Derivative Instruments and Hedging Activities (Tables)
|
3 Months Ended |
Mar. 31, 2022 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
|
Schedule of Offsetting Assets |
The following presents the impact of this presentation to the Company’s recognized assets and liabilities for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of March 31, 2022 |
|
Presented without |
|
|
|
As Presented with |
|
Effects of Netting |
|
Effects of Netting |
|
Effects of Netting |
|
(In thousands) |
Derivative Assets |
|
|
|
|
|
Fair value of derivatives - current |
$10,939 |
|
|
($10,939) |
|
|
$— |
|
Other assets, net |
$15,773 |
|
|
($15,773) |
|
|
$— |
|
|
|
|
|
|
|
Derivative Liabilities |
|
|
|
|
|
Fair value of derivatives - current (1)
|
($403,867) |
|
|
$10,939 |
|
|
($392,928) |
|
Fair value of derivatives - non-current |
($50,207) |
|
|
$15,773 |
|
|
($34,434) |
|
(1) Includes approximately $0.9 million of deferred premiums, which will be paid as the applicable contracts settle.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2021 |
|
Presented without |
|
|
|
As Presented with |
|
Effects of Netting |
|
Effects of Netting |
|
Effects of Netting |
|
(In thousands) |
Assets |
|
|
|
|
|
Commodity derivative instruments |
$25,469 |
|
|
($23,921) |
|
|
$1,548 |
|
Contingent consideration arrangements |
20,833 |
|
|
— |
|
|
20,833 |
|
Fair value of derivatives - current |
$46,302
|
|
|
($23,921) |
|
|
$22,381
|
|
Commodity derivative instruments |
$1,119 |
|
|
($869) |
|
|
$250 |
|
Contingent consideration arrangements |
— |
|
|
— |
|
|
— |
|
Other assets, net |
$1,119
|
|
|
($869) |
|
|
$250
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Commodity derivative instruments (1)
|
($184,898) |
|
|
$23,921 |
|
|
($160,977) |
|
Contingent consideration arrangements |
(25,000) |
|
|
— |
|
|
(25,000) |
|
Fair value of derivatives - current |
($209,898) |
|
|
$23,921
|
|
|
($185,977) |
|
Commodity derivative instruments |
($12,278) |
|
|
$869 |
|
|
($11,409) |
|
Contingent consideration arrangements |
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
Fair value of derivatives - non-current |
($12,278) |
|
|
$869
|
|
|
($11,409) |
|
(1) Includes approximately $2.9 million of deferred premiums, which will be paid as the applicable contracts settle.
|
Schedule of Offsetting Liabilities |
The following presents the impact of this presentation to the Company’s recognized assets and liabilities for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of March 31, 2022 |
|
Presented without |
|
|
|
As Presented with |
|
Effects of Netting |
|
Effects of Netting |
|
Effects of Netting |
|
(In thousands) |
Derivative Assets |
|
|
|
|
|
Fair value of derivatives - current |
$10,939 |
|
|
($10,939) |
|
|
$— |
|
Other assets, net |
$15,773 |
|
|
($15,773) |
|
|
$— |
|
|
|
|
|
|
|
Derivative Liabilities |
|
|
|
|
|
Fair value of derivatives - current (1)
|
($403,867) |
|
|
$10,939 |
|
|
($392,928) |
|
Fair value of derivatives - non-current |
($50,207) |
|
|
$15,773 |
|
|
($34,434) |
|
(1) Includes approximately $0.9 million of deferred premiums, which will be paid as the applicable contracts settle.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2021 |
|
Presented without |
|
|
|
As Presented with |
|
Effects of Netting |
|
Effects of Netting |
|
Effects of Netting |
|
(In thousands) |
Assets |
|
|
|
|
|
Commodity derivative instruments |
$25,469 |
|
|
($23,921) |
|
|
$1,548 |
|
Contingent consideration arrangements |
20,833 |
|
|
— |
|
|
20,833 |
|
Fair value of derivatives - current |
$46,302
|
|
|
($23,921) |
|
|
$22,381
|
|
Commodity derivative instruments |
$1,119 |
|
|
($869) |
|
|
$250 |
|
Contingent consideration arrangements |
— |
|
|
— |
|
|
— |
|
Other assets, net |
$1,119
|
|
|
($869) |
|
|
$250
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Commodity derivative instruments (1)
|
($184,898) |
|
|
$23,921 |
|
|
($160,977) |
|
Contingent consideration arrangements |
(25,000) |
|
|
— |
|
|
(25,000) |
|
Fair value of derivatives - current |
($209,898) |
|
|
$23,921
|
|
|
($185,977) |
|
Commodity derivative instruments |
($12,278) |
|
|
$869 |
|
|
($11,409) |
|
Contingent consideration arrangements |
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
Fair value of derivatives - non-current |
($12,278) |
|
|
$869
|
|
|
($11,409) |
|
(1) Includes approximately $2.9 million of deferred premiums, which will be paid as the applicable contracts settle.
|
Schedule of Gain or Loss on Derivative Contracts |
The components of “Loss on derivative contracts” are as follows for the respective periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2022 |
|
2021 |
|
|
|
|
|
(In thousands) |
Loss on oil derivatives |
$325,348 |
|
|
$149,561 |
|
|
|
|
|
Loss on natural gas derivatives |
28,181 |
|
|
2,697 |
|
|
|
|
|
Loss on NGL derivatives |
4,771 |
|
|
1,138 |
|
|
|
|
|
Loss on contingent consideration arrangements |
— |
|
|
5,737 |
|
|
|
|
|
Loss on September 2020 Warrants liability (1)
|
— |
|
|
55,390 |
|
|
|
|
|
Loss on derivative contracts |
$358,300
|
|
|
$214,523
|
|
|
|
|
|
(1) Further details of the Company’s September 2020 Warrants and the loss on the associated September 2020 Warrants liability are described in “Note 7 - Borrowings”, “Note 8 - Derivative Instruments and Hedging Activities” and “Note 9 - Fair Value Measurements” of the Notes to Consolidated Financial Statements in its 2021 Annual Report.
|
Schedule of Derivative Instruments |
The components of “Cash paid for commodity derivative settlements, net” and “Cash received (paid) for settlements of contingent consideration arrangements, net” are as follows for the respective periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2022 |
|
2021 |
|
|
|
|
|
(In thousands) |
Cash flows from operating activities |
|
|
|
|
|
|
|
Cash paid on oil derivatives |
($95,353) |
|
|
($39,947) |
|
|
|
|
|
Cash paid on natural gas derivatives |
(4,644) |
|
|
(1,369) |
|
|
|
|
|
Cash paid on NGL derivatives |
(1,528) |
|
|
(846) |
|
|
|
|
|
Cash paid for commodity derivative settlements, net |
($101,525) |
|
|
($42,162) |
|
|
|
|
|
Cash received for settlements of contingent consideration arrangements, net |
$6,492 |
|
|
$— |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
Cash paid for settlement of contingent consideration arrangement |
($19,171) |
|
|
$— |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
Cash received for settlement of contingent consideration arrangement |
$8,512 |
|
|
$— |
|
|
|
|
|
|
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 March 31, 2022:
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Remainder |
|
For the Full Year |
Oil Contracts (WTI) |
2022 |
|
2023 |
Swap Contracts |
|
|
|
Total volume (Bbls) |
3,676,000 |
|
(1) |
905,000 |
|
Weighted average price per Bbl |
$62.77 |
|
(1) |
$71.20 |
|
Collar Contracts |
|
|
|
Total volume (Bbls) |
4,712,500 |
|
|
2,096,500 |
|
Weighted average price per Bbl |
|
|
|
Ceiling (short call) |
$68.77 |
|
|
$80.25 |
|
Floor (long put) |
$57.83 |
|
|
$69.48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short Call Swaption Contracts (2)
|
|
|
|
Total volume (Bbls) |
— |
|
|
1,825,000 |
|
Weighted average price per Bbl |
$— |
|
|
$72.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil Contracts (Midland Basis Differential) |
|
|
|
Swap Contracts |
|
|
|
Total volume (Bbls) |
1,787,500 |
|
|
— |
|
Weighted average price per Bbl |
$0.50 |
|
|
$— |
|
|
|
|
|
Oil Contracts (Argus Houston MEH) |
|
|
|
Collar Contracts |
|
|
|
Total volume (Bbls) |
227,500 |
|
|
— |
|
Weighted average price per Bbl |
|
|
|
Ceiling (short call) |
$63.15 |
|
|
$— |
|
Floor (long put) |
$51.25 |
|
|
$— |
|
(1) In March 2022, the Company entered into certain offsetting WTI swaps for the second quarter of 2022 to reduce its exposure to rising oil prices. Those offsetting swaps resulted in a recognized loss of approximately $39.3 million which will be settled in the second quarter of 2022 as the applicable contracts settle.
(2) The 2023 short call swaption contracts have exercise expiration dates of December 30, 2022.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Remainder |
|
For the Full Year |
|
Natural Gas Contracts (Henry Hub) |
2022 |
|
2023 |
|
Swap Contracts |
|
|
|
|
Total volume (MMBtu) |
10,700,000 |
|
|
— |
|
|
Weighted average price per MMBtu |
$3.62 |
|
|
$— |
|
|
Collar Contracts |
|
|
|
|
Total volume (MMBtu) |
6,110,000 |
|
|
2,700,000 |
|
|
Weighted average price per MMBtu |
|
|
|
|
Ceiling (short call) |
$4.51 |
|
|
$5.56 |
|
|
Floor (long put) |
$3.68 |
|
|
$4.58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas Contracts (Waha Basis Differential) |
|
|
|
|
Swap Contracts |
|
|
|
|
Total volume (MMBtu) |
1,220,000 |
|
|
6,080,000 |
|
|
Weighted average price per MMBtu |
($0.75) |
|
|
($0.75) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|