FIXED ASSETS, NET

3 Months Ended

Mar. 31, 2023

Property, Plant and Equipment [Abstract]

Fixed assets consist of the following (in thousands):


	Useful Life (in years)	March 31, 2023		December 31, 2022
Equipment	7 - 20	$	98,665	$	97,120
Furniture and fixtures	7	55		86
Leasehold improvements	15	2,852		2,852
Office equipment	5	1,369		1,433
Vehicles	5	9,868		9,212
Building	20	2,334		2,334
Turnarounds	4	19,453		18,964
Construction in progress		168,021		96,765
Land		9,339		9,168
Total fixed assets		311,956		237,934
Less accumulated depreciation		(39,646)		(36,185)
Net fixed assets		$	272,310	$	201,749

The increase in fixed assets is due to the investment in the Renewable Diesel project at the Mobile Refinery, which began April 1, 2022, and which includes construction in progress. Depreciation expense was $3.6 million and $1.0 million for the three months ended March 31, 2023 and 2022, respectively, for the continued operations.

Asset Retirement Obligations:

The Company has asset retirement obligations with respect to certain of its refinery assets due to various legal obligations to clean and/or dispose of various component parts of each refinery at the time they are retired. However, these component parts can be used for extended and indeterminate periods of time as long as they are properly maintained and/or upgraded. It is the Company’s practice and current intent to maintain its refinery assets and continue making improvements to those assets based on technological advances. As a result, the Company believes that its refinery assets have indeterminate lives for purposes of estimating asset retirement obligations because dates, or ranges of dates, upon which the Company would retire refinery assets cannot reasonably be estimated. When a date or range of dates can reasonably be estimated for the retirement of any component

part of a refinery, the Company estimates the cost of performing the retirement activities and records a liability for the fair value of that cost using established present value techniques.