Derivative Activities (Tables)

9 Months Ended

Sep. 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 September 30, 2020, excluding our basis and freight swaps and divestiture contingent consideration which are discussed separately below:

Period	Contract Type	Volume Hedged	Weighted Average Hedge Price
			Swap		Sold Put	Floor	Ceiling
Natural Gas (1)
2020	Swaps	1,133,587 Mmbtu/day	$	2.63
2021	Swaps	510,000 Mmbtu/day	$	2.77
2020	Collars	5,041 Mmbtu/day				$ 2.00	$ 2.50
January – October 2021	Collars	342,237 Mmbtu/day				$ 2.51	$ 3.00
2020	Three-way Collars	79,891 Mmbtu/day			$ 2.23	$ 2.58	$ 3.19
2021	Three-way Collars	240,000 Mmbtu/day			$ 1.99	$ 2.33	$ 2.60
Crude Oil
2020	Swaps	6,000 bbls/day	$	58.02
2021	Swaps	1,000 bbls/day	$	55.00
NGLs (C3-Propane)
2020	Swaps	6,000 bbls/day	$	0.51/gallon
NGLs (NC4-Normal Butane)
2020	Swaps	1,000 bbls/day	$	0.60/gallon
NGLs (C5-Natural Gasoline)
2020	Swaps	2,000 bbls/day	$	0.89/gallon

⁽¹⁾ We also sold natural gas call swaptions of 140,000 Mmbtu/day for 2021 at a weighted average price of $2.88. In addition, we sold natural gas call swaptions of 280,000 bbls per day for 2022 at a weighted average price of $2.81.

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, 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):

		September 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	$	10,083	$	(9,159	)	$	924
	–three-way collars		680		(680	)		—
	–basis swaps		6,620		(3,263	)		3,357
Crude oil	–swaps		14,065		(13,566	)		499
NGLs	–C3 propane spread swaps		2,974		(2,974	)		—
	–C3 propane swaps		101		—			101
	–NC4 normal butane swaps		17		(17	)		—
	−C5 natural gasoline swaps		25		—			25
Freight	−swaps		19		(19	)		—
Divestiture contingent consideration			15,420		—			15,420
		$	50,004	$	(29,678	)	$	20,326

		September 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	$	(33,359	)	$	9,159	$	(24,200	)
	–swaptions		(20,368	)		—		(20,368	)
	–collars		(14,169	)		—		(14,169	)
	–three-way collars		(40,563	)		680		(39,883	)
	–basis swaps		(1,220	)		3,263		2,043
Crude oil	–swaps		—			13,566		13,566
NGLs	–C3 propane spread swaps		(3,503	)		2,974		(529	)
	–NC4 normal butane calls		—			17		17
Freight	–swaps		(1,407	)		19		(1,388	)
		$	(114,589	)	$	29,678	$	(84,911	)

		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 September 30,						Nine Months Ended September 30,
		2020			2019			2020			2019
Commodity swaps	$	(91,425	)	$	60,090		$	142,413		$	161,799
Swaptions		(14,166	)		10,358			(15,520	)		39,451
Three-way collars		(20,705	)		—			(38,267	)		—
Collars		(16,893	)		356			(14,336	)		(3,590	)
Calls		(255	)		(224	)		(12	)		(224	)
Basis swaps		15,587			3,448			31,750			7,801
Freight swaps		2,737			648			(4,276	)		2,953
Divestiture contingent consideration		430			—			430			—
Total	$	(124,690	)	$	74,676		$	102,182		$	208,190