2024 Q1 Form 10-K Financial Statement

#000103968424000015 Filed on February 27, 2024

View on sec.gov

Income Statement

Concept 2024 Q1 2023 Q4 2023
Revenue $4.781B $5.235B $17.68B
YoY Change 5.75% 4.03% -21.04%
Cost Of Revenue $2.897B $3.301B $11.93B
YoY Change -13.44% -15.21% -33.39%
Gross Profit $1.884B $1.934B $5.748B
YoY Change 60.48% 69.83% 28.39%
Gross Profit Margin 39.41% 36.94% 32.52%
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $254.0M $260.0M $769.0M
YoY Change 56.79% 65.17% 22.82%
% of Gross Profit 13.48% 13.44% 13.38%
Operating Expenses $820.0M $810.0M $1.518B
YoY Change 79.04% 68.91% -14.52%
Operating Profit $1.064B $1.124B $4.072B
YoY Change -28.92% 70.5% 45.04%
Interest Expense $300.0M -$235.0M $866.0M
YoY Change 80.72% 81.28% 28.12%
% of Operating Profit 28.2% -20.91% 21.27%
Other Income/Expense, Net $7.000M $46.00M $89.00M
YoY Change -12.5% -4906.69% -377.27%
Pretax Income $847.0M $910.0M $3.497B
YoY Change -38.58% 45.12% 55.45%
Income Tax $208.0M $222.0M $838.0M
% Of Pretax Income 24.56% 24.4% 23.96%
Net Earnings $639.0M $688.0M $2.659B
YoY Change -39.08% 41.96% 54.39%
Net Earnings / Revenue 13.37% 13.14% 15.04%
Basic Earnings Per Share $1.09 $5.49
Diluted Earnings Per Share $1.09 $1.18 $5.48
COMMON SHARES
Basic Shares Outstanding 583.2M shares 582.6M shares 484.3M shares
Diluted Shares Outstanding 585.7M shares 485.4M shares

Balance Sheet

Concept 2024 Q1 2023 Q4 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $65.00M $338.0M $338.0M
YoY Change -90.44% 53.48% 53.48%
Cash & Equivalents $65.00M $338.0M $338.0M
Short-Term Investments
Other Short-Term Assets $212.0M $252.0M $252.0M
YoY Change 34.18% 46.9% 46.9%
Inventory $798.0M $639.0M $813.0M
Prepaid Expenses
Receivables $1.699B $1.705B $1.705B
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $2.950B $3.108B $3.108B
YoY Change 14.83% 21.99% 21.99%
LONG-TERM ASSETS
Property, Plant & Equipment $32.81B $32.70B $32.70B
YoY Change 63.71% 63.87% 63.2%
Goodwill $5.056B $4.952B
YoY Change 838.6%
Intangibles $1.311B $1.316B
YoY Change 484.17%
Long-Term Investments $1.939B $1.874B $1.874B
YoY Change 145.75% 133.73% 133.73%
Other Assets $327.0M $319.0M $319.0M
YoY Change 3.48% -1.58% 32.2%
Total Long-Term Assets $41.44B $41.16B $41.16B
YoY Change 89.27% 88.53% 88.53%
TOTAL ASSETS
Total Short-Term Assets $2.950B $3.108B $3.108B
Total Long-Term Assets $41.44B $41.16B $41.16B
Total Assets $44.39B $44.27B $44.27B
YoY Change 81.45% 81.57% 81.57%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.480B $1.564B $1.564B
YoY Change 37.8% 15.04% 15.04%
Accrued Expenses $268.0M $404.0M $404.0M
YoY Change 79.87% 64.67% 64.67%
Deferred Revenue $99.00M $104.0M
YoY Change 346.35%
Short-Term Debt $320.0M $0.00 $0.00
YoY Change
Long-Term Debt Due $1.200B $484.0M $484.0M
YoY Change 140.0% -47.68% -47.84%
Total Short-Term Liabilities $4.194B $3.452B $3.452B
YoY Change 92.21% 13.12% 13.12%
LONG-TERM LIABILITIES
Long-Term Debt $20.45B $21.18B $21.18B
YoY Change 60.65% 66.85% 66.6%
Other Long-Term Liabilities $559.0M $479.0M $553.0M
YoY Change 69.91% 44.66% 45.56%
Total Long-Term Liabilities $21.01B $21.66B $21.74B
YoY Change 60.88% 66.29% 65.99%
TOTAL LIABILITIES
Total Short-Term Liabilities $4.194B $3.452B $3.452B
Total Long-Term Liabilities $21.01B $21.66B $21.74B
Total Liabilities $25.20B $25.11B $27.78B
YoY Change 65.37% 56.2% 55.34%
SHAREHOLDERS EQUITY
Retained Earnings $927.0M $868.0M
YoY Change 37.95% 1622.36%
Common Stock $6.000M $6.000M
YoY Change 20.0% 26.34%
Preferred Stock
YoY Change
Treasury Stock (at cost) $663.0M $677.0M
YoY Change -5.15% -4.13%
Treasury Stock Shares
Shareholders Equity $16.45B $16.48B $16.48B
YoY Change
Total Liabilities & Shareholders Equity $44.39B $44.27B $44.27B
YoY Change 81.45% 81.57% 81.57%

Cashflow Statement

Concept 2024 Q1 2023 Q4 2023
OPERATING ACTIVITIES
Net Income $639.0M $688.0M $2.659B
YoY Change -39.08% 41.96% 54.39%
Depreciation, Depletion And Amortization $254.0M $260.0M $769.0M
YoY Change 56.79% 65.17% 22.82%
Cash From Operating Activities $596.0M $1.508B $4.421B
YoY Change -51.19% 44.94% 52.14%
INVESTING ACTIVITIES
Capital Expenditures $512.0M $603.0M $1.595B
YoY Change 77.16% 90.81% 32.69%
Acquisitions $5.015B
YoY Change
Other Investing Activities -$1.000M -$42.00M -$35.00M
YoY Change -203.36% -17.75%
Cash From Investing Activities -$578.0M -$645.0M -$6.404B
YoY Change -1329.79% 134.22% 462.13%
FINANCING ACTIVITIES
Cash Dividend Paid $578.0M $1.839B
YoY Change 35.36% 10.02%
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net $0.00 $1.300B
YoY Change -100.0% 45.12%
Cash From Financing Activities -$291.0M -809.0M $2.101B
YoY Change -63.99% 42.67% -224.11%
NET CHANGE
Cash From Operating Activities $596.0M 1.508B $4.421B
Cash From Investing Activities -$578.0M -645.0M -$6.404B
Cash From Financing Activities -$291.0M -809.0M $2.101B
Net Change In Cash -$273.0M 54.00M $118.0M
YoY Change -159.35% -72.73% 59.81%
FREE CASH FLOW
Cash From Operating Activities $596.0M $1.508B $4.421B
Capital Expenditures $512.0M $603.0M $1.595B
Free Cash Flow $84.00M $905.0M $2.826B
YoY Change -90.99% 24.93% 65.85%

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<div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Use of Estimates</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> - The preparation of our Consolidated Financial Statements and related disclosures in accordance with GAAP requires us to make estimates and assumptions with respect to values or conditions that cannot be known with certainty that affect the reported amounts on our Consolidated Financial Statements. Items that may be estimated include, but are not limited to, the economic useful life of assets, fair value of assets, liabilities and equity-method investments, obligations under employee benefit plans, allowance for credit losses, expenses for services received but for which no invoice has been received, provision for income taxes, including any deferred tax valuation allowances, the results of litigation and various other recorded or disclosed amounts. In addition, a portion of our revenues and cost of sales and fuel are recorded based on current month prices and estimated volumes. The estimates are reversed in the following month when we record actual volumes. </span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We evaluate our estimates on an ongoing basis using historical experience, consultation with experts and other methods we consider reasonable based on the particular circumstances. Nevertheless, actual results may differ significantly from the estimates. Any effects on our financial position or results of operations from revisions to these estimates are recorded in the period when the facts that give rise to the revision become known.</span></div>
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<div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Derivatives and Risk Management</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> - We utilize derivatives to reduce our market-risk exposure to commodity price and interest-rate fluctuations and to achieve more predictable cash flows. We record all derivative instruments at fair value, with the exception of normal purchases and normal sales transactions that are expected to result in physical delivery. Commodity price and interest-rate volatility may have a significant impact on the fair value of derivative instruments as of a given date. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, if so, the reason for holding it. The table below summarizes the various ways in which we account for our derivative instruments and the impact on our Consolidated Financial Statements:</span></div><div style="margin-top:5pt"><table style="border-collapse:collapse;display:inline-table;margin-bottom:5pt;vertical-align:text-bottom;width:100.000%"><tr><td style="width:1.0%"></td><td style="width:22.438%"></td><td style="width:0.1%"></td><td style="width:0.1%"></td><td style="width:2.723%"></td><td style="width:0.1%"></td><td style="width:1.0%"></td><td style="width:33.987%"></td><td style="width:0.1%"></td><td style="width:0.1%"></td><td style="width:2.723%"></td><td style="width:0.1%"></td><td style="width:1.0%"></td><td style="width:34.429%"></td><td style="width:0.1%"></td></tr><tr><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:9pt;font-weight:400;line-height:100%"> </span></td><td colspan="3" style="border-bottom:2pt solid #000000;padding:2px 1pt;text-align:left;vertical-align:bottom"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:9pt;font-weight:400;line-height:100%"> </span></td><td colspan="9" style="padding:2px 1pt;text-align:center;vertical-align:bottom"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:9pt;font-weight:700;line-height:100%">Recognition and Measurement</span></td></tr><tr><td colspan="6" style="border-top:2pt solid #000000;padding:2px 1pt;text-align:left;vertical-align:bottom"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:9pt;font-weight:700;line-height:100%">Accounting Treatment</span></td><td colspan="3" style="border-top:2pt solid #000000;padding:2px 1pt;text-align:center;vertical-align:bottom"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:9pt;font-weight:700;line-height:100%">Balance Sheet</span></td><td colspan="3" style="border-top:2pt solid #000000;padding:2px 1pt;text-align:left;vertical-align:bottom"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:9pt;font-weight:400;line-height:100%"> </span></td><td colspan="3" style="border-top:2pt solid #000000;padding:2px 1pt;text-align:center;vertical-align:bottom"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:9pt;font-weight:700;line-height:100%">Income Statement</span></td></tr><tr><td colspan="3" style="background-color:#cceeff;border-top:2pt solid #000000;padding:2px 1pt;text-align:left;vertical-align:top"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:9pt;font-weight:400;line-height:120%">Normal purchases and<br/>normal sales</span></td><td colspan="3" style="background-color:#cceeff;border-top:2pt solid #000000;padding:2px 1pt;text-align:right;vertical-align:top"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:9pt;font-weight:400;line-height:100%">-</span></td><td colspan="3" style="background-color:#cceeff;border-top:2pt solid #000000;padding:2px 1pt;text-align:left;vertical-align:top"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:9pt;font-weight:400;line-height:100%">Fair value not recorded</span></td><td colspan="3" style="background-color:#cceeff;border-top:2pt solid #000000;padding:2px 1pt;text-align:right;vertical-align:top"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:9pt;font-weight:400;line-height:100%">-</span></td><td colspan="3" style="background-color:#cceeff;border-top:2pt solid #000000;padding:2px 1pt;text-align:left;vertical-align:top"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:9pt;font-weight:400;line-height:100%">Change in fair value not recognized in earnings</span></td></tr><tr><td colspan="3" style="background-color:#ffffff;border-top:2pt solid #000000;padding:2px 1pt;text-align:left;vertical-align:top"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:9pt;font-weight:400;line-height:120%">Mark-to-market</span></td><td colspan="3" style="background-color:#ffffff;border-top:2pt solid #000000;padding:2px 1pt;text-align:right;vertical-align:top"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:9pt;font-weight:400;line-height:100%">-</span></td><td colspan="3" style="background-color:#ffffff;border-top:2pt solid #000000;padding:2px 1pt;text-align:left;vertical-align:top"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:9pt;font-weight:400;line-height:100%">Recorded at fair value</span></td><td colspan="3" style="background-color:#ffffff;border-top:2pt solid #000000;padding:2px 1pt;text-align:right;vertical-align:top"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:9pt;font-weight:400;line-height:100%">-</span></td><td colspan="3" style="background-color:#ffffff;border-top:2pt solid #000000;padding:2px 1pt;text-align:left;vertical-align:top"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:9pt;font-weight:400;line-height:100%">Change in fair value recognized in earnings</span></td></tr><tr><td colspan="3" style="background-color:#cceeff;border-top:2pt solid #000000;padding:2px 1pt;text-align:left;vertical-align:top"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:9pt;font-weight:400;line-height:100%">Cash flow hedge</span></td><td colspan="3" style="background-color:#cceeff;border-top:2pt solid #000000;padding:2px 1pt;text-align:right;vertical-align:top"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:9pt;font-weight:400;line-height:100%">-</span></td><td colspan="3" style="background-color:#cceeff;border-top:2pt solid #000000;padding:2px 1pt;text-align:left;vertical-align:top"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:9pt;font-weight:400;line-height:120%">The gain or loss on the<br/>derivative instrument is reported initially as a<br/>component of accumulated other<br/>comprehensive income (loss)</span></td><td colspan="3" style="background-color:#cceeff;border-top:2pt solid #000000;padding:2px 1pt;text-align:right;vertical-align:top"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:9pt;font-weight:400;line-height:100%">-</span></td><td colspan="3" style="background-color:#cceeff;border-top:2pt solid #000000;padding:2px 1pt;text-align:left;vertical-align:top"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:9pt;font-weight:400;line-height:120%">The gain or loss on the derivative instrument is reclassified out of accumulated other comprehensive income (loss) into earnings when the forecasted transaction affects earnings</span></td></tr><tr><td colspan="3" style="background-color:#ffffff;border-top:2pt solid #000000;padding:2px 1pt;text-align:left;vertical-align:top"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:9pt;font-weight:400;line-height:100%">Fair value hedge</span></td><td colspan="3" style="background-color:#ffffff;border-top:2pt solid #000000;padding:2px 1pt;text-align:right;vertical-align:top"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:9pt;font-weight:400;line-height:100%">-</span></td><td colspan="3" style="background-color:#ffffff;border-top:2pt solid #000000;padding:2px 1pt;text-align:left;vertical-align:top"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:9pt;font-weight:400;line-height:100%">Recorded at fair value</span></td><td colspan="3" style="background-color:#ffffff;border-top:2pt solid #000000;padding:2px 1pt;text-align:right;vertical-align:top"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:9pt;font-weight:400;line-height:100%">-</span></td><td colspan="3" style="background-color:#ffffff;border-top:2pt solid #000000;padding:2px 1pt;text-align:left;vertical-align:top"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:9pt;font-weight:400;line-height:120%">The gain or loss on the derivative instrument is<br/>recognized in earnings</span></td></tr><tr><td colspan="3" style="background-color:#cceeff;border-bottom:2pt solid #000000;padding:2px 1pt;text-align:left;vertical-align:top"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:9pt;font-weight:400;line-height:100%"> </span></td><td colspan="3" style="background-color:#cceeff;border-bottom:2pt solid #000000;padding:2px 1pt;text-align:right;vertical-align:top"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:9pt;font-weight:400;line-height:100%">-</span></td><td colspan="3" style="background-color:#cceeff;border-bottom:2pt solid #000000;padding:2px 1pt;text-align:left;vertical-align:top"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:9pt;font-weight:400;line-height:120%">Change in fair value of the hedged item is<br/>recorded as an adjustment to book value</span></td><td colspan="3" style="background-color:#cceeff;border-bottom:2pt solid #000000;padding:2px 1pt;text-align:right;vertical-align:top"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:9pt;font-weight:400;line-height:100%">-</span></td><td colspan="3" style="background-color:#cceeff;border-bottom:2pt solid #000000;padding:2px 1pt;text-align:left;vertical-align:top"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:9pt;font-weight:400;line-height:120%">Change in fair value of the hedged item is<br/>recognized in earnings</span></td></tr></table></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">To reduce our exposure to fluctuations in natural gas, NGLs, Refined Products, condensate and crude oil prices, we periodically enter into futures, forward purchases and sales, options or swap transactions in order to hedge anticipated purchases and sales of natural gas, NGLs, Refined Products, condensate and crude oil. Treasury locks and interest-rate swaps are used from time to time to manage interest-rate risk. Under certain conditions, we designate our derivative instruments as a hedge of exposure to changes in fair values or cash flows. We formally document all relationships between hedging instruments and hedged items, as well as risk-management objectives and strategies for undertaking various hedge transactions, and methods for assessing and testing correlation and hedge effectiveness. We specifically identify the forecasted transaction that has been designated as the hedged item in a cash flow hedge relationship. We assess hedging relationships at the inception of the hedge, and periodically thereafter, to determine whether the hedging relationship is, and is expected to remain, highly effective. We also document our normal purchases and normal sales transactions that we expect to result in physical delivery and that we elect to exempt from derivative accounting treatment.</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The realized revenues and purchase costs of our derivative instruments not considered held for trading purposes and derivatives that qualify as normal purchases or normal sales that are expected to result in physical delivery are reported on a gross basis. </span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Cash flows from futures, forwards, options and swaps that are accounted for as hedges are included in the same category as the cash flows from the related hedged items in our Consolidated Statements of Cash Flows.</span></div>
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