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• | Level 1 – Inputs represent unadjusted quoted prices in active markets for identical assets or liabilities; |
• | Level 2 – Inputs include quoted prices for similar assets and liabilities in active markets that are either directly or indirectly observable; and |
• | Level 3 – Inputs are unobservable and considered significant to fair value measurement. |
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Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(in thousands) | |||||||||||
Revenues | |||||||||||
Total revenues | $ | 11,495 | $ | 429,784 | $ | 967,480 | |||||
Costs and Expenses | |||||||||||
Costs of sales | 11,687 | 426,886 | 961,428 | ||||||||
Direct operating expenses | 203 | 2,269 | 2,866 | ||||||||
Loss on impairment of goodwill and assets held for sale | — | 12,909 | — | ||||||||
Depreciation, amortization and accretion | 211 | 2,281 | 2,258 | ||||||||
(Gain) loss on sale of assets, net | (114 | ) | 119 | 229 | |||||||
Total expenses | 11,987 | 444,464 | 966,781 | ||||||||
Operating (loss) income | (492 | ) | (14,680 | ) | 699 | ||||||
Other income (expense) | (47 | ) | (271 | ) | (366 | ) | |||||
(Loss) income from discontinued operations before income tax expense | (539 | ) | (14,951 | ) | 333 | ||||||
Income tax expense | — | — | — | ||||||||
Net (loss) income from discontinued operations | $ | (539 | ) | $ | (14,951 | ) | $ | 333 |
Year Ended December 31, 2014 | |||
(in thousands) | |||
Total revenues | $ | 7,865 | |
Net loss from discontinued operations, including loss on disposal of $7,288 | (9,608 | ) |
Years Ended December 31, | |||||||
2015 | 2014 | ||||||
(in thousands) | |||||||
Total revenues | $ | 74 | $ | 474 | |||
Loss from discontinued operations, net of tax | (80 | ) | (611 | ) |
|
|
December 31, | ||||||||
2016 | 2015 | |||||||
(in thousands) | ||||||||
Crude oil | $ | 1,216 | $ | 486 | ||||
NGLs | 3,482 | 2,638 | ||||||
Refined products | 291 | 463 | ||||||
Materials, supplies and equipment | 1,787 | 1,654 | ||||||
Total inventory | $ | 6,776 | $ | 5,241 |
|
December 31, | |||||||
2016 | 2015 | ||||||
(in thousands) | |||||||
Prepaid insurance | $ | 9,702 | $ | 5,187 | |||
Insurance receivables | 2,895 | 115 | |||||
Other receivables | 2,998 | 2,688 | |||||
Due from related parties | 4,805 | 8,688 | |||||
Risk management assets | 964 | 365 | |||||
Other assets | 6,303 | 5,753 | |||||
Discontinued operations, current assets | — | 2,730 | |||||
Total other current assets | $ | 27,667 | $ | 25,526 |
|
December 31, 2016 | December 31, 2015 | |||||||
Notional Volume | Maturity | Notional Volume | Maturity | |||||
Commodity Swaps: | ||||||||
Propane Fixed Price (Gallons) | 4,364,880 | Jan 2017 - Nov 2018 | 8,614,631 | Jan 2016 - July 2017 | ||||
Crude Oil Fixed Price (Barrels) | — | — | (93,000) | Jan 2016 | ||||
Crude Oil Basis (Barrels) | 180,000 | Jan 2017 - Mar 2017 | — | — |
Notional Amount | Term | Fair Value | ||
(in thousands) | (in thousands) | |||
$200,000 | January 3, 2017 thru September 3, 2019 | $ | 1,912 | |
$100,000 | January 1, 2017 thru December 31, 2017 | (71 | ) | |
$100,000 | January 1, 2018 thru January 31, 2019 | 226 | ||
$100,000 | January 1, 2018 thru December 31, 2021 | 3,090 | ||
$150,000 | January 1, 2018 thru December 31, 2022 | 5,219 | ||
$ | 10,376 |
Gross Risk Management Position | Netting Adjustment | Net Risk Management Position | ||||||||||||||||||||||
Balance Sheet Classification | December 31, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Other current assets | $ | 1,036 | $ | 457 | $ | (72 | ) | $ | (92 | ) | $ | 964 | $ | 365 | ||||||||||
Risk management assets - long term | 10,665 | — | (1 | ) | — | 10,664 | — | |||||||||||||||||
Total assets | $ | 11,701 | $ | 457 | $ | (73 | ) | $ | (92 | ) | $ | 11,628 | $ | 365 | ||||||||||
Accrued expenses and other current liabilities | $ | (253 | ) | $ | (450 | ) | $ | 72 | $ | 92 | $ | (181 | ) | $ | (358 | ) | ||||||||
Other liabilities | (1 | ) | (24 | ) | 1 | — | — | (24 | ) | |||||||||||||||
Total liabilities | $ | (254 | ) | $ | (474 | ) | $ | 73 | $ | 92 | $ | (181 | ) | $ | (382 | ) |
Realized | Unrealized | |||||||
(in thousands) | ||||||||
2016 | ||||||||
Losses on commodity derivatives, net | $ | (1,480 | ) | $ | 1,025 | |||
Interest expense | (144 | ) | 10,375 | |||||
Direct operating expenses | (966 | ) | — | |||||
Total | $ | (2,590 | ) | $ | 11,400 | |||
2015 | ||||||||
Losses on commodity derivatives, net | $ | (13,209 | ) | $ | 11,477 | |||
Interest expense | (425 | ) | 373 | |||||
Direct operating expenses | (913 | ) | — | |||||
Total | $ | (14,547 | ) | $ | 11,850 | |||
2014 | ||||||||
Losses on commodity derivatives, net | $ | (337 | ) | $ | (12,334 | ) | ||
Interest expense | (707 | ) | 284 | |||||
Direct operating expenses | (1,035 | ) | — | |||||
Total | $ | (2,079 | ) | $ | (12,050 | ) |
|
Useful Life (in years) | December 31, 2016 | December 31, 2015 | |||||||
(in thousands) | |||||||||
Land | N/A | $ | 23,520 | $ | 18,902 | ||||
Construction in progress | N/A | 131,448 | 58,146 | ||||||
Transportation Equipment | 5 to 15 | 44,060 | 46,582 | ||||||
Buildings and improvements | 4 to 40 | 24,225 | 22,398 | ||||||
Processing and treating plants | 8 to 40 | 120,977 | 102,111 | ||||||
Pipelines and compressors | 3 to 40 | 804,815 | 775,486 | ||||||
Storage | 3 to 40 | 210,579 | 210,208 | ||||||
Equipment | 5 to 20 | 102,409 | 78,131 | ||||||
Total property, plant and equipment | 1,462,033 | 1,311,964 | |||||||
Less accumulated depreciation | (317,030 | ) | (240,450 | ) | |||||
Property, plant and equipment, net | $ | 1,145,003 | $ | 1,071,514 |
|
Gas Gathering and Processing Services | Liquid Pipelines and Services | Terminalling Services | Propane Marketing Services | Total | |||||||||||
(in thousands) | |||||||||||||||
Balance at January 1, 2015 | $ | 125,974 | $ | 137,243 | $ | 88,466 | $ | 31,335 | $ | 383,018 | |||||
Goodwill acquired during the year | — | — | — | 5,806 | 5,806 | ||||||||||
Return of purchase price | (7,382 | ) | — | — | — | (7,382 | ) | ||||||||
Impairment charges | (118,592 | ) | (23,574 | ) | — | (6,322 | ) | (148,488 | ) | ||||||
Balance at December 31, 2015 | — | 113,669 | 88,466 | 30,819 | 232,954 | ||||||||||
Impairment charges | — | — | (15,456 | ) | (15,456 | ) | |||||||||
Balance at December 31, 2016 | $ | — | $ | 113,669 | $ | 88,466 | $ | 15,363 | $ | 217,498 |
December 31, | |||||||
2016 | 2015 | ||||||
(in thousands) | |||||||
Gross carrying amount: | |||||||
Customer relationships | $ | 133,503 | $ | 136,030 | |||
Customer contracts | 95,594 | 95,594 | |||||
Dedicated acreage | 53,350 | 53,350 | |||||
Collaborative arrangements | 11,884 | 11,884 | |||||
Noncompete agreements | 3,423 | 3,575 | |||||
Other | 751 | 751 | |||||
$ | 298,505 | $ | 301,184 | ||||
Accumulated amortization: | |||||||
Customer relationships | $ | (31,471 | ) | $ | (23,885 | ) | |
Customer contracts | (33,414 | ) | (24,538 | ) | |||
Dedicated acreage | (4,439 | ) | (2,661 | ) | |||
Collaborative arrangements | (601 | ) | — | ||||
Noncompete agreements | (3,086 | ) | (2,664 | ) | |||
Other | (211 | ) | (155 | ) | |||
$ | (73,222 | ) | $ | (53,903 | ) | ||
Net carrying amount: | |||||||
Customer relationships | $ | 102,032 | $ | 112,145 | |||
Customer contracts | 62,180 | 71,056 | |||||
Dedicated acreage | 48,911 | 50,689 | |||||
Collaborative arrangements | 11,283 | 11,884 | |||||
Noncompete agreements | 337 | 911 | |||||
Other | 540 | 596 | |||||
$ | 225,283 | $ | 247,281 |
|
Delta House (1) | Emerald Transactions | |||||||||||||||||||||||||||||||
FPS | OGL | Destin | Tri-States | Okeanos | Wilprise | MPOG | Total | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Ownership % at December 31, 2016 | 20.1 | % | 20.1 | % | 49.7 | % | 16.7 | % | 66.7 | % | 25.3 | % | 66.7 | % | ||||||||||||||||||
Balance at December 31, 2013 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Investments | — | — | — | — | — | — | 12,000 | 12,000 | ||||||||||||||||||||||||
Earnings in unconsolidated affiliates | — | — | — | — | — | — | 348 | 348 | ||||||||||||||||||||||||
Contributions | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Distributions | — | — | — | — | — | — | (1,980 | ) | (1,980 | ) | ||||||||||||||||||||||
Balance at December 31, 2014 | — | — | — | — | — | — | 10,368 | 10,368 | ||||||||||||||||||||||||
Investments | 40,559 | 25,144 | — | — | — | — | — | 65,703 | ||||||||||||||||||||||||
Earnings in unconsolidated affiliates | 5,457 | 2,013 | — | — | — | — | 731 | 8,201 | ||||||||||||||||||||||||
Contributions | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Distributions | (12,551 | ) | (4,097 | ) | — | — | — | — | (3,920 | ) | (20,568 | ) | ||||||||||||||||||||
Balance at December 31, 2015 | 33,465 | 23,060 | — | — | — | — | 7,179 | 63,704 | ||||||||||||||||||||||||
Investments | 55,461 | 3,255 | 122,830 | 56,681 | 27,451 | 5,064 | — | 270,742 | ||||||||||||||||||||||||
Earnings in unconsolidated affiliates | 21,022 | 9,260 | 3,946 | 1,633 | 3,642 | 437 | 218 | 40,158 | ||||||||||||||||||||||||
Contributions | — | — | — | — | — | — | 429 | 429 | ||||||||||||||||||||||||
Distributions | (45,465 | ) | (10,125 | ) | (15,894 | ) | (3,292 | ) | (4,034 | ) | (557 | ) | (3,679 | ) | (83,046 | ) | ||||||||||||||||
Balance at December 31, 2016 | $ | 64,483 | $ | 25,450 | $ | 110,882 | $ | 55,022 | $ | 27,059 | $ | 4,944 | $ | 4,147 | $ | 291,987 |
December 31, | ||||||||
2016 | 2015 | |||||||
(in thousands) | ||||||||
Current assets | $ | 120,167 | $ | 182,264 | ||||
Non-current assets | 1,369,492 | 1,418,299 | ||||||
Current liabilities | 133,085 | 146,490 | ||||||
Non-current liabilities | 541,312 | 419,215 |
Years ended December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
(in thousands) | ||||||||||||
Revenue | $ | 370,263 | $ | 235,041 | $ | 102,290 | ||||||
Operating expenses | 99,084 | 90,453 | 72,775 | |||||||||
Net income | 261,200 | 135,083 | 28,173 |
Emerald Transactions | |||||||||||||||
Destin | Tri-States | Okeanos | Wilprise | ||||||||||||
Revenues | $ | 34,360 | $ | 25,557 | $ | 10,453 | $ | 3,306 | |||||||
Net income | 8,272 | 15,983 | 1,911 | 2,028 | |||||||||||
Partnership ownership % | 49.7 | % | 16.7 | % | 66.7 | % | 25.3 | % | |||||||
Partnership share of investee net income | 4,109 | 2,664 | 1,274 | 513 | |||||||||||
Basis difference amortization | (163 | ) | (1,031 | ) | 2,368 | (76 | ) | ||||||||
Earnings in unconsolidated affiliates | 3,946 | 1,633 | 3,642 | 437 |
|
December 31, | ||||||||
2016 | 2015 | |||||||
Capital expenditures | $ | 14,499 | $ | 7,780 | ||||
Employee compensation | 10,804 | 7,870 | ||||||
Convertible preferred unit distributions | 7,103 | — | ||||||
Current portion of asset retirement obligation | 6,499 | 6,822 | ||||||
Accrued interest | 5,743 | 1,838 | ||||||
Additional Blackwater acquisition consideration | 5,000 | — | ||||||
Due to related parties | 4,072 | 3,894 | ||||||
Royalties payable | 3,926 | 4,163 | ||||||
Transaction costs | 3,000 | — | ||||||
Customer deposits | 3,080 | 3,742 | ||||||
Deferred financing costs | 2,743 | — | ||||||
Taxes payable | 1,688 | 1,563 | ||||||
Recoverable gas costs | 1,126 | 1,337 | ||||||
Gas imbalances payable | 1,098 | 413 | ||||||
Other | 10,903 | 7,329 | ||||||
Total accrued expenses and other current liabilities | $ | 81,284 | $ | 46,751 |
|
Years Ended December 31, | |||||||
2016 | 2015 | ||||||
Beginning balance | $ | 35,371 | $ | 34,645 | |||
Liabilities assumed (1) | 14,542 | — | |||||
Revision in estimate | 230 | — | |||||
Expenditures | (858 | ) | (91 | ) | |||
Accretion expense | 1,577 | 817 | |||||
Ending balance | 50,862 | 35,371 | |||||
Less: current portion | 6,499 | 6,822 | |||||
Noncurrent asset retirement obligation | $ | 44,363 | $ | 28,549 |
|
Series A | Series C | Series D | |||||||||||||||
Units | $ | Units | $ | Units | $ | ||||||||||||
(in thousands) | |||||||||||||||||
December 31, 2013 | 5,279 | $ | 94,811 | — | $ | — | — | $ | — | ||||||||
Issuance of units | — | — | — | — | — | — | |||||||||||
Paid in kind unit distributions | 466 | 13,154 | — | — | — | — | |||||||||||
December 31, 2014 | 5,745 | 107,965 | — | — | — | — | |||||||||||
Issuance of units | 2,571 | 44,769 | — | — | — | — | |||||||||||
Paid in kind unit distributions | 894 | 16,978 | — | — | — | — | |||||||||||
December 31, 2015 | 9,210 | 169,712 | — | — | — | — | |||||||||||
Issuance of units | — | — | 8,571 | 115,457 | 2,333 | 34,475 | |||||||||||
Paid in kind unit distributions | 897 | 11,674 | 221 | 2,772 | — | — | |||||||||||
December 31, 2016 | 10,107 | $ | 181,386 | 8,792 | $ | 118,229 | 2,333 | $ | 34,475 |
|
AMID | JPE | 8.5% Senior | 3.77% Senior | ||||||||||||||||||||
Revolving Credit | Revolving Credit | Notes due | Notes due | Other | |||||||||||||||||||
Agreement (1) | Agreement (1) | 2021 | 2031 | Debt | Total | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Balance | $ | 711,250 | $ | 177,000 | $ | 300,000 | $ | 60,000 | $ | 3,809 | $ | 1,252,059 | |||||||||||
Less unamortized deferred financing costs and discount | — | — | (8,691 | ) | (2,345 | ) | — | (11,036 | ) | ||||||||||||||
Subtotal | 711,250 | 177,000 | 291,309 | 57,655 | 3,809 | 1,241,023 | |||||||||||||||||
Less current portion | — | — | — | (1,676 | ) | (3,809 | ) | (5,485 | ) | ||||||||||||||
Non-current portion | $ | 711,250 | $ | 177,000 | $ | 291,309 | $ | 55,979 | $ | — | $ | 1,235,538 |
AMID | JPE | ||||||||||||||
Revolving Credit | Revolving Credit | Other | |||||||||||||
Agreement (1) | Agreement (1) | Debt | Total | ||||||||||||
(in thousands) | |||||||||||||||
Balance | $ | 525,100 | $ | 162,000 | $ | 3,639 | $ | 690,739 | |||||||
Less current portion | — | — | (2,899 | ) | (2,899 | ) | |||||||||
Non-current portion | $ | 525,100 | $ | 162,000 | $ | 740 | $ | 687,840 |
• | at least 65% of the aggregate principal amount of the 8.50% Senior Notes remains outstanding immediately after such redemption (excluding 8.50% Senior Notes held by the Partnership and its subsidiaries); and |
• | the redemption occurs within 180 days of the closing of each such equity offering. |
• | the principal amount thereof, plus |
• | the make whole premium (as defined in the Indenture) at the redemption date, plus |
• | accrued and unpaid interest, to the redemption date. |
Year | Percentage |
2018 | 104.250% |
2019 | 102.125% |
2020 and thereafter | 100.000% |
|
General Partner Interest | Limited Partner Interest | Series B Convertible Units | JPE Series D Units | |||||||||
Balances at December 31, 2013 | 185 | 13,394 | — | — | ||||||||
Initial issuance of Series B Units | — | — | 1,168 | |||||||||
Issuance of Series B Units | — | — | 87 | |||||||||
Issuance of JPE Series D Units | — | — | — | 1,008 | ||||||||
Redemption of JPE Series D Units | — | — | — | (1,008 | ) | |||||||
LTIP vesting | — | 80 | — | |||||||||
Issuance of GP units | 207 | — | — | |||||||||
Exercise of warrants | — | 300 | — | |||||||||
Issuance of common units in JP Development transaction | — | 5,841 | — | |||||||||
Issuance of common units | — | 23,025 | — | |||||||||
Balances at December 31, 2014 | 392 | 42,640 | 1,255 | — | ||||||||
Issuance of Series B Units | — | — | 95 | — | ||||||||
LTIP vesting | — | 58 | — | — | ||||||||
Exercise of unit options | — | 152 | — | — | ||||||||
Issuance of GP units | 144 | — | — | — | ||||||||
Issuance of common units | — | 7,654 | — | — | ||||||||
Balances at December 31, 2015 | 536 | 50,504 | 1,350 | — | ||||||||
Conversion of Series B Units | — | 1,350 | (1,350 | ) | — | |||||||
Return of escrow units | — | (1,034 | ) | — | — | |||||||
LTIP vesting | — | 283 | — | — | ||||||||
Issuance of GP units | 144 | — | — | — | ||||||||
Issuance of common units | — | 248 | — | — | ||||||||
Balances at December 31, 2016 | 680 | 51,351 | — | — |
Years Ended December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Series A Units | ||||||||||||
Cash: | ||||||||||||
Paid | $ | 4,935 | $ | — | $ | 2,658 | ||||||
Accrued | 2,514 | — | — | |||||||||
Paid-in-kind units | 11,674 | 16,978 | 13,154 | |||||||||
Total | 19,123 | 16,978 | 15,812 | |||||||||
Series B Units | ||||||||||||
Paid-in-kind units | — | 1,373 | 2,220 | |||||||||
Total | — | 1,373 | 2,220 | |||||||||
Series C Units | ||||||||||||
Cash: | ||||||||||||
Paid | 3,089 | — | — | |||||||||
Accrued | 3,626 | — | — | |||||||||
Paid-in-kind units | 2,772 | — | — | |||||||||
Total | 9,487 | — | — | |||||||||
Series D Units | ||||||||||||
AMID Series D Units Accrued | 963 | — | — | |||||||||
JPE Series D Units Paid-in-kind units | — | — | 2,436 | |||||||||
Total | 963 | — | 2,436 | |||||||||
Limited Partner Units | ||||||||||||
Cash: | ||||||||||||
Paid | 101,561 | 93,622 | 114,612 | |||||||||
Accrued | — | — | — | |||||||||
Total | 101,561 | 93,622 | 114,612 | |||||||||
General Partner Units | ||||||||||||
Cash: | ||||||||||||
Paid | 2,551 | 6,789 | 2,695 | |||||||||
Accrued | — | — | — | |||||||||
Additional Blackwater acquisition consideration | 5,000 | — | — | |||||||||
Total | 7,551 | 6,789 | 2,695 | |||||||||
Summary | ||||||||||||
Cash | ||||||||||||
Paid | 112,136 | 100,411 | 119,965 | |||||||||
Accrued | 7,103 | — | — | |||||||||
Paid-in-kind units | 14,446 | 18,351 | 17,810 | |||||||||
Additional Blackwater acquisition consideration | 5,000 | — | — | |||||||||
Total | $ | 138,685 | $ | 118,762 | $ | 137,775 |
|
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Net loss from continuing operations | $ | (48,005 | ) | $ | (184,810 | ) | $ | (69,681 | ) | ||
Less: Net income (loss) attributable to noncontrolling interests | 2,766 | (13 | ) | 3,993 | |||||||
Net loss from continuing operations attributable to the Partnership | (50,771 | ) | (184,797 | ) | (73,674 | ) | |||||
Less: | |||||||||||
Distributions on Series A Units | 19,138 | 16,978 | 14,492 | ||||||||
Distributions on Series C Units | 9,487 | — | — | ||||||||
Distributions on Series D Units | 963 | — | — | ||||||||
Distributions on Series B Units | — | 1,373 | 2,220 | ||||||||
Net income (loss) from continuing operations attributable to JPE preferred units | — | — | 656 | ||||||||
Net income (loss) from continuing operations attributable to predecessor capital | — | — | (2,014 | ) | |||||||
General partner's distributions | 2,550 | 6,790 | 2,694 | ||||||||
General partner's share in undistributed loss | (1,745 | ) | (3,309 | ) | (1,510 | ) | |||||
Net loss from continuing operations attributable to Limited Partners | (81,164 | ) | (206,629 | ) | (90,212 | ) | |||||
Net loss from discontinued operations attributable to Limited Partners | (532 | ) | (15,031 | ) | (269 | ) | |||||
Net loss attributable to Limited Partners | $ | (81,696 | ) | $ | (221,660 | ) | $ | (90,481 | ) | ||
Weighted average number of common units used in computation of Limited Partners' net loss per common unit - basic and diluted | 51,176 | 45,050 | 27,524 | ||||||||
Limited Partners' net loss from continuing operations per unit (basic and diluted) | $ | (1.59 | ) | $ | (4.59 | ) | $ | (3.28 | ) | ||
Limited Partners' net loss from discontinued operations per unit (basic and diluted) | (0.01 | ) | (0.33 | ) | (0.01 | ) | |||||
Limited Partners' net loss per common unit - basic and diluted (1) | $ | (1.60 | ) | $ | (4.92 | ) | $ | (3.29 | ) |
|
Units | Weighted-Average Grant Date Fair Value Per Unit | Aggregate Intrinsic Value (1) (In thousands) | |||||||||
Outstanding units at December 2013 | 75,529 | $ | 17.62 | $ | 2,045 | ||||||
Granted | 188,946 | 20.80 | |||||||||
Forfeited | (12,009 | ) | (18.28 | ) | |||||||
Vested | (51,334 | ) | (20.89 | ) | |||||||
Outstanding units at December 2014 | 201,132 | $ | 19.85 | $ | 3,964 | ||||||
Granted | 546,329 | 12.25 | |||||||||
Forfeited | (31,298 | ) | (15.62 | ) | |||||||
Vested | (146,404 | ) | (18.47 | ) | |||||||
Outstanding units at December 2015 | 569,759 | $ | 13.15 | $ | 4,609 | ||||||
Granted | 1,374,226 | 2.14 | |||||||||
Forfeited | (411,794 | ) | (2.60 | ) | |||||||
Vested | (286,348 | ) | (12.18 | ) | |||||||
Outstanding units at December 2016 | 1,245,843 | $ | 4.72 | $ | 22,674 |
Years Ended December 31, | |||||
2016 | 2015 | ||||
Weighted average common unit price volatility | 61.1 | % | 47.0 | % | |
Expected distribution yield | 12.6 | % | 26.3 | % | |
Weighted average expected term (in years) | 4.10 | 3.5 | |||
Weighted average risk-free rate | 1.1 | % | 1.3 | % |
Units | Weighted-Average Exercise Price | Weighted-Average Grant Date Fair Value per Unit | Aggregate Intrinsic Value (1) (In thousands) | Weighted Average Remaining Contractual Life (Years) | ||||||||||||||
Outstanding at December 31, 2014 | — | $ | — | $ | — | $ | — | — | ||||||||||
Granted | 200,000 | 7.50 | 0.33 | — | — | |||||||||||||
Vested | — | — | — | — | ||||||||||||||
Forfeited | — | — | — | — | ||||||||||||||
Outstanding at December 31, 2015 | 200,000 | $ | 7.50 | $ | 0.33 | $ | 118 | 4.2 | ||||||||||
Granted | 75,000 | 13.13 | 2.65 | — | — | |||||||||||||
Vested | — | — | — | — | ||||||||||||||
Forfeited | — | — | — | — | ||||||||||||||
Outstanding at December 31, 2016 | 275,000 | $ | 9.03 | $ | 0.96 | $ | 2,522 | 5.0 |
Units | Weighted Average Grant date Fair Value | ||||||
Outstanding units at December 2014 | — | $ | — | ||||
Granted | 287,750 | 22.25 | |||||
Vested | (4,766 | ) | 22.34 | ||||
Forfeited | (56,005 | ) | 21.23 | ||||
Outstanding units at December 2015 | 226,979 | $ | 22.5 | ||||
Granted | 209,507 | 9.23 | |||||
Vested | (55,778 | ) | 19.51 | ||||
Forfeited | (67,716 | ) | 18.74 | ||||
Outstanding units at December 2016 | 312,992 | $ | 14.96 |
|
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Current income tax expense | $ | (521 | ) | $ | (648 | ) | $ | (146 | ) | ||
Deferred income tax expense | (2,057 | ) | (1,240 | ) | (711 | ) | |||||
Effective income tax rate | 5.7 | % | 1.0 | % | 1.2 | % |
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Net income (loss) before income tax expense | $ | (45,427 | ) | $ | (182,922 | ) | $ | (68,824 | ) | ||
US Federal statutory tax rate | 34 | % | 34 | % | 34 | % | |||||
Federal income tax (expense) benefit at statutory rate | 15,445 | 62,193 | 23,400 | ||||||||
Reconciling items: | |||||||||||
Partnership loss not subject to income tax (benefit) | (17,218 | ) | (63,083 | ) | (23,759 | ) | |||||
State and local tax expense | (800 | ) | (857 | ) | (459 | ) | |||||
Other | (5 | ) | (141 | ) | (39 | ) | |||||
Income tax expense | $ | (2,578 | ) | $ | (1,888 | ) | $ | (857 | ) |
December 31, | |||||||
2016 | 2015 | ||||||
Deferred tax assets: | |||||||
Net operating loss carryforwards | $ | 6,300 | $ | 7,570 | |||
Other | 577 | 493 | |||||
Total deferred tax assets | 6,877 | 8,063 | |||||
Deferred tax liabilities: | |||||||
Property, plant and equipment | (15,082 | ) | (14,236 | ) | |||
Deferred income tax liability, net | $ | (8,205 | ) | $ | (6,173 | ) |
|
Revolving Credit Agreements | 3.77% Senior Notes | 8.50% Senior Notes (1) | Asset Retirement Obligation (2) | Other | Total | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
2017 | $ | — | $ | 1,677 | $ | — | $ | 6,499 | $ | 9,869 | $ | 18,045 | ||||||||||||
2018 | — | 806 | — | — | 6,331 | 7,137 | ||||||||||||||||||
2019 | 888,250 | 2,233 | — | — | 5,079 | 895,562 | ||||||||||||||||||
2020 | — | 2,299 | — | — | 2,905 | 5,204 | ||||||||||||||||||
2021 | — | 4,430 | 300,000 | — | 2,253 | 306,683 | ||||||||||||||||||
Thereafter | — | 48,555 | — | 44,363 | 17,991 | 110,909 | ||||||||||||||||||
$ | 888,250 | $ | 60,000 | $ | 300,000 | $ | 50,862 | $ | 44,428 | $ | 1,343,540 |
|
|
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Supplemental cash flow information | |||||||||||
Interest payments, net of capitalized interest | $ | 22,303 | $ | 16,540 | $ | 13,905 | |||||
Cash paid for taxes | 530 | 450 | 108 | ||||||||
Supplemental non-cash information | |||||||||||
Increase (decrease) in accrued property, plant and equipment purchases | $ | 8,533 | $ | (21,841 | ) | $ | 35,018 | ||||
Contributions from general partner | 7,500 | 4,350 | — | ||||||||
Acquisitions partially funded by the issuance of common units | — | 3,442 | 414,396 | ||||||||
Assets acquired under capital lease | 139 | — | 177 | ||||||||
Issuance of Series C Units and Warrant in connection with the Emerald Transactions | 120,000 | — | — | ||||||||
Accrued cash distributions on convertible preferred units | 7,103 | — | — | ||||||||
Paid-in-kind distributions on convertible preferred units | 14,446 | 16,978 | 13,154 | ||||||||
Paid-in-kind distributions on Series B Units | — | 1,373 | 2,220 | ||||||||
Paid-in-kind distributions on JPE Series D units | — | — | 2,436 | ||||||||
Cancellation of escrow units | 6,817 | — | — | ||||||||
Additional Blackwater acquisition consideration | 5,000 | — | — |
|
December 31, 2016 | ||||||||||||||||||||||
Gas Gathering and Processing Services | Liquid Pipelines and Services | Natural Gas Transportation Services | Offshore Pipelines and Services | Terminalling Services | Propane Marketing Services | Total | ||||||||||||||||
(in thousands) | ||||||||||||||||||||||
Commodity sales | $ | 91,444 | $ | 304,501 | $ | 21,999 | $ | 6,812 | $ | 14,655 | $ | 129,116 | $ | 568,527 | ||||||||
Services | 22,558 | 12,146 | 18,109 | 40,502 | 50,999 | 14,536 | 158,850 | |||||||||||||||
Gains (losses) on commodity derivatives, net | (833 | ) | (341 | ) | — | (7 | ) | (436 | ) | 1,162 | (455 | ) | ||||||||||
Total Revenue | 113,169 | 316,306 | 40,108 | 47,307 | 65,218 | 144,814 | 726,922 | |||||||||||||||
Cost of sales | 63,832 | 288,496 | 21,288 | 3,049 | 11,564 | 54,794 | 443,023 | |||||||||||||||
Direct operating expenses | 33,802 | 8,383 | 5,923 | 10,945 | 10,783 | 53,536 | 123,372 | |||||||||||||||
Corporate expenses | 99,430 | |||||||||||||||||||||
Depreciation, amortization, and accretion | 106,818 | |||||||||||||||||||||
Loss on sale of assets, net | 2,870 | |||||||||||||||||||||
Loss on impairment of plant, property and equipment | 697 | |||||||||||||||||||||
Loss on impairment of goodwill | 15,456 | |||||||||||||||||||||
Interest expense | 21,469 | |||||||||||||||||||||
Earnings in unconsolidated affiliates | (40,158 | ) | ||||||||||||||||||||
Other (income) expense | (628 | ) | ||||||||||||||||||||
Income tax expense | 2,578 | |||||||||||||||||||||
Income (loss) from continuing operations | (48,005 | ) | ||||||||||||||||||||
Loss from discontinuing operations, net of tax | (539 | ) | ||||||||||||||||||||
Net income (loss) | (48,544 | ) | ||||||||||||||||||||
Net income (loss) attributable to non-controlling interest | 2,766 | |||||||||||||||||||||
Net income (loss) attributable to partnership | $ | (51,310 | ) | |||||||||||||||||||
Segment gross margin | $ | 48,245 | $ | 29,760 | $ | 18,616 | $ | 82,346 | $ | 42,872 | $ | 88,948 |
December 31, 2015 | ||||||||||||||||||||||
Gas Gathering and Processing Services | Liquid Pipelines and Services | Natural Gas Transportation Services | Offshore Pipelines and Services | Terminalling Services | Propane Marketing Services | Total | ||||||||||||||||
(in thousands) | ||||||||||||||||||||||
Commodity sales | $ | 107,680 | $ | 457,390 | $ | 23,972 | $ | 13,798 | $ | 10,343 | $ | 159,674 | $ | 772,857 | ||||||||
Services | 30,196 | 12,895 | 16,035 | 21,457 | 45,022 | 17,157 | 142,762 | |||||||||||||||
Gains (losses) on commodity derivatives, net | 1,240 | — | — | 84 | 21 | (3,077 | ) | (1,732 | ) | |||||||||||||
Total Revenue | 139,116 | 470,285 | 40,007 | 35,339 | 55,386 | 173,754 | 913,887 | |||||||||||||||
Cost of sales | 72,960 | 446,125 | 21,858 | 9,914 | 8,893 | 70,553 | 630,303 | |||||||||||||||
Direct operating expenses | 35,250 | 8,310 | 6,728 | 9,425 | 10,414 | 57,353 | 127,480 | |||||||||||||||
Corporate expenses | 77,835 | |||||||||||||||||||||
Depreciation, amortization, and accretion | 98,596 | |||||||||||||||||||||
Loss on sale of assets, net | 3,920 | |||||||||||||||||||||
Loss on impairment of goodwill | 148,488 | |||||||||||||||||||||
Interest expense | 20,120 | |||||||||||||||||||||
Earnings in unconsolidated affiliates | (8,201 | ) | ||||||||||||||||||||
Other (income) expense | (1,732 | ) | ||||||||||||||||||||
Income tax expense | 1,888 | |||||||||||||||||||||
Income (loss) from continuing operations | (184,810 | ) | ||||||||||||||||||||
Loss from discontinuing operations, net of tax | (15,031 | ) | ||||||||||||||||||||
Net income (loss) | (199,841 | ) | ||||||||||||||||||||
Net income (loss) attributable to non-controlling interest | (13 | ) | ||||||||||||||||||||
Net income (loss) attributable to partnership | $ | (199,828 | ) | |||||||||||||||||||
Segment gross margin | $ | 65,692 | $ | 24,160 | $ | 18,073 | $ | 33,613 | $ | 36,079 | $ | 91,437 |
December 31, 2014 | ||||||||||||||||||||||
Gas Gathering and Processing Services | Liquid Pipelines and Services | Natural Gas Transportation Services | Offshore Pipelines and Services | Terminalling Services | Propane Marketing Services | Total | ||||||||||||||||
(in thousands) | ||||||||||||||||||||||
Commodity sales | $ | 148,198 | $ | 470,336 | $ | 70,964 | $ | 20,044 | $ | 11,521 | $ | 188,702 | $ | 909,765 | ||||||||
Services | 15,248 | 11,548 | 12,925 | 24,426 | 41,357 | 18,194 | 123,698 | |||||||||||||||
Gains (losses) on commodity derivatives, net | 1,050 | — | — | 41 | — | (13,762 | ) | (12,671 | ) | |||||||||||||
Total Revenue | 164,496 | 481,884 | 83,889 | 44,511 | 52,878 | 193,134 | 1,020,792 | |||||||||||||||
Cost of dales | 112,719 | 459,319 | 70,100 | 15,133 | 6,859 | 125,742 | 789,872 | |||||||||||||||
Direct operating expenses | 21,197 | 5,819 | 6,975 | 11,142 | 11,525 | 52,885 | 109,543 | |||||||||||||||
Corporate expenses | 72,744 | |||||||||||||||||||||
Depreciation, amortization, and accretion | 72,527 | |||||||||||||||||||||
Loss on sale of assets, net | 5,080 | |||||||||||||||||||||
Loss on impairment of plant, property and equipment | 21,344 | |||||||||||||||||||||
Interest expense | 16,558 | |||||||||||||||||||||
Earnings in unconsolidated affiliates | (348 | ) | ||||||||||||||||||||
Other (income) expense | 662 | |||||||||||||||||||||
Loss on extinguishment of debt | 1,634 | |||||||||||||||||||||
Income tax expense | 857 | |||||||||||||||||||||
Income (loss) from continuing operations | (69,681 | ) | ||||||||||||||||||||
Loss from discontinuing operations, net of tax | (9,886 | ) | ||||||||||||||||||||
Net income (loss) | (79,567 | ) | ||||||||||||||||||||
Net income (loss) attributable to non-controlling interest | 3,993 | |||||||||||||||||||||
Net income (loss) attributable to partnership | $ | (83,560 | ) | |||||||||||||||||||
Segment gross margin | $ | 51,213 | $ | 22,564 | $ | 13,691 | $ | 29,089 | $ | 34,493 | $ | 80,083 |
December 31, | |||||||
2016 | 2015 | ||||||
Segment assets: | (in thousands) | ||||||
Gas Gathering and Processing Services | $ | 530,889 | $ | 496,014 | |||
Liquid Pipelines and Services | 422,636 | 426,854 | |||||
Natural Gas Transportation Services | 221,604 | 146,927 | |||||
Offshore Pipelines and Services | 400,193 | 190,271 | |||||
Terminalling Services | 299,534 | 291,130 | |||||
Propane Marketing Services | 140,864 | 173,558 | |||||
Other (1) | 333,601 | 27,135 | |||||
Total assets | $ | 2,349,321 | $ | 1,751,889 |
|
First Quarter | Second Quarter | Third Quarter | Fourth Quarter (2) | ||||||||||||
Year Ended December 31, 2016 | |||||||||||||||
Total revenues | $ | 143,376 | $ | 185,836 | $ | 187,659 | $ | 210,051 | |||||||
Gross margin (1) | 74,045 | 81,072 | 76,427 | 79,243 | |||||||||||
Operating loss | (8,401 | ) | (10,368 | ) | (12,125 | ) | (33,850 | ) | |||||||
Net income (loss) | (10,603 | ) | (9,481 | ) | (7,797 | ) | (20,663 | ) | |||||||
Net income (loss) attributable to the Partnership | (10,600 | ) | (10,435 | ) | (8,993 | ) | (21,282 | ) | |||||||
General Partner's Interest in net income (loss) | (97 | ) | (107 | ) | (26 | ) | (3 | ) | |||||||
Limited Partners' Interest in net income (loss) | $ | (10,503 | ) | $ | (10,328 | ) | $ | (8,967 | ) | $ | (21,279 | ) | |||
Limited Partners' income (loss) per unit: | |||||||||||||||
Loss from continuing operations | $ | (0.32 | ) | $ | (0.33 | ) | $ | (0.33 | ) | $ | (0.61 | ) | |||
Net income (loss) | $ | (0.33 | ) | $ | (0.33 | ) | $ | (0.33 | ) | $ | (0.61 | ) | |||
Year Ended December 31, 2015 | |||||||||||||||
Total revenues | $ | 238,035 | $ | 265,703 | $ | 209,416 | $ | 200,733 | |||||||
Gross margin (1) | 73,088 | 66,757 | 56,829 | 72,380 | |||||||||||
Operating income (loss) | 2,187 | (5,769 | ) | (10,831 | ) | (158,322 | ) | ||||||||
Net income (loss) from continuing operations | (1,525 | ) | (10,913 | ) | (15,207 | ) | (157,165 | ) | |||||||
Income (loss) from discontinued operations, net of tax | (402 | ) | 511 | (1,300 | ) | (13,840 | ) | ||||||||
Net income (loss) attributable to noncontrolling interest | 4 | 22 | 24 | (63 | ) | ||||||||||
Net income (loss) attributable to the Partnership | (1,932 | ) | (10,425 | ) | (16,532 | ) | (170,939 | ) | |||||||
General Partner's Interest in net income (loss) | (32 | ) | (66 | ) | (104 | ) | (1,621 | ) | |||||||
Limited Partners' Interest in net income (loss) | $ | (1,900 | ) | $ | (10,358 | ) | $ | (16,428 | ) | $ | (169,319 | ) | |||
Limited Partners' income (loss) per unit: | |||||||||||||||
Loss from continuing operations | $ | (0.15 | ) | $ | (0.39 | ) | $ | (0.50 | ) | $ | (3.55 | ) | |||
Net loss | $ | (0.16 | ) | $ | (0.38 | ) | $ | (0.53 | ) | $ | (3.85 | ) |
(1) | For a definition of gross margin and a reconciliation to its most directly comparable financial measure calculated and presented in accordance with GAAP and a discussion of how we use gross margin to evaluate our operating performance, please read Item 7. "Management's Discussion and Analysis, How We Evaluate Our Operations." |
(2) | We recognized goodwill impairment charges of $15.4 million and $148.5 million in the fourth quarters of 2016 and 2015, respectively. |
|
|
• | Level 1 – Inputs represent unadjusted quoted prices in active markets for identical assets or liabilities; |
• | Level 2 – Inputs include quoted prices for similar assets and liabilities in active markets that are either directly or indirectly observable; and |
• | Level 3 – Inputs are unobservable and considered significant to fair value measurement. |
|
Years Ended December 31, | |||||||
2015 | 2014 | ||||||
(in thousands) | |||||||
Total revenues | $ | 74 | $ | 474 | |||
Loss from discontinued operations, net of tax | (80 | ) | (611 | ) |
Year Ended December 31, 2014 | |||
(in thousands) | |||
Total revenues | $ | 7,865 | |
Net loss from discontinued operations, including loss on disposal of $7,288 | (9,608 | ) |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(in thousands) | |||||||||||
Revenues | |||||||||||
Total revenues | $ | 11,495 | $ | 429,784 | $ | 967,480 | |||||
Costs and Expenses | |||||||||||
Costs of sales | 11,687 | 426,886 | 961,428 | ||||||||
Direct operating expenses | 203 | 2,269 | 2,866 | ||||||||
Loss on impairment of goodwill and assets held for sale | — | 12,909 | — | ||||||||
Depreciation, amortization and accretion | 211 | 2,281 | 2,258 | ||||||||
(Gain) loss on sale of assets, net | (114 | ) | 119 | 229 | |||||||
Total expenses | 11,987 | 444,464 | 966,781 | ||||||||
Operating (loss) income | (492 | ) | (14,680 | ) | 699 | ||||||
Other income (expense) | (47 | ) | (271 | ) | (366 | ) | |||||
(Loss) income from discontinued operations before income tax expense | (539 | ) | (14,951 | ) | 333 | ||||||
Income tax expense | — | — | — | ||||||||
Net (loss) income from discontinued operations | $ | (539 | ) | $ | (14,951 | ) | $ | 333 |
|
December 31, | ||||||||
2016 | 2015 | |||||||
(in thousands) | ||||||||
Crude oil | $ | 1,216 | $ | 486 | ||||
NGLs | 3,482 | 2,638 | ||||||
Refined products | 291 | 463 | ||||||
Materials, supplies and equipment | 1,787 | 1,654 | ||||||
Total inventory | $ | 6,776 | $ | 5,241 |
|
December 31, | |||||||
2016 | 2015 | ||||||
(in thousands) | |||||||
Prepaid insurance | $ | 9,702 | $ | 5,187 | |||
Insurance receivables | 2,895 | 115 | |||||
Other receivables | 2,998 | 2,688 | |||||
Due from related parties | 4,805 | 8,688 | |||||
Risk management assets | 964 | 365 | |||||
Other assets | 6,303 | 5,753 | |||||
Discontinued operations, current assets | — | 2,730 | |||||
Total other current assets | $ | 27,667 | $ | 25,526 |
|
December 31, 2016 | December 31, 2015 | |||||||
Notional Volume | Maturity | Notional Volume | Maturity | |||||
Commodity Swaps: | ||||||||
Propane Fixed Price (Gallons) | 4,364,880 | Jan 2017 - Nov 2018 | 8,614,631 | Jan 2016 - July 2017 | ||||
Crude Oil Fixed Price (Barrels) | — | — | (93,000) | Jan 2016 | ||||
Crude Oil Basis (Barrels) | 180,000 | Jan 2017 - Mar 2017 | — | — |
December 31, 2016 | December 31, 2015 | |||||||
Notional Volume | Maturity | Notional Volume | Maturity | |||||
Commodity Swaps: | ||||||||
Propane Fixed Price (Gallons) | 4,364,880 | Jan 2017 - Nov 2018 | 8,614,631 | Jan 2016 - July 2017 | ||||
Crude Oil Fixed Price (Barrels) | — | — | (93,000) | Jan 2016 | ||||
Crude Oil Basis (Barrels) | 180,000 | Jan 2017 - Mar 2017 | — | — |
Notional Amount | Term | Fair Value | ||
(in thousands) | (in thousands) | |||
$200,000 | January 3, 2017 thru September 3, 2019 | $ | 1,912 | |
$100,000 | January 1, 2017 thru December 31, 2017 | (71 | ) | |
$100,000 | January 1, 2018 thru January 31, 2019 | 226 | ||
$100,000 | January 1, 2018 thru December 31, 2021 | 3,090 | ||
$150,000 | January 1, 2018 thru December 31, 2022 | 5,219 | ||
$ | 10,376 |
Gross Risk Management Position | Netting Adjustment | Net Risk Management Position | ||||||||||||||||||||||
Balance Sheet Classification | December 31, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Other current assets | $ | 1,036 | $ | 457 | $ | (72 | ) | $ | (92 | ) | $ | 964 | $ | 365 | ||||||||||
Risk management assets - long term | 10,665 | — | (1 | ) | — | 10,664 | — | |||||||||||||||||
Total assets | $ | 11,701 | $ | 457 | $ | (73 | ) | $ | (92 | ) | $ | 11,628 | $ | 365 | ||||||||||
Accrued expenses and other current liabilities | $ | (253 | ) | $ | (450 | ) | $ | 72 | $ | 92 | $ | (181 | ) | $ | (358 | ) | ||||||||
Other liabilities | (1 | ) | (24 | ) | 1 | — | — | (24 | ) | |||||||||||||||
Total liabilities | $ | (254 | ) | $ | (474 | ) | $ | 73 | $ | 92 | $ | (181 | ) | $ | (382 | ) |
Realized | Unrealized | |||||||
(in thousands) | ||||||||
2016 | ||||||||
Losses on commodity derivatives, net | $ | (1,480 | ) | $ | 1,025 | |||
Interest expense | (144 | ) | 10,375 | |||||
Direct operating expenses | (966 | ) | — | |||||
Total | $ | (2,590 | ) | $ | 11,400 | |||
2015 | ||||||||
Losses on commodity derivatives, net | $ | (13,209 | ) | $ | 11,477 | |||
Interest expense | (425 | ) | 373 | |||||
Direct operating expenses | (913 | ) | — | |||||
Total | $ | (14,547 | ) | $ | 11,850 | |||
2014 | ||||||||
Losses on commodity derivatives, net | $ | (337 | ) | $ | (12,334 | ) | ||
Interest expense | (707 | ) | 284 | |||||
Direct operating expenses | (1,035 | ) | — | |||||
Total | $ | (2,079 | ) | $ | (12,050 | ) |
|
Useful Life (in years) | December 31, 2016 | December 31, 2015 | |||||||
(in thousands) | |||||||||
Land | N/A | $ | 23,520 | $ | 18,902 | ||||
Construction in progress | N/A | 131,448 | 58,146 | ||||||
Transportation Equipment | 5 to 15 | 44,060 | 46,582 | ||||||
Buildings and improvements | 4 to 40 | 24,225 | 22,398 | ||||||
Processing and treating plants | 8 to 40 | 120,977 | 102,111 | ||||||
Pipelines and compressors | 3 to 40 | 804,815 | 775,486 | ||||||
Storage | 3 to 40 | 210,579 | 210,208 | ||||||
Equipment | 5 to 20 | 102,409 | 78,131 | ||||||
Total property, plant and equipment | 1,462,033 | 1,311,964 | |||||||
Less accumulated depreciation | (317,030 | ) | (240,450 | ) | |||||
Property, plant and equipment, net | $ | 1,145,003 | $ | 1,071,514 |
|
Gas Gathering and Processing Services | Liquid Pipelines and Services | Terminalling Services | Propane Marketing Services | Total | |||||||||||
(in thousands) | |||||||||||||||
Balance at January 1, 2015 | $ | 125,974 | $ | 137,243 | $ | 88,466 | $ | 31,335 | $ | 383,018 | |||||
Goodwill acquired during the year | — | — | — | 5,806 | 5,806 | ||||||||||
Return of purchase price | (7,382 | ) | — | — | — | (7,382 | ) | ||||||||
Impairment charges | (118,592 | ) | (23,574 | ) | — | (6,322 | ) | (148,488 | ) | ||||||
Balance at December 31, 2015 | — | 113,669 | 88,466 | 30,819 | 232,954 | ||||||||||
Impairment charges | — | — | (15,456 | ) | (15,456 | ) | |||||||||
Balance at December 31, 2016 | $ | — | $ | 113,669 | $ | 88,466 | $ | 15,363 | $ | 217,498 |
December 31, | |||||||
2016 | 2015 | ||||||
(in thousands) | |||||||
Gross carrying amount: | |||||||
Customer relationships | $ | 133,503 | $ | 136,030 | |||
Customer contracts | 95,594 | 95,594 | |||||
Dedicated acreage | 53,350 | 53,350 | |||||
Collaborative arrangements | 11,884 | 11,884 | |||||
Noncompete agreements | 3,423 | 3,575 | |||||
Other | 751 | 751 | |||||
$ | 298,505 | $ | 301,184 | ||||
Accumulated amortization: | |||||||
Customer relationships | $ | (31,471 | ) | $ | (23,885 | ) | |
Customer contracts | (33,414 | ) | (24,538 | ) | |||
Dedicated acreage | (4,439 | ) | (2,661 | ) | |||
Collaborative arrangements | (601 | ) | — | ||||
Noncompete agreements | (3,086 | ) | (2,664 | ) | |||
Other | (211 | ) | (155 | ) | |||
$ | (73,222 | ) | $ | (53,903 | ) | ||
Net carrying amount: | |||||||
Customer relationships | $ | 102,032 | $ | 112,145 | |||
Customer contracts | 62,180 | 71,056 | |||||
Dedicated acreage | 48,911 | 50,689 | |||||
Collaborative arrangements | 11,283 | 11,884 | |||||
Noncompete agreements | 337 | 911 | |||||
Other | 540 | 596 | |||||
$ | 225,283 | $ | 247,281 |
|
Delta House (1) | Emerald Transactions | |||||||||||||||||||||||||||||||
FPS | OGL | Destin | Tri-States | Okeanos | Wilprise | MPOG | Total | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Ownership % at December 31, 2016 | 20.1 | % | 20.1 | % | 49.7 | % | 16.7 | % | 66.7 | % | 25.3 | % | 66.7 | % | ||||||||||||||||||
Balance at December 31, 2013 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Investments | — | — | — | — | — | — | 12,000 | 12,000 | ||||||||||||||||||||||||
Earnings in unconsolidated affiliates | — | — | — | — | — | — | 348 | 348 | ||||||||||||||||||||||||
Contributions | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Distributions | — | — | — | — | — | — | (1,980 | ) | (1,980 | ) | ||||||||||||||||||||||
Balance at December 31, 2014 | — | — | — | — | — | — | 10,368 | 10,368 | ||||||||||||||||||||||||
Investments | 40,559 | 25,144 | — | — | — | — | — | 65,703 | ||||||||||||||||||||||||
Earnings in unconsolidated affiliates | 5,457 | 2,013 | — | — | — | — | 731 | 8,201 | ||||||||||||||||||||||||
Contributions | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Distributions | (12,551 | ) | (4,097 | ) | — | — | — | — | (3,920 | ) | (20,568 | ) | ||||||||||||||||||||
Balance at December 31, 2015 | 33,465 | 23,060 | — | — | — | — | 7,179 | 63,704 | ||||||||||||||||||||||||
Investments | 55,461 | 3,255 | 122,830 | 56,681 | 27,451 | 5,064 | — | 270,742 | ||||||||||||||||||||||||
Earnings in unconsolidated affiliates | 21,022 | 9,260 | 3,946 | 1,633 | 3,642 | 437 | 218 | 40,158 | ||||||||||||||||||||||||
Contributions | — | — | — | — | — | — | 429 | 429 | ||||||||||||||||||||||||
Distributions | (45,465 | ) | (10,125 | ) | (15,894 | ) | (3,292 | ) | (4,034 | ) | (557 | ) | (3,679 | ) | (83,046 | ) | ||||||||||||||||
Balance at December 31, 2016 | $ | 64,483 | $ | 25,450 | $ | 110,882 | $ | 55,022 | $ | 27,059 | $ | 4,944 | $ | 4,147 | $ | 291,987 |
December 31, | ||||||||
2016 | 2015 | |||||||
(in thousands) | ||||||||
Current assets | $ | 120,167 | $ | 182,264 | ||||
Non-current assets | 1,369,492 | 1,418,299 | ||||||
Current liabilities | 133,085 | 146,490 | ||||||
Non-current liabilities | 541,312 | 419,215 |
Years ended December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
(in thousands) | ||||||||||||
Revenue | $ | 370,263 | $ | 235,041 | $ | 102,290 | ||||||
Operating expenses | 99,084 | 90,453 | 72,775 | |||||||||
Net income | 261,200 | 135,083 | 28,173 |
Emerald Transactions | |||||||||||||||
Destin | Tri-States | Okeanos | Wilprise | ||||||||||||
Revenues | $ | 34,360 | $ | 25,557 | $ | 10,453 | $ | 3,306 | |||||||
Net income | 8,272 | 15,983 | 1,911 | 2,028 | |||||||||||
Partnership ownership % | 49.7 | % | 16.7 | % | 66.7 | % | 25.3 | % | |||||||
Partnership share of investee net income | 4,109 | 2,664 | 1,274 | 513 | |||||||||||
Basis difference amortization | (163 | ) | (1,031 | ) | 2,368 | (76 | ) | ||||||||
Earnings in unconsolidated affiliates | 3,946 | 1,633 | 3,642 | 437 |
|
December 31, | ||||||||
2016 | 2015 | |||||||
Capital expenditures | $ | 14,499 | $ | 7,780 | ||||
Employee compensation | 10,804 | 7,870 | ||||||
Convertible preferred unit distributions | 7,103 | — | ||||||
Current portion of asset retirement obligation | 6,499 | 6,822 | ||||||
Accrued interest | 5,743 | 1,838 | ||||||
Additional Blackwater acquisition consideration | 5,000 | — | ||||||
Due to related parties | 4,072 | 3,894 | ||||||
Royalties payable | 3,926 | 4,163 | ||||||
Transaction costs | 3,000 | — | ||||||
Customer deposits | 3,080 | 3,742 | ||||||
Deferred financing costs | 2,743 | — | ||||||
Taxes payable | 1,688 | 1,563 | ||||||
Recoverable gas costs | 1,126 | 1,337 | ||||||
Gas imbalances payable | 1,098 | 413 | ||||||
Other | 10,903 | 7,329 | ||||||
Total accrued expenses and other current liabilities | $ | 81,284 | $ | 46,751 |
|
Years Ended December 31, | |||||||
2016 | 2015 | ||||||
Beginning balance | $ | 35,371 | $ | 34,645 | |||
Liabilities assumed (1) | 14,542 | — | |||||
Revision in estimate | 230 | — | |||||
Expenditures | (858 | ) | (91 | ) | |||
Accretion expense | 1,577 | 817 | |||||
Ending balance | 50,862 | 35,371 | |||||
Less: current portion | 6,499 | 6,822 | |||||
Noncurrent asset retirement obligation | $ | 44,363 | $ | 28,549 |
|
Series A | Series C | Series D | |||||||||||||||
Units | $ | Units | $ | Units | $ | ||||||||||||
(in thousands) | |||||||||||||||||
December 31, 2013 | 5,279 | $ | 94,811 | — | $ | — | — | $ | — | ||||||||
Issuance of units | — | — | — | — | — | — | |||||||||||
Paid in kind unit distributions | 466 | 13,154 | — | — | — | — | |||||||||||
December 31, 2014 | 5,745 | 107,965 | — | — | — | — | |||||||||||
Issuance of units | 2,571 | 44,769 | — | — | — | — | |||||||||||
Paid in kind unit distributions | 894 | 16,978 | — | — | — | — | |||||||||||
December 31, 2015 | 9,210 | 169,712 | — | — | — | — | |||||||||||
Issuance of units | — | — | 8,571 | 115,457 | 2,333 | 34,475 | |||||||||||
Paid in kind unit distributions | 897 | 11,674 | 221 | 2,772 | — | — | |||||||||||
December 31, 2016 | 10,107 | $ | 181,386 | 8,792 | $ | 118,229 | 2,333 | $ | 34,475 |
|
AMID | JPE | 8.5% Senior | 3.77% Senior | ||||||||||||||||||||
Revolving Credit | Revolving Credit | Notes due | Notes due | Other | |||||||||||||||||||
Agreement (1) | Agreement (1) | 2021 | 2031 | Debt | Total | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Balance | $ | 711,250 | $ | 177,000 | $ | 300,000 | $ | 60,000 | $ | 3,809 | $ | 1,252,059 | |||||||||||
Less unamortized deferred financing costs and discount | — | — | (8,691 | ) | (2,345 | ) | — | (11,036 | ) | ||||||||||||||
Subtotal | 711,250 | 177,000 | 291,309 | 57,655 | 3,809 | 1,241,023 | |||||||||||||||||
Less current portion | — | — | — | (1,676 | ) | (3,809 | ) | (5,485 | ) | ||||||||||||||
Non-current portion | $ | 711,250 | $ | 177,000 | $ | 291,309 | $ | 55,979 | $ | — | $ | 1,235,538 |
AMID | JPE | ||||||||||||||
Revolving Credit | Revolving Credit | Other | |||||||||||||
Agreement (1) | Agreement (1) | Debt | Total | ||||||||||||
(in thousands) | |||||||||||||||
Balance | $ | 525,100 | $ | 162,000 | $ | 3,639 | $ | 690,739 | |||||||
Less current portion | — | — | (2,899 | ) | (2,899 | ) | |||||||||
Non-current portion | $ | 525,100 | $ | 162,000 | $ | 740 | $ | 687,840 |
Year | Percentage |
2018 | 104.250% |
2019 | 102.125% |
2020 and thereafter | 100.000% |
|
General Partner Interest | Limited Partner Interest | Series B Convertible Units | JPE Series D Units | |||||||||
Balances at December 31, 2013 | 185 | 13,394 | — | — | ||||||||
Initial issuance of Series B Units | — | — | 1,168 | |||||||||
Issuance of Series B Units | — | — | 87 | |||||||||
Issuance of JPE Series D Units | — | — | — | 1,008 | ||||||||
Redemption of JPE Series D Units | — | — | — | (1,008 | ) | |||||||
LTIP vesting | — | 80 | — | |||||||||
Issuance of GP units | 207 | — | — | |||||||||
Exercise of warrants | — | 300 | — | |||||||||
Issuance of common units in JP Development transaction | — | 5,841 | — | |||||||||
Issuance of common units | — | 23,025 | — | |||||||||
Balances at December 31, 2014 | 392 | 42,640 | 1,255 | — | ||||||||
Issuance of Series B Units | — | — | 95 | — | ||||||||
LTIP vesting | — | 58 | — | — | ||||||||
Exercise of unit options | — | 152 | — | — | ||||||||
Issuance of GP units | 144 | — | — | — | ||||||||
Issuance of common units | — | 7,654 | — | — | ||||||||
Balances at December 31, 2015 | 536 | 50,504 | 1,350 | — | ||||||||
Conversion of Series B Units | — | 1,350 | (1,350 | ) | — | |||||||
Return of escrow units | — | (1,034 | ) | — | — | |||||||
LTIP vesting | — | 283 | — | — | ||||||||
Issuance of GP units | 144 | — | — | — | ||||||||
Issuance of common units | — | 248 | — | — | ||||||||
Balances at December 31, 2016 | 680 | 51,351 | — | — |
Years Ended December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Series A Units | ||||||||||||
Cash: | ||||||||||||
Paid | $ | 4,935 | $ | — | $ | 2,658 | ||||||
Accrued | 2,514 | — | — | |||||||||
Paid-in-kind units | 11,674 | 16,978 | 13,154 | |||||||||
Total | 19,123 | 16,978 | 15,812 | |||||||||
Series B Units | ||||||||||||
Paid-in-kind units | — | 1,373 | 2,220 | |||||||||
Total | — | 1,373 | 2,220 | |||||||||
Series C Units | ||||||||||||
Cash: | ||||||||||||
Paid | 3,089 | — | — | |||||||||
Accrued | 3,626 | — | — | |||||||||
Paid-in-kind units | 2,772 | — | — | |||||||||
Total | 9,487 | — | — | |||||||||
Series D Units | ||||||||||||
AMID Series D Units Accrued | 963 | — | — | |||||||||
JPE Series D Units Paid-in-kind units | — | — | 2,436 | |||||||||
Total | 963 | — | 2,436 | |||||||||
Limited Partner Units | ||||||||||||
Cash: | ||||||||||||
Paid | 101,561 | 93,622 | 114,612 | |||||||||
Accrued | — | — | — | |||||||||
Total | 101,561 | 93,622 | 114,612 | |||||||||
General Partner Units | ||||||||||||
Cash: | ||||||||||||
Paid | 2,551 | 6,789 | 2,695 | |||||||||
Accrued | — | — | — | |||||||||
Additional Blackwater acquisition consideration | 5,000 | — | — | |||||||||
Total | 7,551 | 6,789 | 2,695 | |||||||||
Summary | ||||||||||||
Cash | ||||||||||||
Paid | 112,136 | 100,411 | 119,965 | |||||||||
Accrued | 7,103 | — | — | |||||||||
Paid-in-kind units | 14,446 | 18,351 | 17,810 | |||||||||
Additional Blackwater acquisition consideration | 5,000 | — | — | |||||||||
Total | $ | 138,685 | $ | 118,762 | $ | 137,775 |
|
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Net loss from continuing operations | $ | (48,005 | ) | $ | (184,810 | ) | $ | (69,681 | ) | ||
Less: Net income (loss) attributable to noncontrolling interests | 2,766 | (13 | ) | 3,993 | |||||||
Net loss from continuing operations attributable to the Partnership | (50,771 | ) | (184,797 | ) | (73,674 | ) | |||||
Less: | |||||||||||
Distributions on Series A Units | 19,138 | 16,978 | 14,492 | ||||||||
Distributions on Series C Units | 9,487 | — | — | ||||||||
Distributions on Series D Units | 963 | — | — | ||||||||
Distributions on Series B Units | — | 1,373 | 2,220 | ||||||||
Net income (loss) from continuing operations attributable to JPE preferred units | — | — | 656 | ||||||||
Net income (loss) from continuing operations attributable to predecessor capital | — | — | (2,014 | ) | |||||||
General partner's distributions | 2,550 | 6,790 | 2,694 | ||||||||
General partner's share in undistributed loss | (1,745 | ) | (3,309 | ) | (1,510 | ) | |||||
Net loss from continuing operations attributable to Limited Partners | (81,164 | ) | (206,629 | ) | (90,212 | ) | |||||
Net loss from discontinued operations attributable to Limited Partners | (532 | ) | (15,031 | ) | (269 | ) | |||||
Net loss attributable to Limited Partners | $ | (81,696 | ) | $ | (221,660 | ) | $ | (90,481 | ) | ||
Weighted average number of common units used in computation of Limited Partners' net loss per common unit - basic and diluted | 51,176 | 45,050 | 27,524 | ||||||||
Limited Partners' net loss from continuing operations per unit (basic and diluted) | $ | (1.59 | ) | $ | (4.59 | ) | $ | (3.28 | ) | ||
Limited Partners' net loss from discontinued operations per unit (basic and diluted) | (0.01 | ) | (0.33 | ) | (0.01 | ) | |||||
Limited Partners' net loss per common unit - basic and diluted (1) | $ | (1.60 | ) | $ | (4.92 | ) | $ | (3.29 | ) |
|
Units | Weighted Average Grant date Fair Value | ||||||
Outstanding units at December 2014 | — | $ | — | ||||
Granted | 287,750 | 22.25 | |||||
Vested | (4,766 | ) | 22.34 | ||||
Forfeited | (56,005 | ) | 21.23 | ||||
Outstanding units at December 2015 | 226,979 | $ | 22.5 | ||||
Granted | 209,507 | 9.23 | |||||
Vested | (55,778 | ) | 19.51 | ||||
Forfeited | (67,716 | ) | 18.74 | ||||
Outstanding units at December 2016 | 312,992 | $ | 14.96 |
Units | Weighted-Average Grant Date Fair Value Per Unit | Aggregate Intrinsic Value (1) (In thousands) | |||||||||
Outstanding units at December 2013 | 75,529 | $ | 17.62 | $ | 2,045 | ||||||
Granted | 188,946 | 20.80 | |||||||||
Forfeited | (12,009 | ) | (18.28 | ) | |||||||
Vested | (51,334 | ) | (20.89 | ) | |||||||
Outstanding units at December 2014 | 201,132 | $ | 19.85 | $ | 3,964 | ||||||
Granted | 546,329 | 12.25 | |||||||||
Forfeited | (31,298 | ) | (15.62 | ) | |||||||
Vested | (146,404 | ) | (18.47 | ) | |||||||
Outstanding units at December 2015 | 569,759 | $ | 13.15 | $ | 4,609 | ||||||
Granted | 1,374,226 | 2.14 | |||||||||
Forfeited | (411,794 | ) | (2.60 | ) | |||||||
Vested | (286,348 | ) | (12.18 | ) | |||||||
Outstanding units at December 2016 | 1,245,843 | $ | 4.72 | $ | 22,674 |
Years Ended December 31, | |||||
2016 | 2015 | ||||
Weighted average common unit price volatility | 61.1 | % | 47.0 | % | |
Expected distribution yield | 12.6 | % | 26.3 | % | |
Weighted average expected term (in years) | 4.10 | 3.5 | |||
Weighted average risk-free rate | 1.1 | % | 1.3 | % |
Units | Weighted-Average Exercise Price | Weighted-Average Grant Date Fair Value per Unit | Aggregate Intrinsic Value (1) (In thousands) | Weighted Average Remaining Contractual Life (Years) | ||||||||||||||
Outstanding at December 31, 2014 | — | $ | — | $ | — | $ | — | — | ||||||||||
Granted | 200,000 | 7.50 | 0.33 | — | — | |||||||||||||
Vested | — | — | — | — | ||||||||||||||
Forfeited | — | — | — | — | ||||||||||||||
Outstanding at December 31, 2015 | 200,000 | $ | 7.50 | $ | 0.33 | $ | 118 | 4.2 | ||||||||||
Granted | 75,000 | 13.13 | 2.65 | — | — | |||||||||||||
Vested | — | — | — | — | ||||||||||||||
Forfeited | — | — | — | — | ||||||||||||||
Outstanding at December 31, 2016 | 275,000 | $ | 9.03 | $ | 0.96 | $ | 2,522 | 5.0 |
|
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Current income tax expense | $ | (521 | ) | $ | (648 | ) | $ | (146 | ) | ||
Deferred income tax expense | (2,057 | ) | (1,240 | ) | (711 | ) | |||||
Effective income tax rate | 5.7 | % | 1.0 | % | 1.2 | % |
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Net income (loss) before income tax expense | $ | (45,427 | ) | $ | (182,922 | ) | $ | (68,824 | ) | ||
US Federal statutory tax rate | 34 | % | 34 | % | 34 | % | |||||
Federal income tax (expense) benefit at statutory rate | 15,445 | 62,193 | 23,400 | ||||||||
Reconciling items: | |||||||||||
Partnership loss not subject to income tax (benefit) | (17,218 | ) | (63,083 | ) | (23,759 | ) | |||||
State and local tax expense | (800 | ) | (857 | ) | (459 | ) | |||||
Other | (5 | ) | (141 | ) | (39 | ) | |||||
Income tax expense | $ | (2,578 | ) | $ | (1,888 | ) | $ | (857 | ) |
December 31, | |||||||
2016 | 2015 | ||||||
Deferred tax assets: | |||||||
Net operating loss carryforwards | $ | 6,300 | $ | 7,570 | |||
Other | 577 | 493 | |||||
Total deferred tax assets | 6,877 | 8,063 | |||||
Deferred tax liabilities: | |||||||
Property, plant and equipment | (15,082 | ) | (14,236 | ) | |||
Deferred income tax liability, net | $ | (8,205 | ) | $ | (6,173 | ) |
|
Revolving Credit Agreements | 3.77% Senior Notes | 8.50% Senior Notes (1) | Asset Retirement Obligation (2) | Other | Total | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
2017 | $ | — | $ | 1,677 | $ | — | $ | 6,499 | $ | 9,869 | $ | 18,045 | ||||||||||||
2018 | — | 806 | — | — | 6,331 | 7,137 | ||||||||||||||||||
2019 | 888,250 | 2,233 | — | — | 5,079 | 895,562 | ||||||||||||||||||
2020 | — | 2,299 | — | — | 2,905 | 5,204 | ||||||||||||||||||
2021 | — | 4,430 | 300,000 | — | 2,253 | 306,683 | ||||||||||||||||||
Thereafter | — | 48,555 | — | 44,363 | 17,991 | 110,909 | ||||||||||||||||||
$ | 888,250 | $ | 60,000 | $ | 300,000 | $ | 50,862 | $ | 44,428 | $ | 1,343,540 |
|
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Supplemental cash flow information | |||||||||||
Interest payments, net of capitalized interest | $ | 22,303 | $ | 16,540 | $ | 13,905 | |||||
Cash paid for taxes | 530 | 450 | 108 | ||||||||
Supplemental non-cash information | |||||||||||
Increase (decrease) in accrued property, plant and equipment purchases | $ | 8,533 | $ | (21,841 | ) | $ | 35,018 | ||||
Contributions from general partner | 7,500 | 4,350 | — | ||||||||
Acquisitions partially funded by the issuance of common units | — | 3,442 | 414,396 | ||||||||
Assets acquired under capital lease | 139 | — | 177 | ||||||||
Issuance of Series C Units and Warrant in connection with the Emerald Transactions | 120,000 | — | — | ||||||||
Accrued cash distributions on convertible preferred units | 7,103 | — | — | ||||||||
Paid-in-kind distributions on convertible preferred units | 14,446 | 16,978 | 13,154 | ||||||||
Paid-in-kind distributions on Series B Units | — | 1,373 | 2,220 | ||||||||
Paid-in-kind distributions on JPE Series D units | — | — | 2,436 | ||||||||
Cancellation of escrow units | 6,817 | — | — | ||||||||
Additional Blackwater acquisition consideration | 5,000 | — | — |
|
December 31, 2016 | ||||||||||||||||||||||
Gas Gathering and Processing Services | Liquid Pipelines and Services | Natural Gas Transportation Services | Offshore Pipelines and Services | Terminalling Services | Propane Marketing Services | Total | ||||||||||||||||
(in thousands) | ||||||||||||||||||||||
Commodity sales | $ | 91,444 | $ | 304,501 | $ | 21,999 | $ | 6,812 | $ | 14,655 | $ | 129,116 | $ | 568,527 | ||||||||
Services | 22,558 | 12,146 | 18,109 | 40,502 | 50,999 | 14,536 | 158,850 | |||||||||||||||
Gains (losses) on commodity derivatives, net | (833 | ) | (341 | ) | — | (7 | ) | (436 | ) | 1,162 | (455 | ) | ||||||||||
Total Revenue | 113,169 | 316,306 | 40,108 | 47,307 | 65,218 | 144,814 | 726,922 | |||||||||||||||
Cost of sales | 63,832 | 288,496 | 21,288 | 3,049 | 11,564 | 54,794 | 443,023 | |||||||||||||||
Direct operating expenses | 33,802 | 8,383 | 5,923 | 10,945 | 10,783 | 53,536 | 123,372 | |||||||||||||||
Corporate expenses | 99,430 | |||||||||||||||||||||
Depreciation, amortization, and accretion | 106,818 | |||||||||||||||||||||
Loss on sale of assets, net | 2,870 | |||||||||||||||||||||
Loss on impairment of plant, property and equipment | 697 | |||||||||||||||||||||
Loss on impairment of goodwill | 15,456 | |||||||||||||||||||||
Interest expense | 21,469 | |||||||||||||||||||||
Earnings in unconsolidated affiliates | (40,158 | ) | ||||||||||||||||||||
Other (income) expense | (628 | ) | ||||||||||||||||||||
Income tax expense | 2,578 | |||||||||||||||||||||
Income (loss) from continuing operations | (48,005 | ) | ||||||||||||||||||||
Loss from discontinuing operations, net of tax | (539 | ) | ||||||||||||||||||||
Net income (loss) | (48,544 | ) | ||||||||||||||||||||
Net income (loss) attributable to non-controlling interest | 2,766 | |||||||||||||||||||||
Net income (loss) attributable to partnership | $ | (51,310 | ) | |||||||||||||||||||
Segment gross margin | $ | 48,245 | $ | 29,760 | $ | 18,616 | $ | 82,346 | $ | 42,872 | $ | 88,948 |
December 31, 2015 | ||||||||||||||||||||||
Gas Gathering and Processing Services | Liquid Pipelines and Services | Natural Gas Transportation Services | Offshore Pipelines and Services | Terminalling Services | Propane Marketing Services | Total | ||||||||||||||||
(in thousands) | ||||||||||||||||||||||
Commodity sales | $ | 107,680 | $ | 457,390 | $ | 23,972 | $ | 13,798 | $ | 10,343 | $ | 159,674 | $ | 772,857 | ||||||||
Services | 30,196 | 12,895 | 16,035 | 21,457 | 45,022 | 17,157 | 142,762 | |||||||||||||||
Gains (losses) on commodity derivatives, net | 1,240 | — | — | 84 | 21 | (3,077 | ) | (1,732 | ) | |||||||||||||
Total Revenue | 139,116 | 470,285 | 40,007 | 35,339 | 55,386 | 173,754 | 913,887 | |||||||||||||||
Cost of sales | 72,960 | 446,125 | 21,858 | 9,914 | 8,893 | 70,553 | 630,303 | |||||||||||||||
Direct operating expenses | 35,250 | 8,310 | 6,728 | 9,425 | 10,414 | 57,353 | 127,480 | |||||||||||||||
Corporate expenses | 77,835 | |||||||||||||||||||||
Depreciation, amortization, and accretion | 98,596 | |||||||||||||||||||||
Loss on sale of assets, net | 3,920 | |||||||||||||||||||||
Loss on impairment of goodwill | 148,488 | |||||||||||||||||||||
Interest expense | 20,120 | |||||||||||||||||||||
Earnings in unconsolidated affiliates | (8,201 | ) | ||||||||||||||||||||
Other (income) expense | (1,732 | ) | ||||||||||||||||||||
Income tax expense | 1,888 | |||||||||||||||||||||
Income (loss) from continuing operations | (184,810 | ) | ||||||||||||||||||||
Loss from discontinuing operations, net of tax | (15,031 | ) | ||||||||||||||||||||
Net income (loss) | (199,841 | ) | ||||||||||||||||||||
Net income (loss) attributable to non-controlling interest | (13 | ) | ||||||||||||||||||||
Net income (loss) attributable to partnership | $ | (199,828 | ) | |||||||||||||||||||
Segment gross margin | $ | 65,692 | $ | 24,160 | $ | 18,073 | $ | 33,613 | $ | 36,079 | $ | 91,437 |
December 31, 2014 | ||||||||||||||||||||||
Gas Gathering and Processing Services | Liquid Pipelines and Services | Natural Gas Transportation Services | Offshore Pipelines and Services | Terminalling Services | Propane Marketing Services | Total | ||||||||||||||||
(in thousands) | ||||||||||||||||||||||
Commodity sales | $ | 148,198 | $ | 470,336 | $ | 70,964 | $ | 20,044 | $ | 11,521 | $ | 188,702 | $ | 909,765 | ||||||||
Services | 15,248 | 11,548 | 12,925 | 24,426 | 41,357 | 18,194 | 123,698 | |||||||||||||||
Gains (losses) on commodity derivatives, net | 1,050 | — | — | 41 | — | (13,762 | ) | (12,671 | ) | |||||||||||||
Total Revenue | 164,496 | 481,884 | 83,889 | 44,511 | 52,878 | 193,134 | 1,020,792 | |||||||||||||||
Cost of dales | 112,719 | 459,319 | 70,100 | 15,133 | 6,859 | 125,742 | 789,872 | |||||||||||||||
Direct operating expenses | 21,197 | 5,819 | 6,975 | 11,142 | 11,525 | 52,885 | 109,543 | |||||||||||||||
Corporate expenses | 72,744 | |||||||||||||||||||||
Depreciation, amortization, and accretion | 72,527 | |||||||||||||||||||||
Loss on sale of assets, net | 5,080 | |||||||||||||||||||||
Loss on impairment of plant, property and equipment | 21,344 | |||||||||||||||||||||
Interest expense | 16,558 | |||||||||||||||||||||
Earnings in unconsolidated affiliates | (348 | ) | ||||||||||||||||||||
Other (income) expense | 662 | |||||||||||||||||||||
Loss on extinguishment of debt | 1,634 | |||||||||||||||||||||
Income tax expense | 857 | |||||||||||||||||||||
Income (loss) from continuing operations | (69,681 | ) | ||||||||||||||||||||
Loss from discontinuing operations, net of tax | (9,886 | ) | ||||||||||||||||||||
Net income (loss) | (79,567 | ) | ||||||||||||||||||||
Net income (loss) attributable to non-controlling interest | 3,993 | |||||||||||||||||||||
Net income (loss) attributable to partnership | $ | (83,560 | ) | |||||||||||||||||||
Segment gross margin | $ | 51,213 | $ | 22,564 | $ | 13,691 | $ | 29,089 | $ | 34,493 | $ | 80,083 |
December 31, | |||||||
2016 | 2015 | ||||||
Segment assets: | (in thousands) | ||||||
Gas Gathering and Processing Services | $ | 530,889 | $ | 496,014 | |||
Liquid Pipelines and Services | 422,636 | 426,854 | |||||
Natural Gas Transportation Services | 221,604 | 146,927 | |||||
Offshore Pipelines and Services | 400,193 | 190,271 | |||||
Terminalling Services | 299,534 | 291,130 | |||||
Propane Marketing Services | 140,864 | 173,558 | |||||
Other (1) | 333,601 | 27,135 | |||||
Total assets | $ | 2,349,321 | $ | 1,751,889 |
|
First Quarter | Second Quarter | Third Quarter | Fourth Quarter (2) | ||||||||||||
Year Ended December 31, 2016 | |||||||||||||||
Total revenues | $ | 143,376 | $ | 185,836 | $ | 187,659 | $ | 210,051 | |||||||
Gross margin (1) | 74,045 | 81,072 | 76,427 | 79,243 | |||||||||||
Operating loss | (8,401 | ) | (10,368 | ) | (12,125 | ) | (33,850 | ) | |||||||
Net income (loss) | (10,603 | ) | (9,481 | ) | (7,797 | ) | (20,663 | ) | |||||||
Net income (loss) attributable to the Partnership | (10,600 | ) | (10,435 | ) | (8,993 | ) | (21,282 | ) | |||||||
General Partner's Interest in net income (loss) | (97 | ) | (107 | ) | (26 | ) | (3 | ) | |||||||
Limited Partners' Interest in net income (loss) | $ | (10,503 | ) | $ | (10,328 | ) | $ | (8,967 | ) | $ | (21,279 | ) | |||
Limited Partners' income (loss) per unit: | |||||||||||||||
Loss from continuing operations | $ | (0.32 | ) | $ | (0.33 | ) | $ | (0.33 | ) | $ | (0.61 | ) | |||
Net income (loss) | $ | (0.33 | ) | $ | (0.33 | ) | $ | (0.33 | ) | $ | (0.61 | ) | |||
Year Ended December 31, 2015 | |||||||||||||||
Total revenues | $ | 238,035 | $ | 265,703 | $ | 209,416 | $ | 200,733 | |||||||
Gross margin (1) | 73,088 | 66,757 | 56,829 | 72,380 | |||||||||||
Operating income (loss) | 2,187 | (5,769 | ) | (10,831 | ) | (158,322 | ) | ||||||||
Net income (loss) from continuing operations | (1,525 | ) | (10,913 | ) | (15,207 | ) | (157,165 | ) | |||||||
Income (loss) from discontinued operations, net of tax | (402 | ) | 511 | (1,300 | ) | (13,840 | ) | ||||||||
Net income (loss) attributable to noncontrolling interest | 4 | 22 | 24 | (63 | ) | ||||||||||
Net income (loss) attributable to the Partnership | (1,932 | ) | (10,425 | ) | (16,532 | ) | (170,939 | ) | |||||||
General Partner's Interest in net income (loss) | (32 | ) | (66 | ) | (104 | ) | (1,621 | ) | |||||||
Limited Partners' Interest in net income (loss) | $ | (1,900 | ) | $ | (10,358 | ) | $ | (16,428 | ) | $ | (169,319 | ) | |||
Limited Partners' income (loss) per unit: | |||||||||||||||
Loss from continuing operations | $ | (0.15 | ) | $ | (0.39 | ) | $ | (0.50 | ) | $ | (3.55 | ) | |||
Net loss | $ | (0.16 | ) | $ | (0.38 | ) | $ | (0.53 | ) | $ | (3.85 | ) |
(1) | For a definition of gross margin and a reconciliation to its most directly comparable financial measure calculated and presented in accordance with GAAP and a discussion of how we use gross margin to evaluate our operating performance, please read Item 7. "Management's Discussion and Analysis, How We Evaluate Our Operations." |
(2) | We recognized goodwill impairment charges of $15.4 million and $148.5 million in the fourth quarters of 2016 and 2015, respectively. |
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