Quarterly report pursuant to Section 13 or 15(d)

DERIVATIVE INSTRUMENTS AND PRICE RISK MANAGEMENT (Tables)

v3.21.2
DERIVATIVE INSTRUMENTS AND PRICE RISK MANAGEMENT (Tables)
6 Months Ended
Jun. 30, 2021
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
June 30,
Six Months Ended
June 30,
(In thousands) 2021 2020 2021 2020
Cash Received (Paid) on Settled Derivatives $ (27,855) $ 77,439  $ (35,152) $ 108,944 
Non-Cash Mark-to-Market Gain (Loss) on Derivatives (173,057) (150,077) (301,695) 194,999 
Gain (Loss) on Commodity Derivatives, Net $ (200,912) $ (72,638) $ (336,847) $ 303,943 
Summary of Open Commodity Derivative Positions The following table summarizes open commodity derivative positions as of June 30, 2021, for commodity derivatives that were entered into through June 30, 2021, for the settlement period presented:
2021 2022 2023 2024
Oil:
WTI NYMEX - Swaps:
Volume (Bbl) 4,397,966  6,359,355  677,250  — 
Weighted-Average Price ($/Bbl) $ 54.45  $ 54.89  $ 58.66  $ — 
WTI NYMEX - Swaptions(1):
Volume (Bbl) —  766,125  3,691,000  — 
Weighted-Average Price ($/Bbl) $ —  $ 55.15  $ 50.31  $ — 
Bakken Crude UHC to WTI NYMEX - Basis Swaps:
Volume (Bbl) 2,631,870  —  —  — 
Weighted-Average Price ($/Bbl) $ (2.47) $ —  $ —  $ — 
WTI NYMEX - Call Options(1):
Volume (Bbl) —  —  365,000  3,264,210 
Weighted-Average Price ($/Bbl) $ —  $ —  $ 55.00  $ 57.22 
Natural Gas:
Henry Hub NYMEX - Swaps:
Volume (MMBtu) 14,728,136  13,897,291  —  — 
Weighted-Average Price ($/MMBtu) $ 2.82  $ 2.94  $ —  $ — 
Waha Inside FERC to Henry Hub - Basis Swaps:
Volume (MMBtu) 191,000  365,000  —  — 
Weighted-Average Differential ($/MMBtu) $ (0.11) $ (0.26) $ —  $ — 
Columbia/TCO-POOL - Basis Swaps:
Volume (MMBtu) 1,137,845  1,067,187  —  — 
Weighted-Average Differential ($/MMBtu) $ (0.45) $ (0.43) $ —  $ — 
Dominion - App - Basis Swaps:
Volume (MMBtu) 379,281  355,729  —  — 
Weighted-Average Differential ($/MMBtu) $ (0.65) $ (0.64) $ —  $ — 
NE - TETCO M2 - Basis Swaps:
Volume (MMBtu) 4,505,901  5,639,374  1,350,000  — 
Weighted-Average Differential ($/MMBtu) $ (0.76) $ (0.78) $ (0.83) $ — 
NGL:
TET-OPIS - Swaps:
Volume (Bbl) 61,500  —  —  — 
Weighted-Average Price ($/Bbl) $ 34.34  $ —  $ —  $ — 
______________
(1)Swaptions are crude oil derivative contracts that give counterparties the option to extend certain derivative contracts for additional periods. Call Options are crude oil derivative contracts sold by the Company that give counterparties the option to exercise certain derivative contracts. The volumes and prices reflected as Swaptions and Call Options in this table will only be effective if the options are exercised by the applicable counterparties.
Summary of Classification of Outstanding Financial Instruments
The following table sets forth the amounts, on a gross basis, and classification of the Company’s outstanding derivative financial instruments at June 30, 2021 and December 31, 2020, 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 Commodity Balance Sheet Location June 30, 2021 Estimated Fair Value December 31, 2020 Estimated Fair Value
Derivative Assets:   (In thousands)
Commodity Price Swap Contracts Current Assets $ 24  $ 52,702 
Commodity Basis Swap Contracts Current Assets 1,977  37 
Commodity Price Swaptions Contracts Current Assets 1,110  — 
Commodity Price Swap Contracts Noncurrent Assets 57  3,479 
Commodity Basis Swap Contracts Noncurrent Assets 342  — 
Commodity Price Swaptions Contracts Noncurrent Assets 1,127  — 
Interest Rate Swap Contracts Noncurrent Assets — 
Total Derivative Assets   $ 4,642  $ 56,218 
Derivative Liabilities:      
Commodity Price Swap Contracts Current Liabilities $ (130,278) $ (3,434)
Commodity Basis Swap Contracts Current Liabilities (6,174) (519)
Commodity Price Swaptions Contracts Current Liabilities (6,278) — 
Interest Rate Swap Contracts Current Liabilities (558) (574)
Commodity Price Swap Contracts Noncurrent Liabilities (32,345) (399)
Interest Rate Swap Contracts Noncurrent Liabilities (105) (445)
Commodity Basis Swap Contracts Noncurrent Liabilities (342) — 
Commodity Price Call Option Contracts Noncurrent Liabilities (36,206) — 
Commodity Price Swaptions Contracts Noncurrent Liabilities (60,028) (17,184)
Total Derivative Liabilities   $ (272,312) $ (22,554)
The amounts presented exclude derivative settlement receivables and payables as of the balance sheet dates.
  Estimated Fair Value at June 30, 2021
(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 $ 3,111  $ (2,593) $ 518 
Non-Current Assets 1,531  (1,499) 32 
Total Derivative Assets $ 4,642  $ (4,092) $ 550 
Offsetting of Derivative Liabilities:  
Current Liabilities $ (143,287) $ 2,593  $ (140,694)
Non-Current Liabilities (129,025) 1,499  (127,526)
Total Derivative Liabilities $ (272,312) $ 4,092  $ (268,220)
  Estimated Fair Value at December 31, 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 $ 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)