11 unchanged sentences
All of our futures and OTC swaps are executed to economically hedge our physical commodity purchases, sales, and inventory.
−Removed: Our open futures and OTC swaps expired in January 2021.
−Removed: At December 31, 2020, these open commodity derivative contracts represent (in thousands of barrels):
−Removed: Contract type Purchases Sales Net
−Removed: Futures 360 — 360
−Removed: Swaps 1,190 (1,000) 190
−Removed: Total 1,550 (1,000) 550
+Added: Our open futures and OTC swaps will expire in April 2022.
Based on our net open futures positions at December 31, 2021, a $1 change in the price of crude oil, assuming all other factors remain constant, would result in $2.1 million change to the fair value of our derivative instruments and Cost of revenues (excluding depreciation).
Our predominant variable operating cost is the cost of fuel consumed in the refining process, which is included in Cost of revenues (excluding depreciation) on our consolidated statements of operations.
−Removed: For the year ended December 31, 2020, we consumed approximately 124 thousand barrels per day of crude oil during the refining process at our Hawaii, Washington, and Wyoming refineries.
−Removed: We internally consume approximately 4% of this throughput in the refining process, which is accounted for as a fuel cost.
−Removed: We have economically hedged 25 thousand barrels per month through December 2021 of our internally consumed fuel cost at our Hawaii refineries by executing option collars.
−Removed: These option collars have a weighted-average strike price ranging from a floor of $36.50 per barrel to a ceiling of $60.00 per barrel and expire in December 2021.
−Removed: We do not currently economically hedge our internally consumed fuel cost at our Wyoming or Washington refineries.
+Added: For the year ended December 31, 2021, we consumed approximately 135 Mbpd of crude oil during the refining process across all our refineries.
+Added: We internally consumed approximately 3% of this throughput in the refining process, which is accounted for as a fuel cost.
+Added: We have executed option collars to economically hedge our internally consumed fuel cost at all our refineries.
+Added: Please read Note 14—Derivatives to our consolidated financial statements under Item 8 of this Form 10-K for more information.
Compliance Program Price Risk
2 unchanged sentences
The EPA sets the RVO percentages annually.
−Removed: EPA has not yet set volumetric requirements for 2021, which makes it difficult to estimate our obligations.
+Added: On December 21, 2021, EPA published proposed RFS that include retroactive cuts to earlier 2020 quotas, set 2021 targets at levels of renewable fuels that were actually used, and would establish significantly higher volume requirements for 2022.
+Added: Whether that rule will be finalized as proposed and how the final rule will fare in the courts may significantly alter our obligations to blend renewable fuels or purchase RINs .
To the degree we are unable to blend the required amount of biofuels to satisfy our RVO, we must purchase RINs on the open market.
4 unchanged sentences
We also had interest rate exposure in connection with our liability under the J.
−Removed: Aron Supply and Offtake Agreements and the MLC Washington Refinery Intermediation Agreement for which we pay charges based on three-month LIBOR.
+Added: Aron Supply and Offtake Agreement and the MLC Washington Refinery Intermediation Agreement for which we pay charges based on three-month LIBOR.
An increase of 1% in the variable rate on our indebtedness, after considering the instruments subject to minimum interest rates, would result in an increase to our Cost of revenues (excluding depreciation) and Interest expense and financing costs, net of approximately $3.8 million and $3.6 million per year, respectively.
3 unchanged sentences
On February 23, 2021, we terminated and repaid all amounts outstanding under the Retail Property Term Loan and the related interest rate swap.
−Removed: Please read Note 24—Subsequent Events to our consolidated financial statements under Item 8 of this Form 10-K for additional discussion on the repayment.
We have several contracts that reference London Interbank Offered Rate (“LIBOR”), some of which terminate after LIBOR is anticipated to cease being reported in 2023.
−Removed: We are currently working or discussing with our lenders to amend our relevant contracts and will continue to assess and monitor the effect that the transition away from LIBOR would have on our financial condition, results of operations, and cash flows.
+Added: Our facilities that currently reference LIBOR include transition language consistent with the scheduled transition.
+Added: We do not expect the transition away from LIBOR to have a material impact on our financial condition, results of operations, or cash flows.
We are subject to the risk of loss resulting from nonpayment or nonperformance by our counterparties.
4 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.