Derivative Instruments and Hedging Activities (Tables)
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12 Months Ended |
Dec. 31, 2022 |
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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 sheets 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, 2022 |
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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) |
| Derivative Assets |
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| Fair value of derivatives - current |
$51,984 |
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($30,652) |
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$21,332 |
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| Other assets, net |
$1,343 |
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($889) |
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$454 |
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| Derivative Liabilities |
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| Fair value of derivatives - current |
($46,849) |
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$30,652 |
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($16,197) |
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| Fair value of derivatives - non current |
($14,304) |
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$889 |
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($13,415) |
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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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| 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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| 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 were paid as the applicable contracts settled.
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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 sheets 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, 2022 |
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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) |
| Derivative Assets |
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| Fair value of derivatives - current |
$51,984 |
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($30,652) |
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$21,332 |
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| Other assets, net |
$1,343 |
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($889) |
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$454 |
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| Derivative Liabilities |
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| Fair value of derivatives - current |
($46,849) |
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$30,652 |
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($16,197) |
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| Fair value of derivatives - non current |
($14,304) |
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$889 |
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($13,415) |
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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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| 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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| 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 were paid as the applicable contracts settled.
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| Schedule of Gain or Loss on Derivative Contracts |
The components of “Loss on derivative contracts” are as follows for the respective periods:
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Years Ended December 31, |
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2022 |
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2021 |
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2020 |
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(In thousands) |
| (Gain) loss on oil derivatives |
$287,379 |
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$429,156 |
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($48,031) |
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| Loss on natural gas derivatives |
38,803 |
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33,621 |
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14,883 |
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| Loss on NGL derivatives |
4,771 |
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6,768 |
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2,426 |
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| (Gain) loss on contingent consideration arrangements |
— |
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(2,635) |
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2,976 |
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Loss on September 2020 Warrants liability (1)
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— |
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55,390 |
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55,519 |
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| Loss on derivative contracts |
$330,953
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$522,300
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$27,773
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(1) A detailed discussion of the Company’s September 2020 Warrants can be found in “Part II, Item 8. Financial Statements and Supplementary Data, Note 7 – Borrowings” of its Annual Report on Form 10-K for the year ended December 31, 2021, which was filed with the SEC on February 24, 2022.
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| Schedule of Derivative Instruments |
The components of “Cash received (paid) for commodity derivative settlements, net” and “Cash received (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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2022 |
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2021 |
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2020 |
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(In thousands) |
| Cash flows from operating activities |
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| Cash received (paid) on oil derivatives |
($429,017) |
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($350,340) |
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$98,723 |
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| Cash received (paid) on natural gas derivatives |
(60,914) |
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(34,576) |
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147 |
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| Cash paid on NGL derivatives |
(3,783) |
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(10,181) |
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— |
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| Cash received (paid) for commodity derivative settlements, net |
($493,714) |
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($395,097) |
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$98,870 |
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| Cash received for settlements of contingent consideration arrangements, net |
$6,492 |
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$— |
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$— |
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| Cash flows from investing activities |
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| Cash paid for settlement of contingent consideration arrangement |
($19,171) |
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$— |
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($40,000) |
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| Cash flows from financing activities |
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| Cash received for settlement of contingent consideration arrangement |
$8,512 |
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$— |
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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 and natural gas derivative contracts as of December 31, 2022:
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For the Full Year |
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For the Full Year |
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| Oil Contracts (WTI) |
2023 |
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2024 |
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| Swap Contracts |
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| Total volume (Bbls) |
1,541,500 |
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— |
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| Weighted average price per Bbl |
$79.87 |
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$— |
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| Collar Contracts (Three-Way Collars) |
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| Total volume (Bbls) |
1,825,000 |
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— |
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| Weighted average price per Bbl |
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| Ceiling (short call) |
$90.00 |
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$— |
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| Floor (long put) |
$70.00 |
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$— |
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| Floor (short put) |
$50.00 |
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$— |
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| Collar Contracts (Two-Way Collars) |
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| Total volume (Bbls) |
2,365,000 |
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— |
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| Weighted average price per Bbl |
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| Ceiling (short call) |
$88.26 |
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$— |
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| Floor (long put) |
$72.22 |
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$— |
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Short Call Swaption Contracts (1)
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| Total volume (Bbls) |
— |
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1,830,000 |
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| Weighted average price per Bbl |
$— |
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$80.30 |
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(1) The 2024 short call swaption contracts have exercise expiration dates of December 29, 2023.
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For the Full Year |
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For the Full Year |
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| Natural Gas Contracts (Henry Hub) |
2023 |
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2024 |
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| Swap Contracts |
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| Total volume (MMBtu) |
2,140,000 |
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— |
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| Weighted average price per MMBtu |
$5.11 |
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$— |
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| Collar Contracts |
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| Total volume (MMBtu) |
8,780,000 |
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— |
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| Weighted average price per MMBtu |
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| Ceiling (short call) |
$6.52 |
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$— |
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| Floor (long put) |
$4.37 |
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$— |
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| Natural Gas Contracts (Waha Basis Differential) |
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| Swap Contracts |
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| Total volume (MMBtu) |
6,080,000 |
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— |
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| Weighted average price per MMBtu |
($0.75) |
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$— |
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| Natural Gas Contracts (HSC Basis Differential) |
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| Swap Contracts |
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| Total volume (MMBtu) |
7,300,000 |
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7,320,000 |
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| Weighted average price per MMBtu |
($0.27) |
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($0.45) |
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