Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2026

Reconciliation of the Beginning and Ending Balances for Derivative Instruments Classified as Level 3 in the Fair Value Hierarchy

The following is a reconciliation of the beginning and ending balances for derivative instruments classified as Level 3 in the fair value hierarchy (in thousands):


	Six Months Ended June 30, 2026
Balance as of December 31, 2025	$	(603	)
Additions		225
Settlements		603
Balance as of June 30, 2026	$	225

Carrying Amounts and Fair Values of Financial Instruments

The following presents the carrying amounts and the fair values and hierarchy of our financial instruments as of June 30, 2026 and December 31, 2025 (in thousands):


	June 30, 2026						December 31, 2025
	Carrying Value			Fair Value			Carrying Value			Fair Value
Assets:
Commodity derivatives (a)	$	123,343		$	123,343		$	69,397		$	69,397
Marketable securities (b)		69,218			69,218			65,436			65,436
(Liabilities):
Commodity derivatives (a)		(3,387	)		(3,387	)		(3,559	)		(3,559	)
Bank credit facility (c)		(381,000	)		(381,000	)		(118,000	)		(118,000	)
8.25% senior notes due 2029 (c)		—			—			(600,000	)		(609,186	)
4.75% senior notes due 2030 (c)		(500,000	)		(488,255	)		(500,000	)		(493,895	)
Deferred compensation plan (d)		(76,102	)		(76,102	)		(74,410	)		(74,410	)

(a)

Fair values for commodity derivatives utilize Level 2 inputs with the exception of swaptions and propane collars, which utilize Level 3 inputs. Fair value of swaption contracts as of June 30, 2026 was a derivative liability of $657,000 and the fair value of propane collars as of June 30, 2026 was a derivative asset of $882,000.

(b)

Marketable securities, which are held in our deferred compensation plans, are actively traded on major exchanges, which is a Level 1 input.

(c)

The book value of our bank debt approximates fair value because of its floating rate structure. The fair value of our senior notes is based on end of period market quotes which are Level 2 inputs. Debt is presented on the balance sheet at carrying value.

(d)

The fair value of our deferred compensation plan is updated to the closing price of the marketable securities held in the plan on the balance sheet date, which is a Level 1 input.