DELAWARE
(State of incorporation
or organization)
|
|
000-50056
(Commission file number)
|
|
05-0527861
(I.R.S. employer identification number)
|
|
|
|
||
4200 STONE ROAD
|
|
|
||
KILGORE, TEXAS
(Address of principal executive offices)
|
|
75662
(Zip code)
|
o
|
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
o
|
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
o
|
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
o
|
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Item 1.01
|
|
Entry into a Material Definitive Agreement.
|
Item 2.02
|
|
Results of Operations and Financial Condition.
|
Item 2.03
|
|
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
|
Item 7.01
|
|
Regulation FD Disclosure
|
Item 9.01
|
|
Financial Statements and Exhibits.
|
|
MARTIN MIDSTREAM PARTNERS L.P.
By: Martin Midstream GP LLC,
Its General Partner
|
|||
Date: July 25, 2018
|
|
By: /s/ Robert D. Bondurant
|
||
|
|
Robert D. Bondurant
|
||
|
|
Executive Vice President, Treasurer, Principal Accounting Officer and
Chief Financial Officer
|
A.
|
Martin GP is a general partner of West Texas LPG Pipeline Limited Partnership, a Texas limited partnership (the “
Partnership
”), and owns general partner interests constituting 0.2000% of the partnership interests (“
GP Interest
”) in the Partnership. ONEOK GP owns the remaining general partner interests in the Partnership.
|
B.
|
Martin LP is a limited partner of the Partnership and owns limited partner interests in the Partnership constituting 19.8000% of the partnership interests (“
LP Interest
” and collectively with the GP Interest the “
Subject Interests
”) in the Partnership. ONEOK LP owns the remaining limited partner interests in the Partnership.
|
C.
|
Martin GP desires to sell to ONEOK GP, and ONEOK GP desires to purchase from Martin GP, the GP Interest on the terms and conditions provided in this Agreement.
|
D.
|
Martin LP desires to sell to ONEOK LP, and ONEOK LP desires to purchase from Martin LP, the LP Interest on the terms and conditions provided in this Agreement.
|
E.
|
Martin GP, Martin LP, ONEOK GP and ONEOK LP, as partners in the Partnership, are subject to that certain First Amended and Restated Limited Partnership Agreement dated May 1, 1999, between the prior general partners and limited partners of the Partnership, as it has been amended by that certain Amendment to First Amended and Restated Limited Partnership Agreement of the West Texas LPG Pipeline Limited Partnership dated to be effective August 8, 2003.
|
A.
|
Martin GP is a general partner of West Texas LPG Pipeline Limited Partnership, a Texas limited partnership (the “
Partnership
”), and owns general partner interests constituting 0.2000% of the partnership interests (“
GP Interest
”) in the Partnership.
|
B.
|
Martin LP is a limited partner of the Partnership and owns limited partner interests in the Partnership constituting 19.8000% of the partnership interests (“
LP Interest
”) in the Partnership.
|
C.
|
The Parties are parties to that certain Partnership Interest Purchase Agreement, dated as of July __, 2018 (as same may be amended, the “
Purchase Agreement
”).
|
D.
|
Martin GP desires to sell to ONEOK GP, and ONEOK GP desires to purchase from Martin GP, the GP Interest on the terms and conditions provided in this Assignment and the Purchase Agreement.
|
E.
|
Martin LP desires to sell to ONEOK LP, and ONEOK LP desires to purchase from Martin LP, the LP Interest on the terms and conditions provided in this Assignment and the Purchase Agreement.
|
F.
|
Martin GP, Martin LP, ONEOK GP and ONEOK LP, as partners in the Partnership, are subject to that certain First Amended and Restated Limited Partnership Agreement dated May 1, 1999, between the prior general partners and limited partners of the Partnership, as it has been amended by that certain Amendment to First Amended and Restated Limited Partnership Agreement of the West Texas LPG Pipeline Limited Partnership dated to be effective August 8, 2003 (the “
Partnership Agreement
”).
|
Title:
|
Executive Vice President and Chief
|
Title:
|
Executive Vice President and Chief
|
•
|
Agreement to Divest West Texas LPG Pipeline Interest
|
•
|
Improved Pro-Forma Total Leverage to 4.36 times
|
•
|
Quarterly Distribution Coverage Ratio In-Line with Guidance
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
|
(Unaudited)
|
|
(Audited)
|
||||
Assets
|
|
|
|
||||
Cash
|
$
|
610
|
|
|
$
|
27
|
|
Accounts and other receivables, less allowance for doubtful accounts of $405 and $314, respectively
|
60,884
|
|
|
107,242
|
|
||
Product exchange receivables
|
174
|
|
|
29
|
|
||
Inventories (Note 6)
|
113,100
|
|
|
97,252
|
|
||
Due from affiliates
|
21,031
|
|
|
23,668
|
|
||
Other current assets
|
5,368
|
|
|
4,866
|
|
||
Assets held for sale (Note 4)
|
8,158
|
|
|
9,579
|
|
||
Total current assets
|
209,325
|
|
|
242,663
|
|
||
|
|
|
|
||||
Property, plant and equipment, at cost
|
1,273,392
|
|
|
1,253,065
|
|
||
Accumulated depreciation
|
(450,564
|
)
|
|
(421,137
|
)
|
||
Property, plant and equipment, net
|
822,828
|
|
|
831,928
|
|
||
|
|
|
|
||||
Goodwill
|
17,296
|
|
|
17,296
|
|
||
Investment in WTLPG (Note 7)
|
141,114
|
|
|
128,810
|
|
||
Other assets, net (Note 9)
|
28,202
|
|
|
32,801
|
|
||
Total assets
|
$
|
1,218,765
|
|
|
$
|
1,253,498
|
|
|
|
|
|
||||
Liabilities and Partners’ Capital
|
|
|
|
|
|
||
Trade and other accounts payable
|
$
|
72,945
|
|
|
$
|
92,567
|
|
Product exchange payables
|
13,015
|
|
|
11,751
|
|
||
Due to affiliates
|
1,271
|
|
|
3,168
|
|
||
Income taxes payable
|
400
|
|
|
510
|
|
||
Fair value of derivatives (Note 10)
|
572
|
|
|
72
|
|
||
Other accrued liabilities (Note 9)
|
23,093
|
|
|
26,340
|
|
||
Total current liabilities
|
111,296
|
|
|
134,408
|
|
||
|
|
|
|
||||
Long-term debt, net (Note 8)
|
831,928
|
|
|
812,632
|
|
||
Other long-term obligations
|
10,842
|
|
|
8,217
|
|
||
Total liabilities
|
954,066
|
|
|
955,257
|
|
||
|
|
|
|
||||
Commitments and contingencies (Note 15)
|
|
|
|
|
|
||
Partners’ capital (Note 11)
|
264,699
|
|
|
298,241
|
|
||
Total partners’ capital
|
264,699
|
|
|
298,241
|
|
||
Total liabilities and partners' capital
|
$
|
1,218,765
|
|
|
$
|
1,253,498
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Terminalling and storage *
|
$
|
24,090
|
|
|
$
|
24,695
|
|
|
$
|
48,154
|
|
|
$
|
49,353
|
|
Marine transportation *
|
12,739
|
|
|
12,433
|
|
|
24,193
|
|
|
25,254
|
|
||||
Natural gas services*
|
13,804
|
|
|
14,838
|
|
|
29,160
|
|
|
29,503
|
|
||||
Sulfur services
|
2,787
|
|
|
2,850
|
|
|
5,574
|
|
|
5,700
|
|
||||
Product sales: *
|
|
|
|
|
|
|
|
||||||||
Natural gas services
|
90,643
|
|
|
73,666
|
|
|
249,806
|
|
|
200,323
|
|
||||
Sulfur services
|
35,684
|
|
|
32,027
|
|
|
70,584
|
|
|
71,554
|
|
||||
Terminalling and storage
|
36,824
|
|
|
33,413
|
|
|
73,304
|
|
|
65,560
|
|
||||
|
163,151
|
|
|
139,106
|
|
|
393,694
|
|
|
337,437
|
|
||||
Total revenues
|
216,571
|
|
|
193,922
|
|
|
500,775
|
|
|
447,247
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of products sold: (excluding depreciation and amortization)
|
|
|
|
|
|
|
|
|
|
|
|
||||
Natural gas services *
|
87,642
|
|
|
70,198
|
|
|
230,599
|
|
|
178,377
|
|
||||
Sulfur services *
|
28,739
|
|
|
21,207
|
|
|
52,635
|
|
|
45,690
|
|
||||
Terminalling and storage *
|
33,206
|
|
|
29,897
|
|
|
66,166
|
|
|
58,026
|
|
||||
|
149,587
|
|
|
121,302
|
|
|
349,400
|
|
|
282,093
|
|
||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating expenses *
|
31,510
|
|
|
32,552
|
|
|
62,964
|
|
|
65,926
|
|
||||
Selling, general and administrative *
|
8,572
|
|
|
8,909
|
|
|
18,240
|
|
|
18,830
|
|
||||
Depreciation and amortization
|
20,891
|
|
|
20,326
|
|
|
40,101
|
|
|
45,662
|
|
||||
Total costs and expenses
|
210,560
|
|
|
183,089
|
|
|
470,705
|
|
|
412,511
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Other operating income (loss)
|
(490
|
)
|
|
15
|
|
|
(492
|
)
|
|
(140
|
)
|
||||
Operating income
|
5,521
|
|
|
10,848
|
|
|
29,578
|
|
|
34,596
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equity in earnings of WTLPG
|
1,131
|
|
|
853
|
|
|
2,726
|
|
|
1,758
|
|
||||
Interest expense, net
|
(13,766
|
)
|
|
(11,219
|
)
|
|
(26,451
|
)
|
|
(22,139
|
)
|
||||
Other, net
|
—
|
|
|
520
|
|
|
—
|
|
|
550
|
|
||||
Total other expense
|
(12,635
|
)
|
|
(9,846
|
)
|
|
(23,725
|
)
|
|
(19,831
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income (loss) before taxes
|
(7,114
|
)
|
|
1,002
|
|
|
5,853
|
|
|
14,765
|
|
||||
Income tax expense
|
(132
|
)
|
|
(13
|
)
|
|
(281
|
)
|
|
(193
|
)
|
||||
Net income (loss)
|
(7,246
|
)
|
|
989
|
|
|
5,572
|
|
|
14,572
|
|
||||
Less general partner's interest in net (income) loss
|
145
|
|
|
(19
|
)
|
|
(111
|
)
|
|
(291
|
)
|
||||
Less (income) loss allocable to unvested restricted units
|
6
|
|
|
(3
|
)
|
|
(2
|
)
|
|
(38
|
)
|
||||
Limited partners' interest in net income (loss)
|
$
|
(7,095
|
)
|
|
$
|
967
|
|
|
$
|
5,459
|
|
|
$
|
14,243
|
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per unit attributable to limited partners - basic
|
$
|
(0.18
|
)
|
|
$
|
0.03
|
|
|
$
|
0.14
|
|
|
$
|
0.38
|
|
Net income (loss) per unit attributable to limited partners - diluted
|
$
|
(0.18
|
)
|
|
$
|
0.03
|
|
|
$
|
0.14
|
|
|
$
|
0.38
|
|
Weighted average limited partner units - basic
|
38,722
|
|
|
38,357
|
|
|
38,829
|
|
|
37,842
|
|
||||
Weighted average limited partner units - diluted
|
38,722
|
|
|
38,414
|
|
|
38,834
|
|
|
37,895
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Revenues:*
|
|
|
|
|
|
|
|
||||||||
Terminalling and storage
|
$
|
20,507
|
|
|
$
|
20,331
|
|
|
$
|
40,532
|
|
|
$
|
40,035
|
|
Marine transportation
|
4,105
|
|
|
4,187
|
|
|
7,718
|
|
|
8,512
|
|
||||
Natural gas services
|
—
|
|
|
6
|
|
|
—
|
|
|
118
|
|
||||
Product Sales
|
426
|
|
|
724
|
|
|
1,068
|
|
|
2,154
|
|
||||
Costs and expenses:*
|
|
|
|
|
|
|
|
||||||||
Cost of products sold: (excluding depreciation and amortization)
|
|
|
|
|
|
|
|
||||||||
Natural gas services
|
3,099
|
|
|
2,909
|
|
|
7,417
|
|
|
11,803
|
|
||||
Sulfur services
|
4,345
|
|
|
3,767
|
|
|
8,871
|
|
|
7,442
|
|
||||
Terminalling and storage
|
8,009
|
|
|
4,119
|
|
|
14,567
|
|
|
9,186
|
|
||||
Expenses:
|
|
|
|
|
|
|
|
||||||||
Operating expenses
|
14,339
|
|
|
16,452
|
|
|
27,723
|
|
|
32,828
|
|
||||
Selling, general and administrative
|
6,498
|
|
|
6,500
|
|
|
14,219
|
|
|
14,068
|
|
|
Partners’ Capital
|
|
|
|||||||||||
|
Common Limited
|
|
General Partner Amount
|
|
|
|||||||||
|
Units
|
|
Amount
|
|
|
Total
|
||||||||
Balances - January 1, 2017
|
35,452,062
|
|
|
$
|
304,594
|
|
|
$
|
7,412
|
|
|
$
|
312,006
|
|
Net income
|
—
|
|
|
14,281
|
|
|
291
|
|
|
14,572
|
|
|||
Issuance of common units, net
|
2,990,000
|
|
|
51,071
|
|
|
—
|
|
|
51,071
|
|
|||
Issuance of restricted units
|
12,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Forfeiture of restricted units
|
(1,750
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
General partner contribution
|
—
|
|
|
—
|
|
|
1,098
|
|
|
1,098
|
|
|||
Cash distributions
|
—
|
|
|
(36,952
|
)
|
|
(754
|
)
|
|
(37,706
|
)
|
|||
Unit-based compensation
|
—
|
|
|
405
|
|
|
—
|
|
|
405
|
|
|||
Purchase of treasury units
|
(200
|
)
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
|||
Excess purchase price over carrying value of acquired assets
|
—
|
|
|
(7,887
|
)
|
|
—
|
|
|
(7,887
|
)
|
|||
Reimbursement of excess purchase price over carrying value of acquired assets
|
—
|
|
|
1,125
|
|
|
—
|
|
|
1,125
|
|
|||
Balances - June 30, 2017
|
38,452,112
|
|
|
$
|
326,633
|
|
|
$
|
8,047
|
|
|
$
|
334,680
|
|
|
|
|
|
|
|
|
|
|||||||
Balances - January 1, 2018
|
38,444,612
|
|
|
$
|
290,927
|
|
|
$
|
7,314
|
|
|
$
|
298,241
|
|
Net income
|
—
|
|
|
5,461
|
|
|
111
|
|
|
5,572
|
|
|||
Issuance of common units, net of issuance related costs
|
—
|
|
|
(118
|
)
|
|
—
|
|
|
(118
|
)
|
|||
Issuance of restricted units
|
633,425
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Forfeiture of restricted units
|
(7,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Cash distributions
|
—
|
|
|
(38,433
|
)
|
|
(784
|
)
|
|
(39,217
|
)
|
|||
Unit-based compensation
|
—
|
|
|
520
|
|
|
—
|
|
|
520
|
|
|||
Excess purchase price over carrying value of acquired assets
|
—
|
|
|
(26
|
)
|
|
—
|
|
|
(26
|
)
|
|||
Purchase of treasury units
|
(18,800
|
)
|
|
(273
|
)
|
|
—
|
|
|
(273
|
)
|
|||
Balances - June 30, 2018
|
39,052,237
|
|
|
$
|
258,058
|
|
|
$
|
6,641
|
|
|
$
|
264,699
|
|
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
|
2018
|
|
2017
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
5,572
|
|
|
$
|
14,572
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||
Depreciation and amortization
|
40,101
|
|
|
45,662
|
|
||
Amortization of deferred debt issuance costs
|
1,689
|
|
|
1,445
|
|
||
Amortization of premium on notes payable
|
(153
|
)
|
|
(153
|
)
|
||
Loss on sale of property, plant and equipment
|
492
|
|
|
140
|
|
||
Equity in earnings of WTLPG
|
(2,726
|
)
|
|
(1,758
|
)
|
||
Derivative (income) loss
|
(2,069
|
)
|
|
2,392
|
|
||
Net cash received (paid) for commodity derivatives
|
2,569
|
|
|
(6,429
|
)
|
||
Unit-based compensation
|
520
|
|
|
405
|
|
||
Cash distributions from WTLPG
|
3,000
|
|
|
2,500
|
|
||
Change in current assets and liabilities, excluding effects of acquisitions and dispositions:
|
|
|
|
|
|
||
Accounts and other receivables
|
46,592
|
|
|
29,522
|
|
||
Product exchange receivables
|
(145
|
)
|
|
(13
|
)
|
||
Inventories
|
(15,900
|
)
|
|
(19,065
|
)
|
||
Due from affiliates
|
2,632
|
|
|
(9,726
|
)
|
||
Other current assets
|
(699
|
)
|
|
(1,372
|
)
|
||
Trade and other accounts payable
|
(17,333
|
)
|
|
(4,067
|
)
|
||
Product exchange payables
|
1,264
|
|
|
246
|
|
||
Due to affiliates
|
(1,897
|
)
|
|
(5,774
|
)
|
||
Income taxes payable
|
(110
|
)
|
|
(468
|
)
|
||
Other accrued liabilities
|
(5,480
|
)
|
|
(2,761
|
)
|
||
Change in other non-current assets and liabilities
|
584
|
|
|
490
|
|
||
Net cash provided by operating activities
|
58,503
|
|
|
45,788
|
|
||
|
|
|
|
||||
Cash flows from investing activities:
|
|
|
|
|
|
||
Payments for property, plant and equipment
|
(23,566
|
)
|
|
(19,756
|
)
|
||
Acquisitions
|
—
|
|
|
(19,533
|
)
|
||
Payments for plant turnaround costs
|
—
|
|
|
(1,591
|
)
|
||
Proceeds from sale of property, plant and equipment
|
98
|
|
|
1,597
|
|
||
Proceeds from repayment of Note receivable - affiliate
|
—
|
|
|
15,000
|
|
||
Contributions to WTLPG
|
(12,578
|
)
|
|
(145
|
)
|
||
Net cash used in investing activities
|
(36,046
|
)
|
|
(24,428
|
)
|
||
|
|
|
|
||||
Cash flows from financing activities:
|
|
|
|
|
|
||
Payments of long-term debt
|
(199,000
|
)
|
|
(184,000
|
)
|
||
Proceeds from long-term debt
|
218,000
|
|
|
155,000
|
|
||
Proceeds from issuance of common units, net of issuance related costs
|
(118
|
)
|
|
51,071
|
|
||
General partner contribution
|
—
|
|
|
1,098
|
|
||
Purchase of treasury units
|
(273
|
)
|
|
(4
|
)
|
||
Payment of debt issuance costs
|
(1,240
|
)
|
|
(40
|
)
|
||
Excess purchase price over carrying value of acquired assets
|
(26
|
)
|
|
(7,887
|
)
|
||
Reimbursement of excess purchase price over carrying value of acquired assets
|
—
|
|
|
1,125
|
|
||
Cash distributions paid
|
(39,217
|
)
|
|
(37,706
|
)
|
||
Net cash used in financing activities
|
(21,874
|
)
|
|
(21,343
|
)
|
||
|
|
|
|
||||
Net increase in cash
|
583
|
|
|
17
|
|
||
Cash at beginning of period
|
27
|
|
|
15
|
|
||
Cash at end of period
|
$
|
610
|
|
|
$
|
32
|
|
Non-cash additions to property, plant and equipment
|
$
|
1,811
|
|
|
$
|
3,666
|
|
|
Three Months Ended June 30,
|
|
Variance
|
|
Percent Change
|
|||||||||
|
2018
|
|
2017
|
|
|
|||||||||
|
(In thousands, except BBL per day)
|
|
|
|||||||||||
Revenues:
|
|
|
|
|
|
|
|
|||||||
Services
|
$
|
25,491
|
|
|
$
|
26,148
|
|
|
$
|
(657
|
)
|
|
(3
|
)%
|
Products
|
36,823
|
|
|
33,413
|
|
|
3,410
|
|
|
10
|
%
|
|||
Total revenues
|
62,314
|
|
|
59,561
|
|
|
2,753
|
|
|
5
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
Cost of products sold
|
33,596
|
|
|
30,474
|
|
|
3,122
|
|
|
10
|
%
|
|||
Operating expenses
|
12,909
|
|
|
13,198
|
|
|
(289
|
)
|
|
(2
|
)%
|
|||
Selling, general and administrative expenses
|
1,334
|
|
|
1,444
|
|
|
(110
|
)
|
|
(8
|
)%
|
|||
Depreciation and amortization
|
11,690
|
|
|
10,327
|
|
|
1,363
|
|
|
13
|
%
|
|||
|
2,785
|
|
|
4,118
|
|
|
(1,333
|
)
|
|
(32
|
)%
|
|||
Other operating income (loss)
|
(36
|
)
|
|
10
|
|
|
(46
|
)
|
|
(460
|
)%
|
|||
Operating income
|
$
|
2,749
|
|
|
$
|
4,128
|
|
|
$
|
(1,379
|
)
|
|
(33
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Lubricant sales volumes (gallons)
|
6,408
|
|
|
5,361
|
|
|
1,047
|
|
|
20
|
%
|
|||
Shore-based throughput volumes (guaranteed minimum) (gallons)
|
20,000
|
|
|
41,666
|
|
|
(21,666
|
)
|
|
(52
|
)%
|
|||
Smackover refinery throughput volumes (guaranteed minimum BBL per day)
|
6,500
|
|
|
6,500
|
|
|
—
|
|
|
—
|
%
|
|
Six Months Ended June 30,
|
|
Variance
|
|
Percent Change
|
|||||||||
|
2018
|
|
2017
|
|
|
|||||||||
|
(In thousands, except BBL per day)
|
|
|
|||||||||||
Revenues:
|
|
|
|
|
|
|
|
|||||||
Services
|
$
|
50,994
|
|
|
$
|
52,579
|
|
|
$
|
(1,585
|
)
|
|
(3
|
)%
|
Products
|
73,303
|
|
|
65,560
|
|
|
7,743
|
|
|
12
|
%
|
|||
Total revenues
|
124,297
|
|
|
118,139
|
|
|
6,158
|
|
|
5
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
Cost of products sold
|
67,098
|
|
|
59,168
|
|
|
7,930
|
|
|
13
|
%
|
|||
Operating expenses
|
26,356
|
|
|
27,160
|
|
|
(804
|
)
|
|
(3
|
)%
|
|||
Selling, general and administrative expenses
|
2,590
|
|
|
2,769
|
|
|
(179
|
)
|
|
(6
|
)%
|
|||
Depreciation and amortization
|
21,849
|
|
|
25,804
|
|
|
(3,955
|
)
|
|
(15
|
)%
|
|||
|
6,404
|
|
|
3,238
|
|
|
3,166
|
|
|
98
|
%
|
|||
Other operating loss
|
(36
|
)
|
|
(3
|
)
|
|
(33
|
)
|
|
1,100
|
%
|
|||
Operating income
|
$
|
6,368
|
|
|
$
|
3,235
|
|
|
$
|
3,133
|
|
|
97
|
%
|
|
|
|
|
|
|
|
|
|||||||
Lubricant sales volumes (gallons)
|
12,318
|
|
|
10,695
|
|
|
1,623
|
|
|
15
|
%
|
|||
Shore-based throughput volumes (guaranteed minimum) (gallons)
|
20,000
|
|
|
83,332
|
|
|
(63,332
|
)
|
|
(76
|
)%
|
|||
Smackover refinery throughput volumes (guaranteed minimum) (BBL per day)
|
6,500
|
|
|
6,500
|
|
|
—
|
|
|
—
|
%
|
|
Three Months Ended June 30,
|
|
Variance
|
|
Percent Change
|
|||||||||
|
2018
|
|
2017
|
|
|
|||||||||
|
(In thousands)
|
|
|
|||||||||||
Revenues:
|
|
|
|
|
|
|
|
|||||||
Services
|
$
|
13,804
|
|
|
$
|
14,838
|
|
|
$
|
(1,034
|
)
|
|
(7
|
)%
|
Products
|
90,643
|
|
|
73,666
|
|
|
16,977
|
|
|
23
|
%
|
|||
Total revenues
|
104,447
|
|
|
88,504
|
|
|
15,943
|
|
|
18
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
Cost of products sold
|
88,394
|
|
|
71,003
|
|
|
17,391
|
|
|
24
|
%
|
|||
Operating expenses
|
5,895
|
|
|
5,567
|
|
|
328
|
|
|
6
|
%
|
|||
Selling, general and administrative expenses
|
1,759
|
|
|
2,115
|
|
|
(356
|
)
|
|
(17
|
)%
|
|||
Depreciation and amortization
|
5,304
|
|
|
6,205
|
|
|
(901
|
)
|
|
(15
|
)%
|
|||
|
3,095
|
|
|
3,614
|
|
|
(519
|
)
|
|
(14
|
)%
|
|||
Other operating income (loss)
|
(120
|
)
|
|
5
|
|
|
(125
|
)
|
|
(2,500
|
)%
|
|||
Operating income
|
$
|
2,975
|
|
|
$
|
3,619
|
|
|
$
|
(644
|
)
|
|
(18
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Distributions from WTLPG
|
$
|
1,500
|
|
|
$
|
1,300
|
|
|
$
|
200
|
|
|
15
|
%
|
|
|
|
|
|
|
|
|
|||||||
NGL sales volumes (Bbls)
|
1,743
|
|
|
1,794
|
|
|
(51
|
)
|
|
(3
|
)%
|
|
Six Months Ended June 30,
|
|
Variance
|
|
Percent Change
|
|||||||||
|
2018
|
|
2017
|
|
|
|||||||||
|
(In thousands)
|
|
|
|||||||||||
Revenues:
|
|
|
|
|
|
|
|
|||||||
Services
|
$
|
29,160
|
|
|
$
|
29,503
|
|
|
$
|
(343
|
)
|
|
(1
|
)%
|
Products
|
249,806
|
|
|
200,323
|
|
|
49,483
|
|
|
25
|
%
|
|||
Total revenues
|
278,966
|
|
|
229,826
|
|
|
49,140
|
|
|
21
|
%
|
|||
|
|
|
|
|
|
|
|
|
||||||
Cost of products sold
|
232,142
|
|
|
180,306
|
|
|
51,836
|
|
|
29
|
%
|
|||
Operating expenses
|
11,675
|
|
|
11,225
|
|
|
450
|
|
|
4
|
%
|
|||
Selling, general and administrative expenses
|
4,829
|
|
|
5,166
|
|
|
(337
|
)
|
|
(7
|
)%
|
|||
Depreciation and amortization
|
10,605
|
|
|
12,366
|
|
|
(1,761
|
)
|
|
(14
|
)%
|
|||
|
19,715
|
|
|
20,763
|
|
|
(1,048
|
)
|
|
(5
|
)%
|
|||
Other operating income (loss)
|
(120
|
)
|
|
5
|
|
|
(125
|
)
|
|
(2,500
|
)%
|
|||
Operating income
|
$
|
19,595
|
|
|
$
|
20,768
|
|
|
$
|
(1,173
|
)
|
|
(6
|
)%
|
|
|
|
|
|
|
|
|
|
||||||
Distributions from WTLPG
|
$
|
3,000
|
|
|
$
|
2,500
|
|
|
$
|
500
|
|
|
20
|
%
|
|
|
|
|
|
|
|
|
|
||||||
NGL sales volumes (Bbls)
|
5,184
|
|
|
4,604
|
|
|
580
|
|
|
13
|
%
|
|
Three Months Ended June 30,
|
|
Variance
|
|
Percent Change
|
|||||||||
|
2018
|
|
2017
|
|
|
|||||||||
|
(In thousands)
|
|
|
|||||||||||
Revenues:
|
|
|
|
|
|
|
|
|||||||
Services
|
$
|
2,787
|
|
|
$
|
2,850
|
|
|
$
|
(63
|
)
|
|
(2
|
)%
|
Products
|
35,684
|
|
|
32,027
|
|
|
3,657
|
|
|
11
|
%
|
|||
Total revenues
|
38,471
|
|
|
34,877
|
|
|
3,594
|
|
|
10
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
Cost of products sold
|
28,829
|
|
|
21,297
|
|
|
7,532
|
|
|
35
|
%
|
|||
Operating expenses
|
2,929
|
|
|
3,417
|
|
|
(488
|
)
|
|
(14
|
)%
|
|||
Selling, general and administrative expenses
|
1,046
|
|
|
1,007
|
|
|
39
|
|
|
4
|
%
|
|||
Depreciation and amortization
|
2,086
|
|
|
2,030
|
|
|
56
|
|
|
3
|
%
|
|||
|
3,581
|
|
|
7,126
|
|
|
(3,545
|
)
|
|
(50
|
)%
|
|||
Other operating income
|
16
|
|
|
—
|
|
|
16
|
|
|
|
|
|||
Operating income
|
$
|
3,597
|
|
|
$
|
7,126
|
|
|
$
|
(3,529
|
)
|
|
(50
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Sulfur (long tons)
|
178
|
|
|
192
|
|
|
(14
|
)
|
|
(7
|
)%
|
|||
Fertilizer (long tons)
|
93
|
|
|
71
|
|
|
22
|
|
|
31
|
%
|
|||
Total sulfur services volumes (long tons)
|
271
|
|
|
263
|
|
|
8
|
|
|
3
|
%
|
|
Six Months Ended June 30,
|
|
Variance
|
|
Percent Change
|
|||||||||
|
2018
|
|
2017
|
|
|
|||||||||
|
(In thousands)
|
|
|
|||||||||||
Revenues:
|
|
|
|
|
|
|
|
|||||||
Services
|
$
|
5,574
|
|
|
$
|
5,700
|
|
|
$
|
(126
|
)
|
|
(2
|
)%
|
Products
|
70,584
|
|
|
71,554
|
|
|
(970
|
)
|
|
(1
|
)%
|
|||
Total revenues
|
76,158
|
|
|
77,254
|
|
|
(1,096
|
)
|
|
(1
|
)%
|
|||
|
|
|
|
|
|
|
|
|||||||
Cost of products sold
|
52,816
|
|
|
45,871
|
|
|
6,945
|
|
|
15
|
%
|
|||
Operating expenses
|
5,841
|
|
|
6,664
|
|
|
(823
|
)
|
|
(12
|
)%
|
|||
Selling, general and administrative expenses
|
2,081
|
|
|
2,028
|
|
|
53
|
|
|
3
|
%
|
|||
Depreciation and amortization
|
4,150
|
|
|
4,063
|
|
|
87
|
|
|
2
|
%
|
|||
|
11,270
|
|
|
18,628
|
|
|
(7,358
|
)
|
|
(39
|
)%
|
|||
Other operating income (loss)
|
14
|
|
|
(22
|
)
|
|
36
|
|
|
(164
|
)%
|
|||
Operating income
|
$
|
11,284
|
|
|
$
|
18,606
|
|
|
$
|
(7,322
|
)
|
|
(39
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Sulfur (long tons)
|
354
|
|
|
409
|
|
|
(55
|
)
|
|
(13
|
)%
|
|||
Fertilizer (long tons)
|
181
|
|
|
165
|
|
|
16
|
|
|
10
|
%
|
|||
Total sulfur services volumes (long tons)
|
535
|
|
|
574
|
|
|
(39
|
)
|
|
(7
|
)%
|
|
Three Months Ended June 30,
|
|
Variance
|
|
Percent Change
|
||||||||
|
2018
|
|
2017
|
|
|
||||||||
|
(In thousands)
|
|
|
||||||||||
Revenues
|
$
|
13,168
|
|
|
$
|
13,144
|
|
|
$
|
24
|
|
|
—%
|
Operating expenses
|
10,374
|
|
|
11,062
|
|
|
(688
|
)
|
|
(6)%
|
|||
Selling, general and administrative expenses
|
87
|
|
|
71
|
|
|
16
|
|
|
23%
|
|||
Depreciation and amortization
|
1,811
|
|
|
1,764
|
|
|
47
|
|
|
3%
|
|||
|
896
|
|
|
247
|
|
|
649
|
|
|
263%
|
|||
Other operating loss
|
(350
|
)
|
|
—
|
|
|
(350
|
)
|
|
|
|||
Operating income
|
$
|
546
|
|
|
$
|
247
|
|
|
$
|
299
|
|
|
121%
|
|
Six Months Ended June 30,
|
|
Variance
|
|
Percent Change
|
||||||||
|
2018
|
|
2017
|
|
|
||||||||
|
(In thousands)
|
|
|
||||||||||
Revenues
|
$
|
25,196
|
|
|
$
|
26,558
|
|
|
$
|
(1,362
|
)
|
|
(5)%
|
Operating expenses
|
20,278
|
|
|
22,155
|
|
|
(1,877
|
)
|
|
(8)%
|
|||
Selling, general and administrative expenses
|
163
|
|
|
175
|
|
|
(12
|
)
|
|
(7)%
|
|||
Depreciation and amortization
|
3,497
|
|
|
3,429
|
|
|
68
|
|
|
2%
|
|||
|
$
|
1,258
|
|
|
$
|
799
|
|
|
$
|
459
|
|
|
57%
|
Other operating loss
|
(350
|
)
|
|
(120
|
)
|
|
(230
|
)
|
|
192%
|
|||
Operating income
|
$
|
908
|
|
|
$
|
679
|
|
|
$
|
229
|
|
|
34%
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(in thousands)
|
||||||||||||||
Net income (loss)
|
$
|
(7,246
|
)
|
|
$
|
989
|
|
|
$
|
5,572
|
|
|
$
|
14,572
|
|
Adjustments:
|
|
|
|
|
|
|
|
||||||||
Interest expense, net
|
13,766
|
|
|
11,219
|
|
|
26,451
|
|
|
22,139
|
|
||||
Income tax expense
|
132
|
|
|
13
|
|
|
281
|
|
|
193
|
|
||||
Depreciation and amortization
|
20,891
|
|
|
20,326
|
|
|
40,101
|
|
|
45,662
|
|
||||
EBITDA
|
27,543
|
|
|
32,547
|
|
|
72,405
|
|
|
82,566
|
|
||||
Adjustments:
|
|
|
|
|
|
|
|
||||||||
Equity in earnings of WTLPG
|
(1,131
|
)
|
|
(853
|
)
|
|
(2,726
|
)
|
|
(1,758
|
)
|
||||
(Gain) loss on sale of property, plant and equipment
|
490
|
|
|
(15
|
)
|
|
492
|
|
|
140
|
|
||||
Unrealized mark-to-market on commodity derivatives
|
654
|
|
|
(200
|
)
|
|
500
|
|
|
(4,037
|
)
|
||||
Distributions from WTLPG
|
1,500
|
|
|
1,300
|
|
|
3,000
|
|
|
2,500
|
|
||||
Unit-based compensation
|
388
|
|
|
219
|
|
|
520
|
|
|
405
|
|
||||
Adjusted EBITDA
|
29,444
|
|
|
32,998
|
|
|
74,191
|
|
|
79,816
|
|
||||
Adjustments:
|
|
|
|
|
|
|
|
||||||||
Interest expense, net
|
(13,766
|
)
|
|
(11,219
|
)
|
|
(26,451
|
)
|
|
(22,139
|
)
|
||||
Income tax expense
|
(132
|
)
|
|
(13
|
)
|
|
(281
|
)
|
|
(193
|
)
|
||||
Amortization of debt premium
|
(76
|
)
|
|
(76
|
)
|
|
(153
|
)
|
|
(153
|
)
|
||||
Amortization of deferred debt issuance costs
|
870
|
|
|
724
|
|
|
1,689
|
|
|
1,445
|
|
||||
Payments for plant turnaround costs
|
—
|
|
|
(197
|
)
|
|
—
|
|
|
(1,591
|
)
|
||||
Maintenance capital expenditures
|
(5,370
|
)
|
|
(2,618
|
)
|
|
(11,372
|
)
|
|
(7,286
|
)
|
||||
Distributable Cash Flow
|
$
|
10,970
|
|
|
$
|
19,599
|
|
|
$
|
37,623
|
|
|
$
|
49,899
|
|