Derivative Instruments (Tables)
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3 Months Ended |
Mar. 31, 2019 |
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| Derivative Instruments. |
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| Schedule of outstanding commodity derivatives |
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Natural gas
MMbtu/day
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Natural Gas
Liquids
MT/day
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Weighted
average index
price
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Three months ending June 30, 2019:
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NYMEX ($/MMBtu)
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755,000
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—
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$
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3.26
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Propane Argus ARA ($/MT)
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—
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1,033
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415.03
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Propane Argus FEI ($/MT)
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—
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1,033
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456.55
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Total
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755,000
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2,066
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Three months ending September 30, 2019:
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NYMEX ($/MMBtu)
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755,000
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—
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$
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3.32
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Total
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755,000
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—
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Three months ending December 31, 2019:
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NYMEX ($/MMBtu)
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755,000
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—
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$
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3.45
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Total
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755,000
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—
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Year ending December 31, 2020:
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NYMEX ($/MMBtu)
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1,417,500
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—
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$
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3.00
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Year ending December 31, 2021:
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NYMEX ($/MMBtu)
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710,000
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—
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$
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3.00
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Year ending December 31, 2022:
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NYMEX ($/MMBtu)
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850,000
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—
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$
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3.00
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Year ending December 31, 2023:
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NYMEX ($/MMBtu)
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90,000
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—
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$
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2.91
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| 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):
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Natural gas
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Weighted average index price
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MMbtu/day
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Ceiling price
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Floor price
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Three months ending June 30, 2019:
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NYMEX ($/MMBtu)
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1,575,000
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$
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3.30
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$
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2.50
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Three months ending September 30, 2019:
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NYMEX ($/MMBtu)
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1,575,000
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$
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3.30
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$
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2.50
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Three months ending December 31, 2019:
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NYMEX ($/MMBtu)
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1,575,000
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$
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3.52
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$
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2.50
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| Summary of the fair values of derivative instruments, which are not designated as hedges for accounting purposes |
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December 31, 2018
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March 31, 2019
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Balance sheet
location
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Fair value
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Balance sheet
location
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Fair value
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(In thousands)
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(In thousands)
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Asset derivatives not designated as hedges for accounting purposes:
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Commodity derivatives - current
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Derivative instruments
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$
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245,263
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Derivative instruments
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$
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122,425
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Commodity derivatives - noncurrent
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Derivative instruments
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362,169
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Derivative instruments
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313,909
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Total asset derivatives
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607,432
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436,334
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Liability derivatives not designated as hedges for accounting purposes:
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Commodity derivatives - current
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Derivative instruments
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532
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Derivative instruments
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3,894
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Commodity derivatives - noncurrent
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Derivative instruments
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—
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Derivative instruments
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—
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Total liability derivatives
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532
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3,894
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Net derivatives
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$
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606,900
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$
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432,440
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| 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):
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December 31, 2018
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March 31, 2019
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Gross
amounts on
balance sheet
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Gross amounts
offset on
balance sheet
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Net amounts
of assets (liabilities) on
balance sheet
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Gross
amounts on
balance sheet
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Gross amounts
offset on
balance sheet
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Net amounts
of assets (liabilities) on
balance sheet
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Commodity derivative assets
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$
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658,830
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(51,398)
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607,432
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$
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459,928
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(23,594)
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436,334
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Commodity derivative liabilities
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$
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(51,930)
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51,398
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(532)
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$
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(27,488)
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23,594
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(3,894)
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| 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):
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Statement of
operations
|
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Three months ended March 31,
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location
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2018
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2019
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Commodity derivative fair value gains (losses)
|
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Revenue
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22,437
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(77,368)
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Marketing derivative fair value gains
|
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Revenue
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94,234
|
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—
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