Derivative Contracts (Tables)

9 Months Ended

Sep. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]

Derivative Contracts – Production

The following table presents QEP's volumes and average prices for its commodity derivative swap contracts as of September 30, 2020:

Year	Index	Total Volumes	Average Swap Price per Unit
		(in millions)
Oil sales		(bbls)	($/bbl)
2020	NYMEX WTI	3.9	$	57.60
2020	Argus WTI Midland	0.4	$	57.30
2021 (January - June)	NYMEX WTI	5.0	$	44.78
2021 (July - December)	NYMEX WTI	5.0	$	42.22
Gas sales		(MMbtu)	($/MMbtu)
2020	IF Waha(1)	3.7	$	0.97
2020	NYMEX HH	2.8	$	2.20
2021	IF Waha(1)	18.2	$	1.92
2021	NYMEX HH	9.1	$	2.44

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(1)IF Waha Index pricing reported in Platts' Inside FERC's Gas Market Report, reflects the weighted average price of Natural Gas transactions at the Waha Hub in west Texas on the first day of the month.

QEP uses oil basis swaps, combined with NYMEX WTI fixed-price swaps, to achieve fixed price swaps for the location at which it physically sells its production. The following table presents details of QEP's oil basis swaps as of September 30, 2020:

Year	Index	Basis	Total Volumes	Weighted-Average Differential
			(in millions)
Oil sales			(bbls)	($/bbl)
2020	NYMEX WTI	Argus WTI Midland	1.8	$	0.22
2021	NYMEX WTI	Argus WTI Midland	4.4	$	0.99

The following table presents QEP's volumes and average prices for its commodity derivative costless oil collars as of September 30, 2020:

Year	Index	Total Volumes	Average Price Floor		Average Price Ceiling
		(in millions)
		(bbls)	($/bbl)		($/bbl)
2021	NYMEX WTI	0.4	$	40.00	$	49.20

Derivative Instruments, Gain (Loss) [Table Text Block]

The effects of the change in fair value and settlement of QEP's derivative contracts recorded in "Realized and unrealized gains (losses) on derivative contracts" on the statements of operations are summarized in the following table:

	Three Months Ended				Nine Months Ended
Derivative contracts	September 30,				September 30,
	2020		2019		2020		2019(1)
Realized gains (losses) on commodity derivative contracts	(in millions)
Oil derivative contracts	$	70.3	$	(4.9)	$	233.1	$	(23.9)
Gas derivative contracts	(0.7)		—		(0.5)		(2.9)
Realized gains (losses) on commodity derivative contracts	69.6		(4.9)		232.6		(26.8)
Unrealized gains (losses) on commodity derivative contracts
Oil derivative contracts	(91.7)		92.3		105.0		(30.5)
Gas derivative contracts	(12.1)		—		(20.6)		(0.3)
Unrealized gains (losses) on commodity derivative contracts	(103.8)		92.3		84.4		(30.8)
Total realized and unrealized gains (losses) on commodity derivative contracts related to production	$	(34.2)	$	87.4	$	317.0	$	(57.6)
Derivatives associated with Haynesville Divestiture
Unrealized gains (losses) on commodity derivative contracts
Gas derivative contracts	—		—		—		1.8
Unrealized gains (losses) on commodity derivative contracts related to divestitures (1)	$	—	$	—	$	—	$	1.8
Total realized and unrealized gains (losses) on commodity derivative contracts	$	(34.2)	$	87.4	$	317.0	$	(55.8)

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(1)During the nine months ended September 30, 2019, the unrealized gains (losses) on commodity derivative contracts related to the Haynesville Divestiture were comprised of derivatives included as part of the Haynesville/Cotton Valley purchase and sale agreement, which were subsequently novated to the buyer upon the closing of the sale in January 2019. Refer to Note 3 – Acquisitions and Divestitures for more information. The unrealized gains (losses) on commodity derivatives associated with the Haynesville Divestiture are offset by an equal amount recorded within "Net gain (loss) from asset sales, inclusive of restructuring costs" on the statements of operations.