Our risk management program is intended to reduce our exposure to commodity price volatility and to assist with stabilizing cash flows. Accordingly, we utilize commodity derivative contracts (swaps, calls, puts and collars) to manage a portion of our exposure to commodity prices. We enter into commodity derivative contracts or modify our portfolio of existing commodity derivative contracts when we believe market conditions or other circumstances suggest that it is prudent or as required by our lenders. We account for our commodity derivative contracts at fair value. See Note 5 in this section for a description of our fair value measurements.

We do not designate derivatives as hedges for accounting purposes; therefore, the mark-to-market adjustment reflecting the change in the fair value of our commodity derivative contracts is recorded in current period earnings. When prices for oil are volatile, a significant portion of the effect of our hedging activities consists of non-cash gains or losses due to changes in the fair value of our commodity derivative contracts. In addition to mark-to-market adjustments, gains or losses arise from net amounts paid or received on monthly settlements, proceeds from or payments for termination of contracts prior to their expiration and premiums paid or received for new contracts. Any deferred premiums are recorded as a liability and recognized in earnings as the related contracts mature. Gains and losses on derivatives are included in cash flows from operating activities. Pursuant to the accounting standard that permits netting of assets and liabilities where the right of offset exists, we present the fair value of commodity derivative contracts on a net basis.

At June 30, 2020, our commodity derivative contracts were in a net asset position with a fair value of $12.2 million, whereas at December 31, 2019, our commodity derivative contracts were in a net liability position with a fair value of $1.2 million. All of our commodity derivative contracts are with major financial institutions that are also lenders under our revolving credit facility. Should one of these financial counterparties not perform, we may not realize the benefit of some of our commodity derivative contracts under lower commodity prices and we could incur a loss. As of June 30, 2020, all of our counterparties have performed pursuant to the terms of their commodity derivative contracts.

The following tables summarize the gross fair value by the appropriate balance sheet classification, even when the derivative financial instruments are subject to netting arrangements and qualify for net presentation, in our unaudited condensed consolidated balance sheets at June 30, 2020, and December 31, 2019:

(in thousands)	Gross Amounts Recognized			Gross Amounts Offset in the Unaudited Condensed Consolidated Balance Sheets			Net Amounts Presented in the Unaudited Condensed Consolidated Balance Sheets
June 30, 2020
Assets
Derivative financial instruments - current asset	$	9,032		$	(108	)	$	8,924
Derivative financial instruments - long-term asset		3,497			(177	)	$	3,320
Total		12,529			(285	)		12,244

Liabilities
Derivative financial instruments - current liability		(108	)		108			—
Derivative financial instruments - long-term liability		(177	)		177			—
Total		(285	)		285			—
Net asset	$	12,244		$	—		$	12,244

(in thousands)	Gross Amounts Recognized			Gross Amounts Offset in the Unaudited Condensed Consolidated Balance Sheets			Net Amounts Presented in the Unaudited Condensed Consolidated Balance Sheets
December 31, 2019
Assets
Derivative financial instruments - long-term asset	$	1,635		$	(905	)	$	730
Total		1,635			(905	)		730

Liabilities
Derivative financial instruments - current liability		(1,944	)		—			(1,944	)
Derivative financial instruments - long-term liability		(905	)		905			—
Total		(2,849	)		905			(1,944	)
Net liability	$	(1,214	)	$	—		$	(1,214	)

The following table presents the impact of derivative financial instruments and their location within the unaudited condensed consolidated statements of operations:

	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2020			2019			2020		2019
Net settlements on matured derivatives	$	5,201		$	(729	)	$	6,984	$	(586	)
Net change in fair value of derivatives		(9,712	)		4,125			13,457		(8,216	)
Total (loss) gain on derivatives, net	$	(4,511	)	$	3,396		$	20,441	$	(8,802	)

At June 30, 2020, and December 31, 2019, our commodity derivative contracts had maturities at various dates through December 2021 and were comprised of commodity price swap and collar contracts. At June 30, 2020, we had the following oil derivatives net positions:

Period Covered	Weighted Average Fixed Price		Weighted Average Floor Price		Weighted Average Ceiling Price		Total Bbls Hedged/day		Index
Swaps - 2020	$	55.98	$	—	$	—		1,798	NYMEX-WTI
Swaps - 2021	$	55.78	$	—	$	—		672	NYMEX-WTI
Collars - 2021	$	—	$	52.00	$	58.80		672	NYMEX-WTI

At December 31, 2019, we had the following oil derivatives net positions:

Period Covered	Weighted Average Fixed Price		Weighted Average Floor Price		Weighted Average Ceiling Price		Total Bbls Hedged/day		Index
Swaps - 2020	$	55.81	$	—	$	—		1,931	NYMEX-WTI
Swaps - 2021	$	55.78	$	—	$	—		672	NYMEX-WTI
Collars - 2021	$	—	$	52.00	$	58.80		672	NYMEX-WTI