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Leases
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases Leases
We have cancellable and non-cancellable finance and operating lease liabilities for the lease of land, vehicles, office space, retail facilities, and other facilities used in the storage and transportation of crude oil and refined products. Most of our leases include one or more options to renew, with renewal terms that can extend the lease term from one to 30 years or more. There are no material residual value guarantees associated with any of our leases.
The following table provides information on the amounts (in thousands, except lease term and discount rates) of our ROU assets and liabilities, weighted average remaining lease term, and weighted average discount rate as of December 31, 2024 and 2023, and their placement within our consolidated balance sheets:
Lease typeBalance Sheet LocationDecember 31, 2024December 31, 2023
Assets
FinanceProperty, plant, and equipment$30,655 $28,264 
FinanceAccumulated amortization(14,543)(12,212)
FinanceProperty, plant, and equipment, net16,112 16,052 
OperatingOperating lease right-of-use assets428,120 346,454 
Total right-of-use assets$444,232 $362,506 
Liabilities
Current
FinanceOther accrued liabilities$2,252 $1,820 
OperatingOperating lease liabilities80,174 72,833 
Long-term
FinanceFinance lease liabilities11,690 12,438 
OperatingOperating lease liabilities362,092 282,517 
Total lease liabilities$456,208 $369,608 
Weighted-average remaining lease term (in years)
Finance10.2611.02
Operating7.178.67
Weighted-average discount rate
Finance6.97 %8.04 %
Operating7.76 %7.24 %
The following table summarizes the lease costs recognized in our consolidated statements of operations (in thousands):
Year Ended December 31,
Lease cost type202420232022
Finance lease cost
Amortization of finance lease ROU assets$2,335 $1,906 $1,917 
Interest on lease liabilities987 636 619 
Operating lease cost112,850 98,928 89,591 
Variable lease cost7,197 9,246 5,478 
Short-term lease cost4,183 13,500 8,575 
Net lease cost$127,552 $124,216 $106,180 
Operating lease income (1)$(6,011)$(14,908)$(11,030)
_________________________________________________________
(1)At December 31, 2024 and 2023, Property, plant, and equipment, net associated with leased assets was approximately $4.8 million and $9.5 million, respectively. The majority of our lessor income comes from leases with lease terms of one year or less and the estimated future undiscounted cash flows from lessor income are not expected to be material.
The following table summarizes the supplemental cash flow information related to leases as follows (in thousands):
Year Ended December 31,
Lease type202420232022
Cash paid for amounts included in the measurement of liabilities
Financing cash flows from finance leases$1,872 $1,693 $1,620 
Operating cash flows from finance leases954 631 614 
Operating cash flows from operating leases108,847 98,416 85,681 
Non-cash supplemental amounts
ROU assets obtained in exchange for new finance lease liabilities2,319 7,896 594 
ROU assets obtained in exchange for new operating lease liabilities166,028 72,219 64,567 
ROU assets terminated in exchange for release from finance lease liabilities— — — 
ROU assets terminated in exchange for release from operating lease liabilities41 1,439 32,902 
The table below includes the estimated future undiscounted cash flows for finance and operating leases as of December 31, 2024 (in thousands):
For the year ending December 31, Finance leasesOperating leasesTotal
2025$3,148 $110,372 $113,520 
20262,643 109,666 112,309 
20272,492 100,115 102,607 
20281,669 91,862 93,531 
20291,293 18,471 19,764 
Thereafter8,657 122,268 130,925 
Total lease payments19,902 552,754 572,656 
Less amount representing interest(5,960)(110,488)(116,448)
Present value of lease liabilities$13,942 $442,266 $456,208 
Additionally, we have no future undiscounted cash flows for operating leases or finance leases that have not yet commenced.
Leases Leases
We have cancellable and non-cancellable finance and operating lease liabilities for the lease of land, vehicles, office space, retail facilities, and other facilities used in the storage and transportation of crude oil and refined products. Most of our leases include one or more options to renew, with renewal terms that can extend the lease term from one to 30 years or more. There are no material residual value guarantees associated with any of our leases.
The following table provides information on the amounts (in thousands, except lease term and discount rates) of our ROU assets and liabilities, weighted average remaining lease term, and weighted average discount rate as of December 31, 2024 and 2023, and their placement within our consolidated balance sheets:
Lease typeBalance Sheet LocationDecember 31, 2024December 31, 2023
Assets
FinanceProperty, plant, and equipment$30,655 $28,264 
FinanceAccumulated amortization(14,543)(12,212)
FinanceProperty, plant, and equipment, net16,112 16,052 
OperatingOperating lease right-of-use assets428,120 346,454 
Total right-of-use assets$444,232 $362,506 
Liabilities
Current
FinanceOther accrued liabilities$2,252 $1,820 
OperatingOperating lease liabilities80,174 72,833 
Long-term
FinanceFinance lease liabilities11,690 12,438 
OperatingOperating lease liabilities362,092 282,517 
Total lease liabilities$456,208 $369,608 
Weighted-average remaining lease term (in years)
Finance10.2611.02
Operating7.178.67
Weighted-average discount rate
Finance6.97 %8.04 %
Operating7.76 %7.24 %
The following table summarizes the lease costs recognized in our consolidated statements of operations (in thousands):
Year Ended December 31,
Lease cost type202420232022
Finance lease cost
Amortization of finance lease ROU assets$2,335 $1,906 $1,917 
Interest on lease liabilities987 636 619 
Operating lease cost112,850 98,928 89,591 
Variable lease cost7,197 9,246 5,478 
Short-term lease cost4,183 13,500 8,575 
Net lease cost$127,552 $124,216 $106,180 
Operating lease income (1)$(6,011)$(14,908)$(11,030)
_________________________________________________________
(1)At December 31, 2024 and 2023, Property, plant, and equipment, net associated with leased assets was approximately $4.8 million and $9.5 million, respectively. The majority of our lessor income comes from leases with lease terms of one year or less and the estimated future undiscounted cash flows from lessor income are not expected to be material.
The following table summarizes the supplemental cash flow information related to leases as follows (in thousands):
Year Ended December 31,
Lease type202420232022
Cash paid for amounts included in the measurement of liabilities
Financing cash flows from finance leases$1,872 $1,693 $1,620 
Operating cash flows from finance leases954 631 614 
Operating cash flows from operating leases108,847 98,416 85,681 
Non-cash supplemental amounts
ROU assets obtained in exchange for new finance lease liabilities2,319 7,896 594 
ROU assets obtained in exchange for new operating lease liabilities166,028 72,219 64,567 
ROU assets terminated in exchange for release from finance lease liabilities— — — 
ROU assets terminated in exchange for release from operating lease liabilities41 1,439 32,902 
The table below includes the estimated future undiscounted cash flows for finance and operating leases as of December 31, 2024 (in thousands):
For the year ending December 31, Finance leasesOperating leasesTotal
2025$3,148 $110,372 $113,520 
20262,643 109,666 112,309 
20272,492 100,115 102,607 
20281,669 91,862 93,531 
20291,293 18,471 19,764 
Thereafter8,657 122,268 130,925 
Total lease payments19,902 552,754 572,656 
Less amount representing interest(5,960)(110,488)(116,448)
Present value of lease liabilities$13,942 $442,266 $456,208 
Additionally, we have no future undiscounted cash flows for operating leases or finance leases that have not yet commenced.