Revenue Recognition

6 Months Ended

Jun. 30, 2024

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,
	2024		2023		2024		2023
Crude oil marketing:
Revenue from contracts with customers:
Goods transferred at a point in time	$	665,865	$	580,636	$	1,277,807	$	1,168,725
Services transferred over time	6		292		31		336
Total revenues from contracts with customers	665,871		580,928		1,277,838		1,169,061
Other (1)	16,954		4,344		28,811		24,687
Total crude oil marketing revenue	$	682,825	$	585,272	$	1,306,649	$	1,193,748
Transportation:
Revenue from contracts with customers:
Goods transferred at a point in time	$	—	$	—	$	—	$	—
Services transferred over time	22,756		24,452		45,987		50,897
Total revenues from contracts with customers	22,756		24,452		45,987		50,897
Other	—		—		—		—
Total transportation revenue	$	22,756	$	24,452	$	45,987	$	50,897
Pipeline and storage: (2)
Revenue from contracts with customers:
Goods transferred at a point in time	$	—	$	—	$	—	$	—
Services transferred over time	20		249		24		249
Total revenues from contracts with customers	20		249		24		249
Other	—		—		—		—
Total pipeline and storage revenue	$	20	$	249	$	24	$	249
Logistics and repurposing:
Revenue from contracts with customers:
Goods transferred at a point in time	$	6,626	$	9,009	$	13,183	$	17,163
Services transferred over time	6,266		5,784		13,700		12,871
Total revenues from contracts with customers	12,892		14,793		26,883		30,034
Other	—		—		—		—
Total logistics and repurposing revenue	$	12,892	$	14,793	$	26,883	$	30,034
Subtotal:
Total revenues from contracts with customers	$	701,539	$	620,422	$	1,350,732	$	1,250,241
Total other (1)	16,954		4,344		28,811		24,687
Total consolidated revenues	$	718,493	$	624,766	$	1,379,543	$	1,274,928

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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)Substantially all pipeline and storage revenue earned during the three and six months ended June 30, 2024 and 2023, was from an affiliated shipper, GulfMark Energy, Inc. (“GulfMark”), our subsidiary, and eliminated in consolidation.

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,
	2024		2023		2024		2023
Revenue gross-up	$	61,988	$	240,969	$	122,158	$	527,671