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Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2024
Financial Instruments [Abstract]  
Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments

The following table presents the carrying amounts, net of discount, premium and deferred financing costs, and estimated fair values of the Company’s debt instruments (in thousands):

 

June 30, 2024

 

December 31, 2023

 

 

Carrying
Amount

 

Fair
Value

 

Carrying
Amount

 

Fair
Value

 

9.000% Second-Priority Senior Secured Notes – due February 2029

$

609,712

 

$

655,794

 

$

—

 

$

—

 

9.375% Second-Priority Senior Secured Notes – due February 2031

$

609,333

 

$

659,188

 

$

—

 

$

—

 

12.00% Second-Priority Senior Secured Notes – due January 2026

$

—

 

$

—

 

$

601,353

 

$

655,130

 

11.75% Senior Secured Second Lien Notes – due April 2026

$

—

 

$

—

 

$

234,221

 

$

233,410

 

Bank Credit Facility – matures March 2027

$

216,854

 

$

225,000

 

$

190,100

 

$

200,000

 
Schedule of Impact that Derivatives not Qualifying as Hedging Instruments in Condensed Consolidated Statements of Operations

The following table presents the impact that derivatives, not designated as hedging instruments, had on its Condensed Consolidated Statements of Operations (in thousands):

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2024

 

2023

 

2024

 

2023

 

Net cash received (paid) on settled derivative instruments

$

(17,518

)

$

8,162

 

$

(21,012

)

$

(4,161

)

Unrealized gain (loss)

 

19,820

 

 

18,035

 

 

(63,748

)

 

89,295

 

Price risk management activities income (expense)

$

2,302

 

$

26,197

 

$

(84,760

)

$

85,134

 
Schedule of Contracted Volumes and Weighted Average Prices and will Receive Under the Terms of Derivative Contracts

The following tables reflect the contracted average daily volumes and weighted average prices under the terms of the Company's derivative contracts as of June 30, 2024:

Swap Contracts

 

Production Period

Settlement Index

Volumes

 

Swap Price

 

Crude oil:

 

(Bbls)

 

(per Bbl)

 

July 2024 – December 2024

NYMEX WTI CMA

 

38,185

 

$

76.52

 

January 2025 – December 2025

NYMEX WTI CMA

 

22,926

 

$

73.41

 

Natural gas:

 

(MMBtu)

 

(per MMBtu)

 

July 2024 – December 2024

NYMEX Henry Hub

 

32,500

 

$

2.84

 

January 2025 – December 2025

NYMEX Henry Hub

 

43,630

 

$

3.55

 

 

Two-Way Collar Contracts

 

Production Period

Settlement Index

Volumes

 

Floor Price

 

Ceiling Price

 

Crude oil:

 

(Bbls)

 

(per Bbl)

 

(per Bbl)

 

July 2024 – December 2024

NYMEX WTI CMA

 

1,000

 

$

70.00

 

$

75.00

 

January 2025 – March 2025

NYMEX WTI CMA

 

3,000

 

$

65.00

 

$

84.35

 

Natural gas:

 

(MMBtu)

 

(per MMBtu)

 

(per MMBtu)

 

July 2024 – December 2024

NYMEX Henry Hub

 

10,000

 

$

4.00

 

$

6.90

 

 

Long Puts

 

Production Period

Settlement Index

Volumes

 

Strike Price

 

Deferred Premium Price

 

Crude oil:

 

(Bbls)

 

(per Bbl)

 

(per Bbl)

 

July 2024 – December 2024

NYMEX WTI CMA

 

4,000

 

$

70.00

 

$

6.28

 

Natural gas:

 

(MMBtu)

 

(per MMBtu)

 

(per MMBtu)

 

August 2024 – December 2024

NYMEX Henry Hub

 

13,660

 

$

2.90

 

$

0.40

 

 

Swaps with Sold Puts

 

Production Period

Settlement Index

Volumes

 

Swap Price

 

Strike Price

 

Crude oil:

 

(Bbls)

 

(per Bbl)

 

(per Bbl)

 

July 2024 – December 2024

NYMEX WTI CMA

 

1,000

 

$

72.20

 

$

60.00

 

 
Summary of Additional Information Related to Financial Instruments Measured at Fair Value on Recurring Basis

The following tables provide additional information related to financial instruments measured at fair value on a recurring basis (in thousands):

 

June 30, 2024

 

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Assets:

 

 

 

 

 

 

 

 

Oil and natural gas derivatives

$

—

 

$

19,196

 

$

—

 

$

19,196

 

Liabilities:

 

 

 

 

 

 

 

 

Oil and natural gas derivatives

 

—

 

 

(53,048

)

 

—

 

 

(53,048

)

Total net asset (liability)

$

—

 

$

(33,852

)

$

—

 

$

(33,852

)

 

December 31, 2023

 

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Assets:

 

 

 

 

 

 

 

 

Oil and natural gas derivatives

$

—

 

$

53,703

 

$

—

 

$

53,703

 

Liabilities:

 

 

 

 

 

 

 

 

Oil and natural gas derivatives

 

—

 

 

(8,100

)

 

—

 

 

(8,100

)

Total net asset (liability)

$

—

 

$

45,603

 

$

—

 

$

45,603

 

 
Schedule of Fair Value of Derivative Financial Instruments The following table presents the fair value of derivative financial instruments as well as the potential effect of netting arrangements on the Company's recognized derivative asset and liability amounts (in thousands):

 

June 30, 2024

 

December 31, 2023

 

 

Assets

 

Liabilities

 

Assets

 

Liabilities

 

Oil and natural gas derivatives:

 

 

 

 

 

 

 

 

Current

$

16,412

 

$

51,607

 

$

36,152

 

$

7,305

 

Non-current

 

2,784

 

 

1,441

 

 

17,551

 

 

795

 

Total gross amounts presented on balance sheet

 

19,196

 

 

53,048

 

 

53,703

 

 

8,100

 

Less: Gross amounts not offset on the balance sheet

 

14,424

 

 

14,424

 

 

8,100

 

 

8,100

 

Net amounts

$

4,772

 

$

38,624

 

$

45,603

 

$

—