Segment Reporting

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

We operate and report in three business segments: (i) crude oil marketing, transportation and storage; (ii) tank truck transportation of liquid chemicals, pressurized gases, asphalt and dry bulk; and (iii) pipeline transportation, terminalling and storage of crude oil.

Financial information by reporting segment was as follows for the periods indicated (in thousands):

	Reporting Segments
	Marketing		Transportation		Pipeline and storage		Other		Total
Three Months Ended March 31, 2021
Segment revenues (1)	$	304,023	$	21,268	$	419	$	—	$	325,710
Less: Intersegment revenues (1)	—		(33)		(186)		—		(219)
Revenues	$	304,023	$	21,235	$	233	$	—	$	325,491
Segment operating earnings (losses) (2)	7,018		774		(565)		—		7,227
Depreciation and amortization	1,798		3,001		254		—		5,053
Property and equipment additions (3)(4)(5)	210		(58)		10		8		170
Three Months Ended March 31, 2020
Segment revenues	$	337,221	$	16,256	$	—	$	—	$	353,477
Less: Intersegment revenues	—		—		—		—		—
Revenues	$	337,221	$	16,256	$	—	$	—	$	353,477
Segment operating earnings (losses) (2)	(17,651)		605		—		—		(17,046)
Depreciation and amortization	2,007		2,466		—		—		4,473
Property and equipment additions (3) (4)	2,032		41		—		139		2,212

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(1)Segment revenues include intersegment amounts that are eliminated in operating costs and expenses in our unaudited condensed consolidated statements of operations. Intersegment activities are conducted at posted tariff rates where applicable, or otherwise at rates similar to those charged to third parties or rates that we believe approximate market at the time the agreement is executed.

(2)Our crude oil marketing segment’s operating (losses) earnings included inventory liquidation gains of $6.9 million and inventory valuation losses of $24.2 million for the three months ended March 31, 2021 and 2020, respectively.

(3)Our segment property and equipment additions do not include assets acquired under finance leases during the three months ended March 31, 2021. See Note 13 for further information.

(4)During the three months ended March 31, 2021 and 2020, we had $8.0 thousand and $0.1 million, respectively, of property and equipment additions for computer equipment and leasehold improvements at our corporate headquarters, which were not attributed or allocated to any of our reporting segments.

(5)During the three months ended March 31, 2021, we received a refund of approximately $0.3 million for amounts previously spent in our transportation segment, which has been reflected as a reduction in property and equipment additions.

Segment operating earnings (losses) reflect revenues net of operating costs and depreciation and amortization expense and are reconciled to earnings (losses) before income taxes, as follows for the periods indicated (in thousands):

	Three Months Ended
	March 31,
	2021		2020
Segment operating earnings (losses)	$	7,227	$	(17,046)
General and administrative	(3,376)		(2,894)
Operating earnings (losses)	3,851		(19,940)
Interest and other income	134		365
Interest expense	(220)		(150)
Earnings (losses) before income taxes	$	3,765	$	(19,725)

Identifiable assets by business segment were as follows at the dates indicated (in thousands):

	March 31,		December 31,
	2021		2020
Reporting segment:
Marketing	$	153,723	$	128,441
Transportation	65,572		72,247
Pipeline and storage	24,290		24,541
Cash and other (1)	88,717		70,958
Total assets	$	332,302	$	296,187

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(1)Other identifiable assets are primarily corporate cash, corporate accounts receivable, properties and operating lease right-of-use assets not identified with any specific segment of our business.

Accounting policies for transactions between reportable segments are consistent with applicable accounting policies as disclosed herein.