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Derivative Activities (Tables)
 12 Months Ended
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Volumes Hedged and Average Hedge Prices The following table sets forth the derivative volumes by year as of December 31, 2023, excluding our basis swaps which are discussed separately below:

 

Period

 

Contract Type

 

Volume Hedged

 

Weighted Average Hedge Price

 

 

 

 

 

 

 

Swap

 

 

Sold Put

 

 

Floor

 

 

Ceiling

 

Natural Gas (a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

Swaps

 

304,973 Mmbtu/day

 

$

4.01

 

 

 

 

 

 

 

 

 

 

2024

 

Collars

 

436,694 Mmbtu/day

 

 

 

 

 

 

 

$

3.50

 

 

$

5.63

 

2024

 

Three-way Collars

 

93,511 Mmbtu/day

 

 

 

 

$

2.50

 

 

$

3.40

 

 

$

4.15

 

2025

 

Swaps

 

400,000 Mmbtu/day

 

$

4.12

 

 

 

 

 

 

 

 

 

 

2025

 

Three-way Collars

 

30,000 Mmbtu/day

 

 

 

 

$

2.70

 

 

$

4.00

 

 

$

5.00

 

2026

 

Swaps

 

60,000 Mmbtu/day

 

$

4.15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Crude Oil

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

January-September 2024

 

Swaps

 

4,000 bbls/day

 

$

80.25

 

 

 

 

 

 

 

 

 

 

January-September 2024

 

Collars

 

832 bbls/day

 

 

 

 

 

 

 

$

80.00

 

 

$

90.12

 

 

(a)

We also sold natural gas swaptions of 40,000 Mmbtu/day for calendar year 2026 at a weighted average price of $4.11/Mmbtu that expire June 2024.

Combined Fair Value of Derivatives, by Consolidated Balance Sheets

The combined fair value of derivatives included in the accompanying consolidated balance sheets as of December 31, 2023 and 2022 is summarized below (in thousands). As of December 31, 2023, we are conducting derivative activities with fourteen counterparties, of which all but six are secured lenders in our bank credit facility. We believe all of these counterparties are acceptable credit risks. At times, such risks may be concentrated with certain counterparties. The credit worthiness of our counterparties is subject to periodic review. 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.

 

 

 

 

 

December 31, 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

 

$

238,465

 

 

$

—

 

 

$

238,465

 

 

 

–swaptions

 

 

—

 

 

 

(1,161

)

 

 

(1,161

)

 

 

–collars

 

 

150,456

 

 

 

—

 

 

 

150,456

 

 

 

–three-way collars

 

 

25,406

 

 

 

—

 

 

 

25,406

 

 

 

–basis swaps

 

 

26,852

 

 

 

(8,246

)

 

 

18,606

 

Crude oil

 

–swaps

 

 

9,115

 

 

 

—

 

 

 

9,115

 

 

 

–collars

 

 

2,084

 

 

 

—

 

 

 

2,084

 

 

 

 

 

$

452,378

 

 

$

(9,407

)

 

$

442,971

 

 

 

 

 

 

 

 

 

 

 

December 31, 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

 

–swaptions

 

$

(1,161

)

 

$

1,161

 

 

$

—

 

 

 

–basis swaps

 

 

(8,575

)

 

 

8,246

 

 

 

(329

)

 

 

 

 

$

(9,736

)

 

$

9,407

 

 

$

(329

)

 

 

 

 

 

 

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 income for the last three years are summarized below (in thousands).

 

 

 

Year Ended December 31,

 

Derivative Fair Value Income (Loss)

 

2023

 

 

2022

 

 

2021

 

Commodity swaps

 

$

434,836

 

 

$

(713,122

)

 

$

(466,203

)

Swaptions

 

 

(1,161

)

 

 

11,149

 

 

 

(1,346

)

Collars

 

 

260,630

 

 

 

(302,364

)

 

 

(117,612

)

Three-way collars

 

 

88,096

 

 

 

(235,335

)

 

 

(137,443

)

Basis swaps

 

 

43,833

 

 

 

41,622

 

 

 

33,691

 

Calls

 

 

—

 

 

 

(1,363

)

 

 

(836

)

Freight swaps

 

 

—

 

 

 

(33

)

 

 

(647

)

Divestiture contingent consideration

 

 

(5,080

)

 

 

10,940

 

 

 

40,180

 

Total

 

$

821,154

 

 

$

(1,188,506

)

 

$

(650,216

)