| Derivative Volumes Hedged and Average Hedge Prices |
The following table sets forth our commodity-based derivative volumes by year as of September 30, 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 |
|
1,193,370 Mmbtu/day |
|
|
$ 2.96 |
|
|
2019 |
|
Swaps |
|
594,589 Mmbtu/day |
|
|
$ 2.82 |
|
|
2018 |
|
Calls |
|
70,000 Mmbtu/day |
|
|
$ 3.10 (1) |
|
|
2018 |
|
Swaptions |
|
160,000 Mmbtu/day |
|
|
$ 3.07 (2) |
|
|
2019 |
|
Swaptions |
|
298,014 Mmbtu/day |
|
|
$ 2.86 (2) |
|
|
2020 |
|
Swaptions |
|
10,000 Mmbtu/day |
|
|
$ 2.75 (2) |
|
|
|
|
|
|
|
|
|
|
|
|
Crude Oil |
|
|
|
|
|
|
|
|
|
2018 |
|
Swaps |
|
8,500 bbls/day |
|
|
$ 53.20 |
|
|
2019 |
|
Swaps |
|
7,000 bbls/day |
|
|
$ 55.26 |
|
|
2020 |
|
Swaps |
|
1,500 bbls/day |
|
|
$ 60.63 |
|
|
2019 |
|
Collars |
|
1,000 bbls/day |
|
|
$ 63.00 − $ 73.03 |
|
|
|
|
|
|
|
|
|
|
|
|
NGLs (C3-Propane) |
|
|
|
|
|
|
|
|
|
2018 |
|
Swaps |
|
11,668 bbls/day |
|
|
$ 0.74/gallon |
|
|
January – June 2019 |
|
Swaps |
|
7,500 bbls/day |
|
|
$ 0.92/gallon |
|
|
2018 |
|
Collars |
|
5,000 bbls/day |
|
|
$ 0.95 − $ 1.04 |
|
|
January – March 2019 |
|
Collars |
|
6,500 bbls/day |
|
|
$ 0.92 − $1.02 |
|
|
|
|
|
|
|
|
|
|
|
|
NGLs (NC4-Normal Butane) |
|
|
|
|
|
|
|
|
|
2018 |
|
Swaps |
|
5,500 bbls/day |
|
|
$ 0.91/gallon |
|
|
January – March 2019 |
|
Swaps |
|
2,250 bbls/day |
|
|
$ 1.22/gallon |
|
|
|
|
|
|
|
|
|
|
|
|
NGLs (C5-Natural Gasoline) |
|
|
|
|
|
|
|
|
|
2018 |
|
Swaps |
|
5,402 bbls/day |
|
|
$ 1.24/gallon |
|
|
2019 |
|
Swaps |
|
2,178 bbls/day |
|
|
$ 1.42/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 October 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 185,000 Mmbtu/day on which the counterparty can elect to double the volume at a weighted average price of $2.89. We also have swaps in place for 2019 for 150,000 Mmbtu per day on which the counterparty can elect to extend the contract through December 2020 at a weighted average price of $2.81. For 2020, we have swaps in place for 10,000 Mmbtu/day on which the counterparty can elect to double the volume at a weighted average price of $2.75. |
|
| Combined Fair Value of Derivatives, by Consolidated Balance Sheets |
The combined fair value of derivatives included in the accompanying consolidated balance sheets as of September 30, 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):
|
|
|
|
September 30, 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 |
|
$ |
6,503 |
|
|
$ |
(4,745 |
) |
|
$ |
1,758 |
|
|
|
–swaptions |
|
|
12,893 |
|
|
|
(12,700 |
) |
|
|
193 |
|
|
|
–basis swaps |
|
|
1,246 |
|
|
|
(1,112 |
) |
|
|
134 |
|
|
Crude oil |
–swaps |
|
|
— |
|
|
|
(799 |
) |
|
|
(799 |
) |
|
|
−collars |
|
|
— |
|
|
|
(69 |
) |
|
|
(69 |
) |
|
NGLs |
–C3 propane swaps |
|
|
3 |
|
|
|
(3 |
) |
|
|
— |
|
|
|
–C3 propane spread swaps |
|
|
25,747 |
|
|
|
(25,747 |
) |
|
|
— |
|
|
Freight |
−swaps |
|
|
301 |
|
|
|
(301 |
) |
|
|
— |
|
|
|
|
|
$ |
46,693 |
|
|
$ |
(45,476 |
) |
|
$ |
1,217 |
|
|
|
|
|
September 30, 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 |
|
$ |
(10,030 |
) |
|
$ |
4,745 |
|
|
$ |
(5,285 |
) |
|
|
–swaptions |
|
|
(8,759 |
) |
|
|
12,700 |
|
|
|
3,941 |
|
|
|
–basis swaps |
|
|
(2,548 |
) |
|
|
1,112 |
|
|
|
(1,436 |
) |
|
|
–calls |
|
|
(504 |
) |
|
|
— |
|
|
|
(504 |
) |
|
Crude oil |
–swaps |
|
|
(57,424 |
) |
|
|
799 |
|
|
|
(56,625 |
) |
|
|
−collars |
|
|
(717 |
) |
|
|
69 |
|
|
|
(648 |
) |
|
NGLs |
–C3 propane swaps |
|
|
(20,363 |
) |
|
|
3 |
|
|
|
(20,360 |
) |
|
|
–C3 propane collars |
|
|
(3,237 |
) |
|
|
— |
|
|
|
(3,237 |
) |
|
|
–C3 propane spread swaps |
|
|
(27,741 |
) |
|
|
25,747 |
|
|
|
(1,994 |
) |
|
|
–NC4 butane swaps |
|
|
(8,223 |
) |
|
|
— |
|
|
|
(8,223 |
) |
|
|
–C5 natural gasoline swaps |
|
|
(14,937 |
) |
|
|
— |
|
|
|
(14,937 |
) |
|
Freight |
–swaps |
|
|
— |
|
|
|
301 |
|
|
|
301 |
|
|
|
|
|
$ |
(154,483 |
) |
|
$ |
45,476 |
|
|
$ |
(109,007 |
) |
|
|
|
|
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
September 30, |
|
|
|
Nine Months Ended
September 30, |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
Commodity swaps |
$ |
(35,868 |
) |
|
$ |
(87,861 |
) |
|
$ |
(143,598 |
) |
|
$ |
172,457 |
|
|
Swaptions |
|
7,093 |
|
|
|
(7,602 |
) |
|
|
4,100 |
|
|
|
(7,602 |
) |
|
Collars |
|
(3,965 |
) |
|
|
956 |
|
|
|
(4,031 |
) |
|
|
15,221 |
|
|
Puts |
|
— |
|
|
|
(73 |
) |
|
|
— |
|
|
|
9,646 |
|
|
Calls |
|
197 |
|
|
|
104 |
|
|
|
526 |
|
|
|
1,144 |
|
|
Basis swaps |
|
(2,350 |
) |
|
|
6,113 |
|
|
|
(9,043 |
) |
|
|
(2,554 |
) |
|
Freight swaps |
|
302 |
|
|
|
(63 |
) |
|
|
156 |
|
|
|
14 |
|
|
Total |
$ |
(34,591 |
) |
|
$ |
(88,426 |
) |
|
$ |
(151,890 |
) |
|
$ |
188,326 |
|
|