Company: ACTG
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000934549-25-000054
Chunk: 135

Company: ACACIA RESEARCH CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 135
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 Information about financial instruments that are eligible for offset in the consolidated balance sheets were as follows:September 30, 2025December 31, 2024(In thousands)Commodity derivative assetsGross amount of recognized assets$4,479 $3,220 Gross amount offset on the balance sheet(871)(1,106)Net amount of assets on the balance sheet$3,608 $2,114 Commodity derivative liabilitiesGross amount of recognized liabilities$871 $1,106 Gross amount offset on the balance sheet(871)(1,106)Net amount of liabilities on the balance sheet$— $— Benchmark’s realized derivative gain was $1.2 million and $715,000 for the three months ended September 30, 2025 and 2024, respectively. Benchmark’s realized derivative gain was $2.0 million and $1.6 million for the nine months ended September 30, 2025 and 2024, respectively. Benchmark’s unrealized derivative gain was $706,000 and $7.3 million for the three months ended September 30, 2025 and 2024, respectively. Benchmark’s unrealized derivative gain was $1.5 million and $3.9 million for the nine months ended September 30, 2025 and 2024, 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 

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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 the fair value hierarchy. In connection with our Revolution Transaction, the fair value of the oil and gas properties was determined based upon estimated future discounted cash flow, a Level 3 input, using estimated production which we reasonably expect, and estimated prices adjusted for differentials. Unobservable inputs include estimated future oil and natural gas production, prices, operating and development costs and a discount rate