Revenue Recognition

9 Months Ended

Sep. 30, 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				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Crude oil marketing:
Revenue from contracts with customers:
Goods transferred at a point in time	$	659,422	$	710,010	$	1,937,229	$	1,878,735
Services transferred over time	—		427		31		763
Total revenues from contracts with customers	659,422		710,437		1,937,260		1,879,498
Other (1)	1,420		9,488		30,231		34,175
Total crude oil marketing revenue	$	660,842	$	719,925	$	1,967,491	$	1,913,673
Transportation:
Revenue from contracts with customers:
Goods transferred at a point in time	$	—	$	—	$	—	$	—
Services transferred over time	21,758		24,206		67,745		75,103
Total revenues from contracts with customers	21,758		24,206		67,745		75,103
Other	—		—		—		—
Total transportation revenue	$	21,758	$	24,206	$	67,745	$	75,103
Pipeline and storage: (2)
Revenue from contracts with customers:
Goods transferred at a point in time	$	—	$	—	$	—	$	—
Services transferred over time	43		59		67		308
Total revenues from contracts with customers	43		59		67		308
Other	—		—		—		—
Total pipeline and storage revenue	$	43	$	59	$	67	$	308
Logistics and repurposing:
Revenue from contracts with customers:
Goods transferred at a point in time	$	6,556	$	8,545	$	19,739	$	25,708
Services transferred over time	5,964		7,879		19,664		20,750
Total revenues from contracts with customers	12,520		16,424		39,403		46,458
Other	—		—		—		—
Total logistics and repurposing revenue	$	12,520	$	16,424	$	39,403	$	46,458
Subtotal:
Total revenues from contracts with customers	$	693,743	$	751,126	$	2,044,475	$	2,001,367
Total other (1)	1,420		9,488		30,231		34,175
Total consolidated revenues	$	695,163	$	760,614	$	2,074,706	$	2,035,542

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(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)The substantial majority of pipeline and storage revenue earned during the three and nine months ended September 30, 2024 and 2023, was from an affiliated shipper, GulfMark Energy, Inc. (“GulfMark”), our subsidiary, and eliminated in consolidation. See Note 7.

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				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Revenue gross-up	$	96,236	$	257,965	$	218,394	$	785,636