Derivative Instruments and Hedging Activities (Tables)
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6 Months Ended |
Jun. 30, 2018 |
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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6/30/2018 |
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12/31/2017 |
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6/30/2018 |
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12/31/2017 |
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6/30/2018 |
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12/31/2017 |
Natural gas |
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Current |
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Fair value of derivatives |
|
$ |
391 |
|
|
$ |
406 |
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$ |
(35 |
) |
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$ |
— |
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$ |
356 |
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$ |
406 |
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Natural gas |
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Non-current |
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Fair value of derivatives |
|
— |
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— |
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|
(302 |
) |
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— |
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(302 |
) |
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— |
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Oil |
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Current |
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Fair value of derivatives |
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11,178 |
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|
— |
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(35,913 |
) |
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(27,744 |
) |
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(24,735 |
) |
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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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2,299 |
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— |
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(10,834 |
) |
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(1,284 |
) |
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(8,535 |
) |
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(1,284 |
) |
Totals |
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$ |
13,868 |
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$ |
406 |
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$ |
(47,084 |
) |
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$ |
(29,028 |
) |
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$ |
(33,216 |
) |
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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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June 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 |
$ |
33,530 |
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$ |
(21,961 |
) |
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$ |
11,569 |
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Long-term assets: Fair value of derivatives |
7,536 |
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(5,237 |
) |
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2,299 |
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Current liabilities: Fair value of derivatives |
$ |
(57,909 |
) |
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$ |
21,961 |
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$ |
(35,948 |
) |
Long-term liabilities: Fair value of derivatives |
(16,373 |
) |
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5,237 |
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(11,136 |
) |
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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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June 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 |
$ |
33,530 |
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$ |
(21,961 |
) |
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$ |
11,569 |
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Long-term assets: Fair value of derivatives |
7,536 |
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(5,237 |
) |
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2,299 |
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Current liabilities: Fair value of derivatives |
$ |
(57,909 |
) |
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$ |
21,961 |
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$ |
(35,948 |
) |
Long-term liabilities: Fair value of derivatives |
(16,373 |
) |
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5,237 |
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(11,136 |
) |
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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 June 30, |
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Six Months Ended June 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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$ |
(8,131 |
) |
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$ |
(315 |
) |
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$ |
(17,049 |
) |
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$ |
(2,840 |
) |
Net gain (loss) on fair value adjustments |
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(8,311 |
) |
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10,128 |
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(4,243 |
) |
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27,394 |
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Total gain (loss) on oil derivatives |
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$ |
(16,442 |
) |
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$ |
9,813 |
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$ |
(21,292 |
) |
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$ |
24,554 |
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Natural gas derivatives |
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Net gain on settlements |
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$ |
151 |
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$ |
48 |
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$ |
607 |
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$ |
82 |
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Net gain (loss) on fair value adjustments |
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(263 |
) |
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633 |
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(351 |
) |
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1,161 |
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Total gain (loss) on natural gas derivatives |
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$ |
(112 |
) |
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$ |
681 |
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$ |
256 |
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$ |
1,243 |
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Total gain (loss) on oil & natural gas derivatives |
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$ |
(16,554 |
) |
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$ |
10,494 |
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$ |
(21,036 |
) |
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$ |
25,797 |
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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, 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) |
1,104,000 |
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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) |
184,000 |
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— |
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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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$ |
— |
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$ |
— |
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Floor (long put) |
$ |
50.00 |
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$ |
— |
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$ |
— |
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Collar contracts combined with short puts (three-way collars) |
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Total volume (Bbls) |
1,748,000 |
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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) |
552,000 |
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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) |
2,208,000 |
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4,380,000 |
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3,660,000 |
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Weighted average price per Bbl |
$ |
(4.26 |
) |
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$ |
(4.77 |
) |
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$ |
(1.47 |
) |
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Natural gas contracts (Henry Hub) |
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Swap contracts |
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Total volume (MMBtu) |
2,760,000 |
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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) |
1,104,000 |
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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) |
1,104,000 |
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2,190,000 |
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2,196,000 |
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Weighted average price per MMBtu |
$ |
(1.14 |
) |
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$ |
(1.14 |
) |
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$ |
(1.14 |
) |
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