Derivative Activities (Tables)

9 Months Ended

Sep. 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 September 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	583,152 Mmbtu/day	$	2.84
2021	Collars	227,391 Mmbtu/day						$		2.87	$		3.42
2021	Three-way Collars	339,457 Mmbtu/day			$	2.26		$		2.62	$		3.04
2022	Swaps	382,329 Mmbtu/day	$	3.11
2022	Collars	213,438 Mmbtu/day						$		3.26	$		3.70
2022	Three-way Collars	251,781 Mmbtu/day			$	2.37		$		3.03	$		3.77
January - March 2022	Calls	80,000 Mmbtu/day									$		6.02
2023	Swaps	60,000 Mmbtu/day	$	3.27
Crude Oil
2021	Swaps	7,500 bbls/day	$	56.92
2022	Swaps	5,811 bbls/day	$	59.59
2023	Swaps	500 bbls/day	$	63.50
NGLs (C3-Propane)
2021	Swaps	6,000 bbls/day	$	1.17/gallon
2021	Collars	4,000 bbls/day						$		1.00/gallon	$		$1.20/gallon
NGLs (NC4-Normal Butane)
2021	Swaps	2,663 bbls/day	$	1.17/gallon
2021	Collars	2,000 bbls/day						$		1.00/gallon	$		1.20/gallon
NGLs (C5-Natural Gasoline)
2021	Swaps	2,000 bbls/day	$	1.41/gallon
2021	Collars	3,000 bbls/day						$		1.35/gallon	$		1.55/gallon
January - March 2022	Swaps	2,656 bbls/day	$	1.59/gallon
January - March 2022	Collars	2,000 bbls/day						$		1.45/gallon	$		1.60/gallon

(1) We also sold natural gas call swaptions of 80,000 Mmbtu/day for 2022 at a weighted average price of $2.80 and 70,000 Mmbtu/day for 2023 at a weighted average price of $3.04.

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):

		September 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	$	5,574	$	(5,574	)	$	—
	–collars		193		(193	)		—
	–three-way collars		2		(2	)		—
	–basis swaps		15,633		(12,187	)		3,446
Crude oil	–swaps		10		(10	)		—
NGLs	–C3 propane spread swaps		8,367		(8,367	)		—
	−C5 natural gasoline swaps		17		(17	)		—
Freight	−swaps		27		(30	)		(3	)
Divestiture contingent consideration			50,220		—			50,220
		$	80,043	$	(26,380	)	$	53,663

		September 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	$	(359,243	)	$	5,574	$	(353,669	)
	–swaptions		(60,132	)		—		(60,132	)
	–collars		(93,418	)		193		(93,225	)
	–three-way collars		(200,479	)		2		(200,477	)
	–calls		(10,018	)		—		(10,018	)
	–basis swaps		(7,160	)		12,187		5,027
Crude oil	–swaps		(34,274	)		10		(34,264	)
NGLs	–C3 propane spread swaps		(7,973	)		8,367		394
	–C3 propane swaps		(6,140	)		—		(6,140	)
	–C3 collars		(3,787	)		—		(3,787	)
	–NC4 butane swaps		(3,991	)		—		(3,991	)
	–NC4 butane collars		(2,797	)		—		(2,797	)
	–C5 natural gasoline swaps		(3,908	)		17		(3,891	)
	–C5 natural gasoline collars		(3,728	)		—		(3,728	)
Freight	–swaps		(53	)		30		(23	)
		$	(797,101	)	$	26,380	$	(770,721	)

		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 September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Commodity swaps	$	(332,855	)	$	(91,425	)	$	(558,186	)	$	142,413
Swaptions		(33,718	)		(14,166	)		(50,329	)		(15,520	)
Three-way collars		(173,344	)		(20,705	)		(226,176	)		(38,267	)
Collars		(106,340	)		(16,893	)		(158,562	)		(14,336	)
Calls		(10,018	)		(255	)		(10,793	)		(12	)
Basis swaps		(8,469	)		15,587			11,054			31,750
Freight swaps		(346	)		2,737			(1,050	)		(4,276	)
Divestiture contingent consideration		12,870			430			34,260			430
Total	$	(652,220	)	$	(124,690	)	$	(959,782	)	$	102,182