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

Note 5. Derivative Instruments

From time to time the Company enters into crude oil and natural gas derivative contracts to economically hedge against the variability in cash flows associated with future sales of production. The Company recognizes its derivative instruments on the balance sheet as either assets or liabilities measured at fair value. The estimated fair value is based upon various factors as described in Note 6. Fair Value Measurements.

At March 31, 2026 the Company had outstanding crude oil and natural gas derivative contracts as set forth in the tables below.

 

Natural gas derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Hedge Price ($/MMBtu)

 

Period and Type of Contract

 

Average Volumes Hedged

 

Basis Swaps

 

 

Fixed Swaps

 

April 2026 - December 2026

 

 

 

 

 

 

 

 

 

 

 

Swaps - Henry Hub

 

 

771,000

 

 

MMBtus/day

 

 

 

 

$

4.14

 

Basis Swaps - WAHA

 

 

117,000

 

 

MMBtus/day

 

$

(1.78

)

 

 

 

January 2027 - March 2027

 

 

 

 

 

 

 

 

 

 

 

Basis Swaps - WAHA

 

 

120,000

 

 

MMBtus/day

 

$

(0.90

)

 

 

 

January 2027 - December 2027

 

 

 

 

 

 

 

 

 

 

 

Swaps - Henry Hub

 

 

647,000

 

 

MMBtus/day

 

 

 

 

$

3.94

 

January 2028 - December 2028

 

 

 

 

 

 

 

 

 

 

 

Swaps - Henry Hub

 

 

50,000

 

 

MMBtus/day

 

 

 

 

$

3.80

 

 

 

Crude oil derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Hedge Price ($/Bbl)

 

Period and Type of Contract

 

Average Volumes Hedged

 

Roll Swaps

 

 

Fixed Swaps

 

 

Floor

 

 

Ceiling

 

April 2026 - December 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Swaps - WTI

 

 

122,000

 

 

Bbls/day

 

 

 

 

$

64.28

 

 

 

 

 

 

 

Collars - WTI

 

 

33,000

 

 

Bbls/day

 

 

 

 

 

 

 

$

60.00

 

 

$

69.38

 

Roll Swaps - WTI

 

 

52,000

 

 

Bbls/day

 

$

1.45

 

 

 

 

 

 

 

 

 

 

January 2027 - December 2027

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Swaps - WTI

 

 

58,000

 

 

Bbls/day

 

 

 

 

$

62.40

 

 

 

 

 

 

 

January 2028 - December 2028

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Swaps - WTI

 

 

20,000

 

 

Bbls/day

 

 

 

 

$

61.42

 

 

 

 

 

 

 

Derivative gains and losses

Cash receipts and payments in the following table reflect the gains or losses on crude oil and natural gas derivative contracts which matured during the applicable period, calculated as the difference between the contract price and the market settlement price of matured contracts. The Company's derivative contracts are settled based upon reported settlement prices on commodity exchanges, with crude oil derivative settlements based on NYMEX West Texas Intermediate (“WTI”) pricing and natural gas derivative settlements based primarily on NYMEX Henry Hub pricing. Non-cash gains and losses below represent the change in fair value of crude oil and natural gas derivative instruments which continued to be held at period end and the reversal of previously recognized non-cash gains or losses on derivative contracts that matured during the period.

 

 

Three months ended March 31,

 

In thousands

 

2026

 

 

2025

 

Cash received (paid) on derivatives:

 

 

 

 

 

 

Crude oil fixed price swaps

 

$

(70,982

)

 

$

9,252

 

Crude oil collars

 

 

(22,113

)

 

 

 

Crude oil NYMEX roll swaps

 

 

 

 

 

669

 

Natural gas fixed price swaps

 

 

(48,246

)

 

 

6,931

 

Natural gas collars

 

 

(429

)

 

 

 

Natural gas WAHA basis swaps

 

 

27,621

 

 

 

 

Cash received (paid) on derivatives, net

 

 

(114,149

)

 

 

16,852

 

Non-cash gain (loss) on derivatives:

 

 

 

 

 

 

Crude oil fixed price swaps

 

 

(858,627

)

 

 

(9,550

)

Crude oil collars

 

 

(180,271

)

 

 

(47,565

)

Crude oil NYMEX roll swaps

 

 

(33,931

)

 

 

3,867

 

Natural gas fixed price swaps

 

 

75,043

 

 

 

(287,165

)

Natural gas collars

 

 

(16,702

)

 

 

7,559

 

Natural gas WAHA basis swaps

 

 

20,513

 

 

 

 

Non-cash loss on derivatives, net

 

 

(993,975

)

 

 

(332,854

)

Loss on derivative instruments, net

 

$

(1,108,124

)

 

$

(316,002

)

Balance sheet offsetting of derivative assets and liabilities

The Company’s crude oil and natural gas derivative contracts are recorded at fair value in the condensed consolidated balance sheets under the captions “Derivative assets,” “Derivative assets, noncurrent,” “Derivative liabilities,” and “Derivative liabilities, noncurrent” as applicable. Derivative assets and liabilities with the same counterparty that are subject to contractual terms which provide for net settlement are reported on a net basis in the consolidated balance sheets.

The following table presents the gross amounts of recognized crude oil and natural gas derivative assets and liabilities, as applicable, the amounts offset under netting arrangements with counterparties, and the resulting net amounts presented in the condensed consolidated balance sheets for the periods presented, all at fair value.

 

In thousands

 

March 31, 2026

 

 

December 31, 2025

 

Commodity derivative assets:

 

 

 

 

 

 

Gross amounts of recognized assets

 

$

273,386

 

 

$

392,348

 

Gross amounts offset on balance sheet

 

 

(17,026

)

 

 

(6,114

)

Net amounts of assets on balance sheet

 

 

256,360

 

 

 

386,234

 

Commodity derivative liabilities:

 

 

 

 

 

 

Gross amounts of recognized liabilities

 

 

(886,032

)

 

 

(11,019

)

Gross amounts offset on balance sheet

 

 

17,026

 

 

 

6,114

 

Net amounts of liabilities on balance sheet

 

$

(869,006

)

 

$

(4,905

)

 

The following table reconciles the net amounts disclosed above to the individual financial statement line items in the condensed consolidated balance sheets.

 

In thousands

 

March 31, 2026

 

 

December 31, 2025

 

Derivative assets

 

$

204,536

 

 

$

324,706

 

Derivative assets, noncurrent

 

 

51,824

 

 

 

61,528

 

Net amounts of assets on balance sheet

 

 

256,360

 

 

 

386,234

 

Derivative liabilities

 

 

(732,266

)

 

 

 

Derivative liabilities, noncurrent

 

 

(136,740

)

 

 

(4,905

)

Net amounts of liabilities on balance sheet

 

 

(869,006

)

 

 

(4,905

)

Total derivative assets (liabilities), net

 

$

(612,646

)

 

$

381,329