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Derivative Instruments | 3 Months Ended
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Mar. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments | Note 5 – Derivative Instruments The Company utilizes commodity derivative instruments to reduce its exposure to crude oil and natural gas price volatility for a portion of its estimated production from its proved, developed, producing oil and natural gas properties. As of March 31, 2025, the Company only had commodity swap contracts outstanding, which guarantee a fixed price on contracted volumes over specified time periods. However, in the future, the Company could utilize other types of derivative instruments including call and purchased options, put spreads, collars, and three-way collars. As of March 31, 2025 and December 31, 2024, the Company’s derivative counterparty was Citi, which is the administrative agent and a lender of its Credit Facility. As of March 31, 2025, the Company had the following outstanding crude oil and natural gas derivative contracts in place, which settle monthly and are indexed to NYMEX West Texas Intermediate and NYMEX Henry Hub, respectively: Schedule of Outstanding Crude Oil and Natural Gas Derivative Contracts in Place
|  | Settling April 1, 2025 through December 31, 2025 |  |  | Settling January 1, 2026 through December 31, 2026 |  |  | Settling January 1, 2027 through December 31, 2027 |  |  | Settling January 1, 2028 through December 31, 2028 |
Crude Oil Swaps: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Notional volume (Bbls) |  |  | 714,342 |  |  |  | 496,884 |  |  |  | 223,599 |  |  |  | 169,839 |
Weighted average price ($/Bbl) |  | $ | 66.89 |  |  | $ | 64.40 |  |  | $ | 62.70 |  |  | $ | 61.81 |
Natural Gas Swaps: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Notional volume (MMBtus) |  |  | 1,026,999 |  |  |  | 885,147 |  |  |  | 626,832 |  |  |  | 457,368 |
Weighted average price ($/MMBtu) |  | $ | 3.46 |  |  | $ | 3.73 |  |  | $ | 3.69 |  |  | $ | 3.49 |
The Company recognizes all of its derivative instruments at fair value as assets or liabilities on the accompanying consolidated balance sheets. The Company has not designated any of its derivative instruments as hedges for accounting purposes; therefore, the aggregate net gains and losses resulting from changes in the fair values of its outstanding derivatives and the settlement of derivative instruments during the period are recognized as part of the loss on derivatives, net on the accompanying consolidated statements of operations. Additionally, all of the Company’s hedge positions are currently in a liability position; therefore, there is no offsetting in the presentation of its derivative instruments. The following table presents the net fair values of the Company’s derivative instruments, recorded on the consolidated balance sheet for the period presented: Schedule of Derivative Instruments Consolidated Balance Sheets
|  | March 31, 2025 |  |  | December 31, 2024 |
|  | (In thousands) |
Current liabilities |  | $ | 3,071 |  |  | $ | 2,446 |
Long-term liabilities |  |  | 1,441 |  |  |  | 1,949 |
Total derivatives liabilities |  | $ | 4,512 |  |  | $ | 4,395 |
The following table presents the components of loss on derivatives, net reflected on the accompanying consolidated statement of operations and cash flows for the period presented: Schedule of Derivative Instruments
|  | 2025 |  |  | 2024 |
|  | Three Months Ended March 31, |
|  | 2025 |  |  | 2024 |
|  | (In thousands) |
Cash paid for derivative settlements, net: |  |  |  |  |  |  |  |
Crude oil |  | $ | (519 | ) |  | $ | — |
Natural gas |  |  | (262 | ) |  |  | — |
Total cash paid for derivative settlements, net: |  |  | (781 | ) |  |  | — |
Non-cash gain (loss) on derivatives: |  |  |  |  |  |  |  |
Crude oil |  |  | 1,074 |  |  |  | — |
Natural gas |  |  | (1,191 | ) |  |  | — |
Total non-cash loss on derivatives |  |  | (117 | ) |  |  | — |
Loss on derivatives, net |  | $ | (898 | ) |  | $ | — |

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/815/tableOfContent + Details
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