v3.25.2
Fair value measurements
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair value measurements Fair value measurements
See the beginning of Note 12 in the 2024 Annual Report for information about the fair value hierarchy levels.
Fair value measurement on a recurring basis
See Note 8 and 16 for further discussion of the Company's derivatives.
Balance sheet presentation
The following tables present the Company's derivatives by (i) balance sheet classification, (ii) derivative type and (iii) fair value hierarchy level, and provide a total, on a gross basis and a net basis reflected in "Derivatives" on the consolidated balance sheets as of the dates presented:
June 30, 2025
(in thousands)Level 1Level 2Level 3Total gross fair valueAmounts offsetNet fair value presented on the consolidated balance sheets
Assets:
Current:
Commodity$— $142,864 $— $142,864 $(13,529)$129,335 
Contingent consideration— — 109 109 — 109 
Noncurrent:
Commodity— 15,410 — 15,410 (7,366)8,044 
Contingent consideration— — 25,121 25,121 — 25,121 
Liabilities:
Current:
Commodity— (13,529)— (13,529)13,529 — 
Noncurrent:
Commodity— (26,832)— (26,832)7,366 (19,466)
Net derivative asset (liability) positions$— $117,913 $25,230 $143,143 $— $143,143 
December 31, 2024
(in thousands)Level 1Level 2Level 3Total gross fair valueAmounts offsetNet fair value presented on the consolidated balance sheets
Assets:
Current:
Commodity$— $98,825 $— $98,825 $2,638 $101,463 
Contingent consideration— — 11 11 — 11 
Noncurrent:
Commodity— 28,126 — 28,126 (9,866)18,260 
Contingent consideration— — 16,304 16,304 — 16,304 
Liabilities:
Current:
Commodity— 2,638 — 2,638 (2,638)— 
Noncurrent:
Commodity— (15,680)— (15,680)9,866 (5,814)
Net derivative asset (liability) positions$— $113,909 $16,315 $130,224 $— $130,224 
See Note 12 in the 2024 Annual Report for discussion of the significant inputs used in the fair value mark-to-market analysis of commodity and contingent consideration derivatives. The Company reviewed the third-party specialist's valuations of commodity and contingent consideration derivatives, including the related inputs, and analyzed changes in fair values between reporting dates.
The Sixth Street Contingent Consideration is categorized as Level 3 in the fair value hierarchy, as the Company provided cash flow projections to a third-party valuation specialist to determine the fair value. The Company reviewed the third-party specialist's valuation, including the related inputs, and analyzed changes in fair values between the divestiture closing date and the reporting dates. The fair value at the closing date of the Sixth Street Contingent Consideration was recorded as part of the basis in the oil and natural gas properties divested and as a contingent consideration asset. At each quarterly reporting period, the Company remeasures contingent consideration with the change in fair values recognized in "Gain (loss) on derivatives, net" under "Non-operating income (expense)" on the consolidated statement of operations. See Note 8 for additional discussion of the Sixth Street Contingent Consideration.
The following table summarizes the changes in contingent consideration derivatives classified as Level 3 measurements for the periods presented:
Three months ended June 30,Six months ended June 30,
(in thousands)2025202420252024
Balance of Level 3 at beginning of period$7,808 $34,794 $16,315 $31,106 
Change in Sixth Street Contingent Consideration fair value17,422 (1,767)8,915 1,921 
Balance of Level 3 at end of period$25,230 $33,027 $25,230 $33,027 
Items not accounted for at fair value
The carrying amounts reported on the consolidated balance sheets for cash and cash equivalents, accounts receivable, accounts payable, accrued capital expenditures, undistributed revenue and royalties and other accrued assets and liabilities approximate their fair values.
The Company has not elected to account for its debt instruments at fair value. The following table presents the carrying amounts and fair values of the Company's debt as of the dates presented:
 June 30, 2025December 31, 2024
(in thousands)
Carrying
amount(1)
Fair
value(2)
Carrying
amount(1)
Fair
value(2)
Debt$2,345,578 $2,139,443 $2,480,578 $2,455,032 
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(1)Amounts presented do not include issuance premiums or discounts.
(2)The fair values of the outstanding notes were determined using the Level 2 fair value hierarchy quoted market prices for each respective instrument as of June 30, 2025 and December 31, 2024. The fair values of the outstanding amounts under the Senior Secured Credit Facility approximate the carrying values based on short-term floating interest rates available to the Company as of June 30, 2025 and December 31, 2024.