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Derivative Instruments
 3 Months Ended
Mar. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
The Company utilizes derivative financial instruments to manage risks related to changes in crude oil and natural gas prices. The Company’s crude oil contracts settle monthly based on the average NYMEX West Texas Intermediate crude oil index price (“NYMEX WTI”), and its natural gas contracts settle monthly based on the average NYMEX Henry Hub natural gas index price (“NYMEX HH”).
The Company primarily utilizes fixed price swaps and collars to reduce the volatility of crude oil and natural gas prices on future expected production. Swaps are designed to establish a fixed price for the volumes under contract, while collars are designed to establish a minimum price (floor) and a maximum price (ceiling) for the volumes under contract.
All derivative instruments are recorded on the Company’s Condensed Consolidated Balance Sheets as either assets or liabilities measured at their fair value (see Note 6—Fair Value Measurements). The Company has not designated any derivative instruments as hedges for accounting purposes and does not enter into such instruments for speculative trading purposes. If a derivative does not qualify as a hedge or is not designated as a hedge, the changes in fair value are recognized in the other income (expense) section of the Company’s Condensed Consolidated Statements of Operations as a net gain or loss on derivative instruments. The Company’s cash flow is only impacted when cash settlements on matured or liquidated derivative contracts result in making a payment to or receiving a payment from a counterparty. These cash settlements represent the cumulative gains and losses on the Company’s derivative instruments and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. Cash settlements are reflected as investing activities in the Company’s Condensed Consolidated Statements of Cash Flows.
On March 22, 2021, the Company entered into the Second Amendment to the Oasis Credit Facility (as defined in Note 10—Long-Term Debt) to, among other things, reduce the rolling hedging requirement and add incremental flexibility to allow for restructuring of existing hedge positions (see Note 10 — Long-Term Debt).
At March 31, 2021 (Successor), the Company had the following outstanding commodity derivative instruments:
CommoditySettlement
Period		Derivative
Instrument		VolumesWeighted Average PricesFair Value Assets (Liabilities)
Fixed Price SwapsFloorCeiling
  (In thousands)
Crude oil2021Fixed price swaps7,975,000 Bbl$42.09 $(130,125)
Crude oil2021Two-way collar459,000 Bbl$45.00 $63.82 (614)
Crude oil2022Fixed price swaps7,245,000 Bbl$42.66 (82,286)
Crude oil2022Two-way collar636,000 Bbl$45.00 $63.82 (88)
Crude oil2023Fixed price swaps5,265,000 Bbl$43.57 (39,027)
Crude oil2024Fixed price swaps434,000 Bbl$43.68 (2,654)
Natural gas2021Fixed price swaps11,000,000 MMBtu$2.84 1,174 
Natural gas2022Fixed price swaps5,430,000 MMBtu$2.82 610 
$(253,010)
Subsequent to March 31, 2021, the Company entered into additional collars for crude oil with a weighted average floor price of $48.21 per Bbl and weighted average ceiling price of $66.37 per Bbl. The commodity contracts included total notional amounts of 765,000 Bbls, 4,163,000 Bbls, 4,380,000 Bbls and 372,000 Bbls which settle in 2021, 2022, 2023 and 2024 respectively, based on NYMEX WTI. These derivative instruments do not qualify for or were not designated as hedging instruments for accounting purposes.
The following table summarizes the location and amounts of gains and losses from the Company’s commodity derivative instruments recorded in the Company’s Condensed Consolidated Statements of Operations for the periods presented (in thousands):
SuccessorPredecessor
Three Months Ended March 31, 2021Three Months Ended March 31, 2020
Statements of Operations Location
Net gain (loss) on derivative instruments$(181,515)$285,322 
In accordance with the FASB’s authoritative guidance on disclosures about offsetting assets and liabilities, the Company is required to disclose both gross and net information about instruments and transactions eligible for offset in the statement of financial position as well as instruments and transactions subject to an agreement similar to a master netting agreement. The Company’s derivative instruments are presented as assets and liabilities on a net basis by counterparty, as all counterparty contracts provide for net settlement. No margin or collateral balances are deposited with counterparties, and as such, gross amounts are offset to determine the net amounts presented in the Company’s Condensed Consolidated Balance Sheets.
The following table summarizes the location and fair value of all outstanding commodity derivative instruments recorded in the Company’s Condensed Consolidated Balance Sheets: 
Successor
March 31, 2021
CommodityBalance Sheet LocationGross Recognized AssetsGross Amount OffsetNet Recognized Fair Value Assets
(In thousands)
Derivatives liabilities:
Commodity contractsDerivative instruments — current liabilities$159,043 $(2,593)$156,450 
Commodity contractsDerivative instruments — non-current liabilities98,861 (2,301)96,560 
Total derivatives liabilities$257,904 $(4,894)$253,010 
Successor
December 31, 2020
CommodityBalance Sheet LocationGross Recognized Assets/LiabilitiesGross Amount OffsetNet Recognized Fair Value Assets/Liabilities
(In thousands)
Derivatives assets:
Commodity contractsDerivative instruments — current assets$467 $— $467 
Commodity contractsDerivative instruments — non-current assets— — — 
Total derivatives assets$467 $— $467 
Derivatives liabilities:
Commodity contractsDerivative instruments — current liabilities$59,262 $(2,318)$56,944 
Commodity contractsDerivative instruments — non-current liabilities38,426 (812)37,614 
Total derivatives liabilities$97,688 $(3,130)$94,558