Fair Value (Tables)

6 Months Ended

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	1.39x to 7.10x Revenue 3.39x 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.