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DERIVATIVES
 9 Months Ended
Sep. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES DERIVATIVES
We periodically enter into commodity derivative contracts to mitigate a portion of our exposure to potentially adverse market changes in commodity prices for our expected future crude oil and natural gas production and the associated impact on our cash flows. Our commodity derivative contracts consist of swaps, collars, and basis protection swaps. As of September 30, 2025, all of our derivative counterparties were members of our Credit Facility lender group, and all commodity derivative contracts are entered into for other-than-trading purposes. We do not designate our commodity derivative contracts as hedging instruments.
A typical swap arrangement guarantees a fixed price on contracted volumes. If the agreed upon published third-party index price (“index price”) is lower than the fixed contract price at the time of settlement, we receive the difference. If the index price is higher than the fixed contact price at the time of settlement, we pay the difference.
A typical collar arrangement establishes a floor and ceiling price on contracted volumes through the use of a short call and a long put. When the index price is below the floor price at the time of settlement, we receive the difference. When the index price is above the ceiling price at the time of settlement, we pay the difference. When the index price is between the floor price and ceiling price, no payment or receipt occurs.
A typical basis protection swap arrangement guarantees a fixed price differential from a specified delivery point on contracted volumes. If the price differential is greater than the fixed contract differential at the time of settlement, we receive the difference. If the price differential is less than the fixed contract differential at the time of settlement, we pay the difference.
The following table summarizes the components of the derivative gain (loss), net presented on the accompanying statements of operations for the periods below (in millions):
 Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Derivative cash settlement gain (loss), net
Crude oil contracts$39 $(12)$76 $(42)
Natural gas contracts26 30 62 36 
Total derivative cash settlement gain (loss), net
65 18 138 (6)
Change in fair value gain
14 133 97 55 
Total derivative gain, net
$79 $151 $235 $49 
As of September 30, 2025, we had entered into the following commodity price derivative contracts:
Q4 2025Q1 2026Q2 2026Q3 2026Q4 2026
Crude Oil Derivatives (volumes in Bbl/day and prices in $/Bbl)
Swaps
NYMEX WTI Volumes74,70037,00046,50018,000—
Weighted-Average Contract Price$66.41 $67.79 $61.28 $64.48 $— 
Collars
NYMEX WTI Volumes19,00015,0007,0003,000—
Weighted-Average Ceiling Price$75.11 $75.18 $70.29 $66.02 $— 
Weighted-Average Floor Price$60.00 $60.00 $60.00 $60.00 $— 
Natural Gas Derivatives (volumes in MMBtu/day and prices in $/MMBtu)
Swaps
NYMEX HH Volumes240,00060,00060,00060,00060,000
Weighted-Average Contract Price$3.83 $4.42 $4.42 $4.42 $4.42 
Collars
NYMEX HH Volumes50,000200,000200,000200,000200,000
Weighted-Average Ceiling Price$4.30 $4.35 $4.35 $4.35 $4.35 
Weighted-Average Floor Price$3.66 $3.52 $3.52 $3.52 $3.52 
Basis Protection Swaps
Waha Basis Volumes140,000130,000130,000130,000130,000
Weighted-Average Contract Price$(1.32)$(1.31)$(1.31)$(1.31)$(1.31)
CIG Basis Volumes$150,000 $130,000 $130,000 $130,000 $130,000 
Weighted-Average Contract Price$(0.83)$(0.57)$(0.57)$(0.57)$(0.57)
Subsequent to September 30, 2025 and as of October 31, 2025, we had entered into the following commodity price derivative contracts:
Q4 2025Q1 2026Q2 2026Q3 2026Q4 2026
Crude Oil Derivatives (volumes in Bbl/day and prices in $/Bbl)
Swaps
NYMEX WTI Volumes———3,000—
Weighted-Average Contract Price$— $— $— $60.00 $— 
Collars
NYMEX WTI Volumes———3,000—
Weighted-Average Ceiling Price$— $— $— $65.02 $— 
Weighted-Average Floor Price$— $— $— $55.00 $— 
Derivative Assets and Liabilities Fair Value 
Our commodity price derivatives are measured at fair value and are included in the accompanying balance sheets as derivative assets and liabilities. The following table contains a summary of all our derivative positions reported on the accompanying balance sheets as well as a reconciliation between the gross assets and liabilities and the potential effects of master netting arrangements on the fair value of our commodity derivative contracts as of September 30, 2025, and December 31, 2024 (in millions):
September 30, 2025December 31, 2024
Derivative Assets: 
Commodity contracts - current$169 $67 
Commodity contracts - noncurrent2 17 
Total derivative assets171 84 
Amounts not offset in the accompanying balance sheets(25)(27)
Total derivative assets, net$146 $57 
Derivative Liabilities:  
Commodity contracts - current$(17)$(22)
Commodity contracts - long-term(8)(13)
Total derivative liabilities(25)(35)
Amounts not offset in the accompanying balance sheets25 27 
Total derivative liabilities, net$— $(8)