Segment Reporting

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

We operate and report in four business segments: (i) crude oil marketing, transportation and storage; (ii) tank truck transportation of liquid chemicals, pressurized gases, asphalt and dry bulk; (iii) pipeline transportation, terminalling and storage of crude oil; and (iv) beginning in the third quarter of 2022, interstate bulk transportation logistics of crude oil, condensate, fuels, oils and other petroleum products and recycling and repurposing of off-specification fuels, lubricants, crude oil and other chemicals, which includes the businesses we acquired in August 2022 (see Note 6 for further information regarding our acquisition). Our business segments are generally organized and managed according to the types of services rendered. See Note 3 for a summary of the types of products and services from which each segment derives its revenues.

Our Chief Operating Decision Maker (“CODM”) (our Chief Executive Officer) evaluates segment performance based on measures including segment operating earnings (losses) and capital spending (property and equipment additions). Segment operating earnings (losses) is calculated as segment revenues less segment operating costs and depreciation and amortization expense.

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 repurposing (1)		Other		Total
Year Ended December 31, 2022
Segment revenues (2)	$	3,232,193	$	112,653	$	3,804	$	24,654	$	—	$	3,373,304
Less: Intersegment revenues (2)	—		(277)		(3,804)		(2,306)		—		(6,387)
Revenues	$	3,232,193	$	112,376	$	—	$	22,348	$	—	$	3,366,917
Segment operating earnings (losses) (3)	15,874		10,891		(3,579)		303		—		23,489
Depreciation and amortization	7,724		11,512		1,077		2,394		—		22,707
Property and equipment additions (4) (5)	4,534		1,608		1,050		282		17		7,491
Year Ended December 31, 2021
Segment revenues (2)	$	1,930,042	$	94,824	$	4,524	$	—	$	—	$	2,029,390
Less: Intersegment revenues (2)	—		(326)		(3,860)		—		—		(4,186)
Revenues	$	1,930,042	$	94,498	$	664	$	—	$	—	$	2,025,204
Segment operating earnings (losses) (3)	25,243		7,104		(2,487)		—		—		29,860
Depreciation and amortization	6,673		12,099		1,025		—		—		19,797
Property and equipment additions (4) (5)	3,245		7,960		1,169		—		8		12,382
Year Ended December 31, 2020
Segment revenues (2)	$	950,426	$	71,724	$	272	$	—	$	—	$	1,022,422
Less: Intersegment revenues (2)	—		—		—		—		—		—
Revenues	$	950,426	$	71,724	$	272	$	—	$	—	$	1,022,422
Segment operating earnings (losses) (3)	2,974		1,873		(310)		—		—		4,537
Depreciation and amortization	7,421		10,963		189		—		—		18,573
Property and equipment additions (4) (5)	3,130		1,355		—		—		523		5,008

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

(2)Segment revenues include intersegment amounts that are eliminated in operating costs and expenses in our 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 net inventory valuation losses of $2.0 million, net inventory liquidation gains of $10.3 million, and net inventory valuation losses of $15.0 million for the years ended December 31, 2022, 2021 and 2020, respectively.

(4)Our segment property and equipment additions do not include assets acquired under finance leases during the years ended December 31, 2022, 2021 and 2020. See Note 17 for further information.

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

Segment operating earnings 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):

	Year Ended December 31,
	2022		2021		2020
Segment operating earnings	$	23,489	$	29,860	$	4,537
General and administrative	(17,718)		(13,701)		(10,284)
Operating earnings (losses)	5,771		16,159		(5,747)
Interest income	921		243		656
Interest expense	(1,287)		(746)		(444)
Earnings (losses) before income taxes	$	5,405	$	15,656	$	(5,535)

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

	December 31,
	2022		2021		2020
Reporting segment:
Marketing	$	215,813	$	162,770	$	128,441
Transportation	60,405		67,167		72,247
Pipeline and storage	25,815		25,569		24,541
Logistics and repurposing (1)	45,307		—		—
Cash and other (2)	36,819		119,197		70,958
Total assets	$	384,159	$	374,703	$	296,187

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

All of our property and equipment is located in the U.S. Substantially all of our consolidated revenues are earned in the U.S. and derived from a wide customer base. Accounting policies for transactions between business segments are consistent with applicable accounting policies as disclosed herein.