Derivatives (Tables)
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6 Months Ended |
Jun. 30, 2026 |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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| Schedule of Net Fair Value of Derivative Financial Instruments |
Below is a description of these instruments: | | | When the Company sells a swap, it agrees to receive a fixed price for the contract while paying a floating market price to the counterparty; | | Arrangements that include a fixed floor price (purchased put option) and a fixed ceiling price (sold call option) based on an index price have no net costs overall. At the contract settlement date, (1) when the index price is higher than the ceiling price, the Company pays the counterparty the difference between the index price and ceiling price, (2) when the index price is between the floor and ceiling prices, no payments are due from either party, and (3) when the index price is below the floor price, the Company will receive the difference between the floor price and the index price. Some collar arrangements may also include a sold put option with a strike price below the purchased put option. Known as a three-way collar, the structure operates similarly to the standard collar. However, when the index price settles below the sold put option, the Company pays the counterparty the difference between the index price and sold put option, effectively enhancing realized pricing by the difference between the price of the sold and purchased put options; | | Arrangements that guarantee a price differential for commodities from a specified delivery point. When the Company sells a basis swap, it receives a payment from the counterparty if the price differential exceeds the stated terms of the contract. Conversely, if the price differential is less than the stated terms, the Company pays the counterparty; |
| | | The Company purchases and sells put options in exchange for a premium. When the Company purchases a put option, it receives from the counterparty the excess amount (if any) by which the market price falls below the strike price of the put option at the time of settlement. If the market price is above the put option’s strike price, no payment is required from either party. Conversely, when the Company sells a put option, it pays the counterparty the excess amount (if any) by which the market price falls below the strike price of the put option at the time of settlement. If the market price is above the put option’s strike price, no payment is required from either party; | | The Company purchases and sells call options in exchange for a premium. When the Company purchases a call option, it receives from the counterparty the excess amount (if any) by which the market price exceeds the strike price of the call option at the time of settlement. If the market price is below the call option’s strike price, no payment is required from either party. When the Company sells a call option, it pays the counterparty the excess amount (if any) by which the market price exceeds the strike price of the call option at the time of settlement. If the market price is below the call option’s strike price, no payment is required from either party; and |
| | | | | (In thousands, except volume data) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | SOFR interest rate swap ($5,520 principal hedged, 4.15% fixed-rate) | | | | | | Total fair value of derivatives | | |
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| Schedule of Net Derivatives |
The following table outlines the Company’s net derivatives for the date presented: | | | | | | | Consolidated Statement of Financial Position | | | | | | | | | | | | | | | | | | | | | | | | | | Net assets (liabilities): | | | Net assets (liabilities) - current | | | Net assets (liabilities) - noncurrent | Other assets / Derivatives | | Total net assets (liabilities) | | |
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| Schedule of the Company’s Recognized Assets and Liabilities |
Below is the impact of this presentation on the Company’s recognized assets and liabilities for the date presented: | | | | | | | Presented without Effects of Netting | | As Presented with Effects of Netting | | | | | | | | | | | | | | | | | | | | | | | | | Total net assets (liabilities) | | | |
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| Schedule of the Company’s Recognized Assets and Liabilities |
Below is the impact of this presentation on the Company’s recognized assets and liabilities for the date presented: | | | | | | | Presented without Effects of Netting | | As Presented with Effects of Netting | | | | | | | | | | | | | | | | | | | | | | | | | Total net assets (liabilities) | | | |
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| Schedule of Gains (Losses) on Derivative Financial Instruments |
The Company recorded the following gains (losses) on derivatives in the Condensed Consolidated Statements of Comprehensive Income (Loss) for the specified periods: | | | | | | | | | | | | | Net gain (loss) on commodity derivatives settlements | | | | | Net gain (loss) on interest rate swaps | | | | | Total gain (loss) on settled derivatives(a) | | | | | Gain (loss) on fair value adjustments of unsettled derivatives(b) | | | | | Total gain (loss) on derivatives | | | | |
(a)Represents the cash settlement of derivatives that were settled during the period. (b)Represents the change in fair value of derivatives, net of the carrying value of derivatives that were settled during the period.
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