XML 31 R22.htm IDEA: XBRL DOCUMENT v3.22.2
COMMODITY DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
 6 Months Ended
Jun. 30, 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:
June 30, 2022
ClassificationBalance Sheet LocationGross
Fair Value		Effect of Counterparty NettingNet Carrying Value on Balance Sheet
  (in thousands)
Assets:
    
Current asset
Commodity derivative assets$702 $(386)$316 
Long-term asset
Deferred charges and other long-term assets2,886 (918)1,968 
 Total assets
 $3,588 $(1,304)$2,284 
Liabilities:
    
Current liability
Commodity derivative liabilities$106,466 $(386)$106,080 
Long-term liability
Commodity derivative liabilities4,340 (918)3,422 
Total liabilities
 $110,806 $(1,304)$109,502 
December 31, 2021
ClassificationBalance Sheet LocationGross
Fair Value		Effect of Counterparty NettingNet 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 liabilities2,001 — 2,001 
Total liabilities
 $53,545 $— $53,545 
Changes in Fair Value of Company's Commodity Derivative Instruments Changes in the fair values of the Partnership’s derivative instruments (both assets and liabilities) are presented on a net basis in the accompanying consolidated statements of operations and consolidated statements of cash flows and consist of the following for the periods presented:
 Three Months Ended June 30,Six Months Ended June 30,
Derivatives not designated as hedging instruments2022202120222021
(in thousands)
Beginning fair value of commodity derivative instruments$(142,321)$(43,376)$(53,545)$(20,017)
Gain (loss) on oil derivative instruments(16,275)(34,215)(65,117)(59,069)
Gain (loss) on natural gas derivative instruments(11,074)(25,265)(82,252)(28,293)
Net cash paid (received) on settlements of oil derivative instruments26,345 15,910 42,237 20,412 
Net cash paid (received) on settlements of natural gas derivative instruments36,107 1,435 51,459 1,456 
Net change in fair value of commodity derivative instruments35,103 (42,135)(53,673)(65,494)
Ending fair value of commodity derivative instruments$(107,218)$(85,511)$(107,218)$(85,511)
Summary of Open Derivative Contracts The Partnership had the following open derivative contracts for oil as of June 30, 2022:
 Weighted Average Price (Per Bbl)Range (Per Bbl)
Period and Type of ContractVolume (Bbl)LowHigh
Oil Swap Contracts:    
2022    
Second Quarter220,000 66.47 55.29 83.91 
Third Quarter660,000 66.47 55.29 83.91 
Fourth Quarter660,000 66.47 55.29 83.91 
2023
First Quarter180,000 $80.40 $78.00 $82.80 
Second Quarter90,000 $89.50 $89.50 89.50 
Third Quarter90,000 $89.50 $89.50 89.50 
Fourth Quarter90,000 $89.50 $89.50 89.50 
The Partnership had the following open derivative contracts for natural gas as of June 30, 2022:
 Weighted Average Price (Per MMBtu)Range (Per MMBtu)
Period and Type of ContractVolume (MMBtu)LowHigh
Natural Gas Swap Contracts:    
2022    
Second Quarter— $— $— $— 
Third Quarter9,000,000 3.12 2.80 4.30 
Fourth Quarter9,000,000 3.12 2.80 4.30 
2023
First Quarter4,500,000 $4.19 $3.28 $5.05 
Second Quarter3,640,000 4.16 3.28 5.05 
Third Quarter3,680,000 4.16 3.28 5.05 
Fourth Quarter3,680,000 4.16 3.28 5.05 


The Partnership entered into the following derivative contracts for natural gas subsequent to June 30, 2022:
 Weighted Average Price (Per MMBtu)Range (Per MMBtu)
Period and Type of ContractVolume (MMBtu)LowHigh
Natural Gas Swap Contracts:    
2023
First Quarter2,700,000 $5.61 $5.10 $6.00 
Second Quarter2,730,000 5.61 5.10 6.00 
Third Quarter2,760,000 5.61 5.10 6.00 
Fourth Quarter2,760,000 5.61 5.10 6.00