Derivative Instruments

12 Months Ended

Dec. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

As of December 31, 2024, the Company had the following outstanding financial commodity derivatives:



	2025								2026
Oil	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		First Quarter		Second Quarter		Third Quarter		Fourth Quarter
WTI oil collars
Volume (MBbl)	5,040		5,096		4,232		4,232		900		910		920		920
Weighted average floor ($/Bbl)	$	61.79	$	61.79	$	61.63	$	61.63	$	62.50	$	62.50	$	62.50	$	62.50
Weighted average ceiling ($/Bbl)	$	79.36	$	79.36	$	78.64	$	78.64	$	69.40	$	69.40	$	69.40	$	69.40

WTI oil swaps
Volume (MBbl)	1,710		1,729		1,748		1,748		900		910		920		920
Weighted average price ($/Bbl)	$	69.18	$	69.18	$	69.18	$	69.18	$	66.14	$	66.14	$	66.14	$	66.14

WTI Midland oil basis swaps
Volume (MBbl)	6,300		6,370		5,520		5,520		1,800		1,820		1,840		1,840
Weighted average differential ($/Bbl)	$	1.07	$	1.07	$	1.02	$	1.02	$	0.95	$	0.95	$	0.95	$	0.95



	2025								2026
Natural Gas	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		First Quarter









NYMEX gas collars
Volume (MMBtu)	45,000,000		45,500,000		46,000,000		46,000,000		27,000,000
Weighted average floor ($/MMBtu)	$	2.85	$	2.85	$	2.85	$	2.85	$	2.75
Weighted average ceiling ($/MMBtu)	$	4.51	$	4.07	$	4.07	$	5.55	$	7.66

Transco Leidy gas basis swaps
Volume (MMBtu)	18,000,000		18,200,000		18,400,000		18,400,000		—
Weighted average differential ($/MMBtu)	$	(0.70)	$	(0.70)	$	(0.70)	$	(0.70)	$	—

Transco Zone 6 Non-NY gas basis swaps
Volume (MMBtu)	9,000,000		9,100,000		9,200,000		9,200,000		—
Weighted average differential ($/MMBtu)	$	(0.29)	$	(0.29)	$	(0.29)	$	(0.29)	$	—

In January 2025, the Company entered into the following financial commodity derivatives:


	2025								2026
Natural Gas	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		First Quarter		Second Quarter		Third Quarter		Fourth Quarter
NYMEX gas collars
Volume (MMBtu)	5,900,000		9,100,000		9,200,000		9,200,000		22,500,000		22,750,000		23,000,000		23,000,000
Weighted average floor ($/MMBtu)	$	3.00	$	3.00	$	3.00	$	3.00	$	3.00	$	3.00	$	3.00	$	3.00
Weighted average ceiling ($/MMBtu)	$	4.46	$	4.46	$	4.46	$	4.46	$	5.79	$	5.79	$	5.79	$	5.79

Effect of Derivative Instruments on the Consolidated Balance Sheet


		Fair Values of Derivative Instruments
		Derivative Assets				Derivative Liabilities
		December 31,				December 31,
(In millions)	Balance Sheet Location	2024		2023		2024		2023
Commodity contracts	Other current assets	$	12	$	85	$	—	$	—
Commodity contracts	Accrued liabilities	—		—		17		—
Commodity contracts	Other assets	—		7		—		—

Commodity contracts	Other liabilities	—		—		4		—
		$	12	$	92	$	21	$	—

Offsetting of Derivative Assets and Liabilities in the Consolidated Balance Sheet


	December 31,
(In millions)	2024		2023
Derivative assets
Gross amounts of recognized assets	$	26	$	93
Gross amounts offset in the consolidated balance sheet	(14)		(1)
Net amounts of assets presented in the consolidated balance sheet	12		92
Gross amounts of financial instruments not offset in the consolidated balance sheet	—		1
Net amount	$	12	$	93

Derivative liabilities
Gross amounts of recognized liabilities	$	35	$	1
Gross amounts offset in the consolidated balance sheet	(14)		(1)
Net amounts of liabilities presented in the consolidated balance sheet	21		—
Gross amounts of financial instruments not offset in the consolidated balance sheet	—		—
Net amount	$	21	$	—

Effect of Derivative Instruments on the Consolidated Statement of Operations


	Year Ended December 31,
(In millions)	2024		2023		2022
Cash received (paid) on settlement of derivative instruments
Gas contracts	$	96	$	280	$	(438)
Oil contracts	2		4		(324)
Non-cash gain (loss) on derivative instruments
Gas contracts	(80)		(72)		149
Oil contracts	(21)		18		150
	$	(3)	$	230	$	(463)

Additional Disclosures about Derivative Instruments

The use of derivative instruments involves the risk that the counterparties will be unable to meet their obligations under the agreements. The Company’s counterparties are primarily commercial banks and financial service institutions that management believes present minimal credit risk and its derivative contracts are with multiple counterparties to minimize its exposure to any individual counterparty. The Company performs both quantitative and qualitative assessments of these counterparties based on their credit ratings and credit default swap rates where applicable.

Certain counterparties to the Company’s derivative instruments are also lenders under its revolving credit agreement and term loan. The Company’s revolving credit agreement, term loan and derivative instruments contain certain cross default and acceleration provisions that may require immediate payment of the Company’s liabilities thereunder if the Company defaults on other material indebtedness. The Company also has netting arrangements with each of its counterparties that allow it to offset assets and liabilities from separate derivative contracts with that counterparty.