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FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS | 9 Months Ended
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Jun. 30, 2026
Fair Value Disclosures [Abstract] |
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS |
NOTE 10 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 on a recurring basis 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, 2026
(in thousands) | Fair Value |  | Level 1 |  | Level 2 |  | Level 3
Assets |  |  |  |  |  |  |
Short-term investments: |  |  |  |  |  |  |
Money market mutual funds | $ | 5,040 |  |  | $ | 5,040 |  |  | $ | — |  |  | $ | — |
Corporate debt securities | 21,920 |  |  | — |  |  | 21,920 |  |  | — |
Total | 26,960 |  |  | 5,040 |  |  | 21,920 |  |  | — |
Long-term Investments: |  |  |  |  |  |  |
Recurring fair value measurements: |  |  |  |  |  |  |
Equity securities: |  |  |  |  |  |  |
Non-qualified supplemental savings plan | 19,196 |  |  | 19,196 |  |  | — |  |  | — |
Investment in Tamboran | 32,663 |  |  | 32,663 |  |  | — |  |  | — |
Debt securities: |  |  |  |  |  |  |
Geothermal debt securities, net | 2,000 |  |  | — |  |  | — |  |  | 2,000 |
Other debt securities | 250 |  |  | — |  |  | — |  |  | 250 |
Total | $ | 54,109 |  |  | $ | 51,859 |  |  | $ | — |  |  | $ | 2,250 |
As of June 30, 2026, our equity security investments in geothermal energy and other equity security investments were $9.1 million and $9.6 million, respectively. These investments are subject to nonrecurring fair value measurement considerations and are carried at cost, less any impairment. Refer to "Nonrecurring Fair Value Measurements" for additional information regarding fair value measurements associated with these investments.
| September 30, 2025
(in thousands) | Fair Value |  | Level 1 |  | Level 2 |  | Level 3
Assets |  |  |  |  |  |  |
Short-term investments: |  |  |  |  |  |  |
Corporate debt securities | $ | 21,302 |  |  | $ | — |  |  | $ | 21,302 |  |  | $ | — |
Total | 21,302 |  |  | — |  |  | 21,302 |  |  | — |
Long-term investments: |  |  |  |  |  |  |
Recurring fair value measurements: |  |  |  |  |  |  |
Equity securities: |  |  |  |  |  |  |
Non-qualified supplemental savings plan | 17,662 |  |  | 17,662 |  |  | — |  |  | — |
Investment in Tamboran | 25,976 |  |  | 25,976 |  |  | — |  |  | — |
Other equity securities | 1,449 |  |  | 1,449 |  |  | — |  |  | — |
Debt securities: |  |  |  |  |  |  |
Geothermal debt securities, net | 2,000 |  |  | — |  |  | — |  |  | 2,000 |
Other debt securities | 250 |  |  | — |  |  | — |  |  | 250 |
Total | $ | 47,337 |  |  | $ | 45,087 |  |  | $ | — |  |  | $ | 2,250 |
As of September 30, 2025, our short-term security investments in held to maturity bonds totaled $0.2 million. These investments are measured at cost, less any impairments. As of September 30, 2025, our equity security investments in geothermal energy and other equity security investments were $14.1 million and $6.7 million, respectively. These investments are subject to nonrecurring fair value measurement considerations and are carried at cost, less any impairment. Refer to "Nonrecurring Fair Value Measurements" for additional information regarding the fair value measurements associated with these investments. 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 money market mutual funds. For these items, quoted current market prices are readily available. Level 2 inputs include corporate bonds measured using broker quotations that utilize observable market inputs. 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 approximately $12.4 million on our Unaudited Condensed Consolidated Statements of Operations, related to this investment. 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. As of June 30, 2026, we owned approximately 1.0 million shares in Tamboran Corp. whose securities are traded on the NYSE and Australian Stock Exchange under the ticker symbol "TBN", representing an ownership interest of approximately 3.6%. We account for this investment under ASC 321 and measure it at fair value, with changes in fair value recognized in earnings. 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 (loss) 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, 2026, we recognized gain (loss) of $(14.3) million and $6.7 million, respectively, compared to a gain (loss) of $(0.8) million and $1.3 million for the corresponding periods in 2025. 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. During the fiscal year ended September 30, 2025, we recorded a $29.6 million loss on our investment in Galileo, due to an allowance for credit loss on the convertible note, driven by heightened liquidity constraints and changes in governance, which led management to conclude that the fair value of the investment was not recoverable. As a result, the investment was fully reserved as of September 30, 2025. The loss was recognized through net income (loss) and recorded within Gain (loss) on investment securities on our Consolidated Statements of Operations. During the nine months ended June 30, 2026, we released Galileo from this legal obligation, resulting in the full write-off of the investment. 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 thousands) | 2026 |  | 2025 |  | 2026 |  | 2025
Assets at beginning of period | $ | 17,547 |  |  | $ | 45,519 |  |  | $ | 20,861 |  |  | $ | 30,090 |
Purchases | 1,201 |  |  | 594 |  |  | 2,239 |  |  | 1,528 |
Disposals | — |  |  | (27,117) |  |  | — |  |  | (27,117) |
Sales | — |  |  | — |  |  | (124) |  |  | — |
Transfer in | — |  |  | 320 |  |  | — |  |  | 320 |
Total gain (loss): |  |  |  |  |  |  |
Included in earnings | — |  |  | 624 |  |  | (4,228) |  |  | 15,119 |
Assets at end of period | $ | 18,748 |  |  | $ | 19,940 |  |  | $ | 18,748 |  |  | $ | 19,940 |
During the three and nine months ended June 30, 2025, we liquidated one of our geothermal equity investments for $27.1 million. The aggregate gains and (losses) included in earnings during the nine months ended June 30, 2026, and the three and nine months ended June 30, 2025 were attributable to the changes in fair value of various geothermal equity investments. These gains (losses) are included in Gain (loss) on investment securities on our Unaudited Condensed Consolidated Statements of Operations. 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, 2026 and September 30, 2025. The fair values of the long-term fixed-rate debt are based on broker quotes at June 30, 2026 and September 30, 2025. The unsecured senior notes and unsecured term loan agreement are classified within Level 2 of the fair value hierarchy as they are not actively traded in markets. The secured term 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. The following information presents the supplemental fair value information for our long-term fixed-rate debt, net at June 30, 2026 and September 30, 2025:
| Carrying Value at June 30, 2026 |  | Fair Value at June 30, 2026 Using Inputs Considered as:
(in thousands) |  | Level 1 |  | Level 2 |  | Level 3
Unsecured senior notes: |  |  |  |  |  |  |
2027 Notes | $ | 348,446 |  |  | $ | — |  |  | $ | 349,793 |  |  | $ | — |
2029 Notes | 347,158 |  |  | — |  |  | 350,315 |  |  | — |
2031 Notes | 546,787 |  |  | — |  |  | 494,197 |  |  | — |
2034 Notes | 543,629 |  |  | — |  |  | 539,391 |  |  | — |
Secured term loan credit agreements: |  |  |  |  |  |  |
2023 Oman Facility | 32,970 |  |  | — |  |  | — |  |  | 32,970 |
2024 Oman Facility | 36,267 |  |  | — |  |  | — |  |  | 36,267 |
Total long-term debt, net of current portion | $ | 1,855,257 |  |  | $ | — |  |  | $ | 1,733,696 |  |  | $ | 69,237 |
| Carrying Value at September 30, 2025 |  | Fair Value at September 30, 2025 Using Inputs Considered as:
(in thousands) |  | Level 1 |  | Level 2 |  | Level 3
Unsecured senior notes: |  |  |  |  |  |  |
2027 Notes | $ | 347,675 |  |  | $ | — |  |  | $ | 352,261 |  |  | $ | — |
2029 Notes | 346,602 |  |  | — |  |  | 348,688 |  |  | — |
2031 Notes | 546,336 |  |  | — |  |  | 486,343 |  |  | — |
2034 Notes | 543,197 |  |  | — |  |  | 538,417 |  |  | — |
Unsecured term loan credit agreement: |  |  |  |  |  |  |
2027 Term Loan | 199,020 |  |  | — |  |  | 201,292 |  |  | — |
Secured term loan credit agreements: |  |  |  |  |  |  |
2023 Oman Facility | 35,465 |  |  | — |  |  | — |  |  | 35,465 |
2024 Oman Facility | 38,789 |  |  | — |  |  | — |  |  | 38,789 |
Total long-term debt, net of current portion | $ | 2,057,084 |  |  | $ | — |  |  | $ | 1,927,001 |  |  | $ | 74,254 |

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- 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
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