XML 44 R32.htm IDEA: XBRL DOCUMENT v3.20.2
Derivative Instruments and Hedging Activities (Tables)
 6 Months Ended
Jun. 30, 2020
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Notional Volume of Commodity Hedges

At June 30, 2020, the notional volumes of our commodity derivative contracts were:

 

Commodity

Instrument

Unit

2020

 

2021

 

2022

 

2023

 

2024

 

2025

 

Natural Gas

Swaps

MMBtu/d

 

167,230

 

 

166,216

 

 

86,100

 

 

20,000

 

 

-

 

 

-

 

Natural Gas

Basis Swaps

MMBtu/d

 

416,374

 

 

450,566

 

 

295,390

 

 

250,000

 

 

90,000

 

 

5,000

 

NGL

Swaps

Bbl/d

 

30,814

 

 

23,729

 

 

12,371

 

 

-

 

 

-

 

 

-

 

NGL

Futures

Bbl/d

 

39,370

 

 

12,288

 

 

-

 

 

-

 

 

-

 

 

-

 

Condensate

Swaps

Bbl/d

 

5,190

 

 

5,864

 

 

1,610

 

 

-

 

 

-

 

 

-

 
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 June 30, 2020

 

 

Fair Value as of December 31, 2019

 

 

 

Balance Sheet

 

Derivative

 

 

Derivative

 

 

Derivative

 

 

Derivative

 

 

 

Location

 

Assets

 

 

Liabilities

 

 

Assets

 

 

Liabilities

 

Derivatives designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity contracts

 

Current

 

$

99.2

 

 

$

74.6

 

 

$

102.1

 

 

$

11.6

 

 

 

Long-term

 

 

36.1

 

 

 

32.6

 

 

 

33.7

 

 

 

6.4

 

Total derivatives designated as hedging instruments

 

 

 

$

135.3

 

 

$

107.2

 

 

$

135.8

 

 

$

18.0

 

Derivatives not designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity contracts

 

Current

 

$

22.8

 

 

$

5.9

 

 

$

1.2

 

 

$

92.5

 

 

 

Long-term

 

 

7.2

 

 

 

20.3

 

 

 

1.8

 

 

 

34.4

 

Total derivatives not designated as hedging instruments

 

 

 

$

30.0

 

 

$

26.2

 

 

$

3.0

 

 

$

126.9

 

Total current position

 

 

 

$

122.0

 

 

$

80.5

 

 

$

103.3

 

 

$

104.1

 

Total long-term position

 

 

 

 

43.3

 

 

 

52.9

 

 

 

35.5

 

 

 

40.8

 

Total derivatives

 

 

 

$

165.3

 

 

$

133.4

 

 

$

138.8

 

 

$

144.9

 

 
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

 

June 30, 2020

Asset

 

 

Liability

 

 

Collateral

 

 

Asset

 

 

Liability

 

Current Position

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Counterparties with offsetting positions or collateral

$

108.9

 

 

$

(80.5

)

 

$

48.2

 

 

$

76.6

 

 

$

-

 

 

Counterparties without offsetting positions - assets

 

13.1

 

 

 

-

 

 

 

-

 

 

 

13.1

 

 

 

-

 

 

Counterparties without offsetting positions - liabilities

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

122.0

 

 

 

(80.5

)

 

 

48.2

 

 

 

89.7

 

 

 

-

 

Long Term Position

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Counterparties with offsetting positions or collateral

 

31.5

 

 

 

(49.3

)

 

 

-

 

 

 

6.6

 

 

 

(24.4

)

 

Counterparties without offsetting positions - assets

 

11.8

 

 

 

-

 

 

 

-

 

 

 

11.8

 

 

 

-

 

 

Counterparties without offsetting positions - liabilities

 

-

 

 

 

(3.6

)

 

 

-

 

 

 

-

 

 

 

(3.6

)

 

 

 

43.3

 

 

 

(52.9

)

 

 

-

 

 

 

18.4

 

 

 

(28.0

)

Total Derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Counterparties with offsetting positions or collateral

 

140.4

 

 

 

(129.8

)

 

 

48.2

 

 

 

83.2

 

 

 

(24.4

)

 

Counterparties without offsetting positions - assets

 

24.9

 

 

 

-

 

 

 

-

 

 

 

24.9

 

 

 

-

 

 

Counterparties without offsetting positions - liabilities

 

-

 

 

 

(3.6

)

 

 

-

 

 

 

-

 

 

 

(3.6

)

 

 

$

165.3

 

 

$

(133.4

)

 

$

48.2

 

 

$

108.1

 

 

$

(28.0

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Presentation

 

 

Pro Forma Net Presentation

 

December 31, 2019

Asset

 

 

Liability

 

 

Collateral

 

 

Asset

 

 

Liability

 

Current Position

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Counterparties with offsetting positions or collateral

$

99.8

 

 

$

(85.0

)

 

$

(4.9

)

 

$

56.0

 

 

$

(46.1

)

 

Counterparties without offsetting positions - assets

 

3.5

 

 

 

-

 

 

 

-

 

 

 

3.5

 

 

 

-

 

 

Counterparties without offsetting positions - liabilities

 

-

 

 

 

(19.1

)

 

 

-

 

 

 

-

 

 

 

(19.1

)

 

 

 

103.3

 

 

 

(104.1

)

 

 

(4.9

)

 

 

59.5

 

 

 

(65.2

)

Long Term Position

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Counterparties with offsetting positions or collateral

 

33.3

 

 

 

(40.5

)

 

 

-

 

 

 

18.1

 

 

 

(25.3

)

 

Counterparties without offsetting positions - assets

 

2.2

 

 

 

-

 

 

 

-

 

 

 

2.2

 

 

 

-

 

 

Counterparties without offsetting positions - liabilities

 

-

 

 

 

(0.3

)

 

 

-

 

 

 

-

 

 

 

(0.3

)

 

 

 

35.5

 

 

 

(40.8

)

 

 

-

 

 

 

20.3

 

 

 

(25.6

)

Total Derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Counterparties with offsetting positions or collateral

 

133.1

 

 

 

(125.5

)

 

 

(4.9

)

 

 

74.1

 

 

 

(71.4

)

 

Counterparties without offsetting positions - assets

 

5.7

 

 

 

-

 

 

 

-

 

 

 

5.7

 

 

 

-

 

 

Counterparties without offsetting positions - liabilities

 

-

 

 

 

(19.4

)

 

 

-

 

 

 

-

 

 

 

(19.4

)

 

 

$

138.8

 

 

$

(144.9

)

 

$

(4.9

)

 

$

79.8

 

 

$

(90.8

)

 

 
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 June 30,

 

 

Six Months Ended June 30,

 

Hedging Relationships

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Commodity contracts

 

$

(133.0

)

 

$

88.4

 

 

$

26.2

 

 

$

49.6

 

 

 

 

Gain (Loss) Reclassified from OCI into

Income (Effective Portion)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

Location of Gain (Loss)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Revenues

 

$

60.2

 

 

$

43.3

 

 

$

120.3

 

 

$

64.6

 
Gain (Loss) Recognized in Income on Derivatives For the three and six months ended June 30, 2020, the unrealized mark-to-market gains are primarily attributable to favorable movements in natural gas forward basis prices, as compared to our hedged positions.

 

 

 

Location of Gain

 

Gain (Loss) Recognized in Income on Derivatives

 

Derivatives Not Designated

 

Recognized in Income on

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

as Hedging Instruments

 

Derivatives

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Commodity contracts

 

Revenue

 

$

8.1

 

 

$

(1.1

)

 

$

107.8

 

 

$

(10.5

)