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Derivatives
 9 Months Ended
Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives Derivatives
    
Commodity Derivatives 

The Company is exposed to commodity price risk, which impacts the predictability of its cash flows from the sale of oil and natural gas. The Company seeks to manage this risk through the use of commodity derivative contracts, which allow the Company to limit its exposure to commodity price volatility on a portion of its forecasted oil and natural gas sales. The Company has not designated any of its derivative contracts as hedges for accounting purposes and records all derivative contracts at fair value with changes in derivative contract fair values recognized in loss (gain) on derivative contracts in the unaudited condensed consolidated statements of operations. None of the Company’s commodity derivative contracts may be terminated prior to contractual maturity solely as a result of a downgrade in the credit rating of a party to the contract. Commodity derivative contracts are settled on a monthly basis. On a quarterly basis, the commodity derivative contract valuations are adjusted to the mark-to-market valuation. At September 30, 2017, the Company’s commodity derivative contracts consisted of fixed price swaps under which the Company receives a fixed price for the contract and pays a floating market price to the counterparty over a specified period for a contracted volume.

The Company recorded loss (gain) on commodity derivative contracts of $11.7 million and $(0.3) million for the three-month periods ended September 30, 2017, and 2016, respectively, which include net cash receipts upon settlement of $5.0 million and $14.6 million, respectively. The Company recorded (gain) loss on commodity derivative contracts of $(46.0) million and $4.8 million for the nine-month periods ended September 30, 2017, and 2016, respectively, which include net cash receipts upon settlement of $7.7 million and $72.6 million, respectively. Included in the net cash receipts for the nine-month period ended September 30, 2016, is $17.9 million of cash receipts related to certain commodity derivative contracts settled prior to their contractual maturities (“early settlements”).

Master Netting Agreements and the Right of Offset. The Company has master netting agreements with all of its commodity derivative counterparties and has presented its derivative assets and liabilities with the same counterparty on a net basis in the consolidated balance sheets. As a result of the netting provisions, the Company's maximum amount of loss under commodity derivative transactions due to credit risk is limited to the net amounts due from its counterparties. As of September 30, 2017, the counterparties to the Company’s open commodity derivative contracts consisted of seven financial institutions, all of which are also lenders under the Company’s Credit Facility. The Company is not required to post additional collateral under its commodity derivative contracts as all of the counterparties to the Company’s commodity derivative contracts share in the collateral supporting the Company’s Credit Facility.

The following tables summarize (i) the Company's commodity derivative contracts on a gross basis, (ii) the effects of netting assets and liabilities for which the right of offset exists based on master netting arrangements and (iii) for the Company’s net derivative liability positions, the applicable portion of shared collateral under the Credit Facility as of September 30, 2017, and the First Lien Exit Facility as of December 31, 2016 (in thousands):

September 30, 2017
 
 
Gross Amounts
 
Gross Amounts Offset
 
Amounts Net of Offset
 
Financial Collateral
 
Net Amount
Assets
 
 
 
 
 
 
 
 
 
 
Derivative contracts - current
 
$
7,632

 
$
(1,024
)
 
$
6,608

 
$
—

 
$
6,608

Derivative contracts - noncurrent
 
2,009

 
1

 
2,010

 
—

 
2,010

Total
 
$
9,641

 
$
(1,023
)
 
$
8,618

 
$
—

 
$
8,618

Liabilities
 
 
 
 
 
 
 
 
 
 
Derivative contracts - current
 
$
1,031

 
$
(1,023
)
 
$
8

 
$
(8
)
 
$
—

Total
 
$
1,031

 
$
(1,023
)
 
$
8

 
$
(8
)
 
$
—


December 31, 2016
 
 
Gross Amounts
 
Gross Amounts Offset
 
Amounts Net of Offset
 
Financial Collateral
 
Net Amount
Liabilities
 
 
 
 
 
 
 
 
 
 
Derivative contracts - current
 
$
27,538

 
$
—

 
$
27,538

 
$
(27,538
)
 
$
—

Derivative contracts - noncurrent
 
2,176

 
—

 
2,176

 
(2,176
)
 
—

Total
 
$
29,714

 
$
—

 
$
29,714

 
$
(29,714
)
 
$
—



At September 30, 2017, the Company’s open commodity derivative contracts consisted of the following:

Oil Price Swaps 
 
Notional (MBbls)
 
Weighted Average
Fixed Price
October 2017 - December 2017
828

 
$
52.24

January 2018 - December 2018
2,006

 
$
54.87

Natural Gas Price Swaps
 
Notional (MMcf)
 
Weighted Average
Fixed Price
October 2017 - December 2017
8,280

 
$
3.20

January 2018 - December 2018
17,300

 
$
3.16



Fair Value of Derivatives 

The following table presents the fair value of the Company’s derivative contracts as of September 30, 2017, and December 31, 2016, on a gross basis without regard to same-counterparty netting (in thousands):
Type of Contract
 
Balance Sheet Classification
 
September 30,
2017
 
December 31,
2016
Derivative assets
 
 
 
 
 
 
Oil price swaps
 
Derivative contracts-current
 
$
5,417

 
$
—

Natural gas price swaps
 
Derivative contracts-current
 
2,214

 
—

Oil price swaps
 
Derivative contracts-noncurrent
 
1,739

 
—

Natural gas price swaps
 
Derivative contracts-noncurrent
 
271

 
—

Derivative liabilities
 
 
 
 
 
 
Oil price swaps
 
Derivative contracts-current
 
(1,031
)
 
(13,395
)
Natural gas price swaps
 
Derivative contracts-current
 
—

 
(14,143
)
Oil price swaps
 
Derivative contracts-noncurrent
 
—

 
(2,105
)
Natural gas price swaps
 
Derivative contracts-noncurrent
 
—

 
(71
)
Total net derivative contracts
 
$
8,610

 
$
(29,714
)


See Note 4 for additional discussion of the fair value measurement of the Company’s derivative contracts.