v3.26.1
Financial Instruments and Fair Value Measurement
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Financial Instruments and Fair Value Measurement

Note 13. Financial Instruments and Fair Value Measurement

Due to their short-term maturity, the carrying amounts of cash and cash equivalents, restricted cash, accounts receivable, and accounts payable and other approximates their fair value. The estimated fair values of the Company’s outstanding debt under the fair value hierarchy as of June 30, 2026 and December 31, 2025 were as follows:

 

 

Fair value measurements as of

 

 

 

 

 

June 30, 2026 using:

 

 

Description

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Revolving credit facilities

 

$

—

 

 

$

315,659

 

 

$

—

 

 

$

315,659

 

Senior notes

 

 

—

 

 

 

692,640

 

 

 

—

 

 

 

692,640

 

 

 

$

—

 

 

$

1,008,299

 

 

$

—

 

 

$

1,008,299

 

 

 

 

Fair value measurements as of

 

 

 

 

 

December 31, 2025 using:

 

 

Description

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Revolving credit facilities

 

$

—

 

 

$

295,683

 

 

$

—

 

 

$

295,683

 

Senior notes

 

 

—

 

 

 

868,137

 

 

 

—

 

 

 

868,137

 

 

 

$

—

 

 

$

1,163,820

 

 

$

—

 

 

$

1,163,820

 

The carrying value of the revolving credit facilities classified as Level 2 approximates the fair value, as their variable interest rates, combined with the underlying collateral, reflect current market terms for similar secured instruments.

The fair value of the senior notes classified as Level 2 was determined using quoted prices in a dealer market, or using recent market transactions. The Company’s senior notes are not carried at fair value in the Interim Consolidated Balance Sheets as of June 30, 2026 or December 31, 2025. However, fair value disclosure is required. The carrying value of the Company’s senior notes, net of unamortized note issuance costs, was $1,269,370 as of June 30, 2026 (December 31, 2025 – $1,268,252).

Credit Risk

The Company’s exposure to credit losses may increase if its customers’ production and other costs are adversely affected by inflation, interest rate levels and tariffs. Although the Company has historically not experienced significant credit losses, it is possible that there could be a material adverse impact from potential adjustments of the carrying amount of trade receivables if the cash flows of the Company’s customers are adversely impacted by inflation, interest rate levels and tariffs. As of June 30, 2026, the Company has not had significant credit losses.

As of June 30, 2026, the carrying amount of cash and cash equivalents of $78,775, restricted cash of $5,000, and accounts receivable of $308,554 recorded in the Interim Consolidated Balance Sheet, net of any allowances for losses, represent the Company’s maximum exposure to credit risk.