| Schedule of Derivative Instruments |
The following table provides a summary of the notional and fair values of our derivative instruments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | December 31, 2025 | | (in U.S. Dollars; notional in millions, fair value in thousands) | | | Fair Value | | | | Fair Value | | Notional
Amount | | Derivative
Assets | | Derivative
Liabilities | | Notional
Amount | | Derivative
Assets | | Derivative
Liabilities | | Derivatives designated as hedging instruments | | | | | | | | | | | | | Interest rate swaps | $ | 400.0 | | | $ | 1,424 | | | — | | | $ | 400.0 | | | — | | | $ | 2,346 | | | Derivatives not designated as hedging instruments | | | | | | | | | | | | | Foreign currency forward contracts | 19.0 | | | — | | | $ | 38 | | | — | | | — | | | — | | | Embedded derivatives | 243.0 | | (a) | 2,561 | | | 3,891 | | | 264.4 | | | $ | 1,162 | | | 1,872 | | | Total | $ | 662.0 | | | $ | 3,985 | | | $ | 3,929 | | | $ | 664.4 | | | $ | 1,162 | | | $ | 4,218 | |
(a)Represents the total notional amounts for certain of the Company’s supply and sales contracts accounted for as embedded derivatives.
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| Schedule of Derivative Instruments, Gain (Loss) |
The following table summarizes the activities of our derivative instruments for the periods presented, and the line item they are recorded in the Consolidated Statements of Operations and Comprehensive Income: | | | | | | | | | | | | | | | | | | | | | | | | | (thousands of U.S. dollars) | Three Months Ended June 30, | | Six Months Ended June 30, | | 2026 | | 2025 | | 2026 | | 2025 | Realized gain on interest rate derivatives recorded in interest expense, net(a) | $ | (2) | | | $ | (334) | | | $ | (45) | | | $ | (673) | | | Unrealized (gain) loss on embedded derivatives recorded in other income, net | (512) | | | (3,599) | | | 682 | | | (1,994) | | | Realized gain on foreign currency forward contracts recorded in foreign exchange (gain) loss | (1,830) | | | (7,606) | | | (614) | | | (8,170) | | | Unrealized loss (gain) on foreign currency forward contracts recorded in foreign exchange (gain) loss | 17 | | | (1,144) | | | 38 | | | (704) | |
(a) For the three and six months ended June 30, 2026 and 2025, amounts represent settlement payments on interest rate swaps. |
| Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis |
The following table discloses the fair value of our financial assets and liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | As of June 30, 2026 | | | Fair Value | | (thousands of U.S. dollars) | Carrying
Amount | | Level 1 | | Level 2 | | Level 3 | Derivatives designated as hedging instruments(a) | | | | | | | | | Interest rate swap asset | $ | 1,424 | | | $ | — | | | $ | 1,424 | | | $ | — | | Derivatives not designated as hedging instruments(b) | | | | | | | | | Foreign currency forward contract liabilities | 38 | | | — | | | 38 | | | — | | | Embedded derivative assets | 2,561 | | | — | | | 2,561 | | | — | | | Embedded derivative liabilities | 3,891 | | | — | | | 3,891 | | | — | | Current portion of long-term debt(c) | | | | | | | | | Term Loan, due 2031 | 13,923 | | | — | | | 14,159 | | | — | | Long-Term Debt(c) | | | | | | | | | Secured Notes, due 2031 | 747,160 | | | — | | | 774,375 | | | — | | | Term Loan, due 2031 | 1,378,374 | | | — | | | 1,401,756 | | | — | | Finance Lease Obligations (with current portion)(d) | 95,307 | | | — | | | 95,307 | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | As of December 31, 2025 | | | Fair Value | | (thousands of U.S. dollars) | Carrying
Amount | | Level 1 | | Level 2 | | Level 3 | Derivatives designated as hedging instruments(a) | | | | | | | | | Interest rate swap liability | $ | 2,346 | | | $ | — | | | $ | 2,346 | | | $ | — | | Derivatives not designated as hedging instruments(b) | | | | | | | | | Embedded derivative assets | 1,162 | | | — | | | 1,162 | | | — | | | Embedded derivative liabilities | 1,872 | | | — | | | 1,872 | | | — | | Current portion of long-term debt(c) | | | | | | | | | Term Loan, due 2031 | 13,973 | | | — | | | 14,327 | | | — | | Long-Term Debt(c) | | | | | | | | | Secured Notes, due 2031 | 746,871 | | | — | | | 789,375 | | | — | | | Term Loan, due 2031 | 1,379,853 | | | — | | | 1,410,539 | | | — | | Finance Lease Obligations (with current portion)(d) | 97,300 | | | — | | | 97,300 | | | — | |
(a)Derivatives designated as hedging instruments are measured at fair value with changes in fair value recorded as a component of accumulated other comprehensive income (loss). Interest rate swaps are valued using pricing models that incorporate observable market inputs including interest rate curves and yield curves. (b)Derivatives that are not designated as hedging instruments are measured at fair value with gains or losses recognized immediately in the Consolidated Statements of Operations and Comprehensive Income. Embedded derivatives are valued using internally developed models that rely on observable market inputs, including foreign currency forward curves. Foreign currency forward contracts are valued by reference to changes in foreign currency exchange rates over the life of the contract. (c)Carrying amounts of current portion of long-term debt and long-term debt instruments are reported net of discounts and debt issuance costs. The estimated fair value of these instruments are based upon quoted prices for the Term Loan and the Secured Notes in inactive markets as provided by an independent fixed income security pricing service. (d)Fair value approximates carrying value.
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