UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 |
FORM |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbols(s) | Name of exchange on which registered | ||||||
Cumulative Redeemable Perpetual Preferred Stock, par value $0.01 per share |
VIA RENEWABLES, INC. | ||||||||
INDEX TO QUARTERLY REPORT ON FORM 10-Q | ||||||||
For the Quarter Ended March 31, 2022 | ||||||||
Page No. | ||||||||
PART I. FINANCIAL INFORMATION | ||||||||
ITEM 1. FINANCIAL STATEMENTS | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2022 AND DECEMBER 31, 2021 (unaudited) | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2022 AND 2021 (unaudited) | ||||||||
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE THREE MONTHS ENDED MARCH 31, 2022 AND 2021 (unaudited) | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2022 AND 2021 (unaudited) | ||||||||
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) | ||||||||
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | ||||||||
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | ||||||||
ITEM 4. CONTROLS AND PROCEDURES | ||||||||
PART II. OTHER INFORMATION | ||||||||
ITEM 1. LEGAL PROCEEDINGS | ||||||||
ITEM 1A. RISK FACTORS | ||||||||
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS | ||||||||
ITEM 6. EXHIBITS | ||||||||
SIGNATURES | ||||||||
March 31, 2022 | December 31, 2021 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Accounts receivable, net of allowance for doubtful accounts of $ | |||||||||||
Accounts receivable—affiliates | |||||||||||
Inventory | |||||||||||
Fair value of derivative assets, net | |||||||||||
Customer acquisition costs, net | |||||||||||
Customer relationships, net | |||||||||||
Deposits | |||||||||||
Renewable energy credit asset | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Fair value of derivative assets, net | |||||||||||
Customer acquisition costs, net | |||||||||||
Customer relationships, net | |||||||||||
Deferred tax assets | |||||||||||
Goodwill | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities, Series A Preferred Stock and Stockholders' Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accounts payable—affiliates | |||||||||||
Accrued liabilities | |||||||||||
Renewable energy credit liability | |||||||||||
Fair value of derivative liabilities, net | |||||||||||
Other current liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term liabilities: | |||||||||||
Fair value of derivative liabilities, net | |||||||||||
Long-term portion of Senior Credit Facility | |||||||||||
Subordinated debt—affiliates | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 12) | |||||||||||
Series A Preferred Stock, par value $ | |||||||||||
Stockholders' equity: | |||||||||||
Common Stock: | |||||||||||
Class A common stock, par value $ | |||||||||||
Class B common stock, par value $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Retained earnings | |||||||||||
Treasury stock, at cost, | ( | ( | |||||||||
Total stockholders' equity | |||||||||||
Non-controlling interest in Spark HoldCo, LLC | ( | ||||||||||
Total equity | |||||||||||
Total liabilities, Series A Preferred Stock and Stockholders' equity | $ | $ |
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Revenues: | ||||||||||||||
Retail revenues | $ | $ | ||||||||||||
Net asset optimization expense | ( | ( | ||||||||||||
Total Revenues | ||||||||||||||
Operating Expenses: | ||||||||||||||
Retail cost of revenues | ||||||||||||||
General and administrative | ||||||||||||||
Depreciation and amortization | ||||||||||||||
Total Operating Expenses | ||||||||||||||
Operating income (loss) | ( | |||||||||||||
Other (expense)/income: | ||||||||||||||
Interest expense | ( | ( | ||||||||||||
Interest and other income | ||||||||||||||
Total other expenses | ( | ( | ||||||||||||
Income (loss) before income tax expense | ( | |||||||||||||
Income tax expense (benefit) | ( | |||||||||||||
Net income (loss) | $ | $ | ( | |||||||||||
Less: Net income (loss) attributable to non-controlling interests | ( | |||||||||||||
Net income (loss) attributable to Via Renewables, Inc. stockholders | $ | $ | ( | |||||||||||
Less: Dividend on Series A Preferred Stock | ||||||||||||||
Net income (loss) attributable to stockholders of Class A common stock | $ | $ | ( | |||||||||||
Net income (loss) attributable to Via Renewables, Inc. per share of Class A common stock | ||||||||||||||
Basic | $ | $ | ( | |||||||||||
Diluted | $ | $ | ( | |||||||||||
Weighted average shares of Class A common stock outstanding | ||||||||||||||
Basic | ||||||||||||||
Diluted | ||||||||||||||
Three Months Ended March 31, 2022 | ||||||||||||||||||||||||||||||||||||||
Issued Shares of Class A Common Stock | Issued Shares of Class B Common Stock | Treasury Stock | Class A Common Stock | Class B Common Stock | Treasury Stock | Accumulated Other Comprehensive Loss | Additional Paid-in Capital | Retained Earnings (Deficit) | Total Stockholders' Equity | Non-controlling Interest | Total Equity | |||||||||||||||||||||||||||
Balance at December 31, 2021 | ( | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||
Stock based compensation | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Restricted stock unit vesting | — | — | — | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||
Consolidated net income | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Distributions paid to non-controlling unit holders | — | — | — | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||
Dividends paid to Class A common stockholders ($ | — | — | — | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||
Dividends paid to Preferred Stockholders | — | — | — | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||
Changes in ownership interest | — | — | — | — | — | — | — | — | ( | |||||||||||||||||||||||||||||
Balance at March 31, 2022 | ( | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | $ |
Three Months Ended March 31, 2021 | ||||||||||||||||||||||||||||||||||||||
Issued Shares of Class A Common Stock | Issued Shares of Class B Common Stock | Treasury Stock | Class A Common Stock | Class B Common Stock | Treasury Stock | Accumulated Other Comprehensive Loss | Additional Paid-in Capital | Retained Earnings (Deficit) | Total Stockholders' Equity | Non-controlling Interest | Total Equity | |||||||||||||||||||||||||||
Balance at December 31, 2020 | ( | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||
Stock based compensation | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Consolidated net loss | — | — | — | — | — | — | — | — | ( | ( | ( | ( | ||||||||||||||||||||||||||
Distributions paid to non-controlling unit holders | — | — | — | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||
Dividends paid to Class A common stockholders ($ | — | — | — | — | — | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||
Dividends paid to Preferred Stockholders | — | — | — | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||
Changes in ownership interest | — | — | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||
Balance at March 31, 2021 | ( | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | ( | $ |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | $ | ( | ||||||||
Adjustments to reconcile net income to net cash flows provided by operating activities: | |||||||||||
Depreciation and amortization expense | |||||||||||
Deferred income taxes | ( | ||||||||||
Stock based compensation | |||||||||||
Amortization of deferred financing costs | |||||||||||
Bad debt expense | ( | ||||||||||
Gain on derivatives, net | ( | ( | |||||||||
Current period cash settlements on derivatives, net | |||||||||||
Other | |||||||||||
Changes in assets and liabilities: | |||||||||||
Decrease in accounts receivable | |||||||||||
Decrease (increase) in accounts receivable—affiliates | ( | ||||||||||
Decrease in inventory | |||||||||||
Increase in customer acquisition costs | ( | ( | |||||||||
Increase in prepaid and other current assets | ( | ( | |||||||||
Decrease in intangible assets—customer acquisition | |||||||||||
Decrease in other assets | |||||||||||
Decrease in accounts payable and accrued liabilities | ( | ( | |||||||||
(Decrease) increase in accounts payable—affiliates | ( | ||||||||||
(Decrease) increase in other current liabilities | ( | ||||||||||
Decrease in other non-current liabilities | ( | ( | |||||||||
Net cash provided by (used in) operating activities | ( | ||||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property and equipment | ( | ( | |||||||||
Acquisition of Customers | ( | ||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Borrowings on notes payable | |||||||||||
Payments on notes payable | ( | ( | |||||||||
Net borrowings on subordinated debt facility | |||||||||||
Restricted stock vesting | ( | ||||||||||
Payment of dividends to Class A common stockholders | ( | ( | |||||||||
Payment of distributions to non-controlling unitholders | ( | ( | |||||||||
Payment of Preferred Stock dividends | ( | ( | |||||||||
Net cash (used) provided in financing activities | ( | ||||||||||
(Decrease) Increase in Cash, cash equivalents and Restricted cash | ( | ||||||||||
Cash, cash equivalents and Restricted cash—beginning of period | |||||||||||
Cash, cash equivalents and Restricted cash—end of period | $ | $ | |||||||||
Supplemental Disclosure of Cash Flow Information: | |||||||||||
Non-cash items: | |||||||||||
Property and equipment purchase accrual | $ | $ | |||||||||
Cash paid during the period for: | |||||||||||
Interest | $ | $ | |||||||||
Taxes | $ | $ | ( |
Reportable Segments | |||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | ||||||||||||||||||||||||||||||||||
Retail Electricity (a) | Retail Natural Gas | Total Reportable Segments | Retail Electricity | Retail Natural Gas | Total Reportable Segments | ||||||||||||||||||||||||||||||
Primary markets (b) | |||||||||||||||||||||||||||||||||||
New England | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Mid-Atlantic | |||||||||||||||||||||||||||||||||||
Midwest | |||||||||||||||||||||||||||||||||||
Southwest | |||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
Customer type | |||||||||||||||||||||||||||||||||||
Commercial | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||||||||
Unbilled revenue (c) | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
Customer credit risk | |||||||||||||||||||||||||||||||||||
POR | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Non-POR | |||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ |
Balance at December 31, 2021 | $ | ( | ||||||
Current period bad debt provision | ( | |||||||
Write-offs | ||||||||
Recovery of previous write offs | ( | |||||||
Balance at March 31, 2022 | $ | ( |
The Company | Affiliated Owners | |||||||
March 31, 2022 | % | % | ||||||
December 31, 2021 | % | % |
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Net income (loss) allocated to non-controlling interest | $ | $ | ( | |||||
Income tax expense allocated to non-controlling interest | ||||||||
Net income (loss) attributable to non-controlling interest | $ | $ | ( |
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Net income (loss) attributable to Via Renewables, Inc. stockholders | $ | $ | ( | |||||
Less: Dividend on Series A Preferred Stock | ||||||||
Net income (loss) attributable to stockholders of Class A common stock | $ | $ | ( | |||||
Basic weighted average Class A common shares outstanding | ||||||||
Basic income (loss) per share attributable to stockholders | $ | $ | ( | |||||
Net income (loss) attributable to stockholders of Class A common stock | $ | $ | ( | |||||
Effect of conversion of Class B common stock to shares of Class A common stock | ||||||||
Diluted net income (loss) attributable to stockholders of Class A common stock | $ | $ | ( | |||||
Basic weighted average Class A common shares outstanding | ||||||||
Effect of dilutive Class B common stock | ||||||||
Effect of dilutive restricted stock units | ||||||||
Diluted weighted average shares outstanding | ||||||||
Diluted income (loss) per share attributable to stockholders | $ | $ | ( |
March 31, 2022 | December 31, 2021 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | $ | ||||||
Accounts receivable | ||||||||
Other current assets | ||||||||
Total current assets | ||||||||
Non-current assets: | ||||||||
Goodwill | ||||||||
Other assets | ||||||||
Total non-current assets | ||||||||
Total Assets | $ | $ | ||||||
Liabilities | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | $ | ||||||
Other current liabilities | 47,934 | |||||||
Total current liabilities | ||||||||
Long-term liabilities: | ||||||||
Long-term portion of Senior Credit Facility | ||||||||
Subordinated debt — affiliate | ||||||||
Other long-term liabilities | ||||||||
Total long-term liabilities | ||||||||
Total Liabilities | $ | $ |
(in thousands) | ||||||||
Balance at December 31, 2021 | $ | |||||||
Repurchase of Series A Preferred Stock | ||||||||
Accumulated dividends on Series A Preferred Stock | ||||||||
Balance at March 31, 2022 | $ |
Commodity | Notional | March 31, 2022 | December 31, 2021 | ||||||||||||||
Natural Gas | MMBtu | ||||||||||||||||
Electricity | MWh |
Commodity | Notional | March 31, 2022 | December 31, 2021 | ||||||||||||||
Natural Gas | MMBtu | ||||||||||||||||
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Gain on non-trading derivatives, net | $ | $ | ||||||
Gain (loss) on trading derivatives, net | ( | |||||||
Gain on derivatives, net | ||||||||
Current period settlements on non-trading derivatives | $ | ( | $ | ( | ||||
Current period settlements on trading derivatives | ||||||||
Total current period settlements on derivatives | $ | ( | $ | ( |
March 31, 2022 | |||||||||||||||||||||||||||||
Description | Gross Assets | Gross Amounts Offset | Net Assets | Cash Collateral Offset | Net Amount Presented | ||||||||||||||||||||||||
Non-trading commodity derivatives | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||
Trading commodity derivatives | ( | ||||||||||||||||||||||||||||
Total Current Derivative Assets | ( | ( | |||||||||||||||||||||||||||
Non-trading commodity derivatives | ( | ||||||||||||||||||||||||||||
Trading commodity derivatives | |||||||||||||||||||||||||||||
Total Non-current Derivative Assets | ( | ||||||||||||||||||||||||||||
Total Derivative Assets | $ | $ | ( | $ | $ | ( | $ |
Description | Gross Liabilities | Gross Amounts Offset | Net Liabilities | Cash Collateral Offset | Net Amount Presented | ||||||||||||||||||||||||
Non-trading commodity derivatives | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Trading commodity derivatives | ( | ( | ( | ||||||||||||||||||||||||||
Total Current Derivative Liabilities | ( | ( | ( | ||||||||||||||||||||||||||
Non-trading commodity derivatives | ( | ( | ( | ||||||||||||||||||||||||||
Trading commodity derivatives | |||||||||||||||||||||||||||||
Total Non-current Derivative Liabilities | ( | ( | ( | ||||||||||||||||||||||||||
Total Derivative Liabilities | $ | ( | $ | $ | ( | $ | $ | ( |
December 31, 2021 | |||||||||||||||||||||||||||||
Description | Gross Assets | Gross Amounts Offset | Net Assets | Cash Collateral Offset | Net Amount Presented | ||||||||||||||||||||||||
Non-trading commodity derivatives | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||
Trading commodity derivatives | ( | ||||||||||||||||||||||||||||
Total Current Derivative Assets | ( | ||||||||||||||||||||||||||||
Non-trading commodity derivatives | ( | ||||||||||||||||||||||||||||
Trading commodity derivatives | |||||||||||||||||||||||||||||
Total Non-current Derivative Assets | ( | ||||||||||||||||||||||||||||
Total Derivative Assets | $ | $ | ( | $ | $ | $ |
Description | Gross Liabilities | Gross Amounts Offset | Net Liabilities | Cash Collateral Offset | Net Amount Presented | ||||||||||||||||||||||||
Non-trading commodity derivatives | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||
Trading commodity derivatives | ( | ( | ( | ||||||||||||||||||||||||||
Total Current Derivative Liabilities | ( | ( | ( | ||||||||||||||||||||||||||
Non-trading commodity derivatives | ( | ( | ( | ||||||||||||||||||||||||||
Trading commodity derivatives | |||||||||||||||||||||||||||||
Total Non-current Derivative Liabilities | ( | ( | ( | ||||||||||||||||||||||||||
Total Derivative Liabilities | $ | ( | $ | $ | ( | $ | $ | ( |
Estimated useful lives (years) | March 31, 2022 | December 31, 2021 | |||||||||||||||
Information technology | $ | $ | |||||||||||||||
Furniture and fixtures | |||||||||||||||||
Total | |||||||||||||||||
Accumulated depreciation | ( | ( | |||||||||||||||
Property and equipment—net | $ | $ |
March 31, 2022 | December 31, 2021 | ||||||||||
Goodwill | $ | $ | |||||||||
Customer relationships—Acquired | |||||||||||
Cost | $ | $ | |||||||||
Accumulated amortization | ( | ( | |||||||||
Customer relationships—Acquired | $ | $ | |||||||||
Customer relationships—Other | |||||||||||
Cost | $ | $ | |||||||||
Accumulated amortization | ( | ( | |||||||||
Customer relationships—Other, net | $ | $ | |||||||||
Trademarks | |||||||||||
Cost | $ | $ | |||||||||
Accumulated amortization | ( | ( | |||||||||
Trademarks, net | $ | $ |
Goodwill | Customer Relationships— Acquired | Customer Relationships— Other | Trademarks | ||||||||||||||||||||
Balance at December 31, 2021 | $ | $ | $ | $ | |||||||||||||||||||
Additions | |||||||||||||||||||||||
Amortization | ( | ( | ( | ||||||||||||||||||||
Balance at March 31, 2022 | $ | $ | $ | $ |
Year ending December 31, | |||||
2022 (remaining nine months) | $ | ||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
> 5 years | |||||
Total | $ |
March 31, 2022 | December 31, 2021 | |||||||
Long-term debt: | ||||||||
Senior Credit Facility (1) (2) | $ | $ | ||||||
Subordinated Debt | ||||||||
Total long-term debt | ||||||||
Total debt | $ | $ |
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Senior Credit Facility | $ | $ | ||||||
Letters of credit fees and commitment fees | ||||||||
Amortization of deferred financing costs | ||||||||
Other | ||||||||
Interest Expense | $ | $ |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
March 31, 2022 | |||||||||||||||||||||||
Non-trading commodity derivative assets | $ | $ | $ | $ | |||||||||||||||||||
Trading commodity derivative assets | |||||||||||||||||||||||
Total commodity derivative assets | $ | $ | $ | $ | |||||||||||||||||||
Non-trading commodity derivative liabilities | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Trading commodity derivative liabilities | ( | ( | |||||||||||||||||||||
Total commodity derivative liabilities | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||
Non-trading commodity derivative assets | $ | $ | $ | $ | |||||||||||||||||||
Trading commodity derivative assets | |||||||||||||||||||||||
Total commodity derivative assets | $ | $ | $ | $ | |||||||||||||||||||
Non-trading commodity derivative liabilities | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Trading commodity derivative liabilities | ( | ( | |||||||||||||||||||||
Total commodity derivative liabilities | $ | $ | ( | $ | $ | ( | |||||||||||||||||
March 31, 2022 | December 31, 2021 | ||||||||||
Assets | |||||||||||
Accounts Receivable - affiliates | $ | $ | |||||||||
Total Assets - affiliates | $ | $ |
March 31, 2022 | December 31, 2021 | ||||||||||
Liabilities | |||||||||||
Accounts Payable - affiliates | $ | $ | |||||||||
Subordinated Debt - affiliates (1) | |||||||||||
Total Liabilities - affiliates | $ | $ |
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Revenue NAO - affiliates | $ | $ | ||||||
Cost of Revenue NAO - affiliates | ||||||||
Net NAO - affiliates | $ | $ |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Reconciliation of Retail Gross Margin to income before taxes | |||||||||||
Income (loss) before income tax expense | $ | $ | ( | ||||||||
Interest and other income | ( | ( | |||||||||
Interest expense | |||||||||||
Operating income | ( | ||||||||||
Depreciation and amortization | |||||||||||
General and administrative | |||||||||||
Less: | |||||||||||
Net asset optimization expense | ( | ( | |||||||||
Net, gain on non-trading derivative instruments | |||||||||||
Net, Cash settlements on non-trading derivative instruments | ( | ( | |||||||||
Non-recurring event - Winter Storm Uri | ( | ||||||||||
Retail Gross Margin | $ | $ |
Three Months Ended March 31, 2022 | |||||||||||||||||||||||||||||
Retail Electricity (a) | Retail Natural Gas | Corporate and Other | Eliminations | Consolidated | |||||||||||||||||||||||||
Total Revenues | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
Retail cost of revenues | |||||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||
Net asset optimization expense | ( | ( | |||||||||||||||||||||||||||
Net, gain on non-trading derivative instruments | |||||||||||||||||||||||||||||
Current period settlements on non-trading derivatives | ( | ( | ( | ||||||||||||||||||||||||||
Retail Gross Margin | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Total Assets at March 31, 2022 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||
Goodwill at March 31, 2022 | $ | $ | $ | $ | $ |
Three Months Ended March 31, 2021 | |||||||||||||||||||||||||||||
Retail Electricity | Retail Natural Gas | Corporate and Other | Eliminations | Consolidated | |||||||||||||||||||||||||
Total revenues | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
Retail cost of revenues | |||||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||
Net asset optimization expense | ( | ( | |||||||||||||||||||||||||||
Net, gain on non-trading derivative instruments | |||||||||||||||||||||||||||||
Current period settlements on non-trading derivatives | ( | ( | ( | ||||||||||||||||||||||||||
Non-recurring event - Winter Storm Uri | ( | ( | |||||||||||||||||||||||||||
Retail Gross Margin | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Total Assets at December 31, 2021 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||
Goodwill at December 31, 2021 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
RCEs: | |||||||||||||||||
(In thousands) | December 31, 2021 | Additions | Attrition | March 31, 2022 | % Increase (Decrease) | ||||||||||||
Retail Electricity | 298 | 14 | 37 | 275 | (8)% | ||||||||||||
Retail Natural Gas | 110 | 9 | 7 | 112 | 2% | ||||||||||||
Total Retail | 408 | 23 | 44 | 387 | (5)% |
RCEs by Geographic Location: | ||||||||||||||||||||
(In thousands) | Electricity | % of Total | Natural Gas | % of Total | Total | % of Total | ||||||||||||||
New England | 80 | 30% | 13 | 12% | 93 | 24% | ||||||||||||||
Mid-Atlantic | 100 | 36% | 61 | 54% | 161 | 42% | ||||||||||||||
Midwest | 25 | 9% | 21 | 18% | 46 | 12% | ||||||||||||||
Southwest | 70 | 25% | 17 | 16% | 87 | 22% | ||||||||||||||
Total | 275 | 100% | 112 | 100% | 387 | 100% |
Three Months Ended March 31, | |||||||||||
(in thousands) | 2022 | 2021 | |||||||||
Adjusted EBITDA (1) | $ | 10,788 | $ | 32,667 | |||||||
Retail Gross Margin (2) | $ | 28,755 | $ | 50,012 |
Three Months Ended March 31, | |||||||||||
(in thousands) | 2022 | 2021 | |||||||||
Reconciliation of Adjusted EBITDA to net income (loss): | |||||||||||
Net income (loss) | $ | 31,025 | $ | (27,560) | |||||||
Depreciation and amortization | 5,184 | 6,036 | |||||||||
Interest expense | 1,307 | 1,311 | |||||||||
Income tax expense (benefit) | 6,044 | (1,535) | |||||||||
EBITDA | 43,560 | (21,748) | |||||||||
Less: | |||||||||||
Net, gain on derivative instruments | 45,063 | 7,024 | |||||||||
Net cash settlements on derivative instruments | (13,136) | (1,185) | |||||||||
Customer acquisition costs | 1,196 | 213 | |||||||||
Plus: | |||||||||||
Non-cash compensation expense | 351 | 467 | |||||||||
Non-recurring event - Winter Storm Uri | — | 60,000 | |||||||||
Adjusted EBITDA | $ | 10,788 | $ | 32,667 |
Three Months Ended March 31, | |||||||||||
(in thousands) | 2022 | 2021 | |||||||||
Reconciliation of Adjusted EBITDA to net cash provided by (used in) operating activities: | |||||||||||
Net cash provided by (used in) operating activities | $ | 4,583 | $ | (23,632) | |||||||
Amortization of deferred financing costs | (245) | (259) | |||||||||
Bad debt expense | (1,024) | 247 | |||||||||
Interest expense | 1,307 | 1,311 | |||||||||
Income tax expense (benefit) | 6,044 | (1,535) | |||||||||
Non-recurring event - Winter Storm Uri | — | 60,000 | |||||||||
Changes in operating working capital | |||||||||||
Accounts receivable, prepaids, current assets | 555 | (11,703) | |||||||||
Inventory | (1,874) | (1,365) | |||||||||
Accounts payable and accrued liabilities | 5,577 | 4,798 | |||||||||
Other | (4,135) | 4,805 | |||||||||
Adjusted EBITDA | $ | 10,788 | $ | 32,667 | |||||||
Cash Flow Data: | |||||||||||
Net cash provided by (used in) operating activities | $ | 4,583 | $ | (23,632) | |||||||
Net cash used in investing activities | $ | (3,598) | $ | (520) | |||||||
Net cash (used in) provided by financing activities | $ | (22,525) | $ | 33,959 |
Three Months Ended March 31, | |||||||||||
(in thousands) | 2022 | 2021 | |||||||||
Reconciliation of Retail Gross Margin to Operating income (loss): | |||||||||||
Operating income (loss) | $ | 38,328 | $ | (27,870) | |||||||
Plus: | |||||||||||
Depreciation and amortization | 5,184 | 6,036 | |||||||||
General and administrative expense | 14,935 | 12,671 | |||||||||
Less: | |||||||||||
Net asset optimization expense | (904) | (140) | |||||||||
Gain on non-trading derivative instruments | 43,916 | 7,054 | |||||||||
Cash settlements on non-trading derivative instruments | (13,320) | (1,189) | |||||||||
Non-recurring event - Winter Storm Uri | — | (64,900) | |||||||||
Retail Gross Margin | $ | 28,755 | $ | 50,012 | |||||||
Retail Gross Margin - Retail Electricity Segment (1) | $ | 17,186 | $ | 30,614 | |||||||
Retail Gross Margin - Retail Natural Gas Segment | $ | 11,569 | $ | 19,398 | |||||||
(In Thousands) | Three Months Ended March 31, | ||||||||||
2022 | 2021 | ||||||||||
Revenues: | |||||||||||
Retail revenues | $ | 128,058 | $ | 113,145 | |||||||
Net asset optimization expense | (904) | (140) | |||||||||
Total Revenues | 127,154 | 113,005 | |||||||||
Operating Expenses: | |||||||||||
Retail cost of revenues | 122,168 | ||||||||||
General and administrative expense | 12,671 | ||||||||||
Depreciation and amortization | 5,184 | 6,036 | |||||||||
Total Operating Expenses | 88,826 | 140,875 | |||||||||
Operating income (loss) | 38,328 | (27,870) | |||||||||
Other (expense)/income: | |||||||||||
Interest expense | (1,307) | (1,311) | |||||||||
Interest and other income | 48 | 86 | |||||||||
Total other expense | (1,259) | (1,225) | |||||||||
Income (loss) before income tax expense | 37,069 | (29,095) | |||||||||
Income tax expense (benefit) | 6,044 | (1,535) | |||||||||
Net income (loss) | $ | 31,025 | $ | (27,560) | |||||||
Other Performance Metrics: | |||||||||||
Adjusted EBITDA (1) (2) | $ | 10,788 | $ | 32,667 | |||||||
Retail Gross Margin (1) (3) | $ | 28,755 | $ | 50,012 | |||||||
Customer Acquisition Costs | $ | 1,196 | $ | 213 | |||||||
Average Monthly RCE Attrition | 3.7 | % | 4.2 | % | |||||||
Change in electricity volumes sold | $ | 7.9 | |||
Change in natural gas volumes sold | 7.4 | ||||
Change in electricity unit revenue per MWh | 2.3 | ||||
Change in electricity unit revenue per MMBtu - Winter Storm Uri | (0.9) | ||||
Change in natural gas unit revenue per MMBtu | (1.8) | ||||
Change in net asset optimization revenue | (0.7) | ||||
Change in total revenues | $ | 14.2 |
Change in electricity volumes sold | $ | 4.8 | |||
Change in natural gas volumes sold | 3.2 | ||||
Change in electricity unit cost per MWh | 19.0 | ||||
Change in electricity unit cost per MWh - Winter Storm Uri | (65.8) | ||||
Change in natural gas unit cost per MMBtu | 10.3 | ||||
Change in value of retail derivative portfolio | (25.0) | ||||
Change in retail cost of revenues | $ | (53.5) |
(in thousands, except volume and per unit operating data) | Three Months Ended March 31, | ||||||||||
2022 | 2021 | ||||||||||
Retail Electricity Segment | |||||||||||
Total Revenues | $ | 88,041 | $ | 78,755 | |||||||
Retail Cost of Revenues | 46,160 | 107,524 | |||||||||
Less: Net gain on non-trading derivatives, net of cash settlements | 24,695 | 5,517 | |||||||||
Non-recurring event - Winter Storm Uri | — | (64,900) | |||||||||
Retail Gross Margin (1) — Electricity | $ | 17,186 | $ | 30,614 | |||||||
Volumes — Electricity (MWhs) (3) | 685,152 | 622,128 | |||||||||
Retail Gross Margin (2) (4) — Electricity per MWh | $ | 25.08 | $ | 49.21 | |||||||
Retail Natural Gas Segment | |||||||||||
Total Revenues | $ | 40,017 | $ | 34,390 | |||||||
Retail Cost of Revenues | 22,547 | 14,644 | |||||||||
Less: Net gain on non-trading derivatives, net of cash settlements | 5,901 | 348 | |||||||||
Retail Gross Margin (1) — Gas | $ | 11,569 | $ | 19,398 | |||||||
Volumes — Gas (MMBtus) | 4,657,118 | 3,829,474 | |||||||||
Retail Gross Margin (2) — Gas per MMBtu | $ | 2.48 | $ | 5.07 |
Change in volumes sold | $ | 3.3 | |||
Change in unit margin per MWh | (16.7) | ||||
Change in retail electricity segment retail gross margin | $ | (13.4) |
Change in volumes sold | $ | 4.1 | |||
Change in unit margin per MMBtu | (11.9) | ||||
Change in retail natural gas segment retail gross margin | $ | (7.8) |
($ in thousands) | March 31, 2022 | ||||
Cash and cash equivalents | $ | 51,363 | |||
Senior Credit Facility Availability (1) | 34,623 | ||||
Subordinated Debt Facility Availability (2) | 10,000 | ||||
Total Liquidity | $ | 95,986 |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Net cash provided by (used in) operating activities | $ | 4,583 | $ | (23,632) | |||||||
Net cash used in investing activities | $ | (3,598) | $ | (520) | |||||||
Net cash (used in) provided by financing activities | $ | (22,525) | $ | 33,959 |
Item 6. Exhibits | |||||||||||||||||||||||||||||
INDEX TO EXHIBITS | |||||||||||||||||
Incorporated by Reference | |||||||||||||||||
Exhibit | Exhibit Description | Form | Exhibit Number | Filing Date | SEC File No. | ||||||||||||
2.1# | 10-Q | 2.1 | 5/5/2016 | 001-36559 | |||||||||||||
2.2# | 10-Q | 2.2 | 5/5/2016 | 001-36559 | |||||||||||||
2.3# | 8-K | 2.1 | 8/1/2016 | 001-36559 | |||||||||||||
2.4# | 10-Q | 2.4 | 5/8/2017 | 001-36559 | |||||||||||||
2.5 | 8-K | 2.1 | 7/6/2017 | 001-36559 | |||||||||||||
2.6# | 8-K | 2.1 | 1/16/2018 | 001-36559 | |||||||||||||
2.7# | 10-K | 2.7 | 3/9/2018 | 001-36559 | |||||||||||||
2.8# | 8-K | 2.1 | 10/25/2018 | 001-36559 | |||||||||||||
2.9 | 10-Q | 2.9 | 8/5/2020 | 001-36559 | |||||||||||||
3.1 | 10-Q | 3.1 | 11/4/2021 | 001-36559 | |||||||||||||
3.2 | 8-K | 3.1 | 8/9/2021 | 001-36559 | |||||||||||||
3.3 | 8-A | 5 | 3/14/2017 | 001-36559 | |||||||||||||
4.2 | S-1 | 4.1 | 6/30/2014 | 333-196375 | |||||||||||||
31.1* | |||||||||||||||||
31.2* | |||||||||||||||||
32** | |||||||||||||||||
101.INS* | XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL | ||||||||||||||||
101.SCH* | Inline XBRL Taxonomy Extension Schema Document. | ||||||||||||||||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | ||||||||||||||||
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document. | ||||||||||||||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | ||||||||||||||||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document. | ||||||||||||||||
104* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101.INS) |
Via Renewables, Inc. | |||||||||||||||||
May 5, 2022 | /s/ Mike Barajas | ||||||||||||||||
Mike Barajas | |||||||||||||||||
Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) |
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) shares in Thousands, $ in Thousands |
Total |
Total Stockholders' Equity |
Treasury Stock |
Accumulated Other Comprehensive Loss |
Additional Paid-in Capital |
Retained Earnings (Deficit) |
Non-controlling Interest |
Common Class A
Common Stock
|
Common Class B
Common Stock
|
---|---|---|---|---|---|---|---|---|---|
Balance at beginning of period (in shares) at Dec. 31, 2020 | 144 | 14,772 | 20,800 | ||||||
Balance at beginning of period at Dec. 31, 2020 | $ 88,461 | $ 64,854 | $ (2,406) | $ (40) | $ 55,222 | $ 11,721 | $ 23,607 | $ 148 | $ 209 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock based compensation | 377 | 377 | 377 | ||||||
Consolidated net income | (27,560) | (7,631) | (7,631) | (19,929) | |||||
Distributions paid to non-controlling unit holders | (6,439) | (6,439) | |||||||
Dividends paid | (2,651) | (2,651) | (2,651) | ||||||
Dividends paid to Preferred Stockholders | (1,951) | (1,951) | (1,951) | ||||||
Changes in ownership interest | 0 | (44) | (44) | 44 | |||||
Balance at end of period (in shares) at Mar. 31, 2021 | 144 | 14,772 | 20,800 | ||||||
Balance at end of period at Mar. 31, 2021 | 50,237 | 52,954 | $ (2,406) | (40) | 52,904 | 2,139 | (2,717) | $ 148 | $ 209 |
Balance at beginning of period (in shares) at Dec. 31, 2021 | 144 | 15,791 | 20,000 | ||||||
Balance at beginning of period at Dec. 31, 2021 | 50,351 | 53,352 | $ (2,406) | (40) | 54,663 | 776 | (3,001) | $ 158 | $ 201 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock based compensation | 345 | 345 | 345 | ||||||
Restricted stock unit vesting (in shares) | 13 | ||||||||
Restricted stock unit vesting | (58) | (58) | (58) | ||||||
Consolidated net income | 31,025 | 12,973 | 12,973 | 18,052 | |||||
Distributions paid to non-controlling unit holders | (3,678) | (3,678) | |||||||
Dividends paid | (2,838) | (2,838) | (2,838) | ||||||
Dividends paid to Preferred Stockholders | (1,951) | (1,951) | (1,951) | ||||||
Changes in ownership interest | 0 | 259 | 259 | (259) | |||||
Balance at end of period (in shares) at Mar. 31, 2022 | 144 | 15,804 | 20,000 | ||||||
Balance at end of period at Mar. 31, 2022 | $ 73,196 | $ 62,082 | $ (2,406) | $ (40) | $ 55,209 | $ 8,960 | $ 11,114 | $ 158 | $ 201 |
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Parenthetical) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Common Class A | ||
Dividends paid (in dollars per share) | $ 0.18125 | $ 0.18125 |
Formation and Organization |
3 Months Ended |
---|---|
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Formation and Organization | 1. Formation and Organization Organization We are an independent retail energy services company that provides residential and commercial customers in competitive markets across the United States with an alternative choice for natural gas and electricity. The Company is a holding company whose primary asset consists of units in Spark HoldCo, LLC (“Spark HoldCo”). The Company is the sole managing member of Spark HoldCo, is responsible for all operational, management and administrative decisions relating to Spark HoldCo’s business and consolidates the financial results of Spark HoldCo and its subsidiaries. Spark HoldCo is the direct and indirect owner of the subsidiaries through which we operate our retail energy services. We conduct our retail energy services business through several brands across our service areas, including Electricity Maine, Electricity N.H., Major Energy, Provider Power Massachusetts, Spark Energy, and Verde Energy. Via Energy Solutions (“VES”) is a wholly owned subsidiary of the Company that offers broker services for retail energy customers.
|
Basis of Presentation and Summary of Significant Accounting Policies |
3 Months Ended |
---|---|
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | 2. Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The accompanying interim unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) as it applies to interim financial statements. This information should be read along with our consolidated financial statements and notes contained in our annual report on Form 10-K for the year ended December 31, 2021 (the “2021 Form 10-K”). Our unaudited condensed consolidated financial statements are presented on a consolidated basis and include all wholly-owned and controlled subsidiaries. We account for investments over which we have significant influence but not a controlling financial interest using the equity method of accounting. All significant intercompany transactions and balances have been eliminated in the unaudited condensed consolidated financial statements. In the opinion of the Company's management, the accompanying condensed consolidated financial statements reflect all adjustments that are necessary to fairly present the financial position, the results of operations, the changes in equity and the cash flows of the Company for the respective periods. Such adjustments are of a normal recurring nature, unless otherwise disclosed. Use of Estimates and Assumptions The preparation of our condensed consolidated financial statements requires estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim financial statements and the reported amounts of revenues and expenses during the period. Actual results could materially differ from those estimates. Relationship with our Founder, Majority Shareholder, and Chief Executive Officer W. Keith Maxwell, III (our "Founder") is the Chief Executive Officer, a director and the owner of a majority of the voting power of our common stock through his ownership of NuDevco Retail, LLC ("NuDevco Retail") and Retailco, LLC ("Retailco"). Retailco is a wholly owned subsidiary of TxEx Energy Investments, LLC ("TxEx"), which is wholly owned by Mr. Maxwell. NuDevco Retail is a wholly owned subsidiary of NuDevco Retail Holdings LLC ("NuDevco Retail Holdings"), which is a wholly owned subsidiary of Electric HoldCo, LLC, which is also a wholly owned subsidiary of TxEx. New Accounting Standards Recently Adopted There have been no changes to our significant accounting policies as disclosed in our 2021 Form 10-K, except as follows: In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2020-04, Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04"). The amendments in ASU 2020-04 provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform ("ASU 2021-01"), which clarifies the scope and application of certain optional expedients and exceptions regarding the original guidance. The amendments in these ASUs were effective upon issuance and can be applied prospectively through December 31, 2022. The Company's Senior Credit Facility and Series A Preferred Stock Certificate of Designations make reference to a LIBOR rate. The Senior Credit Facility outlines the specific procedures that will be undertaken once an appropriate alternative benchmark is identified. We adopted ASU 2020-04 effective January 1, 2022 and the adoption did not have a material impact on our consolidated financial statements. Standards Being Evaluated/Standards Not Yet Adopted The Company considers the applicability and impact of all ASUs. New ASUs were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial statements.
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Revenues |
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Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | 3. Revenues Our revenues are derived primarily from the sale of natural gas and electricity to customers, including affiliates. Revenue is measured based upon the quantity of gas or power delivered at prices contained or referenced in the customer's contract, and excludes any sales incentives (e.g. rebates) and amounts collected on behalf of third parties (e.g. sales tax). Our revenues also include asset optimization activities. Asset optimization activities consist primarily of purchases and sales of gas that meet the definition of trading activities per FASB ASC Topic 815, Derivatives and Hedging. They are therefore excluded from the scope of FASB ASC Topic 606, Revenue from Contracts with Customers. Revenues for electricity, natural gas, and related services are recognized as the Company transfers the promised goods and services to the customer. Electricity and natural gas products may be sold as fixed-price or variable-price products. The typical length of a contract to provide electricity and/or natural gas is twelve months. Customers are billed and generally pay at least monthly, based on usage. Electricity and natural gas sales that have been delivered but not billed by period end are estimated and recorded as accrued unbilled revenues based on estimates of customer usage since the date of the last meter read provided by the utility. Volume estimates are based on forecasted volumes and estimated residential and commercial customer usage. Unbilled revenues are calculated by multiplying these volume estimates by the applicable rate by customer class (residential or commercial). Estimated amounts are adjusted when actual usage is known and billed. The following table discloses revenue by primary geographical market, customer type, and customer credit risk profile (in thousands). The table also includes a reconciliation of the disaggregated revenue to revenue by reportable segment (in thousands).
(a) Retail Electricity includes Services (b) The primary markets include the following states: •New England - Connecticut, Maine, Massachusetts, New Hampshire; •Mid-Atlantic - Delaware, Maryland (including the District of Colombia), New Jersey, New York and Pennsylvania; •Midwest - Illinois, Indiana, Michigan and Ohio; and •Southwest - Arizona, California, Colorado, Florida, Nevada, and Texas. (c) Unbilled revenue is recorded in total until it is actualized, at which time it is categorized between commercial and residential customers. We record gross receipts taxes on a gross basis in retail revenues and retail cost of revenues. During the three months ended March 31, 2022 and 2021, our retail revenues included gross receipts taxes of $0.3 million and $0.3 million, respectively, and our retail cost of revenues included gross receipts taxes of $1.4 million and $1.2 million, respectively. Accounts receivables and Allowance for Credit Losses The Company conducts business in many utility service markets where the local regulated utility purchases our receivables, and then becomes responsible for billing the customer and collecting payment from the customer (“POR programs”). These POR programs result in substantially all of the Company’s credit risk being linked to the applicable utility, which generally has an investment-grade rating, and not to the end-use customer. The Company monitors the financial condition of each utility and currently believes its receivables are collectible. In markets that do not offer POR programs or when the Company chooses to directly bill its customers, certain receivables are billed and collected by the Company. The Company bears the credit risk on these accounts and records an appropriate allowance for doubtful accounts to reflect any losses due to non-payment by customers. The Company’s customers are individually insignificant and geographically dispersed in these markets. The Company writes off customer balances when it believes that amounts are no longer collectible and when it has exhausted all means to collect these receivables. For trade accounts receivables, the Company accrues an allowance for doubtful accounts by business segment by pooling customer accounts receivables based on similar risk characteristics, such as customer type, geography, aging analysis, payment terms, and related macro-economic factors. Expected credit loss exposure is evaluated for each of our accounts receivables pools. Expected credits losses are established using a model that considers historical collections experience, current information, and reasonable and supportable forecasts. The Company writes off accounts receivable balances against the allowance for doubtful accounts when the accounts receivable is deemed to be uncollectible. A rollforward of our allowance for credit losses for the three months ended March 31, 2022 are presented in the table below (in thousands):
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | 4. Equity Non-controlling Interest We hold an economic interest and are the sole managing member in Spark HoldCo, with affiliates of our Founder holding the remaining economic interests in Spark HoldCo. As a result, we consolidate the financial position and results of operations of Spark HoldCo, and reflect the economic interests owned by these affiliates as a non-controlling interest. The Company and affiliates owned the following economic interests in Spark HoldCo at March 31, 2022 and December 31, 2021, respectively.
The following table summarizes the portion of net income and income tax expense attributable to non-controlling interest (in thousands):
Class A Common Stock and Class B Common Stock Holders of the Company's Class A common stock and Class B common stock vote together as a single class on all matters presented to our stockholders for their vote or approval, except as otherwise required by applicable law or by our certificate of incorporation. Conversion of Class B Common Stock to Class A Common Stock In July 2021, holders of Class B common stock exchanged 800,000 of their Spark HoldCo units (together with a corresponding number of shares of Class B common stock) for shares of Class A common stock at an exchange ratio of one share of Class A common stock for each Spark HoldCo unit (and corresponding share of Class B common stock) exchanged. Dividends on Class A Common Stock Dividends declared for the Company's Class A common stock are reported as a reduction of retained earnings, or a reduction of additional paid in capital to the extent retained earnings are exhausted. During the three months ended March 31, 2022, we paid $2.8 million in dividends to the holders of the Company's Class A common stock. This dividend represented a quarterly rate of $0.18125 per share on each share of Class A common stock. In order to pay our stated dividends to holders of our Class A common stock, our subsidiary, Spark HoldCo is required to make corresponding distributions to holders of its units, including those holders that own our Class B common stock (our non-controlling interest holder). As a result, during the three months ended March 31, 2022, Spark HoldCo made corresponding distributions of $3.6 million to our non-controlling interest holders. Earnings Per Share Basic earnings per share (“EPS”) is computed by dividing net income attributable to stockholders (the numerator) by the weighted-average number of Class A common shares outstanding for the period (the denominator). Class B common shares are not included in the calculation of basic earnings per share because they are not participating securities and have no economic interests. Diluted earnings per share is similarly calculated except that the denominator is increased by potentially dilutive securities. The following table presents the computation of basic and diluted income per share for the three months ended March 31, 2022 and 2021 (in thousands, except per share data):
The computation of diluted earnings per share for the three months ended March 31, 2022 and 2021, respectively, excludes 20.0 million and 20.8 million shares of Class B common stock because the effect of their conversion was antidilutive. The Company's outstanding shares of Series A Preferred Stock were not included in the calculation of diluted earnings per share because they contain only contingent redemption provisions that have not occurred. Variable Interest Entity Spark HoldCo is a variable interest entity due to its lack of rights to participate in significant financial and operating decisions and its inability to dissolve or otherwise remove its management. Spark HoldCo owns all of the outstanding membership interests in each of our operating subsidiaries except VES. We are the sole managing member of Spark HoldCo, manage Spark HoldCo's operating subsidiaries through this managing membership interest, and are considered the primary beneficiary of Spark HoldCo. The assets of Spark HoldCo cannot be used to settle our obligations except through distributions to us, and the liabilities of Spark HoldCo cannot be settled by us except through contributions to Spark HoldCo. The following table includes the carrying amounts and classification of the assets and liabilities of Spark HoldCo that are included in our condensed consolidated balance sheet as of March 31, 2022 and December 31, 2021 (in thousands):
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Preferred Stock | 5. Preferred Stock Holders of the Series A Preferred Stock have no voting rights, except in specific circumstances of delisting or in the case the dividends are in arrears as specified in the Series A Preferred Stock Certificate of Designations. The Series A Preferred Stock accrued dividends at an annual percentage rate of 8.75% through April 14, 2022. The floating rate period for the Series A Preferred Stock began on April 15, 2022. The dividend on the Series A Preferred Stock will accrue at an annual rate equal to the sum of (a) Three-Month LIBOR (if it then exists), or an alternative reference rate as of the applicable determination date and (b) 6.578%, based on the $25.00 liquidation preference per share of the Series A Preferred Stock. The liquidation preference provisions of the Series A Preferred Stock are considered contingent redemption provisions because there are rights granted to the holders of the Series A Preferred Stock that are not solely within our control upon a change in control of the Company. Accordingly, the Series A Preferred Stock is presented between liabilities and the equity sections in the accompanying condensed consolidated balance sheets.We have the option to redeem our Series A Preferred Stock on or after April 15, 2022. During the three months ended March 31, 2022, we paid $1.9 million in dividends to holders of the Series A Preferred Stock. As of March 31, 2022, we had accrued $2.0 million related to dividends to holders of the Series A Preferred Stock. This dividend was paid on April 15, 2022. A summary of our preferred equity balance for the three months ended March 31, 2022 is as follows:
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | 6. Derivative Instruments We are exposed to the impact of market fluctuations in the price of electricity and natural gas, basis differences in the price of natural gas, storage charges, renewable energy credits ("RECs"), and capacity charges from independent system operators. We use derivative instruments in an effort to manage our cash flow exposure to these risks. These instruments are not designated as hedges for accounting purposes, and, accordingly, changes in the market value of these derivative instruments are recorded in the cost of revenues. As part of our strategy to optimize pricing in our natural gas related activities, we also manage a portfolio of commodity derivative instruments held for trading purposes. Our commodity trading activities are subject to limits within our Risk Management Policy. For these derivative instruments, changes in the fair value are recognized currently in earnings in net asset optimization revenues. Derivative assets and liabilities are presented net in our condensed consolidated balance sheets when the derivative instruments are executed with the same counterparty under a master netting arrangement. Our derivative contracts include transactions that are executed both on an exchange and centrally cleared, as well as over-the-counter, bilateral contracts that are transacted directly with third parties. To the extent we have paid or received collateral related to the derivative assets or liabilities, such amounts would be presented net against the related derivative asset or liability’s fair value. As of March 31, 2022 and December 31, 2021, we offset $3.2 million and $0.5 million, respectively, in collateral to net against the related derivative asset and liability's fair value. The specific types of derivative instruments we may execute to manage the commodity price risk include the following: •Forward contracts, which commit us to purchase or sell energy commodities in the future; •Futures contracts, which are exchange-traded standardized commitments to purchase or sell a commodity or financial instrument; •Swap agreements, which require payments to or from counterparties based upon the differential between two prices for a predetermined notional quantity; and •Option contracts, which convey to the option holder the right but not the obligation to purchase or sell a commodity. The Company has entered into other energy-related contracts that do not meet the definition of a derivative instrument or for which we made a normal purchase, normal sale election and are therefore not accounted for at fair value including the following: •Forward electricity and natural gas purchase contracts for retail customer load; •Renewable energy credits; and •Natural gas transportation contracts and storage agreements. Volumes Underlying Derivative Transactions The following table summarizes the net notional volumes of our open derivative financial instruments accounted for at fair value by commodity. Positive amounts represent net buys while bracketed amounts are net sell transactions (in thousands): Non-trading
Trading
Gains (Losses) on Derivative Instruments Gains (losses) on derivative instruments, net and current period settlements on derivative instruments were as follows for the periods indicated (in thousands):
Gains (losses) on trading derivative instruments are recorded in net asset optimization revenues and gains (losses) on non-trading derivative instruments are recorded in retail cost of revenues on the condensed consolidated statements of operations. Fair Value of Derivative Instruments The following tables summarize the fair value and offsetting amounts of our derivative instruments by counterparty and collateral received or paid (in thousands):
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Property and Equipment |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment | 7. Property and Equipment Property and equipment consist of the following (in thousands):
Information technology assets include software and consultant time used in the application, development and implementation of various systems including customer billing and resource management systems. As of March 31, 2022 and December 31, 2021, information technology includes $0.4 million and $0.2 million, respectively, of costs associated with assets not yet placed into service. Depreciation expense recorded in the condensed consolidated statements of operations was $0.5 million and $0.4 million, respectively, for the three months ended March 31, 2022 and 2021, respectively.
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Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets | 8. Intangible Assets Goodwill, customer relationships and trademarks consist of the following amounts (in thousands):
Changes in goodwill, customer relationships and trademarks consisted of the following (in thousands):
During the three months ended March 31, 2022, the Company changed the estimated average life for Customer Relationships – Other from three years to eighteen months, resulting in approximately $0.9 million of additional amortization recorded in the three months ended March 31, 2022. Estimated future amortization expense for customer relationships and trademarks at March 31, 2022 is as follows (in thousands):
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Debt |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | 9. Debt Debt consists of the following amounts as of March 31, 2022 and December 31, 2021 (in thousands):
(1) As of March 31, 2022 and December 31, 2021, the weighted average interest rate on the Senior Credit Facility was 3.51% and 3.24%, respectively. (2) As of March 31, 2022 and December 31, 2021, we had $28.3 million and $27.7 million in letters of credit issued, respectively. Capitalized financing costs associated with our Senior Credit Facility were $1.5 million and $1.8 million as of March 31, 2022 and December 31, 2021, respectively. Of these amounts, $1.0 million and $1.0 million are recorded in other current assets, and $0.5 million and $0.8 million are recorded in other non-current assets in the condensed consolidated balance sheets as of March 31, 2022 and December 31, 2021, respectively. Interest expense consists of the following components for the periods indicated (in thousands):
Senior Credit Facility The Company, as guarantor, and Spark HoldCo (the “Borrower” and, together with each subsidiary of Spark HoldCo (“Co-Borrowers”)) maintain a senior secured borrowing base credit facility (as amended from time to time, “Senior Credit Facility”) that allows us to borrow on a revolving basis and has a maximum borrowing capacity of $227.5 million as of March 31, 2022. The Senior Credit Facility will mature on October 13, 2023, and all amounts outstanding thereunder will be payable on the maturity date. Borrowings under the Senior Credit Facility may be used to pay fees and expenses in connection with the Senior Credit Facility, finance ongoing working capital requirements and general corporate purpose requirements of the Co-Borrowers, and to provide partial funding for acquisitions, as allowed under terms of the Senior Credit Facility. The Senior Credit Facility provides for Acquisition Loans not to exceed 75% of the adjusted purchase price of the acquisition, as defined in the agreement. Pursuant to the Senior Credit Facility, the interest rate for Working Capital Loans and Letters of Credit is generally determined by reference to the Eurodollar rate plus an applicable margin of up to 3.25% per annum (based on the prevailing utilization) or an alternate base rate plus an applicable margin of up to 2.25% per annum (based on the prevailing utilization). The alternate base rate is equal to the highest of (i) the prime rate (as published in the Wall Street Journal), (ii) the federal funds rate plus 0.50% per annum, or (iii) the reference Eurodollar rate plus 1.00%. Borrowings under the Senior Credit Facility for Acquisition Loans are generally determined by reference to the Eurodollar rate plus an applicable margin of 4.00% per annum or the alternate base rate plus an applicable margin of 3.00% per annum. The Co-Borrowers pay a commitment fee of 0.50% quarterly in arrears on the unused portion of the Senior Credit Facility. In addition, the Co-Borrowers are subject to additional fees including an upfront fee, an annual agency fee, and letter of credit fees based on a percentage of the face amount of letters of credit payable to any syndicate member that issues a letter of credit. The Senior Credit Facility contains covenants that, among other things, require the maintenance of specified ratios or conditions including: •Minimum Fixed Charge Coverage Ratio. We must maintain a minimum fixed charge coverage ratio of not less than 1.25 to 1.00. The Minimum Fixed Charge Coverage Ratio is defined as the ratio of (a) Adjusted EBITDA to (b) the sum of consolidated (with respect to the Company and the Co-Borrowers) interest expense, letter of credit fees, commitment fees, acquisition earn-out payments (excluding earnout payments funded with proceeds from newly issued preferred or common equity), distributions, scheduled amortization payments, and payments made on or after the closing of the Fourth Amendment to the Senior Credit Facility (other than such payments made from escrow accounts which were funded in connection with a permitted acquisition) related to the settlement of civil and regulatory matters if not included in the calculation of Adjusted EBITDA. Our Minimum Fixed Charge Coverage Ratio as of March 31, 2022 was 1.62 to 1.00. •Maximum Total Leverage Ratio. We must maintain a ratio of (x) the sum of total indebtedness (excluding eligible subordinated debt and letter of credit obligations), plus (y) gross amounts reserved for civil and regulatory liabilities identified in SEC filings, to Adjusted EBITDA of no more than 2.50 to 1.00. Our Maximum Total Leverage Ratio as of March 31, 2022 was 2.00 to 1.00. •Maximum Senior Secured Leverage Ratio. We must maintain a Senior Secured Leverage Ratio of no more than 1.85 to 1.00. The Senior Secured Leverage Ratio is defined as the ratio of (a) all indebtedness of the loan parties on a consolidated basis that is secured by a lien on any property of any loan party (including the effective amount of all loans then outstanding under the Senior Credit Facility) to (b) Adjusted EBITDA. Our Maximum Senior Secured Leverage Ratio as of March 31, 2022 was 1.80 to 1.00. The Senior Credit Facility contains various negative covenants that limit our ability to, among other things, incur certain additional indebtedness, grant certain liens, engage in certain asset dispositions, merge or consolidate, make certain payments, distributions, investments, acquisitions or loans, materially modify certain agreements, or enter into transactions with affiliates. The Senior Credit Facility also contains affirmative covenants that are customary for credit facilities of this type. As of March 31, 2022, we were in compliance with our various covenants under the Senior Credit Facility. The Senior Credit Facility is secured by pledges of the equity of the portion of Spark HoldCo owned by us, the equity of Spark HoldCo’s subsidiaries, the Co-Borrowers’ present and future subsidiaries, and substantially all of the Co-Borrowers’ and their subsidiaries’ present and future property and assets, including accounts receivable, inventory and liquid investments, and control agreements relating to bank accounts. We are entitled to pay cash dividends to the holders of the Series A Preferred Stock and Class A common stock so long as: (a) no default exists or would result therefrom; (b) the Co-Borrowers are in pro forma compliance with all financial covenants before and after giving effect thereto; and (c) the outstanding amount of all loans and letters of credit does not exceed the borrowing base limits. The Senior Credit Facility contains certain customary representations and warranties and events of default. Events of default include, among other things, payment defaults, breaches of representations and warranties, covenant defaults, cross-defaults and cross-acceleration to certain indebtedness, certain events of bankruptcy, certain events under ERISA, material judgments in excess of $5.0 million, certain events with respect to material contracts, and actual or asserted failure of any guaranty or security document supporting the Senior Credit Facility to be in full force and effect. A default will also occur if at any time W. Keith Maxwell III ceases to, directly or indirectly, own at least 13,600,000 Class A and Class B shares on a combined basis (to be adjusted for any stock split, subdivisions or other stock reclassification or recapitalization), and a controlling percentage of the voting equity interest of the Company, and certain other changes in control. If such an event of default occurs, the lenders under the Senior Credit Facility would be entitled to take various actions, including the acceleration of amounts due under the facility and all actions permitted to be taken by a secured creditor. Subordinated Debt Facility The Company maintains an Amended and Restated Subordinated Promissory Note in the principal amount of up to $25.0 million (the “Subordinated Debt Facility”), by and among the Company, Spark HoldCo and Retailco. The Subordinated Debt Facility matures on January 31, 2025. The Subordinated Debt Facility allows us to draw advances in increments of no less than $1.0 million per advance up to the maximum principal amount of the Subordinated Debt Facility. Advances thereunder accrue interest at 5% per annum from the date of the advance. We have the right to capitalize interest payments under the Subordinated Debt Facility. The Subordinated Debt Facility is subordinated in certain respects to our Senior Credit Facility pursuant to a subordination agreement. We may pay interest and prepay principal on the Subordinated Debt Facility so long as we are in compliance with the covenants under our Senior Credit Facility, are not in default under the Senior Credit Facility and have minimum availability of $5.0 million under the borrowing base under the Senior Credit Facility. Payment of principal and interest under the Subordinated Debt Facility is accelerated upon the occurrence of certain change of control or sale transactions. As of March 31, 2022, and December 31, 2021, there were $15.0 million and zero, respectively, of outstanding borrowings under the Subordinated Debt Facility.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | 10. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants at the measurement date. Fair values are based on assumptions that market participants would use when pricing an asset or liability, including assumptions about risk and the risks inherent in valuation techniques and the inputs to valuations. This includes the credit standing of counterparties involved and the impact of credit enhancements. We apply fair value measurements to our commodity derivative instruments based on the following fair value hierarchy, which prioritizes the inputs to the valuation techniques used to measure fair value into three broad levels: •Level 1—Quoted prices in active markets for identical assets and liabilities. Instruments categorized in Level 1 primarily consist of financial instruments such as exchange-traded derivative instruments. •Level 2—Inputs other than quoted prices recorded in Level 1 that are either directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived from observable market data by correlation or other means. Instruments categorized in Level 2 primarily include non-exchange traded derivatives such as over-the-counter commodity forwards and swaps and options. •Level 3—Unobservable inputs for the asset or liability, including situations where there is little, if any, observable market activity for the asset or liability. As the fair value hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable data (Level 3), the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. These levels can change over time. In some cases, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. In these cases, the lowest level input that is significant to a fair value measurement in its entirety determines the applicable level in the fair value hierarchy. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables present assets and liabilities measured and recorded at fair value in our condensed consolidated balance sheets on a recurring basis by and their level within the fair value hierarchy (in thousands):
We had no transfers of assets or liabilities between any of the above levels during the three months ended March 31, 2022 and the year ended December 31, 2021. Our derivative contracts include exchange-traded contracts valued utilizing readily available quoted market prices and non-exchange-traded contracts valued using market price quotations available through brokers or over-the-counter and on-line exchanges. In addition, in determining the fair value of our derivative contracts, we apply a credit risk valuation adjustment to reflect credit risk, which is calculated based on our or the counterparty’s historical credit risks. As of March 31, 2022 and December 31, 2021, the credit risk valuation adjustment was a reduction of derivative assets and liabilities, net of $0.1 million and $0.1 million, respectively.
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Income Taxes |
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Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes Income Taxes We and our subsidiaries, CenStar and Verde Energy USA, Inc. ("Verde Corp"), are each subject to U.S. federal income tax as corporations. CenStar and Verde Corp file consolidated tax returns in jurisdictions that allow combined reporting. Spark HoldCo and its subsidiaries, with the exception of CenStar and Verde Corp, are treated as flow-through entities for U.S. federal income tax purposes and, as such, are generally not subject to U.S. federal income tax at the entity level. Rather, the tax liability with respect to their taxable income is passed through to their members or partners. Accordingly, we are subject to U.S. federal income taxation on our allocable share of Spark HoldCo’s net U.S. taxable income. In our financial statements, we report federal and state income taxes for our share of the partnership income attributable to our ownership in Spark HoldCo and for the income taxes attributable to CenStar and Verde Corp. Net income attributable to non-controlling interest includes the provision for income taxes related to CenStar and Verde Corp. We account for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and the tax bases of the assets and liabilities. We apply existing tax law and the tax rate that we expect to apply to taxable income in the years in which those differences are expected to be recovered or settled in calculating the deferred tax assets and liabilities. Effects of changes in tax rates on deferred tax assets and liabilities are recognized in income in the period of the tax rate enactment. A valuation allowance is recorded when it is not more likely than not that some or all of the benefit from the deferred tax asset will be realized. We periodically assess whether it is more likely than not that we will generate sufficient taxable income to realize our deferred income tax assets. In making this determination, we consider all available positive and negative evidence and make certain assumptions. We consider, among other things, our deferred tax liabilities, the overall business environment, our historical earnings and losses, current industry trends, and our outlook for future years. We believe it is more likely than not that our deferred tax assets will be utilized, and accordingly have not recorded a valuation allowance on these assets. As of March 31, 2022, we had a net deferred tax asset of $20.0 million, due in large part to the original step up in tax basis resulting from the initial purchase of Spark HoldCo units from NuDevco Retail and NuDevco Retail Holdings (predecessor to Retailco) in connection with our initial public offering. The effective U.S. federal and state income tax rate for the three months ended March 31, 2022 and 2021 was 16.3% and 5.3%, respectively. The effective tax rate for the three months ended March 31, 2022 differed from the U.S. federal statutory tax rate of 21% primarily due to state taxes and the benefit provided from Spark HoldCo operating as a limited liability company, which is treated as a partnership for federal and state income tax purposes and is not subject to federal and state income taxes. Accordingly, the portion of earnings attributable to non-controlling interest is subject to tax when reported as a component of the non-controlling interest holders' taxable income.
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Commitments and Contingencies |
3 Months Ended |
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Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies From time to time, we may be involved in legal, tax, regulatory and other proceedings in the ordinary course of business. Liabilities for loss contingencies arising from claims, assessments, litigation or other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal Proceedings Below is a summary of our currently pending material legal proceedings. We are subject to lawsuits and claims arising in the ordinary course of our business. The following legal proceedings are in various stages and are subject to substantial uncertainties concerning the outcome of material factual and legal issues. Accordingly, unless otherwise specifically noted, we cannot currently predict the manner and timing of the resolutions of these legal proceedings or estimate a range of possible losses or a minimum loss that could result from an adverse verdict in a potential lawsuit. While the lawsuits and claims are asserted for amounts that may be material should an unfavorable outcome occur, management does not currently expect that any currently pending matters will have a material adverse effect on our financial position or results of operations. Consumer Lawsuits Similar to other energy service companies (“ESCOs”) operating in the industry, from time-to-time, the Company is subject to class action lawsuits in various jurisdictions where the Company sells natural gas and electricity. Variable Rate Cases In the cases referred to as Variable Rate Cases, such actions involve consumers alleging they paid higher rates than they would have if they stayed with their default utility. The underlying claims of each case are similar; however, because numerous cases have been brought in several different jurisdictions, the varying applicable case law, the varying facts and stages of each case, the Company agreed to mediate to avoid duplicative defense costs in numerous jurisdictions. The Company continues to deny the allegations asserted by Plaintiffs and intends to vigorously defend these matters. In January 2022, the Company participated in mediation which covered three Spark brand matters: (1) Janet Rolland et al v. Spark Energy, LLC (D.N.J Apr. 2017); (2) Burger v. Spark Energy Gas, LLC (N.D. Ill. Dec. 2019); and (3) Local 901 v. Spark Energy, LLC (Sup. Ct. Allen County, Indiana Aug. 2019). The Company is working with an independent mediator to find a resolution to these cases, and the parties have suspended litigation pending a mutually agreed settlement. Given the ongoing mediation we cannot predict the outcome of these cases at this time. In December of 2020, the Company participated in mediation which covered several Verde brand matters: (1) Marshall. Verde Energy USA, Inc. (D.N.J. Jan. 2018); (2) Mercado v. Verde Energy USA, Inc. (N.D. Ill. Mar. 2018); (3) Davis v. Verde Energy USA, Inc., et al. (D. Mass. Apr. 2019); (4) Panzer v. Verde Energy, USA Inc. and Oasis Power, LLC (E.D. Pa Aug. 2019); (5) LaQua v. Verde Energy USA New York, LLC (E.D.N Y. Jan. 2020); and (6) Abbate v. Verde Energy USA Ohio, LLC (S.D. Ohio Jun. 2020).The parties agreed to a global settlement that would resolve all of these Verde cases on a nationwide basis. On December 17, 2021, the class action settlement agreement was granted final approval in the United States District Court for the Northern District of Illinois Eastern Division, and the deadline for consumers to file a claim was March 31, 2022. On January 14, 2021, Glikin, et. all v. Major Energy Electric Services, LLC, a purported variable rate class action was filed in the United States District Court, Southern District of New York, attempting to represent a class of all Major Energy customers (including customers of companies Major Energy acts as a successor to) in the United States charged a variable rate for electricity or gas by Major Energy during the applicable statute of limitations period up to and including the date of judgment. The Company believes there is no merit to this case and plans to vigorously defend this matter; however, given the current early stage of this matter, we cannot predict the outcome of this case at this time. Corporate Matter Lawsuits Saul Horowitz, as Sellers’ Representative for the former owners of the Major Energy Companies v. National Gas & Electric, LLC (“NG&E”) and Spark Energy, Inc., was a lawsuit filed on October 17, 2017 in the United States District Court for the Southern District of New York related to the Company's purchase of Major Energy and structure of the earn-out in connection therewith ("Major Earn-Out Case") asserting claims of fraudulent inducement against NG&E, breach of contract against NG&E and Spark, and tortious interference with contract against Spark related to a membership interest purchase agreement, subsequent dropdown, and associated earnout agreements with the Major Energy Companies' former owners. On September 30, 2021, the Court held in favor of the Company on all claims and entered judgment in favor of the Company to close this case. On October 29, 2021, plaintiffs filed a notice of appeal to the Second Circuit Court of Appeals. The Company will continue to aggressively defend this matter. Several smaller, related cases to the Major Earn-Out Case involving the same facts are pending in the United States District Court for the Southern District of New York. These are regarding Major Energy executive compensation agreements. The Company believes there is no merit to these cases and is vigorously defending these matters; however, we cannot predict the outcome of these cases at this time. In addition to the matters disclosed above, the Company may from time to time be subject to legal proceedings that arise in the ordinary course of business. Although there can be no assurance in this regard, the Company does not expect any of those legal proceedings to have a material adverse effect on the Company’s results of operations, cash flows or financial condition. Regulatory Matters Many state regulators have increased scrutiny on retail energy providers, across all industry providers. We are subject to regular regulatory inquiries, license renewal reviews, and preliminary investigations in the ordinary course of our business. Below is a summary of our currently pending material state regulatory matters. The following state regulatory matters are in various stages and are subject to substantial uncertainties concerning the outcome of material factual and legal issues. Accordingly, we cannot currently predict the manner and timing of the resolution of these state regulatory matters or estimate a range of possible losses or a minimum loss that could result from an adverse action. Management does not currently expect that any currently pending state regulatory matters will have a material adverse effect on our financial position or results of operations. Connecticut. In 2019, PURA initiated review of two of the Company's brands in Connecticut, Spark and Verde, focusing on marketing, billing and enrollment practices. The Company has and is cooperating with PURA's requests to review Spark and Verde practices in Connecticut. New York. Prior to the purchase of Major Energy by the Company, in 2015, Major Energy Services, LLC and Major Energy Electric Services were contacted by the Attorney General, Bureau of Consumer Frauds & Protection for State of New York relating to their marketing practices. Major Energy has exchanged information in response to various requests from the Attorney General and recently agreed to respond to additional questions via remote proceedings in October of 2020. In January 2022, New York State Attorney General filed a complaint against Major Energy regarding the historical acts of Major Energy (a pre-acquisition matter). Via Renewables, Inc. was also named in the action due to current ownership. We are responding to the complaint (due end of April 2022) and seeking indemnification from the Major Energy former owners. Pennsylvania. Verde Energy USA, Inc. (“Verde”) was the subject of a formal investigation by the Pennsylvania Public Utility Commission, Bureau of Investigation and Enforcement (“PPUC”) initiated on January 30, 2020. The investigation asserted that Verde may have violated Pennsylvania retail energy supplier regulations. The Company met with the PPUC in February 2020 to discuss the matter and to work with the PPUC cooperatively. Verde reached a settlement, which included payment of a civil penalty of $1.0 million and a $0.1 million contribution to the PPL hardship fund. On June 30, 2020, Verde and PPUC Bureau of Investigation and Enforcement filed a Joint Petition for Approval of Settlement and Statements in Support of that Joint Petition with the Commission. This settlement should be approved by mid-2022. In addition to the matters disclosed above, in the ordinary course of business, the Company may from time to time be subject to regulators initiating informal reviews or issuing subpoenas for information as means to evaluate the Company and its subsidiaries’ compliance with applicable laws, rule, regulations and practices. Although there can be no assurance in this regard, the Company does not expect any of those regulatory reviews to have a material adverse effect on the Company’s results of operations, cash flows or financial condition. Indirect Tax Audits We are undergoing various types of indirect tax audits spanning from years 2018 to 2021 for which additional liabilities may arise. At the time of filing these consolidated financial statements, these indirect tax audits are at an early stage and subject to substantial uncertainties concerning the outcome of audit findings and corresponding responses. As of March 31, 2022 and December 31, 2021, we had accrued $11.3 million and $14.7 million, respectively, related to litigation and regulatory matters and $0.3 million and $0.7 million, respectively, related to indirect tax audits. The outcome of each of these may result in additional expense.
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Transactions with Affiliates |
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Transactions with Affiliates | 13. Transactions with Affiliates Transactions with Affiliates We enter into transactions with and pay certain costs on behalf of affiliates that are commonly controlled in order to reduce risk, reduce administrative expense, create economies of scale, create strategic alliances and supply goods and services to these related parties. We also sell and purchase natural gas and electricity with affiliates and pay an affiliate to perform telemarketing activities. We present receivables and payables with the same affiliate on a net basis in the condensed consolidated balance sheets as all affiliate activity is with parties under common control. Affiliated transactions include certain services to the affiliated companies associated with employee benefits provided through our benefit plans, insurance plans, leased office space, administrative salaries, due diligence work, recurring management consulting, and accounting, tax, legal, or technology services. Amounts billed are based on the services provided, departmental usage, or headcount, which are considered reasonable by management. As such, the accompanying condensed consolidated financial statements include costs that have been incurred by us and then directly billed or allocated to affiliates, as well as costs that have been incurred by our affiliates and then directly billed or allocated to us, and are recorded net in general and administrative expense on the condensed consolidated statements of operations with a corresponding accounts receivable—affiliates or accounts payable—affiliates, respectively, recorded in the condensed consolidated balance sheets. Transactions with affiliates for sales or purchases of natural gas and electricity are recorded in retail revenues, retail cost of revenues, and net asset optimization revenues in the condensed consolidated statements of operations with a corresponding accounts receivable—affiliate or accounts payable—affiliate are recorded in the condensed consolidated balance sheets. The following tables presents asset and liability balances with affiliates (in thousands):
(1) The Subordinated Debt Facility allows us to draw advances in increments of no less than $1.0 million per advance up to the maximum principal amount of the Subordinated Debt Facility. Advances thereunder accrue interest at 5% per annum from the date of the advance. See Note 9 "Debt" for a further description of terms and conditions of the Subordinated Debt Facility. The following table presents revenues and cost of revenues recorded in net asset optimization revenue associated with affiliates for the periods indicated (in thousands):
Cost Allocations Where costs incurred on behalf of the affiliate or us cannot be determined by specific identification for direct billing, the costs are allocated to the affiliated entities or us based on estimates of percentage of departmental usage, wages or headcount. The total net amount direct billed and allocated to/(from) affiliates was $0.1 million and $(0.8) million for the three months ended March 31, 2022 and 2021, respectively. General and administrative costs of zero and $0.1 million were recorded for the three months ended March 31, 2022 and 2021, respectively. The general and administrative costs relate to telemarketing activities performed by an affiliate. Distributions to and Contributions from Affiliates During three months ended March 31, 2022 and 2021, Spark HoldCo made distributions to affiliates of our Founder of $3.6 million and $3.8 million, respectively, for the payments of quarterly distribution on their respective Spark HoldCo units. During the three months ended March 31, 2022 and 2021, Spark HoldCo also made distributions to these affiliates for gross-up distributions of $0.1 million and $2.7 million, respectively, in connection with distributions made between Spark HoldCo and Via Renewables, Inc. for payment of income taxes incurred by us.
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Segment Reporting |
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Segment Reporting | 14. Segment Reporting Our determination of reportable business segments considers the strategic operating units under which we make financial decisions, allocate resources and assess performance of our business. Our reportable business segments are retail electricity and retail natural gas. The retail electricity segment consists of electricity sales and transmission to residential and commercial customers, and related services. The retail natural gas segment consists of natural gas sales to, and natural gas transportation and distribution for, residential and commercial customers. Corporate and other consists of expenses and assets of the retail electricity and natural gas segments that are managed at a consolidated level such as general and administrative expenses. Asset optimization activities are also included in Corporate and other. For the three months ended March 31, 2022 and 2021, we recorded asset optimization revenues of $27.3 million and $25.7 million and asset optimization cost of revenues of $28.2 million and $25.8 million, respectively, which are presented on a net basis in asset optimization revenues. We use retail gross margin to assess the performance of our operating segments. We have historically defined retail gross margin as operating (loss) income plus (i) depreciation and amortization expenses and (ii) general and administrative expenses, less (i) net asset optimization (expenses) revenues, (ii) net (losses) gains on non-trading derivative instruments, and (iii) net current period cash settlements on non-trading derivative instruments. Based on the events described below related to the February 2021 North American winter storm referred to as Winter Storm Uri ("Winter Storm Uri"), and to ensure Retail Gross Margin reflects repeatable operating performance that is not distorted by non-recurring events or extreme market volatility, we have revised the definition of Retail Gross Margin in this Report to include gains (losses) from non-recurring events (including non-recurring market volatility). We deduct net (losses) gains on non-trading derivative instruments, excluding current period cash settlements, from the retail gross margin calculation in order to remove the non-cash impact of net gains and losses on these derivative instruments. Retail gross margin should not be considered an alternative to, or more meaningful than, operating income, as determined in accordance with GAAP. Below is a reconciliation of retail gross margin to income before income tax expense (in thousands):
Financial data for business segments are as follows (in thousands):
(a) Retail Electricity includes related services.
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Customer Acquisitions |
3 Months Ended |
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Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Customer Acquisitions | Customer Acquisitions Acquisition of Customer Books In May 2021, we entered into a series of asset purchase agreements and agreed to acquire up to approximately 56,900 RCEs for a cash purchase price of up to a maximum of $11.5 million. These customers began transferring in August 2021, and are located in our existing markets. As of March 31, 2022, a total of $6.8 million was paid for approximately 45,000 RCEs ($9.2 million for acquired customer contracts, net of $2.4 million related holdbacks under the terms of the purchase agreement). In addition, approximately $2.2 million was released back to us for a reduction in RCEs to be acquired. As part of the acquisitions, we funded an escrow account, the balance of which is reflected as restricted cash in our consolidated balance sheet. As we acquire customers, we make payments to the sellers from the escrow account. As of March 31, 2022, the balance in the escrow account was $2.4 million, and these funds are expected to be released to the sellers as acquired customers transfer from the sellers to the Company in accordance with the asset purchase agreement, and any unallocated balance will be returned to the Company once the acquisition is complete. In July 2021, we entered into an agreement to acquire up to approximately 50,000 RCEs and derivatives related to the customer load under a five-year contingent fee structure based on gas volume billed and collected for the acquired customer contracts. These customers began transferring in the fourth quarter of 2021, and are located in our existing markets. Due to the contingent fee structure, the cost of the RCEs will be recognized when probable and reasonably estimable. Acquisition of Broker Books In January 2022, we entered into an asset purchase agreement and agreed to acquire the rights to broker contracts for approximately 1,000 customers for a cash price of $0.4 million, which was paid upon execution of the contract.
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Subsequent Events |
3 Months Ended |
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Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. Subsequent Events Declaration of Dividends On April 21, 2022, we declared a quarterly dividend of $0.18125 per share to holders of record of our Class A common stock on June 1, 2022, which will be paid on June 15, 2022. On April 21, 2022, we also declared a quarterly cash dividend in the amount of $0.476393 per share to holders of record of the Series A Preferred Stock on July 1, 2022. The dividend will be paid on July 15, 2022.
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Basis of Presentation and Summary of Significant Accounting Policies (Policies) |
3 Months Ended |
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Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying interim unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) as it applies to interim financial statements. This information should be read along with our consolidated financial statements and notes contained in our annual report on Form 10-K for the year ended December 31, 2021 (the “2021 Form 10-K”). Our unaudited condensed consolidated financial statements are presented on a consolidated basis and include all wholly-owned and controlled subsidiaries. We account for investments over which we have significant influence but not a controlling financial interest using the equity method of accounting. All significant intercompany transactions and balances have been eliminated in the unaudited condensed consolidated financial statements.
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Use of Estimates and Assumptions | Use of Estimates and Assumptions The preparation of our condensed consolidated financial statements requires estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim financial statements and the reported amounts of revenues and expenses during the period. Actual results could materially differ from those estimates.
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New Accounting Standards Recently Adopted and Standards Being Evaluated/Standards Not Yet Adopted | New Accounting Standards Recently Adopted There have been no changes to our significant accounting policies as disclosed in our 2021 Form 10-K, except as follows: In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2020-04, Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04"). The amendments in ASU 2020-04 provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform ("ASU 2021-01"), which clarifies the scope and application of certain optional expedients and exceptions regarding the original guidance. The amendments in these ASUs were effective upon issuance and can be applied prospectively through December 31, 2022. The Company's Senior Credit Facility and Series A Preferred Stock Certificate of Designations make reference to a LIBOR rate. The Senior Credit Facility outlines the specific procedures that will be undertaken once an appropriate alternative benchmark is identified. We adopted ASU 2020-04 effective January 1, 2022 and the adoption did not have a material impact on our consolidated financial statements. Standards Being Evaluated/Standards Not Yet Adopted The Company considers the applicability and impact of all ASUs. New ASUs were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial statements.
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Derivative Instruments | Derivative assets and liabilities are presented net in our condensed consolidated balance sheets when the derivative instruments are executed with the same counterparty under a master netting arrangement. Our derivative contracts include transactions that are executed both on an exchange and centrally cleared, as well as over-the-counter, bilateral contracts that are transacted directly with third parties. To the extent we have paid or received collateral related to the derivative assets or liabilities, such amounts would be presented net against the related derivative asset or liability’s fair value. |
Fair Value Measurements | Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants at the measurement date. Fair values are based on assumptions that market participants would use when pricing an asset or liability, including assumptions about risk and the risks inherent in valuation techniques and the inputs to valuations. This includes the credit standing of counterparties involved and the impact of credit enhancements. We apply fair value measurements to our commodity derivative instruments based on the following fair value hierarchy, which prioritizes the inputs to the valuation techniques used to measure fair value into three broad levels: •Level 1—Quoted prices in active markets for identical assets and liabilities. Instruments categorized in Level 1 primarily consist of financial instruments such as exchange-traded derivative instruments. •Level 2—Inputs other than quoted prices recorded in Level 1 that are either directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived from observable market data by correlation or other means. Instruments categorized in Level 2 primarily include non-exchange traded derivatives such as over-the-counter commodity forwards and swaps and options. •Level 3—Unobservable inputs for the asset or liability, including situations where there is little, if any, observable market activity for the asset or liability. As the fair value hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable data (Level 3), the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. These levels can change over time. In some cases, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. In these cases, the lowest level input that is significant to a fair value measurement in its entirety determines the applicable level in the fair value hierarchy.
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Revenues (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disaggregated Revenue | The following table discloses revenue by primary geographical market, customer type, and customer credit risk profile (in thousands). The table also includes a reconciliation of the disaggregated revenue to revenue by reportable segment (in thousands).
(a) Retail Electricity includes Services (b) The primary markets include the following states: •New England - Connecticut, Maine, Massachusetts, New Hampshire; •Mid-Atlantic - Delaware, Maryland (including the District of Colombia), New Jersey, New York and Pennsylvania; •Midwest - Illinois, Indiana, Michigan and Ohio; and •Southwest - Arizona, California, Colorado, Florida, Nevada, and Texas. (c) Unbilled revenue is recorded in total until it is actualized, at which time it is categorized between commercial and residential customers.
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Schedule of Accounts Receivable, Allowance for Credit Loss | A rollforward of our allowance for credit losses for the three months ended March 31, 2022 are presented in the table below (in thousands):
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Equity (Tables) |
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Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Economic Interests | The Company and affiliates owned the following economic interests in Spark HoldCo at March 31, 2022 and December 31, 2021, respectively.
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Summary of Net Income (Loss) and Income Tax Expense (Benefit) Attributable to Non-controlling Interest | The following table summarizes the portion of net income and income tax expense attributable to non-controlling interest (in thousands):
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Schedule of Computation of Basic and Diluted Income (Loss) Per Share | The following table presents the computation of basic and diluted income per share for the three months ended March 31, 2022 and 2021 (in thousands, except per share data):
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Schedule of Carrying Amounts and Classification of Assets and Liabilities | The following table includes the carrying amounts and classification of the assets and liabilities of Spark HoldCo that are included in our condensed consolidated balance sheet as of March 31, 2022 and December 31, 2021 (in thousands):
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Preferred Stock (Tables) |
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Preferred Equity Balance | A summary of our preferred equity balance for the three months ended March 31, 2022 is as follows:
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Derivative Instruments (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Volumetric Underlying Derivative Transactions | The following table summarizes the net notional volumes of our open derivative financial instruments accounted for at fair value by commodity. Positive amounts represent net buys while bracketed amounts are net sell transactions (in thousands): Non-trading
Trading
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Schedule of Gains (Losses) on Derivative Instruments | Gains (losses) on derivative instruments, net and current period settlements on derivative instruments were as follows for the periods indicated (in thousands):
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Schedule of Offsetting Assets | The following tables summarize the fair value and offsetting amounts of our derivative instruments by counterparty and collateral received or paid (in thousands):
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Schedule of Offsetting Liabilities |
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Property and Equipment (Tables) |
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property and Equipment | Property and equipment consist of the following (in thousands):
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Intangible Assets (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill, Customer Relationships and Trademarks | Goodwill, customer relationships and trademarks consist of the following amounts (in thousands):
Changes in goodwill, customer relationships and trademarks consisted of the following (in thousands):
During the three months ended March 31, 2022, the Company changed the estimated average life for Customer Relationships – Other from three years to eighteen months, resulting in approximately $0.9 million of additional amortization recorded in the three months ended March 31, 2022.
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Schedule of Estimated Future Amortization Expense | Estimated future amortization expense for customer relationships and trademarks at March 31, 2022 is as follows (in thousands):
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Debt (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | Debt consists of the following amounts as of March 31, 2022 and December 31, 2021 (in thousands):
(1) As of March 31, 2022 and December 31, 2021, the weighted average interest rate on the Senior Credit Facility was 3.51% and 3.24%, respectively. (2) As of March 31, 2022 and December 31, 2021, we had $28.3 million and $27.7 million in letters of credit issued, respectively.
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Schedule of Components of Interest Expense | Interest expense consists of the following components for the periods indicated (in thousands):
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Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present assets and liabilities measured and recorded at fair value in our condensed consolidated balance sheets on a recurring basis by and their level within the fair value hierarchy (in thousands):
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Transactions with Affiliates (Tables) |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions | The following tables presents asset and liability balances with affiliates (in thousands):
(1) The Subordinated Debt Facility allows us to draw advances in increments of no less than $1.0 million per advance up to the maximum principal amount of the Subordinated Debt Facility. Advances thereunder accrue interest at 5% per annum from the date of the advance. See Note 9 "Debt" for a further description of terms and conditions of the Subordinated Debt Facility. The following table presents revenues and cost of revenues recorded in net asset optimization revenue associated with affiliates for the periods indicated (in thousands):
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Segment Reporting (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reconciliation of Retail Gross Margin to Income Before Income Tax Expense | Below is a reconciliation of retail gross margin to income before income tax expense (in thousands):
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Schedule of Financial Data for Business Segments | Financial data for business segments are as follows (in thousands):
(a) Retail Electricity includes related services.
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Revenues - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Disaggregation of Revenue [Line Items] | ||
Typical length of contract | Electricity and natural gas products may be sold as fixed-price or variable-price products. The typical length of a contract to provide electricity and/or natural gas is twelve months. | |
Electric and Gas Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Excise and sales taxes | $ 0.3 | $ 0.3 |
Cost of Services Energy Services | ||
Disaggregation of Revenue [Line Items] | ||
Excise and sales taxes | $ 1.4 | $ 1.2 |
Revenues - Accounts Receivable, Allowance for Credit Loss (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
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Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Current period bad debt provision | $ 1,024 | $ (247) |
Trade Accounts Receivable | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | (2,368) | |
Current period bad debt provision | (1,024) | |
Write-offs | 356 | |
Recovery of previous write offs | (19) | |
Ending balance | $ (3,055) |
Equity - Schedule of Economic Interests (Details) - The Company |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2022 |
Dec. 31, 2021 |
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Class of Stock [Line Items] | ||
Economic interest | 44.14% | 44.12% |
Affiliated Owners | ||
Class of Stock [Line Items] | ||
Economic interest | 55.86% | 55.88% |
Equity - Non-controlling Interest (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
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Equity [Abstract] | ||
Net income (loss) allocated to non-controlling interest | $ 19,347 | $ (18,321) |
Income tax expense allocated to non-controlling interest | 1,295 | 1,608 |
Less: Net income attributable to non-controlling interests | $ 18,052 | $ (19,929) |
Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands |
1 Months Ended | 3 Months Ended | |
---|---|---|---|
Jul. 31, 2021 |
Mar. 31, 2022 |
Mar. 31, 2021 |
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Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Payment of dividends to Class A common stockholders | $ 2,838 | $ 2,651 | |
Common Class B | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Conversion of stock, shares converted (in shares) | 800,000 | ||
Conversion ratio (in shares) | 1 | ||
Shares excluded from computation of diluted earnings per share (in shares) | 20,000,000 | 20,800,000 | |
Common Class A | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Dividends paid (in dollars per share) | $ 0.18125 | $ 0.18125 |
Preferred Stock - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Apr. 15, 2022 |
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Class of Stock [Line Items] | |||
Payments of ordinary dividends, preferred stock and preference stock | $ 1,951 | $ 1,951 | |
Series A Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock dividend accrual rate | 8.75% | ||
Payments of ordinary dividends, preferred stock and preference stock | $ 1,900 | ||
Dividend accrual | $ 2,000 | ||
Series A Preferred Stock | Forecast | |||
Class of Stock [Line Items] | |||
Preferred stock dividend accrual rate | 6.578% | ||
Preferred stock, liquidation preference (in dollar per share) | $ 25.00 |
Preferred Stock - Summary of Preferred Equity Balance (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2022
USD ($)
| |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Beginning balance | $ 87,288 |
Repurchase of Series A Preferred Stock | 0 |
Accumulated dividends on Series A Preferred Stock | 0 |
Ending balance | $ 87,288 |
Derivative Instruments - Narrative (Details) - USD ($) $ in Millions |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Collateral paid | $ 3.2 | $ 0.5 |
Derivative Instruments - Volumetric Underlying Derivative Transactions (Details) - Buy MWh in Thousands, MMBTU in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2022
MWh
MMBTU
|
Dec. 31, 2021
MMBTU
MWh
|
|
Gain on non-trading derivatives, net | Natural Gas | ||
Derivatives, Fair Value [Line Items] | ||
Net notional volume (energy measure) | 3,807 | 3,862 |
Gain on non-trading derivatives, net | Electricity | ||
Derivatives, Fair Value [Line Items] | ||
Net notional volume (energy measure) | MWh | 1,893 | 1,785 |
Gain (loss) on trading derivatives, net | Natural Gas | ||
Derivatives, Fair Value [Line Items] | ||
Net notional volume (energy measure) | 1,437 | 1,536 |
Derivative Instruments - Gains (Losses) on Derivative Instruments (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain on derivatives, net | $ 45,063 | $ 7,024 |
Total current period settlements on derivatives | (13,136) | (1,185) |
Gain on non-trading derivatives, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain on derivatives, net | 43,916 | 7,054 |
Total current period settlements on derivatives | (13,320) | (1,189) |
Gain (loss) on trading derivatives, net | Non-cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain on derivatives, net | 1,147 | (30) |
Total current period settlements on derivatives | $ 184 | $ 4 |
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Dec. 31, 2021 |
|
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 7,157 | $ 7,491 |
Accumulated depreciation | (2,769) | (3,230) |
Property and equipment—net | 4,388 | 4,261 |
Information technology | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 7,137 | 6,534 |
Information technology | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives (years) | 2 years | |
Information technology | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives (years) | 5 years | |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 20 | $ 957 |
Furniture and fixtures | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives (years) | 2 years | |
Furniture and fixtures | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives (years) | 5 years |
Property and Equipment - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Dec. 31, 2021 |
|
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 0.5 | $ 0.4 | |
Information technology | |||
Property, Plant and Equipment [Line Items] | |||
Costs associated with assets not yet placed into service | $ 0.4 | $ 0.2 |
Intangible Assets - Schedule of Goodwill, Customer Relationships and Trademarks (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | $ 120,343 | $ 120,343 |
Total | 13,796 | |
Customer relationships—Acquired | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 45,452 | 46,552 |
Accumulated amortization | (42,253) | (41,120) |
Total | 3,199 | 5,432 |
Customer relationships—Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 9,544 | 15,955 |
Accumulated amortization | (2,228) | (7,204) |
Total | 7,316 | 8,751 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 7,040 | 7,040 |
Accumulated amortization | (3,759) | (3,508) |
Total | $ 3,281 | $ 3,532 |
Intangible Assets - Estimated Future Amortization Expense (Details) $ in Thousands |
Mar. 31, 2022
USD ($)
|
---|---|
Year ending December 31, | |
2022 (remaining nine months) | $ 10,113 |
2023 | 1,099 |
2024 | 533 |
2025 | 436 |
2026 | 404 |
> 5 years | 1,211 |
Total | $ 13,796 |
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2022 |
Dec. 31, 2021 |
Mar. 31, 2021 |
|
Debt Instrument [Line Items] | |||
Total long-term debt | $ 135,000 | $ 121,000 | |
Total debt | 135,000 | 121,000 | |
Senior Credit Facility | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 135,000 | 106,000 | |
Weighted average interest rate | 3.51% | 3.24% | |
Letters of credit issued | $ 28,300 | $ 27,700 | |
Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 0 | $ 15,000 |
Debt - Components of Interest Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Line of Credit Facility [Line Items] | ||
Amortization of deferred financing costs | $ 245 | $ 259 |
Interest Expense | 1,307 | 1,311 |
Other | ||
Line of Credit Facility [Line Items] | ||
Senior Credit Facility | 1 | 182 |
Senior Credit Facility | Senior Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Senior Credit Facility | 696 | 468 |
Letters of credit fees and commitment fees | ||
Line of Credit Facility [Line Items] | ||
Letters of credit fees and commitment fees | $ 365 | $ 402 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Related Party Transaction [Line Items] | ||
Income tax rate | 16.30% | 5.30% |
NuDevco Retail Holdings and NuDevco Retail | ||
Related Party Transaction [Line Items] | ||
Deferred tax assets | $ 20.0 |
Commitments and Contingencies (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Dec. 31, 2021 |
|
Litigation and Regulatory Matters | ||
Loss Contingencies [Line Items] | ||
Contingent liabilities | $ 11.3 | $ 14.7 |
Indirect Tax Audits | ||
Loss Contingencies [Line Items] | ||
Contingent liabilities | 0.3 | $ 0.7 |
Verde Energy USA, Inc. | ||
Loss Contingencies [Line Items] | ||
Damages penalty | 1.0 | |
Settlement | $ 0.1 |
Transactions with Affiliates - Related Party Transactions (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Dec. 31, 2021 |
|
Assets | |||
Accounts receivable—affiliates | $ 3,718 | $ 3,819 | |
Total Assets - affiliates | 3,718 | 3,819 | |
Liabilities | |||
Accounts payable—affiliates | 437 | 491 | |
Subordinated debt—affiliates | 15,000 | 0 | |
Total Liabilities - affiliates | 15,437 | $ 491 | |
Revenue NAO - affiliates | (904) | $ (140) | |
Affiliated Entity | |||
Liabilities | |||
Revenue NAO - affiliates | 951 | 345 | |
Cost of Revenue NAO - affiliates | 29 | 2 | |
Net NAO - affiliates | $ 922 | $ 343 |
Transactions with Affiliates - Narrative (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Related Party Transaction [Line Items] | ||
General and administrative expense | $ 14,935,000 | $ 12,671,000 |
Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
General and administrative expense | 0 | 100,000 |
Affiliated Entity | Allocated Overhead Costs | ||
Related Party Transaction [Line Items] | ||
Due to (from) affiliates | 100,000 | (800,000) |
Affiliated Entity | Subordinated Debt Facility | ||
Related Party Transaction [Line Items] | ||
Subordinated debt facility allows us to draw advances | $ 1,000,000 | |
Subordinated debt, interest rate on advances | 5.00% | |
NuDevco Retail Holdings and NuDevco Retail | ||
Related Party Transaction [Line Items] | ||
Distributions to affiliates | $ 3,600,000 | 3,800,000 |
NuDevco Retail Holdings and NuDevco Retail | Payment of Income Taxes Incurred by The Company | ||
Related Party Transaction [Line Items] | ||
Distributions to affiliates | $ 100,000 | $ 2,700,000 |
Segment Reporting - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Segment Reporting [Abstract] | ||
Asset optimization revenue | $ 27.3 | $ 25.7 |
Asset optimization cost of revenues | $ 28.2 | $ 25.8 |
Segment Reporting - Reconciliation of Retail Gross Margin to Income Before Income Tax Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Segment Reporting Information [Line Items] | ||
Income (loss) before income tax expense | $ 37,069 | $ (29,095) |
Interest and other income | (48) | (86) |
Interest expense | 1,307 | 1,311 |
Operating income | 38,328 | (27,870) |
Depreciation and amortization | 5,184 | 6,036 |
General and administrative | 14,935 | 12,671 |
Less: | ||
Net asset optimization expense | (904) | (140) |
Net, gain on non-trading derivative instruments | 45,063 | 7,024 |
Net, Cash settlements on non-trading derivative instruments | (13,136) | (1,185) |
Non-recurring event - Winter Storm Uri | 0 | (64,900) |
Retail Gross Margin | 28,755 | 50,012 |
Gain on non-trading derivatives, net | ||
Less: | ||
Net, gain on non-trading derivative instruments | 43,916 | 7,054 |
Net, Cash settlements on non-trading derivative instruments | $ (13,320) | $ (1,189) |
Customer Acquisitions (Details) customer in Thousands, $ in Millions |
1 Months Ended | 3 Months Ended | ||
---|---|---|---|---|
Jan. 31, 2022
USD ($)
customer
|
Jul. 31, 2021
kWh
|
May 31, 2021
USD ($)
kWh
|
Mar. 31, 2022
USD ($)
kWh
|
|
Residential Customer Equivalent | ||||
Asset Acquisition [Line Items] | ||||
Residential customer equivalents (kwh) | kWh | 50,000 | 45,000 | ||
Payments to acquire assets | $ 6.8 | |||
Escrow deposit | 2.4 | |||
Period of contingency | 5 years | |||
Residential Customer Equivalent | Customer Contracts | ||||
Asset Acquisition [Line Items] | ||||
Payments to acquire assets | 9.2 | |||
Residential Customer Equivalent | Starion Energy Inc. | ||||
Asset Acquisition [Line Items] | ||||
Residential customer equivalents (kwh) | kWh | 56,900 | |||
Payments to acquire assets | $ 11.5 | |||
Related holdbacks | 2.4 | |||
Reduction in residential customer equivalents | $ 2.2 | |||
Broker Contracts | ||||
Asset Acquisition [Line Items] | ||||
Number of customers | customer | 1 | |||
Asset acquisition, broker contract cash price | $ 0.4 |
Subsequent Events (Details) - Subsequent Event |
Apr. 21, 2022
$ / shares
|
---|---|
Common Class A | |
Subsequent Event [Line Items] | |
Dividends declaration per share of common stock (in dollars per share) | $ 0.18125 |
Series A Preferred Stock | |
Subsequent Event [Line Items] | |
Dividends declaration per share of preferred stock (in dollars per share) | $ 0.476393 |
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