Derivative Instruments and Hedging Activities (Tables)
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6 Months Ended |
Jun. 30, 2023 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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Schedule of Offsetting Assets |
The following presents the impact of this presentation to the Company’s recognized assets and liabilities for the periods indicated:
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As of June 30, 2023 |
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Presented without |
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As Presented with |
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Effects of Netting |
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Effects of Netting |
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Effects of Netting |
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(In thousands) |
Derivative Assets |
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Fair value of derivatives - current |
$20,387 |
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($5,427) |
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$14,960 |
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Other assets, net |
$— |
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$— |
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$— |
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Derivative Liabilities |
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Fair value of derivatives - current |
($6,933) |
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$5,427 |
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($1,506) |
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Fair value of derivatives - non-current |
($1,941) |
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$— |
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($1,941) |
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As of December 31, 2022 |
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Presented without |
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As Presented with |
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Effects of Netting |
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Effects of Netting |
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Effects of Netting |
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(In thousands) |
Derivative Assets |
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Fair value of derivatives - current |
$51,984 |
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($30,652) |
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$21,332 |
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Other assets, net |
$1,343 |
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($889) |
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$454 |
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Derivative Liabilities |
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Fair value of derivatives - current |
($46,849) |
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$30,652 |
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($16,197) |
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Fair value of derivatives - non-current |
($14,304) |
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$889 |
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($13,415) |
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Schedule of Offsetting Liabilities |
The following presents the impact of this presentation to the Company’s recognized assets and liabilities for the periods indicated:
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As of June 30, 2023 |
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Presented without |
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As Presented with |
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Effects of Netting |
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Effects of Netting |
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Effects of Netting |
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(In thousands) |
Derivative Assets |
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Fair value of derivatives - current |
$20,387 |
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($5,427) |
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$14,960 |
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Other assets, net |
$— |
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$— |
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$— |
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Derivative Liabilities |
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Fair value of derivatives - current |
($6,933) |
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$5,427 |
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($1,506) |
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Fair value of derivatives - non-current |
($1,941) |
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$— |
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($1,941) |
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As of December 31, 2022 |
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Presented without |
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As Presented with |
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Effects of Netting |
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Effects of Netting |
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Effects of Netting |
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(In thousands) |
Derivative Assets |
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Fair value of derivatives - current |
$51,984 |
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($30,652) |
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$21,332 |
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Other assets, net |
$1,343 |
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($889) |
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$454 |
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Derivative Liabilities |
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Fair value of derivatives - current |
($46,849) |
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$30,652 |
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($16,197) |
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Fair value of derivatives - non-current |
($14,304) |
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$889 |
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($13,415) |
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Schedule of Gain or Loss on Derivative Contracts |
The components of “(Gain) loss on derivative contracts” are as follows for the respective periods:
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2023 |
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2022 |
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2023 |
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2022 |
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(In thousands) |
(Gain) loss on oil derivatives |
($12,937) |
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$75,910 |
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($36,281) |
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$401,258 |
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Loss on natural gas derivatives |
6,996 |
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5,738 |
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4,695 |
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33,919 |
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Loss on NGL derivatives |
— |
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— |
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— |
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4,771 |
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(Gain) loss on derivative contracts |
($5,941) |
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$81,648
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($31,586) |
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$439,948
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Schedule of Derivative Instruments |
The components of “Cash received (paid) for commodity derivative settlements, net” and “Cash received (paid) for settlements of contingent consideration arrangements, net” are as follows for the respective periods:
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2023 |
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2022 |
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2023 |
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2022 |
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(In thousands) |
Cash flows from operating activities |
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Cash received (paid) on oil derivatives |
$1,268 |
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($162,334) |
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($6,130) |
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($257,687) |
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Cash received (paid) on natural gas derivatives |
11,757 |
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(21,808) |
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18,376 |
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(26,452) |
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Cash paid on NGL derivatives |
— |
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(2,255) |
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— |
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(3,783) |
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Cash received (paid) for commodity derivative settlements, net |
$13,025 |
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($186,397) |
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$12,246 |
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($287,922) |
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Cash received for settlements of contingent consideration arrangements, net (1)
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$— |
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$— |
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$— |
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$6,492 |
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Cash flows from investing activities |
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Cash paid for settlement of contingent consideration arrangement (1)
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$— |
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$— |
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$— |
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($19,171) |
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Cash flows from financing activities |
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Cash received for settlement of contingent consideration arrangement (1)
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$— |
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$— |
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$— |
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$8,512 |
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(1) See “Note 8 — Derivative Instruments and Hedging Activities” of the Notes to Consolidated Financial Statements in our 2022 Annual Report for discussion of the Company’s contingent consideration arrangements.
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Schedule of Outstanding Oil and Natural Gas Derivative Contracts |
Listed in the tables below are the outstanding oil and natural gas derivative contracts as of June 30, 2023:
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For the Remainder |
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For the Full Year |
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Oil Contracts (WTI) |
2023 |
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2024 |
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Swap Contracts |
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Total volume (Bbls) |
460,000 |
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— |
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Weighted average price per Bbl |
$82.10 |
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$— |
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Collar Contracts |
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Total volume (Bbls) |
920,000 |
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— |
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Weighted average price per Bbl |
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Ceiling (short call) |
$90.00 |
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$— |
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Floor (long put) |
$70.00 |
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$— |
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Put Contracts |
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Total volume (Bbls) |
736,000 |
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— |
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Weighted average price per Bbl |
$70.00 |
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$— |
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For the Remainder |
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For the Full Year |
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Natural Gas Contracts (Henry Hub) |
2023 |
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2024 |
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Swap Contracts |
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Total volume (MMBtu) |
2,460,000 |
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— |
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Weighted average price per MMBtu |
$3.00 |
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$— |
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Collar Contracts |
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Total volume (MMBtu) |
3,217,643 |
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1,820,000 |
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Weighted average price per MMBtu |
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Ceiling (short call) |
$5.58 |
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$6.00 |
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Floor (long put) |
$3.43 |
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$3.00 |
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Natural Gas Contracts (Waha Basis Differential) |
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Swap Contracts |
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Total volume (MMBtu) |
4,300,000 |
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3,660,000 |
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Weighted average price per MMBtu |
($1.09) |
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($1.05) |
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Natural Gas Contracts (HSC Basis Differential) |
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Swap Contracts |
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Total volume (MMBtu) |
5,520,000 |
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14,640,000 |
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Weighted average price per MMBtu |
($0.29) |
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($0.42) |
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As part of the Percussion Acquisition, the Company assumed all of Percussion Target’s oil, natural gas, and NGL hedge contracts, which are presented in the following tables:
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For the Remainder |
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For the Full Year |
Oil Contracts (WTI) |
2023 |
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2024 |
Collar Contracts (Three-Way Collars) |
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Total volume (Bbls) |
1,034,556 |
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3,963,023 |
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Weighted average price per Bbl |
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Ceiling (short call) |
$70.20 |
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$78.86 |
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Floor (long put) |
$55.00 |
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$58.16 |
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Floor (short put) |
$45.00 |
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$48.16 |
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Collar Contracts (Two-Way Collars) |
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Total volume (Bbls) |
309,054 |
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— |
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Weighted average price per Bbl |
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Ceiling (short call) |
$72.40 |
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$— |
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Floor (long put) |
$60.00 |
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$— |
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CMA Roll Swap Contracts |
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Total volume (Bbls) |
1,512,363 |
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— |
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Weighted average price per Bbl |
$0.30 |
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$— |
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For the Remainder |
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For the Full Year |
Natural Gas Contracts (Henry Hub) |
2023 |
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2024 |
Collar Contracts |
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Total volume (MMBtu) |
555,755 |
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6,778,555 |
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Weighted average price per MMBtu |
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Ceiling (short call) |
$3.69 |
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$3.33 |
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Floor (long put) |
$2.86 |
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$3.00 |
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Natural Gas Contracts (Waha Basis Differential) |
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Swap Contracts |
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Total volume (MMBtu) |
1,840,000 |
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3,660,000 |
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Weighted average price per MMBtu |
($1.94) |
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($1.07) |
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For the Remainder |
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For the Full Year |
NGL Contracts (Mont Belvieu Natural Gasoline) |
2023 |
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2024 |
Swap Contracts |
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Total volume (Bbls) |
83,510 |
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— |
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Weighted average price per Bbl |
$56.31 |
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$— |
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NGL Contracts (Mont Belvieu Propane) |
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Swap Contracts |
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Total volume (Bbls) |
71,831 |
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— |
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Weighted average price per Bbl |
$31.37 |
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$— |
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NGL Contracts (Mont Belvieu Purity Ethane) |
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Swap Contracts |
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Total volume (Bbls) |
70,428 |
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— |
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Weighted average price per Bbl |
$9.66 |
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$— |
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NGL Contracts (Mont Belvieu Normal Butane) |
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Swap Contracts |
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Total volume (Bbls) |
64,606 |
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72,105 |
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Weighted average price per Bbl |
$35.60 |
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$33.18 |
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NGL Contracts (Mont Belvieu Isobutane) |
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Swap Contracts |
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Total volume (Bbls) |
21,141 |
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23,462 |
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Weighted average price per Bbl |
$35.47 |
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$33.18 |
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