Operating Revenues

Q1 2025: $390M, ~16% decline from Q4 2024: $467M

The decline in operating revenues is driven by adverse fair-value adjustments in derivative positions that eroded gross revenue figures despite underlying energy sales, demonstrating the negative impact of unfavorable market pricing on the company’s hedging activities. "

Energy and other revenues

Q1 2025: $582M, ~33% increase from Q4 2024: $437M

The 33% increase reflects stronger performance in energy sales and ancillary services, with improved revenue streams; however, this gain was partly nullified by worsening derivative losses, indicating that while core business improved, market conditions adversely affected hedging outcomes. "

Unrealized loss on derivatives

Q1 2025: -$241M vs Q4 2024: -$21M

The drastic deepening of the unrealized loss—from -$21M to -$241M—suggests that increases in commodity price volatility and unfavorable changes in the fair value of derivative contracts had a significant negative impact on overall revenue, reflecting heightened market risks and aggressive hedging exposures. "

Operating Income

Q1 2025: -$106M vs Q4 2024: $16M

The shift from a modest profit of $16M to a loss of $106M is mainly due to the worsening derivative losses that overwhelmed improvements in other revenue streams, illustrating the compounded impact of adverse derivative valuations on the company’s core operating performance. "

Net Income & Basic EPS

Q1 2025: Net Loss of -$135M; EPS from $1.96 to -$2.94

The swing in net income from a $68M profit to a $135M loss, with EPS plummeting from $1.96 to -$2.94, arises from the combination of declining operating revenues and escalating derivative losses, severely impacting overall profitability and shareholder returns. "

Cash and Cash Equivalents

Q1 2025: $295M vs Q4 2024: $328M (~10% decline)

The 10% reduction in cash and cash equivalents is likely attributable to increased cash outflows for derivative settlements and operational needs, underscoring tighter liquidity due to the challenging market environment and negative operational cash flows. " "

Total Stockholders’ Equity

Q1 2025: $1,180M vs Q4 2024: $1,387M (~15% decline)

The 15% drop in total equity can be traced to cumulative operational losses, share repurchases, and reduced retained earnings, reflecting the overall detrimental effects of rising derivative losses on capital and shareholder equity. " "