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Derivative Instruments and Hedging Activities

6 Months Ended

Jun. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

Note 6—Derivative Instruments and Hedging Activities

In October 2018, the Company executed two commodity swap contracts with TotalEnergies Gas & Power North America, an affiliate of TotalEnergies, for a total of 5.0 million diesel gallons annually from April 1, 2019 to June 30, 2024. These commodity swap contracts are used to manage diesel price fluctuation risks related to the natural gas fuel supply commitments the Company makes in its fueling agreements with fleet operators who participate in the Company’s truck financing program. These contracts are not designated as accounting hedges and as a result, changes in the fair value of these derivative instruments are recognized in “Product revenue” in the accompanying condensed consolidated statements of operations.

The Company has entered into fueling agreements with fleet operators under the Company’s truck financing program. Certain of these fueling agreements contain a pricing feature indexed to diesel, which the Company determined to be an embedded derivative and is recorded at fair value at the time of execution, with the changes in fair value of the embedded derivative recognized in “Product revenue” in the accompanying condensed consolidated statements of operations.

Commodity swaps and embedded derivatives as of December 31, 2023 consisted of the following (in thousands):

​

​	​	​	​	​	​	​	​	​	​
​	​	Gross Amounts		​	Gross Amounts		​	Net Amount
​		Recognized			Offset			Presented
Assets:		​			​			​
Fueling agreements:	​	​	​	​	​	​	​	​	​
Prepaid expenses and other current assets	​	$	2,593	​	$	—	​	$	2,593
Notes receivable and other long-term assets, net	​	​	2,035	​	​	—	​	​	2,035
Total derivative assets	​	$	4,628	​	$	—	​	$	4,628
Liabilities:		​			​			​
Commodity swaps:	​	​	​	​	​	​	​	​	​
Current portion of derivative liabilities, related party	​	$	1,875	​	$	—	​	$	1,875
Total derivative liabilities	​	$	1,875	​	$	—	​	$	1,875

​

Embedded derivatives as of June 30, 2024 consisted of the following (in thousands):

​

​	​	​	​	​	​	​	​	​	​
​	​	Gross Amounts		​	Gross Amounts		​	Net Amount
​		Recognized			Offset			Presented
Assets:		​			​			​
Fueling agreements:	​	​	​	​	​	​	​	​	​
Prepaid expenses and other current assets	​	$	2,656	​	$	—	​	$	2,656
Notes receivable and other long-term assets, net	​	​	1,780	​	​	—	​	​	1,780
Total derivative assets	​	$	4,436	​	$	—	​	$	4,436

​

As of December 31, 2023, the Company had a total volume on open commodity swap contracts of 1.9 million at a weighted-average price of approximately $3.18 per gallon. As of June 30, 2024, the Company’s commodity swap contracts had expired, and there was no volume on commodity swap contracts.

The following table reflects the weighted-average price of open commodity swap contracts as of December 31, 2023 and June 30, 2024, by year with associated volumes:

​

​	​	​	​	​	​	​	​	​	​	​
​	​	December 31, 2023				​	June 30, 2024
​	​	Volumes	​	Weighted-Average Price per		​	Volumes	​	Weighted-Average Price per
Year		(Diesel Gallons)		Diesel Gallon			(Diesel Gallons)		Diesel Gallon
2024		1,875,000	​	$	3.18	​	—	​	$	—

​

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- References

No definition available.

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- Definition

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480237/815-40-50-5

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480434/815-10-50-5C

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 815
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/815/tableOfContent

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