Risk Management and Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2021

Risk Management and Derivative Instruments

Open Commodity Positions

At December 31, 2021, the Company had the following open commodity positions:

	2022		2023
Natural Gas Derivative Contracts:
Fixed price swap contracts:
Average monthly volume (MMBtu)		695,000		—
Weighted-average fixed price	$	2.56	$	—
Collar contracts:
Two-way collars
Average monthly volume (MMBtu)		775,000		370,000
Weighted-average floor price	$	2.56	$	2.63
Weighted-average ceiling price	$	3.44	$	3.61
Crude Oil Derivative Contracts:
Fixed price swap contracts:
Average monthly volume (Bbls)		64,000		55,000
Weighted-average fixed price	$	49.56	$	57.30
Collar contracts:
Two-way collars
Average monthly volume (Bbls)		22,500		—
Weighted-average floor price	$	58.33	$	—
Weighted-average ceiling price	$	67.42	$	—
Three-way collars
Average monthly volume (Bbls)		89,000		30,000
Weighted-average ceiling price	$	55.55	$	67.15
Weighted-average floor price	$	42.92	$	55.00
Weighted-average sub-floor price	$	32.58	$	40.00

Interest Rate Swap Open Positions

	2022
Average Monthly Notional (in thousands)	$	75,000
Weighted-average fixed rate		1.281	%
Floating rate		1 Month LIBOR

Gross Fair Value of Derivative Instruments by Appropriate Balance Sheet

The following table summarizes both: (i) the gross fair value of derivative instruments by the appropriate balance sheet classification even when the derivative instruments are subject to netting arrangements and qualify for net presentation in the balance sheet and (ii) the net recorded fair value as reflected on the balance sheet at December 31, 2021 and 2020. There was no cash collateral received or pledged associated with its derivative instruments since most of the counterparties, or certain of their affiliates, to its derivative contracts are lenders under the Company’s Credit Agreement (as defined below).

				Liability				Liability
		Asset Derivatives		Derivatives		Asset Derivatives		Derivatives
		December 31,		December 31,		December 31,		December 31,
Type	Balance Sheet Location	2021		2021		2020		2020
		(In thousands)
Commodity contracts	Short-term derivative instruments	$	4,804	$	57,325	$	6,088	$	15,007
Interest rate swaps	Short-term derivative instruments		—		623		—		1,905
Gross fair value			4,804		57,948		6,088		16,912
Netting arrangements			(4,804)		(4,804)		(6,088)		(6,088)
Net recorded fair value	Short-term derivative instruments	$	—	$	53,144	$	—	$	10,824
Commodity contracts	Long-term derivative instruments	$	3,163	$	12,827	$	9,361	$	8,488
Interest rate swaps	Long-term derivative instruments		—		—		—		847
Gross fair value			3,163		12,827		9,361		9,335
Netting arrangements			(3,163)		(3,163)		(8,488)		(8,488)
Net recorded fair value	Long-term derivative instruments	$	—	$	9,664	$	873	$	847

Unrealized and Realized Gains and Losses Related to Derivative Instruments

The following table details the gains and losses related to derivative instruments for the periods indicated (in thousands):

		For the Year Ended
	Statements of	December 31,
	Operations Location	2021		2020
Commodity derivative contracts	Loss (gain) on commodity derivatives	$	142,439	$	(60,671)
Loss (gain) on interest rate derivatives	Interest expense, net		(217)		4,044