Derivative Instruments

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

Derivative Instruments

As of March 31, 2024, the Company had the following outstanding financial commodity derivatives:

	2024						2025
Natural Gas	Second Quarter		Third Quarter		Fourth Quarter		First Quarter		Second Quarter		Third Quarter		Fourth Quarter
NYMEX collars
Volume (MMBtu)	44,590,000		45,080,000		16,690,000		9,000,000		9,100,000		9,200,000		9,200,000
Weighted average floor ($/MMBtu)	$	2.70	$	2.75	$	2.75	$	3.25	$	3.25	$	3.25	$	3.25
Weighted average ceiling ($/MMBtu)	$	3.87	$	3.94	$	4.23	$	4.79	$	4.79	$	4.79	$	4.79

	2024
Oil	Second Quarter		Third Quarter		Fourth Quarter
WTI oil collars
Volume (MBbl)	3,185		2,760		2,760
Weighted average floor ($/Bbl)	$	67.57	$	65.00	$	65.00
Weighted average ceiling ($/Bbl)	$	90.47	$	87.17	$	87.17
WTI Midland oil basis swaps
Volume (MBbl)	3,185		2,760		2,760
Weighted average differential ($/Bbl)	$	1.15	$	1.14	$	1.14

In April 2024, the Company entered into the following financial commodity derivatives:

	2024				2025
Oil	Third Quarter		Fourth Quarter		First Quarter		Second Quarter
WTI oil collars
Volume (MBbl)	460		460		900		910
Weighted average floor ($/Bbl)	$	65.00	$	65.00	$	65.00	$	65.00
Weighted average ceiling ($/Bbl)	$	86.02	$	86.02	$	84.21	$	84.21

Effect of Derivative Instruments on the Condensed Consolidated Balance Sheet

		Fair Values of Derivative Instruments
		Derivative Assets				Derivative Liabilities
(In millions)	Balance Sheet Location	March 31, 2024		December 31, 2023		March 31, 2024		December 31, 2023
Commodity contracts	Derivative instruments (current)	$	62	$	85	$	—	$	—
Commodity contracts	Accrued liabilities (current)	—		—		2		—
Commodity contracts	Other assets (non-current)	6		7		—		—
		$	68	$	92	$	2	$	—

Offsetting of Derivative Assets and Liabilities in the Condensed Consolidated Balance Sheet

(In millions)	March 31, 2024		December 31, 2023
Derivative assets
Gross amounts of recognized assets	$	74	$	93
Gross amounts offset in the condensed consolidated balance sheet	(6)		(1)
Net amounts of assets presented in the condensed consolidated balance sheet	68		92
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet	—		1
Net amount	$	68	$	93
Derivative liabilities
Gross amounts of recognized liabilities	$	8	$	1
Gross amounts offset in the condensed consolidated balance sheet	(6)		(1)
Net amounts of liabilities presented in the condensed consolidated balance sheet	2		—
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet	—		—
Net amount	$	2	$	—

Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations

	Three Months Ended  March 31,
(In millions)	2024		2023
Cash received (paid) on settlement of derivative instruments
Gas contracts	$	27	$	99
Oil contracts	(1)		1
Non-cash gain (loss) on derivative instruments
Gas contracts	7		42
Oil contracts	(33)		(4)
	$	—	$	138