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Derivative Instruments
 9 Months Ended
Sep. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
From time to time the Company enters into derivative contracts to economically hedge against the variability in cash flows associated with future sales of production. The Company recognizes its derivative instruments on the balance sheet as either assets or liabilities measured at fair value. The estimated fair value 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 7. Fair Value Measurements.
At September 30, 2022 the Company had outstanding derivative contracts as set forth in the tables below. 
Natural gas derivatives
Weighted Average Hedge Price ($/MMBtu)
Period and Type of ContractAverage Volumes HedgedBasis SwapsSwapsSold PutFloorCeiling
October 2022 - December 2023
Basis Swaps - NGPL TXOK75,000 MMBtus/day$(0.17)
October 2022 - December 2022
Swaps - Henry Hub160,000 MMBtus/day$4.48 
Collars - Henry Hub360,000 MMBtus/day$3.88 $5.45 
Three-way collars - Henry Hub50,000 MMBtus/day$3.00 $4.07 $5.00 
Swaps - WAHA45,000 MMBtus/day$3.41 
January 2023 - December 2023
Swaps - Henry Hub308,000 MMBtus/day$3.49 
Collars - Henry Hub139,000 MMBtus/day$3.62 $4.95 
Three-way collars - Henry Hub12,500 MMBtus/day$3.00 $4.32 $5.00 
Swaps - WAHA40,000 MMBtus/day$2.69 
January 2024 - December 2024
Swaps - Henry Hub310,500 MMBtus/day$3.26 
Collars - Henry Hub50,000 MMBtus/day$3.12 $4.09 
January 2025 - December 2025
Swaps - Henry Hub37,000 MMBtus/day$3.39 
Crude oil derivatives
Period and Type of ContractAverage Volumes HedgedWeighted Average Hedge Price Differential ($/Bbl)
October 2022 - December 2022
NYMEX Roll Swaps55,500 Bbls/day$1.77 
January 2023 - December 2023
NYMEX Roll Swaps12,000 Bbls/day$1.07 
Derivative gains and losses
Cash receipts and payments in the following table reflect the gains or losses on derivative contracts which matured during the applicable period, calculated as the difference between the contract price and the market settlement price of matured contracts. The Company's derivative contracts are settled based upon reported settlement prices on commodity exchanges, with crude oil derivative settlements based on NYMEX West Texas Intermediate ("WTI") pricing and natural gas derivative settlements based primarily on NYMEX Henry Hub pricing. Non-cash gains and losses below represent the change in fair value of derivative instruments which continued to be held at period end and the reversal of previously recognized non-cash gains or losses on
derivative contracts that matured during the period.
 Three months ended September 30,Nine months ended September 30,
In thousands2022202120222021
Cash received (paid) on derivatives:
Crude oil fixed price swaps$— $— $— $(44,462)
Crude oil collars— — — (9,365)
Crude oil NYMEX roll swaps(5,836)(156)(12,908)966 
Natural gas basis swaps (NGPL TXOK)2,843 — $4,335 $— 
Natural gas fixed price swaps (WAHA)(15,536)— (15,536)— 
Natural gas fixed price swaps (HH)(185,463)(31,361)(327,047)(27,411)
Natural gas collars (HH)(22,106)(10,563)$(36,023)$(7,329)
Natural gas 3-way collars (HH)— — $(16,459)$— 
Cash received (paid) on derivatives, net(226,098)(42,080)(403,638)(87,601)
Non-cash gain (loss) on derivatives:
Crude oil collars— — — 227 
Crude oil NYMEX roll swaps19,789 3,506 3,630 180 
Natural gas basis swaps (NGPL TXOK)6,981 — 11,773 — 
Natural gas fixed price swaps (WAHA)2,159 — (11,914)— 
Natural gas fixed price swaps (HH)(52,118)(33,947)(420,613)(68,503)
Natural gas collars (HH)(78,501)(11,411)(168,758)(29,101)
Natural gas 3-way collars (HH)(9,990)(43,178)(19,940)(47,997)
Non-cash gain (loss) on derivatives, net(111,680)(85,030)(605,822)(145,194)
Loss on derivative instruments, net$(337,778)$(127,110)$(1,009,460)$(232,795)
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,” “Derivative assets, noncurrent,” “Derivative liabilities,” and “Derivative liabilities, noncurrent” 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 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 thousandsSeptember 30, 2022December 31, 2021
Commodity derivative assets:
Gross amounts of recognized assets$22,176 $42,903 
Gross amounts offset on balance sheet(5,993)(7,381)
Net amounts of assets on balance sheet16,183 35,522 
Commodity derivative liabilities:
Gross amounts of recognized liabilities(593,693)(8,598)
Gross amounts offset on balance sheet5,993 7,381 
Net amounts of liabilities on balance sheet$(587,700)$(1,217)
The following table reconciles the net amounts disclosed above to the individual financial statement line items in the condensed consolidated balance sheets. 
In thousandsSeptember 30, 2022December 31, 2021
Derivative assets$14,149 $22,334 
Derivative assets, noncurrent2,034 13,188 
Net amounts of assets on balance sheet16,183 35,522 
Derivative liabilities(334,450)(899)
Derivative liabilities, noncurrent(253,250)(318)
Net amounts of liabilities on balance sheet(587,700)(1,217)
Total derivative assets (liabilities), net$(571,517)$34,305