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Derivative Instruments (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Outstanding commodity derivatives | As of September 30, 2021, the Company had the following outstanding financial commodity derivatives:
|  |  |  |  |  |  | Collars |  |  |  |
|  |  |  |  |  |  | Floor |  | Ceiling |  | Swaps |  |
Type of Contract |  | Volume (Mmbtu) |  |  | Contract Period |  | Range ($/Mmbtu) |  | Weighted-Average ($/Mmbtu) |  | Range ($/Mmbtu) |  | Weighted-Average ($/Mmbtu) |  | Weighted-Average ($/Mmbtu) |  |
Natural gas (NYMEX) |  | 4,600,000 |  |  | Oct. 2021-Dec. 2021 |  |  |  |  |  |  |  |  |  | $ | 2.74 |  |  |
Natural gas (NYMEX) |  | 41,400,000 |  |  | Oct. 2021-Dec. 2021 |  | $2.50 - $2.85 |  | $ | 2.68 |  |  | $2.89 - $3.80 |  | $ | 3.10 |  |  |  |  |
Natural gas (NYMEX) |  | 9,200,000 |  |  | Oct. 2021-Dec. 2021 |  |  |  |  |  |  |  |  |  | $ | 4.01 |  |  |
Natural gas (NYMEX) |  | 9,150,000 |  |  | Nov. 2021-Dec. 2021 |  |  |  |  |  |  |  |  |  | $ | 4.02 |  |  |
Natural gas (NYMEX) |  | 1,550,000 |  |  | Oct. 2021 |  | $ | — |  |  | $ | 2.50 |  |  | $ | — |  |  | $ | 2.80 |  |  |  |  |
Natural gas (NYMEX) |  | 3,100,000 |  |  | Oct. 2021 |  |  |  |  |  |  |  |  |  | $ | 2.78 |  |  |
Natural gas (NYMEX) |  | 36,000,000 |  |  | Jan. 2022-Mar. 2022 |  | $4.00 - $4.75 |  | $ | 4.38 |  |  | $5.00 - $10.32 |  | $ | 6.97 |  |  |  |  |
Natural gas (NYMEX) |  | 42,800,000 |  |  | Apr. 2022- Oct. 2022 |  | $3.00 - $3.50 |  | $ | 3.19 |  |  | $4.07 - $4.83 |  | $ | 4.30 |  |  |  |  |
Subsequent event. As a result of the Merger, the Company acquired the following outstanding financial commodity derivatives:
|  |  |  |  |  | Collars |
|  |  |  |  |  | Floor |  | Ceiling |
Type of Contract |  | Volume (Mmbtu) |  | Contract Period |  | Range ($/Mmbtu) |  | Weighted-Average ($/Mmbtu) |  | Range ($/Mmbtu) |  | Weighted-Average ($/Mmbtu) |
Natural gas (Perm EP)(1) |  | 2,760,000 |  | Oct. 2021-Dec. 2021 |  | $1.50 - $1.52 |  | $ | 1.51 |  |  | $ | — |  |  | $ | 1.80 |  |
Natural gas (Perm EP)(1) |  | 3,640,000 |  | Oct. 2021-Mar. 2022 |  | $1.80 - $1.90 |  | $ | 1.85 |  |  | $2.18 - $2.19 |  | $ | 2.18 |  |
Natural gas (Perm EP)(1) |  | 5,460,000 |  | Oct. 2021-Jun. 2022 |  | $ | — |  |  | $ | 2.40 |  |  | $2.85 - $2.90 |  | $ | 2.88 |  |
Natural gas (Perm EP)(1) |  | 7,300,000 |  | Jan. 2022-Dec. 2022 |  | $ | — |  |  | $ | 2.50 |  |  | $ | — |  |  | $ | 3.15 |  |
Natural gas (PEPL)(2) |  | 2,760,000 |  | Oct. 2021-Dec. 2021 |  | $1.70 - $1.78 |  | $ | 1.73 |  |  | $2.12 - $2.18 |  | $ | 2.14 |  |
Natural gas (PEPL)(2) |  | 7,280,000 |  | Oct. 2021-Mar. 2022 |  | $1.90 - $2.10 |  | $ | 2.00 |  |  | $2.35 - $2.44 |  | $ | 2.40 |  |
Natural gas (PEPL)(2) |  | 5,460,000 |  | Oct. 2021-Jun. 2022 |  | $ | — |  |  | $ | 2.40 |  |  | $2.81 - $2.91 |  | $ | 2.86 |  |
Natural gas (PEPL)(2) |  | 7,300,000 |  | Jan. 2022-Dec. 2022 |  | $ | — |  |  | $ | 2.60 |  |  | $ | — |  |  | $ | 3.27 |  |
Natural gas (Waha)(3) |  | 2,760,000 |  | Oct. 2021-Dec. 2021 |  | $ | — |  |  | $ | 1.50 |  |  | $1.75 - $1.76 |  | $ | 1.75 |  |
Natural gas (Waha)(3) |  | 7,280,000 |  | Oct. 2021-Mar. 2022 |  | $1.70 - $1.84 |  | $ | 1.77 |  |  | $2.10 - $2.20 |  | $ | 2.15 |  |
Natural gas (Waha)(3) |  | 5,460,000 |  | Oct. 2021-Jun. 2022 |  | $ | — |  |  | $ | 2.40 |  |  | $2.82 - $2.89 |  | $ | 2.86 |  |
Natural gas (Waha)(3) |  | 3,650,000 |  | Oct. 2021-Sep. 2022 |  | $ | — |  |  | $ | 2.40 |  |  | $ | — |  |  | $ | 2.77 |  |
Natural gas (Waha)(3) |  | 7,300,000 |  | Jan. 2022-Dec. 2022 |  | $ | — |  |  | $ | 2.50 |  |  | $ | — |  |  | $ | 3.12 |  |
________________________________________________________ (1)The index price for these collars is El Paso Natural Gas Company, Permian Basin Index (“Perm EP”) as quoted in Platt’s Inside FERC. (2)The index price for these collars is Panhandle Eastern Pipe Line, Tex/OK Mid-Continent Index (“PEPL”) as quoted in Platt’s Inside FERC. (3)The index price for these collars is Waha West Texas Natural Gas Index (“Waha”) as quoted in Platt’s Inside FERC.
|  |  |  |  |  | Collars |  |  |  |
|  |  |  |  |  | Floor |  | Ceiling |  | Basis Swaps |  | Roll Swaps
Type of Contract |  | Volume (Mbbl) |  | Contract Period |  | Range ($/Bbl) |  | Weighted-Average ($/Bbl) |  | Range ($/Bbl) |  | Weighted-Average ($/Bbl) |  | Weighted-Average ($/Bbl) |  | Weighted-Average ($/Bbl)
Crude oil (WTI) |  | 1,288 |  | Oct. 2021-Dec. 2021 |  | $29.00-$30.00 |  | $ | 29.71 |  |  | $34.15-$40.55 |  | $ | 36.86 |  |  |  |  |
Crude oil (WTI) |  | 1,274 |  | Oct. 2021-Mar. 2022 |  | $ | — |  |  | $ | 35.00 |  |  | $45.15-$45.40 |  | $ | 45.28 |  |  |  |  |
Crude oil (WTI) |  | 2,457 |  | Oct. 2021-Jun. 2022 |  | $35.00-$37.50 |  | $ | 36.11 |  |  | $48.38-$51.10 |  | $ | 49.97 |  |  |  |  |
Crude oil (WTI) |  | 3,650 |  | Oct. 2021-Sep. 2022 |  | $ | — |  |  | $ | 40.00 |  |  | $47.55-$50.89 |  | $ | 49.19 |  |  |  |  |
Crude oil (WTI) |  | 2,920 |  | Jan. 2022-Dec. 2022 |  | $ | — |  |  | $ | 57.00 |  |  | $72.20-$72.80 |  | $ | 72.43 |  |  |  |  |
Crude oil (WTI Midland)(1) |  | 1,196 |  | Oct. 2021-Dec. 2021 |  |  |  |  |  |  |  |  |  | $ | (0.65) |  |  |
Crude oil (WTI Midland)(1) |  | 1,274 |  | Oct. 2021-Mar. 2022 |  |  |  |  |  |  |  |  |  | $ | 0.11 |  |  |
Crude oil (WTI Midland)(1) |  | 2,184 |  | Oct. 2021-Jun. 2022 |  |  |  |  |  |  |  |  |  | $ | 0.25 |  |  |
Crude oil (WTI Midland)(1) |  | 2,555 |  | Oct. 2021-Sep. 2022 |  |  |  |  |  |  |  |  |  | $ | 0.38 |  |  |
Crude oil (WTI Midland)(1) |  | 2,920 |  | Jan. 2022-Dec. 2022 |  |  |  |  |  |  |  |  |  | $ | 0.05 |  |  |
Crude oil (WTI) |  | 1,274 |  | Oct. 2021-Mar. 2022 |  |  |  |  |  |  |  |  |  |  |  | $ | (0.24) |
Crude oil (WTI) |  | 1,092 |  | Oct. 2021-Jun. 2022 |  |  |  |  |  |  |  |  |  |  |  | $ | (0.20) |
Crude oil (WTI) |  | 2,555 |  | Oct. 2021-Sep. 2022 |  |  |  |  |  |  |  |  |  |  |  | $ | 0.10 |
________________________________________________________ (1)The index price the Company pays under these basis swaps is WTI Midland as quoted by Argus Americas Crude.
Effect of derivative instruments on the condensed consolidated balance sheet | Effect of Derivative Instruments on the Condensed Consolidated Balance Sheet
|  |  |  | Derivative Assets |  | Derivative Liabilities
(In thousands) |  | Balance Sheet Location |  | September 30, 2021 |  | December 31, 2020 |  | September 30, 2021 |  | December 31, 2020
Commodity contracts |  | Derivative instruments (current) |  | $ | — |  |  | $ | 26,209 |  |  | $ | 212,894 |  |  | $ | — |
Commodity contracts |  | Other liabilities (non-current) |  | — |  |  | — |  |  | 1,237 |  |  | — |
|  |  |  | $ | — |  |  | $ | 26,209 |  |  | $ | 214,131 |  |  | $ | — |
Schedule of offsetting of derivative liabilities in the condensed consolidated balance sheet | Offsetting of Derivative Assets and Liabilities in the Condensed Consolidated Balance Sheet
(In thousands) |  | September 30, 2021 |  | December 31, 2020
Derivative assets |  |  |  |
Gross amounts of recognized assets |  | $ | 953 |  |  | $ | 26,354 |
Gross amounts offset in the condensed consolidated balance sheet |  | (953) |  |  | (145) |
Net amounts of assets presented in the condensed consolidated balance sheet |  | — |  |  | 26,209 |
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet |  | — |  |  | — |
Net amount |  | $ | — |  |  | $ | 26,209 |
Derivative liabilities |  |  |  |
Gross amounts of recognized liabilities |  | $ | 215,084 |  |  | $ | 145 |
Gross amounts offset in the condensed consolidated balance sheet |  | (953) |  |  | (145) |
Net amounts of liabilities presented in the condensed consolidated balance sheet |  | 214,131 |  |  | — |
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet |  | — |  |  | — |
Net amount |  | $ | 214,131 |  |  | $ | — |
Schedule of offsetting of derivative assets in the condensed consolidated balance sheet | Offsetting of Derivative Assets and Liabilities in the Condensed Consolidated Balance Sheet
(In thousands) |  | September 30, 2021 |  | December 31, 2020
Derivative assets |  |  |  |
Gross amounts of recognized assets |  | $ | 953 |  |  | $ | 26,354 |
Gross amounts offset in the condensed consolidated balance sheet |  | (953) |  |  | (145) |
Net amounts of assets presented in the condensed consolidated balance sheet |  | — |  |  | 26,209 |
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet |  | — |  |  | — |
Net amount |  | $ | — |  |  | $ | 26,209 |
Derivative liabilities |  |  |  |
Gross amounts of recognized liabilities |  | $ | 215,084 |  |  | $ | 145 |
Gross amounts offset in the condensed consolidated balance sheet |  | (953) |  |  | (145) |
Net amounts of liabilities presented in the condensed consolidated balance sheet |  | 214,131 |  |  | — |
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet |  | — |  |  | — |
Net amount |  | $ | 214,131 |  |  | $ | — |
Effect of derivatives on the condensed consolidated statement of operations | Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(In thousands) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Cash received (paid) on settlement of derivative instruments |  |  |  |  |  |  |  |
(Loss) gain on derivative instruments |  | $ | (64,351) |  |  | $ | 14,106 |  |  | $ | (61,302) |  |  | $ | 33,529 |
Non-cash gain (loss) on derivative instruments |  |  |  |  |  |  |  |
(Loss) gain on derivative instruments |  | (136,931) |  |  | (56,359) |  |  | (240,339) |  |  | (15,746) |
|  | $ | (201,282) |  |  | $ | (42,253) |  |  | $ | (301,641) |  |  | $ | 17,783 |

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