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Derivative Activities (Tables)
 12 Months Ended
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

)