Derivative Instruments (Tables)
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12 Months Ended |
Dec. 31, 2019 |
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| Derivative Instruments. |
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| Schedule of outstanding commodity derivatives |
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Natural |
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Weighted |
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Natural gas |
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Gas Liquids |
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Oil |
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average index |
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MMBtu/day |
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Bbls/day |
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Bbls/day |
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price |
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Three months ending March 31, 2020: |
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|
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FEI Propane ($/Gal) |
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— |
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|
9,883 |
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|
— |
|
$ |
0.81 |
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Mont Belvieu Butane Non-TET ($/Gal) |
|
— |
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|
6,000 |
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|
— |
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|
0.50 |
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Mont Belvieu Propane Non-TET ($/Gal) |
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— |
|
|
1,500 |
|
|
— |
|
|
0.58 |
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Total |
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— |
|
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17,383 |
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— |
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Year ending December 31, 2020: |
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NYMEX ($/MMBtu) |
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2,227,500 |
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|
— |
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— |
|
$ |
2.87 |
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ARA Propane ($/Gal) |
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— |
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|
10,371 |
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— |
|
|
0.65 |
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NYMEX-WTI ($/Bbl) |
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— |
|
|
— |
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26,000 |
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|
55.63 |
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Total |
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2,227,500 |
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|
10,371 |
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|
26,000 |
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Year ending December 31, 2021: |
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NYMEX ($/MMBtu) |
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2,400,000 |
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|
|
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|
|
$ |
2.80 |
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Year ending December 31, 2023: |
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NYMEX ($/MMBtu) |
|
90,000 |
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$ |
2.91 |
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| Schedule of natural gas basis swap positions which settle on pricing index to basis differential of NYMEX to TCO |
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Natural Gas |
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Weighted |
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Natural Gas |
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Liquids |
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average hedged |
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MMBtu/day |
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Bbls/day |
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differential |
Three months ending March 31, 2020: |
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ARA to Mont Belvieu Non-TET ($/Gal) |
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|
|
2,670 |
|
$ |
0.24 |
Three months ending June 30, 2020: |
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|
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ARA to Mont Belvieu Non-TET ($/Gal) |
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|
|
1,602 |
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$ |
0.22 |
Year ending December 31, 2020: |
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NYMEX to TCO ($/MMBtu) |
|
60,000 |
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|
$ |
0.35 |
Year ending December 31, 2021: |
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NYMEX to TCO ($/MMBtu) |
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40,000 |
|
— |
|
$ |
0.41 |
Year ending December 31, 2022: |
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NYMEX to TCO ($/MMBtu) |
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60,000 |
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— |
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$ |
0.52 |
Year ending December 31, 2023: |
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NYMEX to TCO ($/MMBtu) |
|
50,000 |
|
— |
|
$ |
0.53 |
Year ending December 31, 2024: |
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|
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NYMEX to TCO ($/MMBtu) |
|
50,000 |
|
— |
|
$ |
0.53 |
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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. |
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Natural Gas |
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Weighted |
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Liquids |
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average payout |
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Bbls/day |
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ratio |
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|
Three months ending March 31, 2020: |
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Mont Belvieu Propane to NYMEX-WTI |
|
500 |
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50% |
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Year ending December 31, 2020: |
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Mont Belvieu Natural Gasoline to NYMEX-WTI |
|
18,800 |
|
80% |
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Year ending December 31, 2021: |
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Mont Belvieu Natural Gasoline to NYMEX-WTI |
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18,650 |
|
78% |
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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 |
|
December 31, 2019 |
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Balance sheet |
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Balance sheet |
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location |
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Fair value |
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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 |
|
$ |
245,263 |
|
Derivative instruments |
|
$ |
422,849 |
|
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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|
333,174 |
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Total asset derivatives |
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|
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607,432 |
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|
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|
756,023 |
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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 |
|
|
532 |
|
Derivative instruments |
|
|
6,721 |
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Commodity derivatives - noncurrent |
|
Derivative instruments |
|
|
— |
|
Derivative instruments |
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|
3,519 |
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Total liability derivatives |
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|
|
532 |
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|
|
|
10,240 |
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Net derivatives |
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|
|
$ |
606,900 |
|
|
|
$ |
745,783 |
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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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December 31, 2019 |
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Net amounts |
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Net amounts |
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Gross |
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Gross |
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of assets |
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Gross |
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Gross |
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of assets |
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amounts on |
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amounts offset on |
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(liabilities) on |
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amounts on |
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amounts offset on |
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(liabilities) on |
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balance sheet |
|
balance sheet |
|
balance sheet |
|
balance sheet |
|
balance sheet |
|
balance sheet |
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Commodity derivative assets |
|
$ |
658,830 |
|
|
(51,398) |
|
|
607,432 |
|
$ |
882,817 |
|
|
(126,794) |
|
|
756,023 |
|
Commodity derivative liabilities |
|
$ |
(51,930) |
|
|
51,398 |
|
|
(532) |
|
$ |
(137,034) |
|
|
126,794 |
|
|
(10,240) |
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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 consolidated statements of operations for the years ended December 31, 2017, 2018 and 2019 (in thousands):
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Statement of |
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|
operations |
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Year ended December 31, |
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|
location |
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2017 |
|
2018 |
|
2019 |
|
Commodity derivative fair value gains (losses) |
|
Revenue |
|
$ |
658,283 |
|
|
(87,594) |
|
|
463,972 |
|
Marketing derivative fair value gains (losses) |
|
Revenue |
|
$ |
(21,394) |
|
|
94,081 |
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|
— |
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