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Derivative Instruments
 12 Months Ended
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
Oil and Natural Gas Contracts
The Company uses commodity based derivative contracts to reduce exposure to fluctuations in oil and natural gas prices. While the use of these contracts limits the downside risk for adverse price changes, their use also limits future revenues from favorable price changes. We have not designated our derivative contracts as hedges for accounting purposes, and therefore changes in the fair value of derivatives are included and recognized in other income (expense) in the consolidated statements of operations.
As of December 31, 2023, the Company's oil and natural gas derivative instruments consisted of the following types:
•Fixed Price Swaps – the Company receives a fixed price for the contract and pays a floating market price to the counterparty over a specified period for a contracted volume.
•Costless collars – the combination of a put option (fixed floor) and call option (fixed ceiling), with the options structured so that the premium paid to purchase the put option is offset by the premium received from the sale of the call option. If the market price exceeds the call strike price or falls below the put strike price, we receive the fixed price and pay the market price. If the market price is between the put and the call strike price, no payments are due from either party.
•Basis Protection Swaps – basis swaps are settled based on differences between a fixed price differential and the differential between the settlement prices of two referenced indexes. We receive the fixed price differential and pay the differential between the referenced indexes.
The following table summarizes the open financial derivative positions as of December 31, 2023, related to oil and natural gas production:
Weighted Average Price
Calendar Quarter / YearNotional VolumeFixedPutCall
($ per unit)
Oil Swaps (Bbl)
Q1 2024195,000 $73.35 
Q2 2024225,000 $72.12 
Q3 2024225,000 $72.12 
Q4 2024225,000 $72.12 
2025330,000 $71.86 
Natural Gas Swaps (Mcf)
Q1 2024750,000 $3.48 
Q2 2024600,000 $3.21 
Q3 2024600,000 $3.21 
Q4 2024450,000 $3.67 
2025600,000 $3.85 
Oil Collars (Bbl)
Q1 2024520,000 $61.41 $84.00 
Q2 2024390,000 $61.08 $85.76 
Q3 2024366,000 $61.00 $83.61 
Q4 2024345,000 $60.87 $84.26 
2025728,000 $62.51 $76.90 
Natural Gas Collars (Mcf)
Q1 2024300,000 $3.40 $4.50 
Q2 2024405,000 $3.01 $3.68 
Q3 2024405,000 $3.01 $3.68 
Q4 2024405,000 $3.50 $4.45 
20251,215,000 $3.28 $4.30 
Oil Basis Swaps (Bbl)
Q1 2024330,000 $0.97 
Q2 2024330,000 $0.97 
Q3 2024330,000 $0.97 
Q4 2024330,000 $0.97 

Interest Rate Contracts
The Company entered into floating-to-fixed interest rate swaps, in which it will receive a floating market rate equal to one-month Chicago Mercantile Exchange Term Secured Overnight Financing Rate ("SOFR") Rate and will pay a fixed interest rate to manage future interest rate exposure related to the Company’s Credit Facility.
The following table summarizes the open interest rate derivative positions as of December 31, 2023:
Open Coverage PeriodNotional AmountFixed Rate
(In thousands)
April 2024 - April 2026$30,000 3.18 %
April 2024 - April 2026$50,000 3.04 %
Balance Sheet Presentation of Derivatives    
The following tables present the location and fair value of the Company’s derivative contracts included in the consolidated balance sheets as of December 31, 2023 and 2022:
December 31, 2023
Balance Sheet ClassificationGross Fair ValueAmounts NettedNet Fair Value
(In thousands)
Current derivative assets$8,948 $(3,935)$5,013 
Non-current derivative assets6,687 (4,391)2,296 
Current derivative liabilities(4,295)3,935 (360)
Non-current derivative liabilities(4,391)4,391 — 
Total$6,949 $— $6,949 
December 31, 2022
Balance Sheet ClassificationGross Fair ValueAmounts NettedNet Fair Value
(In thousands)
Current derivative assets$64 $(44)$20 
Non-current derivative assets9 (9)— 
Current derivative liabilities(16,516)44 (16,472)
Non-current derivative liabilities(21)9 (12)
Total$(16,464)$— $(16,464)
The following table presents the components of the Company's gain (loss) on derivatives, net for the periods presented below:
Year Ended December 31,
20232022
(In thousands)
Settlements on derivative contracts
$(17,221)$(75,257)
Non-cash gain on derivatives
23,414 23,683 
Gain (loss) on derivatives, net
$6,193 $(51,574)