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Fair Value (Tables) | 9 Months Ended
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Sep. 30, 2024
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 September 30, 2024 and December 31, 2023 (dollars in thousands):
|  | September 30, 2024 |  |  | December 31, 2023 |
|  | Carrying Value |  |  | Estimated Fair Value |  |  | Carrying Value |  |  | Estimated Fair Value |
Long-term debt (Level 2) |  | $ | 1,100,000 |  |  | $ | 999,103 |  |  | $ | 1,100,000 |  |  | $ | 968,893 |
Long-term debt (Level 3) |  |  | 1,533,700 |  |  |  | 1,268,561 |  |  |  | 1,450,000 |  |  |  | 1,166,512 |
Snettisham finance lease obligation (Level 3) |  |  | 39,945 |  |  |  | 37,500 |  |  |  | 42,495 |  |  |  | 39,600 |
Long-term debt to affiliated trusts (Level 3) |  |  | 51,547 |  |  |  | 46,990 |  |  |  | 51,547 |  |  |  | 46,098 |
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 September 30, 2024 and 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 |
September 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Energy commodity derivatives |  | $ | — |  |  | $ | 21,395 |  |  | $ | — |  |  | $ | (13,023 | ) |  | $ | 8,372 |
Foreign currency exchange derivatives |  |  | — |  |  |  | 7 |  |  |  | — |  |  |  | — |  |  |  | 7 |
Equity Investments |  |  | — |  |  |  | — |  |  |  | 52,819 |  |  |  | — |  |  |  | 52,819 |
Deferred compensation assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mutual Funds: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed income securities (3) |  |  | 1,026 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,026 |
Equity securities (3) |  |  | 7,727 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 7,727 |
Total |  | $ | 8,753 |  |  | $ | 21,402 |  |  | $ | 52,819 |  |  | $ | (13,023 | ) |  | $ | 69,951 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Energy commodity derivatives (2) |  | $ | — |  |  | $ | 65,159 |  |  | $ | 6,977 |  |  | $ | (32,938 | ) |  | $ | 39,198 |
Interest rate swap derivatives |  |  | — |  |  |  | 75 |  |  |  | — |  |  |  | — |  |  |  | 75 |
Total |  | $ | — |  |  | $ | 65,234 |  |  | $ | 6,977 |  |  | $ | (32,938 | ) |  | $ | 39,273 |
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 |  |  | — |  |  |  | — |  |  |  | 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 |
(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 a natural gas exchange agreement. (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 September 30, 2024 (dollars in thousands):
|  | Fair Value (Net) at |  |  | Valuation |  | Unobservable |  | Range and Weighted
|  | September 30, 2024 |  |  | Technique |  | Input |  | Average Price
Natural gas exchange agreement |  | $ | (6,977 | ) |  | Internally derived weighted average cost of gas |  | Forward sales prices |  | $2.57 - $8.08/mmBTU $5.86 Weighted Average
|  |  |  |  |  |  | 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 September 30, 2024 (dollars in thousands):
|  | Fair Value at |  |  |  |  |  |  |
|  | September 30, 2024 |  |  | Valuation Technique |  | Unobservable Input |  | Range
Equity investments |  | $ | 52,819 |  |  | Market approach |  | Comparable enterprise values |  | $130,000-$388,600 $246,000 Average
|  |  |  |  |  |  | Time to liquidity event |  | 1.50 years
|  |  |  |  | Discounted cash flows |  | Revenue market multiples |  | 0.53 x to 4.71 x Revenue 2.21 x Average
|  |  |  |  |  |  | Market multiple exit reduction |  | 50%
|  |  |  |  |  |  | Discount rate |  | 25%
|  |  |  |  |  |  | Annual revenues |  | $5,000 - $138,000
|  |  |  |  |  |  | Terminal date |  | 2029
Schedule of Activity For Energy Commodity Derivative Assets (Liabilities) Measured At Fair Value and Equity Investments 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 nine months ended September 30 (dollars in thousands):
|  | Natural Gas Exchange Agreement (1) |  |  | Equity Investments |  |  | Total |
Three Months Ended September 30, 2024: |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | (7,981 | ) |  | $ | 50,357 |  |  | $ | 42,376 |
Total gains or (losses) (realized/unrealized): |  |  |  |  |  |  |  |  |
Included in regulatory assets/liabilities |  |  | 1,005 |  |  |  | — |  |  |  | 1,005 |
Recognized in net income |  |  | — |  |  |  | 1,478 |  |  |  | 1,478 |
Purchases and debt conversions |  |  | — |  |  |  | 984 |  |  |  | 984 |
Settlements |  |  | (1 | ) |  |  | — |  |  |  | (1 | )
Ending balance as of September 30, 2024 |  | $ | (6,977 | ) |  | $ | 52,819 |  |  | $ | 45,842 |
Three Months Ended September 30, 2023: |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | (11,721 | ) |  | $ | 48,453 |  |  | $ | 36,732 |
Total gains or (losses) (realized/unrealized): |  |  |  |  |  |  |  |  |
Included in regulatory assets/liabilities |  |  | (3,652 | ) |  |  | — |  |  |  | (3,652 | )
Recognized in net income |  |  | — |  |  |  | 2,024 |  |  |  | 2,024 |
Ending balance as of September 30, 2023 |  | $ | (15,373 | ) |  | $ | 50,477 |  |  | $ | 35,104 |
Nine Months Ended September 30, 2024: |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | (8,250 | ) |  | $ | 50,254 |  |  | $ | 42,004 |
Total gains or (losses) (realized/unrealized): |  |  |  |  |  |  |  |  |
Included in regulatory assets/liabilities |  |  | 986 |  |  |  | — |  |  |  | 986 |
Recognized in net income |  |  | — |  |  |  | 636 |  |  |  | 636 |
Purchases and debt conversions |  |  | — |  |  |  | 1,929 |  |  |  | 1,929 |
Settlements |  |  | 287 |  |  |  | — |  |  |  | 287 |
Ending balance as of September 30, 2024 |  | $ | (6,977 | ) |  | $ | 52,819 |  |  | $ | 45,842 |
Nine Months Ended September 30, 2023: |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | (17,734 | ) |  | $ | 54,284 |  |  | $ | 36,550 |
Total gains or (losses) (realized/unrealized): |  |  |  |  |  |  |  |  |
Included in regulatory assets/liabilities |  |  | 2,115 |  |  |  | — |  |  |  | 2,115 |
Recognized in net income |  |  | — |  |  |  | (3,174 | ) |  |  | (3,174 | )
Purchases and debt conversions |  |  | — |  |  |  | 2,367 |  |  |  | 2,367 |
Settlements |  |  | 246 |  |  |  | — |  |  |  | 246 |
Other |  |  | — |  |  |  | (3,000 | ) |  |  | (3,000 | )
Ending balance as of September 30, 2023 |  | $ | (15,373 | ) |  | $ | 50,477 |  |  | $ | 35,104 |
(1) There were no purchases, issuances or transfers from other categories 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://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-3 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + 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/2009/role/commonPracticeRef -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 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -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 + Details
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