Derivative Instruments and Hedging Activities (Tables)
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9 Months Ended |
Sep. 30, 2023 |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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| Schedule of Offsetting Assets |
The following presents the impact of this presentation to the Company’s recognized assets and liabilities for the periods indicated:
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As of September 30, 2023 |
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Presented without |
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As Presented with |
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Effects of Netting |
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Effects of Netting |
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Effects of Netting |
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(In thousands) |
| Derivative Assets |
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| Commodity derivative instruments |
$9,792 |
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($8,596) |
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$1,196 |
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| Fair value of derivatives - current |
$9,792
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($8,596) |
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$1,196
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| Commodity derivative instruments |
$4,270 |
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($4,208) |
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$62 |
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| Contingent consideration arrangements |
21,680 |
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— |
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21,680 |
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Fair value of derivatives - non-current |
$25,950
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($4,208) |
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$21,742
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| Derivative Liabilities |
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Commodity derivative instruments |
($57,575) |
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$8,596 |
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($48,979) |
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| Contingent consideration arrangements |
(12,210) |
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— |
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(12,210) |
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| Fair value of derivatives - current |
($69,785) |
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$8,596
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($61,189) |
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| Commodity derivative instruments |
($14,805) |
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$4,208 |
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($10,597) |
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| Contingent consideration arrangements |
(34,210) |
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— |
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(34,210) |
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Fair value of derivatives - non-current |
($49,015) |
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$4,208
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($44,807) |
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As of December 31, 2022 |
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Presented without |
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As Presented with |
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Effects of Netting |
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Effects of Netting |
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Effects of Netting |
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(In thousands) |
| Derivative Assets |
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| Fair value of derivatives - current |
$51,984 |
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($30,652) |
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$21,332 |
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| Fair value of derivatives - non-current |
$1,343 |
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($889) |
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$454 |
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| Derivative Liabilities |
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| Fair value of derivatives - current |
($46,849) |
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$30,652 |
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($16,197) |
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| Fair value of derivatives - non-current |
($14,304) |
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$889 |
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($13,415) |
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| Schedule of Offsetting Liabilities |
The following presents the impact of this presentation to the Company’s recognized assets and liabilities for the periods indicated:
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As of September 30, 2023 |
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Presented without |
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As Presented with |
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Effects of Netting |
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Effects of Netting |
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Effects of Netting |
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(In thousands) |
| Derivative Assets |
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| Commodity derivative instruments |
$9,792 |
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($8,596) |
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$1,196 |
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| Fair value of derivatives - current |
$9,792
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($8,596) |
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$1,196
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| Commodity derivative instruments |
$4,270 |
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($4,208) |
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$62 |
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| Contingent consideration arrangements |
21,680 |
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— |
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21,680 |
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Fair value of derivatives - non-current |
$25,950
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($4,208) |
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$21,742
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| Derivative Liabilities |
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Commodity derivative instruments |
($57,575) |
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$8,596 |
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($48,979) |
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| Contingent consideration arrangements |
(12,210) |
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— |
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(12,210) |
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| Fair value of derivatives - current |
($69,785) |
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$8,596
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($61,189) |
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| Commodity derivative instruments |
($14,805) |
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$4,208 |
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($10,597) |
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| Contingent consideration arrangements |
(34,210) |
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— |
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(34,210) |
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Fair value of derivatives - non-current |
($49,015) |
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$4,208
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($44,807) |
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As of December 31, 2022 |
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Presented without |
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As Presented with |
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Effects of Netting |
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Effects of Netting |
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Effects of Netting |
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(In thousands) |
| Derivative Assets |
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| Fair value of derivatives - current |
$51,984 |
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($30,652) |
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$21,332 |
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| Fair value of derivatives - non-current |
$1,343 |
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($889) |
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$454 |
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| Derivative Liabilities |
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| Fair value of derivatives - current |
($46,849) |
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$30,652 |
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($16,197) |
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| Fair value of derivatives - non-current |
($14,304) |
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$889 |
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($13,415) |
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| Schedule of Gain or Loss on Derivative Contracts |
The components of “(Gain) loss on derivative contracts” are as follows for the respective periods:
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2023 |
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2022 |
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2023 |
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2022 |
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(In thousands) |
| (Gain) loss on oil derivatives |
$54,446 |
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($157,731) |
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$18,165 |
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$243,527 |
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(Gain) loss on natural gas derivatives |
(2,315) |
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22,881 |
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2,380 |
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56,800 |
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| Loss on NGL derivatives |
2,933 |
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— |
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2,933 |
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4,771 |
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Loss on contingent consideration arrangements |
740 |
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— |
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740 |
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— |
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| (Gain) loss on derivative contracts |
$55,804
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($134,850) |
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$24,218
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$305,098
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| 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:
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2023 |
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2022 |
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2023 |
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2022 |
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(In thousands) |
| Cash flows from operating activities |
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| Cash received (paid) on oil derivatives |
$1,680 |
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($117,024) |
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($4,450) |
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($374,711) |
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| Cash received (paid) on natural gas derivatives |
(560) |
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(28,572) |
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17,816 |
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(55,024) |
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| Cash paid on NGL derivatives |
(92) |
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— |
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(92) |
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(3,783) |
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| Cash received (paid) for commodity derivative settlements, net |
$1,028 |
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($145,596) |
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$13,274 |
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($433,518) |
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Cash received for settlements of contingent consideration arrangements, net (1)
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$— |
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$— |
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$— |
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$6,492 |
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| Cash flows from investing activities |
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Cash paid for settlement of contingent consideration arrangement (1)
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$— |
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$— |
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$— |
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($19,171) |
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| Cash flows from financing activities |
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Cash received for settlement of contingent consideration arrangement (1)
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$— |
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$— |
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$— |
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$8,512 |
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(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 contingent consideration arrangements.
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| Schedule of Outstanding Oil, Natural Gas, and NGL Derivative Contracts |
Listed in the tables below are the outstanding oil, natural gas, and NGL derivative contracts as of September 30, 2023:
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For the Remainder |
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For the Full Year |
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| Oil Contracts (WTI) |
2023 |
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2024 |
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| Swap Contracts |
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| Total volume (Bbls) |
— |
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1,076,300 |
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| Weighted average price per Bbl |
$— |
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$81.66 |
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| Collar Contracts (Three-Way Collars) |
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| Total volume (Bbls) |
541,528 |
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3,963,025 |
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| Weighted average price per Bbl |
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| Ceiling (short call) |
$70.95 |
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$78.86 |
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| Floor (long put) |
$55.00 |
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$58.16 |
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| Floor (short put) |
$45.00 |
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$48.16 |
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| Collar Contracts (Two-Way Collars) |
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| Total volume (Bbls) |
993,455 |
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— |
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| Weighted average price per Bbl |
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| Ceiling (short call) |
$87.20 |
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$— |
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| Floor (long put) |
$72.04 |
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$— |
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| CMA Roll Swap Contracts |
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| Total volume (Bbls) |
838,828 |
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— |
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| Weighted average price per Bbl |
$0.30 |
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$— |
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For the Remainder |
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For the Full Year |
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| Natural Gas Contracts (Henry Hub) |
2023 |
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2024 |
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| Swap Contracts |
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| Total volume (MMBtu) |
620,000 |
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— |
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| Weighted average price per MMBtu |
$3.00 |
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$— |
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| Collar Contracts |
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| Total volume (MMBtu) |
2,201,104 |
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8,598,557 |
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| Weighted average price per MMBtu |
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| Ceiling (short call) |
$5.37 |
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$3.89 |
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| Floor (long put) |
$3.14 |
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$3.00 |
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| Natural Gas Contracts (Waha Basis Differential) |
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| Swap Contracts |
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| Total volume (MMBtu) |
2,460,000 |
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7,320,000 |
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| Weighted average price per MMBtu |
($1.49) |
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($1.06) |
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| Natural Gas Contracts (HSC Basis Differential) |
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| Swap Contracts |
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| Total volume (MMBtu) |
2,760,000 |
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14,640,000 |
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| Weighted average price per MMBtu |
($0.29) |
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($0.42) |
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For the Remainder |
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For the Full Year |
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| NGL Contracts (Mont Belvieu Natural Gasoline) |
2023 |
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2024 |
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| Swap Contracts |
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| Total volume (Bbls) |
43,105 |
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— |
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| Weighted average price per Bbl |
$56.38 |
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$— |
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| NGL Contracts (Mont Belvieu Propane) |
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| Swap Contracts |
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| Total volume (Bbls) |
35,754 |
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— |
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| Weighted average price per Bbl |
$31.27 |
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$— |
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| NGL Contracts (Mont Belvieu Purity Ethane) |
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| Swap Contracts |
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| Total volume (Bbls) |
35,095 |
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— |
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| Weighted average price per Bbl |
$9.54 |
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$— |
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| NGL Contracts (Mont Belvieu Normal Butane) |
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| Swap Contracts |
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| Total volume (Bbls) |
33,470 |
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72,105 |
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| Weighted average price per Bbl |
$35.56 |
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$33.18 |
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| NGL Contracts (Mont Belvieu Isobutane) |
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| Swap Contracts |
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| Total volume (Bbls) |
10,967 |
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23,462 |
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| Weighted average price per Bbl |
$35.42 |
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$33.18 |
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