Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
CAUTIONARY STATEMENT FOR THE PURPOSE OF SAFE HARBOR PROVISIONS OF THE
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This Form 10-Q, including without limitation our disclosures below under the heading “OUTLOOK,” includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You can identify our forward-looking statements by the words “anticipate,” “believe,” “expect,” “plan,” “intend,” “estimate,” “project,” “projection,” “predict,” “budget,” “forecast,” “goal,” “guidance,” “target,” “could,” “should,” “may,” and similar expressions.
Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. The matters discussed in these forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results and trends to differ materially from those made, projected, or implied in or by the forward-looking statements depending on a variety of uncertainties or other factors including, but not limited to:
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the suspension, reduction, or termination of Valero’s obligation under our commercial agreements and our services and secondment agreement;
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changes in global economic conditions and the effects of the global economic downturn on Valero’s business and the business of its suppliers, customers, business partners, and credit lenders;
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a material decrease in Valero’s profitability;
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disruptions due to equipment interruption or failure at our facilities, Valero’s facilities, or third-party facilities on which our business or Valero’s business is dependent;
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the risk of contract cancellation, non-renewal, or failure to perform by Valero’s customers, and Valero’s inability to replace such contracts and/or customers;
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Valero’s and our ability to remain in compliance with the terms of its and our outstanding indebtedness;
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the timing and extent of changes in commodity prices and demand for Valero’s refined petroleum products;
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our ability to obtain credit and financing on acceptable terms in light of uncertainty and illiquidity in credit and capital markets;
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actions of customers and competitors;
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changes in our cash flows from operations;
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state and federal environmental, economic, health and safety, energy, and other policies and regulations, including those related to climate change and any changes therein, and any legal or regulatory investigations, delays, or other factors beyond our control;
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operational hazards inherent in refining operations and in transporting and storing crude oil and refined petroleum products;
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earthquakes or other natural disasters affecting operations;
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changes in capital requirements or in execution of planned capital projects;
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the availability and costs of crude oil, other refinery feedstocks, and refined petroleum products;
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changes in the cost or availability of third-party vessels, pipelines, and other means of delivering and transporting crude oil, feedstocks, and refined products;
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direct or indirect effects on our business resulting from actual or threatened terrorist incidents or acts of war;
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weather conditions affecting our or Valero’s operations or the areas in which Valero markets its refined petroleum products;
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seasonal variations in demand for refined petroleum products;
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adverse rulings, judgments, or settlements in litigation or other legal or tax matters, including unexpected environmental remediation costs in excess of any accruals, which affect us or Valero;
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risks related to labor relations and workplace safety;
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changes in insurance markets impacting costs and the level and types of coverage available; and
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political developments.
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Any one of these factors, or a combination of these factors, could materially affect our future results of operations and affect whether any forward-looking statements ultimately prove to be accurate. Our forward-looking statements are not guarantees of future performance, and actual results and future performance may differ materially from those suggested in any forward-looking statements. We do not intend to update these statements unless we are required by the securities laws to do so.
All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing. We undertake no obligation to publicly release any revisions to any such forward-looking statements that may be made to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated events.
OVERVIEW
We reported net income and net income attributable to partners of
$58.1 million
in the
first quarter
of
2017
. This compares to net income of
$35.8 million
and net income attributable to partners of
$43.3 million
in the
first quarter
of
2016
.
The increase in net income of
$22.4 million
was due primarily to $22.5 million of revenues generated by our McKee, Meraux, and Three Rivers terminals in the
first quarter
of
2017
. We acquired these terminals from Valero subsequent to the
first quarter
of
2016
. Valero was not charged for services provided by these terminals prior to our acquisition of them; therefore, the increase in net income in the
first quarter
of
2017
compared to the
first quarter
of
2016
was due primarily to the revenue associated with services provided by these terminals.
Net income attributable to partners represents our results of operations only and excludes the results of our Predecessor. Our Predecessor’s results are those that are associated with the McKee, Meraux, and Three Rivers terminals for the periods prior to the dates we acquired these businesses from Valero. We acquired these terminals subsequent to the first quarter of 2016. As a result, net income attributable to partners of
$43.3 million
in the first quarter of 2016 excludes the $7.5 million loss generated by these terminals during that period. As previously noted, the McKee, Meraux, and Three Rivers terminals did not historically charge for services provided to Valero; therefore, the results of our Predecessor include only the costs associated with those terminals. (See Note
1
of Condensed Notes to Consolidated Financial Statements for the reason that results of businesses acquired from Valero are included with our results for periods prior to their dates of acquisition.) Therefore, the increase in net income attributable to partners of
$14.8 million
in the
first quarter
of
2017
compared to the
first quarter
of
2016
is due primarily to the operating results generated by
our McKee, Meraux, and Three Rivers terminals in the first quarter of 2017. The increase is also partially attributable to the results of the Red River crude system that we acquired in January 2017 as noted below.
Effective
January 18, 2017
, we acquired a
40
percent undivided interest in (i) the newly constructed Hewitt segment of Plains’ Red River pipeline, (ii)
two
150,000
shell barrel capacity tanks located at Hewitt Station, and (iii) a pipeline connection from Hewitt Station to Wasson Station, collectively referred to as the Red River crude system, for total cash consideration of
$71.8 million
. The pipeline supports Valero’s Ardmore Refinery and began supplying crude oil to Valero in January 2017.
Additional analysis of the changes in the components of net income is provided below under “RESULTS OF OPERATIONS.”
OUTLOOK
Because our operating revenues are generated from fee-based arrangements with Valero, the amount of operating revenues we generate primarily depends on the volumes of crude oil and refined petroleum products that we transport through our pipelines and handle at our terminals. These volumes are primarily affected by refinery reliability and the supply of, and demand for, crude oil and refined petroleum products in the markets served by our assets. For 2017, we expect that Valero will transport volumes through our pipelines and throughput volumes at our terminals generally consistent with historical levels.
RESULTS OF OPERATIONS
The following tables highlight our results of operations and our operating performance for the
three
months ended
March 31, 2017
and
2016
. The narrative following these tables provides an analysis of our results of operations.
Results of Operations
(in thousands, except per unit amounts)
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Three Months Ended March 31,
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2017
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2016
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Change
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Operating revenues – related party
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$
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105,816
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$
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78,767
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$
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27,049
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Costs and expenses:
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Operating expenses
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23,545
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24,286
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(741
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)
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General and administrative expenses
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3,830
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4,365
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(535
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)
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Depreciation expense
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11,775
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11,512
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263
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Total costs and expenses
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39,150
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40,163
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(1,013
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)
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Operating income
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66,666
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38,604
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28,062
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Other income, net
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64
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77
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(13
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)
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Interest and debt expense, net of capitalized interest
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(8,289
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)
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(2,659
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)
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(5,630
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)
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Income before income taxes
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58,441
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36,022
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22,419
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Income tax expense
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304
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242
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62
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Net income
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58,137
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35,780
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22,357
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Less: Net loss attributable to Predecessor
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—
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(7,518
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)
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7,518
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Net income attributable to partners
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58,137
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43,298
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14,839
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Less: General partner’s interest in net income
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9,467
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3,504
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5,963
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Limited partners’ interest in net income
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$
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48,670
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$
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39,794
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$
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8,876
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Net income per limited partner unit – basic and diluted:
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Common units
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$
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0.72
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$
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0.61
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Subordinated units
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$
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—
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$
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0.61
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Weighted-average limited partner units outstanding – basic and diluted:
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Common units
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67,664
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36,520
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Subordinated units
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—
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28,790
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Operating Highlights and Other Financial Information
(in thousands, except throughput, per barrel, and per unit amounts)
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Three Months Ended March 31,
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2017
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2016
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Change
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Operating highlights:
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Pipeline transportation:
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Pipeline transportation revenues
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$
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23,175
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$
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20,245
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$
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2,930
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Pipeline transportation throughput (BPD)
(a)
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962,200
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918,936
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43,264
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Average pipeline transportation revenue per barrel
(b)
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$
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0.27
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$
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0.24
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$
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0.03
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Terminaling:
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Terminaling revenues
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$
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82,506
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$
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58,387
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$
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24,119
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Terminaling throughput (BPD)
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2,734,478
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1,849,858
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884,620
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Average terminaling revenue per barrel
(b)
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$
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0.34
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$
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0.35
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$
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(0.01
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)
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Storage revenues
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$
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135
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$
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135
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$
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—
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Total operating revenues – related party
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$
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105,816
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$
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78,767
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$
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27,049
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Capital expenditures:
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Maintenance
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$
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2,038
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$
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2,845
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$
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(807
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)
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Expansion
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6,979
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4,355
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2,624
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Total capital expenditures
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9,017
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7,200
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1,817
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Less: Capital expenditures attributable to Predecessor
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—
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933
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(933
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)
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Capital expenditures attributable to Partnership
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$
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9,017
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$
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6,267
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$
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2,750
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Other financial information:
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Distribution declared per unit
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$
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0.4275
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$
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0.3400
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Distribution declared:
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Limited partner units – public
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$
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9,610
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$
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7,315
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Limited partner units – Valero
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19,531
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15,143
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General partner units – Valero
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8,902
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3,150
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Total distribution declared
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$
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38,043
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$
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25,608
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____________________
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(a)
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Represents the sum of volumes transported through each separately tariffed pipeline segment divided by the number of days in the period.
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(b)
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Average revenue per barrel is calculated as revenue divided by throughput for the period. Throughput is derived by multiplying the throughput barrels per day (BPD) by the number of days in the period.
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Operating revenues
increased
$27.0 million
, or
34 percent
, in the
first quarter
of
2017
compared to the
first quarter
of
2016
. The increase was due primarily to the following:
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•
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Incremental terminaling throughput from acquired businesses.
We experienced a 38 percent increase in terminaling revenues in the
first quarter
of 2017 compared to the
first quarter
of 2016 generated by the McKee, Meraux, and Three Rivers terminals we acquired from Valero during the second and third quarters of 2016. The incremental throughput volumes at these terminals had a favorable impact to our operating revenues of $22.5 million.
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•
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Incremental operating revenues at Red River crude system.
The incremental throughput volumes at the Red River crude system had a favorable impact to our operating revenues of $2.0 million. The higher transportation revenue per barrel generated by this system contributed to a higher average pipeline transportation revenue per barrel in the
first quarter
of 2017 compared to the
first quarter
of 2016.
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Operating expenses
decreased
$741,000
, or
3 percent
, in the
first quarter
of
2017
compared to the
first quarter
of
2016
due primarily to lower maintenance expense of $1.1 million at the St. Charles and Meraux terminals, which was mainly related to inspection activity in the first quarter of 2016. This decrease was partially offset by operating expenses of $459,000 related to our Red River crude system, which was acquired in the first quarter of 2017.
General and administrative expenses
decreased
$535,000
, or
12 percent
, in the
first quarter
of
2017
compared to the
first quarter
of
2016
due primarily to lower transaction costs of $375,000 associated with the acquisition of businesses from Valero and lower public company costs of $245,000. These decreases were partially offset by incremental costs of $124,000 related to the management fee charged to us by Valero as a result of additional administrative services provided to us in connection with our acquisitions from Valero in 2016.
Depreciation expense
increased
$263,000
, or
2 percent
, in the
first quarter
of
2017
compared to the
first quarter
of
2016
due primarily to depreciation expense recognized on the assets that compose our Red River crude system, which was acquired in the first quarter of 2017.
“Interest and debt expense, net of capitalized interest”
increased
$5.6 million
in the
first quarter
of
2017
compared to the
first quarter
of
2016
due to incremental borrowings of $139.0 million and $210.0 million under our revolving credit facility in connection with the acquisitions of the McKee Terminal Services Business and the Meraux and Three Rivers Terminal Services Business from Valero, respectively, and to incremental interest expense incurred on $500.0 million of 4.375% senior notes due December 2026, which we issued in December 2016 (the Senior Notes). Interest expense on the incremental borrowings was approximately $2.0 million in the
first quarter
of
2017
. We used the proceeds of the Senior Notes to repay $494.0 million of outstanding borrowings under our revolving credit facility. The interest rate on the Senior Notes is higher than our revolving credit facility, thereby increasing the effective interest rate in 2017. Incremental interest expense resulting from the Senior Notes was approximately $2.6 million in the
first quarter
of
2017
.
LIQUIDITY AND CAPITAL RESOURCES
Sources of Liquidity
We expect our ongoing sources of liquidity to include cash generated from operations, borrowings under our revolving credit facility, and issuances of additional debt and equity securities. We may also enter into financing transactions with Valero in connection with acquisitions. We believe that cash generated from these sources will be sufficient to meet our short-term working capital requirements and long-term capital expenditure requirements and to make quarterly cash distributions.
Unit Offerings
On September 16, 2016, we entered into an equity distribution agreement pursuant to which we may offer and sell from time to time our common units having an aggregate offering price of up to $350.0 million based on amounts, at prices, and on terms to be determined by market conditions and other factors at the time of our offerings (such continuous offering program, or at-the-market program, referred to as our “ATM Program”). In the first quarter of 2017, we issued 733,601 common units under the ATM Program and received proceeds of $34.9 million, which is net of $414,000 of expenses with respect to the sale of these units. Concurrent with the issuance of common units under our ATM Program, our general partner contributed $739,000 in exchange for 15,412 general partner units to maintain its 2.0 percent general partner interest in the Partnership.
Distributions
On
April 20, 2017
, the board of directors of our general partner declared a distribution of
$0.4275
per unit applicable to the
first quarter
of
2017
, which equates to
$38.0 million
in total distributions to unitholders of record as of
May 2, 2017
. This quarterly distribution per unit is more than the minimum quarterly distribution of $0.2125 per unit.
Our distributions are declared subsequent to quarter end. The table below summarizes information related to our quarterly cash distributions that have been declared since January 1, 2016:
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Quarterly
Period
Ended
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Total
Quarterly
Distribution
(Per Unit)
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Total Cash
Distribution
(In Thousands)
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Declaration
Date
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Record
Date
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Distribution
Date
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March 31, 2017
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$
|
0.4275
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$
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38,043
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April 20, 2017
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May 2, 2017
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May 11, 2017
|
December 31, 2016
|
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0.4065
|
|
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34,895
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|
January 20, 2017
|
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February 2, 2017
|
|
February 10, 2017
|
September 30, 2016
|
|
0.3850
|
|
|
32,175
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October 24, 2016
|
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November 3, 2016
|
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November 10, 2016
|
June 30, 2016
|
|
0.3650
|
|
|
28,912
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|
July 21, 2016
|
|
August 1, 2016
|
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August 9, 2016
|
March 31, 2016
|
|
0.3400
|
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|
25,608
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April 21, 2016
|
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May 2, 2016
|
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May 10, 2016
|
December 31, 2015
|
|
0.3200
|
|
|
22,711
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|
January 25, 2016
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|
February 4, 2016
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|
February 11, 2016
|
Effective
August 10, 2016
, all of our subordinated units, which were owned by Valero, were converted on a one-for-one basis into common units. The conversion of the subordinated units does not impact the amount of cash distributions paid or the total number of outstanding units.
Revolving Credit Facility
The Revolver consists of aggregate commitments of
$750.0 million
and matures in November 2020. We have the option to increase the aggregate commitments under the Revolver to $1.0 billion, subject to certain restrictions. The Revolver also provides for the issuance of letters of credit up to $100.0 million. As of
March 31, 2017
, we had
$30.0 million
of borrowings and no letters of credit outstanding under the Revolver. See
Note 5
of Condensed Notes to Consolidated Financial Statements for a description of the Revolver.
Senior Notes
On December 9, 2016, we issued in a public offering $500.0 million aggregate principal amount of our Senior Notes. Gross proceeds from this debt issuance totaled $499.8 million before deducting the underwriting discount and other debt issuance costs totaling $4.5 million. See
Note 5
of Condensed Notes to Consolidated Financial Statements for a description of our Senior Notes.
Notes Payable – Related Party
During the three months ended
March 31, 2017
, we made no repayments under our
two
subordinated credit agreements with Valero (the Loan Agreements). As of
March 31, 2017
, we had
$370.0 million
outstanding under the Loan Agreements. See
Note 5
of Condensed Notes to Consolidated Financial Statements for a description of the Loan Agreements.
Cash Flows Summary
Components of our cash flows are set forth below (in thousands):
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Three Months Ended March 31,
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2017
|
|
2016 (a)
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Cash flows provided by (used in):
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|
Operating activities
|
|
$
|
74,718
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|
|
$
|
45,512
|
|
Investing activities
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|
(80,810
|
)
|
|
(7,200
|
)
|
Financing activities
|
|
325
|
|
|
(16,817
|
)
|
Net increase (decrease) in cash and cash equivalents
|
|
$
|
(5,767
|
)
|
|
$
|
21,495
|
|
|
|
|
|
|
|
(a) Financial information has been retrospectively adjusted for the acquisitions of the McKee Terminal Services Business and the Meraux and Three Rivers Terminal Services Business.
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Cash Flows for the Three Months Ended March 31, 2017
Our operations generated
$74.7 million
of cash in the first
three
months of
2017
, driven primarily by net income of
$58.1 million
plus noncash adjustments (primarily for depreciation expense) of
$12.2 million
and favorable changes in working capital of
$4.4 million
. See “RESULTS OF OPERATIONS” for further discussion of our operations. The change in working capital was composed primarily of an increase in accrued interest of $6.2 million, partially offset by a decrease in “deferred revenue
–
related party” of
$2.0 million
. The change in our working capital is further described in
Note 10
of Condensed Notes to Consolidated Financial Statements. The increase in accrued interest was due primarily to the interest on our Senior Notes, which is paid semi-annually beginning in June 2017. The decrease in “deferred revenue
–
related party” was due to lower deficiency payments associated with minimum volume commitments.
The
$74.7 million
of cash generated by our operations, along with
$36.0 million
in proceeds received in connection with our ATM program, were used mainly to:
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|
•
|
fund the
$71.8 million
acquisition of the Red River crude system;
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•
|
pay
$34.9 million
in cash distributions to limited partners and our general partner;
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•
|
fund
$9.0 million
in capital expenditures; and
|
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|
•
|
pay
$815,000
in debt issuance and offering costs.
|
Cash Flows for the Three Months Ended March 31, 2016
Our operations generated
$45.5 million
of cash in the first
three
months of
2016
, driven primarily by net income of
$35.8 million
plus noncash adjustments (primarily for depreciation expense) of
$11.7 million
, partially offset by unfavorable changes in working capital of
$2.0 million
. See “RESULTS OF OPERATIONS” for further discussion of our operations. The change in working capital was composed primarily of a decrease in “accounts payable
–
related party” of
$2.0 million
. The change in our working capital is further described in
Note 10
of Condensed Notes to Consolidated Financial Statements. The decrease in “accounts payable
–
related party” was attributable primarily to the timing of invoices from Valero for services provided to our general partner under our amended and restated services and secondment agreement.
The
$45.5 million
of cash generated by our operations, along with
$6.3 million
of net cash transferred from Valero related to the cash flows associated with our Predecessor, were used mainly to:
|
|
•
|
pay
$22.7 million
in cash distributions to limited partners and our general partner;
|
|
|
•
|
fund
$7.2 million
in capital expenditures;
|
|
|
•
|
make debt repayments of
$326,000
on our capital lease obligations; and
|
|
|
•
|
pay
$107,000
in debt issuance and offering costs.
|
Capital Expenditures
Our operations can be capital intensive, requiring investments to expand, upgrade, or enhance existing operations and to meet environmental and operational regulations. Our capital requirements consist of maintenance capital expenditures and expansion capital expenditures as those terms are defined in our partnership agreement. Examples of maintenance capital expenditures are those made to replace partially or fully depreciated assets, to maintain the existing operating capacity of our assets and to extend their useful lives, or other capital expenditures that are incurred in maintaining existing system volumes and related cash flows. In contrast, examples of expansion capital expenditures include those made to expand and upgrade our systems and facilities and to construct or acquire new systems or facilities to grow our business.
Our capital expenditures were as follows (in thousands):
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|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2017
|
|
2016 (a)
|
Maintenance
|
|
$
|
2,038
|
|
|
$
|
2,845
|
|
Expansion (b)
|
|
6,979
|
|
|
4,355
|
|
Total capital expenditures
|
|
$
|
9,017
|
|
|
$
|
7,200
|
|
|
|
|
|
|
|
(a) Financial information has been retrospectively adjusted for the acquisitions of the McKee Terminal Services Business and the Meraux and Three Rivers Terminal Services Business.
|
(b) This table excludes amounts paid to Valero for the acquired businesses. See Note 2 of Condensed Notes to Consolidated Financial Statements for further discussion of our acquisitions.
|
Our capital expenditures in the first
three
months of
2017
were primarily for:
|
|
•
|
the construction of a rail loading facility at the St. Charles terminal;
|
|
|
•
|
the construction of a new tank at our Port Arthur products system; and
|
|
|
•
|
the improvement of assets at our McKee, Houston, and Corpus Christi terminals to extend the useful lives of the tanks
.
|
Our capital expenditures in the first
three
months of
2016
were primarily for:
|
|
•
|
the construction of a connection to receive crude oil from the Seaway pipeline into our Lucas crude system;
|
|
|
•
|
the improvement of assets at our Three Rivers and St. Charles terminals to extend the useful lives of the tanks; and
|
|
|
•
|
the improvement of assets at our Lucas crude system for enhanced monitoring of pipeline shipments.
|
For
2017
, we expect our capital expenditures to be approximately $49.0 million. Our estimate consists of approximately $14.0 million for maintenance capital expenditures and approximately $35.0 million for expansion capital expenditures. We continuously evaluate our capital budget and make changes as conditions warrant. We anticipate that these capital expenditures will be funded from cash flows from operations. The foregoing capital expenditure estimate does not include any amounts related to strategic acquisitions.
In addition to the above-mentioned capital expenditures, Valero funded $9.2 million of capital projects primarily related to the St. Charles, Meraux, Corpus Christi, Three Rivers, and Houston terminals. Valero agreed to fund these projects in connection with the acquisitions from Valero. See
Note 10
of Condensed Notes to Consolidated Financial Statements for further description of these noncash activities.
Contractual Obligations
As of
March 31, 2017
, our contractual obligations included debt obligations, operating leases, purchase obligations, and other long-term liabilities. There were no material changes outside the ordinary course of business with respect to our contractual obligations during the
three months ended
March 31, 2017
.
Regulatory Matters
Rate and Other Regulations
Our interstate common carrier crude oil and refined petroleum products pipeline operations are subject to rate regulation by the Federal Energy Regulatory Commission under the Interstate Commerce Act and Energy Policy Act. Our pipelines and terminal operations are also subject to safety regulations adopted by the Department of Transportation, as well as to state regulations. For more information on federal and state regulations affecting our business, please read our annual report on Form 10-K for the year ended December 31,
2016
.
Environmental Matters and Compliance Costs
We are subject to extensive federal, state, and local environmental laws and regulations. These laws, which change frequently, regulate the discharge of materials into the environment or otherwise relate to protection of the environment. Compliance with these laws and regulations may require us to remediate environmental damage from any discharge of petroleum or chemical substances from our facilities or require us to install additional pollution control equipment on our equipment and facilities. Our failure to comply with these or any other environmental or safety-related regulations could result in the assessment of administrative, civil, or criminal penalties, the imposition of investigatory and remedial liabilities, and the issuance of injunctions that may subject us to additional operational constraints.
There were no significant changes to our environmental matters and compliance costs during the
three months ended
March 31, 2017
.
CRITICAL ACCOUNTING ESTIMATES
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. As of
March 31, 2017
, there were no significant changes to our critical accounting estimates since the date our annual report on Form 10-K for the year ended December 31,
2016
was filed.
|
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
Market risk is the risk of loss arising from adverse changes in market rates and prices. Because we do not take ownership of or receive any payments based on the value of the crude oil or refined petroleum products that we handle and do not engage in the trading of any commodities, we have no direct exposure to commodity price fluctuations.
Our commercial agreements with Valero are indexed to inflation to mitigate our exposure to increases in the cost of labor and materials used in our business.
The following table provides information about our debt obligations (dollars in thousands), the fair values of which are sensitive to changes in interest rates. Principal cash flows and related weighted-average interest rates by expected maturity dates are presented.
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2017
|
|
|
|
Expected Maturity Dates
|
|
|
|
|
|
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
2021
|
|
There-
after
|
|
Total (a)
|
|
Fair
Value
|
Fixed rate
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
500,000
|
|
|
$
|
500,000
|
|
|
$
|
507,205
|
|
Average interest rate
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
4.38
|
%
|
|
4.38
|
%
|
|
|
Floating rate
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
400,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
400,000
|
|
|
$
|
400,000
|
|
Average interest rate
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
2.29
|
%
|
|
—
|
%
|
|
—
|
%
|
|
2.29
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016
|
|
|
|
Expected Maturity Dates
|
|
|
|
|
|
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
2021
|
|
There-
after
|
|
Total (a)
|
|
Fair
Value
|
Fixed rate
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
500,000
|
|
|
$
|
500,000
|
|
|
$
|
506,670
|
|
Average interest rate
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
4.38
|
%
|
|
4.38
|
%
|
|
|
Floating rate
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
400,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
400,000
|
|
|
$
|
400,000
|
|
Average interest rate
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
2.27
|
%
|
|
—
|
%
|
|
—
|
%
|
|
2.27
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Excludes unamortized discount and deferred issuance costs.
|