Property and Equipment

6 Months Ended

Jun. 30, 2024

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and Equipment

The historical costs of our property and equipment and related accumulated depreciation and amortization balances were as follows at the dates indicated (in thousands):

	Estimated
	Useful Life	June 30,		December 31,
	in Years	2024		2023
Tractors and trailers	5 – 6	$	117,721	$	119,265
Field equipment	2 – 5	25,094		25,024
Finance lease ROU assets (1)	3 – 6	35,039		35,724
Pipeline and related facilities	20 – 25	20,522		20,397
Linefill and base gas (2)	N/A	3,960		3,922
Buildings	5 – 39	17,066		17,089
Office equipment	2 – 5	3,000		3,000
Land	N/A	4,163		4,163
Construction in progress	N/A	4,508		3,385
Total		231,073		231,969
Less accumulated depreciation and amortization		(130,647)		(126,904)
Property and equipment, net		$	100,426	$	105,065

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(1)Our finance lease right-of-use (“ROU)” assets arise from leasing arrangements for the right to use various classes of underlying assets including tractors, trailers and a tank storage and throughput arrangement (see Note 13 for further information). Accumulated amortization of the assets presented as “Finance lease ROU assets” was $13.9 million and $11.0 million at June 30, 2024 and December 31, 2023, respectively.

(2)Linefill and base gas represents crude oil in the VEX pipeline and storage tanks we own, and the crude oil is recorded at historical cost.

Components of depreciation and amortization expense were as follows for the periods indicated (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Depreciation and amortization, excluding amounts under finance leases	$	3,967	$	4,913	$	8,026	$	9,737
Amortization of property and equipment under finance leases	1,794		1,933		3,668		3,708
Amortization of intangible assets	419		457		841		908
Total depreciation and amortization	$	6,180	$	7,303	$	12,535	$	14,353