Derivatives (Tables)

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions

At September 30, 2023, our open commodity derivative contracts represented (in thousands of barrels):

Contract Type	Purchases	Sales	Net
Futures	31,520	(31,820)	(300)
Swaps	2,935	(6,482)	(3,547)
Total	34,455	(38,302)	(3,847)

Schedule of Derivative Instruments

The following table provides information on these option collars at our refineries as of September 30, 2023:

	2023		2024
Average barrels per month	168,333		146,500
Weighted-average strike price - floor (in dollars)	$	65.07	$	60.96
Weighted-average strike price - ceiling (in dollars)	$	88.10	$	83.19
Earliest commencement date	September 2023		January 2024
Furthest expiry date	December 2023		June 2024

Schedule of 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, 2023 and December 31, 2022, and their placement within our condensed consolidated balance sheets.

	Balance Sheet Location	September 30, 2023		December 31, 2022
		Asset (Liability)
Commodity derivatives (1)	Prepaid and other current assets	$	15,207	$	495
Commodity derivatives	Other accrued liabilities	(33,980)		(10,989)
Environmental credit derivatives	Other accrued liabilities	(1,931)		—
J. Aron repurchase obligation derivative	Obligations under inventory financing agreements	(57,972)		(12,156)
MLC terminal obligation derivative	Obligations under inventory financing agreements	(6,429)		14,435
Interest rate derivatives	Other long-term assets	664		—

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(1)Does not include cash collateral of $22.8 million and $40.8 million recorded in Prepaid and other current assets as of September 30, 2023 and December 31, 2022, respectively, and $9.5 million in Other long-term assets as of both September 30, 2023 and December 31, 2022.

Schedule of 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	2023		2022		2023		2022
Commodity derivatives	Cost of revenues (excluding depreciation)	$	(72,131)	$	20,728	$	(78,859)	$	(36,750)
J. Aron repurchase obligation derivative	Cost of revenues (excluding depreciation)	(51,344)		58,851		(45,816)		28,811
MLC terminal obligation derivative	Cost of revenues (excluding depreciation)	(37,616)		18,423		(34,149)		(71,769)
Interest rate derivatives	Interest expense and financing costs, net	121		—		664		—