v3.26.1
Fair Value Measurements (Tables)
3 Months Ended
Mar. 31, 2026
Fair Value Measurements [Abstract]  
Schedule of Assets and Liabilities Which are Measured at Fair Value on a Recurring Basis

The following table sets forth the Company’s assets and liabilities which are measured at fair value on a recurring basis:

 

    Successor  
    March 31, 2026  
(in thousands)   Level 1     Level 2     Level 3     Total  
Assets                        
Current:                        
Commodity derivatives   $     $ 61,779     $     $ 61,779  
Noncurrent:                                
Commodity derivatives           10,616             10,616  
                                 
Liabilities                                
Current:                                
Commodity derivatives           (44,013 )           (44,013 )
Noncurrent:                                
Earnout shares                 (14,800 )     (14,800 )
Commodity derivatives           (28,735 )           (28,735 )
Series A embedded derivative (a)                        
Net derivative instruments   $     $ (353 )   $ (14,800 )   $ (15,153 )

 

(a) The Company identified embedded features within the Series A Redeemable Preferred Stock requiring bifurcation under ASC 815-15. The fair value of the compound embedded derivative was determined to be $0 as of March 4, 2026 and March 31, 2026, and accordingly was not recorded. The embedded derivative will be remeasured each reporting period.

 

    Predecessor  
    December 31, 2025  
(in thousands)   Level 1     Level 2     Level 3     Total  
Assets                        
Current:                        
Commodity derivatives   $     $ 9,660     $     $ 9,660  
Noncurrent:                                
Commodity derivatives           6,810             6,810  
                                 
Liabilities                                
Current:                                
Commodity derivatives           (17,125 )           (17,125 )
Noncurrent:                                
Commodity derivatives           (13,544 )           (13,544 )
Net derivative instruments   $     $ (14,199 )   $     $ (14,199 )
Schedule of Assumptions The following assumptions were used at each valuation date:
    Successor     Successor  
    March 31,
2026
    March 4,
2026
 
Stock price   $ 11.02     $ 11.05  
Risk-free interest rate     3.84 %     3.60 %
Expected term (in years)     4.9       5.0  
Expected volatility     55.00 %     55.00 %
Dividend yield     13.50 %     13.50 %
Schedule of Reconciliation for the Change in Fair Value

The following table provides a reconciliation for the change in fair value of the Earnout Shares categorized within Level 3 of the fair value hierarchy:

 

(in thousands)   Earnout
Liabilities
 
Fair value as of March 4, 2026   $ 14,896  
Change in fair value     (96 )
Fair value as of March 31, 2026   $ 14,800