Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Fair Value of Derivatives Instruments Statements

The following table presents the fair value of our derivative instruments as of March 31, 2022 and December 31, 2021. The fair value amounts below are presented on a gross basis and do not reflect the netting of asset and liability positions permitted under our master netting arrangements, including cash collateral on deposit with our counterparties. We have elected to offset the recognized fair value amounts for multiple derivative instruments executed with the same counterparty in our financial statements. As a result, the asset and liability amounts below differ from the amounts presented in our condensed consolidated balance sheets. See Note 10 for further information regarding the fair value of derivative instruments (in millions).

		March 31, 2022				December 31, 2021
Derivative Type	Balance Sheet Location	Assets		Liabilities		Assets		Liabilities
Derivatives not designated as hedging instruments:
Commodity derivatives(1)	Other current assets	$	188.9	$	(237.4)	$	21.5	$	—
Commodity derivatives(1)	Other current liabilities	238.4		(261.9)		101.5		(102.3)
Commodity derivatives(1)	Other long-term liabilities	2.2		(3.6)		6.1		(6.1)
RIN commitment contracts(2)	Other current assets	2.7		—		1.6		—
RIN commitment contracts(2)	Other current liabilities	—		(7.0)		—		(0.7)
Total gross fair value of derivatives		$	432.2	$	(509.9)	$	130.7	$	(109.1)
Less: Counterparty netting and cash collateral(3)		335.2		(478.1)		107.1		(82.4)
Total net fair value of derivatives		$	97.0	$	(31.8)	$	23.6	$	(26.7)

(1)As of March 31, 2022 and December 31, 2021, we had open derivative positions representing 200,455,511 and 182,525,893 barrels, respectively, of crude oil and refined petroleum products. There were no open positions designated as cash flow hedging instruments as of March 31, 2022 and December 31, 2021. Additionally, as of December 31, 2021, we had open derivative positions representing and 1,320,000 MMBTU of natural gas products.

(2)As of March 31, 2022 and December 31, 2021, we had open RINs commitment contracts representing 108,950,000 and 16,325,000 RINs, respectively.

(3)As of March 31, 2022 and December 31, 2021, $142.8 million and $(24.7) million, respectively, of cash collateral (obligation) held by counterparties has been netted with the derivatives with each counterparty.

Total gains (losses) on our non-trading commodity derivatives and RINs commitment contracts recorded in the condensed consolidated statements of income are as follows (in millions):

	Three Months Ended March 31,
	2022		2021
(Losses) gains on hedging derivatives not designated as hedging instruments recognized in cost of materials and other (1)	$	(71.4)	$	57.2
Losses on non-trading physical forward contract commodity derivatives in cost of materials and other	(3.4)		(1.1)
Realized gains reclassified out of accumulated other comprehensive income and into cost of materials and other on commodity derivatives designated as cash flow hedging instruments	—		0.2
Total (losses) gains	$	(74.8)	$	56.3

(1)     Gains (losses) on commodity derivatives that are economic hedges but not designated as hedging instruments include unrealized gains (losses) of $(70.7) million and $11.2 million for the three months ended March 31, 2022 and 2021.

(2)    See separate table below for disclosures about "trading derivatives."

The effect of cash flow hedge accounting on the condensed consolidated statements of income is as follows (in millions):

	Three Months Ended March 31,
	2022		2021
Gain (loss) on cash flow hedging relationships recognized in cost of materials and other:
Commodity contracts:
Hedged items	$	—	$	(0.2)
Derivative designated as hedging instruments	—		0.2
Total	$	—	$	—

Total (losses) gains on our trading derivatives (none of which were designated as hedging instruments) recorded in other operating income, net on the condensed consolidated statements of income are as follows (in millions):

	Three Months Ended March 31,
	2022		2021
Trading Physical Forward Contract Commodity Derivatives
Realized gains (losses)	$	18.0	$	(0.4)
Unrealized losses	(0.4)		(0.4)
Total	$	17.6	$	(0.8)
Trading Hedging Commodity Derivatives
Realized gains (losses)	$	15.0	$	(0.4)
Unrealized losses	(17.2)		(0.6)
Total	$	(2.2)	$	(1.0)