Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2024

Schedule of fixed price swap positions excluding Martica

				Weighted
				Average
Commodity / Settlement Period	Index	Contracted Volume		Price
Propane
April-December 2024	Mont Belvieu Propane-OPIS TET	10,000	Bbl/day	$	33.67	/Bbl

Schedule of call option and embedded put option arrangements

							Embedded
				Call Option			Put Option
Commodity / Settlement Period	Index	Contracted Volume		Strike Price			Strike Price
Natural Gas
April-December 2024	Henry Hub	53,000	MMBtu/day	$	2.477	/MMBtu	$	2.527	/MMBtu
January-December 2025	Henry Hub	44,000	MMBtu/day		2.564	/MMBtu		2.614	/MMBtu
January-December 2026	Henry Hub	32,000	MMBtu/day		2.629	/MMBtu		2.679	/MMBtu

Schedule of natural gas basis swap positions which settle on pricing index to basis differential of NYMEX to TCO

				Weighted Average
Commodity / Settlement Period	Index to Basis Differential	Contracted Volume		Hedged Differential
Natural Gas
April-December 2024	NYMEX to TCO	50,000	MMBtu/day	$	0.530	/MMBtu

Summary of the fair values of derivative instruments, which are not designated as hedges for accounting purposes

				(Unaudited)
	Balance Sheet Location	December 31, 2023		March 31, 2024
Asset derivatives not designated as hedges for accounting purposes:
Embedded derivatives—current	Derivative instruments	$	5,175		6,579
Embedded derivatives—noncurrent	Derivative instruments		5,570		3,929
Total asset derivatives (1)			10,745		10,508
Liability derivatives not designated as hedges for accounting purposes:
Commodity derivatives—current (2)	Derivative instruments		15,236		14,148
Commodity derivatives—noncurrent (2)	Derivative instruments		32,764		25,538
Total liability derivatives (1)			48,000		39,686
Net derivatives liability (1)		$	(37,255)		(29,178)

(1) The fair value of derivative instruments was determined using Level 2 inputs.

(2) As of December 31, 2023, approximately $5 million of commodity derivative liabilities, including $3 million of current commodity derivatives and $2 million of noncurrent commodity derivatives, are attributable to the Company’s consolidated VIE, Martica. As of March 31, 2024, $2 million of current commodity derivative liabilities are attributable to the Company’s consolidated VIE, Martica.

Schedule of gross amounts of recognized derivative assets and liabilities, the amounts offset under netting arrangements with counterparties, and the resulting net amounts

The following table sets forth the gross values of recognized derivative assets and liabilities, the amounts offset under master netting arrangements with counterparties, and the resulting net amounts presented in the condensed consolidated balance sheets as of the dates presented, all at fair value (in thousands):

							(Unaudited)
	December 31, 2023						March 31, 2024
					Net Amounts of						Net Amounts of
	Gross		Gross		Assets		Gross		Gross		Assets
	Amounts		Amounts Offset		(Liabilities) on		Amounts		Amounts Offset		(Liabilities) on
	Recognized		Recognized		Balance Sheet		Recognized		Recognized		Balance Sheet
Commodity derivative assets	$	406		(406)		—		2,310		(2,310)		—
Embedded derivative assets		10,745		—		10,745		10,508		—		10,508
Commodity derivative liabilities		(48,406)		406		(48,000)		(41,996)		2,310		(39,686)

Summary of derivative fair value gains (losses)

The following table sets forth a summary of derivative fair value gains and losses and where such values are recorded in the unaudited condensed consolidated statements of operations and comprehensive income (in thousands):

	Statement of
	Operations	Three Months Ended March 31,
	Location	2023		2024
Commodity derivative fair value gains (1)	Revenue	$	127,080		8,266
Embedded derivative fair value gains (losses) (1)	Revenue		(888)		1,180

(1) The fair value of derivative instruments was determined using Level 2 inputs.

VIE, Martica

Schedule of outstanding commodity derivatives

				Weighted
				Average
Commodity / Settlement Period	Index	Contracted Volume		Price
Natural Gas
April-December 2024	Henry Hub	23,216	MMBtu/day	$	2.33	/MMBtu
January-March 2025	Henry Hub	18,021	MMBtu/day		2.53	/MMBtu
Oil
April-December 2024	West Texas Intermediate	41	Bbl/day	$	44.02	/Bbl
January-March 2025	West Texas Intermediate	39	Bbl/day		45.06	/Bbl