v3.24.2
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Tables)
 9 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following tables summarize our financial assets and liabilities measured at fair value and indicate the level in the fair value hierarchy in which we classify the fair value measurement as of the dates indicated below:
June 30, 2024
(in thousands)Fair Value    Level 1    Level 2    Level 3
Assets
Short-term investments:
Corporate and municipal debt securities$37,218 $— $37,218 $— 
U.S. government and federal agency securities 48,870 48,870 — — 
Total86,088 48,870 37,218 — 
Long-term Investments:
Recurring fair value measurements:
Equity securities:
Non-qualified supplemental savings plan16,634 16,634 — — 
Investment in ADNOC Drilling178,235 178,235 — — 
Investment in Tamboran23,018 23,018 — — 
Debt securities:
Investment in Galileo36,751 — — 36,751 
Geothermal debt securities2,000 — — 2,000 
Other debt securities4,060 3,810 — 250 
Total260,698 221,697 — 39,001 
Nonrecurring fair value measurements1:
Other equity securities4,071 — — 4,071 
Total4,071 — — 4,071 
Total$264,769 $221,697 $— $43,072 
Liabilities
Contingent consideration$5,000 $— $— $5,000 
(1)As of June 30, 2024, our equity security investments in geothermal energy totaled $27.2 million and our debt security investments in held to maturity bonds totaled $0.3 million. None of these investments were marked to fair value during the period. The investments are measured at cost, less any impairments.
September 30, 2023
(in thousands)Fair Value    Level 1    Level 2    Level 3
Assets
Short-term investments:
Corporate debt securities$48,764 $— $48,764 $— 
U.S. government and federal agency securities44,836 44,836 — — 
Total93,600 44,836 48,764 — 
Long-term investments:
Recurring fair value measurements:
Equity securities:
Non-qualified supplemental savings plan14,597 14,597 — — 
Investment in ADNOC Drilling174,758 174,758 — — 
Investment in Tamboran9,920 9,920 — — 
Debt securities:
Investment in Galileo35,434 — — 35,434 
Geothermal debt securities2,006 — — 2,006 
Total236,715 199,275 — 37,440 
Nonrecurring fair value measurements1:
Other equity securities2
2,430 — — 2,430 
Total2,430 — — 2,430 
Total$239,145 $199,275 $— $39,870 
Liabilities
Contingent consideration$9,455 $— $— $9,455 
(1)As of September 30, 2023, our equity security investments in geothermal energy totaled $25.2 million. None of these investments were marked to fair value      during the period. The investments are measured at cost, less any impairments.
(2)As of September 30, 2023, our other equity securities subject to measurement at fair value on a nonrecurring basis totaled $3.0 million, of which $2.4 million has been marked to fair value. The remaining $0.6 million is measured at cost, less any impairments.
Schedule of Fair Value, Debt Security Measured on Recurring Basis, Unobservable Input Reconciliation
The following table provides quantitative information (in thousands) about our Level 3 unobservable significant inputs related to our debt security investment with Galileo at the dates included below:
June 30, 2024
Fair ValueValuation TechniqueUnobservable Inputs
$36,751 Black-Scholes-Merton modelDiscount rate20.8 %
Risk-free rate4.3 %
Equity volatility105.0 %
Schedule of Reconciliation of Long Term Debt Securities Available For Sale, Classified as Level 3 The following table reconciles changes in the fair value of our Level 3 assets for the periods presented below:
Three Months Ended
June 30,		Nine Months Ended
June 30,
(in thousands)2024202320242023
Assets at beginning of period$38,551 $35,140 $37,440 $33,565 
Purchases— 41 250 2,116 
Accrued interest450 2,001 1,316 2,001 
Transfers out— — — (500)
Reserves— — (5)— 
Assets at end of period$39,001 $37,182 $39,001 $37,182 
The following table reconciles changes in the balance of our equity securities, without readily determinable fair values, including investments that have been subsequently marked to fair value, for the periods presented below:
Three Months Ended
June 30,		Nine Months Ended
June 30,
(in millions)2024202320242023
Assets at beginning of period$30,152 $26,301 $28,232 $23,745 
Purchases1,105 — 3,641 2,556 
Disposals
— — (616)— 
Assets at end of period$31,257 $26,301 $31,257 $26,301 
Schedule of Reconciliation of Changes in Fair Value of Financial Liabilities Classified as Level 3 The following table reconciles changes in the fair value of our Level 3 liabilities for the periods presented below:
Three Months Ended
June 30,		Nine Months Ended
June 30,
(in thousands)2024202320242023
Liabilities at beginning of period$14,000 $5,030 $9,455 $4,022 
Additions— — — 500 
Total gains or losses:
Included in earnings1,000 4,050 6,670 5,808 
Settlements1
(10,000)(500)(11,125)(1,750)
Liabilities at end of period$5,000 $8,580 $5,000 $8,580 
(1)Settlements represent earnout payments that have been paid or earned during the period.
Schedule of Supplemental Fair Value Information about Long-Term Fixed-Rate Debt
The following information presents the supplemental fair value information for our long-term fixed-rate debt at June 30, 2024 and September 30, 2023:
(in millions)June 30, 2024    September 30, 2023
Long-term debt, net
Carrying value$545.6 $545.1 
Fair value454.5 435.5