v3.26.1
DERIVATIVES
 3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES DERIVATIVES
We have entered into derivative contracts primarily with counterparties that are also lenders under the 2025 RBL Facility (defined below) to hedge price risk associated with a portion of our oil, natural gas and NGLs production. Pricing for these derivative contracts is based on certain market indexes and prices at our primary sales points. See table below for the list of outstanding contracts as of March 31, 2026:
Settlement Period IndexTotal volumes (Bbls)Weighted average floor price ($/Bbl)Weighted average ceiling price ($/Bbl)
Crude oil:
Call Option
ICE(a) Brent
April 2026 to June 2026211,000 — $122.00 
CollarsDated Brent
2026
April 2026 to June 2026698,000 $63.01 $69.01 
July 2026 to September 2026777,000 $63.85 $68.73 
October 2026 to December 2026692,000 $64.96 $68.33 
2027
January 2027 to March 2027673,000 $64.68 $72.63 
April 2027 to June 2027564,000 $70.99 $84.35 
(a) Intercontinental Exchange

Financial Statement Presentation
In accordance with the FASB’s authoritative guidance on disclosures about offsetting assets and liabilities, the Company is required to disclose both gross and net information about instruments and transactions eligible for offset in the statement of financial position as well as instruments and transactions subject to an agreement similar to a master netting agreement. The Company’s derivative instruments are presented as assets and liabilities on a net basis by counterparty, as all counterparty contracts provide for net settlement. No margin or collateral balances are deposited with counterparties, and as such, gross amounts are offset to determine the net amounts presented in the Company’s consolidated balance sheets.
The following tables summarize the fair value of all outstanding commodity derivative instruments recorded in the Company’s consolidated balance sheets:
(in thousands)March 31, 2026
Derivative InstrumentGross AmountGross Amount OffsetNet Amount
Derivatives assets:
Commodity derivatives - current$432 $— $432 
Commodity derivatives - long-term$442 $— $442 
Total derivatives assets$874 $— $874 
Derivatives liabilities:
Commodity derivatives - current (a)
$52,482 $— $52,482 
Total derivatives liabilities$52,482 $— $52,482 
(a) Includes deferred premiums payable of $0.6 million.
(in thousands)December 31, 2025
Derivative Instrument Gross AmountGross Amount OffsetNet Amount
Derivative assets:
Commodity derivatives - current$3,053 $(207)$2,846 
Total derivatives assets$3,053 $(207)$2,846 
Derivatives liabilities:
Commodity derivatives - current$207 $(207)$— 
Total derivatives liabilities$207 $(207)$— 
See Note 2. Summary of Significant Accounting Policies for further details on the measurement of our derivative assets at fair value.

The following table sets forth the gain (loss) on derivative instruments on the Company’s unaudited condensed consolidated statements of operations and comprehensive income:
Three Months Ended
March 31,
Derivative ItemStatements of Operations Line20262025
(in thousands)
Commodity derivativesRealized gain (loss), net$(14,633)$123 
Unrealized loss, net(55,948)(197)
Derivative instruments loss, net$(70,581)$(74)