Summary of financial information for the reportable segments |
| | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | | June 30, | | June 30, | | | | 2022 | | 2021 | | 2022 | | 2021 | | Wholesale Segment: | | | | | | | | | | | | | | Sales | | | | | | | | | | | | | | Gasoline and gasoline blendstocks | | $ | 2,002,632 | | $ | 1,505,658 | | $ | 3,422,858 | | $ | 2,325,056 | | Other oils and related products (1) | | | 999,151 | | | 474,909 | | | 2,182 | | | 33,934 | | Crude oil (2) | | | 708 | | | 17,016 | | | 2,355,154 | | | 1,190,078 | | Total | | $ | 3,002,491 | | $ | 1,997,583 | | $ | 5,780,194 | | $ | 3,549,068 | | Product margin | | | | | | | | | | | | | | Gasoline and gasoline blendstocks | | $ | 41,034 | | $ | 23,516 | | $ | 38,749 | | $ | 39,921 | | Other oils and related products (1) | | | 51,852 | | | 13,340 | | | 104,974 | | | 31,955 | | Crude oil (2) | | | (2,311) | | | (3,321) | | | (6,060) | | | (7,848) | | Total | | $ | 90,575 | | $ | 33,535 | | $ | 137,663 | | $ | 64,028 | | Gasoline Distribution and Station Operations Segment: | | | | | | | | | | | | | | Sales | | | | | | | | | | | | | | Gasoline | | $ | 1,813,436 | | $ | 1,023,187 | | $ | 3,090,397 | | $ | 1,779,195 | | Station operations (3) | | | 144,314 | | | 123,162 | | | 260,206 | | | 223,326 | | Total | | $ | 1,957,750 | | $ | 1,146,349 | | $ | 3,350,603 | | $ | 2,002,521 | | Product margin | | | | | | | | | | | | | | Gasoline | | $ | 129,852 | | $ | 101,303 | | $ | 244,738 | | $ | 181,555 | | Station operations (3) | | | 69,008 | | | 61,141 | | | 127,105 | | | 111,298 | | Total | | $ | 198,860 | | $ | 162,444 | | $ | 371,843 | | $ | 292,853 | | Commercial Segment: | | | | | | | | | | | | | | Sales | | $ | 363,409 | | $ | 135,213 | | $ | 693,391 | | $ | 280,883 | | Product margin | | $ | 12,512 | | $ | 2,701 | | $ | 20,653 | | $ | 6,891 | | Combined sales and Product margin: | | | | | | | | | | | | | | Sales | | $ | 5,323,650 | | $ | 3,279,145 | | $ | 9,824,188 | | $ | 5,832,472 | | Product margin (4) | | $ | 301,947 | | $ | 198,680 | | $ | 530,159 | | $ | 363,772 | | Depreciation allocated to cost of sales | | | (20,471) | | | (20,635) | | | (42,445) | | | (40,695) | | Combined gross profit | | $ | 281,476 | | $ | 178,045 | | $ | 487,714 | | $ | 323,077 | |
(1) | Other oils and related products primarily consist of distillates and residual oil. |
(2) | Crude oil consists of the Partnership’s crude oil sales and revenue from its logistics activities. |
(3) | Station operations consist of convenience store and prepared food sales, rental income and sundries. |
(4) | Product margin is a non-GAAP financial measure used by management and external users of the Partnership’s consolidated financial statements to assess its business. The table above includes a reconciliation of product margin on a combined basis to gross profit, a directly comparable GAAP measure. |
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Schedule of reconciliation of the totals reported for the reportable segments to the applicable line items in the consolidated financial statements |
| | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | | June 30, | | June 30, | | | | 2022 | | 2021 | | 2022 | | 2021 | | Combined gross profit | | $ | 281,476 | | $ | 178,045 | | $ | 487,714 | | $ | 323,077 | | Operating costs and expenses not allocated to operating segments: | | | | | | | | | | | | | | Selling, general and administrative expenses | | | 60,870 | | | 54,031 | | | 117,151 | | | 100,355 | | Operating expenses | | | 108,525 | | | 88,169 | | | 207,758 | | | 168,697 | | Amortization expense | | | 2,117 | | | 2,673 | | | 4,616 | | | 5,396 | | Net gain on sale and disposition of assets | | | (76,849) | | | (8) | | | (81,760) | | | (483) | | Long-lived asset impairment | | | — | | | 188 | | | — | | | 188 | | Total operating costs and expenses | | | 94,663 | | | 145,053 | | | 247,765 | | | 274,153 | | Operating income | | | 186,813 | | | 32,992 | | | 239,949 | | | 48,924 | | Interest expense | | | (21,056) | | | (20,320) | | | (42,530) | | | (40,679) | | Income tax expense | | | (2,950) | | | (533) | | | (4,127) | | | (403) | | Net income | | $ | 162,807 | | $ | 12,139 | | $ | 193,292 | | $ | 7,842 | |
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