Segments and Related Information (Tables)

9 Months Ended

Sep. 30, 2024

Segments and Related Information

Summary of reportable segment information

Reportable segment information for the three and nine months ended September 30, 2024 and 2023, is as follows (in millions):

	Specialty
	Products and		Performance		Montana/						Consolidated
Three Months Ended September 30, 2024	Solutions		Brands		Renewables		Corporate		Eliminations		Total
Sales:
External customers	$	714.0	$	80.3	$	306.1	$	—	$	—	$	1,100.4
Inter-segment sales		6.3		0.1		—		—		(6.4)		—
Total sales	$	720.3	$	80.4	$	306.1	$	—	$	(6.4)	$	1,100.4
Adjusted EBITDA	$	42.6	$	13.6	$	12.7	$	(19.1)	$	—	$	49.8
Reconciling items to net loss:
Depreciation and amortization		17.4		2.2		25.5		0.2		—		45.3
LCM / LIFO loss		4.2		0.8		4.4		—		—		9.4
Interest expense		5.6		—		15.7		36.4		—		57.7
Unrealized gain on derivatives		(13.6)		—		—		—		—		(13.6)
RINs mark-to-market loss		22.6		—		10.2		—		—		32.8
Other non-recurring expenses												12.1
Equity-based compensation and other items												7.0
Income tax expense												0.7
Noncontrolling interest adjustments												(1.0)
Net loss											$	(100.6)
Capital expenditures	$	9.4	$	0.2	$	8.9	$	0.9	$	—	$	19.4
PP&E, net	$	355.7	$	32.0	$	1,061.1	$	4.5	$	—	$	1,453.3

	Specialty
	Products and		Performance		Montana/						Consolidated
Three Months Ended September 30, 2023 (As Restated)	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	$	38.6	$	13.2	$	38.2	$	(14.6)	$	—	$	75.4
Reconciling items to net income:
Depreciation and amortization		19.0		2.5		21.9		0.2		—		43.6
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												2.5
Equity-based compensation and other items												13.8
Income tax expense												0.5
Noncontrolling interest adjustments												(2.2)
Net income											$	99.8
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
Nine Months Ended September 30, 2024	Solutions		Brands		Renewables		Corporate		Eliminations		Total
Sales:
External customers	$	2,141.8	$	256.1	$	842.0	$	—	$	—	$	3,239.9
Inter-segment sales		18.3		0.3		—		—		(18.6)		—
Total sales	$	2,160.1	$	256.4	$	842.0	$	—	$	(18.6)	$	3,239.9
Adjusted EBITDA	$	150.2	$	41.1	$	5.8	$	(58.9)	$	—	$	138.2
Reconciling items to net loss:
Depreciation and amortization		53.1		6.5		76.3		0.7		—		136.6
LCM / LIFO loss		1.3		0.8		6.8		—		—		8.9
Interest expense		17.3		0.1		48.7		109.2		—		175.3
Debt extinguishment costs		0.1		—		—		0.2		—		0.3
Unrealized gain on derivatives		(52.3)		—		—		—		—		(52.3)
RINs mark-to-market gain		(16.9)		—		(9.2)		—		—		(26.1)
Other non-recurring expenses												72.1
Equity-based compensation and other items												4.4
Income tax expense												1.4
Noncontrolling interest adjustments												(1.1)
Net loss											$	(181.3)
Capital expenditures	$	41.0	$	0.8	$	25.1	$	2.7	$	—	$	69.6
PP&E, net	$	355.7	$	32.0	$	1,061.1	$	4.5	$	—	$	1,453.3

	Specialty
	Products and		Performance		Montana/						Consolidated
Nine Months Ended September 30, 2023 (As Restated)	Solutions (1)		Brands (2)		Renewables (3)		Corporate		Eliminations		Total
Sales:
External customers	$	2,168.5	$	239.5	$	796.5	$	—	$	—	$	3,204.5
Inter-segment sales		13.1		0.2		—		—		(13.3)		—
Total sales	$	2,181.6	$	239.7	$	796.5	$	—	$	(13.3)	$	3,204.5
Adjusted EBITDA	$	175.6	$	41.8	$	56.0	$	(52.6)	$	—	$	220.8
Reconciling items to net income:
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												21.0
Income tax expense												1.4
Noncontrolling interest adjustments												(0.8)
Net income											$	96.1
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

(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.

Summary of major product category sales

The following table sets forth the major product category sales for each segment for the three months ended September 30, 2024 and 2023 (dollars in millions):

	Three Months Ended September 30,
	2024				2023
					(As Restated)
Specialty Products and Solutions:
Lubricating oils	$	192.5	17.5	%	$	175.8	15.3	%
Solvents		106.1	9.6	%		92.1	8.0	%
Waxes		38.8	3.5	%		40.1	3.5	%
Fuels, asphalt and other by-products		376.6	34.3	%		437.7	38.1	%
Total	$	714.0	64.9	%	$	745.7	64.9	%
Montana/Renewables:
Gasoline	$	40.8	3.7	%	$	47.9	4.2	%
Diesel		31.0	2.8	%		39.9	3.5	%
Jet fuel		5.3	0.5	%		5.9	0.5	%
Asphalt, heavy fuel oils and other		51.3	4.7	%		50.2	4.3	%
Renewable fuels		177.7	16.1	%		184.6	16.1	%
Total	$	306.1	27.8	%	$	328.5	28.6	%
Performance Brands:	$	80.3	7.3	%	$	75.2	6.5	%
Consolidated sales	$	1,100.4	100.0	%	$	1,149.4	100.0	%

	Nine Months Ended September 30,
	2024				2023
					(As Restated)
Specialty Products and Solutions:
Lubricating oils	$	598.1	18.5	%	$	577.2	18.0	%
Solvents		318.0	9.8	%		294.9	9.2	%
Waxes		117.9	3.6	%		124.5	3.9	%
Fuels, asphalt and other by-products		1,107.8	34.2	%		1,171.9	36.6	%
Total	$	2,141.8	66.1	%	$	2,168.5	67.7	%
Montana/Renewables:
Gasoline	$	110.0	3.4	%	$	131.6	4.1	%
Diesel		87.9	2.7	%		108.7	3.4	%
Jet fuel		14.8	0.5	%		16.5	0.5	%
Asphalt, heavy fuel oils and other		118.5	3.7	%		108.3	3.3	%
Renewable fuels		510.8	15.7	%		431.4	13.5	%
Total	$	842.0	26.0	%	$	796.5	24.8	%
Performance Brands:	$	256.1	7.9	%	$	239.5	7.5	%
Consolidated sales	$	3,239.9	100.0	%	$	3,204.5	100.0	%