v3.25.2
Refining and Logistics Equity Investments
 6 Months Ended
Jun. 30, 2025
Equity Method Investments and Joint Ventures [Abstract]  
Refining and Logistics Equity Investments Refining and Logistics Equity Investments
Yellowstone Energy Limited Partnership
As of June 30, 2025, we owned 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 18—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 June 30,Six Months Ended June 30,
2025202420252024
Beginning balance$62,456 $58,676 $57,167 $59,824 
Equity earnings from YELP
5,842 2,290 11,479 6,755 
Amortization of basis difference
(348)(348)(696)(696)
Dividends received— — — (5,265)
Ending balance$67,950 $60,618 $67,950 $60,618 
Yellowstone Pipeline Company
As of June 30, 2025, we owned 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 18—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 June 30,Six Months Ended June 30,
2025202420252024
Beginning balance$31,369 $29,639 $29,144 $27,662 
Equity earnings from YPLC
1,773 1,763 3,960 3,702 
Accretion of basis difference38 38 76 76 
Dividends received(5,840)(3,840)(5,840)(3,840)
Ending balance$27,340 $27,600 $27,340 $27,600 
Investment in Laramie Energy
As of June 30, 2025, 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 $15.1 million and $12.5 million as of June 30, 2025, and December 31, 2024, respectively and is accounted for under the equity method as we have the ability to exert significant influence over, but do not control, its operating and financial policies.
On February 21, 2023, Laramie Energy entered into a 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. The delayed draw commitment expired in August 2024. Under the terms of the 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 June 30, 2025, and December 31, 2024, the term loan had an outstanding balance of $160.0 million.
At June 30, 2025, our equity in the underlying net assets of Laramie Energy exceeded the carrying value of our investment by approximately $61.4 million. This difference arose primarily due to other-than-temporary impairments of our equity investment in Laramie Energy recorded in prior years.
The change in our equity investment in Laramie Energy is as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Beginning balance$13,224 $18,842 $12,498 $14,279 
Equity earnings (losses) from Laramie Energy
242 (2,975)(646)(26)
Accretion of basis difference1,614 1,615 3,228 3,229 
Dividends received— (1,485)— (1,485)
Ending balance
$15,080 $15,997 $15,080 $15,997