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Derivative Instruments | 12 Months Ended
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Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments | Derivative Instruments As of December 31, 2024, the Company had the following outstanding financial commodity derivatives:
|  | 2025 |  | 2026 |  |  |  |
Oil |  | First Quarter |  | Second Quarter |  | Third Quarter |  | Fourth Quarter |  | First Quarter |  | Second Quarter |  | Third Quarter |  | Fourth Quarter |  |  |  |
WTI oil collars |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Volume (MBbl) |  | 5,040 |  |  | 5,096 |  |  | 4,232 |  |  | 4,232 |  |  | 900 |  |  | 910 |  |  | 920 |  |  | 920 |  |  |  |  |
Weighted average floor ($/Bbl) |  | $ | 61.79 |  |  | $ | 61.79 |  |  | $ | 61.63 |  |  | $ | 61.63 |  |  | $ | 62.50 |  |  | $ | 62.50 |  |  | $ | 62.50 |  |  | $ | 62.50 |  |  |  |  |
Weighted average ceiling ($/Bbl) |  | $ | 79.36 |  |  | $ | 79.36 |  |  | $ | 78.64 |  |  | $ | 78.64 |  |  | $ | 69.40 |  |  | $ | 69.40 |  |  | $ | 69.40 |  |  | $ | 69.40 |  |  |  |  |
WTI oil swaps |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Volume (MBbl) |  | 1,710 |  | 1,729 |  | 1,748 |  | 1,748 |  | 900 |  | 910 |  | 920 |  | 920 |  |  |  |
Weighted average price ($/Bbl) |  | $ | 69.18 |  |  | $ | 69.18 |  |  | $ | 69.18 |  |  | $ | 69.18 |  |  | $ | 66.14 |  |  | $ | 66.14 |  |  | $ | 66.14 |  |  | $ | 66.14 |  |  |  |  |
WTI Midland oil basis swaps |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Volume (MBbl) |  | 6,300 |  | 6,370 |  | 5,520 |  | 5,520 |  | 1,800 |  | 1,820 |  | 1,840 |  | 1,840 |  |  |  |
Weighted average differential ($/Bbl) |  | $ | 1.07 |  |  | $ | 1.07 |  |  | $ | 1.02 |  |  | $ | 1.02 |  |  | $ | 0.95 |  |  | $ | 0.95 |  |  | $ | 0.95 |  |  | $ | 0.95 |  |  |  |  |
|  | 2025 |  | 2026 |  |  |  |
Natural Gas |  | First Quarter |  | Second Quarter |  | Third Quarter |  | Fourth Quarter |  | First Quarter |  |  |  |
NYMEX gas collars |  |  |  |  |  |  |  |  |  |  |  |  |  |
Volume (MMBtu) |  | 45,000,000 |  |  | 45,500,000 |  |  | 46,000,000 |  |  | 46,000,000 |  |  | 27,000,000 |  |  |  |  |
Weighted average floor ($/MMBtu) |  | $ | 2.85 |  |  | $ | 2.85 |  |  | $ | 2.85 |  |  | $ | 2.85 |  |  | $ | 2.75 |  |  |  |  |
Weighted average ceiling ($/MMBtu) |  | $ | 4.51 |  |  | $ | 4.07 |  |  | $ | 4.07 |  |  | $ | 5.55 |  |  | $ | 7.66 |  |  |  |  |
Transco Leidy gas basis swaps |  |  |  |  |  |  |  |  |  |  |  |  |  |
Volume (MMBtu) |  | 18,000,000 |  |  | 18,200,000 |  |  | 18,400,000 |  |  | 18,400,000 |  |  | — |  |  |  |  |
Weighted average differential ($/MMBtu) |  | $ | (0.70) |  |  | $ | (0.70) |  |  | $ | (0.70) |  |  | $ | (0.70) |  |  | $ | — |  |  |  |  |
Transco Zone 6 Non-NY gas basis swaps |  |  |  |  |  |  |  |  |  |  |  |  |  |
Volume (MMBtu) |  | 9,000,000 |  |  | 9,100,000 |  |  | 9,200,000 |  |  | 9,200,000 |  |  | — |  |  |  |  |
Weighted average differential ($/MMBtu) |  | $ | (0.29) |  |  | $ | (0.29) |  |  | $ | (0.29) |  |  | $ | (0.29) |  |  | $ | — |  |  |  |  |
In January 2025, the Company entered into the following financial commodity derivatives:
|  | 2025 |  | 2026
Natural Gas |  | First Quarter |  | Second Quarter |  | Third Quarter |  | Fourth Quarter |  | First Quarter |  | Second Quarter |  | Third Quarter |  | Fourth Quarter
NYMEX gas collars |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Volume (MMBtu) |  | 5,900,000 |  | 9,100,000 |  | 9,200,000 |  | 9,200,000 |  | 22,500,000 |  | 22,750,000 |  | 23,000,000 |  | 23,000,000
Weighted average floor ($/MMBtu) |  | $ | 3.00 |  |  | $ | 3.00 |  |  | $ | 3.00 |  |  | $ | 3.00 |  |  | $ | 3.00 |  |  | $ | 3.00 |  |  | $ | 3.00 |  |  | $ | 3.00 |
Weighted average ceiling ($/MMBtu) |  | $ | 4.46 |  |  | $ | 4.46 |  |  | $ | 4.46 |  |  | $ | 4.46 |  |  | $ | 5.79 |  |  | $ | 5.79 |  |  | $ | 5.79 |  |  | $ | 5.79 |
Effect of Derivative Instruments on the Consolidated Balance Sheet
|  |  |  | Fair Values of Derivative Instruments
|  |  |  | Derivative Assets |  | Derivative Liabilities
|  |  |  | December 31, |  | December 31,
(In millions) |  | Balance Sheet Location |  | 2024 |  | 2023 |  | 2024 |  | 2023
Commodity contracts |  | Other current assets |  | $ | 12 |  |  | $ | 85 |  |  | $ | — |  |  | $ | — |
Commodity contracts |  | Accrued liabilities |  | — |  |  | — |  |  | 17 |  |  | — |
Commodity contracts |  | Other assets |  | — |  |  | 7 |  |  | — |  |  | — |
Commodity contracts |  | Other liabilities |  | — |  |  | — |  |  | 4 |  |  | — |
|  |  |  | $ | 12 |  |  | $ | 92 |  |  | $ | 21 |  |  | $ | — |
Offsetting of Derivative Assets and Liabilities in the Consolidated Balance Sheet
|  | December 31,
(In millions) |  | 2024 |  | 2023
Derivative assets |  |  |  |
Gross amounts of recognized assets |  | $ | 26 |  |  | $ | 93 |
Gross amounts offset in the consolidated balance sheet |  | (14) |  |  | (1) |
Net amounts of assets presented in the consolidated balance sheet |  | 12 |  |  | 92 |
Gross amounts of financial instruments not offset in the consolidated balance sheet |  | — |  |  | 1 |
Net amount |  | $ | 12 |  |  | $ | 93 |
Derivative liabilities |  |  |  |
Gross amounts of recognized liabilities |  | $ | 35 |  |  | $ | 1 |
Gross amounts offset in the consolidated balance sheet |  | (14) |  |  | (1) |
Net amounts of liabilities presented in the consolidated balance sheet |  | 21 |  |  | — |
Gross amounts of financial instruments not offset in the consolidated balance sheet |  | — |  |  | — |
Net amount |  | $ | 21 |  |  | $ | — |
Effect of Derivative Instruments on the Consolidated Statement of Operations
|  | Year Ended December 31,
(In millions) |  | 2024 |  | 2023 |  | 2022
Cash received (paid) on settlement of derivative instruments |  |  |  |  |  |
Gas contracts |  | $ | 96 |  |  | $ | 280 |  |  | $ | (438) |
Oil contracts |  | 2 |  |  | 4 |  |  | (324) |
Non-cash gain (loss) on derivative instruments |  |  |  |  |  |
Gas contracts |  | (80) |  |  | (72) |  |  | 149 |
Oil contracts |  | (21) |  |  | 18 |  |  | 150 |
|  | $ | (3) |  |  | $ | 230 |  |  | $ | (463) |
Additional Disclosures about Derivative Instruments The use of derivative instruments involves the risk that the counterparties will be unable to meet their obligations under the agreements. The Company’s counterparties are primarily commercial banks and financial service institutions that management believes present minimal credit risk and its derivative contracts are with multiple counterparties to minimize its exposure to any individual counterparty. The Company performs both quantitative and qualitative assessments of these counterparties based on their credit ratings and credit default swap rates where applicable. Certain counterparties to the Company’s derivative instruments are also lenders under its revolving credit agreement and term loan. The Company’s revolving credit agreement, term loan and derivative instruments contain certain cross default and acceleration provisions that may require immediate payment of the Company’s liabilities thereunder if the Company defaults on other material indebtedness. The Company also has netting arrangements with each of its counterparties that allow it to offset assets and liabilities from separate derivative contracts with that counterparty.

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- Definition 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. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/815/tableOfContent + Details
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