Revenue and Earnings - Crude oil marketing segment revenues increased by $15.3 million to $623.8 million for the three months ended March 31, 2024, compared to $608.5 million in the same period of 2023, primarily due to a rise in crude oil prices [113]. - Operating earnings for the crude oil marketing segment rose by 249% to $6.7 million in Q1 2024, up from $1.9 million in Q1 2023, driven by higher average market prices and lower operating costs [113]. - Transportation segment revenues decreased by $3.2 million to $23.2 million in Q1 2024, down from $26.4 million in Q1 2023, attributed to reduced volumes and transportation rates [126]. - Revenues net of fuel costs for the transportation segment fell by $3.4 million to $20.4 million in Q1 2024, compared to $23.8 million in Q1 2023 [127]. - Logistics and repurposing segment revenues decreased by 8% to $13.991 million in Q1 2024 from $15.241 million in Q1 2023 [137]. - Operating losses in the logistics and repurposing segment increased by 377% to $(1.484) million in Q1 2024 compared to a profit of $0.535 million in Q1 2023 [139]. Costs and Expenses - Average crude oil purchase price increased from $73.27 per barrel in Q1 2023 to $75.35 per barrel in Q1 2024, while field-level purchase volumes decreased from 94,030 barrels per day to 64,634 barrels per day [114]. - Driver compensation in the crude oil marketing segment decreased by $1.5 million to $3.5 million in Q1 2024, primarily due to lower volumes transported [116]. - Fuel costs increased by $0.2 million during the three months ended March 31, 2024, compared to the same period in 2023, primarily due to higher fuel prices [130]. - Transportation operating earnings decreased by $0.7 million for the three months ended March 31, 2024, attributed to lower revenues from decreased volumes and transportation rates [131]. - Depreciation and amortization expenses in the transportation segment decreased by 8% to $2.9 million in Q1 2024, down from $3.1 million in Q1 2023 [126]. Inventory and Capital Expenditures - The company held crude oil inventory at a weighted average price of $81.96 per barrel as of March 31, 2024, compared to $72.35 per barrel as of December 31, 2023 [123]. - Crude oil inventory increased by $7.5 million, with the price per barrel rising from $72.35 at December 31, 2023, to $81.96 at March 31, 2024, and a 23.0% increase in the number of barrels held [152]. - Total capital spending for the three months ended March 31, 2024, was $6.2 million, up from $1.9 million in the same period in 2023 [156]. - Net cash flows used in investing activities increased by $3.7 million to $5.2 million for the three months ended March 31, 2024, primarily due to a $4.3 million increase in capital spending [155]. Cash Flow and Financing - Cash and cash equivalents increased by 10% to $36.603 million as of March 31, 2024, compared to $33.256 million at December 31, 2023 [144]. - Net cash flows from operating activities decreased by $10.6 million to $13.1 million for the three months ended March 31, 2024, compared to $23.7 million in the same period in 2023 [152]. - Net cash used in financing activities was $4.9 million for the three months ended March 31, 2024, compared to $2.3 million in the same period in 2023, reflecting increased principal payments on the Term Loan [157]. - Principal payments on the Term Loan increased from $0.6 million in Q1 2023 to $2.6 million in Q1 2024 [157]. - Cash dividends paid remained consistent at $0.24 per common share, totaling $0.7 million for both Q1 2024 and Q1 2023 [157]. Operational Changes - The company closed two terminals in late 2023 and a third terminal in Q1 2024 due to softening customer demand, reducing the total number of terminals to sixteen [128]. - The expiration of a five-year purchase contract in the Red River area led to a decrease in average crude oil volumes and revenues starting November 2023 [115]. - Pipeline throughput increased to 11,256 barrels per day in Q1 2024, up from 10,088 barrels per day in Q1 2023, representing a growth of approximately 11.6% [134]. - Pipeline and storage segment revenues remained consistent year-over-year after eliminating intersegment revenue, with a 14% increase in revenues before elimination [133]. - The company is constructing a new pipeline connection expected to be operational in the second half of 2024, enhancing crude oil supply capabilities [135]. Debt and Obligations - At March 31, 2024, the company had $19.3 million of borrowings outstanding under the Credit Agreement at a weighted average interest rate of 7.67% [148]. - Total contractual obligations as of March 31, 2024, amounted to $61.8 million, with $18.8 million due within one year [159]. - The company has no off-balance sheet arrangements that are expected to materially affect its financial position or cash flows [161]. Accounting Policies - There have been no material changes to critical accounting policies since the disclosures in the 2023 Form 10-K [163].
AE(AE) - 2024 Q1 - Quarterly Report