Revenue Recognition

9 Months Ended

Sep. 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				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
Crude Oil Marketing:
Revenue from contracts with customers:
Goods transferred at a point in time	$	710,010	$	802,707	$	1,878,735	$	2,491,066
Services transferred over time	427		—		763		—
Total revenues from contracts with customers	710,437		802,707		1,879,498		2,491,066
Other (1)	9,488		11,687		34,175		33,399
Total crude oil marketing revenue	$	719,925	$	814,394	$	1,913,673	$	2,524,465
Transportation:
Revenue from contracts with customers:
Goods transferred at a point in time	$	—	$	—	$	—	$	—
Services transferred over time	24,206		29,830		75,103		86,054
Total revenues from contracts with customers	24,206		29,830		75,103		86,054
Other	—		—		—		—
Total transportation revenue	$	24,206	$	29,830	$	75,103	$	86,054
Pipeline and storage: (2)
Revenue from contracts with customers:
Goods transferred at a point in time	$	—	$	—	$	—	$	—
Services transferred over time	59		—		308		—
Total revenues from contracts with customers	59		—		308		—
Other	—		—		—		—
Total pipeline and storage revenue	$	59	$	—	$	308	$	—
Logistics and repurposing:
Revenue from contracts with customers:
Goods transferred at a point in time	$	8,545	$	4,178	$	25,708	$	4,178
Services transferred over time	7,879		4,499		20,750		4,499
Total revenues from contracts with customers	16,424		8,677		46,458		8,677
Other	—		—		—		—
Total logistics and repurposing revenue	$	16,424	$	8,677	$	46,458	$	8,677
Subtotal:
Total revenues from contracts with customers	$	751,126	$	841,214	$	2,001,367	$	2,585,797
Total other (1)	9,488		11,687		34,175		33,399
Total consolidated revenues	$	760,614	$	852,901	$	2,035,542	$	2,619,196

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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 nine months ended September 30, 2022 and for the period from January 1, 2023 to May 31, 2023 was from an affiliated shipper, GulfMark Energy, Inc. (“GulfMark”), 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				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
Revenue gross-up	$	257,965	$	430,244	$	785,636	$	1,156,711