Fair Value of Financial Instruments |
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Dec. 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value of Financial Instruments | NOTE 11—FAIR VALUE OF FINANCIAL INSTRUMENTS The Company’s assets and liabilities that are measured at fair value on a recurring basis include the following as of December 31, 2025 and 2024, set forth by level, within the fair value hierarchy:
Interest rate swap derivatives are classified as Level 2 financial instruments and are valued utilizing Secured Overnight Financing Rates. In addition, certain assets are measured at fair value on a non-recurring basis when an indicator of impairment is identified and the assets’ fair values are determined to be less than its carrying value. See Note 3 for additional information.
A summary of changes in the fair value of the Company’s Level 3 instrument, attributable to asset retirement obligations, for the years ended December 31, 2025, 2024 and 2023 is included in Note 9. The Company’s earn-out fair value liability at its Idaho agricultural digester site was determined by calculating the estimated present value of the future obligation. The present value was assessed quarterly and was based on macro-economic factors such as inflation and risk free US Treasury rates. Company specific estimates utilized included current and future interest rates, digester inlet gas flow and projected EBITDA. A weighted average probability approach was utilized for the variables discussed above. The undiscounted maximum payout of the earn-out ranged between 5% and 20% of EBITDA based on average inlet gas production ranging from 641 standard cubic feet per minute ("scfm") to greater than 944 scfm for each semiannual period in the remaining term, as defined in the underlying agreement. In December 2025, the Company settled the earnout obligation for $4,000. The earn-out was classified as a Level 3 financial instrument and changes in the balance are recorded in Accrued liabilities and Other liabilities within the Consolidated Balance Sheets and in Royalties, transportation, gathering and production fuel within the Consolidated Statements of Operations.
There were no transfer of assets or liabilities between Levels 1, 2 or 3 of the fair value hierarchy as of December 31, 2025 and 2024. |
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