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DERIVATIVES (Tables)
 12 Months Ended
Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of derivative instruments
As of December 31, 2020, the Company had the following outstanding derivative contracts. When aggregating multiple contracts, the weighted average contract price is disclosed:

SwapsCollars
Settlement MonthSettlement YearType of ContractBbls/Mmbtu/Gallons Per DayIndexWeighted Average DifferentialWeighted Average Fixed PriceWeighted Average Floor PriceWeighted Average Ceiling Price
OIL
Jan. - Mar.2021Costless Collars37,000WTI Cushing$—$—$34.95$45.17
Apr. - June2021Costless Collars15,000WTI Cushing$—$—$33.00$45.33
July - Dec.2021Costless Collars10,000WTI Cushing$—$—$30.00$43.05
Jan. - June2021
Roll Hedge(2)
12,000WTI$(0.07)$—$—$—
Jan. - Mar.2021Swaps5,000WTI$—$45.46$—$—
Apr. - June2021Swaps2,000WTI$—$47.35$—$—
Jan. - June2021Basis Swap8,000
WTI Midland(1)
$0.52$—$—$—
Jan. - Dec.2021Swaps5,000WTI Houston Argus$—$37.78$—$—
Jan. - Dec.2021Swaps5,000Brent$—$41.62$—$—
Jan. - Mar.2021Costless Collars82,000Brent$—$—$39.04$48.51
Apr. - June2021Costless Collars80,000Brent$—$—$39.26$48.62
Jul. - Dec.2021Costless Collars60,000Brent$—$—$39.43$48.12
Jul. - Dec.2021Swaptions5,000Brent$—$51.00$—$—
NATURAL GAS
Jan. - Dec.2021Swaps200,000Henry Hub$—$2.65$—$—
Jan. - Dec.2021Basis Swaps230,000
Waha Hub(1)
$(0.69)$—$—$—
Jan. - Dec.2022Basis Swaps100,000
Waha Hub(1)
$(0.42)$—$—$—
(1) The Company has fixed price basis swaps for the spread between the Cushing crude oil price and the Midland WTI crude oil price as well as the spread between the Henry Hub natural gas price and the Waha Hub natural gas price. The weighted average differential represents the amount of reduction to Cushing, Oklahoma, oil price and the Waha Hub natural gas price for the notional volumes covered by the basis swap contracts.
(2) The Company has rolling hedge basis swaps for the differential between the NYMEX prices between the calendar month average and the physical crude oil delivery month. The weighted average differential represents the amount of reduction to Cushing, Oklahoma, oil price for the notional volumes covered by the rolling hedge basis swap contracts.

Settlement MonthSettlement YearType of ContractBbls/Mcf Per DayIndexPut Price
OIL
Jan. - Dec.2022Option5,000Brent$35.00
The Company currently uses interest rate swaps to reduce the Company’s exposure to variable rate interest payments associated with the Company’s revolving credit facility. The interest rate swaps have not been designated as hedging instruments and as a result, the Company recognizes all changes in fair value immediately in earnings.

TypeEffective DateContractual Termination DateNotional Amount (in millions)Interest Rate
Interest Rate SwapDecember 31, 2024December 31, 2054$250 1.692 %
Interest Rate SwapDecember 31, 2024December 31, 2054$250 1.8361 %
Interest Rate SwapDecember 31, 2024December 31, 2054$250 1.852 %
Interest Rate SwapDecember 31, 2024December 31, 2054$250 1.722 %
SwapsCollars
Settlement MonthSettlement YearType of ContractBbls/Mmbtu Per DayIndexWeighted Average DifferentialWeighted Average Fixed PriceWeighted Average Floor PriceWeighted Average Ceiling Price
OIL
July - Sep.2021Costless Collar2,000WTI$—$—$45.00$52.30
Oct. - Dec.2021Costless Collar9,000WTI$—$—$45.00$59.22
July - Sep.2021Costless Collar5,000WTI Houston Argus$—$—$45.00$57.90
Apr. - Sep.2021Costless Collar2,000IPE Brent$—$—$45.00$57.72
Oct. - Dec.2021Costless Collar4,000IPE Brent$—$—$45.00$60.64
Mar. - Dec.2021
Roll Hedge(2)
25,000WTI$0.32$—$—$—
Mar. - Dec.2021Swap20,000Henry Hub$—$2.95$—$—
Jan. - June2021Basis Swap15,000
WTI Midland(1)
$0.95$—$—$—
July - Dec.2021Basis Swap18,000
WTI Midland(1)
$0.93$—$—$—
Jan. - Mar.2022Costless Collar18,000IPE Brent$—$—$45.00$61.35
Apr. - Dec.2022Costless Collar2,000IPE Brent$—$—$45.00$60.00
NATURAL GAS
Apr. - Dec.2021Basis Swap20,000
Waha Hub(1)
$(0.255)$—$—$—
Jan. - Dec.2022Basis Swap30,000
Waha Hub(1)
$(0.34)$—$—$—
NATURAL GAS LIQUIDS
Feb. - Dec.2021Swap84,000Mont Belvieu$—$0.70$—$—
(1) The Company has fixed price basis swaps for the spread between the WTI Midland crude oil price and the NYMEX WTI crude oil price as well as the spread between the Waha Hub natural gas price and the Henry Hub natural gas price. The weighted average differential represents the amount of reduction to Cushing, Oklahoma oil price and the Waha Hub natural gas price for the notional volumes covered by the basis swap contracts.
(2) The Company has rolling hedge basis swaps for the differential between the NYMEX prices between the calendar month average and the physical crude oil delivery month. The weighted average differential represents the amount of reduction to Cushing, Oklahoma oil price for the notional volumes covered by the rolling hedge basis swap contracts.

Interest Rate Swaps

The following table presents the interest rate swap contracts terminated by the Company between January 1, 2021 and February 19, 2021:

TypeEffective DateContractual Termination DateNotional Amount (in millions)Interest Rate
Interest Rate SwapDecember 31, 2024December 31, 2054$250 1.8361 %
Interest Rate SwapDecember 31, 2024December 31, 2054$250 1.852 %
Summary of derivative contract gains and losses included in the consolidated statements of operations The following table summarizes the gains and losses on derivative instruments included in the consolidated statements of operations:
Year Ended December 31,
202020192018
(in millions)
Gain (loss) on derivative instruments, net
Commodity contracts$(32)$(151)$101 
Interest rate swaps(49)43 — 
Total$(81)$(108)$101 
Net cash received (paid) on settlements
Commodity contracts(1)
250 37 (121)
Interest rate swaps(2)
— 43 — 
Total$250 $80 $(121)
(1)The year ended December 31, 2020 includes cash received on commodity contracts terminated prior to their contractual maturity of $17 million.
(2)The year ended December 31, 2019 includes cash received on interest rate swap contracts terminated prior to their contractual maturity of $43 million.