XML 32 R16.htm IDEA: XBRL DOCUMENT v3.20.4
Derivative Instruments
 12 Months Ended
Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
As of December 31, 2020, the Company had the following outstanding financial commodity derivatives:
Collars
FloorCeilingSwaps
Type of ContractVolume (Mmbtu)Contract PeriodRange
($/Mmbtu)		Weighted-Average
($/Mmbtu)		Range
($/Mmbtu)		Weighted- Average
($/Mmbtu)		Weighted- Average
($/Mmbtu)
Natural gas (NYMEX)18,250,000 Jan. 2021-Dec. 2021$2.74 
Natural gas (NYMEX)164,250,000 Jan. 2021-Dec. 2021
$2.50 - $2.85
$2.68 
$2.83 - $3.94
$3.09 
Natural gas (NYMEX)10,700,000 Apr. 2021-Oct. 2021$— $2.50 $— $2.80 
Natural gas (NYMEX)10,700,000 Apr. 2021-Oct. 2021$2.75 
In early 2021, the Company entered into the following financial commodity derivatives:
Swaps
Type of ContractVolume (Mmbtu)Contract PeriodWeighted- Average ($/Mmbtu)
Natural gas (NYMEX)10,700,000Apr. 2021-Oct. 2021$2.81 
Effect of Derivative Instruments on the Consolidated Balance Sheet
  Fair Values of Derivative Instruments
  Derivative AssetsDerivative Liabilities
  December 31,December 31,
(In thousands)Balance Sheet Location2020201920202019
Commodity contractsDerivative instruments (current)$26,209 $31 $— $— 
Commodity contractsAccrued liabilities— — — 9 
Offsetting of Derivative Assets and Liabilities in the Consolidated Balance Sheet
 December 31,
(In thousands)20202019
Derivative assets
  
Gross amounts of recognized assets$26,354 $47 
Gross amounts offset in the consolidated balance sheet(145)(16)
Net amounts of assets presented in the consolidated balance sheet26,209 31 
Gross amounts of financial instruments not offset in the consolidated balance sheet— — 
Net amount$26,209 $31 
Derivative liabilities
Gross amounts of recognized liabilities$145 $25 
Gross amounts offset in the consolidated balance sheet(145)(16)
Net amounts of liabilities presented in the consolidated balance sheet— 9 
Gross amounts of financial instruments not offset in the consolidated balance sheet— — 
Net amount$— $9 
Effect of Derivative Instruments on the Consolidated Statement of Operations
Year Ended December 31,
(In thousands)202020192018
Cash received (paid) on settlement of derivative instruments
Gain (loss) on derivative instruments$35,218 $138,450 $(41,631)
Non-cash gain (loss) on derivative instruments
Gain (loss) on derivative instruments26,186 (57,642)86,063 
$61,404 $80,808 $44,432 
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.