Quarterly report pursuant to Section 13 or 15(d)

Risk Management and Derivative Instruments (Tables)

v3.10.0.1
Risk Management and Derivative Instruments (Tables)
9 Months Ended
Sep. 30, 2018
Risk Management and Derivative Instruments  
Schedule of commodity derivative contracts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NYMEX WTI

 

 

Fixed Swaps

 

Three-Way Collars

 

 

 

 

Weighted

 

 

 

Weighted

 

 

 

 

Weighted

 

 

Hedge

 

Avg

 

Hedge

 

Avg

 

Weighted

 

Avg

 

 

Position

 

Strike

 

Position

 

Ceiling

 

Avg Floor

 

Sub-Floor

 

    

(Bbls)

    

Price

    

(Bbls)

    

Price

    

Price

    

Price

Quarter Ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2018

 

175,720

 

$

57.23

 

184,000

 

$

59.93

 

$

50.00

 

$

40.00

December 31, 2018(1)

 

313,720

 

$

58.59

 

46,000

 

$

56.70

 

$

50.00

 

$

40.00

March 31, 2019(1)

 

171,000

 

$

66.48

 

180,000

 

$

63.14

 

$

53.75

 

$

43.75

June 30, 2019(1)

 

133,900

 

$

64.86

 

182,000

 

$

63.14

 

$

53.75

 

$

43.75

September 30, 2019(1)

 

46,000

 

$

62.96

 

184,000

 

$

63.14

 

$

53.75

 

$

43.75

December 31, 2019(1)

 

46,000

 

$

61.43

 

184,000

 

$

63.14

 

$

53.75

 

$

43.75

March 31, 2020(1)

 

 

$

 

91,000

 

$

65.75

 

$

50.00

 

$

40.00

June 30, 2020(1)

 

 

$

 

91,000

 

$

65.75

 

$

50.00

 

$

40.00

September 30, 2020(1)

 

 

$

 

92,000

 

$

65.75

 

$

50.00

 

$

40.00

December 31, 2020(1)

 

 

$

 

92,000

 

$

65.75

 

$

50.00

 

$

40.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NYMEX HENRY HUB

 

 

Fixed Swaps

 

Three-Way Collars

 

 

 

 

 

 

 

 

 

Weighted

 

Weighted

 

Weighted

 

 

Hedge

 

Weighted

 

Hedge

 

Avg

 

Avg

 

Avg

 

 

Position

 

Avg Strike

 

Position

 

Ceiling

 

Floor

 

Sub-Floor

 

 

(MMBtu)

 

Price

 

(MMBtu)

 

Price

 

Price

 

Price

Quarter Ended:

 

  

 

 

  

 

  

 

 

 

 

 

 

 

 

 

September 30, 2018

 

2,116,000

 

$

2.84

 

1,380,000

 

$

3.40

 

$

3.00

 

$

2.50

December 31, 2018(1)

 

2,055,000

 

$

2.95

 

1,380,000

 

$

3.40

 

$

3.00

 

$

2.50

March 31, 2019(1)

 

1,980,000

 

$

3.01

 

1,350,000

 

$

3.40

 

$

3.00

 

$

2.50


(1)

Positions shown represent open commodity derivative contract positions as of  September 30, 2018.

 

Summary of net fair values of commodity derivative instruments by the appropriate balance sheet classification in the Company's unaudited interim condensed consolidated balance sheets

The following table summarizes the net fair values of commodity derivative instruments by the appropriate balance sheet classification in the Company’s unaudited interim condensed consolidated balance sheets for the periods presented (in thousands):

 

 

 

 

 

 

 

 

 

Type

    

Balance Sheet Location (1)

    

September 30, 2018

    

December 31, 2017

Gas swaps

 

Derivative financial instruments - current assets

 

$

 —

 

$

821

Oil collars

 

Derivative financial instruments - current assets

 

 

 —

 

 

(760)

Gas collars

 

Derivative financial instruments - current assets

 

 

 —

 

 

701

Total derivative financial instruments —  current assets

 

 

 

$

 —

 

$

762

Oil swaps

 

Derivative financial instruments — current liabilities

 

$

(6,753)

 

$

(3,679)

Gas swaps

 

Derivative financial instruments - current liabilities

 

 

(292)

 

 

 —

Oil collars

 

Derivative financial instruments - current liabilities

 

 

(6,241)

 

 

(370)

Gas collars

 

Derivative financial instruments - current liabilities

 

 

76

 

 

616

Total derivative financial instruments —  current liabilities

 

 

 

$

(13,210)

 

$

(3,433)

Oil swaps

 

Derivative financial instruments — noncurrent liabilities

 

$

(357)

 

$

(523)

Oil collars

 

Derivative financial instruments — noncurrent liabilities

 

 

(4,004)

 

 

(39)

Total derivative financial instruments —  noncurrent liabilities

 

 

 

$

(4,361)

 

$

(562)

Total derivative fair value at period end

 

  

 

$

(17,571)

 

$

(3,233)


(1)

The fair values of commodity derivative instruments reported in the Company’s unaudited interim condensed consolidated balance sheets are subject to netting arrangements and qualify for net presentation.

 

Summary of location and fair values amounts of all commodity derivative instruments as well as the gross recognized derivative assets, liabilities and amounts offset in the condensed consolidated balance sheet

The following table summarizes the location and fair value amounts of all commodity derivative as well as the gross recognized derivative assets, liabilities and amounts offset in the unaudited interim condensed consolidated balance sheets for the periods presented (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2018

 

 

 

 

 

 

 

 

 

 

Net Recognized

Not Designated as

 

 

 

Gross Recognized

 

Gross Amounts

 

 

Fair Value

ASC 815 Hedges

    

Balance Sheet Location Classification

    

Assets/Liabilities

    

Offset

    

 

Assets/Liabilities

Derivative Assets:

 

  

 

 

  

  

 

 

  

 

 

Commodity contracts

 

Derivative financial instruments — current

 

$

901

 

$

(901)

 

$

 —

Commodity contracts

 

Derivative financial instruments — noncurrent

 

 

1,076

 

 

(1,076)

 

 

 —

 

 

  

 

$

1,977

 

$

(1,977)

 

$

 —

Derivative Liabilities:

 

  

 

 

  

  

 

 

  

 

 

Commodity contracts

 

Derivative financial instruments — current

 

$

(14,111)

 

$

901

 

$

(13,210)

Commodity contracts

 

Derivative financial instruments — noncurrent

 

 

(5,437)

  

 

1,076

 

 

(4,361)

 

 

  

 

$

(19,548)

 

$

1,977

 

$

(17,571)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

 

 

 

 

 

 

 

 

 

Net Recognized

Not Designated as

 

 

 

Gross Recognized

 

Gross Amounts

 

Fair Value

ASC 815 Hedges

    

Balance Sheet Location Classification

    

Assets/Liabilities

    

Offset

    

Assets/Liabilities

Derivative Assets:

 

  

 

 

  

 

 

  

 

 

  

Commodity contracts

 

Derivative financial instruments - current

 

$

3,479

 

$

(2,717)

 

$

762

Commodity contracts

 

Derivative financial instruments - noncurrent

 

 

905

 

 

(905)

 

 

 —

 

 

  

 

$

4,384

 

$

(3,622)

 

$

762

Derivative Liabilities:

 

  

 

 

  

 

 

  

 

 

  

Commodity contracts

 

Derivative financial instruments - current

 

$

(6,150)

 

$

2,717

 

$

(3,433)

Commodity contracts

 

Derivative financial instruments - noncurrent

 

 

(1,467)

 

 

905

 

 

(562)

 

 

  

 

$

(7,617)

 

$

3,622

 

$

(3,995)

 

Schedule of net cash received for commodity derivative contracts and unrealized net gains or unrealized net losses related to the change in fair value of derivative instruments in gains (losses) on commodity derivative contracts - net for the periods

The following table presents net cash received or net cash paid for the settlement of commodity derivative contracts and unrealized net gains or unrealized net losses recorded by the Company related to the change in fair value of the derivative instruments in gains (losses) on commodity derivative contracts—net for the periods presented (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months

 

For the Nine Months

 

 

Ended September 30,

 

Ended September 30,

 

    

2018

    

2017

    

2018

    

2017

Net cash received (paid) for commodity derivative contracts

 

$

(3,854)

 

$

2,909

 

$

(7,532)

 

$

6,149

Unrealized net gains (losses)

 

 

(2,729)

 

 

(6,500)

 

 

(14,338)

 

 

2,618

Gains (losses) on commodity derivative contracts—net

 

$

(6,583)

 

$

(3,591)

 

$

(21,870)

 

$

8,767