v3.26.1
Fair Value (Tables)
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Schedule of Estimated Fair Values and Carrying Values of Other Financial Instruments The following are estimated fair values and carrying values of our other financial instruments at each of these dates:

 

 

 

Asset (Liability)

 

 

 

March 31, 2026

 

 

December 31, 2025

 

(in thousands)

 

Carrying
Amount

 

 

Fair
Value

 

 

Carrying
Amount

 

 

Fair
Value

 

Note receivable from related party

 

$

7,168

 

 

$

7,168

 

 

$

7,131

 

 

$

7,131

 

Long-term debt

 

$

(277,100

)

 

$

(277,100

)

 

$

(291,100

)

 

$

(291,100

)

Derivative asset

 

$

7,622

 

 

$

7,622

 

 

$

23,852

 

 

$

23,852

 

Derivative liability

 

$

(64,498

)

 

$

(64,498

)

 

$

(5,092

)

 

$

(5,092

)
Schedule of Fair Value Measurements and the Level Within the Fair Value Hierarchy

The following table summarizes our fair value measurements and the level within the fair value hierarchy in which the fair value measurements fall.

 

 

 

Fair Value Measurements

 

 

March 31, 2026

 

 

December 31, 2025

(in thousands)

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Note receivable from related party

 

$

7,168

 

 

$

7,131

 

 

Long-term debt

 

$

(277,100

)

 

$

(291,100

)

 

Derivative asset

 

$

7,622

 

 

$

23,852

 

 

Derivative liability

 

$

(64,498

)

 

$

(5,092

)

 
Schedule of Fair Value of Derivative Contracts

The fair value of our derivatives contracts consists of the following:

 

 

 

Asset Derivatives

 

 

Liability Derivatives

 

(in thousands)

 

March 31,
2026

 

 

December 31,
2025

 

 

March 31,
2026

 

 

December 31,
2025

 

Derivatives not designated as hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

Crude oil futures and differential swaps

 

$

—

 

 

$

21,771

 

 

$

(62,399

)

 

$

—

 

Natural gas liquids futures

 

$

42

 

 

$

19

 

 

$

—

 

 

$

—

 

Natural gas futures, collars and basis swaps

 

$

7,580

 

 

$

2,062

 

 

$

(2,099

)

 

$

(5,092

)

Total

 

$

7,622

 

 

$

23,852

 

 

$

(64,498

)

 

$

(5,092

)
Schedule of Fair Value of Derivative Gain (Loss) Included Earnings

Derivative fair value (gain) loss, included as part of the related revenue line on the consolidated income statements, comprises the following components:

 

 

 

Three Months Ended March 31,

 

(in thousands)

 

2026

 

 

2025

 

Net cash paid to counterparties

 

$

15,644

 

 

$

1,896

 

Non-cash change in derivative fair value

 

$

75,636

 

 

$

7,591

 

Derivative fair value (gain) loss

 

$

91,280

 

 

$

9,487