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FAIR VALUE MEASUREMENTS
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
The tables below present information about the Company’s financial assets and liabilities measured and recorded at fair value on a recurring basis and indicate the fair value hierarchy of the inputs utilized to determine the fair values as of December 31, 2024 and 2023.
The Company has elected to offset the fair value amounts recognized for multiple derivative contracts executed with the same counterparty; however, fair value amounts by hierarchy level are presented on a gross basis in the tables below. The Company may be required to post margin collateral or reclaim cash collateral from derivative counterparties based on contractual terms. At December 31, 2024 and December 31, 2023, the Company had the obligation to return cash collateral posted against its derivative obligations of $15.1 million and $23.7 million, respectively. Cash collateral related to derivative contracts is recorded net in the Consolidated Balance Sheets. The Company has no derivative contracts that are subject to master netting arrangements that are reflected gross on the Consolidated Balance Sheets.
As of December 31, 2024
Fair Value Hierarchy
(in millions)Level 1Level 2Level 3Total Gross Fair ValueEffect of Counter-party NettingNet Carrying Value on Balance Sheet
Assets:
Money market funds$12.9 $— $— $12.9 N/A$12.9 
Commodity contracts16.0 — — 16.0 (14.0)2.0 
Liabilities:
Commodity contracts14.0 — — 14.0 (14.0)— 
Renewable energy credit and emissions obligations— 465.9 — 465.9 — 465.9 
As of December 31, 2023
Fair Value Hierarchy
(in millions)Level 1Level 2Level 3Total Gross Fair ValueEffect of Counter-party NettingNet Carrying Value on Balance Sheet
Assets:
Money market funds$130.3 $— $— $130.3 N/A$130.3 
Commodity contracts80.1 — — 80.1 (46.9)33.2 
Liabilities:
Commodity contracts46.9 — — 46.9 (46.9)— 
Renewable energy credit and emissions obligations— 429.8 — 429.8 — 429.8 
Contingent consideration obligation— — 21.6 21.6 — 21.6 
The valuation methods used to measure financial instruments at fair value are as follows:
•Money market funds categorized in Level 1 of the fair value hierarchy are measured at fair value based on quoted market prices and included within Cash and cash equivalents.
•The commodity contracts categorized in Level 1 of the fair value hierarchy are measured at fair value based on quoted prices in an active market. The commodity contracts categorized in Level 2 of the fair value hierarchy are measured at fair value using a market approach based upon future commodity prices for similar instruments quoted in active markets.
•Renewable energy credit and emissions obligations primarily represent the Company’s liability for the purchase of (i) biofuel credits (primarily RINs in the U.S.) needed to satisfy its obligation to blend biofuels into the products the Company produces and (ii) emission credits under the AB 32 and similar programs (collectively, the cap-and-trade systems). To the degree the Company is unable to blend biofuels (such as ethanol and biodiesel) at percentages required under the biofuel programs, it must purchase biofuel credits to comply with these programs. Under the cap-and-trade systems, it must purchase emission credits to comply with these systems. The liability for environmental credits is in part based on the Company’s deficit for such credits as of the balance sheet date, if any, after considering any credits acquired, and is equal to the product of the credits deficit and the market price of these credits as of the balance sheet date. To the extent that the Company has a better estimate of the cost at which it settles its obligation, such as agreements to purchase RINs at prices other than the current spot price, the Company considers those costs in valuing the remaining obligation. The environmental credit obligations are categorized in Level 2 of the fair value hierarchy and are measured at fair value using a market approach based on quoted prices from an independent pricing service.
•When applicable, commodity contracts categorized in Level 3 of the fair value hierarchy consist of commodity price swap contracts that relate to forecasted purchases of crude oil for which quoted forward market prices are not readily available due to market illiquidity. The forward prices used to value these swaps are derived using broker quotes, prices from other third party sources and other available market based data.
•The contingent consideration obligation at December 31, 2023 is categorized in Level 3 of the fair value hierarchy and was estimated using discounted cash flow models based on management’s estimate of the future cash flows related to the earn-out periods. The Company’s final earn-out payment of $18.8 million was paid in full during the second quarter of 2024.
Non-qualified pension plan assets are measured at fair value using a market approach based on published net asset values of mutual funds as a practical expedient. As of December 31, 2024 and 2023, $19.4 million and $18.8 million, respectively, were included within Deferred charges and other assets, net for these non-qualified pension plan assets.
The table below summarizes the changes in fair value measurements categorized in Level 3 of the fair value hierarchy, which primarily includes the prior year change in estimated future earnings related to the Martinez Contingent Consideration:
Year Ended December 31,
(in millions)20242023
Balance at beginning of period $21.6 $150.5 
Settlements(18.8)(88.3)
Unrealized gain included in earnings(2.8)(40.6)
Balance at end of period $— $21.6 
There were no transfers between levels during the years ended December 31, 2024 or December 31, 2023.
Fair value of debt
The table below summarizes the carrying value and fair value of debt as of December 31, 2024 and 2023.
December 31, 2024December 31, 2023
(in millions)Carrying
value		Fair
 value		Carrying
 value		Fair
value
2028 Senior Notes (a)
$801.6 $765.9 $801.6 $779.3 
2030 Senior Notes (a)
500.0 490.0 500.0 514.8 
Revolving Credit Facility (b)
200.0 200.0 — — 
1,501.6 1,455.9 1,301.6 1,294.1 
Less - Unamortized deferred financing costs(41.6)n/a(52.5)n/a
Unamortized discount(2.7)n/a(3.2)n/a
Long-term debt$1,457.3 $1,455.9 $1,245.9 $1,294.1 
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(a) The estimated fair value, categorized as a Level 2 measurement, was calculated based on the present value of future expected payments utilizing implied current market interest rates based on quoted prices of the outstanding senior notes.
(b) The estimated fair value approximates carrying value, categorized as a Level 2 measurement, as these borrowings bear interest based upon short-term floating market interest rates.