Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 30, 2020 | |
Document and Entity Information [Abstract] | ||
Document type | 10-Q | |
Document period end date | Jun. 30, 2020 | |
Document fiscal period focus | Q2 | |
Document fiscal year focus | 2020 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity registrant name | Green Plains PARTNERS LP | |
Entity Incorporation, State or Country Code | DE | |
Entity File Number | 001-37469 | |
Entity Address, Address Line One | 1811 Aksarben Drive | |
Entity Address, City or Town | Omaha | |
Entity Address, State or Province | NE | |
Entity Address, Postal Zip Code | 68106 | |
City Area Code | 402 | |
Local Phone Number | 884-8700 | |
Title of 12(b) Security | Common Units, Representing Limited Partner Interests | |
Trading symbol | GPP | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Tax Identification Number | 47-3822258 | |
Entity filer category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity common stock, shares outstanding | 23,208,171 | |
Entity central index key | 0001635650 | |
Current fiscal year end date | --12-31 | |
Amendment flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 3,037 | $ 261 |
Accounts receivable | 598 | 985 |
Accounts receivable from affiliates | 16,262 | 15,666 |
Prepaid expenses and other | 1,286 | 517 |
Total current assets | 21,183 | 17,429 |
Property and equipment, net of accumulated depreciation and amortization of $33,903 and $31,976, respectively | 35,953 | 37,355 |
Operating lease right-of-use assets | 33,897 | 35,456 |
Goodwill | 10,598 | 10,598 |
Investment in equity method investee | 3,662 | 4,329 |
Other assets | 18 | 486 |
Total assets | 105,311 | 105,653 |
Current liabilities | ||
Accounts payable | 5,279 | 5,050 |
Accounts payable to affiliates | 411 | 543 |
Accrued and other liabilities | 3,174 | 4,461 |
Asset retirement obligations | 1,000 | 565 |
Operating lease current liabilities | 11,865 | 13,093 |
Current maturities of long-term debt | 36,334 | 132,100 |
Total current liabilities | 58,063 | 155,812 |
Long-term debt | 90,576 | |
Asset retirement obligations | 2,610 | 2,500 |
Operating lease long-term liabilities | 23,214 | 23,088 |
Total liabilities | 174,463 | 181,400 |
Commitments and contingencies (Note 10) | ||
Partners' deficit | ||
Total partners' deficit | (69,152) | (75,747) |
Total liabilities and partners' deficit | 105,311 | 105,653 |
General Partner [Member] | ||
Partners' deficit | ||
Total partners' deficit | (1,373) | (1,449) |
Common Units - Public [Member] | Limited Partners [Member] | ||
Partners' deficit | ||
Total partners' deficit | 117,342 | 114,006 |
Common Units - Green Plains [Member] | Limited Partners [Member] | ||
Partners' deficit | ||
Total partners' deficit | $ (185,121) | $ (188,304) |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Property and equipment, accumulated depreciation and amortization | $ 33,903 | $ 31,976 |
Common Units - Public [Member] | Limited Partners [Member] | ||
Units issued | 11,574,003 | 11,574,003 |
Units outstanding | 11,574,003 | 11,574,003 |
Common Units - Green Plains [Member] | Limited Partners [Member] | ||
Units issued | 11,586,548 | 11,586,548 |
Units outstanding | 11,586,548 | 11,586,548 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues | ||||
Total revenues | $ 20,381 | $ 20,825 | $ 40,652 | $ 41,912 |
Operating expenses | ||||
Operations and maintenance (excluding depreciation and amortization reflected below) | 6,603 | 6,233 | 12,763 | 13,098 |
General and administrative | 878 | 988 | 1,922 | 2,105 |
Depreciation and amortization | 966 | 771 | 1,927 | 1,756 |
Total operating expenses | 8,447 | 7,992 | 16,612 | 16,959 |
Operating income | 11,934 | 12,833 | 24,040 | 24,953 |
Other income (expense) | ||||
Interest income | 20 | 40 | ||
Interest expense | (1,820) | (2,166) | (3,684) | (4,221) |
Other | (73) | (73) | ||
Total other expense | (1,820) | (2,219) | (3,684) | (4,254) |
Income before income taxes and income from equity method investee | 10,114 | 10,614 | 20,356 | 20,699 |
Income tax expense | (105) | (47) | (136) | (99) |
Income from equity method investee | 175 | 142 | 333 | 357 |
Net income | 10,184 | 10,709 | 20,553 | 20,957 |
Affiliate [Member] | ||||
Revenues | ||||
Total revenues | 18,997 | 19,133 | 37,980 | 37,915 |
Non-affiliate [Member] | ||||
Revenues | ||||
Total revenues | 1,384 | 1,692 | 2,672 | 3,997 |
General Partner [Member] | ||||
Other income (expense) | ||||
Net income | 204 | 213 | 411 | 418 |
Limited Partners [Member] | Common Units [Member] | ||||
Other income (expense) | ||||
Net income | $ 9,980 | $ 10,496 | $ 20,142 | $ 20,539 |
Earnings per limited partner unit (basic and diluted): | ||||
Earnings per limited partner unit (basic and diluted) | $ 0.43 | $ 0.45 | $ 0.87 | $ 0.89 |
Weighted average limited partner units outstanding (basic and diluted): | ||||
Weighted average limited partner units outstanding (basic and diluted) | 23,138 | 23,120 | 23,138 | 23,119 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities | ||
Net income | $ 20,553 | $ 20,957 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,927 | 1,756 |
Accretion | 127 | 2 |
Amortization of debt issuance costs | 562 | 406 |
Loss on the disposal of assets | 73 | |
Unit-based compensation | 158 | 158 |
Income from equity method investee | (333) | (357) |
Distributions from equity method investment | 1,000 | |
Other | 75 | (17) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 387 | 400 |
Accounts receivable from affiliates | (596) | (6,121) |
Prepaid expenses and other assets | (769) | (179) |
Accounts payable and accrued liabilities | (1,182) | 7,314 |
Accounts payable to affiliates | (132) | (246) |
Operating lease liabilities and right-of-use assets | 457 | (213) |
Other | 10 | 23 |
Net cash provided by operating activities | 22,244 | 23,956 |
Cash flows from investing activities | ||
Purchases of property and equipment, net | (54) | 82 |
Net cash provided by (used in) investing activities | (54) | 82 |
Cash flows from financing activities | ||
Payments of distributions | (14,116) | (22,538) |
Proceeds from credit facility | 39,800 | 41,700 |
Payments on credit facility | (41,900) | (43,500) |
Payments of loan fees | (3,198) | |
Net cash used in financing activities | (19,414) | (24,338) |
Net change in cash and cash equivalents | 2,776 | (300) |
Cash and cash equivalents, beginning of period | 261 | 569 |
Cash and cash equivalents, end of period | 3,037 | 269 |
Supplemental disclosures of cash flow | ||
Cash paid for income taxes | 91 | 193 |
Cash paid for interest | $ 2,429 | 3,762 |
Capital expenditures in accounts payable | 20 | |
Property and equipment sale in accounts receivable | $ 30 |
Basis of Presentation and Descr
Basis of Presentation and Description of Business | 6 Months Ended |
Jun. 30, 2020 | |
Basis of Presentation and Description of Business [Abstract] | |
Basis of Presentation and Description of Business | 1. BASIS OF PRESENTATION, DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization References to “the partnership” in the consolidated financial statements and notes to the consolidated financial statements refer to Green Plains Partners LP and its subsidiaries. Green Plains Holdings LLC, a wholly owned subsidiary of Green Plains Inc., serves as the general partner of the partnership. References to (i) “the general partner” and “Green Plains Holdings” refer to Green Plains Holdings LLC; (ii) “the parent,” “the sponsor” and “Green Plains” refer to Green Plains Inc.; and (iii) “Green Plains Trade” refers to Green Plains Trade Group LLC, a wholly owned subsidiary of Green Plains. Consolidated Financial Statements The consolidated financial statements include the accounts of the partnership and its controlled subsidiaries. All significant intercompany balances and transactions are eliminated on a consolidated basis for reporting purposes. Results for the interim periods presented are not necessarily indicative of the expected results for the entire year. The accompanying unaudited consolidated financial statements are prepared in accordance with GAAP for interim financial information and instructions to Form 10-Q and Article 10 of Regulation S-X. Because they do not include all of the information and footnotes required by GAAP, the consolidated financial statements should be read in conjunction with the partnership’s 2019 annual report on Form 10-K for the year ended December 31, 2019, as filed with the SEC on February 20, 2020. The partnership accounts for its interest in joint ventures using the equity method of accounting, with its investment recorded at the acquisition cost plus the partnership’s share of equity in undistributed earnings and reduced by the partnership’s share of equity in undistributed losses and distributions received. Use of Estimates in the Preparation of Consolidated Financial Statements Preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and revenues and expenses during the reporting period. The partnership bases its estimates on historical experience and assumptions it believes are proper and reasonable under the circumstances. The partnership regularly evaluates the appropriateness of these estimates and assumptions. Actual results could differ from those estimates. Key accounting policies, including, but not limited to, those related to revenue recognition, depreciation of property and equipment, asset retirement obligations, operating leases, and impairment of long-lived assets and goodwill, are impacted significantly by judgments, assumptions and estimates used to prepare the consolidated financial statements. Description of Business The partnership provides fuel storage and transportation services by owning, operating, developing and acquiring ethanol and fuel storage terminals, transportation assets and other related assets and businesses. The partnership is its parent’s primary downstream logistics provider to support the parent’s approximately 1.1 bgy ethanol marketing and distribution business since the partnership’s assets are the principal method of storing and delivering the ethanol its parent produces. The ethanol produced by the parent is predominantly fuel grade, made principally from starch extracted from corn, and is primarily used for blending with gasoline. Ethanol currently comprises approximately 10 % of the U.S. gasoline market and is an economical source of octane and oxygenates for blending into the fuel supply. The partnership does not take ownership of, or receive any payments based on the value of the ethanol, other fuels or products it handles. As a result, the partnership does not have any direct exposure to fluctuations in commodity prices. Revenue Recognition The partnership recognizes revenue when obligations under the terms of a contract with a customer are satisfied. Generally, this occurs with the completion of services or the transfer of control of products to the customer or another specified third party. Operating lease revenue related to minimum volume commitments is recognized on a straight-line basis over the term of the lease. Under the terms of the storage and throughput agreement with Green Plains Trade, to the extent shortfalls associated with minimum volume commitments in the previous four quarters continue to exist, volumes in excess of the minimum volume commitment are applied to those shortfalls. Remaining excess volumes generating operating lease revenue are recognized as incurred. The partnership generates a substantial portion of its revenues under fee-based commercial agreements with Green Plains Trade. Please refer to Note 2 - Revenue to the consolidated financial statements for further details. Operations and Maintenance Expenses The partnership’s operations and maintenance expenses consist primarily of lease expenses related to the transportation assets, labor expenses, outside contractor expenses, insurance premiums, repairs and maintenance expenses, and utility costs. These expenses also include fees for certain management, maintenance and operational services to support the storage and terminal facilities, trucks, and leased railcar fleet allocated by Green Plains under the operational services and secondment agreement. Concentrations of Credit Risk In the normal course of business, the partnership is exposed to credit risk resulting from the possibility a loss may occur due to failure of another party to perform according to the terms of their contract. The partnership provides fuel storage and transportation services for various parties with a significant portion of its revenues earned from Green Plains Trade. The partnership continually monitors its credit risk exposure and concentrations. Please refer to Note 2 – Revenue and Note 11 – Related Party Transactions to the consolidated financial statements for additional information . Segment Reporting The partnership accounts for segment reporting in accordance with ASC 280, Segment Reporting , which establishes standards for entities reporting information about the operating segments and geographic areas in which they operate. Management evaluated how its chief operating decision maker has organized the partnership for purposes of making operating decisions and assessing performance, and concluded it has one reportable segment. Asset Retirement Obligations The partnership records an ARO for the fair value of the estimated costs to retire a tangible long-lived asset in the period incurred if it can be reasonably estimated, which is subsequently adjusted for accretion expense. Corresponding asset retirement costs are capitalized as a long-lived asset and depreciated on a straight-line basis over the asset’s remaining useful life. The expected present value technique used to calculate the fair value of the AROs includes assumptions about costs, settlement dates, interest accretion, and inflation. Changes in assumptions, such as the amount or timing of estimated cash flows, could increase or decrease the AROs. The partnership’s AROs are based on legal obligations to perform remedial activity related to land, machinery and equipment when certain operating leases expire. Please refer to Note 5 – Asset Retirement Obligations to the consolidated financial statements for additional information. Recent Accounting Pronouncements In March 2020, the FASB issued amended guidance in ASC 848, Reference Rate Reform Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions to U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burden related to the expected market transition from LIBOR and other interbank offered rates to alternative reference rates. The expedients and exceptions provided by the amended guidance do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The guidance is effective upon issuance and to be applied prospectively from any date beginning March 12, 2020 through December 31, 2022. The amended guidance is not expected to have a material impact on the partnership’s consolidated financial statements. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2020 | |
Revenue [Abstract] | |
Revenue | 2. REVENUE Revenue Recognition The partnership recognizes revenue when obligations under the terms of a contract with a customer are satisfied. Generally, this occurs with the completion of services or the transfer of control of products to the customer or another specified third party. Revenue is measured as the amount of consideration expected to be received in exchange for providing services. Revenue by Source The following table disaggregates our revenue by major source for the three and six months ended June 30, 2020 and 2019 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Revenues Service revenues Terminal services $ 2,015 $ 2,329 $ 4,100 $ 4,895 Trucking and other 1,090 1,122 2,258 2,017 Total service revenues 3,105 3,451 6,358 6,912 Leasing revenues (1) Storage and throughput services 11,785 11,785 23,570 23,570 Railcar transportation services 5,374 5,505 10,498 11,124 Terminal services 117 84 226 306 Total leasing revenues 17,276 17,374 34,294 35,000 Total revenues $ 20,381 $ 20,825 $ 40,652 $ 41,912 (1) Leasing revenues do not represent revenues recognized from contracts with customers under ASC 606, Revenue from Contracts with Customers , and are accounted for under ASC 842, Leases . Terminal Services Revenue The partnership provides terminal services and logistics solutions to Green Plains Trade, and other customers, through its fuel terminal facilities under various terminal service agreements, some of which have minimum volume commitments. Revenue generated by these terminals is disaggregated between service revenue and leasing revenue. If Green Plains, or other customers, fail to meet their minimum volume commitments during the applicable term, a deficiency payment equal to the deficient volume multiplied by the applicable fee will be charged. Deficiency payments related to the partnership’s terminal services revenue may not be utilized as credits toward future volumes. At terminals where customers have shared use of terminal and tank storage assets, revenue is generated from contracts with customers and accounted for as service revenue. This service revenue is recognized at the point in time when product is withdrawn from tank storage. At terminals where a customer is predominantly provided exclusive use of the terminal or tank storage assets, the partnership is considered a lessor as part of an operating lease agreement. Revenue is recognized over the term of the lease based on the minimum volume commitment or total actual throughput if in excess of the minimum volume commitment. Trucking and Other Revenue The partnership transports ethanol, natural gasoline, other refined fuels and feedstocks by truck from identified receipt points to various delivery points. Trucking revenue is recognized over time based on the percentage of total miles traveled, which is on average less than 100 miles. Railcar Transportation Services Revenue Under the rail transportation services agreement, Green Plains Trade is obligated to use the partnership to transport ethanol and other fuels from receipt points identified by Green Plains Trade to nominated delivery points. Green Plains Trade is required to pay the partnership fees for the minimum railcar volumetric capacity provided, regardless of utilization of that capacity. However, Green Plains Trade is not charged for railcar volumetric capacity that is not available for use due to inspections, upgrades or routine repairs and maintenance. Revenue associated with the rail transportation services fee is considered leasing revenue and is recognized over the term of the lease based on the actual average daily railcar volumetric capacity provided. The partnership may also charge Green Plains Trade a related services fee for logistical operations management of railcar volumetric capacity utilized by Green Plains Trade which is not provided by the partnership. Revenue associated with the related services fee is also considered leasing revenue and recognized over the term of the lease based on the average volumetric capacity for which services are provided. Storage and Throughput Revenue The partnership generates leasing revenue from its storage and throughput agreement with Green Plains Trade based on contractual rates charged for the handling, storage and throughput of ethanol. Under this agreement, Green Plains Trade is required to pay the partnership a fee for a minimum volume commitment regardless of the actual volume delivered. If Green Plains Trade fails to meet its minimum volume commitment during any quarter, the partnership will charge Green Plains Trade a deficiency payment equal to the deficient volume multiplied by the applicable fee. The deficiency payment may be applied as a credit toward volumes delivered by Green Plains Trade in excess of the minimum volume commitment during the following four quarters, after which time any unused credits will expire. Revenue is recognized over the term of the lease based on the minimum volume commitment or total actual throughput if in excess of the minimum volume commitment and no deficiency related credits are available for use. Payment Terms The partnership has standard payment terms, which vary depending on the nature of the services provided, with the majority of terms falling within 10 to 30 days after transfer of control or completion of services. Contracts generally do not include a significant financing component in instances where the timing of revenue recognition differs from the timing of invoicing. Major Customers Revenue from Green Plains Trade Group was $ 19.0 million and $ 38.0 million for the three and six months ended June 30, 2020, respectively, and $ 19.1 million and $ 37.9 million for the three and six months ended June 30, 2019, respectively, which exceeds 10 % of the partnership's total revenue. Contract Liabilities The partnership records unearned revenue when consideration is received, or such consideration is unconditionally due, from a customer prior to transferring goods or services to the customer under the terms of service and lease agreements. Unearned revenue from service agreements, which represents a contract liability, is recorded for fees that have been charged to the customer prior to the completion of performance obligations, and is generally recognized in the subsequent quarter. The following table reflects the changes in our unearned revenue from service agreements, which is recorded in accrued and other liabilities on the consolidated balance sheets, for the three and six months ended June 30, 2020 (in thousands): Amount Balance at January 1, 2020 $ 230 Revenue recognized included in beginning balance ( 230 ) Net additions 225 Balance at March 31, 2020 225 Revenue recognized included in beginning balance ( 225 ) Net additions 251 Balance at June 30, 2020 $ 251 The partnership expects to recognize all of the unearned revenue associated with service agreements from contracts with customers as of June 30, 2020, in the subsequent quarter when the product is withdrawn from tank storage. |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill [Abstract] | |
Goodwill | 3 . GOODWILL The partnership currently has one reporting unit, BlendStar, to which goodwill is assigned. During the three months ended June 30, 2020, a decline in the partnership’s stock price resulted in a decrease in the partnership’s market capitalization. As such, the partnership determined a triggering event had occurred that required an interim impairment assessment for its Blendstar reporting unit as of June 30, 2020. Significant assumptions inherent in the valuation methodologies for goodwill impairment testing were employed and include, but are not limited to, market capitalization, prospective financial information, growth rates, discount rates, inflationary factors, and cost of capital. Based on the partnership’s quantitative evaluation, it was determined that the fair value of the Blendstar reporting unit exceeded its carrying value, and the partnership concluded that the goodwill assigned to the Blendstar reporting unit was not impaired, but could be at risk of future impairment. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2020 | |
Debt [Abstract] | |
Debt | 4. DEBT Credit Facility Green Plains Operating Company has a $ 135.0 million credit facility to fund working capital, capital expenditures and other general partnership purposes. The credit facility was amended on June 4, 2020, decreasing the total amount available from $ 200.0 million to $ 135.0 million. The amended credit facility includes a $ 130.0 million term loan and a $ 5.0 million revolving credit facility, and matures on December 31, 2021 . The term loan requires a principal payment of $ 7.5 million on July 15, 2020 and $ 2.5 million in monthly principal payments beginning August 15, 2020, with a step up to monthly payments of $ 3.2 million beginning May 15, 2021. In addition, if at any time subsequent to July 15, 2020, the partnership’s cash balance exceeds $ 2.5 million for more than five consecutive business days, prepayments of outstanding principal are required in an amount equal to the excess cash. The partnership is also required to prepay outstanding principal on the credit facility with 100 % of net cash proceeds from any asset disposition or recovery event. Any prepayments on the term loan are applied to the remaining principal balance in inverse order of maturity, including the final payment. The term loan balance, and any advances on the revolver, are subject to a floating interest rate based on a 1.00 % Libor floor plus 4.50 % to 5.25 % dependent upon the preceding fiscal quarter’s consolidated leverage ratio. The unused portion of the revolver is also subject to a commitment fee of 0.50 %. As of June 30, 2020, the term loan had a balance of $ 130 million and an interest rate of 6.25 % and the revolver was unused. The credit facility also allows for swing line loans subject to the revolver availability. Swing line loans are subject to a floating interest rate based on the Prime Rate plus 3.50 % to 4.25 % dependent upon the preceding fiscal quarter’s consolidated leverage ratio. As of June 30, 2020, there were no outstanding swing line loans. The partnership’s obligations under the credit facility are secured by a first priority lien on (i) the equity interests of the partnership’s present and future subsidiaries, (ii) all of the partnership’s present and future personal property, such as investment property, general intangibles and contract rights, including rights under any agreements with Green Plains Trade, (iii) all proceeds and products of the equity interests of the partnership’s present and future subsidiaries and its personal property and (iv) substantially all of the partnership’s real property and material leases of real property. The terms impose affirmative and negative covenants, including restrictions on the partnership’s ability to incur additional debt, acquire and sell assets, create liens, invest capital, pay distributions and materially amend the partnership’s commercial agreements with Green Plains Trade. The credit facility also requires the partnership to maintain a maximum consolidated leverage ratio, as of the end of any fiscal quarter, of no more than 3.00 x that decreases 0.25 x each quarter to 1.50 x by December 31, 2021, and a minimum consolidated debt service coverage ratio of 1.10 x , each of which is calculated on a pro forma basis with respect to acquisitions and divestitures occurring during the applicable period. The consolidated leverage ratio is calculated by dividing total funded indebtedness by the sum of the four preceding fiscal quarters’ consolidated EBITDA. The consolidated debt service coverage ratio is calculated by taking the sum of the four preceding fiscal quarters’ consolidated EBITDA minus income taxes and consolidated capital expenditures for such period divided by the sum of the four preceding fiscal quarters’ consolidated interest charges plus consolidated scheduled funded debt payments for such period. Under the amended terms of the credit facility, the partnership may make quarterly distribution payments in an aggregate amount not to exceed $ 0.12 per outstanding unit, so long as (i) no default has occurred and is continuing, or would result from payment of the distribution, and (ii) the partnership and its subsidiaries are in compliance with its financial covenants and remain in compliance after payment of the distribution. The partnership had $ 130.0 million and $ 132.1 million of borrowings outstanding under the credit facility as of June 30, 2020, and December 31, 2019, respectively. In addition, the partnership has $ 3.1 million of debt issuance costs recorded as a direct reduction of the carrying value of the partnership’s long-term debt as of June 30, 2020. The partnership believes the carrying amount of its debt approximated fair value at both June 30, 2020 and December 31, 2019. Covenant Compliance The partnership, including all of its subsidiaries, was in compliance with its debt covenants as of June 30, 2020. |
Asset Retirement Obligations
Asset Retirement Obligations | 6 Months Ended |
Jun. 30, 2020 | |
Asset Retirement Obligations [Abstract] | |
Asset Retirement Obligations | 5. ASSET RETIREMENT OBLIGATIONS Under various lease agreements, the partnership has AROs when certain machinery and equipment are disposed or operating leases expire. During the six months ended June 30, 2020, the partnership reassessed the estimated cost of AROs related to its railcar operating leases. The reassessment resulted in a change in estimated costs that has been reflected as an increase of $ 0.3 million to the ARO liabilities and corresponding assets on the consolidated balance sheet as of June 30, 2020. The following table summarizes the change in the liability for the AROs during the three and six months ended June 30, 2020 (in thousands): Amount Balance at January 1, 2020 $ 3,065 Additional asset retirement obligations incurred 67 Liabilities settled ( 44 ) Accretion expense 62 Change in estimate 323 Balance at March 31, 2020 3,473 Additional asset retirement obligations incurred 81 Liabilities settled ( 9 ) Accretion expense 65 Balance at June 30, 2020 $ 3,610 |
Unit-Based Compensation
Unit-Based Compensation | 6 Months Ended |
Jun. 30, 2020 | |
Unit-Based Compensation [Abstract] | |
Unit-Based Compensation | 6. UNIT-BASED COMPENSATION The partnership has a long-term incentive plan (LTIP) intended to promote the interests of the partnership, its general partner and affiliates by providing unit-based incentive compensation awards to employees, consultants and directors to encourage superior performance. The LTIP reserves 2,500,000 common limited partner units for issuance in the form of options, restricted units, phantom units, distribution equivalent rights, substitute awards, unit appreciation rights, unit awards, profit interest units or other unit-based awards. The partnership measures unit-based compensation at fair value on the grant date, with no adjustments for estimated forfeitures. The partnership records noncash compensation expense related to the awards over the requisite service period on a straight-line basis. The non-vested unit-based activity for the six months ended June 30, 2020, is as follows: Non-Vested Units Weighted-Average Grant-Date Fair Value Weighted-Average Remaining Vesting Term (in years) Non-vested at December 31, 2019 22,856 $ 14.00 Vested ( 22,856 ) 14.00 Non-vested at June 30, 2020 - $ - 0.0 Compensation costs related to the unit-based awards of $ 79 thousand and $ 158 thousand were recognized during both the three and six months ended June 30, 2020 and 2019, respectively. As of June 30, 2020, there were no unrecognized compensation costs from unit-based compensation awards. |
Partners' Deficit
Partners' Deficit | 6 Months Ended |
Jun. 30, 2020 | |
Partners' Deficit [Abstract] | |
Partners' Deficit | 7. PARTNERS’ DEFICIT Changes in partners’ deficit are as follows (in thousands): Limited Partners Common Units- Public Common Units- Green Plains General Partner Total Balance, December 31, 2019 $ 114,006 $ ( 188,304 ) $ ( 1,449 ) $ ( 75,747 ) Quarterly cash distributions to unitholders ($ 0.475 per unit) ( 5,498 ) ( 5,504 ) ( 278 ) ( 11,280 ) Net income 5,078 5,084 207 10,369 Unit-based compensation, including general partner net contributions 79 - - 79 Balance, March 31, 2020 113,665 ( 188,724 ) ( 1,520 ) ( 76,579 ) Quarterly cash distributions to unitholders ($ 0.12 per unit) ( 1,389 ) ( 1,390 ) ( 57 ) ( 2,836 ) Net income 4,987 4,993 204 10,184 Unit-based compensation, including general partner net contributions 79 - - 79 Balance, June 30, 2020 $ 117,342 $ ( 185,121 ) $ ( 1,373 ) $ ( 69,152 ) Limited Partners Common Units- Public Common Units- Green Plains General Partner Total Balance, December 31, 2018 $ 115,352 $ ( 186,635 ) $ ( 1,171 ) $ ( 72,454 ) Quarterly cash distributions to unitholders ($ 0.475 per unit) ( 5,487 ) ( 5,504 ) ( 278 ) ( 11,269 ) Net income 5,014 5,029 205 10,248 Unit-based compensation, including general partner net contributions 79 - - 79 Balance, March 31, 2019 114,958 ( 187,110 ) ( 1,244 ) ( 73,396 ) Quarterly cash distributions to unitholders ($ 0.475 per unit) ( 5,487 ) ( 5,504 ) ( 278 ) ( 11,269 ) Net income 5,240 5,256 213 10,709 Unit-based compensation, including general partner net contributions 79 - - 79 Balance, June 30, 2019 $ 114,790 $ ( 187,358 ) $ ( 1,309 ) $ ( 73,877 ) There was no change in the number of common limited partner units outstanding during the six months ended June 30, 2020. Issuance of Additional Securities The partnership agreement authorizes the partnership to issue unlimited additional partnership interests on the terms and conditions determined by the general partner without unitholder approval. Cash Distribution Policy Quarterly distributions are made from available cash within 45 days after the end of each calendar quarter, assuming the partnership has available cash, up to an aggregate amount not to exceed $ 0.12 per outstanding unit, subject to the terms of the credit agreement which matures December 31, 2021. Available cash generally means all cash and cash equivalents on hand at the end of that quarter less cash reserves established by the general partner, including those for future capital expenditures, future acquisitions and anticipated future debt service requirements, plus all or any portion of the cash on hand resulting from working capital borrowings made subsequent to the end of that quarter. The general partner also holds incentive distribution rights that entitles it to receive increasing percentages, up to 48 %, of available cash distributed from operating surplus, as defined in the partnership agreement, in excess of $ 0.46 per unit per quarter. The maximum distribution of 48 % does not include any distributions the general partner or its affiliates may receive on its general partner interest or common units. On February 7, 2020 , the partnership distributed $ 11.3 million to unitholders of record as of January 31, 2020 , related to the quarterly cash distribution of $ 0.475 per unit that was declared on January 16, 2020 , for the quarter ended December 31, 2019. On May 8, 2020 , the partnership distributed $ 2.8 million to unitholders of record as of May 1, 2020 , related to the quarterly cash distribution of $ 0.12 per unit that was declared on April 16, 2020 , for the quarter ended March 31, 2020. On July 16, 2020 , the board of directors of the general partner declared a quarterly cash distribution of $ 0.12 per unit, or approximately $ 2.8 million, for the quarter ended June 30, 2020. The distribution is payable on August 7, 2020 , to unitholders of record at the close of business on July 31, 2020 . The total cash distributions declared for the three and six months ended June 30, 2020 and 2019, are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 General partner distributions $ 57 $ 226 $ 114 $ 451 Incentive distributions - 53 - 106 Total distributions to general partner 57 279 114 557 Limited partner common units - public 1,388 5,497 2,777 10,984 Limited partner common units - Green Plains 1,391 5,504 2,781 11,008 Total distributions to limited partners 2,779 11,001 5,558 21,992 Total distributions declared $ 2,836 $ 11,280 $ 5,672 $ 22,549 |
Earnings Per Unit
Earnings Per Unit | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Unit [Abstract] | |
Earnings Per Unit | 8. EARNINGS PER UNIT The partnership computes earnings per unit using the two-class method. Earnings per unit applicable to common units is calculated by dividing the respective limited partners’ interest in net income by the weighted average number of common units outstanding during the period, adjusted for the dilutive effect of any outstanding dilutive securities. Diluted earnings per limited partner unit was the same as basic earnings per limited partner unit as there were no potentially dilutive common units outstanding as of June 30, 2020. The following tables show the calculation of earnings per limited partner unit – basic and diluted (in thousands, except for per unit data): Three Months Ended June 30, 2020 Limited Partner Common Units General Partner Total Net income: Distributions declared $ 2,779 $ 57 $ 2,836 Earnings in excess of distributions 7,201 147 7,348 Total net income $ 9,980 $ 204 $ 10,184 Weighted-average units outstanding - basic and diluted 23,138 Earnings per limited partner unit - basic and diluted $ 0.43 Six Months Ended June 30, 2020 Limited Partner Common Units General Partner Total Net income: Distributions declared $ 5,558 $ 114 $ 5,672 Earnings in excess of distributions 14,584 297 14,881 Total net income $ 20,142 $ 411 $ 20,553 Weighted-average units outstanding - basic and diluted 23,138 Earnings per limited partner unit - basic and diluted $ 0.87 Three Months Ended June 30, 2019 Limited Partner Common Units General Partner Total Net income: Distributions declared $ 11,001 $ 279 $ 11,280 Earnings less than distributions ( 505 ) ( 66 ) ( 571 ) Total net income $ 10,496 $ 213 $ 10,709 Weighted-average units outstanding - basic and diluted 23,120 Earnings per limited partner unit - basic and diluted $ 0.45 Six Months Ended June 30, 2019 Limited Partner Common Units General Partner Total Net income: Distributions declared $ 21,992 $ 557 $ 22,549 Earnings less than distributions ( 1,453 ) ( 139 ) ( 1,592 ) Total net income $ 20,539 $ 418 $ 20,957 Weighted-average units outstanding - basic and diluted 23,119 Earnings per limited partner unit - basic and diluted $ 0.89 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Taxes [Abstract] | |
Income Taxes | 9. INCOME TAXES The partnership is a limited partnership, which is not subject to federal income taxes. The general partner and the unitholders are responsible for paying federal and state income taxes on their share of the partnership’s taxable income. However, the partnership owns a subsidiary that is taxed as a corporation for federal and state income tax purposes. In addition, the partnership is subject to state income taxes in certain states. As a result, the financial statements reflect a provision or benefit for such income taxes. The partnership recognizes uncertainties in income taxes based upon the technical merits of the position, and measures the maximum benefit and degree of likelihood to determine the tax liability in the financial statements. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 10. COMMITMENTS AND CONTINGENCIES Operating Lease Expense The partnership leases certain facilities, parcels of land, and railcars with remaining terms ranging from less than one year to approximately 11.3 years, including renewal options reasonably certain to be exercised for the land and facility leases. Railcar agreement renewals are not considered reasonably certain to be exercised as they are typically subject to significant market dynamics which impact the underlying terms of the agreements. The partnership may sublease certain of its railcars to third parties on a short-term basis. These subleases are classified as operating leases, with the associated sublease revenue recognized on a straight-line basis over the lease term. The components of lease expense for the three and six months ended June 30, 2020 and 2019, are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Lease expense Operating lease expense $ 3,981 $ 4,076 $ 7,693 $ 8,285 Variable lease expense (benefit) (1) 125 ( 271 ) ( 25 ) ( 149 ) Total lease expense $ 4,106 $ 3,805 $ 7,668 $ 8,136 (1) Represents amounts incurred in excess of the minimum payments required for the handling and unloading of railcars for a certain lease, offset by railcar lease abatements provided by the lessor when railcars are out of service during periods of maintenance or upgrade. Supplemental cash flow information related to operating leases for the three and six months ended June 30, 2020 and 2019, are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,748 $ 4,395 $ 7,361 $ 8,486 Right-of-use assets obtained in exchange for lease obligations: Operating leases - 6,207 5,194 6,207 Supplemental balance sheet information related to operating leases is as follows: June 30, 2020 December 31, 2019 Weighted average remaining lease term 4.3 years 4.2 years Weighted average discount rate 5.19 % 5.19 % Aggregate minimum lease payments under the operating lease agreements for the remainder of 2020 and in future years are as follows (in thousands): Year Ending December 31, Amount 2020 $ 7,730 2021 9,997 2022 8,456 2023 5,278 2024 3,453 Thereafter 4,181 Total $ 39,095 Less: Present value discount ( 4,016 ) Operating lease liabilities $ 35,079 The partnership has additional railcar operating leases that will commence in the second half of 2020 and the first half of 2021 to replace expiring leases, with estimated future minimum lease commitments of approximately $ 26.6 million and lease terms of five years . The amounts are not included in the tables above. Lease Revenue The components of lease revenue are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Lease revenue Operating lease revenue $ 17,177 $ 17,436 $ 34,131 $ 34,770 Variable lease revenue (1) 40 ( 266 ) 27 ( 198 ) Sublease revenue 59 204 136 428 Total lease revenue $ 17,276 $ 17,374 $ 34,294 $ 35,000 (1) Represents amounts delivered by Green Plains Trade and other customers in excess of various minimum volume commitments, as well as the difference between the contracted railcar volumetric capacity and the actual amount provided to Green Plains Trade during the period. In accordance with the amended storage and throughput agreement, Green Plains Trade is obligated to deliver a minimum volume of 235.7 mmg per calendar quarter to the partnership’s storage facilities and pay $ 0.05 per gallon on all volume it throughputs associated with the agreement through June 30, 2020, and $ 0.05312 per gallon beginning July 1, 2020. The remaining lease term for this agreement is 8.0 years, with automatic one year renewal periods, for which either party has the right to terminate the contract. Due to the unilateral right to termination during the renewal period, the lease contract would no longer contain enforceable rights or obligations. Therefore, the lease term does not include the successive one year renewal periods. Anticipated minimum operating lease revenue under this agreement assuming a consistent rate of $ 0.05312 per gallon for the remainder of 2020 and in future years is as follows (in thousands): Year Ending December 31, Amount 2020 $ 25,041 2021 50,082 2022 50,082 2023 50,082 2024 50,082 Thereafter 175,283 Total $ 400,652 In accordance with the amended rail transportation services agreement with Green Plains Trade, Green Plains Trade is required to pay the rail transportation services fee for railcar volumetric capacity provided by the partnership. The remaining lease term for this agreement is 5.0 years, with automatic one year renewal periods, for which either party has the right to terminate the contract. Due to the unilateral right to termination during the renewal period, the lease contract would no longer contain enforceable rights or obligations. Therefore, the lease term does not include the successive one year renewal periods. Under the terms of the agreement, Green Plains Trade is not required to pay for volumetric capacity that is not available due to inspections, upgrades, or routine repairs and maintenance. As a result, the actual volumetric capacity billed may be reduced based on the amount of volumetric capacity available for use during any applicable period. Anticipated minimum operating lease revenue under this agreement for the remainder of 2020 and in future years is as follows (in thousands): Year Ending December 31, Amount 2020 $ 10,849 2021 14,757 2022 12,549 2023 6,807 2024 4,250 Thereafter 1,081 Total $ 50,293 The partnership provides terminal services and logistics solutions to certain customers under various terminal service agreements, some of which have minimum volume commitments. At terminals where a customer is predominantly provided exclusive use of the terminal or tank storage assets, the partnership is considered a lessor as part of an operating lease agreement. Revenue is recognized over the term of the lease based on the minimum volume commitment, or total actual throughput if in excess of the minimum volume commitment. The partnership currently has one such agreement, with a remaining lease term of 5 .2 years , which includes renewal options reasonably certain to be exercised. Minimum operating lease revenue for this terminal for the remainder of 2020 and in future years is as follows (in thousands): Year Ending December 31, Amount 2020 $ 37 2021 74 2022 74 2023 74 2024 74 Thereafter 49 Total $ 382 Other Commitments and Contingencies The partnership has agreements for contracted services with certain vendors that require the partnership to pay minimum monthly amounts, which expire on various dates. These agreements do not contain an identified asset and therefore are not considered operating leases. The partnership satisfied the minimum commitments under these agreements during the three and six months ended June 30, 2020 and 2019. Aggregate minimum payments under these agreements for the remainder of 2020 and in future years are as follows (in thousands): Year Ending December 31, Amount 2020 $ 334 2021 142 2022 156 2023 - 2024 - Thereafter - Total $ 632 Legal The partnership may be involved in litigation that arises during the ordinary course of business. Currently, the partnership is not party to any material litigation. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 11. RELATED PARTY TRANSACTIONS The partnership engages in various related party transactions with Green Plains and subsidiaries of Green Plains. Green Plains provides a variety of shared services to the partnership, including general management, accounting and finance, payroll and human resources, information technology, legal, communications and treasury activities. These costs are proportionally allocated by Green Plains to its subsidiaries based on common financial metrics management believes are reasonable. The partnership recorded expenses related to these shared services of $ 0.9 million and $ 1.7 million for the three and six months ended June 30, 2020, respectively, and $ 0.9 million and $ 1.8 million for the three and six months ended June 30, 2019, respectively. In addition, the partnership reimburses Green Plains for wages and benefit costs of employees directly performing services on its behalf. Green Plains may also pay certain direct costs on behalf of the partnership, which are reimbursed by the partnership. The partnership believes the consolidated financial statements reflect all material costs of doing business related to its operations, including expenses incurred by other entities on its behalf. Omnibus Agreement The partnership has entered into an omnibus agreement, as amended, with Green Plains and its affiliates which, among other terms and conditions, addresses the partnership’s obligation to reimburse Green Plains for direct or allocated costs and expenses incurred by Green Plains for general and administrative services; the prohibition of Green Plains and its subsidiaries from owning, operating or investing in any business that owns or operates fuel terminals or fuel transportation assets; the partnership’s right of first offer to acquire assets if Green Plains decides to sell them; a nontransferable, nonexclusive, royalty-free license to use the Green Plains trademark and name; the allocation of taxes among the parent, the partnership and its affiliates and the parent’s preparation and filing of tax returns; and an indemnity by Green Plains for environmental and other liabilities. If Green Plains or its affiliates cease to control the general partner, then either Green Plains or the partnership may terminate the omnibus agreement, provided that (i) the indemnification obligations of the parties survive according to their respective terms; and (ii) Green Plains’ obligation to reimburse the partnership for operational failures survives according to its terms. Operating Services and Secondment Agreement The general partner has entered into an operational services and secondment agreement, as amended, with Green Plains. Under the terms of the agreement, Green Plains seconds employees to the general partner to provide management, maintenance and operational functions for the partnership, including regulatory matters, health, environment, safety and security programs, operational services, emergency response, employee training, finance and administration, human resources, business operations and planning. The seconded personnel are under the direct management and supervision of the general partner who reimburses the parent for the cost of the seconded employees, including wages and benefits. If a seconded employee does not devote 100% of his or her time providing services to the general partner, the general partner reimburses the parent for a prorated portion of the employee’s overall wages and benefits based on the percentage of time the employee spent working for the general partner. Under the operational services and secondment agreement, Green Plains will indemnify the partnership from any claims, losses or liabilities incurred by the partnership, including third-party claims, arising from their performance of the operational services secondment agreement; provided, however, that Green Plains will not be obligated to indemnify the partnership for any claims, losses or liabilities arising out of the partnership’s gross negligence, willful misconduct or bad faith with respect to any services provided under the operational services and secondment agreement. Commercial Agreements The partnership has various fee-based commercial agreements with Green Plains Trade, including: Storage and throughput agreement, expiring on June 30, 2028; Rail transportation services agreement, expiring on June 30, 2025; Trucking transportation agreement, expiring on May 31, 2021; Terminal services agreement for the Birmingham, Alabama unit train terminal, expiring on December 31, 2022; and Various other terminal services agreements for other fuel terminal facilities, each with Green Plains Trade. The storage and throughput, rail transportation services, and trucking transportation agreements have various automatic renewal terms if not cancelled by either party within specified timeframes. Please refer to Item 15 – Exhibits, Financial Statement Schedule in our 2019 annual report for further details. The storage and throughput agreement and terminal services agreements are supported by minimum volume commitments. The rail transportation services agreement is supported by minimum take-or-pay volumetric capacity commitments. Under the storage and throughput agreement, as amended, Green Plains Trade is obligated to deliver a minimum volume of 235.7 mmg of product per calendar quarter to the partnership’s storage facilities and pay $ 0.05 per gallon on all volume it throughputs through June 30, 2020, and $ 0.05312 per gallon beginning July 1, 2020. If Green Plains Trade fails to meet its minimum volume commitment during any quarter, Green Plains Trade will pay the partnership a deficiency payment equal to the deficient volume multiplied by the applicable fee. The deficiency payment may be applied as a credit toward payments due on future volumes delivered by Green Plains Trade in excess of the minimum volume commitment during the following four quarters, after which time this option will expire. For the three months ended June 30, 2020, the partnership charged Green Plains Trade $ 4.3 million related to the minimum volume commitment deficiency for the quarter, resulting in a credit to be applied against excess volumes in future periods. This credit will expire on June 30, 2021 if unused by Green Plains Trade. The deficiency charge was recognized in revenue by the partnership for the three months ended June 30, 2020, and as such, future volumes throughput by Green Plains Trade in excess of the minimum volume commitment, up to the amount of $ 4.3 million, will not be recognized in revenue in future periods prior to expiration. Under the rail transportation services agreement, Green Plains Trade is obligated to use the partnership to transport ethanol and other fuels from receipt points identified by Green Plains Trade to nominated delivery points. During the three and six months ended June 30, 2020, the average daily railcar volumetric capacity provided by the partnership was 80.9 mmg and 79.8 mmg, respectively, and the associated monthly fee was approximately $ 0.0219 and $ 0.0217 per gallon, res pec tively. During the three and six months ended June 30, 2019, the average daily railcar volumetric capacity provided by the partnership was 81.1 mmg and 82.3 mmg, respectively, and the associated monthly fee was approximately $ 0.0218 and $ 0.0217 per gallon, res pec tively. The partnership’s leased railcar fleet consisted of approximately 2,750 and 2,690 railcars as of June 30, 2020 and 2019, respectively. Green Plains Trade is also obligated to use the partnership for logistical operations management and other services related to average daily railcar volumetric capacity provided by Green Plains Trade, which was approximately 0.7 mmg and 1.6 mmg for the three and six months ended June 30, 2020, respectively. Green Plains Trade is obligated to pay a monthly fee of approximately $ 0.0013 per gallon for these services. In addition, Green Plains Trade reimburses the partnership for costs related to: (1) railcar switching and unloading fees; (2) increased costs related to changes in law or governmental regulation related to the specification, operation or maintenance of railcars; (3) demurrage charges, except when the charges are due to the partnership’s gross negligence or willful misconduct; and (4) fees related to rail transportation services under transportation contracts with third-party common carriers. As needed, Green Plains Trade contracts with the partnership for additional railcar volumetric capacity during the normal course of business at comparable margins. Under the trucking transportation agreement, Green Plains Trade pays the partnership to transport ethanol and other fuels by truck from identified receipt points to various delivery points. Green Plains Trade is obligated to pay a monthly trucking transportation services fee equal to the aggregate volume transported in a calendar month by the partnership’s trucks, multiplied by the applicable rate for each truck lane. A truck lane is defined as a specific and routine route of travel between a point of origin and point of destination. Rates for each truck lane are negotiated based on product, location, mileage and other factors. Green Plains Trade reimburses the partnership for costs related to: (1) truck switching and unloading fees; (2) increased costs related to changes in law or governmental regulation related to the specification, operation and maintenance of trucks; and (3) fees related to trucking transportation services under transportation contracts with third-party common carriers. Under the existing Birmingham terminal services agreement, effective through December 31, 2022, Green Plains Trade is obligated to throughput a minimum volume commitment of approximately 8.3 mmg per month and pay associated throughput fees, as well as fees for ancillary services. The partnership recorded revenues from Green Plains Trade under the storage and throughput agreement and rail transportation services agreement of $ 17.1 million and $ 33.9 million for the three and six months ended June 30, 2020 and $ 17.1 million and $ 34.3 million for the three and six months ended June 30, 2019, respectively. The partnership recorded revenues from Green Plains Trade and other Green Plains subsidiaries related to trucking and terminal services of $ 1.9 million and $ 4.1 million for the three and six months ended June 30, 2020 and $ 2.0 million and $ 3.6 million for the three and six months ended June 30, 2019, respectively. Cash Distributions The partnership distributed $ 1.4 million and $ 7.2 million to Green Plains related to the quarterly cash distribution paid for the three and six months ended June 30, 2020, respectively, and $ 5.8 million and $ 11.6 million for the three and six months ended June 30, 2019, respectively. Equity Method Investment The partnership received a distribution from NLR in the amount of $ 1.0 million during the three months ended June 30, 2020. In addition, the partnership had an outstanding receivable of $ 23 thousand due from NLR for various reimbursable expenses as of June 30, 2020 and December 31, 2019. |
Equity Method Investment
Equity Method Investment | 6 Months Ended |
Jun. 30, 2020 | |
Equity Method Investment [Abstract] | |
Equity Method Investment | 12. EQUITY METHOD INVESTMENT NLR Energy Logistics LLC The partnership and Delek Renewables LLC have a 50 / 50 joint venture, NLR Energy Logistics LLC, which operates a unit train terminal in the Little Rock, Arkansas area with capacity to unload 110 -car unit trains and provide approximately 100,000 barrels of storage. As of June 30, 2020, the partnership's investment balance in the joint venture was $ 3.7 million. The partnership does not consolidate any part of the assets or liabilities or operating results of its equity method investee. The partnership’s share of net income or loss in the investee increases or decreases, as applicable, the carrying value of the investment. With respect to NLR, the partnership determined that this entity does not represent a variable interest entity and consolidation is not required. In addition, although the partnership has the ability to exercise significant influence over the joint venture through board representation and voting rights, all significant decisions require the consent of the other investor without regard to economic interest. |
Basis of Presentation and Des_2
Basis of Presentation and Description of Business (Policy) | 6 Months Ended |
Jun. 30, 2020 | |
Basis of Presentation and Description of Business [Abstract] | |
Consolidated Financial Statements | Consolidated Financial Statements The consolidated financial statements include the accounts of the partnership and its controlled subsidiaries. All significant intercompany balances and transactions are eliminated on a consolidated basis for reporting purposes. Results for the interim periods presented are not necessarily indicative of the expected results for the entire year. The accompanying unaudited consolidated financial statements are prepared in accordance with GAAP for interim financial information and instructions to Form 10-Q and Article 10 of Regulation S-X. Because they do not include all of the information and footnotes required by GAAP, the consolidated financial statements should be read in conjunction with the partnership’s 2019 annual report on Form 10-K for the year ended December 31, 2019, as filed with the SEC on February 20, 2020. The partnership accounts for its interest in joint ventures using the equity method of accounting, with its investment recorded at the acquisition cost plus the partnership’s share of equity in undistributed earnings and reduced by the partnership’s share of equity in undistributed losses and distributions received. |
Use of Estimates in the Preparation of Consolidated Financial Statements | Use of Estimates in the Preparation of Consolidated Financial Statements Preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and revenues and expenses during the reporting period. The partnership bases its estimates on historical experience and assumptions it believes are proper and reasonable under the circumstances. The partnership regularly evaluates the appropriateness of these estimates and assumptions. Actual results could differ from those estimates. Key accounting policies, including, but not limited to, those related to revenue recognition, depreciation of property and equipment, asset retirement obligations, operating leases, and impairment of long-lived assets and goodwill, are impacted significantly by judgments, assumptions and estimates used to prepare the consolidated financial statements. |
Description of Business | Description of Business The partnership provides fuel storage and transportation services by owning, operating, developing and acquiring ethanol and fuel storage terminals, transportation assets and other related assets and businesses. The partnership is its parent’s primary downstream logistics provider to support the parent’s approximately 1.1 bgy ethanol marketing and distribution business since the partnership’s assets are the principal method of storing and delivering the ethanol its parent produces. The ethanol produced by the parent is predominantly fuel grade, made principally from starch extracted from corn, and is primarily used for blending with gasoline. Ethanol currently comprises approximately 10 % of the U.S. gasoline market and is an economical source of octane and oxygenates for blending into the fuel supply. The partnership does not take ownership of, or receive any payments based on the value of the ethanol, other fuels or products it handles. As a result, the partnership does not have any direct exposure to fluctuations in commodity prices. |
Revenue Recognition | Revenue Recognition The partnership recognizes revenue when obligations under the terms of a contract with a customer are satisfied. Generally, this occurs with the completion of services or the transfer of control of products to the customer or another specified third party. Operating lease revenue related to minimum volume commitments is recognized on a straight-line basis over the term of the lease. Under the terms of the storage and throughput agreement with Green Plains Trade, to the extent shortfalls associated with minimum volume commitments in the previous four quarters continue to exist, volumes in excess of the minimum volume commitment are applied to those shortfalls. Remaining excess volumes generating operating lease revenue are recognized as incurred. The partnership generates a substantial portion of its revenues under fee-based commercial agreements with Green Plains Trade. Please refer to Note 2 - Revenue to the consolidated financial statements for further details. |
Operations and Maintenance Expenses | Operations and Maintenance Expenses The partnership’s operations and maintenance expenses consist primarily of lease expenses related to the transportation assets, labor expenses, outside contractor expenses, insurance premiums, repairs and maintenance expenses, and utility costs. These expenses also include fees for certain management, maintenance and operational services to support the storage and terminal facilities, trucks, and leased railcar fleet allocated by Green Plains under the operational services and secondment agreement. |
Concentrations of Credit Risk | Concentrations of Credit Risk In the normal course of business, the partnership is exposed to credit risk resulting from the possibility a loss may occur due to failure of another party to perform according to the terms of their contract. The partnership provides fuel storage and transportation services for various parties with a significant portion of its revenues earned from Green Plains Trade. The partnership continually monitors its credit risk exposure and concentrations. Please refer to Note 2 – Revenue and Note 11 – Related Party Transactions to the consolidated financial statements for additional information . |
Segment Reporting | Segment Reporting The partnership accounts for segment reporting in accordance with ASC 280, Segment Reporting , which establishes standards for entities reporting information about the operating segments and geographic areas in which they operate. Management evaluated how its chief operating decision maker has organized the partnership for purposes of making operating decisions and assessing performance, and concluded it has one reportable segment. |
Asset Retirement Obligations | Asset Retirement Obligations The partnership records an ARO for the fair value of the estimated costs to retire a tangible long-lived asset in the period incurred if it can be reasonably estimated, which is subsequently adjusted for accretion expense. Corresponding asset retirement costs are capitalized as a long-lived asset and depreciated on a straight-line basis over the asset’s remaining useful life. The expected present value technique used to calculate the fair value of the AROs includes assumptions about costs, settlement dates, interest accretion, and inflation. Changes in assumptions, such as the amount or timing of estimated cash flows, could increase or decrease the AROs. The partnership’s AROs are based on legal obligations to perform remedial activity related to land, machinery and equipment when certain operating leases expire. Please refer to Note 5 – Asset Retirement Obligations to the consolidated financial statements for additional information. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2020, the FASB issued amended guidance in ASC 848, Reference Rate Reform Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions to U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burden related to the expected market transition from LIBOR and other interbank offered rates to alternative reference rates. The expedients and exceptions provided by the amended guidance do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The guidance is effective upon issuance and to be applied prospectively from any date beginning March 12, 2020 through December 31, 2022. The amended guidance is not expected to have a material impact on the partnership’s consolidated financial statements. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue [Abstract] | |
Disaggregation of Revenue by Major Source | Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Revenues Service revenues Terminal services $ 2,015 $ 2,329 $ 4,100 $ 4,895 Trucking and other 1,090 1,122 2,258 2,017 Total service revenues 3,105 3,451 6,358 6,912 Leasing revenues (1) Storage and throughput services 11,785 11,785 23,570 23,570 Railcar transportation services 5,374 5,505 10,498 11,124 Terminal services 117 84 226 306 Total leasing revenues 17,276 17,374 34,294 35,000 Total revenues $ 20,381 $ 20,825 $ 40,652 $ 41,912 (1) Leasing revenues do not represent revenues recognized from contracts with customers under ASC 606, Revenue from Contracts with Customers , and are accounted for under ASC 842, Leases . |
Changes in Unearned Revenue from Service Agreements | Amount Balance at January 1, 2020 $ 230 Revenue recognized included in beginning balance ( 230 ) Net additions 225 Balance at March 31, 2020 225 Revenue recognized included in beginning balance ( 225 ) Net additions 251 Balance at June 30, 2020 $ 251 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Asset Retirement Obligations [Abstract] | |
Schedule of Change in The Liability for the Asset Retirement Obligations | Amount Balance at January 1, 2020 $ 3,065 Additional asset retirement obligations incurred 67 Liabilities settled ( 44 ) Accretion expense 62 Change in estimate 323 Balance at March 31, 2020 3,473 Additional asset retirement obligations incurred 81 Liabilities settled ( 9 ) Accretion expense 65 Balance at June 30, 2020 $ 3,610 |
Unit-Based Compensation (Tables
Unit-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Unit-Based Compensation [Abstract] | |
Schedule of Non-vested Unit-based Award Activity | Non-Vested Units Weighted-Average Grant-Date Fair Value Weighted-Average Remaining Vesting Term (in years) Non-vested at December 31, 2019 22,856 $ 14.00 Vested ( 22,856 ) 14.00 Non-vested at June 30, 2020 - $ - 0.0 |
Partners' Deficit (Tables)
Partners' Deficit (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Partners' Deficit [Abstract] | |
Schedule of Changes in Partners' Deficit | Changes in partners’ deficit are as follows (in thousands): Limited Partners Common Units- Public Common Units- Green Plains General Partner Total Balance, December 31, 2019 $ 114,006 $ ( 188,304 ) $ ( 1,449 ) $ ( 75,747 ) Quarterly cash distributions to unitholders ($ 0.475 per unit) ( 5,498 ) ( 5,504 ) ( 278 ) ( 11,280 ) Net income 5,078 5,084 207 10,369 Unit-based compensation, including general partner net contributions 79 - - 79 Balance, March 31, 2020 113,665 ( 188,724 ) ( 1,520 ) ( 76,579 ) Quarterly cash distributions to unitholders ($ 0.12 per unit) ( 1,389 ) ( 1,390 ) ( 57 ) ( 2,836 ) Net income 4,987 4,993 204 10,184 Unit-based compensation, including general partner net contributions 79 - - 79 Balance, June 30, 2020 $ 117,342 $ ( 185,121 ) $ ( 1,373 ) $ ( 69,152 ) Limited Partners Common Units- Public Common Units- Green Plains General Partner Total Balance, December 31, 2018 $ 115,352 $ ( 186,635 ) $ ( 1,171 ) $ ( 72,454 ) Quarterly cash distributions to unitholders ($ 0.475 per unit) ( 5,487 ) ( 5,504 ) ( 278 ) ( 11,269 ) Net income 5,014 5,029 205 10,248 Unit-based compensation, including general partner net contributions 79 - - 79 Balance, March 31, 2019 114,958 ( 187,110 ) ( 1,244 ) ( 73,396 ) Quarterly cash distributions to unitholders ($ 0.475 per unit) ( 5,487 ) ( 5,504 ) ( 278 ) ( 11,269 ) Net income 5,240 5,256 213 10,709 Unit-based compensation, including general partner net contributions 79 - - 79 Balance, June 30, 2019 $ 114,790 $ ( 187,358 ) $ ( 1,309 ) $ ( 73,877 ) |
Schedule of Allocation of Total Cash Distributions Declared | The total cash distributions declared for the three and six months ended June 30, 2020 and 2019, are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 General partner distributions $ 57 $ 226 $ 114 $ 451 Incentive distributions - 53 - 106 Total distributions to general partner 57 279 114 557 Limited partner common units - public 1,388 5,497 2,777 10,984 Limited partner common units - Green Plains 1,391 5,504 2,781 11,008 Total distributions to limited partners 2,779 11,001 5,558 21,992 Total distributions declared $ 2,836 $ 11,280 $ 5,672 $ 22,549 |
Earnings Per Unit (Tables)
Earnings Per Unit (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Unit [Abstract] | |
Schedule Of Calculation Of Earnings Per Limited Partner Unit - Basic And Diluted | Three Months Ended June 30, 2020 Limited Partner Common Units General Partner Total Net income: Distributions declared $ 2,779 $ 57 $ 2,836 Earnings in excess of distributions 7,201 147 7,348 Total net income $ 9,980 $ 204 $ 10,184 Weighted-average units outstanding - basic and diluted 23,138 Earnings per limited partner unit - basic and diluted $ 0.43 Six Months Ended June 30, 2020 Limited Partner Common Units General Partner Total Net income: Distributions declared $ 5,558 $ 114 $ 5,672 Earnings in excess of distributions 14,584 297 14,881 Total net income $ 20,142 $ 411 $ 20,553 Weighted-average units outstanding - basic and diluted 23,138 Earnings per limited partner unit - basic and diluted $ 0.87 Three Months Ended June 30, 2019 Limited Partner Common Units General Partner Total Net income: Distributions declared $ 11,001 $ 279 $ 11,280 Earnings less than distributions ( 505 ) ( 66 ) ( 571 ) Total net income $ 10,496 $ 213 $ 10,709 Weighted-average units outstanding - basic and diluted 23,120 Earnings per limited partner unit - basic and diluted $ 0.45 Six Months Ended June 30, 2019 Limited Partner Common Units General Partner Total Net income: Distributions declared $ 21,992 $ 557 $ 22,549 Earnings less than distributions ( 1,453 ) ( 139 ) ( 1,592 ) Total net income $ 20,539 $ 418 $ 20,957 Weighted-average units outstanding - basic and diluted 23,119 Earnings per limited partner unit - basic and diluted $ 0.89 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Components Of Lease Expense | Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Lease expense Operating lease expense $ 3,981 $ 4,076 $ 7,693 $ 8,285 Variable lease expense (benefit) (1) 125 ( 271 ) ( 25 ) ( 149 ) Total lease expense $ 4,106 $ 3,805 $ 7,668 $ 8,136 (1) Represents amounts incurred in excess of the minimum payments required for the handling and unloading of railcars for a certain lease, offset by railcar lease abatements provided by the lessor when railcars are out of service during periods of maintenance or upgrade. |
Supplemental Cash Flow Information Related To Operating Leases | Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,748 $ 4,395 $ 7,361 $ 8,486 Right-of-use assets obtained in exchange for lease obligations: Operating leases - 6,207 5,194 6,207 |
Supplemental Balance Sheet Information Related To Operating Leases | June 30, 2020 December 31, 2019 Weighted average remaining lease term 4.3 years 4.2 years Weighted average discount rate 5.19 % 5.19 % |
Schedule of Aggregate Minimum Lease Payments | Year Ending December 31, Amount 2020 $ 7,730 2021 9,997 2022 8,456 2023 5,278 2024 3,453 Thereafter 4,181 Total $ 39,095 Less: Present value discount ( 4,016 ) Operating lease liabilities $ 35,079 |
Components Of Lease Revenue | Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Lease revenue Operating lease revenue $ 17,177 $ 17,436 $ 34,131 $ 34,770 Variable lease revenue (1) 40 ( 266 ) 27 ( 198 ) Sublease revenue 59 204 136 428 Total lease revenue $ 17,276 $ 17,374 $ 34,294 $ 35,000 (1) Represents amounts delivered by Green Plains Trade and other customers in excess of various minimum volume commitments, as well as the difference between the contracted railcar volumetric capacity and the actual amount provided to Green Plains Trade during the period. |
Summary of Minimum Future Rental Revenue | Anticipated minimum operating lease revenue under this agreement assuming a consistent rate of $ 0.05312 per gallon for the remainder of 2020 and in future years is as follows (in thousands): Year Ending December 31, Amount 2020 $ 25,041 2021 50,082 2022 50,082 2023 50,082 2024 50,082 Thereafter 175,283 Total $ 400,652 |
Schedule of Aggregate Minimum Agreement Payments | Year Ending December 31, Amount 2020 $ 334 2021 142 2022 156 2023 - 2024 - Thereafter - Total $ 632 |
Amended Rail Transportation Services Agreement [Member] | |
Summary of Minimum Future Rental Revenue | Year Ending December 31, Amount 2020 $ 10,849 2021 14,757 2022 12,549 2023 6,807 2024 4,250 Thereafter 1,081 Total $ 50,293 |
Terminal Services And Logistics Solutions [Member] | |
Summary of Minimum Future Rental Revenue | Year Ending December 31, Amount 2020 $ 37 2021 74 2022 74 2023 74 2024 74 Thereafter 49 Total $ 382 |
Basis of Presentation and Des_3
Basis of Presentation and Description of Business (Narrative) (Details) gal in Billions | 6 Months Ended |
Jun. 30, 2020segmentgal | |
Basis of Presentation and Significant Accounting Policies [Line Items] | |
Number of Reportable Segments | segment | 1 |
Ethanol Segment [Member] | |
Basis of Presentation and Significant Accounting Policies [Line Items] | |
Percent of U.S. gasoline market | 10.00% |
Green Plains Inc. [Member] | |
Basis of Presentation and Significant Accounting Policies [Line Items] | |
Ethanol production capacity (in gallons) | gal | 1.1 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)mi | Jun. 30, 2019USD ($) | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 20,381 | $ 20,825 | $ 40,652 | $ 41,912 |
Average trucking miles traveled from receipt point to delivery point | mi | 100 | |||
Green Plains Trade Group LLC [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 19,000 | $ 19,100 | $ 38,000 | $ 37,900 |
Minimum [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Performance Obligation, Payment Terms | 10 days | |||
Percent of partnership's revenue, major customers benchmark | 10.00% | 10.00% | 10.00% | 10.00% |
Maximum [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Performance Obligation, Payment Terms | 30 days |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenue by Major Source) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | $ 20,381 | $ 20,825 | $ 40,652 | $ 41,912 | |
Service Revenues [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total service revenues | 3,105 | 3,451 | 6,358 | 6,912 | |
Terminal Services [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total service revenues | 2,015 | 2,329 | 4,100 | 4,895 | |
Trucking And Other [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total service revenues | 1,090 | 1,122 | 2,258 | 2,017 | |
Leasing Revenues [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total leasing revenues | [1] | 17,276 | 17,374 | 34,294 | 35,000 |
Storage And Throughput Services, Leasing [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total leasing revenues | [1] | 11,785 | 11,785 | 23,570 | 23,570 |
Railcar Transportation Services, Leasing [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total leasing revenues | [1] | 5,374 | 5,505 | 10,498 | 11,124 |
Terminal Services, Leasing [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total leasing revenues | [1] | $ 117 | $ 84 | $ 226 | $ 306 |
[1] | Leasing revenues do not represent revenues recognized from contracts with customers under ASC 606, Revenue from Contracts with Customers , and are accounted for under ASC 842, Leases . |
Revenue (Changes in Unearned Re
Revenue (Changes in Unearned Revenue From Service Agreements) (Details) - Service Agreements [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Beginning balance | $ 225 | $ 230 |
Revenue recognized included in beginning balance | (225) | (230) |
Net additions | 251 | 225 |
Ending balance | $ 251 | $ 225 |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2020item | |
Goodwill [Abstract] | |
Number of Reporting Units | 1 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - Credit Facility [Member] | 6 Months Ended | ||||
Jun. 30, 2020USD ($)item$ / shares | Dec. 31, 2021 | Jun. 04, 2020USD ($) | Jun. 03, 2020USD ($) | Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |||||
Debt Instrument, Maturity Date | Dec. 31, 2021 | ||||
Debt instrument, face amount | $ 135,000,000 | $ 135,000,000 | $ 200,000,000 | ||
Consolidated net leverage ratio decrease each quarter | 0.25 | ||||
Line of credit, carrying value | $ 130,000,000 | $ 132,100,000 | |||
Debt issuance costs | 3,100,000 | ||||
Line of credit, threshold of cash balance, payment required | $ 2,500,000 | ||||
Line of credit, theshold cash balance, Number of days | item | 5 | ||||
Line of credit, percent of net cash proceeds required for outstanding principal | 100.00% | ||||
Line of credit terms, maximum per unit quarterly payments | $ / shares | $ 0.12 | ||||
Scenario, Forecast [Member] | |||||
Debt Instrument [Line Items] | |||||
Consolidated net leverage ratio | 1.50 | ||||
Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Consolidated debt service coverage ratio | 1.10 | ||||
Debt instrument, effective rate | 1.00% | ||||
Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Consolidated net leverage ratio | 3 | ||||
LIBOR [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, basis spread on variable rate, percentage | 4.50% | ||||
LIBOR [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, basis spread on variable rate, percentage | 5.25% | ||||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 5,000,000 | ||||
Line of credit, commitment fee | 0.50% | ||||
Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 130,000,000 | ||||
Debt instrument, effective rate | 6.25% | ||||
Debt outstanding balance | $ 130,000,000 | ||||
Term Loan [Member] | Term Loan, Payment On July 15, 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal payments (including interest) | 7,500,000 | ||||
Term Loan [Member] | Term Loan, Payment Beginning August 15, 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal payments (including interest) | 2,500,000 | ||||
Term Loan [Member] | Term Loan, Payment Beginning In May 15, 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal payments (including interest) | 3,200,000 | ||||
Swing Line Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt outstanding balance | $ 0 | ||||
Swing Line Loans [Member] | Prime Rate [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, basis spread on variable rate, percentage | 3.50% | ||||
Swing Line Loans [Member] | Prime Rate [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, basis spread on variable rate, percentage | 4.25% |
Asset Retirement Obligations (S
Asset Retirement Obligations (Schedule of Change in the Liability for the Asset Retirement Obligations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||
Beginning Balance | $ 3,473 | $ 3,065 | $ 3,065 | |
Additional asset retirement obligations incurred | 81 | 67 | ||
Liabilities settled | (9) | (44) | ||
Accretion expense | 65 | 62 | 127 | $ 2 |
Change in estimate | 323 | 300 | ||
Ending Balance | $ 3,610 | $ 3,473 | $ 3,610 |
Unit-Based Compensation (Narrat
Unit-Based Compensation (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 2,500,000 | 2,500,000 | ||
Unrecognized compensation costs | $ 0 | $ 0 | ||
Limited Partner Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost (benefit) | $ 79 | $ 79 | $ 158 | $ 158 |
Unit-Based Compensation (Schedu
Unit-Based Compensation (Schedule of Non-vested Unit-based Award Activity) (Details) | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Unit-Based Compensation [Abstract] | |
Non-Vested Units, Non-vested at beginning of period | shares | 22,856 |
Non-Vested Units, Vested | shares | (22,856) |
Non-Vested Units, Non-vested at end of period | shares | |
Weighted-Average Grant-Date Fair Value, Non-vested at beginning of period | $ / shares | $ 14 |
Weighted-Average Grant-Date Fair Value, Vested | $ / shares | 14 |
Weighted-Average Grant-Date Fair Value, Non-vested at end of period | $ / shares | |
Weighted-Average Remaining Vesting Term (in years) | 0 years |
Partners' Deficit (Narrative) (
Partners' Deficit (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 16, 2020 | May 08, 2020 | Feb. 07, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Dec. 31, 2019 |
Limited Partners' Capital Account [Line Items] | |||||||||
Quarterly cash distribution to unitholders | $ 2,800 | $ 11,300 | $ 2,836 | $ 11,280 | $ 11,269 | $ 11,269 | |||
Distribution per unit | $ 0.46 | ||||||||
Distribution Made To Limited Partner And General Partner, Threshold In Days After End Of Each Calendar Quarter, Distribution Payment | 45 days | ||||||||
Declaration Date | Apr. 16, 2020 | Jul. 16, 2020 | Jan. 16, 2020 | ||||||
Record Date | May 1, 2020 | Jan. 31, 2020 | |||||||
Payment Date | May 8, 2020 | Feb. 7, 2020 | |||||||
Quarterly Distribution | $ 0.12 | $ 0.475 | $ 0.12 | $ 0.475 | $ 0.475 | $ 0.475 | |||
Payable Date | Aug. 7, 2020 | ||||||||
Close Of Business Date | Jul. 31, 2020 | ||||||||
Common Units [Member] | |||||||||
Limited Partners' Capital Account [Line Items] | |||||||||
Change in the number of common limited partner units outstanding | 0 | ||||||||
Subsequent Event [Member] | |||||||||
Limited Partners' Capital Account [Line Items] | |||||||||
Quarterly cash distribution declared | $ 2,800 | ||||||||
Distribution Made to Limited Partner, Distributions Declared, Per Unit | $ 0.12 | ||||||||
Maximum [Member] | |||||||||
Limited Partners' Capital Account [Line Items] | |||||||||
Incentive distribution, percentage of available cash distributed from operating surplus | 48.00% | ||||||||
General Partner [Member] | |||||||||
Limited Partners' Capital Account [Line Items] | |||||||||
Quarterly cash distribution to unitholders | $ 57 | $ 278 | $ 278 | $ 278 | |||||
Credit Facility [Member] | |||||||||
Limited Partners' Capital Account [Line Items] | |||||||||
Line of credit terms, maximum per unit quarterly payments | $ 0.12 |
Partners' Deficit (Schedule of
Partners' Deficit (Schedule of Changes in Partners' Deficit) (Details) - USD ($) $ / shares in Units, $ in Thousands | May 08, 2020 | Feb. 07, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||
Balance, Beginning period | $ (76,579) | $ (75,747) | $ (73,396) | $ (72,454) | $ (75,747) | $ (72,454) | ||
Quarterly cash distributions to unitholders ($0.475 per unit) | $ (2,800) | $ (11,300) | (2,836) | (11,280) | (11,269) | (11,269) | ||
Net income | 10,184 | 10,369 | 10,709 | 10,248 | 20,553 | 20,957 | ||
Unit-based compensation, including general partner net contributions | 79 | 79 | 79 | 79 | ||||
Balance, Ending period | $ (69,152) | $ (76,579) | $ (73,877) | $ (73,396) | (69,152) | (73,877) | ||
Quarterly distribution paid, per unit | $ 0.12 | $ 0.475 | $ 0.12 | $ 0.475 | $ 0.475 | $ 0.475 | ||
General Partner [Member] | ||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||
Balance, Beginning period | $ (1,520) | $ (1,449) | $ (1,244) | $ (1,171) | (1,449) | (1,171) | ||
Quarterly cash distributions to unitholders ($0.475 per unit) | (57) | (278) | (278) | (278) | ||||
Net income | 204 | 207 | 213 | 205 | 411 | 418 | ||
Balance, Ending period | (1,373) | (1,520) | (1,309) | (1,244) | (1,373) | (1,309) | ||
Common Units - Public [Member] | Limited Partners [Member] | ||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||
Balance, Beginning period | 113,665 | 114,006 | 114,958 | 115,352 | 114,006 | 115,352 | ||
Quarterly cash distributions to unitholders ($0.475 per unit) | (1,389) | (5,498) | (5,487) | (5,487) | ||||
Net income | 4,987 | 5,078 | 5,240 | 5,014 | ||||
Unit-based compensation, including general partner net contributions | 79 | 79 | 79 | 79 | ||||
Balance, Ending period | 117,342 | 113,665 | 114,790 | 114,958 | 117,342 | 114,790 | ||
Common Units - Green Plains [Member] | Limited Partners [Member] | ||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||
Balance, Beginning period | (188,724) | (188,304) | (187,110) | (186,635) | (188,304) | (186,635) | ||
Quarterly cash distributions to unitholders ($0.475 per unit) | (1,390) | (5,504) | (5,504) | (5,504) | ||||
Net income | 4,993 | 5,084 | 5,256 | 5,029 | ||||
Balance, Ending period | $ (185,121) | $ (188,724) | $ (187,358) | $ (187,110) | $ (185,121) | $ (187,358) |
Partners' Deficit (Schedule o_2
Partners' Deficit (Schedule of Allocation of Total Cash Distributions Declared) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Distribution Made to Limited Partner [Line Items] | ||||
Total distributions declared | $ 2,836 | $ 11,280 | $ 5,672 | $ 22,549 |
General Partner Distributions [Member] | ||||
Distribution Made to Limited Partner [Line Items] | ||||
Total distributions declared | 57 | 226 | 114 | 451 |
Incentive Distributions [Member] | ||||
Distribution Made to Limited Partner [Line Items] | ||||
Total distributions declared | 53 | 106 | ||
General Partner [Member] | ||||
Distribution Made to Limited Partner [Line Items] | ||||
Total distributions declared | 57 | 279 | 114 | 557 |
Limited Partners [Member] | ||||
Distribution Made to Limited Partner [Line Items] | ||||
Total distributions declared | 2,779 | 11,001 | 5,558 | 21,992 |
Limited Partners [Member] | Common Units - Public [Member] | ||||
Distribution Made to Limited Partner [Line Items] | ||||
Total distributions declared | 1,388 | 5,497 | 2,777 | 10,984 |
Limited Partners [Member] | Common Units - Green Plains [Member] | ||||
Distribution Made to Limited Partner [Line Items] | ||||
Total distributions declared | $ 1,391 | $ 5,504 | $ 2,781 | $ 11,008 |
Earnings Per Unit (Narrative) (
Earnings Per Unit (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2020shares | |
Earnings Per Unit [Abstract] | |
Potentially dilutive common or subordinated units outstanding | 0 |
Earnings Per Unit (Schedule Of
Earnings Per Unit (Schedule Of Calculation Of Earnings Per Limited Partner Unit - Basic And Diluted) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Unit [Line Items] | ||||||
Distributions declared | $ 2,836 | $ 11,280 | $ 5,672 | $ 22,549 | ||
Earnings (less than) in excess of distributions | 7,348 | (571) | 14,881 | (1,592) | ||
Total net income | 10,184 | $ 10,369 | 10,709 | $ 10,248 | 20,553 | 20,957 |
Limited Partners [Member] | ||||||
Earnings Per Unit [Line Items] | ||||||
Distributions declared | 2,779 | 11,001 | 5,558 | 21,992 | ||
General Partner [Member] | ||||||
Earnings Per Unit [Line Items] | ||||||
Distributions declared | 57 | 279 | 114 | 557 | ||
Earnings (less than) in excess of distributions | 147 | (66) | 297 | (139) | ||
Total net income | 204 | $ 207 | 213 | $ 205 | 411 | 418 |
Common Units [Member] | Limited Partners [Member] | ||||||
Earnings Per Unit [Line Items] | ||||||
Distributions declared | 2,779 | 11,001 | 5,558 | 21,992 | ||
Earnings (less than) in excess of distributions | 7,201 | (505) | 14,584 | (1,453) | ||
Total net income | $ 9,980 | $ 10,496 | $ 20,142 | $ 20,539 | ||
Weighted-average units outstanding - basic and diluted | 23,138 | 23,120 | 23,138 | 23,119 | ||
Earnings per limited partner unit - basic and diluted | $ 0.43 | $ 0.45 | $ 0.87 | $ 0.89 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) $ in Thousands, gal in Millions | Jul. 01, 2020$ / gal | Jun. 30, 2020USD ($)$ / galgal | Dec. 31, 2019USD ($) |
Other Commitments [Line Items] | |||
Operating lease right-of-use assets | $ 33,897 | $ 35,456 | |
Operating lease liabilities | 35,079 | ||
Estimated future minimum rental commitments | $ 26,600 | ||
Operating leases, not yet commenced, lease term | 5 years | ||
Fee-based Storage and Throughput Agreement [Member] | Green Plains Trade [Member] | |||
Other Commitments [Line Items] | |||
Service Agreement, Throughput Of Ethanol, Price Per Gallon | $ / gal | 0.05 | ||
Quarterly minimum volume commitment, throughput capacity (in gallons) | gal | 235.7 | ||
Lessor, Operating Lease, Term of Contract | 8 years | ||
Lessor, Operating Lease, Renewal Term | 1 year | ||
Fee-based Storage and Throughput Agreement [Member] | Green Plains Trade [Member] | Subsequent Event [Member] | |||
Other Commitments [Line Items] | |||
Service Agreement, Throughput Of Ethanol, Price Per Gallon | $ / gal | 0.05312 | ||
Minimum [Member] | |||
Other Commitments [Line Items] | |||
Lessee, Lease terms | 1 year | ||
Maximum [Member] | |||
Other Commitments [Line Items] | |||
Lessee, Lease terms | 11 years 3 months 18 days | ||
Amended Rail Transportation Services Agreement [Member] | |||
Other Commitments [Line Items] | |||
Lessor, Operating Lease, Term of Contract | 5 years | ||
Lessor, Operating Lease, Renewal Term | 1 year | ||
Terminal Services And Logistics Solutions [Member] | Maximum [Member] | |||
Other Commitments [Line Items] | |||
Lessor, Operating Lease, Renewal Term | 5 years 2 months 12 days |
Commitments and Contingencies_3
Commitments and Contingencies (Components Of Lease Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Commitments and Contingencies [Abstract] | |||||
Operating lease expense | $ 3,981 | $ 4,076 | $ 7,693 | $ 8,285 | |
Variable lease expense (benefit) | [1] | 125 | (271) | (25) | (149) |
Total lease expense | $ 4,106 | $ 3,805 | $ 7,668 | $ 8,136 | |
[1] | Represents amounts incurred in excess of the minimum payments required for the handling and unloading of railcars for a certain lease, offset by railcar lease abatements provided by the lessor when railcars are out of service during periods of maintenance or upgrade. |
Commitments and Contingencies_4
Commitments and Contingencies (Supplemental Cash Flow Information Related To Operating Leases) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Commitments and Contingencies [Abstract] | ||||
Cash paid from amounts included in the measurement of lease liabilities: Operating cash flows from operating leases | $ 3,748 | $ 4,395 | $ 7,361 | $ 8,486 |
Right-of-use assets obtained in exchange for lease obligations, Operating leases | $ 6,207 | $ 5,194 | $ 6,207 |
Commitments and Contingencies_5
Commitments and Contingencies (Supplemental Balance Sheet Information Related To Operating Leases) (Details) | Jun. 30, 2020 | Dec. 31, 2019 |
Commitments and Contingencies [Abstract] | ||
Weighted average remaining lease term | 4 years 3 months 18 days | 4 years 2 months 12 days |
Weighted average discount rate | 5.19% | 5.19% |
Commitments and Contingencies_6
Commitments and Contingencies (Schedule of Aggregate Minimum Lease Payments) (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Commitments and Contingencies [Abstract] | |
2020 | $ 7,730 |
2021 | 9,997 |
2022 | 8,456 |
2023 | 5,278 |
2024 | 3,453 |
Thereafter | 4,181 |
Total | 39,095 |
Less: Present value discount | (4,016) |
Operating lease liabilities | $ 35,079 |
Commitments and Contingencies_7
Commitments and Contingencies (Components Of Lease Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Commitments and Contingencies [Abstract] | |||||
Operating lease revenue | $ 17,177 | $ 17,436 | $ 34,131 | $ 34,770 | |
Variable lease revenue | [1] | 40 | (266) | 27 | (198) |
Sublease revenue | 59 | 204 | 136 | 428 | |
Total lease revenue | $ 17,276 | $ 17,374 | $ 34,294 | $ 35,000 | |
[1] | Represents amounts delivered by Green Plains Trade and other customers in excess of various minimum volume commitments, as well as the difference between the contracted railcar volumetric capacity and the actual amount provided to Green Plains Trade during the period. |
Commitments and Contingencies_8
Commitments and Contingencies (Summary of Minimum Future Rental Revenue) (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Amended Storage And Throughput Agreement [Member] | |
Lessor, Lease, Description [Line Items] | |
2020 | $ 25,041 |
2021 | 50,082 |
2022 | 50,082 |
2023 | 50,082 |
2024 | 50,082 |
Thereafter | 175,283 |
Total | 400,652 |
Amended Rail Transportation Services Agreement [Member] | |
Lessor, Lease, Description [Line Items] | |
2020 | 10,849 |
2021 | 14,757 |
2022 | 12,549 |
2023 | 6,807 |
2024 | 4,250 |
Thereafter | 1,081 |
Total | 50,293 |
Terminal Services And Logistics Solutions [Member] | |
Lessor, Lease, Description [Line Items] | |
2020 | 37 |
2021 | 74 |
2022 | 74 |
2023 | 74 |
2024 | 74 |
Thereafter | 49 |
Total | $ 382 |
Commitments and Contingencies_9
Commitments and Contingencies (Schedule of Aggregate Minimum Agreement Payments) (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Commitments and Contingencies [Abstract] | |
2020 | $ 334 |
2021 | 142 |
2022 | 156 |
2023 | |
2024 | |
Thereafter | |
Total | $ 632 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) $ in Thousands, gal in Millions | 3 Months Ended | 6 Months Ended | 36 Months Ended | |||
Jun. 30, 2020USD ($)$ / galitemgal | Jun. 30, 2019USD ($)$ / galitemgal | Jun. 30, 2020USD ($)$ / galitemgal | Jun. 30, 2019USD ($)$ / galitemgal | Dec. 31, 2022gal | Dec. 31, 2019USD ($) | |
Related Party Transaction [Line Items] | ||||||
Shared services expenses | $ 900 | $ 900 | $ 1,700 | $ 1,800 | ||
Distribution to Green Plains | 1,400 | 5,800 | 7,200 | 11,600 | ||
Distributions from equity method investment | 1,000 | 1,000 | ||||
Accounts receivable for project management fees and construction costs paid on behalf of the joint venture | 23 | 23 | $ 23 | |||
Green Plains Trade [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Minimum volume commitment credit received | 4,300 | |||||
Amount for eligible for recognition in revenue in future period prior to expiration | 4,300 | |||||
Green Plains Trade [Member] | Fee-based Storage and Throughput and Rail Transportation Agreements [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Revenue from related parties | $ 17,100 | $ 17,100 | $ 33,900 | $ 34,300 | ||
Green Plains Trade [Member] | Fee-based Storage and Throughput Agreement [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Service Agreement, Throughput Of Ethanol, Price Per Gallon | $ / gal | 0.05 | |||||
Quarterly minimum volume commitment, throughput capacity (in gallons) | gal | 235.7 | |||||
Green Plains Trade [Member] | Fee-based Rail Transportation Services Agreement [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Service Agreement, Railcar Volumetric Capacity, Monthly Fee, Price Per Gallon | $ / gal | 0.0219 | 0.0218 | 0.0217 | 0.0217 | ||
Railcar volumetric capacity (in gallons) | gal | 80.9 | 81.1 | 79.8 | 82.3 | ||
Number of railcars in fleet | item | 2,750 | 2,690 | 2,750 | 2,690 | ||
Green Plains Trade [Member] | Fee-based Rail Transportation Services Agreement, Logistical Operations Management And Other Services [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Service Agreement, Logistical Operations Management And Other Services Monthly Fee, Price Per Gallon | $ / gal | 0.0013 | |||||
Railcar volumetric capacity (in gallons) | gal | 0.7 | 1.6 | ||||
Green Plains Trade [Member] | Fee-based Trucking Transportation and Terminal Services Agreements [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Revenue from related parties | $ 1,900 | $ 2,000 | $ 4,100 | $ 3,600 | ||
Green Plains Trade [Member] | Birmingham Terminal Services Agreement [Member] | Scenario, Forecast [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Monthly minimum volume commitment throughput capacity (in gallons) | gal | 8.3 |
Equity Method Investment (Narra
Equity Method Investment (Narrative) (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020USD ($)itembbl | Dec. 31, 2019USD ($) | |
Related Party Transaction [Line Items] | ||
Investment in equity method investee | $ 3,662 | $ 4,329 |
NLR Energy Logistics LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Equity Method Investment, Ownership Percentage | 50.00% | |
Delek Renewables LLC [Member] | NLR Energy Logistics LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Equity Method Investment, Ownership Percentage | 50.00% | |
NLR Energy Logistics LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Number of train car units | item | 110 | |
Number of barrels of storage | bbl | 100,000 | |
Investment in equity method investee | $ 3,700 |