Derivative Activities

12 Months Ended

Dec. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Activities

(8) Derivative Activities

The following table sets forth the derivative volumes and fair values by expiration year as of December 31, 2024, excluding our basis swaps which are discussed separately below. All fair values presented in the table utilize Level 2 inputs, except where noted:

Period	Contract Type	Volume Hedged		Weighted Average Hedge Price
			Swap			Sold Put		Floor		Ceiling		Fair Market Value (in thousands)
Natural Gas (a)
2025	Swaps	400,000 Mmbtu/day	$		4.12							$	84,763
2025	Three-way Collars	158,822 Mmbtu/day				$	2.53	$	3.30	$	4.82	$	11,894
2026	Swaps	200,000 Mmbtu/day	$		4.05							$	10,154
2027	Swaps	30,000 Mmbtu/day	$		4.10							$	2,557

(a) We also sold natural gas swaptions of 150,000 Mmbtu/day for calendar year 2026 at a weighted average price of $4.00/Mmbtu that expire between June and August 2025. The fair value of these contracts as of December 31, 2024, which utilizes Level 3 inputs, was a net derivative liability of $13.2 million.

Derivatives in Level 2 are measured at fair value with a market approach using third-party pricing services, which have been corroborated with data from active markets or broker quotes. Derivatives in Level 3 use the same approach, but will also utilize unobservable pricing inputs that are significant to overall value.

Basis Swap Contracts

In addition to the commodity derivatives described above, at December 31, 2024, we had natural gas basis swap contracts which lock in the differential between NYMEX and certain of our physical pricing points in Appalachia. These contracts settle monthly through December 2028 and include a total volume of 266,640,000 Mmbtu. The fair value of these contracts, which utilizes Level 2 inputs, was a net derivative liability of $29.2 million as of December 31, 2024.

Derivative Assets and Liabilities

The combined fair value of derivatives included in the accompanying consolidated balance sheets as of December 31, 2024 and 2023 is summarized below (in thousands). 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.

	December 31, 2024			December 31, 2023
Derivative assets:
Gross amounts of recognized assets	$	112,359		$	452,378
Gross amounts offset in the consolidated balance sheets		(25,261	)		(9,407	)
Net amounts of assets presented in the consolidated balance sheets	$	87,098		$	442,971

	December 31, 2024			December 31, 2023
Derivative (liabilities):
Gross amounts of recognized (liabilities)	$	(45,383	)	$	(9,736	)
Gross amounts offset in the consolidated balance sheets		25,261			9,407
Net amounts of (liabilities) presented in the consolidated balance sheets	$	(20,122	)	$	(329	)

Derivative Fair Value Income

The effects of our derivatives on our consolidated statements of income for the last three years are summarized below (in thousands):

	Year Ended December 31,
	2024			2023			2022
Natural gas derivatives	$	54,732		$	814,113		$	(1,122,332	)
NGLs derivatives		3,744			—			(9,318	)
Oil derivatives		(1,750	)		12,121			(67,763	)
Freight		—			—			(33	)
Divestiture contingent consideration		—			(5,080	)		10,940
Total derivative fair value income (loss)	$	56,726		$	821,154		$	(1,188,506	)