Derivative Instruments

Brigham Minerals periodically uses commodity derivative instruments to reduce its exposure to commodity price volatility for a portion of its forecasted crude oil and natural gas sales and thereby achieve a more predictable level of cash flows. None of the derivative instruments are designated as hedges. Brigham Minerals does not enter into derivative instruments for speculative or trading purposes.

Because the counterparties to Brigham Minerals derivative instruments have investment grade credit ratings, Brigham Minerals believes it does not have significant credit risk and accordingly does not currently require its counterparties to post collateral to support the net asset positions of its derivative instruments as of June 30, 2019. Although Brigham Minerals does not currently anticipate nonperformance from its counterparties, it continually monitors the credit ratings of its counterparties.

Concurrent with the termination of its prior revolving credit facility in July of 2018, Brigham Resources posted cash collateral of $1.4 million for its existing WTI fixed price swap contracts. The cash collateral was $1.6 million in May 2019 prior to the termination of the Owl Rock credit facility. The cash collateral was returned to Brigham Resources upon entering into the new revolving credit facility, as discussed in "Note 1 - Business and Basis of Presentation."

As of June 30, 2019, Brigham Minerals had certain WTI fixed price swap contracts based on the NYMEX futures index. The fair values, notional quantities and weighted-average swap prices of these contracts as of June 30, 2019, are summarized in the table below.



Description & Production Period	Volume	Weighted Average Swap Price		Fair Value Asset/(Liability)
	(Bbl)	($/Bbl)		(In thousands)
Crude Oil Swaps:
July 2019 — September 2019	15,000	$	63.61	$	77
October 2019 — December 2019	15,000	$	63.61	$	85
Total	30,000	$	63.61	$	162

Brigham Minerals' derivative instruments are subject to master netting arrangements and are presented on a net basis in its condensed consolidated and combined balance sheets. The following table summarizes the location and fair value of its derivative instruments as of June 30, 2019 and December 31, 2018 (in thousands):



Derivative Instruments	Balance Sheet Classification	Gross Amount Recognized		Less Group Amount of Offset		Net Amount Recognized
As of June 30, 2019
Derivative assets:
Commodity swaps	Current derivative assets	$	162	$	—	$	162
As of December 31, 2018
Derivative assets:
Commodity swaps	Current derivative assets	$	1,057	$	—	$	1,057

The following table summarizes Brigham Minerals' gain (loss) on derivative instruments, net on its condensed consolidated and combined statement of operations for the three and six months ended June 30, 2019 and 2018 (in thousands):



	Three Months Ended June 30,					Six Months Ended June 30,
(In thousands)	2019		2018			2019			2018
Realized gain (loss)	$	40	$	(247	)	$	238		$	(365	)
Unrealized gain (loss)	33		(308		)	(850		)	(549		)
Combined - realized/unrealized gain (loss)	$	73	$	(555	)	$	(612	)	$	(914	)