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Derivative Instruments
 12 Months Ended
Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
As of December 31, 2019, the Company had the following outstanding financial commodity derivatives:
 
 
 
 
 
 
Collars
 
 
 
 
 
 
 
 
Floor
 
Ceiling
 
Swaps
Type of Contract
 
Volume (Mmbtu)
 
Contract Period
 
Range
 
Weighted-Average
 
Range
 
Weighted- Average
 
Weighted- Average
Natural gas (NYMEX)
 
10,700,000

 
Apr. 2020 - Oct. 2020
 

 


 

 


 
$
2.27

Natural gas (NYMEX)
 
10,700,000

 
Apr. 2020 - Oct. 2020
 
$—
 
$
2.15

 
$2.36 - $2.38
 
$
2.37

 



In early 2020, the Company entered into the following financial commodity derivatives:
 
 
 
 
 
 
Collars
 
 
 
 
 
 
 
 
Floor
 
Ceiling
 
Swaps
Type of Contract
 
Volume (Mmbtu)
 
Contract Period
 
Range
 
Weighted-Average
 
Range
 
Weighted- Average
 
Weighted- Average
Natural gas (NYMEX)
 
10,700,000

 
Apr. 2020 - Oct. 2020
 
 
 
 
 
 
 
 
 
$
2.28

Natural gas (NYMEX)
 
10,700,000

 
Apr. 2020 - Oct. 2020
 
$—
 
$
2.15

 
$—
 
$
2.38

 
 

Effect of Derivative Instruments on the Consolidated Balance Sheet
 
 
 
 
Fair Values of Derivative Instruments
 
 
 
 
Derivative Assets
 
Derivative Liabilities
 
 
 
 
December 31,
 
December 31,
(In thousands)
 
Balance Sheet Location
 
2019
 
2018
 
2019
 
2018
Commodity contracts
 
Derivative instruments (current)
 
$
31

 
$
57,665

 
9

 
$
—


Offsetting of Derivative Assets and Liabilities in the Consolidated Balance Sheet
 
 
December 31,
(In thousands)
 
2019
 
2018
Derivative assets
 
 

 
 

Gross amounts of recognized assets
 
$
47

 
$
60,105

Gross amounts offset in the consolidated balance sheet
 
(16
)
 
(2,440
)
Net amounts of assets presented in the consolidated balance sheet
 
31

 
57,665

Gross amounts of financial instruments not offset in the consolidated balance sheet
 
—

 
—

Net amount
 
$
31

 
$
57,665

 
 
 
 
 
Derivative liabilities
 
 
 
 
Gross amounts of recognized liabilities
 
$
25

 
$
2,440

Gross amounts offset in the consolidated balance sheet
 
(16
)
 
(2,440
)
Net amounts of liabilities presented in the consolidated balance sheet
 
9

 
—

Gross amounts of financial instruments not offset in the consolidated balance sheet
 
—

 
—

Net amount
 
$
9

 
$
—

Effect of Derivative Instruments on the Consolidated Statement of Operations
 
 
Year Ended December 31,
(In thousands)
 
2019
 
2018
 
2017
Cash received (paid) on settlement of derivative instruments
 
 
 
 
 
 
Gain (loss) on derivative instruments
 
$
138,450

 
$
(41,631
)
 
$
8,056

Non-cash gain (loss) on derivative instruments
 
 
 
 
 
 
Gain (loss) on derivative instruments
 
(57,642
)
 
86,063

 
8,870

 
 
$
80,808

 
$
44,432

 
$
16,926


Additional Disclosures about Derivative Instruments
The use of derivative instruments involves the risk that the counterparties will be unable to meet their obligations under the agreements. The Company's counterparties are primarily commercial banks and financial service institutions that management believes present minimal credit risk and its derivative contracts are with multiple counterparties to minimize its exposure to any individual counterparty. The Company performs both quantitative and qualitative assessments of these counterparties based on their credit ratings and credit default swap rates where applicable.
Certain counterparties to the Company's derivative instruments are also lenders under its revolving credit facility. The Company's revolving credit facility and derivative instruments contain certain cross default and acceleration provisions that may require immediate payment of its derivative liabilities in certain situations. The Company also has netting arrangements with each of its counterparties that allow it to offset assets and liabilities from separate derivative contracts with that counterparty.