XML 27 R14.htm IDEA: XBRL DOCUMENT v3.22.1
Price-Risk Management Price-Risk Management (Notes)
 3 Months Ended
Mar. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Price-Risk Management Activities
(8)          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 “Gain (loss) on commodity derivatives, net” on the accompanying condensed consolidated statements of operations. The Company's price-risk management policy is to use derivative instruments to protect against declines in oil and natural gas prices, primarily through the purchase of commodity price swaps and collars as well as basis swaps.

During the three months ended March 31, 2022 and 2021, the Company recorded losses of $139.0 million and $18.3 million, respectively, on its commodity derivatives. The Company made cash payments of $24.6 million and $3.1 million for settled derivative contracts during the three months ended March 31, 2022 and 2021, respectively.

At March 31, 2022 and December 31, 2021, there was $0.3 million and $0.9 million, respectively, in receivables for settled derivatives which were included on the accompanying condensed consolidated balance sheet in “Accounts receivable, net” and were subsequently collected in April 2022 and January 2022, respectively. At March 31, 2022 and December 31, 2021, we also had $15.0 million and $6.4 million, respectively, in payables for settled derivatives which were included on the accompanying condensed consolidated balance sheet in “Accounts payable and accrued liabilities” and were subsequently paid in April 2022 and January 2022, respectively.

The fair values of our swap contracts are computed using observable market data whereas our collar contracts are valued using a Black-Scholes pricing model. At March 31, 2022, there was $1.7 million and less than $0.1 million in current unsettled derivative assets and long-term unsettled derivative assets, respectively, and $140.9 million and $19.1 million in current and long-term unsettled derivative liabilities, respectively. At December 31, 2021, there was $2.8 million and $0.2 million in current and long-term unsettled derivative assets, respectively, and $47.5 million and $8.6 million in current and long-term unsettled derivative liabilities, respectively.

The Company uses an International Swap and Derivatives Association master agreement for our 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 has elected to not offset the asset and liability fair value amounts of its derivatives on the accompanying condensed consolidated balance sheet. Under the right of set-off, there was a $158.3 million net fair value liability at March 31, 2022, and a $53.0 million net fair value liability at December 31, 2021. For further discussion related to the fair value of the Company's derivatives, refer to Note 9 of these Notes to Condensed Consolidated Financial Statements.
The following tables summarize the weighted-average prices as well as future production volumes for our future derivative contracts in place as of March 31, 2022:
Oil Derivative Contracts
(New York Mercantile Exchange (“NYMEX”) WTI Settlements)		Total Volumes
(Bbls)		Weighted-Average PriceWeighted-Average Collar Floor Price Weighted-Average Collar Call Price
Swap Contracts
2022 Contracts
2Q22136,500 $56.66 
3Q22276,600 $53.27 
4Q22276,000 $63.97 
2023 Contracts
1Q23194,675 $69.12 
2Q23114,325 $77.80 
3Q23122,980 $71.81 
4Q23117,300 $73.92 
Collar Contracts
2022 Contracts
2Q22161,350 $48.21 $55.16 
3Q2246,000 $70.00 $75.40 
4Q2246,000 $68.00 $73.60 
2023 Contracts
1Q2345,000 $65.00 $72.80 
2Q23111,475 $59.27 $66.32 
3Q2346,000 $63.00 $69.10 
4Q2346,000 $62.00 $67.55 
2024 Contracts
1Q2436,400 $70.00 $80.15 
Natural Gas Derivative Contracts
(NYMEX Henry Hub Settlements)		Total Volumes
(MMBtu)		Weighted-Average PriceWeighted-Average Collar Floor Price Weighted-Average Collar Call Price
Swap Contracts
2022 Contracts
2Q224,395,000 $3.20 
3Q224,452,100 $3.13 
4Q222,760,000 $3.14 
Collar Contracts
2022 Contracts
2Q226,156,500 $2.29 $2.74 
3Q227,659,000 $2.81 $3.23 
4Q228,685,076 $2.87 $3.43 
2023 Contracts
1Q2310,147,000 $3.21 $4.21 
2Q238,315,550 $2.89 $3.50 
3Q237,999,400 $3.10 $3.69 
4Q236,785,000 $3.37 $4.11 
2024 Contracts
1Q243,185,000 $3.50 $5.34 
Natural Gas Basis Derivative Swaps
(East Texas Houston Ship Channel vs. NYMEX Settlements)		Total Volumes
(MMBtu)		Weighted-Average Price
2022 Contracts
2Q223,640,000 $(0.051)
3Q223,680,000 $(0.043)
4Q223,680,000 $(0.048)
Oil Basis Swaps
(Argus Cushing (WTI) and Magellan East Houston)		Total Volumes (Bbls)Weighted-Average Price
Calendar Monthly Roll Differential Swaps
2022 Contracts
2Q22309,400 $0.55 
3Q22312,800 $0.62 
4Q22266,800 $0.19 
NGL Swaps (Mont Belvieu)Total Volumes
(Bbls)		Weighted-Average Price
2022 Contracts
2Q22182,000 $30.49 
3Q22207,000 $30.79 
4Q22207,000 $30.74 
2023 Contracts
1Q2322,500 $31.77 
2Q2322,750 $31.77 
3Q2323,000 $28.04 
4Q2323,000 $28.04