Derivative Activities (Tables)

9 Months Ended

Sep. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Volumes Hedged and Average Hedge Prices

The following table sets forth our commodity-based derivative volumes by year as of September 30, 2024, excluding our basis swaps which are discussed separately below:

Period	Contract Type	Volume Hedged		Weighted Average Hedge Price
			Swap			Sold Put		Floor		Ceiling
Natural Gas (a)
2024	Swaps	300,000 Mmbtu/day	$		4.21
2024	Collars	416,848 Mmbtu/day						$	3.49	$	5.63
2024	Three-way Collars	133,152 Mmbtu/day				$	2.61	$	3.36	$	4.34
2025	Swaps	400,000 Mmbtu/day	$		4.12
2025	Three-way Collars	138,959 Mmbtu/day				$	2.52	$	3.33	$	4.93
2026	Swaps	100,000 Mmbtu/day	$		4.11
2027	Swaps	30,000 Mmbtu/day	$		4.10
Oil
2024	Swaps	5,000 bbls/day	$		81.35
NGLs (C3-Propane)
2024	Swaps	7,000 bbls/day	$		33.86

(a) We also sold natural gas swaptions of 20,000 Mmbtu/day for calendar year 2026 at a weighted average price of $4.05/Mmbtu that expire in October 2024 and 30,000 Mmbtu/day for calendar year 2027 at a weighted price of $4.10/Mmbtu that expire in October 2024.

Combined Fair Value of Derivatives, by Consolidated Balance Sheets

The combined fair value of derivatives included in the accompanying consolidated balance sheets as of September 30, 2024 and December 31, 2023 is summarized below. The assets and liabilities are netted where derivatives with both gain and loss positions are held by a single counterparty and we have master netting arrangements. The tables below provide additional information relating to our master netting arrangements with our derivative counterparties (in thousands):

	September 30, 2024			December 31, 2023
Derivative assets:
Gross amounts of recognized assets	$	215,587		$	452,378
Gross amounts offset in the consolidated balance sheets		(17,777	)		(9,407	)
Net amounts of assets presented in the consolidated balance sheets	$	197,810		$	442,971

	September 30, 2024			December 31, 2023
Derivative (liabilities):
Gross amounts of recognized (liabilities)	$	(25,110	)	$	(9,736	)
Gross amounts offset in the consolidated balance sheets		17,777			9,407
Net amounts of (liabilities) presented in the consolidated balance sheets	$	(7,333	)	$	(329	)

Effects of Derivatives on Consolidated Statements of Income

The effects of our derivatives on our consolidated statements of income are summarized below (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Commodity swaps	$	54,003		$	14,513		$	85,964		$	266,672
Swaptions		2,019			57			1,152			(2,435	)
Three-way collars		7,059			7,071			15,802			63,285
Collars		19,589			12,566			45,476			184,924
Basis swaps		(35,546	)		4,977			(37,864	)		23,379
Divestiture contingent consideration		—			(790	)		—			(5,730	)
Total derivative fair value income	$	47,124		$	38,394		$	110,530		$	530,095