XML 41 R26.htm IDEA: XBRL DOCUMENT v3.10.0.1
Derivative Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2018
Derivative Instruments Not Designated as Hedging Instruments [Abstract]  
Schedule of notional amounts of outstanding derivative positions
As of June 30, 2018, the Company had commodity derivative contracts outstanding as summarized in the tables below:
Oil Swaps


Contract Period
 
NYMEX WTI Volumes
 
Weighted-Average
 Contract Price
 
 
(MBbl)
 
(per Bbl)
Third quarter 2018
 
1,769

 
$
49.77

Fourth quarter 2018
 
1,894

 
$
49.87

2019
 
1,940

 
$
50.70

Total
 
5,603

 
 
Oil Collars
Contract Period
 
NYMEX WTI
 Volumes
 
Weighted-
Average Floor
 Price
 
Weighted-
Average Ceiling
 Price
 
 
(MBbl)
 
(per Bbl)
 
(per Bbl)
Third quarter 2018
 
1,948

 
$
50.00

 
$
58.61

Fourth quarter 2018
 
2,222

 
$
50.00

 
$
58.44

2019
 
10,055

 
$
50.59

 
$
63.62

2020
 
366

 
$
55.00

 
$
67.01

Total
 
14,591

 
 
 
 
Oil Basis Swaps


Contract Period
 
WTI Midland-NYMEX WTI Volumes
 
Weighted-Average
 Contract Price (1)
 
NYMEX WTI-ICE Brent Volumes
 
Weighted-Average
Contract Price (2)
 
 
(MBbl)
 
(per Bbl)
 
(MBbl)
 
(per Bbl)
Third quarter 2018
 
3,018

 
$
(1.06
)
 
—

 
$
—

Fourth quarter 2018
 
3,327

 
$
(1.08
)
 
—

 
$
—

2019
 
11,217

 
$
(3.36
)
 
—

 
$
—

2020
 
7,250

 
$
(1.13
)
 
1,288

 
$
(7.97
)
2021
 
—

 
$
—

 
1,460

 
$
(7.80
)
2022
 
—

 
$
—

 
274

 
$
(7.67
)
Total
 
24,812

 
 
 
3,022

 
 
____________________________________________
(1)  
Represents the price differential between WTI Midland (Midland, Texas) and NYMEX WTI (Cushing, Oklahoma).
(2)  
Represents the price differential between NYMEX WTI (Cushing, Oklahoma) and ICE Brent (North Sea).
Gas Swaps
Contract Period
 
Sold IF HSC
Volumes
 
Weighted-Average
 Contract Price
 
Purchased IF HSC Volumes
 
Weighted-Average Contract Price
 
Net IF HSC
Volumes
 
Weighted-Average Contract Price
 
 
(BBtu)
 
(per MMBtu)
 
(BBtu)
 
(per MMBtu)
 
(BBtu)
 
(per MMBtu)
Third quarter 2018
 
28,218

 
$
3.25

 
(7,480
)
 
$
4.23

 
20,738

 
$
2.90

Fourth quarter 2018
 
28,204

 
$
3.27

 
(7,210
)
 
$
4.27

 
20,994

 
$
2.92

2019
 
41,394

 
$
3.87

 
(24,415
)
 
$
4.34

 
16,979

 
$
2.92

Total
 
97,816

 
 
 
(39,105
)
 
 
 
58,711

 
 

Gas Collars
Contract Period
 
IF HSC
 Volumes
 
Weighted-
Average Floor
 Price
 
Weighted-
Average Ceiling
 Price
 
 
(BBtu)
 
(per MMBtu)
 
(per MMBtu)
2019
 
14,242

 
$
2.50

 
$
2.83

Total
 
14,242

 
 
 
 
NGL Swaps
 
 
OPIS Ethane Purity 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
 
 
(MBbl)
(per Bbl)
 
(MBbl)
(per Bbl)
 
(MBbl)
(per Bbl)
 
(MBbl)
(per Bbl)
 
(MBbl)
(per Bbl)
Third quarter 2018
 
1,033

$
10.99

 
610

$
24.27

 
93

$
35.70

 
70

$
35.07

 
202

$
51.13

Fourth quarter 2018
 
1,146

$
11.18

 
671

$
24.39

 
102

$
35.70

 
76

$
35.07

 
208

$
50.99

2019
 
3,533

$
12.31

 
1,503

$
27.83

 
154

$
35.64

 
117

$
35.70

 
197

$
50.93

2020
 
539

$
11.13

 
—

$
—

 
—

$
—

 
—

$
—

 
—

$
—

Total
 
6,251

 
 
2,784

 
 
349

 
 
263

 
 
607

 
Schedule of fair value of derivatives in accompanying balance sheets
The following table details the fair value of commodity derivative contracts recorded in the accompanying balance sheets, by category:
 
As of June 30,
2018
 
As of December 31, 2017
 
(in thousands)
Derivative assets:
 
 
 
Current assets
$
146,329

 
$
64,266

Noncurrent assets
31,151

 
40,362

Total derivative assets
$
177,480

 
$
104,628

Derivative liabilities:
 
 
 
Current liabilities
$
259,338

 
$
172,582

Noncurrent liabilities
67,583

 
71,402

Total derivative liabilities
$
326,921

 
$
243,984
Schedule of the potential effects of master netting arrangements
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 commodity derivative contracts:
 
Derivative Assets
 
Derivative Liabilities
 
As of
 
As of
 
June 30, 
 2018
 
December 31, 2017
 
June 30, 
 2018
 
December 31, 2017
 
(in thousands)
Gross amounts presented in the accompanying balance sheets
$
177,480

 
$
104,628

 
$
(326,921
)
 
$
(243,984
)
Amounts not offset in the accompanying balance sheets
(147,009
)
 
(100,035
)
 
147,009

 
100,035

Net amounts
$
30,471

 
$
4,593

 
$
(179,912
)
 
$
(143,949
)
Schedule of derivative (gain) loss
The following table summarizes the components of the net derivative (gain) loss line item presented in the accompanying statements of operations:
 
For the Three Months Ended 
 June 30,
 
For the Six Months Ended 
 June 30,
 
2018
 
2017
 
2018
 
2017
 
(in thousands)
Derivative settlement (gain) loss:
 
 
 
 
 
 
 
Oil contracts
$
24,430

 
$
2,754

 
$
45,178

 
$
11,838

Gas contracts
757

 
(21,751
)
 
(5,653
)
 
(39,257
)
NGL contracts
11,478

 
2,694

 
21,668

 
11,109

Total derivative settlement (gain) loss
$
36,665

 
$
(16,303
)
 
$
61,193

 
$
(16,310
)
 
 
 
 
 
 
 
 
Net derivative (gain) loss:
 
 
 
 
 
 
 
Oil contracts
$
22,402

 
$
(38,194
)
 
$
36,368

 
$
(87,784
)
Gas contracts
7,000

 
(6,038
)
 
16,990

 
(50,506
)
NGL contracts
34,347

 
(10,957
)
 
17,920

 
(31,673
)
Total net derivative (gain) loss
$
63,749

 
$
(55,189
)
 
$
71,278

 
$
(169,963
)