Derivative Instruments and Hedging Activities (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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| Notional Volume of Commodity Hedges |
At June 30, 2025, the notional volumes of our commodity derivative contracts were:
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Commodity |
Instrument |
Unit |
2025 |
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2026 |
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2027 |
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2028 |
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Natural Gas |
Swaps |
MMBtu/d |
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81,584 |
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81,604 |
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44,508 |
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11,047 |
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Natural Gas |
Basis Swaps |
MMBtu/d |
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568,668 |
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368,459 |
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288,329 |
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100,000 |
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NGL |
Swaps |
Bbl/d |
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44,183 |
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31,685 |
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15,863 |
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3,944 |
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NGL |
Futures |
Bbl/d |
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35,793 |
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4,726 |
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— |
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— |
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Condensate |
Swaps |
Bbl/d |
|
8,023 |
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8,249 |
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2,381 |
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|
592 |
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| Fair Values of Derivative Instruments |
The following table reflects the fair value of our derivative instruments and their location on our Consolidated Balance Sheets as of the periods presented:
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Fair Value as of June 30, 2025 |
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Fair Value as of December 31, 2024 |
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Balance Sheet |
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Derivative |
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Derivative |
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Derivative |
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Derivative |
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Location |
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Assets |
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Liabilities |
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Assets |
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Liabilities |
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Derivatives designated as hedging instruments |
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Commodity contracts |
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Current |
|
$ |
67.0 |
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$ |
(17.3 |
) |
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$ |
50.8 |
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$ |
(29.0 |
) |
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Long-term |
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16.4 |
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(17.4 |
) |
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20.8 |
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(11.7 |
) |
Total derivatives designated as hedging instruments |
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$ |
83.4 |
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$ |
(34.7 |
) |
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$ |
71.6 |
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$ |
(40.7 |
) |
Derivatives not designated as hedging instruments |
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Commodity contracts |
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Current |
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$ |
11.3 |
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$ |
(137.3 |
) |
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$ |
11.0 |
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$ |
(138.3 |
) |
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Long-term |
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9.8 |
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(55.3 |
) |
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4.5 |
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(80.3 |
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Total derivatives not designated as hedging instruments |
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$ |
21.1 |
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$ |
(192.6 |
) |
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$ |
15.5 |
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$ |
(218.6 |
) |
Total current position |
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$ |
78.3 |
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$ |
(154.6 |
) |
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$ |
61.8 |
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$ |
(167.3 |
) |
Total long-term position |
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26.2 |
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(72.7 |
) |
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25.3 |
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(92.0 |
) |
Total derivatives |
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$ |
104.5 |
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$ |
(227.3 |
) |
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$ |
87.1 |
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$ |
(259.3 |
) |
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| Pro Forma Impact of Derivatives Net in Consolidated Balance Sheet |
The following tables reflect the pro forma impact of reporting derivatives on our Consolidated Balance Sheets on a net basis as of the periods presented:
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Gross Presentation |
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Pro Forma Net Presentation |
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June 30, 2025 |
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Asset |
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Liability |
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Collateral |
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Asset |
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Liability |
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Current Position |
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Counterparties with offsetting positions or collateral |
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$ |
75.7 |
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$ |
(154.6 |
) |
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$ |
14.6 |
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$ |
19.8 |
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$ |
(84.1 |
) |
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Counterparties without offsetting positions - assets |
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2.6 |
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— |
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— |
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2.6 |
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— |
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Counterparties without offsetting positions - liabilities |
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— |
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— |
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— |
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— |
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— |
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78.3 |
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(154.6 |
) |
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14.6 |
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22.4 |
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(84.1 |
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Long-Term Position |
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Counterparties with offsetting positions or collateral |
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26.2 |
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(70.7 |
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(2.2 |
) |
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6.3 |
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(53.0 |
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Counterparties without offsetting positions - assets |
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— |
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— |
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— |
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— |
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— |
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Counterparties without offsetting positions - liabilities |
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— |
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(2.0 |
) |
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— |
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— |
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(2.0 |
) |
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26.2 |
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(72.7 |
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(2.2 |
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6.3 |
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(55.0 |
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Total Derivatives |
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Counterparties with offsetting positions or collateral |
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101.9 |
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(225.3 |
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12.4 |
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26.1 |
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(137.1 |
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Counterparties without offsetting positions - assets |
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2.6 |
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— |
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— |
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2.6 |
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— |
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Counterparties without offsetting positions - liabilities |
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— |
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(2.0 |
) |
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— |
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— |
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(2.0 |
) |
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$ |
104.5 |
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$ |
(227.3 |
) |
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$ |
12.4 |
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$ |
28.7 |
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$ |
(139.1 |
) |
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Gross Presentation |
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Pro Forma Net Presentation |
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December 31, 2024 |
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Asset |
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Liability |
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Collateral |
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Asset |
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Liability |
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Current Position |
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Counterparties with offsetting positions or collateral |
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$ |
61.7 |
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$ |
(167.3 |
) |
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$ |
37.1 |
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$ |
9.2 |
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$ |
(77.7 |
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Counterparties without offsetting positions - assets |
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0.1 |
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— |
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— |
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0.1 |
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— |
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Counterparties without offsetting positions - liabilities |
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— |
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— |
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— |
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— |
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— |
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61.8 |
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(167.3 |
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37.1 |
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9.3 |
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(77.7 |
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Long-Term Position |
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Counterparties with offsetting positions or collateral |
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24.2 |
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(91.5 |
) |
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9.0 |
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4.2 |
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(62.5 |
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Counterparties without offsetting positions - assets |
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1.1 |
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— |
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— |
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1.1 |
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— |
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Counterparties without offsetting positions - liabilities |
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— |
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(0.5 |
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— |
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— |
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(0.5 |
) |
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25.3 |
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(92.0 |
) |
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9.0 |
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5.3 |
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(63.0 |
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Total Derivatives |
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Counterparties with offsetting positions or collateral |
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85.9 |
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(258.8 |
) |
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46.1 |
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13.4 |
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(140.2 |
) |
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Counterparties without offsetting positions - assets |
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1.2 |
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— |
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— |
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1.2 |
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— |
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Counterparties without offsetting positions - liabilities |
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— |
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(0.5 |
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— |
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— |
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(0.5 |
) |
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$ |
87.1 |
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$ |
(259.3 |
) |
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$ |
46.1 |
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$ |
14.6 |
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$ |
(140.7 |
) |
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| Amounts Recorded in Other Comprehensive Income (Loss) ("OCI") and Amounts Reclassified from OCI to Revenue |
The following tables reflect amounts recorded in Other comprehensive income (loss) (“OCI”) and amounts reclassified from OCI to revenue:
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Gain (Loss) Recognized in OCI on
Derivatives (Effective Portion) |
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Derivatives in Cash Flow |
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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Hedging Relationships |
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2025 |
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2024 |
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2025 |
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2024 |
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Commodity contracts |
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$ |
75.8 |
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$ |
3.0 |
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$ |
42.0 |
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$ |
(67.2 |
) |
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Gain (Loss) Reclassified from OCI into
Income (Effective Portion) |
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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Location of Gain (Loss) |
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2025 |
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2024 |
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2025 |
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2024 |
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Revenues |
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$ |
27.7 |
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$ |
32.2 |
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$ |
21.6 |
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$ |
29.0 |
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| Gain (Loss) Recognized in Income on Derivatives |
The use of mark-to-market accounting for financial assets and liabilities (“financial instruments”) can cause non-cash earnings volatility due to changes in the underlying commodity price indices. For the three months ended June 30, 2025, we had net unrealized mark-to-market gains primarily driven by favorable movements in natural gas forward basis curves. For the six months ended June 30, 2025, we had net unrealized mark-to-market losses primarily driven by unfavorable movements in natural gas forward basis curves.
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Location of Gain (Loss) |
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Gain (Loss) Recognized in Income on Derivatives |
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Derivatives Not Designated |
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Recognized in Income on |
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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as Hedging Instruments |
|
Derivatives |
|
2025 |
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2024 |
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|
2025 |
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2024 |
|
Commodity contracts |
|
Revenue |
|
$ |
206.2 |
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$ |
(88.8 |
) |
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$ |
(79.0 |
) |
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$ |
(120.7 |
) |
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