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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
 6 Months Ended
Jun. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Hedging Positions
The following tables illustrate our derivative positions for calendar years 2017 and 2018 as of August 7, 2017:
 
 
Put Contracts (NYMEX)
 
 
Oil
 
 
Daily Volume
(Bbls/d)
 
Price
($ per Bbl)
2017
February - December
1,000

 
$
50.00

2017
February - December
1,000

 
50.00

2017
July - December
1,000

 
41.10

2018
January - December
1,000

 
54.00

2018
January - December
1,000

 
45.00


 
 
Fixed-Price Swaps (NYMEX)
 
 
Natural Gas
 
Oil
 
 
Daily Volume
(MMBtus/d)
 
Swap Price
($ per MMBtu)
 
Daily Volume
(Bbls/d)
 
Swap Price
($ per Bbl)
2017
March - December


 


 
1,000

 
$
53.90

2017
July - December
6,000

 
$
3.00

 
 
 
 
2017
July - December
5,000

 
3.00

 
 
 
 
2018
January - December


 


 
1,000

 
52.50


 
 
Collar Contracts (NYMEX)
 
 
Natural Gas
 
Oil
 
 
Daily Volume
(MMBtus/d)
 
Floor Price
($ per MMBtu)
 
Ceiling Price
($ per MMBtu)
 
Daily Volume
(Bbls/d)
 
Floor Price
($ per Bbl)
 
Ceiling Price
($ per Bbl)
2017
March - December
 
 
 
 
 
 
1,000

 
$
50.00

 
$
56.45

2017
April - December
 
 
 
 
 
 
1,000

 
50.00

 
56.75

2018
January - December
6,000

 
$
2.75

 
$
3.24

 
1,000

 
45.00

 
55.35
Gains or Losses Related to Changes in Fair Value and Cash Settlements on Derivatives Not Qualifying as Hedging Instruments
The following table discloses the location and fair value amounts of derivatives not designated or not qualifying as hedging instruments, as reported in our balance sheet, at June 30, 2017 (Successor) (in millions). We had no outstanding hedging instruments at December 31, 2016 (Predecessor). 
Fair Value of Derivatives Not Designated or Not Qualifying as Hedging Instruments at
June 30, 2017
(Successor)
 
Asset Derivatives
 
Liability Derivatives
Description
Balance Sheet Location
 
Fair
Value
 
Balance Sheet Location
 
Fair
Value
Commodity contracts
Current assets: Fair value of
derivative contracts
 
$
8.0

 
Current liabilities: Fair value of derivative contracts
 
$
0.3

 
Long-term assets: Fair value
of derivative contracts
 
3.4

 
Long-term liabilities: Fair
value of derivative contracts
 
—

 
 
 
$
11.4

 
 
 
$
0.3

 
 
 
 
 
 
 
 
The following table discloses the before tax effect of our derivatives not designated or not qualifying as hedging instruments on the statement of operations for the three months ended June 30, 2017 (Successor), the period from January 1, 2017 through February 28, 2017 (Predecessor) and the period from March 1, 2017 through June 30, 2017 (Successor) (in millions).
Gain (Loss) Recognized in Derivative Income (Expense)
 
Successor
 
Successor
 
 
Predecessor
 
Three Months Ended
June 30, 2017
 
Period from
March 1, 2017
through
June 30, 2017
 
 
Period from
January 1, 2017
through
February 28, 2017
Description
 
 
 
 
 
 
Commodity contracts:
 
 
 
 
 
 
Cash settlements
$
1.3

 
$
1.4

 
 
$
—

Change in fair value
4.2

 
6.7

 
 
(1.8
)
Total gains (losses) on derivatives not designated or not qualifying as hedging instruments
$
5.5

 
$
8.1

 
 
$
(1.8
)
Before Tax Effect of Derivative Instruments in Statement of Operations
The following tables disclose the before tax effect of derivatives qualifying as hedging instruments, as reported in the statement of operations, during the three and six months ended June 30, 2016 (Predecessor) (in millions):

Effect of Derivatives Qualifying as Hedging Instruments on the Statement of Operations
 
for the Three Months Ended June 30, 2016
 
Derivatives in
Cash Flow Hedging
Relationships
 
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives
 
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) (a)
 
Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion)
 
 
 
2016
 
Location
 
2016
 
Location
 
2016
 
Commodity contracts
 
$
(8.6
)
 
Operating revenue - oil/natural gas production
 
$
8.9

 
Derivative income (expense), net
 
$
(0.6
)
 
Total
 
$
(8.6
)
 
 
 
$
8.9

 
 
 
$
(0.6
)


(a) For the three months ended June 30, 2016, effective hedging contracts increased oil revenue by $5.1 million and increased natural gas revenue by $3.8 million.
Effect of Derivatives Qualifying as Hedging Instruments on the Statement of Operations
 
for the Six Months Ended June 30, 2016
 
Derivatives in
Cash Flow Hedging
Relationships
 
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives
 
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) (a)
 
Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion)
 
 
 
2016
 
Location
 
2016
 
Location
 
2016
 
Commodity contracts
 
$
(4.0
)
 
Operating revenue - oil/natural gas production
 
$
21.7

 
Derivative income (expense), net
 
$
(0.5
)
 
Total
 
$
(4.0
)
 
 
 
$
21.7

 
 
 
$
(0.5
)
 
Summary of Offsetting Liabilities
The following table presents the potential impact of the offset rights associated with our recognized assets and liabilities at June 30, 2017 (Successor) (in millions):
 
 
As Presented Without Netting
 
Effects of Netting
 
With Effects of Netting
 
 
 
 
 
 
 
Current assets: Fair value of derivative contracts
 
$
8.0

 
$
(0.3
)
 
$
7.7

Long-term assets: Fair value of derivative contracts
 
3.4

 
—

 
3.4

Current liabilities: Fair value of derivative contracts
 
(0.3
)
 
0.3

 
—

Long-term liabilities: Fair value of derivative contracts
 
—

 
—

 
—
Summary of Offsetting Assets
The following table presents the potential impact of the offset rights associated with our recognized assets and liabilities at June 30, 2017 (Successor) (in millions):
 
 
As Presented Without Netting
 
Effects of Netting
 
With Effects of Netting
 
 
 
 
 
 
 
Current assets: Fair value of derivative contracts
 
$
8.0

 
$
(0.3
)
 
$
7.7

Long-term assets: Fair value of derivative contracts
 
3.4

 
—

 
3.4

Current liabilities: Fair value of derivative contracts
 
(0.3
)
 
0.3

 
—

Long-term liabilities: Fair value of derivative contracts
 
—

 
—

 
—