Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2020

Financial Instruments [Abstract]

Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments (in thousands):

	June 30, 2020				December 31, 2019
	Carrying Amount		Fair Value		Carrying Amount			Fair Value
11.00% Second-Priority Senior Secured Notes – due    April 2022(1)	$	346,642	$	329,680	$	383,871		$	401,128
7.50% Senior Notes – due May 2022	$	6,060	$	4,236	$	6,060		$	5,030
Bank Credit Facility – matures May 2022(1)	$	644,339	$	650,000	$	343,050		$	350,000
Oil and Natural Gas Derivatives	$	40,442	$	40,442	$	(11,594	)	$	(11,594	)

^{(1) The carrying amounts are net of discount and deferred financing costs.}

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 qualifying as hedging instruments, had on its condensed consolidated statements of operations (in thousands): 

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020		2019
Net cash received (paid) on settled derivative instruments	$	86,039		$	(9,543	)	$	122,499	$	(12,562	)
Unrealized gain (loss)		(154,721	)		39,533			52,036		(67,027	)
Price risk management activities income (expense)	$	(68,682	)	$	29,990		$	174,535	$	(79,589	)

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 the Company will receive under the terms of its derivative contracts as of June 30, 2020:

Production Period	Instrument Type	Average Daily Volumes		Weighted Average Swap Price		Weighted Average Put Price		Weighted Average Call Price
Crude Oil – WTI:		(Bbls)		(per Bbl)		(per Bbl)		(per Bbl)
July 2020 – December 2020	Swap		30,674	$	44.45	$	—	$	—
July 2020 – December 2020	Collar		5,000	$	—	$	50.00	$	57.09
January 2021 – December 2021	Swap		7,230	$	42.37	$	—	$	—
January 2021 – December 2021	Collar		1,000	$	—	$	30.00	$	40.00
Crude Oil – LLS:		(Bbls)		(per Bbl)		(per Bbl)		(per Bbl)
January 2021 – December 2021	Swap		3,000	$	38.83	$	—	$	—
Natural Gas – NYMEX Henry Hub:		(MMBtu)		(per MMBtu)		(per MMBtu)		(per MMBtu)
July 2020 – December 2020	Swaps		55,946	$	2.27	$	—	$	—
January 2021 – December 2021	Swaps		45,000	$	2.46	$	—	$	—
January 2021 – December 2021	Collar		5,000	$	—	$	2.50	$	3.10
January 2022 – December 2022	Swaps		10,000	$	2.41	$	—	$	—

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, 2020
	Level 1		Level 2			Level 3		Total
Assets:
Oil and natural gas swaps and costless collars	$	—	$	74,075		$	—	$	74,075
Liabilities:
Oil and natural gas swaps and costless collars		—		(33,633	)		—		(33,633	)
Total net asset	$	—	$	40,442		$	—	$	40,442

	December 31, 2019
	Level 1		Level 2			Level 3		Total
Assets:
Oil and natural gas swaps and costless collars	$	—	$	8,393		$	—	$	8,393
Liabilities:
Oil and natural gas swaps and costless collars		—		(19,987	)		—		(19,987	)
Total net liability	$	—	$	(11,594	)	$	—	$	(11,594	)

Schedule of Fair Value of Derivative Financial Instruments

The following table presents the fair value of derivative financial instruments at June 30, 2020 and December 31, 2019 (in thousands): 

	June 30, 2020				December 31, 2019
	Assets		Liabilities		Assets		Liabilities
Oil and natural gas derivatives:
Current	$	72,666	$	26,615	$	8,393	$	19,476
Non-current		1,409		7,018		—		511
Total	$	74,075	$	33,633	$	8,393	$	19,987