Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2022

Information concerning business activities

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


	Reporting Segments
	Crude oil marketing		Trans-portation		Pipeline and storage		Logistics and repur-posing (1)		Other		Total

Three Months Ended September 30, 2022
Segment revenues (2)	$	814,394	$	29,983	$	2,912	$	8,677	$	—	$	855,966
Less: Intersegment revenues (2)	—		(153)		(2,912)		—		—		(3,065)
Revenues	$	814,394	$	29,830	$	—	$	8,677	$	—	$	852,901

Segment operating earnings (losses) (3)	5,070		3,307		(909)		155		—		7,623
Depreciation and amortization	2,008		2,791		269		940		—		6,008
Property and equipment additions (4) (5)	343		722		817		132		—		2,014

Three Months Ended September 30, 2021
Segment revenues (2)	$	543,228	$	24,867	$	738	$	—	$	—	$	568,833
Less: Intersegment revenues (2)	—		(41)		(611)		—		—		(652)
Revenues	$	543,228	$	24,826	$	127	$	—	$	—	$	568,181

Segment operating earnings (losses) (3)	4,255		2,264		(716)		—		—		5,803
Depreciation and amortization	1,611		2,957		281		—		—		4,849
Property and equipment additions (4) (5)	443		4,904		980		—		—		6,327

Nine Months Ended September 30, 2022
Segment revenues (2)	$	2,524,465	$	86,322	$	5,869	$	8,677	$	—	$	2,625,333
Less: Intersegment revenues (2)	—		(268)		(5,869)		—		—		(6,137)
Revenues	$	2,524,465	$	86,054	$	—	$	8,677	$	—	$	2,619,196

Segment operating earnings (losses) (3)	20,301		9,112		(2,607)		155		—		26,961
Depreciation and amortization	5,690		8,671		808		940		—		16,109
Property and equipment additions (4) (5)	4,351		1,416		890		132		8		6,797

Nine Months Ended September 30, 2021
Segment revenues (2)	$	1,310,343	$	69,670	$	1,808	$	—	$	—	$	1,381,821
Less: Intersegment revenues (2)	—		(112)		(1,293)		—		—		(1,405)
Revenues	$	1,310,343	$	69,558	$	515	$	—	$	—	$	1,380,416

Segment operating earnings (losses) (3)	19,643		4,520		(1,837)		—		—		22,326
Depreciation and amortization	5,050		8,895		758		—		—		14,703
Property and equipment additions (4) (5)	1,145		7,607		1,169		—		8		9,929

_______________

(1)On August 12, 2022, we acquired a transportation logistics and recycling and repurposing business, resulting in a new operating segment. See Note 6 and Note 9 for further information.

(2)Segment revenues include intersegment amounts that are eliminated due to consolidation 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.

(3)Our crude oil marketing segment’s operating earnings included inventory valuation losses of $5.1 million and $0.3 million for the three months ended September 30, 2022 and 2021, respectively. For the nine months ended September 30, 2022 and 2021, our crude oil marketing segment’s operating earnings included inventory liquidation gains of $2.1 million and $10.3 million, respectively.

(4)Our segment property and equipment additions do not include assets acquired under finance leases during the three and nine months ended September 30, 2022 and 2021. See Note 15 for further information.

(5)Amounts included in property and equipment additions for Other are additions for computer equipment at our corporate headquarters, which were not attributed or allocated to any of our reporting segments.

Reconciliation of segment earnings to earnings before income taxes

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


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021

Segment operating earnings	$	7,623	$	5,803	$	26,961	$	22,326
General and administrative	(4,630)		(3,502)		(12,860)		(9,839)
Operating earnings	2,993		2,301		14,101		12,487
Interest and other income	338		37		665		233
Interest expense	(119)		(178)		(369)		(602)
Earnings before income taxes	$	3,212	$	2,160	$	14,397	$	12,118

Identifiable assets by industry segment

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


	September 30,		December 31,
	2022		2021

Reporting segment:
Crude oil marketing	$	231,014	$	162,770
Transportation	61,429		67,167
Pipeline and storage	25,742		25,569
Logistics and repurposing (1)	45,404		—
Cash and other (2)	98,534		119,197
Total assets	$	462,123	$	374,703

_______________

(1)On August 12, 2022, we acquired a transportation logistics and recycling and repurposing business, resulting in a new operating segment. See Note 6 and Note 9 for further information.

(2)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.