v3.26.3
Fair Value Measurements (Tables)
6 Months Ended
Jun. 30, 2026
Fair Value Measurements [Abstract]  
Schedule of Assets and Liabilities Which are Measured at Fair Value on a Recurring Basis

The following table sets forth the Company’s assets and liabilities which are measured at fair value on a recurring basis:

 

    Successor  
    June 30, 2026  
(in thousands)   Level 1     Level 2     Level 3     Total  
Assets                        
Current:                        
Commodity derivatives   $     $ 61,747     $     $ 61,747  
Noncurrent:                                
Commodity derivatives           26,141             26,141  
                                 
Liabilities                                
Current:                                
Commodity derivatives           (18,138 )           (18,138 )
Noncurrent:                                
Earnout shares                 (17,772 )     (17,772 )
Commodity derivatives           (17,141 )           (17,141 )
Series A embedded derivative (a)                        
Total, net   $     $ 52,609     $ (17,772 )   $ 34,837  

 

(a) The Company identified embedded features within the Series A Redeemable Preferred Stock requiring bifurcation under ASC 815-15. The fair value of the compound embedded derivative was determined to be $0 as of June 30, 2026, and accordingly was not recorded. The embedded derivative will be remeasured each reporting period.
    Predecessor  
    December 31, 2025  
(in thousands)   Level 1     Level 2     Level 3     Total  
Assets                        
Current:                        
Commodity derivatives   $     $ 9,661     $     $ 9,661  
Noncurrent:                                
Commodity derivatives           6,810             6,810  
                                 
Liabilities                                
Current:                                
Commodity derivatives           (17,126 )           (17,126 )
Noncurrent:                                
Commodity derivatives           (13,544 )           (13,544 )
Total, net   $     $ (14,199 )   $     $ (14,199 )
Schedule of Assumptions The following assumptions were used at each valuation date:
    Successor     Successor  
    June 30,
2026
    March 4,
2026
 
Stock price   $ 12.16     $ 11.05  
Risk-free interest rate     4.10 %     3.60 %
Expected term (in years)     4.7       5.0  
Expected volatility     55.00 %     55.00 %
Dividend yield     13.50 %     13.50 %
Schedule of Reconciliation for the Change in Fair Value

The following table provides a reconciliation for the change in fair value of the Earnout Shares categorized within Level 3 of the fair value hierarchy:

 

(in thousands)   Earnout Liabilities  
Fair value as of March 4, 2026   $ 14,896  
Change in fair value     2,876  
Fair value as of June 30, 2026   $ 17,772