Derivatives (Tables)

9 Months Ended

Sep. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments, Gain (Loss)

The following table summarizes derivative activity for the three and nine-month periods ended September 30, 2022 and 2021 (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
(Gain) loss on derivative contracts	$	(4,258)	$	4,129	$	(3,194)	$	4,129
Realized settlement gains (losses) on derivative contracts	$	218	$	—	$	(867)	$	—

Offsetting Assets

The following table summarizes (i) the Company's commodity derivative contracts on a gross basis, (ii) the effects of netting assets and liabilities for which the right of offset exists based on master netting arrangements and (iii) the Company’s net derivative asset and liability positions as of September 30, 2022 and December 31, 2021 (in thousands):

September 30, 2022

	Gross Amounts		Gross Amounts Offset		Amounts Net of Offset		Financial Collateral		Net Amount
Assets
Derivative contracts - current	$	4,040	$	—	$	4,040	$	—	$	4,040
Total	$	4,040	$	—	$	4,040	$	—	$	4,040

December 31, 2021

	Gross Amounts		Gross Amounts Offset		Amounts Net of Offset		Financial Collateral		Net Amount
Liabilities
Derivative contracts - current	$	200	$	179	$	21	$	—	$	21
Total	$	200	$	179	$	21	$	—	$	21

Schedule of Derivative Instruments

These commodity derivative contracts consisted of the following:

	Notional	Units	Weighted Average Fixed Price per Unit
Natural Gas Price Swaps: October 2022 - March 2023	2,088,000	MMBtu	$	8.39

Fair Value of Derivatives

As of September 30, 2022 and December 31, 2021 the following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis by the fair value hierarchy (in thousands):

September 30, 2022

	Fair Value Measurements						Netting (1)		Assets at Fair Value
	Level 1		Level 2		Level 3
Assets
Commodity derivative contracts	$	—	$	4,040	$	—	$	—	$	4,040
Total	$	—	$	4,040	$	—	$	—	$	4,040

December 31, 2021

	Fair Value Measurements						Netting (1)		Liabilities at Fair Value
	Level 1		Level 2		Level 3
Liabilities
Commodity derivative contracts	$	—	$	200	$	—	$	179	$	21
Total	$	—	$	200	$	—	$	179	$	21

____________________

(1)    Represents the effect of netting assets and liabilities for counterparties with which the right of offset exists.

The following table presents the fair value of the Company’s derivative contracts on a net basis with the same counterparty (in thousands):

Type of Contract	Balance Sheet Classification	September 30, 2022
Derivative assets
Natural Gas	Current assets - Derivative Contracts	$	4,040
Total net derivative contracts		$	4,040

Type of Contract	Balance Sheet Classification	December 31, 2021
Natural Gas and NGL price swaps	Current liabilities - Derivative Contracts	$	21
Total net derivative contracts		$	21