DERIVATIVE FINANCIAL INSTRUMENTS (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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| Summary of contracts |
The following is a summary of the Company’s open costless collar contracts at September 30, 2026. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Commodity | | Calculation Period | | Notional Quantity
(Bbl or MMBtu) | | Weighted Average Price Floor
($/Bbl or $/MMBtu) | | Weighted Average Price Ceiling
($/Bbl or $/MMBtu) | | Fair Value of
Asset
(Liability)
(thousands) | | Oil - WTI | | 10/01/2026 - 12/31/2026 | | 6,164,000 | | | $ | 52.75 | | | $ | 66.36 | | | $ | (134,423) | | | Oil - WTI | | 01/01/2027 - 12/31/2027 | | 3,650,000 | | | $ | 55.00 | | | $ | 76.00 | | | (30,811) | | | Natural Gas - Henry Hub | | 10/01/2026 - 12/31/2026 | | 13,800,000 | | | $ | 3.50 | | | $ | 6.70 | | | 6,347 | | | Total open costless collar contracts | | $ | (158,887) | |
The following is a summary of the Company’s open price call contracts at September 30, 2026. | | | | | | | | | | | | | | | | | | | | | | | | | | | | Commodity | | Calculation Period | | Notional Quantity (Bbl) | | Fixed Price
($/Bbl) | | Fair Value of
Asset
(Liability)
(thousands) | | Oil - WTI | | 10/01/26 - 12/31/2026 | | 6,118,000 | | | $ | 100.00 | | | $ | (20,884) | | | Total open price call contracts | | | | | | $ | (20,884) | |
The following is a summary of the Company’s open basis differential swap contracts at September 30, 2026. | | | | | | | | | | | | | | | | | | | | | | | | | | | | Commodity | | Calculation Period | | Notional Quantity (MMBtu) | | Fixed Price
($/MMBtu) | | Fair Value of
Asset
(Liability)
(thousands) | | Natural Gas Basis Differential - Waha | | 10/01/2026 - 12/31/2026 | | 13,800,000 | | | $ | (2.52) | | | $ | (17,816) | | | Natural Gas Basis Differential - Houston Ship Channel | | 10/01/2026 - 09/30/2029 | | 124,944,000 | | | $ | (0.37) | | | (6,104) | | | Total open basis differential swap contracts | | | | | | $ | (23,920) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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| Summary of gross asset balances of derivative instruments |
The following table presents the gross asset and liability fair values of the Company’s commodity price derivative financial instruments and the location of these balances in the interim unaudited condensed consolidated balance sheets as of September 30, 2026 and December 31, 2025 (in thousands). | | | | | | | | | | | | | | | | | | | | | | | | Derivative Instruments | | Gross
amounts
recognized | | Gross amounts
netted in the condensed
consolidated
balance sheets | | Net amounts presented in the condensed
consolidated
balance sheets | | | | September 30, 2026 | | | | | | | | | | Current assets | | $ | 20,399 | | | $ | (13,584) | | | $ | 6,815 | | | | | Other assets | | 3,331 | | | (3,331) | | | — | | | | | Current liabilities | | (211,960) | | | 13,584 | | | (198,376) | | | | | Long-term liabilities | | (15,461) | | | 3,331 | | | (12,130) | | | | | Total | | $ | (203,691) | | | $ | — | | | $ | (203,691) | | | | | December 31, 2025 | | | | | | | | | | Current assets | | $ | 57,450 | | | $ | (23,398) | | | $ | 34,052 | | | | | | | | | | | | | | Current liabilities | | (23,398) | | | 23,398 | | | — | | | | | | | | | | | | | | Total | | $ | 34,052 | | | $ | — | | | $ | 34,052 | | | |
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| Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations |
The following table summarizes the location and aggregate gain (loss) of all derivative financial instruments recorded in the interim unaudited condensed consolidated statements of operations for the periods presented (in thousands). | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended
September 30, | | Nine Months Ended
September 30, | | Type of Instrument | | Location in Condensed Consolidated
Statement of Operations | | 2026 | | 2025 | | 2026 | | 2025 | | Derivative Instrument | | | | | | | | | | | | Oil | | Revenues: Realized loss on derivatives | | $ | (150,651) | | | $ | — | | | $ | (374,285) | | | $ | — | | | Natural Gas | | Revenues: Realized (loss) gain on derivatives | | (9,519) | | | 3,946 | | | 127,134 | | | 13,607 | | | | | | | | | | | | | | Realized (loss) gain on derivatives | | (160,170) | | | 3,946 | | | (247,151) | | | 13,607 | | | Oil | | Revenues: Unrealized loss on derivatives | | (60,189) | | | (4,372) | | | (186,837) | | | (2,790) | | | Natural Gas | | Revenues: Unrealized (loss) gain on derivatives | | (7,538) | | | 24,324 | | | (50,907) | | | (9,500) | | | | | | | | | | | | | | Unrealized (loss) gain on derivatives | | (67,727) | | | 19,952 | | | (237,744) | | | (12,290) | | | Total | | | | $ | (227,897) | | | $ | 23,898 | | | $ | (484,895) | | | $ | 1,317 | |
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