Derivative Activities (Tables)

9 Months Ended

Sep. 30, 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 September 30, 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	1,271,739 Mmbtu/day		$ 2.82
2020	Swaps	674,208 Mmbtu/day		$ 2.64
2019	Swaptions	140,000 Mmbtu/day		$ 2.81 (1)
2020	Swaptions	147,568 Mmbtu/day		$ 2.77 (1)
2021	Swaptions	30,000 Mmbtu/day		$ 2.70 (1)
Crude Oil
2019	Swaps	9,168 bbls/day		$ 56.11
2020	Swaps	6,738 bbls/day		$ 58.53
2019	Collars	1,000 bbls/day		$ 63.00 − $ 73.00
2020	Swaptions	1,000 bbls/day		$ 57.00 (2)
2021	Swaptions	1,000 bbls/day		$ 55.00 (2)
2020	Calls	500 bbls/day		$ 59.00
NGLs (C3-Propane)
2019	Swaps	500 bbls/day		$ 0.53/gallon
NGLs (NC4-Normal Butane)
2019	Swaps	1,000 bbls/day		$ 0.60/gallon
NGLs (iC4-Iso Butane)
2019	Swaps	500 bbls/day		$ 0.75/gallon
NGLs (C5-Natural Gasoline)
2019	Swaps	5,500 bbls/day		$ 1.30/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 140,000 Mmbtu/day on which the counterparty can elect to extend the contract through December 2020 at a weighted average price of $2.81. In 2020, if the counterparty elects to double the volume, we would have additional swaps in place for 110,000 Mmbtu/day at a weighted average price of $2.78. We also have swaps in place for 2020 for 50,000 Mmbtu/day on which the counterparty can elect to extend the contract through December 2021 at a weighted average price of $2.75. In 2021, if the counterparty elects to double the volume, we would have additional swaps in place for 30,000 Mmbtu/day at a weighted average price of $2.70.

⁽²⁾ 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 2020 for 1,000 bbls/day on which the counterparty can elect to extend the contract through 2021 at a weighted average price of $57.00. In 2021, if the counterparty elects to double the volume, we would have additional swaps in place for 1,000 bbls/day at a weighted average price of $55.00.

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, 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):

		September 30, 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	$	102,076	$	(1,106	)	$	100,970
	–swaptions		27,309		(2,107	)		25,202
	–basis swaps		6,695		(2,108	)		4,587
Crude oil	–swaps		19,012		(602	)		18,410
	–swaptions		2,896		(1,382	)		1,514
	–calls		—		(224	)		(224	)
	−collars		869		—			869
NGLs	–C3 propane spread swaps		17,816		(17,816	)		—
	–C3 propane swaps		132		—			132
	–iC4 iso butane swaps		—		(2	)		(2	)
	–NC4 normal butane swaps		160		—			160
	−C5 natural gasoline swaps		5,229		—			5,229
Freight	−swaps		1,439		(1,439	)		—
		$	183,633	$	(26,786	)	$	156,847

		September 30, 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	$	(1,106	)	$	1,106	$	—
	–swaptions		(2,107	)		2,107		—
	–basis swaps		(2,075	)		2,108		33
Crude oil	–swaps		(602	)		602		—
	–swaptions		(1,382	)		1,382		—
	–calls		(224	)		224		—
NGLs	–C3 propane spread swaps		(21,105	)		17,816		(3,289	)
	–iC4 iso butane swaps		(2	)		2		—
Freight	–swaps		—			1,439		1,439
		$	(28,603	)	$	26,786	$	(1,817	)

		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 normal 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 Income (Loss)
		Three Months Ended September 30,						Nine Months Ended September 30,
		2019			2018			2019			2018
Commodity swaps	$	60,090		$	(35,868	)	$	161,799		$	(143,598	)
Swaptions		10,358			7,093			39,451			4,100
Collars		356			(3,965	)		(3,590	)		(4,031	)
Calls		(224	)		197			(224	)		526
Basis swaps		3,448			(2,350	)		7,801			(9,043	)
Freight swaps		648			302			2,953			156
Total	$	74,676		$	(34,591	)	$	208,190		$	(151,890	)