Derivative Activities

3 Months Ended

Mar. 31, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

(7) DERIVATIVE ACTIVITIES

The following table sets forth our commodity-based derivative volumes by year as of March 31, 2025, excluding our basis swaps which are discussed separately below. All fair values presented in the table below utilize Level 2 inputs, except where noted. All fair market values ("FMV") presented in thousands:


Period	Contract Type	Volume Hedged		Weighted Average Hedge Price								FMV
			Swap			Sold Put		Floor		Ceiling
Natural Gas (a)
April - December 2025	Swaps	400,000 Mmbtu/day	$		4.12							$	(38,855	)
April - December 2025	Three-way Collars	125,964 Mmbtu/day				$	2.53	$	3.25	$	4.64	$	(6,585	)
2026	Swaps	250,000 Mmbtu/day	$		4.05							$	(32,537	)
2026	Three-way Collars	40,000 Mmbtu/day	$				3.00	$	4.00	$	5.20	$	(2,640	)
2027	Swaps	50,000 Mmbtu/day	$		4.06							$	3,107

Oil
April 2025	Collars	4,000 bbls/day						$	70.00	$	81.00	$	88

NGLs (C3-Propane)
April - May 2025	Swaps	6,459 bbls/day	$		35.95							$	(551	)

(a)

We also sold natural gas swaptions of 150,000 Mmbtu/day for calendar year 2026 at a weighted average price of $4.00/Mmbtu that expire through August 2025 and 30,000 Mmbtu/day for calendar year 2027 at a weighted average price of $4.00/Mmbtu that expire in November 2025. The fair value of these contracts as of March 31, 2025, which utilizes Level 3 inputs, was a derivative liability of $30.3 million.

Basis Swap Contracts

In addition to the commodity derivatives described above, at March 31, 2025, we had natural gas basis swap contracts which lock in the differential between NYMEX Henry Hub and certain of our physical pricing indices. These contracts settle through December 2028 and include a total volume of 216,867,500 Mmbtu. The fair value of these contracts was a gain of $11.7 million at March 31, 2025.

Derivative Assets and Liabilities

The combined fair value of derivatives included in the accompanying consolidated balance sheets as of March 31, 2025 and December 31, 2024 is summarized below. The assets and liabilities are netted where derivatives with both gain and loss positions are held by a single counterparty and we have master netting arrangements. The tables below provide additional information relating to our master netting arrangements with our derivative counterparties (in thousands):


	March 31, 2025			December 31, 2024
Derivative assets:
Gross amounts of recognized assets	$	21,734		$	112,359
Gross amounts offset in the consolidated balance sheets		(15,264	)		(25,261	)
Net amounts of assets presented in the consolidated balance sheets	$	6,470		$	87,098


	March 31, 2025			December 31, 2024
Derivative (liabilities):
Gross amounts of recognized (liabilities)	$	(118,287	)	$	(45,383	)
Gross amounts offset in the consolidated balance sheets		15,264			25,261
Net amounts of (liabilities) presented in the consolidated balance sheets	$	(103,023	)	$	(20,122	)

Derivative Fair Value (Loss) Income

The effects of our derivatives on our consolidated statements of income are summarized below (in thousands):


	Three Months Ended March 31,
	2025			2024
Natural gas derivatives	$	(158,337	)	$	60,116
NGLs derivatives		(963	)		(2,402	)
Oil derivatives		343			(11,116	)
Total derivative fair value (loss) income	$	(158,957	)	$	46,598