XML 43 R18.htm IDEA: XBRL DOCUMENT
v3.19.2

Equity Method Investments | 6 Months Ended
--- | ---
Jun. 30, 2019
Equity Method Investments and Joint Ventures [Abstract] |
Equity Method Investments | Equity Method Investments In May 2019, the Partnership, through its wholly owned indirect subsidiary DKL Pipeline, LLC (“DKL Pipeline”), entered into a Contribution and Subscription Agreement (the “Contribution Agreement”) with Plains Pipeline, L.P. (“Plains”) and Red River Pipeline Company LLC (“Red River”). Pursuant to the Contribution Agreement, DKL Pipeline contributed $124.7 million, substantially all of which was financed by borrowings under the DKL Credit Facility, to Red River in exchange for a 33% membership interest in Red River and DKL Pipeline’s admission as a member of Red River ("Red River Pipeline Joint Venture"). Red River owns a 16-inch crude oil pipeline running from Cushing, Oklahoma to Longview, Texas, with an expansion project planned to increase the pipeline capacity, which is expected to be completed during the first half of 2020. We contributed an additional $3.5 million related to such expansion project in May 2019. Summarized unaudited financial information for Red River on a 100% basis is shown below (in thousands):
| June 30, 2019 |  | December 31, 2018
Current Assets | $ | 8,783 |  |  | $ | 6,594 |
Non-current Assets | $ | 375,416 |  |  | $ | 375,618 |
Current liabilities | $ | 3,319 |  |  | $ | 4,945 |
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
Revenues | $ | 14,391 |  |  | $ | 10,112 |  |  | $ | 26,017 |  |  | $ | 19,190 |
Gross profit | $ | 9,191 |  |  | $ | 5,064 |  |  | $ | 14,466 |  |  | $ | 9,348 |
Net income | $ | 8,942 |  |  | $ | 4,628 |  |  | $ | 13,652 |  |  | $ | 8,513 |
We have two joint ventures that have constructed separate crude oil pipeline systems and related ancillary assets, which are serving third parties and subsidiaries of Delek Holdings. We own a 50% membership interest in the entity formed with an affiliate of Plains All American Pipeline, L.P. ("CP LLC") to operate one of these pipeline systems and a 33% membership interest in the entity formed with Rangeland Energy II, LLC ("Rangeland Energy") to operate the other pipeline system. During 2018, Rangeland Energy was acquired by Andeavor and the legal entity in which we have an equity investment became Andeavor Logistics RIO Pipeline LLC ("Andeavor Logistics"). Combined summarized unaudited financial information for these two equity method investees on a 100% basis is shown below (in thousands):
| June 30, 2019 |  | December 31, 2018
Current assets | $ | 23,031 |  |  | $ | 15,450 |
Non-current assets | $ | 255,690 |  |  | $ | 240,852 |
Current liabilities | $ | 8,103 |  |  | $ | 4,362 |
Non-current liabilities | $ | 11 |  |  | $ | — |
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
Revenues | $ | 10,077 |  |  | $ | 9,886 |  |  | $ | 19,191 |  |  | $ | 17,876 |
Gross profit | $ | 5,688 |  |  | $ | 5,245 |  |  | $ | 10,584 |  |  | $ | 8,479 |
Net Income | $ | 5,249 |  |  | $ | 4,800 |  |  | $ | 9,666 |  |  | $ | 7,512 |
The Partnership's investments in these three entities were financed through a combination of cash from operations and borrowings under the DKL Credit Facility. As of June 30, 2019 and December 31, 2018, the Partnership's investment balance in these joint ventures was $241.6 million and $104.8 million, respectively. We do not consolidate any part of the assets or liabilities or operating results of our equity method investees. Our share of net income or loss of the investees will increase or decrease, as applicable, the carrying value of our investments in unconsolidated affiliates. With respect to our equity method investments, we determined that these entities do not represent variable interest entities and consolidation is not required. We have the ability to exercise significant influence over each of these joint ventures through our participation in the management committees, which make all significant decisions. However, since all significant decisions require the consent of the other investor(s) without regard to economic interest, we have determined that we have joint control and have applied the equity method of accounting. Our investment in these joint ventures is reflected in our pipelines and transportation segment.

X
- References No definition available. + Details
Name: | us-gaap_EquityMethodInvestmentsAndJointVenturesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration