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Leases

12 Months Ended

Dec. 31, 2024

Leases [Abstract]

Leases

(6) Leases

Lease Overview

We lease certain pipelines, storage tanks, railcars, office space, land, and equipment across our refining, fertilizer, and corporate operations. Most of our leases include one or more renewal options to extend the lease term, which can be exercised at our sole discretion. Certain leases also include options to purchase the leased asset. Certain of our lease agreements include rental payments, which are adjusted periodically for factors such as inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Additionally, we do not have any material lessor or sub-leasing arrangements.

On December 23, 2024, in connection with the sale of our Membership Interests, a subsidiary of the Company entered into a pipeline transportation agreement, which we classify as an operating lease agreement, with Plains whereby the Company is required to transport all of the crude oil for the Coffeyville Refinery through the Midway Pipeline, except for certain gathered barrels. The consideration for this lease is 100% variable based on performance and there is no minimum volume commitment.

Balance Sheet Summary as of December 31, 2024 and 2023

The following tables summarize the right-of-use (“ROU”) asset and lease liability balances for the Company’s operating and finance leases at December 31, 2024 and 2023:

			December 31, 2024												December 31, 2023
(in millions)			Operating Leases						Finance Leases						Operating Leases						Finance Leases
ROU assets, net
Equipment, real estate and other			$	33					$	36					$	29					$	14
Pipeline and storage			25						14						12						17
Railcars			17						—						12						—
Lease liability
Equipment, real estate and other			$	30					$	33					$	25					$	16
Pipelines and storage			25						25						12						28
Railcars			16						—						12						—

Lease Expense Summary for the Year Ended December 31, 2024, 2023 and 2022

For the years ended December 31, 2024, 2023, and 2022, we recognized lease expense comprised of the following components:

			Year Ended December 31,
(in millions)			2024						2023						2022
Operating lease expense			$	19					$	18					$	16
Finance lease expense:
Amortization of ROU asset			5						6						6
Interest expense on lease liability			4						4						5
Short-term lease expense			12						11						11

Lease Terms and Discount Rates

The following outlines the remaining lease terms and discount rates used in the measurement of the Company’s ROU assets and lease liabilities at December 31, 2024 and 2023:

			December 31, 2024												December 31, 2023
			Operating Leases						Finance Leases						Operating Leases						Finance Leases
Weighted-average remaining lease term			5.4 years						8.3 years						5.4 years						5.3 years
Weighted-average discount rate			7.9		%				10.2		%				6.7		%				9.0		%

Maturities of Lease Liabilities

The following summarizes the remaining minimum lease payments through maturity of the Company’s lease liabilities at December 31, 2024:

(in millions)			Operating Leases						Finance Leases
Year Ended December 31,
2025			$	21					$	14
2026			19						14
2027			15						13
2028			10						11
2029			8						8
Thereafter			15						29
Total lease payments			88						89
Less: imputed interest			(17)						(31)
Total lease liability			$	71					$	58

Leases

(6) Leases

Lease Overview

We lease certain pipelines, storage tanks, railcars, office space, land, and equipment across our refining, fertilizer, and corporate operations. Most of our leases include one or more renewal options to extend the lease term, which can be exercised at our sole discretion. Certain leases also include options to purchase the leased asset. Certain of our lease agreements include rental payments, which are adjusted periodically for factors such as inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Additionally, we do not have any material lessor or sub-leasing arrangements.

On December 23, 2024, in connection with the sale of our Membership Interests, a subsidiary of the Company entered into a pipeline transportation agreement, which we classify as an operating lease agreement, with Plains whereby the Company is required to transport all of the crude oil for the Coffeyville Refinery through the Midway Pipeline, except for certain gathered barrels. The consideration for this lease is 100% variable based on performance and there is no minimum volume commitment.

Balance Sheet Summary as of December 31, 2024 and 2023

The following tables summarize the right-of-use (“ROU”) asset and lease liability balances for the Company’s operating and finance leases at December 31, 2024 and 2023:

			December 31, 2024												December 31, 2023
(in millions)			Operating Leases						Finance Leases						Operating Leases						Finance Leases
ROU assets, net
Equipment, real estate and other			$	33					$	36					$	29					$	14
Pipeline and storage			25						14						12						17
Railcars			17						—						12						—
Lease liability
Equipment, real estate and other			$	30					$	33					$	25					$	16
Pipelines and storage			25						25						12						28
Railcars			16						—						12						—

Lease Expense Summary for the Year Ended December 31, 2024, 2023 and 2022

For the years ended December 31, 2024, 2023, and 2022, we recognized lease expense comprised of the following components:

			Year Ended December 31,
(in millions)			2024						2023						2022
Operating lease expense			$	19					$	18					$	16
Finance lease expense:
Amortization of ROU asset			5						6						6
Interest expense on lease liability			4						4						5
Short-term lease expense			12						11						11

Lease Terms and Discount Rates

The following outlines the remaining lease terms and discount rates used in the measurement of the Company’s ROU assets and lease liabilities at December 31, 2024 and 2023:

			December 31, 2024												December 31, 2023
			Operating Leases						Finance Leases						Operating Leases						Finance Leases
Weighted-average remaining lease term			5.4 years						8.3 years						5.4 years						5.3 years
Weighted-average discount rate			7.9		%				10.2		%				6.7		%				9.0		%

Maturities of Lease Liabilities

The following summarizes the remaining minimum lease payments through maturity of the Company’s lease liabilities at December 31, 2024:

(in millions)			Operating Leases						Finance Leases
Year Ended December 31,
2025			$	21					$	14
2026			19						14
2027			15						13
2028			10						11
2029			8						8
Thereafter			15						29
Total lease payments			88						89
Less: imputed interest			(17)						(31)
Total lease liability			$	71					$	58

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- References

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- Definition

The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 842
-SubTopic 20
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/842-20/tableOfContent

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- Definition

The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 842
-SubTopic 20
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/842-20/tableOfContent

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