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Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

As of September 30, 2020, the Company had the following outstanding financial commodity derivatives:


			Collars
			Floor				Ceiling				Swaps
Type of Contract	Volume (Mmbtu)	Contract Period	Range ($/Mmbtu)		Weighted-Average ($/Mmbtu)		Range ($/Mmbtu)		Weighted-Average ($/Mmbtu)		Weighted-Average ($/Mmbtu)
Natural gas (NYMEX)	9,300,000	Oct. 2020									$	2.25
Natural gas (NYMEX)	15,500,000	Oct. 2020	$1.90 - $2.15		$	2.05	$2.10 - $2.38		$	2.24
Natural gas (NYMEX)	18,250,000	Jan. 2021-Dec. 2021									$	2.74
Natural gas (NYMEX)	127,750,000	Jan. 2021-Dec. 2021	$2.50 - $2.80		$	2.64	$2.83 - $3.50		$	3.02
Natural gas (NYMEX)	10,700,000	Apr. 2021-Oct. 2021	$	—	$	2.50	$	—	$	2.80

In October 2020, the Company entered into the following financial commodity derivatives:

Collars

Floor

Ceiling

Type of Contract

Volume (Mmbtu)

Contract Period

Range
($/Mmbtu)

Weighted-Average
($/Mmbtu)

Range
($/Mmbtu)

Weighted-Average
($/Mmbtu)

Natural gas (NYMEX)

36,500,000

Jan. 2021-Dec. 2021

$2.80 - $2.85

2.83

$3.00 - $3.94

3.32

Effect of derivative instruments on the condensed consolidated balance sheet

Effect of Derivative Instruments on the Condensed Consolidated Balance Sheet


		Derivative Assets				Derivative Liabilities
(In thousands)	Balance Sheet Location	September 30, 2020		December 31, 2019		September 30, 2020		December 31, 2019
Commodity contracts	Other current assets (current)	$	—	$	31	$	—	$	—
Commodity contracts	Derivative instruments (current)	—		—		11,628		—
Commodity contracts	Accrued liabilities (current)	—		—		—		9
Commodity contracts	Other liabilities (non-current)	—		—		4,095		—
		$	—	$	31	$	15,723	$	9

Schedule of offsetting of derivative liabilities in the condensed consolidated balance sheet

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


(In thousands)	September 30, 2020		December 31, 2019
Derivative assets
Gross amounts of recognized assets	$	1,682	$	47
Gross amounts offset in the condensed consolidated balance sheet	(1,682)		(16)
Net amounts of assets presented in the condensed consolidated balance sheet	—		31
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet	—		—
Net amount	$	—	$	31

Derivative liabilities
Gross amounts of recognized liabilities	$	17,405	$	25
Gross amounts offset in the condensed consolidated balance sheet	(1,682)		(16)
Net amounts of liabilities presented in the condensed consolidated balance sheet	15,723		9
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet	—		—
Net amount	$	15,723	$	9

Schedule of offsetting of derivative assets in the condensed consolidated balance sheet

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


(In thousands)	September 30, 2020		December 31, 2019
Derivative assets
Gross amounts of recognized assets	$	1,682	$	47
Gross amounts offset in the condensed consolidated balance sheet	(1,682)		(16)
Net amounts of assets presented in the condensed consolidated balance sheet	—		31
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet	—		—
Net amount	$	—	$	31

Derivative liabilities
Gross amounts of recognized liabilities	$	17,405	$	25
Gross amounts offset in the condensed consolidated balance sheet	(1,682)		(16)
Net amounts of liabilities presented in the condensed consolidated balance sheet	15,723		9
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet	—		—
Net amount	$	15,723	$	9

Effect of derivatives on the condensed consolidated statement of operations

Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2020		2019		2020		2019
Cash received (paid) on settlement of derivative instruments
(Loss) gain on derivative instruments	$	14,106	$	46,555	$	33,529	$	114,931
Non-cash gain (loss) on derivative instruments
(Loss) gain on derivative instruments	(56,359)		(35,495)		(15,746)		(31,965)
	$	(42,253)	$	11,060	$	17,783	$	82,966

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
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Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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-URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5579240-113959

+ Details