v3.26.1
Derivative Activities
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Activities

(7) DERIVATIVE ACTIVITIES

The following table sets forth our commodity-based derivative volumes by year as of June 30, 2026, excluding our basis swaps which are discussed separately below. All fair values presented in the table below utilize Level 2 inputs except for C3 (propane) collars, which utilize Level 3 inputs. All fair market values ("FMV") are presented in thousands:

Period

 

Contract Type

 

Volume Hedged

 

 

Weighted Average Hedge Price

 

 

FMV

 

 

 

 

 

 

 

Swap

 

 

Sold Put

 

 

Floor

 

 

Ceiling

 

 

 

 

Natural Gas (a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jul - Dec 2026

 

Swaps

 

300,000 Mmbtu/day

 

$

 

4.06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

37,209

 

Jul - Dec 2026

 

Three-way Collars

 

333,424 Mmbtu/day

 

 

 

 

 

$

 

2.74

 

 

$

 

3.70

 

 

$

 

5.05

 

 

$

24,781

 

2027

 

Swaps

 

270,000 Mmbtu/day

 

 

 

4.05

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

55,648

 

2027

 

Three-way Collars

 

80,000 Mmbtu/day

 

 

 

 

 

$

 

3.00

 

 

$

 

4.00

 

 

$

 

4.75

 

 

$

10,382

 

2028

 

Collars

 

20,000 Mmbtu/day

 

 

 

 

 

 

 

 

 

$

 

3.50

 

 

$

 

4.50

 

 

$

1,104

 

2028

 

Three-way Collars

 

90,000 Mmbtu/day

 

 

 

 

 

$

 

2.50

 

 

$

 

3.50

 

 

$

 

4.50

 

 

$

232

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jul - Sep 2026

 

Three-way Collars

 

5,000 bbls/day

 

 

 

 

 

$

 

55.00

 

 

$

 

65.00

 

 

$

 

77.63

 

 

$

109

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NGLs - C3 (propane)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jul - Sep 2026

 

C3 Swaps

 

4,000 bbls/day

 

$

 

32.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

899

 

Oct - Dec 2026

 

C3 Collars

 

4,000 bbls/day

 

 

 

 

 

 

 

 

 

$

 

31.50

 

 

$

 

35.70

 

 

$

882

 
(a)
We also sold natural gas call swaptions of 50,000 Mmbtu/day for 2028 at a weighted average price of $4.00/Mmbtu that expire in December 2026. The fair value of these contracts as of June 30, 2026, which utilizes Level 3 inputs, was a derivative liability of $657,000.

Basis Swap Contracts

In addition to the commodity derivatives described above, as of June 30, 2026, we had natural gas basis swap contracts which lock in the differential between NYMEX Henry Hub and certain of our physical pricing indices. These contracts settle through December 2030 and include a total volume of 135,187,500 Mmbtu. The fair value of these contracts was a liability of $10.6 million as of June 30, 2026.

Derivative Assets and Liabilities

The combined fair value of derivatives included in the accompanying consolidated balance sheets as of June 30, 2026 and December 31, 2025 is summarized below. The assets and liabilities are netted where derivatives with both gain and loss positions are held by a single counterparty and we have master netting arrangements. The tables below provide additional information relating to our master netting arrangements with our derivative counterparties (in thousands):

 

June 30,
2026

 

 

December 31,
2025

 

Derivative assets:

 

 

 

 

 

Gross amounts of recognized assets

$

151,970

 

 

$

87,458

 

Gross amounts offset in the consolidated balance sheets

 

(28,627

)

 

 

(18,061

)

Net amounts of assets presented in the consolidated balance sheets

$

123,343

 

 

$

69,397

 

 

 

 

June 30,
2026

 

 

December 31,
2025

 

Derivative (liabilities):

 

 

 

 

 

Gross amounts of recognized (liabilities)

$

(32,014

)

 

$

(21,620

)

Gross amounts offset in the consolidated balance sheets

 

28,627

 

 

 

18,061

 

Net amounts of (liabilities) presented in the consolidated balance sheets

$

(3,387

)

 

$

(3,559

)

Derivative Fair Value Income (Loss)

The effects of our derivatives on our consolidated statements of income are summarized below (in thousands):

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Natural gas derivatives

$

65,650

 

 

$

148,863

 

 

$

59,348

 

 

$

(9,474

)

NGLs derivatives

 

4,573

 

 

 

3,289

 

 

 

(5,409

)

 

 

2,325

 

Oil derivatives

 

3,317

 

 

 

2,595

 

 

 

(13,828

)

 

 

2,939

 

Total derivative fair value income (loss)

$

73,540

 

 

$

154,747

 

 

$

40,111

 

 

$

(4,210

)