Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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 September 30, 2020.

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	10/01/2020 - 12/31/2020	879,000	$	48.03	$	66.05	$	6,752
Oil	01/01/2021 - 12/31/2021	4,200,000	$	36.07	$	47.33	(1,128)
Natural Gas	11/01/2020 - 12/31/2020	7,200,000	$	2.45	$	3.82	393
Natural Gas	01/01/2021 - 03/31/2021	36,600,000	$	2.44	$	3.71	(1,684)
Total open costless collar contracts							$	4,333

The following is a summary of the Company’s open swap contracts for oil at September 30, 2020.

Commodity	Calculation Period	Notional Quantity (Bbl)	Fixed Price ($/Bbl)		Fair Value of Asset (Liability) (thousands)
Oil	10/01/2020 - 12/31/2020	2,160,000	$	35.00	$	(12,061)
Oil	01/01/2021 - 12/31/2021	2,040,000	$	35.26	(14,663)
Total open swap contracts					$	(26,724)

The following is a summary of the Company’s open basis swap contracts for oil at September 30, 2020.

Commodity	Calculation Period	Notional Quantity (Bbl)	Fixed Price ($/Bbl)		Fair Value of Asset (Liability) (thousands)
Oil Basis	10/01/2020 - 12/31/2020	2,448,000	$	0.61	$	1,373
Oil Basis	01/01/2021 - 12/31/2021	8,400,000	$	0.87	5,341
Oil Basis	01/01/2022 - 12/31/2022	5,520,000	$	0.95	2,525
Total open basis swap contracts					$	9,239

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 September 30, 2020 and December 31, 2019 (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, 2020
Current assets	$	344,150	$	(338,541)	$	5,609
Other assets	227,685		(224,055)		3,630
Current liabilities	(355,669)		338,541		(17,128)
Long-term liabilities	(229,318)		224,055		(5,263)
Total	$	(13,152)	$	—	$	(13,152)
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)

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 September 30,				Nine Months Ended September 30,
Type of Instrument	Location in Condensed Consolidated Statement of Operations	2020		2019		2020		2019
Derivative Instrument
Oil	Revenues: Realized (loss) gain on derivatives	$	(5,406)	$	2,856	$	49,571	$	7,387
Natural Gas	Revenues: Realized gain on derivatives	—		490		—		394
Realized (loss) gain on derivatives		(5,406)		3,346		49,571		7,781
Oil	Revenues: Unrealized (loss) gain on derivatives	(9,843)		10,379		(7,980)		(29,699)
Natural Gas	Revenues: Unrealized loss on derivatives	(3,190)		(532)		(1,291)		(16)
Unrealized (loss) gain on derivatives		(13,033)		9,847		(9,271)		(29,715)
Total		$	(18,439)	$	13,193	$	40,300	$	(21,934)