XML 44 R33.htm IDEA: XBRL DOCUMENT v3.21.2
Derivative Activities (Tables)
 6 Months Ended
Jun. 30, 2021
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Derivative Volumes Hedged and Average Hedge Prices The following table sets forth our commodity-based derivative

volumes by year as of June 30, 2021, excluding our basis and freight swaps and divestiture contingent consideration which are discussed separately below:

 

Period

 

Contract Type

 

Volume Hedged

 

Weighted Average Hedge Price

 

 

 

 

 

 

Swap

 

Sold Put

 

Floor

 

Ceiling

Natural Gas (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

Swaps

 

575,000 Mmbtu/day

 

$

2.78

 

 

 

 

 

 

 

 

2021

 

Collars

 

293,696 Mmbtu/day

 

 

 

 

 

 

$

2.65

 

$

3.16

2021

 

Three-way Collars

 

309,728 Mmbtu/day

 

 

 

$

2.14

 

$

2.47

 

$

2.84

2022

 

Swaps

 

190,000 Mmbtu/day

 

$

2.82

 

 

 

 

 

 

 

 

2022

 

Collars

 

40,000 Mmbtu/day

 

 

 

 

 

 

$

2.90

 

$

3.29

2022

 

Three-way Collars

 

200,000 Mmbtu/day

 

 

 

$

2.20

 

$

2.72

 

$

3.35

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Crude Oil (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

Swaps

 

7,166 bbls/day

 

$

56.28

 

 

 

 

 

 

 

 

2022

 

Swaps

 

4,560 bbls/day

 

$

60.39

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NGLs (C3-Propane)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

Swaps

 

6,000 bbls/day

 

$

0.90/gallon

 

 

 

 

 

 

 

 

July – September 2021

 

Collars

 

5,000 bbls/day

 

 

 

 

 

 

$

0.95/gallon

 

$

1.05/gallon

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NGLs (NC4-Normal Butane)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

Swaps

 

2,000 bbls/day

 

$

1.05/gallon

 

 

 

 

 

 

 

 

2021

 

Collars

 

2,500 bbls/day

 

 

 

 

 

 

$

0.94/gallon

 

$

1.08/gallon

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NGLs (C5-Natural Gasoline)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

Swaps

 

3,000 bbls/day

 

$

1.28/gallon

 

 

 

 

 

 

 

 

2021

 

Collars

 

2,000 bbls/day

 

 

 

 

 

 

$

1.34/gallon

 

$

1.55/gallon

2022

 

Swaps

 

1,000 bbls/day

 

$

1.50/gallon

 

 

 

 

 

 

 

 

2022

 

Collars

 

1,000 bbls/day

 

 

 

 

 

 

$

1.40/gallon

 

$

1.60/gallon

(1) We also sold natural gas call swaptions of 180,000 Mmbtu/day for 2022 at a weighted average price of $2.86. In addition, we sold oil call swaptions of 1,000 bbls per day for 2022 at a weighted average price of $54.00.
Combined Fair Value of Derivatives, by Consolidated Balance Sheets The tables below provide additional information relating to our master netting arrangements with our derivative counterparties (in thousands):

 

 

 

 

June 30, 2021

 

 

 

 

Gross
Amounts of
Recognized
Assets

 

 

Gross
Amounts
Offset in the
Balance Sheet

 

 

Net Amounts
of Assets Presented
in the
Balance Sheet

 

Derivative assets:

 

 

 

 

 

 

 

 

 

 

Natural gas

–swaps

 

$

7,453

 

 

$

(7,856

)

 

$

(403

)

 

–collars

 

 

114

 

 

 

(114

)

 

 

—

 

 

–three-way collars

 

 

12

 

 

 

(12

)

 

 

—

 

 

–basis swaps

 

 

28,810

 

 

 

(15,453

)

 

 

13,357

 

Crude oil

–swaps

 

 

33

 

 

 

(472

)

 

 

(439

)

NGLs

–C3 propane spread swaps

 

 

6,807

 

 

 

(6,807

)

 

 

—

 

 

–C3 propane collars

 

 

—

 

 

 

(219

)

 

 

(219

)

 

–NC4 butane collars

 

 

—

 

 

 

(944

)

 

 

(944

)

 

−C5 natural gasoline swaps

 

 

—

 

 

 

(439

)

 

 

(439

)

 

−C5 natural gasoline collars

 

 

—

 

 

 

(962

)

 

 

(962

)

Freight

−swaps

 

 

57

 

 

 

(10

)

 

 

47

 

Divestiture contingent consideration

 

 

37,350

 

 

 

—

 

 

 

37,350

 

 

 

 

$

80,636

 

 

$

(33,288

)

 

$

47,348

 

 

 

 

 

 

June 30, 2021

 

 

 

 

Gross
Amounts of
Recognized
(Liabilities)

 

 

Gross
Amounts
Offset in the
Balance Sheet

 

 

Net Amounts
of (Liabilities) Presented
in the
Balance Sheet

 

Derivative (liabilities):

 

 

 

 

 

 

 

 

 

 

Natural gas

–swaps

 

$

(122,709

)

 

$

7,856

 

 

$

(114,853

)

 

–swaptions

 

 

(22,135

)

 

 

—

 

 

 

(22,135

)

 

–collars

 

 

(31,242

)

 

 

114

 

 

 

(31,128

)

 

–three-way collars

 

 

(62,594

)

 

 

12

 

 

 

(62,582

)

 

–basis swaps

 

 

(3,123

)

 

 

15,453

 

 

 

12,330

 

Crude oil

–swaps

 

 

(28,323

)

 

 

472

 

 

 

(27,851

)

 

–swaptions

 

 

(4,279

)

 

 

—

 

 

 

(4,279

)

NGLs

–C3 propane spread swaps

 

 

(6,431

)

 

 

6,807

 

 

 

376

 

 

–C3 propane swaps

 

 

(8,490

)

 

 

—

 

 

 

(8,490

)

 

–C3 collars

 

 

(1,092

)

 

 

219

 

 

 

(873

)

 

–NC4 butane swaps

 

 

(2,744

)

 

 

—

 

 

 

(2,744

)

 

–NC4 butane collars

 

 

(3,413

)

 

 

944

 

 

 

(2,469

)

 

–C5 natural gasoline swaps

 

 

(7,028

)

 

 

439

 

 

 

(6,589

)

 

–C5 natural gasoline collars

 

 

(1,309

)

 

 

962

 

 

 

(347

)

Freight

–swaps

 

 

(20

)

 

 

10

 

 

 

(10

)

 

 

 

$

(304,932

)

 

$

33,288

 

 

$

(271,644

)

 

 

 

 

 

 

 

December 31, 2020

 

 

 

 

Gross
Amounts of
Recognized
Assets

 

 

Gross Amounts
Offset in the
Balance Sheet

 

 

Net Amounts of
Assets Presented in the
Balance Sheet

 

Derivative assets:

 

 

 

 

 

 

 

 

 

 

Natural gas

–swaps

 

$

33,559

 

 

$

(16,821

)

 

$

16,738

 

 

–collars

 

 

7,016

 

 

 

(2,329

)

 

 

4,687

 

 

–three-way collars

 

 

535

 

 

 

(6,139

)

 

 

(5,604

)

 

–basis swaps

 

 

7,894

 

 

 

(3,502

)

 

 

4,392

 

Crude oil

–swaps

 

 

2,465

 

 

 

(829

)

 

 

1,636

 

NGLs

–C3 propane spread swaps

 

 

4,863

 

 

 

(4,863

)

 

 

—

 

 

–C3 propane collars

 

 

—

 

 

 

(107

)

 

 

(107

)

Freight

–swaps

 

 

2,310

 

 

 

—

 

 

 

2,310

 

Divestiture contingent consideration

 

 

15,960

 

 

 

—

 

 

 

15,960

 

 

 

 

$

74,602

 

 

$

(34,590

)

 

$

40,012

 

 

 

 

 

 

December 31, 2020

 

 

 

 

Gross
Amounts of
Recognized
(Liabilities)

 

 

Gross Amounts
Offset in the
Balance Sheet

 

 

Net Amounts of
(Liabilities)
Presented in the
Balance Sheet

 

Derivative (liabilities):

 

 

 

 

 

 

 

 

 

 

Natural gas

–swaps

 

$

(10,120

)

 

$

16,821

 

 

$

6,701

 

 

–swaptions

 

 

(9,803

)

 

 

—

 

 

 

(9,803

)

 

–collars

 

 

—

 

 

 

2,329

 

 

 

2,329

 

 

–three-way collars

 

 

(18,353

)

 

 

6,139

 

 

 

(12,214

)

 

–basis swaps

 

 

(4,197

)

 

 

3,502

 

 

 

(695

)

Crude oil

–swaps

 

 

(5,471

)

 

 

829

 

 

 

(4,642

)

NGLs

–C3 propane spread swaps

 

 

(4,069

)

 

 

4,863

 

 

 

794

 

 

–C3 propane swaps

 

 

(8,243

)

 

 

—

 

 

 

(8,243

)

 

–C3 propane collars

 

 

(3,086

)

 

 

107

 

 

 

(2,979

)

 

–C5 natural gasoline swaps

 

 

(4,897

)

 

 

—

 

 

 

(4,897

)

 

–C5 natural gasoline calls

 

 

(546

)

 

 

—

 

 

 

(546

)

 

–NC4 butane swaps

 

 

(651

)

 

 

—

 

 

 

(651

)

 

–NC4 butane collars

 

 

(401

)

 

 

—

 

 

 

(401

)

Freight

–swaps

 

 

(1,206

)

 

 

—

 

 

 

(1,206

)

 

 

 

$

(71,043

)

 

$

34,590

 

 

$

(36,453

)
Effects of Derivatives on Consolidated Statements of Operations

The effects of our derivatives on our consolidated statements of operations are summarized below (in thousands):

 

 

 

Derivative Fair Value (Loss) Income

 

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Commodity swaps

 

$

(172,566

)

 

$

5,484

 

 

$

(225,330

)

 

$

233,838

 

Swaptions

 

 

(19,268

)

 

 

(2,019

)

 

 

(16,612

)

 

 

(1,353

)

Three-way collars

 

 

(53,705

)

 

 

(6,200

)

 

 

(52,832

)

 

 

(17,562

)

Collars

 

 

(38,934

)

 

 

2,557

 

 

 

(52,222

)

 

 

2,557

 

Calls

 

 

—

 

 

 

(33

)

 

 

(775

)

 

 

242

 

Basis swaps

 

 

17,368

 

 

 

(5,180

)

 

 

19,523

 

 

 

16,163

 

Freight swaps

 

 

(38

)

 

 

(912

)

 

 

(704

)

 

 

(7,013

)

Divestiture contingent consideration

 

 

17,460

 

 

 

—

 

 

 

21,390

 

 

 

—

 

Total

 

$

(249,683

)

 

$

(6,303

)

 

$

(307,562

)

 

$

226,872