Derivatives (Tables)

9 Months Ended

Sep. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary Of Derivative Instruments Contracts and Settlements

Derivative Contracts in Place as of September 30, 2024

Calendar Period	Contract total volume	Index	Contract average price
Natural gas costless collars
2024	415,000 Mmbtu	NYMEX Henry Hub	$3.19 floor / $4.84 ceiling
2025	1,440,000 Mmbtu	NYMEX Henry Hub	$3.25 floor / $4.59 ceiling
2026	570,000 Mmbtu	NYMEX Henry Hub	$3.50 floor / $4.82 ceiling
Natural gas fixed price swaps
2024	470,000 Mmbtu	NYMEX Henry Hub	$3.55
2025	2,150,000 Mmbtu	NYMEX Henry Hub	$3.26
2026	150,000 Mmbtu	NYMEX Henry Hub	$3.10
Oil costless collars
2024	5,300 Bbls	NYMEX WTI	$66.04 floor / $76.79 ceiling
Oil fixed price swaps
2024	17,200 Bbls	NYMEX WTI	$68.84
2025	57,800 Bbls	NYMEX WTI	$69.44
2026	12,000 Bbls	NYMEX WTI	$69.53

Derivative Settlements during the Three Months Ended September 30, 2024

	Monthly			Settlement
Contract period (1)	Production volume	Index	Contract price	(paid) received
Natural gas costless collars
July - September 2024	30,000 Mmbtu	NYMEX Henry Hub	$3.00 floor / $3.60 ceiling	$	76,050
Natural gas fixed price swaps
July - September 2024	75,000 Mmbtu	NYMEX Henry Hub	$3.47	$	295,875
July - September 2024	25,000 Mmbtu	NYMEX Henry Hub	$3.47	$	98,625
July - September 2024	50,000 Mmbtu	NYMEX Henry Hub	$3.17	$	152,250
July 2024	127,500 Mmbtu	NYMEX Henry Hub	$3.24	$	78,030
August - September 2024	120,000 Mmbtu	NYMEX Henry Hub	$3.24	$	317,160
Oil costless collars
June - August 2024	500 Bbls	NYMEX WTI	$70.00 floor / $78.10 ceiling	$	(1,490	)
June 2024	1,650 Bbls	NYMEX WTI	$63.00 floor / $76.00 ceiling	$	(4,450	)
June 2024	500 Bbls	NYMEX WTI	$65.00 floor / $76.50 ceiling	$	(1,099	)
July - August 2024	1,650 Bbls	NYMEX WTI	$65.00 floor / $76.50 ceiling	$	(6,569	)
Oil fixed price swaps
June 2024	1,300 Bbls	NYMEX WTI	$70.59	$	(10,540	)
June - August 2024	1,000 Bbls	NYMEX WTI	$66.10	$	(36,313	)
July - August 2024	1,500 Bbls	NYMEX WTI	$69.50	$	(25,373	)
			Total (paid) received	$	932,156

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

Subsequent to September 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 costless collars
November 2025 - March 2026	50,000 Mmbtu	NYMEX Henry Hub	$3.50 floor / $3.87 ceiling
April 2026 - June 2026	75,000 Mmbtu	NYMEX Henry Hub	$3.00 floor / $3.60 ceiling
July 2026 - September 2026	100,000 Mmbtu	NYMEX Henry Hub	$3.00 floor / $3.60 ceiling
Oil fixed price swaps
April 2026 - June 2026	1,000 Bbls	NYMEX WTI	$65.80

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						Nine Months Ended
	September 30,						September 30,
	2024			2023			2024			2023
Cash received (paid) on derivative contracts:
Natural gas costless collars	$	76,050		$	240,655		$	1,726,215		$	1,431,565
Natural gas fixed price swaps(1)		941,940			364,310			2,242,912			1,023,900
Oil costless collars		(13,608	)		11,815			(52,843	)		24,330
Oil fixed price swaps(1)		(72,226	)		(13,835	)		(130,213	)		(197,488	)
Cash received (paid) on derivative contracts, net	$	932,156		$	602,945		$	3,786,071		$	2,282,307
Non-cash gain (loss) on derivative contracts:
Natural gas costless collars	$	125,098		$	(146,476	)	$	(1,267,275	)	$	(51,630	)
Natural gas fixed price swaps		(655,239	)		76,754			(1,507,551	)		1,729,053
Oil costless collars		53,427			(225,028	)		18,763			(173,634	)
Oil fixed price swaps		633,800			(645,842	)		267,729			(137,917	)
Non-cash gain (loss) on derivative contracts, net	$	157,086		$	(940,592	)	$	(2,488,334	)	$	1,365,872
Gains (losses) on derivative contracts, net	$	1,089,242		$	(337,647	)	$	1,297,737		$	3,648,179

(1) For the nine months ended September 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 nine months ended September 30, 2023 and is reflected in the Financing Activities section of the Condensed Statements of Cash Flows.

Summary Of Derivative Contracts

	September 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	$	1,207,702		$	446,175		$	512,160		$	478,434		$	3,318,046		$	197,439		$	344,614		$	181,634
Offsetting adjustments		(446,175	)		(446,175	)		(478,434	)		(478,434	)		(197,439	)		(197,439	)		(181,634	)		(181,634	)
Net presentation on condensed balance sheets	$	761,527		$	-		$	33,726		$	-		$	3,120,607		$	-		$	162,980		$	-

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