DERIVATIVES (Tables)

3 Months Ended

Mar. 31, 2020

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 March 31, 2020:

Description		Notional Volume (Bbls/d)	Production Period	Weighted Average Price ($/Bbl)
Oil Positions
Oil Swaps		992	April 2020 - December 2020	$	56.21
Oil Swaps		370	January 2021 - December 2021	$	53.07
Basis Swaps (1)		1,500	April 2020 - December 2020	$	(5.62	)
3 Way Collar	Floor sold price (put)	182	April 2020 - December 2020	$	40.00
3 Way Collar	Floor purchase price (put)	182	April 2020 - December 2020	$	50.00
3 Way Collar	Ceiling sold price (call)	182	April 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)	466	April 2020 - December 2020	$	49.48
Oil Collar	Ceiling sold price (call)	466	April 2020 - December 2020	$	63.81
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		5,881	April 2020 - December 2020	$	2.57
Gas Swaps		4,184	January 2021 - March 2021	$	2.77
3 Way Collar	Floor sold price (put)	434	April 2020 - December 2020	$	1.60
3 Way Collar	Floor purchase price (put)	434	April 2020 - December 2020	$	2.10
3 Way Collar	Ceiling sold price (call)	434	April 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)	1,081	April 2020 - December 2020	$	2.20
Gas Collar	Ceiling sold price (call)	1,081	April 2020 - December 2020	$	3.08
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 threeMarch 31, 2020 and 2019:

	Three Months Ended March 31,
	2020			2019
	(in thousands)
Unrealized gain (loss) on unsettled derivatives	$	19,993		$	(8,976	)
Net settlements paid on derivative contracts	(198		)	(842		)
Net settlements receivable (payable) on derivative contracts	1,403			(759		)
Net gain (loss) on commodity derivatives	$	21,198		$	(10,577	)

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 March 31, 2020 and as of December 31, 2019:

	As of March 31, 2020
	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 Commodity Derivative Assets:
Current assets	$	12,931		$	(71	)	$	12,860
Long-term assets	4,469			—			4,469
Total assets	$	17,400		$	(71	)	$	17,329
Offsetting Derivative Liabilities:
Current commodity derivative liabilities	$	(1,240	)	$	71		$	(1,169	)
Current embedded derivative liabilities	(7,461		)	—			(7,461		)
Long-term embedded derivative liabilities	(13,140		)	—			(13,140		)
Total liabilities	$	(21,841	)	$	71		$	(21,770	)

	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 Commodity Derivative Assets:
Current asset	$	1,009		$	(582	)	$	427
Long-term asset	359			(172		)	187
Total asset	$	1,368		$	(754	)	$	614
Offsetting Derivative Liabilities:
Current commodity derivative 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 liability	$	(8,237	)	$	754		$	(7,483	)

The Company’s derivative instruments as of March 31, 2020 and December 31, 2019, include the following:

	March 31, 2020			December 31, 2019
	(In thousands)
Derivative assets (liabilities):
Derivative assets - current	$	12,860		$	427
Derivative assets - non-current (1)	4,469			187
Derivative liabilities - current (3)	(8,630		)	(5,044		)
Derivative liabilities - non-current (2) (3)	(13,140		)	(2,439		)
Total derivative liabilities, net	$	(4,441	)	$	(6,869	)

⁽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 March 31, 2020, the embedded derivative is included as current liabilities and non-current liabilities of $7.5 million and $13.1 million, respectively. 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.