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Price-Risk Management Price-Risk Management (Notes)
 3 Months Ended
Mar. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Price-Risk Management Activities
(8)          Price-Risk Management Activities

Derivatives are recorded on the consolidated 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, 2023 and 2022, the Company recorded gains of $91.2 million and losses of $139.0 million, respectively, on its commodity derivatives. During the three months ended March 31, 2023 and 2022, the Company recorded gains of $1.0 million and losses of $1.2 million, respectively, related to valuation changes on the 2021 WTI Contingency Payout and 2022 WTI Contingency Payout. The Company collected cash payments of $18.7 million and made cash payments of $24.6 million for settled derivative contracts during the three months ended March 31, 2023 and 2022, respectively.

At March 31, 2023 and December 31, 2022, there was $11.8 million and $6.9 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 2023 and January 2023, respectively. At March 31, 2023 and December 31, 2022, we also had $1.0 million and $6.0 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 2023 and January 2023, 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, 2023, there was $80.0 million and $26.6 million in current unsettled derivative assets and long-term unsettled derivative assets, respectively, and $13.5 million and $2.4 million in current and long-term unsettled derivative liabilities, respectively. At December 31, 2022, there was $52.5 million and $24.2 million in current and long-term unsettled derivative assets, respectively, and $40.8 million and $7.7 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 $90.8 million net fair value asset at March 31, 2023, and a $28.2 million net fair value asset at December 31, 2022. 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, 2023:
Oil Derivative Contracts
(NYMEX WTI Settlements)		Total Volumes
(Bbls)		Weighted-Average PriceWeighted-Average Collar Sub Floor PriceWeighted-Average Collar Floor Price Weighted-Average Collar Call Price
Swap Contracts
2023 Contracts
2Q23494,575 $80.75 
3Q23533,980 $77.36 
4Q23569,300 $78.26 
2024 Contracts
1Q24227,500 $80.78 
2Q24254,050 $80.24 
3Q24272,700 $76.91 
4Q24256,100 $75.98 
Collar Contracts
2023 Contracts
2Q23167,949 $53.91 $64.89 
3Q2372,847 $59.27 $66.26 
4Q2372,242 $58.54 $65.13 
2024 Contracts
1Q24137,700 $51.61 $65.86 
2Q2433,000 $45.00 $60.72 
2025 Contracts
1Q2545,000 $62.00 $69.40 
3-Way Collar Contracts
2023 Contracts
2Q2313,260 $44.19 $55.04 $64.53 
3Q239,570 $43.08 $53.41 $63.33 
4Q238,970 $43.08 $53.38 $63.35 
2024 Contracts
1Q248,247 $45.00 $57.50 $67.85 
2Q247,757 $45.00 $57.50 $67.85 
Natural Gas Derivative Contracts
(NYMEX Henry Hub Settlements)		Total Volumes
(MMBtu)		Weighted-Average PriceWeighted-Average Collar Sub Floor PriceWeighted-Average Collar Floor Price Weighted-Average Collar Call Price
Swap Contracts
2023 Contracts
2Q233,816,000 $4.55 
3Q234,816,000 $4.57 
4Q233,887,000 $4.71 
2024 Contracts
1Q242,711,000 $5.15 
2Q247,800,000 $3.95 
3Q247,820,000 $4.03 
4Q247,820,000 $4.35 
2025 Contracts
1Q25900,000 $5.01 
2Q25910,000 $4.12 
3Q25920,000 $4.27 
4Q25920,000 $4.70 
Collar Contracts
2023 Contracts
2Q2312,141,250 $3.28 $4.05 
3Q2311,896,400 $3.43 $4.23 
4Q2312,445,000 $3.87 $4.80 
2024 Contracts
1Q247,841,000 $4.10 $6.19 
2Q242,823,000 $4.05 $4.91 
3Q242,958,000 $4.00 $5.10 
4Q242,945,000 $4.24 $5.63 
2025 Contracts
1Q251,800,000 $4.00 $5.41 
3-Way Collar Contracts
2023 Contracts
2Q23310,400 $2.04 $2.54 $3.01 
3Q23233,100 $2.00 $2.50 $2.95 
4Q23219,200 $2.00 $2.50 $2.94 
2024 Contracts
1Q24198,000 $2.00 $2.50 $3.37 
2Q24188,000 $2.00 $2.50 $3.37 
Natural Gas Basis Derivative Swaps
(East Texas Houston Ship Channel vs. NYMEX Settlements)		Total Volumes
(MMBtu)		Weighted-Average Price
2023 Contracts
2Q2314,560,000 $(0.24)
3Q2314,720,000 $(0.21)
4Q2313,800,000 $(0.23)
2024 Contracts
1Q249,100,000 $(0.01)
2Q249,100,000 $(0.32)
3Q249,200,000 $(0.28)
4Q249,200,000 $(0.31)
Houston Ship Channel Fixed Price Contracts
2023 Contracts
2Q2360,000 $2.64 
NGL Swaps (Mont Belvieu)Total Volumes
(Bbls)		Weighted-Average Price
2023 Contracts
2Q23341,250 $33.12 
3Q23345,000 $32.87 
4Q23345,000 $32.87 
2024 Contracts
1Q24127,400 $29.39 
2Q24127,400 $29.39 
3Q24128,800 $29.39 
4Q24128,800 $29.39