DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2021

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, 2021.

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	10/01/2021 - 12/31/2021	2,370,000	$	42.06	$	55.15	$	(46,669)
Natural Gas	10/01/2021 - 12/31/2021	13,900,000	$	2.53	$	4.71	(24,169)
Oil	01/01/2022 - 12/31/2022	2,040,000	$	50.00	$	67.85	(14,402)
Natural Gas	01/01/2022 - 03/31/2022	8,250,000	$	2.70	$	6.33	(11,844)
Total open costless collar contracts							$	(97,084)

The following is a summary of the Company’s open swap contracts for oil at September 30, 2021.

Commodity	Calculation Period	Notional Quantity (Bbl)	Fixed Price ($/Bbl)		Fair Value of Asset (Liability) (thousands)
Oil	10/01/2021 - 12/31/2021	510,000	$	35.26	$	(19,999)
Total open swap contracts					$	(19,999)

The following is a summary of the Company’s open basis swap contracts for oil at September 30, 2021.

Commodity	Calculation Period	Notional Quantity (Bbl)	Fixed Price ($/Bbl)		Fair Value of Asset (Liability) (thousands)
Oil Basis	10/01/2021 - 12/31/2021	2,100,000	$	0.87	$	623
Oil Basis	01/01/2022 - 12/31/2022	5,520,000	$	0.95	3,393
Total open basis swap contracts					$	4,016

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, 2021 and December 31, 2020 (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, 2021
Current assets	$	303,891	$	(300,734)	$	3,157
Other assets	56,035		(55,176)		859
Current liabilities	(414,887)		300,734		(114,153)
Long-term liabilities	(58,106)		55,176		(2,930)
Total	$	(113,067)	$	—	$	(113,067)
December 31, 2020
Current assets	$	382,328	$	(375,601)	$	6,727
Other assets	150,194		(147,624)		2,570
Current liabilities	(420,787)		375,601		(45,186)
Long-term liabilities	(147,624)		147,624		—
Total	$	(35,889)	$	—	$	(35,889)

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	2021		2020		2021		2020
Derivative Instrument
Oil	Revenues: Realized (loss) gain on derivatives	$	(52,774)	$	(5,406)	$	(121,460)	$	49,571
Natural Gas	Revenues: Realized loss on derivatives	(4,645)		—		(4,483)		—
Realized (loss) gain on derivatives		(57,419)		(5,406)		(125,943)		49,571
Oil	Revenues: Unrealized gain (loss) on derivatives	38,961		(9,843)		(35,471)		(7,980)
Natural Gas	Revenues: Unrealized loss on derivatives	(29,912)		(3,190)		(41,707)		(1,291)
Unrealized gain (loss) on derivatives		9,049		(13,033)		(77,178)		(9,271)
Total		$	(48,370)	$	(18,439)	$	(203,121)	$	40,300