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v3.19.3.a.u2

Derivative Activities (Tables) | 12 Months Ended
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Dec. 31, 2019
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, 2019, excluding our basis and freight swaps which are discussed separately below:
Period |  | Contract Type |  | Volume Hedged |  | Weighted Average Hedge Price
Natural Gas |  |  |  |  |  |
2020 |  | Swaps |  | 1,000,984 Mmbtu/day |  | $ 2.64 (1)
2021 |  | Swaps |  | 50,000 Mmbtu/day |  | $ 2.62 (1)
Crude Oil |  |  |  |  |  |
2020 |  | Swaps |  | 7,995 bbls/day |  | $ 58.27 (1)
2021 |  | Swaps |  | 1,000 bbls/day |  | $ 55.00 (1)
April-September, 2020 |  | Calls |  | 500 bbls/day |  | $ 59.00
NGLs (NC4-Normal Butane) |  |  |  |  |  |
January-March, 2020 |  | Swaps |  | 659 bbls/day |  | $ 0.73/gallon
NGLs (C5-Natural Gasoline) |  |  |  |  |  |
January-March, 2020 |  | Swaps |  | 4,297 bbls/day |  | $ 1.21/gallon
(1) We also sold natural gas call swaptions of 140,000 Mmbtu/day for March-December 2020 at a weighted average price of $2.53 and 100,000 Mmbtu per day for 2021 at a weighted average price of $2.69. In addition, we sold call swaptions of 3,000 bbls per day for 2021 at a weighted average price of $56.50.
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, 2019 and 2018 is summarized below (in thousands). As of December 31, 2019, we are conducting derivative activities with twenty counterparties, of which all but three 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, 2019 |
|  |  | 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 |  | $ | 134,364 |  |  | $ | (2,913 | ) |  | $ | 131,451 |
| –swaptions |  |  | — |  |  |  | (1,325 | ) |  |  | (1,325 | )
| –basis swaps |  |  | 10,766 |  |  |  | (1,092 | ) |  |  | 9,674 |
Crude oil | –swaps |  |  | 3,893 |  |  |  | (4,794 | ) |  |  | (901 | )
| –swaptions |  |  | — |  |  |  | (1,597 | ) |  |  | (1,597 | )
| –calls |  |  | — |  |  |  | (349 | ) |  |  | (349 | )
NGLs | –C3 propane spread swaps |  |  | 1,913 |  |  |  | (1,913 | ) |  |  | — |
| –NC4 butane swaps |  |  | 167 |  |  |  | — |  |  |  | 167 |
| –C5 natural gasoline swaps |  |  | 60 |  |  |  | (127 | ) |  |  | (67 | )
Freight | –swaps |  |  | 1,529 |  |  |  | (1,028 | ) |  |  | 501 |
|  |  | $ | 152,692 |  |  | $ | (15,138 | ) |  | $ | 137,554 |
|  |  | December 31, 2019 |
|  |  | 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 |  | $ | (1,657 | ) |  | $ | 2,913 |  |  | $ | 1,256 |
| –swaptions |  |  | (2,594 | ) |  |  | 1,325 |  |  |  | (1,269 | )
| –basis swaps |  |  | (1,371 | ) |  |  | 1,092 |  |  |  | (279 | )
Crude oil | –swaps |  |  | (4,814 | ) |  |  | 4,794 |  |  |  | (20 | )
| –swaptions |  |  | (2,254 | ) |  |  | 1,597 |  |  |  | (657 | )
| –calls |  |  | (349 | ) |  |  | 349 |  |  |  | — |
NGLs | –C3 propane spread swaps |  |  | (16,040 | ) |  |  | 1,913 |  |  |  | (14,127 | )
| –C5 natural gasoline swaps |  |  | (127 | ) |  |  | 127 |  |  |  | — |
Freight | –swaps |  |  | — |  |  |  | 1,028 |  |  |  | 1,028 |
|  |  | $ | (29,206 | ) |  | $ | 15,138 |  |  | $ | (14,068 | )
|  |  | 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 | )
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 |
|  | 2019 |  |  | 2018 |  |  | 2017 |
Commodity swaps |  | $ | 219,968 |  |  | $ | (57,950 | ) |  | $ | 181,095 |
Swaptions |  |  | 333 |  |  |  | (6,556 | ) |  |  | 6,534 |
Collars |  |  | (3,903 | ) |  |  | 17,583 |  |  |  | 18,132 |
Basis swaps |  |  | 6,661 |  |  |  | (1,104 | ) |  |  | (4,647 | )
Puts |  |  | — |  |  |  | — |  |  |  | 10,929 |
Calls |  |  | (349 | ) |  |  | (2,653 | ) |  |  | 987 |
Freight swaps |  |  | 3,971 |  |  |  | (512 | ) |  |  | 320 |
Total |  | $ | 226,681 |  |  | $ | (51,192 | ) |  | $ | 213,350 |

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