XML 46 R32.htm IDEA: XBRL DOCUMENT
v3.23.1

Derivative Instruments (Tables) | 3 Months Ended
--- | ---
Mar. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of Outstanding Commodity Derivative Instruments | At March 31, 2023, the Company had the following outstanding commodity derivative contracts:
Commodity |  | Settlement Period |  | Derivative Instrument |  |  |  | Volumes |  | Weighted Average Prices |  |
|  |  |  |  | Fixed-Price Swaps |  |  |  | Floor |  | Ceiling |
Crude oil |  | 2023 |  | Two-way collar |  |  |  | 4,583,500 |  | Bbl |  |  |  |  |  | $ | 45.79 |  |  | $ | 64.46 |  |  |
Crude oil |  | 2023 |  | Fixed-price swaps |  |  |  | 4,032,000 |  | Bbl |  | $ | 51.33 |  |  |  |  |  |  |  |  |
Natural gas |  | 2023 |  | Two-way collar |  |  |  | 4,299,000 |  | MMBtu |  |  |  |  |  | $ | 2.31 |  |  | $ | 2.86 |  |  |
Natural gas basis(1) |  | 2023 |  | Fixed-price swaps |  |  |  | 1,365,000 |  | MMbtu |  | $ | (0.22) |  |  |  |  |  |  |  |  |
__________________ (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. Subsequent to March 31, 2023, the Company entered into the following commodity derivative contracts:
|  |  |  |  |  |  |  |  |  | Weighted Average Prices
Commodity |  | Settlement Period |  | Derivative Instrument |  | Volumes |  | Floor |  | Ceiling
Crude oil |  | 2023 |  | Two-way collar |  | 736,000 |  |  | Bbl |  | $ | 65.00 |  |  | $ | 88.51 |
Crude oil |  | 2024 |  | Two-way collar |  | 640,000 |  |  | Bbl |  | $ | 65.00 |  |  | $ | 80.13 |
Schedule of 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 March 31, |  |
Derivative Instrument |  | Statements of Operations Location |  | 2023 |  | 2022 |  |  |  |
|  |  |  | (In thousands)
Commodity derivatives |  | Net gain (loss) on derivative instruments |  | $ | 65,840 |  |  | $ | (384,872) |  |  |  |  |
Commodity derivatives (buy/sell transportation contracts)(1) |  | Gathering, processing and transportation expenses |  | 11,157 |  |  | — |  |  |  |  |
Contingent consideration |  | Net gain (loss) on derivative instruments |  | 1,094 |  |  | 16,950 |  |  |  |  |
__________________ (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 three months ended March 31, 2023.
Schedule 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:
|  |  |  | March 31, 2023
Derivative Instrument |  | Balance Sheet Location |  | Gross Amount |  | Gross Amount Offset |  | Net Amount
|  |  |  | (In thousands)
Derivatives assets: |  |  |  |  |  |  |  |
Commodity derivatives |  | Derivative instruments — current assets |  | $ | 4,573 |  |  | $ | (3,628) |  |  | $ | 945 |
Contingent consideration |  | Derivative instruments — current assets |  | 23,783 |  |  | — |  |  | 23,783 |
Contingent consideration |  | Derivative instruments — non-current assets |  | 38,231 |  |  | — |  |  | 38,231 |
Total derivatives assets |  | $ | 66,587 |  |  | $ | (3,628) |  |  | $ | 62,959 |
Derivatives liabilities: |  |  |  |  |  |  |  |
Commodity derivatives |  | Derivative instruments — current liabilities |  | $ | 175,973 |  |  | $ | (3,628) |  |  | $ | 172,345 |
Commodity derivatives (buy/sell transportation contracts) |  | Derivative instruments — current liabilities |  | 3,277 |  |  | — |  |  | 3,277 |
Commodity derivatives (buy/sell transportation contracts) |  | Derivative instruments — non-current liabilities |  | 260 |  |  | — |  |  | 260 |
Total derivatives liabilities |  | $ | 179,510 |  |  | $ | (3,628) |  |  | $ | 175,882 |
|  |  |  | December 31, 2022
Derivative Instrument |  | Balance Sheet Location |  | Gross Amount |  | Gross Amount Offset |  | Net Amount
|  |  |  | (In thousands)
Derivatives assets: |  |  |  |  |  |  |  |
Commodity derivatives |  | 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 |  | 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 |
Schedule 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:
|  |  |  | March 31, 2023
Derivative Instrument |  | Balance Sheet Location |  | Gross Amount |  | Gross Amount Offset |  | Net Amount
|  |  |  | (In thousands)
Derivatives assets: |  |  |  |  |  |  |  |
Commodity derivatives |  | Derivative instruments — current assets |  | $ | 4,573 |  |  | $ | (3,628) |  |  | $ | 945 |
Contingent consideration |  | Derivative instruments — current assets |  | 23,783 |  |  | — |  |  | 23,783 |
Contingent consideration |  | Derivative instruments — non-current assets |  | 38,231 |  |  | — |  |  | 38,231 |
Total derivatives assets |  | $ | 66,587 |  |  | $ | (3,628) |  |  | $ | 62,959 |
Derivatives liabilities: |  |  |  |  |  |  |  |
Commodity derivatives |  | Derivative instruments — current liabilities |  | $ | 175,973 |  |  | $ | (3,628) |  |  | $ | 172,345 |
Commodity derivatives (buy/sell transportation contracts) |  | Derivative instruments — current liabilities |  | 3,277 |  |  | — |  |  | 3,277 |
Commodity derivatives (buy/sell transportation contracts) |  | Derivative instruments — non-current liabilities |  | 260 |  |  | — |  |  | 260 |
Total derivatives liabilities |  | $ | 179,510 |  |  | $ | (3,628) |  |  | $ | 175,882 |
|  |  |  | December 31, 2022
Derivative Instrument |  | Balance Sheet Location |  | Gross Amount |  | Gross Amount Offset |  | Net Amount
|  |  |  | (In thousands)
Derivatives assets: |  |  |  |  |  |  |  |
Commodity derivatives |  | 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 |  | 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 |

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative and other financial assets that are subject to offsetting, including master netting arrangements. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 3 -URI https://asc.fasb.org/extlink&oid=51824906&loc=SL20225862-175312 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 4 -URI https://asc.fasb.org/extlink&oid=51824906&loc=SL20225877-175312 + Details
Name: | us-gaap_OffsettingAssetsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative and other financial liabilities that are subject to offsetting, including master netting arrangements. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 3 -URI https://asc.fasb.org/extlink&oid=51824906&loc=SL20225862-175312 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 4 -URI https://asc.fasb.org/extlink&oid=51824906&loc=SL20225877-175312 + Details
Name: | us-gaap_OffsettingLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5624163-113959 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5580258-113959 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 2 -URI https://asc.fasb.org/extlink&oid=125515794&loc=d3e41620-113959 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5579245-113959 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -URI https://asc.fasb.org/extlink&oid=125515794&loc=d3e41638-113959 Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 8 -URI https://asc.fasb.org/extlink&oid=125515794&loc=d3e41678-113959 Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -URI https://asc.fasb.org/extlink&oid=125515794&loc=d3e41641-113959 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5624171-113959 Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5579240-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative instrument not designated or qualifying as hedging instrument. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5624171-113959 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4CC -URI https://asc.fasb.org/extlink&oid=125515794&loc=SL109998890-113959 + Details
Name: | us-gaap_ScheduleOfOtherDerivativesNotDesignatedAsHedgingInstrumentsStatementsOfFinancialPerformanceAndFinancialPositionLocationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration