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Derivative Financial Instruments
 9 Months Ended
Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
Commodity Derivative Instruments
The Company’s hedging activities primarily consist of derivative instruments entered into in order to hedge against changes in oil and natural gas prices through the use of fixed price swap agreements, costless collars and deferred premium put options. Swaps exchange floating price risk in the future for a fixed price at the time of the hedge. Costless collars set both a maximum (sold ceiling) and a minimum (bought floor) future price. A deferred premium put option represents a bought floor except, unlike a standard put option, the premium is not paid until the expiration of the option. Consistent with its hedging policy, the Company has entered into a series of derivative instruments to hedge a portion of its expected oil and natural gas production through December 31, 2024 and maintains certain natural gas basis swaps through December 31, 2025. Typically, these derivative instruments require payments to (receipts from) counterparties based on specific indices as required by the derivative agreements. Although not risk free, the Company believes these instruments reduce its exposure to oil and natural gas price fluctuations and, thereby, allow the Company to achieve a more predictable cash flow. The Company does not enter into derivative instruments for trading or other speculative purposes.
The Company’s derivative instruments are cash flow hedge transactions in which it is hedging the variability of cash flow related to a forecasted transaction. These transactions are recorded in the Condensed Consolidated Financial Statements in accordance with FASB ASC Topic 815. The Company has accounted for these transactions using the mark-to-market accounting method. Generally, the Company incurs accounting losses on derivatives during periods where prices are rising and gains during periods where prices are falling which may cause significant fluctuations in the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Operations.
The Company nets its derivative instrument fair value amounts executed with each counterparty pursuant to an International Swap Dealers Association Master Agreement (“ISDA”), which provides for net settlement over the term of the contract. The ISDA is a standard contract that governs all derivative contracts entered into between the Company and the respective counterparty. The ISDA allows for offsetting of amounts payable or receivable between the Company and the counterparty, at the election of both parties, for transactions that occur on the same date and in the same currency.
The following table sets forth the Company's open crude oil and natural gas derivative contracts as of September 30, 2023. When aggregating multiple contracts, the weighted average contract price is disclosed.
 Price Swaps
PeriodCommodityVolume
(Bbls / MMBtu)		Weighted Average Price
($/Bbl / $/MMBtu)
Q4 2023Crude Oil653,200$74.25
Q1 - Q4 2024Crude Oil1,719,600$76.28
Q4 2023Crude Oil Basis Swap (1)2,346,000$0.92
Q4 2023Natural Gas1,150,000$3.35
Q4 2023Natural Gas Basis Swap (2)12,880,000$(1.67)
Q1 - Q4 2024Natural Gas Basis Swap (2)36,600,000$(1.05)
Q1 - Q4 2025Natural Gas Basis Swap (2)14,600,000$(0.74)
(1)The basis differential price is between WTI Midland Crude and the WTI NYMEX.
(2)The basis differential price is between W. Texas (WAHA) and the Henry Hub NYMEX.
 Costless Collars
PeriodCommodityVolume
(Bbls / MMBtu)		Bought Floor
($/Bbl / $/MMBtu)		Sold Ceiling
($/Bbl / $/MMBtu)
Q4 2023Crude Oil Costless Collar1,122,400$62.58$84.84
Q1 - Q4 2024Crude Oil Costless Collar732,000$60.00$76.01
Q4 2023Natural Gas Costless Collar7,090,400$3.00$4.91
Q1 - Q4 2024Natural Gas Costless Collar14,640,000$2.56$4.51
 Deferred Premium Puts
PeriodCommodityVolume
(Bbls / MMBtu)		$/Bbl (Put Price)$/Bbl (Net of Premium)
Q4 2023Crude Oil395,600$70.00$64.54
Q1 - Q4 2024Crude Oil915,000$65.00$60.04
The following table summarizes the location and fair value amounts of all derivative instruments in the Condensed Consolidated Balance Sheets as well as the gross recognized derivative assets, liabilities, and amounts offset in the Condensed Consolidated Balance Sheets (in thousands): 
  September 30, 2023December 31, 2022
Derivatives not
designated as hedging
contracts under ASC
Topic 815		Balance Sheet LocationGross
Recognized
Assets /
Liabilities		Gross
Amounts
Offset		Net
Recognized
Assets /
Liabilities		Gross
Recognized
Assets /
Liabilities		Gross
Amounts
Offset		Net
Recognized
Assets /
Liabilities
Commodity contractsDerivative asset - current$5,242 $(3,700)$1,542 $51,803 $(20,472)$31,331 
Commodity contractsDerivative liability - current$54,069 $(3,700)$50,369 $34,525 $(20,472)$14,053 
Commodity contractsDerivative asset - noncurrent$1,615 $(1,108)$507 $9,117 $— $9,117 
Commodity contractsDerivative liability - noncurrent$8,720 $(1,108)$7,612 $— $— $— 
The following table summarizes the location and amounts of the Company’s realized and unrealized gains and losses on derivatives instruments in the Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Cash Flows (in thousands): 
Derivatives not designated as hedging contracts under ASC Topic 815Three Months Ended
September 30,		Nine Months Ended
September 30,
Statement of Cash Flows LocationStatement of Operations Location2023202220232022
Unrealized (loss) gainNot separately presentedNot separately presented$(22,996)$119,209 $(82,326)$28,607 
Realized lossOperating portion of net cash paid in settlement of derivative contractsNot separately presented(22,051)(58,923)(29,494)(169,708)
Total (loss) gain on derivative contracts, net(Loss) gain on derivative contracts, net$(45,047)$60,286 $(111,820)$(141,101)