Company Quick10K Filing
Delek Logistics Partners
Price1.00 EPS-94,808,000
Shares-0 P/E-0
MCap-0 P/FCF-0
Net Debt-6 EBIT130
TEV-6 TEV/EBIT-0
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-06-30 Filed 2020-08-07
10-Q 2020-03-31 Filed 2020-05-08
10-K 2019-12-31 Filed 2020-02-28
10-Q 2019-09-30 Filed 2019-11-08
10-Q 2019-06-30 Filed 2019-08-08
10-Q 2019-03-31 Filed 2019-05-09
10-K 2018-12-31 Filed 2019-03-01
10-Q 2018-09-30 Filed 2018-11-09
10-Q 2018-06-30 Filed 2018-08-09
10-Q 2018-03-31 Filed 2018-05-10
10-K 2017-12-31 Filed 2018-03-01
10-Q 2017-09-30 Filed 2017-11-09
10-Q 2017-06-30 Filed 2017-08-07
10-Q 2017-03-31 Filed 2017-05-09
10-K 2016-12-31 Filed 2017-02-28
10-Q 2016-09-30 Filed 2016-11-03
10-Q 2016-06-30 Filed 2016-08-05
10-Q 2016-03-31 Filed 2016-05-06
10-K 2015-12-31 Filed 2016-02-29
10-Q 2015-06-30 Filed 2015-11-06
10-Q 2015-06-30 Filed 2015-08-06
10-Q 2015-03-31 Filed 2015-05-08
10-K 2014-12-31 Filed 2015-02-26
10-Q 2014-09-30 Filed 2014-11-06
10-Q 2014-06-30 Filed 2014-08-08
10-Q 2014-03-31 Filed 2014-05-08
10-K 2013-12-31 Filed 2014-03-05
10-Q 2013-09-30 Filed 2013-11-07
10-Q 2013-06-30 Filed 2013-08-08
10-Q 2013-03-31 Filed 2013-05-09
10-K 2012-12-31 Filed 2013-03-12
10-Q 2012-09-30 Filed 2012-12-14
8-K 2020-09-01 Regulation FD, Exhibits
8-K 2020-08-12
8-K 2020-08-11
8-K 2020-08-04
8-K 2020-07-27 Regulation FD, Exhibits
8-K 2020-07-26 Officers, Regulation FD, Exhibits
8-K 2020-05-21
8-K 2020-05-15
8-K 2020-05-05
8-K 2020-04-21
8-K 2020-04-06
8-K 2020-03-31
8-K 2020-03-31
8-K 2020-02-25
8-K 2020-02-25
8-K 2020-01-24
8-K 2019-12-10
8-K 2019-11-04
8-K 2019-10-25
8-K 2019-08-16
8-K 2019-08-05
8-K 2019-07-24
8-K 2019-05-28
8-K 2019-05-14
8-K 2019-05-06
8-K 2019-04-26
8-K 2019-03-05
8-K 2019-02-19
8-K 2019-01-24
8-K 2018-12-03
8-K 2018-11-13
8-K 2018-11-06
8-K 2018-10-23
8-K 2018-09-28
8-K 2018-08-24
8-K 2018-08-13
8-K 2018-08-08
8-K 2018-08-07
8-K 2018-07-24
8-K 2018-05-22
8-K 2018-05-21
8-K 2018-05-07
8-K 2018-04-26
8-K 2018-03-28
8-K 2018-03-20
8-K 2018-03-20
8-K 2018-03-02
8-K 2018-03-01
8-K 2018-02-26
8-K 2018-02-16
8-K 2018-01-23

DKL 10Q Quarterly Report

Part I - Financial Information
Item 1. Financial Statements
Note 1 - Organization and Basis of Presentation
Note 2 - Acquisitions
Note 3 - Related Party Transactions
Note 4 - Revenues
Note 5 - Net Income per Unit
Note 6 - Inventory
Note 7 - Long - Term Obligations
Note 8 - Equity
Note 9 - Equity Based Compensation
Note 10 - Equity Method Investments
Note 11 - Segment Data
Note 12 - Income Taxes
Note 13 - Commitments and Contingencies
Note 14 - Leases
Note 15 - Subsequent Events
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 6. Exhibits
EX-31.1 dkl-ex311xceocertifica.htm
EX-31.2 dkl-ex312xcfocertifica.htm
EX-32.1 dkl-ex321xceocertifica.htm
EX-32.2 dkl-ex322xcfocertifica.htm

Delek Logistics Partners Earnings 2020-06-30

Balance SheetIncome StatementCash Flow
77058740422138-1452012201420172020
Assets, Equity
2502001501005002012201420172020
Rev, G Profit, Net Income
20011632-52-136-2202012201420172020
Ops, Inv, Fin

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dk:Truck_Trailer dk:storage_tank utreg:bbl utreg:mi dk:joint_venture dk:segment dk:oil_releases
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(Mark One)
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
 
 
 
 
 
 
For the quarterly period ended
June 30, 2020
 
or
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
 
 
 
 
For the transition period from                      to                     
Commission file number 001-35721
DELEK LOGISTICS PARTNERS, LP
(Exact name of registrant as specified in its charter)
Delaware
globe05.jpg
45-5379027
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
 
 
7102 Commerce Way
Brentwood
Tennessee
37027
(Address of principal executive offices)
 
 
(Zip Code)
(615) 771-6701
(Registrant’s telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class
Trading Symbol
Name of Each Exchange on Which Registered
Common Units Representing Limited Partnership Interests
DKL
New York Stock Exchange
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer 
Smaller reporting company 
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.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No
At July 31, 2020, there were 29,433,239 common limited partner units and 600,678 general partner units outstanding.


Table of Contents

Delek Logistics Partners, LP
Quarterly Report on Form 10-Q
For the Quarterly Period Ended June 30, 2020

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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2 |  
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Financial Statements

Part I - FINANCIAL INFORMATION
Item 1. Financial Statements
Delek Logistics Partners, LP
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands, except unit and per unit data)
 
June 30, 2020
 
December 31, 2019
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
16,196

 
$
5,545

Accounts receivable
15,907

 
13,204

Accounts receivable from related parties
8,755

 

Inventory
2,140

 
12,617

Other current assets
499

 
2,204

Total current assets
43,497

 
33,570

Property, plant and equipment:
 
 
 
Property, plant and equipment
680,969

 
461,325

Less: accumulated depreciation
(207,225
)
 
(166,281
)
Property, plant and equipment, net
473,744

 
295,044

Equity method investments
255,323

 
246,984

Operating lease right-of-use assets
18,884

 
3,745

Goodwill
12,203

 
12,203

Marketing Contract Intangible, net
127,393

 
130,999

Rights-of-way
35,698

 
15,597

Other non-current assets
6,995

 
6,305

Total assets
$
973,737

 
$
744,447

LIABILITIES AND DEFICIT
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
1,795

 
$
12,471

Accounts payable to related parties

 
8,898

Interest payable
2,596

 
2,572

Excise and other taxes payable
4,330

 
3,941

Current portion of operating lease liabilities
5,793

 
1,435

Accrued expenses and other current liabilities
3,461

 
5,765

Total current liabilities
17,975

 
35,082

Non-current liabilities:
 
 
 
Long-term debt
995,200

 
833,110

Asset retirement obligations
5,802

 
5,588

Deferred tax liabilities
1,158

 
215

Operating lease liabilities, net of current portion
13,091

 
2,310

Other non-current liabilities
18,826

 
19,261

Total non-current liabilities
1,034,077

 
860,484

Equity (Deficit):
 
 
 
Common unitholders - public; 8,687,371 units issued and outstanding at June 30, 2020 (9,131,579 at December 31, 2019)
160,870

 
164,436

Common unitholders - Delek Holdings; 20,745,868 units issued and outstanding at June 30, 2020 (15,294,046 at December 31, 2019)
(235,961
)
 
(310,513
)
General partner - 600,678 units issued and outstanding at June 30, 2020 (498,482 at December 31, 2019)
(3,224
)
 
(5,042
)
Total deficit
(78,315
)
 
(151,119
)
Total liabilities and deficit
$
973,737

 
$
744,447

 
See accompanying notes to the condensed consolidated financial statements

           
3 |  
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Financial Statements

Delek Logistics Partners, LP
Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited)
(in thousands, except unit and per unit data)
 
Three months ended
 
Six months ended
 
June 30,
 
June 30,
 
2020
 
2019
 
2020
 
2019
Net revenues:
 
 
 
 
 
 
 
   Affiliates (1)
$
87,629

 
$
61,918

 
$
194,328

 
$
124,883

   Third party
30,008

 
93,424

 
86,710

 
182,942

     Net revenues
117,637

 
155,342

 
281,038

 
307,825

Cost of sales:
 
 
 
 
 
 
 
Cost of materials and other
43,892

 
93,854

 
145,185

 
190,119

Operating expenses (excluding depreciation and amortization presented below)
11,623

 
16,521

 
25,577

 
31,828

Depreciation and amortization
8,223

 
6,188

 
14,026

 
12,312

Total cost of sales
63,738

 
116,563

 
184,788

 
234,259

Operating expenses related to wholesale business (excluding depreciation and amortization presented below)
826

 
806

 
1,616

 
1,557

General and administrative expenses
4,721

 
5,293

 
10,851

 
9,766

Depreciation and amortization
471

 
451

 
967

 
901

Other operating income, net

 
(27
)
 
(107
)
 
(25
)
Total operating costs and expenses
69,756

 
123,086

 
198,115

 
246,458

Operating income
47,881

 
32,256

 
82,923

 
61,367

Interest expense, net
10,670

 
11,354

 
22,494

 
22,655

Income from equity method investments
(6,462
)
 
(4,515
)
 
(12,015
)
 
(6,466
)
Other (income) expense, net
(2
)
 
461

 
(2
)
 
461

Total non-operating expenses, net
4,206

 
7,300

 
10,477

 
16,650

Income before income tax expense
43,675

 
24,956

 
72,446

 
44,717

Income tax (benefit) expense
(740
)
 
71

 
235

 
136

Net income attributable to partners
$
44,415

 
$
24,885

 
$
72,211

 
$
44,581

Comprehensive income attributable to partners
$
44,415

 
$
24,885

 
$
72,211

 
$
44,581

 
 
 
 
 
 
 
 
Less: General partner's interest in net income, including incentive distribution rights
9,647

 
8,079

 
18,724

 
15,348

Limited partners' interest in net income
$
34,768

 
$
16,806

 
$
53,487

 
$
29,233

 
 
 
 
 
 
 
 
Net income per limited partner unit:
 
 
 
 
 
 
 
Common units - basic
$
1.18

 
$
0.69

 
$
1.98

 
$
1.20

Common units - diluted
$
1.18

 
$
0.69

 
$
1.98

 
$
1.20

 
 
 
 
 
 
 
 
Weighted average limited partner units outstanding:
 
 
 
 
 
 
 
Common units - basic
29,427,298

 
24,409,359

 
26,953,934

 
24,408,270

Common units - diluted
29,430,555

 
24,414,343

 
26,956,523

 
24,414,077

 
 
 
 
 
 
 
 
Cash distributions per limited partner unit
$
0.900

 
$
0.850

 
$
1.790

 
$
1.670


(1) 
See Note 3 for a description of our material affiliate revenue transactions.
See accompanying notes to the condensed consolidated financial statements

           
4 |  
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Financial Statements

Delek Logistics Partners, LP
Condensed Consolidated Statements of Partners' Equity (Deficit) (Unaudited)
(in thousands)
 
Common - Public
 
Common - Delek Holdings
 
General Partner
 
Total
Balance at March 31, 2020
$
158,332

 
$
(199,943
)
 
$
(2,785
)
 
$
(44,396
)
Cash distributions (1)
(7,753
)
 
(14,014
)
 
(9,139
)
 
(30,906
)
General partner units issued to maintain 2% interest

 

 
4

 
4

Net income attributable to partners
10,262

 
24,506

 
9,647

 
44,415

Distribution to Delek Holdings for Trucking Assets Acquisition

 
(46,607
)
 
(951
)
 
(47,558
)
Other
29

 
97

 

 
126

Balance at June 30, 2020
$
160,870

 
$
(235,961
)
 
$
(3,224
)
 
$
(78,315
)

(1) Cash distributions include a nominal amount related to distribution equivalents on vested phantom units.

 
Common - Public
 
Common -
Delek Holdings
 
General Partner
 
Total
Balance at March 31, 2019
$
168,388

 
$
(303,902
)
 
$
(6,391
)
 
(141,905
)
Cash distributions (1)
(7,473
)
 
(12,541
)
 
(7,424
)
 
(27,438
)
General partner units issued to maintain 2% interest

 

 
6

 
6

Net income attributable to partners
6,279

 
10,527

 
8,079

 
24,885

Other
60

 
89

 
3

 
152

Balance at June 30, 2019
$
167,254

 
$
(305,827
)
 
$
(5,727
)
 
$
(144,300
)
(1) Cash distributions include a nominal amount related to distribution equivalents on vested phantom units.     

 
Common - Public
 
Common -
Delek Holdings
 
General Partner
 
Total
Balance at December 31, 2019
$
164,436

 
$
(310,513
)
 
$
(5,042
)
 
$
(151,119
)
Cash distributions
(15,835
)
 
(27,549
)
 
(18,156
)
 
(61,540
)
General partner units issued to maintain 2% interest

 

 
10

 
10

Net income attributable to partners
16,914

 
36,573

 
18,724

 
72,211

Delek Holdings Unit purchases
(4,979
)
 
4,979

 

 

Issuance of units in connection with the Big Spring Gathering Assets Acquisition

 
107,324

 
2,190

 
109,514

Distribution to Delek Holdings for Trucking Assets Acquisition

 
(46,607
)
 
(951
)
 
(47,558
)
Other
334

 
(168
)
 
1

 
167

Balance at June 30, 2020
$
160,870

 
$
(235,961
)
 
$
(3,224
)
 
$
(78,315
)

 
Common - Public
 
Common -
Delek Holdings
 
General Partner
 
Total
Balance at December 31, 2018
$
171,023

 
$
(299,360
)
 
$
(6,486
)
 
$
(134,823
)
Cash distributions
(14,825
)
 
(24,929
)
 
(14,603
)
 
(54,357
)
General partner units issued to maintain 2% interest

 

 
8

 
8

Net income attributable to partners
10,943

 
18,289

 
15,349

 
44,581

Other
113

 
173

 
5

 
291

Balance at June 30, 2019
$
167,254

 
$
(305,827
)
 
$
(5,727
)
 
$
(144,300
)

See accompanying notes to the condensed consolidated financial statements

           
5 |  
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Financial Statements

Delek Logistics Partners, LP
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
 
Six Months Ended June 30,
 
2020
 
2019
Cash flows from operating activities:
 
 
 
Net income
$
72,211

 
$
44,581

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
14,993

 
13,213

Non-cash lease expense
640

 
1,409

Amortization of customer contract intangible assets
3,605

 
3,605

Amortization of deferred revenue
(945
)
 
(803
)
Amortization of deferred financing costs and debt discount
1,172

 
1,480

Accretion of asset retirement obligations
214

 
198

Income from equity method investments
(12,015
)
 
(6,466
)
Dividends from equity method investments
12,500

 
3,833

Gain on asset disposals
(107
)
 
(25
)
Deferred income taxes
943

 
(3
)
Other non-cash adjustments
168

 
290

Changes in assets and liabilities:
 
 
 
Accounts receivable
(2,703
)
 
(5,266
)
Inventories and other current assets
12,182

 
1,311

Accounts payable and other current liabilities
(11,890
)
 
(8,928
)
Accounts receivable/payable to related parties
(17,653
)
 
1,803

Non-current assets and liabilities, net
(934
)
 
1,591

Net cash provided by operating activities
72,381

 
51,823

Cash flows from investing activities:
 
 
 
Asset acquisitions net of assumed liabilities
(100,527
)
 

Purchases of property, plant and equipment
(4,997
)
 
(2,437
)
Proceeds from sales of property, plant and equipment
107

 
75

Distributions from equity method investments
1,690

 
804

Equity method investment contributions
(10,515
)
 
(134,998
)
Net cash used in investing activities
(114,242
)
 
(136,556
)
Cash flows from financing activities:
 
 
 
Proceeds from issuance of additional units to maintain 2% General Partner interest
10

 
8

Distributions to general partner
(18,156
)
 
(14,603
)
Distributions to common unitholders - public
(15,835
)
 
(14,825
)
Distributions to common unitholders - Delek Holdings
(27,549
)
 
(24,929
)
Distributions to Delek Holdings unitholders and general partner related to Trucking Assets Acquisition
(47,558
)
 

Proceeds from revolving credit facility
413,000

 
364,300

Payments on revolving credit facility
(251,400
)
 
(224,300
)
Net cash provided by financing activities
52,512

 
85,651

Net increase in cash and cash equivalents
10,651

 
918

Cash and cash equivalents at the beginning of the period
5,545

 
4,522

Cash and cash equivalents at the end of the period
$
16,196

 
$
5,440

Supplemental disclosures of cash flow information:
 
 
 
Cash paid during the period for:
 
 
 
Interest
$
21,298

 
$
21,068

Income taxes
$
26

 
$
141

Non-cash investing activities:
 

 
 

Decrease in accrued capital expenditures
(1,317
)
 
$
(191
)
Equity issuance to Delek Holdings unitholders in connection with Big Spring Gathering Assets Acquisition
$
109,514

 
$

Non-cash financing activities:
 
 
 
Non-cash lease liability arising from obtaining right of use assets during the period
15,779

 
$

Non-cash lease liability arising from recognition of right of use assets upon adoption of ASU 2016-02
$

 
$
20,202



See accompanying notes to the condensed consolidated financial statements

           
6 |  
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Notes to Condensed Consolidated Financial Statements (Unaudited)


Note 1 - Organization and Basis of Presentation
As used in this report, the terms "Delek Logistics Partners, LP," the "Partnership," "we," "us," or "our" may refer to Delek Logistics Partners, LP, one or more of its consolidated subsidiaries or all of them taken as a whole.
The Partnership is a Delaware limited partnership formed in April 2012 by Delek US Holdings, Inc. ("Delek Holdings") and its subsidiary Delek Logistics GP, LLC, our general partner (our "general partner").
Effective May 1, 2020, the Partnership, through its wholly-owned subsidiary DKL Transportation, LLC, acquired Delek Trucking, LLC consisting of certain leased and owned tractors and trailers and related assets (the "Trucking Assets") from Delek Holdings, such transaction the "Trucking Assets Acquisition." See Note 2 for further information.
In addition, effective March 31, 2020, the Partnership, through its wholly-owned subsidiary DKL Permian Gathering, LLC, acquired from Delek Holdings a crude oil gathering system located in Howard, Borden and Martin Counties, Texas (the "Big Spring Gathering System"), and certain related assets, such transaction the "Big Spring Gathering Assets Acquisition." See Note 2 for further information.
Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") have been condensed or omitted, although management believes that the disclosures herein are adequate to make the financial information presented not misleading. Our unaudited condensed consolidated financial statements have been prepared in conformity with U.S. GAAP applied on a consistent basis with those of the annual audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2019 (our "Annual Report on Form 10-K"), filed with the Securities and Exchange Commission (the "SEC") on February 27, 2020 and in accordance with the rules and regulations of the SEC. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2019 included in our Annual Report on Form 10-K.
All adjustments necessary for a fair presentation of the financial position and the results of operations for the interim periods presented have been included. All intercompany accounts and transactions have been eliminated. Such intercompany transactions do not include those with Delek Holdings' or our general partner, which are presented as related parties in these accompanying condensed consolidated financial statements. All adjustments are of a normal, recurring nature. Operating results for the interim period should not be viewed as representative of results that may be expected for any future interim period or for the full year.
Reclassifications
Certain immaterial reclassifications have been made to prior period presentation in order to conform to the current period presentation.
Risks and Uncertainties Arising from the COVID-19 Pandemic
The recent outbreak of COVID-19 and its development into a pandemic in March 2020 (the "COVID-19 Pandemic") has resulted in significant economic disruption globally, including in the U.S. and specific geographic areas where we operate. Actions taken by various governmental authorities, individuals and companies around the world to prevent the spread of COVID-19 through social distancing have restricted travel, many business operations, public gatherings and the overall level of individual movement and in-person interaction across the globe. This has in turn significantly reduced global economic activity and resulted in airlines dramatically cutting back on flights and a decrease in motor vehicle use at a time when seasonal driving patterns typically result in an increase of consumer demand for gasoline. As a result, there has also been a decline in the demand for, and thus also the market prices of, crude oil and certain products, particularly refined petroleum products that we receive revenue for the transportation and storage services we provide. In addition, the decline in demand impacted the sales volumes in our wholesale marketing business. In April and June 2020, an agreement was reached to cut oil production between the members of the Organization of Petroleum Exporting Countries ("OPEC") and other leading oil producing countries (together with OPEC, “OPEC+”), as part of the efforts to resolve the oil production disputes that significantly affected crude oil prices beginning in the first quarter of 2020 and to provide stability in the oil markets. While OPEC+ have reached an agreement to cut oil production, there is uncertainty about the duration of the COVID-19 Pandemic which caused storage constraints, in the early part of the second quarter of 2020, in the United States resulting from over-supply of produced oil. Therefore, downward pressure on commodity prices has remained and could continue for the foreseeable future.
Uncertainties related to the impact of the COVID-19 Pandemic and other events exist that could impact our future results of operations and financial position, the nature of which and the extent to which are currently unknown. To the extent these uncertainties have been identified and are believed to have an impact on our current period results of operations or financial position based on the requirements for assessing such financial statement impact under GAAP, we have considered them in the preparation of our unaudited financial statements as of and for the three and six months ended June 30, 2020. The application of accounting policies impacted by such considerations include (but are not necessarily limited to) the following:
The interim evaluation of indefinite-lived intangibles and goodwill for potential impairment, where indicators exist, as defined by GAAP;
The interim evaluation of long-lived assets for potential impairment, where indicators exist, as defined by GAAP;

           
7 |  
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Notes to Condensed Consolidated Financial Statements (Unaudited)

The interim evaluation of joint ventures for potential impairment, where indicators exist, as defined by GAAP;
The evaluation of inventory valuation allowances that may be warranted under the lower of cost or net realizable value analysis, pursuant to GAAP;
The consideration of debt modifications and or covenant requirements, as applicable;
The evaluation of commitments and contingencies, including changes in concentrations, as applicable;
The interim evaluation of the risk of credit losses and the determination of our allowance for credit losses, pursuant to GAAP; and
The interim evaluation of our ability to continue as a going concern.
New Accounting Pronouncements Adopted During 2020
ASU 2018-13, Fair Value Measurement - Changes to the Disclosure Requirements for Fair Value Measurement
In August 2018, the Financial Accounting Standards Board (the "FASB") issued guidance related to disclosure requirements for fair value measurements. The pronouncement eliminates, modifies and adds disclosure requirements for fair value measurements. The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019. We adopted this guidance on January 1, 2020 and the adoption did not have a material impact on our business, financial condition or results of operations.
ASU 2016-13, Financial Instruments - Measurement of Credit Losses on Financial Instruments
In June 2016, the FASB issued guidance requiring the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Organizations will now use forward-looking information to better inform their credit loss estimates. This guidance is effective for interim and annual periods beginning after December 15, 2019. We adopted this guidance on January 1, 2020 using the modified retrospective approach as of the adoption date. The adoption did not have a material impact on the Partnership’s operating results, financial position or disclosures.
ASU 2018-15, Intangible - Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract
In August 2018, the FASB issued guidance related to customers' accounting for implementation costs incurred in a cloud computing arrangement that is considered a service contract. This pronouncement aligns the requirements for capitalizing implementation costs in such arrangements with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019. Entities can choose to adopt the new guidance prospectively or retrospectively. We adopted this guidance on January 1, 2020 and elected the prospective method. The adoption did not have a material impact on our business, financial condition or results of operations.
Accounting Pronouncements Not Yet Adopted
ASU 2019-12, Simplifying the Accounting for Income Taxes
In December 2019, the FASB issued guidance intended to simplify various aspects related to accounting for income taxes, eliminate certain exceptions within ASC 740 and clarify certain aspects of the current guidance to promote consistency among reporting entities. The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 2020, with early adoption permitted. We expect to adopt this guidance on the effective date and are currently evaluating the impact that adopting this new guidance will have on our business, financial condition and results of operations.
ASU 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)—Clarifying the Interactions between Topic 321, Topic 323, and Topic 815
In January 2020, the FASB issued ASU 2020-01 which is intended to clarify interactions between the guidance to account for certain equity securities under Topics 321, 323 and 815, and improve current GAAP by reducing diversity in practice and increasing comparability of accounting. The pronouncement is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2020, and early adoption is permitted. We do not expect that the adoption of this ASU on its effective date will have a material impact on our business, financial condition or results of operations.
ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848)
In March 2020, the FASB issued an amendment which is intended to provide temporary optional expedients and exceptions to GAAP guidance on contracts, hedge accounting and other transactions affected by the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank rates. This guidance is effective for all entities any time beginning on March 12, 2020 through December 31, 2022 and may be applied from the beginning of an interim period that includes the issuance date of the ASU. The Partnership is currently evaluating the impact this guidance may have on its consolidated financial statements and related disclosures.

           
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Notes to Condensed Consolidated Financial Statements (Unaudited)

Note 2 - Acquisitions
Trucking Assets Acquisition
Effective May 1, 2020, the Partnership, through its wholly-owned subsidiary DKL Transportation, LLC, acquired Delek Trucking, LLC consisting of certain leased and owned tractors and trailers and related assets from Delek Holdings. The total consideration is subject to certain post-closing adjustments and was approximately $48.0 million in cash. We financed this acquisition with a combination of cash on hand and borrowings under the DKL Credit Facility (as defined in Note 7 ).
The Trucking Assets are recorded in our pipelines and transportation segment and include approximately 150 trucks and trailers, which are primarily leased or owned, respectively.
In connection with the closing of the transaction, Delek Holdings, the Partnership and various of their respective subsidiaries entered into a Throughput and Deficiency Agreement (the “Trucking Assets T&D Agreement”). Under the Trucking Assets T&D Agreement, the Partnership will gather, coordinate pickup of, transport and deliver petroleum products for Delek Holdings, as well as provide ancillary services as requested. The transaction and related agreements were approved by the Conflicts Committee of the Partnership's general partner, which is comprised solely of independent directors. See Note 3 for more detailed descriptions of these agreements.
The Trucking Assets Acquisition was considered a transaction between entities under common control. Accordingly, the Trucking Assets were recorded at amounts based on Delek Holdings' historical carrying value as of the acquisition date. The carrying value of the Trucking Assets as of the acquisition date was $13.3 million, consisting of $0.5 million of owned assets and $12.8 million of Right of Use asset for leased assets and equivalent operating lease liability. Prior periods have not been recast as these assets do not constitute a business in accordance with Accounting Standard Update 2017-01, Clarifying the Definition of a Business ("ASU 2017-01"). We incurred approximately $0.3 million of acquisition costs related to the Trucking Assets Acquisition.
Big Spring Gathering Assets Acquisition
Effective March 31, 2020, the Partnership, through its wholly-owned subsidiary DKL Permian Gathering, LLC, acquired the Big Spring Gathering Assets from Delek Holdings, located in Howard, Borden and Martin Counties, Texas. The total consideration was subject to certain post-closing adjustments and was comprised of $100.0 million in cash and 5.0 million common units representing limited partnership interest in us. We financed the cash component of this acquisition with borrowings from the DKL Credit Facility.
The Big Spring Gathering Assets are recorded in our pipelines and transportation segment and include:
Crude oil pipelines;
Approximately 200 miles of gathering systems (Bayswater Battery, Guidon, Tiger Battery, SM Energy Vizzini);
Approximately 65 Tank battery connections;
Terminals (total storage of approximately 650,000 bbls); and
Applicable rights-of-way.
In connection with the closing of the transaction, Delek Holdings, the Partnership and various of their respective subsidiaries entered into a Throughput and Deficiency Agreement (the “Big Spring T&D Agreement”). Under the Big Spring T&D Agreement, the Partnership will operate and maintain the Big Spring Gathering Assets connecting Delek Holdings' interests in and to certain crude oil with the Partnership's Big Spring, Texas terminal and provide gathering, transportation and other related services with respect to any and all crude produced from shipper’s and certain other producers’ respective interests for delivery at the Big Spring Terminal. The transaction and related agreements were approved by the Conflicts Committee of the Partnership's general partner, which is comprised solely of independent directors. See Note 3 for more detailed descriptions of these agreements.
The Big Spring Gathering Assets Acquisition was considered a transaction between entities under common control. Accordingly, the Big Spring Gathering Assets were recorded at amounts based on Delek Holdings' historical carrying value as of the acquisition date. The carrying value of the Big Spring Gathering Assets as of the acquisition date was $209.5 million. Pursuant to the common control guidance, the 5.0 million units issued (which had a closing market price of $9.10 per unit on the transaction date) were recorded in equity at $109.5 million, representing the net carrying value of the Big Spring Gathering Assets purchased of $209.5 million less the $100.0 million cash consideration. Prior periods have not been recast as these assets do not constitute a business in accordance with ASU 2017-01. We incurred approximately $0.7 million of acquisition costs related to the Big Spring Gathering Assets Acquisition.

Note 3 - Related Party Transactions
Commercial Agreements
The Partnership has a number of long-term, fee-based commercial agreements with Delek Holdings under which we provide various services, including crude oil gathering and crude oil, intermediate and refined products transportation and storage services, and marketing, terminalling

           
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Notes to Condensed Consolidated Financial Statements (Unaudited)

and offloading services to Delek Holdings. Most of these agreements have an initial term ranging from five to ten years, which may be extended for various renewal terms at the option of Delek Holdings. In November 2017, Delek Holdings opted to renew certain of these agreements for subsequent five-year terms expiring in November 2022. In the case of our marketing agreement with Delek Holdings with respect to the Tyler Refinery, the initial term has been extended through 2026. The current term of certain of our agreements with Delek Holdings were required to be further extended pursuant to the amended and restated DKL Credit Facility (as defined in Note 7), which extensions were effective in the fourth quarter of 2018. The fees under each agreement are payable to us monthly by Delek Holdings or certain third parties to whom Delek Holdings has assigned certain of its rights and are generally subject to increase or decrease on July 1 of each year, by the amount of any change in various inflation-based indices, including the Federal Energy Regulatory Commission ("FERC") oil pipeline index or various iterations of the consumer price index ("CPI") and the producer price index ("PPI"); provided, however, that in no event will the fees be adjusted below the amount initially set forth in the applicable agreement. In most circumstances, if Delek Holdings or the applicable third party assignee fails to meet or exceed the minimum volume or throughput commitment during any calendar quarter, Delek Holdings, and not any third party assignee, will be required to make a quarterly shortfall payment to us equal to the volume of the shortfall multiplied by the applicable fee, subject to certain exceptions as specified in the applicable agreement. Carry-over of any volumes or revenue in excess of such commitment to any subsequent quarter is not permitted.
Under each of these agreements, we are required to maintain the capabilities of our pipelines and terminals, such that Delek Holdings may throughput and/or store, as the case may be, specified volumes of crude oil, intermediate and refined products. To the extent that Delek Holdings is prevented by our failure to maintain such capacities from throughputting or storing such specified volumes for more than 30 days per year, Delek Holdings' minimum throughput commitment will be reduced proportionately and prorated for the portion of the quarter during which the specified throughput capacity was unavailable, and/or the storage fee will be reduced, prorated for the portion of the month during which the specified storage capacity was unavailable. Such reduction would occur even if actual throughput or storage amounts were below the minimum volume commitment levels.
See our Annual Report on Form 10-K for a more complete description of our material commercial agreements and other agreements with Delek Holdings.
Effective May 1, 2020, we entered into the Trucking Assets T&D Agreement with Delek Holdings. Under the Trucking Assets T&D Agreement, we will operate a truck based operation that transports various products throughout Arkansas, Oklahoma and Texas and gather, coordinate the pickup of, transport and deliver such products, as well as provide ancillary services as requested. Pursuant to the Trucking Assets T&D Agreement, Delek Holdings has committed to minimum revenue of $39.0 million per year. The initial term of the Trucking Assets T&D Agreement is 10 years, and thereafter Delek Holdings has the option to extend the Trucking Assets T&D Agreement for two additional two-year terms.
Effective March 31, 2020, we entered into the Big Spring T&D Agreement with Delek Holdings. Under the Big Spring T&D Agreement, we will operate and maintain the Big Spring Gathering Assets connecting Delek Holdings' interests in and to certain crude oil with the Partnership's Big Spring, Texas terminal and provide gathering, transportation and other related services with respect to any and all crude produced from Delek Holdings' and certain other producers’ respective interests for delivery at the Big Spring Terminal. Pursuant to the Big Spring T&D Agreement, Delek Holdings has committed to ship 120,000 bpd on the Big Spring Gathering Assets and 50,000 bpd to a redelivery point in Howard County, Texas (collectively, the Minimum Volume Commitments “MVCs”). Pursuant to the Big Spring T&D Agreement, we also agreed to spend up to $33.8 million over three years to connect additional receipt points and, in connection with such expenditures, the MVCs will increase to provide the Partnership a 12.5% return on the actual costs directly incurred and paid by the Partnership pursuant to the terms set forth in the Big Spring T&D Agreement. The initial term of the Big Spring T&D Agreement is 10 years, and thereafter Delek Holdings has the option to extend the Big Spring T&D Agreement for two additional five-year terms. Following the initial term and any such extensions, the Big Spring T&D Agreement will continue on a year-to-year basis unless terminated by either party upon 90 days’ written notice.
Other Agreements with Delek Holdings
In addition to the commercial agreements described above, the Partnership has entered into the following agreements with Delek Holdings:
Omnibus Agreement
The Partnership entered into an omnibus agreement with Delek Holdings, our general partner, Delek Logistics Operating, LLC, Lion Oil Company and certain of the Partnership's and Delek Holdings' other subsidiaries on November 7, 2012, which has been amended from time to time in connection with acquisitions from Delek Holdings (collectively, as amended, the "Omnibus Agreement"). The Omnibus Agreement governs the provision of certain operational services and reimbursement obligations, among other matters, between the Partnership and Delek Holdings, and obligates us to pay an annual fee of $4.1 million to Delek Holdings for its provision of centralized corporate services to the Partnership.
Pursuant to the terms of the Omnibus Agreement, we were reimbursed by Delek Holdings for certain capital expenditures of a nominal amount and $0.6 million during the three and six months ended June 30, 2020, respectively, and $0.7 million and $1.5 million during the three and six months ended June 30, 2019, respectively. These amounts are recorded in other long-term liabilities and are amortized to revenue over the life of the underlying revenue agreement corresponding to the asset. Additionally, we are reimbursed or indemnified, as the case may

           
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Notes to Condensed Consolidated Financial Statements (Unaudited)

be, for costs incurred in excess of certain amounts related to certain asset failures, pursuant to the terms of the Omnibus Agreement. As of June 30, 2020, we have recorded a nominal receivable from related parties for these matters for which we expect to be reimbursed. These reimbursements are recorded as reductions to operating expense. We were reimbursed a nominal amount and $0.1 million for these matters during the three and six months ended June 30, 2020, respectively, and $2.2 million and $5.7 million during the three and six months ended June 30, 2019, respectively.
Other Transactions
The Partnership manages a long-term capital project on behalf of Delek Holdings pursuant to a construction management and operating agreement (the "DPG Management Agreement") for the construction of a 250-mile gathering system in the Permian Basin. The majority of the gathering system has been constructed, however, additional costs pertaining to a pipeline connection that was not contributed to the Partnership continue to be incurred and are still subject to the terms of the DPG Management Agreement. The Partnership is also considered the operator for the project and is responsible for oversight of the project design, procurement and construction of project segments and provides other related services. Pursuant to the terms of the DPG Management Agreement, the Partnership receives a monthly operating services fee and a construction services fee, which includes the Partnership's direct costs of managing the project plus an additional percentage fee of the construction costs of each project segment. The agreement extends through December 2022. Total fees paid to the Partnership were $0.4 million and $1.2 million for the three and six months ended June 30, 2020, respectively, and $1.0 million and $2.8 million for the three and six months ended June 30, 2019, respectively, which are recorded in affiliate revenue in our condensed consolidated statements of income. Additionally, the Partnership incurs the costs in connection with the construction of the assets and is subsequently reimbursed by Delek Holdings. Amounts reimbursable by Delek Holdings are recorded in accounts receivable from related parties.
Unregistered Sale of Equity Securities
In connection with the Partnership's issuance of the new units ("Additional Units") under the Big Spring Gathering Assets Acquisition and in accordance with the Partnership's First Amended and Restated Agreement of Limited Partnership, as amended (the "Partnership Agreement"), the Partnership issued general partner units to the general partner in an amount necessary to maintain its 2% general partner interest (as defined in the "Partnership Agreement"). The sale and issuance of the Additional Units and such general partner units in connection with the Big Spring Gathering Assets Acquisition is exempt from registration under Section 4(a)(2) of the Securities Act of 1933, as amended.
Additionally, in March 2020, Delek Marketing & Supply, LLC ("Delek Marketing") repurchased 451,822 units from an investor pursuant to a Common Unit Purchase Agreement ("Purchase Agreement") between Delek Marketing and such investor. The purchase price of the units amounted to approximately $5.0 million. As a result of the transaction, Delek Holdings' ownership in our outstanding limited partner units increased to 64.5% from 62.6%. Delek Holdings' ownership in our common limited partner units was further increased to 70.5% as a result of the issuance of 5.0 million Additional Units in connection with the Big Spring Gathering Assets Acquisition described above.
Amendment No. 2 to the First Amended and Restated Agreement of Limited Partnership of Delek Logistics Partners, LP
On March 31, 2020, in connection with the completion of the Big Spring Gathering Assets Acquisition, the Board of the general partner adopted Amendment No. 2 (“Amendment No. 2”) to the Partnership Agreement, effective upon adoption. Amendment No. 2 amends the Partnership Agreement to provide for a waiver of distributions in respect of the Incentive Distribution Rights ("IDRs") for General Partner Additional Units ("GP Additional Units") associated with the 5.0 million Additional Units for at least two years, through at least the distribution for the quarter ending March 31, 2022 (the “IDR Waiver”). The IDR Waiver essentially reduces the distribution made to the holders of the IDRs during this period, as the holders would not receive a share of the distribution made on the GP Additional Units. The IDR Waiver will automatically and permanently expire if, following the payment of a distribution in respect of a quarter ending on or after March 31, 2022, Delek Logistics has generated distributable cash flow in the most recent four consecutive quarters that, in the aggregate, would have resulted in total distribution coverage (on a pro forma basis without giving effect to the IDR Waiver) of at least 110% or 1.1x over such period. The IDR Waiver remains effective if this condition is not met. Following the termination of the IDR Waiver, the holders of the IDRs will receive distributions on all units, including the Additional Units.
In addition, in connection with any sale or exchange of the IDRs to or with the Partnership, the IDRs shall be treated as if such waiver had not and never will expire, regardless of whether such waiver has actually expired. An additional waiver letter was signed that waived all of the distributions for the first quarter of 2020 on the Additional Units with respect to the base distribution and the IDRs.
Pursuant to Amendment Number 2, the IDR majority unitholders have the right, subject to certain conditions following the termination of the IDR Waiver, to make an election (the “IDR Reset Election”) to cause the minimum quarterly distribution and the target distributions to be reset ("the IDR Reset"). In connection with the IDR Reset, the IDR Unitholders will become entitled to receive their respective proportionate share of Common Units (the “IDR Reset Common Units”) derived by dividing (i) the average amount of IDR cash distributions made by the Partnership by (ii) the average of the cash distributions made by the Partnership in respect of each Common Unit, and in each case for the two full Quarters immediately before the Reset Notice.

           
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Notes to Condensed Consolidated Financial Statements (Unaudited)

Summary of Transactions
Revenues from affiliates consist primarily of revenues from gathering, transportation, storage, offloading, Renewable Identification Numbers ("RINs"), wholesale marketing and products terminalling services provided primarily to Delek Holdings based on regulated tariff rates or contractually based fees and product sales. Affiliate operating expenses are primarily comprised of amounts we reimburse Delek Holdings, or our general partner, as the case may be, for the services provided to us under the Partnership Agreement. These expenses could also include reimbursement and indemnification amounts from Delek Holdings, as provided under the Omnibus Agreement. Additionally, the Partnership is required to reimburse Delek Holdings for direct or allocated costs and expenses incurred by Delek Holdings on behalf of the Partnership and for charges Delek Holdings incurred for the management and operation of our logistics assets, including an annual fee for various centralized corporate services, which are included in general and administrative expenses. In addition to these transactions, we purchase refined products and bulk biofuels from Delek Holdings, the costs of which are included in cost of materials and other.
A summary of revenue, purchases from affiliates and expense transactions with Delek Holdings and its affiliates are as follows (in thousands):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
Revenues
$
87,629

 
$
61,918

 
$
194,328

 
$
124,883

Purchases from Affiliates
$
29,730

 
$
73,213

 
$
110,493

 
$
152,647

Operating and maintenance expenses 
$
10,310

 
$
10,590

 
$
23,067

 
$
20,515

General and administrative expenses 
$
2,703

 
$
1,748

 
$
6,072

 
$
3,118


Quarterly Cash Distributions
Our common and general partner unitholders and the holders of IDRs are entitled to receive quarterly distributions of available cash as it is determined by the board of directors of our general partner in accordance with the terms and provisions of our Partnership Agreement. In February and May 2020, we paid quarterly cash distributions of $30.6 million and $30.9 million, respectively, of which $22.6 million and $23.2 million, respectively, were paid to Delek Holdings and our general partner. In February and May 2019, we paid quarterly cash distributions of $26.9 million and $27.4 million, respectively, of which $19.6 million and $20.0 million were paid to Delek Holdings and our general partner. On July 24, 2020, our general partner's board of directors declared a quarterly cash distribution totaling $36.0 million, based on the available cash as of the date of determination for the end of the second quarter of 2020, payable on August 12, 2020, of which $28.2 million is expected to be paid to Delek Holdings and our general partner, including the distribution as holder of the IDRs described in Note 8.

Note 4 - Revenues
We generate revenue by charging fees for gathering, transporting, offloading and storing crude oil; for storing intermediate products and feed stocks; for distributing, transporting and storing refined products; for marketing refined products output of Delek Holdings' Tyler and Big Spring refineries; and for wholesale marketing in the West Texas area. A significant portion of our revenue is derived from long-term commercial agreements with Delek Holdings, which provide for annual fee adjustments for increases or decreases in the CPI, PPI or FERC index (refer to Note 3 for a more detailed description of these agreements). In addition to the services we provide to Delek Holdings, we also generate substantial revenue from crude oil, intermediate and refined products transportation services for, and terminalling and marketing services to, third parties primarily in Texas, New Mexico, Tennessee and Arkansas. Certain of these services are provided pursuant to contractual agreements with third parties. Payment terms require customers to pay shortly after delivery and do not contain significant financing components.
The majority of our commercial agreements with Delek Holdings meet the definition of a lease because: (1) performance of the contracts is dependent on specified property, plant or equipment and (2) it is remote that one or more parties other than Delek Holdings will take more than a minor amount of the output associated with the specified property, plant or equipment. As part of our adoption of Accounting Standards Codification ("ASC") 842, Leases ("ASC 842"), we applied the permitted practical expedient to not separate lease and non-lease components under the predominance principle to designated asset classes associated with the provision of logistics services. We have determined that the predominant component of the related agreements currently in effect is the lease component. Therefore, the combined component is accounted for under the applicable lease accounting guidance. Of our $473.7 million net property, plant, and equipment balance as of June 30, 2020, $358.5 million is subject to operating leases under our commercial agreements. These agreements do not include options for the lessee to purchase our leasing equipment, nor do they include any material residual value guarantees or material restrictive covenants.

           
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The following table represents a disaggregation of revenue for each reportable segment for the periods indicated (in thousands):
 
 
Three Months Ended June 30, 2020
 
 
Pipelines and Transportation
 
Wholesale Marketing and Terminalling
 
Consolidated
Service Revenue - Third Party
 
$
2,032

 
$
204

 
$
2,236

Product Revenue - Third Party
 

 
27,772

 
27,772

Product Revenue - Affiliate
 

 
6,720

 
6,720

Lease Revenue - Affiliate (1)
 
61,394

 
19,515

 
80,909

Total Revenue
 
$
63,426

 
$
54,211

 
$
117,637


(1) Net of $1.8 million of amortization expense for the three months ended June 30, 2020, related to a customer contract intangible asset recorded in the wholesale marketing and terminalling segment.

 
 
Three Months Ended June 30, 2019
 
 
Pipelines and Transportation
 
Wholesale Marketing and Terminalling
 
Consolidated
Service Revenue - Third Party
 
$
7,477

 
$
184

 
$
7,661

Product Revenue - Third Party
 

 
85,763

 
85,763

Product Revenue - Affiliate
 

 
7,187

 
7,187

Lease Revenue - Affiliate (1)
 
36,731

 
18,000

 
54,731

Total Revenue
 
$
44,208

 
$
111,134

 
$
155,342

(1) Net of $1.8 million of amortization expense for the three months ended June 30, 2019, related to a customer contract intangible asset recorded in the wholesale marketing and terminalling segment.


 
 
Six Months Ended June 30, 2020
 
 
Pipelines and Transportation
 
Wholesale Marketing and Terminalling
 
Consolidated
Service Revenue - Third Party
 
$
11,496

 
$
396

 
$