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Inventories

3 Months Ended

Mar. 31, 2025

5. Inventories

The cost of inventory is recorded using the last-in, first-out (“LIFO”) method. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and costs and are subject to the final year-end LIFO inventory valuation. In certain circumstances, the Company may decide not to replenish inventory for certain products or product lines during an interim period, in which case, the Company may record interim LIFO adjustments during that period. During the three months ended March 31, 2025 and 2024, the Company recorded no

activity (exclusive of lower of cost or market (“LCM”) adjustments) in cost of sales in the unaudited condensed consolidated statements of operations due to the permanent liquidation of inventory layers.

Costs include crude oil and other feedstocks, labor, processing costs, and refining overhead costs. Inventories are valued at the LCM value. The replacement cost of these inventories, based on current market values, would have been $45.9 million and $49.2 million higher than the carrying value of inventory as of March 31, 2025 and December 31, 2024, respectively.

For the three months ended March 31, 2025 and 2024, the Company sold inventory comprised of crude oil, refined products, and renewable feedstocks under Supply and Offtake Agreements as described in Note 8 — “Inventory Financing Agreements” related to the Shreveport and Montana Renewables facilities.

Inventories consist of the following (in millions):


	March 31, 2025						December 31, 2024
			Supply and						Supply and
	Titled		Offtake				Titled		Offtake
	Inventory		Agreements ⁽¹⁾		Total		Inventory		Agreements ⁽¹⁾		Total
Raw materials	$	61.8	$	18.7	$	80.5	$	45.3	$	29.7	$	75.0
Work in process		72.4		27.1		99.5		63.8		33.7		97.5
Finished goods		165.2		44.2		209.4		160.3		83.5		243.8
	$	299.4	$	90.0	$	389.4	$	269.4	$	146.9	$	416.3

(1)	Amounts represent LIFO value and do not necessarily represent the value at which the inventory was sold. Please read Note 8 — “Inventory Financing Agreements” for further information.

In addition, the use of the LIFO inventory method may result in increases or decreases to cost of sales in years that inventory volumes decline as the result of charging cost of sales with LIFO inventory costs generated in prior periods. In periods of rapidly declining prices, LIFO inventories may have to be written down to market value due to the higher costs assigned to LIFO layers in prior periods. During the three months ended March 31, 2025, the Company recorded a decrease in cost of sales in the unaudited condensed consolidated statements of operations for LCM of $0.1 million. During the three months ended March 31, 2024, the Company recorded an increase in cost of sales in the unaudited condensed consolidated statements of operations for LCM of $9.0 million.