Derivatives (Tables)

9 Months Ended

Sep. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives outstanding

At September 30, 2017, the following derivatives were outstanding:

Term	Commodity	Contracted Volume	Weighted Average  Fixed Price	Contracted Market
Oct'17	Natural gas – swap	70,000 MMBtu/day	$3.038	IF – NYMEX (HH)
Nov’17 – Dec'17	Natural gas – swap	60,000 MMBtu/day	$2.960	IF – NYMEX (HH)
Jan’18 – Dec'18	Natural gas – swap	20,000 MMBtu/day	$3.013	IF – NYMEX (HH)
Nov’17 – Dec'17	Natural gas – basis swap	20,000 MMBtu/day	$(0.215)	IF – NYMEX (HH)
Jan’18 – Mar'18	Natural gas – basis swap	10,000 MMBtu/day	$(0.208)	IF – NYMEX (HH)
Nov’18 – Dec'18	Natural gas – basis swap	10,000 MMBtu/day	$(0.208)	IF – NYMEX (HH)
Oct'17	Natural gas – collar	20,000 MMBtu/day	$2.88 - $3.10	IF – NYMEX (HH)
Oct'17	Natural gas – three-way collar	15,000 MMBtu/day	$2.50 - $2.00 - $3.32	IF – NYMEX (HH)
Nov’17 – Dec'17	Natural gas – three-way collar	25,000 MMBtu/day	$2.90 - $2.30 - $3.59	IF – NYMEX (HH)
Jan'18 – Mar'18	Natural gas – three-way collar	60,000 MMBtu/day	$3.29 - $2.63 - $4.07	IF – NYMEX (HH)
Apr'18 – Dec'18	Natural gas – three-way collar	20,000 MMBtu/day	$3.00 - $2.50 - $3.51	IF – NYMEX (HH)
Oct’17 – Dec'17	Crude oil – three-way collar	3,750 Bbl/day	$49.79 - $39.58 - $60.98	WTI – NYMEX
Jan'18 – Dec'18	Crude oil – three-way collar	2,000 Bbl/day	$47.50 - $37.50 - $56.08	WTI – NYMEX
Jan'18 – Dec'18	Crude oil – swap	2,000 Bbl/day	$50.140	WTI – NYMEX

Subsequent Derivatives Outstanding

After September 30, 2017, the following derivative was entered into:

Term	Commodity	Contracted Volume	Weighted Average  Fixed Price	Contracted Market
Apr'18 – Oct'18	Natural gas – swap	10,000 MMBtu/day	$2.990	IF – NYMEX (HH)
Apr'18 – Sep'18	Liquids – swap (1)	1,000 Bbl/day	$31.164	OPIS – Mont Belvieu

Fair Value of Derivative Instruments and Locations in Balance Sheets

The following tables present the fair values and locations of the derivative transactions recorded in our Unaudited Condensed Consolidated Balance Sheets:

		Derivative Assets
		Fair Value
	Balance Sheet Location	September 30, 2017		December 31, 2016
		(In thousands)
Commodity derivatives:
Current	Current derivative asset	$	1,064	$	—
Long-term	Non-current derivative asset	—		377
Total derivative assets		$	1,064	$	377

		Derivative Liabilities
		Fair Value
	Balance Sheet Location	September 30, 2017		December 31, 2016
		(In thousands)
Commodity derivatives:
Current	Current derivative liability	$	636	$	21,564
Long-term	Non-current derivative liability	282		415
Total derivative liabilities		$	918	$	21,979

Effect of Derivative Instruments Recognized in Statements of Operations, Derivative Instruments

Following is the effect of derivative instruments on the Unaudited Condensed Consolidated Statements of Operations for the three months ended September 30:

Derivatives Instruments	Location of Gain (Loss) Recognized in Income on Derivative	Amount of Gain  (Loss) Recognized in Income on Derivative
		2017			2016
		(In thousands)
Commodity derivatives	Gain (loss) on derivatives (1)	$	(2,614	)	$	6,969
Total		$	(2,614	)	$	6,969

_______________________

(1) Amounts settled during the 2017 and 2016 periods include net proceeds of $0.8 million and net payments of $0.5 million, respectively.

Following is the effect of derivative instruments on the Unaudited Condensed Consolidated Statements of Operations for the nine months ended September 30:

Derivatives Instruments	Location of Gain (Loss) Recognized in Income on Derivative	Amount of Gain (Loss) Recognized in Income on Derivative
		2017		2016
		(In thousands)
Commodity derivatives	Gain (loss) on derivatives (1)	$	21,019	$	(4,774	)
Total		$	21,019	$	(4,774	)

_______________________

(1) Amounts settled during the 2017 and 2016 periods include net payments of $0.7 million and net proceeds of $11.7 million, respectively.