SEGMENT REPORTING

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

The Company’s reportable segments include the (1) Black Oil, (2) Refining and Marketing, and (3) Recovery segments.

(1) The Black Oil segment consists primarily of the sale of (a) petroleum products which include base oil and industrial fuels—which consist of used motor oils, cutterstock and fuel oil generated by our facilities; (b) oil collection services—which consist of used oil sales, burner fuel sales, antifreeze sales and service charges; (c) the sale of other re-refinery products including asphalt, condensate, recovered products, and used motor oil; (d) transportation revenues; and (e) the sale of VGO (vacuum gas oil)/marine fuel.

(2) The Refining and Marketing segment consists primarily of the sale of gasoline, diesel and jet fuel produced at our Mobile refinery as well as pygas and industrial fuels, which are produced at a third-party facility.

(3) The Recovery segment consists primarily of revenues generated from the sale of ferrous and non-ferrous recyclable Metal(s) products that are recovered from manufacturing and consumption. It also includes revenues generated from trading/marketing of Group III Base Oils.

We also disaggregate our revenue by product category for each of our segments, as we believe such disaggregation helps depict how our revenue and cash flows are affected by economic factors.

Segment information for the three and six months ended June 30, 2022 and 2021 is as follows (in thousands):

THREE MONTHS ENDED JUNE 30, 2022
	Black Oil		Refining & Marketing		Recovery		Total
Revenues:
Gasolines	$	—	$	255,909	$	—	$	255,909
Jet Fuels	—		143,688		—		143,688
Diesel	—		322,317		—		322,317
Pygas	—		20,685		—		20,685
Oil collection services	26		—		—		26
Metals (1)	—		—		4,318		4,318
Other refinery products (2)	666		72,460		877		74,003
VGO/Marine fuel sales	19,562		151,331		—		170,893
Total revenues	20,254		966,390		5,195		991,839
Cost of revenues (exclusive of depreciation and amortization shown separately below)	20,147		959,767		4,528		984,442
Depreciation and amortization attributable to costs of revenues	31		3,009		82		3,122
Gross profit	76		3,614		585		4,275
Selling, general and administrative expenses	12,027		23,597		1,017		36,641
Depreciation and amortization attributable to operating expenses	27		736		—		763
Loss from operations	$	(11,978)	$	(20,719)	$	(432)	$	(33,129)

THREE MONTHS ENDED JUNE 30, 2021
	Black Oil		Refining & Marketing		Recovery		Total
Revenues:
Gasolines	$	—	$	6,083	$	—	$	6,083
Diesel	—		13,481		—		13,481
Pygas	—		3,862		—		3,862
Industrial fuel	—		410		—		410
Oil collection services	155		—		—		155
Metals (1)	—		—		6,151		6,151
Other refinery products (2)	—		—		86		86
Total revenues	155		23,836		6,237		30,228
Cost of revenues (exclusive of depreciation and amortization shown separately below)	363		22,248		5,430		28,041
Depreciation and amortization attributable to costs of revenues	19		31		66		116
Gross profit (loss)	(227)		1,557		741		2,071
Selling, general and administrative expenses	3,281		687		209		4,177
Depreciation and amortization attributable to operating expenses	27		—		—		27
Income (loss) from operations	$	(3,535)	$	870	$	532	$	(2,133)

SIX MONTHS ENDED JUNE 30, 2022
	Black Oil		Refining & Marketing		Recovery		Total
Revenues:
Gasoline	$	—	$	263,458	$	—	$	263,458
Jet Fuels	—		143,688		—		143,688
Diesel	—		344,225		—		344,225
Pygas	—		25,375		—		25,375
Industrial fuel	—		572		—		572
Oil collection services	240		—		—		240
Metals (1)	—		—		7,733		7,733
Other refinery products (2)	666		72,460		1,410		74,536
VGO/Marine fuel sales	20,898		151,331		—		172,229
Total revenues	21,804		1,001,109		9,143		1,032,056
Cost of revenues (exclusive of depreciation and amortization shown separately below)	21,797		992,854		8,357		1,023,008
Depreciation and amortization attributable to costs of revenues	47		3,033		156		3,236
Gross profit (loss)	(40)		5,222		630		5,812
Selling, general and administrative expenses	19,438		24,721		1,264		45,423
Depreciation and amortization attributable to operating expenses	54		736		—		790
Loss from operations	$	(19,532)	$	(20,235)	$	(634)	$	(40,401)

SIX MONTHS ENDED JUNE 30, 2021
	Black Oil		Refining & Marketing		Recovery		Total
Revenues:
Gasoline	$	—	$	10,494	$	—	$	10,494
Diesel	—		25,060		—		25,060
Pygas	—		6,835		—		6,835
Industrial fuel	—		721		—		721
Oil collection services	278		—		3		281
Metals (1)	—		—		11,796		11,796
Other refinery products (2)	—		—		86		86
Total revenues	278		43,110		11,885		55,273
Cost of revenues (exclusive of depreciation and amortization shown separately below)	643		40,198		10,009		50,850
Depreciation and amortization attributable to costs of revenues	39		63		126		228
Gross profit (loss)	(404)		2,849		1,750		4,195
Selling, general and administrative expenses	5,223		1,447		365		7,035
Depreciation and amortization attributable to operating expenses	54		—		—		54
Income (loss) from operations	$	(5,681)	$	1,402	$	1,385	$	(2,894)

(1) Metals consist of recoverable ferrous and non-ferrous recyclable metals from manufacturing and consumption. Scrap metal can be recovered from pipes, barges, boats, building supplies, surplus equipment, tanks, and other items consisting of metal composition. These materials are segregated, processed, cut-up and sent back to a steel mill for re-purposing.

(2) Other re-refinery products include the sales of asphalt, condensate, recovered products, and other petroleum products.