Price-Risk Management Activities

Derivatives are recorded on the balance sheet at fair value with changes in fair value recognized in earnings. The changes in the fair value of our derivatives are recognized in "Price-risk management and other, net" on the accompanying consolidated statements of operations. We have a price-risk management policy to use derivative instruments to protect against declines in oil and natural gas prices, mainly through the purchase of price swaps and collars.

For the period of April 23, 2016 through December 31, 2016 (successor) we recognized a $19.7 million loss relating to our derivative activities. For the years ended December 31, 2015 and 2014 (predecessor) we recognized a $0.2 million and $1.3 million gain, respectively. The Company made net cash payments of $1.9 million for settled derivative contracts during the period of April 23, 2016 through December 31, 2016 (successor). For the years ended December 31, 2015 and 2014 (predecessor) we received net cash payments of $2.5 million and made net cash payments of $1.1 million, respectively, for settled derivative contracts. There were no derivative instruments outstanding during the period of January 1, 2016 through April 22, 2016 (predecessor).

At December 31, 2016 we had $0.4 million in receivables for settled derivatives which were recognized on the accompanying consolidated balance sheet in “Accounts receivable” and were subsequently collected in January 2017. At December 31, 2016 we had $1.8 million in payables for settled derivatives which were recognized on the accompanying consolidated balance sheet in "Accounts payable and accrued liabilities" and were subsequently paid in January 2017.

The fair values of our derivatives are computed using commonly accepted industry-standard models and are periodically verified against quotes from brokers. At December 31, 2016 there was $0.5 million in current unsettled derivative assets, while our long-term unsettled derivative assets were not material. At December 31, 2016 there was $15.8 million and $1.0 million in current and long-term unsettled derivative liabilities, respectively.

The Company uses an International Swap and Derivatives Association "ISDA" master agreement for all derivative contracts. This is an industry standardized contract containing the general conditions of our derivative transactions including provisions relating to netting derivative settlement payments under certain circumstances (such as default). For reporting purposes, the Company does not offset the asset and liability fair value amounts of its derivatives on the accompanying balance sheets. Under the right of set-off, there was a $16.4 million net fair value liability at December 31, 2016. For further discussion related to the fair value of the Company's derivatives, refer to Note 11 of these consolidated financial statements.

The following table summarizes the weighted average prices as well as future production volumes for our unsettled derivative contracts in place as of December 31, 2016.



Oil Derivative Swaps (NYMEX WTI Settlements)	Total Volumes (Bbls)	Weighted Average Price
2017 Contracts
1Q17	106,245	$	48.04
2Q17	97,401	$	48.13
3Q17	90,000	$	48.16
4Q17	84,798	$	48.18



Natural Gas Derivative Contracts (NYMEX Henry Hub Settlements)	Total Volumes (MMBtu)	Weighted Average Swap Price		Weighted Average Collar Floor Price		Weighted Average Collar Call Price
Swap Contracts
1Q18	4,395,000	$	3.47

1Q17	4,500,000	$	3.13
2Q17	5,420,005	$	2.96
3Q17	5,104,999	$	2.98
4Q17	3,725,001	$	2.92

Collar Contracts
1Q17	550,000			$	3.300	$	3.900
2Q17	2,400,000			$	3.050	$	3.545
3Q17	2,865,000			$	3.050	$	3.585
4Q17	3,102,000			$	3.100	$	3.715



Natural Gas Basis Derivative Swaps (East Texas Houston Ship Channel Settlements)	Total Volumes (MMBtu)	Weighted Average Price
2018 Contracts
1Q18	1,500,000	$	(0.08	)

2017 Contracts
1Q17	5,050,000	$	(0.08	)
2Q17	7,820,005	$	(0.03	)
3Q17	7,969,999	$	(0.02	)
4Q17	6,827,001	$	(0.04	)