XML 47 R28.htm IDEA: XBRL DOCUMENT v3.22.0.1
Commodity Derivative Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Fair Value and Classification of Derivative Instruments
The tables below summarize the fair value and classification 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: 
As of December 31, 2021
ClassificationBalance Sheet Location
Gross Fair
Value
Effect of
Counterparty Netting
Net Carrying
Value on
Balance Sheet
  (in thousands)
Assets:    
       Current assetCommodity derivative assets$— $— $— 
       Long-term assetDeferred charges and other long-term assets— — — 
          Total assets $— $— $— 
Liabilities:    
       Current liabilityCommodity derivative liabilities$51,544 $— $51,544 
       Long-term liabilityCommodity derivative liabilities2,001 — 2,001 
         Total liabilities $53,545 $— $53,545 
  
As of December 31, 2020
ClassificationBalance Sheet Location
Gross Fair
Value
Effect of
Counterparty Netting
Net Carrying
Value on
Balance Sheet
  (in thousands)
Assets:    
       Current assetCommodity derivative assets$6,362 $(5,213)$1,149 
       Long-term assetDeferred charges and other long-term assets— — — 
          Total assets $6,362 $(5,213)$1,149 
Liabilities:    
       Current liabilityCommodity derivative liabilities$24,531 $(5,213)$19,318 
       Long-term liabilityCommodity derivative liabilities1,848 — 1,848 
          Total liabilities $26,379 $(5,213)$21,166 
Changes in Fair Value of Company's Commodity Derivative Instruments Changes in the fair values of the Partnership’s derivative instruments (both assets and liabilities) are presented on a net basis in the accompanying consolidated statements of operations and consolidated statements of cash flows and consist of the following for the periods presented:
 For the year ended December 31,
Derivatives not designated as hedging instruments202120202019
 (in thousands)
Beginning fair value of commodity derivative instruments$(20,017)$15,221 $48,038 
Gain (loss) on oil derivative instruments(75,180)36,091 (34,728)
Gain (loss) on natural gas derivative instruments(71,294)10,020 29,773 
Net cash paid (received) on settlements of oil derivative instruments66,418 (56,487)(8,536)
Net cash paid (received) on settlements of natural gas derivative instruments46,528 (24,862)(19,326)
Net change in fair value of commodity derivative instruments(33,528)(35,238)(32,817)
Ending fair value of commodity derivative instruments$(53,545)$(20,017)$15,221 
Summary of Open Derivative Contracts
The Partnership had the following open derivative contracts for oil as of December 31, 2021:
 Volume (Bbl)Weighted Average Price (per Bbl)Range (per Bbl)
Period and Type of ContractLowHigh
Oil Swap Contracts:    
2021
Fourth quarter220,000 $38.97 $32.64 $46.50 
2022    
First quarter480,000 60.14 55.29 65.50 
Second quarter480,000 60.14 55.29 65.50 
Third quarter480,000 60.14 55.29 65.50 
Fourth quarter480,000 60.14 55.29 65.50 


The Partnership had the following open derivative contracts for natural gas as of December 31, 2021:
 Volume (MMBtu)Weighted Average Price (per MMBtu)Range (per MMBtu)
Period and Type of ContractLowHigh
Natural Gas Swap Contracts:    
2022
First quarter7,920,000 $2.98 $2.80 $3.15 
Second quarter8,000,000 2.99 2.80 3.15 
Third quarter8,080,000 2.99 2.80 3.15 
Fourth quarter8,080,000 2.99 2.80 3.15 
2023
First quarter1,800,000 3.28 3.28 3.29 
Second quarter1,820,000 3.28 3.28 3.29 
Third quarter1,840,000 3.28 3.28 3.29 
Fourth quarter1,840,000 3.28 3.28 3.29 
The Partnership entered into the following derivative contracts for oil subsequent to December 31, 2021.
 Volume (Bbl)Weighted Average Price (per Bbl)Range (per Bbl)
Period and Type of ContractLowHigh
Oil Swap Contracts:    
2022
First quarter60,000 $83.36 $82.80 $83.91 
Second quarter180,000 83.36 82.80 83.91 
Third quarter180,000 83.36 82.80 83.91 
Fourth quarter180,000 83.36 82.80 83.91 
2023    
First quarter180,000 80.40 78.00 82.80 
The Partnership entered into the following derivative contracts for natural gas subsequent to December 31, 2021.
 Volume (MMBtu)Weighted Average Price (per MMBtu)Range (per MMBtu)
Period and Type of ContractLowHigh
Natural Gas Swap Contracts:    
2022
First quarter310,000 $4.30 $4.30 $4.30 
Second quarter910,000 4.30 4.30 4.30 
Third quarter920,000 4.30 4.30 4.30 
Fourth quarter920,000 4.30 4.30 4.30 
2023
First quarter900,000 4.30 4.30 4.30