Derivative Activities (Tables)

3 Months Ended

Mar. 31, 2022

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 March 31, 2022, excluding our basis 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)
2022	Swaps	496,655 Mmbtu/day	$	3.10
2022	Collars	278,073 Mmbtu/day					$	3.31	$	3.72
2022	Three-way Collars	217,745 Mmbtu/day			$	2.30	$	2.84	$	3.45
2023	Swaps	260,000 Mmbtu/day	$	3.41
2023	Collars	234,932 Mmbtu/day					$	3.28	$	4.31
2023	Three-way Collars	149,863 Mmbtu/day			$	2.28	$	3.30	$	4.28
2024	Collars	200,000 Mmbtu/day					$	3.00	$	4.26
Crude Oil
2022	Swaps	6,833 bbls/day	$	61.90
2023	Swaps	5,123 bbls/day	$	71.39
NGLs (C2-Ethane)
April-June 2022	Swaps	2,681 bbls/day	$	0.41/gallon
NGLs (C3-Propane)
April-June 2022	Swaps	3,989 bbls/day	$	1.24/gallon
NGLs (NC4-Butane)
April-June 2022	Swaps	3,000 bbls/day	$	1.50/gallon
NGLs (C5-Natural Gasoline)
2022	Swaps	2,331 bbls/day	$	1.78/gallon
2022	Collars	1,530 bbls/day					$	1.77/gallon	$	1.88/gallon

(1) We also sold natural gas call swaptions of 100,000 Mmbtu/day for 2023 at a weighted average price of $3.21 Mmbtu/day.

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):

		March 31, 2022
		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	–basis swaps	$	27,129	$	(23,113	)	$	4,016
Divestiture contingent consideration			34,760		—			34,760
		$	61,889	$	(23,113	)	$	38,776

		March 31, 2022
		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	$	(447,051	)	$	—	$	(447,051	)
	–swaptions		(45,871	)		—		(45,871	)
	–collars		(220,908	)		—		(220,908	)
	–three-way collars		(174,458	)		—		(174,458	)
	–basis swaps		(4,677	)		23,113		18,436
Crude oil	–swaps		(80,270	)		—		(80,270	)
NGLs	–C2 ethane swaps		(202	)		—		(202	)
	–C3 propane swaps		(2,048	)		—		(2,048	)
	–NC4 butane swaps		(1,640	)		—		(1,640	)
	–C5 natural gasoline swaps		(11,849	)		—		(11,849	)
	–C5 natural gasoline collars		(5,481	)		—		(5,481	)
		$	(994,455	)	$	23,113	$	(971,342	)

		December 31, 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	$	22,491	$	(18,111	)	$	4,380
	–collars		12,378		(8,600	)		3,778
	–three-way collars		12,234		(8,449	)		3,785
	–basis swaps		18,092		(10,487	)		7,605
Crude oil	–swaps		368		(2,153	)		(1,785	)
NGLs	–C3 propane spread		4,153		(4,153	)		—
	–C5 natural gasoline swaps		266		(363	)		(97	)
	–C5 natural gasoline collars		221		(221	)		—
Freight	–swaps		114		(81	)		33
Divestiture contingent consideration			26,640		—			26,640
		$	96,957	$	(52,618	)	$	44,339

		December 31, 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	$	(121,759	)	$	18,111	$	(103,648	)
	–swaptions		(11,149	)		—		(11,149	)
	–collars		(16,579	)		8,600		(7,979	)
	–three-way collars		(37,166	)		8,449		(28,717	)
	–calls		(61	)		—		(61	)
	–basis swaps		(2,064	)		10,487		8,423
Crude oil	–swaps		(27,252	)		2,153		(25,099	)
NGLs	–C3 propane spread		(4,030	)		4,153		123
	–C5 natural gasoline swaps		(2,048	)		363		(1,685	)
	–C5 natural gasoline collars		(1,493	)		221		(1,272	)
Freight	–swaps		—			81		81
		$	(223,601	)	$	52,618	$	(170,983	)

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 March 31,
	2022			2021
Commodity swaps	$	(521,355	)	$	(52,764	)
Swaptions		(34,723	)		2,657
Three-way collars		(179,926	)		873
Collars		(232,292	)		(13,288	)
Calls		(1,363	)		(775	)
Basis swaps		22,515			2,155
Freight swaps		(33	)		(667	)
Divestiture contingent consideration		8,120			3,930
Total	$	(939,057	)	$	(57,879	)