Note 4 - Revenue and Segment Information

6 Months Ended

Jun. 30, 2025

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’ includes costs and expenses for BDSC, BDPL, and BDPC.

Our chief operating decision maker ("CODM") is our Chief Executive Officer. For our refining segment, significant expenses relate to crude oil, fuel use, and chemicals, and other conversion costs. For our tolling and terminaling segment, significant expenses relate to fees associated with an intercompany tolling agreement. The CODM reviews segment profit or loss on a monthly and quarterly basis and considers trend analyses as well as other market factors when making decisions about resource allocation. The measure of segment assets reported on our consolidated balance sheets and reviewed by our CODM is total assets.

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 ( 8)” 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.

	June 30,		December 31,
	2025		2024
	(in thousands)

Accounts receivable (including related-party), beginning January 1st, of period	$	5,960	$	4,300
Accounts receivable (including related-party), end of period		9,011		5,960

Unearned revenue, beginning January 1st, of period	$	2,727	$	3,243
Unearned revenue, end of period		1,549		2,727

Segment Information.

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

	Three Months Ended
	June 30,
	2025														2024
	Refinery Operations			Tolling & Terminaling		Corporate & Other			Intercompany Elimination ⁽¹⁾			Consolidated			Refinery Operations			Tolling & Terminaling		Corporate & Other			Intercompany Elimination			Consolidated
	(in thousands)

Segment revenue	$	55,795		$	1,361	$	-		$	(573	)	$	56,583		$	68,548		$	1,684	$	-		$	(573	)	$	69,659

Crude oil, fuel use, and chemicals		50,669			-		-			-			50,669			64,820			-		-			-			64,820
Other conversion costs		5,154			-		-			(573	)		4,581			9,058			-		-			(573	)		8,485
Tolling and terminaling costs		-			140		-			-			140			-			410		-			-			410
Depreciation and amortization		301			342		-			-			643			301			342		-			-			643
Total costs of goods sold		56,124			482		-			(573	)		56,033			74,179			752		-			(573	)		74,358

LEH operating fee, related party		276			-		-			-			276			254			-		-			-			254
General and administrative expenses		580			72		52			-			704			391			69		1,011			-			1,471
Other operating expenses(2)		-			-		125			-			125			-			-		140			-			140
Depreciation and amortization		-			-		74			-			74			-			-		62			-			62
Interest, net		928			444		180			-			1,552			806			497		137			-			1,440
Total costs and expenses		57,908			998		431			(573	)		58,764			75,630			1,318		1,350			(573	)		77,725

Income (loss) before income taxes		(2,113	)		363		(431	)		-			(2,181	)		(7,082	)		366		(1,350	)		-			(8,066	)

Income tax benefit		-			-		459			-			459			-			-		1,716			-			1,716

Net income (loss)	$	(2,113	)	$	363	$	28		$	-		$	(1,722	)	$	(7,082	)	$	366	$	366		$	-		$	(6,350	)

⁽¹⁾

Fees associated with an intercompany tolling agreement related to naphtha volumes.

⁽²⁾

Includes costs and expenses associated with our pipeline and facilities assets.

	Six Months Ended
	June 30,
	2025													2024
	Refinery Operations		Tolling & Terminaling		Corporate & Other			Intercompany Elimination ⁽¹⁾			Consolidated			Refinery Operations		Tolling & Terminaling		Corporate & Other			Intercompany Elimination			Consolidated
	(in thousands)

Segment revenue	$	138,663	$	2,752	$	-		$	(1,140	)	$	140,275		$	158,463	$	3,294	$	-		$	(1,076	)	$	160,681

Crude oil, fuel use, and chemicals		125,245		-		-			-			125,245			141,489		-		-			-			141,489
Other conversion costs		8,002		-		-			(1,140	)		6,862			11,674		-		-			(1,076	)		10,598
Tolling and terminaling costs		-		262		-			-			262			-		820		-			-			820
Depreciation and amortization		599		684		-			-			1,283			602		684		-			-			1,286
Total costs of goods sold		133,846		946		-			(1,140	)		133,652			153,765		1,504		-			(1,076	)		154,193

LEH operating fee, related party		458		-		-			-			458			426		-		-			-			426
General and administrative expenses		919		160		980			-			2,059			628		92		1,734			-			2,454
Other operating expenses⁽²⁾		-		-		244			-			244			-		-		280			-			280
Depreciation and amortization		-		-		148			-			148			-		-		123			-			123
Interest, net		1,764		921		331			-			3,016			1,540		993		273			-			2,806
Total costs and expenses		136,987		2,027		1,703			(1,140	)		139,577			156,359		2,589		2,410			(1,076	)		160,282

Income (loss) before income taxes		1,676		725		(1,703	)		-			698			2,104		705		(2,410	)		-			399

Income tax expense		-		-		(176	)		-			(176	)		-		-		(125	)		-			(125	)

Net income (loss)	$	1,676	$	725	$	(1,879	)	$	-		$	522		$	2,104	$	705	$	(2,535	)	$	-		$	274

⁽¹⁾

Fees associated with an intercompany tolling agreement related to naphtha volumes.

⁽²⁾

Includes costs and expenses associated with our pipeline and facilities assets.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2025		2024		2025		2024
	(in thousands)				(in thousands)
Capital expenditures
Refinery operations⁽¹⁾	$	29	$	-	$	168	$	-
Total capital expenditures	$	29	$	-	$	168	$	-

⁽¹⁾

$0.1 million of the capital expenditures were vendor financed.

	June 30,		December 31,
	2025		2024
	(in thousands)
Identifiable assets
Refinery operations	$	89,067	$	78,996
Tolling and terminaling		16,388		16,904
Corporate and other		5,363		5,996
Total identifiable assets	$	110,818	$	101,896