Derivative Instruments and Hedging Activities (Tables)
|
6 Months Ended |
Jun. 30, 2023 |
|---|
| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
|
| Schedule of Offsetting Assets |
The following presents the impact of this presentation to the Company’s recognized assets and liabilities for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30, 2023 |
|
Presented without |
|
|
|
As Presented with |
|
Effects of Netting |
|
Effects of Netting |
|
Effects of Netting |
|
(In thousands) |
| Derivative Assets |
|
|
|
|
|
| Fair value of derivatives - current |
$20,387 |
|
|
($5,427) |
|
|
$14,960 |
|
| Other assets, net |
$— |
|
|
$— |
|
|
$— |
|
|
|
|
|
|
|
| Derivative Liabilities |
|
|
|
|
|
| Fair value of derivatives - current |
($6,933) |
|
|
$5,427 |
|
|
($1,506) |
|
| Fair value of derivatives - non-current |
($1,941) |
|
|
$— |
|
|
($1,941) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2022 |
|
Presented without |
|
|
|
As Presented with |
|
Effects of Netting |
|
Effects of Netting |
|
Effects of Netting |
|
(In thousands) |
| Derivative Assets |
|
|
|
|
|
| Fair value of derivatives - current |
$51,984 |
|
|
($30,652) |
|
|
$21,332 |
|
| Other assets, net |
$1,343 |
|
|
($889) |
|
|
$454 |
|
|
|
|
|
|
|
| Derivative Liabilities |
|
|
|
|
|
| Fair value of derivatives - current |
($46,849) |
|
|
$30,652 |
|
|
($16,197) |
|
| Fair value of derivatives - non-current |
($14,304) |
|
|
$889 |
|
|
($13,415) |
|
|
|
|
|
|
|
|
| Schedule of Offsetting Liabilities |
The following presents the impact of this presentation to the Company’s recognized assets and liabilities for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30, 2023 |
|
Presented without |
|
|
|
As Presented with |
|
Effects of Netting |
|
Effects of Netting |
|
Effects of Netting |
|
(In thousands) |
| Derivative Assets |
|
|
|
|
|
| Fair value of derivatives - current |
$20,387 |
|
|
($5,427) |
|
|
$14,960 |
|
| Other assets, net |
$— |
|
|
$— |
|
|
$— |
|
|
|
|
|
|
|
| Derivative Liabilities |
|
|
|
|
|
| Fair value of derivatives - current |
($6,933) |
|
|
$5,427 |
|
|
($1,506) |
|
| Fair value of derivatives - non-current |
($1,941) |
|
|
$— |
|
|
($1,941) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2022 |
|
Presented without |
|
|
|
As Presented with |
|
Effects of Netting |
|
Effects of Netting |
|
Effects of Netting |
|
(In thousands) |
| Derivative Assets |
|
|
|
|
|
| Fair value of derivatives - current |
$51,984 |
|
|
($30,652) |
|
|
$21,332 |
|
| Other assets, net |
$1,343 |
|
|
($889) |
|
|
$454 |
|
|
|
|
|
|
|
| Derivative Liabilities |
|
|
|
|
|
| Fair value of derivatives - current |
($46,849) |
|
|
$30,652 |
|
|
($16,197) |
|
| Fair value of derivatives - non-current |
($14,304) |
|
|
$889 |
|
|
($13,415) |
|
|
|
|
|
|
|
|
| Schedule of Gain or Loss on Derivative Contracts |
The components of “(Gain) loss on derivative contracts” are as follows for the respective periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
(In thousands) |
| (Gain) loss on oil derivatives |
($12,937) |
|
|
$75,910 |
|
|
($36,281) |
|
|
$401,258 |
|
| Loss on natural gas derivatives |
6,996 |
|
|
5,738 |
|
|
4,695 |
|
|
33,919 |
|
| Loss on NGL derivatives |
— |
|
|
— |
|
|
— |
|
|
4,771 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Gain) loss on derivative contracts |
($5,941) |
|
|
$81,648
|
|
|
($31,586) |
|
|
$439,948
|
|
|
| Schedule of Derivative Instruments |
The components of “Cash received (paid) for commodity derivative settlements, net” and “Cash received (paid) for settlements of contingent consideration arrangements, net” are as follows for the respective periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
(In thousands) |
| Cash flows from operating activities |
|
|
|
|
|
|
|
| Cash received (paid) on oil derivatives |
$1,268 |
|
|
($162,334) |
|
|
($6,130) |
|
|
($257,687) |
|
| Cash received (paid) on natural gas derivatives |
11,757 |
|
|
(21,808) |
|
|
18,376 |
|
|
(26,452) |
|
| Cash paid on NGL derivatives |
— |
|
|
(2,255) |
|
|
— |
|
|
(3,783) |
|
| Cash received (paid) for commodity derivative settlements, net |
$13,025 |
|
|
($186,397) |
|
|
$12,246 |
|
|
($287,922) |
|
Cash received for settlements of contingent consideration arrangements, net (1)
|
$— |
|
|
$— |
|
|
$— |
|
|
$6,492 |
|
|
|
|
|
|
|
|
|
| Cash flows from investing activities |
|
|
|
|
|
|
|
Cash paid for settlement of contingent consideration arrangement (1)
|
$— |
|
|
$— |
|
|
$— |
|
|
($19,171) |
|
|
|
|
|
|
|
|
|
| Cash flows from financing activities |
|
|
|
|
|
|
|
Cash received for settlement of contingent consideration arrangement (1)
|
$— |
|
|
$— |
|
|
$— |
|
|
$8,512 |
|
(1) See “Note 8 — Derivative Instruments and Hedging Activities” of the Notes to Consolidated Financial Statements in our 2022 Annual Report for discussion of the Company’s contingent consideration arrangements.
|
| Schedule of Outstanding Oil and Natural Gas Derivative Contracts |
Listed in the tables below are the outstanding oil and natural gas derivative contracts as of June 30, 2023:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Remainder |
|
For the Full Year |
|
|
| Oil Contracts (WTI) |
2023 |
|
2024 |
|
|
| Swap Contracts |
|
|
|
|
|
| Total volume (Bbls) |
460,000 |
|
|
— |
|
|
|
| Weighted average price per Bbl |
$82.10 |
|
|
$— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Collar Contracts |
|
|
|
|
|
| Total volume (Bbls) |
920,000 |
|
|
— |
|
|
|
| Weighted average price per Bbl |
|
|
|
|
|
| Ceiling (short call) |
$90.00 |
|
|
$— |
|
|
|
| Floor (long put) |
$70.00 |
|
|
$— |
|
|
|
| Put Contracts |
|
|
|
|
|
| Total volume (Bbls) |
736,000 |
|
|
— |
|
|
|
| Weighted average price per Bbl |
$70.00 |
|
|
$— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Remainder |
|
For the Full Year |
|
| Natural Gas Contracts (Henry Hub) |
2023 |
|
2024 |
|
| Swap Contracts |
|
|
|
|
| Total volume (MMBtu) |
2,460,000 |
|
|
— |
|
|
| Weighted average price per MMBtu |
$3.00 |
|
|
$— |
|
|
| Collar Contracts |
|
|
|
|
| Total volume (MMBtu) |
3,217,643 |
|
|
1,820,000 |
|
|
| Weighted average price per MMBtu |
|
|
|
|
| Ceiling (short call) |
$5.58 |
|
|
$6.00 |
|
|
| Floor (long put) |
$3.43 |
|
|
$3.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Natural Gas Contracts (Waha Basis Differential) |
|
|
|
|
| Swap Contracts |
|
|
|
|
| Total volume (MMBtu) |
4,300,000 |
|
|
3,660,000 |
|
|
| Weighted average price per MMBtu |
($1.09) |
|
|
($1.05) |
|
|
|
|
|
|
|
| Natural Gas Contracts (HSC Basis Differential) |
|
|
|
|
| Swap Contracts |
|
|
|
|
| Total volume (MMBtu) |
5,520,000 |
|
|
14,640,000 |
|
|
| Weighted average price per MMBtu |
($0.29) |
|
|
($0.42) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As part of the Percussion Acquisition, the Company assumed all of Percussion Target’s oil, natural gas, and NGL hedge contracts, which are presented in the following tables:
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Remainder |
|
For the Full Year |
| Oil Contracts (WTI) |
2023 |
|
2024 |
| Collar Contracts (Three-Way Collars) |
|
|
|
| Total volume (Bbls) |
1,034,556 |
|
|
3,963,023 |
|
| Weighted average price per Bbl |
|
|
|
| Ceiling (short call) |
$70.20 |
|
|
$78.86 |
|
| Floor (long put) |
$55.00 |
|
|
$58.16 |
|
| Floor (short put) |
$45.00 |
|
|
$48.16 |
|
| Collar Contracts (Two-Way Collars) |
|
|
|
| Total volume (Bbls) |
309,054 |
|
|
— |
|
| Weighted average price per Bbl |
|
|
|
| Ceiling (short call) |
$72.40 |
|
|
$— |
|
| Floor (long put) |
$60.00 |
|
|
$— |
|
| CMA Roll Swap Contracts |
|
|
|
| Total volume (Bbls) |
1,512,363 |
|
|
— |
|
| Weighted average price per Bbl |
$0.30 |
|
|
$— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Remainder |
|
For the Full Year |
| Natural Gas Contracts (Henry Hub) |
2023 |
|
2024 |
| Collar Contracts |
|
|
|
| Total volume (MMBtu) |
555,755 |
|
|
6,778,555 |
|
| Weighted average price per MMBtu |
|
|
|
| Ceiling (short call) |
$3.69 |
|
|
$3.33 |
|
| Floor (long put) |
$2.86 |
|
|
$3.00 |
|
| Natural Gas Contracts (Waha Basis Differential) |
|
|
|
| Swap Contracts |
|
|
|
| Total volume (MMBtu) |
1,840,000 |
|
|
3,660,000 |
|
| Weighted average price per MMBtu |
($1.94) |
|
|
($1.07) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Remainder |
|
For the Full Year |
| NGL Contracts (Mont Belvieu Natural Gasoline) |
2023 |
|
2024 |
| Swap Contracts |
|
|
|
| Total volume (Bbls) |
83,510 |
|
|
— |
|
| Weighted average price per Bbl |
$56.31 |
|
|
$— |
|
| NGL Contracts (Mont Belvieu Propane) |
|
|
|
| Swap Contracts |
|
|
|
| Total volume (Bbls) |
71,831 |
|
|
— |
|
| Weighted average price per Bbl |
$31.37 |
|
|
$— |
|
| NGL Contracts (Mont Belvieu Purity Ethane) |
|
|
|
| Swap Contracts |
|
|
|
| Total volume (Bbls) |
70,428 |
|
|
— |
|
| Weighted average price per Bbl |
$9.66 |
|
|
$— |
|
| NGL Contracts (Mont Belvieu Normal Butane) |
|
|
|
| Swap Contracts |
|
|
|
| Total volume (Bbls) |
64,606 |
|
|
72,105 |
|
| Weighted average price per Bbl |
$35.60 |
|
|
$33.18 |
|
| NGL Contracts (Mont Belvieu Isobutane) |
|
|
|
| Swap Contracts |
|
|
|
| Total volume (Bbls) |
21,141 |
|
|
23,462 |
|
| Weighted average price per Bbl |
$35.47 |
|
|
$33.18 |
|
|