Derivative Instruments and Hedging Activities (Tables)
|
3 Months Ended |
Mar. 31, 2018 |
|---|
| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
|
| Fair Value of Derivative Instruments |
The following table reflects the fair value of the Company’s derivative instruments for the periods presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet Presentation |
|
Asset Fair Value |
|
Liability Fair Value |
|
Net Derivative Fair Value |
Commodity |
|
Classification |
|
Line Description |
|
3/31/2018 |
|
12/31/2017 |
|
3/31/2018 |
|
12/31/2017 |
|
3/31/2018 |
|
12/31/2017 |
Natural gas |
|
Current |
|
Fair value of derivatives |
|
$ |
317 |
|
|
$ |
406 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
317 |
|
|
$ |
406 |
|
Oil |
|
Current |
|
Fair value of derivatives |
|
3,893 |
|
|
— |
|
|
(25,912 |
) |
|
(27,744 |
) |
|
(22,019 |
) |
|
(27,744 |
) |
Oil |
|
Non-current |
|
Fair value of derivatives |
|
— |
|
|
— |
|
|
(2,942 |
) |
|
(1,284 |
) |
|
(2,942 |
) |
|
(1,284 |
) |
Totals |
|
|
|
|
|
$ |
4,210 |
|
|
$ |
406 |
|
|
$ |
(28,854 |
) |
|
$ |
(29,028 |
) |
|
$ |
(24,644 |
) |
|
$ |
(28,622 |
) |
|
| Schedule of Offsetting Assets |
The following presents the impact of this presentation to the Company’s recognized assets and liabilities for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2018 |
|
Presented without |
|
|
|
As Presented with |
|
Effects of Netting |
|
Effects of Netting |
|
Effects of Netting |
Current assets: Fair value of derivatives |
$ |
10,638 |
|
|
$ |
(6,428 |
) |
|
$ |
4,210 |
|
|
|
|
|
|
|
Current liabilities: Fair value of derivatives |
$ |
(32,340 |
) |
|
$ |
6,428 |
|
|
$ |
(25,912 |
) |
Long-term liabilities: Fair value of derivatives |
(2,942 |
) |
|
— |
|
|
(2,942 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2017 |
|
Presented without |
|
|
|
As Presented with |
|
Effects of Netting |
|
Effects of Netting |
|
Effects of Netting |
Current assets: Fair value of derivatives |
$ |
406 |
|
|
$ |
— |
|
|
$ |
406 |
|
|
|
|
|
|
|
Current liabilities: Fair value of derivatives |
$ |
(27,744 |
) |
|
$ |
— |
|
|
$ |
(27,744 |
) |
Long-term liabilities: Fair value of derivatives |
(1,284 |
) |
|
— |
|
|
(1,284 |
) |
|
| Schedule of Offsetting Liabilities |
The following presents the impact of this presentation to the Company’s recognized assets and liabilities for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2018 |
|
Presented without |
|
|
|
As Presented with |
|
Effects of Netting |
|
Effects of Netting |
|
Effects of Netting |
Current assets: Fair value of derivatives |
$ |
10,638 |
|
|
$ |
(6,428 |
) |
|
$ |
4,210 |
|
|
|
|
|
|
|
Current liabilities: Fair value of derivatives |
$ |
(32,340 |
) |
|
$ |
6,428 |
|
|
$ |
(25,912 |
) |
Long-term liabilities: Fair value of derivatives |
(2,942 |
) |
|
— |
|
|
(2,942 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2017 |
|
Presented without |
|
|
|
As Presented with |
|
Effects of Netting |
|
Effects of Netting |
|
Effects of Netting |
Current assets: Fair value of derivatives |
$ |
406 |
|
|
$ |
— |
|
|
$ |
406 |
|
|
|
|
|
|
|
Current liabilities: Fair value of derivatives |
$ |
(27,744 |
) |
|
$ |
— |
|
|
$ |
(27,744 |
) |
Long-term liabilities: Fair value of derivatives |
(1,284 |
) |
|
— |
|
|
(1,284 |
) |
|
| Schedule of Gain or Loss on Derivative Contracts |
For the periods indicated, the Company recorded the following related to its derivatives in the consolidated statement of operations as gain or loss on derivative contracts:
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
2018 |
|
2017 |
Oil derivatives |
|
|
|
|
Net loss on settlements |
|
$ |
(8,916 |
) |
|
$ |
(2,524 |
) |
Net gain on fair value adjustments |
|
4,067 |
|
|
17,266 |
|
Total gain (loss) on oil derivatives |
|
$ |
(4,849 |
) |
|
$ |
14,742 |
|
Natural gas derivatives |
|
|
|
|
Net gain on settlements |
|
$ |
457 |
|
|
$ |
33 |
|
Net gain (loss) on fair value adjustments |
|
(89 |
) |
|
528 |
|
Total gain on natural gas derivatives |
|
$ |
368 |
|
|
$ |
561 |
|
|
|
|
|
|
Total gain (loss) on oil & natural gas derivatives |
|
$ |
(4,481 |
) |
|
$ |
15,303 |
|
|
| 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 March 31, 2018:
|
|
|
|
|
|
|
|
|
|
For the Remainder of |
|
For the Full Year of |
Oil contracts (WTI) |
2018 |
|
2019 |
Swap contracts |
|
|
|
Total volume (MBbls) |
1,559 |
|
|
— |
|
Weighted average price per Bbl |
$ |
51.88 |
|
|
$ |
— |
|
Collar contracts (two-way collars) |
|
|
|
Total volume (MBbls) |
275 |
|
|
— |
|
Weighted average price per Bbl |
|
|
|
Ceiling (short call) |
$ |
60.50 |
|
|
$ |
— |
|
Floor (long put) |
$ |
50.00 |
|
|
$ |
— |
|
Collar contracts combined with short puts (three-way collars) |
|
|
|
Total volume (MBbls) |
2,612 |
|
|
2,739 |
|
Weighted average price per Bbl |
|
|
|
Ceiling (short call option) |
$ |
60.86 |
|
|
$ |
62.96 |
|
Floor (long put option) |
$ |
48.95 |
|
|
$ |
53.67 |
|
Short put option |
$ |
39.21 |
|
|
$ |
43.67 |
|
|
|
|
|
|
|
|
|
|
|
For the Remainder of |
|
For the Full Year of |
Oil contracts (Midland basis differential) |
2018 |
|
2019 |
Swap contracts |
|
|
|
Volume (MBbls) |
3,895 |
|
|
— |
|
Weighted average price per Bbl |
$ |
(0.86 |
) |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
For the Remainder of |
|
For the Full Year of |
Natural gas contracts (Henry Hub) |
2018 |
|
2019 |
Swap contracts |
|
|
|
Total volume (BBtu) |
4,125 |
|
|
— |
|
Weighted average price per MMBtu |
$ |
2.91 |
|
|
— |
|
Subsequent Event
The following derivative contract was executed subsequent to March 31, 2018:
|
|
|
|
|
|
|
|
|
|
For the Remainder of |
|
For the Full Year of |
Oil contracts (WTI) |
2018 |
|
2019 |
Collar contracts combined with short puts (three-way collars) |
|
|
|
Volume (MBbls) |
— |
|
|
730 |
|
Weighted average price per Bbl |
|
|
|
Ceiling (short call option) |
$ |
— |
|
|
$ |
66.53 |
|
Floor (long put option) |
$ |
— |
|
|
$ |
55.00 |
|
Short put option |
$ |
— |
|
|
$ |
45.00 |
|
|