Financial Instruments and Risk Management (Tables)

9 Months Ended

Sep. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Volumes Per Day Associated with Outstanding Natural Gas Derivative Contracts and the Weighted Average Prices for these Contracts

At September 30, 2024, volumes per day associated with outstanding natural gas derivative contracts and the weighted average prices for these contracts are as follows:

	2025
NYMEX HENRY HUB swap contracts:
Volumes (MMCF/d):	20
Price per MCF:	$	3.20

Fair Value of Derivative Instruments Not Designated as Hedging Instruments

At September 30, 2024 and December 31, 2023, the fair value of derivative instruments not designated as hedging instruments are presented in the following table:

(Thousands of dollars)	Asset (Liability) Derivatives Fair Value
Type of Derivative Contract	Balance Sheet Location	September 30, 2024		December 31, 2023
Commodity swaps	Accounts payable	$	(1,344)	$	–

Recognized Gains and Losses for Derivative Instruments Not Designated as Hedging Instruments

For the three-month and nine-month periods ended September 30, 2024 and 2023, the gains and losses recognized in the Consolidated Statements of Operations for derivative instruments not designated as hedging instruments are presented in the following table:

		Gain (Loss)				Gain (Loss)
(Thousands of dollars)		Three Months Ended September 30,				Nine Months Ended September 30,
Type of Derivative Contract	Statement of Operations Location	2024		2023		2024		2023
Commodity swaps	(Loss) on derivative instruments	$	(1,344)	$	–	$	(1,344)	$	–

Carrying Value of Assets and Liabilities Recorded at Fair Value on Recurring Basis

The fair value measurements for these assets and liabilities at September 30, 2024 and December 31, 2023, are shown in the following table:

	September 30, 2024								December 31, 2023
(Thousands of dollars)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Liabilities:
Commodity swaps	$	–	$	1,344	$	–	$	1,344	$	–	$	–	$	–	$	–
Nonqualified employee savings plan	19,225		–		–		19,225		17,785		–		–		17,785
	$	19,225	$	1,344	$	–	$	20,569	$	17,785	$	–	$	–	$	17,785

Carrying Amounts and Estimated Fair Values of Financial Instruments

The following table presents the carrying amounts and estimated fair values of financial instruments held by the Company at September 30, 2024 and December 31, 2023. The fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties. The table excludes cash and cash equivalents, trade accounts receivable, trade accounts payable and accrued expenses, all of which had fair values approximating carrying amounts. The fair value of current and long-term debt was estimated based on rates offered to the Company at that time for debt of the same maturities. Substantially all of the Company’s long-term debt is actively traded in open markets, and accordingly, is classified as Level 1 in the fair value hierarchy. The Company has off-balance sheet exposures relating to certain letters of credit. The fair value of these, which represents fees associated with obtaining the instruments, were minimal.

	September 30,				December 31,
	2024				2023
(Thousands of dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial liabilities:
Current and long-term debt	$	1,280,072	$	1,288,682	$	1,329,075	$	1,265,185