Derivative Activities (Tables)

3 Months Ended

Mar. 31, 2021

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, 2021, 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)
2021	Swaps	550,000 Mmbtu/day	$	2.76
April – October 2021	Collars	360,000 Mmbtu/day					$ 2.52		$ 3.00
2021	Three-way Collars	240,000 Mmbtu/day			$ 1.99		$ 2.33		$ 2.60
Crude Oil (1)
2021	Swaps	6,165 bbls/day	$	51.73
January – September 2022	Swaps	1,661 bbls/day	$	56.70
NGLs (C3-Propane)
April – September 2021	Swaps	4,311 bbls/day	$	0.70/gallon
April – June 2021	Collars	5,000 bbls/day				$	0.50/gallon	$	0.61/gallon
NGLs (NC4-Normal Butane)
April – June 2021	Swaps	2,000 bbls/day	$	0.82/gallon
NGLs (C5-Natural Gasoline)
April – September 2021	Swaps	3,828 bbls/day	$	1.05/gallon

⁽¹⁾ We also sold natural gas call swaptions of 280,000 Mmbtu/day for 2022 at a weighted average price of $2.81. In addition, we sold oil call swaptions of 1,000 bbls per day for 2022 at a weighted average price of $54.00.

Combined Fair Value of Derivatives, by Consolidated Balance Sheets

The combined fair value of derivatives included in the accompanying consolidated balance sheets as of March 31, 2021 and December 31, 2020 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, 2021
		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	$	12,881	$	(10,200	)	$	2,681
	–swaptions		—		(1,325	)		(1,325	)
	–collars		1,029		(582	)		447
	–three-way collars		228		—			228
	–basis swaps		12,156		(5,252	)		6,904
Crude oil	–swaps		1,105		(665	)		440
NGLs	–C3 propane spread swaps		4,376		(4,376	)		—
	–C3 propane swaps		192		(192	)		—
	−C5 natural gasoline swaps		250		(250	)		—
Freight	−swaps		132		(44	)		88
Divestiture contingent consideration			19,890		—			19,890
		$	52,239	$	(22,886	)	$	29,353

		March 31, 2021
		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	$	(9,164	)	$	10,200	$	1,036
	–swaptions		(5,823	)		1,325		(4,498	)
	–collars		—			582		582
	–three-way collars		(14,258	)		—		(14,258	)
	–basis swaps		(2,639	)		5,252		2,613
Crude oil	–swaps		(10,857	)		665		(10,192	)
	–swaptions		(1,323	)		—		(1,323	)
NGLs	–C3 propane spread swaps		(3,904	)		4,376		472
	–C3 propane swaps		(4,989	)		192		(4,797	)
	–C3 collars		(4,618	)		—		(4,618	)
	–NC4 normal swaps		(839	)		—		(839	)
	–C5 natural gasoline swaps		(8,743	)		250		(8,493	)
Freight	–swaps		(7	)		44		37
		$	(67,164	)	$	22,886	$	(44,278	)

		December 31, 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	$	33,559	$	(16,821	)	$	16,738
	–collars		7,016		(2,329	)		4,687
	–three-way collars		535		(6,139	)		(5,604	)
	–basis swaps		7,894		(3,502	)		4,392
Crude oil	–swaps		2,465		(829	)		1,636
NGLs	–C3 propane spread swaps		4,863		(4,863	)		—
	–C3 propane collars		—		(107	)		(107	)
Freight	–swaps		2,310		—			2,310
Divestiture contingent consideration			15,960		—			15,960
		$	74,602	$	(34,590	)	$	40,012

		December 31, 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	$	(10,120	)	$	16,821	$	6,701
	–swaptions		(9,803	)		—		(9,803	)
	–collars		—			2,329		2,329
	–three-way collars		(18,353	)		6,139		(12,214	)
	–basis swaps		(4,197	)		3,502		(695	)
Crude oil	–swaps		(5,471	)		829		(4,642	)
NGLs	–C3 propane spread swaps		(4,069	)		4,863		794
	–C3 propane swaps		(8,243	)		—		(8,243	)
	–C3 propane collars		(3,086	)		107		(2,979	)
	–C5 natural gasoline swaps		(4,897	)		—		(4,897	)
	–C5 natural gasoline calls		(546	)		—		(546	)
	–NC4 butane swaps		(651	)		—		(651	)
	–NC4 butane collars		(401	)		—		(401	)
Freight	–swaps		(1,206	)		—		(1,206	)
		$	(71,043	)	$	34,590	$	(36,453	)

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,
		2021			2020
Commodity swaps	$	(52,764	)	$	228,354
Swaptions		2,657			666
Three-way collars		873			(11,362	)
Collars		(13,288	)		—
Calls		(775	)		275
Basis swaps		2,155			21,343
Freight swaps		(667	)		(6,101	)
Divestiture contingent consideration		3,930			—
Total	$	(57,879	)	$	233,175