Note 6 - Hedging Program and Derivatives

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Derivative Instruments and Hedging Activities Disclosure [Text Block]

6.

  

Hedging Program and Derivatives

The derivative contracts we utilize are based on index prices that

may

and often differ from the actual oil and gas prices realized in our operations.  Our derivative contracts do

not

qualify for hedge accounting; therefore, fluctuations in the market value of the derivative contracts are recognized in earnings during the current period. There are

no

netting agreements relating to these derivative contracts and there is

no

policy to offset.

The following table sets forth the summary position of our derivative contracts as of

March 31, 2020

:

	Oil - WTI
Contract Periods	Daily Volume (Bbl)		Swap Price (per Bbl)
Fixed Swaps
2020 April - December		3,729	$	55.10
2021 January - December		2,889	$	57.62
2022 January - December		2,412	$	50.60
2023 January - December		1,498	$	50.60
2024 January - December		1,589	$	50.60
Basis Swaps
2020 April - December		4,000	$	2.98

The following table illustrates the impact of derivative contracts on our balance sheet:

Fair Value of Derivative Contracts as of March 31, 2020
	Asset Derivatives			Liability Derivatives
Derivatives not designated as hedging instruments	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Commodity price derivatives	Derivatives – current	$	34,020	Derivatives – current	$	800
Commodity price derivatives	Derivatives – long-term		36,788	Derivatives – long-term		-
		$	70,808		$	800

Fair Value of Derivative Contracts as of December 31, 2019
	Asset Derivatives			Liability Derivatives
Derivatives not designated as hedging instruments	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Commodity price derivatives	Derivatives – current	$	83	Derivatives – current	$	10,688
Commodity price derivatives	Derivatives – long-term		4,170	Derivatives – long-term		999
		$	4,253		$	11,687