Derivative Activities (Tables)

6 Months Ended

Jun. 30, 2020

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, 2020, excluding our basis and freight swaps which are discussed separately below:

Period	Contract Type	Volume Hedged	Weighted Average Hedge Price
			Swap		Sold Put	Floor	Ceiling
Natural Gas (1)
2020	Swaps	1,146,848 Mmbtu/day	$	2.59
2021	Swaps	70,000 Mmbtu/day	$	2.61
2021	Collars	60,000 Mmbtu/day				$ 2.60	$ 3.00
July – September 2020	Calls	60,000 Mmbtu/day					$ 2.50
July – October 2020	Three-way Collars	60,000 Mmbtu/day			$ 1.75	$ 2.00	$ 2.53
2021	Three-way Collars	240,000 Mmbtu/day			$ 1.99	$ 2.33	$ 2.60
Crude Oil (1)
2020	Swaps	7,000 bbls/day	$	58.12
2021	Swaps	1,000 bbls/day	$	55.00
July – September 2020	Calls	500 bbls/day					$ 59.00
NGLs (C3-Propane)
July – September 2020	Swaps	3,022 bbls/day	$	0.47/gallon
NGLs (NC4-Normal Butane)
July – September 2020	Swaps	2,500 bbls/day	$	0.57/gallon
July – September 2020	Calls	2,500 bbls/day					$ 0.57/gallon
NGLs (C5-Natural Gasoline)
July – September 2020	Swaps	1,674 bbls/day	$	0.73/gallon

⁽¹⁾ We also sold natural gas call swaptions of 180,000 Mmbtu/day for 2021 at a weighted average price of $2.82. In addition, we sold oil call swaptions of 1,000 bbls per day for 2021 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 June 30, 2020 and December 31, 2019 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, 2020
		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	$	134,499	$	(3,174	)	$	131,325
	–swaptions		—		(3,936	)		(3,936	)
	–calls		—		(41	)		(41	)
	–collars		2,557		(1,305	)		1,252
	–three-way collars		1,860		(12,272	)		(10,412	)
	–basis swaps		2,046		(3,656	)		(1,610	)
Crude oil	–swaps		30,045		(832	)		29,213
	–calls		—		(3	)		(3	)
NGLs	–C3 propane spread swaps		12,959		(13,431	)		(472	)
	–C3 propane swaps		319		(244	)		75
	–NC4 normal butane swaps		905		—			905
	–NC4 normal butane calls		—		(62	)		(62	)
	−C5 natural gasoline swaps		109		(107	)		2
		$	185,299	$	(39,063	)	$	146,236

		June 30, 2020
		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	$	(3,058	)	$	3,174	$	116
	–swaptions		(6,201	)		3,936		(2,265	)
	–calls		(41	)		41		—
	–collars		—			1,305		1,305
	–three-way collars		(20,405	)		12,272		(8,133	)
	–basis swaps		(6,526	)		3,656		(2,870	)
Crude oil	–swaps		(832	)		832		—
	–calls		(3	)		3		—
NGLs	–C3 propane spread swaps		(11,935	)		13,431		1,496
	–C3 propane swaps		(244	)		244		—
	–NC4 normal butane calls		(62	)		62		—
	–C5 natural gasoline swaps		(107	)		107		—
Freight	–swaps		(4,956	)		—		(4,956	)
		$	(54,370	)	$	39,063	$	(15,307	)

		December 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	$	134,364	$	(2,913	)	$	131,451
	–swaptions		—		(1,325	)		(1,325	)
	–basis swaps		10,766		(1,092	)		9,674
Crude oil	–swaps		3,893		(4,794	)		(901	)
	–swaptions		—		(1,597	)		(1,597	)
	–calls		—		(349	)		(349	)
NGLs	–C3 propane spread swaps		1,913		(1,913	)		—
	–NC4 normal butane swaps		167		—			167
	–C5 natural gasoline swaps		60		(127	)		(67	)
Freight	–swaps		1,529		(1,028	)		501
		$	152,692	$	(15,138	)	$	137,554

		December 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	$	(1,657	)	$	2,913	$	1,256
	–swaptions		(2,594	)		1,325		(1,269	)
	–basis swaps		(1,371	)		1,092		(279	)
Crude oil	–swaps		(4,814	)		4,794		(20	)
	–swaptions		(2,254	)		1,597		(657	)
	–calls		(349	)		349		—
NGLs	–C3 propane spread swaps		(16,040	)		1,913		(14,127	)
	–C5 natural gasoline swaps		(127	)		127		—
Freight	–swaps		—			1,028		1,028
		$	(29,206	)	$	15,138	$	(14,068	)

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 June 30,					Six Months Ended June 30,
		2020			2019		2020			2019
Commodity swaps	$	5,484		$	159,128	$	233,838		$	101,710
Swaptions		(2,019	)		32,383		(1,353	)		29,092
Three-way collars		(6,200	)		—		(17,562	)		—
Collars		2,557			578		2,557			(3,946	)
Calls		(33	)		—		242			—
Basis swaps		(5,180	)		938		16,163			4,353
Freight swaps		(912	)		2,218		(7,013	)		2,305
Total	$	(6,303	)	$	195,245	$	226,872		$	133,514