SEGMENT REPORTING

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

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/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 and Recovery segment excludes the Heartland Assets and Operations, which are 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 months ended March 31, 2023 and 2022 is as follows (in thousands):

THREE MONTHS ENDED MARCH 31, 2023
	Refining & Marketing		Black Oil & Recovery		Corporate and Eliminations		Total
Revenues:
Refined products	$	472,552	$	29,423	$	(878)	$	501,097
Re-refined products	184,843		3,694		(2,012)		186,525
Services	1,933		1,587		—		3,520
Total revenues	659,328		34,704		(2,890)		691,142
Cost of revenues (exclusive of depreciation and amortization shown separately below)	589,812		30,418		(878)		619,352
Depreciation and amortization attributable to costs of revenues	3,294		1,043		—		4,337
Gross profit	66,222		3,243		(2,012)		67,453
Selling, general and administrative expenses	26,486		4,799		10,657		41,942
Depreciation and amortization attributable to operating expenses	808		38		170		1,016
Income (loss) from operations	$	38,928	$	(1,594)	$	(12,839)	$	24,495
Capital expenditures	$	69,908	$	4,028	$	—	$	73,936

THREE MONTHS ENDED MARCH 31, 2022
	Refining & Marketing		Black Oil & Recovery		Corporate and Eliminations		Total
Revenues:
Refined products	$	29,457	$	34,952	$	—	$	64,409
Re-refined products	5,262		4,315		—		9,577
Services	—		551		—		551
Total revenues	34,719		39,818		—		74,537
Cost of revenues (exclusive of depreciation and amortization shown separately below)	33,086		27,904		—		60,990
Depreciation and amortization attributable to costs of revenues	123		904		—		1,027
Gross profit	1,510		11,010		—		12,520
Selling, general and administrative expenses	1,125		4,123		6,901		12,149
Depreciation and amortization attributable to operating expenses	105		58		246		409
Income (loss) from operations	$	280	$	6,829	$	(7,147)	$	(38)
Capital expenditures	$	—	$	388	$	—	$	388

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

AS OF MARCH 31, 2023
	Refining & Marketing		Black Oil & Recovery		Corporate and Eliminations		Consolidated
Total assets	$	597,957	$	105,844	$	102,136	$	805,937
AS OF MARCH 31, 2022
	Refining & Marketing		Black Oil & Recovery		Corporate and Eliminations		Consolidated
Total assets	$	4,737	$	105,489	$	170,272	$	280,498

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 of March 31, 2022 and cash.