Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 01, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ADAMS RESOURCES & ENERGY, INC. | |
Entity Central Index Key | 2,178 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Entity Common Stock, Shares Outstanding | 4,217,596 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 111,536 | $ 109,393 |
Accounts receivable, net of allowance for doubtful accounts of $303 and $303, respectively | 117,153 | 121,353 |
Inventory | 19,267 | 12,192 |
Derivative assets | 312 | 166 |
Income tax receivable | 437 | 1,317 |
Prepayments and other current assets | 1,111 | 1,264 |
Total current assets | 249,816 | 245,685 |
Property and equipment, net | 27,744 | 29,362 |
Investments in unconsolidated affiliates | 425 | 425 |
Cash deposits and other assets | 6,523 | 7,232 |
Total assets | 284,508 | 282,704 |
Current liabilities: | ||
Accounts payable | 126,044 | 124,706 |
Accounts payable – related party | 5 | 5 |
Derivative liabilities | 289 | 145 |
Current portion of capital lease obligations | 341 | 338 |
Other current liabilities | 5,255 | 4,404 |
Total current liabilities | 131,934 | 129,598 |
Other long-term liabilities: | ||
Asset retirement obligations | 1,334 | 1,273 |
Capital lease obligations | 1,265 | 1,351 |
Deferred taxes and other liabilities | 2,646 | 3,363 |
Total liabilities | 137,179 | 135,585 |
Commitments and contingencies (Note 11) | ||
Shareholders’ equity: | ||
Preferred stock - $1.00 par value, 960,000 shares authorized, none outstanding | 0 | 0 |
Common stock - $0.10 par value, 7,500,000 shares authorized, 4,217,596 shares outstanding | 422 | 422 |
Contributed capital | 11,693 | 11,693 |
Retained earnings | 135,214 | 135,004 |
Total shareholders’ equity | 147,329 | 147,119 |
Total liabilities and shareholders’ equity | $ 284,508 | $ 282,704 |
UNAUDITED CONDENSED CONSOLIDAT3
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Allowance for doubtful accounts | $ 303 | $ 303 |
Shareholders’ equity: | ||
Preferred stock - par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock - shares authorized (in shares) | 960,000 | 960,000 |
Preferred stock - shares outstanding (in shares) | 0 | 0 |
Common stock - par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock - shares authorized (in shares) | 7,500,000 | 7,500,000 |
Common stock - shares outstanding (in shares) | 4,217,596 | 4,217,596 |
UNAUDITED CONDENSED CONSOLIDAT4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues: | ||
Marketing | $ 373,638 | $ 288,615 |
Transportation | 13,618 | 13,455 |
Oil and natural gas | 0 | 1,017 |
Total revenues | 387,256 | 303,087 |
Costs and expenses: | ||
Marketing | 369,183 | 285,153 |
Transportation | 12,301 | 12,162 |
Oil and natural gas | 0 | 750 |
General and administrative | 2,283 | 2,637 |
Depreciation, depletion and amortization | 2,412 | 3,969 |
Total costs and expenses | 386,179 | 304,671 |
Operating earnings (losses) | 1,077 | (1,584) |
Other income (expense): | ||
Interest income | 387 | 159 |
Interest expense | (19) | (1) |
Total other income (expense), net | 368 | 158 |
(Losses) earnings before income taxes | 1,445 | (1,426) |
Income tax benefit (provision) | (307) | 566 |
Net (losses) earnings | $ 1,138 | $ (860) |
Earnings (losses) per share: | ||
Basic and diluted net (losses) earnings per common share (in dollars per share) | $ 0.27 | $ (0.20) |
Weighted average number of common shares outstanding (in shares) | 4,218 | 4,218 |
Dividends per common share (in dollars per share) | $ 0.22 | $ 0.22 |
UNAUDITED CONDENSED CONSOLIDAT5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating activities: | ||
Net (losses) earnings | $ 1,138 | $ (860) |
Adjustments to reconcile net (losses) earnings to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 2,412 | 3,969 |
Gains (losses) on sales of property | (26) | 7 |
Impairment of oil and natural gas properties | 0 | 3 |
Deferred income taxes | (709) | 60 |
Net change in fair value contracts | (2) | (420) |
Changes in assets and liabilities: | ||
Accounts receivable | 4,200 | (1,968) |
Inventories | (7,075) | (7,557) |
Income tax receivable | 880 | (736) |
Prepayments and other current assets | 153 | 744 |
Accounts payable | 1,377 | 17,746 |
Accrued liabilities | 851 | 1,084 |
Other | 86 | 78 |
Net cash provided by operating activities | 3,285 | 12,150 |
Investing activities: | ||
Property and equipment additions | (866) | (1,006) |
Proceeds from property sales | 132 | 39 |
Insurance and state collateral (deposits) refunds | 603 | 476 |
Net cash used in investing activities | (131) | (491) |
Financing activities: | ||
Principal repayments of capital lease obligations | (83) | 0 |
Dividends paid on common stock | (928) | (928) |
Net cash used in financing activities | (1,011) | (928) |
Increase in cash and cash equivalents | 2,143 | 10,731 |
Cash and cash equivalents at beginning of period | 109,393 | 87,342 |
Cash and cash equivalents at end of period | $ 111,536 | $ 98,073 |
UNAUDITED CONDENSED CONSOLIDAT6
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Contributed Capital | Retained Earnings |
Beginning balance at Dec. 31, 2016 | $ 151,312 | $ 422 | $ 11,693 | $ 139,197 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net (losses) earnings | (860) | (860) | ||
Dividends paid on common stock | (928) | (928) | ||
Ending balance at Mar. 31, 2017 | 149,524 | 422 | 11,693 | 137,409 |
Beginning balance at Dec. 31, 2017 | 147,119 | 422 | 11,693 | 135,004 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net (losses) earnings | 1,138 | 1,138 | ||
Dividends paid on common stock | (928) | (928) | ||
Ending balance at Mar. 31, 2018 | $ 147,329 | $ 422 | $ 11,693 | $ 135,214 |
Organization and Basis of Prese
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Organization Adams Resources & Energy, Inc. (“AE”) is a publicly traded Delaware corporation organized in 1973, the common shares of which are listed on the NYSE American LLC under the ticker symbol “AE”. We and our subsidiaries are primarily engaged in the business of crude oil marketing, transportation and storage in various crude oil and natural gas basins in the lower 48 states of the United States (“U.S.”). We also conduct tank truck transportation of liquid chemicals and dry bulk and ISO tank container storage and transportation primarily in the lower 48 states of the U.S. with deliveries into Canada and Mexico and with terminals in the Gulf Coast region of the U.S. Unless the context requires otherwise, references to “we,” “us,” “our,” the “Company” or “AE” are intended to mean the business and operations of Adams Resources & Energy, Inc. and its consolidated subsidiaries. Historically, we have operated and reported in three business segments: (i) crude oil marketing, transportation and storage, (ii) tank truck transportation of liquid chemicals and dry bulk and ISO tank container storage and transportation, and (iii) upstream crude oil and natural gas exploration and production. We exited the upstream crude oil and natural gas exploration and production business during 2017 with the sale of our upstream crude oil and natural gas exploration and production assets as a result of a voluntary bankruptcy filing for this subsidiary. We expect the bankruptcy case involving the wholly owned subsidiary through which this business was conducted to be dismissed during the second quarter of 2018. Basis of Presentation Our results of operations for the three months ended March 31, 2018 are not necessarily indicative of results expected for the full year of 2018 . In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring accruals necessary for fair presentation. The condensed consolidated financial statements and the accompanying notes are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial statements and the rules of the U.S. Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures required by GAAP for complete annual financial statements have been omitted and, therefore, these interim financial statements should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2017 (the “ 2017 Form 10-K”) filed with the SEC on March 12, 2018. All significant intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of our financial statements in conformity with GAAP requires management to use estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. We base our estimates and judgments on historical experience and on various other assumptions and information we believe to be reasonable under the circumstances. Estimates and assumptions about future events and their effects cannot be perceived with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as the operating environment changes. While we believe the estimates and assumptions used in the preparation of these condensed consolidated financial statements are appropriate, actual results could differ from those estimates. |
General Accounting and Disclosu
General Accounting and Disclosure Matters | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
General Accounting and Disclosure Matters | General Accounting and Disclosure Matters Fair Value Measurements The carrying amounts reported in the unaudited condensed consolidated balance sheets for cash and cash equivalents, accounts receivable and accounts payable approximates fair value because of the immediate or short-term maturity of these financial instruments. Marketable securities are recorded at fair value based on market quotations from actively traded liquid markets. A three-tier hierarchy has been established that classifies fair value amounts recognized in the financial statements based on the observability of inputs used to estimate such fair values. The hierarchy considers fair value amounts based on observable inputs (Levels 1 and 2) to be more reliable and predictable than those based primarily on unobservable inputs (Level 3). At each balance sheet reporting date, we categorize our financial assets and liabilities using this hierarchy. Fair value contracts consist of derivative financial instruments and are recorded as either an asset or liability measured at its fair value. Changes in fair value are recognized immediately in earnings unless the derivatives qualify for, and we elect, cash flow hedge accounting. We had no contracts designated for hedge accounting during any current reporting periods (see Note 9 for further information). Investments in Unconsolidated Affiliates As a result of the voluntary bankruptcy filing in April 2017 of one of our wholly owned subsidiaries, Adams Resources Exploration Corporation (“AREC”), and our loss of control of AREC, we deconsolidated AREC in April 2017, and we recorded our investment in this subsidiary under the cost method of accounting. At March 31, 2018 , our remaining investment in AREC was $0.4 million . We expect the bankruptcy case to be dismissed during the second quarter of 2018. Income Taxes Income taxes are accounted for using the asset and liability method. Under this approach, deferred tax assets and liabilities are recognized based on anticipated future tax consequences attributable to differences between financial statement carrying amounts of these items and their respective tax basis. On December 22, 2017, the Tax Cut and Jobs Act was enacted into law resulting in a reduction in the federal corporate income tax rate from 35 percent to 21 percent for years beginning in 2018, which impacts our income tax provision or benefit. Letter of Credit Facility We maintain a Credit and Security Agreement with Wells Fargo Bank, National Association to provide up to a $60 million stand-by letter of credit facility used to support crude oil purchases within our crude oil marketing segment and for other purposes. We are currently using the letter of credit facility for a letter of credit related to our insurance program. This facility is collateralized by the eligible accounts receivable within our crude oil marketing segment and expires on August 27, 2019. The issued stand-by letters of credit are canceled as the underlying purchase obligations are satisfied by cash payment when due. The letter of credit facility places certain restrictions on Gulfmark Energy, Inc., one of our wholly owned subsidiaries. These restrictions include the maintenance of positive net earnings excluding inventory valuation changes, as defined, among other restrictions. We are currently in compliance with all such financial covenants. At March 31, 2018 and December 31, 2017 , we had $0.4 million and $2.2 million , respectively, outstanding under this facility. Property and Equipment Property and equipment is recorded at cost. Expenditures for additions, improvements and other enhancements to property and equipment are capitalized, and minor replacements, maintenance and repairs that do not extend asset life or add value are charged to expense as incurred. When property and equipment assets are retired or otherwise disposed of, the related cost and accumulated depreciation is removed from the accounts and any resulting gain or loss is included in results of operations in operating costs and expenses for the respective period. Property and equipment, except for land, is depreciated using the straight-line method over the estimated average useful lives of three to twenty years. We review our long-lived assets for impairment whenever there is evidence that the carrying value of such assets may not be recoverable. Any impairment recognized is permanent and may not be restored. Property and equipment is reviewed at the lowest level of identifiable cash flows. For properties requiring impairment, the fair value is estimated based on an internal discounted cash flow model. Cash flows are developed based on estimated future production, and prices are then discounted using a market based rate of return consistent with that used by us in evaluating cash flows for other assets of a similar nature. See Note 5 for additional information regarding our property and equipment. Recent Accounting Developments In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Codification (“ASC”) 842, Leases (“ASC 842”), which requires substantially all leases (with the exception of leases with a term of one year or less) to be recorded on the balance sheet using a method referred to as the right-of-use (“ROU”) asset approach. We plan to adopt the new standard on January 1, 2019 using the modified retrospective approach. The new standard introduces two lease accounting models, which result in a lease being classified as either a “finance” or “operating” lease on the basis of whether the lessee effectively obtains control of the underlying asset during the lease term. A lease would be classified as a finance lease if it meets one of five classification criteria, four of which are generally consistent with current lease accounting guidance. By default, a lease that does not meet the criteria to be classified as a finance lease will be deemed an operating lease. Regardless of classification, the initial measurement of both lease types will result in the balance sheet recognition of a ROU asset representing a company’s right to use the underlying asset for a specified period of time and a corresponding lease liability. The lease liability will be recognized at the present value of the future lease payments, and the ROU asset will equal the lease liability adjusted for any prepaid rent, lease incentives provided by the lessor, and any indirect costs. The subsequent measurement of each type of lease varies. Leases classified as a finance lease will be accounted for using the effective interest method. Under this approach, a lessee will amortize the ROU asset (generally on a straight-line basis in a manner similar to depreciation) and the discount on the lease liability (as a component of interest expense). Leases classified as an operating lease will result in the recognition of a single lease expense amount that is recorded on a straight-line basis (or another systematic basis, if more appropriate). We have started the process of reviewing our lease agreements in light of the new guidance. Although we are in the early stages of our ASC 842 implementation project, we anticipate that this new lease guidance will cause significant changes to the way leases are recorded, presented and disclosed in our consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Adoption of ASC 606 On January 1, 2018, we adopted ASC 606, Revenue from Contracts with Customers (“ASC 606”) and all related Accounting Standards Updates by applying the modified retrospective method to all contracts that were not completed on January 1, 2018. The modified retrospective approach required us to recognize the cumulative effect of initially applying the new standard as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The adoption of the new revenue standard did not result in a cumulative effect adjustment to our retained earnings since there was no significant impact upon adoption. We expect the impact of the adoption of the new standard to remain immaterial to our net earnings on an ongoing basis. Revenue Recognition The new revenue standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The new revenue standard requires entities to recognize revenue through the application of a five-step model, which includes: identification of the contract, identification of the performance obligations, determination of the transaction price, allocation of the transaction price to the performance obligations, and recognition of revenue as the entity satisfies the performance obligations. Our revenues are primarily generated from the marketing, transportation and storage of crude oil and other related products and the tank truck transportation of liquid chemicals and dry bulk. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in ASC 606. To identify the performance obligations, we considered all of the products or services promised in the contracts with customers, whether explicitly stated or implied based on customary business practices. Revenue is recognized when, or as, each performance obligation is satisfied under terms of the contract. For our crude oil marketing segment, most of our crude oil purchase and sale contracts qualify and are designated as non-trading activities, and we consider these contracts as normal purchases and sales activity. For normal purchases and sales, our customers are invoiced monthly based upon contractually agreed upon terms with revenue recognized in the month in which the physical product is delivered to the customer, generally upon delivery of the product to the customer. Revenue is recognized based on the transaction price and the quantity delivered. The majority of our crude oil sales contracts have multiple distinct performance obligations as the promise to transfer the individual goods (e.g., barrels of crude oil) is separately identifiable from the other goods promised within the contracts. Our performance obligations are satisfied at a point in time. For normal sales arrangements, revenue is recognized in the month in which control of the physical product is transferred to the customer, generally upon delivery of the product to the customer. For our transportation segment, each sales order associated with our master transportation agreements was considered a distinct performance obligation. The performance obligations associated with this segment are satisfied over time as the goods and services are delivered. Practical Expedients In connection with our adoption of ASC 606, we used significant judgment when assessing our contracts for impact upon adoption. For example, our contracts often include promises to transfer various goods and services to a customer. Determining whether goods and services are considered distinct performance obligations that should be accounted for separately versus together will continue to require significant judgment. We also used practical expedients permitted by ASC 606 when applicable. These practical expedients included: • Applying the new guidance only to contracts that were not completed as of January 1, 2018; and • Not accounting for the effects of significant financing components if the company expects that the period between when the entity transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable and customer advances and deposits (contract liabilities) on our consolidated balance sheet. Currently, we do not record any contract assets in our financial statements due to the timing of revenue recognized and when our customers are billed. Our crude oil marketing customers are generally billed monthly based on contractually agreed upon terms. However, we sometimes receive advances or deposits from customers before revenue is recognized, resulting in contract liabilities. These contract assets and liabilities, if any, are reported on our consolidated balance sheet at the end of each reporting period. Revenue Disaggregation The following table disaggregates our revenue by segment and by major source for the three months ended March 31, 2018 (in thousands): Reporting Segments Marketing Transportation Total Revenues from contracts with customers $ 360,085 $ 13,618 $ 373,703 Other (1) 13,553 — 13,553 Total revenues $ 373,638 $ 13,618 $ 387,256 Timing of revenue recognition: Goods transferred at a point in time $ 360,085 $ — $ 360,085 Services transferred over time — 13,618 13,618 Total revenues from contracts with customers $ 360,085 $ 13,618 $ 373,703 _______________ (1) Other marketing revenues are recognized under ASC 815, Derivatives and Hedging , and ASC 845, Nonmonetary Transactions – Purchases and Sales of Inventory with the Same Counterparty . Other Marketing Revenue Certain of the commodity purchase and sale contracts utilized by our crude oil marketing business qualify as derivative instruments with certain specifically identified contracts also designated as trading activity. From the time of contract origination, these trading activity contracts are marked-to-market and recorded on a net revenue basis in the accompanying consolidated financial statements. Certain of our crude oil contracts may be with a single counterparty to provide for similar quantities of crude oil to be bought and sold at different locations. These contracts are entered into for a variety of reasons, including effecting the transportation of the commodity, to minimize credit exposure, and/or to meet the competitive demands of the customer. These buy/sell arrangements are reflected on a net revenue basis in the accompanying consolidated financial statements. Reporting these crude oil contracts on a gross revenue basis would increase our reported revenues as follows for the periods indicated (in thousands): Three Months Ended March 31, 2018 2017 Revenue gross-up $ 45,691 $ 57,565 |
Prepayments and Other Current A
Prepayments and Other Current Assets | 3 Months Ended |
Mar. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepayments and Other Current Assets | Prepayments and Other Current Assets The components of prepayments and other current assets were as follows at the dates indicated (in thousands): March 31, December 31, 2018 2017 Insurance premiums $ 414 $ 425 Rents, licenses and other 697 839 Total $ 1,111 $ 1,264 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment The historical costs of our property and equipment and related accumulated depreciation balances were as follows at the dates indicated (in thousands): Estimated Useful Life March 31, December 31, in Years 2018 2017 Tractors and trailers (1) 5 – 6 $ 86,492 $ 88,065 Field equipment 2 – 5 18,827 18,490 Buildings 5 – 39 15,728 15,727 Office equipment 1 – 5 1,831 1,929 Land 1,790 1,790 Construction in progress 761 275 Total 125,429 126,276 Less accumulated depreciation (97,685 ) (96,914 ) Property and equipment, net $ 27,744 $ 29,362 ______________ (1) Amounts include assets held under capital leases for certain tractors in our marketing segment. Gross property and equipment associated with assets held under capital leases were $1.8 million and $1.8 million at March 31, 2018 and December 31, 2017 , respectively. Accumulated amortization associated with assets held under capital leases were $0.2 million and $0.1 million at March 31, 2018 and December 31, 2017 , respectively (see Note 11 for further information). Components of depreciation, depletion and amortization expense were as follows for the periods indicated (in thousands): Three Months Ended March 31, 2018 2017 Depreciation, depletion and amortization, excluding amounts under capital leases $ 2,322 $ 3,969 Amortization of property and equipment under capital leases 90 — Total depreciation, depletion and amortization $ 2,412 $ 3,969 |
Cash Deposits and Other Assets
Cash Deposits and Other Assets | 3 Months Ended |
Mar. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Cash Deposits and Other Assets | Cash Deposits and Other Assets Components of cash deposits and other assets were as follows at the dates indicated (in thousands): March 31, December 31, 2018 2017 Amounts associated with liability insurance program: Insurance collateral deposits $ 3,517 $ 3,767 Excess loss fund 1,959 2,284 Accumulated interest income 627 814 Other amounts: State collateral deposits 53 57 Materials and supplies 331 273 Other 36 37 Total $ 6,523 $ 7,232 We have established certain deposits to support participation in our liability insurance program and remittance of state crude oil severance taxes and other state collateral deposits. Insurance collateral deposits are held by the insurance company to cover past or potential open claims based upon a percentage of the maximum assessment under our insurance policies. Insurance collateral deposits are invested at the discretion of our insurance carrier. Excess amounts in our loss fund represent premium payments in excess of claims incurred to date that we may be entitled to recover through settlement or commutation as claim periods are closed. Interest income is earned on the majority of amounts held by the insurance companies and will be paid to us upon settlement of policy years. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Historically, our three reporting segments have been: (i) crude oil marketing, transportation and storage, (ii) tank truck transportation of liquid chemicals and dry bulk and ISO tank container storage and transportation, and (iii) upstream crude oil and natural gas exploration and production. Our upstream crude oil and natural gas exploration and production wholly owned subsidiary filed for bankruptcy in April 2017, and as a result of our loss of control of the wholly owned subsidiary, AREC was deconsolidated and is accounted for under the cost method of accounting. AREC remained a reportable segment until its deconsolidation, effective April 30, 2017. Information concerning our various business activities was as follows for the periods indicated (in thousands): Reporting Segments Marketing Transportation Oil and Gas Total Three Months Ended March 31, 2018 Revenues $ 373,638 $ 13,618 $ — $ 387,256 Segment operating (losses) earnings (1) 2,958 402 — 3,360 Depreciation, depletion and amortization 1,497 915 — 2,412 Property and equipment additions 793 73 — 866 Three Months Ended March 31, 2017 Revenues $ 288,615 $ 13,455 $ 1,017 $ 303,087 Segment operating (losses) earnings (1) 1,393 (298 ) (42 ) 1,053 Depreciation, depletion and amortization 2,069 1,591 309 3,969 Property and equipment additions 82 102 822 1,006 _______________ (1) Our marketing segment’s operating earnings included inventory liquidation gains of $0.6 million for the three months ended March 31, 2018, and inventory valuation losses of $0.7 million for the three months ended March 31, 2017. Segment operating earnings reflect revenues net of operating costs and depreciation, depletion and amortization expense and are reconciled to earnings (losses) before income taxes, as follows for the periods indicated (in thousands): Three Months Ended March 31, 2018 2017 Segment operating earnings $ 3,360 $ 1,053 General and administrative (2,283 ) (2,637 ) Operating earnings (losses) 1,077 (1,584 ) Interest income 387 159 Interest expense (19 ) (1 ) (Losses) earnings before income taxes $ 1,445 $ (1,426 ) Identifiable assets by industry segment were as follows at the dates indicated (in thousands): March 31, December 31, 2018 2017 Reporting segment: Marketing $ 135,759 $ 134,745 Transportation 29,422 29,069 Oil and Gas (1) 425 425 Cash and other assets 118,902 118,465 Total assets $ 284,508 $ 282,704 ____________________ (1) Amounts represent our cost method investment in this segment. Intersegment sales are insignificant. Other identifiable assets are primarily corporate cash, corporate accounts receivable, investments and properties not identified with any specific segment of our business. Accounting policies for transactions between reportable segments are consistent with applicable accounting policies as disclosed herein. |
Transactions with Affiliates
Transactions with Affiliates | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Transactions with Affiliates | Transactions with Affiliates We enter into certain transactions in the normal course of business with affiliated entities including direct cost reimbursement for shared phone and administrative services. In addition, we lease our corporate office space from an affiliated entity. We utilize our former affiliate, Bencap LLC (“Bencap”), to administer certain of our employee medical benefit programs including a detail audit of individual medical claims. Bencap earns a fee from us for providing such services at a discounted amount from its standard charge to non-affiliates. We had an equity method investment in Bencap, which was forfeited during the first quarter of 2017. As a result, we have no further ownership interest in Bencap. Activities with affiliates were as follows for the periods indicated (in thousands): Three Months Ended March 31, 2018 2017 Affiliate billings to us $ 15 $ 12 Billings to affiliates 2 1 Rentals paid to affiliate 122 167 Fees paid to Bencap (1) — 108 ___________________ (1) Amount represents fees paid to Bencap through the date of the forfeiture of our investment during the first quarter of 2017. As a result of the investment forfeiture, Bencap is no longer an affiliate. |
Derivative Instruments and Fair
Derivative Instruments and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Fair Value Measurements | Derivative Instruments and Fair Value Measurements Derivative Instruments In the normal course of our operations, our crude oil marketing segment purchases and sells crude oil. We seek to profit by procuring the commodity as it is produced and then delivering the material to the end users or the intermediate use marketplace. As typical for the industry, these transactions are made pursuant to the terms of forward month commodity purchase and/or sale contracts. Some of these contracts meet the definition of a derivative instrument, and therefore, we account for these contracts at fair value, unless the normal purchase and sale exception is applicable. These types of underlying contracts are standard for the industry and are the governing document for our crude oil marketing segment. None of our derivative instruments have been designated as hedging instruments. At March 31, 2018 , we had in place 20 commodity purchase and sale contracts, of which two of these contracts had no fair value associated with them as the contractual prices of crude oil were within the range of prices specified in the agreements. These commodity purchase and sale contracts encompassed approximately: • 322 barrels per day of crude oil during April through May 2018; • 258 barrels per day of crude oil during June 2018; • 646 barrels per day of crude oil during July 2018; • 322 barrels per day of crude oil during August through September 2018; • 258 barrels per day of crude oil during October through December 2018; and • 322 barrels per day of crude oil during January 2019 through March 2019. The estimated fair value of forward month commodity contracts (derivatives) reflected in the accompanying unaudited condensed consolidated balance sheet were as follows at the date indicated (in thousands): March 31, 2018 Balance Sheet Location and Amount Current Other Current Other Assets Assets Liabilities Liabilities Asset derivatives: Fair value forward hydrocarbon commodity contracts at gross valuation $ 312 $ — $ — $ — Liability derivatives: Fair value forward hydrocarbon commodity contracts at gross valuation — — 289 — Less counterparty offsets — — — — As reported fair value contracts $ 312 $ — $ 289 $ — At December 31, 2017 , we had in place 20 commodity purchase and sale contracts, of which four of these contracts had no fair value associated with them as the contractual prices of crude oil were within the range of prices specified in the agreements. These commodity purchase and sale contracts encompassed approximately: • 452 barrels per day of crude oil during January 2018; • 322 barrels per day of crude oil during February through May 2018; • 258 barrels per day of crude oil during June 2018; • 646 barrels per day of crude oil during July 2018; • 322 barrels per day of crude oil during August through September 2018; and • 258 barrels per day of crude oil during October through December 2018. The estimated fair value of forward month commodity contracts (derivatives) reflected in the accompanying unaudited condensed consolidated balance sheet were as follows at the date indicated (in thousands): December 31, 2017 Balance Sheet Location and Amount Current Other Current Other Assets Assets Liabilities Liabilities Asset derivatives: Fair value forward hydrocarbon commodity contracts at gross valuation $ 166 $ — $ — $ — Liability derivatives: Fair value forward hydrocarbon commodity contracts at gross valuation — — 145 — Less counterparty offsets — — — — As reported fair value contracts $ 166 $ — $ 145 $ — We only enter into commodity contracts with creditworthy counterparties and evaluate our exposure to significant counterparties on an ongoing basis. At March 31, 2018 and December 31, 2017 , we were not holding nor have we posted any collateral to support our forward month fair value derivative activity. We are not subject to any credit-risk related trigger events. We have no other financial investment arrangements that would serve to offset our derivative contracts. Forward month commodity contracts (derivatives) reflected in the accompanying unaudited condensed consolidated statements of operations were as follows for the periods indicated (in thousands): Gains (losses) Three Months Ended March 31, 2018 2017 Revenues – marketing $ 1 $ 420 Fair Value Measurements The following tables set forth, by level with the Level 1, 2 and 3 fair value hierarchy, the carrying values of our financial assets and liabilities at the dates indicated (in thousands): March 31, 2018 Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Assets Observable Unobservable and Liabilities Inputs Inputs Counterparty (Level 1) (Level 2) (Level 3) Offsets Total Derivatives: Current assets $ — $ 312 $ — $ — $ 312 Current liabilities — (289 ) — — (289 ) Net value $ — $ 23 $ — $ — $ 23 December 31, 2017 Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Assets Observable Unobservable and Liabilities Inputs Inputs Counterparty (Level 1) (Level 2) (Level 3) Offsets Total Derivatives: Current assets $ — $ 166 $ — $ — $ 166 Current liabilities — (145 ) — — (145 ) Net value $ — $ 21 $ — $ — $ 21 These assets and liabilities are measured on a recurring basis and are classified based on the lowest level of input used to estimate their fair value. Our assessment of the relative significance of these inputs requires judgments. When determining fair value measurements, we make credit valuation adjustments to reflect both our own nonperformance risk and our counterparty’s nonperformance risk. When adjusting the fair value of derivative contracts for the effect of nonperformance risk, we consider the impact of netting and any applicable credit enhancements. Credit valuation adjustments utilize Level 3 inputs, such as credit scores to evaluate the likelihood of default by us or our counterparties. At March 31, 2018 and December 31, 2017 , credit valuation adjustments were not significant to the overall valuation of our fair value contracts. As a result, applicable fair value assets and liabilities are included in their entirety in the fair value hierarchy. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Supplemental cash flows and non-cash transactions were as follows for the periods indicated (in thousands): Three Months Ended March 31, 2018 2017 Cash paid for interest $ 19 $ — Cash paid for federal and state taxes 52 14 Non-cash transactions: Change in accounts payable related to property and equipment additions (39 ) 836 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Capital Lease Obligations We have entered into capital leases for certain of our tractors in our crude oil marketing segment. The following table summarizes our principal contractual commitments outstanding under our capital leases at March 31, 2018 for the next five years, and in total thereafter (in thousands): Remainder of 2018 $ 299 2019 398 2020 398 2021 398 2022 255 Thereafter — Total minimum lease payments 1,748 Less: Amount representing interest (142 ) Present value of capital lease obligations 1,606 Less current portion of capital lease obligations (341 ) Total long-term capital lease obligations $ 1,265 Operating Lease Obligations We lease certain property and equipment under noncancellable and cancelable operating leases. Our significant lease agreements consist of (i) arrangements with independent truck owner-operators for use of their equipment and driver services; (ii) leased office space; and (iii) certain lease and terminal access contracts in order to provide tank storage and dock access for our crude oil marketing business. Currently, our significant lease agreements have terms that range from one to eight years. Lease expense is charged to operating costs and expenses on a straight-line basis over the period of expected economic benefit. Contingent rental payments are expensed as incurred. We are generally required to perform routine maintenance on the underlying leased assets. Maintenance and repairs of leased assets resulting from our operations are charged to expense as incurred. Rental expense was as follows for the periods indicated (in thousands): Three Months Ended March 31, 2018 2017 Rental expense $ 2,587 $ 3,228 At March 31, 2018 , rental obligations under non-cancelable operating leases and terminal arrangements with terms in excess of one year for the next five years and thereafter are payable as follows (in thousands): Remainder of 2018 $ 2,897 2019 2,016 2020 1,623 2021 1,513 2022 1,481 Thereafter 2,923 Total operating lease payments $ 12,453 Insurance Policies Under our automobile and workers’ compensation insurance policies that were in place through September 30, 2017, we pre-funded our estimated losses, and therefore, we could either receive a return of premium paid or be assessed for additional premiums up to pre-established limits. Additionally, in certain instances, the risk of insured losses was shared with a group of similarly situated entities through an insurance captive. We have appropriately recognized estimated expenses and liabilities related to these policies for losses incurred but not reported to us or our insurance carrier. The amount of pre-funded insurance premiums left to cover potential future losses are presented in the table below. If the potential insurance claims do not further develop, the pre-funded premiums will be returned to us as a premium refund. Effective October 1, 2017, we changed the structure of our automobile and workers’ compensation insurance policies. We exited the group captive and now establish a liability for expected claims incurred but not reported on a monthly basis as we move forward. As claims are paid, the liability is relieved. The amount of pre-funded insurance premiums left to cover potential future losses and our accruals for automobile and workers’ compensation claims were as follows at the dates indicated (in thousands): March 31, December 31, 2018 2017 Pre-funded premiums for losses incurred but not reported $ 732 $ 988 Accrued automobile and workers’ compensation claims 867 450 We maintain a self-insurance program for managing employee medical claims. A liability for expected claims incurred but not reported is established on a monthly basis. As claims are paid, the liability is relieved. We also maintain third party insurance stop-loss coverage for annual aggregate medical claims exceeding $4.5 million . Medical accrual amounts were as follows at the dates indicated (in thousands): March 31, December 31, 2018 2017 Accrued medical claims $ 1,353 $ 1,329 Litigation From time to time as incidental to our operations, we may become involved in various lawsuits and/or disputes. Primarily as an operator of an extensive trucking fleet, we are a party to motor vehicle accidents, worker compensation claims and other items of general liability as would be typical for the industry. We are presently unaware of any claims against us that are either outside the scope of insurance coverage or that may exceed the level of insurance coverage and could potentially represent a material adverse effect on our financial position or results of operations. |
General Accounting and Disclo18
General Accounting and Disclosure Matters (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Organization | Organization Adams Resources & Energy, Inc. (“AE”) is a publicly traded Delaware corporation organized in 1973, the common shares of which are listed on the NYSE American LLC under the ticker symbol “AE”. We and our subsidiaries are primarily engaged in the business of crude oil marketing, transportation and storage in various crude oil and natural gas basins in the lower 48 states of the United States (“U.S.”). We also conduct tank truck transportation of liquid chemicals and dry bulk and ISO tank container storage and transportation primarily in the lower 48 states of the U.S. with deliveries into Canada and Mexico and with terminals in the Gulf Coast region of the U.S. Unless the context requires otherwise, references to “we,” “us,” “our,” the “Company” or “AE” are intended to mean the business and operations of Adams Resources & Energy, Inc. and its consolidated subsidiaries. Historically, we have operated and reported in three business segments: (i) crude oil marketing, transportation and storage, (ii) tank truck transportation of liquid chemicals and dry bulk and ISO tank container storage and transportation, and (iii) upstream crude oil and natural gas exploration and production. We exited the upstream crude oil and natural gas exploration and production business during 2017 with the sale of our upstream crude oil and natural gas exploration and production assets as a result of a voluntary bankruptcy filing for this subsidiary. We expect the bankruptcy case involving the wholly owned subsidiary through which this business was conducted to be dismissed during the second quarter of 2018. |
Basis of Presentation | Basis of Presentation Our results of operations for the three months ended March 31, 2018 are not necessarily indicative of results expected for the full year of 2018 . In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring accruals necessary for fair presentation. The condensed consolidated financial statements and the accompanying notes are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial statements and the rules of the U.S. Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures required by GAAP for complete annual financial statements have been omitted and, therefore, these interim financial statements should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2017 (the “ 2017 Form 10-K”) filed with the SEC on March 12, 2018. All significant intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of our financial statements in conformity with GAAP requires management to use estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. We base our estimates and judgments on historical experience and on various other assumptions and information we believe to be reasonable under the circumstances. Estimates and assumptions about future events and their effects cannot be perceived with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as the operating environment changes. While we believe the estimates and assumptions used in the preparation of these condensed consolidated financial statements are appropriate, actual results could differ from those estimates. |
Fair Value Measurements | Fair Value Measurements The carrying amounts reported in the unaudited condensed consolidated balance sheets for cash and cash equivalents, accounts receivable and accounts payable approximates fair value because of the immediate or short-term maturity of these financial instruments. Marketable securities are recorded at fair value based on market quotations from actively traded liquid markets. A three-tier hierarchy has been established that classifies fair value amounts recognized in the financial statements based on the observability of inputs used to estimate such fair values. The hierarchy considers fair value amounts based on observable inputs (Levels 1 and 2) to be more reliable and predictable than those based primarily on unobservable inputs (Level 3). At each balance sheet reporting date, we categorize our financial assets and liabilities using this hierarchy. Fair value contracts consist of derivative financial instruments and are recorded as either an asset or liability measured at its fair value. Changes in fair value are recognized immediately in earnings unless the derivatives qualify for, and we elect, cash flow hedge accounting. We had no contracts designated for hedge accounting during any current reporting periods (see Note 9 for further information). |
Investments in Unconsolidated Affiliates | Investments in Unconsolidated Affiliates As a result of the voluntary bankruptcy filing in April 2017 of one of our wholly owned subsidiaries, Adams Resources Exploration Corporation (“AREC”), and our loss of control of AREC, we deconsolidated AREC in April 2017, and we recorded our investment in this subsidiary under the cost method of accounting. At March 31, 2018 , our remaining investment in AREC was $0.4 million . We expect the bankruptcy case to be dismissed during the second quarter of 2018. |
Income Taxes | Income Taxes Income taxes are accounted for using the asset and liability method. Under this approach, deferred tax assets and liabilities are recognized based on anticipated future tax consequences attributable to differences between financial statement carrying amounts of these items and their respective tax basis. On December 22, 2017, the Tax Cut and Jobs Act was enacted into law resulting in a reduction in the federal corporate income tax rate from 35 percent to 21 percent for years beginning in 2018, which impacts our income tax provision or benefit. |
Letter of Credit Facility | Letter of Credit Facility We maintain a Credit and Security Agreement with Wells Fargo Bank, National Association to provide up to a $60 million stand-by letter of credit facility used to support crude oil purchases within our crude oil marketing segment and for other purposes. We are currently using the letter of credit facility for a letter of credit related to our insurance program. This facility is collateralized by the eligible accounts receivable within our crude oil marketing segment and expires on August 27, 2019. The issued stand-by letters of credit are canceled as the underlying purchase obligations are satisfied by cash payment when due. The letter of credit facility places certain restrictions on Gulfmark Energy, Inc., one of our wholly owned subsidiaries. These restrictions include the maintenance of positive net earnings excluding inventory valuation changes, as defined, among other restrictions. We are currently in compliance with all such financial covenants. At March 31, 2018 and December 31, 2017 , we had $0.4 million and $2.2 million , respectively, outstanding under this facility. |
Property and Equipment | Property and Equipment Property and equipment is recorded at cost. Expenditures for additions, improvements and other enhancements to property and equipment are capitalized, and minor replacements, maintenance and repairs that do not extend asset life or add value are charged to expense as incurred. When property and equipment assets are retired or otherwise disposed of, the related cost and accumulated depreciation is removed from the accounts and any resulting gain or loss is included in results of operations in operating costs and expenses for the respective period. Property and equipment, except for land, is depreciated using the straight-line method over the estimated average useful lives of three to twenty years. We review our long-lived assets for impairment whenever there is evidence that the carrying value of such assets may not be recoverable. Any impairment recognized is permanent and may not be restored. Property and equipment is reviewed at the lowest level of identifiable cash flows. For properties requiring impairment, the fair value is estimated based on an internal discounted cash flow model. Cash flows are developed based on estimated future production, and prices are then discounted using a market based rate of return consistent with that used by us in evaluating cash flows for other assets of a similar nature. See Note 5 for additional information regarding our property and equipment. |
Recent Accounting Developments | Recent Accounting Developments In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Codification (“ASC”) 842, Leases (“ASC 842”), which requires substantially all leases (with the exception of leases with a term of one year or less) to be recorded on the balance sheet using a method referred to as the right-of-use (“ROU”) asset approach. We plan to adopt the new standard on January 1, 2019 using the modified retrospective approach. The new standard introduces two lease accounting models, which result in a lease being classified as either a “finance” or “operating” lease on the basis of whether the lessee effectively obtains control of the underlying asset during the lease term. A lease would be classified as a finance lease if it meets one of five classification criteria, four of which are generally consistent with current lease accounting guidance. By default, a lease that does not meet the criteria to be classified as a finance lease will be deemed an operating lease. Regardless of classification, the initial measurement of both lease types will result in the balance sheet recognition of a ROU asset representing a company’s right to use the underlying asset for a specified period of time and a corresponding lease liability. The lease liability will be recognized at the present value of the future lease payments, and the ROU asset will equal the lease liability adjusted for any prepaid rent, lease incentives provided by the lessor, and any indirect costs. The subsequent measurement of each type of lease varies. Leases classified as a finance lease will be accounted for using the effective interest method. Under this approach, a lessee will amortize the ROU asset (generally on a straight-line basis in a manner similar to depreciation) and the discount on the lease liability (as a component of interest expense). Leases classified as an operating lease will result in the recognition of a single lease expense amount that is recorded on a straight-line basis (or another systematic basis, if more appropriate). We have started the process of reviewing our lease agreements in light of the new guidance. Although we are in the early stages of our ASC 842 implementation project, we anticipate that this new lease guidance will cause significant changes to the way leases are recorded, presented and disclosed in our consolidated financial statements. |
Revenue Recognition, Practical Expedients, Contract Balances and Other Marketing Revenue | Revenue Recognition The new revenue standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The new revenue standard requires entities to recognize revenue through the application of a five-step model, which includes: identification of the contract, identification of the performance obligations, determination of the transaction price, allocation of the transaction price to the performance obligations, and recognition of revenue as the entity satisfies the performance obligations. Our revenues are primarily generated from the marketing, transportation and storage of crude oil and other related products and the tank truck transportation of liquid chemicals and dry bulk. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in ASC 606. To identify the performance obligations, we considered all of the products or services promised in the contracts with customers, whether explicitly stated or implied based on customary business practices. Revenue is recognized when, or as, each performance obligation is satisfied under terms of the contract. For our crude oil marketing segment, most of our crude oil purchase and sale contracts qualify and are designated as non-trading activities, and we consider these contracts as normal purchases and sales activity. For normal purchases and sales, our customers are invoiced monthly based upon contractually agreed upon terms with revenue recognized in the month in which the physical product is delivered to the customer, generally upon delivery of the product to the customer. Revenue is recognized based on the transaction price and the quantity delivered. The majority of our crude oil sales contracts have multiple distinct performance obligations as the promise to transfer the individual goods (e.g., barrels of crude oil) is separately identifiable from the other goods promised within the contracts. Our performance obligations are satisfied at a point in time. For normal sales arrangements, revenue is recognized in the month in which control of the physical product is transferred to the customer, generally upon delivery of the product to the customer. For our transportation segment, each sales order associated with our master transportation agreements was considered a distinct performance obligation. The performance obligations associated with this segment are satisfied over time as the goods and services are delivered. Practical Expedients In connection with our adoption of ASC 606, we used significant judgment when assessing our contracts for impact upon adoption. For example, our contracts often include promises to transfer various goods and services to a customer. Determining whether goods and services are considered distinct performance obligations that should be accounted for separately versus together will continue to require significant judgment. We also used practical expedients permitted by ASC 606 when applicable. These practical expedients included: • Applying the new guidance only to contracts that were not completed as of January 1, 2018; and • Not accounting for the effects of significant financing components if the company expects that the period between when the entity transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable and customer advances and deposits (contract liabilities) on our consolidated balance sheet. Currently, we do not record any contract assets in our financial statements due to the timing of revenue recognized and when our customers are billed. Our crude oil marketing customers are generally billed monthly based on contractually agreed upon terms. However, we sometimes receive advances or deposits from customers before revenue is recognized, resulting in contract liabilities. These contract assets and liabilities, if any, are reported on our consolidated balance sheet at the end of each reporting period. Other Marketing Revenue Certain of the commodity purchase and sale contracts utilized by our crude oil marketing business qualify as derivative instruments with certain specifically identified contracts also designated as trading activity. From the time of contract origination, these trading activity contracts are marked-to-market and recorded on a net revenue basis in the accompanying consolidated financial statements. Certain of our crude oil contracts may be with a single counterparty to provide for similar quantities of crude oil to be bought and sold at different locations. These contracts are entered into for a variety of reasons, including effecting the transportation of the commodity, to minimize credit exposure, and/or to meet the competitive demands of the customer. These buy/sell arrangements are reflected on a net revenue basis in the accompanying consolidated financial statements. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table disaggregates our revenue by segment and by major source for the three months ended March 31, 2018 (in thousands): Reporting Segments Marketing Transportation Total Revenues from contracts with customers $ 360,085 $ 13,618 $ 373,703 Other (1) 13,553 — 13,553 Total revenues $ 373,638 $ 13,618 $ 387,256 Timing of revenue recognition: Goods transferred at a point in time $ 360,085 $ — $ 360,085 Services transferred over time — 13,618 13,618 Total revenues from contracts with customers $ 360,085 $ 13,618 $ 373,703 _______________ (1) Other marketing revenues are recognized under ASC 815, Derivatives and Hedging , and ASC 845, Nonmonetary Transactions – Purchases and Sales of Inventory with the Same Counterparty . |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Reporting these crude oil contracts on a gross revenue basis would increase our reported revenues as follows for the periods indicated (in thousands): Three Months Ended March 31, 2018 2017 Revenue gross-up $ 45,691 $ 57,565 |
Prepayments and Other Current20
Prepayments and Other Current Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Components of Prepayments and Other Current Assets | The components of prepayments and other current assets were as follows at the dates indicated (in thousands): March 31, December 31, 2018 2017 Insurance premiums $ 414 $ 425 Rents, licenses and other 697 839 Total $ 1,111 $ 1,264 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Components of depreciation, depletion and amortization expense were as follows for the periods indicated (in thousands): Three Months Ended March 31, 2018 2017 Depreciation, depletion and amortization, excluding amounts under capital leases $ 2,322 $ 3,969 Amortization of property and equipment under capital leases 90 — Total depreciation, depletion and amortization $ 2,412 $ 3,969 The historical costs of our property and equipment and related accumulated depreciation balances were as follows at the dates indicated (in thousands): Estimated Useful Life March 31, December 31, in Years 2018 2017 Tractors and trailers (1) 5 – 6 $ 86,492 $ 88,065 Field equipment 2 – 5 18,827 18,490 Buildings 5 – 39 15,728 15,727 Office equipment 1 – 5 1,831 1,929 Land 1,790 1,790 Construction in progress 761 275 Total 125,429 126,276 Less accumulated depreciation (97,685 ) (96,914 ) Property and equipment, net $ 27,744 $ 29,362 ______________ (1) Amounts include assets held under capital leases for certain tractors in our marketing segment. Gross property and equipment associated with assets held under capital leases were $1.8 million and $1.8 million at March 31, 2018 and December 31, 2017 , respectively. Accumulated amortization associated with assets held under capital leases were $0.2 million and $0.1 million at March 31, 2018 and December 31, 2017 , respectively (see Note 11 for further information). |
Cash Deposits and Other Assets
Cash Deposits and Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Components of cash deposits and other assets | Components of cash deposits and other assets were as follows at the dates indicated (in thousands): March 31, December 31, 2018 2017 Amounts associated with liability insurance program: Insurance collateral deposits $ 3,517 $ 3,767 Excess loss fund 1,959 2,284 Accumulated interest income 627 814 Other amounts: State collateral deposits 53 57 Materials and supplies 331 273 Other 36 37 Total $ 6,523 $ 7,232 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Information concerning business activities | Information concerning our various business activities was as follows for the periods indicated (in thousands): Reporting Segments Marketing Transportation Oil and Gas Total Three Months Ended March 31, 2018 Revenues $ 373,638 $ 13,618 $ — $ 387,256 Segment operating (losses) earnings (1) 2,958 402 — 3,360 Depreciation, depletion and amortization 1,497 915 — 2,412 Property and equipment additions 793 73 — 866 Three Months Ended March 31, 2017 Revenues $ 288,615 $ 13,455 $ 1,017 $ 303,087 Segment operating (losses) earnings (1) 1,393 (298 ) (42 ) 1,053 Depreciation, depletion and amortization 2,069 1,591 309 3,969 Property and equipment additions 82 102 822 1,006 _______________ (1) Our marketing segment’s operating earnings included inventory liquidation gains of $0.6 million for the three months ended March 31, 2018, and inventory valuation losses of $0.7 million for the three months ended March 31, 2017. |
Reconciliation of segment earnings to earnings before income taxes | Segment operating earnings reflect revenues net of operating costs and depreciation, depletion and amortization expense and are reconciled to earnings (losses) before income taxes, as follows for the periods indicated (in thousands): Three Months Ended March 31, 2018 2017 Segment operating earnings $ 3,360 $ 1,053 General and administrative (2,283 ) (2,637 ) Operating earnings (losses) 1,077 (1,584 ) Interest income 387 159 Interest expense (19 ) (1 ) (Losses) earnings before income taxes $ 1,445 $ (1,426 ) |
Identifiable assets by industry segment | Identifiable assets by industry segment were as follows at the dates indicated (in thousands): March 31, December 31, 2018 2017 Reporting segment: Marketing $ 135,759 $ 134,745 Transportation 29,422 29,069 Oil and Gas (1) 425 425 Cash and other assets 118,902 118,465 Total assets $ 284,508 $ 282,704 ____________________ (1) Amounts represent our cost method investment in this segment. |
Transactions with Affiliates (T
Transactions with Affiliates (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Activities with affiliates | Activities with affiliates were as follows for the periods indicated (in thousands): Three Months Ended March 31, 2018 2017 Affiliate billings to us $ 15 $ 12 Billings to affiliates 2 1 Rentals paid to affiliate 122 167 Fees paid to Bencap (1) — 108 ___________________ (1) Amount represents fees paid to Bencap through the date of the forfeiture of our investment during the first quarter of 2017. As a result of the investment forfeiture, Bencap is no longer an affiliate. |
Derivative Instruments and Fa25
Derivative Instruments and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives reflected in the consolidated balance sheet | The estimated fair value of forward month commodity contracts (derivatives) reflected in the accompanying unaudited condensed consolidated balance sheet were as follows at the date indicated (in thousands): March 31, 2018 Balance Sheet Location and Amount Current Other Current Other Assets Assets Liabilities Liabilities Asset derivatives: Fair value forward hydrocarbon commodity contracts at gross valuation $ 312 $ — $ — $ — Liability derivatives: Fair value forward hydrocarbon commodity contracts at gross valuation — — 289 — Less counterparty offsets — — — — As reported fair value contracts $ 312 $ — $ 289 $ — The estimated fair value of forward month commodity contracts (derivatives) reflected in the accompanying unaudited condensed consolidated balance sheet were as follows at the date indicated (in thousands): December 31, 2017 Balance Sheet Location and Amount Current Other Current Other Assets Assets Liabilities Liabilities Asset derivatives: Fair value forward hydrocarbon commodity contracts at gross valuation $ 166 $ — $ — $ — Liability derivatives: Fair value forward hydrocarbon commodity contracts at gross valuation — — 145 — Less counterparty offsets — — — — As reported fair value contracts $ 166 $ — $ 145 $ — |
Derivatives reflected in the consolidated statement of operations | Forward month commodity contracts (derivatives) reflected in the accompanying unaudited condensed consolidated statements of operations were as follows for the periods indicated (in thousands): Gains (losses) Three Months Ended March 31, 2018 2017 Revenues – marketing $ 1 $ 420 |
Fair value assets and liabilities | The following tables set forth, by level with the Level 1, 2 and 3 fair value hierarchy, the carrying values of our financial assets and liabilities at the dates indicated (in thousands): March 31, 2018 Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Assets Observable Unobservable and Liabilities Inputs Inputs Counterparty (Level 1) (Level 2) (Level 3) Offsets Total Derivatives: Current assets $ — $ 312 $ — $ — $ 312 Current liabilities — (289 ) — — (289 ) Net value $ — $ 23 $ — $ — $ 23 December 31, 2017 Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Assets Observable Unobservable and Liabilities Inputs Inputs Counterparty (Level 1) (Level 2) (Level 3) Offsets Total Derivatives: Current assets $ — $ 166 $ — $ — $ 166 Current liabilities — (145 ) — — (145 ) Net value $ — $ 21 $ — $ — $ 21 |
Supplemental Cash Flow Inform26
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental cash flows and non-cash transactions were as follows for the periods indicated (in thousands): Three Months Ended March 31, 2018 2017 Cash paid for interest $ 19 $ — Cash paid for federal and state taxes 52 14 Non-cash transactions: Change in accounts payable related to property and equipment additions (39 ) 836 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of principal contractual commitments outstanding under capital leases | The following table summarizes our principal contractual commitments outstanding under our capital leases at March 31, 2018 for the next five years, and in total thereafter (in thousands): Remainder of 2018 $ 299 2019 398 2020 398 2021 398 2022 255 Thereafter — Total minimum lease payments 1,748 Less: Amount representing interest (142 ) Present value of capital lease obligations 1,606 Less current portion of capital lease obligations (341 ) Total long-term capital lease obligations $ 1,265 |
Rental expense | Rental expense was as follows for the periods indicated (in thousands): Three Months Ended March 31, 2018 2017 Rental expense $ 2,587 $ 3,228 |
Long-term non-cancelable operating leases and terminal arrangements for the next five years | At March 31, 2018 , rental obligations under non-cancelable operating leases and terminal arrangements with terms in excess of one year for the next five years and thereafter are payable as follows (in thousands): Remainder of 2018 $ 2,897 2019 2,016 2020 1,623 2021 1,513 2022 1,481 Thereafter 2,923 Total operating lease payments $ 12,453 |
Schedule of expenses and losses incurred but not reported and accrued workers' compensation | The amount of pre-funded insurance premiums left to cover potential future losses and our accruals for automobile and workers’ compensation claims were as follows at the dates indicated (in thousands): March 31, December 31, 2018 2017 Pre-funded premiums for losses incurred but not reported $ 732 $ 988 Accrued automobile and workers’ compensation claims 867 450 |
Schedule of accrued medical claims | Medical accrual amounts were as follows at the dates indicated (in thousands): March 31, December 31, 2018 2017 Accrued medical claims $ 1,353 $ 1,329 |
Organization and Basis of Pre28
Organization and Basis of Presentation (Details) | 3 Months Ended |
Mar. 31, 2018statesegment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of states in which entity operates | state | 48 |
Number of operating segments | 3 |
Number of reportable segments | 3 |
General Accounting and Disclo29
General Accounting and Disclosure Matters - Investments in Unconsolidated Affiliates (Details) $ in Millions | Mar. 31, 2018USD ($) |
AREC | |
Investments [Abstract] | |
Cost method investments | $ 0.4 |
General Accounting and Disclo30
General Accounting and Disclosure Matters - Letters of Credit Facility (Details) - Wells Fargo Bank - Standby Letter of Credit - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Letter of Credit Facility [Abstract] | ||
Line of credit facility, maximum borrowing capacity | $ 60,000,000 | |
Stand-by letters of credit | $ 400,000 | $ 2,200,000 |
General Accounting and Disclo31
General Accounting and Disclosure Matters - Property and Equipment (Details) | 3 Months Ended |
Mar. 31, 2018 | |
Minimum | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, useful life | 3 years |
Maximum | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, useful life | 20 years |
Revenue Recognition - Revenue D
Revenue Recognition - Revenue Disaggregation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 387,256 | $ 303,087 |
Total revenues from contracts with customers | 373,703 | |
Goods transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 360,085 | |
Services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 13,618 | |
Revenues from contracts with customers | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 373,703 | |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 13,553 | |
Marketing | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 373,638 | |
Total revenues from contracts with customers | 360,085 | |
Marketing | Goods transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 360,085 | |
Marketing | Services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | |
Marketing | Revenues from contracts with customers | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 360,085 | |
Marketing | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 13,553 | |
Transportation | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 13,618 | |
Total revenues from contracts with customers | 13,618 | |
Transportation | Goods transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 0 | |
Transportation | Services transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 13,618 | |
Transportation | Revenues from contracts with customers | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | 13,618 | |
Transportation | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from contracts with customers | $ 0 |
Revenue Recognition - Other Rev
Revenue Recognition - Other Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues from contracts with customers | $ 373,703 | |
Accounting Standards Update 2014-09 | Revenue gross-up | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues from contracts with customers | $ 45,691 | $ 57,565 |
Prepayments and Other Current34
Prepayments and Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Insurance premiums | $ 414 | $ 425 |
Rents, licenses and other | 697 | 839 |
Total | $ 1,111 | $ 1,264 |
Property and Equipment - Cost o
Property and Equipment - Cost of Property and Equipment and related Accumulated Depreciation, Depletion and Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 125,429 | $ 126,276 | |
Less accumulated depreciation, depletion and amortization | (97,685) | (96,914) | |
Property and equipment, net | 27,744 | 29,362 | |
Total depreciation, depletion and amortization | $ 2,412 | $ 3,969 | |
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 3 years | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 20 years | ||
Tractors and trailers | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 86,492 | 88,065 | |
Tractors and trailers | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 5 years | ||
Tractors and trailers | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 6 years | ||
Field equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 18,827 | 18,490 | |
Field equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 2 years | ||
Field equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 5 years | ||
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 15,728 | 15,727 | |
Buildings | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 5 years | ||
Buildings | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 39 years | ||
Office equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 1,831 | 1,929 | |
Office equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 1 year | ||
Office equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 5 years | ||
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 1,790 | 1,790 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 761 | 275 | |
Assets held under capital leases | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 1,800 | 1,800 | |
Less accumulated depreciation, depletion and amortization | (200) | $ (100) | |
Total depreciation, depletion and amortization | 90 | 0 | |
Assets not held under capital leases | |||
Property, Plant and Equipment [Line Items] | |||
Total depreciation, depletion and amortization | $ 2,322 | $ 3,969 |
Cash Deposits and Other Asset36
Cash Deposits and Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Insurance collateral deposits | $ 3,517 | $ 3,767 |
Excess loss fund | 1,959 | 2,284 |
Accumulated interest income | 627 | 814 |
State collateral deposits | 53 | 57 |
Materials and supplies | 331 | 273 |
Other | 36 | 37 |
Total | $ 6,523 | $ 7,232 |
Segment Reporting, Information
Segment Reporting, Information Concerning Business Activities (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($)segment | Mar. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | segment | 3 | |
Total revenues | $ 387,256 | $ 303,087 |
Segment operating (losses) earnings | 1,077 | (1,584) |
Depreciation, depletion and amortization | 2,412 | 3,969 |
Marketing | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 373,638 | |
Inventory liquidation gains and valuation (losses) | (600) | 700 |
Transportation | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 13,618 | |
Reporting Segments | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 387,256 | 303,087 |
Segment operating (losses) earnings | 3,360 | 1,053 |
Depreciation, depletion and amortization | 2,412 | 3,969 |
Property and equipment additions | 866 | 1,006 |
Reporting Segments | Marketing | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 373,638 | 288,615 |
Segment operating (losses) earnings | 2,958 | 1,393 |
Depreciation, depletion and amortization | 1,497 | 2,069 |
Property and equipment additions | 793 | 82 |
Reporting Segments | Transportation | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 13,618 | 13,455 |
Segment operating (losses) earnings | 402 | (298) |
Depreciation, depletion and amortization | 915 | 1,591 |
Property and equipment additions | 73 | 102 |
Reporting Segments | Oil and Gas | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 0 | 1,017 |
Segment operating (losses) earnings | 0 | (42) |
Depreciation, depletion and amortization | 0 | 309 |
Property and equipment additions | $ 0 | $ 822 |
Segment Reporting, Reconciliati
Segment Reporting, Reconciliation of Segment Earnings to Earnings Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ||
Operating earnings (losses) | $ 1,077 | $ (1,584) |
Interest income | 387 | 159 |
Interest expense | (19) | (1) |
(Losses) earnings before income taxes | 1,445 | (1,426) |
Reporting Segments | ||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ||
Operating earnings (losses) | 3,360 | 1,053 |
General and administrative | ||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ||
Operating earnings (losses) | (2,283) | (2,637) |
Segment reconciling items | ||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ||
Interest income | 387 | 159 |
Interest expense | $ (19) | $ (1) |
Segment Reporting, Identifiable
Segment Reporting, Identifiable Assets by Industry Segment (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Segment Reconciliation [Abstract] | ||
Total assets | $ 284,508 | $ 282,704 |
Reporting Segments | ||
Segment Reconciliation [Abstract] | ||
Total assets | 284,508 | 282,704 |
Reporting Segments | Marketing | ||
Segment Reconciliation [Abstract] | ||
Total assets | 135,759 | 134,745 |
Reporting Segments | Transportation | ||
Segment Reconciliation [Abstract] | ||
Total assets | 29,422 | 29,069 |
Reporting Segments | Oil and Gas | ||
Segment Reconciliation [Abstract] | ||
Total assets | 425 | 425 |
Cash and other assets | ||
Segment Reconciliation [Abstract] | ||
Total assets | $ 118,902 | $ 118,465 |
Transactions with Affiliates (D
Transactions with Affiliates (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Affiliated entities | ||
Transactions with Affiliates [Abstract] | ||
Affiliate billings to us | $ 15 | $ 12 |
Billings to affiliates | 2 | 1 |
Rentals paid to affiliate | 122 | 167 |
Fees paid to Bencap | $ 0 | $ 108 |
Bencap LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Percentage of equity method investment | 0.00% |
Derivative Instruments and Fa41
Derivative Instruments and Fair Value Measurements - Narrative (Details) - Commodity Contract | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018barrel_of_oil_per_daycontract | Dec. 31, 2017barrel_of_oil_per_daycontract | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Number of contracts held | contract | 20 | 20 |
Reported Value Measurement | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Number of contracts held | contract | 2 | 4 |
January 2,018 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Production | 452 | |
February through May 2018 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Production | 322 | |
April through May 2018 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Production | 322 | |
June 2,018 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Production | 258 | 258 |
July 2,018 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Production | 646 | 646 |
August through September 2018 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Production | 322 | 322 |
October through December 2018 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Production | 258 | 258 |
January through March 2019 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Production | 322 |
Derivative Instruments and Fa42
Derivative Instruments and Fair Value Measurements - Use of Derivative Instruments (Details) - Commodity Contract - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Revenues – marketing | |||
Derivatives, Fair Value [Line Items] | |||
Gain (loss) on derivative | $ 1 | $ 420 | |
Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset derivatives | 312 | $ 166 | |
Liability derivatives | 0 | 0 | |
Less counterparty offsets | 0 | 0 | |
As reported fair value contracts | 312 | 166 | |
Other Assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset derivatives | 0 | 0 | |
Liability derivatives | 0 | 0 | |
Less counterparty offsets | 0 | 0 | |
As reported fair value contracts | 0 | 0 | |
Current Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Asset derivatives | 0 | 0 | |
Liability derivatives | 289 | 145 | |
Less counterparty offsets | 0 | 0 | |
As reported fair value contracts | 289 | 145 | |
Other Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Asset derivatives | 0 | 0 | |
Liability derivatives | 0 | 0 | |
Less counterparty offsets | 0 | 0 | |
As reported fair value contracts | $ 0 | $ 0 |
Derivative Instruments and Fa43
Derivative Instruments and Fair Value Measurements - Fair Value Measurements (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Derivatives: | ||
Current assets | $ 312 | $ 166 |
Current assets, counterparty offsets | 0 | 0 |
Current liabilities | (289) | (145) |
Current liabilities, counterparty offsets | 0 | 0 |
Net value | 23 | 21 |
Net value, counterparty offsets | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | ||
Derivatives: | ||
Current assets | 0 | 0 |
Current liabilities | 0 | 0 |
Net value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Derivatives: | ||
Current assets | 312 | 166 |
Current liabilities | (289) | (145) |
Net value | 23 | 21 |
Fair Value, Inputs, Level 3 [Member] | ||
Derivatives: | ||
Current assets | 0 | 0 |
Current liabilities | 0 | 0 |
Net value | $ 0 | $ 0 |
Supplemental Cash Flow Inform44
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | ||
Cash paid for interest | $ 19 | $ 0 |
Cash paid for federal and state taxes | 52 | 14 |
Non-cash transactions: | ||
Change in accounts payable related to property and equipment additions | $ (39) | $ 836 |
Commitments and Contingencies S
Commitments and Contingencies Schedule of principal contractual commitments outstanding under our capital leases(Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Commitments and Contingencies Disclosure [Abstract] | ||
Remainder of 2018 | $ 299 | |
2,019 | 398 | |
2,020 | 398 | |
2,021 | 398 | |
2,022 | 255 | |
Thereafter | 0 | |
Total minimum lease payments | 1,748 | |
Less: Amount representing interest | (142) | |
Present value of capital lease obligations | 1,606 | |
Less current portion of capital lease obligations | (341) | $ (338) |
Total long-term capital lease obligations | $ 1,265 | $ 1,351 |
Commitments and Contingencies46
Commitments and Contingencies (Details) | 3 Months Ended |
Mar. 31, 2018 | |
Minimum | |
Loss Contingencies [Line Items] | |
Operating lease term | 1 year |
Maximum | |
Loss Contingencies [Line Items] | |
Operating lease term | 8 years |
Commitments and Contingencies R
Commitments and Contingencies Rental expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Rental expense | $ 2,587 | $ 3,228 |
Commitments and Contingencies L
Commitments and Contingencies Long-term non-cancelable operating leases and terminal arrangements for the next five years (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2018 | $ 2,897 |
2,019 | 2,016 |
2,020 | 1,623 |
2,021 | 1,513 |
2,022 | 1,481 |
Thereafter | 2,923 |
Total operating lease payments | $ 12,453 |
Commitments and Contingencies49
Commitments and Contingencies Schedule of expenses and losses incurred but not reported and accrued workers' compensation (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Commitments and Contingencies Disclosure [Abstract] | ||
Pre-funded premiums for losses incurred but not reported | $ 732 | $ 988 |
Accrued automobile and workers’ compensation claims | $ 867 | $ 450 |
Commitments and Contingencies50
Commitments and Contingencies Schedule of accrued medical claims (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Accrued Medical Claims [Abstract] | ||
Aggregate medical claims for umbrella insurance coverage per calendar year | $ 4,500 | |
Accrued medical claims | $ 1,353 | $ 1,329 |