XML 42 R32.htm IDEA: XBRL DOCUMENT v3.22.2.2
Derivative Activities (Tables)
 9 Months Ended
Sep. 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 September 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

Swaps

 

490,000 Mmbtu/day

 

$

3.08

 

 

 

 

 

 

 

 

2022

 

Collars

 

174,783 Mmbtu/day

 

 

 

 

 

 

$

4.02

 

$

4.74

2022

 

Three-way Collars

 

293,261 Mmbtu/day

 

 

 

$

2.91

 

$

3.63

 

$

4.65

2023

 

Swaps

 

360,000 Mmbtu/day

 

$

3.35

 

 

 

 

 

 

 

 

2023

 

Collars

 

275,589 Mmbtu/day

 

 

 

 

 

 

$

3.59

 

$

4.77

2023

 

Three-way Collars

 

149,863 Mmbtu/day

 

 

 

$

2.28

 

$

3.30

 

$

4.28

2024

 

Collars

 

469,235 Mmbtu/day

 

 

 

 

 

 

$

3.55

 

$

5.51

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Crude Oil

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

Swaps

 

6,500 bbls/day

 

$

62.20

 

 

 

 

 

 

 

 

2023

 

Swaps

 

5,123 bbls/day

 

$

71.39

 

 

 

 

 

 

 

 

January-September 2024

 

Collars

 

832 bbls/day

 

 

 

 

 

 

$

80.00

 

$

90.12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NGLs (C2-Ethane)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

October 2022

 

Swaps

 

4,000 bbls/day

 

$

0.64/gallon

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NGLs (C5-Natural Gasoline)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

Swaps

 

1,500 bbls/day

 

$

1.98/gallon

 

 

 

 

 

 

 

 

2022

 

Collars

 

2,000 bbls/day

 

 

 

 

 

 

$

1.89/gallon

 

$

2.02/gallon

 

 
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, 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

 

$

11,527

 

 

$

(11,527

)

 

$

—

 

 

–three-way collars

 

 

702

 

 

 

(702

)

 

 

—

 

 

–basis swaps

 

 

44,708

 

 

 

(33,551

)

 

 

11,157

 

Crude oil

–swaps

 

 

1,060

 

 

 

(1,060

)

 

 

—

 

 

–collars

 

 

3,123

 

 

 

(2,514

)

 

 

609

 

NGLs

–C2 ethane swaps

 

 

1,208

 

 

 

(1,208

)

 

 

—

 

 

–C5 natural gasoline swaps

 

 

2,501

 

 

 

—

 

 

 

2,501

 

 

–C5 natural gasoline collars

 

 

2,686

 

 

 

(591

)

 

 

2,095

 

Divestiture contingent consideration

 

 

34,410

 

 

 

—

 

 

 

34,410

 

 

 

 

$

101,925

 

 

$

(51,153

)

 

$

50,772

 

 

 

 

 

September 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

 

$

(432,143

)

 

$

—

 

 

$

(432,143

)

 

–collars

 

 

(236,803

)

 

 

11,527

 

 

 

(225,276

)

 

–three-way collars

 

 

(157,775

)

 

 

702

 

 

 

(157,073

)

 

–basis swaps

 

 

(20,930

)

 

 

33,551

 

 

 

12,621

 

Crude oil

–swaps

 

 

(12,082

)

 

 

1,060

 

 

 

(11,022

)

 

–collars

 

 

—

 

 

 

2,514

 

 

 

2,514

 

NGLs

–C2 ethane swaps

 

 

—

 

 

 

1,208

 

 

 

1,208

 

 

–C5 natural gasoline collars

 

 

—

 

 

 

591

 

 

 

591

 

 

 

 

$

(859,733

)

 

$

51,153

 

 

$

(808,580

)

 

 

 

 

 

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
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Commodity swaps

 

$

(241,437

)

 

$

(332,855

)

 

$

(890,741

)

 

$

(558,186

)

Swaptions

 

 

26,003

 

 

 

(33,718

)

 

 

11,149

 

 

 

(50,329

)

Three-way collars

 

 

(117,151

)

 

 

(173,344

)

 

 

(324,583

)

 

 

(226,176

)

Collars

 

 

(161,739

)

 

 

(106,340

)

 

 

(477,284

)

 

 

(158,562

)

Calls

 

 

—

 

 

 

(10,018

)

 

 

(1,363

)

 

 

(10,793

)

Basis swaps

 

 

36,966

 

 

 

(8,469

)

 

 

38,398

 

 

 

11,054

 

Freight swaps

 

 

—

 

 

 

(346

)

 

 

(33

)

 

 

(1,050

)

Divestiture contingent consideration

 

 

(350

)

 

 

12,870

 

 

 

7,770

 

 

 

34,260

 

Total

 

$

(457,708

)

 

$

(652,220

)

 

$

(1,636,687

)

 

$

(959,782

)