Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2024

Derivative Instruments Not Designated as Hedging Instruments [Abstract]

Schedule of notional amounts of outstanding derivative positions

As of September 30, 2024, the Company had commodity derivative contracts outstanding through the fourth quarter of 2026 as summarized in the table below:

	Contract Period
	Fourth Quarter 2024		2025		2026
Oil Derivatives (volumes in MBbl and prices in $ per Bbl):
Swaps
NYMEX WTI Volumes	1,906		1,973		—
Weighted-Average Contract Price	$	74.25	$	72.36	$	—
Collars
NYMEX WTI Volumes	1,917		4,515		—
Weighted-Average Floor Price	$	69.93	$	65.69	$	—
Weighted-Average Ceiling Price	$	82.27	$	81.65	$	—
Basis Swaps
WTI Midland-NYMEX WTI Volumes	1,230		4,556		—
Weighted-Average Contract Price	$	1.21	$	1.18	$	—
WTI Houston MEH-NYMEX WTI Volumes	309		2,130		1,546
Weighted-Average Contract Price	$	1.82	$	1.86	$	2.02
Roll Differential Swaps
NYMEX WTI Volumes	2,334		—		—
Weighted-Average Contract Price	$	0.66	$	—	$	—
Gas Derivatives (volumes in BBtu and prices in $ per MMBtu):
Swaps
NYMEX HH Volumes	1,569		7,321		4,645
Weighted-Average Contract Price	$	3.03	$	3.97	$	3.73
IF Waha Volumes	—		—		1,548
Weighted-Average Contract Price	$	—	$	—	$	3.26
Collars
NYMEX HH Volumes	7,328		29,920		13,438
Weighted-Average Floor Price	$	3.38	$	3.23	$	3.25
Weighted-Average Ceiling Price	$	4.97	$	4.70	$	4.90
Basis Swaps
IF Waha-NYMEX HH Volumes	5,240		20,501		—
Weighted-Average Contract Price	$	(0.73)	$	(0.66)	$	—
IF HSC-NYMEX HH Volumes	5,750		946		—
Weighted-Average Contract Price	$	(0.38)	$	0.0025	$	—
NGL Derivatives (volumes in MBbl and prices in $ per Bbl):
Swaps
OPIS Propane Mont Belvieu Non-TET Volumes	434		396		—
Weighted-Average Contract Price	$	31.85	$	32.86	$	—
OPIS Normal Butane Mont Belvieu Non-TET Volumes	97		45		—
Weighted-Average Contract Price	$	39.84	$	39.48	$	—
OPIS Isobutane Mont Belvieu Non-TET Volumes	28		25		—
Weighted-Average Contract Price	$	41.58	$	41.58	$	—

Schedule of fair value of derivatives in accompanying balance sheets

The following table details the fair value of commodity derivative contracts recorded in the accompanying balance sheets, by category:

	As of September 30, 2024		As of December 31, 2023
	(in thousands)
Derivative assets:
Current assets	$	72,287	$	56,442
Noncurrent assets	11,584		8,672
Total derivative assets	$	83,871	$	65,114
Derivative liabilities:
Current liabilities	$	2,401	$	6,789
Noncurrent liabilities	448		1,273
Total derivative liabilities	$	2,849	$	8,062

Schedule of the potential effects of master netting arrangements

The following table provides a reconciliation between the gross assets and liabilities reflected on the accompanying balance sheets and the potential effects of master netting arrangements on the fair value of the Company’s commodity derivative contracts:

	Derivative Assets as of				Derivative Liabilities as of
	September 30, 2024		December 31, 2023		September 30, 2024		December 31, 2023
	(in thousands)
Gross amounts presented in the accompanying balance sheets	$	83,871	$	65,114	$	(2,849)	$	(8,062)
Amounts not offset in the accompanying balance sheets	(2,849)		(7,362)		2,849		7,362
Net amounts	$	81,022	$	57,752	$	—	$	(700)

Schedule of the components of the net derivative settlement (gain) loss and the net derivative (gain) loss

The following table summarizes the commodity components of the net derivative settlement (gain) loss, and the net derivative (gain) loss line items presented within the accompanying unaudited condensed consolidated statements of cash flows (“accompanying statements of cash flows”) and the accompanying statements of operations, respectively:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2024		2023		2024		2023
	(in thousands)
Net derivative settlement (gain) loss:
Oil contracts	$	487	$	13,446	$	(877)	$	20,144
Gas contracts	(16,735)		(11,643)		(46,639)		(37,495)
NGL contracts	(243)		(1,489)		1,228		(3,047)
Total net derivative settlement (gain) loss	$	(16,491)	$	314	$	(46,288)	$	(20,398)
Net derivative (gain) loss:
Oil contracts	$	(65,633)	$	77,857	$	(29,805)	$	31,172
Gas contracts	(15,291)		(4,437)		(41,624)		(14,655)
NGL contracts	(5,359)		1,935		1,173		(4,165)
Total net derivative (gain) loss	$	(86,283)	$	75,355	$	(70,256)	$	12,352