Financial Instruments and Off-Balance Sheet Risk (Tables)
|
12 Months Ended |
Dec. 31, 2016 |
|---|
| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
|
| Schedule of Fair Value, Financial Assets and Liabilities |
The following table presents all financial assets and financial liabilities of the Partnership measured at fair value on a recurring basis: | | | | | | | | | | | | | | | | | | As of December 31, 2016 | | Fair Value Measurement | | Quoted Prices in Active Markets Level 1 | | Significant Other Observable Inputs Level 2 | | Significant Unobservable Inputs Level 3 | Financial assets: | | | | | | | | Commodity fixed forwards | $ | 65,618 |
| | $ | — |
| | $ | 65,618 |
| | $ | — |
| Commodity swaps and options | — |
| | — |
| | — |
| | — |
| Commodity derivatives | 65,618 |
| | — |
| | 65,618 |
| | — |
| Interest rate swaps | 1,240 |
| | — |
| | 1,240 |
| | — |
| Total | $ | 66,858 |
| | $ | — |
| | $ | 66,858 |
| | $ | — |
| Financial liabilities: | | | | | | | | Commodity fixed forwards | $ | 94,875 |
| | $ | — |
| | $ | 94,875 |
| | $ | — |
| Commodity swaps and options | 103 |
| | — |
| | 103 |
| | — |
| Commodity derivatives | 94,978 |
| | — |
| | 94,978 |
| | — |
| Interest rate swaps | 336 |
| | — |
| | 336 |
| | — |
| Other | 25 |
| | — |
| | 25 |
| | — |
| Total | $ | 95,339 |
| | $ | — |
| | $ | 95,339 |
| | $ | — |
|
| | | | | | | | | | | | | | | | | | As of December 31, 2015 | | Fair Value Measurement | | Quoted Prices in Active Markets Level 1 | | Significant Other Observable Inputs Level 2 | | Significant Unobservable Inputs Level 3 | Financial assets: | | | | | | | | Commodity fixed forwards | $ | 157,389 |
| | $ | — |
| | $ | 157,389 |
| | $ | — |
| Commodity swaps and options | 51 |
| | — |
| | 51 |
| | — |
| Commodity derivatives | 157,440 |
| | — |
| | 157,440 |
| | — |
| Interest rate swaps | 274 |
| | — |
| | 274 |
| | — |
| Total | $ | 157,714 |
| | $ | — |
| | $ | 157,714 |
| | $ | — |
| Financial liabilities: | | | | | | | | Commodity fixed forwards | $ | 31,801 |
| | $ | — |
| | $ | 31,801 |
| | $ | — |
| Commodity swaps and options | 4,250 |
| | — |
| | 4,250 |
| | — |
| Commodity derivatives | 36,051 |
| | — |
| | 36,051 |
| | — |
| Interest rate swaps | 1,115 |
| | — |
| | 1,115 |
| | — |
| Other | 12 |
| | — |
| | 12 |
| | — |
| Total | $ | 37,178 |
| | $ | — |
| | $ | 37,178 |
| | $ | — |
|
|
| Offsetting Liabilities |
Information related to these offsetting arrangements as of December 31, 2016 and 2015 is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | As of December 31, 2016 | | | | | | | | Gross Amount Not Offset in the Balance Sheet | | Net Amount | | Gross Amounts of Recognized Assets/ Liabilities | Gross Amounts Offset in the Balance Sheet | Amounts of Assets/ Liabilities in Balance Sheet | Financial Instruments | | Cash Collateral Posted | | Commodity derivative assets | $ | 65,618 |
| | $ | — |
| | $ | 65,618 |
| | $ | (2,154 | ) | | $ | (209 | ) | | $ | 63,255 |
| Interest rate swap derivative assets | 1,240 |
| | — |
| | 1,240 |
| | — |
| | — |
| | 1,240 |
| Fair value of derivative assets | $ | 66,858 |
| | $ | — |
| | $ | 66,858 |
| | $ | (2,154 | ) | | $ | (209 | ) | | $ | 64,495 |
| | | | | | | | | | | | | Commodity derivative liabilities | $ | (94,978 | ) | | $ | — |
| | $ | (94,978 | ) | | $ | 2,154 |
| | $ | — |
| | $ | (92,824 | ) | Interest rate swap derivative liabilities | (336 | ) | | — |
| | (336 | ) | | — |
| | — |
| | (336 | ) | Other | (25 | ) | | — |
| | (25 | ) | | — |
| | — |
| | (25 | ) | Fair value of derivative liabilities | $ | (95,339 | ) | | $ | — |
| | $ | (95,339 | ) | | $ | 2,154 |
| | $ | — |
| | $ | (93,185 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | As of December 31, 2015 | | | | | | | | Gross Amount Not Offset in the Balance Sheet | | Net Amount | | Gross Amounts of Recognized Assets/ Liabilities | Gross Amounts Offset in the Balance Sheet | Amounts of Assets/ Liabilities in Balance Sheet | Financial Instruments | | Cash Collateral Posted | | Commodity derivative assets | $ | 157,440 |
| | $ | — |
| | $ | 157,440 |
| | $ | (1,811 | ) | | $ | (1,798 | ) | | $ | 153,831 |
| Interest rate swap derivative assets | 274 |
| | — |
| | 274 |
| | — |
| | — |
| | 274 |
| Fair value of derivative assets | $ | 157,714 |
| | $ | — |
| | $ | 157,714 |
| | $ | (1,811 | ) | | $ | (1,798 | ) | | $ | 154,105 |
| | | | | | | | | | | | | Commodity derivative liabilities | $ | (36,051 | ) | | $ | — |
| | $ | (36,051 | ) | | $ | 1,811 |
| | $ | — |
| | $ | (34,240 | ) | Interest rate swap derivative liabilities | (1,115 | ) | | — |
| | (1,115 | ) | | — |
| | — |
| | (1,115 | ) | Other | (12 | ) | | — |
| | (12 | ) | | — |
| | — |
| | (12 | ) | Fair value of derivative liabilities | $ | (37,178 | ) | | $ | — |
| | $ | (37,178 | ) | | $ | 1,811 |
| | $ | — |
| | $ | (35,367 | ) |
|
| Offsetting Assets |
Information related to these offsetting arrangements as of December 31, 2016 and 2015 is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | As of December 31, 2016 | | | | | | | | Gross Amount Not Offset in the Balance Sheet | | Net Amount | | Gross Amounts of Recognized Assets/ Liabilities | Gross Amounts Offset in the Balance Sheet | Amounts of Assets/ Liabilities in Balance Sheet | Financial Instruments | | Cash Collateral Posted | | Commodity derivative assets | $ | 65,618 |
| | $ | — |
| | $ | 65,618 |
| | $ | (2,154 | ) | | $ | (209 | ) | | $ | 63,255 |
| Interest rate swap derivative assets | 1,240 |
| | — |
| | 1,240 |
| | — |
| | — |
| | 1,240 |
| Fair value of derivative assets | $ | 66,858 |
| | $ | — |
| | $ | 66,858 |
| | $ | (2,154 | ) | | $ | (209 | ) | | $ | 64,495 |
| | | | | | | | | | | | | Commodity derivative liabilities | $ | (94,978 | ) | | $ | — |
| | $ | (94,978 | ) | | $ | 2,154 |
| | $ | — |
| | $ | (92,824 | ) | Interest rate swap derivative liabilities | (336 | ) | | — |
| | (336 | ) | | — |
| | — |
| | (336 | ) | Other | (25 | ) | | — |
| | (25 | ) | | — |
| | — |
| | (25 | ) | Fair value of derivative liabilities | $ | (95,339 | ) | | $ | — |
| | $ | (95,339 | ) | | $ | 2,154 |
| | $ | — |
| | $ | (93,185 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | As of December 31, 2015 | | | | | | | | Gross Amount Not Offset in the Balance Sheet | | Net Amount | | Gross Amounts of Recognized Assets/ Liabilities | Gross Amounts Offset in the Balance Sheet | Amounts of Assets/ Liabilities in Balance Sheet | Financial Instruments | | Cash Collateral Posted | | Commodity derivative assets | $ | 157,440 |
| | $ | — |
| | $ | 157,440 |
| | $ | (1,811 | ) | | $ | (1,798 | ) | | $ | 153,831 |
| Interest rate swap derivative assets | 274 |
| | — |
| | 274 |
| | — |
| | — |
| | 274 |
| Fair value of derivative assets | $ | 157,714 |
| | $ | — |
| | $ | 157,714 |
| | $ | (1,811 | ) | | $ | (1,798 | ) | | $ | 154,105 |
| | | | | | | | | | | | | Commodity derivative liabilities | $ | (36,051 | ) | | $ | — |
| | $ | (36,051 | ) | | $ | 1,811 |
| | $ | — |
| | $ | (34,240 | ) | Interest rate swap derivative liabilities | (1,115 | ) | | — |
| | (1,115 | ) | | — |
| | — |
| | (1,115 | ) | Other | (12 | ) | | — |
| | (12 | ) | | — |
| | — |
| | (12 | ) | Fair value of derivative liabilities | $ | (37,178 | ) | | $ | — |
| | $ | (37,178 | ) | | $ | 1,811 |
| | $ | — |
| | $ | (35,367 | ) |
|
| Summary of Realized and Unrealized (Losses) and Gains on Derivative Instruments for Commodity Risk Management |
The following table presents total realized and unrealized gains (losses) on derivative instruments utilized for commodity risk management purposes included in cost of products sold (exclusive of depreciation and amortization): | | | | | | | | | | | | | | Years Ended December 31, | | 2016 | | 2015 | | 2014 | Refined products contracts | $ | (25,316 | ) | | $ | 149,741 |
| | $ | 159,751 |
| Natural gas contracts | 7,153 |
| | 19,824 |
| | 30,372 |
| Total | $ | (18,163 | ) | | $ | 169,565 |
| | $ | 190,123 |
|
|
| Gross Volume of Commodity Derivative Instruments |
The following table presents the gross volume of commodity derivative instruments outstanding for the periods indicated: | | | | | | | | | | As of December 31, 2016 | | As of December 31, 2015 | | Refined Products (Barrels) | | Natural Gas (MMBTUs) | | Refined Products (Barrels) | | Natural Gas (MMBTUs) | Long contracts | 9,882 | | 131,240 | | 12,067 | | 123,711 | Short contracts | (13,940) | | (76,556) | | (16,558) | | (75,785) |
|
| Schedule of Interest Rate Swaps Notional Amount |
The Partnership's interest rate swap agreements outstanding as of December 31, 2016 were as follows: | | | | | | | | Interest Rate Swap Agreements | Beginning | | Ending | | Notional Amount | January 2016 | | January 2017 | | $ | 250,000 |
| September 2016 | | April 2017 | | $ | 25,000 |
| January 2017 | | January 2018 | | $ | 225,000 |
| January 2018 | | January 2019 | | $ | 200,000 |
|
|