Derivative Instruments and Hedging Activities (Tables)
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12 Months Ended |
Dec. 31, 2017 |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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| Schedule of 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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12/31/2017 |
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12/31/2016 |
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12/31/2017 |
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12/31/2016 |
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12/31/2017 |
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12/31/2016 |
Natural gas |
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Current |
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Fair value of derivatives |
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$ |
406 |
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|
$ |
— |
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$ |
— |
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$ |
(593 |
) |
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$ |
406 |
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$ |
(593 |
) |
Oil |
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Current |
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Fair value of derivatives |
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— |
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|
103 |
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(27,744 |
) |
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(17,675 |
) |
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(27,744 |
) |
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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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— |
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— |
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(1,284 |
) |
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(28 |
) |
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(1,284 |
) |
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(28 |
) |
Totals |
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$ |
406 |
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$ |
103 |
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$ |
(29,028 |
) |
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$ |
(18,296 |
) |
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$ |
(28,622 |
) |
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$ |
(18,193 |
) |
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| Schedule of Offsetting Assets |
As previously discussed, the Company’s derivative contracts are subject to master netting arrangements. The Company’s policy is to present the fair value of derivative contracts on a net basis in the consolidated balance sheet. The following presents the impact of this presentation to the Company’s recognized assets and liabilities for the periods indicated:
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For the Year Ended 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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For the Year Ended 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 |
As previously discussed, the Company’s derivative contracts are subject to master netting arrangements. The Company’s policy is to present the fair value of derivative contracts on a net basis in the consolidated balance sheet. The following presents the impact of this presentation to the Company’s recognized assets and liabilities for the periods indicated:
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For the Year Ended 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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For the Year Ended 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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For the Year Ended December 31, |
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2017 |
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2016 |
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2015 |
Oil derivatives |
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Net gain (loss) on settlements |
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$ |
(9,067 |
) |
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$ |
17,801 |
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$ |
33,299 |
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Net loss on fair value adjustments |
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(11,426 |
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(37,543 |
) |
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(5,403 |
) |
Total gain (loss) on oil derivatives |
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$ |
(20,493 |
) |
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$ |
(19,742 |
) |
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$ |
27,896 |
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Natural gas derivatives |
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Net gain on settlements |
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$ |
594 |
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$ |
102 |
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$ |
1,717 |
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Net gain (loss) on fair value adjustments |
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998 |
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(593 |
) |
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(1,255 |
) |
Total gain (loss) on natural gas derivatives |
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$ |
1,592 |
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$ |
(491 |
) |
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$ |
462 |
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Total gain (loss) on oil & natural gas derivatives |
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$ |
(18,901 |
) |
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$ |
(20,233 |
) |
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$ |
28,358 |
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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 December 31, 2017:
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For the Full Year of |
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For the Full Year of |
Oil contracts (WTI) |
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2018 |
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2019 |
Swap contracts |
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Total volume (MBbls) |
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2,009 |
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— |
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Weighted average price per Bbl |
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$ |
51.78 |
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$ |
— |
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Collar contracts (two-way collars) |
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Total volume (MBbls) |
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365 |
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— |
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Weighted average price per Bbl |
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Ceiling (short call) |
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$ |
60.50 |
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$ |
— |
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Floor (long put) |
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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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730 |
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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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$ |
58.50 |
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Floor (long put option) |
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$ |
48.95 |
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$ |
50.00 |
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Short put option |
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$ |
39.21 |
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$ |
40.00 |
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For the Full Year of |
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For the Full Year of |
Oil contracts (Midland basis differential) |
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2018 |
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2019 |
Swap contracts |
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Volume (MBbls) |
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5,289 |
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— |
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Weighted average price per Bbl |
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$ |
(0.86 |
) |
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$ |
— |
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For the Full Year of |
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For the Full Year of |
Natural gas contracts |
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2018 |
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2019 |
Collar contracts (Henry Hub, two-way collars) |
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Total volume (BBtu) |
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720 |
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— |
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Weighted average price per MMBtu |
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Ceiling (short call option) |
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$ |
3.84 |
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$ |
— |
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Floor (long put option) |
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$ |
3.40 |
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$ |
— |
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Subsequent Event
The following derivative contracts were executed after December 31, 2017 and before February 23, 2018:
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For the Full Year of |
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For the Full Year of |
Oil contracts (WTI) |
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2018 |
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2019 |
Collar contracts combined with short puts (three-way collars) |
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Total volume (MBbls) |
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— |
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1,095 |
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Weighted average price per Bbl |
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Ceiling (short call option) |
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$ |
— |
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$ |
65.00 |
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Floor (long put option) |
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$ |
— |
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$ |
55.00 |
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Short put option |
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$ |
— |
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$ |
45.00 |
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Natural gas contracts |
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Swap contracts (Henry Hub) |
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Total volume (BBtu) |
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3,366 |
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— |
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Weighted average price per MMBtu |
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$ |
2.95 |
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$ |
— |
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