v3.25.2
Fair Value Measurements
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements

Note 6. Fair Value Measurements

The Company's derivative instruments are reported at fair value on a recurring basis. In determining the fair values of swap contracts, a discounted cash flow method is used due to the unavailability of relevant comparable market data for the Company’s exact contracts. The discounted cash flow method estimates future cash flows based on quoted market prices for forward commodity prices and a risk-adjusted discount rate. The fair values of swap contracts are calculated mainly using significant observable inputs (Level 2). Calculation of the fair values of collars requires the use of an industry-standard option pricing model that considers various inputs including quoted forward prices for commodities, time value, volatility factors, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. These assumptions are observable in the marketplace or can be corroborated by active markets or broker quotes and are therefore designated as Level 2 within the valuation hierarchy. The Company’s calculation of fair value for each of its derivative positions is compared to the counterparty valuation for reasonableness.

The following tables summarize the valuation of derivative instruments by pricing levels that were accounted for at fair value on a recurring basis as of June 30, 2025 and December 31, 2024.

 

 

Fair value measurements at June 30, 2025 using:

 

 

 

 

In thousands

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Derivative assets (liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

Crude oil fixed price swaps

 

$

—

 

 

$

119,507

 

 

$

—

 

 

$

119,507

 

Crude oil collars

 

 

—

 

 

 

41,782

 

 

 

—

 

 

 

41,782

 

Crude oil NYMEX roll swaps

 

 

—

 

 

 

(391

)

 

 

—

 

 

 

(391

)

Natural gas fixed price swaps

 

 

—

 

 

 

(18,256

)

 

 

—

 

 

 

(18,256

)

Natural gas collars

 

 

—

 

 

 

45,035

 

 

 

—

 

 

 

45,035

 

Total

 

$

—

 

 

$

187,677

 

 

$

—

 

 

$

187,677

 

 

 

Fair value measurements at December 31, 2024 using:

 

 

 

 

In thousands

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Derivative assets:

 

 

 

 

 

 

 

 

 

 

 

 

Crude oil fixed price swaps

 

$

—

 

 

$

12,533

 

 

$

—

 

 

$

12,533

 

Natural gas fixed price swaps

 

 

—

 

 

 

144,977

 

 

 

—

 

 

 

144,977

 

Total

 

$

—

 

 

$

157,510

 

 

$

—

 

 

$

157,510