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Fair Value (Tables)

12 Months Ended

Dec. 31, 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 Consolidated Balance Sheets as of December 31 (dollars in thousands):

		2023								2022
		Carrying Value				Estimated Fair Value				Carrying Value				Estimated Fair Value
Long-term debt (Level 2)		$	1,100,000			$	968,893			$	1,113,500			$	966,881
Long-term debt (Level 3)			1,450,000				1,166,512				1,200,000				881,480
Snettisham finance lease obligation (Level 3)			42,495				39,600				45,730				41,700
Long-term debt to affiliated trusts (Level 3)			51,547				46,098				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 Consolidated Balance Sheets as of December 31, 2023 at fair value on a recurring basis (dollars in thousands):

		Level 1				Level 2				Level 3				Counterparty and Cash Collateral Netting (1)				Total
December 31, 2023
Assets:
Energy commodity derivatives (2)		$	—			$	30,954			$	—			$	(22,802	)		$	8,152
Foreign currency exchange derivatives			—				2				—				—				2
Interest rate swap derivatives			—				3,667				—				—				3,667
Equity investments (3)			—				—				50,254				—				50,254
Deferred compensation assets:
Mutual Funds:
Fixed income securities (3)			1,117				—				—				—				1,117
Equity securities (3)			6,524				—				—				—				6,524
Total		$	7,641			$	34,623			$	50,254			$	(22,802	)		$	69,716
Liabilities:
Energy commodity derivatives (2)		$	—			$	91,844			$	8,250			$	(65,157	)		$	34,937
Interest rate swap derivatives			—				182				—				—				182
Total		$	—			$	92,026			$	8,250			$	(65,157	)		$	35,119

The following table discloses by level within the fair value hierarchy the Company’s assets and liabilities measured and reported on the Consolidated Balance Sheets as of 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
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 (3)			—				—				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 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)These assets are included in other property and investments-net and other non-current assets on the 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 December 31, 2023 (dollars in thousands):

		Fair Value (Net) at
		December 31, 2023				Valuation Technique		Unobservable Input		Range
Natural gas exchange		$	(8,250	)		Internally derived weighted average cost of gas		Forward purchase prices		$1.64 - $3.07/mmBTU $2.40 Weighted Average
								Forward sales prices		$2.13 - $8.99/mmBTU $5.45 Weighted Average
								Purchase volumes		300,000 - 310,000 mmBTUs
								Sales volumes		75,000 - 310,000 mmBTUs

		Fair Value at
		December 31, 2023				Valuation Technique		Unobservable Input		Range
Equity investments		$	50,254			Market approach		Comparable enterprise values		$130,000-$388,600 $246,000 Average
								Time to liquidity event		1.5 years
						Discounted cash flows		Revenue market multiples		0.45x to 5.69x Revenue 1.89x Average
								Market exit reduction		50%
								Discount rate		25%
								Annual revenues		$15,000-$245,000
								Terminal date		2027

Schedule of Activity For Energy Commodity 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 years ended December 31 (dollars in thousands):

		Natural Gas Exchange Agreement (1)				Equity Investments				Total
Year ended December 31, 2023:
Balance as of January 1, 2023		$	(17,734	)		$	54,284			$	36,550
Total gains or (losses) (realized/unrealized):
Included in regulatory assets			9,238				—				9,238
Recognized in net income			—				(4,323	)			(4,323	)
Purchases and debt conversions			—				3,293				3,293
Settlements			246				—				246
Other			—				(3,000	)			(3,000	)
Ending balance as of December 31, 2023		$	(8,250	)		$	50,254			$	42,004
Year ended December 31, 2022:
Balance as of January 1, 2022		$	(7,771	)		$	—			$	(7,771	)
Transfers in (2)			—				20,902				20,902
Total gains or (losses) (realized/unrealized):
Included in regulatory assets			(4,740	)			—				(4,740	)
Recognized in net income			—				33,382				33,382
Settlements			(5,223	)			—				(5,223	)
Ending balance as of December 31, 2022		$	(17,734	)		$	54,284			$	36,550
Year ended December 31, 2021:
Balance as of January 1, 2021		$	(8,410	)		$	—			$	(8,410	)
Total gains (realized/unrealized):
Included in regulatory assets			4,292				—				4,292
Settlements			(3,653	)			—				(3,653	)
Ending balance as of December 31, 2021		$	(7,771	)		$	—			$	(7,771	)

(1)There were no purchases, issuances or transfers from other categories of derivatives instruments during the periods presented in the table above.

(2)The Company elected to account for certain equity investments at recurring fair value in 2022, as such the transfer in represents the value as of the election. See further discussion within Note 7.

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Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

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Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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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.

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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).

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