DERIVATIVE INSTRUMENTS AND PRICE RISK MANAGEMENT (Tables)
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6 Months Ended |
Jun. 30, 2025 |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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| Schedule of Non-cash Gains or Losses on Derivative Contracts |
The following table presents settlements on commodity derivative instruments and unsettled gains and losses on open commodity derivative instruments for the periods presented which is recorded in the revenue section of our condensed statements of operations:
| | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended
June 30, | | Six Months Ended
June 30, | | (In thousands) | 2025 | | 2024 | | 2025 | | 2024 | | Cash Received on Settled Derivatives | $ | 60,931 | | | $ | 8,896 | | | $ | 72,993 | | | $ | 28,012 | | | Non-Cash Mark-to-Market Gain (Loss) on Derivatives | 67,888 | | | (12,324) | | | 77,588 | | | (169,972) | | | Gain (Loss) on Commodity Derivatives, Net | $ | 128,819 | | | $ | (3,428) | | | $ | 150,581 | | | $ | (141,959) | |
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| Schedule of Open Commodity Derivative Positions |
The following table summarizes open commodity derivative positions as of June 30, 2025, for commodity derivatives that were entered into through June 30, 2025, for the settlement periods presented:
| | | | | | | | | | | | | | | | | | | | | | | | | | | 2025 | | 2026 | | 2027 | | 2028 | | | | Oil: | | | | | | | | | | | NYMEX WTI - Swaps: | | | | | | | | | | | Volume (Bbl) | 5,965,805 | | | 5,313,057 | | | — | | | — | | | | | Weighted Average Price ($/Bbl) | $ | 72.76 | | | $ | 69.08 | | | $ | — | | | $ | — | | | | NYMEX WTI - Short Swaptions(1): | | | | | | | | | | | Volume (Bbl) | 9,156,450 | | | 22,082,400 | | | 2,196,000 | | | — | | | | | Weighted Average Price ($/Bbl) | $ | 72.12 | | | $ | 69.90 | | | $ | 72.51 | | | $ | — | | | | NYMEX WTI - Long Swaptions(1): | | | | | | | | | | | Volume (Bbl) | 501,875 | | | — | | | — | | | — | | | | | Weighted Average Price ($/Bbl) | $ | 56.25 | | | $ | — | | | $ | — | | | $ | — | | | | | Argus WTI Midland CMA Diff - Basis Swaps: | | | | | | | | | | | Volume (Bbl) | 5,453,710 | | | 5,818,291 | | | 912,500 | | | — | | | | | Weighted Average Price ($/Bbl) | $ | 0.96 | | | $ | 1.05 | | | $ | 1.02 | | | $ | — | | | | NYMEX WTI - Short Call Options(1): | | | | | | | | | | | Volume (Bbl) | 2,191,072 | | | 2,701,365 | | | 4,420,515 | | | 1,921,500 | | | | | Weighted Average Price ($/Bbl) | $ | 80.36 | | | $ | 73.18 | | | $ | 79.17 | | | $ | 70.14 | | | | NYMEX WTI - Long Call Options(1): | | | | | | | | | | | Volume (Bbl) | — | | | 204,424 | | | — | | | — | | | | | Weighted Average Price ($/Bbl) | $ | — | | | $ | 67.50 | | | $ | — | | | $ | — | | | | ICE Brent - Call Options (1): | | | | | | | | | | | Volume (Bbl) | — | | | — | | | — | | | 316,590 | | | | | Weighted Average Price ($/Bbl) | $ | — | | | $ | — | | | $ | — | | | $ | 80.00 | | | | | NYMEX WTI CMA - Collars: | | | | | | | | | | | Collar Put Volume (Bbl) | 3,609,457 | | | 6,253,092 | | | — | | | — | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | Collar Call Volume (Bbl) | 4,583,505 | | | 8,988,307 | | | — | | | — | | | | | Weighted Average Floor Price ($/Bbl) | $ | 69.15 | | | $ | 63.84 | | | $ | — | | | $ | — | | | | | Weighted Average Ceiling Price ($/Bbl) | $ | 77.49 | | | $ | 72.31 | | | $ | — | | | $ | — | | | | | | | | | | | | | | | Natural Gas: | | | | | | | | | | | NYMEX Henry Hub - Swaps: | | | | | | | | | | | Volume (MMBtu) | 18,352,689 | | | 23,815,000 | | | — | | | — | | | | | Weighted-Average Price ($/MMBtu) | $ | 4.08 | | | $ | 4.11 | | | $ | — | | | $ | — | | | | | Waha Gas Daily - Swaps: | | | | | | | | | | | Volume (MMBtu) | 915,000 | | | 1,825,000 | | | 1,825,000 | | | 155,000 | | | | | Weighted Average Price ($/MMBtu) | $ | 3.20 | | | $ | 3.20 | | | $ | 2.98 | | | $ | 2.96 | | | | NYMEX Henry Hub - Short Swaptions (1): | | | | | | | | | | | Volume (MMBtu) | 18,250,000 | | | 23,390,000 | | | 16,470,000 | | | — | | | | | Weighted-Average Price ($/MMBtu) | $ | 4.40 | | | $ | 4.08 | | | $ | 3.97 | | | $ | — | | | | NYMEX Henry Hub - Long Swaptions (1): | | | | | | | | | | | Volume (MMBtu) | — | | | — | | | 7,320,000 | | | — | | | | | Weighted-Average Price ($/MMBtu) | $ | — | | | $ | — | | | $ | 4.00 | | | $ | — | | | | | Waha - Basis Swaps: | | | | | | | | | | | Volume (MMBtu) | 11,901,000 | | | 18,250,000 | | | 3,650,000 | | | — | | | | | Weighted-Average Price ($/MMBtu) | $ | 0.87 | | | $ | (0.84) | | | $ | (0.78) | | | $ | — | | | | | Waha Gas Daily Average vs Henry Hub Last Day | | | | | | | | | | | Volume (MMBtu) | — | | | — | | | 10,020,000 | | | 930,000 | | | | | Weighted Average Price ($/MMBtu) | $ | — | | | $ | — | | | $ | (1.01) | | | $ | (1.01) | | | | | Waha Index Swaps | | | | | | | | | | | Volume (MMBtu) | 12,061,000 | | | 18,560,000 | | | 4,890,000 | | | — | | | | | Weighted Average Price ($/MMBtu) | $ | — | | | $ | — | | | $ | 0.01 | | | $ | — | | | | | TETCO M2 - Basis Swaps: | | | | | | | | | | | Volume (MMBtu) | 10,120,000 | | | 27,375,000 | | | 930,000 | | | — | | | | | Weighted-Average Price ($/MMBtu) | $ | (1.13) | | | $ | (1.00) | | | $ | (1.01) | | | $ | — | | | | | TCO - Basis Swaps: | | | | | | | | | | | Volume (MMBtu) | 920,000 | | | — | | | — | | | — | | | | | Weighted-Average Price ($/MMBtu) | $ | (0.87) | | | $ | — | | | $ | — | | | $ | — | | | | NYMEX Henry Hub - Short Call Options (1): | | | | | | | | | | | Volume (MMBtu) | 5,592,150 | | | 3,239,500 | | | 35,523,000 | | | 6,700,000 | | | | | Weighted-Average Price ($/MMBtu) | $ | 3.73 | | | $ | 6.00 | | | $ | 5.97 | | | $ | 4.50 | | | | | NYMEX Henry Hub - Collars: | | | | | | | | | | | Collar Put Volume (MMBtu) | 19,153,603 | | | 37,352,303 | | | 5,010,000 | | | — | | | | | Collar Call Volume (MMBtu) | 19,153,603 | | | 37,352,303 | | | 5,010,000 | | | — | | | | | Weighted-Average Floor Price ($/MMBtu) | $ | 3.14 | | | $ | 3.37 | | | $ | 3.00 | | | $ | — | | | | | Weighted-Average Ceiling Price ($/MMBtu) | $ | 4.85 | | | $ | 5.03 | | | $ | 3.86 | | | $ | — | | | | | | | | | | | | | | | NGL: | | | | | | | | | | | OPIS - Swaps: | | | | | | | | | | | Volume (Bbl) | 193,200 | | | 376,275 | | | 234,800 | | | — | | | | | Weighted-Average Price ($/Bbl) | $ | 36.54 | | | $ | 33.90 | | | $ | 31.19 | | | $ | — | | | |
______________ (1)Swaptions are crude oil and natural gas derivative contracts that give counterparties the option to extend certain derivative contracts for additional periods. Call Options are crude oil and natural gas derivative contracts sold by the Company that give counterparties the option to exercise certain derivative contracts. The volumes and prices reflected as Swaptions and Call Options in this table will only be effective if the options are exercised by the applicable counterparties.
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| Schedule of Interest Rate Derivatives |
The following table summarizes our open interest rate derivative contracts as of June 30, 2025. | | | | | | | | | | | | | | | | | | | | | | Fixed Rate Swap Agreements | | | Swaps | | Contract Period | | Notional Amount | | Fixed Rate | | Floating Benchmark | | October 1, 2024 - October 1, 2026 | | $ | 25,000,000 | | | 3.423 | % | | USD-SOFR CME | | May 1, 2025 - May 1, 2027 | | $ | 50,000,000 | | | 3.423 | % | | USD-SOFR CME |
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| Schedule of Classification of Outstanding Financial Instruments |
The following table sets forth the amounts, on a gross basis, and classification of the Company’s outstanding derivative financial instruments at June 30, 2025 and December 31, 2024, respectively. Certain amounts may be presented on a net basis in the condensed financial statements when such amounts are with the same counterparty and subject to a master netting arrangement. | | | | | | | | | | | | | | | | | | | | | | (In thousands) | | | | | | | | Type of Commodity | | Balance Sheet Location | | June 30, 2025 Estimated Fair Value | | December 31, 2024 Estimated Fair Value | | Derivative Assets: | | | | | | | | Commodity Price Swap Contracts | | Current Assets | | $ | 89,573 | | | $ | 49,031 | | | Commodity Basis Swap Contracts | | Current Assets | | 26,828 | | | 21,419 | | | Commodity Price Swaptions Contracts | | Current Assets | | 1,611 | | | 5,398 | | | Commodity Price Collar Contracts | | Current Assets | | 65,430 | | | 46,839 | | | Commodity Price Call Option Contracts | | Current Assets | | 563 | | | 2,289 | | | Commodity Price Index Swap Contracts | | Current Assets | | 396 | | | — | | | Interest Rate Swap Contracts | | Current Assets | | 284 | | | 160 | | | Commodity Price Swap Contracts | | Noncurrent Assets | | 22,398 | | | 8,710 | | | Commodity Basis Swap Contracts | | Noncurrent Assets | | 10,400 | | | 16,513 | | | Commodity Price Swaptions Contracts | | Noncurrent Assets | | 1,633 | | | — | | | Commodity Price Collar Contracts | | Noncurrent Assets | | 27,397 | | | 35,652 | | | Commodity Price Call Option Contracts | | Noncurrent Assets | | 912 | | | — | | | Commodity Price Index Swap Contracts | | Noncurrent Assets | | 335 | | | — | | | Interest Rate Swap Contracts | | Noncurrent Assets | | — | | | 103 | | | Total Derivative Assets | | | | $ | 247,760 | | | $ | 186,114 | | | | | | | | | | Derivative Liabilities: | | | | | | | | Commodity Price Swap Contracts | | Current Liabilities | | $ | (7,043) | | | $ | (3,667) | | | Commodity Basis Swap Contracts | | Current Liabilities | | (3,101) | | | (5,150) | | | Commodity Price Swaptions Contracts | | Current Liabilities | | (10,565) | | | (44,174) | | | Commodity Price Collar Contracts | | Current Liabilities | | (28,271) | | | (29,668) | | | Commodity Price Call Option Contracts | | Current Liabilities | | (7,571) | | | (15,867) | | | Commodity Price Index Swap Contracts | | Current Liabilities | | (1,328) | | | — | | | | | | | | | | Commodity Price Swap Contracts | | Noncurrent Liabilities | | (5,609) | | | (3,852) | | | Commodity Basis Swap Contracts | | Noncurrent Liabilities | | (3,927) | | | (2,564) | | | Commodity Price Swaptions Contracts | | Noncurrent Liabilities | | (88,235) | | | (44,315) | | | Commodity Price Collar Contracts | | Noncurrent Liabilities | | (25,374) | | | (36,327) | | | Commodity Price Call Option Contracts | | Noncurrent Liabilities | | (45,919) | | | (57,693) | | | Commodity Price Index Swap Contracts | | Noncurrent Liabilities | | (372) | | | — | | | Interest Rate Swap Contracts | | Noncurrent Liabilities | | (164) | | | — | | | Total Derivative Liabilities | | | | $ | (227,479) | | | $ | (243,278) | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | Estimated Fair Value at June 30, 2025 | | (In thousands) | Gross Amounts of
Recognized Assets (Liabilities) | | Gross Amounts Offset
on the Balance Sheet | | Net Amounts of Assets (Liabilities) Presented on the Balance Sheet | | Offsetting of Derivative Assets: | | | | Current Assets | $ | 187,099 | | | $ | (77,818) | | | $ | 109,281 | | | Non-Current Assets | 60,661 | | | $ | (59,350) | | | 1,311 | | | Total Derivative Assets | $ | 247,760 | | | $ | (137,168) | | | $ | 110,592 | | | | | | | | | Offsetting of Derivative Liabilities: | | | | Current Liabilities | $ | (81,942) | | | $ | 77,818 | | | $ | (4,124) | | | Non-Current Liabilities | (145,537) | | | 59,350 | | | (86,187) | | | Total Derivative Liabilities | $ | (227,479) | | | $ | 137,168 | | | $ | (90,311) | |
| | | | | | | | | | | | | | | | | | | | Estimated Fair Value at December 31, 2024 | | (In thousands) | Gross Amounts of
Recognized Assets (Liabilities) | | Gross Amounts Offset
on the Balance Sheet | | Net Amounts of Assets (Liabilities) Presented on the Balance Sheet | | Offsetting of Derivative Assets: | | | | Current Assets | $ | 125,137 | | | $ | (78,612) | | | $ | 46,525 | | | Non-Current Assets | 60,977 | | | $ | (51,145) | | | 9,832 | | | Total Derivative Assets | $ | 186,114 | | | $ | (129,757) | | | $ | 56,357 | | | | | | | | | Offsetting of Derivative Liabilities: | | | | Current Liabilities | $ | (98,527) | | | $ | 78,612 | | | $ | (19,915) | | | Non-Current Liabilities | (144,751) | | | 51,145 | | | (93,606) | | | Total Derivative Liabilities | $ | (243,278) | | | $ | 129,757 | | | $ | (113,521) | |
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