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Derivative Financial Instruments (Tables)
9 Months Ended
Sep. 30, 2022
Derivative Financial Instruments  
Schedule of notional values of derivative instruments

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Units (1)

    

Unit of Measure

 

Exchange-Traded Derivatives

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​

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Long

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67,667

 

Thousands of barrels

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Short

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(70,208)

 

Thousands of barrels

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​

​

​

​

​

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OTC Derivatives (Petroleum/Ethanol)

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​

​

​

​

Long

​

5,980

 

Thousands of barrels

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Short

​

(6,355)

 

Thousands of barrels

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(1)Number of open positions and gross notional values do not measure the Partnership’s risk of loss, quantify risk or represent assets or liabilities of the Partnership, but rather indicate the relative size of the derivative instruments and are used in the calculation of the amounts to be exchanged between counterparties upon settlements.

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Schedule of net gains and losses from derivatives recognized in consolidated statements of operations

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Statement of Gain (Loss)

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Three Months Ended

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Nine Months Ended

 

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Recognized in Income on

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September 30,

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September 30,

 

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Derivatives

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2022

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2021

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2022

​

2021

 

Derivatives in fair value hedging relationship

    

    

    

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Exchange-traded futures contracts and OTC derivative contracts for petroleum commodity products

 

Cost of sales

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$

11,859

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$

(25,270)

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$

8,514

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$

(54,933)

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Hedged items in fair value hedge relationship

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​

​

​

​

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​

​

​

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Physical inventory

 

Cost of sales

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$

(5,532)

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$

28,695

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$

19,544

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$

53,073

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Schedule of the amount of gains and losses from derivatives not involved in a fair value hedging relationship or in a hedging relationship recognized in the consolidated statements of income

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Statement of Gain (Loss)

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Three Months Ended

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Nine Months Ended

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Derivatives not designated as

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Recognized in

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September 30,

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September 30,

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hedging instruments

    

Income on Derivatives

    

2022

    

2021

    

2022

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2021

 

Commodity contracts

 

Cost of sales

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$

8,195

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$

1,977

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$

17,269

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$

3,110

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Schedule of fair values of derivative instruments and location in consolidated balance sheets

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September 30, 2022

 

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Derivatives

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Derivatives Not

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​

​

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Designated as

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Designated as

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Hedging

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Hedging

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Balance Sheet Location

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Instruments

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Instruments

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Total

 

Asset Derivatives:

    

    

    

​

    

    

​

    

    

​

    

​

Exchange-traded derivative contracts

 

Broker margin deposits

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$

4,149

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$

115,081

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$

119,230

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Forward derivative contracts (1)

 

Derivative assets

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​

—

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​

21,758

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​

21,758

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Total asset derivatives

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​

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$

4,149

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$

136,839

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$

140,988

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​

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Liability Derivatives:

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​

​

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​

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​

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​

​

Exchange-traded derivative contracts

 

Broker margin deposits

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$

—

​

$

(66,501)

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$

(66,501)

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Forward derivative contracts (1)

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Derivative liabilities

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​

—

​

​

(24,425)

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​

(24,425)

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Total liability derivatives

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​

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$

—

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$

(90,926)

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$

(90,926)

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​

​

​

​

​

​

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​

​

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​

​

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December 31, 2021

 

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Derivatives

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Derivatives Not

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Designated as

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Designated as

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Hedging

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Hedging

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​

​

 

​

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Balance Sheet Location

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Instruments

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Instruments

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Total

 

Asset Derivatives:

    

    

    

​

    

    

​

    

    

​

    

​

Exchange-traded derivative contracts

 

Broker margin deposits

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$

1,476

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$

106,629

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$

108,105

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Forward derivative contracts (1)

 

Derivative assets

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​

—

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​

11,652

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​

11,652

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Total asset derivatives

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​

​

$

1,476

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$

118,281

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$

119,757

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​

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Liability Derivatives:

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​

​

​

​

​

​

​

​

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Exchange-traded derivative contracts

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Broker margin deposits

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$

(9,201)

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$

(72,993)

​

$

(82,194)

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Forward derivative contracts (1)

 

Derivative liabilities

​

​

—

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​

(31,654)

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​

(31,654)

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Total liability derivatives

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​

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$

(9,201)

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$

(104,647)

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$

(113,848)

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(1)Forward derivative contracts include the Partnership’s petroleum and ethanol physical and financial forwards and OTC swaps.