General This discussion provides information about the financial instruments we have historically used to manage commodity prices. All contracts were settled in cash and did not require the actual delivery of a commodity at settlement. Additionally, our exposure to credit risk is also discussed. Commodity Price Risk. Our most significant market risk relates to the prices we receive for our oil, natural gas and NGLs. Due to the historical price volatility of these commodities, from time to time we have historically entered into, depending upon our view of opportunities under the then-prevailing current market conditions, commodity derivative contracts for a portion of our anticipated production volumes for the purpose of reducing the impact of the variability of oil and natural gas prices. We have used, and may use, a variety of commodity-based derivative contracts, including fixed price swaps, basis swaps and collars. As of June 30, 2026, the Company's open derivative contracts consisted of oil, natural gas, and NGL commodity derivative contracts as follows: Period Index Daily Volume Weighted Average Price Oil (Bbl) Fixed Price Swaps July 2026 - December 2026 NYMEX WTI 700 $75.18 January 2027 - December 2027 NYMEX WTI 200 $65.00 Producer Costless Collars July 2026 - December 2026 NYMEX WTI 1,255 $62.57 Put / $84.41 Call Natural Gas (MMBtu) Fixed Price Swaps July 2026 - December 2026 NYMEX Henry Hub 15,925 $4.17 Producer Costless Collars July 2026 - December 2026 NYMEX Henry Hub 4,500 $3.35 Put / $5.35 Call NGL (Bbl) Fixed Price Swaps July 2026 - December 2026 Mont Belvieu OPIS 490 $54.34 Because we historically have not designated any of our derivative contracts as hedges for accounting purposes, changes in the fair value of our derivative contracts are recognized as gains and losses in current period earnings. As a result, and when applicable, current period earnings could have been significantly affected by changes in the fair value of our commodity derivative contracts. Changes in fair value were principally measured based on a comparison of future prices to the contract price at the end of the period and through the Black-Scholes or other similar valuation method in the case of options. The following table summarizes derivative activity (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (Gain) loss on derivative contracts $ (4,222) $ (6,059) $ (696) $ (3,572) Settlement gains (losses) on derivative contracts $ (847) $ 1,478 $ (717) $ 1,319 See “Note 3 — Derivatives” to the accompanying unaudited condensed consolidated financial statements included in this Quarterly Report for additional information regarding our commodity derivatives. 29 Table of Contents Credit Risk. As applicable, we are exposed to credit risk related to counterparties to our derivative financial contracts. All of our derivative transactions are carried out in the over-the-counter market. The use of derivative transactions in over-the-counter markets involves the risk that the counterparties may be unable to meet the financial terms of the transactions. The counterparties for all of our current derivative transactions have had and continue to have an “investment grade” credit rating. We monitor the credit ratings of our derivative counterparties and considered our counterparties’ credit default risk ratings in determining the fair value of our derivative contracts. Our derivative contracts have historically been with multiple counterparties to minimize exposure to any individual counterparty, and in addition our counterparties have been large financial institutions. We do not require collateral or other security from counterparties to support derivative instruments. We have master netting agreements with our derivative contract counterparties, which allows us to net our derivative assets and liabilities by commodity type with the same counterparty. As a result of the netting provisions, our maximum amount of loss under derivative transactions due to credit risk is limited to the net amounts due from the counterparties under the commodity derivative contracts. Therefore, we are not required to post additional collateral under our commodity derivative contracts. We are also exposed to credit risk related to the collection of receivables from our joint interest partners for their proportionate share of expenditures on wells and properties we operate. Historically, our credit losses on joint interest receivables have been immaterial. 30 Table of Contents