Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2019

Open Option Contracts Written [Line Items]

Summary of gross asset balances of derivative instruments

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 June 30, 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
June 30, 2019
Current assets	$	12,671		$	(4,400	)	$	8,271
Other assets	4,710			(2,508		)	2,202
Current liabilities	(4,400		)	4,400			—
Long-term liabilities	(2,697		)	2,508			(189		)
Total	$	10,284		$	—		$	10,284
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

Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations

The following table summarizes the location and aggregate gain (loss) 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   June 30,					Six Months Ended   June 30,
Type of Instrument	Location in Condensed Consolidated Statement of Operations	2019		2018			2019			2018
Derivative Instrument
Oil	Revenues: Realized gain (loss) on derivatives	$	1,165	$	(2,488	)	$	4,531		$	(6,797	)
Natural Gas	Revenues: Realized (loss) gain on derivatives	—		—			(96		)	51
Realized gain (loss) on derivatives		1,165		(2,488		)	4,435			(6,746		)
Oil	Revenues: Unrealized gain (loss) on derivatives	5,365		1,829			(40,078		)	12,956
Natural Gas	Revenues: Unrealized gain (loss) on derivatives	792		(400		)	516			(1,111		)
Unrealized gain (loss) on derivatives		6,157		1,429			(39,562		)	11,845
Total		$	7,322	$	(1,059	)	$	(35,127	)	$	5,099

Open costless collar contracts

Open Option Contracts Written [Line Items]

Summary of contracts for oil and natural gas

The following is a summary of the Company’s open costless collar contracts for oil and natural gas at June 30, 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	07/01/2019 - 12/31/2019	3,900,000	$	50.26	$	70.94	$	3,354
Oil	01/01/2020 - 12/31/2020	2,640,000	$	48.50	$	69.50	4,555
Natural Gas	07/01/2019 - 12/31/2019	1,200,000	$	2.50	$	3.80	272
Total open costless collar contracts							$	8,181

The following is a summary of the Company’s open three-way costless collar contracts for oil and natural gas at June 30, 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	07/01/2019 - 12/31/2019	660,000	$	60.00	$	75.00	$	78.85	$	2,829
Natural Gas	07/01/2019 - 12/31/2019	2,400,000	$	2.50	$	3.00	$	3.24	528
Total open three-way costless collar contracts									$	3,357

The following is a summary of the Company’s open basis swap contracts for oil at June 30, 2019.

Commodity	Calculation Period	Notional Quantity (Bbl)	Fixed Price ($/Bbl)		Fair Value of Asset (Liability) (thousands)
Oil Basis Swaps	08/1/2019 - 12/31/2019	1,377,000	$	0.33	$	(39	)
Oil Basis Swaps	01/01/2020 - 12/31/2020	4,494,000	$	0.42	(1,215		)
Total open swap contracts					$	(1,254	)

At June 30, 2019, the Company had an aggregate asset value for open derivative financial instruments of $10.3 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.