Derivative Contracts (Tables)

12 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Contracts – Production

The following table presents QEP's volumes and average prices for its commodity derivative swap contracts as of December 31, 2020:


Year	Index	Total Volumes	Average Swap Price per Unit
		(in millions)
Oil sales		(bbls)	($/bbl)
2021 (January - June)	NYMEX WTI	7.3	$	44.54
2021 (July - December)	NYMEX WTI	6.3	$	42.64
2022 (January - June)	NYMEX WTI	0.2	$	45.00
Gas Sales		(MMbtu)	($/MMbtu)
2021	IF Waha	18.3	$	1.92
2021	NYMEX HH	9.1	$	2.44

derivative volumes and weighted average differential [Table Text Block]

QEP uses oil basis swaps, combined with NYMEX WTI fixed price swaps, to achieve fixed price swaps for the location at which it sells its physical production. QEP uses CMA rolls, combined with NYMEX CMA or NYMEX WTI fixed price swaps, to reduce the volatility in oil pricing between the trade month and the physical delivery month. The following table presents details of QEP's oil basis swaps as of December 31, 2020:


Year	Index	Basis	Total Volumes	Weighted-Average Differential
			(in millions)
Oil sales			(bbls)	($/bbl)
2021	NYMEX WTI	Argus WTI Midland	5.8	$	0.88
2021	NYMEX CMA	Argus WTI	1.5	$	0.00
2021	NYMEX WTI	NYMEX Roll	1.8	$	(0.05)

The following table presents QEP's volumes and average prices for its commodity derivative costless oil collars as of December 31, 2020:


Year	Index	Total Volumes	Average Price Floor		Average Price Ceiling
		(in millions)
		(bbls)	($/bbl)		($/bbl)
2021 (January - June)	NYMEX WTI	0.3	$	40.73	$	50.17
2021 (July - December)	NYMEX WTI	0.8	$	40.16	$	49.89

Effects of Derivative Transactions


Derivative contracts	Year Ended December 31,
	2020		2019		2018
Realized gains (losses) on commodity derivative contracts	(in millions)
Production
Oil derivative contracts	$	296.4	$	(32.2)	$	(153.4)
Gas derivative contracts	(4.5)		(2.9)		(5.0)
Gas Storage
Gas derivative contracts	—		—		0.3
Realized gains (losses) on commodity derivative contracts	291.9		(35.1)		(158.1)
Unrealized gains (losses) on commodity derivative contracts
Production
Oil derivative contracts	(48.7)		(139.8)		277.0
Gas derivative contracts	(10.5)		(0.3)		(22.3)
Gas Storage
Gas derivative contracts	—		—		(0.3)
Unrealized gains (losses) on commodity derivative contracts	(59.2)		(140.1)		254.4
Total realized and unrealized gains (losses) on commodity derivative contracts related to production and storage contracts	$	232.7	$	(175.2)	$	96.3

Derivatives associated with divestitures
Unrealized gains (losses) on commodity derivative contracts
Production
Oil derivative contracts	$	—	$	—	$	(2.7)
Gas derivative contracts	—		1.8		—
NGL derivative contracts	—		—		(3.2)
Unrealized gains (losses) on commodity derivative contracts related to divestitures(1)(2)	$	—	$	1.8	$	(5.9)

Total realized and unrealized gains (losses) on commodity derivative contracts	$	232.7	$	(173.4)	$	90.4

_______________________

(1)During the year ended December 31, 2019, the unrealized gains (losses) on commodity derivative contracts related to the Haynesville Divestiture are 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.

(2)During the year ended December 31, 2018, the unrealized gains (losses) on commodity derivative contracts related to the Uinta Basin Divestiture are comprised of derivatives entered into in conjunction with the execution of the Uinta Basin purchase and sale agreement, which were subsequently novated to the buyer upon the closing of the sale in September 2018. Refer to Note 3 – Acquisitions and Divestitures for more information. The unrealized gains (losses) on commodity derivatives associated with the Uinta Basin Divestiture are offset by an equal amount recorded within "Net gain (loss) from asset sales, inclusive of restructuring costs" on the statements of operations.