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Leases (Tables)

12 Months Ended

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

X

- Definition

Tabular disclosure of undiscounted cash flows of finance lease liability. Includes, but is not limited to, reconciliation of undiscounted cash flows to finance lease liability recognized in statement of financial position.

+ References

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-SubTopic 20
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-Section 50
-Paragraph 6
-Publisher FASB
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+ References

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