Revenue Recognition

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

Revenue Disaggregation

The following table disaggregates our revenue by segment and by major source for the periods indicated (in thousands):

	Three Months Ended
	March 31,
	2024		2023
Crude oil marketing:
Revenue from contracts with customers:
Goods transferred at a point in time	$	611,942	$	588,089
Services transferred over time	25		44
Total revenues from contracts with customers	611,967		588,133
Other (1)	11,857		20,343
Total crude oil marketing revenue	$	623,824	$	608,476
Transportation:
Revenue from contracts with customers:
Goods transferred at a point in time	$	—	$	—
Services transferred over time	23,231		26,445
Total revenues from contracts with customers	23,231		26,445
Other	—		—
Total transportation revenue	$	23,231	$	26,445
Pipeline and storage: (2)
Revenue from contracts with customers:
Goods transferred at a point in time	$	—	$	—
Services transferred over time	4		—
Total revenues from contracts with customers	4		—
Other	—		—
Total pipeline and storage revenue	$	4	$	—
Logistics and repurposing:
Revenue from contracts with customers:
Goods transferred at a point in time	$	6,557	$	8,154
Services transferred over time	7,434		7,087
Total revenues from contracts with customers	13,991		15,241
Other	—		—
Total logistics and repurposing revenue	$	13,991	$	15,241
Subtotal:
Total revenues from contracts with customers	$	649,193	$	629,819
Total other (1)	11,857		20,343
Total consolidated revenues	$	661,050	$	650,162

________________________

(1)Other crude oil marketing revenues are recognized under Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging, and ASC 845, Nonmonetary Transactions – Purchases and Sales of Inventory with the Same Counterparty.

(2)All pipeline and storage revenue earned during the three months ended March 31, 2023, and substantially all pipeline and storage revenue earned during the three months ended March 31, 2024, was from an affiliated shipper, GulfMark Energy, Inc. (“GulfMark”), our subsidiary, and eliminated in consolidation.

Other Crude Oil Marketing Revenue

Certain of the commodity purchase and sale contracts utilized by our crude oil marketing business qualify as derivative instruments with certain specifically identified contracts also designated as trading activity. From the time of contract origination, these contracts are marked-to-market and recorded on a net revenue basis in the accompanying unaudited condensed consolidated financial statements.

Certain of our crude oil contracts may be with a single counterparty to provide for similar quantities of crude oil to be bought and sold at different locations. These contracts are entered into for a variety of reasons, including effecting the transportation of the commodity, to minimize credit exposure, and/or to meet the competitive demands of the customer. These buy/sell arrangements are reflected on a net revenue basis in the accompanying unaudited condensed consolidated financial statements.

Reporting these crude oil contracts on a gross revenue basis would increase our reported revenues as follows for the periods indicated (in thousands):

	Three Months Ended
	March 31,
	2024		2023
Revenue gross-up	$	60,170	$	286,702