Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value Amounts by Hierarchy Level

Fair value amounts by hierarchy level as of March 31, 2023 and December 31, 2022, are presented gross in the tables below (in thousands):

	March 31, 2023
	Level 1		Level 2		Level 3		Gross Fair Value		Effect of Counter-Party Netting		Net Carrying Value on Balance Sheet (1)
Assets
Commodity derivatives	$	180,862	$	9,327	$	—	$	190,189	$	(182,354)	$	7,835
Liabilities
Commodity derivatives	$	(180,397)	$	(4,004)	$	—	$	(184,401)	$	182,354	$	(2,047)
J. Aron repurchase obligation derivative	—		—		1,224		1,224		—		1,224
MLC terminal obligation derivative	—		—		(7,203)		(7,203)		—		(7,203)
Gross environmental credit obligations (2)	—		(346,683)		—		(346,683)		—		(346,683)
Total liabilities	$	(180,397)	$	(350,687)	$	(5,979)	$	(537,063)	$	182,354	$	(354,709)

	December 31, 2022
	Level 1		Level 2		Level 3		Gross Fair Value		Effect of Counter-Party Netting		Net 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 liabilities	$	(172,529)	$	(557,666)	$	2,279	$	(727,916)	$	169,415	$	(558,501)

_________________________________________________________

(1)Does not include cash collateral of $28.4 million and $50.3 million as of March 31, 2023 and December 31, 2022, respectively, included within Prepaid and other current assets and Other long-term assets on our condensed consolidated balance sheets.

(2)Does not include RINs assets and other environmental credits of $193.2 million and $258.2 million presented as Inventories on our condensed consolidated balance sheet and stated at the lower of cost and net realizable value as of March 31, 2023 and December 31, 2022, 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 March 31,
	2023		2022
Balance, at beginning of period	$	2,279	$	(37,321)
Settlements	(4,615)		92,308
Total losses included in earnings (1)	(3,643)		(107,665)
Balance, at end of period	$	(5,979)	$	(52,678)

_________________________________________________________

(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 March 31, 2023 and December 31, 2022 are as follows (in thousands):

	March 31, 2023
	Carrying Value		Fair Value
ABL Credit Facility due 2025 (2)	$	—	$	—
Term Loan Credit Agreement due 2030 (1)	534,321		539,715

	December 31, 2022
	Carrying Value		Fair 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

_________________________________________________________

(1)The fair value measurements of the Term Loan Credit Agreement, 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.