COMMODITY DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Fair Value and Classification of Derivative Instruments

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, 2022
Classification	Balance Sheet Location	Gross Fair Value		Effect of Counterparty Netting		Net Carrying Value on Balance Sheet
		(in thousands)
Assets:
Current asset	Commodity derivative assets	$	—	$	—	$	—
Long-term asset	Deferred charges and other long-term assets	—		—		—
Total assets		$	—	$	—	$	—
Liabilities:
Current liability	Commodity derivative liabilities	$	138,028	$	—	$	138,028
Long-term liability	Commodity derivative liabilities	4,293		—		4,293
Total liabilities		$	142,321	$	—	$	142,321

		December 31, 2021
Classification	Balance Sheet Location	Gross Fair Value		Effect of Counterparty Netting		Net Carrying Value on Balance Sheet
		(in thousands)
Assets:
Current asset	Commodity derivative assets	$	—	$	—	$	—
Long-term asset	Deferred charges and other long-term assets	—		—		—
Total assets		$	—	$	—	$	—
Liabilities:
Current liability	Commodity derivative liabilities	$	51,544	$	—	$	51,544
Long-term liability	Commodity derivative liabilities	2,001		—		2,001
Total liabilities		$	53,545	$	—	$	53,545

Changes in Fair Value of Company's Commodity Derivative Instruments

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 instruments	2022		2021
	(in thousands)
Beginning fair value of commodity derivative instruments	$	(53,545)	$	(20,017)
Gain (loss) on oil derivative instruments	(48,842)		(24,854)
Gain (loss) on natural gas derivative instruments	(71,178)		(3,028)
Net cash paid (received) on settlements of oil derivative instruments	15,892		4,502
Net cash paid (received) on settlements of natural gas derivative instruments	15,352		21
Net change in fair value of commodity derivative instruments	(88,776)		(23,359)
Ending fair value of commodity derivative instruments	$	(142,321)	$	(43,376)

Summary of Open Derivative Contracts

The Partnership had the following open derivative contracts for oil as of March 31, 2022:

		Weighted Average Price (Per Bbl)		Range (Per Bbl)
Period and Type of Contract	Volume (Bbl)			Low		High
Oil Swap Contracts:
2022
First Quarter	220,000	$	66.47	$	55.29	$	83.91
Second Quarter	660,000	66.47		55.29		83.91
Third Quarter	660,000	66.47		55.29		83.91
Fourth Quarter	660,000	66.47		55.29		83.91
2023
First Quarter	180,000	$	80.40	$	78.00	$	82.80

The Partnership had the following open derivative contracts for natural gas as of March 31, 2022:

		Weighted Average Price (Per MMBtu)		Range (Per MMBtu)
Period and Type of Contract	Volume (MMBtu)			Low		High
Natural Gas Swap Contracts:
2022
Second Quarter	8,910,000	$	3.12	$	2.80	$	4.30
Third Quarter	9,000,000	3.12		2.80		4.30
Fourth Quarter	9,000,000	3.12		2.80		4.30
2023
First Quarter	2,700,000	$	3.62	$	3.28	$	4.30
Second Quarter	1,820,000	3.28		3.28		3.29
Third Quarter	1,840,000	3.28		3.28		3.29
Fourth Quarter	1,840,000	3.28		3.28		3.29

The Partnership entered into the following derivative contracts for natural gas subsequent to March 31, 2022:

		Weighted Average Price (Per MMBtu)		Range (Per MMBtu)
Period and Type of Contract	Volume (MMBtu)			Low		High
Natural Gas Swap Contracts:
2023
First Quarter	1,800,000	$	5.04	$	5.03	$	5.05
Second Quarter	1,820,000	5.04		5.03		5.05
Third Quarter	1,840,000	5.04		5.03		5.05
Fourth Quarter	1,840,000	5.04		5.03		5.05