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Derivative Activities | 6 Months Ended
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Jun. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Activities | (7) DERIVATIVE ACTIVITIES The following table sets forth our commodity-based derivative volumes by year as of June 30, 2025, excluding our basis swaps and propane 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") are presented in thousands:
Period |  | Contract Type |  | Volume Hedged |  |  | Weighted Average Hedge Price |  |  | FMV |
|  |  |  |  |  | Swap |  |  | Sold Put |  |  | Floor |  |  | Ceiling |  |  |  |
Natural Gas (a) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
July - December 2025 |  | Swaps |  | 400,000 Mmbtu/day |  | $ |  | 4.12 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 28,817 |
July - December 2025 |  | Three-way Collars |  | 191,793 Mmbtu/day |  |  |  |  |  | $ |  | 2.98 |  |  | $ |  | 3.96 |  |  | $ |  | 5.02 |  |  | $ | 12,818 |
2026 |  | Swaps |  | 265,000 Mmbtu/day |  | $ |  | 4.05 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | (18,949 | )
2026 |  | Three-way Collars |  | 125,000 Mmbtu/day |  | $ |  |  |  |  |  | 3.00 |  |  | $ |  | 4.00 |  |  | $ |  | 5.70 |  |  | $ | 2,548 |
2027 |  | Swaps |  | 200,000 Mmbtu/day |  | $ |  | 4.04 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 4,112 |
Oil |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
July - September 2025 |  | Swaps |  | 2,000 bbls/day |  | $ |  | 73.71 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 1,839 |
(a) We also sold natural gas swaptions of 135,000 Mmbtu/day for calendar year 2026 at a weighted average price of $4.00/Mmbtu that expire through August 2025 and 150,000 Mmbtu/day for calendar year 2027 at a weighted average price of $4.03/Mmbtu that expire in November 2025. The fair value of these contracts as of June 30, 2025, which utilizes Level 3 inputs, was a derivative liability of $25.6 million. Basis Swap Contracts In addition to the commodity derivatives described above, at June 30, 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 thr ough December 2029 and include a total volume of 171,840,000 Mmbtu. The fair value of these contracts was a gain of $19.9 million at June 30, 2025. Propane Percentage of WTI Swaps We also had propane swap contracts totaling 11,000 bbls per day which lock in a fixed percentage of the WTI crude price. The fair value of these contracts, which settle in third quarter 2025, was a gain of $1.2 million. Derivative Assets and Liabilities The combined fair value of derivatives included in the accompanying consolidated balance sheets as of June 30, 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):
| June 30, 2025 |  |  | December 31, 2024 |
Derivative assets: |  |  |  |  |
Gross amounts of recognized assets | $ | 77,244 |  |  | $ | 112,359 |
Gross amounts offset in the consolidated balance sheets |  | (26,129 | ) |  |  | (25,261 | )
Net amounts of assets presented in the consolidated balance sheets | $ | 51,115 |  |  | $ | 87,098 |
| June 30, 2025 |  |  | December 31, 2024 |
Derivative (liabilities): |  |  |  |  |
Gross amounts of recognized (liabilities) | $ | (50,517 | ) |  | $ | (45,383 | )
Gross amounts offset in the consolidated balance sheets |  | 26,129 |  |  |  | 25,261 |
Net amounts of (liabilities) presented in the consolidated balance sheets | $ | (24,388 | ) |  | $ | (20,122 | )
Derivative Fair Value Income (Loss) The effects of our derivatives on our consolidated statements of income are summarized below (in thousands):
| Three Months Ended June 30, |  |  | Six Months Ended June 30, |
| 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Natural gas derivatives | $ | 148,863 |  |  | $ | 13,176 |  |  | $ | (9,474 | ) |  | $ | 73,292 |
NGLs derivatives |  | 3,289 |  |  |  | 1,687 |  |  |  | 2,325 |  |  |  | (715 | )
Oil derivatives |  | 2,595 |  |  |  | 1,945 |  |  |  | 2,939 |  |  |  | (9,171 | )
Total derivative fair value income (loss) | $ | 154,747 |  |  | $ | 16,808 |  |  | $ | (4,210 | ) |  | $ | 63,406 |

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