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Derivative Instruments
 3 Months Ended
Mar. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
Oil and Natural Gas Contracts
The Company uses commodity based derivative contracts to reduce exposure to fluctuations in oil and natural gas prices. While the use of these contracts limits the downside risk for adverse price changes, their use also limits future revenues from favorable price changes. We have not designated our derivative contracts as hedges for accounting purposes, and therefore changes in the fair value of derivatives are included and recognized in other income (expense) in the condensed consolidated statement of operations.
As of March 31, 2023, the Company's oil and natural gas derivative instruments consisted of fixed price swaps, costless collars, and basis protection swaps. The following table summarizes the open financial derivative positions as of March 31, 2023, related to oil and natural gas production:
Weighted Average Price
Calendar Quarter / YearNotional VolumeFixedPutCall
($ per unit)
Oil Swaps (Bbl)
Q2 2023468,000 $66.65 $— $— 
Q3 2023362,000 $66.76 $— $— 
Q4 2023302,000 $66.18 $— $— 
2024240,000 $71.60 $— $— 
Natural Gas Swaps (Mcf)
Q2 2023450,000 $2.60 $— $— 
Q3 2023450,000 $2.60 $— $— 
Q4 2023400,000 $3.23 $— $— 
20241,500,000 $3.43 $— $— 
2025375,000 $4.05 $— $— 
Oil Collars (Bbl)
Q2 2023300,000 $— $71.50 $88.98 
Q3 2023330,000 $— $68.64 $88.85 
Q4 2023330,000 $— $68.64 $88.85 
20241,621,000 $— $61.12 $84.39 
2025378,000 $— $60.00 $77.23 
Natural Gas Collars (Mcf)
Q2 2023300,000 $— $2.55 $3.20 
Q3 2023300,000 $— $2.55 $3.20 
Q4 2023300,000 $— $3.12 $4.07 
20241,065,000 $— $3.19 $4.14 
2025255,000 $— $3.65 $4.95 
Oil Basis (Bbl)
Q2 2023360,000 $1.28 $— $— 
Q3 2023360,000 $1.28 $— $— 
Q4 2023360,000 $1.28 $— $— 
2024960,000 $0.87 $— $— 
Balance Sheet Presentation of Derivatives    
The following tables present the location and fair value of the Company’s derivative contracts included in the condensed consolidated balance sheets as of March 31, 2023 and December 31, 2022:
March 31, 2023
Balance Sheet ClassificationGross Fair ValueAmounts NettedNet Fair Value
(In thousands)
Current derivative assets$8,709 $(7,072)$1,637 
Non-current derivative assets11,151 (10,212)939 
Current derivative liabilities(15,091)7,072 (8,019)
Non-current derivative liabilities(10,390)10,212 (178)
Total$(5,621)$— $(5,621)
December 31, 2022
Balance Sheet ClassificationGross Fair ValueAmounts NettedNet Fair Value
(In thousands)
Current derivative assets$64 $(44)$20 
Non-current derivative assets9 (9)— 
Current derivative liabilities(16,516)44 (16,472)
Non-current derivative liabilities(21)9 (12)
Total$(16,464)$— $(16,464)
The following table presents the components of the Company's gain (loss) on derivatives for the periods presented below:
Three Months Ended March 31,
20232022
(In thousands)
Settlements on derivative contracts$(5,088)$(18,375)
Non-cash gain (loss) on derivatives10,843 (31,257)
Gain (loss) on derivatives$5,755 $(49,632)