Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of outstanding commodity derivatives

				Weighted
				Average
Commodity / Settlement Period	Index	Contracted Volume		Price
Natural Gas
January-December 2022	Henry Hub	1,155,486	MMBtu/day	$	2.50	/MMBtu
January-December 2023	Henry Hub	43,000	MMBtu/day		2.37	/MMBtu

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

				Weighted Average
Commodity / Settlement Period	Index to Basis Differential	Contracted Volume		Hedged Differential
Natural Gas
January-December 2022	NYMEX to TCO	60,000	MMBtu/day	$	0.515	/MMBtu
January-December 2023	NYMEX to TCO	50,000	MMBtu/day		0.525	/MMBtu
January-December 2024	NYMEX to TCO	50,000	MMBtu/day		0.530	/MMBtu

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

The table below presents a summary of the fair values of the Company’s derivative instruments and where such values are recorded in the consolidated balance sheets (in thousands).

	Balance Sheet	December 31,		December 31,
	Location	2020		2021
Asset derivatives not designated as hedges for accounting purposes:
Commodity derivatives—current	Derivative instruments	$	97,144		—
Embedded derivatives—current	Derivative instruments		7,986		757
Commodity derivatives—noncurrent	Derivative instruments		14,689		—
Embedded derivatives—noncurrent	Derivative instruments		32,604		14,369
Total asset derivatives (1)			152,423		15,126
Liability derivatives not designated as hedges for accounting purposes:
Commodity derivatives—current (2)	Derivative instruments		31,242		559,851
Commodity derivatives—noncurrent (2)	Derivative instruments		99,172		181,806
Total liability derivatives (1)			130,414		741,657
Net derivatives asset (liability) (1)		$	22,009		(726,531)

(1) The fair value of derivative instruments was determined using Level 2 inputs.

(2) As of December 31, 2020, approximately $14 million of commodity derivative liabilities, including $7 million of current commodity derivatives and $7 million of noncurrent commodity derivatives, are attributable to the Company’s consolidated VIE, Martica. As of December 31, 2021, approximately $55 million of commodity derivative liabilities, including $31 million of current commodity derivatives and $24 million of noncurrent commodity derivatives, are attributable to the Company’s consolidated VIE, Martica

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 sets forth 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, 2020						December 31, 2021
					Net Amounts of						Net Amounts of
	Gross		Gross		Assets		Gross		Gross		Assets
	Amounts		Amounts Offset		(Liabilities) on		Amounts		Amounts Offset		(Liabilities) on
	Recognized		Recognized		Balance Sheet		Recognized		Recognized		Balance Sheet
Commodity derivative assets	$	181,375		(69,542)		111,833		2,177		(2,177)		—
Embedded derivative assets	$	40,590		—		40,590		15,126		—		15,126
Commodity derivative liabilities	$	(199,956)		69,542		(130,414)		(743,834)		2,177		(741,657)

Summary of derivative fair value gains (losses)

The following table sets forth a summary of derivative fair value gains and losses and where such values are recorded in the consolidated statements of operations (in thousands):

	Statement of
	Operations	Year Ended December 31,
	Location	2019		2020		2021
Commodity derivative fair value gains (losses) (1)	Revenue	$	463,972		40,565		(1,886,551)
Embedded derivative fair value gains (losses) (1)	Revenue	$	—		39,353		(49,958)

(1) The fair value of derivative instruments was determined using Level 2 inputs.

VIE, Martica

Schedule of outstanding commodity derivatives

				Weighted
				Average
Commodity / Settlement Period	Index	Contracted Volume		Price
Natural Gas
January-December 2022	Henry Hub	38,356	MMBtu/day	$	2.39	/MMBtu
January-December 2023	Henry Hub	35,616	MMBtu/day		2.35	/MMBtu
January-December 2024	Henry Hub	23,885	MMBtu/day		2.33	/MMBtu
January-March 2025	Henry Hub	18,021	MMBtu/day		2.53	/MMBtu
Ethane
January-March 2022	Mont Belvieu Purity Ethane-OPIS	521	Bbl/day	$	6.68	/Bbl
Propane
January-December 2022	Mont Belvieu Propane-OPIS Non-TET	934	Bbl/day	$	19.20	/Bbl
Natural Gasoline
January-December 2022	Mont Belvieu Natural Gasoline-OPIS Non-TET	282	Bbl/day	$	34.37	/Bbl
January-December 2023	Mont Belvieu Natural Gasoline-OPIS Non-TET	247	Bbl/day		40.74	/Bbl
Oil
January-December 2022	West Texas Intermediate	112	Bbl/day	$	43.51	/Bbl
January-December 2023	West Texas Intermediate	99	Bbl/day		44.88	/Bbl
January-December 2024	West Texas Intermediate	43	Bbl/day		44.02	/Bbl
January-March 2025	West Texas Intermediate	39	Bbl/day		45.06	/Bbl