Revenue (Tables)

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Schedule of revenue disaggregated by major product

The following tables present the Company’s revenue disaggregated by major product, which include a reconciliation of the disaggregated revenue by the Company’s reportable segments:


	Three Months Ended March 31, 2023
(in millions)	Petroleum Segment (1)		Nitrogen Fertilizer Segment		Other / Eliminations		Consolidated
Gasoline	$	1,010	$	—	$	—	$	1,010
Distillates (2)	919		—		48		967
Ammonia	—		38		—		38
UAN	—		164		—		164
Other urea products	—		8		—		8
Freight revenue (3)	3		11		—		14
Other (4)	33		5		19		57
Revenue from product sales	1,965		226		67		2,258
Crude oil sales	28		—		—		28

Total revenue	$	1,993	$	226	$	67	$	2,286


	Three Months Ended March 31, 2022
(in millions)	Petroleum Segment (1)		Nitrogen Fertilizer Segment		Other / Eliminations		Consolidated
Gasoline	$	1,104	$	—	$	—	$	1,104
Distillates (2)	962		—		—		962
Ammonia	—		42		—		42
UAN	—		160		—		160
Other urea products	—		9		—		9
Freight revenue (3)	4		9		—		13
Other (4)	78		3		(4)		77
Revenue from product sales	2,148		223		(4)		2,367
Crude oil sales	5		—		—		5
Other revenue	1		—		—		1
Total revenue	$	2,154	$	223	$	(4)	$	2,373

(1)The Petroleum Segment may incur broker commissions or transportation costs prior to the transfer on certain sales. The broker costs are expensed since the contract durations are less than one year. Transportation costs are accounted for as fulfillment costs and are expensed as incurred.

(2)Distillates consist primarily of diesel fuel, kerosene, jet fuel, and renewable fuels activity.

(3)Freight revenue recognized by the Petroleum Segment is primarily tariff and line loss charges rebilled to customers to reimburse the Petroleum Segment for expenses incurred from a pipeline operator. Freight revenue recognized by the Nitrogen Fertilizer Segment represents the pass-through finished goods delivery costs incurred prior to customer acceptance and is reimbursed by customers. An offsetting expense for freight is included in Cost of materials and other.

(4)Other revenue for the Petroleum Segment consists primarily of (i) renewable fuels, feedstock, and asphalt sales, and (ii) pipeline and processing fees. For the Nitrogen Fertilizer Segment, other revenue includes revenue (i) from nitric acid sales and (ii) in connection with the 45Q Transaction, from carbon oxide sales and the noncash consideration received, which is recognized as the performance obligation associated with the CO Contract is satisfied over its term of 7 years, 3 months. Revenue from the CO Contract is recognized over time based on carbon oxide volumes measured at delivery.

Summary of deferred revenue activity

A summary of the Nitrogen Fertilizer Segment’s deferred revenue activity during the three months ended March 31, 2023 is presented below:


(in millions)
Balance at December 31, 2022	$	48
Add:
New prepay contracts entered into during the period	13
Noncash consideration received as part of the 45Q Transaction	46
Less:
Revenue recognized that was included in the contract liability balance at the beginning of the period	(12)
Revenue recognized related to contracts entered into during the period	(10)
Revenue recognized related to noncash consideration	(2)

Total deferred revenue	83
Less current portion of deferred revenue	(45)
Total long-term deferred revenue	$	38