v3.26.1
Derivative Instruments and Hedging Activities
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities Disclosure Derivatives
Our subsidiaries hold working inventories of refined petroleum products, renewable fuels, gasoline blendstocks and transmix in storage. While in storage, volatility in the market price of stored motor fuel could adversely impact the price at which we can later sell the motor fuel. However, we may use futures, forwards and other derivative instruments (collectively, “positions”) to hedge a variety of price risks relating to deviations in that inventory from a target base operating level established by management. Derivative instruments utilized consist primarily of exchange-traded futures contracts traded on the New York Mercantile Exchange, Chicago Mercantile Exchange and Intercontinental Exchange, as well as over-the-counter transactions (including swap agreements) entered into with established financial institutions and other credit-approved energy companies. While these derivative instruments represent economic hedges, they are not designated as hedges for accounting purposes. We may also engage in controlled trading in accordance with specific parameters set forth in a written risk management policy.
On a consolidated basis, the Partnership had derivative positions on 6.9 million barrels with an aggregate unrealized gain of $63 million at June 30, 2026.
The following table summarizes the location and amounts recognized in our consolidated statements of operations with respect to our derivative financial instruments:
Location of Gain (Loss) Recognized on Income on Derivatives
Amount of Gain (Loss) Recognized in Income on Derivatives
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Derivatives not designated as hedging instruments:
Commodity derivativesCost of sales$(85)$14 $3 $28 
Interest rate derivativesOther, net2 — 2 — 
Total$(83)$14 $5 $28 
The following table summarizes our interest rate swaps outstanding, none of which were designated as hedges for accounting purposes:
Notional Amount Outstanding
Term
Type (1)
June 30, 2026
December 2030 (2)
Pay an average fixed rate of 2.5095% and receive a floating rate
$126 
(1)Floating rates are based on EURIBOR.
(2)The December 2030 interest rate swap was acquired in conjunction with the Partnership's acquisition of TanQuid in 2026, with a notional amount of €111 million ($126 million).