Trecora Resources (TREC) 10-Q 4 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 01, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	TRECORA RESOURCES
Entity Central Index Key	7,039
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		24,322,625
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018

CONSOLIDATED BALANCE SHEETS (un

CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Current Assets
Cash	$ 2,568	$ 3,028
Trade receivables, net	27,421	25,779
Insurance receivable	742	0
Inventories	15,691	18,450
Prepaid expenses and other assets	5,131	4,424
Taxes receivable	5,481	5,584
Total current assets	57,034	57,265
Plant, pipeline and equipment, net	190,139	181,742
Goodwill	21,798	21,798
Intangible assets, net	20,343	20,808
Investment in AMAK	45,224	45,125
Mineral properties in the United States	588	588
TOTAL ASSETS	335,126	327,326
Current Liabilities
Accounts payable	14,888	18,347
Accrued liabilities	4,229	3,961
Current portion of post-retirement benefit	302	305
Current portion of long-term debt	8,061	8,061
Current portion of other liabilities	889	870
Total current liabilities	28,369	31,544
Long-term debt, net of current portion	99,031	91,021
Post-retirement benefit, net of current portion	897	897
Other liabilities, net of current portion	1,374	1,611
Deferred income taxes	17,670	17,242
Total liabilities	147,341	142,315
EQUITY
Common stock-authorized 40 million shares of $.10 par value; issued 24.5 million in 2018 and 2017 and outstanding 24.3 million shares in 2018 and 2017	2,451	2,451
Additional paid-in capital	56,422	56,012
Common stock in treasury, at cost	(184)	(196)
Retained earnings	128,807	126,455
Total Trecora Resources Stockholders' Equity	187,496	184,722
Noncontrolling Interest	289	289
Total equity	187,785	185,011
TOTAL LIABILITIES AND EQUITY	$ 335,126	$ 327,326

CONSOLIDATED BALANCE SHEETS (u3

CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - $ / shares shares in Millions	Mar. 31, 2018	Dec. 31, 2017
EQUITY
Common stock, shares authorized (in shares)	40	40
Common stock, par value (in dollars per share)	$ 0.10	$ 0.10
Common stock, shares issued (in shares)	24.5	24.5
Common stock, shares outstanding (in shares)	24.3	24.3

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
REVENUES
Petrochemical and Product Sales	$ 66,699	$ 50,899
Processing Fees	5,042	4,643
Total Revenues	71,741	55,542
OPERATING COSTS AND EXPENSES
Cost of Sales and Processing (including depreciation and amortization of $2,830 and $2,383, respectively)	61,601	44,924
GROSS PROFIT	10,140	10,618
GENERAL AND ADMINISTRATIVE EXPENSES
General and Administrative	6,335	6,221
Depreciation	196	205
Total General and Administrative Expenses	6,531	6,426
OPERATING INCOME	3,609	4,192
OTHER INCOME (EXPENSE)
Interest Income	7	2
Interest Expense	(878)	(636)
Equity in Earnings (Losses) of AMAK	230	(966)
Miscellaneous expense	(26)	(44)
Total other income (expense)	(667)	(1,644)
INCOME BEFORE INCOME TAXES	2,942	2,548
INCOME TAXES	590	1,061
NET INCOME	2,352	1,487
NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST	0	0
NET INCOME ATTRIBUTABLE TO TRECORA RESOURCES	$ 2,352	$ 1,487
Basic Earnings per Common Share
Net Income Attributable to Trecora Resources (in dollars per share)	$ 0.10	$ 0.06
Basic Weighted Average Number of Common Shares Outstanding (in shares)	24,343	24,240
Diluted Earnings per Common Share
Net Income Attributable to Trecora Resources (in dollars per share)	$ 0.09	$ 0.06
Diluted Weighted Average Number of Common Shares Outstanding (in shares)	25,231	25,054

CONSOLIDATED STATEMENTS OF INC5

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
OPERATING COSTS AND EXPENSES
Depreciation and amortization included in the cost of petrochemical, product sales, and processing	$ 2,830	$ 2,383

CONSOLIDATED STATEMENT OF STOCK

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (UNAUDITED) - 3 months ended Mar. 31, 2018 - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Additional Paid-In Capital [Member]	Treasury Stock [Member]	Retained Earnings [Member]	Total [Member]	Non-Controlling Interest [Member]	Total
Balance at Dec. 31, 2017	$ 2,451	$ 56,012	$ (196)	$ 126,455	$ 184,722	$ 289	$ 185,011
Balance (in shares) at Dec. 31, 2017	24,311						24,300
Stock Options
Issued to Directors	$ 0	(10)	0	0	(10)	0	$ (10)
Issued to Employees	0	154	0	0	154	0	154
Restricted Stock Units
Issued to Directors	0	93	0	0	93	0	93
Issued to Employees	0	349	0	0	349	0	349
Common Stock
Issued to Directors	0	(63)	24	0	(39)	0	(39)
Issued to Employees	0	(39)	44	0	5	0	5
Stock Exchange (see Notes 8 & 16)	0	(65)	(65)	0	(130)	0	(130)
Warrants	0	(9)	9	0	0	0	0
Net Income	0	0	0	2,352	2,352	0	2,352
Balance at Mar. 31, 2018	$ 2,451	$ 56,422	$ (184)	$ 128,807	$ 187,496	$ 289	$ 187,785
Balance (in shares) at Mar. 31, 2018	24,311						24,300

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
OPERATING ACTIVITIES
Net Income	$ 2,352	$ 1,487
Adjustments to Reconcile Net Income To Net Cash Provided by Operating Activities:
Depreciation and Amortization	2,561	2,123
Amortization of Intangible Assets	465	465
Unrealized Gain on Derivative Instruments	0	(24)
Share-based Compensation	592	633
Deferred Income Taxes	428	1,178
Postretirement Obligation	(3)	(2)
Equity in (Earnings) Losses of AMAK	(230)	966
Bad Debt Expense	128	0
Amortization of Loan Fees	93	68
Changes in Operating Assets and Liabilities:
Increase in Trade Receivables	(1,770)	(2,056)
Increase in Insurance Receivables	(742)	0
(Increase) Decrease in Taxes Receivable	102	(160)
Decrease in Inventories	2,759	2,914
(Increase) Decrease in Prepaid Expenses and Other Assets	(803)	79
Increase (Decrease) in Accounts Payable and Accrued Liabilities	(3,190)	989
Increase (Decrease) in Other Liabilities	(7)	70
Net Cash Provided by Operating Activities	2,735	8,730
INVESTING ACTIVITIES
Additions to Plant, Pipeline and Equipment	(11,028)	(13,881)
Advances to AMAK, net	(44)	(26)
Cash Used in Investing Activities	(11,072)	(13,907)
FINANCING ACTIVITIES
Payments Related to Tax Withholding for Stock-based Compensation	(40)	0
Addition to Long-Term Debt	10,000	5,000
Repayment of Long-Term Debt	(2,083)	(4,167)
Net Cash Provided by Financing Activities	7,877	833
NET DECREASE IN CASH	(460)	(4,344)
CASH AT BEGINNING OF PERIOD	3,028	8,389
CASH AT END OF PERIOD	2,568	4,045
Supplemental disclosure of cash flow information:
Cash payments for interest	1,124	936
Cash payments for taxes, net of refunds	0	0
Supplemental disclosure of non-cash items:
Capital expansion amortized to depreciation expense	210	161
Stock exchange (Notes 8 & 16)	$ 130	$ 0

GENERAL

GENERAL	3 Months Ended
	Mar. 31, 2018
GENERAL [Abstract]
GENERAL	1. GENERAL Organization Trecora Resources (the "Company"), was incorporated in the State of Delaware in 1967. Our principal business activities are the manufacturing of various specialty hydrocarbons and synthetic waxes and the provision of custom processing services. Unless the context requires otherwise, references to "we," "us," "our," and the "Company" are intended to mean Trecora Resources and its subsidiaries. This document includes the following abbreviations: (1) TREC – Trecora Resources (2) TOCCO – Texas Oil & Chemical Co. II, Inc. – Wholly owned subsidiary of TREC and parent of SHR and TC (3) SHR – South Hampton Resources, Inc. – Petrochemical segment and parent of GSPL (4) GSPL – Gulf State Pipe Line Co, Inc. – Pipeline support for the petrochemical segment (5) TC – Trecora Chemical, Inc. – Specialty wax segment (6) AMAK – Al Masane Al Kobra Mining Company – Mining equity investment – 33% ownership (7) PEVM – Pioche Ely Valley Mines, Inc. – Inactive mine - 55% ownership Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") for interim financial information and in conformity with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these unaudited financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and, therefore, should be read in conjunction with the financial statements and related notes contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. The unaudited condensed financial statements included in this document have been prepared on the same basis as the annual condensed financial statements and in management's opinion reflect all adjustments, including normal recurring adjustments, necessary to present fairly the Company's financial position, results of operations and cash flows for the interim periods presented. We have made estimates and judgments affecting the amounts reported in this document. The actual results that we experience may differ materially from our estimates. In the opinion of management, the disclosures included in these financial statements are adequate to make the information presented not misleading. Operating results for the three months ended March 31, 2018, are not necessarily indicative of results for the year ending December 31, 2018. We currently operate in two segments, specialty petrochemical products and specialty synthetic waxes. All revenue originates from United States' sources, and all long-lived assets owned are located in the United States. In addition, we own a 33% interest in AMAK, a Saudi Arabian closed joint stock company which owns, operates and is developing mining assets in Saudi Arabia. We account for our investment under the equity method of accounting. See Note 16. Revenue Recognition The Company adopted Financial Accounting Standards Board ("FASB") ASC Topic 606 ("ASC 606"), Revenue from Contracts with Customers and its amendments Revenue The Company applied the modified retrospective approach under ASC 606 which allows for the cumulative effect of adopting the new guidance on the date of initial application. Use of the modified retrospective approach means the Company's comparative periods prior to initial application are not restated. The initial application was applied to all contracts at the date of the initial application. The Company has determined that the adjustments using the modified retrospective approach did not have a material impact on the date of the initial application along with the disclosure of the effect on prior periods. Accounting Policy Beginning on January 1, 2018, revenue is measured based on a consideration specified in a contract with a customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. In evaluating when a customer has control of the asset we primarily consider whether the transfer of legal title and physical delivery has occurred, whether the customer has significant risks and rewards of ownership, and whether the customer has accepted delivery and a right to payment exists. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of product sales and processing. The Company does not offer material rights of return or service-type warranties. For the three months ended March 31, 2017 the Company recognized revenue according to FASB ASC Topic 605, " Revenue Recognition" Nature of goods and services The following is a description of principal activities – separated by reportable segments – from which the Company generates its revenue. For more detailed information about reportable segments, disaggregation of revenues, and contract balance disclosures, see Note 14. Petrochemical segment The petrochemical segment of the Company produces eight high purity hydrocarbons and other petroleum based products including isopentane, normal pentane, isohexane and hexane. These products are used in the production of polyethylene, packaging, polypropylene, expandable polystyrene, poly-iso/urethane foams, crude oil from the Canadian tar sands, and in the catalyst support industry. SHR's petrochemical products are typically transported to customers by rail car, tank truck, iso-container and ship. Product Sales - The Company sells individual (distinct) products to its customers on a stand-alone basis (point-of-sale) without any further integration. There is no significant modification of any one or more products sold to fulfill another promised product or service within any of the Company's product sale transactions. The amount of consideration received for product sales is stated within the executed invoice with the customer. Payment is typically due and collected 30 to 60 days subsequent to point of sale. Processing Fees - The Company's promised services consist of processing customer supplied feedstocks into custom products including, if requested, services for forming, packaging, and arranging shipping. Pursuant to Tolling Agreements the customer retains title to the feedstocks and processed products. The performance obligation in each Tolling Agreement transaction is the processing of customer provided feedstocks into custom products and is satisfied over time. The amount of consideration received for product sales is stated within the executed invoice with the customer. Payment is typically due and collected within 30 days subsequent to point of sale. Specialty Wax segment The specialty wax segment of the Company manufactures and sells specialty polyethylene and poly alpha olefin waxes and also provides custom processing services for customers. Product Sales - The Company sells individual (distinct) products to its customers on a stand-alone basis (point-of-sale) without any further integration. There is no significant modification of any one or more products sold to fulfill another promised product or service within any of the Company's product sale transactions. The amount of consideration received for product sales is stated within the executed invoice with the customer. Payment is typically due and collected within 30 days subsequent to point of sale. Processing Fees - The Company's promised services consist of processing customer supplied feedstocks into custom products including, if requested, services for forming, packaging, and arranging shipping. Pursuant to Tolling Agreements and Purchase Order Arrangements, the customer typically retains title to the feedstocks and processed products. The performance obligation in each Tolling Agreement transaction and Purchase Order Arrangement is the processing of customer provided feedstocks into custom products and is satisfied over time. The amount of consideration received for product sales is stated within the executed invoice with the customer. Payment is typically due and collected within 30 days subsequent to point of sale.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	3 Months Ended
	Mar. 31, 2018
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	2. RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers Revenue Recognition Revenue from Contracts with Customers In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), In February 2018, the FASB issued ASU No. 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

TRADE RECEIVABLES

TRADE RECEIVABLES	3 Months Ended
	Mar. 31, 2018
TRADE RECEIVABLES [Abstract]
TRADE RECEIVABLES	3. TRADE RECEIVABLES Trade receivables, net, consisted of the following: March 31, 2018 December 31, 2017 (thousands of dollars) Trade receivables $ 27,849 $ 26,079 Less allowance for doubtful accounts (428 ) (300 ) Trade receivables, net $ 27,421 $ 25,779 Trade receivables serves as collateral for our amended and restated credit agreement. See Note 10.

PREPAID EXPENSES AND OTHER ASSE

PREPAID EXPENSES AND OTHER ASSETS	3 Months Ended
	Mar. 31, 2018
PREPAID EXPENSES AND OTHER ASSETS [Abstract]
PREPAID EXPENSES AND OTHER ASSETS	4. PREPAID EXPENSES AND OTHER ASSETS Prepaid expenses and other assets consisted of the following: March 31, 2018 December 31, 2017 (thousands of dollars) Prepaid license $ 1,919 $ 1,919 Prepaid catalyst 723 779 Prepaid insurance 92 - Spare parts 1,100 954 Other prepaid expenses and assets 1,297 772 Total $ 5,131 $ 4,424

INVENTORIES

INVENTORIES	3 Months Ended
	Mar. 31, 2018
INVENTORIES [Abstract]
INVENTORIES	5. INVENTORIES Inventories included the following: March 31, 2018 December 31, 2017 (thousands of dollars) Raw material $ 2,612 $ 3,703 Work in process 51 27 Finished products 13,028 14,720 Total inventory $ 15,691 $ 18,450 Inventory serves as collateral for our amended and restated credit agreement. See Note 10. Inventory included petrochemical products in transit valued at approximately $4.0 million and $3.7 million at March 31, 2018, and December 31, 2017, respectively.

PLANT, PIPELINE AND EQUIPMENT

PLANT, PIPELINE AND EQUIPMENT	3 Months Ended
	Mar. 31, 2018
PLANT, PIPELINE AND EQUIPMENT [Abstract]
PLANT, PIPELINE AND EQUIPMENT	6. PLANT, PIPELINE AND EQUIPMENT Plant, pipeline and equipment consisted of the following: March 31, 2018 December 31, 2017 (thousands of dollars) Platinum catalyst metal $ 1,612 $ 1,612 Land 5,428 5,428 Plant, pipeline and equipment 188,529 186,946 Construction in progress 60,441 50,996 Total plant, pipeline and equipment 256,010 244,982 Less accumulated depreciation (65,871 ) (63,240 ) Net plant, pipeline and equipment $ 190,139 $ 181,742 Plant, pipeline, and equipment serve as collateral for our amended and restated credit agreement. See Note 10. Interest capitalized for construction was approximately $304,000 and $374,000 for the three months ended March 31, 2018 and 2017, respectively. Labor capitalized for construction was approximately $1.2 million and $0.8 million for the three months ended March 31, 2018, and 2017, respectively. Construction in progress during the first three months of 2018 included equipment purchased for various equipment updates at the TC facility; new reformer unit, tankage upgrades, and an addition to the rail spur at SHR. Amortization relating to the platinum catalyst which is included in cost of sales was approximately $0 and $25,000 for the three months ended March 31, 2018 and 2017, respectively.

GOODWILL AND INTANGIBLE ASSETS,

GOODWILL AND INTANGIBLE ASSETS, NET	3 Months Ended
	Mar. 31, 2018
GOODWILL AND INTANGIBLE ASSETS, NET [Abstract]
GOODWILL AND INTANGIBLE ASSETS, NET	7. GOODWILL AND INTANGIBLE ASSETS, NET Goodwill and intangible assets were recorded in relation to the acquisition of TC on October 1, 2014. The following tables summarize the gross carrying amounts and accumulated amortization of intangible assets by major class (in thousands): March 31, 2018 Intangible assets subject to amortization (Definite-lived) Gross Accumulated Amortization Net Customer relationships $ 16,852 $ (3,932 ) $ 12,920 Non-compete agreements 94 (66 ) 28 Licenses and permits 1,471 (416 ) 1,055 Developed technology 6,131 (2,146 ) 3,985 24,548 (6,560 ) 17,988 Intangible assets not subject to amortization (Indefinite-lived) Emissions Allowance 197 - 197 Trade name 2,158 - 2,158 Total $ 26,903 $ (6,560 ) $ 20,343 December 31, 2017 Intangible assets subject to amortization (Definite-lived) Gross Accumulated Amortization Net Customer relationships $ 16,852 $ (3,651 ) $ 13,201 Non-compete agreements 94 (61 ) 33 Licenses and permits 1,471 (390 ) 1,081 Developed technology 6,131 (1,993 ) 4,138 24,548 (6,095 ) 18,453 Intangible assets not subject to amortization (Indefinite-lived) Emissions Allowance 197 - 197 Trade name 2,158 - 2,158 Total $ 26,903 $ (6,095 ) $ 20,808 Amortization expense for intangible assets included in cost of sales for the three months ended March 31, 2018, and 2017, was approximately $465,000 and $465,000, respectively. Based on identified intangible assets that are subject to amortization as of March 31, 2018, we expect future amortization expenses for each period to be as follows (in thousands): Total Remainder of 2018 2019 2020 2021 2022 2023 Thereafter Customer relationships $ 12,920 $ 843 $ 1,123 $ 1,123 1,123 1,123 1,123 $ 6,462 Non-compete agreements 28 14 14 - - - - - Licenses and permits 1,055 79 106 106 101 86 86 491 Developed technology 3,985 460 613 613 613 613 613 460 Total future amortization expense $ 17,988 $ 1,396 $ 1,856 $ 1,842 $ 1,837 $ 1,822 $ 1,822 $ 7,413

NET INCOME PER COMMON SHARE ATT

NET INCOME PER COMMON SHARE ATTRIBUTABLE TO TRECORA RESOURCES	3 Months Ended
	Mar. 31, 2018
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO TRECORA RESOURCES [Abstract]
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO TRECORA RESOURCES	8. NET INCOME PER COMMON SHARE ATTRIBUTABLE TO TRECORA RESOURCES The following table (in thousands, except per share amounts) sets forth the computation of basic and diluted net income per share attributable to Trecora Resources for the three months ended March 31, 2018 and 2017, respectively. Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 Per Share Per Share Income Shares Amount Income Shares Amount Basic Net Income per Share: Net Income Attributable to Trecora Resources $ 2,352 24,343 $ 0.10 $ 1,487 24,240 $ 0.06 Unvested restricted stock units 403 321 Dilutive stock options outstanding 485 493 Diluted Net Income per Share: Net Income Attributable to Trecora Resources $ 2,352 25,231 $ 0.09 $ 1,487 25,054 $ 0.06 At March 31, 2018 and 2017, respectively, 1,242,160 and 1,344,087 potential common stock shares, respectively were issuable upon the exercise of options and warrants. In first quarter 2018, we completed an exchange of shares with some Saudi Arabian shareholders whereby they traded 65,000 shares of TREC stock in exchange for 24,489 shares of our AMAK stock. The 65,000 shares were accounted for as treasury stock.

ACCRUED LIABILITIES

ACCRUED LIABILITIES	3 Months Ended
	Mar. 31, 2018
ACCRUED LIABILITIES [Abstract]
ACCRUED LIABILITIES	9. ACCRUED LIABILITIES Accrued liabilities consisted of the following: March 31, 2018 December 31, 2017 (thousands of dollars) Accrued state taxes $ 332 $ 272 Accrued property taxes 703 - Accrued payroll 983 1,407 Accrued interest 31 30 Accrued officer compensation 300 500 Other 1,880 1,752 Total $ 4,229 $ 3,961

LIABILITIES AND LONG-TERM DEBT

LIABILITIES AND LONG-TERM DEBT	3 Months Ended
	Mar. 31, 2018
LIABILITIES AND LONG-TERM DEBT [Abstract]
LIABILITIES AND LONG-TERM DEBT	10. LIABILITIES AND LONG-TERM DEBT On October 1, 2014, we entered into an Amended and Restated Credit Agreement ("ARC") with the lenders which from time to time are parties to the ARC and Bank of America, N.A., as Administrative Agent for the Lenders, and Merrill Lynch, Pierce, Fenner & Smith Incorporated as Lead Arranger. On March 28, 2017, we entered into a Second Amendment to the ARC with terms which increase the Maximum Consolidated Leverage Ratio financial covenant of 3.25x to 4.00x at March 31, 2017, and 4.25x at June 30, 2017, before stepping down to 3.75x at September 30, 2017, 3.50x at December 31, 2017, and reverting to the original financial covenant of 3.25x at March 31, 2018. For Fiscal Quarter Ending Maximum Consolidated Leverage Ratio March 31, 2017 4.00 to 1.00 June 30, 2017 4.25 to 1.00 September 30, 2017 3.75 to 1.00 December 31, 2017 3.50 to 1.00 March 31, 2018 and each fiscal quarter thereafter 3.25 to 1.00 The Second Amendment also reduces the Minimum Consolidated Fixed Charge Coverage Ratio of 1.25x to 1.10x at March 31, 2017, 1.05x at June 30, 2017 and September 30, 2017, 1.10x at December 31, 2017, before reverting to the original financial covenant of 1.25x at March 31, 2018. For Fiscal Quarter Ending Minimum Consolidated Fixed Charge Coverage Ratio March 31, 2017 1.10 to 1.00 June 30, 2017 1.05 to 1.00 September 30, 2017 1.05 to 1.00 December 31, 2017 1.10 to 1.00 March 31, 2018 and each fiscal quarter thereafter 1.25 to 1.00 Also, under the terms of the Second Amendment, two additional levels of pricing were added – levels 4 and 5. Level Consolidated Leverage Ratio LIBOR Margin Base Rate Margin Commitment Fee 1 Less than 1.50 to 1.00 2.00% 1.00% 0.25% 2 Greater than or equal to 1.50 to 1.00 but less than 2.00 to 1.00 2.25% 1.25% 0.25% 3 Greater than or equal to 2.00 to 1.00 but less than 3.00 to 1.00 2.50% 1.50% 0.375% 4 Greater than or equal to 3.00 to 1.00 but less than 3.50 to 1.00 2.75% 1.75% 0.375% 5 Greater than or equal to 3.50 to 1.00 3.00% 2.00% 0.375% We were in compliance with all covenants at March 31, 2018. On July 25, 2017, TOCCO, SHR, GSPL, and TC (SHR, GSPL and TC collectively, the "Guarantors") entered into a Third Amendment to Amended and Restated Credit Agreement ("3rd Amendment") with the lenders which from time to time are parties to the Amended and Restated Credit Agreement (collectively, the "Lenders") and Bank of America, N.A., a national banking association, as Administrative Agent for the Lenders. The 3rd Amendment increased the Revolving Facility from $40.0 million to $60.0 million. There were no other changes to the Revolving Facility. Under the ARC as amended, we have a $60.0 million revolving line of credit which matures on October 1, 2019. As of March 31, 2018, and December 31, 2017, there was a long-term amount of $45.0 million and $35.0 million outstanding, respectively. The interest rate on the loan varies according to several options. Interest on the loan is paid monthly and a commitment fee of between 0.25% and 0.375% is due quarterly on the unused portion of the loan. At March 31, 2018, approximately $14.9 million was available to be drawn; however, only $10.0 million could be drawn while maintaining compliance with our covenants. Under the ARC, we also borrowed $70.0 million in a single advance term loan (the "Acquisition Loan") to partially finance the acquisition of TC. Interest on the Acquisition Loan is payable quarterly using a ten-year commercial style amortization. Principal is also payable on the last business day of each March, June, September and December in an amount equal to $1.8 million, provided that the final installment on the September 30, 2019, maturity date shall be in an amount equal to the then outstanding unpaid principal balance of the Acquisition Loan. At March 31, 2018, there was a short-term amount of $7.0 million and a long-term amount of $38.5 million outstanding. At December 31, 2017, there was a short-term amount of $7.0 million and a long-term amount of $40.3 million outstanding. Under the ARC, we also had the right to borrow $25.0 million in a multiple advance loan ("Term Loans"). Borrowing availability under the Term Loans ended on December 31, 2015. The Term Loans converted from a multiple advance loan to a "mini-perm" loan once certain obligations were fulfilled such as certification that construction of D-Train was completed in a good and workmanlike manner, receipt of applicable permits and releases from governmental authorities, and receipt of releases of liens from the contractor and each subcontractor and supplier. Interest on the Term Loans is paid monthly. Principal is also payable on the last business day of each March, June, September and December in an amount equal to $0.3 million, provided that the final installment on the September 30, 2019, maturity date shall be in an amount equal to the then outstanding unpaid principal balance of the Term Loans. At March 31, 2018, there was a short-term amount of $1.3 million and a long-term amount of $15.7 million outstanding. At December 31, 2017, there was a short-term amount of $1.3 million and a long-term amount of $16.0 million outstanding. Debt issuance costs of approximately $0.4 million and $0.5 million for the periods ended March 31, 2018, and December 31, 2017, have been netted against outstanding loan balances. The interest rate on all of the above loans varies according to several options as defined in the ARC. At March 31, 2018, and December 31, 2017, the rate was 4.38% and 4.07%, respectively. The following table summarizes the carrying amounts and debt issuance costs of our long-term debt (in thousands): March 31, 2018 December 31, 2017 Acquisition loan $ 45,500 $ 47,250 Term loan 17,000 17,333 Revolving facility 45,000 35,000 Total 107,500 99,583 Debt issuance costs (408 ) (501 ) Total long-term debt $ 107,092 $ 99,082 Less current portion including loan fees 8,061 8,061 Total long-term debt, less current portion including loan fees $ 99,031 $ 91,021

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2018
FAIR VALUE MEASUREMENTS [Abstract]
FAIR VALUE MEASUREMENTS	11. FAIR VALUE MEASUREMENTS The carrying value of cash, trade receivables, accounts payable, accrued liabilities, and other liabilities approximate fair value due to the immediate or short-term maturity of these financial instruments. The fair value of variable rate long term debt reflects recent market transactions and approximate carrying value. We used other observable inputs that would qualify as Level 2 inputs to make our assessment of the approximate fair value of our cash, trade receivables, accounts payable, accrued liabilities, other liabilities and variable rate long term debt. The fair value of the derivative instruments are described below. Interest Rate Swap In March 2008 we entered into an interest rate swap agreement with Bank of America related to a $10.0 million term loan secured by plant, pipeline and equipment. The interest rate swap was designed to minimize the effect of changes in the London InterBank Offered Rate ("LIBOR") rate. We had designated the interest rate swap as a cash flow hedge under ASC Topic 815, Derivatives and Hedging We assessed the fair value of the interest rate swap using a present value model that includes quoted LIBOR rates and the nonperformance risk of the Company and Bank of America based on the Credit Default Swap Market (Level 2 of fair value hierarchy). We have consistently applied valuation techniques in all periods presented and believe we have obtained the most accurate information available for the types of derivative contracts we hold. The agreement terminated in December 2017; therefore, there was no outstanding liability at March 31, 2018, or December 31, 2017. See discussion of our derivative instruments in Note 12.

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	3 Months Ended
	Mar. 31, 2018
DERIVATIVE INSTRUMENTS [Abstract]
DERIVATIVE INSTRUMENTS	12. DERIVATIVE INSTRUMENTS Interest Rate Swap On March 21, 2008, SHR entered into a pay-fixed, receive-variable interest rate swap agreement with Bank of America related to the $10.0 million (later increased to $14 million) term loan secured by plant, pipeline and equipment. The effective date of the interest rate swap agreement was August 15, 2008, and terminated on December 15, 2017. We received credit for payments of variable rate interest made on the term loan at the loan's variable rates, which are based upon the LIBOR, and paid Bank of America an interest rate of 5.83% less the credit on the interest rate swap. We originally designated the transaction as a cash flow hedge according to ASC Topic 815, Derivatives and Hedging. Beginning on August 15, 2008, the derivative instrument was reported at fair value with any changes in fair value reported within other comprehensive income (loss) in the Company's Statement of Stockholders' Equity. We entered into the interest rate swap to minimize the effect of changes in the LIBOR rate. Due to the new debt agreements associated with the Acquisition, we believed that the hedge was no longer entirely effective. Due to the time required to make the determination and the immateriality of the hedge, we began treating the interest rate swap as ineffective as of October 1, 2014.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	3 Months Ended
	Mar. 31, 2018
STOCK-BASED COMPENSATION [Abstract]
STOCK-BASED COMPENSATION	13. STOCK-BASED COMPENSATION Stock-based compensation of approximately $592,000 and $633,000 during the three months ended March 31, 2018, and 2017, respectively, was recognized. Restricted Stock Awards On January 17, 2018, we awarded 251 shares of restricted stock to an officer at a grant date price of $13.85. The stock was immediately vested. Compensation expense recognized during the three months ended March 31, 2018, was $5,000. Restricted Stock Unit Awards On February 20, 2018, we awarded approximately 102,000 shares of restricted stock units to officers at a grant date price of $12.15. One-half of the restricted stock units vest ratably over three years. The other half vests at the end of three years based upon the performance metrics of return on invested capital and earnings per share growth. The number of shares actually granted will be adjusted based upon relative performance to our peers. Compensation expense recognized during the three months ended March 31, 2018, was approximately $36,000. Officer compensation of approximately $112,000 and $0 during the three months March 31, 2018, and 2017, respectively, was recognized related to restricted stock unit awards granted to officers vesting through 2020. Director compensation of approximately $84,000 and $81,000 during the three months March 31, 2018, and 2017, respectively, was recognized related to restricted stock unit awards granted to directors vesting through 2020. Officer compensation of approximately $97,000 and $105,000 was recognized during the three months ended March 31, 2018, and 2017, respectively, related to restricted stock unit awards granted to officers. One-half of the restricted stock units vest ratably over three years. The other half vests at the end of the three years based upon the performance metrics of return on invested capital and earnings per share growth. The number of shares actually granted will be adjusted based upon relative performance to our peers. Employee compensation of approximately $104,000 and $108,000 during the three months ended March 31, 2018, and 2017, respectively, was recognized related to restricted stock units with a four year vesting period which was awarded to officers. This restricted stock vests through 2019. Restricted stock units activity in the first three months of 2018 was as follows: Shares of Restricted Stock Units Weighted Average Grant Date Price per Share Outstanding at January 1, 2018 387,702 $ 11.39 Granted 102,317 $ 12.15 Forfeited (34,585 ) $ 10.97 Vested (51,998 ) $ 12.34 Outstanding at March 31, 2018 403,436 $ 11.50 Stock Option and Warrant Awards A summary of the status of our stock option awards and warrants is presented below: Number of Stock Options & Warrants Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Life Outstanding at January 1, 2018 1,323,587 $ 7.82 Granted -- -- Exercised (81,427 ) 6.26 Forfeited -- -- Outstanding at March 31, 2018 1,242,160 $ 7.93 4.1 Exercisable at March 31, 2018 1,042,160 $ 8.80 4.7 The fair value of the options granted were calculated using the Black Scholes option valuation model with the assumptions as disclosed in prior quarterly and annual filings. Directors' compensation of approximately $0 and $30,000 during the three months ended March 31, 2018, and 2017, respectively, was recognized related to options to purchase shares vesting through 2017. Employee compensation of approximately $154,000 and $309,000 during the three months ended March 31, 2018, and 2017, respectively, was recognized related to options with a four- year vesting period which were awarded to officers and key employees. These options vest through 2018. Post-retirement compensation of approximately $0 and $0 was recognized during the three months ended March 31, 2018, and 2017, related to options awarded to Mr. Hatem El Khalidi in July 2009. On May 9, 2010, the Board of Directors determined that Mr. El Khalidi forfeited these options and other retirement benefits when he made various demands against the Company and other AMAK Saudi shareholders which would benefit him personally and were not in the best interests of the Company and its shareholders. The Company is litigating its right to withdraw the options and benefits and as such, these options and benefits continue to be shown as outstanding. See further discussion in Note 18. See the Company's Annual Report on Form 10-K for the year ended December 31, 2017, for additional information.

SEGMENT INFORMATION

SEGMENT INFORMATION	3 Months Ended
	Mar. 31, 2018
SEGMENT INFORMATION [Abstract]
SEGMENT INFORMATION	14. SEGMENT INFORMATION We operate through business segments according to the nature and economic characteristics of our products as well as the manner in which the information is used internally by our key decision maker, who is our Chief Executive Officer. Segment data may include rounding differences. Our specialty petrochemical segment includes SHR and GSPL. Our specialty synthetic wax segment is TC. We also separately identify our corporate overhead which includes financing and administrative activities such as legal, accounting, consulting, investor relations, officer and director compensation, corporate insurance, and other administrative costs. Three Months Ended March 31, 2018 Petrochemical Specialty Wax Corporate Eliminations Consolidated (in thousands) Product sales $ 60,285 $ 6,383 $ - $ 31 $ 66,699 Processing fees 2,028 3,212 - (198 ) 5,042 Total revenues 62,313 9,595 - (167 ) 71,741 Operating profit (loss) before depreciation and amortization 8,393 390 (2,148 ) - 6,635 Operating profit (loss) 6,679 (914 ) (2,156 ) - 3,609 Profit (loss) before taxes 6,054 (1,181 ) (1,931 ) - 2,942 Depreciation and amortization 1,714 1,304 8 - 3,026 Capital expenditures 10,283 745 - - 11,028 Three Months Ended March 31, 2017 Petrochemical Specialty Wax Corporate Eliminations Consolidated (in thousands) Product sales $ 44,391 $ 6,508 $ - - $ 50,899 Processing fees 1,488 3,155 - - 4,643 Total revenues 45,879 9,663 - - 55,542 Operating profit (loss) before depreciation and amortization 8,214 745 (2,179 ) - 6,780 Operating profit (loss) 6,658 (271 ) (2,195 ) - 4,192 Profit (loss) before taxes 6,005 (290 ) (3,167 ) - 2,548 Depreciation and amortization 1,556 1,016 16 - 2,588 Capital expenditures 8,756 5,125 - - 13,881 March 31, 2018 Petrochemical Specialty Wax Corporate Eliminations Consolidated (in thousands) Trade receivables, product sales $ 21,495 $ 3,127 $ - $ 25 $ 24,647 Trade receivables, processing fees 1,018 1,841 - (85 ) 2,774 Goodwill and intangible assets, net - 42,141 - - 42,141 Total assets 275,063 117,297 97,543 (154,777 ) 335,126 December 31, 2017 Petrochemical Specialty Wax Corporate Eliminations Consolidated (in thousands) Trade receivables, product sales $ 20,211 $ 2,671 $ - $ - $ 22.882 Trade receivables, processing fees 983 1,914 - - 2,897 Goodwill and intangible assets, net - 42,606 - - 42,606 Total assets 265,213 117,579 97,880 (153,346 ) 327,326

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2018
INCOME TAXES [Abstract]
INCOME TAXES	15. INCOME TAXES We file an income tax return in the U.S. federal jurisdiction and a margin tax return in Texas. We received notification from the Internal Revenue Service ("IRS") in November 2016 that the December 31, 2014, tax return was selected for audit. In April 2017 the audit was expanded to include the year ended December 31, 2015, to review the refund claim related to research and development activities. We received notification from the IRS in March 2018 that audit was complete and acceptance of the refund claims resulting from the R&D credit for approximately $350,000. We also received notification that Texas will audit our R&D credit calculations for 2014 and 2015. We are in the process of submitting additional documentation to Texas. We do not expect any changes related to the Texas audit. Tax returns for various jurisdictions remain open for examination for the years 2014 through 2017. As of March 31, 2018, and December 31, 2017, we recognized no adjustment for uncertain tax positions. As of March 31, 2018, and December 31, 2017, no interest or penalties related to uncertain tax positions have been accrued. The effective tax rate varies from the federal statutory rate of 21% primarily as a result of state tax expense and stock based compensation for the three months ended March 31, 2018. The effective tax rate varies from the federal statutory rate of 35% primarily as a result of state tax expense and stock option based compensation offset by the manufacturing deduction for the three months ended March 31, 2017. We continue to maintain a valuation allowance against certain deferred tax assets where realization is not certain. On December 22, 2017, Public Law No. 115-97 known as the Tax Cuts and Jobs Act (TCJA) was enacted. The TCJA includes a number of changes to existing U.S. tax laws that impact the Company, most notably a reduction of the U.S. federal corporate income tax rate from a maximum of 35% to a flat 21% for tax years effective January 1, 2018. The TCJA also implements a territorial tax system, provides for a one-time deemed repatriation tax on unrepatriated foreign earnings, eliminates the alternative minimum tax (AMT), makes AMT credit carryforwards refundable, and permits the acceleration of depreciation for certain assets placed into service after September 27, 2017. In addition the TJCA creates prospective changes beginning in 2018, including repeal of the domestic manufacturing deduction, acceleration of tax revenue recognition, capitalization of research and development expenditures, additional limitations on executive compensation and limitations on the deductibility of interest. We have elected to recognize the income tax effects of the TCJA in our financial statements in accordance with Staff Accounting Bulletin 118 (SAB 118), which provides guidance for the application of ASC Topic 740 Income Taxes We have recognized the provisional tax impacts related to the acceleration of depreciation and included these amounts in our consolidated financial statements for the three months ended March 31, 2018. The ultimate impact may differ from these provisional amounts, possibly materially, due to, among other things, additional analysis, changes in interpretations and assumptions the we have made, additional regulatory guidance that may be issued, and actions we may take as a result of the TCJA . We did not identify items for which the income tax effects of the TCJA have not been completed and a reasonable estimate could not be determined as of March 31, 2018, and December 31, 2017. Subsequent to quarter end, we received income tax refunds of approximately $4.4 million that were listed as income tax receivable at March 31, 2018.

POST-RETIREMENT OBLIGATIONS

POST-RETIREMENT OBLIGATIONS	3 Months Ended
	Mar. 31, 2018
POST-RETIREMENT OBLIGATIONS [Abstract]
POST-RETIREMENT OBLIGATIONS	16. POST-RETIREMENT OBLIGATIONS In January 2008 an amended retirement agreement was entered into with Mr. Hatem El Khalidi; however, on May 9, 2010, the Board of Directors terminated the agreement due to actions of Mr. El Khalidi. See Notes 13 and 18. All amounts which have not met termination dates remain recorded until a resolution is achieved. As of March 31, 2018, and December 31, 2017, approximately $1.0 million remained outstanding and was included in post-retirement benefits. In July 2015 we entered into a retirement agreement with former CEO, Nicholas Carter. As of March 31, 2018, and December 31, 2017, approximately $0.2 million and $0.3 million, respectively, remained outstanding and was included in post-retirement obligations. See the Company's Annual Report on Form 10-K for the year ended December 31, 2017, for additional information.

INVESTMENT IN AMAK

INVESTMENT IN AMAK	3 Months Ended
	Mar. 31, 2018
INVESTMENT IN AMAK [Abstract]
INVESTMENT IN AMAK	17. INVESTMENT IN AMAK In first quarter 2018, we completed an exchange of shares with some Saudi Arabian shareholders whereby they traded 65,000 shares of TREC stock in exchange for 24,489 shares of our AMAK stock. The 65,000 shares were accounted for as treasury stock. This transaction reduced our ownership percentage from 33.44% to 33.41%. As of March 31, 2018, and December 31, 2017, the Company had a non-controlling equity interest of 33.4% in AMAK of approximately $45.2 million and $45.1 million, respectively. This investment is accounted for under the equity method. There were no events or changes in circumstances that may have an adverse effect on the fair value of our investment in AMAK at March 31, 2018. AMAK's financial statements were prepared in the functional currency of AMAK which is the Saudi Riyal (SR). In June 1986 the SR was officially pegged to the U. S. Dollar (USD) at a fixed exchange rate of 1 USD to 3.75 SR. The summarized results of operation and financial position for AMAK are as follows: Results of Operations Three Months Ended March 31, 2018 2017 (thousands of dollars) Sales $ 14,087 $ 2,256 Gross profit (loss) 1,581 (1,307 ) General, administrative and other expenses 1,900 2,589 Net Loss $ (319 ) $ (3,896 ) Depreciation and amortization was $7.7 million and $0.5 million for the three months ended March 31, 2018, and 2017, respectively. Therefore, net income before depreciation and amortization was as follows: Three Months Ended March 31, 2018 2017 (thousands of dollars) Net income (loss) before depreciation and amortization $ 7,382 $ (3,369 ) Financial Position March 31, December 31, 2018 2017 (thousands of dollars) Current assets $ 33,273 $ 23,333 Noncurrent assets 228,733 237,875 Total assets $ 262,006 $ 261,208 Current liabilities $ 22,873 $ 24,439 Long term liabilities 71,520 68,837 Shareholders' equity 167,613 167,932 $ 262,006 $ 261,208 The equity in the income or loss of AMAK reflected on the consolidated statements of income for the three months ended March 31, 2018, and 2017, is comprised of the following: Three months ended March 31, 2018 2017 (thousands of dollars) AMAK Net Loss $ (319 ) $ (3,896 ) Company's share of loss reported by AMAK $ (107 ) $ (1,303 ) Amortization of difference between Company's investment in AMAK and Company's share of net assets of AMAK 337 337 Equity in earnings (loss) of AMAK $ 230 $ (966 ) See our Annual Report on Form 10-K for the year ended December 31, 2017, for additional information. At March 31, 2018, and December 31, 2017, we had a receivable from AMAK of approximately $165,000 and $121,000, respectively, relating to unreimbursed travel and Board expenses which are included in prepaid and other assets. We did not advance any cash to AMAK during 2018.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2018
RELATED PARTY TRANSACTIONS [Abstract]
RELATED PARTY TRANSACTIONS	18. RELATED PARTY TRANSACTIONS Consulting fees of approximately $27,000 were incurred during the three months ended March 31, 2017, from IHS Global FZ LLC of which Company director Gary K Adams held the position of Chief Advisor – Chemicals until April 1, 2017. Consulting fees of approximately $31,000 and $19,000 were incurred during the three months ended March 31, 2018, and 2017, respectively, from our Executive Chairman, Nicholas Carter. Due to his history and experience with the Company and to provide continuity after his retirement, a three year consulting agreement was entered into with Mr. Carter in July 2015. In March 2018, a new consulting agreement was entered into with Mr. Carter effective through December 31, 2018, unless otherwise agreed by the Company and Mr. Carter.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2018
COMMITMENTS AND CONTINGENCIES [Abstract]
COMMITMENTS AND CONTINGENCIES	19. COMMITMENTS AND CONTINGENCIES Guarantees On October 24, 2010, we executed a limited Guarantee in favor of the Saudi Industrial Development Fund ("SIDF") whereby we agreed to guaranty up to 41% of the SIDF loan to AMAK in the principal amount of 330.0 million Saudi Riyals (US$88.0 million) (the "Loan"). The term of the loan is through June 2019. As a condition of the Loan, SIDF required all shareholders of AMAK to execute personal or corporate Guarantees; as a result, our guarantee is for approximately 135.33 million Saudi Riyals (US$36.1 million). The loan was necessary to continue construction of the AMAK facilities and provide working capital needs. We received no consideration in connection with extending the guarantee and did so to maintain and enhance the value of its investment. The total amount outstanding to the SIDF at March 31, 2018, was 305.0 million Saudi Riyals (US$81.3 million). AMAK has not made certain scheduled payments on their loan. They obtained a waiver from SIDF regarding the missed payments and are currently working with SIDF to renegotiate the terms and repayment schedule of the loan agreement. We do not believe that these events will result in any performance under our guarantee. Operating Lease Commitments We have operating leases for the rental of railcars, office space, and equipment with expiration dates through 2026. Rental expense for these operating leases for the three months ended March 31, 2018, and 2017, was $1.1 million and $0.8 million, respectively. Litigation On March 21, 2011, Mr. El Khalidi filed suit against the Company in Texas alleging breach of contract and other claims. The 88th Judicial District Court of Hardin County, Texas dismissed all claims and counterclaims for want of prosecution in this matter on July 24, 2013. The Ninth Court of Appeals subsequently affirmed the dismissal for want of prosecution and the Supreme Court of Texas denied Mr. El Khalidi's petition for review. On May 1, 2014, Mr. El Khalidi refiled his lawsuit against the Company for breach of contract and defamation in the 356th Judicial District Court of Hardin County, Texas. The case was transferred to the 88th Judicial District Court of Hardin County, Texas. The Trial Court dismissed all of Mr. El Khalidi's claims and causes of action with prejudice and the Ninth Court of Appeals affirmed. Mr. El Khalidi filed a petition for review with the Supreme Court of Texas, which was denied April 6, 2018. Mr. El Khalidi filed a motion for rehearing of his petition for review with the Supreme Court of Texas on April 23, 2018. Liabilities of approximately $1.0 million remain recorded, and the options will continue to accrue in accordance with their own terms until all matters are resolved. The Company is periodically named in legal actions arising from normal business activities. We evaluate the merits of these actions and, if we determine that an unfavorable outcome is probable and can be reasonably estimated, we will establish the necessary reserves. We are not currently involved in legal proceedings that could reasonably be expected to have a material adverse effect on our business, prospects, financial condition or results of operations. We may become involved in material legal proceedings in the future. Supplier Agreements From time to time, we may incur shortfall fees due to feedstock purchases being below the minimum amounts prescribed by our agreements with our suppliers. Shortfall fee expenses for the three months ended March 31, 2018, and 2017, were $0.1 million and $0.9 million, respectively. Environmental Remediation Amounts charged to expense for various activities related to environmental monitoring, compliance, and improvements were approximately $149,000 and $165,000 for the three months ended March 31, 2018, and 2017, respectively.

RECENT ACCOUNTING PRONOUNCEME27

RECENT ACCOUNTING PRONOUNCEMENTS (Policies)	3 Months Ended
	Mar. 31, 2018
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract]
Recent Accounting Pronouncements	In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers Revenue Recognition Revenue from Contracts with Customers In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), In February 2018, the FASB issued ASU No. 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

TRADE RECEIVABLES (Tables)

TRADE RECEIVABLES (Tables)	3 Months Ended
	Mar. 31, 2018
TRADE RECEIVABLES [Abstract]
Trade Receivables	Trade receivables, net, consisted of the following: March 31, 2018 December 31, 2017 (thousands of dollars) Trade receivables $ 27,849 $ 26,079 Less allowance for doubtful accounts (428 ) (300 ) Trade receivables, net $ 27,421 $ 25,779

PREPAID EXPENSES AND OTHER AS29

PREPAID EXPENSES AND OTHER ASSETS (Tables)	3 Months Ended
	Mar. 31, 2018
PREPAID EXPENSES AND OTHER ASSETS [Abstract]
Schedule of Prepaid Expenses and Other Assets	Prepaid expenses and other assets consisted of the following: March 31, 2018 December 31, 2017 (thousands of dollars) Prepaid license $ 1,919 $ 1,919 Prepaid catalyst 723 779 Prepaid insurance 92 - Spare parts 1,100 954 Other prepaid expenses and assets 1,297 772 Total $ 5,131 $ 4,424

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Mar. 31, 2018
INVENTORIES [Abstract]
Inventories	Inventories included the following: March 31, 2018 December 31, 2017 (thousands of dollars) Raw material $ 2,612 $ 3,703 Work in process 51 27 Finished products 13,028 14,720 Total inventory $ 15,691 $ 18,450

PLANT, PIPELINE AND EQUIPMENT (

PLANT, PIPELINE AND EQUIPMENT (Tables)	3 Months Ended
	Mar. 31, 2018
PLANT, PIPELINE AND EQUIPMENT [Abstract]
Plant, Pipeline and Equipment	Plant, pipeline and equipment consisted of the following: March 31, 2018 December 31, 2017 (thousands of dollars) Platinum catalyst metal $ 1,612 $ 1,612 Land 5,428 5,428 Plant, pipeline and equipment 188,529 186,946 Construction in progress 60,441 50,996 Total plant, pipeline and equipment 256,010 244,982 Less accumulated depreciation (65,871 ) (63,240 ) Net plant, pipeline and equipment $ 190,139 $ 181,742

GOODWILL AND INTANGIBLE ASSET32

GOODWILL AND INTANGIBLE ASSETS, NET (Tables)	3 Months Ended
	Mar. 31, 2018
GOODWILL AND INTANGIBLE ASSETS, NET [Abstract]
Summary of Intangible Assets by Major Class	The following tables summarize the gross carrying amounts and accumulated amortization of intangible assets by major class (in thousands): March 31, 2018 Intangible assets subject to amortization (Definite-lived) Gross Accumulated Amortization Net Customer relationships $ 16,852 $ (3,932 ) $ 12,920 Non-compete agreements 94 (66 ) 28 Licenses and permits 1,471 (416 ) 1,055 Developed technology 6,131 (2,146 ) 3,985 24,548 (6,560 ) 17,988 Intangible assets not subject to amortization (Indefinite-lived) Emissions Allowance 197 - 197 Trade name 2,158 - 2,158 Total $ 26,903 $ (6,560 ) $ 20,343 December 31, 2017 Intangible assets subject to amortization (Definite-lived) Gross Accumulated Amortization Net Customer relationships $ 16,852 $ (3,651 ) $ 13,201 Non-compete agreements 94 (61 ) 33 Licenses and permits 1,471 (390 ) 1,081 Developed technology 6,131 (1,993 ) 4,138 24,548 (6,095 ) 18,453 Intangible assets not subject to amortization (Indefinite-lived) Emissions Allowance 197 - 197 Trade name 2,158 - 2,158 Total $ 26,903 $ (6,095 ) $ 20,808
Estimated Amortization Expenses for Succeeding Five Fiscal Years	Based on identified intangible assets that are subject to amortization as of March 31, 2018, we expect future amortization expenses for each period to be as follows (in thousands): Total Remainder of 2018 2019 2020 2021 2022 2023 Thereafter Customer relationships $ 12,920 $ 843 $ 1,123 $ 1,123 1,123 1,123 1,123 $ 6,462 Non-compete agreements 28 14 14 - - - - - Licenses and permits 1,055 79 106 106 101 86 86 491 Developed technology 3,985 460 613 613 613 613 613 460 Total future amortization expense $ 17,988 $ 1,396 $ 1,856 $ 1,842 $ 1,837 $ 1,822 $ 1,822 $ 7,413

NET INCOME PER COMMON SHARE A33

NET INCOME PER COMMON SHARE ATTRIBUTABLE TO TRECORA RESOURCES (Tables)	3 Months Ended
	Mar. 31, 2018
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO TRECORA RESOURCES [Abstract]
Net Income Per Common Share	The following table (in thousands, except per share amounts) sets forth the computation of basic and diluted net income per share attributable to Trecora Resources for the three months ended March 31, 2018 and 2017, respectively. Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 Per Share Per Share Income Shares Amount Income Shares Amount Basic Net Income per Share: Net Income Attributable to Trecora Resources $ 2,352 24,343 $ 0.10 $ 1,487 24,240 $ 0.06 Unvested restricted stock units 403 321 Dilutive stock options outstanding 485 493 Diluted Net Income per Share: Net Income Attributable to Trecora Resources $ 2,352 25,231 $ 0.09 $ 1,487 25,054 $ 0.06

ACCRUED LIABILITIES (Tables)

ACCRUED LIABILITIES (Tables)	3 Months Ended
	Mar. 31, 2018
ACCRUED LIABILITIES [Abstract]
Accrued Liabilities	Accrued liabilities consisted of the following: March 31, 2018 December 31, 2017 (thousands of dollars) Accrued state taxes $ 332 $ 272 Accrued property taxes 703 - Accrued payroll 983 1,407 Accrued interest 31 30 Accrued officer compensation 300 500 Other 1,880 1,752 Total $ 4,229 $ 3,961

LIABILITIES AND LONG-TERM DEBT

LIABILITIES AND LONG-TERM DEBT (Tables)	3 Months Ended
	Mar. 31, 2018
LIABILITIES AND LONG-TERM DEBT [Abstract]
Schedule of Maximum Leverage Ratio	On March 28, 2017, we entered into a Second Amendment to the ARC with terms which increase the Maximum Consolidated Leverage Ratio financial covenant of 3.25x to 4.00x at March 31, 2017, and 4.25x at June 30, 2017, before stepping down to 3.75x at September 30, 2017, 3.50x at December 31, 2017, and reverting to the original financial covenant of 3.25x at March 31, 2018. For Fiscal Quarter Ending Maximum Consolidated Leverage Ratio March 31, 2017 4.00 to 1.00 June 30, 2017 4.25 to 1.00 September 30, 2017 3.75 to 1.00 December 31, 2017 3.50 to 1.00 March 31, 2018 and each fiscal quarter thereafter 3.25 to 1.00
Schedule of Minimum Fixed Charge Coverage Ratio	The Second Amendment also reduces the Minimum Consolidated Fixed Charge Coverage Ratio of 1.25x to 1.10x at March 31, 2017, 1.05x at June 30, 2017 and September 30, 2017, 1.10x at December 31, 2017, before reverting to the original financial covenant of 1.25x at March 31, 2018. For Fiscal Quarter Ending Minimum Consolidated Fixed Charge Coverage Ratio March 31, 2017 1.10 to 1.00 June 30, 2017 1.05 to 1.00 September 30, 2017 1.05 to 1.00 December 31, 2017 1.10 to 1.00 March 31, 2018 and each fiscal quarter thereafter 1.25 to 1.00
Schedule of Pricing Levels for Leverage Ratios	Also, under the terms of the Second Amendment, two additional levels of pricing were added – levels 4 and 5. Level Consolidated Leverage Ratio LIBOR Margin Base Rate Margin Commitment Fee 1 Less than 1.50 to 1.00 2.00% 1.00% 0.25% 2 Greater than or equal to 1.50 to 1.00 but less than 2.00 to 1.00 2.25% 1.25% 0.25% 3 Greater than or equal to 2.00 to 1.00 but less than 3.00 to 1.00 2.50% 1.50% 0.375% 4 Greater than or equal to 3.00 to 1.00 but less than 3.50 to 1.00 2.75% 1.75% 0.375% 5 Greater than or equal to 3.50 to 1.00 3.00% 2.00% 0.375%
Summary of Carrying Amount and Debt Issuance Costs of Long-term Debt	The following table summarizes the carrying amounts and debt issuance costs of our long-term debt (in thousands): March 31, 2018 December 31, 2017 Acquisition loan $ 45,500 $ 47,250 Term loan 17,000 17,333 Revolving facility 45,000 35,000 Total 107,500 99,583 Debt issuance costs (408 ) (501 ) Total long-term debt $ 107,092 $ 99,082 Less current portion including loan fees 8,061 8,061 Total long-term debt, less current portion including loan fees $ 99,031 $ 91,021

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2018
STOCK-BASED COMPENSATION [Abstract]
Restricted Stock Units Activity	Restricted stock units activity in the first three months of 2018 was as follows: Shares of Restricted Stock Units Weighted Average Grant Date Price per Share Outstanding at January 1, 2018 387,702 $ 11.39 Granted 102,317 $ 12.15 Forfeited (34,585 ) $ 10.97 Vested (51,998 ) $ 12.34 Outstanding at March 31, 2018 403,436 $ 11.50
Summary of Status of Stock Option Awards and Warrants	A summary of the status of our stock option awards and warrants is presented below: Number of Stock Options & Warrants Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Life Outstanding at January 1, 2018 1,323,587 $ 7.82 Granted -- -- Exercised (81,427 ) 6.26 Forfeited -- -- Outstanding at March 31, 2018 1,242,160 $ 7.93 4.1 Exercisable at March 31, 2018 1,042,160 $ 8.80 4.7

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2018
SEGMENT INFORMATION [Abstract]
Segment Information	We also separately identify our corporate overhead which includes financing and administrative activities such as legal, accounting, consulting, investor relations, officer and director compensation, corporate insurance, and other administrative costs. Three Months Ended March 31, 2018 Petrochemical Specialty Wax Corporate Eliminations Consolidated (in thousands) Product sales $ 60,285 $ 6,383 $ - $ 31 $ 66,699 Processing fees 2,028 3,212 - (198 ) 5,042 Total revenues 62,313 9,595 - (167 ) 71,741 Operating profit (loss) before depreciation and amortization 8,393 390 (2,148 ) - 6,635 Operating profit (loss) 6,679 (914 ) (2,156 ) - 3,609 Profit (loss) before taxes 6,054 (1,181 ) (1,931 ) - 2,942 Depreciation and amortization 1,714 1,304 8 - 3,026 Capital expenditures 10,283 745 - - 11,028 Three Months Ended March 31, 2017 Petrochemical Specialty Wax Corporate Eliminations Consolidated (in thousands) Product sales $ 44,391 $ 6,508 $ - - $ 50,899 Processing fees 1,488 3,155 - - 4,643 Total revenues 45,879 9,663 - - 55,542 Operating profit (loss) before depreciation and amortization 8,214 745 (2,179 ) - 6,780 Operating profit (loss) 6,658 (271 ) (2,195 ) - 4,192 Profit (loss) before taxes 6,005 (290 ) (3,167 ) - 2,548 Depreciation and amortization 1,556 1,016 16 - 2,588 Capital expenditures 8,756 5,125 - - 13,881 March 31, 2018 Petrochemical Specialty Wax Corporate Eliminations Consolidated (in thousands) Trade receivables, product sales $ 21,495 $ 3,127 $ - $ 25 $ 24,647 Trade receivables, processing fees 1,018 1,841 - (85 ) 2,774 Goodwill and intangible assets, net - 42,141 - - 42,141 Total assets 275,063 117,297 97,543 (154,777 ) 335,126 December 31, 2017 Petrochemical Specialty Wax Corporate Eliminations Consolidated (in thousands) Trade receivables, product sales $ 20,211 $ 2,671 $ - $ - $ 22.882 Trade receivables, processing fees 983 1,914 - - 2,897 Goodwill and intangible assets, net - 42,606 - - 42,606 Total assets 265,213 117,579 97,880 (153,346 ) 327,326

INVESTMENT IN AMAK (Tables)

INVESTMENT IN AMAK (Tables)	3 Months Ended
	Mar. 31, 2018
INVESTMENT IN AMAK [Abstract]
Summarized Results of Operation and Financial Position for AMAK	The summarized results of operation and financial position for AMAK are as follows: Results of Operations Three Months Ended March 31, 2018 2017 (thousands of dollars) Sales $ 14,087 $ 2,256 Gross profit (loss) 1,581 (1,307 ) General, administrative and other expenses 1,900 2,589 Net Loss $ (319 ) $ (3,896 )
Equity in Income or Loss of AMAK Reflected on Consolidated Statements	Depreciation and amortization was $7.7 million and $0.5 million for the three months ended March 31, 2018, and 2017, respectively. Therefore, net income before depreciation and amortization was as follows: Three Months Ended March 31, 2018 2017 (thousands of dollars) Net income (loss) before depreciation and amortization $ 7,382 $ (3,369 ) Financial Position March 31, December 31, 2018 2017 (thousands of dollars) Current assets $ 33,273 $ 23,333 Noncurrent assets 228,733 237,875 Total assets $ 262,006 $ 261,208 Current liabilities $ 22,873 $ 24,439 Long term liabilities 71,520 68,837 Shareholders' equity 167,613 167,932 $ 262,006 $ 261,208 The equity in the income or loss of AMAK reflected on the consolidated statements of income for the three months ended March 31, 2018, and 2017, is comprised of the following: Three months ended March 31, 2018 2017 (thousands of dollars) AMAK Net Loss $ (319 ) $ (3,896 ) Company's share of loss reported by AMAK $ (107 ) $ (1,303 ) Amortization of difference between Company's investment in AMAK and Company's share of net assets of AMAK 337 337 Equity in earnings (loss) of AMAK $ 230 $ (966 )

GENERAL (Details)

GENERAL (Details)	3 Months Ended
	Mar. 31, 2018Segment
Noncontrolling Interest [Line Items]
Number of operating segments	2
Al Masane Al Kobra ("AMAK") [Member]
Noncontrolling Interest [Line Items]
Percentage of ownership	33.00%
Pioche Ely Valley Mines, Inc. ("PEVM") [Member]
Noncontrolling Interest [Line Items]
Percentage of ownership	55.00%

RECENT ACCOUNTING PRONOUNCEME40

RECENT ACCOUNTING PRONOUNCEMENTS (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract]
Federal corporate tax rate	21.00%	35.00%	35.00%

TRADE RECEIVABLES (Details)

TRADE RECEIVABLES (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
TRADE RECEIVABLES [Abstract]
Trade receivables	$ 27,849	$ 26,079
Less allowance for doubtful accounts	(428)	(300)
Trade receivables, net	$ 27,421	$ 25,779

PREPAID EXPENSES AND OTHER AS42

PREPAID EXPENSES AND OTHER ASSETS (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
PREPAID EXPENSES AND OTHER ASSETS [Abstract]
Prepaid license	$ 1,919	$ 1,919
Prepaid catalyst	723	779
Prepaid insurance	92	0
Spare parts	1,100	954
Other prepaid expenses and assets	1,297	772
Total	$ 5,131	$ 4,424

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
INVENTORIES [Abstract]
Raw material	$ 2,612	$ 3,703
Work in process	51	27
Finished products	13,028	14,720
Total inventory	15,691	18,450
Products in transit	$ 4,000	$ 3,700

PLANT, PIPELINE AND EQUIPMENT44

PLANT, PIPELINE AND EQUIPMENT (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Total plant, pipeline and equipment	$ 256,010		$ 244,982
Less accumulated depreciation	(65,871)		(63,240)
PLANT, PIPELINE, AND EQUIPMENT, NET (Note 9)	190,139		181,742
Interest capitalized for construction	304	$ 374
Capitalized labor costs	1,200	800
Amortization relating to the platinum catalyst	0	$ 25
Platinum Catalyst Metal [Member]
Property, Plant and Equipment [Line Items]
Total plant, pipeline and equipment	1,612		1,612
Land [Member]
Property, Plant and Equipment [Line Items]
Total plant, pipeline and equipment	5,428		5,428
Plant, Pipeline and Equipment [Member]
Property, Plant and Equipment [Line Items]
Total plant, pipeline and equipment	188,529		186,946
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Total plant, pipeline and equipment	$ 60,441		$ 50,996

GOODWILL AND INTANGIBLE ASSET45

GOODWILL AND INTANGIBLE ASSETS, NET (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Intangible assets subject to amortization [Abstract]
Gross	$ 24,548		$ 24,548
Accumulated Amortization	(6,560)		(6,095)
Net	17,988		18,453
Amortization of intangible assets	465	$ 465
Intangible assets not subject to amortization [Abstract]
Gross	26,903		26,903
Accumulated Amortization	(6,560)		(6,095)
Net	20,343		20,808
Estimated amortization expense for succeeding five fiscal years [Abstract]
Total	17,988
Remainder of 2018	1,396
2,019	1,856
2,020	1,842
2,021	1,837
2,022	1,822
2,023	1,822
Thereafter	7,413
Emissions Allowance [Member]
Intangible assets not subject to amortization [Abstract]
Gross	197		197
Accumulated Amortization	0		0
Net	197		197
Trade Name [Member]
Intangible assets not subject to amortization [Abstract]
Gross	2,158		2,158
Accumulated Amortization	0		0
Net	2,158		2,158
Customer Relationships [Member]
Estimated amortization expense for succeeding five fiscal years [Abstract]
Total	12,920
Remainder of 2018	843
2,019	1,123
2,020	1,123
2,021	1,123
2,022	1,123
2,023	1,123
Thereafter	6,462
Non-compete Agreements [Member]
Estimated amortization expense for succeeding five fiscal years [Abstract]
Total	28
Remainder of 2018	14
2,019	14
2,020	0
2,021	0
2,022	0
2,023	0
Thereafter	0
Licenses and Permits [Member]
Estimated amortization expense for succeeding five fiscal years [Abstract]
Total	1,055
Remainder of 2018	79
2,019	106
2,020	106
2,021	101
2,022	86
2,023	86
Thereafter	491
Developed Technology [Member]
Estimated amortization expense for succeeding five fiscal years [Abstract]
Total	3,985
Remainder of 2018	460
2,019	613
2,020	613
2,021	613
2,022	613
2,023	613
Thereafter	460
Customer Relationships [Member]
Intangible assets subject to amortization [Abstract]
Gross	16,852		16,852
Accumulated Amortization	(3,932)		(3,651)
Net	12,920		13,201
Non-compete Agreements [Member]
Intangible assets subject to amortization [Abstract]
Gross	94		94
Accumulated Amortization	(66)		(61)
Net	28		33
Licenses and Permits [Member]
Intangible assets subject to amortization [Abstract]
Gross	1,471		1,471
Accumulated Amortization	(416)		(390)
Net	1,055		1,081
Developed Technology [Member]
Intangible assets subject to amortization [Abstract]
Gross	6,131		6,131
Accumulated Amortization	(2,146)		(1,993)
Net	$ 3,985		$ 4,138

NET INCOME PER COMMON SHARE A46

NET INCOME PER COMMON SHARE ATTRIBUTABLE TO TRECORA RESOURCES (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Basic Net Income per Share [Abstract]
Net Income Attributable to Trecora Resources	$ 2,352	$ 1,487
Weighted average number of shares outstanding, basic (in shares)	24,343,000	24,240,000
Net Income Attributable to Trecora Resources (in dollars per share)	$ 0.10	$ 0.06
Unvested restricted stock units (in shares)	403,000	321,000
Dilutive stock options outstanding (in shares)	485,000	493,000
Diluted Net Income per Share [Abstract]
Net Income Attributable to Trecora Resources	$ 2,352	$ 1,487
Weighted average number of shares outstanding, diluted (in shares)	25,231,000	25,054,000
Net Income Attributable to Trecora Resources (in dollars per share)	$ 0.09	$ 0.06
Potential common stock shares issuable upon exercise of options (in shares)	1,242,160	1,334,087
Treasury Stock [Member]
Class of Stock [Line Items]
Number of stock exchanged (in shares)	65,000
Al Masane Al Kobra ("AMAK") [Member]
Class of Stock [Line Items]
Number of stock exchanged (in shares)	24,489

ACCRUED LIABILITIES (Details)

ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Accrued Liabilities [Abstract]
Accrued state taxes	$ 332	$ 272
Accrued property taxes	703	0
Accrued payroll	983	1,407
Accrued interest	31	30
Accrued officer compensation	300	500
Other	1,880	1,752
Total	$ 4,229	$ 3,961

LIABILITIES AND LONG-TERM DEB48

LIABILITIES AND LONG-TERM DEBT (Details) - USD ($) $ in Thousands	Oct. 01, 2014	Mar. 31, 2018	Dec. 31, 2017	Jul. 25, 2017
Maximum Consolidated Leverage Ratio [Abstract]
Maximum consolidated leverage ratio, March 31, 2017		4
Maximum consolidated leverage ratio, June 30, 2017		4.25
Maximum consolidated leverage ratio, September 30, 2017		3.75
Maximum consolidated leverage ratio, December 31, 2017		3.50
Maximum consolidated leverage ratio, March 31, 2018 and each fiscal quarter thereafter		3.25
Minimum Consolidated Fixed Charge Coverage Ratio [Abstract]
Minimum consolidated fixed charge coverage ratio, March 31, 2017		1.10
Minimum consolidated fixed charge coverage ratio, June 30, 2017		1.05
Minimum consolidated fixed charge coverage ratio, September 30, 2017		1.05
Minimum consolidated fixed charge coverage ratio, December 31, 2017		1.10
Minimum consolidated fixed charge coverage ratio, March 31, 2018 and each fiscal quarter thereafter		1.25
Pricing Levels for Leverage Ratios [Abstract]
Interest rate on loan		4.38%	4.07%
Long-term debt [Abstract]
Long-term debt		$ 107,500	$ 99,583
Debt issuance costs		(408)	(501)
Total long-term debt		107,092	99,082
Less current portion including loan fees		8,061	8,061
Total long-term debt, less current portion including loan fees		$ 99,031	91,021
Leverage Ratio, Less than 1.50 to 1.00 [Member]
Pricing Levels for Leverage Ratios [Abstract]
Commitment fee		0.25%
Leverage Ratio, Less than 1.50 to 1.00 [Member] | Maximum [Member]
Pricing Levels for Leverage Ratios [Abstract]
Consolidated leverage ratio		1.50
Leverage Ratio, Greater than or Equal to 1.50 to 1.00 but Less than 2.00 to 1.00 [Member]
Pricing Levels for Leverage Ratios [Abstract]
Commitment fee		0.25%
Leverage Ratio, Greater than or Equal to 1.50 to 1.00 but Less than 2.00 to 1.00 [Member] | Minimum [Member]
Pricing Levels for Leverage Ratios [Abstract]
Consolidated leverage ratio		1.50
Leverage Ratio, Greater than or Equal to 1.50 to 1.00 but Less than 2.00 to 1.00 [Member] | Maximum [Member]
Pricing Levels for Leverage Ratios [Abstract]
Consolidated leverage ratio		2
Leverage Ratio, Greater than or Equal to 2.00 to 1.00 but Less than 3.00 to 1.00 [Member]
Pricing Levels for Leverage Ratios [Abstract]
Commitment fee		0.375%
Leverage Ratio, Greater than or Equal to 2.00 to 1.00 but Less than 3.00 to 1.00 [Member] | Minimum [Member]
Pricing Levels for Leverage Ratios [Abstract]
Consolidated leverage ratio		2
Leverage Ratio, Greater than or Equal to 2.00 to 1.00 but Less than 3.00 to 1.00 [Member] | Maximum [Member]
Pricing Levels for Leverage Ratios [Abstract]
Consolidated leverage ratio		3
Leverage Ratio, Greater than or Equal to 3.00 to 1.00 but Less than 3.50 to 1.00 [Member]
Pricing Levels for Leverage Ratios [Abstract]
Commitment fee		0.375%
Leverage Ratio, Greater than or Equal to 3.00 to 1.00 but Less than 3.50 to 1.00 [Member] | Minimum [Member]
Pricing Levels for Leverage Ratios [Abstract]
Consolidated leverage ratio		3
Leverage Ratio, Greater than or Equal to 3.00 to 1.00 but Less than 3.50 to 1.00 [Member] | Maximum [Member]
Pricing Levels for Leverage Ratios [Abstract]
Consolidated leverage ratio		3.50
Leverage Ratio, Greater than or Equal to 3.50 to 1.00 [Member]
Pricing Levels for Leverage Ratios [Abstract]
Commitment fee		0.375%
Leverage Ratio, Greater than or Equal to 3.50 to 1.00 [Member] | Minimum [Member]
Pricing Levels for Leverage Ratios [Abstract]
Consolidated leverage ratio		3.50
Revolving Facility [Member]
Pricing Levels for Leverage Ratios [Abstract]
Maximum borrowing capacity		$ 60,000		$ 40,000
Maturity date		Oct. 1, 2019
Available remaining borrowing capacity		$ 14,900
Available remaining borrowing capacity to maintain covenant compliance		10,000
Long-term debt [Abstract]
Long-term debt		$ 45,000	35,000
Acquisition Loan [Member]
Pricing Levels for Leverage Ratios [Abstract]
Maturity date		Sep. 30, 2019
Total long-term debt	$ 70,000
Amortization period for principal on acquisition term loan		10 years
Quarterly installment amount of acquisition term loan		$ 1,800
Long-term debt [Abstract]
Long-term debt		45,500	47,250
Less current portion including loan fees		7,000	7,000
Total long-term debt, less current portion including loan fees		$ 38,500	40,300
Term Loan [Member]
Pricing Levels for Leverage Ratios [Abstract]
Maturity date		Sep. 30, 2019
Amount of multiple advance loan that was available to be borrowed		$ 25,000
Quarterly installment amount of acquisition term loan		300
Long-term debt [Abstract]
Long-term debt		17,000	17,333
Less current portion including loan fees		1,300	1,300
Total long-term debt, less current portion including loan fees		$ 15,700	$ 16,000
LIBOR [Member] | Leverage Ratio, Less than 1.50 to 1.00 [Member]
Pricing Levels for Leverage Ratios [Abstract]
Basis spread on variable rate		2.00%
LIBOR [Member] | Leverage Ratio, Greater than or Equal to 1.50 to 1.00 but Less than 2.00 to 1.00 [Member]
Pricing Levels for Leverage Ratios [Abstract]
Basis spread on variable rate		2.25%
LIBOR [Member] | Leverage Ratio, Greater than or Equal to 2.00 to 1.00 but Less than 3.00 to 1.00 [Member]
Pricing Levels for Leverage Ratios [Abstract]
Basis spread on variable rate		2.50%
LIBOR [Member] | Leverage Ratio, Greater than or Equal to 3.00 to 1.00 but Less than 3.50 to 1.00 [Member]
Pricing Levels for Leverage Ratios [Abstract]
Basis spread on variable rate		2.75%
LIBOR [Member] | Leverage Ratio, Greater than or Equal to 3.50 to 1.00 [Member]
Pricing Levels for Leverage Ratios [Abstract]
Basis spread on variable rate		3.00%
Base Rate [Member] | Leverage Ratio, Less than 1.50 to 1.00 [Member]
Pricing Levels for Leverage Ratios [Abstract]
Basis spread on variable rate		1.00%
Base Rate [Member] | Leverage Ratio, Greater than or Equal to 1.50 to 1.00 but Less than 2.00 to 1.00 [Member]
Pricing Levels for Leverage Ratios [Abstract]
Basis spread on variable rate		1.25%
Base Rate [Member] | Leverage Ratio, Greater than or Equal to 2.00 to 1.00 but Less than 3.00 to 1.00 [Member]
Pricing Levels for Leverage Ratios [Abstract]
Basis spread on variable rate		1.50%
Base Rate [Member] | Leverage Ratio, Greater than or Equal to 3.00 to 1.00 but Less than 3.50 to 1.00 [Member]
Pricing Levels for Leverage Ratios [Abstract]
Basis spread on variable rate		1.75%
Base Rate [Member] | Leverage Ratio, Greater than or Equal to 3.50 to 1.00 [Member]
Pricing Levels for Leverage Ratios [Abstract]
Basis spread on variable rate		2.00%

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Debt Instrument, Fair Value Disclosure [Abstract]
Outstanding liability	$ 0	$ 0
Interest Rate Swap [Member]
Debt Instrument, Fair Value Disclosure [Abstract]
Term loan secured by plant, pipeline and equipment	$ 10

DERIVATIVE INSTRUMENTS (Details

DERIVATIVE INSTRUMENTS (Details) - Interest Rate Swap [Member] $ in Millions	Mar. 31, 2018USD ($)
Derivative [Line Items]
Term loan in pay fixed, receive variable interest rate swap	$ 10
Term loan secured by plant, pipeline and equipment	$ 14
Derivative, variable interest rate	5.83%

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands	Feb. 20, 2018	Jan. 17, 2018	Mar. 31, 2018	Mar. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense			$ 592	$ 633
Restricted Stock Awards [Member] | Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense			$ 5
Shares of Restricted Stock Units [Roll Forward]
Granted (in shares)		251
Weighted Average Grant Date Price per Share [Abstract]
Granted (in dollars per share)		$ 13.85
Restricted Stock Unit Awards [Member]
Shares of Restricted Stock Units [Roll Forward]
Outstanding at beginning of period (in shares)			387,702
Granted (in shares)			102,317
Forfeited (in shares)			(34,585)
Vested (in shares)			(51,998)
Outstanding at end of period (in shares)			403,436
Weighted Average Grant Date Price per Share [Abstract]
Outstanding at beginning of period (in dollars per share)			$ 11.39
Granted (in dollars per share)			12.15
Forfeited (in dollars per share)			10.97
Vested (in dollars per share)			12.34
Outstanding at end of period (in dollars per share)			$ 11.50
Restricted Stock Unit Awards [Member] | Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense			$ 36
Percentage of stock vests ratably over three years	50.00%
Vesting period of stock vests ratably over three years			3 years
Percentage of stock vests at the end of the three years	50.00%
Vesting period of stock vests at the end of three years			3 years
Shares of Restricted Stock Units [Roll Forward]
Granted (in shares)	102,000
Weighted Average Grant Date Price per Share [Abstract]
Granted (in dollars per share)	$ 12.15
Restricted Stock Unit Awards [Member] | Officer [Member] | Vesting through 2020 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense			$ 112	0
Restricted Stock Unit Awards [Member] | Director [Member] | Vesting through 2020 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense			84	81
Restricted Stock Unit Awards [Member] | Officer 1 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense			$ 97	105
Percentage of stock vests ratably over three years			50.00%
Vesting period of stock vests ratably over three years			3 years
Percentage of stock vests at the end of the three years			50.00%
Vesting period of stock vests at the end of three years			3 years
Restricted Stock Unit Awards [Member] | Officer and Key Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			4 years
Restricted Stock Unit Awards [Member] | Officer and Key Employees [Member] | Vesting through 2019 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense			$ 104	$ 108

STOCK-BASED COMPENSATION, Stock

STOCK-BASED COMPENSATION, Stock Option and Warrant Awards (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Weighted Average Remaining Contractual Life [Abstract]
Compensation expense	$ 592	$ 633
Stock Options [Member]
Stock Options and Warrants [Roll Forward]
Outstanding at beginning of period (in shares)	1,323,587
Granted (in shares)	0
Exercised (in shares)	(81,427)
Forfeited (in shares)	0
Outstanding at end of period (in shares)	1,242,160
Exercisable, end of period (in shares)	1,042,160
Weighted Average Exercise Price Per Share [Roll Forward]
Outstanding at beginning of period (in dollars per share)	$ 7.82
Granted (in dollars per share)	0
Exercised (in dollars per share)	6.26
Forfeited (in dollars per share)	0
Outstanding at end of period (in dollars per share)	7.93
Exercisable, end of period (in dollars per share)	$ 8.80
Weighted Average Remaining Contractual Life [Abstract]
Outstanding, weighted average remaining contractual life	4 years 1 month 6 days
Exercisable, weighted average remaining contractual life	4 years 8 months 12 days
Stock Options [Member] | Director [Member] | Vesting through 2017 [Member]
Weighted Average Remaining Contractual Life [Abstract]
Compensation expense	$ 0	30
Stock Options [Member] | Officer and Key Employees [Member]
Weighted Average Remaining Contractual Life [Abstract]
Vesting period	4 years
Stock Options [Member] | Officer and Key Employees [Member] | Vesting through 2018 [Member]
Weighted Average Remaining Contractual Life [Abstract]
Compensation expense	$ 154	309
Stock Options [Member] | Mr. Hatem El Khalidi [Member]
Weighted Average Remaining Contractual Life [Abstract]
Compensation expense	$ 0	$ 0

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Segment Reporting Information [Line Items]
Total revenues	$ 71,741	$ 55,542
Operating profit (loss) before depreciation and amortization	6,635	6,780
Operating profit (loss)	3,609	4,192
Profit (loss) before taxes	2,942	2,548
Depreciation and amortization	3,026	2,588
Capital expenditures	11,028	13,881
Trade receivables	27,421		$ 25,779
Goodwill and intangible assets, net	42,141		42,606
Total assets	335,126		327,326
Product Sales [Member]
Segment Reporting Information [Line Items]
Total revenues	66,699	50,899
Trade receivables	24,647		22,882
Processing Fees [Member]
Segment Reporting Information [Line Items]
Total revenues	5,042	4,643
Trade receivables	2,774		2,897
Operating Segments [Member] | Petrochemical [Member]
Segment Reporting Information [Line Items]
Total revenues	62,313	45,879
Operating profit (loss) before depreciation and amortization	8,393	8,214
Operating profit (loss)	6,679	6,658
Profit (loss) before taxes	6,054	6,005
Depreciation and amortization	1,714	1,556
Capital expenditures	10,283	8,756
Goodwill and intangible assets, net	0		0
Total assets	275,063		265,213
Operating Segments [Member] | Petrochemical [Member] | Product Sales [Member]
Segment Reporting Information [Line Items]
Total revenues	60,285	44,391
Trade receivables	21,495		20,211
Operating Segments [Member] | Petrochemical [Member] | Processing Fees [Member]
Segment Reporting Information [Line Items]
Total revenues	2,028	1,488
Trade receivables	1,018		983
Operating Segments [Member] | Specialty Wax [Member]
Segment Reporting Information [Line Items]
Total revenues	9,595	9,663
Operating profit (loss) before depreciation and amortization	390	745
Operating profit (loss)	(914)	(271)
Profit (loss) before taxes	(1,181)	(290)
Depreciation and amortization	1,304	1,016
Capital expenditures	745	5,125
Goodwill and intangible assets, net	42,141		42,606
Total assets	117,297		117,579
Operating Segments [Member] | Specialty Wax [Member] | Product Sales [Member]
Segment Reporting Information [Line Items]
Total revenues	6,383	6,508
Trade receivables	3,127		2,671
Operating Segments [Member] | Specialty Wax [Member] | Processing Fees [Member]
Segment Reporting Information [Line Items]
Total revenues	3,212	3,155
Trade receivables	1,841		1,914
Corporate [Member]
Segment Reporting Information [Line Items]
Total revenues	0	0
Operating profit (loss) before depreciation and amortization	(2,148)	(2,179)
Operating profit (loss)	(2,156)	(2,195)
Profit (loss) before taxes	(1,931)	(3,167)
Depreciation and amortization	8	16
Capital expenditures	0	0
Goodwill and intangible assets, net	0		0
Total assets	97,543		97,880
Corporate [Member] | Product Sales [Member]
Segment Reporting Information [Line Items]
Total revenues	0	0
Trade receivables	0		0
Corporate [Member] | Processing Fees [Member]
Segment Reporting Information [Line Items]
Total revenues	0	0
Trade receivables	0		0
Eliminations [Member]
Segment Reporting Information [Line Items]
Total revenues	(167)	0
Operating profit (loss) before depreciation and amortization	0	0
Operating profit (loss)	0	0
Profit (loss) before taxes	0	0
Depreciation and amortization	0	0
Capital expenditures	0	0
Goodwill and intangible assets, net	0		0
Total assets	(154,777)		(153,346)
Eliminations [Member] | Product Sales [Member]
Segment Reporting Information [Line Items]
Total revenues	31	0
Trade receivables	25		0
Eliminations [Member] | Processing Fees [Member]
Segment Reporting Information [Line Items]
Total revenues	(198)	$ 0
Trade receivables	$ (85)		$ 0

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Tax Credit Carryforward [Line Items]
Federal corporate tax rate	21.00%	35.00%	35.00%
Income tax receivable	$ 4,400
Research and Development [Member]
Tax Credit Carryforward [Line Items]
Refund claims amount	$ 350

POST-RETIREMENT OBLIGATIONS (De

POST-RETIREMENT OBLIGATIONS (Details) - Postretirement Benefits [Member] - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Mr. Hatem El Khalidi [Member]
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Post retirement liability	$ 1	$ 1
Nicholas Carter [Member]
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Post retirement liability	$ 0.2	$ 0.3

INVESTMENT IN AMAK (Details)

INVESTMENT IN AMAK (Details)	3 Months Ended
	Mar. 31, 2018USD ($)ر.س / $shares	Mar. 31, 2017USD ($)	Dec. 31, 2017USD ($)
Equity in Income or Loss of AMAK Reflected on Consolidated Statement Of Operation [Abstract]
Equity in earnings (loss) of AMAK	$ 230,000	$ (966,000)
Treasury Stock [Member]
Schedule of Equity Method Investments [Line Items]
Number of stock exchanged (in shares) | shares	65,000
AMAK [Member]
Schedule of Equity Method Investments [Line Items]
Number of stock exchanged (in shares) | shares	24,489
Percentage investment in AMAK	33.41%		33.44%
Investment in AMAK	$ 45,200,000		$ 45,100,000
Exchange rate | ر.س / $	3.75
Results of Operations [Abstract]
Sales	$ 14,087,000	2,256,000
Gross profit (loss)	1,581,000	(1,307,000)
General, administrative and other expenses	1,900,000	2,589,000
Net Loss	(319,000)	(3,896,000)
Depreciation and amortization	7,700,000	500,000
Net income (loss) before depreciation and amortization	7,382,000	(3,369,000)
Financial Position [Abstract]
Current assets	33,273,000		23,333,000
Noncurrent assets	228,733,000		237,875,000
Total assets	262,006,000		261,208,000
Current liabilities	22,873,000		24,439,000
Long term liabilities	71,520,000		68,837,000
Shareholders' equity	167,613,000		167,932,000
Total liabilities and Shareholders' equity	262,006,000		261,208,000
Equity in Income or Loss of AMAK Reflected on Consolidated Statement Of Operation [Abstract]
AMAK Net Loss	(319,000)	(3,896,000)
Company's share of loss reported by AMAK	(107,000)	(1,303,000)
Amortization of difference between Company's investment in AMAK and Company's share of net assets of AMAK	337,000	337,000
Equity in earnings (loss) of AMAK	230,000	$ (966,000)
Amount receivable for unreimbursed travel expenses	$ 165,000		$ 121,000

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Director [Member]
Related Party Transaction [Line Items]
Consulting fees		$ 27,000
Executive Chairman [Member]
Related Party Transaction [Line Items]
Consulting fees	$ 31,000	$ 19,000
Period of consulting agreement	3 years

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) ر.س in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)	Mar. 31, 2017USD ($)	Mar. 31, 2018SAR (ر.س)	Oct. 24, 2010USD ($)	Oct. 24, 2010SAR (ر.س)
Operating Lease Commitments [Abstract]
Operating lease, rental expense	$ 1,100	$ 800
Supplier Agreements [Abstract]
Shortfall fee expenses	100	900
Expenses for environmental monitoring, compliance, and improvements	149	$ 165
Pending Litigation [Member]
Loss Contingencies [Line Items]
Accrual recorded value	1,000
Saudi Industrial Development Fund Limited Guarantee [Member]
Guarantor Obligations [Line Items]
Principal amount of loan guaranteed				$ 88,000	ر.س 330,000
Amount of maximum exposure	$ 81,300		ر.س 305,000	$ 36,100	ر.س 135,330
Saudi Industrial Development Fund Limited Guarantee [Member] | Maximum [Member]
Guarantor Obligations [Line Items]
Loan guarantee				41.00%	41.00%