Derivative Instruments and Hedging Activities (Tables)
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3 Months Ended |
Mar. 31, 2023 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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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, 2023 |
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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 |
$40,838 |
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($15,077) |
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$25,761 |
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Other assets, net |
$307 |
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($307) |
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$— |
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Derivative Liabilities |
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Fair value of derivatives - current |
($15,647) |
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$15,077 |
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($570) |
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Fair value of derivatives - non-current |
($6,901) |
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$307 |
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($6,594) |
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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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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, 2023 |
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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 |
$40,838 |
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($15,077) |
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$25,761 |
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Other assets, net |
$307 |
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($307) |
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$— |
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Derivative Liabilities |
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Fair value of derivatives - current |
($15,647) |
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$15,077 |
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($570) |
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Fair value of derivatives - non-current |
($6,901) |
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$307 |
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($6,594) |
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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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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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Three Months Ended March 31, |
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2023 |
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2022 |
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(In thousands) |
(Gain) loss on oil derivatives |
($23,344) |
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$325,348 |
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(Gain) loss on natural gas derivatives |
(2,301) |
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28,181 |
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Loss on NGL derivatives |
— |
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4,771 |
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(Gain) loss on derivative contracts |
($25,645) |
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$358,300
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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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Three Months Ended March 31, |
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2023 |
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2022 |
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(In thousands) |
Cash flows from operating activities |
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Cash paid on oil derivatives |
($7,398) |
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($95,353) |
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Cash received (paid) on natural gas derivatives |
6,619 |
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(4,644) |
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Cash paid on NGL derivatives |
— |
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(1,528) |
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Cash paid for commodity derivative settlements, net |
($779) |
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($101,525) |
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Cash received for settlements of contingent consideration arrangements, net (1)
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$— |
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$6,492 |
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Cash flows from investing activities |
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Cash paid for settlement of contingent consideration arrangement (1)
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$— |
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($19,171) |
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Cash flows from financing activities |
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Cash received for settlement of contingent consideration arrangement (1)
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$— |
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$8,512 |
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(1) See “Note 8 — Derivative Instruments and Hedging Activities” of the Notes to Consolidated Financial Statements in our 2022 Annual Report for discussion of the Company’s contingent consideration arrangements.
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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, 2023:
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For the Remainder |
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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) |
866,500 |
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— |
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Weighted average price per Bbl |
$80.41 |
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$— |
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Collar Contracts (Three-Way Collars) |
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Total volume (Bbls) |
1,375,000 |
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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) |
1,555,000 |
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— |
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Weighted average price per Bbl |
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Ceiling (short call) |
$86.35 |
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$— |
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Floor (long put) |
$71.70 |
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$— |
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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 Remainder |
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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) |
5,520,000 |
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— |
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Weighted average price per MMBtu |
$3.70 |
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$— |
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Collar Contracts |
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Total volume (MMBtu) |
4,900,000 |
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1,820,000 |
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Weighted average price per MMBtu |
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Ceiling (short call) |
$5.62 |
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$6.00 |
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Floor (long put) |
$3.56 |
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$3.00 |
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Natural Gas Contracts (Waha Basis Differential) |
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Swap Contracts |
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Total volume (MMBtu) |
7,030,000 |
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3,660,000 |
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Weighted average price per MMBtu |
($1.06) |
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($1.05) |
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Natural Gas Contracts (HSC Basis Differential) |
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Swap Contracts |
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Total volume (MMBtu) |
8,250,000 |
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14,640,000 |
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Weighted average price per MMBtu |
($0.29) |
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($0.42) |
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