Risk Management and Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2022

Risk Management and Derivative Instruments

Open Commodity Positions

At June 30, 2022, 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		1,160,000
Weighted-average floor price	$	2.56	$	3.49
Weighted-average ceiling price	$	3.44	$	5.92
Crude Oil Derivative Contracts:
Fixed price swap contracts:
Average monthly volume (Bbls)		57,000		55,000
Weighted-average fixed price	$	48.27	$	57.30
Collar contracts:
Two-way collars
Average monthly volume (Bbls)		15,000		—
Weighted-average floor price	$	60.00	$	—
Weighted-average ceiling price	$	71.00	$	—
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

At June 30, 2022, the Company had the following interest rate swap open positions:

	Remaining
	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 June 30, 2022 and December 31, 2021. There was no cash collateral received or pledged associated with the Company’s derivative instruments since most of its counterparties, or certain of its affiliates, to its derivative contracts are lenders under its Revolving Credit Facility.

		Asset		Liability		Asset		Liability
		Derivatives		Derivatives		Derivatives		Derivatives
		June 30,		June 30,		December 31,		December 31,
Type	Balance Sheet Location	2022		2022		2021		2021
		(In thousands)
Commodity contracts	Short-term derivative instruments	$	9,708	$	89,669	$	4,804	$	57,325
Interest rate swaps	Short-term derivative instruments		527		—		—		623
Gross fair value			10,235		89,669		4,804		57,948
Netting arrangements			(9,708)		(9,708)		(4,804)		(4,804)
Net recorded fair value	Short-term derivative instruments	$	527	$	79,961	$	—	$	53,144
Commodity contracts	Long-term derivative instruments	$	3,573	$	18,232	$	3,163	$	12,827
Interest rate swaps	Long-term derivative instruments		—		—		—		—
Gross fair value			3,573		18,232		3,163		12,827
Netting arrangements			(3,573)		(3,573)		(3,163)		(3,163)
Net recorded fair value	Long-term derivative instruments	$	—	$	14,659	$	—	$	9,664

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 Three Months Ended				For the Six Months Ended
	Statements of	June 30,				June 30,
	Operations Location	2022		2021		2022		2021
Commodity derivative contracts	Loss (gain) on commodity derivatives	$	18,571	$	63,898	$	111,975	$	98,486
(Gain) loss on interest rate derivatives	Interest expense, net		(286)		18		(843)		(44)