Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2022

Financial Instruments [Abstract]

Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments

The following table presents the carrying amounts, net of discount and deferred financing costs, and estimated fair values of the Company’s debt instruments (in thousands):

	June 30, 2022				December 31, 2021
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
12.00% Second-Priority Senior Secured Notes –   due January 2026	$	594,549	$	679,452	$	588,838	$	685,945
7.50% Senior Notes – due May 2022	$	—	$	—	$	6,060	$	6,145
Bank Credit Facility – matures November 2024	$	193,919	$	200,000	$	367,829	$	375,000

Schedule of Impact that Derivatives not Qualifying as Hedging Instruments in Condensed Consolidated Statements of Operations

The following table presents the impact that derivatives, not designated as hedging instruments, had on its Condensed Consolidated Statements of Operations (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Net cash paid on settled derivative instruments	$	(160,235	)	$	(69,237	)	$	(287,321	)	$	(117,618	)
Unrealized gain (loss)		96,141			(117,380	)		(57,992	)		(206,507	)
Price risk management activities expense	$	(64,094	)	$	(186,617	)	$	(345,313	)	$	(324,125	)

Schedule of Contracted Volumes and Weighted Average Prices and will Receive Under the Terms of Derivative Contracts

The following table reflects the contracted volumes and weighted average prices under the terms of the Company's derivative contracts as of June 30, 2022:

Swap Contracts
Production Period	Settlement Index	Average Daily Volumes		Weighted Average Swap Price
Crude oil:		(Bbls)		(per Bbl)
July 2022 – December 2022	NYMEX WTI CMA		18,663	$	53.68
January 2023 – December 2023	NYMEX WTI CMA		14,693	$	72.20
January 2024 – June 2024	NYMEX WTI CMA		5,000	$	76.53
Natural gas:		(MMBtu)		(per MMBtu)
July 2022 – December 2022	NYMEX Henry Hub		32,500	$	2.67
January 2023 – December 2023	NYMEX Henry Hub		26,395	$	3.76
January 2024 – June 2024	NYMEX Henry Hub		10,000	$	3.25

Summary of Additional Information Related to Financial Instruments Measured at Fair Value on Recurring Basis

The following tables provide additional information related to financial instruments measured at fair value on a recurring basis (in thousands):

	June 30, 2022
	Level 1		Level 2			Level 3		Total
Assets:
Oil and natural gas swaps	$	—	$	6,737		$	—	$	6,737
Liabilities:
Oil and natural gas swaps		—		(261,456	)		—		(261,456	)
Total net liability	$	—	$	(254,719	)	$	—	$	(254,719	)

	December 31, 2021
	Level 1		Level 2			Level 3		Total
Assets:
Oil and natural gas swaps	$	—	$	3,737		$	—	$	3,737
Liabilities:
Oil and natural gas swaps		—		(200,464	)		—		(200,464	)
Total net liability	$	—	$	(196,727	)	$	—	$	(196,727	)

Schedule of Fair Value of Derivative Financial Instruments

The following table presents the fair value of derivative financial instruments as well as the potential effect of netting arrangements on the Company's recognized derivative asset and liability amounts (in thousands):

	June 30, 2022				December 31, 2021
	Assets		Liabilities		Assets		Liabilities
Oil and natural gas derivatives:
Current	$	3,686	$	239,022	$	967	$	186,526
Non-current		3,051		22,434		2,770		13,938
Total gross amounts presented on balance sheet		6,737		261,456		3,737		200,464
Less: Gross amounts not offset on the balance sheet		6,737		6,737		3,737		3,737
Net amounts	$	—	$	254,719	$	—	$	196,727