Derivative Instruments

3 Months Ended

Mar. 31, 2022

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 March 31, 2022, the Company had natural gas swap contracts outstanding with notional amounts totaling 5,900,000 metric million British thermal units maturing in the first quarter of 2023. As of December 31, 2021, the Company had 6,100,000 metric million British thermal unit 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 $13.2 million, which includes $1.5 million of realized losses, for the three months ended March 31, 2022. The Company records all derivative instruments at fair value and had a liability of $7.6 million as of March 31, 2022 in other current liabilities in the accompanying Condensed Balance Sheets and had an asset of 4.0 million as of December 31, 2021 in prepaid expenses and other in the accompanying Condensed Balance Sheets.