Revenue Recognition

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

Revenue Disaggregation

The following table disaggregates our revenue by segment and by major source for the periods indicated (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
Crude Oil Marketing:
Revenue from contracts with customers:
Goods transferred at a point in time	$	580,636	$	952,325	$	1,168,725	$	1,688,359
Services transferred over time	292		—		336		—
Total revenues from contracts with customers	580,928		952,325		1,169,061		1,688,359
Other (1)	4,344		10,191		24,687		21,712
Total crude oil marketing revenue	$	585,272	$	962,516	$	1,193,748	$	1,710,071
Transportation:
Revenue from contracts with customers:
Goods transferred at a point in time	$	—	$	—	$	—	$	—
Services transferred over time	24,452		29,534		50,897		56,224
Total revenues from contracts with customers	24,452		29,534		50,897		56,224
Other	—		—		—		—
Total transportation revenue	$	24,452	$	29,534	$	50,897	$	56,224
Pipeline and storage: (2)
Revenue from contracts with customers:
Goods transferred at a point in time	$	—	$	—	$	—	$	—
Services transferred over time	249		—		249		—
Total revenues from contracts with customers	249		—		249		—
Other	—		—		—		—
Total pipeline and storage revenue	$	249	$	—	$	249	$	—
Logistics and repurposing:
Revenue from contracts with customers:
Goods transferred at a point in time	$	9,009	$	—	$	17,163	$	—
Services transferred over time	5,784		—		12,871		—
Total revenues from contracts with customers	14,793		—		30,034		—
Other	—		—		—		—
Total logistics and repurposing revenue	$	14,793	$	—	$	30,034	$	—
Subtotal:
Total revenues from contracts with customers	$	620,422	$	981,859	$	1,250,241	$	1,744,583
Total other (1)	4,344		10,191		24,687		21,712
Total consolidated revenues	$	624,766	$	992,050	$	1,274,928	$	1,766,295

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(1)Other crude oil marketing revenues are recognized under Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging, and ASC 845, Nonmonetary Transactions – Purchases and Sales of Inventory with the Same Counterparty.

(2)All pipeline and storage revenue during the three and six months ended June 30, 2022 and for the period from January 1, 2023 to May 31, 2023 was from an affiliated shipper, GulfMark Energy, Inc., our subsidiary, and was eliminated in consolidation. During June 2023, we began earning revenue from an unaffiliated shipper.

Other Crude Oil Marketing Revenue

Certain of the commodity purchase and sale contracts utilized by our crude oil marketing business qualify as derivative instruments with certain specifically identified contracts also designated as trading activity. From the time of contract origination, these contracts are marked-to-market and recorded on a net revenue basis in the accompanying unaudited condensed consolidated financial statements.

Certain of our crude oil contracts may be with a single counterparty to provide for similar quantities of crude oil to be bought and sold at different locations. These contracts are entered into for a variety of reasons, including effecting the transportation of the commodity, to minimize credit exposure, and/or to meet the competitive demands of the customer. These buy/sell arrangements are reflected on a net revenue basis in the accompanying unaudited condensed consolidated financial statements.

Reporting these crude oil contracts on a gross revenue basis would increase our reported revenues as follows for the periods indicated (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
Revenue gross-up	$	240,969	$	419,081	$	527,671	$	726,467