|
|
|
|
|
|
Delaware
|
|
001-35714
|
|
27-0005456
|
(State or other jurisdiction
of incorporation)
|
|
(Commission File Number)
|
|
(IRS Employer
Identification No.)
|
200 E. Hardin Street
Findlay, Ohio
|
|
45840
|
(Address of principal executive offices)
|
|
(Zip Code)
|
¨
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
¨
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
¨
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
¨
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
|
Emerging growth company
¨
|
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
¨
|
|
Item 1.01
|
Entry into a Material Definitive Agreement.
|
Item 2.01
|
Completion of Acquisition or Disposition of Assets.
|
Item 3.02
|
Unregistered Sales of Equity Securities.
|
Item 9.01
|
Financial Statements and Exhibits.
|
(a)
|
Financial Statements of businesses acquired
|
(b)
|
Pro forma financial information
|
(d)
|
Exhibits.
|
Exhibit Number
|
|
Description
|
|
|
|
|
|
|
|
||
|
||
|
||
|
||
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||
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||
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||
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||
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||
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||
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||
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||
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||
|
|
MPLX LP
|
|
|
|
|
|
|
|
By:
|
|
MPLX GP LLC, its General Partner
|
|
|
|
|
|
|
|
|
Date: September 1, 2017
|
By:
|
|
/s/ Pamela K.M. Beall
|
|
|
|
Name: Pamela K.M. Beall
|
|
|
|
Title: Executive Vice President and Chief Financial Officer
|
Exhibit Number
|
|
Description
|
|
|
|
|
|
|
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
MPC Investment LLC
|
|
|
|
By:
|
/s/ Gary R. Heminger
|
|
Gary R. Heminger
|
|
Chief Executive Officer
|
|
|
|
|
MPLX Logistics Holdings LLC
|
|
|
|
By:
|
/s/ Timothy T. Griffith
|
|
Timothy T. Griffith
|
|
Vice President
|
|
|
|
|
MPLX Holdings Inc.
|
|
|
|
By:
|
/s/ Timothy T. Griffith
|
|
Timothy T. Griffith
|
|
Vice President
|
|
|
|
|
MPLX LP
|
|
By:
|
MPLX GP LLC, its General Partner
|
|
|
By:
|
/s/ Michael J. Hennigan
|
|
Michael J. Hennigan
|
|
President
|
|
|
|
|
MPLX GP LLC
|
|
|
|
By:
|
/s/ Michael J. Hennigan
|
|
Michael J. Hennigan
|
|
President
|
|
|
MPLX Logistics Holdings LLC
|
|
MPLX LP
|
||
|
|
|
By:
|
MPLX GP LLC, its General Partner
|
|
|
|
|
|
By:
|
|
|
By:
|
|
|
|
|
|
|
Name:
|
Timothy T. Griffith
|
|
Name:
|
Michael J. Hennigan
|
|
|
|
|
|
Title:
|
Vice President
|
|
Title:
|
President
|
MPLX Holdings Inc.
|
|
MPLX LP
|
||
|
|
|
By:
|
MPLX GP LLC, its General Partner
|
|
|
|
|
|
By:
|
|
|
By:
|
|
|
|
|
|
|
Name:
|
Timothy T. Griffith
|
|
Name:
|
Michael J. Hennigan
|
|
|
|
|
|
Title:
|
Vice President
|
|
Title:
|
President
|
MPLX GP LLC
|
|
MPLX LP
|
||
|
|
|
By:
|
MPLX GP LLC, its General Partner
|
|
|
|
|
|
By:
|
|
|
By:
|
|
|
|
|
|
|
Name:
|
Michael J. Hennigan
|
|
Name:
|
Michael J. Hennigan
|
|
|
|
|
|
Title:
|
President
|
|
Title:
|
President
|
|
|
|
|
|
|
|
|
|
|
MPLX OPERATIONS LLC
|
|
|
|
|
|
By:
|
|
Pamela K.M. Beall
|
|
President
|
|
|
|
|
|
|
|
|
|
Member
|
Effective Date
|
Ownership of Membership Interest
|
MPL Investment LLC
|
03/26/2014
|
100%
|
Member
|
Effective Date
|
Ownership of Membership Interest
|
MPC Investment LLC
|
09/01/2017
|
100%
|
Member
|
Effective Date
|
Ownership of Membership Interest
|
MPLX GP LLC
|
09/01/2017
|
74.63%
|
MPLX Logistics Holdings LLC
|
09/01/2017
|
17.74%
|
MPLX Holdings Inc.
|
09/01/2017
|
7.63%
|
Member
|
Effective Date
|
Ownership of Membership Interest
|
MPLX LP
|
09/01/2017
|
100%
|
Member
|
Effective Date
|
Ownership of Membership Interest
|
MPLX Operations LLC
|
09/01/2017
|
100%
|
MPLX OPERATIONS LLC
|
|
|
|
|
|
By:
|
|
Pamela K.M. Beall
|
|
President
|
|
|
|
|
|
|
|
|
|
Member
|
Effective Date
|
Ownership of Membership Interest
|
Marathon Pipe Line LLC
|
03/27/2012
|
100%
|
Member
|
Effective Date
|
Ownership of Membership Interest
|
MPL Investment LLC
|
10/31/2012
|
100%
|
Member
|
Effective Date
|
Ownership of Membership Interest
|
MPC Investment LLC
|
09/01/2017
|
100%
|
Member
|
Effective Date
|
Ownership of Membership Interest
|
MPLX GP LLC
|
09/01/2017
|
74.63%
|
MPLX Logistics Holdings LLC
|
09/01/2017
|
17.74%
|
MPLX Holdings Inc.
|
09/01/2017
|
7.63%
|
Member
|
Effective Date
|
Ownership of Membership Interest
|
MPLX LP
|
09/01/2017
|
100%
|
Member
|
Effective Date
|
Ownership of Membership Interest
|
MPLX Operations LLC
|
09/01/2017
|
100%
|
Hardin Street Holdings LLC
|
|
MPL Investment LLC
|
||
|
|
|
|
|
By:
|
|
|
By:
|
|
|
|
|
|
|
Name:
|
Timothy T. Griffith
|
|
Name:
|
Donald C. Templin
|
|
|
|
|
|
Title:
|
Vice President
|
|
Title:
|
President
|
MPL Investment LLC
|
|
MPC Investment LLC
|
||
|
|
|
|
|
By:
|
|
|
By:
|
|
|
|
|
|
|
Name:
|
Donald C. Templin
|
|
Name:
|
Gary R. Heminger
|
|
|
|
|
|
Title:
|
President
|
|
Title:
|
Chief Executive Officer
|
MPLX Holdings Inc.
|
|
MPC Investment LLC
|
||
|
|
|
|
|
By:
|
|
|
By:
|
|
|
|
|
|
|
Name:
|
Timothy T. Griffith
|
|
Name:
|
Gary R. Heminger
|
|
|
|
|
|
Title:
|
Vice President
|
|
Title:
|
Chief Executive Officer
|
MPL Investment LLC
|
|
MPC Investment LLC
|
||
|
|
|
|
|
By:
|
|
|
By:
|
|
|
|
|
|
|
Name:
|
Donald C. Templin
|
|
Name:
|
Gary R. Heminger
|
|
|
|
|
|
Title:
|
President
|
|
Title:
|
Chief Executive Officer
|
MPL Investment LLC
|
|
MPC Investment LLC
|
||
|
|
|
|
|
By:
|
|
|
By:
|
|
|
|
|
|
|
Name:
|
Donald C. Templin
|
|
Name:
|
Gary R. Heminger
|
|
|
|
|
|
Title:
|
President
|
|
Title:
|
Chief Executive Officer
|
MPLX GP LLC
|
|
MPC Investment LLC
|
||
|
|
|
|
|
By:
|
|
|
By:
|
|
|
|
|
|
|
Name:
|
Michael J. Hennigan
|
|
Name:
|
Gary R. Heminger
|
|
|
|
|
|
Title:
|
President
|
|
Title:
|
Chief Executive Officer
|
MPLX Logistics Holdings LLC
|
|
MPC Investment LLC
|
||
|
|
|
|
|
By:
|
|
|
By:
|
|
|
|
|
|
|
Name:
|
Timothy T. Griffith
|
|
Name:
|
Gary R. Heminger
|
|
|
|
|
|
Title:
|
Vice President
|
|
Title:
|
Chief Executive Officer
|
|
|
|
|
|
/s/ KPMG LLP
|
New Orleans, Louisiana
September 1, 2017
|
|
|
|
|
|
|
|
/s/ KPMG LLP
|
New Orleans, Louisiana
September 1, 2017
|
|
|
|
|
|
|
|
/s/ KPMG LLP
|
Tulsa, Oklahoma
August 31, 2017
|
|
|
Assets
|
2016
|
|
2015
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
18,596,386
|
|
|
$
|
31,693,635
|
|
Accounts receivable - trade
|
45,440,008
|
|
|
44,882,065
|
|
||
Accounts receivable - affiliates
|
5,259,765
|
|
|
5,293,526
|
|
||
Income tax receivable
|
13,385,645
|
|
|
9,604,140
|
|
||
Unbilled revenue - trade
|
4,494,284
|
|
|
3,906,289
|
|
||
Unbilled revenue - affiliates
|
626,021
|
|
|
537,459
|
|
||
Warehouse stock inventory
|
13,682,895
|
|
|
11,225,399
|
|
||
Other current assets
|
19,491,762
|
|
|
10,464,295
|
|
||
Total current assets
|
120,976,766
|
|
|
117,606,808
|
|
||
Property, plant and equipment, at cost (note 3)
|
959,383,249
|
|
|
928,742,103
|
|
||
Accumulated depreciation
|
(434,118,872
|
)
|
|
(410,293,827
|
)
|
||
Net property, plant and equipment
|
525,264,377
|
|
|
518,448,276
|
|
||
Other non-current assets
|
15,045,230
|
|
|
25,509,495
|
|
||
Total assets
|
$
|
661,286,373
|
|
|
$
|
661,564,579
|
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable - trade
|
$
|
18,578,657
|
|
|
$
|
21,550,271
|
|
Accounts payable - affiliates
|
4,292,186
|
|
|
4,957,700
|
|
||
Income tax payable
|
316,502
|
|
|
1,099,150
|
|
||
Interest payable
|
3,903,184
|
|
|
4,309,790
|
|
||
Other current liabilities
|
18,741,112
|
|
|
11,913,313
|
|
||
Current maturities of long-term debt
|
264,804,047
|
|
|
14,768,571
|
|
||
Total current liabilities
|
310,635,688
|
|
|
58,598,795
|
|
||
|
|
|
|
||||
Long-term debt, less current maturities (note 4)
|
100,849,303
|
|
|
365,653,351
|
|
||
Deferred interest income
|
384,354
|
|
|
1,043,214
|
|
||
Deferred income taxes, net
|
86,932,491
|
|
|
83,830,386
|
|
||
Other non-current liabilities
|
22,690,347
|
|
|
35,836,994
|
|
||
Commitments and contingencies (note 8)
|
|
|
|
||||
Stockholders’ equity:
|
|
|
|
||||
Common stock, $1 par value per share; 21,920 authorized and
|
|
|
|
||||
issued as of December 31, 2016 and 2015
|
21,920
|
|
|
21,920
|
|
||
Accumulated other comprehensive loss
|
(4,696,953
|
)
|
|
(5,352,971
|
)
|
||
Retained earnings
|
144,469,223
|
|
|
121,932,890
|
|
||
Total stockholders' equity
|
139,794,190
|
|
|
116,601,839
|
|
||
Total liabilities and stockholders' equity
|
$
|
661,286,373
|
|
|
$
|
661,564,579
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Revenues:
|
|
|
|
|
|
||||||
Transportation revenue
|
$
|
402,546,501
|
|
|
$
|
360,146,341
|
|
|
$
|
326,360,450
|
|
Allowance oil revenue
|
6,563,733
|
|
|
7,171,371
|
|
|
11,663,270
|
|
|||
Storage revenue
|
2,282,060
|
|
|
3,755,430
|
|
|
1,741,029
|
|
|||
Blending revenue
|
4,563,596
|
|
|
2,452,352
|
|
|
—
|
|
|||
Other income
|
4,294,321
|
|
|
4,213,803
|
|
|
2,700,323
|
|
|||
Total revenues
|
420,250,211
|
|
|
377,739,297
|
|
|
342,465,072
|
|
|||
Operating expenses:
|
|
|
|
|
|
||||||
Operations and maintenance
|
104,500,254
|
|
|
104,501,207
|
|
|
120,521,479
|
|
|||
General and administrative
|
36,485,058
|
|
|
36,542,516
|
|
|
35,949,800
|
|
|||
Taxes, other than income taxes
|
10,423,214
|
|
|
10,615,306
|
|
|
9,289,983
|
|
|||
Depreciation
|
24,149,067
|
|
|
22,061,965
|
|
|
22,348,409
|
|
|||
Interest expense
|
20,611,708
|
|
|
19,674,013
|
|
|
21,008,791
|
|
|||
Total operating expenses
|
196,169,301
|
|
|
193,395,007
|
|
|
209,118,462
|
|
|||
Miscellaneous charges and credits
|
4,448,553
|
|
|
—
|
|
|
—
|
|
|||
Income before income taxes
|
228,529,463
|
|
|
184,344,290
|
|
|
133,346,610
|
|
|||
Income taxes: (note 5)
|
|
|
|
|
|
||||||
Current income taxes
|
81,062,559
|
|
|
63,235,256
|
|
|
47,162,926
|
|
|||
Deferred income taxes
|
2,573,131
|
|
|
3,988,336
|
|
|
1,526,232
|
|
|||
Total income taxes
|
83,635,690
|
|
|
67,223,592
|
|
|
48,689,158
|
|
|||
Net income
|
144,893,773
|
|
|
117,120,698
|
|
|
84,657,452
|
|
|||
Retained earnings, beginning of year
|
121,932,890
|
|
|
119,234,592
|
|
|
91,393,780
|
|
|||
Retained earnings, available
|
266,826,663
|
|
|
236,355,290
|
|
|
176,051,232
|
|
|||
Less: dividends paid
|
(122,357,440
|
)
|
|
(114,422,400
|
)
|
|
(56,816,640
|
)
|
|||
Retained earnings, end of year
|
$
|
144,469,223
|
|
|
$
|
121,932,890
|
|
|
$
|
119,234,592
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Net income
|
$
|
144,893,773
|
|
|
$
|
117,120,698
|
|
|
$
|
84,657,452
|
|
Other comprehensive gain (loss), net of tax:
|
|
|
|
|
|
||||||
Pension and other postretirement benefits
|
656,018
|
|
|
3,627,804
|
|
|
(4,481,751
|
)
|
|||
Comprehensive income
|
$
|
145,549,791
|
|
|
$
|
120,748,502
|
|
|
$
|
80,175,701
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Cash from operating activities
|
|
|
|
|
|
||||||
Net income
|
$
|
144,893,773
|
|
|
$
|
117,120,698
|
|
|
$
|
84,657,452
|
|
Reconciliation of net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation
|
24,149,067
|
|
|
22,061,966
|
|
|
22,348,409
|
|
|||
Amortization of debt issuance cost
|
345,065
|
|
|
365,237
|
|
|
375,993
|
|
|||
Gain on the sale of assets
|
(117,883
|
)
|
|
—
|
|
|
—
|
|
|||
Deferred income taxes
|
2,573,131
|
|
|
3,988,336
|
|
|
1,526,232
|
|
|||
Pension plan expense
|
2,785,216
|
|
|
2,748,892
|
|
|
2,562,713
|
|
|||
Post retirement medical plan expense
|
564,542
|
|
|
942,863
|
|
|
741,646
|
|
|||
Changes in assets & liabilities:
|
|
|
|
|
|
||||||
(Increase) decrease in accounts receivable
|
(1,200,739
|
)
|
|
6,929,119
|
|
|
(3,739,297
|
)
|
|||
(Increase) in inventories
|
(2,457,496
|
)
|
|
(968,055
|
)
|
|
(1,098,806
|
)
|
|||
(Increase) in income taxes
|
(4,564,153
|
)
|
|
(4,359,339
|
)
|
|
5,347,649
|
|
|||
(Increase) decrease in other assets
|
1,436,798
|
|
|
(9,599,865
|
)
|
|
6,618,289
|
|
|||
Increase (decrease) in accounts payable & accrued liabilities
|
9,266,155
|
|
|
(16,061,903
|
)
|
|
(19,673,796
|
)
|
|||
Minimum pension liability - employer contributions
|
1,285,000
|
|
|
1,621,000
|
|
|
1,160,000
|
|
|||
Increase (decrease) in other liabilities
|
(17,255,273
|
)
|
|
2,373,069
|
|
|
1,966,976
|
|
|||
Net cash provided by operating activities
|
161,703,203
|
|
|
127,162,018
|
|
|
102,793,460
|
|
|||
|
|
|
|
|
|
||||||
Cash from investing activities:
|
|
|
|
|
|
||||||
Purchases of property and equipment
|
(41,207,746
|
)
|
|
(60,569,387
|
)
|
|
(48,206,323
|
)
|
|||
Proceeds from sale of property and equipment
|
3,878,371
|
|
|
119,946
|
|
|
123,442
|
|
|||
Net cash used in investing activities
|
(37,329,375
|
)
|
|
(60,449,441
|
)
|
|
(48,082,881
|
)
|
|||
Cash from financing activities:
|
|
|
|
|
|
||||||
Proceeds from borrowings
|
—
|
|
|
63,000,000
|
|
|
12,000,000
|
|
|||
Payments on debt
|
(15,113,637
|
)
|
|
(16,363,636
|
)
|
|
(16,363,636
|
)
|
|||
Dividends paid
|
(122,357,440
|
)
|
|
(114,422,400
|
)
|
|
(56,816,640
|
)
|
|||
Net cash used in financing activities
|
(137,471,077
|
)
|
|
(67,786,036
|
)
|
|
(61,180,276
|
)
|
|||
Net decrease in cash and cash equivalents
|
(13,097,249
|
)
|
|
(1,073,459
|
)
|
|
(6,469,697
|
)
|
|||
Cash and cash equivalents, beginning of period
|
31,693,635
|
|
|
32,767,094
|
|
|
39,236,791
|
|
|||
Cash and cash equivalents, end of period
|
$
|
18,596,386
|
|
|
$
|
31,693,635
|
|
|
$
|
32,767,094
|
|
Supplemental cash flows:
|
|
|
|
|
|
||||||
Capitalized interest
|
$
|
443,881
|
|
|
$
|
600,547
|
|
|
$
|
—
|
|
Capital expenditures included in accrued and accounts payable
|
$
|
1,260,969
|
|
|
$
|
7,743,059
|
|
|
$
|
2,248,709
|
|
Cash paid for interest
|
$
|
20,165,306
|
|
|
$
|
19,866,197
|
|
|
$
|
21,275,369
|
|
Cash paid for income taxes
|
$
|
93,337,294
|
|
|
$
|
67,880,968
|
|
|
$
|
41,627,274
|
|
|
|
|
|
|
|
||||||
Impact of pension accounting:
|
|
|
|
|
|
||||||
Decrease in other current liabilities and other non-current liabilities
|
$
|
1,184,992
|
|
|
$
|
5,804,487
|
|
|
$
|
7,170,802
|
|
Decrease to accumulated other comprehensive loss
|
$
|
656,018
|
|
|
$
|
3,627,804
|
|
|
$
|
4,481,751
|
|
Decrease to deferred income tax liability
|
$
|
528,974
|
|
|
$
|
2,176,683
|
|
|
$
|
2,689,051
|
|
|
2016
|
|
2015
|
||||||||
Shares
|
|
Percentage
|
|
Shares
|
|
Percentage
|
|||||
EXPL Pipeline Investment LLC
|
—
|
|
|
—
|
|
|
1,490
|
|
6.80
|
%
|
|
Phillips 66 Partners Holdings LLC
|
4,809
|
|
21.94
|
%
|
|
4,265
|
|
19.45
|
%
|
||
Shell Pipeline Company LP
|
7,885
|
|
35.97
|
%
|
|
7,885
|
|
35.97
|
%
|
||
Shell Midstream Partners, L.P.
|
575
|
|
2.62
|
%
|
|
—
|
|
|
—
|
|
|
MPL Investment LLC
|
5,372
|
|
24.51
|
%
|
|
5,372
|
|
24.51
|
%
|
||
Sunoco Pipeline L.P.
|
3,279
|
|
14.96
|
%
|
|
2,908
|
|
13.27
|
%
|
||
Total shares authorized and issued
|
21,920
|
|
100.00
|
%
|
|
21,920
|
|
100.00
|
%
|
|
2016
|
|
2015
|
||||
Land
|
$
|
7,539,036
|
|
|
$
|
9,822,408
|
|
Right-of-way
|
26,161,459
|
|
|
23,200,719
|
|
||
Line pipe and fittings
|
478,297,504
|
|
|
385,655,662
|
|
||
Buildings
|
19,784,720
|
|
|
19,163,011
|
|
||
Tanks, pumping and station equipment
|
370,230,120
|
|
|
350,175,808
|
|
||
Office furniture, vehicles and other
|
38,176,984
|
|
|
36,333,585
|
|
||
Noncarrier property
|
277,306
|
|
|
277,306
|
|
||
Construction in progress
|
18,916,120
|
|
|
104,113,604
|
|
||
|
$
|
959,383,249
|
|
|
$
|
928,742,103
|
|
|
K
|
|
L
|
|
O
|
|
Advancing Term
|
|
Total
|
||||||||||
2017
|
$
|
4,545,455
|
|
|
$
|
6,818,181
|
|
|
$
|
250,000,000
|
|
|
3,750,000
|
|
|
$
|
265,113,636
|
|
|
2018
|
—
|
|
|
6,818,182
|
|
|
—
|
|
|
3,750,000
|
|
|
10,568,182
|
|
|||||
2019
|
—
|
|
|
6,818,182
|
|
|
—
|
|
|
63,750,000
|
|
|
70,568,182
|
|
|||||
2020
|
—
|
|
|
6,818,182
|
|
|
—
|
|
|
—
|
|
|
6,818,182
|
|
|||||
2021
|
—
|
|
|
6,818,182
|
|
|
—
|
|
|
—
|
|
|
6,818,182
|
|
|||||
Thereafter
|
—
|
|
|
6,818,182
|
|
|
—
|
|
|
—
|
|
|
6,818,182
|
|
|||||
Less deferred debt issuance cost
|
(10,683
|
)
|
|
(907,319
|
)
|
|
(133,194
|
)
|
|
—
|
|
|
(1,051,195
|
)
|
|||||
|
$
|
4,534,772
|
|
|
$
|
40,001,772
|
|
|
$
|
249,866,806
|
|
|
$
|
71,250,000
|
|
|
$
|
365,653,351
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Less current maturities:
|
4,534,772
|
|
|
6,652,469
|
|
|
249,866,806
|
|
|
3,750,000
|
|
|
264,804,047
|
|
|||||
Long-term debt
|
$
|
—
|
|
|
$
|
33,349,303
|
|
|
$
|
—
|
|
|
$
|
67,500,000
|
|
|
$
|
100,849,303
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Current:
|
|
|
|
|
|
||||||
Federal
|
$
|
76,013,004
|
|
|
$
|
58,384,443
|
|
|
$
|
43,379,628
|
|
State
|
5,049,555
|
|
|
4,850,813
|
|
|
3,783,298
|
|
|||
|
81,062,559
|
|
|
63,235,256
|
|
|
47,162,926
|
|
|||
Deferred:
|
|
|
|
|
|
||||||
Federal
|
2,367,135
|
|
|
3,799,726
|
|
|
1,410,099
|
|
|||
State
|
205,996
|
|
|
188,610
|
|
|
116,133
|
|
|||
|
2,573,131
|
|
|
3,988,336
|
|
|
1,526,232
|
|
|||
|
$
|
83,635,690
|
|
|
$
|
67,223,592
|
|
|
$
|
48,689,158
|
|
2017
|
$
|
813,463
|
|
2018
|
813,463
|
|
|
2019
|
813,463
|
|
|
2020
|
813,463
|
|
|
2021
|
406,731
|
|
|
Pension Benefits
|
|
Postretirement Benefits
|
||||||||||||
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||||||
Projected benefit obligation
|
$
|
(39,101,234
|
)
|
|
$
|
(35,762,241
|
)
|
|
$
|
(9,855,769
|
)
|
|
$
|
(11,286,975
|
)
|
Fair value of plan assets
|
33,503,641
|
|
|
30,995,776
|
|
|
—
|
|
|
—
|
|
||||
Funded status
|
$
|
(5,597,593
|
)
|
|
$
|
(4,766,465
|
)
|
|
$
|
(9,855,769
|
)
|
|
$
|
(11,286,975
|
)
|
Accrued benefit cost
|
$
|
(5,597,593
|
)
|
|
$
|
(4,766,465
|
)
|
|
$
|
(9,855,769
|
)
|
|
$
|
(11,286,975
|
)
|
|
Pension benefits
|
|
Postretirement benefits
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net periodic benefit cost (gain) recognized
|
$
|
2,088,009
|
|
|
$
|
2,199,310
|
|
|
$
|
(16,762
|
)
|
|
$
|
1,354,783
|
|
Other changes in plan assets and benefit obligations:
|
|
|
|
|
|
|
|
||||||||
Net actuarial loss/(gain)
|
1,162,605
|
|
|
774,064
|
|
|
(1,995,748
|
)
|
|
(1,525,444
|
)
|
||||
Amortization of net (loss)/gain
|
(1,134,486
|
)
|
|
(1,220,024
|
)
|
|
3,055
|
|
|
(33,880
|
)
|
||||
Prior service cost
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,474,046
|
)
|
||||
Amortization of prior service cost
|
—
|
|
|
—
|
|
|
813,463
|
|
|
—
|
|
||||
Curtailment
|
—
|
|
|
—
|
|
|
—
|
|
|
(151,922
|
)
|
||||
Total recognized in accumulated other
comprehensive income (loss)
|
28,119
|
|
|
(445,960
|
)
|
|
(1,179,230
|
)
|
|
(6,185,292
|
)
|
||||
Total recognized in net periodic benefit
cost and accumulated other comprehensive income (loss)
|
$
|
2,116,128
|
|
|
$
|
1,753,350
|
|
|
$
|
(1,195,992
|
)
|
|
$
|
(4,830,509
|
)
|
|
Pension benefits
|
|
Postretirement benefits
|
||||||||
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||
Discount rate
|
3.80
|
%
|
|
3.91
|
%
|
|
4.09
|
%
|
|
4.30
|
%
|
Rate of compensation increase
|
3.00
|
%
|
|
3.00
|
%
|
|
3.00
|
%
|
|
3.00
|
%
|
|
Pension benefits
|
|
Postretirement benefits
|
||||||||
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||
Discount rate
|
3.91
|
%
|
|
3.64
|
%
|
|
4.30
|
%
|
|
3.94
|
%
|
Expected long-term rate of return on plan assets
|
6.00
|
%
|
|
6.00
|
%
|
|
—
|
|
|
—
|
|
Rate of compensation increase
|
3.00
|
%
|
|
3.00
|
%
|
|
3.00
|
%
|
|
3.00
|
%
|
|
Pension benefits
|
|
Postretirement benefits
|
||||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2016
|
|
2015
|
|
2014
|
||||||||||||
Benefit cost
|
$
|
2,088,009
|
|
|
$
|
2,199,310
|
|
|
$
|
1,808,664
|
|
|
$
|
(16,762
|
)
|
|
$
|
1,354,783
|
|
|
$
|
1,153,777
|
|
Benefits paid
|
1,441,697
|
|
|
2,582,378
|
|
|
1,529,838
|
|
|
235,214
|
|
|
378,040
|
|
|
395,338
|
|
||||||
Employer contributions
|
1,285,000
|
|
|
1,621,000
|
|
|
1,160,000
|
|
|
235,214
|
|
|
378,040
|
|
|
395,338
|
|
|
Pension benefits - Plan assets
|
||||||||||||||
|
|
|
Fair value measurements at December 31, 2016
|
||||||||||||
|
|
|
Quoted prices in active markets for identical assets
|
|
Significant observable inputs
|
|
Significant unobservable inputs
|
||||||||
|
Total
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
||||||||
Asset category:
|
|
|
|
|
|
|
|
||||||||
Cash
|
$
|
8,414,878
|
|
|
$
|
8,414,878
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Mutual funds:
|
|
|
|
|
|
|
|
||||||||
U.S. equity
|
14,925,145
|
|
|
14,925,145
|
|
|
—
|
|
|
—
|
|
||||
International equity
|
1,688,918
|
|
|
1,688,918
|
|
|
—
|
|
|
—
|
|
||||
Bond funds
|
8,474,700
|
|
|
8,474,700
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
33,503,641
|
|
|
$
|
33,503,641
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Pension benefits - Plan assets
|
||||||||||||||
|
|
|
Fair value measurements at December 31, 2015
|
||||||||||||
|
|
|
Quoted prices in active markets for identical assets
|
|
Significant observable inputs
|
|
Significant unobservable inputs
|
||||||||
|
Total
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
||||||||
Asset category:
|
|
|
|
|
|
|
|
||||||||
Cash
|
$
|
7,672,283
|
|
|
$
|
7,672,283
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Mutual funds:
|
|
|
|
|
|
|
|
||||||||
U.S. equity
|
14,094,995
|
|
|
14,094,995
|
|
|
—
|
|
|
—
|
|
||||
International equity
|
1,567,436
|
|
|
1,567,436
|
|
|
—
|
|
|
—
|
|
||||
Bond funds
|
7,661,062
|
|
|
7,661,062
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
30,995,776
|
|
|
$
|
30,995,776
|
|
|
$
|
—
|
|
|
$
|
—
|
|
2017
|
$
|
3,813,672
|
|
2018
|
2,960,674
|
|
|
2019
|
2,893,371
|
|
|
2020
|
3,450,844
|
|
|
2021
|
3,514,755
|
|
|
Thereafter
|
16,853,018
|
|
2017
|
$
|
4,605,450
|
|
2018
|
4,628,453
|
|
|
2019
|
4,652,492
|
|
|
2020
|
4,675,516
|
|
|
2021
|
4,699,577
|
|
|
Thereafter
|
9,046,768
|
|
|
June 30,
|
|
December 31,
|
||||
|
2017
|
|
2016
|
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
20,470,083
|
|
|
$
|
18,596,386
|
|
Accounts receivable - trade
|
43,359,262
|
|
|
45,440,008
|
|
||
Accounts receivable - affiliates
|
4,268,561
|
|
|
5,259,765
|
|
||
Income tax receivable
|
28,012,051
|
|
|
13,385,645
|
|
||
Unbilled revenue - trade
|
4,688,464
|
|
|
4,494,284
|
|
||
Unbilled revenue - affiliates
|
431,842
|
|
|
626,021
|
|
||
Warehouse stock inventory
|
13,565,946
|
|
|
13,682,895
|
|
||
Other current assets
|
19,613,748
|
|
|
19,491,762
|
|
||
Total current assets
|
134,409,957
|
|
|
120,976,766
|
|
||
Property, plant and equipment, at cost (note 3)
|
973,371,888
|
|
|
959,383,249
|
|
||
Accumulated depreciation
|
(446,684,898
|
)
|
|
(434,118,872
|
)
|
||
Net property, plant and equipment
|
526,686,990
|
|
|
525,264,377
|
|
||
Other non-current assets
|
14,995,678
|
|
|
15,045,230
|
|
||
Total assets
|
$
|
676,092,625
|
|
|
$
|
661,286,373
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable - trade
|
$
|
16,356,790
|
|
|
$
|
18,578,657
|
|
Accounts payable - affiliates
|
1,507,605
|
|
|
4,292,186
|
|
||
Income tax payable
|
—
|
|
|
316,502
|
|
||
Interest payable
|
3,900,120
|
|
|
3,903,184
|
|
||
Other current liabilities
|
23,608,013
|
|
|
18,741,112
|
|
||
Current maturities of long-term debt
|
264,893,723
|
|
|
264,804,047
|
|
||
Total current liabilities
|
310,266,251
|
|
|
310,635,688
|
|
||
Long-term debt, less current maturities (note 4)
|
99,057,159
|
|
|
100,849,303
|
|
||
Deferred interest income
|
54,924
|
|
|
384,354
|
|
||
Deferred income taxes, net
|
96,957,371
|
|
|
86,932,491
|
|
||
Other non-current liabilities
|
22,737,476
|
|
|
22,690,347
|
|
||
Commitments and contingencies (note 6)
|
|
|
|
||||
Stockholders’ equity:
|
|
|
|
||||
Common stock, $1 par value per share; 21,920 authorized and
|
|
|
|
||||
issued as of June 30, 2017 and December 31, 2016
|
21,920
|
|
|
21,920
|
|
||
Accumulated other comprehensive loss
|
(4,696,953
|
)
|
|
(4,696,953
|
)
|
||
Retained earnings
|
151,694,477
|
|
|
144,469,223
|
|
||
Total stockholders' equity
|
147,019,444
|
|
|
139,794,190
|
|
||
Total liabilities and stockholders' equity
|
$
|
676,092,625
|
|
|
$
|
661,286,373
|
|
|
Six months ended
|
||
|
June 30, 2017
|
|
June 30, 2016
|
Revenues:
|
|
|
|
Transportation revenue
|
$ 189,377,519
|
|
$ 195,879,117
|
Allowance oil revenue
|
3,531,144
|
|
2,865,872
|
Storage revenue
|
1,525,500
|
|
1,254,560
|
Blending revenue
|
1,907,222
|
|
1,449,545
|
Other income
|
1,880,372
|
|
2,239,987
|
Total revenues
|
198,221,757
|
|
203,689,081
|
Operating expenses:
|
|
|
|
Operations and maintenance
|
43,793,900
|
|
49,972,523
|
General and administrative
|
19,146,203
|
|
18,703,932
|
Taxes, other than income taxes
|
6,004,775
|
|
5,697,051
|
Depreciation
|
12,818,278
|
|
11,564,976
|
Interest expense
|
10,150,493
|
|
10,383,262
|
Total operating expenses
|
91,913,649
|
|
96,321,744
|
Income before income taxes
|
106,308,108
|
|
107,367,337
|
Income taxes:
|
|
|
|
Current income taxes (note 5)
|
29,062,934
|
|
38,243,802
|
Deferred income taxes (note 5)
|
10,024,880
|
|
1,213,955
|
Total income taxes
|
39,087,814
|
|
39,457,757
|
Net income
|
67,220,294
|
|
67,909,580
|
Retained earnings, beginning of period
|
144,469,223
|
|
121,932,890
|
Retained earnings, available
|
211,689,517
|
|
189,842,470
|
Less: dividends paid
|
(59,995,040)
|
|
(55,391,840)
|
Retained earnings, end of period
|
$ 151,694,477
|
|
$ 134,450,630
|
|
Six Months Ended
June 30,
|
||||||
|
2017
|
|
2016
|
||||
Net income
|
$
|
67,220,294
|
|
|
$
|
67,909,580
|
|
Other comprehensive gain, net of tax:
|
|
|
|
||||
Pension and other postretirement benefits
|
—
|
|
|
—
|
|
||
Comprehensive income
|
$
|
67,220,294
|
|
|
$
|
67,909,580
|
|
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
Cash from operating activities
|
2017
|
|
2016
|
||||
Net income
|
$
|
67,220,294
|
|
|
$
|
67,909,580
|
|
Reconciliation of net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation
|
12,818,278
|
|
|
11,564,976
|
|
||
Amortization of debt issuance cost
|
172,532
|
|
|
172,532
|
|
||
Deferred income taxes
|
10,024,880
|
|
|
1,213,955
|
|
||
Changes in assets & liabilities:
|
|
|
|
||||
(Increase) decrease in accounts receivable
|
3,071,949
|
|
|
(12,647,655
|
)
|
||
(Increase) decrease in inventories
|
116,949
|
|
|
(341,188
|
)
|
||
(Increase) decrease in income taxes
|
(14,942,908
|
)
|
|
2,346,579
|
|
||
(Increase) decrease in other assets
|
(72,434
|
)
|
|
699,145
|
|
||
Increase (decrease) in accounts payable & accrued liabilities
|
(142,611
|
)
|
|
2,136,390
|
|
||
Increase (decrease) in other liabilities
|
(282,301
|
)
|
|
1,019,840
|
|
||
Net cash provided by operating activities
|
77,984,628
|
|
|
74,074,154
|
|
||
|
|
|
|
||||
Cash from investing activities:
|
|
|
|
||||
Purchases of property and equipment
|
(14,551,460
|
)
|
|
(22,130,210
|
)
|
||
Proceeds from sale of property and equipment
|
310,569
|
|
|
447,506
|
|
||
Net cash used in investing activities
|
(14,240,891
|
)
|
|
(21,682,704
|
)
|
||
Cash from financing activities:
|
|
|
|
||||
Payments on debt
|
(1,875,000
|
)
|
|
(1,875,000
|
)
|
||
Dividends paid
|
(59,995,040
|
)
|
|
(55,391,840
|
)
|
||
Net cash used in financing activities
|
(61,870,040
|
)
|
|
(57,266,840
|
)
|
||
Net increase (decrease) in cash and cash equivalents
|
1,873,697
|
|
|
(4,875,390
|
)
|
||
Cash and cash equivalents, beginning of period
|
18,596,386
|
|
|
31,693,635
|
|
||
Cash and cash equivalents, end of period
|
$
|
20,470,083
|
|
|
$
|
26,818,245
|
|
|
|
|
|
||||
Supplemental cash flows:
|
|
|
|
||||
Capitalized interest
|
$
|
—
|
|
|
$
|
443,881
|
|
Capital expenditures included in accrued and accounts payable
|
$
|
380,832
|
|
|
$
|
1,885,825
|
|
Cash paid for interest
|
$
|
8,119,269
|
|
|
$
|
7,793,290
|
|
Cash paid for income taxes
|
$
|
27,528,170
|
|
|
$
|
6,572,858
|
|
|
The Company’s stockholders at June 30, 2017:
|
|
|
|
||
|
|
|
|
|
||
|
|
Shares
|
|
Percentage
|
||
|
Phillips 66 Partners Holdings LLC
|
4,809
|
|
|
21.94
|
%
|
|
Shell Pipeline Company LP
|
7,885
|
|
|
35.97
|
%
|
|
Shell Midstream Partners, L.P.
|
575
|
|
|
2.62
|
%
|
|
MPL Investment LLC
|
5,372
|
|
|
24.51
|
%
|
|
Sunoco Pipeline L.P.
|
3,279
|
|
|
14.96
|
%
|
|
Total shares authorized and issued
|
21,920
|
|
|
100.00
|
%
|
|
June 30,
|
|
December 31,
|
||||
|
2017
|
|
2016
|
||||
Land
|
$
|
7,539,036
|
|
|
$
|
7,539,036
|
|
Right-of-way
|
26,193,442
|
|
|
26,161,459
|
|
||
Line pipe and fittings
|
482,430,205
|
|
|
478,297,504
|
|
||
Buildings
|
19,822,122
|
|
|
19,784,720
|
|
||
Tanks, pumping and station equipment
|
375,802,171
|
|
|
370,230,120
|
|
||
Office furniture, vehicles and other
|
39,573,034
|
|
|
38,176,984
|
|
||
Noncarrier property
|
277,306
|
|
|
277,306
|
|
||
Construction in progress
|
21,734,572
|
|
|
18,916,120
|
|
||
|
$
|
973,371,888
|
|
|
$
|
959,383,249
|
|
|
K
|
|
L
|
|
O
|
|
Advancing
Term
|
|
Total
|
||||||||||
2017
|
$
|
4,545,455
|
|
|
$
|
6,818,181
|
|
|
$
|
250,000,000
|
|
|
$
|
1,875,000
|
|
|
$
|
263,238,636
|
|
2018
|
—
|
|
|
6,818,182
|
|
|
—
|
|
|
3,750,000
|
|
|
10,568,182
|
|
|||||
2019
|
—
|
|
|
6,818,182
|
|
|
—
|
|
|
63,750,000
|
|
|
70,568,182
|
|
|||||
2020
|
—
|
|
|
6,818,182
|
|
|
—
|
|
|
—
|
|
|
6,818,182
|
|
|||||
2021
|
—
|
|
|
6,818,182
|
|
|
—
|
|
|
—
|
|
|
6,818,182
|
|
|||||
Thereafter
|
—
|
|
|
6,818,182
|
|
|
—
|
|
|
—
|
|
|
6,818,182
|
|
|||||
Less deferred debt issuance cost
|
(881
|
)
|
|
(824,463
|
)
|
|
(53,320
|
)
|
|
—
|
|
|
(878,664
|
)
|
|||||
|
$
|
4,544,574
|
|
|
$
|
40,084,628
|
|
|
$
|
249,946,680
|
|
|
$
|
69,375,000
|
|
|
$
|
363,950,882
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Less current maturities:
|
4,544,574
|
|
|
6,652,469
|
|
|
249,946,680
|
|
|
3,750,000
|
|
|
264,893,723
|
|
|||||
Long-term debt
|
$
|
—
|
|
|
$
|
33,432,159
|
|
|
$
|
—
|
|
|
$
|
65,625,000
|
|
|
$
|
99,057,159
|
|
|
Page(s)
|
Report of Independent Auditors
.....................................................................................................................
|
1
|
Financial Statements
|
|
Statements of Income (Loss) ...............................................................................................................................
|
2
|
Statements of Cash Flows....................................................................................................................................
|
3
|
Statements of Financial Position .........................................................................................................................
|
4
|
Statements of Members’ Equity ..........................................................................................................................
|
5
|
Notes to Financial Statements .............................................................................................................................
|
6
|
|
For the year ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
|
(in thousands)
|
||||||||||
Operating revenues:
|
|
|
|
|
|
||||||
Operating revenue - affiliate................................
|
$
|
109,988
|
|
|
$
|
3,972
|
|
|
$
|
—
|
|
Operating revenue................................................
|
4,940
|
|
|
—
|
|
|
—
|
|
|||
|
114,928
|
|
|
3,972
|
|
|
—
|
|
|||
Operating expenses :
|
|
|
|
|
|
||||||
Operating and administrative..............................
|
$
|
2,059
|
|
|
$
|
207
|
|
|
$
|
8
|
|
Operating and administrative - affiliate..............
|
9,346
|
|
|
1,077
|
|
|
—
|
|
|||
Depreciation and amortization............................
|
28,352
|
|
|
1,496
|
|
|
—
|
|
|||
|
39,757
|
|
|
2,780
|
|
|
8
|
|
|||
Net income (loss )....................................................
|
$
|
75,171
|
|
|
$
|
1,192
|
|
|
$
|
(8
|
)
|
|
For the year ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
|
(in thousands)
|
||||||||||
Cash provided by (used in) operating activities:
|
|
|
|
|
|
||||||
Net income (loss).......................................................................
|
$
|
75,171
|
|
|
$
|
1,192
|
|
|
$
|
(8
|
)
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization ..............................................
|
28,352
|
|
|
1,496
|
|
|
—
|
|
|||
Loss on sale of asset ..............................................................
|
294
|
|
|
—
|
|
|
—
|
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||||||
Receivables, trade and other..............................................
|
(1,055
|
)
|
|
—
|
|
|
—
|
|
|||
Due from affiliates ............................................................
|
(4,297
|
)
|
|
(3,972
|
)
|
|
—
|
|
|||
Other current assets ..........................................................
|
(105
|
)
|
|
—
|
|
|
—
|
|
|||
Other assets .......................................................................
|
(1,103
|
)
|
|
—
|
|
|
—
|
|
|||
Due to affiliates ................................................................
|
1,244
|
|
|
76
|
|
|
—
|
|
|||
Accounts payable and other ..............................................
|
404
|
|
|
—
|
|
|
—
|
|
|||
Deferred revenue...............................................................
|
2,886
|
|
|
—
|
|
|
—
|
|
|||
Property and other taxes payable.......................................
|
(1,505
|
)
|
|
—
|
|
|
—
|
|
|||
Net cash provided by (used in) operating activities ........................
|
100,286
|
|
|
(1,208
|
)
|
|
(8
|
)
|
|||
Cash used in investing activities:
|
|
|
|
|
|
||||||
Additions to property, plant and equipment (Note 8).................
|
(138,492
|
)
|
|
(462,971
|
)
|
|
(169,500
|
)
|
|||
Proceeds from sale of asset.........................................................
|
665
|
|
|
—
|
|
|
—
|
|
|||
Other.............................................................................................
|
39
|
|
|
(37
|
)
|
|
—
|
|
|||
Net cash used in investing activities ...............................................
|
(137,788
|
)
|
|
(463,008
|
)
|
|
(169,500
|
)
|
|||
Cash provided by financing activities:
|
|
|
|
|
|
||||||
Borrowings from affiliates .........................................................
|
—
|
|
|
—
|
|
|
84,710
|
|
|||
Repayments to affiliates .............................................................
|
—
|
|
|
—
|
|
|
(116,005
|
)
|
|||
Contributions by members .........................................................
|
92,889
|
|
|
420,482
|
|
|
305,588
|
|
|||
Distributions to members ...........................................................
|
(88,920
|
)
|
|
—
|
|
|
—
|
|
|||
Net cash provided by financing activities .......................................
|
3,969
|
|
|
420,482
|
|
|
274,293
|
|
|||
|
|
|
|
|
|
||||||
Net (decrease) increase in cash and cash equivalents .....................
|
(33,533
|
)
|
|
(43,734
|
)
|
|
104,785
|
|
|||
Cash and cash equivalents at beginning of period...........................
|
61,051
|
|
|
104,785
|
|
|
—
|
|
|||
Cash and cash equivalents at end of period.....................................
|
$
|
27,518
|
|
|
$
|
61,051
|
|
|
$
|
104,785
|
|
|
As of December 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(in thousands)
|
||||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents ...............................................................
|
$
|
27,518
|
|
|
$
|
61,051
|
|
Receivables, trade and other.............................................................
|
1,055
|
|
|
—
|
|
||
Due from affiliates (Note 7)..............................................................
|
9,758
|
|
|
5,461
|
|
||
Other current assets ..........................................................................
|
123
|
|
|
57
|
|
||
|
38,454
|
|
|
66,569
|
|
||
Property, plant and equipment, net (Note 4)............................................
|
812,894
|
|
|
790,649
|
|
||
Other assets .............................................................................................
|
1,103
|
|
|
—
|
|
||
|
$
|
852,451
|
|
|
$
|
857,218
|
|
LIABILITIES AND MEMBERS' EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Due to affiliates (Note 7)..................................................................
|
$
|
1,320
|
|
|
$
|
33,453
|
|
Accounts payable and other (Note 5)...............................................
|
3,407
|
|
|
56,562
|
|
||
Property and other taxes payable......................................................
|
439
|
|
|
1,944
|
|
||
|
5,166
|
|
|
91,959
|
|
||
Deferred Revenue...................................................................................
|
1,880
|
|
|
—
|
|
||
Deferred Revenue - affiliate...................................................................
|
1,006
|
|
|
—
|
|
||
|
8,052
|
|
|
91,959
|
|
||
Members' equity (856,958,838 units and 764,070,051 units as of
|
|
|
|
||||
December 31, 2016 and December 31, 2015, respectively)...................
|
844,399
|
|
|
765,259
|
|
||
|
$
|
852,451
|
|
|
$
|
857,218
|
|
|
Enbridge Energy Company, Inc. (65%)
|
|
Lincoln Pipeline LLC (35%)
|
|
Total Members' Equity
|
||||||
|
(in thousands; except units)
|
||||||||||
Balance at December 31, 2013.................
|
$
|
38,005
|
|
|
—
|
|
|
$
|
38,005
|
|
|
Contributions (Note 7)..............................
|
185,332
|
|
|
120,256
|
|
|
305,588
|
|
|||
Net loss................................................
|
(7
|
)
|
|
(1
|
)
|
|
(8
|
)
|
|||
Balance at December 31, 2014.................
|
$
|
223,330
|
|
|
$
|
120,255
|
|
|
$
|
343,585
|
|
|
|
|
|
|
|
||||||
Balance at December 31, 2014.................
|
$
|
223,330
|
|
|
120,255
|
|
|
$
|
343,585
|
|
|
Contributions (Note 7)..............................
|
273,314
|
|
|
147,168
|
|
|
420,482
|
|
|||
Net income................................................
|
775
|
|
|
417
|
|
|
1,192
|
|
|||
Balance at December 31, 2015.................
|
$
|
497,419
|
|
|
$
|
267,840
|
|
|
$
|
765,259
|
|
|
|
|
|
|
|
||||||
Balance at December 31, 2015.................
|
$
|
497,419
|
|
|
267,840
|
|
|
$
|
765,259
|
|
|
Contributions (Note 7)..............................
|
60,378
|
|
|
32,511
|
|
|
92,889
|
|
|||
Distributions (Note 7)...............................
|
(57,798
|
)
|
|
(31,122
|
)
|
|
(88,920
|
)
|
|||
Net income................................................
|
48,861
|
|
|
26,310
|
|
|
75,171
|
|
|||
Balance at December 31, 2016.................
|
$
|
548,860
|
|
|
$
|
295,539
|
|
|
$
|
844,399
|
|
|
|
|
|
|
|
||||||
Units at December 31, 2016......................
|
557,023,245
|
|
|
299,935,593
|
|
|
|
|
Depreciation
Rates
|
|
December 31,
2016
|
|
December 31,
2015
|
||||
(in thousands )
|
|||||||||
Land......................................................................
|
—
|
|
$
|
316
|
|
|
$
|
1,077
|
|
Rights-of-way......................................................
|
3.33%
|
|
96,656
|
|
30,899
|
||||
Pipeline and other................................................
|
3.33%
|
|
743,722
|
|
758,995
|
||||
Vehicles, office furniture and equipment.............
|
20.00%
|
|
388
|
|
257
|
||||
Construction in progress .....................................
|
|
|
1,660
|
|
917
|
||||
Total property, plant and equipment.............
|
|
|
842,742
|
|
792,145
|
||||
Accumulated depreciation...................................
|
|
|
(29,848)
|
|
(1,496)
|
||||
Property, plant and equipment, net...............
|
|
|
$
|
812,894
|
|
|
$
|
790,649
|
|
|
December 31,
2016
|
|
December 31,
2015
|
||||
|
|
||||||
Accounts payable.......................................................................
|
$
|
624
|
|
|
$
|
6,557
|
|
Accrued payables ......................................................................
|
1,290
|
|
|
17,055
|
|
||
Contractor Hold..........................................................................
|
1,493
|
|
|
32,950
|
|
||
Accounts payable and other........................................................
|
$
|
3,407
|
|
|
$
|
56,562
|
|
|
For the year ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
|
(in thousands)
|
||||||||||
Total capital expenditures ...................................................
|
$
|
51,556
|
|
|
$
|
484,003
|
|
|
$
|
216,972
|
|
Decrease (Increase) in construction payables .....................
|
86,936
|
|
|
(21,032
|
)
|
|
(47,472
|
)
|
|||
Cash used for additions to property, plant and equipment...
|
$
|
138,492
|
|
|
$
|
462,971
|
|
|
$
|
169,500
|
|
|
For the six months ended June 30,
|
||||||
|
2017
|
|
2016
|
||||
|
(unaudited; in thousands)
|
||||||
Operating revenues:
|
|
|
|
||||
Operating revenue.............................................................................
|
$
|
4,692
|
|
|
$
|
2,636
|
|
Operating revenue - affiliate.............................................................
|
47,163
|
|
|
55,995
|
|
||
|
51,855
|
|
|
58,631
|
|
||
Operating expenses:
|
|
|
|
||||
Operating and administrative............................................................
|
$
|
1,068
|
|
|
$
|
3,291
|
|
Operating and administrative - affiliate............................................
|
4,124
|
|
|
4,632
|
|
||
Depreciation and amortization..........................................................
|
14,237
|
|
|
13,925
|
|
||
Physical oil (gains) losses.................................................................
|
(1,317
|
)
|
|
(1,160
|
)
|
||
|
18,112
|
|
|
20,688
|
|
||
Net income...............................................................................................
|
$
|
33,743
|
|
|
$
|
37,943
|
|
|
For the six months ended
June 30,
|
||||||
|
2017
|
|
2016
|
||||
|
(unaudited; in thousands)
|
||||||
Cash provided by operating activities:
|
|
|
|
||||
Net income.........................................................................................................
|
$
|
33,743
|
|
|
$
|
37,943
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization......................................................................
|
14,237
|
|
|
13,925
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Receivables, trade and other.....................................................................
|
465
|
|
|
(722
|
)
|
||
Due from affiliates ...................................................................................
|
2,111
|
|
|
(7,593
|
)
|
||
Other current assets .................................................................................
|
(434
|
)
|
|
(313
|
)
|
||
Other assets .............................................................................................
|
(3,786
|
)
|
|
(1,103
|
)
|
||
Due to affiliates .......................................................................................
|
5
|
|
|
1,563
|
|
||
Accounts payable and other ....................................................................
|
73
|
|
|
1,101
|
|
||
Property and other taxes payable.............................................................
|
188
|
|
|
554
|
|
||
Deferred revenue......................................................................................
|
(1,305
|
)
|
|
1,787
|
|
||
Net cash provided by operating activities ..............................................................
|
45,297
|
|
|
47,142
|
|
||
Cash used in investing activities:
|
|
|
|
||||
Additions to property, plant and equipment (Note 7)........................................
|
(5,780
|
)
|
|
(87,933
|
)
|
||
Other...................................................................................................................
|
(12
|
)
|
|
(13
|
)
|
||
Net cash used in investing activities ......................................................................
|
(5,792
|
)
|
|
(87,946
|
)
|
||
Cash (used in) provided by financing activities:
|
|
|
|
||||
Contributions by members ................................................................................
|
9,964
|
|
|
68,042
|
|
||
Distributions to members ..................................................................................
|
(32,760
|
)
|
|
(16,145
|
)
|
||
Net cash (used in) provided by financing activities ...............................................
|
(22,796
|
)
|
|
51,897
|
|
||
|
|
|
|
||||
Net increase in cash and cash equivalents .............................................................
|
16,709
|
|
|
11,093
|
|
||
Cash and cash equivalents at beginning of period..................................................
|
27,518
|
|
|
61,051
|
|
||
Cash and cash equivalents at end of period............................................................
|
$
|
44,227
|
|
|
$
|
72,144
|
|
|
June 30,
|
|
December 31,
|
||||
|
2017
|
|
2016
|
||||
|
(unaudited; in thousands)
|
||||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents ................................................................
|
$
|
44,227
|
|
|
$
|
27,518
|
|
Receivables, trade and other..............................................................
|
590
|
|
|
1,055
|
|
||
Due from affiliates (Note 6)..............................................................
|
7,647
|
|
|
9,758
|
|
||
Other current assets ..........................................................................
|
569
|
|
|
123
|
|
||
|
53,033
|
|
|
38,454
|
|
||
Property, plant and equipment, net...........................................................
|
802,135
|
|
|
812,894
|
|
||
Other assets ..............................................................................................
|
4,889
|
|
|
1,103
|
|
||
|
$
|
860,057
|
|
|
$
|
852,451
|
|
LIABILITIES AND MEMBERS' EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Due to affiliates (Note 6)...................................................................
|
$
|
1,325
|
|
|
$
|
1,320
|
|
Accounts payable and other (Note 4)................................................
|
1,178
|
|
|
3,407
|
|
||
Property and other taxes payable.......................................................
|
627
|
|
|
439
|
|
||
|
3,130
|
|
|
5,166
|
|
||
Deferred Revenue.....................................................................................
|
575
|
|
|
1,880
|
|
||
Deferred Revenue - affiliate.....................................................................
|
1,006
|
|
|
1,006
|
|
||
|
4,711
|
|
|
8,052
|
|
||
Members' equity (866,923,985 units and 856,958,838 units as of
|
|
|
|
||||
June 30, 2017 and December 31, 2016, respectively)..............................
|
855,346
|
|
|
844,399
|
|
||
|
$
|
860,057
|
|
|
$
|
852,451
|
|
|
Enbridge Energy Company, Inc. (65% )
|
|
Lincoln
Pipeline LLC (35% )
|
|
Total Members' Equity
|
||||||
;
|
(unaudited; in thousands; except units)
|
||||||||||
|
|
|
|
|
|
||||||
Balance at December 31, 2016..................................
|
$
|
548,859
|
|
|
295,540
|
|
|
$
|
844,399
|
|
|
Contributions (Note 6)...............................................
|
6,477
|
|
|
3,487
|
|
|
9,964
|
|
|||
Distributions (Note 6)................................................
|
(21,294
|
)
|
|
(11,466
|
)
|
|
(32,760
|
)
|
|||
Net income.................................................................
|
21,933
|
|
|
11,810
|
|
|
33,743
|
|
|||
Balance at June 30, 2017...........................................
|
$
|
555,975
|
|
|
$
|
299,371
|
|
|
$
|
855,346
|
|
|
|
|
|
|
|
||||||
Units at June 30, 2017................................................
|
563,500,591
|
|
|
303,423,394
|
|
|
|
|
June 30,
2017
|
|
December 31,
2016
|
||||
|
|
||||||
Accounts payable.......................................................................
|
$
|
554
|
|
|
$
|
624
|
|
Accrued payables ......................................................................
|
0
|
|
|
1,290
|
|
||
Contractor Hold..........................................................................
|
478
|
|
|
1,493
|
|
||
Other...........................................................................................
|
146
|
|
|
0
|
|
||
Accounts payable and other........................................................
|
$
|
1,178
|
|
|
$
|
3,407
|
|
|
For the six months ended June 30,
|
||||||
|
2017
|
|
2016
|
||||
|
(in thousands)
|
||||||
Total capital expenditures ...................................................................
|
$
|
3,478
|
|
|
$
|
30,548
|
|
Decrease in construction payables ...................................................
|
2,302
|
|
|
57,385
|
|
||
Cash used in additions to property, plant and equipment...........
|
$
|
5,780
|
|
|
$
|
87,933
|
|
|
|
2016
|
|
2015
|
||||
Assets
|
|
|
|
|
||||
Current Assets
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
27,438,056
|
|
|
$
|
53,042,282
|
|
Receivables from affiliates
|
|
11,002,371
|
|
|
14,340,359
|
|
||
Receivables from nonaffiliates
|
|
10,595,533
|
|
|
13,418,007
|
|
||
Materials and supplies
|
|
15,189,596
|
|
|
13,940,778
|
|
||
Prepayments
|
|
6,159,982
|
|
|
5,802,124
|
|
||
Restricted cash
|
|
8,384,000
|
|
|
5,009,500
|
|
||
Oil inventory
|
|
37,902,796
|
|
|
—
|
|
||
Total Current Assets
|
|
116,672,334
|
|
|
105,553,050
|
|
||
Property plant and equipment net of accumulated depreciation and amortization
|
|
754,871,328
|
|
|
685,406,041
|
|
||
Construction in progress
|
|
56,256,759
|
|
|
62,719,793
|
|
||
Net property, plant and equipment
|
|
811,128,087
|
|
|
748,125,834
|
|
||
Other assets
|
|
153,319
|
|
|
14,807,871
|
|
||
Total Assets
|
|
$
|
927,953,740
|
|
|
$
|
868,486,755
|
|
Liabilities and Members' Equity
|
|
|
|
|
||||
Current Liabilities
|
|
|
|
|
||||
Accounts payable and accrued expenses
|
|
$
|
25,124,185
|
|
|
$
|
27,094,242
|
|
Deferred revenue
|
|
6,523,000
|
|
|
—
|
|
||
Interest payable
|
|
1,290,742
|
|
|
1,243,624
|
|
||
Current maturities of long-term debt
|
|
94,710,000
|
|
|
20,000,000
|
|
||
Total current liabilities
|
|
127,647,927
|
|
|
48,337,866
|
|
||
Noncurrent Liabilities
|
|
|
|
|
||||
Long-term debt
|
|
270,016,077
|
|
|
364,437,592
|
|
||
Pension and benefits
|
|
40,226,441
|
|
|
37,649,546
|
|
||
Asset retirement obligation
|
|
18,919,413
|
|
|
17,611,260
|
|
||
Deferred revenue
|
|
1,643,674
|
|
|
5,350,636
|
|
||
Other
|
|
5,378,504
|
|
|
5,413,168
|
|
||
Total noncurrent liabilities
|
|
336,184,109
|
|
|
430,462,202
|
|
||
Members' Equity
|
|
464,121,704
|
|
|
389,686,687
|
|
||
Total Liabilities and Members' Equity
|
|
$
|
927,953,740
|
|
|
$
|
868,486,755
|
|
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
|
|
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Operating revenues
|
|
|
|
|
|
|
||||||
Offloading
|
|
$
|
94,391,083
|
|
|
$
|
91,010,164
|
|
|
$
|
87,784,531
|
|
Pipeline receipts
|
|
49,406,559
|
|
|
46,024,132
|
|
|
33,480,004
|
|
|||
Tank storage fees
|
|
45,230,000
|
|
|
43,533,710
|
|
|
44,066,946
|
|
|||
Cavern storage fees
|
|
44,304,189
|
|
|
48,249,665
|
|
|
28,739,812
|
|
|||
Storage futures trading
|
|
19,378,786
|
|
|
3,007,402
|
|
|
—
|
|
|||
Port fees, blending, and incidental
|
|
9,453,065
|
|
|
12,333,534
|
|
|
8,948,670
|
|
|||
Allowance oil
|
|
13,344,569
|
|
|
14,453,266
|
|
|
33,195,997
|
|
|||
Management fees
|
|
4,380,061
|
|
|
4,218,293
|
|
|
4,152,899
|
|
|||
Total operating revenues (
Affiliate revenue was approximately $119,209,000, $113,014,000 and $143,814,000 in 2016, 2015 and 2014, respectively
)
|
|
279,888,312
|
|
|
262,830,166
|
|
|
240,368,859
|
|
|||
Operating expenses
|
|
|
|
|
|
|
||||||
Salaries and wages
|
|
26,857,529
|
|
|
24,592,556
|
|
|
23,499,388
|
|
|||
Materials and supplies
|
|
5,375,485
|
|
|
4,534,446
|
|
|
3,733,475
|
|
|||
Outside services
|
|
58,970,356
|
|
|
53,413,194
|
|
|
52,510,528
|
|
|||
Fuel and power
|
|
8,794,552
|
|
|
11,909,762
|
|
|
13,827,559
|
|
|||
Maintenance materials
|
|
5,413,496
|
|
|
5,366,958
|
|
|
3,654,797
|
|
|||
Rentals
|
|
12,389,556
|
|
|
12,607,372
|
|
|
12,107,650
|
|
|||
Oil loss allowance
|
|
(9,229,377
|
)
|
|
15,372,917
|
|
|
1,059,908
|
|
|||
Depreciation, amortization, and accretion
|
|
26,285,324
|
|
|
28,122,716
|
|
|
20,386,227
|
|
|||
Pension and benefits
|
|
9,870,247
|
|
|
10,110,959
|
|
|
8,680,372
|
|
|||
Insurance and uninsured losses
|
|
1,988,686
|
|
|
1,787,234
|
|
|
1,496,051
|
|
|||
Taxes - other than income
|
|
4,578,235
|
|
|
4,477,876
|
|
|
4,417,421
|
|
|||
Total operating expenses
(Affiliate expense was approximately $1,606,000, $0 and $0 in 2016, 2015 and 2014, respectively)
|
|
151,294,089
|
|
|
172,295,990
|
|
|
145,373,376
|
|
|||
Income from operations
|
|
128,594,223
|
|
|
90,534,176
|
|
|
94,995,483
|
|
|||
Interest and other
|
|
|
|
|
|
|
||||||
Other income
|
|
2,206,185
|
|
|
2,405,433
|
|
|
1,866,513
|
|
|||
Interest income
|
|
123,041
|
|
|
55,331
|
|
|
65,217
|
|
|||
Interest expense
|
|
(5,038,509
|
)
|
|
(5,946,343
|
)
|
|
(6,586,849
|
)
|
|||
Net interest expense and other
|
|
(2,709,283
|
)
|
|
(3,485,579
|
)
|
|
(4,655,119
|
)
|
|||
Net income
|
|
$
|
125,884,940
|
|
|
$
|
87,048,597
|
|
|
$
|
90,340,364
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Net income
|
|
$
|
125,884,940
|
|
|
$
|
87,048,597
|
|
|
$
|
90,340,364
|
|
Other comprehensive income
|
|
|
|
|
|
|
||||||
Pension and postretirement benefits adjustments
|
|
(1,449,923
|
)
|
|
6,067,118
|
|
|
(13,252,754
|
)
|
|||
Comprehensive income
|
|
$
|
124,435,017
|
|
|
$
|
93,115,715
|
|
|
$
|
77,087,610
|
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Members' equity
|
|
|
|
|
|
|
||||||
Balances at beginning of year
|
|
$
|
419,664,718
|
|
|
$
|
391,616,121
|
|
|
$
|
357,775,757
|
|
Net income
|
|
125,884,940
|
|
|
87,048,597
|
|
|
90,340,364
|
|
|||
Members' distributions
|
|
(50,000,000
|
)
|
|
(59,000,000
|
)
|
|
(56,500,000
|
)
|
|||
Balances at end of year
|
|
495,549,658
|
|
|
419,664,718
|
|
|
391,616,121
|
|
|||
|
|
|
|
|
|
|
||||||
Accumulated other comprehensive loss
|
|
|
|
|
|
|
||||||
Defined benefit pension and other postretirement plans
|
|
|
|
|
|
|
||||||
Balances at beginning of year
|
|
(29,978,031
|
)
|
|
(36,045,149
|
)
|
|
(22,792,395
|
)
|
|||
Other comprehensive income (loss)
|
|
(1,449,923
|
)
|
|
6,067,118
|
|
|
(13,252,754
|
)
|
|||
Balances at end of year
|
|
(31,427,954
|
)
|
|
(29,978,031
|
)
|
|
(36,045,149
|
)
|
|||
Members' equity, end of year
|
|
$
|
464,121,704
|
|
|
$
|
389,686,687
|
|
|
$
|
355,570,972
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Cash flows from operating activities
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
125,884,940
|
|
|
$
|
87,048,597
|
|
|
$
|
90,340,364
|
|
Adjustments to reconcile net income to net cash provided by operating activities
|
|
|
|
|
|
|
||||||
Depreciation amortization and accretion
|
|
26,285,324
|
|
|
28,122,716
|
|
|
20,386,227
|
|
|||
Inventory valuation write-down
|
|
—
|
|
|
10,910,935
|
|
|
3,557,572
|
|
|||
Pension and benefits
|
|
2,576,895
|
|
|
(4,046,454
|
)
|
|
(13,776,700
|
)
|
|||
Changes in operating assets and liabilities
|
|
|
|
|
|
|
||||||
Receivables from affiliates
|
|
3,337,988
|
|
|
(2,548,393
|
)
|
|
(4,519,830
|
)
|
|||
Receivables from nonaffiliates
|
|
2,822,474
|
|
|
(1,365,534
|
)
|
|
(1,522,759
|
)
|
|||
Materials and supplies
|
|
(1,248,818
|
)
|
|
2,895,062
|
|
|
(1,138,522
|
)
|
|||
Prepayments
|
|
(357,858
|
)
|
|
(10,748
|
)
|
|
(448,380
|
)
|
|||
Other assets
|
|
(110,604
|
)
|
|
—
|
|
|
(1,568,623
|
)
|
|||
Oil inventory
|
|
(23,137,641
|
)
|
|
(9,835,119
|
)
|
|
8,336,961
|
|
|||
Deferred revenue
|
|
2,816,038
|
|
|
2,090,194
|
|
|
1,337,342
|
|
|||
Other noncurrent liabilities
|
|
(1,196,102
|
)
|
|
5,476,232
|
|
|
13,372,416
|
|
|||
Accounts payable, accrued expenses and other
|
|
1,686,918
|
|
|
4,905,112
|
|
|
(535,666
|
)
|
|||
Interest payable
|
|
47,118
|
|
|
(72,634
|
)
|
|
(259,578
|
)
|
|||
Net cash provided by operating activities
|
|
139,406,672
|
|
|
123,569,966
|
|
|
113,560,824
|
|
|||
Cash flows from investing activities
|
|
|
|
|
|
|
||||||
Capital expenditures
|
|
(91,636,398
|
)
|
|
(60,722,577
|
)
|
|
(29,502,110
|
)
|
|||
Increase in restricted cash
|
|
(3,374,500
|
)
|
|
(5,009,500
|
)
|
|
—
|
|
|||
Net cash used in investing activities
|
|
(95,010,898
|
)
|
|
(65,732,077
|
)
|
|
(29,502,110
|
)
|
|||
Cash flows from financing activities
|
|
|
|
|
|
|
||||||
Members' distributions
|
|
(50,000,000
|
)
|
|
(59,000,000
|
)
|
|
(56,500,000
|
)
|
|||
Payments on long-term debt
|
|
(20,000,000
|
)
|
|
(10,000,000
|
)
|
|
(30,000,000
|
)
|
|||
Net cash used in financing activities
|
|
(70,000,000
|
)
|
|
(69,000,000
|
)
|
|
(86,500,000
|
)
|
|||
Net decrease in cash and cash equivalents
|
|
(25,604,226
|
)
|
|
(11,162,111
|
)
|
|
(2,441,286
|
)
|
|||
Cash and cash equivalents
|
|
|
|
|
|
|
||||||
Beginning of year
|
|
53,042,282
|
|
|
64,204,393
|
|
|
66,645,679
|
|
|||
End of year
|
|
$
|
27,438,056
|
|
|
$
|
53,042,282
|
|
|
$
|
64,204,393
|
|
Noncash transactions
|
|
|
|
|
|
|
||||||
Capital expenditures in accounts payable and accrued expenses, net
|
|
$
|
(3,656,971
|
)
|
|
$
|
1,243,655
|
|
|
$
|
2,695,787
|
|
|
|
|
|
|
|
|
|
|
Ownership
|
|
T&D Obligation
|
||
Marathon Petroleum Company LP
|
|
10.0
|
%
|
|
50.7
|
%
|
MPL Louisiana Holdings LLC
|
|
40.7
|
|
|
*
|
|
Valero Terminaling and Distribution Company
|
|
3.2
|
|
|
3.2
|
|
Shell Oil Company
|
|
19.5
|
|
|
46.1
|
|
Shell Pipeline Company LP
|
|
26.6
|
|
|
**
|
|
|
|
100.0
|
%
|
|
100.0
|
%
|
* The T&D obligor is Marathon Petroleum Company LP
|
||||||
** The T&D obligor is Shell Oil Company
|
||||||
|
|
|
|
|
•
|
Discount Rate—The discount rate is used in calculating the present value of benefits, which is based on projections of benefit payments to be made in the future.
|
•
|
Expected Return on Plan Assets—The future return on plan assets are projected based on prior performance and future expectations for the types of investments held by the plans, as well as the expected long-term allocation of plan assets for these investments. These projected returns reduce the net benefit costs recorded currently.
|
•
|
Rate of Compensation Increase—For salary-related plans, employees’ annual pay increases are projected, which are used to project employees’ pension benefits at retirement.
|
•
|
Mortality Assumptions—Assumptions about life expectancy of plan participants are used in the measurement of related plan obligations.
|
(in thousands)
|
|
2016
|
|
2015
|
||||
Land, leases, and rights of way
|
|
$
|
13,362
|
|
|
$
|
13,362
|
|
Buildings
|
|
77,755
|
|
|
75,089
|
|
||
Equipment and communications systems
|
|
33,499
|
|
|
31,538
|
|
||
Storage caverns and tanks
|
|
610,191
|
|
|
546,747
|
|
||
Delivery equipment
|
|
795,476
|
|
|
773,382
|
|
||
Furniture, fixtures, and other
|
|
29,864
|
|
|
29,810
|
|
||
Construction in progress
|
|
56,257
|
|
|
62,720
|
|
||
Total property, plant, and equipment
|
|
$
|
1,616,404
|
|
|
$
|
1,532,648
|
|
Accumulated depreciation
|
|
805,276
|
|
|
784,522
|
|
||
Net property, plant, and equipment
|
|
$
|
811,128
|
|
|
$
|
748,126
|
|
(in thousands)
|
|
Asset Retirement Obligation
|
||
December 31, 2014
|
|
$
|
6,901
|
|
Change in estimate
|
|
8,569
|
|
|
Accretion expense
|
|
2,141
|
|
|
December 31, 2015
|
|
17,611
|
|
|
Change in estimate
|
|
—
|
|
|
Accretion expense
|
|
1,308
|
|
|
December 31, 2016
|
|
$
|
18,919
|
|
Series
|
|
Maturity Date
|
|
Average Interest Rates for 2016
|
|
Date of Mandatory Put
|
|
Outstanding as of December 31, 2016
|
|||
1997A
|
|
September 1, 2017
|
|
1.10
|
%
|
|
N/A
|
|
$
|
24,710
|
|
1999
|
|
October 1, 2019
|
|
*
|
|
|
N/A
|
|
24,605
|
|
|
2001
|
|
October 1, 2021
|
|
*
|
|
|
N/A
|
|
23,255
|
|
|
2003D
|
|
September 1, 2023
|
|
*
|
|
|
N/A
|
|
22,520
|
|
|
2007A
|
|
September 1, 2027
|
|
0.86
|
%
|
|
N/A
|
|
81,020
|
|
|
2007B1A1
|
|
October 1, 2037
|
|
*
|
|
|
N/A
|
|
20,000
|
|
|
2007B1A2
|
|
October 1, 2037
|
|
*
|
|
|
N/A
|
|
20,000
|
|
|
2007B1B
|
|
October 1, 2037
|
|
*
|
|
|
N/A
|
|
20,000
|
|
|
2007B2A1
|
|
October 1, 2037
|
|
1.7
|
%
|
|
October 1, 2019
|
|
30,000
|
|
|
2007B2A2
|
|
October 1, 2037
|
|
*
|
|
|
N/A
|
|
10,000
|
|
|
2007B2B
|
|
October 1, 2037
|
|
*
|
|
|
N/A
|
|
20,000
|
|
|
2010A
|
|
October 1, 2018
|
|
3.95
|
%
|
|
October 1, 2018
|
|
22,980
|
|
|
2010B-1
|
|
October 1, 2040
|
|
2.2
|
%
|
|
October 1, 2017
|
|
70,000
|
|
|
2010B-2
|
|
October 1, 2040
|
|
*
|
|
|
N/A
|
|
30,000
|
|
|
2012
|
|
October 1, 2020
|
|
*
|
|
|
N/A
|
|
22,345
|
|
|
2013A
|
|
September 1, 2033
|
|
0.97
|
%
|
|
N/A
|
|
56,550
|
|
|
2013B
|
|
September 1, 2033
|
|
1.18
|
%
|
|
N/A
|
|
43,450
|
|
|
2013C
|
|
September 1, 2034
|
|
0.97
|
%
|
|
N/A
|
|
37,960
|
|
|
|
|
|
|
|
|
|
|
$
|
579,395
|
|
|
|
|
*Less Treasury bonds held by LOOP
|
|
|
|
(212,725
|
)
|
||||
|
|
Total debt
|
|
|
|
$
|
366,670
|
|
|||
|
|
Less amount due within one year
|
|
|
|
(94,710
|
)
|
||||
|
|
Less issuance costs
|
|
|
|
(1,944
|
)
|
||||
|
|
|
|
Total long-term debt
|
|
$
|
270,016
|
|
(in thousands)
|
|
Annual Amount
|
|
||
Years
|
|
|
|
||
2017
|
|
$
|
94,710
|
|
*
|
2018
|
|
22,980
|
|
|
|
2019
|
|
—
|
|
|
|
2020
|
|
—
|
|
|
|
Thereafter
|
|
248,980
|
|
|
|
|
|
$
|
366,670
|
|
|
(in thousands)
|
|
Pension benefits
|
|
Other Postretirement Benefits
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Change in projected benefit obligation
|
|
|
|
|
|
|
|
|
||||||||
Benefit obligation at January 1
|
|
$
|
85,118
|
|
|
$
|
87,607
|
|
|
$
|
15,201
|
|
|
$
|
14,715
|
|
Service cost
|
|
3,164
|
|
|
3,424
|
|
|
613
|
|
|
619
|
|
||||
Interest cost
|
|
3,810
|
|
|
3,665
|
|
|
664
|
|
|
604
|
|
||||
Participant contributions
|
|
—
|
|
|
—
|
|
|
192
|
|
|
182
|
|
||||
Actuarial (gain) loss
|
|
4,847
|
|
|
(7,180
|
)
|
|
441
|
|
|
(402
|
)
|
||||
Benefit payments
|
|
(2,662
|
)
|
|
(2,398
|
)
|
|
(489
|
)
|
|
(517
|
)
|
||||
Benefit obligation at December 31
|
|
$
|
94,277
|
|
|
$
|
85,118
|
|
|
$
|
16,622
|
|
|
$
|
15,201
|
|
Accumulated benefit obligation
|
|
$
|
80,439
|
|
|
$
|
73,003
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Change in plan assets
|
|
|
|
|
|
|
|
|
||||||||
Fair value of plan assets at January 1
|
|
$
|
63,015
|
|
|
$
|
60,626
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Actual return on plan assets
|
|
6,693
|
|
|
656
|
|
|
—
|
|
|
—
|
|
||||
Employer contributions
|
|
4,231
|
|
|
4,131
|
|
|
297
|
|
|
335
|
|
||||
Participant contributions
|
|
—
|
|
|
—
|
|
|
192
|
|
|
182
|
|
||||
Benefit payments
|
|
(2,662
|
)
|
|
(2,398
|
)
|
|
(489
|
)
|
|
(517
|
)
|
||||
Fair value of plan assets at December 31
|
|
$
|
71,277
|
|
|
$
|
63,015
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Funded status of plans
|
|
$
|
(23,000
|
)
|
|
$
|
(22,103
|
)
|
|
$
|
(16,622
|
)
|
|
$
|
(15,201
|
)
|
Amounts recognized in the balance sheet
|
|
|
|
|
|
|
|
|
||||||||
Current assets
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Noncurrent asset
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Current liability
|
|
30
|
|
|
20
|
|
|
476
|
|
|
476
|
|
||||
Noncurrent liability
|
|
22,971
|
|
|
22,083
|
|
|
16,146
|
|
|
14,725
|
|
||||
Accumulated other comprehensive loss
|
|
28,734
|
|
|
27,658
|
|
|
2,694
|
|
|
2,320
|
|
(in thousands)
|
|
2016
|
|
2015
|
|
2014
|
||||||
Pension plans
|
|
|
|
|
|
|
||||||
Service cost
|
|
$
|
3,164
|
|
|
$
|
3,424
|
|
|
$
|
2,942
|
|
Interest cost
|
|
3,810
|
|
|
3,665
|
|
|
3,409
|
|
|||
Expected return on assets
|
|
(4,795
|
)
|
|
(4,456
|
)
|
|
(4,071
|
)
|
|||
Amortization of prior service cost
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Amortization of actuarial loss
|
|
1,873
|
|
|
2,211
|
|
|
1,550
|
|
|||
Net periodic pension cost
|
|
4,052
|
|
|
4,844
|
|
|
3,830
|
|
|||
Other postretirement plans
|
|
|
|
|
|
|
||||||
Service cost
|
|
613
|
|
|
619
|
|
|
497
|
|
|||
Interest cost
|
|
664
|
|
|
604
|
|
|
551
|
|
|||
Expected return on assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Amortization of prior service cost
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Amortization of actuarial loss
|
|
68
|
|
|
74
|
|
|
—
|
|
|||
Net other postretirement plans cost
|
|
$
|
1,345
|
|
|
$
|
1,297
|
|
|
$
|
1,048
|
|
(in thousands)
|
|
Pension benefits
|
|
Other Postretirement Benefits
|
||||||||||||||||||||
|
|
2016
|
|
2015
|
|
2014
|
|
2016
|
|
2015
|
|
2014
|
||||||||||||
Net actuarial loss
|
|
$
|
(28,734
|
)
|
|
$
|
(27,658
|
)
|
|
$
|
(33,249
|
)
|
|
$
|
(2,694
|
)
|
|
$
|
(2,320
|
)
|
|
$
|
(2,796
|
)
|
(in thousands)
|
|
Pension benefits
|
|
Other Postretirement Benefits
|
||||||||||||||||||||||
|
|
2016
|
|
2015
|
|
2014
|
|
2016
|
|
2015
|
|
2014
|
||||||||||||||
Net periodic benefit cost recognized
|
|
$
|
6,974
|
|
|
$
|
7,089
|
|
|
$
|
6,351
|
|
|
$
|
1,277
|
|
1,223
|
|
$
|
1,223
|
|
1,048
|
|
$
|
1,048
|
|
Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Expected return on plan assets
|
|
(4,795
|
)
|
|
(4,456
|
)
|
|
(4,071
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Net actuarial loss
|
|
1,873
|
|
|
2,211
|
|
|
1,550
|
|
|
68
|
|
|
74
|
|
|
—
|
|
||||||||
Total recognized in accumulated other comprehensive income
|
|
(2,922
|
)
|
|
(2,245
|
)
|
|
(2,521
|
)
|
|
68
|
|
|
74
|
|
|
—
|
|
||||||||
Total recognized in net periodic benefit cost and accumulated other comprehensive income
|
|
$
|
4,052
|
|
|
$
|
4,844
|
|
|
$
|
3,830
|
|
|
$
|
1,345
|
|
|
$
|
1,297
|
|
|
$
|
1,048
|
|
(in thousands)
|
|
Pension benefits
|
|
Other Postretirement Benefits
|
||||||||
|
|
2016
|
|
2015
|
|
2014
|
|
2016
|
|
2015
|
|
2014
|
Weighted average assumptions December 31
|
|
|
|
|
|
|
|
|
|
|
|
|
Discount Rate - Retirement plan
|
|
4.16%
|
|
4.46%
|
|
4.21%
|
|
4.20%
|
|
4.51%
|
|
4.30%
|
Discount rate - Supplemental retirement plan
|
|
4.01%
|
|
4.46%
|
|
4.21%
|
|
|
|
|
|
|
Expected return on plan assets
|
|
7.50%
|
|
7.50%
|
|
7.50%
|
|
N/A
|
|
N/A
|
|
N/A
|
Rate of compensation increase - Retirement plan/Postretirement plan
|
|
4.50%
|
|
4.50%
|
|
5.00%
|
|
4.50%
|
|
4.50%
|
|
4.50%
|
Rate of compensation increase - Supplemental retirement plan
|
|
5.00%
|
|
5.00%
|
|
5.00%
|
|
|
|
|
|
|
Healthcare cost trend rate
|
|
N/A
|
|
N/A
|
|
N/A
|
|
7.50%
|
|
5.60%
|
|
8.00%
|
Rate to which cost trend declines
|
|
N/A
|
|
N/A
|
|
N/A
|
|
5.00%
|
|
5.00%
|
|
5.00%
|
Year rate reaches ultimate trend rate
|
|
—
|
|
—
|
|
—
|
|
2021
|
|
2021
|
|
2020
|
Funded Status Target (FST)
|
|
<85%
|
|
85–90%
|
|
90–95%
|
|
>95%
|
||||
Equity +/-5%
|
|
65
|
%
|
|
60
|
%
|
|
55
|
%
|
|
50
|
%
|
Fixed income +/-5%
|
|
35
|
|
|
40
|
|
|
45
|
|
|
50
|
|
|
|
Minimum Percentage
|
|
Target Percentage
|
|
Maximum Percentage
|
|||
Large Cap
|
|
42
|
%
|
|
62
|
%
|
|
82
|
%
|
Mid Cap
|
|
7
|
|
|
15
|
|
|
23
|
|
Small Cap
|
|
4
|
|
|
8
|
|
|
12
|
|
Non-U.S.
|
|
7
|
|
|
15
|
|
|
23
|
|
Equities
|
|
|
|
100
|
%
|
|
|
(in thousands)
|
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
|
Significant Other Observable Inputs (Level 2)
|
|
Significant Unobservable Inputs
(Level 3)
|
|
Total
|
||||||||
Short-term investment fund (a)
|
|
525
|
|
|
—
|
|
|
—
|
|
|
525
|
|
||||
Mutual funds (b)
|
|
578
|
|
|
—
|
|
|
—
|
|
|
578
|
|
||||
Subtotal
|
|
$
|
1,103
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,103
|
|
|
|
|
|
|
|
|
|
|
||||||||
Common/collective trust funds (c)
|
|
|
|
|
|
|
|
|
||||||||
S&P 500 index
|
|
|
|
|
|
|
|
$
|
6,970
|
|
||||||
Liability driven investment
|
|
|
|
|
|
|
|
6,049
|
|
|||||||
Midcap index
|
|
|
|
|
|
|
|
24,641
|
|
|||||||
International equity index
|
|
|
|
|
|
|
|
3,659
|
|
|||||||
Small cap index
|
|
|
|
|
|
|
|
28,855
|
|
|||||||
Subtotal
|
|
|
|
|
|
|
|
$
|
70,174
|
|
||||||
Total Assets
|
|
|
|
|
|
|
|
$
|
71,277
|
|
(in thousands)
|
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
|
Significant Other Observable Inputs (Level 2)
|
|
Significant Unobservable Inputs
(Level 3)
|
|
Total
|
||||||||
Common/collective trust funds (a)
|
|
$
|
—
|
|
|
$
|
6,094
|
|
|
$
|
—
|
|
|
$
|
6,094
|
|
Midcap index
|
|
|
|
5,229
|
|
|
|
|
5,229
|
|
||||||
International equity index
|
|
|
|
21,731
|
|
|
|
|
21,731
|
|
||||||
Liability driven investment
|
|
|
|
3,532
|
|
|
|
|
3,532
|
|
||||||
Small cap index
|
|
|
|
25,155
|
|
|
|
|
25,155
|
|
||||||
S&P 500 index
|
|
|
|
|
|
|
|
—
|
|
|||||||
Short-term investment fund (b)
|
|
791
|
|
|
|
|
|
|
791
|
|
||||||
Mutual funds (c)
|
|
482
|
|
|
|
|
|
|
482
|
|
||||||
Total Assets
|
|
$
|
1,273
|
|
|
$
|
61,741
|
|
|
$
|
—
|
|
|
$
|
63,014
|
|
(in thousands)
|
|
Pension benefits
|
|
Other Postretirement Benefits
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Benefit cost
|
|
$
|
4,052
|
|
|
$
|
4,844
|
|
|
$
|
1,345
|
|
|
$
|
1,297
|
|
Employer contributions
|
|
4,231
|
|
|
4,131
|
|
|
297
|
|
|
335
|
|
||||
Participant contributions
|
|
—
|
|
|
—
|
|
|
192
|
|
|
182
|
|
||||
Benefits paid
|
|
2,662
|
|
|
2,398
|
|
|
489
|
|
|
517
|
|
(in thousands)
|
|
Pension Benefits
|
|
Other Benefits
|
||||
2017
|
|
$
|
3,009
|
|
|
$
|
476
|
|
2018
|
|
3,566
|
|
|
532
|
|
||
2019
|
|
3,798
|
|
|
556
|
|
||
2020
|
|
3,987
|
|
|
622
|
|
||
2021
|
|
4,323
|
|
|
658
|
|
||
Years 2022-2026
|
|
25,228
|
|
|
3,949
|
|
(in thousands)
|
|
Capital Leases
|
|
Operating Leases
|
||||
2017
|
|
$
|
2,000
|
|
|
$
|
2,946
|
|
2018
|
|
—
|
|
|
3,066
|
|
||
2019
|
|
—
|
|
|
3,190
|
|
||
2020
|
|
—
|
|
|
3,223
|
|
||
2021
|
|
—
|
|
|
3,287
|
|
||
Thereafter
|
|
—
|
|
|
22,891
|
|
||
Total minimum lease payments
|
|
$
|
2,000
|
|
|
$
|
38,603
|
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
Assets
|
|
|
|
|
||||
Current assets
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
48,533,474
|
|
|
$
|
27,438,056
|
|
Receivables from affiliates
|
|
12,101,595
|
|
|
11,002,371
|
|
||
Receivables from nonaffiliates
|
|
11,245,949
|
|
|
10,595,533
|
|
||
Materials and supplies
|
|
15,799,856
|
|
|
15,189,596
|
|
||
Prepayments
|
|
7,898,248
|
|
|
6,159,982
|
|
||
Restricted cash
|
|
1,904,000
|
|
|
8,384,000
|
|
||
Oil inventory
|
|
31,069,730
|
|
|
37,902,796
|
|
||
Total current assets
|
|
128,552,852
|
|
|
116,672,334
|
|
||
Property, plant and equipment net of accumulated depreciation and amortization
|
|
776,505,687
|
|
|
754,871,328
|
|
||
Construction in progress
|
|
40,064,998
|
|
|
56,256,759
|
|
||
Net property, plant and equipment
|
|
816,570,685
|
|
|
811,128,087
|
|
||
Other assets
|
|
147,296
|
|
|
153,319
|
|
||
Total Assets
|
|
$
|
945,270,833
|
|
|
$
|
927,953,740
|
|
Liabilities and Members' Equity
|
|
|
|
|
||||
Current liabilities
|
|
|
|
|
||||
Accounts payable and accrued expenses
|
|
$
|
16,338,242
|
|
|
$
|
25,124,185
|
|
Deferred revenue
|
|
3,210,250
|
|
|
6,523,000
|
|
||
Interest payable
|
|
1,223,334
|
|
|
1,290,742
|
|
||
Current maturities of long-term debt
|
|
94,710,000
|
|
|
94,710,000
|
|
||
Total current liabilities
|
|
115,481,826
|
|
|
127,647,927
|
|
||
Noncurrent Liabilities
|
|
|
|
|
||||
Long-term debt
|
|
270,096,172
|
|
|
270,016,077
|
|
||
Pension and benefits
|
|
43,083,908
|
|
|
40,226,441
|
|
||
Asset retirement obligation
|
|
19,659,750
|
|
|
18,919,413
|
|
||
Deferred revenue
|
|
1,530,243
|
|
|
1,643,674
|
|
||
Other
|
|
5,352,926
|
|
|
5,378,504
|
|
||
Total noncurrent liabilities
|
|
339,722,999
|
|
|
336,184,109
|
|
||
Members' equity
|
|
490,066,008
|
|
|
464,121,704
|
|
||
Total Liabilities and Members' Equity
|
|
$
|
945,270,833
|
|
|
$
|
927,953,740
|
|
|
|
Six Months Ended June 30,
|
||||||
|
|
2017
|
|
2016
|
||||
Operating revenues
|
|
|
|
|
||||
Offloading
|
|
$
|
42,336,952
|
|
|
$
|
50,708,383
|
|
Pipeline receipts
|
|
28,916,712
|
|
|
23,997,014
|
|
||
Tank storage fees
|
|
27,196,340
|
|
|
22,530,000
|
|
||
Cavern storage fees
|
|
24,426,151
|
|
|
17,239,354
|
|
||
Storage futures trading
|
|
14,075,629
|
|
|
8,166,273
|
|
||
Port fees, blending, and incidental
|
|
4,294,238
|
|
|
4,749,722
|
|
||
Allowance oil
|
|
13,476,935
|
|
|
6,195,225
|
|
||
Management fees
|
|
2,312,543
|
|
|
2,226,257
|
|
||
Total Operating Revenues (
Affiliate revenue was approximately $69,567,000 and $59,957,000 in 2017 and 2016, respectively
)
|
|
157,035,500
|
|
|
135,812,228
|
|
||
Operating expenses
Salaries and wages |
|
|
|
|
||||
Salaries and wages
|
|
13,698,506
|
|
|
12,895,713
|
|
||
Materials and supplies
|
|
2,580,340
|
|
|
2,601,019
|
|
||
Outside services
|
|
27,206,757
|
|
|
26,810,987
|
|
||
Fuel and power
|
|
4,918,666
|
|
|
4,830,826
|
|
||
Maintenance materials
|
|
1,396,992
|
|
|
2,322,261
|
|
||
Rentals
|
|
5,761,117
|
|
|
5,609,610
|
|
||
Oil loss allowance
|
|
348,305
|
|
|
1,860,369
|
|
||
Depreciation, amortization, and accretion
|
|
12,162,085
|
|
|
12,024,569
|
|
||
Pension and benefits
|
|
5,158,606
|
|
|
5,261,043
|
|
||
Insurance and uninsured losses
|
|
945,894
|
|
|
955,801
|
|
||
Taxes - other than income
|
|
2,536,411
|
|
|
2,357,480
|
|
||
Total operating expenses (
Affiliate expense was $0 for 2017 and 2016, respectively
)
|
|
76,713,679
|
|
|
77,529,678
|
|
||
Income from operations
|
|
80,321,821
|
|
|
58,282,550
|
|
||
Interest and other
|
|
|
|
|
||||
Other income
|
|
1,358,184
|
|
|
1,089,941
|
|
||
Interest income
|
|
65,583
|
|
|
94,006
|
|
||
Interest expense
|
|
(3,301,284
|
)
|
|
(2,409,938
|
)
|
||
Net interest expense and other
|
|
(1,877,517
|
)
|
|
(1,225,991
|
)
|
||
Net income
|
|
$
|
78,444,304
|
|
|
$
|
57,056,559
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
||||||
|
|
2017
|
|
2016
|
||||
Net income
|
|
$
|
78,444,304
|
|
|
$
|
57,056,559
|
|
Other comprehensive income
|
|
|
|
|
||||
Pension and postretirement benefits adjustments
|
|
(995,730
|
)
|
|
(724,962
|
)
|
||
Comprehensive income
|
|
$
|
77,448,574
|
|
|
$
|
56,331,597
|
|
|
|
Six Months Ended June 30,
|
||||||
|
|
2017
|
|
2016
|
||||
Members' equity
|
|
|
|
|
||||
Balances at beginning of year
|
|
$
|
464,121,704
|
|
|
$
|
419,664,718
|
|
Net income
|
|
78,444,304
|
|
|
57,056,559
|
|
||
Members' distributions
|
|
(52,500,000
|
)
|
|
(32,500,000
|
)
|
||
Balances at June 30
|
|
490,066,008
|
|
|
444,221,277
|
|
|
|
Six Months Ended June 30,
|
||||||
|
|
2017
|
|
2016
|
||||
Cash flows from operating activities
|
|
|
|
|
||||
Net income
|
|
$
|
78,444,304
|
|
|
$
|
57,056,559
|
|
Adjustments to reconcile net income to net cash provided by operating activities
|
|
|
|
|
||||
Depreciation, amortization, and accretion
|
|
12,242,180
|
|
|
12,024,569
|
|
||
Pension and benefits
|
|
2,857,467
|
|
|
2,985,434
|
|
||
Changes in operating assets and liabilities
|
|
|
|
|
||||
Receivables from affiliates
|
|
(1,099,224
|
)
|
|
3,895,899
|
|
||
Receivables from nonaffiliates
|
|
(650,416
|
)
|
|
(609,649
|
)
|
||
Materials and supplies
|
|
(610,260
|
)
|
|
(668,269
|
)
|
||
Prepayments
|
|
(1,738,266
|
)
|
|
127,492
|
|
||
Other assets
|
|
6,023
|
|
|
93,276
|
|
||
Oil inventory
|
|
6,833,066
|
|
|
(4,544,856
|
)
|
||
Deferred revenue
|
|
(3,426,181
|
)
|
|
2,288,937
|
|
||
Accounts payable and accrued expenses
|
|
(6,582,094
|
)
|
|
1,291,398
|
|
||
Other noncurrent liabilities
|
|
714,759
|
|
|
556,240
|
|
||
Interest payable
|
|
(67,408
|
)
|
|
32,602
|
|
||
Net cash provided by operating activities
|
|
86,923,950
|
|
|
74,529,632
|
|
||
Cash flows from investing activities
|
|
|
|
|
||||
Capital expenditures
|
|
(19,808,532
|
)
|
|
(61,916,630
|
)
|
||
Increase in restricted cash
|
|
6,480,000
|
|
|
(6,071,000
|
)
|
||
Net cash used in investing activities
|
|
(13,328,532
|
)
|
|
(67,987,630
|
)
|
||
Cash flows from financing activities
|
|
|
|
|
||||
Members' distributions
|
|
(52,500,000
|
)
|
|
(32,500,000
|
)
|
||
Net cash used in financing activities
|
|
(52,500,000
|
)
|
|
(32,500,000
|
)
|
||
Net increase (decrease) in cash and cash equivalents
|
|
21,095,418
|
|
|
(25,957,998
|
)
|
||
Cash and cash equivalents
|
|
|
|
|
||||
Beginning of period
|
|
27,438,056
|
|
|
53,042,282
|
|
||
End of period
|
|
$
|
48,533,474
|
|
|
$
|
27,084,284
|
|
Noncash transactions
|
|
|
|
|
||||
Capital expenditures in accounts payable and accrued expenses, net
|
|
$
|
(2,203,848
|
)
|
|
$
|
(159,486
|
)
|
|
|
|
|
|
|
|
Ownership
|
|
T&D Obligation
|
||
Marathon Petroleum Company LP
|
|
10.0
|
%
|
|
50.7
|
%
|
MPL Louisiana Holdings LLC
|
|
40.7
|
|
|
*
|
|
Valero Terminaling and Distribution Company
|
|
3.2
|
|
|
3.2
|
|
Shell Oil Company
|
|
19.5
|
|
|
46.1
|
|
Shell Pipeline Company LP
|
|
26.6
|
|
|
**
|
|
|
|
100.0
|
%
|
|
100.0
|
%
|
* The T&D obligor is Marathon Petroleum Company LP.
|
|
|
||||
** The T&D obligor is Shell Oil Company.
|
|
|
|
|
||
|
|
|
|
|
(in thousands)
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
Land, leases, and rights of way
|
|
$
|
13,362
|
|
|
$
|
13,362
|
|
Buildings
|
|
77,755
|
|
|
77,755
|
|
||
Equipment and communications systems
|
|
35,344
|
|
|
33,499
|
|
||
Storage caverns and tanks
|
|
638,219
|
|
|
610,191
|
|
||
Delivery equipment
|
|
798,218
|
|
|
795,476
|
|
||
Furniture, fixtures, and other
|
|
29,940
|
|
|
29,864
|
|
||
Construction in progress
|
|
40,065
|
|
|
56,257
|
|
||
Total property, plant, and equipment
|
|
$
|
1,632,903
|
|
|
$
|
1,616,404
|
|
Accumulated depreciation
|
|
816,333
|
|
|
805,276
|
|
||
Net property, plant, and equipment
|
|
$
|
816,570
|
|
|
$
|
811,128
|
|
(in thousands)
|
|
Asset Retirement Obligation
|
||
December 31, 2015
|
|
$
|
17,611
|
|
Change in estimate
|
|
—
|
|
|
Accretion expense
|
|
622
|
|
|
June 30, 2016
|
|
$
|
18,233
|
|
|
|
|
||
December 31, 2016
|
|
$
|
18,919
|
|
Change in estimate
|
|
—
|
|
|
Accretion expense
|
|
741
|
|
|
June 30, 2017
|
|
$
|
19,660
|
|
Series
|
|
Maturity Date
|
|
Date of Mandatory Put
|
|
Outstanding as of June 30, 2017
|
||
1997A
|
|
September 1, 2017
|
|
N/A
|
|
$
|
24,710
|
|
1999
|
*
|
October 1, 2019
|
|
N/A
|
|
24,605
|
|
|
2001
|
*
|
October 1, 2021
|
|
N/A
|
|
23,255
|
|
|
2003D
|
*
|
September 1, 2023
|
|
N/A
|
|
22,520
|
|
|
2007A
|
|
September 1, 2027
|
|
N/A
|
|
81,020
|
|
|
2007B1A1
|
*
|
October 1, 2037
|
|
N/A
|
|
20,000
|
|
|
2007B1B
|
*
|
October 1, 2037
|
|
N/A
|
|
20,000
|
|
|
2007B1B2
|
*
|
October 1, 2037
|
|
N/A
|
|
20,000
|
|
|
2007B2A1
|
|
October 1, 2037
|
|
October 1, 2019
|
|
30,000
|
|
|
2007B2A2
|
*
|
October 1, 2037
|
|
N/A
|
|
10,000
|
|
|
2007B2B
|
*
|
October 1, 2037
|
|
N/A
|
|
20,000
|
|
|
2010A
|
|
October 1, 2018
|
|
October 1, 2018
|
|
22,980
|
|
|
2010B-1
|
|
October 1, 2040
|
|
October 1, 2017
|
|
70,000
|
|
|
2010B-2
|
*
|
October 1, 2040
|
|
N/A
|
|
30,000
|
|
|
2012
|
*
|
October 1, 2020
|
|
N/A
|
|
22,345
|
|
|
2013A
|
|
September 1, 2033
|
|
N/A
|
|
56,550
|
|
|
2013B
|
|
September 1, 2033
|
|
N/A
|
|
43,450
|
|
|
2013C
|
|
September 1, 2034
|
|
N/A
|
|
37,960
|
|
|
|
|
|
|
|
|
$
|
579,395
|
|
|
|
*Less Treasury bonds held by LOOP
|
|
(212,725
|
)
|
|||
|
|
Total debt
|
|
$
|
366,670
|
|
||
|
|
Less amount due within one year
|
|
(94,710
|
)
|
|||
|
|
Less issuance costs
|
|
(1,866
|
)
|
|||
|
|
|
|
$
|
270,094
|
|
|
|
Six Months Ended June 30,
|
||||||
(in thousands)
|
|
2017
|
|
2016
|
||||
Pension plans
|
|
|
|
|
||||
Service cost
|
|
$
|
1,951
|
|
|
$
|
1,582
|
|
Interest cost
|
|
1,947
|
|
|
1,905
|
|
||
Expected return on assets
|
|
(2,617
|
)
|
|
(2,397
|
)
|
||
Amortization of prior service cost
|
|
—
|
|
|
—
|
|
||
Amortization of actuarial loss
|
|
956
|
|
|
937
|
|
||
Net periodic pension cost
|
|
$
|
2,237
|
|
|
$
|
2,027
|
|
Other postretirement plans
|
|
|
|
|
||||
Service cost
|
|
$
|
370
|
|
|
$
|
307
|
|
Interest cost
|
|
339
|
|
|
332
|
|
||
Expected return on assets
|
|
—
|
|
|
—
|
|
||
Amortization of prior service cost
|
|
—
|
|
|
—
|
|
||
Amortization of actuarial loss
|
|
40
|
|
|
34
|
|
||
Net other postretirement plans cost
|
|
$
|
749
|
|
|
$
|
673
|
|
|
2016
|
|
2015
|
||||
Assets
|
|
|
|
||||
Current assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1,002,365
|
|
|
$
|
638,294
|
|
Receivables from affiliates
|
3,247,030
|
|
|
3,336,662
|
|
||
Receivables from nonaffiliates
|
2,948,358
|
|
|
3,591,567
|
|
||
Materials and supplies
|
1,170,198
|
|
|
1,118,587
|
|
||
Prepayments
|
182,448
|
|
|
89,062
|
|
||
Deferred income taxes
|
—
|
|
|
41,147
|
|
||
Total current assets
|
8,550,399
|
|
|
8,815,319
|
|
||
|
|
|
|
||||
Property, plant, and equipment net of accumulated depreciation
|
39,666,934
|
|
|
37,525,764
|
|
||
Construction in progress
|
5,706,964
|
|
|
3,590,522
|
|
||
Net property, plant, and equipment
|
45,373,898
|
|
|
41,116,286
|
|
||
Other assets
|
1,201,795
|
|
|
224,500
|
|
||
Deferred income taxes
|
67,473
|
|
|
—
|
|
||
Total assets
|
$
|
55,193,565
|
|
|
$
|
50,156,105
|
|
|
|
|
|
||||
Liabilities and Members' Equity
|
|
|
|
||||
Current liabilities
|
|
|
|
||||
Accounts payable and accrued expenses
|
$
|
3,877,326
|
|
|
$
|
2,234,251
|
|
Commercial paper
|
34,986,350
|
|
|
34,497,183
|
|
||
Total current liabilities
|
38,863,676
|
|
|
36,731,434
|
|
||
|
|
|
|
||||
Deferred income taxes
|
9,419,301
|
|
|
9,094,244
|
|
||
Deferred revenue
|
3,841,136
|
|
|
2,105,177
|
|
||
Total liabilities
|
52,124,113
|
|
|
47,930,855
|
|
||
|
|
|
|
||||
Members' equity
|
3,069,452
|
|
|
2,225,250
|
|
||
Total liabilities and members' equity
|
$
|
55,193,565
|
|
|
$
|
50,156,105
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Operating revenue
|
|
|
|
|
|
||||||
Transportation
|
$
|
51,360,264
|
|
|
$
|
49,156,846
|
|
|
$
|
41,981,718
|
|
Rental
|
51,635
|
|
|
56,907
|
|
|
71,343
|
|
|||
Total operating revenue
(Affiliate revenue was approximately $34,897,000, $34,272,000 and $30,541,000 in 2016, 2015 and 2014, respectively)
|
51,411,899
|
|
|
49,213,753
|
|
|
42,053,061
|
|
|||
Operating expenses
|
|
|
|
|
|
||||||
Materials and supplies
|
418,608
|
|
|
279,091
|
|
|
201,352
|
|
|||
Outside services
|
8,734,570
|
|
|
7,460,521
|
|
|
8,482,263
|
|
|||
Fuel and power
|
1,729,429
|
|
|
1,493,434
|
|
|
1,551,996
|
|
|||
Maintenance materials
|
902,136
|
|
|
995,541
|
|
|
812,996
|
|
|||
Rentals
|
760,875
|
|
|
701,450
|
|
|
656,735
|
|
|||
Depreciation
|
1,402,085
|
|
|
1,311,494
|
|
|
1,061,956
|
|
|||
Insurance and uninsured losses
|
16,261
|
|
|
13,564
|
|
|
116,897
|
|
|||
Taxes - other than income
|
3,126,500
|
|
|
2,952,262
|
|
|
2,797,793
|
|
|||
Total operating expenses
(Affiliate expenses were approximately $6,600,000, $5,200,000, and $4,537,000 in 2016, 2015 and 2014, respectively)
|
17,090,464
|
|
|
15,207,357
|
|
|
15,681,988
|
|
|||
Income from operations
|
34,321,435
|
|
|
34,006,396
|
|
|
26,371,073
|
|
|||
Interest
|
|
|
|
|
|
||||||
Income
|
191,325
|
|
|
385,737
|
|
|
125,867
|
|
|||
Expense
|
(619,629
|
)
|
|
(418,511
|
)
|
|
(445,996
|
)
|
|||
Net interest expense
|
(428,304
|
)
|
|
(32,774
|
)
|
|
(320,129
|
)
|
|||
Income before income taxes
|
33,893,131
|
|
|
33,973,622
|
|
|
26,050,944
|
|
|||
Provision for income taxes
|
|
|
|
|
|
||||||
Current
|
12,750,198
|
|
|
12,427,377
|
|
|
8,352,334
|
|
|||
Deferred
|
298,731
|
|
|
646,807
|
|
|
1,673,214
|
|
|||
Tax provision
|
13,048,929
|
|
|
13,074,184
|
|
|
10,025,548
|
|
|||
Net income
|
$
|
20,844,202
|
|
|
$
|
20,899,438
|
|
|
$
|
16,025,396
|
|
Members' equity
|
|
|
|
|
|
||||||
Beginning of year
|
2,225,250
|
|
|
2,325,812
|
|
|
1,800,416
|
|
|||
Distributions
|
(20,000,000
|
)
|
|
(21,000,000
|
)
|
|
(15,500,000
|
)
|
|||
End of year
|
$
|
3,069,452
|
|
|
$
|
2,225,250
|
|
|
$
|
2,325,812
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Cash flows from operating activities
|
|
|
|
|
|
||||||
Net income
|
$
|
20,844,202
|
|
|
$
|
20,899,438
|
|
|
$
|
16,025,396
|
|
Adjustments to reconcile net income to net cash provided by operating activities
|
|
|
|
|
|
||||||
Depreciation
|
1,402,085
|
|
|
1,311,494
|
|
|
1,061,956
|
|
|||
Deferred income taxes
|
298,731
|
|
|
646,807
|
|
|
1,673,214
|
|
|||
Changes in assets and liabilities
|
|
|
|
|
|
||||||
Receivables from affiliates
|
89,632
|
|
|
1,194,778
|
|
|
(1,912,599
|
)
|
|||
Receivables from nonaffiliates
|
643,209
|
|
|
(2,304,104
|
)
|
|
(333,897
|
)
|
|||
Materials and supplies
|
(51,611
|
)
|
|
(221,836
|
)
|
|
(20,995
|
)
|
|||
Prepayments
|
(93,386
|
)
|
|
13,045
|
|
|
58,868
|
|
|||
Other assets
|
(977,295
|
)
|
|
1,161,072
|
|
|
(1,339,168
|
)
|
|||
Accounts payable, accrued expense, other
|
1,085,358
|
|
|
(1,568,620
|
)
|
|
1,357,117
|
|
|||
Deferred revenue
|
1,735,959
|
|
|
(95,690
|
)
|
|
(95,690
|
)
|
|||
Net cash provided by operating activities
|
24,976,884
|
|
|
21,036,384
|
|
|
16,474,202
|
|
|||
Cash flows used in investing activity
|
|
|
|
|
|
||||||
Capital expenditures
|
(4,815,805
|
)
|
|
(5,031,024
|
)
|
|
(6,174,568
|
)
|
|||
Cash flows from financing activities
|
|
|
|
|
|
||||||
Net increase in commercial paper
|
202,992
|
|
|
5,400,834
|
|
|
4,098,641
|
|
|||
Members' distributions
|
(20,000,000
|
)
|
|
(21,000,000
|
)
|
|
(15,500,000
|
)
|
|||
Net cash used in financing activities
|
(19,797,008
|
)
|
|
(15,599,166
|
)
|
|
(11,401,359
|
)
|
|||
Net increase (decrease) in cash and cash equivalents
|
364,071
|
|
|
406,194
|
|
|
(1,101,725
|
)
|
|||
Cash and cash equivalents
|
|
|
|
|
|
||||||
Beginning of year
|
638,294
|
|
|
232,100
|
|
|
1,333,825
|
|
|||
End of year
|
$
|
1,002,365
|
|
|
$
|
638,294
|
|
|
$
|
232,100
|
|
|
|
|
|
|
|
||||||
Noncash transactions
|
|
|
|
|
|
||||||
Capital expenditures included in accounts payable and accrued expenses, net
|
$
|
843,892
|
|
|
$
|
1,069,466
|
|
|
$
|
1,538,829
|
|
|
Useful Life
|
|
December 31
|
||||||
|
(in Years)
|
|
2016
|
|
2015
|
||||
|
|
|
|
|
|
||||
|
|
|
|
|
|
||||
Land
|
N/A
|
|
$
|
1,314,332
|
|
|
$
|
1,314,332
|
|
Rights-of-way
|
30–60
|
|
2,085,408
|
|
|
2,085,408
|
|
||
Line pipe, fittings, and pipeline construction
|
30–60
|
|
111,828,421
|
|
|
109,991,671
|
|
||
Buildings
|
30–60
|
|
4,576,055
|
|
|
4,509,293
|
|
||
Pumping and station equipment, tanks, and delivery
|
30–60
|
|
59,186,685
|
|
|
57,756,211
|
|
||
Communication systems
|
15–30
|
|
1,014,357
|
|
|
861,048
|
|
||
Office furniture, vehicles, and other assets
|
Various
|
|
2,020,157
|
|
|
1,990,211
|
|
||
Construction in progress
|
|
|
5,706,694
|
|
|
3,590,522
|
|
||
|
|
|
$
|
187,732,109
|
|
|
$
|
182,098,696
|
|
Accumulated depreciation
|
|
|
142,358,482
|
|
|
140,982,410
|
|
||
Net Property, plant, and equipment
|
|
|
$
|
45,373,628
|
|
|
$
|
41,116,286
|
|
T&D Obligor
|
|
Percentage
|
|
Marathon Petroleum LP
|
|
58.52
|
%
|
Shell Oil Company
|
|
41.48
|
|
|
|
100.00
|
%
|
|
2016
|
|
2015
|
||||
Property, plant and equipment
|
$
|
10,829,796
|
|
|
$
|
9,863,114
|
|
Deferred revenue - transportation advances
|
(1,477,968
|
)
|
|
(810,017
|
)
|
||
|
$
|
9,351,828
|
|
|
$
|
9,053,097
|
|
(in thousands)
|
|
Operating Leases
|
||
2017
|
|
$
|
331
|
|
2018
|
|
330
|
|
|
2019
|
|
396
|
|
|
2020
|
|
396
|
|
|
2021
|
|
396
|
|
|
Thereafter
|
|
28,000
|
|
|
Total minimum lease payments
|
|
$
|
29,849
|
|
|
June 30
|
|
December 31
|
||||
2017
|
|
2016
|
|||||
Assets
|
|
|
|
||||
Current assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
710,830
|
|
|
$
|
1,002,365
|
|
Receivables from affiliates
|
4,672,261
|
|
|
3,247,030
|
|
||
Receivables from nonaffiliates
|
2,582,576
|
|
|
2,948,358
|
|
||
Materials and supplies
|
1,372,367
|
|
|
1,170,198
|
|
||
Prepayments
|
3,099,261
|
|
|
182,448
|
|
||
Total current assets
|
12,437,295
|
|
|
8,550,399
|
|
||
Property, plant, and equipment net of accumulated depreciation
|
39,832,363
|
|
|
39,666,934
|
|
||
Construction in progress
|
9,990,443
|
|
|
5,706,964
|
|
||
Net property, plant, and equipment
|
49,822,806
|
|
|
45,373,898
|
|
||
Other assets
|
224,666
|
|
|
1,201,795
|
|
||
Total assets
|
$
|
62,484,767
|
|
|
$
|
55,126,092
|
|
Liabilities and Members' Equity
|
|
|
|
||||
Current liabilities
|
|
|
|
||||
Accounts payable and accrued expenses
|
$
|
5,340,053
|
|
|
$
|
3,877,326
|
|
Commercial paper
|
32,957,375
|
|
|
34,986,350
|
|
||
Total current liabilities
|
38,297,428
|
|
|
38,863,676
|
|
||
Deferred income taxes
|
11,020,702
|
|
|
9,351,828
|
|
||
Line of credit
|
4,000,000
|
|
|
—
|
|
||
Deferred revenue
|
3,762,678
|
|
|
3,841,136
|
|
||
Total liabilities
|
57,080,808
|
|
|
52,056,640
|
|
||
Members' equity
|
5,403,959
|
|
|
3,069,452
|
|
||
Total liabilities and members' equity
|
$
|
62,484,767
|
|
|
$
|
55,126,092
|
|
|
Six Months Ended June 30
|
||||||
|
2017
|
|
2016
|
||||
Operating revenue
|
|
|
|
||||
Transportation
|
$
|
26,427,096
|
|
|
$
|
25,207,197
|
|
Rental and other
|
96,534
|
|
|
30,278
|
|
||
Total operating revenue
(Affiliate revenue was approximately $18,892,000 and $16,528,000 in 2017 and 2016, respectively)
|
26,523,630
|
|
|
25,237,475
|
|
||
Operating expenses
|
|
|
|
||||
Materials and supplies
|
235,622
|
|
|
171,887
|
|
||
Outside services
|
2,927,399
|
|
|
3,968,335
|
|
||
Fuel and power
|
1,537,402
|
|
|
743,078
|
|
||
Maintenance materials
|
260,246
|
|
|
414,816
|
|
||
Rentals
|
174,103
|
|
|
183,629
|
|
||
Depreciation
|
773,727
|
|
|
693,672
|
|
||
Insurance and uninsured losses
|
6,804
|
|
|
6,124
|
|
||
Taxes - other than income
|
1,761,572
|
|
|
1,746,678
|
|
||
Total operating expenses
(Affiliate expenses were approximately $4,587,000 and $3,017,000 for 2017 and 2016, respectively)
|
7,676,875
|
|
|
7,928,219
|
|
||
Income from operations
|
18,846,755
|
|
|
17,309,256
|
|
||
Interest
|
|
|
|
||||
Income
|
55,364
|
|
|
106,860
|
|
||
Expense
|
(320,957
|
)
|
|
(316,688
|
)
|
||
Net interest expense
|
(265,593
|
)
|
|
(209,828
|
)
|
||
Income before income taxes
|
18,581,162
|
|
|
17,099,428
|
|
||
Provision for income taxes
|
7,246,655
|
|
|
6,666,239
|
|
||
Net income
|
$
|
11,334,507
|
|
|
$
|
10,433,189
|
|
|
|
|
|
||||
Members' equity
|
|
|
|
||||
Beginning of year
|
$
|
3,069,452
|
|
|
$
|
2,225,250
|
|
Distributions
|
(9,000,000
|
)
|
|
(10,000,000
|
)
|
||
End of period
|
$
|
5,403,959
|
|
|
$
|
2,658,439
|
|
|
Six Months Ended June 30
|
||||||
|
2017
|
|
2016
|
||||
Cash flows from operating activities
|
|
|
|
||||
Net income
|
$
|
11,334,507
|
|
|
$
|
10,433,189
|
|
Adjustments to reconcile net income to net cash provided by operating activities
|
773,727
|
|
|
693,672
|
|
||
Depreciation
|
|
|
|
||||
Deferred income taxes
|
1,668,874
|
|
|
(1,176,869
|
)
|
||
Changes in operating assets and liabilities
|
|
|
|
||||
Receivables from affiliates
|
(1,425,231
|
)
|
|
256,635
|
|
||
Receivables from nonaffiliates
|
365,782
|
|
|
(446,813
|
)
|
||
Materials and supplies
|
(202,169
|
)
|
|
(97,274
|
)
|
||
Prepayments
|
(2,916,813
|
)
|
|
(148,982
|
)
|
||
Deferred Revenue
|
(78,458
|
)
|
|
(47,845
|
)
|
||
Other assets
|
977,129
|
|
|
111,934
|
|
||
Accounts payable, accrued expenses, and other
|
1,915,135
|
|
|
2,577,624
|
|
||
Net cash provided by operating activities
|
12,412,483
|
|
|
12,155,271
|
|
||
Cash flows used in investing activity
|
|
|
|
||||
Capital expenditures
|
(5,675,043
|
)
|
|
(2,409,562
|
)
|
||
Cash flows from financing activities
|
|
|
|
||||
Net increase (decrease) in commercial paper
|
(2,028,975
|
)
|
|
477,773
|
|
||
Increase in line of credit
|
4,000,000
|
|
|
—
|
|
||
Members' distributions
|
(9,000,000
|
)
|
|
(10,000,000
|
)
|
||
Net cash used in financing activities
|
(7,028,975
|
)
|
|
(9,522,227
|
)
|
||
Net increase (decrease) in cash and cash equivalents
|
(291,535
|
)
|
|
223,482
|
|
||
Cash and cash equivalents
|
|
|
|
||||
Beginning of period
|
1,002,365
|
|
|
638,294
|
|
||
End of period
|
$
|
710,830
|
|
|
$
|
861,776
|
|
|
|
|
|
||||
Noncash transactions
|
|
|
|
||||
Capital expenditures included in accounts payable, accrued expenses and other (net)
|
$
|
(452,408
|
)
|
|
$
|
(652,219
|
)
|
|
June 30
|
|
December 31
|
||||
|
2017
|
|
2016
|
||||
|
|
|
|
||||
|
|
|
|
||||
Land and rights-of-way
|
$
|
3,399,740
|
|
|
$
|
3,399,740
|
|
Line pipe, fittings, and pipeline construction
|
111,828,421
|
|
|
111,828,421
|
|
||
Buildings
|
4,576,055
|
|
|
4,576,055
|
|
||
Pumping and station equipment, tanks, and delivery
|
59,186,685
|
|
|
59,186,685
|
|
||
Communication systems
|
1,953,513
|
|
|
1,014,357
|
|
||
Office furniture, vehicles, and other assets
|
2,020,157
|
|
|
2,020,157
|
|
||
Construction in progress
|
9,990,443
|
|
|
5,706,964
|
|
||
|
192,955,014
|
|
|
187,732,379
|
|
||
Accumulated depreciation
|
143,132,208
|
|
|
142,358,481
|
|
||
Net property, plant, and equipment
|
$
|
49,822,806
|
|
|
$
|
45,373,898
|
|
•
|
SAX Interest
- all of the membership interests of Lincoln Pipeline LLC, which holds a 35 percent interest in Illinois Extension Pipeline Company, L.L.C., which owns and operates a 168-mile, 24-inch diameter oil pipeline from Flanagan, Illinois to Patoka, Illinois. The pipeline system has a capacity of 300,000 barrels per day (“Bpd”), as well as additional tankage and two pump stations, collectively referred to as the Southern Access Extension or SAX. The pipeline system was operational in December 2015.
|
•
|
LOOP Interest
- all of the membership interests of MPL Louisiana Holdings LLC, which holds a 40.7 percent interest in LOOP LLC (“LOOP”), which owns and operates midstream crude oil infrastructure, including a deep water oil port offshore of Louisiana, pipelines and onshore storage facilities. The deep water oil port offloads crude oil from crude carrying marine vessels destined for onshore storage and pipeline transport to the LOCAP LLC (“LOCAP”), an affiliate pipeline system, and other connecting carriers for onward delivery to refineries on the U. S. Gulf Coast and the Midwest regions. Additionally, LOOP receives and stores oil for onward transport from various other pipeline connections.
|
•
|
LOCAP Interest
- a 58.52 percent ownership interest in LOCAP, which owns and operates a federally regulated crude oil pipeline and tank facility in St. James, Louisiana that distributes oil received from LOOP storage facilities and other connecting pipelines to nearby refineries and into the mid-continent of the United States.
|
•
|
Explorer Interest
- a 24.51 percent ownership interest in Explorer Pipeline Company, which owns and operates a 1,830-mile refined products pipeline that transports products from the U.S. Gulf Coast to the Midwest, with a current capacity of 660,000 Bpd.
|
(In millions, except per unit data)
|
MPLX LP Historical
|
|
EMI
Historical (a)
|
|
EMI Pro Forma Adjustments
|
|
MPLX LP Pro Forma
|
||||||||
Revenues and other income:
|
|
|
|
|
|
|
|
||||||||
Service revenue
|
$
|
546
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
546
|
|
Service revenue - related parties
|
525
|
|
|
—
|
|
|
—
|
|
|
525
|
|
||||
Rental income
|
139
|
|
|
—
|
|
|
—
|
|
|
139
|
|
||||
Rental income - related parties
|
137
|
|
|
—
|
|
|
—
|
|
|
137
|
|
||||
Product sales
|
394
|
|
|
—
|
|
|
—
|
|
|
394
|
|
||||
Product sales - related parties
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
||||
Gain on sale of assets
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Income from equity method investments
|
6
|
|
|
63
|
|
|
—
|
|
|
69
|
|
||||
Other income
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
||||
Other income - related parties
|
47
|
|
|
—
|
|
|
—
|
|
|
47
|
|
||||
Total revenues and other income
|
1,802
|
|
|
63
|
|
|
—
|
|
|
1,865
|
|
||||
Costs and expenses:
|
|
|
|
|
|
|
|
||||||||
Cost of revenues (excludes items below)
|
252
|
|
|
—
|
|
|
—
|
|
|
252
|
|
||||
Purchased product costs
|
271
|
|
|
—
|
|
|
—
|
|
|
271
|
|
||||
Rental cost of sales
|
25
|
|
|
—
|
|
|
—
|
|
|
25
|
|
||||
Rental cost of sales - related parties
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Purchases - related parties
|
216
|
|
|
—
|
|
|
—
|
|
|
216
|
|
||||
Depreciation and amortization
|
351
|
|
|
—
|
|
|
—
|
|
|
351
|
|
||||
General and administrative expenses
|
115
|
|
|
—
|
|
|
—
|
|
|
115
|
|
||||
Other taxes
|
26
|
|
|
—
|
|
|
—
|
|
|
26
|
|
||||
Total costs and expenses
|
1,257
|
|
|
—
|
|
|
—
|
|
|
1,257
|
|
||||
Income from operations
|
545
|
|
|
63
|
|
|
—
|
|
|
608
|
|
||||
Interest expense
|
140
|
|
|
—
|
|
|
6
|
|
(b)
|
146
|
|
||||
Other financial costs
|
25
|
|
|
—
|
|
|
—
|
|
|
25
|
|
||||
Income (loss) before income taxes
|
380
|
|
|
63
|
|
|
(6
|
)
|
|
437
|
|
||||
Provision for income taxes
|
2
|
|
|
—
|
|
|
—
|
|
(g)
|
2
|
|
||||
Net income (loss)
|
378
|
|
|
63
|
|
|
(6
|
)
|
|
435
|
|
||||
Less: Net income attributable to noncontrolling interests
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||
Less: Net income attributable to Predecessor
|
36
|
|
|
—
|
|
|
—
|
|
|
36
|
|
||||
Net income (loss) attributable to MPLX LP
|
340
|
|
|
63
|
|
|
(6
|
)
|
|
397
|
|
||||
Less: Preferred unit distributions
|
33
|
|
|
|
|
—
|
|
|
33
|
|
|||||
Less: General partner’s interest in net income attributable to MPLX LP
|
136
|
|
|
|
|
3
|
|
(h)
|
139
|
|
|||||
Limited partners’ interest in net income attributable to MPLX LP
|
$
|
171
|
|
|
|
|
$
|
54
|
|
|
$
|
225
|
|
||
Per Unit Data (Note 3)
|
|
|
|
|
|
|
|
||||||||
Net income attributable to MPLX LP per limited partner unit:
|
|
|
|
|
|
|
|
||||||||
Common - basic
|
$
|
0.46
|
|
|
|
|
|
|
$
|
0.57
|
|
||||
Common - diluted
|
0.46
|
|
|
|
|
|
|
0.57
|
|
||||||
Weighted average limited partner units outstanding:
|
|
|
|
|
|
|
|
||||||||
Common - basic
|
370
|
|
|
|
|
19
|
|
|
389
|
|
|||||
Common - diluted
|
374
|
|
|
|
|
19
|
|
|
393
|
|
(In millions, except per unit data)
|
MPLX LP
Historical
|
|
EMI
Historical (a)
|
|
EMI
Pro Forma Adjustments |
|
MPLX LP
Pro Forma
|
||||||||
Revenues and other income:
|
|
|
|
|
|
|
|
||||||||
Service revenue
|
$
|
958
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
958
|
|
Service revenue - related parties
|
936
|
|
|
—
|
|
|
—
|
|
|
936
|
|
||||
Rental income
|
298
|
|
|
—
|
|
|
—
|
|
|
298
|
|
||||
Rental income - related parties
|
235
|
|
|
—
|
|
|
—
|
|
|
235
|
|
||||
Product sales
|
572
|
|
|
—
|
|
|
—
|
|
|
572
|
|
||||
Product sales - related parties
|
11
|
|
|
—
|
|
|
—
|
|
|
11
|
|
||||
Gain on sale of assets
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
(Loss) income from equity method investments
|
(74
|
)
|
|
114
|
|
|
—
|
|
|
40
|
|
||||
Other income
|
6
|
|
|
—
|
|
|
—
|
|
|
6
|
|
||||
Other income - related parties
|
86
|
|
|
—
|
|
|
—
|
|
|
86
|
|
||||
Total revenues and other income
|
3,029
|
|
|
114
|
|
|
—
|
|
|
3,143
|
|
||||
Costs and expenses:
|
|
|
|
|
|
|
|
||||||||
Cost of revenues (excludes items below)
|
454
|
|
|
—
|
|
|
—
|
|
|
454
|
|
||||
Purchased product costs
|
448
|
|
|
—
|
|
|
—
|
|
|
448
|
|
||||
Rental cost of sales
|
57
|
|
|
—
|
|
|
—
|
|
|
57
|
|
||||
Rental cost of sales - related parties
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Purchases - related parties
|
388
|
|
|
—
|
|
|
—
|
|
|
388
|
|
||||
Depreciation and amortization
|
591
|
|
|
—
|
|
|
—
|
|
|
591
|
|
||||
Impairment expense
|
130
|
|
|
—
|
|
|
—
|
|
|
130
|
|
||||
General and administrative expenses
|
227
|
|
|
—
|
|
|
—
|
|
|
227
|
|
||||
Other taxes
|
50
|
|
|
—
|
|
|
—
|
|
|
50
|
|
||||
Total costs and expenses
|
2,346
|
|
|
—
|
|
|
—
|
|
|
2,346
|
|
||||
Income from operations
|
683
|
|
|
114
|
|
|
—
|
|
|
797
|
|
||||
Related party interest and other financial (income) costs
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Interest expense
|
210
|
|
|
—
|
|
|
11
|
|
(b)
|
221
|
|
||||
Other financial costs
|
50
|
|
|
—
|
|
|
—
|
|
|
50
|
|
||||
Income (loss) before income taxes
|
422
|
|
|
114
|
|
|
(11
|
)
|
|
525
|
|
||||
(Benefit) provision for income taxes
|
(12
|
)
|
|
—
|
|
|
2
|
|
(g)
|
(10
|
)
|
||||
Net income (loss)
|
434
|
|
|
114
|
|
|
(13
|
)
|
|
535
|
|
||||
Less: Net income attributable to noncontrolling interests
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||
Less: Net income attributable to Predecessor
|
199
|
|
|
—
|
|
|
—
|
|
|
199
|
|
||||
Net income attributable to MPLX LP
|
233
|
|
|
114
|
|
|
(13
|
)
|
|
334
|
|
||||
Less: Preferred unit distributions
|
41
|
|
|
|
|
—
|
|
|
41
|
|
|||||
Less: General partner’s interest in net income attributable to MPLX LP
|
191
|
|
|
|
|
9
|
|
(h)
|
200
|
|
|||||
Limited partners’ interest in net income attributable to MPLX LP
|
$
|
1
|
|
|
|
|
$
|
92
|
|
|
$
|
93
|
|
||
Per Unit Data (Note 3)
|
|
|
|
|
|
|
|
||||||||
Net income attributable to MPLX LP per limited partner unit:
|
|
|
|
|
|
|
|
||||||||
Common - basic
|
$
|
—
|
|
|
|
|
|
|
$
|
0.25
|
|
||||
Common - diluted
|
—
|
|
|
|
|
|
|
0.25
|
|
||||||
Weighted average limited partner units outstanding:
|
|
|
|
|
|
|
|
||||||||
Common - basic
|
331
|
|
|
|
|
19
|
|
|
350
|
|
|||||
Common - diluted
|
338
|
|
|
|
|
19
|
|
|
357
|
|
(In millions, except per unit data)
|
MPLX LP
Historical
|
|
EMI Historical (a)
|
|
EMI Pro Forma
Adjustments |
|
MPLX LP
Pro Forma
|
||||||||
Revenues and other income:
|
|
|
|
|
|
|
|
||||||||
Service revenue
|
$
|
130
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
130
|
|
Service revenue - related parties
|
701
|
|
|
—
|
|
|
—
|
|
|
701
|
|
||||
Rental income
|
20
|
|
|
—
|
|
|
—
|
|
|
20
|
|
||||
Rental income - related parties
|
146
|
|
|
—
|
|
|
—
|
|
|
146
|
|
||||
Product sales
|
36
|
|
|
—
|
|
|
—
|
|
|
36
|
|
||||
Product sales - related parties
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Income (loss) from equity method investments
|
3
|
|
|
70
|
|
|
—
|
|
|
73
|
|
||||
Other income
|
6
|
|
|
—
|
|
|
—
|
|
|
6
|
|
||||
Other income - related parties
|
58
|
|
|
—
|
|
|
—
|
|
|
58
|
|
||||
Total revenues and other income
|
1,101
|
|
|
70
|
|
|
—
|
|
|
1,171
|
|
||||
Costs and expenses:
|
|
|
|
|
|
|
|
||||||||
Cost of revenues (excludes items below)
|
247
|
|
|
—
|
|
|
—
|
|
|
247
|
|
||||
Purchased product costs
|
20
|
|
|
—
|
|
|
—
|
|
|
20
|
|
||||
Rental cost of sales
|
11
|
|
|
—
|
|
|
—
|
|
|
11
|
|
||||
Rental cost of sales - related parties
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Purchases - related parties
|
172
|
|
|
—
|
|
|
—
|
|
|
172
|
|
||||
Depreciation and amortization
|
129
|
|
|
—
|
|
|
—
|
|
|
129
|
|
||||
Impairment expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
General and administrative expenses
|
125
|
|
|
—
|
|
|
—
|
|
|
125
|
|
||||
Other taxes
|
15
|
|
|
—
|
|
|
—
|
|
|
15
|
|
||||
Total costs and expenses
|
720
|
|
|
—
|
|
|
—
|
|
|
720
|
|
||||
Income from operations
|
381
|
|
|
70
|
|
|
—
|
|
|
451
|
|
||||
Debt retirement expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Interest expense
|
35
|
|
|
—
|
|
|
11
|
|
(b)
|
46
|
|
||||
Other financial costs
|
12
|
|
|
—
|
|
|
—
|
|
|
12
|
|
||||
Income (loss) before income taxes
|
334
|
|
|
70
|
|
|
(11
|
)
|
|
393
|
|
||||
Provision (Benefit) for income taxes
|
1
|
|
|
—
|
|
|
—
|
|
(g)
|
1
|
|
||||
Net income (loss)
|
333
|
|
|
70
|
|
|
(11
|
)
|
|
392
|
|
||||
Less: Net income attributable to noncontrolling interests
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Less: Net income attributable to Predecessor
|
176
|
|
|
—
|
|
|
—
|
|
|
176
|
|
||||
Net income (loss) attributable to MPLX LP
|
156
|
|
|
70
|
|
|
(11
|
)
|
|
215
|
|
||||
Less: General partner’s interest in net income attributable to MPLX LP
|
57
|
|
|
|
|
6
|
|
(h)
|
63
|
|
|||||
Limited partners’ interest in net income attributable to MPLX LP
|
$
|
99
|
|
|
|
|
|
$
|
53
|
|
|
$
|
152
|
|
|
Per Unit Data (Note 3)
|
|
|
|
|
|
|
|
||||||||
Net income attributable to MPLX LP per limited partner unit:
|
|
|
|
|
|
|
|
||||||||
Common - basic
|
$
|
1.23
|
|
|
|
|
|
|
$
|
1.44
|
|
||||
Common - diluted
|
1.22
|
|
|
|
|
|
|
1.43
|
|
||||||
Subordinated - basic and diluted
|
0.11
|
|
|
|
|
|
|
0.51
|
|
||||||
Weighted average limited partner units outstanding:
|
|
|
|
|
|
|
|
||||||||
Common - basic
|
79
|
|
|
|
|
19
|
|
|
98
|
|
|||||
Common - diluted
|
80
|
|
|
|
|
19
|
|
|
99
|
|
|||||
Subordinated - basic and diluted
|
18
|
|
|
|
|
—
|
|
|
18
|
|
(In millions, except per unit data)
|
MPLX LP
Historical
|
|
EMI
Historical (a)
|
|
EMI
Pro Forma
Adjustments
|
|
MPLX LP
Pro Forma
|
||||||||
Revenues and other income:
|
|
|
|
|
|
|
|
||||||||
Service revenue
|
$
|
70
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
70
|
|
Service revenue - related parties
|
662
|
|
|
—
|
|
|
—
|
|
|
662
|
|
||||
Rental income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Rental income - related parties
|
15
|
|
|
—
|
|
|
—
|
|
|
15
|
|
||||
Product sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Product sales - related parties
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Income from equity method investments
|
—
|
|
|
61
|
|
|
—
|
|
|
61
|
|
||||
Other income
|
6
|
|
|
—
|
|
|
—
|
|
|
6
|
|
||||
Other income - related parties
|
40
|
|
|
—
|
|
|
—
|
|
|
40
|
|
||||
Total revenues and other income
|
793
|
|
|
61
|
|
|
—
|
|
|
854
|
|
||||
Costs and expenses:
|
|
|
|
|
|
|
|
||||||||
Cost of revenues (excludes items below)
|
228
|
|
|
—
|
|
|
—
|
|
|
228
|
|
||||
Purchased product costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Rental cost of sales
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Rental cost of sales - related parties
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Purchases - related parties
|
153
|
|
|
—
|
|
|
—
|
|
|
153
|
|
||||
Depreciation and amortization
|
75
|
|
|
—
|
|
|
—
|
|
|
75
|
|
||||
Impairment expense
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|||||
General and administrative expenses
|
81
|
|
|
—
|
|
|
—
|
|
|
81
|
|
||||
Other taxes
|
10
|
|
|
—
|
|
|
—
|
|
|
10
|
|
||||
Total costs and expenses
|
548
|
|
|
—
|
|
|
—
|
|
|
548
|
|
||||
Income from operations
|
245
|
|
|
61
|
|
|
—
|
|
|
306
|
|
||||
Debt retirement expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Related party interest and other financial costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Interest expense
|
4
|
|
|
—
|
|
|
11
|
|
(b)
|
15
|
|
||||
Other financial costs
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Income (loss) before income taxes
|
240
|
|
|
61
|
|
|
(11
|
)
|
|
290
|
|
||||
Provision for income taxes
|
1
|
|
|
—
|
|
|
—
|
|
(g)
|
1
|
|
||||
Net income (loss)
|
239
|
|
|
61
|
|
|
(11
|
)
|
|
289
|
|
||||
Less: Net income attributable to noncontrolling interests
|
57
|
|
|
—
|
|
|
—
|
|
|
57
|
|
||||
Less: Net income attributable to Predecessor
|
61
|
|
|
—
|
|
|
—
|
|
|
61
|
|
||||
Net income (loss) attributable to MPLX LP
|
121
|
|
|
61
|
|
|
(11
|
)
|
|
171
|
|
||||
Less: General partner’s interest in net income attributable to MPLX LP
|
6
|
|
|
|
|
2
|
|
(h)
|
8
|
|
|||||
Limited partners’ interest in net income attributable to MPLX LP
|
$
|
115
|
|
|
|
|
|
$
|
48
|
|
|
$
|
163
|
|
|
Per Unit Data (Note 3)
|
|
|
|
|
|
|
|
||||||||
Net income attributable to MPLX LP per limited partner unit:
|
|
|
|
|
|
|
|
||||||||
Common - basic
|
$
|
1.55
|
|
|
|
|
|
|
$
|
1.65
|
|
||||
Common - diluted
|
1.55
|
|
|
|
|
|
|
1.64
|
|
||||||
Subordinated - basic and diluted
|
1.50
|
|
|
|
|
|
|
1.65
|
|
||||||
Weighted average limited partner units outstanding:
|
|
|
|
|
|
|
|
||||||||
Common - basic
|
37
|
|
|
|
|
19
|
|
|
56
|
|
|||||
Common - diluted
|
37
|
|
|
|
|
19
|
|
|
56
|
|
|||||
Subordinated - basic and diluted
|
37
|
|
|
|
|
—
|
|
|
37
|
|
(In millions)
|
MPLX LP
Historical
|
|
EMI
Historical (a)
|
|
EMI
Pro Forma Adjustments
|
|
MPLX LP Pro Forma
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Current assets:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
293
|
|
|
$
|
—
|
|
|
$
|
420
|
|
(b)
|
$
|
293
|
|
|
|
|
|
|
(420
|
)
|
(c)
|
|
|||||||
Receivables, net
|
284
|
|
|
—
|
|
|
—
|
|
|
284
|
|
||||
Receivables - related parties
|
173
|
|
|
—
|
|
|
—
|
|
|
173
|
|
||||
Inventories
|
62
|
|
|
—
|
|
|
—
|
|
|
62
|
|
||||
Other current assets
|
31
|
|
|
—
|
|
|
—
|
|
|
31
|
|
||||
Total current assets
|
843
|
|
|
—
|
|
|
—
|
|
|
843
|
|
||||
Equity method investments
|
3,368
|
|
|
644
|
|
|
—
|
|
|
4,012
|
|
||||
Property, plant and equipment, net
|
11,638
|
|
|
—
|
|
|
—
|
|
|
11,638
|
|
||||
Intangibles, net
|
473
|
|
|
—
|
|
|
—
|
|
|
473
|
|
||||
Goodwill
|
2,245
|
|
|
—
|
|
|
—
|
|
|
2,245
|
|
||||
Long-term receivables - related parties
|
16
|
|
|
—
|
|
|
—
|
|
|
16
|
|
||||
Other noncurrent assets
|
18
|
|
|
—
|
|
|
—
|
|
|
18
|
|
||||
Total assets
|
$
|
18,601
|
|
|
$
|
644
|
|
|
$
|
—
|
|
|
$
|
19,245
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Current liabilities:
|
|
|
|
|
|
|
|
||||||||
Accounts payable
|
$
|
144
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
144
|
|
Accrued liabilities
|
178
|
|
|
—
|
|
|
—
|
|
|
178
|
|
||||
Payables - related parties
|
93
|
|
|
—
|
|
|
—
|
|
|
93
|
|
||||
Deferred revenue
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
||||
Deferred revenue - related parties
|
39
|
|
|
—
|
|
|
—
|
|
|
39
|
|
||||
Accrued property, plant and equipment
|
171
|
|
|
—
|
|
|
—
|
|
|
171
|
|
||||
Accrued taxes
|
39
|
|
|
—
|
|
|
—
|
|
|
39
|
|
||||
Accrued interest payable
|
94
|
|
|
—
|
|
|
—
|
|
|
94
|
|
||||
Other current liabilities
|
29
|
|
|
—
|
|
|
—
|
|
|
29
|
|
||||
Total current liabilities
|
790
|
|
|
—
|
|
|
—
|
|
|
790
|
|
||||
Long-term deferred revenue
|
26
|
|
|
—
|
|
|
—
|
|
|
26
|
|
||||
Long-term deferred revenue - related parties
|
33
|
|
|
—
|
|
|
—
|
|
|
33
|
|
||||
Long-term debt
|
6,666
|
|
|
—
|
|
|
420
|
|
(b)
|
7,086
|
|
||||
Deferred income taxes
|
7
|
|
|
—
|
|
|
—
|
|
(g)
|
7
|
|
||||
Deferred credits and other liabilities
|
170
|
|
|
—
|
|
|
—
|
|
|
170
|
|
||||
Total liabilities
|
7,692
|
|
|
—
|
|
|
420
|
|
|
8,112
|
|
||||
Commitments and contingencies
|
|
|
|
|
|
|
|
||||||||
Redeemable preferred units
|
1,000
|
|
|
—
|
|
|
—
|
|
|
1,000
|
|
||||
Equity
|
|
|
|
|
|
|
|
||||||||
Common unitholders - public
|
8,360
|
|
|
—
|
|
|
—
|
|
|
8,360
|
|
||||
Class B unitholders
|
133
|
|
|
—
|
|
|
—
|
|
|
133
|
|
||||
Common unitholder - MPC
|
1,161
|
|
|
—
|
|
|
617
|
|
(d)
|
1,778
|
|
||||
Common unitholder - GP
|
351
|
|
|
—
|
|
|
13
|
|
(d)
|
364
|
|
||||
General partner - MPC
|
(242
|
)
|
|
—
|
|
|
(406
|
)
|
(e)
|
(648
|
)
|
||||
Net investment
|
—
|
|
|
644
|
|
|
(644
|
)
|
(f)
|
—
|
|
||||
Total MPLX LP partners’ capital
|
9,763
|
|
|
644
|
|
|
(420
|
)
|
|
9,987
|
|
||||
Noncontrolling interest
|
146
|
|
|
—
|
|
|
—
|
|
|
146
|
|
||||
Total equity
|
9,909
|
|
|
644
|
|
|
(420
|
)
|
|
10,133
|
|
||||
Total liabilities, preferred units and equity
|
$
|
18,601
|
|
|
$
|
644
|
|
|
$
|
—
|
|
|
$
|
19,245
|
|
(a)
|
Adjustments reflect the acquisition of the SAX Interest of $298 million, the LOOP Interest of $229 million, the LOCAP Interest of $23 million, and the Explorer Interest of $94 million, totaling $644 million at MPC's historical cost as of June 30, 2017. Adjustments also reflect the associated equity income for the periods presented. The Partnership’s accounting policy is to record its share of the results of the Equity Method Investments, and any related amortization expense and related tax impact, one month in arrears within
Income from Equity Method Investments
in the consolidated statements of income. The equity earnings are as follows:
|
(in millions)
|
Six Months Ended June 30, 2017
|
Year Ended December 31, 2016
|
Year Ended December 31, 2015
|
Year Ended December 31, 2014
|
||||||||
SAX Interest
(1)
|
12
|
|
25
|
|
—
|
|
—
|
|
||||
LOOP Interest
|
30
|
|
45
|
|
34
|
|
36
|
|
||||
LOCAP Interest
|
7
|
|
12
|
|
11
|
|
8
|
|
||||
Explorer Interest
|
14
|
|
32
|
|
25
|
|
17
|
|
||||
Income from equity method investments
|
$
|
63
|
|
$
|
114
|
|
$
|
70
|
|
$
|
61
|
|
(b)
|
Adjustment to reflect proceeds from MPLX's borrowings of $420 million under the bank revolving credit facility, which bears interest at 2.70 percent and is due 2022, intended to fund the Cash Consideration of the Acquisition. Adjustment to reflect the associated interest expense of $6 million for the six months ended June 30, 2017 and $11 million for each of the years ended December 31, 2016, 2015 and 2014.
|
(c)
|
Adjustment to reflect the $420 million cash payment made to MPC in connection with the Acquisition.
|
(d)
|
Adjustment to reflect the issuance of 18,628,930 common units and 380,182 general partner units to MPC in connection with the Acquisition. Pro forma equity adjustments include increases to common unitholder - MPC and General partner - MPC of $617 million and $13 million, respectively.
|
(e)
|
The Partnership recorded its acquired interest in the Equity Method Investments at their historical carrying values and the excess consideration paid over the historical carrying values as a decrease to general partner equity. The unaudited
|
(f)
|
Adjustment to reflect the elimination of MPC's combined net investment in the SAX Interest, LOOP Interest, LOCAP Interest, and Explorer Interest at June 30, 2017, of $644 million.
|
(g)
|
Adjustment to reflect the estimated additional provision of $2 million for the year ended December 31, 2016 for income taxes associated with the Acquisition. There are no tax consequences related to the Equity Method Investments' for the six months ended June 30, 2017 or the years ended December 31, 2015 or 2014.
|
(h)
|
Adjustment to reflect the net income attributable to the general partner, including distributions related to the General Partner's IDRs, to give effect to the Acquisition. The adjustment reflects the combined MPLX and the Equity Method Investments' historical cash distributions allocated per the terms of MPLX's partnership agreement.
|
(in millions; except exchange ratio)
|
Six Months Ended
June 30, 2017 |
|
Year Ended
December 31, 2016
|
|
Year Ended
December 31, 2015
|
|
Year Ended
December 31, 2014 |
||||
Common Units per the Contributions Agreement - basic
|
19
|
|
|
19
|
|
|
19
|
|
|
19
|
|
MPLX weighted average common units outstanding - basic
|
370
|
|
|
331
|
|
|
79
|
|
|
37
|
|
Pro forma MPLX weighted average common units outstanding - basic
|
389
|
|
|
350
|
|
|
98
|
|
|
56
|
|
|
|
|
|
|
|
|
|
||||
Common Units per the Contributions Agreement - diluted
|
19
|
|
|
19
|
|
|
19
|
|
|
19
|
|
MPLX weighted average common units outstanding - diluted
|
374
|
|
|
338
|
|
|
80
|
|
|
37
|
|
Pro forma MPLX weighted average common units outstanding - diluted
|
393
|
|
|
357
|
|
|
99
|
|
|
56
|
|
|
June 30, 2017
|
||||||||||
(in millions; except per unit data)
|
General Partner
|
|
Limited Partners'
Common Units |
|
Total
|
||||||
Basic and diluted earnings per unit:
|
|
|
|
|
|
||||||
Allocation of earnings:
|
|
|
|
|
|
||||||
Income attributable to MPLX LP
|
|
|
|
|
$
|
397
|
|
||||
Distribution declared on Preferred units
|
|
|
|
|
33
|
|
|||||
Income allocated to participating securities
|
|
|
|
|
—
|
|
|||||
Income available to unitholders
|
|
|
|
|
$
|
364
|
|
||||
|
|
|
|
|
|
||||||
Pro forma distributions declared (including IDRs)
|
$
|
145
|
|
|
$
|
427
|
|
|
$
|
572
|
|
Pro forma distributions greater than net income
|
|
|
|
|
|
||||||
attributable to MPLX LP
|
(4
|
)
|
|
(204
|
)
|
|
(208
|
)
|
|||
Net income attributable to MPLX LP
|
|
|
|
|
|
||||||
unitholders - basic
|
$
|
141
|
|
|
$
|
223
|
|
|
$
|
364
|
|
|
|
|
|
|
|
||||||
Pro forma weighted average units outstanding - basic
|
|
|
389
|
|
|
|
|||||
Pro forma weighted average units outstanding - diluted
|
|
|
393
|
|
|
|
|||||
Pro forma net income attributable to MPLX LP per
|
|
|
|
|
|
||||||
Limited partner unit - basic
|
|
|
$
|
0.57
|
|
|
|
||||
Pro forma net income attributable to MPLX LP per
|
|
|
|
|
|
||||||
Limited partner unit - diluted
|
|
|
$
|
0.57
|
|
|
|
|
December 31, 2016
|
||||||||||
(in millions; except per unit data)
|
General Partner
|
|
Limited Partners'
Common Units
|
|
Total
|
||||||
Basic and diluted earnings per unit:
|
|
|
|
|
|
||||||
Allocation of earnings:
|
|
|
|
|
|
||||||
Income attributable to MPLX LP
|
|
|
|
|
$
|
334
|
|
||||
Distribution declared on Preferred units
|
|
|
|
|
41
|
|
|||||
Income allocated to participating securities
|
|
|
|
|
1
|
|
|||||
Income available to unitholders
|
|
|
|
|
$
|
292
|
|
||||
|
|
|
|
|
|
||||||
Pro forma distributions declared (including IDRs)
|
$
|
217
|
|
|
$
|
731
|
|
|
$
|
948
|
|
Pro forma distributions greater than net income
|
|
|
|
|
|
||||||
attributable to MPLX LP
|
(13
|
)
|
|
(643
|
)
|
|
(656
|
)
|
|||
Net income attributable to MPLX LP
|
|
|
|
|
|
||||||
unitholders - basic
|
$
|
204
|
|
|
$
|
88
|
|
|
$
|
292
|
|
|
|
|
|
|
|
||||||
Pro forma weighted average units outstanding - basic
|
|
|
350
|
|
|
|
|||||
Pro forma weighted average units outstanding - diluted
|
|
|
357
|
|
|
|
|||||
Pro forma net income attributable to MPLX LP per
|
|
|
|
|
|
||||||
Limited partner unit - basic
|
|
|
$
|
0.25
|
|
|
|
||||
Pro forma net income attributable to MPLX LP per
|
|
|
|
|
|
||||||
Limited partner unit - diluted
|
|
|
$
|
0.25
|
|
|
|
|
December 31, 2015
|
||||||||||||||
(in millions; except per unit data)
|
General Partner
|
|
Limited Partners'
Common Units
|
|
Limited Partner
Subordinated Units
|
|
Total
|
||||||||
Basic and diluted earnings per unit:
|
|
|
|
|
|
|
|
||||||||
Allocation of earnings:
|
|
|
|
|
|
|
|
||||||||
Income attributable to MPLX LP
|
|
|
|
|
|
|
$
|
215
|
|
||||||
Income allocated to participating securities
|
|
|
|
|
|
|
1
|
|
|||||||
Income available to unitholders
|
|
|
|
|
|
|
$
|
214
|
|
||||||
|
|
|
|
|
|
|
|
||||||||
Pro forma distributions declared (including IDRs)
|
$
|
68
|
|
|
$
|
257
|
|
|
$
|
31
|
|
|
$
|
356
|
|
Pro forma distributions greater than net income
|
|
|
|
|
|
|
|
||||||||
attributable to MPLX LP
|
(3
|
)
|
|
(117
|
)
|
|
(22
|
)
|
|
(142
|
)
|
||||
Net income attributable to MPLX LP
|
|
|
|
|
|
|
|
||||||||
unitholders - basic
|
$
|
65
|
|
|
$
|
140
|
|
|
$
|
9
|
|
|
$
|
214
|
|
|
|
|
|
|
|
|
|
||||||||
Pro forma weighted average units outstanding - basic
|
|
|
98
|
|
|
18
|
|
|
|
||||||
Pro forma weighted average units outstanding - diluted
|
|
|
99
|
|
|
18
|
|
|
|
||||||
Pro forma net income attributable to MPLX LP per
|
|
|
|
|
|
|
|
||||||||
Limited partner unit - basic
|
|
|
$
|
1.44
|
|
|
$
|
0.51
|
|
|
|
||||
Pro forma net income attributable to MPLX LP per
|
|
|
|
|
|
|
|
||||||||
Limited partner unit - diluted
|
|
|
$
|
1.43
|
|
|
$
|
0.51
|
|
|
|
|
December 31, 2014
|
||||||||||||||
(in millions; except per unit data)
|
General Partner
|
|
Limited Partners'
Common Units |
|
Limited Partner
Subordinated Units |
|
Total
|
||||||||
Basic and diluted earnings per unit:
|
|
|
|
|
|
|
|
||||||||
Allocation of earnings:
|
|
|
|
|
|
|
|
||||||||
Income attributable to MPLX LP
|
|
|
|
|
|
|
$
|
171
|
|
||||||
Income allocated to participating securities
|
|
|
|
|
|
|
—
|
|
|||||||
Income available to unitholders
|
|
|
|
|
|
|
$
|
171
|
|
||||||
|
|
|
|
|
|
|
|
||||||||
Pro forma distributions declared (including IDRs)
|
$
|
7
|
|
|
$
|
81
|
|
|
$
|
52
|
|
|
$
|
140
|
|
Pro forma undistributed net income
|
|
|
|
|
|
|
|
||||||||
attributable to MPLX LP
|
11
|
|
|
11
|
|
|
9
|
|
|
31
|
|
||||
Net income attributable to MPLX LP
|
|
|
|
|
|
|
|
||||||||
unitholders - basic
|
$
|
18
|
|
|
$
|
92
|
|
|
$
|
61
|
|
|
$
|
171
|
|
|
|
|
|
|
|
|
|
||||||||
Pro forma weighted average units outstanding - basic
|
|
|
56
|
|
|
37
|
|
|
|
||||||
Pro forma weighted average units outstanding - diluted
|
|
|
56
|
|
|
37
|
|
|
|
||||||
Pro forma net income attributable to MPLX LP per
|
|
|
|
|
|
|
|
||||||||
Limited partner unit - basic
|
|
|
$
|
1.65
|
|
|
$
|
1.65
|
|
|
|
||||
Pro forma net income attributable to MPLX LP per
|
|
|
|
|
|
|
|
||||||||
Limited partner unit - diluted
|
|
|
$
|
1.64
|
|
|
$
|
1.65
|
|
|
|