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Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Outstanding Commodity Derivative Instruments

At December 31, 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						2023						Two-way collar												7,823,500			Bbl																		$	45.77					$	62.25
Crude oil						2023						Fixed-price swaps												6,282,000			Bbl						$	55.00
Natural gas						2023						Two-way collar												8,799,000			MMBtu																		$	2.84					$	3.57
Natural gas						2023						Fixed-price swaps												1,800,000			MMBtu						$	4.25
Natural gas basis(1)						2023						Fixed-price swaps												5,920,000			MMbtu						$	0.39
NGL - Propane(2)						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 tables above represents the average fixed differential to NYMEX HH as stated in the related contracts, which is compared to the NNG Ventura index price for each period. If NYMEX HH 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 HH combined with the fixed differential, the Company pays the difference.

(2)    Settled based on the Conway propane price.

Schedule of Realized and Unrealized 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 Consolidated Statements of Operations for the periods presented (in thousands):

												Successor																					Predecessor
												Year Ended December 31,												Period from November 20, 2020 through December 31, 2020									Period from January 1, 2020 through November 19, 2020
Derivative Instrument						Statement of Operations Location						2022						2021
Commodity derivatives						Net gain (loss) on derivative instruments						$	(224,238)					$	(601,591)					$	(84,615)								$	233,565
Commodity derivatives (buy/sell transportation contracts)						Gathering, processing and transportation expenses(1)						7,331						—						—									—
Contingent consideration						Net gain (loss) on derivative instruments						16,110						11,950						—									—
Contingent consideration						Gain on sale of assets, net						—						32,860						—									—

__________________ 

(1)    The change in the fair value of the transportation derivative contracts was recorded as a gain in gathering, processing and transportation expenses for the year ended December 31, 2022 (Successor).

Schedule of Location and Fair Value of Outstanding Commodity Derivative Instruments

The following tables summarize the location and fair value of all outstanding commodity derivative instruments recorded in the Company’s Consolidated Balance Sheets:

												December 31, 2022
Derivative Instrument						Balance Sheet Location						Gross Recognized Assets/Liabilities						Gross Amount Offset						Net Recognized Fair Value Assets/Liabilities
												(In thousands)
Derivatives assets:
Commodity derivatives(1)						Derivative instruments — current assets						$	10,194					$	(9,414)					$	780
Contingent consideration						Derivative instruments — current assets						22,955						—						22,955
Contingent consideration						Derivative instruments — non-current assets						37,965						—						37,965
Total derivatives assets												$	71,114					$	(9,414)					$	61,700
Derivatives liabilities:
Commodity derivatives(2)						Derivative instruments — current liabilities						$	339,090					$	(9,414)					$	329,676
Commodity derivatives (buy/sell transportation contracts)						Derivative instruments — current liabilities						11,865						—						11,865
Commodity derivatives (buy/sell transportation contracts)						Derivative instruments — non-current liabilities						2,829						—						2,829
Total derivatives liabilities												$	353,784					$	(9,414)					$	344,370

												December 31, 2021
Derivative Instrument						Balance Sheet Location						Gross Recognized Assets/Liabilities						Gross Amount Offset						Net Recognized Fair Value Assets/Liabilities
												(In thousands)
Derivatives assets:
Commodity derivatives						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(3)						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

__________________ 

(1)Cash deposit received in January 2023.    

(2)Includes $24.5 million of commodity derivative liabilities paid in January 2023.

(3)Includes $27.5 million of commodity derivative liabilities paid in January 2022.

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