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Commodity Derivative Activities (Tables)
 3 Months Ended
Mar. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Gains and Losses on Derivatives
The following table summarizes gains and losses we recognized on our oil and natural gas derivatives for the three months ended March 31, 2018 and 2017:
 
 
Three Months Ended March 31, 2018
 
Three Months Ended March 31, 2017
Oil and Natural Gas Derivatives (in thousands)
 
 
 
 
Gain (loss) on commodity derivatives not designated as hedges, settled

$
(384
)

$
142

Loss on commodity derivatives not designated as hedges, not settled

(597
)

(402
)
Total loss on commodity derivatives not designated as hedges

$
(981
)

$
(260
)
Schedule of Price Risk Derivatives
As of March 31, 2018, the open positions on our outstanding commodity derivative contracts, all of which were with JPMorgan Chase Bank, N.A. and BP Energy Company, were as follows:
Contract Type
 
Daily Volume
 
Total Volume
 
Fixed Price
 
Fair Value at March 31, 2018 (In thousands)
Oil swaps (Bbls)
 
 
 
 
 
 
 
 
2019
 
312

 
114,025

 
$
51.08

 
$
(749
)
2018
 
367

 
100,800

 
$
51.08

 
$
(1,172
)
     Total Oil
 
 
 
 
 
 
 
$
(1,921
)
Natural Gas swaps (MMBtu)
 
 
 
 
 
 
 
 
2020 (through March 31, 2020)
 
40,000

 
3,640,000

 
$
2.814

 
$
(483
)
2019
 
42,466

 
15,500,000

 
$2.814-$3.033

 
$
1,282

2018
 
34,124

 
9,384,000

 
$2.814-$3.033


 
$
1,607

     Total Natural Gas
 
 
 
 
 
 
 
$
2,406

Total Oil and Natural Gas
 
 
 
 
 
 
 
$
485
Derivative Assets and Liabilities Recorded at Fair Value
During the first quarter of 2018 we entered into the following contracts with JPMorgan Chase Bank, N.A.:
Contract Type
 
Daily Volume
 
Fixed Price
 
Contract Start Date
 
Contract Termination
Natural gas swap (MMBtu)
 
16,000

 
$
2.814

 
January 1, 2019
 
March 31, 2019
Natural gas swap (MMBtu)
 
32,500

 
$
2.814

 
April 1, 2019
 
December 31, 2019
Natural gas swap (MMBtu)
 
40,000

 
$
2.814

 
January 1, 2020
 
March 31, 2020
The following table summarizes the fair values of our derivative financial instruments that are recorded at fair value classified in each Level as of March 31, 2018 (in thousands). We measure the fair value of our commodity derivative contracts by applying the income approach. See Note 1—“Description of Business and Significant Accounting Policies” for our discussion regarding fair value, including inputs used and valuation techniques for determining fair values.
Description
 
Level 1
 
Level 2
 
Level 3
 
Total
Fair value of oil and natural gas derivatives - Current Assets
 
$
—

 
$
1,319

 
$
—

 
$
1,319

Fair value of oil and natural gas derivatives - Non-current Assets
 
—

 
1,087

 
—

 
1,087

Fair value of oil and natural gas derivatives - Current Liabilities
 
—

 
(1,414
)
 
—

 
(1,414
)
Fair value of oil and natural gas derivatives - Non-current Liabilities
 
—

 
(507
)
 
—

 
(507
)
Total
 
$
—

 
$
485

 
$
—

 
$
485
Offsetting Assets
We enter into oil and natural gas derivative contracts under which we have netting arrangements with each counter party. The following table discloses and reconciles the gross amounts to the amounts as presented on the Consolidated Balance Sheets for the periods ending March 31, 2018 and December 31, 2017:
 
 
March 31, 2018
 
December 31, 2017
Fair Value of Oil and Natural Gas Derivatives
(in thousands)
 
Gross
Amount
 
Amount
Offset
 
As
Presented
 
Gross
Amount
 
Amount
Offset
 
As
Presented
Fair value of oil and natural gas derivatives - Current Assets
 
$
1,693

 
$
(374
)
 
$
1,319

 
$
2,035

 
$
(1
)
 
$
2,034

Fair value of oil and natural gas derivatives - Non-current Assets
 
1,638

 
(551
)
 
1,087

 
633

 
(67
)
 
566

Fair value of oil and natural gas derivatives - Current Liabilities
 
(1,788
)
 
374

 
(1,414
)
 
(1,002
)
 
—

 
(1,002
)
Fair value of oil and natural gas derivatives - Non-current Liabilities
 
(1,058
)
 
551

 
(507
)
 
(585
)
 
68

 
(517
)
Total
 
$
485

 
$
—

 
$
485

 
$
1,081

 
$
—

 
$
1,081
Offsetting Liabilities
The following table discloses and reconciles the gross amounts to the amounts as presented on the Consolidated Balance Sheets for the periods ending March 31, 2018 and December 31, 2017:
 
 
March 31, 2018
 
December 31, 2017
Fair Value of Oil and Natural Gas Derivatives
(in thousands)
 
Gross
Amount
 
Amount
Offset
 
As
Presented
 
Gross
Amount
 
Amount
Offset
 
As
Presented
Fair value of oil and natural gas derivatives - Current Assets
 
$
1,693

 
$
(374
)
 
$
1,319

 
$
2,035

 
$
(1
)
 
$
2,034

Fair value of oil and natural gas derivatives - Non-current Assets
 
1,638

 
(551
)
 
1,087

 
633

 
(67
)
 
566

Fair value of oil and natural gas derivatives - Current Liabilities
 
(1,788
)
 
374

 
(1,414
)
 
(1,002
)
 
—

 
(1,002
)
Fair value of oil and natural gas derivatives - Non-current Liabilities
 
(1,058
)
 
551

 
(507
)
 
(585
)
 
68

 
(517
)
Total
 
$
485

 
$
—

 
$
485

 
$
1,081

 
$
—

 
$
1,081