XML 24 R12.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Derivative Instruments
 6 Months Ended
Jun. 30, 2024
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 partially limits the downside risk for adverse price changes, their use can also partially limit 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 accompanying condensed consolidated statements of operations.
As of June 30, 2024, the Company’s oil and natural gas derivative instruments consisted of fixed price swaps, costless collars, and basis swaps. The following table summarizes the open financial derivative positions as of June 30, 2024, related to our future oil and natural gas production:
Weighted Average Price
Calendar Quarter / YearNotional VolumeFixedPutCall
($ per unit)
Oil Swaps (Bbl)
Q3 2024405,000 $74.35 
Q4 2024360,000 $73.94 
2025570,000 $72.86 
Natural Gas Swaps (Mcf)
Q3 2024600,000 $3.21 
Q4 2024450,000 $3.67 
20251,470,000 $3.71 
2026555,000 $4.02 
Oil Collars (Bbl)
Q3 2024366,000 $61.00 $83.61 
Q4 2024390,000 $61.92 $83.39 
20251,635,000 $63.41 $76.42 
2026265,000 $60.61 $80.71 
Natural Gas Collars (Mcf)
Q3 2024405,000 $3.01 $3.68 
Q4 2024405,000 $3.50 $4.45 
20251,395,000 $3.29 $4.30 
Oil Basis (Bbl)
Q3 2024330,000 $0.97 
Q4 2024330,000 $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 Secured Overnight Financing Rate and will pay a fixed interest rate, to manage future interest rate exposure related to the Company’s Credit Facility. In March 2024, the Company entered into a fixed-to-floating interest rate swap for the period from May 2024 to December 2024, to reduce our interest rate exposure, which resulted in a gain of approximately $1 million on a notional amount of $80 million. This gain will be realized upon settlement of the contracts in 2024.
At the time of settlement of these interest rate derivative contracts, gain or loss on settlement will be included in interest expense on the condensed consolidated statements of operations. Gains on interest rate swaps were $0.2 million for the three and six months ended June 30, 2024.
The following table summarizes the open interest rate derivative positions as of June 30, 2024:

Open Coverage Period
Position
Notional AmountFixed Rate
(In thousands)
July 2024 - April 2026
Long
$30,000 3.180 %
July 2024 - April 2026
Long
$50,000 3.039 %
July 2024 - December 2024
Short
$80,000 4.910 %
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 June 30, 2024 and December 31, 2023:
June 30, 2024
Balance Sheet ClassificationGross Fair ValueAmounts NettedNet Fair Value
(In thousands)
Current derivative assets$5,345 $(3,919)$1,426 
Non-current derivative assets5,761 (5,130)631 
Current derivative liabilities(12,211)3,919 (8,292)
Non-current derivative liabilities(7,657)5,130 (2,527)
Total$(8,762)$— $(8,762)
December 31, 2023
Balance Sheet ClassificationGross Fair ValueAmounts NettedNet Fair Value
(In thousands)
Current derivative assets$8,948 $(3,935)$5,013 
Non-current derivative assets6,687 (4,391)2,296 
Current derivative liabilities(4,295)3,935 (360)
Non-current derivative liabilities(4,391)4,391 — 
Total$6,949 $— $6,949 
The following table presents the components of the Company's gain (loss) on derivatives, net for the periods presented below:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(In thousands)
Settlements on derivative contracts$(1,829)$(2,303)$(1,725)$(7,391)
Non-cash gain (loss) on derivatives1,470 10,968 (15,711)21,811 
Gain (loss) on derivatives, net$(359)$8,665 $(17,436)$14,420