Derivatives (Tables)

9 Months Ended

Sep. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions

At September 30, 2022, our open commodity derivative contracts represented (in thousands of barrels):

Contract type	Purchases	Sales	Net
Futures	36,086	(35,126)	960
Swaps	1,025	(1,025)	—
Total	37,111	(36,151)	960

Schedule of Derivative Instruments

The following table provides information on these option collars at our refineries as of September 30, 2022:

	2022		2023
Average barrels per month	85,000		40,000
Weighted-average strike price - floor (in dollars)	$	61.12	$	64.78
Weighted-average strike price - ceiling (in dollars)	$	86.55	$	102.96
Earliest commencement date	October 2022		January 2023
Furthest expiry date	December 2022		June 2023

Fair Value Amounts of Derivatives and Placement in Consolidated Balance Sheets

The following table provides information on the fair value amounts (in thousands) of these derivatives as of September 30, 2022, and December 31, 2021, and their placement within our condensed consolidated balance sheets.

	Balance Sheet Location	September 30, 2022		December 31, 2021
		Asset (Liability)
Commodity derivatives (1)	Prepaid and other current assets	$	17,064	$	1,260
Commodity derivatives	Other accrued liabilities	(356)		(1,431)
J. Aron repurchase obligation derivative	Obligations under inventory financing agreements	13,660		(15,151)
MLC terminal obligation derivative	Obligations under inventory financing agreements	(326)		(22,170)

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(1)Does not include cash collateral of $23.3 million and $6.1 million recorded in Prepaid and other current assets as of September 30, 2022, and December 31, 2021, respectively, and $9.5 million in Other long-term assets as of both September 30, 2022, and December 31, 2021.

Pre-Tax Gain (Loss) Recognized in the Statement of Operations

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

		Three Months Ended September 30,				Nine Months Ended September 30,
	Statement of Operations Location	2022		2021		2022		2021
Commodity derivatives	Cost of revenues (excluding depreciation)	$	20,728	$	(6,578)	$	(36,750)	$	(16,170)
J. Aron repurchase obligation derivative	Cost of revenues (excluding depreciation)	58,851		(3,470)		28,811		(8,787)
MLC terminal obligation derivative	Cost of revenues (excluding depreciation)	18,423		(11,171)		(71,769)		(66,772)
Interest rate derivatives	Interest expense and financing costs, net	—		—		—		104