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Income Tax Expense (Tables) | 12 Months Ended
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Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Schedule of Income before Income Tax, Domestic and Foreign | The Partnership’s income before income tax expense by geographic area were as follows:
|  | Year Ended December 31,
|  | 2025 |  | 2024 |  | 2023
United States |  | $ | 397 |  |  | $ | 1,040 |  |  | $ | 430 |
Foreign |  | 192 |  |  | 9 |  |  | — |
Total |  | $ | 589 |  |  | $ | 1,049 |  |  | $ | 430 |
Cash paid for taxes were as follows:
|  | Year Ended December 31,
|  | 2025 |  | 2024 |  | 2023
Cash paid for income taxes, net of refunds (excluding federal tax credits purchased from non-governmental third parties) |  |  |  |  |  |
Federal |  | $ | (68) |  |  | $ | 105 |  |  | $ | 21 |
State |  |  |  |  |  |
Pennsylvania |  | 2 |  |  | 7 |  |  | 2 |
New Jersey |  | 2 |  |  | 12 |  |  | 3 |
Other |  | 3 |  |  | 11 |  |  | 3 |
Foreign |  |  |  |  |  |
Canada |  | 62 |  |  | — |  |  | — |
Other |  | 2 |  |  | — |  |  | — |
Total |  | $ | 3 |  |  | $ | 135 |  |  | $ | 29 |
Cash paid for federal tax credits purchased from non-governmental third parties |  | $ | 41 |  |  | $ | 47 |  |  | $ | — |
Schedule of Federal and State Components of Income Tax Expense (Benefit) | The components of the federal and state income tax expense (benefit) of our taxable subsidiaries were summarized as follows:
| Year Ended December 31,
| 2025 |  | 2024 |  | 2023
Current: |  |  |  |  |
Federal | $ | 18 |  |  | $ | 152 |  |  | $ | 16 |
State | (1) |  |  | 37 |  |  | 7 |
Foreign | 7 |  |  | — |  |  | — |
Total current income tax expense | 24 |  |  | 189 |  |  | 23 |
Deferred: |  |  |  |  |
Federal | 22 |  |  | (19) |  |  | 9 |
State | (8) |  |  | 5 |  |  | 4 |
Foreign | 24 |  |  | — |  |  | — |
Total deferred tax expense (benefit) | 38 |  |  | (14) |  |  | 13 |
Income tax expense | $ | 62 |  |  | $ | 175 |  |  | $ | 36 |
Schedule of Effective Income Tax Rate Reconciliation | Our effective tax rate differs from the statutory rate primarily due to Partnership earnings that are not subject to U.S. federal and most state income taxes at the Partnership level. A reconciliation of income tax expense at the U.S. federal statutory rate to net income tax expense is as follows:
| Year Ended December 31,
| 2025 |  | 2024 |  | 2023
| Amount |  | Percent |  | Amount |  | Percent |  | Amount |  | Percent
Income tax expense at United States statutory rate | $ | 124 |  |  | 21.00 | % |  | $ | 220 |  |  | 21.00 | % |  | $ | 90 |  |  | 21.00 | %
Increase (reduction) in income taxes resulting from: |  |  |  |  |  |  |  |  |  |  |
Non-taxable Partnership earnings | (67) |  |  | (11.40) |  |  | (84) |  |  | (8.04) |  |  | (64) |  |  | (14.85) |
State and local income tax, net of federal income tax effect (1) | 4 |  |  | 0.66 |  |  | 33 |  |  | 3.11 |  |  | 9 |  |  | 2.11 |
Foreign tax effects | (4) |  |  | (0.68) |  |  | — |  |  | — |  |  | — |  |  | — |
Effect of cross-border tax laws - subpart F income inclusion | 6 |  |  | 1.06 |  |  | — |  |  | — |  |  | — |  |  | — |
Changes in unrecognized tax benefits - state apportionment positions | (10) |  |  | (1.67) |  |  | 1 |  |  | 0.07 |  |  | 1 |  |  | 0.15 |
Other: |  |  |  |  |  |  |  |  |  |  |
Deferred tax remeasurement | 15 |  |  | 2.64 |  |  | — |  |  | — |  |  | — |  |  | — |
Discount on purchased tax credits | (4) |  |  | (0.64) |  |  | — |  |  | — |  |  | — |  |  | — |
Interest on federal refund | (5) |  |  | (0.93) |  |  | — |  |  | — |  |  | — |  |  | — |
Other adjustments | 3 |  |  | 0.56 |  |  | 5 |  |  | 0.48 |  |  | — |  |  | — |
Income tax expense | $ | 62 |  |  | 10.60 | % |  | $ | 175 |  |  | 16.62 | % |  | $ | 36 |  |  | 8.41 | %
(1)State taxes that made up the majority (greater than 50 percent) of the tax effect in this category were Pennsylvania in 2025, New Jersey, Pennsylvania and New York in 2024, and Pennsylvania, Hawaii and New Jersey in 2023.
Schedule of Principal Components of Deferred Tax Assets (Liabilities) | Deferred taxes result from the temporary differences between financial reporting carrying amounts and the tax basis of existing assets and liabilities. The principal components of deferred tax assets and liabilities were as follows:
| December 31, 2025 |  | December 31, 2024
Deferred income tax assets: |  |  |
Net operating losses, credits and other carryforwards | $ | 233 |  |  | $ | 16 |
Other | 45 |  |  | 18 |
Total deferred income tax assets | 278 |  |  | 34 |
Valuation allowance | (62) |  |  | — |
Net deferred income tax assets | 216 |  |  | 34 |
Deferred income tax liabilities: |  |  |
Property, plant and equipment | 846 |  |  | 49 |
Trademarks and other intangibles | 239 |  |  | 82 |
Investments in affiliates | 54 |  |  | 53 |
Other | 38 |  |  | 1 |
Total deferred tax liabilities | 1,177 |  |  | 185 |
Net deferred income tax liabilities | $ | 961 |  |  | $ | 151 |
The completion of the Parkland transaction significantly increased the deferred tax assets (liabilities). The table below provides a rollforward of the net deferred income tax liability as follows:
| December 31, 2025 |  | December 31, 2024
Net deferred income tax liability, beginning of year | $ | (151) |  |  | $ | (166) |
Acquired via Parkland Acquisition | (755) |  |  | — |
Acquired via NuStar Acquisition | — |  |  | (3) |
Tax accrual | (55) |  |  | 18 |
Net deferred income tax liability, end of year | $ | (961) |  |  | $ | (151) |
Schedule of Unrecognized Tax Benefits Roll Forward | The following table sets forth the changes in unrecognized tax benefits:
| December 31, 2025 |  | December 31, 2024
Balance at beginning of year | $ | 11 |  |  | $ | 11 |
Reduction attributable to tax positions taken in prior years | (8) |  |  | — |
Balance at end of year | $ | 3 |  |  | $ | 11 |
As of December 31, 2025, we h ad $3 million ($2 million after federal income tax benefits) related to tax positions which, if recognized, would impact our effective tax rate. During 2025, the Partnership recognized an $8 million tax benefit associated with certain prior tax positions that previously did not meet the criteria for recognition in the Partnership's consolidate d financial statements.

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