v3.26.1
Fair Value Measurements
3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements

16. Fair Value Measurements

The methodologies used to determine the fair value of our financial assets and liabilities at March 31, 2026 were the same as those used at December 31, 2025.

Cash and cash equivalents, restricted cash, accounts receivable, and accounts payable are carried at cost, which approximates their fair value because of the short-term maturity of these instruments. The Company’s revolving line of credit has a recorded value that approximates its fair value since its variable interest rate is tied to current market rates and the applicable margins represent market rates. The revolving line of credit is classified within Level 2 of the fair value hierarchy.

Commodity derivative instruments consist of NYMEX HH swap, NYMEX HH option, and Tennessee Z4 basis swap contracts for natural gas, and NYMEX WTI CMA swap contracts for crude oil. The Company’s derivative contracts are valued based on a marked to market approach. These assumptions are observable in the marketplace throughout the full term of the contract, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace, and are therefore designated as Level 2 within the valuation hierarchy. The Company utilizes its counterparties’ valuations to assess the reasonableness of its own valuations.

  ​ ​ ​

March 31, 2026

  ​ ​ ​

Level 1

Level 2

  ​ ​ ​

Level 3

  ​ ​ ​

Effect of Netting

  ​ ​ ​

Net Fair Value

Assets

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

Derivative contracts

$

$

3,018,320

$

$

(3,018,320)

$

Cash equivalents

$

182,110

$

$

$

$

182,110

Liabilities

Derivative contracts

$

$

7,051,037

$

$

(3,018,320)

$

4,032,717

December 31, 2025

Level 1

Level 2

  ​ ​ ​

Level 3

  ​ ​ ​

Effect of Netting

  ​ ​ ​

Net Fair Value

Assets

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

  ​ ​ ​

Derivative contracts

$

$

5,401,303

$

$

(1,552,027)

$

3,849,276

Cash equivalents

$

181,076

$

$

$

$

181,076

Liabilities

Derivative contracts

$

$

1,552,027

$

$

(1,552,027)

$