Fair Value Measurements

12 Months Ended

Dec. 31, 2025

Fair Value Measurements

Fair Value Measurements

Note 5 Fair Value Measurements

Fair value is the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date (exit price). We utilize market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market-corroborated, or generally unobservable. We primarily apply the market approach for recurring fair value measurements and endeavor to utilize the best information available. Accordingly, we employ valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.

The use of unobservable inputs is intended to allow for fair value determinations in situations where there is little, if any, market activity for the asset or liability at the measurement date. We are able to classify fair value balances utilizing a fair value hierarchy based on the observability of those inputs.

Under the fair value hierarchy:

● Level 1 measurements include unadjusted quoted market prices for identical assets or liabilities in an active market;

● Level 2 measurements include quoted market prices for identical assets or liabilities in an active market that have been adjusted for items such as effects of restrictions for transferability and those that are not quoted but are observable through corroboration with observable market data, including quoted market prices for similar assets; and

● Level 3 measurements include those that are unobservable and of a subjective nature.

Recurring Fair Value Measurements

Our financial assets that are accounted for at fair value on a recurring basis as of December 31, 2025 and 2024 consisted of restricted cash held in trust and short-term investments. During 2025, there were no transfers of our financial assets between Level 1 and Level 2 measures. Our financial assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. As of December 31, 2025 and 2024, our restricted cash held in trust was carried at fair market value and totaled $0 and $331.8 million, respectively, and consisted of Level 1 measurements. As of December 31, 2025 and 2024, our short-term investments were primarily held at fair value and totaled $31 thousand and $7.6 million, respectively and primarily consisted of Level 2 measurements. No material Level 3 measurements existed for our financial assets for any of the periods presented.

Our financial liabilities that are accounted for at fair value on a recurring basis as of December 31, 2025 and 2024 consisted of warrants which are included in other short-term liabilities as of December 31, 2025 and other long-term liabilities as of December 31, 2024 in the accompanying consolidated financial statements. The warrants, as discussed in Note 11- Shareholders’ Equity, were carried at fair market value using their trading price and totaled $0.7 million and $9.0 million as of December 31, 2025 and 2024, respectively.

Nonrecurring Fair Value Measurements

We applied fair value measurements to our nonfinancial assets and liabilities measured on a nonrecurring basis, which consist of measurements primarily related to equity method investments, other long-lived assets and assets acquired and liabilities assumed in a business combination. Based upon our review of the fair value hierarchy, the inputs used in these fair value measurements generally include Level 3 inputs but could include Level 1 and 2 inputs.

During the years ended December 31, 2025 and 2024, approximately $7.5 million and $15.4 million was recognized as an other than temporary impairment related to our investment in Vast Renewables Limited (“Vast”), respectively. As Vast was a publicly traded company, the valuation assessment was based on the observable market trading price of Vast’s stock. The impairments have been included in Other, net in our consolidated statements of income (loss) for the years ended December 31, 2025 and 2024.

Fair Value of Debt Instruments

We estimate the fair value of our debt financial instruments in accordance with U.S. GAAP. The fair value of our long-term debt and revolving credit facilities is estimated based on quoted market prices or prices quoted from third-party financial institutions. The fair value of our debt instruments is determined using Level 2 measurements. The carrying and fair values of these liabilities were as follows:

		As of December 31,
		2025						2024
		Effective						Effective
		Interest		Carrying		Fair		Interest		Carrying		Fair
		Rate		Value		Value		Rate		Value		Value
	(In thousands)
7.375% senior priority guaranteed notes due May 2027		7.04	%	$	—	$	—	7.74	%	$	700,000	$	699,916
7.50% senior guaranteed notes due January 2028		7.82	%		379,146		379,491	7.70	%		389,609		362,823
1.75% senior exchangeable notes due June 2029		2.27	%		250,000		202,868	2.27	%		250,000		179,548
9.125% senior priority guaranteed notes due January 2030		9.40	%		650,000		683,293	9.40	%		650,000		661,401
8.875% senior guaranteed notes due August 2031		9.12	%		550,000		533,638	9.12	%		550,000		511,104
7.625% senior priority guaranteed notes due November 2032		7.88	%		700,000		687,890	—	%		—		—
				$	2,529,146	$	2,487,180			$	2,539,609	$	2,414,792
Less: current portion					377,492						—
Less: deferred financing costs					34,467						34,392
				$	2,117,187					$	2,505,217

The fair values of our cash equivalents, trade receivables and trade payables approximate their carrying values due to the short-term nature of these instruments.