INVENTORIES

3 Months Ended

Mar. 31, 2026

Inventories consisted of the following:


(in millions)	March 31, 2026		December 31, 2025
Crude oil and feedstocks	$	1,587.5	$	1,438.0
Refined products and blendstocks	1,311.7		1,260.5

Warehouse stock and other	179.0		177.6
	3,078.2		2,876.1
Lower of cost or market adjustment	—		(313.0)
Total inventories	$	3,078.2	$	2,563.1

At March 31, 2026, the replacement cost of inventories exceeded their carrying value under the last-in, first-out (“LIFO”) method by approximately $1.6 billion. During the three months ended March 31, 2026, the Company reversed the $313.0 million lower of cost or market (“LCM”) inventory reserve recorded at December 31, 2025. This reversal increased income from operations by $313.0 million and resulted in no LCM inventory reserve at March 31, 2026.

An actual valuation of inventories valued under the LIFO method is made at the end of each year based on inventory levels and costs at that time. During the year ended December 31, 2025, the Company recorded a pre-tax charge related to a LIFO layer decrement of $5.4 million in the Refining segment, primarily associated with the Martinez refinery.