FIXED ASSETS, NET

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

Fixed assets consist of the following (in thousands):


	Useful Life (in years)	December 31, 2023		December 31, 2022
Equipment	7-20	$	276,331	$	97,120
Furniture and fixtures	7	46		86
Leasehold improvements	15	2,852		2,852
Office equipment	5	1,400		1,433
Vehicles	5	15,087		9,212
Building	20	3,663		2,334
Turnarounds	4	21,100		18,964
Construction in progress		53,467		96,765
Land		9,793		9,168
Total fixed assets		383,739		237,934
Less accumulated depreciation		(57,628)		(36,185)
Net fixed assets		$	326,111	$	201,749

For the years ended December 31, 2023 and 2022, the Company capitalized interest totaling $6.9 million and $2.1 million, which related to a major construction project at Mobile Refinery.

Depreciation expense was $23.3 million, $11.1 million and $3.9 million for the years ended December 31, 2023, 2022 and 2021, respectively, for the continued operations.

Construction in progress is related to refining equipment at our various facilities. During August 2021, Hurricane Ida made landfall in southeast Louisiana, approximately 30 miles directly south and west of the Myrtle Grove facility, which resulted in the entire 42 acre Myrtle Grove site to be covered with 4-6 feet of storm surge and thus damages of assets and equipment. The Company reviewed the inspection report and related information from insurance companies and a third party engineer, and determined that there is no 100% certainty around the recoverability of some Construction-In-Progress assets such as fire heaters and pumps and instrumentation. The original values of identical or similar assets was used to determine the impairment amount. The Company recorded $2.1 million of loss on assets impairment within other operating expenses on the Consolidated Statements of Operations in the fourth quarter of 2021, of which the entire amount is related to our Black Oil segment.

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.