Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2020

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 September 30, 2020, for future production periods:

Natural Gas Derivatives:

Description	Volume (MMBtu/d)		Production Period	Weighted Average Price ($/MMBtu)
Natural Gas Swaps:
		130,000	October 2020 – December 2020	$	2.42
		145,000	October 2020 – March 2021	$	2.58
		50,000	January 2021 – March 2022	$	2.51
		25,000	April 2021 – March 2022	$	2.47
Natural Gas Collars:
Floor purchase price (put)		25,000	January 2021 – December 2021	$	2.15
Ceiling sold price (call)		25,000	January 2021 – December 2021	$	3.03
Floor purchase price (put)		30,000	April 2021 – March 2022	$	2.40
Ceiling sold price (call)		30,000	April 2021 – March 2022	$	3.05
Floor purchase price (put)		15,000	August 2021 – December 2021	$	2.55
Ceiling sold price (call)		15,000	August 2021 – December 2021	$	3.13
Floor purchase price (put)		15,000	September 2021 – November 2021	$	2.52
Ceiling sold price (call)		15,000	September 2021 – November 2021	$	3.12
Floor purchase price (put)		5,000	August 2021	$	2.50
Ceiling sold price (call)		5,000	August 2021	$	3.05
Floor purchase price (put)		10,000	September 2021	$	2.50
Ceiling sold price (call)		10,000	September 2021	$	3.03
Natural Gas Three-way Collars:
Floor purchase price (put)		80,000	October 2020 – December 2020	$	2.60
Floor sold price (put)		80,000	October 2020 – December 2020	$	1.90
Ceiling sold price (call)		80,000	October 2020 – December 2020	$	2.94
Floor purchase price (put)		45,000	January 2021 – December 2021	$	2.55
Floor sold price (put)		45,000	January 2021 – December 2021	$	2.25
Ceiling sold price (call)		45,000	January 2021 – December 2021	$	2.81
Floor purchase price (put)		20,000	April 2021 – March 2022	$	2.62
Floor sold price (put)		20,000	April 2021 – March 2022	$	2.20
Ceiling sold price (call)		20,000	April 2021 – March 2022	$	3.10
Natural Gas Call/Put Options:
Floor sold price (put)		50,000	October 2020 – December 2020	$	2.30
Swaption sold price (call)		50,000	January 2021 – December 2021	$	2.75
Swaption sold price (call)		50,000	January 2022 – December 2022	$	3.00
Ceiling sold price (call)		50,000	January 2022 – December 2022	$	3.00
Floor sold price (put)		50,000	January 2021 – March 2022	$	2.00
Ceiling sold price (call)		80,000	January 2023 – December 2023	$	3.00
Basis Swaps:
Appalachia - Dominion		42,500	October 2020	$	(0.51	)
Appalachia - Dominion		20,000	October 2020 – December 2020	$	(0.59	)

Oil Derivatives:

Description	Volume (Bbls/d)		Production Period	Weighted Average Price ($/Bbl)
Oil Swaps:
		2,500	October 2020 – December 2020	$	57.41
		250	October 2020 – March 2021	$	53.20
		250	January 2021 – March 2021	$	53.00
		100	January 2021	$	43.60
Oil Collars:
Floor purchase price (put)		1,000	October 2020 – December 2020	$	51.00
Ceiling sold price (call)		1,000	October 2020 – December 2020	$	62.00
Floor purchase price (put)		500	January 2021 – December 2021	$	37.50
Ceiling sold price (call)		500	January 2021 – December 2021	$	45.50
Floor purchase price (put)		300	April 2021	$	40.00
Ceiling sold price (call)		300	April 2021	$	47.25
Floor purchase price (put)		200	May 2021	$	40.00
Ceiling sold price (call)		200	May 2021	$	47.55
Floor purchase price (put)		100	June 2021	$	40.00
Ceiling sold price (call)		100	June 2021	$	47.75
Oil Three-way Collars:
Floor purchase price (put)		500	January 2021 – December 2021	$	31.25
Floor sold price (put)		500	January 2021 – December 2021	$	22.50
Ceiling sold price (call)		500	January 2021 – December 2021	$	45.00
Oil Call/Put Options:
Floor sold price (put)		500	October 2020 – December 2020	$	45.00
Swaption sold price (call)		500	January 2021 – December 2021	$	42.50

NGL Derivatives:

Description	Volume (Bbls/d)		Production Period	Weighted Average Price ($/Bbl)
Propane Swaps:
		2,000	October 2020 – December 2020	$	20.94
		1,000	January 2021 – December 2021	$	18.87

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 September 30, 2020	Gross Amount			Netting Adjustments(a)			Net Amount Presented in Balance Sheets			Balance Sheet Location
Assets
Commodity derivatives - current	$	7,423		$	(4,213	)		3,210		Other current assets
Total assets	$	7,423		$	(4,213	)	$	3,210
Liabilities
Commodity derivatives - current	$	(27,338	)	$	4,213		$	(23,125	)	Accrued liabilities
Interest-rate swap - current		(103	)		—			(103	)	Accrued liabilities
Commodity derivatives - noncurrent		(27,269	)		—			(27,269	)	Other liabilities
Interest-rate swap - noncurrent		(404	)		—			(404	)	Other liabilities
Total liabilities	$	(55,114	)	$	4,213		$	(50,901	)

As of December 31, 2019	Gross Amount			Netting Adjustments(a)			Net Amount Presented in Balance Sheets			Balance Sheet Location
Assets
Commodity derivatives - current	$	33,762		$	(3,719	)	$	30,043		Other current assets
Commodity derivatives - noncurrent		833			(45	)		788		Other assets
Total assets	$	34,595		$	(3,764	)	$	30,831
Liabilities
Commodity derivatives - current	$	(5,081	)	$	3,719		$	(1,362	)	Accrued liabilities
Commodity derivatives - noncurrent		(2,397	)		45			(2,352	)	Other liabilities
Total liabilities	$	(7,478	)	$	3,764		$	(3,714	)

(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 and Comprehensive Income (Loss) 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 September 30,					Nine Months Ended September 30,
		2020			2019		2020			2019
Commodity derivatives	Gain (loss) on derivative instruments	$	(40,603	)	$	15,812	$	(10,861	)	$	40,620
Interest-rate swap	Gain (loss) on derivative instruments		68			—		(468	)		—
Total		$	(40,535	)	$	15,812	$	(11,329	)	$	40,620