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Derivative Instruments
 9 Months Ended
Sep. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
Natural gas derivatives
From time to time the Company has entered into natural gas swap and collar derivative contracts to economically hedge against the variability in cash flows associated with future sales of natural gas production. The Company recognizes its derivative instruments on the balance sheet as either assets or liabilities measured at fair value. The Company has not designated its derivatives as hedges for accounting purposes and, as a result, marks such derivative instruments to fair value and recognizes the changes in fair value in the unaudited condensed consolidated statements of comprehensive income under the caption “Gain (loss) on natural gas derivatives, net”.
The Company's natural gas derivative contracts are settled based upon reported NYMEX Henry Hub settlement prices. The estimated fair value of derivatives is based upon various factors, including commodity exchange prices, over-the-counter quotations and, in the case of collars, volatility, the risk-free interest rate, and the time to expiration. The calculation of the fair value of collars requires the use of an option-pricing model. See Note 6. Fair Value Measurements.
At September 30, 2019 the Company had outstanding natural gas derivative contracts as set forth in the table below. 
 
 
 
 
 
 
Collars
 
 
 
 
 
 
Floors
 
Ceilings
 
 
 
 
Swaps Weighted Average Price
 
Range
 
Weighted Average Price
 
Range
 
Weighted Average Price
Period and Type of Contract
 
MMBtus
 
October 2019 - December 2019
 
 
 
 
 
 
 
 
 
 
 
 
Swaps - Henry Hub
 
31,734,000

 
$
2.85

 
 
 
 
 
 
 
 
November 2019 - December 2019
 
 
 
 
 
 
 
 
 
 
 
 
Collars - Henry Hub
 
18,300,000

 
 
 
$2.50 - $2.55
 
$
2.52

 
$3.00 - $3.01
 
$
3.00


Natural gas derivative gains and losses
Cash receipts and payments in the following table reflect the gain or loss on derivative contracts which matured during the period, calculated as the difference between the contract price and the market settlement price of matured contracts. Non-cash gains and losses below represent the change in fair value of derivative instruments which continue to be held at period end and the reversal of previously recognized non-cash gains or losses on derivative contracts that matured during the period.
 
 
Three months ended September 30,
 
Nine months ended September 30,
In thousands
 
2019
 
2018
 
2019
 
2018
Cash received (paid) on derivatives:
 
 
 
 
 
 
 
 
Natural gas fixed price swaps
 
$
30,484

 
$
(1,477
)
 
$
46,799

 
$
7,477

Natural gas collars
 
—

 
—

 
5,417

 
—

Cash received (paid) on derivatives, net
 
30,484

 
(1,477
)
 
52,216

 
7,477

Non-cash gain (loss) on derivatives:
 
 
 
 
 
 
 
 
Natural gas fixed price swaps
 
(32,606
)
 
(548
)
 
3,468

 
(12,013
)
Natural gas collars
 
3,317

 
—

 
(2,165
)
 
—

Non-cash gain (loss) on derivatives, net
 
(29,289
)
 
(548
)
 
1,303

 
(12,013
)
Gain (loss) on natural gas derivatives, net
 
$
1,195

 
$
(2,025
)
 
$
53,519

 
$
(4,536
)

Balance sheet offsetting of derivative assets and liabilities
The Company’s derivative contracts are recorded at fair value in the condensed consolidated balance sheets under the captions “Derivative assets”, “Noncurrent derivative assets”, “Derivative liabilities”, and “Noncurrent derivative liabilities”, as applicable. Derivative assets and liabilities with the same counterparty that are subject to contractual terms which provide for net settlement are reported on a net basis in the condensed consolidated balance sheets.
The following table presents the gross amounts of recognized natural gas derivative assets and liabilities, as applicable, the amounts offset under netting arrangements with counterparties, and the resulting net amounts presented in the condensed consolidated balance sheets for the periods presented, all at fair value. 
In thousands
 
September 30, 2019
 
December 31, 2018
Commodity derivative assets:
 
 
 
 
Gross amounts of recognized assets
 
$
23,456

 
$
16,789

Gross amounts offset on balance sheet
 
(6,526
)
 
(1,177
)
Net amounts of assets on balance sheet
 
16,930

 
15,612

Commodity derivative liabilities:
 
 
 
 
Gross amounts of recognized liabilities
 
(6,541
)
 
(1,177
)
Gross amounts offset on balance sheet
 
6,526

 
1,177

Net amounts of liabilities on balance sheet
 
$
(15
)
 
$
—

 
The following table reconciles the net amounts disclosed above to the individual financial statement line items in the condensed consolidated balance sheets. 
In thousands
 
September 30, 2019
 
December 31, 2018
Derivative assets
 
$
16,930

 
$
15,612

Noncurrent derivative assets
 
—

 
—

Net amounts of assets on balance sheet
 
16,930

 
15,612

Derivative liabilities
 
(15
)
 
—

Noncurrent derivative liabilities
 
—

 
—

Net amounts of liabilities on balance sheet
 
(15
)
 
—

Total derivative assets, net
 
$
16,915

 
$
15,612