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Derivative Instruments (Tables) | 6 Months Ended
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Jun. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of Outstanding Commodity Derivative Instruments | At June 30, 2022, the Company had the following outstanding commodity derivative instruments:
Commodity |  | Settlement Period |  | Derivative Instrument |  |  |  | Volumes |  | Weighted Average Prices |  |
|  |  |  |  | Fixed Price Swaps |  |  |  | Floor |  | Ceiling |
Crude oil |  | 2022 |  | Two-way collar |  |  |  | 2,208,000 |  | Bbl |  |  |  |  |  | $ | 50.00 |  |  | $ | 66.90 |  |  |
Crude oil |  | 2022 |  | Fixed price swaps |  |  |  | 3,496,000 |  | Bbl |  | $ | 70.00 |  |  |  |  |  |  |  |  |
Crude oil |  | 2023 |  | Two-way collar |  |  |  | 4,380,000 |  | Bbl |  |  |  |  |  | $ | 45.00 |  |  | $ | 64.88 |  |  |
Crude oil |  | 2023 |  | Fixed price swaps |  |  |  | 5,110,000 |  | Bbl |  | $ | 50.00 |  |  |  |  |  |  |  |  |
In connection with the completion of the Merger, the following outstanding commodity derivative instruments were novated to the Company on July 1, 2022:
Commodity |  | Settlement Period |  | Derivative Instrument |  |  |  | Volumes |  | Weighted Average Prices
|  |  |  |  | Fixed Price Swaps |  |  |  | Floor |  | Ceiling
Crude oil |  | 2022 |  | Fixed price swaps |  |  |  | 1,840,000 |  | Bbl |  | $ | 76.92 |  |  |  |  |  |  |
Crude oil |  | 2022 |  | Two-way collar |  |  |  | 5,628,000 |  | Bbl |  |  |  |  |  | $ | 47.20 |  |  | $ | 57.33 |
Crude oil |  | 2023 |  | Fixed price swaps |  |  |  | 1,172,000 |  | Bbl |  | $ | 76.79 |  |  |  |  |  |  |
Crude oil |  | 2023 |  | Two-way collar |  |  |  | 3,443,500 |  | Bbl |  |  |  |  |  | $ | 46.75 |  |  | $ | 58.87 |
Natural gas |  | 2022 |  | Fixed price swaps |  |  |  | 4,140,000 |  | MMBtu |  | $ | 3.97 |  |  |  |  |  |  |
Natural gas |  | 2022 |  | Two-way collar |  |  |  | 10,074,000 |  | MMBtu |  |  |  |  |  | $ | 2.68 |  |  | $ | 3.31 |
Natural gas |  | 2023 |  | Fixed price swaps |  |  |  | 1,800,000 |  | MMBtu |  | $ | 4.25 |  |  |  |  |  |  |
Natural gas |  | 2023 |  | Two-way collar |  |  |  | 8,799,000 |  | MMBtu |  |  |  |  |  | $ | 2.85 |  |  | $ | 3.57 |
Natural gas basis (1) |  | 2022 |  | Fixed price swaps |  |  |  | 620,000 |  | MMBtu |  | $ | 1.17 |  |  |  |  |  |  |
Natural gas basis (1) |  | 2023 |  | Fixed price swaps |  |  |  | 5,920,000 |  | MMBtu |  | $ | 0.40 |  |  |  |  |  |  |
NGL - Propane (2) |  | 2022 |  | Fixed price swaps |  |  |  | 7,728,000 |  | Gallons |  | $ | 1.07 |  |  |  |  |  |  |
NGL - Propane (3) |  | 2022 |  | Fixed price swaps |  |  |  | 30,912,000 |  | Gallons |  | $ | 1.04 |  |  |  |  |  |  |
NGL - Propane (3) |  | 2023 |  | Fixed price swaps |  |  |  | 7,560,000 |  | Gallons |  | $ | 1.16 |  |  |  |  |  |  |
__________________ (1) The weighted average price associated with the natural gas basis swaps shown in the table above represents the average fixed differential to NYMEX as stated in the related contracts, which is compared to the Northern Natural Gas Ventura Index (“NNG Ventura”) for each period. If NYMEX combined with the fixed differential as stated in each contract is higher than the NNG Ventura index price at any settlement date, the Company receives the difference. Conversely, if the NNG Ventura index price is higher than NYMEX combined with the fixed differential, the Company pays the difference. (2) Settled based on the Mont Belvieu propane price. (3) Settled based on the Conway propane price.
Gains and Losses from Commodity Derivative Instruments | The following table summarizes the location and amounts of gains and losses from the Company’s derivative instruments recorded in the Company’s Condensed Consolidated Statements of Operations for the periods presented:
|  |  |  | Three Months Ended June 30, |  | Six Months Ended June 30,
Derivative Instrument |  | Statements of Operations Location |  | 2022 |  | 2021 |  | 2022 |  | 2021
|  |  |  | (In thousands)
Commodity derivatives |  | Net loss on derivative instruments |  | $ | (95,573) |  |  | $ | (267,037) |  |  | $ | (480,445) |  |  | $ | (448,552) |
Contingent consideration |  | Net loss on derivative instruments |  | $ | (2,680) |  |  | $ | — |  |  | $ | 14,270 |  |  | $ | — |
Summary of Gross and Net Information about Commodity Derivative Assets | The following table summarizes the location and fair value of all outstanding derivative instruments recorded in the Company’s Condensed Consolidated Balance Sheets:
|  |  |  | June 30, 2022
Derivative Instrument |  | Balance Sheet Location |  | Gross Amount |  | Gross Amount Offset |  | Net Amount
|  |  |  | (In thousands)
Derivatives assets: |  |  |  |  |  |  |  |
Contingent consideration |  | Derivative instruments — non-current assets |  | $ | 59,080 |  |  | $ | — |  |  | $ | 59,080 |
Total derivatives assets |  | $ | 59,080 |  |  | $ | — |  |  | $ | 59,080 |
Derivatives liabilities: |  |  |  |  |  |  |  |
Commodity derivatives |  | Derivative instruments — current liabilities |  | $ | 342,330 |  |  | $ | (4,182) |  |  | $ | 338,148 |
Commodity derivatives |  | Derivative instruments — non-current liabilities |  | 152,258 |  |  | (6,956) |  |  | 145,302 |
Total derivatives liabilities |  | $ | 494,588 |  |  | $ | (11,138) |  |  | $ | 483,450 |
|  |  |  | December 31, 2021
Derivative Instrument |  | Balance Sheet Location |  | Gross Amount |  | Gross Amount Offset |  | Net Amount
|  |  |  | (In thousands)
Derivatives assets: |  |  |  |  |  |  |  |
Commodity derivative |  | Derivative instruments — non-current assets |  | $ | 55 |  |  | $ | — |  |  | $ | 55 |
Contingent consideration |  | Derivative instruments — non-current assets |  | 44,810 |  |  | — |  |  | 44,810 |
Total derivatives assets |  | $ | 44,865 |  |  | $ | — |  |  | $ | 44,865 |
Derivatives liabilities: |  |  |  |  |  |  |  |
Commodity derivatives |  | Derivative instruments — current liabilities |  | $ | 96,172 |  |  | $ | (6,725) |  |  | $ | 89,447 |
Commodity derivatives |  | Derivative instruments — non-current liabilities |  | 133,655 |  |  | (18,373) |  |  | 115,282 |
Total derivatives liabilities |  | $ | 229,827 |  |  | $ | (25,098) |  |  | $ | 204,729 |
Summary of Gross and Net Information about Commodity Derivative Liabilities | The following table summarizes the location and fair value of all outstanding derivative instruments recorded in the Company’s Condensed Consolidated Balance Sheets:
|  |  |  | June 30, 2022
Derivative Instrument |  | Balance Sheet Location |  | Gross Amount |  | Gross Amount Offset |  | Net Amount
|  |  |  | (In thousands)
Derivatives assets: |  |  |  |  |  |  |  |
Contingent consideration |  | Derivative instruments — non-current assets |  | $ | 59,080 |  |  | $ | — |  |  | $ | 59,080 |
Total derivatives assets |  | $ | 59,080 |  |  | $ | — |  |  | $ | 59,080 |
Derivatives liabilities: |  |  |  |  |  |  |  |
Commodity derivatives |  | Derivative instruments — current liabilities |  | $ | 342,330 |  |  | $ | (4,182) |  |  | $ | 338,148 |
Commodity derivatives |  | Derivative instruments — non-current liabilities |  | 152,258 |  |  | (6,956) |  |  | 145,302 |
Total derivatives liabilities |  | $ | 494,588 |  |  | $ | (11,138) |  |  | $ | 483,450 |
|  |  |  | December 31, 2021
Derivative Instrument |  | Balance Sheet Location |  | Gross Amount |  | Gross Amount Offset |  | Net Amount
|  |  |  | (In thousands)
Derivatives assets: |  |  |  |  |  |  |  |
Commodity derivative |  | Derivative instruments — non-current assets |  | $ | 55 |  |  | $ | — |  |  | $ | 55 |
Contingent consideration |  | Derivative instruments — non-current assets |  | 44,810 |  |  | — |  |  | 44,810 |
Total derivatives assets |  | $ | 44,865 |  |  | $ | — |  |  | $ | 44,865 |
Derivatives liabilities: |  |  |  |  |  |  |  |
Commodity derivatives |  | Derivative instruments — current liabilities |  | $ | 96,172 |  |  | $ | (6,725) |  |  | $ | 89,447 |
Commodity derivatives |  | Derivative instruments — non-current liabilities |  | 133,655 |  |  | (18,373) |  |  | 115,282 |
Total derivatives liabilities |  | $ | 229,827 |  |  | $ | (25,098) |  |  | $ | 204,729 |

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