| Revenues and Segment Reporting Disclosure [Text Block] |
| (4) |
Revenue and Segment Information |
We have two reportable business segments: (i) refinery operations, which derives revenue from refined product sales, and (ii) tolling and terminaling, which derives revenue from storage tank rental fees, ancillary services fees (such as for in-tank blending) and tolling and reservation fees for use of the naphtha stabilizer at the Nixon refinery. ‘Corporate and other’ as presented in the segment information includes BDSC, BDPL, and BDPC.
Revenue from Contracts with Customers
Disaggregation of Revenue. We present revenue in the table below under ‘Segment Information’ separated by business segment because management believes this presentation benefits users of our financial information.
Receivables from Contracts with Customers. We present accounts receivable from contracts with customers as accounts receivable, net on our consolidated balance sheets.
Contract Liabilities. Our contract liabilities consist of unearned revenue from customers through prepayments. We include unearned revenue in accrued expenses and other current liabilities on our consolidated balance sheets. See “Note (9)” for more information related to unearned revenue.
Remaining Performance Obligations. Most of our customer contracts are settled immediately and have no remaining performance obligations.
Contract Balances
Revenue recognized for the twelve months ended December 31, 2023 and 2022 that was included in the contract liability balances at the beginning of each year was $1.1 million and $0.5 million, respectively.
| |
|
December 31, |
|
| |
|
2023 |
|
|
2022 |
|
| Accounts receivable (including related-party), beginning of year |
|
$ |
1,148 |
|
|
$ |
126 |
|
| Accounts receivable (including related-party), end of year |
|
|
4,300 |
|
|
|
1,148 |
|
| |
|
|
|
|
|
|
|
|
| Unearned revenue, beginning of year |
|
$ |
3,888 |
|
|
$ |
4,388 |
|
| Unearned revenue, end of year |
|
|
3,243 |
|
|
|
3,888 |
|
Segment Information
Business segment information for the periods indicated (and as of the dates indicated) was as follows:
| |
|
Twelve Months Ended |
|
| |
|
December 31, |
|
| |
|
2023 |
|
|
2022 |
|
| |
|
(in thousands) |
|
| |
|
|
|
|
|
|
|
|
| Refinery operations |
|
$ |
390,016 |
|
|
$ |
483,061 |
|
| Tolling and terminaling |
|
|
6,032 |
|
|
|
4,443 |
|
| Total revenue from operations |
|
|
396,048 |
|
|
|
487,504 |
|
| |
|
|
|
|
|
|
|
|
| Intercompany processing fees(1) |
|
|
|
|
|
|
|
|
| Refinery operations |
|
|
(2,590 |
) |
|
|
(2,583 |
) |
| Tolling and terminaling |
|
|
2,590 |
|
|
|
2,583 |
|
| Total intercompany processing fees |
|
|
- |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
| Operation costs and expenses(2) |
|
|
|
|
|
|
|
|
| Refinery operations |
|
|
(349,737 |
) |
|
|
(439,291 |
) |
| Tolling and terminaling |
|
|
(1,633 |
) |
|
|
(2,142 |
) |
| Corporate and other |
|
|
(208 |
) |
|
|
(221 |
) |
| Total operation costs and expenses |
|
|
(351,578 |
) |
|
|
(441,654 |
) |
| |
|
|
|
|
|
|
|
|
| Gross profit |
|
|
|
|
|
|
|
|
| Refinery operations |
|
|
37,689 |
|
|
|
41,187 |
|
| Tolling and terminaling |
|
|
6,989 |
|
|
|
4,884 |
|
| Total gross profit |
|
|
44,678 |
|
|
|
46,071 |
|
| |
|
|
|
|
|
|
|
|
| Other operating and general and administrative expenses(3) |
|
|
|
|
|
|
|
|
| Refinery operations |
|
|
(1,638 |
) |
|
|
(1,682 |
) |
| Tolling and terminaling |
|
|
(87 |
) |
|
|
(427 |
) |
| Corporate and other |
|
|
(3,767 |
) |
|
|
(2,081 |
) |
| Total other operating and general and administrative expenses |
|
|
(5,492 |
) |
|
|
(4,190 |
) |
| |
|
|
|
|
|
|
|
|
| Depreciation and amortization |
|
|
|
|
|
|
|
|
| Refinery operations |
|
|
(1,211 |
) |
|
|
(1,224 |
) |
| Tolling and terminaling |
|
|
(1,368 |
) |
|
|
(1,368 |
) |
| Corporate and other |
|
|
(219 |
) |
|
|
(206 |
) |
| Total depreciation and amortization |
|
|
(2,798 |
) |
|
|
(2,798 |
) |
| |
|
|
|
|
|
|
|
|
| Interest and other non-operating expenses, net |
|
|
|
|
|
|
|
|
| Refinery operations |
|
|
(3,130 |
) |
|
|
(2,753 |
) |
| Tolling and terminaling |
|
|
(1,964 |
) |
|
|
(1,433 |
) |
| Corporate and other |
|
|
(768 |
) |
|
|
(1,698 |
) |
| Total interest and other non-operating expenses, net |
|
|
(5,862 |
) |
|
|
(5,884 |
) |
| |
|
|
|
|
|
|
|
|
| Income before income taxes |
|
|
|
|
|
|
|
|
| Refinery operations |
|
|
31,710 |
|
|
|
35,528 |
|
| Tolling and terminaling |
|
|
3,570 |
|
|
|
1,656 |
|
| Corporate and other |
|
|
(4,754 |
) |
|
|
(3,985 |
) |
| Total income before income taxes |
|
|
30,526 |
|
|
|
33,199 |
|
| |
|
|
|
|
|
|
|
|
| Income tax expense |
|
|
485 |
|
|
|
(307 |
) |
| |
|
|
|
|
|
|
|
|
| Net income |
|
$ |
31,011 |
|
|
$ |
32,892 |
|
| (1) |
Fees associated with an intercompany tolling agreement related to naphtha volumes. |
| (2) |
Cost of goods sold within tolling and terminaling includes terminal operating expenses and an allocation of other costs (e.g., insurance and maintenance). |
| (3) |
General and administrative expenses within refinery operations includes the LEH operating fee, related party, other operating expenses, and accretion of asset retirement obligations. |
| |
|
Twelve Months Ended |
|
| |
|
December 31, |
|
| |
|
2023 |
|
|
2022 |
|
| |
|
(in thousands) |
|
| Capital expenditures |
|
|
|
|
|
|
|
|
| Refinery operations |
|
$ |
102 |
|
|
$ |
102 |
|
| Tolling and terminaling |
|
|
- |
|
|
|
- |
|
| Corporate and other |
|
|
- |
|
|
|
- |
|
| Total capital expenditures |
|
$ |
102 |
|
|
$ |
102 |
|
| |
|
December 31, |
|
| |
|
2023 |
|
|
2022 |
|
| |
|
(in thousands) |
|
| Identifiable assets |
|
|
|
|
|
|
|
|
| Refinery operations |
|
$ |
86,565 |
|
|
$ |
64,359 |
|
| Tolling and terminaling |
|
|
16,464 |
|
|
|
17,836 |
|
| Corporate and other |
|
|
3,048 |
|
|
|
1,709 |
|
| Total identifiable assets |
|
$ |
106,077 |
|
|
$ |
83,904 |
|
|