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Derivative Financial Instruments | 3 Months Ended
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Mar. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS At March 31, 2020, 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 for the collars and fixed price for the swaps. At March 31, 2020, each contract was set to expire at varying times during 2020, 2021 and 2022. The Company had no open contracts associated with natural gas or natural gas liquids (“NGL”) prices at March 31, 2020. The following is a summary of the Company’s open costless collar contracts for oil at March 31, 2020.
Commodity |  | Calculation Period |  | Notional Quantity (Bbl) |  | Weighted Average Price Floor ($/Bbl) |  | Weighted Average Price Ceiling ($/Bbl) |  | Fair Value of Asset (Liability) (thousands)
Oil |  | 04/01/2020 - 12/31/2020 |  | 5,205,000 |  |  | $ | 47.68 |  |  | $ | 66.69 |  |  | $ | 95,553 |
Total open costless collar contracts |  |  |  |  |  |  |  | $ | 95,553 |
The following is a summary of the Company’s open basis swap contracts for oil at March 31, 2020.
Commodity |  | Calculation Period |  | Notional Quantity (Bbl) |  | Fixed Price ($/Bbl) |  | Fair Value of Asset (Liability) (thousands)
Oil Basis |  | 04/01/2020 - 12/31/2020 |  | 7,335,000 |  |  | $ | 0.61 |  |  | $ | 23,318 |
Oil Basis |  | 01/01/2021 - 12/31/2021 |  | 8,400,000 |  |  | $ | 0.87 |  |  | 8,552 |
Oil Basis |  | 01/01/2022 - 12/31/2022 |  | 5,520,000 |  |  | $ | 0.95 |  |  | 5,127 |
Total open basis swap contracts |  |  |  |  |  |  |  | $ | 36,997 |
At March 31, 2020, the Company had an aggregate asset value for open derivative financial instruments of $132.6 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 interim unaudited condensed 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 interim unaudited condensed consolidated balance sheets as of March 31, 2020 and December 31, 2019 (in thousands).
Derivative Instruments |  | Gross amounts recognized |  | Gross amounts netted in the condensed consolidated balance sheets |  | Net amounts presented in the condensed consolidated balance sheets
March 31, 2020 |  |  |  |  |  |
Current assets |  | $ | 321,607 |  |  | $ | (200,428 | ) |  | $ | 121,179 |
Other assets |  | 296,261 |  |  | (284,890 | ) |  | 11,371 |
Current liabilities |  | (200,428 | ) |  | 200,428 |  |  | — |
Long-term liabilities |  | (284,890 | ) |  | 284,890 |  |  | — |
Total |  | $ | 132,550 |  |  | $ | — |  |  | $ | 132,550 |
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 | )
The following table summarizes the location and aggregate gain (loss) of all derivative financial instruments recorded in the interim unaudited condensed consolidated statements of operations for the periods presented (in thousands). These derivative financial instruments are not designated as hedging instruments.
|  |  |  | Three Months Ended March 31,
Type of Instrument |  | Location in Condensed Consolidated Statement of Operations |  | 2020 |  | 2019
Derivative Instrument |  |  |  |  |  |
Oil |  | Revenues: Realized gain on derivatives |  | $ | 10,867 |  |  | $ | 3,366 |
Natural Gas |  | Revenues: Realized loss on derivatives |  | — |  |  | (96 | )
Realized gain on derivatives |  | 10,867 |  |  | 3,270 |
Oil |  | Revenues: Unrealized gain (loss) on derivatives |  | 136,430 |  |  | (45,444 | )
Natural Gas |  | Revenues: Unrealized loss on derivatives |  | — |  |  | (275 | )
Unrealized gain (loss) on derivatives |  | 136,430 |  |  | (45,719 | )
Total |  |  |  | $ | 147,297 |  |  | $ | (42,449 | )
In April 2020, the Company restructured a portion of its oil derivative contracts, increasing its oil volumes hedged during the period from April through December 2020. As part of this restructuring, the Company repurchased the call options on certain existing open costless collars and kept the remaining put options, which represent options to sell at a specific exercise price, exchanged certain existing open costless collars and added swaps. As a result of this restructuring process, the Company’s open oil derivative contracts for the period from April through December 2020 have changed. The restructuring transactions were executed with the same counterparties and were costless to the Company. As a result, the execution of the restructuring transactions is not expected to have a material impact on the consolidated financial statements of the Company. No changes were made to the Company’s open oil basis swaps from those positions noted above. In April 2020, the Company also entered into oil swaps for 2021 and natural gas collars for late 2020 and early 2021. The following is a summary of the Company’s open costless collar contracts for oil and natural gas at April 29, 2020.
Commodity |  | Calculation Period |  | Notional Quantity (Bbl or MMBtu) |  | Weighted Average Price Floor ($/Bbl or $/MMBtu) |  | Weighted Average Price Ceiling ($/Bbl or $/MMBtu)
Oil |  | 04/01/2020 - 12/31/2020 |  | 2,311,500 |  |  | $ | 47.94 |  |  | $ | 66.19 |
Natural Gas |  | 11/01/2020 - 12/31/2020 |  | 3,200,000 |  |  | $ | 2.52 |  |  | $ | 3.71 |
Natural Gas |  | 01/01/2021 - 03/31/2021 |  | 4,800,000 |  |  | $ | 2.52 |  |  | $ | 3.71 |
The following is a summary of the Company’s open swap contracts for oil at April 29, 2020.
Commodity |  | Calculation Period |  | Notional Quantity (Bbl) |  | Fixed Price ($/Bbl)
Oil |  | 04/01/2020 - 12/31/2020 |  | 7,620,000 |  |  | $ | 34.93 |
Oil |  | 01/01/2021 - 12/31/2021 |  | 2,040,000 |  |  | $ | 35.26 |
The following is a summary of the Company’s open put option contracts for oil at April 29, 2020.
Commodity |  | Calculation Period |  | Notional Quantity (Bbl) |  | Fixed Price ($/Bbl)
Oil |  | 04/01/2020 - 06/30/2020 |  | 391,500 |  |  | $ | 48.15 |

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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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