v3.26.1
Commodity Sales Commitments
 3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Commodity Sales Commitments Commodity Sales Commitments

Our policy is to consider hedging a portion of our production at commodity prices the general partner deems attractive. While there is a risk we may not be able to realize the benefit of rising prices, the general partner may enter into hedging agreements because of the benefits of predictable, stable cash flows.

We periodically enter futures contracts, energy swaps, swaptions and basis swaps to hedge our exposure to price fluctuations on crude oil, natural gas liquids and natural gas sales. When actual commodity prices exceed the fixed price provided by these contracts we pay this excess to the counterparty, and when the commodity prices are below the contractually provided fixed price, we receive this difference from the counterparty. We also enter costless price collars, which set a ceiling and floor price to hedge our exposure to price fluctuations on commodity prices. When actual commodity prices exceed the ceiling price provided by these contracts we pay this excess to the counterparty, and when the commodity prices are below the floor price, we receive this difference from the counterparty. If the actual commodity price falls in between the ceiling and floor price, there is no cash settlement.

Crude Oil

We have entered into crude oil futures contracts and swap agreements that effectively fix prices for the production

and periods shown below. Prices to be realized for hedged production may be less than these fixed prices because of

location, quality and other adjustments.

 

Production Period

 

Bbls per Day

 

 

Weighted Average
NYMEX
Price per Bbl

 

April 2026—June 2026

 

 

10,000

 

 

$

62.89

 

July 2026—September 2026

 

 

10,000

 

 

$

61.44

 

October 2026—December 2026

 

 

10,000

 

 

$

59.29

 

January 2027—June 2027

 

 

3,000

 

 

$

60.56

 

July 2027—December 2027

 

 

3,000

 

 

$

63.43

 

January 2028—March 2028

 

 

3,000

 

 

$

63.07

 

 

The price we receive for our oil production is generally different than the NYMEX price because of changes in the roll component of the NYMEX price due to the timing of when the monthly NYMEX price is set. We have entered sell basis swap agreements that effectively fix the roll component of the NYMEX price for the production and periods shown below.

 


Production Period

 

Bbls per Day

 

 

Weighted Average
Roll
Price per Bbl (a)

 

April 2026—December 2026

 

 

4,000

 

 

$

1.80

 

_________________________________

a)
Increases to NYMEX oil price for roll component

 

Net settlements on oil futures and sell basis swap contracts decreased oil revenues by $8.4 million in the three months ended March 31, 2026 and increased oil revenues by $0.1 million in the three months ended March 31, 2025. An unrealized loss decreased

oil revenues by $84.2 million in the three months ended March 31, 2026 and an unrealized gain increased oil revenues by $3.1 million in the three months ended March 31, 2025.

Natural Gas Liquids

We have entered into natural gas liquids futures contracts and swap agreements for ethane that effectively fix prices for the production and periods shown below. Prices to be realized for hedged production may be less than these fixed prices because of location, quality and other adjustments.

 

Production Period

 

Gallons per Day

 

 

Weighted Average
NGL OPIS
Price per Gallon

 

Ethane

 

 

 

 

 

 

January 2027—March 2027

 

 

14,700

 

 

$

0.29

 

 

Net settlements on NGL futures contracts had no impact on NGL revenues in the three months ended March 31, 2026 and no impact on NGL revenues in the three months ended March 31, 2025. An unrealized gain increased NGL revenues by $23.0 thousand in the three months ended March 31, 2026 and an unrealized loss decreased NGL revenues by $13.0 thousand in the three months ended March 31, 2025.

Natural Gas

We have entered into natural gas futures contracts and swap agreements that effectively fix prices for the production and periods shown below. Prices to be realized for hedged production may be less than these fixed prices because of location, quality and other adjustments.

 

Production Period

 

MMBtu per Day

 

 

Weighted Average
NYMEX
Price per MMBtu

 

April 2026—September 2026

 

 

50,000

 

 

$

3.49

 

October 2026—December 2026

 

 

50,000

 

 

$

3.93

 

January 2027—March 2027

 

 

42,500

 

 

$

4.36

 

April 2027—December 2027

 

 

32,500

 

 

$

3.76

 

January 2028—March 2028

 

 

20,000

 

 

$

4.18

 

 

We have also entered into gas collars that set a ceiling and floor price for the production and periods shown below.

 

 

 

 

Weighted Average
NYMEX Price per MMBtu

 

Production Period

MMBtu per Day

 

Floor

 

Ceiling

 

January 2028— March 2028

 

10,000

 

$

3.50

 

$

5.40

 

 

The price we receive for our gas production is generally less than the NYMEX price because of adjustments for delivery location (“basis”), relative quality and other factors. We have entered into sell basis swap agreements that effectively fix the basis adjustment for the San Juan Basin delivery location for the production and periods shown below.

 

Production Period

 

MMBtu per Day

 

 

Weighted Average
Sell Basis
Price per MMBtu(a)

 

April 2026—March 2028

 

 

30,000

 

 

$

(0.89

)

____________________________

(a)
Reductions to NYMEX gas price for delivery location

Net settlements on gas futures and sell basis swap contracts decreased gas revenues by $7.3 million in the three months ended March 31, 2026 and $2.0 million in the three months ended March 31, 2025. An unrealized gain to record the fair value of derivative contracts increased gas revenues by $8.5 million in the three months ended March 31, 2026 and an unrealized loss decreased gas revenues by $10.6 million in the three months ended March 31, 2025.