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 June 30, 2018
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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
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o
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Emerging growth company
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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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Item 6.
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Item 1.
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Financial Statements
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June 30,
2018 |
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December 31,
2017 |
||||
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(Unaudited)
|
|
|
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
20,344
|
|
|
$
|
24,292
|
|
Accounts receivable, net of allowance for doubtful accounts of $10,419
and $9,948 as of June 30, 2018 and December 31, 2017, respectively
|
141,872
|
|
|
176,570
|
|
||
Receivable from related party
|
279
|
|
|
205
|
|
||
Inventories
|
28,071
|
|
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26,857
|
|
||
Other current assets
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26,526
|
|
|
22,508
|
|
||
Total current assets
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217,092
|
|
|
250,432
|
|
||
Property, plant and equipment, at cost
|
6,514,589
|
|
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6,243,481
|
|
||
Accumulated depreciation and amortization
|
(2,054,908
|
)
|
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(1,942,548
|
)
|
||
Property, plant and equipment, net
|
4,459,681
|
|
|
4,300,933
|
|
||
Intangible assets, net
|
758,767
|
|
|
784,479
|
|
||
Goodwill
|
1,094,661
|
|
|
1,097,475
|
|
||
Deferred income tax asset
|
—
|
|
|
233
|
|
||
Other long-term assets, net
|
116,768
|
|
|
101,681
|
|
||
Total assets
|
$
|
6,646,969
|
|
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$
|
6,535,233
|
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Liabilities, Mezzanine Equity and Partners’ Equity
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
127,801
|
|
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$
|
145,932
|
|
Short-term debt
|
63,000
|
|
|
35,000
|
|
||
Current portion of long-term debt
|
—
|
|
|
349,990
|
|
||
Accrued interest payable
|
36,192
|
|
|
40,449
|
|
||
Accrued liabilities
|
64,719
|
|
|
61,578
|
|
||
Taxes other than income tax
|
16,220
|
|
|
14,385
|
|
||
Income tax payable
|
3,357
|
|
|
4,172
|
|
||
Total current liabilities
|
311,289
|
|
|
651,506
|
|
||
Long-term debt, less current portion
|
3,380,366
|
|
|
3,263,069
|
|
||
Deferred income tax liability
|
23,113
|
|
|
22,272
|
|
||
Other long-term liabilities
|
105,013
|
|
|
118,297
|
|
||
Total liabilities
|
3,819,781
|
|
|
4,055,144
|
|
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|
|
|
|
||||
Commitments and contingencies (Note 6)
|
|
|
|
||||
|
|
|
|
||||
Series D preferred limited partners (15,760,441 preferred units outstanding as of
June 30, 2018) (Note 11)
|
370,711
|
|
|
—
|
|
||
|
|
|
|
||||
Partners’ equity (Note 12):
|
|
|
|
||||
Preferred limited partners (9,060,000 Series A preferred units, 15,400,000 Series B preferred units and 6,900,000 Series C preferred units outstanding as of June 30, 2018 and December 31, 2017)
|
756,334
|
|
|
756,603
|
|
||
Common limited partners (93,597,181 and 93,176,683 common units outstanding
as of June 30, 2018 and December 31, 2017, respectively)
|
1,740,768
|
|
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1,770,587
|
|
||
General partner
|
25,999
|
|
|
37,826
|
|
||
Accumulated other comprehensive loss
|
(66,624
|
)
|
|
(84,927
|
)
|
||
Total partners’ equity
|
2,456,477
|
|
|
2,480,089
|
|
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Total liabilities, mezzanine equity and partners’ equity
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$
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6,646,969
|
|
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$
|
6,535,233
|
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Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
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2018
|
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2017
|
|
2018
|
|
2017
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Service revenues
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$
|
302,131
|
|
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$
|
283,700
|
|
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$
|
593,544
|
|
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$
|
550,162
|
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Product sales
|
184,073
|
|
|
151,788
|
|
|
368,541
|
|
|
372,756
|
|
||||
Total revenues
|
486,204
|
|
|
435,488
|
|
|
962,085
|
|
|
922,918
|
|
||||
Costs and expenses:
|
|
|
|
|
|
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|
||||||||
Costs associated with service revenues:
|
|
|
|
|
|
|
|
||||||||
Operating expenses (excluding depreciation and amortization expense)
|
131,672
|
|
|
116,400
|
|
|
240,556
|
|
|
217,426
|
|
||||
Depreciation and amortization expense
|
73,613
|
|
|
65,402
|
|
|
143,510
|
|
|
120,073
|
|
||||
Total costs associated with service revenues
|
205,285
|
|
|
181,802
|
|
|
384,066
|
|
|
337,499
|
|
||||
Cost of product sales
|
170,849
|
|
|
144,479
|
|
|
347,577
|
|
|
352,285
|
|
||||
General and administrative expenses (excluding depreciation and amortization expense)
|
27,981
|
|
|
33,604
|
|
|
47,755
|
|
|
58,199
|
|
||||
Other depreciation and amortization expense
|
2,251
|
|
|
2,199
|
|
|
4,369
|
|
|
4,392
|
|
||||
Total costs and expenses
|
406,366
|
|
|
362,084
|
|
|
783,767
|
|
|
752,375
|
|
||||
Operating income
|
79,838
|
|
|
73,404
|
|
|
178,318
|
|
|
170,543
|
|
||||
Interest expense, net
|
(48,936
|
)
|
|
(45,612
|
)
|
|
(96,708
|
)
|
|
(82,026
|
)
|
||||
Other income, net
|
1,412
|
|
|
88
|
|
|
81,164
|
|
|
228
|
|
||||
Income before income tax expense
|
32,314
|
|
|
27,880
|
|
|
162,774
|
|
|
88,745
|
|
||||
Income tax expense
|
2,915
|
|
|
1,630
|
|
|
7,242
|
|
|
4,555
|
|
||||
Net income
|
$
|
29,399
|
|
|
$
|
26,250
|
|
|
$
|
155,532
|
|
|
$
|
84,190
|
|
|
|
|
|
|
|
|
|
||||||||
Basic net income per common unit (Note 14)
|
$
|
0.15
|
|
|
$
|
0.05
|
|
|
$
|
1.30
|
|
|
$
|
0.51
|
|
Basic weighted-average common units outstanding
|
93,192,238
|
|
|
90,345,469
|
|
|
93,187,038
|
|
|
84,526,506
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Comprehensive income
|
$
|
26,778
|
|
|
$
|
27,381
|
|
|
$
|
173,835
|
|
|
$
|
89,084
|
|
|
Six Months Ended June 30,
|
||||||
|
2018
|
|
2017
|
||||
Cash Flows from Operating Activities:
|
|
|
|
||||
Net income
|
$
|
155,532
|
|
|
$
|
84,190
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization expense
|
147,879
|
|
|
124,465
|
|
||
Unit-based compensation expense
|
4,277
|
|
|
5,117
|
|
||
Amortization of debt related items
|
3,965
|
|
|
3,146
|
|
||
Gain from sale or disposition of assets
|
(1,218
|
)
|
|
(36
|
)
|
||
Gain from insurance recoveries
|
(78,756
|
)
|
|
—
|
|
||
Deferred income tax expense
|
1,142
|
|
|
23
|
|
||
Changes in current assets and current liabilities (Note 15)
|
42,733
|
|
|
(15,344
|
)
|
||
(Increase) decrease in other long-term assets
|
(11,224
|
)
|
|
2,698
|
|
||
(Decrease) increase in other long-term liabilities
|
(20,073
|
)
|
|
5,494
|
|
||
Other, net
|
(407
|
)
|
|
(765
|
)
|
||
Net cash provided by operating activities
|
243,850
|
|
|
208,988
|
|
||
Cash Flows from Investing Activities:
|
|
|
|
||||
Capital expenditures
|
(248,521
|
)
|
|
(108,849
|
)
|
||
Change in accounts payable related to capital expenditures
|
(19,320
|
)
|
|
6,851
|
|
||
Proceeds from sale or disposition of assets
|
2,097
|
|
|
1,966
|
|
||
Proceeds from Axeon term loan
|
—
|
|
|
110,000
|
|
||
Proceeds from insurance recoveries
|
78,419
|
|
|
—
|
|
||
Acquisitions
|
(37,502
|
)
|
|
(1,476,719
|
)
|
||
Net cash used in investing activities
|
(224,827
|
)
|
|
(1,466,751
|
)
|
||
Cash Flows from Financing Activities:
|
|
|
|
||||
Proceeds from long-term debt borrowings
|
677,272
|
|
|
1,037,161
|
|
||
Proceeds from short-term debt borrowings
|
456,000
|
|
|
565,000
|
|
||
Proceeds from note offering, net of issuance costs
|
—
|
|
|
543,313
|
|
||
Long-term debt repayments
|
(905,521
|
)
|
|
(1,122,239
|
)
|
||
Short-term debt repayments
|
(428,000
|
)
|
|
(574,000
|
)
|
||
Proceeds from issuance of Series D preferred units
|
400,000
|
|
|
—
|
|
||
Payment of issuance costs for Series D preferred units
|
(29,289
|
)
|
|
—
|
|
||
Proceeds from issuance of other preferred units, net of issuance costs
|
—
|
|
|
371,802
|
|
||
Proceeds from issuance of common units, net of issuance costs
|
10,000
|
|
|
643,858
|
|
||
Contributions from general partner
|
—
|
|
|
13,597
|
|
||
Distributions to preferred unitholders
|
(32,713
|
)
|
|
(10,696
|
)
|
||
Distributions to common unitholders and general partner
|
(172,324
|
)
|
|
(216,139
|
)
|
||
Proceeds from termination of interest rate swaps
|
8,048
|
|
|
—
|
|
||
(Decrease) increase in cash book overdrafts
|
(436
|
)
|
|
1,321
|
|
||
Other, net
|
(5,587
|
)
|
|
(2,615
|
)
|
||
Net cash (used in) provided by financing activities
|
(22,550
|
)
|
|
1,250,363
|
|
||
Effect of foreign exchange rate changes on cash
|
(421
|
)
|
|
649
|
|
||
Net decrease in cash and cash equivalents
|
(3,948
|
)
|
|
(6,751
|
)
|
||
Cash and cash equivalents as of the beginning of the period
|
24,292
|
|
|
35,942
|
|
||
Cash and cash equivalents as of the end of the period
|
$
|
20,344
|
|
|
$
|
29,191
|
|
|
Purchase Price Allocation
|
||
|
(Thousands of Dollars)
|
||
Accounts receivable
|
$
|
4,747
|
|
Other current assets
|
2,359
|
|
|
Property, plant and equipment, net
|
376,690
|
|
|
Intangible assets (a)
|
700,000
|
|
|
Goodwill (b)
|
398,024
|
|
|
Other long-term assets, net
|
2,199
|
|
|
Current liabilities
|
(22,300
|
)
|
|
Purchase price allocation, net of cash acquired
|
$
|
1,461,719
|
|
(a)
|
Intangible assets, which consist of customer contracts and relationships, are amortized on a straight-line basis over a period of
20 years
.
|
(b)
|
The goodwill acquired represents the expected benefit from entering new geographic areas and the anticipated opportunities to generate future cash flows from the assets acquired and potential future projects.
|
•
|
we completed the Navigator Acquisition on January 1, 2017;
|
•
|
we issued approximately
14.4 million
common units;
|
•
|
we received a contribution from our general partner of
$13.6 million
to maintain its
2%
interest;
|
•
|
we issued
15.4 million
Series B Preferred Units;
|
•
|
we issued
$550.0 million
of
5.625%
senior notes;
|
•
|
additional depreciation and amortization that would have been incurred assuming the fair value adjustments to property, plant and equipment and intangible assets reflected in the purchase price allocation above; and
|
•
|
we satisfied Navigator’s outstanding obligations under its revolving credit agreement.
|
|
Three Months Ended
June 30, 2017
|
|
Six Months Ended June 30, 2017
|
||||
|
(Thousands of Dollars, Except Per Unit Data)
|
||||||
Revenues
|
$
|
439,933
|
|
|
$
|
937,317
|
|
Net income
|
$
|
21,211
|
|
|
$
|
63,659
|
|
Basic net (loss) income per common unit
|
$
|
(0.03
|
)
|
|
$
|
0.16
|
|
|
June 30, 2018
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
(Thousands of Dollars)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Other long-term assets, net:
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
$
|
—
|
|
|
$
|
4,491
|
|
|
$
|
—
|
|
|
$
|
4,491
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Accrued liabilities:
|
|
|
|
|
|
|
|
||||||||
Commodity derivatives
|
$
|
(247
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(247
|
)
|
|
December 31, 2017
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
(Thousands of Dollars)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Other current assets:
|
|
|
|
|
|
|
|
||||||||
Product imbalances
|
$
|
3,890
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,890
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Accrued liabilities:
|
|
|
|
|
|
|
|
||||||||
Product imbalances
|
$
|
(1,534
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1,534
|
)
|
Commodity derivatives
|
(878
|
)
|
|
—
|
|
|
—
|
|
|
(878
|
)
|
||||
Interest rate swaps
|
—
|
|
|
(5,394
|
)
|
|
—
|
|
|
(5,394
|
)
|
||||
Other long-term liabilities:
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
—
|
|
|
(4,594
|
)
|
|
—
|
|
|
(4,594
|
)
|
||||
Total liabilities
|
$
|
(2,412
|
)
|
|
$
|
(9,988
|
)
|
|
$
|
—
|
|
|
$
|
(12,400
|
)
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
|
(Thousands of Dollars)
|
||||||
Fair value
|
$
|
3,394,956
|
|
|
$
|
3,677,622
|
|
Carrying amount
|
$
|
3,380,366
|
|
|
$
|
3,613,059
|
|
|
|
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||||||
|
Balance Sheet Location
|
|
June 30,
2018 |
|
December 31,
2017 |
|
June 30,
2018 |
|
December 31,
2017 |
||||||||
|
|
|
(Thousands of Dollars)
|
||||||||||||||
Derivatives Designated as
Hedging Instruments:
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
Other long-term assets, net
|
|
$
|
4,491
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Commodity contracts
|
Accrued liabilities
|
|
—
|
|
|
—
|
|
|
(70
|
)
|
|
(112
|
)
|
||||
Interest rate swaps
|
Accrued liabilities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,394
|
)
|
||||
Interest rate swaps
|
Other long-term liabilities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,594
|
)
|
||||
Total
|
|
|
4,491
|
|
|
—
|
|
|
(70
|
)
|
|
(10,100
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
Derivatives Not Designated
as Hedging Instruments:
|
|
|
|
|
|
|
|
|
|
||||||||
Commodity contracts
|
Accrued liabilities
|
|
1,278
|
|
|
742
|
|
|
(1,455
|
)
|
|
(1,508
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
Total Derivatives
|
|
|
$
|
5,769
|
|
|
$
|
742
|
|
|
$
|
(1,525
|
)
|
|
$
|
(11,608
|
)
|
Commodity Contracts
|
|
June 30,
2018 |
|
December 31,
2017 |
||||
|
|
(Thousands of Dollars)
|
||||||
Net amounts of assets presented in the consolidated balance sheets
|
|
$
|
—
|
|
|
$
|
—
|
|
Net amounts of liabilities presented in the consolidated balance sheets
|
|
$
|
(247
|
)
|
|
$
|
(878
|
)
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(Thousands of Dollars)
|
||||||||||||||
Derivatives Designated as Fair Value Hedging Instruments:
|
|
|
|
|
|
|
|
||||||||
(Loss) gain recognized in income on derivative
|
$
|
(1,007
|
)
|
|
$
|
364
|
|
|
$
|
(1,303
|
)
|
|
$
|
2,461
|
|
Gain (loss) recognized in income on hedged item
|
981
|
|
|
(313
|
)
|
|
1,218
|
|
|
(2,147
|
)
|
||||
(Loss) gain recognized in income for ineffective portion
|
$
|
(26
|
)
|
|
$
|
51
|
|
|
$
|
(85
|
)
|
|
$
|
314
|
|
|
|
|
|
|
|
|
|
||||||||
Derivatives Not Designated as Hedging Instruments:
|
|
|
|
|
|
|
|
||||||||
(Loss) gain recognized in income on derivative
|
$
|
(90
|
)
|
|
$
|
52
|
|
|
$
|
(231
|
)
|
|
$
|
(86
|
)
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(Thousands of Dollars)
|
||||||||||||||
Derivatives Designated as Cash Flow Hedging Instruments:
|
|
|
|
|
|
|
|
||||||||
Gain (loss) recognized in other comprehensive income on derivative (effective portion)
|
$
|
5,106
|
|
|
$
|
(7,980
|
)
|
|
$
|
22,527
|
|
|
$
|
(7,941
|
)
|
Loss reclassified from AOCI into interest expense, net (effective portion)
|
$
|
(1,162
|
)
|
|
$
|
(1,729
|
)
|
|
$
|
(2,552
|
)
|
|
$
|
(3,528
|
)
|
|
Pension Plans
|
|
Other Postretirement Benefit Plans
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(Thousands of Dollars)
|
||||||||||||||
For the three months ended June 30:
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
2,405
|
|
|
$
|
2,239
|
|
|
$
|
126
|
|
|
$
|
113
|
|
Interest cost
|
1,206
|
|
|
1,127
|
|
|
107
|
|
|
108
|
|
||||
Expected return on assets
|
(1,854
|
)
|
|
(1,602
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of prior service credit
|
(514
|
)
|
|
(516
|
)
|
|
(286
|
)
|
|
(286
|
)
|
||||
Amortization of net loss
|
543
|
|
|
371
|
|
|
53
|
|
|
48
|
|
||||
Net periodic benefit cost (income)
|
$
|
1,786
|
|
|
$
|
1,619
|
|
|
$
|
—
|
|
|
$
|
(17
|
)
|
|
|
|
|
|
|
|
|
||||||||
For the six months ended June 30:
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
4,811
|
|
|
$
|
4,478
|
|
|
$
|
252
|
|
|
$
|
226
|
|
Interest cost
|
2,412
|
|
|
2,254
|
|
|
215
|
|
|
216
|
|
||||
Expected return on assets
|
(3,709
|
)
|
|
(3,205
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of prior service credit
|
(1,028
|
)
|
|
(1,031
|
)
|
|
(573
|
)
|
|
(572
|
)
|
||||
Amortization of net loss
|
1,087
|
|
|
742
|
|
|
107
|
|
|
96
|
|
||||
Net periodic benefit cost (income)
|
$
|
3,573
|
|
|
$
|
3,238
|
|
|
$
|
1
|
|
|
$
|
(34
|
)
|
Balance as of January 1, 2018
|
$
|
2,480,089
|
|
Net income
|
155,320
|
|
|
Unit-based compensation
|
3,051
|
|
|
Other comprehensive income
|
18,303
|
|
|
Distributions to partners
|
(204,347
|
)
|
|
Issuance of common units, including contribution from general partner
|
10,204
|
|
|
Other
|
(6,143
|
)
|
|
Balance as of June 30, 2018
|
$
|
2,456,477
|
|
|
|
Percentage of Distribution
|
||
Quarterly Distribution Amount per Common Unit
|
|
Common
Unitholders
|
|
General Partner
Including Incentive Distributions
|
Up to $0.60
|
|
98%
|
|
2%
|
Above $0.60 up to $0.66
|
|
90%
|
|
10%
|
Above $0.66
|
|
75%
|
|
25%
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(Thousands of Dollars, Except Per Unit Data)
|
||||||||||||||
General partner interest
|
$
|
—
|
|
|
$
|
2,302
|
|
|
$
|
1,141
|
|
|
$
|
4,645
|
|
General partner incentive distribution
|
—
|
|
|
10,912
|
|
|
—
|
|
|
23,824
|
|
||||
Total general partner distribution
|
—
|
|
|
13,214
|
|
|
1,141
|
|
|
28,469
|
|
||||
Common limited partners’ distribution
|
64,205
|
|
|
101,869
|
|
|
120,121
|
|
|
203,782
|
|
||||
Total cash distributions
|
$
|
64,205
|
|
|
$
|
115,083
|
|
|
$
|
121,262
|
|
|
$
|
232,251
|
|
|
|
|
|
|
|
|
|
||||||||
Cash distributions per unit applicable to common limited partners
|
$
|
0.60
|
|
|
$
|
1.095
|
|
|
$
|
1.200
|
|
|
$
|
2.190
|
|
Quarter Ended
|
|
Cash
Distributions
Per Unit
|
|
Total Cash
Distributions
|
|
Record Date
|
|
Payment Date
|
||||
|
|
|
|
(Thousands of Dollars)
|
|
|
|
|
||||
June 30, 2018
|
|
$
|
0.600
|
|
|
$
|
64,205
|
|
|
August 7, 2018
|
|
August 13, 2018
|
March 31, 2018
|
|
$
|
0.600
|
|
|
$
|
57,057
|
|
|
May 8, 2018
|
|
May 14, 2018
|
December 31, 2017
|
|
$
|
1.095
|
|
|
$
|
115,267
|
|
|
February 8, 2018
|
|
February 13, 2018
|
Period
|
|
Cash
Distributions
Per Unit
|
|
Total Cash
Distributions
|
|
Record Date
|
|
Payment Date
|
||||
|
|
|
|
(Thousands of Dollars)
|
|
|
|
|
||||
Series A Preferred Units:
|
|
|
|
|
|
|
|
|
||||
June 15, 2018 - September 14, 2018
|
|
$
|
0.53125
|
|
|
$
|
4,813
|
|
|
September 4, 2018
|
|
September 17, 2018
|
March 15, 2018 - June 14, 2018
|
|
$
|
0.53125
|
|
|
$
|
4,813
|
|
|
June 1, 2018
|
|
June 15, 2018
|
December 15, 2017 - March 14, 2018
|
|
$
|
0.53125
|
|
|
$
|
4,813
|
|
|
March 1, 2018
|
|
March 15, 2018
|
|
|
|
|
|
|
|
|
|
||||
Series B Preferred Units:
|
|
|
|
|
|
|
|
|
||||
June 15, 2018 to September 14, 2018
|
|
$
|
0.47657
|
|
|
$
|
7,339
|
|
|
September 4, 2018
|
|
September 17, 2018
|
March 15, 2018 to June 14, 2018
|
|
$
|
0.47657
|
|
|
$
|
7,339
|
|
|
June 1, 2018
|
|
June 15, 2018
|
December 15, 2017 to March 14, 2018
|
|
$
|
0.47657
|
|
|
$
|
7,339
|
|
|
March 1, 2018
|
|
March 15, 2018
|
|
|
|
|
|
|
|
|
|
||||
Series C Preferred Units:
|
|
|
|
|
|
|
|
|
||||
June 15, 2018 to September 14, 2018
|
|
$
|
0.56250
|
|
|
$
|
3,881
|
|
|
September 4, 2018
|
|
September 17, 2018
|
March 15, 2018 to June 14, 2018
|
|
$
|
0.56250
|
|
|
$
|
3,881
|
|
|
June 1, 2018
|
|
June 15, 2018
|
November 30, 2017 - March 14, 2018
|
|
$
|
0.65625
|
|
|
$
|
4,528
|
|
|
March 1, 2018
|
|
March 15, 2018
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(Thousands of Dollars, Except Percentage Data)
|
||||||||||||||
Net income
|
$
|
29,399
|
|
|
$
|
26,250
|
|
|
$
|
155,532
|
|
|
$
|
84,190
|
|
Less preferred limited partner interest
|
16,245
|
|
|
9,950
|
|
|
32,235
|
|
|
14,763
|
|
||||
Less general partner incentive distribution
|
—
|
|
|
10,912
|
|
|
—
|
|
|
23,824
|
|
||||
Net income after preferred limited partner interest and general partner incentive distribution
|
13,154
|
|
|
5,388
|
|
|
123,297
|
|
|
45,603
|
|
||||
General partner interest allocation
|
2
|
%
|
|
2
|
%
|
|
2
|
%
|
|
2
|
%
|
||||
General partner interest allocation of net income
|
263
|
|
|
108
|
|
|
2,466
|
|
|
912
|
|
||||
General partner incentive distribution
|
—
|
|
|
10,912
|
|
|
—
|
|
|
23,824
|
|
||||
Net income applicable to general partner
|
$
|
263
|
|
|
$
|
11,020
|
|
|
$
|
2,466
|
|
|
$
|
24,736
|
|
|
Foreign
Currency
Translation
|
|
Cash Flow
Hedges
|
|
Pension and
Other
Postretirement
Benefits
|
|
Total
|
||||||||
|
(Thousands of Dollars)
|
||||||||||||||
Balance as of January 1, 2018
|
$
|
(51,603
|
)
|
|
$
|
(24,304
|
)
|
|
$
|
(9,020
|
)
|
|
$
|
(84,927
|
)
|
Other comprehensive (loss) income:
|
|
|
|
|
|
|
|
||||||||
Other comprehensive (loss) income before reclassification adjustments
|
(6,379
|
)
|
|
22,527
|
|
|
—
|
|
|
16,148
|
|
||||
Net gain on pension costs reclassified into other income, net
|
—
|
|
|
—
|
|
|
(407
|
)
|
|
(407
|
)
|
||||
Net loss on cash flow hedges reclassified into interest
expense, net
|
—
|
|
|
2,552
|
|
|
—
|
|
|
2,552
|
|
||||
Other
|
60
|
|
|
—
|
|
|
(50
|
)
|
|
10
|
|
||||
Other comprehensive (loss) income
|
(6,319
|
)
|
|
25,079
|
|
|
(457
|
)
|
|
18,303
|
|
||||
Balance as of June 30, 2018
|
$
|
(57,922
|
)
|
|
$
|
775
|
|
|
$
|
(9,477
|
)
|
|
$
|
(66,624
|
)
|
|
As Reported
|
|
Without Adoption of ASC Topic 606
|
|
Effect of Change
Higher/(Lower)
|
||||||
|
(Thousands of Dollars, Except Per Unit Data)
|
||||||||||
For the three months ended June 30, 2018:
|
|
|
|
|
|
||||||
Revenues
|
$
|
486,204
|
|
|
$
|
484,646
|
|
|
$
|
1,558
|
|
Operating income
|
$
|
79,838
|
|
|
$
|
78,280
|
|
|
$
|
1,558
|
|
Net income
|
$
|
29,399
|
|
|
$
|
27,841
|
|
|
$
|
1,558
|
|
Basic net income per common unit
|
$
|
0.15
|
|
|
$
|
0.13
|
|
|
$
|
0.02
|
|
|
|
|
|
|
|
||||||
For the six months ended June 30, 2018:
|
|
|
|
|
|
||||||
Revenues
|
$
|
962,085
|
|
|
$
|
966,432
|
|
|
$
|
(4,347
|
)
|
Operating income
|
$
|
178,318
|
|
|
$
|
182,665
|
|
|
$
|
(4,347
|
)
|
Net income
|
$
|
155,532
|
|
|
$
|
159,879
|
|
|
$
|
(4,347
|
)
|
Basic net income per common unit
|
$
|
1.30
|
|
|
$
|
1.34
|
|
|
$
|
(0.04
|
)
|
|
Contract Assets
|
|
Contract Liabilities
|
||||
|
(Thousands of Dollars)
|
||||||
Balance as of January 1, 2018
|
$
|
2,127
|
|
|
$
|
(60,464
|
)
|
|
|
|
|
||||
Additions
|
879
|
|
|
(20,820
|
)
|
||
Transfer to accounts receivable
|
(2,397
|
)
|
|
—
|
|
||
Transfer to revenues
|
—
|
|
|
28,466
|
|
||
Total activity
|
(1,518
|
)
|
|
7,646
|
|
||
|
|
|
|
||||
Balance as of June 30, 2018
|
609
|
|
|
(52,818
|
)
|
||
Less current portion
|
327
|
|
|
(18,149
|
)
|
||
Noncurrent portion
|
$
|
282
|
|
|
$
|
(34,669
|
)
|
2018 (remaining)
|
|
$
|
260,929
|
|
2019
|
|
377,617
|
|
|
2020
|
|
229,327
|
|
|
2021
|
|
168,290
|
|
|
2022
|
|
130,220
|
|
|
Thereafter
|
|
412,921
|
|
|
Total
|
|
$
|
1,579,304
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(Thousands of Dollars)
|
||||||||||||||
Pipeline segment:
|
|
|
|
|
|
|
|
||||||||
Crude oil pipelines (excluding lessor revenues)
|
$
|
60,507
|
|
|
$
|
47,039
|
|
|
$
|
113,944
|
|
|
$
|
83,786
|
|
Refined products and ammonia pipelines
|
89,769
|
|
|
79,701
|
|
|
173,068
|
|
|
164,194
|
|
||||
Total pipeline segment revenues from contracts with customers
|
150,276
|
|
|
126,740
|
|
|
287,012
|
|
|
247,980
|
|
||||
Lessor revenues
|
—
|
|
|
—
|
|
|
54
|
|
|
—
|
|
||||
Total pipeline segment revenues
|
150,276
|
|
|
126,740
|
|
|
287,066
|
|
|
247,980
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Storage segment:
|
|
|
|
|
|
|
|
||||||||
Throughput terminals
|
20,141
|
|
|
22,122
|
|
|
40,157
|
|
|
42,812
|
|
||||
Storage terminals (excluding lessor revenues)
|
127,347
|
|
|
126,655
|
|
|
252,697
|
|
|
243,615
|
|
||||
Total storage segment revenues from contracts with customers
|
147,488
|
|
|
148,777
|
|
|
292,854
|
|
|
286,427
|
|
||||
Lessor revenues
|
9,962
|
|
|
9,782
|
|
|
19,924
|
|
|
19,563
|
|
||||
Total storage segment revenues
|
157,450
|
|
|
158,559
|
|
|
312,778
|
|
|
305,990
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Fuels marketing segment revenues from contracts with customers
|
180,483
|
|
|
153,918
|
|
|
366,321
|
|
|
376,620
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Consolidation and intersegment eliminations
|
(2,005
|
)
|
|
(3,729
|
)
|
|
(4,080
|
)
|
|
(7,672
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Total revenues
|
$
|
486,204
|
|
|
$
|
435,488
|
|
|
$
|
962,085
|
|
|
$
|
922,918
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(Thousands of Dollars, Except Unit and Per Unit Data)
|
||||||||||||||
Net income
|
$
|
29,399
|
|
|
$
|
26,250
|
|
|
$
|
155,532
|
|
|
$
|
84,190
|
|
Less: Distributions to preferred limited partners
|
16,245
|
|
|
9,950
|
|
|
32,235
|
|
|
14,763
|
|
||||
Less: Distributions to general partner (including incentive distribution rights)
|
—
|
|
|
13,214
|
|
|
1,141
|
|
|
28,469
|
|
||||
Less: Distributions to common limited partners
|
64,205
|
|
|
101,869
|
|
|
120,121
|
|
|
203,782
|
|
||||
Less: Distribution equivalent rights to restricted units
|
480
|
|
|
712
|
|
|
925
|
|
|
1,427
|
|
||||
Distributions (in excess of) less than earnings
|
$
|
(51,531
|
)
|
|
$
|
(99,495
|
)
|
|
$
|
1,110
|
|
|
$
|
(164,251
|
)
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to common units:
|
|
|
|
|
|
|
|
||||||||
Distributions to common limited partners
|
$
|
64,205
|
|
|
$
|
101,869
|
|
|
$
|
120,121
|
|
|
$
|
203,782
|
|
Allocation of distributions (in excess of) less than earnings
|
(50,500
|
)
|
|
(97,505
|
)
|
|
1,079
|
|
|
(160,966
|
)
|
||||
Total
|
$
|
13,705
|
|
|
$
|
4,364
|
|
|
$
|
121,200
|
|
|
$
|
42,816
|
|
|
|
|
|
|
|
|
|
||||||||
Basic weighted-average common units outstanding
|
93,192,238
|
|
|
90,345,469
|
|
|
93,187,038
|
|
|
84,526,506
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Basic net income per common unit
|
$
|
0.15
|
|
|
$
|
0.05
|
|
|
$
|
1.30
|
|
|
$
|
0.51
|
|
|
Six Months Ended June 30,
|
||||||
|
2018
|
|
2017
|
||||
|
(Thousands of Dollars)
|
||||||
Decrease (increase) in current assets:
|
|
|
|
||||
Accounts receivable
|
$
|
34,518
|
|
|
$
|
48,875
|
|
Receivable from related party
|
130
|
|
|
231
|
|
||
Inventories
|
(1,233
|
)
|
|
13,005
|
|
||
Other current assets
|
(2,494
|
)
|
|
(2,388
|
)
|
||
Increase (decrease) in current liabilities:
|
|
|
|
||||
Accounts payable
|
5,149
|
|
|
(57,822
|
)
|
||
Accrued interest payable
|
(4,325
|
)
|
|
6,234
|
|
||
Accrued liabilities
|
10,476
|
|
|
(14,703
|
)
|
||
Taxes other than income tax
|
1,329
|
|
|
(3,094
|
)
|
||
Income tax payable
|
(817
|
)
|
|
(5,682
|
)
|
||
Changes in current assets and current liabilities
|
$
|
42,733
|
|
|
$
|
(15,344
|
)
|
•
|
current assets and current liabilities acquired during the period;
|
•
|
the change in the amount accrued for capital expenditures;
|
•
|
the effect of foreign currency translation; and
|
•
|
changes in the fair values of our interest rate swap agreements.
|
|
Six Months Ended June 30,
|
||||||
|
2018
|
|
2017
|
||||
|
(Thousands of Dollars)
|
||||||
Cash paid for interest, net of amount capitalized
|
$
|
96,761
|
|
|
$
|
70,119
|
|
Cash paid for income taxes, net of tax refunds received
|
$
|
7,973
|
|
|
$
|
9,556
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(Thousands of Dollars)
|
||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Pipeline
|
$
|
150,276
|
|
|
$
|
126,740
|
|
|
$
|
287,066
|
|
|
$
|
247,980
|
|
Storage:
|
|
|
|
|
|
|
|
||||||||
Third parties
|
155,445
|
|
|
154,830
|
|
|
308,698
|
|
|
298,318
|
|
||||
Intersegment
|
2,005
|
|
|
3,729
|
|
|
4,080
|
|
|
7,672
|
|
||||
Total storage
|
157,450
|
|
|
158,559
|
|
|
312,778
|
|
|
305,990
|
|
||||
Fuels marketing
|
180,483
|
|
|
153,918
|
|
|
366,321
|
|
|
376,620
|
|
||||
Consolidation and intersegment eliminations
|
(2,005
|
)
|
|
(3,729
|
)
|
|
(4,080
|
)
|
|
(7,672
|
)
|
||||
Total revenues
|
$
|
486,204
|
|
|
$
|
435,488
|
|
|
$
|
962,085
|
|
|
$
|
922,918
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income:
|
|
|
|
|
|
|
|
||||||||
Pipeline
|
$
|
62,979
|
|
|
$
|
52,868
|
|
|
$
|
120,773
|
|
|
$
|
117,896
|
|
Storage
|
44,184
|
|
|
56,049
|
|
|
100,445
|
|
|
109,808
|
|
||||
Fuels marketing
|
2,904
|
|
|
289
|
|
|
9,224
|
|
|
5,429
|
|
||||
Consolidation and intersegment eliminations
|
3
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
Total segment operating income
|
110,070
|
|
|
109,207
|
|
|
230,442
|
|
|
233,134
|
|
||||
General and administrative expenses
|
27,981
|
|
|
33,604
|
|
|
47,755
|
|
|
58,199
|
|
||||
Other depreciation and amortization expense
|
2,251
|
|
|
2,199
|
|
|
4,369
|
|
|
4,392
|
|
||||
Total operating income
|
$
|
79,838
|
|
|
$
|
73,404
|
|
|
$
|
178,318
|
|
|
$
|
170,543
|
|
|
June 30,
2018 |
|
December 31,
2017 |
||||
|
(Thousands of Dollars)
|
||||||
Pipeline
|
$
|
3,581,710
|
|
|
$
|
3,492,417
|
|
Storage
|
2,754,290
|
|
|
2,735,563
|
|
||
Fuels marketing
|
118,119
|
|
|
118,746
|
|
||
Total segment assets
|
6,454,119
|
|
|
6,346,726
|
|
||
Other partnership assets
|
192,850
|
|
|
188,507
|
|
||
Total consolidated assets
|
$
|
6,646,969
|
|
|
$
|
6,535,233
|
|
|
NuStar
Energy
|
|
NuStar
Logistics
|
|
NuPOP
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
896
|
|
|
$
|
1,777
|
|
|
$
|
—
|
|
|
$
|
17,671
|
|
|
$
|
—
|
|
|
$
|
20,344
|
|
Receivables, net
|
204
|
|
|
61
|
|
|
—
|
|
|
141,886
|
|
|
—
|
|
|
142,151
|
|
||||||
Inventories
|
—
|
|
|
1,913
|
|
|
8,408
|
|
|
17,750
|
|
|
—
|
|
|
28,071
|
|
||||||
Other current assets
|
78
|
|
|
16,119
|
|
|
1,838
|
|
|
8,491
|
|
|
—
|
|
|
26,526
|
|
||||||
Intercompany receivable
|
56,954
|
|
|
2,825,858
|
|
|
—
|
|
|
—
|
|
|
(2,882,812
|
)
|
|
—
|
|
||||||
Total current assets
|
58,132
|
|
|
2,845,728
|
|
|
10,246
|
|
|
185,798
|
|
|
(2,882,812
|
)
|
|
217,092
|
|
||||||
Property, plant and equipment, net
|
—
|
|
|
1,857,862
|
|
|
622,399
|
|
|
1,979,420
|
|
|
—
|
|
|
4,459,681
|
|
||||||
Intangible assets, net
|
—
|
|
|
53,819
|
|
|
—
|
|
|
704,948
|
|
|
—
|
|
|
758,767
|
|
||||||
Goodwill
|
—
|
|
|
149,453
|
|
|
170,652
|
|
|
774,556
|
|
|
—
|
|
|
1,094,661
|
|
||||||
Investment in wholly owned
subsidiaries
|
2,837,072
|
|
|
20,557
|
|
|
1,436,981
|
|
|
861,102
|
|
|
(5,155,712
|
)
|
|
—
|
|
||||||
Other long-term assets, net
|
3,391
|
|
|
73,591
|
|
|
26,944
|
|
|
12,842
|
|
|
—
|
|
|
116,768
|
|
||||||
Total assets
|
$
|
2,898,595
|
|
|
$
|
5,001,010
|
|
|
$
|
2,267,222
|
|
|
$
|
4,518,666
|
|
|
$
|
(8,038,524
|
)
|
|
$
|
6,646,969
|
|
Liabilities, Mezzanine Equity and Partners’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accounts payable
|
$
|
4,169
|
|
|
$
|
25,949
|
|
|
$
|
6,810
|
|
|
$
|
90,873
|
|
|
$
|
—
|
|
|
$
|
127,801
|
|
Short-term debt
|
—
|
|
|
63,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
63,000
|
|
||||||
Accrued interest payable
|
—
|
|
|
36,144
|
|
|
—
|
|
|
48
|
|
|
—
|
|
|
36,192
|
|
||||||
Accrued liabilities
|
608
|
|
|
21,666
|
|
|
8,016
|
|
|
34,429
|
|
|
—
|
|
|
64,719
|
|
||||||
Taxes other than income tax
|
6
|
|
|
5,368
|
|
|
4,828
|
|
|
6,018
|
|
|
—
|
|
|
16,220
|
|
||||||
Income tax payable
|
—
|
|
|
231
|
|
|
—
|
|
|
3,126
|
|
|
—
|
|
|
3,357
|
|
||||||
Intercompany payable
|
—
|
|
|
—
|
|
|
1,372,863
|
|
|
1,509,949
|
|
|
(2,882,812
|
)
|
|
—
|
|
||||||
Total current liabilities
|
4,783
|
|
|
152,358
|
|
|
1,392,517
|
|
|
1,644,443
|
|
|
(2,882,812
|
)
|
|
311,289
|
|
||||||
Long-term debt, less current portion
|
—
|
|
|
3,324,389
|
|
|
—
|
|
|
55,977
|
|
|
—
|
|
|
3,380,366
|
|
||||||
Deferred income tax liability
|
—
|
|
|
1,262
|
|
|
12
|
|
|
21,839
|
|
|
—
|
|
|
23,113
|
|
||||||
Other long-term liabilities
|
—
|
|
|
44,622
|
|
|
13,793
|
|
|
46,598
|
|
|
—
|
|
|
105,013
|
|
||||||
Series D preferred units
|
370,711
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
370,711
|
|
||||||
Total partners’ equity
|
2,523,101
|
|
|
1,478,379
|
|
|
860,900
|
|
|
2,749,809
|
|
|
(5,155,712
|
)
|
|
2,456,477
|
|
||||||
Total liabilities, mezzanine equity and partners’ equity
|
$
|
2,898,595
|
|
|
$
|
5,001,010
|
|
|
$
|
2,267,222
|
|
|
$
|
4,518,666
|
|
|
$
|
(8,038,524
|
)
|
|
$
|
6,646,969
|
|
|
NuStar
Energy
|
|
NuStar
Logistics
|
|
NuPOP
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
885
|
|
|
$
|
29
|
|
|
$
|
—
|
|
|
$
|
23,378
|
|
|
$
|
—
|
|
|
$
|
24,292
|
|
Receivables, net
|
—
|
|
|
280
|
|
|
—
|
|
|
176,495
|
|
|
—
|
|
|
176,775
|
|
||||||
Inventories
|
—
|
|
|
1,686
|
|
|
8,611
|
|
|
16,560
|
|
|
—
|
|
|
26,857
|
|
||||||
Other current assets
|
61
|
|
|
11,412
|
|
|
4,191
|
|
|
6,844
|
|
|
—
|
|
|
22,508
|
|
||||||
Intercompany receivable
|
—
|
|
|
3,112,164
|
|
|
—
|
|
|
—
|
|
|
(3,112,164
|
)
|
|
—
|
|
||||||
Total current assets
|
946
|
|
|
3,125,571
|
|
|
12,802
|
|
|
223,277
|
|
|
(3,112,164
|
)
|
|
250,432
|
|
||||||
Property, plant and equipment, net
|
—
|
|
|
1,893,720
|
|
|
591,070
|
|
|
1,816,143
|
|
|
—
|
|
|
4,300,933
|
|
||||||
Intangible assets, net
|
—
|
|
|
58,530
|
|
|
—
|
|
|
725,949
|
|
|
—
|
|
|
784,479
|
|
||||||
Goodwill
|
—
|
|
|
149,453
|
|
|
170,652
|
|
|
777,370
|
|
|
—
|
|
|
1,097,475
|
|
||||||
Investment in wholly owned
subsidiaries
|
2,891,371
|
|
|
24,162
|
|
|
1,301,717
|
|
|
790,882
|
|
|
(5,008,132
|
)
|
|
—
|
|
||||||
Deferred income tax asset
|
—
|
|
|
—
|
|
|
—
|
|
|
233
|
|
|
—
|
|
|
233
|
|
||||||
Other long-term assets, net
|
303
|
|
|
65,684
|
|
|
27,493
|
|
|
8,201
|
|
|
—
|
|
|
101,681
|
|
||||||
Total assets
|
$
|
2,892,620
|
|
|
$
|
5,317,120
|
|
|
$
|
2,103,734
|
|
|
$
|
4,342,055
|
|
|
$
|
(8,120,296
|
)
|
|
$
|
6,535,233
|
|
Liabilities and Partners’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accounts payable
|
$
|
4,078
|
|
|
$
|
27,642
|
|
|
$
|
13,160
|
|
|
$
|
101,052
|
|
|
$
|
—
|
|
|
$
|
145,932
|
|
Short-term debt
|
—
|
|
|
35,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
35,000
|
|
||||||
Current portion of long-term debt
|
—
|
|
|
349,990
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
349,990
|
|
||||||
Accrued interest payable
|
—
|
|
|
40,402
|
|
|
—
|
|
|
47
|
|
|
—
|
|
|
40,449
|
|
||||||
Accrued liabilities
|
1,105
|
|
|
17,628
|
|
|
9,450
|
|
|
33,395
|
|
|
—
|
|
|
61,578
|
|
||||||
Taxes other than income tax
|
125
|
|
|
7,110
|
|
|
3,794
|
|
|
3,356
|
|
|
—
|
|
|
14,385
|
|
||||||
Income tax payable
|
—
|
|
|
732
|
|
|
4
|
|
|
3,436
|
|
|
—
|
|
|
4,172
|
|
||||||
Intercompany payable
|
322,296
|
|
|
—
|
|
|
1,277,691
|
|
|
1,512,177
|
|
|
(3,112,164
|
)
|
|
—
|
|
||||||
Total current liabilities
|
327,604
|
|
|
478,504
|
|
|
1,304,099
|
|
|
1,653,463
|
|
|
(3,112,164
|
)
|
|
651,506
|
|
||||||
Long-term debt, less current portion
|
—
|
|
|
3,201,220
|
|
|
—
|
|
|
61,849
|
|
|
—
|
|
|
3,263,069
|
|
||||||
Deferred income tax liability
|
—
|
|
|
1,262
|
|
|
12
|
|
|
20,998
|
|
|
—
|
|
|
22,272
|
|
||||||
Other long-term liabilities
|
—
|
|
|
58,806
|
|
|
8,861
|
|
|
50,630
|
|
|
—
|
|
|
118,297
|
|
||||||
Total partners’ equity
|
2,565,016
|
|
|
1,577,328
|
|
|
790,762
|
|
|
2,555,115
|
|
|
(5,008,132
|
)
|
|
2,480,089
|
|
||||||
Total liabilities and
partners’ equity
|
$
|
2,892,620
|
|
|
$
|
5,317,120
|
|
|
$
|
2,103,734
|
|
|
$
|
4,342,055
|
|
|
$
|
(8,120,296
|
)
|
|
$
|
6,535,233
|
|
|
NuStar
Energy
|
|
NuStar
Logistics
|
|
NuPOP
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues
|
$
|
—
|
|
|
$
|
117,862
|
|
|
$
|
66,505
|
|
|
$
|
301,984
|
|
|
$
|
(147
|
)
|
|
$
|
486,204
|
|
Costs and expenses
|
538
|
|
|
86,588
|
|
|
42,324
|
|
|
277,063
|
|
|
(147
|
)
|
|
406,366
|
|
||||||
Operating (loss) income
|
(538
|
)
|
|
31,274
|
|
|
24,181
|
|
|
24,921
|
|
|
—
|
|
|
79,838
|
|
||||||
Equity in earnings of subsidiaries
|
29,900
|
|
|
1,692
|
|
|
23,145
|
|
|
45,673
|
|
|
(100,410
|
)
|
|
—
|
|
||||||
Interest income (expense), net
|
37
|
|
|
(50,357
|
)
|
|
(1,724
|
)
|
|
3,108
|
|
|
—
|
|
|
(48,936
|
)
|
||||||
Other income (expense), net
|
—
|
|
|
1,848
|
|
|
73
|
|
|
(509
|
)
|
|
—
|
|
|
1,412
|
|
||||||
Income (loss) before income tax
expense
|
29,399
|
|
|
(15,543
|
)
|
|
45,675
|
|
|
73,193
|
|
|
(100,410
|
)
|
|
32,314
|
|
||||||
Income tax expense
|
—
|
|
|
61
|
|
|
—
|
|
|
2,854
|
|
|
—
|
|
|
2,915
|
|
||||||
Net income (loss)
|
$
|
29,399
|
|
|
$
|
(15,604
|
)
|
|
$
|
45,675
|
|
|
$
|
70,339
|
|
|
$
|
(100,410
|
)
|
|
$
|
29,399
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income (loss)
|
$
|
29,399
|
|
|
$
|
(9,336
|
)
|
|
$
|
45,675
|
|
|
$
|
61,450
|
|
|
$
|
(100,410
|
)
|
|
$
|
26,778
|
|
|
NuStar
Energy
|
|
NuStar
Logistics
|
|
NuPOP
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues
|
$
|
—
|
|
|
$
|
128,895
|
|
|
$
|
50,577
|
|
|
$
|
256,363
|
|
|
$
|
(347
|
)
|
|
$
|
435,488
|
|
Costs and expenses
|
486
|
|
|
83,096
|
|
|
37,781
|
|
|
241,068
|
|
|
(347
|
)
|
|
362,084
|
|
||||||
Operating (loss) income
|
(486
|
)
|
|
45,799
|
|
|
12,796
|
|
|
15,295
|
|
|
—
|
|
|
73,404
|
|
||||||
Equity in earnings (loss) of subsidiaries
|
26,732
|
|
|
(7,177
|
)
|
|
22,746
|
|
|
34,141
|
|
|
(76,442
|
)
|
|
—
|
|
||||||
Interest income (expense), net
|
4
|
|
|
(46,390
|
)
|
|
(1,401
|
)
|
|
2,175
|
|
|
—
|
|
|
(45,612
|
)
|
||||||
Other income, net
|
—
|
|
|
62
|
|
|
3
|
|
|
23
|
|
|
—
|
|
|
88
|
|
||||||
Income (loss) before income tax
(benefit) expense
|
26,250
|
|
|
(7,706
|
)
|
|
34,144
|
|
|
51,634
|
|
|
(76,442
|
)
|
|
27,880
|
|
||||||
Income tax (benefit) expense
|
—
|
|
|
(365
|
)
|
|
1
|
|
|
1,994
|
|
|
—
|
|
|
1,630
|
|
||||||
Net income (loss)
|
$
|
26,250
|
|
|
$
|
(7,341
|
)
|
|
$
|
34,143
|
|
|
$
|
49,640
|
|
|
$
|
(76,442
|
)
|
|
$
|
26,250
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income (loss)
|
$
|
26,250
|
|
|
$
|
(13,592
|
)
|
|
$
|
34,143
|
|
|
$
|
57,022
|
|
|
$
|
(76,442
|
)
|
|
$
|
27,381
|
|
|
NuStar
Energy
|
|
NuStar
Logistics
|
|
NuPOP
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues
|
$
|
—
|
|
|
$
|
237,556
|
|
|
$
|
122,779
|
|
|
$
|
602,099
|
|
|
$
|
(349
|
)
|
|
$
|
962,085
|
|
Costs and expenses
|
1,150
|
|
|
159,004
|
|
|
77,505
|
|
|
546,457
|
|
|
(349
|
)
|
|
783,767
|
|
||||||
Operating (loss) income
|
(1,150
|
)
|
|
78,552
|
|
|
45,274
|
|
|
55,642
|
|
|
—
|
|
|
178,318
|
|
||||||
Equity in earnings (loss) of
subsidiaries
|
156,613
|
|
|
(557
|
)
|
|
135,148
|
|
|
177,312
|
|
|
(468,516
|
)
|
|
—
|
|
||||||
Interest income (expense), net
|
69
|
|
|
(100,383
|
)
|
|
(3,295
|
)
|
|
6,901
|
|
|
—
|
|
|
(96,708
|
)
|
||||||
Other income, net
|
—
|
|
|
2,324
|
|
|
188
|
|
|
78,652
|
|
|
—
|
|
|
81,164
|
|
||||||
Income (loss) before income tax expense
|
155,532
|
|
|
(20,064
|
)
|
|
177,315
|
|
|
318,507
|
|
|
(468,516
|
)
|
|
162,774
|
|
||||||
Income tax expense
|
—
|
|
|
231
|
|
|
1
|
|
|
7,010
|
|
|
—
|
|
|
7,242
|
|
||||||
Net income (loss)
|
$
|
155,532
|
|
|
$
|
(20,295
|
)
|
|
$
|
177,314
|
|
|
$
|
311,497
|
|
|
$
|
(468,516
|
)
|
|
$
|
155,532
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income
|
$
|
155,532
|
|
|
$
|
4,784
|
|
|
$
|
177,314
|
|
|
$
|
304,721
|
|
|
$
|
(468,516
|
)
|
|
$
|
173,835
|
|
|
NuStar
Energy
|
|
NuStar
Logistics
|
|
NuPOP
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues
|
$
|
—
|
|
|
$
|
252,524
|
|
|
$
|
102,818
|
|
|
$
|
568,210
|
|
|
$
|
(634
|
)
|
|
$
|
922,918
|
|
Costs and expenses
|
995
|
|
|
159,418
|
|
|
67,587
|
|
|
525,009
|
|
|
(634
|
)
|
|
752,375
|
|
||||||
Operating (loss) income
|
(995
|
)
|
|
93,106
|
|
|
35,231
|
|
|
43,201
|
|
|
—
|
|
|
170,543
|
|
||||||
Equity in earnings (loss) of
subsidiaries
|
85,177
|
|
|
(6,067
|
)
|
|
48,961
|
|
|
81,494
|
|
|
(209,565
|
)
|
|
—
|
|
||||||
Interest income (expense), net
|
8
|
|
|
(83,304
|
)
|
|
(2,705
|
)
|
|
3,975
|
|
|
—
|
|
|
(82,026
|
)
|
||||||
Other income, net
|
—
|
|
|
83
|
|
|
9
|
|
|
136
|
|
|
—
|
|
|
228
|
|
||||||
Income before income tax (benefit) expense
|
84,190
|
|
|
3,818
|
|
|
81,496
|
|
|
128,806
|
|
|
(209,565
|
)
|
|
88,745
|
|
||||||
Income tax (benefit) expense
|
—
|
|
|
(34
|
)
|
|
2
|
|
|
4,587
|
|
|
—
|
|
|
4,555
|
|
||||||
Net income
|
$
|
84,190
|
|
|
$
|
3,852
|
|
|
$
|
81,494
|
|
|
$
|
124,219
|
|
|
$
|
(209,565
|
)
|
|
$
|
84,190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income (loss)
|
$
|
84,190
|
|
|
$
|
(561
|
)
|
|
$
|
81,494
|
|
|
$
|
133,526
|
|
|
$
|
(209,565
|
)
|
|
$
|
89,084
|
|
|
NuStar
Energy
|
|
NuStar
Logistics
|
|
NuPOP
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Net cash provided by operating
activities
|
$
|
200,803
|
|
|
$
|
31,209
|
|
|
$
|
58,105
|
|
|
$
|
261,300
|
|
|
$
|
(307,567
|
)
|
|
$
|
243,850
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital expenditures
|
—
|
|
|
(17,136
|
)
|
|
(8,164
|
)
|
|
(223,221
|
)
|
|
—
|
|
|
(248,521
|
)
|
||||||
Change in accounts payable
related to capital expenditures
|
—
|
|
|
495
|
|
|
(5,173
|
)
|
|
(14,642
|
)
|
|
—
|
|
|
(19,320
|
)
|
||||||
Proceeds from sale or disposition
of assets
|
—
|
|
|
1,385
|
|
|
16
|
|
|
696
|
|
|
—
|
|
|
2,097
|
|
||||||
Proceeds from insurance recoveries
|
—
|
|
|
—
|
|
|
—
|
|
|
78,419
|
|
|
—
|
|
|
78,419
|
|
||||||
Acquisitions
|
—
|
|
|
—
|
|
|
(37,502
|
)
|
|
—
|
|
|
—
|
|
|
(37,502
|
)
|
||||||
Net cash used in investing activities
|
—
|
|
|
(15,256
|
)
|
|
(50,823
|
)
|
|
(158,748
|
)
|
|
—
|
|
|
(224,827
|
)
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Debt borrowings
|
—
|
|
|
1,122,272
|
|
|
—
|
|
|
11,000
|
|
|
—
|
|
|
1,133,272
|
|
||||||
Debt repayments
|
—
|
|
|
(1,316,621
|
)
|
|
—
|
|
|
(16,900
|
)
|
|
—
|
|
|
(1,333,521
|
)
|
||||||
Issuance of Series D preferred units
|
400,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
400,000
|
|
||||||
Payment of issuance costs for Series D preferred units
|
(29,289
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(29,289
|
)
|
||||||
Issuance of common units
|
10,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,000
|
|
||||||
Distributions to preferred unitholders
|
(32,713
|
)
|
|
(16,356
|
)
|
|
(16,357
|
)
|
|
(16,358
|
)
|
|
49,071
|
|
|
(32,713
|
)
|
||||||
Distributions to common unitholders and general partner
|
(172,324
|
)
|
|
(86,162
|
)
|
|
(86,162
|
)
|
|
(86,172
|
)
|
|
258,496
|
|
|
(172,324
|
)
|
||||||
Proceeds from termination of
interest rate swaps
|
—
|
|
|
8,048
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,048
|
|
||||||
Net intercompany activity
|
(374,973
|
)
|
|
279,080
|
|
|
95,237
|
|
|
656
|
|
|
—
|
|
|
—
|
|
||||||
Other, net
|
(1,493
|
)
|
|
(4,466
|
)
|
|
—
|
|
|
(64
|
)
|
|
—
|
|
|
(6,023
|
)
|
||||||
Net cash used in financing activities
|
(200,792
|
)
|
|
(14,205
|
)
|
|
(7,282
|
)
|
|
(107,838
|
)
|
|
307,567
|
|
|
(22,550
|
)
|
||||||
Effect of foreign exchange rate changes on cash
|
—
|
|
|
—
|
|
|
—
|
|
|
(421
|
)
|
|
—
|
|
|
(421
|
)
|
||||||
Net increase (decrease) in cash and cash equivalents
|
11
|
|
|
1,748
|
|
|
—
|
|
|
(5,707
|
)
|
|
—
|
|
|
(3,948
|
)
|
||||||
Cash and cash equivalents as of the
beginning of the period
|
885
|
|
|
29
|
|
|
—
|
|
|
23,378
|
|
|
—
|
|
|
24,292
|
|
||||||
Cash and cash equivalents as of the
end of the period
|
$
|
896
|
|
|
$
|
1,777
|
|
|
$
|
—
|
|
|
$
|
17,671
|
|
|
$
|
—
|
|
|
$
|
20,344
|
|
|
NuStar
Energy
|
|
NuStar
Logistics
|
|
NuPOP
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Net cash provided by operating
activities
|
$
|
225,566
|
|
|
$
|
85,203
|
|
|
$
|
45,790
|
|
|
$
|
192,692
|
|
|
$
|
(340,263
|
)
|
|
$
|
208,988
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital expenditures
|
—
|
|
|
(19,639
|
)
|
|
(5,588
|
)
|
|
(83,622
|
)
|
|
—
|
|
|
(108,849
|
)
|
||||||
Change in accounts payable
related to capital expenditures
|
—
|
|
|
(2,823
|
)
|
|
(35
|
)
|
|
9,709
|
|
|
—
|
|
|
6,851
|
|
||||||
Proceeds from sale or disposition
of assets
|
—
|
|
|
1,898
|
|
|
12
|
|
|
56
|
|
|
—
|
|
|
1,966
|
|
||||||
Investment in subsidiaries
|
(1,262,000
|
)
|
|
—
|
|
|
—
|
|
|
(126
|
)
|
|
1,262,126
|
|
|
—
|
|
||||||
Proceeds from Axeon term loan
|
—
|
|
|
110,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
110,000
|
|
||||||
Acquisitions
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,476,719
|
)
|
|
—
|
|
|
(1,476,719
|
)
|
||||||
Net cash (used in) provided by investing activities
|
(1,262,000
|
)
|
|
89,436
|
|
|
(5,611
|
)
|
|
(1,550,702
|
)
|
|
1,262,126
|
|
|
(1,466,751
|
)
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Debt borrowings
|
—
|
|
|
1,536,761
|
|
|
—
|
|
|
65,400
|
|
|
—
|
|
|
1,602,161
|
|
||||||
Debt repayments
|
—
|
|
|
(1,625,739
|
)
|
|
—
|
|
|
(70,500
|
)
|
|
—
|
|
|
(1,696,239
|
)
|
||||||
Note offering, net of issuance costs
|
—
|
|
|
543,313
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
543,313
|
|
||||||
Issuance of other preferred units, net of issuance costs
|
371,802
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
371,802
|
|
||||||
Issuance of common units, net of
issuance costs
|
643,858
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
643,858
|
|
||||||
General partner contribution
|
13,597
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,597
|
|
||||||
Distributions to preferred unitholders
|
(10,696
|
)
|
|
(5,348
|
)
|
|
(5,348
|
)
|
|
(5,348
|
)
|
|
16,044
|
|
|
(10,696
|
)
|
||||||
Distributions to common unitholders and general partner
|
(216,139
|
)
|
|
(108,070
|
)
|
|
(108,069
|
)
|
|
(108,080
|
)
|
|
324,219
|
|
|
(216,139
|
)
|
||||||
Contributions from affiliates
|
—
|
|
|
1,262,000
|
|
|
—
|
|
|
126
|
|
|
(1,262,126
|
)
|
|
—
|
|
||||||
Net intercompany activity
|
236,622
|
|
|
(1,778,816
|
)
|
|
73,237
|
|
|
1,468,957
|
|
|
—
|
|
|
—
|
|
||||||
Other, net
|
(2,613
|
)
|
|
1,319
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
(1,294
|
)
|
||||||
Net cash provided by (used) in financing activities
|
1,036,431
|
|
|
(174,580
|
)
|
|
(40,179
|
)
|
|
1,350,554
|
|
|
(921,863
|
)
|
|
1,250,363
|
|
||||||
Effect of foreign exchange rate
changes on cash
|
—
|
|
|
—
|
|
|
—
|
|
|
649
|
|
|
—
|
|
|
649
|
|
||||||
Net (decrease) increase in cash and
cash equivalents
|
(3
|
)
|
|
59
|
|
|
—
|
|
|
(6,807
|
)
|
|
—
|
|
|
(6,751
|
)
|
||||||
Cash and cash equivalents as of the
beginning of the period
|
870
|
|
|
5
|
|
|
—
|
|
|
35,067
|
|
|
—
|
|
|
35,942
|
|
||||||
Cash and cash equivalents as of the
end of the period
|
$
|
867
|
|
|
$
|
64
|
|
|
$
|
—
|
|
|
$
|
28,260
|
|
|
$
|
—
|
|
|
$
|
29,191
|
|
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;
|
•
|
economic factors, such as commodity price volatility, that impact our fuels marketing segment; and
|
•
|
factors that impact the operations served by our pipeline and storage assets, such as utilization rates and maintenance turnaround schedules of our refining company customers and drilling activity by our crude oil production customers.
|
|
Three Months Ended June 30,
|
|
Change
|
||||||||
|
2018
|
|
2017
|
|
|||||||
Statement of Income Data:
|
|
|
|
|
|
||||||
Revenues:
|
|
|
|
|
|
||||||
Service revenues
|
$
|
302,131
|
|
|
$
|
283,700
|
|
|
$
|
18,431
|
|
Product sales
|
184,073
|
|
|
151,788
|
|
|
32,285
|
|
|||
Total revenues
|
486,204
|
|
|
435,488
|
|
|
50,716
|
|
|||
|
|
|
|
|
|
||||||
Costs and expenses:
|
|
|
|
|
|
||||||
Costs associated with service revenues
|
205,285
|
|
|
181,802
|
|
|
23,483
|
|
|||
Cost of product sales
|
170,849
|
|
|
144,479
|
|
|
26,370
|
|
|||
General and administrative expenses
|
27,981
|
|
|
33,604
|
|
|
(5,623
|
)
|
|||
Other depreciation and amortization expense
|
2,251
|
|
|
2,199
|
|
|
52
|
|
|||
Total costs and expenses
|
406,366
|
|
|
362,084
|
|
|
44,282
|
|
|||
|
|
|
|
|
|
||||||
Operating income
|
79,838
|
|
|
73,404
|
|
|
6,434
|
|
|||
Interest expense, net
|
(48,936
|
)
|
|
(45,612
|
)
|
|
(3,324
|
)
|
|||
Other income, net
|
1,412
|
|
|
88
|
|
|
1,324
|
|
|||
Income before income tax expense
|
32,314
|
|
|
27,880
|
|
|
4,434
|
|
|||
Income tax expense
|
2,915
|
|
|
1,630
|
|
|
1,285
|
|
|||
Net income
|
$
|
29,399
|
|
|
$
|
26,250
|
|
|
$
|
3,149
|
|
Basic net income per common unit
|
$
|
0.15
|
|
|
$
|
0.05
|
|
|
$
|
0.10
|
|
|
Three Months Ended June 30,
|
|
Change
|
||||||||
|
2018
|
|
2017
|
|
|||||||
Pipeline:
|
|
|
|
|
|
||||||
Refined products and ammonia pipelines throughput (barrels/day)
|
565,740
|
|
|
531,529
|
|
|
34,211
|
|
|||
Crude oil pipelines throughput (barrels/day)
|
839,574
|
|
|
558,182
|
|
|
281,392
|
|
|||
Total throughput (barrels/day)
|
1,405,314
|
|
|
1,089,711
|
|
|
315,603
|
|
|||
Throughput revenues
|
$
|
150,276
|
|
|
$
|
126,740
|
|
|
$
|
23,536
|
|
Operating expenses
|
48,706
|
|
|
40,197
|
|
|
8,509
|
|
|||
Depreciation and amortization expense
|
38,591
|
|
|
33,675
|
|
|
4,916
|
|
|||
Segment operating income
|
$
|
62,979
|
|
|
$
|
52,868
|
|
|
$
|
10,111
|
|
Storage:
|
|
|
|
|
|
||||||
Throughput (barrels/day)
|
331,917
|
|
|
337,518
|
|
|
(5,601
|
)
|
|||
Throughput terminal revenues
|
$
|
20,141
|
|
|
$
|
22,122
|
|
|
$
|
(1,981
|
)
|
Storage terminal revenues
|
137,309
|
|
|
136,437
|
|
|
872
|
|
|||
Total revenues
|
157,450
|
|
|
158,559
|
|
|
(1,109
|
)
|
|||
Operating expenses
|
78,244
|
|
|
70,783
|
|
|
7,461
|
|
|||
Depreciation and amortization expense
|
35,022
|
|
|
31,727
|
|
|
3,295
|
|
|||
Segment operating income
|
$
|
44,184
|
|
|
$
|
56,049
|
|
|
$
|
(11,865
|
)
|
Fuels Marketing:
|
|
|
|
|
|
||||||
Product sales and other revenue
|
$
|
180,483
|
|
|
$
|
153,918
|
|
|
$
|
26,565
|
|
Cost of product sales
|
172,724
|
|
|
147,013
|
|
|
25,711
|
|
|||
Gross margin
|
7,759
|
|
|
6,905
|
|
|
854
|
|
|||
Operating expenses
|
4,855
|
|
|
6,616
|
|
|
(1,761
|
)
|
|||
Segment operating income
|
$
|
2,904
|
|
|
$
|
289
|
|
|
$
|
2,615
|
|
Consolidation and Intersegment Eliminations:
|
|
|
|
|
|
||||||
Revenues
|
$
|
(2,005
|
)
|
|
$
|
(3,729
|
)
|
|
$
|
1,724
|
|
Cost of product sales
|
(1,875
|
)
|
|
(2,534
|
)
|
|
659
|
|
|||
Operating expenses
|
(133
|
)
|
|
(1,196
|
)
|
|
1,063
|
|
|||
Total
|
$
|
3
|
|
|
$
|
1
|
|
|
$
|
2
|
|
Consolidated Information:
|
|
|
|
|
|
||||||
Revenues
|
$
|
486,204
|
|
|
$
|
435,488
|
|
|
$
|
50,716
|
|
Costs associated with service revenues:
|
|
|
|
|
|
||||||
Operating expenses
|
131,672
|
|
|
116,400
|
|
|
15,272
|
|
|||
Depreciation and amortization expense
|
73,613
|
|
|
65,402
|
|
|
8,211
|
|
|||
Total costs associated with service revenues
|
205,285
|
|
|
181,802
|
|
|
23,483
|
|
|||
Cost of product sales
|
170,849
|
|
|
144,479
|
|
|
26,370
|
|
|||
Segment operating income
|
110,070
|
|
|
109,207
|
|
|
863
|
|
|||
General and administrative expenses
|
27,981
|
|
|
33,604
|
|
|
(5,623
|
)
|
|||
Other depreciation and amortization expense
|
2,251
|
|
|
2,199
|
|
|
52
|
|
|||
Consolidated operating income
|
$
|
79,838
|
|
|
$
|
73,404
|
|
|
$
|
6,434
|
|
•
|
an increase in revenues of $16.4 million and an increase in throughputs of 249,347 barrels per day resulting from our Permian Crude System acquired in May 2017;
|
•
|
an increase in revenues of $7.0 million and an increase in throughputs of 29,330 barrels per day due to a turnaround at the refinery served by our North Pipeline in the comparable period of 2017; and
|
•
|
an increase in revenues of $3.0 million on the East Pipeline, despite throughputs that remained flat, due to the Council Bluffs Acquisition, as well as an increase in long-haul deliveries resulting in higher average tariffs.
|
|
Six Months Ended June 30,
|
|
Change
|
||||||||
|
2018
|
|
2017
|
|
|||||||
Statement of Income Data:
|
|
|
|
|
|
||||||
Revenues:
|
|
|
|
|
|
||||||
Service revenues
|
$
|
593,544
|
|
|
$
|
550,162
|
|
|
$
|
43,382
|
|
Product sales
|
368,541
|
|
|
372,756
|
|
|
(4,215
|
)
|
|||
Total revenues
|
962,085
|
|
|
922,918
|
|
|
39,167
|
|
|||
|
|
|
|
|
|
||||||
Costs and expenses:
|
|
|
|
|
|
||||||
Costs associated with service revenues
|
384,066
|
|
|
337,499
|
|
|
46,567
|
|
|||
Cost of product sales
|
347,577
|
|
|
352,285
|
|
|
(4,708
|
)
|
|||
General and administrative expenses
|
47,755
|
|
|
58,199
|
|
|
(10,444
|
)
|
|||
Other depreciation and amortization expense
|
4,369
|
|
|
4,392
|
|
|
(23
|
)
|
|||
Total costs and expenses
|
783,767
|
|
|
752,375
|
|
|
31,392
|
|
|||
|
|
|
|
|
|
||||||
Operating income
|
178,318
|
|
|
170,543
|
|
|
7,775
|
|
|||
Interest expense, net
|
(96,708
|
)
|
|
(82,026
|
)
|
|
(14,682
|
)
|
|||
Other income, net
|
81,164
|
|
|
228
|
|
|
80,936
|
|
|||
Income before income tax expense
|
162,774
|
|
|
88,745
|
|
|
74,029
|
|
|||
Income tax expense
|
7,242
|
|
|
4,555
|
|
|
2,687
|
|
|||
Net income
|
$
|
155,532
|
|
|
$
|
84,190
|
|
|
$
|
71,342
|
|
Basic net income per common unit
|
$
|
1.30
|
|
|
$
|
0.51
|
|
|
$
|
0.79
|
|
|
Six Months Ended June 30,
|
|
Change
|
||||||||
|
2018
|
|
2017
|
|
|||||||
Pipeline:
|
|
|
|
|
|
||||||
Refined products pipelines throughput (barrels/day)
|
548,910
|
|
|
522,820
|
|
|
26,090
|
|
|||
Crude oil pipelines throughput (barrels/day)
|
815,568
|
|
|
483,909
|
|
|
331,659
|
|
|||
Total throughput (barrels/day)
|
1,364,478
|
|
|
1,006,729
|
|
|
357,749
|
|
|||
Throughput revenues
|
$
|
287,066
|
|
|
$
|
247,980
|
|
|
$
|
39,086
|
|
Operating expenses
|
91,047
|
|
|
73,271
|
|
|
17,776
|
|
|||
Depreciation and amortization expense
|
75,246
|
|
|
56,813
|
|
|
18,433
|
|
|||
Segment operating income
|
$
|
120,773
|
|
|
$
|
117,896
|
|
|
$
|
2,877
|
|
Storage:
|
|
|
|
|
|
||||||
Throughput (barrels/day)
|
337,892
|
|
|
326,327
|
|
|
11,565
|
|
|||
Throughput terminal revenues
|
$
|
40,157
|
|
|
$
|
42,812
|
|
|
$
|
(2,655
|
)
|
Storage terminal revenues
|
272,621
|
|
|
263,178
|
|
|
9,443
|
|
|||
Total revenues
|
312,778
|
|
|
305,990
|
|
|
6,788
|
|
|||
Operating expenses
|
144,069
|
|
|
132,922
|
|
|
11,147
|
|
|||
Depreciation and amortization expense
|
68,264
|
|
|
63,260
|
|
|
5,004
|
|
|||
Segment operating income
|
$
|
100,445
|
|
|
$
|
109,808
|
|
|
$
|
(9,363
|
)
|
Fuels Marketing:
|
|
|
|
|
|
||||||
Product sales and other revenue
|
$
|
366,321
|
|
|
$
|
376,620
|
|
|
$
|
(10,299
|
)
|
Cost of product sales
|
351,401
|
|
|
357,612
|
|
|
(6,211
|
)
|
|||
Gross margin
|
14,920
|
|
|
19,008
|
|
|
(4,088
|
)
|
|||
Operating expenses
|
5,696
|
|
|
13,579
|
|
|
(7,883
|
)
|
|||
Segment operating income
|
$
|
9,224
|
|
|
$
|
5,429
|
|
|
$
|
3,795
|
|
Consolidation and Intersegment Eliminations:
|
|
|
|
|
|
||||||
Revenues
|
$
|
(4,080
|
)
|
|
$
|
(7,672
|
)
|
|
$
|
3,592
|
|
Cost of product sales
|
(3,824
|
)
|
|
(5,327
|
)
|
|
1,503
|
|
|||
Operating expenses
|
(256
|
)
|
|
(2,346
|
)
|
|
2,090
|
|
|||
Total
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
(1
|
)
|
Consolidated Information:
|
|
|
|
|
|
||||||
Revenues
|
$
|
962,085
|
|
|
$
|
922,918
|
|
|
$
|
39,167
|
|
Costs associated with service revenues:
|
|
|
|
|
|
||||||
Operating expenses
|
240,556
|
|
|
217,426
|
|
|
23,130
|
|
|||
Depreciation and amortization expense
|
143,510
|
|
|
120,073
|
|
|
23,437
|
|
|||
Total costs associated with service revenues
|
384,066
|
|
|
337,499
|
|
|
46,567
|
|
|||
Cost of product sales
|
347,577
|
|
|
352,285
|
|
|
(4,708
|
)
|
|||
Segment operating income
|
230,442
|
|
|
233,134
|
|
|
(2,692
|
)
|
|||
General and administrative expenses
|
47,755
|
|
|
58,199
|
|
|
(10,444
|
)
|
|||
Other depreciation and amortization expense
|
4,369
|
|
|
4,392
|
|
|
(23
|
)
|
|||
Consolidated operating income
|
$
|
178,318
|
|
|
$
|
170,543
|
|
|
$
|
7,775
|
|
•
|
an increase in revenues of $34.9 million and an increase in throughputs of 308,439 barrels per day resulting from our Permian Crude System acquired in May 2017;
|
•
|
an increase in revenues of $9.6 million and an increase in throughputs of 17,190 barrels per day due to a turnaround at the refinery served by our North Pipeline in the second quarter of 2017; and
|
•
|
an increase in revenues of $2.7 million and an increase in throughputs of 5,801 barrels per day on our East Pipeline as a result of the Council Bluffs Acquisition as well as an increase in long-haul deliveries resulting in higher average tariffs.
|
•
|
a decrease in revenues of $2.9 million and a decrease in throughputs of 4,312 barrels per day on the Ammonia pipeline as a result of weather conditions that hindered agricultural application and operational issues at a plant served by the pipeline; and
|
•
|
a decrease in revenues of $4.3 million, despite an increase in throughputs of 19,158 barrels per day, on our Eagle Ford System and Ardmore System, mainly as the result of higher throughputs on short-haul pipeline segments with lower tariff rates.
|
•
|
an increase of $10.7 million at our North East terminals mainly due to an adjustment to revenues resulting from a change in the term of a contract at our Linden terminal. Please refer to Note 13 of the Condensed Notes to Consolidated Financial Statements in Item 1. “Financial Statements” for further discussion;
|
•
|
an increase of $5.2 million at our West terminals, mainly due to completed projects and rate escalations, higher throughput and associated handling fees and higher reimbursable revenue; and
|
•
|
an increase of $2.0 million at our international terminals, mainly due to the effect of foreign exchange rates, partially offset by a decrease in storage revenues.
|
•
|
an increase in salaries and wages of $5.5 million and an increase of $4.5 million in maintenance and regulatory expenses, both spread across various regions;
|
•
|
an increase of $2.7 million in rent expense, primarily at our St. Eustatius terminal due to additional marine vessel costs;
|
•
|
an increase in reimbursable expenses of $2.1 million at various terminals, primarily due to tank cleaning and consistent with the increase in reimbursable revenues; and
|
•
|
an increase in power costs of $1.0 million, mainly at St. Eustatius.
|
|
Six Months Ended June 30,
|
||||||
|
2018
|
|
2017
|
||||
|
(Thousands of Dollars)
|
||||||
Net cash provided by (used in):
|
|
|
|
||||
Operating activities
|
$
|
243,850
|
|
|
$
|
208,988
|
|
Investing activities
|
(224,827
|
)
|
|
(1,466,751
|
)
|
||
Financing activities
|
(22,550
|
)
|
|
1,250,363
|
|
||
Effect of foreign exchange rate changes on cash
|
(421
|
)
|
|
649
|
|
||
Net decrease in cash and cash equivalents
|
$
|
(3,948
|
)
|
|
$
|
(6,751
|
)
|
•
|
$365.4 million
in revenue bonds pursuant to the Gulf Opportunity Zone Act of 2005 (the GoZone Bonds), with
$42.7 million
remaining in trust as of
June 30, 2018
, supported by $370.2 million in letters of credit; and
|
•
|
two short-term line of credit agreements with an aggregate uncommitted borrowing capacity of up to $65.0 million, with
$63.0 million
of borrowings outstanding as of
June 30, 2018
.
|
•
|
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; and
|
•
|
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.
|
|
Strategic
|
|
|
|
|
||||||||||
|
Acquisitions and Investments in Other Long-Term Assets
|
|
Other Capital Expenditures
|
|
Reliability Capital
Expenditures
|
|
Total
|
||||||||
|
(Thousands of Dollars)
|
||||||||||||||
For the six months ended June 30:
|
|
|
|
|
|
|
|
||||||||
2018
|
$
|
37,502
|
|
|
$
|
206,726
|
|
|
$
|
41,795
|
|
|
$
|
286,023
|
|
2017
|
$
|
1,476,719
|
|
|
$
|
93,447
|
|
|
$
|
15,402
|
|
|
$
|
1,585,568
|
|
|
|
|
|
|
|
|
|
||||||||
Expected for the year ended December 31, 2018
|
$
|
37,502
|
|
|
$ 360,000 - 390,000
|
|
|
$ 80,000 - 100,000
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(Thousands of Dollars, Except Per Unit Data)
|
||||||||||||||
General partner interest
|
$
|
—
|
|
|
$
|
2,302
|
|
|
$
|
1,141
|
|
|
$
|
4,645
|
|
General partner incentive distribution
|
—
|
|
|
10,912
|
|
|
—
|
|
|
23,824
|
|
||||
Total general partner distribution
|
—
|
|
|
13,214
|
|
|
1,141
|
|
|
28,469
|
|
||||
Common limited partners’ distribution
|
64,205
|
|
|
101,869
|
|
|
120,121
|
|
|
203,782
|
|
||||
Total cash distributions
|
$
|
64,205
|
|
|
$
|
115,083
|
|
|
$
|
121,262
|
|
|
$
|
232,251
|
|
|
|
|
|
|
|
|
|
||||||||
Cash distributions per unit applicable to common limited partners
|
$
|
0.60
|
|
|
$
|
1.095
|
|
|
$
|
1.200
|
|
|
$
|
2.190
|
|
Quarter Ended
|
|
Cash
Distributions
Per Unit
|
|
Total Cash
Distributions
|
|
Record Date
|
|
Payment Date
|
||||
|
|
|
|
(Thousands of Dollars)
|
|
|
|
|
||||
June 30, 2018
|
|
$
|
0.600
|
|
|
$
|
64,205
|
|
|
August 7, 2018
|
|
August 13, 2018
|
March 31, 2018
|
|
$
|
0.600
|
|
|
$
|
57,057
|
|
|
May 8, 2018
|
|
May 14, 2018
|
December 31, 2017
|
|
$
|
1.095
|
|
|
$
|
115,267
|
|
|
February 8, 2018
|
|
February 13, 2018
|
Period
|
|
Cash
Distributions
Per Unit
|
|
Total Cash
Distributions
|
|
Record Date
|
|
Payment Date
|
||||
|
|
|
|
(Thousands of Dollars)
|
|
|
|
|
||||
Series A Preferred Units:
|
|
|
|
|
|
|
|
|
||||
June 15, 2018 - September 14, 2018
|
|
$
|
0.53125
|
|
|
$
|
4,813
|
|
|
September 4, 2018
|
|
September 17, 2018
|
March 15, 2018 - June 14, 2018
|
|
$
|
0.53125
|
|
|
$
|
4,813
|
|
|
June 1, 2018
|
|
June 15, 2018
|
December 15, 2017 - March 14, 2018
|
|
$
|
0.53125
|
|
|
$
|
4,813
|
|
|
March 1, 2018
|
|
March 15, 2018
|
|
|
|
|
|
|
|
|
|
||||
Series B Preferred Units:
|
|
|
|
|
|
|
|
|
||||
June 15, 2018 to September 14, 2018
|
|
$
|
0.47657
|
|
|
$
|
7,339
|
|
|
September 4, 2018
|
|
September 17, 2018
|
March 15, 2018 to June 14, 2018
|
|
$
|
0.47657
|
|
|
$
|
7,339
|
|
|
June 1, 2018
|
|
June 15, 2018
|
December 15, 2017 to March 14, 2018
|
|
$
|
0.47657
|
|
|
$
|
7,339
|
|
|
March 1, 2018
|
|
March 15, 2018
|
|
|
|
|
|
|
|
|
|
||||
Series C Preferred Units:
|
|
|
|
|
|
|
|
|
||||
June 15, 2018 to September 14, 2018
|
|
$
|
0.56250
|
|
|
$
|
3,881
|
|
|
September 4, 2018
|
|
September 17, 2018
|
March 15, 2018 to June 14, 2018
|
|
$
|
0.56250
|
|
|
$
|
3,881
|
|
|
June 1, 2018
|
|
June 15, 2018
|
November 30, 2017 - March 14, 2018
|
|
$
|
0.65625
|
|
|
$
|
4,528
|
|
|
March 1, 2018
|
|
March 15, 2018
|
•
|
Revolving Credit Agreement due
October 29, 2020
, with
$1.0 billion
of borrowings outstanding as of
June 30, 2018
;
|
•
|
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;
5.625%
senior notes due
April 28, 2027
with a face value of $550.0 million; and
subordinated notes due January 15, 2043 with a face value of $402.5 million and a floating interest rate;
|
•
|
$365.4 million in GoZone Bonds due from 2038 to 2041;
|
•
|
Line of credit agreements with
$63.0 million
of borrowings outstanding as of
June 30, 2018
; and
|
•
|
Receivables Financing Agreement due September 20, 2020, with
$56.4 million
of borrowings outstanding as of
June 30, 2018
.
|
|
S&P
Global Ratings
|
|
Moody’s Investor
Service Inc.
|
|
Fitch, Inc.
|
|
|
|
|
|
|
Ratings
|
BB
|
|
Ba2
|
|
BB
|
Outlook
|
Negative
|
|
Negative
|
|
Negative
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
|
June 30, 2018
|
||||||||||||||||||||||||||||||
|
Expected Maturity Dates
|
|
|
|
|
||||||||||||||||||||||||||
|
2018
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
There-
after
|
|
Total
|
|
Fair
Value
|
||||||||||||||||
|
(Thousands of Dollars, Except Interest Rates)
|
||||||||||||||||||||||||||||||
Long-term Debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Fixed-rate
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
450,000
|
|
|
$
|
300,000
|
|
|
$
|
250,000
|
|
|
$
|
550,000
|
|
|
$
|
1,550,000
|
|
|
$
|
1,545,807
|
|
Weighted-average
interest rate
|
—
|
|
|
—
|
|
|
4.8
|
%
|
|
6.8
|
%
|
|
4.8
|
%
|
|
5.6
|
%
|
|
5.5
|
%
|
|
|
|||||||||
Variable-rate
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,074,058
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
767,940
|
|
|
$
|
1,841,998
|
|
|
$
|
1,849,149
|
|
Weighted-average
interest rate
|
—
|
|
|
—
|
|
|
3.9
|
%
|
|
—
|
|
|
—
|
|
|
5.5
|
%
|
|
4.5
|
%
|
|
|
|
December 31, 2017
|
||||||||||||||||||||||||||||||
|
Expected Maturity Dates
|
|
|
|
|
||||||||||||||||||||||||||
|
2018
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
There-
after
|
|
Total
|
|
Fair
Value
|
||||||||||||||||
|
(Thousands of Dollars, Except Interest Rates)
|
||||||||||||||||||||||||||||||
Long-term Debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Fixed-rate
|
$
|
350,000
|
|
|
$
|
—
|
|
|
$
|
450,000
|
|
|
$
|
300,000
|
|
|
$
|
250,000
|
|
|
$
|
952,500
|
|
|
$
|
2,302,500
|
|
|
$
|
2,355,535
|
|
Weighted-average
interest rate
|
8.4
|
%
|
|
—
|
|
|
4.8
|
%
|
|
6.8
|
%
|
|
4.8
|
%
|
|
6.5
|
%
|
|
6.3
|
%
|
|
|
|||||||||
Variable-rate
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
955,611
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
365,440
|
|
|
$
|
1,321,051
|
|
|
$
|
1,322,087
|
|
Weighted-average
interest rate
|
—
|
|
|
—
|
|
|
3.1
|
%
|
|
—
|
|
|
—
|
|
|
1.7
|
%
|
|
2.7
|
%
|
|
|
Notional Amount
|
|
|
|
Weighted-Average Fixed Rate
|
|
Fair Value
|
|||||||||||||
June 30, 2018
|
|
December 31, 2017
|
|
Period of Hedge
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||
(Thousands of Dollars)
|
|
|
|
|
|
(Thousands of Dollars)
|
|||||||||||||
$
|
—
|
|
|
$
|
350,000
|
|
|
04/2018 - 04/2028
|
|
2.6
|
%
|
|
$
|
—
|
|
|
$
|
(5,394
|
)
|
250,000
|
|
|
250,000
|
|
|
09/2020 - 09/2030
|
|
2.8
|
%
|
|
4,491
|
|
|
(4,594
|
)
|
||||
$
|
250,000
|
|
|
$
|
600,000
|
|
|
|
|
|
|
$
|
4,491
|
|
|
$
|
(9,988
|
)
|
|
June 30, 2018
|
|||||||||||||
|
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)
|
2
|
|
|
$
|
92.81
|
|
|
N/A
|
|
|
$
|
—
|
|
|
Futures – short:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
12
|
|
|
N/A
|
|
|
$
|
91.46
|
|
|
$
|
(16
|
)
|
|
Swaps – short:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
64
|
|
|
N/A
|
|
|
$
|
67.59
|
|
|
$
|
(54
|
)
|
|
|
|
|
|
|
|
|
|
|||||||
Economic Hedges and Other Derivatives:
|
|
|
|
|
|
|
|
|||||||
Futures – long:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
2
|
|
|
$
|
91.48
|
|
|
N/A
|
|
|
$
|
3
|
|
|
Futures – short:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
5
|
|
|
N/A
|
|
|
$
|
92.81
|
|
|
$
|
—
|
|
|
Swaps – long:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
236
|
|
|
$
|
65.57
|
|
|
N/A
|
|
|
$
|
1,010
|
|
|
Swaps – short:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
249
|
|
|
N/A
|
|
|
$
|
65.01
|
|
|
$
|
(1,187
|
)
|
|
|
|
|
|
|
|
|
|
|||||||
Total fair value of open positions exposed to
commodity price risk
|
|
|
|
|
|
|
$
|
(244
|
)
|
|
December 31, 2017
|
|||||||||||||
|
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)
|
2
|
|
|
$
|
86.88
|
|
|
N/A
|
|
|
$
|
—
|
|
|
Futures – short:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
5
|
|
|
N/A
|
|
|
$
|
85.59
|
|
|
$
|
(6
|
)
|
|
Swaps – short:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
149
|
|
|
N/A
|
|
|
$
|
55.79
|
|
|
$
|
(106
|
)
|
|
|
|
|
|
|
|
|
|
|||||||
Economic Hedges and Other Derivatives:
|
|
|
|
|
|
|
|
|||||||
Futures – long:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
10
|
|
|
$
|
86.13
|
|
|
N/A
|
|
|
$
|
7
|
|
|
Futures – short:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
14
|
|
|
N/A
|
|
|
$
|
85.76
|
|
|
$
|
(16
|
)
|
|
Swaps – long:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
196
|
|
|
$
|
55.05
|
|
|
N/A
|
|
|
$
|
264
|
|
|
Swaps – short:
|
|
|
|
|
|
|
|
|||||||
(refined products)
|
199
|
|
|
N/A
|
|
|
$
|
53.76
|
|
|
$
|
(525
|
)
|
|
|
|
|
|
|
|
|
|
|||||||
Total fair value of open positions exposed to
commodity price risk
|
|
|
|
|
|
|
$
|
(382
|
)
|
Item 4.
|
Controls and Procedures
|
(a)
|
Evaluation of disclosure controls and procedures.
|
(b)
|
Changes in internal control over financial reporting.
|
Item 6.
|
Exhibits
|
Exhibit
Number
|
|
Description
|
|
|
|
|
|
3.01
|
|
|
|
|
|
|
|
3.02
|
|
|
|
|
|
|
|
4.01
|
|
|
|
|
|
|
|
10.01
|
|
|
|
|
|
|
|
10.02
|
|
|
|
|
|
|
|
10.03
|
|
|
|
|
|
|
|
10.04
|
|
|
|
|
|
|
|
*10.05
|
|
|
|
|
|
|
|
10.06
|
|
|
|
|
|
|
|
10.07
|
|
|
|
|
|
|
|
10.08
|
|
|
|
|
|
|
|
10.09
|
|
|
|
|
|
|
|
10.10
|
|
|
|
|
|
|
|
10.11
|
|
|
|
|
|
|
|
|
|
|
By:
|
|
/s/ Bradley C. Barron
|
|
|
Bradley C. Barron
|
|
|
President and Chief Executive Officer
|
|
|
August 7, 2018
|
|
|
|
By:
|
|
/s/ Thomas R. Shoaf
|
|
|
Thomas R. Shoaf
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
August 7, 2018
|
|
|
|
By:
|
|
/s/ Jorge A. del Alamo
|
|
|
Jorge A. del Alamo
|
|
|
Senior Vice President and Controller
|
|
|
August 7, 2018
|
By:
|
/s/ Kevin Sparks
|
Name:
|
Kevin Sparks
|
Title:
|
Director
|
By:
|
/s/ Thomas R. Shoaf
|
Name:
|
Thomas R. Shoaf
|
Title:
|
Executive Vice President and
Chief Financial Officer
|
By:
|
/s/ Thomas R. Shoaf
|
Name:
|
Thomas R. Shoaf
|
Title:
|
Executive Vice President and
Chief Financial Officer
|
By:
|
NuStar Pipeline Company, LLC, its General Partner
|
By:
|
/s/ Thomas R. Shoaf
|
Name:
|
Thomas R. Shoaf
|
Title:
|
Executive Vice President and
Chief Financial Officer
|
By:
|
/s/ Katsuyuki Kubo
|
Name:
|
Katsuyuki Kubo
|
Title:
|
Managing Director
|
By:
|
/s/ Kevin Sparks
|
Name:
|
Kevin Sparks
|
Title:
|
Director
|
Subsidiary
|
Jurisdiction of Organization
|
Restricted/
Unrestricted/Material
|
Ownership Percentage
|
Bicen Development Corporation N.V.
|
Netherlands
|
Restricted
|
100%
|
Cooperatie NuStar Holdings U.A.
|
Netherlands
|
Restricted
|
100%
|
LegacyStar Services, LLC
|
Delaware
|
Restricted
|
100%
|
Marshall Merger Sub LLC
|
Delaware
|
Restricted
|
100%
|
NS Security Services, LLC
|
Delaware
|
Restricted
|
100%
|
NuStar Burgos, LLC
|
Delaware
|
Restricted
|
100%
|
NuStar Caribe Terminals, Inc.
|
Delaware
|
Restricted
|
100%
|
NuStar Eastham Limited
|
England
|
Restricted
|
100%
|
NuStar Energy Services, Inc.
|
Delaware
|
Restricted
|
100%
|
NuStar Finance LLC
|
Delaware
|
Restricted
|
100%
|
NuStar GP, Inc.
|
Delaware
|
Restricted
|
100%
|
NuStar Grangemouth Limited
|
Scotland
|
Restricted
|
100%
|
NuStar Holdings B.V.
|
Netherlands
|
Restricted
|
100%
|
NuStar Internacional, S de R.L. de C.V.
|
Mexico
|
Restricted
|
100%
|
NuStar Logistics, L.P.
|
Delaware
|
Restricted - Material
|
100%
|
NuStar Permian Crude Logistics, LLC
|
Delaware
|
Restricted
|
100%
|
NuStar Permian Holdings, LLC
|
Delaware
|
Restricted
|
100%
|
NuStar Permian Transportation and Storage, LLC
|
Delaware
|
Restricted - Material
|
100%
|
NuStar Pipeline Company, LLC
|
Delaware
|
Restricted
|
100%
|
NuStar Pipeline Holding Company, LLC
|
Delaware
|
Restricted
|
100%
|
NuStar Pipeline Operating Partnership L.P.
|
Delaware
|
Restricted - Material
|
100%
|
NuStar Pipeline Partners L.P.
|
Delaware
|
Restricted
|
100%
|
NuStar Refining, LLC
|
Delaware
|
Restricted
|
100%
|
NuStar Services Company LLC
|
Delaware
|
Restricted
|
100%
|
NuStar Supply & Trading LLC
|
Delaware
|
Restricted
|
100%
|
NuStar Terminals Antilles N.V.
|
Curacao
|
Restricted
|
100%
|
NuStar Terminals B.V.
|
Netherlands
|
Restricted
|
100%
|
NuStar Terminals Canada Co.
|
Canada
|
Restricted
|
100%
|
NuStar Terminals Canada Holdings Co.
|
Canada
|
Restricted
|
100%
|
NuStar Terminals Canada Partnership
|
Canada
|
Restricted
|
100%
|
NuStar Terminals Corporation N.V.
|
Curacao
|
Restricted
|
100%
|
Subsidiary
|
Jurisdiction of Organization
|
Restricted/
Unrestricted/Material
|
Ownership Percentage
|
NuStar Terminals Delaware, Inc.
|
Delaware
|
Restricted
|
100%
|
NuStar Terminals International N.V.
|
Curacao
|
Restricted
|
100%
|
NuStar Terminals Limited
|
England
|
Restricted
|
100%
|
NuStar Terminals Marine Services N.V.
|
Netherlands
|
Restricted
|
100%
|
NuStar Terminals New Jersey, Inc.
|
Delaware
|
Restricted
|
100%
|
NuStar Terminals N.V.
|
Netherlands
|
Restricted - Material
|
100%
|
NuStar Terminals Operations Partnership L.P.
|
Delaware
|
Restricted
|
100%
|
NuStar Terminals Partners TX L.P.
|
Delaware
|
Restricted
|
100%
|
NuStar Terminals Services, Inc.
|
Delaware
|
Restricted
|
100%
|
NuStar Terminals Texas, Inc.
|
Delaware
|
Restricted
|
100%
|
NuStar Texas Holdings, Inc.
|
Delaware
|
Restricted
|
100%
|
Petroburgos, S. de R.L. de C.V.
|
Mexico
|
Restricted
|
100%
|
Point Tupper Marine Services Co.
|
Canada
|
Restricted
|
100%
|
Saba Company N.V.
|
Netherlands
|
Restricted
|
100%
|
Seven Seas Steamship Company (Sint
Eustatius) N.V.
|
Netherlands
|
Restricted
|
100%
|
Shore Terminals LLC
|
Delaware
|
Restricted
|
100%
|
ST Linden Terminal, LLC
|
Delaware
|
Restricted
|
100%
|
Star Creek Ranch, LLC
|
Delaware
|
Restricted
|
100%
|
|
Six Months
|
|
|
||||||||||||||||||||
|
Ended
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
June 30,
|
|
Years Ended December 31,
|
||||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||||
Earnings:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) from continuing operations before provision for income taxes and income from equity investees
|
$
|
162,774
|
|
|
$
|
157,901
|
|
|
$
|
161,976
|
|
|
$
|
320,658
|
|
|
$
|
220,174
|
|
|
$
|
(132,786
|
)
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed charges
|
108,935
|
|
|
190,674
|
|
|
154,085
|
|
|
150,661
|
|
|
153,236
|
|
|
149,090
|
|
||||||
Amortization of capitalized interest
|
1,024
|
|
|
1,871
|
|
|
1,722
|
|
|
1,573
|
|
|
1,385
|
|
|
1,216
|
|
||||||
Distributions from joint ventures
|
—
|
|
|
—
|
|
|
—
|
|
|
2,500
|
|
|
7,587
|
|
|
7,956
|
|
||||||
Less:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest capitalized
|
(5,052
|
)
|
|
(5,529
|
)
|
|
(3,414
|
)
|
|
(5,549
|
)
|
|
(5,667
|
)
|
|
(4,501
|
)
|
||||||
Total earnings
|
$
|
267,681
|
|
|
$
|
344,917
|
|
|
$
|
314,369
|
|
|
$
|
469,843
|
|
|
$
|
376,715
|
|
|
$
|
20,975
|
|
Fixed charges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense, net
|
$
|
96,708
|
|
|
$
|
173,083
|
|
|
$
|
138,350
|
|
|
$
|
131,868
|
|
|
$
|
132,281
|
|
|
$
|
127,119
|
|
Interest capitalized
|
5,052
|
|
|
5,529
|
|
|
3,414
|
|
|
5,549
|
|
|
5,667
|
|
|
4,501
|
|
||||||
Rental expense interest factor (a)
|
7,175
|
|
|
12,062
|
|
|
12,321
|
|
|
13,244
|
|
|
15,288
|
|
|
17,470
|
|
||||||
Total fixed charges
|
$
|
108,935
|
|
|
$
|
190,674
|
|
|
$
|
154,085
|
|
|
$
|
150,661
|
|
|
$
|
153,236
|
|
|
$
|
149,090
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Preferred unit distributions (b)
|
$
|
32,235
|
|
|
$
|
40,448
|
|
|
$
|
1,925
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total fixed charges plus preferred unit distributions (b)
|
$
|
141,170
|
|
|
$
|
231,122
|
|
|
$
|
156,010
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Ratio of earnings to fixed charges
|
2.5x
|
|
|
1.8x
|
|
|
2.0x
|
|
|
3.1x
|
|
|
2.5x
|
|
|
(c)
|
|
||||||
Ratio of earnings to fixed charges plus preferred unit distributions (b)
|
1.9x
|
|
|
1.5x
|
|
|
2.0x
|
|
|
|
|
|
|
|
(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 years ended December 31, 2015, 2014 and 2013, we had no preferred units outstanding.
|
(c)
|
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.
|
/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
|
August 7, 2018
|
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
|
August 7, 2018
|