XML 22 R12.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Derivative Instruments | 3 Months Ended
--- | ---
Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments | Derivative Instruments Oil and Natural Gas Contracts The Company uses commodity based derivative contracts to reduce exposure to fluctuations in oil and natural gas prices. While the use of these contracts limits the downside risk for adverse price changes, their use may also limit future revenues from favorable price changes. For the three months ended December 31, 2021 and 2020, we have not designated our derivative contracts as hedges for accounting purposes, and therefore changes in the fair value of derivatives are included and recognized in other income (expenses) in the condensed consolidated statement of operations. As of December 31, 2021, the Company's oil and natural gas derivative instruments consisted of fixed price swaps, costless collars, and basis protection swaps. The following table summarizes the open financial derivative positions as of December 31, 2021, related to oil and natural gas production:
|  |  |  | Weighted Average Price
Calendar Quarter |  | Notional Volume |  | Fixed |  | Put |  | Call
|  |  |  | ($ per unit)
Oil Swaps (Bbl) |  |  |  |  |  |  |  |
Q1 2022 |  | 345,000 |  |  | $ | 57.47 |  |  | $ | — |  |  | $ | — |
Q2 2022 |  | 345,000 |  |  | $ | 57.47 |  |  | $ | — |  |  | $ | — |
Q3 2022 |  | 270,000 |  |  | $ | 56.03 |  |  | $ | — |  |  | $ | — |
Q4 2022 |  | 270,000 |  |  | $ | 56.03 |  |  | $ | — |  |  | $ | — |
2023 |  | 720,000 |  |  | $ | 53.27 |  |  | $ | — |  |  | $ | — |
Natural Gas Swaps (Mcf) |  |  |  |  |  |  |  |
Q1 2022 |  | 360,000 |  |  | $ | 3.26 |  |  | $ | — |  |  | $ | — |
Q2 2022 |  | 540,000 |  |  | $ | 3.26 |  |  | $ | — |  |  | $ | — |
Q3 2022 |  | 540,000 |  |  | $ | 3.26 |  |  | $ | — |  |  | $ | — |
Q4 2022 |  | 540,000 |  |  | $ | 3.26 |  |  | $ | — |  |  | $ | — |
Oil Collars (Bbl) |  |  |  |  |  |  |  |
Q1 2022 |  | 90,000 |  |  | $ | — |  |  | $ | 35.00 |  |  | $ | 42.63 |
Q2 2022 |  | 90,000 |  |  | $ | — |  |  | $ | 35.00 |  |  | $ | 42.63 |
Q3 2022 |  | 90,000 |  |  | $ | — |  |  | $ | 35.00 |  |  | $ | 42.63 |
Q4 2022 |  | 90,000 |  |  | $ | — |  |  | $ | 35.00 |  |  | $ | 42.63 |
Oil Basis (Bbl) |  |  |  |  |  |  |  |
Q1 2022 |  | 240,000 |  |  | $ | 0.41 |  |  | $ | — |  |  | $ | — |
Q2 2022 |  | 240,000 |  |  | $ | 0.41 |  |  | $ | — |  |  | $ | — |
Q3 2022 |  | 240,000 |  |  | $ | 0.41 |  |  | $ | — |  |  | $ | — |
Q4 2022 |  | 240,000 |  |  | $ | 0.41 |  |  | $ | — |  |  | $ | — |
Interest Rate Contracts The Company has entered into floating-to-fixed interest rate swaps (we receive a floating market rate equal to one-month LIBOR and pay a fixed interest rate) to manage interest rate exposure related to the Company's revolving credit facility. The following table summarizes the open interest rate derivative positions as of December 31, 2021:
Open Coverage Period |  | Notional Amount |  | Fixed Rate
|  | (In thousands) |  |
Floating-to-Fixed Interest Rate Swaps |  |  |  |
January 2022 - September 2023 |  | $ | 40,000 |  |  | 0.24 | %
Balance Sheet Presentation of Derivatives The following table presents the location and fair value of the Company’s derivative contracts included in the condensed consolidated balance sheets as of December 31, 2021 and September 30, 2021:
|  | December 31, 2021
Balance Sheet Classification |  | Gross Fair Value |  | Amounts Netted |  | Net Fair Value
|  | (In thousands)
Current derivative assets |  | $ | 281 |  |  | $ | (198) |  |  | $ | 83 |
Non-current derivative assets |  | 267 |  |  | — |  |  | 267 |
Current derivative liabilities |  | (31,182) |  |  | 198 |  |  | (30,984) |
Non-current derivative liabilities |  | (9,515) |  |  | — |  |  | (9,515) |
Total |  | $ | (40,149) |  |  | $ | — |  |  | $ | (40,149) |
|  | September 30, 2021
Balance Sheet Classification |  | Gross Fair Value |  | Amounts Netted |  | Net Fair Value
|  | (In thousands)
Current derivative assets |  | $ | 186 |  |  | $ | (186) |  |  | $ | — |
Non-current derivative assets |  | 228 |  |  | (122) |  |  | 106 |
Current derivative liabilities |  | (42,330) |  |  | 186 |  |  | (42,144) |
Non-current derivative liabilities |  | (9,054) |  |  | 122 |  |  | (8,932) |
Total |  | $ | (50,970) |  |  | $ | — |  |  | $ | (50,970) |
The following table presents the Company's derivative activities for the three months ended December 31, 2021 and 2020:
| Three Months Ended December 31,
| 2021 |  | 2020
| (In thousands)
Fair value of net asset (liability), beginning of period | $ | (50,970) |  |  | $ | 21,921 |
Loss on derivatives | (5,193) |  |  | (13,909) |
Settlements on derivatives | 16,014 |  |  | (5,173) |
Fair value of net asset (liability), end of period | $ | (40,149) |  |  | $ | 2,839 |

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 5 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123477628&loc=d3e90205-114008 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration