Derivative Instruments and Hedging Activities (Tables)
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12 Months Ended |
Dec. 31, 2018 |
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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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12/31/2018 |
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12/31/2017 |
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12/31/2018 |
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12/31/2017 |
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12/31/2018 |
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12/31/2017 |
Oil |
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Current |
|
Fair value of derivatives |
|
$ |
60,097 |
|
|
$ |
— |
|
|
$ |
(10,480 |
) |
|
$ |
(27,744 |
) |
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$ |
49,617 |
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|
$ |
(27,744 |
) |
Oil |
|
Non-current |
|
Fair value of derivatives |
|
— |
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|
— |
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|
(5,672 |
) |
|
(1,284 |
) |
|
(5,672 |
) |
|
(1,284 |
) |
Natural gas |
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Current |
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Fair value of derivatives |
|
5,017 |
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|
406 |
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— |
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— |
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5,017 |
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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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— |
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(1,768 |
) |
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— |
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(1,768 |
) |
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— |
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Totals |
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$ |
65,114 |
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$ |
406 |
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$ |
(17,920 |
) |
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$ |
(29,028 |
) |
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$ |
47,194 |
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$ |
(28,622 |
) |
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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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12/31/2018 |
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12/31/2017 |
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12/31/2018 |
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12/31/2017 |
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12/31/2018 |
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12/31/2017 |
Oil |
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Current |
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Fair value of derivatives |
|
$ |
60,097 |
|
|
$ |
— |
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|
$ |
(10,480 |
) |
|
$ |
(27,744 |
) |
|
$ |
49,617 |
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|
$ |
(27,744 |
) |
Oil |
|
Non-current |
|
Fair value of derivatives |
|
— |
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|
— |
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(5,672 |
) |
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(1,284 |
) |
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(5,672 |
) |
|
(1,284 |
) |
Natural gas |
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Current |
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Fair value of derivatives |
|
5,017 |
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|
406 |
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— |
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— |
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5,017 |
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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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— |
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(1,768 |
) |
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— |
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(1,768 |
) |
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— |
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Totals |
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$ |
65,114 |
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$ |
406 |
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$ |
(17,920 |
) |
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$ |
(29,028 |
) |
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$ |
47,194 |
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$ |
(28,622 |
) |
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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, 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 |
78,091 |
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(12,977 |
) |
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65,114 |
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Current liabilities: Fair value of derivatives |
(23,457 |
) |
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12,977 |
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(10,480 |
) |
Long-term liabilities: Fair value of derivatives |
(7,440 |
) |
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— |
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(7,440 |
) |
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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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| 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, 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 |
78,091 |
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(12,977 |
) |
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65,114 |
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Current liabilities: Fair value of derivatives |
(23,457 |
) |
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12,977 |
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(10,480 |
) |
Long-term liabilities: Fair value of derivatives |
(7,440 |
) |
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— |
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(7,440 |
) |
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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 |
|
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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For the Year Ended December 31, |
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2018 |
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2017 |
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2016 |
Oil derivatives |
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Net gain (loss) on settlements |
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$ |
(27,510 |
) |
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$ |
(9,067 |
) |
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$ |
17,801 |
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Net gain (loss) on fair value adjustments |
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72,973 |
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(11,426 |
) |
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(37,543 |
) |
Total gain (loss) on oil derivatives |
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$ |
45,463 |
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$ |
(20,493 |
) |
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$ |
(19,742 |
) |
Natural gas derivatives |
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Net gain on settlements |
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$ |
238 |
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$ |
594 |
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$ |
102 |
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Net gain (loss) on fair value adjustments |
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2,843 |
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|
998 |
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(593 |
) |
Total gain (loss) on natural gas derivatives |
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$ |
3,081 |
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$ |
1,592 |
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$ |
(491 |
) |
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Total gain (loss) on oil & natural gas derivatives |
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$ |
48,544 |
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$ |
(18,901 |
) |
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$ |
(20,233 |
) |
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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, 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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2019 |
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2020 |
Puts |
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Total volume (Bbls) |
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912,500 |
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— |
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Weighted average price per Bbl |
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$ |
65.00 |
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$ |
— |
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Put spreads |
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Total volume (Bbls) |
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912,500 |
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— |
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Weighted average price per Bbl |
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Floor (long put) |
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$ |
65.00 |
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$ |
— |
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Floor (short put) |
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$ |
42.50 |
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$ |
— |
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Collar contracts combined with short puts (three-way collars) |
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Total volume (Bbls) |
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4,564,000 |
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— |
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Weighted average price per Bbl |
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Ceiling (short call) |
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$ |
67.62 |
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$ |
— |
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Floor (long put) |
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$ |
56.60 |
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$ |
— |
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Floor (short put) |
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$ |
43.60 |
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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) |
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4,746,500 |
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4,024,000 |
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Weighted average price per Bbl |
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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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Collar contracts (two-way collars) |
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Total volume (MMBtu) |
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8,282,500 |
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— |
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Weighted average price per MMBtu |
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Ceiling (short call) |
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$ |
3.46 |
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$ |
— |
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Floor (long put) |
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$ |
2.91 |
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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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11,321,000 |
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4,758,000 |
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Weighted average price per MMBtu |
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$ |
(1.23 |
) |
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$ |
(1.12 |
) |
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