Derivative Instruments (Tables)
|
12 Months Ended |
Dec. 31, 2017 |
|---|
| General Discussion of Derivative Instruments and Hedging Activities [Abstract] |
|
| Schedule of Open Fixed Price Swap Positions |
Below is a summary of the Company's open fixed price swap positions as of December 31, 2017.
|
|
|
|
|
|
|
|
|
|
Location |
Daily Volume (MMBtu/day) |
|
Weighted
Average Price
|
2018 |
NYMEX Henry Hub |
908,000 |
|
|
$ |
3.06 |
|
2019 |
NYMEX Henry Hub |
269,000 |
|
|
$ |
2.93 |
|
|
|
|
|
|
|
|
|
|
|
Location |
Daily Volume (Bbls/day) |
|
Weighted
Average Price
|
2018 |
ARGUS LLS |
1,500 |
|
|
$ |
56.22 |
|
2018 |
NYMEX WTI |
4,000 |
|
|
$ |
52.20 |
|
|
|
|
|
|
|
|
|
|
|
Location |
Daily Volume (Bbls/day) |
|
Weighted
Average Price
|
2018 |
Mont Belvieu C3 |
3,500 |
|
|
$ |
28.03 |
|
2018 |
Mont Belvieu C5 |
500 |
|
|
$ |
46.62 |
|
The Company sold call options and used the associated premiums to enhance the fixed price for a portion of the fixed price natural gas swaps listed above. 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.
|
|
|
|
|
|
|
|
|
|
Location |
Daily Volume (MMBtu/day) |
|
Weighted
Average Price
|
January 2018 - March 2018 |
NYMEX Henry Hub |
20,000 |
|
|
$ |
2.91 |
|
April 2018 - March 2019 |
NYMEX Henry Hub |
50,000 |
|
|
$ |
3.13 |
|
April 2019 - December 2019 |
NYMEX Henry Hub |
30,000 |
|
|
$ |
3.10 |
|
|
| Schedule of Natural Gas Basis Swap Positions |
As of December 31, 2017, the Company had the following natural gas basis swap positions for NPGL Mid-Continent.
|
|
|
|
|
|
|
|
|
|
Location |
Daily Volume (MMBtu/day) |
|
Hedged Differential |
2018 |
NPGL Mid-Continent |
12,000 |
|
|
$ |
(0.26 |
) |
|
| Schedule of Derivative Instruments in Statement of Financial Position |
The following table presents the fair value of the Company's derivative instruments on a gross basis at December 31, 2017 and 2016:
|
|
|
|
|
|
|
|
|
|
December 31, |
|
2017 |
|
2016 |
|
(In thousands) |
Short-term derivative instruments - asset |
$ |
78,847 |
|
|
$ |
3,488 |
|
Long-term derivative instruments - asset |
$ |
8,685 |
|
|
$ |
5,696 |
|
Short-term derivative instruments - liability |
$ |
32,534 |
|
|
$ |
119,219 |
|
Long-term derivative instruments - liability |
$ |
2,989 |
|
|
$ |
26,759 |
|
|
| Schedule of Net Gain (Loss) on Derivatives |
The following table presents the gain and loss recognized in net gain (loss) on natural gas, oil and NGL derivatives in the accompanying consolidated statements of operations for the years ended December 31, 2017, 2016, and 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on derivative instruments |
|
For the Year Ended December 31, |
|
2017 |
|
2016 |
|
2015 |
|
(In thousands) |
Natural gas derivatives |
$ |
232,143 |
|
|
$ |
(165,933 |
) |
|
$ |
182,993 |
|
Oil derivatives |
(3,350 |
) |
|
(5,387 |
) |
|
19,201 |
|
Natural gas liquids derivatives |
(15,114 |
) |
|
(3,186 |
) |
|
1,319 |
|
Total |
$ |
213,679 |
|
|
$ |
(174,506 |
) |
|
$ |
203,513 |
|
|
| Recognized Derivative Assets |
The following table presents the gross amounts of recognized derivative assets and liabilities in the consolidated balance sheets and the amounts that are subject to offsetting under master netting arrangements with counterparties, all at fair value.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2017 |
|
Derivative instruments, gross |
|
Netting adjustments |
|
Derivative instruments, net |
|
(In thousands) |
Derivative assets |
$ |
87,532 |
|
|
$ |
(22,199 |
) |
|
$ |
65,333 |
|
Derivative liabilities |
$ |
(35,523 |
) |
|
$ |
22,199 |
|
|
$ |
(13,324 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2016 |
|
Derivative instruments, gross |
|
Netting adjustments |
|
Derivative instruments, net |
|
(In thousands) |
Derivative assets |
$ |
9,184 |
|
|
$ |
(9,184 |
) |
|
$ |
— |
|
Derivative liabilities |
$ |
(145,978 |
) |
|
$ |
9,184 |
|
|
$ |
(136,794 |
) |
|
| Recognized Derivative Liabilities |
The following table presents the gross amounts of recognized derivative assets and liabilities in the consolidated balance sheets and the amounts that are subject to offsetting under master netting arrangements with counterparties, all at fair value.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2017 |
|
Derivative instruments, gross |
|
Netting adjustments |
|
Derivative instruments, net |
|
(In thousands) |
Derivative assets |
$ |
87,532 |
|
|
$ |
(22,199 |
) |
|
$ |
65,333 |
|
Derivative liabilities |
$ |
(35,523 |
) |
|
$ |
22,199 |
|
|
$ |
(13,324 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2016 |
|
Derivative instruments, gross |
|
Netting adjustments |
|
Derivative instruments, net |
|
(In thousands) |
Derivative assets |
$ |
9,184 |
|
|
$ |
(9,184 |
) |
|
$ |
— |
|
Derivative liabilities |
$ |
(145,978 |
) |
|
$ |
9,184 |
|
|
$ |
(136,794 |
) |
|