Derivative Activities (Tables)

3 Months Ended

Mar. 31, 2018

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Volumes Hedged and Average Hedge Prices

The following table sets forth our commodity-based derivative volumes by year as of March 31, 2018, excluding our basis and freight swaps which are discussed separately below:

Period	Contract Type	Volume Hedged	Weighted Average Hedge Price
Natural Gas
2018	Swaps	1,001,127 Mmbtu/day		$ 2.96
2019	Swaps	324,658 Mmbtu/day		$ 2.82
October-December 2018	Calls	70,000 Mmbtu/day		$ 3.10 (1)
2018	Swaptions	160,000 Mmbtu/day		$ 3.07 (2)
2019	Swaptions	170,137 Mmbtu/day		$ 2.92 (2)
Crude Oil
2018	Swaps	8,748 bbls/day		$ 53.25
2019	Swaps	5,872 bbls/day		$ 53.73
January-June 2020	Swaps	250 bbls/day		$ 55.00
NGLs (C2-Ethane)
2018	Swaps	250 bbls/day		$ 0.29/gallon
NGLs (C3-Propane)
2018	Swaps	7,451 bbls/day		$ 0.68/gallon
NGLs (NC4-Normal Butane)
2018	Swaps	4,333 bbls/day		$ 0.81/gallon
NGLs (C5-Natural Gasoline)
2018	Swaps	4,904 bbls/day		$ 1.21/gallon
January-June 2019	Swaps	1,000 bbls/day		$ 1.24/gallon

⁽¹⁾ Weighted average deferred premium of $0.16.

⁽²⁾ Contains a combined derivative instrument consisting of a fixed price swap and a sold option to extend or double the volume. For April through December of 2018, we have swaps in place for 160,000 Mmbtu per day on which the counterparty can elect to extend the contract through December 2019 at a weighted average price of $3.07. We have swaps in place for 2019 for 140,000 Mmbtu/day on which the counterparty can elect to double the volume at a weighted average price of $2.93. We also have swaps in place for 2019 for 40,000 Mmbtu per day on which the counterparty can elect to extend the contract through December 2020 at a weighted average price of $2.85.

Combined Fair Value of Derivatives, by Consolidated Balance Sheets

The combined fair value of derivatives included in the accompanying consolidated balance sheets as of March 31, 2018 and December 31, 2017 is summarized below. The assets and liabilities are netted where derivatives with both gain and loss positions are held by a single counterparty and we have master netting arrangements. The tables below provide additional information relating to our master netting arrangements with our derivative counterparties (in thousands):

		March 31, 2018
		Gross Amounts of Recognized Assets		Gross Amounts Offset in the Balance Sheet			Net Amounts of Assets Presented in the Balance Sheet
Derivative assets:
Natural gas	–swaps	$	43,074	$	(13,076	)	$	29,998
	–swaptions		20,159		(13,927	)		6,232
	–basis swaps		3,150		(449	)		2,701
	–calls		—		(365	)		(365	)
Crude oil	–swaps		31		(9,497	)		(9,466	)
NGLs	–C2 ethane swaps		24		—			24
	–C3 propane swaps		500		(3,671	)		(3,171	)
	–C3 propane spread swaps		9,913		(9,913	)		—
	–NC4 butane swaps		10		(1,489	)		(1,479	)
	–C5 natural gasoline swaps		—		(1,342	)		(1,342	)
		$	76,861	$	(53,729	)	$	23,132

		March 31, 2018
		Gross Amounts of  Recognized (Liabilities)			Gross  Amounts Offset in the Balance Sheet		Net Amounts of (Liabilities) Presented in the Balance Sheet
Derivative (liabilities):
Natural gas	–swaps	$	(7,255	)	$	13,076	$	5,821
	–swaptions		(10,026	)		13,927		3,901
	–basis swaps		(990	)		449		(541	)
	–calls		(853	)		365		(488	)
Crude oil	–swaps		(34,097	)		9,497		(24,600	)
NGLs	–C3 propane swaps		(15,573	)		3,671		(11,902	)
	–C3 propane spread swaps		(11,286	)		9,914		(1,372	)
	–NC4 butane swaps		(4,093	)		1,488		(2,605	)
	–C5 natural gasoline swaps		(11,760	)		1,342		(10,418	)
Freight	–swaps		(34	)		—		(34	)
		$	(95,967	)	$	53,729	$	(42,238	)

		December 31, 2017
		Gross Amounts of Recognized Assets		Gross Amounts Offset in the Balance Sheet			Net Amounts of Assets Presented in the Balance Sheet
Derivative assets:
Natural gas	–swaps	$	87,794	$	(4,106	)	$	83,688
	–swaptions		18,817		(8,103	)		10,714
	–basis swaps		1,815		(6,673	)		(4,858	)
	–collars		3,039		(500	)		2,539
Crude oil	–swaps		2		(7,928	)		(7,926	)
NGLs	–C2 ethane swaps		57		—			57
	–C3 propane swaps		—		(12,556	)		(12,556	)
	–C3 propane collars		85		(85	)		—
	–C3 propane spread swaps		12,762		(12,762	)		—
	–NC4 butane swaps		—		(6,051	)		(6,051	)
	–C5 natural gasoline swaps		—		(6,727	)		(6,727	)
Freight	–swaps		276		(276	)		—
		$	124,647	$	(65,767	)	$	58,880

		December 31, 2017
		Gross Amounts of  Recognized (Liabilities)			Gross  Amounts Offset in the Balance Sheet		Net Amounts of (Liabilities) Presented  in the Balance Sheet
Derivative (liabilities):
Natural gas	–swaps	$	(216	)	$	4,106	$	3,890
	–swaptions		(12,283	)		8,103		(4,180	)
	–basis swaps		(9,580	)		6,673		(2,907	)
	–collars		—			500		500
Crude oil	–swaps		(24,726	)		7,928		(16,798	)
NGLs	–C3 propane swaps		(34,325	)		12,556		(21,769	)
	–C3 propane collars		—			85		85
	–C3 propane spread swaps		(13,983	)		12,762		(1,221	)
	–NC4 butane swaps		(11,188	)		6,051		(5,137	)
	–C5 natural gasoline swaps		(13,488	)		6,727		(6,761	)
Freight	–swaps		—			276		276
		$	(119,789	)	$	65,767	$	(54,022	)

Effects of Derivatives on Consolidated Statements of Operations

The effects of our derivatives on our consolidated statements of operations are summarized below (in thousands):

		Derivative Fair Value (Loss) Income
		Three Months Ended March 31,
		2018			2017
Commodity swaps	$	(16,536	)	$	166,752
Swaptions		3,599			—
Collars		(77	)		9,475
Puts		—			6,707
Calls		177			510
Basis swaps		(864	)		(17,972	)
Freight swaps		(308	)		85
Total	$	(14,009	)	$	165,557