XML 37 R25.htm IDEA: XBRL DOCUMENT

Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2019

Derivative Instruments Not Designated as Hedging Instruments [Abstract]

Schedule of notional amounts of outstanding derivative positions [Table Text Block]

As of June 30, 2019, the Company had commodity derivative contracts outstanding through the fourth quarter of 2022 as summarized in the tables below.

Oil Swaps



Contract Period	NYMEX WTI Volumes	Weighted-Average Contract Price
	(MBbl)	(per Bbl)
Third quarter 2019	1,217	$	61.41
Fourth quarter 2019	1,685	$	61.38
2020	6,711	$	59.96
Total	9,613

Oil Collars



Contract Period	NYMEX WTI Volumes	Weighted-Average Floor Price		Weighted-Average Ceiling Price
	(MBbl)	(per Bbl)		(per Bbl)
Third quarter 2019	2,547	$	49.50	$	62.64
Fourth quarter 2019	3,168	$	50.54	$	62.49
2020	5,094	$	55.00	$	63.68
Total	10,809

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 2019	3,291	$	(2.86	)	—	$	—
Fourth quarter 2019	3,338	$	(2.87	)	—	$	—
2020	14,090	$	(0.73	)	2,750	$	(8.03	)
2021	3,708	$	0.33		3,650	$	(7.86	)
2022	—	$	—		3,650	$	(7.78	)
Total	24,427				10,050

____________________________________________


⁽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	IF HSC Volumes	Weighted-Average Contract Price		WAHA Volumes	Weighted-Average Contract Price
	(BBtu)	(per MMBtu)		(BBtu)	(per MMBtu)
Third quarter 2019	14,102	$	2.84	4,340	$	1.30
Fourth quarter 2019	14,433	$	2.88	2,962	$	1.75
2020	10,963	$	2.90	4,034	$	1.91
Total ⁽¹⁾	39,498			11,336

____________________________________________


⁽¹⁾	The Company has natural gas swaps in place that settle against Inside FERC Houston Ship Channel (“IF HSC”), Inside FERC West Texas (“IF WAHA”), and Platt’s Gas Daily West Texas (“GD WAHA”). As of June 30, 2019, total volumes for gas swaps are comprised of 78 percent IF HSC, 11 percent GD Waha, and 11 percent IF Waha.

Gas Collars



Contract Period	IF HSC Volumes	Weighted-Average Floor Price		Weighted-Average Ceiling Price
	(BBtu)	(per MMBtu)		(per MMBtu)
Third quarter 2019	5,066	$	2.50	$	2.83
Fourth quarter 2019	4,818	$	2.50	$	2.83
Total	9,884

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 2019	907	$	12.34	708	$	30.98	39	$	35.64	30	$	35.70	50	$	50.93
Fourth quarter 2019	896	$	12.36	660	$	31.60	39	$	35.64	29	$	35.70	50	$	50.93
2020	711	$	11.38	420	$	27.99	—	$	—	—	$	—	—	$	—
Total	2,514			1,788			78			59			100

Schedule of fair value of derivatives in accompanying balance sheets [Table Text Block]

The following table details the fair value of commodity derivative contracts recorded in the accompanying balance sheets, by category:



	As of June 30, 2019		As of December 31, 2018
	(in thousands)
Derivative assets:
Current assets	$	114,242	$	175,130
Noncurrent assets	30,180		58,499
Total derivative assets	$	144,422	$	233,629
Derivative liabilities:
Current liabilities	$	70,259	$	62,853
Noncurrent liabilities	12,431		12,496
Total derivative liabilities	$	82,690	$	75,349

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 commodity derivative contracts:



	Derivative Assets						Derivative Liabilities
	As of						As of
	June 30, 2019			December 31, 2018			June 30, 2019			December 31, 2018
	(in thousands)
Gross amounts presented in the accompanying balance sheets	$	144,422		$	233,629		$	(82,690	)	$	(75,349	)
Amounts not offset in the accompanying balance sheets	(60,210		)	(56,041		)	60,210			56,041
Net amounts	$	84,212		$	177,588		$	(22,480	)	$	(19,308	)

Schedule of the components of the derivative settlement (gain) loss and of the net derivative (gain) loss [Table Text Block]

The following table summarizes the commodity components of the derivative settlement (gain) loss, as well as 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,
	2019			2018		2019			2018
	(in thousands)
Derivative settlement (gain) loss:
Oil contracts	$	10,689		$	24,430	$	12,058		$	45,178
Gas contracts	(5,668		)	757		(1,534		)	(5,653		)
NGL contracts	(9,111		)	11,478		(9,645		)	21,668
Total derivative settlement (gain) loss	$	(4,090	)	$	36,665	$	879		$	61,193

Net derivative (gain) loss:
Oil contracts	$	(34,552	)	$	22,402	$	151,245		$	36,368
Gas contracts	(25,996		)	7,000		(32,109		)	16,990
NGL contracts	(19,107		)	34,347		(21,710		)	17,920
Total net derivative (gain) loss	$	(79,655	)	$	63,749	$	97,426		$	71,278