DERIVATIVE FINANCIAL INSTRUMENTS

At March 31, 2019, 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 2019 and 2020.

The following is a summary of the Company’s open costless collar contracts for oil and natural gas at March 31, 2019.



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	04/01/2019 - 12/31/2019	4,860,000	$	51.16	$	71.67	$	1,446
Natural Gas	04/01/2019 - 12/31/2019	1,800,000	$	2.50	$	3.80	36
Total open costless collar contracts							$	1,482

The following is a summary of the Company’s open three-way costless collar contracts for oil and natural gas at March 31, 2019. 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 or MMBtu)	Weighted Average Price Floor ($/Bbl or $/MMBtu)		Weighted Average Price, Short Call ($/Bbl or $/MMBtu)		Weighted Average Price, Long Call ($/Bbl or $/MMBtu)		Fair Value of Asset (Liability) (thousands)
Oil	04/01/2019 - 12/31/2019	990,000	$	60.00	$	75.00	$	78.85	$	3,298
Natural Gas	04/01/2019 - 12/31/2019	3,600,000	$	2.50	$	3.00	$	3.24	(28		)
Total open three-way costless collar contracts									$	3,270

The following is a summary of the Company’s open basis swap contracts for oil at March 31, 2019.



Commodity	Calculation Period	Notional Quantity (Bbl)	Fixed Price ($/Bbl)			Fair Value of Asset (Liability) (thousands)
Oil Basis Swaps	01/01/2020 - 12/31/2020	1,200,000	$	(0.15	)	$	(625	)
Total open swap contracts						$	(625	)

At March 31, 2019, the Company had an aggregate asset value for open derivative financial instruments of $4.1 million.

The Company’s derivative financial instruments are subject to master netting arrangements, and the Company’s counterparties 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 March 31, 2019 and December 31, 2018 (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
March 31, 2019
Current assets	$	9,368		$	(4,573	)	$	4,795
Current liabilities	(4,734		)	4,573			(161		)
Long-term liabilities	(507		)	—			(507		)
Total	$	4,127		$	—		$	4,127
December 31, 2018
Current assets	$	53,136		$	(3,207	)	$	49,929
Current liabilities	(3,207		)	3,207			—
Long-term liabilities	(83		)	—			(83		)
Total	$	49,846		$	—		$	49,846

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 March 31,
Type of Instrument	Location in Condensed Consolidated Statement of Operations	2019			2018
Derivative Instrument
Oil	Revenues: Realized gain (loss) on derivatives	$	3,366		$	(4,309	)
Natural Gas	Revenues: Realized (loss) gain on derivatives	(96		)	51
Realized gain (loss) on derivatives		3,270			(4,258		)
Oil	Revenues: Unrealized (loss) gain on derivatives	(45,444		)	11,127
Natural Gas	Revenues: Unrealized loss on derivatives	(275		)	(711		)
Unrealized (loss) gain on derivatives		(45,719		)	10,416
Total		$	(42,449	)	$	6,158