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Derivative Activities (Tables) | 12 Months Ended
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Dec. 31, 2018
Derivative Instruments And Hedging Activities Disclosure [Abstract] |
Derivative Volumes Hedged and Average Hedge Prices | The following table sets forth the derivative volumes by year as of December 31, 2018, excluding our basis and freight swaps which are discussed separately below:
Period |  | Contract Type |  | Volume Hedged |  | Weighted Average Hedge Price
Natural Gas |  |  |  |  |  |
2019 |  | Swaps |  | 1,318,041 Mmbtu/day |  | $ 2.86
2019 |  | Swaptions |  | 113,014 Mmbtu/day |  | $ 2.81 (1)
2020 |  | Swaptions |  | 80,000 Mmbtu/day |  | $ 2.77 (1)
Crude Oil |  |  |  |  |  |
2019 |  | Swaps |  | 7,000 bbls/day |  | $ 55.26
2020 |  | Swaps |  | 1,562 bbls/day |  | $ 61.05
2019 |  | Collars |  | 1,000 bbls/day |  | $ 63.00-$ 73.03
NGLs (C3-Propane) |  |  |  |  |  |
January-June, 2019 |  | Swaps |  | 8,500 bbls/day |  | $ 0.92/gallon
January-June, 2019 |  | Collars |  | 3,983 bbls/day |  | $ 0.92-$ 1.02/gallon
NGLs (NC4-Normal Butane) |  |  |  |  |  |
January-March, 2019 |  | Swaps |  | 2,250 bbls/day |  | $ 1.22/gallon
NGLs (C5-Natural Gasoline) |  |  |  |  |  |
2019 |  | Swaps |  | 2,429 bbls/day |  | $ 1.44/gallon
(1) Contains a combined derivative instrument consisting of a fixed price swap and a sold option to extend or double the volume. In 2019, we have swaps in place for 150,000 Mmbtu per day on which the counterparty can elect to extend the contract through December 2020 at a weighted average price of $2.81. In 2020, if the counterparty elects to double the volume, we would have additional swaps covering 80,000 Mmbtu per day at a weighted average price of $2.77.
Combined Fair Value of Derivatives, by Consolidated Balance Sheets | The combined fair value of derivatives included in the accompanying consolidated balance sheets as of December 31, 2018 and 2017 is summarized below (in thousands). As of December 31, 2018, we are conducting derivative activities with twenty counterparties, of which all but four are secured lenders in our bank credit facility. We believe all of these counterparties are acceptable credit risks. At times, such risks may be concentrated with certain counterparties. The credit worthiness of our counterparties is subject to periodic review. The assets and liabilities are netted where derivatives with both gain and loss positions are held by a single counterparty and we have master netting arrangements.
|  |  | December 31, 2018 |
|  |  | Gross Amounts of Recognized Assets |  |  | Gross Amounts Offset in the Balance Sheet |  |  | Net Amounts of Assets Presented in the Balance Sheet |
Derivative assets: |  |  |  |  |  |  |  |  |  |  |  |  |
Natural gas | –swaps |  | $ | 20,834 |  |  | $ | (11,748 | ) |  | $ | 9,086 |
| –swaptions |  |  | 5,200 |  |  |  | (3,883 | ) |  |  | 1,317 |
| –basis swaps |  |  | 6,468 |  |  |  | (2,822 | ) |  |  | 3,646 |
Crude oil | –swaps |  |  | 26,481 |  |  |  | (651 | ) |  |  | 25,830 |
| –collars |  |  | 5,945 |  |  |  | (707 | ) |  |  | 5,238 |
NGLs | –C3 propane swaps |  |  | 18,719 |  |  |  | (589 | ) |  |  | 18,130 |
| –C3 propane collars |  |  | 8,538 |  |  |  | — |  |  |  | 8,538 |
| –C3 propane spread swaps |  |  | 8,984 |  |  |  | (8,868 | ) |  |  | 116 |
| –NC4 butane swaps |  |  | 4,084 |  |  |  | — |  |  |  | 4,084 |
| –C5 natural gasoline swaps |  |  | 17,371 |  |  |  | — |  |  |  | 17,371 |
Freight | –swaps |  |  | — |  |  |  | (561 | ) |  |  | (561 | )
|  |  | $ | 122,624 |  |  | $ | (29,829 | ) |  | $ | 92,795 |
|  |  | December 31, 2018 |
|  |  | Gross Amounts of Recognized (Liabilities) |  |  | Gross Amounts Offset in the Balance Sheet |  |  | Net Amounts of (Liabilities) Presented in the Balance Sheet |
Derivative (liabilities): |  |  |  |  |  |  |  |  |  |  |  |  |
Natural gas | –swaps |  | $ | (18,332 | ) |  | $ | 11,748 |  |  | $ | (6,584 | )
| –swaptions |  |  | (7,972 | ) |  |  | 3,883 |  |  |  | (4,089 | )
| –basis swaps |  |  | (1,702 | ) |  |  | 2,822 |  |  |  | 1,120 |
Crude oil | –swaps |  |  | — |  |  |  | 651 |  |  |  | 651 |
| –collars |  |  | — |  |  |  | 707 |  |  |  | 707 |
NGLs | –C3 propane swaps |  |  | — |  |  |  | 589 |  |  |  | 589 |
| –C3 propane spread swaps |  |  | (8,868 | ) |  |  | 8,868 |  |  |  | — |
Freight | –swaps |  |  | (561 | ) |  |  | 561 |  |  |  | — |
|  |  | $ | (37,435 | ) |  | $ | 29,829 |  |  | $ | (7,606 | )
|  |  | December 31, 2017 |
|  |  | Gross Amounts of Recognized Assets |  |  | Gross Amounts Offset in the Balance Sheet |  |  | Net Amounts of Assets Presented in the Balance Sheet |
Derivative assets: |  |  |  |  |  |  |  |  |  |  |  |  |
Natural gas | –swaps |  | $ | 87,794 |  |  | $ | (4,106 | ) |  | $ | 83,688 |
| –swaptions |  |  | 18,817 |  |  |  | (8,103 | ) |  |  | 10,714 |
| –basis swaps |  |  | 1,815 |  |  |  | (6,673 | ) |  |  | (4,858 | )
| –collars |  |  | 3,039 |  |  |  | (500 | ) |  |  | 2,539 |
Crude oil | –swaps |  |  | 2 |  |  |  | (7,928 | ) |  |  | (7,926 | )
NGLs | –C2 ethane swaps |  |  | 57 |  |  |  | — |  |  |  | 57 |
| –C3 propane swaps |  |  | — |  |  |  | (12,556 | ) |  |  | (12,556 | )
| –C3 propane collars |  |  | 85 |  |  |  | (85 | ) |  |  | — |
| –C3 propane spread swaps |  |  | 12,762 |  |  |  | (12,762 | ) |  |  | — |
| –NC4 butane swaps |  |  | — |  |  |  | (6,051 | ) |  |  | (6,051 | )
| –C5 natural gasoline swaps |  |  | — |  |  |  | (6,727 | ) |  |  | (6,727 | )
Freight | –swaps |  |  | 276 |  |  |  | (276 | ) |  |  | — |
|  |  | $ | 124,647 |  |  | $ | (65,767 | ) |  | $ | 58,880 |
|  |  | December 31, 2017 |
|  |  | Gross Amounts of Recognized (Liabilities) |  |  | Gross Amounts Offset in the Balance Sheet |  |  | Net Amounts of (Liabilities) Presented in the Balance Sheet |
Derivative (liabilities): |  |  |  |  |  |  |  |  |  |  |  |  |
Natural gas | –swaps |  | $ | (216 | ) |  | $ | 4,106 |  |  | $ | 3,890 |
| –swaptions |  |  | (12,283 | ) |  |  | 8,103 |  |  |  | (4,180 | )
| –basis swaps |  |  | (9,580 | ) |  |  | 6,673 |  |  |  | (2,907 | )
| –collars |  |  | — |  |  |  | 500 |  |  |  | 500 |
Crude oil | –swaps |  |  | (24,726 | ) |  |  | 7,928 |  |  |  | (16,798 | )
NGLs | –C3 propane swaps |  |  | (34,325 | ) |  |  | 12,556 |  |  |  | (21,769 | )
| –C3 propane collars |  |  | — |  |  |  | 85 |  |  |  | 85 |
| –C3 propane spread swaps |  |  | (13,983 | ) |  |  | 12,762 |  |  |  | (1,221 | )
| –NC4 butane swaps |  |  | (11,188 | ) |  |  | 6,051 |  |  |  | (5,137 | )
| –C5 natural gasoline swaps |  |  | (13,488 | ) |  |  | 6,727 |  |  |  | (6,761 | )
Freight | –swaps |  |  | — |  |  |  | 276 |  |  |  | 276 |
|  |  | $ | (119,789 | ) |  | $ | 65,767 |  |  | $ | (54,022 | )
Effects of Derivatives on Consolidated Statements of Operations | The effects of our derivatives on our consolidated statements of operations for the last three years are summarized below (in thousands).
|  | Year Ended December 31, |
|  | Derivative Fair Value (Loss) Income |
|  | 2018 |  |  | 2017 |  |  | 2016 |
Commodity swaps |  | $ | (57,950 | ) |  | $ | 181,095 |  |  | $ | (265,466 | )
Swaptions |  |  | (6,556 | ) |  |  | 6,534 |  |  |  | — |
Collars |  |  | 17,583 |  |  |  | 18,132 |  |  |  | (6,926 | )
Basis swaps |  |  | (1,104 | ) |  |  | (4,647 | ) |  |  | 29,154 |
Puts |  |  | — |  |  |  | 10,929 |  |  |  | (18,201 | )
Calls |  |  | (2,653 | ) |  |  | 987 |  |  |  | (18 | )
Freight swaps |  |  | (512 | ) |  |  | 320 |  |  |  | 66 |
Total |  | $ | (51,192 | ) |  | $ | 213,350 |  |  | $ | (261,391 | )

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