| Overview
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June 30, 2015 | December 31, 2014 | ||||||
White Cliffs Pipeline, L.L.C. | $ | 281,627 | $ | 269,635 | |||
Glass Mountain Pipeline LLC | 144,431 | — | |||||
Total equity method investments | $ | 426,058 | $ | 269,635 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
White Cliffs Pipeline, L.L.C. | $ | 15,545 | $ | 12,291 | $ | 34,635 | $ | 23,371 | |||||||
Glass Mountain Pipeline LLC | 2,138 | — | 3,912 | — | |||||||||||
Total earnings from equity method investments | $ | 17,683 | $ | 12,291 | $ | 38,547 | $ | 23,371 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
White Cliffs Pipeline, L.L.C. | $ | 20,551 | $ | 14,467 | $ | 44,705 | $ | 28,052 | |||||||
Glass Mountain Pipeline LLC | 5,009 | — | 6,920 | — | |||||||||||
Total cash distributions received from equity method investments | $ | 25,560 | $ | 14,467 | $ | 51,625 | $ | 28,052 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenues | $ | 48,509 | $ | 34,533 | $ | 103,123 | $ | 67,807 | |||||||
Operating, general and administrative expenses | $ | 9,045 | $ | 5,539 | $ | 17,398 | $ | 12,307 | |||||||
Depreciation and amortization expense | $ | 8,587 | $ | 4,537 | $ | 17,125 | $ | 8,930 | |||||||
Net income | $ | 30,870 | $ | 24,457 | $ | 68,593 | $ | 46,570 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2015 | 2015 | ||||||
Revenues | $ | 9,788 | $ | 20,909 | |||
Cost of sales | $ | — | $ | 1,982 | |||
Operating, general and administrative expenses | $ | 1,473 | $ | 2,911 | |||
Depreciation and amortization expense | $ | 3,932 | $ | 7,976 | |||
Net income | $ | 4,381 | $ | 8,036 |
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• | On February 13, 2015, we acquired the Wattenberg Oil Trunkline ("WOT") and Glass Mountain Holding, LLC, which owns a 50% interest in Glass Mountain, from SemGroup in exchange for (i) cash of approximately $251.2 million, (ii) the issuance of 1.75 million common units, and (iii) an increase of the capital account of our general partner and a related issuance of general partner interest, to allow our general partner to maintain its 2% general partner interest in us. The WOT is a 75-mile, 12-inch diameter crude oil gathering pipeline system that transports crude oil from production facilities in the DJ Basin to White Cliffs' pipeline. It has a capacity of approximately 85,000 barrels per day. Glass Mountain owns a 215-mile crude oil pipeline in western and north central Oklahoma that is operated by Rose Rock. |
• | On June 23, 2014, we acquired the remaining 33% interest in SemCrude Pipeline, L.L.C. ("SCPL") from SemGroup for (i) cash of approximately $114.4 million, (ii) the issuance of 2.425 million common units, (iii) the issuance of 1.25 million Class A units, and (iv) an increase of the capital account of our general partner and a related issuance of general partner interest, to allow our general partner to maintain its 2% general partner interest in us. SCPL owns a 51% membership interest in White Cliffs. As the transaction was between entities under common control, we recorded our investment in SCPL based on SemGroup's historical cost. The purchase price in excess of historical cost was treated as an equity transaction with SemGroup, which reduced the partners' capital accounts of our general and limited partners on a pro-rata basis. |
• | On June 24, 2014, we acquired crude oil trucking assets from a subsidiary of Chesapeake Energy Corporation for $44.0 million in cash. |
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June 30, 2015 | December 31, 2014 | ||||||||||||||||||||||
Level 1 | Netting* | Total | Level 1 | Netting* | Total | ||||||||||||||||||
Assets | $ | 762 | $ | (317 | ) | $ | 445 | $ | 3,198 | $ | (1,637 | ) | $ | 1,561 | |||||||||
Liabilities | $ | 317 | $ | (317 | ) | $ | — | $ | 1,637 | $ | (1,637 | ) | $ | — |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||
Sales | 7,721 | 1,135 | 13,452 | 1,950 | |||||||
Purchases | 7,508 | 1,005 | 13,413 | 1,815 |
June 30, 2015 | December 31, 2014 | ||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||
Commodity contracts | $ | 445 | $ | — | $ | 1,561 | $ | — |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Commodity contracts | $ | (2,202 | ) | $ | (1,942 | ) | $ | (2,846 | ) | $ | (2,749 | ) |
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June 30, 2015 | December 31, 2014 | ||||||
Rose Rock 5.625% senior unsecured notes due 2022 | $ | 400,000 | $ | 400,000 | |||
Rose Rock 5.625% senior unsecured notes due 2023 | 344,276 | — | |||||
Rose Rock revolving credit facility | — | 32,000 | |||||
Capital leases | 107 | 132 | |||||
Total long-term debt | $ | 744,383 | $ | 432,132 | |||
Less: current portion of long-term debt | 44 | 40 | |||||
Noncurrent portion of long-term debt | $ | 744,339 | $ | 432,092 |
Year | Percentage | |
2019 | 102.813% | |
2020 | 101.406% | |
2021 and thereafter | 100.000% |
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Volume (Barrels) | Value | |||||
Fixed price purchases | 1,935 | $ | 114,568 | |||
Fixed price sales | 2,660 | $ | 159,148 | |||
Floating price purchases | 15,960 | $ | 930,753 | |||
Floating price sales | 17,876 | $ | 1,063,405 |
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Common Units - Public | Common Units - SemGroup | Subordinated Units | Class A Units | General Partner Interest | Total Partners' Capital | ||||||||||||||||||
Balance at December 31, 2014 | $ | 69,929 | $ | 155,367 | $ | (60,760 | ) | $ | 76,321 | $ | 67,632 | $ | 308,489 | ||||||||||
Net income | 9,446 | 12,157 | — | — | 10,065 | 31,668 | |||||||||||||||||
Equity issuance | 89,119 | 70,560 | — | — | 3,259 | 162,938 | |||||||||||||||||
Equity adjustment related to common control acquisition | (51,452 | ) | (39,246 | ) | (26,838 | ) | — | (61,580 | ) | (179,116 | ) | ||||||||||||
Conversion to common units | — | (16,479 | ) | 92,800 | (76,321 | ) | — | — | |||||||||||||||
Unvested distribution equivalent rights | (98 | ) | — | — | — | — | (98 | ) | |||||||||||||||
Cash distributions to partners | (19,261 | ) | (19,700 | ) | (5,202 | ) | — | (8,990 | ) | (53,153 | ) | ||||||||||||
Non-cash equity compensation | 655 | — | — | — | — | 655 | |||||||||||||||||
Balance at June 30, 2015 | $ | 98,338 | $ | 162,659 | $ | — | $ | — | $ | 10,386 | $ | 271,383 |
Quarter Ended | Record Date | Payment Date | Distribution Per Unit | |||
December 31, 2013 | February 4, 2014 | February 14, 2014 | $0.4650 | |||
March 31, 2014 | May 5, 2014 | May 15, 2014 | $0.4950 | |||
June 30, 2014 | August 4, 2014 | August 14, 2014 | $0.5350 | |||
September 30, 2014 | November 4, 2014 | November 14, 2014 | $0.5750 | |||
December 31, 2014 | February 3, 2015 | February 13, 2015 | $0.6200 | |||
March 31, 2015 | May 5, 2015 | May 15, 2015 | $0.6350 | |||
June 30, 2015 | August 4, 2015 | August 14, 2015 | $0.6500 |
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Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Net income attributable to Rose Rock Midstream, L.P. | $ | 17,068 | $ | 11,006 | $ | 31,668 | $ | 23,556 | |||||||
Less: General partner's incentive distribution earned | 4,981 | 888 | 9,431 | 1,376 | |||||||||||
Less: General partner's 2.0% ownership | 342 | 179 | 634 | 496 | |||||||||||
Net income allocated to limited partners | $ | 11,745 | $ | 9,939 | $ | 21,603 | $ | 21,684 | |||||||
Numerator for basic and diluted earnings per limited partner unit (*): | |||||||||||||||
Allocation of net income among limited partner interests: | |||||||||||||||
Net income allocable to common units | $ | 11,745 | $ | 7,513 | $ | 21,603 | $ | 15,619 | |||||||
Net income allocable to subordinated units | — | 3,063 | — | 6,860 | |||||||||||
Net loss allocable to Class A units | — | (637 | ) | — | (795 | ) | |||||||||
Net income allocated to limited partners | $ | 11,745 | $ | 9,939 | $ | 21,603 | $ | 21,684 | |||||||
Denominator for basic and diluted earnings per limited partner unit: | |||||||||||||||
Basic weighted average number of common units outstanding | 36,790 | 18,336 | 35,803 | 18,243 | |||||||||||
Effect of non-vested restricted units | 49 | 61 | 46 | 54 | |||||||||||
Diluted weighted average number of common units outstanding | 36,839 | 18,397 | 35,849 | 18,297 | |||||||||||
Basic and diluted weighted average number of subordinated units outstanding | — | 8,390 | — | 8,390 | |||||||||||
Basic and diluted weighted average number of Class A units outstanding | — | 2,596 | — | 2,548 | |||||||||||
Net income (loss) per limited partner unit: | |||||||||||||||
Common unit (basic) | $ | 0.32 | $ | 0.41 | $ | 0.60 | $ | 0.86 | |||||||
Common unit (diluted) | $ | 0.32 | $ | 0.41 | $ | 0.60 | $ | 0.85 | |||||||
Subordinated unit (basic and diluted) | $ | — | $ | 0.37 | $ | — | $ | 0.82 | |||||||
Class A unit (basic and diluted) | $ | — | $ | (0.25 | ) | $ | — | $ | (0.31 | ) |
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June 30, 2015 | December 31, 2014 | ||||||
White Cliffs Pipeline, L.L.C. | $ | 281,627 | $ | 269,635 | |||
Glass Mountain Pipeline LLC | 144,431 | — | |||||
Total equity method investments | $ | 426,058 | $ | 269,635 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
White Cliffs Pipeline, L.L.C. | $ | 15,545 | $ | 12,291 | $ | 34,635 | $ | 23,371 | |||||||
Glass Mountain Pipeline LLC | 2,138 | — | 3,912 | — | |||||||||||
Total earnings from equity method investments | $ | 17,683 | $ | 12,291 | $ | 38,547 | $ | 23,371 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
White Cliffs Pipeline, L.L.C. | $ | 20,551 | $ | 14,467 | $ | 44,705 | $ | 28,052 | |||||||
Glass Mountain Pipeline LLC | 5,009 | — | 6,920 | — | |||||||||||
Total cash distributions received from equity method investments | $ | 25,560 | $ | 14,467 | $ | 51,625 | $ | 28,052 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenues | $ | 48,509 | $ | 34,533 | $ | 103,123 | $ | 67,807 | |||||||
Operating, general and administrative expenses | $ | 9,045 | $ | 5,539 | $ | 17,398 | $ | 12,307 | |||||||
Depreciation and amortization expense | $ | 8,587 | $ | 4,537 | $ | 17,125 | $ | 8,930 | |||||||
Net income | $ | 30,870 | $ | 24,457 | $ | 68,593 | $ | 46,570 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2015 | 2015 | ||||||
Revenues | $ | 9,788 | $ | 20,909 | |||
Cost of sales | $ | — | $ | 1,982 | |||
Operating, general and administrative expenses | $ | 1,473 | $ | 2,911 | |||
Depreciation and amortization expense | $ | 3,932 | $ | 7,976 | |||
Net income | $ | 4,381 | $ | 8,036 |
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June 30, 2015 | December 31, 2014 | ||||||||||||||||||||||
Level 1 | Netting* | Total | Level 1 | Netting* | Total | ||||||||||||||||||
Assets | $ | 762 | $ | (317 | ) | $ | 445 | $ | 3,198 | $ | (1,637 | ) | $ | 1,561 | |||||||||
Liabilities | $ | 317 | $ | (317 | ) | $ | — | $ | 1,637 | $ | (1,637 | ) | $ | — |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||
Sales | 7,721 | 1,135 | 13,452 | 1,950 | |||||||
Purchases | 7,508 | 1,005 | 13,413 | 1,815 |
June 30, 2015 | December 31, 2014 | ||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||
Commodity contracts | $ | 445 | $ | — | $ | 1,561 | $ | — |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Commodity contracts | $ | (2,202 | ) | $ | (1,942 | ) | $ | (2,846 | ) | $ | (2,749 | ) |
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June 30, 2015 | December 31, 2014 | ||||||
Rose Rock 5.625% senior unsecured notes due 2022 | $ | 400,000 | $ | 400,000 | |||
Rose Rock 5.625% senior unsecured notes due 2023 | 344,276 | — | |||||
Rose Rock revolving credit facility | — | 32,000 | |||||
Capital leases | 107 | 132 | |||||
Total long-term debt | $ | 744,383 | $ | 432,132 | |||
Less: current portion of long-term debt | 44 | 40 | |||||
Noncurrent portion of long-term debt | $ | 744,339 | $ | 432,092 |
Year | Percentage | |
2019 | 102.813% | |
2020 | 101.406% | |
2021 and thereafter | 100.000% |
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Volume (Barrels) | Value | |||||
Fixed price purchases | 1,935 | $ | 114,568 | |||
Fixed price sales | 2,660 | $ | 159,148 | |||
Floating price purchases | 15,960 | $ | 930,753 | |||
Floating price sales | 17,876 | $ | 1,063,405 |
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Common Units - Public | Common Units - SemGroup | Subordinated Units | Class A Units | General Partner Interest | Total Partners' Capital | ||||||||||||||||||
Balance at December 31, 2014 | $ | 69,929 | $ | 155,367 | $ | (60,760 | ) | $ | 76,321 | $ | 67,632 | $ | 308,489 | ||||||||||
Net income | 9,446 | 12,157 | — | — | 10,065 | 31,668 | |||||||||||||||||
Equity issuance | 89,119 | 70,560 | — | — | 3,259 | 162,938 | |||||||||||||||||
Equity adjustment related to common control acquisition | (51,452 | ) | (39,246 | ) | (26,838 | ) | — | (61,580 | ) | (179,116 | ) | ||||||||||||
Conversion to common units | — | (16,479 | ) | 92,800 | (76,321 | ) | — | — | |||||||||||||||
Unvested distribution equivalent rights | (98 | ) | — | — | — | — | (98 | ) | |||||||||||||||
Cash distributions to partners | (19,261 | ) | (19,700 | ) | (5,202 | ) | — | (8,990 | ) | (53,153 | ) | ||||||||||||
Non-cash equity compensation | 655 | — | — | — | — | 655 | |||||||||||||||||
Balance at June 30, 2015 | $ | 98,338 | $ | 162,659 | $ | — | $ | — | $ | 10,386 | $ | 271,383 |
Quarter Ended | Record Date | Payment Date | Distribution Per Unit | |||
December 31, 2013 | February 4, 2014 | February 14, 2014 | $0.4650 | |||
March 31, 2014 | May 5, 2014 | May 15, 2014 | $0.4950 | |||
June 30, 2014 | August 4, 2014 | August 14, 2014 | $0.5350 | |||
September 30, 2014 | November 4, 2014 | November 14, 2014 | $0.5750 | |||
December 31, 2014 | February 3, 2015 | February 13, 2015 | $0.6200 | |||
March 31, 2015 | May 5, 2015 | May 15, 2015 | $0.6350 | |||
June 30, 2015 | August 4, 2015 | August 14, 2015 | $0.6500 |
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Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Net income attributable to Rose Rock Midstream, L.P. | $ | 17,068 | $ | 11,006 | $ | 31,668 | $ | 23,556 | |||||||
Less: General partner's incentive distribution earned | 4,981 | 888 | 9,431 | 1,376 | |||||||||||
Less: General partner's 2.0% ownership | 342 | 179 | 634 | 496 | |||||||||||
Net income allocated to limited partners | $ | 11,745 | $ | 9,939 | $ | 21,603 | $ | 21,684 | |||||||
Numerator for basic and diluted earnings per limited partner unit (*): | |||||||||||||||
Allocation of net income among limited partner interests: | |||||||||||||||
Net income allocable to common units | $ | 11,745 | $ | 7,513 | $ | 21,603 | $ | 15,619 | |||||||
Net income allocable to subordinated units | — | 3,063 | — | 6,860 | |||||||||||
Net loss allocable to Class A units | — | (637 | ) | — | (795 | ) | |||||||||
Net income allocated to limited partners | $ | 11,745 | $ | 9,939 | $ | 21,603 | $ | 21,684 | |||||||
Denominator for basic and diluted earnings per limited partner unit: | |||||||||||||||
Basic weighted average number of common units outstanding | 36,790 | 18,336 | 35,803 | 18,243 | |||||||||||
Effect of non-vested restricted units | 49 | 61 | 46 | 54 | |||||||||||
Diluted weighted average number of common units outstanding | 36,839 | 18,397 | 35,849 | 18,297 | |||||||||||
Basic and diluted weighted average number of subordinated units outstanding | — | 8,390 | — | 8,390 | |||||||||||
Basic and diluted weighted average number of Class A units outstanding | — | 2,596 | — | 2,548 | |||||||||||
Net income (loss) per limited partner unit: | |||||||||||||||
Common unit (basic) | $ | 0.32 | $ | 0.41 | $ | 0.60 | $ | 0.86 | |||||||
Common unit (diluted) | $ | 0.32 | $ | 0.41 | $ | 0.60 | $ | 0.85 | |||||||
Subordinated unit (basic and diluted) | $ | — | $ | 0.37 | $ | — | $ | 0.82 | |||||||
Class A unit (basic and diluted) | $ | — | $ | (0.25 | ) | $ | — | $ | (0.31 | ) |
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