Derivative Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2022

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Notional Volume of Commodity Hedges

At September 30, 2022, the notional volumes of our commodity derivative contracts were:

Commodity	Instrument	Unit	2022		2023		2024		2025		2026		2027
Natural Gas	Swaps	MMBtu/d		213,394		175,687		102,347		19,895		—		—
Natural Gas	Basis Swaps	MMBtu/d		452,989		425,247		280,000		244,267		55,000		10,000
NGL	Swaps	Bbl/d		48,617		43,115		20,350		2,480		—		—
NGL	Futures	Bbl/d		66,630		3,614		—		—		—		—
Condensate	Swaps	Bbl/d		6,547		6,427		3,089		427		—		—

Fair Values of Derivative Instruments

The following schedules reflect the fair value of our derivative instruments and their location on our Consolidated Balance Sheets as well as pro forma reporting assuming that we reported derivatives subject to master netting agreements on a net basis:

		Fair Value as of September 30, 2022					Fair Value as of December 31, 2021
	Balance Sheet	Derivative		Derivative			Derivative		Derivative
	Location	Assets		Liabilities			Assets		Liabilities
Derivatives designated as hedging instruments
Commodity contracts	Current	$	174.8	$	(171.0	)	$	25.5	$	(252.6	)
	Long-term		47.4		(74.8	)		6.2		(84.3	)
Total derivatives designated as hedging instruments		$	222.2	$	(245.8	)	$	31.7	$	(336.9	)
Derivatives not designated as hedging instruments
Commodity contracts	Current	$	11.0	$	(230.0	)	$	17.6	$	(5.6	)
	Long-term		2.8		(90.3	)		1.5		(25.0	)
Total derivatives not designated as hedging instruments		$	13.8	$	(320.3	)	$	19.1	$	(30.6	)
Total current position		$	185.8	$	(401.0	)	$	43.1	$	(258.2	)
Total long-term position			50.2		(165.1	)		7.7		(109.3	)
Total derivatives		$	236.0	$	(566.1	)	$	50.8	$	(367.5	)

Pro Forma Impact of Derivatives Net in Consolidated Balance Sheet

The pro forma impact of reporting derivatives on our Consolidated Balance Sheets on a net basis is as follows:

		Gross Presentation								Pro Forma Net Presentation
September 30, 2022		Asset		Liability			Collateral			Asset		Liability
Current Position
	Counterparties with offsetting positions or collateral	$	171.0	$	(401.0	)	$	(26.7	)	$	13.7	$	(270.4	)
	Counterparties without offsetting positions - assets		14.8		—			—			14.8		—
	Counterparties without offsetting positions - liabilities		—		—			—			—		—
			185.8		(401.0	)		(26.7	)		28.5		(270.4	)
Long Term Position
	Counterparties with offsetting positions or collateral		43.8		(165.1	)		14.0			16.2		(123.5	)
	Counterparties without offsetting positions - assets		6.4		—			—			6.4		—
	Counterparties without offsetting positions - liabilities		—		—			—			—		—
			50.2		(165.1	)		14.0			22.6		(123.5	)
Total Derivatives
	Counterparties with offsetting positions or collateral		214.8		(566.1	)		(12.7	)		29.9		(393.9	)
	Counterparties without offsetting positions - assets		21.2		—			—			21.2		—
	Counterparties without offsetting positions - liabilities		—		—			—			—		—
		$	236.0	$	(566.1	)	$	(12.7	)	$	51.1	$	(393.9	)
		Gross Presentation								Pro Forma Net Presentation
December 31, 2021		Asset		Liability			Collateral			Asset		Liability
Current Position
	Counterparties with offsetting positions or collateral	$	39.2	$	(241.9	)	$	5.0		$	0.3	$	(198.0	)
	Counterparties without offsetting positions - assets		3.9		—			—			3.9		—
	Counterparties without offsetting positions - liabilities		—		(16.3	)		—			—		(16.3	)
			43.1		(258.2	)		5.0			4.2		(214.3	)
Long Term Position
	Counterparties with offsetting positions or collateral		7.4		(95.1	)		3.1			—		(84.6	)
	Counterparties without offsetting positions - assets		0.3		—			—			0.3		—
	Counterparties without offsetting positions - liabilities		—		(14.2	)		—			—		(14.2	)
			7.7		(109.3	)		3.1			0.3		(98.8	)
Total Derivatives
	Counterparties with offsetting positions or collateral		46.6		(337.0	)		8.1			0.3		(282.6	)
	Counterparties without offsetting positions - assets		4.2		—			—			4.2		—
	Counterparties without offsetting positions - liabilities		—		(30.5	)		—			—		(30.5	)
		$	50.8	$	(367.5	)	$	8.1		$	4.5	$	(313.1	)

Amounts Recorded in Other Comprehensive Income OCI and Amounts Reclassified from OCI to Revenue

The following tables reflect amounts recorded in Other comprehensive income (“OCI”) and amounts reclassified from OCI to revenue for the periods indicated:

	Gain (Loss) Recognized in OCI on Derivatives (Effective Portion)
Derivatives in Cash Flow	Three Months Ended September 30,					Nine Months Ended September 30,
Hedging Relationships	2022		2021			2022			2021
Commodity contracts	$	225.4	$	(294.7	)	$	(136.7	)	$	(698.9	)

	Gain (Loss) Reclassified from OCI into Income (Effective Portion)
	Three Months Ended September 30,						Nine Months Ended September 30,
Location of Gain (Loss)	2022			2021			2022			2021
Revenues	$	(121.7	)	$	(100.4	)	$	(425.2	)	$	(303.8	)

Gain (Loss) Recognized in Income on Derivatives

The use of mark-to-market accounting for financial instruments can cause non-cash earnings volatility due to changes in the underlying commodity price indices. For the three and nine months ended September 30, 2022, the unrealized mark-to-market losses are primarily attributable to unfavorable movements in natural gas forward prices, as compared to our positions.

	Location of Gain (Loss)	Gain (Loss) Recognized in Income on Derivatives
Derivatives Not Designated	Recognized in Income on	Three Months Ended September 30,					Nine Months Ended September 30,
as Hedging Instruments	Derivatives	2022			2021		2022			2021
Commodity contracts	Revenue	$	(121.5	)	$	16.7	$	(317.5	)	$	(24.8	)