Quarterly report pursuant to Section 13 or 15(d)

DERIVATIVE INSTRUMENTS AND PRICE RISK MANAGEMENT (Tables)

v3.10.0.1
DERIVATIVE INSTRUMENTS AND PRICE RISK MANAGEMENT (Tables)
6 Months Ended
Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of non-cash gains or losses on derivative contracts
The following table presents cash settlements on matured or liquidated derivative instruments and non-cash gains and losses on open derivative instruments for the periods presented.  Cash receipts and payments below reflect proceeds received upon early liquidation of derivative positions and gains or losses on derivative contracts which matured during the period, calculated as the difference between the contract price and the market settlement price of matured contracts.  Non-cash gains and losses below represent the change in fair value of derivative instruments which continue to be held at period-end and the reversal of previously recognized non-cash gains or losses on derivative contracts that matured or were liquidated during the period.
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2018
 
2017
 
2018
 
2017
Cash Received (Paid) on Settled Derivatives
$
(12,266,857
)
 
$
2,341,030

 
$
(20,396,994
)
 
$
2,245,371

Non-Cash Mark-to-Market Gain (Loss) on Derivatives
(29,935,931
)
 
14,172,002

 
(42,077,245
)
 
31,228,544

Gain (Loss) on Derivative Instruments, Net
$
(42,202,788
)
 
$
16,513,032

 
$
(62,474,239
)
 
$
33,473,915


Schedule of weighted average price of open commodity derivative contracts
The following table reflects the weighted average price of open commodity swap derivative contracts as of June 30, 2018, by year with associated volumes.

Year
 
Volumes (Bbl)
 
Weighted
Average Price ($)
2018
 
2,003,660

 
57.83

2019
 
3,160,000

 
55.85

2020
 
1,730,980

 
52.55

2021 and beyond
 
631,600

 
55.67

Derivatives instruments balance sheet location
The following table sets forth the amounts, on a gross basis, and classification of the Company’s outstanding derivative financial instruments at June 30, 2018 and December 31, 2017, 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 Crude Oil Contract
 
Balance Sheet Location
 
June 30, 2018 Estimated Fair Value
 
December 31, 2017 Estimated Fair Value
Derivative Liabilities:
 
 
 
 

 
 

Swap Contracts
 
Current Liabilities
 
$
(43,644,644
)
 
$
(18,681,891
)
Swap Contracts
 
Noncurrent Liabilities
 
(28,611,421
)
 
(11,496,929
)
Total Derivative Liabilities
 
 
 
$
(72,256,065
)
 
$
(30,178,820
)
Reconciliation between gross assets and liabilities and the amounts reflected on balance sheet
The tables presented below provide reconciliation between the gross assets and liabilities and the amounts reflected on the balance sheet.  The amounts presented exclude derivative settlement receivables and payables as of the balance sheet dates.

 
Estimated Fair Value at June 30, 2018
 
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
$
12,921

 
$
(12,921
)
 
$

Noncurrent Assets
13,659

 
(13,659
)
 

Total Derivative Assets
$
26,580

 
$
(26,580
)
 
$

 
 
 
 
 
 
Offsetting of Derivative Liabilities:
 
 

Current Liabilities
$
(43,657,565
)
 
$
12,921

 
$
(43,644,644
)
Noncurrent Liabilities
(28,625,080
)
 
13,659

 
(28,611,421
)
Total Derivative Liabilities
$
(72,282,645
)
 
$
26,580

 
$
(72,256,065
)

 
Estimated Fair Value at December 31, 2017
 
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
$

 
$

 
$

Non-Current Assets

 

 

Total Derivative Assets
$

 
$

 
$

 
 
 
 
 
 
Offsetting of Derivative Liabilities:
 
 

Current Liabilities
$
(18,681,891
)
 
$

 
$
(18,681,891
)
Non-Current Liabilities
(11,496,929
)
 

 
(11,496,929
)
Total Derivative Liabilities
$
(30,178,820
)
 
$

 
$
(30,178,820
)