Derivative Instruments and Hedging Activities

As of June 30, 2018, the Company had the following outstanding financial commodity derivatives:

Basis Swaps

Swaps

Type of Contract

Volume

Contract Period

Weighted-Average

Natural gas (Leidy)

17.9

Bcf

Jul. 2018 - Dec. 2018

(0.69

)

Natural gas (Transco)

16.0

Bcf

Jul. 2018 - Dec. 2019

0.42

Natural gas (NYMEX)

46.5

Bcf

Jul. 2018 - Dec. 2018

2.93

Natural gas (NYMEX)

6.0

Bcf

Jul. 2018 - Oct. 2018

3.10

As of June 30, 2018, the Company had the following outstanding physical commodity derivatives:



Type of Contract	Volume		Contract Period	Weighted-Average Fixed Price
Natural gas purchase	6.0	Bcf	Jul. 2018 - Oct. 2018	$	3.67

In the tables above, natural gas prices are stated per Mcf.

Effect of Derivative Instruments on the Condensed Consolidated Balance Sheet



		Derivative Assets				Derivative Liabilities
(In thousands)	Balance Sheet Location	June 30, 2018		December 31, 2017		June 30, 2018		December 31, 2017
Commodity contracts	Derivative instruments (current)	$	—	$	—	$	9,589	$	30,637
Commodity contracts	Derivative instruments (non-current)	3,412		2,239		—		—
		$	3,412	$	2,239	$	9,589	$	30,637

Offsetting of Derivative Assets and Liabilities in the Condensed Consolidated Balance Sheet



(In thousands)	June 30, 2018			December 31, 2017
Derivative assets
Gross amounts of recognized assets	$	4,474		$	2,239
Gross amounts offset in the statement of financial position	(1,062		)	—
Net amounts of assets presented in the statement of financial position	3,412			2,239
Gross amounts of financial instruments not offset in the statement of financial position	—			—
Net amount	$	3,412		$	2,239

Derivative liabilities
Gross amounts of recognized liabilities	$	10,651		$	30,637
Gross amounts offset in the statement of financial position	(1,062		)	—
Net amounts of liabilities presented in the statement of financial position	9,589			30,637
Gross amounts of financial instruments not offset in the statement of financial position	—			241
Net amount	$	9,589		$	30,878

Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations



	Three Months Ended June 30,					Six Months Ended June 30,
(In thousands)	2018			2017		2018			2017
Cash received (paid) on settlement of derivative instruments
Gain (loss) on derivative instruments	$	5,819		$	1,204	$	(20,312	)	$	(319	)
Non-cash gain (loss) on derivative instruments
Gain (loss) on derivative instruments	(9,487		)	12,601		22,221			47,509
	$	(3,668	)	$	13,805	$	1,909		$	47,190