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Derivative Instruments
 9 Months Ended
Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
Oil and Natural Gas Contracts
The Company uses commodity based derivative contracts to reduce exposure to fluctuations in oil and natural gas prices. While the use of these contracts limits the downside risk for adverse price changes, their use also limits future revenues from favorable price changes. We have not designated our derivative contracts as hedges for accounting purposes, and therefore changes in the fair value of derivatives are included and recognized in other income (expense) in the condensed consolidated statements of operations.
As of September 30, 2023, the Company’s oil and natural gas derivative instruments consisted of fixed price swaps, costless collars, and basis protection swaps. The following table summarizes the open financial derivative positions as of September 30, 2023, related to oil and natural gas production:
Weighted Average Price
Calendar Quarter / YearNotional VolumeFixedPutCall
($ per unit)
Oil Swaps (Bbl)
Q4 2023437,000 $69.35 
2024870,000 $72.39 
2025330,000 $71.86 
Natural Gas Swaps (Mcf)
Q4 2023670,000 $3.26 
20242,400,000 $3.38 
2025600,000 $3.85 
Oil Collars (Bbl)
Q4 2023330,000 $68.64 $88.85 
20241,621,000 $61.12 $84.39 
2025573,000 $62.09 $77.28 
Natural Gas Collars (Mcf)
Q4 2023300,000 $3.12 $4.07 
20241,065,000 $3.19 $4.14 
2025555,000 $3.30 $4.49 
Oil Basis (Bbl)
Q4 2023450,000 $1.28 
20241,320,000 $0.97 
Interest Rate Contracts
The Company entered into floating-to-fixed interest rate swaps, in which it will receive a floating market rate equal to one-month CME Term SOFR Rate and will pay a fixed interest rate, to manage future interest rate exposure related to the Company’s revolving credit facility.

The following table summarizes the open interest rate derivative positions as of September 30, 2023:

Open Coverage PeriodNotional AmountFixed Rate
(In thousands)
April 2024 - April 2026$30,000 3.18 %
April 2024 - April 2026$50,000 3.039 %
Balance Sheet Presentation of Derivatives    
The following tables present the location and fair value of the Company’s derivative contracts included in the condensed consolidated balance sheets as of September 30, 2023 and December 31, 2022:
September 30, 2023
Balance Sheet ClassificationGross Fair ValueAmounts NettedNet Fair Value
(In thousands)
Current derivative assets$3,313 $(2,624)$689 
Non-current derivative assets6,174 (4,818)1,356 
Current derivative liabilities(21,727)2,624 (19,103)
Non-current derivative liabilities(11,490)4,818 (6,672)
Total$(23,730)$— $(23,730)
December 31, 2022
Balance Sheet ClassificationGross Fair ValueAmounts NettedNet Fair Value
(In thousands)
Current derivative assets$64 $(44)$20 
Non-current derivative assets9 (9)— 
Current derivative liabilities(16,516)44 (16,472)
Non-current derivative liabilities(21)9 (12)
Total$(16,464)$— $(16,464)
The following table presents the components of the Company's gain (loss) on derivatives for the periods presented below:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(In thousands)
Settlements on derivative contracts$(6,269)$(17,040)$(13,660)$(61,198)
Non-cash gain (loss) on derivatives(29,076)34,640 (7,265)16,803 
Gain (loss) on derivatives$(35,345)$17,600 $(20,925)$(44,395)