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DERIVATIVE AND HEDGING ACTIVITIES (Tables) | 9 Months Ended
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Sep. 30, 2018
DERIVATIVE AND HEDGING ACTIVITIES |
Summary of location and fair value of derivative contracts | The following table summarizes the location and fair value amounts of all derivative contracts in the unaudited condensed consolidated balance sheets (in thousands):
|  |  |  | Asset derivative contracts |  |  |  | Liability derivative contracts
|  |  |  | September 30, |  | December 31, |  |  |  | September 30, |  | December 31,
Derivatives not designated as hedging contracts under ASC 815 |  | Balance sheet location |  | 2018(1) |  | 2017 |  | Balance sheet location |  | 2018(2) |  | 2017
Commodity contracts |  | Current assets - receivables from derivative contracts |  | $ | 16,553 |  | $ | 677 |  | Current liabilities - liabilities from derivative contracts |  | $ | (86,176) |  | $ | (19,248)
Commodity contracts |  | Other noncurrent assets -receivables from derivative contracts |  |  | 2,794 |  |  | — |  | Other noncurrent liabilities - liabilities from derivative contracts |  |  | (37,459) |  |  | (7,751)
Total derivatives not designated as hedging contracts under ASC 815 |  |  |  | $ | 19,347 |  | $ | 677 |  |  |  | $ | (123,635) |  | $ | (26,999)
| (1) |  | Amount includes a $0.7 million deferred premium asset classified all as current as of September 30, 2018.
| (2) |  | Amount includes a $4.7 million deferred premium obligation of which $0.3 million was classified as current as of September 30, 2018.
Summary of the location and amounts of the Company's realized and unrealized gains and losses on derivative contracts | The following table summarizes the location and amounts of the Company’s realized and unrealized gains and losses on derivative contracts in the Company’s unaudited condensed consolidated statements of operations (in thousands):
|  |  |  | Amount of gain |  | Amount of gain
|  |  |  | or (loss) |  | or (loss)
|  |  |  | recognized in |  | recognized in
|  |  |  | income on |  | income on
|  |  |  | derivative |  | derivative
|  |  |  | contracts for the |  | contracts for the
|  |  |  | Three Months |  | Nine Months
|  |  |  | Ended |  | Ended
|  | Location of gain or (loss) recognized in |  | September 30, |  | September 30,
Derivatives not designated as hedging contracts under ASC 815 |  | income on derivative contracts |  | 2018 |  | 2017 |  | 2018 |  | 2017
Commodity contracts: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unrealized gain (loss) on commodity contracts |  | Other income (expenses) - net gain (loss) on derivative contracts |  | $ | (50,763) |  | $ | (31,209) |  | $ | (77,524) |  | $ | 11,010
Realized gain (loss) on commodity contracts |  | Other income (expenses) - net gain (loss) on derivative contracts |  |  | (9,643) |  |  | 8,794 |  |  | 10,921 |  |  | 17,129
Total net gain (loss) on derivative contracts |  |  |  | $ | (60,406) |  | $ | (22,415) |  | $ | (66,603) |  | $ | 28,139
Schedule of open derivative contracts |
|  |  |  |  |  | September 30, 2018
|  |  |  |  |  |  |  | Floors |  | Ceilings |  | Basis Differential
|  |  |  |  |  | Volume in |  |  |  |  |  |  | Weighted |  |  |  | Weighted |  |  |  |  |  |  |  | Weighted
|  |  |  |  |  | Mmbtu’s/ |  | Price / |  | Average |  | Price / |  | Average |  | Price / |  | Average
Period |  | Instrument |  | Commodity |  | Bbl’s |  | Price Range |  | Price |  | Price Range |  | Price |  | Price Range |  | Price
October 2018 - December 2018 |  | Basis Swap |  | Crude Oil |  | 1,012,000 |  | $ | — |  | — |  | $ | — |  | $ | — |  | — |  | $ | — |  | $ | (6.90) | - | $ | (12.50) |  | $ | (10.64)
October 2018 - December 2018 |  | Basis Swap |  | Natural Gas |  | 1,380,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1.05) | - |  | (1.19) |  |  | (1.10)
October 2018 - December 2018 |  | Collars |  | Crude Oil |  | 1,196,000 |  |  | 45.00 | - | 55.80 |  |  | 50.08 |  |  | 50.00 | - | 63.00 |  |  | 56.87 |  |  |  |  |  |  |  |  |
October 2018 - December 2018 |  | Collars |  | Natural Gas |  | 690,000 |  |  | 3.00 | - | 3.03 |  |  | 3.01 |  |  | 3.22 | - | 3.38 |  |  | 3.30 |  |  |  |  |  |  |  |  |
October 2018 - December 2018 |  | Calls |  | Crude Oil |  | 1,196,000 |  |  |  |  |  |  |  |  |  |  | 59.00 | - | 63.00 |  |  | 59.92 |  |  |  |  |  |  |  |  |
October 2018 - December 2018 |  | Calls |  | Crude Oil |  | (1,196,000) |  |  |  |  |  |  |  |  |  |  | 50.00 | - | 63.00 |  |  | 56.87 |  |  |  |  |  |  |  |  |
October 2018 - December 2018 |  | Swap |  | Natural Gas Liquids |  | 92,000 |  |  |  |  | 32.50 |  |  | 32.50 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
October 2018 - December 2018 |  | WTI NYMEX Roll |  | Crude Oil |  | 460,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 0.35 |  |  | 0.35
January 2019 - March 2019 |  | Collars |  | Crude Oil |  | 90,000 |  |  |  |  | 46.75 |  |  | 46.75 |  |  |  |  | 51.75 |  |  | 51.75 |  |  |  |  |  |  |  |  |
January 2019 - June 2019 |  | Basis Swap |  | Crude Oil |  | 543,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1.15) | - |  | (1.33) |  |  | (1.22)
January 2019 - September 2019 |  | Basis Swap |  | Crude Oil |  | 546,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (6.20) | - |  | (7.60) |  |  | (6.90)
January 2019 - December 2019 |  | Basis Swap |  | Crude Oil |  | 2,365,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (0.98) | - |  | (6.50) |  |  | (3.73)
January 2019 - December 2019 |  | Basis Swap |  | Natural Gas |  | 9,307,500 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1.05) | - |  | (1.40) |  |  | (1.18)
January 2019 - December 2019 |  | Collars |  | Crude Oil |  | 5,110,000 |  |  | 50.00 | - | 58.00 |  |  | 53.12 |  |  | 55.00 | - | 63.00 |  |  | 58.98 |  |  |  |  |  |  |  |  |
January 2019 - December 2019 |  | Collars |  | Natural Gas |  | 8,395,000 |  |  | 2.52 | - | 2.65 |  |  | 2.60 |  |  | 3.00 | - | 3.03 |  |  | 3.01 |  |  |  |  |  |  |  |  |
January 2019 - December 2019 |  | Swap |  | Natural Gas Liquids |  | 1,460,000 |  |  | 29.08 | - | 30.15 |  |  | 29.33 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
January 2019 - December 2019 |  | WTI NYMEX Roll |  | Crude Oil |  | 1,825,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 0.35 |  |  | 0.35
April 2019 - December 2019 |  | Collars |  | Crude Oil |  | 275,000 |  |  |  |  | 55.00 |  |  | 55.00 |  |  |  |  | 62.85 |  |  | 62.85 |  |  |  |  |  |  |  |  |
July 2019 - December 2019 |  | Collars |  | Crude Oil |  | 184,000 |  |  |  |  | 55.00 |  |  | 55.00 |  |  |  |  | 69.00 |  |  | 69.00 |  |  |  |  |  |  |  |  |
October 2019 - December 2019 |  | Basis Swap |  | Crude Oil |  | 368,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 3.45 | - |  | 3.75 |  |  | 3.65
October 2019 - December 2019 |  | Swap |  | Natural Gas Liquids |  | 92,000 |  |  |  |  | 32.50 |  |  | 32.50 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
January 2020 - December 2020 |  | Basis Swap |  | Crude Oil |  | 2,928,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2.00 | - |  | 3.75 |  |  | 2.82
January 2020 - December 2020 |  | Collars |  | Crude Oil |  | 549,000 |  |  |  |  | 50.00 |  |  | 50.00 |  |  |  |  | 70.00 |  |  | 70.00 |  |  |  |  |  |  |  |  |
January 2020 - December 2020 |  | Calls |  | Crude Oil |  | 1,464,000 |  |  |  |  |  |  |  |  |  |  |  |  | 70.00 |  |  | 70.00 |  |  |  |  |  |  |  |  |
January 2020 - December 2020 |  | Puts |  | Crude Oil |  | 915,000 |  |  |  |  | 55.00 |  |  | 55.00 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
January 2020 - December 2020 |  | Swap |  | Natural Gas Liquids |  | 732,000 |  |  |  |  | 31.00 |  |  | 31.00 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  | December 31, 2017
|  |  |  |  |  |  |  | Floors |  | Ceilings |  | Basis Differential
|  |  |  |  |  | Volume in |  |  |  | Weighted |  |  |  | Weighted |  |  |  | Weighted
|  |  |  |  |  | Mmbtu’s/ |  | Price / |  | Average |  | Price / |  | Average |  | Price / |  | Average
Period |  | Instrument |  | Commodity |  | Bbl’s |  | Price Range |  | Price |  | Price Range |  | Price |  | Price Range |  | Price
January 2018 - December 2018 |  | Basis Swap |  | Crude Oil |  | 2,555,000 |  | $ |  |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | (1.05) | - | $ | (1.50) |  | $ | (1.29)
January 2018 - December 2018 |  | Collars |  | Crude Oil |  | 2,920,000 |  |  | 45.00 | - |  | 53.00 |  |  | 49.29 |  |  | 50.00 | - |  | 60.00 |  |  | 56.82 |  |  |  |  |  |  |  |  |
January 2018 - December 2018 |  | Collars |  | Natural Gas |  | 2,737,500 |  |  | 3.00 | - |  | 3.03 |  |  | 3.01 |  |  | 3.22 | - |  | 3.38 |  |  | 3.30 |  |  |  |  |  |  |  |  |
April 2018 - December 2018 |  | Basis Swap |  | Crude Oil |  | 275,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1.15) |  |  | (1.15)
April 2018 - December 2018 |  | Collars |  | Crude Oil |  | 275,000 |  |  |  |  |  | 46.75 |  |  | 46.75 |  |  |  |  |  | 51.75 |  |  | 51.75 |  |  |  |  |  |  |  |  |
July 2018 - December 2018 |  | Basis Swap |  | Crude Oil |  | 1,012,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (0.98) | - |  | (1.18) |  |  | (1.12)
July 2018 - December 2018 |  | Collars |  | Crude Oil |  | 184,000 |  |  |  |  |  | 48.50 |  |  | 48.50 |  |  |  |  |  | 53.50 |  |  | 53.50 |  |  |  |  |  |  |  |  |
October 2018 - December 2018 |  | Collars |  | Crude Oil |  | 92,000 |  |  |  |  |  | 50.65 |  |  | 50.65 |  |  |  |  |  | 55.65 |  |  | 55.65 |  |  |  |  |  |  |  |  |
January 2019 - March 2019 |  | Collars |  | Crude Oil |  | 90,000 |  |  |  |  |  | 46.75 |  |  | 46.75 |  |  |  |  |  | 51.75 |  |  | 51.75 |  |  |  |  |  |  |  |  |
January 2019 - December 2019 |  | Basis Swap |  | Crude Oil |  | 4,380,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (0.50) | - |  | (1.33) |  |  | (1.02)
January 2019 - December 2019 |  | Collars |  | Crude Oil |  | 1,825,000 |  |  | 50.00 | - |  | 51.00 |  |  | 50.24 |  |  | 55.00 | - |  | 57.30 |  |  | 55.70 |  |  |  |  |  |  |  |  |
Schedule of potential effects of master netting arrangements on the fair value of derivative contracts | The following table shows the potential effects of master netting arrangements on the fair value of the Company’s derivative contracts (in thousands):
|  | Derivative Assets |  | Derivative Liabilities
Offsetting of Derivative Assets and Liabilities |  | September 30, 2018 |  | December 31, 2017 |  | September 30, 2018 |  | December 31, 2017
Gross Amounts Presented in the Consolidated Balance Sheet |  | $ | 19,347 |  | $ | 677 |  | $ | (123,635) |  | $ | (26,999)
Amounts Not Offset in the Consolidated Balance Sheet |  |  | (18,040) |  |  | (231) |  |  | 18,040 |  |  | 231
Net Amount |  | $ | 1,307 |  | $ | 446 |  | $ | (105,595) |  | $ | (26,768)

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