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x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the quarterly period ended March 31, 2016
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from _______ to _______
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Delaware
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74-2956831
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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19003 IH-10 West
San Antonio, Texas
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78257
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer
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x
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Accelerated filer
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o
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Non-accelerated filer
|
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o
(Do not check if a smaller reporting company)
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Smaller reporting company
|
|
o
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Item 1.
|
|
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Item 2.
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Item 3.
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Item 4.
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||
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Item 2.
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||
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Item 6.
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Item 1.
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Financial Statements
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March 31,
2016 |
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December 31,
2015 |
||||
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(Unaudited)
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|
|
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
130,917
|
|
|
$
|
118,862
|
|
Accounts receivable, net of allowance for doubtful accounts of $7,978
and $8,473 as of March 31, 2016 and December 31, 2015, respectively
|
133,469
|
|
|
145,064
|
|
||
Receivable from related party
|
2,295
|
|
|
—
|
|
||
Inventories
|
41,173
|
|
|
38,749
|
|
||
Other current assets
|
25,719
|
|
|
31,176
|
|
||
Total current assets
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333,573
|
|
|
333,851
|
|
||
Property, plant and equipment, at cost
|
5,264,120
|
|
|
5,209,160
|
|
||
Accumulated depreciation and amortization
|
(1,577,433
|
)
|
|
(1,525,589
|
)
|
||
Property, plant and equipment, net
|
3,686,687
|
|
|
3,683,571
|
|
||
Intangible assets, net
|
108,551
|
|
|
112,011
|
|
||
Goodwill
|
696,637
|
|
|
696,637
|
|
||
Deferred income tax asset
|
502
|
|
|
2,858
|
|
||
Other long-term assets, net
|
269,599
|
|
|
296,597
|
|
||
Total assets
|
$
|
5,095,549
|
|
|
$
|
5,125,525
|
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Liabilities and Partners’ Equity
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
100,782
|
|
|
$
|
125,147
|
|
Payable to related party
|
—
|
|
|
14,799
|
|
||
Short-term debt
|
81,000
|
|
|
84,000
|
|
||
Accrued interest payable
|
27,897
|
|
|
34,286
|
|
||
Accrued liabilities
|
43,355
|
|
|
55,194
|
|
||
Taxes other than income tax
|
13,599
|
|
|
12,810
|
|
||
Income tax payable
|
6,157
|
|
|
5,977
|
|
||
Total current liabilities
|
272,790
|
|
|
332,213
|
|
||
Long-term debt
|
3,125,650
|
|
|
3,055,612
|
|
||
Long-term payable to related party
|
—
|
|
|
32,080
|
|
||
Deferred income tax liability
|
25,841
|
|
|
24,810
|
|
||
Other long-term liabilities
|
113,616
|
|
|
70,966
|
|
||
Commitments and contingencies (Note 4)
|
|
|
|
||||
Partners’ equity:
|
|
|
|
||||
Limited partners (77,886,078 common units outstanding
as of March 31, 2016 and December 31, 2015)
|
1,625,515
|
|
|
1,661,900
|
|
||
General partner
|
35,709
|
|
|
36,738
|
|
||
Accumulated other comprehensive loss
|
(103,572
|
)
|
|
(88,794
|
)
|
||
Total partners’ equity
|
1,557,652
|
|
|
1,609,844
|
|
||
Total liabilities and partners’ equity
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$
|
5,095,549
|
|
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$
|
5,125,525
|
|
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Three Months Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
Revenues:
|
|
|
|
||||
Service revenues
|
$
|
266,566
|
|
|
$
|
269,973
|
|
Product sales
|
139,137
|
|
|
284,971
|
|
||
Total revenues
|
405,703
|
|
|
554,944
|
|
||
Costs and expenses:
|
|
|
|
||||
Cost of product sales
|
128,990
|
|
|
262,506
|
|
||
Operating expenses:
|
|
|
|
||||
Third parties
|
83,540
|
|
|
84,360
|
|
||
Related party
|
21,681
|
|
|
31,287
|
|
||
Total operating expenses
|
105,221
|
|
|
115,647
|
|
||
General and administrative expenses:
|
|
|
|
||||
Third parties
|
13,365
|
|
|
7,667
|
|
||
Related party
|
10,420
|
|
|
17,386
|
|
||
Total general and administrative expenses
|
23,785
|
|
|
25,053
|
|
||
Depreciation and amortization expense
|
53,142
|
|
|
52,457
|
|
||
Total costs and expenses
|
311,138
|
|
|
455,663
|
|
||
Operating income
|
94,565
|
|
|
99,281
|
|
||
Interest expense, net
|
(34,123
|
)
|
|
(32,037
|
)
|
||
Other (expense) income, net
|
(171
|
)
|
|
62,268
|
|
||
Income from continuing operations before income tax expense
|
60,271
|
|
|
129,512
|
|
||
Income tax expense
|
2,870
|
|
|
2,387
|
|
||
Income from continuing operations
|
57,401
|
|
|
127,125
|
|
||
Income from discontinued operations, net of tax
|
—
|
|
|
774
|
|
||
Net income
|
$
|
57,401
|
|
|
$
|
127,899
|
|
Basic and diluted net income per unit applicable to limited partners:
|
|
|
|
||||
Continuing operations
|
$
|
0.57
|
|
|
$
|
1.46
|
|
Discontinued operations
|
—
|
|
|
0.01
|
|
||
Total (Note 11)
|
$
|
0.57
|
|
|
$
|
1.47
|
|
Basic weighted-average limited partner units outstanding
|
77,886,078
|
|
|
77,886,078
|
|
||
|
|
|
|
||||
Diluted weighted-average limited partner units outstanding
|
77,956,824
|
|
|
77,886,078
|
|
||
|
|
|
|
||||
Comprehensive income
|
$
|
42,623
|
|
|
$
|
107,798
|
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
Cash Flows from Operating Activities:
|
|
|
|
||||
Net income
|
$
|
57,401
|
|
|
$
|
127,899
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization expense
|
53,142
|
|
|
52,457
|
|
||
Unit-based compensation expense
|
1,086
|
|
|
—
|
|
||
Amortization of debt related items
|
2,017
|
|
|
2,237
|
|
||
Loss (gain) from sale or disposition of assets
|
4
|
|
|
(75
|
)
|
||
Gain associated with the Linden Acquisition
|
—
|
|
|
(56,277
|
)
|
||
Deferred income tax expense (benefit)
|
456
|
|
|
(535
|
)
|
||
Distributions of equity in earnings of joint venture
|
—
|
|
|
2,500
|
|
||
Changes in current assets and current liabilities (Note 12)
|
(12,490
|
)
|
|
(7,774
|
)
|
||
Other, net
|
111
|
|
|
2,150
|
|
||
Net cash provided by operating activities
|
101,727
|
|
|
122,582
|
|
||
Cash Flows from Investing Activities:
|
|
|
|
||||
Capital expenditures
|
(46,176
|
)
|
|
(72,880
|
)
|
||
Change in accounts payable related to capital expenditures
|
(12,663
|
)
|
|
(13,464
|
)
|
||
Acquisitions
|
—
|
|
|
(142,500
|
)
|
||
Investment in other long-term assets
|
—
|
|
|
(2,177
|
)
|
||
Proceeds from sale or disposition of assets
|
—
|
|
|
1,185
|
|
||
Net cash used in investing activities
|
(58,839
|
)
|
|
(229,836
|
)
|
||
Cash Flows from Financing Activities:
|
|
|
|
||||
Proceeds from long-term debt borrowings
|
168,089
|
|
|
330,532
|
|
||
Proceeds from short-term debt borrowings
|
134,000
|
|
|
163,000
|
|
||
Long-term debt repayments
|
(93,709
|
)
|
|
(83,166
|
)
|
||
Short-term debt repayments
|
(137,000
|
)
|
|
(194,000
|
)
|
||
Distributions to unitholders and general partner
|
(98,051
|
)
|
|
(98,051
|
)
|
||
Decrease in cash book overdrafts
|
(8,799
|
)
|
|
(14,294
|
)
|
||
Other, net
|
(5
|
)
|
|
(10
|
)
|
||
Net cash (used in) provided by financing activities
|
(35,475
|
)
|
|
104,011
|
|
||
Effect of foreign exchange rate changes on cash
|
4,642
|
|
|
(6,486
|
)
|
||
Net increase (decrease) in cash and cash equivalents
|
12,055
|
|
|
(9,729
|
)
|
||
Cash and cash equivalents as of the beginning of the period
|
118,862
|
|
|
87,912
|
|
||
Cash and cash equivalents as of the end of the period
|
$
|
130,917
|
|
|
$
|
78,183
|
|
|
March 31, 2016
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
(Thousands of Dollars)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Other current assets:
|
|
|
|
|
|
|
|
||||||||
Product imbalances
|
$
|
4,321
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,321
|
|
Commodity derivatives
|
1,671
|
|
|
69
|
|
|
—
|
|
|
1,740
|
|
||||
Total
|
$
|
5,992
|
|
|
$
|
69
|
|
|
$
|
—
|
|
|
$
|
6,061
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Accrued liabilities:
|
|
|
|
|
|
|
|
||||||||
Product imbalances
|
$
|
(433
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(433
|
)
|
Commodity derivatives
|
(751
|
)
|
|
(133
|
)
|
|
—
|
|
|
(884
|
)
|
||||
Other long-term liabilities:
|
|
|
|
|
|
|
|
||||||||
Guarantee liability
|
—
|
|
|
—
|
|
|
(1,400
|
)
|
|
(1,400
|
)
|
||||
Interest rate swaps
|
—
|
|
|
(28,675
|
)
|
|
—
|
|
|
(28,675
|
)
|
||||
Total
|
$
|
(1,184
|
)
|
|
$
|
(28,808
|
)
|
|
$
|
(1,400
|
)
|
|
$
|
(31,392
|
)
|
|
December 31, 2015
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
(Thousands of Dollars)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Other current assets:
|
|
|
|
|
|
|
|
||||||||
Product imbalances
|
$
|
179
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
179
|
|
Commodity derivatives
|
11,325
|
|
|
77
|
|
|
—
|
|
|
11,402
|
|
||||
Other long-term assets, net:
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
—
|
|
|
2,755
|
|
|
—
|
|
|
2,755
|
|
||||
Total
|
$
|
11,504
|
|
|
$
|
2,832
|
|
|
$
|
—
|
|
|
$
|
14,336
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Accrued liabilities:
|
|
|
|
|
|
|
|
||||||||
Product imbalances
|
$
|
(419
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(419
|
)
|
Commodity derivatives
|
—
|
|
|
(120
|
)
|
|
—
|
|
|
(120
|
)
|
||||
Other long-term liabilities:
|
|
|
|
|
|
|
|
||||||||
Guarantee liability
|
—
|
|
|
—
|
|
|
(1,697
|
)
|
|
(1,697
|
)
|
||||
Interest rate swaps
|
—
|
|
|
(1,452
|
)
|
|
—
|
|
|
(1,452
|
)
|
||||
Total
|
$
|
(419
|
)
|
|
$
|
(1,572
|
)
|
|
$
|
(1,697
|
)
|
|
$
|
(3,688
|
)
|
|
Three Months Ended March 31, 2016
|
||
|
(Thousands of Dollars)
|
||
Beginning balance
|
$
|
1,697
|
|
Adjustments to guarantee liability
|
(297
|
)
|
|
Ending balance
|
$
|
1,400
|
|
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||||
|
Fair Value
|
|
Carrying Amount
|
|
Fair Value
|
|
Carrying Amount
|
||||||||
|
(Thousands of Dollars)
|
||||||||||||||
Long-term debt
|
$
|
2,980,166
|
|
|
$
|
3,125,650
|
|
|
$
|
2,929,438
|
|
|
$
|
3,055,612
|
|
Axeon Term Loan
|
$
|
173,197
|
|
|
$
|
170,055
|
|
|
$
|
172,123
|
|
|
$
|
170,352
|
|
|
|
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||||||
|
Balance Sheet Location
|
|
March 31,
2016 |
|
December 31, 2015
|
|
March 31,
2016 |
|
December 31, 2015
|
||||||||
|
|
|
(Thousands of Dollars)
|
||||||||||||||
Derivatives Designated as
Hedging Instruments:
|
|
|
|
|
|
|
|
|
|
||||||||
Commodity contracts
|
Other current assets
|
|
$
|
—
|
|
|
$
|
1,937
|
|
|
$
|
—
|
|
|
$
|
(23
|
)
|
Interest rate swaps
|
Other long-term assets, net
|
|
—
|
|
|
2,755
|
|
|
—
|
|
|
—
|
|
||||
Commodity contracts
|
Accrued liabilities
|
|
88
|
|
|
—
|
|
|
(358
|
)
|
|
—
|
|
||||
Interest rate swaps
|
Other long-term liabilities
|
|
—
|
|
|
—
|
|
|
(28,675
|
)
|
|
(1,452
|
)
|
||||
Total
|
|
|
88
|
|
|
4,692
|
|
|
(29,033
|
)
|
|
(1,475
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
Derivatives Not Designated
as Hedging Instruments:
|
|
|
|
|
|
|
|
|
|
||||||||
Commodity contracts
|
Other current assets
|
|
2,773
|
|
|
34,016
|
|
|
(1,033
|
)
|
|
(24,528
|
)
|
||||
Commodity contracts
|
Accrued liabilities
|
|
1,135
|
|
|
117
|
|
|
(1,749
|
)
|
|
(237
|
)
|
||||
Total
|
|
|
3,908
|
|
|
34,133
|
|
|
(2,782
|
)
|
|
(24,765
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
Total Derivatives
|
|
|
$
|
3,996
|
|
|
$
|
38,825
|
|
|
$
|
(31,815
|
)
|
|
$
|
(26,240
|
)
|
Commodity Contracts
|
|
March 31,
2016 |
|
December 31, 2015
|
||||
|
|
(Thousands of Dollars)
|
||||||
Net amounts of assets presented in the consolidated balance sheets
|
|
$
|
1,740
|
|
|
$
|
11,402
|
|
Net amounts of liabilities presented in the consolidated balance sheets
|
|
$
|
(884
|
)
|
|
$
|
(120
|
)
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(Thousands of Dollars)
|
||||||
Derivatives Designated as Fair Value Hedging Instruments:
|
|
|
|
||||
Gain (loss) recognized in income on derivative
|
$
|
(1,012
|
)
|
|
$
|
2,164
|
|
Gain (loss) recognized in income on hedged item
|
2,866
|
|
|
(1,676
|
)
|
||
Gain (loss) recognized in income for ineffective portion
|
1,854
|
|
|
488
|
|
||
|
|
|
|
||||
Derivatives Not Designated as Hedging Instruments:
|
|
|
|
||||
Gain (loss) recognized in income on derivative
|
$
|
720
|
|
|
$
|
330
|
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(Thousands of Dollars)
|
||||||
Derivatives Designated as Cash Flow Hedging Instruments:
|
|
|
|
||||
Gain (loss) recognized in other comprehensive income on derivative (effective portion)
|
$
|
(29,978
|
)
|
|
$
|
(2,035
|
)
|
Gain (loss) reclassified from AOCI into interest expense, net (effective portion) (a)
|
$
|
(2,222
|
)
|
|
$
|
(2,538
|
)
|
(a)
|
As of
March 31, 2016
, we expect to reclassify a loss of
$7.9 million
to “Interest expense, net” within the next twelve months associated with unwound forward-starting interest rate swaps.
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(Thousands of Dollars)
|
||||||
Operating expenses
|
$
|
21,681
|
|
|
$
|
31,287
|
|
General and administrative expenses
|
$
|
10,420
|
|
|
$
|
17,386
|
|
Decrease in related party payable:
|
|
||
Current
|
$
|
16,014
|
|
Long-term
|
32,656
|
|
|
Decrease in related party payable
|
$
|
48,670
|
|
|
|
||
Changes to our consolidated balance sheet:
|
|
||
Current and long-term assets
|
$
|
2,154
|
|
Current liabilities
|
5,609
|
|
|
Other long-term liabilities
|
34,042
|
|
|
Limited partner’s equity
|
2,664
|
|
|
Accumulated other comprehensive loss
|
4,201
|
|
|
Changes to our consolidated balance sheet
|
$
|
48,670
|
|
|
Pension Plans
|
|
Other Postretirement Benefits
|
||||
|
(Thousands of Dollars)
|
||||||
Fair value of plan assets
|
$
|
87,706
|
|
|
$
|
—
|
|
Less: Benefit obligation
|
109,202
|
|
|
10,042
|
|
||
Funded status
|
$
|
(21,496
|
)
|
|
$
|
(10,042
|
)
|
|
Pension Plans
|
|
Other Postretirement
Benefits
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(Thousands of Dollars)
|
||||||||||||||
For the three months ended March 31:
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
1,926
|
|
|
$
|
1,919
|
|
|
$
|
105
|
|
|
$
|
118
|
|
Interest cost
|
1,006
|
|
|
1,097
|
|
|
100
|
|
|
112
|
|
||||
Expected return on assets
|
(1,352
|
)
|
|
(1,254
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of prior service credit
|
(517
|
)
|
|
(516
|
)
|
|
(286
|
)
|
|
(286
|
)
|
||||
Amortization of net loss
|
273
|
|
|
461
|
|
|
45
|
|
|
67
|
|
||||
Net periodic benefit cost (income)
|
$
|
1,336
|
|
|
$
|
1,707
|
|
|
$
|
(36
|
)
|
|
$
|
11
|
|
|
Balance as of December 31, 2015
|
$
|
1,609,844
|
|
Net income
|
57,401
|
|
|
Unit-based compensation
|
3,236
|
|
|
Other comprehensive loss
|
(14,778
|
)
|
|
Cash distributions to partners
|
(98,051
|
)
|
|
Balance as of March 31, 2016
|
$
|
1,557,652
|
|
|
|
Foreign
Currency
Translation
|
|
Cash Flow Hedges
|
|
Pension and Other Postretirement Benefits
|
|
Total
|
||||||||
|
(Thousands of Dollars)
|
||||||||||||||
Balance as of January 1, 2016
|
$
|
(60,826
|
)
|
|
$
|
(27,968
|
)
|
|
$
|
—
|
|
|
$
|
(88,794
|
)
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||
Employee Transfer
|
—
|
|
|
—
|
|
|
4,201
|
|
|
4,201
|
|
||||
Other comprehensive income (loss) before
reclassification adjustments
|
8,938
|
|
|
(29,978
|
)
|
|
—
|
|
|
(21,040
|
)
|
||||
Net gain on pension costs reclassified into operating
expense
|
—
|
|
|
—
|
|
|
(120
|
)
|
|
(120
|
)
|
||||
Net gain on pension costs reclassified into general and
administrative expense
|
—
|
|
|
—
|
|
|
(41
|
)
|
|
(41
|
)
|
||||
Net loss on cash flow hedges reclassified into interest
expense, net
|
—
|
|
|
2,222
|
|
|
—
|
|
|
2,222
|
|
||||
Other comprehensive income (loss)
|
8,938
|
|
|
(27,756
|
)
|
|
4,040
|
|
|
(14,778
|
)
|
||||
Balance as of March 31, 2016
|
$
|
(51,888
|
)
|
|
$
|
(55,724
|
)
|
|
$
|
4,040
|
|
|
$
|
(103,572
|
)
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(Thousands of Dollars)
|
||||||
Net income applicable to general partner and limited partners’ interest
|
$
|
57,401
|
|
|
$
|
127,899
|
|
Less general partner incentive distribution
|
10,805
|
|
|
10,805
|
|
||
Net income after general partner incentive distribution
|
46,596
|
|
|
117,094
|
|
||
General partner interest
|
2
|
%
|
|
2
|
%
|
||
General partner allocation of net income after general partner incentive distribution
|
932
|
|
|
2,342
|
|
||
General partner incentive distribution
|
10,805
|
|
|
10,805
|
|
||
Net income applicable to general partner
|
$
|
11,737
|
|
|
$
|
13,147
|
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(Thousands of Dollars, Except Per Unit Data)
|
||||||
General partner interest
|
$
|
1,961
|
|
|
$
|
1,961
|
|
General partner incentive distribution
|
10,805
|
|
|
10,805
|
|
||
Total general partner distribution
|
12,766
|
|
|
12,766
|
|
||
Limited partners’ distribution
|
85,285
|
|
|
85,285
|
|
||
Total cash distributions
|
$
|
98,051
|
|
|
$
|
98,051
|
|
|
|
|
|
||||
Cash distributions per unit applicable to limited partners
|
$
|
1.095
|
|
|
$
|
1.095
|
|
Quarter Ended
|
|
Cash Distributions Per Unit
|
|
Total Cash Distributions
|
|
Record Date
|
|
Payment Date
|
||||
|
|
|
|
(Thousands of Dollars)
|
|
|
|
|
||||
March 31, 2016 (a)
|
|
$
|
1.095
|
|
|
$
|
98,051
|
|
|
May 9, 2016
|
|
May 13, 2016
|
December 31, 2015
|
|
$
|
1.095
|
|
|
$
|
98,051
|
|
|
February 8, 2016
|
|
February 12, 2016
|
(a)
|
The distribution was announced on
April 27, 2016
.
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(Thousands of Dollars,
Except Unit and Per Unit Data)
|
||||||
Net income attributable to NuStar Energy L.P.
|
$
|
57,401
|
|
|
$
|
127,899
|
|
Less: Distributions to general partner (including incentive distribution rights)
|
12,766
|
|
|
12,766
|
|
||
Less: DERs to restricted units
|
713
|
|
|
—
|
|
||
Less: Distributions to limited partner
|
85,285
|
|
|
85,285
|
|
||
Distributions (in excess of) less than earnings
|
$
|
(41,363
|
)
|
|
$
|
29,848
|
|
|
|
|
|
||||
Net income attributable to limited parter units:
|
|
|
|
||||
Distributions to limited partner
|
$
|
85,285
|
|
|
$
|
85,285
|
|
Allocation of distributions (in excess of) less than earnings
|
(40,535
|
)
|
|
29,251
|
|
||
Total
|
$
|
44,750
|
|
|
$
|
114,536
|
|
|
|
|
|
||||
Basic weighted-average limited partner units outstanding
|
77,886,078
|
|
|
77,886,078
|
|
||
|
|
|
|
||||
Diluted units outstanding:
|
|
|
|
||||
Basic weighted-average limited partner units outstanding
|
77,886,078
|
|
|
77,886,078
|
|
||
Effect of dilutive participating securities
|
70,746
|
|
|
—
|
|
||
Diluted weighted-average limited partner units outstanding
|
77,956,824
|
|
|
77,886,078
|
|
||
|
|
|
|
||||
Basic and diluted net income per unit applicable to limited partners
|
$
|
0.57
|
|
|
$
|
1.47
|
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(Thousands of Dollars)
|
||||||
Decrease (increase) in current assets:
|
|
|
|
||||
Accounts receivable
|
$
|
11,706
|
|
|
$
|
19,654
|
|
Inventories
|
(2,398
|
)
|
|
11,997
|
|
||
Other current assets
|
5,613
|
|
|
10,963
|
|
||
Increase (decrease) in current liabilities:
|
|
|
|
||||
Accounts payable
|
(3,370
|
)
|
|
(21,776
|
)
|
||
Payable to related party, net
|
(1,575
|
)
|
|
1,145
|
|
||
Accrued interest payable
|
(6,389
|
)
|
|
(5,948
|
)
|
||
Accrued liabilities
|
(16,859
|
)
|
|
(23,191
|
)
|
||
Taxes other than income tax
|
593
|
|
|
(1,738
|
)
|
||
Income tax payable
|
189
|
|
|
1,120
|
|
||
Changes in current assets and current liabilities
|
$
|
(12,490
|
)
|
|
$
|
(7,774
|
)
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(Thousands of Dollars)
|
||||||
Cash paid for interest, net of amount capitalized
|
$
|
41,079
|
|
|
$
|
38,044
|
|
Cash paid for income taxes, net of tax refunds received
|
$
|
2,742
|
|
|
$
|
1,738
|
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(Thousands of Dollars)
|
||||||
Revenues:
|
|
|
|
||||
Pipeline
|
$
|
118,873
|
|
|
$
|
124,425
|
|
Storage:
|
|
|
|
||||
Third parties
|
146,384
|
|
|
144,085
|
|
||
Intersegment
|
6,015
|
|
|
6,249
|
|
||
Total storage
|
152,399
|
|
|
150,334
|
|
||
Fuels Marketing
|
140,446
|
|
|
286,434
|
|
||
Consolidation and intersegment eliminations
|
(6,015
|
)
|
|
(6,249
|
)
|
||
Total revenues
|
$
|
405,703
|
|
|
$
|
554,944
|
|
|
|
|
|
||||
Operating income (loss):
|
|
|
|
||||
Pipeline
|
$
|
64,265
|
|
|
$
|
68,640
|
|
Storage
|
57,013
|
|
|
47,978
|
|
||
Fuels marketing
|
(773
|
)
|
|
9,925
|
|
||
Consolidation and intersegment eliminations
|
—
|
|
|
43
|
|
||
Total segment operating income
|
120,505
|
|
|
126,586
|
|
||
General and administrative expenses
|
23,785
|
|
|
25,053
|
|
||
Other depreciation and amortization expense
|
2,155
|
|
|
2,252
|
|
||
Total operating income
|
$
|
94,565
|
|
|
$
|
99,281
|
|
|
March 31,
2016 |
|
December 31,
2015 |
||||
|
(Thousands of Dollars)
|
||||||
Pipeline
|
$
|
1,999,202
|
|
|
$
|
2,014,098
|
|
Storage
|
2,471,658
|
|
|
2,476,389
|
|
||
Fuels marketing
|
144,921
|
|
|
156,866
|
|
||
Total segment assets
|
4,615,781
|
|
|
4,647,353
|
|
||
Other partnership assets
|
479,768
|
|
|
478,172
|
|
||
Total consolidated assets
|
$
|
5,095,549
|
|
|
$
|
5,125,525
|
|
|
NuStar
Energy
|
|
NuStar
Logistics
|
|
NuPOP
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
879
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
130,034
|
|
|
$
|
—
|
|
|
$
|
130,917
|
|
Receivables, net
|
—
|
|
|
727
|
|
|
—
|
|
|
135,037
|
|
|
—
|
|
|
135,764
|
|
||||||
Inventories
|
—
|
|
|
1,929
|
|
|
5,755
|
|
|
33,489
|
|
|
—
|
|
|
41,173
|
|
||||||
Other current assets
|
93
|
|
|
8,088
|
|
|
4,402
|
|
|
13,136
|
|
|
—
|
|
|
25,719
|
|
||||||
Intercompany receivable
|
—
|
|
|
1,574,862
|
|
|
—
|
|
|
—
|
|
|
(1,574,862
|
)
|
|
—
|
|
||||||
Total current assets
|
972
|
|
|
1,585,610
|
|
|
10,157
|
|
|
311,696
|
|
|
(1,574,862
|
)
|
|
333,573
|
|
||||||
Property, plant and equipment, net
|
—
|
|
|
1,919,232
|
|
|
568,355
|
|
|
1,199,100
|
|
|
—
|
|
|
3,686,687
|
|
||||||
Intangible assets, net
|
—
|
|
|
47,251
|
|
|
—
|
|
|
61,300
|
|
|
—
|
|
|
108,551
|
|
||||||
Goodwill
|
—
|
|
|
149,453
|
|
|
170,652
|
|
|
376,532
|
|
|
—
|
|
|
696,637
|
|
||||||
Investment in wholly owned
subsidiaries
|
2,165,781
|
|
|
45,432
|
|
|
1,056,445
|
|
|
909,821
|
|
|
(4,177,479
|
)
|
|
—
|
|
||||||
Deferred income tax asset
|
—
|
|
|
—
|
|
|
—
|
|
|
1,681
|
|
|
(1,179
|
)
|
|
502
|
|
||||||
Other long-term assets, net
|
939
|
|
|
228,901
|
|
|
26,329
|
|
|
13,430
|
|
|
—
|
|
|
269,599
|
|
||||||
Total assets
|
$
|
2,167,692
|
|
|
$
|
3,975,879
|
|
|
$
|
1,831,938
|
|
|
$
|
2,873,560
|
|
|
$
|
(5,753,520
|
)
|
|
$
|
5,095,549
|
|
Liabilities and Partners’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Payables
|
$
|
—
|
|
|
$
|
25,923
|
|
|
$
|
7,470
|
|
|
$
|
67,389
|
|
|
$
|
—
|
|
|
$
|
100,782
|
|
Short-term debt
|
—
|
|
|
81,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
81,000
|
|
||||||
Accrued interest payable
|
—
|
|
|
27,874
|
|
|
—
|
|
|
23
|
|
|
—
|
|
|
27,897
|
|
||||||
Accrued liabilities
|
645
|
|
|
7,778
|
|
|
8,235
|
|
|
26,697
|
|
|
—
|
|
|
43,355
|
|
||||||
Taxes other than income tax
|
189
|
|
|
4,128
|
|
|
4,345
|
|
|
4,937
|
|
|
—
|
|
|
13,599
|
|
||||||
Income tax payable
|
—
|
|
|
1,708
|
|
|
12
|
|
|
4,437
|
|
|
—
|
|
|
6,157
|
|
||||||
Intercompany payable
|
505,634
|
|
|
—
|
|
|
894,589
|
|
|
174,639
|
|
|
(1,574,862
|
)
|
|
—
|
|
||||||
Total current liabilities
|
506,468
|
|
|
148,411
|
|
|
914,651
|
|
|
278,122
|
|
|
(1,574,862
|
)
|
|
272,790
|
|
||||||
Long-term debt
|
—
|
|
|
3,077,717
|
|
|
—
|
|
|
47,933
|
|
|
—
|
|
|
3,125,650
|
|
||||||
Deferred income tax liability
|
—
|
|
|
1,143
|
|
|
36
|
|
|
25,841
|
|
|
(1,179
|
)
|
|
25,841
|
|
||||||
Other long-term liabilities
|
—
|
|
|
48,194
|
|
|
7,460
|
|
|
57,962
|
|
|
—
|
|
|
113,616
|
|
||||||
Total partners’ equity
|
1,661,224
|
|
|
700,414
|
|
|
909,791
|
|
|
2,463,702
|
|
|
(4,177,479
|
)
|
|
1,557,652
|
|
||||||
Total liabilities and
partners’ equity
|
$
|
2,167,692
|
|
|
$
|
3,975,879
|
|
|
$
|
1,831,938
|
|
|
$
|
2,873,560
|
|
|
$
|
(5,753,520
|
)
|
|
$
|
5,095,549
|
|
|
NuStar
Energy
|
|
NuStar
Logistics
|
|
NuPOP
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
885
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
117,973
|
|
|
$
|
—
|
|
|
$
|
118,862
|
|
Receivables, net
|
—
|
|
|
419
|
|
|
—
|
|
|
144,645
|
|
|
—
|
|
|
145,064
|
|
||||||
Inventories
|
—
|
|
|
1,776
|
|
|
3,648
|
|
|
33,325
|
|
|
—
|
|
|
38,749
|
|
||||||
Other current assets
|
140
|
|
|
11,026
|
|
|
497
|
|
|
19,513
|
|
|
—
|
|
|
31,176
|
|
||||||
Intercompany receivable
|
—
|
|
|
1,610,370
|
|
|
—
|
|
|
—
|
|
|
(1,610,370
|
)
|
|
—
|
|
||||||
Total current assets
|
1,025
|
|
|
1,623,595
|
|
|
4,145
|
|
|
315,456
|
|
|
(1,610,370
|
)
|
|
333,851
|
|
||||||
Property, plant and equipment, net
|
—
|
|
|
1,915,370
|
|
|
570,415
|
|
|
1,197,786
|
|
|
—
|
|
|
3,683,571
|
|
||||||
Intangible assets, net
|
—
|
|
|
48,961
|
|
|
—
|
|
|
63,050
|
|
|
—
|
|
|
112,011
|
|
||||||
Goodwill
|
—
|
|
|
149,453
|
|
|
170,652
|
|
|
376,532
|
|
|
—
|
|
|
696,637
|
|
||||||
Investment in wholly owned
subsidiaries
|
2,205,904
|
|
|
48,547
|
|
|
1,031,162
|
|
|
915,115
|
|
|
(4,200,728
|
)
|
|
—
|
|
||||||
Deferred income tax asset
|
—
|
|
|
—
|
|
|
—
|
|
|
4,037
|
|
|
(1,179
|
)
|
|
2,858
|
|
||||||
Other long-term assets, net
|
933
|
|
|
255,957
|
|
|
26,329
|
|
|
13,378
|
|
|
—
|
|
|
296,597
|
|
||||||
Total assets
|
$
|
2,207,862
|
|
|
$
|
4,041,883
|
|
|
$
|
1,802,703
|
|
|
$
|
2,885,354
|
|
|
$
|
(5,812,277
|
)
|
|
$
|
5,125,525
|
|
Liabilities and Partners’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Payables
|
$
|
12
|
|
|
$
|
52,650
|
|
|
$
|
11,193
|
|
|
$
|
76,091
|
|
|
$
|
—
|
|
|
$
|
139,946
|
|
Short-term debt
|
—
|
|
|
84,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
84,000
|
|
||||||
Accrued interest payable
|
—
|
|
|
34,271
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
34,286
|
|
||||||
Accrued liabilities
|
723
|
|
|
32,816
|
|
|
5,753
|
|
|
15,902
|
|
|
—
|
|
|
55,194
|
|
||||||
Taxes other than income tax
|
126
|
|
|
6,452
|
|
|
3,325
|
|
|
2,907
|
|
|
—
|
|
|
12,810
|
|
||||||
Income tax payable
|
—
|
|
|
1,362
|
|
|
9
|
|
|
4,606
|
|
|
—
|
|
|
5,977
|
|
||||||
Intercompany payable
|
508,363
|
|
|
—
|
|
|
858,018
|
|
|
243,989
|
|
|
(1,610,370
|
)
|
|
—
|
|
||||||
Total current liabilities
|
509,224
|
|
|
211,551
|
|
|
878,298
|
|
|
343,510
|
|
|
(1,610,370
|
)
|
|
332,213
|
|
||||||
Long-term debt
|
—
|
|
|
3,002,743
|
|
|
—
|
|
|
52,869
|
|
|
—
|
|
|
3,055,612
|
|
||||||
Long-term payable to related party
|
—
|
|
|
26,638
|
|
|
—
|
|
|
5,442
|
|
|
—
|
|
|
32,080
|
|
||||||
Deferred income tax liability
|
—
|
|
|
1,143
|
|
|
36
|
|
|
24,810
|
|
|
(1,179
|
)
|
|
24,810
|
|
||||||
Other long-term liabilities
|
—
|
|
|
37,209
|
|
|
9,294
|
|
|
24,463
|
|
|
—
|
|
|
70,966
|
|
||||||
Total partners’ equity
|
1,698,638
|
|
|
762,599
|
|
|
915,075
|
|
|
2,434,260
|
|
|
(4,200,728
|
)
|
|
1,609,844
|
|
||||||
Total liabilities and
partners’ equity
|
$
|
2,207,862
|
|
|
$
|
4,041,883
|
|
|
$
|
1,802,703
|
|
|
$
|
2,885,354
|
|
|
$
|
(5,812,277
|
)
|
|
$
|
5,125,525
|
|
|
NuStar
Energy
|
|
NuStar
Logistics
|
|
NuPOP
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues
|
$
|
—
|
|
|
$
|
126,578
|
|
|
$
|
47,985
|
|
|
$
|
231,476
|
|
|
$
|
(336
|
)
|
|
$
|
405,703
|
|
Costs and expenses
|
518
|
|
|
68,891
|
|
|
31,015
|
|
|
211,050
|
|
|
(336
|
)
|
|
311,138
|
|
||||||
Operating (loss) income
|
(518
|
)
|
|
57,687
|
|
|
16,970
|
|
|
20,426
|
|
|
—
|
|
|
94,565
|
|
||||||
Equity in earnings (loss) of
subsidiaries
|
57,922
|
|
|
(3,115
|
)
|
|
25,283
|
|
|
43,743
|
|
|
(123,833
|
)
|
|
—
|
|
||||||
Interest (expense) income, net
|
—
|
|
|
(39,632
|
)
|
|
1,508
|
|
|
8,352
|
|
|
(4,351
|
)
|
|
(34,123
|
)
|
||||||
Other income (expense), net
|
—
|
|
|
1
|
|
|
(17
|
)
|
|
(155
|
)
|
|
—
|
|
|
(171
|
)
|
||||||
Income before income tax
expense
|
57,404
|
|
|
14,941
|
|
|
43,744
|
|
|
72,366
|
|
|
(128,184
|
)
|
|
60,271
|
|
||||||
Income tax expense
|
3
|
|
|
346
|
|
|
2
|
|
|
2,519
|
|
|
—
|
|
|
2,870
|
|
||||||
Net income
|
$
|
57,401
|
|
|
$
|
14,595
|
|
|
$
|
43,742
|
|
|
$
|
69,847
|
|
|
$
|
(128,184
|
)
|
|
$
|
57,401
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income (loss)
|
$
|
57,401
|
|
|
$
|
(13,161
|
)
|
|
$
|
43,742
|
|
|
$
|
82,825
|
|
|
$
|
(128,184
|
)
|
|
$
|
42,623
|
|
|
NuStar
Energy
|
|
NuStar
Logistics
|
|
NuPOP
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues
|
$
|
—
|
|
|
$
|
134,036
|
|
|
$
|
52,574
|
|
|
$
|
368,661
|
|
|
$
|
(327
|
)
|
|
$
|
554,944
|
|
Costs and expenses
|
490
|
|
|
72,906
|
|
|
33,124
|
|
|
349,512
|
|
|
(369
|
)
|
|
455,663
|
|
||||||
Operating (loss) income
|
(490
|
)
|
|
61,130
|
|
|
19,450
|
|
|
19,149
|
|
|
42
|
|
|
99,281
|
|
||||||
Equity in earnings (loss) of
subsidiaries
|
128,389
|
|
|
(4,164
|
)
|
|
81,699
|
|
|
101,273
|
|
|
(307,197
|
)
|
|
—
|
|
||||||
Interest (expense) income, net
|
—
|
|
|
(32,174
|
)
|
|
119
|
|
|
18
|
|
|
—
|
|
|
(32,037
|
)
|
||||||
Other income, net
|
—
|
|
|
1,340
|
|
|
2
|
|
|
60,926
|
|
|
—
|
|
|
62,268
|
|
||||||
Income from continuing
operations before income tax
(benefit) expense
|
127,899
|
|
|
26,132
|
|
|
101,270
|
|
|
181,366
|
|
|
(307,155
|
)
|
|
129,512
|
|
||||||
Income tax (benefit) expense
|
—
|
|
|
(1,026
|
)
|
|
—
|
|
|
3,413
|
|
|
—
|
|
|
2,387
|
|
||||||
Income from continuing
operations
|
127,899
|
|
|
27,158
|
|
|
101,270
|
|
|
177,953
|
|
|
(307,155
|
)
|
|
127,125
|
|
||||||
Income from discontinued
operations, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
774
|
|
|
—
|
|
|
774
|
|
||||||
Net income
|
$
|
127,899
|
|
|
$
|
27,158
|
|
|
$
|
101,270
|
|
|
$
|
178,727
|
|
|
$
|
(307,155
|
)
|
|
$
|
127,899
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income
|
$
|
127,899
|
|
|
$
|
27,661
|
|
|
$
|
101,270
|
|
|
$
|
158,123
|
|
|
$
|
(307,155
|
)
|
|
$
|
107,798
|
|
|
|
|
NuStar
Energy
|
|
NuStar
Logistics
|
|
NuPOP
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Net cash provided by operating
activities
|
$
|
97,539
|
|
|
$
|
7,958
|
|
|
$
|
18,028
|
|
|
$
|
129,635
|
|
|
$
|
(151,433
|
)
|
|
$
|
101,727
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital expenditures
|
—
|
|
|
(28,899
|
)
|
|
(5,442
|
)
|
|
(11,835
|
)
|
|
—
|
|
|
(46,176
|
)
|
||||||
Change in accounts payable
related to capital expenditures
|
—
|
|
|
(7,637
|
)
|
|
(74
|
)
|
|
(4,952
|
)
|
|
—
|
|
|
(12,663
|
)
|
||||||
Net cash used in investing activities
|
—
|
|
|
(36,536
|
)
|
|
(5,516
|
)
|
|
(16,787
|
)
|
|
—
|
|
|
(58,839
|
)
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Debt borrowings
|
—
|
|
|
296,089
|
|
|
—
|
|
|
6,000
|
|
|
—
|
|
|
302,089
|
|
||||||
Debt repayments
|
—
|
|
|
(219,709
|
)
|
|
—
|
|
|
(11,000
|
)
|
|
—
|
|
|
(230,709
|
)
|
||||||
Distributions to unitholders
and general partner
|
(98,051
|
)
|
|
(49,026
|
)
|
|
(49,025
|
)
|
|
(49,031
|
)
|
|
147,082
|
|
|
(98,051
|
)
|
||||||
Net intercompany activity
|
507
|
|
|
2,998
|
|
|
36,513
|
|
|
(44,369
|
)
|
|
4,351
|
|
|
—
|
|
||||||
Other, net
|
(1
|
)
|
|
(1,774
|
)
|
|
—
|
|
|
(7,029
|
)
|
|
—
|
|
|
(8,804
|
)
|
||||||
Net cash (used in) provided by
financing activities
|
(97,545
|
)
|
|
28,578
|
|
|
(12,512
|
)
|
|
(105,429
|
)
|
|
151,433
|
|
|
(35,475
|
)
|
||||||
Effect of foreign exchange rate
changes on cash
|
—
|
|
|
—
|
|
|
—
|
|
|
4,642
|
|
|
—
|
|
|
4,642
|
|
||||||
Net (decrease) increase in cash
and cash equivalents
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
12,061
|
|
|
—
|
|
|
12,055
|
|
||||||
Cash and cash equivalents as of the
beginning of the period
|
885
|
|
|
4
|
|
|
—
|
|
|
117,973
|
|
|
—
|
|
|
118,862
|
|
||||||
Cash and cash equivalents as of the
end of the period
|
$
|
879
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
130,034
|
|
|
$
|
—
|
|
|
$
|
130,917
|
|
|
NuStar
Energy
|
|
NuStar
Logistics
|
|
NuPOP
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Net cash provided by operating
activities
|
$
|
97,235
|
|
|
$
|
40,425
|
|
|
$
|
35,918
|
|
|
$
|
96,086
|
|
|
$
|
(147,082
|
)
|
|
$
|
122,582
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital expenditures
|
—
|
|
|
(58,476
|
)
|
|
(4,651
|
)
|
|
(9,753
|
)
|
|
—
|
|
|
(72,880
|
)
|
||||||
Change in accounts payable
related to capital expenditures
|
—
|
|
|
(8,554
|
)
|
|
(516
|
)
|
|
(4,394
|
)
|
|
—
|
|
|
(13,464
|
)
|
||||||
Acquisitions
|
—
|
|
|
—
|
|
|
—
|
|
|
(142,500
|
)
|
|
—
|
|
|
(142,500
|
)
|
||||||
Investment in other long-term
assets
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,177
|
)
|
|
—
|
|
|
(2,177
|
)
|
||||||
Proceeds from sale or disposition
of assets
|
—
|
|
|
9
|
|
|
4
|
|
|
1,172
|
|
|
—
|
|
|
1,185
|
|
||||||
Net cash used in investing activities
|
—
|
|
|
(67,021
|
)
|
|
(5,163
|
)
|
|
(157,652
|
)
|
|
—
|
|
|
(229,836
|
)
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Debt borrowings
|
—
|
|
|
493,532
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
493,532
|
|
||||||
Debt repayments
|
—
|
|
|
(277,166
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(277,166
|
)
|
||||||
Distributions to unitholders and
general partner
|
(98,051
|
)
|
|
(49,025
|
)
|
|
(49,026
|
)
|
|
(49,031
|
)
|
|
147,082
|
|
|
(98,051
|
)
|
||||||
Net intercompany activity
|
816
|
|
|
(134,700
|
)
|
|
18,271
|
|
|
115,613
|
|
|
—
|
|
|
—
|
|
||||||
Other, net
|
—
|
|
|
(6,045
|
)
|
|
—
|
|
|
(8,259
|
)
|
|
—
|
|
|
(14,304
|
)
|
||||||
Net cash (used in) provided by
financing activities
|
(97,235
|
)
|
|
26,596
|
|
|
(30,755
|
)
|
|
58,323
|
|
|
147,082
|
|
|
104,011
|
|
||||||
Effect of foreign exchange rate
changes on cash
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,486
|
)
|
|
—
|
|
|
(6,486
|
)
|
||||||
Net decrease in cash and
cash equivalents
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,729
|
)
|
|
—
|
|
|
(9,729
|
)
|
||||||
Cash and cash equivalents as of the
beginning of the period
|
923
|
|
|
6
|
|
|
—
|
|
|
86,983
|
|
|
—
|
|
|
87,912
|
|
||||||
Cash and cash equivalents as of the
end of the period
|
$
|
923
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
77,254
|
|
|
$
|
—
|
|
|
$
|
78,183
|
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
•
|
Overview
|
•
|
Results of Operations
|
•
|
Trends and Outlook
|
•
|
Liquidity and Capital Resources
|
•
|
Related Party Transactions
|
•
|
Critical Accounting Policies
|
•
|
New Accounting Pronouncements
|
•
|
company-specific factors, such as facility integrity issues and maintenance requirements that impact the throughput rates of our assets;
|
•
|
seasonal factors that affect the demand for products transported by and/or stored in our assets and the demand for products we sell;
|
•
|
industry factors, such as changes in the prices of petroleum products that affect demand and operations of our competitors;
|
•
|
factors such as commodity price volatility that impact our fuels marketing segment; and
|
•
|
other factors, such as refinery utilization rates and maintenance turnaround schedules, that impact the operations of refineries served by our pipeline and storage assets.
|
|
Three Months Ended March 31,
|
|
Change
|
||||||||
|
2016
|
|
2015
|
|
|||||||
Statement of Income Data:
|
|
|
|
|
|
||||||
Revenues:
|
|
|
|
|
|
||||||
Service revenues
|
$
|
266,566
|
|
|
$
|
269,973
|
|
|
$
|
(3,407
|
)
|
Product sales
|
139,137
|
|
|
284,971
|
|
|
(145,834
|
)
|
|||
Total revenues
|
405,703
|
|
|
554,944
|
|
|
(149,241
|
)
|
|||
|
|
|
|
|
|
||||||
Costs and expenses:
|
|
|
|
|
|
||||||
Cost of product sales
|
128,990
|
|
|
262,506
|
|
|
(133,516
|
)
|
|||
Operating expenses
|
105,221
|
|
|
115,647
|
|
|
(10,426
|
)
|
|||
General and administrative expenses
|
23,785
|
|
|
25,053
|
|
|
(1,268
|
)
|
|||
Depreciation and amortization expense
|
53,142
|
|
|
52,457
|
|
|
685
|
|
|||
Total costs and expenses
|
311,138
|
|
|
455,663
|
|
|
(144,525
|
)
|
|||
|
|
|
|
|
|
||||||
Operating income
|
94,565
|
|
|
99,281
|
|
|
(4,716
|
)
|
|||
Interest expense, net
|
(34,123
|
)
|
|
(32,037
|
)
|
|
(2,086
|
)
|
|||
Other (expense) income, net
|
(171
|
)
|
|
62,268
|
|
|
(62,439
|
)
|
|||
Income from continuing operations before income tax expense
|
60,271
|
|
|
129,512
|
|
|
(69,241
|
)
|
|||
Income tax expense
|
2,870
|
|
|
2,387
|
|
|
483
|
|
|||
Income from continuing operations
|
57,401
|
|
|
127,125
|
|
|
(69,724
|
)
|
|||
Income from discontinued operations, net of tax
|
—
|
|
|
774
|
|
|
(774
|
)
|
|||
Net income
|
$
|
57,401
|
|
|
$
|
127,899
|
|
|
$
|
(70,498
|
)
|
Basic and diluted net income per unit applicable to limited partners:
|
|
|
|
|
|
||||||
Continuing operations
|
$
|
0.57
|
|
|
$
|
1.46
|
|
|
$
|
(0.89
|
)
|
Discontinued operations
|
—
|
|
|
0.01
|
|
|
(0.01
|
)
|
|||
Total
|
$
|
0.57
|
|
|
$
|
1.47
|
|
|
$
|
(0.90
|
)
|
Basic weighted-average limited partner units outstanding
|
77,886,078
|
|
|
77,886,078
|
|
|
—
|
|
|
Three Months Ended March 31,
|
|
Change
|
||||||||
|
2016
|
|
2015
|
|
|||||||
Pipeline:
|
|
|
|
|
|
||||||
Refined products pipelines throughput (barrels/day)
|
521,272
|
|
|
506,381
|
|
|
14,891
|
|
|||
Crude oil pipelines throughput (barrels/day)
|
411,109
|
|
|
506,272
|
|
|
(95,163
|
)
|
|||
Total throughput (barrels/day)
|
932,381
|
|
|
1,012,653
|
|
|
(80,272
|
)
|
|||
Throughput revenues
|
$
|
118,873
|
|
|
$
|
124,425
|
|
|
$
|
(5,552
|
)
|
Operating expenses
|
33,004
|
|
|
35,308
|
|
|
(2,304
|
)
|
|||
Depreciation and amortization expense
|
21,604
|
|
|
20,477
|
|
|
1,127
|
|
|||
Segment operating income
|
$
|
64,265
|
|
|
$
|
68,640
|
|
|
$
|
(4,375
|
)
|
Storage:
|
|
|
|
|
|
||||||
Throughput (barrels/day)
|
828,327
|
|
|
880,271
|
|
|
(51,944
|
)
|
|||
Throughput revenues
|
$
|
29,400
|
|
|
$
|
31,691
|
|
|
$
|
(2,291
|
)
|
Storage lease revenues
|
122,999
|
|
|
118,643
|
|
|
4,356
|
|
|||
Total revenues
|
152,399
|
|
|
150,334
|
|
|
2,065
|
|
|||
Operating expenses
|
66,003
|
|
|
72,628
|
|
|
(6,625
|
)
|
|||
Depreciation and amortization expense
|
29,383
|
|
|
29,728
|
|
|
(345
|
)
|
|||
Segment operating income
|
$
|
57,013
|
|
|
$
|
47,978
|
|
|
$
|
9,035
|
|
Fuels Marketing:
|
|
|
|
|
|
||||||
Product sales and other revenue
|
$
|
140,446
|
|
|
$
|
286,434
|
|
|
$
|
(145,988
|
)
|
Cost of product sales
|
132,581
|
|
|
266,218
|
|
|
(133,637
|
)
|
|||
Gross margin
|
7,865
|
|
|
20,216
|
|
|
(12,351
|
)
|
|||
Operating expenses
|
8,638
|
|
|
10,291
|
|
|
(1,653
|
)
|
|||
Depreciation and amortization expense
|
—
|
|
|
—
|
|
|
—
|
|
|||
Segment operating (loss) income
|
$
|
(773
|
)
|
|
$
|
9,925
|
|
|
$
|
(10,698
|
)
|
Consolidation and Intersegment Eliminations:
|
|
|
|
|
|
||||||
Revenues
|
$
|
(6,015
|
)
|
|
$
|
(6,249
|
)
|
|
$
|
234
|
|
Cost of product sales
|
(3,591
|
)
|
|
(3,712
|
)
|
|
121
|
|
|||
Operating expenses
|
(2,424
|
)
|
|
(2,580
|
)
|
|
156
|
|
|||
Total
|
$
|
—
|
|
|
$
|
43
|
|
|
$
|
(43
|
)
|
Consolidated Information:
|
|
|
|
|
|
||||||
Revenues
|
$
|
405,703
|
|
|
$
|
554,944
|
|
|
$
|
(149,241
|
)
|
Cost of product sales
|
128,990
|
|
|
262,506
|
|
|
(133,516
|
)
|
|||
Operating expenses
|
105,221
|
|
|
115,647
|
|
|
(10,426
|
)
|
|||
Depreciation and amortization expense
|
50,987
|
|
|
50,205
|
|
|
782
|
|
|||
Segment operating income
|
120,505
|
|
|
126,586
|
|
|
(6,081
|
)
|
|||
General and administrative expenses
|
23,785
|
|
|
25,053
|
|
|
(1,268
|
)
|
|||
Other depreciation and amortization expense
|
2,155
|
|
|
2,252
|
|
|
(97
|
)
|
|||
Consolidated operating income
|
$
|
94,565
|
|
|
$
|
99,281
|
|
|
$
|
(4,716
|
)
|
•
|
a decrease in revenues of $9.6 million and a decrease in throughputs of 82,101 barrels per day on our Eagle Ford System due to reduced production resulting from a sustained low crude oil price environment; and
|
•
|
a decrease in revenues of $1.4 million and a decrease in throughputs of 5,570 barrels per day on our Ammonia Pipeline partly due to a shipper’s facility reconfiguration, resulting in less barrels available for transportation.
|
•
|
an increase in revenues of $2.1 million, despite a decrease in throughputs of 5,421 barrels per day on our McKee System crude and refined products pipelines, due to increased long-haul deliveries;
|
•
|
an increase in revenues of $1.8 million and an increase in throughputs of 1,438 barrels per day on our North Pipeline due to increased refinery production and long-haul deliveries;
|
•
|
an increase in revenues of $1.1 million and an increase in throughputs of 5,182 barrels per day on our East Pipeline due to unfavorable market conditions in the first quarter of 2015; and
|
•
|
an increase in revenues of $0.5 million and an increase in throughputs of 8,894 barrels per day on our Burgos pipeline as a result of a project completed in 2015.
|
•
|
a decrease in revenues of $3.0 million and a decrease in throughputs of 81,370 barrels per day at our Corpus Christi North Beach terminal due to a decrease in Eagle Ford Shale crude oil being shipped to Corpus Christi, as discussed above in the pipeline segment; and
|
•
|
a decrease in revenues of $0.9 million and a decrease in throughputs of 30,628 barrels per day due to a turnaround at the refinery served by our Benicia crude oil storage tank facility in the first quarter of 2016.
|
•
|
a decrease of $5.1 million in operating expenses at our St. Eustatius terminal facility, mainly associated with property taxes in the first quarter of 2015 and lower regulatory and maintenance expense in 2016; and
|
•
|
a decrease of $0.9 million in regulatory and maintenance expenses mainly at our St. James terminal facility.
|
|
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(Thousands of Dollars)
|
||||||
Net cash provided by (used in):
|
|
|
|
||||
Operating activities
|
$
|
101,727
|
|
|
$
|
122,582
|
|
Investing activities
|
(58,839
|
)
|
|
(229,836
|
)
|
||
Financing activities
|
(35,475
|
)
|
|
104,011
|
|
||
Effect of foreign exchange rate changes on cash
|
4,642
|
|
|
(6,486
|
)
|
||
Net increase (decrease) in cash and cash equivalents
|
$
|
12,055
|
|
|
$
|
(9,729
|
)
|
•
|
$365.4 million in revenue bonds pursuant to the Gulf Opportunity Zone Act of 2005 (the GoZone Bonds), with
$49.3 million
remaining in trust as of
March 31, 2016
, supported by $370.2 million in letters of credit issued by individual banks that do not restrict the amount we can borrow under our revolving credit agreement.
|
•
|
a $125.0 million receivables financing agreement between NuStar Energy, NuStar Finance LLC and third-party lenders (the Receivables Financing Agreement), with the amount available for borrowing based on the availability of eligible receivables and other customary factors and conditions; and
|
•
|
two short-term line of credit agreements with an aggregate uncommitted borrowing capacity of up to $105.0 million with
$81.0 million
outstanding as of
March 31, 2016
.
|
•
|
reliability capital expenditures, such as those required to maintain the existing operating capacity of existing assets or extend their useful lives, as well as those required to maintain equipment reliability and safety; and
|
•
|
strategic capital expenditures, such as those to expand or upgrade the operating capacity, increase efficiency or increase the earnings potential of existing assets, whether through construction or acquisition, as well as certain capital expenditures related to support functions.
|
|
Reliability Capital Expenditures
|
|
Strategic Capital Expenditures
|
|
Total
|
||||||
|
(Thousands of Dollars)
|
||||||||||
For the three months ended March 31:
|
|
|
|
|
|
||||||
2015
|
$
|
6,798
|
|
|
$
|
210,759
|
|
|
$
|
217,557
|
|
2016
|
$
|
6,017
|
|
|
$
|
40,159
|
|
|
$
|
46,176
|
|
|
|
|
|
|
|
||||||
Expected for the year ended December 31, 2016
|
$ 35,000 - 45,000
|
|
|
$ 180,000 - 200,000
|
|
|
$ 215,000 - 245,000
|
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(Thousands of Dollars, Except Per Unit Data)
|
||||||
General partner interest
|
$
|
1,961
|
|
|
$
|
1,961
|
|
General partner incentive distribution
|
10,805
|
|
|
10,805
|
|
||
Total general partner distribution
|
12,766
|
|
|
12,766
|
|
||
Limited partners’ distribution
|
85,285
|
|
|
85,285
|
|
||
Total cash distributions
|
$
|
98,051
|
|
|
$
|
98,051
|
|
|
|
|
|
||||
Cash distributions per unit applicable to limited partners
|
$
|
1.095
|
|
|
$
|
1.095
|
|
Quarter Ended
|
|
Cash Distributions Per Unit
|
|
Total Cash Distributions
|
|
Record Date
|
|
Payment Date
|
||||
|
|
|
|
(Thousands of Dollars)
|
|
|
|
|
||||
March 31, 2016 (a)
|
|
$
|
1.095
|
|
|
$
|
98,051
|
|
|
May 9, 2016
|
|
May 13, 2016
|
December 31, 2015
|
|
$
|
1.095
|
|
|
$
|
98,051
|
|
|
February 8, 2016
|
|
February 12, 2016
|
(a)
|
The distribution was announced on
April 27, 2016
.
|
•
|
revolving credit agreement due October 29, 2019, with a balance of $958.3 million as of
March 31, 2016
;
|
•
|
7.65% senior notes due April 15, 2018 with a face value of $350.0 million; 4.80% senior notes due September 1, 2020 with a face value of $450.0 million; 6.75% senior notes due February 1, 2021 with a face value of $300.0 million; 4.75% senior notes due February 1, 2022 with a face value of $250.0 million; and 7.625% subordinated notes due January 15, 2043 with a face value of $402.5 million;
|
•
|
$365.4 million in GoZone Bonds due from 2038 to 2041;
|
•
|
$105.0 million line of credit agreements with
$81.0 million
outstanding as of
March 31, 2016
; and
|
•
|
Receivables Financing Agreement due June 15, 2018, with
$48.5 million
of borrowings outstanding as of
March 31, 2016
.
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
|
March 31, 2016
|
||||||||||||||||||||||||||||||
|
Expected Maturity Dates
|
|
|
|
|
||||||||||||||||||||||||||
|
2016
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
There-
after
|
|
Total
|
|
Fair
Value
|
||||||||||||||||
|
(Thousands of Dollars, Except Interest Rates)
|
||||||||||||||||||||||||||||||
Long-term Debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Fixed-rate
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
350,000
|
|
|
$
|
—
|
|
|
$
|
450,000
|
|
|
$
|
952,500
|
|
|
$
|
1,752,500
|
|
|
$
|
1,606,832
|
|
Weighted-average
interest rate
|
—
|
|
|
—
|
|
|
8.2
|
%
|
|
—
|
|
|
4.8
|
%
|
|
6.6
|
%
|
|
6.4
|
%
|
|
|
|||||||||
Variable-rate
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
48,500
|
|
|
$
|
958,312
|
|
|
$
|
—
|
|
|
$
|
365,440
|
|
|
$
|
1,372,252
|
|
|
$
|
1,373,334
|
|
Weighted-average
interest rate
|
—
|
|
|
—
|
|
|
1.3
|
%
|
|
2.2
|
%
|
|
—
|
|
|
0.4
|
%
|
|
1.7
|
%
|
|
|
|
December 31, 2015
|
||||||||||||||||||||||||||||||
|
Expected Maturity Dates
|
|
|
|
|
||||||||||||||||||||||||||
|
2016
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
There-
after
|
|
Total
|
|
Fair
Value
|
||||||||||||||||
|
(Thousands of Dollars, Except Interest Rates)
|
||||||||||||||||||||||||||||||
Long-term Debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Fixed-rate
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
350,000
|
|
|
$
|
—
|
|
|
$
|
450,000
|
|
|
$
|
952,500
|
|
|
$
|
1,752,500
|
|
|
$
|
1,626,785
|
|
Weighted-average
interest rate
|
—
|
|
|
—
|
|
|
8.2
|
%
|
|
—
|
%
|
|
4.8
|
%
|
|
6.6
|
%
|
|
6.4
|
%
|
|
|
|||||||||
Variable-rate
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
53,500
|
|
|
$
|
882,664
|
|
|
$
|
—
|
|
|
$
|
365,440
|
|
|
$
|
1,301,604
|
|
|
$
|
1,302,653
|
|
Weighted-average
interest rate
|
—
|
|
|
—
|
|
|
1.2
|
%
|
|
2.1
|
%
|
|
—
|
|
|
0.1
|
%
|
|
1.5
|
%
|
|
|
Notional Amount
|
|
|
|
Weighted-Average Fixed Rate
|
|
Fair Value
|
||||||||||||||||
March 31, 2016
|
|
December 31, 2015
|
|
Period of Hedge
|
|
March 31, 2016
|
|
December 31, 2015
|
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||
(Thousands of Dollars)
|
|
|
|
|
|
|
|
(Thousands of Dollars)
|
||||||||||||||
$
|
350,000
|
|
|
$
|
350,000
|
|
|
04/2018 - 04/2028
|
|
2.6
|
%
|
|
2.6
|
%
|
|
$
|
(19,094
|
)
|
|
$
|
140
|
|
250,000
|
|
|
250,000
|
|
|
09/2020 - 09/2030
|
|
2.8
|
%
|
|
2.8
|
%
|
|
(9,581
|
)
|
|
1,163
|
|
||||
$
|
600,000
|
|
|
$
|
600,000
|
|
|
|
|
2.7
|
%
|
|
2.7
|
%
|
|
$
|
(28,675
|
)
|
|
$
|
1,303
|
|
|
March 31, 2016
|
|||||||||||||
|
Contract
Volumes
|
|
Weighted Average
|
|
Fair Value of
Current
Asset (Liability)
|
|||||||||
Pay Price
|
|
Receive Price
|
|
|||||||||||
|
(Thousands
of Barrels)
|
|
|
|
|
|
(Thousands of
Dollars)
|
|||||||
Fair Value Hedges:
|
|
|
|
|
|
|
|
|||||||
Futures – long:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
3
|
|
|
$
|
49.79
|
|
|
N/A
|
|
|
$
|
—
|
|
|
Futures – short:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
50
|
|
|
N/A
|
|
|
$
|
49.10
|
|
|
$
|
(35
|
)
|
|
Swaps - long:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
10
|
|
|
$
|
24.60
|
|
|
N/A
|
|
|
$
|
3
|
|
|
Swaps - short:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
552
|
|
|
N/A
|
|
|
$
|
25.22
|
|
|
$
|
(238
|
)
|
|
|
|
|
|
|
|
|
|
|||||||
Economic Hedges and Other Derivatives:
|
|
|
|
|
|
|
|
|||||||
Futures – long:
|
|
|
|
|
|
|
|
|||||||
(crude oil and refined products)
|
83
|
|
|
$
|
43.01
|
|
|
N/A
|
|
|
$
|
(21
|
)
|
|
Futures – short:
|
|
|
|
|
|
|
|
|||||||
(crude oil and refined products)
|
271
|
|
|
N/A
|
|
|
$
|
38.35
|
|
|
$
|
(125
|
)
|
|
Swaps – long:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
1,352
|
|
|
$
|
22.34
|
|
|
N/A
|
|
|
$
|
2,841
|
|
|
Swaps – short:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
1,225
|
|
|
N/A
|
|
|
$
|
23.51
|
|
|
$
|
(1,082
|
)
|
|
Forward purchase contracts:
|
|
|
|
|
|
|
|
|||||||
(crude oil)
|
240
|
|
|
$
|
39.07
|
|
|
N/A
|
|
|
$
|
42
|
|
|
Forward sales contracts:
|
|
|
|
|
|
|
|
|||||||
(crude oil)
|
240
|
|
|
N/A
|
|
|
$
|
38.81
|
|
|
$
|
(103
|
)
|
|
|
|
|
|
|
|
|
|
|||||||
Total fair value of open positions exposed to
commodity price risk
|
|
|
|
|
|
|
$
|
1,282
|
|
|
December 31, 2015
|
|||||||||||||
|
Contract
Volumes
|
|
Weighted Average
|
|
Fair Value of
Current
Asset (Liability)
|
|||||||||
Pay Price
|
|
Receive Price
|
|
|||||||||||
|
(Thousands
of Barrels)
|
|
|
|
|
|
(Thousands of
Dollars)
|
|||||||
Fair Value Hedges:
|
|
|
|
|
|
|
|
|||||||
Futures – long:
|
|
|
|
|
|
|
|
|||||||
(crude oil and refined products)
|
38
|
|
|
$
|
37.85
|
|
|
N/A
|
|
|
$
|
1
|
|
|
Futures – short:
|
|
|
|
|
|
|
|
|||||||
(crude oil and refined products)
|
59
|
|
|
N/A
|
|
|
$
|
39.07
|
|
|
$
|
68
|
|
|
Swaps – long:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
129
|
|
|
$
|
23.83
|
|
|
N/A
|
|
|
$
|
(18
|
)
|
|
Swaps – short:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
784
|
|
|
N/A
|
|
|
$
|
26.28
|
|
|
$
|
1,864
|
|
|
|
|
|
|
|
|
|
|
|||||||
Economic Hedges and Other Derivatives:
|
|
|
|
|
|
|
|
|||||||
Futures – long:
|
|
|
|
|
|
|
|
|||||||
(crude oil and refined products)
|
87
|
|
|
$
|
44.81
|
|
|
N/A
|
|
|
$
|
(48
|
)
|
|
Futures – short:
|
|
|
|
|
|
|
|
|||||||
(crude oil and refined products)
|
196
|
|
|
N/A
|
|
|
$
|
43.54
|
|
|
$
|
149
|
|
|
Swaps – long:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
1,532
|
|
|
$
|
28.19
|
|
|
N/A
|
|
|
$
|
(8,529
|
)
|
|
Swaps – short:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
1,435
|
|
|
N/A
|
|
|
$
|
33.01
|
|
|
$
|
14,931
|
|
|
Forward purchase contracts:
|
|
|
|
|
|
|
|
|||||||
(crude oil)
|
248
|
|
|
$
|
36.99
|
|
|
N/A
|
|
|
$
|
193
|
|
|
Forward sales contracts:
|
|
|
|
|
|
|
|
|||||||
(crude oil)
|
248
|
|
|
N/A
|
|
|
$
|
36.82
|
|
|
$
|
(235
|
)
|
|
|
|
|
|
|
|
|
|
|||||||
Total fair value of open positions exposed to
commodity price risk
|
|
|
|
|
|
|
$
|
8,376
|
|
Item 4.
|
Controls and Procedures
|
(a)
|
Evaluation of disclosure controls and procedures.
|
(b)
|
Changes in internal control over financial reporting.
|
Period
|
|
Total Number of Units Purchased
(1)
|
|
Average Price Paid per Unit
(1)
|
|
Total Number of Units Purchased as Part of Publicly Announced Plans or Programs
|
|
Maximum Number (or Approximate Dollar Value) of Units that May Yet Be Purchased Under the Plans or Programs
|
||||||
January 1 through January 31
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
February 1 through February 29
|
|
5,000
|
|
|
32.18
|
|
|
—
|
|
|
—
|
|
||
March 1 through March 31
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Total
|
|
5,000
|
|
|
$
|
32.18
|
|
|
—
|
|
|
$
|
—
|
|
Item 6.
|
Exhibits
|
By:
|
|
/s/ Bradley C. Barron
|
|
|
Bradley C. Barron
|
|
|
President and Chief Executive Officer
|
|
|
May 5, 2016
|
|
|
|
By:
|
|
/s/ Thomas R. Shoaf
|
|
|
Thomas R. Shoaf
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
May 5, 2016
|
|
|
|
By:
|
|
/s/ Jorge A. del Alamo
|
|
|
Jorge A. del Alamo
|
|
|
Senior Vice President and Controller
|
|
|
May 5, 2016
|
|
Three Months
|
|
|
||||||||||||||||||||
|
Ended
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
March 31,
|
|
Years Ended December 31,
|
||||||||||||||||||||
|
2016
|
|
2015
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
||||||||||||
Earnings:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) from continuing operations before provision for income taxes and income from equity investees
|
$
|
60,271
|
|
|
$
|
320,658
|
|
|
$
|
220,174
|
|
|
$
|
(132,786
|
)
|
|
$
|
(132,173
|
)
|
|
$
|
225,771
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed charges
|
38,346
|
|
|
150,661
|
|
|
153,236
|
|
|
149,090
|
|
|
122,286
|
|
|
109,825
|
|
||||||
Amortization of capitalized interest
|
421
|
|
|
1,573
|
|
|
1,385
|
|
|
1,216
|
|
|
1,012
|
|
|
793
|
|
||||||
Distributions from joint ventures
|
—
|
|
|
2,500
|
|
|
7,587
|
|
|
7,956
|
|
|
6,364
|
|
|
14,374
|
|
||||||
Less: Interest capitalized
|
(1,162
|
)
|
|
(5,549
|
)
|
|
(5,667
|
)
|
|
(4,501
|
)
|
|
(7,737
|
)
|
|
(5,388
|
)
|
||||||
Total earnings
|
$
|
97,876
|
|
|
$
|
469,843
|
|
|
$
|
376,715
|
|
|
$
|
20,975
|
|
|
$
|
(10,248
|
)
|
|
$
|
345,375
|
|
Fixed charges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense, net
|
$
|
34,123
|
|
|
$
|
131,868
|
|
|
$
|
132,281
|
|
|
$
|
127,119
|
|
|
$
|
90,535
|
|
|
$
|
81,539
|
|
Interest capitalized
|
1,162
|
|
|
5,549
|
|
|
5,667
|
|
|
4,501
|
|
|
7,737
|
|
|
5,388
|
|
||||||
Rental expense interest factor (a)
|
3,061
|
|
|
13,244
|
|
|
15,288
|
|
|
17,470
|
|
|
24,014
|
|
|
22,898
|
|
||||||
Total fixed charges
|
$
|
38,346
|
|
|
$
|
150,661
|
|
|
$
|
153,236
|
|
|
$
|
149,090
|
|
|
$
|
122,286
|
|
|
$
|
109,825
|
|
Ratio of earnings to fixed charges
|
2.6x
|
|
|
3.1x
|
|
|
2.5x
|
|
|
(b)
|
|
|
(c)
|
|
|
3.1x
|
|
(a)
|
The interest portion of rental expense represents one-third of rents, which is deemed representative of the interest portion of rental expense.
|
(b)
|
For the year ended December 31, 2013, earnings were insufficient to cover fixed charges by $128.1 million. The deficiency included a goodwill impairment loss of $304.5 million related to the Statia terminals reporting unit.
|
(c)
|
For the year ended December 31, 2012, earnings were insufficient to cover fixed charges by $132.5 million. The deficiency included the effect of $271.8 million of impairment losses mainly resulting from the write-down of the carrying value of our long-lived assets related to our asphalt operations, including fixed assets, goodwill, intangible assets and other long-term assets.
|
/s/ Bradley C. Barron
|
Bradley C. Barron
|
President and Chief Executive Officer
|
/s/ Thomas R. Shoaf
|
Thomas R. Shoaf
|
Executive Vice President and Chief Financial Officer
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.
|
/s/ Bradley C. Barron
|
Bradley C. Barron
|
President and Chief Executive Officer
|
May 5, 2016
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.
|
/s/ Thomas R. Shoaf
|
Thomas R. Shoaf
|
Executive Vice President and Chief Financial Officer
|
May 5, 2016
|