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Derivative Activities (Tables) | 6 Months Ended
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Jun. 30, 2021
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 June 30, 2021, 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 |  | 575,000 Mmbtu/day |  | $ | 2.78 |  |  |  |  |  |  |  |
2021 |  | Collars |  | 293,696 Mmbtu/day |  |  |  |  |  |  | $ | 2.65 |  | $ | 3.16
2021 |  | Three-way Collars |  | 309,728 Mmbtu/day |  |  |  | $ | 2.14 |  | $ | 2.47 |  | $ | 2.84
2022 |  | Swaps |  | 190,000 Mmbtu/day |  | $ | 2.82 |  |  |  |  |  |  |  |
2022 |  | Collars |  | 40,000 Mmbtu/day |  |  |  |  |  |  | $ | 2.90 |  | $ | 3.29
2022 |  | Three-way Collars |  | 200,000 Mmbtu/day |  |  |  | $ | 2.20 |  | $ | 2.72 |  | $ | 3.35
Crude Oil (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2021 |  | Swaps |  | 7,166 bbls/day |  | $ | 56.28 |  |  |  |  |  |  |  |
2022 |  | Swaps |  | 4,560 bbls/day |  | $ | 60.39 |  |  |  |  |  |  |  |
NGLs (C3-Propane) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2021 |  | Swaps |  | 6,000 bbls/day |  | $ | 0.90/gallon |  |  |  |  |  |  |  |
July – September 2021 |  | Collars |  | 5,000 bbls/day |  |  |  |  |  |  | $ | 0.95/gallon |  | $ | 1.05/gallon
NGLs (NC4-Normal Butane) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2021 |  | Swaps |  | 2,000 bbls/day |  | $ | 1.05/gallon |  |  |  |  |  |  |  |
2021 |  | Collars |  | 2,500 bbls/day |  |  |  |  |  |  | $ | 0.94/gallon |  | $ | 1.08/gallon
NGLs (C5-Natural Gasoline) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2021 |  | Swaps |  | 3,000 bbls/day |  | $ | 1.28/gallon |  |  |  |  |  |  |  |
2021 |  | Collars |  | 2,000 bbls/day |  |  |  |  |  |  | $ | 1.34/gallon |  | $ | 1.55/gallon
2022 |  | Swaps |  | 1,000 bbls/day |  | $ | 1.50/gallon |  |  |  |  |  |  |  |
2022 |  | Collars |  | 1,000 bbls/day |  |  |  |  |  |  | $ | 1.40/gallon |  | $ | 1.60/gallon
(1) We also sold natural gas call swaptions of 180,000 Mmbtu/day for 2022 at a weighted average price of $2.86. In addition, we sold oil call swaptions of 1,000 bbls per day for 2022 at a weighted average price of $54.00.
Combined Fair Value of Derivatives, by Consolidated Balance Sheets | The tables below provide additional information relating to our master netting arrangements with our derivative counterparties (in thousands):
|  |  | June 30, 2021 |
|  |  | 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 |  | $ | 7,453 |  |  | $ | (7,856 | ) |  | $ | (403 | )
| –collars |  |  | 114 |  |  |  | (114 | ) |  |  | — |
| –three-way collars |  |  | 12 |  |  |  | (12 | ) |  |  | — |
| –basis swaps |  |  | 28,810 |  |  |  | (15,453 | ) |  |  | 13,357 |
Crude oil | –swaps |  |  | 33 |  |  |  | (472 | ) |  |  | (439 | )
NGLs | –C3 propane spread swaps |  |  | 6,807 |  |  |  | (6,807 | ) |  |  | — |
| –C3 propane collars |  |  | — |  |  |  | (219 | ) |  |  | (219 | )
| –NC4 butane collars |  |  | — |  |  |  | (944 | ) |  |  | (944 | )
| −C5 natural gasoline swaps |  |  | — |  |  |  | (439 | ) |  |  | (439 | )
| −C5 natural gasoline collars |  |  | — |  |  |  | (962 | ) |  |  | (962 | )
Freight | −swaps |  |  | 57 |  |  |  | (10 | ) |  |  | 47 |
Divestiture contingent consideration |  |  | 37,350 |  |  |  | — |  |  |  | 37,350 |
|  |  | $ | 80,636 |  |  | $ | (33,288 | ) |  | $ | 47,348 |
|  |  | June 30, 2021 |
|  |  | 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 |  | $ | (122,709 | ) |  | $ | 7,856 |  |  | $ | (114,853 | )
| –swaptions |  |  | (22,135 | ) |  |  | — |  |  |  | (22,135 | )
| –collars |  |  | (31,242 | ) |  |  | 114 |  |  |  | (31,128 | )
| –three-way collars |  |  | (62,594 | ) |  |  | 12 |  |  |  | (62,582 | )
| –basis swaps |  |  | (3,123 | ) |  |  | 15,453 |  |  |  | 12,330 |
Crude oil | –swaps |  |  | (28,323 | ) |  |  | 472 |  |  |  | (27,851 | )
| –swaptions |  |  | (4,279 | ) |  |  | — |  |  |  | (4,279 | )
NGLs | –C3 propane spread swaps |  |  | (6,431 | ) |  |  | 6,807 |  |  |  | 376 |
| –C3 propane swaps |  |  | (8,490 | ) |  |  | — |  |  |  | (8,490 | )
| –C3 collars |  |  | (1,092 | ) |  |  | 219 |  |  |  | (873 | )
| –NC4 butane swaps |  |  | (2,744 | ) |  |  | — |  |  |  | (2,744 | )
| –NC4 butane collars |  |  | (3,413 | ) |  |  | 944 |  |  |  | (2,469 | )
| –C5 natural gasoline swaps |  |  | (7,028 | ) |  |  | 439 |  |  |  | (6,589 | )
| –C5 natural gasoline collars |  |  | (1,309 | ) |  |  | 962 |  |  |  | (347 | )
Freight | –swaps |  |  | (20 | ) |  |  | 10 |  |  |  | (10 | )
|  |  | $ | (304,932 | ) |  | $ | 33,288 |  |  | $ | (271,644 | )
|  |  | 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 swaps |  |  | 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 swaps |  |  | (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 | )
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 (Loss) Income |
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Commodity swaps |  | $ | (172,566 | ) |  | $ | 5,484 |  |  | $ | (225,330 | ) |  | $ | 233,838 |
Swaptions |  |  | (19,268 | ) |  |  | (2,019 | ) |  |  | (16,612 | ) |  |  | (1,353 | )
Three-way collars |  |  | (53,705 | ) |  |  | (6,200 | ) |  |  | (52,832 | ) |  |  | (17,562 | )
Collars |  |  | (38,934 | ) |  |  | 2,557 |  |  |  | (52,222 | ) |  |  | 2,557 |
Calls |  |  | — |  |  |  | (33 | ) |  |  | (775 | ) |  |  | 242 |
Basis swaps |  |  | 17,368 |  |  |  | (5,180 | ) |  |  | 19,523 |  |  |  | 16,163 |
Freight swaps |  |  | (38 | ) |  |  | (912 | ) |  |  | (704 | ) |  |  | (7,013 | )
Divestiture contingent consideration |  |  | 17,460 |  |  |  | — |  |  |  | 21,390 |  |  |  | — |
Total |  | $ | (249,683 | ) |  | $ | (6,303 | ) |  | $ | (307,562 | ) |  | $ | 226,872 |

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