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Derivative Instruments | 6 Months Ended
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Jun. 30, 2025
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 accompanying condensed consolidated statements of operations. As of June 30, 2025, the Company’s oil and natural gas derivative contracts consisted of fixed price swaps, costless collars and basis swaps. The following table summarizes the open financial derivative positions as of June 30, 2025, related to our future oil and natural gas production:
|  |  |  | Weighted Average Price
Calendar Quarter / Year |  | Notional Volume |  | Fixed |  | Put |  | Call
|  |  |  | ($ per unit)
Oil Swaps (Bbl) |  |  |  |  |  |  |  |
Q3 2025 |  | 675,000 |  |  | $ | 67.08 |  |  |  |  |
Q4 2025 |  | 630,000 |  |  | $ | 66.68 |  |  |  |  |
2026 |  | 1,740,000 |  |  | $ | 61.33 |  |  |  |  |
2027 |  | 285,000 |  |  | $ | 61.26 |  |  |  |  |
Natural Gas Swaps (MMbtu) |  |  |  |  |  |  |  |
Q3 2025 |  | 480,000 |  |  | $ | 3.30 |  |  |  |  |
Q4 2025 |  | 965,000 |  |  | $ | 3.74 |  |  |  |  |
2026 |  | 2,255,000 |  |  | $ | 3.87 |  |  |  |  |
2027 |  | 600,000 |  |  | $ | 4.19 |  |  |  |  |
Oil Collars (Bbl) |  |  |  |  |  |  |  |
Q3 2025 |  | 452,000 |  |  |  |  | $ | 64.23 |  |  | $ | 74.19 |
Q4 2025 |  | 480,000 |  |  |  |  | $ | 63.10 |  |  | $ | 77.07 |
2026 |  | 1,602,000 |  |  |  |  | $ | 57.84 |  |  | $ | 74.67 |
2027 |  | 310,000 |  |  |  |  | $ | 57.16 |  |  | $ | 66.16 |
Natural Gas Collars (MMbtu) |  |  |  |  |  |  |  |
Q3 2025 |  | 1,110,000 |  |  |  |  | $ | 3.12 |  |  | $ | 3.76 |
Q4 2025 |  | 400,000 |  |  |  |  | $ | 3.30 |  |  | $ | 4.00 |
2026 |  | 2,625,000 |  |  |  |  | $ | 3.19 |  |  | $ | 4.03 |
2027 |  | 450,000 |  |  |  |  | $ | 3.80 |  |  | $ | 5.84 |
Natural Gas Basis Swaps (MMbtu) |  |  |  |  |  |  |  |
Q3 2025 |  | 450,000 |  |  | $ | (2.18) |  |  |  |  |
Q4 2025 |  | 450,000 |  |  | $ | (2.07) |  |  |  |  |
2026 |  | 1,950,000 |  |  | $ | (1.91) |  |  |  |  |
2027 |  | 675,000 |  |  | $ | (0.99) |  |  |  |  |
Interest Rate Contracts 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 was realized upon settlement of the contracts throughout 2024. The following table summarizes the open interest rate derivative positions as of June 30, 2025:
Open Coverage Period |  | Position |  | Notional Amount |  | Fixed Rate
|  |  |  | (In thousands) |  |
July 2025 - April 2026 |  | Long |  | $ | 30,000 |  |  | 3.18 | %
July 2025 - April 2026 |  | Long |  | $ | 50,000 |  |  | 3.04 | %
July 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 accompanying condensed consolidated balance sheets:
|  | June 30, 2025
Balance Sheet Classification |  | Gross Fair Value |  | Amounts Netted |  | Net Fair Value
|  | (In thousands)
Current derivative assets |  | $ | 16,747 |  |  | $ | (5,587) |  |  | $ | 11,160 |
Non-current derivative assets |  | 6,611 |  |  | (6,611) |  |  | — |
Current derivative liabilities |  | (5,599) |  |  | 5,587 |  |  | (12) |
Non-current derivative liabilities |  | (7,720) |  |  | 6,611 |  |  | (1,109) |
Total |  | $ | 10,039 |  |  | $ | — |  |  | $ | 10,039 |
|  | December 31, 2024
Balance Sheet Classification |  | Gross Fair Value |  | Amounts Netted |  | Net Fair Value
|  | (In thousands)
Current derivative assets |  | $ | 9,817 |  |  | $ | (6,553) |  |  | $ | 3,264 |
Non-current derivative assets |  | 6,661 |  |  | (6,076) |  |  | 585 |
Current derivative liabilities |  | (6,553) |  |  | 6,553 |  |  | — |
Non-current derivative liabilities |  | (6,490) |  |  | 6,076 |  |  | (414) |
Total |  | $ | 3,435 |  |  | $ | — |  |  | $ | 3,435 |
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,
| 2025 |  | 2024 |  | 2025 |  | 2024
| (In thousands)
Settlements on derivative contracts | $ | 5,151 |  |  | $ | (1,829) |  |  | $ | 6,266 |  |  | $ | (1,725) |
Non-cash gain (loss) on derivatives | 13,569 |  |  | 1,470 |  |  | 6,604 |  |  | (15,711) |
Gain (loss) on derivatives, net | $ | 18,720 |  |  | $ | (359) |  |  | $ | 12,870 |  |  | $ | (17,436) |

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