Derivative Activities (Tables)

9 Months Ended

Sep. 30, 2023

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, 2023, 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 (a)
2023	Swaps	383,315 Mmbtu/day	$	3.50
2023	Collars	253,370 Mmbtu/day						$	3.37	$	4.48
2023	Three-way Collars	159,891 Mmbtu/day			$		2.28	$	3.26	$	4.29
2024	Swaps	304,973 Mmbtu/day	$	4.01
2024	Collars	436,694 Mmbtu/day						$	3.50	$	5.63
2024	Three-way Collars	50,000 Mmbtu/day			$		2.50	$	3.50	$	4.24
2025	Swaps	360,000 Mmbtu/day	$	4.12
2026	Swaps	52,500 Mmbtu/day	$	4.14
Crude Oil
2023	Swaps	5,582 bbls/day	$	72.61
January-September 2024	Swaps	3,664 bbls/day	$	80.21
January-September 2024	Collars	832 bbls/day						$	80.00	$	90.12

Combined Fair Value of Derivatives, by Consolidated Balance Sheets

The combined fair value of derivatives included in the accompanying consolidated balance sheets as of September 30, 2023 and December 31, 2022 is summarized below. The assets and liabilities are netted where derivatives with both gain and loss positions are held by a single counterparty and we have master netting arrangements. The tables below provide additional information relating to our master netting arrangements with our derivative counterparties (in thousands):

		September 30, 2023
		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	$	110,242	$	(2,726	)	$	107,516
	–swaptions		—		(2,435	)		(2,435	)
	–collars		90,325		(2,536	)		87,789
	–three-way collars		8,430		(640	)		7,790
	–basis swaps		30,020		(12,459	)		17,561
Crude oil	–swaps		354		(9,420	)		(9,066	)
	–collars		515		—			515
Divestiture contingent consideration			7,350		—			7,350
		$	247,236	$	(30,216	)	$	217,020

		September 30, 2023
		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	$	(2,726	)	$	2,726	$	—
	–swaptions		(2,435	)		2,435		—
	–collars		(2,536	)		2,536		—
	–three-way collars		(640	)		640		—
	–basis swaps		(12,876	)		12,459		(417	)
Crude oil	–swaps		(9,420	)		9,420		—
		$	(30,633	)	$	30,216	$	(417	)

		December 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	–swaps	$	19,438	$	(6,236	)	$	13,202
	–collars		54,222		(45,452	)		8,770
	–three-way collars		12,424		(12,424	)		—
	–basis swaps		25,493		(20,437	)		5,056
Crude oil	–collars		1,807		—			1,807
Divestiture contingent consideration			13,080		—			13,080
		$	126,464	$	(84,549	)	$	41,915

		December 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	$	(115,374	)	$	6,236	$	(109,138	)
	–collars		(72,866	)		45,452		(27,414	)
	–three-way collars		(24,341	)		12,424		(11,917	)
	–basis swaps		(24,972	)		20,437		(4,535	)
Crude oil	–swaps		(13,908	)		—		(13,908	)
		$	(251,461	)	$	84,549	$	(166,912	)

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 Income (Loss)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Commodity swaps	$	14,513		$	(241,437	)	$	266,672		$	(890,741	)
Swaptions		57			26,003			(2,435	)		11,149
Three-way collars		7,071			(117,151	)		63,285			(324,583	)
Collars		12,566			(161,739	)		184,924			(477,284	)
Calls		—			—			—			(1,363	)
Basis swaps		4,977			36,966			23,379			38,398
Freight swaps		—			—			—			(33	)
Divestiture contingent consideration		(790	)		(350	)		(5,730	)		7,770
Total	$	38,394		$	(457,708	)	$	530,095		$	(1,636,687	)