v3.26.1
FAIR VALUE
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE FAIR VALUE
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.  Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize
the use of unobservable inputs.  The Company uses a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following:

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Financial Assets and Liabilities

As required, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels.  The following tables set forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2026 and December 31, 2025:

Fair Value Measurements at
June 30, 2026 Using
(In thousands)
(Level 1)
(Level 2)
(Level 3)		Effect of Counterparty NettingTotal
Commodity Derivatives – Current Assets$— $110,343 $— $(81,392)$28,951 
Commodity Derivatives – Noncurrent Assets— 45,443 — (36,491)8,952 
Commodity Derivatives – Current Liabilities— (106,433)— 81,392 (25,041)
Commodity Derivatives – Noncurrent Liabilities— (292,359)— 36,491 (255,868)
Interest Rate Derivatives – Current Assets— 1,963 — — 1,963 
Interest Rate Derivatives – Noncurrent Assets— 774 — — 774 
Contingent Consideration – Noncurrent Liabilities— (6,614)— — (6,614)
Total$— $(246,883)$— $— $(246,883)

Fair Value Measurements at
December 31, 2025 Using
 (In thousands)
(Level 1)
(Level 2)
(Level 3)		Effect of Counterparty NettingTotal
Commodity Derivatives – Current Assets$— $224,726 $— $(58,100)$166,626 
Commodity Derivatives – Noncurrent Assets— 30,986 — (27,950)3,036 
Commodity Derivatives – Current Liabilities— (58,100)— 58,100 — 
Commodity Derivatives – Noncurrent Liabilities— (75,697)— 27,950 (47,747)
Interest Rate Derivatives – Current Assets— 52 — — 52 
Interest Rate Derivatives – Noncurrent Liabilities— (355)— — (355)
Total$— $121,612 $— $— $121,612 

Commodity Derivatives. The Level 2 instruments presented in the tables above include commodity derivative instruments (see Note 10).  The fair value of the Company’s commodity derivative instruments is determined based upon future prices, volatility and time to maturity, among other things. Counterparty statements are utilized to determine the value of the commodity derivative instruments and are reviewed and corroborated using various methodologies and significant observable inputs.  The Company’s and the counterparties’ nonperformance risk is evaluated.  The fair value of commodity derivative contracts is
reflected in the condensed consolidated balance sheets.  The current derivative asset and liability amounts represent the fair values expected to be settled in the subsequent twelve months.

Interest Rate Derivatives. The Level 2 instruments presented in the tables above include interest rate derivative instruments (see Note 10).  The fair value of the Company’s interest rate derivative instruments is determined based upon contracted notional amounts, active market-quoted interest yield curves, and time to maturity, among other things. Counterparty statements are utilized to determine the value of the interest rate derivative instruments and are reviewed and corroborated using various methodologies and significant observable inputs. The Company’s and the counterparties’ nonperformance risk is evaluated.  The fair value of interest rate derivative contracts is reflected in the condensed consolidated balance sheets.  The current interest rate derivative asset balances represent the fair values expected to be settled in the subsequent twelve months.

Contingent Consideration. The Level 2 instruments presented in the tables above include contingent consideration liabilities (see Note 3). The fair value of the Company's contingent consideration liability is determined using a Monte Carlo simulation model. The significant inputs used in the valuation include (i) the forward NYMEX WTI oil price curve, (ii) NYMEX WTI volatility and (iii) risk-free rates based on U.S. Treasury rates, which are observable in the marketplace or can be derived from observable market data. These inputs are reviewed and corroborated using various methodologies and significant observable inputs. The fair value of the contingent consideration liability is reflected in the condensed consolidated balance sheets. Changes in the fair value of this liability are included in other income (expense) in the Company's condensed consolidated statements of operations.

Fair Value of Other Financial Instruments

The carrying amounts of cash equivalents, receivables and payables approximate fair value due to the highly liquid or short-term nature of these instruments.

Long-term debt is not presented at fair value in the condensed consolidated balance sheets, as it is recorded at carrying value, net of unamortized debt issuance costs and unamortized premium (see Note 4).  The fair value of the Company’s Convertible Notes due 2029, Senior Notes due 2031 and Senior Notes due 2033 was $670.4 million, $514.4 million and $718.7 million, respectively, at June 30, 2026. These fair values are based on market quotes that represent Level 2 inputs.

There is no active market for the Revolving Credit Facility. The recorded value of the Revolving Credit Facility approximates its fair value because of its floating rate structure based on the SOFR spread, secured interest, and the Company’s borrowing base utilization. The fair value measurement for the Revolving Credit Facility represents Level 2 inputs.

Non-Financial Assets and Liabilities

The Company estimates asset retirement obligations pursuant to the relevant accounting standards.  The initial measurement of asset retirement obligations at fair value is calculated using discounted cash flow techniques and based on internal estimates of future retirement costs associated with oil and natural gas properties.  Given the unobservable nature of the inputs, including plugging costs and reserve lives, the initial measurement of the asset retirement obligations liability is deemed to use Level 3 inputs.  Asset retirement obligations incurred and acquired during the six months ended June 30, 2026 and 2025 were approximately $2.5 million and $2.2 million, respectively.

For all transactions accounted for as business combinations, the Company uses the acquisition method of accounting. In those instances, the Company conducts assessments of net assets acquired and recognizes amounts for identifiable assets acquired and liabilities assumed at the estimated acquisition date fair values, while transaction costs associated with the acquisitions are expensed as incurred. The Company makes various assumptions in estimating the fair values of assets acquired and liabilities assumed. The most significant assumptions relate to the estimated fair value of oil and natural gas properties. The fair value of these properties is measured using a discounted cash flow model that converts future cash flows to a single discounted amount. The assumptions are unobservable inputs and represent Level 3 inputs under the fair value hierarchy. Key inputs include: (i) estimates of future production volumes, (ii) future commodity prices (adjusted for basis differentials), including WTI oil pricing ranging from $63.70 to $86.31 per barrel and Henry Hub gas pricing ranging from $1.37 to $3.83 per MMBtu, (iii) estimates of lease operating, development and abandonment costs, (iv) risk adjustment factors applied to proved reserves, ranging from 90% to 100%, and to unproved reserves, ranging from 60% to 75%, and (v) the application of a discount rate, ranging from 9.5% to 10%.

Though the Company believes the methods used to estimate fair value are consistent with those used by other market participants, the use of other methods or assumptions could result in a different estimate of fair value.  There were no transfers of financial assets or liabilities between Level 1, Level 2 or Level 3 inputs for the six months ended June 30, 2026.