AltAir Acquisition

On March 1, 2016, we acquired control of Altair Paramount, LLC (“AltAir”) which initially provides for us to receive approximately 77% of earnings and distributions of the entity. We increased our original 32% ownership and obtained control of AltAir after certain operational milestones were achieved. We contributed to AltAir total cash in the amount of $27,058.

AltAir is a renewable fuels project which began operations in February 2016. The project converts approximately 2,500 barrels per day of tallow and other feedstocks into renewable biofuels, which are replacements for petroleum-based fuel. AltAir generates environmental credits in the form of renewable identification numbers, low-carbon fuels standards credits and blender’s fuel tax credits.

Acquisitions achieved in stages require that in the period the acquiring company achieves control, that it recognize 100% of the fair value of the net assets at that time. Additionally, the existing equity interests of the company and of non-controlling interest are required to be recorded at fair value. The fair value of AltAir was estimated by applying the market approach. Based on our analysis at March 1, 2016, there was no gain recorded for the revaluation of our previous equity interests. The fair value of the assets and liabilities recorded into our consolidated financial statements are as follows:



Current assets	$	11,897
Other assets	7,704
Property, plant and equipment	49,612
Current liabilities	(5,408		)
Fair value of net assets assumed	63,805
Non-controlling interest	(38,851		)
	$	24,954

Beginning March 1, 2016, we have consolidated AltAir as part of our refining and marketing segment in our consolidated financial statements. Our consolidated statements of operations include AltAir revenues of $22,770 and $50,673 and operating income (loss) of $(249) and $6,920 for the three and six months ended June 30, 2016, respectively.