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Derivative Financial Instruments
 9 Months Ended
Sep. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE FINANCIAL INSTRUMENTS DERIVATIVE FINANCIAL INSTRUMENTS
At September 30, 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 September 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
 
10/01/2019 - 12/31/2019
 
1,950,000

 
$
50.26

 
$
70.94

 
$
3,242

Oil
 
01/01/2020 - 12/31/2020
 
4,860,000

 
$
48.50

 
$
67.44

 
15,657

Natural Gas
 
10/01/2019 - 12/31/2019
 
600,000

 
$
2.50

 
$
3.80

 
91

Total open costless collar contracts
 
 
 
 
 
 
 
$
18,990


The following is a summary of the Company’s open three-way costless collar contracts for oil and natural gas at September 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
 
10/01/2019 - 12/31/2019
 
330,000

 
$
60.00

 
$
75.00

 
$
78.85

 
$
2,216

Natural Gas
 
10/01/2019 - 12/31/2019
 
1,200,000

 
$
2.50

 
$
3.00

 
$
3.24

 
177

Total open three-way costless collar contracts
 
 
 
 
 
 
 
$
2,393

The following is a summary of the Company’s open basis swap contracts for oil at September 30, 2019.
Commodity
 
Calculation Period
 
Notional Quantity (Bbl)
 
Fixed Price
($/Bbl)
 
Fair Value of
Asset
(Liability)
(thousands)
Oil Basis Swaps
 
10/01/2019 - 12/31/2019
 
1,308,000

 
$
0.47

 
$
(248
)
Oil Basis Swaps
 
01/01/2020 - 12/31/2020
 
4,494,000

 
$
0.42

 
(864
)
Oil Basis Swaps
 
01/01/2021 - 12/31/2021
 
2,880,000

 
$
0.65

 
(140
)
Total open swap contracts
 
 
 
 
 
 
 
$
(1,252
)

At September 30, 2019, the Company had an aggregate asset value for open derivative financial instruments of $20.1 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 September 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
September 30, 2019
 
 
 
 
 
 
Current assets
 
$
19,405

 
$
(3,924
)
 
$
15,481

Other assets
 
6,365

 
(1,715
)
 
4,650

Current liabilities
 
(3,924
)
 
3,924

 
—

Long-term liabilities
 
(1,715
)
 
1,715

 
—

Total
 
$
20,131

 
$
—

 
$
20,131

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 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 
 September 30,
 
Nine Months Ended 
 September 30,
Type of Instrument
 
Location in Condensed Consolidated Statement of Operations
 
2019
 
2018
 
2019
 
2018
Derivative Instrument
 
 
 
 
 
 
 
 
 
 
Oil
 
Revenues: Realized gain (loss) on derivatives
 
$
2,856

 
$
5,424

 
$
7,387

 
$
(1,373
)
Natural Gas
 
Revenues: Realized gain on derivatives
 
490

 
—

 
394

 
51

Realized gain (loss) on derivatives
 
3,346

 
5,424

 
7,781

 
(1,322
)
Oil
 
Revenues: Unrealized gain (loss) on derivatives
 
10,379

 
(21,240
)
 
(29,699
)
 
(8,284
)
Natural Gas
 
Revenues: Unrealized loss on derivatives
 
(532
)
 
(97
)
 
(16
)
 
(1,208
)
Unrealized gain (loss) on derivatives
 
9,847

 
(21,337
)
 
(29,715
)
 
(9,492
)
Total
 
 
 
$
13,193

 
$
(15,913
)
 
$
(21,934
)
 
$
(10,814
)