Derivative Activities (Tables)

12 Months Ended

Dec. 31, 2017

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

Period	Contract Type	Volume Hedged	Weighted Average Hedge Price
Natural Gas
2018	Swaps	794,822 Mmbtu/day	$ 3.13
2019	Swaps	12,329 Mmbtu/day	$ 3.01
January − March 2018	Collars	60,000 Mmbtu/day	$ 3.40-$ 3.76
April – December 2018	Swaptions	307,500 Mmbtu/day	$ 2.98 (1)
2019	Swaptions	85,000 Mmbtu/day	$ 2.97 (1)
Crude Oil
2018	Swaps	8,995 bbls/day	$ 53.30
2019	Swaps	4,746 bbls/day	$ 52.81
NGLs (C2-Ethane)
2018	Swaps	250 bbls/day	$ 0.29/gallon
NGLs (C3-Propane)
2018	Swaps	10,362 bbls/day	$ 0.68/gallon
2018	Collars	2,000 bbls/day	$ 0.90-$ 1.05/gallon
NGLs (NC4-Normal Butane)
2018	Swaps	4,621 bbls/day	$ 0.81/gallon
NGLs (C5-Natural Gasoline)
2018	Swaps	4,713 bbls/day	$ 1.19/gallon
2019	Swaps	1,000 bbls/day	$ 1.24/gallon

⁽¹⁾ Contains a combined derivative instrument consisting of a fixed price swap and a sold option to extend or double the volume. For April through December 2018, we have swaps in place for 147,500 Mmbtu per day on which the counterparty can elect to double the volume at a weighted average price of $2.89. We also have swaps in place for 160,000 Mmbtu per day on which the counterparty can elect to extend the contract through December 2019 at a weighted average price of $3.07. In 2019, if the counterparty elects to double the volume, we would have additional swaps covering 85,000 Mmbtu per day at a weighted average price of $2.97.

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, 2017 and 2016 is summarized below (in thousands). As of December 31, 2017, we are conducting derivative activities with nineteen counterparties, of which all but five 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, 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	$	87,794	$	(4,106	)	$	83,688
	–swaptions		18,817		(8,103	)		10,714
	–basis swaps		1,815		(6,673	)		(4,858	)
	–collars		3,039		(500	)		2,539
Crude oil	–swaps		2		(7,928	)		(7,926	)
NGLs	–C2 ethane swaps		57		—			57
	–C3 propane swaps		—		(12,556	)		(12,556	)
	–C3 propane collars		85		(85	)		—
	–C3 propane spread swaps		12,762		(12,762	)		—
	–NC4 butane swaps		—		(6,051	)		(6,051	)
	–C5 natural gasoline swaps		—		(6,727	)		(6,727	)
Freight	–swaps		276		(276	)		—
		$	124,647	$	(65,767	)	$	58,880

		December 31, 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	$	(216	)	$	4,106	$	3,890
	–swaptions		(12,283	)		8,103		(4,180	)
	–basis swaps		(9,580	)		6,673		(2,907	)
	–collars		—			500		500
Crude oil	–swaps		(24,726	)		7,928		(16,798	)
NGLs	–C3 propane swaps		(34,325	)		12,556		(21,769	)
	–C3 propane collars		—			85		85
	–C3 propane spread swaps		(13,983	)		12,762		(1,221	)
	–NC4 butane swaps		(11,188	)		6,051		(5,137	)
	–C5 natural gasoline swaps		(13,488	)		6,727		(6,761	)
Freight	–swaps		—			276		276
		$	(119,789	)	$	65,767	$	(54,022	)

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

	Year Ended December 31,
	Derivative Fair Value Income (Loss)
	2017			2016			2015
Commodity Swaps	$	181,095		$	(265,466	)	$	398,020
Swaptions		6,534			—			—
Re-purchased swaps		—			—			851
Collars		18,132			(6,926	)		16,539
Basis swaps		(4,647	)		29,154			954
Puts		10,929			(18,201	)		—
Calls		987			(18	)		—
Freight swaps		320			66			—
Total	$	213,350		$	(261,391	)	$	416,364