Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2020

Derivative Instruments.

Schedule of outstanding commodity derivatives

		Natural Gas		Weighted
	Natural gas	Liquids	Oil	average index
	MMBtu/day	Bbls/day	Bbls/day	price
Nine months ending December 31, 2020:
NYMEX ($/MMBtu)	2,227,500		—	$	2.87
ARA Propane ($/Gal)	—	10,352	—		0.65
NYMEX-WTI ($/Bbl)	—	—	26,000		55.63
Total	2,227,500	10,352	26,000
Year ending December 31, 2021:
NYMEX ($/MMBtu)	2,400,000		—	$	2.80
NYMEX-WTI ($/Bbl)	—		3,000		55.16
Total	2,400,000		3,000
Year ending December 31, 2022:
NYMEX ($/MMBtu)	687,500			$	2.48
Year ending December 31, 2023:
NYMEX ($/MMBtu)	50,000			$	2.39

Schedule of natural gas basis swap positions which settle on pricing index to basis differential of NYMEX to TCO

		Natural Gas	Weighted
	Natural gas	Liquids	average hedged
	MMBtu/day	Bbls/day	differential
Three months ending June 30, 2020:
ARA to Mont Belvieu Non-TET ($/Gal)	—	1,602	$	0.22
Nine months ending December 31, 2020:
NYMEX to TCO ($/MMBtu)	60,000		$	0.353
Year ending December 31, 2021:
NYMEX to TCO ($/MMBtu)	40,000		$	0.414
Year ending December 31, 2022:
NYMEX to TCO ($/MMBtu)	60,000		$	0.515
Year ending December 31, 2023:
NYMEX to TCO ($/MMBtu)	50,000		$	0.525
Year ending December 31, 2024:
NYMEX to TCO ($/MMBtu)	50,000		$	0.530

Schedule 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.

		Weighted
	Gas	average
	Liquids	Payout
	Bbls/day	Ratio
Nine months ending December 31, 2020:
Mont Belvieu Natural Gasoline to NYMEX-WTI	18,800	80	%
Year ending December 31, 2021:
Mont Belvieu Natural Gasoline to NYMEX-WTI	18,650	78	%

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

	December 31, 2019			March 31, 2020
	Balance sheet	Fair value		Balance sheet	Fair value
	location	(In thousands)		location	(In thousands)
Asset derivatives not designated as hedges for accounting purposes:
Commodity derivatives—current	Derivative instruments	$	422,849	Derivative instruments	$	816,444
Commodity derivatives—noncurrent	Derivative instruments		333,174	Derivative instruments		284,461
Total asset derivatives			756,023			1,100,905
Liability derivatives not designated as hedges for accounting purposes:
Commodity derivatives—current	Derivative instruments		6,721	Derivative instruments		—
Commodity derivatives—noncurrent	Derivative instruments		3,519	Derivative instruments		215
Total liability derivatives			10,240			215
Net derivatives		$	745,783		$	1,100,690

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, 2019						March 31, 2020
	Gross		Gross amounts		Net amounts of		Gross		Gross amounts		Net amounts of
	amounts on		offset on		assets (liabilities)		amounts on		offset on		assets (liabilities)
	balance sheet		balance sheet		on balance sheet		balance sheet		balance sheet		on balance sheet
Commodity derivative assets	$	882,817		(126,794)		756,023	$	1,193,046		(92,141)		1,100,905
Commodity derivative liabilities	$	(137,034)		126,794		(10,240)	$	(92,356)		92,141		(215)

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 unaudited condensed consolidated statements of operations for the three months ended March 31, 2019 and 2020 (in thousands):

	Statement of
	operations	Three months ended March 31,
	location	2019		2020
Commodity derivative fair value gains (losses)	Revenue	$	(77,368)		565,833