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DERIVATIVE INSTRUMENTS
 12 Months Ended
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE INSTRUMENTS DERIVATIVE INSTRUMENTS
Natural gas derivatives
As of December 31, 2022, the Company held a series of call options (the "Call Options”) for the purchase of natural gas related to customer commitments. The Call Options are for a total of 1.3 million MMBtu (million British thermal units) of natural gas at December 31, 2022, and extend into the second quarter of 2024. The Company purchased the Call Options to manage the risk of increasing natural gas prices above what it can charge its customers. The Company may also enter into other derivative transactions when beneficial. During 2022, the Company also entered into a swap with a counterparty for 75,000 MMBtu whereby the Company exchanged the monthly fixed price of natural gas for the daily price. There were no remaining volumes outstanding under this swap at December 31, 2022. The Company recognizes all of its derivative instruments as either assets or liabilities which are recorded at fair value on its Condensed Consolidated Balance Sheet. The fair value of the Call Options are predominantly determined from broker quotes and are considered a level 2 fair value measurement. The following table presents the location and fair value of the Call Options at December 31, 2022 and 2021 (in thousands):
For the Year Ended December 31,
Location on Consolidated Balance Sheet2022
2021 (2)
Prepaid expenses and other current assets (1), (3)
$347 $— 
Right-of-use assets and other noncurrent assets (1), (3)
225 — 
$572 $— 
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(1)    Amounts are presented on a gross basis.
(2)    The Company did not have any derivative instruments at December 31, 2021.
(3)    The classification between current and noncurrent assets is based upon when the Call Options mature.
The Company has not designated the Call Options as a hedge under U.S. GAAP and all resulting gains and losses from changes in the fair value of its derivative instruments are included within change in unrealized loss on natural gas derivatives within the Company's Condensed Consolidated Statements of Operations. The table below presents the changes in the fair value of the Call Options for the years ended December 31, 2022 as well as the net realized gains and losses for all of its derivatives for the years ended December 31, 2022 and 2021 (in thousands):
For the Year Ended December 31,
Changes in fair value of derivatives2022
2021(1)
Fair value of natural gas derivatives, beginning of period$— $— 
Purchases of natural gas derivatives2,241 — 
Realized gains (losses), net(791)— 
Change in unrealized loss on natural gas derivatives (2)
(878)— 
Fair value of natural gas derivatives, end of period$572 $— 
For the Year Ended December 31,
Realized gain (loss) from derivative instruments2022
2021(1)
Realized gains (losses), net$(791)$— 
Derivative settlement payments received1,235 — 
Derivative settlement payments made(31)— 
Total realized gain (loss) from natural gas derivatives, net (3)
$413 $— 
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(1)    The Company did not have any derivative instruments at December 31, 2021.
(2)    Amounts are presented as their own separate line item within the Company's Consolidated Statement of Operations.
(3)    Amounts are included within cost of revenues on the Company's Consolidated Statement of Operations.