v3.26.1
Derivative Instruments and Hedging Activities (Tables)
 3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Notional Volume of Commodity Hedges

At March 31, 2026, the notional volumes of our commodity derivative contracts were:

 

Commodity

Instrument

Unit

2026

 

2027

 

2028

 

2029

 

Natural Gas

Swaps

MMBtu/d

 

93,313

 

 

77,778

 

 

77,230

 

 

—

 

Natural Gas

Basis Swaps

MMBtu/d

 

483,282

 

 

356,829

 

 

279,798

 

 

24,959

 

NGL

Swaps

Bbl/d

 

32,377

 

 

24,258

 

 

23,669

 

 

—

 

NGL

Futures

Bbl/d

 

15,247

 

 

271

 

 

—

 

 

—

 

Condensate

Swaps

Bbl/d

 

8,263

 

 

3,316

 

 

3,244

 

 

—

 
Fair Values of Derivative Instruments

The following table reflects the fair value of our derivative instruments and their location on our Consolidated Balance Sheets as of the periods presented:

 

 

 

 

 

Fair Value as of March 31, 2026

 

 

Fair Value as of December 31, 2025

 

 

 

Balance Sheet

 

Derivative

 

 

Derivative

 

 

Derivative

 

 

Derivative

 

 

 

Location

 

Assets

 

 

Liabilities

 

 

Assets

 

 

Liabilities

 

Derivatives designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity contracts

 

Current

 

$

83.4

 

 

$

(115.0

)

 

$

137.1

 

 

$

(14.8

)

 

Long-term

 

 

34.8

 

 

 

(26.2

)

 

 

26.1

 

 

 

(6.9

)

Total derivatives designated as hedging instruments

 

 

 

$

118.2

 

 

$

(141.2

)

 

$

163.2

 

 

$

(21.7

)

Derivatives not designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity contracts

 

Current

 

$

17.2

 

 

$

(253.1

)

 

$

17.6

 

 

$

(219.3

)

 

Long-term

 

 

3.7

 

 

 

(86.6

)

 

 

8.9

 

 

 

(15.6

)

Total derivatives not designated as hedging instruments

 

 

 

$

20.9

 

 

$

(339.7

)

 

$

26.5

 

 

$

(234.9

)

Total current position

 

 

 

$

100.6

 

 

$

(368.1

)

 

$

154.7

 

 

$

(234.1

)

Total long-term position

 

 

 

 

38.5

 

 

 

(112.8

)

 

 

35.0

 

 

 

(22.5

)

Total derivatives

 

 

 

$

139.1

 

 

$

(480.9

)

 

$

189.7

 

 

$

(256.6

)

 
Pro Forma Impact of Derivatives Net in Consolidated Balance Sheet

The following tables reflect the pro forma impact of reporting derivatives on our Consolidated Balance Sheets on a net basis as of the periods presented:

 

 

 

 

Gross Presentation

 

 

Pro Forma Net Presentation

 

March 31, 2026

 

Asset

 

 

Liability

 

 

Collateral

 

 

Asset

 

 

Liability

 

Current Position

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Counterparties with offsetting positions or collateral

 

$

100.1

 

 

$

(368.1

)

 

$

90.9

 

 

$

9.2

 

 

$

(186.3

)

Counterparties without offsetting positions - assets

 

 

0.5

 

 

 

—

 

 

 

—

 

 

 

0.5

 

 

 

—

 

Counterparties without offsetting positions - liabilities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

100.6

 

 

 

(368.1

)

 

 

90.9

 

 

 

9.7

 

 

 

(186.3

)

Long-Term Position

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Counterparties with offsetting positions or collateral

 

 

38.5

 

 

 

(96.5

)

 

 

25.5

 

 

 

8.1

 

 

 

(40.6

)

Counterparties without offsetting positions - assets

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Counterparties without offsetting positions - liabilities

 

 

—

 

 

 

(16.3

)

 

 

—

 

 

 

—

 

 

 

(16.3

)

 

 

 

38.5

 

 

 

(112.8

)

 

 

25.5

 

 

 

8.1

 

 

 

(56.9

)

Total Derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Counterparties with offsetting positions or collateral

 

 

138.6

 

 

 

(464.6

)

 

 

116.4

 

 

 

17.3

 

 

 

(226.9

)

Counterparties without offsetting positions - assets

 

 

0.5

 

 

 

—

 

 

 

—

 

 

 

0.5

 

 

 

—

 

Counterparties without offsetting positions - liabilities

 

 

—

 

 

 

(16.3

)

 

 

—

 

 

 

—

 

 

 

(16.3

)

 

 

$

139.1

 

 

$

(480.9

)

 

$

116.4

 

 

$

17.8

 

 

$

(243.2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Presentation

 

 

Pro Forma Net Presentation

 

December 31, 2025

 

Asset

 

 

Liability

 

 

Collateral

 

 

Asset

 

 

Liability

 

Current Position

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Counterparties with offsetting positions or collateral

 

$

133.3

 

 

$

(234.1

)

 

$

29.6

 

 

$

31.3

 

 

$

(102.5

)

Counterparties without offsetting positions - assets

 

 

21.4

 

 

 

—

 

 

 

—

 

 

 

21.4

 

 

 

—

 

Counterparties without offsetting positions - liabilities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

154.7

 

 

 

(234.1

)

 

 

29.6

 

 

 

52.7

 

 

 

(102.5

)

Long-Term Position

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Counterparties with offsetting positions or collateral

 

 

33.4

 

 

 

(22.5

)

 

 

(2.7

)

 

 

15.3

 

 

 

(7.1

)

Counterparties without offsetting positions - assets

 

 

1.6

 

 

 

—

 

 

 

—

 

 

 

1.6

 

 

 

—

 

Counterparties without offsetting positions - liabilities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

35.0

 

 

 

(22.5

)

 

 

(2.7

)

 

 

16.9

 

 

 

(7.1

)

Total Derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Counterparties with offsetting positions or collateral

 

 

166.7

 

 

 

(256.6

)

 

 

26.9

 

 

 

46.6

 

 

 

(109.6

)

Counterparties without offsetting positions - assets

 

 

23.0

 

 

 

—

 

 

 

—

 

 

 

23.0

 

 

 

—

 

Counterparties without offsetting positions - liabilities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

$

189.7

 

 

$

(256.6

)

 

$

26.9

 

 

$

69.6

 

 

$

(109.6

)
Amounts Recorded in Other Comprehensive Income and Amounts Reclassified from OCI to Revenue

The following tables reflect amounts recorded in OCI and amounts reclassified from OCI to revenue for the periods presented:

 

 

 

Gain (Loss) Recognized in OCI on
Derivatives (Effective Portion)

 

Derivatives in Cash Flow

 

Three Months Ended March 31,

 

Hedging Relationships

 

2026

 

 

2025

 

Commodity contracts

 

$

(166.9

)

 

$

(33.8

)

 

 

 

 

Gain (Loss) Reclassified from OCI into
Income (Effective Portion)

 

 

 

Three Months Ended March 31,

 

Location of Gain (Loss)

 

2026

 

 

2025

 

Revenues

 

$

(0.2

)

 

$

(6.1

)
Gain (Loss) Recognized in Income on Derivatives The use of mark-to-market accounting for financial assets and liabilities (“financial instruments”) can cause non-cash earnings volatility due to changes in the underlying commodity price indices. For the three months ended March 31, 2026, we had unrealized mark-to-market losses primarily driven by unfavorable movement in natural gas forward basis prices.

 

 

 

Location of Gain (Loss)

 

Gain (Loss) Recognized in Income on Derivatives

 

Derivatives Not Designated

 

Recognized in Income on

 

Three Months Ended March 31,

 

as Hedging Instruments

 

Derivatives

 

2026

 

 

2025

 

Commodity contracts

 

Revenue

 

$

(243.5

)

 

$

(285.2

)