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Derivative Financial Instruments and Hedging Activities | 12 Months Ended
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Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Financial Instruments and Hedging Activities | Derivative Financial Instruments and Hedging Activities Comstock uses commodity price swaps, basis swaps and collars to hedge oil and natural gas prices to manage price risk. Swaps are settled monthly based on differences between the prices specified in the instruments and the settlement prices of futures contracts. Generally, when the applicable settlement price is less than the price specified in the contract, Comstock receives a settlement from the counterparty based on the difference multiplied by the volume or amounts hedged. Similarly, when the applicable settlement price exceeds the price specified in the contract, Comstock pays the counterparty based on the difference. Comstock generally receives a settlement from the counterparty for floors when the applicable settlement price is less than the price specified in the contract, which is based on the difference multiplied by the volumes hedged. For collars, generally Comstock receives a settlement from the counterparty when the settlement price is below the floor and pays a settlement to the counterparty when the settlement price exceeds the cap. No settlement occurs when the settlement price falls between the floor and cap. All of the Company's derivative financial instruments are used for risk management purposes and, by policy, none are held for trading or speculative purposes. Comstock minimizes credit risk to counterparties of its derivative financial instruments through formal credit policies, monitoring procedures, and diversification. The Company is not required to provide any credit support to its counterparties other than cross collateralization with the assets securing its bank credit facility. None of the Company's derivative financial instruments involve payment or receipt of premiums. The Company classifies the fair value amounts of derivative financial instruments as net current or noncurrent assets or liabilities, whichever the case may be, by commodity contract. None of the Company's derivative contracts are designated as cash flow hedges. The Company recognizes cash settlements and changes in the fair value of its derivative financial instruments as a single component of other income (expenses) in the consolidated statements of operations and as separate components within cash flows from operating activities in the consolidated statements of cash flows. All of Comstock's natural gas derivative financial instruments are tied to the Henry Hub-NYMEX price index and all of its oil derivative financial instruments have been tied to the WTI-NYMEX index price. The Company had the following outstanding natural gas price derivative financial instruments at December 31, 2021:
| Future Production Period Ending December 31, |  |
| 2022 |  |  | 2023 |  | Total
Natural Gas Swap Contracts: |  |  |  |  |  |
Volume (MMBtu) | 121,300,000 |  |  |  | — |  |  | 121,300,000 |
Average Price per MMBtu | $2.67 |  |  |  |  |  | $2.67 |
Natural Gas Collar Contracts: |  |  |  |  |  |
Volume (MMBtu) | 140,925,000 |  |  |  | 6,750,000 |  |  | 147,675,000 |
Price per MMBtu: |  |  |  |  |  |
Average Ceiling | $3.91 |  |  |  | $4.03 |  |  | $3.92 |
Average Floor | $2.62 |  |  |  | $2.67 |  |  | $2.63 |
Natural Gas Basis Swap Contracts: |  |  |  |  |  |
Volume (MMBtu) | 10,950,000 |  | (1) |  | — |  |  | 10,950,000 |
Average Price per MMBtu | ($0.16) |  | (1) |  |  |  | ($0.16) |
_______________ (1)Contracts fix the differentials between NYMEX Henry Hub and the Columbia Gulf Mainline indices. The aggregate fair value of the Company's derivative financial instruments are presented on a gross basis in the accompanying consolidated balance sheets. The classification of derivative financial instruments between assets and liabilities, consists of the following:
|  |  |  | As of December 31,
Type |  | Consolidated Balance Sheet Location |  | 2021 |  | 2020
|  |  |  | (in thousands)
Asset Derivative Financial Instruments: |  |  |  |  |  |
Natural gas price derivatives |  | Derivative Financial Instruments – current |  | $ | 4,528 |  |  | $ | 8,913 |
Oil price derivatives |  | Derivative Financial Instruments – current |  | 730 |  |  | — |
|  |  |  | $ | 5,258 |  |  | $ | 8,913 |
Natural gas price derivatives |  | Derivative Financial Instruments – long-term |  | $ | — |  |  | $ | 661 |
Liability Derivative Financial Instruments: |  |  |  |  |  |
Natural gas price derivatives |  | Derivative Financial Instruments – current |  | $ | 181,215 |  |  | $ | 45,158 |
Oil price derivatives |  | Derivative Financial Instruments – current |  | 730 |  |  | 831 |
Interest rate derivatives |  | Derivative Financial Instruments – current |  | — |  |  | 1,016 |
|  |  |  | $ | 181,945 |  |  | $ | 47,005 |
Natural gas price derivatives |  | Derivative Financial Instruments – long-term |  | $ | 4,042 |  |  | $ | 1,308 |
Interest rate derivatives |  | Derivative Financial Instruments – long-term |  | — |  |  | 1,056 |
|  |  |  | $ | 4,042 |  |  | $ | 2,364 |
Gains and losses related to the change in the fair value of the Company's derivative contracts recognized in the consolidated statement of operations were as follows:
|  | Year Ended December 31,
Gain/(Loss) Recognized in Earnings on Derivatives |  | 2021 |  | 2020 |  | 2019
|  | (In thousands)
Natural gas price derivatives |  | $ | (555,636) |  |  | $ | 353 |  |  | $ | 60,694 |
Oil price derivatives |  | (7,247) |  |  | 12,059 |  |  | (8,959) |
Interest rate derivatives |  | 2,235 |  |  | (2,461) |  |  | — |
|  | $ | (560,648) |  |  | $ | 9,951 |  |  | $ | 51,735 |

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 5 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123477628&loc=d3e90205-114008 + Details
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