v3.26.1
INVESTMENTS IN OTHER ENTITIES AND VARIABLE INTEREST ENTITIES
 3 Months Ended
Mar. 31, 2026
Equity Method Investments and Joint Ventures [Abstract]  
INVESTMENTS IN OTHER ENTITIES AND VARIABLE INTEREST ENTITIES
2. INVESTMENTS IN OTHER ENTITIES AND VARIABLE INTEREST ENTITIES
The Company’s VIEs consist of landfill or dairy manure RNG facilities that are either under construction or in operation. OPAL’s share of design capacity for these facilities ranges from approximately 43,750 MMBtu to 1,327,140 MMBtu per year. These entities are financed through the Opal Term Loan, the Sunoma Loan, or the Paragon Loan. The Paragon Loan was obtained directly by the joint venture and is not consolidated.
VIEs for which the Company is not the primary beneficiary are accounted for under the equity method. As of March 31, 2026, Sunoma, Central Valley and CMS were consolidated VIEs.
The condensed consolidated balance sheets summarize the major consolidated balance sheet items for consolidated VIEs as of March 31, 2026 and December 31, 2025. The information is presented on an aggregate basis based on similar risk and reward characteristics and the nature of our involvement with the VIEs. All VIEs are RNG facilities reported under the RNG Fuel Supply segment, and the Company’s interests are primarily equity-based.
The following table presents the Company's ownership interests and carrying values of Investment in Other Entities:
Pine BendNoble RoadGREPLand2GasParagonOtherTotal
Percentage of ownership50 %50 %20 %50 %50 %50 %
Balance at December 31, 2025$19,864 $20,755 $594 $36,554 $153,456 $— $231,223 
Balance at March 31, 2026$18,604 $19,710 $323 $34,811 $150,684 $150 $224,282 
As of March 31, 2026 and December 31, 2025, the carrying value of the Company’s equity method investments exceeded its proportionate share of the underlying net assets of its investees by $120,464 and $122,165, respectively. This basis difference primarily relates to the gain recognized upon the deconsolidation of certain RNG project entities, which increased the Company’s investment basis. The Company determined that this basis difference is attributable to construction in progress and will be amortized over the related assets’ estimated useful life of 20 years beginning when the assets are placed in service. The amortization of this basis difference, which reduces equity in earnings, was $1,700 and $1,700 and reflected in loss from equity method investments in the condensed consolidated statements of operations for the three months ended March 31, 2026 and 2025, respectively.
The following table summarizes the loss from equity method investments:
Three Months Ended
March 31,
20262025
Revenue$27,311 $22,517 
Gross profit3,244 2,815 
Net loss (1)
(2,284)(2,266)
(1) Net loss from equity method investments represents the Company's portion of the net loss from equity method investments including amortization of any basis differences.
A summary of financial information for our portion of the assets and liabilities in equity method investees in the aggregate is as follows:
March 31,
2026		December 31,
2025
Current assets$15,837 $27,566 
Noncurrent assets306,088 305,900 
Total assets321,925 333,466 
Current liabilities41,082 35,874 
Noncurrent liabilities77,702 81,288 
Total liabilities$118,784 $117,162 
The Company’s maximum exposure to loss is limited to its equity investment in the unconsolidated entities.