| Schedule of notional values of derivative instruments |
The following table summarizes the notional values related to the Partnership’s derivative instruments outstanding at June 30, 2025: | | | | | | | Units (1) | | Unit of Measure | | Exchange-Traded Derivatives | | | | | | Long | | 84,375 | | Thousands of barrels | | Short | | (86,278) | | Thousands of barrels | | | | | | | | OTC Derivatives (Petroleum/Ethanol) | | | | | | Long | | 134,589 | | Thousands of barrels | | Short | | (9,163) | | Thousands of barrels | |
| (1) | Number of open positions and gross notional values do not measure the Partnership’s risk of loss, quantify risk or represent assets or liabilities of the Partnership, but rather indicate the relative size of the derivative instruments and are used in the calculation of the amounts to be exchanged between counterparties upon settlements. |
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| Schedule of net gains and losses from derivatives recognized in consolidated statements of operations |
The following table presents the gains and losses from the Partnership’s derivative instruments involved in fair value hedging relationships recognized in the consolidated statements of operations for the periods presented (in thousands): | | | | | | | | | | | | | | | | | | Location of Gain (Loss) | | Three Months Ended | | Six Months Ended | | | | Recognized in Income on | | June 30, | | June 30, | | | | Derivatives | | 2025 | | 2024 | | 2025 | | 2024 | | Derivatives in fair value hedging relationship | | | | | | | | | | | | | | | | Exchange-traded futures contracts and OTC derivative contracts for petroleum commodity products | | Cost of sales | | $ | 18,503 | | $ | 3,222 | | $ | 21,125 | | $ | 3,394 | | Hedged items in fair value hedge relationship | | | | | | | | | | | | | | | | Physical inventory | | Cost of sales | | $ | (17,810) | | $ | (3,074) | | $ | (24,619) | | $ | (6,605) | |
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| Schedule of the amount of gains and losses from derivatives not involved in a hedging relationship recognized in the consolidated statements of income |
The following table presents the gains and losses from the Partnership’s derivative instruments not involved in a hedging relationship recognized in the consolidated statements of operations for the periods presented (in thousands): | | | | | | | | | | | | | | | | | | Location of Gain (Loss) | | Three Months Ended | | Six Months Ended | | Derivatives not designated as | | Recognized in | | June 30, | | June 30, | | hedging instruments | | Income on Derivatives | | 2025 | | 2024 | | 2025 | | 2024 | | Commodity contracts | | Cost of sales | | $ | 1,525 | | $ | (843) | | $ | (9,942) | | $ | (250) | |
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| Schedule of fair values of derivative instruments and location in consolidated balance sheets |
The following table presents the fair value of each classification of the Partnership’s derivative instruments and its location in the consolidated balance sheets at June 30, 2025 and December 31, 2024 (in thousands): | | | | | | | | | | | | | | | | | June 30, 2025 | | | | | | Derivatives | | Derivatives Not | | | | | | | | | Designated as | | Designated as | | | | | | | | | Hedging | | Hedging | | | | | | | Balance Sheet Location | | Instruments | | Instruments | | Total | | Asset Derivatives: | | | | | | | | | | | | | Exchange-traded derivative contracts | | Broker margin deposits | | $ | 5,649 | | $ | 44,057 | | $ | 49,706 | | Forward derivative contracts (1) | | Derivative assets | | | — | | | 18,182 | | | 18,182 | | Total asset derivatives | | | | $ | 5,649 | | $ | 62,239 | | $ | 67,888 | | | | | | | | | | | | | | | Liability Derivatives: | | | | | | | | | | | | | Exchange-traded derivative contracts | | Broker margin deposits | | $ | — | | $ | (78,354) | | $ | (78,354) | | Forward derivative contracts (1) | | Derivative liabilities | | | — | | | (13,931) | | | (13,931) | | Total liability derivatives | | | | $ | — | | $ | (92,285) | | $ | (92,285) | |
| | | | | | | | | | | | | | | | | December 31, 2024 | | | | | | Derivatives | | Derivatives Not | | | | | | | | | Designated as | | Designated as | | | | | | | | | Hedging | | Hedging | | | | | | | Balance Sheet Location | | Instruments | | Instruments | | Total | | Asset Derivatives: | | | | | | | | | | | | | Exchange-traded derivative contracts | | Broker margin deposits | | $ | (9,355) | | $ | 38,483 | | $ | 29,128 | | Forward derivative contracts (1) | | Derivative assets | | | — | | | 13,710 | | | 13,710 | | Total asset derivatives | | | | $ | (9,355) | | $ | 52,193 | | $ | 42,838 | | | | | | | | | | | | | | | Liability Derivatives: | | | | | | | | | | | | | Exchange-traded derivative contracts | | Broker margin deposits | | $ | — | | $ | (30,936) | | $ | (30,936) | | Forward derivative contracts (1) | | Derivative liabilities | | | — | | | (6,105) | | | (6,105) | | Total liability derivatives | | | | $ | — | | $ | (37,041) | | $ | (37,041) | |
| (1) | Forward derivative contracts include the Partnership’s petroleum and ethanol physical and financial forwards and OTC swaps. |
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