Note 7 - Derivative Instruments

6 Months Ended

Jun. 30, 2025

Notes to Financial Statements

Derivative Instruments and Hedging Activities Disclosure [Text Block]

Note 7—Derivative Instruments

The primary risk managed by the Company using derivative instruments is commodity price risk, which is accounted for in accordance with ASC 815 — Derivatives and Hedging. Natural gas and electricity put and call options and swaps are entered into as hedges against unfavorable fluctuations in market prices of natural gas and electricity. The Company does not apply hedge accounting to these options or swaps, therefore the changes in fair value are recorded in earnings. By using derivative instruments to mitigate exposures to changes in commodity prices, the Company exposes itself to credit risk and market risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes the Company, which creates credit risk. The Company minimizes the credit or repayment risk in derivative instruments by entering into transactions with high-quality counterparties. At June 30, 2025, GRE’s swaps and options were traded on the Intercontinental Exchange.

The summarized volume of GRE’s outstanding contracts and options at June 30, 2025 was as follows (MWh – Megawatt hour and Dth – Decatherm):

Settlement Dates	Volume
	Electricity (in MWH)		Gas (in Dth)
Third quarter of 2025		37,520		152,500
Fourth quarter of 2025		—		1,070,001
First quarter of 2026		—		1,350,000
Second quarter of 2026		—		—
Third quarter of 2026		9,152		—
Fourth quarter of 2026		—		152,500
First quarter of 2027		—		225,000
Second quarter of 2027		—		—
Third quarter of 2027		3,440		—

The fair value of outstanding derivative instruments recorded in the accompanying condensed consolidated balance sheets were as follows:

		June 30,		December 31,
Asset Derivatives	Balance Sheet Location	2025		2024
		(in thousands)
Derivatives not designated or not qualifying as hedging instruments:
Energy contracts and options1	Other current assets	$	146	$	583
Energy contracts and options	Other assets		352		285
Total derivatives not designated or not qualifying as hedging instruments — Assets		$	498	$	868

		June 30,		December 31,
Liability Derivatives	Balance Sheet Location	2025		2024
		(in thousands)
Derivatives not designated or not qualifying as hedging instruments:
Energy contracts and options1	Other current liabilities	$	1,325	$	428
Energy contracts and options	Other liabilities		56		45
Total derivatives not designated or not qualifying as hedging instruments — Liabilities		$	1,381	$	473

(1) The Company classifies derivative assets and liabilities as current based on the cash flows expected to be incurred within the following 12 months.

The effects of derivative instruments on the condensed consolidated statements of operations was as follows:

		Amount of Loss Recognized on Derivatives
Derivatives not designated or not qualifying as	Location of Gain	Three Months Ended June 30,				Six Months Ended June 30,
hedging instruments	Recognized on Derivatives	2025		2024		2025		2024
		(in thousands)				(in thousands)
Energy contracts and options	Cost of revenues	$	3,992	$	8,404	$	818	$	13,936