Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2018

Derivative Instruments.

Schedule of outstanding commodity derivatives

	Natural gas MMbtu/day	Weighted average index price
Three months ending March 31, 2019:
NYMEX ($/MMBtu)	2,330,000	$	3.62
Three months ending June 30, 2019:
NYMEX ($/MMBtu)	755,000	$	3.26
Three months ending September 30, 2019:
NYMEX ($/MMBtu)	755,000	$	3.32
Three months ending December 31, 2019:
NYMEX ($/MMBtu)	755,000	$	3.45
Year ending December 31, 2020:
NYMEX ($/MMBtu)	1,417,500	$	3.00
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

Tabular disclosure of commodity derivatives basis differential positions which settle on the pricing index to basis differential of Columbia Gas (TCO) to the NYMEX Henry Hub natural gas price.

As of December 31, 2018, the Company’s fixed price natural gas collar positions from April 1, 2019 through December 31, 2019 were as follows (abbreviations in the table refer to the index to which the collar position is tied, as follows: NYMEX=Henry Hub.

	Natural gas	Weighted average index price
	MMbtu/day	Ceiling price		Floor price
Three months ending June 30, 2019:
NYMEX ($/MMBtu)	1,575,000	$	3.30	$	2.50
Three months ending September 30, 2019:
NYMEX ($/MMBtu)	1,575,000	$	3.30	$	2.50
Three months ending December 31, 2019:
NYMEX ($/MMBtu)	1,575,000	$	3.52	$	2.50

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

	December 31, 2017			December 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	$	245,263
Commodity derivatives - noncurrent	Derivative instruments		841,257	Derivative instruments		362,169
Total asset derivatives			1,301,942			607,432
Liability derivatives not designated as hedges for accounting purposes:
Marketing derivatives - current	Derivative instruments		21,394	Derivative instruments		—
Commodity derivatives - current	Derivative instruments		7,082	Derivative instruments		532
Commodity derivatives - noncurrent	Derivative instruments		207	Derivative instruments		—
Total liability derivatives			28,683			532
Net derivatives		$	1,273,259		$	606,900

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						December 31, 2018
	Gross amounts on balance sheet		Gross amounts offset on balance sheet		Net amounts of assets (liabilities) 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	$	658,830		(51,398)		607,432
Commodity derivative liabilities	$	(72,901)		65,612		(7,289)	$	(51,930)		51,398		(532)
Marketing derivative assets	$	311,083		(311,083)		—	$	—		—		—
Marketing derivative liabilities	$	(332,477)		311,083		(21,394)	$	—		—		—

Summary of derivative fair value gains (losses)

The following is a summary of derivative fair value gains and losses and where such values are recorded in the consolidated statements of operations for the years ended December 31, 2016,  2017, and 2018 (in thousands):

	Statement of operations	Year ended December 31,
	location	2016		2017		2018
Commodity derivative fair value gains (losses)	Revenue	$	(514,181)		658,283		(87,594)
Marketing derivative fair value  gains (losses)	Revenue	$	—		(21,394)		94,081