Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

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

______________

(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

Pre-tax Gain on the Sale of Equipment

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

Company's Asset Retirement Obligations

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