2 unchanged sentences
Our earnings, cash flows, and liquidity are significantly affected by commodity price volatility.
−Removed: Our Revenues fluctuate with refined product prices and our Cost of revenues (excluding depreciation) fluctuates with movements in crude oil and feedstock prices.
+Added: Our Revenues fluctuate with refined product prices and our Cost of revenues (excluding depreciation) fluctuate with movements in crude oil and feedstock prices.
Assuming all other factors remain constant, a $1 per barrel change in average gross refining margins, based on our throughput of 187 Mbpd for the full year of 2024, would change annualized Operating income by approximately $67.2 million.
6 unchanged sentences
Substantially 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 will expire in March 2025.
−Removed: Based on our net open futures positions at December 31, 2023, a $1 change in the price of crude oil, assuming all other factors remain constant, would result in $6.1 million change to the fair value of our derivative instruments and Cost of revenues (excluding depreciation).
+Added: Our open futures and OTC swaps will expire in December 2025.
+Added: Based on our net open futures positions at December 31, 2024, a $1 change in the price of crude oil, assuming all other factors remain constant, would result in a $6.6 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.
5 unchanged sentences
We are exposed to market risks related to the volatility in the price of RINs required to comply with the Renewable Fuel Standard.
−Removed: Our renewable volume obligation (“RVO”) is based on a percentage of our Hawaii, Wyoming, Washington and Montanta refineries’ production of on-road transportation fuel.
+Added: Our RVO is based on a percentage of our Hawaii, Wyoming, Washington, and Montana refineries’ production of on-road transportation fuel.
The EPA sets the RVO percentages annually.
−Removed: On June 3, 2022, the EPA finalized the 2021 and 2022 RVOs, reduced the existing 2020 RVO, denied 69 small refinery exemption petitions including ours, and proposed that certain small refineries be permitted to use an alternative RIN retirement schedule for their 2019-2020 compliance obligations.
+Added: On June 3, 2022, the EPA finalized the 2021 and 2022 RVOs, reduced the existing 2020 RVO, denied 69 small refinery exemption petitions including ours, and proposed that
+Added: certain small refineries be permitted to use an alternative RIN retirement schedule for their 2019-2020 compliance obligations.
On June 21, 2023, the EPA finalized the 2023, 2024, and 2025 RVOs.
9 unchanged sentences
Interest Rate Risk
−Removed: As of December 31, 2023, we had $665.6 million of indebtedness that was subject to floating interest rates.
−Removed: We also had interest rate exposure in connection with our liabilities under the J.
−Removed: Aron Supply and Offtake Agreement for which we pay charges based on three-month Secured Overnight Financing Rate (“SOFR”).
+Added: As of December 31, 2024, we had $1.1 billion of indebtedness that was subject to floating interest rates.
+Added: We also had interest rate exposure in connection with our liabilities under the Inventory Intermediation Agreement for which we pay charges based on the three-month Secured Overnight Financing Rate (“SOFR”).
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 $1.7 million and $11.2 million per year, respectively.
9 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.