Subsequent Events |
6 Months Ended |
|---|---|
Jun. 30, 2017 | |
| Subsequent Events [Abstract] | |
| Subsequent Events |
SUBSEQUENT EVENTS
Derivatives
In July and August 2017, the Company entered into fixed price swaps for 2017 for approximately 66,000 MMBtu of natural gas per day at a weighted average price of $3.08 per MMBtu. For 2018, the Company entered into fixed price swaps for approximately 105,000 MMBtu of natural gas per day at a weighted average price of $2.94 per MMBtu. The Company’s fixed price swap contracts are tied to the commodity prices on NYMEX. The Company will receive the fixed price amount stated in the contract and pay to its counterparty the current market price as listed on NYMEX for natural gas. In July and August 2017, the Company sold call options for 2019 for approximately 50,000 MMBtu of natural gas per day at a weighted average price of $3.04 per MMBtu. Each short call option has an established ceiling price. When the referenced settlement price is above the price ceiling established by these short call options, the Company pays its counterparty an amount equal to the difference between the referenced settlement price and the price ceiling multiplied by the hedged contract volumes.
Registration Rights Agreements
As required under the terms of the registration rights agreements relating to the 2024 Notes and the 2025 Notes, on July 7, 2017, the Company filed with the SEC a Registration Statement on Form S-4 (the “Registration Statement”), relating to the exchange offers of the 2024 Notes and the 2025 Notes for substantially identical notes registered under the Securities Act (the “Exchange Offers”). The Registration Statement was declared effective by the SEC on August 4, 2017. The Company commenced the Exchange Offers on August 8, 2017 and expects to close the Exchange Offers in September of 2017.
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