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Derivatives
 9 Months Ended
Sep. 30, 2024
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 13—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 in April 2026. At September 30, 2024, our open commodity derivative contracts represented (in thousands of barrels):
Contract TypePurchasesSalesNet
Futures97,459 (99,115)(1,656)
Swaps9,047 (13,697)(4,650)
Total106,506 (112,812)(6,306)
At September 30, 2024, 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, 2024:
20242025
Total open option collars5492,430
Weighted-average strike price - floor (in dollars)$62.55$58.15
Weighted-average strike price - ceiling (in dollars)$86.64$83.68
Earliest commencement dateOctober 2024January 2025
Furthest expiry dateDecember 2024December 2025
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 agreement 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, 2024. 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.
The following table provides information on the fair value amounts (in thousands) of these derivatives as of September 30, 2024 and December 31, 2023, and their placement within our condensed consolidated balance sheets.
Balance Sheet LocationSeptember 30, 2024December 31, 2023
Asset (Liability)
Commodity derivatives (1)Prepaid and other current assets$21,035 $43,356 
Commodity derivatives (2)
Other accrued liabilities(5,047)(530)
Commodity derivativesOther liabilities(4,042)— 
J. Aron repurchase obligation derivativeObligations under inventory financing agreements— (392)
Citi repurchase obligation derivative
Obligations under inventory financing agreements503 — 
Interest rate derivativesOther liabilities(516)(821)
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(1)Does not include cash collateral of $32.4 million and $21.8 million recorded in Prepaid and other current assets as of September 30, 2024 and December 31, 2023, respectively, and $9.5 million in Other long-term assets as of December 31, 2023. As of September 30, 2024, we had no cash collateral recorded in Other long-term assets. Does not include $9.8 million recorded in Prepaid and other current assets as of September 30, 2024 related to realized derivatives receivable.
(2)Does not include $27.2 million recorded in Other accrued liabilities as of December 31, 2023 related to realized derivatives payable. As of September 30, 2024, we had no realized derivatives payable recorded in Other accrued liabilities.
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 Location2024202320242023
Commodity derivativesCost of revenues (excluding depreciation)$43,705 $(72,131)$5,778 $(78,859)
J. Aron repurchase obligation derivativeCost of revenues (excluding depreciation)— (51,344)1,053 (45,816)
Citi repurchase obligation derivative
Cost of revenues (excluding depreciation)912 — 503 — 
MLC terminal obligation derivativeCost of revenues (excluding depreciation)— (37,616)— (34,149)
Interest rate derivativesInterest expense and financing costs, net(576)121 305 664