v3.26.1
Derivative Financial Instruments
 3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
 
We use financial derivative contracts to manage exposures to commodity price and interest rate fluctuations. We do not hold or issue derivative financial instruments for trading purposes.
 
We manage market and counterparty credit risk in accordance with our policies and guidelines. In accordance with these policies and guidelines, our management determines the appropriate timing and extent of derivative transactions. We have included an estimate of non-performance risk in the fair value measurement of our derivative contracts as required by ASC 820 — Fair Value Measurement.
 
Oil Derivative Contracts
 
The following table sets forth the volumes in barrels underlying the Company’s outstanding oil derivative contracts and the weighted average prices per Bbl for those contracts as of March 31, 2026. Volumes and weighted average prices are net of any offsetting derivative contracts entered into.
   Weighted Average Price per Bbl
   Net Deferred    
   Premium    
Payable/Sold
TermType of ContractIndexMBbl(Receivable)SwapPutFloorCeiling
2026:
Apr - Jun
Two-way collars
Dated Brent500 $1.55 $— $— $60.00 $74.75 
Apr - Dec
Three-way collars
Dated Brent
1,500 — — 50.00 60.00 75.51 
Apr - Jun
Swaps(1)
Dated Brent
500 — 72.90 — — 80.00 
Apr - Dec
Swaps(1)
Dated Brent
750 — 72.46 — — 80.00 
Apr - Dec
Swaps(1)
Dated Brent
1,500 — 69.70 55.00 — — 
Apr - Dec
Swaps(1)
NYMEX WTI
1,125 — 64.83 50.00 — — 
2027:
Jan - Dec
Three-way collars
Dated Brent
2,000 0.40 — 47.50 60.00 75.00 
Jan - Jun
Three-way collars
Dated Brent
2,000 0.03 — 55.00 70.00 85.00 
__________________________________
(1)Includes option contracts sold to counterparties to enhance Swaps.
In April 2026, we bought an $80.00 by $100.00 Dated Brent call spread on 0.6 MMBbl, which effectively raises the ceiling on a portion of our sold calls to $100.00 per barrel from June 2026 through December 2026.

The following tables disclose the Company’s derivative instruments as of March 31, 2026 and December 31, 2025, and gain/(loss) from derivatives during the three months ended March 31, 2026 and 2025, respectively:
 
  Estimated Fair Value
  Asset (Liability)
Type of Contract Balance Sheet LocationMarch 31,
2026		December 31,
2025
  (In thousands)
Derivatives not designated as hedging instruments:   
Derivative assets:   
CommodityDerivatives assets—current$— $47,816 
CommodityDerivatives assets—long-term— 2,681 
Derivative liabilities: 
CommodityDerivatives liabilities—current(156,243)— 
CommodityDerivatives liabilities—long-term(14,915)— 
Total derivatives not designated as hedging instruments  $(171,158)$50,497 

  Amount of Gain/(Loss)
  Three Months Ended
  March 31,
Type of ContractLocation of Gain/(Loss)20262025
  (In thousands)
Derivatives not designated as hedging instruments:
   
Provisional sales contracts
Oil and gas revenue$(50,980)$(827)
CommodityDerivatives, net(251,996)(6,732)
Interest rate
Interest expense
— (27)
Total derivatives not designated as hedging instruments
 $(302,976)$(7,586)
Offsetting of Derivative Assets and Derivative Liabilities
 
Our derivative instruments which are subject to master netting arrangements with our counterparties only have the right of offset when there is an event of default. As of March 31, 2026 and December 31, 2025, there was not an event of default and, therefore, the associated gross asset or gross liability amounts related to these arrangements are presented on the consolidated balance sheets.