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Derivative Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2018
Derivative [Line Items]  
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]
As of June 30, 2018, we had the following outstanding derivative contracts. When aggregating multiple contracts, the weighted average contract price is disclosed.
 
 
Collars
 
Fixed-Price Swaps
 
 
Commodity/ Index/
Maturity Period
 
Quantity
(Crude oil -
MBls
Natural Gas - BBtu)
 
Weighted-Average
Contract Price
 
Quantity (Crude Oil - MBbls
Gas and Basis-
BBtu
 Propane - MBbls)
 
Weighted-
Average
Contract
Price
 
Fair Value
June 30,
2018 (1)
(in thousands)
 
 
Floors
 
Ceilings
 
 
 
Crude Oil
 
 
 
 
 
 
 
 
 
 
 
 
NYMEX
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
1,106.0

 
$
46.01

 
$
57.11

 
5,636.0

 
$
52.34

 
$
(117,210
)
2019
 
1,400.0

 
53.57

 
65.55

 
8,400.0

 
53.86

 
(99,002
)
2020
 
—

 
—

 
—

 
600.0

 
62.50

 
343

Total Crude Oil
 
2,506.0

 
 
 
 
 
14,636.0

 
 
 
$
(215,869
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas
 
 
 
 
 
 
 
 
 
 
 
 
NYMEX
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
240.0

 
$
3.00

 
$
3.90

 
27,715.0

 
$
2.94

 
$
(541
)
2019
 
—

 
—

 
—

 
8,004.0

 
2.78

 
(218
)
Dominion South
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
—

 
—

 
—

 
399.0

 
2.12

 
12

2019
 
—

 
—

 
—

 
256.6

 
2.13

 
7

Total Natural Gas
 
240.0

 
 
 
 
 
36,396.2

 
 
 
$
(740
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Basis Protection - Crude Oil
 
 
 
 
 
 
 
 
 
 
 
 
Midland Cushing
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
—

 
$
—

 
$
—

 
343.9

 
$
(0.10
)
 
$
4,374

Total Basis Protection - Crude Oil
 
—

 
 
 
 
 
343.9

 
 
 
$
4,374

 
 
 
 
 
 
 
 
 
 
 
 
 
Basis Protection - Natural Gas
 
 
 
 
 
 
 
 
 
 
 
 
CIG
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
—

 
$
—

 
$
—

 
19,612.0

 
$
(0.42
)
 
$
6,440

2019
 
—

 
—

 
—

 
7,924.0

 
(0.88
)
 
(369
)
Waha
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
—

 
—

 
—

 
3,425.0

 
(0.50
)
 
2,842

Total Basis Protection - Natural Gas
 
—

 
 
 
 
 
30,961.0

 
 
 
$
8,913

 
 
 
 
 
 
 
 
 
 
 
 
 
Propane
 
 
 
 
 
 
 
 
 
 
 
 
Mont Belvieu
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
—

 
$
—

 
$
—

 
333.4

 
$
33.97

 
$
(1,882
)
Total Propane
 
—

 
 
 
 
 
333.4

 
 
 
$
(1,882
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Rollfactor (2)
 
 
 
 
 
 
 
 
 
 
 
 
Crude Oil CMA
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
—

 
$
—

 
$
—

 
2,934.3

 
$
0.13

 
$
(3,014
)
Total Rollfactor
 
—

 
 
 
 
 
2,934.3

 
 
 
$
(3,014
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity Derivatives Fair Value
 
 
 
 
 
 
 
$
(208,218
)
_____________
(1)
Approximately 29.9 percent of the fair value of our commodity derivative assets and 10.5 percent of the fair value of our commodity derivative liabilities were measured using significant unobservable inputs (Level 3).
(2)
These positions hedge the timing risk associated with our physical sales. We generally sell crude oil for the delivery month at a sales price based on the average NYMEX West Texas Intermediate price during that month, plus an adjustment calculated as a spread between the weighted average prices of the delivery month, the next month and the following month during the period when the delivery month is the first month.

 [1],[2]
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block]
The following table presents the balance sheet location and fair value amounts of our derivative instruments on the condensed consolidated balance sheets:
 
 
 
 
 
Fair Value
Derivative Instruments:
 
Condensed Consolidated Balance Sheet Line Item
 
June 30, 2018
 
December 31, 2017
 
 
 
 
 
(in thousands)
Derivative assets:
Current
 
 
 
 
 
 
 
Commodity derivative contracts
 
Fair value of derivatives
 
$
1,161

 
$
7,340

 
Basis protection derivative contracts
 
Fair value of derivatives
 
13,656

 
6,998

 
 
 
 
 
14,817

 
14,338

 
Non-current
 
Fair value of derivatives
 
—

 
—

Total derivative assets
 
 
 
$
14,817

 
$
14,338

 
 
 
 
 
 
 
 
Derivative liabilities:
Current
 
 
 
 
 
 
 
Commodity derivative contracts
 
Fair value of derivatives
 
$
183,369

 
$
77,999

 
Basis protection derivative contracts
 
Fair value of derivatives
 
222

 
234

 
Rollfactor derivative contracts
 
Fair value of derivatives
 
3,014

 
1,069

 
 
 
 
 
186,605

 
79,302

 
Non-current
 
 
 
 
 
 
 
Commodity derivative contracts
 
Fair value of derivatives
 
36,283

 
22,343

 
Basis protection derivative contracts
 
Fair value of derivatives
 
147

 
—

 
 
 
 
 
36,430

 
22,343

Total derivative liabilities
 
 
 
$
223,035

 
$
101,645


    
The following table presents the impact of our derivative instruments on our condensed consolidated statements of operations:
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
Condensed Consolidated Statement of Operations Line Item
 
2018
 
2017
 
2018
 
2017
 
 
(in thousands)
Commodity price risk management gain (loss), net
 
 
 
 
 
 
 
 
Net settlements
 
$
(16,408
)
 
$
12,015

 
$
(42,446
)
 
$
12,566

Net change in fair value of unsettled derivatives
 
(99,718
)
 
45,917

 
(120,920
)
 
126,070

Total commodity price risk management gain (loss), net
 
$
(116,126
)
 
$
57,932

 
$
(163,366
)
 
$
138,636

 
 
 
 
 
 
 
 
 
Derivatives Not Designated as Hedging Instruments [Table Text Block]
The following table presents the balance sheet location and fair value amounts of our derivative instruments on the condensed consolidated balance sheets:
 
 
 
 
 
Fair Value
Derivative Instruments:
 
Condensed Consolidated Balance Sheet Line Item
 
June 30, 2018
 
December 31, 2017
 
 
 
 
 
(in thousands)
Derivative assets:
Current
 
 
 
 
 
 
 
Commodity derivative contracts
 
Fair value of derivatives
 
$
1,161

 
$
7,340

 
Basis protection derivative contracts
 
Fair value of derivatives
 
13,656

 
6,998

 
 
 
 
 
14,817

 
14,338

 
Non-current
 
Fair value of derivatives
 
—

 
—

Total derivative assets
 
 
 
$
14,817

 
$
14,338

 
 
 
 
 
 
 
 
Derivative liabilities:
Current
 
 
 
 
 
 
 
Commodity derivative contracts
 
Fair value of derivatives
 
$
183,369

 
$
77,999

 
Basis protection derivative contracts
 
Fair value of derivatives
 
222

 
234

 
Rollfactor derivative contracts
 
Fair value of derivatives
 
3,014

 
1,069

 
 
 
 
 
186,605

 
79,302

 
Non-current
 
 
 
 
 
 
 
Commodity derivative contracts
 
Fair value of derivatives
 
36,283

 
22,343

 
Basis protection derivative contracts
 
Fair value of derivatives
 
147

 
—

 
 
 
 
 
36,430

 
22,343

Total derivative liabilities
 
 
 
$
223,035

 
$
101,645


    
The following table presents the impact of our derivative instruments on our condensed consolidated statements of operations:
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
Condensed Consolidated Statement of Operations Line Item
 
2018
 
2017
 
2018
 
2017
 
 
(in thousands)
Commodity price risk management gain (loss), net
 
 
 
 
 
 
 
 
Net settlements
 
$
(16,408
)
 
$
12,015

 
$
(42,446
)
 
$
12,566

Net change in fair value of unsettled derivatives
 
(99,718
)
 
45,917

 
(120,920
)
 
126,070

Total commodity price risk management gain (loss), net
 
$
(116,126
)
 
$
57,932

 
$
(163,366
)
 
$
138,636

 
 
 
 
 
 
 
 
 


Net settlements of commodity derivatives and net change in fair value of unsettled derivatives decreased for the three and six months ended June 30, 2018 as compared to the three and six months ended June 30, 2017 as a result of the increase in future commodity prices during the first half of 2018 compared to a decrease during the first half of 2017. Our decrease in net settlements for the three months ended June 30, 2018 was partially offset by an $11.3 million realized gain on the early settlement of certain commodity derivative basis protection positions, including $10.3 million for the early settlement of crude oil basis protection instruments and $1.0 million for the early settlement of natural gas basis protection instruments, both for our Delaware Basin operations. The volumes associated with these instruments were impacted by certain marketing agreements entered into during the three months ended June 30, 2018 which eliminated the underlying sale price variability, and therefore there was no longer a variable to hedge.

All of our financial derivative agreements contain master netting provisions that provide for the net settlement of all contracts through a single payment in the event of early termination. We have elected not to offset the fair value positions recorded on our condensed consolidated balance sheets.

The following table reflects the impact of netting agreements on gross derivative assets and liabilities:
As of June 30, 2018
 
Derivative Instruments, Gross
 
Effect of Master Netting Agreements
 
Derivative Instruments, Net
 
 
(in thousands)
Asset derivatives:
 
 
 
 
 
 
Derivative instruments, at fair value
 
$
14,817

 
$
(14,752
)
 
$
65

 
 
 
 
 
 
 
Liability derivatives:
 
 
 
 
 
 
Derivative instruments, at fair value
 
$
223,035

 
$
(14,752
)
 
$
208,283

 
 
 
 
 
 
 

As of December 31, 2017
 
Derivative Instruments, Gross
 
Effect of Master Netting Agreements
 
Derivative Instruments, Net
 
 
(in thousands)
Asset derivatives:
 
 
 
 
 
 
Derivative instruments, at fair value
 
$
14,338

 
$
(14,173
)
 
$
165

 
 
 
 
 
 
 
Liability derivatives:
 
 
 
 
 
 
Derivative instruments, at fair value
 
$
101,645

 
$
(14,173
)
 
$
87,472

 
 
 
 
 
 
 
[1] Approximately 29.9 percent of the fair value of our commodity derivative assets and 10.5 percent of the fair value of our commodity derivative liabilities were measured using significant unobservable inputs (Level 3).
[2] These positions hedge the timing risk associated with our physical sales. We generally sell crude oil for the delivery month at a sales price based on the average NYMEX West Texas Intermediate price during that month, plus an adjustment calculated as a spread between the weighted average prices of the delivery month, the next month and the following month during the period when the delivery month is the first month.