DERIVATIVES (Tables)

6 Months Ended

Jun. 30, 2026

Derivative Instruments and Hedging Activities Disclosure [Abstract]

We held the following Brent-based contracts for our forecasted oil production as of June 30, 2026:


	Q3 2026		Q4 2026		Q1 2027		Q2 2027		2H 2027		2028
Sold Calls
Barrels per day	36,000		36,000		1,250		5,250		1,681		17,534
Weighted-average price per barrel	$	83.51	$	83.51	$	70.47	$	72.07	$	69.72	$	81.28

Purchased Puts
Barrels per day	36,000		36,000		1,250		5,250		1,681		17,534
Weighted-average price per barrel	$	61.11	$	61.11	$	60.00	$	61.90	$	60.00	$	62.74

Swaps
Barrels per day	42,869		41,703		80,811		65,014		66,404		7,285
Weighted-average price per barrel	$	68.20	$	67.98	$	66.04	$	65.54	$	65.56	$	66.98

At June 30, 2026, we also held the following swaps to hedge purchased natural gas used in our operations as shown in the table below.


	Q3 2026		Q4 2026		Q1 2027		Q2 2027		2H 2027		2028

SoCal Border
MMBtu per day	10,570		9,908		14,044		—		—		—
Weighted-average price per MMBtu	$	4.83	$	4.84	$	4.77	$	—	$	—	$	—

NWPL Rockies
MMBtu per day	91,750		91,750		94,336		94,170		91,663		32,475
Weighted-average price per MMBtu	$	3.76	$	4.17	$	4.18	$	3.78	$	3.92	$	3.45

We report gains and losses on our derivative contracts related to our oil production and our marketing activities in operating revenue on our consolidated statements of operations as shown in the table below:


	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025

	(in millions)				(in millions)
Non-cash gain (loss) from commodity sales derivatives	$	370	$	140	$	(422)	$	162
Net settlements and premiums	(165)		17		(221)		1
Net gain (loss) from commodity sales derivatives	$	205	$	157	$	(643)	$	163

We report gains and losses on our commodity derivative contracts related to purchases of natural gas in operating expenses on our condensed consolidated statements of operations as shown in the table below:


	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025

	(in millions)				(in millions)
Non-cash (gain) loss from natural gas purchase derivatives	$	(20)	$	(4)	$	(8)	$	(22)
Settlements	25		7		37		19
Net loss (gain) from natural gas purchase derivatives	$	5	$	3	$	29	$	(3)

Schedule of Fair Value of Derivatives

The following tables present the fair values of our outstanding commodity derivatives as of June 30, 2026 and December 31, 2025.


June 30, 2026
Classification	Gross Amounts at Fair Value		Netting		Net Fair Value

	(in millions)
Other current assets, net	$	11	$	(9)	$	2
Other noncurrent assets	42		(25)		17

Current liabilities	(156)		9		(147)
Noncurrent liabilities	(95)		25		(70)
	$	(198)	$	—	$	(198)


December 31, 2025
Classification	Gross Amounts at Fair Value		Netting		Net Fair Value

	(in millions)
Other current assets, net	$	193	$	(6)	$	187
Other noncurrent assets	106		(5)		101

Current liabilities	(48)		6		(42)
Noncurrent liabilities	(22)		5		(17)
	$	229	$	—	$	229