XML 32 R20.htm IDEA: XBRL DOCUMENT
v3.25.2

FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS | 9 Months Ended
--- | ---
Jun. 30, 2025
Fair Value Disclosures [Abstract] |
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS |
NOTE 12 FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS
We have certain assets and liabilities that are required to be measured and disclosed at fair value. Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. We use the following fair value hierarchy established in ASC 820-10 to measure fair value to prioritize the inputs: •Level 1 — Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. •Level 2 — Observable inputs, other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets; quoted prices for similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. •Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Fair Value Measurements The following tables summarize our financial assets and liabilities measured at fair value and indicate the level in the fair value hierarchy in which we classify the fair value measurement as of the dates indicated below:
| June 30, 2025
(in thousands) | Fair Value |  | Level 1 |  | Level 2 |  | Level 3
Assets |  |  |  |  |  |  |
Short-term investments: |  |  |  |  |  |  |
Corporate and municipal debt securities | $ | 21,128 |  |  | $ | — |  |  | $ | 21,128 |  |  | $ | — |
Total | 21,128 |  |  | — |  |  | 21,128 |  |  | — |
Long-term Investments: |  |  |  |  |  |  |
Recurring fair value measurements: |  |  |  |  |  |  |
Equity securities: |  |  |  |  |  |  |
Non-qualified supplemental savings plan | 17,436 |  |  | 17,436 |  |  | — |  |  | — |
Investment in Tamboran | 22,218 |  |  | 22,218 |  |  | — |  |  | — |
Other equity securities | 1,632 |  |  | 1,632 |  |  | — |  |  | — |
Debt securities: |  |  |  |  |  |  |
Investment in Galileo, net | 38,972 |  |  | — |  |  | — |  |  | 38,972 |
Geothermal debt securities, net | 2,000 |  |  | — |  |  | — |  |  | 2,000 |
Other debt securities | 250 |  |  | — |  |  | — |  |  | 250 |
Total | $ | 82,508 |  |  | $ | 41,286 |  |  | $ | — |  |  | $ | 41,222 |
As of June 30, 2025, our short-term debt security investments in held to maturity bonds totaled $0.2 million. These investments are measured at cost, less any impairments. As of June 30, 2025, our equity security investments in geothermal energy and other equity security investments were $14.1 million and $5.8 million, respectively. These investments were measured at cost, less any impairments.
| September 30, 2024
(in thousands) | Fair Value |  | Level 1 |  | Level 2 |  | Level 3
Assets |  |  |  |  |  |  |
Short-term investments: |  |  |  |  |  |  |
Corporate debt securities | $ | 33,813 |  |  | $ | — |  |  | $ | 33,813 |  |  | $ | — |
U.S. government and federal agency securities | 53,490 |  |  | 53,490 |  |  | — |  |  | — |
Investment in ADNOC Drilling | 205,616 |  |  | 205,616 |  |  | — |  |  | — |
Total | 292,919 |  |  | 259,106 |  |  | 33,813 |  |  | — |
Long-term investments: |  |  |  |  |  |  |
Recurring fair value measurements: |  |  |  |  |  |  |
Equity securities: |  |  |  |  |  |  |
Non-qualified supplemental savings plan | 15,633 |  |  | 15,633 |  |  | — |  |  | — |
Investment in Tamboran | 20,958 |  |  | 20,958 |  |  | — |  |  | — |
Debt securities: |  |  |  |  |  |  |
Investment in Galileo, net | 27,044 |  |  | — |  |  | — |  |  | 27,044 |
Geothermal debt securities, net | 2,000 |  |  | — |  |  | — |  |  | 2,000 |
Other debt securities | 4,588 |  |  | 4,338 |  |  | — |  |  | 250 |
Total | $ | 70,223 |  |  | $ | 40,929 |  |  | $ | — |  |  | $ | 29,294 |
As of September 30, 2024, our equity security investments in geothermal energy were $25.8 million, of which $0.1 million was measured at fair value as of September 30, 2024. The remaining $25.7 million is measured at cost, less any impairments. Our other equity security investments totaled $4.3 million and our debt security investments in held to maturity bonds totaled $0.3 million. These investments are measured at cost, less any impairments. Recurring Fair Value Measurements Short-term Investments Short-term investments primarily include securities classified as trading securities. Both realized and unrealized gains and losses on trading securities are included in Other income (expense) in the Unaudited Condensed Consolidated Statements of Operations. These securities are recorded at fair value. Level 1 inputs include U.S. agency issued debt securities with active markets and money market funds. For these items, quoted current market prices are readily available. Level 2 inputs include corporate and municipal bonds measured using broker quotations that utilize observable market inputs. During September 2021, the Company made a $100.0 million cornerstone investment in ADNOC Drilling in advance of its announced initial public offering, representing 159.7 million shares of ADNOC Drilling, equivalent to a one percent ownership stake and subject to a three-year lockup period. ADNOC Drilling’s initial public offering was completed on October 3, 2021, and its shares are listed and traded on the Abu Dhabi Securities Exchange. During September 2024, the three-year lockup period expired and the balance was reclassified to Short-term investments on our Consolidated Balance Sheets. During the nine months ended June 30, 2025, we sold our equity securities of 159.7 million shares in ADNOC Drilling and received net proceeds of approximately $193.3 million. During the nine months ended June 30, 2025, we recognized a loss of $12.4 million on our Unaudited Condensed Consolidated Statements of Operations, related to this investment, of which $8.4 million is associated with the change in fair value of the investment and $4.0 million relates to transaction fee associated with the sale of the securities. During the three and nine months ended June 30, 2024, we recognized a gain of $5.6 million and $3.5 million, respectively, as a result of the change in fair value of the investment. This investment was classified as a Level 1 investment based on the quoted stock price on the Abu Dhabi Securities Exchange, and was measured at fair value with any gains or losses recorded within Gain (loss) on investment securities on our Unaudited Condensed Consolidated Statements of Operations. Long-term Investments Equity Securities Our long-term investments include debt and equity securities and assets held in a Non-Qualified Supplemental Savings Plan ("Savings Plan") and are recorded within Investments on our Unaudited Condensed Consolidated Balance Sheets. Our assets that we hold in the Savings Plan are comprised of mutual funds that are measured using Level 1 inputs. Equity Securities with Fair Value Option In October 2022, we made a $14.1 million equity investment, representing 106.0 million common shares in Tamboran Resources. In December 2023, all shares of Tamboran Resources were transferred to Tamboran Corp. in exchange for depository interests in Tamboran Corp. Depository interests, referred to as CHESS Depository Interests, each representing beneficial interests of 1/200th of a share of Tamboran Corp. common stock, are listed on the Australian Stock Exchange under the ticker symbol "TBN." Tamboran Corp. is focused on developing a natural gas resource in Australia's Beetaloo Sub-basin. On June 4, 2024, the Company entered into a convertible note agreement with Tamboran Corp. This note was utilized to relieve Tamboran's outstanding accounts receivable balance owed to the Company, and therefore no cash was exchanged as part of the transaction. The convertible note agreement provided that the notes converted into shares of common stock of Tamboran Corp. under certain circumstances in connection with an initial public offering in which its stock was listed on the NYSE or NASDAQ Stock Exchange. On June 26, 2024, Tamboran Corp. completed an initial public offering of its common stock on the NYSE and its common stock is listed on the NYSE, under the ticker "TBN". As a result of this offering, the convertible note of $9.4 million was converted into 0.5 million common shares of Tamboran Corp. We believe we have a significant influence, but not control or joint control over the investee, due to several factors, including our ownership percentage, operational involvement and role on the investee's board of directors. As of June 30, 2025, our combined equity ownership was approximately 6.1 percent representing 1.0 million common shares in Tamboran Corp. We consider this investment to have a readily determinable fair value and have elected to account for this investment using the fair value option with any changes in fair value recognized through net income. Under the guidance, Topic 820, Fair Value Measurement, this investment is classified as a Level 1 investment based on the quoted stock price which is publicly available. Our investment is classified as a long-term equity investment within Investments on our Unaudited Condensed Consolidated Balance Sheets and measured at fair value with any gains or losses recognized through net income and recorded within Gain (loss) on investment securities on our Unaudited Condensed Consolidated Statements of Operations. During the three and nine months ended June 30, 2025, we recognized gain (loss) of $(0.8) million and $1.3 million, respectively, as a result of the change in fair value of the investment compared to a gain of $1.9 million and $3.7 million during the three and nine months ended June 30, 2024, respectively. Debt Securities During April 2022, the Company made a $33.0 million cornerstone investment in Galileo Holdco 2 Limited Technologies ("Galileo Holdco 2"), part of the group of companies known as Galileo Technologies (“Galileo”) in the form of notes with an option to convert into common shares of the parent of Galileo Holdco 2. Galileo specializes in liquification, natural gas compression and re-gasification modular systems and technologies to make the production, transportation, and consumption of natural gas, biomethane, and hydrogen more economically viable. The convertible note bears interest at 5.0 percent per annum with a maturity date to the earlier of April 2027 or an exit event (as defined in the agreement as either an initial public offering or a sale of Galileo). During the fiscal year ended September 30, 2023, our convertible note agreement was amended to include any interest which has accrued but not yet compounded or issued as a note. As a result, we include accrued interest in our total investment balance. During the nine months ended June 30, 2025, our convertible note agreement was amended to extend the maturity date to the earlier of December 2027 or an exit event. The convertible note will continue to bear interest through the extended maturity date. We do not intend to sell this investment prior to its maturity date or an exit event. During the nine months ended June 30, 2025, as a result of the change in fair value of the investment due to credit related factors, we reversed our previously recognized allowance for credit losses, which resulted in a unrealized gain of $10.2 million within Gain (loss) on investment securities on our Unaudited Condensed Consolidated Statement of Operations and a unrealized gain of $0.4 million within other comprehensive income (loss), respectively. The following table provides quantitative information (in thousands) about our Level 3 unobservable significant inputs related to our debt security investment with Galileo at the dates included below:
June 30, 2025 |  |  |  |
Fair Value (in thousands) |  | Valuation Technique |  | Unobservable Inputs |  |  |  |
$ | 38,972 |  |  | Black-Scholes-Merton model |  | Discount rate | 17.5 | % |  |  |  |
|  |  |  | Risk-free rate | 4.0 | % |  |  |  |
|  |  |  | Equity volatility | 95.0 | % |  |  |  |
September 30, 2024
Fair Value (in thousands) |  | Valuation Technique |  | Unobservable Inputs
$ | 27,044 |  |  | Black-Scholes-Merton model |  | Discount rate | 18.7 | %
|  |  |  | Risk-free rate | 3.5 | %
|  |  |  | Equity volatility | 66.0 | %
The above significant unobservable inputs are subject to change based on changes in economic and market conditions. The use of significant unobservable inputs creates uncertainty in the measurement of fair value as of the reporting date. Significant increases or decreases in the discount rate, risk-free rate, and equity volatility in isolation would result in a significantly lower or higher fair value measurement. It is not possible for us to predict the effect of future economic or market conditions on our estimated fair values. A majority of our long-term debt securities, including our investment in Galileo, are classified as available-for-sale and are measured using Level 3 unobservable inputs based on the absence of market activity. The following table reconciles changes in the fair value of our Level 3 assets for the periods presented below:
| Three Months Ended June 30, |  | Nine Months Ended June 30,
(in thousands) | 2025 |  | 2024 |  | 2025 |  | 2024
Assets at beginning of period | $ | 41,029 |  |  | $ | 38,551 |  |  | $ | 29,294 |  |  | $ | 37,440 |
Purchases | — |  |  | — |  |  | — |  |  | 250 |
Accrued interest | 473 |  |  | 450 |  |  | 1,383 |  |  | 1,316 |
Total gains (losses): |  |  |  |  |  |  |
Included in earnings | — |  |  | — |  |  | 10,162 |  |  | (5) |
Included in other comprehensive income (loss) | (280) |  |  | — |  |  | 383 |  |  | — |
Assets at end of period | $ | 41,222 |  |  | $ | 39,001 |  |  | $ | 41,222 |  |  | $ | 39,001 |
Nonrecurring Fair Value Measurements We have certain assets that are subject to measurement at fair value on a nonrecurring basis. For these nonfinancial assets, measurement at fair value in periods subsequent to their initial recognition is applicable if they are determined to be impaired. These assets generally include property, plant and equipment, goodwill, intangible assets, and operating lease right-of-use assets. If measured at fair value in the Unaudited Condensed Consolidated Balance Sheets, these would generally be classified within Level 2 or 3 of the fair value hierarchy. Further details on any changes in valuation of these assets is provided in their respective footnotes. Equity Securities We also hold various other equity securities without readily determinable fair values, primarily comprised of geothermal investments. These equity securities are initially measured at cost, less any impairments, and will be marked to fair value once observable changes in identical or similar investments from the same issuer occur. All of our long-term equity securities are measured using Level 3 unobservable inputs based on the absence of market activity. The following table reconciles changes in the balance of our equity securities, without readily determinable fair values, including investments that have been marked to fair value on a nonrecurring basis, for the periods presented below:
| Three Months Ended June 30, |  | Nine Months Ended June 30,
(in millions) | 2025 |  | 2024 |  | 2025 |  | 2024
Assets at beginning of period | $ | 45,519 |  |  | $ | 30,152 |  |  | $ | 30,090 |  |  | $ | 28,232 |
Purchases | 594 |  |  | 1,105 |  |  | 1,528 |  |  | 3,641 |
Disposals 1 | (27,117) |  |  | — |  |  | (27,117) |  |  | (616) |
Transfer in | 320 |  |  | — |  |  | 320 |  |  | — |
Total gains: |  |  |  |  |  |  |
Included in earnings 2 | 624 |  |  | — |  |  | 15,119 |  |  | — |
Assets at end of period | $ | 19,940 |  |  | $ | 31,257 |  |  | $ | 19,940 |  |  | $ | 31,257 |
(1)During the three months ended June 30, 2025, we liquidated one of our geothermal equity investments for $27.1 million. (2)The gains recorded during the three and nine months ended June 30, 2025 were attributable to the change in fair value of various geothermal equity investments as a result of disposals or observable price changes in identical or similar investments during the periods. Other Financial Instruments The carrying amount of cash and cash equivalents and restricted cash approximates fair value due to the short-term nature of these items. The majority of cash equivalents are invested in highly liquid money-market mutual funds invested primarily in direct or indirect obligations of the U.S. Government and in federally insured deposit accounts. The carrying value of accounts receivable, other current and noncurrent assets, accounts payable, accrued liabilities and other liabilities approximated fair value at June 30, 2025 and September 30, 2024. The fair values of the long-term fixed-rate debt is based on broker quotes at June 30, 2025 and September 30, 2024. The unsecured senior notes and unsecured term loan credit agreement are classified within Level 2 of the fair value hierarchy as they are not actively traded in markets. The following information presents the supplemental fair value information for our long-term fixed-rate debt at June 30, 2025 and September 30, 2024:
| Carrying Value at June 30, 2025 |  | Fair Value at June 30, 2025 Using Inputs Considered as:
(in thousands) |  | Level 1 |  | Level 2 |  | Level 3
Unsecured senior notes: |  |  |  |  |  |  |
2027 Notes | $ | 347,424 |  |  | $ | — |  |  | $ | 344,943 |  |  | $ | — |
2029 Notes | 346,421 |  |  | — |  |  | 331,894 |  |  | — |
2031 Notes | 546,186 |  |  | — |  |  | 460,944 |  |  | — |
2034 Notes | 543,057 |  |  | — |  |  | 503,486 |  |  | — |
Unsecured term loan credit agreement: |  |  |  |  |  |  |
2027 Term Loan | 325,829 |  |  | — |  |  | 322,275 |  |  | — |
Secured term loan credit agreements: |  |  |  |  |  |  |
2023 Oman Facility 1 | 36,297 |  |  | — |  |  | — |  |  | 36,297 |
2024 Oman Facility 1 | 39,622 |  |  | — |  |  | — |  |  | 39,622 |
Total long-term debt | $ | 2,184,836 |  |  | $ | — |  |  | $ | 1,963,542 |  |  | $ | 75,919 |
(1)The secured term credit agreements are classified as nonpublic debt, meaning their value was directly negotiated between the involved parties and is not observable in the market. As a result, they are categorized as Level 3. Since this debt is nonpublic, the carrying value and the fair value of the loans are identical.
| Carrying Value at September 30, 2024 |  | Fair Value at September 30, 2024 Using Inputs Considered as:
(in thousands) |  | Level 1 |  | Level 2 |  | Level 3
Unsecured senior notes: |  |  |  |  |  |  |
2027 Notes | $ | 347,093 |  |  | $ | — |  |  | $ | 350,700 |  |  | $ | — |
2029 Notes | 346,297 |  |  | — |  |  | 345,100 |  |  | — |
2031 Notes | 545,738 |  |  | — |  |  | 471,350 |  |  | — |
2034 Notes | 543,054 |  |  | — |  |  | 535,700 |  |  | — |
Total long-term debt | $ | 1,782,182 |  |  | $ | — |  |  | $ | 1,702,850 |  |  | $ | — |

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration