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Derivatives (Tables)
 6 Months Ended
Jun. 30, 2020
Derivative [Line Items]  
Summary of Gross Fair Values of Derivative Instruments, Presenting the Impact of Offsetting Derivative Assets
The following tables summarize the Company’s gross fair values of its derivative instruments, presenting the impact of offsetting derivative assets in the Company’s condensed consolidated balance sheets (in millions):
 
 
June 30, 2020
 
December 31, 2019
 
Balance Sheet Location
Gross Amounts of Recognized Assets
 
Gross Amounts Offset in the Condensed Consolidated Balance Sheets
 
Net Amounts of Assets Presented
in the Condensed Consolidated Balance Sheets
 
Gross Amounts of Recognized Assets
 
Gross Amounts Offset in the Condensed Consolidated Balance Sheets
 
Net Amounts of Assets Presented
in the Condensed Consolidated Balance Sheets
Derivative instruments not designated as hedges:
 
 
 
 
 
 
 
 
 
 
Specialty products segment:
 
 
 
 
 
 
 
 
 
 
 
Natural gas swaps
Derivative assets
$
0.2

 
$
(0.4
)
 
$
(0.2
)
 
$
—

 
$
—

 
$
—

Fuel products segment:
 
 
 
 
 


 
 
 
 
 


Inventory financing obligation
Obligations under inventory financing agreements
$
4.4

 
$
—

 
$
4.4

 
$
—

 
$
—

 
$
—

WCS crude oil basis swaps
Derivative assets
5.2

 
(0.3
)
 
4.9

 
—

 
(1.3
)
 
(1.3
)
Gasoline crack spread swaps
Derivative assets
4.6

 
—

 
4.6

 
1.8

 
(0.5
)
 
1.3

Diesel crack spread swaps
Derivative assets
9.5

 
—

 
9.5

 
0.9

 
(0.5
)
 
0.4

Diesel-MEH crack spread swap
Derivative assets
0.9


—


0.9

 
—

 
—

 
—

2/1/1 crack spread swaps
Derivative assets
—

 
—

 
—

 
0.5

 
—

 
0.5

Total derivative instruments
 
$
24.8


$
(0.7
)

$
24.1


$
3.2


$
(2.3
)

$
0.9
Summary of Gross Fair Values of Derivative Instruments, Presenting the Impact of Offsetting Derivative Liabilities
The following tables summarize the Company’s gross fair values of its derivative instruments, presenting the impact of offsetting derivative liabilities in the Company’s condensed consolidated balance sheets (in millions):
 
 
June 30, 2020
 
December 31, 2019
 
Balance Sheet Location
Gross Amounts of Recognized Liabilities
 
Gross Amounts Offset in the Condensed Consolidated Balance Sheets
 
Net Amounts of Liabilities Presented
in the Condensed Consolidated Balance Sheets
 
Gross Amounts of Recognized Liabilities
 
Gross Amounts Offset in the Condensed Consolidated Balance Sheets
 
Net Amounts of Liabilities Presented
in the Condensed Consolidated Balance Sheets
Derivative instruments not designated as hedges:
 
 
 
 
 
 
 
 
 
 
Specialty products segment:
 
 
 
 
 
 
 
 
 
 
 
Natural gas swaps
Other current liabilities
$
(0.4
)
 
$
0.4

 
$
—

 
$
—

 
$
—

 
$
—

Fuel products segment:
 
 
 
 
 
 
 
 
 
 
 
 
Inventory financing obligation
Obligations under inventory financing agreements
$
—

 
$
—

 
—

 
$
(7.2
)
 
$
—

 
$
(7.2
)
WCS crude oil basis swaps
Other current liabilities

(0.3
)
 
0.3

 
—

 
(1.3
)
 
1.3

 
—

Gasoline crack spread swaps
Other current liabilities

—

 
—

 
—

 
(0.5
)
 
0.5

 
—

Diesel crack spread swaps
Other current liabilities

—

 
—

 
—

 
(0.5
)
 
0.5

 
—

Total derivative instruments
 
$
(0.7
)
 
$
0.7

 
$
—

 
$
(9.5
)
 
$
2.3

 
$
(7.2
)
Commodity Contract | Not Designated as Hedging Instrument [Member]  
Derivative [Line Items]  
Schedule of Derivative Instruments
The Company recorded the following gains (losses) in its unaudited condensed consolidated statements of operations, related to its derivative instruments not designated as hedges (in millions):
Type of Derivative
Amount of Realized Gain Recognized in Gain on Derivative Instruments
 
Amount of Unrealized Loss Recognized in Gain on Derivative Instruments
Three Months Ended June 30,
 
Three Months Ended June 30,
2020
 
2019
 
2020
 
2019
Specialty products segment:
 
 
 
 
 
 
 
Natural gas swaps
$
(0.5
)
 
$
—

 
$
0.1

 
$
—

Midland crude oil basis swaps
—

 
0.5

 
—

 
(0.5
)
Fuel products segment:
 
 
 
 
 
 
 
Inventory financing obligation
—

 
—

 
0.7

 
15.5

WCS crude oil basis swaps
4.6

 
13.5

 
12.3

 
(11.4
)
WCS crude oil percentage basis swaps
—

 
0.8

 
—

 
(0.9
)
Midland crude oil basis swaps
—

 
1.7

 
—

 
(5.0
)
Gasoline crack spread swaps
3.4

 
—

 
(13.5
)
 
—

2/1/1 crack spread swaps
0.2

 
—

 
(0.4
)
 
—

Diesel crack spread swaps
4.8

 
5.4

 
(1.3
)
 
(6.6
)
Diesel percentage basis crack spread swaps
—

 
0.6

 
—

 
(3.3
)
Diesel-MEH crack spread swap

—

 
—

 
0.9

 
—

Total
$
12.5

 
$
22.5

 
$
(1.2
)
 
$
(12.2
)

The Company recorded the following gains (losses) in its unaudited condensed consolidated statements of operations for the six months ended June 30, 2020 and 2019, related to its derivative instruments not designated as hedges (in millions):
Type of Derivative
Amount of Realized Gain Recognized in Gain on Derivative Instruments
 
Amount of Unrealized Gain (Loss) Recognized in Gain on Derivative Instruments
Six Months Ended June 30,
 
Six Months Ended June 30,
2020
 
2019
 
2020
 
2019
Specialty products segment:
 
 
 
 
 
 
 
Natural gas swaps
$
(0.6
)
 
$
—

 
$
(0.2
)
 
$
—

Midland crude oil basis swaps
—

 
1.6

 
—

 
(1.0
)
Fuel products segment:
 
 
 
 
 
 
 
Inventory financing obligation
—

 
—

 
11.7

 
2.8

WCS crude oil basis swaps
4.6

 
17.1

 
6.1

 
(14.9
)
WCS crude oil percentage basis swaps
—

 
0.9

 
—

 
6.3

Midland crude oil basis swaps
—

 
9.0

 
—

 
(7.1
)
Gasoline crack spread swaps
5.5

 
—

 
3.3

 
—

2/1/1 crack spread swaps
2.1

 
—

 
(0.5
)
 
—

Diesel crack spread swaps
7.8

 
6.1

 
9.1

 
(7.4
)
Diesel-MEH crack spread swap

—

 
—

 
0.9

 
—

Diesel percentage basis crack spread swaps
—

 
(0.5
)
 
—

 
6.5

Total
$
19.4

 
$
34.2

 
$
30.4

 
$
(14.8
)
WCS crude oil basis swaps | Fuel Product [Member]  
Derivative [Line Items]  
Schedule of Derivative Positions
At June 30, 2020, the Company had the following derivatives related to WCS crude oil basis purchases in its fuel products segment, none of which are designated as hedges:
WCS Crude Oil Basis Swap Contracts by Expiration Dates
Barrels Purchased
 
BPD
 
Average Differential to NYMEX WTI ($/Bbl)
Third Quarter 2020 (1)
1,610,000

 
17,500

 
$
(13.68
)
Fourth Quarter 2020
1,610,000

 
17,500

 
$
(15.02
)
Total
3,220,000

 
 
 
 
Average differential
 
 
 
 
$
(14.35
)
(1) 
The volumes include 418,500 barrels of WCS crude oil basis purchases that settled at $(13.05)/Bbl average differential to WTI in the quarter ended June 30, 2020.
At December 31, 2019, the Company had the following derivatives related to WCS crude oil basis purchases in its fuel products segment, none of which are designated as hedges:
WCS Crude Oil Basis Swap Contracts by Expiration Dates
Barrels Purchased
 
BPD
 
Average Differential to NYMEX WTI ($/Bbl)
First Quarter 2020
544,000

 
5,978

 
$
(18.92
)
Total
544,000

 
 
 
 
Average differential
 
 
 
 
$
(18.92
)
Diesel crack spread swaps | Fuel Product [Member]  
Derivative [Line Items]  
Schedule of Derivative Positions
At June 30, 2020, the Company had the following derivatives related to diesel crack spread swap sales in its fuel products segment, none of which are designated as hedges:
Diesel Crack Spread Swap Contracts by Expiration Dates
Barrels Sold
 
BPD
 
Average Swap
($/Bbl)
Third Quarter 2020
368,000

 
4,000

 
$
22.23

Fourth Quarter 2020
368,000

 
4,000

 
$
21.91

Total
736,000

 
 
 
 
Average price
 
 
 
 
$
22.07

At December 31, 2019, the Company had the following derivatives related to diesel crack spread swap sales in its fuel products segment, none of which are designated as hedges:
Diesel Crack Spread Swap Contracts by Expiration Dates
Barrels Sold
 
BPD
 
Average Swap
($/Bbl)
First Quarter 2020
500,500

 
5,500

 
$
22.15

Second Quarter 2020
379,000

 
4,165

 
$
21.68

Third Quarter 2020
368,000

 
4,000

 
$
22.23

Fourth Quarter 2020
368,000

 
4,000

 
$
21.91

Total
1,615,500

 
 
 
 
Average price
 
 
 
 
$
22.00
Gasoline Crack Spread Swaps | Fuel Product [Member]  
Derivative [Line Items]  
Schedule of Derivative Positions
At June 30, 2020, the Company had the following derivatives related to gasoline crack spread swap sales in its fuel products segment, none of which are designated as hedges:
Gasoline Crack Spread Swap Contracts by Expiration Dates
Barrels Sold
 
BPD
 
Average Swap
($/Bbl)
Third Quarter 2020
368,000

 
4,000

 
$
15.24

Fourth Quarter 2020
368,000

 
4,000

 
$
9.77

Total
736,000

 
 
 
 
Average price
 
 
 
 
$
12.50

At December 31, 2019, the Company had the following derivatives related to gasoline crack spread swap sales in its fuel products segment, none of which are designated as hedges:
Gasoline Crack Spread Swap Contracts by Expiration Dates
Barrels Sold
 
BPD
 
Average Swap
($/Bbl)
First Quarter 2020
591,500

 
6,500

 
$
12.54

Second Quarter 2020
379,000

 
4,165

 
$
16.41

Third Quarter 2020
368,000

 
4,000

 
$
15.24

Fourth Quarter 2020
368,000

 
4,000

 
$
9.77

Total
1,706,500

 
 
 
 
Average price
 
 
 
 
$
13.38
2-1-1- Crack Spread Swap | Fuel Product [Member]  
Derivative [Line Items]  
Schedule of Derivative Positions
At June 30, 2020, the Company had no derivatives related to 2/1/1 crack spread swap sales in its fuel products segment.
At December 31, 2019, the Company had the following derivatives related to 2/1/1 crack spread swap sales in its fuel products segment, none of which are designated as hedges:
2/1/1 Crack Spread Swap Contracts by Expiration Dates
Barrels Sold
 
BPD
 
Average Swap
($/Bbl)
First Quarter 2020
364,000

 
4,000

 
$
17.43

Second Quarter 2020
30,000

 
330

 
$
19.50

Total
394,000

 
 
 
 
Average price
 
 
 
 
$
17.58
Natural Gas Swaps [Member] | Specialty Product [Member]  
Derivative [Line Items]  
Schedule of Derivative Positions
At June 30, 2020, the Company had the following derivatives related to natural gas swap purchases in its specialty products segment, none of which are designated as hedges:
Natural Gas Swap Contracts by Expiration Dates
MMBtu
 
Average Swap
($/MMBtu)
Third Quarter 2020 (1)
1,518,000

 
$
2.08

Fourth Quarter 2020
1,518,000

 
$
2.25

Total
3,036,000

 
 
Average price
 
 
$
2.16

(1) 
These volumes include 511,500 MMBtu of natural gas swap purchases that settled at $2.05/MMBtu average swap price to NYMEX Henry Hub in the quarter ended June 30, 2020.
At December 31, 2019, the Company had no derivatives related to natural gas swap purchases in its specialty products segment.
Diesel-MEH crack spread swap [Member] [Domain] | Fuel Product [Member]  
Derivative [Line Items]  
Schedule of Derivative Positions
At June 30, 2020, the Company had the following derivatives related to diesel - MEH crack spread swap sales in its fuel products segment, none of which are designated as hedges:
Diesel - MEH Crack Spread Swap Contracts by Expiration Dates
Barrels Sold
 
BPD
 
Average Swap
($/Bbl)
Third Quarter 2020
368,000

 
4,000

 
$
9.51

Fourth Quarter 2020
368,000

 
4,000

 
$
9.51

Total
736,000

 
 
 
 
Average price
 
 
 
 
$
9.51

At December 31, 2019, the Company had no derivatives related to diesel - MEH crack spread swap sales in its fuel products segment.