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þ
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the quarterly period ended June 30, 2016
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from _____ to _____
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Delaware
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46-3205923
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(State or other jurisdiction of
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(I.R.S. Employer
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incorporation or organization)
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Identification No.)
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123 W. Mills Avenue., Suite 200
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79901
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El Paso, Texas
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(Zip Code)
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(Address of principal executive offices)
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Large accelerated filer
o
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Accelerated filer
þ
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Non-accelerated filer
o
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Smaller reporting company
o
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EX-10.1
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EX-31.1
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EX-31.2
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EX-32.1
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EX-32.2
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EX-101
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•
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changes in the business strategy or activity levels of Western that may be impacted by a variety of factors, including changes in crack spreads, changes in the spread between West Texas Intermediate ("WTI") crude oil and West Texas Sour ("WTS") crude oil, also known as the sweet/sour spread and changes in the spread between WTI crude oil and Dated Brent crude oil and between WTI Cushing crude oil and WTI Midland crude oil, and Western's post-merger integration with Northern Tier Energy LP;
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•
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changes in general economic conditions, including the price volatility of crude oil;
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•
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competitive conditions in our industry;
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•
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actions taken by third-party operators, processors and transporters;
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•
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the demand for crude oil, refined and other products and transportation and storage services;
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•
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the supply of crude oil in the regions in which we and Western operate;
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•
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interest rates;
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•
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labor relations;
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•
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changes in the availability and cost of capital;
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•
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changes in tax status;
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•
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operating hazards, natural disasters, weather-related delays, casualty losses and other matters, including those that may result in a force majeure event under our commercial agreements with Western, that may be beyond our control;
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•
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the effects of existing and future laws and governmental regulations and the manner in which they are interpreted and implemented;
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•
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changes in insurance markets impacting costs and the level and types of coverage available;
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•
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disruptions due to equipment interruption or failure at our facilities, Western’s facilities or third-party facilities on which our business is dependent;
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•
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our ability to successfully implement our business plan;
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•
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the effects of future litigation; and
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•
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other factors discussed in more detail herein and under
Part I. — Item 1A. Risk Factors
in our Annual Report on Form 10-K for the year ended
December 31, 2015
, that are incorporated herein by this reference.
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Item 1.
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Financial Statements
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|
June 30,
2016 |
|
December 31,
2015 |
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
17,562
|
|
|
$
|
44,605
|
|
Accounts receivable:
|
|
|
|
||||
Affiliate
|
47,156
|
|
|
44,014
|
|
||
Third-party, net of a reserve for doubtful accounts of $232 and $106, respectively
|
62,177
|
|
|
55,053
|
|
||
Inventories
|
10,578
|
|
|
15,200
|
|
||
Prepaid expenses
|
4,672
|
|
|
4,133
|
|
||
Other current assets
|
4,487
|
|
|
5,562
|
|
||
Assets held for sale
|
5,616
|
|
|
—
|
|
||
Total current assets
|
152,248
|
|
|
168,567
|
|
||
Property, plant and equipment, net
|
320,493
|
|
|
321,251
|
|
||
Intangible assets, net
|
7,111
|
|
|
7,757
|
|
||
Other assets
|
3,369
|
|
|
3,376
|
|
||
Total assets
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$
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483,221
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$
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500,951
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LIABILITIES AND EQUITY
|
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||||
Current liabilities:
|
|
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|
||||
Accounts payable:
|
|
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|
||||
Affiliate
|
$
|
110,650
|
|
|
$
|
92,031
|
|
Third-party
|
9,310
|
|
|
9,489
|
|
||
Accrued liabilities
|
33,018
|
|
|
30,378
|
|
||
Total current liabilities
|
152,978
|
|
|
131,898
|
|
||
Long-term liabilities:
|
|
|
|
||||
Long-term debt
|
313,152
|
|
|
437,467
|
|
||
Other liabilities
|
9
|
|
|
9
|
|
||
Total long-term liabilities
|
313,161
|
|
|
437,476
|
|
||
Commitments and contingencies
|
|
|
|
|
|
||
Equity (Deficit):
|
|
|
|
||||
General Partner
|
(2,767
|
)
|
|
(1,085
|
)
|
||
TexNew Mex unitholders (80,000 units issued and outstanding)
|
(310
|
)
|
|
(310
|
)
|
||
Common unitholders - Public (20,225,957 and 15,866,761 units issued and outstanding, respectively)
|
418,786
|
|
|
327,351
|
|
||
Common unitholders - Western (8,579,623 units issued and outstanding)
|
(106,252
|
)
|
|
(105,090
|
)
|
||
Subordinated unitholders - Western (22,811,000 units issued and outstanding)
|
(292,375
|
)
|
|
(289,289
|
)
|
||
Total equity (deficit)
|
17,082
|
|
|
(68,423
|
)
|
||
Total liabilities and equity
|
$
|
483,221
|
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|
$
|
500,951
|
|
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Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Fee based:
|
|
|
|
|
|
|
|
||||||||
Affiliate
|
$
|
53,965
|
|
|
$
|
47,465
|
|
|
$
|
105,893
|
|
|
$
|
92,943
|
|
Third-party
|
677
|
|
|
679
|
|
|
1,367
|
|
|
1,302
|
|
||||
Sales based:
|
|
|
|
|
|
|
|
||||||||
Affiliate
|
126,525
|
|
|
164,576
|
|
|
224,054
|
|
|
297,347
|
|
||||
Third-party
|
397,435
|
|
|
523,184
|
|
|
715,327
|
|
|
951,708
|
|
||||
Total revenues
|
578,602
|
|
|
735,904
|
|
|
1,046,641
|
|
|
1,343,300
|
|
||||
Operating costs and expenses:
|
|
|
|
|
|
|
|
||||||||
Cost of products sold:
|
|
|
|
|
|
|
|
||||||||
Affiliate
|
123,870
|
|
|
162,191
|
|
|
219,019
|
|
|
292,699
|
|
||||
Third-party
|
380,386
|
|
|
501,835
|
|
|
680,827
|
|
|
913,028
|
|
||||
Operating and maintenance expenses
|
37,574
|
|
|
38,058
|
|
|
76,475
|
|
|
74,429
|
|
||||
Selling, general and administrative expenses
|
5,758
|
|
|
6,279
|
|
|
10,823
|
|
|
12,234
|
|
||||
Gain on disposal of assets, net
|
(802
|
)
|
|
(160
|
)
|
|
(901
|
)
|
|
(244
|
)
|
||||
Depreciation and amortization
|
7,325
|
|
|
6,670
|
|
|
14,469
|
|
|
12,562
|
|
||||
Total operating costs and expenses
|
554,111
|
|
|
714,873
|
|
|
1,000,712
|
|
|
1,304,708
|
|
||||
Operating income
|
24,491
|
|
|
21,031
|
|
|
45,929
|
|
|
38,592
|
|
||||
Other income (expense):
|
|
|
|
|
|
|
|
||||||||
Interest and debt expense
|
(6,414
|
)
|
|
(6,248
|
)
|
|
(13,466
|
)
|
|
(10,212
|
)
|
||||
Other income (expense), net
|
14
|
|
|
18
|
|
|
(104
|
)
|
|
35
|
|
||||
Net income before income taxes
|
18,091
|
|
|
14,801
|
|
|
32,359
|
|
|
28,415
|
|
||||
Provision for income taxes
|
(217
|
)
|
|
(148
|
)
|
|
(478
|
)
|
|
(351
|
)
|
||||
Net income
|
17,874
|
|
|
14,653
|
|
|
31,881
|
|
|
28,064
|
|
||||
Less net loss attributable to General Partner
|
—
|
|
|
(1,262
|
)
|
|
—
|
|
|
(3,174
|
)
|
||||
Net income attributable to limited partners
|
$
|
17,874
|
|
|
$
|
15,915
|
|
|
$
|
31,881
|
|
|
$
|
31,238
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per limited partner unit:
|
|
|
|
|
|
|
|
||||||||
Common - basic
|
$
|
0.33
|
|
|
$
|
0.34
|
|
|
$
|
0.61
|
|
|
$
|
0.66
|
|
Common - diluted
|
0.33
|
|
|
0.34
|
|
|
0.61
|
|
|
0.66
|
|
||||
Subordinated - basic and diluted
|
0.36
|
|
|
0.34
|
|
|
0.64
|
|
|
0.66
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Weighted-average limited partner units outstanding:
|
|
|
|
|
|
|
|
||||||||
Common - basic
|
26,409
|
|
|
24,017
|
|
|
25,429
|
|
|
24,001
|
|
||||
Common - diluted
|
26,427
|
|
|
24,051
|
|
|
25,441
|
|
|
24,023
|
|
||||
Subordinated - basic and diluted
|
22,811
|
|
|
22,811
|
|
|
22,811
|
|
|
22,811
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Cash distributions declared per common unit
|
$
|
0.4025
|
|
|
$
|
0.3475
|
|
|
$
|
0.7950
|
|
|
$
|
0.6800
|
|
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
|
2016
|
|
2015
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
31,881
|
|
|
$
|
28,064
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
14,469
|
|
|
12,562
|
|
||
Reserve for doubtful accounts
|
126
|
|
|
88
|
|
||
Amortization of loan fees
|
685
|
|
|
579
|
|
||
Unit-based compensation expense
|
1,312
|
|
|
920
|
|
||
Gain on disposal of assets, net
|
(901
|
)
|
|
(244
|
)
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable - Third-party
|
(7,750
|
)
|
|
(15,136
|
)
|
||
Accounts receivable - Affiliate
|
(3,142
|
)
|
|
(7,533
|
)
|
||
Inventories
|
3,109
|
|
|
(1,688
|
)
|
||
Prepaid expenses
|
(539
|
)
|
|
258
|
|
||
Other assets
|
1,957
|
|
|
(866
|
)
|
||
Accounts payable and accrued liabilities
|
17,792
|
|
|
31,128
|
|
||
Net cash provided by operating activities
|
58,999
|
|
|
48,132
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Capital expenditures
|
(14,569
|
)
|
|
(41,490
|
)
|
||
Proceeds from sale of assets
|
977
|
|
|
290
|
|
||
Net cash used in investing activities
|
(13,592
|
)
|
|
(41,200
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Additions to long-term debt
|
—
|
|
|
300,000
|
|
||
Payments on revolving credit facility
|
(125,000
|
)
|
|
(269,000
|
)
|
||
Proceeds from issuance of common units
|
92,460
|
|
|
—
|
|
||
Offering costs for issuance of common units
|
(330
|
)
|
|
—
|
|
||
Deferred financing costs
|
—
|
|
|
(6,820
|
)
|
||
Quarterly distributions to Western
|
(26,947
|
)
|
|
(21,215
|
)
|
||
Quarterly distributions to common unitholders - public
|
(12,633
|
)
|
|
(10,772
|
)
|
||
Contributions from affiliate
|
—
|
|
|
25,127
|
|
||
Net cash provided by (used in) financing activities
|
(72,450
|
)
|
|
17,320
|
|
||
Net change in cash and cash equivalents
|
(27,043
|
)
|
|
24,252
|
|
||
Cash and cash equivalents at beginning of period
|
44,605
|
|
|
54,298
|
|
||
Cash and cash equivalents at end of period
|
$
|
17,562
|
|
|
$
|
78,550
|
|
Supplemental disclosure of cash flow information:
|
|
|
|
||||
Interest paid
|
$
|
13,111
|
|
|
$
|
957
|
|
Income taxes paid
|
94
|
|
|
581
|
|
||
Supplemental disclosure of non-cash investing activities:
|
|
|
|
||||
Accrued capital expenditures
|
$
|
4,860
|
|
|
$
|
4,998
|
|
Transfer of capital spares from other assets to fixed assets
|
161
|
|
|
—
|
|
•
|
Recognition and reporting of revenues - the requirements were amended to remove inconsistencies in revenue requirements and to provide a more complete framework for addressing revenue issues across a broad range of industries and transaction types. The revised standard’s core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The revised standard also addresses principal versus agent considerations and indicators related to transfer of control over specified goods. These provisions are effective January 1, 2018, and are to be applied retrospectively, with early adoption permitted for periods beginning after December 15, 2016, and interim periods thereafter.
|
•
|
Lease accounting - the requirements were amended with regard to recognizing lease assets and lease liabilities on the balance sheet and disclosing information about leasing arrangements. The core principle is that a lessee should recognize the assets and liabilities that arise from leases. These provisions are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted.
|
•
|
Employee share-based payment accounting - the requirements involve several aspects of accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities and classification in the statement of cash flows. These provisions are effective for annual periods beginning after December 15, 2016, including interim periods within those annual periods. Early adoption is permitted in any interim or annual period.
|
•
|
Contingent put and call options in debt instruments - the requirements will reduce diversity of practice in identifying embedded derivatives in debt instruments and clarify the nature of an exercise contingency is not subject to the “clearly and closely” criteria for purposes of assessing whether the call or put option must be separated from the debt instrument and accounted for separately as a derivative. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016 with early adoption permitted subject to certain requirements.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(In thousands)
|
||||||||||||||
Operating Results:
|
|
|
|
|
|
|
|
||||||||
Logistics:
|
|
|
|
|
|
|
|
||||||||
Revenues: Affiliate
|
$
|
43,053
|
|
|
$
|
36,279
|
|
|
$
|
83,969
|
|
|
$
|
71,054
|
|
Revenues: Third-party
|
677
|
|
|
679
|
|
|
1,367
|
|
|
1,302
|
|
||||
Total revenues
|
$
|
43,730
|
|
|
$
|
36,958
|
|
|
85,336
|
|
|
72,356
|
|
||
Wholesale:
|
|
|
|
|
|
|
|
||||||||
Revenues: Affiliate
|
$
|
137,437
|
|
|
$
|
175,762
|
|
|
245,978
|
|
|
319,236
|
|
||
Revenues: Third-party
|
397,435
|
|
|
523,184
|
|
|
715,327
|
|
|
951,708
|
|
||||
Total revenues
|
$
|
534,872
|
|
|
$
|
698,946
|
|
|
961,305
|
|
|
1,270,944
|
|
||
|
|
|
|
|
|
|
|
||||||||
Consolidated revenues
|
$
|
578,602
|
|
|
$
|
735,904
|
|
|
$
|
1,046,641
|
|
|
$
|
1,343,300
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income (loss):
|
|
|
|
|
|
|
|
||||||||
Logistics
|
$
|
18,751
|
|
|
$
|
12,003
|
|
|
$
|
32,681
|
|
|
$
|
23,355
|
|
Wholesale
|
8,797
|
|
|
12,171
|
|
|
18,750
|
|
|
21,160
|
|
||||
Other
|
(3,057
|
)
|
|
(3,143
|
)
|
|
(5,502
|
)
|
|
(5,923
|
)
|
||||
Operating income from segments
|
24,491
|
|
|
21,031
|
|
|
45,929
|
|
|
38,592
|
|
||||
Other income (expense), net
|
(6,400
|
)
|
|
(6,230
|
)
|
|
(13,570
|
)
|
|
(10,177
|
)
|
||||
Consolidated income before income taxes
|
$
|
18,091
|
|
|
$
|
14,801
|
|
|
$
|
32,359
|
|
|
$
|
28,415
|
|
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization:
|
|
|
|
|
|
|
|
||||||||
Logistics
|
$
|
6,119
|
|
|
$
|
5,563
|
|
|
$
|
12,080
|
|
|
$
|
10,378
|
|
Wholesale
|
1,206
|
|
|
1,107
|
|
|
2,389
|
|
|
2,184
|
|
||||
Consolidated depreciation and amortization
|
$
|
7,325
|
|
|
$
|
6,670
|
|
|
$
|
14,469
|
|
|
$
|
12,562
|
|
|
|
|
|
|
|
|
|
||||||||
Capital expenditures:
|
|
|
|
|
|
|
|
||||||||
Logistics
|
$
|
7,299
|
|
|
$
|
13,847
|
|
|
$
|
13,168
|
|
|
$
|
37,444
|
|
Wholesale
|
1,029
|
|
|
999
|
|
|
1,401
|
|
|
4,046
|
|
||||
Consolidated capital expenditures
|
$
|
8,328
|
|
|
$
|
14,846
|
|
|
$
|
14,569
|
|
|
$
|
41,490
|
|
|
|
|
|
|
|
|
|
||||||||
Total assets:
|
|
|
|
|
|
|
|
||||||||
Logistics
|
|
|
|
|
$
|
309,137
|
|
|
$
|
297,566
|
|
||||
Wholesale
|
|
|
|
|
156,067
|
|
|
185,523
|
|
||||||
Other
|
|
|
|
|
18,017
|
|
|
80,659
|
|
||||||
Consolidated total assets
|
|
|
|
|
$
|
483,221
|
|
|
$
|
563,748
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(In thousands, except per unit data)
|
||||||||||||||
Net income
|
$
|
17,874
|
|
|
$
|
14,653
|
|
|
$
|
31,881
|
|
|
$
|
28,064
|
|
Net loss attributable to General Partner (1)
|
—
|
|
|
(1,262
|
)
|
|
—
|
|
|
(3,174
|
)
|
||||
Net income attributable to limited partners
|
17,874
|
|
|
15,915
|
|
|
31,881
|
|
|
31,238
|
|
||||
General Partner distributions
|
(921
|
)
|
|
(139
|
)
|
|
(1,682
|
)
|
|
(155
|
)
|
||||
Limited partners' distributions on common units
|
(9,858
|
)
|
|
(8,346
|
)
|
|
(19,453
|
)
|
|
(16,320
|
)
|
||||
Limited partners' distributions on subordinated units
|
(9,181
|
)
|
|
(7,927
|
)
|
|
(18,135
|
)
|
|
(15,512
|
)
|
||||
Distributions greater than earnings
|
$
|
(2,086
|
)
|
|
$
|
(497
|
)
|
|
$
|
(7,389
|
)
|
|
$
|
(749
|
)
|
|
|
|
|
|
|
|
|
||||||||
General Partners' earnings:
|
|
|
|
|
|
|
|
||||||||
Distributions
|
$
|
921
|
|
|
$
|
139
|
|
|
$
|
1,682
|
|
|
$
|
155
|
|
Net loss attributable to General Partner (1)
|
—
|
|
|
(1,262
|
)
|
|
—
|
|
|
(3,174
|
)
|
||||
Total General Partners' earnings (loss)
|
$
|
921
|
|
|
$
|
(1,123
|
)
|
|
$
|
1,682
|
|
|
$
|
(3,019
|
)
|
|
|
|
|
|
|
|
|
||||||||
Limited partners' earnings on common units:
|
|
|
|
|
|
|
|
||||||||
Distributions
|
$
|
9,858
|
|
|
$
|
8,346
|
|
|
$
|
19,453
|
|
|
$
|
16,320
|
|
Allocation of distributions greater than earnings
|
(1,119
|
)
|
|
(255
|
)
|
|
(3,895
|
)
|
|
(384
|
)
|
||||
Total limited partners' earnings on common units
|
$
|
8,739
|
|
|
$
|
8,091
|
|
|
$
|
15,558
|
|
|
$
|
15,936
|
|
|
|
|
|
|
|
|
|
||||||||
Limited partners' earnings on subordinated units:
|
|
|
|
|
|
|
|
||||||||
Distributions
|
$
|
9,181
|
|
|
$
|
7,927
|
|
|
$
|
18,135
|
|
|
$
|
15,512
|
|
Allocation of distributions greater than earnings
|
(967
|
)
|
|
(242
|
)
|
|
(3,494
|
)
|
|
(365
|
)
|
||||
Total limited partners' earnings on subordinated units
|
$
|
8,214
|
|
|
$
|
7,685
|
|
|
$
|
14,641
|
|
|
$
|
15,147
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average limited partner units outstanding:
|
|
|
|
|
|
|
|
||||||||
Common units - basic
|
26,409
|
|
|
24,017
|
|
|
25,429
|
|
|
24,001
|
|
||||
Common units - diluted
|
26,427
|
|
|
24,051
|
|
|
25,441
|
|
|
24,023
|
|
||||
Subordinated units - basic and diluted
|
22,811
|
|
|
22,811
|
|
|
22,811
|
|
|
22,811
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income per limited partner unit:
|
|
|
|
|
|
|
|
||||||||
Common - basic
|
$
|
0.33
|
|
|
$
|
0.34
|
|
|
$
|
0.61
|
|
|
$
|
0.66
|
|
Common - diluted
|
0.33
|
|
|
0.34
|
|
|
0.61
|
|
|
0.66
|
|
||||
Subordinated - basic and diluted
|
0.36
|
|
|
0.34
|
|
|
0.64
|
|
|
0.66
|
|
(1)
|
We apply the two-class method to calculate earnings per unit and allocate the results of operations of the TexNew Mex Pipeline System prior to the TexNew Mex Pipeline Acquisition entirely to our general partner. The limited partners had no rights to the results of operations before this acquisition.
|
|
June 30,
2016 |
|
December 31,
2015 |
||||
|
(In thousands)
|
||||||
Lubricants
|
$
|
10,470
|
|
|
$
|
14,959
|
|
Refined products
|
108
|
|
|
241
|
|
||
Inventories
|
$
|
10,578
|
|
|
$
|
15,200
|
|
|
June 30,
2016 |
|
December 31,
2015 |
||||
|
(In thousands)
|
||||||
Buildings and improvements
|
$
|
28,670
|
|
|
$
|
33,052
|
|
Pipelines and related assets
|
257,021
|
|
|
241,222
|
|
||
Terminals and related assets
|
119,520
|
|
|
115,947
|
|
||
Asphalt plant, terminals and related assets
|
26,597
|
|
|
26,898
|
|
||
Wholesale and related assets
|
32,051
|
|
|
32,248
|
|
||
|
463,859
|
|
|
449,367
|
|
||
Accumulated depreciation
|
(150,038
|
)
|
|
(138,906
|
)
|
||
|
313,821
|
|
|
310,461
|
|
||
Construction in progress
|
6,672
|
|
|
10,790
|
|
||
Property, plant and equipment, net
|
$
|
320,493
|
|
|
$
|
321,251
|
|
|
June 30, 2016
|
|
December 31, 2015
|
|
Weighted-Average Amortization Period (Years)
|
||||||||||||||||||||
|
Gross Carrying Value
|
|
Accumulated Amortization
|
|
Net Carrying Value
|
|
Gross Carrying Value
|
|
Accumulated Amortization
|
|
Net Carrying Value
|
|
|||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||
Customer relationships
|
$
|
7,172
|
|
|
$
|
(3,969
|
)
|
|
$
|
3,203
|
|
|
$
|
7,551
|
|
|
$
|
(3,921
|
)
|
|
$
|
3,630
|
|
|
6.0
|
Pipeline rights-of-way
|
6,527
|
|
|
(2,619
|
)
|
|
3,908
|
|
|
6,414
|
|
|
(2,287
|
)
|
|
4,127
|
|
|
5.2
|
||||||
Intangible assets, net
|
$
|
13,699
|
|
|
$
|
(6,588
|
)
|
|
$
|
7,111
|
|
|
$
|
13,965
|
|
|
$
|
(6,208
|
)
|
|
$
|
7,757
|
|
|
|
Remainder of 2016
|
$
|
588
|
|
2017
|
1,087
|
|
|
2018
|
1,087
|
|
|
2019
|
1,087
|
|
|
2020
|
792
|
|
|
2021
|
639
|
|
|
June 30,
2016 |
|
December 31,
2015 |
||||
|
(In thousands)
|
||||||
Deferred revenue - affiliate
|
$
|
13,808
|
|
|
$
|
10,130
|
|
Interest
|
8,439
|
|
|
8,438
|
|
||
Excise and other taxes
|
6,048
|
|
|
5,335
|
|
||
Payroll and related costs
|
2,776
|
|
|
4,000
|
|
||
Property taxes
|
1,019
|
|
|
1,500
|
|
||
Branding
|
205
|
|
|
633
|
|
||
Other
|
723
|
|
|
342
|
|
||
Accrued liabilities
|
$
|
33,018
|
|
|
$
|
30,378
|
|
|
General
|
|
TexNew Mex -
|
|
Common -
|
|
Common -
|
|
Subordinated -
|
|
|
||||||||||||
|
Partner
|
|
Western
|
|
Public
|
|
Western
|
|
Western
|
|
Total
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Balance at December 31, 2015
|
$
|
(1,085
|
)
|
|
$
|
(310
|
)
|
|
$
|
327,351
|
|
|
$
|
(105,090
|
)
|
|
$
|
(289,289
|
)
|
|
$
|
(68,423
|
)
|
Unit-based compensation
|
—
|
|
|
—
|
|
|
764
|
|
|
—
|
|
|
—
|
|
|
764
|
|
||||||
Issuance of common units
|
—
|
|
|
—
|
|
|
92,460
|
|
|
—
|
|
|
—
|
|
|
92,460
|
|
||||||
Offering costs for issuance of common units
|
—
|
|
|
—
|
|
|
(330
|
)
|
|
—
|
|
|
—
|
|
|
(330
|
)
|
||||||
Distributions to partners declared
|
(1,682
|
)
|
|
—
|
|
|
(12,633
|
)
|
|
(6,820
|
)
|
|
(18,135
|
)
|
|
(39,270
|
)
|
||||||
Net income attributable to limited partners
|
—
|
|
|
—
|
|
|
11,174
|
|
|
5,658
|
|
|
15,049
|
|
|
31,881
|
|
||||||
Balance at June 30, 2016
|
$
|
(2,767
|
)
|
|
$
|
(310
|
)
|
|
$
|
418,786
|
|
|
$
|
(106,252
|
)
|
|
$
|
(292,375
|
)
|
|
$
|
17,082
|
|
|
|
Total Quarterly Distribution
per Unit Target Amount
|
|
Marginal Percentage
Interest in Distributions
|
||||
|
|
Unitholders
|
|
General Partner
|
||||
Minimum Quarterly Distribution
|
|
$0.2875
|
|
100.0
|
%
|
|
—
|
|
First Target Distribution
|
|
above $0.2875 up to $0.3306
|
|
100.0
|
%
|
|
—
|
|
Second Target Distribution
|
|
above $0.3306 up to $0.3594
|
|
85.0
|
%
|
|
15.0
|
%
|
Third Target Distribution
|
|
above $0.3594 up to $0.4313
|
|
75.0
|
%
|
|
25.0
|
%
|
Thereafter
|
|
above $0.4313
|
|
50.0
|
%
|
|
50.0
|
%
|
Declaration Date
|
|
Record Date
|
|
Payment Date
|
|
Distribution per Common and Subordinated Unit
|
||
February 1, 2016
|
|
February 11, 2016
|
|
February 26, 2016
|
|
$
|
0.3925
|
|
April 25, 2016
|
|
May 13, 2016
|
|
May 27, 2016
|
|
0.4025
|
|
|
July 26, 2016
|
|
August 12, 2016
|
|
August 26, 2016
|
|
0.4125
|
|
|
Total
|
|
$
|
1.2075
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(In thousands, except per unit data)
|
||||||||||||||
TexNew Mex Unit distributions:
|
|
|
|
|
|
|
|
||||||||
TexNew Mex Unit distributions
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
310
|
|
|
$
|
—
|
|
Total TexNew Mex Unit distributions
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
310
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
General Partners' distributions:
|
|
|
|
|
|
|
|
||||||||
General Partner's incentive distribution rights
|
$
|
921
|
|
|
$
|
139
|
|
|
$
|
1,682
|
|
|
$
|
155
|
|
Total General Partner's distributions
|
$
|
921
|
|
|
$
|
139
|
|
|
$
|
1,682
|
|
|
$
|
155
|
|
|
|
|
|
|
|
|
|
||||||||
Limited partners' distributions:
|
|
|
|
|
|
|
|
||||||||
Common
|
$
|
9,858
|
|
|
$
|
8,346
|
|
|
$
|
19,453
|
|
|
$
|
16,320
|
|
Subordinated
|
9,181
|
|
|
7,927
|
|
|
18,135
|
|
|
15,512
|
|
||||
Total limited partners' distributions
|
19,039
|
|
|
16,273
|
|
|
37,588
|
|
|
31,832
|
|
||||
Total cash distributions
|
$
|
19,960
|
|
|
$
|
16,412
|
|
|
$
|
39,580
|
|
|
$
|
31,987
|
|
|
|
|
|
|
|
|
|
||||||||
Cash distributions per limited partner unit
|
$
|
0.4025
|
|
|
$
|
0.3475
|
|
|
$
|
0.7950
|
|
|
$
|
0.6800
|
|
|
Number of Phantom Units
|
|
Weighted-Average
Grant Date Fair Value |
|||
Not vested at December 31, 2015
|
279,787
|
|
|
$
|
28.06
|
|
Awards granted
|
86,100
|
|
|
22.51
|
|
|
Awards vested
|
(70,886
|
)
|
|
26.16
|
|
|
Awards forfeited
|
(10,181
|
)
|
|
31.87
|
|
|
Not vested at June 30, 2016
|
284,820
|
|
|
26.45
|
|
Remaining 2016
|
$
|
3,756
|
|
2017
|
6,040
|
|
|
2018
|
3,274
|
|
|
2019
|
1,180
|
|
|
2020
|
180
|
|
|
2021 and thereafter
|
479
|
|
|
|
$
|
14,909
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(In thousands)
|
||||||||||||||
Indirect charges:
|
|
|
|
|
|
|
|
||||||||
Operating and maintenance expenses
|
$
|
10,250
|
|
|
$
|
8,680
|
|
|
$
|
20,459
|
|
|
$
|
17,687
|
|
Selling, general and administrative expenses
|
2,097
|
|
|
2,287
|
|
|
3,913
|
|
|
4,270
|
|
||||
Total indirect charges
|
$
|
12,347
|
|
|
$
|
10,967
|
|
|
$
|
24,372
|
|
|
$
|
21,957
|
|
•
|
our obligation to reimburse Western for the provision by Western of certain general and administrative services (this reimbursement is in addition to certain expenses of our general partner and its affiliates that are reimbursed under our partnership agreement and services agreement), as well as certain other direct or allocated costs and expenses incurred by Western on our behalf;
|
•
|
our rights of first offer to acquire certain logistics assets from Western;
|
•
|
an indemnity by Western for certain environmental and other liabilities, and our obligation to indemnify Western for events and conditions associated with the operation of our assets that occur after closing of the Offering and for environmental liabilities related to our assets to the extent Western is not required to indemnify us;
|
•
|
Western’s transfer of certain environmental permits related to our assets to us and our use of such permits prior to the transfer thereof; and
|
•
|
the granting of a license from Western to us with respect to use of certain Western trademarks and our granting of a license to Western with respect to use of certain of our trademarks.
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
Three Months Ended
|
||||||||||
|
June 30,
|
||||||||||
|
2016
|
|
2015
|
|
Change
|
||||||
|
(In thousands, except per unit data)
|
||||||||||
Revenues:
|
|
|
|
|
|
||||||
Fee based:
|
|
|
|
|
|
||||||
Affiliate
|
$
|
53,965
|
|
|
$
|
47,465
|
|
|
$
|
6,500
|
|
Third-party
|
677
|
|
|
679
|
|
|
(2
|
)
|
|||
Sales based:
|
|
|
|
|
|
||||||
Affiliate
|
126,525
|
|
|
164,576
|
|
|
(38,051
|
)
|
|||
Third-party
|
397,435
|
|
|
523,184
|
|
|
(125,749
|
)
|
|||
Total revenues
|
578,602
|
|
|
735,904
|
|
|
(157,302
|
)
|
|||
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|||
Cost of products sold:
|
|
|
|
|
|
||||||
Affiliate
|
123,870
|
|
|
162,191
|
|
|
(38,321
|
)
|
|||
Third-party
|
380,386
|
|
|
501,835
|
|
|
(121,449
|
)
|
|||
Operating and maintenance expenses
|
37,574
|
|
|
38,058
|
|
|
(484
|
)
|
|||
Selling, general and administrative expenses
|
5,758
|
|
|
6,279
|
|
|
(521
|
)
|
|||
Gain on disposal of assets, net
|
(802
|
)
|
|
(160
|
)
|
|
(642
|
)
|
|||
Depreciation and amortization
|
7,325
|
|
|
6,670
|
|
|
655
|
|
|||
Total operating costs and expenses
|
554,111
|
|
|
714,873
|
|
|
(160,762
|
)
|
|||
Operating income
|
24,491
|
|
|
21,031
|
|
|
3,460
|
|
|||
Other income (expense):
|
|
|
|
|
|
||||||
Interest and debt expense
|
(6,414
|
)
|
|
(6,248
|
)
|
|
(166
|
)
|
|||
Other, net
|
14
|
|
|
18
|
|
|
(4
|
)
|
|||
Net income before income taxes
|
18,091
|
|
|
14,801
|
|
|
3,290
|
|
|||
Provision for income taxes
|
(217
|
)
|
|
(148
|
)
|
|
(69
|
)
|
|||
Net income
|
17,874
|
|
|
14,653
|
|
|
3,221
|
|
|||
Net income attributable to General Partner
|
—
|
|
|
(1,262
|
)
|
|
1,262
|
|
|||
Net income attributable to limited partners
|
$
|
17,874
|
|
|
$
|
15,915
|
|
|
$
|
1,959
|
|
|
|
|
|
|
|
||||||
Net income per limited partner unit:
|
|
|
|
|
|
||||||
Common - basic
|
$
|
0.33
|
|
|
$
|
0.34
|
|
|
$
|
(0.01
|
)
|
Common - diluted
|
0.33
|
|
|
0.34
|
|
|
(0.01
|
)
|
|||
Subordinated - basic and diluted
|
0.36
|
|
|
0.34
|
|
|
0.02
|
|
|||
|
|
|
|
|
|
||||||
Weighted-average limited partner units outstanding:
|
|
|
|
|
|
||||||
Common - basic
|
26,409
|
|
|
24,017
|
|
|
2,392
|
|
|||
Common - diluted
|
26,427
|
|
|
24,051
|
|
|
2,376
|
|
|||
Subordinated - basic and diluted
|
22,811
|
|
|
22,811
|
|
|
—
|
|
|
Three Months Ended
|
||||||||||
|
June 30,
|
||||||||||
|
2016
|
|
2015
|
|
Change
|
||||||
|
(In thousands)
|
||||||||||
Cash Flow Data
|
|
|
|
|
|
||||||
Net cash provided by (used in):
|
|
|
|
|
|
||||||
Operating activities
|
$
|
34,209
|
|
|
$
|
15,400
|
|
|
$
|
18,809
|
|
Investing activities
|
(7,470
|
)
|
|
(14,673
|
)
|
|
7,203
|
|
|||
Financing activities
|
(37,830
|
)
|
|
(10,349
|
)
|
|
(27,481
|
)
|
|||
Capital expenditures
|
$
|
8,328
|
|
|
$
|
14,846
|
|
|
$
|
(6,518
|
)
|
Other Data
|
|
|
|
|
|
||||||
EBITDA (1)
|
$
|
31,830
|
|
|
$
|
27,048
|
|
|
$
|
4,782
|
|
Distributable cash flow (1)
|
25,090
|
|
|
17,440
|
|
|
7,650
|
|
(1)
|
EBITDA and Distributable Cash Flow are non-GAAP performance measures that we believe are useful in evaluating performance as a general indication of, among other things, our operating performance and the ability of our assets to generate sufficient cash to make distributions to our unitholders. We present an explanation and reconciliation to the nearest comparable GAAP measure in the section titled EBITDA and Distributable Cash Flows herein.
|
|
Three Months Ended
|
||||||||||
|
June 30,
|
||||||||||
|
2016
|
|
2015
|
|
Change
|
||||||
|
(In thousands)
|
||||||||||
Net sales
|
$
|
578,602
|
|
|
$
|
735,904
|
|
|
$
|
(157,302
|
)
|
Cost of products sold (exclusive of depreciation and amortization)
|
504,256
|
|
|
664,026
|
|
|
(159,770
|
)
|
|||
Gross profit
|
$
|
74,346
|
|
|
$
|
71,878
|
|
|
$
|
2,468
|
|
|
Six Months Ended
|
||||||||||
|
June 30,
|
||||||||||
|
2016
|
|
2015
|
|
Change
|
||||||
|
(In thousands, except per unit data)
|
||||||||||
Revenues:
|
|
|
|
|
|
||||||
Fee based:
|
|
|
|
|
|
||||||
Affiliate
|
$
|
105,893
|
|
|
$
|
92,943
|
|
|
$
|
12,950
|
|
Third-party
|
1,367
|
|
|
1,302
|
|
|
65
|
|
|||
Sales based:
|
|
|
|
|
|
||||||
Affiliate
|
224,054
|
|
|
297,347
|
|
|
(73,293
|
)
|
|||
Third-party
|
715,327
|
|
|
951,708
|
|
|
(236,381
|
)
|
|||
Total revenues
|
1,046,641
|
|
|
1,343,300
|
|
|
(296,659
|
)
|
|||
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|||
Cost of products sold:
|
|
|
|
|
|
||||||
Affiliate
|
219,019
|
|
|
292,699
|
|
|
(73,680
|
)
|
|||
Third-party
|
680,827
|
|
|
913,028
|
|
|
(232,201
|
)
|
|||
Operating and maintenance expenses
|
76,475
|
|
|
74,429
|
|
|
2,046
|
|
|||
Selling, general and administrative expenses
|
10,823
|
|
|
12,234
|
|
|
(1,411
|
)
|
|||
Gain on disposal of assets, net
|
(901
|
)
|
|
(244
|
)
|
|
(657
|
)
|
|||
Depreciation and amortization
|
14,469
|
|
|
12,562
|
|
|
1,907
|
|
|||
Total operating costs and expenses
|
1,000,712
|
|
|
1,304,708
|
|
|
(303,996
|
)
|
|||
Operating income
|
45,929
|
|
|
38,592
|
|
|
7,337
|
|
|||
Other income (expense):
|
|
|
|
|
|
||||||
Interest and debt expense
|
(13,466
|
)
|
|
(10,212
|
)
|
|
(3,254
|
)
|
|||
Other, net
|
(104
|
)
|
|
35
|
|
|
(139
|
)
|
|||
Net income before income taxes
|
32,359
|
|
|
28,415
|
|
|
3,944
|
|
|||
Provision for income taxes
|
(478
|
)
|
|
(351
|
)
|
|
(127
|
)
|
|||
Net income
|
31,881
|
|
|
28,064
|
|
|
3,817
|
|
|||
Less net loss attributable to General Partner
|
—
|
|
|
(3,174
|
)
|
|
3,174
|
|
|||
Net income attributable to limited partners
|
$
|
31,881
|
|
|
$
|
31,238
|
|
|
$
|
643
|
|
|
|
|
|
|
|
||||||
Net income per limited partner unit:
|
|
|
|
|
|
||||||
Common - basic
|
$
|
0.61
|
|
|
$
|
0.66
|
|
|
$
|
(0.05
|
)
|
Common - diluted
|
0.61
|
|
|
0.66
|
|
|
(0.05
|
)
|
|||
Subordinated - basic and diluted
|
0.64
|
|
|
0.66
|
|
|
(0.02
|
)
|
|||
|
|
|
|
|
|
||||||
Weighted-average limited partner units outstanding:
|
|
|
|
|
|
||||||
Common - basic
|
25,429
|
|
|
24,001
|
|
|
1,428
|
|
|||
Common - diluted
|
25,441
|
|
|
24,023
|
|
|
1,418
|
|
|||
Subordinated - basic and diluted
|
22,811
|
|
|
22,811
|
|
|
—
|
|
|
Six Months Ended
|
||||||||||
|
June 30,
|
||||||||||
|
2016
|
|
2015
|
|
Change
|
||||||
|
(In thousands)
|
||||||||||
Cash Flow Data
|
|
|
|
|
|
||||||
Net cash provided by (used in):
|
|
|
|
|
|
||||||
Operating activities
|
$
|
58,999
|
|
|
$
|
48,132
|
|
|
$
|
10,867
|
|
Investing activities
|
(13,592
|
)
|
|
(41,200
|
)
|
|
27,608
|
|
|||
Financing activities
|
(72,450
|
)
|
|
17,320
|
|
|
(89,770
|
)
|
|||
Capital expenditures
|
$
|
14,569
|
|
|
$
|
41,490
|
|
|
$
|
(26,921
|
)
|
Other Data
|
|
|
|
|
|
||||||
EBITDA (1)
|
$
|
60,294
|
|
|
$
|
51,276
|
|
|
$
|
9,018
|
|
Distributable cash flow (1)
|
47,618
|
|
|
39,209
|
|
|
8,409
|
|
(1)
|
EBITDA and Distributable Cash Flow are non-GAAP performance measures that we believe are useful in evaluating performance as a general indication of, among other things, our operating performance and the ability of our assets to generate sufficient cash to make distributions to our unitholders. We present an explanation and reconciliation to the nearest comparable GAAP measure in the section titled EBITDA and Distributable Cash Flows herein.
|
|
Six Months Ended
|
||||||||||
|
June 30,
|
||||||||||
|
2016
|
|
2015
|
|
Change
|
||||||
|
(In thousands)
|
||||||||||
Net sales
|
$
|
1,046,641
|
|
|
$
|
1,343,300
|
|
|
$
|
(296,659
|
)
|
Cost of products sold (exclusive of depreciation and amortization)
|
899,846
|
|
|
1,205,727
|
|
|
(305,881
|
)
|
|||
Gross profit
|
$
|
146,795
|
|
|
$
|
137,573
|
|
|
$
|
9,222
|
|
•
|
EBITDA does not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;
|
•
|
EBITDA does not reflect the interest expense or the cash requirements necessary to service interest or principal payments on our debt;
|
•
|
EBITDA does not reflect changes in, or cash requirements for, our working capital needs; and
|
•
|
EBITDA, as we calculate it, may differ from the EBITDA calculations of our affiliates or other companies in our industry, thereby limiting its usefulness as a comparative measure.
|
•
|
our operating performance as compared to those of other companies in the midstream energy industry, without regard to financial methods, historical cost basis or capital structure;
|
•
|
the ability of our assets to generate sufficient cash to make distributions to our unitholders;
|
•
|
our ability to incur and service debt and fund capital expenditures; and
|
•
|
the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
|
|
Three Months Ended
|
||||||||||
|
June 30,
|
||||||||||
|
2016
|
|
2015
|
|
Change
|
||||||
|
(In thousands)
|
||||||||||
Net income attributable to limited partners
|
$
|
17,874
|
|
|
$
|
15,915
|
|
|
$
|
1,959
|
|
Interest and debt expense
|
6,414
|
|
|
6,248
|
|
|
166
|
|
|||
Provision for income taxes
|
217
|
|
|
148
|
|
|
69
|
|
|||
Depreciation and amortization
|
7,325
|
|
|
4,737
|
|
|
2,588
|
|
|||
EBITDA
|
31,830
|
|
|
27,048
|
|
|
4,782
|
|
|||
|
|
|
|
|
|
||||||
Change in deferred revenues
|
1,446
|
|
|
1,215
|
|
|
231
|
|
|||
Interest accruals
|
(6,072
|
)
|
|
(8,908
|
)
|
|
2,836
|
|
|||
Income taxes paid
|
(64
|
)
|
|
(580
|
)
|
|
516
|
|
|||
Maintenance capital expenditures
|
(2,050
|
)
|
|
(2,117
|
)
|
|
67
|
|
|||
Distributions on TexNew Mex Units
|
—
|
|
|
—
|
|
|
—
|
|
|||
Other
|
—
|
|
|
782
|
|
|
(782
|
)
|
|||
Distributable cash flow
|
$
|
25,090
|
|
|
$
|
17,440
|
|
|
$
|
7,650
|
|
|
|
|
|
|
|
||||||
Minimum quarterly distribution
|
$
|
14,840
|
|
|
$
|
13,463
|
|
|
$
|
1,377
|
|
|
Six Months Ended
|
||||||||||
|
June 30,
|
||||||||||
|
2016
|
|
2015
|
|
Change
|
||||||
|
(In thousands)
|
||||||||||
Net income attributable to limited partners
|
$
|
31,881
|
|
|
$
|
31,238
|
|
|
$
|
643
|
|
Interest and debt expense
|
13,466
|
|
|
10,212
|
|
|
3,254
|
|
|||
Provision for income taxes
|
478
|
|
|
351
|
|
|
127
|
|
|||
Depreciation and amortization
|
14,469
|
|
|
9,475
|
|
|
4,994
|
|
|||
EBITDA
|
60,294
|
|
|
51,276
|
|
|
9,018
|
|
|||
|
|
|
|
|
|
||||||
Change in deferred revenues
|
3,678
|
|
|
2,447
|
|
|
1,231
|
|
|||
Interest accruals
|
(12,781
|
)
|
|
(9,633
|
)
|
|
(3,148
|
)
|
|||
Income taxes paid
|
(94
|
)
|
|
(581
|
)
|
|
487
|
|
|||
Maintenance capital expenditures
|
(3,479
|
)
|
|
(5,082
|
)
|
|
1,603
|
|
|||
Distributions on TexNew Mex Units
|
—
|
|
|
—
|
|
|
—
|
|
|||
Other
|
—
|
|
|
782
|
|
|
(782
|
)
|
|||
Distributable cash flow
|
$
|
47,618
|
|
|
$
|
39,209
|
|
|
$
|
8,409
|
|
|
|
|
|
|
|
||||||
Minimum quarterly distribution
|
$
|
28,438
|
|
|
$
|
26,926
|
|
|
$
|
1,512
|
|
|
Three Months Ended
|
||||||||||
|
June 30,
|
||||||||||
|
2016
|
|
2015
|
|
Change
|
||||||
|
(In thousands, except key operating statistics)
|
||||||||||
Statement of Operations Data:
|
|
|
|
|
|
||||||
Fee based revenues:
|
|
|
|
|
|
||||||
Affiliate
|
$
|
43,053
|
|
|
$
|
36,279
|
|
|
$
|
6,774
|
|
Third-party
|
677
|
|
|
679
|
|
|
(2
|
)
|
|||
Total revenues
|
43,730
|
|
|
36,958
|
|
|
6,772
|
|
|||
Operating costs and expenses:
|
|
|
|
|
|
|
|
||||
Operating and maintenance expenses
|
18,317
|
|
|
18,506
|
|
|
(189
|
)
|
|||
General and administrative expenses
|
548
|
|
|
886
|
|
|
(338
|
)
|
|||
Gain on disposal of assets, net
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
|||
Depreciation and amortization
|
6,119
|
|
|
5,563
|
|
|
556
|
|
|||
Total operating costs and expenses
|
24,979
|
|
|
24,955
|
|
|
24
|
|
|||
Operating income
|
$
|
18,751
|
|
|
$
|
12,003
|
|
|
$
|
6,748
|
|
Key Operating Statistics:
|
|
|
|
|
|
||||||
Pipeline and gathering (bpd):
|
|
|
|
|
|
||||||
Mainline movements (1):
|
|
|
|
|
|
||||||
Permian/Delaware Basin system
|
55,953
|
|
|
43,873
|
|
|
12,080
|
|
|||
Four Corners system
|
58,047
|
|
|
51,486
|
|
|
6,561
|
|
|||
TexNew Mex system
|
10,375
|
|
|
3,398
|
|
|
6,977
|
|
|||
Gathering (truck offloading):
|
|
|
|
|
|
||||||
Permian/Delaware Basin system
|
17,823
|
|
|
24,019
|
|
|
(6,196
|
)
|
|||
Four Corners system
|
11,133
|
|
|
12,950
|
|
|
(1,817
|
)
|
|||
Pipeline Gathering and Injection system:
|
|
|
|
|
|
||||||
Permian/Delaware Basin system
|
11,302
|
|
|
5,911
|
|
|
5,391
|
|
|||
Four Corners system
|
27,225
|
|
|
22,081
|
|
|
5,144
|
|
|||
TexNew Mex system
|
343
|
|
|
—
|
|
|
343
|
|
|||
Tank storage capacity (bbls) (2)
|
845,514
|
|
|
619,893
|
|
|
225,621
|
|
|||
Terminalling, transportation and storage:
|
|
|
|
|
|
||||||
Shipments into and out of storage (bpd) (includes asphalt)
|
393,037
|
|
|
389,220
|
|
|
3,817
|
|
|||
Terminal storage capacity (bbls) (2)
|
7,385,543
|
|
|
7,482,152
|
|
|
(96,609
|
)
|
(1)
|
Some barrels of crude oil in route to Western's Gallup refinery and Permian/Delaware Basin are transported on more than one of our mainlines. Mainline movements for the Four Corners and Delaware Basin systems include each barrel transported on each mainline. During the second quarter of 2015, we began shipping crude oil from the Four Corners system, through the TexNew Mex Pipeline System, to the Permian/Delaware system.
|
(2)
|
Storage shell capacities represent weighted-average capacities for the periods indicated.
|
|
Six Months Ended
|
||||||||||
|
June 30,
|
||||||||||
|
2016
|
|
2015
|
|
Change
|
||||||
|
(In thousands, except key operating statistics)
|
||||||||||
Statement of Operations Data:
|
|
|
|
|
|
||||||
Fee based revenues:
|
|
|
|
|
|
||||||
Affiliate
|
$
|
83,969
|
|
|
$
|
71,054
|
|
|
$
|
12,915
|
|
Third-party
|
1,367
|
|
|
1,302
|
|
|
65
|
|
|||
Total revenues
|
85,336
|
|
|
72,356
|
|
|
12,980
|
|
|||
Operating costs and expenses:
|
|
|
|
|
|
|
|
||||
Operating and maintenance expenses
|
39,317
|
|
|
36,758
|
|
|
2,559
|
|
|||
General and administrative expenses
|
1,263
|
|
|
1,865
|
|
|
(602
|
)
|
|||
Gain on disposal of assets, net
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
|||
Depreciation and amortization
|
12,080
|
|
|
10,378
|
|
|
1,702
|
|
|||
Total operating costs and expenses
|
52,655
|
|
|
49,001
|
|
|
3,654
|
|
|||
Operating income
|
$
|
32,681
|
|
|
$
|
23,355
|
|
|
$
|
9,326
|
|
Key Operating Statistics:
|
|
|
|
|
|
||||||
Pipeline and gathering (bpd):
|
|
|
|
|
|
||||||
Mainline movements (1):
|
|
|
|
|
|
||||||
Permian/Delaware Basin system
|
52,719
|
|
|
40,213
|
|
|
12,506
|
|
|||
Four Corners system
|
55,257
|
|
|
48,679
|
|
|
6,578
|
|
|||
TexNew Mex system
|
11,460
|
|
|
1,708
|
|
|
9,752
|
|
|||
Gathering (truck offloading):
|
|
|
|
|
|
||||||
Permian/Delaware Basin system
|
19,178
|
|
|
23,316
|
|
|
(4,138
|
)
|
|||
Four Corners system
|
11,947
|
|
|
11,812
|
|
|
135
|
|
|||
Pipeline Gathering and Injection system:
|
|
|
|
|
|
||||||
Permian/Delaware Basin system
|
9,594
|
|
|
3,775
|
|
|
5,819
|
|
|||
Four Corners system
|
25,831
|
|
|
21,327
|
|
|
4,504
|
|
|||
TexNew Mex system
|
171
|
|
|
—
|
|
|
171
|
|
|||
Tank storage capacity (bbls) (2)
|
836,858
|
|
|
620,198
|
|
|
216,660
|
|
|||
Terminalling, transportation and storage:
|
|
|
|
|
|
||||||
Shipments into and out of storage (bpd) (includes asphalt)
|
390,647
|
|
|
390,263
|
|
|
384
|
|
|||
Terminal storage capacity (bbls) (2)
|
7,385,543
|
|
|
7,486,337
|
|
|
(100,794
|
)
|
(1)
|
Some barrels of crude oil in route to Western's Gallup refinery and Permian/Delaware Basin are transported on more than one of our mainlines. Mainline movements for the Four Corners and Delaware Basin systems include each barrel transported on each mainline. During the second quarter of 2015, we began shipping crude oil from the Four Corners system, through the TexNew Mex Pipeline System, to the Permian/Delaware system.
|
(2)
|
Storage shell capacities represent weighted-average capacities for the periods indicated.
|
|
Three Months Ended
|
||||||||||
|
June 30,
|
||||||||||
|
2016
|
|
2015
|
|
Change
|
||||||
|
(In thousands, except key operating stats)
|
||||||||||
Statement of Operations Data:
|
|
|
|
|
|
||||||
Fee based revenues (1):
|
|
|
|
|
|
||||||
Affiliate
|
$
|
10,912
|
|
|
$
|
11,186
|
|
|
$
|
(274
|
)
|
Sales based revenues (1):
|
|
|
|
|
|
||||||
Affiliate
|
126,525
|
|
|
164,576
|
|
|
(38,051
|
)
|
|||
Third-party
|
397,435
|
|
|
523,184
|
|
|
(125,749
|
)
|
|||
Total revenues
|
534,872
|
|
|
698,946
|
|
|
(164,074
|
)
|
|||
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|||
Cost of products sold:
|
|
|
|
|
|
||||||
Affiliate
|
123,870
|
|
|
162,191
|
|
|
(38,321
|
)
|
|||
Third-party
|
380,386
|
|
|
501,835
|
|
|
(121,449
|
)
|
|||
Operating and maintenance expenses
|
19,257
|
|
|
19,552
|
|
|
(295
|
)
|
|||
General and administrative expenses
|
2,153
|
|
|
2,250
|
|
|
(97
|
)
|
|||
Gain on disposal of assets, net
|
(797
|
)
|
|
(160
|
)
|
|
(637
|
)
|
|||
Depreciation and amortization
|
1,206
|
|
|
1,107
|
|
|
99
|
|
|||
Total operating costs and expenses
|
526,075
|
|
|
686,775
|
|
|
(160,700
|
)
|
|||
Operating income
|
$
|
8,797
|
|
|
$
|
12,171
|
|
|
$
|
(3,374
|
)
|
Key Operating Statistics:
|
|
|
|
|
|
||||||
Fuel gallons sold (in thousands)
|
311,486
|
|
|
310,811
|
|
|
675
|
|
|||
Fuel gallons sold to retail (included in fuel gallons sold above) (in thousands)
|
83,721
|
|
|
79,023
|
|
|
4,698
|
|
|||
Fuel margin per gallon (2)
|
$
|
0.025
|
|
|
$
|
0.037
|
|
|
$
|
(0.012
|
)
|
Lubricant gallons sold (in thousands)
|
1,846
|
|
|
3,014
|
|
|
(1,168
|
)
|
|||
Lubricant margin per gallon (3)
|
$
|
0.89
|
|
|
$
|
0.78
|
|
|
$
|
0.11
|
|
Asphalt trucking volume (bpd)
|
4,876
|
|
|
—
|
|
|
4,876
|
|
|||
Crude oil trucking volume (bpd)
|
42,092
|
|
|
48,992
|
|
|
(6,900
|
)
|
|||
Average crude oil revenue per barrel
|
$
|
2.17
|
|
|
$
|
2.51
|
|
|
$
|
(0.34
|
)
|
(1)
|
All wholesale fee based revenues are generated through fees charged to Western's refining segment for truck transportation and delivery of crude oil and asphalt. Affiliate and third-party sales based revenues result from sales of refined products to Western and third-party customers at a delivered price that includes charges for product transportation.
|
(2)
|
Fuel margin per gallon is a measurement calculated by dividing the difference between fuel sales, net of transportation charges, and cost of fuel sales for our wholesale business by the number of gallons sold. Fuel margin per gallon is a measure frequently used in the petroleum products wholesale industry to measure operating results related to fuel sales.
|
(3)
|
Lubricant margin per gallon is a measurement calculated by dividing the difference between lubricant sales, net of transportation charges, and lubricant cost of products sold by the number of gallons sold. Lubricant margin is a measure frequently used in the petroleum products wholesale industry to measure operating results related to lubricant sales.
|
|
Three Months Ended
|
||||||||||
|
June 30,
|
||||||||||
|
2016
|
|
2015
|
|
Change
|
||||||
|
(In thousands)
|
||||||||||
Net sales
|
$
|
534,872
|
|
|
$
|
698,946
|
|
|
$
|
(164,074
|
)
|
Cost of products sold (exclusive of depreciation and amortization)
|
504,256
|
|
|
664,026
|
|
|
(159,770
|
)
|
|||
Gross margin
|
$
|
30,616
|
|
|
$
|
34,920
|
|
|
$
|
(4,304
|
)
|
|
Six Months Ended
|
||||||||||
|
June 30,
|
||||||||||
|
2016
|
|
2015
|
|
Change
|
||||||
|
(In thousands, except key operating stats)
|
||||||||||
Statement of Operations Data:
|
|
|
|
|
|
||||||
Fee based revenues (1):
|
|
|
|
|
|
||||||
Affiliate
|
$
|
21,924
|
|
|
$
|
21,889
|
|
|
$
|
35
|
|
Sales based revenues (1):
|
|
|
|
|
|
||||||
Affiliate
|
224,054
|
|
|
297,347
|
|
|
(73,293
|
)
|
|||
Third-party
|
715,327
|
|
|
951,708
|
|
|
(236,381
|
)
|
|||
Total revenues
|
961,305
|
|
|
1,270,944
|
|
|
(309,639
|
)
|
|||
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|||
Cost of products sold:
|
|
|
|
|
|
||||||
Affiliate
|
219,019
|
|
|
292,699
|
|
|
(73,680
|
)
|
|||
Third-party
|
680,827
|
|
|
913,028
|
|
|
(232,201
|
)
|
|||
Operating and maintenance expenses
|
37,158
|
|
|
37,671
|
|
|
(513
|
)
|
|||
Selling, general and administrative expenses
|
4,058
|
|
|
4,446
|
|
|
(388
|
)
|
|||
Gain on disposal of assets, net
|
(896
|
)
|
|
(244
|
)
|
|
(652
|
)
|
|||
Depreciation and amortization
|
2,389
|
|
|
2,184
|
|
|
205
|
|
|||
Total operating costs and expenses
|
942,555
|
|
|
1,249,784
|
|
|
(307,229
|
)
|
|||
Operating income
|
$
|
18,750
|
|
|
$
|
21,160
|
|
|
$
|
(2,410
|
)
|
Key Operating Statistics:
|
|
|
|
|
|
||||||
Fuel gallons sold (in thousands)
|
626,429
|
|
|
614,242
|
|
|
12,187
|
|
|||
Fuel gallons sold to retail (included in fuel gallons sold above) (in thousands)
|
163,562
|
|
|
154,286
|
|
|
9,276
|
|
|||
Fuel margin per gallon (2)
|
$
|
0.027
|
|
|
$
|
0.032
|
|
|
$
|
(0.005
|
)
|
Lubricant gallons sold (in thousands)
|
4,047
|
|
|
5,971
|
|
|
(1,924
|
)
|
|||
Lubricant margin per gallon (3)
|
$
|
0.78
|
|
|
$
|
0.72
|
|
|
$
|
0.06
|
|
Asphalt trucking volume (bpd)
|
3,875
|
|
|
—
|
|
|
3,875
|
|
|||
Crude oil trucking volume (bpd)
|
38,801
|
|
|
46,037
|
|
|
(7,236
|
)
|
|||
Average crude oil revenue per barrel
|
$
|
2.20
|
|
|
$
|
2.63
|
|
|
$
|
(0.43
|
)
|
(1)
|
All wholesale fee based revenues are generated through fees charged to Western's refining segment for truck transportation and delivery of crude oil and asphalt. Affiliate and third-party sales based revenues result from sales of refined products to Western and third-party customers at a delivered price that includes charges for product transportation.
|
(2)
|
Fuel margin per gallon is a measurement calculated by dividing the difference between fuel sales, net of transportation charges, and cost of fuel sales for our wholesale business by the number of gallons sold. Fuel margin per gallon is a measure frequently used in the petroleum products wholesale industry to measure operating results related to fuel sales.
|
(3)
|
Lubricant margin per gallon is a measurement calculated by dividing the difference between lubricant sales, net of transportation charges, and lubricant cost of products sold by the number of gallons sold. Lubricant margin is a measure frequently used in the petroleum products wholesale industry to measure operating results related to lubricant sales.
|
|
Six Months Ended
|
||||||||||
|
June 30,
|
||||||||||
|
2016
|
|
2015
|
|
Change
|
||||||
|
(In thousands)
|
||||||||||
Net sales
|
$
|
961,305
|
|
|
$
|
1,270,944
|
|
|
$
|
(309,639
|
)
|
Cost of products sold (exclusive of depreciation and amortization)
|
899,846
|
|
|
1,205,727
|
|
|
(305,881
|
)
|
|||
Gross margin
|
$
|
61,459
|
|
|
$
|
65,217
|
|
|
$
|
(3,758
|
)
|
Declaration Date
|
|
Record Date
|
|
Payment Date
|
|
Distribution per Common and Subordinated Unit
|
||
February 1, 2016
|
|
February 11, 2016
|
|
February 26, 2016
|
|
$
|
0.3925
|
|
April 25, 2016
|
|
May 13, 2016
|
|
May 27, 2016
|
|
0.4025
|
|
|
July 26, 2016
|
|
August 12, 2016
|
|
August 26, 2016
|
|
0.4125
|
|
|
Total
|
|
$
|
1.2075
|
|
|
Six Months Ended
|
||||||||||
|
June 30,
|
||||||||||
|
2016
|
|
2015
|
|
Change
|
||||||
|
(In thousands)
|
||||||||||
Net cash provided by operating activities
|
$
|
58,999
|
|
|
$
|
48,132
|
|
|
$
|
10,867
|
|
Net cash used in investing activities
|
(13,592
|
)
|
|
(41,200
|
)
|
|
27,608
|
|
|||
Net cash provided by (used in) financing activities
|
(72,450
|
)
|
|
17,320
|
|
|
(89,770
|
)
|
|||
Net change in cash and cash equivalents
|
$
|
(27,043
|
)
|
|
$
|
24,252
|
|
|
$
|
(51,295
|
)
|
Item 4.
|
Controls and Procedures
|
Exhibit Number
|
|
Description
|
10.1†
|
|
Asphalt Trucking Transportation Services Agreement, dated May 4, 2016 and effective as of January 1, 2016, by and among Western Refining Wholesale, LLC, Western Refining Company, L.P., and, for certain limited purposes stated therein, Western Refining Southwest, Inc.
|
31.1*
|
|
Certification Statement of Chief Executive Officer of the Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
31.2*
|
|
Certification Statement of Chief Financial Officer of the Company pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
32.1**
|
|
Certification Statement of Chief Executive Officer of the Company pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
32.2**
|
|
Certification Statement of Chief Financial Officer of the Company pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
101*
|
|
Interactive Data Files
|
|
|
|
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ Gary R. Dalke
|
|
Interim Chief Financial Officer
|
|
August 3, 2016
|
Gary R. Dalke
|
|
(Principal Financial Officer and Duly Authorized Signatory)
|
|
|
A.
|
Shipper produces performance grade asphalt binders and various other asphalt products at its refinery located in El Paso, Texas (the “
El Paso Refinery
”).
|
C.
|
Shipper markets performance grade asphalt binders and other asphalt products out of certain non-owned asphalt terminals located in El Paso, Texas, Albuquerque, New Mexico, and Phoenix, Tucson and Coolidge, Arizona (collectively, the “
Asphalt Terminals
”).
|
D.
|
Carrier owns and operates a truck-based asphalt transportation operation that can provide service to Shipper, using a combination of self-owned and Third Party trucks dispatched and scheduled by Carrier.
|
E.
|
Shipper desires that Carrier (i) transport or cause to be transported asphalt from the El Paso Refinery and/or other receipt points (“
Receipt Points
”) to the Asphalt Terminals and/or directly to customers located in Texas, New Mexico, and Arizona (collectively, the “
Delivery Points
”), (ii) coordinate the pickup and delivery of such asphalt from the Receipt Points to the Delivery Points, and (iii) provide Shipper with certain ancillary services with respect to such transportation services, subject to and upon the terms and conditions of this Agreement.
|
F.
|
Carrier will transport, coordinate the pickup of and deliver such asphalt, as well as provide the aforementioned ancillary services, subject to the terms and conditions of this Agreement.
|
1.
|
TRANSPORTATION SERVICES
|
2.
|
VOLUME COMMITMENT; RIGHT OF FIRST REFUSAL
|
3.
|
TERM OF AGREEMENT
|
4.
|
FEES; ADJUSTMENTS; AND REIMBURSEMENT FOR CAPITAL EXPENDITURES
|
5.
|
PAYMENTS
|
6.
|
SERVICES PROVIDED BY CARRIER; VOLUME LOSSES
|
7.
|
SAFETY/PREVENTION
|
8.
|
ACCIDENT REPORTING; HAZARDOUS CONDITIONS; SPILL RESPONSE PLAN
|
9.
|
INSURANCE
|
10.
|
INDEMNITY
|
11.
|
WAIVER OF CONSEQUENTIAL DAMAGES
|
12.
|
TERMINATION
|
13.
|
FORCE MAJEURE
|
14.
|
COMPLIANCE WITH LAWS
|
15.
|
OTHER PROVISIONS
|
|
|
WESTERN REFINING COMPANY, L.P.
By Western Refining GP, LLC, its general partner
By:
/s/ Mark J. Smith
Name: Mark J. Smith
Title: President – Refining and Marketing
Date: May 4, 2016
|
|
WESTERN REFINING WHOLESALE, LLC
By:
/s/ Matthew L. Yoder
Name: Matthew L. Yoder
Title: Senior Vice President - Operations
Date: May 4, 2016
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Western Refining Logistics, LP;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ Jeff A. Stevens
|
Jeff A. Stevens
Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Western Refining Logistics, LP;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ Gary R. Dalke
|
Gary R. Dalke
Interim Chief Financial Officer
|
1.
|
The Quarterly Report on Form 10-Q of the Company for the quarter ended
June 30, 2016
(the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Jeff A. Stevens
|
Jeff A. Stevens
Chief Executive Officer
|
1.
|
The Quarterly Report on Form 10-Q of the Company for the quarter ended
June 30, 2016
(the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Gary R. Dalke
|
Gary R. Dalke
Interim Chief Financial Officer
|