Derivative Instruments

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

Derivative Instruments

The Company enters into natural gas swap contracts from time to time to hedge the exposure to variability in expected

future cash flows associated with the fluctuations in the price of natural gas related to the Company’s forecasted sales. As of September 30, 2021, the Company had natural gas swap contracts outstanding with notional amounts totaling 2,500 million British thermal units maturing in the first quarter of 2022. As of December 31, 2020, the Company had no natural gas swap contracts outstanding.

The Company’s natural gas swap contracts economically hedge certain risks but are not designated as hedges for

financial reporting purposes. All changes in the fair value of these derivative instruments are recorded as other revenues in the

Condensed Statements of Operations. The Company recognized a loss of $5.8 million and $8.7 million for the three and nine ended September 30, 2021, respectively. The Company records all derivative instruments at fair value and had a liability of $5.8 million as of September 30, 2021 in other current liabilities in the accompanying Condensed Balance Sheets and no asset or liability as of December 31, 2020.