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DERIVATIVES
 12 Months Ended
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES DERIVATIVES
Commodity Derivatives

We have entered into various types of derivative transactions covering some of our projected natural gas, NGLs, and oil production. These transactions are intended to reduce our exposure to market price volatility by setting the price(s) we will receive for that production. Our decisions on the price(s), type, and quantity of our production subject to a derivative contract are based, in part, on our view of current and future market conditions as well as certain requirements stipulated in the Exit credit agreement. As of December 31, 2022, our commodity derivative transactions consisted of the following types of hedges:

•Basis/Differential Swaps. We receive or pay the NYMEX settlement value plus or minus a fixed delivery point price for the commodity and pay or receive the published index price at the specified delivery point. We use basis/differential swaps to hedge the price risk between NYMEX and its physical delivery points.
•Swaps. We receive or pay a fixed price for the commodity and pay or receive a floating market price to the counterparty. The fixed-price payment and the floating-price payment are netted, resulting in a net amount due to or from the counterparty.
•Collars. A collar contains a fixed floor price (put) and a ceiling price (call). If the market price exceeds the call strike price or falls below the put strike price, we receive the fixed price and pay the market price. If the market price is between the call and the put strike price, no payments are due from either party. 

We do not engage in derivative transactions for speculative purposes. We are not required to post any cash collateral with our counterparties and no collateral has been posted as of December 31, 2022.

The following non-designated hedges were outstanding as of December 31, 2022:

Remaining TermCommodityContracted Volume
Weighted Average 
Fixed Price for Swaps
Contracted Market
Jan'23 - Feb'23Natural gas - swap
27,627 MMBtu/day
$9.14IF - NYMEX (HH)
Jan'23 - Dec'23Natural gas - swap
22,000 MMBtu/day
$2.46IF - NYMEX (HH)
Jan'23 - Mar'23Natural gas - basis swap
25,000 MMBtu/day
$(0.17)NGLP TEXOK
Jan'23 - Feb'23Crude oil - swap
1,339 Bbl/day
$95.40WTI - NYMEX
Jan'23 - Dec'23Crude oil - swap
1,300 Bbl/day
$43.60WTI - NYMEX

Warrants

Prior to the determination of the initial exercise price, we recognized the fair value of the warrants as a derivative liability on our consolidated balance sheets with changes in the liability reported as loss on change in fair value of warrants in our consolidated statements of operations. On April 7, 2022, the Company delivered notice of the initial $63.74 exercise price resulting in the warrants meeting the definition of an equity instrument. Accordingly, we recognized the change in the fair value of the warrant liability in our unaudited condensed consolidated statements of operations and reclassified the $49.1 million warrant liability to capital in excess of par value on the unaudited condensed consolidated balance sheets as of April 7, 2022. The warrants will continue to be reported as capital in excess of par value and are no longer subject to future fair value adjustments.
The following tables present the recognized liabilities on our consolidated balance sheets as of the dates identified:

Balances as of December 31, 2022
Balance Sheet ClassificationPresented
Gross		Effects of
Netting		Presented
Net
  (In thousands)
Assets:
Current Commodity DerivativesCurrent derivative assets$8,547 $(8,547)$— 
Long-term Commodity DerivativesNon-current derivative assets— — — 
Total derivative assets$8,547 $(8,547)$— 
Liabilities:
Current Commodity DerivativesCurrent derivative liabilities$32,113 $(8,547)$23,566 
Long-term Commodity DerivativesNon-current derivative liabilities— — — 
Warrant LiabilityWarrant liability— — — 
Total derivative liabilities$32,113 $(8,547)$23,566 

Balances as of December 31, 2021
Balance Sheet ClassificationPresented
Gross		Effects of
Netting		Presented
Net
  (In thousands)
Liabilities:
Current Commodity DerivativesCurrent derivative liabilities$40,876 $— $40,876 
Long-term Commodity DerivativesNon-current derivative liabilities17,855 — 17,855 
Warrant LiabilityWarrant liability19,822 — 19,822 
Total derivative liabilities$78,553 $— $78,553 

The following table presents the activity related to derivative instruments in the consolidated statements of operations during the periods indicated:

Year Ended December 31,
20222021
 (In thousands)
Loss on derivatives$(63,610)$(97,615)
Cash settlements paid on commodity derivatives(98,775)(44,591)
Loss on derivatives less cash settlements paid on commodity derivatives$35,165 $(53,024)
Loss on change in fair value of warrants$(29,323)$(18,937)