v3.26.1
Related Party Transaction (Predecessor)
6 Months Ended
Jun. 30, 2026
Related Party Transactions [Abstract]  
Related Party Transaction (Predecessor)

NOTE 19. RELATED PARTY TRANSACTION (pREDECESSOR)

Management Fees

On July 19, 2021, US Salt Holdings entered into a Professional Services Agreement with Emerald Lake, who would provide financial and management consulting services. Emerald Lake agreed to consult with the US Salt’s Board of Directors and the oversight of management on business and financial matters including company strategy, budgeting of future investments, acquisition and divestiture strategies, and debt and equity financings. In consideration of Emerald Lake’s services, US Salt Holdings paid Emerald Lake an annual management fee (the "Management Fee") the greater of $1.9 million or 1% of Emerald Lake Investment. The Management Fee was payable in cash in quarterly installments equal to the greater of $0.5 million and 0.25% of Emerald Lake Investment. The Management Fees were $0.3 million, $0.5 million, and $1.0 million for the period from January 1, 2026 to February 26, 2026 (Predecessor), the three months ended June 30, 2025 (Predecessor), and the six months ended June 30, 2025 (Predecessor), respectively, and were reported in the general and administrative expenses in the accompanying Condensed Consolidated Statements of Operations. As of December 31, 2025 (Predecessor), there were no unpaid management fees in the accompanying Condensed Consolidated Balance Sheets.

Upon the consummation of the US Salt Acquisition, the Professional Services Agreement was terminated and no further Management Fees will be incurred.

USPH Class A and Unit Subscription Receivable

The activities of USPH Class A units and subscription notes receivable from employees and Board of Directors of US Salt are summarized as follows:

 

 

 

Predecessor

 

 

 

Period from January 1, 2026 to February 26, 2026

 

 

 

USPH Class A Units

 

Amount

 

Subscription Receivable

 

 

 

(in thousands)

 

(in millions)

 

(in millions)

 

Outstanding, December 31, 2025 (Predecessor)

 

 

0.9

 

$

1.0

 

$

0.1

 

Repayment

 

 

 

 

 

 

(0.1

)

Balance as of February 26, 2026 (Predecessor)

 

 

0.9

 

$

1.0

 

$

 

 

 

 

Predecessor

 

 

 

Three Months Ended June 30, 2025

 

 

 

USPH Class A Units

 

Amount

 

Subscription Receivable

 

 

 

(in thousands)

 

(in millions)

 

(in millions)

 

Balance as of March 31,2025 (Predecessor)

 

 

0.9

 

$

1.0

 

$

0.1

 

Repayment

 

 

 

 

 

 

 

Balance as of June 30,2025 (Predecessor)

 

 

0.9

 

$

1.0

 

$

0.1

 

 

 

 

Predecessor

 

 

 

Six Months Ended June 30, 2025

 

 

 

USPH Class A Units

 

Amount

 

Subscription Receivable

 

 

 

(in thousands)

 

(in millions)

 

(in millions)

 

Outstanding, December 31, 2024 (Predecessor)

 

 

0.9

 

$

1.0

 

$

0.2

 

Repayment

 

 

 

 

 

 

(0.1

)

Balance as of June 30,2025 (Predecessor)

 

 

0.9

 

$

1.0

 

$

0.1