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Assets and Liabilities Measured at Fair Value
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Fair Value
Note O – Assets and Liabilities Measured at Fair Value
Fair Values – Recurring
The Company carries certain assets and liabilities at fair value in its Consolidated Balance Sheets. The fair value hierarchy is based on the quality of inputs used to measure fair value, with Level 1 being the highest quality and Level 3 being the lowest quality. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are observable inputs other than quoted prices included within Level 1. Level 3 inputs are unobservable inputs which reflect assumptions about pricing by market participants.
The fair value measurements for these assets and liabilities for the respective periods presented are shown in the following table.
December 31, 2025December 31, 2024
(Thousands of dollars)
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Liabilities:
Nonqualified employee savings plan$22,205 $— $— $22,205 $19,469 $— $— $19,469 
Commodity swaps— — — — — 1,707 — 1,707 
$22,205 $— $— $22,205 $19,469 $1,707 $— $21,176 
The nonqualified employee savings plan is an unfunded savings plan through which participants seek a return via phantom investments in equity securities and/or mutual funds. The fair value of this liability was based on quoted prices for these equity securities and mutual funds. The income effect of changes in the fair value of the nonqualified employee savings plan is recorded in “Selling and general expenses” in the Consolidated Statements of Operations.
As of December 31, 2025, there were no outstanding commodity (NYMEX Henry Hub natural gas) swaps subject to fair value measurement. The liabilities associated with these contacts have been finalized as of December 31, 2025 and were based on realized NYMEX Henry Hub pricing. The commodity swaps liability as of December 31, 2024 was $1.7 million and recorded as “Accounts payable” in the Consolidated Balance Sheets. The fair value of
the commodity swaps was based on active market quotes for NYMEX Henry Hub natural gas. The before tax income effect of changes in fair value of natural gas derivative contracts was recorded in “Gain (loss) on derivative instruments” in the Consolidated Statements of Operations.
The Company was previously exposed to contingent consideration payments related to a prior asset purchase agreement, which required additional payments contingent on specified revenue thresholds and project milestones being met. At December 31, 2022, the Company’s liabilities were finalized and no longer subject to fair value measurement. Final cash payment was made in 2023 and was recorded to “Contingent consideration payment“ in the Consolidated Statements of Cash Flows.
The Company offsets certain assets and liabilities related to derivative contracts when the legal right of offset exists. There were no offsetting positions recorded at December 31, 2025 and 2024.
The following table presents the carrying amounts and estimated fair values of financial instruments held by the Company at December 31, 2025 and 2024. 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, was minimal.
December 31,
20252024
(Thousands of dollars)
Carrying
Amount		Fair
Value		Carrying
Amount		Fair
Value
Financial liabilities:    
Current and long-term debt$1,385,080 $1,326,101 $1,275,374 $1,185,961 
Fair Values – Nonrecurring
Impairment expenses of $115.0 million and $62.9 million were incurred in 2025 and 2024, respectively. In 2025, an impairment charge of $115.0 million ($92.0 million excluding NCI) was recorded for the Dalmatian field, in the Gulf of America, as certain projects in the field were less competitive for capital allocation. In 2024, an impairment charge of $34.5 million was recorded for the Calliope field and an impairment charge of $28.4 million was recorded for the Nearly Headless Nick field, in the Gulf of America. Both impairment charges were due to operational issues that led to reserve reductions.
The fair values were determined by internal discounted cash flow models using estimates of future production, prices, costs and discount rates believed to be consistent with those used by principal market participants in the applicable region.
The fair value information associated with the impaired properties is presented in the following tables.
Year Ended December 31, 2025
Net Book
Value
Prior to
Impairment		Total
Pretax
Impairment
Fair Value
(Thousands of dollars)
Level 1Level 2Level 3
Assets:
Impaired proved properties
United States - Offshore
$— $— $42,397 $157,399 $115,002 
Year Ended December 31, 2024
Net Book
Value
Prior to
Impairment		Total
Pretax
Impairment
Fair Value
(Thousands of dollars)
Level 1Level 2Level 3
Assets:
Impaired proved properties
United States - Offshore
$— $— $501 $63,410 $62,909