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Commodity Derivative Financial Instruments
 12 Months Ended
Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Commodity Derivative Financial Instruments COMMODITY DERIVATIVE FINANCIAL INSTRUMENTS
The Partnership’s ongoing operations expose it to changes in the market price for oil and natural gas. To mitigate the inherent commodity price risk associated with its operations, the Partnership uses oil and natural gas commodity derivative financial instruments. From time to time, such instruments may include variable-to-fixed-price swaps, costless collars, fixed-price contracts, and other contractual arrangements. The Partnership enters into oil and natural gas derivative contracts that contain netting arrangements with each counterparty. The Partnership does not enter into derivative instruments for speculative purposes.
As of December 31, 2019, the Partnership's open derivatives contracts consisted of fixed-price-swap contracts and costless collar contracts. A fixed-price swap contract between the Partnership and the counterparty specifies a fixed commodity price and a future settlement date. A costless collar contract between the Partnership and the counterparty specifies a floor and a ceiling commodity price and a future settlement date. The Partnership has not designated any of its contracts as fair value or cash flow hedges. Accordingly, the changes in fair value of the contracts are included in the consolidated statement of operations in the period of the change. All derivative gains and losses from the Partnership's derivative contracts have been recognized in revenue in the Partnership's accompanying consolidated statements of operations. Derivative instruments that have not yet been settled in cash are reflected as either derivative assets or liabilities in the Partnership’s accompanying consolidated balance sheets as of December 31, 2019 and 2018. See Note 6 – Fair Value Measurements for further discussion.
The Partnership's derivative contracts expose it to credit risk in the event of nonperformance by counterparties that may adversely impact the fair value of the Partnership's commodity derivative assets. While the Partnership does not require its derivative contract counterparties to post collateral, the Partnership does evaluate the credit standing of such counterparties as deemed appropriate. This evaluation includes reviewing a counterparty’s credit rating and latest financial information. As of December 31, 2019, the Partnership had nine counterparties, all of which are rated Baa1 or better by Moody’s and are lenders under the Partnership's Credit Facility.
The tables below summarize the fair value and classification of the Partnership’s derivative instruments, as well as the gross recognized derivative assets, liabilities, and amounts offset in the consolidated balance sheets as of each date: 
As of December 31, 2019
ClassificationBalance Sheet Location
Gross Fair
Value
Effect of
Counterparty Netting
Net Carrying
Value on
Balance Sheet
  (in thousands)
Assets:    
       Current assetCommodity derivative assets$19,028  $(4,238) $14,790  
       Long-term assetDeferred charges and other long-term assets713  (105) 608  
          Total assets $19,741  $(4,343) $15,398  
Liabilities:          
       Current liabilityCommodity derivative liabilities$4,397  $(4,238) $159  
       Long-term liabilityCommodity derivative liabilities123  (105) 18  
         Total liabilities $4,520  $(4,343) $177  
  
As of December 31, 2018
ClassificationBalance Sheet Location
Gross Fair
Value
Effect of
Counterparty Netting
Net Carrying
Value on
Balance Sheet
  (in thousands)
Assets:    
       Current assetCommodity derivative assets$38,746  $(776) $37,970  
       Long-term assetDeferred charges and other long-term assets11,518  (1,450) 10,068  
          Total assets $50,264  $(2,226) $48,038  
Liabilities:    
       Current liabilityCommodity derivative liabilities$776  $(776) $—  
       Long-term liabilityCommodity derivative liabilities1,450  (1,450) —  
          Total liabilities $2,226  $(2,226) $—  
 Changes in the fair values of the Partnership’s derivative instruments (both assets and liabilities) are presented on a net basis in the accompanying consolidated statements of operations and consolidated statements of cash flows and consist of the following for the periods presented:
 For the year ended December 31,
Derivatives not designated as hedging instruments201920182017
 (in thousands)
Beginning fair value of commodity derivative instruments$48,038  $(5,028) $(16,719) 
Gain (loss) on oil derivative instruments(34,728) 24,300  (5,091) 
Gain (loss) on natural gas derivative instruments29,773  (9,469) 31,993  
Net cash paid (received) on settlements of oil derivative instruments(8,536) 34,905  (10,901) 
Net cash paid (received) on settlements of natural gas derivative instruments(19,326) 3,330  (4,310) 
Net change in fair value of commodity derivative instruments(32,817) 53,066  11,691  
Ending fair value of commodity derivative instruments$15,221  $48,038  $(5,028) 
The Partnership had the following open derivative contracts for oil as of December 31, 2019:
 Volume (Bbl)Weighted Average Price (per Bbl)Range (per Bbl)
Period and Type of ContractLowHigh
Oil Swap Contracts:    
2019
Fourth quarter312,000  $58.50  $52.82  $63.75  
2020    
First quarter630,000  $57.32  $54.92  $58.65  
Second quarter630,000  57.32  54.92  58.65  
Third quarter630,000  57.32  54.92  58.65  
Fourth quarter630,000  57.32  54.92  58.65  

 Volume (Bbl)Weighted Average Floor Price (Per Bbl)Weighted Average Ceiling Price (Per Bbl)
Period and Type of Contract
Oil Collar Contracts:   
2019
Fourth quarter20,000  $65.00  $74.00  
2020         
First quarter210,000  $56.43  $67.14  
Second quarter210,000  56.43  67.14  
Third quarter210,000  56.43  67.14  
Fourth quarter210,000  56.43  67.14  

The Partnership had the following open derivative contracts for natural gas as of December 31, 2019:
 Volume (MMBtu)Weighted Average Price (per MMBtu)Range (per MMBtu)
Period and Type of ContractLowHigh
Natural Gas Swap Contracts:    
2020
First quarter10,010,000  $2.69  $2.55  $2.74  
Second quarter10,010,000  2.69  2.55  2.74  
Third quarter10,120,000  2.69  2.55  2.74  
Fourth quarter10,120,000  2.69  2.55  2.74