The Company has two types of derivative instruments as of June 30, 2024: (i) commodity derivatives and (ii) a contingent consideration derivative. See Note 9 for discussion of fair value measurement of derivatives on a recurring basis. The Company's derivatives were not designated as hedges for accounting purposes, and the Company does not enter into such instruments for speculative trading purposes. Accordingly, the changes in derivative fair values are recognized in "Gain (loss) on derivatives, net" under "Non-operating income (expense)" on the consolidated statements of operations.

Due to the inherent volatility in oil, NGL and natural gas prices and the sometimes wide pricing differentials between where the Company produces and where the Company sells such commodities, the Company engages in commodity derivative transactions, such as puts, swaps, collars and basis swaps, to hedge price risk associated with a portion of the Company's anticipated sales volumes. By removing a portion of the price volatility associated with future sales volumes, the Company expects to mitigate, but not eliminate, the potential effects of variability in cash flows from operations. See Note 11 in the 2023 Annual Report for discussion of transaction types and settlement indexes. During the six months ended June 30, 2024, the Company’s derivatives were settled based on reported prices on commodity exchanges, with (i) oil derivatives settled based on WTI NYMEX, Argus WTI Midland and Argus WTI Formula Basis pricing, (ii) NGL derivatives settled based on Mont Belvieu OPIS pricing and (iii) natural gas derivatives settled based on Henry Hub NYMEX and Waha Inside FERC pricing.


	Remaining Year 2024		Year 2025		Year 2026
Oil:





WTI NYMEX - Swaps:
Volume (Bbl)	10,279,500		11,362,000		—
Weighted-average price ($/Bbl)	$	76.88	$	75.13	$	—




WTI NYMEX - Three-way Collars:
Volume (Bbl)	100,400		—		—
Weighted-average sold put price ($/Bbl)	$	50.00	$	—	$	—
Weighted-average floor price ($/Bbl)	$	66.46	$	—	$	—
Weighted-average ceiling price ($/Bbl)	$	87.06	$	—	$	—
Argus WTI Midland to Argus WTI Formula Basis - Basis Swaps:
Volume (Bbl)	135,900		—		—
Weighted-average differential ($/Bbl)	$	0.11	$	—	$	—






















NGL:




Non-TET Propane - Swaps:
Volume (Bbl)	124,000		—		—
Weighted-average price ($/Bbl)	$	34.23	$	—	$	—
Non-TET Normal Butane - Swaps:
Volume (Bbl)	27,457		—		—
Weighted-average price ($/Bbl)	$	39.78	$	—	$	—
Non-TET Isobutane - Swaps:
Volume (Bbl)	88,571		—		—
Weighted-average price ($/Bbl)	$	42.26	$	—	$	—
Non-TET Pentane - Swaps:
Volume (Bbl)	85,619		—		—
Weighted-average price ($/Bbl)	$	65.15	$	—	$	—



Natural gas:



Henry Hub NYMEX - Swaps:
Volume (MMBtu)	13,120,850		—		—
Weighted-average price ($/MMBtu)	$	3.47	$	—	$	—
Waha Inside FERC - Swaps:
Volume (MMBtu)	—		15,330,000		15,330,000
Weighted-average price ($/MMBtu)	$	—	$	2.61	$	2.76
Henry Hub NYMEX - Collars:
Volume (MMBtu)	318,831		—		—
Weighted-average floor price ($/MMBtu)	$	3.42	$	—	$	—
Weighted-average ceiling price ($/MMBtu)	$	6.17	$	—	$	—










Waha Inside FERC to Henry Hub NYMEX - Basis Swaps:
Volume (MMBtu)	13,439,681		—		—
Weighted-average differential ($/MMBtu)	$	(0.74)	$	—	$	—

On May 7, 2021, the Company entered into a purchase and sale agreement (the "Sixth Street PSA"), to sell 37.5% of the Company's working interest in certain producing wellbores and the related properties primarily located within Glasscock and Reagan Counties, Texas. The Sixth Street PSA provides for potential contingent payments to be paid to the Company if certain

cash flow targets are met related to divested oil and natural gas property operations (the "Sixth Street Contingent Consideration"). The Sixth Street Contingent Consideration provides the Company with the right to receive up to a maximum of $93.7 million in additional cash consideration, comprised of potential quarterly payments through June 2027 totaling up to $38.7 million and a potential balloon payment of $55.0 million in June 2027. As of June 30, 2024, the Company had received life-to-date contingent consideration payments of $4.3 million, with maximum remaining potential cash consideration totaling $81.7 million. The fair value of the Sixth Street Contingent Consideration was $33.0 million as of June 30, 2024 and $31.1 million as of December 31, 2023.