Product Sales Revenues

6 Months Ended

Jun. 30, 2017

Product Sales Revenue

The amounts reported as product sales revenue on our consolidated statements of income include revenue from the physical sale of petroleum products and mark-to-market adjustments from exchange-based futures contracts. See Note 8 – Derivative Financial Instruments for a discussion of our commodity hedging strategies and how our futures contracts impact product sales revenue. All of the petroleum products inventory we physically sell associated with our butane blending and fractionation activities, as well as the barrels from product gains we obtain from our operations, including tender deductions, are reported as product sales revenue on our consolidated statements of income.

For the three and six months ended June 30, 2016 and 2017, product sales revenue included the following (in thousands):



	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2016			2017		2016		2017
Physical sale of petroleum products	$	135,459		$	167,790	$	266,039	$	384,730
Change in value of futures contracts	(11,770		)	14,214		4,212		42,894
Total product sales revenue	$	123,689		$	182,004	$	270,251	$	427,624