Derivatives

9 Months Ended

Sep. 30, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

Derivatives

Commodity Derivatives

Our condensed consolidated balance sheets present derivative assets and liabilities on a net basis. Please read Note 12—Fair Value Measurements for the gross fair value and net carrying value of our derivative instruments.

Our open futures and over-the-counter (“OTC”) swaps expire by December 2026. At September 30, 2025, our open commodity derivative contracts represented (in thousands of barrels):

Contract Type	Purchases	Sales	Net
Futures	1,625	(2,405)	(780)
Swaps	115,199	(122,284)	(7,085)
Total	116,824	(124,689)	(7,865)

At September 30, 2025, we also had option collars that economically hedge a portion of our internally consumed fuel at our refineries. The following table provides information on these option collars at our refineries as of September 30, 2025:

	2025	2026
Total open option collars	570	1,895
Weighted-average strike price - floor (in dollars)	$52.00	$45.59
Weighted-average strike price - ceiling (in dollars)	$83.55	$82.86
Earliest commencement date	October 2025	January 2026
Furthest expiry date	December 2025	December 2026

Interest Rate Derivatives

We are exposed to interest rate volatility in our ABL Credit Facility, Term Loan Credit Agreement, and the Inventory Intermediation Agreement. We may utilize interest rate swaps to manage our interest rate risk. On April 12, 2023, we entered into an interest rate collar transaction to manage our interest rate risk related to the Term Loan Credit Agreement. The interest rate collar reduces variable interest rate risk from May 31, 2023, through May 31, 2026, with a notional amount of $300.0 million as of September 30, 2025. The terms of the agreement provide for an interest rate cap of 5.50% and floor of 2.30%, based on the three month SOFR as of the fixing date. The interest rate collar transaction expires on May 31, 2026.

During the second and third quarters of 2025, we entered into six additional interest rate collar transactions to reduce our variable interest rate risk related to the Term Loan Credit Agreement. These agreements are effective from May 31, 2026, through May 31, 2029, with a total notional amount of $300.0 million as of September 30, 2025. The terms of the agreements provide for an average interest rate cap of 5.50% and an average floor of 2.08%, based on the three month SOFR as of the fixing date. The following table provides information on the fair value amounts (in thousands) of these derivatives as of September 30, 2025, and December 31, 2024, and their placement within our condensed consolidated balance sheets.

	Balance Sheet Location	September 30, 2025		December 31, 2024
		Asset (Liability)
Commodity derivatives (1)	Prepaid and other current assets	$	39,927	$	10,591
Commodity derivatives (1)	Other long-term assets	3,945		—
Commodity derivatives (2)	Other accrued liabilities	(6,809)		(13,456)
Citi repurchase obligation derivative	Obligations under inventory financing agreements	1,836		(1,588)
Interest rate derivatives	Other accrued liabilities	(4)		—
Interest rate derivatives	Other liabilities	(560)		(24)

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(1)Does not include cash collateral of $8.6 million and $38.6 million recorded in Prepaid and other current assets as of September 30, 2025, and December 31, 2024, respectively. Does not include $3.9 million and $2.3 million recorded in Prepaid and other current assets as of September 30, 2025, and December 31, 2024, respectively, related to realized derivatives receivable.

(2)Does not include $27.2 million and $6.1 million recorded in Other accrued liabilities as of September 30, 2025, and December 31, 2024, respectively, related to realized derivatives payable.

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	2025		2024		2025		2024
Commodity derivatives	Cost of revenues (excluding depreciation)	$	12,206	$	43,705	$	54,128	$	5,778
J. Aron repurchase obligation derivative	Cost of revenues (excluding depreciation)	—		—		—		1,053
Citi repurchase obligation derivative	Cost of revenues (excluding depreciation)	5,514		912		3,424		503
Interest rate derivatives	Interest expense and financing costs, net	195		(576)		(539)		305