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v3.23.1

Derivative Financial Instruments (Tables) | 3 Months Ended
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Mar. 31, 2023
Derivative Instruments Not Designated as Hedging Instruments [Abstract] |
Schedule of notional amounts of outstanding derivative positions | As of March 31, 2023, the Company had commodity derivative contracts outstanding through the fourth quarter of 2025 as summarized in the table below:
|  | Contract Period |  |  |  |  |  |
|  | Second Quarter 2023 |  | Third Quarter 2023 |  | Fourth Quarter 2023 |  | 2024 |  | 2025 |  |  |  |  |  |
Oil Derivatives (volumes in MBbl and prices in $ per Bbl): |  |  |  |
Swaps |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
NYMEX WTI Volumes |  | 333 |  |  | 607 |  |  | 546 |  |  | — |  |  | — |  |  |  |  |  |  |
Weighted-Average Contract Price |  | $ | 45.18 |  |  | $ | 59.77 |  |  | $ | 60.00 |  |  | $ | — |  |  | $ | — |  |  |  |  |  |  |
ICE Brent Volumes |  | 910 |  |  | 920 |  |  | 920 |  |  | 910 |  |  | — |  |  |  |  |  |  |
Weighted-Average Contract Price |  | $ | 86.50 |  |  | $ | 86.50 |  |  | $ | 86.50 |  |  | $ | 85.50 |  |  | $ | — |  |  |  |  |  |  |
Collars |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
NYMEX WTI Volumes |  | 464 |  |  | 291 |  |  | — |  |  | 919 |  |  | — |  |  |  |  |  |  |
Weighted-Average Floor Price |  | $ | 67.85 |  |  | $ | 75.00 |  |  | $ | — |  |  | $ | 75.00 |  |  | $ | — |  |  |  |  |  |  |
Weighted-Average Ceiling Price |  | $ | 81.53 |  |  | $ | 93.05 |  |  | $ | — |  |  | $ | 81.47 |  |  | $ | — |  |  |  |  |  |  |
Basis Swaps |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
WTI Midland-NYMEX WTI Volumes |  | 1,357 |  |  | 1,414 |  |  | 1,294 |  |  | 2,961 |  |  | — |  |  |  |  |  |  |
Weighted-Average Contract Price |  | $ | 0.99 |  |  | $ | 0.88 |  |  | $ | 0.88 |  |  | $ | 1.17 |  |  | $ | — |  |  |  |  |  |  |
WTI Houston MEH-NYMEX WTI Volumes |  | 431 |  |  | 361 |  |  | 296 |  |  | 877 |  |  | — |  |  |  |  |  |  |
Weighted-Average Contract Price |  | $ | 1.68 |  |  | $ | 1.59 |  |  | $ | 1.53 |  |  | $ | 1.85 |  |  | $ | — |  |  |  |  |  |  |
Roll Differential Swaps |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
NYMEX WTI Volumes |  | 1,243 |  |  | 1,304 |  |  | 1,201 |  |  | 2,188 |  |  | — |  |  |  |  |  |  |
Weighted-Average Contract Price |  | $ | 0.62 |  |  | $ | 0.64 |  |  | $ | 0.62 |  |  | $ | 0.42 |  |  | $ | — |  |  |  |  |  |  |
Gas Derivatives (volumes in BBtu and prices in $ per MMBtu): |  |  |  |
Swaps |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
NYMEX HH Volumes |  | 1,420 |  |  | 1,470 |  |  | — |  |  | — |  |  | — |  |  |  |  |  |  |
Weighted-Average Contract Price |  | $ | 5.05 |  |  | $ | 5.11 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  |  |  |
Collars |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
NYMEX HH Volumes |  | 5,181 |  |  | 6,194 |  |  | 8,362 |  |  | 19,457 |  |  | — |  |  |  |  |  |  |
Weighted-Average Floor Price |  | $ | 3.83 |  |  | $ | 3.75 |  |  | $ | 3.90 |  |  | $ | 3.71 |  |  | $ | — |  |  |  |  |  |  |
Weighted-Average Ceiling Price |  | $ | 4.68 |  |  | $ | 4.62 |  |  | $ | 5.70 |  |  | $ | 5.89 |  |  | $ | — |  |  |  |  |  |  |
IF HSC Volumes |  | 1,345 |  |  | 1,389 |  |  | 1,451 |  |  | — |  |  | — |  |  |  |  |  |  |
Weighted-Average Floor Price |  | $ | 4.25 |  |  | $ | 4.25 |  |  | $ | 4.25 |  |  | $ | — |  |  | $ | — |  |  |  |  |  |  |
Weighted-Average Ceiling Price |  | $ | 5.00 |  |  | $ | 4.95 |  |  | $ | 5.55 |  |  | $ | — |  |  | $ | — |  |  |  |  |  |  |
Basis Swaps |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
IF Waha-NYMEX HH Volumes |  | 2,462 |  |  | 2,442 |  |  | 2,337 |  |  | 20,958 |  |  | 20,501 |  |  |  |  |  |  |
Weighted-Average Contract Price |  | $ | (1.93) |  |  | $ | (1.05) |  |  | $ | (1.01) |  |  | $ | (0.86) |  |  | $ | (0.66) |  |  |  |  |  |  |
IF HSC-NYMEX HH Volumes |  | 1,774 |  |  | 1,813 |  |  | 2,008 |  |  | 10,208 |  |  | — |  |  |  |  |  |  |
Weighted-Average Contract Price |  | $ | (0.25) |  |  | $ | (0.25) |  |  | $ | (0.25) |  |  | $ | (0.33) |  |  | $ | — |  |  |  |  |  |  |
NGL Derivatives (volumes in MBbl and prices in $ per Bbl): |  |  |  |
Swaps |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
OPIS Propane Mont Belvieu Non-TET Volumes |  | 182 |  |  | 181 |  |  | 187 |  |  | — |  |  | — |  |  |  |  |  |  |
Weighted-Average Contract Price |  | $ | 36.66 |  |  | $ | 36.67 |  |  | $ | 36.66 |  |  | $ | — |  |  | $ | — |  |  |  |  |  |  |
Schedule of fair value of derivatives in accompanying balance sheets | The following table details the fair value of commodity derivative contracts recorded in the accompanying balance sheets, by category:
| As of March 31, 2023 |  | As of December 31, 2022
| (in thousands)
Derivative assets: |  |  |
Current assets | $ | 81,062 |  |  | $ | 48,677 |
Noncurrent assets | 15,373 |  |  | 24,465 |
Total derivative assets | $ | 96,435 |  |  | $ | 73,142 |
Derivative liabilities: |  |  |
Current liabilities | $ | 30,723 |  |  | $ | 56,181 |
Noncurrent liabilities | 3,639 |  |  | 1,142 |
Total derivative liabilities | $ | 34,362 |  |  | $ | 57,323 |
Schedule of the potential effects of master netting arrangements | The following table provides a reconciliation between the gross assets and liabilities reflected on the accompanying balance sheets and the potential effects of master netting arrangements on the fair value of the Company’s commodity derivative contracts:
| Derivative Assets as of |  | Derivative Liabilities as of
| March 31, 2023 |  | December 31, 2022 |  | March 31, 2023 |  | December 31, 2022
| (in thousands)
Gross amounts presented in the accompanying balance sheets | $ | 96,435 |  |  | $ | 73,142 |  |  | $ | (34,362) |  |  | $ | (57,323) |
Amounts not offset in the accompanying balance sheets | (25,293) |  |  | (26,136) |  |  | 25,293 |  |  | 26,136 |
Net amounts | $ | 71,142 |  |  | $ | 47,006 |  |  | $ | (9,069) |  |  | $ | (31,187) |
Schedule of the components of the derivative settlement (gain) loss and the net derivative (gain) loss | The following table summarizes the commodity components of the derivative settlement (gain) loss, and the net derivative (gain) loss line items presented within the accompanying unaudited condensed consolidated statements of cash flows (“accompanying statements of cash flows”) and the accompanying statements of operations, respectively:
|  |  | For the Three Months Ended March 31,
|  |  |  |  | 2023 |  | 2022
|  |  |  |  | (in thousands)
Derivative settlement (gain) loss: |  |  |  |  |  |  |
Oil contracts |  |  |  |  | $ | 6,226 |  |  | $ | 129,168 |
Gas contracts |  |  |  |  | (11,302) |  |  | 27,051 |
NGL contracts |  |  |  |  | — |  |  | 11,964 |
Total derivative settlement (gain) loss |  |  |  |  | $ | (5,076) |  |  | $ | 168,183 |
Net derivative (gain) loss: |  |  |  |  |  |  |
Oil contracts |  |  |  |  | $ | (29,167) |  |  | $ | 315,050 |
Gas contracts |  |  |  |  | (20,778) |  |  | 86,175 |
NGL contracts |  |  |  |  | (1,384) |  |  | 17,296 |
Total net derivative (gain) loss |  |  |  |  | $ | (51,329) |  |  | $ | 418,521 |

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