Derivative Instruments and Hedging Activities (Tables)
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3 Months Ended |
Mar. 31, 2019 |
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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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3/31/2019 |
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12/31/2018 |
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3/31/2019 |
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12/31/2018 |
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3/31/2019 |
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12/31/2018 |
Oil |
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Current |
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Fair value of derivatives |
|
$ |
7,473 |
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$ |
60,097 |
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$ |
(24,550 |
) |
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$ |
(10,480 |
) |
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$ |
(17,077 |
) |
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$ |
49,617 |
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Oil |
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Non-current |
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Fair value of derivatives |
|
385 |
|
|
— |
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(6,190 |
) |
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(5,672 |
) |
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(5,805 |
) |
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(5,672 |
) |
Natural gas |
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Current |
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Fair value of derivatives |
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3,899 |
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5,017 |
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— |
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— |
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3,899 |
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5,017 |
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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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(793 |
) |
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(1,768 |
) |
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(793 |
) |
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(1,768 |
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Totals |
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$ |
11,757 |
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$ |
65,114 |
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$ |
(31,533 |
) |
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$ |
(17,920 |
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$ |
(19,776 |
) |
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$ |
47,194 |
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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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As of March 31, 2019 |
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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 |
$ |
20,540 |
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$ |
(9,168 |
) |
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$ |
11,372 |
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Long-term assets: Fair value of derivatives |
829 |
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(444 |
) |
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385 |
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Current liabilities: Fair value of derivatives |
$ |
(33,718 |
) |
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$ |
9,168 |
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$ |
(24,550 |
) |
Long-term liabilities: Fair value of derivatives |
(7,427 |
) |
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444 |
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(6,983 |
) |
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As of 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 |
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Long-term liabilities: Fair value of derivatives |
(7,440 |
) |
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— |
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(7,440 |
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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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As of March 31, 2019 |
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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 |
$ |
20,540 |
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$ |
(9,168 |
) |
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$ |
11,372 |
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Long-term assets: Fair value of derivatives |
829 |
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(444 |
) |
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385 |
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Current liabilities: Fair value of derivatives |
$ |
(33,718 |
) |
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$ |
9,168 |
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$ |
(24,550 |
) |
Long-term liabilities: Fair value of derivatives |
(7,427 |
) |
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444 |
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(6,983 |
) |
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As of 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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| Schedule of Gain or Loss on Derivative Contracts |
For the periods indicated, the Company recorded the following in the consolidated statements of operations as a gain or loss on derivative contracts:
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Three Months Ended March 31, |
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2019 |
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2018 |
Oil derivatives |
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Net loss on settlements |
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$ |
(1,542 |
) |
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$ |
(8,916 |
) |
Net gain (loss) on fair value adjustments |
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(66,827 |
) |
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4,067 |
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Total loss on oil derivatives |
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(68,369 |
) |
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(4,849 |
) |
Natural gas derivatives |
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Net gain on settlements |
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1,252 |
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|
457 |
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Net loss on fair value adjustments |
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(143 |
) |
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(89 |
) |
Total gain on natural gas derivatives |
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1,109 |
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|
368 |
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Total loss on oil & natural gas derivatives |
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$ |
(67,260 |
) |
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$ |
(4,481 |
) |
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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 March 31, 2019:
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For the Remainder |
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For the Full Year |
Oil contracts (WTI) |
of 2019 |
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of 2020 |
Puts |
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Total volume (Bbls) |
687,500 |
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— |
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Weighted average price per Bbl |
$ |
65.00 |
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$ |
— |
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Put spreads |
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Total volume (Bbls) |
687,500 |
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— |
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Weighted average price per Bbl |
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Floor (long put) |
$ |
65.00 |
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$ |
— |
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Floor (short put) |
$ |
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) |
3,484,000 |
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915,000 |
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Weighted average price per Bbl |
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Ceiling (short call) |
$ |
67.56 |
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$ |
65.02 |
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Floor (long put) |
$ |
56.58 |
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$ |
55.00 |
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Floor (short put) |
$ |
43.62 |
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$ |
45.00 |
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Collar contracts (two-way collars) |
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Total volume (Bbls) |
— |
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732,000 |
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Weighted average price per Bbl |
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Ceiling (short call) |
$ |
— |
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$ |
64.63 |
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Floor (long put) |
$ |
— |
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$ |
55.00 |
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Oil contracts (Midland basis differential) |
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Swap contracts |
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Total volume (Bbls) |
5,102,000 |
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4,576,000 |
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Weighted average price per Bbl |
$ |
(3.95 |
) |
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$ |
(1.29 |
) |
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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) |
2,697,500 |
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— |
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Weighted average price per MMBtu |
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Ceiling (short call) |
$ |
3.68 |
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$ |
— |
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Floor (long put) |
$ |
3.09 |
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$ |
— |
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Swap contracts |
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Total volume (MMBtu) |
1,852,000 |
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— |
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Weighted average price per MMBtu |
$ |
2.88 |
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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) |
5,961,000 |
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4,758,000 |
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Weighted average price per MMBtu |
$ |
(1.19 |
) |
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$ |
(1.12 |
) |
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