Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2017

Derivative Instruments Not Designated as Hedging Instruments [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]

As of September 30, 2017, the Company had commodity derivative contracts outstanding as summarized in the tables below:

Oil Swaps



Contract Period	NYMEX WTI Volumes	Weighted-Average Contract Price
	(MBbls)	(per Bbl)
Fourth quarter 2017	1,510	$	47.11
2018	6,272	$	49.82
2019	1,940	$	50.70
Total	9,722

Oil Collars



Contract Period	NYMEX WTI Volumes	Weighted- Average Floor Price		Weighted- Average Ceiling Price
	(MBbls)	(per Bbl)		(per Bbl)
Fourth quarter 2017	1,086	$	47.51	$	56.05
2018	5,030	$	50.00	$	58.07
2019	3,128	$	50.00	$	58.84
Total	9,244

Oil Basis Swaps



Contract Period	Midland-Cushing Volumes	Weighted-Average Contract Price ⁽¹⁾
	(MBbls)	(per Bbl)
Fourth quarter 2017	1,856	$	(1.50	)
2018	8,734	$	(1.27	)
2019	3,963	$	(1.45	)
Total	14,553

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⁽¹⁾	Represents the price differential between WTI prices at Midland, Texas and WTI prices at Cushing, Oklahoma.

Subsequent to September 30, 2017, the Company entered into Midland-Cushing basis swap contracts for 2018 for a total of 1.4 million Bbls of oil production at a contract price of ($0.33) per Bbl.

Natural Gas Swaps



Contract Period	Sold Volumes	Weighted-Average Contract Price		Purchased Volumes ⁽¹⁾		Weighted- Average Contract Price		Net Volumes
	(BBtu)	(per MMBtu)		(BBtu)		(per MMBtu)		(BBtu)
Fourth quarter 2017	22,001	$	3.98	—		$	—	22,001
2018	102,900	$	3.37	(30,606	)	$	4.27	72,294
2019	41,394	$	3.76	(24,415	)	$	4.34	16,979
Total ⁽²⁾	166,295			(55,021	)			111,274

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⁽¹⁾

During 2016, the Company restructured certain of its natural gas derivative contracts by buying fixed price volumes to offset existing 2018 and 2019 fixed price swap contracts totaling 55.0 million MMBtu. The Company then entered into new 2017 fixed price swap contracts totaling 38.6 million MMBtu with a contract price of $4.43 per MMBtu. No other cash or other consideration was included as part of the restructuring.


⁽²⁾	Total net volumes of natural gas swaps are comprised of IF El Paso Permian (1%), IF HSC (98%), and IF NNG Ventura (1%).

NGL Swaps



	OPIS Purity Ethane Mont Belvieu			OPIS Propane Mont Belvieu Non-TET			OPIS Normal Butane Mont Belvieu Non-TET			OPIS Isobutane Mont Belvieu Non-TET			OPIS Natural Gasoline Mont Belvieu Non-TET
Contract Period	Volumes	Weighted-Average Contract Price		Volumes	Weighted-Average Contract Price		Volumes	Weighted-Average Contract Price		Volumes	Weighted-Average Contract Price		Volumes	Weighted-Average Contract Price
	(MBbls)	(per Bbl)		(MBbls)	(per Bbl)		(MBbls)	(per Bbl)		(MBbls)	(per Bbl)		(MBbls)	(per Bbl)
Fourth quarter 2017	966	$	9.65	653	$	24.24	214	$	35.29	174	$	35.60	203	$	48.41
2018	4,017	$	11.00	2,464	$	24.74	391	$	35.14	308	$	34.72	427	$	48.44
2019	3,112	$	12.27	1,036	$	26.49	—	$	—	—	$	—	—	$	—
2020	539	$	11.13	—	$	—	—	$	—	—	$	—	—	$	—
Total	8,634			4,153			605			482			630

Schedule of fair value of derivatives in accompanying balance sheets

The following tables detail the fair value of derivatives recorded in the accompanying balance sheets, by category:



	As of September 30, 2017
	Derivative Assets			Derivative Liabilities
	Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
	(in thousands)
Commodity contracts	Current assets	$	63,685	Current liabilities	$	87,791
Commodity contracts	Noncurrent assets	60,035		Noncurrent liabilities	67,676
Derivatives not designated as hedging instruments		$	123,720		$	155,467



	As of December 31, 2016
	Derivative Assets			Derivative Liabilities
	Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
	(in thousands)
Commodity contracts	Current assets	$	54,521	Current liabilities	$	115,464
Commodity contracts	Noncurrent assets	67,575		Noncurrent liabilities	98,340
Derivatives not designated as hedging instruments		$	122,096		$	213,804

Schedule of the potential effects of master netting arrangements [Table Text Block]

The following table provides a reconciliation between the gross assets and liabilities reflected on the accompanying balance sheets and the potential effects of master netting arrangements on the fair value of the Company’s derivative contracts:



	Derivative Assets						Derivative Liabilities
	As of						As of
Offsetting of Derivative Assets and Liabilities	September 30, 2017			December 31, 2016			September 30, 2017			December 31, 2016
	(in thousands)
Gross amounts presented in the accompanying balance sheets	$	123,720		$	122,096		$	(155,467	)	$	(213,804	)
Amounts not offset in the accompanying balance sheets	(85,195		)	(118,080		)	85,195			118,080
Net amounts	$	38,525		$	4,016		$	(70,272	)	$	(95,724	)

Schedule of derivative (gain) loss

The following table summarizes the components of the net derivative (gain) loss presented in the accompanying statements of operations:



	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2017			2016			2017			2016
	(in thousands)
Derivative settlement (gain) loss:
Oil contracts	$	2,472		$	(49,241	)	$	14,310		$	(221,397	)
Gas contracts	(24,088		)	(10,096		)	(63,345		)	(82,588		)
NGL contracts	8,524			1,841			19,633			(2,249		)
Total derivative settlement gain	$	(13,092	)	$	(57,496	)	$	(29,402	)	$	(306,234	)

Total net derivative (gain) loss:
Oil contracts	$	45,874		$	(733	)	$	(41,910	)	$	49,608
Gas contracts	(6,068		)	(14,006		)	(56,574		)	24,460
NGL contracts	40,793			(13,298		)	9,120			47,018
Total net derivative (gain) loss	$	80,599		$	(28,037	)	$	(89,364	)	$	121,086