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v3.20.4

Derivative Activities (Tables) | 12 Months Ended
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Dec. 31, 2020
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, 2020, excluding our basis and freight swaps and divestiture contingent consideration which are discussed separately below:
Period |  | Contract Type |  | Volume Hedged |  | Weighted Average Hedge Price
|  |  |  |  |  | Swap |  | Sold Put |  | Floor |  | Ceiling
Natural Gas (1) |  |  |  |  |  |  |  |  |  |  |  |  |
2021 |  | Swaps |  | 550,000 Mmbtu/day |  | $ | 2.77 |  |  |  |  |  |
January-October 2021 |  | Collars |  | 342,237 Mmbtu/day |  |  |  |  |  |  | $ 2.51 |  | $ 3.00
2021 |  | Three-way Collars |  | 240,000 Mmbtu/day |  |  |  |  | $ 1.99 |  | $ 2.33 |  | $ 2.60
Crude Oil |  |  |  |  |  |  |  |  |  |  |  |  |
2021 |  | Swaps |  | 3,479 bbls/day |  | $ | 46.11 |  |  |  |  |  |
NGLs (C3-Propane) |  |  |  |  |  |  |  |  |  |  |  |  |
January-June 2021 |  | Swaps |  | 6,972 bbls/day |  | $ | 0.55/gallon |  |  |  |  |  |
January-June 2021 |  | Collars |  | 5,000 bbls/day |  |  |  |  |  |  | $ 0.50/gallon |  | $ 0.60/gallon
NGLs (NC4-Normal Butane) |  |  |  |  |  |  |  |  |  |  |  |  |
January-March 2021 |  | Swaps |  | 2,000 bbls/day |  | $ | 0.71/gallon |  |  |  |  |  |
January-March 2021 |  | Collars |  | 1,000 bbls/day |  |  |  |  |  |  | $ 0.60/gallon |  | $ 0.70/gallon
NGLs (C5-Natural Gasoline) |  |  |  |  |  |  |  |  |  |  |  |  |
January-September 2021 |  | Swaps |  | 2,821 bbls/day |  | $ | 0.92/gallon |  |  |  |  |  |
January-March 2021 |  | Calls |  | 1,000 bbls/day |  | $ | 0.95/gallon |  |  |  |  |  |
(1) We also sold natural gas call swaptions of 280,000 Mmbtu/day for 2022 at a weighted average price of $2.81 per Mmbtu.
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, 2020 and 2019 is summarized below (in thousands). As of December 31, 2020, we are conducting derivative activities with twenty counterparties, of which all but five 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, 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 |  | $ | 33,559 |  |  | $ | (16,821 | ) |  | $ | 16,738 |  |
| –collars |  |  | 7,016 |  |  |  | (2,329 | ) |  |  | 4,687 |  |
| –three-way collars |  |  | 535 |  |  |  | (6,139 | ) |  |  | (5,604 | ) |
| –basis swaps |  |  | 7,894 |  |  |  | (3,502 | ) |  |  | 4,392 |  |
Crude oil | –swaps |  |  | 2,465 |  |  |  | (829 | ) |  |  | 1,636 |  |
NGLs | –C3 propane spread |  |  | 4,863 |  |  |  | (4,863 | ) |  |  | — |  |
| –C3 propane collars |  |  | — |  |  |  | (107 | ) |  |  | (107 | ) |
Freight | –swaps |  |  | 2,310 |  |  |  | — |  |  |  | 2,310 |  |
Divestiture contingent consideration |  |  | 15,960 |  |  |  | — |  |  |  | 15,960 |
|  |  | $ | 74,602 |  |  | $ | (34,590 | ) |  | $ | 40,012 |  |
|  |  | December 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 |  | $ | (10,120 | ) |  | $ | 16,821 |  |  | $ | 6,701 |
| –swaptions |  |  | (9,803 | ) |  |  | — |  |  |  | (9,803 | )
| –collars |  |  | — |  |  |  | 2,329 |  |  |  | 2,329 |
| –three-way collars |  |  | (18,353 | ) |  |  | 6,139 |  |  |  | (12,214 | )
| –basis swaps |  |  | (4,197 | ) |  |  | 3,502 |  |  |  | (695 | )
Crude oil | –swaps |  |  | (5,471 | ) |  |  | 829 |  |  |  | (4,642 | )
NGLs | –C3 propane spread |  |  | (4,069 | ) |  |  | 4,863 |  |  |  | 794 |
| –C3 propane swaps |  |  | (8,243 | ) |  |  | — |  |  |  | (8,243 | )
| –C3 propane collars |  |  | (3,086 | ) |  |  | 107 |  |  |  | (2,979 | )
| –C5 natural gasoline swaps |  |  | (4,897 | ) |  |  | — |  |  |  | (4,897 | )
| –C5 natural gasoline calls |  |  | (546 | ) |  |  | — |  |  |  | (546 | )
| –NC4 butane swaps |  |  | (651 | ) |  |  | — |  |  |  | (651 | )
| –NC4 butane collars |  |  | (401 | ) |  |  | — |  |  |  | (401 | )
Freight | –swaps |  |  | (1,206 | ) |  |  | — |  |  |  | (1,206 | )
|  |  | $ | (71,043 | ) |  | $ | 34,590 |  |  | $ | (36,453 | )
|  |  | 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 for the last three years are summarized below (in thousands).
|  | Derivative Fair Value Income (Loss) |
|  | Year Ended December 31, |
|  | 2020 |  |  | 2019 |  |  | 2018 |
Commodity swaps |  | $ | 158,248 |  |  | $ | 219,968 |  |  | $ | (57,950 | )
Swaptions |  |  | (4,955 | ) |  |  | 333 |  |  |  | (6,556 | )
Collars |  |  | 3,304 |  |  |  | (3,903 | ) |  |  | 17,583 |
Three-way collars |  |  | (16,346 | ) |  |  | — |  |  |  | — |
Basis swaps |  |  | 48,278 |  |  |  | 6,661 |  |  |  | (1,104 | )
Calls |  |  | (558 | ) |  |  | (349 | ) |  |  | (2,653 | )
Freight swaps |  |  | (1,230 | ) |  |  | 3,971 |  |  |  | (512 | )
Divestiture contingent consideration |  |  | 970 |  |  |  | — |  |  |  | — |
Total |  | $ | 187,711 |  |  | $ | 226,681 |  |  | $ | (51,192 | )

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