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Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
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, 2022 and 2021 and their placement within our consolidated balance sheets.
December 31,
Balance Sheet Location20222021
Asset (Liability)
Commodity derivatives (1)Prepaid and other current assets$495 $1,260 
Commodity derivatives Other accrued liabilities(10,989)(1,431)
J. Aron repurchase obligation derivativeObligations under inventory financing agreements(12,156)(15,151)
MLC terminal obligation derivativeObligations under inventory financing agreements14,435 (22,170)
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(1)Does not include cash collateral of $40.8 million and $6.1 million recorded in Prepaid and other current assets as of December 31, 2022, and December 31, 2021, respectively, and $9.5 million in Other long-term assets as of both December 31, 2022 and December 31, 2021.
Fair value amounts by hierarchy level as of December 31, 2022 and 2021 are presented gross in the tables below (in thousands):
December 31, 2022
Level 1Level 2Level 3Gross Fair ValueEffect of Counter-party NettingNet Carrying Value on Balance Sheet (1)
Assets
Commodity derivatives$161,541 $8,369 $— $169,910 $(169,415)$495 
Liabilities
Commodity derivatives$(172,529)$(7,875)$— $(180,404)$169,415 $(10,989)
J. Aron repurchase obligation derivative— — (12,156)(12,156)— (12,156)
MLC terminal obligation derivative— — 14,435 14,435 — 14,435 
Gross environmental credit obligations (2)— (549,791)— (549,791)— (549,791)
Total (3)$(172,529)$(557,666)$2,279 $(727,916)$169,415 $(558,501)
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 $(1,431)
J. Aron repurchase obligation derivative— — (15,151)(15,151)— (15,151)
MLC terminal obligation derivative— — (22,170)(22,170)— (22,170)
Gross environmental credit obligations (2)— (311,014)— (311,014)— (311,014)
Total (3)$(3,964)$(316,017)$(37,321)$(357,302)$7,536 $(349,766)
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(1)Does not include cash collateral of $50.3 million and $15.6 million as of December 31, 2022 and 2021, 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 $258.2 million and $120.1 million presented as Inventories on our consolidated balance sheet and stated at the lower of cost and net realizable value as of December 31, 2022 and 2021, respectively.
(3)The interest rate derivative was settled in February 2021, therefore, there is no asset or liability related to the interest rate derivative on December 31, 2022 or 2021. Please read Note 14—Derivatives for further information.
Reconciliation of Level 3 Derivative Instruments, Fair Value
A roll forward of Level 3 derivative instruments measured at fair value on a recurring basis is as follows (in thousands):
Year Ended December 31,
202220212020
Balance, beginning of period$(37,321)$(30,958)$(22,750)
Settlements86,242 61,247 (31,328)
Total gains (losses) included in earnings(46,642)(67,610)23,120 
Balance, end of period$2,279 $(37,321)$(30,958)
Schedule of 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 December 31, 2022 and 2021 are as follows (in thousands):
December 31, 2022
Carrying ValueFair Value
ABL Credit Facility due 2025 (2)$— $— 
7.75% Senior Secured Notes due 2025 (1)
277,137 276,785 
Term Loan B Facility due 2026 (1)198,268 201,094 
12.875% Senior Secured Notes due 2026 (1)
30,127 34,029 
December 31, 2021
Carrying ValueFair Value
ABL Credit Facility due 2025 (2)$— $— 
7.75% Senior Secured Notes due 2025 (1)
290,621 299,700 
Term Loan B Facility due 2026 (1)208,903 214,827 
  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 measurements of the ABL Credit Facility is considered Level 3 measurements in the fair value hierarchy.