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DERIVATIVES
 12 Months Ended
Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES DERIVATIVES
The Company enters into commodity derivative contracts to mitigate a portion of its exposure to potentially adverse market changes in commodity prices and the associated impact on cash flows. All contracts are entered into for other-than-trading purposes. The Company’s derivatives include swaps, collars, and puts for oil and natural gas, and none of the derivative instruments qualify as having hedging relationships.
In a typical commodity swap agreement, if the agreed upon published third-party index price is lower than the swap strike price, the Company receives the difference between the index price and the agreed upon swap strike price. If the index price is higher than the swap strike price, the Company pays the difference.
A put gives the owner the right to sell the underlying commodity at a set price over the term of the contract. If the index settlement price is higher than the put fixed price, the put will expire worthless. If the settlement price is lower than the put fixed price, the Company will exercise the put and receive the difference between the settlement price and the put fixed price.
A cashless collar arrangement establishes a floor and ceiling price on future oil and gas production. When the settlement price is above the ceiling price, the Company pays the difference between the settlement price and the ceiling price.
When the settlement price is below the floor price, the Company receives the difference between the settlement price and floor price. In the event that the settlement price is between the ceiling and the floor, no payment or receipt occurs.
A basis swap arrangement guarantees a price differential from a specified delivery point to an agreed upon reference point. The Company receives the difference between the price differential and the stated terms, if the price differential is greater than the stated terms. The Company pays the difference between the price differential and the stated terms, if the stated terms are greater than the price differential.
As of December 31, 2020, the Company had entered into the following commodity derivative contracts:
Crude Oil
(NYMEX WTI)		Natural Gas
(NYMEX Henry Hub)		Natural Gas
(CIG Basis)		Natural Gas
(CIG)
Bbls/dayWeighted Avg. Price per BblMMBtu/dayWeighted Avg. Price per MMBtuMMBtu/dayWeighted Avg. Price per MMBtuMMBtu/dayWeighted Avg. Price per MMBtu
1Q21
Cashless Collar3,000 
$43.67/$53.58
30,000 
$2.25/$2.57
— —— —
Swap5,000 $54.48— —20,000 $0.43— —
2Q21
Cashless Collar2,500 
$34.40/$49.82
20,000 
$2.25/$2.52
— —— —
Swap4,000 $54.13— —20,000 $0.43— —
3Q21
Cashless Collar3,000 
$30.00/$50.62
20,000 
$2.25/$2.52
— —20,000 
$2.15/$2.75
Swap2,500 $54.45— —20,000 $0.43— —
4Q21
Cashless Collar4,000 
$30.63/$50.34
20,000 
$2.25/$2.52
— —20,000 
$2.15/$2.75
Swap1,000 $55.20— —20,000 $0.43— —
1Q22
Cashless Collar3,500 
$31.43/$51.00
— —— —20,000 
$2.15/$2.75
2Q22
Cashless Collar2,000 
$32.50/$54.85
— —— —20,000 
$2.15/$2.75
3Q22
Cashless Collar1,000 
$35.00/$54.88
— —— —— —
4Q22
Cashless Collar500 
$35.00/$55.00
— —— —— —

As of the filing date of this report, the Company had entered into the following commodity derivative contracts:
Crude Oil
(NYMEX WTI)		Natural Gas
(NYMEX Henry Hub)		Natural Gas
(CIG Basis)		Natural Gas
(CIG)
Bbls/dayWeighted Avg. Price per BblMMBtu/dayWeighted Avg. Price per MMBtuMMBtu/dayWeighted Avg. Price per MMBtuMMBtu/dayWeighted Avg. Price per MMBtu
1Q21
Cashless Collar3,000 
$43.67/$53.58
30,000 
$2.25/$2.57
— —— —
Swap5,000 $54.48— —20,000 $0.43— —
2Q21
Cashless Collar2,500 
$34.40/$49.82
20,000 
$2.25/$2.52
— —— —
Swap4,000 $54.13— —20,000 $0.43— —
3Q21
Cashless Collar3,000 
$30.00/$50.62
20,000 
$2.25/$2.52
— —20,000 
$2.15/$2.75
Swap2,500 $54.45— —20,000 $0.43— —
4Q21
Cashless Collar4,000 
$30.63/$50.34
20,000 
$2.25/$2.52
— —20,000 
$2.15/$2.75
Swap1,000 $55.20— —20,000 $0.43— —
1Q22
Cashless Collar4,000 
$31.88/$51.83
— —— —20,000 
$2.15/$2.75
2Q22
Cashless Collar2,500 
$33.00/$55.41
— —— —20,000 
$2.15/$2.75
3Q22
Cashless Collar1,000 
$35.00/$54.88
— —— —— —
4Q22
Cashless Collar500 
$35.00/$55.00
— —— —— —
Derivative Assets and Liabilities Fair Value 
The Company’s commodity derivatives are measured at fair value and are included in the accompanying balance sheets as derivative assets and liabilities. The following table contains a summary of all the Company’s derivative positions reported on the accompanying balance sheets as of December 31, 2020 and 2019 (in thousands): 
As of December 31,
20202019
Derivative Assets: 
Commodity contracts - current$7,482 $2,884 
Commodity contracts - noncurrent— 121 
Derivative Liabilities:  
Commodity contracts - current(6,402)(6,390)
Commodity contracts - long-term(1,330)(921)
Total derivative liabilities, net$(250)$(4,306)

The following table summarizes the components of the derivative gain (loss) presented on the accompanying statements of operations for the periods below (in thousands):
 Year Ended December 31,
 202020192018
Derivative cash settlement gain (loss): 
Oil contracts$50,133 $1,185 $(17,700)
Gas contracts(727)506 (460)
Total derivative cash settlement gain (loss)(1)
49,406 1,691 (18,160)
Change in fair value gain (loss)4,056 (38,836)48,431 
Total derivative gain (loss)(1)
$53,462 $(37,145)$30,271 
___________________________
(1)Total derivative gain (loss) and total derivative cash settlement gain (loss) for each of the periods presented above is reported in the derivative (gain) loss line item and derivative cash settlements line item in the accompanying statements of cash flows, within the cash flows from operating activities.