Derivative Instruments and Hedging Activities (Tables)
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12 Months Ended |
Dec. 31, 2021 |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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| Schedule of Offsetting Assets |
The Company presents the fair value of derivative contracts on a net basis in the consolidated balance sheet as they are subject to master netting arrangements. 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 December 31, 2021 |
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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 |
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(In thousands) |
| Assets |
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| Commodity derivative instruments |
$25,469 |
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($23,921) |
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|
$1,548 |
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| Contingent consideration arrangements |
20,833 |
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— |
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|
20,833 |
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| Fair value of derivatives - current |
$46,302
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($23,921) |
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$22,381
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| Commodity derivative instruments |
$1,119 |
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($869) |
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|
$250 |
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| Contingent consideration arrangements |
— |
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— |
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— |
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| Other assets, net |
$1,119
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($869) |
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$250
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| Liabilities |
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Commodity derivative instruments (1)
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($184,898) |
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$23,921 |
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($160,977) |
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| Contingent consideration arrangements |
(25,000) |
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— |
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(25,000) |
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| Fair value of derivatives - current |
($209,898) |
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|
$23,921
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($185,977) |
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| Commodity derivative instruments |
($12,278) |
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|
$869 |
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($11,409) |
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| Contingent consideration arrangements |
— |
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— |
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— |
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| Fair value of derivatives - non current |
($12,278) |
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$869
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($11,409) |
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(1) Includes approximately $2.9 million of deferred premiums, which will be paid as the applicable contracts settle.
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As of December 31, 2020 |
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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 |
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(In thousands) |
| Assets |
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| Commodity derivative instruments |
$21,156 |
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($20,235) |
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|
$921 |
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| Contingent consideration arrangements |
— |
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— |
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— |
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| Fair value of derivatives - current |
$21,156
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($20,235) |
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$921
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| Commodity derivative instruments |
$— |
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$— |
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|
$— |
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| Contingent consideration arrangements |
1,816 |
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— |
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|
1,816 |
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| Other assets, net |
$1,816
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$—
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$1,816
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| Liabilities |
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Commodity derivative instruments (1)
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($117,295) |
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$20,235 |
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($97,060) |
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| Contingent consideration arrangements |
— |
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— |
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— |
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| Fair value of derivatives - current |
($117,295) |
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|
$20,235
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($97,060) |
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| Commodity derivative instruments |
$— |
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$— |
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$— |
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| Contingent consideration arrangements |
(8,618) |
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— |
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(8,618) |
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| September 2020 Warrants liability |
(79,428) |
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— |
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(79,428) |
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| Fair value of derivatives - non current |
($88,046) |
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|
$—
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($88,046) |
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(1) Includes approximately $11.2 million of deferred premiums, which will be paid as the applicable contracts settle.
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| Schedule of Offsetting Liabilities |
The Company presents the fair value of derivative contracts on a net basis in the consolidated balance sheet as they are subject to master netting arrangements. 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 December 31, 2021 |
|
Presented without |
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As Presented with |
|
Effects of Netting |
|
Effects of Netting |
|
Effects of Netting |
|
(In thousands) |
| Assets |
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| Commodity derivative instruments |
$25,469 |
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($23,921) |
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$1,548 |
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| Contingent consideration arrangements |
20,833 |
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— |
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|
20,833 |
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| Fair value of derivatives - current |
$46,302
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($23,921) |
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$22,381
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| Commodity derivative instruments |
$1,119 |
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($869) |
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|
$250 |
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| Contingent consideration arrangements |
— |
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— |
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— |
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| Other assets, net |
$1,119
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($869) |
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|
$250
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| Liabilities |
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Commodity derivative instruments (1)
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($184,898) |
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|
$23,921 |
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($160,977) |
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| Contingent consideration arrangements |
(25,000) |
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|
— |
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(25,000) |
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| Fair value of derivatives - current |
($209,898) |
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|
$23,921
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($185,977) |
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| Commodity derivative instruments |
($12,278) |
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|
$869 |
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($11,409) |
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| Contingent consideration arrangements |
— |
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|
— |
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|
— |
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| Fair value of derivatives - non current |
($12,278) |
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|
$869
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($11,409) |
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(1) Includes approximately $2.9 million of deferred premiums, which will be paid as the applicable contracts settle.
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As of December 31, 2020 |
|
Presented without |
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|
As Presented with |
|
Effects of Netting |
|
Effects of Netting |
|
Effects of Netting |
|
(In thousands) |
| Assets |
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| Commodity derivative instruments |
$21,156 |
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($20,235) |
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|
$921 |
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| Contingent consideration arrangements |
— |
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|
— |
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|
— |
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| Fair value of derivatives - current |
$21,156
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($20,235) |
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|
$921
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| Commodity derivative instruments |
$— |
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|
$— |
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|
$— |
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| Contingent consideration arrangements |
1,816 |
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|
— |
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|
1,816 |
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| Other assets, net |
$1,816
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|
$—
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$1,816
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| Liabilities |
|
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|
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|
Commodity derivative instruments (1)
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($117,295) |
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|
$20,235 |
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|
($97,060) |
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| Contingent consideration arrangements |
— |
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|
— |
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|
— |
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| Fair value of derivatives - current |
($117,295) |
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|
$20,235
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|
($97,060) |
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| Commodity derivative instruments |
$— |
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|
$— |
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|
$— |
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| Contingent consideration arrangements |
(8,618) |
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|
— |
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|
(8,618) |
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| September 2020 Warrants liability |
(79,428) |
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|
— |
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|
(79,428) |
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| Fair value of derivatives - non current |
($88,046) |
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|
$—
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($88,046) |
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(1) Includes approximately $11.2 million of deferred premiums, which will be paid as the applicable contracts settle.
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| Schedule of Gain or Loss on Derivative Contracts |
The components of “(Gain) loss on derivative contracts” are as follows for the respective periods:
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Years Ended December 31, |
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2021 |
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2020 |
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2019 |
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(In thousands) |
| (Gain) loss on oil derivatives |
$429,156 |
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($48,031) |
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$73,313 |
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| (Gain) loss on natural gas derivatives |
33,621 |
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14,883 |
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(8,889) |
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| (Gain) loss on NGL derivatives |
6,768 |
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2,426 |
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— |
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| (Gain) loss on contingent consideration arrangements |
(2,635) |
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2,976 |
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(2,315) |
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| (Gain) loss on September 2020 Warrants liability |
55,390 |
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55,519 |
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— |
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| (Gain) loss on derivative contracts |
$522,300
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$27,773
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$62,109
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| Schedule of Derivative Instruments |
The components of “Cash received (paid) for commodity derivative settlements, net” and “Cash paid for settlements of contingent consideration arrangements, net” are as follows for the respective periods:
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Years Ended December 31, |
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2021 |
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2020 |
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2019 |
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(In thousands) |
| Cash flows from operating activities |
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| Cash received (paid) on oil derivatives |
($350,340) |
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$98,723 |
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($11,188) |
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| Cash received (paid) on natural gas derivatives |
(34,576) |
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|
147 |
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7,399 |
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| Cash received (paid) on NGL derivatives |
(10,181) |
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— |
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— |
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| Cash received (paid) for commodity derivative settlements, net |
($395,097) |
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$98,870
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($3,789) |
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| Cash flows from investing activities |
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| Cash paid for settlements of contingent consideration arrangements, net |
$— |
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($40,000) |
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$— |
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| Schedule of Outstanding Oil and Natural Gas Derivative Contracts |
Listed in the tables below are the outstanding oil, natural gas and NGL derivative contracts as of December 31, 2021:
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For the Full Year |
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For the Full Year |
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| Oil Contracts (WTI) |
2022 |
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2023 |
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| Swap Contracts |
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| Total volume (Bbls) |
5,891,000 |
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497,000 |
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| Weighted average price per Bbl |
$61.61 |
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$70.01 |
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| Collar Contracts |
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| Total volume (Bbls) |
7,097,500 |
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— |
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| Weighted average price per Bbl |
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| Ceiling (short call) |
$67.70 |
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$— |
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| Floor (long put) |
$56.15 |
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$— |
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Short Call Swaption Contracts 1
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| Total volume (Bbls) |
— |
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1,825,000 |
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| Weighted average price per Bbl |
$— |
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|
$72.00 |
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| Oil Contracts (Midland Basis Differential) |
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| Swap Contracts |
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| Total volume (Bbls) |
2,372,500 |
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|
— |
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| Weighted average price per Bbl |
$0.50 |
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$— |
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| Oil Contracts (Argus Houston MEH) |
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| Collar Contracts |
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| Total volume (Bbls) |
452,500 |
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— |
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| Weighted average price per Bbl |
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| Ceiling (short call) |
$63.15 |
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$— |
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| Floor (long put) |
$51.25 |
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$— |
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(1) The 2023 short call swaption contracts have exercise expiration dates of December 30, 2022.
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For the Full Year |
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| Natural Gas Contracts (Henry Hub) |
2022 |
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| Swap Contracts |
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| Total volume (MMBtu) |
7,320,000 |
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| Weighted average price per MMBtu |
$3.08 |
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| Collar Contracts |
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| Total volume (MMBtu) |
7,880,000 |
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| Weighted average price per MMBtu |
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| Ceiling (short call) |
$3.91 |
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| Floor (long put) |
$3.08 |
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| Natural Gas Contracts (Waha Basis Differential) |
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| Swap Contracts |
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| Total volume (MMBtu) |
5,475,000 |
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| Weighted average price per MMBtu |
($0.21) |
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For the Full Year |
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| NGL Contracts (OPIS Mont Belvieu Purity Ethane) |
2022 |
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| Swap Contracts |
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| Total volume (Bbls) |
378,000 |
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| Weighted average price per Bbl |
$15.70 |
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| NGL Contracts (OPIS Mont Belvieu Non-TET Propane) |
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| Swap Contracts |
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| Total volume (Bbls) |
252,000 |
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| Weighted average price per Bbl |
$48.43 |
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| NGL Contracts (OPIS Mont Belvieu Non-TET Butane) |
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| Swap Contracts |
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| Total volume (Bbls) |
99,000 |
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| Weighted average price per Bbl |
$54.39 |
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| NGL Contracts (OPIS Mont Belvieu Non-TET Isobutane) |
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| Swap Contracts |
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| Total volume (Bbls) |
54,000 |
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| Weighted average price per Bbl |
$54.29 |
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