Derivative Volumes Hedged and Average Hedge Prices |
The following table sets forth our commodity-based derivative volumes by year as of June 30, 2019, excluding our basis and freight swaps which are discussed separately below:
Period |
|
Contract Type |
|
Volume Hedged |
|
Weighted Average Hedge Price |
Natural Gas |
|
|
|
|
|
|
|
|
2019 |
|
Swaps |
|
1,262,473 Mmbtu/day |
|
|
$ 2.81 |
|
2020 |
|
Swaps |
|
305,000 Mmbtu/day |
|
|
$ 2.76 |
|
2019 |
|
Swaptions |
|
150,000 Mmbtu/day |
|
|
$ 2.81 (1) |
|
2020 |
|
Swaptions |
|
177,568 Mmbtu/day |
|
|
$ 2.78 (1) |
|
November – December 2019 |
|
Swaptions |
|
20,000 Mmbtu/day |
|
|
$ 3.20 (1) |
|
January – March 2020 |
|
Swaptions |
|
20,000 Mmbtu/day |
|
|
$ 3.20 (1) |
|
|
|
|
|
|
|
|
|
|
Crude Oil |
|
|
|
|
|
|
|
|
2019 |
|
Swaps |
|
8,750 bbls/day |
|
|
$ 55.89 |
|
2020 |
|
Swaps |
|
4,617 bbls/day |
|
|
$ 60.48 |
|
2019 |
|
Collars |
|
1,000 bbls/day |
|
|
$ 63.00 − $ 73.00 |
|
|
|
|
|
|
|
|
|
|
NGLs (C5-Natural Gasoline) |
|
|
|
|
|
|
|
|
2019 |
|
Swaps |
|
4,500 bbls/day |
|
|
$ 1.36/gallon |
|
(1) |
Contains a combined derivative instrument consisting of a fixed price swap and a sold option to extend or double the volumes. We have swaps in place for 2019 for 150,000 Mmbtu/day on which the counterparty can elect to extend the contract through December 2020 at a weighted average price of $2.81. In addition, we have swaps in place for November and December 2019 where, if the counterparty elects to double the volume, we would have additional swaps in place for 20,000 Mmbtu/day at a weighted average price of $3.20. In 2020, if the counterparty elects to double the volume, we would have additional swaps in place for 140,000 Mmbtu/day at a weighted average price of $2.78. We also have swaps in place for 2020 for 50,000 Mmbtu/day on which the counterparty can elect to extend the contract through December 2021 at a weighted average price of $2.75. In addition, for January through March 2020, we have additional swaps in place where if the counterparty elects to double the volume, we would have an additional 20,000 Mmbtu/day at a weighted average price of $3.20. |
|
Combined Fair Value of Derivatives, by Consolidated Balance Sheets |
The combined fair value of derivatives included in the accompanying consolidated balance sheets as of June 30, 2019 and December 31, 2018 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):
|
|
|
June 30, 2019 |
|
|
|
|
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 |
|
$ |
128,392 |
|
|
$ |
(2,132 |
) |
|
$ |
126,260 |
|
|
–swaptions |
|
|
29,982 |
|
|
|
(6,070 |
) |
|
|
23,912 |
|
|
–basis swaps |
|
|
1,220 |
|
|
|
(1,305 |
) |
|
|
(85 |
) |
Crude oil |
–swaps |
|
|
8,459 |
|
|
|
(4,932 |
) |
|
|
3,527 |
|
|
−collars |
|
|
1,116 |
|
|
|
— |
|
|
|
1,116 |
|
NGLs |
–C3 propane spread swaps |
|
|
6,815 |
|
|
|
(7,767 |
) |
|
|
(952 |
) |
|
−C5 natural gasoline swaps |
|
|
7,857 |
|
|
|
— |
|
|
|
7,857 |
|
Freight |
−swaps |
|
|
1,501 |
|
|
|
— |
|
|
|
1,501 |
|
|
|
|
$ |
185,342 |
|
|
$ |
(22,206 |
) |
|
$ |
163,136 |
|
|
|
|
June 30, 2019 |
|
|
|
|
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 |
|
$ |
(2,132 |
) |
|
$ |
2,132 |
|
|
$ |
— |
|
|
–swaptions |
|
|
(6,070 |
) |
|
|
6,070 |
|
|
|
— |
|
|
–basis swaps |
|
|
(3,255 |
) |
|
|
1,305 |
|
|
|
(1,950 |
) |
Crude oil |
–swaps |
|
|
(4,932 |
) |
|
|
4,932 |
|
|
|
— |
|
NGLs |
–C3 propane spread swaps |
|
|
(8,592 |
) |
|
|
7,767 |
|
|
|
(825 |
) |
|
|
|
$ |
(24,981 |
) |
|
$ |
22,206 |
|
|
$ |
(2,775 |
) |
|
|
|
December 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 |
|
$ |
20,834 |
|
|
$ |
(11,748 |
) |
|
$ |
9,086 |
|
|
–swaptions |
|
|
5,200 |
|
|
|
(3,883 |
) |
|
|
1,317 |
|
|
–basis swaps |
|
|
6,468 |
|
|
|
(2,822 |
) |
|
|
3,646 |
|
Crude oil |
–swaps |
|
|
26,481 |
|
|
|
(651 |
) |
|
|
25,830 |
|
|
–collars |
|
|
5,945 |
|
|
|
(707 |
) |
|
|
5,238 |
|
NGLs |
–C3 propane swaps |
|
|
18,719 |
|
|
|
(589 |
) |
|
|
18,130 |
|
|
–C3 propane collars |
|
|
8,538 |
|
|
|
— |
|
|
|
8,538 |
|
|
–C3 propane spread swaps |
|
|
8,984 |
|
|
|
(8,868 |
) |
|
|
116 |
|
|
–NC4 butane swaps |
|
|
4,084 |
|
|
|
— |
|
|
|
4,084 |
|
|
–C5 natural gasoline swaps |
|
|
17,371 |
|
|
|
— |
|
|
|
17,371 |
|
Freight |
–swaps |
|
|
— |
|
|
|
(561 |
) |
|
|
(561 |
) |
|
|
|
$ |
122,624 |
|
|
$ |
(29,829 |
) |
|
$ |
92,795 |
|
|
|
|
December 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 |
|
$ |
(18,332 |
) |
|
$ |
11,748 |
|
|
$ |
(6,584 |
) |
|
–swaptions |
|
|
(7,972 |
) |
|
|
3,883 |
|
|
|
(4,089 |
) |
|
–basis swaps |
|
|
(1,702 |
) |
|
|
2,822 |
|
|
|
1,120 |
|
Crude oil |
–swaps |
|
|
— |
|
|
|
651 |
|
|
|
651 |
|
|
–collars |
|
|
— |
|
|
|
707 |
|
|
|
707 |
|
NGLs |
–C3 propane swaps |
|
|
— |
|
|
|
589 |
|
|
|
589 |
|
|
–C3 propane spread swaps |
|
|
(8,868 |
) |
|
|
8,868 |
|
|
|
— |
|
Freight |
–swaps |
|
|
(561 |
) |
|
|
561 |
|
|
|
— |
|
|
|
|
$ |
(37,435 |
) |
|
$ |
29,829 |
|
|
$ |
(7,606 |
) |
|
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 Income (Loss) |
|
|
|
Three Months Ended
June 30, |
|
|
|
Six Months Ended
June 30, |
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
Commodity swaps |
$ |
159,128 |
|
|
$ |
(91,195 |
) |
|
$ |
101,710 |
|
|
$ |
(107,730 |
) |
Swaptions |
|
32,383 |
|
|
|
(6,592 |
) |
|
|
29,092 |
|
|
|
(2,993 |
) |
Collars |
|
578 |
|
|
|
11 |
|
|
|
(3,946 |
) |
|
|
(66 |
) |
Calls |
|
— |
|
|
|
152 |
|
|
|
— |
|
|
|
329 |
|
Basis swaps |
|
938 |
|
|
|
(5,828 |
) |
|
|
4,353 |
|
|
|
(6,693 |
) |
Freight swaps |
|
2,218 |
|
|
|
162 |
|
|
|
2,305 |
|
|
|
(146 |
) |
Total |
$ |
195,245 |
|
|
$ |
(103,290 |
) |
|
$ |
133,514 |
|
|
$ |
(117,299 |
) |
|