v3.25.1
DERIVATIVES
 3 Months Ended
Mar. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES DERIVATIVES
We periodically enter into commodity derivative contracts to mitigate a portion of our exposure to potentially adverse market changes in commodity prices for our expected future crude oil and natural gas production and the associated impact on cash flows. Our commodity derivative contracts consist of swaps, collars, and basis protection swaps. As of March 31, 2025, all derivative counterparties were members of the Credit Facility lender group, and all commodity derivative contracts are entered into for other-than-trading purposes. We do not designate our commodity derivative contracts as hedging instruments.
A typical swap arrangement guarantees a fixed price on contracted volumes. If the agreed upon published third-party index price (“index price”) is lower than the fixed contract price at the time of settlement, we receive the difference between the
index price and the fixed contract price. If the index price is higher than the fixed contact price at the time of settlement, we pay the difference between the index price and the fixed contract price.
A typical collar arrangement establishes a floor and ceiling price on contracted volumes through the use of a short call and a long put. When the index price is above the ceiling price at the time of settlement, we pay the difference between the index price and the ceiling price. When the index price is below the floor price at the time of settlement, we receive the difference between the index price and floor price. When the index price is between the floor price and ceiling price, no payment or receipt occurs.
Basis protection swaps are arrangements that guarantee a price differential from a specified delivery point. For basis protection swaps, we receive a payment from the counterparty if the price differential is greater than the stated terms of the contract and pay the counterparty if the price differential is less than the stated terms of the contract.
The following table summarizes the components of the derivative gain (loss), net presented on the accompanying statements of operations for the periods below (in millions):
 Three Months Ended March 31,
20252024
Derivative cash settlement gain (loss), net
Crude oil contracts$1 $(11)
Natural gas contracts3 — 
Total derivative cash settlement gain (loss), net
4 (11)
Change in fair value gain (loss)48 (99)
Total derivative gain (loss), net
$52 $(110)
As of March 31, 2025, we had entered into the following commodity price derivative contracts:
Contract Period
Q2 2025Q3 2025Q4 2025Q1 2026Q2 2026Q3 2026Q4 2026
Crude Oil Derivatives (volumes in Bbl/day and prices in $/Bbl)
Swaps
NYMEX WTI Volumes29,00037,70061,70033,000———
Weighted-Average Contract Price$70.71 $71.69 $66.12 $68.28 $— $— $— 
Collars
NYMEX WTI Volumes42,00038,00010,00010,000———
Weighted-Average Ceiling Price$76.79 $76.59 $73.62 $77.13 $— $— $— 
Weighted-Average Floor Price$67.52 $66.86 $60.00 $60.00 $— $— $— 
Natural Gas Derivatives (volumes in MMBtu/day and prices in $/MMBtu)
Swaps
NYMEX HH Volumes180,000180,000180,00050,00050,00050,00050,000
Weighted-Average Contract Price$3.74 $3.74 $3.74 $4.41 $4.41 $4.41 $4.41 
Collars
NYMEX HH Volumes20,00020,00020,000140,000140,000140,000140,000
Weighted-Average Ceiling Price$3.76 $3.76 $3.76 $4.09 $4.09 $4.09 $4.09 
Weighted-Average Floor Price$3.03 $3.03 $3.03 $3.29 $3.29 $3.29 $3.29 
Basis Protection Swaps
Waha Basis Volumes140,000140,000140,000130,000130,000130,000130,000
Weighted-Average Contract Price$(1.32)$(1.32)$(1.32)$(1.31)$(1.31)$(1.31)$(1.31)
CIG Basis Volumes$46,703 $50,000 $50,000 $60,000 $60,000 $60,000 $60,000 
Weighted-Average Contract Price$(0.85)$(0.87)$(0.87)$(0.58)$(0.58)$(0.58)$(0.58)
Subsequent to March 31, 2025 and as of May 2, 2025, we had entered into the following commodity price derivative contracts:
Contract Period
Q2 2025Q3 2025Q4 2025Q1 2026Q2 2026Q3 2026Q4 2026
Crude Oil Derivatives (volumes in Bbl/day and prices in $/Bbl)
Swaps
NYMEX WTI Volumes————9,000——
Weighted-Average Contract Price$— $— $— $— $60.67 $— $— 
Collars
NYMEX WTI Volumes2,0002,0002,000————
Weighted-Average Ceiling Price$75.60 $75.60 $75.60 $— $— $— $— 
Weighted-Average Floor Price$60.00 $60.00 $60.00 $— $— $— $— 
Natural Gas Derivatives (volumes in MMBtu/day and prices in $/MMBtu)
Swaps
NYMEX HH Volumes13,29730,00030,000————
Weighted-Average Contract Price$4.27 $4.19 $4.19 $— $— $— $— 
Collars
NYMEX HH Volumes6,70310,00010,00020,00020,00020,00020,000
Weighted-Average Ceiling Price$4.73 $4.73 $4.73 $4.89 $4.89 $4.89 $4.89 
Weighted-Average Floor Price$4.25 $4.25 $4.25 $4.00 $4.00 $4.00 $4.00 
Basis Protection Swaps
CIG Basis Volumes20,00040,00040,00020,00020,00020,00020,000
Weighted-Average Contract Price$(1.02)$(0.97)$(0.97)$(0.62)$(0.62)$(0.62)$(0.62)
Derivative Assets and Liabilities Fair Value 
Our commodity price derivatives are measured at fair value and are included in the accompanying balance sheets as derivative assets and liabilities. The following table contains a summary of all our derivative positions reported on the accompanying balance sheets as well as a reconciliation between the gross assets and liabilities and the potential effects of master netting arrangements on the fair value of our commodity derivative contracts as of March 31, 2025, and December 31, 2024 (in millions):
March 31, 2025December 31, 2024
Derivative Assets: 
Commodity contracts - current$135 $67 
Commodity contracts - noncurrent57 17 
Total derivative assets192 84 
Amounts not offset in the accompanying balance sheets(37)(27)
Total derivative assets, net$155 $57 
Derivative Liabilities:  
Commodity contracts - current$(78)$(22)
Commodity contracts - long-term(19)(13)
Total derivative liabilities(97)(35)
Amounts not offset in the accompanying balance sheets37 27 
Total derivative liabilities, net$(60)$(8)