v3.26.1
Joint Venture
 6 Months Ended
Jun. 30, 2026
Equity Method Investments and Joint Ventures [Abstract]  
Joint Venture Refining and Logistics Equity Investments
Yellowstone Energy Limited Partnership
As of June 30, 2026, 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. The change in our equity investment in YELP is as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Beginning balance$70,294 $62,456 $69,740 $57,167 
Equity earnings from YELP5,125 5,842 8,850 11,479 
Amortization of basis difference
(348)(348)(696)(696)
Dividends received— — (2,823)— 
Ending balance$75,071 $67,950 $75,071 $67,950 
Yellowstone Pipeline Company
As of June 30, 2026, 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. The change in our equity investment in YPLC is as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Beginning balance$31,366 $31,369 $28,914 $29,144 
Equity earnings from YPLC2,652 1,773 5,066 3,960 
Accretion of basis difference39 38 77 76 
Dividends received— (5,840)— (5,840)
Ending balance$34,057 $27,340 $34,057 $27,340 
Investment in Laramie Energy
As of June 30, 2026, we owned a 46% 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 $43.3 million and $35.8 million as of June 30, 2026, and December 31, 2025, respectively.
As of June 30, 2026, and December 31, 2025, Laramie Energy’s term loan had an outstanding balance of $160.0 million.
At June 30, 2026, our equity in the underlying net assets of Laramie Energy exceeded the carrying value of our investment by approximately $56.0 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,
2026202520262025
Beginning balance$44,985 $13,224 $35,806 $12,498 
Equity earnings (losses) from Laramie Energy(3,072)242 4,701 (646)
Accretion of basis difference1,406 1,614 2,812 3,228 
Ending balance
$43,319 $15,080 $43,319 $15,080 
Joint Venture
Renewable Fuels Facility Joint Venture
As of June 30, 2026, we held a 63.5% ownership interest in Hawaii Renewables and Alohi Renewable Energy LLC (“Alohi”), an entity owned by Mitsubishi Corporation and ENEOS Corporation, held the remaining 36.5% ownership interest. The joint venture was formed for the development, construction, ownership, and operation of the new renewables fuels manufacturing facility co-located with our Hawaii refinery (“Renewable Fuels Facility”). The Renewable Fuels Facility began commercial operations in April 2026.
The economic interest held by Alohi is recorded as a noncontrolling interest on our condensed consolidated balance sheets. Hawaii Renewables’ net income or loss is reflected in our refining segment on our condensed consolidated statements of operations.
Noncontrolling Interest
No accretion was recorded for the three and six months ended June 30, 2026. We do not consider any of the put or exit rights described in the Equity Contribution Agreement executed by the Company and Alohi on July 21, 2025, to be probable as of June 30, 2026, as Alohi has not exercised or indicated its intent to exercise its put option and none of the contingent events have occurred.