Property and Equipment

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and Equipment

The historical costs of our property and equipment and related accumulated depreciation and amortization balances were as follows at the dates indicated (in thousands):

	Estimated
	Useful Life	December 31,
	in Years	2022		2021
Tractors and trailers	5 – 6	$	128,223	$	106,558
Field equipment	2 – 5	24,676		22,851
Finance lease ROU assets (1)	3 – 6	25,106		22,349
Pipeline and related facilities	20 – 25	20,362		20,336
Linefill and base gas (2)	N/A	3,922		3,922
Buildings	5 – 39	16,163		16,163
Office equipment	2 – 5	2,937		2,060
Land	N/A	2,309		2,008
Construction in progress	N/A	3,629		3,396
Total property and equipment, at cost		227,327		199,643
Less accumulated depreciation and amortization		(120,902)		(111,607)
Property and equipment, net		$	106,425	$	88,036

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(1)Our finance lease right-of-use (“ROU”) assets arise from leasing arrangements for the right to use various classes of underlying assets including tractors, trailers, a tank storage and throughput arrangement and office equipment (see Note 17 for further information). Accumulated amortization of the assets presented as “Finance lease ROU assets” was $9.9 million and $9.7 million as of December 31, 2022 and 2021, respectively.

(2)Linefill and base gas represents crude oil in the VEX pipeline (Note 6) and storage tanks we own, and the crude oil is recorded at historical cost.

Components of depreciation and amortization expense were as follows for the periods indicated (in thousands):

	Year Ended December 31,
	2022		2021		2020
Depreciation and amortization, excluding amounts
under finance leases	$	16,330	$	14,264	$	15,467
Amortization of intangible assets (see Note 8)	1,177		789		559
Amortization of property and equipment under finance leases	5,200		4,744		2,547
Total depreciation and amortization	$	22,707	$	19,797	$	18,573

Gains on Sales of Assets

We sold certain used tractors, trailers and other equipment and recorded net pre-tax gains as follows for the periods indicated (in thousands):

	Year Ended December 31,
	2022		2021		2020
Gains on sales of used tractors, trailers and equipment	$	2,512	$	733	$	1,859

Asset Retirement Obligations

We record AROs for the estimated retirement costs associated with certain tangible long-lived assets. The estimated fair value of AROs are recorded in the period in which they are incurred and the corresponding cost is capitalized by increasing the carrying amount of the related long-lived asset. The liability is accreted to its then present value each period, and the capitalized cost is depreciated over the useful life of the asset. If the liability is settled for an amount other than the recorded amount, an increase or decrease to expense is recognized. The following table reflects a summary of our AROs for the periods indicated (in thousands):

	Year Ended December 31,
	2022		2021		2020
ARO liability at beginning of year	$	2,376	$	2,307	$	1,573
Liabilities incurred	29		—		—
Accretion of discount	58		69		49
Liabilities settled	—		—		(38)
AROs related to pipeline acquisition (see Note 6)	—		—		723
ARO liability at end of year	$	2,463	$	2,376	$	2,307