Fair Value (Tables)

3 Months Ended

Mar. 31, 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 March 31, 2024 and December 31, 2023 (dollars in thousands):

	March 31, 2024				December 31, 2023
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Long-term debt (Level 2)	$	1,100,000	$	943,749	$	1,100,000	$	968,893
Long-term debt (Level 3)		1,450,000		1,129,480		1,450,000		1,166,512
Snettisham finance lease obligation (Level 3)		41,645		38,200		42,495		39,600
Long-term debt to affiliated trusts (Level 3)		51,547		46,068		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 March 31, 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
March 31, 2024
Assets:
Energy commodity derivatives	$	—	$	24,345	$	—	$	(20,434	)	$	3,911
Interest rate swap derivatives		—		295		—		—			295
Equity Investments		—		—		51,829		—			51,829
Deferred compensation assets
Mutual Funds:
Fixed income securities (3)		1,107		—		—		—			1,107
Equity securities (3)		7,226		—		—		—			7,226
Total	$	8,333	$	24,640	$	51,829	$	(20,434	)	$	64,368
Liabilities:
Energy commodity derivatives (2)	$	—	$	51,268	$	7,403	$	(36,621	)	$	22,050
Foreign currency exchange derivatives		—		11		—		—			11
Total	$	—	$	51,279	$	7,403	$	(36,621	)	$	22,061
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 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 March 31, 2024 (dollars in thousands):

	Fair Value (Net) at			Valuation	Unobservable	Range and Weighted
	March 31, 2024			Technique	Input	Average Price
Natural gas exchange agreement	$	(7,403	)	Internally derived weighted average cost of gas	Forward purchase prices	$1.26 - $2.48/mmBTU $1.87 Weighted Average
					Forward sales prices	$2.65 - $9.57/mmBTU $6.96 Weighted Average
					Purchase volumes	300,000 - 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 March 31, 2024 (dollars in thousands):

	Fair Value at
	March 31, 2024		Valuation Technique	Unobservable Input	Range
Equity investments	$	51,829	Market approach	Comparable enterprise values	$130,000-$388,600 $246,000 Average
				Time to liquidity event	1.75 years
			Discounted cash flows	Revenue market multiples	0.28x to 4.83x Revenue 1.86x 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 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 months ended March 31 (dollars in thousands):

	Natural Gas Exchange Agreement (1)			Equity Investments			Total
Three Months Ended March 31, 2024:
Beginning balance	$	(8,250	)	$	50,254		$	42,004
Total gains or (losses) (realized/unrealized):
Included in regulatory assets/liabilities		888			—			888
Recognized in net income		—			630			630
Purchases and debt conversions		—			945			945
Settlements		(41	)		—			(41	)
Ending balance as of March 31, 2024	$	(7,403	)	$	51,829		$	44,426
Three Months Ended March 31, 2023:
Beginning balance	$	(17,734	)	$	54,284		$	36,550
Total gains or (losses) (realized/unrealized):
Included in regulatory assets/liabilities		6,783			—			6,783
Recognized in net income		—			(2,637	)		(2,637	)
Purchases and debt conversions		—			2,367			2,367
Settlements		(111	)		—			(111	)
Other		—			(3,000	)		(3,000	)
Ending balance as of March 31, 2023	$	(11,062	)	$	51,014		$	39,952

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