Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2020

Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]

As of September 30, 2020, we had the following outstanding derivative contracts. When aggregating multiple contracts, the weighted-average contract price is shown.


	Collars					Fixed-Price Swaps
Commodity/ Index/ Maturity Period		Quantity (Crude oil - MBbls Natural Gas - BBtu)		Weighted-Average Contract Price				Quantity (Crude Oil - MBbls Gas and Basis- BBtu)	Weighted- Average Contract Price				Fair Value September 30, 2020 (1) (in thousands)
	Floors		Ceilings
Crude Oil
NYMEX

2020		900		$	55.00	$	71.68	3,174	$	58.90			$	71,119
2021		996		35.00		46.22		9,180	46.90				40,547
2022		—		—		—		3,984	40.01				(13,433)
Total Crude Oil		1,896						16,338					$	98,233

Natural Gas
NYMEX
2020		17,308		$	2.02	$	2.34	1,000	$	2.30			$	(6,576)
2021		62,625		2.46		2.86		31,800	2.40				(31,070)
2022		8,700		2.50		2.79		8,700	2.62				(21)






Total Natural Gas		88,633						41,500					$	(37,667)






Basis Protection - Natural Gas
CIG
2020		—		$	—	$	—	17,350	$	(0.48)			$	(4,627)
2021		—		—		—		94,425	(0.46)				(13,433)
2022		—		—		—		17,400	(0.36)				(733)
Waha
2020		—		—		—		1,000	(1.40)				(511)


Total Basis Protection - Natural Gas		—						130,175					$	(19,304)












Commodity Derivatives Fair Value											$	41,262

_____________

(1)Approximately 14 percent of the fair value of our commodity derivative assets and 28 percent of the fair value of our commodity derivative liabilities were measured using significant unobservable inputs (Level 3).

Schedule of Subsequent Events

Subsequent to September 30, 2020, we entered into the following commodity derivative positions covering our natural gas production:


	Collars					Fixed-Price Swaps
Commodity/ Index/ Maturity Period		Quantity (BBtu)		Weighted-Average Contract Price				Quantity (BBtu)	Weighted- Average Contract Price
	Floors		Ceilings
NYMEX
2022		8,700		$	2.50	$	3.00	—	—
Basis Protection
CIG
2022		—		—		—		8,700	$	(0.31)

Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block]

The following table presents the condensed consolidated balance sheet line item and fair value amounts of our derivative instruments as of September 30, 2020 and December 31, 2019:


			Fair Value
Derivative Instruments:		Condensed Consolidated Balance Sheet Line Item	September 30, 2020		December 31, 2019
			(in thousands)
Derivative assets:	Current
	Commodity derivative contracts	Fair value of derivatives	$	138,652	$	27,766


	Basis protection derivative contracts	Fair value of derivatives	—		312



			138,652		28,078
	Non-current
	Commodity derivative contracts	Fair value of derivatives	13,027		3,746





Total derivative assets			$	151,679	$	31,824

Derivative liabilities:	Current
	Commodity derivative contracts	Fair value of derivatives	$	50,969	$	529


	Basis protection derivative contracts	Fair value of derivatives	12,988		2,392



			63,957		2,921
	Non-current
	Commodity derivative contracts	Fair value of derivatives	40,144		692


	Basis protection derivative contracts	Fair value of derivatives	6,316		—



			46,460		692
Total derivative liabilities			$	110,417	$	3,613

The following table presents the impact of our derivative instruments on our condensed consolidated statements of operations:


	Three Months Ended September 30,				Nine Months Ended September 30,
Condensed Consolidated Statement of Operations Line Item	2020		2019		2020		2019
	(in thousands)
Commodity price risk management gain (loss), net
Net settlements	$	66,895	$	1,845	$	227,513	$	(19,800)
Net change in fair value of unsettled derivatives	(134,956)		53,022		18,338		(68,058)
Total commodity price risk management gain (loss), net	$	(68,061)	$	54,867	$	245,851	$	(87,858)

Derivatives Not Designated as Hedging Instruments [Table Text Block]

The following table reflects the impact of netting agreements on gross derivative assets and liabilities:


As of September 30, 2020	Derivative Instruments, Gross		Effect of Master Netting Agreements		Derivative Instruments, Net
	(in thousands)
Derivative assets:
Derivative instruments, at fair value	$	151,679	$	(51,823)	$	99,856

Derivative liabilities:
Derivative instruments, at fair value	$	110,417	$	(51,823)	$	58,594


As of December 31, 2019	Derivative Instruments, Gross		Effect of Master Netting Agreements		Derivative Instruments, Net
	(in thousands)
Derivative assets:
Derivative instruments, at fair value	$	31,824	$	(2,619)	$	29,205

Derivative liabilities:
Derivative instruments, at fair value	$	3,613	$	(2,619)	$	994