Our policy is to consider hedging a portion of our production at commodity prices the general partner deems attractive. While there is a risk we may not be able to realize the benefit of rising prices, the general partner may enter into hedging agreements because of the benefits of predictable, stable cash flows.

We periodically enter futures contracts, energy swaps, swaptions and basis swaps to hedge our exposure to price fluctuations on crude oil, natural gas liquids and natural gas sales. When actual commodity prices exceed the fixed price provided by these contracts we pay this excess to the counterparty, and when the commodity prices are below the contractually provided fixed price, we receive this difference from the counterparty. We also enter costless price collars, which set a ceiling and floor price to hedge our exposure to price fluctuations on natural gas sales. When actual commodity prices exceed the ceiling price provided by these contracts we pay this excess to the counterparty, and when the commodity prices are below the floor price, we receive this difference from the counterparty. If the actual commodity price falls in between the ceiling and floor price, there is no cash settlement.

We have entered into crude oil futures contracts and swap agreements that effectively fix prices for the production and periods shown below. Prices to be realized for hedged production may be less than these fixed prices because of location, quality and other adjustments. See Note 9.


Production Period	Bbls per Day	Weighted Average NYMEX Price per Bbl
April 2025—December 2025	6,000	$	67.39
January 2026—June 2026	3,000	$	70.57
July 2026—September 2026	2,000	$	70.49
October 2026—December 2026	375	$	64.16

Net settlements on oil futures and sell basis swap contracts increased oil revenues by $0.1 million in the first three months of 2025 and decreased oil revenues by $2.5 million in the first three months of 2024. An unrealized gain increased

We have entered into natural gas liquids futures contracts and swap agreements for ethane that effectively fix prices for the production and periods shown below. Prices to be realized for hedged production may be less than these fixed prices because of location, quality and other adjustments. See Note 9.

Net settlements on NGL futures contracts had no impact on NGL revenues in the first three months of 2025 and increased NGL revenues by $0.2 million in the first three months of 2024. An unrealized loss decreased NGL revenues by $0.0 million in the first three months of 2025 and $0.2 million in the first three months of 2024.

We have entered into natural gas futures contracts and swap agreements that effectively fix prices for the production and periods shown below. Prices to be realized for hedged production may be less than these fixed prices because of location, quality and other adjustments. See Note 9.


Production Period	MMBtu per Day	Weighted Average NYMEX Price per MMBtu
April 2025—March 2026	50,000	$	3.21
April 2026—September 2026	35,000	$	3.25
October 2026—December 2026	42,500	$	3.90
January 2027—March 2027	42,500	$	4.36

The price we receive for our gas production is generally less than the NYMEX price because of adjustments for delivery location (“basis”), relative quality and other factors. We have entered sell basis swap agreements that effectively fix the basis adjustment for the San Juan Basin delivery location for the production and periods shown below.

Net settlements on gas futures and sell basis swap contracts decreased gas revenues by $2.0 million in the first three months of 2025 and increased gas revenues by $1.9 million in the first three months of 2024. An unrealized loss to record the fair value of derivative contracts decreased gas revenues by $10.6 million in the first three months of 2025 and $0.2 million in the first three months of 2024.