XML 34 R16.htm IDEA: XBRL DOCUMENT
v3.22.2

Segment Data | 3 Months Ended
--- | ---
Mar. 31, 2022
Segment Reporting [Abstract] |
Segment Data | Segment Data We aggregate our operating segments into three reportable segments: (i) pipelines and transportation; (ii) wholesale marketing and terminalling; and (iii) investment in pipeline joint ventures. Our operating segments adhere to the accounting policies used for our consolidated financial statements. Our operating segments are managed separately because each segment requires different industry knowledge, technology and marketing strategies. Decisions concerning the allocation of resources and assessment of operating performance are made based on this segmentation. Management measures the operating performance of each of its reportable segments based on segment contribution margin, with the exception of investments in pipeline joint ventures segment, which is measured based on net income. Segment contribution margin is defined as net revenues less cost of materials and other and operating expenses, excluding depreciation and amortization. The following is a summary of business segment operating performance as measured by contribution margin, with the exception of investments in pipeline joint ventures segment, which is measured based on net income, for the periods indicated (in thousands):
(in thousands) |  |  | Three Months Ended March 31,
|  |  |  |  | 2022 |  | 2021
Pipelines and Transportation |  |  |  |  |  |  |
Net revenues: |  |  |  |  |  |  |
Affiliate |  |  |  |  | $ | 71,023 |  |  | $ | 63,048 |
Third party |  |  |  |  | 4,782 |  |  | 1,927 |
Total pipelines and transportation |  |  |  |  | 75,805 |  |  | 64,975 |
Cost of materials and other |  |  |  |  | 19,602 |  |  | 13,079 |
Operating expenses (excluding depreciation and amortization) |  |  |  |  | 12,958 |  |  | 10,172 |
Segment contribution margin |  |  |  |  | $ | 43,245 |  |  | $ | 41,724 |
Capital spending (1) |  |  |  |  | $ | 8,149 |  |  | $ | 5,845 |
Wholesale Marketing and Terminalling |  |  |  |  |  |  |
Net revenues: |  |  |  |  |  |  |
Affiliate (2) |  |  |  |  | $ | 52,731 |  |  | $ | 33,146 |
Third party |  |  |  |  | 78,045 |  |  | 54,792 |
Total wholesale marketing and terminalling |  |  |  |  | 130,776 |  |  | 87,938 |
Cost of materials and other |  |  |  |  | 106,592 |  |  | 68,092 |
Operating expenses (excluding depreciation and amortization) |  |  |  |  | 5,149 |  |  | 4,639 |
Segment contribution margin |  |  |  |  | $ | 19,035 |  |  | $ | 15,207 |
Capital spending (1) |  |  |  |  | $ | 937 |  |  | $ | 1,954 |
Investments in Pipeline Joint Ventures |  |  |  |  |  |  |
Income from equity method investments |  |  |  |  | $ | (7,026) |  |  | $ | (4,049) |
Equity method investments contributions |  |  |  |  | $ | — |  |  | $ | (1,379) |
Consolidated |  |  |  |  |  |  |
Net revenues: |  |  |  |  |  |  |
Affiliate |  |  |  |  | $ | 123,754 |  |  | $ | 96,194 |
Third party |  |  |  |  | 82,827 |  |  | 56,719 |
Total Consolidated |  |  |  |  | 206,581 |  |  | 152,913 |
Cost of materials and other |  |  |  |  | 126,194 |  |  | 81,171 |
Operating expenses (excluding depreciation and amortization presented below) |  |  |  |  | 18,107 |  |  | 14,811 |
Contribution margin |  |  |  |  | 62,280 |  |  | 56,931 |
General and administrative expenses |  |  |  |  | 5,095 |  |  | 4,105 |
Depreciation and amortization |  |  |  |  | 10,335 |  |  | 10,739 |
Other operating expense (income), net |  |  |  |  | 12 |  |  | (83) |
Operating income |  |  |  |  | 46,838 |  |  | 42,170 |
Interest expense, net |  |  |  |  | 14,250 |  |  | 9,737 |
Income from equity method investments |  |  |  |  | (7,026) |  |  | (4,049) |
Other (income) expense, net |  |  |  |  | (1) |  |  | 31 |
Total non-operating expenses, net |  |  |  |  | 7,223 |  |  | 5,719 |
Income before income tax expense |  |  |  |  | 39,615 |  |  | 36,451 |
Income tax expense |  |  |  |  | 101 |  |  | 184 |
Net income attributable to partners |  |  |  |  | $ | 39,514 |  |  | $ | 36,267 |
Capital spending (1) |  |  |  |  | $ | 9,086 |  |  | $ | 7,799 |
(1) There were no capital contributions to equity method investments for the three months ended March 31, 2022. Capital spending for the three months ended March 31, 2021 excludes contributions to equity method investments in the amount of $1.4 million. (2) Affiliate revenue for the wholesale marketing and terminalling segment is presented net of amortization expense related to a customer contract intangible asset. See Note 3 for additional information. The following table summarizes the total assets for each segment as of March 31, 2022 and December 31, 2021 (in thousands). Assets for each segment include property, plant and equipment, equity method investments, intangible assets and inventory.
| March 31, 2022 |  | December 31, 2021
Pipelines and transportation | $ | 455,145 |  |  | $ | 452,690 |
Wholesale marketing and terminalling | 205,686 |  |  | 211,723 |
Investments in pipeline joint ventures | 249,893 |  |  | 250,030 |
Other (1) | 24,542 |  |  | 20,628 |
Total assets | 935,266 |  |  | $ | 935,071 |
(1) Other includes cash and cash equivalents and related party receivables and other assets which are recorded at the corporate level.
Property, plant and equipment, accumulated depreciation and depreciation expense for the pipelines and transportation and wholesale marketing and terminalling reportable segments as of and for the three months ended March 31, 2022 were as follows (in thousands):
| Pipelines and Transportation |  | Wholesale Marketing and Terminalling |  | Consolidated
Property, plant and equipment | $ | 604,323 |  |  | $ | 120,598 |  |  | $ | 724,921 |
Less: accumulated depreciation | (213,750) |  |  | (62,837) |  |  | (276,587) |
Property, plant and equipment, net | $ | 390,573 |  |  | $ | 57,761 |  |  | $ | 448,334 |
Depreciation expense for the three months ended March 31, 2022 | $ | 7,937 |  |  | $ | 2,398 |  |  | $ | 10,335 |
In accordance with ASC 360, Property, Plant & Equipment, we evaluate the realizability of property, plant and equipment as events occur that might indicate potential impairment. There were no indicators of impairment of our property, plant and equipment as of March 31, 2022.

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

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration