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Derivatives | 9 Months Ended
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Sep. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives | Derivatives The Company has two types of derivative instruments as of September 30, 2025: (i) commodity derivatives and (ii) a contingent consideration derivative. See Note 9 for discussion of fair value measurement of derivatives on a recurring basis. The Company's derivatives were not designated as hedges for accounting purposes, and the Company does not enter into such instruments for speculative trading purposes. Accordingly, the changes in derivative fair values are recognized in "Gain (loss) on derivatives, net" under "Non-operating income (expense)" on the consolidated statements of operations. The following table summarizes components of the Company's gain on derivatives, net by type of derivative instrument for the periods presented:
|  | Three months ended September 30, |  | Nine months ended September 30,
(in thousands) |  | 2025 |  | 2024 |  | 2025 |  | 2024
Commodity |  | $ | 62,778 |  |  | $ | 237,103 |  |  | $ | 167,027 |  |  | $ | 90,693 |
Contingent consideration |  | (6,709) |  |  | (10,550) |  |  | 2,206 |  |  | (8,629) |
Gain (loss) on derivatives, net |  | $ | 56,069 |  |  | $ | 226,553 |  |  | $ | 169,233 |  |  | $ | 82,064 |
Commodity Due to the inherent volatility in oil, NGL and natural gas prices and the sometimes wide pricing differentials between where the Company produces and where the Company sells such commodities, the Company engages in commodity derivative transactions, such as puts, swaps, collars and basis swaps, to hedge price risk associated with a portion of the Company's anticipated sales volumes. By removing a portion of the price volatility associated with future sales volumes, the Company expects to mitigate, but not eliminate, the potential effects of variability in cash flows from operations. During the nine months ended September 30, 2025, the Company’s derivatives were settled based on reported prices on commodity exchanges, with (i) oil derivatives settled based on WTI NYMEX pricing, (ii) NGL derivatives settled based on Mont Belvieu OPIS pricing and (iii) natural gas derivatives settled based on Henry Hub NYMEX and Waha Inside FERC pricing. The following table summarizes open commodity derivative positions as of September 30, 2025, for commodity derivatives that were entered into through September 30, 2025, for the settlement periods presented:
|  | Remaining Year 2025 |  | Year 2026 |  | Year 2027
Oil: |  |  |  |  |  |
WTI NYMEX - Swaps: |  |  |  |  |  |
Volume (Bbl) |  | 6,053,600 |  |  | 13,306,500 |  |  | 3,285,000 |
Weighted-average price ($/Bbl) |  | $ | 67.75 |  |  | $ | 64.02 |  |  | $ | 61.07 |
WTI NYMEX - Collars: |  |  |  |  |  |
Volume (Bbl) |  | — |  |  | 1,086,000 |  |  | — |
Weighted-average floor price ($/Bbl) |  | $ | — |  |  | $ | 60.00 |  |  | $ | — |
Weighted-average ceiling price ($/Bbl) |  | $ | — |  |  | $ | 71.02 |  |  | $ | — |
NGL: |  |  |  |  |  |
Non-TET Propane - Swaps: |  |  |  |  |  |
Volume (Bbl) |  | 874,000 |  |  | — |  |  | — |
Weighted-average price ($/Bbl) |  | $ | 34.16 |  |  | $ | — |  |  | $ | — |
Non-TET Ethane - Swaps: |  |  |  |  |  |
Volume (Bbl) |  | 1,104,000 |  |  | — |  |  | — |
Weighted-average price ($/Bbl) |  | $ | 11.04 |  |  | $ | — |  |  | $ | — |
Natural gas: |  |  |  |  |  |
Waha Inside FERC - Swaps: |  |  |  |  |  |
Volume (MMBtu) |  | 15,034,000 |  |  | 55,480,000 |  |  | 43,800,000 |
Weighted-average price ($/MMBtu) |  | $ | 2.32 |  |  | $ | 2.41 |  |  | $ | 2.70 |
Waha Inside FERC to Henry Hub NYMEX - Basis Swaps: |  |  |  |  |  |
Volume (MMBtu) |  | — |  |  | — |  |  | 14,600,000 |
Weighted-average differential ($/MMBtu) |  | $ | — |  |  | $ | — |  |  | $ | (0.97) |
Contingent consideration On May 7, 2021, the Company entered into a purchase and sale agreement (the "Sixth Street PSA"), to sell 37.5% of the Company's working interest in certain producing wellbores and the related properties primarily located within Glasscock and Reagan Counties, Texas. The Sixth Street PSA provides for potential contingent payments to be paid to the Company if certain cash flow targets are met related to divested oil and natural gas property operations (the "Sixth Street Contingent Consideration"). The Sixth Street Contingent Consideration provides the Company with the right to receive up to a maximum of $93.7 million in additional cash consideration, comprised of potential quarterly payments through June 2027 totaling up to $38.7 million, of which $20.0 million is still remaining, and a potential balloon payment of $55.0 million in June 2027. The estimated fair value of the Sixth Street Contingent Consideration was $18.5 million as of September 30, 2025 and $16.3 million as of December 31, 2024.

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