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Derivative Instruments and Hedging Activities (Tables)
 12 Months Ended
Dec. 31, 2021
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Notional Volume of Commodity Hedges

At December 31, 2021, the notional volumes of our commodity derivative contracts were:

 

Commodity

Instrument

Unit

2022

 

2023

 

2024

 

2025

 

Natural Gas

Swaps

MMBtu/d

 

152,262

 

 

83,862

 

 

34,221

 

 

7,479

 

Natural Gas

Basis Swaps

MMBtu/d

 

339,925

 

 

275,000

 

 

240,000

 

 

110,041

 

NGL

Swaps

Bbl/d

 

33,936

 

 

19,228

 

 

7,292

 

 

—

 

NGL

Futures

Bbl/d

 

8,099

 

 

—

 

 

—

 

 

—

 

Condensate

Swaps

Bbl/d

 

4,790

 

 

3,055

 

 

1,070

 

 

—

 
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

December 31, 2021

 

 

Fair Value as of

December 31, 2020

 

 

 

Balance Sheet

 

Derivative

 

 

Derivative

 

 

Derivative

 

 

Derivative

 

 

 

Location

 

Assets

 

 

Liabilities

 

 

Assets

 

 

Liabilities

 

Derivatives designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity contracts

 

Current

 

$

25.5

 

 

$

(252.6

)

 

$

24.2

 

 

$

(140.2

)

 

 

Long-term

 

 

6.2

 

 

 

(84.3

)

 

 

5.1

 

 

 

(43.4

)

Total derivatives designated as hedging instruments

 

 

 

$

31.7

 

 

$

(336.9

)

 

$

29.3

 

 

$

(183.6

)

Derivatives not designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity contracts

 

Current

 

$

17.6

 

 

$

(5.6

)

 

$

61.3

 

 

$

(2.4

)

 

 

Long-term

 

 

1.5

 

 

 

(25.0

)

 

 

44.2

 

 

 

—

 

Total derivatives not designated as hedging instruments

 

 

 

$

19.1

 

 

$

(30.6

)

 

$

105.5

 

 

$

(2.4

)

Total current position

 

 

 

$

43.1

 

 

$

(258.2

)

 

$

85.5

 

 

$

(142.6

)

Total long-term position

 

 

 

 

7.7

 

 

 

(109.3

)

 

 

49.3

 

 

 

(43.4

)

Total derivatives

 

 

 

$

50.8

 

 

$

(367.5

)

 

$

134.8

 

 

$

(186.0

)
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

 

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

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Presentation

 

 

Pro Forma Net Presentation

 

December 31, 2020

 

Asset

 

 

Liability

 

 

Collateral

 

 

Asset

 

 

Liability

 

Current Position

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Counterparties with offsetting positions or collateral

 

$

81.1

 

 

$

(142.0

)

 

$

29.8

 

 

$

15.7

 

 

$

(46.8

)

 

Counterparties without offsetting positions - assets

 

 

4.4

 

 

 

—

 

 

 

—

 

 

 

4.4

 

 

 

—

 

 

Counterparties without offsetting positions - liabilities

 

 

—

 

 

 

(0.6

)

 

 

—

 

 

 

—

 

 

 

(0.6

)

 

 

 

 

85.5

 

 

 

(142.6

)

 

 

29.8

 

 

 

20.1

 

 

 

(47.4

)

Long-Term Position

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Counterparties with offsetting positions or collateral

 

 

37.8

 

 

 

(42.5

)

 

 

—

 

 

 

14.6

 

 

 

(19.3

)

 

Counterparties without offsetting positions - assets

 

 

11.5

 

 

 

—

 

 

 

—

 

 

 

11.5

 

 

 

—

 

 

Counterparties without offsetting positions - liabilities

 

 

—

 

 

 

(0.9

)

 

 

—

 

 

 

—

 

 

 

(0.9

)

 

 

 

 

49.3

 

 

 

(43.4

)

 

 

—

 

 

 

26.1

 

 

 

(20.2

)

Total Derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Counterparties with offsetting positions or collateral

 

 

118.9

 

 

 

(184.5

)

 

 

29.8

 

 

 

30.3

 

 

 

(66.1

)

 

Counterparties without offsetting positions - assets

 

 

15.9

 

 

 

—

 

 

 

—

 

 

 

15.9

 

 

 

—

 

 

Counterparties without offsetting positions - liabilities

 

 

—

 

 

 

(1.5

)

 

 

—

 

 

 

—

 

 

 

(1.5

)

 

 

 

$

134.8

 

 

$

(186.0

)

 

$

29.8

 

 

$

46.2

 

 

$

(67.6

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

The following tables reflect amounts recorded in OCI and amounts reclassified from OCI to revenue for the periods indicated:

 

Derivatives in Cash Flow

 

Gain (Loss) Recognized in OCI on Derivatives (Effective Portion)

 

Hedging Relationships

 

2021

 

 

2020

 

 

2019

 

Commodity contracts

 

$

(534.6

)

 

$

(218.3

)

 

$

135.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain (Loss) Reclassified from OCI into Income (Effective Portion)

 

Location of Gain (Loss)

 

2021

 

 

2020

 

 

2019

 

Revenues

 

$

(417.3

)

 

$

90.8

 

 

$

138.0

 
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 year ended December 31, 2021, the unrealized mark-to-market losses are primarily attributable to unfavorable movements in natural gas forward basis prices, as compared to our positions.

 

Derivatives Not Designated

 

Location of Gain (Loss) Recognized in Income

 

Gain (Loss) Recognized in Income on Derivatives

 

as Hedging Instruments

 

on Derivatives

 

2021

 

 

2020

 

 

2019

 

Commodity contracts

 

Revenue

 

$

(73.3

)

 

$

206.1

 

 

$

(142.1

)