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Commodity Derivative Financial Instruments
 3 Months Ended
Mar. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Commodity Derivatives And Financial Instruments
NOTE 4 - 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 March 31, 2020, the Partnership’s open derivative 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 the 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 March 31, 2020 and December 31, 2019. See Note 5 - 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 March 31, 2020, the Partnership had eight counterparties, all of which are rated Baa1 or better by Moody’s and are lenders under the Credit Facility.
The tables below summarize the fair values and classifications 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:
March 31, 2020
ClassificationBalance Sheet LocationGross
Fair Value		Effect of Counterparty NettingNet Carrying Value on Balance Sheet
  (in thousands)
Assets:
    
Current asset
Commodity derivative assets$96,294  $(16) $96,278  
Long-term asset
Deferred charges and other long-term assets—  —  —  
 Total assets
 $96,294  $(16) $96,278  
Liabilities:
    
Current liability
Commodity derivative liabilities$16  $(16) $—  
Long-term liability
Commodity derivative liabilities—  —  —  
Total liabilities
 $16  $(16) $—  

December 31, 2019
ClassificationBalance Sheet LocationGross
Fair Value		Effect of Counterparty NettingNet Carrying Value on Balance Sheet
  (in thousands)
Assets:
    
Current asset
Commodity derivative assets$19,028  $(4,238) $14,790  
Long-term asset
Deferred charges and other long-term assets713  (105) 608  
 Total assets
 $19,741  $(4,343) $15,398  
Liabilities:
    
Current liability
Commodity derivative liabilities$4,397  $(4,238) $159  
Long-term liability
Commodity derivative liabilities123  (105) 18  
Total liabilities
 $4,520  $(4,343) $177  
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:
 Three Months Ended
March 31,
Derivatives not designated as hedging instruments20202019
(in thousands)
Beginning fair value of commodity derivative instruments$15,221  $48,038  
Gain (loss) on oil derivative instruments77,811  (39,261) 
Gain (loss) on natural gas derivative instruments12,200  (1,922) 
Net cash paid (received) on settlements of oil derivative instruments(1,541) (4,555) 
Net cash paid (received) on settlements of natural gas derivative instruments(7,413) 2,812  
Net change in fair value of commodity derivative instruments81,057  (42,926) 
Ending fair value of commodity derivative instruments$96,278  $5,112  
The Partnership had the following open derivative contracts for oil as of March 31, 2020:
 Weighted Average Price (Per Bbl)Range (Per Bbl)
Period and Type of ContractVolume (Bbl)LowHigh
Oil Swap Contracts:    
2020    
First Quarter210,000  $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  

Weighted Average
Floor Price (Per Bbl)		Weighted Average
Ceiling Price (Per Bbl)
Period and Type of ContractVolume (Bbl)
Oil Collar Contracts:
2020
First Quarter70,000  $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 March 31, 2020:
 Weighted Average Price (Per MMBtu)Range (Per MMBtu)
Period and Type of ContractVolume (MMBtu)LowHigh
Natural Gas Swap Contracts:    
2020    
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  
The Partnership entered into the following derivative contracts for oil subsequent to March 31, 2020:
Weighted Average Price (Per Bbl)Range (Per Bbl)
Period and Type of ContractVolume (Bbl)LowHigh
Oil Swap Contracts:
2021
First Quarter480,000  $36.18  $32.64  $37.92  
Second Quarter480,000  36.18  32.64  37.92  
Third Quarter480,000  36.18  32.64  37.92  
Fourth Quarter480,000  36.18  32.64  37.92  
The Partnership entered into the following derivative contracts for natural gas subsequent to March 31, 2020:
Weighted Average Price (Per MMBtu)Range (Per MMBtu)
Period and Type of ContractVolume (MMBtu)LowHigh
Natural Gas Swap Contracts:
2021
First Quarter7,200,000  $2.60  $2.52  $2.72  
Second Quarter7,280,000  2.60  2.52  2.72  
Third Quarter7,360,000  2.60  2.52  2.72  
Fourth Quarter7,360,000  2.60  2.52  2.72