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9. Fair Value Measurements
Fair Value of Financial Assets and Liabilities
The Partnership’s financial assets and liabilities consist of cash and cash equivalents, accounts receivables, a contract receivable, accounts payables and debt. The carrying amounts reported on the Consolidated Balance Sheets for cash and cash equivalents, accounts receivables and accounts payables approximate fair value due to their short-term nature. The Partnership uses available market data and valuation methodologies to estimate the fair value of its contract receivable and debt.
The following table shows the carrying value and estimated fair value of the Partnership's contract receivable and debt:
| | | | | | | March 31, 2026 | | | December 31, 2025 | |
| | | Fair Value | | | Carrying | | | Estimated | | | Carrying | | | Estimated | |
| (In thousands) | | Hierarchy Level | | | Value | | | Fair Value | | | Value | | | Fair Value | |
| Assets: | | | | | | | | | | | | | | | | | | | | |
| Contract receivable, net (current and long-term) (1) | | | 3 | | | $ | 22,734 | | | $ | 20,233 | | | $ | 23,480 | | | $ | 20,792 | |
| | | | | | | | | | | | | | | | | | | | | |
| Debt: | | | | | | | | | | | | | | | | | | | | |
| Opco Senior Notes (2) | | | 3 | | | $ | 14,234 | | | $ | 14,025 | | | $ | 14,198 | | | $ | 14,018 | |
| Opco Credit Facility (3) | | | 3 | | | | 46,084 | | | | 46,084 | | | | 18,884 | | | | 18,884 | |
| (1) | The fair value of the Partnership's contract receivable is determined based on the present value of future cash flow projections related to the underlying asset at a discount rate of 15% at March 31, 2026 and December 31, 2025. |
| (2) | The fair value of the Opco Senior Notes was estimated by management utilizing the present value replacement method incorporating the interest rate of the Opco Credit Facility. |
| (3) | The fair value of the Opco Credit Facility approximates the outstanding borrowing amount because the interest rates are variable and reflective of market rates and the terms of the credit facility allow the Partnership to repay the debt at any time without penalty. |
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