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Derivative Instruments and Hedging Activities | 12 Months Ended
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Dec. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities As of December 31, 2017, the Company had the following outstanding financial commodity derivatives:
|  |  |  |  |  |  | Collars |  |
|  |  |  |  |  |  | Floor |  | Ceiling |  | Basis Swaps
Type of Contract |  | Volume |  | Contract Period |  | Range |  | Weighted-Average |  | Range |  | Weighted- Average |  | Weighted- Average
Financial contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Natural gas (Leidy) |  | 17.7 |  | Bcf |  | Jan. 2018 - Dec. 2018 |  |  |  |  |  |  |  |  |  |  |  | $ | (0.71 | )
Natural gas (Transco) |  | 21.3 |  | Bcf |  | Jan. 2018 - Dec. 2019 |  |  |  |  |  |  |  |  |  |  |  | $ | 0.42 |
Crude oil (WTI/LLS) |  | 2.9 |  | Mmbbl |  | Jan. 2018 - Dec. 2018 |  | $— |  | $ | 55.00 |  |  | $63.35-$63.80 |  | $ | 63.62 |  |  |
In January 2018, we entered into the following financial commodity derivatives:
|  |  |  |  |  |  | Swaps |  | Basis Swaps
Type of Contract | Volume |  | Contract Period |  | Weighted- Average |  | Weighted- Average
Financial contracts |  |  |  |  |  |  |  |  |
Natural gas (NYMEX) | 84.4 |  |  | Bcf |  | Feb. 2018 - Dec. 2018 |  | $2.93 |  |
Natural gas (NYMEX) | 13.3 |  |  | Bcf |  | Feb. 2018 - Oct. 2018 |  | $3.10 |  |
Natural gas (Leidy) | 16.2 |  |  | Bcf |  | Feb. 2018 - Dec. 2018 |  |  |  | $(0.68)
In the tables above, natural gas prices are stated per Mcf and crude oil prices are stated per barrel. As of December 31, 2017, the Company had the following outstanding physical commodity derivatives:
Type of Contract |  | Volume |  | Contract Period |  | Weighted-Average Fixed Price
Physical contracts |  |  |  |  |  |  |  |
Natural gas purchase |  | 81.2 |  |  | Bcf |  | Jan. 2018 - Oct. 2018 |  | $3.70
Natural gas sales |  | 11.7 |  |  | Bcf |  | Jan. 2018 - Feb. 2018 |  | $4.71
In the table above, natural gas prices are stated per Mcf. In January 2018, the Company terminated certain physical purchase contracts prior to their settlement date. The termination did not have a material impact on the Consolidated Financial Statements, as the contracts were previously recognized at fair value. Effect of Derivative Instruments on the Consolidated Balance Sheet
|  |  |  | Fair Values of Derivative Instruments
|  |  |  | Derivative Assets |  | Derivative Liabilities
|  |  |  | December 31, |  | December 31,
(In thousands) |  | Balance Sheet Location |  | 2017 |  | 2016 |  | 2017 |  | 2016
Commodity contracts |  | Other assets (non-current) |  | $ | 2,239 |  |  | $ | 2,991 |  |  | $ | — |  |  | $ | — |
Commodity contracts |  | Derivative instruments (current) |  | — |  |  | — |  |  | 30,637 |  |  | 40,259 |
|  |  |  | $ | 2,239 |  |  | $ | 2,991 |  |  | $ | 30,637 |  |  | $ | 40,259 |
Offsetting of Derivative Assets and Liabilities in the Consolidated Balance Sheet
|  | December 31,
(In thousands) |  | 2017 |  | 2016
Derivative assets |  |  |  |  |  |
Gross amounts of recognized assets |  | $ | 2,239 |  |  | $ | 2,991 |
Gross amounts offset in the statement of financial position |  | — |  |  | — |
Net amounts of assets presented in the statement of financial position |  | 2,239 |  |  | 2,991 |
Gross amounts of financial instruments not offset in the statement of financial position |  | — |  |  | — |
Net amount |  | $ | 2,239 |  |  | $ | 2,991 |
Derivative liabilities |  |  |  |
Gross amounts of recognized liabilities |  | $ | 30,637 |  |  | $ | 40,259 |
Gross amounts offset in the statement of financial position |  | — |  |  | — |
Net amounts of liabilities presented in the statement of financial position |  | 30,637 |  |  | 40,259 |
Gross amounts of financial instruments not offset in the statement of financial position |  | 241 |  |  | 757 |
Net amount |  | $ | 30,878 |  |  | $ | 41,016 |
Effect of Derivative Instruments on the Consolidated Statement of Operations
|  | Year Ended December 31,
(In thousands) |  | 2017 |  | 2016 |  | 2015
Cash received (paid) on settlement of derivative instruments |  |  |  |  |  |
Gain (loss) on derivative instruments |  | $ | 8,056 |  |  | $ | (1,682 | ) |  | $ | 194,289 |
Non-cash gain (loss) on derivative instruments |  |  |  |  |  |
Gain (loss) on derivative instruments |  | 8,870 |  |  | (37,268 | ) |  | (137,603 | )
|  | $ | 16,926 |  |  | $ | (38,950 | ) |  | $ | 56,686 |
Additional Disclosures about Derivative Instruments and Hedging Activities The use of derivative instruments involves the risk that the counterparties will be unable to meet their obligations under the agreements. The Company's counterparties are primarily commercial banks and financial service institutions that management believes present minimal credit risk and its derivative contracts are with multiple counterparties to minimize its exposure to any individual counterparty. The Company performs both quantitative and qualitative assessments of these counterparties based on their credit ratings and credit default swap rates where applicable. Certain counterparties to the Company's derivative instruments are also lenders under its revolving credit facility. The Company's revolving credit facility and derivative instruments contain certain cross default and acceleration provisions that may require immediate payment of its derivative liabilities in certain situations. The Company also has netting arrangements with each of its counterparties that allow it to offset assets and liabilities from separate derivative contracts with that counterparty.

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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