Derivative Instruments

6 Months Ended

Jun. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Note 5. Derivative Instruments

From time to time the Company enters into derivative contracts to economically hedge against the variability in cash flows associated with future sales of production. The Company recognizes its derivative instruments on the balance sheet as either assets or liabilities measured at fair value. The estimated fair value is based upon various factors, as described in Note 6. Fair Value Measurements.

At June 30, 2024 the Company had outstanding derivative contracts as set forth in the tables below.


Natural gas derivatives
Period and Type of Contract	Average Volumes Hedged			Weighted Average Hedge Price ($/MMBtu)
July 2024 - Sept 2024
Swaps - Henry Hub		660,000	MMBtus/day	$	3.38
Swaps - WAHA		50,000	MMBtus/day	$	2.81
October 2024 - December 2024
Swaps - Henry Hub		697,000	MMBtus/day	$	3.38
January 2025 - December 2025
Swaps - Henry Hub		602,000	MMBtus/day	$	3.90
January 2026 - December 2026				.
Swaps - Henry Hub		635,000	MMBtus/day	$	4.11
January 2027 - December 2027
Swaps - Henry Hub		613,000	MMBtus/day	$	3.92

         Crude oil derivatives

         Weighted Average
Hedge Price ($/Bbl)

         Period and Type of Contract

         Average Volumes Hedged

         Roll Swaps

         Fixed Swaps

         July 2024 - December 2024

Roll Swaps - NYMEX

60,000

Bbls/day

0.73

Fixed Swaps - WTI

83,000

Bbls/day

77.55

         January 2025 - February 2025

Fixed Swaps - WTI

24,000

Bbls/day

80.25

Derivative gains and losses

Cash receipts and payments in the following table reflect the gains or losses on derivative contracts which matured during the applicable period, calculated as the difference between the contract price and the market settlement price of matured contracts. The Company's derivative contracts are settled based upon reported settlement prices on commodity exchanges, with crude oil derivative settlements based on NYMEX West Texas Intermediate (“WTI”) pricing and natural gas derivative settlements based primarily on NYMEX Henry Hub pricing. Non-cash gains and losses below represent the change in fair value of derivative instruments which

continued to be held at period end and the reversal of previously recognized non-cash gains or losses on derivative contracts that matured during the period.


	Three months ended June 30,						Six months ended June 30,
In thousands	2024			2023			2024			2023
Cash received (paid) on derivatives:
Crude oil fixed price swaps	$	(19,677	)	$	34,653		$	(14,848	)	$	39,751
Crude oil NYMEX roll swaps		(440	)		1,167			2,033			2,567
Natural gas basis swaps		—			625			—		$	1,982
Natural gas WAHA swaps		17,898			9,351			26,922			9,363
Natural gas fixed price swaps		89,677			77,924			152,478			93,626
Natural gas collars		—			—			16,069		$	24,380
Natural gas 3-way collars		—			—			—		$	3,741
Cash received (paid) on derivatives, net		87,458			123,720			182,654			175,410
Non-cash gain (loss) on derivatives:
Crude oil fixed price swaps		33,569			74,090			(167,480	)		152,629
Crude oil NYMEX roll swaps		1,578			(109	)		(8,676	)		(717	)
Natural gas basis swaps		—			140			—			(6,601	)
Natural gas WAHA swaps		(12,846	)		(26,430	)		(13,175	)		(10,759	)
Natural gas fixed price swaps		(105,030	)		50,299			(89,865	)		265,991
Natural gas collars		—			1,417			(11,923	)		30,551
Natural gas 3-way collars		—			—			—			(598	)
Non-cash gain (loss) on derivatives, net		(82,729	)		99,407			(291,119	)		430,496
Gain (loss) on derivative instruments, net	$	4,729		$	223,127		$	(108,465	)	$	605,906

Balance sheet offsetting of derivative assets and liabilities

The Company’s derivative contracts are recorded at fair value in the condensed consolidated balance sheets under the captions “Derivative assets,” “Derivative assets, noncurrent,” “Derivative liabilities,” and “Derivative liabilities, noncurrent” as applicable. Derivative assets and liabilities with the same counterparty that are subject to contractual terms which provide for net settlement are reported on a net basis in the condensed consolidated balance sheets.

The following table presents the gross amounts of recognized derivative assets and liabilities, as applicable, the amounts offset under netting arrangements with counterparties, and the resulting net amounts presented in the condensed consolidated balance sheets for the periods presented, all at fair value.


In thousands	June 30, 2024			December 31, 2023
Commodity derivative assets:
Gross amounts of recognized assets	$	261,433		$	510,375
Gross amounts offset on balance sheet		(17,814	)		(1,862	)
Net amounts of assets on balance sheet		243,619			508,513
Commodity derivative liabilities:
Gross amounts of recognized liabilities		(44,624	)		(2,448	)
Gross amounts offset on balance sheet		17,814			1,862
Net amounts of liabilities on balance sheet	$	(26,810	)	$	(586	)

The following table reconciles the net amounts disclosed above to the individual financial statement line items in the condensed consolidated balance sheets.


In thousands	June 30, 2024			December 31, 2023
Derivative assets	$	129,079		$	353,261
Derivative assets, noncurrent		114,540			155,252
Net amounts of assets on balance sheet		243,619			508,513
Derivative liabilities		(26,678	)		—
Derivative liabilities, noncurrent		(132	)		(586	)
Net amounts of liabilities on balance sheet		(26,810	)		(586	)
Total derivative assets (liabilities), net	$	216,809		$	507,927