Genie Energy Ltd.GNE

Genie Energy Ltd. Commitments Disclosure

10-KFiled May 1, 20262 min read

Note 18 — Commitments and Contingencies

 

Purchase Commitments

 

The Company had purchase commitments of $144.4 million at December 31, 2025, of which $140.7 million was for future purchases of electricity. The purchase commitments outstanding at December 31, 2025 are expected to be paid as follows (in thousands):

 

2026

  121,112 

2027

  20,157 

2028

  3,106 

Thereafter

  — 

Total payments

 $144,375 

 

For the year ended  December 31, 2025, the Company purchased $88.8 million and $10.3 million of electricity and renewable energy credits, respectively, under these purchase commitments. For the year ended December 31, 2024, the Company purchased $39.4 million and $16.8 million of electricity and renewable energy credits, respectively, under these purchase commitments. For the year ended December 31, 2023 the Company purchased $39.0 million and $19.5 million of electricity and renewable energy credits, respectively, under these purchase commitments.

 

Renewable Energy Credits

 

GRE's REPs must obtain a certain percentage or amount of their electricity from renewable energy sources in order to meet the requirements of renewable portfolio standards in the states in which they operate. This requirement may be met by obtaining renewable energy credits that provide evidence that electricity has been generated by a qualifying renewable facility or resource. At December 31, 2025, GRE had commitments to purchase renewable energy credits of $3.7 million.

 

Performance Bonds and Unused Letters of Credit

 

GRE has performance bonds issued through a third party for certain utility companies and for the benefit of various states in order to comply with the states’ financial requirements for REPs. At December 31, 2025, GRE had aggregate performance bonds of $28.4 million outstanding and  $1.0 million of unused letters of credit.  

 

BP Energy Company Preferred Supplier Agreement

 

Certain of GREs REPs are party to an Amended and Restated Preferred Supplier Agreement with BP, which is to be in effect through November 30, 2026. Under the agreement, the REPs purchase electricity and natural gas at market rate plus a fee. The obligations to BP are secured by a first security interest in deposits or receivables from utilities in connection with their purchase of the REP’s customer’s receivables, and in any cash deposits or letters of credit posted in connection with any collateral accounts with BP. The ability to purchase electricity and natural gas under this agreement is subject to satisfaction of certain conditions including the maintenance of certain covenants. At December 31, 2025, the Company was in compliance with such covenants. At December 31, 2025, restricted cash — short-term of  $0.8 million and trade accounts receivable of  $76.1 million were pledged to BP as collateral for the payment of trade accounts payable to BP of  $33.5 million at December 31, 2025.

 

 

Historical Timeline

Fiscal YearFiled
2025May 1, 2026Showing above
2024Mar 14, 2025
2023Mar 14, 2024
2022Mar 15, 2023
2021Mar 16, 2022
2020Mar 16, 2021
2019Mar 16, 2020
2018Mar 19, 2019
2017Mar 16, 2018
2016Mar 16, 2017
2015Mar 15, 2016

About Commitments Disclosures

Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.

Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.

Other Available Disclosures

Income TaxesRevenueFair ValuePP&EGoodwill & IntangiblesLeasesSegmentsDebtStock CompensationNew StandardsAward Timing Disclosure