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 March 31, |
|
|
|
|
|
|
(In thousands) |
2019 |
|
2018 |
|
|
|
|
Cash Received (Paid) on Settled Derivatives |
$ |
12,546 |
|
$ |
(8,130) |
|
|
|
|
Non-Cash Mark-to-Market Loss on Derivatives |
(152,169) |
|
(12,141) |
|
|
|
|
Gain (Loss) on Derivative Instruments, Net |
$ |
(139,623) |
|
$ |
(20,271) |
|
|
|
|
|
Schedule of weighted average price of open commodity derivative contracts |
The following table reflects the weighted average price of open commodity price swap derivative contracts as of March 31, 2019, by year with associated volumes.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year |
|
Volumes (Bbl) |
|
Weighted Average Price ($) |
2019 |
|
5,535,030 |
|
$ |
63.16 |
2020 |
|
6,428,580 |
|
59.29 |
2021 |
|
2,678,850 |
|
58.16 |
2022 and beyond |
|
135,000 |
|
55.00 |
|
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 March 31, 2019 and December 31, 2018, 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 |
|
March 31, 2019 Estimated Fair Value |
|
December 31, 2018 Estimated Fair Value |
Derivative Assets: |
|
|
|
(In thousands) |
|
|
Swap Price Contracts |
|
Current Assets |
|
$ |
17,973 |
|
$ |
108,514 |
Basis Swap Contracts |
|
Current Assets |
|
606 |
|
$ |
7,356 |
Swap Price Contracts |
|
Noncurrent Assets |
|
17,839 |
|
$ |
61,843 |
|
|
|
|
|
|
|
Total Derivative Assets |
|
|
|
$ |
36,417 |
|
$ |
177,713 |
|
|
|
|
|
|
|
Derivative Liabilities: |
|
|
|
|
|
|
Swap Price Contracts |
|
Current Liabilities |
|
$ |
(5,882) |
|
$ |
— |
|
|
|
|
|
|
|
Swap Price Contracts |
|
Noncurrent Liabilities |
|
(4,991) |
|
— |
|
|
|
|
|
|
|
Total Derivative Liabilities |
|
|
|
$ |
(10,873) |
|
$ |
— |
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 on the 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 March 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 |
$ |
31,558 |
|
$ |
(12,980) |
|
$ |
18,578 |
Noncurrent Assets |
25,950 |
|
(8,111) |
|
17,839 |
Total Derivative Assets |
$ |
57,508 |
|
$ |
(21,091) |
|
$ |
36,417 |
|
|
|
|
|
|
Offsetting of Derivative Liabilities: |
|
|
|
|
|
Current Liabilities |
$ |
(18,862) |
|
$ |
12,980 |
|
$ |
(5,882) |
Noncurrent Liabilities |
(13,102) |
|
8,111 |
|
(4,991) |
Total Derivative Liabilities |
$ |
(31,964) |
|
$ |
21,091 |
|
$ |
(10,873) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated Fair Value at December 31, 2018 |
|
|
|
|
(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 |
$ |
116,620 |
|
$ |
(750) |
|
$ |
115,870 |
Non-Current Assets |
61,857 |
|
(14) |
|
61,843 |
Total Derivative Assets |
$ |
178,477 |
|
$ |
(764) |
|
$ |
177,713 |
|
|
|
|
|
|
Offsetting of Derivative Liabilities: |
|
|
|
|
|
Current Liabilities |
$ |
(750) |
|
$ |
750 |
|
$ |
— |
Non-Current Liabilities |
(14) |
|
14 |
|
— |
Total Derivative Liabilities |
$ |
(764) |
|
$ |
764 |
|
$ |
— |
|