| Derivative Instruments |
Note 5. Derivative Instruments From time to time the Company enters into derivative contracts to economically hedge against the variability in cash flows associated with future sales of production. The Company recognizes its derivative instruments on the balance sheet as either assets or liabilities measured at fair value. The estimated fair value is based upon various factors as described in Note 6. Fair Value Measurements. At June 30, 2025 the Company had outstanding derivative contracts as set forth in the tables below.
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Natural gas derivatives |
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Weighted Average Hedge Price ($/MMBtu) |
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Period and Type of Contract |
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Average Volumes Hedged |
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Swaps |
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Floor |
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Ceiling |
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July 2025 - March 2026 |
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Collars - Henry Hub |
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304,000 |
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MMBtus/day |
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$ |
4.25 |
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$ |
5.99 |
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July 2025 - December 2025 |
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Swaps - Henry Hub |
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580,000 |
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MMBtus/day |
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$ |
3.95 |
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January 2026 - December 2026 |
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Swaps - Henry Hub |
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737,000 |
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MMBtus/day |
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$ |
4.13 |
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January 2027 - December 2027 |
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Swaps - Henry Hub |
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647,000 |
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MMBtus/day |
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$ |
3.94 |
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Crude oil derivatives |
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Weighted Average Hedge Price ($/Bbl) |
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Period and Type of Contract |
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Average Volumes Hedged |
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Roll Swaps |
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Fixed Swaps |
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Floor |
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Ceiling |
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July 2025 - December 2025 |
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Fixed Swaps - WTI |
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59,000 |
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Bbls/day |
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$ |
70.63 |
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Collars - WTI |
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55,000 |
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Bbls/day |
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$ |
60.00 |
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$ |
68.27 |
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Roll Swaps - NYMEX |
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53,000 |
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Bbls/day |
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$ |
0.95 |
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January 2026 - December 2026 |
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Fixed Swaps - WTI |
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55,000 |
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Bbls/day |
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$ |
62.17 |
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Collars - WTI |
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33,000 |
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Bbls/day |
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$ |
60.00 |
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$ |
69.38 |
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January 2027 - December 2027 |
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Fixed Swaps - WTI |
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19,000 |
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Bbls/day |
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$ |
64.52 |
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Derivative gains and losses Cash receipts and payments in the following table reflect the gains or losses on derivative contracts which matured during the applicable period, calculated as the difference between the contract price and the market settlement price of matured contracts. The Company's derivative contracts are settled based upon reported settlement prices on commodity exchanges, with crude oil derivative settlements based on NYMEX West Texas Intermediate (“WTI”) pricing and natural gas derivative settlements based primarily on NYMEX Henry Hub pricing. Non-cash gains and losses below represent the change in fair value of derivative instruments which continued to be held at period end and the reversal of previously recognized non-cash gains or losses on derivative contracts that matured during the period.
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Three months ended June 30, |
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Six months ended June 30, |
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In thousands |
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2025 |
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2024 |
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2025 |
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2024 |
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Cash received (paid) on derivatives: |
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Crude oil fixed price swaps |
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$ |
36,878 |
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$ |
(19,677 |
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$ |
46,130 |
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$ |
(14,848 |
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Crude oil collars |
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(28 |
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— |
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(28 |
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— |
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Crude oil NYMEX roll swaps |
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1,722 |
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(440 |
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2,391 |
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2,033 |
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Natural gas WAHA swaps |
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— |
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17,898 |
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— |
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26,922 |
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Natural gas fixed price swaps |
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27,208 |
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89,677 |
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34,139 |
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152,478 |
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Natural gas collars |
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22,453 |
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— |
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22,453 |
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16,069 |
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Cash received on derivatives, net |
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88,233 |
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87,458 |
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105,085 |
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182,654 |
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Non-cash gain (loss) on derivatives: |
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Crude oil fixed price swaps |
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116,525 |
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33,569 |
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106,975 |
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(167,480 |
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Crude oil collars |
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89,347 |
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— |
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41,782 |
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— |
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Crude oil NYMEX roll swaps |
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(4,258 |
) |
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1,578 |
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(391 |
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(8,676 |
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Natural gas WAHA swaps |
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— |
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(12,846 |
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— |
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(13,175 |
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Natural gas fixed price swaps |
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123,931 |
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(105,030 |
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(163,234 |
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(89,865 |
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Natural gas collars |
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37,476 |
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— |
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45,035 |
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(11,923 |
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Non-cash gain (loss) on derivatives, net |
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363,021 |
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(82,729 |
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30,167 |
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(291,119 |
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Gain (loss) on derivative instruments, net |
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$ |
451,254 |
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$ |
4,729 |
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$ |
135,252 |
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$ |
(108,465 |
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Balance sheet offsetting of derivative assets and liabilities The Company’s derivative contracts are recorded at fair value in the condensed consolidated balance sheets under the captions “Derivative assets,” “Derivative assets, noncurrent,” “Derivative liabilities,” and “Derivative liabilities, noncurrent” as applicable. Derivative assets and liabilities with the same counterparty that are subject to contractual terms which provide for net settlement are reported on a net basis in the consolidated balance sheets. The following table presents the gross amounts of recognized derivative assets and liabilities, as applicable, the amounts offset under netting arrangements with counterparties, and the resulting net amounts presented in the consolidated balance sheets for the periods presented, all at fair value.
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In thousands |
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June 30, 2025 |
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December 31, 2024 |
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Commodity derivative assets: |
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Gross amounts of recognized assets |
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$ |
250,892 |
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$ |
168,023 |
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Gross amounts offset on balance sheet |
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(21,602 |
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(10,370 |
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Net amounts of assets on balance sheet |
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229,290 |
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157,653 |
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Commodity derivative liabilities: |
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Gross amounts of recognized liabilities |
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(63,215 |
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(10,513 |
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Gross amounts offset on balance sheet |
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21,602 |
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10,370 |
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Net amounts of liabilities on balance sheet |
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$ |
(41,613 |
) |
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$ |
(143 |
) |
The following table reconciles the net amounts disclosed above to the individual financial statement line items in the condensed consolidated balance sheets.
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In thousands |
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June 30, 2025 |
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December 31, 2024 |
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Derivative assets |
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$ |
185,443 |
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$ |
95,227 |
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Derivative assets, noncurrent |
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43,847 |
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62,426 |
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Net amounts of assets on balance sheet |
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229,290 |
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157,653 |
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Derivative liabilities |
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(391 |
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— |
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Derivative liabilities, noncurrent |
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(41,222 |
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(143 |
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Net amounts of liabilities on balance sheet |
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(41,613 |
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(143 |
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Total derivative assets, net |
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$ |
187,677 |
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$ |
157,510 |
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