Leases

6 Months Ended

Jun. 30, 2026

We have cancellable and non-cancellable finance and operating lease liabilities for the lease of land, vehicles, office space, retail facilities, and other facilities used in the storage and transportation of crude oil and refined products. Most of our leases include one or more options to renew, with renewal terms that can extend the lease term from one to 30 years or more. There are no material residual value guarantees associated with any of our leases.

The following table provides information on the amounts (in thousands) of our right-of-use assets (“ROU assets”) and liabilities, weighted-average remaining lease terms, and weighted average discount rates as of June 30, 2026, and December 31, 2025, and their placement within our condensed consolidated balance sheets:


Lease type	Balance Sheet Location	June 30, 2026			December 31, 2025
Assets

Finance	Property, plant, and equipment	$	32,380		$	33,557
Finance	Accumulated amortization	(17,308)			(17,185)
Finance	Property, plant, and equipment, net	15,072			16,372
Operating	Operating lease right-of-use (“ROU”) assets	361,234			391,395
Total right-of-use assets		$	376,306		$	407,767

Liabilities
Current
Finance	Other accrued liabilities	$	2,289		$	2,303
Operating	Operating lease liabilities	110,005			99,558
Long-term
Finance	Finance lease liabilities	10,842			12,002
Operating	Operating lease liabilities	271,689			312,450
Total lease liabilities		$	394,825		$	426,313

Weighted-average remaining lease term (in years)
Finance		9.90			9.89
Operating		6.58			6.58
Weighted-average discount rate
Finance		6.87		%	6.89		%
Operating		7.39		%	7.62		%

The following table summarizes the lease costs and income recognized in our condensed consolidated statements of operations (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
Lease cost (income) type	2026		2025		2026		2025
Finance lease cost
Amortization of finance lease ROU assets	$	633	$	637	$	1,302	$	1,322
Interest on lease liabilities	228		234		465		472
Operating lease cost	34,039		31,450		65,569		63,039
Variable lease cost	3,165		3,069		6,137		6,077
Short-term lease cost	1,906		2,232		3,018		4,501
Net lease cost	$	39,971	$	37,622	$	76,491	$	75,411

Operating lease income (1)	$	(578)	$	(555)	$	(1,194)	$	(1,129)

_________________________________________________________

(1)The majority of our lessor income comes from leases with lease terms of one year or less and the estimated future undiscounted cash flows from lessor income are not expected to be material.

The following table summarizes the supplemental cash flow information related to leases as follows (in thousands):


	Six Months Ended June 30,
Lease type	2026		2025
Cash paid for amounts included in the measurement of liabilities
Financing cash flows from finance leases	$	1,257	$	1,116
Operating cash flows from finance leases	466		472
Operating cash flows from operating leases	65,484		59,207
Non-cash supplemental amounts
ROU assets obtained in exchange for new finance lease liabilities	—		471
ROU assets obtained in exchange for new operating lease liabilities	24,245		52,634

ROU assets terminated in exchange for release from operating lease liabilities	4,267		23

The table below includes the estimated future undiscounted cash flows for finance and operating leases as of June 30, 2026 (in thousands):


For the year ending December 31,	Finance leases		Operating leases		Total
2026 (1)	$	1,359	$	70,761	$	72,120
2027	3,022		122,238		125,260
2028	2,117		100,949		103,066
2029	1,712		25,321		27,033
2030	1,163		18,898		20,061
2031	1,079		15,324		16,403
Thereafter	7,613		107,332		114,945
Total lease payments	18,065		460,823		478,888
Less amount representing interest	(5,133)		(78,930)		(84,063)
Present value of lease liabilities	$	12,932	$	381,893	$	394,825

_________________________________________________________

(1)Represents the period from July 1, 2026, to December 31, 2026.

Additionally, we have $1.4 million future undiscounted cash flows for operating leases and no future undiscounted cash flows for finance leases that have not yet commenced. The lease will commence when the asset is made available for our use.

Leases


Lease type	Balance Sheet Location	June 30, 2026			December 31, 2025
Assets

Finance	Property, plant, and equipment	$	32,380		$	33,557
Finance	Accumulated amortization	(17,308)			(17,185)
Finance	Property, plant, and equipment, net	15,072			16,372
Operating	Operating lease right-of-use (“ROU”) assets	361,234			391,395
Total right-of-use assets		$	376,306		$	407,767

Liabilities
Current
Finance	Other accrued liabilities	$	2,289		$	2,303
Operating	Operating lease liabilities	110,005			99,558
Long-term
Finance	Finance lease liabilities	10,842			12,002
Operating	Operating lease liabilities	271,689			312,450
Total lease liabilities		$	394,825		$	426,313

Weighted-average remaining lease term (in years)
Finance		9.90			9.89
Operating		6.58			6.58
Weighted-average discount rate
Finance		6.87		%	6.89		%
Operating		7.39		%	7.62		%

The following table summarizes the lease costs and income recognized in our condensed consolidated statements of operations (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
Lease cost (income) type	2026		2025		2026		2025
Finance lease cost
Amortization of finance lease ROU assets	$	633	$	637	$	1,302	$	1,322
Interest on lease liabilities	228		234		465		472
Operating lease cost	34,039		31,450		65,569		63,039
Variable lease cost	3,165		3,069		6,137		6,077
Short-term lease cost	1,906		2,232		3,018		4,501
Net lease cost	$	39,971	$	37,622	$	76,491	$	75,411

Operating lease income (1)	$	(578)	$	(555)	$	(1,194)	$	(1,129)

_________________________________________________________

(1)The majority of our lessor income comes from leases with lease terms of one year or less and the estimated future undiscounted cash flows from lessor income are not expected to be material.

The following table summarizes the supplemental cash flow information related to leases as follows (in thousands):


	Six Months Ended June 30,
Lease type	2026		2025
Cash paid for amounts included in the measurement of liabilities
Financing cash flows from finance leases	$	1,257	$	1,116
Operating cash flows from finance leases	466		472
Operating cash flows from operating leases	65,484		59,207
Non-cash supplemental amounts
ROU assets obtained in exchange for new finance lease liabilities	—		471
ROU assets obtained in exchange for new operating lease liabilities	24,245		52,634

ROU assets terminated in exchange for release from operating lease liabilities	4,267		23

The table below includes the estimated future undiscounted cash flows for finance and operating leases as of June 30, 2026 (in thousands):


For the year ending December 31,	Finance leases		Operating leases		Total
2026 (1)	$	1,359	$	70,761	$	72,120
2027	3,022		122,238		125,260
2028	2,117		100,949		103,066
2029	1,712		25,321		27,033
2030	1,163		18,898		20,061
2031	1,079		15,324		16,403
Thereafter	7,613		107,332		114,945
Total lease payments	18,065		460,823		478,888
Less amount representing interest	(5,133)		(78,930)		(84,063)
Present value of lease liabilities	$	12,932	$	381,893	$	394,825

_________________________________________________________

(1)Represents the period from July 1, 2026, to December 31, 2026.