Derivative Activities (Tables)

6 Months Ended

Jun. 30, 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 June 30, 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	495,000 Mmbtu/day	$	3.09
2022	Collars	242,500 Mmbtu/day					$	3.29	$	3.69
2022	Three-way Collars	258,207 Mmbtu/day			$	2.83	$	3.51	$	4.50
2023	Swaps	320,000 Mmbtu/day	$	3.41
2023	Collars	240,795 Mmbtu/day					$	3.30	$	4.36
2023	Three-way Collars	149,863 Mmbtu/day			$	2.28	$	3.30	$	4.28
2024	Collars	281,694 Mmbtu/day					$	3.20	$	5.26
Crude Oil
2022	Swaps	6,750 bbls/day	$	62.08
2023	Swaps	5,123 bbls/day	$	71.39
January-September 2024	Collars	832 bbls/day					$	80.00	$	90.12
NGLs (C2-Ethane)
July 2022	Swaps	1,000 bbls/day	$	0.55/gallon
NGLs (NC4-Butane)
July-September 2022	Swaps	2,000 bbls/day	$	1.42/gallon
NGLs (C5-Natural Gasoline)
2022	Swaps	2,003 bbls/day	$	1.89/gallon
2022	Collars	2,000 bbls/day					$	1.83/gallon	$	1.95/gallon

(1) We also sold natural gas call swaptions of 40,000 Mmbtu/day for 2023 at a weighted average price of $2.91 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):

		June 30, 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	–collars	$	6,280	$	(6,280	)	$	—
	–three-way collars		7,280		(7,280	)		—
	–basis swaps		33,498		(29,426	)		4,072
Crude oil	–collars		885		(735	)		150
NGLs	–C2 ethane swaps		78		(78	)		—
	–NC4 butane swaps		101		(101	)		—
	–C5 natural gasoline swaps		453		(686	)		(233	)
	–C5 natural gasoline collars		289		(186	)		103
Divestiture contingent consideration			34,760		—			34,760
		$	83,624	$	(44,772	)	$	38,852

		June 30, 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	$	(374,506	)	$	—	$	(374,506	)
	–swaptions		(26,003	)		—		(26,003	)
	–collars		(205,548	)		6,280		(199,268	)
	–three-way collars		(136,622	)		7,280		(129,342	)
	–basis swaps		(30,969	)		29,426		(1,543	)
Crude oil	–swaps		(71,720	)		—		(71,720	)
	–collars		—			735		735
NGLs	–C2 ethane swaps		—			78		78
	–NC4 butane swaps		—			101		101
	–C5 natural gasoline swaps		(1,693	)		686		(1,007	)
	–C5 natural gasoline collars		(1,343	)		186		(1,157	)
		$	(848,404	)	$	44,772	$	(803,632	)

		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 June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Commodity swaps	$	(127,949	)	$	(172,566	)	$	(649,304	)	$	(225,330	)
Swaptions		19,868			(19,268	)		(14,854	)		(16,612	)
Three-way collars		(27,506	)		(53,705	)		(207,432	)		(52,832	)
Collars		(83,252	)		(38,934	)		(315,545	)		(52,222	)
Calls		—			—			(1,363	)		(775	)
Basis swaps		(21,083	)		17,368			1,432			19,523
Freight swaps		—			(38	)		(33	)		(704	)
Divestiture contingent consideration		—			17,460			8,120			21,390
Total	$	(239,922	)	$	(249,683	)	$	(1,178,979	)	$	(307,562	)