Note 4 - Revenue and Segment Information

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Revenues and Segment Reporting Disclosure [Text Block]

(4) Revenue and Segment Information

We have two reportable business segments: (i) refinery operations, which derives revenue from refined product sales, and (ii) tolling and terminaling, which derives revenue from storage tank rental fees, ancillary services fees (such as for in-tank blending) and tolling and reservation fees for use of the naphtha stabilizer at the Nixon refinery. ‘Corporate and other’ as presented in the segment information includes BDSC, BDPL, and BDPC.

Revenue from Contracts with Customers

Disaggregation of Revenue.  We present revenue in the table below under ‘Segment Information’ separated by business segment because management believes this presentation is beneficial to users of our financial information.

Receivables from Contracts with Customers.  We present accounts receivable from contracts with customers as accounts receivable, net on our consolidated balance sheets.

Contract Liabilities.  Our contract liabilities consist of unearned revenue from customers in the form of prepayments.  We include unearned revenue in accrued expenses and other current liabilities on our consolidated balance sheets.  See “Note (9)” to our consolidated financial statements for more information related to unearned revenue.

Remaining Performance Obligations.  Most of our customer contracts are settled immediately and therefore have no remaining performance obligations.

Contract Balances

	March 31,		December 31,
	2024		2023
Accounts receivable (including related-party), beginning of period	$	4,300	$	1,148
Accounts receivable (including related-party), end of period		11,826		4,300
Unearned revenue, beginning of period	$	3,243	$	3,888
Unearned revenue, end of period		2,805		3,243

Segment Information

Business segment information for the periods indicated (and as of the dates indicated) was as follows:

	Three Months Ended
	March 31,
	2024			2023
	(in thousands)
Refinery operations	$	89,915		$	114,640
Tolling and terminaling		1,107			2,021
Total revenue from operations		91,022			116,661
Intercompany processing fees(1)
Refinery operations		(503	)		(576	)
Tolling and terminaling		503			576
Total intercompany processing fees		-			-
Costs of good sold(2)
Refinery operations		(78,782	)		(95,799	)
Tolling and terminaling		(410	)		(358	)
Total costs of goods sold		(79,192	)		(96,157	)
Gross profit
Refinery operations		10,630			18,265
Tolling and terminaling		1,200			2,239
Total gross profit		11,830			20,504
Other operating and general and administrative expenses(3)
Refinery operations		(409	)		(478	)
Tolling and terminaling		(23	)		(470	)
Corporate and other		(863	)		(530	)
Total other operating and general and administrative expenses		(1,295	)		(1,478	)
Depreciation and amortization
Refinery operations		(301	)		(304	)
Tolling and terminaling		(342	)		(342	)
Corporate and other		(61	)		(52	)
Total depreciation and amortization		(704	)		(698	)
Interest and other non-operating expenses, net
Refinery operations		(734	)		(677	)
Tolling and terminaling		(496	)		(470	)
Corporate and other		(136	)		(183	)
Total interest and other non-operating expenses, net		(1,366	)		(1,330	)
Income before income taxes
Refinery operations		9,186			16,806
Tolling and terminaling		339			957
Corporate and other		(1,060	)		(764	)
Total income before income taxes		8,465			16,999
Income tax expense		(1,841	)		(246	)
Net income	$	6,624		$	16,753

(1)	Fees associated with an intercompany tolling agreement related to naphtha volumes.
(2)	Cost of goods sold within tolling and terminaling includes terminal operating expenses and an allocation of other costs (e.g., insurance and maintenance).
(3)	General and administrative expenses within refinery operations includes the LEH operating fee, related party, other operating expenses, and accretion of asset retirement obligations.

	Three Months Ended
	March 31,
	2024		2023
	(in thousands)
Capital expenditures
Refinery operations	$	-	$	-
Tolling and terminaling		-		-
Corporate and other		-		-
Total capital expenditures	$	-	$	-

	March 31,		December 31,
	2024		2023
	(in thousands)
Identifiable assets
Refinery operations	$	88,959	$	86,565
Tolling and terminaling		17,948		16,464
Corporate and other		1,577		3,048
Total identifiable assets	$	108,484	$	106,077