Derivative Instruments

12 Months Ended

Dec. 31, 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. At December 31, 2019, the Company had no outstanding commodity derivative contracts.

The Company recognizes its derivative instruments, if any, on the balance sheet as either assets or liabilities measured at fair value. 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.

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. The Company's natural gas derivatives were settled based upon reported NYMEX Henry Hub settlement prices. Non-cash gains and losses below represent the change in fair value of derivative instruments which continued to be held at period end, if any, and the reversal of previously recognized non-cash gains or losses on derivative contracts that matured during the period.

	Year ended December 31,
In thousands	2019			2018			2017
Cash received (paid) on derivatives:
Natural gas fixed price swaps	$	58,836		$	(36,939	)	$	40,095
Natural gas collars	5,859			—			(10,539		)
Cash received (paid) on derivatives, net	64,695			(36,939		)	29,556
Non-cash gain (loss) on derivatives:
Natural gas fixed price swaps	(10,130		)	7,527			18,960
Natural gas collars	(5,482		)	5,482			43,131
Non-cash gain (loss) on derivatives, net	(15,612		)	13,009			62,091
Gain (loss) on natural gas derivatives, net	$	49,083		$	(23,930	)	$	91,647

Balance sheet offsetting of derivative assets and liabilities

The Company’s derivative contracts are recorded at fair value in the 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 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 consolidated balance sheets for the periods presented, all at fair value.

	December 31,
In thousands	2019		2018
Commodity derivative assets:
Gross amounts of recognized assets	$	—	$	16,789
Gross amounts offset on balance sheet	—		(1,177		)
Net amounts of assets on balance sheet	—		15,612
Commodity derivative liabilities:
Gross amounts of recognized liabilities	—		(1,177		)
Gross amounts offset on balance sheet	—		1,177
Net amounts of liabilities on balance sheet	$	—	$	—

The following table reconciles the net amounts disclosed above to the individual financial statement line items in the consolidated balance sheets. 

	December 31,
In thousands	2019		2018
Derivative assets	$	—	$	15,612
Noncurrent derivative assets	—		—
Net amounts of assets on balance sheet	—		15,612
Derivative liabilities	—		—
Noncurrent derivative liabilities	—		—
Net amounts of liabilities on balance sheet	—		—
Total derivative assets, net	$	—	$	15,612