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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

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