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Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2022
Fair Value Disclosures [Abstract]  
Fair Value Amounts by Hierarchy Level Fair value amounts by hierarchy level as of September 30, 2022, and December 31, 2021, are presented gross in the tables below (in thousands):
September 30, 2022
Level 1Level 2Level 3Gross Fair ValueEffect of Counter-Party NettingNet Carrying Value on Balance Sheet (1)
Assets
Commodity derivatives$341,733 $6,775 $— $348,508 $(331,444)$17,064 
Liabilities
Commodity derivatives$(326,635)$(5,165)$— $(331,800)$331,444 $(356)
J. Aron repurchase obligation derivative— — 13,660 13,660 — 13,660 
MLC terminal obligation derivative— — (326)(326)— (326)
Gross environmental credit obligations (2)— (489,613)— (489,613)— (489,613)
Total liabilities$(326,635)$(494,778)$13,334 $(808,079)$331,444 $(476,635)
December 31, 2021
Level 1Level 2Level 3Gross Fair ValueEffect of Counter-Party NettingNet Carrying Value on Balance Sheet (1)
Assets
Commodity derivatives$4,283 $4,513 $— $8,796 $(7,536)$1,260 
Liabilities
Commodity derivatives$(3,964)$(5,003)$— $(8,967)$7,536 $(1,431)
J. Aron repurchase obligation derivative— — (15,151)(15,151)— (15,151)
MLC terminal obligation derivative— — (22,170)(22,170)— (22,170)
Gross environmental credit obligations (2)— (311,014)— (311,014)— (311,014)
Total liabilities$(3,964)$(316,017)$(37,321)$(357,302)$7,536 $(349,766)
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(1)Does not include cash collateral of $23.3 million and $6.1 million as of September 30, 2022, and December 31, 2021, respectively, included within Prepaid and other current assets and $9.5 million included within Other long-term assets as of September 30, 2022, and December 31, 2021, on our condensed consolidated balance sheets.
(2)Does not include RINs assets and other environmental credits of $194.0 million and $120.1 million presented as Inventories on our condensed consolidated balance sheet and stated at the lower of cost and net realizable value as of September 30, 2022, and December 31, 2021, respectively.
Roll Forward of Level 3 Financial Instruments Measured at Fair Value on a Recurring Basis A roll forward of Level 3 derivative instruments measured at fair value on a recurring basis is as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Balance, at beginning of period$(8,492)$(36,364)$(37,321)$(30,958)
Settlements(55,448)5,682 93,613 61,194 
Total gains (losses) included in earnings (1)77,274 (14,641)(42,958)(75,559)
Balance, at end of period$13,334 $(45,323)$13,334 $(45,323)
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(1)Included in Cost of revenues (excluding depreciation) on our condensed consolidated statements of operations.
Carrying Value and Fair Value of Long-term Debt and Other Financial Instruments
The carrying value and fair value of long-term debt and other financial instruments as of September 30, 2022 and December 31, 2021 are as follows (in thousands):
September 30, 2022
Carrying ValueFair Value
ABL Credit Facility due 2025 (2)$— $— 
7.75% Senior Secured Notes due 2025 (1)
276,824 268,074 
Term Loan B Facility due 2026 (1)200,913 202,641 
12.875% Senior Secured Notes due 2026 (1)
30,051 33,647 
December 31, 2021
Carrying ValueFair Value
ABL Credit Facility due 2025 (2)$— $— 
7.75% Senior Secured Notes due 2025 (1)
290,621 299,700 
Term Loan B Facility due 2026 (1)208,903 214,827 
12.875% Senior Secured Notes due 2026 (1)
65,034 75,758 
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(1)The fair value measurements of the 7.75% Senior Secured Notes, Term Loan B Facility, and 12.875% Senior Secured Notes are considered Level 2 measurements in the fair value hierarchy as discussed below.
(2)The fair value measurement of the ABL Credit Facility is considered a Level 3 measurement in the fair value hierarchy.