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Commodity Derivative Financial Instruments
 9 Months Ended
Sep. 30, 2025
Commodity Derivative Financial Instruments  
Commodity Derivative Financial Instruments

Note 5 – Commodity Derivative Financial Instruments

The Company has used derivative financial instruments to manage its exposure to commodity price fluctuations in the past. Commodity derivative instruments have been used to reduce the effect of volatility of price changes on the oil and natural gas the Company produces and sells. The Company does not enter into derivative financial instruments for speculative or trading purposes. The Company’s derivative financial instrument activity has consisted of swaps and put options.

The Company does not designate its derivative instruments to qualify for hedge accounting. Accordingly, the Company reflects changes in the fair value of its derivative instruments in its unaudited interim condensed consolidated statements of operations as they occur. These contracts are recognized and recorded at fair value as an asset or liability on the Company’s unaudited interim condensed consolidated balance sheets. Cash receipts or payments upon settlement of swaps and put options are reflected in the operating activities section of its unaudited interim condensed consolidated statement of cash flows.

The following table summarizes the net realized and unrealized amounts reported in earnings related to the oil derivative instruments:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Three Months Ended September 30, 

​

For the Nine Months Ended September 30, 

​

​

    

2025

    

2024

    

2025

    

2024

​

Gain on derivatives, realized

​

$

—

​

$

282

​

$

—

​

$

18

​

Gain (loss) on derivatives, unrealized

​

 

—

​

 

188

​

 

—

​

 

(407)

​

Gain (loss) on derivatives, net

​

$

—

​

$

470

​

$

—

​

$

(389)

​

​

The following table represents the Company’s net cash settlements received on derivatives:

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​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Three Months Ended September 30, 

​

For the Nine Months Ended September 30, 

​

​

    

2025

    

2024

    

2025

    

2024

​

Cash settlements received on oil derivatives, net

​

$

—

​

$

282

​

$

—

​

$

18

​

​

The Company did not have any open commodity derivative positions as of September 30, 2025.