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Derivatives | 3 Months Ended
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Mar. 31, 2018
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 as gain or loss 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 March 31, 2018, 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 $18.3 million and $(34.2) million for the three-month periods ended March 31, 2018, and 2017, respectively, which include net cash payments upon settlement of $6.1 million and $0.6 million, respectively. 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 unaudited condensed 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 March 31, 2018, the counterparties to the Company’s open commodity derivative contracts consisted of five 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 March 31, 2018, and December 31, 2017 (in thousands): March 31, 2018
|  | Gross Amounts |  | Gross Amounts Offset |  | Amounts Net of Offset |  | Financial Collateral |  | Net Amount
Assets |  |  |  |  |  |  |  |  |  |
Derivative contracts - current |  | $ | 3,040 |  |  | $ | (3,040 | ) |  | $ | — |  |  | $ | — |  |  | $ | — |
Derivative contracts - noncurrent |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | $ | 3,040 |  |  | $ | (3,040 | ) |  | $ | — |  |  | $ | — |  |  | $ | — |
Liabilities |  |  |  |  |  |  |  |  |  |
Derivative contracts - current |  | $ | 22,992 |  |  | $ | (3,040 | ) |  | $ | 19,952 |  |  | $ | (19,952 | ) |  | $ | — |
Derivative contracts - noncurrent |  | 5,143 |  |  | — |  |  | 5,143 |  |  | (5,143 | ) |  | — |
Total |  | $ | 28,135 |  |  | $ | (3,040 | ) |  | $ | 25,095 |  |  | $ | (25,095 | ) |  | $ | — |
December 31, 2017
|  | Gross Amounts |  | Gross Amounts Offset |  | Amounts Net of Offset |  | Financial Collateral |  | Net Amount
Assets |  |  |  |  |  |  |  |  |  |
Derivative contracts - current |  | $ | 5,582 |  |  | $ | (4,272 | ) |  | $ | 1,310 |  |  | $ | — |  |  | $ | 1,310 |
Derivative contracts - noncurrent |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | $ | 5,582 |  |  | $ | (4,272 | ) |  | $ | 1,310 |  |  | $ | — |  |  | $ | 1,310 |
Liabilities |  |  |  |  |  |  |  |  |  |
Derivative contracts - current |  | $ | 14,899 |  |  | $ | (4,272 | ) |  | $ | 10,627 |  |  | $ | (10,627 | ) |  | $ | — |
Derivative contracts - noncurrent |  | 3,568 |  |  | — |  |  | 3,568 |  |  | (3,568 | ) |  | — |
Total |  | $ | 18,467 |  |  | $ | (4,272 | ) |  | $ | 14,195 |  |  | $ | (14,195 | ) |  | $ | — |
At March 31, 2018, the Company’s open commodity derivative contracts consisted of the following: Oil Price Swaps
| Notional (MBbls) |  | Weighted Average Fixed Price
April 2018 - December 2018 | 2,749 |  |  | $ | 55.87 |
January 2019 - December 2019 | 1,825 |  |  | $ | 54.29 |
Natural Gas Price Swaps
| Notional (MMcf) |  | Weighted Average Fixed Price
April 2018 - December 2018 | 11,000 |  |  | $ | 3.11 |
Fair Value of Derivatives The following table presents the fair value of the Company’s derivative contracts as of March 31, 2018, and December 31, 2017, on a gross basis without regard to same-counterparty netting (in thousands):
Type of Contract |  | Balance Sheet Classification |  | March 31, 2018 |  | December 31, 2017
Derivative assets |  |  |  |  |  |
Natural gas price swaps |  | Derivative contracts-current |  | $ | 3,040 |  |  | $ | 5,582 |
Derivative liabilities |  |  |  |  |  |
Oil price swaps |  | Derivative contracts-current |  | (22,992 | ) |  | (14,899 | )
Oil price swaps |  | Derivative contracts-noncurrent |  | (5,143 | ) |  | (3,568 | )
Total net derivative contracts |  | $ | (25,095 | ) |  | $ | (12,885 | )
See Note 5 for additional discussion of the fair value measurement of the Company’s derivative contracts.

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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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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