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Derivatives
 12 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives Derivatives
Commodity Derivatives 

The Company is exposed to commodity price risk, which impacts the predictability of its cash flows from the sale of oil, natural gas and NGL. On occasion, the Company has attempted to manage this risk on a portion of its forecasted oil, natural gas or NGL production sales through the use of commodity derivative contracts.

Historically, the Company has not designated any of its derivative contracts as hedges for accounting purposes. As applicable, if the Company has open derivative contracts, the Company has recorded such contracts at fair value with changes in derivative contract fair values recognized as a gain or loss on derivative contracts in the condensed consolidated income statements. Commodity derivative contracts were settled on a monthly basis, and the commodity derivative contract valuations were adjusted on a mark-to-market valuation basis quarterly.
The following table summarizes derivative activity for the years ended December 31, 2024, 2023 and 2022, (in thousands):
Year Ended December 31,
202420232022
(Gain) loss on derivative contracts$(748)$(1,447)$(5,975)
Realized settlement gains (losses) on derivative contracts$548 $5,876 $1,525 

Master Netting Agreements and the Right of Offset. As applicable, the Company historically has had master netting agreements with all of its commodity derivative counterparties and has presented its derivative assets and liabilities with the same counterparty on a net basis in the unaudited condensed consolidated balance sheets. As a result of the netting provisions, the Company's maximum amount of loss under commodity derivative transactions due to credit risk was limited to the net amounts due from its counterparties. As of December 31, 2024, the Company’s open commodity derivative contracts were held with one counterparty.

The following tables summarize (i) the Company's commodity derivative contracts on a gross basis, (ii) the effects of netting assets and liabilities for which the right of offset exists based on master netting arrangements and (iii) for the Company’s net derivative asset positions as of December 31, 2024 (in thousands):

December 31, 2024
Gross AmountsGross Amounts OffsetAmounts Net of OffsetFinancial CollateralNet Amount
Assets
Derivative contracts - current
$744 $630 $114 $— $114 
Derivative contracts - non-current86 — 86 — 86 
Total$830 $630 $200 $— $200 

There were no open derivative positions as of December 31, 2023.

Because we did not designate any of our derivative contracts as hedges for accounting purposes, changes in the fair value of our derivative contracts were recognized as gains and losses in the earnings of the relevant period. As a result, and as applicable, our current period earnings could have been significantly affected by changes in the fair value of our commodity derivative contracts. Changes in fair value were principally measured based on a comparison of future prices to the contract price at the end of the period.

As of December 31, 2024, the Company's open derivative contracts consisted of oil and NGL commodity derivative contracts under which we will receive a fixed price for the contract and pay a floating market price to the counterparty over a specified period for a contracted volume. These commodity derivative contracts consisted of the following:

PeriodType of Derivative Instrument
Index(1)
Daily Volume (Bbl)Weighted Average Price Per Barrel
January 2025 - December 2025SwapsMont Belvieu OPIS300$39.69 
January 2025 - December 2025SwapsNYMEX WTI500$71.60 
January 2026 - June 2026SwapsNYMEX WTI300$68.67 
(1) NGL swaps exclude ethane
Fair Value of Derivatives 

The following table presents the fair value of the Company’s derivative contracts on a net basis with same counterparty netting (in thousands):
Type of ContractBalance Sheet ClassificationDecember 31, 2024
Oil and NGL price swapsCurrent assets - Derivative Contracts$114 
Oil and NGL price swapsNon-current assets - Derivative Contracts86 
Total net derivative contracts$200 
See Note 4 for additional discussion of the fair value measurement of the Company’s derivative contracts.