Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2019

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Summary of Derivative Instrument Positions for Future Production Periods

Below is a summary of the Company’s derivative instrument positions, as of June 30, 2019, for future production periods:

Natural Gas Derivatives:

Description	Volume (MMBtu/d)		Production Period	Weighted Average Price ($/MMBtu)
Natural Gas Swaps:
		90,000	July 2019 – December 2019	$	2.84
		15,000	July 2019 – September 2019	$	2.79
Natural Gas Collars:
Floor purchase price (put)		75,000	July 2019 – September 2019	$	2.50
Ceiling sold price (call)		75,000	July 2019 – September 2019	$	2.87
Floor purchase price (put)		65,000	October 2019 – December 2019	$	2.65
Ceiling sold price (call)		65,000	October 2019 – December 2019	$	2.96
Floor purchase price (put)		30,000	January 2020 – March 2020	$	2.72
Ceiling sold price (call)		30,000	January 2020 – March 2020	$	3.15
Floor purchase price (put)		15,000	April 2020 – June 2020	$	2.50
Ceiling sold price (call)		15,000	April 2020 – June 2020	$	2.80
Floor purchase price (put)		30,000	January 2020 – December 2020	$	2.55
Ceiling sold price (call)		30,000	January 2020 – December 2020	$	3.00
Natural Gas Three-way Collars:
Floor purchase price (put)		77,500	July 2019 – December 2019	$	2.72
Floor sold price (put)		77,500	July 2019 – December 2019	$	2.30
Ceiling sold price (call)		77,500	July 2019 – December 2019	$	3.04
Floor purchase price (put)		70,000	January 2020 – June 2020	$	2.70
Floor sold price (put)		70,000	January 2020 – June 2020	$	2.25
Ceiling sold price (call)		70,000	January 2020 – June 2020	$	2.98
Floor purchase price (put)		30,000	October 2019 – June 2020	$	2.90
Floor sold price (put)		30,000	October 2019 – June 2020	$	2.50
Ceiling sold price (call)		30,000	October 2019 – June 2020	$	3.15
Floor purchase price (put)		30,000	January 2020 – December 2020	$	2.70
Floor sold price (put)		30,000	January 2020 – December 2020	$	2.40
Ceiling sold price (call)		30,000	January 2020 – December 2020	$	3.05
Natural Gas Call/Put Options:
Call sold		40,000	July 2019 – December 2019	$	3.44
Basis Swaps:
Appalachia - Dominion		12,500	July 2019 – October 2019	$	(0.52	)
Appalachia - Dominion		12,500	April 2020 – October 2020	$	(0.52	)
Appalachia - Dominion		20,000	January 2020 – December 2020	$	(0.59	)
Appalachia - Dominion		20,000	July 2019 – March 2020	$	(0.39	)
Appalachia - Dominion		17,500	July 2019 – December 2019	$	(0.50	)

Oil Derivatives:

Description	Volume (Bbls/d)		Production Period	Weighted Average Price ($/Bbl)
Oil Swaps:
		1,500	July 2019 – December 2019	$	59.18
		1,000	January 2020 – December 2020	$	58.60
Oil Collars:
Floor purchase price (put)		1,500	July 2019 – December 2019	$	51.67
Ceiling sold price (call)		1,500	July 2019 – December 2019	$	65.92
Floor purchase price (put)		1,000	January 2020 – December 2020	$	51.50
Ceiling sold price (call)		1,000	January 2020 – December 2020	$	64.25
Floor purchase price (put)		500	July 2019 – March 2020	$	60.00
Ceiling sold price (call)		500	July 2019 – March 2020	$	67.00
Oil Three-way Collars:
Floor purchase price (put)		2,000	July 2019 – December 2019	$	50.00
Floor sold price (put)		2,000	July 2019 – December 2019	$	40.00
Ceiling sold price (call)		2,000	July 2019 – December 2019	$	60.56
Floor purchase price (put)		2,000	January 2020 – June 2020	$	62.50
Floor sold price (put)		2,000	January 2020 – June 2020	$	55.00
Ceiling sold price (call)		2,000	January 2020 – June 2020	$	74.00

NGL Derivatives:

Description	Volume (Bbls/d)		Production Period	Weighted Average Price ($/Bbl)
Propane Swaps:
		350	July 2019 – December 2019	$	39.90

Fair Value of Derivative Instruments on a Gross Basis and on a Net basis as Presented in Consolidated Balance Sheets

The following table summarizes the fair value of the Company’s derivative instruments on a gross basis and on a net basis as presented in the Condensed Consolidated Balance Sheets (in thousands). None of the derivative instruments is designated as a hedge for accounting purposes.

As of June 30, 2019	Gross Amount			Netting Adjustments(a)			Net Amount Presented in Balance Sheets			Balance Sheet Location
Assets
Commodity derivatives - current	$	23,581		$	(2,338	)		21,243		Other current assets
Commodity derivatives - noncurrent		1,935			—			1,935		Other assets
Total assets	$	25,516		$	(2,338	)	$	23,178
Liabilities
Commodity derivatives - current	$	(3,487	)	$	2,338		$	(1,149	)	Accrued liabilities
Commodity derivatives - noncurrent		(357	)		—			(357	)	Other liabilities
Total liabilities	$	(3,844	)	$	2,338		$	(1,506	)

As of December 31, 2018	Gross Amount			Netting Adjustments(a)			Net Amount Presented in Balance Sheets			Balance Sheet Location
Assets
Commodity derivatives - current	$	4,960		$	(845	)	$	4,115		Other current assets
Commodity derivatives - noncurrent		1,910			—			1,910		Other assets
Total assets	$	6,870		$	(845	)	$	6,025
Liabilities
Commodity derivatives - current	$	(845	)	$	845		$	—		Accrued liabilities
Commodity derivatives - noncurrent		(326	)		—			(326	)	Other liabilities
Total liabilities	$	(1,171	)	$	845		$	(326	)

(a) The Company has agreements in place that allow for the financial right to offset for derivative assets and derivative liabilities at settlement or in the event of a default under the agreements.

Summary of Gains and Losses on Derivative Instruments

The following table presents the Company’s reported gains and losses on derivative instruments and where such values are recorded in the Condensed Consolidated Statements of Operations for the periods presented (in thousands):

		Amount of Gain (Loss) Recognized in Income
Derivatives not designated as hedging instruments under ASC 815	Location of Gain (Loss) Recognized in Income	Three Months Ended June 30,					Six Months Ended June 30,
		2019		2018			2019		2018
Commodity derivatives	Gain (loss) on derivative instruments	$	29,738	$	(16,577	)	$	24,808	$	(20,792	)