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DERIVATIVE FINANCIAL INSTRUMENTS | 6 Months Ended
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Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS At June 30, 2024, the Company had various costless collar contracts open and in place to mitigate its exposure to oil price volatility, each with an established price floor and ceiling. At June 30, 2024, the Company had natural gas basis differential swap contracts open and in place to mitigate its exposure to natural gas price volatility, with a specific term (calculation period), notional quantity (volume hedged) and fixed price. The Company had no open contracts associated with natural gas liquids prices at June 30, 2024. The following is a summary of the Company’s open costless collar contracts at June 30, 2024.
Commodity |  | Calculation Period |  | Notional Quantity (Bbl) |  | Weighted Average Price Floor ($/Bbl) |  | Weighted Average Price Ceiling ($/Bbl) |  | Fair Value of Asset (Liability) (thousands)
Oil Costless Collar |  | 7/01/2024 - 6/30/2025 |  | 16,425,000 |  |  | $ | 60.00 |  |  | $ | 86.26 |  |  | $ | (14,704) |
Total open costless collar contracts |  | $ | (14,704) |
The following is a summary of the Company’s open basis differential swap contracts at June 30, 2024.
Commodity |  | Calculation Period |  | Notional Quantity (MMBtu) |  | Fixed Price ($/MMBtu) |  | Fair Value of Asset (Liability) (thousands)
Natural Gas Basis Differential |  | 7/01/2024 - 12/31/2025 |  | 16,470,000 |  |  | $ | (0.59) |  |  | $ | 7,620 |
Total open basis differential swap contracts |  |  |  |  |  | $ | 7,620 |
The Company’s derivative financial instruments are subject to master netting arrangements, and the Company’s counterparties allow for cross-commodity master netting provided the settlement dates for the commodities are the same. The Company does not present different types of commodities with the same counterparty on a net basis in its interim unaudited condensed consolidated balance sheets. The following table presents the gross asset and liability fair values of the Company’s commodity price derivative financial instruments and the location of these balances in the interim unaudited condensed consolidated balance sheets as of June 30, 2024 and December 31, 2023 (in thousands).
Derivative Instruments |  | Gross amounts recognized |  | Gross amounts netted in the condensed consolidated balance sheets |  | Net amounts presented in the condensed consolidated balance sheets |  |
June 30, 2024 |  |  |  |  |  |  |  |
Current assets |  | $ | 23,461 |  |  | $ | (17,871) |  |  | $ | 5,590 |  |  |
Other assets |  | 2,030 |  |  | — |  |  | 2,030 |  |  |
Current liabilities |  | (32,575) |  |  | 17,871 |  |  | (14,704) |  |  |
Total |  | $ | (7,084) |  |  | $ | — |  |  | $ | (7,084) |  |  |
December 31, 2023 |  |  |  |  |  |  |  |
Current assets |  | $ | 2,573 |  |  | $ | (461) |  |  | $ | 2,112 |  |  |
Other assets |  | 1,743 |  |  | (1,185) |  |  | 558 |  |  |
Total |  | $ | 4,316 |  |  | $ | (1,646) |  |  | $ | 2,670 |  |  |
The following table summarizes the location and aggregate gain (loss) of all derivative financial instruments recorded in the interim unaudited condensed consolidated statements of income for the periods presented (in thousands).
|  |  |  | Three Months Ended June 30, |  | Six Months Ended June 30,
Type of Instrument |  | Location in Condensed Consolidated Statement of Income |  | 2024 |  | 2023 |  | 2024 |  | 2023
Derivative Instrument |  |  |  |  |  |  |  |  |  |
Natural Gas |  | Revenues: Realized gain (loss) on derivatives |  | $ | 3,770 |  |  | $ | (3,148) |  |  | $ | 4,045 |  |  | $ | 521 |
Realized gain (loss) on derivatives |  | $ | 3,770 |  |  | $ | (3,148) |  |  | $ | 4,045 |  |  | $ | 521 |
Oil |  | Revenues: Unrealized loss on derivatives |  | $ | (14,704) |  |  | $ | — |  |  | $ | (14,704) |  |  | $ | — |
Natural Gas |  | Revenues: Unrealized gain (loss) on derivatives |  | 2,875 |  |  | (8,659) |  |  | 4,950 |  |  | (15,726) |
Unrealized loss on derivatives |  | $ | (11,829) |  |  | $ | (8,659) |  |  | $ | (9,754) |  |  | $ | (15,726) |
Total |  |  |  | $ | (8,059) |  |  | $ | (11,807) |  |  | $ | (5,709) |  |  | $ | (15,205) |

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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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