Derivative Instruments and Hedging Activities (Tables)
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6 Months Ended |
Jun. 30, 2017 |
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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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6/30/2017 |
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12/31/2016 |
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6/30/2017 |
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12/31/2016 |
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6/30/2017 |
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12/31/2016 |
Natural gas |
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Current |
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Fair value of derivatives |
|
$ |
567 |
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|
$ |
— |
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$ |
— |
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|
$ |
(593 |
) |
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$ |
567 |
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$ |
(593 |
) |
Oil |
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Current |
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Fair value of derivatives |
|
8,674 |
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|
103 |
|
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(2,243 |
) |
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(17,675 |
) |
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6,431 |
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(17,572 |
) |
Oil |
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Non-current |
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Fair value of derivatives |
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3,804 |
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— |
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(441 |
) |
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(28 |
) |
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3,363 |
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(28 |
) |
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Totals |
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$ |
13,045 |
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$ |
103 |
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$ |
(2,684 |
) |
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$ |
(18,296 |
) |
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$ |
10,361 |
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$ |
(18,193 |
) |
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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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June 30, 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 |
$ |
11,104 |
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$ |
(1,863 |
) |
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$ |
9,241 |
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Long-term assets: Fair value of derivatives |
3,813 |
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(9 |
) |
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3,804 |
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Current liabilities: Fair value of derivatives |
$ |
(4,106 |
) |
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$ |
1,863 |
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$ |
(2,243 |
) |
Long-term liabilities: Fair value of derivatives |
(450 |
) |
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9 |
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(441 |
) |
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December 31, 2016 |
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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 |
$ |
1,836 |
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$ |
(1,733 |
) |
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$ |
103 |
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Current liabilities: Fair value of derivatives |
$ |
(20,001 |
) |
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$ |
1,733 |
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$ |
(18,268 |
) |
Long-term liabilities: Fair value of derivatives |
(28 |
) |
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— |
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(28 |
) |
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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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June 30, 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 |
$ |
11,104 |
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$ |
(1,863 |
) |
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$ |
9,241 |
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Long-term assets: Fair value of derivatives |
3,813 |
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(9 |
) |
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3,804 |
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Current liabilities: Fair value of derivatives |
$ |
(4,106 |
) |
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$ |
1,863 |
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$ |
(2,243 |
) |
Long-term liabilities: Fair value of derivatives |
(450 |
) |
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9 |
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(441 |
) |
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December 31, 2016 |
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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 |
$ |
1,836 |
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$ |
(1,733 |
) |
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$ |
103 |
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Current liabilities: Fair value of derivatives |
$ |
(20,001 |
) |
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$ |
1,733 |
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$ |
(18,268 |
) |
Long-term liabilities: Fair value of derivatives |
(28 |
) |
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— |
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(28 |
) |
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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 June 30, |
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Six Months Ended June 30, |
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2017 |
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2016 |
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2017 |
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2016 |
Oil derivatives |
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Net gain (loss) on settlements |
$ |
(315 |
) |
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$ |
3,707 |
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$ |
(2,840 |
) |
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$ |
11,214 |
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Net gain (loss) on fair value adjustments |
10,128 |
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(18,466 |
) |
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27,394 |
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(27,604 |
) |
Total gain (loss) on oil derivatives |
$ |
9,813 |
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$ |
(14,759 |
) |
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$ |
24,554 |
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$ |
(16,390 |
) |
Natural gas derivatives |
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Net gain on settlements |
$ |
48 |
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$ |
310 |
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$ |
82 |
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$ |
519 |
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Net gain (loss) on fair value adjustments |
633 |
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(1,035 |
) |
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1,161 |
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(545 |
) |
Total gain (loss) on natural gas derivatives |
$ |
681 |
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$ |
(725 |
) |
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$ |
1,243 |
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$ |
(26 |
) |
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Total gain (loss) on oil & natural gas derivatives |
$ |
10,494 |
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$ |
(15,484 |
) |
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$ |
25,797 |
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$ |
(16,416 |
) |
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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 June 30, 2017:
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For the Remainder of |
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For the Full Year of |
Oil contracts (WTI) |
2017 |
|
2018 |
Swap contracts combined with short puts (enhanced swaps) |
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Total volume (MBbls) |
368 |
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— |
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Weighted average price per Bbl |
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Swap |
$ |
44.50 |
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$ |
— |
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Short put option |
$ |
30.00 |
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$ |
— |
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Swap contracts |
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Total volume (MBbls) |
368 |
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— |
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Weighted average price per Bbl |
$ |
45.74 |
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$ |
— |
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Deferred premium put spread option |
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Total volume (MBbls) |
506 |
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— |
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Premium per Bbl |
$ |
2.45 |
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$ |
— |
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Weighted average price per Bbl |
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Long put option |
$ |
50.00 |
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$ |
— |
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Short put option |
$ |
40.00 |
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$ |
— |
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Collar contracts (two-way collars) |
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Total volume (MBbls) |
681 |
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— |
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Weighted average price per Bbl |
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Ceiling (short call) |
$ |
58.19 |
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$ |
— |
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Floor (long put) |
$ |
47.50 |
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$ |
— |
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Call option contracts |
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Total volume (MBbls) |
338 |
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— |
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Premium per Bbl |
$ |
1.82 |
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$ |
— |
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Weighted average price per Bbl |
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Short call strike price (a)
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$ |
50.00 |
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$ |
— |
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Long call strike price (a)
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$ |
50.00 |
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$ |
— |
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Collar contracts combined with short puts (three-way collars) |
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Total volume (MBbls) |
— |
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3,468 |
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Weighted average price per Bbl |
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Ceiling (short call option) |
$ |
— |
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$ |
60.86 |
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Floor (long put option) |
$ |
— |
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$ |
48.95 |
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Short put option |
$ |
— |
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$ |
39.21 |
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(a) |
Offsetting contracts. |
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For the Remainder of |
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For the Full Year of |
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2017 |
|
2018 |
Oil contracts (Midland basis differential) |
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Swap contracts |
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Volume (MBbls) |
1,104 |
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2,190 |
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Weighted average price per Bbl |
$ |
(0.52 |
) |
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$ |
(1.02 |
) |
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For the Remainder of |
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For the Full Year of |
Natural gas contracts |
2017 |
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2018 |
Collar contracts combined with short puts (Henry Hub, three-way collars) |
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Total volume (BBtu) |
736 |
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— |
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Weighted average price per MMBtu |
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Ceiling (short call option) |
$ |
3.71 |
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|
$ |
— |
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Floor (long put option) |
$ |
3.00 |
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$ |
— |
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Short put option |
$ |
2.50 |
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$ |
— |
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Collar contracts (Henry Hub, two-way collars) |
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Total volume (BBtu) |
1,224 |
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|
720 |
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Weighted average price per MMBtu |
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Ceiling (short call option) |
$ |
3.74 |
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$ |
3.84 |
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Floor (long put option) |
$ |
3.16 |
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$ |
3.40 |
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Swap contracts |
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Total volume (BBtu) |
492 |
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|
— |
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Weighted average price per MMBtu |
$ |
3.39 |
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|
$ |
— |
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Subsequent event
The following derivative contracts were executed subsequent to June 30, 2017:
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For the Remainder of |
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For the Full Year of |
Oil contracts (Midland basis differential) |
2017 |
|
2018 |
Swap contracts |
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Volume (MBbls) |
— |
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|
548 |
|
Weighted average price per Bbl |
$ |
— |
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$ |
(1.05 |
) |
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Oil contracts (WTI) |
For the Remainder of |
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For the Full Year of |
Swap contracts |
2017 |
|
2018 |
Volume (MBbls) |
— |
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|
730 |
|
Weighted average price per Bbl |
$ |
— |
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|
$ |
50.03 |
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