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Purchase Price Allocation | |||
Property, plant and equipment: | |||
Pipelines | $ | 12,266 | |
Equipment | 16,484 | ||
Total property, plant and equipment | 28,750 | ||
Intangible assets | 3,250 | ||
Total cash consideration | $ | 32,000 |
Six Months Ended | |||||||
June 30, 2017 | June 30, 2016 | ||||||
Revenue | $ | 396,254 | $ | 333,837 | |||
Income (loss) from continuing operations | $ | (56,407 | ) | $ | (17,962 | ) |
|
June 30, 2017 | December 31, 2016 | |||||||
Crude oil | $ | 2,741 | $ | 1,216 | ||||
NGLs | 3,207 | 3,482 | ||||||
Refined products | 413 | 291 | ||||||
Materials, supplies and equipment | 1,744 | 1,787 | ||||||
Total inventory | $ | 8,105 | $ | 6,776 |
|
June 30, 2017 | December 31, 2016 | ||||||
Prepaid insurance | $ | 5,109 | $ | 9,702 | |||
Insurance receivables | 6,162 | 2,895 | |||||
Due from related parties | 20,853 | 4,805 | |||||
Other receivables | 2,363 | 2,998 | |||||
Risk management assets | 1,772 | 964 | |||||
Other assets | 3,396 | 6,303 | |||||
Total other current assets | $ | 39,655 | $ | 27,667 |
|
June 30, 2017 | December 31, 2016 | |||||||||
Commodity Swaps | Volume | Maturity | Volume | Maturity | ||||||
Propane Fixed Price (gallons) | 10,892,201 | July 1, 2017 - December 31, 2019 | 4,364,880 | January 31, 2017 - November 30, 2018 | ||||||
Crude Oil Fixed Price (barrels) | 68,000 | July 1, 2017 - July 31, 2017 | — | — | ||||||
Crude Oil Basis (barrels) | — | — | 180,000 | January 25, 2017- March 25, 2017 |
Notional Amount | Term | As of June 30, 2017 | As of December 31, 2016 | |||||
$100,000 | July 1, 2017 through December 29, 2017 | $ | 119 | $ | — | |||
$100,000 | December 29, 2017 through January 29, 2019 | 208 | — | |||||
$200,000 | July 1, 2017 through September 3, 2019 | 1,711 | 1,912 | |||||
$100,000 | January 1, 2018 through December 31, 2021 | 2,385 | 3,090 | |||||
$150,000 | January 1, 2018 through December 31, 2022 | 3,944 | 5,219 | |||||
$ | 8,367 | $ | 10,221 |
Asset Derivatives | Liability Derivatives | ||||||||||||||||
Type | Balance Sheet Classification | June 30, 2017 | December 31, 2016 | June 30, 2017 | December 31, 2016 | ||||||||||||
Commodity swaps | Other current assets | $ | 234 | $ | 607 | $ | — | $ | — | ||||||||
Commodity swaps | Accrued expenses and other current liabilities | — | — | (404 | ) | (1 | ) | ||||||||||
Commodity swaps | Risk management assets - long term | — | 37 | — | — | ||||||||||||
Commodity swaps | Other liabilities | — | — | (196 | ) | (1 | ) | ||||||||||
Interest rate swaps | Other current assets | 663 | — | — | — | ||||||||||||
Interest rate swaps | Accrued expenses and other current liabilities | — | — | — | (252 | ) | |||||||||||
Interest rate swaps | Risk management assets- long term | 7,704 | 10,628 | — | — | ||||||||||||
Weather derivatives | Other current assets | $ | 1,110 | $ | 429 | $ | — | $ | — |
Gross Risk Management Position | Netting Adjustments | Net Risk Management Position | ||||||||||||||||||||||
Balance Sheet Classification | June 30, 2017 | December 31, 2016 | June 30, 2017 | December 31, 2016 | June 30, 2017 | December 31, 2016 | ||||||||||||||||||
Other current assets | $ | 2,006 | $ | 1,036 | $ | (234 | ) | $ | (72 | ) | $ | 1,772 | $ | 964 | ||||||||||
Risk management assets- long term | 7,704 | 10,665 | — | (1 | ) | 7,704 | 10,664 | |||||||||||||||||
Total assets | $ | 9,710 | $ | 11,701 | $ | (234 | ) | $ | (73 | ) | $ | 9,476 | $ | 11,628 | ||||||||||
Accrued expenses and other liabilities | $ | (404 | ) | $ | (253 | ) | $ | 234 | $ | 72 | $ | (170 | ) | $ | (181 | ) | ||||||||
Other liabilities | (196 | ) | (1 | ) | — | 1 | (196 | ) | — | |||||||||||||||
Total liabilities | $ | (600 | ) | $ | (254 | ) | $ | 234 | $ | 73 | $ | (366 | ) | $ | (181 | ) |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
Statement of Operations Classification | Realized | Unrealized | Realized | Unrealized | |||||||||||
2017 | |||||||||||||||
Gains (losses) on commodity derivatives, net | $ | 260 | $ | (53 | ) | $ | 960 | $ | (1,010 | ) | |||||
Interest expense | — | (1,693 | ) | (70 | ) | (2,010 | ) | ||||||||
Direct operating expenses | (218 | ) | — | (475 | ) | — | |||||||||
Total | $ | 42 | $ | (1,746 | ) | $ | 415 | $ | (3,020 | ) | |||||
2016 | |||||||||||||||
Losses on commodity derivatives, net | $ | (388 | ) | $ | (979 | ) | $ | (776 | ) | $ | (829 | ) | |||
Interest expense | (32 | ) | (2,510 | ) | (32 | ) | (4,041 | ) | |||||||
Direct operating expenses | (231 | ) | — | (451 | ) | — | |||||||||
Total | $ | (651 | ) | $ | (3,489 | ) | $ | (1,259 | ) | $ | (4,870 | ) |
|
Useful Life (in years) | June 30, 2017 | December 31, 2016 | |||||||
Land | Infinite | $ | 23,098 | $ | 23,520 | ||||
Construction in progress | N/A | 46,657 | 131,448 | ||||||
Buildings and improvements | 4 to 40 | 24,280 | 24,225 | ||||||
Transportation equipment | 5 to 15 | 45,090 | 44,060 | ||||||
Processing and treating plants (1) | 8 to 40 | 141,109 | 120,977 | ||||||
Pipelines, compressors and right-of-way (1) | 3 to 40 | 909,963 | 804,815 | ||||||
Storage | 3 to 40 | 210,291 | 210,579 | ||||||
Equipment | 3 to 31 | 124,607 | 102,409 | ||||||
Total property, plant and equipment | 1,525,095 | 1,462,033 | |||||||
Accumulated depreciation (1) | (358,674 | ) | (317,030 | ) | |||||
Property, plant and equipment, net | $ | 1,166,421 | $ | 1,145,003 |
|
June 30, 2017 | December 31, 2016 | ||||||
Liquid Pipelines and Services (1) | $ | 113,669 | $ | 113,669 | |||
Terminalling Services (1) | 88,466 | 88,466 | |||||
Propane Marketing Services | 15,363 | 15,363 | |||||
Total | $ | 217,498 | $ | 217,498 |
June 30, 2017 | |||||||||||
Gross carrying amount | Accumulated amortization | Net carrying amount | |||||||||
Customer relationships | $ | 133,503 | $ | (35,834 | ) | $ | 97,669 | ||||
Customer contracts | 98,844 | (43,142 | ) | 55,702 | |||||||
Dedicated acreage | 53,350 | (5,328 | ) | 48,022 | |||||||
Collaborative arrangements | 11,884 | (990 | ) | 10,894 | |||||||
Noncompete agreements | 3,423 | (3,250 | ) | 173 | |||||||
Other | 751 | (221 | ) | 530 | |||||||
Total | $ | 301,755 | $ | (88,765 | ) | $ | 212,990 | ||||
December 31, 2016 | |||||||||||
Gross carrying amount | Accumulated amortization | Net carrying amount | |||||||||
Customer relationships | $ | 133,503 | $ | (31,471 | ) | $ | 102,032 | ||||
Customer contracts | 95,594 | (33,414 | ) | 62,180 | |||||||
Dedicated acreage | 53,350 | (4,439 | ) | 48,911 | |||||||
Collaborative arrangements | 11,884 | (601 | ) | 11,283 | |||||||
Noncompete agreements | 3,423 | (3,086 | ) | 337 | |||||||
Other | 751 | (211 | ) | 540 | |||||||
Total | $ | 298,505 | $ | (73,222 | ) | $ | 225,283 |
|
Delta House (1) | Emerald Transactions (2) | ||||||||||||||||||||||||||||||
FPS | OGL | Destin | Tri-States | Okeanos | Wilprise | MPOG (3) | Total | ||||||||||||||||||||||||
Ownership % at December 31, 2016 and June 30, 2017 | 20.1 | % | 20.1 | % | 49.7 | % | 16.7 | % | 66.7 | % | 25.3 | % | 66.7 | % | |||||||||||||||||
Balances at December 31, 2016 | $ | 64,483 | $ | 25,450 | $ | 110,882 | $ | 55,022 | $ | 27,059 | $ | 4,944 | $ | 4,148 | $ | 291,988 | |||||||||||||||
Earnings in unconsolidated affiliates | 15,529 | 6,571 | 5,116 | 2,161 | 3,692 | 408 | (523 | ) | 32,954 | ||||||||||||||||||||||
Distributions | (8,753 | ) | (7,137 | ) | (12,119 | ) | (2,626 | ) | (6,667 | ) | (392 | ) | (700 | ) | (38,394 | ) | |||||||||||||||
Balances at June 30, 2017 | $ | 71,259 | $ | 24,884 | $ | 103,879 | $ | 54,557 | $ | 24,084 | $ | 4,960 | $ | 2,925 | $ | 286,548 |
Balance Sheets: | June 30, 2017 | December 31, 2016 | |||||
Current assets | $ | 105,211 | $ | 120,167 | |||
Non-current assets | 1,337,201 | 1,369,492 | |||||
Current liabilities | 121,966 | 133,085 | |||||
Non-current liabilities | $ | 489,080 | $ | 541,312 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
Statements of Operations: | 2017 | 2016 | 2017 | 2016 | |||||||||||
Revenue | $ | 105,373 | $ | 89,541 | $ | 203,366 | $ | 184,757 | |||||||
Gross profit | 96,442 | 83,045 | 185,075 | 169,668 | |||||||||||
Net income | $ | 76,414 | $ | 67,937 | $ | 145,532 | $ | 136,387 |
|
June 30, 2017 | December 31, 2016 | |||||||
Due to related parties | $ | 15,694 | $ | 4,072 | ||||
Accrued interest | 8,470 | 5,743 | ||||||
Legal accrual | 8,192 | — | ||||||
Capital expenditures | 7,240 | 14,499 | ||||||
Convertible preferred unit distributions | 6,735 | 7,103 | ||||||
Current portion of asset retirement obligation | 6,495 | 6,499 | ||||||
Additional Blackwater acquisition consideration | 5,000 | 5,000 | ||||||
Employee compensation | 4,967 | 10,804 | ||||||
Taxes payable | 3,902 | 1,688 | ||||||
Royalties payable | 3,536 | 3,926 | ||||||
Customer deposits | 3,092 | 3,080 | ||||||
Gas imbalances payable | 1,580 | 1,098 | ||||||
Transaction costs | 1,179 | 3,000 | ||||||
Deferred financing costs | — | 2,743 | ||||||
Recoverable gas costs | 238 | 1,126 | ||||||
Other | 10,706 | 10,903 | ||||||
Total accrued expenses and other current liabilities | $ | 87,026 | $ | 81,284 |
|
Non-current balance | $ | 44,363 | |
Current balance | 6,499 | ||
Balances at December 31, 2016 | $ | 50,862 | |
Expenditures | (49 | ) | |
Accretion expense | 984 | ||
Balances at June 30, 2017 | $ | 51,797 | |
Less: current portion | 6,495 | ||
Noncurrent asset retirement obligation | $ | 45,302 |
|
June 30, 2017 | December 31, 2016 | ||||||
Revolving credit facility | $ | 678,042 | $ | 888,250 | |||
8.5% Senior unsecured notes, due 2021 | 300,000 | 300,000 | |||||
3.77% Senior secured notes, due 2031 (non-recourse) | 58,922 | 60,000 | |||||
Other debt (2) | 685 | 3,809 | |||||
Total debt obligations | 1,037,649 | 1,252,059 | |||||
Unamortized debt issuance costs (1) | (9,776 | ) | (11,036 | ) | |||
Total debt | 1,027,873 | 1,241,023 | |||||
Less: Current portion, including unamortized debt issuance costs | (1,556 | ) | (5,485 | ) | |||
Long term debt | $ | 1,026,317 | $ | 1,235,538 |
|
Series A | Series C | Series D | Total | ||||||||||||||||||
Units | $ | Units | $ | Units | $ | $ | |||||||||||||||
December 31, 2016 | 10,107 | $ | 181,386 | 8,792 | $ | 118,229 | 2,333 | $ | 34,475 | $ | 334,090 | ||||||||||
Paid in kind unit distributions | 293 | 4,105 | — | — | — | — | 4,105 | ||||||||||||||
June 30, 2017 | 10,400 | $ | 185,491 | 8,792 | $ | 118,229 | 2,333 | $ | 34,475 | $ | 338,195 |
|
General Partner Interest | Limited Partner Interest | |||||
Balances at December 31, 2016 | 680 | 51,351 | ||||
LTIP vesting | — | 373 | ||||
Issuance of GP units | 273 | — | ||||
Issuance of common units | — | 21 | ||||
Balances at June 30, 2017 | 953 | 51,745 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Series A Units | ||||||||||||||||
Cash Paid | $ | 2,117 | $ | — | $ | 4,644 | $ | — | ||||||||
Accrued | 4,069 | 4,602 | 4,069 | 4,602 | ||||||||||||
Paid-in-kind units | 2,181 | 4,471 | 4,914 | 8,851 | ||||||||||||
Series C Units | ||||||||||||||||
Cash Paid | 3,627 | — | 7,254 | — | ||||||||||||
Accrued | 3,627 | 2,249 | 3,627 | 2,249 | ||||||||||||
Paid-in-kind units | — | — | — | — | ||||||||||||
Series D Units | ||||||||||||||||
Cash Paid | 963 | — | 1,925 | — | ||||||||||||
Accrued | 963 | — | 963 | — | ||||||||||||
Limited Partner Units | ||||||||||||||||
Cash Paid | 21,390 | 24,782 | 46,303 | 51,782 | ||||||||||||
General Partner Units | ||||||||||||||||
Cash Paid | 201 | 173 | 368 | 2,201 | ||||||||||||
Summary | ||||||||||||||||
Cash Paid | 28,298 | 24,955 | 60,494 | 53,983 | ||||||||||||
Accrued | 8,659 | 6,851 | 8,659 | 6,851 | ||||||||||||
Paid-in-kind units | 2,181 | 4,471 | 4,914 | 8,851 |
|
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net loss from continuing operations | $ | (27,702 | ) | $ | (9,481 | ) | $ | (56,583 | ) | $ | (19,545 | ) | |||
Less: Net income attributable to noncontrolling interests | 1,462 | 954 | 2,765 | 951 | |||||||||||
Net loss from continuing operations attributable to the Partnership | (29,164 | ) | (10,435 | ) | (59,348 | ) | (20,496 | ) | |||||||
Less: | |||||||||||||||
Distributions on Series A Units | 4,069 | 4,602 | 8,367 | 9,073 | |||||||||||
Distributions on Series C Units | 3,627 | 2,249 | 7,254 | 2,249 | |||||||||||
Distributions on Series D Units | 963 | — | 1,925 | — | |||||||||||
General partner's distribution | 277 | 173 | 476 | 2,201 | |||||||||||
General partner's share in undistributed loss | (784 | ) | (400 | ) | (1,541 | ) | (818 | ) | |||||||
Net loss from continuing operations attributable to Limited Partners | (37,316 | ) | (17,059 | ) | (75,829 | ) | (33,201 | ) | |||||||
Net loss from discontinued operations attributable to Limited Partners | — | — | — | (539 | ) | ||||||||||
Net loss attributable to Limited Partners | $ | (37,316 | ) | $ | (17,059 | ) | $ | (75,829 | ) | $ | (33,740 | ) | |||
Weighted average number of common units used in computation of Limited Partners' net loss per common unit - basic and diluted | 51,870 | 51,090 | 51,870 | 51,090 | |||||||||||
Limited Partners' net loss from continuing operations per unit | $ | (0.72 | ) | $ | (0.33 | ) | $ | (1.46 | ) | $ | (0.65 | ) | |||
Limited Partners' net loss from discontinued operations per unit | — | — | — | (0.01 | ) | ||||||||||
Limited Partners' net loss per common unit (1) | $ | (0.72 | ) | $ | (0.33 | ) | $ | (1.46 | ) | $ | (0.66 | ) |
|
Units | Weighted-Average Grant Date Fair Value Per Unit | ||||||
Outstanding units at December 31, 2016 | 1,558,835 | $ | 6.98 | ||||
Granted | 2,000 | 11.20 | |||||
Forfeited | (7,643 | ) | 21.46 | ||||
Vested | (479,130 | ) | 10.32 | ||||
Outstanding units at June 30, 2017 | 1,074,062 | $ | 5.39 |
|
|
|
Six months ended June 30, | |||||||
2017 | 2016 | ||||||
Supplemental non-cash information | |||||||
Investing | |||||||
Increase (decrease) in accrued property, plant and equipment purchases | $ | (7,259 | ) | $ | 4,856 | ||
Financing | |||||||
Contributions from an affiliate holding limited partner interests | 4,000 | 4,000 | |||||
Issuance of Series C Units and Warrant in connection with the Emerald Transactions | — | 120,000 | |||||
Accrued distributions on convertible preferred units | 8,659 | 6,851 | |||||
Paid-in-kind distributions on convertible preferred units | 4,914 | 8,851 | |||||
Cancellation of escrow units | — | 6,817 | |||||
Accrued distribution from unconsolidated affiliates | — | 4,360 |
|
• | Gas Gathering and Processing Services. Our Gas Gathering and Processing Services segment provides “wellhead-to-market” services to producers of natural gas and natural gas liquids, which include transporting raw natural gas from various receipt points through gathering systems, treating the raw natural gas, processing raw natural gas to separate the NGLs from the natural gas, fractionating NGLs, and selling or delivering pipeline-quality natural gas and NGLs to various markets and pipeline systems. |
• | Liquid Pipelines and Services. Our Liquid Pipelines and Services segment provides transportation, purchase and sales of crude oil from various receipt points including lease automatic customer transfer (“LACT”) facilities and deliveries to various markets. |
• | Natural Gas Transportation Services. Our Natural Gas Transportation Services segment transports and delivers natural gas from producing wells, receipt points, or pipeline interconnects for shippers and other customers, which include local distribution companies (“LDCs”), utilities and industrial, commercial and power generation customers. |
• | Offshore Pipelines and Services. Our Offshore Pipelines and Services segment gathers and transports natural gas and crude oil from various receipt points to other pipeline interconnects, onshore facilities and other delivery points. |
• | Terminalling Services. Our Terminalling Services segment provides above-ground leasable storage operations at our marine terminals that support various commercial customers, including commodity brokers, refiners and chemical manufacturers to store a range of products and also includes crude oil storage in Cushing, Oklahoma and refined products terminals in Texas and Arkansas. |
• | Propane Marketing Services. Our Propane Marketing Services segment gathers, transports and sells natural gas liquids (NGLs). This is accomplished through cylinder tank exchange, sales through retail, commercial and wholesale distribution and through a fleet of trucks operating in the Eagle Ford and Permian basin areas. |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Reconciliation of Segment Gross Margin to Net loss attributable to the Partnership: | |||||||||||||||
Gas Gathering and Processing Services segment gross margin | $ | 12,651 | $ | 13,337 | $ | 23,902 | $ | 24,957 | |||||||
Liquid Pipelines and Services segment gross margin | 6,683 | 9,432 | 13,152 | 15,284 | |||||||||||
Natural Gas Transportation Services segment gross margin | 5,631 | 3,843 | 11,750 | 9,406 | |||||||||||
Offshore Pipelines and Services segment gross margin | 25,623 | 20,558 | 51,426 | 33,819 | |||||||||||
Terminalling Services segment gross margin (1) | 10,760 | 11,586 | 21,920 | 21,030 | |||||||||||
Propane Marketing Services segment gross margin | 17,952 | 22,316 | 37,254 | 50,621 | |||||||||||
Total Segment Gross Margin | 79,300 | 81,072 | 159,404 | 155,117 | |||||||||||
Less: | |||||||||||||||
Other direct operating expenses (1) | 28,886 | 29,579 | 55,902 | 57,545 | |||||||||||
Plus: | |||||||||||||||
Gain (loss) on commodity derivatives, net | 207 | (1,367 | ) | (50 | ) | (1,605 | ) | ||||||||
Less: | |||||||||||||||
Corporate expenses | 30,084 | 22,281 | 62,928 | 43,382 | |||||||||||
Depreciation, amortization and accretion expense | 30,170 | 26,398 | 59,521 | 51,439 | |||||||||||
(Gain) loss on sale of assets, net | 52 | 478 | (176 | ) | 1,600 | ||||||||||
Interest expense | 17,152 | 10,610 | 35,118 | 18,912 | |||||||||||
Other income | (72 | ) | (496 | ) | (86 | ) | (527 | ) | |||||||
Other (income) expense, net | 136 | (365 | ) | 806 | (730 | ) | |||||||||
Income tax expense | 801 | 701 | 1,924 | 1,436 | |||||||||||
Loss from discontinued operations, net of tax | — | — | — | 539 | |||||||||||
Net income attributable to noncontrolling interest | 1,462 | 954 | 2,765 | 951 | |||||||||||
Net loss attributable to the Partnership | $ | (29,164 | ) | $ | (10,435 | ) | $ | (59,348 | ) | $ | (21,035 | ) |
(1) | Other direct operating expenses include Gas Gathering and Processing Services segment direct operating expenses of $8.0 million and $8.9 million, respectively, Liquid Pipelines and Services segment direct operating expenses of $1.8 million and $2.2 million, respectively, Natural Gas Transportation Services segment direct operating expenses of $1.9 million and $2.0 million, respectively, Offshore Pipelines and Services segment direct operating expenses of $3.5 million and $2.8 million, respectively, and Propane Marketing Services segment direct operating expenses of $13.6 million and $13.6 million, respectively, for the three months ended June 30, 2017 and 2016. Direct operating expenses related to our Terminalling Services segment of $3.0 million and $2.4 million for the three months ended June 30, 2017 and 2016, respectively, are included within the calculation of Terminalling Services segment gross margin. |
Three months ended June 30, 2017 | |||||||||||||||||||||||||||
Gas Gathering and Processing Services | Liquid Pipelines and Services | Natural Gas Transportation Services | Offshore Pipelines and Services | Terminalling Services | Propane Marketing Services | Total | |||||||||||||||||||||
Revenue | $ | 39,307 | $ | 82,303 | $ | 11,397 | $ | 12,139 | $ | 15,831 | $ | 32,449 | $ | 193,426 | |||||||||||||
Gain (loss) on commodity derivatives, net | (98 | ) | 297 | — | — | — | 8 | 207 | |||||||||||||||||||
Total revenue | 39,209 | 82,600 | 11,397 | 12,139 | 15,831 | 32,457 | 193,633 | ||||||||||||||||||||
Earnings in unconsolidated affiliates | — | 1,482 | — | 16,070 | — | — | 17,552 | ||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||
Cost of Sales | 26,582 | 77,332 | 5,678 | 2,586 | 2,073 | 14,565 | 128,816 | ||||||||||||||||||||
Direct operating expenses | 8,045 | 1,833 | 1,928 | 3,490 | 2,998 | 13,590 | 31,884 | ||||||||||||||||||||
Corporate expenses | 30,084 | ||||||||||||||||||||||||||
Depreciation, amortization and accretion expense | 30,170 | ||||||||||||||||||||||||||
Loss on sale of assets, net | 52 | ||||||||||||||||||||||||||
Total operating expenses | 221,006 | ||||||||||||||||||||||||||
Interest expense | 17,152 | ||||||||||||||||||||||||||
Other income | (72 | ) | |||||||||||||||||||||||||
Loss from continuing operations before taxes | (26,901 | ) | |||||||||||||||||||||||||
Income tax expense | 801 | ||||||||||||||||||||||||||
Net loss | (27,702 | ) | |||||||||||||||||||||||||
Less: Net income attributable to non-controlling interests | 1,462 | ||||||||||||||||||||||||||
Net loss attributable to the Partnership | $ | (29,164 | ) | ||||||||||||||||||||||||
Segment gross margin | $ | 12,651 | $ | 6,683 | $ | 5,631 | $ | 25,623 | $ | 10,760 | $ | 17,952 |
Three months ended June 30, 2016 | ||||||||||||||||||||||||||||
Gas Gathering and Processing Services | Liquid Pipelines and Services | Natural Gas Transportation Services | Offshore Pipelines and Services | Terminalling Services | Propane Marketing Services | Total | ||||||||||||||||||||||
Revenue | $ | 30,710 | $ | 85,415 | $ | 7,877 | $ | 10,645 | $ | 17,815 | $ | 34,741 | $ | 187,203 | ||||||||||||||
Gain (loss) on commodity derivatives, net | (763 | ) | (716 | ) | — | (2 | ) | (260 | ) | — | 374 | (1,367 | ) | |||||||||||||||
Total revenue | 29,947 | 84,699 | 7,877 | 10,643 | 17,555 | 35,115 | 185,836 | |||||||||||||||||||||
Earnings in unconsolidated affiliates | — | 1,009 | — | 10,693 | — | — | 11,702 | |||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||
Cost of Sales | 17,162 | 76,992 | 4,026 | 778 | 3,542 | 12,580 | 115,080 | |||||||||||||||||||||
Direct operating expenses | 8,945 | 2,235 | 1,963 | 2,802 | 2,388 | 13,634 | 31,967 | |||||||||||||||||||||
Corporate expenses | 22,281 | |||||||||||||||||||||||||||
Depreciation, amortization and accretion expense | 26,398 | |||||||||||||||||||||||||||
Loss on sale of assets, net | 478 | |||||||||||||||||||||||||||
Total operating expenses | 196,204 | |||||||||||||||||||||||||||
Interest expense | 10,610 | |||||||||||||||||||||||||||
Other income | (496 | ) | ||||||||||||||||||||||||||
Loss from continuing operations before taxes | (8,780 | ) | ||||||||||||||||||||||||||
Income tax expense | 701 | |||||||||||||||||||||||||||
Loss from continuing operation | (9,481 | ) | ||||||||||||||||||||||||||
Loss from discontinued operations, net of tax | $ | — | ||||||||||||||||||||||||||
Net loss | (9,481 | ) | ||||||||||||||||||||||||||
Less: Net income attributable to non-controlling interests | $ | 954 | ||||||||||||||||||||||||||
Net loss attributable to the Partnership | $ | (10,435 | ) | |||||||||||||||||||||||||
Segment gross margin | $ | 13,337 | $ | 9,432 | $ | 3,843 | $ | 20,558 | $ | 11,586 | $ | 22,316 |
Six months ended June 30, 2017 | |||||||||||||||||||||||||||
Gas Gathering and Processing Services | Liquid Pipelines and Services | Natural Gas Transportation Services | Offshore Pipelines and Services | Terminalling Services | Propane Marketing Services | Total | |||||||||||||||||||||
Revenue | $ | 73,714 | $ | 164,342 | $ | 23,835 | $ | 26,970 | $ | 34,457 | $ | 69,997 | $ | 393,315 | |||||||||||||
Gain (loss) on commodity derivatives, net | (105 | ) | 669 | — | — | — | (614 | ) | (50 | ) | |||||||||||||||||
Total revenue | 73,609 | 165,011 | 23,835 | 26,970 | 34,457 | 69,383 | 393,265 | ||||||||||||||||||||
Earnings in unconsolidated affiliates | — | 2,569 | — | 30,385 | — | — | 32,954 | ||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||
Cost of Sales | 49,769 | 154,409 | 11,938 | 5,929 | 6,466 | 33,090 | 261,601 | ||||||||||||||||||||
Direct operating expenses | 16,110 | 3,906 | 3,163 | 6,070 | 6,071 | 26,652 | 61,972 | ||||||||||||||||||||
Corporate expenses | 62,928 | ||||||||||||||||||||||||||
Depreciation, amortization and accretion expense | 59,521 | ||||||||||||||||||||||||||
Gain on sale of assets, net | (176 | ) | |||||||||||||||||||||||||
Total operating expenses | 445,846 | ||||||||||||||||||||||||||
Interest expense | 35,118 | ||||||||||||||||||||||||||
Other income | (86 | ) | |||||||||||||||||||||||||
Loss from continuing operations before taxes | (54,659 | ) | |||||||||||||||||||||||||
Income tax expense | 1,924 | ||||||||||||||||||||||||||
Net loss | (56,583 | ) | |||||||||||||||||||||||||
Less: Net income attributable to non-controlling interests | 2,765 | ||||||||||||||||||||||||||
Net loss attributable to the Partnership | $ | (59,348 | ) | ||||||||||||||||||||||||
Segment gross margin | $ | 23,902 | $ | 13,152 | $ | 11,750 | $ | 51,426 | $ | 21,920 | $ | 37,254 |
Six months ended June 30, 2016 | |||||||||||||||||||||||||||
Gas Gathering and Processing Services | Liquid Pipelines and Services | Natural Gas Transportation Services | Offshore Pipelines and Services | Terminalling Services | Propane Marketing Services | Total | |||||||||||||||||||||
Revenue | $ | 54,004 | $ | 129,930 | $ | 17,672 | $ | 17,645 | $ | 32,210 | $ | 79,356 | $ | 330,817 | |||||||||||||
Gain (loss) on commodity derivatives, net | (866 | ) | (948 | ) | — | (2 | ) | (436 | ) | 647 | (1,605 | ) | |||||||||||||||
Total revenue | 53,138 | 128,982 | 17,672 | 17,643 | 31,774 | 80,003 | 329,212 | ||||||||||||||||||||
Earnings in unconsolidated affiliates | 1,009 | 18,036 | 19,045 | ||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||
Cost of Sales | 28,868 | 115,645 | 8,250 | 1,860 | 5,747 | 28,648 | 189,018 | ||||||||||||||||||||
Direct operating expenses | 17,492 | 4,701 | 3,190 | 5,055 | 4,997 | 27,107 | 62,542 | ||||||||||||||||||||
Corporate expenses | 43,382 | ||||||||||||||||||||||||||
Depreciation, amortization and accretion expense | 51,439 | ||||||||||||||||||||||||||
Loss on sale of assets, net | 1,600 | ||||||||||||||||||||||||||
Total operating expenses | 347,981 | ||||||||||||||||||||||||||
Interest expense | 18,912 | ||||||||||||||||||||||||||
Other income | (527 | ) | |||||||||||||||||||||||||
Loss from continuing operations before taxes | (18,109 | ) | |||||||||||||||||||||||||
Income tax expense | 1,436 | ||||||||||||||||||||||||||
Loss from continuing operation | (19,545 | ) | |||||||||||||||||||||||||
Loss from discontinued operations, net of tax | (539 | ) | |||||||||||||||||||||||||
Net loss | (20,084 | ) | |||||||||||||||||||||||||
Less: Net income attributable to non-controlling interests | $ | 951 | |||||||||||||||||||||||||
Net loss attributable to the Partnership | $ | (21,035 | ) | ||||||||||||||||||||||||
Segment gross margin | $ | 24,957 | $ | 15,284 | $ | 9,406 | $ | 33,819 | $ | 21,030 | $ | 50,621 |
June 30, | December 31, | ||||||
2017 | 2016 | ||||||
Segment assets: | |||||||
Gas Gathering and Processing Services | $ | 524,905 | $ | 530,889 | |||
Liquid Pipelines and Services | 433,618 | 422,636 | |||||
Offshore Pipelines and Services (2) | 369,137 | 400,193 | |||||
Natural Gas Transportation Services | 227,466 | 221,604 | |||||
Terminalling Services (2) | 281,016 | 299,534 | |||||
Propane Marketing Services | 130,731 | 140,864 | |||||
Other (1) | 85,069 | 333,601 | |||||
Total Assets | $ | 2,051,942 | $ | 2,349,321 |
|
|
|
Purchase Price Allocation | |||
Property, plant and equipment: | |||
Pipelines | $ | 12,266 | |
Equipment | 16,484 | ||
Total property, plant and equipment | 28,750 | ||
Intangible assets | 3,250 | ||
Total cash consideration | $ | 32,000 |
Six Months Ended | |||||||
June 30, 2017 | June 30, 2016 | ||||||
Revenue | $ | 396,254 | $ | 333,837 | |||
Income (loss) from continuing operations | $ | (56,407 | ) | $ | (17,962 | ) |
|
June 30, 2017 | December 31, 2016 | |||||||
Crude oil | $ | 2,741 | $ | 1,216 | ||||
NGLs | 3,207 | 3,482 | ||||||
Refined products | 413 | 291 | ||||||
Materials, supplies and equipment | 1,744 | 1,787 | ||||||
Total inventory | $ | 8,105 | $ | 6,776 |
|
June 30, 2017 | December 31, 2016 | ||||||
Prepaid insurance | $ | 5,109 | $ | 9,702 | |||
Insurance receivables | 6,162 | 2,895 | |||||
Due from related parties | 20,853 | 4,805 | |||||
Other receivables | 2,363 | 2,998 | |||||
Risk management assets | 1,772 | 964 | |||||
Other assets | 3,396 | 6,303 | |||||
Total other current assets | $ | 39,655 | $ | 27,667 |
|
Notional Amount | Term | As of June 30, 2017 | As of December 31, 2016 | |||||
$100,000 | July 1, 2017 through December 29, 2017 | $ | 119 | $ | — | |||
$100,000 | December 29, 2017 through January 29, 2019 | 208 | — | |||||
$200,000 | July 1, 2017 through September 3, 2019 | 1,711 | 1,912 | |||||
$100,000 | January 1, 2018 through December 31, 2021 | 2,385 | 3,090 | |||||
$150,000 | January 1, 2018 through December 31, 2022 | 3,944 | 5,219 | |||||
$ | 8,367 | $ | 10,221 |
June 30, 2017 | December 31, 2016 | |||||||||
Commodity Swaps | Volume | Maturity | Volume | Maturity | ||||||
Propane Fixed Price (gallons) | 10,892,201 | July 1, 2017 - December 31, 2019 | 4,364,880 | January 31, 2017 - November 30, 2018 | ||||||
Crude Oil Fixed Price (barrels) | 68,000 | July 1, 2017 - July 31, 2017 | — | — | ||||||
Crude Oil Basis (barrels) | — | — | 180,000 | January 25, 2017- March 25, 2017 |
Asset Derivatives | Liability Derivatives | ||||||||||||||||
Type | Balance Sheet Classification | June 30, 2017 | December 31, 2016 | June 30, 2017 | December 31, 2016 | ||||||||||||
Commodity swaps | Other current assets | $ | 234 | $ | 607 | $ | — | $ | — | ||||||||
Commodity swaps | Accrued expenses and other current liabilities | — | — | (404 | ) | (1 | ) | ||||||||||
Commodity swaps | Risk management assets - long term | — | 37 | — | — | ||||||||||||
Commodity swaps | Other liabilities | — | — | (196 | ) | (1 | ) | ||||||||||
Interest rate swaps | Other current assets | 663 | — | — | — | ||||||||||||
Interest rate swaps | Accrued expenses and other current liabilities | — | — | — | (252 | ) | |||||||||||
Interest rate swaps | Risk management assets- long term | 7,704 | 10,628 | — | — | ||||||||||||
Weather derivatives | Other current assets | $ | 1,110 | $ | 429 | $ | — | $ | — |
Gross Risk Management Position | Netting Adjustments | Net Risk Management Position | ||||||||||||||||||||||
Balance Sheet Classification | June 30, 2017 | December 31, 2016 | June 30, 2017 | December 31, 2016 | June 30, 2017 | December 31, 2016 | ||||||||||||||||||
Other current assets | $ | 2,006 | $ | 1,036 | $ | (234 | ) | $ | (72 | ) | $ | 1,772 | $ | 964 | ||||||||||
Risk management assets- long term | 7,704 | 10,665 | — | (1 | ) | 7,704 | 10,664 | |||||||||||||||||
Total assets | $ | 9,710 | $ | 11,701 | $ | (234 | ) | $ | (73 | ) | $ | 9,476 | $ | 11,628 | ||||||||||
Accrued expenses and other liabilities | $ | (404 | ) | $ | (253 | ) | $ | 234 | $ | 72 | $ | (170 | ) | $ | (181 | ) | ||||||||
Other liabilities | (196 | ) | (1 | ) | — | 1 | (196 | ) | — | |||||||||||||||
Total liabilities | $ | (600 | ) | $ | (254 | ) | $ | 234 | $ | 73 | $ | (366 | ) | $ | (181 | ) |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
Statement of Operations Classification | Realized | Unrealized | Realized | Unrealized | |||||||||||
2017 | |||||||||||||||
Gains (losses) on commodity derivatives, net | $ | 260 | $ | (53 | ) | $ | 960 | $ | (1,010 | ) | |||||
Interest expense | — | (1,693 | ) | (70 | ) | (2,010 | ) | ||||||||
Direct operating expenses | (218 | ) | — | (475 | ) | — | |||||||||
Total | $ | 42 | $ | (1,746 | ) | $ | 415 | $ | (3,020 | ) | |||||
2016 | |||||||||||||||
Losses on commodity derivatives, net | $ | (388 | ) | $ | (979 | ) | $ | (776 | ) | $ | (829 | ) | |||
Interest expense | (32 | ) | (2,510 | ) | (32 | ) | (4,041 | ) | |||||||
Direct operating expenses | (231 | ) | — | (451 | ) | — | |||||||||
Total | $ | (651 | ) | $ | (3,489 | ) | $ | (1,259 | ) | $ | (4,870 | ) |
|
Useful Life (in years) | June 30, 2017 | December 31, 2016 | |||||||
Land | Infinite | $ | 23,098 | $ | 23,520 | ||||
Construction in progress | N/A | 46,657 | 131,448 | ||||||
Buildings and improvements | 4 to 40 | 24,280 | 24,225 | ||||||
Transportation equipment | 5 to 15 | 45,090 | 44,060 | ||||||
Processing and treating plants (1) | 8 to 40 | 141,109 | 120,977 | ||||||
Pipelines, compressors and right-of-way (1) | 3 to 40 | 909,963 | 804,815 | ||||||
Storage | 3 to 40 | 210,291 | 210,579 | ||||||
Equipment | 3 to 31 | 124,607 | 102,409 | ||||||
Total property, plant and equipment | 1,525,095 | 1,462,033 | |||||||
Accumulated depreciation (1) | (358,674 | ) | (317,030 | ) | |||||
Property, plant and equipment, net | $ | 1,166,421 | $ | 1,145,003 |
|
June 30, 2017 | December 31, 2016 | ||||||
Liquid Pipelines and Services (1) | $ | 113,669 | $ | 113,669 | |||
Terminalling Services (1) | 88,466 | 88,466 | |||||
Propane Marketing Services | 15,363 | 15,363 | |||||
Total | $ | 217,498 | $ | 217,498 |
June 30, 2017 | |||||||||||
Gross carrying amount | Accumulated amortization | Net carrying amount | |||||||||
Customer relationships | $ | 133,503 | $ | (35,834 | ) | $ | 97,669 | ||||
Customer contracts | 98,844 | (43,142 | ) | 55,702 | |||||||
Dedicated acreage | 53,350 | (5,328 | ) | 48,022 | |||||||
Collaborative arrangements | 11,884 | (990 | ) | 10,894 | |||||||
Noncompete agreements | 3,423 | (3,250 | ) | 173 | |||||||
Other | 751 | (221 | ) | 530 | |||||||
Total | $ | 301,755 | $ | (88,765 | ) | $ | 212,990 | ||||
December 31, 2016 | |||||||||||
Gross carrying amount | Accumulated amortization | Net carrying amount | |||||||||
Customer relationships | $ | 133,503 | $ | (31,471 | ) | $ | 102,032 | ||||
Customer contracts | 95,594 | (33,414 | ) | 62,180 | |||||||
Dedicated acreage | 53,350 | (4,439 | ) | 48,911 | |||||||
Collaborative arrangements | 11,884 | (601 | ) | 11,283 | |||||||
Noncompete agreements | 3,423 | (3,086 | ) | 337 | |||||||
Other | 751 | (211 | ) | 540 | |||||||
Total | $ | 298,505 | $ | (73,222 | ) | $ | 225,283 |
|
Delta House (1) | Emerald Transactions (2) | ||||||||||||||||||||||||||||||
FPS | OGL | Destin | Tri-States | Okeanos | Wilprise | MPOG (3) | Total | ||||||||||||||||||||||||
Ownership % at December 31, 2016 and June 30, 2017 | 20.1 | % | 20.1 | % | 49.7 | % | 16.7 | % | 66.7 | % | 25.3 | % | 66.7 | % | |||||||||||||||||
Balances at December 31, 2016 | $ | 64,483 | $ | 25,450 | $ | 110,882 | $ | 55,022 | $ | 27,059 | $ | 4,944 | $ | 4,148 | $ | 291,988 | |||||||||||||||
Earnings in unconsolidated affiliates | 15,529 | 6,571 | 5,116 | 2,161 | 3,692 | 408 | (523 | ) | 32,954 | ||||||||||||||||||||||
Distributions | (8,753 | ) | (7,137 | ) | (12,119 | ) | (2,626 | ) | (6,667 | ) | (392 | ) | (700 | ) | (38,394 | ) | |||||||||||||||
Balances at June 30, 2017 | $ | 71,259 | $ | 24,884 | $ | 103,879 | $ | 54,557 | $ | 24,084 | $ | 4,960 | $ | 2,925 | $ | 286,548 |
Balance Sheets: | June 30, 2017 | December 31, 2016 | |||||
Current assets | $ | 105,211 | $ | 120,167 | |||
Non-current assets | 1,337,201 | 1,369,492 | |||||
Current liabilities | 121,966 | 133,085 | |||||
Non-current liabilities | $ | 489,080 | $ | 541,312 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
Statements of Operations: | 2017 | 2016 | 2017 | 2016 | |||||||||||
Revenue | $ | 105,373 | $ | 89,541 | $ | 203,366 | $ | 184,757 | |||||||
Gross profit | 96,442 | 83,045 | 185,075 | 169,668 | |||||||||||
Net income | $ | 76,414 | $ | 67,937 | $ | 145,532 | $ | 136,387 |
|
June 30, 2017 | December 31, 2016 | |||||||
Due to related parties | $ | 15,694 | $ | 4,072 | ||||
Accrued interest | 8,470 | 5,743 | ||||||
Legal accrual | 8,192 | — | ||||||
Capital expenditures | 7,240 | 14,499 | ||||||
Convertible preferred unit distributions | 6,735 | 7,103 | ||||||
Current portion of asset retirement obligation | 6,495 | 6,499 | ||||||
Additional Blackwater acquisition consideration | 5,000 | 5,000 | ||||||
Employee compensation | 4,967 | 10,804 | ||||||
Taxes payable | 3,902 | 1,688 | ||||||
Royalties payable | 3,536 | 3,926 | ||||||
Customer deposits | 3,092 | 3,080 | ||||||
Gas imbalances payable | 1,580 | 1,098 | ||||||
Transaction costs | 1,179 | 3,000 | ||||||
Deferred financing costs | — | 2,743 | ||||||
Recoverable gas costs | 238 | 1,126 | ||||||
Other | 10,706 | 10,903 | ||||||
Total accrued expenses and other current liabilities | $ | 87,026 | $ | 81,284 |
|
Non-current balance | $ | 44,363 | |
Current balance | 6,499 | ||
Balances at December 31, 2016 | $ | 50,862 | |
Expenditures | (49 | ) | |
Accretion expense | 984 | ||
Balances at June 30, 2017 | $ | 51,797 | |
Less: current portion | 6,495 | ||
Noncurrent asset retirement obligation | $ | 45,302 |
|
June 30, 2017 | December 31, 2016 | ||||||
Revolving credit facility | $ | 678,042 | $ | 888,250 | |||
8.5% Senior unsecured notes, due 2021 | 300,000 | 300,000 | |||||
3.77% Senior secured notes, due 2031 (non-recourse) | 58,922 | 60,000 | |||||
Other debt (2) | 685 | 3,809 | |||||
Total debt obligations | 1,037,649 | 1,252,059 | |||||
Unamortized debt issuance costs (1) | (9,776 | ) | (11,036 | ) | |||
Total debt | 1,027,873 | 1,241,023 | |||||
Less: Current portion, including unamortized debt issuance costs | (1,556 | ) | (5,485 | ) | |||
Long term debt | $ | 1,026,317 | $ | 1,235,538 |
|
Series A | Series C | Series D | Total | ||||||||||||||||||
Units | $ | Units | $ | Units | $ | $ | |||||||||||||||
December 31, 2016 | 10,107 | $ | 181,386 | 8,792 | $ | 118,229 | 2,333 | $ | 34,475 | $ | 334,090 | ||||||||||
Paid in kind unit distributions | 293 | 4,105 | — | — | — | — | 4,105 | ||||||||||||||
June 30, 2017 | 10,400 | $ | 185,491 | 8,792 | $ | 118,229 | 2,333 | $ | 34,475 | $ | 338,195 |
|
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Series A Units | ||||||||||||||||
Cash Paid | $ | 2,117 | $ | — | $ | 4,644 | $ | — | ||||||||
Accrued | 4,069 | 4,602 | 4,069 | 4,602 | ||||||||||||
Paid-in-kind units | 2,181 | 4,471 | 4,914 | 8,851 | ||||||||||||
Series C Units | ||||||||||||||||
Cash Paid | 3,627 | — | 7,254 | — | ||||||||||||
Accrued | 3,627 | 2,249 | 3,627 | 2,249 | ||||||||||||
Paid-in-kind units | — | — | — | — | ||||||||||||
Series D Units | ||||||||||||||||
Cash Paid | 963 | — | 1,925 | — | ||||||||||||
Accrued | 963 | — | 963 | — | ||||||||||||
Limited Partner Units | ||||||||||||||||
Cash Paid | 21,390 | 24,782 | 46,303 | 51,782 | ||||||||||||
General Partner Units | ||||||||||||||||
Cash Paid | 201 | 173 | 368 | 2,201 | ||||||||||||
Summary | ||||||||||||||||
Cash Paid | 28,298 | 24,955 | 60,494 | 53,983 | ||||||||||||
Accrued | 8,659 | 6,851 | 8,659 | 6,851 | ||||||||||||
Paid-in-kind units | 2,181 | 4,471 | 4,914 | 8,851 |
General Partner Interest | Limited Partner Interest | |||||
Balances at December 31, 2016 | 680 | 51,351 | ||||
LTIP vesting | — | 373 | ||||
Issuance of GP units | 273 | — | ||||
Issuance of common units | — | 21 | ||||
Balances at June 30, 2017 | 953 | 51,745 |
|
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net loss from continuing operations | $ | (27,702 | ) | $ | (9,481 | ) | $ | (56,583 | ) | $ | (19,545 | ) | |||
Less: Net income attributable to noncontrolling interests | 1,462 | 954 | 2,765 | 951 | |||||||||||
Net loss from continuing operations attributable to the Partnership | (29,164 | ) | (10,435 | ) | (59,348 | ) | (20,496 | ) | |||||||
Less: | |||||||||||||||
Distributions on Series A Units | 4,069 | 4,602 | 8,367 | 9,073 | |||||||||||
Distributions on Series C Units | 3,627 | 2,249 | 7,254 | 2,249 | |||||||||||
Distributions on Series D Units | 963 | — | 1,925 | — | |||||||||||
General partner's distribution | 277 | 173 | 476 | 2,201 | |||||||||||
General partner's share in undistributed loss | (784 | ) | (400 | ) | (1,541 | ) | (818 | ) | |||||||
Net loss from continuing operations attributable to Limited Partners | (37,316 | ) | (17,059 | ) | (75,829 | ) | (33,201 | ) | |||||||
Net loss from discontinued operations attributable to Limited Partners | — | — | — | (539 | ) | ||||||||||
Net loss attributable to Limited Partners | $ | (37,316 | ) | $ | (17,059 | ) | $ | (75,829 | ) | $ | (33,740 | ) | |||
Weighted average number of common units used in computation of Limited Partners' net loss per common unit - basic and diluted | 51,870 | 51,090 | 51,870 | 51,090 | |||||||||||
Limited Partners' net loss from continuing operations per unit | $ | (0.72 | ) | $ | (0.33 | ) | $ | (1.46 | ) | $ | (0.65 | ) | |||
Limited Partners' net loss from discontinued operations per unit | — | — | — | (0.01 | ) | ||||||||||
Limited Partners' net loss per common unit (1) | $ | (0.72 | ) | $ | (0.33 | ) | $ | (1.46 | ) | $ | (0.66 | ) |
|
Units | Weighted-Average Grant Date Fair Value Per Unit | ||||||
Outstanding units at December 31, 2016 | 1,558,835 | $ | 6.98 | ||||
Granted | 2,000 | 11.20 | |||||
Forfeited | (7,643 | ) | 21.46 | ||||
Vested | (479,130 | ) | 10.32 | ||||
Outstanding units at June 30, 2017 | 1,074,062 | $ | 5.39 |
|
Six months ended June 30, | |||||||
2017 | 2016 | ||||||
Supplemental non-cash information | |||||||
Investing | |||||||
Increase (decrease) in accrued property, plant and equipment purchases | $ | (7,259 | ) | $ | 4,856 | ||
Financing | |||||||
Contributions from an affiliate holding limited partner interests | 4,000 | 4,000 | |||||
Issuance of Series C Units and Warrant in connection with the Emerald Transactions | — | 120,000 | |||||
Accrued distributions on convertible preferred units | 8,659 | 6,851 | |||||
Paid-in-kind distributions on convertible preferred units | 4,914 | 8,851 | |||||
Cancellation of escrow units | — | 6,817 | |||||
Accrued distribution from unconsolidated affiliates | — | 4,360 |
|
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Reconciliation of Segment Gross Margin to Net loss attributable to the Partnership: | |||||||||||||||
Gas Gathering and Processing Services segment gross margin | $ | 12,651 | $ | 13,337 | $ | 23,902 | $ | 24,957 | |||||||
Liquid Pipelines and Services segment gross margin | 6,683 | 9,432 | 13,152 | 15,284 | |||||||||||
Natural Gas Transportation Services segment gross margin | 5,631 | 3,843 | 11,750 | 9,406 | |||||||||||
Offshore Pipelines and Services segment gross margin | 25,623 | 20,558 | 51,426 | 33,819 | |||||||||||
Terminalling Services segment gross margin (1) | 10,760 | 11,586 | 21,920 | 21,030 | |||||||||||
Propane Marketing Services segment gross margin | 17,952 | 22,316 | 37,254 | 50,621 | |||||||||||
Total Segment Gross Margin | 79,300 | 81,072 | 159,404 | 155,117 | |||||||||||
Less: | |||||||||||||||
Other direct operating expenses (1) | 28,886 | 29,579 | 55,902 | 57,545 | |||||||||||
Plus: | |||||||||||||||
Gain (loss) on commodity derivatives, net | 207 | (1,367 | ) | (50 | ) | (1,605 | ) | ||||||||
Less: | |||||||||||||||
Corporate expenses | 30,084 | 22,281 | 62,928 | 43,382 | |||||||||||
Depreciation, amortization and accretion expense | 30,170 | 26,398 | 59,521 | 51,439 | |||||||||||
(Gain) loss on sale of assets, net | 52 | 478 | (176 | ) | 1,600 | ||||||||||
Interest expense | 17,152 | 10,610 | 35,118 | 18,912 | |||||||||||
Other income | (72 | ) | (496 | ) | (86 | ) | (527 | ) | |||||||
Other (income) expense, net | 136 | (365 | ) | 806 | (730 | ) | |||||||||
Income tax expense | 801 | 701 | 1,924 | 1,436 | |||||||||||
Loss from discontinued operations, net of tax | — | — | — | 539 | |||||||||||
Net income attributable to noncontrolling interest | 1,462 | 954 | 2,765 | 951 | |||||||||||
Net loss attributable to the Partnership | $ | (29,164 | ) | $ | (10,435 | ) | $ | (59,348 | ) | $ | (21,035 | ) |
(1) | Other direct operating expenses include Gas Gathering and Processing Services segment direct operating expenses of $8.0 million and $8.9 million, respectively, Liquid Pipelines and Services segment direct operating expenses of $1.8 million and $2.2 million, respectively, Natural Gas Transportation Services segment direct operating expenses of $1.9 million and $2.0 million, respectively, Offshore Pipelines and Services segment direct operating expenses of $3.5 million and $2.8 million, respectively, and Propane Marketing Services segment direct operating expenses of $13.6 million and $13.6 million, respectively, for the three months ended June 30, 2017 and 2016. Direct operating expenses related to our Terminalling Services segment of $3.0 million and $2.4 million for the three months ended June 30, 2017 and 2016, respectively, are included within the calculation of Terminalling Services segment gross margin. |
Three months ended June 30, 2017 | |||||||||||||||||||||||||||
Gas Gathering and Processing Services | Liquid Pipelines and Services | Natural Gas Transportation Services | Offshore Pipelines and Services | Terminalling Services | Propane Marketing Services | Total | |||||||||||||||||||||
Revenue | $ | 39,307 | $ | 82,303 | $ | 11,397 | $ | 12,139 | $ | 15,831 | $ | 32,449 | $ | 193,426 | |||||||||||||
Gain (loss) on commodity derivatives, net | (98 | ) | 297 | — | — | — | 8 | 207 | |||||||||||||||||||
Total revenue | 39,209 | 82,600 | 11,397 | 12,139 | 15,831 | 32,457 | 193,633 | ||||||||||||||||||||
Earnings in unconsolidated affiliates | — | 1,482 | — | 16,070 | — | — | 17,552 | ||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||
Cost of Sales | 26,582 | 77,332 | 5,678 | 2,586 | 2,073 | 14,565 | 128,816 | ||||||||||||||||||||
Direct operating expenses | 8,045 | 1,833 | 1,928 | 3,490 | 2,998 | 13,590 | 31,884 | ||||||||||||||||||||
Corporate expenses | 30,084 | ||||||||||||||||||||||||||
Depreciation, amortization and accretion expense | 30,170 | ||||||||||||||||||||||||||
Loss on sale of assets, net | 52 | ||||||||||||||||||||||||||
Total operating expenses | 221,006 | ||||||||||||||||||||||||||
Interest expense | 17,152 | ||||||||||||||||||||||||||
Other income | (72 | ) | |||||||||||||||||||||||||
Loss from continuing operations before taxes | (26,901 | ) | |||||||||||||||||||||||||
Income tax expense | 801 | ||||||||||||||||||||||||||
Net loss | (27,702 | ) | |||||||||||||||||||||||||
Less: Net income attributable to non-controlling interests | 1,462 | ||||||||||||||||||||||||||
Net loss attributable to the Partnership | $ | (29,164 | ) | ||||||||||||||||||||||||
Segment gross margin | $ | 12,651 | $ | 6,683 | $ | 5,631 | $ | 25,623 | $ | 10,760 | $ | 17,952 |
Three months ended June 30, 2016 | ||||||||||||||||||||||||||||
Gas Gathering and Processing Services | Liquid Pipelines and Services | Natural Gas Transportation Services | Offshore Pipelines and Services | Terminalling Services | Propane Marketing Services | Total | ||||||||||||||||||||||
Revenue | $ | 30,710 | $ | 85,415 | $ | 7,877 | $ | 10,645 | $ | 17,815 | $ | 34,741 | $ | 187,203 | ||||||||||||||
Gain (loss) on commodity derivatives, net | (763 | ) | (716 | ) | — | (2 | ) | (260 | ) | — | 374 | (1,367 | ) | |||||||||||||||
Total revenue | 29,947 | 84,699 | 7,877 | 10,643 | 17,555 | 35,115 | 185,836 | |||||||||||||||||||||
Earnings in unconsolidated affiliates | — | 1,009 | — | 10,693 | — | — | 11,702 | |||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||
Cost of Sales | 17,162 | 76,992 | 4,026 | 778 | 3,542 | 12,580 | 115,080 | |||||||||||||||||||||
Direct operating expenses | 8,945 | 2,235 | 1,963 | 2,802 | 2,388 | 13,634 | 31,967 | |||||||||||||||||||||
Corporate expenses | 22,281 | |||||||||||||||||||||||||||
Depreciation, amortization and accretion expense | 26,398 | |||||||||||||||||||||||||||
Loss on sale of assets, net | 478 | |||||||||||||||||||||||||||
Total operating expenses | 196,204 | |||||||||||||||||||||||||||
Interest expense | 10,610 | |||||||||||||||||||||||||||
Other income | (496 | ) | ||||||||||||||||||||||||||
Loss from continuing operations before taxes | (8,780 | ) | ||||||||||||||||||||||||||
Income tax expense | 701 | |||||||||||||||||||||||||||
Loss from continuing operation | (9,481 | ) | ||||||||||||||||||||||||||
Loss from discontinued operations, net of tax | $ | — | ||||||||||||||||||||||||||
Net loss | (9,481 | ) | ||||||||||||||||||||||||||
Less: Net income attributable to non-controlling interests | $ | 954 | ||||||||||||||||||||||||||
Net loss attributable to the Partnership | $ | (10,435 | ) | |||||||||||||||||||||||||
Segment gross margin | $ | 13,337 | $ | 9,432 | $ | 3,843 | $ | 20,558 | $ | 11,586 | $ | 22,316 |
Six months ended June 30, 2017 | |||||||||||||||||||||||||||
Gas Gathering and Processing Services | Liquid Pipelines and Services | Natural Gas Transportation Services | Offshore Pipelines and Services | Terminalling Services | Propane Marketing Services | Total | |||||||||||||||||||||
Revenue | $ | 73,714 | $ | 164,342 | $ | 23,835 | $ | 26,970 | $ | 34,457 | $ | 69,997 | $ | 393,315 | |||||||||||||
Gain (loss) on commodity derivatives, net | (105 | ) | 669 | — | — | — | (614 | ) | (50 | ) | |||||||||||||||||
Total revenue | 73,609 | 165,011 | 23,835 | 26,970 | 34,457 | 69,383 | 393,265 | ||||||||||||||||||||
Earnings in unconsolidated affiliates | — | 2,569 | — | 30,385 | — | — | 32,954 | ||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||
Cost of Sales | 49,769 | 154,409 | 11,938 | 5,929 | 6,466 | 33,090 | 261,601 | ||||||||||||||||||||
Direct operating expenses | 16,110 | 3,906 | 3,163 | 6,070 | 6,071 | 26,652 | 61,972 | ||||||||||||||||||||
Corporate expenses | 62,928 | ||||||||||||||||||||||||||
Depreciation, amortization and accretion expense | 59,521 | ||||||||||||||||||||||||||
Gain on sale of assets, net | (176 | ) | |||||||||||||||||||||||||
Total operating expenses | 445,846 | ||||||||||||||||||||||||||
Interest expense | 35,118 | ||||||||||||||||||||||||||
Other income | (86 | ) | |||||||||||||||||||||||||
Loss from continuing operations before taxes | (54,659 | ) | |||||||||||||||||||||||||
Income tax expense | 1,924 | ||||||||||||||||||||||||||
Net loss | (56,583 | ) | |||||||||||||||||||||||||
Less: Net income attributable to non-controlling interests | 2,765 | ||||||||||||||||||||||||||
Net loss attributable to the Partnership | $ | (59,348 | ) | ||||||||||||||||||||||||
Segment gross margin | $ | 23,902 | $ | 13,152 | $ | 11,750 | $ | 51,426 | $ | 21,920 | $ | 37,254 |
Six months ended June 30, 2016 | |||||||||||||||||||||||||||
Gas Gathering and Processing Services | Liquid Pipelines and Services | Natural Gas Transportation Services | Offshore Pipelines and Services | Terminalling Services | Propane Marketing Services | Total | |||||||||||||||||||||
Revenue | $ | 54,004 | $ | 129,930 | $ | 17,672 | $ | 17,645 | $ | 32,210 | $ | 79,356 | $ | 330,817 | |||||||||||||
Gain (loss) on commodity derivatives, net | (866 | ) | (948 | ) | — | (2 | ) | (436 | ) | 647 | (1,605 | ) | |||||||||||||||
Total revenue | 53,138 | 128,982 | 17,672 | 17,643 | 31,774 | 80,003 | 329,212 | ||||||||||||||||||||
Earnings in unconsolidated affiliates | 1,009 | 18,036 | 19,045 | ||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||
Cost of Sales | 28,868 | 115,645 | 8,250 | 1,860 | 5,747 | 28,648 | 189,018 | ||||||||||||||||||||
Direct operating expenses | 17,492 | 4,701 | 3,190 | 5,055 | 4,997 | 27,107 | 62,542 | ||||||||||||||||||||
Corporate expenses | 43,382 | ||||||||||||||||||||||||||
Depreciation, amortization and accretion expense | 51,439 | ||||||||||||||||||||||||||
Loss on sale of assets, net | 1,600 | ||||||||||||||||||||||||||
Total operating expenses | 347,981 | ||||||||||||||||||||||||||
Interest expense | 18,912 | ||||||||||||||||||||||||||
Other income | (527 | ) | |||||||||||||||||||||||||
Loss from continuing operations before taxes | (18,109 | ) | |||||||||||||||||||||||||
Income tax expense | 1,436 | ||||||||||||||||||||||||||
Loss from continuing operation | (19,545 | ) | |||||||||||||||||||||||||
Loss from discontinued operations, net of tax | (539 | ) | |||||||||||||||||||||||||
Net loss | (20,084 | ) | |||||||||||||||||||||||||
Less: Net income attributable to non-controlling interests | $ | 951 | |||||||||||||||||||||||||
Net loss attributable to the Partnership | $ | (21,035 | ) | ||||||||||||||||||||||||
Segment gross margin | $ | 24,957 | $ | 15,284 | $ | 9,406 | $ | 33,819 | $ | 21,030 | $ | 50,621 |
June 30, | December 31, | ||||||
2017 | 2016 | ||||||
Segment assets: | |||||||
Gas Gathering and Processing Services | $ | 524,905 | $ | 530,889 | |||
Liquid Pipelines and Services | 433,618 | 422,636 | |||||
Offshore Pipelines and Services (2) | 369,137 | 400,193 | |||||
Natural Gas Transportation Services | 227,466 | 221,604 | |||||
Terminalling Services (2) | 281,016 | 299,534 | |||||
Propane Marketing Services | 130,731 | 140,864 | |||||
Other (1) | 85,069 | 333,601 | |||||
Total Assets | $ | 2,051,942 | $ | 2,349,321 |
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