Derivative Instruments and Hedging Activities (Tables)
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12 Months Ended |
Dec. 31, 2023 |
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| 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 December 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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| Commodity derivative instruments |
$25,813 |
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($13,956) |
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$11,857 |
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| Fair value of derivatives - current |
$25,813
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($13,956) |
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$11,857
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| Commodity derivative instruments |
$— |
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$— |
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$— |
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| Contingent consideration arrangements |
12,580 |
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— |
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12,580 |
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Other assets, net |
$12,580
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$—
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$12,580
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| Derivative Liabilities |
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Commodity derivative instruments (1)
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($25,603) |
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$13,956 |
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($11,647) |
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| Contingent consideration arrangements |
(12,500) |
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— |
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(12,500) |
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| Fair value of derivatives - current |
($38,103) |
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$13,956
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($24,147) |
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| Commodity derivative instruments |
$— |
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$— |
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$— |
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| Contingent consideration arrangements |
(29,880) |
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— |
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(29,880) |
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Fair value of derivatives - non-current |
($29,880) |
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$—
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($29,880) |
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(1) Includes approximately $4.1 million of deferred premiums, which will be paid as the applicable contracts settled.
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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 December 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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| Commodity derivative instruments |
$25,813 |
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($13,956) |
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$11,857 |
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| Fair value of derivatives - current |
$25,813
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($13,956) |
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$11,857
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| Commodity derivative instruments |
$— |
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$— |
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$— |
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| Contingent consideration arrangements |
12,580 |
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— |
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12,580 |
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Other assets, net |
$12,580
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$—
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$12,580
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| Derivative Liabilities |
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Commodity derivative instruments (1)
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($25,603) |
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$13,956 |
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($11,647) |
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| Contingent consideration arrangements |
(12,500) |
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— |
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(12,500) |
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| Fair value of derivatives - current |
($38,103) |
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$13,956
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($24,147) |
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| Commodity derivative instruments |
$— |
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$— |
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$— |
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| Contingent consideration arrangements |
(29,880) |
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— |
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(29,880) |
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Fair value of derivatives - non-current |
($29,880) |
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$—
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($29,880) |
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(1) Includes approximately $4.1 million of deferred premiums, which will be paid as the applicable contracts settled.
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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) 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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2023 |
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2022 |
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2021 |
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(In thousands) |
| (Gain) loss on oil derivatives |
($22,371) |
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$287,379 |
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$429,156 |
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(Gain) loss on natural gas derivatives |
(4,990) |
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38,803 |
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33,621 |
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| Loss on NGL derivatives |
2,663 |
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4,771 |
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6,768 |
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| (Gain) loss on contingent consideration arrangements |
5,800 |
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— |
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(2,635) |
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Loss on September 2020 Warrants liability (1)
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— |
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— |
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55,390 |
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| (Gain) loss on derivative contracts |
($18,898) |
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$330,953
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$522,300
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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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2023 |
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2022 |
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2021 |
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(In thousands) |
| Cash flows from operating activities |
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| Cash paid on oil derivatives |
($14,626) |
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($429,017) |
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($350,340) |
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| Cash received (paid) on natural gas derivatives |
18,109 |
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(60,914) |
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(34,576) |
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| Cash paid on NGL derivatives |
(561) |
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(3,783) |
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(10,181) |
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| Cash received (paid) for commodity derivative settlements, net |
$2,922 |
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($493,714) |
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($395,097) |
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| Cash received for settlements of contingent consideration arrangements, net (1) |
$— |
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$6,492 |
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$— |
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| Cash flows from investing activities |
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| Cash paid for settlement of contingent consideration arrangement |
$— |
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($19,171) |
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$— |
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| Cash flows from financing activities |
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| Cash received for settlement of contingent consideration arrangement |
$— |
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$8,512 |
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$— |
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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, 2023:
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For the Full Year |
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| Oil Contracts (WTI) |
2024 |
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Deferred Premium Put Contracts (1)(2)
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| Total volume (Bbls) |
1,076,300 |
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| Weighted average price per Bbl |
$81.66 |
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| Three-Way Collar Contracts |
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| Total volume (Bbls) |
3,963,025 |
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| Weighted average price per Bbl |
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| Ceiling (short call) |
$78.86 |
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| Floor (long put) |
$58.16 |
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| Floor (short put) |
$48.16 |
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(1) Deferred premium put contracts are a combination of a short fixed price swap and a long call option which then performs as a long put position.
(2) Premiums associated with the Company’s deferred premium puts were approximately $4.1 million, which will be paid as the applicable contracts settle.
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For the Full Year |
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| Natural Gas Contracts (Henry Hub) |
2024 |
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| Collar Contracts |
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| Total volume (MMBtu) |
8,598,557 |
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| Weighted average price per MMBtu |
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| Ceiling (short call) |
$3.89 |
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| Floor (long put) |
$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) |
7,320,000 |
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| Weighted average price per MMBtu |
($1.06) |
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| Natural Gas Contracts (HSC Basis Differential) |
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| Swap Contracts |
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| Total volume (MMBtu) |
14,640,000 |
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| Weighted average price per MMBtu |
($0.42) |
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For the Full Year |
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NGL Contracts (Mont Belvieu Normal Butane) |
2024 |
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| Swap Contracts |
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| Total volume (Bbls) |
72,105 |
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| Weighted average price per Bbl |
$33.18 |
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| NGL Contracts (Mont Belvieu Isobutane) |
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| Swap Contracts |
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| Total volume (Bbls) |
23,462 |
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| Weighted average price per Bbl |
$33.18 |
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