Fair Value

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value

12. Fair Value

Recurring Fair Value Measurements

Financial assets and liabilities reported at fair value on a recurring basis primarily include energy commodity derivatives, interest rate derivatives, and investments held within the NDT.

The classifications of recurring fair value measurements within the fair value hierarchy were:

	Successor
	June 30, 2024										December 31, 2023
	Level 1		Level 2		NAV		Netting (a)		Total		Level 1		Level 2		NAV		Netting (a)		Total
Assets
Cash equivalents	$	—	$	—	$	13	$	—	$	13	$	—	$	—	$	9	$	—	$	9
Equity securities (b)	718		—		360		—		1,078		629		—		384		—		1,013
U.S. Government debt securities	336		—		—		—		336		337		—		—		—		337
Municipal debt securities	—		83		—		—		83		—		86		—		—		86
Corporate debt securities	—		179		—		—		179		—		156		—		—		156
Receivables (payables), net (c)	—		—		—		—		(30)		—		—		—		—		(26)
NDT funds	1,054		262		373		—		1,659		966		242		393		—		1,575
Commodity derivatives	167		116		—		(246)		37		98		196		—		(200)		94
Interest rate derivatives	—		3		—		—		3		—		1		—		—		1
Total assets	$	1,221	$	381	$	373	$	(246)	$	1,699	$	1,064	$	439	$	393	$	(200)	$	1,670
Liabilities
Commodity derivatives	190		142		—		(268)		64		155		139		—		(257)		37
Interest rate derivatives	—		—		—		—		—		—		6		—		—		6
Less: other	—		—		—		—		—		—		—		—		—		—
Total liabilities	$	190	$	142	$	—	$	(268)	$	64	$	155	$	145	$	—	$	(257)	$	43

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(a)Amounts represent netting pursuant to master netting arrangements and cash collateral held or placed with the same counterparty.

(b)Includes commingled equity and fixed income funds and real estate investment trusts.

(c)Represents: (i) interest and dividends earned but not received; and (ii) net sold or purchased investments, but not settled.

There were no recurring fair value measurements classified as Level 3 as of June 30, 2024 (Successor) and December 31, 2023 (Successor).

Nonrecurring Fair Value Measurements

There were no nonrecurring fair value measurements related to impairments of long-lived assets during the six months ended June 30, 2024 (Successor). See Note 8 for information on the nonrecurring fair value measurement of Brandon Shores during the period from January 1 through May 17, 2023 (Predecessor).

Reported Fair Value

The carrying value of certain financial assets and liabilities on the Consolidated Balance Sheets, including “Cash and cash equivalents,” “Restricted cash and cash equivalents,” “Accounts receivable, net,” and “Accounts payable and other accrued liabilities” approximate fair value.

The fair value measurements of indebtedness are classified as Level 2 within the fair value hierarchy. The fair value of fixed rate debt was estimated primarily by utilizing an income approach whereby the future cash flows of the obligations are discounted at the estimated current cost of funding rates, which incorporates the credit risk associated with the obligations. The carrying value of variable rate indebtedness approximates fair value.

The carrying value and fair value of indebtedness presented on the Consolidated Balance Sheets were:

	Successor
	June 30, 2024				December 31, 2023
	Carrying Value		Fair Value		Carrying Value		Fair Value
Long-term debt (a)	$	2,626	$	2,662	$	2,820	$	2,934
Other short-term indebtedness (b)	—		—		6		6

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(a)Aggregate value of “Long-term debt” and “Long-term debt, due within one year” presented on the Consolidated Balance Sheets.

(b)Presented as “Other current liabilities” on the Consolidated Balance Sheets.