Quarterly report pursuant to Section 13 or 15(d)

DERIVATIVE INSTRUMENTS AND PRICE RISK MANAGEMENT (Tables)

v3.20.2
DERIVATIVE INSTRUMENTS AND PRICE RISK MANAGEMENT (Tables)
9 Months Ended
Sep. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of non-cash gains or losses on derivative contracts
The following table presents settlements on commodity derivative instruments and unsettled gains and losses on open commodity derivative instruments for the periods presented which is recorded in the revenue section of our condensed financial statements:
  Three Months Ended
September 30,
Nine Months Ended
September 30,
(In thousands) 2020 2019 2020 2019
Gain on Settled Commodity Derivatives $ 43,837  $ 18,386  $ 152,782  $ 35,666 
Gain (Loss) on Unsettled Commodity Derivatives (70,198) 57,506  124,800  (62,806)
Gain (Loss) on Commodity Derivatives, Net $ (26,361) $ 75,892  $ 277,582  $ (27,139)
Schedule of derivative positions
The following table summarizes open commodity derivative positions as of September 30, 2020, for commodity derivatives that were entered into through September 30, 2020, for the settlement period presented:

2020 2021 2022 2023
Oil:
WTI NYMEX - Swaps:
Volume (Bbl) 2,372,362  7,808,624  365,000  — 
Weighted-Average Price ($/Bbl) $ 58.03  $ 54.67  $ 50.05  $ — 
WTI NYMEX - Swaptions(1):
Volume (Bbl) —  318,250  3,131,125  1,095,000 
Weighted-Average Price ($/Bbl) $ —  $ 57.84  $ 52.68  $ 46.59 
Natural Gas:
Henry Hub NYMEX - Swaps:
Volume (MMBtu) 2,760,000  13,000,000  1,825,000  — 
Weighted-Average Price ($/MMBtu) $ 2.44  $ 2.50  $ 2.53  $ — 
Waha Inside FERC to Henry Hub - Basis Swaps:
Volume (MMBtu) —  69,000  —  — 
Weighted-Average Differential ($/MMBtu) $ —  $ (0.28) $ —  $ — 
______________
(1)Swaptions are crude oil derivative contracts that give counterparties the option to extend certain derivative contracts for additional periods. The volumes and prices reflected as Swaptions in this table will only be effective if the options are exercised by the applicable counterparties.
Summary of open commodity derivative financial instruments The following table sets forth the amounts, on a gross basis, and classification of the Company’s outstanding derivative financial instruments at September 30, 2020 and December 31, 2019, respectively.  Certain amounts may be presented on a net basis on the condensed financial statements when such amounts are with the same counterparty and subject to a master netting arrangement.
Type of Contract Balance Sheet Location September 30, 2020 Estimated Fair Value December 31, 2019 Estimated Fair Value
Derivative Assets:   (In thousands)
Commodity Price Swap Contracts Current Assets $ 119,468  $ 20,164 
Interest Rate Swap Contracts Current Assets —  — 
Commodity Price Swap Contracts Noncurrent Assets 6,826  16,069 
Interest Rate Swap Contracts Noncurrent Assets —  — 
Total Derivative Assets   $ 126,294  $ 36,233 
Derivative Liabilities:      
Commodity Price Swap Contracts Current Liabilities $ (4,908) $ (25,834)
Interest Rate Swap Contracts Current Liabilities (530) — 
Commodity Price Swap Contracts Noncurrent Liabilities (1,781) (5,273)
Interest Rate Swap Contracts Noncurrent Liabilities (675) — 
Commodity Price Swaptions Contracts Noncurrent Liabilities —  (10,321)
Total Derivative Liabilities   $ (7,894) $ (41,428)
The amounts presented exclude derivative settlement receivables and payables as of the balance sheet dates.
  Estimated Fair Value at September 30, 2020
(In thousands) Gross Amounts of
Recognized Assets (Liabilities)
Gross Amounts Offset
on the Balance Sheet
Net Amounts of Assets (Liabilities) Presented in the Balance Sheet
Offsetting of Derivative Assets:  
Current Assets $ 122,167  $ (2,699) $ 119,468 
Noncurrent Assets 17,166  (10,340) 6,826 
Total Derivative Assets $ 139,333  $ (13,039) $ 126,294 
Offsetting of Derivative Liabilities:  
Current Liabilities $ (5,438) $ —  $ (5,438)
Noncurrent Liabilities (15,495) 13,039  (2,456)
Total Derivative Liabilities $ (20,933) $ 13,039  $ (7,894)
  Estimated Fair Value at December 31, 2019
 (In thousands) Gross Amounts of
Recognized Assets (Liabilities)
Gross Amounts Offset
on the Balance Sheet
Net Amounts of Assets (Liabilities) Presented in the Balance Sheet
Offsetting of Derivative Assets:  
Current Assets $ 20,164  $ (14,536) $ 5,628 
Non-Current Assets 16,069  (7,515) 8,554 
Total Derivative Assets $ 36,233  $ (22,051) $ 14,182 
Offsetting of Derivative Liabilities:  
Current Liabilities $ (25,834) $ 14,536  $ (11,298)
Non-Current Liabilities (15,594) 7,515  (8,079)
Total Derivative Liabilities $ (41,428) $ 22,051  $ (19,377)