Quarterly report pursuant to Section 13 or 15(d)

Derivative Instruments (Tables)

v3.10.0.1
Derivative Instruments (Tables)
6 Months Ended
Jun. 30, 2018
General Discussion of Derivative Instruments and Hedging Activities [Abstract]  
Schedule of Open Fixed Price Swap Positions and Natural Gas Basis Swap Positions
As of June 30, 2018, the Company had the following natural gas basis swap positions for Transco Zone 4.
 
Location
Daily Volume (MMBtu/day)
 
Weighted Average Price
Remaining 2018
Transco Zone 4
20,000

 
$
(0.05
)
2019
Transco Zone 4
60,000

 
$
(0.05
)
2020
Transco Zone 4
60,000

 
$
(0.05
)
Below is a summary of the Company’s open fixed price swap positions as of June 30, 2018. 
 
Location
Daily Volume (MMBtu/day)
 
Weighted
Average Price
Remaining 2018
NYMEX Henry Hub
1,010,000

 
$
3.01

2019
NYMEX Henry Hub
1,154,000

 
$
2.81

2020
NYMEX Henry Hub
204,000

 
$
2.77


 
Location
Daily Volume
(Bbls/day)
 
Weighted
Average Price
Remaining 2018
ARGUS LLS
2,000

 
$
56.22

2019
ARGUS LLS
1,000

 
$
59.55

Remaining 2018
NYMEX WTI
4,500

 
$
53.72

2019
NYMEX WTI
4,000

 
$
58.28

 
Location
Daily Volume
(Bbls/day)
 
Weighted
Average Price
Remaining 2018
Mont Belvieu C3
4,000

 
$
28.97

2019
Mont Belvieu C3
3,000

 
$
27.71

Remaining 2018
Mont Belvieu C5
500

 
$
46.62

2019
Mont Belvieu C5
500

 
$
54.08


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
July 2018 - March 2019
NYMEX Henry Hub
50,000

 
$
3.13

April 2019 - December 2019
NYMEX Henry Hub
30,000

 
$
3.10

Schedule of Derivative Instruments In Balance Sheet
The following table presents the fair value of the Company’s derivative instruments on a gross basis at June 30, 2018 and December 31, 2017:
 
June 30, 2018
 
December 31, 2017
 
(In thousands)
Short-term derivative instruments - asset
$
20,745

 
$
78,847

Long-term derivative instruments - asset
$
7,657

 
$
8,685

Short-term derivative instruments - liability
$
61,161

 
$
32,534

Long-term derivative instruments - liability
$
17,479

 
$
2,989

Schedule of Net Gain (Loss) on Derivatives
The following table presents the gain and loss recognized in net (loss) gain on natural gas, oil and NGL derivatives in the accompanying consolidated statements of operations for the three and six months ended June 30, 2018 and 2017.
 
Net (loss) gain on derivative instruments
 
Three months ended June 30,
 
Six months ended June 30,
 
2018
 
2017
 
2018
 
2017
 
(In thousands)
Natural gas derivatives
$
(31,194
)
 
$
56,668

 
$
(40,890
)
 
$
142,945

Oil derivatives
(24,419
)
 
8,143

 
(33,566
)
 
19,048

Natural gas liquids derivatives
(14,932
)
 
60

 
(12,618
)
 
2,455

Total
$
(70,545
)
 
$
64,871

 
$
(87,074
)
 
$
164,448

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 June 30, 2018
 
Gross Assets (Liabilities)
 
Gross Amounts
 
 
 
Presented in the
 
Subject to Master
 
Net
 
Consolidated Balance Sheets
 
Netting Agreements
 
Amount
 
(In thousands)
Derivative assets
$
28,402

 
$
(23,488
)
 
$
4,914

Derivative liabilities
$
(78,640
)
 
$
23,488

 
$
(55,152
)
 
As of December 31, 2017
 
Gross Assets (Liabilities)
 
Gross Amounts
 
 
 
Presented in the
 
Subject to Master
 
Net
 
Consolidated Balance Sheets
 
Netting Agreements
 
Amount
 
(In thousands)
Derivative assets
$
87,532

 
$
(22,199
)
 
$
65,333

Derivative liabilities
$
(35,523
)
 
$
22,199

 
$
(13,324
)
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 June 30, 2018
 
Gross Assets (Liabilities)
 
Gross Amounts
 
 
 
Presented in the
 
Subject to Master
 
Net
 
Consolidated Balance Sheets
 
Netting Agreements
 
Amount
 
(In thousands)
Derivative assets
$
28,402

 
$
(23,488
)
 
$
4,914

Derivative liabilities
$
(78,640
)
 
$
23,488

 
$
(55,152
)
 
As of December 31, 2017
 
Gross Assets (Liabilities)
 
Gross Amounts
 
 
 
Presented in the
 
Subject to Master
 
Net
 
Consolidated Balance Sheets
 
Netting Agreements
 
Amount
 
(In thousands)
Derivative assets
$
87,532

 
$
(22,199
)
 
$
65,333

Derivative liabilities
$
(35,523
)
 
$
22,199

 
$
(13,324
)