Derivative Activities (Tables)

6 Months Ended

Jun. 30, 2019

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 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	)