Annual report [Section 13 and 15(d), not S-K Item 405]

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

v3.25.4
DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Contracts on the Balance Sheet
The following presents the impact of the Company’s contracts on its Balance Sheets for the periods indicated.
As of December 31,
2025 2024
Commodity derivative instruments, marked to market:
Derivative assets, current $ 21,468,134  $ 5,497,057 
Derivative assets, noncurrent $ 9,739,430  $ 5,473,375 
Derivative liabilities, current $ 841,193  $ 6,410,547 
Derivative liabilities, noncurrent $ 2,512,692  $ 2,912,745 
Schedule of Components of Gain (Loss) on Derivative Contracts
The components of “Gain (loss) on derivative contracts” from the Statements of Operations are as follows for the respective periods:
For the years ended December 31,
2025 2024 2023
Oil derivatives:
Realized gain (loss) on oil derivatives $ 3,834,312  $ (10,264,202) $ (11,364,484)
Unrealized gain (loss) on oil derivatives 23,367,255  6,859,929  9,462,374 
Gain (loss) on oil derivatives $ 27,201,567  $ (3,404,273) $ (1,902,110)
Natural gas derivatives:
Realized gain (loss) on natural gas derivatives $ 1,617,988  $ 5,070,529  $ 2,279,564 
Unrealized gain (loss) on natural gas derivatives 2,839,284  (4,032,173) 2,389,708 
Gain (loss) on natural gas derivatives $ 4,457,272  $ 1,038,356  $ 4,669,272 
Gain (loss) on derivative contracts $ 31,658,839  $ (2,365,917) $ 2,767,162 
Schedule of Components of Cash (Paid) Received for Commodity Derivative Settlements
The components of “Cash received (paid) for derivative settlements, net” within the Statements of Cash Flows are as follows for the respective periods:
For the years ended December 31,
2025 2024 2023
Cash flows from operating activities
Cash received (paid) for oil derivatives $ 3,834,312  $ (10,264,202) $ (11,364,484)
Cash received (paid) for natural gas derivatives 1,617,988  5,070,529  2,279,564 
Cash received (paid) for derivative settlements, net $ 5,452,300  $ (5,193,673) $ (9,084,920)

Schedule of Derivatives Not Designated as Hedging Instruments
The following tables reflect the details of current derivative contracts as of December 31, 2025 (quantities are in barrels (Bbl) for the oil derivative contracts and in million British thermal units (MMBtu) for the natural gas derivative contracts).
Oil Hedges (WTI) Q1 2026 Q2 2026 Q3 2026 Q4 2026 Q1 2027 Q2 2027 Q3 2027 Q4 2027
Swaps:
Hedged volume (Bbl) 608,350  577,101  171,400  529,000  509,500  492,000  432,000  412,963 
Weighted average swap price $ 67.95  $ 66.50  $ 62.26  $ 65.34  $ 62.82  $ 60.45  $ 61.80  $ 57.59 
Two-way collars:
Hedged volume (Bbl) —  —  379,685  —  —  —  —  — 
Weighted average put price $ —  $ —  $ 60.00  $ —  $ —  $ —  $ —  $ — 
Weighted average call price $ —  $ —  $ 72.50  $ —  $ —  $ —  $ —  $ — 
Gas Hedges (Henry Hub) Q1 2026 Q2 2026 Q3 2026 Q4 2026 Q1 2027 Q2 2027 Q3 2027 Q4 2027
NYMEX Swaps:
Hedged volume (MMBtu) 448,854  1,165,628  600,016  1,072,305  439,678  423,035  1,079,906  1,046,151 
Weighted average swap price $ 4.19  $ 3.82  $ 4.19  $ 3.99  $ 4.02  $ 4.02  $ 3.86  $ 4.02 
Two-way collars:
Hedged volume (MMBtu) 456,850  139,000  648,728  128,000  717,000  694,000  —  — 
Weighted average put price $ 3.50  $ 3.50  $ 3.10  $ 3.50  $ 3.99  $ 3.00  $ —  $ — 
Weighted average call price $ 5.11  $ 5.42  $ 4.24  $ 5.42  $ 5.21  $ 4.32  $ —  $ — 
Gas Hedges (Henry Hub) Q1 2028 Q2 2028 Q3 2028 Q4 2028 Q1 2029 Q2 2029 Q3 2029 Q4 2029
NYMEX Swaps:
Hedged volume (MMBtu) 1,012,567  984,322  956,865  931,539  908,117  886,933  866,585  846,134 
Weighted average swap price $ 3.77  $ 3.77  $ 3.77  $ 3.77  $ 3.67  $ 3.67  $ 3.67  $ 3.67 
Gas Hedges (basis differential) Q1 2026 Q2 2026 Q3 2026 Q4 2026 Q1 2027 Q2 2027 Q3 2027 Q4 2027
El Paso Permian Basin basis swaps:
Hedged volume (MMBtu) —  —  —  —  960,307  636,710  615,547  596,306 
Weighted average spread price (1)
$ —  $ —  $ —  $ —  $ 0.72  $ 0.67  $ 0.67  $ 0.67 
Waha basis swaps:
Hedged volume (MMBtu) —  —  —  —  196,372  480,325  464,360  449,846 
Weighted average spread price (1)
$ —  $ —  $ —  $ —  $ 0.78  $ 0.78  $ 0.78  $ 0.78 
Gas Hedges (basis differential) Q1 2028 Q2 2028 Q3 2028 Q4 2028 Q1 2029 Q2 2029 Q3 2029 Q4 2029
El Paso Permian Basin basis swaps:
Hedged volume (MMBtu) 577,163  561,064  545,413  530,977  517,628  505,552  493,953  482,296 
Weighted average spread price (1)
$ 0.60  $ 0.60  $ 0.60  $ 0.60  $ 0.57  $ 0.57  $ 0.57  $ 0.57 
Waha basis swaps:
Hedged volume (MMBtu) 435,403  423,259  411,453  400,562  390,490  381,381  372,632  363,837 
Weighted average spread price (1)
$ 0.68  $ 0.68  $ 0.68  $ 0.68  $ 0.63  $ 0.63  $ 0.63  $ 0.63 

(1) The oil basis swap hedges are calculated as the fixed price (weighted average spread price above) less the difference between WTI Midland and WTI Cushing, in the issue of Argus Americas Crude.
(1) The gas basis swap hedges are calculated as the Henry Hub natural gas price less the fixed amount specified as the weighted average spread price above.