v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Gross Environmental Credit Obligations
As of June 30, 2026, the U.S. Environmental Protection Agency (“EPA”) has not made a determination with respect to small refinery exemptions for the 2025 compliance year. Accordingly, our recorded RFS obligation for the six months ended
June 30, 2026, reflects 100% of the RFS obligation for the respective period with no assumption of SRE relief. Please read “Note 15—Commitments and Contingencies” for further information on the EPA regulations related to greenhouse gases.
Financial Statement Impact
Fair value amounts by hierarchy level as of June 30, 2026, and December 31, 2025, are presented gross in the tables below (in thousands):
June 30, 2026
Level 1Level 2Level 3Gross Fair ValueEffect of Counter-Party NettingNet Carrying Value on Balance Sheet (1)
Assets
Commodity and environmental credit derivatives
$2,744 $568,645 $— $571,389 $(561,455)$9,934 
Interest rate derivatives— 254 — 254 — 254 
Total$2,744 $568,899 $— $571,643 $(561,455)$10,188 
Liabilities
Commodity and environmental credit derivatives$(4,662)$(590,963)$— $(595,625)$561,455 $(34,170)
Citi repurchase obligation derivative
— — 5,902 5,902 — 5,902 
Wells Fargo terminal obligation derivative
— 2,046 — 2,046 — 2,046 
Gross environmental credit obligations (2) (3)
— (15,034)— (15,034)— (15,034)
Total liabilities$(4,662)$(603,951)$5,902 $(602,711)$561,455 $(41,256)
December 31, 2025
Level 1Level 2Level 3Gross Fair ValueEffect of Counter-Party NettingNet Carrying Value on Balance Sheet (1)
Assets
Commodity and environmental credit derivatives
$2,439 $422,235 $— $424,674 $(400,411)$24,263 
Liabilities
Commodity derivatives$(1,833)$(399,522)$— $(401,355)$400,411 $(944)
Citi repurchase obligation derivative— — 3,289 3,289 — 3,289 
Wells Fargo terminal obligation derivative
— 517 — 517 — 517 
Interest rate derivatives— (380)— (380)— (380)
Gross environmental credit obligations (2) (3)
— (23,679)— (23,679)— (23,679)
Total liabilities$(1,833)$(423,064)$3,289 $(421,608)$400,411 $(21,197)
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(1)Does not include cash collateral of $4.3 million and $7.0 million as of June 30, 2026, and December 31, 2025, respectively, included within Prepaid and other current assets on our condensed consolidated balance sheets, respectively.
(2)Does not include RINs assets and other environmental credits of $364.9 million and $450.7 million presented in Inventories on our condensed consolidated balance sheet and stated at the lower of cost and net realizable value as of June 30, 2026, and December 31, 2025, respectively.
(3)Does not include environmental liabilities of $361.6 million and $356.7 million satisfied by internally generated or purchased environmental credits and presented at the carrying value of these credits included in Other Accrued Liabilities on our condensed consolidated balance sheets as of June 30, 2026, and December 31, 2025, respectively.
A roll forward of Level 3 derivative instruments measured at fair value on a recurring basis is as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Balance, at beginning of period$(18,127)$(5,136)$3,289 $(1,588)
Settlements— — — — 
Total gains (losses) included in earnings (1)24,029 1,458 2,613 (2,090)
Balance, at end of period$5,902 $(3,678)$5,902 $(3,678)
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(1)Included in Cost of revenues (excluding depreciation) on our condensed consolidated statements of operations.
The carrying value and fair value of long-term debt and other financial instruments as of June 30, 2026, and December 31, 2025, are as follows (in thousands):
June 30, 2026
Carrying ValueFair Value
ABL Credit Facility due 2031 (1)
$243,000 $243,000 
Term Loan Credit Agreement due 2030 (2)
— — 
Senior Notes due 2034 (2)490,506 505,625 
Other long-term debt (2)
5,692 5,605 
December 31, 2025
Carrying ValueFair Value
ABL Credit Facility due 2031 (1)
$175,000 $175,000 
Term Loan Credit Agreement due 2030 (2)
621,665 633,625 
Senior Notes due 2034 (2)— — 
Other long-term debt (2)6,205 6,310 
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(1)The fair value measurements of the ABL Credit Facility due 2031 are considered Level 3 measurements in the fair value hierarchy. The ABL Credit Facility due 2031 amended and restated the prior ABL Credit Facility in its entirety on May 14, 2026. Balances and activity prior to the amendment date reflect the prior ABL Credit Facility
(2)The fair value measurements of the Term Loan Credit Agreement, Senior Notes due 2034 and Other long-term debt are considered Level 2 measurements in the fair value hierarchy as discussed below.
The fair values of the Term Loan Credit Agreement, Senior Notes due 2034 and Other long-term debt were determined using a market approach based on quoted prices and the inputs used to measure the fair value are classified as Level 2 inputs within the fair value hierarchy.
The carrying value of our ABL Credit Facility due 2031, Renewables LC Facility and Product Financing Agreement were determined to approximate fair value as of June 30, 2026. The fair value of all non-derivative financial instruments recorded in current assets, including cash and cash equivalents, restricted cash, and trade accounts receivable, and current liabilities, including accounts payable, approximate their carrying value due to their short-term nature.