Derivative Instruments and Hedging Activities (Tables)
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9 Months Ended |
Sep. 30, 2026 |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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| Notional Volume of Commodity Hedges |
At September 30, 2026, the notional volumes of our commodity derivative contracts were:
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Commodity |
Instrument |
Unit |
2026 |
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2027 |
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2028 |
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2029 |
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Natural Gas |
Swaps |
MMBtu/d |
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79,505 |
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77,778 |
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77,230 |
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30,647 |
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Natural Gas |
Basis Swaps |
MMBtu/d |
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537,717 |
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547,116 |
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394,053 |
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44,959 |
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NGL |
Swaps |
Bbl/d |
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42,864 |
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28,962 |
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22,864 |
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11,328 |
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NGL |
Futures |
Bbl/d |
|
62,457 |
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3,474 |
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|
— |
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— |
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Condensate |
Swaps |
Bbl/d |
|
8,263 |
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7,034 |
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11,487 |
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5,861 |
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| Fair Values of Derivative Instruments |
The following table reflects the fair value of our derivative instruments and their location on our Consolidated Balance Sheets as of the periods presented:
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Fair Value as of September 30, 2026 |
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Fair Value as of December 31, 2025 |
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Balance Sheet |
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Derivative |
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Derivative |
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Derivative |
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Derivative |
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Location |
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Assets |
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Liabilities |
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Assets |
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Liabilities |
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Derivatives designated as hedging instruments |
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Commodity contracts |
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Current |
|
$ |
46.6 |
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$ |
(136.2 |
) |
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$ |
137.1 |
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$ |
(14.8 |
) |
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Long-term |
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33.4 |
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(63.7 |
) |
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26.1 |
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(6.9 |
) |
Total derivatives designated as hedging instruments |
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$ |
80.0 |
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$ |
(199.9 |
) |
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$ |
163.2 |
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$ |
(21.7 |
) |
Derivatives not designated as hedging instruments |
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Commodity contracts |
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Current |
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$ |
14.4 |
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$ |
(70.7 |
) |
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$ |
17.6 |
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$ |
(219.3 |
) |
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Long-term |
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5.8 |
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(102.1 |
) |
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8.9 |
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(15.6 |
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Total derivatives not designated as hedging instruments |
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$ |
20.2 |
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$ |
(172.8 |
) |
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$ |
26.5 |
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$ |
(234.9 |
) |
Total current position |
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$ |
61.0 |
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$ |
(206.9 |
) |
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$ |
154.7 |
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$ |
(234.1 |
) |
Total long-term position |
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39.2 |
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(165.8 |
) |
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35.0 |
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(22.5 |
) |
Total derivatives |
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$ |
100.2 |
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$ |
(372.7 |
) |
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$ |
189.7 |
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$ |
(256.6 |
) |
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| Pro Forma Impact of Derivatives Net in Consolidated Balance Sheet |
The following tables reflect the pro forma impact of reporting derivatives on our Consolidated Balance Sheets on a net basis as of the periods presented:
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Gross Presentation |
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Pro Forma Net Presentation |
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September 30, 2026 |
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Asset |
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Liability |
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Collateral |
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Asset |
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Liability |
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Current Position |
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Counterparties with offsetting positions or collateral |
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$ |
56.6 |
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$ |
(206.9 |
) |
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$ |
40.6 |
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$ |
— |
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$ |
(109.7 |
) |
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Counterparties without offsetting positions - assets |
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4.4 |
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— |
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— |
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4.4 |
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— |
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Counterparties without offsetting positions - liabilities |
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— |
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— |
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— |
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— |
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— |
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61.0 |
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(206.9 |
) |
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40.6 |
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4.4 |
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(109.7 |
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Long-Term Position |
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Counterparties with offsetting positions or collateral |
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39.2 |
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(153.9 |
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34.1 |
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— |
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(80.6 |
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Counterparties without offsetting positions - assets |
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— |
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— |
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— |
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— |
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— |
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Counterparties without offsetting positions - liabilities |
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— |
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(11.9 |
) |
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— |
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— |
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(11.9 |
) |
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39.2 |
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(165.8 |
) |
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34.1 |
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— |
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(92.5 |
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Total Derivatives |
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Counterparties with offsetting positions or collateral |
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95.8 |
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(360.8 |
) |
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74.7 |
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— |
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(190.3 |
) |
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Counterparties without offsetting positions - assets |
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4.4 |
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— |
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— |
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4.4 |
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— |
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Counterparties without offsetting positions - liabilities |
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— |
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(11.9 |
) |
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— |
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— |
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(11.9 |
) |
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$ |
100.2 |
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$ |
(372.7 |
) |
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$ |
74.7 |
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$ |
4.4 |
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$ |
(202.2 |
) |
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Gross Presentation |
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Pro Forma Net Presentation |
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December 31, 2025 |
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Asset |
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Liability |
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Collateral |
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Asset |
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Liability |
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Current Position |
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Counterparties with offsetting positions or collateral |
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$ |
133.3 |
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$ |
(234.1 |
) |
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$ |
29.6 |
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$ |
31.3 |
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$ |
(102.5 |
) |
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Counterparties without offsetting positions - assets |
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21.4 |
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— |
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— |
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21.4 |
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— |
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Counterparties without offsetting positions - liabilities |
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— |
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— |
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— |
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— |
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— |
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154.7 |
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(234.1 |
) |
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29.6 |
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52.7 |
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(102.5 |
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Long-Term Position |
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Counterparties with offsetting positions or collateral |
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33.4 |
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(22.5 |
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(2.7 |
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15.3 |
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(7.1 |
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Counterparties without offsetting positions - assets |
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1.6 |
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— |
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— |
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1.6 |
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— |
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Counterparties without offsetting positions - liabilities |
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— |
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— |
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— |
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— |
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— |
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35.0 |
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(22.5 |
) |
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(2.7 |
) |
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16.9 |
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(7.1 |
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Total Derivatives |
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Counterparties with offsetting positions or collateral |
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166.7 |
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(256.6 |
) |
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26.9 |
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46.6 |
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(109.6 |
) |
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Counterparties without offsetting positions - assets |
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23.0 |
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— |
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— |
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23.0 |
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— |
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Counterparties without offsetting positions - liabilities |
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— |
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— |
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— |
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— |
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— |
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$ |
189.7 |
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$ |
(256.6 |
) |
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$ |
26.9 |
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$ |
69.6 |
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$ |
(109.6 |
) |
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| Amounts Recorded in Other Comprehensive Income and Amounts Reclassified from OCI to Revenue |
The following tables reflect amounts recorded in OCI and amounts reclassified from OCI to revenue for the periods presented:
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Gain (Loss) Recognized in OCI on
Derivatives (Effective Portion) |
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Derivatives in Cash Flow |
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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Hedging Relationships |
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2026 |
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2025 |
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2026 |
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2025 |
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Commodity contracts |
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$ |
(254.0 |
) |
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$ |
41.0 |
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$ |
(294.9 |
) |
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$ |
83.0 |
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Gain (Loss) Reclassified from OCI into
Income (Effective Portion) |
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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Location of Gain (Loss) |
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2026 |
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2025 |
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2026 |
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2025 |
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Revenues |
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$ |
(36.6 |
) |
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$ |
22.6 |
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$ |
(26.5 |
) |
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$ |
44.2 |
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| Gain (Loss) Recognized in Income on Derivatives |
The use of mark-to-market accounting for financial assets and liabilities (“financial instruments”) can cause non-cash earnings volatility due to changes in the underlying commodity price indices. For the three months ended September 30, 2026, we had net unrealized mark-to-market gains primarily driven by favorable movement in natural gas forward basis prices on open positions. For the nine months ended September 30, 2026, we had net unrealized mark-to-market gains primarily related to the settlement of derivative liability positions, partially offset by losses resulting from unfavorable movements in natural gas forward basis prices on open positions.
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Location of Gain (Loss) |
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Gain (Loss) Recognized in Income on Derivatives |
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Derivatives Not Designated |
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Recognized in Income on |
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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as Hedging Instruments |
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Derivatives |
|
2026 |
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2025 |
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2026 |
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2025 |
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Commodity contracts |
|
Revenue |
|
$ |
54.7 |
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$ |
(73.1 |
) |
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$ |
(256.9 |
) |
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$ |
(152.1 |
) |
|