Derivatives | Derivatives The Company is exposed to price risks due to fluctuations in the price of crude oil, refined products (primarily in the Company’s fuel products segment), natural gas and precious metals. The Company uses various strategies to reduce its exposure to commodity price risk. The strategies to reduce the Company’s risk utilize both physical forward contracts and financially settled derivative instruments, such as swaps, collars and options, to attempt to reduce the Company’s exposure with respect to: • crude oil purchases and sales; • fuel product sales and purchases; • natural gas purchases; • precious metals purchases: and • fluctuations in the value of crude oil between geographic regions and between the different types of crude oil such as NYMEX West Texas Intermediate (“NYMEX WTI”), Light Louisiana Sweet (“LLS”), Western Canadian Select (“WCS”), Mixed Sweet Blend (“MSW”) and ICE Brent (“Brent”). The Company manages its exposure to commodity markets, credit, volumetric and liquidity risks to manage its costs and volatility of cash flows as conditions warrant or opportunities become available. These risks may be managed in a variety of ways that may include the use of derivative instruments. Derivative instruments may be used for the purpose of mitigating risks associated with an asset, liability and anticipated future transactions. The changes in fair value of the Company’s derivative instruments will affect its earnings and cash flows; however, such changes should be offset by price or rate changes related to the underlying commodity or financial transaction that is part of the risk management strategy. The Company does not speculate with derivative instruments or other contractual arrangements that are not associated with its business objectives. Speculation is defined as increasing the Company’s natural position above the maximum position of its physical assets or trading in commodities, currencies or other risk bearing assets that are not associated with the Company’s business activities and objectives. The Company’s positions are monitored routinely by a risk management committee to ensure compliance with its stated risk management policy and documented risk management strategies. All strategies are reviewed on an ongoing basis by the Company’s risk management committee, which will add, remove or revise strategies in anticipation of changes in market conditions and/or in risk profiles. These changes in strategies are to position the Company in relation to its risk exposures in an attempt to capture market opportunities as they arise. The Company recognizes all derivative instruments at their fair values (see Note 9 ) as either current assets or current liabilities in the consolidated balance sheets. Fair value includes any premiums paid or received and unrealized gains and losses. Fair value does not include any amounts receivable from or payable to counterparties, or collateral provided to counterparties. Derivative asset and liability amounts with the same counterparty are netted against each other for financial reporting purposes. The Company’s financial results are subject to the possibility that changes in a derivative’s fair value could result in significant ineffectiveness and potentially no longer qualify portions or all of its derivative instruments for hedge accounting. The following tables summarize the Company’s gross fair values of its derivative instruments, presenting the impact of offsetting derivative assets in the Company’s consolidated balance sheets as of December 31, 2015 and 2014 (in millions): December 31, 2015 December 31, 2014 Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Assets Presented in the Consolidated Balance Sheets Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Assets Presented in the Consolidated Balance Sheets Derivative instruments designated as hedges: Fuel products segment: Crude oil swaps $ — $ — $ — $ — $ (10.0 ) $ (10.0 ) Gasoline swaps — — — 15.9 (4.4 ) 11.5 Swaps not allocated to a specific segment: Interest rate swaps — — — 2.5 — 2.5 Total derivative instruments designated as hedges — — — 18.4 (14.4 ) 4.0 Derivative instruments not designated as hedges: Specialty products segment: Natural gas swaps — — — — (7.2 ) (7.2 ) Natural gas collars — — — 0.1 (0.6 ) (0.5 ) Platinum swaps — — — — (0.1 ) (0.1 ) Fuel products segment: Crude oil swaps — — — 31.4 (111.2 ) (79.8 ) Crude oil basis swaps 0.4 (0.4 ) — 0.8 — 0.8 Crude oil percentage basis swaps 0.2 (0.2 ) — — (0.2 ) (0.2 ) Crude oil options 0.8 (0.8 ) — — — — Gasoline swaps — — — 2.4 (0.4 ) 2.0 Diesel swaps — — — 116.1 (19.1 ) 97.0 Diesel crack spread swaps — — — 4.5 — 4.5 Jet fuel swaps — — — 7.9 (5.2 ) 2.7 Total derivative instruments not designated as hedges 1.4 (1.4 ) — 163.2 (144.0 ) 19.2 Total derivative instruments $ 1.4 $ (1.4 ) $ — $ 181.6 $ (158.4 ) $ 23.2 The following tables summarize the Company’s gross fair values of its derivative instruments, presenting the impact of offsetting derivative liabilities in the Company’s consolidated balance sheets as of December 31, 2015 and 2014 (in millions): December 31, 2015 December 31, 2014 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Liabilities Presented in the Consolidated Balance Sheets Derivative instruments designated as hedges: Fuel products segment: Crude oil swaps $ — $ — $ — $ (13.8 ) $ 10.0 $ (3.8 ) Gasoline swaps — — — — 4.4 4.4 Total derivative instruments designated as hedges — — — (13.8 ) 14.4 0.6 Derivative instruments not designated as hedges: Specialty products segment: Natural gas swaps (14.9 ) — (14.9 ) (12.1 ) 7.2 (4.9 ) Natural gas collars (0.9 ) — (0.9 ) (1.1 ) 0.6 (0.5 ) Platinum swaps — — — (0.1 ) 0.1 — Fuel products segment: Crude oil swaps (5.2 ) — (5.2 ) (102.4 ) 111.2 8.8 Crude oil basis swaps (0.7 ) 0.4 (0.3 ) — — — Crude oil percentage basis swaps (6.9 ) 0.2 (6.7 ) (0.2 ) 0.2 — Crude oil options (1.1 ) 0.8 (0.3 ) — — — Gasoline swaps — — — (1.0 ) 0.4 (0.6 ) Gasoline crack spread swaps (4.3 ) — (4.3 ) — — — Diesel swaps — — — (28.1 ) 19.1 (9.0 ) Jet fuel swaps — — — (5.2 ) 5.2 — Natural gas swaps (1.3 ) — (1.3 ) — — — Total derivative instruments not designated as hedges (35.3 ) 1.4 (33.9 ) (150.2 ) 144.0 (6.2 ) Total derivative instruments $ (35.3 ) $ 1.4 $ (33.9 ) $ (164.0 ) $ 158.4 $ (5.6 ) The Company is exposed to credit risk in the event of nonperformance by its counterparties on these derivative transactions. The Company does not expect nonperformance on any derivative instruments, however, no assurances can be provided. The Company’s credit exposure related to these derivative instruments is represented by the fair value of contracts reported as derivative assets. As of December 31, 2015 , the Company had no counterparties in which derivatives held were net assets. As of December 31, 2014 , the Company had five counterparties, in which derivatives held were net assets, totaling $23.2 million . To manage credit risk, the Company selects and periodically reviews counterparties based on credit ratings. The Company primarily executes its derivative instruments with large financial institutions that have ratings of at least Baa1 and BBB+ by Moody’s Investor Service, Inc. (“Moody’s”) and Standard & Poor’s Ratings Services (“S&P”), respectively. In the event of default, the Company would potentially be subject to losses on derivative instruments with mark-to-market gains. The Company requires collateral from its counterparties when the fair value of the derivatives exceeds agreed upon thresholds in its master derivative contracts with these counterparties. No such collateral was held by the Company as of December 31, 2015 or December 31, 2014 . The Company’s contracts with these counterparties allow for netting of derivative instruments executed under each contract. Collateral received from counterparties is reported in other current liabilities, and collateral held by counterparties is reported in deposits, on the Company’s consolidated balance sheets and is not netted against derivative assets or liabilities. Any outstanding collateral is released to the Company upon settlement of the related derivative instrument liability. As of December 31, 2015 and 2014 , the Company had provided its counterparties with no collateral. Certain of the Company’s outstanding derivative instruments are subject to credit support agreements with the applicable counterparties which contain provisions setting certain credit thresholds above which the Company may be required to post agreed-upon collateral, such as cash or letters of credit, with the counterparty to the extent that the Company’s mark-to-market net liability, if any, on all outstanding derivatives exceeds the credit threshold amount per such credit support agreement. The majority of the credit support agreements covering the Company’s outstanding derivative instruments also contain a general provision stating that if the Company experiences a material adverse change in its business, in the reasonable discretion of the counterparty, the Company’s credit threshold could be lowered by such counterparty. The Company does not expect that it will experience a material adverse change in its business. The cash flow impact of the Company’s derivative activities is classified primarily as a change in derivative activity in the operating activities section in the consolidated statements of cash flows. Derivative Instruments Designated as Cash Flow Hedges The Company accounts for certain derivatives hedging purchases of crude oil and sales of gasoline, diesel and jet fuel swaps as cash flow hedges. The derivative instruments designated as cash flow hedges that are hedging sales and purchases are recorded to sales and cost of sales, respectively, in the consolidated statements of operations upon recording the related hedged transaction in sales or cost of sales. The Company assesses, both at inception of the cash flow hedge and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. Periodically, the Company may enter into crude oil and fuel product basis swaps to more effectively hedge its crude oil purchases, crude oil sales and fuel products sales. These derivatives can be combined with a swap contract in order to create a more effective cash flow hedge. To the extent a derivative instrument designated as a cash flow hedge is determined to be effective as a cash flow hedge of an exposure to changes in the fair value of a future transaction, the change in fair value of the derivative is deferred in accumulated other comprehensive income (loss), a component of partners’ capital in the consolidated balance sheets, until the underlying transaction hedged is recognized in the consolidated statements of operations. Ineffectiveness is inherent in the hedging of crude oil and fuel products. Due to the volatility in the markets for crude oil and fuel products, the Company is unable to predict the amount of ineffectiveness each period, determined on a derivative by derivative basis or in the aggregate for a specific commodity, and has the potential for the future loss of cash flow hedge accounting. Ineffectiveness has resulted, and the loss of cash flow hedge accounting has resulted, in increased volatility in the Company’s financial results. However, even though certain derivative instruments may not qualify for cash flow hedge accounting, the Company intends to continue to utilize such instruments as management believes such derivative instruments continue to provide the Company with the opportunity to more effectively stabilize cash flows. Cash flow hedge accounting is discontinued when it is determined that a derivative no longer qualifies as an effective hedge or when it is no longer probable that the hedged forecasted transaction will occur. When cash flow hedge accounting is discontinued because the derivative instrument no longer qualifies as an effective cash flow hedge, the derivative instrument is subject to the mark-to-market method of accounting prospectively. Changes in the mark-to-market fair value of the derivative instrument are recorded to unrealized gain (loss) on derivative instruments in the consolidated statements of operations. Unrealized gains and losses related to discontinued cash flow hedges that were previously deferred in accumulated other comprehensive income (loss) will remain in accumulated other comprehensive income (loss) until the underlying transaction is reflected in earnings, unless it is probable that the hedged forecasted transaction will not occur, at which time, associated deferred amounts in accumulated other comprehensive income (loss) are immediately recognized in unrealized gain (loss) on derivative instruments. The Company recorded the following amounts in its consolidated balance sheets, consolidated statements of operations, consolidated statements of comprehensive income (loss) and consolidated statements of partners’ capital as of, and for the years ended December 31, 2015 and 2014 , related to its derivative instruments that were designated as cash flow hedges (in millions): Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivatives (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Net Loss (Effective Portion) Amount of Gain (Loss) Recognized in Net Loss on Derivatives (Ineffective Portion) Year Ended December 31, Location of (Gain) Loss Year Ended December 31, Location of Gain (Loss) Year Ended December 31, Type of Derivative 2015 2014 2015 2014 2015 2014 Specialty products segment: Crude oil swaps $ — $ — Cost of sales $ 3.0 $ 1.8 Unrealized/Realized $ — $ — Fuel products segment: Crude oil swaps (5.6 ) (185.8 ) Cost of sales (170.3 ) 44.2 Unrealized/Realized (0.2 ) 4.8 Gasoline swaps 5.7 56.3 Sales 44.7 (1.4 ) Unrealized/Realized 0.7 (7.6 ) Diesel swaps (8.8 ) 220.0 Sales 121.6 (6.7 ) Unrealized/Realized — — Jet fuel swaps 1.4 23.7 Sales 13.1 (0.9 ) Unrealized/Realized — 0.6 Total $ (7.3 ) $ 114.2 $ 12.1 $ 37.0 $ 0.5 $ (2.2 ) The effective portion of the cash flow hedges classified in accumulated other comprehensive income (loss) was a gain of $6.4 million and a gain of $25.8 million as of December 31, 2015 and 2014 , respectively. Absent a change in the fair market value of the underlying transactions, except for any underlying transactions pertaining to the payment of interest on existing financial instruments, the following other comprehensive gain at December 31, 2015 , will be reclassified to earnings by December 31, 2016, with balances being recognized as follows (in millions): Year Accumulated Other Comprehensive Income 2016 $ 6.4 Total $ 6.4 Derivative Instruments Designated as Fair Value Hedges For derivative instruments that are designated and qualify as a fair value hedge (which are limited to interest rate swaps), the effective gain or loss on the derivative instrument, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized as interest expense in the consolidated statements of operations. No hedge ineffectiveness was recognized as the interest rate swap qualifies for the “shortcut” method and, as a result, changes in the fair value of the derivative instrument offset the changes in the fair value of the underlying hedged debt. In addition, the differential to be paid or received on the interest rate swap arrangement is accrued and recognized as an adjustment to interest expense in the consolidated statements of operations. The Company assesses at the inception of the fair value hedge whether the derivatives that are used in the hedging transactions are highly effective in offsetting changes in fair values of hedged items. Fair value hedge accounting is discontinued when it is determined that a derivative no longer qualifies as an effective hedge or when it is no longer probable that the hedged forecasted transaction will occur. When fair value hedge accounting is discontinued because the derivative instrument no longer qualifies as effective fair value hedge, the derivative instrument is still subject to mark-to-market method of accounting, however the Company will cease to adjust the hedged asset or liability for changes in fair value. In 2014, the Company entered into an interest rate swap agreement which converts a portion of the Company’s fixed rate debt to a floating rate. This agreement involves the receipt of fixed rate amounts in exchange for floating rate interest payments over the life of the agreement without an exchange of the underlying principal amount. Also, in connection with the interest rate swap agreement, the Company entered into an option that permits the counterparty to cancel the interest rate swap for a specified premium. The Company designated this interest rate swap and option as a fair value hedge. On January 13, 2015, the Company terminated its interest rate swap, which was designated as a fair value hedge, related to a notional amount of $200.0 million of 2022 Notes. In settlement of this swap, the Company recognized a net gain of approximately $3.3 million . The Company recorded the following gains (losses) in its consolidated statements of operations for the years ended December 31, 2015 and 2014 related to its derivative instrument designated as a fair value hedge (in millions): Location of Gain of Derivative Amount of Gain Recognized in Net Loss Hedged Item Location of Loss on Hedged Item Amount of Loss Recognized in Net Loss Year Ended December 31, Year Ended December 31, 2015 2014 2015 2014 Swaps not allocated to a specific segment: Interest rate swap Interest expense $ 0.5 $ 2.5 2022 Notes Interest expense $ — $ (2.5 ) Total $ 0.5 $ 2.5 $ — $ (2.5 ) Derivative Instruments Not Designated as Hedges For derivative instruments not designated as hedges, the change in fair value of the asset or liability for the period is recorded to unrealized gain (loss) on derivative instruments in the consolidated statements of operations. Upon the settlement of a derivative not designated as a hedge, the gain or loss at settlement is recorded to realized gain (loss) on derivative instruments in the consolidated statements of operations. The Company has entered into crude oil basis swaps that do not qualify as cash flow hedges for accounting purposes as they were not entered into simultaneously with a corresponding NYMEX WTI derivative contract. Additionally, the Company has entered into diesel crack spread collars, gasoline crack spread collars, natural gas collars, and certain other crude oil swaps, diesel swaps, gasoline swaps, natural gas swaps and platinum swaps that do not qualify as cash flow hedges for accounting purposes as they are determined not to be highly effective in offsetting changes in the cash flows associated with crude oil purchases and gasoline and diesel sales at the Company’s Superior refinery. The Company recorded the following gains (losses) in its consolidated statements of operations for the years ended December 31, 2015 and 2014 related to its derivative instruments not designated as hedges (in millions): Amount of Gain (Loss) Recognized in Realized Gain (Loss) on Derivative Instruments Amount of Gain (Loss) Recognized in Unrealized Gain (Loss) on Derivative Instruments Year Ended December 31, Year Ended December 31, Type of Derivative 2015 2014 2015 2014 Specialty products segment: Natural gas swaps $ (10.7 ) $ 1.1 $ (2.5 ) $ (11.9 ) Platinum swaps (0.8 ) — 0.1 (0.1 ) Fuel products segment: Crude oil swaps (67.6 ) (48.5 ) 52.0 (61.9 ) Crude oil basis swaps 1.1 5.7 (7.8 ) 0.1 Crude oil percentage basis swaps (3.2 ) — 0.2 — Crude oil options 6.1 — (0.3 ) — Gasoline swaps (20.0 ) (2.2 ) (0.7 ) 10.1 Gasoline crack spread swaps (5.5 ) — (4.3 ) — Gasoline crack spread collars — (0.4 ) — — Diesel swaps 82.3 76.3 (68.7 ) 71.5 Diesel crack spread swaps 24.3 (3.6 ) — 4.5 Diesel percentage basis crack spread swaps (0.1 ) — (4.5 ) — Diesel crack spread collars — 1.0 — (0.1 ) Jet fuel swaps 1.6 3.2 (1.6 ) 0.7 Jet fuel crack spread swaps — (0.1 ) — — Natural gas swaps — — (1.3 ) — Total $ 7.5 $ 32.5 $ (39.4 ) $ 12.9 Derivative Positions — Specialty Products Segment Natural Gas Swap Contracts At December 31, 2015 , the Company had the following derivatives related to natural gas purchases in its specialty products segment, none of which are designated as hedges: Natural Gas Swap Contracts by Expiration Dates MMBtu $/MMBtu First Quarter 2016 1,580,000 $ 4.24 Second Quarter 2016 1,380,000 $ 4.26 Third Quarter 2016 1,380,000 $ 4.26 Fourth Quarter 2016 1,540,000 $ 4.14 Calendar Year 2017 4,950,000 $ 3.85 Total 10,830,000 Average price $ 4.05 At December 31, 2014 , the Company had the following derivatives related to natural gas purchases in its specialty products segment, none of which are designated as hedges: Natural Gas Swap Contracts by Expiration Dates MMBtu $/MMBtu First Quarter 2015 1,770,000 $ 4.09 Second Quarter 2015 1,500,000 $ 4.11 Third Quarter 2015 1,500,000 $ 4.11 Fourth Quarter 2015 1,900,000 $ 4.12 Calendar Year 2016 5,880,000 $ 4.22 Calendar Year 2017 1,830,000 $ 4.28 Total 14,380,000 Average price $ 4.18 Natural Gas Collars At December 31, 2015 , the Company had the following derivatives related to natural gas purchases in its specialty products segment, none of which are designated as hedges: Natural Gas Collars by Expiration Dates MMBtu Average Bought Call ($/MMBtu) Average Sold Put ($/MMBtu) First Quarter 2016 180,000 $ 4.25 $ 3.89 Second Quarter 2016 180,000 $ 4.25 $ 3.89 Third Quarter 2016 180,000 $ 4.25 $ 3.89 Fourth Quarter 2016 60,000 $ 4.25 $ 3.89 Total 600,000 Average price $ 4.25 $ 3.89 At December 31, 2014 , the Company had the following derivatives related to natural gas purchases in its specialty products segment, none of which are designated as hedges: Natural Gas Collars by Expiration Dates MMBtu Average Bought Call ($/MMBtu) Average Sold Put ($/MMBtu) First Quarter 2015 240,000 $ 4.25 $ 3.79 Second Quarter 2015 240,000 $ 4.25 $ 3.79 Third Quarter 2015 240,000 $ 4.25 $ 3.79 Fourth Quarter 2015 200,000 $ 4.25 $ 3.85 Calendar Year 2016 600,000 $ 4.25 $ 3.89 Total 1,520,000 Average price $ 4.25 $ 3.84 Derivative Positions — Fuel Products Segment Crude Oil Swap Contracts At December 31, 2015 , the Company had the following derivatives related to crude oil purchases in its fuel products segment, none of which are designated as hedges: Crude Oil Swap Contracts by Expiration Dates Barrels Purchased BPD Average Swap First Quarter 2016 29,120 320 $ 44.06 Second Quarter 2016 29,120 320 $ 44.06 Third Quarter 2016 29,440 320 $ 44.06 Fourth Quarter 2016 29,440 320 $ 44.06 Calendar Year 2017 630,720 1,728 $ 54.94 Total 747,840 Average price $ 53.24 At December 31, 2014 , the Company had the following derivatives related to crude oil purchases in its fuel products segment, all of which are designated as cash flow hedges: Crude Oil Swap Contracts by Expiration Dates Barrels Purchased BPD Average Swap First Quarter 2015 315,000 3,500 $ 97.71 Total 315,000 Average price $ 97.71 At December 31, 2014 , the Company had the following derivatives related to crude oil purchases in its fuel products segment, none of which are designated as hedges: Crude Oil Swap Contracts by Expiration Dates Barrels Purchased BPD Average Swap First Quarter 2015 1,674,000 18,600 $ 89.55 Second Quarter 2015 91,000 1,000 $ 89.89 Third Quarter 2015 386,400 4,200 $ 69.20 Fourth Quarter 2015 386,400 4,200 $ 69.20 Calendar Year 2016 972,828 2,658 $ 78.02 Total 3,510,628 Average price $ 81.89 At December 31, 2014 , the Company had the following derivatives related to crude oil sales in its fuel products segment, none of which are designated as hedges: Crude Oil Swap Contracts by Expiration Dates Barrels Sold BPD Average Swap First Quarter 2015 1,674,000 18,600 $ 84.21 Total 1,674,000 Average price $ 84.21 Crude Oil Basis Swap Contracts The Company has entered into crude oil basis swaps to mitigate the risk of future changes in pricing differentials between LLS and NYMEX WTI. At December 31, 2015 , the Company had the following derivatives related to crude oil basis swaps in its fuel products segment, none of which are designated as hedges: Crude Oil Basis Swap Contracts by Expiration Dates Barrels Purchased BPD Average Differential to NYMEX WTI First Quarter 2016 182,000 2,000 $ 2.40 Second Quarter 2016 182,000 2,000 $ 2.40 Third Quarter 2016 184,000 2,000 $ 2.40 Fourth Quarter 2016 184,000 2,000 $ 2.40 Total 732,000 Average differential $ 2.40 The Company has entered into crude oil basis swaps to mitigate the risk of future changes in pricing differentials between WCS and NYMEX WTI. At December 31, 2015 , the Company had the following derivatives related to crude oil basis swaps in its fuel products segment, none of which are designated as hedges: Crude Oil Basis Swap Contracts by Expiration Dates Barrels Purchased BPD Average Differential to NYMEX WTI First Quarter 2016 91,000 1,000 $ (14.10 ) Second Quarter 2016 91,000 1,000 $ (14.10 ) Third Quarter 2016 92,000 1,000 $ (14.10 ) Fourth Quarter 2016 92,000 1,000 $ (14.10 ) Calendar Year 2017 365,000 1,000 $ (13.70 ) Total 731,000 Average differential $ (13.90 ) At December 31, 2014 , the Company had the following derivatives related to crude oil basis swaps in its fuel products segment, none of which are designated as hedges: Crude Oil Basis Swap Contracts by Expiration Dates Barrels Purchased BPD Average Differential to NYMEX WTI First Quarter 2015 118,000 2,000 $ (22.40 ) Total 118,000 Average differential $ (22.40 ) Crude Oil Percentage Basis Swap Contracts The Company has entered into derivative instruments to secure a percentage differential on WCS crude oil to NYMEX WTI. At December 31, 2015 , the Company had the following derivatives related to crude oil percentage basis swaps in its fuel products segment, none of which are designated as hedges: Crude Oil Percentage Basis Swap Contracts by Expiration Dates Barrels Purchased BPD Fixed Percentage of NYMEX WTI (Average % of WTI/Bbl) First Quarter 2016 728,000 8,000 73.5 % Second Quarter 2016 728,000 8,000 73.5 % Third Quarter 2016 736,000 8,000 73.5 % Fourth Quarter 2016 736,000 8,000 73.5 % Calendar Year 2017 730,000 2,000 73.0 % Total 3,658,000 Average percentage 73.4 % At December 31, 2014 , the Company had the following derivatives related to crude oil percentage basis swaps in its fuel products segment, none of which are designated as hedges: Crude Oil Percentage Basis Swap Contracts by Expiration Dates Barrels Purchased BPD Fixed Percentage of NYMEX WTI (Average % of WTI/ B bl) Third Quarter 2015 184,000 2,000 73.0 % Fourth Quarter 2015 184,000 2,000 73.0 % Total 368,000 Average percentage 73.0 % Crude Oil Option Contracts During 2015 , the Company entered into derivative instruments to mitigate the risk of future changes in the price of NYMEX WTI crude oil. At December 31, 2015 , the Company had the following derivatives related to crude oil call option purchases in its fuel products segment, none of which are designated as hedges: Crude Oil Option Contracts by Expiration Dates Barrels Purchased BPD Average Bought Call ($/Bbl) Fourth Quarter 2016 350,000 11,290 $ 55.00 Total 350,000 Average price $ 55.00 Gasoline Swap Contracts At December 31, 2014 , the Company had the following derivatives related to gasoline sales in its fuel products segment, all of which are designated as cash flow hedges: Gasoline Swap Contracts by Expiration Dates Barrels Sold BPD Average Swap ($/Bbl) First Quarter 2015 315,000 3,500 $ 109.68 Total 315,000 Average price $ 109.68 At December 31, 2014 , the Company had the following derivatives related to gasoline purchases in its fuel products segment, none of which are designated as hedges: Gasoline Swap Contracts by Expiration Dates Barrels Purchased BPD Average Swap First Quarter 2015 45,000 500 $ 78.12 Total 45,000 Average price $ 78.12 At December 31, 2014 , the Company had the following derivatives related to gasoline sales in its fuel products segment, none of which are designated as hedges: Gasoline Swap Contracts by Expiration Dates Barrels Sold BPD Average Swap ($/Bbl) First Quarter 2015 45,000 500 $ 111.72 Total 45,000 Average price $ 111.72 Gasoline Crack Spread Swap Contracts At December 31, 2015 , the Company had the following derivatives related to gasoline crack spread sales in its fuel products segment, none of which are designated as hedges: Gasoline Crack Spread Swap Contracts by Expiration Dates Barrels Sold BPD Average Swap First Quarter 2016 873,000 9,593 $ 8.98 Total 873,000 Average price $ 8.98 Diesel Swap Contracts At December 31, 2014 , the Company had the following derivatives related to diesel purchases in its fuel products segment, none of which are designated as hedges: Diesel Swap Contracts by Expiration Dates Barrels Purchased BPD Average Swap ($/Bbl) First Quarter 2015 1,449,000 16,100 $ 105.78 Total 1,449,000 Average price $ 105.78 At December 31, 2014 , the Company had the following derivatives related to diesel sales in its fuel products segment, none of which are designated as hedges: Diesel Swap Contracts by Expiration Dates Barrels Sold BPD Average Swap First Quarter 2015 1,449,000 16,100 $ 116.27 Second Quarter 2015 91,000 1,000 $ 117.92 Third Quarter 2015 322,000 3,500 $ 95.04 Fourth Quarter 2015 322,000 3,500 $ 95.04 Calendar Year 2016 915,000 2,500 $ 104.32 Total 3,099,000 Average price $ 108.38 Diesel Percentage Basis Crack Spread Swap Contracts The Company has entered into derivative instruments to secure a fixed percentage of gross profit on diesel in excess of the floating value of NYMEX WTI crude oil. At December 31, 2014 , the Company had the following diesel percentage basis crack spread swap contracts in its fuel products segment, none of which are designated as hedges: Diesel Percentage Basis Crack Spread Swap Contracts by Expiration Dates Barrels Sold BPD Average % of WTI/Bbl Third Quarter 2015 414,000 4,500 33.2 % Fourth Quarter 2015 414,000 4,500 33.2 % Calendar Year 2016 1,647,000 4,500 31.7 % Total 2,475,000 Average percentage 32.2 % Jet Fuel Swap Contracts At December 31, 2014 , the Company had the following derivatives related to jet fuel purchases in its fuel products segment, none of which are designated as cash flow hedges: Jet Fuel Swap Contracts by Expiration Dates Barrels Purchased BPD Average Swap ($/Bbl) First Quarter 2015 180,000 2,000 $ 100.91 Total 180,000 Average price $ 100.91 At December 31, 2014 , the Company had the following derivatives related to jet fuel sales in its fuel products segment, none of which are designated as cash flow hedges: Jet Fuel Swap Contracts by Expiration Dates Barrels Sold BPD Average Swap ($/Bbl) First Quarter 2015 180,000 2,000 $ 115.65 Total 180,000 Average price $ 115.65 Natural Gas Swap Contracts At December 31, 2015 , the Company had the following derivatives related to natural gas purchases in its fuel products segment, none of which are designated as hedges: Natural Gas Swap Contracts by Expiration Dates MMBtu $/MMBtu First Quarter 2016 603,000 $ 3.01 Second Quarter 2016 603,000 $ 2.99 Third Quarter 2016 606,000 $ 3.03 Fourth Quarter 2016 790,000 $ 3.02 Total 2,602,000 Average price $ 3.01 Platinum Swap Contracts At December 31, 2014 , the Company had approximately 1,900 troy ounces of platinum swap contracts through 2015 in its fuel products segment, none of which are designated as hedges. |