Derivative Instruments and Hedging Activities (Tables)
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9 Months Ended |
Sep. 30, 2018 |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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| Fair Value of Derivative Instruments |
The following table reflects the fair value of the Company’s derivative instruments for the periods presented:
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Balance Sheet Presentation |
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Asset Fair Value |
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Liability Fair Value |
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Net Derivative Fair Value |
Commodity |
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Classification |
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Line Description |
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9/30/2018 |
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12/31/2017 |
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9/30/2018 |
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12/31/2017 |
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9/30/2018 |
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12/31/2017 |
Natural gas |
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Current |
|
Fair value of derivatives |
|
$ |
750 |
|
|
$ |
406 |
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|
$ |
(21 |
) |
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$ |
— |
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$ |
729 |
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$ |
406 |
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Natural gas |
|
Non-current |
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Fair value of derivatives |
|
— |
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|
— |
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(1,299 |
) |
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— |
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(1,299 |
) |
|
— |
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Oil |
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Current |
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Fair value of derivatives |
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3,539 |
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— |
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(47,146 |
) |
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(27,744 |
) |
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(43,607 |
) |
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(27,744 |
) |
Oil |
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Non-current |
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Fair value of derivatives |
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— |
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— |
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(14,141 |
) |
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(1,284 |
) |
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(14,141 |
) |
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(1,284 |
) |
Totals |
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$ |
4,289 |
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$ |
406 |
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$ |
(62,607 |
) |
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$ |
(29,028 |
) |
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$ |
(58,318 |
) |
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$ |
(28,622 |
) |
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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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September 30, 2018 |
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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 |
Current assets: Fair value of derivatives |
$ |
16,157 |
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$ |
(11,868 |
) |
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$ |
4,289 |
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Long-term assets: Fair value of derivatives |
2,786 |
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(2,786 |
) |
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— |
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Current liabilities: Fair value of derivatives |
$ |
(59,035 |
) |
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$ |
11,868 |
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$ |
(47,167 |
) |
Long-term liabilities: Fair value of derivatives |
(18,226 |
) |
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2,786 |
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(15,440 |
) |
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December 31, 2017 |
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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 |
Current assets: Fair value of derivatives |
$ |
406 |
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$ |
— |
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$ |
406 |
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Current liabilities: Fair value of derivatives |
$ |
(27,744 |
) |
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$ |
— |
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$ |
(27,744 |
) |
Long-term liabilities: Fair value of derivatives |
(1,284 |
) |
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— |
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(1,284 |
) |
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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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September 30, 2018 |
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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 |
Current assets: Fair value of derivatives |
$ |
16,157 |
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$ |
(11,868 |
) |
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$ |
4,289 |
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Long-term assets: Fair value of derivatives |
2,786 |
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(2,786 |
) |
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— |
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Current liabilities: Fair value of derivatives |
$ |
(59,035 |
) |
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$ |
11,868 |
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$ |
(47,167 |
) |
Long-term liabilities: Fair value of derivatives |
(18,226 |
) |
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2,786 |
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(15,440 |
) |
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December 31, 2017 |
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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 |
Current assets: Fair value of derivatives |
$ |
406 |
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$ |
— |
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$ |
406 |
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Current liabilities: Fair value of derivatives |
$ |
(27,744 |
) |
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$ |
— |
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$ |
(27,744 |
) |
Long-term liabilities: Fair value of derivatives |
(1,284 |
) |
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— |
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(1,284 |
) |
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| 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:
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2018 |
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2017 |
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2018 |
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2017 |
Oil derivatives |
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Net loss on settlements |
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$ |
(9,306 |
) |
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$ |
(1,373 |
) |
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$ |
(26,353 |
) |
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$ |
(4,213 |
) |
Net gain (loss) on fair value adjustments |
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(24,476 |
) |
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(12,811 |
) |
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(28,720 |
) |
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14,584 |
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Total gain (loss) on oil derivatives |
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$ |
(33,782 |
) |
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$ |
(14,184 |
) |
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$ |
(55,073 |
) |
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$ |
10,371 |
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Natural gas derivatives |
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Net gain on settlements |
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$ |
67 |
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$ |
159 |
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$ |
675 |
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$ |
241 |
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Net gain (loss) on fair value adjustments |
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(624 |
) |
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(137 |
) |
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(976 |
) |
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1,024 |
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Total gain (loss) on natural gas derivatives |
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$ |
(557 |
) |
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$ |
22 |
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$ |
(301 |
) |
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$ |
1,265 |
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Total gain (loss) on oil & natural gas derivatives |
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$ |
(34,339 |
) |
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$ |
(14,162 |
) |
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$ |
(55,374 |
) |
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$ |
11,636 |
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| 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 September 30, 2018:
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For the Remainder |
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For the Full Year |
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For the Full Year |
Oil contracts (WTI) |
of 2018 |
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of 2019 |
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of 2020 |
Swap contracts |
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Total volume (Bbls) |
552,000 |
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— |
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— |
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Weighted average price per Bbl |
$ |
52.07 |
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$ |
— |
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$ |
— |
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Collar contracts (two-way collars) |
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Total volume (Bbls) |
92,000 |
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1,095,000 |
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— |
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Weighted average price per Bbl |
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Ceiling (short call) |
$ |
60.50 |
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$ |
80.00 |
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$ |
— |
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Floor (long put) |
$ |
50.00 |
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$ |
65.00 |
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$ |
— |
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Collar contracts combined with short puts (three-way collars) |
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Total volume (Bbls) |
874,000 |
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3,469,000 |
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— |
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Weighted average price per Bbl |
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Ceiling (short call option) |
$ |
60.86 |
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$ |
63.71 |
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$ |
— |
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Floor (long put option) |
$ |
48.95 |
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$ |
53.95 |
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$ |
— |
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Short put option |
$ |
39.21 |
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$ |
43.95 |
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$ |
— |
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Puts |
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Total volume (Bbls) |
276,000 |
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1,825,000 |
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— |
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Weighted average price per Bbl |
$ |
65.00 |
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$ |
65.00 |
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$ |
— |
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Oil contracts (Midland basis differential) |
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Swap contracts |
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Total volume (Bbls) |
1,518,000 |
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4,746,500 |
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4,024,000 |
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Weighted average price per Bbl |
$ |
(5.30 |
) |
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$ |
(4.72 |
) |
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$ |
(1.51 |
) |
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Natural gas contracts (Henry Hub) |
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Swap contracts |
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Total volume (MMBtu) |
1,380,000 |
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— |
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— |
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Weighted average price per MMBtu |
$ |
2.91 |
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$ |
— |
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$ |
— |
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Collar contracts (two-way collars) |
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Total volume (MMBtu) |
552,000 |
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2,372,500 |
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— |
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Weighted average price per MMBtu |
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Ceiling (short call) |
$ |
3.19 |
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$ |
2.95 |
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$ |
— |
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Floor (long put) |
$ |
2.75 |
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$ |
2.65 |
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$ |
— |
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Natural gas contracts (Waha basis differential) |
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Swap contracts |
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Total volume (MMBtu) |
552,000 |
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5,840,000 |
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2,196,000 |
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Weighted average price per MMBtu |
$ |
(1.14 |
) |
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$ |
(1.21 |
) |
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$ |
(1.14 |
) |
Subsequent Event
The following derivative contracts were executed subsequent to September 30, 2018:
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For the Remainder |
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For the Full Year |
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For the Full Year |
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of 2018 |
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of 2019 |
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of 2020 |
Natural gas contracts (Henry Hub) |
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Collar contracts (two-way collars) |
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Total volume (MMBtu) |
— |
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1,355,000 |
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|
— |
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Weighted average price per MMBtu |
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Ceiling (short call) |
— |
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$ |
3.45 |
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|
— |
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Floor (long put) |
— |
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$ |
2.83 |
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— |
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Natural gas contracts (Waha basis differential) |
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Swap contracts |
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Total volume (MMBtu) |
— |
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3,650,000 |
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|
— |
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Weighted average price per MMBtu |
— |
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$ |
(1.30 |
) |
|
— |
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|