Derivatives (Tables)

9 Months Ended

Sep. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives outstanding

At September 30, 2018, these derivatives were outstanding:

Term	Commodity	Contracted Volume	Weighted Average  Fixed Price	Contracted Market
Oct'18	Natural gas – swap	30,000 MMBtu/day	$3.005	IF – NYMEX (HH)
Nov’18 – Dec'18	Natural gas – swap	20,000 MMBtu/day	$3.013	IF – NYMEX (HH)
Jan'19 – Dec'19	Natural gas – swap	10,000 MMBtu/day	$2.810	IF – NYMEX (HH)
Oct'18	Natural gas – basis swap	10,000 MMBtu/day	$(0.190)	NGPL TEXOK
Oct'18 – Dec'18	Natural gas – basis swap	10,000 MMBtu/day	$(0.678)	PEPL
Oct'18 – Dec'18	Natural gas – basis swap	10,000 MMBtu/day	$(0.568)	NGPL MIDCON
Nov’18 – Dec'18	Natural gas – basis swap	10,000 MMBtu/day	$(0.208)	IF – NYMEX (HH)
Jan'19 – Dec'19	Natural gas – basis swap	20,000 MMBtu/day	$(0.659)	PEPL
Jan'19 – Dec'19	Natural gas – basis swap	10,000 MMBtu/day	$(0.625)	NGL MIDCON
Jan'19 – Dec'19	Natural gas – basis swap	30,000 MMBtu/day	$(0.265)	NGPL TEXOK
Jan'20 – Dec'20	Natural gas – basis swap	30,000 MMBtu/day	$(0.275)	NGPL TEXOK
Oct'18 – Dec'18	Natural gas – three-way collar	20,000 MMBtu/day	$3.00 - $2.50 - $3.51	IF – NYMEX (HH)
Oct'18 – Dec'18	Crude oil – swap	4,000 Bbl/day	$53.52	WTI – NYMEX
Oct'18 – Dec'18	Crude oil – price differential risk	500 Bbl/day	$7.00	LLS/WTI
Oct'18 – Dec'18	Crude oil – three-way collar	2,000 Bbl/day	$47.50 - $37.50 - $56.08	WTI – NYMEX
Jan'19 – Dec'19	Crude oil – three-way collar	4,000 Bbl/day	$61.25 - $51.25 - $72.93	WTI – NYMEX

Subsequent schedule of derivatives outstanding

After September 30, 2018, the following derivatives were entered into:

Term	Commodity	Contracted Volume	Weighted Average  Fixed Price	Contracted Market
Jan'19 – Dec'19	Natural gas – swap	10,000 MMBtu/day	$2.850	IF – NYMEX (HH)
Jan'19 – Dec'19	Natural gas – collar	20,000 MMBtu/day	$2.63 - $3.03	IF – NYMEX (HH)
Jan'19 – Mar'19	Natural gas – three-way collar	10,000 MMBtu/day	$3.00 - $2.75 - $4.35	IF – NYMEX (HH)

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, 2018		December 31, 2017
		(In thousands)
Commodity derivatives:
Current	Current derivative asset	$	—	$	721
Long-term	Non-current derivative asset	—		—
Total derivative assets		$	—	$	721

		Derivative Liabilities
		Fair Value
	Balance Sheet Location	September 30, 2018		December 31, 2017
		(In thousands)
Commodity derivatives:
Current	Current derivative liability	$	13,067	$	7,763
Long-term	Non-current derivative liability	1,542		—
Total derivative liabilities		$	14,609	$	7,763

Effect of Derivative Instruments Recognized in Income Statements, Derivative Instruments

Following is the effect of derivative instruments on the Unaudited Condensed Consolidated Income Statements 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
		2018			2017
		(In thousands)
Commodity derivatives	Loss on derivatives (1)	$	(4,385	)	$	(2,614	)
Total		$	(4,385	)	$	(2,614	)

_______________________

(1) Amounts settled during the 2018 and 2017 periods include net payments of $9.1 million and net proceeds of $0.8 million, respectively.

Following is the effect of derivative instruments on the Unaudited Condensed Consolidated Income Statements 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
		2018			2017
		(In thousands)
Commodity derivatives	Gain (loss) on derivatives (1)	$	(25,608	)	$	21,019
Total		$	(25,608	)	$	21,019

_______________________

(1) Amounts settled during the 2018 and 2017 periods include net payments of $18.0 million and $0.7 million, respectively.