Segment Reporting

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Segment Reporting

Segment ReportingWe 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) 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.

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
Three Months Ended September 30, 2023
Segment revenues (2)	$	719,925	$	24,333	$	770	$	16,457	$	—	$	761,485
Less: Intersegment revenues (2)	—		(127)		(711)		(33)		—		(871)
Revenues	$	719,925	$	24,206	$	59	$	16,424	$	—	$	760,614
Segment operating earnings (losses) (3)	7,664		1,558		(866)		(269)		—		8,087
Depreciation and amortization	2,092		3,006		266		1,572		—		6,936
Property and equipment additions (4)	140		1,416		182		1,271		—		3,009
Three Months Ended September 30, 2022
Segment revenues (2)	$	814,394	$	29,896	$	852	$	8,677	$	—	$	853,819
Less: Intersegment revenues (2)	—		(66)		(852)		—		—		(918)
Revenues	$	814,394	$	29,830	$	—	$	8,677	$	—	$	852,901
Segment operating earnings (losses) (3)	5,070		3,307		(909)		155		—		7,623
Depreciation and amortization	2,008		2,791		269		940		—		6,008
Property and equipment additions (4)	343		722		817		132		—		2,014
Nine Months Ended September 30, 2023
Segment revenues (2)	$	1,913,673	$	75,439	$	2,473	$	48,984	$	—	$	2,040,569
Less: Intersegment revenues (2)	—		(336)		(2,165)		(2,526)		—		(5,027)
Revenues	$	1,913,673	$	75,103	$	308	$	46,458	$	—	$	2,035,542
Segment operating earnings (losses) (3)	12,922		3,515		(2,846)		133		—		13,724
Depreciation and amortization	6,335		9,273		804		4,877		—		21,289
Property and equipment additions (4) (5)	809		2,754		1,423		3,819		112		8,917
Nine Months Ended September 30, 2022
Segment revenues (2)	$	2,524,465	$	86,207	$	2,912	$	8,677	$	—	$	2,622,261
Less: Intersegment revenues (2)	—		(153)		(2,912)		—		—		(3,065)
Revenues	$	2,524,465	$	86,054	$	—	$	8,677	$	—	$	2,619,196
Segment operating earnings (losses) (3)	20,301		9,112		(2,607)		155		—		26,961
Depreciation and amortization	5,690		8,671		808		940		—		16,109
Property and equipment additions (4)	4,351		1,416		890		132		8		6,797

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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.

(2)Segment revenues include intersegment amounts that are eliminated due to consolidation in operating costs and expenses in our unaudited condensed 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 (losses) included inventory liquidation gains of $4.9 million and inventory valuation losses $5.1 million for the three months ended September 30, 2023 and 2022, respectively. For the nine months ended September 30, 2023 and 2022, our crude oil marketing segment’s operating (losses) earnings included inventory liquidation gains of $2.9 million and $2.1 million, respectively.

(4)Our segment property and equipment additions do not include assets acquired under finance leases during the three and nine months ended September 30, 2023 and 2022. See Note 15 for further information.

(5)Amounts included in property and equipment additions for Other are additions for computer or other office equipment and a company vehicle 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 before income taxes, as follows for the periods indicated (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
Segment operating earnings	$	8,087	$	7,623	$	13,724	$	26,961
General and administrative	(4,162)		(4,630)		(10,649)		(12,860)
Operating earnings	3,925		2,993		3,075		14,101
Interest and other income	119		338		893		665
Interest expense	(1,027)		(119)		(2,525)		(369)
Earnings before income taxes	$	3,017	$	3,212	$	1,443	$	14,397

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

	September 30,		December 31,
	2023		2022
Reporting segment:
Crude oil marketing	$	251,449	$	215,813
Transportation	59,808		60,405
Pipeline and storage	25,123		25,815
Logistics and repurposing	44,264		45,307
Cash and other (1)	29,951		36,819
Total assets	$	410,595	$	384,159

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(1)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.

Accounting policies for transactions between reportable segments are consistent with applicable accounting policies as disclosed herein.