Quarterly report pursuant to Section 13 or 15(d)

Fair Value of Financial Instruments (Tables)

v3.23.3
Fair Value of Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis

Our assets and liabilities measured at fair value on a recurring basis consist of the following:

 

 

Fair Value Measurements Using

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

As of September 30, 2023:

 

 

 

 

 

 

 

 

 

Assets — Investment in BPC

 

$

—

 

 

$

—

 

 

$

37.8

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

Earnout payment

 

$

—

 

 

$

—

 

 

$

0.0

 

Munger make-whole provision

 

 

—

 

 

 

—

 

 

 

8.8

 

Warrants

 

 

0.1

 

 

 

—

 

 

 

—

 

Total

 

$

0.1

 

 

$

—

 

 

$

8.8

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2022:

 

 

 

 

 

 

 

 

 

Assets — Investment in BPC

 

$

—

 

 

$

—

 

 

$

53.6

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

Earnout payment

 

$

—

 

 

$

—

 

 

$

6.6

 

Munger make-whole provision

 

 

—

 

 

 

—

 

 

 

0.4

 

Warrants

 

 

1.1

 

 

 

—

 

 

 

—

 

Total

 

$

1.1

 

 

$

—

 

 

$

7.0

 
Reconciliation of Recurring Level 3 Fair Value Measurements

The following is a reconciliation of our recurring Level 3 fair value measurements:

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Balance at beginning of period

 

$

34.1

 

 

$

49.7

 

 

$

46.6

 

 

$

—

 

Acquisition of Flotek convertible notes

 

 

—

 

 

 

—

 

 

 

—

 

 

 

20.0

 

Acquisition of investment in BPC

 

 

—

 

 

 

—

 

 

 

—

 

 

 

47.2

 

Transfer of Investment in BPC to Level 3 fair value measurement

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4.2

 

Elimination of Flotek convertible notes at acquisition date

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(30.2

)

Change in fair value of Level 3 fair value measurements

 

 

(5.1

)

 

 

—

 

 

 

(17.6

)

 

 

8.5

 

Balance at end of period

 

$

29.0

 

 

$

49.7

 

 

$

29.0

 

 

$

49.7

 
Summary of Carrying Amounts and Fair Value of Financial Instruments

The carrying amounts of our term loan facility and ABL credit facility approximate fair value due to the variable interest rate. The fair value of our fixed rate debt, which includes the Monarch note, the REV note and the Equify note was as follows:

 

 

September 30,
2023

 

 

December 31,
2022

 

Carrying amount of fixed rate debt

 

$

97.2

 

 

$

142.7

 

Fair value of fixed rate debt

 

$

99.5

 

 

$

142.5