Quarterly report pursuant to Section 13 or 15(d)

Derivative Instruments (Tables)

v3.10.0.1
Derivative Instruments (Tables)
6 Months Ended
Jun. 30, 2018
Derivative Instruments.  
Schedule of outstanding commodity derivatives

As of June 30, 2018, the Company’s fixed price natural gas, NGLs, and oil swap positions from July 1, 2018 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; 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 September 30, 2018:

 

 

 

 

 

 

 

 

 

 

NYMEX ($/MMBtu)

 

2,002,500

 

 —

 

 —

 

$

3.45

 

NYMEX-WTI ($/Bbl)

 

 —

 

6,000

 

 —

 

$

56.99

 

Mont Belvieu-Propane ($/Gallon)

 

 —

 

 —

 

26,000

 

$

0.76

 

Total

 

2,002,500

 

6,000

 

26,000

 

 

 

 

Three months ending December 31, 2018:

 

 

 

 

 

 

 

 

 

 

NYMEX ($/MMBtu)

 

2,002,500

 

 —

 

 —

 

$

3.53

 

NYMEX-WTI ($/Bbl)

 

 —

 

6,000

 

 —

 

$

56.99

 

Mont Belvieu-Propane ($/Gallon)

 

 —

 

 —

 

26,000

 

$

0.77

 

Total

 

2,002,500

 

6,000

 

26,000

 

 

 

 

Year ending December 31, 2019:

 

 

 

 

 

 

 

 

 

 

NYMEX ($/MMBtu)

 

2,330,000

 

 

 

 

 

$

3.50

 

Year ending December 31, 2020:

 

 

 

 

 

 

 

 

 

 

NYMEX ($/MMBtu)

 

1,417,500

 

 

 

 

 

$

3.25

 

Year ending December 31, 2021:

 

 

 

 

 

 

 

 

 

 

NYMEX ($/MMBtu)

 

710,000

 

 

 

 

 

$

3.00

 

Year ending December 31, 2022:

 

 

 

 

 

 

 

 

 

 

NYMEX ($/MMBtu)

 

850,000

 

 

 

 

 

$

3.00

 

Year ending December 31, 2023:

 

 

 

 

 

 

 

 

 

 

NYMEX ($/MMBtu)

 

90,000

 

 

 

 

 

$

2.91

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

  

December 31, 2017

  

June 30, 2018

 

 

  

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

 

$

460,685

  

Derivative instruments

 

$

420,842

 

Commodity derivatives - noncurrent

 

Derivative instruments

 

 

841,257

  

Derivative instruments

 

 

763,592

 

 

 

 

 

 

 

 

 

 

 

 

 

Total asset derivatives

 

 

 

 

1,301,942

 

 

 

 

1,184,434

 

 

 

 

 

 

 

 

 

 

 

 

 

Liability derivatives not designated as hedges for accounting purposes:

 

 

 

 

 

 

 

 

 

 

 

Marketing derivatives - current

 

Derivative instruments

 

 

21,394

  

Derivative instruments

 

 

21,428

 

Commodity derivatives - current

 

Derivative instruments

 

 

7,082

  

Derivative instruments

 

 

9,233

 

Commodity derivatives - noncurrent

 

Derivative instruments

 

 

207

  

Derivative instruments

 

 

 —

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liability derivatives

 

 

 

 

28,683

 

 

 

 

30,661

 

 

 

 

 

 

 

 

 

 

 

 

 

Net derivatives

 

 

 

$

1,273,259

 

 

 

$

1,153,773

 

 

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, 2017

 

June 30, 2018

 

 

 

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

 

$

1,367,554

 

 

(65,612)

 

 

1,301,942

 

$

1,242,069

 

 

(57,635)

 

 

1,184,434

 

Commodity derivative liabilities

 

$

(72,901)

 

 

65,612

 

 

(7,289)

 

$

(66,868)

 

 

57,635

 

 

(9,233)

 

Marketing derivative assets

 

$

311,083

 

 

(311,083)

 

 

 —

 

$

 —

 

 

 —

 

 

 —

 

Marketing derivative liabilities

 

$

(332,477)

 

 

311,083

 

 

(21,394)

 

$

(21,428)

 

 

 —

 

 

(21,428)

 

 

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 condensed consolidated statements of operations for the three and six months ended June 30, 2017 and 2018 (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statement of
operations

 

Three months ended June 30,

 

Six months ended June 30,

 

 

 

location

 

2017

 

2018

 

2017

 

2018

 

Commodity derivative fair value gains

 

Revenue

 

$

85,641

 

 

55,336

 

$

524,416

 

 

77,773

 

Marketing derivative fair value gains (losses)

 

Revenue

 

$

 —

 

 

(110)

 

$

 —

 

 

94,124