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DERIVATIVES
 9 Months Ended
Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES DERIVATIVES
We periodically enter into commodity derivative contracts to mitigate a portion of our exposure to potentially adverse market changes in commodity prices for our expected future crude oil and natural gas production and the associated impact on cash flows. Our commodity derivative contracts consist of swaps, collars, basis protection swaps, and puts. As of September 30, 2024, all derivative counterparties were members of the Credit Facility lender group, and all commodity derivative contracts are entered into for other-than-trading purposes. We do not designate our commodity derivative contracts as hedging instruments.
A typical swap arrangement guarantees a fixed price on contracted volumes. If the agreed upon published third-party index price (“index price”) is lower than the fixed contract price at the time of settlement, we receive the difference between the index price and the fixed contract price. If the index price is higher than the fixed contact price at the time of settlement, we pay the difference between the index price and the fixed contract price.
A typical collar arrangement establishes a floor and ceiling price on contracted volumes through the use of a short call and a long put. When the index price is above the ceiling price at the time of settlement, we pay the difference between the index price and the ceiling price. When the index price is below the floor price at the time of settlement, we receive the difference between the index price and floor price. When the index price is between the floor price and ceiling price, no payment or receipt occurs.
Basis protection swaps are arrangements that guarantee a price differential from a specified delivery point. For basis protection swaps, we receive a payment from the counterparty if the price differential is greater than the stated terms of the contract and pay the counterparty if the price differential is less than the stated terms of the contract.
A put arrangement gives us the right to sell the underlying commodity at a strike price over the term of the contract. If the index price is higher than the strike price, no payment or receipt occurs. If the index price is lower than the strike price, we receive the difference between the index price and the strike price.
The following table summarizes the components of the derivative gain (loss), net presented on the accompanying statements of operations for the periods below (in thousands):
 Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Derivative cash settlement gain (loss), net
Crude oil contracts$(11,145)$(32,397)$(41,412)$(38,010)
Natural gas contracts29,340 (625)35,700 (6,897)
Total derivative cash settlement gain (loss), net
18,195 (33,022)(5,712)(44,907)
Change in fair value gain (loss)132,834 (117,639)54,639 (75,667)
Total derivative gain (loss), net
$151,029 $(150,661)$48,927 $(120,574)
As of September 30, 2024, we had entered into the following commodity price derivative contracts:
Contract Period
Q4 2024Q1 2025Q2 2025Q3 2025  Q4 2025 2026
Crude Oil Derivatives (volumes in Bbl/day and prices in $/Bbl)
Swaps
NYMEX WTI Volumes25,99719,00019,00022,000——
Weighted-Average Contract Price$70.77 $72.74 $71.89 $74.34 $— $— 
Collars
NYMEX WTI Volumes23,50428,00032,00028,0006,000—
Weighted-Average Ceiling Price$80.99 $79.87 $77.78 $77.65 $75.53 $— 
Weighted-Average Floor Price$65.66 $70.00 $69.88 $69.31 $55.00 $— 
Puts
NYMEX WTI Volumes5,669—————
Weighted-Average Contract Price$55.00 $— $— $— $— $— 
Natural Gas Derivatives (volumes in MMBtu/day and prices in $/MMBtu)
Swaps
NYMEX HH Volumes131,701110,000110,000110,000110,000—
Weighted-Average Contract Price$2.71 $3.20 $3.20 $3.20 $3.20 $— 
Collars
NYMEX HH Volumes—20,00020,00020,00020,000130,000
Weighted-Average Ceiling Price$— $3.76 $3.76 $3.76 $3.76 $4.02 
Weighted-Average Floor Price$— $3.03 $3.03 $3.03 $3.03 $3.24 
Basis Protection Swaps
WAHA Basis Volumes130,000130,000130,000130,000130,000130,000
Weighted-Average Contract Price$(0.97)$(1.17)$(1.17)$(1.17)$(1.17)$(1.31)
WAHA Index Volumes96,52290,000————
Weighted-Average Contract Price$0.02 $0.07 $— $— $— $— 
Subsequent to September 30, 2024 and as of November 1, 2024, we had entered into the following commodity price derivative contracts:
Contract Period
Q4 2024Q1 2025Q2 2025Q3 2025Q4 20252026
Crude Oil Derivatives (volumes in Bbl/day and prices in $/Bbl)
Swaps
NYMEX WTI Volumes————5,000—
Weighted-Average Contract Price$— $— $— $— $69.68 $— 
Collars
NYMEX WTI Volumes————39,000—
Weighted-Average Ceiling Price$— $— $— $— $75.85 $— 
Weighted-Average Floor Price$— $— $— $— $59.28 $— 
Natural Gas Derivatives (volumes in MMBtu/day and prices in $/MMBtu)
Basis Protection Swaps
WAHA Index Volumes
6,739—————
Weighted-Average Contract Price$(0.03)$— $— $— $— $— 
Derivative Assets and Liabilities Fair Value 
Our commodity price derivatives are measured at fair value and are included in the accompanying balance sheets as derivative assets and liabilities. The following table contains a summary of all our derivative positions reported on the accompanying balance sheets as well as a reconciliation between the gross assets and liabilities and the potential effects of master netting arrangements on the fair value of our commodity derivative contracts as of September 30, 2024, and December 31, 2023 (in thousands):
September 30, 2024December 31, 2023
Derivative Assets: 
Commodity contracts - current$94,312 $35,192 
Commodity contracts - noncurrent4,492 8,233 
Total derivative assets98,804 43,425 
Amounts not offset in the accompanying balance sheets(25,058)(11,859)
Total derivative assets, net$73,746 $31,566 
Derivative Liabilities:  
Commodity contracts - current$(14,168)$(18,096)
Commodity contracts - long-term(10,890)— 
Total derivative liabilities(25,058)(18,096)
Amounts not offset in the accompanying balance sheets25,058 11,859 
Total derivative liabilities, net$— $(6,237)