v3.26.3
Derivative Instruments
 9 Months Ended
Sep. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
In the course of its business, Continuum enters into commitments associated with the purchase or sale of natural gas that meet the definition of a derivative. Continuum's retail natural gas contracts (primarily with large commercial and industrial customers) that meet the definition of a derivative are designated as normal purchases or normal sales arrangements and, as such, are excluded from the scope of ASC 815, Derivatives and Hedging. The retail contracts are accounted for as executory contracts and are recorded on an accrual basis. Revenues and expenses from retail contracts are recorded gross. Continuum's wholesale contracts (primarily with producers, municipalities and utility companies) are recorded as derivatives at fair value with changes in fair value recognized in earnings. Continuum's wholesale purchases and sales transactions are classified as trading activities for financial reporting purposes, with income and expenses, including unrealized gains and losses on derivative instruments, presented on a net basis in Costs associated with product sales on the Condensed Consolidated Statements of Income. The Company does not apply hedge accounting to any of its derivative instruments.

Continuum manages the price risk associated with its fixed-price commitments by either closely matching the offsetting physical purchase or sale of natural gas at fixed prices or through the use of NYMEX or ICE futures, swap, and option contracts to lock in margins. NYMEX and ICE positions are exchange-traded derivatives and are recorded at fair value with changes in fair value recognized in earnings in the current period. The cash impact of settled derivative instruments is presented in operating activities in the Condensed Consolidated Statements of Cash Flows.
The following table presents the notional quantities and maximum term for the Company's derivative instruments:
As of September 30, 2026
Notional (MMBtu millions)Maximum Term (Months)
Forward natural gas contracts193.761
NYMEX/ICE natural gas contracts:
          Natural gas futures47.439
          Natural gas options22.718
          Natural gas basis swaps18.213

The gains and losses on the Company's derivative instruments were as follows for the periods indicated (in millions):
For the Three Months Ended September 30,For the Nine Months Ended September 30,
Location of Gain (Loss)
Recorded in Income		2026202520262025
Forward natural gas contractsCosts associated with product sales$(10.2)$— $(12.1)$— 
NYMEX/ICE natural gas contractsCosts associated with product sales1.2 — 2.5 — 
     Total$(9.0)$— $(9.6)$— 

The fair values of the Company's derivative instruments were as follows as of September 30, 2026, prior to the impact of netting (in millions):
As of September 30, 2026
Derivative Assets
Derivative Liabilities
Balance Sheet Location
Fair Value
Balance Sheet Location
Fair Value
Forward natural gas contracts
Derivative assets$66.5 Other current liabilities$18.0 
Other assets: Other1.3 Other liabilities: Other6.7 
NYMEX/ICE natural gas contracts
Derivative assets11.4 Other current liabilities16.0 
Other assets: Other0.1 Other liabilities: Other2.1 
     Total$79.3 $42.8 

The Company had no derivative instruments as of December 31, 2025.

Note 5 contains information regarding the valuation of derivative instruments.

In connection with certain derivative instruments, the Company is required to provide collateral to its counterparties, which may take the form of parent guaranties, letters of credit or cash in margin accounts. As of September 30, 2026, the Company had $16.2 million in outstanding letters of credit under its revolving credit facility supporting its natural gas marketing activities. The Company had no outstanding letters of credit as of December 31, 2025.