Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2018

Derivative Instruments Not Designated as Hedging Instruments [Abstract]

Schedule of notional amounts of outstanding derivative positions

As of September 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)
Fourth quarter 2018	1,894	$	49.87
2019	3,733	$	59.80
2020	2,491	$	65.68
Total	8,118

Oil Collars

Contract Period	NYMEX WTI  Volumes	Weighted- Average Floor  Price		Weighted- Average Ceiling  Price
	(MBbl)	(per Bbl)		(per Bbl)
Fourth quarter 2018	2,222	$	50.00	$	58.44
2019	10,055	$	50.59	$	63.62
2020	1,165	$	55.00	$	66.47
Total	13,442

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)
Fourth quarter 2018	3,327	$	(1.08	)	—	$	—
2019	11,217	$	(3.36	)	—	$	—
2020	10,960	$	(1.05	)	1,840	$	(8.01	)
2021	—	$	—		3,650	$	(7.86	)
2022	—	$	—		3,650	$	(7.78	)
Total	25,504				9,140

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⁽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)
Fourth quarter 2018	28,204	$	3.27	(7,210	)	$	4.27	20,994	$	2.92
2019	50,021	$	3.58	(24,415	)	$	4.34	25,606	$	2.85
2020	2,942	$	2.82	—		$	—	2,942	$	2.82
Total	81,167			(31,625	)			49,542

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

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)
Fourth quarter 2018	1,146	$	11.18	671	$	24.39	102	$	35.70	76	$	35.07	208	$	50.99
2019	3,533	$	12.31	1,980	$	28.89	154	$	35.64	117	$	35.70	197	$	50.93
2020	539	$	11.13	—	$	—	—	$	—	—	$	—	—	$	—
Total	5,218			2,651			256			193			405

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 September 30, 2018		As of December 31, 2017
	(in thousands)
Derivative assets:
Current assets	$	81,163	$	64,266
Noncurrent assets	8,853		40,362
Total derivative assets	$	90,016	$	104,628
Derivative liabilities:
Current liabilities	$	304,159	$	172,582
Noncurrent liabilities	72,605		71,402
Total derivative liabilities	$	376,764	$	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
	September 30,   2018			December 31, 2017			September 30,   2018			December 31, 2017
	(in thousands)
Gross amounts presented in the accompanying balance sheets	$	90,016		$	104,628		$	(376,764	)	$	(243,984	)
Amounts not offset in the accompanying balance sheets	(90,016		)	(100,035		)	90,016			100,035
Net amounts	$	—		$	4,593		$	(286,748	)	$	(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   September 30,					For the Nine Months Ended   September 30,
	2018		2017			2018			2017
	(in thousands)
Derivative settlement (gain) loss:
Oil contracts	$	16,798	$	2,472		$	61,976		$	14,310
Gas contracts	802		(24,088		)	(4,851		)	(63,345		)
NGL contracts	23,118		8,524			44,786			19,633
Total derivative settlement (gain) loss	$	40,718	$	(13,092	)	$	101,911		$	(29,402	)
Net derivative (gain) loss:
Oil contracts	$	110,413	$	45,874		$	146,781		$	(41,910	)
Gas contracts	4,309		(6,068		)	21,299			(56,574		)
NGL contracts	63,304		40,793			81,224			9,120
Total net derivative (gain) loss	$	178,026	$	80,599		$	249,304		$	(89,364	)