Investment in Derivative Instruments
|3 Months Ended|
Dec. 31, 2020
|Derivative Instruments and Hedging Activities Disclosure [Abstract]|
|Investment in Derivative Instruments||Investment in Derivative Instruments
The Company’s operations expose it to a variety of market risks, including the effects of changes in commodity prices and changes in interest rates. As part of its risk management process, the Company began entering into commodity swap transactions through regulated commodity exchanges in February 2020. To manage interest rate exposure, the Company has entered into derivative instruments using interest rate swaps. The objective of entering into interest rate swaps is to eliminate the variability of cash
flows associated with movements in interest rates over the life of the loans. At December 31, 2020, the aggregate notional value of these interest rate swap agreements was $44.5 million.
The following tables represent the approximate amount of realized and unrealized gains (losses) recognized in earnings on commodity derivative contracts and interest rate swap agreements for the three months ended December 31, 2020 and 2019 and the fair value of these derivatives as of December 31, 2020 and September 30, 2020 (in thousands):
The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef