For Petro Stopping Center, what activities are typically conducted through joint operations?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
Certain of the Company's activities, particularly in the oil production & operations and gas & low carbon energy businesses, are conducted through joint operations. The Company recognizes, on a line-by-line basis in the consolidated financial statements, its share of the assets, liabilities and expenses of these joint operations incurred jointly with the other partners, along with the Company's revenue from the sale of its share of the output and any liabilities and expenses that the Company has incurred in relation to the joint operation. For joint arrangements in a separate entity, judgement may be required as to whether the arrangement should be classified as a joint venture or if the legal form, contractual arrangements or other facts and circumstances indicate that the Company has rights to the assets and obligations for the liabilities of the arrangement, rather than rights to the net assets, and therefore should be classified as a joint operation. No such judgement made by the Company is considered significant.
Source: Item 23 — RECEIPTS **RECEIPTS (FDD pages 87–131)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, certain activities, specifically within the oil production & operations and gas & low carbon energy businesses, are conducted through joint operations. Petro Stopping Center recognizes its share of assets, liabilities, and expenses incurred jointly with other partners on a line-by-line basis in its consolidated financial statements. This includes revenue from the sale of its share of the output and any liabilities and expenses related to the joint operation.
For joint arrangements in a separate entity, Petro Stopping Center exercises judgment to classify the arrangement as either a joint venture or a joint operation. This classification depends on whether the company has rights to the assets and obligations for the liabilities of the arrangement, rather than rights to the net assets. The document indicates that no such judgment made by Petro Stopping Center is considered significant.
Additionally, the FDD provides financial details regarding sales to and purchases from joint ventures. In 2024, sales of LNG, crude oil and oil products, and natural gas to joint ventures amounted to $462 million, with an amount receivable of $202 million at December 31. Purchases of the same products, along with refinery operating costs and plant processing fees, from joint ventures totaled $164 million, with an amount payable of $1 million at December 31. These figures offer insight into the scale of Petro Stopping Center's transactions with its joint venture partners.