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Derivatives (Tables)

6 Months Ended

Jun. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions

At June 30, 2022, our open commodity derivative contracts represented (in thousands of barrels):

Contract type						Purchases						Sales						Net
Futures						12,007						(13,192)						(1,185)
Swaps						1,000						(2,530)						(1,530)
Total						13,007						(15,722)						(2,715)

Schedule of Derivative Instruments

The following table provides information on these option collars at our refineries as of June 30, 2022:

June 30, 2022

Average barrels per month

75,000

Weighted-average strike price - floor (in dollars)

$

59.34

Weighted-average strike price - ceiling (in dollars)

$

75.36

Earliest commencement date

January 2022

Furthest expiry date

December 2022

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 June 30, 2022, and December 31, 2021, and their placement within our condensed consolidated balance sheets.

			Balance Sheet Location						June 30, 2022						December 31, 2021
									Asset (Liability)
Commodity derivatives (1)			Prepaid and other current assets						$	33,864					$	1,260
Commodity derivatives			Other accrued liabilities						(41,347)						(1,431)
J. Aron repurchase obligation derivative			Obligations under inventory financing agreements						(45,191)						(15,151)
MLC terminal obligation derivative			Obligations under inventory financing agreements						36,699						(22,170)

_________________________________________________________

(1)Does not include cash collateral of $72.2 million and $6.1 million recorded in Prepaid and other current assets as of June 30, 2022, and December 31, 2021, respectively, and $9.5 million in Other long-term assets as of both June 30, 2022, and December 31, 2021.

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 June 30,												Six Months Ended June 30,
			Statement of Operations Location						2022						2021						2022						2021
Commodity derivatives			Cost of revenues (excluding depreciation)						$	(39,024)					$	(10,223)					$	(57,478)					$	(9,592)
J. Aron repurchase obligation derivative			Cost of revenues (excluding depreciation)						13,229						(4,542)						(30,040)						(5,317)
MLC terminal obligation derivative			Cost of revenues (excluding depreciation)						(25,796)						(31,229)						(90,192)						(55,601)
Interest rate derivatives			Interest expense and financing costs, net						—						—						—						104

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