v3.26.1
Commodity Derivative Instruments
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Commodity Derivative Instruments Commodity Derivative Instruments
The Company periodically enters into various commodity hedging instruments to mitigate a portion of the effect of oil and natural gas price fluctuations. The Company classifies the fair value amounts of commodity derivative assets and liabilities as current or noncurrent based on the expected timing of settlement of the cash flows. Commodity derivatives are presented as assets and liabilities on a net basis by counterparty, as all counterparty contracts provide for net settlement.
The following table summarizes the location and fair value amounts of all commodity derivative instruments in the consolidated balance sheet as of June 30, 2026 as well as the gross recognized derivative assets, liabilities, and amounts offset in the consolidated balance sheet:
(in thousands)
GROSS RECOGNIZED FAIR VALUE ASSETS/ LIABILITIES
GROSS AMOUNTS OFFSET
NET RECOGNIZED FAIR VALUE ASSETS/ LIABILITIES
Commodity derivative assets:
Current derivative assets
$
5,783 
$
(4,015)
$
1,768 
Noncurrent derivative assets
9,364 
(414)
8,950 
Total
$
15,147 
$
(4,429)
$
10,718 
Commodity derivative liabilities:
Current derivative liabilities
$
8,308 
$
(4,015)
$
4,293 
Noncurrent derivative liabilities
414 
(414)
— 
Total
$
8,722 
$
(4,429)
$
4,293 
The following table summarizes the location and fair value amounts of all commodity derivative instruments in the consolidated balance sheet as of December 31, 2025, as well as the gross recognized derivative assets, liabilities, and amounts offset in the consolidated balance sheet:
(in thousands)
GROSS RECOGNIZED FAIR VALUE ASSETS/ LIABILITIES
GROSS AMOUNTS OFFSET
NET RECOGNIZED FAIR VALUE ASSETS/ LIABILITIES
Commodity derivative assets:
Current derivative assets
$
14,252 
$
— 
$
14,252 
Noncurrent derivative assets
184 
— 
184 
Total
$
14,436 
$
— 
$
14,436 
Commodity derivative liabilities:
Current derivative liabilities
$
— 
$
— 
$
— 
Noncurrent derivative liabilities
46 
— 
46 
Total
$
46 
$
— 
$
46 
As of June 30, 2026, the Company had the following crude oil swaps:
INDEX
SETTLEMENT PERIOD
VOLUME HEDGED (Bbls)
WEIGHTED AVERAGE FIXED PRICE
WTI-NYMEX
Q3 2026
490,679
$65.01
WTI-NYMEX
Q4 2026
457,155
$64.97
WTI-NYMEX
Q1 2027
270,000
$69.25
WTI-NYMEX
Q2 2027
480,000
$68.05
WTI-NYMEX
Q3 2027
495,000
$68.38
WTI-NYMEX
Q4 2027
465,000
$67.88
WTI-NYMEX
Q1 2028
360,000
$70.60
WTI-NYMEX
Q2 2028
360,000
$70.60
WTI-NYMEX
Q3 2028
360,000
$70.60
WTI-NYMEX
Q4 2028
270,000
$70.80
As of June 30, 2026, the Company had the following crude oil collars:
INDEX
SETTLEMENT PERIOD
VOLUME HEDGED (Bbls)
WEIGHTED AVERAGE FLOOR/CEILING PRICE
WTI-NYMEX
Q3 2026
213,000
$61.62 / $72.58
WTI-NYMEX
Q4 2026
168,000
$58.04 / $67.51
WTI-NYMEX
Q1 2027
300,000
$55.75 / $66.44
WTI-NYMEX
Q2 2027
45,000
$60.00 / $64.25
As of June 30, 2026, the Company had the following natural gas collars:
INDEX
SETTLEMENT PERIOD
VOLUME HEDGED (MMBtu)
WEIGHTED AVERAGE FLOOR/CEILING PRICE
Henry Hub-NYMEX
Q3 2026
1,510,800
$3.73 / $4.90
Henry Hub-NYMEX
Q4 2026
1,452,700
$3.73 / $4.90
Henry Hub-NYMEX
Q1 2027
795,000
$4.00 / $5.68
As of June 30, 2026, the Company had the following natural gas basis swaps:
INDEX
SETTLEMENT PERIOD
VOLUME HEDGED (MMBtu)
WEIGHTED AVERAGE FIXED PRICE
Chicago City Gate to Henry Hub
Q3 2026
1,510,800
$(0.100)
Chicago City Gate to Henry Hub
Q4 2026
1,452,700
$(0.100)
Chicago City Gate to Henry Hub
Q1 2027
795,000
$0.300
As of June 30, 2026, the Company had the following natural gas liquids swaps (presented annually due to lesser significance):
INDEX
SETTLEMENT PERIOD
VOLUME HEDGED (Gallons)
WEIGHTED AVERAGE FIXED PRICE
Mont Belvieu Ethane
2026
1,023,000
$0.26
Conway Propane
2026
2,692,000
$0.71
Conway Propane
2027
3,360,000
$0.67
Mont Belvieu Iso-Butane
2026
222,000
$0.92
Mont Belvieu Iso-Butane
2027
180,000
$0.84
Mont Belvieu Normal Butane
2026
675,000
$0.89
Mont Belvieu Normal Butane
2027
600,000
$0.81
Mont Belvieu Natural Gasoline
2026
837,000
$1.35
Mont Belvieu Natural Gasoline
2027
720,000
$1.29
Due to the volatility of oil, natural gas and natural gas liquids prices, the estimated fair values of the Company’s commodity derivative instruments are subject to significant fluctuations from period to period.
The counterparties in the Company’s derivative instruments either do not require collateral or also participate in the Revolving Credit Facility; and thus have the right of offset for any derivative liabilities, with the Revolving Credit Facility secured by the Company’s oil and gas assets. For further discussion related to the fair value of the Company’s derivatives, see Note 4 (“Fair Value Measurements”).