v3.26.1
Derivatives
 6 Months Ended
Jun. 30, 2026
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 13—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 by December 2027. At June 30, 2026, our open commodity derivative contracts represented (in thousands of barrels):
Contract TypePurchasesSalesNet
Futures150 (205)(55)
Swaps83,459 (89,659)(6,200)
Total83,609 (89,864)(6,255)
At June 30, 2026, 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 as of June 30, 2026:
2026
Total open option collars1,140
Weighted-average strike price - floor (in dollars)$45.30
Weighted-average strike price - ceiling (in dollars)$82.54
Earliest commencement dateApril 2026
Furthest expiry dateDecember 2026
Environmental Credit Derivatives
At June 30, 2026, our open environmental credit derivative contracts represented one hundred eighty thousand credits.
Interest Rate Derivatives
We are exposed to interest rate volatility in our ABL Credit Facility due 2031 and the Inventory Intermediation Agreement. We may utilize interest rate swaps to manage our interest rate risk.
The following table provides information on the fair value amounts (in thousands) of our derivatives as of June 30, 2026, and December 31, 2025, and their placement within our condensed consolidated balance sheets.
Balance Sheet LocationJune 30, 2026December 31, 2025
Asset (Liability)
Commodity derivatives (1)Prepaid and other current assets$9,934 $21,588 
Environmental credit derivatives (1)Prepaid and other current assets— 1,380 
Commodity derivatives (1)Other long-term assets— 1,295 
Commodity derivatives (2)
Other accrued liabilities(33,599)(944)
Commodity derivativesOther liabilities1,886 — 
Environmental credit derivatives
Other accrued liabilities(2,457)— 
Citi repurchase obligation derivative
Obligations under inventory financing agreements5,902 3,289 
Wells Fargo terminal obligation derivative
Obligations under inventory financing agreements2,046 517 
Interest rate derivativesOther long-term assets254 — 
Interest rate derivativesOther liabilities— (380)
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(1)Does not include cash collateral of $4.3 million and $7.0 million recorded in Prepaid and other current assets as of June 30, 2026, and December 31, 2025, respectively. Does not include $229.0 million and $9.2 million recorded in Prepaid and other current assets as of June 30, 2026, and December 31, 2025, respectively, related to realized derivatives receivable.
(2)Does not include $12.8 million recorded in Other accrued liabilities as of December 31, 2025, related to realized derivatives payable. There were no realized derivatives payables recorded in Other accrued liabilities as of June 30, 2026.
The following table summarizes the pre-tax gains (losses) recognized in Net income (loss) on our condensed consolidated statements of operations resulting from changes in fair value of derivative instruments not designated as hedges charged directly to earnings (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
Statement of Operations Location2026202520262025
Commodity derivativesCost of revenues (excluding depreciation)$(11,612)$32,535 $(64,118)$41,922 
Environmental credit derivatives Cost of revenues (excluding depreciation)(2,457)— (2,817)— 
Citi repurchase obligation derivative
Cost of revenues (excluding depreciation)24,028 1,458 2,613 (2,090)
Wells Fargo terminal obligation derivative
Cost of revenues (excluding depreciation)3,036 — 1,529 — 
Interest rate derivativesInterest expense and financing costs, net602 (649)634 (734)