Derivatives (Tables)

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Components of Gain (Loss) on Derivative Activity

The components of the unrealized gain on designated cash flow hedge related to changes in the fair value of our interest rate swaps are as follows (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Change in fair value of interest rate swaps	$	2.2	$	—	$	8.1	$	0.1
Tax expense	(0.5)		—		(1.9)		—
Unrealized gain on designated cash flow hedge	$	1.7	$	—	$	6.2	$	0.1

Interest expense (income) is recognized from accumulated other comprehensive income from the monthly settlement of our interest rate swaps and was included in our consolidated statements of operations as follows (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Interest expense, net of interest income	$	(1.4)	$	—	$	(3.0)	$	0.1

The components of gain (loss) on derivative activity in the consolidated statements of operations related to commodity derivatives are as follows (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Change in fair value of derivatives	$	(22.9)	$	18.2	$	(19.0)	$	38.4
Realized gain (loss) on derivatives	0.9		2.3		20.2		(44.6)
Gain (loss) on derivative activity	$	(22.0)	$	20.5	$	1.2	$	(6.2)

Fair Value of Derivative Assets and Liabilities Related to Commodity Swaps

The fair value of derivative assets and liabilities related to the interest rate swaps are as follows (in millions):

	September 30, 2023		December 31, 2022
Fair value of derivative assets—current	$	5.7	$	—
Fair value of derivative assets—long-term	2.4		—
Net fair value of interest rate swaps	$	8.1	$	—

The fair value of derivative assets and liabilities related to commodity derivatives are as follows (in millions):

	September 30, 2023		December 31, 2022
Fair value of derivative assets—current	$	62.3	$	68.4
Fair value of derivative assets—long-term	11.4		2.9
Fair value of derivative liabilities—current	(54.8)		(42.9)
Fair value of derivative liabilities—long-term	(12.2)		(2.7)
Net fair value of commodity derivatives	$	6.7	$	25.7

Notional Amount and Fair Value of Derivative Instruments

Set forth below are the summarized notional volumes and fair values of all instruments related to commodity derivatives that we held for price risk management purposes and the related physical offsets at September 30, 2023 (in millions, except volumes). The remaining term of the contracts extend no later than January 2028.

Commodity	Instruments	Unit	Volume	Net Fair Value
NGL (short contracts)	Swaps	MMgals	(114.5)	$	3.0
NGL (long contracts)	Swaps	MMgals	71.2	(5.8)
Natural gas (short contracts)	Swaps and futures	Bbtu	(124.6)	28.8
Natural gas (long contracts)	Swaps and futures	Bbtu	111.8	(18.7)
Crude and condensate (short contracts)	Swaps and futures	MMbbls	(8.5)	(8.5)
Crude and condensate (long contracts)	Swaps and futures	MMbbls	0.7	7.9
Total fair value of commodity derivatives				$	6.7