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Derivative Financial Instruments
 9 Months Ended
Sep. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE FINANCIAL INSTRUMENTS
At September 30, 2018, the Company had various costless collar, three-way costless collar and swap contracts open and in place to mitigate its exposure to oil and natural gas price volatility, each with a specific term (calculation period), notional quantity (volume hedged) and price floor and ceiling and fixed price for the swaps. Each contract is set to expire at varying times during 2018 and 2019.
The following is a summary of the Company’s open costless collar contracts for oil and natural gas at September 30, 2018.
Commodity
Calculation Period
 
Notional Quantity (Bbl or MMBtu)
 
Weighted Average Price Floor ($/Bbl or
$/MMBtu)
 
Weighted Average Price Ceiling ($/Bbl or
$/MMBtu)
 
Fair Value of Asset (Liability) (thousands)
Oil - WTI(1)
10/01/2018 - 12/31/2018
 
720,000

 
$
44.27

 
$
60.29

 
$
(9,240
)
Oil - WTI(1)
01/01/2019 - 12/31/2019
 
2,400,000

 
$
50.00

 
$
64.75

 
(21,287
)
Oil - LLS(2)
10/01/2018 - 12/31/2018
 
180,000

 
$
45.00

 
$
63.05

 
(2,973
)
Natural Gas
10/01/2018 - 12/31/2018
 
4,200,000

 
$
2.58

 
$
3.67

 
(18
)
Total open costless collar contracts
 
 
 
 
 
 
 
$
(33,518
)
_____________________
(1) NYMEX West Texas Intermediate crude oil.
(2) Argus Louisiana Light Sweet crude oil.
The following is a summary of the Company’s open three-way costless collar contracts for oil at September 30, 2018. Open three-way costless collars consist of a long put (the floor), a short call (the ceiling) and a long call that limits losses on the upside.
Commodity
Calculation Period
 
Notional Quantity (Bbl)
 
Weighted Average Price Floor ($/Bbl)
 
Weighted Average Price, Short Call ($/Bbl)
 
Weighted Average Price, Long Call ($/Bbl)
 
Fair Value of Asset (Liability) (thousands)
Oil - WTI(1)
10/01/2018 - 12/31/2018
 
480,000

 
$
50.08

 
$
63.50

 
$
66.68

 
$
(1,369
)
Total open three-way costless collar contracts
 
 
 
 
 
 
 
$
(1,369
)
_____________________
(1) NYMEX West Texas Intermediate crude oil.
The following is a summary of the Company’s open basis swap contracts for oil at September 30, 2018.
Commodity
Calculation Period
 
Notional Quantity (Bbl)
 
Fixed Price
($/Bbl)
 
Fair Value of
Asset
(Liability)
(thousands)
Oil Basis Swaps
10/01/2018 - 12/31/2018
 
1,305,000

 
$
(1.02
)
 
$
10,155

Total open swap contracts
 
 
 
 
 
 
$
10,155


At September 30, 2018, the Company had an aggregate liability for open derivative financial instruments of $24.7 million.
The Company’s derivative financial instruments are subject to master netting arrangements, and all but one counterparty allow for cross-commodity master netting provided the settlement dates for the commodities are the same. The Company does not present different types of commodities with the same counterparty on a net basis in its interim unaudited condensed consolidated balance sheets.

 The following table presents the gross asset and liability fair values of the Company’s commodity price derivative financial instruments and the location of these balances in the interim unaudited condensed consolidated balance sheets as of September 30, 2018 and December 31, 2017 (in thousands).
Derivative Instruments
Gross
amounts
recognized
 
Gross amounts
netted in the condensed
consolidated
balance sheets
 
Net amounts presented in the condensed
consolidated
balance sheets
September 30, 2018
 
 
 
 
 
   Current assets
$
49,723

 
$
(49,719
)
 
$
4

   Other assets
654

 
(654
)
 
—

   Current liabilities
(69,459
)
 
49,719

 
(19,740
)
   Long-term liabilities
(5,650
)
 
654

 
(4,996
)
      Total
$
(24,732
)
 
$
—

 
$
(24,732
)
December 31, 2017
 
 
 
 
 
   Current assets
$
131,092

 
$
(129,902
)
 
$
1,190

   Current liabilities
(146,331
)
 
129,902

 
(16,429
)
      Total
$
(15,239
)
 
$
—

 
$
(15,239
)

The following table summarizes the location and aggregate fair value of all derivative financial instruments recorded in the interim unaudited condensed consolidated statements of operations for the periods presented (in thousands). These derivative financial instruments are not designated as hedging instruments.
 
 
 
Three Months Ended 
 September 30,
 
Nine Months Ended 
 September 30,
Type of Instrument
Location in Condensed Consolidated Statement of Operations
 
2018
 
2017
 
2018
 
2017
Derivative Instrument
 
 
 
 
 
 
 
 
 
Oil
Revenues: Realized gain (loss) on derivatives
 
$
5,424

 
$
485

 
$
(1,373
)
 
$
(568
)
Natural Gas
Revenues: Realized gain (loss) on derivatives
 
—

 
—

 
51

 
(608
)
Realized gain (loss) on derivatives
 
5,424

 
485

 
(1,322
)
 
(1,176
)
Oil
Revenues: Unrealized (loss) gain on derivatives
 
(21,240
)
 
(12,479
)
 
(8,284
)
 
15,949

Natural Gas
Revenues: Unrealized (loss) gain on derivatives
 
(97
)
 
115

 
(1,208
)
 
5,508

NGL
Revenues: Unrealized loss on derivatives
 
—

 
(8
)
 
—

 
(8
)
Unrealized (loss) gain on derivatives
 
(21,337
)
 
(12,372
)
 
(9,492
)
 
21,449

Total
 
 
$
(15,913
)
 
$
(11,887
)
 
$
(10,814
)
 
$
20,273