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Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2023

Financial Instruments [Abstract]

Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments

The following table presents the carrying amounts, net of discount, premium and deferred financing costs, and estimated fair values of the Company’s debt instruments (in thousands):

	September 30, 2023						December 31, 2022
	Carrying Amount			Fair Value			Carrying Amount			Fair Value
12.00% Second-Priority Senior Secured Notes – due January 2026	$	597,544		$	664,523		$	590,132		$	674,542
11.75% Senior Secured Second Lien Notes – due April 2026(1)	$	250,006		$	248,723		$	—		$	—
Bank Credit Facility – matures March 2027	$	204,333		$	215,000		$	(4,792	)	$	—

(1)Assumed in connection with the EnVen Acquisition. See further discussion in Note 6 — Debt.

Schedule of Impact that Derivatives not Qualifying as Hedging Instruments in Condensed Consolidated Statements of Operations

The following table presents the impact that derivatives, not designated as hedging instruments, had on its Condensed Consolidated Statements of Operations (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Net cash received (paid) on settled derivative instruments	$	(6,313	)	$	(81,162	)	$	(10,474	)	$	(368,483	)
Unrealized gain (loss)(1)		(92,489	)		195,342			(3,194	)		137,350
Price risk management activities income (expense)	$	(98,802	)	$	114,180		$	(13,668	)	$	(231,133	)

(1)Includes $1.4 million gain from the unrealized derivative instruments acquired from the EnVen Acquisition for the nine months ended September 30, 2023.

Schedule of Contracted Volumes and Weighted Average Prices and will Receive Under the Terms of Derivative Contracts

The following tables reflect the contracted average daily volumes and weighted average prices under the terms of the Company's derivative contracts as of September 30, 2023:

Swap Contracts
Production Period	Settlement Index	Volumes			Swap Price
Crude oil:		(Bbls)			(per Bbl)
October 2023 – December 2023	NYMEX WTI CMA		12,000		$	75.25
January 2024 – December 2024	NYMEX WTI CMA		16,105		$	74.37
January 2025 – December 2025	NYMEX WTI CMA		6,986		$	74.11
Natural gas:		(MMBtu)			(per MMBtu)
October 2023 – December 2023	NYMEX Henry Hub		20,000		$	4.22
January 2024 – December 2024	NYMEX Henry Hub		17,459		$	3.44
January 2025 – December 2025	NYMEX Henry Hub		12,466		$	4.00

Two-Way Collar Contracts
Production Period	Settlement Index	Volumes			Floor Price			Ceiling Price
Crude oil:		(Bbls)			(per Bbl)			(per Bbl)
October 2023 – December 2023	NYMEX WTI CMA		7,826		$	67.76		$	86.39
January 2024 – December 2024	NYMEX WTI CMA		1,497		$	70.00		$	79.32
Natural gas:		(MMBtu)			(per MMBtu)			(per MMBtu)
October 2023 – December 2023	NYMEX Henry Hub		10,000		$	5.25		$	8.46
January 2024 – December 2024	NYMEX Henry Hub		10,000		$	4.00		$	6.90

Three-Way Collar Contracts
Production Period	Settlement Index	Volumes			Short Put Price			Floor Price			Ceiling Price
Crude oil:		(Bbls)			(per Bbl)			(per Bbl)			(per Bbl)
October 2023 – December 2023	NYMEX WTI CMA		9,200		$	51.86		$	65.11		$	109.25
January 2024 – March 2024	NYMEX WTI CMA		3,200		$	57.27		$	70.00		$	98.01

Summary of Additional Information Related to Financial Instruments Measured at Fair Value on Recurring Basis

The following tables provide additional information related to financial instruments measured at fair value on a recurring basis (in thousands):

	September 30, 2023
	Level 1			Level 2			Level 3			Total
Assets:
Oil and natural gas derivatives	$	—		$	16,047		$	—		$	16,047
Liabilities:
Oil and natural gas derivatives		—			(64,023	)		—			(64,023	)
Total net asset (liability)	$	—		$	(47,976	)	$	—		$	(47,976	)

	December 31, 2022
	Level 1			Level 2			Level 3			Total
Assets:
Oil and natural gas derivatives	$	—		$	32,883		$	—		$	32,883
Liabilities:
Oil and natural gas derivatives		—			(76,242	)		—			(76,242	)
Total net asset (liability)	$	—		$	(43,359	)	$	—		$	(43,359	)

Schedule of Fair Value of Derivative Financial Instruments

The following table presents the fair value of derivative financial instruments as well as the potential effect of netting arrangements on the Company's recognized derivative asset and liability amounts (in thousands):

	September 30, 2023						December 31, 2022
	Assets			Liabilities			Assets			Liabilities
Oil and natural gas derivatives:
Current	$	11,497		$	55,042		$	25,029		$	68,370
Non-current		4,550			8,981			7,854			7,872
Total gross amounts presented on balance sheet		16,047			64,023			32,883			76,242
Less: Gross amounts not offset on the balance sheet		16,047			16,047			32,883			32,883
Net amounts	$	—		$	47,976		$	—		$	43,359

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