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DERIVATIVES
 12 Months Ended
Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES DERIVATIVES
The Company periodically enters into commodity price derivative instruments to mitigate a portion of its exposure to potentially adverse market changes in commodity prices for its expected future oil, natural gas, and NGL production and the associated impact on cash flows. These instruments typically include commodity price swaps and collars, as well as, basis differential and roll differential swaps. All commodity price derivative instruments are entered into for other-than-trading purposes. The Company does not designate its commodity price derivative contracts as hedging instruments.
In a typical commodity price swap agreement, if the agreed upon published third-party index price is lower than the strike price at the time of settlement, the Company receives the difference between the index price and the agreed upon strike price. If the index price is higher than the agreed upon strike price at the time of settlement, the Company pays the difference. A swaption allows the counterparty, on a specific date, to extend an existing fixed-price swap for a certain period of time or to increase the notional volumes of an existing fixed-price swap.
A collar arrangement establishes a floor and ceiling price on future oil and gas production. When the settlement price is above the ceiling price, the Company pays the difference between the settlement price and the ceiling price. When the settlement price is below the floor price, the Company receives the difference between the settlement price and floor price. In the event that the settlement price is between the ceiling and the floor, no payment or receipt occurs.
A basis differential swap arrangement guarantees a price differential from a specified delivery point to an agreed upon reference point. The Company receives the difference between the price differential and the stated terms, if the price differential is greater than the stated terms. The Company pays the difference between the price differential and the stated terms, if the stated terms are greater than the price differential.
Certain NYMEX calendar month average (“CMA”) settlement contracts contain a “CMA Roll Adjustment,” the calculation of which includes futures prices for contracts deliverable in, at the time, two forward months. The physical trade month average is compared to the prompt month futures contracts and weighted to reflect the amount of time during the delivery month that the forward months traded as the prompt month. The weighted adjustment values are added to the basic calendar month average to arrive at the Roll Adjusted settlement price for the month. “Oil roll swaps” fix the value of the roll adjustment. If the futures curve becomes more backwardated after entering the oil roll swap, we will pay the difference between the CMA Roll Adjustment and the oil roll swap price. If the futures curve becomes more in contango, we will receive the difference between the CMA Roll Adjustment and the oil roll swap price.
A put gives the owner the right to sell the underlying commodity at a set price over the term of the contract. If the index settlement price is higher than the put fixed price, the put will expire worthless. If the settlement price is lower than the put fixed price, the Company will exercise the put and receive the difference between the settlement price and the put fixed price.
As of December 31, 2021, the Company had entered into the following commodity price derivative contracts:
Crude Oil
(NYMEX WTI)		Natural Gas
(NYMEX Henry Hub)		Natural Gas
(CIG)		Natural Gas Liquids
(OPIS)
Bbls/dayWeighted Avg. Price per BblMMBtu/dayWeighted Avg. Price per MMBtuMMBtu/dayWeighted Avg. Price per MMBtuBbls/dayWeighted Avg. Price per Bbl
1Q22
Collar15,700 
$43.83/$59.77
— — 20,000 
$2.15/$2.75
—
— 
Swap15,371 $47.39125,170 $2.9010,000 $2.13
4,000
$20.22
Oil roll swap(1)
2,000 $0.22— — — — — — 
2Q22
Collar8,800 
$38.09/$67.48
60,375 
$2.50/$3.50
20,000 
$2.15/$2.75
—
— 
Swap10,139 $49.8453,300 $2.7710,000 $2.13
4,000
$20.22
Oil roll swap(1)
2,000 $0.22— — — — — — 
3Q22
Collar7,681 
$40.35/$69.99
78,420 
$2.59/$3.68
— — 
—
— 
Swap9,359 $46.8853,300 $2.7710,000 $2.13
4,000
$20.22
Oil roll swap(1)
2,000 $0.22— — — — — — 
4Q22
Collar6,938 
$40.75/$70.99
76,929 
$2.60/$3.69
— — 
—
— 
Swap8,686 $46.7753,300 $2.7710,000 $2.13
4,000
$20.22
Oil roll swap(1)
2,000 $0.22— — — — — — 
2023
Collar260 
$40.00/$72.70
2,184 
$2.00/$3.25
— — — — 
Swap200 $46.0543,600 $2.51— — — — 
2024
Swap— — 22,309 $2.57— — — — 
_______________________________
(1) The weighted average differential represents the amount of reduction to NYMEX WTI prices for the notional volumes covered by the swap contracts.

The Company did not enter into any commodity price derivative contracts subsequent to December 31, 2021 through the filing of this report other than those novated from Bison as described in Note 14 - Subsequent Events.
Derivative Assets and Liabilities Fair Value 
The Company’s commodity price derivatives are measured at fair value and are included in the accompanying balance sheets as derivative assets and liabilities. The following table contains a summary of all the Company’s derivative positions reported on the accompanying balance sheets as well as a reconciliation between the gross assets and liabilities and the potential effects of master netting arrangements on the fair value of the Company’s commodity derivative contracts as of December 31, 2021 and 2020 (in thousands):
As of December 31,
20212020
Derivative Assets: 
Commodity contracts - current$3,393 $7,482 
Commodity contracts - noncurrent— — 
Total derivative assets3,393 7,482 
Amounts not offset in the accompanying balance sheets(3,393)(4,758)
Total derivative assets, net$— $2,724 
Derivative Liabilities:  
Commodity contracts - current$(219,804)$(6,402)
Commodity contracts - long-term(19,959)(1,330)
Total derivative liabilities(239,763)(7,732)
Amounts not offset in the accompanying balance sheets3,393 4,758 
Total derivative liabilities, net$(236,370)$(2,974)

The following table summarizes the components of the derivative gain (loss) presented on the accompanying statements of operations for the periods below (in thousands):
 Year Ended December 31,
 202120202019
Derivative cash settlement gain (loss): 
Oil contracts$(215,057)$50,133 $1,185 
Gas contracts(51,806)(727)506 
NGL contracts(9,051)— — 
Total derivative cash settlement gain (loss)(1)
(275,914)49,406 1,691 
Change in fair value gain (loss)215,404 4,056 (38,836)
Total derivative gain (loss)(1)
$(60,510)$53,462 $(37,145)
___________________________
(1)Total derivative gain (loss) and total derivative cash settlement gain (loss) for each of the periods presented above is reported in the derivative (gain) loss line item and derivative cash settlements gain (loss) line item in the accompanying statements of cash flows, within the cash flows from operating activities.