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Derivative Financial Instruments | 12 Months Ended
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Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVE FINANCIAL INSTRUMENTS | From time to time, the Company uses derivative financial instruments to mitigate its exposure to commodity price risk associated with oil, natural gas and NGL prices. The Company records derivative financial instruments on its consolidated balance sheets as either assets or liabilities measured at fair value. The Company has elected not to apply hedge accounting for its existing derivative financial instruments. As a result, the Company recognizes the change in derivative fair value between reporting periods currently in its consolidated statements of operations as an unrealized gain or loss. The fair value of the Company’s derivative financial instruments is determined using industry-standard models that consider various inputs including: (i) quoted forward prices for commodities, (ii) time value of money and (iii) current market and contractual prices for the underlying instruments, as well as other relevant economic measures. The Company has evaluated and considered the credit standings of its counterparties in determining the fair value of its derivative financial instruments. At December 31, 2019, the Company had various costless collar and swap contracts open and in place to mitigate its exposure to oil price volatility, each with a specific term (calculation period), notional quantity (volume hedged) and price floor and ceiling and fixed price for the swaps. Each contract is set to expire at varying times during 2020, 2021 and 2022. The Company had no open contracts associated with natural gas or NGL prices at December 31, 2019. The following is a summary of the Company’s open costless collar contracts for oil at December 31, 2019.
|  |  |  | Notional Quantity (Bbl or MMBtu) |  | Weighted Average Price Floor ($/Bbl or $/MMBtu) |  | Weighted Average Price Ceiling ($/Bbl or $/MMBtu) |  | Fair Value of Asset (Liability) (thousands)
Commodity |  | Calculation Period |  |  |  |
Oil |  | 01/01/2020 - 12/31/2020 |  | 7,200,000 |  |  | $ | 47.69 |  |  | $ | 66.62 |  |  | $ | 630 |
Total open costless collar contracts |  |  |  |  |  |  |  | $ | 630 |
The following is a summary of the Company’s open basis swaps contracts for oil at December 31, 2019.
Commodity |  | Calculation Period |  | Notional Quantity (Bbl or Gal) |  | Fixed Price ($/Bbl or $/Gal) |  | Fair Value of Asset (Liability) (thousands)
Oil Basis Swaps |  | 01/01/2020 - 12/31/2020 |  | 9,774,000 |  |  | $ | 0.61 |  |  | $ | (2,528 | )
Oil Basis Swaps |  | 01/01/2021 - 12/31/2021 |  | 6,480,000 |  |  | $ | 0.82 |  |  | $ | (1,523 | )
Oil Basis Swaps |  | 01/01/2022 - 12/31/2022 |  | 3,600,000 |  |  | 0.90 |  |  | $ | (460 | )
Total open swap contracts |  |  |  |  |  |  |  | $ | (4,511 | )
At December 31, 2019, the Company had an aggregate net liability value for open derivative financial instruments of $3.9 million. The Company’s derivative financial instruments are subject to master netting arrangements, and the Company’s counterparties allow for cross-commodity master netting provided the settlement dates for the commodities are the same. The Company does not present different types of commodities with the same counterparty on a net basis in its consolidated balance sheets. The following table presents the gross asset and liability fair values of the Company’s commodity price derivative financial instruments and the location of these balances in the consolidated balance sheets as of December 31, 2019 and December 31, 2018 (in thousands).
Derivative Instruments |  | Gross amounts recognized |  | Gross amounts netted in the consolidated balance sheets |  | Net amounts presented in the consolidated balance sheets
December 31, 2019 |  |  |  |  |  |
Current assets |  | $ | 442,291 |  |  | $ | (442,291 | ) |  | $ | — |
Other assets |  | 280,397 |  |  | (280,397 | ) |  | — |
Current liabilities |  | (444,188 | ) |  | 442,291 |  |  | (1,897 | )
Long-term liabilities |  | (282,381 | ) |  | 280,397 |  |  | (1,984 | )
Total |  | $ | (3,881 | ) |  | $ | — |  |  | $ | (3,881 | )
December 31, 2018 |  |  |  |  |  |
Current assets |  | $ | 53,136 |  |  | $ | (3,207 | ) |  | $ | 49,929 |
Current liabilities |  | (3,207 | ) |  | 3,207 |  |  | — |
Long-term liabilities |  | (83 | ) |  | — |  |  | (83 | )
Total |  | $ | 49,846 |  |  | $ | — |  |  | $ | 49,846 |
The following table summarizes the location and aggregate gain (loss) of all derivative financial instruments recorded in the consolidated statements of operations for the periods presented (in thousands). These derivative financial instruments are not designated as hedging instruments.
|  |  |  | Year Ended December 31,
Type of Instrument | Location in Statements of Operations | 2019 |  | 2018 |  | 2017
Derivative Instrument |  |  |  |  |  |  |  |
Oil |  | Revenues: Realized gain (loss) on derivatives |  | $ | 9,026 |  |  | $ | 3,741 |  |  | $ | (3,657 | )
Natural Gas |  | Revenues: Realized gain (loss) on derivatives |  | 456 |  |  | (1,407 | ) |  | (608 | )
NGLs |  | Revenues: Realized loss on derivatives |  | — |  |  | — |  |  | (56 | )
Realized gain (loss) on derivatives |  |  |  | 9,482 |  |  | 2,334 |  |  | (4,321 | )
Oil |  | Revenues: Unrealized (loss) gain on derivatives |  | (53,443 | ) |  | 65,991 |  |  | 2,638 |
Natural Gas |  | Revenues: Unrealized (loss) gain on derivatives |  | (284 | ) |  | (906 | ) |  | 7,077 |
Unrealized (loss) gain on derivatives |  | (53,727 | ) |  | 65,085 |  |  | 9,715 |
Total |  |  |  | $ | (44,245 | ) |  | $ | 67,419 |  |  | $ | 5,394 |

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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