Derivative Instruments (Tables)
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12 Months Ended |
Dec. 31, 2025 |
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| Derivative Instruments |
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| Schedule of fixed price swap positions |
| | | | | | | | | | | | | | | | | | Weighted | | | | | | | | | Average | | Commodity / Settlement Period | | Index | | Contracted Volume | | Price | | Natural Gas | | | | | | | | | | | January-December 2026 | | Henry Hub | | 770,000 | MMBtu/day | | $ | 3.90 | /MMBtu | | January-December 2026 | | TETCO M2 | | 10,000 | MMBtu/day | | | 3.36 | /MMBtu | | January-December 2027 | | Henry Hub | | 330,000 | MMBtu/day | | | 3.98 | /MMBtu | |
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| Schedule of basis swap positions |
| | | | | | | | | | | | | | | | | | Weighted Average | | Commodity / Settlement Period | | Index to Basis Differential | | Contracted Volume | | Hedged Differential | | Natural Gas | | | | | | | | | | | January-December 2026 | | NYMEX to TETCO M2 | | 150,000 | MMBtu/day | | $ | 0.85 | /MMBtu | |
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| Schedule of contract collar positions |
| | | | | | | | | | | | | | | | | | | | | | Weighted | | Weighted | | | | | | | | | Average | | Average | | Commodity / Settlement Period | | Index | | Contracted Volume | | Ceiling Price | | Floor Price | | Natural Gas | | | | | | | | | | | | | | | January-December 2026 | | Henry Hub | | 500,000 | MMBtu/day | | $ | 5.83 | /MMBtu | | $ | 3.22 | /MMBtu | | January-December 2027 | | Henry Hub | | 10,000 | MMBtu/day | | | 5.00 | /MMBtu | | | 3.50 | /MMBtu | |
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| Schedule of call option and embedded put option arrangements |
| | | | | | | | | | | | | | | | | | | | | | | | | | Embedded | | | | | | | | | Call Option | | Put Option | | Commodity / Settlement Period | | Index | | Contracted Volume | | Strike Price | | Strike Price | | Natural Gas | | | | | | | | | | | | | | | January-December 2026 | | Henry Hub | | 32,000 | MMBtu/day | | $ | 2.63 | /MMBtu | | $ | 2.63 | /MMBtu | |
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| Summary of the fair values of derivative instruments, which are not designated as hedges for accounting purposes |
The table below presents a summary of the fair values of the Company’s derivative instruments and where such values are recorded in the consolidated balance sheets (in thousands): | | | | | | | | | | | | | | December 31, | | | | Balance Sheet Location | | 2024 | | 2025 | | Asset derivatives not designated as hedges for accounting purposes: | | | | | | | | | | Commodity derivatives—current | | Derivative instruments | | $ | — | | | 68,054 | | Embedded derivatives—current | | Derivative instruments | | | 1,050 | | | 859 | | Commodity derivatives—noncurrent | | Derivative instruments | | | — | | | 12,524 | | Embedded derivatives—noncurrent | | Derivative instruments | | | 1,296 | | | — | | Total asset derivatives (1) | | | | | 2,346 | | | 81,437 | | | | | | | | | | | | Liability derivatives not designated as hedges for accounting purposes: | | | | | | | | | | Commodity derivatives—current (2) | | Derivative instruments | | | 31,792 | | | — | | Commodity derivatives—noncurrent | | Derivative instruments | | | 17,233 | | | — | | Total liability derivatives (1) | | | | | 49,025 | | | — | | | | | | | | | | | | Net derivatives asset (liability) (1) | | | | $ | (46,679) | | | 81,437 | |
| (1) | The fair value of derivative instruments was determined using Level 2 inputs. |
| (2) | As of December 31, 2024, $2 million of current commodity derivative liabilities are attributable to the Company’s consolidated VIE, Martica. |
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| Schedule of gross amounts of recognized derivative assets and liabilities, the amounts offset under netting arrangements with counterparties, and the resulting net amounts |
The following table sets forth the gross values of recognized derivative assets and liabilities, the amounts offset under master netting arrangements with counterparties, and the resulting net amounts presented in the consolidated balance sheets as of the dates presented, all at fair value (in thousands): | | | | | | | | | | | | | | | | | | | | | | December 31, 2024 | | December 31, 2025 | | | | | | | | Net Amounts of | | | | | | Net Amounts of | | | | Gross | | Gross | | Assets | | Gross | | Gross | | Assets | | | | Amounts | | Amounts Offset | | (Liabilities) on | | Amounts | | Amounts Offset | | (Liabilities) on | | | | Recognized | | Recognized | | Balance Sheet | | Recognized | | Recognized | | Balance Sheet | | Commodity derivative assets | | $ | 3,482 | | | (3,482) | | | — | | | 162,641 | | | (82,063) | | | 80,578 | | Embedded derivative assets | | | 2,346 | | | — | | | 2,346 | | | 859 | | | — | | | 859 | | Commodity derivative liabilities | | | (52,507) | | | 3,482 | | | (49,025) | | | (82,063) | | | 82,063 | | | — | |
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| Summary of derivative fair value gains (losses) |
The following table sets forth a summary of derivative fair value gains and losses and where such values are recorded in the consolidated statements of operations and comprehensive income (in thousands): | | | | | | | | | | | | | | | Statement of | | | | | | | | | | | | | Operations | | Year Ended December 31, | | | | Location | | 2023 | | 2024 | | 2025 | | Commodity derivative fair value gains (1) | | Revenue | | $ | 165,448 | | | 2,846 | | | 112,536 | | Embedded derivative fair value gains (losses) (1) | | Revenue | | | 876 | | | (2,115) | | | (1,487) | |
| (1) | The fair value of derivative instruments was determined using Level 2 inputs. |
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