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Derivative Activities (Tables)

3 Months Ended

Mar. 31, 2020

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Volumes Hedged and Average Hedge Prices

The following table sets forth our commodity-based derivative volumes by year as of March 31, 2020, excluding our basis and freight swaps which are discussed separately below:

Period

Contract Type

Volume Hedged

Weighted Average Hedge Price

Swap

Sold Put

Floor

Ceiling

Natural Gas

2020

Swaps

1,155,600 Mmbtu/day

$

2.57 (1)

2021

Swaps

50,000 Mmbtu/day

$

2.62 (1)

April – June 2020

Calls

40,000 Mmbtu/day

$

2.30

April – October 2020

Three-way Collars

20,000 Mmbtu/day

$ 1.75

$ 2.00

$ 2.50

2021

Three-way Collars

240,000 Mmbtu/day

$ 1.99

$ 2.31

$ 2.60

Crude Oil

2020

Swaps

7,331 bbls/day

$

58.22 (1)

2021

Swaps

1,000 bbls/day

$

55.00 (1)

April – September 2020

Calls

500 bbls/day

$

59.00

NGLs (C3-Propane)

April – June 2020

Swaps

8,242 bbls/day

$

0.63/gallon

NGLs (NC4-Normal Butane)

April – September 2020

Swaps

2,913 bbls/day

$

0.57/gallon

April – September 2020

Calls

2,251 bbls/day

$

0.57/gallon

NGLs (iC4-Isobutane)

April 2020

Swaps

2,000 bbls/day

$

0.64/gallon

NGLs (C5-Natural Gasoline)

April 2020

Swaps

1,500 bbls/day

$

1.21/gallon

⁽¹⁾ We also sold natural gas call swaptions of 120,000 Mmbtu/day for July – December 2020 at a weighted average price of $2.51 and 100,000 Mmbtu/day for 2021 at a weighted average price of $2.69. In addition, we sold oil 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 March 31, 2020 and December 31, 2019 is summarized below. 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. The tables below provide additional information relating to our master netting arrangements with our derivative counterparties (in thousands):

			March 31, 2020
			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		$	192,244			$	(448	)		$	191,796
	–swaptions			—				(3,719	)			(3,719	)
	–calls			—				(23	)			(23	)
	–three-way collars			1,914				(8,612	)			(6,698	)
	–basis swaps			5,597				(436	)			5,161
Crude oil	–swaps			67,765				(4,024	)			63,741
	–swaptions			—				(11	)			(11	)
	–calls			—				(6	)			(6	)
NGLs	–C3 propane spread swaps			23,039				(22,388	)			651
	–C3 propane swaps			8,753				—				8,753
	–iC4 iso butane swaps			673				—				673
	–NC4 normal butane swaps			5,046				—				5,046
	–NC4 normal butane calls			—				(44	)			(44	)
	−C5 natural gasoline swaps			1,589				—				1,589
Freight	−swaps			—				(3,354	)			(3,354	)
			$	306,620			$	(43,065	)		$	263,555

			March 31, 2020
			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		$	(448	)		$	448			$	—
	–swaptions			(4,171	)			3,719				(452	)
	–calls			(23	)			23				—
	–three-way collars			(13,276	)			8,612				(4,664	)
	–basis swaps			(777	)			436				(341	)
Crude oil	–swaps			(4,024	)			4,024				—
	–swaptions			(11	)			11				—
	–calls			(6	)			6				—
NGLs	–C3 propane spread swaps			(22,388	)			22,388				—
	–NC4 normal butane calls			(44	)			44				—
Freight	–swaps			(4,720	)			3,354				(1,366	)
			$	(49,888	)		$	43,065			$	(6,823	)

			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	)

Effects of Derivatives on Consolidated Statements of Operations

The effects of our derivatives on our consolidated statements of operations are summarized below (in thousands):

		Derivative Fair Value Income (Loss)
		Three Months Ended March 31,
		2020				2019
Commodity swaps	$	228,354			$	(57,418		)
Swaptions		666				(3,291		)
Three-way collars		(11,362	)			—
Collars		—				(4,524		)
Calls		275				—
Basis swaps		21,343				3,415
Freight swaps		(6,101	)			87
Total	$	233,175			$	(61,731		)

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