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Leases (Tables) | 12 Months Ended
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Dec. 31, 2025
Leases [Abstract] |
Lease, Cost | The components of lease cost are as follows (in thousands) (1):
|  |  | Year Ended December 31,
|  |  |  |  | 2025 |  | 2024 |  | 2023
Components of lease costs |  |  |  |  |  |  |  |  |
Operating lease cost |  |  |  |  | $ | 8,610 |  |  | $ | 10,370 |  |  | $ | 11,533 |
Finance lease cost: (1) |  |  |  |  |  |  |  |  |
Amortization of ROU assets |  |  |  |  | 5,637 |  |  | — |  |  | — |
Interest on lease liabilities |  |  |  |  | 1,491 |  |  | — |  |  | — |
Total finance lease cost |  |  |  |  | 7,128 |  |  | — |  |  | — |
Short-term lease cost |  |  |  |  | 6,691 |  |  | 7,359 |  |  | 5,031 |
Variable lease cost |  |  |  |  | 905 |  |  | 1,261 |  |  | 3,826 |
Total lease cost |  |  |  |  | $ | 23,334 |  |  | $ | 18,990 |  |  | $ | 20,390 |
(1) An immaterial amount of finance lease costs was included in operating lease costs during the years ended December 31, 2024 and 2023.
Supplemental balance sheet information related to leases is as follows: |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  | Year Ended December 31,
|  |  |  |  |  |  | 2025 |  | 2024
Weighted-average remaining lease term (years) for operating leases |  |  |  |  |  |  | 3.5 |  | 3.4
Weighted-average discount rate (1) operating leases |  |  |  |  |  |  | 7.5 | % |  | 7.4 | %
Weighted-average remaining lease term (years) for finance lease |  |  |  |  |  |  | 3.4 |  | 3.5
Weighted-average discount rate (1) finance lease |  |  |  |  |  |  | 7.5 | % |  | 8.4 | %
(1) Our discount rate is primarily based on our incremental borrowing rate in accordance with ASC 842. |  |  |  |  |  |  |  |  |
Finance Lease, Liability, to be Paid, Maturity | Maturities of lease liabilities as of December 31, 2025 are as follows (in thousands):
Year Ended December 31, | Operating |  | Finance
2026 | $ | 3,384 |  |  | $ | 10,108 |
2027 | 1,978 |  |  | 9,941 |
2028 | 902 |  |  | 6,892 |
2029 | 232 |  |  | 4,179 |
2030 | 124 |  |  | 1,155 |
2031 and thereafter | 851 |  |  | — |
Total lease payments | 7,471 |  |  | 32,275 |
Less: present value discount | 893 |  |  | 3,676 |
Lease liabilities | $ | 6,578 |  |  | $ | 28,599 |
Lessee, Operating Lease, Liability, to be Paid, Maturity | Maturities of lease liabilities as of December 31, 2025 are as follows (in thousands):
Year Ended December 31, | Operating |  | Finance
2026 | $ | 3,384 |  |  | $ | 10,108 |
2027 | 1,978 |  |  | 9,941 |
2028 | 902 |  |  | 6,892 |
2029 | 232 |  |  | 4,179 |
2030 | 124 |  |  | 1,155 |
2031 and thereafter | 851 |  |  | — |
Total lease payments | 7,471 |  |  | 32,275 |
Less: present value discount | 893 |  |  | 3,676 |
Lease liabilities | $ | 6,578 |  |  | $ | 28,599 |
Sales-type Lease, Lease Income | Lease income included in the consolidated statements of income and comprehensive income was as follows:
|  | Year Ended December 31, |  |
(in thousands) |  |  | 2025 | 2024 | 2023 |  |
Operating leases: |  |  |  |  |  |  |
Lease revenue |  |  | $ | 200,180 |  | $ | 268,843 |  | $ | 311,096 |  |  |
Sales-type leases: |  |  |  |  |  |  |
Interest income (Sales-type rental revenue-fixed minimum) |  |  | 112,456 |  | 47,709 |  | — |  |  |
Lease revenue (Revenue from variable lease payments) |  |  | 15,708 |  | 7,673 |  | — |  |  |
Sales-type lease income |  |  | $ | 128,164 |  | $ | 55,382 |  | $ | — |  |  |
The following presents the consolidated financial statement impact of sales-type leases on commencement or modification date for the year ended December 31, 2024. These transactions are non-cash transactions. We did not have any sales-type leases that commenced during the year ended December 31, 2025. The amount recognized on commencement date was recorded in contributions in the consolidated statements of partners' equity (deficit), given the underlying agreements are between entities under common control.
|  |  | Year Ended December 31,
(in thousands) |  |  |  |  |  | 2024
Lease receivables |  |  |  |  |  | $ | 217,263 |
Unguaranteed residual assets |  |  |  |  |  | 10,573 |
Property, plant and equipment, net |  |  |  |  |  | (108,143) |
Amount recognized on commencement date |  |  |  |  |  | $ | 119,693 |
Schedule of Lease Payments to be Received | The following is a schedule of annual undiscounted minimum future lease cash receipts on the non-cancelable operating leases as of December 31, 2025 (in thousands):
2026 | $ | 50,331 |
2027 | 38,240 |
2028 | 7,680 |
2029 | 1,567 |
2030 | 1,567 |
2031 and thereafter | 784 |
Total minimum future lease revenue | $ | 100,169 |
Sales-Type and Direct Financing Leases, Payment to be Received, Maturity | Annual future minimum undiscounted lease receipts under our sales-type leases were as follows as of December 31, 2025 (in thousands):
2026 | $ | 108,927 |
2027 | 78,858 |
2028 | 78,858 |
2029 | 78,858 |
2030 | 78,858 |
2031 and thereafter | 183,905 |
Total minimum future lease revenue | 608,264 |
Less: Imputed interest | 402,243 |
Lease receivable | $ | 206,021 |
The components of our aggregate net investment in sales-type leases are as follows:
| Year Ended December 31,
| 2025 |  | 2024
Lease receivable | $ | 206,021 |  |  | $ | 203,803 |
Less: Current lease receivables (1) | 36,362 |  |  | 22,783 |
Long-term lease receivables | 169,659 |  |  | 181,020 |
Unguaranteed residual assets (noncurrent) | 15,997 |  |  | 12,106 |
Net lease investment - affiliate | $ | 185,656 |  |  | $ | 193,126 |
(1) Presented in Lease receivable - affiliate, in the consolidated balance sheets.
Property, Plant, and Equipment, Lessor Asset under Operating Lease | The following table summarized our investment in assets held under operating lease by major classes (in thousands):
| December 31,
| 2025 |  | 2024
Land | $ | 10,995 |  |  | $ | 11,643 |
Building and building improvements | 22 |  |  | 387 |
Pipelines, tanks and terminals | 240,822 |  |  | 419,528 |
Other equipment | 812 |  |  | 2,229 |
Property, plant and equipment | 252,651 |  |  | 433,787 |
Less: accumulated depreciation | (103,897) |  |  | (143,961) |
Property, plant and equipment, net | $ | 148,754 |  |  | $ | 289,826 |

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- Definition Tabular disclosure of lessee's lease cost. Includes, but is not limited to, interest expense for finance lease, amortization of right-of-use asset for finance lease, operating lease cost, short-term lease cost, variable lease cost and sublease income. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org/1943274/2147478964/842-20-50-4 + Details
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- Definition Tabular disclosure of maturity of undiscounted cash flows to be received on annual basis for sales-type and direct financing leases receivable. Includes, but is not limited to, reconciliation to lease receivable recognized in statement of financial position. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479773/842-30-50-10 + Details
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