Quarterly report pursuant to Section 13 or 15(d)

Derivative Instruments (Tables)

v3.7.0.1
Derivative Instruments (Tables)
3 Months Ended
Mar. 31, 2017
Schedule of outstanding commodity derivatives

As of March 31, 2017, the Company’s fixed price natural gas and NGLs swap positions from April 1, 2017 through December 31, 2023 were as follows (abbreviations in the table refer to the index to which the swap position is tied, as follows: NYMEX=Henry Hub; CGTLA=Columbia Gas Louisiana Onshore; CCG=Chicago City Gate; Mont Belvieu-Ethane=Mont Belvieu Purity Ethane; Mont Belvieu-Propane=Mont Belvieu Propane; NYMEX-WTI=West Texas Intermediate):

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas
MMbtu/day

 

Oil
Bbls/day

 

Natural Gas
Liquids
Bbls/day

 

Weighted
average index
price

 

Three months ending June 30, 2017:

 

 

 

 

 

 

 

 

 

 

NYMEX ($/MMBtu)

 

1,370,000

 

 —

 

 —

 

$

3.26

 

CGTLA ($/MMBtu)

 

420,000

 

 —

 

 —

 

$

4.13

 

CCG ($/MMBtu)

 

70,000

 

 —

 

 —

 

$

4.38

 

NYMEX-WTI ($/Bbl)

 

 —

 

3,000

 

 —

 

$

54.75

 

Mont Belvieu-Ethane ($/Gallon)

 

 —

 

 —

 

20,000

 

$

0.25

 

Mont Belvieu-Propane ($/Gallon)

 

 —

 

 —

 

27,500

 

$

0.38

 

Total

 

1,860,000

 

3,000

 

47,500

 

 

 

 

Three months ending September 30, 2017:

 

 

 

 

 

 

 

 

 

 

NYMEX ($/MMBtu)

 

1,370,000

 

 —

 

 —

 

$

3.33

 

CGTLA ($/MMBtu)

 

420,000

 

 —

 

 —

 

$

4.20

 

CCG ($/MMBtu)

 

70,000

 

 —

 

 —

 

$

4.45

 

NYMEX-WTI ($/Bbl)

 

 —

 

3,000

 

 —

 

$

54.75

 

Mont Belvieu-Ethane ($/Gallon)

 

 —

 

 —

 

20,000

 

$

0.25

 

Mont Belvieu-Propane ($/Gallon)

 

 —

 

 —

 

27,500

 

$

0.39

 

Total

 

1,860,000

 

3,000

 

47,500

 

 

 

 

Three months ending December 31, 2017:

 

 

 

 

 

 

 

 

 

 

NYMEX ($/MMBtu)

 

1,370,000

 

 —

 

 —

 

$

3.46

 

CGTLA ($/MMBtu)

 

420,000

 

 —

 

 —

 

$

4.37

 

CCG ($/MMBtu)

 

70,000

 

 —

 

 —

 

$

4.68

 

NYMEX-WTI ($/Bbl)

 

 —

 

3,000

 

 —

 

$

54.75

 

Mont Belvieu-Ethane ($/Gallon)

 

 —

 

 —

 

20,000

 

$

0.25

 

Mont Belvieu-Propane ($/Gallon)

 

 —

 

 —

 

27,500

 

$

0.40

 

Total

 

1,860,000

 

3,000

 

47,500

 

 

 

 

Year ending December 31, 2018:

 

 

 

 

 

 

 

 

 

 

NYMEX ($/MMBtu)

 

2,002,500

 

 

 

 —

 

$

3.91

 

Mont Belvieu-Propane ($/Gallon)

 

 —

 

 

 

2,000

 

$

0.65

 

Total

 

2,002,500

 

 

 

2,000

 

 

 

 

Year ending December 31, 2019:

 

 

 

 

 

 

 

 

 

 

NYMEX ($/MMBtu)

 

2,330,000

 

 

 

 

 

$

3.70

 

Year ending December 31, 2020:

 

 

 

 

 

 

 

 

 

 

NYMEX ($/MMBtu)

 

1,417,500

 

 

 

 

 

$

3.63

 

Year ending December 31, 2021:

 

 

 

 

 

 

 

 

 

 

NYMEX ($/MMBtu)

 

710,000

 

 

 

 

 

$

3.31

 

Year ending December 31, 2022:

 

 

 

 

 

 

 

 

 

 

NYMEX ($/MMBtu)

 

810,000

 

 

 

 

 

$

3.18

 

Year ending December 31, 2023:

 

 

 

 

 

 

 

 

 

 

NYMEX ($/MMBtu)

 

50,000

 

 

 

 

 

$

2.83

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2016

 

March 31, 2017

 

 

 

Balance sheet
location

    

Fair value

 

Balance sheet
location

 

Fair value

 

 

 

 

 

(In thousands)

 

 

 

(In thousands)

 

Asset derivatives not designated as hedges for accounting purposes:

 

 

 

 

 

 

 

 

 

 

 

Commodity contracts

 

Current assets

 

$

73,022

 

Current assets

 

 

237,086

 

Commodity contracts

 

Long-term assets

 

 

1,731,063

 

Long-term assets

 

 

1,811,435

 

 

 

 

 

 

 

 

 

 

 

 

 

Total asset derivatives

 

 

 

 

1,804,085

 

 

 

 

2,048,521

 

 

 

 

 

 

 

 

 

 

 

 

 

Liability derivatives not designated as hedges for accounting purposes:

 

 

 

 

 

 

 

 

 

 

 

Commodity contracts

 

Current liabilities

 

 

203,635

 

Current liabilities

 

 

54,277

 

Commodity contracts

 

Long-term liabilities

 

 

234

 

Long-term liabilities

 

 

102

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liability derivatives

 

 

 

 

203,869

 

 

 

 

54,379

 

 

 

 

 

 

 

 

 

 

 

 

 

Net derivatives

 

 

 

$

1,600,216

 

 

 

 

1,994,142

 

 

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 amounts 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, 2016

 

March 31, 2017

 

 

 

Gross
amounts on
balance sheet

 

Gross amounts
offset on
balance sheet

 

Net amounts

of assets 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

 

$

1,914,245

 

 

(110,160)

 

 

1,804,085

 

$

2,136,955

 

 

(88,434)

 

 

2,048,521

 

Commodity derivative liabilities

 

$

(324,667)

 

 

120,798

 

 

(203,869)

 

$

(113,718)

 

 

59,339

 

 

(54,379)

 

 

Summary of derivative fair value gains (losses)

The following is a summary of derivative fair value gains and where such values are recorded in the condensed consolidated statements of operations for the three months ended March 31, 2016 and 2017 (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

Statement of
operations

 

Three months ended March 31,

 

 

 

location

 

2016

 

2017

 

Commodity derivative fair value gains

 

Revenue

 

$

279,924

 

 

438,775

 

 

TCOminusNYMEX  
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
MMbtu/day

 

Hedged Differential

($/MMBtu)

 

 

 

 

 

 

 

 

Nine months ending December 31, 2017:

 

125,000

 

$

(0.49)

 

 

NYMEXminusTCO  
Tabular disclosure of pertinent information about 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
MMbtu/day

 

Hedged Differential

($/MMBtu)

 

 

 

 

 

 

 

 

Nine months ending December 31, 2017:

 

125,000

 

$

0.32