Derivative Activities (Tables)

6 Months Ended

Jun. 30, 2017

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, 2017, excluding our basis and freight swaps which are discussed separately below:

Period	Contract Type	Volume Hedged	Weighted Average Hedge Price
Natural Gas
2017	Swaps (1)	865,000 Mmbtu/day	$ 3.21
2018	Swaps	417,260 Mmbtu/day	$ 3.25
2017	Collars (1)	122,609 Mmbtu/day	$ 3.45–$ 4.11
2018	Collars	60,000 Mmbtu/day	$ 3.40–$ 3.76
2017	Purchased Puts (1)	185,870 Mmbtu/day	$ 3.50 (2)
2017	Sold Calls	23,370 Mmbtu/day	$ 3.70 (3)
Crude Oil
2017	Swaps (1)	8,761 bbls/day	$ 56.38
2018	Swaps	5,250 bbls/day	$ 53.20
2019	Swaps	500 bbls/day	$ 51.75
NGLs (C2-Ethane)
2017	Swaps	3,000 bbls/day	$ 0.27/gallon
2018	Swaps	250 bbls/day	$ 0.29/gallon
NGLs (C3-Propane)
2017	Swaps	13,826 bbls/day	$ 0.57/gallon
2018	Swaps	7,199 bbls/day	$0.65/gallon
NGLs (NC4-Normal Butane)
2017	Swaps	7,875 bbls/day	$ 0.75/gallon
2018	Swaps	4,250 bbls/day	$ 0.81/gallon
NGLs (C5-Natural Gasoline)
2017	Swaps	5,500 bbls/day	$ 1.07/gallon
2018	Swaps	1,500 bbls/day	$ 1.19/gallon

⁽¹⁾ Includes derivative instruments assumed in connection with the MRD Merger.

⁽²⁾ Weighted average deferred premium is ($0.32).

⁽³⁾ Weighted average deferred premium is $0.27.

Combined Fair Value of Derivatives, by Consolidated Balance Sheets

The combined fair value of derivatives included in the accompanying consolidated balance sheets as of June 30, 2017 and December 31, 2016 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):

		June 30, 2017
		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	$	48,423	$	(17,824	)	$	30,599
	–basis swaps		1,412		(2,632	)		(1,220	)
	–collars		10,629		(804	)		9,825
	–puts		17,314		—			17,314
	–calls		—		(134	)		(134	)
Crude oil	–swaps		25,230		(798	)		24,432
NGLs	–C2 ethane swaps		482		(36	)		446
	–C3 propane swaps		7,025		(6,803	)		222
	–C3 propane spread swaps		9,016		(6,426	)		2,590
	–NC4 butane swaps		9,957		(1,561	)		8,396
	–C5 natural gasoline swaps		5,760		(910	)		4,850
Freight	–swaps		109		—			109
		$	135,357	$	(37,928	)	$	97,429

		June 30, 2017
		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	$	(15,527	)	$	17,824	$	2,297
	–basis swaps		(11,930	)		2,632		(9,298	)
	–collars		—			804		804
	–calls		(134	)		134		—
Crude oil	–swaps		(137	)		798		661
NGLs	–C2 ethane swaps		(36	)		36		—
	–C3 propane swaps		(6,708	)		6,803		95
	–C3 propane spread swaps		(6,426	)		6,426		—
	–NC4 butane swaps		(1,561	)		1,561		—
	–C5 natural gasoline swaps		(910	)		910		—
		$	(43,369	)	$	37,928	$	(5,441	)

		December 31, 2016
		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	$	13,213	$	(11,425	)	$	1,788
	–basis swaps		12,535		(9,437	)		3,098
	–collars		6,298		(6,298	)		—
	–puts		18,159		(15,429	)		2,730
Crude oil	–swaps		9,356		(3,489	)		5,867
NGLs	–C2 ethane swaps		53		(53	)		—
	–C3 propane spread swaps		17,396		(17,396	)		—
	–NC4 butane swaps		4		(4	)		—
Freight	–swaps		65		(65	)		—
		$	77,079	$	(63,596	)	$	13,483

		December 31, 2016
		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	$	(158,359	)	$	11,425	$	(146,934	)
	–basis swaps		(687	)		9,437		8,750
	–collars		(2,625	)		6,298		3,673
	–puts		—			15,429		15,429
	–calls		(1,041	)		—		(1,041	)
Crude oil	–swaps		(13,206	)		3,489		(9,717	)
NGLs	–C2 ethane swaps		(1,008	)		53		(955	)
	–C3 propane swaps		(32,437	)		—		(32,437	)
	–C3 propane spread swaps		(18,138	)		17,396		(742	)
	–NC4 butane swaps		(13,419	)		4		(13,415	)
	–C5 natural gasoline swaps		(12,176	)		—		(12,176	)
Freight	–swaps		—			65		65
		$	(253,096	)	$	63,596	$	(189,500	)

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 June 30,						Six Months Ended June 30,
		2017			2016			2017			2016
Commodity swaps	$	93,567		$	(158,576	)	$	260,319		$	(78,931	)
Collars		4,790			—			14,265			—
Puts		3,012			—			9,719			—
Calls		529			—			1,040			—
Basis swaps		9,304			(4,199	)		(8,668	)		3,075
Freight swaps		(7	)		(23	)		77			(34	)
Total	$	111,195		$	(162,798	)	$	276,752		$	(75,890	)