DERIVATIVES (Tables)

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of derivative instruments

The following table presents the Company’s derivative position for the production periods indicated as of December 31, 2019:

Description		Notional Volume (Bbls/d)	Production Period	Weighted Average Price ($/Bbl)
Oil Positions
Oil Swaps		1,028	January 2020 - December 2020	$	56.28
Oil Swaps		370	January 2021 - December 2021	$	53.07
Basis Swaps (1)		1,500	January 2020 - December 2020	$	(5.62	)
3 Way Collar	Floor sold price (put)	228	January 2020 - December 2020	$	40.00
3 Way Collar	Floor purchase price (put)	228	January 2020 - December 2020	$	50.00
3 Way Collar	Ceiling sold price (call)	228	January 2020 - December 2020	$	59.60
3 Way Collar	Floor sold price (put)	80	January 2021 - December 2021	$	37.50
3 Way Collar	Floor purchase price (put)	80	January 2021 - December 2021	$	47.50
3 Way Collar	Ceiling sold price (call)	80	January 2021 - December 2021	$	59.30
Oil Collar	Floor purchase price (put)	512	January 2020 - December 2020	$	49.50
Oil Collar	Ceiling sold price (call)	512	January 2020 - December 2020	$	63.87
Oil Collar	Floor purchase price (put)	742	January 2021 - December 2021	$	50.00
Oil Collar	Ceiling sold price (call)	742	January 2021 - December 2021	$	59.70
Description		Notional Volume (MMBtus/d)	Production Period	Weighted Average Price ($/MMBtu)
Natural Gas Positions
Gas Swaps		4,557	January 2020 - December 2020	$	2.57
Gas Swaps		4,184	January 2021 - March 2021	$	2.77
3 Way Collar	Floor sold price (put)	563	January 2020 - December 2020	$	1.60
3 Way Collar	Floor purchase price (put)	563	January 2020 - December 2020	$	2.10
3 Way Collar	Ceiling sold price (call)	563	January 2020 - December 2020	$	3.00
3 Way Collar	Floor sold price (put)	133	January 2021 - December 2021	$	1.65
3 Way Collar	Floor purchase price (put)	133	January 2021 - December 2021	$	2.15
3 Way Collar	Ceiling sold price (call)	133	January 2021 - December 2021	$	3.05
Gas Collar	Floor purchase price (put)	2,748	January 2020 - December 2020	$	2.55
Gas Collar	Ceiling sold price (call)	2,748	January 2020 - December 2020	$	3.07
Gas Collar	Floor purchase price (put)	4,464	January 2021 - December 2021	$	2.20
Gas Collar	Ceiling sold price (call)	4,464	January 2021 - December 2021	$	2.97

⁽¹⁾  The weighted average price under these basis swaps is the fixed price differential between the index prices of the Midland WTI and the Cushing WTI.

The table below summarizes the Company’s net gain (loss) on commodity derivatives for the year endedDecember 31, 2019 and 2018:

	Year Ended December 31,
	2019			2018
	(in thousands)
Unrealized gain (loss) on unsettled derivatives	$	(5,575	)	$	1,977
Net settlements paid on derivative contracts	(3,214		)	(2,742		)
Net settlements receivable (payable) on derivative contracts	(196		)	820
Net gain (loss) on commodity derivatives	$	(8,985	)	$	55

The following information summarizes the gross fair values of derivative instruments, presenting the impact of offsetting the derivative assets and liabilities on the Company’s consolidated balance sheets as of December 31, 2019 and as of December 31, 2018:

	As of December 31, 2019
	Gross Amount of Recognized Assets and Liabilities			Gross Amounts Offset in the Consolidated Balance Sheets			Net Amounts Presented in the Consolidated Balance Sheets
	(In thousands)
Offsetting Derivative Assets:
Current assets	$	1,009		$	(582	)	$	427
Long-term assets	359			(172		)	187
Total assets	$	1,368		$	(754	)	$	614
Offsetting Derivative Liabilities:
Current liabilities	$	(4,827	)	$	582		$	(4,245	)
Current embedded derivative liabilities	(799		)	—			(799		)
Long-term commodity derivative liabilities	(172		)	172			—
Long-term embedded derivative liabilities	(2,439		)	—			(2,439		)
Total liabilities	$	(8,237	)	$	754		$	(7,483	)

	As of December 31, 2018
	Gross Amount of Recognized Assets and Liabilities			Gross Amounts Offset in the Consolidated Balance Sheets			Net Amounts Presented in the Consolidated Balance Sheets
	(In thousands)
Offsetting Derivative Assets:
Current assets	$	4,122		$	(1,571	)	$	2,551
Long-term assets	1,854			(32		)	1,822
Total assets	$	5,976		$	(1,603	)	$	4,373
Offsetting Derivative Liabilities:
Current liabilities	$	(2,086	)	$	1,571		$	(515	)
Long-term commodity derivative liabilities	(2,766		)	32			(2,734		)
Long-term embedded derivative liabilities	(1,965		)	—			(1,965		)
Total liabilities	$	(6,817	)	$	1,603		$	(5,214	)

The Company’s derivative instruments as of December 31, 2019 and 2018, include the following:

	December 31,
	2019			2018
	(In thousands)
Derivative assets (liabilities):
Derivative assets - current	$	427		$	2,551
Derivative assets - non-current (1)	187			1,822
Derivative liabilities - current (3)	(5,044		)	(515		)
Derivative liabilities - non-current (2) (3) (4)	(2,439		)	(4,699		)
Total derivative liabilities, net	$	(6,869	)	$	(841	)

⁽¹⁾ The non-current derivative assets are included in other assets in the consolidated balance sheets.

⁽²⁾ The non-current derivative liabilities are included in long-term derivative instruments and other non-current liabilities in the consolidation balance sheets.

⁽³⁾ The ARM sales agreement includes an embedded derivative. As of December 31, 2019, the embedded derivative is included as current liabilities and non-current liabilities of $0.8 million and $2.4 million, respectively.

⁽⁴⁾ Includes $2.0 million embedded derivative associated with Second Lien Term Loan and $2.7 million in commodity derivatives as of December 31, 2018.