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Derivative Financial Instruments
 3 Months Ended
Mar. 31, 2021
Derivative Instruments Not Designated as Hedging Instruments [Abstract]  
Derivative Instruments and Hedging Activities Disclosure [Text Block]
NOTE 5 - COMMODITY DERIVATIVE FINANCIAL INSTRUMENTS

Objective and Strategy. Our results of operations and operating cash flows are affected by changes in market prices for crude oil, natural gas and NGLs. To manage a portion of our exposure to price volatility from producing crude oil and natural gas we enter into commodity derivative contracts such as collars, fixed-price exchanges and basis protection exchanges, to protect against price declines in future periods. We do not enter into derivative contracts for speculative or trading purposes.

We believe our commodity derivative instruments continue to be effective in achieving the risk management objectives for which they were intended. Depending on changes in oil and gas futures markets and management's view of underlying supply and demand trends, we may increase or decrease our derivative positions from current levels. As of March 31, 2021, we had derivative instruments in place for a portion of our anticipated production in 2021 through 2023. Our commodity derivative contracts have been entered into at no upfront cost to us as we hedge our anticipated production at the then-prevailing commodity market prices, without adjustment for premium or discount.
Commodity Derivative Contracts. As of March 31, 2021, we had the following outstanding derivative contracts. When aggregating multiple contracts, the weighted-average contract price is shown:
 CollarsFixed-Price Swaps 
Commodity/ Index/
Maturity Period
Quantity
(Crude oil -
MBbls
Natural Gas - BBtu)
Weighted-Average
Contract Price
Quantity
(Crude Oil - MBbls
Gas and Basis-
BBtu)
Weighted-
Average
Contract
Price
Fair Value
March 31,
2021
(in thousands)
FloorsCeilings
Crude Oil
NYMEX
20213,255 $38.47 $49.76 7,576 $45.33 $(126,882)
20222,112 45.74 58.34 6,384 43.65 (69,493)
2023— — — 2,010 53.73 3,856 
Total Crude Oil5,367 15,970 $(192,519)
Natural Gas
NYMEX
202154,900 2.51 2.92 23,850 2.40 (10,278)
202217,400 2.50 2.89 14,700 2.65 554 
2023— — — 10,200 2.50 (406)
Total Natural Gas72,300 48,750 (10,130)
Basis Protection - Natural Gas
CIG
202178,750 (0.44)(18,592)
202232,100 (0.33)(5,242)
202310,200 (0.23)(200)
Total Basis Protection - Natural Gas121,050 (24,034)
Commodity Derivatives Fair Value$(226,683)

Effect of Derivative Instruments on the Condensed Consolidated Balance Sheet. The balance sheet line items and fair value amounts of our derivative instruments are disclosed in Note 4 - Fair Value Measurements.

Our financial derivative agreements contain master netting provisions that provide for the net settlement of contracts through a single payment in the event of early termination. We have elected not to offset the fair value positions recorded on our condensed consolidated balance sheets.

The following table reflects the impact of netting agreements on gross derivative assets and liabilities as of the dates indicated:
As of March 31, 2021Total Gross Amount Presented on Balance SheetEffect of Master Netting AgreementsTotal Net Amount
(in thousands)
Derivative assets:
Derivative instruments, at fair value$23,619 $(22,760)$859 
Derivative liabilities:
Derivative instruments, at fair value$250,302 $(22,760)$227,542 
As of December 31, 2020Total Gross Amount Presented on Balance SheetEffect of Master Netting AgreementsTotal Net Amount
(in thousands)
Derivative assets:
Derivative instruments, at fair value$58,434 $(39,691)$18,743 
Derivative liabilities:
Derivative instruments, at fair value$134,511 $(39,691)$94,820