Note 4 - Revenue and Segment Information

9 Months Ended

Sep. 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.

	September 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		9,214		5,960

Unearned revenue, beginning January 1st, of period	$	2,727	$	3,243
Unearned revenue, end of period		634		2,727

Segment Information.

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

	Three Months Ended
	September 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	$	69,590		$	1,537				$	(772	)	$	70,355		$	81,280		$	1,759	$	-		$	(930	)	$	82,109

Crude oil, fuel use, and chemicals		62,279											62,279			80,069			-		-			-			80,069
Other conversion costs		7,998								(772	)		7,226			5,243			-		-			(930	)		4,313
Tolling and terminaling costs					174								174			-			400		-			-			400
Depreciation and amortization		302			342								644			302			342		-			-			644
Total costs of goods sold		70,579			516		-			(772	)		70,323			85,614			742		-			(930	)		85,426

LEH operating fee, related party		279											279			202			-		-			-			202
General and administrative expenses		529			70		1,034						1,633			305			69		667			-			1,041
Other operating expenses(2)							117						117			-			-		177			-			177
Depreciation and amortization							74						74			-			-		61			-			61
Impairment of fixed assets							3,026						3,026
Interest, net		249			437		163						849			900			512		136			-			1,548
Total costs and expenses		71,636			1,023		4,414			(772	)		76,301			87,021			1,323		1,041			(930	)		88,455

Income (loss) before income taxes		(2,046	)		514		(4,414	)		-			(5,946	)		(5,741	)		436		(1,041	)		-			(6,346	)

Income tax benefit		-			-		1,270			-			1,270			-			-		1,346			-			1,346

Net income (loss)	$	(2,046	)	$	514	$	(3,144	)	$	-		$	(4,676	)	$	(5,741	)	$	436	$	305		$	-		$	(5,000	)

⁽¹⁾

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

⁽²⁾

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

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

Segment revenue	$	208,253		$	4,289	$	-		$	(1,912	)	$	210,630		$	239,743		$	5,053	$	-		$	(2,006	)	$	242,790

Crude oil, fuel use, and chemicals		187,524			-		-			-			187,524			221,558			-		-			-			221,558
Other conversion costs		16,000			-		-			(1,912	)		14,088			16,917			-		-			(2,006	)		14,911
Tolling and terminaling costs					436		-			-			436			-			1,220		-			-			1,220
Depreciation and amortization		901			1,026		-			-			1,927			904			1,026		-			-			1,930
Total costs of goods sold		204,425			1,462		-			(1,912	)		203,975			239,379			2,246		-			(2,006	)		239,619

LEH operating fee, related party		737								-			737			628			-		-			-			628
General and administrative expenses		1,448			230		2,014			-			3,692			933			161		2,401			-			3,495
Other operating expenses(2)							361			-			361			-			-		457			-			457
Depreciation and amortization							222			-			222			-			-		184			-			184
Impairment of fixed assets							3,026						3,026
Interest, net		2,013			1,358		494			-			3,865			2,440			1,506		408			-			4,354
Total costs and expenses		208,623			3,050		6,117			(1,912	)		215,878			243,380			3,913		3,450			(2,006	)		248,737

Income (loss) before income taxes		(370	)		1,239		(6,117	)		-			(5,248	)		(3,637	)		1,140		(3,450	)		-			(5,947	)

Income tax benefit		-			-		1,094			-			1,094			-			-		1,221			-			1,221

Net income (loss)	$	(370	)	$	1,239	$	(5,023	)	$	-		$	(4,154	)	$	(3,637	)	$	1,140	$	(2,229	)	$	-		$	(4,726	)

⁽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				Nine Months Ended
	September 30,				September 30,
	2025		2024		2025		2024
	(in thousands)				(in thousands)
Capital expenditures
Refinery operations ⁽¹⁾	$	168	$	-	$	336	$	-
Total capital expenditures	$	168	$	-	$	336	$	-

⁽¹⁾

$0.1 million of the capital expenditures were vendor financed.

	September 30,		December 31,
	2025		2024
	(in thousands)
Identifiable assets
Refinery operations	$	82,506	$	78,996
Tolling and terminaling		16,299		16,904
Corporate and other		6,311		5,996
Total identifiable assets	$	105,116	$	101,896