Quarterly report pursuant to Section 13 or 15(d)

Derivative Instruments (Tables)

v3.19.1
Derivative Instruments (Tables)
3 Months Ended
Mar. 31, 2019
Derivative Instruments.  
Schedule of outstanding commodity derivatives

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas
MMbtu/day

 

 

Natural Gas
Liquids
MT/day

 

Weighted
average index
price

 

Three months ending June 30, 2019:

 

 

 

 

 

 

 

 

 

NYMEX ($/MMBtu)

 

755,000

 

 

 —

 

$

3.26

 

Propane Argus ARA ($/MT)

 

 —

 

 

1,033

 

 

415.03

 

Propane Argus FEI ($/MT)

 

 —

 

 

1,033

 

 

456.55

 

Total

 

755,000

 

 

2,066

 

 

 

 

Three months ending September 30, 2019:

 

 

 

 

 

 

 

 

 

NYMEX ($/MMBtu)

 

755,000

 

 

 —

 

$

3.32

 

Total

 

755,000

 

 

 —

 

 

 

 

Three months ending December 31, 2019:

 

 

 

 

 

 

 

 

 

NYMEX ($/MMBtu)

 

755,000

 

 

 —

 

$

3.45

 

Total

 

755,000

 

 

 —

 

 

 

 

Year ending December 31, 2020:

 

 

 

 

 

 

 

 

 

NYMEX ($/MMBtu)

 

1,417,500

 

 

 —

 

$

3.00

 

Year ending December 31, 2021:

 

 

 

 

 

 

 

 

 

NYMEX ($/MMBtu)

 

710,000

 

 

 —

 

$

3.00

 

Year ending December 31, 2022:

 

 

 

 

 

 

 

 

 

NYMEX ($/MMBtu)

 

850,000

 

 

 —

 

$

3.00

 

Year ending December 31, 2023:

 

 

 

 

 

 

 

 

 

NYMEX ($/MMBtu)

 

90,000

 

 

 —

 

$

2.91

 

 

Tabular disclosure of commodity derivatives basis differential positions which settle on the pricing index to basis differential of Columbia Gas (TCO) to the NYMEX Henry Hub natural gas price.

As of March 31, 2019, the Company’s fixed price natural gas collar positions from April 1, 2019 through December 31, 2019 were as follows (abbreviations in the table refer to the index to which the collar position is tied, as follows (NYMEX=Henry Hub):

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas

 

Weighted average index price

 

 

 

MMbtu/day

 

Ceiling price

 

Floor price

 

Three months ending June 30, 2019:

 

 

 

 

 

 

 

 

 

NYMEX ($/MMBtu)

 

1,575,000

 

$

3.30

 

$

2.50

 

Three months ending September 30, 2019:

 

 

 

 

 

 

 

 

 

NYMEX ($/MMBtu)

 

1,575,000

 

$

3.30

 

$

2.50

 

Three months ending December 31, 2019:

 

 

 

 

 

 

 

 

 

NYMEX ($/MMBtu)

 

1,575,000

 

$

3.52

 

$

2.50

 

 

Summary of the fair values of derivative instruments, which are not designated as hedges for accounting purposes

 

 

 

 

 

 

 

 

 

 

 

 

 

  

December 31, 2018

  

March 31, 2019

 

 

  

Balance sheet
location

  

Fair value

  

Balance sheet
location

  

Fair value

 

 

 

 

 

(In thousands)

 

 

 

(In thousands)

 

Asset derivatives not designated as hedges for accounting purposes:

 

 

 

 

 

 

 

 

 

 

 

Commodity derivatives - current

 

Derivative instruments

 

$

245,263

  

Derivative instruments

 

$

122,425

 

Commodity derivatives - noncurrent

 

Derivative instruments

 

 

362,169

  

Derivative instruments

 

 

313,909

 

 

 

 

 

 

 

 

 

 

 

 

 

Total asset derivatives

 

 

 

 

607,432

 

 

 

 

436,334

 

 

 

 

 

 

 

 

 

 

 

 

 

Liability derivatives not designated as hedges for accounting purposes:

 

 

 

 

 

 

 

 

 

 

 

Commodity derivatives - current

 

Derivative instruments

 

 

532

  

Derivative instruments

 

 

3,894

 

Commodity derivatives - noncurrent

 

Derivative instruments

 

 

 —

  

Derivative instruments

 

 

 —

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liability derivatives

 

 

 

 

532

 

 

 

 

3,894

 

 

 

 

 

 

 

 

 

 

 

 

 

Net derivatives

 

 

 

$

606,900

 

 

 

$

432,440

 

 

Schedule of gross amounts of recognized derivative assets and liabilities, the amounts offset under netting arrangements with counterparties, and the resulting net amounts

The following table presents the gross values of recognized derivative assets and liabilities, the amounts offset under master netting arrangements with counterparties, and the resulting net amounts presented in the consolidated balance sheets as of the dates presented, all at fair value (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

 

March 31, 2019

 

 

 

Gross
amounts on
balance sheet

 

Gross amounts
offset on
balance sheet

 

Net amounts
of assets (liabilities) on
balance sheet

 

Gross
amounts on
balance sheet

 

Gross amounts
offset on
balance sheet

 

Net amounts
of assets (liabilities) on
balance sheet

 

Commodity derivative assets

 

$

658,830

 

 

(51,398)

 

 

607,432

 

$

459,928

 

 

(23,594)

 

 

436,334

 

Commodity derivative liabilities

 

$

(51,930)

 

 

51,398

 

 

(532)

 

$

(27,488)

 

 

23,594

 

 

(3,894)

 

 

Summary of derivative fair value gains (losses)

The following is a summary of derivative fair value gains and losses and where such values are recorded in the unaudited condensed consolidated statements of operations (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

Statement of
operations

 

Three months ended March 31,

 

 

 

location

 

2018

 

2019

 

Commodity derivative fair value gains (losses)

 

Revenue

 

 

22,437

 

 

(77,368)

 

Marketing derivative fair value gains

 

Revenue

 

 

94,234

 

 

 —