Derivatives (Tables)

6 Months Ended

Jun. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary Of Derivative Instruments Contracts and Settlements

Derivative Contracts in Place as of June 30, 2024

Calendar Period	Contract total volume	Index	Contract average price
Natural gas costless collars
2024	430,000 Mmbtu	NYMEX Henry Hub	$3.19 floor / $4.84 ceiling
2025	1,365,000 Mmbtu	NYMEX Henry Hub	$3.26 floor / $4.66 ceiling
2026	570,000 Mmbtu	NYMEX Henry Hub	$3.50 floor / $4.82 ceiling
Natural gas fixed price swaps
2024	1,262,500 Mmbtu	NYMEX Henry Hub	$3.41
2025	1,030,000 Mmbtu	NYMEX Henry Hub	$3.47
Oil costless collars
2024	12,250 Bbls	NYMEX WTI	$65.79 floor / $76.76 ceiling
Oil fixed price swaps
2024	21,500 Bbls	NYMEX WTI	$68.66
2025	40,800 Bbls	NYMEX WTI	$69.58
2026	4,500 Bbls	NYMEX WTI	$70.74

Derivative Settlements during the Three Months Ended June 30, 2024

	Monthly			Settlement
Contract period (1)	Production volume	Index	Contract price	(paid) received
Natural gas costless collars
April - June 2024	30,000 Mmbtu	NYMEX Henry Hub	$3.00 floor / $3.60 ceiling	$	99,540
April 2024	90,000 Mmbtu	NYMEX Henry Hub	$3.50 floor / $4.70 ceiling	$	173,250
May 2024	95,000 Mmbtu	NYMEX Henry Hub	$3.50 floor / $4.70 ceiling	$	179,170
June 2024	90,000 Mmbtu	NYMEX Henry Hub	$3.50 floor / $4.70 ceiling	$	90,630
Natural gas fixed price swaps
April - June 2024	10,000 Mmbtu	NYMEX Henry Hub	$3.21	$	39,480
April - June 2024	50,000 Mmbtu	NYMEX Henry Hub	$3.17	$	191,400
April - June 2024	127,500 Mmbtu	NYMEX Henry Hub	$3.24	$	514,845
Oil costless collars
March 2024	1,650 Bbls	NYMEX WTI	$65.00 floor / $76.50 ceiling	$	(6,443	)
April - May 2024	500 Bbls	NYMEX WTI	$65.00 floor / $76.50 ceiling	$	(5,008	)
March 2024	1,750 Bbls	NYMEX WTI	$63.00 floor / $76.00 ceiling	$	(7,708	)
April 2024	1,700 Bbls	NYMEX WTI	$63.00 floor / $76.00 ceiling	$	(14,270	)
May 2024	1,750 Bbls	NYMEX WTI	$63.00 floor / $76.00 ceiling	$	(4,587	)
Oil fixed price swaps
March 2024	750 Bbls	NYMEX WTI	$71.75	$	(6,491	)
April - May 2024	1,000 Bbls	NYMEX WTI	$66.10	$	(30,815	)
April - May 2024	1,300 Bbls	NYMEX WTI	$70.59	$	(28,386	)
			Total (paid) received	$	1,184,607

(1) Natural gas derivatives settle at first of the month pricing and oil derivatives settle at a monthly daily average.

Subsequent to June 30, 2024, the Company entered into new derivative contracts as summarized in the table below:

	Production volume
Contract period	covered per month	Index	Contract price
Natural gas fixed price swaps
November 2024	25,000 Mmbtu	NYMEX Henry Hub	$2.80
April 2025 - May 2025	25,000 Mmbtu	NYMEX Henry Hub	$3.23
April 2025 - August 2025	125,000 Mmbtu	NYMEX Henry Hub	$3.01
June 2025	10,000 Mmbtu	NYMEX Henry Hub	$3.23
July 2025	45,000 Mmbtu	NYMEX Henry Hub	$3.23
August 2025	40,000 Mmbtu	NYMEX Henry Hub	$3.23
September 2025	50,000 Mmbtu	NYMEX Henry Hub	$3.23
September 2025 - October 2025	100,000 Mmbtu	NYMEX Henry Hub	$3.01
October 2025	100,000 Mmbtu	NYMEX Henry Hub	$3.23
Oil fixed price swaps
July 2025 - August 2025	1,250 Bbls	NYMEX WTI	$70.81

Summary of Gain or Loss on Derivative Contracts, Net

Cash receipts or payments in the following table reflect the gain or loss on derivative contracts which settled during the respective periods, and the non-cash gain or loss reflect the change in fair value of derivative contracts as of the end of the respective periods.

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2024			2023			2024			2023
Cash received (paid) on derivative contracts:
Natural gas costless collars	$	542,590		$	475,320		$	1,650,165		$	1,190,910
Natural gas fixed price swaps(1)		745,725			576,490			1,300,973			659,590
Oil costless collars		(38,016	)		12,515			(39,235	)		12,515
Oil fixed price swaps(1)		(65,692	)		(15,384	)		(57,987	)		(183,653	)
Cash received (paid) on derivative contracts, net	$	1,184,607		$	1,048,941		$	2,853,916		$	1,679,362
Non-cash gain (loss) on derivative contracts:
Natural gas costless collars	$	(633,105	)	$	(488,755	)	$	(1,392,373	)	$	94,846
Natural gas fixed price swaps		(1,050,328	)		(521,078	)		(852,312	)		1,652,299
Oil costless collars		60,234			29,131			(34,664	)		51,394
Oil fixed price swaps		19,595			114,767			(366,072	)		507,925
Non-cash gain (loss) on derivative contracts, net	$	(1,603,604	)	$	(865,935	)	$	(2,645,421	)	$	2,306,464
Gains (losses) on derivative contracts, net	$	(418,997	)	$	183,006		$	208,495		$	3,985,826

(1) For the six months ended June 30, 2023, excludes $373,745 of cash paid to settle off-market derivative contracts that are not reflected on the Condensed Statements of Income. Total cash paid related to off-market derivatives was $560,162 for the six months ended June 30, 2023 and is reflected in the Financing Activities section of the Condensed Statements of Cash Flows.

Summary Of Derivative Contracts

	June 30, 2024												December 31, 2023
	Fair Value (a)												Fair Value (a)
	Commodity Contracts												Commodity Contracts
	Current Assets			Current Liabilities			Non-Current Assets			Non-Current Liabilities			Current Assets			Current Liabilities			Non-Current Assets			Non-Current Liabilities
Gross amounts recognized	$	1,554,997		$	677,459		$	465,630		$	705,002		$	3,318,046		$	197,439		$	344,614		$	181,634
Offsetting adjustments		(677,459	)		(677,459	)		(465,630	)		(465,630	)		(197,439	)		(197,439	)		(181,634	)		(181,634	)
Net presentation on condensed balance sheets	$	877,538		$	-		$	-		$	239,372		$	3,120,607		$	-		$	162,980		$	-

(a) See Note 10: Fair Value Measurements for further disclosures regarding fair value of financial instruments.