DERIVATIVES AND FAIR VALUE

6 Months Ended

Jun. 30, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVES AND FAIR VALUE

DERIVATIVES AND FAIR VALUE

We have entered into derivative contracts primarily with counterparties that are also lenders under the 2025 RBL Facility (defined below) to hedge price risk associated with a portion of our oil, natural gas and NGLs production. Pricing for these derivative contracts are based on certain market indexes and prices at our primary sales points. See table below for the list of outstanding contracts as of June 30, 2025:

		Settlement Period
Instrument	Index	July 2025 to September 2025		October 2025 to December 2025		January 2026 to March 2026		April 2026 to June 2026
Crude oil:
Swaps	Dated Brent
Total volumes (Bbls)		100,000		—		—		—
Weighted average fixed price ($/Bbl)		$	65.45	$	—	$	—	$	—
Collars	Dated Brent
Total volumes (Bbls)		405,000		480,000		400,000		360,000
Weighted average floor price ($/Bbl)		$	63.02	$	60.83	$	62.29	$	61.88
Weighted average ceiling price ($/Bbl)		$	74.36	$	67.81	$	68.63	$	67.95
Natural Gas:
Swaps	AECO 7A
Total volumes (GJs)(a)		342,000		114,000		—		—
Weighted average fixed price (CAD/GJ)		$	2.15	$	2.15	$	—	$	—

(a) One gigajoule (GJ) equals one billion joules (J). A gigajoule of natural gas is approximately 25.5 cubic meters standard conditions.

The following table sets forth the gain (loss) on derivative instruments on the Company’s unaudited condensed consolidated statements of operations and comprehensive income:

		Three Months Ended June 30,				Six Months Ended June 30,
Derivative Item	Statements of Operations Line	2025		2024		2025		2024
		(in thousands)				(in thousands)
Commodity derivatives	Cash settlements received (paid) on matured derivative contracts, net	$	91	$	(9)	$	214	$	(33)
	Unrealized gain (loss)	309		266		112		(557)
	Derivative instruments gain (loss), net	$	400	$	257	$	326	$	(590)