Annual report [Section 13 and 15(d), not S-K Item 405]

FINANCIAL INSTRUMENTS

v3.26.1
FINANCIAL INSTRUMENTS
 12 Months Ended
Dec. 31, 2025
FINANCIAL INSTRUMENTS  
FINANCIAL INSTRUMENTS

NOTE 10 — FINANCIAL INSTRUMENTS

The Company’s financial instruments consist of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued liabilities, derivative instruments and debt. Except for derivative instruments and debt, the carrying amount of the Company’s financial instruments approximates fair value due to the short-term, highly liquid nature of these instruments.

Derivative Instruments

As of December 31, 2025, the Company has no open derivative contracts.

The fair value of the Company’s open contracts as well as closed contracts that had not yet settled is recorded in the Consolidated Balance Sheets as follows (in thousands):

​

​

​

​

​

​

​

​

​

December 31, 

​

​

2025

​

2024

Prepaid expenses and other current assets

​

$

318

​

$

868

Other assets

​

 

—

​

 

4,150

Accrued liabilities

​

 

—

​

 

3,731

​

The Company measures the fair value of its derivative instruments on a recurring basis by applying the income approach, using models with inputs that are classified within Level 2 of the valuation hierarchy. The income approach converts expected future cash flows to a present value amount based on market expectations. The inputs used for the fair value measurement of derivative financial instruments are the exercise price, the expiration date, the settlement date, notional quantities, the implied volatility, the discount curve with spreads and published commodity future prices.

The impact of commodity derivative contracts on the Consolidated Statements of Operations was as follows (in thousands):

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​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

​

  ​ ​ ​

2025

  ​ ​ ​

2024

  ​ ​ ​

2023

Realized (gain) loss (1)

​

$

(16,256)

​

$

(2,879)

​

$

4,087

Unrealized loss (gain)

​

​

2,663

​

​

(710)

​

​

(58,846)

Derivative gain, net

​

$

(13,593)

​

$

(3,589)

​

$

(54,759)

​

(1) Includes $11.9 million related to the monetization of the Company’s natural gas put contracts and costless collar during 2025.

Debt

The following table presents the net values and estimated fair values of the Company’s debt (in thousands):

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​

​

​

​

​

​

​

​

​

​

​

​

​

  ​ ​ ​

December 31, 2025

  ​ ​ ​

December 31, 2024

​

​

Net Value

  ​ ​ ​

Fair Value

  ​ ​ ​

Net Value

  ​ ​ ​

Fair Value

Term Loan

​

$

—

​

$

—

​

$

112,132

​

$

109,727

11.75% Notes

​

​

—

​

 

—

​

 

272,081

​

 

278,765

10.75% Notes

​

​

342,355

​

​

320,208

​

​

—

​

​

—

TVPX Loan

​

​

8,458

​

​

8,613

​

​

9,010

​

​

9,395

Total

​

$

350,813

​

$

328,821

​

$

393,223

​

$

397,887

​

The fair values of the TVPX Loan and the Term Loan were measured using a discounted cash flows model and current market rates. The fair values of the 10.75% Notes and the 11.75% Notes were measured using quoted prices, although the market is inactive. The fair value of debt was classified as Level 2 within the valuation hierarchy.