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Derivative Instruments | 3 Months Ended
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Mar. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments | Derivative Instruments As of March 31, 2022, the Company had 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 (NYMEX) |  | 74,900,000 |  |  | Apr. 2022 - Oct. 2022 |  | $3.00 - $4.50 |  | $ | 3.61 |  |  | $4.07 - $6.68 |  | $ | 5.12 |  |  |  |  |
Natural gas (Perm EP)(1) |  | 1,820,000 |  |  | Apr. 2022 - Jun. 2022 |  | $ | — |  |  | $ | 2.40 |  |  | $2.85 - $2.90 |  | $ | 2.88 |  |  |  |  |
Natural gas (Perm EP)(1) |  | 5,500,000 |  |  | Apr. 2022 - Dec. 2022 |  | $ | — |  |  | $ | 2.50 |  |  | $ | — |  |  | $ | 3.15 |  |  |  |  |
Natural gas (PEPL)(2) |  | 1,820,000 |  |  | Apr. 2022 - Jun. 2022 |  | $ | — |  |  | $ | 2.40 |  |  | $2.81 - $2.91 |  | $ | 2.86 |  |  |  |  |
Natural gas (PEPL)(2) |  | 5,500,000 |  |  | Apr. 2022 - Dec. 2022 |  | $ | — |  |  | $ | 2.60 |  |  | $ | — |  |  | $ | 3.27 |  |  |  |  |
Natural gas (Waha)(3) |  | 1,820,000 |  |  | Apr. 2022 - Jun. 2022 |  | $ | — |  |  | $ | 2.40 |  |  | $2.82 - $2.89 |  | $ | 2.86 |  |  |  |  |
Natural gas (Waha)(3) |  | 1,830,000 |  |  | Apr. 2022 - Sep. 2022 |  | $ | — |  |  | $ | 2.40 |  |  | $ | — |  |  | $ | 2.77 |  |  |  |  |
Natural gas (Waha)(3) |  | 5,500,000 |  |  | Apr. 2022 - Dec. 2022 |  | $ | — |  |  | $ | 2.50 |  |  | $ | — |  |  | $ | 3.12 |  |  |  |  |
Natural gas (NYMEX) |  | 71,500,000 |  |  | Apr. 2022 - Dec 2022 |  | $3.50 - $4.25 |  | $ | 3.84 |  |  | $4.75 - $6.60 |  | $ | 5.39 |  |  |  |  |
Natural gas (NYMEX) |  | 52,850,000 |  |  | Nov 2022 - Mar 2023 |  | $4.00 - $4.75 |  | $ | 4.46 |  |  | $7.00 - $10.10 |  | $ | 8.37 |  |  |  |  |
________________________________________________________ (1)The index price is El Paso Natural Gas Company, Permian Basin Index (“Perm EP”) as quoted in Platt’s Inside FERC. (2)The index price is Panhandle Eastern Pipe Line, Tex/OK Mid-Continent Index (“PEPL”) as quoted in Platt’s Inside FERC. (3)The index price 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) |  | 819 |  | Apr. 2022-Jun. 2022 |  | $35.00 - $37.50 |  | $ | 36.11 |  |  | $48.38 - $51.10 |  | $ | 49.97 |  |  |  |  |
Crude oil (WTI) |  | 1,830 |  | Apr. 2022-Sep. 2022 |  | $ | — |  |  | $ | 40.00 |  |  | $47.55 - $50.89 |  | $ | 49.19 |  |  |  |  |
Crude oil (WTI) |  | 2,200 |  | Apr. 2022-Dec. 2022 |  | $ | — |  |  | $ | 57.00 |  |  | $72.20 - $72.80 |  | $ | 72.43 |  |  |  |  |
Crude oil (WTI Midland)(1) |  | 728 |  | Apr. 2022-Jun. 2022 |  |  |  |  |  |  |  |  |  | $ | 0.25 |  |  |
Crude oil (WTI Midland)(1) |  | 1,281 |  | Apr. 2022-Sep. 2022 |  |  |  |  |  |  |  |  |  | $ | 0.38 |  |  |
Crude oil (WTI Midland)(1) |  | 2,200 |  | Apr. 2022-Dec. 2022 |  |  |  |  |  |  |  |  |  | $ | 0.05 |  |  |
Crude oil (WTI) |  | 364 |  | Apr. 2022-Jun. 2022 |  |  |  |  |  |  |  |  |  |  |  | $ | (0.20) |
Crude oil (WTI) |  | 1,281 |  | Apr. 2022-Sep. 2022 |  |  |  |  |  |  |  |  |  |  |  | $ | 0.10 |
________________________________________________________ (1)The index price is WTI Midland as quoted by Argus Americas Crude. Subsequent event. In April 2022, the Company entered into the following financial commodity derivatives:
|  |  |  |  |  |  |  |  |  |  | Swaps |  |
Type of Contract |  | Volume (Mmbtu) |  |  | Contract Period |  |  |  |  |  |  |  |  |  | Weighted-Average ($/Mmbtu) |  |
Natural gas (Waha)(1) |  | 9,200,000 |  |  |  | May 2022 - Oct 2022 |  |  |  |  |  |  |  |  |  | $ | 4.77 |  |  |
________________________________________________________ (1)The index price is Waha West Texas Natural Gas Index (“Waha”) as quoted in Platt’s Inside FERC.
|  |  |  |  |  | Collars |  |  |  |
|  |  |  |  |  | Floor |  | Ceiling |  | Basis Swaps |  |
Type of Contract |  | Volume (Mbbl) |  | Contract Period |  | Range ($/Bbl) |  | Weighted-Average ($/Bbl) |  | Range ($/Bbl) |  | Weighted-Average ($/Bbl) |  | Weighted-Average ($/Bbl) |  |
Crude oil (WTI) |  | 920 |  | Oct. 2022 - Dec. 2022 |  | $ | — |  |  | $ | 65.00 |  |  | $136.25 - $145.25 |  | $ | 140.49 |  |  |  |  |
Crude oil (WTI) |  | 1,810 |  | Jan. 2023 - Jun 2023 |  | $ | — |  |  | $ | 65.00 |  |  | $116.30 - $118.30 |  | $ | 117.47 |  |  |  |  |
Crude oil (WTI Midland)(1) |  | 920 |  | Oct. 2022 - Dec. 2022 |  |  |  |  |  |  |  |  |  | $ | 0.64 |  |  |
Crude oil (WTI Midland)(1) |  | 1,810 |  | Jan. 2023 - Jun 2023 |  |  |  |  |  |  |  |  |  | $ | 0.64 |  |  |
________________________________________________________ (1)The index price is WTI Midland as quoted by Argus Americas Crude. Effect of Derivative Instruments on the Condensed Consolidated Balance Sheet
|  |  |  | Derivative Assets |  | Derivative Liabilities
(In millions) |  | Balance Sheet Location |  | March 31, 2022 |  | December 31, 2021 |  | March 31, 2022 |  | December 31, 2021
Commodity contracts |  | Derivative instruments (current) |  | $ | — |  |  | $ | 7 |  |  | $ | 372 |  |  | $ | 159 |
|  |  |  | $ | — |  |  | $ | 7 |  |  | $ | 372 |  |  | $ | 159 |
Offsetting of Derivative Assets and Liabilities in the Condensed Consolidated Balance Sheet
(In millions) |  | March 31, 2022 |  | December 31, 2021
Derivative assets |  |  |  |
Gross amounts of recognized assets |  | $ | — |  |  | $ | 27 |
Gross amounts offset in the condensed consolidated balance sheet |  | — |  |  | (20) |
Net amounts of assets presented in the condensed consolidated balance sheet |  | — |  |  | 7 |
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet |  | — |  |  | — |
Net amount |  | $ | — |  |  | $ | 7 |
Derivative liabilities |  |  |  |
Gross amounts of recognized liabilities |  | $ | 372 |  |  | $ | 179 |
Gross amounts offset in the condensed consolidated balance sheet |  | — |  |  | (20) |
Net amounts of liabilities presented in the condensed consolidated balance sheet |  | 372 |  |  | 159 |
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet |  | 58 |  |  | 35 |
Net amount |  | $ | 314 |  |  | $ | 194 |
Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations
|  | Three Months Ended March 31, |  |
(In millions) |  | 2022 |  | 2021 |  |  |  |
Cash received (paid) on settlement of derivative instruments |  |  |  |  |  |  |  |
Gas Contracts |  | $ | (42) |  |  | $ | 3 |  |  |  |  |
Oil Contracts |  | (129) |  |  | — |  |  |  |  |
Non-cash loss on derivative instruments |  |  |  |  |  |  |  |
Gas Contracts |  | (182) |  |  | (16) |  |  |  |  |
Oil Contracts |  | (38) |  |  | — |  |  |  |  |
|  | $ | (391) |  |  | $ | (13) |  |  |  |  |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 5 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123477628&loc=d3e90205-114008 + Details
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