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v3.21.2

Derivative Activities (Tables) | 9 Months Ended
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Sep. 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 September 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 |  | 583,152 Mmbtu/day |  | $ | 2.84 |  |  |  |  |  |  |  |
2021 |  | Collars |  | 227,391 Mmbtu/day |  |  |  |  |  |  | $ | 2.87 |  | $ | 3.42
2021 |  | Three-way Collars |  | 339,457 Mmbtu/day |  |  |  | $ | 2.26 |  | $ | 2.62 |  | $ | 3.04
2022 |  | Swaps |  | 382,329 Mmbtu/day |  | $ | 3.11 |  |  |  |  |  |  |  |
2022 |  | Collars |  | 213,438 Mmbtu/day |  |  |  |  |  |  | $ | 3.26 |  | $ | 3.70
2022 |  | Three-way Collars |  | 251,781 Mmbtu/day |  |  |  | $ | 2.37 |  | $ | 3.03 |  | $ | 3.77
January - March 2022 |  | Calls |  | 80,000 Mmbtu/day |  |  |  |  |  |  |  |  |  | $ | 6.02
2023 |  | Swaps |  | 60,000 Mmbtu/day |  | $ | 3.27 |  |  |  |  |  |  |  |
Crude Oil |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2021 |  | Swaps |  | 7,500 bbls/day |  | $ | 56.92 |  |  |  |  |  |  |  |
2022 |  | Swaps |  | 5,811 bbls/day |  | $ | 59.59 |  |  |  |  |  |  |  |
2023 |  | Swaps |  | 500 bbls/day |  | $ | 63.50 |  |  |  |  |  |  |  |
NGLs (C3-Propane) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2021 |  | Swaps |  | 6,000 bbls/day |  | $ | 1.17/gallon |  |  |  |  |  |  |  |
2021 |  | Collars |  | 4,000 bbls/day |  |  |  |  |  |  | $ | 1.00/gallon |  | $ | $1.20/gallon
NGLs (NC4-Normal Butane) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2021 |  | Swaps |  | 2,663 bbls/day |  | $ | 1.17/gallon |  |  |  |  |  |  |  |
2021 |  | Collars |  | 2,000 bbls/day |  |  |  |  |  |  | $ | 1.00/gallon |  | $ | 1.20/gallon
NGLs (C5-Natural Gasoline) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2021 |  | Swaps |  | 2,000 bbls/day |  | $ | 1.41/gallon |  |  |  |  |  |  |  |
2021 |  | Collars |  | 3,000 bbls/day |  |  |  |  |  |  | $ | 1.35/gallon |  | $ | 1.55/gallon
January - March 2022 |  | Swaps |  | 2,656 bbls/day |  | $ | 1.59/gallon |  |  |  |  |  |  |  |
January - March 2022 |  | Collars |  | 2,000 bbls/day |  |  |  |  |  |  | $ | 1.45/gallon |  | $ | 1.60/gallon
(1) | We also sold natural gas call swaptions of 80,000 Mmbtu/day for 2022 at a weighted average price of $2.80 and 70,000 Mmbtu/day for 2023 at a weighted average price of $3.04.
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):
|  |  | September 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 |  | $ | 5,574 |  |  | $ | (5,574 | ) |  | $ | — |
| –collars |  |  | 193 |  |  |  | (193 | ) |  |  | — |
| –three-way collars |  |  | 2 |  |  |  | (2 | ) |  |  | — |
| –basis swaps |  |  | 15,633 |  |  |  | (12,187 | ) |  |  | 3,446 |
Crude oil | –swaps |  |  | 10 |  |  |  | (10 | ) |  |  | — |
NGLs | –C3 propane spread swaps |  |  | 8,367 |  |  |  | (8,367 | ) |  |  | — |
| −C5 natural gasoline swaps |  |  | 17 |  |  |  | (17 | ) |  |  | — |
Freight | −swaps |  |  | 27 |  |  |  | (30 | ) |  |  | (3 | )
Divestiture contingent consideration |  |  | 50,220 |  |  |  | — |  |  |  | 50,220 |
|  |  | $ | 80,043 |  |  | $ | (26,380 | ) |  | $ | 53,663 |
|  |  | September 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 |  | $ | (359,243 | ) |  | $ | 5,574 |  |  | $ | (353,669 | )
| –swaptions |  |  | (60,132 | ) |  |  | — |  |  |  | (60,132 | )
| –collars |  |  | (93,418 | ) |  |  | 193 |  |  |  | (93,225 | )
| –three-way collars |  |  | (200,479 | ) |  |  | 2 |  |  |  | (200,477 | )
| –calls |  |  | (10,018 | ) |  |  | — |  |  |  | (10,018 | )
| –basis swaps |  |  | (7,160 | ) |  |  | 12,187 |  |  |  | 5,027 |
Crude oil | –swaps |  |  | (34,274 | ) |  |  | 10 |  |  |  | (34,264 | )
NGLs | –C3 propane spread swaps |  |  | (7,973 | ) |  |  | 8,367 |  |  |  | 394 |
| –C3 propane swaps |  |  | (6,140 | ) |  |  | — |  |  |  | (6,140 | )
| –C3 collars |  |  | (3,787 | ) |  |  | — |  |  |  | (3,787 | )
| –NC4 butane swaps |  |  | (3,991 | ) |  |  | — |  |  |  | (3,991 | )
| –NC4 butane collars |  |  | (2,797 | ) |  |  | — |  |  |  | (2,797 | )
| –C5 natural gasoline swaps |  |  | (3,908 | ) |  |  | 17 |  |  |  | (3,891 | )
| –C5 natural gasoline collars |  |  | (3,728 | ) |  |  | — |  |  |  | (3,728 | )
Freight | –swaps |  |  | (53 | ) |  |  | 30 |  |  |  | (23 | )
|  |  | $ | (797,101 | ) |  | $ | 26,380 |  |  | $ | (770,721 | )
|  |  | 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 September 30, |  |  | Nine Months Ended September 30, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Commodity swaps |  | $ | (332,855 | ) |  | $ | (91,425 | ) |  | $ | (558,186 | ) |  | $ | 142,413 |
Swaptions |  |  | (33,718 | ) |  |  | (14,166 | ) |  |  | (50,329 | ) |  |  | (15,520 | )
Three-way collars |  |  | (173,344 | ) |  |  | (20,705 | ) |  |  | (226,176 | ) |  |  | (38,267 | )
Collars |  |  | (106,340 | ) |  |  | (16,893 | ) |  |  | (158,562 | ) |  |  | (14,336 | )
Calls |  |  | (10,018 | ) |  |  | (255 | ) |  |  | (10,793 | ) |  |  | (12 | )
Basis swaps |  |  | (8,469 | ) |  |  | 15,587 |  |  |  | 11,054 |  |  |  | 31,750 |
Freight swaps |  |  | (346 | ) |  |  | 2,737 |  |  |  | (1,050 | ) |  |  | (4,276 | )
Divestiture contingent consideration |  |  | 12,870 |  |  |  | 430 |  |  |  | 34,260 |  |  |  | 430 |
Total |  | $ | (652,220 | ) |  | $ | (124,690 | ) |  | $ | (959,782 | ) |  | $ | 102,182 |

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