DERIVATIVE FINANCIAL INSTRUMENTS

6 Months Ended

Jun. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS

11. DERIVATIVE FINANCIAL INSTRUMENTS

Commodity Derivatives

Depending on market conditions, we source crude oil from producers in Canada, arranging logistics to Jefferson Terminal and marketing crude oil to third parties. We exited this strategy in the fourth quarter of 2019. These crude oil forward purchase and sales contracts are not designated in hedging relationships.

The following table presents a summary of the changes in fair value for all Level 3 derivatives:

	Three Months Ended June 30, 2020		Three Months Ended June 30, 2019				Six Months Ended June 30, 2020		Six Months Ended June 30, 2019
	Crude Oil Forwards		Electricity Swaps (1)		Crude Oil Forwards		Crude Oil Forwards		Electricity Swaps (1)		Crude Oil Forwards
Beginning Balance	$	—	$	(45,382)	$	5,695	$	181	$	—	$	6,545
Net unrealized gains (losses) recognized in earnings	—		4,887		(1,417)		(181)		2,517		(2,267)
Gains recognized in other comprehensive income	—		83,256		—		—		40,244		—
Purchases	—		—		310		—				314
Sales	—		—		113		—				(854)
Settlements	—		—		(424)		—		—		539
Ending Balance	$	—	$	42,761	$	4,277	$	—	$	42,761	$	4,277

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⁽¹⁾ These derivatives were deconsolidated in December 2019 due to the Long Ridge Transaction. See Note 7 for additional details.

There were no transfers into or out of Level 3 during the periods presented.