Derivative Instruments

3 Months Ended

Mar. 31, 2025

As of March 31, 2025, the Company had the following outstanding financial commodity derivatives:


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

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

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



	2025						2026
Natural Gas	Second Quarter		Third Quarter		Fourth Quarter		First Quarter		Second Quarter		Third Quarter		Fourth Quarter
NYMEX gas collars
Volume (MMBtu)	72,800,000		73,600,000		73,600,000		67,500,000		40,950,000		41,400,000		41,400,000
Weighted average floor ($/MMBtu)	$	3.01	$	3.01	$	3.01	$	2.97	$	3.11	$	3.11	$	3.11
Weighted average ceiling ($/MMBtu)	$	4.82	$	4.82	$	5.75	$	6.62	$	5.93	$	5.93	$	5.93

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

Transco Zone 6 Non-NY gas basis swaps
Volume (MMBtu)	18,200,000		18,400,000		18,400,000		—		—		—		—
Weighted average differential ($/MMBtu)	$	(0.49)	$	(0.49)	$	(0.49)	—		—		—		—

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


	2025							2026
Natural Gas		Second Quarter		Third Quarter		Fourth Quarter		First Quarter		Second Quarter		Third Quarter		Fourth Quarter
NYMEX gas collars
Volume (MMBtu)		9,150,000		13,800,000		13,800,000		13,500,000		13,650,000		13,800,000		13,800,000
Weighted average floor ($/MMBtu)		$	3.50	$	3.50	$	3.50	$	3.50	$	3.50	$	3.50	$	3.50
Weighted average ceiling ($/MMBtu)		$	5.21	$	5.21	$	5.21	$	5.24	$	5.24	$	5.24	$	5.24

Waha gas basis swaps
Volume (MMBtu)		9,150,000		13,800,000		13,800,000		13,500,000		13,650,000		13,800,000		13,800,000
Weighted average differential ($/MMBtu)		$	(2.05)	$	(2.05)	$	(2.05)	$	(1.86)	$	(1.86)	$	(1.86)	$	(1.86)

Effect of Derivative Instruments on the Condensed Consolidated Balance Sheet


		Fair Values of Derivative Instruments
		Derivative Assets				Derivative Liabilities
(In millions)	Balance Sheet Location	March 31, 2025		December 31, 2024		March 31, 2025		December 31, 2024

Commodity contracts	Other current assets	$	4	$	12	$	—	$	—
Commodity contracts	Accrued liabilities	—		—		96		17
Commodity contracts	Other assets	3		—		—		—
Commodity contracts	Other liabilities	—		—		10		4
		$	7	$	12	$	106	$	21

Offsetting of Derivative Assets and Liabilities in the Condensed Consolidated Balance Sheet


(In millions)	March 31, 2025		December 31, 2024
Derivative assets
Gross amounts of recognized assets	$	49	$	26
Gross amounts offset in the condensed consolidated balance sheet	(42)		(14)
Net amounts of assets presented in the condensed consolidated balance sheet	7		12
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet	1		—
Net amount	$	8	$	12

Derivative liabilities
Gross amounts of recognized liabilities	$	148	$	35
Gross amounts offset in the condensed consolidated balance sheet	(42)		(14)
Net amounts of liabilities presented in the condensed consolidated balance sheet	106		21
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet	—		—
Net amount	$	106	$	21

Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations


	Three Months Ended March 31,
(In millions)	2025		2024
Cash (paid) received on settlement of derivative instruments
Oil contracts	$	(5)	$	(1)
Gas contracts	(17)		27
Non-cash gain (loss) on derivative instruments
Oil contracts	5		(33)
Gas contracts	(95)		7
	$	(112)	$	—