During the second quarter of 2026, the Company entered into a new, five-year operating lease for a railroad locomotive. The lease fees are fixed with no option to purchase and no upfront fees or residual value guarantees. The Company determines lease existence and classification at inception when an agreement conveys the right to control the identified property for a period of time in exchange for consideration. As operating leases do not provide a readily determinable implicit interest rate, the Company uses an incremental borrowing rate based on information available at the commencement date in determining present value of the lease payments. The discount rate per annum was 5.6%. The remaining term of the lease is four years and nine months.

At  June 30, 2026, an operating right-of-use asset of $324 was recorded in other assets, a current operating lease liability of $61 was recorded in accrued expenses and other current liabilities, and a noncurrent operating lease liability of $263 was recorded in other noncurrent liabilities.  Operating lease expense for both the three and six months ended June 30, 2026, was $19.

Following are maturities of the lease liability at June 30, 2026.

During the year ended December 31, 2025, the Company entered into a supply agreement with a third party that obligates the third party to construct a nitrogen plant to be used solely by the Company. The third party is also obligated to make certain capital improvements during the term of the agreement. The Company is obligated to provide and maintain related infrastructure and utilities and pay a monthly fee. The arrangement for the use of the nitrogen plant meets the definition of a lease under ASC Topic 842, Leases, as the Company will receive all output associated with it.  Based on terms outlined in the agreement, the Company expects the lease with an estimated amount of $8,950 to $10,900 to be classified as a finance lease when the nitrogen plant is placed in service, which is expected to occur in 2027.