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Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
In accordance with ASC 820, the Company uses a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. Observable inputs are from sources independent of the Company. Unobservable inputs reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. These tiers include the following:
•Level 1 — inputs include observable unadjusted quoted prices in active markets for identical assets or liabilities
•Level 2 — inputs include other than quoted prices in active markets that are either directly or indirectly observable
•Level 3 — inputs include unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions
In determining fair value, the Company uses various valuation techniques and prioritizes the use of observable inputs. The availability of observable inputs varies from instrument to instrument and depends on a variety of factors including the type of instrument, whether the instrument is actively traded and other characteristics particular to the instrument. For many financial instruments, pricing inputs are readily observable in the market, the valuation methodology used is widely accepted by market participants and the valuation does not require significant management judgment. For other financial instruments, pricing inputs are less observable in the marketplace and may require management judgment.
Recurring Fair Value Measurements
There have been no material changes in our derivative assets and liabilities measurements, pension assets, liability awards, and precious metals obligations from those previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
Hierarchy of Recurring Fair Value Measurements
The Company’s recurring assets and liabilities measured at fair value were as follows (in millions):
June 30, 2026December 31, 2025
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets:
Derivative assets:
Crack spread swaps$— $— $— $— $— $— $6.7 $6.7 
Inventory financing obligation— — — — — — 23.1 23.1 
Total derivative assets— — — — — — 29.8 29.8 
Pension plan investments3.3 23.0 — 26.3 3.3 22.9 — 26.2 
Other1.0 3.6 — 4.6 0.8 2.3 — 3.1 
Total recurring assets at fair value$4.3 $26.6 $— $30.9 $4.1 $25.2 $29.8 $59.1 
Liabilities:
Derivative liabilities:
Crack spread swaps$— $— $(64.9)$(64.9)$— $— $— $— 
Inventory financing obligation— — (0.4)(0.4)— — — — 
Total derivative liabilities— — (65.3)(65.3)— — — — 
Liability awards(74.0)— — (74.0)(43.1)— — (43.1)
Total recurring liabilities at fair value$(74.0)$— $(65.3)$(139.3)$(43.1)$— $— $(43.1)
The table below sets forth a summary of net changes in fair value of the Company’s Level 3 financial assets and liabilities (in millions):
For the Six Months Ended June 30,
20262025
Fair value at January 1,$29.8 $5.7 
Realized loss on derivative instruments(47.7)(10.0)
Unrealized gain (loss) on derivative instruments(93.7)7.1 
Settlements46.3 9.1 
Fair value at June 30,$(65.3)$11.9 
Total gain (loss) included in net income (loss) attributable to changes in unrealized gain (loss) relating to financial assets and liabilities held as of June 30,$(93.7)$7.1 
Nonrecurring Fair Value Measurements
Certain non-financial assets and liabilities are measured at fair value on a nonrecurring basis and are subject to fair value adjustments in certain circumstances.
Estimated Fair Value of Financial Instruments
Cash, cash equivalents and restricted cash
The carrying value of cash, cash equivalents and restricted cash are each considered to be representative of their fair value.
Debt
The estimated fair value of long-term debt at June 30, 2026 and December 31, 2025, consists primarily of senior notes. The estimated fair value of the Company’s 2026 Notes, 2027 Notes, 2028 Notes, 2028 Mirror Issuance Notes, 2029 Secured Notes, and 2031 Notes defined as Level 2 was based upon quoted prices for identical or similar liabilities in markets that are not active. The fair value of borrowings under the Company's senior secured revolving credit facility, DOE Loan, Shreveport terminal asset financing arrangement, Montana terminal asset financing arrangement, Montana refinery asset financing arrangement, and finance lease obligations is classified as Level 3 within the fair value hierarchy due to the absence of observable market quotations for these instruments. Fair value estimates for these obligations are based on valuation techniques that incorporate significant unobservable inputs, including assumptions regarding market interest rates for comparable debt instruments, credit spreads, remaining contractual terms and other factors specific to the underlying arrangements. The carrying value of these obligations is considered a reasonable approximation of fair value due to the variable-rate nature of the indebtedness or because the financing arrangements approximate market terms based on the Company's ability to borrow for similar arrangements at the time of valuation. Refer to Note 6, Long-Term Debt, for additional information regarding the Company's debt obligations.
The Company’s carrying value and estimated fair value of the Company’s Senior Notes, were as follows (in millions):
June 30, 2026December 31, 2025
LevelFair ValueCarrying ValueFair ValueCarrying Value
2026 Notes, 2027 Notes, 2028 Notes, 2028 Mirror Issuance Notes, 2029 Secured Notes and 2031 Notes2$1,225.8 $1,167.0 1,083.7 $1,065.5