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Derivative Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Outstanding Oil and Gas Derivative Contracts and Weighted Average Oil and Gas Prices
The following table sets forth the volumes associated with the Company's outstanding oil derivative contracts expiring during the periods indicated and the weighted average oil prices for those contracts: 
Crude Options
Three Months Ending December 31, 2016
 
Year Ending
December 31, 2017
 
Year Ending
December 31, 2018
Purchased:
 
 
 
 
 
Puts (1)
 
 
 
 
 
Notional (MBbl)
2,160

 
7,248

 
900

Weighted average strike price
$
45.03

 
$
49.28

 
$
52.50

Sold:
 
 
 
 
 
Puts (1)
 
 
 
 
 
Notional (MBbl)
(2,160
)
 
(7,248
)
 
(900
)
Weighted average strike price
$
32.78

 
$
37.62

 
$
40.00

Basis swap contracts: (2)
 
 
 
 
 
Midland-Cushing index swap volume (MBbl)
758

 
4,290

 
—

Price differential ($/Bbl)
$
(0.87
)
 
$
(1.03
)
 
$
—

 
(1) 
Excludes 9,114 notional MBbls with a fair value of $73.8 million related to amounts recognized under master netting agreements with derivative counterparties.
(2) 
Represents swaps that fix the basis differentials between the index prices at which the Company sells its oil produced in the Permian Basin and the Cushing WTI price.

The following table sets forth the volumes associated with the Company's outstanding natural gas derivative contracts expiring during the periods indicated and the weighted average natural gas prices for those contracts:
Natural Gas Three-Way Collars
 
Year Ending
December 31, 2017
Purchased:
 
 
Puts
 
 
Notional (MMbtu)
 
5,700

Weighted average strike price
 
$
2.75

Sold:
 
 
Puts
 
 
Notional (MMbtu)
 
(5,700
)
Weighted average strike price
 
$
2.36

Calls
 
 
Notional (MMbtu)
 
(5,700
)
Weighted Average Strike Price
 
$
4.02
Schedule of Netting Offsets of Derivative Asset and Liability Positions
The following table presents the Company’s net exposure from its offsetting derivative asset and liability positions, as well as cash collateral on deposit with the brokers as of the reporting dates indicated (in thousands):
 
Gross Amount
 
Netting
Adjustments
 
Net
Exposure
September 30, 2016
 
 
 
 
 
Derivative assets with right of offset or
   master netting agreements
$
127,322

 
$
(73,768
)
 
$
53,554

Derivative liabilities with right of offset or
   master netting agreements
(107,355
)
 
73,768

 
(33,587
)
 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
Derivative assets with right of offset or
   master netting agreements
407,052

 
(297,951
)
 
109,101

Derivative liabilities with right of offset or
   master netting agreements
(347,611
)
 
297,951

 
(49,660
)