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Derivative Instruments
3 Months Ended
Mar. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments
Derivative Instruments    
The Company seeks to reduce its exposure to commodity price volatility by hedging a portion of its production through commodity derivative instruments. When the conditions for hedge accounting are met, the Company may designate its commodity derivatives as cash flow hedges. The changes in fair value of derivative instruments that qualify for hedge accounting treatment are recorded in other comprehensive income (loss) until the hedged oil or natural gas quantities are produced. If a derivative does not qualify for hedge accounting treatment, the changes in the fair value of the derivative are recorded in the income statement as derivative income (expense). At March 31, 2019, the Company had no outstanding derivative contracts.
Oil and gas sales include additions (reductions) related to the settlement of oil hedges and gas hedges of $(264,000) and $804,000, respectively, for the three months ended March 31, 2018. No such settlements occurred in the periods ended March 31, 2019 or February 8, 2019.
Derivatives designated as hedging instruments:
Effect of Cash Flow Hedges on the Consolidated Statements of Operations and Comprehensive Loss for the three months ended March 31, 2018:
Instrument
Amount of Gain Recognized in Other
Comprehensive Income
 
Location of
Gain Reclassified
into Income
 
Amount of Gain (Loss) Reclassified into
Oil and Gas Sales
Commodity Derivatives - March 31, 2018
$
(545
)
 
Oil and gas sales
 
$
540