Fair Value (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Schedule of Carrying Value and Estimated Fair Value of Financial Instruments

The following table sets forth the carrying value and estimated fair value of the Company’s financial instruments not reported at estimated fair value on the Condensed Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022 (dollars in thousands):

	March 31, 2023				December 31, 2022
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Long-term debt (Level 2)	$	1,113,500	$	1,024,858	$	1,113,500	$	966,881
Long-term debt (Level 3)		1,450,000		1,167,273		1,200,000		881,480
Snettisham finance lease obligation (Level 3)		44,921		41,800		45,730		41,700
Long-term debt to affiliated trusts (Level 3)		51,547		42,238		51,547		42,836

Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis

The following table discloses by level within the fair value hierarchy the Company’s assets and liabilities measured and reported on the Condensed Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022 at fair value on a recurring basis (dollars in thousands):

	Level 1		Level 2		Level 3		Counterparty and Cash Collateral Netting (1)			Total
March 31, 2023
Assets:
Energy commodity derivatives (2)	$	—	$	41,447	$	178	$	(40,716	)	$	909
Foreign currency exchange derivatives		—		45		—		—			45
Interest rate swap derivatives		—		2,455		—		—			2,455
Equity Investments		—		—		51,014		—			51,014
Deferred compensation assets:
Mutual Funds:
Fixed income securities (3)		1,231		—		—		—			1,231
Equity securities (3)		6,051		—		—		—			6,051
Total	$	7,282	$	43,947	$	51,192	$	(40,716	)	$	61,705
Liabilities:
Energy commodity derivatives (2)	$	—	$	115,124	$	11,240	$	(111,543	)	$	14,821
Interest rate swap derivatives		—		247		—		—			247
Total	$	—	$	115,371	$	11,240	$	(111,543	)	$	15,068
December 31, 2022
Assets:
Energy commodity derivatives (2)	$	—	$	146,232	$	288	$	(136,605	)	$	9,915
Foreign currency exchange derivatives		—		43		—		—			43
Interest rate swap derivatives		—		11,184		—		—			11,184
Equity Investments		—		—		54,284		—			54,284
Deferred compensation assets:
Mutual Funds:
Fixed income securities (3)		1,267		—		—		—			1,267
Equity securities (3)		6,132		—		—		—			6,132
Total	$	7,399	$	157,459	$	54,572	$	(136,605	)	$	82,825
Liabilities:
Energy commodity derivatives (2)	$	—	$	258,769	$	18,022	$	(242,044	)	$	34,747
Foreign currency exchange derivatives		—		3		—		—			3
Interest rate swap derivatives		—		52		—		—			52
Total	$	—	$	258,824	$	18,022	$	(242,044	)	$	34,802

(1)The Company is permitted to net derivative assets and derivative liabilities with the same counterparty when a legally enforceable master netting agreement exists. In addition, the Company nets derivative assets and derivative liabilities against any payables and receivables for cash collateral held or placed with these same counterparties.

(2)The Level 3 energy commodity derivative balances are associated with natural gas exchange agreements.

(3)Included in other property and investments-net and other non-current assets on the Condensed Consolidated Balance Sheets.

Schedule of Quantitative Information

The following table presents the quantitative information which was used to estimate the fair values of the Level 3 assets and liabilities above as of March 31, 2023 (dollars in thousands):

	Fair Value (Net) at			Valuation	Unobservable	Range and Weighted
	March 31, 2023			Technique	Input	Average Price
Natural gas exchange agreement	$	(11,062	)	Internally derived weighted average cost of gas	Forward purchase prices	$2.29 - $3.95/mmBTU $3.17 Weighted Average
					Forward sales prices	$2.95 - $9.48/mmBTU $7.18 Weighted Average
					Purchase volumes	130,000 - 321,500 mmBTUs
					Sales volumes	75,000 - 310,000 mmBTUs

	Fair Value at
	March 31, 2023		Valuation Technique	Unobservable Input	Range
Equity investments	$	51,014	Market approach	Comparable enterprise values	$130,000-$388,600 $246,000 Average
				Time to liquidity event	0 to 2 years
				Probability weighting	75%/25%
			Market approach	Issuance price per share	$4.42 to $5.52 $5.06 Average

Schedule of Activity for Natural Gas Exchange Agreement Derivative Assets (Liabilities) Measured At Fair Value Using Significant Unobservable Inputs (Level 3)

The following table presents activity for assets and liabilities measured at fair value using significant unobservable inputs (Level 3) for the three months ended March 31 (dollars in thousands):

	Natural Gas Exchange Agreement (1)			Equity Investments			Total
Three Months Ended March 31, 2023:
Balance as of January 1, 2023	$	(17,734	)	$	54,284		$	36,550
Total gains or (losses) (realized/unrealized):
Included in regulatory assets/liabilities		6,783			—			6,783
Recognized in net income		—			(2,637	)		(2,637	)
Purchases and debt conversions		—			2,367			2,367
Settlements		(111	)		—			(111	)
Other		—			(3,000	)		(3,000	)
Ending balance as of March 31, 2023	$	(11,062	)	$	51,014		$	39,952
Three Months Ended March 31, 2022:
Balance as of January 1, 2022	$	(7,771	)	$	—		$	(7,771	)
Total gains or (losses) (realized/unrealized):
Included in regulatory assets/liabilities		2,499			—			2,499
Settlements		(925	)		—			(925	)
Ending balance as of March 31, 2022	$	(6,197	)	$	—		$	(6,197	)

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