Quarterly report [Sections 13 or 15(d)]

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

v3.26.1
DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Impact of Contracts on Condensed Balance Sheets
The following presents the impact of the Company’s contracts on its Condensed Balance Sheets for the periods indicated.
As of
June 30, 2026 December 31, 2025
Commodity derivative instruments, marked to market:
Derivatives assets, current $ 6,335,601  $ 21,468,134 
Derivative assets, noncurrent $ 10,154,821  $ 9,739,430 
Derivative liabilities, current $ 11,373,096  $ 841,193 
Derivative liabilities, noncurrent $ 12,035,055  $ 2,512,692 
Schedule of Components of Gain (Loss) on Derivative Contracts
The components of “Gain (loss) on derivative contracts” from the Condensed Statements of Operations are as follows for the respective periods:
For the Three Months Ended
For the Six Months Ended
June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025
Oil derivatives:
Realized gain (loss) on oil derivatives $ (19,617,172) $ 433,301  $ (25,675,828) $ (206,966)
Unrealized gain (loss) on oil derivatives 39,356,764  12,145,940  (40,436,306) 14,487,365 
Gain (loss) on oil derivatives $ 19,739,592  $ 12,579,241  $ (66,112,134) $ 14,280,399 
Natural gas derivatives:
Realized gain (loss) on natural gas derivatives $ 1,158,092  $ 244,542  $ 1,940,737  $ 331,215 
Unrealized gain (loss) on natural gas derivatives 2,826,742  1,824,271  5,664,898  (892,350)
Gain (loss) on natural gas derivatives $ 3,984,834  $ 2,068,813  $ 7,605,635  $ (561,135)
Gain (loss) on derivative contracts $ 23,724,426  $ 14,648,054  $ (58,506,499) $ 13,719,264 
Schedule of Components of Cash Received (Paid) for Commodity Derivative Settlements
The components of “Cash received (paid) for derivative settlements, net” within the Condensed Statements of Cash Flows are as follows for the respective periods:
For the Three Months Ended
For the Six Months Ended
June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025
Cash flows from operating activities
Cash received (paid) for oil derivatives $ (19,617,172) $ 433,301  $ (25,675,828) $ (206,966)
Cash received (paid) for natural gas derivatives 1,158,092  244,542  1,940,737  331,215 
Cash received (paid) for derivative settlements, net $ (18,459,080) $ 677,843  $ (23,735,091) $ 124,249 
Schedule of Current Derivative Contracts
The following tables reflect the details of current derivative contracts as of June 30, 2026 (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) Q3 2026 Q4 2026 Q1 2027 Q2 2027 Q3 2027 Q4 2027 Q1 2028 Q2 2028
Swaps:
Hedged volume (Bbl) 263,400  529,000  509,500  492,000  432,000  412,963  —  — 
Weighted average swap price $ 61.77  $ 65.34  $ 62.82  $ 60.45  $ 61.80  $ 57.59  $ —  $ — 
Two-way collars:
Hedged volume (Bbl) 563,685  368,000  2,935  —  32,910  33,435  430,080  415,580 
Weighted average put price $ 60.82  $ 65.00  $ 62.50  $ —  $ 60.00  $ 60.00  $ 55.59  $ 57.50 
Weighted average call price $ 76.19  $ 80.00  $ 73.65  $ —  $ 72.30  $ 72.30  $ 66.02  $ 73.02 
Gas Hedges (Henry Hub) Q3 2026 Q4 2026 Q1 2027 Q2 2027 Q3 2027 Q4 2027 Q1 2028 Q2 2028
NYMEX Swaps:
Hedged volume (MMBtu) 600,016  1,072,305  439,678  423,035  1,079,906  1,046,151  1,012,567  984,322 
Weighted average swap price $ 4.19  $ 3.99  $ 4.02  $ 4.02  $ 3.86  $ 4.02  $ 3.77  $ 3.77 
Two-way collars:
Hedged volume (MMBtu) 648,728  128,000  717,000  694,000  —  —  —  — 
Weighted average put price $ 3.10  $ 3.50  $ 3.99  $ 3.00  $ —  $ —  $ —  $ — 
Weighted average call price $ 4.24  $ 5.42  $ 5.21  $ 4.32  $ —  $ —  $ —  $ — 
Gas Hedges (Henry Hub) Q3 2028 Q4 2028 Q1 2029 Q2 2029 Q3 2029 Q4 2029 Q1 2030
NYMEX Swaps:
Hedged volume (MMBtu) 956,865  931,539  908,117  886,933  866,585  846,134  — 
Weighted average swap price $ 3.77  $ 3.77  $ 3.67  $ 3.67  $ 3.67  $ 3.67  $ — 
Gas Hedges (basis differential) Q3 2026 Q4 2026 Q1 2027 Q2 2027 Q3 2027 Q4 2027 Q1 2028 Q2 2028
Waha basis swaps:
Hedged volume (MMBtu) 374,623  411,451  196,372  480,325  464,360  449,846  435,403  — 
Weighted average spread price (1)
$ 2.15  $ 1.81  $ 0.78  $ 0.78  $ 0.78  $ 0.78  $ 0.68  $ — 
El Paso Permian Basin basis swaps:
Hedged volume (MMBtu) 874,121  788,851  960,307  636,710  615,547  596,306  577,163  — 
Weighted average spread price (1)
$ 2.16  $ 1.92  $ 0.72  $ 0.67  $ 0.67  $ 0.67  $ 0.60  $ — 
(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.