Quarterly report pursuant to Section 13 or 15(d)

Derivative Instruments (Tables)

v3.20.2
Derivative Instruments (Tables)
3 Months Ended
Mar. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Assets and Liabilities
The following tables summarize the location and fair value amounts of all the Company’s derivative instruments in the Condensed Consolidated Balance Sheets, as well as the gross recognized derivative assets, liabilities and offset amounts in the Condensed Consolidated Balance Sheets:
 
 
March 31, 2020
 
 
Gross Fair Value
 
Gross Amounts Offset (1)
 
Net Recognized Fair Value
 
 
(In thousands)
Assets
 
 
 
 
 
 
     Commodity derivatives - current
 
$
165,409

 
$
(85,502
)
 
$
79,907

     Commodity derivatives - non-current
 
154,738

 
(93,954
)
 
60,784

Total assets
 
$
320,147

 
$
(179,456
)
 
$
140,691

 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
     Commodity derivatives - current
 
$
(85,502
)
 
$
85,502

 
$

     Commodity derivatives - non-current
 
(93,954
)
 
93,954

 

     Interest rate derivatives - current
 
(2,122
)
 

 
(2,122
)
Interest rate derivatives - non-current
 
(3,041
)
 

 
(3,041
)
Total liabilities
 
$
(184,619
)
 
$
179,456

 
$
(5,163
)
(1)
The Company has agreements in place with all of its counterparties that allow for the financial right of offset for derivative assets and liabilities.

 
 
December 31, 2019
 
 
Gross Fair Value
 
Gross Amounts Offset (1)
 
Net Recognized Fair Value
 
 
(In thousands)
Assets
 
 
 
 
 
 
     Commodity derivatives - current
 
$
28,512

 
$
(18,172
)
 
$
10,340

     Commodity derivatives - non-current
 
61,241

 
(28,136
)
 
33,105

     Interest rate derivatives - current
 
10

 
(10
)
 

Total assets
 
$
89,763

 
$
(46,318
)
 
$
43,445

 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
     Commodity derivatives - current
 
$
(22,014
)
 
$
18,172

 
$
(3,842
)
     Commodity derivatives - non-current
 
(28,528
)
 
28,136

 
(392
)
     Interest rate derivatives - current
 
(184
)
 
10

 
(174
)
Interest rate derivatives - non-current
 
(492
)
 

 
(492
)
Series B Preferred Stock bifurcated derivative - non-current
 
(416
)
 

 
(416
)
Total liabilities
 
$
(51,634
)
 
$
46,318

 
$
(5,316
)
(1)
The Company has agreements in place with all of its counterparties that allow for the financial right of offset for derivative assets and liabilities.
Schedule of Derivative Instruments
As of March 31, 2020, the open derivative positions with respect to future production and interest rates were as follows:
 
 
2020
 
2021
 
2022
Commodity derivative swaps
Oil:
 
 
 
 
 
 
Notional volume (Bbls) (1)(2)
760,000

 

 

 
Weighted average fixed price ($/Bbl)
$
67.46

 
$

 
$

Natural gas:
 
 
 
 
 
 
Notional volume (MMBtu)
1,595,368

 
1,615,792

 
1,276,142

 
Weighted average fixed price ($/MMbtu)
$
2.73

 
$
2.79

 
$
2.85

 
 
 
 
 
 
 
Commodity derivative three-way collars
Oil:
 
 
 
 
 
 
Notional volume (Bbls)
2,475,000

 
4,200,000

 
2,000,000

 
Weighted average ceiling price ($/Bbl)
$
70.29

 
$
60.40

 
$
61.45

 
Weighted average floor price ($/Bbl)
$
57.50

 
$
54.49

 
$
55.00

 
Weighted average sold put option price ($/Bbl)
$
47.50

 
$
45.51

 
$
45.00

 
 
 
 
 
 
 
Crude oil basis swaps
Midland / Cushing:
 
 
 
 
 
 
Notional volume (Bbls)
3,905,000

 
4,200,000

 
2,100,000

 
Weighted average fixed price ($/Bbl)
$
(0.85
)
 
$
0.49

 
$
0.54

 
 
 
 
 
 
 
Argus WTI roll:
 
 
 
 
 
 
Notional volume (Bbls)
370,650

 

 

 
Weighted average fixed price ($/Bbl)
$
0.40

 
$

 
$

 
 
 
 
 
 
 
NYMEX WTI roll:
 
 
 
 
 
 
Notional volume (Bbls)
2,102,752

 

 

 
Weighted average fixed price ($/Bbl)
$
0.42

 
$

 
$

 
 
 
 
 
 
 
Natural gas basis swaps
EP Permian:
 
 
 
 
 
 
Notional volume (MMBtu)
1,617,388

 

 

 
Weighted average fixed price ($/MMBtu)
$
(1.03
)
 
$

 
$

 
 
 
 
 
 
 
Interest rate swaps:
 
 
 
 
 
 
Notional principal (3)
$
150,000,000

 
$
150,000,000

 
$

 
Average fixed rate
1.721
%
 
1.721
%
 


(1)
During the second quarter of 2019, the Company entered into commodity derivative swaps where it bought 2,160,000 barrels of crude oil at a weighted average fixed price of $50.48 per barrel to offset commodity derivative swaps for the year ended December 31, 2021, it previously sold off 2,160,000 barrels of crude oil at a weighted average fixed price of $61.21 per barrel.
(2)
During the second quarter of 2019, the Company entered into commodity derivative swaps where it bought 1,100,000 barrels of crude oil at a weighted average fixed price of $50.55 per barrel to offset commodity derivative swaps for the year ended December 31, 2022, it previously sold off 1,100,000 barrels of crude oil at a weighted average fixed price of $58.42 per barrel.
(3)
Interest rate swaps expire in August 2022.
Schedule of Derivative Instruments in Condensed Consolidated Statements of Operations
The effect of the derivative activity on the Company’s Condensed Consolidated Statements of Operations for the following periods was as follows:
 
Three Months
 
Ended March 31,
 
2020
 
2019
 
(In thousands)
Realized gain (loss) on derivatives
 

 
 

Commodity derivative options
$
2,033

 
$
1,500

Commodity derivative swaps
6,474

 
(2,523
)
Interest rate swaps
(14
)
 

Total realized gain (loss) on derivatives
$
8,493

 
$
(1,023
)
 
 
 
 
Unrealized gain (loss) on derivatives
 

 
 

Commodity derivative options
$
52,842

 
$
(25,566
)
Commodity derivative swaps
48,771

 
(77,982
)
Interest rate swaps
(4,497
)
 

Series B Preferred Stock bifurcated derivative
416

 
81

Total unrealized gain (loss) on derivatives
$
97,532

 
$
(103,467
)