Company: ACTG
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000934549-25-000021
Chunk: 62

Company: ACACIA RESEARCH CORP
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 62
---
 as follows:Level 1Level 2Level 3Total(In thousands)AssetsMarch 31, 2025:Assets:Equity securities$18,064 $— $— $18,064 Liabilities:Commodity derivative instruments$— $(2,865)$— $(2,865)December 31, 2024:Assets:Equity securities$23,135 $— $— $23,135 Commodity derivative instruments$— $2,114 $— $2,114 Information about financial instruments that are eligible for offset in the condensed consolidated balance sheets as of March 31, 2025 and December 31, 2024 were as follows:March 31, 2025December 31, 2024(In thousands)Commodity derivative contractsGross amounts of recognized assets$2,787 $3,220 Gross amounts offset on the balance sheet(2,787)(1,106)Net amount of assets on the balance sheet$— $2,114 Commodity derivative liabilitiesGross amounts of recognized liabilities$5,652 $1,106 Gross amount offset on the balance sheet(2,787)(1,106)Net amounts of liabilities on the balance sheet$2,865 $— 

30

Benchmark’s realized derivative loss for the three months ended March 31, 2025 was $43,000 and realized derivative gain was $800,000 for the three months ended March 31, 2024. Benchmark’s unrealized derivative loss for the three months ended March 31, 2025 and 2024 was $5.0 million and $629,000, respectively. In accordance with U.S. GAAP, from time to time, the Company measures certain assets and liabilities at fair value on a nonrecurring basis. Assets and liabilities accounted for on a non-recurring basis include asset retirement obligations incurred by the drilling of new oil and natural gas wells, the change in estimated asset retirement obligations, and the carrying value of proved and unproved oil and natural gas properties following impairment. The fair value of the asset retirement obligations is measured using valuation techniques consistent with the income approach, which converts future cash flows to a single discounted amount and significant inputs include the estimated plug and abandonment cost per well, the estimated life per well and the credit-adjusted risk-free rate. The fair value of the asset retirement obligations are within Level 3 of