DERIVATIVES

12 Months Ended

Dec. 31, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVES

DERIVATIVES

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. In addition, pursuant to the terms of the 2025 RBL Facility agreement, if the aggregate borrowings under the 2025 RBL Facility exceeds 35% of the lower of (a) the available total commitments and (b) the applicable borrowing base amount, we are required to enter into commodity price hedge positions covering certain volumes of anticipated future production set out in the banking case. Pricing for these derivative contracts is based on certain market indexes and prices at our primary sales points. See table below for the list of outstanding contracts as of December 31, 2025:

		Settlement Period
Instrument	Index	January 2026 - March 2026		April 2026 - June 2026		July 2026 - September 2026		October 2026 - December 2026
Crude oil:
Collars	Dated Brent
Total volumes (Bbls)		400,000		360,000		75,000		—
Weighted average floor price ($/Bbl)		$	62.29	$	61.88	$	65.00	$	—
Weighted average ceiling price ($/Bbl)		$	68.63	$	67.95	$	71.00	$	—
Natural Gas(a):
Swaps	AECO 7A
Total volumes (GJs)(b)		225,000		150,000		150,000		50,000
Weighted average fixed price (CAD/GJ)		$	2.99	$	2.80	$	2.80	$	2.80

(a) Natural gas hedge contracts were assumed by the third-party purchaser upon closing of the sale pursuant to the Canada APA.

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

See Note 2. Summary of Significant Accounting Policies for further details on the measurement of our derivative assets at fair value.

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

		Year Ended December 31,
Derivative Item	Statements of Operations Line	2025		2024		2023
		(in thousands)
Commodity derivatives	Cash settlements paid on matured derivative contracts, net	$	(48)	$	(453)	$	(127)
	Unrealized gain (loss)	2,924		(292)		359
	Derivative instruments gain (loss), net	$	2,876	$	(745)	$	232