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Derivative Instruments
 12 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
Commodity derivative contracts. The Company utilizes derivative financial instruments to manage risks related to changes in commodity prices. The Company’s crude oil contracts settle monthly based on the average NYMEX WTI, and its natural gas contracts settle monthly based on the average NYMEX Henry Hub natural gas index price.
The Company utilizes derivative financial instruments including fixed-price swaps and two-way and three-way collars to manage risks related to changes in commodity prices. The Company’s fixed-price swaps are designed to establish a fixed price
for the volumes under contract. Two-way collars are designed to establish a minimum price (floor) and a maximum price (ceiling) for the volumes under contract. Three-way collars are designed to establish a minimum price (floor), unless the market price falls below the sold put (sub-floor), at which point the minimum price would be the index price plus the difference between the purchased put and the sold call strike price. The sold call establishes a maximum price (ceiling) for the volumes under contract. The Company may, from time to time, restructure existing derivative contracts or enter into new transactions to effectively modify the terms of current contracts in order to improve the pricing parameters in existing contracts.
At December 31, 2024, the Company had the following outstanding commodity derivative contracts:
CommoditySettlement
Period		Derivative
Instrument		VolumesWeighted Average Prices
Fixed-Price SwapsSub-FloorFloorCeiling
Crude oil2025Two-way collars5,838,000 Bbls$64.22 $77.75 
Crude oil2025Three-way collars2,371,000 Bbls$52.69 $67.69 $82.14 
Crude oil2025Fixed-price swaps1,092,000 Bbls$70.90 
Crude oil2026Three-way collars3,270,000 Bbls$51.38 $66.38 $78.72 
Crude oil2026Two-way collars730,000 Bbls$65.00 $71.83 
Natural gas2025Two-way collars1,380,000 MMBtu$3.00 $4.18 
Natural gas2025Fixed price swaps7,521,600 MMBtu$3.65 
Natural gas2026Two-way collars2,262,500 MMBtu$3.00 $4.73 
Natural gas2026Fixed-price swaps8,212,500 MMBtu$3.74 
Subsequent to December 31, 2024, the Company entered into the following commodity derivative contracts:
Weighted Average Prices
CommoditySettlement PeriodDerivative InstrumentVolumesFixed-Price SwapsSub-FloorFloorCeiling
Crude oil2025Fixed-price swaps2,015,000 Bbls$70.45 
Crude oil2025Two-way collars91,000 Bbls$65.00 $77.35 
Crude oil2026Three-way collars730,000 Bbls$50.00 $65.00 $73.93 
Crude oil2026Fixed-price swaps180,000 Bbls$68.67 
Crude oil2027Three-way collars182,000 Bbls$50.00 $65.00 $74.15 
Natural gas2025Fixed-price swaps15,640,000 MMBtu$4.12 
Natural gas2026Fixed-price swaps8,220,000 MMBtu$3.94 
Natural gas2026Two-way collars5,430,000 MMBtu$3.83 $4.26 
Transportation derivative contracts. The Company had contracts that provided for the transportation of crude oil through a buy/sell structure from North Dakota to either Cushing, Oklahoma or Guernsey, Wyoming. The contracts had required the purchase and sale of fixed volumes of crude oil through July 2024 as specified in the agreements. The Company determined that these contracts qualified as derivatives and did not elect the “normal purchase normal sale” exclusion. As of December 31, 2023, the estimated fair value of the remaining contract was a $5.9 million asset, which was classified as a current derivative asset on the Company’s Consolidated Balance Sheet. The Company recorded the changes in fair value of these contracts within GPT expenses on the Company’s Consolidated Statement of Operations. Settlements on these contracts are reflected as operating activities on the Company’s Consolidated Statements of Cash Flows and represent cash payments to the counterparties for transportation of crude oil or the net settlement of contract liabilities if the transportation was not utilized, as applicable. See Note 6—Fair Value Measurements for additional information.
Contingent consideration. The Company bifurcated the Contingent Consideration from the host contract and accounted for it separately at fair value. The Contingent Consideration is marked-to-market each reporting period, with changes in fair value recorded in the other income (expense) section of the Company’s Consolidated Statements of Operations as a net gain or loss on derivative instruments. As of December 31, 2024, the estimated fair value of the Contingent Consideration was classified as a current derivative asset of $22.8 million on the Consolidated Balance Sheet. See Note 6—Fair Value Measurements for additional information.
The following table summarizes the location and amounts of gains and losses from the Company’s derivative instruments recorded in the Company’s Consolidated Statements of Operations for the periods presented:
 Year Ended December 31,
Derivative InstrumentStatement of Operations Location202420232022
(In thousands)
Commodity derivativesNet gain (loss) on derivative instruments$7,489 $56,396 $(224,238)
Commodity derivatives (buy/sell transportation contracts)
Gathering, processing and transportation expenses(1)
(5,877)20,570 7,331 
Contingent considerationNet gain on derivative instruments5,074 6,786 16,110 
__________________ 
(1)    The change in the fair value of the transportation derivative contracts was recorded as a loss in GPT expenses for the year ended December 31, 2024 and as a gain in GPT expenses for the years ended December 31, 2023 and 2022.
In accordance with the FASB’s authoritative guidance on disclosures about offsetting assets and liabilities, the Company is required to disclose both gross and net information about instruments and transactions eligible for offset in the statement of financial position as well as instruments and transactions subject to an agreement similar to a master netting agreement. The Company’s derivative instruments are presented as assets and liabilities on a net basis by counterparty, as all counterparty contracts provide for net settlement. No margin or collateral balances are deposited with counterparties, and as such, gross amounts are offset to determine the net amounts presented in the Company’s Consolidated Balance Sheets.
The following tables summarize the location and fair value of all outstanding commodity derivative instruments recorded in the Company’s Consolidated Balance Sheets:
December 31, 2024
Derivative InstrumentBalance Sheet LocationGross AmountGross Amount OffsetNet Amount
(In thousands)
Derivatives assets:
Commodity derivativesDerivative instruments — current assets$33,579 $(20,415)$13,164 
Contingent considerationDerivative instruments — current assets22,780 — 22,780 
Commodity derivativesDerivative instruments — non-current assets31,676 (26,047)5,629 
Total derivatives assets$88,035 $(46,462)$41,573 
Derivatives liabilities:
Commodity derivativesDerivative instruments — current liabilities$21,645 $(20,415)$1,230 
Commodity derivativesDerivative instruments — non-current liabilities27,063 (26,047)1,016 
Total derivatives liabilities$48,708 $(46,462)$2,246 
December 31, 2023
Derivative InstrumentBalance Sheet LocationGross AmountGross Offset AmountNet Amount
(In thousands)
Derivatives assets:
Commodity derivativesDerivative instruments — current assets$20,647 $(11,769)$8,878 
Contingent considerationDerivative instruments — current assets22,614 — 22,614 
Commodity derivatives (buy/sell transportation contracts)Derivative instruments — current assets5,877 — 5,877 
Commodity derivativesDerivative instruments — non-current assets16,760 (14,326)2,434 
Contingent considerationDerivative instruments — non-current assets20,092 — 20,092 
Total derivatives assets$85,990 $(26,095)$59,895 
Derivatives liabilities:
Commodity derivativesDerivative instruments — current liabilities$25,978 $(11,769)$14,209 
Commodity derivativesDerivative instruments — non-current liabilities15,043 (14,326)717 
Total derivatives liabilities$41,021 $(26,095)$14,926