Derivative Activities (Tables)

3 Months Ended

Mar. 31, 2019

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 March 31, 2019, excluding our basis and freight swaps which are discussed separately below:

Period	Contract Type	Volume Hedged	Weighted Average Hedge Price
Natural Gas
2019	Swaps	1,246,873 Mmbtu/day		$ 2.80
2020	Swaps	190,000 Mmbtu/day		$ 2.75
2019	Swaptions	150,000 Mmbtu/day		$ 2.81 (1)
2020	Swaptions	140,000 Mmbtu/day		$ 2.78 (1)
November – December 2019	Swaptions	20,000 Mmbtu/day		$ 3.20 (1)
January – March 2020	Swaptions	20,000 Mmbtu/day		$ 3.20 (1)
Crude Oil
2019	Swaps	7,472 bbls/day		$ 55.47
2020	Swaps	2,557 bbls/day		$ 60.53
2019	Collars	1,000 bbls/day		$ 63.00 − $ 73.02
NGLs (C2-Ethane)
April – June 2019	Swaps	500 bbls/day		$0.35/gallon
NGLs (C3-Propane)
April – June 2019	Swaps	8,500 bbls/day		$ 0.88/gallon
April – June 2019	Collars	1,000 bbls/day		$ 0.90 − $ 0.96
NGLs (C5-Natural Gasoline)
2019	Swaps	2,658 bbls/day		$ 1.39/gallon

⁽¹⁾ Contains a combined derivative instrument consisting of a fixed price swap and a sold option to extend or double the volumes. We have swaps in place for 2019 for 150,000 Mmbtu/day on which the counterparty can elect to extend the contract through December 2020 at a weighted average price of $2.81. In addition, we have swaps in place for November and December 2019 where, if the counterparty elects to double the volume, we would have additional swaps in place for 20,000 Mmbtu/day at a weighted average price of $3.20. In 2020, if the counterparty elects to double the volume, we would have additional swaps in place for 140,000 Mmbtu/day at a weighted average price of $2.78. In addition, for January through March 2020, we have additional swaps in place, if the counterparty elects to double the volume, we would have an additional 20,000 Mmbtu/day at a weighted average price of $3.20.

Combined Fair Value of Derivatives, by Consolidated Balance Sheets

The combined fair value of derivatives included in the accompanying consolidated balance sheets as of March 31, 2019 and December 31, 2018 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):

		March 31, 2019
		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	$	15,883	$	(7,441	)	$	8,442
	–swaptions		6,487		(4,634	)		1,853
	–basis swaps		838		(838	)		—
Crude oil	–swaps		2,871		(4,648	)		(1,777	)
	−collars		1,252		(750	)		502
NGLs	−C2 ethane swaps		216		(216	)		—
	–C3 propane swaps		7,471		(3,108	)		4,363
	−C3 propane collars		967		(967	)		—
	–C3 propane spread swaps		3,425		(3,425	)		—
	−C5 natural gasoline swaps		4,643		(3,474	)		1,169
Freight	−swaps		37		(37	)		—
		$	44,090	$	(29,538	)	$	14,552

		March 31, 2019
		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	$	(13,030	)	$	7,441	$	(5,589	)
	–swaptions		(12,550	)		4,634		(7,916	)
	–basis swaps		(4,278	)		838		(3,440	)
Crude oil	–swaps		(11,197	)		4,648		(6,549	)
	−collars		—			750		750
NGLs	−C2 ethane swaps		—			216		216
	–C3 propane swaps		—			3,108		3,108
	–C3 propane collars		—			967		967
	–C3 propane spread swaps		(4,234	)		3,425		(809	)
	–C5 natural gasoline swaps		(37	)		3,474		3,437
Freight	–swaps		(140	)		37		(103	)
		$	(45,466	)	$	29,538	$	(15,928	)

		December 31, 2018
		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	$	20,834	$	(11,748	)	$	9,086
	–swaptions		5,200		(3,883	)		1,317
	–basis swaps		6,468		(2,822	)		3,646
Crude oil	–swaps		26,481		(651	)		25,830
	–collars		5,945		(707	)		5,238
NGLs	–C3 propane swaps		18,719		(589	)		18,130
	–C3 propane collars		8,538		—			8,538
	–C3 propane spread swaps		8,984		(8,868	)		116
	–NC4 butane swaps		4,084		—			4,084
	–C5 natural gasoline swaps		17,371		—			17,371
Freight	–swaps		—		(561	)		(561	)
		$	122,624	$	(29,829	)	$	92,795

		December 31, 2018
		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	$	(18,332	)	$	11,748	$	(6,584	)
	–swaptions		(7,972	)		3,883		(4,089	)
	–basis swaps		(1,702	)		2,822		1,120
Crude oil	–swaps		—			651		651
	–collars		—			707		707
NGLs	–C3 propane swaps		—			589		589
	–C3 propane spread swaps		(8,868	)		8,868		—
Freight	–swaps		(561	)		561		—
		$	(37,435	)	$	29,829	$	(7,606	)

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 March 31,
		2019			2018
Commodity swaps	$	(57,418	)	$	(16,536	)
Swaptions		(3,291	)		3,599
Collars		(4,524	)		(77	)
Calls		—			177
Basis swaps		3,415			(864	)
Freight swaps		87			(308	)
Total	$	(61,731	)	$	(14,009	)