Segments and Related Information (Tables)

9 Months Ended

Sep. 30, 2023

Segments and Related Information

Summary of reportable segment information

	Specialty
	Products and		Performance		Montana/						Consolidated
Three Months Ended September 30, 2023	Solutions (1)		Brands (2)		Renewables		Corporate		Eliminations		Total
Sales:
External customers	$	745.7	$	75.2	$	328.5	$	—	$	—	$	1,149.4
Inter-segment sales		2.5		0.1		—		—		(2.6)		—
Total sales	$	748.2	$	75.3	$	328.5	$	—	$	(2.6)	$	1,149.4
Adjusted EBITDA	$	38.7	$	13.2	$	38.2	$	(14.6)	$	—	$	75.5
Reconciling items to net income attributable to partners:
Depreciation and amortization		19.0		2.5		21.9		0.3		—		43.7
LCM / LIFO (gain) loss		(4.4)		0.1		(0.2)		—		—		(4.5)
Interest expense		7.1		—		18.4		33.2		—		58.7
Debt extinguishment costs		—		—		—		0.3		—		0.3
Unrealized loss on derivatives		26.2		—		10.1		—		—		36.3
RINs mark-to-market gain		(118.3)		—		(55.1)		—		—		(173.4)
Other non-recurring expenses												2.4
Equity-based compensation and other items												13.8
Income tax expense												0.5
Noncontrolling interest adjustments												(5.3)
Net income attributable to partners											$	103.0
Capital expenditures	$	25.4	$	0.4	$	22.1	$	0.1	$	—	$	48.0
PP&E, net	$	375.7	$	33.2	$	1,116.0	$	2.0	$	—	$	1,526.9

	Specialty
	Products and		Performance		Montana/						Consolidated
Three Months Ended September 30, 2022	Solutions		Brands		Renewables		Corporate		Eliminations		Total
Sales:
External customers	$	934.6	$	76.4	$	154.0	$	—	$	—	$	1,165.0
Inter-segment sales		7.1		—		—		—		(7.1)		—
Total sales	$	941.7	$	76.4	$	154.0	$	—	$	(7.1)	$	1,165.0
Adjusted EBITDA	$	131.7	$	8.5	$	11.3	$	(24.5)	$	—	$	127.0
Reconciling items to net income attributable to partners:
Depreciation and amortization		15.6		2.9		9.9		1.8		—		30.2
LCM / LIFO (gain) loss		2.1		(0.3)		(2.3)		—		—		(0.5)
Gain on impairment and disposal of assets		—		—		(0.2)		—		—		(0.2)
Interest expense		7.2		—		6.7		27.9		—		41.8
Debt extinguishment costs		—		—		38.3		2.1		—		40.4
Unrealized (gain) loss on derivatives		(29.3)		—		1.2		—		—		(28.1)
RINs mark-to-market loss		9.2		—		5.1		—		—		14.3
Other non-recurring income												(0.2)
Equity-based compensation and other items												13.0
Income tax expense												1.5
Noncontrolling interest adjustments												(0.9)
Net income attributable to partners											$	15.7
Capital expenditures	$	15.0	$	0.7	$	196.3	$	0.2	$	—	$	212.2
PP&E, net	$	374.6	$	34.0	$	917.7	$	3.1	$	—	$	1,329.4

	Specialty
	Products and		Performance		Montana/						Consolidated
Nine Months Ended September 30, 2023	Solutions (1)		Brands (2)		Renewables (3)		Corporate		Eliminations		Total
Sales:
External customers	$	2,168.5	$	239.5	$	796.1	$	—	$	—	$	3,204.1
Inter-segment sales		13.1		0.2		—		—		(13.3)		—
Total sales	$	2,181.6	$	239.7	$	796.1	$	—	$	(13.3)	$	3,204.1
Adjusted EBITDA	$	176.1	$	41.8	$	55.6	$	(52.6)	$	—	$	220.9
Reconciling items to net income attributable to partners:
Depreciation and amortization		54.2		7.4		61.3		0.8		—		123.7
LCM / LIFO (gain) loss		(1.7)		2.2		8.9		—		—		9.4
Interest expense		20.4		0.1		48.3		94.9		—		163.7
Debt extinguishment costs		—		—		—		5.5		—		5.5
Unrealized (gain) loss on derivatives		(22.6)		—		3.8		—		—		(18.8)
RINs mark-to-market gain		(146.9)		—		(69.0)		—		—		(215.9)
Other non-recurring expenses												35.5
Equity-based compensation and other items												22.5
Income tax expense												1.4
Noncontrolling interest adjustments												(19.3)
Net income attributable to partners											$	113.2
Capital expenditures	$	65.4	$	1.4	$	202.0	$	0.4	$	—	$	269.2
PP&E, net	$	375.7	$	33.2	$	1,116.0	$	2.0	$	—	$	1,526.9

	Specialty
	Products and		Performance		Montana/						Consolidated
Nine Months Ended September 30, 2022	Solutions (4) (5)		Brands		Renewables		Corporate		Eliminations		Total
Sales:
External customers	$	2,683.2	$	229.7	$	774.0	$	—	$	—	$	3,686.9
Inter-segment sales		19.7		—		—		—		(19.7)		—
Total sales	$	2,702.9	$	229.7	$	774.0	$	—	$	(19.7)	$	3,686.9
Adjusted EBITDA	$	283.3	$	17.5	$	88.9	$	(63.6)	$	—	$	326.1
Reconciling items to net loss attributable to partners:
Depreciation and amortization		47.6		8.5		28.9		5.7		—		90.7
LCM / LIFO gain		(1.3)		(0.5)		(5.9)		—		—		(7.7)
Gain on impairment and disposal of assets		—		—		(0.2)		—		—		(0.2)
Interest expense		24.0		1.1		25.5		85.4		—		136.0
Debt extinguishment costs		—		—		38.3		3.1		—		41.4
Unrealized loss on derivatives		41.8		—		5.7		—		—		47.5
RINs mark-to-market loss		60.0		—		32.4		—		—		92.4
Other non-recurring expenses												2.6
Equity-based compensation and other items												16.6
Income tax expense												2.8
Noncontrolling interest adjustments												(0.9)
Net loss attributable to partners											$	(95.1)
Capital expenditures	$	45.3	$	1.6	$	361.3	$	0.3	$	—	$	408.5
PP&E, net	$	374.6	$	34.0	$	917.7	$	3.1	$	—	$	1,329.4

(1) For the three and nine months ended September 30, 2023, Adjusted EBITDA for the Specialty Products and Solutions segment included a $7.1 million and $9.5 million gain, respectively, recorded in cost of sales in the unaudited condensed consolidated statements of operations for proceeds received under the Company’s property damage insurance policy.

(2) For the three and nine months ended September 30, 2023, Adjusted EBITDA for the Performance Brands segment included a $3.2 million and $8.2 million gain recorded in cost of sales in the unaudited condensed consolidated statements of operations for proceeds received under the Company’s business interruption insurance policy.

(3) For the nine months ended September 30, 2023, Adjusted EBITDA for the Montana/Renewables segment excluded a $28.4 million charge to cost of sales in the unaudited condensed consolidated statements of operations for losses under firm purchase commitments.

(4) For the nine months ended September 30, 2022, Adjusted EBITDA for the Specialty Products and Solutions segment included a $13.9 million gain recorded to cost of sales in the unaudited condensed consolidated statements of operations for proceeds received under the Company’s business interruption insurance policy. The Company incurred business losses due to increased costs arising from a polar vortex that occurred in 2021 in northwest Louisiana. As a result, the Company filed a contingent business interruption claim. Specifically, the losses included a loss of throughput at the Shreveport refinery and additional transportation related expenses.

(5) For the nine months ended September 30, 2022, Adjusted EBITDA for the Specialty Products and Solutions segment included a $4.4 million gain recorded in cost of sales in the unaudited condensed consolidated statements of operations for proceeds received under the Company’s property damage insurance policy as a result of damages caused by a polar vortex that occurred in 2021.

Summary of major product category sales

	Three Months Ended September 30,
	2023				2022
Specialty Products and Solutions:
Lubricating oils	$	175.8	15.3	%	$	250.4	21.5	%
Solvents		92.1	8.0	%		119.2	10.2	%
Waxes		40.1	3.5	%		50.0	4.3	%
Fuels, asphalt and other by-products		437.7	38.1	%		515.0	44.1	%
Total	$	745.7	64.9	%	$	934.6	80.1	%
Montana/Renewables:
Gasoline	$	47.9	4.2	%	$	35.2	3.0	%
Diesel		39.9	3.5	%		68.4	5.9	%
Jet fuel		5.9	0.5	%		10.1	0.9	%
Asphalt, heavy fuel oils and other		50.2	4.3	%		40.3	3.5	%
Renewable fuels		184.6	16.1	%		—	—	%
Total	$	328.5	28.6	%	$	154.0	13.3	%
Performance Brands:	$	75.2	6.5	%	$	76.4	6.6	%
Consolidated sales	$	1,149.4	100.0	%	$	1,165.0	100.0	%

	Nine Months Ended September 30,
	2023				2022
Specialty Products and Solutions:
Lubricating oils	$	577.2	18.0	%	$	705.2	19.1	%
Solvents		294.9	9.2	%		331.8	9.0	%
Waxes		124.5	3.9	%		144.3	3.9	%
Fuels, asphalt and other by-products		1,171.9	36.6	%		1,501.9	40.8	%
Total	$	2,168.5	67.7	%	$	2,683.2	72.8	%
Montana/Renewables:
Gasoline	$	131.6	4.1	%	$	161.6	4.4	%
Diesel		108.7	3.4	%		365.7	9.9	%
Jet fuel		16.5	0.5	%		36.3	1.0	%
Asphalt, heavy fuel oils and other		107.9	3.3	%		210.4	5.7	%
Renewable fuels		431.4	13.5	%		—	—	%
Total	$	796.1	24.8	%	$	774.0	21.0	%
Performance Brands:	$	239.5	7.5	%	$	229.7	6.2	%
Consolidated sales	$	3,204.1	100.0	%	$	3,686.9	100.0	%