Derivative Instruments and Hedging Activities (Tables)
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9 Months Ended |
Sep. 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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9/30/2017 |
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12/31/2016 |
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9/30/2017 |
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12/31/2016 |
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9/30/2017 |
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12/31/2016 |
Natural gas |
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Current |
|
Fair value of derivatives |
|
$ |
431 |
|
|
$ |
— |
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|
$ |
— |
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|
$ |
(593 |
) |
|
$ |
431 |
|
|
$ |
(593 |
) |
Oil |
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Current |
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Fair value of derivatives |
|
2,902 |
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|
103 |
|
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(6,380 |
) |
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(17,675 |
) |
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(3,478 |
) |
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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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1,121 |
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— |
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(659 |
) |
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(28 |
) |
|
462 |
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(28 |
) |
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Totals |
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$ |
4,454 |
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$ |
103 |
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$ |
(7,039 |
) |
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$ |
(18,296 |
) |
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$ |
(2,585 |
) |
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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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September 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 |
$ |
5,441 |
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$ |
(2,108 |
) |
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$ |
3,333 |
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Long-term assets: Fair value of derivatives |
1,388 |
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(267 |
) |
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1,121 |
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Current liabilities: Fair value of derivatives |
$ |
(8,488 |
) |
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$ |
2,108 |
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$ |
(6,380 |
) |
Long-term liabilities: Fair value of derivatives |
(926 |
) |
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267 |
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(659 |
) |
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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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September 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 |
$ |
5,441 |
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$ |
(2,108 |
) |
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$ |
3,333 |
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Long-term assets: Fair value of derivatives |
1,388 |
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(267 |
) |
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1,121 |
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Current liabilities: Fair value of derivatives |
$ |
(8,488 |
) |
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$ |
2,108 |
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$ |
(6,380 |
) |
Long-term liabilities: Fair value of derivatives |
(926 |
) |
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267 |
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(659 |
) |
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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 September 30, |
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Nine Months Ended September 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 |
$ |
(1,373 |
) |
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$ |
4,252 |
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$ |
(4,213 |
) |
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$ |
15,467 |
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Net gain (loss) on fair value adjustments |
(12,811 |
) |
|
699 |
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14,584 |
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(26,904 |
) |
Total gain (loss) on oil derivatives |
$ |
(14,184 |
) |
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$ |
4,951 |
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$ |
10,371 |
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$ |
(11,437 |
) |
Natural gas derivatives |
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Net gain (loss) on settlements |
$ |
159 |
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$ |
(161 |
) |
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$ |
241 |
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$ |
357 |
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Net gain (loss) on fair value adjustments |
(137 |
) |
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345 |
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|
1,024 |
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(201 |
) |
Total gain on natural gas derivatives |
$ |
22 |
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$ |
184 |
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$ |
1,265 |
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$ |
156 |
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Total gain (loss) on oil & natural gas derivatives |
$ |
(14,162 |
) |
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$ |
5,135 |
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$ |
11,636 |
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$ |
(11,281 |
) |
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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, 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) |
184 |
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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) |
184 |
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1,460 |
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Weighted average price per Bbl |
$ |
45.74 |
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$ |
50.93 |
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Deferred premium put spread option |
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Total volume (MBbls) |
253 |
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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) |
340 |
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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) |
169 |
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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)
|
$ |
50.00 |
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$ |
— |
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Long call strike price (a)
|
$ |
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 |
Oil contracts (Midland basis differential) |
2017 |
|
2018 |
Swap contracts |
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Volume (MBbls) |
552 |
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|
4,563 |
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Weighted average price per Bbl |
$ |
(0.52 |
) |
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$ |
(0.98 |
) |
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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) |
368 |
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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) |
856 |
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720 |
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Weighted average price per MMBtu |
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Ceiling (short call option) |
$ |
3.77 |
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$ |
3.84 |
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Floor (long put option) |
$ |
3.23 |
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$ |
3.40 |
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Swap contracts |
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Total volume (BBtu) |
124 |
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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 September 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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|
546 |
|
Weighted average price per Bbl |
$ |
— |
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|
$ |
(0.23 |
) |
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For the Remainder of |
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For the Full Year of |
Oil contracts (WTI) |
2017 |
|
2018 |
Swap contracts |
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|
Volume (MBbls) |
— |
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|
365 |
|
Weighted average price per Bbl |
$ |
— |
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|
$ |
53.40 |
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