v3.26.1
Derivative Financial Instruments
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
 
We use financial derivative contracts to manage exposures to commodity price and interest rate fluctuations. We do not hold or issue derivative financial instruments for trading purposes.
 
We manage market and counterparty credit risk in accordance with our policies and guidelines. In accordance with these policies and guidelines, our management determines the appropriate timing and extent of derivative transactions. We have included an estimate of non-performance risk in the fair value measurement of our derivative contracts as required by ASC 820 — Fair Value Measurement.
 
Oil Derivative Contracts
 
The following table sets forth the volumes in barrels underlying the Company’s outstanding oil derivative contracts and the weighted average prices per Bbl for those contracts as of June 30, 2026. Volumes and weighted average prices are net of any offsetting derivative contracts entered into.
Weighted Average Price per Bbl
Net Deferred
Premium
Payable/Sold
TermType of ContractIndexMBbl(Receivable)SwapPutFloorCeiling
2026:
Jul - Dec
Three-way collars
Dated Brent
1,000 — — 50.00 60.00 75.51 
Jul - Dec
Swaps(1)
Dated Brent
500 — 72.46 — — 100.00 
Jul - Dec
Swaps(1)
Dated Brent
1,000 — 69.70 55.00 — — 
Jul - Dec
Swaps(1)
NYMEX WTI
750 — 64.83 50.00 — — 
2027:
Jan - Dec
Three-way collars
Dated Brent
2,000 0.40 — 47.50 60.00 75.00 
Jan - Jun
Three-way collars
Dated Brent
2,000 0.03 — 55.00 70.00 85.00 
Jan - Dec
Three-way collars
NYMEX WTI
1,000 0.50 — 55.00 70.00 90.00 
__________________________________
(1)Includes option contracts sold to counterparties to enhance Swaps.
In July 2026, we entered into Dated Brent two-way collar contracts for 2.0 MMBbl from January 2027 through December 2027 with a weighted average floor price of $67.50 per barrel and a ceiling price of $90.00 per barrel.
The following tables disclose the Company’s derivative instruments as of June 30, 2026 and December 31, 2025, and gain/(loss) from derivatives during the three and six months ended June 30, 2026 and 2025, respectively:
 
Estimated Fair Value
Asset (Liability)
Type of Contract Balance Sheet LocationJune 30,
2026		December 31,
2025
(In thousands)
Derivatives not designated as hedging instruments:
Derivative assets:
CommodityDerivatives assets—current$459 $47,816 
Provisional sales contractsReceivables: Oil and gas sales857 — 
CommodityDerivatives assets—long-term2,335 2,681 
Derivative liabilities:
CommodityDerivatives liabilities—current(11,633)— 
CommodityDerivatives liabilities—long-term(5,129)— 
Total derivatives not designated as hedging instruments $(13,111)$50,497 

Amount of Gain/(Loss)Amount of Gain/(Loss)
Three Months EndedSix Months Ended
June 30,June 30,
Type of ContractLocation of Gain/(Loss)2026202520262025
(In thousands)
Derivatives not designated as hedging instruments:
Provisional sales contracts
Oil and gas revenue$(11,126)$(6,780)$(62,105)$(7,607)
CommodityDerivatives, net51,809 21,566 (200,187)14,834 
Interest rate
Interest expense
— 683 — 656 
Total derivatives not designated as hedging instruments
$40,683 $15,469 $(262,292)$7,883 

Offsetting of Derivative Assets and Derivative Liabilities
 
Our derivative instruments which are subject to master netting arrangements with our counterparties only have the right of offset when there is an event of default. As of June 30, 2026 and December 31, 2025, there was not an event of default and, therefore, the associated gross asset or gross liability amounts related to these arrangements are presented on the consolidated balance sheets.