Quarterly report pursuant to Section 13 or 15(d)

Derivative Instruments (Tables)

v3.19.2
Derivative Instruments (Tables)
6 Months Ended
Jun. 30, 2019
Derivative Instruments.  
Schedule of outstanding commodity derivatives

Natural gas

MMBtu/day

Oil
Bbls/day

Natural Gas
Liquids
MT/day

Weighted
average index
price

Three months ending September 30, 2019:

NYMEX ($/MMBtu)

755,000

$

3.32

NYMEX-WTI($/Bbl)

5,000

61.83

Argus Butane ARA ($/MT)

242

330.25

Argus Butane FEI ($/MT)

24

370.00

Argus Propane ARA ($/MT)

484

328.17

Argus Propane FEI ($/MT)

274

383.41

Total

755,000

5,000

1,024

Three months ending December 31, 2019:

NYMEX ($/MMBtu)

755,000

$

3.45

NYMEX-WTI($/Bbl)

5,000

61.83

Total

755,000

5,000

Year ending December 31, 2020:

NYMEX ($/MMBtu)

2,227,500

$

2.87

NYMEX-WTI($/Bbl)

5,000

59.03

Total

2,227,500

5,000

Year ending December 31, 2021:

NYMEX ($/MMBtu)

1,010,000

$

2.88

Year ending December 31, 2022:

NYMEX ($/MMBtu)

850,000

$

3.00

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 TCO to NYMEX

As of June 30, 2019, the Company’s natural gas basis swap positions, which settle on the pricing index to basis differential of TCO to the NYMEX Henry Hub natural gas price were as follows:

Natural gas

Hedged

MMBtu/day

differential

Year ending December 31, 2020:

60,000

$

0.353

Year ending December 31, 2021:

40,000

$

0.414

Year ending December 31, 2022:

60,000

$

0.515

Year ending December 31, 2023:

50,000

$

0.525

Year ending December 31, 2024:

50,000

$

0.530

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 June 30, 2019, the Company’s fixed price natural gas collar positions from July 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 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

June 30, 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

$

346,894

Commodity derivatives - noncurrent

Derivative instruments

362,169

Derivative instruments

369,548

Total asset derivatives

607,432

716,442

Liability derivatives not designated as hedges for accounting purposes:

Commodity derivatives - current

Derivative instruments

532

Derivative instruments

274

Commodity derivatives - noncurrent

Derivative instruments

Derivative instruments

Total liability derivatives

532

274

Net derivatives

$

606,900

$

716,168

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

June 30, 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

$

729,664

 

(13,222)

 

716,442

Commodity derivative liabilities

$

(51,930)

 

51,398

 

(532)

$

(13,496)

 

13,222

 

(274)

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 June 30,

Six months ended June 30,

location

2018

2019

2018

2019

Commodity derivative fair value gains

Revenue

$

55,336

328,427

77,773

251,059

Marketing derivative fair value gains (losses)

Revenue

$

(110)

94,124