11. Asset Acquisition

On May 18, 2026, we acquired full ownership of the carbon capture and sequestration project currently underway at our El Dorado, Arkansas facility (the “Project”) from Lapis Carbon Solutions. The total purchase price and remaining completion capital associated with the Project are estimated at approximately $95 million. The acquisition was accounted for as an asset acquisition.

Under the purchase and sale agreement for the acquisition, the contingent purchase consideration becomes payable in three separate installments upon achievement of three defined Project milestones and completion activities, none of which had occurred as of June 30, 2026. No amount of the purchase price was paid during the three and six months ended June 30, 2026. As of June 30, 2026, management concluded that the contractual conditions giving rise to the contingent purchase consideration had not met the applicable recognition criteria. Accordingly, no liability for the contingent purchase consideration has been recognized as of June 30, 2026.

We continue to incur development and construction costs associated with the Project, which are capitalized as incurred in accordance with the Company’s accounting policies. For the three and six months ended June 30, 2026, our cash expenditure on the Project was $10.8 million. This amount did not include any portion of the acquisition purchase price. We will recognize the contingent purchase consideration as an additional cost of the acquired assets when payment becomes probable and reasonably estimable.