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Fair Value (Tables) | 6 Months Ended
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Jun. 30, 2023
Fair Value Disclosures [Abstract] |
Schedule of Carrying Value and Estimated Fair Value of Financial Instruments | The following table sets forth the carrying value and estimated fair value of the Company’s financial instruments not reported at estimated fair value on the Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022 (dollars in thousands):
|  | June 30, 2023 |  |  | December 31, 2022 |
|  | Carrying Value |  |  | Estimated Fair Value |  |  | Carrying Value |  |  | Estimated Fair Value |
Long-term debt (Level 2) |  | $ | 1,107,000 |  |  | $ | 975,122 |  |  | $ | 1,113,500 |  |  | $ | 966,881 |
Long-term debt (Level 3) |  |  | 1,450,000 |  |  |  | 1,137,437 |  |  |  | 1,200,000 |  |  |  | 881,480 |
Snettisham finance lease obligation (Level 3) |  |  | 44,113 |  |  |  | 40,500 |  |  |  | 45,730 |  |  |  | 41,700 |
Long-term debt to affiliated trusts (Level 3) |  |  | 51,547 |  |  |  | 42,284 |  |  |  | 51,547 |  |  |  | 42,836 |
Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis | The following table discloses by level within the fair value hierarchy the Company’s assets and liabilities measured and reported on the Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022 at fair value on a recurring basis (dollars in thousands):
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Counterparty and Cash Collateral Netting (1) |  |  | Total |
June 30, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Energy commodity derivatives |  | $ | — |  |  | $ | 33,285 |  |  | $ | — |  |  | $ | (33,015 | ) |  | $ | 270 |
Foreign currency exchange derivatives |  |  | — |  |  |  | 16 |  |  |  | — |  |  |  | — |  |  |  | 16 |
Interest rate swap derivatives |  |  | — |  |  |  | 2,883 |  |  |  | — |  |  |  | — |  |  |  | 2,883 |
Equity Investments |  |  | — |  |  |  | — |  |  |  | 48,453 |  |  |  | — |  |  |  | 48,453 |
Deferred compensation assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mutual Funds: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed income securities (3) |  |  | 1,142 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,142 |
Equity securities (3) |  |  | 6,140 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 6,140 |
Total |  | $ | 7,282 |  |  | $ | 36,184 |  |  | $ | 48,453 |  |  | $ | (33,015 | ) |  | $ | 58,904 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Energy commodity derivatives (2) |  | $ | — |  |  | $ | 81,132 |  |  | $ | 11,721 |  |  | $ | (78,224 | ) |  | $ | 14,629 |
Total |  | $ | — |  |  | $ | 81,132 |  |  | $ | 11,721 |  |  | $ | (78,224 | ) |  | $ | 14,629 |
December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Energy commodity derivatives (2) |  | $ | — |  |  | $ | 146,232 |  |  | $ | 288 |  |  | $ | (136,605 | ) |  | $ | 9,915 |
Foreign currency exchange derivatives |  |  | — |  |  |  | 43 |  |  |  | — |  |  |  | — |  |  |  | 43 |
Interest rate swap derivatives |  |  | — |  |  |  | 11,184 |  |  |  | — |  |  |  | — |  |  |  | 11,184 |
Equity Investments |  |  | — |  |  |  | — |  |  |  | 54,284 |  |  |  | — |  |  |  | 54,284 |
Deferred compensation assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mutual Funds: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed income securities (3) |  |  | 1,267 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,267 |
Equity securities (3) |  |  | 6,132 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 6,132 |
Total |  | $ | 7,399 |  |  | $ | 157,459 |  |  | $ | 54,572 |  |  | $ | (136,605 | ) |  | $ | 82,825 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Energy commodity derivatives (2) |  | $ | — |  |  | $ | 258,769 |  |  | $ | 18,022 |  |  | $ | (242,044 | ) |  | $ | 34,747 |
Foreign currency exchange derivatives |  |  | — |  |  |  | 3 |  |  |  | — |  |  |  | — |  |  |  | 3 |
Interest rate swap derivatives |  |  | — |  |  |  | 52 |  |  |  | — |  |  |  | — |  |  |  | 52 |
Total |  | $ | — |  |  | $ | 258,824 |  |  | $ | 18,022 |  |  | $ | (242,044 | ) |  | $ | 34,802 |
(1) The Company is permitted to net derivative assets and derivative liabilities with the same counterparty when a legally enforceable master netting agreement exists. In addition, the Company nets derivative assets and derivative liabilities against any payables and receivables for cash collateral held or placed with these same counterparties. (2) The Level 3 energy commodity derivative balances are associated with natural gas exchange agreements. (3) Included in other property and investments-net and other non-current assets on the Condensed Consolidated Balance Sheets.
Schedule of Quantitative Information | The following table presents the quantitative information which was used to estimate the fair values of the Level 3 assets and liabilities above as of June 30, 2023 (dollars in thousands):
|  | Fair Value (Net) at |  |  | Valuation |  | Unobservable |  | Range and Weighted
|  | June 30, 2023 |  |  | Technique |  | Input |  | Average Price
Natural gas exchange agreement |  | $ | (11,721 | ) |  | Internally derived weighted average cost of gas |  | Forward purchase prices |  | $2.53 - $3.39/mmBTU $2.99 Weighted Average
|  |  |  |  |  |  | Forward sales prices |  | $2.92 - $9.53/mmBTU $6.79 Weighted Average
|  |  |  |  |  |  | Purchase volumes |  | 140,000 - 310,000 mmBTUs
|  |  |  |  |  |  | Sales volumes |  | 75,000 - 310,000 mmBTUs
The following table presents the quantitative information which was used to estimate the fair values of the Level 3 equity investments as of June 30, 2023 (dollars in thousands):
|  | Fair Value at |  |  |  |  |  |  |
|  | June 30, 2023 |  |  | Valuation Technique |  | Unobservable Input |  | Range
Equity investments |  | $ | 48,453 |  |  | Market approach |  | Comparable enterprise values |  | $130,000-$388,600 $246,000 Average
|  |  |  |  |  |  | Time to liquidity event |  | 0 to 2 years
|  |  |  |  |  |  | Probability weighting |  | 75%/25%
|  |  |  |  | Discounted cash flows |  | Revenue market multiples |  | 1.39 x to 7.10 x Revenue 3.39 x Average
|  |  |  |  |  |  | Market exit reduction |  | 50%
|  |  |  |  |  |  | Discount rate |  | 25%
|  |  |  |  |  |  | Annual revenues |  | $14,000 - $265,000
|  |  |  |  |  |  | Terminal date |  | 2026
Schedule of Activity for Natural Gas Exchange Agreement Derivative Assets (Liabilities) Measured At Fair Value Using Significant Unobservable Inputs (Level 3) | The following table presents activity for assets and liabilities measured at fair value using significant unobservable inputs (Level 3) for the three and six months ended June 30 (dollars in thousands):
|  | Natural Gas Exchange Agreement (1) |  |  | Equity Investments |  |  | Total |
Three Months Ended June 30, 2023: |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | (11,062 | ) |  | $ | 51,014 |  |  | $ | 39,952 |
Total gains or (losses) (realized/unrealized): |  |  |  |  |  |  |  |  |
Included in regulatory assets/liabilities |  |  | (1,016 | ) |  |  | — |  |  |  | (1,016 | )
Recognized in net income |  |  | — |  |  |  | (2,561 | ) |  |  | (2,561 | )
Purchases and debt conversions |  |  | — |  |  |  | — |  |  |  | — |
Settlements |  |  | 357 |  |  |  | — |  |  |  | 357 |
Other |  |  | — |  |  |  | — |  |  |  | — |
Ending balance as of June 30, 2023 |  | $ | (11,721 | ) |  | $ | 48,453 |  |  | $ | 36,732 |
Three Months Ended June 30, 2022: |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | (6,197 | ) |  | $ | — |  |  | $ | (6,197 | )
Total gains or (losses) (realized/unrealized): |  |  |  |  |  |  |  |  |
Included in regulatory assets/liabilities |  |  | 5,196 |  |  |  | — |  |  |  | 5,196 |
Settlements |  |  | (1,288 | ) |  |  | — |  |  |  | (1,288 | )
Ending balance as of June 30, 2022 |  | $ | (2,289 | ) |  | $ | — |  |  | $ | (2,289 | )
Six Months Ended June 30, 2023: |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | (17,734 | ) |  | $ | 54,284 |  |  | $ | 36,550 |
Total gains or (losses) (realized/unrealized): |  |  |  |  |  |  |  |  |
Included in regulatory assets/liabilities |  |  | 5,767 |  |  |  | — |  |  |  | 5,767 |
Recognized in net income |  |  | — |  |  |  | (5,198 | ) |  |  | (5,198 | )
Purchases and debt conversions |  |  | — |  |  |  | 2,367 |  |  |  | 2,367 |
Settlements |  |  | 246 |  |  |  | — |  |  |  | 246 |
Other |  |  | — |  |  |  | (3,000 | ) |  |  | (3,000 | )
Ending balance as of June 30, 2023 |  | $ | (11,721 | ) |  | $ | 48,453 |  |  | $ | 36,732 |
Six Months Ended June 30, 2022: |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | (7,771 | ) |  | $ | — |  |  | $ | (7,771 | )
Total gains or (losses) (realized/unrealized): |  |  |  |  |  |  |  |  |
Included in regulatory assets/liabilities |  |  | 7,695 |  |  |  | — |  |  |  | 7,695 |
Settlements |  |  | (2,213 | ) |  |  | — |  |  |  | (2,213 | )
Ending balance as of June 30, 2022 |  | $ | (2,289 | ) |  | $ | — |  |  | $ | (2,289 | )
(1) There were no purchases, issuances or transfers from other categories of any derivatives instruments during the periods presented in the table above.

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- Definition Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -SubTopic 10 -Topic 820 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-3 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
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