Quarterly report pursuant to Section 13 or 15(d)

Derivative Instruments (Tables)

v3.10.0.1
Derivative Instruments (Tables)
9 Months Ended
Sep. 30, 2018
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 amounts offset in the condensed consolidated balance sheets:

 
 
September 30, 2018
 
 
Gross Fair Value
 
Gross Amounts Offset (1)
 
Net Recognized Fair Value
 
 
(In thousands)
Assets
 
 
 
 
 
 
     Commodity derivatives - current
 
$
14,090

 
$
(14,090
)
 
$

     Commodity derivatives - non-current
 
16,679

 
(16,679
)
 

Total assets
 
$
30,769

 
$
(30,769
)
 
$

 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
     Commodity derivatives - current
 
$
(67,353
)
 
$
14,090

 
$
(53,263
)
     Commodity derivatives - non-current
 
(72,932
)
 
16,679

 
(56,253
)
Series B Preferred Stock bifurcated derivative - non-current
 
(572
)
 

 
(572
)
Total liabilities
 
$
(140,857
)
 
$
30,769

 
$
(110,088
)

(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, 2017
 
 
Gross Fair Value
 
Gross Amounts Offset (1)
 
Net Recognized Fair Value
 
 
(In thousands)
Assets
 
 
 
 
 
 
     Commodity derivatives - current
 
$
1,079

 
$
(1,079
)
 
$

     Commodity derivatives - non-current
 
120

 
(120
)
 

Total assets
 
$
1,199

 
$
(1,199
)
 
$

 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
     Commodity derivatives - current
 
$
(11,851
)
 
$
1,079

 
$
(10,772
)
     Commodity derivatives - non-current
 
(7,503
)
 
120

 
(7,383
)
Series B Preferred Stock bifurcated derivative - non-current
 
(625
)
 

 
(625
)
Total liabilities
 
$
(19,979
)
 
$
1,199

 
$
(18,780
)

(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 September 30, 2018, the open commodity derivative positions with respect to future production were as follows:

 
 
2018
 
2019
 
2020
 
2021
 
2022
Commodity derivative swaps
Oil:
 
 
 
 
 
 
 
 
 
 
Notional volume (Bbls)
699,000

 
2,664,000

 
960,000

 
360,000

 
300,000

 
Weighted average fixed price ($/Bbl)
$
55.15

 
$
53.59

 
$
51.16

 
$
50.42

 
$
50.12

Natural gas:
 
 
 
 
 
 
 
 
 
 
Notional volume (MMBtu)
960,000

 
2,220,000

 
1,500,000

 
1,200,000

 
1,200,000

 
Weighted average fixed price ($/MMbtu)
$
3.02

 
$
2.88

 
$
2.84

 
$
2.85

 
$
2.87

Ethane:
 
 
 
 
 
 
 
 
 
 
Notional volume (Gallons)
2,523,528

 
12,444,138

 

 

 

 
Weighted average fixed price ($/Gallons)
$
0.35

 
$
0.28

 
$

 
$

 
$

Propane:
 
 
 
 
 
 
 
 
 
 
Notional volume (Gallons)
1,682,352

 
8,296,218

 

 

 

 
Weighted average fixed price ($/Gallons)
$
0.97

 
$
0.79

 
$

 
$

 
$

Pentanes:
 
 
 
 
 
 
 
 
 
 
Notional volume (Gallons)
560,700

 
2,765,700

 

 

 

 
Weighted average fixed price ($/Gallons)
$
1.53

 
$
1.47

 
$

 
$

 
$

 
 
 
 
 
 
 
 
 
 
 
Commodity derivative two-way collars
Oil:
 
 
 
 
 
 
 
 
 
 
Notional volume (Bbls)
182,000

 
601,000

 

 

 

 
Weighted average ceiling price ($/Bbl)
$
61.28

 
$
61.30

 
$

 
$

 
$

 
Weighted average floor price ($/Bbl)
$
57.53

 
$
55.21

 
$

 
$

 
$

 
 
 
 
 
 
 
 
 
 
 
Commodity derivative three-way collars
Oil:
 
 
 
 
 
 
 
 
 
 
Notional volume (Bbls)

 
1,531,832

 
3,294,000

 

 

 
Weighted average ceiling price ($/Bbl)
$

 
$
68.52

 
$
70.29

 
$

 
$

 
Weighted average floor price ($/Bbl)
$

 
$
57.62

 
$
57.50

 
$

 
$

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

 
$
45.51

 
$
47.50

 
$

 
$

 
 
 
 
 
 
 
 
 
 
 
Crude oil basis swaps
Midland / Cushing:
 
 
 
 
 
 
 
 
 
 
Notional volume (Bbls)
920,000

 
4,800,832

 
3,513,600

 

 

 
Weighted average fixed price ($/Bbl)
$
(4.95
)
 
$
(4.93
)
 
$
(1.43
)
 
$

 
$

 
 
 
 
 
 
 
 
 
 
 
Argus WTI roll:
 
 
 
 
 
 
 
 
 
 
Notional volume (Bbls)
920,000

 

 

 

 

 
Weighted average fixed price ($/Bbl)
$
1.14

 
$

 
$

 
$

 
$

 
 
 
 
 
 
 
 
 
 
 
Natural gas basis swaps
EP Permian
 
 
 
 
 
 
 
 
 
 
Notional volume (MMBtu)

 
1,781,472

 
2,096,160

 

 

 
Weighted average fixed price ($/MMBtu)
$

 
$
(1.03
)
 
$
(1.03
)
 
$

 
$

Schedule of Derivative Instruments in Statement of Financial Position
For the three and nine months ended September 30, 2018 and 2017, the effect of the derivative activity on the Company’s Condensed Consolidated Statements of Operations was as follows:
 
 
Three Months
 
Nine Months
 
 
Ended September 30,
 
Ended September 30,
 
 
2018
 
2017
 
2018
 
2017
 
 
(In thousands)
Realized gain (loss) on derivatives
 
 

 
 

 
 

 
 

Commodity derivative options
 
$

 
$
18

 
$
19

 
$
172

Commodity derivative swaps
 
(4,999
)
 
454

 
(17,212
)
 
(10
)
Total
 
(4,999
)
 
472

 
(17,193
)
 
162

Interest rate swap
 

 
6

 

 
(143
)
Total realized gain (loss) on derivatives
 
$
(4,999
)
 
$
478

 
$
(17,193
)
 
$
19

 
 
 
 
 
 
 
 
 
Unrealized gain (loss) on derivatives
 
 

 
 

 
 

 
 

Commodity derivative options
 
$
(45,349
)
 
$
55

 
$
(59,514
)
 
$
361

Commodity derivative swaps
 
(16,966
)
 
(1,978
)
 
(31,846
)
 
1,228

Total
 
(62,315
)
 
(1,923
)
 
(91,360
)
 
1,589

Interest rate swap
 

 

 
$

 
$
(226
)
Series B Preferred Stock bifurcated derivative
 
(104
)
 

 
53

 

Total unrealized gain (loss) on derivatives
 
$
(62,419
)
 
$
(1,923
)
 
$
(91,307
)
 
$
1,363