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Derivative Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The following presents the impact of this presentation to the Company’s recognized assets and liabilities for the periods indicated:


	As of September 30, 2023
	Presented without		As Presented with
	Effects of Netting	Effects of Netting	Effects of Netting
	(In thousands)
Derivative Assets
Commodity derivative instruments	$9,792	($8,596)	$1,196
Fair value of derivatives - current	$9,792	($8,596)	$1,196
Commodity derivative instruments	$4,270	($4,208)	$62
Contingent consideration arrangements	21,680	—	21,680
Fair value of derivatives - non-current	$25,950	($4,208)	$21,742

Derivative Liabilities
Commodity derivative instruments	($57,575)	$8,596	($48,979)
Contingent consideration arrangements	(12,210)	—	(12,210)
Fair value of derivatives - current	($69,785)	$8,596	($61,189)
Commodity derivative instruments	($14,805)	$4,208	($10,597)
Contingent consideration arrangements	(34,210)	—	(34,210)
Fair value of derivatives - non-current	($49,015)	$4,208	($44,807)


	As of December 31, 2022
	Presented without		As Presented with
	Effects of Netting	Effects of Netting	Effects of Netting
	(In thousands)
Derivative Assets
Fair value of derivatives - current	$51,984	($30,652)	$21,332
Fair value of derivatives - non-current	$1,343	($889)	$454

Derivative Liabilities
Fair value of derivatives - current	($46,849)	$30,652	($16,197)
Fair value of derivatives - non-current	($14,304)	$889	($13,415)

Schedule of Offsetting Liabilities

The following presents the impact of this presentation to the Company’s recognized assets and liabilities for the periods indicated:


	As of September 30, 2023
	Presented without		As Presented with
	Effects of Netting	Effects of Netting	Effects of Netting
	(In thousands)
Derivative Assets
Commodity derivative instruments	$9,792	($8,596)	$1,196
Fair value of derivatives - current	$9,792	($8,596)	$1,196
Commodity derivative instruments	$4,270	($4,208)	$62
Contingent consideration arrangements	21,680	—	21,680
Fair value of derivatives - non-current	$25,950	($4,208)	$21,742

Derivative Liabilities
Commodity derivative instruments	($57,575)	$8,596	($48,979)
Contingent consideration arrangements	(12,210)	—	(12,210)
Fair value of derivatives - current	($69,785)	$8,596	($61,189)
Commodity derivative instruments	($14,805)	$4,208	($10,597)
Contingent consideration arrangements	(34,210)	—	(34,210)
Fair value of derivatives - non-current	($49,015)	$4,208	($44,807)


	As of December 31, 2022
	Presented without		As Presented with
	Effects of Netting	Effects of Netting	Effects of Netting
	(In thousands)
Derivative Assets
Fair value of derivatives - current	$51,984	($30,652)	$21,332
Fair value of derivatives - non-current	$1,343	($889)	$454

Derivative Liabilities
Fair value of derivatives - current	($46,849)	$30,652	($16,197)
Fair value of derivatives - non-current	($14,304)	$889	($13,415)

Schedule of Gain or Loss on Derivative Contracts

The components of “(Gain) loss on derivative contracts” are as follows for the respective periods:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2023	2022	2023	2022
	(In thousands)
(Gain) loss on oil derivatives	$54,446	($157,731)	$18,165	$243,527
(Gain) loss on natural gas derivatives	(2,315)	22,881	2,380	56,800
Loss on NGL derivatives	2,933	—	2,933	4,771
Loss on contingent consideration arrangements	740	—	740	—

(Gain) loss on derivative contracts	$55,804	($134,850)	$24,218	$305,098

Schedule of Derivative Instruments

The components of “Cash received (paid) for commodity derivative settlements, net” and “Cash received (paid) for settlements of contingent consideration arrangements, net” are as follows for the respective periods:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2023	2022	2023	2022
	(In thousands)
Cash flows from operating activities
Cash received (paid) on oil derivatives	$1,680	($117,024)	($4,450)	($374,711)
Cash received (paid) on natural gas derivatives	(560)	(28,572)	17,816	(55,024)
Cash paid on NGL derivatives	(92)	—	(92)	(3,783)
Cash received (paid) for commodity derivative settlements, net	$1,028	($145,596)	$13,274	($433,518)
Cash received for settlements of contingent consideration arrangements, net (1)	$—	$—	$—	$6,492

Cash flows from investing activities
Cash paid for settlement of contingent consideration arrangement (1)	$—	$—	$—	($19,171)

Cash flows from financing activities
Cash received for settlement of contingent consideration arrangement (1)	$—	$—	$—	$8,512

(1) See “Note 8 — Derivative Instruments and Hedging Activities” of the Notes to Consolidated Financial Statements in our 2022 Annual Report for discussion of the contingent consideration arrangements.

Schedule of Outstanding Oil, Natural Gas, and NGL Derivative Contracts

Listed in the tables below are the outstanding oil, natural gas, and NGL derivative contracts as of September 30, 2023:


	For the Remainder	For the Full Year
Oil Contracts (WTI)	2023	2024
Swap Contracts
Total volume (Bbls)	—	1,076,300
Weighted average price per Bbl	$—	$81.66
Collar Contracts (Three-Way Collars)
Total volume (Bbls)	541,528	3,963,025
Weighted average price per Bbl
Ceiling (short call)	$70.95	$78.86
Floor (long put)	$55.00	$58.16
Floor (short put)	$45.00	$48.16
Collar Contracts (Two-Way Collars)
Total volume (Bbls)	993,455	—
Weighted average price per Bbl
Ceiling (short call)	$87.20	$—
Floor (long put)	$72.04	$—









CMA Roll Swap Contracts
Total volume (Bbls)	838,828	—
Weighted average price per Bbl	$0.30	$—


	For the Remainder	For the Full Year
Natural Gas Contracts (Henry Hub)	2023	2024
Swap Contracts
Total volume (MMBtu)	620,000	—
Weighted average price per MMBtu	$3.00	$—
Collar Contracts
Total volume (MMBtu)	2,201,104	8,598,557
Weighted average price per MMBtu
Ceiling (short call)	$5.37	$3.89
Floor (long put)	$3.14	$3.00




Natural Gas Contracts (Waha Basis Differential)
Swap Contracts
Total volume (MMBtu)	2,460,000	7,320,000
Weighted average price per MMBtu	($1.49)	($1.06)

Natural Gas Contracts (HSC Basis Differential)
Swap Contracts
Total volume (MMBtu)	2,760,000	14,640,000
Weighted average price per MMBtu	($0.29)	($0.42)


	For the Remainder	For the Full Year
NGL Contracts (Mont Belvieu Natural Gasoline)	2023	2024
Swap Contracts
Total volume (Bbls)	43,105	—
Weighted average price per Bbl	$56.38	$—
NGL Contracts (Mont Belvieu Propane)
Swap Contracts
Total volume (Bbls)	35,754	—
Weighted average price per Bbl	$31.27	$—
NGL Contracts (Mont Belvieu Purity Ethane)
Swap Contracts
Total volume (Bbls)	35,095	—
Weighted average price per Bbl	$9.54	$—
NGL Contracts (Mont Belvieu Normal Butane)
Swap Contracts
Total volume (Bbls)	33,470	72,105
Weighted average price per Bbl	$35.56	$33.18
NGL Contracts (Mont Belvieu Isobutane)
Swap Contracts
Total volume (Bbls)	10,967	23,462
Weighted average price per Bbl	$35.42	$33.18

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

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