Derivative Instruments

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

Derivative Instruments

As of September 30, 2021, 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)	4,600,000	Oct. 2021-Dec. 2021									$	2.74
Natural gas (NYMEX)	41,400,000	Oct. 2021-Dec. 2021	$2.50 - $2.85		$	2.68	$2.89 - $3.80		$	3.10
Natural gas (NYMEX)	9,200,000	Oct. 2021-Dec. 2021									$	4.01
Natural gas (NYMEX)	9,150,000	Nov. 2021-Dec. 2021									$	4.02
Natural gas (NYMEX)	1,550,000	Oct. 2021	$	—	$	2.50	$	—	$	2.80
Natural gas (NYMEX)	3,100,000	Oct. 2021									$	2.78
Natural gas (NYMEX)	36,000,000	Jan. 2022-Mar. 2022	$4.00 - $4.75		$	4.38	$5.00 - $10.32		$	6.97
Natural gas (NYMEX)	42,800,000	Apr. 2022- Oct. 2022	$3.00 - $3.50		$	3.19	$4.07 - $4.83		$	4.30

Subsequent event. As a result of the Merger, the Company acquired the following outstanding 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 (Perm EP)(1)	2,760,000	Oct. 2021-Dec. 2021	$1.50 - $1.52		$	1.51	$	—	$	1.80
Natural gas (Perm EP)(1)	3,640,000	Oct. 2021-Mar. 2022	$1.80 - $1.90		$	1.85	$2.18 - $2.19		$	2.18
Natural gas (Perm EP)(1)	5,460,000	Oct. 2021-Jun. 2022	$	—	$	2.40	$2.85 - $2.90		$	2.88
Natural gas (Perm EP)(1)	7,300,000	Jan. 2022-Dec. 2022	$	—	$	2.50	$	—	$	3.15
Natural gas (PEPL)(2)	2,760,000	Oct. 2021-Dec. 2021	$1.70 - $1.78		$	1.73	$2.12 - $2.18		$	2.14
Natural gas (PEPL)(2)	7,280,000	Oct. 2021-Mar. 2022	$1.90 - $2.10		$	2.00	$2.35 - $2.44		$	2.40
Natural gas (PEPL)(2)	5,460,000	Oct. 2021-Jun. 2022	$	—	$	2.40	$2.81 - $2.91		$	2.86
Natural gas (PEPL)(2)	7,300,000	Jan. 2022-Dec. 2022	$	—	$	2.60	$	—	$	3.27
Natural gas (Waha)(3)	2,760,000	Oct. 2021-Dec. 2021	$	—	$	1.50	$1.75 - $1.76		$	1.75
Natural gas (Waha)(3)	7,280,000	Oct. 2021-Mar. 2022	$1.70 - $1.84		$	1.77	$2.10 - $2.20		$	2.15
Natural gas (Waha)(3)	5,460,000	Oct. 2021-Jun. 2022	$	—	$	2.40	$2.82 - $2.89		$	2.86
Natural gas (Waha)(3)	3,650,000	Oct. 2021-Sep. 2022	$	—	$	2.40	$	—	$	2.77
Natural gas (Waha)(3)	7,300,000	Jan. 2022-Dec. 2022	$	—	$	2.50	$	—	$	3.12

________________________________________________________

(1)The index price for these collars is El Paso Natural Gas Company, Permian Basin Index (“Perm EP”) as quoted in Platt’s Inside FERC.

(2)The index price for these collars is Panhandle Eastern Pipe Line, Tex/OK Mid-Continent Index (“PEPL”) as quoted in Platt’s Inside FERC.

(3)The index price for these collars is Waha West Texas Natural Gas Index (“Waha”) as quoted in Platt’s Inside FERC.

			Collars
			Floor				Ceiling			Basis Swaps		Roll Swaps
Type of Contract	Volume (Mbbl)	Contract Period	Range ($/Bbl)		Weighted-Average ($/Bbl)		Range ($/Bbl)	Weighted-Average ($/Bbl)		Weighted-Average ($/Bbl)		Weighted-Average ($/Bbl)
Crude oil (WTI)	1,288	Oct. 2021-Dec. 2021	$29.00-$30.00		$	29.71	$34.15-$40.55	$	36.86
Crude oil (WTI)	1,274	Oct. 2021-Mar. 2022	$	—	$	35.00	$45.15-$45.40	$	45.28
Crude oil (WTI)	2,457	Oct. 2021-Jun. 2022	$35.00-$37.50		$	36.11	$48.38-$51.10	$	49.97
Crude oil (WTI)	3,650	Oct. 2021-Sep. 2022	$	—	$	40.00	$47.55-$50.89	$	49.19
Crude oil (WTI)	2,920	Jan. 2022-Dec. 2022	$	—	$	57.00	$72.20-$72.80	$	72.43
Crude oil (WTI Midland)(1)	1,196	Oct. 2021-Dec. 2021								$	(0.65)
Crude oil (WTI Midland)(1)	1,274	Oct. 2021-Mar. 2022								$	0.11
Crude oil (WTI Midland)(1)	2,184	Oct. 2021-Jun. 2022								$	0.25
Crude oil (WTI Midland)(1)	2,555	Oct. 2021-Sep. 2022								$	0.38
Crude oil (WTI Midland)(1)	2,920	Jan. 2022-Dec. 2022								$	0.05
Crude oil (WTI)	1,274	Oct. 2021-Mar. 2022										$	(0.24)
Crude oil (WTI)	1,092	Oct. 2021-Jun. 2022										$	(0.20)
Crude oil (WTI)	2,555	Oct. 2021-Sep. 2022										$	0.10

________________________________________________________

(1)The index price the Company pays under these basis swaps is WTI Midland as quoted by Argus Americas Crude.

Effect of Derivative Instruments on the Condensed Consolidated Balance Sheet

		Derivative Assets				Derivative Liabilities
(In thousands)	Balance Sheet Location	September 30, 2021		December 31, 2020		September 30, 2021		December 31, 2020
Commodity contracts	Derivative instruments (current)	$	—	$	26,209	$	212,894	$	—
Commodity contracts	Other liabilities (non-current)	—		—		1,237		—
		$	—	$	26,209	$	214,131	$	—

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

(In thousands)	September 30, 2021		December 31, 2020
Derivative assets
Gross amounts of recognized assets	$	953	$	26,354
Gross amounts offset in the condensed consolidated balance sheet	(953)		(145)
Net amounts of assets presented in the condensed consolidated balance sheet	—		26,209
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet	—		—
Net amount	$	—	$	26,209
Derivative liabilities
Gross amounts of recognized liabilities	$	215,084	$	145
Gross amounts offset in the condensed consolidated balance sheet	(953)		(145)
Net amounts of liabilities presented in the condensed consolidated balance sheet	214,131		—
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet	—		—
Net amount	$	214,131	$	—

Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations

	Three Months Ended  September 30,				Nine Months Ended  September 30,
(In thousands)	2021		2020		2021		2020
Cash received (paid) on settlement of derivative instruments
(Loss) gain on derivative instruments	$	(64,351)	$	14,106	$	(61,302)	$	33,529
Non-cash gain (loss) on derivative instruments
(Loss) gain on derivative instruments	(136,931)		(56,359)		(240,339)		(15,746)
	$	(201,282)	$	(42,253)	$	(301,641)	$	17,783