Annual report pursuant to Section 13 and 15(d)

DERIVATIVE INSTRUMENTS AND PRICE RISK MANAGEMENT (Tables)

v3.20.4
DERIVATIVE INSTRUMENTS AND PRICE RISK MANAGEMENT (Tables)
12 Months Ended
Dec. 31, 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 financial statements:

  Year ended December 31,
(In thousands) 2020 2019 2018
Gain (Loss) on Settled Commodity Derivatives $ 188,264  $ 44,377  $ (22,886)
Gain (Loss) on Unsettled Commodity Derivatives 39,878  (173,214) 207,892 
Gain (Loss) on Derivative Instruments, Net $ 228,141  $ (128,837) $ 185,006 
Schedule of weighted average price of open commodity derivative contracts The following table summarizes open commodity derivative positions as of December 31, 2020, for commodity derivatives that were entered into through December 31, 2020, for the settlement period presented:
2021 2022 2023
Oil:
WTI NYMEX - Swaps:
Volume (Bbl) 7,545,124  816,250  — 
Weighted-Average Price ($/Bbl) $ 55.06  $ 50.49  $ — 
WTI NYMEX - Swaptions(1):
Volume (Bbl) —  3,131,125  1,455,000 
Weighted-Average Price ($/Bbl) $ —  $ 52.68  $ 47.98 
Bakken Crude UHC to WTI NYMEX - Basis Swaps:
Volume (Bbl) 1,523,750  —  — 
Weighted-Average Price ($/Bbl) $ (2.39) $ —  $ — 
Natural Gas:
Henry Hub NYMEX - Swaps:
Volume (MMBtu) 13,000,000  3,650,000  — 
Weighted-Average Price ($/MMBtu) $ 2.50  $ 2.61  $ — 
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.
Schedule of derivatives
The following table sets forth the amounts, on a gross basis, and classification of the Company’s outstanding derivative financial instruments at December 31, 2020 and 2019, respectively.  Certain amounts may be presented on a net basis in the financial statements when such amounts are with the same counterparty and subject to a master netting arrangement:

December 31,
Estimated Fair Value
Type of Commodity Derivative Contract Balance Sheet Location 2020 2019
Derivative Assets: (In thousands)
Commodity Price Swap Contracts Current Assets $ 52,702  $ 20,164 
Commodity Basis Swap Contracts Current Assets 37  — 
Commodity Price Swap Contracts Noncurrent Assets 3,479  16,069 
Total Derivative Assets $ 56,218  $ 36,233 
Derivative Liabilities:
Commodity Price Swap Contracts Current Liabilities $ (3,434) $ (25,834)
Commodity Basis Swap Contracts Current Liabilities (519) — 
Interest Rate Swap Contracts Current Liabilities (574) — 
Commodity Price Swap Contracts Noncurrent Liabilities (399) (5,273)
Interest Rate Swap Contracts Noncurrent Liabilities (445) — 
Commodity Price Swaptions Contracts Noncurrent Liabilities (17,184) (10,321)
Total Derivative Liabilities $ (22,554) $ (41,428)

The use of derivative transactions involves the risk that the counterparties will be unable to meet the financial terms of such transactions.  When the Company has netting arrangements with its counterparties that provide for offsetting payables against receivables from separate derivative instruments these assets and liabilities are netted in the balance sheet. The tables presented below provide reconciliation between the gross assets and liabilities and the amounts reflected in the balance sheet. The amounts presented exclude derivative settlement receivables and payables as of the balance sheet dates.

  Estimated Fair Value at December 31, 2020
(In thousands) Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset in the
Balance Sheet
Net Amounts of Assets (Liabilities) Presented in the Balance Sheet
Offsetting of Derivative Assets:
Current Assets $ 52,739  $ (1,449) $ 51,290 
Non-Current Assets 3,479  (3,369) 111 
Total Derivative Assets $ 56,218  $ (4,817) $ 51,401 
Offsetting of Derivative Liabilities:  
Current Liabilities $ (4,527) $ 1,449  $ (3,078)
Non-Current Liabilities (18,028) 3,369  (14,659)
Total Derivative Liabilities $ (22,554) $ 4,817  $ (17,737)
  Estimated Fair Value at December 31, 2019
(In thousands) Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset in 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)