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Derivative Instruments
 9 Months Ended
Jun. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
Oil and Natural Gas Contracts
The Company uses commodity based derivative contracts to reduce exposure to fluctuations in oil and natural gas prices. While the use of these contracts limits the downside risk for adverse price changes, their use also limits future revenues from favorable price changes. For the three and nine months ended June 30, 2022 and 2021, we have not designated our derivative contracts as hedges for accounting purposes, and therefore changes in the fair value of derivatives are included and recognized in other income (expense) in the condensed consolidated statement of operations.
As of June 30, 2022, the Company's oil and natural gas derivative instruments consisted of fixed price swaps, costless collars, and basis protection swaps. The following table summarizes the open financial derivative positions as of June 30, 2022, related to oil and natural gas production:
Weighted Average Price
Calendar Quarter / YearNotional VolumeFixedPutCall
($ per unit)
Oil Swaps (Bbl)
Q3 2022270,000 $56.03 $— $— 
Q4 2022270,000 $56.03 $— $— 
2023720,000 $53.27 $— $— 
Natural Gas Swaps (Mcf)
Q3 2022540,000 $3.26 $— $— 
Q4 2022540,000 $3.26 $— $— 
Oil Collars (Bbl)
Q3 2022117,000 $— $37.31 $59.43 
Q4 202290,000 $— $35.00 $42.63 
2023— $— $— $— 
20243,000 $— $50.00 $88.00 
Oil Basis (Bbl)
Q3 2022240,000 $0.41 $— $— 
Q4 2022240,000 $0.41 $— $— 
Interest Rate Contracts
The Company has entered into floating-to-fixed interest rate swaps, in which it receives a floating market rate equal to one-month LIBOR and pays a fixed interest rate, to manage interest rate exposure related to the Company's revolving credit facility.
The following table summarizes the open interest rate derivative positions as of June 30, 2022:
Open Coverage PeriodNotional AmountFixed Rate
(In thousands)
Floating-to-Fixed Interest Rate Swaps
July 2022 - September 2023$40,000 0.24 %
Balance Sheet Presentation of Derivatives    
The following table presents the location and fair value of the Company’s derivative contracts included in the condensed consolidated balance sheets as of June 30, 2022 and September 30, 2021:
June 30, 2022
Balance Sheet ClassificationGross Fair ValueAmounts NettedNet Fair Value
(In thousands)
Current derivative assets$1,161 $(27)$1,134 
Non-current derivative assets313 (13)300 
Current derivative liabilities(50,325)27 (50,298)
Non-current derivative liabilities(9,135)13 (9,122)
Total$(57,986)$— $(57,986)
September 30, 2021
Balance Sheet ClassificationGross Fair ValueAmounts NettedNet Fair Value
(In thousands)
Current derivative assets$186 $(186)$— 
Non-current derivative assets228 (122)106 
Current derivative liabilities(42,330)186 (42,144)
Non-current derivative liabilities(9,054)122 (8,932)
Total$(50,970)$— $(50,970)
The following table presents the components of the Company's loss on derivatives for the three and nine months ended June 30, 2022 and 2021:
Three Months Ended June 30,Nine Months Ended June 30,
2022202120222021
(In thousands)
Settlements on derivative contracts$(25,783)$(7,712)$(60,172)$(5,133)
Non-cash gain (loss) on derivatives13,420 (27,684)(7,016)(69,075)
Loss on derivatives$(12,363)$(35,396)$(67,188)$(74,208)