Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2026

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables summarize the Company’s assets and liabilities which were measured at fair value on a recurring basis as of the periods presented and their classification within the fair value hierarchy:

	Fair Value Measurement as of June 30, 2026
	Total		Level 1		Level 2		Level 3
	(In thousands)
Liabilities:
Commodity derivative contracts	$	31,665	$	—	$	31,665	$	—
Subordinated note warrants – related party	$	26	$	—	$	—	$	26
Series F Preferred Stock embedded derivatives	$	12,262	$	—	$	—	$	12,262
Series F Preferred Stock anniversary warrants	$	9,492	$	—	$	—	$	9,492
Incremental share right liability	$	15,264	$	15,264	$	—	$	—

	Fair Value Measurement as of December 31, 2025
	Total		Level 1		Level 2		Level 3
	(In thousands)
Assets:
Commodity derivative contracts	$	53,439	$	—	$	53,439	$	—

Liabilities:
Subordinated note warrants – related party	$	316	$	—	$	—	$	316
Series F Preferred Stock embedded derivatives	$	15,853	$	—	$	—	$	15,853
Series F Preferred Stock anniversary warrants	$	90,134	$	—	$	—	$	90,134

Reconciliation of Financial Instruments Presented at Fair Value

The following table presents the changes in the Company’s financial instruments presented at fair value for the periods indicated:

	June 30, 2026			December 31, 2025
	(In thousands)
Subordinated note warrants – related party, at the beginning of the period	$	316		$	4,159
Gain on adjustment to fair value		(290	)		(3,843	)
Subordinated note warrants – related party, at the end of the period	$	26		$	316

Series F Preferred Stock embedded derivatives, at the beginning of the period	$	15,853		$	—
Embedded derivatives recognized at issuance of Series F Preferred Stock		—			25,479
Redemption of Series F Preferred Stock		7,396			—
Gain on adjustment to fair value		(10,987	)		(9,626	)
Series F Preferred Stock embedded derivatives, at the end of the period	$	12,262		$	15,853

Series F Preferred Stock anniversary warrants, at the beginning of the period	$	90,134		$	—
Issuance of Series F Preferred Stock		—			22,115
Redemption of Series F Preferred Stock		(51,324	)		—
(Gain) loss on adjustment to fair value		(29,319	)		68,019
Series F Preferred Stock anniversary warrants, at the end of the period	$	9,492		$	90,134

Incremental share right liability, at the beginning of the period	$	—		$	—
Issuance of incremental share rights		17,757			—
Gain on adjustment to fair value		(2,493	)		—
Incremental share right, at the end of the period	$	15,264		$	—

Fair Value on Financial Instrument Balance Sheets

The following table presents the face value and fair value of each financial instrument presented at fair value on the Company’s condensed consolidated balance sheets as of the periods presented:

	June 30, 2026				December 31, 2025
	Face Value		Fair Value		Face Value		Fair Value
	(In thousands)
Subordinated note warrants – related party	$	—	$	26	$	—	$	316
Series F Preferred Stock embedded derivatives	$	—	$	12,262	$	—	$	15,853
Series F Preferred Stock anniversary warrants	$	—	$	9,492	$	—	$	90,134
Incremental share right liability	$	—	$	15,264	$	—	$	—

Fair Value Instruments Unobservable Market Data

The Company engaged a third–party valuation expert to assist in preparing the fair value of the Subordinated Note Warrants as of June 30, 2026 and December 31, 2025. These estimates were derived using a Monte Carlo simulation model and the significant inputs listed below, which are based on unobservable market data and are therefore considered Level 3 inputs within the fair value hierarchy.

	Key Inputs
Subordinated Note Warrants – Monte Carlo Simulation Model	June 30, 2026			December 31, 2025
Time to termination (years)		3.25			3.75
Stock price – as of period indicated	$	0.72		$	1.69
Exercise price	$	8.89		$	8.89
Risk–free rate		4.07	%		3.55	%
Equity volatility rate		75.0	%		85.0	%

The Company engaged a third-party valuation expert to assist in preparing the fair value of the Series F Preferred Stock embedded derivatives as of the dates below. These estimates were derived using a Monte Carlo simulation model and the significant inputs listed below, which are based on unobservable market data and are therefore considered Level 3 inputs within the fair value hierarchy.

	Key Inputs
Series F Preferred Stock Embedded Derivatives – Monte Carlo Simulation Model	June 30, 2026			April 8, 2026			December 31, 2025
Time to termination (years)		3.24			3.47			3.16
Stock price – as of period indicated	$	0.72		$	2.10		$	1.69
Conversion rate		202.02			202.02			202.02
Stated dividend rate		12.0	%		12.0	%		12.0	%
Transaction discount		28.2	%		30.2	%		32.5	%
Risk-free rate		4.07	%		3.74	%		3.50	%
Preferred equity volatility rate		45.0	%		54.0	%		54.0	%

The Company engaged a third-party valuation expert to assist in preparing the fair value of the Series F Preferred Stock Anniversary Warrants as of the dates below. These estimates were derived using a Monte Carlo simulation model and the significant inputs listed below, which are based on unobservable market data and are therefore considered Level 3 inputs within the fair value hierarchy.

	Key Inputs
Series F Preferred Stock Anniversary Warrants – Monte Carlo Simulation Model	June 30, 2026			June 10, 2026			April 8, 2026			December 31, 2025
Time to termination (years)		4.74			4.79			4.96			5.23
Stock price – as of period indicated	$	0.72		$	0.84		$	2.10		$	1.69
Exercise price	$	1.89		$	1.89		$	1.89		$	2.05
Future value of one Series F Preferred Stock Warrant share	$	0.33		$	0.42		$	1.53		$	0.31
Risk-free rate		4.10	%		4.17	%		3.84	%		3.69	%
Equity volatility rate		80.0	%		80.0	%		90.0	%		85.0	%