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Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

As of March 31, 2022, the Company had 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 (NYMEX)	74,900,000	Apr. 2022 - Oct. 2022	$3.00 - $4.50		$	3.61	$4.07 - $6.68		$	5.12
Natural gas (Perm EP)(1)	1,820,000	Apr. 2022 - Jun. 2022	$	—	$	2.40	$2.85 - $2.90		$	2.88
Natural gas (Perm EP)(1)	5,500,000	Apr. 2022 - Dec. 2022	$	—	$	2.50	$	—	$	3.15
Natural gas (PEPL)(2)	1,820,000	Apr. 2022 - Jun. 2022	$	—	$	2.40	$2.81 - $2.91		$	2.86
Natural gas (PEPL)(2)	5,500,000	Apr. 2022 - Dec. 2022	$	—	$	2.60	$	—	$	3.27
Natural gas (Waha)(3)	1,820,000	Apr. 2022 - Jun. 2022	$	—	$	2.40	$2.82 - $2.89		$	2.86
Natural gas (Waha)(3)	1,830,000	Apr. 2022 - Sep. 2022	$	—	$	2.40	$	—	$	2.77
Natural gas (Waha)(3)	5,500,000	Apr. 2022 - Dec. 2022	$	—	$	2.50	$	—	$	3.12
Natural gas (NYMEX)	71,500,000	Apr. 2022 - Dec 2022	$3.50 - $4.25		$	3.84	$4.75 - $6.60		$	5.39
Natural gas (NYMEX)	52,850,000	Nov 2022 - Mar 2023	$4.00 - $4.75		$	4.46	$7.00 - $10.10		$	8.37

________________________________________________________

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

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

(3)The index price 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)	819	Apr. 2022-Jun. 2022	$35.00 - $37.50		$	36.11	$48.38 - $51.10	$	49.97
Crude oil (WTI)	1,830	Apr. 2022-Sep. 2022	$	—	$	40.00	$47.55 - $50.89	$	49.19
Crude oil (WTI)	2,200	Apr. 2022-Dec. 2022	$	—	$	57.00	$72.20 - $72.80	$	72.43
Crude oil (WTI Midland)(1)	728	Apr. 2022-Jun. 2022								$	0.25
Crude oil (WTI Midland)(1)	1,281	Apr. 2022-Sep. 2022								$	0.38
Crude oil (WTI Midland)(1)	2,200	Apr. 2022-Dec. 2022								$	0.05
Crude oil (WTI)	364	Apr. 2022-Jun. 2022										$	(0.20)
Crude oil (WTI)	1,281	Apr. 2022-Sep. 2022										$	0.10

________________________________________________________

(1)The index price is WTI Midland as quoted by Argus Americas Crude.

Subsequent event. In April 2022, the Company entered into the following financial commodity derivatives:

Swaps

Type of Contract

Volume (Mmbtu)

Contract Period

Weighted-Average
($/Mmbtu)

Natural gas (Waha)(1)

9,200,000

May 2022 - Oct 2022

4.77

________________________________________________________

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


			Collars
			Floor				Ceiling			Basis Swaps
Type of Contract	Volume (Mbbl)	Contract Period	Range ($/Bbl)		Weighted-Average ($/Bbl)		Range ($/Bbl)	Weighted-Average ($/Bbl)		Weighted-Average ($/Bbl)
Crude oil (WTI)	920	Oct. 2022 - Dec. 2022	$	—	$	65.00	$136.25 - $145.25	$	140.49
Crude oil (WTI)	1,810	Jan. 2023 - Jun 2023	$	—	$	65.00	$116.30 - $118.30	$	117.47
Crude oil (WTI Midland)(1)	920	Oct. 2022 - Dec. 2022								$	0.64
Crude oil (WTI Midland)(1)	1,810	Jan. 2023 - Jun 2023								$	0.64

________________________________________________________

(1)The index price is WTI Midland as quoted by Argus Americas Crude.

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 millions)	Balance Sheet Location	March 31, 2022		December 31, 2021		March 31, 2022		December 31, 2021

Commodity contracts	Derivative instruments (current)	$	—	$	7	$	372	$	159


		$	—	$	7	$	372	$	159

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 millions)	March 31, 2022		December 31, 2021
Derivative assets
Gross amounts of recognized assets	$	—	$	27
Gross amounts offset in the condensed consolidated balance sheet	—		(20)
Net amounts of assets presented in the condensed consolidated balance sheet	—		7
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet	—		—
Net amount	$	—	$	7

Derivative liabilities
Gross amounts of recognized liabilities	$	372	$	179
Gross amounts offset in the condensed consolidated balance sheet	—		(20)
Net amounts of liabilities presented in the condensed consolidated balance sheet	372		159
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet	58		35
Net amount	$	314	$	194

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 millions)	March 31, 2022		December 31, 2021
Derivative assets
Gross amounts of recognized assets	$	—	$	27
Gross amounts offset in the condensed consolidated balance sheet	—		(20)
Net amounts of assets presented in the condensed consolidated balance sheet	—		7
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet	—		—
Net amount	$	—	$	7

Derivative liabilities
Gross amounts of recognized liabilities	$	372	$	179
Gross amounts offset in the condensed consolidated balance sheet	—		(20)
Net amounts of liabilities presented in the condensed consolidated balance sheet	372		159
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet	58		35
Net amount	$	314	$	194

Effect of derivatives on the condensed consolidated statement of operations

Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations


	Three Months Ended March 31,
(In millions)	2022		2021
Cash received (paid) on settlement of derivative instruments
Gas Contracts	$	(42)	$	3
Oil Contracts	(129)		—
Non-cash loss on derivative instruments
Gas Contracts	(182)		(16)
Oil Contracts	(38)		—
	$	(391)	$	(13)

- 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

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+ Details