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Derivative Instruments
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
Commodity derivative contracts. The Company utilizes derivative financial instruments to manage risks related to changes in commodity prices. The Company’s crude oil contracts settle monthly based on the average NYMEX WTI, while crude oil basis swaps settle monthly based on the average fixed differential between NYMEX WTI and the ICE BRENT index price. Natural gas contracts settle monthly based on the average NYMEX Henry Hub natural gas index price.
The Company utilizes derivative financial instruments including fixed-price swaps, two-way and three-way collars, and basis swaps to manage risks related to changes in commodity prices. The Company’s fixed-price swaps are designed to establish a fixed price for the volumes under contract. Two-way collars are designed to establish a minimum price (floor) and a maximum price (ceiling) for the volumes under contract. Three-way collars are designed to establish a minimum price (floor), unless the market price falls below the sold put (sub-floor), at which point the minimum price would be the index price plus the difference between the purchased put and the sold put strike price. The sold call establishes a maximum price (ceiling) for the volumes under contract. A basis swap transaction has an established fixed basis differential corresponding to two floating index prices. Depending on the difference of the two floating index prices in relation to the fixed basis differential, the Company either receives an amount from its counterparty, or pays an amount to its counterparty, equal to the difference multiplied by the volumes under contract. The Company may, from time to time, restructure existing derivative contracts or enter into new transactions to effectively modify the terms of current contracts in order to improve the pricing parameters in existing contracts.
At June 30, 2026, the Company had the following outstanding commodity derivative contracts:
CommoditySettlement
Period		Derivative
Instrument		VolumesWeighted Average Prices
Fixed Price SwapsSub-FloorFloorCeiling
Crude oil2026Three-way collar4,278,000 Bbls$56.56 $73.33 $87.02 
Crude oil2026Two-way collar3,933,000 Bbls$67.49 $76.76 
Crude oil2026Fixed price swaps2,852,000 Bbls$66.82 
Crude oil2027Three-way collar7,969,500 Bbls$49.65 $64.80 $78.12 
Crude oil2027Two-way collar816,000 Bbls$60.00 $65.82 
Crude oil2027Fixed price swaps906,000 Bbls$69.82 
Crude oil2028Three-way collar1,092,000 Bbls$49.58 $65.00 $78.26 
Natural gas2026Two-way collar6,440,000 MMBtu$3.82 $4.33 
Natural gas2026Fixed price swaps14,720,000 MMBtu$3.93 
Natural gas2027Two-way collar4,525,000 MMBtu$3.75 $4.18 
Natural gas2027Fixed price swaps11,840,000 MMBtu$3.94 
Natural gas2028Fixed price swaps1,820,000 MMBtu$3.56 
At June 30, 2026, the Company had the following outstanding crude oil basis swaps:
IndexSettlement
Period		Volumes
Weighted Average Differential(1)
NYMEX WTI - ICE BRENT20262,576,000 Bbls$(5.44)
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(1)The weighted average differential represents the average fixed differential to NYMEX WTI as stated in the related contracts, which is compared to the ICE BRENT index price. If NYMEX WTI combined with the fixed differential as stated in each contract is lower than the ICE BRENT index price at any settlement date, the Company receives the difference. Conversely, if NYMEX WTI combined with the fixed differential as stated in each contract is higher than the ICE BRENT index price, the Company pays the difference.
Subsequent to June 30, 2026 through August 3, 2026, the Company entered into the following commodity derivative contracts:
Weighted Average Prices
CommoditySettlement PeriodDerivative InstrumentVolumesSub-FloorFloorCeiling
Crude oil2026Two-way collar184,000 Bbls$73.25 $84.35 
Crude oil2027Three-way collar276,000 Bbls$50.00 $67.92 $79.47 
Crude oil2027Two-way collar726,000 Bbls$68.67 $77.51 
Crude oil2028Three-way collar365,000 Bbls$50.00 $66.06 $78.69 
Contingent consideration. In connection with the Company’s 2021 divestiture of certain oil and gas properties, the Company was entitled to receive up to three earn-out payments of $25.0 million per year for each of 2023, 2024 and 2025 if the average daily settlement price of NYMEX WTI exceeded $60 per barrel for such year (the “Contingent Consideration”). In each of January 2024, 2025 and 2026, the Company received $25.0 million related to the 2023, 2024 and 2025 earn-out payments, respectively. There are no earn-out payments remaining as of June 30, 2026.
The following table summarizes the location and amounts of gains and losses from the Company’s derivative instruments recorded in the Company’s Condensed Consolidated Statements of Operations for the periods presented:
Three Months Ended June 30,Six Months Ended June 30,
Derivative InstrumentStatements of Operations Location2026202520262025
(In thousands)
Commodity derivativesNet gain (loss) on derivative instruments$107,866 $81,991 $(133,605)$61,030 
Contingent considerationNet gain (loss) on derivative instruments— 240 — 920 
In accordance with the FASB’s authoritative guidance on disclosures about offsetting assets and liabilities, the Company is required to disclose both gross and net information about instruments and transactions eligible for offset in the statement of financial position as well as instruments and transactions subject to an agreement similar to a master netting agreement. The Company’s derivative instruments are presented as assets and liabilities on a net basis by counterparty, as all counterparty contracts provide for net settlement. No margin or collateral balances are deposited with counterparties, and as such, gross amounts are offset to determine the net amounts presented in the Company’s Condensed Consolidated Balance Sheets.
The following table summarizes the location and fair value of all outstanding derivative instruments recorded in the Company’s Condensed Consolidated Balance Sheets:
June 30, 2026
Derivative InstrumentBalance Sheet LocationGross AmountGross Amount OffsetNet Amount
(In thousands)
Derivatives assets:
Commodity derivativesDerivative instruments — current assets$116,099 $(66,511)$49,588 
Commodity derivativesDerivative instruments — non-current assets36,052 (25,961)10,091 
Total derivatives assets$152,151 $(92,472)$59,679 
Derivatives liabilities:
Commodity derivativesDerivative instruments — current liabilities$82,581 $(66,511)$16,070 
Commodity derivativesDerivative instruments — non-current liabilities28,747 (25,961)2,786 
Total derivatives liabilities$111,328 $(92,472)$18,856 
December 31, 2025
Derivative InstrumentBalance Sheet LocationGross AmountGross Amount OffsetNet Amount
(In thousands)
Derivatives assets:
Commodity derivativesDerivative instruments — current assets$93,850 $(16,538)$77,312 
Commodity derivativesDerivative instruments — non-current assets24,413 (16,047)8,366 
Total derivatives assets$118,263 $(32,585)$85,678 
Derivatives liabilities:
Commodity derivativesDerivative instruments — current liabilities$16,538 $(16,538)$— 
Commodity derivativesDerivative instruments — non-current liabilities16,047 (16,047)— 
Total derivatives liabilities$32,585 $(32,585)$—