Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2025

Derivative Instruments Not Designated as Hedging Instruments [Abstract]

Schedule of notional amounts of outstanding derivative positions

As of September 30, 2025, the Company had commodity derivative contracts with terms through the third quarter of 2027 as summarized in the table below:

	Contract Period
	Fourth Quarter 2025		2026		2027
Oil Derivatives (volumes in MBbl and prices in $ per Bbl):
Swaps
NYMEX WTI Volumes	1,988		4,613		—
Weighted-Average Contract Price	$	67.91	$	63.03	$	—
Collars
NYMEX WTI Volumes	3,136		5,902		—
Weighted-Average Floor Price	$	60.11	$	56.92	$	—
Weighted-Average Ceiling Price	$	70.28	$	64.84	$	—
Basis Swaps
WTI Midland-NYMEX WTI Volumes	1,178		4,277		—
Weighted-Average Contract Price	$	1.18	$	0.99	$	—
WTI Houston MEH-NYMEX WTI Volumes	526		1,561		—
Weighted-Average Contract Price	$	1.86	$	2.01	$	—
Roll Differential Swaps
NYMEX WTI Volumes	3,450		1,329		—
Weighted-Average Contract Price	$	0.43	$	0.35	$	—
Gas Derivatives (volumes in BBtu and prices in $ per MMBtu):
Swaps
NYMEX HH Volumes	8,015		30,990		7,888
Weighted-Average Contract Price	$	4.37	$	3.94	$	4.34
IF HSC Volumes	—		957		—
Weighted-Average Contract Price	$	—	$	4.07	$	—
IF Waha Volumes	1,134		10,020		4,603
Weighted-Average Contract Price	$	2.02	$	2.34	$	3.64
Collars
NYMEX HH Volumes	7,982		22,598		896
Weighted-Average Floor Price	$	3.25	$	3.49	$	4.00
Weighted-Average Ceiling Price	$	5.31	$	5.14	$	5.60
Basis Swaps
IF Waha-NYMEX HH Volumes	5,046		574		2,503
Weighted-Average Contract Price	$	(0.66)	$	(1.75)	$	(0.74)
IF HSC-NYMEX HH Volumes	—		973		—
Weighted-Average Contract Price	$	—	$	(0.18)	$	—
NGL Derivatives (volumes in MBbl and prices in $ per Bbl):
Swaps
OPIS Ethane Mont Belvieu Non-TET Volumes	123		674		—
Weighted-Average Contract Price	$	13.07	$	12.04	$	—

Commodity Derivative Contracts Entered Into Subsequent to September 30, 2025

Subsequent to September 30, 2025, and through the filing of this report, the Company entered into the following commodity derivative contracts:

	Contract Period
	Fourth Quarter 2025		2026		2027
Gas Derivatives (volumes in BBtu and prices in $ per MMBtu):
Swaps
NYMEX HH Volumes	—		2,743		3,650
Weighted-Average Contract Price	$	—	$	4.08	$	3.62
IF Waha Volumes	—		553		—
Weighted-Average Contract Price	$	—	$	3.05	$	—
Basis Swaps
IF Waha-NYMEX HH Volumes	—		—		996
Weighted-Average Contract Price	$	—	$	—	$	(0.70)

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:

	As of September 30, 2025		As of December 31, 2024
	(in thousands)
Derivative assets:
Current assets	$	68,567	$	48,522
Noncurrent assets	4,677		3,973
Total derivative assets	$	73,244	$	52,495
Derivative liabilities:
Current liabilities	$	9,888	$	7,058
Noncurrent liabilities	4,852		7,142
Total derivative liabilities	$	14,740	$	14,200

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, 2025		December 31, 2024		September 30, 2025		December 31, 2024
	(in thousands)
Gross amounts presented in the accompanying balance sheets	$	73,244	$	52,495	$	(14,740)	$	(14,200)
Amounts not offset in the accompanying balance sheets	(14,534)		(12,995)		14,534		12,995
Net amounts	$	58,710	$	39,500	$	(206)	$	(1,205)

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, and the net derivative gain 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,
	2025		2024		2025		2024
	(in thousands)
Net derivative settlement (gain) loss:
Oil contracts	$	(16,483)	$	487	$	(40,486)	$	(877)
Gas contracts	(22,384)		(16,735)		(48,187)		(46,639)
NGL contracts	—		(243)		2,310		1,228
Total net derivative settlement gain	$	(38,867)	$	(16,491)	$	(86,363)	$	(46,288)
Net derivative (gain) loss:
Oil contracts	$	1,172	$	(65,633)	$	(50,989)	$	(29,805)
Gas contracts	(46,367)		(15,291)		(56,007)		(41,624)
NGL contracts	(284)		(5,359)		425		1,173
Total net derivative gain	$	(45,479)	$	(86,283)	$	(106,571)	$	(70,256)