Derivatives (Tables)

12 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions

At December 31, 2020, our open commodity derivative contracts represented (in thousands of barrels):

Contract type	Purchases	Sales	Net
Futures	360	—	360
Swaps	1,190	(1,000)	190
Total	1,550	(1,000)	550

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, 2020 and 2019 and their placement within our consolidated balance sheets.

		December 31,
	Balance Sheet Location	2020		2019
		Asset (Liability)
Commodity derivatives (1)	Prepaid and other current assets	$	1,346	$	2,075
Commodity derivatives	Other accrued liabilities	—		(5,534)
J. Aron repurchase obligation derivative	Obligations under inventory financing agreements	(20,797)		173
MLC terminal obligation derivative	Obligations under inventory financing agreements	(10,161)		(14,717)
Interest rate derivatives	Other accrued liabilities	(966)		(314)
Interest rate derivatives	Other liabilities	(2,027)		(1,113)

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(1)Does not include cash collateral of $1.5 million and $10.3 million recorded in Prepaid and other current assets and $9.5 million and $9.5 million in Other long-term assets as of December 31, 2020 and 2019, respectively.

Fair value amounts by hierarchy level as of December 31, 2020 and 2019 are presented gross in the tables below (in thousands):

	December 31, 2020
	Level 1		Level 2		Level 3		Gross Fair Value		Effect of Counter-party Netting		Net Carrying Value on Balance Sheet (1)
Assets
Commodity derivatives	$	616	$	1,573	$	—	$	2,189	$	(843)	$	1,346
Liabilities
Commodity derivatives	$	(3)	$	(840)	$	—	$	(843)	$	843	$	—
J. Aron repurchase obligation derivative	—		—		(20,797)		(20,797)		—		(20,797)
MLC terminal obligation derivative	—		—		(10,161)		(10,161)		—		(10,161)
Interest rate derivatives	—		(2,993)		—		(2,993)		—		(2,993)
Gross environmental credit obligations (2)	—		(150,482)		—		(150,482)		—		(150,482)
Total	$	(3)	$	(154,315)	$	(30,958)	$	(185,276)	$	843	$	(184,433)

	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)
Gross environmental credit obligations (2)	—		(22,776)		—		(22,776)		—		(22,776)
Total	$	(10,129)	$	(24,203)	$	(22,750)	$	(57,082)	$	4,595	$	(52,487)

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(1)Does not include cash collateral of $11.0 million and $19.8 million as of December 31, 2020 and 2019, respectively, included within Prepaid and other current assets and Other long-term assets on our consolidated balance sheets.

(2)Does not include RINs assets and other environmental credits of $26.7 million and $19.1 million presented as Inventories on our consolidated balance sheet and stated at the lower of cost and net realizable value as of December 31, 2020 and 2019, respectively.

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	2020		2019		2018
Commodity derivatives	Cost of revenues (excluding depreciation)	$	(51,902)	$	(1,547)	$	(3,420)
J. Aron repurchase obligation derivative	Cost of revenues (excluding depreciation)	(20,970)		(3,912)		23,649
MLC terminal obligation derivative	Cost of revenues (excluding depreciation)	39,820		(19,326)		—
Interest rate derivatives	Interest expense and financing costs, net	(2,265)		(1,506)		1,309