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Derivative Instruments
 6 Months Ended
Mar. 31, 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 limit future revenues from favorable price changes. For the three and six months ended March 31, 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 (expenses) in the condensed consolidated statement of operations.
As of March 31, 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 March 31, 2022, related to oil and natural gas production:
Weighted Average Price
Calendar Quarter / YearNotional VolumeFixedPutCall
($ per unit)
Oil Swaps (Bbl)
Q2 2022345,000 $57.47 $— $— 
Q3 2022270,000 $56.03 $— $— 
Q4 2022270,000 $56.03 $— $— 
2023720,000 $53.27 $— $— 
Natural Gas Swaps (Mcf)
Q2 2022540,000 $3.26 $— $— 
Q3 2022540,000 $3.26 $— $— 
Q4 2022540,000 $3.26 $— $— 
Oil Collars (Bbl)
Q2 202290,000 $— $35.00 $42.63 
Q3 2022117,000 $— $37.31 $59.43 
Q4 202290,000 $— $35.00 $42.63 
2023— $— $— $— 
20243,000 $— $50.00 $88.00 
Oil Basis (Bbl)
Q2 2022240,000 $0.41 $— $— 
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 March 31, 2022:
Open Coverage PeriodNotional AmountFixed Rate
(In thousands)
Floating-to-Fixed Interest Rate Swaps
April 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 March 31, 2022 and September 30, 2021:
March 31, 2022
Balance Sheet ClassificationGross Fair ValueAmounts NettedNet Fair Value
(In thousands)
Current derivative assets$772 $(79)$693 
Non-current derivative assets468 (14)454 
Current derivative liabilities(58,333)79 (58,254)
Non-current derivative liabilities(14,313)14 (14,299)
Total$(71,406)$— $(71,406)
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$(50,970)$— $(50,970)
The following table presents the Company's derivative activities for the three and six months ended March 31, 2022 and 2021:
Three Months Ended March 31,Six Months Ended March 31,
2022202120222021
(In thousands)
Fair value of net asset (liability), beginning of period$(40,149)$2,839 $(50,970)$21,921 
Loss on derivatives(49,632)(24,903)(54,825)(38,812)
Settlements on derivatives18,375 2,594 34,389 (2,579)
Fair value of net liability, end of period$(71,406)$(19,470)$(71,406)$(19,470)