XML 22 R11.htm IDEA: XBRL DOCUMENT
v3.24.3

Investment in Laramie Energy | 9 Months Ended
--- | ---
Sep. 30, 2024
Equity Method Investments and Joint Ventures [Abstract] |
Investment in Laramie Energy | Refining and Logistics Equity Investments Yellowstone Energy Limited Partnership On June 1, 2023, we completed the Billings Acquisition and acquired a 65% limited partnership ownership interest in YELP. YELP owns a cogeneration facility in Billings, Montana that converts petroleum coke, supplied from our Montana refinery and other nearby third-party refineries, into power production for the local utility grid. We account for our investment in YELP using the equity method as we have the ability to exert significant influence over, but do not control its operating and financial policies. Our proportionate share of YELP’s net income and the depreciation of our basis difference are included in Equity earnings from refining and logistics investments on our condensed consolidated statements of operations and reported as part of our refining segment. Please read Note 19—Segment Information for further information on our reporting segments. Our proportionate share of YELP’s net income (loss) is recorded on a one-month lag. The change in our equity investment in YELP is as follows (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Beginning balance | $ | 60,618 |  |  | $ | 58,019 |  |  | $ | 59,824 |  |  | $ | — |
Acquisition of investment | — |  |  | — |  |  | — |  |  | 58,019 |
Equity earnings from YELP | 1,446 |  |  | 2,740 |  |  | 8,201 |  |  | 2,740 |
Amortization of basis difference | (348) |  |  | (348) |  |  | (1,044) |  |  | (348) |
Dividends received | (1,055) |  |  | (5,558) |  |  | (6,320) |  |  | (5,558) |
Ending balance | $ | 60,661 |  |  | $ | 54,853 |  |  | $ | 60,661 |  |  | $ | 54,853 |
Yellowstone Pipeline Company On June 1, 2023, we completed the Billings Acquisition and acquired a 40% ownership interest in YPLC. YPLC owns a refined products pipeline that begins at our Montana refinery and transports refined product throughout Montana and the Pacific Northwest. We account for our ownership interest in YPLC using the equity method as we have the ability to exert significant influence over, but do not control, its operating and financial policies. Our proportionate share of YPLC’s net income and the accretion of our basis difference is included in Equity earnings from refining and logistics investments on our condensed consolidated statements of operations and reported as part of our logistics segment. Please read Note 19—Segment Information for further information on our reporting segments. The change in our equity investment in YPLC is as follows (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Beginning balance | $ | 27,600 |  |  | $ | 26,406 |  |  | $ | 27,662 |  |  | $ | — |
Acquisition of investment | — |  |  | — |  |  | — |  |  | 28,581 |
Equity earnings from YPLC | 1,872 |  |  | 1,490 |  |  | 5,574 |  |  | 1,915 |
Accretion of basis difference | 38 |  |  | 51 |  |  | 114 |  |  | 51 |
Dividends received | — |  |  | — |  |  | (3,840) |  |  | (2,600) |
Ending balance | $ | 29,510 |  |  | $ | 27,947 |  |  | $ | 29,510 |  |  | $ | 27,947 |
Investment in Laramie Energy As of September 30, 2024, we owned a 46.0% ownership interest in Laramie Energy, an entity focused on developing and producing natural gas in Garfield, Mesa, and Rio Blanco counties, Colorado. The balance of our investment in Laramie Energy was $15.7 million and $14.3 million as of September 30, 2024 and December 31, 2023, respectively. On February 21, 2023, Laramie Energy entered into a new term loan agreement which provides a $205 million first lien term loan facility with $160.0 million funded at closing and an optional $45 million delayed draw commitment, subject to certain terms and conditions. The delayed draw commitment expired in August 2024. Under the terms of the new term loan, Laramie is permitted to make future cash distributions to its owners, including us, subject to certain restrictions. Laramie Energy’s term loan matures on February 21, 2027. As of September 30, 2024 and December 31, 2023, the term loan had an outstanding balance of $160.0 million. On March 1, 2023, pursuant to its new term loan agreement, Laramie Energy made a one-time cash distribution to its owners, including us, based on ownership percentage. Our share of this distribution was $10.7 million, which was reflected as Return of capital from Laramie Energy, LLC on our condensed consolidated statements of cash flows. We recorded the cash received as Equity earnings (losses) from Laramie Energy, LLC on our condensed consolidated statements of operations because the carrying value of our investment in Laramie Energy was zero at the time of such distribution. On April 29, 2024, Laramie Energy made a one-time cash distribution to its owners, including us, based on ownership percentage. Our share of this distribution was $1.5 million. Effective February 21, 2023, and concurrent with the new term loan agreement noted above, we resumed the application of equity method accounting with respect to our investment in Laramie Energy. At September 30, 2024, our equity in the underlying net assets of Laramie Energy exceeded the carrying value of our investment by approximately $66.3 million. This difference arose primarily due to other-than-temporary impairments of our equity investment in Laramie Energy. The change in our equity investment in Laramie Energy is as follows (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Beginning balance | $ | 15,997 |  |  | $ | — |  |  | $ | 14,279 |  |  | $ | — |
Equity losses from Laramie Energy | (1,950) |  |  | — |  |  | (1,976) |  |  | — |
Accretion of basis difference | 1,614 |  |  | — |  |  | 4,843 |  |  | — |
Dividends received | — |  |  | — |  |  | (1,485) |  |  | — |
Ending balance | $ | 15,661 |  |  | $ | — |  |  | $ | 15,661 |  |  | $ | — |

X
- References No definition available. + Details
Name: | us-gaap_EquityMethodInvestmentsAndJointVenturesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 740 -SubTopic 323 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478156/740-323-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org/323/tableOfContent + Details
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration