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Derivatives and Risk Management
 3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives and Risk Management Derivatives and Risk Management
The Company is exposed to volatility in market prices and basis differentials for oil, natural gas, and NGLs, which can impact the predictability of our cash flows related to the sale of those commodities. The overall objective of the Company’s hedging program is to protect cash flows from undue exposure to the risk of changing commodity prices, which we do by using various derivative instruments including fixed price swaps, basis swaps, and collars. The Company’s oil option positions primarily consist of costless collars, which combine purchased put options and sold call options with offsetting volumes and differing strike prices. The tables below present these component instruments on a gross basis. As a result of our hedging activities, we may realize prices that are greater or less than the market prices that we would have otherwise received.
We typically enter into over-the-counter (OTC) derivative contracts with financial institutions and regularly monitor the creditworthiness of all counterparties. Certain of our hedging arrangements are with counterparties that are also lenders (or affiliates of lenders) under our Credit Facility. As of March 31, 2026 and December 31, 2025, we did not have any cash or letters of credit posted as collateral for our derivative financial instruments.
The Company does not designate any of its derivative instruments as cash flow hedges; therefore, all changes in fair value of our derivative instruments are recognized in other income within the consolidated statements of operations. We
recognize all derivative instruments as either assets or liabilities at fair value within the consolidated balance sheets, subject to netting arrangements with our counterparties that permit net settlement of gross commodity derivative assets against gross commodity derivative liabilities.
Contracts that result in physical delivery of a commodity expected to be sold by the Company in the normal course of business are generally designated as normal purchases and normal sales and are exempt from derivative accounting. Contracts that result in the physical receipt or delivery of a commodity but are not designated or do not meet all of the criteria to qualify for the normal purchase and normal sale scope exception are subject to derivative accounting.
The following tables provide information about the Company’s derivative financial instruments. The tables present the notional amount, the weighted average contract prices and the fair values by expected maturity dates as of March 31, 2026.
 VolumeWeighted Average Price
Fair Value as of
March 31, 2026
Oil
(in MBbls)
($ per Bbl)
(in thousands)
Fixed price swaps
20261,85163.58$(32,059)
20271,59763.22(10,515)
202840867.95236
20292468.3751
Total
3,880$(42,287)
 VolumeFloor / CeilingFair Value as of
March 31, 2026
Oil(in MBbls)
($ per Bbl)
(in thousands)
Options price
2026219
70.00 - 78.00
(1,255)
202735
70.00 - 78.00
56 
Total
254$(1,199)
 
Volume
Weighted Average Price
Fair Value as of
March 31, 2026
Natural gas
(in MMBtu)
($ per MMBtu)
(in thousands)
Fixed price swaps
202644,756,0003.64$27,448
202756,419,0003.767,039
202836,647,0003.77(1,302)
202930,320,0003.62(981)
203026,580,0003.57(1,421)
20312,120,0004.08(372)
Total
196,842,000$30,411
 VolumeBasis Differential
Fair Value as of
March 31, 2026
Natural gas
(in MMBtu)
($ per MMBtu)
(in thousands)
Basis swaps
202640,690,000(0.93)$(3,835)
202731,629,000(0.64)(1,291)
202832,603,750(0.52)250
20292,607,500(0.30)234
Total
107,530,250$(4,641)
 VolumeWeighted Average Price
Fair Value as of
March 31, 2026
Ethane
(in gallons)($ per gallon)(in thousands)
Fixed price swaps
20266,163,0000.28$213
20277,294,0000.2561
2028530,0000.242
Total
13,987,000$276
 
Volume
Weighted Average Price
Fair Value as of
March 31, 2026
Propane
(in gallons)($ per gallon)(in thousands)
Fixed price swaps
202628,043,0000.74$(1,104)
202737,516,0000.73(97)
20282,521,0000.7112
Total
68,080,000$(1,189)
 VolumeWeighted Average Price
Fair Value as of
March 31, 2026
Isobutane
(in gallons)($ per gallon)(in thousands)
Fixed price swaps
20265,882,0000.94$(747)
20278,090,0000.91(218)
2028539,0000.88(2)
Total
14,511,000$(967)
 VolumeWeighted Average Price
Fair Value as of
March 31, 2026
Normal butane
(in gallons)($ per gallon)(in thousands)
Fixed price swaps
20267,841,0000.89$(1,189)
202710,261,0000.87(420)
2028703,0000.84(15)
Total
18,805,000$(1,624)
 VolumeWeighted Average Price
Fair Value as of
March 31, 2026
Pentane
(in gallons)($ per gallon)(in thousands)
Fixed price swaps
20266,980,0001.51$(2,213)
20279,477,0001.40(440)
2028652,0001.35(13)
Total
17,109,000$(2,666)
Derivative assets and liabilities are presented below as gross assets and liabilities, without regard to master netting arrangements, which are considered in the presentation of derivative assets and liabilities in the accompanying balance sheets.
The following table summarizes the gross fair value of our derivative assets and liabilities and the effect of netting as of March 31, 2026 and December 31, 2025:
 March 31, 2026
Balance Sheet Classification
Gross Amounts
Netting Adjustment
Net Amounts Presented on Balance Sheet
(in thousands)
Assets
Commodity derivative assets, short-term
$33,273$(22,459)$10,814
Commodity derivative assets, long-term
13,824(11,133)2,692
Total assets
$47,097$(33,592)$13,506
Liabilities
Commodity derivative liabilities, short-term
$(53,391)$22,459$(30,931)
Commodity derivative liabilities, long-term
(17,594)11,133(6,461)
Total liabilities
$(70,985)$33,592$(37,392)
 
December 31, 2025
Balance Sheet Classification
Gross Amounts
Netting Adjustment
Net Amounts Presented on Balance Sheet
(in thousands)
Assets
Commodity derivative assets, short-term
$32,718 $(7,880)$24,838 
Commodity derivative assets, long-term
7,701 (4,816)2,885 
Total assets
$40,419 $(12,696)$27,723 
Liabilities
Commodity derivative liabilities, short-term
$(8,986)$7,880 $(1,106)
Commodity derivative liabilities, long-term
(8,177)4,816 (3,361)
Total liabilities
$(17,163)$12,696 $(4,467)
Our total derivative gains and losses for the three months ended March 31, 2026 and 2025 were as follows:
 For the Three Months Ended March 31,
(in thousands)20262025
Realized gain (loss) on derivative instruments$(17,992)$(3,585)
Unrealized loss on derivative instruments(47,142)(33,633)
Total loss on derivative instruments$(65,134)$(37,218)