Annual report pursuant to Section 13 and 15(d)

Derivative Instruments (Tables)

v3.19.3.a.u2
Derivative Instruments (Tables)
12 Months Ended
Dec. 31, 2019
Derivative Instruments.  
Schedule of outstanding commodity derivatives

Natural

Weighted

Natural gas

Gas Liquids

Oil

average index

MMBtu/day

Bbls/day

Bbls/day

price

Three months ending March 31, 2020:

FEI Propane ($/Gal)

9,883

$

0.81

Mont Belvieu Butane Non-TET ($/Gal)

6,000

0.50

Mont Belvieu Propane Non-TET ($/Gal)

1,500

0.58

Total

17,383

Year ending December 31, 2020:

NYMEX ($/MMBtu)

2,227,500

$

2.87

ARA Propane ($/Gal)

10,371

0.65

NYMEX-WTI ($/Bbl)

26,000

55.63

Total

2,227,500

10,371

26,000

Year ending December 31, 2021:

NYMEX ($/MMBtu)

2,400,000

$

2.80

Year ending December 31, 2023:

NYMEX ($/MMBtu)

90,000

$

2.91

Schedule of natural gas basis swap positions which settle on pricing index to basis differential of NYMEX to TCO

Natural Gas

Weighted

Natural Gas

Liquids

average hedged

MMBtu/day

Bbls/day

differential

Three months ending March 31, 2020:

ARA to Mont Belvieu Non-TET ($/Gal)

2,670

$

0.24

Three months ending June 30, 2020:

ARA to Mont Belvieu Non-TET ($/Gal)

1,602

$

0.22

Year ending December 31, 2020:

NYMEX to TCO ($/MMBtu)

60,000

$

0.35

Year ending December 31, 2021:

NYMEX to TCO ($/MMBtu)

40,000

$

0.41

Year ending December 31, 2022:

NYMEX to TCO ($/MMBtu)

60,000

$

0.52

Year ending December 31, 2023:

NYMEX to TCO ($/MMBtu)

50,000

$

0.53

Year ending December 31, 2024:

NYMEX to TCO ($/MMBtu)

50,000

$

0.53

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.

Natural Gas

Weighted

Liquids

average payout

Bbls/day

ratio

Three months ending March 31, 2020:

Mont Belvieu Propane to NYMEX-WTI

500

50%

Year ending December 31, 2020:

Mont Belvieu Natural Gasoline to NYMEX-WTI

18,800

80%

Year ending December 31, 2021:

Mont Belvieu Natural Gasoline to NYMEX-WTI

18,650

78%

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

December 31, 2018

December 31, 2019

Balance sheet

Balance sheet

location

Fair value

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

$

422,849

Commodity derivatives - noncurrent

Derivative instruments

362,169

Derivative instruments

333,174

Total asset derivatives

607,432

756,023

Liability derivatives not designated as hedges for accounting purposes:

Commodity derivatives - current

Derivative instruments

532

Derivative instruments

6,721

Commodity derivatives - noncurrent

Derivative instruments

Derivative instruments

3,519

Total liability derivatives

532

10,240

Net derivatives

$

606,900

$

745,783

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

December 31, 2019

Net amounts

Net amounts

 

Gross

Gross

of assets

Gross

Gross

of assets

amounts on

amounts offset on

(liabilities) on

amounts on

amounts offset on

(liabilities) on

balance sheet

balance sheet

balance sheet

balance sheet

balance sheet

balance sheet

 

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)

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):

Statement of

operations

Year ended December 31,

location

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