v3.25.2
Derivatives
 6 Months Ended
Jun. 30, 2025
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 12—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 October 2026. At June 30, 2025, our open commodity derivative contracts represented (in thousands of barrels):
Contract TypePurchasesSalesNet
Futures2,170 (2,595)(425)
Swaps105,583 (133,973)(28,390)
Total107,753 (136,568)(28,815)
At June 30, 2025, 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 June 30, 2025:
20252026
Total open option collars1,1641,620
Weighted-average strike price - floor (in dollars)$53.74$45.16
Weighted-average strike price - ceiling (in dollars)$82.91$82.96
Earliest commencement dateJuly 2025January 2026
Furthest expiry dateDecember 2025December 2026
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 reduces variable interest rate risk from May 31, 2023, through May 31, 2026, with a notional amount of $300.0 million as of June 30, 2025. 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.
During the three months ended June 30, 2025, we entered into five additional interest rate collar transactions to reduce our variable interest rate risk related to the Term Loan Credit Agreement. These agreements are effective from May 31, 2026, through May 31, 2029, with a total notional amount of $250.0 million as of June 30, 2025. The terms of the agreements provide for an average interest rate cap of 5.50% and an average floor of 2.08%, based on the three month SOFR as of the fixing date. These transactions expire on May 31, 2029. The following table provides information on the fair value amounts (in thousands) of these derivatives as of June 30, 2025, and December 31, 2024, and their placement within our condensed consolidated balance sheets.
Balance Sheet LocationJune 30, 2025December 31, 2024
Asset (Liability)
Commodity derivatives (1)Prepaid and other current assets$40,564 $10,591 
Commodity derivatives (1)Other long-term assets(1,614)— 
Commodity derivatives (2)
Other accrued liabilities(3,361)(13,456)
Citi repurchase obligation derivative
Obligations under inventory financing agreements(3,678)(1,588)
Interest rate derivativesOther liabilities(758)(24)
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(1)Does not include cash collateral of $9.6 million and $38.6 million recorded in Prepaid and other current assets as of June 30, 2025, and December 31, 2024, respectively. Does not include $2.0 million and $2.3 million recorded in Prepaid and other current assets as of June 30, 2025, and December 31, 2024, respectively, related to realized derivatives receivable.
(2)Does not include $66.9 million and $6.1 million recorded in Other accrued liabilities as of June 30, 2025, and December 31, 2024, respectively, related to realized derivatives payable.
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 Location2025202420252024
Commodity derivativesCost of revenues (excluding depreciation)$32,535 $(10,567)$41,922 $(37,297)
J. Aron repurchase obligation derivativeCost of revenues (excluding depreciation)— 22,869 — 1,053 
Citi repurchase obligation derivative
Cost of revenues (excluding depreciation)1,458 (409)(2,090)(409)
Interest rate derivativesInterest expense and financing costs, net(649)37 (734)881