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Derivative Financial Instruments
 12 Months Ended
Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE FINANCIAL INSTRUMENTS
From time to time, the Company uses derivative financial instruments to mitigate its exposure to commodity price risk associated with oil, natural gas and NGL prices. The Company records derivative financial instruments on its consolidated balance sheets as either assets or liabilities measured at fair value. The Company has elected not to apply hedge accounting for its existing derivative financial instruments. As a result, the Company recognizes the change in derivative fair value between reporting periods currently in its consolidated statements of operations as an unrealized gain or loss. The fair value of the Company’s derivative financial instruments is determined using industry-standard models that consider various inputs including: (i) quoted forward prices for commodities, (ii) time value of money and (iii) current market and contractual prices for the underlying instruments, as well as other relevant economic measures. The Company has evaluated and considered the credit standings of its counterparties in determining the fair value of its derivative financial instruments.
At December 31, 2019, the Company had various costless collar and swap contracts open and in place to mitigate its exposure to oil 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 2020, 2021 and 2022. The Company had no open contracts associated with natural gas or NGL prices at December 31, 2019.
 The following is a summary of the Company’s open costless collar contracts for oil at December 31, 2019.
 
 
 
 
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)
 
 
 
 
 
 
 
  Commodity  
 
     Calculation Period     
 
 
 
 
Oil
 
01/01/2020 - 12/31/2020
 
7,200,000

 
$
47.69

 
$
66.62

 
$
630

Total open costless collar contracts
 
 
 
 
 
 
 
$
630

The following is a summary of the Company’s open basis swaps contracts for oil at December 31, 2019.
Commodity
 
Calculation Period
 
Notional Quantity (Bbl or Gal)
 
Fixed Price
($/Bbl or $/Gal)
 
Fair Value of Asset (Liability) (thousands)
Oil Basis Swaps
 
01/01/2020 - 12/31/2020
 
9,774,000

 
$
0.61

 
$
(2,528
)
Oil Basis Swaps
 
01/01/2021 - 12/31/2021
 
6,480,000

 
$
0.82

 
$
(1,523
)
Oil Basis Swaps
 
01/01/2022 - 12/31/2022
 
3,600,000

 
0.90

 
$
(460
)
Total open swap contracts
 
 
 
 
 
 
 
$
(4,511
)

At December 31, 2019, the Company had an aggregate net liability value for open derivative financial instruments of $3.9 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 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 consolidated balance sheets as of December 31, 2019 and December 31, 2018 (in thousands).
Derivative Instruments
 
Gross amounts recognized
 
Gross amounts netted in the consolidated balance sheets
 
Net amounts presented in the consolidated balance sheets
December 31, 2019
 

 

 

Current assets
 
$
442,291

 
$
(442,291
)
 
$
—

Other assets
 
280,397

 
(280,397
)
 
—

Current liabilities
 
(444,188
)
 
442,291

 
(1,897
)
Long-term liabilities
 
(282,381
)
 
280,397

 
(1,984
)
   Total
 
$
(3,881
)
 
$
—

 
$
(3,881
)
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 consolidated statements of operations for the periods presented (in thousands). These derivative financial instruments are not designated as hedging instruments.
 
 
 
 
Year Ended December 31,
Type of Instrument
Location in Statements of Operations
2019
 
2018
 
2017
Derivative Instrument
 
 
 
 
 
 
 
 
Oil
 
Revenues: Realized gain (loss) on derivatives
 
$
9,026

 
$
3,741

 
$
(3,657
)
Natural Gas
 
Revenues: Realized gain (loss) on derivatives
 
456

 
(1,407
)
 
(608
)
NGLs
 
Revenues: Realized loss on derivatives
 
—

 
—

 
(56
)
Realized gain (loss) on derivatives
 
 
 
9,482

 
2,334

 
(4,321
)
Oil
 
Revenues: Unrealized (loss) gain on derivatives
 
(53,443
)
 
65,991

 
2,638

Natural Gas
 
Revenues: Unrealized (loss) gain on derivatives
 
(284
)
 
(906
)
 
7,077

Unrealized (loss) gain on derivatives
 
(53,727
)
 
65,085

 
9,715

Total
 
 
 
$
(44,245
)
 
$
67,419

 
$
5,394