SEGMENT REPORTING

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

After the acquisition of the Mobile Refinery on April 1, 2022, the revenues of our Black Oil and Recovery segments are less than 10% of consolidated revenue. The Company decided to present our Black Oil and Recovery segment together during this reporting period.

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

The Black Oil and Recovery 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; (e) the sale of VGO (vacuum gas oil)/marine fuel; (f) the sale of ferrous and non-ferrous recyclable Metal(s) products that are recovered from manufacturing and consumption; and (g) revenues generated from trading/marketing of Group III Base Oils. The Black Oil segment includes the Heartland Business, which is presented herein as discontinued operations.

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 nine months ended September 30, 2022 and 2021 is as follows (in thousands):

THREE MONTHS ENDED SEPTEMBER 30, 2022
	Black Oil & Recovery		Refining & Marketing		Corporate and Eliminations		Consolidated
Revenues:
Refined products	$	37,607	$	694,677	$	—	$	732,284
Re-refined products	5,550		69,948		—		75,498
Services	282		2,144		—		2,426
Total revenues	43,439		766,769		—		810,208
Cost of revenues (exclusive of depreciation and amortization shown separately below)	35,299		715,164		—		750,463
Depreciation and amortization attributable to costs of revenues	939		3,111		—		4,050
Gross profit	7,201		48,494		—		55,695
Selling, general and administrative expenses	4,919		27,988		4,071		36,978
Depreciation and amortization attributable to operating expenses	39		850		231		1,120
Income (loss) from operations	$	2,243	$	19,656	$	(4,302)	$	17,597
Capital expenditures	$	412	$	26,333	$	—	$	26,745

THREE MONTHS ENDED SEPTEMBER 30, 2021
	Black Oil & Recovery		Refining & Marketing		Corporate and Eliminations		Consolidated
Revenues:
Refined products	$	20,339	$	20,419	$	—	$	40,758
Re-refined products	5,237		4,153		—		9,390
Services	834		—		—		834
Total revenues	26,410		24,572		—		50,982
Cost of revenues (exclusive of depreciation and amortization shown separately below)	22,205		23,937		—		46,142
Depreciation and amortization attributable to costs of revenues	901		127		—		1,028
Gross profit	3,304		508		—		3,812
Selling, general and administrative expenses	3,618		1,034		3,525		8,177
Depreciation and amortization attributable to operating expenses	59		108		253		420
Loss from operations	$	(373)	$	(634)	$	(3,778)	$	(4,785)
Capital expenditures	$	228	$	—	$	—	$	228

NINE MONTHS ENDED SEPTEMBER 30, 2022
	Black Oil & Recovery		Refining & Marketing		Corporate and Eliminations		Consolidated
Revenues:
Refined products	$	129,078	$	1,595,070	$	—	$	1,724,148
Re-refined products	17,191		168,356		—		185,547
Services	1,276		4,452		—		5,728
Total revenues	147,545		1,767,878		—		1,915,423
Cost of revenues (exclusive of depreciation and amortization shown separately below)	111,740		1,708,017		—		1,819,757
Depreciation and amortization attributable to costs of revenues	2,805		6,339		—		9,144
Gross profit	33,000		53,522		—		86,522
Selling, general and administrative expenses	13,383		52,709		23,842		89,934
Depreciation and amortization attributable to operating expenses	142		1,785		729		2,656
Income (loss) from operations	$	19,475	$	(972)	$	(24,571)	$	(6,068)
Capital expenditures	$	2,830	$	142,927	$	—	$	145,757

NINE MONTHS ENDED SEPTEMBER 30, 2021
	Black Oil & Recovery		Refining & Marketing		Corporate and Eliminations		Consolidated
Revenues:
Refined products	$	58,039	$	55,974	$	—	$	114,013
Re-refined products	19,218		11,709		—		30,927
Services	2,867		—		—		2,867
Total revenues	80,124		67,683		—		147,807
Cost of revenues (exclusive of depreciation and amortization shown separately below)	63,431		64,555		—		127,986
Depreciation and amortization attributable to costs of revenues	2,623		379		—		3,002
Gross profit	14,070		2,749		—		16,819
Selling, general and administrative expenses	10,841		2,482		8,419		21,742
Depreciation and amortization attributable to operating expenses	176		325		759		1,260
Income (loss) from operations	$	3,053	$	(58)	$	(9,178)	$	(6,183)
Capital expenditures	$	2,313	$	—	$	—	$	2,313

Total assets by segment were as follows (in thousands):

AS OF SEPTEMBER 30, 2022
	Black Oil & Recovery		Refining & Marketing		Corporate and Eliminations		Consolidated
Total assets	$	123,808	$	395,692	$	128,077	$	647,577
AS OF SEPTEMBER 30, 2021
	Black Oil & Recovery		Refining & Marketing		Corporate and Eliminations		Consolidated
Total assets	$	101,461	$	4,775	$	38,414	$	144,650

Segment assets for the Refining and Marketing and Black Oil and Recovery segments consist of property, plant, and equipment, right-of-use assets, intangible assets, accounts receivable, inventories and other assets. Assets for the corporate unallocated amounts consist of property, plant, and equipment used at the corporate headquarters, intangible assets, derivative commodity assets, assets held for sale as well as cash.