Quarterly report pursuant to Section 13 or 15(d)

Leased Properties and Leases (Tables)

v3.19.2
Leased Properties and Leases (Tables)
6 Months Ended
Jun. 30, 2019
Leases [Abstract]  
Significant leased properties, major tenants and lease terms
The following table summarizes the significant leased properties, major tenants and lease terms:
Summary of Leased Properties, Major Tenants and Lease Terms
Property
Grand Isle Gathering System
Pinedale LGS
Location
Gulf of Mexico/Louisiana
Pinedale, WY
Tenant
Energy XXI GIGS Services, LLC
Ultra Wyoming LGS, LLC
Asset Description
Approximately 153 miles of offshore pipeline with total capacity of 120 thousand Bbls/d, including a 16-acre onshore terminal and saltwater disposal system.
Approximately 150 miles of pipelines and four central storage facilities.
Date Acquired
June 2015
December 2012
Initial Lease Term
11 years
15 years
Renewal Option
Equal to the lesser of 9-years or 75 percent of the remaining useful life
5-year terms
Current Monthly Rent Payments
7/1/2018 - 6/30/2019: $2,860,917
7/1/2019 - 6/30/2020: $3,223,917
$1,812,307
Initial Estimated Useful Life
27 years
26 years
Schedule of future minimum lease receipts
The future contracted minimum rental receipts for all leases as of June 30, 2019, are as follows:
Future Minimum Lease Receipts
Years Ending December 31,
Amount
2019
$
30,267,595

2020
65,383,190

2021
71,345,190

2022
70,322,690

2023
67,274,690

Thereafter
193,639,760

Total
$
498,233,115

Schedule of Significant Leases
The table below displays the Company's individually significant leases as a percentage of total leased properties and total lease revenues for the periods presented:
 
As a Percentage of (1)
 
Leased Properties
 
Lease Revenues
 
As of
 
For the Three Months Ended
 
For the Six Months Ended
 
June 30, 2019
 
December 31, 2018
 
June 30, 2019
 
June 30, 2018
 
June 30, 2019
 
June 30, 2018
Pinedale LGS(2)
44.4
%
 
44.5
%
 
38.8
%
 
35.3
%
 
38.9
%
 
34.1
%
Grand Isle Gathering System
55.3
%
 
55.2
%
 
61.1
%
 
55.6
%
 
61.0
%
 
56.7
%
Portland Terminal Facility(3)
%
 
%
 
%
 
9.0
%
 
%
 
9.1
%
(1) Insignificant leases are not presented; thus, percentages may not sum to 100%.
 
 
 
 
(2) Pinedale LGS lease revenues include variable rent of $1.0 million and $2.1 million for the three and six months ended June 30, 2019, respectively, compared to $1.1 million and $1.5 million for the three and six months ended June 30, 2018, respectively.
(3) On December 21, 2018, the Portland Terminal Facility was sold to Zenith Terminals, terminating the Portland Lease Agreement.
Schedule of Depreciation, Amortization and Accretion
The following table reflects the depreciation and amortization included in the accompanying Consolidated Statements of Income associated with the Company's leases and leased properties:
 
For the Three Months Ended
 
For the Six Months Ended
 
June 30, 2019
 
June 30, 2018
 
June 30, 2019
 
June 30, 2018
Depreciation Expense
 
 
 
 
 
 
 
GIGS
$
2,440,790

 
$
2,751,272

 
$
4,881,581

 
$
5,502,544

Pinedale
2,217,360

 
2,217,360

 
4,434,720

 
4,434,720

Portland Terminal Facility(1)

 
318,915

 

 
637,830

United Property Systems
9,831

 
9,120

 
19,455

 
18,242

Total Depreciation Expense
$
4,667,981

 
$
5,296,667

 
$
9,335,756

 
$
10,593,336

Amortization Expense - Deferred Lease Costs
 
 
 
 
 
 
 
GIGS
$
7,641

 
$
7,641

 
$
15,282

 
$
15,282

Pinedale
15,342

 
15,342

 
30,684

 
30,684

Total Amortization Expense - Deferred Lease Costs
$
22,983

 
$
22,983

 
$
45,966

 
$
45,966

ARO Accretion Expense
 
 
 
 
 
 
 
GIGS
$
110,993

 
$
127,928

 
$
221,985

 
$
255,856

Total ARO Accretion Expense
$
110,993

 
$
127,928

 
$
221,985

 
$
255,856

(1) On December 21, 2018, the Portland Terminal Facility was sold to Zenith Terminals, terminating the Portland Lease Agreement.
Schedule of Deferred Lease Costs
The following table reflects the deferred costs that are included in the accompanying Consolidated Balance Sheets associated with the Company's leased properties:
 
June 30, 2019
 
December 31, 2018
Net Deferred Lease Costs
 
 
 
GIGS
$
214,037

 
$
229,319

Pinedale
519,665

 
550,349

Total Deferred Lease Costs, net
$
733,702

 
$
779,668