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Fair Value Measurements | 9 Months Ended
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Sep. 30, 2024
Fair Value Disclosures [Abstract] |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Financial Instruments Investments We retained an interest in CSI Compressco, which was acquired by Kodiak on April 1, 2024, and we received shares of Kodiak in exchange for our common units in CSI Compressco in connection with such acquisition. In December 2021, we invested in a $5.0 million convertible note issued by CarbonFree. During 2023, we invested $0.4 million in convertible notes issued by KMX. During the three months ended September 30, 2024, these convertible notes converted into preferred units and we invested $1.0 million in additional preferred units. We also received common units issued by KMX. In addition, we receive stock of Standard Lithium under the terms of our arrangements as noted in Note 4 - “Investments.” Our investments in Kodiak, Standard Lithium, and, formerly, CSI Compressco, are recorded in investments on our consolidated balance sheets based on the quoted market stock price (Level 1 fair value measurements). The stock component of consideration received from Standard Lithium was initially recorded as unearned income based on the quoted market price at the time the stock is received, then recognized in income over the contract term. Changes in the value of stock are recorded in other (income) expense, net in our consolidated statements of operations. Our investment in preferred units issued by KMX as of September 30, 2024 were recorded based on observable market-based inputs for preferred units issued to several investors during August and September 2024 (Level 2 fair value measurement). Our investment in convertible notes and common units issued by CarbonFree and our investment in common units issued by KMX are recorded in our consolidated financial statements based on an internal valuations with assistance from a third-party valuation specialist (Level 3 fair value measurement). The valuations are impacted by key assumptions, including the assumed probability and timing of potential debt or equity offerings. The convertible note issued by CarbonFree includes an option to convert the note into equity interests issued by CarbonFree. The change in the fair value of the embedded option, as well as the KMX preferred units and common units, are included in other (income) expense, net in our consolidated statements of operations. The change in the fair value of the convertible note issued by CarbonFree, excluding the embedded option, is included in other comprehensive income (loss) in our consolidated statements of comprehensive income. The change in our investments for the three-month and nine-month periods ended September 30, 2024 and 2023 are as follows:
| Three Months Ended September 30, 2024
| Fair Value Measurements Using
| Quoted Prices in Active Markets for Identical Assets or Liabilities |  | Significant Other Observable Inputs |  | Significant Unobservable Inputs |  |
| (Level 1) |  | (Level 2) |  | (Level 3) |  | Total
| (in thousands)
Investment balance at beginning of period | $ | 13,279 |  |  | $ | — |  |  | $ | 7,148 |  |  | $ | 20,427 |
Purchase of investments | — |  |  | 1,000 |  |  | 21 |  |  | 1,021 |
Reclassification between Level 2 and Level 3 fair value | — |  |  | 350 |  |  | (350) |  |  | — |
Unrealized gain on equity securities | 1,072 |  |  | 38 |  |  | 193 |  |  | 1,303 |
Unrealized loss on embedded option | — |  |  | — |  |  | (553) |  |  | (553) |
Unrealized gain on convertible note, excluding embedded option | — |  |  | — |  |  | 556 |  |  | 556 |
Investment balance at end of period | $ | 14,351 |  |  | $ | 1,388 |  |  | $ | 7,015 |  |  | $ | 22,754 |
| Three Months Ended September 30, 2023
| Fair Value Measurements Using
| Quoted Prices in Active Markets for Identical Assets or Liabilities |  | Significant Unobservable Inputs |  |
| (Level 1) |  | (Level 3) |  | Total
| (in thousands)
Investment balance at beginning of period | $ | 10,199 |  |  | $ | 6,519 |  |  | $ | 16,718 |
Purchase of investments | — |  |  | 100 |  |  | 100 |
Unrealized loss on equity securities | (707) |  |  | — |  |  | (707) |
Unrealized gain on embedded option | — |  |  | 148 |  |  | 148 |
Unrealized gain on convertible note, excluding embedded option | — |  |  | 146 |  |  | 146 |
Investment balance at end of period | $ | 9,492 |  |  | $ | 6,913 |  |  | $ | 16,405 |
| Nine Months Ended September 30, 2024
| Fair Value Measurements Using
| Quoted Prices in Active Markets for Identical Assets or Liabilities |  | Significant Other Observable Inputs |  | Significant Unobservable Inputs |  |
| (Level 1) |  | (Level 2) |  | (Level 3) |  | Total
| (in thousands)
Investment balance at beginning of period | $ | 10,154 |  |  | $ | — |  |  | $ | 7,200 |  |  | $ | 17,354 |
Purchase of investments | — |  |  | 1,000 |  |  | 21 |  |  | 1,021 |
Reclassification between Level 2 and Level 3 fair value | — |  |  | 350 |  |  | (350) |  |  | — |
Unrealized gain on equity securities | 4,197 |  |  | 38 |  |  | 1,070 |  |  | 5,305 |
Unrealized loss on embedded option | — |  |  | — |  |  | (1,714) |  |  | (1,714) |
Unrealized gain on convertible note, excluding embedded option | — |  |  | — |  |  | 788 |  |  | 788 |
Investment balance at end of period | $ | 14,351 |  |  | $ | 1,388 |  |  | $ | 7,015 |  |  | $ | 22,754 |
| Nine Months Ended September 30, 2023 |  |
| Fair Value Measurements Using |  |
| Quoted Prices in Active Markets for Identical Assets or Liabilities |  | Significant Unobservable Inputs |  |  |  |
| (Level 1) |  | (Level 3) |  | Total |  |
| (in thousands)
Investment balance at beginning of period | $ | 8,147 |  |  | $ | 6,139 |  |  | $ | 14,286 |  |  |
Purchase of investments | — |  |  | 350 |  |  | 350 |  |  |
Unrealized gain on equity securities | 1,345 |  |  | — |  |  | 1,345 |  |  |
Unrealized loss on embedded option | — |  |  | (50) |  |  | (50) |  |  |
Unrealized gain on convertible note, excluding embedded option | — |  |  | 474 |  |  | 474 |  |  |
Investment balance at end of period | $ | 9,492 |  |  | $ | 6,913 |  |  | $ | 16,405 |  |  |
Recurring fair value measurements by valuation hierarchy as of September 30, 2024 and December 31, 2023 are as follows:
|  |  |  | Fair Value Measurements Using
|  | Total as of |  | Quoted Prices in Active Markets for Identical Assets or Liabilities |  | Significant Other Observable Inputs |  | Significant Unobservable Inputs
Description |  | September 30, 2024 |  | (Level 1) |  | (Level 2) |  | (Level 3)
|  | (in thousands)
Investment in Kodiak |  | $ | 13,063 |  |  | $ | 13,063 |  |  | $ | — |  |  | $ | — |
Investment in CarbonFree |  | 6,805 |  |  | — |  |  | — |  |  | 6,805 |
Investment in Standard Lithium |  | 1,288 |  |  | 1,288 |  |  | — |  |  | — |
Investment in KMX Technologies |  | 1,598 |  |  | — |  |  | 1,388 |  |  | 210 |
Total investments |  | $ | 22,754 |  |  |  |  |  |  |
|  |  |  | Fair Value Measurements Using
|  | Total as of |  | Quoted Prices in Active Markets for Identical Assets or Liabilities |  | Significant Other Observable Inputs |  | Significant Unobservable Inputs
Description |  | December 31, 2023 |  | (Level 1) |  | (Level 2) |  | (Level 3)
|  | (in thousands)
Investment in CSI Compressco |  | $ | 8,538 |  |  | $ | 8,538 |  |  | $ | — |  |  | $ | — |
Investment in CarbonFree |  | 6,850 |  |  | — |  |  | — |  |  | 6,850 |
Investment in Standard Lithium |  | 1,616 |  |  | 1,616 |  |  | — |  |  | — |
Investment in KMX Technologies |  | 350 |  |  | — |  |  | — |  |  | 350 |
Investments |  | $ | 17,354 |  |  |  |  |  |  |
Other The fair values of cash, restricted cash, accounts receivable, accounts payable, accrued liabilities, short-term borrowings and long-term debt approximate their carrying amounts. See Note 5 - “Long-Term Debt and Other Borrowings” for further discussion.

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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 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
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