XML 24 R13.htm IDEA: XBRL DOCUMENT
v3.25.2

Derivative Instruments | 6 Months Ended
--- | ---
Jun. 30, 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, natural gas, and NGL price volatility for a portion of its estimated production from its proved, developed, producing oil and natural gas properties. As of June 30, 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 may utilize other types of derivative instruments including call and purchased options, put spreads, collars, and three-way collars. All of the Company’s commodity derivative counterparties are large financial institutions with investment-grade credit ratings, as such, the Company believes it does not have any significant credit risk associated with its counterparties and does not currently anticipate any nonperformance from its counterparties. As of June 30, 2025, the Company had the following outstanding crude oil, natural gas, and NGL derivative contracts in place, which settle monthly and are indexed to NYMEX West Texas Intermediate, NYMEX Henry Hub, and Mount Belvieu OPIS, respectively: Schedule of Outstanding Crude Oil and Natural Gas Derivative Contracts in Place
|  | Settling July 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) |  |  | 1,542,652 |  |  |  | 2,241,616 |  |  |  | 1,592,503 |  |  |  | 471,907 |
Weighted average price ($/Bbl) |  | $ | 68.04 |  |  | $ | 64.42 |  |  | $ | 64.16 |  |  | $ | 63.47 |
Natural Gas Swaps: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Notional volume (MMBtus) |  |  | 6,285,244 |  |  |  | 11,413,134 |  |  |  | 9,874,626 |  |  |  | 4,406,357 |
Weighted average price ($/MMBtu) |  | $ | 4.30 |  |  | $ | 4.08 |  |  | $ | 4.07 |  |  | $ | 4.00 |
Ethane Swaps: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Notional volume (Bbls) |  |  | 178,406 |  |  |  | 288,956 |  |  |  | 232,375 |  |  |  | 51,809 |
Weighted average price ($/Bbl) |  | $ | 11.91 |  |  | $ | 11.54 |  |  | $ | 11.05 |  |  | $ | 11.28 |
Propane Swaps: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Notional volume (Bbls) |  |  | 310,017 |  |  |  | 509,724 |  |  |  | 417,744 |  |  |  | 94,220 |
Weighted average price ($/Bbl) |  | $ | 28.74 |  |  | $ | 26.36 |  |  | $ | 26.51 |  |  | $ | 26.00 |
Iso Butane Swaps: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Notional volume (Bbls) |  |  | 39,012 |  |  |  | 63,185 |  |  |  | 50,812 |  |  |  | 11,328 |
Weighted average price ($/Bbl) |  | $ | 35.62 |  |  | $ | 33.92 |  |  | $ | 30.22 |  |  | $ | 29.63 |
Normal Butane Swaps: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Notional volume (Bbls) |  |  | 107,931 |  |  |  | 174,809 |  |  |  | 140,580 |  |  |  | 31,343 |
Weighted average price ($/Bbl) |  | $ | 38.32 |  |  | $ | 35.24 |  |  | $ | 31.37 |  |  | $ | 30.37 |
Pentane Plus Swaps: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Notional volume (Bbls) |  |  | 80,461 |  |  |  | 130,321 |  |  |  | 104,802 |  |  |  | 23,366 |
Weighted average price ($/Bbl) |  | $ | 46.17 |  |  | $ | 53.05 |  |  | $ | 52.40 |  |  | $ | 52.49 |
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, it presents aggregate net gains or losses resulting from changes in the fair values of its outstanding derivatives as unrealized gains on derivatives and aggregate net gains or losses resulting from the settlement of derivative instruments during the period are recognized as realized gain on derivatives on the accompanying consolidated statements of operations. The Company typically has numerous hedge positions that span several time periods and often result in both fair value derivative asset and liability positions held with that counterparty. The Company has elected to net its derivative instrument fair values executed with the same counterparty, pursuant to the International Swaps and Derivatives Association, Inc. master agreements, which provide for the net settlement over the term of the contract and in the event of the default or termination of the contract. Schedule of Derivative Instruments The following tables present the gross and net fair values of the Company’s derivative instruments recognized on the condensed consolidated balance sheets for the periods presented:
|  | Gross Amounts Recognized |  |  | Gross Amounts Offset in Consolidated Balance Sheet |  |  | Net Amounts Presented on the Consolidated Balane Sheet |
|  | June 30, 2025 |
|  | Gross Amounts Recognized |  |  | Gross Amounts Offset in Consolidated Balance Sheet |  |  | Net Amounts Presented on the Consolidated Balane Sheet |
|  | (In thousands) |
Current derivative assets |  | $ | 16,040 |  |  | $ | (3,327 | ) |  | $ | 12,713 |
Long-term derivative assets |  | $ | 8,286 |  |  | $ | (2,305 | ) |  | $ | 5,981 |
|  | Gross Amounts Recognized |  |  | Gross Amounts Offset in Consolidated Balance Sheet |  |  | Net Amounts Presented on the Consolidated Balane Sheet |
|  | December 31, 2024 |
|  | Gross Amounts Recognized |  |  | Gross Amounts Offset in Consolidated Balance Sheet |  |  | Net Amounts Presented on the Consolidated Balane Sheet |
|  | (In thousands) |
Current derivative liabilities |  | $ | (2,446 | ) |  | $ | — |  |  | $ | (2,446 | )
Long-term derivative liabilities |  | $ | (1,949 | ) |  | $ | — |  |  | $ | (1,949 | )
The following table presents the components of realized gain on derivatives and unrealized gain on derivatives reflected on the accompanying consolidated statements of operations and cash flows for the periods presented:
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
|  | (In thousands) |
Cash received (paid) for derivative settlements, net: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Crude oil |  | $ | 4,150 |  |  | $ | — |  |  | $ | 3,630 |  |  | $ | — |
Natural gas |  |  | 1,223 |  |  |  | — |  |  |  | 961 |  |  |  | — |
NGLs |  |  | (429 | ) |  |  | — |  |  |  | (429 | ) |  |  | — |
Total cash received for derivative settlements, net: |  | $ | 4,944 |  |  | $ | — |  |  | $ | 4,162 |  |  | $ | — |
Non-cash gain (loss) on derivatives: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Crude oil |  | $ | 22,332 |  |  | $ | — |  |  | $ | 23,406 |  |  | $ | — |
Natural gas |  |  | 3,375 |  |  |  | — |  |  |  | 2,185 |  |  |  | — |
NGLs |  |  | (2,501 | ) |  |  | — |  |  |  | (2,501 | ) |  |  | — |
Total non-cash gain on derivatives |  |  | 23,206 |  |  |  | — |  |  |  | 23,090 |  |  |  | — |
Total gain on derivatives, net |  | $ | 28,149 |  |  | $ | — |  |  | $ | 27,252 |  |  | $ | — |

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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/exampleRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 182 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480401/815-10-55-182 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 185 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480401/815-10-55-185 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 184 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480401/815-10-55-184 Reference 4: http://www.xbrl.org/2003/role/exampleRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 181 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480401/815-10-55-181 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (a)(5) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4H -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4H Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4H -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4H Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 15 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480960/815-15-50-3 Reference 13: http://www.xbrl.org/2003/role/exampleRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 183 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480401/815-10-55-183 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (a)(4) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (a)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4I -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4I Reference 18: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4F -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4F Reference 19: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-2 Reference 20: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-2 Reference 21: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(1)(iii) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-2 Reference 22: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(1)(ii) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-2 Reference 23: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(1)(i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-2 Reference 24: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-1B Reference 25: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-1A Reference 26: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1A -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-1A Reference 27: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1A -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-1A Reference 28: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-1A Reference 29: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/815/tableOfContent Reference 30: 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 31: 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 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration