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Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis The following fair value hierarchy table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2021 and December 31, 2020:
December 31, 2021
  
Quoted Prices in
Active Markets
For Identical
Assets (Level 1)
 
  
Significant
Other
Observable
Inputs (Level 2)
 
  
Significant
Unobservable
Inputs (Level 3)
 
  
Balance at
December 31,
2021
 
(Thousands of dollars)
  
 
 
  
 
 
  
 
 
  
 
 
Assets
  
  
  
  
Commodity derivative contracts
  
$
—
 
  
$
—
 
  
$
—
 
  
$
—
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total assets
  
$
—
 
  
$
—
 
  
$
—
 
  
$
—
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Liabilities
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Commodity derivative contracts
  
$
—
 
  
$
—
 
  
$
(5,585
) 
  
$
(5,585
) 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total liabilities
  
$
—
 
  
$
—
 
  
$
(5,585
) 
  
$
(5,585
) 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
December 31, 2020
  
Quoted Prices in
Active Markets
For Identical
Assets (Level 1)
 
  
Significant
Other
Observable
Inputs (Level 2)
 
  
Significant
Unobservable
Inputs (Level 3)
 
  
Balance at
December 31,
2020
 
(Thousands of dollars)
  
  
  
  
Assets
  
  
  
  
Commodity derivative contracts
    $ —      $ —      $ 97
 
  
$
 97
 
    
 
 
     
 
 
     
 
 
     
 
 
  
Total assets
    $ —      $ —      $ 97
 
  
$
 97
 
    
 
 
     
 
 
     
 
 
     
 
 
  
Liabilities
                                    
Commodity derivative contract
    $ —      $ —      $ (768
) 
  
$
 (768
) 
    
 
 
     
 
 
     
 
 
     
 
 
  
To
tal liabilities
    $ —      $ —      $ (768
) 
  
$
 (768
) 
    
 
 
     
 
 
     
 
 
     
 
 
  
Schedule of Changes in Fair Value of Financial Assets and Liabilities Classified as Level 3 The following table sets forth a reconciliation of changes in the fair value of financial assets and liabilities classified as Level 3 in the fair value hierarchy for the year ended December 2021.
(Thousands of dollars)
  
 
 
Net Liabilities – December 31, 2020
    $ (671 ) 
Total realized and unrealized gains (losses):
         
Included in earnings (a)
      (9,959 ) 
Purchases, sales, issuances and settlements
      5,045  
    
 
 
  
Net Liabilities — December 31, 2021
    $ (5,585 ) 
    
 
 
  
 
(a)
Derivative instruments are reported in revenues as realized gain/loss and on a separately reported line item captioned unrealized gain/loss on derivative instruments.
Effect of Derivative Instruments on Consolidated Balance Sheets
The following table sets forth the effect of derivative instruments on the consolidated balance sheets at December 31, 2021 and 2020:
 
 
  
 
  
Fair Value
 
(Thousands of dollars)
  
Balance Sheet Location
  
December 31,
2021
 
  
December 31,
2020
 
Asset Derivatives:
  
  
  
      
  
      
Derivatives not designated as cash-flow hedging instruments:
  
  
  
      
  
      
Natural gas commodity contracts
    Derivative asset long-term and
 
other assets
  
$
 —  
 
  
$
 97  
      
  
 
 
 
  
 
 
  
Total
     
  
$
 —  
 
  
$
 97  
      
  
 
 
 
  
 
 
  
Liability Derivatives:
     
  
      
  
      
Derivatives not designated as cash-flow hedging instruments:
     
  
      
  
      
Crude oil commodity contracts
    Derivative liability short-term
  
$
 (3,992
) 
  
$
 (428 ) 
Natural gas commodity contracts
    Derivative liability short-term
  
 
 (943
) 
  
 
 (296 ) 
Crude oil commodity contracts
    Derivative liability long-term
  
 
 (490
) 
  
 
 —    
Natural gas commodity contracts
    Derivative liability long-term
  
 
 (160
) 
  
 
 (44 ) 
      
  
 
 
 
  
 
 
  
Total
     
  
$
 (5,585
) 
  
$
 (768 ) 
      
  
 
 
 
  
 
 
  
Total derivative instruments
     
  
$
 (5,585
) 
  
$
 (671 ) 
Effect of Derivative Instruments on Consolidated Statements of Operations
The following table sets forth the effect of derivative instruments on the consolidated statements of operations for the years ended December 31, 2021 and 2020:
 
(Thousands of dollars)
  
Location of gain/loss recognized in income
  
Amount of gain/loss
recognized in income
 
  
2021
 
 
2020
 
Derivatives not designated as cash-flow hedge instruments:
  
  
  
      
 
      
Natural gas commodity contracts
    Unrealized (loss) gain on derivative instruments, net      (859 )      (351 )  
Crude oil commodity contracts
    Unrealized (loss) gain on derivative instruments, net      (4,055 )      161  
Natural gas commodity contracts
    Realized (loss) on derivative instruments, net      (1,833 )      476  
Crude oil commodity contracts
    Realized (loss) gain on derivative instruments, net      (3,212 )      5,697  
         
 
 
    
 
 
  
          $ (9,959 )    $ 5,983