DERIVATIVE FINANCIAL INSTRUMENTS

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS

DERIVATIVE FINANCIAL INSTRUMENTS

At March 31, 2024, the Company had natural gas basis differential swap contracts open and in place to mitigate its exposure to natural gas price volatility, with a specific term (calculation period), notional quantity (volume hedged) and fixed price. The Company had no open contracts associated with oil or natural gas liquids prices at March 31, 2024.

The following is a summary of the Company’s open basis differential swap contracts at March 31, 2024.

Commodity	Calculation Period	Notional Quantity (MMBtu)	Fixed Price ($/MMBtu)		Fair Value of Asset (Liability) (thousands)
Natural Gas Basis Differential	4/01/2024 - 12/31/2025	19,200,000	$	(0.59)	$	4,745
Total open basis differential swap contracts					$	4,745

The Company’s derivative financial instruments are subject to master netting arrangements, and the Company’s counterparties allow for cross-commodity master netting provided the settlement dates for the commodities are the same. The Company does not present different types of commodities with the same counterparty on a net basis in its interim unaudited condensed consolidated balance sheets.

The following table presents the gross asset and liability fair values of the Company’s commodity price derivative financial instruments and the location of these balances in the interim unaudited condensed consolidated balance sheets as of March 31, 2024 and December 31, 2023 (in thousands).

Derivative Instruments	Gross amounts recognized		Gross amounts netted in the condensed consolidated balance sheets		Net amounts presented in the condensed consolidated balance sheets
March 31, 2024
Current assets	$	3,739	$	(712)	$	3,027
Other assets	$	1,798	(80)		1,718
Total	$	5,537	$	(792)	$	4,745
December 31, 2023
Current assets	$	2,573	$	(461)	$	2,112
Other assets	1,743		(1,185)		558
Total	$	4,316	$	(1,646)	$	2,670

The following table summarizes the location and aggregate gain (loss) of all derivative financial instruments recorded in the interim unaudited condensed consolidated statements of income for the periods presented (in thousands).

		Three Months Ended March 31,
Type of Instrument	Location in Condensed Consolidated  Statement of Income	2024		2023
Derivative Instrument
Natural Gas	Revenues: Realized gain on derivatives	$	275	$	3,669
Realized gain on derivatives		$	275	$	3,669
Natural Gas	Revenues: Unrealized gain (loss) on derivatives	2,075		(7,067)
Unrealized gain (loss) on derivatives		2,075		(7,067)
Total		$	2,350	$	(3,398)