Financial Instruments (Tables)
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6 Months Ended |
Jun. 30, 2026 |
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| Financial Instruments [Abstract] |
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| Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments |
The following table presents the carrying amounts, net of discount and deferred financing costs, and estimated fair values of the Company’s debt instruments (in thousands):
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June 30, 2026 |
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December 31, 2025 |
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Carrying
Amount |
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Fair
Value |
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Carrying
Amount |
|
Fair
Value |
|
9.000% Second-Priority Senior Secured Notes |
$ |
615,629 |
|
$ |
651,313 |
|
$ |
614,058 |
|
$ |
649,425 |
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9.375% Second-Priority Senior Secured Notes |
$ |
613,135 |
|
$ |
656,713 |
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$ |
612,131 |
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$ |
656,250 |
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| Schedule of Impact that Derivatives not Qualifying as Hedging Instruments in Condensed Consolidated Statements of Operations |
The following table presents the impact that derivatives, not designated as hedging instruments, had on its Condensed Consolidated Statements of Operations (in thousands):
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2026 |
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2025 |
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2026 |
|
2025 |
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Net cash received (paid) on settled derivative instruments |
$ |
(74,146 |
) |
$ |
33,315 |
|
$ |
(96,616 |
) |
$ |
38,482 |
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Unrealized gain (loss) |
|
104,695 |
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|
53,540 |
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(46,382 |
) |
|
32,520 |
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Price risk management activities income (expense) |
$ |
30,549 |
|
$ |
86,855 |
|
$ |
(142,998 |
) |
$ |
71,002 |
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| Schedule of Contracted Volumes and Weighted Average Prices and will Receive Under the Terms of Derivative Contracts |
The following tables reflect the contracted average daily volumes and weighted average prices under the terms of the Company's derivative contracts as of June 30, 2026:
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Swap Contracts |
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Production Period |
Settlement Index |
Volumes |
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Swap Price |
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Crude oil: |
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(Bbls) |
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(per Bbl) |
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July 2026 – December 2026 |
NYMEX WTI CMA |
|
3,842 |
|
$ |
65.03 |
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January 2027 – June 2027 |
NYMEX WTI CMA |
|
4,000 |
|
$ |
73.75 |
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Natural gas: |
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(MMBtu) |
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(per MMBtu) |
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July 2026 – December 2026 |
NYMEX Henry Hub |
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28,342 |
|
$ |
3.64 |
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Two-Way Collar Contracts |
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Production Period |
Settlement Index |
Volumes |
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Floor Price |
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Ceiling Price |
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Crude oil: |
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(Bbls) |
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(per Bbl) |
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(per Bbl) |
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July 2026 – December 2026 |
NYMEX WTI CMA |
|
20,326 |
|
$ |
60.90 |
|
$ |
72.83 |
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January 2027 – June 2027 |
NYMEX WTI CMA |
|
13,972 |
|
$ |
62.16 |
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$ |
76.71 |
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Natural gas: |
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(MMBtu) |
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(per MMBtu) |
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(per MMBtu) |
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January 2027 – March 2027 |
NYMEX Henry Hub |
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35,000 |
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$ |
3.51 |
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$ |
5.00 |
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| Summary of Additional Information Related to Financial Instruments Measured at Fair Value on Recurring Basis |
The following tables provide additional information related to financial instruments measured at fair value on a recurring basis (in thousands):
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June 30, 2026 |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Assets: |
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Oil and natural gas derivatives |
$ |
— |
|
$ |
28,834 |
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$ |
— |
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$ |
28,834 |
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Liabilities: |
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Oil and natural gas derivatives |
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— |
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(27,504 |
) |
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— |
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(27,504 |
) |
Total net asset (liability) |
$ |
— |
|
$ |
1,330 |
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$ |
— |
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$ |
1,330 |
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December 31, 2025 |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Assets: |
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Oil and natural gas derivatives |
$ |
— |
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$ |
54,420 |
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$ |
— |
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$ |
54,420 |
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Liabilities: |
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Oil and natural gas derivatives |
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— |
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|
(6,708 |
) |
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— |
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|
(6,708 |
) |
Total net asset (liability) |
$ |
— |
|
$ |
47,712 |
|
$ |
— |
|
$ |
47,712 |
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| Schedule of Fair Value of Derivative Financial Instruments |
The following table presents the fair value of derivative financial instruments as well as the potential effect of netting arrangements on the Company's recognized derivative asset and liability amounts (in thousands):
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June 30, 2026 |
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December 31, 2025 |
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Assets |
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Liabilities |
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Assets |
|
Liabilities |
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Oil and natural gas derivatives: |
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Current |
$ |
28,834 |
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$ |
27,504 |
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$ |
54,420 |
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$ |
6,708 |
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Total gross amounts presented on balance sheet |
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28,834 |
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27,504 |
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|
54,420 |
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|
6,708 |
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Less: Gross amounts not offset on the balance sheet |
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24,210 |
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|
24,210 |
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|
6,708 |
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|
6,708 |
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Net amounts |
$ |
4,624 |
|
$ |
3,294 |
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$ |
47,712 |
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$ |
— |
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