XML 25 R13.htm IDEA: XBRL DOCUMENT
v3.21.1

Derivative Financial Instruments | 12 Months Ended
--- | ---
Dec. 31, 2020
Derivative Financial Instruments |
7. Derivative Financial Instruments | The Company uses derivative financial instruments to manage its exposure to commodity price fluctuations. Commodity derivative instruments are used to reduce the effect of volatility of price changes on the oil and gas the Company produces and sells. The Company’s derivative financial instruments consist of oil and natural gas swaps. The Company does not enter into derivative financial instruments for speculative or trading purposes. The Company does not designate its derivative instruments to qualify for hedge accounting. Accordingly, the Company reflects changes in the fair value of its derivative instruments in its consolidated statements of operations as they occur. Unrealized gains and losses related to the swap contracts are recognized and recorded as an asset or liability on the Company’s balance sheet. The following table summarized the amounts reported in earnings, as a component of revenue, related to the commodity derivative instruments for the years ended December 31, 2020 and 2019:
|  | As of December 31, |
|  | 2020 |  |  | 2019 |
Gain on derivatives: |  |  |  |  |  |  |  |
Oil derivatives |  | $ | 1,738,871 |  |  | $ | 25,894 |
Natural gas derivatives |  |  | — |  |  |  | 7,749 |
Total |  | $ | 1,738,871 |  |  | $ | 33,643 |
The following represents the Company’s net cash receipts from (payments on) derivatives for the years ended December 31, 2020 and 2019:
|  | As of December 31, |
|  | 2020 |  |  | 2019 |
Net cash receipts from derivatives: |  |  |  |  |  |  |  |
Oil derivatives |  | $ | 1,520,988 |  |  | $ | 358,799 |
Natural gas derivatives |  |  | — |  |  |  | 11,557 |
Total |  | $ | 1,520,988 |  |  | $ | 370,356 |
The following table sets forth the Company’s outstanding oil derivative contracts at December 31, 2020. The Company has no outstanding natural gas derivatives. All of the Company’s derivatives are expected to settle by July 30, 2021:
| First quarter | Second quarter | Third quarter | Fourth quarter
Oil Swaps: |  |  |  |
Volume (Bbl) | 15,255 | 15,180 | 5,200 | —
Price per Bbl | $49.40 | $50.87 | $38.25 | —

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 financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures. + References No definition available. + Details
Name: | us-gaap_FinancialInstrumentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration