XML 34 R23.htm IDEA: XBRL DOCUMENT v3.21.2
Derivative Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2021
Derivative Instruments Not Designated as Hedging Instruments [Abstract]  
Schedule of notional amounts of outstanding derivative positions [Table Text Block]
As of June 30, 2021, the Company had commodity derivative contracts outstanding through the fourth quarter of 2023 as summarized in the tables below.
Contract Period
Q3 2021Q4 202120222023
Oil Derivatives (volumes in MBbl and prices in $ per Bbl):
Swaps
NYMEX WTI Volumes5,363 4,744 7,823 1,190 
Weighted-Average Contract Price$41.16 $39.85 $44.69 $45.20 
Collars
NYMEX WTI Volumes— — 1,721 — 
Weighted-Average Floor Price$— $— $51.84 $— 
Weighted-Average Ceiling Price$— $— $58.37 $— 
Basis Swaps
WTI Midland-NYMEX WTI Volumes3,756 3,824 9,500 — 
Weighted-Average Contract Price (1)
$0.75 $0.71 $1.15 $— 
NYMEX WTI-ICE Brent Volumes920 920 3,650 — 
Weighted-Average Contract Price (2)
$(7.86)$(7.86)$(7.78)$— 
WTI Houston MEH-NYMEX WTI Volumes356 466 1,329 — 
Weighted-Average Contract Price (3)
$0.60 $0.60 $1.25 $— 
Roll Differential Swaps
NYMEX WTI Volumes4,326 3,831 11,278 1,832 
Weighted-Average Contract Price$(0.18)$(0.16)$0.11 $0.39 
Gas Derivatives (volumes in BBtu and prices in $ per MMBtu):
Swaps (4)
IF HSC Volumes12,575 12,412 28,932 — 
Weighted-Average Contract Price$2.40 $2.41 $2.52 $— 
WAHA Volumes8,086 7,627 14,087 — 
Weighted-Average Contract Price$1.88 $1.82 $2.32 $— 
IF Tenn TX Z0— — 513 — 
Weighted-Average Contract Price$— $— $3.22 $— 
NGL Derivatives (volumes in MBbl and prices in $ per Bbl):
Swaps
OPIS Propane Mont Belvieu Non-TET Volumes854 824 461 — 
Weighted-Average Contract Price$22.16 $22.15 $27.19 $— 
OPIS Normal Butane Mont Belvieu Non-TET Volumes37 36 — — 
Weighted-Average Contract Price$30.87 $30.87 $— $— 
Collars
OPIS Propane Mont Belvieu Non-TET Volumes— — 627 — 
Weighted-Average Floor Price$— $— $23.83 $— 
Weighted-Average Ceiling Price$— $— $29.19 $— 
____________________________________________
(1)    Represents the price differential between WTI Midland (Midland, Texas) and NYMEX WTI (Cushing, Oklahoma).
(2)    Represents the price differential between NYMEX WTI (Cushing, Oklahoma) and ICE Brent (North Sea).
(3)    Represents the price differential between Argus WTI Houston MEH (Houston, Texas) and NYMEX WTI (Cushing, Oklahoma).
(4)    The Company has natural gas swaps in place that settle against Inside FERC Houston Ship Channel (“IF HSC”), Inside FERC West Texas, and Platt’s Gas Daily West Texas (“IF WAHA” and “GD WAHA”, respectively, and together “WAHA”), and Inside FERC Tennessee Texas, Zone 0 (“IF Tenn TX Z0”). As of June 30, 2021, WAHA volumes were comprised of 70 percent IF WAHA and 30 percent GD WAHA.
Schedule of fair value of derivatives in accompanying balance sheets [Table Text Block]
The following table details the fair value of commodity derivative contracts recorded in the accompanying balance sheets, by category:
As of June 30, 2021As of December 31, 2020
(in thousands)
Derivative assets:
Current assets$31,303 $31,203 
Noncurrent assets13,534 23,150 
Total derivative assets$44,837 $54,353 
Derivative liabilities:
Current liabilities$545,062 $200,189 
Noncurrent liabilities116,273 22,331 
Total derivative liabilities$661,335 $222,520 
Schedule of the potential effects of master netting arrangements [Table Text Block]
The following table provides a reconciliation between the gross assets and liabilities reflected on the accompanying balance sheets and the potential effects of master netting arrangements on the fair value of the Company’s commodity derivative contracts:
Derivative Assets as ofDerivative Liabilities as of
June 30, 2021December 31, 2020June 30, 2021December 31, 2020
(in thousands)
Gross amounts presented in the accompanying balance sheets$44,837 $54,353 $(661,335)$(222,520)
Amounts not offset in the accompanying balance sheets(44,370)(53,598)44,370 53,598 
Net amounts$467 $755 $(616,965)$(168,922)
Schedule of the components of the derivative settlement (gain) loss and of the net derivative (gain) loss [Table Text Block]
The following table summarizes the commodity components of the derivative settlement (gain) loss, as well as the components of the net derivative (gain) loss line item presented in the accompanying statements of operations:
For the Three Months Ended June 30,For the Six Months Ended June 30,
2021202020212020
(in thousands)
Derivative settlement (gain) loss:
Oil contracts$134,298 $(138,606)$190,627 $(192,188)
Gas contracts12,232 (1,054)52,680 (15,679)
NGL contracts12,292 (2,868)23,400 (8,098)
Total net derivative settlement (gain) loss$158,822 $(142,528)$266,707 $(215,965)
Net derivative (gain) loss:
Oil contracts$277,215 $151,250 $543,030 $(391,290)
Gas contracts61,364 8,261 110,286 14,989 
NGL contracts31,769 7,689 61,721 (1,839)
Total net derivative (gain) loss$370,348 $167,200 $715,037 $(378,140)