LEASES:

6 Months Ended

Jun. 30, 2026

NOTE 7 — LEASES:

The Company has operating leases for power generating facilities, vehicles and properties. The Company recognizes leasing expenses for these leases on a straight-line basis over the lease term. Some of the Company’s leases include both lease and non-lease components which are accounted for separately. The Company’s leases have remaining lease terms for periods ranging from less than one year to seven years, and do not include options to extend the leases. The Company’s lease agreements do not contain options to purchase the leased assets or to terminate the leases before the expiration date. In addition, the Company’s lease contracts have no material residual value guarantees or material restrictive covenants. As none of the Company’s leases stipulate an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

The weighted average of the remaining lease term for the Company’s leases is approximately six years, and the weighted average discount rate for these leases is 5.02%.

The operating lease expense recognized in the six-month periods ended June 30, 2026 and 2025 was classified as follows (in millions):


Classification		2026		2025
Cost of sales (exclusive of depreciation, amortization and depletion)		$	57.4	$	57.6
Selling, general and administrative			0.1		(*)
Exploration			(*)		0.1
Total lease expense		$	57.5	$	57.7

Maturities of lease liabilities are as follows:


		Lease liabilities
Year		(in millions)
2026		$	58.6
2027			117.2
2028			117.2
2029			115.6
2030			108.0
After 2030			216.0
Total lease payments		$	732.5
Less: interest on lease liabilities			(102.4)
Present value of lease payments		$	630.1