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Price-Risk Management Price-Risk Management (Notes)
 9 Months Ended
Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Price-Risk Management Activities
(8)          Price-Risk Management Activities

Derivatives are recorded on the condensed 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 September 30, 2023 and 2022, the Company recorded losses of $53.7 million and losses of $1.3 million, respectively, on its commodity derivatives. During the nine months ended September 30, 2023 and 2022, the Company recorded gains of $56.5 million and losses of $162.5 million, respectively, on its commodity derivatives. During the three months ended September 30, 2023 and 2022, the Company recorded losses of $0.9 million and gains of $6.1 million, respectively, related to valuation changes on the 2021 WTI Contingency Payout and 2022 WTI Contingency Payout. During the nine months ended September 30, 2023 and 2022, the Company recorded gains of $1.1 million and gains of $4.7 million, respectively, related to valuation changes on the 2021 WTI Contingency Payout and 2022 WTI Contingency Payout. The Company collected cash payments of $70.7 million and made cash payments of $182.1 million for settled derivative contracts during the nine months ended September 30, 2023 and 2022, respectively.

At September 30, 2023 and December 31, 2022, there was $8.4 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 October 2023 and January 2023, respectively. At September 30, 2023 and December 31, 2022, we also had $3.5 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 October 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 September 30, 2023, there was $50.2 million and $14.2 million in current unsettled derivative assets and long-term unsettled derivative assets, respectively, and $32.8 million and $21.6 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 $10.1 million net fair value asset at September 30, 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 September 30, 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
4Q23707,300 $78.53 
2024 Contracts
1Q24728,000 $77.67 
2Q24754,550 $77.59 
3Q24779,620 $76.48 
4Q24762,100 $76.16 
2025 Contracts
1Q25666,000 $71.60 
2Q25673,400 $71.60 
3Q25680,800 $71.60 
4Q25588,800 $71.29 
2026 Contracts
1Q26315,000 $69.40 
2Q26318,500 $69.40 
3Q26322,000 $69.40 
4Q26230,000 $69.42 
Collar Contracts
2023 Contracts
4Q23302,242 $65.89 $74.54 
2024 Contracts
1Q24319,700 $58.95 $71.74 
2Q24215,000 $61.08 $73.57 
3Q24184,000 $63.50 $75.53 
4Q24184,000 $63.00 $75.35 
2025 Contracts
1Q25238,500 $64.00 $74.62 
2Q25227,500 $60.80 $72.22 
2026 Contracts
1Q2690,000 $64.00 $71.50 
2Q2691,000 $64.00 $71.50 
3Q2692,000 $64.00 $71.50 
3-Way Collar Contracts
2023 Contracts
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 
Oil Basis Swaps
(Argus Cushing (WTI) and Magellan East Houston)		Total Volumes
(MMBtu)		Weighted-Average Price
2023 Contracts
4Q23122,000 $0.80 
2024 Contracts
1Q24364,000 $1.47 
2Q24364,000 $1.47 
3Q24368,000 $1.47 
4Q24368,000 $1.47 
2025 Contracts
1Q25270,000 $1.75 
2Q25273,000 $1.75 
3Q25276,000 $1.75 
4Q25276,000 $1.75 
Calendar Monthly Roll Differential Swaps
2023 Contracts
4Q23122,000 $2.44 
2024 Contracts
1Q24364,000 $0.69 
2Q24364,000 $0.69 
3Q24368,000 $0.69 
4Q24368,000 $0.69 
2025 Contracts
1Q25270,000 $0.40 
2Q25273,000 $0.40 
3Q25276,000 $0.40 
4Q25276,000 $0.40 
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
4Q235,727,000 $4.20 
2024 Contracts
1Q247,686,000 $4.12 
2Q2412,350,000 $3.67 
3Q2412,420,000 $3.78 
4Q2412,420,000 $4.12 
2025 Contracts
1Q259,450,000 $4.25 
2Q259,555,000 $3.71 
3Q2511,960,000 $3.83 
4Q258,740,000 $4.17 
2026 Contracts
1Q269,680,000 $4.48 
2Q269,555,000 $3.56 
3Q269,660,000 $3.74 
4Q269,200,000 $4.13 
Collar Contracts
2023 Contracts
4Q2312,445,000 $3.87 $4.80 
2024 Contracts
1Q249,661,000 $3.94 $5.83 
2Q244,643,000 $3.64 $4.28 
3Q243,878,000 $3.77 $4.76 
4Q243,865,000 $4.01 $5.34 
2025 Contracts
1Q255,130,000 $4.00 $5.32 
2Q254,914,000 $3.25 $3.98 
3Q25920,000 $3.50 $3.99 
4Q25920,000 $3.75 $4.65 
3-Way Collar Contracts
2023 Contracts
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
4Q2313,800,000 $(0.23)
2024 Contracts
1Q2415,470,000 $(0.02)
2Q2415,470,000 $(0.29)
3Q2415,640,000 $(0.26)
4Q2415,640,000 $(0.28)
2025 Contracts
1Q255,400,000 $(0.09)
2Q255,460,000 $(0.26)
3Q255,520,000 $(0.23)
4Q255,520,000 $(0.25)
NGL Swaps (Mont Belvieu)Total Volumes
(Bbls)		Weighted-Average Price
2023 Contracts
4Q23345,000 $32.87 
2024 Contracts
1Q24400,400 $26.30 
2Q24400,400 $26.30 
3Q24404,800 $26.30 
4Q24404,800 $26.30 
2025 Contracts
1Q25270,000 $24.17 
2Q25273,000 $24.17 
3Q25276,000 $24.17 
4Q25276,000 $24.17