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Derivative Activities (Tables) | 12 Months Ended
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Dec. 31, 2021
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, 2021, excluding our basis, 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) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2022 |  | Swaps |  | 497,479 Mmbtu/day |  | $ | 3.12 |  |  |  |  |  |  |  |  |  |
2022 |  | Collars |  | 224,301 Mmbtu/day |  |  |  |  |  |  |  | $ | 3.28 |  |  | $ | 3.73 |
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 |  | 197,500 Mmbtu/day |  | $ | 3.40 |  |  |  |  |  |  |  |  |  |
2023 |  | Collars |  | 110,000 Mmbtu/day |  |  |  |  |  |  |  | $ | 3.26 |  |  | $ | 4.26 |
2023 |  | Three-way Collars |  | 70,000 Mmbtu/day |  |  |  |  | $ | 2.25 |  |  | $ | 3.25 |  |  | $ | 4.28 |
Crude Oil |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2022 |  | Swaps |  | 6,437 bbls/day |  | $ | 60.73 |  |  |  |  |  |  |  |  |  |
2023 |  | Swaps |  | 623 bbls/day |  | $ | 66.40 |  |  |  |  |  |  |  |  |  |
NGLs (C5-Natural Gasoline) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
January-June 2022 |  | Swaps |  | 2,749 bbls/day |  | $1.65/gallon |  |  |  |  |  |  |  |  |  |
January-June 2022 |  | Collars |  | 1,497 bbls/day |  |  |  |  |  |  |  | $1.53/gallon |  |  | $1.67/gallon |
(1) | We also sold natural gas call swaptions of 72,500 Mmbtu/day for 2023 at a weighted average price of $3.06 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, 2021 and 2020 is summarized below (in thousands). As of December 31, 2021, we are conducting derivative activities with fifteen 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, 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 |  | $ | 22,491 |  |  | $ | (18,111 | ) |  | $ | 4,380 |
|  | –collars |  |  | 12,378 |  |  |  | (8,600 | ) |  |  | 3,778 |
|  | –three-way collars |  |  | 12,234 |  |  |  | (8,449 | ) |  |  | 3,785 |
|  | –basis swaps |  |  | 18,092 |  |  |  | (10,487 | ) |  |  | 7,605 |
Crude oil |  | –swaps |  |  | 368 |  |  |  | (2,153 | ) |  |  | (1,785 | )
NGLs |  | –C3 propane spread |  |  | 4,153 |  |  |  | (4,153 | ) |  |  | — |
|  | –C5 natural gasoline swaps |  |  | 266 |  |  |  | (363 | ) |  |  | (97 | )
|  | –C5 natural gasoline collars |  |  | 221 |  |  |  | (221 | ) |  |  | — |
Freight |  | –swaps |  |  | 114 |  |  |  | (81 | ) |  |  | 33 |
Divestiture contingent consideration |  |  | 26,640 |  |  |  | — |  |  |  | 26,640 |
|  |  |  | $ | 96,957 |  |  | $ | (52,618 | ) |  | $ | 44,339 |
|  |  |  | December 31, 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 |  | $ | (121,759 | ) |  | $ | 18,111 |  |  | $ | (103,648 | )
|  | –swaptions |  |  | (11,149 | ) |  |  | — |  |  |  | (11,149 | )
|  | –collars |  |  | (16,579 | ) |  |  | 8,600 |  |  |  | (7,979 | )
|  | –three-way collars |  |  | (37,166 | ) |  |  | 8,449 |  |  |  | (28,717 | )
|  | –calls |  |  | (61 | ) |  |  | — |  |  |  | (61 | )
|  | –basis swaps |  |  | (2,064 | ) |  |  | 10,487 |  |  |  | 8,423 |
Crude oil |  | –swaps |  |  | (27,252 | ) |  |  | 2,153 |  |  |  | (25,099 | )
NGLs |  | –C3 propane spread |  |  | (4,030 | ) |  |  | 4,153 |  |  |  | 123 |
|  | –C5 natural gasoline swaps |  |  | (2,048 | ) |  |  | 363 |  |  |  | (1,685 | )
|  | –C5 natural gasoline collars |  |  | (1,493 | ) |  |  | 221 |  |  |  | (1,272 | )
Freight |  | –swaps |  |  | — |  |  |  | 81 |  |  |  | 81 |
|  |  |  | $ | (223,601 | ) |  | $ | 52,618 |  |  | $ | (170,983 | )
|  |  |  | 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 | )
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 (Loss) Income |
|  | Year Ended December 31, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
Commodity swaps |  | $ | (466,203 | ) |  | $ | 158,248 |  |  | $ | 219,968 |
Swaptions |  |  | (1,346 | ) |  |  | (4,955 | ) |  |  | 333 |
Collars |  |  | (117,612 | ) |  |  | 3,304 |  |  |  | (3,903 | )
Three-way collars |  |  | (137,443 | ) |  |  | (16,346 | ) |  |  | — |
Basis swaps |  |  | 33,691 |  |  |  | 48,278 |  |  |  | 6,661 |
Calls |  |  | (836 | ) |  |  | (558 | ) |  |  | (349 | )
Freight swaps |  |  | (647 | ) |  |  | (1,230 | ) |  |  | 3,971 |
Divestiture contingent consideration |  |  | 40,180 |  |  |  | 970 |  |  |  | — |
Total |  | $ | (650,216 | ) |  | $ | 187,711 |  |  | $ | 226,681 |

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