| Summary of Interest Rate Swap Agreements |
As of June 30, 2023, the Company had the following outstanding interest rate swaps that were designated and qualified as cash flow hedges.
| | | | | | | | | | | | | | | | Range of Fixed Rates | | Weighted Average Fixed Rate | | Notional Amount Outstanding | 0.62% to 0.85% | | 0.66% | | $ | 212,850 | | | | | | |
The effect of these derivative instruments on the Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022 is as follows:
| | | | | | | | | | | | | | | | | | | | | | | Fair Value of Derivative Assets/(Liabilities) | | | Balance Sheet Location | | June 30, 2023 | | December 31, 2022 | | Derivatives designated as hedging instruments | | | | | | | | Interest rate contracts - interest rate swaps | | | | | | | | | Fair value of derivative assets - current | | $ | 8,434 | | | $ | 8,479 | | | | Fair value of derivative assets - noncurrent | | 6,331 | | | 8,184 | | | | | | $ | 14,765 | | | $ | 16,663 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
A summary of outstanding FFAs as of June 30, 2023 is as follows: | | | | | | | | | | | | | | | | FFA Period | | Average FFA Contract Price(1) | | Number of Days Hedged | | | | | | | | | | | | Quarter ending September 30, 2023 - Buy Positions | | $ | 14,289 | | | (720) | | | Quarter ending September 30, 2023 - Sell Positions | | $ | 14,976 | | | 765 | | Quarter ending December 31, 2023 - Buy Positions | | $ | 13,896 | | | (705) | | | Quarter ending December 31, 2023 - Sell Positions | | $ | 14,855 | | | 795 | | | | | |
| | | | | | | (1) | Presented in whole dollars. |
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| Schedule of Non-Designated Derivative Instruments Effect on Statement of Operations |
The effect of these instruments on the Condensed Consolidated Statements of Operations and the Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2023 and 2022 is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Derivatives in Cash Flow Hedging Relationships | | Gain/(Loss) Recognized in Other Comprehensive Income/(Loss) | | Location of Gain/(Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings | | Gain/(Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings | | Three Months Ended | | Six Months Ended | | | Three Months Ended | | Six Months Ended | | June 30, 2023 | | June 30, 2022 | | June 30, 2023 | | June 30, 2022 | | | June 30, 2023 | | June 30, 2022 | | June 30, 2023 | | June 30, 2022 | | Interest rate contracts | | | | | | | | | | | | | | | | | | | | Interest rate swaps | | $ | 3,319 | | | $ | 2,252 | | | $ | 2,721 | | | $ | 10,536 | | | Interest expense | | $ | 2,284 | | | $ | 82 | | | $ | 4,545 | | | $ | (315) | | | | | | | | | | | | | | | | | | | | |
The effect of these derivative instruments on the Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022 is as follows:
| | | | | | | | | | | | | | | | | | | | | | | Fair Value of Derivative Assets/(Liabilities) | | | Balance Sheet Location | | June 30, 2023 | | December 31, 2022 | | Derivatives not designated as hedging instruments | | | | | | | | Commodity contracts - FFAs | | | | | | | | | Fair value of derivative assets - current | | $ | 1,380 | | | $ | — | | | | | | | | | | | | | $ | 1,380 | | | $ | — | | | | | | | | | | | Fair value of derivative liabilities - current | | $ | (8) | | | $ | (70) | | | | | | | | | | | | | $ | (8) | | | $ | (70) | | | | | | | | | | Commodity contracts - bunker swaps | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fair value of derivative liabilities - current | | $ | — | | | $ | (93) | | | | | | | | | | | | | $ | — | | | $ | (93) | | | | | | | | |
The effect of these instruments on the Condensed Consolidated Statements of Operations, which is presented in Realized and unrealized gain on derivative instruments, net for the three and six months ended June 30, 2023 and 2022 is as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Gain)/Loss Recognized in Earnings | | | Three Months Ended | | Six Months Ended | | Derivatives not designated as hedging instruments | | June 30, 2023 | | June 30, 2022 | | June 30, 2023 | | June 30, 2022 | | Commodity contracts | | | | | | | | | | FFAs - realized (gain)/loss | | $ | (900) | | | $ | 5,572 | | | $ | (757) | | | $ | 3,799 | | | Bunker swaps - realized loss/(gain) | | 130 | | | (2,620) | | | 120 | | | (4,394) | | | | (770) | | | 2,952 | | | (637) | | | (595) | | | FFAs - unrealized (gain)/loss | | (1,933) | | | (13,133) | | | (1,700) | | | 1,119 | | | Bunker swaps - unrealized (gain)/loss | | (88) | | | 291 | | | (85) | | | (2,512) | | | | (2,021) | | | (12,842) | | | (1,785) | | | (1,393) | | | Realized and unrealized gain on derivative instruments, net | | $ | (2,791) | | | $ | (9,890) | | | $ | (2,422) | | | $ | (1,988) | | | | | | | | | | |
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| Schedule of Accumulated Other Comprehensive Income (Loss) |
Further information on the effect of these instruments on the Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2023 and 2022 is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, 2023 | | June 30, 2022 | | June 30, 2023 | | June 30, 2022 | | Accumulated other comprehensive income, beginning balance | | $ | 13,690 | | | $ | 10,567 | | | $ | 16,549 | | | $ | 1,886 | | | Gain recognized in Other Comprehensive Income/(Loss) | | 3,319 | | | 2,252 | | | 2,721 | | | 10,536 | | | (Gain)/loss reclassified from Other Comprehensive Income/(Loss) into earnings | | (2,284) | | | (82) | | | (4,545) | | | 315 | | | Accumulated other comprehensive income, ending balance | | $ | 14,725 | | | $ | 12,737 | | | $ | 14,725 | | | $ | 12,737 | |
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