3 unchanged sentences
Our Revenues fluctuate with refined product prices and our Cost of revenues (excluding depreciation) fluctuates with movements in crude oil and feedstock prices.
−Removed: Assuming all other factors remain constant, a $1 per barrel change in average gross refining margins, based on our throughput for the three months ended September 30, 2021, of 137 thousand barrels per day, would change annualized operating income by approximately $49.4 million.
+Added: Assuming all other factors remain constant, a $1 per barrel change in average gross refining margins, based on our throughput for the three months ended March 31, 2022, of 118 thousand barrels per day, would change annualized operating income by approximately $42.6 million.
This analysis may differ from actual results.
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All of our futures and OTC swaps are executed to economically hedge our physical commodity purchases, sales, and inventory.
−Removed: All our open futures and OTC swaps at September 30, 2021, will settle by February 2022.
−Removed: At September 30, 2021, these open commodity derivative contracts represent (in thousands of barrels):
−Removed: Contract type Purchases Sales Net
−Removed: Futures 192 (342) (150)
−Removed: Swaps 2,725 (3,725) (1,000)
−Removed: Total 2,917 (4,067) (1,150)
−Removed: Based on our net open positions at September 30, 2021, a $1 change in the price of crude oil, assuming all other factors remain constant, would result in a change of approximately $1.2 million to the fair value of these derivative instruments and Cost of revenues (excluding depreciation).
+Added: All our open futures and OTC swaps at March 31, 2022, will settle by March 2023.
+Added: Based on our net open positions at March 31, 2022, a $1 change in the price of crude oil, assuming all other factors remain constant, would result in a change of approximately $2.7 million to the fair value of these 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 condensed consolidated statements of operations.
−Removed: For the three and nine months ended September 30, 2021, we consumed approximately 137 thousand and 135 thousand barrels per day, respectively, of crude oil during the refining process at our Hawaii, Washington, and Wyoming refineries.
−Removed: We internally consumed approximately 3% of this throughput in the refining process during the three and nine months ended September 30, 2021, which is accounted for as a fuel cost.
−Removed: We have economically hedged 25 thousand barrels per month from January 2021 through December 2021 and 35 thousand barrels per month from January 2022 through December 2022 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 from a floor of $56.29 per barrel to a ceiling of $72.86 per barrel, respectively.
−Removed: We do not currently economically hedge our internally consumed fuel cost at our Wyoming or Washington refineries.
+Added: For the three months ended March 31, 2022, we consumed approximately 118 thousand barrels per day of crude oil during the refining process across all our refineries.
+Added: We internally consumed approximately 4% of this throughput in the refining process during the three months ended March 31, 2022, 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 10—Derivatives to our condensed consolidated financial statements for more information.
Compliance Program Price Risk
2 unchanged sentences
The EPA sets the RVO percentages annually.
−Removed: The 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.
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Interest Rate Risk
−Removed: As of September 30, 2021, we had $218.8 million in debt principal that was subject to floating interest rates.
+Added: As of March 31, 2022, we had $237.5 million in debt principal that was subject to floating interest rates.
We also had interest rate exposure in connection with our liabilities under the J.
−Removed: Aron Supply and Offtake Agreement 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 the three-month London Interbank Offered Rate (“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 $4.4 million and $4.6 million per year, respectively.
We may utilize interest rate swaps to manage our interest rate risk.
−Removed: As of December 31, 2020, we had entered into an interest rate swap at an average fixed rate of 3.91% in exchange for the floating interest rate and on the notional amounts due under the Retail Property Term Loan.
−Removed: This swap was set to expire on April 1, 2024, the maturity date of the Retail Property Term Loan.
−Removed: On February 23, 2021, we terminated and repaid all amounts outstanding under the Retail Property Term Loan and the related interest rate swap.
+Added: As of March 31, 2022, we did not hold any open interest rate swaps.
+Added: We have several contracts that reference LIBOR, some of which terminate after LIBOR is anticipated to cease being reported in 2023.
+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 risk of losses resulting from nonpayment or nonperformance by our counterparties.
1 unchanged sentence
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.