| Open Commodity Positions |
At December 31, 2020, the Company had the following open commodity positions:
|
|
2021 |
|
|
2022 |
|
|
Natural Gas Derivative Contracts: |
|
|
|
|
|
|
|
|
Fixed price swap contracts: |
|
|
|
|
|
|
|
|
Average monthly volume (MMBtu) |
|
925,000 |
|
|
|
590,000 |
|
|
Weighted-average fixed price |
$ |
2.49 |
|
|
$ |
2.48 |
|
|
|
|
|
|
|
|
|
|
|
Collar contracts: |
|
|
|
|
|
|
|
|
Two-way collars |
|
|
|
|
|
|
|
|
Average monthly volume (MMBtu) |
|
925,000 |
|
|
|
595,000 |
|
|
Weighted-average floor price |
$ |
2.10 |
|
|
$ |
2.37 |
|
|
Weighted-average ceiling price |
$ |
3.28 |
|
|
$ |
3.09 |
|
|
|
|
|
|
|
|
|
|
|
Natural Gas Basis Swaps: |
|
|
|
|
|
|
|
|
PEPL basis swaps: |
|
|
|
|
|
|
|
|
Average monthly volume (MMBtu) |
|
500,000 |
|
|
|
— |
|
|
Weighted-average spread |
$ |
(0.40 |
) |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
Crude Oil Derivative Contracts: |
|
|
|
|
|
|
|
|
Fixed price swap contracts: |
|
|
|
|
|
|
|
|
Average monthly volume (Bbls) |
|
181,250 |
|
|
|
40,000 |
|
|
Weighted-average fixed price |
$ |
45.84 |
|
|
$ |
52.39 |
|
|
|
|
|
|
|
|
|
|
|
Collar contracts: |
|
|
|
|
|
|
|
|
Three-way collars |
|
|
|
|
|
|
|
|
Average monthly volume (Bbls) |
|
42,500 |
|
|
|
76,000 |
|
|
Weighted-average ceiling price |
$ |
50.61 |
|
|
$ |
53.18 |
|
|
Weighted-average floor price |
$ |
40.00 |
|
|
$ |
40.00 |
|
|
Weighted-average sub-floor price |
$ |
30.00 |
|
|
$ |
31.32 |
|
|
|
|
|
|
|
|
|
|
|
NGL Derivative Contracts: |
|
|
|
|
|
|
|
|
Fixed price swap contracts: |
|
|
|
|
|
|
|
|
Average monthly volume (Bbls) |
|
22,800 |
|
|
|
— |
|
|
Weighted-average fixed price |
$ |
24.25 |
|
|
$ |
— |
|
|
| Gross Fair Value of Derivative Instruments by Appropriate Balance Sheet |
The following table summarizes both: (i) the gross fair value of derivative instruments by the appropriate balance sheet classification even when the derivative instruments are subject to netting arrangements and qualify for net presentation in the balance sheet and (ii) the net recorded fair value as reflected on the balance sheet at December 31, 2020 and 2019. There was no cash collateral received or pledged associated with our derivative instruments since most of the counterparties, or certain of their affiliates, to our derivative contracts are lenders under our Credit Agreement (as defined below).
|
|
|
|
|
Asset Derivatives |
|
|
Liability
Derivatives |
|
|
Asset Derivatives |
|
|
Liability
Derivatives |
|
|
|
|
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|
Type |
|
Balance Sheet Location |
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
2019 |
|
|
|
|
|
|
(In thousands) |
|
|
Commodity contracts |
|
Short-term derivative instruments |
|
$ |
6,088 |
|
|
$ |
15,007 |
|
|
$ |
11,518 |
|
|
$ |
5,887 |
|
|
Interest rate swaps |
|
Short-term derivative instruments |
|
|
— |
|
|
|
1,905 |
|
|
|
248 |
|
|
|
253 |
|
|
Gross fair value |
|
|
|
|
6,088 |
|
|
|
16,912 |
|
|
|
11,766 |
|
|
|
6,140 |
|
|
Netting arrangements |
|
|
|
|
(6,088 |
) |
|
|
(6,088 |
) |
|
|
(5,887 |
) |
|
|
(5,887 |
) |
|
Net recorded fair value |
|
Short-term derivative instruments |
|
$ |
— |
|
|
$ |
10,824 |
|
|
$ |
5,879 |
|
|
$ |
253 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commodity contracts |
|
Long-term derivative instruments |
|
$ |
9,361 |
|
|
$ |
8,488 |
|
|
$ |
6,990 |
|
|
$ |
973 |
|
|
Interest rate swaps |
|
Long-term derivative instruments |
|
|
— |
|
|
|
847 |
|
|
|
347 |
|
|
|
305 |
|
|
Gross fair value |
|
|
|
|
9,361 |
|
|
|
9,335 |
|
|
|
7,337 |
|
|
|
1,278 |
|
|
Netting arrangements |
|
|
|
|
(8,488 |
) |
|
|
(8,488 |
) |
|
|
(973 |
) |
|
|
(973 |
) |
|
Net recorded fair value |
|
Long-term derivative instruments |
|
$ |
873 |
|
|
$ |
847 |
|
|
$ |
6,364 |
|
|
$ |
305 |
|
|
| Unrealized and Realized Gains and Losses Related to Derivative Instruments |
The following table details the gains and losses related to derivative instruments for the periods indicated (in thousands):
|
|
|
For the Year Ended |
|
|
|
Statements of |
December 31, |
|
|
|
Operations Location |
2020 |
|
|
2019 |
|
|
Commodity derivative contracts |
(Gain) loss on commodity derivatives |
$ |
(60,671 |
) |
|
$ |
6,700 |
|
|
(Gain) loss on interest rate derivatives |
Interest expense, net |
|
4,044 |
|
|
|
(224 |
) |
|