v3.26.1
Leases
6 Months Ended
Jun. 30, 2026
Leases [Abstract]  
Leases Leases
Lessee
In March 2026, we entered into an arrangement with a third party to construct, own, and subsequently lease to us certain sour gas gathering equipment near our Libby gas processing plant. The construction is expected to be completed in the second half of 2026, at which time we have committed to enter into a finance lease for the equipment. During construction, we are not deemed to control the assets and are not obligated to fund construction costs; therefore, we have not recognized the assets or related obligations on our balance sheet as of June 30, 2026. The total estimated project cost is approximately $60.0 million. Upon lease commencement, we will recognize a right-of-use asset and lease liability in accordance with ASC 842, Leases ("ASC 842").
Lessor
We are the lessor under certain agreements for gathering, transportation, storage, terminalling, and offloading with Delek Holdings. Revenue from these leases is recorded in affiliate revenue in the accompanying condensed consolidated statements of income and comprehensive income.
We recognized any billings in excess of minimum volume requirements as variable lease payments, and these variable lease payments were recorded in lease revenues.
Lease income included in the accompanying condensed consolidated statements of income and comprehensive income were as follows:
Three Months Ended June 30,
Six Months Ended June 30,
(in thousands)
2026
2025
2026
2025
Operating leases:
Lease revenue
$
68,875 
$
50,717 
$
126,074 
$
99,316 
Sales-type leases:
Interest income (Sales-type rental revenue-fixed minimum)
$
22,504 
$
23,533 
54,766 
46,080 
Lease revenue (Revenue from variable lease payments)
4,536 
4,317 
8,427 
7,357 
Sales-type lease income
$
27,040 
$
27,850 
$
63,193 
$
53,437 
Leases Leases
Lessee
In March 2026, we entered into an arrangement with a third party to construct, own, and subsequently lease to us certain sour gas gathering equipment near our Libby gas processing plant. The construction is expected to be completed in the second half of 2026, at which time we have committed to enter into a finance lease for the equipment. During construction, we are not deemed to control the assets and are not obligated to fund construction costs; therefore, we have not recognized the assets or related obligations on our balance sheet as of June 30, 2026. The total estimated project cost is approximately $60.0 million. Upon lease commencement, we will recognize a right-of-use asset and lease liability in accordance with ASC 842, Leases ("ASC 842").
Lessor
We are the lessor under certain agreements for gathering, transportation, storage, terminalling, and offloading with Delek Holdings. Revenue from these leases is recorded in affiliate revenue in the accompanying condensed consolidated statements of income and comprehensive income.
We recognized any billings in excess of minimum volume requirements as variable lease payments, and these variable lease payments were recorded in lease revenues.
Lease income included in the accompanying condensed consolidated statements of income and comprehensive income were as follows:
Three Months Ended June 30,
Six Months Ended June 30,
(in thousands)
2026
2025
2026
2025
Operating leases:
Lease revenue
$
68,875 
$
50,717 
$
126,074 
$
99,316 
Sales-type leases:
Interest income (Sales-type rental revenue-fixed minimum)
$
22,504 
$
23,533 
54,766 
46,080 
Lease revenue (Revenue from variable lease payments)
4,536 
4,317 
8,427 
7,357 
Sales-type lease income
$
27,040 
$
27,850 
$
63,193 
$
53,437 
Leases Leases
Lessee
In March 2026, we entered into an arrangement with a third party to construct, own, and subsequently lease to us certain sour gas gathering equipment near our Libby gas processing plant. The construction is expected to be completed in the second half of 2026, at which time we have committed to enter into a finance lease for the equipment. During construction, we are not deemed to control the assets and are not obligated to fund construction costs; therefore, we have not recognized the assets or related obligations on our balance sheet as of June 30, 2026. The total estimated project cost is approximately $60.0 million. Upon lease commencement, we will recognize a right-of-use asset and lease liability in accordance with ASC 842, Leases ("ASC 842").
Lessor
We are the lessor under certain agreements for gathering, transportation, storage, terminalling, and offloading with Delek Holdings. Revenue from these leases is recorded in affiliate revenue in the accompanying condensed consolidated statements of income and comprehensive income.
We recognized any billings in excess of minimum volume requirements as variable lease payments, and these variable lease payments were recorded in lease revenues.
Lease income included in the accompanying condensed consolidated statements of income and comprehensive income were as follows:
Three Months Ended June 30,
Six Months Ended June 30,
(in thousands)
2026
2025
2026
2025
Operating leases:
Lease revenue
$
68,875 
$
50,717 
$
126,074 
$
99,316 
Sales-type leases:
Interest income (Sales-type rental revenue-fixed minimum)
$
22,504 
$
23,533 
54,766 
46,080 
Lease revenue (Revenue from variable lease payments)
4,536 
4,317 
8,427 
7,357 
Sales-type lease income
$
27,040 
$
27,850 
$
63,193 
$
53,437