The Company has domestic leases on federal, state, and private land in California, Colorado, Idaho, Nevada, New Mexico, Utah, and Washington, along with leases for drilling rigs and related geothermal development equipment, office space, and field vehicles.

Bureau of Land Management (“BLM”) geothermal leases provide the geothermal lessee the right and privilege to drill for, extract, produce, remove, utilize, sell, and dispose of geothermal resources on certain lands, together with the right to build and maintain necessary improvements thereon. The actual ownership of the geothermal resources and other minerals beneath the land is retained in the federal mineral estate. The geothermal lease does not grant the geothermal lessee the exclusive right to develop the lands, although the geothermal lessee does hold the exclusive right to develop geothermal resources within the lands. Since BLM leases do not grant to the geothermal lessee the exclusive right to use the surface of the land or extract minerals, BLM may grant rights to others for activities that do not unreasonably interfere with the geothermal lessee’s uses of the same land.

The Company recognized $2.6 million and $2.0 million, respectively, in total lease expense as reflected in Operating lease expense in the Condensed Consolidated Statements of Operations for the three months ended March 31, 2026 and 2025. Total cash payments related to leases were $6.6 million and $0.6 million, respectively, for the three months ended March 31, 2026 and 2025. Non-cash lease activity consisted of right-of-use (“ROU”) assets obtained in exchange for lease liabilities of $38.0 million for the three months ended March 31, 2026, compared to $0.1 million for the three months ended March 31, 2025.

The following tables present information regarding operating leases recorded on the Condensed Consolidated Balance Sheets where the Company is the lessee for the periods indicated.


(Dollars in thousands)	As of March 31, 2026		As of December 31, 2025
Carrying values by asset category
ROU Asset:
Geothermal land leases	$	48,071	$	45,609
Equipment	36,612		6,188
Office space	6,180		6,635
Vehicles	249		281
Total	$	91,112	$	58,713
Lease Liability(1):
Geothermal land leases	$	67,053	$	62,744
Equipment	36,140		6,300
Office space	8,249		8,144
Vehicles	242		273
Total	$	111,684	$	77,461


By asset category	As of March 31, 2026		As of December 31, 2025

Weighted average remaining term
Geothermal land leases	14 years		14 years
Equipment	4 years		9 years
Office space	3 years		3 years
Vehicles	2 years		2 years

Weighted average discount rate(2):
Geothermal land leases	11.4	%	11.4	%
Equipment	8.3	%	12.0	%
Office space	8.1	%	8.7	%
Vehicles	9.6	%	9.6	%

(1) The short-term and long-term lease liability totals $25.3 million and $86.3 million as of March 31, 2026, respectively, and $4.8 million and $72.6 million as of December 31, 2025.

The IBR is a significant estimate related to the Company’s operating lease liabilities. It was calculated by determining a credit rating based on credit metrics of comparable publicly traded companies, developing a yield curve for publicly traded debt matching the credit rating, and then developing a weighted average IBR based on those yield curves.

The following is a schedule showing the Company’s future minimum lease payments associated with the operating leases together with the present value of the net minimum lease payments for the periods indicated.


(Dollars in thousands)	As of March 31, 2026

2026	$	23,897
2027	17,827
2028	7,132
2029	13,419
2030	12,921
Thereafter	139,632
Total minimum lease payments	$	214,828
Less: Amount representing interest	103,144
Total lease obligation	$	111,684
Less: Current lease obligation	25,335
Long-term lease obligation	$	86,349