Quarterly report pursuant to Section 13 or 15(d)

Derivative Instruments (Tables)

v3.21.4
Derivative Instruments (Tables)
 9 Months Ended
Sep. 30, 2021
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]  
Schedule of Assumptions to Estimate the Fair Value
The Company used the following assumptions to estimate the fair value of the Private Placement Warrants:
As of September 15,
2021
at Initial
Measurement
 September 30,
2021
Stock price
 $18.05 $18.94
Exercise price
 $11.50 $11.50
Volatility
 45.8  % 46.3  %
Expected term (years)
 5.0 5.0
Risk-free interest rate
 0.79  % 0.97  %
Schedule of Fair Value of Warrant Liabilities
The change in the fair value of the warrant liabilities is recognized in gain (loss) on derivative contracts in the Consolidated Condensed Statement of Operations. The changes of the Redeemable Warrants and Private Placement Warrants through September 30, 2021 is as follows:
(in thousands)

Warrant liabilities as of September 15, 2021 (Closing Date)
 $ 150,153 
Change in fair value - Closing Date through September 30, 2021
 10,477 
Warrant liabilities as of September 30, 2021
 $ 160,630 
Schedule of Balance Sheet Effect of Fair Value
The following summarizes the balance sheet classification and fair value of the Company’s derivative instruments:
(in thousands)
 September 30,
2021		 December 31,
2020
Natural gas swap asset (included in Other long-term assets)
 $ 391  $ — 
Warrant liabilities (included in Derivative liabilities)
 (160,630) — 
Schedule of Income Statement Effect of Gains (Losses) Related to Derivative Instruments
The following table summarizes the income statement effect of gains and losses related to derivative instruments:
(in thousands)
 Three Months Ended Nine Months Ended
September 30,
2021		 September 30,
2020		 September 30,
2021		 September 30,
2020
Cost of energy
 $ —  $ —  $ —  $ — 
Gain (loss) on gas swap contracts
 64  —  64  — 
Gain (loss) on warrant liabilities
 (10,477) —  (10,477) — 
Total
 $ (10,413) $ —  $ (10,413) $ — 
Aria Energy LLC  
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]  
Schedule of Balance Sheet Effect of Fair Value
(in thousands) December 31, 2020
Natural gas swap liability $ 1,268 
Schedule of Income Statement Effect of Gains (Losses) Related to Derivative Instruments
(in thousands) July 1 to September 14, 2021 July 1 to September 30, 2020 January 1 to September 14, 2021 January 1 to September 30, 2020
Natural gas swap - unrealized gain (loss) $ 574  $ 261  $ 1,129  $ (61)