XML 47 R34.htm IDEA: XBRL DOCUMENT v3.22.1
Derivative Instruments and Hedging Activities (Tables)
 3 Months Ended
Mar. 31, 2022
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Notional Volume of Commodity Hedges

At March 31, 2022, the notional volumes of our commodity derivative contracts were:

 

Commodity

Instrument

Unit

2022

 

2023

 

2024

 

2025

 

2026

 

2027

 

Natural Gas

Swaps

MMBtu/d

 

157,714

 

 

102,943

 

 

49,068

 

 

7,479

 

 

—

 

 

—

 

Natural Gas

Basis Swaps

MMBtu/d

 

449,755

 

 

295,000

 

 

280,000

 

 

244,267

 

 

55,000

 

 

10,000

 

NGL

Swaps

Bbl/d

 

37,524

 

 

23,760

 

 

11,209

 

 

230

 

 

—

 

 

—

 

NGL

Futures

Bbl/d

 

6,429

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

Condensate

Swaps

Bbl/d

 

5,106

 

 

3,687

 

 

1,702

 

 

37

 

 

—

 

 

—

 
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 March 31, 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

 

$

22.0

 

 

$

(447.8

)

 

$

25.5

 

 

$

(252.6

)

 

 

Long-term

 

 

4.6

 

 

 

(126.7

)

 

 

6.2

 

 

 

(84.3

)

Total derivatives designated as hedging instruments

 

 

 

$

26.6

 

 

$

(574.5

)

 

$

31.7

 

 

$

(336.9

)

Derivatives not designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity contracts

 

Current

 

$

—

 

 

$

(52.0

)

 

$

17.6

 

 

$

(5.6

)

 

 

Long-term

 

 

2.7

 

 

 

(140.5

)

 

 

1.5

 

 

 

(25.0

)

Total derivatives not designated as hedging instruments

 

 

 

$

2.7

 

 

$

(192.5

)

 

$

19.1

 

 

$

(30.6

)

Total current position

 

 

 

$

22.0

 

 

$

(499.8

)

 

$

43.1

 

 

$

(258.2

)

Total long-term position

 

 

 

 

7.3

 

 

 

(267.2

)

 

 

7.7

 

 

 

(109.3

)

Total derivatives

 

 

 

$

29.3

 

 

$

(767.0

)

 

$

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

 

March 31, 2022

 

Asset

 

 

Liability

 

 

Collateral

 

 

Asset

 

 

Liability

 

Current Position

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Counterparties with offsetting positions or collateral

 

$

22.0

 

 

$

(69.1

)

 

$

3.7

 

 

$

—

 

 

$

(43.4

)

 

Counterparties without offsetting positions - assets

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

Counterparties without offsetting positions - liabilities

 

 

—

 

 

 

(430.7

)

 

 

—

 

 

 

—

 

 

 

(430.7

)

 

 

 

 

22.0

 

 

 

(499.8

)

 

 

3.7

 

 

 

—

 

 

 

(474.1

)

Long-Term Position

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Counterparties with offsetting positions or collateral

 

 

7.3

 

 

 

(203.7

)

 

 

15.5

 

 

 

—

 

 

 

(180.9

)

 

Counterparties without offsetting positions - assets

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

Counterparties without offsetting positions - liabilities

 

 

—

 

 

 

(63.5

)

 

 

—

 

 

 

—

 

 

 

(63.5

)

 

 

 

 

7.3

 

 

 

(267.2

)

 

 

15.5

 

 

 

—

 

 

 

(244.4

)

Total Derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Counterparties with offsetting positions or collateral

 

 

29.3

 

 

 

(272.8

)

 

 

19.2

 

 

 

—

 

 

 

(224.3

)

 

Counterparties without offsetting positions - assets

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

Counterparties without offsetting positions - liabilities

 

 

—

 

 

 

(494.2

)

 

 

—

 

 

 

—

 

 

 

(494.2

)

 

 

 

$

29.3

 

 

$

(767.0

)

 

$

19.2

 

 

$

—

 

 

$

(718.5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 March 31,

 

Hedging Relationships

 

2022

 

 

2021

 

Commodity contracts

 

$

(387.1

)

 

$

(171.5

)

 

 

 

Gain (Loss) Reclassified from OCI into

Income (Effective Portion)

 

 

 

Three Months Ended March 31,

 

Location of Gain (Loss)

 

2022

 

 

2021

 

Revenues

 

$

(145.7

)

 

$

(149.7

)

 
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 months ended March 31, 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 March 31,

 

as Hedging Instruments

 

Derivatives

 

2022

 

 

2021

 

Commodity contracts

 

Revenue

 

$

(177.0

)

 

$

15.0