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Derivative Instruments
 12 Months Ended
Dec. 31, 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 also partially 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 our consolidated statements of operations.
As of December 31, 2024, the Company's oil and natural gas derivative instruments consisted of the following types:
•Fixed Price Swaps – the Company receives a fixed price for the contract and pays a floating market price to the counterparty over a specified period for a contracted volume.
•Costless collars – the combination of a put option (fixed floor) and call option (fixed ceiling), with the options structured so that the premium paid to purchase the put option is offset by the premium received from the sale of the call option. If the market price exceeds the call strike price or falls below the put strike price, we receive the fixed price and pay the market price. If the market price is between the put and the call strike price, no payments are due from either party.
The following table summarizes the open financial derivative positions as of December 31, 2024, related to oil and natural gas production:
Weighted Average Price
Calendar Quarter / YearNotional VolumeFixedPutCall
($ per unit)
Oil Swaps (Bbl)
Q1 2025375,000 $74.31 
Q2 2025345,000 $71.32 
Q3 2025165,000 $68.53 
Q4 2025120,000 $66.99 
Natural Gas Swaps (Mcf)
Q1 2025965,000 $3.61 
Q2 2025495,000 $3.34 
Q3 2025480,000 $3.30 
Q4 20251,165,000 $3.82 
20262,555,000 $3.92 
2027600,000 $4.19 
Oil Collars (Bbl)
Q1 2025468,000 $60.48 $77.04 
Q2 2025300,000 $66.50 $78.77 
Q3 2025452,000 $64.23 $74.19 
Q4 2025480,000 $63.10 $77.07 
20261,107,000 $58.89 $76.99 
Natural Gas Collars (Mcf)
Q1 2025555,000 $3.46 $4.38 
Q2 20251,080,000 $3.04 $3.65 
Q3 20251,110,000 $3.12 $3.76 
Q4 2025400,000 $3.30 $4.00 
20262,675,000 $3.15 $3.82 
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 Chicago Mercantile Exchange Term Secured Overnight Financing Rate ("SOFR") 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 for the year ended December 31, 2024, on a notional amount of $80 million, and is included in our consolidated statements of operations.
The following table summarizes the open interest rate derivative positions as of December 31, 2024:
Open Coverage Period
Position
Notional AmountFixed Rate
(In thousands)
January 2025 - April 2026
Long
$30,000 3.18 %
January 2025 - April 2026
Long
$50,000 3.04 %
April 2026 - April 2027
Long
$45,000 3.90 %
Balance Sheet Presentation of Derivatives    
The following tables present the location and fair value of the Company’s derivative contracts included in our consolidated balance sheets as of December 31, 2024, and 2023:
December 31, 2024
Balance Sheet ClassificationGross Fair ValueAmounts NettedNet Fair Value
(In thousands)
Current derivative assets$9,817 $(6,553)$3,264 
Non-current derivative assets6,661 (6,076)585 
Current derivative liabilities(6,553)6,553 — 
Non-current derivative liabilities(6,490)6,076 (414)
Total$3,435 $— $3,435 
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:
Year Ended December 31,
20242023
(In thousands)
Settlements on derivative contracts
$1,849 $(17,221)
Non-cash gain (loss) on derivatives(3,514)23,414 
Gain (loss) on derivatives, net$(1,665)$6,193