Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2018

Derivative Instruments.

Schedule of outstanding commodity derivatives

As of March 31, 2018, the Company’s fixed price natural gas, NGLs, and oil swap positions from April 1, 2018 through December 31, 2023 were as follows (abbreviations in the table refer to the index to which the swap position is tied, as follows: NYMEX=Henry Hub; Mont Belvieu-Propane=Mont Belvieu Propane; NYMEX-WTI=West Texas Intermediate):

	Natural gas MMbtu/day	Oil Bbls/day	Natural Gas Liquids Bbls/day	Weighted average index price
Three months ending June 30, 2018:
NYMEX ($/MMBtu)	2,002,500	—	—	$	3.42
NYMEX-WTI ($/Bbl)	—	6,000	—	$	56.99
Mont Belvieu-Propane ($/Gallon)	—	—	26,000	$	0.76
Total	2,002,500	6,000	26,000
Three months ending September 30, 2018:
NYMEX ($/MMBtu)	2,002,500	—	—	$	3.45
NYMEX-WTI ($/Bbl)	—	6,000	—	$	56.99
Mont Belvieu-Propane ($/Gallon)	—	—	26,000	$	0.76
Total	2,002,500	6,000	26,000
Three months ending December 31, 2018:
NYMEX ($/MMBtu)	2,002,500	—	—	$	3.53
NYMEX-WTI ($/Bbl)	—	6,000	—	$	56.99
Mont Belvieu-Propane ($/Gallon)	—	—	26,000	$	0.77
Total	2,002,500	6,000	26,000
Year ending December 31, 2019:
NYMEX ($/MMBtu)	2,330,000			$	3.50
Year ending December 31, 2020:
NYMEX ($/MMBtu)	1,417,500			$	3.25
Year ending December 31, 2021:
NYMEX ($/MMBtu)	710,000			$	3.00
Year ending December 31, 2022:
NYMEX ($/MMBtu)	850,000			$	3.00
Year ending December 31, 2023:
NYMEX ($/MMBtu)	90,000			$	2.91

Summary of the fair values of derivative instruments, which are not designated as hedges for accounting purposes

	December 31, 2017			March 31, 2018
	Balance sheet location	Fair value		Balance sheet location	Fair value
		(In thousands)			(In thousands)
Asset derivatives not designated as hedges for accounting purposes:
Commodity derivatives - current	Derivative instruments	$	460,685	Derivative instruments	$	459,892
Commodity derivatives - noncurrent	Derivative instruments		841,257	Derivative instruments		760,562
Total asset derivatives			1,301,942			1,220,454
Liability derivatives not designated as hedges for accounting purposes:
Marketing derivatives - current	Derivative instruments		21,394	Derivative instruments		37,202
Commodity derivatives - current	Derivative instruments		7,082	Derivative instruments		4,705
Commodity derivatives - noncurrent	Derivative instruments		207	Derivative instruments		—
Total liability derivatives			28,683			41,907
Net derivatives		$	1,273,259		$	1,178,547

Schedule of gross amounts of recognized derivative assets and liabilities, the amounts offset under netting arrangements with counterparties, and the resulting net amounts

The following table presents the gross values of recognized derivative assets and liabilities, the amounts offset under master netting arrangements with counterparties, and the resulting net amounts presented in the consolidated balance sheets as of the dates presented, all at fair value (in thousands):

	December 31, 2017						March 31, 2018
	Gross amounts on balance sheet		Gross amounts offset on balance sheet		Net amounts of assets on balance sheet		Gross amounts on balance sheet		Gross amounts offset on balance sheet		Net amounts of assets (liabilities) on balance sheet
Commodity derivative assets	$	1,367,554		(65,612)		1,301,942	$	1,265,716		(45,262)		1,220,454
Commodity derivative liabilities	$	(72,901)		65,612		(7,289)	$	(49,967)		45,262		(4,705)
Marketing derivative assets	$	311,083		(311,083)		—	$	—		—		—
Marketing derivative liabilities	$	(332,477)		311,083		(21,394)	$	(37,202)		—		(37,202)

Summary of derivative fair value gains (losses)

The following is a summary of derivative fair value gains and where such values are recorded in the condensed consolidated statements of operations for the three months ended March 31, 2017 and 2018 (in thousands):

	Statement of operations	Three months ended March 31,
	location	2017		2018
Commodity derivative gains	Revenue	$	438,775		22,437
Marketing derivative gains	Revenue	$	—		94,234