Product Sales Revenues

3 Months Ended

Mar. 31, 2016

Product Sales Revenue

The amounts reported as product sales revenue on our consolidated statements of income include revenue from the physical sale of petroleum products and from mark-to-market adjustments from New York Mercantile Exchange (“NYMEX”) contracts. See Note 8 – Derivative Financial Instruments for a discussion of our commodity hedging strategies and how our NYMEX contracts impact product sales revenue. All of the petroleum products inventory we physically sell associated with our butane blending and fractionation activities, as well as the barrels from product gains we obtain from our operations, are reported as product sales revenue on our consolidated statements of income.

For the three months ended March 31, 2015 and 2016, product sales revenue included the following (in thousands):



	Three Months Ended
	March 31,
	2015		2016
Physical sale of petroleum products	$	169,247	$	130,580
Change in value of NYMEX contracts	3,880		15,982
Total product sales revenue	$	173,127	$	146,562