v3.25.2
Derivative Contracts
 6 Months Ended
Jun. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Contracts Derivative Contracts
The Company uses derivative contracts to reduce exposure to fluctuations in commodity prices. These transactions are in the form of fixed price swaps. While the use of these instruments limits the downside risk of adverse price changes, their use may also limit future revenues from favorable price changes. The Company does not intend to hold or issue derivative
financial instruments for speculative trading purposes and has elected not to designate any of its derivative instruments for hedge accounting treatment.
Under fixed price swap contracts, the Company receives a fixed price for the contract and pays a floating market price to the counterparty over a specified period for a contracted volume. The fixed-price payment and the floating-price payment are netted, resulting in a net amount due to or from the counterparty. Crude oil derivative contracts are indexed and settled
based on NYMEX West Texas Intermediate (“WTI”) pricing and natural gas derivative contracts are indexed and settled
based on NYMEX Henry Hub pricing.
The Company reports the fair value of derivatives on the balance sheet in derivative contracts assets and derivative contracts liabilities as either current or noncurrent based on the timing of expected future cash flows of individual trades. See Note 8 for additional information regarding fair value measurements.
The following table summarizes the open financial derivative positions as of June 30, 2025, related to oil production:
Period
Volume
(Mbbl)		Weighted
Average
Fixed Price
Q3 2025705$68.41 
Q4 202564668.09 
Q1 202660067.35 
Q2 202656369.50 
Q3 202626666.20 
Q4 202625365.37 
Q1 202724165.00 
Q2 202723066.16 
The following table summarizes the open financial derivative positions as of June 30, 2025, related to natural gas production:
Period
Volume
(Bbtu)		Weighted
Average
Fixed Price
Q3 202510,782$3.58 
Q4 202510,3084.03 
Q1 20269,8964.03 
Q2 20269,5323.68 
Q3 20264,6023.53 
Q4 20264,4533.77 
Q1 20274,3164.35 
Q2 20274,1903.83 
Balance Sheet Presentation.    The Company has master netting agreements with all of its derivative counterparties and presents its derivative assets and liabilities with the same counterparty on a net basis on the balance sheet. The following
table presents the gross amounts of recognized derivative assets, the amounts that are subject to offsetting under master netting arrangements and the net recorded fair values as recognized on the balance sheet (in thousands):

June 30,
2025		December 31,
2024
Derivative contracts – current, gross
$20,117 $14,696 
Netting arrangements
(3,580)(627)
Derivative contracts – current, net
$16,537 $14,069 
Derivative contracts – long-term, gross
$5,412 $2,182 
Netting arrangements
(2,171)(1,542)
Derivative contracts – long-term, net
$3,241 $640 
The following table presents the gross amounts of recognized derivative liabilities, the amounts that are subject to offsetting under master netting arrangements and the net recorded fair values as recognized on the balance sheet (in thousands):

June 30,
2025		December 31,
2024
Derivative contracts – current, gross
$(9,019)$(6,860)
Netting arrangements
3,580 627 
Derivative contracts – current, net
$(5,439)$(6,233)
Derivative contracts – long-term, gross
$(6,695)$(6,415)
Netting arrangements
2,171 1,542 
Derivative contracts – long-term, net
$(4,524)$(4,873)
Gains and Losses.    The following table presents the settlement and mark-to-market (“MTM”) gains and losses presented as a loss or gain on derivatives in the statement of operations for the three and six months ended June 30, 2025 and 2024 (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Settlements of oil derivatives
$6,640 $(7,124)$7,548 $(5,213)
Settlements of natural gas derivatives388 2,365 1,127 4,409 
MTM gains (losses) on oil derivatives, net
15,401 6,788 16,196 (31,392)
MTM gains (losses) on natural gas derivatives, net33,150 (6,664)(9,985)(1,707)
Total gains (losses) on derivative contracts$55,579 $(4,635)$14,886 $(33,903)