| Schedule of Fair Value and Classification of Derivative Instruments |
The table below summarizes the fair values and classifications of the Company’s derivative instruments as of June 30, 2026, and December 31, 2025 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30, 2026 |
|
Classification |
|
Balance Sheet Location |
|
Gross Fair
Value |
|
|
Effect of
Netting |
|
|
Net Carrying
Value |
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
Current asset |
|
Other current assets |
|
$ |
13,413 |
|
|
$ |
(4,881 |
) |
|
$ |
8,532 |
|
Long-term asset |
|
Other assets |
|
|
7,385 |
|
|
|
(7,385 |
) |
|
|
- |
|
Total assets |
|
|
|
$ |
20,798 |
|
|
$ |
(12,266 |
) |
|
$ |
8,532 |
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Current liability |
|
Other current liabilities |
|
$ |
4,881 |
|
|
$ |
(4,881 |
) |
|
$ |
- |
|
Long-term liability |
|
Other non-current liabilities |
|
|
8,186 |
|
|
|
(7,385 |
) |
|
|
801 |
|
Total liabilities |
|
|
|
$ |
13,067 |
|
|
$ |
(12,266 |
) |
|
$ |
801 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2025 |
|
Classification |
|
Balance Sheet
Location |
|
Gross Fair
Value |
|
|
Effect of
Netting |
|
|
Net Carrying
Value |
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
Current asset |
|
Other current assets |
|
$ |
9,557 |
|
|
$ |
(4,208 |
) |
|
$ |
5,349 |
|
Long-term asset |
|
Other assets |
|
|
5,990 |
|
|
|
(5,990 |
) |
|
|
- |
|
Total assets |
|
|
|
$ |
15,547 |
|
|
$ |
(10,198 |
) |
|
$ |
5,349 |
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Current liability |
|
Other current liabilities |
|
$ |
4,208 |
|
|
$ |
(4,208 |
) |
|
$ |
- |
|
Long-term liability |
|
Other non-current liabilities |
|
|
10,659 |
|
|
|
(5,990 |
) |
|
|
4,669 |
|
Total liabilities |
|
|
|
$ |
14,867 |
|
|
$ |
(10,198 |
) |
|
$ |
4,669 |
|
|
The table below summarizes the fair values and classifications of the Company’s derivative instruments as of December 31, 2025, and 2024 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2025 |
|
Classification |
|
Balance Sheet Location |
|
Gross Fair
Value |
|
Effect of
Netting |
|
|
Net Carrying
Value |
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current asset |
|
Other current assets |
|
$ |
9,557 |
|
$ |
(4,208 |
) |
|
$ |
5,349 |
|
Long-term asset |
|
Other assets |
|
|
5,990 |
|
|
(5,990 |
) |
|
|
— |
|
Total assets |
|
|
|
$ |
15,547 |
|
$ |
(10,198 |
) |
|
$ |
5,349 |
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liability |
|
Other current liabilities |
|
$ |
4,208 |
|
$ |
(4,208 |
) |
|
$ |
— |
|
Long-term liability |
|
Other non-current liabilities |
|
|
10,659 |
|
|
(5,990 |
) |
|
|
4,669 |
|
Total liabilities |
|
|
|
$ |
14,867 |
|
$ |
(10,198 |
) |
|
$ |
4,669 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2024 |
Classification |
|
Balance Sheet Location |
|
Gross Fair
Value |
|
Effect of
Netting |
|
|
Net Carrying
Value |
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current asset |
|
Other current assets |
|
$ |
2,080 |
|
$ |
(1,927 |
) |
|
$ |
153 |
|
Long-term asset |
|
Other assets |
|
|
1,882 |
|
|
(1,882 |
) |
|
|
— |
|
Total assets |
|
|
|
$ |
3,962 |
|
$ |
(3,809 |
) |
|
$ |
153 |
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liability |
|
Other current liabilities |
|
$ |
1,927 |
|
$ |
(1,927 |
) |
|
$ |
— |
|
Long-term liability |
|
Other non-current liabilities |
|
|
8,321 |
|
|
(1,882 |
) |
|
|
6,439 |
|
Total liabilities |
|
|
|
$ |
10,248 |
|
$ |
(3,809 |
) |
|
$ |
6,439 |
|
|
| Schedule of Changes in Fair Value of Company's Commodity Derivative Instruments |
Changes in the fair values of the Company’s derivative instruments are presented on a net basis in the accompanying consolidated statements of operations and consolidated statements of cash flows and consist of the following for the three and six months ended June 30, 2026, and 2025 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
|
Six Months Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Unrealized gain (loss) of open non-hedge derivative
instruments |
|
$ |
6,655 |
|
|
$ |
8,783 |
|
|
$ |
7,051 |
|
|
$ |
370 |
|
Realized gain (loss) on settlement of non-hedge
derivative instruments |
|
|
4,329 |
|
|
|
1,943 |
|
|
|
(1,376 |
) |
|
|
1,482 |
|
Gain (loss) on commodity derivative instruments |
|
$ |
10,984 |
|
|
$ |
10,726 |
|
|
$ |
5,675 |
|
|
$ |
1,852 |
|
|
Changes in the fair values of the Company’s derivative instruments are presented on a net basis in the accompanying consolidated statements of operations and consolidated statements of cash flows and consist of the following for the years ended December 31, 2025, and 2024 (in thousands):
|
|
|
|
|
|
|
|
|
|
For the Year Ended
December 31, |
|
|
|
2025 |
|
2024 |
|
Unrealized gain (loss) of open non-hedge derivative instruments |
|
$ |
8,121 |
|
$ |
(13,134 |
) |
Realized gain (loss) on settlement of non-hedge derivative instruments |
|
|
8,527 |
|
|
8,716 |
|
Gain (loss) on commodity derivative instruments |
|
$ |
16,648 |
|
$ |
(4,418 |
) |
|
| Schedule of Derivative Instruments |
The Company had the following open derivative contracts for as of June 30, 2026:
|
|
|
|
|
|
|
|
|
Period and Type of Contract |
|
Volume (MMBtu) |
|
|
Weighted
Average Price
(Per MMBtu) |
|
Natural Gas Fixed Price Swaps: |
|
|
|
|
|
|
2026 |
|
|
|
|
|
|
Third Quarter |
|
|
5,087,000 |
|
|
$ |
4.05 |
|
Fourth Quarter |
|
|
5,494,000 |
|
|
$ |
4.06 |
|
2027 |
|
|
|
|
|
|
First Quarter |
|
|
5,197,000 |
|
|
$ |
3.98 |
|
Second Quarter |
|
|
5,035,000 |
|
|
$ |
3.85 |
|
Third Quarter |
|
|
5,088,000 |
|
|
$ |
3.85 |
|
Fourth Quarter |
|
|
5,130,000 |
|
|
$ |
3.85 |
|
2028 |
|
|
|
|
|
|
First Quarter |
|
|
4,597,000 |
|
|
$ |
3.75 |
|
Second Quarter |
|
|
3,524,000 |
|
|
$ |
3.74 |
|
Third Quarter |
|
|
3,517,000 |
|
|
$ |
3.65 |
|
Fourth Quarter |
|
|
3,492,000 |
|
|
$ |
3.66 |
|
2029 |
|
|
|
|
|
|
First Quarter |
|
|
2,536,000 |
|
|
$ |
3.64 |
|
Second Quarter |
|
|
533,000 |
|
|
$ |
3.38 |
|
|
|
|
|
|
|
|
|
|
Period and Type of Contract |
|
Volume (MMBtu) |
|
|
Weighted
Average Price
(Per MMBtu) |
|
Natural Gas TETCO M2 Fixed
Price Swaps: |
|
|
|
|
|
|
2026 |
|
|
|
|
|
|
Third Quarter |
|
|
1,962,000 |
|
|
$ |
(1.07 |
) |
Fourth Quarter |
|
|
1,979,000 |
|
|
$ |
(1.07 |
) |
2027 |
|
|
|
|
|
|
First Quarter |
|
|
2,035,000 |
|
|
$ |
(1.03 |
) |
Second Quarter |
|
|
1,857,000 |
|
|
$ |
(1.04 |
) |
Third Quarter |
|
|
1,872,000 |
|
|
$ |
(1.03 |
) |
Fourth Quarter |
|
|
1,886,000 |
|
|
$ |
(1.04 |
) |
2028 |
|
|
|
|
|
|
First Quarter |
|
|
1,551,000 |
|
|
$ |
(0.91 |
) |
Second Quarter |
|
|
667,000 |
|
|
$ |
(0.94 |
) |
Third Quarter |
|
|
667,000 |
|
|
$ |
(0.96 |
) |
Fourth Quarter |
|
|
675,000 |
|
|
$ |
(0.94 |
) |
2029 |
|
|
|
|
|
|
First Quarter |
|
|
547,000 |
|
|
$ |
(0.96 |
) |
Second Quarter |
|
|
291,000 |
|
|
$ |
(1.03 |
) |
|
|
|
|
|
|
|
|
|
Period and Type of Contract |
|
Volume (Bbls) |
|
|
Weighted
Average Price
(Per Bbl) |
|
WTI Fixed Price Swaps: |
|
|
|
|
|
|
2026 |
|
|
|
|
|
|
Third Quarter |
|
|
44,000 |
|
|
$ |
63.00 |
|
Fourth Quarter |
|
|
41,000 |
|
|
$ |
62.04 |
|
2027 |
|
|
|
|
|
|
First Quarter |
|
|
40,000 |
|
|
$ |
61.74 |
|
Second Quarter |
|
|
34,000 |
|
|
$ |
61.30 |
|
Third Quarter |
|
|
33,000 |
|
|
$ |
61.36 |
|
Fourth Quarter |
|
|
34,000 |
|
|
$ |
61.46 |
|
2028 |
|
|
|
|
|
|
First Quarter |
|
|
32,000 |
|
|
$ |
61.37 |
|
Second Quarter |
|
|
19,000 |
|
|
$ |
62.75 |
|
Third Quarter |
|
|
20,000 |
|
|
$ |
62.75 |
|
Fourth Quarter |
|
|
20,000 |
|
|
$ |
62.75 |
|
2029 |
|
|
|
|
|
|
First Quarter |
|
|
7,000 |
|
|
$ |
62.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
Average |
|
|
Weighted
Average |
|
Period and Type of Contract |
|
Volume (MMBtu) |
|
|
Floor Price
(Per MMBtu) |
|
|
Ceiling Price
(Per MMBtu) |
|
Natural Gas Collar Contracts: |
|
|
|
|
|
|
|
|
|
2026 |
|
|
|
|
|
|
|
|
|
Third Quarter |
|
|
300,000 |
|
|
$ |
3.00 |
|
|
$ |
3.60 |
|
|
The Company had the following open derivative contracts for as of December 31, 2025:
|
|
|
|
|
|
|
|
Period and Type of Contract |
|
Volume
(MMBtu) |
|
Weighted Average
Price
(Per MMBtu) |
|
Natural Gas Fixed Price Swaps: |
|
|
|
|
|
|
|
2026 |
|
|
|
|
|
|
|
First Quarter |
|
|
4,428,000 |
|
$ |
4.12 |
|
Second Quarter |
|
|
4,920,000 |
|
$ |
4.04 |
|
Third Quarter |
|
|
4,896,000 |
|
$ |
4.06 |
|
Fourth Quarter |
|
|
5,379,000 |
|
$ |
4.07 |
|
2027 |
|
|
|
|
|
|
|
First Quarter |
|
|
5,092,000 |
|
$ |
3.99 |
|
Second Quarter |
|
|
4,938,000 |
|
$ |
3.86 |
|
Third Quarter |
|
|
4,990,000 |
|
$ |
3.86 |
|
Fourth Quarter |
|
|
5,025,000 |
|
$ |
3.85 |
|
2028 |
|
|
|
|
|
|
|
First Quarter |
|
|
4,374,000 |
|
$ |
3.76 |
|
Second Quarter |
|
|
3,157,000 |
|
$ |
3.75 |
|
Third Quarter |
|
|
3,164,000 |
|
$ |
3.65 |
|
Fourth Quarter |
|
|
3,149,000 |
|
$ |
3.66 |
|
2029 |
|
|
|
|
|
|
|
First Quarter |
|
|
2,273,000 |
|
$ |
3.64 |
|
Second Quarter |
|
|
533,000 |
|
$ |
3.38 |
|
|
|
|
|
|
|
|
|
Period and Type of Contract |
|
Volume
(MMBtu) |
|
Weighted Average
Price
(Per MMBtu) |
|
Natural Gas TETCO M2 Fixed Price Swaps: |
|
|
|
|
|
|
|
2026 |
|
|
|
|
|
|
|
First Quarter |
|
|
1,959,000 |
|
$ |
(0.45 |
) |
Second Quarter |
|
|
1,958,000 |
|
$ |
(0.81 |
) |
Third Quarter |
|
|
1,962,000 |
|
$ |
(1.02 |
) |
Fourth Quarter |
|
|
1,979,000 |
|
$ |
(1.04 |
) |
2027 |
|
|
|
|
|
|
|
First Quarter |
|
|
2,035,000 |
|
$ |
(0.48 |
) |
Second Quarter |
|
|
1,857,000 |
|
$ |
(0.75 |
) |
Third Quarter |
|
|
1,872,000 |
|
$ |
(0.99 |
) |
Fourth Quarter |
|
|
1,886,000 |
|
$ |
(1.04 |
) |
2028 |
|
|
|
|
|
|
|
First Quarter |
|
|
1,551,000 |
|
$ |
(0.46 |
) |
Second Quarter |
|
|
667,000 |
|
$ |
(0.70 |
) |
Third Quarter |
|
|
667,000 |
|
$ |
(0.98 |
) |
Fourth Quarter |
|
|
675,000 |
|
$ |
(0.94 |
) |
2029 |
|
|
|
|
|
|
|
First Quarter |
|
|
547,000 |
|
$ |
(0.43 |
) |
Second Quarter |
|
|
291,000 |
|
$ |
(0.61 |
) |
|
|
|
|
|
|
|
|
Period and Type of Contract |
|
Volume
(Bbls) |
|
Weighted Average
Price
(Per MMBtu) |
|
WTI Fixed Price Swaps: |
|
|
|
|
|
|
|
2026 |
|
|
|
|
|
|
|
First Quarter |
|
|
21,000 |
|
$ |
64.25 |
|
Second Quarter |
|
|
20,000 |
|
$ |
62.62 |
|
Third Quarter |
|
|
19,000 |
|
$ |
60.34 |
|
Fourth Quarter |
|
|
17,000 |
|
$ |
59.50 |
|
2027 |
|
|
|
|
|
|
|
First Quarter |
|
|
16,000 |
|
$ |
59.50 |
|
Second Quarter |
|
|
16,000 |
|
$ |
59.50 |
|
Third Quarter |
|
|
15,000 |
|
$ |
59.50 |
|
Fourth Quarter |
|
|
14,000 |
|
$ |
59.50 |
|
2028 |
|
|
|
|
|
|
|
First Quarter |
|
|
14,000 |
|
$ |
59.50 |
|
|
|
|
|
|
|
|
|
|
|
|
Period and Type of Contract |
|
Volume (MMBtu) |
|
Weighted Average
Floor Price (Per MMBtu) |
|
Weighted Average
Ceiling Price (Per MMBtu) |
|
Natural Gas Collar Contracts: |
|
|
|
|
|
|
|
|
|
|
2026 |
|
|
|
|
|
|
|
|
|
|
First Quarter |
|
|
720,000 |
|
$ |
3.50 |
|
$ |
4.62 |
|
Second Quarter |
|
|
225,000 |
|
$ |
3.00 |
|
$ |
3.60 |
|
Third Quarter |
|
|
300,000 |
|
$ |
3.00 |
|
$ |
3.60 |
|
|