v3.26.3
INVESTMENTS IN OTHER ENTITIES AND VARIABLE INTEREST ENTITIES
 9 Months Ended
Sep. 30, 2026
Equity Method Investments and Joint Ventures [Abstract]  
INVESTMENTS IN OTHER ENTITIES AND VARIABLE INTEREST ENTITIES
2. INVESTMENTS IN OTHER ENTITIES AND VARIABLE INTEREST ENTITIES
The Company’s VIEs consist of landfill or dairy manure RNG facilities that are either under construction or in operation. OPAL’s share of design capacity for these facilities ranges from approximately 43,750 MMBtu to 1,327,140 MMBtu per year. These entities are financed through the Opal Term Loan, the Sunoma Loan, or the Paragon Loan. The Paragon Loan was obtained directly by the joint venture and is not consolidated.
VIEs for which the Company is not the primary beneficiary are accounted for under the equity method. As of September 30, 2026, Sunoma, Central Valley and CMS were consolidated VIEs.
The condensed consolidated balance sheets summarize the major consolidated balance sheet items for its consolidated VIEs as of September 30, 2026 and December 31, 2025. The information is presented on an aggregate basis based on similar risk and reward characteristics and the nature of our involvement with the VIEs. All VIEs are RNG facilities reported under the RNG Fuel Supply segment, and the Company’s interests are primarily equity-based.
The following table presents the Company's ownership interests and carrying values of Investment in Other Entities:
Pine BendNoble RoadGREPLand2GasParagonOtherTotal
Percentage of ownership50 %50 %20 %50 %50 %50 %
Balance at December 31, 2025$19,864 $20,755 $594 $27,284 $138,226 $— $206,723 
Balance at September 30, 2026$18,380 $19,519 $289 $31,988 $134,456 $8,768 $213,400 
As of September 30, 2026 and December 31, 2025, the carrying value of the Company’s equity method investments exceeded its proportionate share of the underlying net assets of its investees by $117,008 and $122,165, respectively. This basis difference primarily relates to the gain recognized upon the deconsolidation of certain RNG project entities, which increased the Company’s investment basis. The Company determined that this basis difference is attributable to construction in progress and will be amortized over the related assets’ estimated useful life of 20 years beginning when the assets are placed in service. The amortization of this basis difference, which reduces equity in earnings, was $1,738 and $1,738, reflected in income from equity method investments in the condensed consolidated statements of operations for the three months ended September 30, 2026 and 2025, respectively. The amortization of this basis difference was $5,157 and $5,157 for the nine months ended September 30, 2026 and 2025, respectively.
The ITC basis difference, which reduces the carrying value of the Company’s investments in other entities, was $23,543 and $24,500 as of September 30, 2026 and December 31, 2025, respectively. Amortization of the ITC basis difference increased income from equity method investments by $957 and $606 for the nine months ended September 30, 2026 and 2025, respectively. Amortization of the ITC basis difference increased income from equity method investments by $319 and $202 for the three months ended September 30, 2026 and 2025, respectively.
The following table summarizes revenue and gross profit from equity method investments:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2026202520262025
Revenue$36,024 $26,570 $97,934 $80,844 
Gross profit6,699 6,785 16,600 21,167 
A summary of financial information for our portion of the assets and liabilities in equity method investees in the aggregate is as follows:
September 30,
2026		December 31,
2025
Current assets$33,037 $27,566 
Noncurrent assets326,817 305,900 
Total assets359,854 333,466 
Current liabilities52,068 35,874 
Noncurrent liabilities73,621 81,288 
Total liabilities$125,689 $117,162 
The Company’s maximum exposure to loss related to its unconsolidated entities generally consists of its equity investment in such entities. In addition, the Company has certain guarantee and credit support obligations related to Land2Gas LLC, as further described in Note 12, Commitments and Contingencies.