) before income tax — — — — — — Income tax expense (benefit) — — — — — Net income (loss) $ — $ — $ — $ — $ — $ — Other comprehensive income (loss): Foreign currency translation adjustment — — — — — — Comprehensive income (loss) attributable to partner's capital $ — $ — $ — $ — $ — $ — UNAUDITED CONDENSED SUPPLEMENTAL CONSOLIDATED STATEMENT OF CASH FLOWS Nine Months Ended September 30, 2019 (In millions) Parent Co-Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Operating activities Net cash provided by (used in) operating activities $ — $ — $ — $ — $ — $ — Investing activities Additions to property, plant and equipment — — — — — — Proceeds from sale of unconsolidated affiliate — — — — — — Proceeds from sale of property, plant and equipment — — — — — — Net cash provided by discontinued investing activities — — — — — — (Contributions) Distribution to subsidiaries — — — — — — Net cash provided by (used in) investing activities — — — — — — Financing activities Repayments of borrowings — senior notes — — — — — — Net proceeds from inventory financing obligations — — — — — — Payments on other financing obligations — — — — — — Changes in intercompany balances — — — — — — Contributions from Calumet GP, LLC — — — — — — Net cash provided by (used in) financing activities — — — — — — Net increase (decrease) in cash and cash equivalents $ — $ — $ — $ — $ — $ — Cash and cash equivalents at beginning of period $ — $ — $ — $ — $ — $ — Cash and cash equivalents at end of period $ — $ — $ — $ — $ — $ — |
Subsequent Events (Notes)
Subsequent Events (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 15. Subsequent Events On October 11, 2019 , the Company issued and sold $550.0 million aggregate principal amount of 2025 Notes, which mature on April 15, 2025 at par. The Company received net proceeds of $540.0 million net of initial purchasers’ discounts and estimated expenses. The Company used the net proceeds along with revolver borrowings and cash on hand to fund the redemption of the 2021 Notes. Interest on the 2025 Notes is paid semiannually in arrears on April 15 and October 15 of each year, beginning on April 15, 2020. Also on October 11, 2019, with all conditions precedent met, the $99.6 million borrowing base expansion provided for in the First Amendment to the Third Amended and Restated Credit Agreement went into effect. Please read Note 9 - “Long-Term Debt” for further information. On October 21, 2019 , the Company redeemed at par $761.2 million aggregate principal amount outstanding of the remaining 2021 Notes issued in March 2014 with the net proceeds from the issuance of the 2025 Notes, together with borrowings under the Company’s revolving credit facility and cash on hand, at a redemption price of $761.2 million , plus accrued and unpaid interest. Please read Note 9 - “Long-Term Debt” for further information. On November 10, 2019 , the Company entered into a membership interest purchase agreement (the “Purchase Agreement”) with Starlight Relativity Acquisition Company LLC, a Delaware limited liability company (“Starlight”), pursuant to which Starlight acquired from the Company (the “Transaction”) all of the issued and outstanding membership interests in Calumet San Antonio Refining, LLC, a Delaware limited liability company (“Calumet San Antonio”) and wholly owned subsidiary of the Company, with an effective date of November 1, 2019. Calumet San Antonio owns a refinery located in San Antonio, Texas and related assets including associated hydrocarbon inventories and a crude oil terminal and pipeline. The operating results of Calumet San Antonio are reported in our Fuel products segment. The Transaction closed on November 10, 2019. Under the Purchase Agreement, Starlight paid $63.0 million in cash minus adjustments for net working capital and inventories measured on November 1, 2019 and reimbursement of certain costs. In connection with the Transaction, the Partnership, Calumet San Antonio, TexStar Midstream Logistics, L.P. , TexStar Midstream Logistics Pipeline, LP and Tailwater Capital, LLC entered into a Settlement and Release Agreement (the “Settlement Agreement”), pursuant to which the Partnership agreed to pay TexStar and its affiliates a cash payment of $1.0 million and the parties mutually agreed to dismiss the litigation among the parties with respect to the Throughput and Deficiency Agreement (the “Pipeline Agreement”) and mutually release each other with respect to the legal dispute relating to the termination of the Pipeline Agreement. As a result of the Settlement Agreement, the Company will derecognize the $38.1 million liability related to the Pipeline Agreement. In 2018, the Company entered into a long-term commitment in the form of a throughput and deficiency agreement for future transportation of West Texas crude oil via third party pipeline facilities presently under construction. This agreement is not included in the sale of Calumet San Antonio and has a maximum present value liability of $20.6 million over its seven year term. The Company is pursuing alternatives in an effort to offset a significant amount of the costs expected under this agreement. However, there can be no assurance that the Company will be successful in realizing the alternatives to reduce these costs. Consequently, in connection with the sale of Calumet San Antonio, the Company will record a liability, of $20.6 million for the present value of the annual costs over its seven year term. Major categories of assets and liabilities at their carrying values to be disposed of as of September 30, 2019 consist of the following (in millions). September 30, 2019 ($ in millions) (Unaudited) ASSETS Current assets: Accounts receivable, net $ 17.8 Inventories 9.7 Prepaid expenses and other current assets 5.4 Total current assets 32.9 Property, plant and equipment, net 80.8 Operating lease right-of-use assets 1.6 Other noncurrent assets, net 4.3 Total assets $ 119.6 LIABILITIES AND PARTNERS’ CAPITAL Current liabilities: Accounts payable $ 46.7 Accrued salaries, wages and benefits 0.2 Other taxes payable 4.4 Other current liabilities 38.2 Current portion of operating lease liabilities 0.7 Total current liabilities 90.2 Long-term operating lease liabilities 1.3 Total liabilities $ 91.5 Commitments and contingencies Total partners’ capital 28.1 Total liabilities and partners’ capital $ 119.6 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Fair Value Measurement [Policy Text Block] | The Company’s investment in FHC is a non-marketable equity security without a readily determinable fair value. The Company records this investment using a measurement alternative which measures the security at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes with a same or similar security from the same issuer. The investment in FHC is recorded at fair value only if an impairment or observable price adjustment is recognized in the current period. If an observable price adjustment or impairment is recognized, the Company would classify this asset as Level 3 within the fair value hierarchy based on the nature of the fair value inputs. |
Inventory Financing [Policy Text Block] | While title to certain inventories will reside with Macquarie, the Supply and Offtake Agreements are accounted for by the Company similar to a product financing arrangement; therefore, the inventories sold to Macquarie will continue to be included in the Company’s condensed consolidated balance sheets until processed and sold to a third party. Each reporting period, the Company will record liabilities in an amount equal to the amount the Company expects to pay to repurchase the inventory held by Macquarie based on market prices at the termination date included in obligations under inventory financing agreements in the condensed consolidated balance sheets. The Company has determined that the redemption feature on the initially recognized liabilities related to the Supply and Offtake Agreements is an embedded derivative indexed to commodity prices. As such, the Company has accounted for these embedded derivatives at fair value with changes in the fair value, if any, recorded in gain (loss) on derivative instruments in the Company’s unaudited condensed consolidated statements of operations. For more information on the valuation of the associated derivatives, see Note 10 - “ Derivatives ” and Note 11 - “ Fair Value Measurements .” The embedded derivatives will be recorded in obligations under inventory financing agreements on the condensed consolidated balance sheets. The cash flow impact of the embedded derivatives will be classified as a change in inventory financing activity in the financing activities section in the unaudited condensed consolidated statements of cash flows. |
Basis of Accounting | The unaudited condensed consolidated financial statements of the Company as of September 30, 2019 and for the three and nine months ended September 30, 2019 and 2018 , included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and disclosures normally included in the consolidated financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) in the U.S. have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the following disclosures are adequate to make the information presented not misleading. The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These unaudited condensed consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary to present fairly the results of operations for the interim periods presented. All adjustments are of a normal nature, unless otherwise disclosed. The results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 . These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s 2018 Annual Report. |
RINS Obligation | The Company’s Renewable Identification Numbers (“RINs”) obligation (“RINs Obligation”) represents a liability for the purchase of RINs to satisfy the EPA requirement to blend biofuels into the fuel products it produces pursuant to the EPA’s RFS. RINs are assigned to biofuels produced in the U.S. as required by the EPA. The EPA sets annual quotas for the percentage of biofuels that must be blended into transportation fuels consumed in the U.S. and, as a producer of motor fuels from petroleum, the Company is required to blend biofuels into the fuel products it produces at a rate that will meet the EPA’s annual quota. To the extent the Company is unable to blend biofuels at that rate, it must purchase RINs in the open market to satisfy the annual requirement. The Company’s RINs Obligation is based on the amount of RINs it must purchase and the price of those RINs as of the balance sheet date. The Company uses the inventory model to account for RINs, measuring acquired RINs at weighted-average cost. The cost of RINs used each period is charged to cost of sales with cash inflows and outflows recorded in the operating cash flow section of the unaudited condensed consolidated statements of cash flows. The liability is calculated by multiplying the RINs shortage (based on actual results) by the period end RIN spot price. The Company recognizes an asset at the end of each reporting period in which it has generated RINs in excess of its RINs Obligation. The asset is initially recorded at cost at the time the Company acquires them and are subsequently revalued at the lower of cost or market as of the last day of each accounting period and the resulting adjustments are reflected in cost of sales for the period in the unaudited condensed consolidated statements of operations. The value of RINs in excess of the RINs Obligation, if any, would be reflected in other current assets on the condensed consolidated balance sheets. RINs generated in excess of the Company’s current RINs Obligation may be sold or held to offset future RINs Obligations. Any such sales of excess RINs are recorded in cost of sales in the unaudited condensed consolidated statements of operations. The liabilities associated with the Company’s RINs Obligation are considered recurring fair value measurements. |
New Accounting Pronouncements | Adopted Accounting Pronouncements On January 1, 2019, the Company adopted ASU No. 2016-02 , Leases (Topic 842) (“ASU 2016-02”) and all the related amendments to its lease contracts using the modified retrospective method. The effective date was used as the Company’s date of initial application with no restatement of prior periods. As such, prior periods continue to be reported under the accounting standards in effect for those periods. See Note 14 - “ Leases ” for further information. On January 1, 2019, the Company adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which improves the financial reporting of hedging relationships to better align risk management activities in financial statements and make certain targeted improvements to simplify the application of the hedge accounting guidance in current GAAP. Given the Company’s current risk management strategy of not designating any of its derivative positions as hedges, the adoption of this guidance had no effect on our consolidated financial statements. If, in the future, the Company decides to modify its hedging strategies, this new accounting guidance would become applicable and will be applied at that time. On January 1, 2019, the Company adopted ASU No. 2018-07, Compensation — Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”). This update simplifies the guidance related to nonemployee share-based payments by superseding ASC 505-50 and expanding the scope of ASC 718 to include all share-based payment arrangements related to the acquisition of goods and services from both nonemployees and employees. Prior to the issuance of this standard update, nonemployee share-based payments were subject to ASC 505-50 requirements while employee share-based payments were subject to ASC 718 requirements. ASU 2018-07 is effective for fiscal years (including interim periods) beginning after December 15, 2018, with early adoption permitted. The adoption of ASU 2018-07 had no impact on the Company’s condensed consolidated financial statements. |
Revenue from Contract with Customer [Policy Text Block] | The Company may incur incremental costs to obtain a sales contract, which under ASC 606 should be capitalized and amortized over the life of the contract. The Company has elected to apply the practical expedient in ASC 340-40-50-5 allowing the Company to expense these costs since the contracts are short-term in nature with a contract term of one year or less. The Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with a customer. For each contract, the Company considers the promise to transfer products, each of which are distinct, to be the identified performance obligations. In determining the transaction price, the Company evaluates whether the price is subject to variable consideration such as product returns, rebates or other discounts to determine the net consideration to which the Company expects to be entitled. The Company transfers control and recognizes revenue upon shipment to the customer or, in certain cases, upon receipt by the customer in accordance with contractual terms. the Company collects and remits sales taxes associated with certain sales of its products to non-exempt customers. The Company excludes excise taxes and sales taxes that are collected from customers from the transaction price in its contracts with customers. Accordingly, revenue from contracts with customers is net of sales-based taxes that are collected from customers and remitted to taxing authorities. Revenues are recognized when control of the promised goods are transferred to the customer, in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods promised within each contract and determines the performance obligations and assesses whether each promised good is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Under product sales contracts, the Company invoices customers for performance obligations that have been satisfied, at which point payment is unconditional. Accordingly, a product sales contract does not give rise to contract assets or liabilities under ASC 606. Shipping and handling costs are deemed to be fulfillment activities rather than a separate distinct performance obligation Revenue is recognized when obligations under the terms of a contract with a customer are satisfied; recognition generally occurs with the transfer of control at a point in time. The contract with the customer states the final terms of the sale, including the description, quantity and price of each product or service purchased. For fuel products, payment is typically due in full between 2 to 30 days of delivery or the start of the contract term, such that payment is typically collected 2 to 30 days subsequent to the satisfaction of performance obligations. For specialty products, payment is typically due in full between 30 to 90 days of delivery or the start of the contract term, such that payment is typically collected 30 to 90 days subsequent to the satisfaction of performance obligations. In the normal course of business, the Company does not accept product returns unless the item is defective as manufactured. The expected costs associated with a product assurance warranty continues to be recognized as expense when products are sold. The Company does not offer promised services that could be considered warranties that are sold separately or provide a service in addition to assurance that the related product complies with agreed upon specifications. The Company establishes provisions based on the methods described in ASC 606 for estimated returns and warranties as variable consideration when determining the transaction price. |
Inventories | Under the LIFO inventory method, the most recently incurred costs are charged to cost of sales and inventories are valued at the earliest acquisition costs. In addition, the use of the LIFO inventory method may result in increases or decreases to cost of sales in years that inventory volumes decline as the result of charging cost of sales with LIFO inventory costs generated in prior periods. In periods of rapidly declining prices, LIFO inventories may have to be written down to market value due to the higher costs assigned to LIFO layers in prior periods. Costs include crude oil and other feedstocks, labor, processing costs and refining overhead costs. Inventories are valued at the lower of cost or market value. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and costs and are subject to the final year-end LIFO inventory valuation. In certain circumstances, the Company may decide not to replenish inventory for certain products or product lines during an interim period, in which case, the Company may record interim LIFO adjustments during that period. |
Derivatives | To manage credit risk, the Company selects and periodically reviews counterparties based on credit ratings. The Company is exposed to price risks due to fluctuations in the price of crude oil, refined products (primarily in the Company’s fuel products segment), natural gas and precious metals. The Company uses various strategies to reduce its exposure to commodity price risk. The strategies to reduce the Company’s risk utilize both physical forward contracts and financially settled derivative instruments, such as swaps, collars, options and futures, to attempt to reduce the Company’s exposure with respect to: • crude oil purchases and sales; • fuel product sales and purchases; • natural gas purchases; • precious metals purchases; and • fluctuations in the value of crude oil between geographic regions and between the different types of crude oil such as New York Mercantile Exchange West Texas Intermediate (“NYMEX WTI”), Light Louisiana Sweet, Western Canadian Select (“WCS”), WTI Midland, Mixed Sweet Blend and ICE Brent. The Company manages its exposure to commodity markets, credit, volumetric and liquidity risks to manage its costs and volatility of cash flows as conditions warrant or opportunities become available. These risks may be managed in a variety of ways that may include the use of derivative instruments. Derivative instruments may be used for the purpose of mitigating risks associated with an asset, liability and anticipated future transactions and the changes in fair value of the Company’s derivative instruments will affect its earnings and cash flows; however, such changes should be offset by price or rate changes related to the underlying commodity or financial transaction that is part of the risk management strategy. The Company does not speculate with derivative instruments or other contractual arrangements that are not associated with its business objectives. Speculation is defined as increasing the Company’s natural position above the maximum position of its physical assets or trading in commodities, currencies or other risk bearing assets that are not associated with the Company’s business activities and objectives. The Company’s positions are monitored routinely by a risk management committee to ensure compliance with its stated risk management policy and documented risk management strategies. All strategies are reviewed on an ongoing basis by the Company’s risk management committee, which will add, remove or revise strategies in anticipation of changes in market conditions and/or its risk profiles. Such changes in strategies are to position the Company in relation to its risk exposures in an attempt to capture market opportunities as they arise. The Company is obligated to repurchase crude oil and refined products from Macquarie at the termination of the Supply and Offtake Agreements in certain scenarios. The Company has determined that the redemption feature on the initially recognized liability related to the Supply and Offtake Agreements is an embedded derivative indexed to commodity prices. As such, the Company has accounted for these embedded derivatives at fair value with changes in the fair value, if any, recorded in gain (loss) on derivative instruments in the Company’s unaudited condensed consolidated statements of operations. The Company recognizes all derivative instruments at their fair values (see Note 11 - “ Fair Value Measurements ”) as either current assets or current liabilities in the condensed consolidated balance sheets. Fair value includes any premiums paid or received and unrealized gains and losses. Fair value does not include any amounts receivable from or payable to counterparties, or collateral provided to counterparties. Derivative asset and liability amounts with the same counterparty are netted against each other for financial reporting purposes in accordance with the provisions of our master netting arrangements. In the event of default, the Company would potentially be subject to losses on derivative instruments with mark-to-market gains. The Company requires collateral from its counterparties when the fair value of the derivatives exceeds agreed-upon thresholds in its master derivative contracts with these counterparties. The cash flow impact of the Company’s derivative activities is classified primarily as a change in derivative activity in the operating activities section in the unaudited condensed consolidated statements of cash flows. Certain of the Company’s outstanding derivative instruments are subject to credit support agreements with the applicable counterparties which contain provisions setting certain credit thresholds above which the Company may be required to post agreed-upon collateral, such as cash or letters of credit, with the counterparty to the extent that the Company’s mark-to-market net liability, if any, on all outstanding derivatives exceeds the credit threshold amount per such credit support agreement. The majority of the credit support agreements covering the Company’s outstanding derivative instruments also contain a general provision stating that if the Company experiences a material adverse change in its business, in the reasonable discretion of the counterparty, the Company’s credit threshold could be lowered by such counterparty. For derivative instruments not designated as hedges, the change in fair value of the asset or liability for the period is recorded to gain (loss) on derivative instruments in the unaudited condensed consolidated statements of operations. Upon the settlement of a derivative not designated as a hedge, the gain or loss at settlement is recorded to gain (loss) on derivative instruments in the unaudited condensed consolidated statements of operations. The Company has entered into gasoline swaps, diesel swaps and certain crude oil basis swaps that do not qualify as cash flow hedges for accounting purposes as they were not entered into simultaneously with a corresponding NYMEX WTI derivative contract. However, these instruments provide economic hedges of the purchases and sales of the Company’s crude oil, gasoline and diesel. Collateral received from counterparties is reported in other current liabilities, and collateral held by counterparties is reported in prepaid expenses and other current assets on the Company’s condensed consolidated balance sheets and is not netted against derivative assets or liabilities. |
Fair Value Measurement | The estimated aggregate fair value of the Company’s senior notes defined as Level 1 was based upon quoted market prices in an active market. The carrying value of borrowings, if any, under the Company’s revolving credit facility, finance lease obligations and other obligations approximate their fair values as determined by discounted cash flows and are classified as Level 3. he Company uses a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. Observable inputs are from sources independent of the Company. Unobservable inputs reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. These tiers include the following: • Level 1 — inputs include observable unadjusted quoted prices in active markets for identical assets or liabilities • Level 2 — inputs include other than quoted prices in active markets that are either directly or indirectly observable • Level 3 — inputs include unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions In determining fair value, the Company uses various valuation techniques and prioritizes the use of observable inputs. The availability of observable inputs varies from instrument to instrument and depends on a variety of factors including the type of instrument, whether the instrument is actively traded and other characteristics particular to the instrument. For many financial instruments, pricing inputs are readily observable in the market, the valuation methodology used is widely accepted by market participants and the valuation does not require significant management judgment. For other financial instruments, pricing inputs are less observable in the marketplace and may require management judgment. Pension assets are reported at fair value in the accompanying unaudited condensed consolidated financial statements. At September 30, 2019 , the Company’s investments associated with its pension plan primarily consisted of mutual funds. The mutual funds are valued at the net asset value of shares in each fund held by the Pension Plan at quarter end as provided by the respective investment sponsors or investment advisers. Plan investments can be redeemed within a short time frame (approximately ten business days), if requested. Derivative instruments are reported in the accompanying unaudited condensed consolidated financial statements at fair value. The Company’s derivative instruments consist of over-the-counter contracts, which are not traded on a public exchange. To estimate the fair values of the Company’s commodity derivative instruments, the Company uses the forward rate, the strike price, contractual notional amounts, the risk-free rate of return and contract maturity. Various analytical tests are performed to validate the counterparty data. The fair values of the Company’s derivative instruments are adjusted for nonperformance risk and creditworthiness of the counterparty through the Company’s credit valuation adjustment (“CVA”). The CVA is calculated at the counterparty level utilizing the fair value exposure at each payment date and applying a weighted probability of the appropriate survival and marginal default percentages. The Company uses the counterparty’s marginal default rate and the Company’s survival rate when the Company is in a net asset position at the payment date and uses the Company’s marginal default rate and the counterparty’s survival rate when the Company is in a net liability position at the payment date. All settlements from derivative instruments not designated as hedges are recorded in gain (loss) on derivative instruments in the unaudited condensed consolidated statements of operations. The carrying value of cash and cash equivalents is each considered to be representative of its fair value. The Company’s RINs Obligation is categorized as Level 2 and is measured at fair value using the market approach based on quoted prices from an independent pricing service. Certain non-financial assets and liabilities are measured at fair value on a nonrecurring basis and are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment. Assets and liabilities acquired in business combinations are recorded at their fair value as of the date of acquisition. The Company reviews for goodwill impairment annually on October 1 and whenever events or changes in circumstances indicate its carrying value may not be recoverable. The fair value of the reporting units is determined using the income approach. The income approach focuses on the income-producing capability of an asset, measuring the current value of the asset by calculating the present value of its future economic benefits such as cash earnings, cost savings, corporate tax structure and product offerings. Value indications are developed by discounting expected cash flows to their present value at a rate of return that incorporates the risk-free rate for the use of funds, the expected rate of inflation and risks associated with the reporting unit. These assets would generally be classified within Level 3, in the event that the Company were required to measure and record such assets at fair value within its unaudited condensed consolidated financial statements. The Company periodically evaluates the carrying value of long-lived assets to be held and used, including definite-lived intangible assets and property, plant and equipment, when events or circumstances warrant such a review. Fair value is determined primarily using anticipated cash flows assumed by a market participant discounted at a rate commensurate with the risk involved and these assets would generally be classified within Level 3, the Company was required to measure and record such assets at fair value within its unaudited condensed consolidated financial statements. Observable inputs utilized to estimate the fair values of the Company’s derivative instruments were based primarily on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets. Based on the use of various unobservable inputs, principally non-performance risk, creditworthiness of the counterparties and unobservable inputs in the forward rate, the Company has categorized these derivative instruments as Level 3. Significant increases (decreases) in any of those unobservable inputs in isolation would result in a significantly lower (higher) fair value measurement. The Company believes it has obtained the most accurate information available for the types of derivative instruments it holds. Unit based compensation liability awards are awards that are expected to be settled in cash on their vesting dates, rather than in equity units (“Liability Awards”). The Liability Awards are categorized as Level 1 because the fair value of the Liability Awards is based on the Company’s quoted closing unit price as of each balance sheet date. |
Segment Reporting | The Company offers specialty products primarily in categories consisting of lubricating oils, solvents, waxes, synthetic lubricants and other products. Fuel products categories primarily consist of gasoline, diesel, jet fuel, asphalt and other products. The Company determines its reportable segments based on how the business is managed internally for the products sold to customers, including how results are reviewed and resources are allocated by the chief operating decision makers (“CODM”). The Company’s operations are managed by the CODM using the following reportable segments: • Specialty Products. The specialty products segment is the Company’s core business which produces a variety of lubricating oils, solvents, waxes, synthetic lubricants and other products which are sold to customers who purchase these products primarily as raw material components for basic automotive, industrial and consumer goods. Specialty products also include synthetic lubricants used in manufacturing, mining and automotive applications. • Fuel Products . The fuel products segment produces primarily gasoline, diesel, jet fuel, asphalt and other products which are primarily sold to customers located in the PADD 3 and PADD 4 areas within the U.S. • Corporate. The corporate segment primarily consists of general and administrative expenses not allocated to the Specialty Products or Fuel Products segments. During the third quarter of 2019 , the CODM changed how the Company assesses performance, allocates resources, and allocates certain costs. In response to those changes, a corporate segment was added. Prior to the third quarter of 2019, various pricing models were used in determining the calculation of intersegment sales. Beginning in the third quarter of 2019, all intersegment sales are calculated using market-based transfer pricing. Further, cost allocations were modified to conform to the new segment alignments. This change in management reporting has resulted in an increase in the inter-segment sales reported by the Company’s specialty products operating segment. Prior period amounts have been recast to conform with the current presentation. These changes in management reporting had no impact on consolidated revenue, segment reporting of external sales or consolidated Adjusted EBITDA. The accounting policies of the reporting segments are the same as those described in the summary of significant accounting policies as disclosed in Note 2 — “Summary of Significant Accounting Policies” in Part II, Item 8 “Financial Statements and Supplementary Data” of the Company’s 2018 Annual Report, except that the disaggregated financial results for the reporting segments have been prepared using a management approach, which is consistent with the basis and manner in which management internally disaggregates financial information for the purposes of assisting internal operating decisions. The Company accounts for intersegment sales and transfers using a market-based approach. The Company evaluates performance based upon Adjusted EBITDA (a non-GAAP financial measure). The Company defines Adjusted EBITDA for any period as EBITDA adjusted for (a) impairment; (b) unrealized gains and losses from mark to market accounting for hedging activities; (c) realized gains and losses under derivative instruments excluded from the determination of net income (loss); (d) non-cash equity-based compensation expense and other non-cash items (excluding items such as accruals of cash expenses in a future period or amortization of a prepaid cash expense) that were deducted in computing net income (loss); (e) debt refinancing fees, premiums and penalties; (f) any net loss realized in connection with an asset sale that was deducted in computing net income (loss) and (g) all extraordinary, unusual or non-recurring items of gain or loss, or revenue or expense. The Company manages its assets on a total company basis, not by segment. Therefore, management does not review any asset information by segment and, accordingly, the Company does not report asset information by segment. |
Revenue Recognition Shipping an
Revenue Recognition Shipping and Handling (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Revenue from Contract with Customer [Policy Text Block] | The Company may incur incremental costs to obtain a sales contract, which under ASC 606 should be capitalized and amortized over the life of the contract. The Company has elected to apply the practical expedient in ASC 340-40-50-5 allowing the Company to expense these costs since the contracts are short-term in nature with a contract term of one year or less. The Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with a customer. For each contract, the Company considers the promise to transfer products, each of which are distinct, to be the identified performance obligations. In determining the transaction price, the Company evaluates whether the price is subject to variable consideration such as product returns, rebates or other discounts to determine the net consideration to which the Company expects to be entitled. The Company transfers control and recognizes revenue upon shipment to the customer or, in certain cases, upon receipt by the customer in accordance with contractual terms. the Company collects and remits sales taxes associated with certain sales of its products to non-exempt customers. The Company excludes excise taxes and sales taxes that are collected from customers from the transaction price in its contracts with customers. Accordingly, revenue from contracts with customers is net of sales-based taxes that are collected from customers and remitted to taxing authorities. Revenues are recognized when control of the promised goods are transferred to the customer, in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods promised within each contract and determines the performance obligations and assesses whether each promised good is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Under product sales contracts, the Company invoices customers for performance obligations that have been satisfied, at which point payment is unconditional. Accordingly, a product sales contract does not give rise to contract assets or liabilities under ASC 606. Shipping and handling costs are deemed to be fulfillment activities rather than a separate distinct performance obligation Revenue is recognized when obligations under the terms of a contract with a customer are satisfied; recognition generally occurs with the transfer of control at a point in time. The contract with the customer states the final terms of the sale, including the description, quantity and price of each product or service purchased. For fuel products, payment is typically due in full between 2 to 30 days of delivery or the start of the contract term, such that payment is typically collected 2 to 30 days subsequent to the satisfaction of performance obligations. For specialty products, payment is typically due in full between 30 to 90 days of delivery or the start of the contract term, such that payment is typically collected 30 to 90 days subsequent to the satisfaction of performance obligations. In the normal course of business, the Company does not accept product returns unless the item is defective as manufactured. The expected costs associated with a product assurance warranty continues to be recognized as expense when products are sold. The Company does not offer promised services that could be considered warranties that are sold separately or provide a service in addition to assurance that the related product complies with agreed upon specifications. The Company establishes provisions based on the methods described in ASC 606 for estimated returns and warranties as variable consideration when determining the transaction price. |
Leases (Policies)
Leases (Policies) | 3 Months Ended | 9 Months Ended |
Mar. 31, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Lease, Implementation Method [Policy Text Block] | Effective January 1, 2019, the Company adopted ASU 2016-02 using a modified retrospective transition approach that applied the new standard to all leases existing at the effective date of the standard with no restatement of prior periods. | |
Lease, Package of Three, Practical Expedients [Policy Text Block] | Package of Three - The Company has elected that it will not reassess contracts that have expired or existed at the date of adoption for (1) leases under the new definition of a lease, (2) lease classification, and (3) whether previously capitalized initial direct costs would qualify for capitalization under ASC 842. | |
Lease, Practical Expedients, Package [true false] | true | |
Leases - Portfolio Approach [Policy Text Block] | Portfolio Approach - The Company elected to determine the discount rate used to measure lease liabilities at the portfolio level. Specifically, the Company segregated its leases into different populations based on lease term. | |
Short-term Leases [Policy Text Block] | The Company’s leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheets. | |
Lease, Discount Rate Election [Policy Text Block] | Discount Rate - The Company elected to apply the discount rate at transition based on the remaining lease term and lease payments rather than the original lease term and lease payments. As a majority of the Company’s leases do not provide an implicit rate, the Company used an incremental borrowing rate based on information available at the date of transition to determine the present value of lease payments. | |
Separation of Lease and Nonlease Components [Policy Text Block] | Lease/Non-Lease Components - The Company elected to not separate non-lease components. | |
Definition of Minimum Rental Payments [Policy Text Block] | Definition of Minimum Rental Payments - The Company elected to include executory costs as part of the minimum lease payments for purposes of measuring the lease liability and right-of-use asset at transition. | |
Leases, Land Easement Election [Policy Text Block] | Land Easement - The Company elected not to assess whether any land easements are, or contain, leases in accordance with ASC 842 when transitioning to the standard. |
Guarantor Disclosures Non-Guara
Guarantor Disclosures Non-Guarantor (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy [Policy Text Block] | The Company’s payment obligations under the 2021 Notes, 2022 Notes, and 2023 Notes are fully and unconditionally and jointly and severally guaranteed on a senior unsecured basis by the Company’s current 100%-owned operating subsidiaries and certain of the Company’s future operating subsidiaries (the “100% Owned Guarantor Subsidiaries”), except Calumet Finance Corp. (the “Co-Issuer”) and certain other subsidiaries of the Company that do not guarantee such indebtedness (the “Non-Guarantor Subsidiaries”). The following unaudited condensed consolidating financial information presents the financial condition, results of operations and cash flows of Calumet Specialty Products Partners, L.P., the Co-Issuer, the 100% Owned Guarantor Subsidiaries, and the Non-Guarantor Subsidiaries, with the consolidating eliminations necessary to present the Company’s results on a consolidated basis. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Other Current Liabilities [Table Text Block] | Other current liabilities consisted of the following (in millions): September 30, 2019 December 31, 2018 RINs Obligation $ 14.4 $ 15.8 Other (1) 56.0 18.0 Total $ 70.4 $ 33.8 (1) Balance as of September 30, 2019 includes $38.1 million related to the reclassification of the present value of the TexStar finance lease obligation in the first quarter of 2019 from current and long-term debt to other current liabilities. See Note 7 - “ Commitments and Contingencies ” for further information. |
Revenue Recognition Revenue R_2
Revenue Recognition Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table reflects the disaggregation of revenue by major source (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Sales by major source Standard specialty products $ 296.2 $ 285.2 $ 872.2 $ 848.7 Packaged and synthetic specialty products 59.6 64.0 180.2 204.9 Total specialty products $ 355.8 $ 349.2 $ 1,052.4 $ 1,053.6 Fuel and fuel related products $ 508.4 $ 525.9 $ 1,446.3 $ 1,422.2 Asphalt 65.4 78.4 179.1 173.7 Total fuel products $ 573.8 $ 604.3 $ 1,625.4 $ 1,595.9 Total sales $ 929.6 $ 953.5 $ 2,677.8 $ 2,649.5 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories consist of the following (in millions): September 30, 2019 December 31, 2018 Titled Inventory Supply and Offtake Agreements (1) Total Titled Inventory Supply and Offtake Agreements (1) Total Raw materials $ 43.9 $ 14.7 $ 58.6 $ 41.8 $ 10.6 $ 52.4 Work in process 37.0 32.7 69.7 40.7 19.2 59.9 Finished goods 112.1 52.9 165.0 127.9 43.9 171.8 $ 193.0 $ 100.3 $ 293.3 $ 210.4 $ 73.7 $ 284.1 (1) Amounts represent LIFO value and do not necessarily represent the value of product financing. Refer to Note 8 - “Inventory Financing Agreements” for further information. |
Discontinued Operations Disco_2
Discontinued Operations Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | The following table summarizes the results of discontinued operations for the periods presented (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2018 Other (0.5 ) (3.1 ) Net loss from discontinued operations net of income taxes $ (0.5 ) $ (3.1 ) |
Investment in Unconsolidated _2
Investment in Unconsolidated Affiliates Investment in Unconsolidated Affiliates (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in unconsolidated affiliates | The following table summarizes the Company’s investments in unconsolidated affiliates (in millions): September 30, 2019 December 31, 2018 Fluid Holding Corp. 5.7 25.4 Total $ 5.7 $ 25.4 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Instrument [Line Items] | |
Summary of Long-Term Debt | Long-term debt consisted of the following (in millions): September 30, 2019 December 31, 2018 Borrowings under third amended and restated senior secured revolving credit agreement with third-party lenders, interest payments quarterly, borrowings due February 2023, weighted average interest rate of 0.2% and 6.0% for the nine months ended September 30, 2019 and year ended December 31, 2018, respectively. $ — $ — Borrowings under 2021 Notes, interest at a fixed rate of 6.50%, interest payments semiannually, borrowings due April 2021, effective interest rate of 6.8% for each of the nine months ended September 30, 2019 and the year ended December 31, 2018. 761.2 900.0 Borrowings under 2022 Notes, interest at a fixed rate of 7.625%, interest payments semiannually, borrowings due January 2022, effective interest rate of 8.1% and 8.0% for the nine months ended September 30, 2019 and the year ended December 31, 2018, respectively. (1) 351.2 351.6 Borrowings under 2023 Notes, interest at a fixed rate of 7.75%, interest payments semiannually, borrowings due April 2023, effective interest rate of 8.1% and 8.0% for the nine months ended September 30, 2019 and the year ended December 31, 2018, respectively. 325.0 325.0 Other 4.1 5.2 Finance lease obligations, at various interest rates, interest and monthly principal payments (3) 2.8 42.4 Less unamortized debt issuance costs (2) (11.5 ) (15.8 ) Less unamortized discounts (3.1 ) (3.9 ) Total long-term debt $ 1,429.7 $ 1,604.5 Less current portion of long-term debt (4) 123.5 3.8 $ 1,306.2 $ 1,600.7 (1) The balance includes a fair value interest rate hedge adjustment, which increased the debt balance by $1.2 million and $1.6 million as of September 30, 2019 and December 31, 2018 , respectively. (2) Deferred debt issuance costs are being amortized by the effective interest rate method over the lives of the related debt instruments. These amounts are net of accumulated amortization of $27.7 million and $23.5 million at September 30, 2019 and December 31, 2018 , respectively. |
Summary of Principal Payments on Debt Obligations and Future Minimum Rentals on Capital Lease Obligations | As of September 30, 2019 , principal payments on debt obligations and future minimum rentals on finance lease obligations are as follows (in millions): Year Maturity 2019 $ 122.1 2020 1.8 2021 642.1 2022 350.3 2023 325.4 Thereafter 1.4 Total $ 1,443.1 |
Long-Term Debt Quarterly Averag
Long-Term Debt Quarterly Average Availability Percentage (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Instrument Basis Spread [Table Text Block] | The margin can fluctuate quarterly based on the Company’s average availability for additional borrowings under the revolving credit facility in the preceding calendar quarter as follows: Base Loans FILO Loans Quarterly Average Availability Percentage Prime Rate Margin LIBOR Rate Margin Prime Rate Margin LIBOR Rate Margin ≥ 66% 0.50% 1.50% 1.50% 2.50% ≥ 33% and < 66% 0.75% 1.75% 1.75% 2.75% < 33% 1.00% 2.00% 2.00% 3.00% |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative [Line Items] | |
Summary of Gross Fair Values of Derivative Instruments, Presenting the Impact of Offsetting Derivative Assets | The following tables summarize the Company’s gross fair values of its derivative instruments, presenting the impact of offsetting derivative assets in the Company’s condensed consolidated balance sheets (in millions): September 30, 2019 December 31, 2018 Balance Sheet Location Gross Amounts of Recognized Assets Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets Gross Amounts of Recognized Assets Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets Derivative instruments not designated as hedges: Specialty products segment: Midland crude oil basis swaps Derivative assets $ — $ — $ — $ 1.0 $ — $ 1.0 Fuel products segment: Inventory financing obligation Obligations under inventory financing agreements $ 1.5 $ (1.5 ) $ — $ 1.5 $ — $ 1.5 WCS crude oil basis swaps Derivative assets — — — 16.5 (1.6 ) 14.9 WCS crude oil percentage basis swaps Derivative assets 2.4 (2.4 ) — — (6.1 ) (6.1 ) Midland crude oil basis swaps Derivative assets — — — 7.1 — 7.1 Gasoline crack spread swaps Derivative assets 0.2 (0.1 ) 0.1 — — — Diesel crack spread swap Derivative assets 0.2 — 0.2 7.4 — 7.4 Diesel percentage basis crack spread swap Derivative assets 1.2 (1.0 ) 0.2 — (6.0 ) (6.0 ) 2/1/1 Crack spread swap Derivative assets 0.3 — 0.3 — — — Total derivative instruments $ 5.8 $ (5.0 ) $ 0.8 $ 33.5 $ (13.7 ) $ 19.8 |
Summary of Gross Fair Values of Derivative Instruments, Presenting the Impact of Offsetting Derivative Liabilities | The following tables summarize the Company’s gross fair values of its derivative instruments, presenting the impact of offsetting derivative liabilities in the Company’s condensed consolidated balance sheets (in millions): September 30, 2019 December 31, 2018 Balance Sheet Location Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Condensed Consolidated Balance Sheets Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets Derivative instruments not designated as hedges: Fuel products segment: Inventory financing obligation Obligations under inventory financing agreements $ (2.7 ) $ 1.5 (1.2 ) $ — $ — $ — WCS crude oil basis swaps Derivative liabilities — — — (1.6 ) 1.6 — WCS crude oil percentage basis swaps Derivative liabilities (2.4 ) 2.4 — (6.1 ) 6.1 — Gasoline crack spread swaps Derivative liabilities (0.1 ) 0.1 — — — — Diesel percentage basis crack spread swaps Derivative liabilities (1.0 ) 1.0 — (6.0 ) 6.0 — Total derivative instruments $ (6.2 ) $ 5.0 $ (1.2 ) $ (13.7 ) $ 13.7 $ — |
Commodity Contract | Not Designated as Hedging Instrument [Member] | |
Derivative [Line Items] | |
Schedule of Derivative Instruments | The Company recorded the following gains (losses) in its unaudited condensed consolidated statements of operations, related to its derivative instruments not designated as hedges (in millions): Type of Derivative Amount of Realized Gain (Loss) Recognized in Gain (Loss) on Derivative Instruments Amount of Unrealized Gain (Loss) Recognized in Gain (Loss) on Derivative Instruments Three Months Ended September 30, Three Months Ended September 30, 2019 2018 2019 2018 Fuel products segment: Inventory financing obligation — — (5.5 ) (9.4 ) WCS crude oil basis swaps — 0.4 — (3.4 ) WCS crude oil percentage basis swaps 0.1 — (0.3 ) (4.1 ) Midland crude oil basis swaps — (1.2 ) — 10.1 Gasoline swaps — — 0.1 — 2/1/1 Crack spread swaps — — 0.3 — Diesel crack spread swaps 0.3 0.5 0.2 (0.8 ) Diesel percentage basis crack spread swaps — — (0.2 ) 5.2 Total $ 0.4 $ (0.3 ) $ (5.4 ) $ (2.4 ) The Company recorded the following gains (losses) in its unaudited condensed consolidated statements of operations for the nine months ended September 30, 2019 and 2018 , related to its derivative instruments not designated as hedges (in millions): Type of Derivative Amount of Realized Gain (Loss) Recognized in Gain (Loss) on Derivative Instruments Amount of Unrealized Gain (Loss) Recognized in Gain (Loss) on Derivative Instruments Nine Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Specialty products segment: Midland crude oil basis swaps 1.6 — (1.0 ) — Fuel products segment: Inventory financing obligation — — (2.7 ) (16.3 ) Crude oil swaps — — — (0.3 ) WCS crude oil basis swaps 17.1 0.4 (14.9 ) (2.8 ) WCS crude oil percentage basis swaps 1.0 — 6.0 (4.9 ) Midland crude oil basis swaps 9.0 (1.2 ) (7.1 ) 13.0 Gasoline swaps — — 0.1 0.2 Gasoline crack spread swaps — (1.0 ) — 1.8 2/1/1 Crack spread swaps — — 0.3 — Diesel swaps — — — 0.2 Diesel crack spread swaps 6.4 (0.6 ) (7.2 ) 5.1 Diesel percentage basis crack spread swaps (0.5 ) — 6.3 4.4 Total $ 34.6 $ (2.4 ) $ (20.2 ) $ 0.4 |
WCS crude oil basis swaps | Fuel Product [Member] | |
Derivative [Line Items] | |
Schedule of Derivative Positions | At September 30, 2019, the Company had no derivatives related to either WCS crude oil basis purchases or sales in its fuel products segment, as all positions outstanding at December 31, 2018 were settled during 2019. At December 31, 2018 , the Company had the following derivatives related to WCS crude oil basis purchases in its fuel products segment, none of which are designated as hedges: WCS Crude Oil Basis Swap Contracts by Expiration Dates Barrels Purchased BPD Average Differential to NYMEX WTI ($/Bbl) First Quarter 2019 419,000 4,656 $ (28.10 ) Second Quarter 2019 455,000 5,000 $ (28.22 ) Third Quarter 2019 460,000 5,000 $ (28.22 ) Fourth Quarter 2019 460,000 5,000 $ (28.22 ) Total 1,794,000 Average price $ (28.19 ) |
WCS Crude Oil Basis Swaps Sales [Member] | Fuel Product [Member] | |
Derivative [Line Items] | |
Schedule of Derivative Positions | At December 31, 2018 , the Company had the following derivatives related to WCS crude oil basis sales in its fuel products segment, none of which are designated as hedges: WCS Crude Oil Basis Swap Contracts by Expiration Dates Barrels Sold BPD Average Differential to NYMEX WTI ($/Bbl) First Quarter 2019 388,000 4,311 $ (19.84 ) Second Quarter 2019 455,000 5,000 $ (19.84 ) Third Quarter 2019 460,000 5,000 $ (19.84 ) Fourth Quarter 2019 460,000 5,000 $ (19.84 ) Total 1,763,000 Average price $ (19.84 ) |
Diesel crack spread swaps | Fuel Product [Member] | |
Derivative [Line Items] | |
Schedule of Derivative Positions | Diesel Crack Spread Swap Contracts by Expiration Dates Barrels Sold BPD Average Swap Fourth Quarter 2019 62,000 674 $ 22.18 First Quarter 2020 136,500 1,500 $ 22.91 Second Quarter 2020 60,000 659 $ 23.10 Total 258,500 Average price $ 22.78 At December 31, 2018 , the Company had the following derivatives related to diesel crack spread sales in its fuel products segment, none of which are designated as hedges: Diesel Crack Spread Swap Contracts by Expiration Dates Barrels Sold BPD Average Swap First Quarter 2019 450,000 5,000 $ 25.58 Second Quarter 2019 455,000 5,000 $ 25.58 Third Quarter 2019 460,000 5,000 $ 25.58 Fourth Quarter 2019 460,000 5,000 $ 25.58 Total 1,825,000 Average price $ 25.58 |
Diesel percentage basis crack spread swaps | Fuel Product [Member] | |
Derivative [Line Items] | |
Schedule of Derivative Positions | At December 31, 2018 , the Company had the following derivatives related to diesel percent basis crack spread swap sales and no derivatives related to diesel percent basis crack spread swap purchases in its fuel products segment, none of which are designated as hedges: Diesel Percentage Basis Crack Spread Swap Contracts by Expiration Dates Barrels Sold BPD Fixed Percentage of NYMEX WTI First Quarter 2019 450,000 5,000 138.38 % Second Quarter 2019 455,000 5,000 138.38 % Third Quarter 2019 460,000 5,000 138.38 % Fourth Quarter 2019 460,000 5,000 138.38 % Total 1,825,000 Average percentage 138.38 % The Company has entered into diesel crack spread derivative instruments to secure a fixed percentage of gross profit on diesel in excess of the floating value of NYMEX WTI crude oil. At September 30, 2019 , the Company had the following derivatives related to diesel percent basis crack spread swap sales in its fuel products segment, none of which are designated as hedges: Diesel Percentage Basis Crack Spread Swap Contracts by Expiration Dates Barrels Sold BPD Fixed Percentage of NYMEX WTI Fourth Quarter 2019 460,000 5,000 138.38 % Total 460,000 Average percentage 138.38 % At September 30, 2019 , the Company had the following derivatives related to diesel percentage basis swap purchases in its fuel products segment, none of which are designated as hedges: Diesel Percentage Basis Crack Spread Swap Contracts by Expiration Dates Barrels Purchased BPD Fixed Percentage of NYMEX WTI Fourth Quarter 2019 460,000 5,000 137.37 % Total 460,000 Average percentage 137.37 % |
Midland crude oil basis swap purchases [Member] | Fuels and Specialty [Member] | |
Derivative [Line Items] | |
Schedule of Derivative Positions | The Company had no crude oil basis swaps to mitigate the risk of future changes in pricing differentials between WTI Midland and NYMEX WTI as of September 30, 2019 . At December 31, 2018 , the Company had the following derivatives related to Midland crude oil basis swaps in its fuel products segment, none of which are designated as hedges: Midland Crude Oil Basis Swap Contracts by Expiration Dates Barrels Purchased BPD Average Differential to NYMEX WTI ($/Bbl) First Quarter 2019 501,500 5,572 $ (12.79 ) Second Quarter 2019 773,500 8,500 $ (11.74 ) Total 1,275,000 Average price $ (12.27 ) |
WCS crude oil percentage basis swap | Fuel Product [Member] | |
Derivative [Line Items] | |
Schedule of Derivative Positions | At December 31, 2018 , the Company had the following derivatives related to crude oil percentage basis swap purchases in its fuel products segment, none of which are designated as hedges: WCS Crude Oil Percentage Basis Swap Contracts by Expiration Dates Barrels Purchased BPD Fixed Percentage of NYMEX WTI First Quarter 2019 450,000 5,000 66.32 % Second Quarter 2019 455,000 5,000 66.32 % Third Quarter 2019 460,000 5,000 66.32 % Fourth Quarter 2019 460,000 5,000 66.32 % Total 1,825,000 Average percentage 66.32 % At December 31, 2018 , the Company had no derivatives related to crude oil percentage basis swap sales in its fuel products segment. At September 30, 2019 , the Company had the following derivatives related to crude oil percentage basis swap purchases in its fuel products segment, none of which are designated as hedges: WCS Crude Oil Percentage Basis Swap Contracts by Expiration Dates Barrels Purchased BPD Fixed Percentage of NYMEX WTI Fourth Quarter 2019 460,000 5,000 66.32 % Total 460,000 Average percentage 66.32 % At September 30, 2019 , the Company had the following derivatives related to crude oil percentage basis swap sales in its fuel products segment, none of which are designated as hedges: WCS Crude Oil Percentage Basis Swap Contracts by Expiration Dates Barrels Sold BPD Fixed Percentage of NYMEX WTI Fourth Quarter 2019 460,000 5,000 66.16 % Total 460,000 Average percentage 66.16 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Recurring Assets and Liabilities Measured at Fair Value | The Company’s recurring assets and liabilities measured at fair value were as follows (in millions): September 30, 2019 December 31, 2018 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Derivative assets: Gasoline crack spread swaps $ — $ — $ 0.1 $ 0.1 $ — $ — $ — $ — Inventory financing obligation — — — — — — 1.5 1.5 Diesel crack spread swaps — — 0.2 0.2 — — 7.4 7.4 Diesel percentage basis crack spread swaps — — 0.2 0.2 — — (6.0 ) (6.0 ) 2/1/1 Crack spread swap — — 0.3 0.3 — — — — WCS crude oil basis swaps — — — — — — 14.9 14.9 WCS crude oil percentage basis swaps — — — — — — (6.1 ) (6.1 ) Midland crude oil basis swaps — — — — — — 8.1 8.1 Total derivative assets $ — $ — $ 0.8 $ 0.8 $ — $ — $ 19.8 $ 19.8 Pension plan investments — — — — 0.1 — — 0.1 Total recurring assets at fair value $ — $ — $ 0.8 $ 0.8 $ 0.1 $ — $ 19.8 $ 19.9 Liabilities: Derivative liabilities: Inventory financing obligation $ — $ — $ (1.2 ) $ (1.2 ) $ — $ — $ — $ — Total derivative liabilities — — (1.2 ) (1.2 ) — — — — RINs Obligation — (14.4 ) — (14.4 ) — (15.8 ) — (15.8 ) Liability Awards (6.8 ) — — (6.8 ) (2.7 ) — — (2.7 ) Total recurring liabilities at fair value $ (6.8 ) $ (14.4 ) $ (1.2 ) $ (22.4 ) $ (2.7 ) $ (15.8 ) $ — $ (18.5 ) |
Summary of Net Changes in Fair Value of the Company's Level 3 Financial Assets and Liabilities | The table below sets forth a summary of net changes in fair value of the Company’s Level 3 financial assets and liabilities (in millions): Nine Months Ended September 30, 2019 2018 Fair value at January 1, $ 19.8 $ (10.4 ) Realized (gain) loss on derivative instruments (34.6 ) 2.4 Unrealized gain (loss) on derivative instruments (20.2 ) 0.4 Settlements 34.6 (2.4 ) Fair value at September 30, $ (0.4 ) $ (10.0 ) Total gain (loss) included in net loss attributable to changes in unrealized gain (loss) relating to financial assets and liabilities held as of September 30, $ (20.2 ) $ 0.4 |
Summary of the Company's Carrying and Estimated Fair Value of the Company's Financial Instruments, Carried at Adjusted Historical Cost | The Company’s carrying and estimated fair value of the Company’s financial instruments, carried at adjusted historical cost were as follows (in millions): September 30, 2019 December 31, 2018 Level Fair Value Carrying Value Fair Value Carrying Value Financial Instrument: Senior notes 1 $ 1,400.4 $ 1,425.9 $ 1,287.4 $ 1,560.7 Finance lease and other obligations 3 $ 6.9 $ 6.9 $ 47.6 $ 47.6 |
Earnings Per Unit (Tables)
Earnings Per Unit (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Unit [Abstract] | |
Summary of Computation of Basic and Diluted Earnings Per Limited Partner Unit | The following table sets forth the computation of basic and diluted earnings per limited partner unit (in millions, except unit and per unit data): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Numerator for basic and diluted earnings per limited partner unit: Net loss from continuing operations $ (4.6 ) $ (16.0 ) $ (5.0 ) $ (70.1 ) Less: General partner’s interest in net loss from continuing operations (0.1 ) (0.3 ) (0.1 ) (1.4 ) Net loss from continuing operations available to limited partners $ (4.5 ) $ (15.7 ) $ (4.9 ) $ (68.7 ) Net loss from discontinued operations available to limited partners — (0.4 ) — (3.0 ) Net loss available to limited partners $ (4.5 ) $ (16.1 ) $ (4.9 ) $ (71.7 ) Denominator for basic and diluted earnings per limited partner unit: Weighted average limited partner units outstanding (1) 78,299,472 77,783,879 78,174,976 77,643,006 Limited partners’ interest basic and diluted net loss per unit: From continuing operations $ (0.06 ) $ (0.20 ) $ (0.06 ) $ (0.88 ) From discontinued operations — (0.01 ) — (0.04 ) Limited partners’ interest $ (0.06 ) $ (0.21 ) $ (0.06 ) $ (0.92 ) (1) Total diluted weighted average limited partner units outstanding excludes 0.1 million for the three and nine months ended September 30, 2019 and 0.2 million for the three and nine months ended September 30, 2018 , consisting of unvested phantom units. |
Segments and Related Informat_2
Segments and Related Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segment Information | Three Months Ended September 30, 2019 Specialty Products Fuel Products Corporate Eliminations Consolidated Total Sales: External customers $ 355.8 $ 573.8 $ — $ — $ 929.6 Intersegment sales 19.8 14.3 — (34.1 ) — Total sales $ 375.6 $ 588.1 $ — $ (34.1 ) $ 929.6 Adjusted EBITDA $ 52.5 $ 44.1 $ (23.1 ) $ — $ 73.5 Reconciling items to net loss: Depreciation and amortization 12.9 18.6 2.0 — 33.5 Other non-recurring expenses — — — — 1.3 Unrealized loss on derivatives 5.4 Interest expense 33.8 Loss on impairment and disposal of fixed assets 3.2 Equity based compensation and other items 0.4 Income tax expense 0.5 Net loss from continuing operations $ (4.6 ) Three Months Ended September 30, 2018 Specialty Products Fuel Products Corporate Eliminations Consolidated Total Sales: External customers $ 349.2 $ 604.3 $ — $ — $ 953.5 Intersegment sales 24.1 20.9 — (45.0 ) — Total sales $ 373.3 $ 625.2 $ — $ (45.0 ) $ 953.5 Adjusted EBITDA $ 36.6 $ 41.9 $ (24.0 ) $ 54.5 Reconciling items to net loss: Depreciation and amortization 12.1 18.1 2.1 — 32.3 Realized loss on derivatives, not reflected in net loss or settled in a prior period 0.1 0.6 — — 0.7 Unrealized loss on derivatives 2.4 Interest expense 37.7 Equity based compensation and other items (3.0 ) Income tax expense 0.4 Net loss from continuing operations $ (16.0 ) Reportable segment information for the nine months ended September 30, 2019 and 2018 , is as follows (in millions): Nine Months Ended September 30, 2019 Specialty Products Fuel Products Corporate Eliminations Consolidated Total Sales: External customers $ 1,052.4 $ 1,625.4 $ — $ 2,677.8 Intersegment sales 67.0 37.7 — (104.7 ) — Total sales $ 1,119.4 $ 1,663.1 $ — $ (104.7 ) $ 2,677.8 Income from unconsolidated affiliates $ 3.8 $ — $ 3.8 Adjusted EBITDA $ 171.3 $ 155.5 $ (76.0 ) $ 250.8 Reconciling items to net loss: Depreciation and amortization 36.6 56.8 5.7 99.1 Other non-recurring expenses — — — 1.3 Gain on sale of unconsolidated affiliate (1.2 ) — — (1.2 ) Unrealized loss on derivatives 20.2 Interest expense 99.2 Gain on debt extinguishment (0.7 ) Loss on impairment and disposal of fixed assets 31.1 Equity based compensation and other items 6.1 Income tax expense 0.7 Net loss from continuing operations $ (5.0 ) Nine Months Ended September 30, 2018 Specialty Products Fuel Products Corporate Eliminations Consolidated Total Sales: External customers $ 1,053.6 $ 1,595.9 $ — $ — $ 2,649.5 Intersegment sales 67.8 46.8 — (114.6 ) — Total sales $ 1,121.4 $ 1,642.7 $ — $ (114.6 ) $ 2,649.5 Loss from unconsolidated affiliates $ (3.7 ) $ — $ — $ (3.7 ) Adjusted EBITDA $ 129.3 $ 155.3 $ (74.4 ) $ — $ 210.2 Reconciling items to net loss: Depreciation and amortization 37.5 53.4 6.6 — 97.5 Realized loss on derivatives, not reflected in net loss or settled in a prior period 0.5 2.3 — — 2.8 Unrealized gain on derivatives (0.4 ) Interest expense 120.4 Loss on debt extinguishment 58.8 Equity based compensation and other items 0.2 Income tax expense 1.0 Net loss from continuing operations $ (70.1 ) |
Schedule of Major Product Category Sales | Nine Months Ended September 30, 2019 2018 Specialty products: Lubricating oils $ 460.7 17.2 % $ 448.3 16.9 % Solvents 254.2 9.5 % 254.3 9.6 % Waxes 92.6 3.5 % 87.8 3.3 % Packaged and synthetic specialty products 180.2 6.7 % 204.9 7.8 % Other 64.7 2.4 % 58.3 2.2 % Total $ 1,052.4 39.3 % $ 1,053.6 39.8 % Fuel products: Gasoline $ 530.9 19.8 % $ 528.8 20.0 % Diesel 669.4 25.0 % 681.5 25.7 % Jet fuel 100.8 3.8 % 78.9 3.0 % Asphalt, heavy fuel oils and other 324.3 12.1 % 306.7 11.5 % Total $ 1,625.4 60.7 % $ 1,595.9 60.2 % Consolidated sales $ 2,677.8 100.0 % $ 2,649.5 100.0 % The following table sets forth the major product category sales for each of the Specialty products and Fuel products segments for the three months ended September 30, 2019 and 2018 (dollars in millions): Three Months Ended September 30, 2019 2018 Specialty products: Lubricating oils $ 156.1 16.8 % $ 146.6 15.4 % Solvents 86.1 9.3 % 88.3 9.3 % Waxes 30.1 3.2 % 30.1 3.2 % Packaged and synthetic specialty products 59.6 6.4 % 64.0 6.6 % Other 23.9 2.6 % 20.2 2.1 % Total $ 355.8 38.3 % $ 349.2 36.6 % Fuel products: Gasoline $ 189.5 20.4 % $ 191.2 20.1 % Diesel 225.4 24.2 % 257.5 27.0 % Jet fuel 39.5 4.2 % 28.1 2.9 % Asphalt, heavy fuel oils and other 119.4 12.8 % 127.5 13.4 % Total $ 573.8 61.7 % $ 604.3 63.4 % Consolidated sales $ 929.6 100.0 % $ 953.5 100.0 % The following table sets forth the major product category sales for the nine months ended September 30, 2019 and 2018 (dollars in millions): Nine Months Ended September 30, 2019 2018 Specialty products: Lubricating oils $ 460.7 17.2 % $ 448.3 16.9 % Solvents 254.2 9.5 % 254.3 9.6 % Waxes 92.6 3.5 % 87.8 3.3 % Packaged and synthetic specialty products 180.2 6.7 % 204.9 7.8 % Other 64.7 2.4 % 58.3 2.2 % Total $ 1,052.4 39.3 % $ 1,053.6 39.8 % Fuel products: Gasoline $ 530.9 19.8 % $ 528.8 20.0 % Diesel 669.4 25.0 % 681.5 25.7 % Jet fuel 100.8 3.8 % 78.9 3.0 % Asphalt, heavy fuel oils and other 324.3 12.1 % 306.7 11.5 % Total $ 1,625.4 60.7 % $ 1,595.9 60.2 % Consolidated sales $ 2,677.8 100.0 % $ 2,649.5 100.0 % |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases, Weighted Average Lease Term and Discount Rate [Table Text Block] | The weighted-average remaining lease term and weighted-average discount rate for the Company’s operating and finance leases were as follows: September 30, 2019 Lease Term and Discount Rate: Weighted-average remaining lease term (years): Operating leases 2.6 Finance leases 7.3 Weighted-average discount rate: Operating leases 7.3 % Finance leases 8.8 % |
Leases - Maturity of Lease Liabilities [Table Text Block] | As of September 30, 2019 , the Company had estimated minimum commitments for the payment of rentals under leases which, at inception, had a noncancelable term of more than one year, as follows (in millions): Maturity of Lease Liabilities Operating Leases (1) Finance Leases (2) Total 2019 $ 17.3 $ 0.1 $ 17.4 2020 65.8 0.5 66.3 2021 14.6 0.5 15.1 2022 10.3 0.5 10.8 2023 6.9 0.5 7.4 Thereafter 7.2 1.6 8.8 Total $ 122.1 $ 3.7 $ 125.8 Less: Interest 10.9 0.9 11.8 Present value of lease liabilities $ 111.2 $ 2.8 $ 114.0 (1) As of September 30, 2019 , the Company’s operating lease payments included no material options to extend lease terms that are reasonably certain of being exercised. The Company has no legally binding minimum lease payments for leases signed but not yet commenced as of September 30, 2019 . (2) As of September 30, 2019 , the Company’s finance lease payments included no material options to extend lease terms that are reasonably certain of being exercised. In addition, the Company has no legally binding minimum lease payments for leases that have been signed but not yet commenced as of September 30, 2019 . |
Lease, Schedule of Lease Assets and Liabilities [Table Text Block] | Supplemental balance sheet information related to the Company’s leases as of September 30, 2019 , were as follows (in millions): September 30, 2019 Assets: Classification: Operating lease assets Operating lease right-of-use assets (2) $ 110.5 Finance lease assets Property, plant and equipment, net (1) 3.2 Total leased assets $ 113.7 Liabilities: Current Operating Current portion of operating lease liabilities (2) $ 62.3 Finance Current portion of long-term debt 0.3 Non-current Operating Long-term operating lease liabilities (2) 48.9 Finance Long term debt, less current portion 2.5 Total lease liabilities $ 114.0 (1) Finance lease assets are recorded net of accumulated amortization of $7.1 million as of September 30, 2019 . (2) In the third quarter of 2019 , the Company had additions to its operating lease right of use assets and operating lease liabilities of approximately $2.7 million . |
Lease, Cost [Table Text Block] | The components of lease expense related to the Company’s leases for the three and nine months ended September 30, 2019 were as follows (in millions). Three Months Ended Nine Months Ended Lease Costs: Classification: September 30, 2019 Fixed operating lease cost Cost of Sales; SG&A Expenses $ 16.7 $ 50.4 Short-term operating lease cost (1) Cost of Sales; SG&A Expenses 2.2 5.6 Variable operating lease cost (2) (3) Cost of Sales; SG&A Expenses 0.4 1.1 Finance lease cost: Amortization of right-of-use asset Cost of Sales 0.4 1.1 Interest on lease liabilities Interest expense 0.2 1.3 Total lease cost $ 19.9 $ 59.5 (1) The Company’s leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheets. (2) Approximately $0.5 million of the Company’s variable operating lease cost for the nine months ended September 30, 2019 relates to its lease agreement with Phillips 66 related to the LVT unit at its Lake Charles, Louisiana refinery (“the LVT Agreement”). Pursuant to the LVT Agreement, Phillips 66 is obligated to supply a minimum supply quantity which the Company agrees to purchase through December 31, 2020. Pricing for the agreement is indexed to the prior month’s average of Platts Mid USGC 55 Grade Jet Kero price on the day of loading plus an adder. Phillips 66 invoices the Company for the estimated volume of product to be purchased by the Company based on a supplied forecast and differences between actual volumes purchased and the estimated volume of product originally billed makes up the variable component of the operating lease contract. There were no variable operating lease costs related the LVT Agreement for the three months ended September 30, 2019 (3) The Company’s railcar leases typically include a mileage limit the railcar can travel over the life of the lease. For any mileage incurred over this limit, the Company is obligated to pay an agreed upon dollar value for each mile that is traveled over the limit. |
Subsequent Events (Tables)
Subsequent Events (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Event [Line Items] | |
Subsequent Event, Pro Forma Business Combinations or Disposals [Text Block] | Major categories of assets and liabilities at their carrying values to be disposed of as of September 30, 2019 consist of the following (in millions). September 30, 2019 ($ in millions) (Unaudited) ASSETS Current assets: Accounts receivable, net $ 17.8 Inventories 9.7 Prepaid expenses and other current assets 5.4 Total current assets 32.9 Property, plant and equipment, net 80.8 Operating lease right-of-use assets 1.6 Other noncurrent assets, net 4.3 Total assets $ 119.6 LIABILITIES AND PARTNERS’ CAPITAL Current liabilities: Accounts payable $ 46.7 Accrued salaries, wages and benefits 0.2 Other taxes payable 4.4 Other current liabilities 38.2 Current portion of operating lease liabilities 0.7 Total current liabilities 90.2 Long-term operating lease liabilities 1.3 Total liabilities $ 91.5 Commitments and contingencies Total partners’ capital 28.1 Total liabilities and partners’ capital $ 119.6 |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The Company’s carrying and estimated fair value of the Company’s financial instruments, carried at adjusted historical cost were as follows (in millions): September 30, 2019 December 31, 2018 Level Fair Value Carrying Value Fair Value Carrying Value Financial Instrument: Senior notes 1 $ 1,400.4 $ 1,425.9 $ 1,287.4 $ 1,560.7 Finance lease and other obligations 3 $ 6.9 $ 6.9 $ 47.6 $ 47.6 |
Description of the Business - N
Description of the Business - Narrative (Details) - shares | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Limited Partner | ||
Schedule of Capitalization, Equity [Line Items] | ||
Limited partner common units outstanding | 77,556,190 | 77,177,159 |
Limited partners ownership | 98.00% | |
General Partner | ||
Schedule of Capitalization, Equity [Line Items] | ||
General partner equivalent units outstanding | 1,582,779 | |
General partner ownership | 2.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | |||
RINs Obligation | $ 14.4 | $ 15.8 | |
Other (1) | [1] | 56 | 18 |
Total | 70.4 | $ 33.8 | |
TexStar Current Liability | $ 38.1 | ||
[1] | Balance as of September 30, 2019 includes $38.1 million related to the reclassification of the present value of the TexStar finance lease obligation in the first quarter of 2019 from current and long-term debt to other current liabilities. See Note 7 - “Commitments and Contingencies” for further information. |
Revenue Recognition Revenue R_3
Revenue Recognition Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||||
Sales by major source | $ 929.6 | $ 2,677.8 | |||
Contract Receivable | 216 | 216 | $ 177.7 | ||
Standard specialty products | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales by major source | 296.2 | $ 285.2 | 872.2 | $ 848.7 | |
Packaged and synthetic specialty products | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales by major source | 59.6 | 64 | 180.2 | 204.9 | |
Specialty Product [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales by major source | 355.8 | 349.2 | 1,052.4 | 1,053.6 | |
Fuel and fuel related products | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales by major source | 508.4 | 525.9 | 1,446.3 | 1,422.2 | |
Asphalt | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales by major source | 65.4 | 78.4 | 179.1 | 173.7 | |
Fuel Product [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales by major source | 573.8 | 604.3 | 1,625.4 | 1,595.9 | |
Total Sales | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales by major source | $ 929.6 | $ 953.5 | $ 2,677.8 | $ 2,649.5 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |||||
Inventory method | last-in, first-out (“LIFO”) | ||||
Effect of LIFO Inventory Liquidation on Income | $ 0 | $ 0 | $ (0.9) | $ 0 | |
Replacement cost of inventories, based on current market values | (15.8) | (15.8) | $ (7.8) | ||
Lower of cost or market inventory adjustment | $ (2.7) | $ (3) | $ 38.8 | $ 12 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | |
Inventories | |||
Raw materials | $ 58.6 | $ 52.4 | |
Work in process | 69.7 | 59.9 | |
Finished goods | 165 | 171.8 | |
Inventories total | 293.3 | 284.1 | |
Titled Inventory | |||
Inventories | |||
Raw materials | 43.9 | 41.8 | |
Work in process | 37 | 40.7 | |
Finished goods | 112.1 | 127.9 | |
Inventories total | 193 | 210.4 | |
Supply&Offtake Agreements | |||
Inventories | |||
Raw materials | [1] | 14.7 | 10.6 |
Work in process | [1] | 32.7 | 19.2 |
Finished goods | [1] | 52.9 | 43.9 |
Inventories total | [1] | $ 100.3 | $ 73.7 |
[1] | Amounts represent LIFO value and do not necessarily represent the value of product financing. Refer to Note 8 - “Inventory Financing Agreements” for further information. |
Discontinued Operations Disco_3
Discontinued Operations Discontinued operations (Details) - USD ($) $ in Millions | Oct. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2019 | Dec. 31, 2018 | Nov. 21, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Other accounts receivable | $ 24.7 | $ 20.3 | ||||
Other | $ (0.5) | $ (3.1) | ||||
Net loss from discontinued operations net of income taxes | $ (0.5) | $ (3.1) | ||||
Anchor Acquisition | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Anchor total consideration | $ 85.5 | |||||
Anchor base price | 50 | |||||
Anchor working capital adjustment | $ 14.2 | |||||
Other accounts receivable | $ 6.1 | $ 11.1 | ||||
Fluid Holding Corp | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Equity interest percentage | 10.00% | |||||
Subsequent Event [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Settlement Agreement Became Effective | Oct. 31, 2019 | |||||
QMax Agreegment Initial Receivable | $ 0.3 | |||||
Subsequent Event [Member] | Anchor Acquisition | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Annual Interest Rate on Balance | 6.00% | |||||
Subsequent Event [Member] | Maximum [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Settlement Agreement Became Effective | Jun. 30, 2021 | |||||
Subsequent Event [Member] | Minimum [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Settlement Agreement Became Effective | Dec. 30, 2019 |
Investment in Unconsolidated _3
Investment in Unconsolidated Affiliates Investment in Unconsolidated Affiliates - Schedule (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Nov. 21, 2017 |
Schedule of Equity Method Investments [Line Items] | |||||
Investment in unconsolidated affiliates | $ 5.7 | $ 25.4 | |||
Fluid Holding Corp | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investment in unconsolidated affiliates | $ 5.7 | $ 9.3 | $ 25.4 | $ 25.4 | |
Equity interest percentage | 10.00% |
Investment in Unconsolidated _4
Investment in Unconsolidated Affiliates - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | Nov. 21, 2017 | |
Schedule of Equity Method Investments [Line Items] | ||||||||
Investment in unconsolidated affiliates | $ 5.7 | $ 5.7 | $ 25.4 | |||||
Asset impairment | 3.2 | $ 0 | 31.1 | $ 0 | ||||
Proceeds from Sale of Biosyn | 5 | $ 9.9 | ||||||
Fluid Holding Corp | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Investment in unconsolidated affiliates | 5.7 | $ 9.3 | 5.7 | $ 25.4 | $ 25.4 | |||
Asset impairment | $ 3.6 | $ 16.1 | 19.7 | |||||
Equity interest percentage | 10.00% | |||||||
Biosyn Holdings, LLC | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Proceeds from Sale of Biosyn | $ 5 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative - Environmental (Details) - USD ($) $ in Millions | Jul. 09, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Great Falls | |||
Loss Contingencies [Line Items] | |||
Environmental Remediation Expense | $ 17 | ||
Great Falls | Capital Expenditure | |||
Loss Contingencies [Line Items] | |||
Environmental Remediation Expense | $ 14.6 | ||
shreveport [Member] | |||
Loss Contingencies [Line Items] | |||
Settlement Agreement Became Effective | Jul. 9, 2019 | ||
Environmental Applicability, Impact and Conclusion Disclosures | 0.1 | ||
Fair Value, Measurements, Recurring | |||
Loss Contingencies [Line Items] | |||
RINs Obligation | $ (14.4) | $ (15.8) | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||
Loss Contingencies [Line Items] | |||
RINs Obligation | $ (14.4) | $ (15.8) |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies - Narrative -Standby Letters of Credit (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Revolving Credit Facility | ||
Loss Contingencies [Line Items] | ||
Outstanding standby letters of credit | $ 70.1 | $ 35.1 |
Revolver commitments | $ 600 | $ 600 |
Revolving Credit Facility | Maximum [Member] | ||
Loss Contingencies [Line Items] | ||
Letter of Credit Sublimit | 90.00% | 90.00% |
Letter of Credit | ||
Loss Contingencies [Line Items] | ||
Revolver commitments | $ 300 | $ 300 |
Commitments and Contingencies_2
Commitments and Contingencies Commitments and Contingencies - Narratives - Texstar (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Loss Contingencies [Line Items] | ||
TexStar Contract Period Term | 20 years | |
Gain (Loss) on Disposition of Assets | $ (31.1) | $ 0 |
TexStar Current Liability | 38.1 | |
Minimum [Member] | ||
Loss Contingencies [Line Items] | ||
TexStar Potential Payments | 0 | |
Maximum [Member] | ||
Loss Contingencies [Line Items] | ||
TexStar Potential Payments | 0.5 | |
TexStar [Member] | ||
Loss Contingencies [Line Items] | ||
Gain (Loss) on Disposition of Assets | $ (10.7) |
Commitments and Contingencies_3
Commitments and Contingencies Commitment and Contingencies - Narrative - Transactions with Related Parties (Details) $ / shares in Units, shares in Millions, $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($)$ / sharesshares | |
Related Party Transaction [Line Items] | |
Weighted Average Number of Shares, Contingently Issuable | shares | 4 |
Value of Contingently Issuable Per Share | $ / shares | $ 3.60 |
The Heritage Group [Member] | |
Related Party Transaction [Line Items] | |
Related Party Transaction, Amounts of Transaction | $ | $ 2.4 |
Commitments and Contingencies_4
Commitments and Contingencies Commitments and Contingencies - Narrative - Other Matters, Claims and Legal Proceedings (Details) - shreveport [Member] - USD ($) $ in Millions | Jul. 09, 2019 | Sep. 30, 2019 |
Loss Contingencies [Line Items] | ||
Litigation Settlement, Expense | $ 3.7 | |
Settlement Agreement Became Effective | Jul. 9, 2019 |
Commitments and Contingencies_5
Commitments and Contingencies Commitments and Contingencies - Narrative - Throughput Contract (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2019bbl | Nov. 10, 2019USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||
Unrecorded Unconditional Purchase Obligations Disclosure [Table Text Block] | As of September 30, 2019, the estimated minimum unconditional purchase commitments under this agreement were as follows (in millions): Year Commitment 2020 $ 3.6 2021 3.4 2022 3.1 2023 2.9 2024 2.7 Thereafter 4.9 Total $ 20.6 | |
Long-term Purchase Commitment [Line Items] | ||
Long-term Purchase Commitment, Minimum Volume Required | bbl | 5,000 | |
Product Liability Contingency, Third Party Recovery, Percentage | 2.00% | |
Subsequent Event [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Purchase Commitment, Remaining Minimum Amount Committed | $ 20.6 | |
Subsequent Event [Member] | 2020 | ||
Long-term Purchase Commitment [Line Items] | ||
Purchase Commitment, Remaining Minimum Amount Committed | 3.6 | |
Subsequent Event [Member] | 2021 | ||
Long-term Purchase Commitment [Line Items] | ||
Purchase Commitment, Remaining Minimum Amount Committed | 3.4 | |
Subsequent Event [Member] | 2022 | ||
Long-term Purchase Commitment [Line Items] | ||
Purchase Commitment, Remaining Minimum Amount Committed | 3.1 | |
Subsequent Event [Member] | 2023 | ||
Long-term Purchase Commitment [Line Items] | ||
Purchase Commitment, Remaining Minimum Amount Committed | 2.9 | |
Subsequent Event [Member] | 2024 | ||
Long-term Purchase Commitment [Line Items] | ||
Purchase Commitment, Remaining Minimum Amount Committed | 2.7 | |
Subsequent Event [Member] | Thereafter | ||
Long-term Purchase Commitment [Line Items] | ||
Purchase Commitment, Remaining Minimum Amount Committed | $ 4.9 |
Inventory Financing Agreement I
Inventory Financing Agreement Inventory Financing Agreement - Narrative (Details) $ in Millions | May 09, 2019 | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Jun. 19, 2017D / bbl | Mar. 31, 2017bbl / d |
Oil and Gas, Delivery Commitment [Line Items] | ||||||||
Financing costs | $ 33.8 | $ 37.7 | $ 99.2 | $ 120.4 | ||||
Obligations under inventory financing agreements | 117 | 117 | $ 105.3 | |||||
Inventory Financing Obligations | ||||||||
Oil and Gas, Delivery Commitment [Line Items] | ||||||||
Barrels of crude oil per day provided by Macquarie (in barrels per day) | 60,000 | 30,000 | ||||||
Financing costs | 5.6 | $ 6.3 | $ 11.7 | $ 13.4 | ||||
Deferred payment arrangement, maximum percentage of eligible inventory | 90.00% | |||||||
Deferred payment arrangement, outstanding amount | 22.2 | $ 22.2 | $ 20.4 | |||||
Obligations under inventory financing agreements | 5 | 5 | ||||||
Inventory Financing Obligations | Macquarie | ||||||||
Oil and Gas, Delivery Commitment [Line Items] | ||||||||
Amount retained from initial inventory purchase to cover credit and liquidation risks | $ 9.7 | $ 9.7 | ||||||
London Interbank Offered Rate (LIBOR) | Inventory Financing Obligations | ||||||||
Oil and Gas, Delivery Commitment [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.25% | |||||||
Great Falls | ||||||||
Oil and Gas, Delivery Commitment [Line Items] | ||||||||
Inventory Financing Agreement Extension | Jun. 30, 2023 | |||||||
shreveport [Member] | ||||||||
Oil and Gas, Delivery Commitment [Line Items] | ||||||||
Inventory Financing Agreement Extension | Jun. 30, 2023 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | ||
Senior Notes [Abstract] | |||
Other | $ 4.1 | $ 5.2 | |
Less unamortized debt issuance costs | [1] | (11.5) | (15.8) |
Total long-term debt | 1,429.7 | 1,604.5 | |
Less current portion of long-term debt | 123.5 | 3.8 | |
Total long-term debt, excluding current portion | 1,306.2 | 1,600.7 | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Long-term Line of Credit | $ 0 | $ 0 | |
Senior Notes [Abstract] | |||
Weighted average interest rate | 0.20% | 6.00% | |
Notes Due April 2021 at Fixed Rate of 6.5% Interest Payments | |||
Summary of Long-term debt | |||
Borrowings under Notes | $ 761.2 | $ 900 | |
Senior Notes [Abstract] | |||
Fixed rate | 6.50% | 6.50% | |
Effective interest rate | 6.80% | 6.80% | |
Less current portion of long-term debt | $ 121.7 | ||
7.625% Notes | |||
Summary of Long-term debt | |||
Borrowings under Notes | [2] | $ 351.2 | $ 351.6 |
Senior Notes [Abstract] | |||
Fixed rate | 7.625% | 7.625% | |
Effective interest rate | 8.10% | 8.00% | |
Notes Due April 2023 at Fixed Rate of 7.75% Interest Payments | |||
Summary of Long-term debt | |||
Borrowings under Notes | $ 325 | $ 325 | |
Senior Notes [Abstract] | |||
Fixed rate | 7.75% | 7.75% | |
Effective interest rate | 8.10% | 8.00% | |
Capital Lease Obligations | |||
Senior Notes [Abstract] | |||
Finance lease obligations, at various interest rates, interest and monthly principal payments | $ 2.8 | $ 42.4 | |
Less unamortized discounts | |||
Senior Notes [Abstract] | |||
Less unamortized discounts | (3.1) | (3.9) | |
Interest Expense | Fair Value Hedging | |||
Senior Notes [Abstract] | |||
Liabilities, fair value adjustment | $ 1.2 | $ 1.6 | |
[1] | Deferred debt issuance costs are being amortized by the effective interest rate method over the lives of the related debt instruments. These amounts are net of accumulated amortization of $27.7 million and $23.5 million at September 30, 2019 and December 31, 2018, respectively. | ||
[2] | The balance includes a fair value interest rate hedge adjustment, which increased the debt balance by $1.2 million and $1.6 million as of September 30, 2019 and December 31, 2018, respectively. |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) $ in Millions | Oct. 21, 2019USD ($) | Sep. 20, 2019 | Sep. 04, 2019 | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Long-Term Debt (Textual) [Abstract] | |||||||||
Accumulated Amortization, Deferred Finance Costs | $ 27.7 | $ 27.7 | $ 23.5 | ||||||
Gain (Loss) from debt extinguishment | $ 0 | $ 0 | 0.7 | $ (58.8) | |||||
Repayments of borrowings — senior notes | $ 137.3 | $ 400 | |||||||
Line of Credit Amendment | Sep. 4, 2019 | ||||||||
Line of Credit Facility, Collateral | adding the fixed assets of the Company’s Great Falls, MT refinery | ||||||||
Line of Credit Amendment Conditions Description | Among other conditions precedent that were required to be satisfied before the Effective Date, the Company was required to consummate an offering of at least $450.0 million aggregate principal amount of senior unsecured notes. The conditions precedent were not satisfied until October 11, 2019. | ||||||||
Debt Instrument, Redemption, Description | On September 20, 2019, the Company announced a conditional redemption of its 2021 Notes at a price of par, plus accrued and unpaid interest. The obligation to redeem the 2021 Notes was conditioned upon, on or before the redemption date of October 21, 2019, the completion of an offering of at least $550.0 million principal amount of Calumet’s senior debt securities and the satisfaction of all conditions precedent to the effectiveness of the amendment to the Company’s revolving credit facility credit agreement, dated as of September 4, 2019. As of September 30, 2019, the conditions for the redemption of the 2021 Notes had not been met. The conditions for the redemption were met on October 11, 2019 | ||||||||
Notes Due April Two Thousand and Two One at Fixed Rate of Six Point Five Percentage Interest Payments [Member] | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Debt Instrument Percentage Of Discount Price | 99.40% | 99.40% | |||||||
Notes Due April 2021 at Fixed Rate of 6.5% Interest Payments | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Debt Instrument, Repurchase Amount | $ 49 | $ 49 | |||||||
Senior Notes, Noncurrent | 761.2 | 761.2 | 900 | ||||||
Repayments of borrowings — senior notes | 138.8 | ||||||||
FILO Revolver | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Senior secured revolving credit facility | 25 | 25 | |||||||
Notes Due April 2023 at Fixed Rate of 7.75% Interest Payments | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Senior Notes, Noncurrent | 325 | 325 | 325 | ||||||
7.625% Notes | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Senior Notes, Noncurrent | [1] | 351.2 | $ 351.2 | 351.6 | |||||
Senior Notes | Maximum | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Fixed charge coverage ratio | 2.3 | ||||||||
Revolving Credit Facility | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Maturity date | Feb. 28, 2023 | ||||||||
Frequency of interest payment | quarterly | ||||||||
Senior secured revolving credit facility | 600 | $ 600 | 600 | ||||||
Expansion Feature | 99.6 | 99.6 | |||||||
Incremental uncommitted expansion feature | $ 500 | $ 500 | |||||||
Consecutive Quarters, Margin Reduction Threshold | 5.5 | 5.5 | |||||||
Customary letter of credit fee, including a fronting fee per annum on the stated amount of each outstanding letter of credit | 0.125% | ||||||||
Outstanding standby letters of credit | $ 70.1 | $ 70.1 | $ 35.1 | ||||||
Financial covenant | if the Company’s availability to borrow loans under the revolving credit facility falls below the sum of the greater of (i) 10% of the borrowing base then in effect, or 15% while the Great Falls, MT refinery is included in the borrowing base, and (ii) $35.0 million (which amount is subject to increase in proportion to revolving commitment increases), plus the amount of FILO Loans outstanding, then the Company will be required to maintain as of the end of each fiscal quarter a Fixed Charge Coverage Ratio (as defined in the revolving credit facility agreement) of at least 1.0 to 1.0. | ||||||||
Revolving Credit Facility | Maximum | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Letter of Credit Sublimit | 90.00% | 90.00% | 90.00% | ||||||
Basis points | 25.00% | ||||||||
Unutilized commitments fee to the lender under the revolving credit facility | 0.375% | ||||||||
Revolving Credit Facility | Minimum | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Basis points | 25.00% | ||||||||
Unutilized commitments fee to the lender under the revolving credit facility | 0.25% | ||||||||
London Interbank Offered Rate (LIBOR) | FILO Revolver | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Basis points | 225.00% | ||||||||
London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Basis points | 125.00% | ||||||||
Prime Rate | FILO Revolver | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Basis points | 125.00% | ||||||||
Prime Rate | Revolving Credit Facility | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Basis points | 25.00% | ||||||||
Quarterly Average Availability Percentage, Range 1 | London Interbank Offered Rate (LIBOR) | FILO Revolver | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Basis points | 2.50% | ||||||||
Quarterly Average Availability Percentage, Range 1 | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Basis points | 1.50% | ||||||||
Quarterly Average Availability Percentage, Range 1 | Prime Rate | FILO Revolver | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Basis points | 1.50% | ||||||||
Quarterly Average Availability Percentage, Range 1 | Prime Rate | Revolving Credit Facility | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Basis points | 0.50% | ||||||||
Quarterly Average Availability Percentage, Range 2 | London Interbank Offered Rate (LIBOR) | FILO Revolver | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Basis points | 2.75% | ||||||||
Quarterly Average Availability Percentage, Range 2 | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Basis points | 1.75% | ||||||||
Quarterly Average Availability Percentage, Range 2 | Prime Rate | FILO Revolver | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Basis points | 1.75% | ||||||||
Quarterly Average Availability Percentage, Range 2 | Prime Rate | Revolving Credit Facility | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Basis points | 0.75% | ||||||||
Quarterly Average Availabiity Percentage, Range 3 | London Interbank Offered Rate (LIBOR) | FILO Revolver | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Basis points | 3.00% | ||||||||
Quarterly Average Availabiity Percentage, Range 3 | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Basis points | 2.00% | ||||||||
Quarterly Average Availabiity Percentage, Range 3 | Prime Rate | FILO Revolver | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Basis points | 2.00% | ||||||||
Quarterly Average Availabiity Percentage, Range 3 | Prime Rate | Revolving Credit Facility | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Basis points | 1.00% | ||||||||
Subsequent Event [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Proceeds from Lines of Credit | $ 99.5 | ||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Debt Instrument, Redemption Period, End Date | Oct. 21, 2019 | ||||||||
Subsequent Event [Member] | Notes Due April 2021 at Fixed Rate of 6.5% Interest Payments | |||||||||
Long-Term Debt (Textual) [Abstract] | |||||||||
Debt Instrument, Repurchase Amount | $ 761.2 | ||||||||
[1] | The balance includes a fair value interest rate hedge adjustment, which increased the debt balance by $1.2 million and $1.6 million as of September 30, 2019 and December 31, 2018, respectively. |
Long-Term Debt - Summary of Pri
Long-Term Debt - Summary of Principal Payments on Debt Obligations and Future Minimum Rentals on Capital Lease Obligations (Details) $ in Millions | Sep. 30, 2019USD ($) |
Maturities of long-term debt | |
2019 | $ 122.1 |
2020 | 1.8 |
2021 | 642.1 |
2022 | 350.3 |
2023 | 325.4 |
Thereafter | 1.4 |
Long-term debt | $ 1,443.1 |
Derivatives - Summary of Gross
Derivatives - Summary of Gross Fair Values of Derivative Instruments, Presenting the Impact of Offsetting Derivative Assets (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Offsetting Assets [Line Items] | |||
Gross Amounts of Recognized Assets | $ 5.8 | $ 33.5 | |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | (5) | (13.7) | |
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0.8 | 19.8 | |
Midland crude oil basis swap purchases [Member] | Not Designated as Hedging Instrument [Member] | Specialty Product [Member] | |||
Offsetting Assets [Line Items] | |||
Gross Amounts of Recognized Assets | 0 | 1 | |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 | ||
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0 | 1 | |
Midland crude oil basis swap purchases [Member] | Not Designated as Hedging Instrument [Member] | Fuel Product [Member] | |||
Offsetting Assets [Line Items] | |||
Gross Amounts of Recognized Assets | 0 | 7.1 | |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 | 0 | |
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0 | 7.1 | |
Gasoline Crack Spread Swaps [Member] | Not Designated as Hedging Instrument [Member] | Fuel Product [Member] | |||
Offsetting Assets [Line Items] | |||
Gross Amounts of Recognized Assets | 0.2 | 0 | |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | (0.1) | 0 | |
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0.1 | 0 | |
WCS crude oil basis swaps | Not Designated as Hedging Instrument [Member] | Fuel Product [Member] | |||
Offsetting Assets [Line Items] | |||
Gross Amounts of Recognized Assets | 0 | 16.5 | |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 | (1.6) | |
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0 | 14.9 | |
WCS crude oil percentage basis swap | Not Designated as Hedging Instrument [Member] | Fuel Product [Member] | |||
Offsetting Assets [Line Items] | |||
Gross Amounts of Recognized Assets | 2.4 | 0 | |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | (2.4) | (6.1) | |
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0 | (6.1) | |
Diesel crack spread swaps | Not Designated as Hedging Instrument [Member] | Fuel Product [Member] | |||
Offsetting Assets [Line Items] | |||
Gross Amounts of Recognized Assets | 0.2 | 7.4 | |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 | 0 | |
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0.2 | 7.4 | |
Diesel percentage basis crack spread swaps | Not Designated as Hedging Instrument [Member] | Fuel Product [Member] | |||
Offsetting Assets [Line Items] | |||
Gross Amounts of Recognized Assets | 1.2 | 0 | |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | (1) | (6) | |
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0.2 | (6) | |
2-1-1- Crack Spread Swap [Member] | Not Designated as Hedging Instrument [Member] | Fuel Product [Member] | |||
Offsetting Assets [Line Items] | |||
Gross Amounts of Recognized Assets | 0.3 | 0 | |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 | 0 | |
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0 | ||
Inventory Financing Obligations | Not Designated as Hedging Instrument [Member] | Fuel Product [Member] | |||
Offsetting Assets [Line Items] | |||
Gross Amounts of Recognized Assets | 1.5 | 1.5 | |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | (1.5) | 0 | |
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0 | 1.5 | |
Fair Value, Measurements, Recurring | |||
Offsetting Assets [Line Items] | |||
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0.8 | 19.8 | |
Fair Value, Measurements, Recurring | Midland crude oil basis swap purchases [Member] | |||
Offsetting Assets [Line Items] | |||
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0 | 8.1 | |
Fair Value, Measurements, Recurring | Gasoline Crack Spread Swaps [Member] | |||
Offsetting Assets [Line Items] | |||
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | $ 0.1 | 0 | |
Fair Value, Measurements, Recurring | Inventory Financing Obligations | |||
Offsetting Assets [Line Items] | |||
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0 | (1.5) | |
Fair Value, Measurements, Recurring | WCS crude oil basis swaps | |||
Offsetting Assets [Line Items] | |||
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0 | 14.9 | |
Fair Value, Measurements, Recurring | WCS crude oil percentage basis swap | |||
Offsetting Assets [Line Items] | |||
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0 | (6.1) | |
Fair Value, Measurements, Recurring | Diesel crack spread swaps | |||
Offsetting Assets [Line Items] | |||
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0.2 | 7.4 | |
Fair Value, Measurements, Recurring | Diesel percentage basis crack spread swaps | |||
Offsetting Assets [Line Items] | |||
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0.2 | (6) | |
Fair Value, Measurements, Recurring | 2-1-1- Crack Spread Swap [Member] | |||
Offsetting Assets [Line Items] | |||
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0.3 | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | |||
Offsetting Assets [Line Items] | |||
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0.8 | 19.8 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Midland crude oil basis swap purchases [Member] | |||
Offsetting Assets [Line Items] | |||
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0 | 8.1 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Gasoline Crack Spread Swaps [Member] | |||
Offsetting Assets [Line Items] | |||
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0.1 | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Inventory Financing Obligations | |||
Offsetting Assets [Line Items] | |||
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0 | (1.5) | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | WCS crude oil basis swaps | |||
Offsetting Assets [Line Items] | |||
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0 | 14.9 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | WCS crude oil percentage basis swap | |||
Offsetting Assets [Line Items] | |||
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0 | (6.1) | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Diesel crack spread swaps | |||
Offsetting Assets [Line Items] | |||
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0.2 | 7.4 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Diesel percentage basis crack spread swaps | |||
Offsetting Assets [Line Items] | |||
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0.2 | (6) | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | 2-1-1- Crack Spread Swap [Member] | |||
Offsetting Assets [Line Items] | |||
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0.3 | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member] | |||
Offsetting Assets [Line Items] | |||
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0 | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member] | Midland crude oil basis swap purchases [Member] | |||
Offsetting Assets [Line Items] | |||
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0 | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member] | Gasoline Crack Spread Swaps [Member] | |||
Offsetting Assets [Line Items] | |||
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0 | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member] | Inventory Financing Obligations | |||
Offsetting Assets [Line Items] | |||
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0 | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member] | WCS crude oil basis swaps | |||
Offsetting Assets [Line Items] | |||
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0 | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member] | WCS crude oil percentage basis swap | |||
Offsetting Assets [Line Items] | |||
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0 | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member] | Diesel crack spread swaps | |||
Offsetting Assets [Line Items] | |||
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0 | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member] | Diesel percentage basis crack spread swaps | |||
Offsetting Assets [Line Items] | |||
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0 | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member] | 2-1-1- Crack Spread Swap [Member] | |||
Offsetting Assets [Line Items] | |||
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0 | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||
Offsetting Assets [Line Items] | |||
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0 | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Midland crude oil basis swap purchases [Member] | |||
Offsetting Assets [Line Items] | |||
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0 | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Gasoline Crack Spread Swaps [Member] | |||
Offsetting Assets [Line Items] | |||
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | $ 0 | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Inventory Financing Obligations | |||
Offsetting Assets [Line Items] | |||
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0 | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | WCS crude oil basis swaps | |||
Offsetting Assets [Line Items] | |||
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0 | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | WCS crude oil percentage basis swap | |||
Offsetting Assets [Line Items] | |||
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0 | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Diesel crack spread swaps | |||
Offsetting Assets [Line Items] | |||
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0 | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Diesel percentage basis crack spread swaps | |||
Offsetting Assets [Line Items] | |||
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 0 | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | 2-1-1- Crack Spread Swap [Member] | |||
Offsetting Assets [Line Items] | |||
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | $ 0 | $ 0 |
Derivatives - Summary of Gros_2
Derivatives - Summary of Gross Fair Values of Derivative Instruments, Presenting the Impact of Offsetting Derivative Liabilities (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Millions | Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Offsetting Liabilities [Line Items] | |||
Gross Amounts of Recognized Liabilities | $ (6.2) | $ (13.7) | |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 5 | 13.7 | |
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets | (1.2) | 0 | |
Gasoline Crack Spread Swaps [Member] | Fuel Product [Member] | |||
Offsetting Liabilities [Line Items] | |||
Gross Amounts of Recognized Liabilities | $ (0.1) | 0 | |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0.1 | 0 | |
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets | $ 0 | 0 | |
WCS crude oil basis swaps | Fuel Product [Member] | |||
Offsetting Liabilities [Line Items] | |||
Gross Amounts of Recognized Liabilities | 0 | (1.6) | |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 | 1.6 | |
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets | 0 | 0 | |
WCS crude oil percentage basis swap | Fuel Product [Member] | |||
Offsetting Liabilities [Line Items] | |||
Gross Amounts of Recognized Liabilities | (2.4) | (6.1) | |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 2.4 | 6.1 | |
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets | 0 | 0 | |
Diesel percentage basis crack spread swaps | Fuel Product [Member] | |||
Offsetting Liabilities [Line Items] | |||
Gross Amounts of Recognized Liabilities | (1) | (6) | |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 1 | 6 | |
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets | 0 | 0 | |
Inventory Financing Obligations | Fuel Product [Member] | |||
Offsetting Liabilities [Line Items] | |||
Gross Amounts of Recognized Liabilities | (2.7) | 0 | |
Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 1.5 | 0 | |
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets | $ (1.2) | $ 0 |
Derivatives - Schedule of Deriv
Derivatives - Schedule of Derivative Instruments (Not Designated as Hedges) (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Realized Gain (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | $ 0.4 | $ (0.3) | $ 34.6 | $ (2.4) |
Unrealized Gain (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | (5.4) | (2.4) | (20.2) | 0.4 |
Crude Oil Swaps [Member] | Fuel Product [Member] | Realized Gain (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 0 | 0 | ||
Crude Oil Swaps [Member] | Fuel Product [Member] | Unrealized Gain (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 0 | (0.3) | ||
WCS crude oil basis swaps | Fuel Product [Member] | Realized Gain (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 0 | 0.4 | 17.1 | 0.4 |
WCS crude oil basis swaps | Fuel Product [Member] | Unrealized Gain (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 0 | (3.4) | (14.9) | (2.8) |
WCS crude oil percentage basis swap | Fuel Product [Member] | Realized Gain (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 0.1 | 0 | 1 | 0 |
WCS crude oil percentage basis swap | Fuel Product [Member] | Unrealized Gain (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | (0.3) | (4.1) | 6 | (4.9) |
Midland crude oil basis swap purchases [Member] | Specialty Product [Member] | Realized Gain (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 1.6 | 0 | ||
Midland crude oil basis swap purchases [Member] | Specialty Product [Member] | Unrealized Gain (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | (1) | 0 | ||
Midland crude oil basis swap purchases [Member] | Fuel Product [Member] | Realized Gain (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 0 | (1.2) | 9 | (1.2) |
Midland crude oil basis swap purchases [Member] | Fuel Product [Member] | Unrealized Gain (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 0 | 10.1 | (7.1) | 13 |
Gasoline swaps | Fuel Product [Member] | Realized Gain (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 0 | 0 | 0 | 0 |
Gasoline swaps | Fuel Product [Member] | Unrealized Gain (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 0.1 | 0 | 0.1 | 0.2 |
Gasoline Crack Spread Swaps [Member] | Fuel Product [Member] | Realized Gain (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 0 | (1) | ||
Gasoline Crack Spread Swaps [Member] | Fuel Product [Member] | Unrealized Gain (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 0 | 1.8 | ||
2-1-1- Crack Spread Swap [Member] | Fuel Product [Member] | Realized Gain (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 0 | 0 | 0 | 0 |
2-1-1- Crack Spread Swap [Member] | Fuel Product [Member] | Unrealized Gain (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 0.3 | 0 | 0.3 | 0 |
Diesel swaps | Fuel Product [Member] | Realized Gain (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 0 | 0 | ||
Diesel swaps | Fuel Product [Member] | Unrealized Gain (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 0 | 0.2 | ||
Diesel crack spread swaps | Fuel Product [Member] | Realized Gain (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 0.3 | 0.5 | 6.4 | (0.6) |
Diesel crack spread swaps | Fuel Product [Member] | Unrealized Gain (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 0.2 | (0.8) | (7.2) | 5.1 |
Diesel percentage basis crack spread swaps | Fuel Product [Member] | Realized Gain (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 0 | 0 | (0.5) | 0 |
Diesel percentage basis crack spread swaps | Fuel Product [Member] | Unrealized Gain (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | (0.2) | 5.2 | 6.3 | 4.4 |
Inventory Financing Obligations | Fuel Product [Member] | Realized Gain (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | 0 | 0 | 0 | 0 |
Inventory Financing Obligations | Fuel Product [Member] | Unrealized Gain (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedging instruments, gain (loss) | $ (5.5) | $ (9.4) | $ (2.7) | $ (16.3) |
Derivatives Derivatives - Sched
Derivatives Derivatives - Schedule of Derivative Positions (WCS Crude Oil Basis Swaps) (Details) - Fuel Product [Member] - Not Designated as Hedging Instrument [Member] | Sep. 30, 2019bbl$ / bbl | Dec. 31, 2018bbl$ / bbl |
WCS crude oil basis swaps | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 0 | 1,794,000 |
Average Swap ($/Bbl) | $ / bbl | (28.19) | |
Diesel crack spread swaps | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 258,500 | 1,825,000 |
Average Swap ($/Bbl) | $ / bbl | 22.78 | 25.58 |
Midland crude oil basis swap purchases [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 0 | 1,275,000 |
Average Swap ($/Bbl) | $ / bbl | (12.27) | |
WCS Crude Oil Basis Swaps Sales [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 1,763,000 | |
Average Swap ($/Bbl) | $ / bbl | (19.84) | |
First Quarter 2019 [Member] | WCS crude oil basis swaps | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 419,000 | |
Barrels per Day Purchased | 4,656 | |
Average Swap ($/Bbl) | $ / bbl | (28.10) | |
First Quarter 2019 [Member] | Diesel crack spread swaps | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 450,000 | |
Average Swap ($/Bbl) | $ / bbl | 25.58 | |
First Quarter 2019 [Member] | Midland crude oil basis swap purchases [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 501,500 | |
Barrels per Day Purchased | 5,572 | |
Average Swap ($/Bbl) | $ / bbl | (12.79) | |
First Quarter 2019 [Member] | WCS Crude Oil Basis Swaps Sales [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 0 | 388,000 |
Average Swap ($/Bbl) | $ / bbl | (19.84) | |
Second Quarter 2019 [Member] | WCS crude oil basis swaps | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 455,000 | |
Barrels per Day Purchased | 5,000 | |
Average Swap ($/Bbl) | $ / bbl | (28.22) | |
Second Quarter 2019 [Member] | Diesel crack spread swaps | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 455,000 | |
Average Swap ($/Bbl) | $ / bbl | 25.58 | |
Second Quarter 2019 [Member] | Midland crude oil basis swap purchases [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 773,500 | |
Barrels per Day Purchased | 8,500 | |
Average Swap ($/Bbl) | $ / bbl | (11.74) | |
Second Quarter 2019 [Member] | WCS Crude Oil Basis Swaps Sales [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 455,000 | |
Average Swap ($/Bbl) | $ / bbl | (19.84) | |
Third Quarter 2019 [Member] | WCS crude oil basis swaps | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 460,000 | |
Barrels per Day Purchased | 5,000 | |
Average Swap ($/Bbl) | $ / bbl | (28.22) | |
Third Quarter 2019 [Member] | Diesel crack spread swaps | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 460,000 | |
Average Swap ($/Bbl) | $ / bbl | 25.58 | |
Third Quarter 2019 [Member] | WCS Crude Oil Basis Swaps Sales [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 460,000 | |
Average Swap ($/Bbl) | $ / bbl | (19.84) | |
Fourth Quarter 2019 [Member] | WCS crude oil basis swaps | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 460,000 | |
Barrels per Day Purchased | 5,000 | |
Average Swap ($/Bbl) | $ / bbl | (28.22) | |
Fourth Quarter 2019 [Member] | Diesel crack spread swaps | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 62,000 | 460,000 |
Average Swap ($/Bbl) | $ / bbl | 22.18 | 25.58 |
Fourth Quarter 2019 [Member] | WCS Crude Oil Basis Swaps Sales [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 460,000 | |
Average Swap ($/Bbl) | $ / bbl | (19.84) |
Derivatives Derivatives - Sch_2
Derivatives Derivatives - Schedule of Derivative Position (WCS Crude Oil Basis Swap Sales) (Details) - Fuel Product [Member] - Not Designated as Hedging Instrument [Member] | Sep. 30, 2019bbl | Dec. 31, 2018bbl$ / bbl |
WCS crude oil percentage basis swap sales [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 460,000 | 0 |
Fixed Percentage of NYMEX WTI (Average % of WTI/Bbl) | 66.16% | |
WCS Crude Oil Basis Swaps Sales [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 1,763,000 | |
Average Swap ($/Bbl) | $ / bbl | (19.84) | |
Midland crude oil basis swap purchases [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 0 | 1,275,000 |
Average Swap ($/Bbl) | $ / bbl | (12.27) | |
First Quarter 2019 [Member] | WCS Crude Oil Basis Swaps Sales [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 0 | 388,000 |
Barrels per Day Sold | 4,311 | |
Average Swap ($/Bbl) | $ / bbl | (19.84) | |
First Quarter 2019 [Member] | Midland crude oil basis swap purchases [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 501,500 | |
Barrels per Day Purchased | 5,572 | |
Average Swap ($/Bbl) | $ / bbl | (12.79) | |
Second Quarter 2019 [Member] | WCS Crude Oil Basis Swaps Sales [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 455,000 | |
Barrels per Day Sold | 5,000 | |
Average Swap ($/Bbl) | $ / bbl | (19.84) | |
Second Quarter 2019 [Member] | Midland crude oil basis swap purchases [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 773,500 | |
Barrels per Day Purchased | 8,500 | |
Average Swap ($/Bbl) | $ / bbl | (11.74) | |
Third Quarter 2019 [Member] | WCS Crude Oil Basis Swaps Sales [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 460,000 | |
Barrels per Day Sold | 5,000 | |
Average Swap ($/Bbl) | $ / bbl | (19.84) | |
Fourth Quarter 2019 [Member] | WCS crude oil percentage basis swap sales [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 460,000 | |
Barrels per Day Sold | 5,000 | |
Fixed Percentage of NYMEX WTI (Average % of WTI/Bbl) | 66.16% | |
Fourth Quarter 2019 [Member] | WCS Crude Oil Basis Swaps Sales [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 460,000 | |
Barrels per Day Sold | 5,000 | |
Average Swap ($/Bbl) | $ / bbl | (19.84) |
Derivatives - Schedule of Der_2
Derivatives - Schedule of Derivative Positions (WCS Crude Oil Percent Basis Swaps) (Details) - Fuel Product [Member] - Not Designated as Hedging Instrument [Member] - bbl | Sep. 30, 2019 | Dec. 31, 2018 |
WCS crude oil percentage basis swap | ||
Derivative [Line Items] | ||
Fixed Percentage of NYMEX WTI (Average % of WTI/Bbl) | 66.32% | |
Derivative, Nonmonetary Notional Amount | 460,000 | |
WCS crude oil percentage basis swap | Fourth Quarter 2019 [Member] | ||
Derivative [Line Items] | ||
Barrels per Day Purchased | 5,000 | |
Fixed Percentage of NYMEX WTI (Average % of WTI/Bbl) | 66.32% | |
Derivative, Nonmonetary Notional Amount | 460,000 | |
WCS Crude Oil Percent Basis Swaps Purchased [Member] | ||
Derivative [Line Items] | ||
Fixed Percentage of NYMEX WTI (Average % of WTI/Bbl) | 66.32% | |
Derivative, Nonmonetary Notional Amount | 1,825,000 | |
WCS Crude Oil Percent Basis Swaps Purchased [Member] | First Quarter 2019 [Member] | ||
Derivative [Line Items] | ||
Barrels per Day Purchased | 5,000 | |
Fixed Percentage of NYMEX WTI (Average % of WTI/Bbl) | 66.32% | |
Derivative, Nonmonetary Notional Amount | 450,000 | |
WCS Crude Oil Percent Basis Swaps Purchased [Member] | Second Quarter 2019 [Member] | ||
Derivative [Line Items] | ||
Barrels per Day Purchased | 5,000 | |
Fixed Percentage of NYMEX WTI (Average % of WTI/Bbl) | 66.32% | |
Derivative, Nonmonetary Notional Amount | 455,000 | |
WCS Crude Oil Percent Basis Swaps Purchased [Member] | Third Quarter 2019 [Member] | ||
Derivative [Line Items] | ||
Barrels per Day Purchased | 5,000 | |
Fixed Percentage of NYMEX WTI (Average % of WTI/Bbl) | 66.32% | |
Derivative, Nonmonetary Notional Amount | 460,000 | |
WCS Crude Oil Percent Basis Swaps Purchased [Member] | Fourth Quarter 2019 [Member] | ||
Derivative [Line Items] | ||
Barrels per Day Purchased | 5,000 | |
Fixed Percentage of NYMEX WTI (Average % of WTI/Bbl) | 66.32% | |
Derivative, Nonmonetary Notional Amount | 460,000 |
Derivatives Derivatives - Sch_3
Derivatives Derivatives - Schedule of Derivative Positions (WCS Crude Oil Percent Basis Swap sales) (Details) - Not Designated as Hedging Instrument [Member] - Fuel Product [Member] - WCS crude oil percentage basis swap sales [Member] - bbl | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 460,000 | 0 |
Fixed Percentage of NYMEX WTI (Average % of WTI/Bbl) | 66.16% | |
Fourth Quarter 2019 [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 460,000 | |
Barrels per Day Sold | 5,000 | |
Fixed Percentage of NYMEX WTI (Average % of WTI/Bbl) | 66.16% |
Derivatives Derivatives - Sch_4
Derivatives Derivatives - Schedule of Derivative Positions (Midland Crude Oil Basis Swap) (Details) - Midland crude oil basis swap purchases [Member] - Not Designated as Hedging Instrument [Member] - Fuel Product [Member] | Sep. 30, 2019bbl | Dec. 31, 2018bbl$ / bbl |
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 0 | 1,275,000 |
Average Swap ($/Bbl) | $ / bbl | (12.27) | |
First Quarter 2019 [Member] | ||
Derivative [Line Items] | ||
Barrels per Day Purchased | 5,572 | |
Derivative, Nonmonetary Notional Amount | 501,500 | |
Average Swap ($/Bbl) | $ / bbl | (12.79) | |
Second Quarter 2019 [Member] | ||
Derivative [Line Items] | ||
Barrels per Day Purchased | 8,500 | |
Derivative, Nonmonetary Notional Amount | 773,500 | |
Average Swap ($/Bbl) | $ / bbl | (11.74) |
Derivatives Derivatives - Sch_5
Derivatives Derivatives - Schedule of Derivative Positions (Diesel Crack Spread Swaps) (Details) - Diesel crack spread swaps - Not Designated as Hedging Instrument [Member] - Fuel Product [Member] | Sep. 30, 2019bbl$ / bbl | Dec. 31, 2018bbl$ / bbl |
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 258,500 | 1,825,000 |
Average Swap ($/Bbl) | $ / bbl | 22.78 | 25.58 |
First Quarter 2019 [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 450,000 | |
Barrels per Day Sold | 5,000 | |
Average Swap ($/Bbl) | $ / bbl | 25.58 | |
Second Quarter 2019 [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 455,000 | |
Barrels per Day Sold | 5,000 | |
Average Swap ($/Bbl) | $ / bbl | 25.58 | |
Third Quarter 2019 [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 460,000 | |
Barrels per Day Sold | 5,000 | |
Average Swap ($/Bbl) | $ / bbl | 25.58 | |
Fourth Quarter 2019 [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 62,000 | 460,000 |
Barrels per Day Sold | 674 | 5,000 |
Average Swap ($/Bbl) | $ / bbl | 22.18 | 25.58 |
First Quarter 2020 [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 136,500 | |
Barrels per Day Sold | 1,500 | |
Average Swap ($/Bbl) | $ / bbl | 22.91 | |
Second Quarter 2020 [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 60,000 | |
Barrels per Day Sold | 659 | |
Average Swap ($/Bbl) | $ / bbl | 23.10 |
Derivatives Derivatives - Sch_6
Derivatives Derivatives - Schedule of Derivative Positions (Diesel Percent Basis Swap) (Details) - Not Designated as Hedging Instrument [Member] - Fuel Product [Member] - bbl | Sep. 30, 2019 | Dec. 31, 2018 |
Diesel percentage basis crack spread swaps | ||
Derivative [Line Items] | ||
Fixed Percentage of NYMEX WTI (Average % of WTI/Bbl) | 138.38% | 138.38% |
Derivative, Nonmonetary Notional Amount | 460,000 | 1,825,000 |
Diesel percentage basis crack spread swaps | First Quarter 2019 [Member] | ||
Derivative [Line Items] | ||
Barrels per Day Sold | 5,000 | |
Fixed Percentage of NYMEX WTI (Average % of WTI/Bbl) | 138.38% | |
Derivative, Nonmonetary Notional Amount | 450,000 | |
Diesel percentage basis crack spread swaps | Second Quarter 2019 [Member] | ||
Derivative [Line Items] | ||
Barrels per Day Sold | 5,000 | |
Fixed Percentage of NYMEX WTI (Average % of WTI/Bbl) | 138.38% | |
Derivative, Nonmonetary Notional Amount | 455,000 | |
Diesel percentage basis crack spread swaps | Third Quarter 2019 [Member] | ||
Derivative [Line Items] | ||
Barrels per Day Sold | 5,000 | |
Fixed Percentage of NYMEX WTI (Average % of WTI/Bbl) | 138.38% | |
Derivative, Nonmonetary Notional Amount | 460,000 | |
Diesel percentage basis crack spread swaps | Fourth Quarter 2019 [Member] | ||
Derivative [Line Items] | ||
Barrels per Day Sold | 5,000 | 5,000 |
Fixed Percentage of NYMEX WTI (Average % of WTI/Bbl) | 138.38% | 138.38% |
Derivative, Nonmonetary Notional Amount | 460,000 | 460,000 |
Diesel Percent Basis Crack Purchase Spread Swaps [Member] [Domain] | ||
Derivative [Line Items] | ||
Fixed Percentage of NYMEX WTI (Average % of WTI/Bbl) | 137.37% | |
Derivative, Nonmonetary Notional Amount | 460,000 | 0 |
Diesel Percent Basis Crack Purchase Spread Swaps [Member] [Domain] | Fourth Quarter 2019 [Member] | ||
Derivative [Line Items] | ||
Barrels per Day Purchased | 5,000 | |
Fixed Percentage of NYMEX WTI (Average % of WTI/Bbl) | 137.37% | |
Derivative, Nonmonetary Notional Amount | 460,000 |
Derivatives Derivatives - Sch_7
Derivatives Derivatives - Schedule of Derivative Positions (Gasoline Crack Spread Swaps) (Details) - Not Designated as Hedging Instrument [Member] - Fuel Product [Member] - Gasoline Crack Spread Swaps [Member] | Sep. 30, 2019bbl$ / bbl | Dec. 31, 2018bbl |
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 258,500 | 0 |
Average Swap ($/Bbl) | $ / bbl | 12.25 | |
First Quarter 2020 [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 136,500 | |
Barrels per Day Sold | 1,500 | |
Average Swap ($/Bbl) | $ / bbl | 11.69 | |
Fourth Quarter 2019 [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 62,000 | |
Barrels per Day Sold | 674 | |
Average Swap ($/Bbl) | $ / bbl | 9.37 | |
Second Quarter 2020 [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 60,000 | |
Barrels per Day Sold | 659 | |
Average Swap ($/Bbl) | $ / bbl | 16.48 |
Derivatives Derivatives - Sch_8
Derivatives Derivatives - Schedule of Derivative Positions (2/1/1 Crack Spread sales) (Details) - Not Designated as Hedging Instrument [Member] - Fuel Product [Member] - 2-1-1- Crack Spread Swap [Member] | Sep. 30, 2019bbl$ / bbl | Dec. 31, 2018bbl |
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 228,000 | 0 |
Average Swap ($/Bbl) | $ / bbl | 17.35 | |
Fourth Quarter 2019 [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 31,000 | |
Barrels per Day Sold | 337 | |
Average Swap ($/Bbl) | $ / bbl | 15.88 | |
Second Quarter 2020 [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 15,000 | |
Barrels per Day Sold | 165 | |
Average Swap ($/Bbl) | $ / bbl | 19.50 | |
First Quarter 2020 [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 182,000 | |
Barrels per Day Sold | 2,000 | |
Average Swap ($/Bbl) | $ / bbl | 17.43 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) | Sep. 30, 2019USD ($)bbl | Dec. 31, 2018USD ($)bbl |
Derivative [Line Items] | ||
Derivative, Collateral, Obligation to Return Cash | $ 0 | |
Total derivative assets | 800,000 | $ 19,800,000 |
Derivative, Collateral, Right to Reclaim Securities | $ 0 | 0 |
Derivative, Collateral, Obligation to Return Securities | $ 0 | |
WCS Crude Oil Basis Swaps Sales [Member] | Fuel Product [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | bbl | 1,763,000 | |
WCS Crude Oil Basis Swaps Sales [Member] | First Quarter 2019 [Member] | Fuel Product [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | bbl | 0 | 388,000 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Recurring Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Total derivative assets | $ (0.8) | $ (19.8) |
Fair Value, Measurements, Recurring | ||
Assets: | ||
Total derivative assets | (0.8) | (19.8) |
Pension plan investments | 0 | 0.1 |
Assets, Fair Value Disclosure | 0.8 | 19.9 |
Derivative liabilities: | ||
Total derivative liabilities | 1.2 | 0 |
RINs Obligation | (14.4) | (15.8) |
Liability Awards | (6.8) | (2.7) |
Total recurring liabilities at fair value | (22.4) | (18.5) |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Total derivative assets | 0 | 0 |
Pension plan investments | 0 | 0.1 |
Assets, Fair Value Disclosure | 0 | 0.1 |
Derivative liabilities: | ||
Total derivative liabilities | 0 | 0 |
RINs Obligation | 0 | 0 |
Liability Awards | (6.8) | (2.7) |
Total recurring liabilities at fair value | (6.8) | (2.7) |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Total derivative assets | 0 | 0 |
Pension plan investments | 0 | 0 |
Assets, Fair Value Disclosure | 0 | 0 |
Derivative liabilities: | ||
Total derivative liabilities | 0 | 0 |
RINs Obligation | (14.4) | (15.8) |
Liability Awards | 0 | 0 |
Total recurring liabilities at fair value | (14.4) | (15.8) |
Fair Value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Total derivative assets | (0.8) | (19.8) |
Pension plan investments | 0 | 0 |
Assets, Fair Value Disclosure | 0.8 | 19.8 |
Derivative liabilities: | ||
Total derivative liabilities | 1.2 | 0 |
RINs Obligation | 0 | 0 |
Liability Awards | 0 | 0 |
Total recurring liabilities at fair value | (1.2) | 0 |
Inventory Financing Obligations | Fair Value, Measurements, Recurring | ||
Assets: | ||
Total derivative assets | 0 | 1.5 |
Inventory Financing Obligations | Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Total derivative assets | 0 | 0 |
Inventory Financing Obligations | Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Total derivative assets | 0 | 0 |
Inventory Financing Obligations | Fair Value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Total derivative assets | 0 | 1.5 |
Diesel crack spread swaps | Fair Value, Measurements, Recurring | ||
Assets: | ||
Total derivative assets | (0.2) | (7.4) |
Diesel crack spread swaps | Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Total derivative assets | 0 | 0 |
Diesel crack spread swaps | Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Total derivative assets | 0 | 0 |
Diesel crack spread swaps | Fair Value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Total derivative assets | (0.2) | (7.4) |
Diesel percentage basis crack spread swaps | Fair Value, Measurements, Recurring | ||
Assets: | ||
Total derivative assets | (0.2) | 6 |
Diesel percentage basis crack spread swaps | Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Total derivative assets | 0 | 0 |
Diesel percentage basis crack spread swaps | Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Total derivative assets | 0 | 0 |
Diesel percentage basis crack spread swaps | Fair Value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Total derivative assets | (0.2) | 6 |
WCS crude oil basis swaps | Fair Value, Measurements, Recurring | ||
Assets: | ||
Total derivative assets | 0 | (14.9) |
WCS crude oil basis swaps | Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Total derivative assets | 0 | 0 |
WCS crude oil basis swaps | Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Total derivative assets | 0 | 0 |
WCS crude oil basis swaps | Fair Value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Total derivative assets | 0 | (14.9) |
WCS crude oil percentage basis swap | Fair Value, Measurements, Recurring | ||
Assets: | ||
Total derivative assets | 0 | 6.1 |
WCS crude oil percentage basis swap | Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Total derivative assets | 0 | 0 |
WCS crude oil percentage basis swap | Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Total derivative assets | 0 | 0 |
WCS crude oil percentage basis swap | Fair Value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Total derivative assets | 0 | 6.1 |
Midland crude oil basis swap purchases [Member] | Fair Value, Measurements, Recurring | ||
Assets: | ||
Total derivative assets | 0 | (8.1) |
Midland crude oil basis swap purchases [Member] | Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Total derivative assets | 0 | 0 |
Midland crude oil basis swap purchases [Member] | Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Total derivative assets | 0 | 0 |
Midland crude oil basis swap purchases [Member] | Fair Value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Total derivative assets | 0 | (8.1) |
2-1-1- Crack Spread Swap [Member] | Fair Value, Measurements, Recurring | ||
Assets: | ||
Total derivative assets | (0.3) | 0 |
2-1-1- Crack Spread Swap [Member] | Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Total derivative assets | 0 | 0 |
2-1-1- Crack Spread Swap [Member] | Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Total derivative assets | 0 | 0 |
2-1-1- Crack Spread Swap [Member] | Fair Value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Total derivative assets | (0.3) | 0 |
Inventory Financing Obligations | Fair Value, Measurements, Recurring | ||
Derivative liabilities: | ||
Total derivative liabilities | 1.2 | 0 |
Inventory Financing Obligations | Fair Value, Measurements, Recurring | Level 1 | ||
Derivative liabilities: | ||
Total derivative liabilities | 0 | 0 |
Inventory Financing Obligations | Fair Value, Measurements, Recurring | Level 2 | ||
Derivative liabilities: | ||
Total derivative liabilities | 0 | 0 |
Inventory Financing Obligations | Fair Value, Measurements, Recurring | Level 3 | ||
Derivative liabilities: | ||
Total derivative liabilities | $ (1.2) | $ 0 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Net Changes in Fair Value of the Company's Level 3 Financial Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Summary of net changes in fair value of the company's level 3 financial assets and liabilities | ||||
Realized (gain) loss on derivative instruments | $ (5) | $ (2.7) | $ 14.4 | $ (2) |
Unrealized gain (loss) on derivative instruments | (5.4) | (2.4) | (20.2) | 0.4 |
Level 3 | ||||
Summary of net changes in fair value of the company's level 3 financial assets and liabilities | ||||
Fair value at January 1, | $ (10) | 19.8 | (10.4) | |
Realized (gain) loss on derivative instruments | (34.6) | 2.4 | ||
Unrealized gain (loss) on derivative instruments | (20.2) | 0.4 | ||
Settlements | (34.6) | (2.4) | ||
Fair value at June 30, | $ (0.4) | (0.4) | ||
Total gain (loss) included in net loss attributable to changes in unrealized gain relating to financial assets and liabilities held as of June 30, | $ (20.2) | $ 0.4 |
Fair Value Measurements - Sum_3
Fair Value Measurements - Summary of the Company's Carrying and Estimated Fair Value of the Company's Financial Instruments, Carried at Adjusted Historical Cost (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value [Member] | Level 1 | ||
Financial Instrument: | ||
Senior notes | $ 1,400.4 | $ 1,287.4 |
Fair Value [Member] | Level 3 | ||
Financial Instrument: | ||
Finance lease and other obligations | 6.9 | 47.6 |
Carrying value [Member] | Level 1 | ||
Financial Instrument: | ||
Senior notes | 1,425.9 | 1,560.7 |
Carrying value [Member] | Level 3 | ||
Financial Instrument: | ||
Finance lease and other obligations | $ 6.9 | $ 47.6 |
Earnings Per Unit - Summary of
Earnings Per Unit - Summary of Computation of Basic and Diluted Earnings Per Limited Partner Unit (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Net loss from continuing operations | $ (4.6) | $ (16) | $ (5) | $ (70.1) | ||
General partner’s interest in net loss from continuing operations | (0.1) | (0.4) | (0.1) | (1.5) | ||
Net loss available to limited partners | $ (4.5) | $ (16.1) | $ (4.9) | $ (71.7) | ||
Denominator [Abstract] | ||||||
Basic and Diluted | 78,299,472 | 77,783,879 | 78,174,976 | 77,643,006 | ||
Basic Units [Abstract] | ||||||
From continuing operations | $ (0.06) | $ (0.20) | $ (0.06) | $ (0.88) | ||
From discontinued operations | 0 | (0.01) | 0 | (0.04) | ||
Limited partners’ interest | (0.06) | (0.21) | (0.06) | (0.92) | ||
Diluted Units [Abstract] | ||||||
From continuing operations | (0.06) | (0.20) | (0.06) | (0.88) | ||
From discontinued operations | 0 | (0.01) | 0 | (0.04) | ||
Limited partners' interest | $ (0.06) | $ (0.21) | $ (0.06) | $ (0.92) | ||
Weighted Average Number of Shares Outstanding, Diluted | 78,299,472 | 77,783,879 | [1] | 78,174,976 | 77,643,006 | [1] |
Dilutive phantom units excluded (in shares) | 100,000 | 200,000 | 100,000 | 200,000 | ||
Continuing Operations | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
General partner’s interest in net loss from continuing operations | $ (0.1) | $ (0.3) | $ 0.1 | $ (1.4) | ||
Net loss available to limited partners | (4.5) | (15.7) | (4.9) | (68.7) | ||
Discontinued Operations, Disposed of by Sale | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Net loss available to limited partners | 0 | $ (0.4) | 0 | $ (3) | ||
Consolidated Entities [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Net loss from continuing operations | $ 0 | $ 0 | ||||
[1] | Total diluted weighted average limited partner units outstanding excludes 0.1 million for the three and nine months ended September 30, 2019 and 0.2 million for the three and nine months ended September 30, 2018, consisting of unvested phantom units. |
Segments and Related Informat_3
Segments and Related Information - Schedule of Reportable Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Sales | $ 929.6 | $ 2,677.8 | ||
Gain (loss) from unconsolidated affiliates | (3.8) | $ (3.7) | ||
Adjusted EBITDA | 73.5 | $ 54.5 | 250.8 | 210.2 |
Reconciling items to net loss: | ||||
Depreciation and amortization | 33.5 | 32.3 | 99.1 | 97.5 |
Gain on sale of unconsolidated affiliate | (1.2) | |||
Realized loss on derivatives, not reflected in net income (loss) | 0.7 | 2.8 | ||
Non-recurring charges | 1.3 | 1.3 | ||
Unrealized (gain) loss on derivatives | 5.4 | 2.4 | 20.2 | (0.4) |
Interest expense | 33.8 | 37.7 | 99.2 | 120.4 |
(Gain) loss on debt extinguishment | 0 | 0 | (0.7) | 58.8 |
Loss on impairment and disposal of assets | 3.2 | 0 | 31.1 | 0 |
Equity based compensation and other items | 0.4 | (3) | 6.1 | 0.2 |
Income tax expense from continuing operations | 0.5 | 0.4 | 0.7 | 1 |
Net loss from continuing operations | (4.6) | (16) | (5) | (70.1) |
External Customers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 929.6 | 953.5 | 2,677.8 | 2,649.5 |
Intersegment Sales [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Specialty Product [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 375.6 | 373.3 | 1,119.4 | 1,121.4 |
Gain (loss) from unconsolidated affiliates | (3.8) | 3.7 | ||
Adjusted EBITDA | 52.5 | 36.6 | 171.3 | 129.3 |
Reconciling items to net loss: | ||||
Depreciation and amortization | 12.9 | 12.1 | 36.6 | 37.5 |
Gain on sale of unconsolidated affiliate | (1.2) | |||
Realized loss on derivatives, not reflected in net income (loss) | 0.1 | 0.5 | ||
Operating Segments [Member] | Specialty Product [Member] | External Customers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 355.8 | 349.2 | 1,052.4 | 1,053.6 |
Operating Segments [Member] | Specialty Product [Member] | Intersegment Sales [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 19.8 | 24.1 | 67 | 67.8 |
Operating Segments [Member] | Fuel Product [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 588.1 | 625.2 | 1,663.1 | 1,642.7 |
Gain (loss) from unconsolidated affiliates | 0 | 0 | ||
Adjusted EBITDA | 44.1 | 41.9 | 155.5 | 155.3 |
Reconciling items to net loss: | ||||
Depreciation and amortization | 18.6 | 18.1 | 56.8 | 53.4 |
Gain on sale of unconsolidated affiliate | 0 | |||
Realized loss on derivatives, not reflected in net income (loss) | 0.6 | 2.3 | ||
Operating Segments [Member] | Fuel Product [Member] | External Customers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 573.8 | 604.3 | 1,625.4 | 1,595.9 |
Operating Segments [Member] | Fuel Product [Member] | Intersegment Sales [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 14.3 | 20.9 | 37.7 | 46.8 |
Operating Segments [Member] | Corporate Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Adjusted EBITDA | (23.1) | (24) | (76) | (74.4) |
Reconciling items to net loss: | ||||
Depreciation and amortization | 2 | 2.1 | 5.7 | 6.6 |
Gain on sale of unconsolidated affiliate | 0 | |||
Realized loss on derivatives, not reflected in net income (loss) | 0 | 0 | ||
Operating Segments [Member] | Corporate Segment [Member] | External Customers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Corporate Segment [Member] | Intersegment Sales [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | (34.1) | (45) | (104.7) | (114.6) |
Gain (loss) from unconsolidated affiliates | 0 | |||
Adjusted EBITDA | 0 | 0 | ||
Reconciling items to net loss: | ||||
Depreciation and amortization | 0 | 0 | 0 | |
Gain on sale of unconsolidated affiliate | ||||
Realized loss on derivatives, not reflected in net income (loss) | 0 | 0 | ||
Eliminations [Member] | External Customers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 0 | 0 | 0 | |
Eliminations [Member] | Intersegment Sales [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | (34.1) | (45) | (104.7) | (114.6) |
Oil and Gas, Refining and Marketing [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | $ 929.6 | $ 953.5 | $ 2,677.8 | $ 2,649.5 |
Segments and Related Informat_4
Segments and Related Information - Schedule of Major Product Category Sales (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Major product category sales | ||||
Sales | $ 929.6 | $ 2,677.8 | ||
Product Concentration Risk [Member] | ||||
Major product category sales | ||||
Sales, percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Product Concentration Risk [Member] | Specialty Product [Member] | ||||
Major product category sales | ||||
Sales | $ 355.8 | $ 349.2 | $ 1,052.4 | $ 1,053.6 |
Sales, percentage | 38.30% | 36.60% | 39.30% | 39.80% |
Product Concentration Risk [Member] | Fuel Product [Member] | ||||
Major product category sales | ||||
Sales | $ 573.8 | $ 604.3 | $ 1,625.4 | $ 1,595.9 |
Sales, percentage | 61.70% | 63.40% | 60.70% | 60.20% |
Lubricating Oils [Member] | Product Concentration Risk [Member] | Specialty Product [Member] | ||||
Major product category sales | ||||
Sales | $ 156.1 | $ 146.6 | $ 460.7 | $ 448.3 |
Sales, percentage | 16.80% | 15.40% | 17.20% | 16.90% |
Solvents [Member] | Product Concentration Risk [Member] | Specialty Product [Member] | ||||
Major product category sales | ||||
Sales | $ 86.1 | $ 88.3 | $ 254.2 | $ 254.3 |
Sales, percentage | 9.30% | 9.30% | 9.50% | 9.60% |
Waxes [Member] | Product Concentration Risk [Member] | Specialty Product [Member] | ||||
Major product category sales | ||||
Sales | $ 30.1 | $ 30.1 | $ 92.6 | $ 87.8 |
Sales, percentage | 3.20% | 3.20% | 3.50% | 3.30% |
Packaged and Synthetic Specialty Products [Member] | ||||
Major product category sales | ||||
Sales | $ 59.6 | $ 64 | $ 180.2 | $ 204.9 |
Packaged and Synthetic Specialty Products [Member] | Product Concentration Risk [Member] | Specialty Product [Member] | ||||
Major product category sales | ||||
Sales | $ 59.6 | $ 64 | $ 180.2 | $ 204.9 |
Sales, percentage | 6.40% | 6.60% | 6.70% | 7.80% |
Other [Member] | ||||
Major product category sales | ||||
Sales | $ 296.2 | $ 285.2 | $ 872.2 | $ 848.7 |
Other [Member] | Product Concentration Risk [Member] | Specialty Product [Member] | ||||
Major product category sales | ||||
Sales | $ 23.9 | $ 20.2 | $ 64.7 | $ 58.3 |
Sales, percentage | 2.60% | 2.10% | 2.40% | 2.20% |
Gasoline [Member] | Product Concentration Risk [Member] | Fuel Product [Member] | ||||
Major product category sales | ||||
Sales | $ 189.5 | $ 191.2 | $ 530.9 | $ 528.8 |
Sales, percentage | 20.40% | 20.10% | 19.80% | 20.00% |
Diesel [Member] | Product Concentration Risk [Member] | Fuel Product [Member] | ||||
Major product category sales | ||||
Sales | $ 225.4 | $ 257.5 | $ 669.4 | $ 681.5 |
Sales, percentage | 24.20% | 27.00% | 25.00% | 25.70% |
Jet fuel [Member] | Product Concentration Risk [Member] | Fuel Product [Member] | ||||
Major product category sales | ||||
Sales | $ 39.5 | $ 28.1 | $ 100.8 | $ 78.9 |
Sales, percentage | 4.20% | 2.90% | 3.80% | 3.00% |
Asphalt, Heavy Fuel Oils and Other [Member] | Product Concentration Risk [Member] | Fuel Product [Member] | ||||
Major product category sales | ||||
Sales | $ 119.4 | $ 127.5 | $ 324.3 | $ 306.7 |
Sales, percentage | 12.80% | 13.40% | 12.10% | 11.50% |
Oil and Gas, Refining and Marketing [Member] | ||||
Major product category sales | ||||
Sales | $ 929.6 | $ 953.5 | $ 2,677.8 | $ 2,649.5 |
Oil and Gas, Refining and Marketing [Member] | Product Concentration Risk [Member] | ||||
Major product category sales | ||||
Sales | $ 929.6 | $ 953.5 | $ 2,677.8 | $ 2,649.5 |
Segments and Related Informat_5
Segments and Related Information - Narrative (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018supplier | Sep. 30, 2019 | Sep. 30, 2018supplier | |
Segment Reporting Information [Line Items] | ||||
Number of customers representing 10% or greater of consolidated sales | 0 | 0 | 0 | 0 |
number of major suppliers | 2 | 2 | 2 | 2 |
Disclosure on Geographic Areas, Description of Revenue from External Customers | 0.1 | .1 | .1 | .1 |
Supplier Concentration Risk [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of crude oil supply from 2 suppliers | 67.50% | 56.50% | 64.60% | 58.50% |
Leases Leases - Narrative (Deta
Leases Leases - Narrative (Details) | 3 Months Ended | 9 Months Ended |
Mar. 31, 2019 | Sep. 30, 2019 | |
Lessee, Finance Lease, Option to Extend | 0 | |
Lessor, Operating Lease, Option to Extend | 0 | |
Lease, Practical Expedients, Package [true false] | true | |
Lease, Practical Expedient, Use of Hindsight [true false] | false | |
Minimum [Member] | ||
Lessee, Finance Lease, Renewal Term | 1 year | |
Lessee, Operating Lease, Renewal Term | 1 year | |
Maximum [Member] | ||
Lessee, Finance Lease, Renewal Term | 15 years | |
Lessee, Finance Lease, Option to Extend | P35Y | |
Lessee, Operating Lease, Renewal Term | 15 years | |
Lessor, Operating Lease, Option to Extend | P35Y |
Leases Leases - Lease Assets an
Leases Leases - Lease Assets and Liabilities (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2019 | Dec. 31, 2018 | |||
Leases [Abstract] | ||||
Operating Lease Assets | $ 110.5 | [1] | $ 0 | |
Finance Lease Assets | [2] | 3.2 | ||
Total Leased Asset | 113.7 | |||
Current portion of operating leases | 62.3 | [1] | 0 | |
Current portion of finance leases | 0.3 | |||
Long-term operating lease liabilities | 48.9 | [1] | $ 0 | |
Long-term finance lease liabilities | 2.5 | |||
Total Lease Liability | 114 | |||
Finance Lease, Accumulated Amortization | 7.1 | |||
Lease, Operating Right-of-Use Asset and liability additions | $ 2.7 | |||
[1] | (2) In the third quarter of 2019, the Company had additions to its operating lease right of use assets and operating lease liabilities of approximately $2.7 million. | |||
[2] | (1) Finance lease assets are recorded net of accumulated amortization of $7.1 million as of September 30, 2019. |
Leases Leases - Lease Cost (Det
Leases Leases - Lease Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Fixed operating lease cost | $ 16.7 | $ 50.4 |
Short-term Operating Lease Cost | 2.2 | 5.6 |
Variable Operating Lease Cost | 0.4 | 1.1 |
Finance Lease Amortization of ROU Asset | 0.4 | 1.1 |
Interest on lease liabilities | 0.2 | 1.3 |
Total Lease Cost | $ 19.9 | 59.5 |
LVT Feedstock Agreement [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Variable Operating Lease Cost | $ 0.5 |
Leases Leases - Maturity of Lea
Leases Leases - Maturity of Lease Liabilities (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2019USD ($) | ||
Leases [Abstract] | ||
2019 | $ 17.3 | [1] |
2020 | 65.8 | [1] |
2021 | 14.6 | [1] |
2022 | 10.3 | [1] |
2023 | 6.9 | [1] |
Thereafter | 7.2 | [1] |
Total Operating Lease Payments | 122.1 | [1] |
Less: Interest | 10.9 | [1] |
Present value of operating lease liabilities | $ 111.2 | [1] |
Operating Lease Material Option to Extend | 0 | |
Operating Lease, Lease Not yet Commenced, Description | 0 | |
2019 | $ 0.1 | [2] |
2020 | 0.5 | [2] |
2021 | 0.5 | [2] |
2022 | 0.5 | [2] |
2023 | 0.5 | [2] |
Thereafter | 1.6 | [2] |
Total Finance Lease Payments | 3.7 | [2] |
Less: Interest | 0.9 | [2] |
Present value of Finance Lease Liability | $ 2.8 | [2] |
Finance Lease Material Option to Extend | 0 | |
Finance Lease, Lease Not yet Commenced, Description | 0 | |
2019 | $ 17.4 | |
2020 | 66.3 | |
2021 | 15.1 | |
2022 | 10.8 | |
2023 | 7.4 | |
Thereafter | 8.8 | |
Total Lease Liability, Payments due | 125.8 | |
Less: Total Interest | 11.8 | |
Present Value of Total Lease Liability | $ 114 | |
[1] | As of September 30, 2019, the Company’s operating lease payments included no material options to extend lease terms that are reasonably certain of being exercised. The Company has no legally binding minimum lease payments for leases signed but not yet commenced as of September 30, 2019. | |
[2] | As of September 30, 2019, the Company’s finance lease payments included no material options to extend lease terms that are reasonably certain of being exercised. In addition, the Company has no legally binding minimum lease payments for leases that have been signed but not yet commenced as of September 30, 2019. |
Leases Leases - Lease Term and
Leases Leases - Lease Term and Discount Rate (Details) | Sep. 30, 2019 |
Leases [Abstract] | |
Operating Lease, Weighted Average Remaining Lease Term | 2 years 7 months |
Finance Lease, Weighted Average Remaining Lease Term | 7 years 3 months |
Operating Lease, Weighted Average Discount Rate, Percent | 7.30% |
Finance Lease, Weighted Average Discount Rate, Percent | 8.80% |
Guarantor Disclosures (Details)
Guarantor Disclosures (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |||
Sales | $ 929.6 | $ 2,677.8 | ||||||||
Contract Receivable | 216 | 216 | $ 177.7 | |||||||
Other accounts receivable | 24.7 | 24.7 | 20.3 | |||||||
Total accounts receivable | 240.7 | 240.7 | 198 | |||||||
Inventories | 293.3 | 293.3 | 284.1 | |||||||
Derivative assets | 0.8 | 0.8 | 18.3 | |||||||
Prepaid expenses and other current assets | 11.5 | 11.5 | 13.9 | |||||||
Total current assets | 710.5 | 710.5 | 670 | |||||||
Property, plant and equipment, net | 1,050.1 | 1,050.1 | 1,098.1 | |||||||
Investment in unconsolidated affiliates | 5.7 | 5.7 | 25.4 | |||||||
Goodwill | 171.4 | 171.4 | 171.4 | |||||||
Other intangible assets, net | 75.4 | 75.4 | 88 | |||||||
Operating lease right-of-use assets | 110.5 | [1] | 110.5 | [1] | 0 | |||||
Other noncurrent assets, net | 37.7 | 37.7 | 34.6 | |||||||
Total assets | (2,161.3) | (2,161.3) | (2,087.5) | |||||||
Accounts payable | 270.2 | 270.2 | 200.6 | |||||||
Accrued interest payable | 40.9 | 40.9 | 30.7 | |||||||
Accrued salaries, wages and benefits | 31.9 | 31.9 | 25.7 | |||||||
Other taxes payable | 21.2 | 21.2 | 15.2 | |||||||
Obligations under inventory financing agreements | 117 | 117 | 105.3 | |||||||
Total | 70.4 | 70.4 | 33.8 | |||||||
Current portion of operating leases | 62.3 | [1] | 62.3 | [1] | 0 | |||||
Current portion of long-term debt | 123.5 | 123.5 | 3.8 | |||||||
Total current liabilities | (737.4) | (737.4) | (415.1) | |||||||
Pension and postretirement benefit obligations | 4.5 | 4.5 | 4.5 | |||||||
Other long-term liabilities | 1.5 | 1.5 | 1.5 | |||||||
Long-term operating lease liabilities | 48.9 | [1] | 48.9 | [1] | 0 | |||||
Long-term debt, less current portion | 1,306.2 | 1,306.2 | 1,600.7 | |||||||
Total liabilities | (2,098.5) | (2,098.5) | (2,021.8) | |||||||
Limited partners’ interest 77,556,190 units and 77,177,159 units issued and outstanding as of September 30, 2019 and December 31, 2018, respectively | 57.5 | 57.5 | 61.6 | |||||||
General Partners' Capital Account | 12.8 | 12.8 | 12.8 | |||||||
Accumulated other comprehensive loss | (7.5) | (7.5) | (8.7) | |||||||
Total partners’ capital | 62.8 | $ 51.2 | 62.8 | $ 51.2 | $ 67.1 | 65.7 | $ 66.6 | $ 119.9 | ||
Total liabilities and partners’ capital | (2,161.3) | (2,161.3) | (2,087.5) | |||||||
Cost of sales | 811.8 | 2,316.9 | ||||||||
Gross profit | 117.8 | 103.3 | 360.9 | 335.8 | ||||||
Selling | 12.6 | 12.2 | 40.2 | 39.6 | ||||||
General and administrative | 32.8 | 29.2 | 105.5 | 95.5 | ||||||
Transportation | 28.4 | 36.4 | 95.9 | 99.7 | ||||||
Taxes, Other | 5.7 | 5.9 | 15.5 | 13.2 | ||||||
Operating income | 33.4 | 21.6 | 71.9 | 106.5 | ||||||
Interest expense | (33.8) | (37.7) | (99.2) | (120.4) | ||||||
Gain on sale of unconsolidated affiliate | (1.2) | |||||||||
Net loss from continuing operations before income taxes | (4.1) | (15.6) | (4.3) | (69.1) | ||||||
Income tax expense from continuing operations | 0.5 | 0.4 | 0.7 | 1 | ||||||
Net loss from continuing operations | (4.6) | (16) | (5) | (70.1) | ||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (4.6) | (15.8) | (3.8) | (70.3) | ||||||
Net loss from discontinued operations, net of tax | 0 | (0.5) | 0 | (3.1) | ||||||
Net loss | (4.6) | (16.5) | (5) | (73.2) | ||||||
Net loss from discontinued operations | 0 | 3.1 | ||||||||
Depreciation and amortization | 82.6 | 88.8 | ||||||||
Amortization of turnaround costs | 16.5 | 8.7 | ||||||||
Non-cash interest expense | 4.9 | 6.1 | ||||||||
(Gain) loss on debt extinguishment | 0 | 0 | (0.7) | 58.8 | ||||||
Gain (loss) on derivative instruments | (5) | (2.7) | 14.4 | (2) | ||||||
Gain (loss) from unconsolidated affiliates | 3.8 | 3.7 | ||||||||
Unrealized (gain) loss on derivative instruments | 5.4 | 2.4 | 20.2 | (0.4) | ||||||
Loss on impairment and disposal of assets | 3.2 | 0 | 31.1 | 0 | ||||||
Other operating income | (2) | (18.7) | ||||||||
Loss on impairment and disposal of assets | 31.1 | 0 | ||||||||
Equity based compensation | 4.9 | 2.8 | ||||||||
Lower of cost or market inventory adjustment | 2.7 | 3 | (38.8) | (12) | ||||||
Operating lease expense | 57.1 | 0 | ||||||||
Operating lease payments | (57.1) | 0 | ||||||||
Other non-cash activities | (7) | (3) | ||||||||
Accounts receivable | (49.8) | 29 | ||||||||
Inventories | 29.6 | (34.4) | ||||||||
Prepaid expenses and other current assets | 4.6 | (3.8) | ||||||||
Derivative activity | (0.4) | (0.4) | ||||||||
Turnaround costs | (16.8) | (11.1) | ||||||||
Accounts payable | 61.7 | (32.5) | ||||||||
Accrued interest payable | 10.8 | (7) | ||||||||
Accrued salaries, wages and benefits | 2.6 | (4.5) | ||||||||
Other taxes payable | 6 | 8.5 | ||||||||
Other liabilities | (3.1) | (52.7) | ||||||||
Net cash provided by (used in) operating activities | 153.9 | (29.3) | ||||||||
Additions to property, plant and equipment | (27.4) | (41.3) | ||||||||
Investment in unconsolidated affiliate | 0 | (3.8) | ||||||||
Proceeds from sale of unconsolidated affiliate | 5 | 9.9 | ||||||||
Proceeds from sale of business, net | 0 | 44.8 | ||||||||
Proceeds from sale of property, plant and equipment | 3.7 | 0.3 | ||||||||
Net cash provided by discontinued investing activities | 5 | 3.6 | ||||||||
Net cash provided by (used in) investing activities | (13.7) | 13.5 | ||||||||
Repayments of borrowings — revolving credit facility | 0 | (166.9) | ||||||||
Repayments of borrowings — senior notes | (137.3) | (400) | ||||||||
Payments on finance lease obligations | (0.9) | (2.2) | ||||||||
Proceeds from inventory financing agreements | 848.7 | 867 | ||||||||
Payments on inventory financing agreements | (840.7) | (850.6) | ||||||||
Proceeds from other financing obligations | 0 | 4.6 | ||||||||
Payments on other financing obligations | (1.6) | (2.3) | ||||||||
Payments on extinguishment of debt | 0 | 46.6 | ||||||||
Debt issuance costs | 0 | (2.9) | ||||||||
Contributions from Calumet GP, LLC | 0.1 | 0.1 | ||||||||
Net cash used in financing activities | (131.7) | (433) | ||||||||
Net increase (decrease) in cash and cash equivalents | 8.5 | (448.8) | ||||||||
Cash and cash equivalents | 164.2 | 65.5 | 164.2 | 65.5 | 155.7 | $ 514.3 | ||||
Non-cash property, plant and equipment additions | 12.3 | 1.1 | ||||||||
Parent [Member] | ||||||||||
Sales | 0 | 0 | ||||||||
Total accounts receivable | 0 | 0 | ||||||||
Inventories | 0 | 0 | ||||||||
Prepaid expenses and other current assets | 0 | 0 | ||||||||
Total current assets | 0 | 0 | ||||||||
Property, plant and equipment, net | 0 | 0 | ||||||||
Intangible Assets, Net (Including Goodwill) | 0 | 0 | ||||||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 0 | 0 | ||||||||
Other noncurrent assets, net | 0 | 0 | ||||||||
Accounts Receivable, Related Parties | 0 | 0 | ||||||||
Total assets | 0 | 0 | ||||||||
Accounts payable | 0 | 0 | ||||||||
Accrued Liabilities and Other Liabilities | 0 | 0 | ||||||||
Current portion of long-term debt | 0 | 0 | ||||||||
Accounts Payable, Related Parties | 0 | 0 | ||||||||
Total current liabilities | 0 | 0 | ||||||||
Deferred Income Tax Liabilities, Net | 0 | 0 | ||||||||
Other long-term liabilities | 0 | 0 | ||||||||
Long-term debt, less current portion | 0 | 0 | ||||||||
Total liabilities | 0 | 0 | ||||||||
Total partners’ capital | 0 | 0 | ||||||||
Total liabilities and partners’ capital | 0 | 0 | ||||||||
Cost of sales | 0 | 0 | ||||||||
Gross profit | 0 | 0 | ||||||||
Selling, General and Administrative Expense | 0 | 0 | ||||||||
Operating income | 0 | 0 | ||||||||
Interest expense | 0 | 0 | ||||||||
Equity in net income (loss) of subsidiary | 0 | |||||||||
Other Income | 0 | 0 | ||||||||
Net loss from continuing operations before income taxes | 0 | 0 | ||||||||
Income tax expense from continuing operations | 0 | |||||||||
Net loss from continuing operations | 0 | 0 | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 0 | |||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 0 | |||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | 0 | |||||||||
Loss on impairment and disposal of assets | 0 | 0 | ||||||||
Other operating income | 0 | 0 | ||||||||
Net cash provided by (used in) operating activities | 0 | |||||||||
Additions to property, plant and equipment | 0 | |||||||||
Proceeds from sale of unconsolidated affiliate | 0 | |||||||||
Proceeds from sale of property, plant and equipment | 0 | |||||||||
Net cash provided by discontinued investing activities | 0 | |||||||||
(Contributions) Distributions to subsidiary | 0 | |||||||||
Net cash provided by (used in) investing activities | 0 | |||||||||
Repayments of borrowings — senior notes | 0 | |||||||||
Proceeds (Payments) from Purchase Supply Agreements, net | 0 | |||||||||
Payments on other financing obligations | 0 | |||||||||
Changes in intercompany balances | 0 | |||||||||
Contributions from Calumet GP, LLC | 0 | |||||||||
Net cash used in financing activities | 0 | |||||||||
Net increase (decrease) in cash and cash equivalents | 0 | |||||||||
Cash and cash equivalents | 0 | 0 | 0 | |||||||
Subsidiary Issuer [Member] | ||||||||||
Sales | 0 | 0 | ||||||||
Total accounts receivable | 0 | 0 | ||||||||
Inventories | 0 | 0 | ||||||||
Prepaid expenses and other current assets | 0 | 0 | ||||||||
Total current assets | 0 | 0 | ||||||||
Property, plant and equipment, net | 0 | 0 | ||||||||
Intangible Assets, Net (Including Goodwill) | 0 | 0 | ||||||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 0 | 0 | ||||||||
Other noncurrent assets, net | 0 | 0 | ||||||||
Accounts Receivable, Related Parties | 0 | 0 | ||||||||
Total assets | 0 | 0 | ||||||||
Accounts payable | 0 | 0 | ||||||||
Accrued Liabilities and Other Liabilities | 0 | 0 | ||||||||
Current portion of long-term debt | 0 | 0 | ||||||||
Accounts Payable, Related Parties | 0 | 0 | ||||||||
Total current liabilities | 0 | 0 | ||||||||
Deferred Income Tax Liabilities, Net | 0 | 0 | ||||||||
Other long-term liabilities | 0 | 0 | ||||||||
Long-term debt, less current portion | 0 | 0 | ||||||||
Total liabilities | 0 | 0 | ||||||||
Total partners’ capital | 0 | 0 | ||||||||
Total liabilities and partners’ capital | 0 | 0 | ||||||||
Cost of sales | 0 | 0 | ||||||||
Gross profit | 0 | 0 | ||||||||
Selling, General and Administrative Expense | 0 | 0 | ||||||||
Operating income | 0 | 0 | ||||||||
Interest expense | 0 | 0 | ||||||||
Equity in net income (loss) of subsidiary | 0 | 0 | ||||||||
Other Income | 0 | 0 | ||||||||
Net loss from continuing operations before income taxes | 0 | 0 | ||||||||
Income tax expense from continuing operations | 0 | 0 | ||||||||
Net loss from continuing operations | 0 | 0 | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 0 | |||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 0 | |||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | 0 | |||||||||
Loss on impairment and disposal of assets | 0 | 0 | ||||||||
Other operating income | 0 | 0 | ||||||||
Net cash provided by (used in) operating activities | 0 | |||||||||
Additions to property, plant and equipment | 0 | |||||||||
Proceeds from sale of unconsolidated affiliate | 0 | |||||||||
Proceeds from sale of property, plant and equipment | 0 | |||||||||
Net cash provided by discontinued investing activities | 0 | |||||||||
(Contributions) Distributions to subsidiary | 0 | |||||||||
Net cash provided by (used in) investing activities | 0 | |||||||||
Repayments of borrowings — senior notes | 0 | |||||||||
Proceeds (Payments) from Purchase Supply Agreements, net | 0 | |||||||||
Payments on other financing obligations | 0 | |||||||||
Changes in intercompany balances | 0 | |||||||||
Contributions from Calumet GP, LLC | 0 | |||||||||
Net cash used in financing activities | 0 | |||||||||
Net increase (decrease) in cash and cash equivalents | 0 | |||||||||
Cash and cash equivalents | 0 | 0 | 0 | |||||||
Consolidation, Eliminations [Member] | ||||||||||
Sales | 0 | 0 | ||||||||
Total accounts receivable | 0 | 0 | ||||||||
Inventories | 0 | 0 | ||||||||
Prepaid expenses and other current assets | 0 | 0 | ||||||||
Total current assets | 0 | 0 | ||||||||
Property, plant and equipment, net | 0 | 0 | ||||||||
Intangible Assets, Net (Including Goodwill) | 0 | 0 | ||||||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 0 | 0 | ||||||||
Other noncurrent assets, net | 0 | 0 | ||||||||
Accounts Receivable, Related Parties | 0 | 0 | ||||||||
Total assets | 0 | 0 | ||||||||
Accounts payable | 0 | 0 | ||||||||
Accrued Liabilities and Other Liabilities | 0 | 0 | ||||||||
Current portion of long-term debt | 0 | 0 | ||||||||
Accounts Payable, Related Parties | 0 | 0 | ||||||||
Total current liabilities | 0 | 0 | ||||||||
Deferred Income Tax Liabilities, Net | 0 | 0 | ||||||||
Other long-term liabilities | 0 | 0 | ||||||||
Long-term debt, less current portion | 0 | 0 | ||||||||
Total liabilities | 0 | 0 | ||||||||
Total partners’ capital | 0 | 0 | ||||||||
Total liabilities and partners’ capital | 0 | 0 | ||||||||
Cost of sales | 0 | 0 | ||||||||
Gross profit | 0 | 0 | ||||||||
Selling, General and Administrative Expense | 0 | 0 | ||||||||
Operating income | 0 | 0 | ||||||||
Interest expense | 0 | 0 | ||||||||
Equity in net income (loss) of subsidiary | 0 | 0 | ||||||||
Other Income | 0 | 0 | ||||||||
Net loss from continuing operations before income taxes | 0 | 0 | ||||||||
Income tax expense from continuing operations | 0 | 0 | ||||||||
Net loss from continuing operations | 0 | 0 | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 0 | |||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 0 | |||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | 0 | |||||||||
Loss on impairment and disposal of assets | 0 | 0 | ||||||||
Other operating income | 0 | 0 | ||||||||
Net cash provided by (used in) operating activities | 0 | |||||||||
Additions to property, plant and equipment | 0 | |||||||||
Proceeds from sale of unconsolidated affiliate | 0 | |||||||||
Proceeds from sale of property, plant and equipment | 0 | |||||||||
Net cash provided by discontinued investing activities | 0 | |||||||||
(Contributions) Distributions to subsidiary | 0 | |||||||||
Net cash provided by (used in) investing activities | 0 | |||||||||
Repayments of borrowings — senior notes | 0 | |||||||||
Proceeds (Payments) from Purchase Supply Agreements, net | 0 | |||||||||
Payments on other financing obligations | 0 | |||||||||
Changes in intercompany balances | 0 | |||||||||
Contributions from Calumet GP, LLC | 0 | |||||||||
Net cash used in financing activities | 0 | |||||||||
Net increase (decrease) in cash and cash equivalents | 0 | |||||||||
Cash and cash equivalents | 0 | 0 | 0 | |||||||
Consolidated Entities [Member] | ||||||||||
Sales | 0 | 0 | ||||||||
Total accounts receivable | 0 | 0 | ||||||||
Inventories | 0 | 0 | ||||||||
Prepaid expenses and other current assets | 0 | 0 | ||||||||
Total current assets | 0 | 0 | ||||||||
Property, plant and equipment, net | 0 | 0 | ||||||||
Intangible Assets, Net (Including Goodwill) | 0 | 0 | ||||||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 0 | 0 | ||||||||
Other noncurrent assets, net | 0 | 0 | ||||||||
Accounts Receivable, Related Parties | 0 | 0 | ||||||||
Total assets | 0 | 0 | ||||||||
Accounts payable | 0 | 0 | ||||||||
Accrued Liabilities and Other Liabilities | 0 | 0 | ||||||||
Current portion of long-term debt | 0 | 0 | ||||||||
Accounts Payable, Related Parties | 0 | 0 | ||||||||
Total current liabilities | 0 | 0 | ||||||||
Deferred Income Tax Liabilities, Net | 0 | 0 | ||||||||
Other long-term liabilities | 0 | 0 | ||||||||
Long-term debt, less current portion | 0 | 0 | ||||||||
Total liabilities | 0 | 0 | ||||||||
Total partners’ capital | 0 | 0 | ||||||||
Total liabilities and partners’ capital | 0 | 0 | ||||||||
Cost of sales | 0 | 0 | ||||||||
Gross profit | 0 | 0 | ||||||||
Selling, General and Administrative Expense | 0 | 0 | ||||||||
Operating income | 0 | 0 | ||||||||
Interest expense | 0 | 0 | ||||||||
Equity in net income (loss) of subsidiary | 0 | 0 | ||||||||
Other Income | 0 | 0 | ||||||||
Net loss from continuing operations before income taxes | 0 | 0 | ||||||||
Income tax expense from continuing operations | 0 | 0 | ||||||||
Net loss from continuing operations | 0 | 0 | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 0 | |||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 0 | |||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | 0 | |||||||||
Loss on impairment and disposal of assets | 0 | 0 | ||||||||
Other operating income | 0 | 0 | ||||||||
Net cash provided by (used in) operating activities | 0 | |||||||||
Additions to property, plant and equipment | 0 | |||||||||
Proceeds from sale of unconsolidated affiliate | 0 | |||||||||
Proceeds from sale of property, plant and equipment | 0 | |||||||||
Net cash provided by discontinued investing activities | 0 | |||||||||
(Contributions) Distributions to subsidiary | 0 | |||||||||
Net cash provided by (used in) investing activities | 0 | |||||||||
Repayments of borrowings — senior notes | 0 | |||||||||
Proceeds (Payments) from Purchase Supply Agreements, net | 0 | |||||||||
Payments on other financing obligations | 0 | |||||||||
Changes in intercompany balances | 0 | |||||||||
Contributions from Calumet GP, LLC | 0 | |||||||||
Net cash used in financing activities | 0 | |||||||||
Net increase (decrease) in cash and cash equivalents | 0 | |||||||||
Cash and cash equivalents | 0 | 0 | 0 | |||||||
Guarantor Subsidiaries [Member] | ||||||||||
Sales | 0 | 0 | ||||||||
Total accounts receivable | 0 | 0 | ||||||||
Inventories | 0 | 0 | ||||||||
Prepaid expenses and other current assets | 0 | 0 | ||||||||
Total current assets | 0 | 0 | ||||||||
Property, plant and equipment, net | 0 | 0 | ||||||||
Intangible Assets, Net (Including Goodwill) | 0 | 0 | ||||||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 0 | 0 | ||||||||
Other noncurrent assets, net | 0 | 0 | ||||||||
Accounts Receivable, Related Parties | 0 | 0 | ||||||||
Total assets | 0 | 0 | ||||||||
Accounts payable | 0 | 0 | ||||||||
Accrued Liabilities and Other Liabilities | 0 | 0 | ||||||||
Current portion of long-term debt | 0 | 0 | ||||||||
Accounts Payable, Related Parties | 0 | 0 | ||||||||
Total current liabilities | 0 | 0 | ||||||||
Deferred Income Tax Liabilities, Net | 0 | 0 | ||||||||
Other long-term liabilities | 0 | 0 | ||||||||
Long-term debt, less current portion | 0 | 0 | ||||||||
Total liabilities | 0 | 0 | ||||||||
Total partners’ capital | 0 | 0 | ||||||||
Total liabilities and partners’ capital | 0 | 0 | ||||||||
Cost of sales | 0 | 0 | ||||||||
Gross profit | 0 | 0 | ||||||||
Selling, General and Administrative Expense | 0 | 0 | ||||||||
Operating income | 0 | 0 | ||||||||
Interest expense | 0 | 0 | ||||||||
Equity in net income (loss) of subsidiary | 0 | 0 | ||||||||
Other Income | 0 | 0 | ||||||||
Net loss from continuing operations before income taxes | 0 | 0 | ||||||||
Income tax expense from continuing operations | 0 | 0 | ||||||||
Net loss from continuing operations | 0 | 0 | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 0 | |||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 0 | |||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | 0 | |||||||||
Loss on impairment and disposal of assets | 0 | 0 | ||||||||
Other operating income | 0 | 0 | ||||||||
Net cash provided by (used in) operating activities | 0 | |||||||||
Additions to property, plant and equipment | 0 | |||||||||
Proceeds from sale of unconsolidated affiliate | 0 | |||||||||
Proceeds from sale of property, plant and equipment | 0 | |||||||||
Net cash provided by discontinued investing activities | 0 | |||||||||
(Contributions) Distributions to subsidiary | 0 | |||||||||
Net cash provided by (used in) investing activities | 0 | |||||||||
Repayments of borrowings — senior notes | 0 | |||||||||
Proceeds (Payments) from Purchase Supply Agreements, net | 0 | |||||||||
Payments on other financing obligations | 0 | |||||||||
Changes in intercompany balances | 0 | |||||||||
Contributions from Calumet GP, LLC | 0 | |||||||||
Net cash used in financing activities | 0 | |||||||||
Net increase (decrease) in cash and cash equivalents | 0 | |||||||||
Cash and cash equivalents | 0 | 0 | 0 | |||||||
Non-Guarantor Subsidiaries [Member] | ||||||||||
Sales | 0 | 0 | ||||||||
Total accounts receivable | 0 | 0 | ||||||||
Inventories | 0 | 0 | ||||||||
Prepaid expenses and other current assets | 0 | 0 | ||||||||
Total current assets | 0 | 0 | ||||||||
Property, plant and equipment, net | 0 | 0 | ||||||||
Intangible Assets, Net (Including Goodwill) | 0 | 0 | ||||||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 0 | 0 | ||||||||
Other noncurrent assets, net | 0 | 0 | ||||||||
Accounts Receivable, Related Parties | 0 | 0 | ||||||||
Total assets | 0 | 0 | ||||||||
Accounts payable | 0 | 0 | ||||||||
Accrued Liabilities and Other Liabilities | 0 | 0 | ||||||||
Current portion of long-term debt | 0 | 0 | ||||||||
Accounts Payable, Related Parties | 0 | 0 | ||||||||
Total current liabilities | 0 | 0 | ||||||||
Deferred Income Tax Liabilities, Net | 0 | 0 | ||||||||
Other long-term liabilities | 0 | 0 | ||||||||
Long-term debt, less current portion | 0 | 0 | ||||||||
Total liabilities | 0 | 0 | ||||||||
Total partners’ capital | 0 | 0 | ||||||||
Total liabilities and partners’ capital | 0 | 0 | ||||||||
Cost of sales | 0 | 0 | ||||||||
Gross profit | 0 | 0 | ||||||||
Selling, General and Administrative Expense | 0 | 0 | ||||||||
Operating income | 0 | 0 | ||||||||
Interest expense | 0 | 0 | ||||||||
Equity in net income (loss) of subsidiary | 0 | 0 | ||||||||
Other Income | 0 | 0 | ||||||||
Net loss from continuing operations before income taxes | 0 | 0 | ||||||||
Income tax expense from continuing operations | 0 | 0 | ||||||||
Net loss from continuing operations | 0 | 0 | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 0 | |||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 0 | |||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | 0 | |||||||||
Loss on impairment and disposal of assets | 0 | 0 | ||||||||
Other operating income | 0 | 0 | ||||||||
Net cash provided by (used in) operating activities | 0 | |||||||||
Additions to property, plant and equipment | 0 | |||||||||
Proceeds from sale of unconsolidated affiliate | 0 | |||||||||
Proceeds from sale of property, plant and equipment | 0 | |||||||||
Net cash provided by discontinued investing activities | 0 | |||||||||
(Contributions) Distributions to subsidiary | 0 | |||||||||
Net cash provided by (used in) investing activities | 0 | |||||||||
Repayments of borrowings — senior notes | 0 | |||||||||
Proceeds (Payments) from Purchase Supply Agreements, net | 0 | |||||||||
Payments on other financing obligations | 0 | |||||||||
Changes in intercompany balances | 0 | |||||||||
Contributions from Calumet GP, LLC | 0 | |||||||||
Net cash used in financing activities | 0 | |||||||||
Net increase (decrease) in cash and cash equivalents | 0 | |||||||||
Cash and cash equivalents | 0 | 0 | $ 0 | |||||||
Oil and Gas, Refining and Marketing [Member] | ||||||||||
Sales | $ 929.6 | 953.5 | $ 2,677.8 | 2,649.5 | ||||||
Cost of sales | $ 850.2 | $ 2,313.7 | ||||||||
[1] | (2) In the third quarter of 2019, the Company had additions to its operating lease right of use assets and operating lease liabilities of approximately $2.7 million. |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | Nov. 10, 2019 | Oct. 21, 2019 | Oct. 11, 2019 | Sep. 30, 2019 |
Subsequent Event [Line Items] | ||||
TexStar Current Liability | $ 38.1 | |||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Sale of San Antonio | Nov. 10, 2019 | |||
TexStar Settlement | $ 1 | |||
Purchase Commitment, Remaining Minimum Amount Committed | 20.6 | |||
Debt Instrument, Redemption Period, End Date | Oct. 21, 2019 | |||
Notes due April twenty twenty-five at Eleven percent interest payments [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Debt Instrument, Issuance Date | Oct. 11, 2019 | |||
Long-term Debt, Gross | $ 550 | |||
Maturity date | Apr. 15, 2025 | |||
Proceeds from Debt, Net of Issuance Costs | $ 540 | |||
Frequency of interest payment | semiannually | |||
Revolving Credit Facility | ||||
Subsequent Event [Line Items] | ||||
Maturity date | Feb. 28, 2023 | |||
Frequency of interest payment | quarterly | |||
Expansion Feature | $ 99.6 | |||
Notes Due April 2021 at Fixed Rate of 6.5% Interest Payments | ||||
Subsequent Event [Line Items] | ||||
Debt Instrument, Repurchase Amount | $ 49 | |||
Notes Due April 2021 at Fixed Rate of 6.5% Interest Payments | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Debt Instrument, Repurchase Amount | $ 761.2 | |||
San Antonio [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
San Antonio total consideration | 63 | |||
Disposal Group, Not Discontinued Operations [Member] | San Antonio [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net | 17.8 | |||
Disposal Group Partners Capital | 28.1 | |||
Disposal Group, Including Discontinued Operation, Accounts Payable | 46.7 | |||
Disposal Group, Including Discontinued Operation, Accrued Liabilities | 0.2 | |||
Disposal Group, Including Discontinued Operation, Accrued Liabilities, Current | 4.4 | |||
Disposal Group, Including Discontinued Operation, Other Liabilities | 38.2 | |||
Disposal Group, Including Discontinued Operation, Other Liabilities, Current | 0.7 | |||
Disposal Group, Including Discontinued Operation, Liabilities, Current | 90.2 | |||
Disposal Group, Including Discontinued Operation, Liabilities, Noncurrent | 1.3 | |||
Disposal Group, Including Discontinued Operation, Liabilities | 91.5 | |||
Disposal Group, Including Discontinued Operation, Assets | 119.6 | |||
Disposal Group, Including Discontinued Operation, Inventory | 9.7 | |||
Disposal Group, Including Discontinued Operation, Prepaid and Other Assets | 5.4 | |||
Disposal Group, Including Discontinued Operation, Assets, Current | 32.9 | |||
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment, Noncurrent | 80.8 | |||
Disposal Group, Including Discontinued Operation, Other Assets, Noncurrent | 1.6 | |||
Disposal Group, Including Discontinued Operation, Other Assets, Noncurrent | 4.3 | |||
Disposal Group Total Liability and Partners Capital | $ 119.6 |