Derivatives (Tables)

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions

At December 31, 2019, our open commodity derivative contracts represented (in thousands of barrels):

Contract type	Purchases	Sales		Net
Futures	3,360	(3,100	)	260
Total	3,360	(3,100	)	260

Fair Value, Assets Measured on Recurring Basis

The following table provides information on the fair value amounts (in thousands) of these derivatives as of December 31, 2019 and 2018 and their placement within our consolidated balance sheets.

		December 31,
	Balance Sheet Location	2019			2018
		Asset (Liability)
Commodity derivatives (1)	Prepaid and other current assets	$	2,075		$	4,973
Commodity derivatives	Other accrued liabilities	(5,534		)	(700		)
J. Aron repurchase obligation derivative	Obligations under inventory financing agreements	173			4,085
MLC terminal obligation derivative	Obligations under inventory financing agreements	(14,717		)	—
Interest rate derivatives	Prepaid and other current assets	—			191
Interest rate derivatives	Other accrued liabilities	(314		)	—
Interest rate derivatives	Other liabilities	(1,113		)	—

_________________________________________________________

(1)

Does not include cash collateral of $10.3 million and $2.7 million recorded in Prepaid and other current assets and $9.5 million and $8.3 million in Other long-term assets as of December 31, 2019 and 2018, respectively.

Fair value amounts by hierarchy level as of December 31, 2019 and 2018 are presented gross in the tables below (in thousands):

	December 31, 2019
	Level 1			Level 2			Level 3			Gross Fair Value			Effect of Counter-party Netting			Net Carrying Value on Balance Sheet (1)
Assets
Commodity derivatives	$	4,595		$	2,075		$	—		$	6,670		$	(4,595	)	$	2,075
Liabilities
Common stock warrants	$	—		$	—		$	(8,206	)	$	(8,206	)	$	—		$	(8,206	)
Commodity derivatives	(10,129		)	—			—			(10,129		)	4,595			(5,534		)
J. Aron repurchase obligation derivative	—			—			173			173			—			173
MLC terminal obligation derivative	—			—			(14,717		)	(14,717		)	—			(14,717		)
Interest rate derivatives	—			(1,427		)	—			(1,427		)	—			(1,427		)
Total	$	(10,129	)	$	(1,427	)	$	(22,750	)	$	(34,306	)	$	4,595		$	(29,711	)

	December 31, 2018
	Level 1			Level 2			Level 3			Gross Fair Value			Effect of Counter-party Netting			Net Carrying Value on Balance Sheet (1)
Assets
Commodity derivatives	$	170		$	5,234		$	—		$	5,404		$	(431	)	$	4,973
Interest rate derivatives	—			191			—			191			—			191
Total	$	170		$	5,425		$	—		$	5,595		$	(431	)	$	5,164
Liabilities
Common stock warrants	$	—		$	—		$	(5,007	)	$	(5,007	)	$	—		$	(5,007	)
Commodity derivatives	(870		)	(261		)	—			(1,131		)	431			(700		)
J.Aron repurchase obligation derivative	—			—			4,085			4,085			—			4,085
Total	$	(870	)	$	(261	)	$	(922	)	$	(2,053	)	$	431		$	(1,622	)

_________________________________________________________

(1)

Does not include cash collateral of $19.8 million and $10.9 million as of December 31, 2019 and 2018, respectively, included within Prepaid and other current assets and Other long-term assets on our consolidated balance sheets.

Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location

The following table summarizes the pre-tax gains (losses) recognized in Net income (loss) on our consolidated statements of operations resulting from changes in fair value of derivative instruments not designated as hedges charged directly to earnings (in thousands):

		Year Ended December 31,
	Statement of Operations Classification	2019			2018			2017
Commodity derivatives	Cost of revenues (excluding depreciation)	$	(1,547	)	$	(3,420	)	$	(4,517	)
J. Aron repurchase obligation derivative	Cost of revenues (excluding depreciation)	(3,912		)	23,649			436
MLC terminal obligation derivative	Cost of revenues (excluding depreciation)	(19,326		)	—			—
Interest rate derivatives	Interest expense and financing costs, net	(1,506		)	1,309			489