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Commodity Derivative Financial Instruments
 9 Months Ended
Sep. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Commodity Derivatives And Financial Instruments
NOTE 4 - COMMODITY DERIVATIVE FINANCIAL INSTRUMENTS
The Partnership’s ongoing operations expose it to changes in the market price for oil and natural gas. To mitigate the inherent commodity price risk associated with its operations, the Partnership uses oil and natural gas commodity derivative financial instruments. From time to time, such instruments may include variable-to-fixed-price swaps, costless collars, fixed-price contracts and other contractual arrangements. The Partnership enters into oil and natural gas derivative contracts that contain netting arrangements with each counterparty. The Partnership does not enter into derivative instruments for speculative purposes.
As of September 30, 2020, the Partnership’s open derivative contracts consisted of fixed-price swap contracts and costless collar contracts. A fixed-price swap contract between the Partnership and the counterparty specifies a fixed commodity price and a future settlement date. A costless collar contract between the Partnership and the counterparty specifies a floor and a ceiling commodity price and a future settlement date. The Partnership has not designated any of its contracts as fair value or cash flow hedges. Accordingly, the changes in the fair value of the contracts are included in the consolidated statement of operations in the period of the change. All derivative gains and losses from the Partnership’s derivative contracts have been recognized in revenue in the Partnership's accompanying consolidated statements of operations. Derivative instruments that have not yet been settled in cash are reflected as either derivative assets or liabilities in the Partnership’s accompanying consolidated balance sheets as of September 30, 2020 and December 31, 2019. See Note 5 - Fair Value Measurements for further discussion.    
The Partnership's derivative contracts expose it to credit risk in the event of nonperformance by counterparties that may adversely impact the fair value of the Partnership's commodity derivative assets. While the Partnership does not require its derivative contract counterparties to post collateral, the Partnership does evaluate the credit standing of such counterparties as deemed appropriate. This evaluation includes reviewing a counterparty’s credit rating and latest financial information. As of September 30, 2020, the Partnership had nine counterparties, all of which are rated Baa1 or better by Moody’s and are lenders under the Credit Facility.
The tables below summarize the fair values and classifications of the Partnership’s derivative instruments, as well as the gross recognized derivative assets, liabilities, and amounts offset in the consolidated balance sheets as of each date:
September 30, 2020
ClassificationBalance Sheet LocationGross
Fair Value		Effect of Counterparty NettingNet Carrying Value on Balance Sheet
  (in thousands)
Assets:
    
Current asset
Commodity derivative assets$19,935 $(11,366)$8,569 
Long-term asset
Deferred charges and other long-term assets— — — 
 Total assets
 $19,935 $(11,366)$8,569 
Liabilities:
    
Current liability
Commodity derivative liabilities$15,028 $(11,366)$3,662 
Long-term liability
Commodity derivative liabilities6,729 — 6,729 
Total liabilities
 $21,757 $(11,366)$10,391 

December 31, 2019
ClassificationBalance Sheet LocationGross
Fair Value		Effect of Counterparty NettingNet Carrying Value on Balance Sheet
  (in thousands)
Assets:
    
Current asset
Commodity derivative assets$19,028 $(4,238)$14,790 
Long-term asset
Deferred charges and other long-term assets713 (105)608 
 Total assets
 $19,741 $(4,343)$15,398 
Liabilities:
    
Current liability
Commodity derivative liabilities$4,397 $(4,238)$159 
Long-term liability
Commodity derivative liabilities123 (105)18 
Total liabilities
 $4,520 $(4,343)$177 
Changes in the fair values of the Partnership’s derivative instruments (both assets and liabilities) are presented on a net basis in the accompanying consolidated statements of operations and consolidated statements of cash flows and consist of the following for the periods presented:
 Three Months Ended September 30,Nine Months Ended September 30,
Derivatives not designated as hedging instruments2020201920202019
(in thousands)
Beginning fair value of commodity derivative instruments$40,552 $31,368 $15,221 $48,038 
Gain (loss) on oil derivative instruments(5,864)18,132 50,300 (13,224)
Gain (loss) on natural gas derivative instruments(15,222)6,158 (549)25,518 
Net cash paid (received) on settlements of oil derivative instruments(13,954)(2,938)(42,270)(5,748)
Net cash paid (received) on settlements of natural gas derivative instruments(7,334)(10,708)(24,524)(12,572)
Net change in fair value of commodity derivative instruments(42,374)10,644 (17,043)(6,026)
Ending fair value of commodity derivative instruments$(1,822)$42,012 $(1,822)$42,012 
The Partnership had the following open derivative contracts for oil as of September 30, 2020:
 Weighted Average Price (Per Bbl)Range (Per Bbl)
Period and Type of ContractVolume (Bbl)LowHigh
Oil Swap Contracts:    
2020    
Third Quarter210,000 $57.32 $54.92 $58.65 
Fourth Quarter630,000 57.32 54.92 58.65 
2021
First Quarter480,000 $36.18 $32.64 $37.92 
Second Quarter480,000 36.18 32.64 37.92 
Third Quarter480,000 36.18 32.64 37.92 
Fourth Quarter480,000 36.18 32.64 37.92 

Weighted Average
Floor Price (Per Bbl)		Weighted Average
Ceiling Price (Per Bbl)
Period and Type of ContractVolume (Bbl)
Oil Collar Contracts:
2020
Third Quarter70,000 $56.43 $67.14 
Fourth Quarter210,000 56.43 67.14 
The Partnership had the following open derivative contracts for natural gas as of September 30, 2020:
 Weighted Average Price (Per MMBtu)Range (Per MMBtu)
Period and Type of ContractVolume (MMBtu)LowHigh
Natural Gas Swap Contracts:    
2020    
Fourth Quarter10,120,000 $2.69 $2.55 $2.74 
2021
First Quarter9,000,000 $2.65 $2.52 $2.85 
Second Quarter9,100,000 2.65 2.52 2.85 
Third Quarter9,200,000 2.65 2.52 2.85 
Fourth Quarter9,200,000 2.65 2.52 2.85 
The Partnership entered into the following derivative contracts for natural gas subsequent to September 30, 2020:
 Weighted Average Price (Per MMBtu)Range (Per MMBtu)
Period and Type of ContractVolume (MMBtu)LowHigh
Natural Gas Swap Contracts:    
2021
First Quarter900,000 $3.08 $3.08 $3.08 
Second Quarter910,000 3.08 3.08 3.08 
Third Quarter920,000 3.08 3.08 3.08 
Fourth Quarter920,000 3.08 3.08 3.08