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Derivative Financial Instruments (Tables)
12 Months Ended
Dec. 31, 2024
Derivative Financial Instruments  
Schedule of notional values of derivative instruments

Units (1)

    

Unit of Measure

 

Exchange-Traded Derivatives

Long

42,771

 

Thousands of barrels

Short

(45,798)

 

Thousands of barrels

OTC Derivatives (Petroleum/Ethanol)

Long

140,896

 

Thousands of barrels

Short

(7,348)

 

Thousands of barrels

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

The following table presents the gains and losses from the Partnership’s derivative instruments involved in fair value hedging relationships recognized in the consolidated statements of operations for the years ended December 31 (in thousands):

Location of Gain (Loss)

 

Recognized in Income on

 

Derivatives

2024

2023

2022

 

Derivatives in fair value hedging relationship

    

    

    

    

    

    

    

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

 

Cost of sales

$

12,790

$

7,158

$

(32,088)

Hedged items in fair value hedge relationship

Physical inventory

 

Cost of sales

$

(16,985)

$

(15,320)

$

24,737

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

The following table presents the gains and losses from the Partnership’s derivative instruments not involved in a hedging relationship recognized in the consolidated statements of operations for the years ended December 31 (in thousands):

Location of Gain (Loss)

Derivatives not designated as

Recognized in

hedging instruments

    

Income on Derivatives

2024

    

2023

    

2022

 

Commodity contracts

 

Cost of sales

$

(13,740)

$

1,803

$

29,002

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

The following table presents the fair value of each classification of the Partnership’s derivative instruments and its location in the consolidated balance sheets at December 31, 2024 and 2023 (in thousands):

December 31, 2024

 

Derivatives

Derivatives Not

 

Designated as

Designated as

 

Hedging

Hedging

 

Balance Sheet Location

Instruments

Instruments

Total

 

Asset Derivatives:

    

    

    

    

    

    

    

    

Exchange-traded derivative contracts

 

Broker margin deposits

$

(9,355)

$

38,483

$

29,128

Forward derivative contracts (1)

 

Derivative assets

13,710

13,710

Total asset derivatives

$

(9,355)

$

52,193

$

42,838

Liability Derivatives:

                                                                  

Exchange-traded derivative contracts

 

Broker margin deposits

$

$

(30,936)

$

(30,936)

Forward derivative contracts (1)

Derivative liabilities

(6,105)

(6,105)

Total liability derivatives

$

$

(37,041)

$

(37,041)

December 31, 2023

 

Derivatives

Derivatives Not

 

Designated as

Designated as

 

Hedging

Hedging

 

Balance Sheet Location

Instruments

Instruments

Total

 

Asset Derivatives:

    

    

    

    

    

    

    

    

Exchange-traded derivative contracts

 

Broker margin deposits

$

$

67,430

$

67,430

Forward derivative contracts (1)

 

Derivative assets

17,656

17,656

Total asset derivatives

$

$

85,086

$

85,086

Liability Derivatives:

                                                                  

Exchange-traded derivative contracts

Broker margin deposits

$

10,678

$

(44,687)

$

(34,009)

Forward derivative contracts (1)

 

Derivative liabilities

(4,987)

(4,987)

Total liability derivatives

$

10,678

$

(49,674)

$

(38,996)

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