Revenue from Contracts with Customers

12 Months Ended

Dec. 31, 2024

Revenue from Contracts with Customers

Revenue from Contracts with Customers

Note 5. Revenue from Contracts with Customers

Disaggregation of Revenue

The following table provides the disaggregation of revenue from contracts with customers and other sales by segment for the periods presented (in thousands):

	Year Ended December 31, 2024
Revenue from contracts with customers:	Wholesale		GDSO		Commercial		Total
Petroleum and related product sales	$	2,671,984	$	4,807,765	$	725,395	$	8,205,144
Station operations		—		481,982		—		481,982
Total revenue from contracts with customers		2,671,984		5,289,747		725,395		8,687,126
Other sales:
Revenue originating as physical forward sale contracts and exchange agreements		8,042,841		—		346,662		8,389,503
Revenue from leases		3,080		83,857		—		86,937
Total other sales		8,045,921		83,857		346,662		8,476,440
Total sales	$	10,717,905	$	5,373,604	$	1,072,057	$	17,163,566

	Year Ended December 31, 2023
Revenue from contracts with customers:	Wholesale		GDSO		Commercial		Total
Petroleum and related product sales	$	3,303,951	$	5,268,268	$	689,201	$	9,261,420
Station operations		—		490,942		—		490,942
Total revenue from contracts with customers		3,303,951		5,759,210		689,201		9,752,362
Other sales:
Revenue originating as physical forward sale contracts and exchange agreements		6,307,155		—		349,123		6,656,278
Revenue from leases		2,210		81,324		—		83,534
Total other sales		6,309,365		81,324		349,123		6,739,812
Total sales	$	9,613,316	$	5,840,534	$	1,038,324	$	16,492,174

	Year Ended December 31, 2022
Revenue from contracts with customers:	Wholesale		GDSO		Commercial		Total
Petroleum and related product sales	$	3,671,725	$	6,140,823	$	853,243	$	10,665,791
Station operations		—		480,455		—		480,455
Total revenue from contracts with customers		3,671,725		6,621,278		853,243		11,146,246
Other sales:
Revenue originating as physical forward sale contracts and exchange agreements		7,189,213		—		460,501		7,649,714
Revenue from leases		2,555		79,371		—		81,926
Total other sales		7,191,768		79,371		460,501		7,731,640
Total sales	$	10,863,493	$	6,700,649	$	1,313,744	$	18,877,886

Nature of Goods and Services

Revenue from Contracts with Customers (ASC 606):

● Refined petroleum products and renewable fuels—Under the Partnership’s Wholesale, GDSO and Commercial segments, revenue is recognized at the point where control of the product is transferred over the period that throughput and logistics services are provided to the customer and collectability is reasonably assured.

● Station operations—Revenue from convenience store sales of grocery and other merchandise and sundries (such as car wash sales and lottery and ATM commissions) is recognized at the time of the sale to the customer.

Other Revenue:

● Revenue Originating as Physical Forward Contracts and Exchanges—The Partnership’s commodity contracts and derivative instrument activity include physical forward commodity sale contracts. The Partnership does not take the normal purchase and sale exemption available under ASC 815 for any of its physical forward contracts. This income is recognized under ASC 815 and is included in sales at the contract value upon settlement at the point where control of the product is transferred to the customer. Income from net exchange differentials included in sales is recognized under ASC 845, “Nonmonetary Transactions,” upon delivery of product to exchange partners.

● Revenue from Leases—The Partnership has rental income from gasoline stations and cobranding arrangements and lease income from space leased to several unrelated third parties at several of the Partnership’s terminals.

Transaction Price Allocated to Remaining Performance Obligations

The Partnership has elected certain of the optional exemptions from the disclosure requirement for remaining performance obligations for specific situations in which an entity need not estimate variable consideration to recognize revenue. Accordingly, the Partnership applies the practical expedient in paragraph ASC 606-10-50-14 to its contracts with customers where revenue is tied to a market-index and does not disclose information about variable consideration from remaining performance obligations for which the Partnership recognizes revenue.

The fixed component of estimated revenues expected to be recognized in the future related to performance obligations tied to a market index that are unsatisfied (or partially unsatisfied) at the end of the reporting period are not significant.

Contract Balances

A receivable, which is included in accounts receivable, net in the accompanying consolidated balance sheets, is recognized in the period the Partnership provides services when its right to consideration is unconditional. In contrast, a contract asset will be recognized when the Partnership has fulfilled a contract obligation but must perform other obligations before being entitled to payment. The Partnership had no significant contract assets at both December 31, 2024 and 2023.

The nature of the receivables related to revenue from contracts with customers and other revenue, as well as contract assets, are the same, given they are related to the same customers and have the same risk profile and securitization. Payment terms on invoiced amounts are typically 2 to 30 days.

A contract liability is recognized when the Partnership has an obligation to transfer goods or services to a customer for which the Partnership has received consideration (or the amount is due) from the customer. The Partnership had no significant contract liabilities at both December 31, 2024 and 2023.