Derivative Instruments

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

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 does not anticipate nonperformance from its counterparties. Brigham Minerals continually monitors the credit ratings of its counterparties.

Concurrent with the termination of its prior revolving credit facility in July 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 and was returned to Brigham Resources upon entering into our revolving credit facility, as discussed in “Note 1.—Business and Basis of Presentation.”

Brigham Minerals no longer has oil derivative contracts in place as of December 31, 2019. Prior to December 31, 2019, we had certain oil swap contracts based on the New York Mercantile Exchange ("NYMEX") futures index.

Our derivative instruments were subject to master netting arrangements and are presented on a net basis in our consolidated and combined balance sheets. The following table summarizes the location and fair value of our derivative instruments as of December 31, 2018 (in thousands):

Derivative Instruments	Balance Sheet Classification	Gross Amount Recognized		Less Group Amount of Offset		Net Amount Recognized
		(In thousands)
As of December 31, 2018
Derivative assets:
Commodity swaps	Current derivative assets	$	1,057	$	—	$	1,057

The following table summarizes Brigham Minerals' (loss) gain on derivative instruments, net on its consolidated and combined statement of operations for the years ended December 31, 2019, 2018 and 2017 (in thousands):

	Years Ended December 31,
(In thousands)	2019			2018			2017
Realized gain (loss)	$	470		$	(754	)	$	—
Unrealized gain (loss)	(1,038		)	1,178			(121		)
(Loss) gain on derivative instruments, net	$	(568	)	$	424		$	(121	)